Performance Recovery - The group has achieved a gradual recovery in performance, approaching pre-pandemic levels, benefiting from strong competitiveness in local industrial real estate projects[7] - The company anticipates stable growth in 2023, with a focus on expanding local market share and restarting overseas business initiatives that were paused due to the pandemic[9] - The group expresses confidence in achieving substantial progress in overseas business as it resumes efforts that were previously on hold[9] - The construction industry in Singapore grew by 2.1% in 2022, reaching SGD 35,197 million, recovering to pre-pandemic activity levels[23] - The construction demand in Singapore is expected to recover in 2023, with projected annual total construction demand between SGD 25 billion and SGD 32 billion from 2023 to 2026[42] Financial Performance - The group's revenue for the fiscal year increased by approximately 7.64%, rising from about SGD 188.5 million to approximately SGD 202.9 million[27] - The gross profit surged from a loss of approximately SGD 1.05 million in the previous year to a profit of SGD 12.1 million, with a gross margin improvement from -0.56% to 5.96%[27] - The net loss after tax was approximately SGD 424,000, a 92% improvement compared to a loss of SGD 4.9 million in the previous period[31] - Administrative expenses decreased from approximately SGD 7.47 million to SGD 6.87 million, primarily due to reduced depreciation and staff reallocation[29] - The group anticipates a tax refund of approximately SGD 2.1 million due to increased operating income and provisions for foreseeable losses[30] Project Management - New projects awarded during the year have compensated for earlier projects significantly impacted by the pandemic, reflecting careful risk assessment[7] - The group maintained a cautious approach to project bidding, focusing on selective opportunities amid ongoing challenges[24] - The company plans to actively bid for new projects in its specialized segments and streamline resources for potential large industrial projects expected to be awarded in Q1 to Q2 2023[45] - The group secured two new projects in the second half of 2022, valued at SGD 314.60 million and SGD 14.90 million, respectively[24] - The group's order book remained robust at SGD 434.43 million as of December 31, 2022[24] Governance and Compliance - The company has adopted and complied with all applicable provisions of the Corporate Governance Code, except for the separation of the roles of Chairman and CEO[59] - The board consists of five members, with independent non-executive directors making up 60% of the board, ensuring a balanced governance structure[64] - The audit committee, established on April 19, 2018, consists of three independent non-executive directors and is responsible for overseeing financial reporting and risk management[75] - The company has established compliance procedures to ensure adherence to applicable laws and regulations, particularly those significantly impacting the group[131] - The board is responsible for reviewing and approving the effectiveness and appropriateness of the company's risk management and internal control systems[98] Employee and Shareholder Relations - The company acknowledges the contributions of shareholders, directors, executives, and employees in the past year, emphasizing teamwork for future growth[9] - Total employee costs for the fiscal year amounted to approximately SGD 29 million, up from SGD 27 million in the previous year[41] - The company aims to maintain a gender ratio of approximately 3:1 (male to female) among employees, despite the construction industry's historical lack of female talent in Singapore[71] - The company has adopted a board diversity policy, focusing on skills, experience, and diverse perspectives in candidate selection[71] - The company emphasizes maintaining good relationships with employees, customers, and subcontractors, conducting regular feedback channels to improve service quality[132] Environmental and Social Responsibility - The company has adopted an environmental policy that includes compliance with ISO 9001, ISO 45001, and ISO 14001 standards[129] - HPC is committed to designing and constructing sustainable buildings, focusing on user safety and reducing environmental impacts during construction and operation[193] - The company has established an environmental, health, and safety (EHS) committee and environmental control officers (ECO) at all project sites to ensure compliance with environmental policies[194] - The company aims to integrate sustainable design into its construction projects, seeking BCA Green Mark certification[197] - The company promotes waste reduction through recycling and reusing activities[196] Risk Management - The company faces various risks and uncertainties that could impact its business and financial performance[126] - The company has a risk management policy in place to identify, assess, and manage key risks affecting the business[97] - A review of the internal control effectiveness was conducted by Virtus Assure Pte Ltd, with no significant concerns affecting financial, operational, compliance, or risk management identified[100] - The audit committee is tasked with reviewing the integrity of financial statements and ensuring the independence of external auditors[76] - The company conducts regular reviews and improvements of its anti-money laundering policies and internal controls[183]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全 部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 HPC HOLDINGS LIMITED （在開曼群島註冊成立的有限公司） （股份代號：1742） 截 至 二 零 二 二 年 十 月 三 十 一 日 止 年 度 的 年 度 業 績 公 告 HPC Holdings Limited（「本公司」或「HPC」）董事（「董事」）會（「董事會」）宣佈本公司及 其附屬公司（統稱「本集團」）截至二零二二年十月三十一日止財政年度（「本財政 年度」）的經審核綜合業績連同二零二一年相應期間（「過往期間」）的比較數字。 管理層討論及分析 業務回顧 於二零二二年，由於基礎設施及建築領域不斷增長，新加坡建築業已恢復至疫 情前的活動水平且二零二二年第二季度建築業產出錄得3.3%的增幅，而二零 二二年第一季度則錄得2.4%的增幅。總體而言，新加坡的建築業於二零二二年 增長2.1%，達到35,197百萬新加坡元。 然而，新加坡建築業仍遭受勞工短缺問題的阻礙，且俄烏戰爭亦造成油價上漲 ...

