Financial Performance - Kinergy Corporation Ltd. reported total managed assets of approximately SGD 168 million as of December 31, 2023[15]. - The company's revenue for the year ended December 31, 2023, was SGD 92.5 million, a decrease of 25.5% compared to SGD 124.2 million for the year ended December 31, 2022[34]. - The net loss after tax for the year ended December 31, 2023, was approximately SGD 0.9 million, compared to a net profit of SGD 7.3 million for the year ended December 31, 2022[34]. - The EBITDA for the year ended December 31, 2023, was SGD 3.87 million, down from SGD 13.58 million in 2022[21]. - The company's gross profit decreased by approximately 63.2%, from SGD 19.0 million in 2022 to SGD 7.0 million in 2023, resulting in a gross margin decline from about 15.3% to 7.6%[54]. - The company did not recommend a final dividend for the year ended December 31, 2023[35]. - The total assets as of December 31, 2023, were SGD 159.4 million, while total liabilities were SGD 49.8 million[21]. - The total equity attributable to equity holders of the parent as of December 31, 2023, was SGD 94.62 million[21]. Business Segments - The company operates in three segments: Electronic Manufacturing Services, Original Design Manufacturing, and Investment Services[6]. - The Electronic Manufacturing Services segment focuses on low-volume, high-mix production for semiconductor processing equipment, requiring intensive labor[6]. - The Original Design Manufacturing segment designs and manufactures automation equipment and precision tools primarily for the semiconductor industry[11]. - The electronic manufacturing services segment accounted for approximately 85.4% of total revenue, while original design manufacturing and investment segments contributed about 12.1% and 2.5%, respectively[33]. - The electronic manufacturing services segment saw a revenue decline of approximately 27.7%, from SGD 109.2 million in 2022 to SGD 78.9 million in 2023[51]. - The original design manufacturing segment's revenue decreased by about 5.9%, from SGD 11.9 million in 2022 to SGD 11.2 million in 2023[51]. - The investment segment's management fee income fell by approximately 25.5%, primarily due to a reduction in the size of one of the managed funds[48]. Market Position and Recognition - Kinergy has achieved ISO 9001:2015 certification for its quality management system, ensuring high-quality and cost-effective products[16]. - The company has been recognized as a winner of the Enterprise 50 award three times, highlighting its strong market position[16]. - Kinergy's unique engineering capabilities and manufacturing services contribute to its competitive advantage in the market[16]. Operational Strategy - The company plans to maintain operational costs at a low level in preparation for potential economic recovery[43]. - The company is preparing to enter the outsourced semiconductor assembly and testing market with the assistance of Towa Corporation, which holds about 57% of the automotive molding equipment market share globally[47]. - The company is focused on expanding its market presence and enhancing its technological capabilities through strategic hires and partnerships[117]. - The company is exploring new strategies for market expansion and product development to enhance shareholder value[117]. Cash Flow and Investments - As of December 31, 2023, the company's cash and cash equivalents amounted to approximately SGD 18.1 million, a decrease from SGD 20.1 million in 2022[65]. - The net cash flow from operating activities for 2023 was approximately SGD 1.2 million, down from SGD 2.9 million in 2022, primarily due to a cash outflow of SGD 5.3 million for working capital[68]. - The net cash flow from investing activities was approximately SGD 2.9 million, mainly from the sale of investment securities amounting to SGD 7.2 million[69]. - The net cash flow used in financing activities was approximately SGD 5.4 million, primarily for repaying bank loans of SGD 11.1 million[70]. - The company holds a 51% stake in Shanghai Guangpu, which was the only segment to achieve profitability for the year ended December 31, 2023[33]. Corporate Governance - The company has adhered to the corporate governance code as per the listing rules applicable for the year ending December 31, 2023[154]. - One-third of the board members are independent non-executive directors, ensuring compliance with independence criteria[158]. - The board is composed of high-quality members, including the CEO and the Group CFO, focusing on maximizing long-term shareholder value[157]. - The roles of the Chairman and CEO are distinct, with the Chairman responsible for policy formulation and oversight, while the CEO manages daily operations[164]. - The board has conducted a review of corporate governance policies and compliance with legal and regulatory requirements[165]. - The company has established a code of conduct for employees and directors, ensuring ethical behavior and compliance[165]. - The board held a meeting with independent non-executive directors to discuss matters without the presence of other directors[164]. Leadership and Experience - The company has over 43 years of experience in the semiconductor, electronics, and chemical trading industries[100]. - The executive director has over 20 years of experience in corporate finance, capital markets, private equity investments, and mergers and acquisitions[103]. - The financial director has over 56 years of accounting and finance experience, previously serving as managing director of a major offshore and maritime investment company[107]. - The chairman of the board has over 42 years of experience in the semiconductor industry, having held various global management positions[109]. - The company has a strong leadership team with extensive experience in the semiconductor and automation industries, including over 44 years of experience for Mr. Zhan and over 26 years for Mr. Chen[123][126]. Employee and Diversity Initiatives - The employee gender ratio as of December 31, 2023, is approximately 35:65 (female: male), indicating a balanced distribution[179]. - The company aims to appoint at least one female director by December 31, 2024, to enhance gender diversity on the board[177]. - The company emphasizes the importance of independent judgment and leadership in the board's decision-making processes[178]. Environmental, Social, and Governance (ESG) Initiatives - The company has been committed to environmental, social, and governance (ESG) initiatives, as outlined in its ESG report for the year ending December 31, 2023[198]. - The ESG report outlines the group's commitment to sustainable development and its performance in various ESG initiatives[198]. - The company is committed to corporate social responsibility, promoting sustainable economic, social, and environmental development through stakeholder engagement[191].
精技集团(03302) - 2023 - 年度财报