Financial Performance - The company reported a revenue decrease of approximately 44.5% for the fiscal year ending December 31, 2023, compared to the previous year[15]. - Gross profit decreased by approximately 54.6%, resulting in a reported loss of about SGD 10,582,000, compared to a loss of SGD 1,870,000 in the previous year[15]. - Total revenue for the year ended December 31, 2023, was approximately SGD 9,071,000, a decrease of 44.5% compared to SGD 16,340,000 in 2022[18]. - Gross profit decreased by approximately SGD 505,000 or 54.6% to SGD 420,000, primarily due to a 49.0% decline in automotive parts and vehicle sales[19]. - The company reported a net loss of approximately SGD 10,582,000 for the year, compared to a loss of SGD 1,870,000 in the previous year, representing an increase of 465.9%[26]. - Other income increased from approximately SGD 158,000 to SGD 207,000, mainly due to higher rental income from investment properties[20]. - Administrative expenses rose from approximately SGD 2,965,000 to SGD 4,622,000, an increase of about 55.9%, driven by higher employee benefits and travel costs[25]. - The impairment of investment in Ocean Dragon Group Limited amounted to approximately SGD 6,421,491, reflecting concerns over the recoverability of the investment[29]. - The company reported a total distributable reserve of approximately SGD 3,512,000 as of December 31, 2023, down from approximately SGD 5,167,000 in 2022[149]. - The board does not recommend a final dividend for the year, consistent with the previous year[141]. Market Conditions - The decline in new vehicle registrations in Singapore significantly impacted the company's leather interior and electronic accessories divisions, leading to reduced profit margins and sales[15]. - The quota for new vehicle ownership certificates in Singapore was reduced from approximately 90,000 annually in 2018 and 2019 to about 30,000 to 40,000 from 2020 to 2023, contributing to increased ownership certificate prices[14]. - Ownership certificate prices increased by over 100% from 2022 to 2023, reaching a peak in the second half of 2023, which adversely affected demand for mass-market vehicles[14]. - The Singapore government raised import duties on high-end vehicles, with the maximum rate increasing from 220% to 320% for vehicles valued over SGD 80,000, further impacting the automotive accessories business[14]. - Business and consumer confidence continued to weaken, significantly affecting the company's current performance[15]. Strategic Outlook - The company remains optimistic and is actively exploring new opportunities despite the challenging operating environment[11]. - The company is focusing on its existing business objectives in Singapore while considering growth prospects[11]. - The company emphasizes the importance of resilience and adaptability in navigating market trends and consumer preferences to identify emerging opportunities[17]. - Management plans to implement effective cost control measures and maintain strong relationships with key suppliers to strengthen market position[17]. Governance and Management - The management team expressed gratitude to shareholders, customers, suppliers, and business partners for their continued support during challenging times[11]. - The company has appointed Mr. Zicheng as an executive director, who has over 16 years of experience in financial investment, capital operations, corporate governance, strategic planning, and mergers and acquisitions[58]. - Mr. Cai, appointed as a non-executive director, has over 15 years of experience in corporate finance, accounting, and auditing, and has handled multiple IPOs and M&A transactions[59]. - Mr. Zheng, appointed as an independent non-executive director, has over 15 years of experience in auditing, financial management, and company secretarial matters[60]. - The company is actively expanding its board with experienced professionals to enhance governance and strategic oversight[61]. - The company has a focus on corporate governance and strategic planning, as evidenced by the diverse backgrounds of its board members[62]. - The board currently has 4 male directors, which does not meet the minimum requirement of gender diversity as per listing rules[86]. - The company aims to appoint at least one qualified female candidate to the board within three months starting from March 19, 2024[86]. - The board has adopted a diversity policy to ensure a balanced mix of skills, experience, and perspectives among its members[82]. - The company has established service contracts for both executive and non-executive directors with an initial term of three years[77]. Risk Management - The group faced foreign exchange risk, with a potential impact of SGD 347,000 on after-tax losses if foreign currencies depreciated or appreciated by 10% against the Singapore dollar[50]. - The group aims to identify and manage inherent risks in its business and operational markets, including environmental, social, and governance risks[107]. - The board is responsible for maintaining a sound internal control system, with management tasked with designing and implementing this system[110]. - The risk management framework was adjusted in 2023 to enhance the identification, assessment, and prioritization of risks[111]. - The effectiveness of the risk management framework will be evaluated at least annually, with regular management meetings to update on risk monitoring progress[112]. Compliance and Internal Controls - The company has implemented measures to ensure compliance with legal and regulatory requirements, as well as adherence to corporate governance codes[95]. - The auditor issued a qualified opinion on the consolidated financial statements for the year ended December 31, 2023, due to lack of sufficient audit evidence regarding the financial information of the group's associates[119]. - The company has updated its accounting policies to address identified internal control deficiencies[118]. - The company has no internal audit function but will continue to engage external independent experts to review internal controls and risk management annually[122]. - The company’s compliance policies ensure adherence to applicable laws and regulations, with no known significant non-compliance issues reported for the year[146]. Shareholder Communication - The company is committed to maintaining effective communication with shareholders and potential investors, providing timely disclosures of relevant information[128]. - The company has established various communication channels with shareholders, including annual general meetings and regular updates on financial performance and strategic direction[133]. - The company will suspend the transfer of shares registration from June 25, 2024, to June 28, 2024, to determine eligibility for the upcoming annual general meeting[197]. - The auditor's report for the consolidated financial statements has been reviewed by the current auditor, and a resolution will be proposed at the annual general meeting for their reappointment[198].
万马控股(06928) - 2023 - 年度财报