Financial Performance - The company reported a significant increase in revenue, achieving a total of $150 million for the fiscal year, representing a 25% growth compared to the previous year[2]. - The Group's total revenue decreased by approximately S$4.3 million or 6.2% from approximately S$69.6 million in FY2020 to approximately S$65.3 million in FY2021[16]. - The Group's total gross profit decreased by approximately S$1.0 million or 5.3% from approximately S$18.7 million in FY2020 to approximately S$17.7 million in FY2021, while the gross profit margin improved from 26.9% to 27.1%[16]. - Profit for the year decreased by approximately S$3.4 million or 49.9% from approximately S$6.8 million for the year ended 31 December 2020 to approximately S$3.4 million for the year ended 31 December 2021[95]. - The gross profit margin improved to 40%, up from 35% in the previous year, indicating better cost management[2]. Market Outlook and Strategy - The company provided a positive outlook for the next fiscal year, projecting revenue growth of 20% to $180 million[2]. - New product launches are expected to contribute an additional $20 million in revenue, with a focus on innovative technology solutions[2]. - The company is expanding its market presence in Southeast Asia, targeting a 15% market share by the end of the next fiscal year[2]. - The Group expects strong demand for snack products, particularly those with less sugar, as health awareness among consumers increases[18]. - The Group will adopt a cautious approach in managing its business to maintain sustainable growth and create long-term shareholder value[18]. Cost Management and Efficiency - Research and development expenses increased by 10% to $5 million, reflecting the company's commitment to innovation[2]. - The company aims to reduce operational costs by 5% through efficiency improvements in the supply chain[2]. - Selling and distribution expenses increased by approximately S$0.5 million or 17.6% from approximately S$3.0 million for the year ended 31 December 2020 to approximately S$3.5 million for the year ended 31 December 2021[92]. - Administrative expenses increased by approximately S$1.6 million or 20.9% from approximately S$7.5 million for the year ended 31 December 2020 to approximately S$9.0 million for the year ended 31 December 2021[92]. Shareholder Returns - The Directors resolved not to recommend any dividend for FY2021 despite the Group being profitable[18]. - The Board resolved not to recommend any final dividend for the year ended December 31, 2021, despite the Group being profitable[116]. - The Group's dividend policy, adopted on 20 December 2018, aims to allow shareholders to participate in profits while retaining reserves for future growth[175]. Operational Insights - The Group's principal activity is investment holding, primarily engaged in the production, packaging, and sale of nuts and chips, with a track record of over 50 years[167]. - The core products include roasted nuts, baked nuts, potato chips, and cassava chips, distributed to over 10 countries including Singapore, Malaysia, and the UK[167]. - The Group's materials cost accounted for over 80% of its cost of sales, primarily consisting of various nuts and beans[188]. - The Group's business experiences seasonal fluctuations, with higher revenue typically recorded during holiday seasons[187]. Management and Governance - The management team includes family members, indicating a closely-knit leadership structure[132]. - The board includes independent non-executive directors, enhancing governance and oversight[137]. - The company has a strong emphasis on risk management, with dedicated committees in place[137]. - The finance team led by Mr. Terence Loo will provide advice to the Board and coordinate with sales and procurement teams to manage financial and operational risks[152]. Economic Context - Singapore's GDP growth for 2022 is forecasted to be between 3.0% and 5.0%[18]. - The Singapore economy grew by 6.1% year-on-year in Q4 2021, moderating from 7.5% growth in Q3 2021[76]. - For the entire year of 2021, Singapore's economy expanded by 7.6%, rebounding from a 4.1% contraction in 2020[76]. - The global snack food market, including nuts and chips, is expected to grow at approximately 5.5% annually over the next five years[81].
TS WONDERS(01767) - 2021 - 年度财报