Financial Performance - The group's revenue for the year ended December 31, 2022, slightly increased by approximately SGD 25,000 or about 0.1% to approximately SGD 26,244,000 compared to the previous year[10]. - The total performance of the group changed from a profit of approximately SGD 1,341,000 for the year ended December 31, 2021, to a loss of approximately SGD 1,599,000 for the year ended December 31, 2022[10]. - The group recorded a net loss of approximately SGD 8,664,000 for the year ended December 31, 2022, compared to a net loss of approximately SGD 3,605,000 for the year ended December 31, 2021[10]. - Revenue from truck transportation services increased by approximately SGD 685,000 to about SGD 22,182,000, representing a growth of 3.2% due to rising energy costs linked to geopolitical tensions[16]. - Revenue from consolidation services decreased by 14.0% or approximately SGD 660,000, primarily due to reduced demand as ships began arriving more timely[18]. - Other income decreased from approximately SGD 743,000 in 2021 to about SGD 235,000 in 2022, mainly due to reduced government subsidies during COVID-19[24]. - The total assets as of December 31, 2022, were approximately SGD 18,277,000, down from SGD 25,759,000 in 2021[28]. - The current ratio as of December 31, 2022, was approximately 2.1 times, a decrease from 4.2 times in 2021[28]. Operational Challenges - The gross profit margin shifted from 5.1% for the year ended December 31, 2021, to a loss of 6.1% for the year ended December 31, 2022, primarily due to increased diesel costs starting in February 2022[10]. - The upcoming year is expected to be challenging and variable for the group, with ongoing efforts to adapt to potential economic fluctuations[11]. - The overall gross profit turned from a profit of approximately SGD 1,341,000 in 2021 to a loss of approximately SGD 1,599,000 in 2022, with a gross margin shift from 5.1% to -6.1%[20]. - The gross margin for truck transportation services declined from a profit of 2.0% in 2021 to a loss of 4.2% in 2022, largely due to increased diesel costs[21]. - The gross margin for consolidation services fell from a profit of 19.1% in 2021 to a loss of 16.4% in 2022, attributed to decreased customer need for these services[22]. Strategic Initiatives - The company plans to assess the feasibility of obtaining necessary licenses to provide various transportation management services in other Asian countries to enhance shareholder returns[11]. - The company plans to maintain growth in the industry and expand its market share in Singapore, despite uncertainties in global trade economics[49]. - The company has completed the installation of a customized container tracking system and an enterprise resource planning system to strengthen its IT infrastructure[41]. - The company has acquired a new office space of approximately 1,000 square feet in Pioneer Junction to accommodate additional employees[45]. - The company has allocated HKD 2,619,000 for the purchase of a new office to accommodate the growing workforce[45]. Corporate Governance - The company emphasizes the importance of good corporate governance for efficient business management and stakeholder protection[68]. - The company has adopted the trading standards for directors as per GEM Listing Rules, confirming compliance for the year ended December 31, 2022[70]. - The company has a non-competition agreement in place with its controlling shareholders to prevent competition in logistics services in Hong Kong and Singapore[71]. - The company’s board believes it has complied with the corporate governance code from January 1, 2022, to December 31, 2022, except for the separation of roles between the Chairman and CEO[68]. - The board 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[76]. Risk Management - The board is responsible for identifying and managing key risks related to financial, operational, and compliance activities, ensuring that major risks are controlled to a reasonable level[116]. - An independent internal control consultant has been engaged to review the company's internal control systems and risk management processes, submitting a report with findings and recommendations[116]. - The board will continue to review the effectiveness of the corporate governance structure to assess the need for separating the roles of chairman and CEO[81]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report covers the fiscal year ending December 31, 2022, focusing on logistics services in Singapore, primarily truck transportation and consolidation services[129]. - The company has established a systematic management approach to assess and manage significant ESG issues, including risk assessments and stakeholder communication[135]. - The ESG committee is responsible for implementing the company's ESG initiatives and policies, with the board of directors ultimately approving the ESG report[130]. - The company has complied with all "comply or explain" provisions of the ESG reporting guidelines set by the Hong Kong Stock Exchange[128]. - The company actively communicates with stakeholders, including government agencies, investors, employees, customers, suppliers, and the community, to enhance ESG performance[136]. Employee Welfare and Safety - The employee turnover rate for the year was 15.48%, which is considered healthy and stable by the governance committee[171]. - The company aims to enhance employee welfare and benefits, including medical and dental benefits, maternity leave, and competitive compensation[177]. - The company has implemented measures to ensure compliance with labor laws and regulations, including those related to discrimination and child labor[176]. - The company reported a workplace injury rate of 0.0055% for the fiscal year 2022, a decrease from 0.0034% in 2021 and 0.0160% in 2020[182]. - The company has not experienced any work-related fatalities in the past three years[180].
春能控股(08430) - 2022 - 年度财报