Financial Performance - The group's revenue increased from approximately SGD 160.9 million in FY2020 to approximately SGD 246.4 million in FY2021, representing a growth of about 53.1%[9] - The increase in revenue was primarily driven by a rise in automobile sales, which increased by approximately SGD 83.4 million or 55.0%[16] - The number of new cars sold rose from 1,210 in FY2020 to 1,358 in FY2021, an increase of approximately 12.2%[14] - The average selling price of new cars increased from approximately SGD 107,000 in FY2020 to approximately SGD 130,000 in FY2021[17] - The group recorded a total profit and comprehensive income of approximately SGD 10.0 million in FY2021, compared to SGD 3.3 million in FY2020[9] - The group's gross profit increased from approximately SGD 18.4 million in FY2020 to approximately SGD 28.4 million in FY2021, with a stable gross margin of about 11.4% in FY2020 and 11.5% in FY2021[9] - The revenue from automobile financing services increased by approximately SGD 1.8 million or 30.0% to approximately SGD 7.8 million in FY2021[20] - The number of used cars sold increased from 501 in FY2020 to 865 in FY2021, representing a growth of approximately 72.7%[14] - The average selling price of used cars rose from approximately SGD 45,000 in FY2020 to approximately SGD 67,000 in FY2021[17] - Operating profit for FY2021 was approximately SGD 14.1 million, up from SGD 6.2 million in FY2020[43] - EBITDA for FY2021 was approximately SGD 17.2 million, compared to SGD 9.5 million in FY2020[43] - Net profit for FY2021 increased by approximately SGD 6.7 million or 203.0% to about SGD 10.0 million, with a net profit margin rising from approximately 2.0% in FY2020 to about 4.1%[39] Expenses and Costs - Sales and distribution expenses increased by approximately SGD 1.8 million or 45.0% from about SGD 4.0 million in FY2020 to about SGD 5.8 million in FY2021[35] - Other income decreased by approximately SGD 0.5 million or 45.5% from about SGD 1.1 million in FY2020 to about SGD 0.6 million in FY2021, primarily due to a reduction in government grants[31] - Employee benefits expenses for the year were approximately SGD 9.2 million, an increase from SGD 7.9 million in 2020, reflecting a rise in headcount from 79 to 100 employees[57] Financial Position and Ratios - As of December 31, 2021, the group's cash and bank balance was approximately SGD 6.6 million, a slight decrease from SGD 6.8 million in 2020[48] - The current ratio improved to 2.3 in 2021 from 2.1 in 2020, while the debt-to-equity ratio decreased to 75.3% from 100.4%[48] - Total borrowings as of December 31, 2021, were approximately SGD 44.3 million, down from SGD 49.0 million in 2020[50] - As of December 31, 2021, the company's distributable reserves amounted to approximately SGD 6.5 million, down from SGD 7.2 million in 2020[151] Corporate Governance - The company has adopted all principles of the Corporate Governance Code as per the Listing Rules Appendix 14, ensuring high standards of corporate governance[81] - The company has not established an internal audit function but has an effective internal control system in place, as confirmed by the audit committee and board[82] - The chairman and CEO roles are held by the same individual, which deviates from the Corporate Governance Code, but the board believes this arrangement benefits the company and shareholders[82] - The company is committed to maintaining high levels of corporate governance to protect shareholder interests and enhance corporate value[81] - The board of directors consists of seven members, with independent non-executive directors accounting for over one-third of the board[87] - The audit committee reviewed the group's interim and annual financial statements, confirming compliance with applicable accounting standards and listing rules[98] - The company has three independent non-executive directors, meeting the requirement that at least one possesses appropriate professional qualifications or financial management expertise[89] - The remuneration committee is responsible for establishing a formal and transparent procedure for determining the remuneration policy for directors and senior management[99] - The nomination committee is tasked with recommending candidates to fill board vacancies, considering factors such as diversity and potential conflicts of interest[101][102] - All directors participated in continuous professional development to ensure they remain informed about their responsibilities[92] - The company has adopted a standard code for securities trading by directors, ensuring compliance during the reporting period[83] - The board is responsible for overseeing the group's business affairs and overall performance, ensuring necessary financial and human resources are in place[85] Risk Management - The company has a risk management and internal control system that is reviewed at least annually to ensure its effectiveness[116] - The company has engaged an outsourced internal audit team to review the risk management and internal control systems, identifying several internal control weaknesses and risks[114] - The board is responsible for maintaining a sound and effective risk management and internal control system to protect shareholders' interests[113] - The company faces inventory risks if it fails to manage stock effectively, leading to potential write-offs or devaluations[135] - Financial risks related to foreign currency, interest rates, credit, and liquidity were highlighted as part of the company's operational challenges[137] Environmental, Social, and Governance (ESG) - The company emphasized the importance of environmental protection and sustainability, with efforts to reduce electricity consumption and water usage[142] - The company has established an Environmental, Social, and Governance (ESG) working group to manage and report on ESG-related matters[200] - The ESG report highlights the company's commitment to sustainable development as a core part of its business strategy[199] Shareholder Information - The company has adopted a dividend policy to distribute at least 15% of the distributable profits each fiscal year, subject to board discretion and shareholder approval[166] - No final dividend was recommended for the year ended December 31, 2021, consistent with the previous year[141] - The company confirmed compliance with non-competition agreements by major shareholders for the year ended December 31, 2021[120] - The company has no significant contracts with any controlling shareholders or their subsidiaries[163] - The company maintained sufficient public float as per the listing rules as of December 31, 2021[194] Future Plans and Challenges - The company anticipates ongoing operational challenges due to the impact of COVID-19 and government policies affecting car ownership in Singapore[10] - The group plans to allocate 45.8% of the net proceeds to expand its car rental financing business and 30.2% to enhance its used car sales business[62] - The group has delayed the establishment of its car workshop to 2022 due to the economic impact of the COVID-19 pandemic[63] Miscellaneous - The independent auditor, PwC, was paid HKD 1,205,000 for audit services for the year ended December 31, 2021[108] - The company has arranged appropriate directors and officers liability insurance for its directors and senior management[195] - The company will hold its annual general meeting on June 17, 2022, with a suspension of share transfer registration from June 14 to June 17, 2022[192] - The auditor, PwC, will be proposed for reappointment at the upcoming annual general meeting[197]
冠轈控股(01872) - 2021 - 年度财报