Financial Performance - Revenue for the six months ended June 30, 2020, was SGD 4,336,000, a decrease of 13% compared to SGD 4,970,000 in 2019[7] - Gross profit for the same period was SGD 460,000, down 70% from SGD 1,545,000 in 2019[7] - Operating profit for the six months was SGD 150,000, a significant improvement from an operating loss of SGD 64,000 in 2019[7] - Net profit attributable to owners for the period was SGD 126,000, compared to SGD 6,000 in the previous year, marking a substantial increase[7] - The group recorded a profit attributable to owners of the company of approximately 0.13 million SGD for the six months ended June 30, 2020, compared to 6,000 SGD in the same period in 2019[74] Assets and Equity - Total assets as of June 30, 2020, were SGD 44,932,000, slightly down from SGD 45,691,000 at the end of 2019[11] - Total equity attributable to owners was SGD 39,564,000, compared to SGD 39,452,000 at the end of 2019, indicating stability[11] - As of June 30, 2020, the group's total equity attributable to owners was approximately 39.56 million SGD, slightly up from 39.45 million SGD as of December 31, 2019[75] Cash Flow - Cash and cash equivalents increased to SGD 12,098,000 from SGD 11,780,000, showing a positive cash flow trend[11] - The net cash generated from operating activities for the six months ended June 30, 2020, was 1,126 thousand SGD, a decrease of 51.4% compared to 2,316 thousand SGD in the same period of 2019[15] - The cash and cash equivalents decreased by 2,506 thousand SGD, resulting in a balance of 9,129 thousand SGD as of June 30, 2020, down from 14,883 thousand SGD at the same time in 2019[15] Income and Expenses - Other income increased significantly to SGD 340,000 from SGD 31,000 in 2019, reflecting a growth of over 1000%[7] - Employee benefits expenses decreased to 1,884 thousand SGD from 2,060 thousand SGD year-on-year, reflecting a reduction of approximately 8.5%[37] - Administrative expenses decreased by approximately 0.01 million SGD or 0.56% to about 1.61 million SGD for the six months ended June 30, 2020[73] Market and Operational Impact - The company plans to focus on market expansion and new product development in the upcoming quarters[11] - The company’s Malaysian manufacturing facility was temporarily closed from March 18 to April 19, 2020, due to COVID-19, impacting production capacity[62] - The group's revenue for the six months ended June 30, 2020, decreased by approximately 0.63 million SGD or 12.76% compared to the same period in 2019, primarily due to the adverse impacts of the COVID-19 pandemic and related restrictions in Singapore and Malaysia[68] Shareholder Information - The major shareholder, Maotong Limited, acquired 602,000,000 shares, representing about 60.20% of the total issued share capital for a total consideration of HKD 252.84 million[98] - Li Thet holds a controlled interest in Maotong Limited, owning 602,340,000 shares, which is approximately 60.23% of the issued share capital[99] Governance and Compliance - The audit committee reviewed the group's unaudited interim results for the six months ending June 30, 2020, with no differing opinions from management[114] - The company has complied with the corporate governance code provisions as of June 30, 2020, after restructuring the roles of chairman and CEO[111] - All directors confirmed compliance with the securities trading code during the six months ending June 30, 2020[115]

Financial Performance - Total revenue for the fiscal year 2019 was approximately SGD 9.6 million, a decrease of about 51.5% from SGD 19.8 million in fiscal year 2018[13]. - Gross profit decreased from approximately SGD 8.6 million in fiscal year 2018 to about SGD 2.8 million in fiscal year 2019, reflecting a significant decline due to reduced sales of higher-margin products[13]. - Net profit attributable to owners for fiscal year 2019 was approximately SGD 59,000, down from SGD 2.1 million in fiscal year 2018, representing a decrease of about SGD 2.0 million[20]. - The group's revenue decreased from approximately SGD 19.8 million in FY2018 to approximately SGD 9.6 million in FY2019, a decline of about SGD 10.2 million or 51.5%[26]. - Revenue from the sale of sheet metal products accounted for approximately 98.1% of total revenue, dropping from approximately SGD 19.2 million in FY2018 to approximately SGD 9.4 million in FY2019, a decrease of about SGD 9.8 million or 51.0%[26]. - Gross profit for FY2019 was approximately SGD 2.8 million, down from approximately SGD 8.6 million in FY2018, a reduction of about SGD 5.8 million or 67.4%[28]. - The gross profit margin for FY2019 was approximately 28.8%, compared to approximately 43.4% in FY2018, primarily due to a significant reduction in sales of higher-margin sheet metal products related to semiconductor manufacturing[28]. - Other income decreased from SGD 55,000 in FY2018 to SGD 53,000 in FY2019, a decline of about SGD 2,000 or 3.6%[29]. - Administrative expenses decreased from approximately SGD 5.5 million in FY2018 to