Financial Performance - Total revenue increased by approximately SGD 8.2 million (or about 33%) from SGD 25.1 million in FY2018 to approximately SGD 33.3 million in FY2019[30]. - Net profit after tax increased by SGD 1.1 million to SGD 1.6 million for FY2019, with adjusted net profit rising to SGD 3.2 million after excluding non-recurring expenses related to the IPO[22]. - Revenue from fresh eggs accounted for approximately 62% of total revenue in FY2019, up from 57% in FY2018, with sales increasing from approximately SGD 14.3 million to SGD 20.5 million[31]. - Sales of processed egg products rose by SGD 1 million to SGD 13 million in FY2019, with the introduction of new products such as Japanese omelette rolls[22]. - Revenue from processed eggs increased from approximately SGD 10.8 million in FY2018 to about SGD 12.8 million in FY2019, representing a growth of approximately 18.5%[32]. - Revenue from agricultural products at fair value increased by approximately SGD 1.8 million (or about 66.7%) from approximately SGD 2.7 million in FY2018 to about SGD 4.5 million in FY2019, driven by higher wholesale prices[37]. - Total sales cost rose by approximately SGD 9.5 million (or about 43%) from approximately SGD 22.0 million in FY2018 to about SGD 31.5 million in FY2019, primarily due to increased egg procurement from Guan Sing Eggs[33]. - Gross profit before fair value adjustment increased from approximately SGD 5.8 million in FY2018 to about SGD 6.3 million in FY2019, while gross profit after fair value adjustment decreased from approximately SGD 3.1 million to about SGD 1.8 million (a decline of about 41.9%)[34]. - Other income/loss shifted from a net income of approximately SGD 67,000 in FY2018 to a net loss of about SGD 199,000 in FY2019, a change of approximately SGD 266,000, mainly due to foreign exchange losses in FY2019[35]. Expansion and Development - The company has signed a 20-year lease to expand its egg production facilities, which is expected to double the annual production capacity upon completion in 2021[23]. - A new quail farm is being established on a 16,000 square meter site in Singapore, with an estimated investment of SGD 4.5 million, expected to produce approximately 15 million quail eggs annually[25]. - The company plans to enhance its distribution network by increasing the number of egg distributors in the supply chain[24]. - The expansion of the quail farm is part of a strategy to strengthen the supply chain and capture profits across the entire supply chain[25]. - The company aims to solidify its position as a leading egg distributor in Singapore through these developments[26]. - The group plans to expand its egg production capacity by constructing additional facilities, with a revised plan to build one layer of small hen houses and six layer egg hen houses over three years[70]. - The first phase of the expansion plan is expected to be completed by mid-2020, which includes planning and foundation work for the entire facility[71]. - The net proceeds from the share offering are approximately SGD 180,000, intended for the construction of new production facilities[76]. - As of March 31, 2019, the group has utilized approximately SGD 31.0 million of the net proceeds for expanding production capacity, with SGD 3.4 million allocated for working capital and other general corporate purposes[93]. Risk Management - The group has identified risks related to poultry diseases and infections, emphasizing the importance of effective risk management practices[94]. - The company faces risks related to food contamination and spoilage, which may lead to product liability claims[95]. - The company may be impacted by fluctuations in the import prices of eggs from Malaysia[98]. - The company relies on foreign labor, which may pose operational risks[101]. - The company does not have long-term contracts with major customers and suppliers, increasing business uncertainty[104]. - The company faces risks related to customer credit and payment defaults[105]. - The fair value of the company's biological assets may fluctuate significantly over different periods, leading to unstable operational performance[108]. - Changes in social, political, regulatory, economic, and legal developments, as well as shifts in Singapore government policies, could have a significant adverse impact on the business[110]. - Loss of government funding or reductions in related funding may negatively affect the company's financial performance and operational results[111]. Corporate Governance - The company has implemented new compliance measures to strengthen corporate governance, ensuring adherence to regulatory standards[129]. - The board of directors is committed to enhancing shareholder value through strategic decision-making and performance monitoring[131]. - The board consists of three executive directors and three independent non-executive directors as of March 31, 2019, and the report date[134]. - The chairman and CEO, Mr. Ma, has been leading the group since 2009 and was appointed chairman in September 2018, ensuring effective strategy planning and implementation[136]. - All independent non-executive directors have confirmed their independence according to GEM listing rules during the reporting period[137]. - The company held three board meetings during the reporting period, with all directors attending all meetings[148]. - The board has established three committees: audit committee, remuneration committee, and nomination committee, with defined written terms of reference[149]. - The Audit Committee held four meetings during the reporting period, with all members attending all meetings[150]. - The Compensation Committee held one meeting to review and recommend compensation policies for directors and senior management[156]. - The Nomination Committee held one meeting to review the board's structure, size, and diversity policy[163]. - The company has adopted a board diversity policy with measurable objectives to enhance board diversity[163]. - The board is committed to continuous professional development for all directors to ensure they remain informed about relevant laws and regulations[165]. - The company continues to apply the going concern basis in preparing its consolidated financial statements[167]. - The external auditor, PricewaterhouseCoopers LLP, is responsible for auditing the financial statements[168]. - The auditor's fees for the fiscal year 2019 amounted to SGD 379,000, with SGD 231,000 for statutory audit services and SGD 148,000 for the company's listing accounting services[169]. - The board is responsible for overseeing the group's risk management and internal control systems, which are reviewed at least annually[170]. - The internal audit function was outsourced to an independent internal audit firm, which reports directly to the audit committee[172]. - The company emphasizes effective communication with shareholders through regular reports and meetings, enhancing investor relations[174]. - The company has established appropriate procedures for handling and disclosing inside information in compliance with relevant regulations[173]. - The management is responsible for implementing the strategies set by the board and regularly reporting on operational performance[182]. - The company has maintained its articles of association without changes during the reporting period, adhering to applicable laws and regulations[184]. - The company encourages shareholders to attend meetings to stay informed about business conditions and express any concerns to the board[174]. Shareholder Information - The company will not declare any final dividend for the fiscal year 2019[190]. - The total issued share capital as of March 31, 2019, was 500,000,000 shares with a par value of HKD 0.01 each[198]. - The reserves available for distribution to shareholders as of March 31, 2019, were approximately SGD 6.7 million[200]. - The board will consider various factors, including actual and expected financial performance, when deciding on dividends[190]. - The company aims to balance sufficient funding for business development and returns to shareholders[190]. - The board has adopted a dividend policy that takes into account the company's operating performance and cash flow[190]. - The company has significant considerations regarding its capital needs and potential impacts on its reputation when determining dividends[190]. Future Outlook - The company provided guidance for the next fiscal year, projecting revenue growth of BB% and an expected EBITDA margin of CC%[125]. - New product launches are anticipated to contribute an additional $DD million in revenue, with a focus on innovative technologies[125]. - The company is expanding its market presence in the Asia-Pacific region, targeting a market share increase of EE% by the end of the next fiscal year[125]. - Strategic acquisitions are planned to enhance the company's product offerings, with an estimated investment of $FF million[125]. - The company is investing in R&D, allocating $GG million to develop new technologies aimed at improving operational efficiency[125]. - The management team emphasized the importance of sustainability initiatives, aiming to reduce carbon emissions by HH% over the next five years[125].
永续农业(08609) - 2019 - 年度财报