DATAPULSE TECHNOLOGY LIMITED 2022
ANNUAL R E P O RT
CONTENTS
01 CHAIRMAN'S STATEMENT
03 REVIEW OF OPERATIONS AND FINANCIAL PERFORMANCE
05 FINANCIAL HIGHLIGHTS
08 BOARD OF DIRECTORS
10 CORPORATE INFORMATION
12 SUSTAINABILITY REPORT 2022
32 CORPORATE GOVERNANCE REPORT
64 DIRECTORS' STATEMENT
68 INDEPENDENT AUDITORS' REPORT
- CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
- STATEMENTS OF FINANCIAL POSITION
- CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
- CONSOLIDATEDFLOWS STATEMENT OF CASH
80 NOTES TO THE FINANCIAL STATEMENTS
129 STATISTICS OF SHAREHOLDINGS
131 NOTICE OF ANNUAL GENERAL MEETING
CHAIRMAN'S
STATEMENT
Dear Shareholders,
On behalf of the Board of Directors (the "Board") of Datapulse Technology Limited (the "Company", together with its subsidiaries, collectively the "Group"), I am pleased to present to you the Annual Report for the financial year ended 31 July 2022 ("FY2022").
FY2022 continues to be a challenging year for the Group. Since the outbreak of the COVID-19 pandemic more than two year ago, most countries have now evolved to "Living with COVID" with the situation being described as "endemic" as opposed to being a "pandemic".
Our wholly owned hotel asset, Travelodge Myeongdong City-Hall ("TLMC") in Seoul, South Korea, pivoted into residential style accommodation from August 2021 to early December 2021 and operated as a treatment centre for COVID-19 patients from end of December 2021 to beginning of May 2022. It resumed full hotel operations in June 2022.
Our other hotel investment in Seoul, Travelodge Myeondong Euljiro ("TLME"), in which we hold 15%, also operated as a COVID-19 quarantine facility from August 2021 to early December 2021 and again from January 2022 to February 2022.
Renovations at our hotel investment in Singapore, Travelodge Harbourfront Singapore ("TLHS"), delayed because of the COVID 19 pandemic, were completed towards the end of FY2022. TLHS is now well-positioned to benefit from the strong recovery of inbound tourists as Singapore became one of the first major regional economies to announce it would end all COVID-19 testing for incoming vaccinated travellers in April 2022.
DIVIDEND
Given the Group's current loss position for FY2022, the Group continues to be mindful of the need to conserve cash to fund its operations. The Board is not recommending the payment of a dividend for FY2022.
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DATAPULSE TECHNOLOGY LIMITED • ANNUAL REPORT 2022
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DATAPULSE TECHNOLOGY LIMITED • ANNUAL REPORT 2022
CHAIRMAN'S
STATEMENT
BUSINESS OUTLOOK
Soon after the Group announced its full year results, the South Korean government announced that it will no longer require on-arrivalCOVID-19 polymerase chain reaction ("PCR") testing for inbound visitors and its returning residents, with effect from 1 October 2022. In addition to the easing of COVID-19 testing requirements by the South Korean government, the further relaxation of COVID-19 testing and restrictions for the fully vaccinated travellers announced by a few other countries recently is expected to have a positive effect on our two hotels operating in Seoul. However, China, the largest contributor to the regional tourism before COVID-19, has continued its "Zero-COVID" policy which discourages outbound travel and requires Chinese tourists to be subject to lengthy quarantine on their return. This will continue to have a dampening effect on regional tourism.
Looking ahead, the Group will actively seek and evaluate investment opportunities in spite of COVID-19. In order to position ourselves for potential investment opportunities, we have announced a rights issue of warrants on 29 September 2022.
Mr Yee Chia Hsing, an experienced banking professional, joined our management team as Executive Director in August 2022. The Board and the entire management team are committed to deliver long term value for all our shareholders.
APPRECIATION
Mr Teo Choon Kow @ William Teo, our Lead Independent Director, will be retiring as a Director of the Board after the Annual General Meeting. I would like to take this opportunity to thank him for his valuable service to the Company in the past.
On behalf of the Board of Directors, I would also like to extend my sincere appreciation to our shareholders, business partners, and all our stakeholders for their support in this challenging times. I would also like to thank our management team for their hard work and dedication throughout the year as they continue to ride through the COVID-19 crisis together with the Group.
AW CHEOK HUAT
NON-INDEPENDENT
NON-EXECUTIVE CHAIRMAN
REVIEW OF OPERATIONS
AND FINANCIAL PERFORMANCE
03
ANNUAL REPORT 2022
REVIEW OF OPERATIONS AND FINANCIAL PERFORMANCE
FINANCIAL PERFORMANCE
The Group's revenue is contributed by 3 business segments; namely the hotel operations, asset management and investment trading segments.
The Group recorded total revenue of $1.9 million in FY2022. The hotel operations business contributed $1.5 million through the Group's hotel namely Travelodge Myeongdong City-Hall ("TLMC"), while asset management fees and investment income each contributed $0.2 million.
Hotel operations revenue increased from $0.6 million in year ended 31 July 2021 ("FY2021") to $1.5 million in FY2022 as TLMC was offering residential style accommodation for long stay guests prior to its conversion to operate as a treatment centre for COVID-19 patients from end of December 2021 to beginning of May 2022. From June 2022 onwards, TLMC has resumed its normal hotel operations. TLMC only operated for approximately eight months in FY2021 with minimal inbound tourism due to the temporarily closure of the hotel from August 2020 to end of November 2020 amid to the severe COVID-19 situation.
Revenue from asset management fees and investment trading each remains at $0.2 million in FY2022, similar to FY2021.
The decrease in other income of the Group from $0.7 million in FY2021 to $0.2 million in FY2022 was mainly due to the decrease in government grant income, other sundry income and fair value gain on short-term investments.
The increase in hotel operation expenses and staff costs in FY2022 were mainly due to TLMC operated for the full year in FY2022 whilst it was partially closed in FY2021.
The depreciation cost of $1.0 million for FY2022 came mainly from depreciation charge on the freehold building, and renovation works for the Group's property in Seoul, South Korea. The decrease in depreciation for FY2022 mainly due to the appreciation of the Singapore dollar ("SGD") against the South Korean won ("KRW"), non-renewal of lease for office space and motor vehicle ended in FY2022.
The decrease in finance cost is mainly due to the repayment of the KRW term loan during the year.
The other operating expenses increased from $1.1 million in FY2021 to $1.3 million in FY2022 mainly due to professional fees and other expenses incurred in connection with a corporate action announced in December 2021, short term operating leases, office reinstatement costs and other miscellaneous expenses incurred by the Group.
Based on the above, the Group's loss attributable to the shareholders was $3.3 million in FY2022 against a loss of $3.7 million in FY2021.
FINANCIAL POSITION
The property, plant and equipment decreased from $46.0 million as at 31 July 2021 to $40.5 million as at 31 July 2022 due to foreign exchange movement arising from the appreciation of SGD against KRW and depreciation charged during the year.
Rights-of-use assets of $0.1 million as at 31 July 2022 mainly relates to the Group's office lease.
Long-term investment securities of $2.7 million as at 31 July 2022 relates to a 15% minority interest in a hotel in Seoul, South Korea and a 5% minority interest in a hotel in Singapore.
DATAPULSE TECHNOLOGY LIMITED •
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Datapulse Technology Ltd. published this content on 12 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 November 2022 08:50:06 UTC.