approximately SGD 2.3 million in FY2019, a reduction of about SGD 3.2 million or 58.2%[31]. - The group recorded a net profit of approximately SGD 59,000 in FY2019, compared to approximately SGD 2.1 million in FY2018[32]. Market Challenges - The company faced challenges due to the US-China trade war, which impacted sales and led to delays in customer orders[19]. - Sales of sheet metal products were SGD 9.4 million in fiscal year 2019, compared to SGD 19.2 million in fiscal year 2018, indicating a significant drop in demand[23]. - Precision engineering services revenue fell to SGD 182,000 in fiscal year 2019 from SGD 611,000 in fiscal year 2018, highlighting challenges in the market[23]. - The overall economic impact of COVID-19 on the semiconductor industry remains uncertain, affecting product demand[14]. - The COVID-19 pandemic has led to temporary shutdowns in Malaysia, which may impact the company's financial performance, though the extent is currently unquantifiable[55]. Operational Adjustments - The company plans to upgrade machinery and robotics to reduce production costs and improve productivity despite the challenging environment[14]. - The Malaysian manufacturing facility was temporarily shut down from March 18 to April 14, 2020, due to COVID-19 restrictions, affecting operations[14]. - The company is reviewing its operations and business activities to formulate long-term strategies for stability in a challenging market[14]. Corporate Governance - The company has maintained high standards of corporate governance to protect shareholder interests and enhance corporate value and accountability[73]. - The board of directors is responsible for the overall management and strategic direction of the company, overseeing operations in Singapore and Malaysia[75]. - The board includes three executive directors and three independent non-executive directors, ensuring a balanced governance structure[76]. - The company has adopted all provisions of the corporate governance code as per the Stock Exchange Listing Rules, except for one specific provision[74]. - The company has established a remuneration committee and a nomination committee to enhance corporate governance practices[86][89]. - The independent non-executive directors confirmed their independence in accordance with listing rules, ensuring compliance in financial reporting[78]. - The company has a commitment to transparency and regular communication with shareholders regarding governance practices[73]. - The board will conduct regular reviews to ensure compliance with corporate governance codes and make necessary recommendations[79]. Risk Management - The company maintains a robust risk management and internal control system, with annual reviews to ensure effectiveness and protect shareholder interests[99]. - An external professional consultant reviewed the internal control system, and the board found the risk management and internal control systems to be effective and sufficient[100]. Shareholder Information - As of December 31, 2019, the group's total equity attributable to owners was approximately SGD 39.5 million, slightly down from approximately SGD 39.7 million in FY2018[35]. - The current ratio as of December 31, 2019, was approximately 9.2 times, compared to approximately 6.9 times in FY2018[36]. - The company has a stock option plan that allows for the issuance of options up to a maximum of 10% of the total shares issued at the time of listing, subject to shareholder approval[156]. - The company did not grant any stock options since the adoption of the stock option plan, and there were no unexercised options as of December 31, 2019[156]. - The company has adopted a dividend policy allowing shareholders to participate in profits, with the board having full discretion over dividend declarations based on various factors[175]. - No final dividend was recommended for the fiscal year 2019[176]. Employee Relations - The company maintains good relationships with employees, offering competitive salaries and bonuses, and has an annual review mechanism for performance evaluation[162]. - The company participates in the Central Provident Fund Scheme and the Employees Provident Fund Scheme, with contributions of up to 13.0% for eligible employees in Malaysia[167]. Environmental and Quality Management - The company is committed to minimizing environmental impacts and has adopted an ISO standard environmental management system[187]. - The company has implemented an ISO 9001 certified quality management system and started using an enterprise resource planning system to improve efficiency[187]. - The quality control team conducts inspections at all stages of production to ensure compliance with quality standards[195]. - Any defects identified during production are documented in non-compliance reports and addressed immediately[195]. - In 2019, the company received the BisSAFE Level 4 certification from the Singapore Workplace Safety and Health Council, recognizing its efforts in occupational health and safety[188].

