Financial Performance - The group's revenue for the year ended December 31, 2023, decreased by approximately SGD 2,781,000 or about 11.8% to approximately SGD 23,463,000 compared to the previous year[9]. - The group reported a profit of approximately SGD 1,243,000 for the year ended December 31, 2023, reversing a loss of approximately SGD 1,599,000 from the previous year[9]. - The gross profit margin improved from a loss of 6.1% for the year ended December 31, 2022, to a profit margin of 5.3% for the year ended December 31, 2023, primarily due to a decrease in diesel costs[9]. - The group recorded a net loss of approximately SGD 5,114,000 for the year ended December 31, 2023, compared to a net loss of approximately SGD 8,664,000 for the previous year[9]. - Revenue from truck transportation services decreased by approximately SGD 846,000 to about SGD 21,336,000, a decline of 3.8%, primarily due to reduced trade volumes[15]. - Revenue from consolidation services decreased by 47.6% or approximately SGD 1,935,000, attributed to a decrease in customer demand for storage space as ships arrived more timely[18]. - Other income decreased by approximately SGD 59,000 to about SGD 175,000, primarily due to reduced government subsidies from Singapore[24]. - Administrative expenses increased from approximately SGD 5,946,000 to about SGD 6,297,000 for the year ended December 31, 2023[25]. - The group recorded a loss of approximately SGD 5,114,000 for the year ended December 31, 2023, an improvement from a loss of approximately SGD 8,664,000 in the previous year[27]. Economic Outlook - Singapore's GDP is projected to grow between 1% to 3% in 2024, indicating potential economic recovery[10]. - The recovery of port and factory activities is expected to have a positive impact on the group's customer base and, consequently, on the group itself[13]. Business Strategy and Operations - The management is continuously monitoring global trade economics and engaging with customers to understand their needs and the market situation[10]. - The group aims to assess the feasibility of obtaining necessary licenses to provide various transportation management services in other Asian countries to enhance shareholder returns[10]. - The company primarily serves logistics service providers in the Singapore and Hong Kong supply chains, transporting goods such as plastic resins, scrap steel, and paper products[8][13]. - The management team is experienced and has developed a large fleet capable of handling significant customer orders[13]. - The company purchased 11 Euro 6 compliant trucks and 15 trailers, contributing to its transportation capacity expansion[39]. - A new office space of approximately 1,000 square feet was acquired to accommodate additional staff[39]. - The company has completed the installation of a customized container tracking system and an enterprise resource planning system[39]. - A total of 27 experienced truck drivers were hired to support operational needs[40]. - The company allocated approximately HKD 26,062,000 for purchasing new vehicles to enhance transportation and storage capabilities[41]. Corporate Governance - The company believes that good corporate governance is crucial for efficient business management and protecting stakeholder interests[72]. - The company has complied with the corporate governance code from January 1, 2023, to December 31, 2023, except for the separation of roles between the Chairman and the CEO[72]. - The company has entered into a non-competition agreement with its controlling shareholders, ensuring they will not engage in any competing business during the agreement's duration[75]. - The board of directors consists of five members, including two executive directors and three independent non-executive directors, with all directors confirming their compliance with the non-competition agreement[79]. - The chairman and CEO roles are held by the same individual, which the board believes is appropriate for effective management and business development[84]. - All directors have participated in training courses and have confirmed their ongoing professional development, ensuring they are well-informed about their responsibilities[89]. - The board is responsible for the overall corporate governance functions, including policy formulation and compliance monitoring[91]. - The company has established policies for significant contracts and financial assistance, which require board approval[90]. - The independent non-executive directors have confirmed their independence, except for one director who has a familial relationship with an executive director[86]. - The company is committed to reviewing its corporate governance structure to assess the necessity of separating the roles of chairman and CEO[85]. Risk Management - The board is responsible for identifying and managing key risks related to financial, operational, and compliance activities, ensuring effective risk management systems are in place[122]. - An