Financial Performance - The group's revenue increased slightly from approximately SGD 13.15 million in the year ended December 31, 2020, to approximately SGD 13.23 million in the year ended December 31, 2021, representing a growth of 0.6%[12] - The group recorded a loss of approximately SGD 2.82 million for the year ended December 31, 2021, compared to a loss of SGD 2.00 million for the previous year, primarily due to the impact of COVID-19[12] - The company's revenue for the fiscal year ending December 31, 2021, was approximately SGD 13.23 million, reflecting a slight increase of SGD 0.08 million or 0.6% from SGD 13.15 million in the previous year[20] - The company recorded a loss of approximately SGD 2.82 million for the fiscal year ending December 31, 2021, compared to a loss of SGD 2.00 million in the previous year, mainly due to the impact of COVID-19[29] - As of December 31, 2021, the company's cash and bank balances were approximately SGD 3.07 million, down from SGD 4.65 million as of December 31, 2020[30] Operational Challenges - The group incurred an impairment loss of SGD 0.71 million related to the right-of-use assets and property, plant, and equipment of its two restaurants[12] - The group anticipates that the tourism and retail sectors in Singapore will continue to be impacted due to ongoing restrictions and the effects of the Russia-Ukraine war[11] - The group expects no further government subsidies for the current year, which will continue to affect the restaurant industry in Singapore[11] - The company maintained a cautious approach to operations and business development in response to the ongoing challenges posed by the COVID-19 pandemic[19] Business Development - The group opened a new Q Classified brand coffee shop in October 2021, located in a prime shopping center on Orchard Road, which performed well[14] - The company ceased operations of two underperforming "Central Hong Kong Café" outlets in Singapore during the fiscal year, while new brand "Café Q Classified" and a new bakery in Malaysia contributed positively to performance[20] - The company has fully utilized the net proceeds from the share placement as of December 31, 2021, with delays attributed to a slowdown in the Singapore restaurant market[49] - The renovation of the new restaurant "Café Q Classified" under the Black Society brand was completed and commenced operations on October 25, 2021[51] Financial Management - Cost of goods sold increased by approximately SGD 0.05 million or 1.3% to about SGD 3.51 million for the fiscal year ending December 31, 2021, from SGD 3.46 million in the previous year[22] - Employee benefits expenses rose by approximately SGD 0.20 million or 3.5% to about SGD 5.86 million for the fiscal year ending December 31, 2021, compared to SGD 5.66 million in the previous year[24] - Other expenses increased significantly by approximately SGD 1.00 million or 44.7% to about SGD 3.25 million for the fiscal year ending December 31, 2021, from SGD 2.25 million in the previous year, primarily due to impairment losses[26] - The company’s cash flow from operating activities was approximately SGD 2.02 million for the fiscal year ending December 31, 2021, but would be approximately SGD 0.52 million when excluding the impact of depreciation and rent concessions[30] - The net cash flow used in investing activities for the year ended December 31, 2021, was approximately SGD 0.42 million, primarily for renovations of new restaurants and two bakery retail stores[31] - The net cash flow used in financing activities for the year ended December 31, 2021, was approximately SGD 3.18 million, mainly for repaying bank loans and lease liabilities[31] - The capital debt ratio as of December 31, 2021, was 83%, a significant increase from 46% as of December 31, 2020[34] Corporate Governance - The board consists of seven members, including four executive directors and three independent non-executive directors, responsible for business and investment planning, annual budgeting, and profit distribution[58] - The company emphasizes high standards of corporate governance, with the current structure having the same person as both Chairperson and CEO, which the board believes ensures consistent internal leadership[76] - The company has adopted a code of conduct for directors' securities trading, aligning with GEM Listing Rules, and all directors have confirmed compliance since the listing date[77] - The board is responsible for overseeing the company's overall strategy, financial performance, and internal control systems[81] - The audit committee was established on April 4, 2018, and consists of three independent non-executive directors, with the main responsibility of reviewing the group's quarterly, interim, and annual performance[87] - The remuneration committee, also established on April 4, 2018, evaluates the performance of directors and senior management and determines their compensation[90] - The nomination committee, formed on April 4, 2018, is responsible for recommending suitable candidates for the board and senior management positions[91] - The company has implemented a board diversity policy to ensure a balance of professional knowledge, skills, and experience among board members[91] Shareholder Relations - The company emphasizes the importance of maintaining ongoing communication with shareholders through various channels, including announcements and reports as per GEM listing rules[124] - The company has adopted a shareholder communication policy to improve transparency and enhance investor confidence[124] - The board of directors recommended not to pay any dividends for the year ended December 31, 2021, maintaining a balance between sufficient capital for business development and rewarding shareholders[135] - The company encourages shareholders to participate in all general meetings to voice their opinions and suggestions[124] Risk Management - The company has implemented policies and procedures to identify, assess, and manage significant risks, with the board overseeing the effectiveness of the risk management and internal control systems[109] - The company has maintained compliance with relevant laws and regulations that significantly impact its business and operations[198] Employee and Supplier Relations - The company has established strong relationships with employees, customers, and suppliers, ensuring a healthy and safe work environment without any reported strikes or workplace accidents during the review year[183] - The five largest customers accounted for less than 30% of the total revenue for the year ended December 31, 2021[133] - The largest supplier and the top five suppliers accounted for approximately 11.0% and 39.0% of total purchases, respectively, for the year ended December 31, 2021[133]
聚利宝控股(08527) - 2021 - 年度财报