Financial Performance - The total revenue of the company increased by approximately 28% from about SGD 52.5 million in FY2021 to approximately SGD 67.1 million in FY2022[8]. - The net profit after tax decreased from approximately SGD 7.5 million in FY2021 to about SGD 3.5 million in FY2022, a reduction of around 53.3%[9]. - The total asset value rose from SGD 58.7 million as of March 31, 2021, to SGD 72.8 million as of March 31, 2022[9]. - In the fiscal year 2022, approximately 71% of revenue (about SGD 47.7 million) came from the sale of fresh eggs, an increase of about SGD 10.7 million from SGD 37.0 million in fiscal year 2021[15]. - Revenue from processed eggs accounted for approximately 29% (about SGD 19.4 million) in fiscal year 2022, up by about SGD 3.9 million from SGD 15.5 million in fiscal year 2021, primarily due to increased sales to food service customers as COVID-19 restrictions eased[16]. - Total sales costs increased by approximately SGD 12.8 million (or about 25%) to SGD 64.9 million in fiscal year 2022, mainly due to rising procurement costs of eggs[17]. - Gross profit before fair value adjustment decreased from approximately SGD 13.7 million (26% margin) in fiscal year 2021 to SGD 13.1 million (20% margin) in fiscal year 2022, attributed to increased operational costs[18]. - Cash and cash equivalents were approximately SGD 10.1 million as of March 31, 2022, compared to SGD 10.9 million as of March 31, 2021[26]. - Total borrowings increased to approximately SGD 23.5 million as of March 31, 2022, from SGD 13.0 million as of March 31, 2021[29]. Operational Developments - The company plans to enhance its self-production of eggs to reduce reliance on purchased eggs, with new laying facilities expected to be operational within two years[11]. - The company is expanding its existing egg sorting, packaging, and processing facilities to accommodate increased egg production[11]. - A quail breeding farm is under construction, expected to diversify revenue sources once operational in 2023[11]. - The company experienced increased operational costs due to supply chain disruptions and rising commodity prices influenced by COVID-19[8]. - The company anticipates that its operating costs and capital expenditures may be affected by global economic uncertainties and inflation pressures due to the European conflict[11]. Risk Management - The group has identified various risks, including poultry-related diseases, food contamination, and reliance on foreign labor, which could impact business operations[48][49][56]. - The group continues to monitor the impact of COVID-19 on business operations, with egg prices expected to remain volatile[68]. - The group faces foreign currency risks primarily related to USD, HKD, and EUR, with no financial instruments used for hedging[43]. Corporate Governance - The company has adopted the corporate governance code as per GEM listing rules to ensure high standards of corporate governance and protect shareholder interests[84]. - The board consists of three executive directors and three independent non-executive directors, ensuring a balanced governance structure[88]. - The company has complied with the requirement of having at least one independent non-executive director with appropriate professional qualifications or accounting expertise[91]. - The chairman and CEO roles are currently held by the same individual, which the board believes is in the best interest of the company for effective strategic planning[90]. - The board is responsible for overseeing the company's business, strategic decisions, and performance, ensuring alignment with stakeholder interests[86]. - The company has established a robust internal control and risk management system to monitor operational and financial performance[96]. - The board will review its governance practices annually to ensure ongoing compliance with the corporate governance code[84]. Employee and Shareholder Relations - The group had a total of 268 employees as of March 31, 2022, compared to 255 employees in the previous year[37]. - Employee costs, including director remuneration, amounted to approximately SGD 9.9 million for the fiscal year 2022, up from SGD 8.4 million in fiscal year 2021[37]. - The company recognizes employees as valuable assets and provides competitive compensation to attract and retain suitable personnel[162]. - The company emphasizes effective communication with shareholders through regular reports and meetings, encouraging attendance at the annual general meeting[123]. Strategic Initiatives - The company is investing in new technology development, focusing on D, which aims to enhance operational efficiency and product quality[74]. - Market expansion plans include entering E markets, with an expected increase in market share of F% over the next two years[74]. - The company is considering strategic acquisitions to bolster its market position, targeting G companies in the industry[74]. - Sustainability initiatives are being prioritized, with a commitment to reduce carbon emissions by H% by 2025[74]. - The company is focused on improving shareholder value, with plans to increase dividends by I% in the upcoming fiscal year[74]. Audit and Compliance - The independent auditor, Mazars LLP, was appointed effective January 5, 2022, following the resignation of PricewaterhouseCoopers LLP[179]. - The audit committee reviewed the annual report and confirmed that the performance aligns with applicable accounting standards and GEM listing rules[179]. - The company has outsourced its internal audit function to an independent internal audit firm, which reports directly to the audit committee[121]. - The company has established procedures for handling and disclosing inside information in compliance with relevant regulations[122]. - All current directors have received training on the GEM listing rules and ESG reporting guidelines to ensure compliance and enhance governance awareness[113].
永续农业(08609) - 2022 - 年度财报