Financial Performance - The total revenue for the year ended December 31, 2020, was approximately SGD 27.4 million, an increase of about SGD 3.6 million or 15.2% compared to SGD 23.8 million in the previous year[15]. - The group recorded a loss of approximately SGD 0.3 million for the year ended December 31, 2020, a decrease from a loss of approximately SGD 0.9 million in the previous year[10]. - Gross profit increased by approximately SGD 1.1 million, contributing to the reduction in loss[10]. - The overall gross profit increased by approximately SGD 1.1 million or about 17.6% to approximately SGD 7.2 million for the year ended December 31, 2020, compared to SGD 6.1 million for the year ended December 31, 2019[17]. - The overall gross profit margin remained stable at approximately 25.5% and 26.0% for the years ended December 31, 2019, and December 31, 2020, respectively[17]. - The net loss for the year decreased by approximately SGD 0.6 million or about 65.0% to approximately SGD 0.3 million for the year ended December 31, 2020, from SGD 0.9 million for the year ended December 31, 2019[22]. - Revenue for the year ended December 31, 2020, was SGD 27,441,000, an increase of 15.0% from SGD 23,825,000 in 2019[189]. - Gross profit for 2020 was SGD 7,135,000, representing a gross margin of 26.0%, compared to SGD 6,066,000 and a margin of 25.4% in 2019[189]. - The company reported a basic and diluted loss per share of SGD 0.06 for 2020, improved from SGD 0.14 in 2019[189]. - The total comprehensive income for the year ended December 31, 2020, was a loss of SGD 1,911,000, compared to a loss of SGD 883,000 in 2019, indicating a significant decline in performance[197]. Cost Management - Other income rose by approximately SGD 0.2 million, while selling and distribution costs decreased by approximately SGD 0.2 million[10]. - Selling costs increased by approximately SGD 2.5 million or 14.3%, reaching about SGD 20.3 million for the year ended December 31, 2020[16]. - Selling and distribution costs decreased by approximately SGD 0.2 million or about 9.6% to approximately SGD 1.7 million for the year ended December 31, 2020, from SGD 1.9 million for the year ended December 31, 2019[17]. - Administrative and other operating expenses increased by approximately SGD 0.9 million or about 16.8% to approximately SGD 6.0 million for the year ended December 31, 2020, from SGD 5.1 million for the year ended December 31, 2019[18]. Business Strategy and Expansion - The company plans to continue expanding its customer base and exploring new business and investment opportunities despite challenges posed by the COVID-19 pandemic[10]. - The acquisition of a company engaged in the distribution of disinfectant and sterilization products is expected to be completed in the first quarter of 2021[13]. - The increase in revenue was primarily driven by higher demand from customers in the marine supply sector[15]. - The company is taking necessary actions to minimize the impact of the pandemic on its core business and ensure the safety of its employees and partners[13]. - The company aims to maintain good corporate governance and effective cost control to maximize returns for shareholders[10]. Financial Position and Ratios - The total borrowings as of December 31, 2020, amounted to approximately SGD 16.7 million, an increase from SGD 15.0 million as of December 31, 2019[25]. - The debt-to-equity ratio increased to approximately 109.1% as of December 31, 2020, from 95.8% as of December 31, 2019, primarily due to an increase in payables by approximately SGD 2.2 million[25]. - The current ratio decreased to approximately 1.4 times as of December 31, 2020, down from 2.3 times in 2019, mainly due to a 91.0% increase in current liabilities[24]. - The company's total equity attributable to owners decreased to SGD 15,332,000 as of December 31, 2020, down from SGD 17,569,000 at the beginning of 2019, showing a decline in shareholder value[197]. Shareholder Information - The company did not recommend a final dividend for the year ending December 31, 2020, consistent with the previous year[43]. - The company’s reserves available for distribution to shareholders as of December 31, 2020, were approximately SGD 3.5 million, down from SGD 4.2 million in 2019[46]. - The company has adopted a general dividend policy, considering actual and expected financial performance, economic conditions, and other factors when proposing dividends[156]. - Shareholders can propose independent resolutions at the annual general meeting to safeguard their rights and interests[148]. Corporate Governance - The company aims to maintain good corporate governance and effective cost control to maximize returns for shareholders[10]. - The board of directors consists of 2 executive directors, 1 non-executive director, and 3 independent non-executive directors, with no significant relationships among them[117]. - The company has complied with all applicable code provisions of the Corporate Governance Code as of December 31, 2020[111]. - The company has established specific committees, including the audit committee, remuneration committee, and nomination committee, to oversee specific aspects of the company's affairs[122]. - The company has purchased liability insurance for its directors to provide protection against any legal liabilities arising from their duties[115]. - The company has established a clear separation of roles between the chairman and the CEO to balance power distribution[112]. Risk Management - The company faces risks related to the retention of major customers, which could adversely affect its business and operating performance[100]. - The company is exposed to financial risks related to foreign currency, interest rates, credit, and liquidity in its daily operations[102]. - The board is responsible for overseeing the risk management and internal control systems, which are designed to manage risks rather than eliminate them, providing reasonable assurance against material misstatements or losses[141]. - The internal control system is reviewed continuously by the board and the audit committee, with a three-tier risk management approach adopted to identify, assess, and manage various types of risks[142]. - As of December 31, 2020, the risk management and internal control systems were deemed effective and adequate by the board and audit committee, based on independent consultant reports[144]. Management and Team - The company was co-founded in March 2001 by Mr. Chen and Mr. Ni, who currently serve as the Executive Director and CEO respectively[158]. - The company has a strong management team with diverse backgrounds in project management, accounting, and marketing, enhancing its operational capabilities[162][163][166]. - The management team includes individuals with extensive experience in financial management and strategic planning, contributing to the company's overall strategy[168]. - The board of directors includes independent non-executive members with significant expertise in finance and marketing, ensuring robust governance[163][167]. Audit and Compliance - The company appointed Crowe (HK) CPA Limited as its auditor to fill the vacancy left by the resignation of the previous auditor, with the financial statements for the year ended December 31, 2020, audited by Crowe[109]. - The audit committee reviewed and discussed the group's quarterly, interim, and annual financial statements, concluding that the consolidated financial statements for the year ended December 31, 2020, comply with applicable accounting standards and GEM Listing Rules[124]. - The independent auditor's report confirms that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2020, in accordance with Hong Kong Financial Reporting Standards[173]. - The auditor's responsibility includes obtaining reasonable assurance that the consolidated financial statements are free from material misstatement[183].
COOL LINK(08491) - 2020 - 年度财报