Financial Performance - The company recorded total revenue of approximately SGD 32.8 million for the year ended December 31, 2021, an increase compared to the previous fiscal year[9]. - The group’s revenue increased from approximately SGD 27.4 million for the year ended December 31, 2020, to approximately SGD 32.8 million for the year ended December 31, 2021, representing a growth of about 19.4%[16]. - The company incurred a loss of approximately SGD 1.2 million for the year ended December 31, 2021, compared to a loss of approximately SGD 0.3 million for the year ended December 31, 2020[12]. - The group recorded a loss for the year of approximately SGD 1.2 million, an increase of about SGD 0.9 million from the previous year's loss of approximately SGD 0.3 million, driven by higher selling and distribution costs and increased administrative expenses[24]. Expenses and Costs - The increase in loss was primarily due to higher marketing expenses related to new product launches and increased administrative and other expenses[12]. - The cost of sales rose from approximately SGD 20.3 million to approximately SGD 25.9 million, an increase of about 27.3%, aligning with the revenue growth[17]. - The overall gross profit decreased from approximately SGD 7.1 million to approximately SGD 6.9 million, a decline of about 3.2%, with the gross profit margin dropping from approximately 26.0% to 21.1% due to rising logistics and inventory costs[18]. - Selling and distribution costs increased from approximately SGD 1.8 million to approximately SGD 3.0 million, a rise of about 71.1%, primarily due to increased marketing expenses for new product launches[19]. - Administrative and other operating expenses rose from approximately SGD 5.9 million to approximately SGD 7.2 million, an increase of about 20.5%, mainly due to amortization of intangible assets and one-time non-cash payments related to share-based payments[20]. Corporate Strategy and Governance - The company aims to expand its customer base and cultivate new customers to achieve long-term growth despite challenges posed by the COVID-19 pandemic[9]. - The company is actively seeking various business and investment opportunities to enhance shareholder returns[9]. - The company is committed to maintaining good corporate governance and effective cost control measures[9]. - The company continues to explore diverse opportunities to broaden revenue sources and increase market share[13]. - The company expresses gratitude to shareholders, investors, suppliers, business partners, and customers for their support[9]. Financial Position and Ratios - As of December 31, 2021, the group's total borrowings were approximately SGD 13.8 million, down from SGD 16.7 million in the previous year, with a debt-to-equity ratio of approximately 70.4% compared to 109.1% in the prior year[33]. - The current ratio as of December 31, 2021, was approximately 1.08, a decrease from 1.4 in the previous year, primarily due to a 10.2% increase in current liabilities[32]. - The company’s distributable reserves as of December 31, 2021, were approximately SGD 7.1 million, an increase from SGD 3.5 million in 2020[57]. Employee and Operational Information - As of December 31, 2021, the group employed 66 employees, an increase from 58 employees in 2020, with total employee costs approximately SGD 4.4 million, up from SGD 3.9 million in 2020[43]. - The group reported a contingent liability of SGD 955,000 related to performance guarantees issued to suppliers, compared to SGD 925,000 in 2020[42]. Shareholder and Dividend Information - The company did not recommend a final dividend for the year ended December 31, 2021, consistent with no dividend in 2020[54]. - The company has no predetermined dividend payout ratio, allowing the board to determine the amount and timing of dividends at their discretion[173]. - The company’s board will regularly review and reassess the dividend policy based on financial performance and market conditions[173]. Risk Management and Compliance - The company faces business risks related to the retention of major customers and inventory management[113]. - The board of directors is responsible for overseeing the risk management and internal control systems, which are deemed effective and sufficient for the year ended December 31, 2021[161]. - The company has established a three-tier risk management approach to identify, assess, and manage various types of risks[160]. - The company has adhered to all applicable laws and regulations without any significant violations during the year ended December 31, 2021[109]. Board and Management - The board of directors consists of two executive directors, one non-executive director, and three independent non-executive directors as of December 31, 2021[130]. - The company has been expanding its board with experienced professionals to enhance governance and oversight[182]. - The company appointed Mr. Cai Wei-tang as a non-executive director and vice chairman on January 22, 2021, bringing over 21 years of project management experience[179]. Audit and Financial Reporting - The independent auditor's report confirms that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2021[189]. - The financial statements were prepared in accordance with the Hong Kong Financial Reporting Standards and the Hong Kong Companies Ordinance[190]. - The audit committee reviewed the group's financial statements and confirmed compliance with applicable accounting standards and GEM listing rules[138]. Internal Controls and Transparency - The company has implemented internal controls for the timely release of insider information to the public, ensuring stakeholders have access to the latest data[165]. - The company emphasizes high transparency to enhance investor relations and commits to timely disclosure of business and financial performance through annual, interim, and quarterly reports[168].
COOL LINK(08491) - 2021 - 年度财报