Financial Performance - The overall revenue for the fiscal year 2022 increased compared to the fiscal year 2021, reflecting improved market conditions due to the easing of COVID-19 restrictions in Singapore and Malaysia [11]. - Revenue from the subsidiary in China, Majestic State International Limited, declined due to strict COVID-19 policies and a shift in focus from marketing services to enhancing technology and platform services [12]. - The company's revenue for the year ended June 30, 2022, was approximately SGD 48.2 million, a decrease of 11.4% from SGD 54.4 million for the year ended June 30, 2021 [39]. - The net profit attributable to the company's owners for the year ended June 30, 2022, was approximately SGD 1.1 million, down from SGD 7.7 million for the year ended June 30, 2021, primarily due to the impact of the COVID-19 pandemic in China [43]. - The gross profit for the year ended June 30, 2022, was SGD 15.6 million, compared to SGD 17.9 million for the previous year [39]. - The company recorded a loss of SGD 1.9 million in goodwill impairment for the year ended June 30, 2022 [39]. - Total profit for the year decreased by 79.8% to approximately SGD 1.9 million in FY2022 from SGD 9.4 million in FY2021, primarily due to losses recorded by the MSIL subsidiary [59]. - The total equity increased from approximately SGD 40.5 million in FY2021 to SGD 42.3 million in FY2022, indicating relative stability [60]. Operational Strategy - The company plans to strengthen its services and customer base in Singapore and Malaysia while exploring new business opportunities and seeking new software development service providers [13]. - The company aims to streamline operations and consolidate the business of Majestic State to gradually restore its revenue and profitability [13]. - The company expressed optimism for growth in the coming year, anticipating a robust development trajectory [13]. - The company is committed to cost reduction measures to improve overall performance and explore new market opportunities [13]. - The management team is focused on expanding the customer base into new industries and enhancing brand development [19]. - The company is focused on market expansion and strategic partnerships to enhance its operational capabilities and market presence [21]. - The company plans to continue expanding its services and diversifying its offerings to create higher value for customers and shareholders [34]. Revenue Breakdown - The online marketing services contributed to the total revenue, with search engine marketing services generating SGD 19.5 million (40.5% of total revenue), creative and technical services SGD 3.7 million (7.6%), social media marketing services SGD 1.3 million (2.8%), and online e-commerce platform operations SGD 23.7 million (49.1%) [45]. - The contribution of the MSIL group to the total revenue decreased from 57.1% in the previous year to 49.1% in the current year, reflecting a significant decline in its online e-commerce platform operations revenue [45]. - Search engine marketing services revenue slightly increased by 1.0% from SGD 19.3 million in FY2021 to SGD 19.5 million in FY2022 [46]. - Creative and technical services revenue surged by approximately 49.1% from SGD 2.5 million in FY2021 to SGD 3.7 million in FY2022, driven by special commission incentives for sales personnel in Singapore and Malaysia post-COVID-19 [46]. - Online e-commerce platform revenue from the MSIL group decreased by about 23.7% from SGD 31.1 million in FY2021 to SGD 23.7 million in FY2022 due to COVID-19 impacts in China [46]. Governance and Management - The company has established a series of business cooperation agreements with its wholly-owned subsidiary, which allows it to maintain effective control over its operations and enjoy economic benefits from its business and assets [21]. - The management team has over 15 years of experience in various sectors including tourism, life services, healthcare, and supply chain financing, indicating strong industry expertise [21]. - The company has a strong leadership team with significant experience in marketing and business management, with one member having approximately 20 years of experience in various industries [22]. - The financial director has over 12 years of experience in accounting and financial management, ensuring robust financial oversight [29]. - The digital marketing director has around 11 years of experience in managing online marketing activities, highlighting the company's focus on digital strategies [29]. - The board includes independent directors with extensive experience in finance, accounting, and legal matters, enhancing governance and oversight [25][26]. - The company is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value [79]. Employee and Stakeholder Relations - The company acknowledges the support from shareholders, employees, customers, and business partners in its growth journey [15]. - The group has a total of 125 employees as of June 30, 2022, down from 173 employees in the previous year, with total employee compensation amounting to approximately SGD 8.5 million, compared to SGD 7.4 million in the prior year [74]. - The company has a significant focus on employee development, conducting training to keep staff updated on industry trends and product information [157]. Risk Management and Compliance - The company emphasizes the importance of risk management and internal control systems, ensuring adequate resources and training for staff involved in financial reporting [102]. - The company has established a whistleblowing policy to allow employees and stakeholders to report concerns regarding misconduct, ensuring fair and independent investigations [105]. - The company is committed to maintaining the independence and objectivity of external auditors, reviewing their performance and considering changes when necessary [102]. - The board of directors is responsible for evaluating and ensuring the effectiveness of the company's risk management and internal control systems, which were assessed by an independent consultant during the fiscal year [128]. Shareholder Information - The company encourages shareholders to propose agenda items for discussion at shareholder meetings [136]. - The company has a communication policy to ensure shareholders receive timely information [143]. - The company has adopted a dividend policy on November 11, 2019, allowing for the declaration of dividends at the board's discretion [142]. - The company did not recommend any final dividend for the fiscal year ending June 30, 2022 [160]. Corporate Social Responsibility - The company has implemented various environmental measures to reduce energy consumption and waste [154]. - The company made donations of approximately SGD 300 in the fiscal year 2022, a decrease from SGD 3,100 in the previous fiscal year [167].
秀商时代控股(01849) - 2022 - 年度财报