Financial Performance - The total revenue for the fiscal year 2021 was approximately SGD 16.1 million, an increase of about 55.4% compared to SGD 10.3 million in the fiscal year 2020[9]. - Gross profit rose approximately 246.2% to about SGD 5.0 million in fiscal year 2021, up from SGD 1.4 million in fiscal year 2020[15]. - The net loss attributable to shareholders for fiscal year 2021 was approximately SGD 3.1 million, compared to a net loss of SGD 2.6 million in fiscal year 2020[9]. - Revenue from the manufacturing segment rose by 53.3% to approximately SGD 15.9 million, driven by sustained growth in Singapore's manufacturing sector[20]. - The online business segment generated revenue of approximately SGD 0.2 million in fiscal year 2021, a significant increase from SGD 1,000 in fiscal year 2020, attributed to the first full year of revenue from the mobile game launched in December 2020[21]. - Administrative expenses increased by approximately SGD 2.1 million or 62.0% to SGD 5.6 million in fiscal year 2021, primarily due to professional fees related to the resumption of trading and new employee costs in the online mobile gaming business[24]. - Research and development expenses for mobile games were approximately SGD 1.7 million in fiscal year 2021, up from SGD 0.6 million in fiscal year 2020, reflecting the first full operational year of the mobile gaming business[25]. - The group recorded a net loss of approximately SGD 3.1 million in fiscal year 2021, compared to a net loss of SGD 2.6 million in fiscal year 2020[26]. - As of December 31, 2021, the group's total equity attributable to owners was approximately SGD 32.7 million, down from SGD 35.7 million in fiscal year 2020[28]. Business Strategy and Development - The manufacturing business experienced strong growth driven by continued global demand for semiconductors, with the manufacturing sector in Singapore expanding by 13.2% in 2021[16]. - The company plans to continue developing and optimizing its mobile games to enhance its online business in 2022[10]. - The company aims to diversify its revenue sources to mitigate challenges faced in the manufacturing sector[10]. - The company will focus on upgrading machinery and utilizing robotics to improve production capacity and efficiency[10]. - The company will continue to explore other business opportunities to enhance performance amidst challenges in the manufacturing sector[10]. Corporate Governance - The board of directors is responsible for the overall management and strategic direction of the company, ensuring compliance with corporate governance standards[64]. - The company has adopted all provisions of the Corporate Governance Code as per the listing rules, effective from January 1, 2022[60]. - The company has a strong focus on maintaining high levels of corporate governance to protect shareholder interests and enhance corporate value[60]. - The board includes two executive directors and three independent non-executive directors, ensuring a diverse governance structure[64]. - The company has a dedicated audit committee, remuneration committee, and nomination committee to oversee various aspects of governance and management[60]. - The company emphasizes the importance of internal controls and risk management systems in its governance framework[64]. - The board structure and composition are regularly assessed to maintain diversity and effectiveness[77]. - The company has adopted a standard code of conduct for securities trading, ensuring all directors complied fully during the year[72]. Risk Management - The group faced significant risks in its manufacturing business, including reliance on major customers and currency fluctuations[111]. - The online business is exposed to competition from other entertainment forms and potential payment delays from settlement agents[111]. - The board is responsible for maintaining an effective risk management and internal control system, with a continuous risk assessment method adopted to identify and evaluate inherent risks[87]. - The internal audit function is performed by an outsourced team, which reviews the effectiveness of the risk management and internal control systems at least once a year[89]. Environmental, Social, and Governance (ESG) - The group has established an environmental management system certified to ISO 14001:2015 to enhance energy efficiency[103]. - The company emphasizes the need to balance business growth with sustainable development, integrating sustainability parameters into its business model[172]. - The board established an Environmental, Social, and Governance (ESG) committee to oversee the integration of ESG matters into the company's strategy and ensure compliance with regulatory requirements[171]. - The report provides an overview of the group's environmental and social management policies and performance for the year[167]. - The company has implemented strict measures to ensure compliance with environmental and social standards among its suppliers[188]. Employee Relations and Community Engagement - The company has maintained good relationships with employees, offering competitive salaries and bonuses[145]. - The company is committed to community contributions and plans to continue fulfilling corporate responsibilities to support disadvantaged groups in society[193]. - The company has achieved BizSAFE Level 4 certification from the Workplace Safety and Health Council in Singapore, indicating a commitment to workplace safety and health[196]. - During the reporting period, the company recorded zero work-related fatalities, zero work injuries, and zero lost workdays due to injuries, aiming to maintain a record of zero incidents[197]. Shareholder Communication and Compliance - The company ensures effective and timely communication with shareholders through its website, where all corporate communications are published[94]. - The company has not disclosed any significant non-compliance with relevant laws and regulations during the fiscal year 2021[102]. - The company has not identified any cases of corruption or violations of anti-bribery, anti-extortion, or anti-money laundering laws during the year[192].
FSM HOLDINGS(01721) - 2021 - 年度财报