Business Focus and Expansion - The company reported a focus on automotive after-sales services, including inspection, maintenance, and repair services, as well as car rental services and the supply of automotive parts and equipment[38]. - In response to the COVID-19 pandemic, the company aims to enhance existing operations and explore growth opportunities in sectors such as bio-health, new retail, e-commerce, and franchise management[38]. - A wholly-owned subsidiary, Hunan Optima Automobile Co., Ltd., was established in Changsha, Hunan, on February 3, 2021, to expand parallel import vehicle trade and related services in Central and Southern China[39]. - The new subsidiary will focus on providing a supply chain for imported vehicles, domestic new energy vehicles, automotive parts, and related services, offering a comprehensive service with competitive pricing and flexible financing options[39]. - The company is actively seeking new business opportunities on e-commerce platforms to adapt to the shift in consumer demand from physical stores to online shopping[38]. - The company plans to adopt a cautious approach to expansion while focusing on enhancing its position in the Singapore automotive after-sales service market and increasing market share in mainland China[49]. - The strategic acquisition of Hunan Maliang is seen as beneficial for expanding revenue sources and entering the Chinese market[41]. - The company aims to seek new opportunities in e-commerce to adapt to the shift in demand from physical stores[50]. - The company is focused on expanding its market presence and exploring potential mergers and acquisitions to drive growth[119]. Financial Performance - The group's revenue for the fiscal year ended December 31, 2021, was SGD 57.1 million, an increase of approximately SGD 34.8 million from SGD 22.3 million in the previous fiscal year, primarily due to contributions from the automotive trade business[41]. - Automotive supply revenue increased by approximately SGD 33.3 million to about SGD 42.4 million in the fiscal year 2021, compared to approximately SGD 9.1 million in the previous fiscal year[47]. - The group's automotive after-sales service revenue increased by SGD 0.9 million, reflecting recovery from the impacts of COVID-19[47]. - The group's revenue for the fiscal year 2021 was SGD 57.1 million, an increase of approximately SGD 34.8 million compared to SGD 22.3 million in fiscal year 2020, primarily due to increased sales of passenger car parts and accessories[54]. - Sales from Shenzhen Aodi Taoche Automotive Trading Co., Ltd. amounted to approximately SGD 14.6 million for the fiscal year 2021, while Hunan Aodima Automotive Co., Ltd. generated approximately SGD 27.5 million in sales over 11 months of the fiscal year 2021[54]. - The cost of materials and changes in trade inventory increased by approximately SGD 33.8 million in fiscal year 2021, largely due to operational costs from Hunan Aodima and Shenzhen Aodi Taoche[57]. - Employee benefits expenses rose to approximately SGD 5.4 million in fiscal year 2021, an increase of about SGD 1.2 million from SGD 4.2 million in fiscal year 2020, due to the resumption of salaries after previous reductions[58]. - Other income and gains decreased to SGD 0.4 million in fiscal year 2021 from SGD 1.0 million in fiscal year 2020, primarily due to a reduction in government grants related to COVID-19[55]. - The group recorded a total loss and comprehensive income of approximately SGD 0.7 million for the fiscal year 2021, compared to a loss of approximately SGD 0.8 million in fiscal year 2020[67]. - As of December 31, 2021, cash and cash equivalents amounted to approximately SGD 4.5 million, an increase from SGD 3.3 million in 2020[68]. - The group's asset-to-equity ratio as of December 31, 2021, was 1.2, compared to 0.7 in 2020[68]. - The net debt-to-equity ratio as of December 31, 2021, was 0.7, up from 0.4 in 2020[68]. - The group incurred a tax expense of SGD 0.2 million, primarily due to profits generated by subsidiaries registered in Singapore and China, taxed at rates of 17% and 25% respectively[65]. Risk Management and Compliance - The group faces significant risks including currency, credit, liquidity, and interest rate risks that could adversely affect its business and financial condition[70]. - The company aims to diversify its revenue sources and adapt to the transition towards electric vehicles to mitigate risks associated with the phasing out of internal combustion engine vehicles by the Singapore government[72]. - The expected credit loss rate for current trade receivables is estimated at 0.2%, while overdue receivables show higher expected loss rates of 2% for up to 90 days, 3% for up to 180 days, 7% for over 180 days but within 365 days, and 10% for over 365 days[76]. - The company has established internal monitoring policies regarding insider trading and compliance with trading standards[185]. - The board has approved and adopted an insider information policy to ensure compliance with GEM listing rules and the Securities and Futures Ordinance[193]. - The company emphasizes fair disclosure and comprehensive reporting of its performance and activities to enhance investor relations[196]. Corporate Governance - The company has complied with the corporate governance code as per GEM listing rules for the fiscal year ending December 31, 2021[129]. - The board has conducted an annual review of its risk management and internal control systems, with a professional third party responsible for the audit[130]. - The board retains overall responsibility for major decisions, including financial data and significant transactions[132]. - The company has established a corporate governance committee to oversee compliance with legal and regulatory requirements[134]. - The board consists of six executive directors and three independent non-executive directors, ensuring a balance of skills and experience necessary for the company's business needs[137]. - The company has complied with GEM listing rules by appointing at least three independent non-executive directors, with at least one possessing appropriate professional qualifications and accounting knowledge[138]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with a clear written scope of authority[162]. - The remuneration committee consists of three independent non-executive directors, with the chair being Ms. Chan Mang Chuen[163]. - The audit committee held five meetings during the year, reviewing quarterly, interim, and annual financial statements[166]. - The company has implemented a training program for new directors to ensure they understand the group's structure and their obligations under relevant regulations[147]. Management and Operations - The management team is committed to monitoring the development of the COVID-19 situation to effectively utilize the net proceeds from the share offering[101]. - The management team includes experienced professionals with over 28 years of experience in finance and accounting, enhancing the company's operational capabilities[121]. - The company has a streamlined operational structure, which has been assessed for the need for an internal audit department[130]. - Daily management and operations have been delegated to executive directors and senior management, with regular reviews of responsibilities[134]. - The company has arranged appropriate liability insurance for all directors, which will be reviewed periodically by the board[135]. - The company has established a nomination committee to recommend candidates for board vacancies and governance policies[146]. - The company has implemented a clear organizational structure with defined responsibilities and authorizations for internal controls[190].
傲迪玛汽车(08418) - 2021 - 年度财报