Financial Performance - Total revenue for the fiscal year 2023 was approximately SGD 16.1 million, a decrease of about 31.0% from SGD 23.3 million in fiscal year 2022[15]. - Manufacturing business revenue decreased to SGD 15.843 million, accounting for 98.58% of total revenue, down from SGD 23.264 million in the previous year[16]. - The company recorded a net loss attributable to shareholders of approximately SGD 4.9 million in fiscal year 2023, compared to a profit of SGD 2.1 million in fiscal year 2022[7]. - Gross profit decreased by approximately 44.5% to SGD 5.9 million, primarily due to reduced revenue in the manufacturing business and fixed production overhead costs[13]. - The group's gross profit for fiscal year 2023 was approximately SGD 5.9 million, a decrease of about SGD 4.8 million or 44.5% from SGD 10.7 million in fiscal year 2022, with a gross margin of approximately 37.0% compared to 46.0% in the previous year[20]. - Administrative expenses rose by approximately 6.1% to SGD 5.5 million in fiscal year 2023 from SGD 5.2 million in fiscal year 2022, mainly due to inflation and increased legal and professional fees related to business development[21]. - The group's income tax expense decreased by approximately 35.0% to SGD 0.7 million in fiscal year 2023 from SGD 1.2 million in fiscal year 2022, mainly due to reduced profits in the manufacturing segment[24]. - The group recorded a net loss of approximately SGD 4.9 million in fiscal year 2023, compared to a net profit of SGD 2.1 million in fiscal year 2022[25]. - As of December 31, 2023, the group's total equity attributable to owners was approximately SGD 34.1 million, a slight decrease from SGD 34.5 million in the previous year[28]. - The group's current assets net value increased to approximately SGD 37.7 million from SGD 23.8 million in fiscal year 2022, with cash and cash equivalents totaling about SGD 39.0 million compared to SGD 23.5 million in the previous year[28]. Online Business Development - The online business generated revenue of SGD 0.228 million, representing 1.42% of total revenue, an increase from SGD 0.037 million in the previous year[16]. - The company plans to accelerate the development and optimization of mobile games to enhance its online business in fiscal year 2024[8]. - The online business segment's mobile gaming revenue increased by approximately 516.2% to about SGD 0.23 million from SGD 0.04 million in fiscal year 2022, driven by the launch of new game experiences that expanded the player base[19]. Manufacturing Sector Challenges - The manufacturing sector in Singapore contracted by 4.3% in 2023, impacting the company's sales orders[7]. - In the fiscal year 2023, the manufacturing segment's revenue decreased by approximately 31.9% to about SGD 15.8 million from SGD 23.3 million in fiscal year 2022, primarily due to a decline in market demand in Singapore's sheet metal manufacturing industry[18]. - The company aims to improve production capacity and efficiency through machinery upgrades and the adoption of robotic technology[8]. - The board will continue to explore new business opportunities to diversify revenue sources amid challenges in the manufacturing sector[8]. Employee and Management Practices - As of December 31, 2023, the group employed 207 full-time employees, a slight decrease from 209 in 2022[40]. - The company has invested in various training programs for employees, focusing on management and soft skills[40]. - The company has established guidelines to assess employee performance and implement development plans[40]. - The board has reviewed and approved director remuneration based on the group's operational performance and market competitiveness[40]. - The company has maintained good relationships with employees, offering competitive salaries and bonuses[140]. - The company has a total of 207 employees as of December 31, 2023, with a gender ratio of approximately 3:1 (male to female)[196]. - The age distribution of employees shows that 10% are aged 30 or below, 42% are between 31-50 years, and 48% are over 50 years[197]. - The company emphasizes the importance of continuous development of employee skills and capabilities to adapt to market and technological changes[200]. Corporate Governance and Compliance - FSM Holdings Limited is committed to improving its corporate governance practices, having adopted all relevant codes from the Stock Exchange's corporate governance guidelines[55]. - The board of directors has emphasized the importance of sustainability, aiming to reduce operational carbon emissions by 30% over the next five years[56]. - The company has established a remuneration committee to review and approve the remuneration packages for all directors and senior management, ensuring alignment with corporate performance[66]. - The audit committee held three meetings during the year to review the audited annual performance for the year ending December 31, 2022, and the unaudited interim performance for the six months ending June 30, 2023[74]. - The company has not reported any significant non-compliance with relevant laws and regulations during the fiscal year 2023[101]. - The company has established anti-fraud and anti-money laundering policies to promote compliance with relevant laws and regulations[84]. - The company has received annual independence confirmations from independent non-executive directors, affirming their compliance with listing rules[60]. - The company has appointed independent non-executive directors with relevant professional qualifications to ensure compliance with financial reporting standards[60]. Risk Management - The risk management and internal control systems are designed to assess and respond to risks, including environmental and social risks, ensuring the protection of shareholder interests[85]. - An external internal audit team has been engaged to review the risk management and internal control systems for the fiscal year 2023[86]. - The company faces risks in its manufacturing business, including reliance on major customers and currency fluctuations[110]. - The online business is exposed to risks such as reliance on distribution channel suppliers and competition from other entertainment forms[110]. Sustainability and Community Engagement - The company has been certified with ISO 14001:2015 for its environmental management system, aiming to enhance energy efficiency and minimize operational impacts[102]. - The company made charitable donations of approximately SGD 6,000 in the fiscal year 2023, a significant decrease from SGD 274,000 in the fiscal year 2022[106]. - The company emphasizes the importance of balancing business growth with sustainable development, integrating sustainability parameters into its business model[166]. - Stakeholder engagement is prioritized, with key issues including customer satisfaction, occupational health and safety, and business ethics being highlighted[167]. - The company maintains communication with stakeholders to address their concerns and interests[164]. Supplier and Customer Relationships - The largest supplier accounted for approximately 11.3% of total procurement in FY2023, down from 13.9% in FY2022[139]. - The top five suppliers represented about 42.7% of total procurement in FY2023, compared to 36.7% in FY2022[139]. - The largest customer contributed approximately 48.9% of total revenue in FY2023, a decrease from 53.0% in FY2022[139]. - The top five customers accounted for about 98.0% of total revenue in FY2023, slightly down from 99.0% in FY2022[139]. - The company has established a supplier monitoring policy to manage supply chain risks and ensure the provision of quality products and services[180]. Operational Efficiency - The company has implemented an ERP system to enhance production efficiency, reduce costs, and maintain high product quality, thereby shortening production cycles[174]. - Monthly evaluations of supplier performance are conducted, with underperforming suppliers required to take corrective actions[181]. - The quality control process includes identifying issues, investigating causes, and implementing corrective measures[178]. - The company achieved a BizSAFE Level 4 certification from the Singapore Workplace Safety and Health Council, demonstrating its commitment to maintaining workplace safety and health standards[190]. - A total of 281.7 hours of safety training were provided to employees in 2023, representing a 563% increase compared to the previous year[194]. - There were no work-related fatalities or injuries reported during the reporting period, and the company maintained a record of zero fatalities and accidents over the past three years[193].
FSM HOLDINGS(01721) - 2023 - 年度财报