Financial Performance - For the six months ended April 30, 2022, the group's revenue decreased by approximately 34.78%, from about SGD 116.90 million to approximately SGD 76.24 million[12]. - The group's gross profit declined from approximately SGD 9.50 million for the six months ended April 30, 2021, to SGD 2.75 million, representing a decrease of about 71.05%[12]. - The gross profit margin fell to 3.61% during the current period, compared to 8.13% in the previous period[12]. - The group recorded a net loss of approximately SGD 1.02 million for the current period, a decrease of about 121.80% compared to a net profit of SGD 4.68 million in the previous period[17]. - Total revenue for the six months ended April 30, 2022, was SGD 76,245,000, a decrease of 34.8% compared to SGD 116,901,000 for the same period in 2021[60]. - Gross profit for the same period was SGD 2,749,000, down 71.1% from SGD 9,504,000 year-over-year[60]. - The company reported a loss before tax of SGD 1,921,000, compared to a profit of SGD 4,773,000 in the previous year[60]. - Basic and diluted loss per share was SGD 0.06, a decline from earnings of SGD 0.30 per share in the prior year[60]. - The company reported a loss attributable to owners of SGD 891,000 for the six months ended April 30, 2022, compared to a profit of SGD 4,742,000 in the same period of 2021, representing a significant decline[98]. Liquidity and Financial Position - As of April 30, 2022, the current ratio of the group was 2.5, compared to 2.4 on October 31, 2021, indicating strong liquidity management[20]. - The debt-to-equity ratio increased to 20.26% as of April 30, 2022, from 14.2% on October 31, 2021, primarily due to the drawdown of construction loans for the redevelopment project at 7 Kung Chong Road, Singapore[21]. - Total assets as of April 30, 2022, were SGD 146,509,000, a slight decrease from SGD 148,960,000 as of October 31, 2021[62]. - Total liabilities decreased to SGD 62,692,000 from SGD 64,124,000 year-over-year[62]. - Cash and cash equivalents were SGD 19,998,000, down from SGD 30,799,000 in the previous year[61]. - The company’s equity attributable to owners was SGD 83,827,000, a decrease from SGD 84,718,000 in the previous year[62]. Operational Highlights - The group maintained a robust order level of SGD 269 million as of April 30, 2022[8]. - The group successfully secured an additional contract for the LOGOS warehouse expansion and renovation, valued at SGD 27.36 million[8]. - The group has five ongoing projects, with expected completions ranging from Q4 2022 to Q2 2024[10]. - The company plans to focus on improving operational efficiency and exploring new market opportunities to enhance future performance[60]. Corporate Governance - The Audit Committee has reviewed the unaudited interim financial statements for the six months ended April 30, 2022, and confirmed compliance with applicable standards and regulations[43]. - The company has adopted the corporate governance code as per the listing rules, except for the separation of roles between the Chairman and CEO, which is currently held by Mr. Wang Yingde[40]. - The company emphasizes the importance of good corporate governance to fulfill its responsibilities to shareholders and enhance shareholder value[40]. - The Audit Committee consists of three independent non-executive directors, ensuring effective oversight of financial reporting and internal controls[42]. Market Outlook - The construction demand in Singapore is forecasted to be between SGD 27 billion and SGD 32 billion for the year, excluding major developments like Marina Bay Sands and Sentosa Development[31]. - The semiconductor manufacturing sector is expected to see significant investment interest due to global chip shortages and strong infrastructure support in Singapore[32]. - The group remains cautiously optimistic about future performance as global social restrictions ease and national borders reopen, despite challenges from rising construction material costs[35]. Cash Flow and Investments - Operating cash flow before changes in working capital was SGD 3,834,000, down from SGD 6,558,000 year-on-year[65]. - Net cash used in operating activities was SGD 10,137,000, an improvement from SGD 11,750,000 in the previous