Financial Performance - The group's total revenue increased by approximately 39% from about SGD 33.3 million in FY2019 to approximately SGD 46.3 million in FY2020[8]. - Net profit after tax rose to SGD 5.2 million in FY2020, up from SGD 3.2 million in FY2019, excluding non-recurring expenses related to the IPO[8]. - Revenue from fresh eggs accounted for approximately 64% of total revenue in FY2020, increasing by about SGD 9.0 million to approximately SGD 29.5 million[16]. - Revenue from processed eggs represented approximately 36% of total revenue in FY2020, rising by about SGD 4.0 million to approximately SGD 16.8 million[17]. - Gross profit before fair value adjustment increased from approximately SGD 6.3 million in FY2019 to approximately SGD 13.0 million in FY2020, representing an increase of about SGD 6.7 million[19]. - Gross profit margin before fair value adjustment rose from approximately 19% in FY2019 to approximately 28% in FY2020[19]. - Other net income changed from a net loss of approximately SGD 199,000 in FY2019 to a net income of approximately SGD 288,000 in FY2020, a change of approximately SGD 487,000[20]. - Revenue from agricultural products at fair value increased from approximately SGD 4.5 million in FY2019 to approximately SGD 9.4 million in FY2020, representing an increase of about 109%[22]. Costs and Expenses - The total cost of sales increased by approximately 36% from about SGD 31.5 million in FY2019 to approximately SGD 42.7 million in FY2020, primarily due to higher sales leading to increased procurement of fresh eggs[18]. - Sales and distribution expenses increased by approximately SGD 1.4 million (or about 54%) from approximately SGD 2.6 million in FY2019 to approximately SGD 4.0 million in FY2020[24]. - Employee costs increased to approximately SGD 7.2 million in FY2020 from approximately SGD 5.8 million in FY2019[39]. Acquisitions and Expansion - The company completed the acquisition of Tew Seng Cheow Kee (TSCK), enhancing its position in the Singapore market[8]. - The expansion plan for egg production facilities is expected to double the annual production capacity of fresh eggs by 2022[9]. - The quail breeding facility is expected to produce approximately 15 million quail eggs annually upon completion[11]. - The company is actively seeking opportunities to acquire local distributors to enhance its competitive advantage in the egg distribution business[10]. Risk Management - The group faces a currency risk of SGD 19,000 due to a 5% appreciation/depreciation of USD against SGD as of March 31, 2020, compared to SGD 2,000 in the previous fiscal year[44]. - The group has a currency risk exposure of SGD 156,000 from HKD fluctuations, with a 6% appreciation/depreciation against SGD as of March 31, 2020, compared to SGD 93,000 in the previous fiscal year[46]. - The group's cash and bank deposits in EUR amounted to SGD 478,000, with a potential impact of SGD 16,000 from a 4% appreciation/depreciation against SGD as of March 31, 2020[47]. - The group faces various risks, including poultry-related diseases and food contamination, which could impact operational performance[58][59]. - The group relies heavily on the Singapore market, and a significant decline in market share could adversely affect financial performance[62]. - The group has not established long-term contracts with major customers and suppliers, exposing it to credit and payment risks[68]. - The group’s financial risk management policies include monitoring currency risk, credit risk, and liquidity risk, with regular assessments conducted by management[75]. Corporate Governance - The company reported a commitment to high levels of corporate governance to protect shareholder interests and enhance corporate value[95]. - The board consists of three executive directors and three independent non-executive directors as of March 31, 2020[99]. - The company has adopted a set of guidelines for directors' securities trading, ensuring compliance with GEM listing rules[96]. - The chairman and CEO roles are not separated, with Mr. Ma serving in both capacities since 2009, which the board believes is in the best interest of the company[101]. - The company has complied with GEM listing rules regarding the appointment of independent non-executive directors, ensuring at least one has appropriate professional qualifications[102]. - The company’s financial manager, Ms. Yang, has over 10 years of experience in corporate financial audits and financial consulting[92]. - The board will review corporate governance practices at least annually to ensure ongoing compliance with governance codes[95]. - The company has established a robust mechanism for checks and balances through the board and independent non-executive directors[101]. - The company’s independent non-executive directors confirmed their independence according to GEM listing rules for the fiscal year 2020[102]. - The company has established a remuneration committee to review the remuneration policy and structure for all directors and senior management[162]. - The company has arranged for directors and senior management liability insurance covering costs and liabilities arising from legal actions due to corporate activities[169]. - The company has not granted any rights to directors for acquiring shares or debt securities during the fiscal year[185]. - The company’s board of directors includes both executive and independent non-executive members, ensuring governance and oversight[165]. - The company did not engage in any related party transactions that required disclosure under GEM listing rules for the fiscal year 2020[186]. - As of March 31, 2020, all directors confirmed compliance with the non-competition agreement established on August 15, 2018[189]. - The company has adopted a share option scheme on August 15, 2018, with a total number of shares involved not exceeding 50,000,000, which is 10% of the issued share capital[195]. - No share options were granted, exercised, expired, or cancelled during the fiscal year 2020[195]. Shareholder Communication - The board of directors is responsible for leading and monitoring the company, ensuring effective strategy implementation and financial performance oversight[106]. - The audit committee held four meetings during the fiscal year 2020, reviewing the annual financial statements and assessing the effectiveness of the risk management and internal control systems[113]. - The remuneration committee conducted two meetings in the fiscal year 2020 to review and recommend compensation policies for directors and senior management[119]. - The board meets quarterly, with additional meetings organized as necessary, ensuring timely communication and decision-making[109]. - The company has a dedicated company secretary to support the board and ensure compliance with governance policies[145]. - The company encourages shareholders to submit inquiries to the board through its Hong Kong office[143]. - The board of directors is dedicated to effective communication with shareholders, encouraging attendance at annual general meetings to address any inquiries[139]. Financial Position - Current ratio improved to approximately 2.2 times as of March 31, 2020, compared to 1.8 times as of March 31, 2019[26]. - Total borrowings decreased from approximately SGD 12.1 million as of March 31, 2019, to approximately SGD 10.7 million as of March 31, 2020[29]. - The company had cash and cash equivalents of approximately SGD 9 million as of March 31, 2020, compared to SGD 9.9 million as of March 31, 2019[27]. - The reserves available for distribution to shareholders as of March 31, 2020, were approximately SGD 5.6 million[163]. - As of March 31, 2020, the total issued share capital of the company was 500,000,000 ordinary shares with a par value of HKD 0.01 per share[161]. - The company’s major customers accounted for approximately 18% of total annual sales, with the largest customer contributing about 5%[181]. - The company’s major suppliers accounted for approximately 79% of total annual purchases, with the largest supplier contributing about 25%[181]. - The company’s financial performance, assets, and liabilities for the past four fiscal years are summarized in the annual report[157]. - The company’s property, plant, and equipment changes for the fiscal year 2020 are detailed in the consolidated financial statements[158].
永续农业(08609) - 2020 - 年度财报