Financial Performance - The company reported a revenue decrease of approximately 68.8% for the year, with a reported loss of about SGD 2,630,000, compared to a loss of SGD 10,582,000 in the previous year[12]. - Total revenue for the year was approximately SGD 2,831,000, a decrease of about 68.8% compared to SGD 9,071,000 in the previous year, primarily due to a 96.5% drop in automotive parts and vehicle sales[15]. - The net loss for the year was approximately SGD 2,630,000, significantly reduced from a loss of SGD 10,582,000 in the previous year, marking a decrease of 75.1%[21]. - Other income, gains, and losses increased from approximately SGD 603,000 to about SGD 731,000, driven by foreign exchange gains and increased rental income from investment properties[17]. - Selling and distribution expenses decreased from approximately SGD 505,000 to about SGD 482,000, primarily due to reduced travel costs[18]. - Administrative expenses were reduced from approximately SGD 4,622,000 to about SGD 3,864,000, mainly due to lower employee benefits, legal and professional fees, and travel expenses[19]. - The investment in Ocean Dragon Group was fully impaired, resulting in a loss of SGD 6,421,491, as the company could not obtain sufficient records to assess the investment's value[22]. - The company reported a total distributable reserve of approximately SGD 2,422,000 as of December 31, 2024, down from approximately SGD 3,512,000 in 2023[126]. Business Strategy and Operations - The gross profit increased by approximately 122.1%, despite the significant decline in automotive parts sales and the suspension of automotive sales and trading operations[12]. - The company has suspended its automotive business in Singapore due to low gross margins and will focus on supplying automotive parts and installation services to customers[13]. - The company plans to explore providing more pre-inspection center technologies and administrative services to customers[13]. - The company aims to strengthen its market position as a leading supplier in Singapore by enhancing operational efficiency and providing excellent customer service[14]. - The company recognizes the importance of resilience and adaptability in light of global economic uncertainties and will closely monitor market trends and consumer preferences[14]. - The company remains committed to achieving its strategic goals and aims to reduce risks while seizing opportunities for long-term success in the industry[14]. - The increase in gross profit was attributed to a shift towards higher-margin electronic accessory sales and a reduction in lower-margin automotive parts sales[16]. Management and Governance - The company has a strong management team with diverse backgrounds in finance, investment, and corporate governance, enhancing its strategic planning capabilities[54]. - The management team emphasizes the importance of financial management and corporate governance in driving the company's growth strategy[55]. - The company is focused on leveraging its experienced directors to enhance operational efficiency and explore new business opportunities[53]. - The board of directors includes members with significant experience in auditing, financial management, and corporate governance, ensuring robust oversight[54]. - The company is committed to maintaining high standards of corporate governance and transparency in its operations[55]. - The board composition includes a new chairman, Mr. Lu Yongde, appointed on July 22, 2024, following the removal of Ms. Ma Xiaoqiu as executive director on March 19, 2024[67]. - The company faced a temporary non-compliance issue with the minimum number of independent non-executive directors but rectified this by appointing Ms. Li Jiayao, restoring compliance with relevant listing rules[68]. - The company has established appropriate insurance coverage for legal actions against directors[70]. Risk Management - The company is facing challenges in obtaining complete and accurate financial records from Ocean Dragon Group, impacting the audit process and financial reporting[25]. - The audit committee supports the management's plan to file for the bankruptcy of the seller, Mr. Tsang, to obtain formal evidence needed to confirm the investment's termination[31]. - The company faces foreign exchange risk, with a potential impact of SGD 315,000 on after-tax losses if foreign currencies depreciate or appreciate by 10%[45]. - The board is responsible for overseeing the overall risk management and ensuring effective internal controls and financial performance monitoring[66]. - The company aims to identify and manage inherent risks in its operations, including environmental, social, and governance risks, to reduce or mitigate these risks[96]. - The risk register is updated at least annually to reflect new or removed risks, ensuring proactive risk management[98]. - No significant internal control deficiencies were found by the audit committee and board for the year ending December 31, 2024, indicating the effectiveness of the risk management system[102]. Corporate Social Responsibility and Sustainability - The company has committed to sustainable growth while considering environmental, social, and governance factors in its business development and management strategies[63]. - The environmental, social, and governance report outlines the company's commitment to sustainable development[177]. - The group integrates the United Nations Sustainable Development Goals (UNSDGs) into its overall ESG strategy, aiming to create long-term value for stakeholders while contributing to global sustainable development[198]. - The group emphasizes employee health and safety, implementing comprehensive policies and procedures to ensure workplace safety and risk management[199]. - The group is committed to promoting gender equality and eliminating discrimination, ensuring equal opportunities and diversity in the workplace[199]. - Regular reviews of ESG goals and performance are conducted to ensure compliance with relevant laws and regulations[189]. Shareholder Communication and Rights - The company is committed to maintaining effective communication with shareholders and timely disclosure of relevant information[107]. - The board can convene a special general meeting upon request from shareholders holding at least 10% of the paid-up capital[108]. - Shareholders have the right to make written inquiries to the company secretary regarding their rights and interests[110]. - The company has maintained effective communication channels with shareholders, including annual general meetings and regular updates on financial performance[111]. Board Committees and Meetings - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with defined terms of reference[86]. - The Audit Committee held 5 meetings during the year ending December 31, 2024, to review and approve the annual financial performance for the year ending December 31, 2023[88]. - The Nomination Committee conducted 2 meetings during the year ending December 31, 2024, to review board composition and propose recommendations for board changes[90]. - The Remuneration Committee held 2 meetings during the year ending December 31, 2024, to review the remuneration policies and performance evaluations of directors and senior management[94]. - The board held six meetings during the fiscal year ending December 31, 2024, to review and approve financial and operational performance[79].
万马控股(06928) - 2024 - 年度财报