Company Listing and Financial Overview - Raffles Interior Limited successfully listed on the Hong Kong Stock Exchange on May 7, 2020, issuing 250 million shares and raising approximately HKD 70 million net of listing expenses[8]. - For the fiscal year ended December 31, 2020, the group's revenue decreased by 16.3% to approximately SGD 64.2 million from SGD 76.7 million for the year ended December 31, 2019[10]. - The group reported a gross loss of approximately SGD 2.6 million, compared to a gross profit of SGD 16.2 million in the previous year, reflecting a significant decline in gross margin from 21.2% to -4.0%[13]. - The net loss for the year was SGD 15.9 million, a decrease of SGD 20.6 million compared to a net profit of SGD 4.6 million in 2019[13]. - The group's total revenue decreased by approximately 16.2% from about SGD 76.7 million for the year ended December 31, 2019, to about SGD 64.2 million for the year ended December 31, 2020[17]. Impact of COVID-19 - Due to COVID-19, all on-site engineering work was halted from April 7 to June 1, 2020, impacting the construction industry in Singapore[8]. - The group faced operational disruptions due to COVID-19, with all on-site works halted during the circuit breaker period from April 7 to June 1, 2020[10]. - The company expressed confidence in overcoming challenges posed by COVID-19 through consistent management and teamwork[8]. - The construction industry in Singapore is expected to grow to between SGD 23 billion and SGD 28 billion in 2021, as it recovers from the impacts of COVID-19[10]. Revenue Sources and Contributions - The group had 19 nominal contracts valued at approximately SGD 66.3 million as of December 31, 2020, with SGD 25.5 million recognized as revenue[10]. - The group’s revenue contributions from property owners/tenants accounted for 67.4% of total revenue, down from 81.0% in 2019[15]. - Revenue from construction contractors represented 17.0% of total revenue, an increase from 9.6% in the previous year[15]. Financial Performance and Expenses - The cost of sales increased by approximately 10.5% from about SGD 60.4 million for the year ended December 31, 2019, to about SGD 66.8 million for the year ended December 31, 2020[17]. - Other income for the year ended December 31, 2020, was approximately SGD 2.3 million, down from about SGD 21,000 for the year ended December 31, 2019, primarily due to additional subsidies provided by the Singapore government[17]. - Administrative expenses increased to approximately SGD 11.0 million for the year ended December 31, 2020, from SGD 9.8 million for the year ended December 31, 2019[19]. - The financing costs for the year ended December 31, 2020, were approximately SGD 403,000, slightly up from SGD 399,000 for the year ended December 31, 2019[19]. Share Issuance and Utilization of Proceeds - The net proceeds from the share issuance amounted to approximately HKD 69.9 million (around SGD 13.0 million), with 2.9 million SGD already utilized by December 31, 2020[34]. - The allocation of the net proceeds includes SGD 4.2 million (32.3%) for expanding service offerings, SGD 2.2 million (16.9%) for property expansion, and SGD 4.7 million (36.2%) for general working capital[35]. Corporate Governance and Board Structure - The company has established a corporate governance framework based on the Hong Kong Stock Exchange's Listing Rules, enhancing the board's ability to oversee business conduct and affairs[62]. - The company has adhered to all provisions of the corporate governance code since its listing on May 7, 2020, until December 31, 2020[63]. - The company is led by an effective board of directors responsible for overseeing business, strategic decisions, and performance[68]. - The company has appointed three independent non-executive directors, exceeding the requirement of one-third of the board members[71]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with clearly defined powers and responsibilities[76]. Risk Management and Internal Controls - The board has reviewed the effectiveness of the group's risk management and internal control systems and deemed them effective and adequate as of December 31, 2020[102]. - The company has established a risk management policy to identify, assess, and manage key business risks, with departments responsible for quarterly risk assessments[100]. - The company has no internal audit function and has appointed Baker Tilly Consultancy (Singapore) Pte. Ltd. to perform internal audit functions[102]. Shareholder Relations and Dividends - The company maintains effective communication with shareholders, particularly through annual general meetings and its corporate website[117]. - The company has a dividend policy that aims for a payout ratio of not less than 35% of retained earnings before declaration, subject to operational needs and financial conditions[119]. - The board does not recommend a final dividend for the year ended December 31, 2020, consistent with the previous year where no dividend was declared[179]. Employee and Supplier Relations - The company maintained good relationships with employees, providing salaries, bonuses, and other allowances based on qualifications and tenure[166]. - The company has established stable business relationships with major clients, enhancing market visibility and attracting potential business opportunities[168]. - The largest supplier accounted for approximately 15.0% of total procurement, while the top five suppliers accounted for about 45.9% of total procurement for the year ended December 31, 2020[165]. ESG Initiatives - The company has established an ESG task force to identify and assess ESG risks and ensure effective internal controls[193]. - The ESG report outlines key policies, measures, and performance indicators related to environmental, social, and governance issues[190]. - The board has confirmed the integrity of the ESG report and its coverage of all significant issues[194].
RAFFLESINTERIOR(01376) - 2021 - 年度财报