Annual Reports and Related Documents::

GIFTING

KINDNESS IN THE NEW NORMAL

ANNUAL REPORT 2021

CONTENTS	1	About Us	10	Financial Highlights
	2	Managing Director's Message	11	Corporate Information
	5	Board of Directors	12	Sustainability Report
	7	Management Team	39	Financial Contents
	8	Operations Review

ABOUT US

Noel Gifts International Ltd (Noel Gifts) is Singapore's leading hampers, flowers and gifts company with an extensive offering of chic floral arrangements and gifting ideas for the stylish and discerning.

Over the past 46 years, the company has been Bringing People Closer with premium quality gift selections for all occasions. Since its inception in 1975, the company began business under the name "Noel Commerce" as a year- end hamper packaging company. In 1982, the company expanded to incorporate a flower business and was renamed "Noel Hampers and Gifts Pte Ltd" a year later. In 1993, the company was renamed "Noel Gifts International Ltd" due to steady growth of the business. In the same year, the company also became a public listed company on the second board of Singapore Stock Exchange, SESDAQ. In 2008, Noel Gifts was listed on the SGX Mainboard.

Till today, Noel Gifts remains true to its core values, and continues living its vision of

Bringing People Closer, Making Everyday Better.

Noel Gifts International Ltd Annual Report 2021

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MANAGING DIRECTOR'S MESSAGE

2 Gifting Kindness in the New Normal

MANAGING DIRECTOR'S MESSAGE

Dear Shareholders

It is with God's grace that we have prevailed against an uncertain global economy conflated with geopolitical tensions in a tumultuous year. Humbled by our fair share of challenges, we are thankful for His wisdom as we navigate through a gradual economic recovery.

We would like to take this opportunity to express gratitude to our stakeholders - staff members, directors, shareholders, suppliers, customers, business partners, and our caring Government for the continuous support rendered over the year. For without them, many local enterprises such as ours would have been greatly affected by the reverberating economic impact of Covid-19.

As business sentiments improve, it is pivotal that the Group continues to evaluate existing strategies, build and develop talent pool, better processes and stay agile in a landscape that is still ambiguous. The Group will also continue to invest in innovation, digital transformation and human capital to ensure competitiveness and relevance in the long run.

FINANCIAL REVIEW

For the financial year ended 30 June 2021, the Group recorded full year revenue of $18.9 million, representing a decrease of 5.0% from $19.9 million in the previous financial year. The decline was mainly attributable to lower gift sales due to the impact of the Covid-19 pandemic.

The Group reported a gross profit of $9.5 million in FY2021, a decrease of $0.2 million or 2.1% as compared to $9.7 million in FY2020. The decrease in the Group's gross profit was mainly attributable to the reduced sales.

The Group's other income of $1.9 million in FY2021 comprises mainly government grants on wages and rental relief, amounting to $1.6 million. Other income included fair value gain of $0.08 million of investment properties as per independent full valuation report in FY2021.

Distribution costs decreased by $0.5 million to $2.1 million mainly due to reduction in marketing costs, while administrative expenses increased by $0.4 million to $7 million mainly due to higher impairment loss on right-of-use assets and payroll expenses.

Loss allowance on trade receivables increased from $0.2 million to $0.3 million due to the continued assessment of the Covid-19 related impact on the foreseeable credit losses in accordance with SFRS(I) 9.

Noel Gifts International Ltd Annual Report 2021

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