independent internal control consultant has been engaged to review the company's internal control systems and risk management processes[123]. - The board will regularly review the need for an internal audit department, considering the company's size and nature of business[122]. Environmental, Social, and Governance (ESG) Initiatives - The company has established a governance framework to manage environmental, social, and governance (ESG) matters, with a dedicated committee overseeing ESG initiatives[137]. - The ESG report covers the fiscal year ending December 31, 2023, focusing on logistics services in Singapore, including truck transportation and storage services[136]. - The company adheres to the "comply or explain" provisions of the ESG reporting guidelines set by the Hong Kong Stock Exchange[135]. - The company emphasizes stakeholder communication and actively seeks feedback to improve its ESG practices[142]. - The company has implemented a systematic approach to assess and manage significant ESG issues, including risk assessments and internal evaluations[141]. - The company aims to establish actionable ESG goals and indicators, comparing them with actual performance[8]. - The company has implemented operational measures to reduce greenhouse gas emissions, focusing on direct emissions from logistics operations and indirect emissions from electricity consumption[151]. - The company actively adopts energy-saving and regulatory measures to manage greenhouse gas emissions, including digital office practices to minimize paper usage[152]. - The company has complied with significant environmental laws and regulations regarding emissions and waste management during the reporting period[155]. - The company encourages employees to develop water-saving habits, as its operations primarily involve domestic water usage provided by the government[158]. - The company generates minimal non-hazardous waste, primarily consisting of domestic waste and paper, which is managed by general waste service providers[159]. - The company achieved a cumulative reduction target of 1.8% for diesel consumption by 2028[161]. - The company plans to reduce electricity consumption by 2.1% by 2028[161]. - Water consumption is targeted to be reduced by 2.1% by 2028[161]. - Direct emissions (Scope 1) decreased from 8,278 tons of CO2 equivalent in 2022 to 6,846 tons in 2023[177]. - Indirect emissions (Scope 2) reduced from 36 tons of CO2 equivalent in 2022 to 20 tons in 2023[177]. - Diesel consumption decreased from 2,847,677 liters in 2022 to 2,006,892 liters in 2023[177]. - The company has established an ISO 14001 certified environmental management system to enhance its reputation as an environmentally friendly enterprise[174]. - The company is committed to monitoring and updating its action plans regarding climate change impacts[173]. - The company has implemented measures to maintain equipment and promote energy-saving devices[162][163]. Employee Relations and Training - The company emphasizes employee diversity and fair treatment, aiming to protect employee rights comprehensively[178]. - As of December 31, 2023, the company had a total of 130 full-time employees, down from 140 in 2022, with an overall employee turnover rate of 17.1%[180]. - The employee injury rate for the fiscal year 2023 was 0.0076%, an increase from 0.0055% in 2022, with 28 lost workdays due to injuries[191]. - The company has implemented a comprehensive compensation and benefits system, providing full-time employees with medical, dental benefits, and maternity leave, among others[186]. - The company has not reported any work-related fatalities in the past three years, although minor traffic accidents have occurred[189]. - The company has established a reporting mechanism for employees to report fraud or misconduct, ensuring a safe and compliant workplace[187]. - The employee training program includes at least 6 hours of training for drivers on safety regulations during the reporting period[196]. - The company adheres to relevant laws and regulations regarding employee compensation, recruitment, and workplace safety, ensuring compliance throughout the reporting period[185]. - The employee composition includes 118 employees based in Singapore and 12 in Hong Kong, with no part-time or temporary staff hired during the year[180]. - The company has taken measures to ensure a harmonious work environment, including recreational activities to strengthen employee bonds[187]. - The company has complied with all COVID-19 safety measures, including regular disinfection of workplaces and maintaining social distancing[192]. - The company aims for 100% training coverage in anti-corruption training within four years[199]. - The anti-corruption training program will involve management conducting training sessions for office staff and drivers[199]. - The training program will reference guidelines issued by anti-corruption agencies in Singapore and Hong Kong[200].
春能控股(08430) - 2023 - 年度财报