Financial Performance - For the fiscal year ending December 31, 2019, the company recorded a revenue of approximately SGD 15.2 million, a decrease of about SGD 1.3 million or 7.8% compared to the fiscal year ending December 31, 2018[10]. - The company reported a net loss of approximately SGD 1.7 million for the fiscal year 2019, an improvement of about SGD 1.4 million from a net loss of SGD 3.1 million in the fiscal year 2018[10]. - The decrease in revenue was mainly due to a reduction in customer order volume, although there was an improvement in order volume in the last quarter of 2019[10]. - Revenue decreased by approximately SGD 1.3 million or about 7.8% from approximately SGD 16.5 million in the fiscal year 2018 to approximately SGD 15.2 million in 2019, mainly due to a reduction in customer orders[14]. - Overall gross profit decreased by approximately SGD 0.4 million or about 20.5% from approximately SGD 1.9 million in 2018 to approximately SGD 1.5 million in 2019, with the gross profit margin dropping from about 11.6% to 10.0%[17]. - Total employee costs for the fiscal year 2019 were approximately SGD 5.1 million, a slight decrease from SGD 5.2 million in 2018[38]. - The distributable reserves of the company as of December 31, 2019, were approximately SGD 8.9 million, a decrease from SGD 9.7 million in the fiscal year 2018[138]. - The company did not recommend any final dividend for the fiscal year 2019[126]. Business Operations - Customer orders for the core business of manufacturing and selling disposable medical device components began to increase since the fourth quarter of 2019, despite a challenging operating environment[9]. - The company completed the acquisition of Pin Hao Global Limited on January 3, 2020, which primarily engages in the development, manufacturing, and installation of gaming machines and equipment in China[9]. - The company is diversifying its business by launching a Chinese liquor trading business through its indirectly owned subsidiary in China[9]. - The company has diversified its revenue sources by engaging in the trade of Chinese alcoholic beverages and developing, manufacturing, and installing gaming machines and equipment, which is expected to enhance financial performance[13]. - The company plans to develop and enhance its injection molding business, with SGD 4.11 million allocated for this purpose, although full utilization has been delayed due to customer product transition[43]. - The company has faced delays in hiring sales and marketing staff, impacting the utilization rate of allocated funds for this purpose[43]. Governance and Compliance - The board of directors confirmed the accuracy and completeness of the report, ensuring no misleading or fraudulent elements were present[2]. - The company has complied with the corporate governance code, except for the separation of the roles of chairman and CEO, which are held by the same individual, Mr. Pan[75]. - The company emphasizes the importance of sound corporate governance for long-term success and shareholder value creation[74]. - The company has established service agreements with non-executive and independent non-executive directors, with a one-year term and a notice period for termination[78]. - The audit committee reviewed the audited annual results for the fiscal year 2019 and confirmed that the annual report complies with applicable standards and regulations[94]. - The company has maintained compliance with applicable laws and regulations, ensuring significant operational adherence[131]. - The company has not experienced any non-compliance events during the fiscal year 2019 according to the directors' confirmations[171]. Financial Position - As of December 31, 2019, the company had cash and cash equivalents of approximately SGD 3.5 million, down from SGD 6.4 million in 2018[23]. - Total borrowings amounted to approximately SGD 5.5 million as of December 31, 2019, which included lease liabilities of approximately SGD 4.6 million and bank borrowings of approximately SGD 0.9 million[24]. - The current ratio as of December 31, 2019, was approximately 2.0 times, down from 3.1 times in 2018, primarily due to a decrease in cash and cash equivalents[23]. - The carrying amounts of property, plant, and equipment, and right-of-use assets are SGD 1.9 million and SGD 4.5 million, respectively, accounting for a significant portion of total assets[199]. Management and Directors - Tan Yew Bock appointed as independent non-executive director since December 19, 2017, with experience in engineering and management in the medical technology sector[59]. - Wang Jianyuan serves as independent non-executive director and audit committee chairman, with over 24 years of experience in financial auditing for multinational companies[60]. - Zhou Wenguang has been an independent non-executive director since December 19, 2017, with over 15 years of legal practice experience[62]. - Fu Zhi Hui promoted to operations manager in February 2019, responsible for managing production operations at Inzign[63]. - Liu Zhongwei appointed as company secretary on August 25, 2017, with over 15 years of accounting and finance experience[70]. - The board consists of seven members, including three executive directors, one non-executive director, and three independent non-executive directors, ensuring independent judgment[78]. Risk Management - The board and senior management are responsible for overseeing the risk management and internal control systems, which were reviewed during the reporting period[107]. - The company has not established an internal audit function but has engaged Crowe Horwath First Trust Risk Advisory Pte Ltd to review internal controls[107]. - The impairment assessment procedures include understanding management's processes and evaluating key assumptions such as revenue growth rates and discount rates[196]. - The company analyzes revenue growth rates based on past performance and customer order expectations[200].
官酝控股(08513) - 2019 - 年度财报