Financial Performance - The company's revenue for the year ended December 31, 2024, increased by approximately SGD 2,344,000 or about 10.0% to approximately SGD 25,808,000 compared to the previous year[10]. - Gross profit rose from approximately SGD 1,243,000 for the year ended December 31, 2023, to approximately SGD 2,745,000 for the year ended December 31, 2024, with a gross margin increase from 5.3% to 10.6%[10]. - The loss for the year ended December 31, 2024, was approximately SGD 412,000, a significant improvement from a loss of approximately SGD 5,114,000 for the year ended December 31, 2023[10]. - Revenue from truck transportation services increased by approximately SGD 3,235,000 to about SGD 24,571,000, representing a growth of 15.2% due to increased trade volume[16]. - The revenue breakdown for the year ended December 31, 2024, shows truck transportation services accounted for 95.2% of total revenue, while consolidation services accounted for 4.8%[15]. - The revenue from consolidation services decreased by 41.8% or approximately SGD 890,000, primarily due to reduced demand as ships began arriving more timely[18][19]. - Other income and gains decreased from approximately SGD 175,000 for the year ended December 31, 2023, to approximately SGD 73,000 for the year ended December 31, 2024, primarily due to reduced gains from the sale of properties, plants, and equipment[23]. - Administrative expenses decreased from approximately SGD 6,297,000 for the year ended December 31, 2023, to approximately SGD 2,965,000 for the year ended December 31, 2024[24]. - The group recorded a loss of approximately SGD 412,000 for the year ended December 31, 2024, a reduction of approximately SGD 4,702,000 compared to a loss of approximately SGD 5,114,000 for the year ended December 31, 2023[26]. Operational Insights - The company operates a large fleet capable of handling a significant volume of customer orders, positioning itself as a reliable service provider in the logistics sector[14]. - The management team is experienced and has been instrumental in the company's development as a trusted transportation and consolidation service provider[14]. - The company is closely monitoring global trade economics and continuously engaging with customers to understand their needs and the market situation[11]. - The expected GDP growth for Singapore in 2025 is projected to be between 1% and 3%, indicating potential challenges and variables for the company[11]. - Future plans include purchasing new vehicles to increase service capacity and enhancing IT systems[40]. - The company aims to maintain growth and expand market share in Singapore, despite economic slowdowns in the region[40]. Corporate Governance - The company has adopted corporate governance practices in line with GEM listing rules, with compliance noted for the fiscal year[51]. - The company has confirmed adherence to trading regulations for directors during the fiscal year ending December 31, 2024[53]. - The company has received a written confirmation from controlling shareholders regarding compliance with the non-competition agreement since the listing date on GEM[58]. - The board consists of four members, including one executive director and three independent non-executive directors, all of whom have attended 100% of board meetings[60]. - The independent non-executive directors have confirmed their independence in accordance with GEM listing rules[63]. - The company has implemented a training program for directors to ensure they understand their responsibilities under GEM listing rules and other regulations[64]. - The board is responsible for the overall corporate governance functions, including policy formulation and compliance monitoring[69]. - The initial term for all directors is set at three years, with a requirement for re-election at the annual general meeting[71]. - The company has purchased appropriate insurance to cover legal liabilities arising from directors' activities[72]. - The board will continue to review the effectiveness of the corporate governance structure and assess the need to separate the roles of chairman and CEO[62]. Audit and Committees - The Audit Committee held five meetings in the fiscal year ending December 31, 2024, with attendance rates of 100% for the chairman and one member[76]. - The Remuneration Committee conducted three meetings in the fiscal year ending December 31, 2024, with the chairman attending all four meetings[80][82]. - The Nomination Committee held four meetings in the fiscal year ending December 31, 2024, with the chairman attending all three meetings since appointment[85][86]. - The Audit Committee is responsible for reviewing the company's financial statements, including annual and quarterly reports, ensuring their completeness before submission to the board[77]. - The Remuneration Committee is tasked with reviewing and approving the remuneration proposals for senior management based on the company's objectives[83]. - The Nomination Committee evaluates the diversity of the board and recommends changes to enhance the company's corporate strategy[87]. - The Audit Committee's chairman possesses professional qualifications in accounting and financial management as per GEM listing rules[74]. - The Remuneration Committee ensures that no director participates in determining their own remuneration[83]. - The Nomination Committee is responsible for identifying qualified candidates for board positions and assessing the independence of non-executive directors[87]. - The Audit Committee's meetings are held at least four times a year, ensuring compliance with governance codes[76]. Environmental, Social, and Governance (ESG) Initiatives - The company aims to enhance its business operations and sustainability management, adhering to the GEM listing rules of the Hong Kong Stock Exchange[107]. - The environmental, social, and governance (ESG) report covers the fiscal year ending December 31, 2024, focusing on logistics services in Singapore, primarily truck transportation and consolidation services[108]. - The company has established a systematic management approach to assess and manage significant ESG issues, including risk assessments and stakeholder communications[113]. - The ESG committee is responsible for implementing the company's ESG initiatives and monitoring performance, with the board of directors ultimately