Financial Performance - The total revenue for the fiscal year 2023 increased by approximately 43% to about SGD 95.8 million, up from SGD 67.1 million in fiscal year 2022[9]. - Revenue from fresh eggs accounted for approximately 67% of total revenue, increasing by about SGD 17.1 million to approximately SGD 64.8 million in fiscal year 2023[16]. - Revenue from processed eggs remained stable at approximately 29% of total revenue, rising by about SGD 8.0 million to approximately SGD 27.4 million in fiscal year 2023[17]. - The net profit after tax increased from approximately SGD 3.5 million in fiscal year 2022 to about SGD 8.7 million in fiscal year 2023[10]. - Revenue from the sale of fruits, vegetables, and groceries increased by approximately 4% in FY2023, compared to 0% in FY2022, due to the acquisition of a new division[18]. - Gross profit increased from approximately SGD 2.2 million in FY2022 to about SGD 3.4 million in FY2023, with gross profit before fair value adjustments rising from SGD 13.1 million to SGD 20.3 million, mainly due to higher egg prices[20]. - Revenue from agricultural products at fair value increased by approximately SGD 6.0 million (or about 55%) to SGD 16.9 million in FY2023, driven by rising agricultural product prices[23]. - The company reported a significant increase in biological assets, with non-current biological assets rising to SGD 7,829,000 in 2023 from SGD 4,173,000 in 2022, a growth of about 87.5%[189]. - The company reported a significant increase in net profit after tax for the year was SGD 5,046,000, up from SGD 2,618,000 in 2022, reflecting a growth of 93.1%[192]. Assets and Liabilities - The total asset value rose from SGD 73 million as of March 31, 2022, to SGD 91 million as of March 31, 2023[10]. - Total assets increased to SGD 91,437,000 in 2023, up from SGD 72,785,000 in 2022, representing a growth of approximately 25.5%[189]. - Non-current assets rose to SGD 58,636,000 in 2023, compared to SGD 40,666,000 in 2022, marking an increase of about 44.2%[189]. - Current assets remained stable at SGD 32,801,000 in 2023, slightly up from SGD 32,119,000 in 2022, reflecting a growth of 2.1%[189]. - Total liabilities increased to SGD 44,779,000 in 2023, up from SGD 35,009,000 in 2022, indicating a rise of approximately 28.0%[189]. - Net assets grew to SGD 46,658,000 in 2023, compared to SGD 37,776,000 in 2022, which is an increase of around 23.5%[190]. - The company’s total equity increased to SGD 46,658,000 in 2023, up from SGD 37,776,000 in 2022, reflecting a growth of approximately 23.5%[190]. Expansion and Investments - The company is expanding its egg production facilities, with two new chicken houses completed and additional facilities expected to be operational in 2024[9]. - The quail egg farm is under construction and is expected to start operations in 2023, diversifying revenue sources[12]. - Bank borrowings increased to approximately SGD 25.4 million to support the expansion efforts[10]. - The group acquired an egg distribution business and a fruit wholesale business for cash consideration of SGD 798,000 and SGD 300,000, respectively, during the fiscal year[177]. - The acquisitions were accounted for using the acquisition method, necessitating a purchase price allocation[177]. Operational Costs and Profitability - Future profitability will depend on the company's ability to manage rising operational costs and inflationary pressures while passing on costs to customers[12]. - Total sales costs rose by approximately SGD 27.4 million (or about 42%) to SGD 92.3 million in FY2023, primarily due to increased procurement costs for eggs[19]. - Employee costs, including director remuneration, amounted to approximately SGD 11.5 million in FY2023, up from SGD 9.9 million in FY2022[39]. - The company incurred a total of SGD 14,811,000 in capital expenditures for property, plant, and equipment, slightly up from SGD 14,140,000 in 2022[197]. Risk Management - The company faces currency risks primarily from USD, HKD, and EUR, with no financial instruments for hedging[42]. - The company is exposed to various risks including poultry-related diseases, food contamination, and potential loss of licenses[47]. - The company relies on foreign labor, and any disruptions could negatively impact operations[50]. - The company has no long-term contracts with major customers and suppliers, exposing it to credit risk and payment defaults[50]. - The company will continue to engage external professionals to review its internal controls and risk management systems annually[51]. - The effectiveness of the risk management framework will be evaluated at least once a year, ensuring alignment with corporate objectives[49]. Corporate Governance - The company is committed to high levels of corporate governance to protect shareholder interests and enhance corporate value[67]. - The board of directors has confirmed compliance with the adopted securities trading guidelines for the fiscal year 2023[68]. - The company has adopted the corporate governance code as per GEM listing rules, ensuring adherence to principles and guidelines[67]. - The independent non-executive directors are responsible for providing independent judgment and ensuring compliance with laws[58]. - The management team includes experienced professionals with over 30 years in legal and compliance fields[59]. - The company has a structured approach to internal controls and accountability to shareholders[67]. - The board reviews corporate governance practices annually to ensure ongoing compliance[67]. - The company emphasizes the importance of a strong board and good internal controls as key elements of corporate governance[67]. - The board consists of three executive directors and three independent non-executive directors as of March 31, 2023[71]. - The company has maintained compliance with GEM Listing Rules regarding the appointment of independent non-executive directors, ensuring they constitute more than one-third of the board[76]. Shareholder Communication and Dividends - The company has implemented a shareholder communication policy effective from January 1, 2022, ensuring equal access to information for all shareholders[109]. - The company reported no final dividend for the fiscal year 2023, aiming to balance sufficient funds for business development and shareholder returns[123]. - As of March 31, 2023, the company's distributable reserves amounted to approximately SGD 12.7 million, which can be used for dividend payments[133]. - The company has adopted a dividend policy that will be reviewed periodically by the board, considering various factors including financial performance and cash flow[123]. Compliance and Audit - The independent auditor's report confirms that the consolidated financial statements reflect the group's financial position as of March 31, 2023, in accordance with international financial reporting standards[169]. - The audit committee reviewed the annual report for the fiscal year 2023 and found that the performance complies with applicable accounting standards and regulations[167]. - The board is responsible for overseeing the group's risk management and internal control systems, which are reviewed at least annually[105]. - The company has designed policies and monitoring measures to safeguard assets, ensure compliance with regulations, and maintain reliable financial records[105]. - The internal audit function was outsourced to an independent internal audit firm, which reports directly to the audit committee[107].
永续农业(08609) - 2023 - 年度财报