Financial Performance - Revenue for the six months ended June 30, 2019, was approximately SGD 5.0 million, a decrease of about 55.9% compared to SGD 11.3 million for the same period in 2018[5] - Profit for the six months ended June 30, 2019, was approximately SGD 6,000, compared to a loss of approximately SGD 0.2 million for the same period in 2018[5] - Earnings per share attributable to owners of the company for the six months ended June 30, 2019, was approximately SGD 0.0006, compared to a loss per share of approximately SGD 0.02 for the same period in 2018[5] - Gross profit for the six months ended June 30, 2019, was SGD 1.545 million, down from SGD 5.180 million in the same period of 2018[8] - The company reported a net financing income of SGD 88,000 for the six months ended June 30, 2019, compared to a net financing cost of SGD 45,000 in the same period of 2018[8] - Other comprehensive income for the six months ended June 30, 2019, was SGD 7,000, compared to a loss of SGD 156,000 for the same period in 2018[10] - The company reported a net profit of 6 thousand SGD for the period, compared to a loss of 157 thousand SGD in the same period of 2018[14] - The group recorded an operating loss of approximately 64,000 SGD for the six months ended June 30, 2019, compared to an operating profit of about 400,000 SGD in the same period of 2018, primarily due to a revenue decrease of approximately 6.3 million SGD[89] Assets and Liabilities - Total assets as of June 30, 2019, were SGD 44.889 million, compared to SGD 45.456 million as of December 31, 2018[12] - Total equity attributable to owners of the company was SGD 39.399 million as of June 30, 2019, compared to SGD 39.653 million as of December 31, 2018[12] - Non-current assets included property, plant, and equipment of SGD 12.934 million as of June 30, 2019, down from SGD 13.387 million as of December 31, 2018[12] - Current liabilities decreased to SGD 2.720 million as of June 30, 2019, from SGD 4.363 million as of December 31, 2018[12] - As of June 30, 2019, total lease liabilities amounted to SGD 2.11 million, significantly up from SGD 0.38 million as of December 31, 2018[70] - The debt-to-equity ratio as of June 30, 2019, was 0.06, compared to 0.02 on December 31, 2018, primarily due to lease liabilities increasing from approximately 0.4 million SGD to about 2.1 million SGD[100] Cash Flow - Net cash generated from operating activities for the six months ended June 30, 2019, was 2,316 thousand SGD, down from 5,270 thousand SGD in the same period of 2018, representing a decline of approximately 56%[16] - Cash and cash equivalents decreased by 598 thousand SGD, ending at 14,883 thousand SGD as of June 30, 2019, compared to 15,481 thousand SGD at the beginning of the year[16] - The company incurred a total cash outflow from investing activities of 2,670 thousand SGD for the six months ended June 30, 2019, compared to 2,288 thousand SGD in the previous year[16] - For the six months ended June 30, 2019, net cash generated from operating activities was approximately 2.3 million SGD, while net cash used in investing activities was about 2.7 million SGD[101] Revenue Sources - Revenue from sales of sheet metal products was SGD 4.89 million, accounting for 98.5% of total revenue, while precision engineering services contributed SGD 77, representing 1.5%[83] - The decline in revenue was primarily attributed to a decrease in orders for sheet metal products related to semiconductor manufacturing due to the US-China trade war and market deterioration[77] - Customer A contributed 542 thousand SGD to total revenue in 2019, down from 6,562 thousand SGD in 2018, while Customer B contributed 4,091 thousand SGD, up from 3,856 thousand SGD[52] Expenses - Cost of goods sold for the six months ended June 30, 2019, was 3,425 thousand SGD, compared to 6,099 thousand SGD in 2018, indicating a reduction of approximately 44%[55] - Employee benefits expenses, including director remuneration, were 2,060 thousand SGD for the six months ended June 30, 2019, slightly down from 2,098 thousand SGD in 2018[55] - Administrative expenses decreased by approximately 3.3 million SGD or 67.2% from about 4.9 million SGD in the six months ended June 30, 2018, to approximately 1.6 million SGD in the same period of 2019, mainly due to non-recurring listing expenses[88] Financial Risks and Governance - The company faces various financial risks, including market risk, credit risk, and liquidity risk, which are consistent with those disclosed in the annual financial statements[46] - The financial risk management policies have not changed since the end of the last fiscal year[47] - The company has not adopted any hedging arrangements to mitigate foreign exchange risks, which may impact its financial performance[113] - The company has complied with the corporate governance code, with the exception of the separation of the roles of Chairman and CEO[124] Shareholder Information - As of June 30, 2019, major shareholders KAL SG and KYL SG each hold 301,000,000 shares, representing 30.1% of the issued share capital[120] - Directors and key executives, including Mr. Chok Chung-fok and Ms. Wong Yuet-lin, also hold 301,000,000 shares each, accounting for 30.1% of the issued share capital[120] Future Plans - The company plans to enhance production capacity by upgrading machinery and robotic technology while actively seeking new customers[79] - The company aims to diversify its profit base and explore different investment opportunities to create sustainable returns for shareholders[80]

