Financial Performance - The overall performance of the company was impacted by a 16.8% decline in revenue due to reduced income from the development, manufacturing, sales, and installation of gaming machines and equipment in China[10]. - The company recorded an adjusted EBITDA loss of approximately SGD 3.0 million for the reporting period[10]. - The net loss for the reporting period was approximately SGD 7.2 million after accounting for depreciation, amortization, impairment losses, and financial costs[10]. - The group's revenue decreased by approximately SGD 3.4 million or 14.7% to about SGD 19.8 million for the fiscal year ended December 31, 2021, compared to approximately SGD 23.2 million for the fiscal year ended December 31, 2020[18]. - The overall gross profit decreased by SGD 1.0 million or 20.0% to approximately SGD 4.0 million for the fiscal year ended December 31, 2021, with the gross profit margin slightly declining from about 21.6% to approximately 20.2%[21]. - The group recorded a trade receivables and non-financial assets impairment loss of SGD 7.6 million, primarily from its subsidiary in China due to expected impairment losses on trade receivables[22]. - The group completed the sale of its entire equity interest in the Chinese liquor business, recording a profit from discontinued operations of approximately SGD 0.4 million for the fiscal year[29]. - The group will focus on internal rationalization initiatives and resource optimization to prepare for economic recovery in the coming quarters[17]. Operational Challenges - The ongoing COVID-19 pandemic has created unprecedented effects and challenges for the company's operations, with travel remaining severely limited[9]. - The company faced delays in customer product launches and inventory levels due to ongoing trade tensions and global economic uncertainties, impacting operational plans[45]. - The company is experiencing cash flow issues due to supply chain disruptions and delayed customer payments, necessitating a review of its financial strategies[47]. Management and Governance - The company has a strong leadership team with over 30 years of experience in the injection molding industry, particularly in medical device components[55]. - The financial and administrative director has been with the company for over 25 years, overseeing cash flow and financial reporting[57]. - The company has recently expanded its management team with independent directors who bring diverse expertise in finance and consulting[67][68]. - The company has undergone significant changes in its management structure, enhancing its governance and operational efficiency[66]. - The company is committed to maintaining strong financial oversight through its audit and compensation committees, led by experienced independent directors[65][67]. - The board consists of eight directors, including three executive directors, one non-executive director, and four independent non-executive directors, ensuring independent judgment[92]. - The board is responsible for overseeing the group's risk management and internal control systems, which are reviewed annually[126]. Financial Strategy and Future Outlook - The company remains hopeful for better days ahead, with high global vaccination rates providing some encouragement for economic recovery in the next fiscal year[10]. - The management acknowledges the need to be prepared for the economic recovery amidst ongoing lockdowns and travel restrictions[10]. - The company plans to reallocate approximately SGD 1.2 million of unutilized net proceeds originally designated for injection molding business to general working capital[48]. - The board will continue to assess the use of unutilized net proceeds and may revise plans as market conditions change to enhance operational performance[51]. Corporate Governance - The company has maintained a commitment to high standards of corporate governance to protect shareholder interests and enhance corporate value[87]. - The company has adhered to the corporate governance code, with the exception of the separation of roles between the chairman and CEO, which is currently held by the same individual[87]. - The company emphasizes the importance of transparency and accountability in its governance practices[86]. - The audit committee is responsible for reviewing quarterly, interim, and annual financial statements before submission to the board[107]. - The company has established three functional committees to assist the board in fulfilling its responsibilities[104]. Shareholder Relations - The company encourages shareholders to attend annual general meetings to maintain effective communication[138]. - The company’s major shareholders included 添運環球有限公司, which held 133,400,000 shares, representing 28.00% of the total[170]. - The company did not recommend any final dividend for the fiscal year 2021[146]. Impairment and Asset Management - The impairment loss recognized for the gaming machines and equipment segment was approximately SGD 7,637,000 for the year ended December 31, 2021[198]. - Management is required to perform impairment testing annually for goodwill and whenever there are indications of impairment for other non-financial assets[198]. - Significant judgments and estimates are necessary to determine the recoverable amount of cash-generating units, including expected revenue growth and discount rates[198].
加和国际控股(08513) - 2021 - 年度财报