Financial Performance - Total revenue for the year ended December 31, 2023, was SGD 9,071,257, a decrease of 44.5% compared to SGD 16,340,186 in 2022[3]. - Gross profit for the same period was SGD 420,395, down 54.6% from SGD 925,492 in 2022, resulting in a gross margin of 4.6%[3]. - The company reported a net loss of SGD 10,582,191 for the year, a significant increase of 465.9% from a loss of SGD 1,869,568 in 2022[5]. - The company reported a pre-tax loss of SGD 10,410,191 in 2023, compared to a loss of SGD 2,054,729 in 2022[30]. - The net loss for the year was approximately SGD 10,582,000, compared to a loss of SGD 1,870,000 in the previous year, representing an increase in loss of 465.9%[46][54]. - Other income increased from approximately SGD 158,000 to SGD 207,000, mainly due to increased rental income from investment properties[50]. - Administrative expenses rose from approximately SGD 2,965,000 to SGD 4,622,000, primarily due to increased employee benefits, vehicle expenses, and travel costs[53]. Assets and Liabilities - Cash and cash equivalents increased by 18.5% to SGD 8,317,344 from SGD 7,015,867 in the previous year[3]. - Total assets decreased by 41.4% to SGD 14,637,793 from SGD 24,976,553 in 2022[7]. - Total liabilities rose by 21.2% to SGD 1,389,191 compared to SGD 1,145,760 in the previous year[9]. - Total equity decreased by 44.4% to SGD 13,248,602 from SGD 23,830,793 in 2022[7]. - Current assets as of December 31, 2023, were approximately SGD 8,127,000, down from SGD 12,787,000 in 2022, with a current ratio of 6.9 times compared to 12.6 times in the previous year[57]. - The company’s trade payables rose to SGD 909,936 in 2023 from SGD 200,395 in 2022, reflecting increased obligations to suppliers[36]. - Trade receivables increased significantly to SGD 465,006 in 2023 from SGD 142,224 in 2022, indicating a substantial rise in outstanding payments[33]. - The company’s other receivables decreased to SGD 171,551 in 2023 from SGD 212,732 in 2022, indicating a reduction in various outstanding claims[33]. Business Operations - The company continues to engage in the sale and installation of automotive leather interiors and electronic accessories, as well as the sale of electronic components and automotive parts[12]. - The group operates in three main business segments: (i) passenger vehicle leather interiors; (ii) passenger vehicle electronic components; and (iii) automotive parts and vehicles, primarily supplying to distributors and dealers in Singapore and Hong Kong[16]. - Major customer contributions included SGD 1,691,214 from Customer 1 and SGD 6,306,770 from Customer 2, totaling SGD 7,997,984, down from SGD 14,779,786 in 2022[23]. - The cost of goods sold was SGD 7,450,926 in 2023, significantly lower than SGD 14,168,055 in 2022[25]. - The company incurred employee benefits costs of SGD 4,612,157 in 2023, an increase from SGD 3,250,795 in 2022[25]. - The company plans to implement effective cost control measures and maintain strong relationships with key suppliers to strengthen its market position in Singapore[44]. Market Conditions - The company experienced a revenue decline of approximately 44.5% and a gross profit decrease of about 54.6% in 2023, primarily due to a sharp drop in new car registrations in Singapore[42]. - The number of new car ownership certificates issued in Singapore decreased significantly from approximately 90,000 per month in 2018-2019 to about 30,000-40,000 annually from 2020 to 2023, impacting vehicle demand[40]. - The company noted that the high prices of ownership certificates have led to a substantial decline in demand for mass-market vehicles, with prices increasing over 100% compared to 2020 and 2021[40]. - The significant increase in net loss was attributed to a decline in vehicle sales due to reduced quotas for new car registrations and increased import duties on luxury vehicles[58]. - The company faces multiple business risks, including reliance on major customers and market conditions affecting vehicle sales, which could significantly impact financial performance[56]. Compliance and Governance - The group has adopted new International Financial Reporting Standards (IFRS) effective from January 1, 2023, including IFRS 17 related to insurance contracts, without significant impact on financial performance or disclosures[14]. - The group has not early adopted any IFRS amendments that are published but not yet effective, and it is expected that these will not have a significant impact on the group's performance and financial position[15]. - The independent auditor's report indicates a potential impact on the financial statements due to reliance on incomplete financial records from the Ocean Dragon Group Limited[83]. - The investment in the joint venture with Ocean Dragon Group Limited has been fully impaired, amounting to SGD 6,421,491[85]. - The audit committee has been established and consists of two independent non-executive directors, with a commitment to review financial reporting processes[89]. - The consolidated financial statements for the year ended December 31, 2023, have been reviewed and deemed compliant with applicable accounting standards and regulations[90]. - The company is committed to full disclosure as per the requirements of the listing rules and applicable laws[90]. Future Outlook - The company is aware of the importance of resilience and adaptability in the current economic climate and aims to identify emerging opportunities by closely monitoring market trends and consumer preferences[44]. - The group has implemented effective policies to maintain operational liquidity and cash flow amid ongoing economic challenges[61]. - The remaining proceeds from the listing have been fully utilized by the end of the fiscal year 2023[63]. - The total number of employees as of December 31, 2023, was 48, a slight decrease from 49 in 2022[64]. - The board does not recommend the payment of a final dividend for the year[72]. - The annual general meeting is scheduled for June 28, 2024[81]. - The company will suspend the transfer of share registration from June 25 to June 28, 2024, to ensure shareholder voting rights[82].
万马控股(06928) - 2023 - 年度业绩