Financial Performance - FSM Holdings Limited reported a revenue of approximately SGD 19.8 million for the fiscal year ending December 31, 2018, with a gross profit of SGD 8.6 million and a profit before tax of SGD 3.0 million[33]. - The company achieved a profit attributable to shareholders of SGD 6.3 million for the fiscal year 2018, compared to SGD 6.1 million for the previous year, reflecting a year-on-year increase of approximately 3.3%[33]. - The group's revenue decreased to approximately SGD 19.8 million for the fiscal year ended December 31, 2018, down 4.8% from approximately SGD 20.8 million for the fiscal year ended December 31, 2017[45]. - Revenue from sales of sheet metal products fell by approximately SGD 0.8 million or 4.0% to SGD 19.2 million, while revenue from precision mechanical services decreased by approximately SGD 0.2 million or 25.0% to SGD 0.6 million[45]. - The group recorded an annual profit of approximately 2.1 million SGD for the year ended December 31, 2018, down from about 6.1 million SGD in 2017; excluding listing expenses, profit would have been approximately 6.3 million SGD, an increase of about 0.2 million SGD[58]. - The gross profit for the fiscal year ended December 31, 2018, was approximately SGD 8.6 million, an increase of about SGD 0.4 million, resulting in a gross margin of approximately 43.4% compared to 41.2% in the previous year[52]. Strategic Initiatives - FSM Holdings successfully raised net proceeds of HKD 95.2 million from its listing on the Hong Kong Stock Exchange on July 16, 2018, which will be used to expand production capacity and enhance automation[32]. - The company plans to expand its operational scale by increasing production capacity and implementing greater automation to achieve higher efficiency[40]. - FSM Holdings plans to focus on enhancing its capabilities and competitiveness in the medium to long term, despite external threats from trade tensions[34]. - The company aims to improve its production efficiency and quality assurance capabilities as part of its strategic priorities for the upcoming fiscal periods[32]. Market Conditions - The International Monetary Fund projected a global growth rate of 3.5% for 2019, amidst uncertainties in trade policies and market sentiments, which may impact FSM's business outlook[34]. - The market drivers for the precision metal parts market in Singapore include government initiatives to boost domestic manufacturing and support for R&D in the coming years[45]. Corporate Governance - The company has adopted all provisions of the Corporate Governance Code as per the Listing Rules, ensuring high standards of corporate governance to protect shareholder interests[99]. - The company has complied with the Corporate Governance Code provisions from the listing date on July 16, 2018, to December 31, 2018, except for provision A.2.1[99]. - The company is committed to maintaining high levels of corporate governance to enhance corporate value and accountability[99]. - The board of directors consists of three executive directors and three independent non-executive directors, ensuring a balanced governance structure[101]. - The company has a strong focus on internal controls and risk management as part of its governance framework[99]. Financial Position - As of December 31, 2018, the total equity attributable to the company's owners was approximately 39.7 million SGD, up from 17.3 million SGD in 2017[61]. - The group's current assets net amounted to approximately 25.8 million SGD as of December 31, 2018, compared to 4.4 million SGD in 2017[63]. - The current ratio was approximately 6.9 times as of December 31, 2018, compared to 1.5 times in 2017[63]. - The group had no significant contingent liabilities as of December 31, 2018[68]. Employee and Management - The group employed 151 full-time employees as of December 31, 2018, down from 184 employees in 2017[71]. - The company has a mechanism in place for annual performance reviews to assess employee performance, which serves as a basis for salary increases and bonuses[179]. - The management team includes experienced professionals with backgrounds in finance, accounting, and business development, ensuring effective oversight of operations[92][96][97]. Risks and Challenges - The company experienced challenges in demand for its sheet metal products during the fiscal year, yet managed to navigate through these difficulties successfully[33]. - The group faced significant risks and uncertainties, which are detailed in the "Management Discussion and Analysis" section of the annual report[142]. Shareholder Relations - The company ensures effective and timely communication with shareholders, with all corporate communications available on its website[129]. - The board acknowledges its responsibility for ensuring the integrity of sustainability reporting[199]. - This is the first environmental, social, and governance report for FSM Holdings Limited, covering performance for the fiscal year ended December 31, 2018[200].