Financial Performance - The group's revenue increased by approximately SGD 0.28 million or 1.2% to approximately SGD 23.87 million for the year ended December 31, 2023, compared to SGD 23.59 million for the previous year[7]. - The group recorded a loss of approximately SGD 1.53 million, compared to a loss of approximately SGD 0.07 million in the same period last year, primarily due to significant expenses related to brand awareness and market expansion in mainland China[7]. - The group's total revenue for the year ended December 31, 2023, was approximately SGD 23.87 million, a slight increase of SGD 0.28 million or 1.2% from SGD 23.59 million in the previous year, primarily due to additional revenue from new business in mainland China[18]. - Other income and gains increased by SGD 0.43 million or 38.1% to approximately SGD 1.56 million for the year ended December 31, 2023, mainly from realized capital gains on listed securities and asset sales[19]. - Material costs decreased by approximately SGD 1.03 million or 8.1%, leading to an increase in gross margin from 46.0% to approximately 50.9% for the year ended December 31, 2023, due to better margins from new food and kitchen appliance trade and brand management services in mainland China[20]. - Employee benefits expenses rose by approximately SGD 0.79 million or 11.3% to approximately SGD 7.76 million, consistent with the group's strategic expansion in mainland China[22]. - Marketing and advertising expenses increased by SGD 0.12 million or 28.6% to SGD 0.54 million, primarily due to additional marketing expenses incurred by the newly established entity in mainland China[21]. Business Operations - The automotive service business in Singapore generated revenue of SGD 20.5 million, a slight decrease of SGD 0.7 million[10]. - The new venture in mainland China contributed SGD 3.1 million through sales of smart kitchen appliances, food and beverage brand management services, and packaged foods[10]. - The new smart kitchen division is set to develop multiple business models, including offline retail, takeaway services, and SaaS+ empowerment, aiming to become a leading platform in the global pre-prepared food industry[16]. - The group’s new business segment in China contributed approximately 13% to total revenue in 2023, up from 9% in 2022[18]. - The company plans to invest more resources into the green vehicle sector to capture future trends and maintain its market share in Singapore's maintenance and repair market[8]. - The company aims to continue seeking new investment opportunities and/or partnerships to enhance its competitive position[8]. Market Conditions - The overall inflation and high premiums for Certificates of Entitlement (COE) continue to challenge the automotive market in Singapore[7]. - Singapore's government has initiated plans to install 60,000 electric vehicle charging points by 2030 to promote the adoption of electric vehicles[8]. - The number of registered electric vehicles in Singapore increased by 50.5% to 5,468 in 2023, with an adoption rate of 18.1% among total registered vehicles, up from 11.7% in 2022[15]. - The company is subject to regulatory risks in Singapore, particularly regarding vehicle ownership policies that could adversely affect service demand[132]. Financial Position - The net cash flow from operating activities for the year ended December 31, 2023, was approximately SGD 0.46 million, and after adjusting for the impact of IFRS 16, the net cash flow used in operating activities was approximately SGD 0.33 million[36]. - The group’s cash and bank balances as of December 31, 2023, were approximately SGD 2.9 million, compared to SGD 3.0 million as of December 31, 2022[36]. - The asset-to-liability ratio as of December 31, 2023, was 0.3, consistent with the ratio from December 31, 2022[37]. - The group’s long-term loans were secured by legal mortgages on properties owned by the group, with a carrying value of approximately SGD 2.0 million as of December 31, 2023[40]. - As of December 31, 2023, the amount receivable from third-party loans was approximately SGD 2.1 million, mainly related to automotive financing loans[28]. Corporate Governance - The company has a strong commitment to high standards of corporate governance, which is deemed essential for sustainable growth and maximizing shareholder value[74]. - The board consists of nine members, including three independent non-executive directors, promoting critical review and monitoring of management processes[78]. - The company has implemented a code of conduct for directors regarding securities trading, ensuring compliance with relevant regulations[82]. - The board has adopted a diversity policy to ensure a balanced representation of skills, experience, and perspectives among board members, considering factors such as gender, age, cultural background, and professional experience[76]. - The company has established credit risk assessment policies for automotive financing, considering factors such as the brand, model, age, and condition of the collateralized vehicles[33]. Shareholder Relations - The company has adopted a shareholder communication policy to ensure equal and timely access to information for shareholders, allowing them to actively participate in company affairs[109]. - The company encourages shareholders to provide updated contact information to facilitate timely communication[126]. - The board has the authority to convene special general meetings upon request from shareholders holding at least 10% of the paid-up capital[115]. - Shareholders have the right to make inquiries to the board, which can be done in writing or during the annual general meeting[119]. Employee and Management - The total number of full-time employees as of December 31, 2023, was 139, down from 144 as of December 31, 2022[42]. - The employee gender ratio is approximately 72% male and 28% female, reflecting the traditional automotive industry's lower female participation[78]. - The management team includes experienced individuals with backgrounds in technology, finance, and operations, enhancing the company's strategic capabilities[51][53][55]. Risk Management - The company has established policies and procedures to identify, assess, and manage significant risks, including ESG risks, with the board responsible for the overall effectiveness of the risk management system[106]. - The internal audit function has been outsourced to a professional risk advisory firm to review the group's monitoring environment and key business processes[106]. - The risk management committee reviewed the company's risk management policies and internal control mechanisms, including ESG risks, during its 1 meeting[92]. Acquisitions and Investments - The company has agreed to acquire 100% of the registered capital of Shanghai Tianji Zhongwei Industrial Development Co., Ltd. for a total consideration of RMB 19,000,000, equivalent to approximately HKD 20,938,000[175]. - The acquisition will be paid in cash and through the issuance of 357,666,666 shares, representing about 17.88% of the existing issued share capital as of the report date[175]. - The deadline for fulfilling the conditions of the sale agreement has been extended to May 24, 2024, due to the need for additional time[181]. - The company has not made any significant investments or acquisitions related to subsidiaries, associates, or joint ventures for the year ending December 31, 2023[176]. Compliance and Legal Matters - The company has complied with GEM listing rules and provided timely financial information to stakeholders[98]. - The company has complied with relevant laws and regulations that significantly impact its business and operations[186]. - The company is not involved in any significant legal proceedings as of December 31, 2023[48].
中食民安(08283) - 2023 - 年度财报