Financial Performance - The group's revenue increased from approximately SGD 180.9 million in FY2023 to approximately SGD 190.9 million in FY2024, representing a growth of about 5.5%[9] - The group recorded a loss of approximately SGD 3.1 million in FY2024, compared to a profit of approximately SGD 7.7 million in FY2023, primarily due to a decrease in other income and an increase in general and administrative expenses[9] - The overall gross profit margin decreased from approximately 12.4% in FY2023 to approximately 11.2% in FY2024[9] - The total gross profit remained stable at approximately 22.4 million SGD in FY2023 and about 21.3 million SGD in FY2024, with the overall gross margin decreasing from approximately 12.4% in FY2023 to about 11.2% in FY2024[22] - The gross profit from vehicle sales decreased by approximately 2.2 million SGD or 15.2% from about 14.5 million SGD in FY2023 to about 12.3 million SGD in FY2024, with the gross margin for vehicle sales dropping from approximately 8.6% to about 7.0%[24] Sales and Market Trends - The number of new cars sold increased from 770 in FY2023 to 905 in FY2024, while the average selling price decreased from approximately SGD 164,000 to SGD 147,000[16] - The number of used cars sold increased from 360 in FY2023 to 565 in FY2024, with the average selling price decreasing from approximately SGD 116,000 to SGD 78,000[16] - Revenue from automotive financing services increased by approximately SGD 0.8 million or 12.7% to approximately SGD 7.1 million in FY2024, driven by increased financing arrangements due to higher car sales[17] - Revenue from car leasing rose by approximately SGD 0.4 million or 7.4% to approximately SGD 5.8 million in FY2024, attributed to an increase in leasing higher-value cars to corporate clients[19] Expenses and Cost Management - The group's cost of sales increased by approximately 11.2 million SGD or 7.1% from about 158.4 million SGD in FY2023 to about 169.6 million SGD in FY2024, primarily due to increased costs associated with sold vehicles[21] - The group's general and administrative expenses increased by approximately 7.9 million SGD or 76.7% from about 10.3 million SGD in FY2023 to about 18.2 million SGD in FY2024[32] Strategic Plans and Market Position - The group plans to maintain a cautious approach in the upcoming fiscal year, focusing on cost control and enhancing customer service amid economic uncertainties[10] - The group aims to strengthen its position in the Singapore automotive sales market and increase market share[10] Cash Flow and Capital Management - As of December 31, 2024, the group's cash and bank balances were approximately 11.2 million SGD, down from about 13.0 million SGD in 2023, with a current ratio of 2.8[38] - The group's borrowings decreased to approximately 55.3 million SGD in FY2024 from about 71.6 million SGD in FY2023, with no significant capital commitments as of December 31, 2024[40][43] - Capital expenditures for FY2024 were approximately 4.9 million SGD, down from about 11.8 million SGD in FY2023, primarily funded through operating cash flows and bank borrowings[42] Employee and Governance - The company employed a total of 108 employees as of December 31, 2024, compared to 80 employees in 2023, with employee benefits expenses amounting to approximately 11.5 million SGD, up from 9.4 million SGD in 2023[47] - The company has adopted the corporate governance code as per the listing rules, ensuring high standards of accountability and shareholder protection[69] - The board of directors is responsible for overseeing the company's business affairs and overall performance, ensuring necessary financial and human resources are in place to achieve its goals[72] Risk Management and Compliance - The company has a risk management and internal control system that is reviewed at least annually to ensure effectiveness and protect shareholder interests[99] - The company has established a whistleblowing policy to manage complaints related to corruption or fraud[104] - The company has implemented a code of conduct and ethical guidelines that all employees must adhere to[105] Environmental, Social, and Governance (ESG) Initiatives - The group is committed to environmental sustainability, focusing on resource reuse and reduction of electricity and water consumption[123] - The company has established an Environmental, Social, and Governance (ESG) working group to collect and assess relevant data, reporting at least annually to the board[176] - The company aims to gradually reduce greenhouse gas emissions density to approximately 2.23 tons of CO2 equivalent per employee over the next five years, although current progress has not yet been achieved[193] Shareholder Information and Equity - The group does not recommend the payment of a final dividend for the year ending December 31, 2024 (2023: none)[122] - The company has adopted a general annual dividend policy to distribute at least 15% of the distributable profits for any fiscal year as dividends[143] - The share options plan adopted on February 1, 2019, aims to incentivize and retain qualified personnel[154]
冠轈控股(01872) - 2024 - 年度财报