year[66]. - The company incurred a net cash outflow from investing activities of SGD 5,613,000, compared to SGD 2,844,000 in the prior year[66]. - Financing activities generated a net cash inflow of SGD 4,952,000, a significant increase from a net outflow of SGD 938,000 in the previous year[66]. Shareholder Information - The company has a total of 1,600,000,000 shares issued as of April 30, 2022[48]. - Mr. Wang Yingde holds 660,000,000 shares, representing approximately 41.25% of the issued share capital, while Mr. Shi Jianhua holds 540,000,000 shares, representing approximately 33.75%[47]. - The company has adopted a share option scheme allowing for the issuance of up to 160 million shares, representing 10% of the shares listed on the Hong Kong Stock Exchange[36].

Financial Performance - For the six months ended April 30, 2022, the group's revenue decreased by approximately 34.78%, from about SGD 116.90 million to approximately SGD 76.24 million[8]. - The group's gross profit declined from approximately SGD 9.50 million for the six months ended April 30, 2021, to SGD 2.75 million, representing a decrease of about 71.05%[8]. - The gross profit margin fell to 3.61% for the current period, compared to 8.13% for the previous period[8]. - The group recorded a net loss of approximately SGD 1.02 million, a decrease of about 121.80% compared to a net profit of SGD 4.68 million in the previous period[13]. - The company reported unaudited revenue of SGD 76,245,000 for the six months ended April 30, 2022, a decrease of 34.8% compared to SGD 116,901,000 for the same period in 2021[46]. - Gross profit for the same period was SGD 2,749,000, down 71.1% from SGD 9,504,000 year-on-year[46]. - The company incurred a net loss attributable to owners of SGD 891,000, compared to a profit of SGD 4,742,000 in the previous year[46]. - The company reported a pre-tax loss of SGD 1,921 thousand for the six months ended April 30, 2022, compared to a profit of SGD 4,773 thousand in the same period of 2021[66]. - The company reported a profit of SGD 4,742 thousand for the six months ended April 30, 2021, while the profit for the same period in 2022 was not specified, indicating a potential decline in profitability[51]. Expenses and Costs - Administrative expenses decreased from approximately SGD 3.71 million to SGD 3.45 million, a reduction of about SGD 254,000[11]. - Total employee costs for the six months ended April 30, 2022, amounted to approximately SGD 13.9 million, slightly up from SGD 13.8 million in 2021[24]. - Other income decreased by approximately SGD 193,000 due to reduced government subsidies related to COVID-19[9]. - The company is facing challenges such as rising construction material costs and project cost overruns, impacting gross margins[30]. - The company recorded current tax expenses of SGD 37,331,000 for the six months ended April 30, 2022[6]. - Deferred tax expenses for the same period were recorded as a credit of SGD 797,000[6]. Assets and Liabilities - Total assets as of April 30, 2022, were SGD 146,509,000, a slight decrease from SGD 148,960,000 as of October 31, 2021[47]. - Trade receivables decreased to SGD 33,701,000 from SGD 45,229,000, indicating a reduction of 25.5%[47]. - Current liabilities were reported at SGD 45,577,000, down from SGD 49,445,000, reflecting a decrease of 7.1%[47]. - The company's cash and cash equivalents stood at SGD 19,998,000, down from SGD 30,799,000, a decline of 35.2%[47]. - Total liabilities decreased from SGD 64,124 thousand in 2021 to SGD 62,692 thousand in 2022, a reduction of approximately 2.2%[48]. - The company's retained earnings decreased from SGD 39,188 thousand in 2021 to SGD 38,297 thousand in 2022, a decline of about 2.3%[51]. - The total cash outflow related to leases for the six months ended April 30, 2022, was SGD 58,700,000, down from SGD 117,000,000 for the same period in 2021[111]. Cash Flow and Financing - Operating cash flow before changes in working capital was SGD 3,834 thousand in 2022, down from SGD 6,558 thousand in 2021, representing a decrease of approximately 41.5%[54]. - The net cash used in operating activities was SGD (10,137) thousand in 2022, compared to SGD (11,750) thousand in 2021, indicating an improvement of about 