accountable for the ESG report[109]. - The company actively engages with stakeholders, including government agencies, investors, employees, customers, suppliers, and the community, to improve ESG performance[116]. - The ESG report identifies ten key ESG issues based on stakeholder feedback and industry benchmarks, ensuring relevance and significance[119]. - The company has committed to maintaining compliance with all relevant ESG reporting guidelines and has provided a complete index for reference in the ESG report[107]. - The company emphasizes the importance of effective communication channels with stakeholders to address their concerns and enhance trust[114]. - The report outlines the company's goals and indicators for ESG performance, comparing them with actual results to ensure accountability[115]. - The company has implemented measures to ensure the effectiveness of its significant ESG initiatives and has established actionable goals[115]. Environmental Impact and Compliance - The company aims to reduce diesel consumption by 2.0% by 2029, with incremental reductions of 1%, 1.4%, 1.6%, and 1.8% in the preceding years[136]. - The company targets a 2.3% reduction in electricity consumption by 2029, with annual increases from 1.5% to 2.1% over the next five years[136]. - Water consumption reduction is also set at 2.3% by 2029, with a gradual increase from 1.5% to 2.1% in the following years[136]. - The company has implemented operational measures to minimize greenhouse gas emissions, focusing on logistics operations and energy consumption from purchased electricity[125]. - The company has maintained compliance with significant environmental laws and regulations, including the Environmental Protection Management Act in Singapore[128]. - The company encourages employees to adopt water-saving habits and has no issues with water sourcing as it is provided by the government[133]. - The company has adopted digital office practices to minimize paper usage and has implemented regular vehicle maintenance to monitor fuel consumption[126]. - The company is committed to creating a comfortable and green working environment to enhance employee efficiency[135]. - The company has established electronic workflows to reduce printing and copying, promoting double-sided printing in the office[129]. - The company evaluates climate change impacts through physical and transition risk assessments, considering both direct asset damage and supply chain disruptions[142]. Employee Welfare and Safety - The employee turnover rate for the year was reported at 6.9%, which is considered healthy and stable by the Environmental, Social, and Governance Committee[155]. - The company has established an ISO 14001 certified environmental management system to meet customer expectations for environmental friendliness[148]. - The workforce consisted of 121 full-time employees as of December 31, 2024, down from 130 in 2023, reflecting a decrease of approximately 6.9%[155]. - The company plans to negotiate cost-sharing arrangements with customers in response to potential fuel cost increases due to environmental taxes[148]. - The company is committed to monitoring and updating its action plans regarding climate change impacts regularly[147]. - The total power consumption was reported at 56,228 kWh in 2024, an increase from 44,643 kWh in 2023, representing a growth of approximately 26%[150]. - The company aims to maintain compliance with relevant laws and regulations regarding employee rights and welfare, ensuring a fair and equitable work environment[160]. - The company reported an injury rate of 0.0076% for the fiscal year 2023, an increase from 0.0055% in fiscal year 2022, but a decrease is expected in fiscal year 2024 to 0.0057%[168]. - The total number of lost workdays due to injuries was 28 in fiscal year 2023, compared to 25 in fiscal year 2022 and an expected 26 in fiscal year 2024[168]. - The company has not experienced any work-related fatalities in the past three years[166]. Risk Management and Compliance - A comprehensive anti-corruption training program aims for 100% coverage of employees within four years[178]. - The company has established a strict supplier selection process that considers environmental and social risk controls[186]. - There have been no reported incidents of bribery, extortion, fraud, or money laundering in the past three years[183]. - The company maintains a risk management system to identify and mitigate risks in the workplace[165]. - The company has implemented various COVID-19 safety measures, including regular disinfection and social distancing protocols[169]. - The company collaborates with four key suppliers in the port, diesel, tire, and land leasing sectors, crucial for its operations[185]. - The company provides at least 6 hours of training for each driver during the reporting period, focusing on health and safety regulations[173]. Logistics and Service Quality - The company has a large logistics fleet consisting of tractors, trailers, forklifts, and light vehicles to provide efficient transportation and storage services[192]. - The company has invested in various technological systems to enhance workflow timeliness and accuracy, reducing employee workload[192]. - The company maintains close relationships with suppliers to ensure the provision of quality goods and services, contributing to strong business performance[193]. - The company implements a quality control policy to provide reliable and flexible services, meeting changing customer and market demands[194]. - Regular vehicle inspections are conducted to minimize vehicle failures and road accidents, ensuring safety for all road users[199]. - All drivers are required to participate in safety courses to ensure safe operation of heavy vehicles[200]. - The company has established quality and safety inspection programs to regulate order processing and address unresolved issues with customers and suppliers[197]. - The company actively communicates with customers to understand their needs and provide timely responses during service delivery[196]. - The company utilizes an operational system that automatically matches key operational data with partners' databases daily[192]. - The company does not face risks related to product or service recalls, and any delivery issues are promptly rescheduled with customer approval[200].
春能控股(08430) - 2024 - 年度财报