Financial Performance - The total revenue for the year ended December 31, 2022, was approximately SGD 34.7 million, an increase compared to the previous fiscal year[11]. - The company recorded a loss of approximately SGD 8.7 million for the year ended December 31, 2022, compared to a loss of approximately SGD 1.2 million for the year ended December 31, 2021[11]. - The increase in loss was primarily due to the absence of a one-time gain from the sale of investment properties amounting to approximately SGD 1.1 million, impairment losses on goodwill and intangible assets, and increased selling and administrative expenses[14]. - The group's revenue increased by approximately SGD 1.9 million or about 5.8% from approximately SGD 32.8 million for the year ended December 31, 2021, to approximately SGD 34.7 million for the year ended December 31, 2022, mainly due to the introduction of more products and an expanded customer base[18]. - The group's cost of sales decreased by approximately SGD 1 million or about 3.9% from approximately SGD 25.9 million for the year ended December 31, 2021, to approximately SGD 24.9 million for the year ended December 31, 2022, in line with the increase in revenue[19]. - The overall gross profit increased by approximately SGD 2.9 million or about 42.0% from approximately SGD 6.9 million for the year ended December 31, 2021, to approximately SGD 9.8 million for the year ended December 31, 2022, with the gross profit margin rising from approximately 21.1% to approximately 28.1%[20]. - The group's administrative and other operating expenses increased by approximately SGD 0.5 million or about 6.9% from approximately SGD 7.2 million for the year ended December 31, 2021, to approximately SGD 7.7 million for the year ended December 31, 2022, primarily due to increased employee costs[22]. - The group's loss for the year increased by approximately SGD 7.5 million from approximately SGD 1.2 million for the year ended December 31, 2021, to approximately SGD 8.7 million for the year ended December 31, 2022, mainly due to the absence of one-time gains from the sale of investment properties and increased selling and administrative expenses[27]. Business Strategy and Outlook - The company aims to expand its business by broadening its customer base and nurturing new clients for long-term growth[11]. - The company continues to seek various business and investment opportunities despite a challenging business environment[11]. - The ongoing impacts of COVID-19, geopolitical risks, and rising interest rates are expected to challenge the company's future outlook[15]. - The company is committed to promoting its brand, providing quality products, and seizing opportunities in various regions[15]. - The company maintains a positive outlook and is taking necessary actions to ensure minimal impact on its core business[15]. - The company will continue to adopt a diversified strategy to optimize its business model and achieve growth in the coming years[15]. Financial Position and Capital Management - The group's total borrowings as of December 31, 2022, amounted to approximately SGD 10.9 million, down from SGD 13.8 million in the previous year, with a capital debt ratio of approximately 82.2%[34]. - The group's current ratio improved to approximately 1.21 times as of December 31, 2022, compared to 1.08 times in the previous year, primarily due to a decrease in current liabilities by about 5.1%[33]. - The group invested approximately SGD 110,000 in capital expenditures related to the acquisition of properties, plants, and equipment for the year ended December 31, 2022[36]. - The group had contingent liabilities related to performance guarantees issued to certain suppliers amounting to approximately SGD 938,000 as of December 31, 2022[43]. - As of December 31, 2022, the distributable reserves available to shareholders were approximately SGD 9.4 million, down from SGD 16.1 million in 2021[58]. Shareholder and Dividend Policy - The company does not recommend the payment of a final dividend for the year ended December 31, 2022, consistent with the previous year[55]. - The company has adopted a general dividend policy aimed at distributing shareholders' profits for any financial year, with no predetermined payout ratio[185]. - The board will regularly review and reassess the dividend policy based on the group's actual and expected financial performance, economic conditions, and other internal and external factors[185]. - The company does not have a fixed dividend distribution ratio, and the declaration, payment, and amount of dividends will be determined at the board's discretion[185]. Corporate Governance and Compliance - The board of directors is committed to high standards of corporate governance and has adhered to all applicable code provisions[135]. - The audit committee reviewed and discussed the group's quarterly, interim, and annual financial statements, ensuring compliance with applicable accounting standards and GEM listing rules[149]. - The remuneration committee reviewed the company's remuneration policies and structures, ensuring no director determined their own remuneration during the year ended December 31, 2022[150]. - The nomination committee was established to oversee the appointment of directors, ensuring compliance with GEM listing rules[151]. - The company has complied with GEM listing rules regarding the independence of its non-executive directors as of December 31, 2022[141]. - The company has not engaged in any related party transactions that require disclosure under GEM listing rules for the fiscal year ending December 31, 2022[118]. Risk Management - The company has faced business risks related to the retention of major customers, which could adversely affect operational performance[125]. - The company has faced financial risks related to foreign currency, interest rates, credit, and liquidity during its operations[127]. - The board is responsible for overseeing the group's risk management and internal control systems, ensuring their effectiveness, particularly regarding environmental, social, and governance (ESG) risks[169]. - The group has implemented a three-tier risk management approach to identify, assess, and manage various types of risks, with business units acting as the first line of defense[171]. - An independent internal control consultant was hired to evaluate the overall internal control of the group, which identified significant deficiencies, yet the board believes the internal control measures are sufficient and effective[173]. - The audit committee conducts an annual review of the effectiveness of the risk management and internal control systems, confirming their adequacy for the year ending December 31, 2022[170]. Employee and Management - As of December 31, 2022, the company employed 62 employees, with total employee costs (including director remuneration) amounting to approximately SGD 4.8 million, an increase from SGD 4.4 million in 2021[44]. - The company has established various training programs to enhance employee skills and capabilities[44]. - The company has a strong management team with diverse backgrounds in finance, marketing, and supply chain development, enhancing its operational capabilities[191][192]. - The management team has significant experience in managing receivables and operational oversight, contributing to the company's financial health[199]. Environmental and Social Responsibility - The company is focused on environmental sustainability, promoting energy-saving practices and the use of eco-friendly materials[120]. - The company emphasizes the importance of managing ESG-related risks to enhance long-term business value[171]. - Charitable donations made by the group amounted to approximately SGD 27,000 for the year ended December 31, 2022, compared to SGD 9,000 in 2021[78].
COOL LINK(08491) - 2022 - 年度财报