Financial Performance - The company recorded revenue of approximately SGD 18,542,000 for the year ended December 31, 2021, representing a 190.5% increase from SGD 6,383,000 in 2020[12]. - Gross profit for the year was approximately SGD 2,317,000, with a gross margin of about 12.5%, compared to SGD 672,000 and 10.5% in 2020[16]. - The company achieved a profit of approximately SGD 246,000 for the year, a significant turnaround from a loss of SGD 3,427,000 in 2020[18]. - The company reported a pre-tax profit of approximately SGD 334,000 for the year, compared to a pre-tax loss of SGD 3,541,000 in 2020[17]. - Total revenue for the year ended December 31, 2021, was SGD 18,541,810, a significant increase from SGD 6,383,204 in 2020, representing a growth of approximately 190%[166]. - Gross profit for 2021 was SGD 2,316,884, compared to SGD 672,370 in 2020, indicating a gross margin improvement[166]. - The net profit for the year was SGD 245,758, a turnaround from a net loss of SGD 3,427,279 in the previous year[166]. - Basic and diluted earnings per share for 2021 were SGD 0.131, compared to a loss per share of SGD 2.678 in 2020[166]. Revenue Sources - Revenue from sales of signage, billboards, variable message signs, bus stops, and aluminum fences in Singapore increased to approximately SGD 7,939,000 in 2021 from SGD 6,383,000 in 2020, representing an increase of about SGD 1,556,000[21]. - Revenue from the renovation and refurbishment services for commercial and residential properties amounted to approximately SGD 10,603,000 for the year ended December 31, 2021[21]. - The group reported revenue from service contracts of approximately SGD 10,603,011 for the year ended December 31, 2021[152]. Expenses and Cost Management - Selling and administrative expenses decreased by approximately 40.6% to SGD 2,447,000, down from SGD 4,122,000 in 2020[17]. - Total employee costs, including director remuneration, were approximately SGD 2,838,000 in 2021, down from SGD 3,344,000 in 2020[30]. - Other income for 2021 was SGD 539,501, down from SGD 760,301 in 2020, showing a decline of about 29%[166]. - The company reported a financing cost of SGD 29,215, significantly lower than SGD 56,521 in 2020, indicating improved financial management[166]. - The expected credit loss provision for the year was SGD 211,739, up from SGD 63,497 in 2020, suggesting increased caution in credit risk management[166]. - The company has maintained a focus on improving operational efficiency and reducing costs, as evidenced by the significant reduction in sales and administrative expenses[166]. Cash Flow and Financial Position - The company’s cash and cash equivalents increased by approximately SGD 357,000, totaling about SGD 3,617,000 as of December 31, 2021[20]. - Cash and cash equivalents at year-end were SGD 3,616,810, up from SGD 3,260,267 in 2020, indicating a 10.9% increase[177]. - Operating cash flow before changes in working capital was SGD 713,693 in 2021, a significant recovery from a negative SGD 2,471,512 in 2020[175]. - Total assets increased to SGD 17,094,678 in 2021 from SGD 15,695,621 in 2020, representing an increase of 8.9%[168]. - Current assets rose to SGD 13,074,231 in 2021, up from SGD 11,104,318 in 2020, marking a growth of 17.8%[168]. - Net current assets improved to SGD 11,135,493 in 2021, compared to SGD 8,332,248 in 2020, reflecting a 33.6% increase[168]. - Total equity increased to SGD 12,869,685 in 2021 from SGD 10,263,621 in 2020, a rise of 25.5%[169]. Borrowings and Financial Obligations - The total borrowings amounted to SGD 2,659,000, with a debt-to-asset ratio of approximately 15.5%[20]. - As of December 31, 2021, the company's borrowings included property loans of approximately SGD 2,608,000, down from SGD 2,967,000 in 2020[93]. - Non-current liabilities decreased to SGD 2,286,255 in 2021 from SGD 2,659,930 in 2020, a reduction of 14.0%[168]. Corporate Governance - The board of directors held 7 meetings and 2 shareholder meetings during the year ended December 31, 2021, with attendance rates of 71.4% for executive directors and 100% for independent non-executive directors[46]. - The audit committee conducted 4 meetings in the year ended December 31, 2021, with full attendance from all members[53]. - The company has appointed three independent non-executive directors, constituting over one-third of the board, ensuring compliance with GEM Listing Rules[50]. - The company’s chairman and CEO roles are separated, with Mr. Chen Tianji serving as chairman responsible for overall management and strategic planning[48]. - The board is committed to corporate governance and compliance with applicable laws and regulations, ensuring the interests of the company and its shareholders are prioritized[45]. - The company has established a remuneration committee consisting of three independent non-executive directors to oversee compensation matters[55]. - The company has adopted a diversity policy for board members, considering factors such as gender, age, and professional experience[58]. Risk Management - The board is responsible for ensuring effective risk management practices to mitigate identified risks and uncertainties affecting the company's financial condition and operations[88]. - The company actively manages customer credit limits and monitors cash flow to ensure sufficient working capital and meet repayment obligations[89]. - The risk management and internal control systems were deemed sufficient and effective as of December 31, 2021, according to the Audit Committee and Board of Directors[69]. Shareholder Information - The company completed a placement of up to 96,000,000 shares at a price of HKD 0.15 per share, raising approximately HKD 14.0 million net after expenses[28]. - The company has granted a total of 12,800,000 share options under the share option scheme, with an exercise price of HKD 0.45 per share, valid from April 9, 2020, to April 8, 2022[129]. - The total number of unexercised share options as of December 31, 2021, is 12,800,000, which accounts for approximately 5.7% of the company's issued share capital[130]. - Absolute Truth Investments Limited holds 39,337,600 shares, equivalent to 17.56% of the company's issued share capital, with Chen Tianji and Chen Guanghui each owning 50% of the company[121]. Compliance and Regulatory Matters - The company has not identified any significant violations of applicable laws and regulations that would materially affect its business operations for the year ended December 31, 2021[105]. - The company is committed to environmental, social, and governance (ESG) practices and will publish an ESG report within five months after the fiscal year ended December 31, 2021[104]. - The company has not experienced any significant impact from COVID-19 related rent concessions on its financial statements[183]. Future Outlook - The company plans to diversify its business portfolio and expand its renovation and refurbishment services in response to ongoing challenges in the construction sector due to COVID-19[13]. - The company will continue to manage its expenses and seek new business opportunities to adapt to the current market environment[13]. - The company expects to continue operating as a going concern, having sufficient resources for the foreseeable future[187].
吉辉控股(08027) - 2021 - 年度财报