Financial Performance - The company achieved a revenue of approximately SGD 37.7 million for the fiscal year ending December 31, 2024, reflecting a slight decline compared to the previous year[12]. - Gross profit remained stable at around SGD 12.9 million, indicating effective cost management and optimized production processes[13]. - The company recorded a profit attributable to owners of approximately SGD 3.2 million, with adjusted profit (excluding non-recurring items) at about SGD 5.8 million[13]. - The company's revenue for the fiscal year ending December 31, 2024, is approximately SGD 37.7 million, a decrease of about SGD 1.1 million or 2.7% from the previous year[26]. - The company reported a profit of approximately SGD 3.2 million for the fiscal year ending December 31, 2024, down from SGD 4.4 million in the previous year[32]. - The adjusted profit for the year (non-IFRS measure) was approximately 5.797 million SGD in 2024, down from 7.050 million SGD in 2023, reflecting a decrease of about 17.7%[33]. - The adjusted profit margin (non-IFRS measure) for 2024 was 15.4%, compared to 18.2% in 2023, indicating a decline of 1.8 percentage points[34]. Operational Highlights - The semiconductor division contributed approximately 89.2% of total revenue, supported by strong demand for precision engineering components[14]. - The company has a backlog of orders amounting to approximately SGD 19.5 million, indicating strong short-term demand[17]. - Precision machining services generated an increase in revenue of approximately SGD 1.5 million, driven by the recovery of the global aviation industry post-COVID-19[21]. - Precision welding services saw a revenue decrease of approximately SGD 2.6 million due to clients reducing their existing inventory[21]. - The company has an accumulated order backlog of approximately SGD 19.5 million as of December 31, 2024, down from SGD 24.9 million a year earlier[22]. - The company plans to enhance its technical capabilities and improve quality assurance processes to capture more market share in the long term[17]. - The company plans to expand its capacity and workforce to meet anticipated market demand growth, particularly in the aviation sector[24]. - The company aims to diversify its revenue sources by actively exploring opportunities in the aerospace, data storage, and energy sectors[17]. - The company aims to diversify its business into data storage, oil, and gas industries, seeking to establish partnerships with existing clients and explore new customer opportunities[24]. Financial Position - The company maintains a strong financial position with cash and bank balances of SGD 18.0 million as of December 31, 2024[14]. - As of December 31, 2024, the company had cash and bank balances of approximately 18.0 million SGD, an increase from 9.2 million SGD as of December 31, 2023[35]. - The total borrowings as of December 31, 2024, were approximately 2.5 million SGD, with an interest rate ranging from 3.44% to 7%[35]. - The debt-to-equity ratio as of December 31, 2024, was 6.4%, a significant decrease from 15.7% as of December 31, 2023[37]. - Capital expenditures for the year ended December 31, 2024, amounted to approximately 3.2 million SGD, up from 1.6 million SGD in the previous year, representing a 100% increase[38]. Corporate Governance - The company has adopted the corporate governance code as per GEM Listing Rules Appendix C1, ensuring high standards of corporate governance[82]. - The board consists of three executive directors, one non-executive director, and three independent non-executive directors, ensuring compliance with GEM Listing Rules[88]. - The company is committed to maintaining high ethical standards and transparency in its operations to maximize shareholder returns[84]. - The board has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee specific areas of governance[85]. - The company will continue to review and improve its corporate governance practices to ensure compliance with the corporate governance code[83]. - The board regularly evaluates the implementation of the corporate governance system to enhance transparency and accountability[82]. - The company has arranged appropriate liability insurance for its directors and senior management to cover responsibilities arising from corporate activities[87]. Risk Management - The company has established a risk management and internal control policy to maintain high standards of corporate governance[131]. - The audit committee is responsible for reviewing the annual and interim performance reports and the financial and accounting policies[132]. - The board confirmed the effectiveness of the risk management and internal control systems for the year ending December 31, 2024[130]. - The company conducts an annual review of its risk management and internal control systems, reporting findings to the audit committee and the board[135]. - The company has set up appropriate arrangements for employees to confidentially raise concerns regarding financial reporting and internal controls[126]. Shareholder Relations - The company emphasizes the importance of timely and non-selective information disclosure to enable informed investment decisions by shareholders and potential investors[140]. - The company has implemented a shareholder communication policy to enhance relationships with shareholders and stakeholders through various communication channels[141]. - The company has not held any shareholder meetings since its listing on July 2, 2024[139]. Employee Management - Employee costs for the year ending December 31, 2024, are approximately SGD 9.6 million, an increase from SGD 8.8 million for the previous year[52]. - The company is actively improving employee compensation and benefits to attract and retain capable staff[52]. - The company recognizes employees as valuable assets and offers competitive compensation to attract and motivate them[196]. - The company aims to maintain a proper balance of diverse perspectives related to business growth and ensure structured recruitment practices at all levels, with approximately 22% of its 179 full-time employees being female as of December 31, 2024[94]. Board Composition and Appointments - Mr. Su Zhenyu was appointed as Executive Director on March 28, 2025, and is the General Manager of Singapore Precision Welding Pte. Ltd., managing semiconductor equipment spare parts production[61]. - Mr. Cheng Zhangjin was appointed as a director on December 7, 2021, and has been responsible for formulating overall business strategies and corporate development[64]. - The company has appointed PricewaterhouseCoopers LLC as the external auditor, with audit fees totaling 270,000 and non-audit fees of 307,000 for the year ending December 31, 2024[137]. - The company has engaged independent consultants to conduct an annual comprehensive review of its risk management and internal control systems[133]. Major Shareholders and Stock Options - Major shareholders include SGP BVI with 58,647,335 shares (39.10%), Baccini with 24,748,479 shares (16.50%), and Angelling with 12,299,998 shares (8.20%) as of December 31, 2024[193]. - The total number of shares held by directors and senior management amounts to 84,427,814, representing 56.29% of the total issued shares[189]. - The company has a stock option plan effective for 10 years from the date of adoption, with no further options to be granted after this period[187]. - The stock option plan includes performance-based vesting conditions rather than time-based[186]. - The company has not disclosed any new stock options or unexercised options as of December 31, 2024[188].
元续科技(08637) - 2024 - 年度财报