Financial Performance - Total revenue increased by approximately 13% from SGD 46.3 million in FY2020 to SGD 52.5 million in FY2021, primarily due to the acquisition of an existing egg distribution business in Singapore[8]. - Revenue from fresh eggs accounted for about 70% of total revenue in FY2021, up from 64% in FY2020, with sales rising from approximately SGD 29.5 million to SGD 37.0 million[17]. - Net profit after tax increased by approximately SGD 2.3 million to SGD 7.5 million in FY2021, mainly due to government subsidies received during the COVID-19 pandemic[8]. - Revenue from processed eggs decreased from approximately SGD 16.8 million in FY2020 to about SGD 15.5 million in FY2021, representing a decline of approximately 7.7%[18]. - Total sales costs increased by approximately SGD 9.4 million (or about 22%) from SGD 42.7 million in FY2020 to SGD 52.1 million in FY2021, primarily due to an expanded customer base[19]. - Gross profit before fair value adjustments increased from approximately SGD 13.0 million in FY2020 to SGD 13.7 million in FY2021, while gross profit after fair value adjustments decreased by approximately 89% from SGD 3.6 million to SGD 0.4 million[20]. - Other net losses changed from a net income of approximately SGD 288,000 in FY2020 to a net loss of approximately SGD 120,000 in FY2021, a change of approximately SGD 408,000, mainly due to foreign exchange losses[21]. - Revenue from agricultural products at fair value increased by approximately 43% from SGD 9.4 million in FY2020 to SGD 13.4 million in FY2021, driven by rising prices[23]. Expansion Plans - The first phase of the farm expansion project has commenced, with expectations to produce fresh eggs starting in Q2 2022[9]. - The second phase of the farm expansion includes the construction of three additional single-story chicken houses, planned to commence by the end of 2023[10]. - The company is also expanding its existing egg processing facilities to accommodate the increased egg production from the farm expansion[11]. - Bank borrowings increased to approximately SGD 11.4 million in FY2021 to fund the expansion plans[13]. - The first phase of the expansion plan is expected to be completed by the end of 2021, with production of fresh eggs starting in Q2 2022[51]. - The group has received government approval to commence construction, although there have been delays due to feedback from appointed professionals[51]. Risk Management - The ongoing economic challenges due to the pandemic continue to impact the egg market in Singapore, presenting ongoing challenges for the company[13]. - The company is exploring other related businesses in different regions to mitigate risks associated with its focus solely on the Singapore market[13]. - The group is exposed to various risks including poultry-related diseases, food contamination, and fluctuations in raw material costs[52][53][59]. - The management is committed to continuous risk management and will review the internal control and risk management systems annually[71]. - The group faces a currency risk with USD financial assets and liabilities, where a 5% appreciation/depreciation of USD against SGD would result in a change of SGD 30,000 in performance[45]. - The group has a currency risk with HKD, where a 6% appreciation/depreciation of HKD against SGD would result in a change of SGD 109,000 in performance[47]. - The group has a currency risk with EUR, where a 1% appreciation/depreciation of EUR against SGD would result in a change of SGD 6,000 in performance[48]. - The group has implemented a three-tier risk management approach to identify, assess, and manage significant risks[125]. - The board is responsible for overseeing the risk management and internal control systems, which are reviewed at least annually[125]. Corporate Governance - The company has adopted the principles and code provisions of the corporate governance code as per GEM Listing Rules Appendix 15, ensuring high standards of corporate governance to protect shareholder interests and enhance corporate value[87]. - The board consists of three executive directors and three independent non-executive directors, maintaining compliance with GEM Listing Rules regarding board composition[91]. - The independent directors bring over 30 years of experience in law and compliance, enhancing the company's governance and shareholder value[77][79]. - The company has established a robust internal control system and conducts annual reviews of its corporate governance practices to ensure ongoing compliance[87]. - The audit committee conducted four meetings and reviewed the annual financial statements, mid-term, and quarterly reports, finding the risk management and internal control systems effective[111]. - The company has established three board committees: audit, remuneration, and nomination, each with defined responsibilities[108]. - The company has confirmed compliance with the trading code of conduct for directors during the fiscal year 2021, adhering to the standards set forth in GEM Listing Rules[88]. - The company has committed to re-election of directors at the annual general meeting, ensuring compliance with its articles of association[99]. - The company has received written confirmations of independence from all independent non-executive directors, affirming their compliance with independence guidelines[94]. - The company has implemented appropriate insurance arrangements for potential legal actions against directors[102]. Shareholder Communication - The company is committed to maintaining effective communication with shareholders through regular reports and meetings[129]. - The company encourages shareholders to attend annual general meetings to express any inquiries to the board[129]. - The company has established appropriate procedures and internal controls for handling and disclosing inside information[128]. - The company reported reserves available for distribution to shareholders of approximately SGD 12.6 million as of March 31, 2021[153]. - The company did not recommend any final dividend for the fiscal year 2021, aiming to balance sufficient funding for business development and shareholder returns[144]. - The board adopted a dividend policy considering factors such as actual and expected financial performance, retained earnings, and cash flow[144]. Management and Leadership - The company has a strong leadership team with over 20 years of experience in management and the food industry, which is expected to drive business development and expansion[74]. - The financial manager has over 10 years of experience in financial auditing and consulting, which supports the company's financial oversight[84]. - The company emphasizes continuous professional development for all directors to ensure they remain informed and capable of contributing effectively[119]. - The Nomination Committee is tasked with identifying suitable candidates for board positions based on various diversity criteria[118]. - The board believes its current composition is suitable for the company's business needs and will review it periodically[117]. Financial Overview - As of March 31, 2021, the current ratio was approximately 1.9 times, down from 2.2 times on March 31, 2020[27]. - Total borrowings amounted to approximately SGD 13.0 million as of March 31, 2021, compared to SGD 10.7 million on March 31, 2020[31]. - The group had cash and cash equivalents of approximately SGD 10.9 million as of March 31, 2021, compared to SGD 9.0 million as of March 31, 2020[28]. - The company’s financial performance and asset and liability summary for the five fiscal years ending March 31, 2021, are detailed in the annual report[147]. - The consolidated financial statements were audited by PricewaterhouseCoopers LLP, which will be proposed for reappointment at the annual general meeting[184].
永续农业(08609) - 2021 - 年度财报