13.8%[55]. - The net cash inflow from financing activities was SGD 4,952,000, a substantial improvement from a net outflow of SGD 938,000 in the prior year, reflecting enhanced financing capabilities[56]. - The company reported a significant increase in deposits from SGD 1,544,000 in October 2021 to SGD 2,200,000 in April 2022, which is an increase of about 42.5%[94]. - The company reported a net cash inflow from bank borrowings of SGD 5,003,000, contrasting with a net repayment of SGD 835,000 in the previous year, highlighting a shift towards leveraging debt for growth[56]. Projects and Operations - The group maintained a healthy order book level of SGD 269 million as of April 30, 2022[4]. - The group successfully secured an additional engineering project with a contract value of SGD 27,360,429 for the LOGOS warehouse expansion and renovation[4]. - The group has five ongoing projects, with expected completions in Q4 2022 and Q1 2023 for various developments[6]. - The construction demand in Singapore is forecasted to be between SGD 27 billion and SGD 32 billion for the year, excluding any developments related to Marina Bay Sands and Sentosa Development projects[27]. - The group has implemented effective cost management and is gradually introducing low-risk loan financing to optimize capital costs[15]. Market and Economic Conditions - The group remains optimistic about financial performance improving in the next period despite ongoing challenges[7]. - The group remains cautiously optimistic about future performance as global social restrictions ease and borders reopen[30]. - Manufacturing sector growth was reported at 75% in 2021, driven by strong demand for semiconductors and continued growth in e-commerce and biomedical sectors[28]. - Rental rates for cold storage logistics warehouses have increased significantly, exceeding the growth seen in 2021 due to high demand and limited logistics space in Singapore[29]. Governance and Compliance - The company has adopted and complied with the corporate governance code, except for the separation of roles between the Chairman and CEO[36]. - The audit committee has reviewed the financial performance for the interim period, particularly the impact of COVID-19 on operations[38]. - The company has adopted all new and revised International Financial Reporting Standards (IFRS) effective from November 1, 2021, with no significant impact on the interim financial statements[60]. - The company is preparing for the adoption of new accounting standards that may affect future financial reporting, although they are not expected to have a significant impact on the financial statements for the first year of application[61]. Shareholder Information - The group has adopted a share option plan allowing for the issuance of up to 160 million shares, representing 10% of the company's shares listed on the Hong Kong Stock Exchange[32]. - As of April 30, 2022, there were no share options granted or unexercised[33]. - The company did not declare any dividends for the six months ended April 30, 2022[76].

Financial Performance - The financial performance for the fiscal year ending October 31, 2021, remains in a loss position, similar to the previous period [28]. - The group's revenue increased by 27.81% to approximately SGD 188.5 million from about SGD 147.5 million in the previous fiscal year [29]. - Gross profit declined to a loss of SGD 1.05 million, with a gross margin of -0.56%, down from a profit of approximately SGD 402,000 and a margin of 0.27% in the previous year [29]. - Other income decreased by approximately SGD 3 million due to reduced government subsidies as the economy gradually recovered [30]. - The company recorded a net loss of approximately SGD 5.0 million after tax, a decrease of SGD 341,000 or about 7.4% compared to the previous period [33]. - The company incurred a financial asset impairment loss of SGD 3.00 million for trade receivables, significantly higher than SGD 0.55 million in the prior year [181]. - The net loss for the year was SGD 4.96 million, slightly higher than the loss of SGD 4.62 million in the previous year [181]. - For the fiscal year ending October 31, 2021, the company reported a pre-tax loss of SGD 5,983,000, compared to a loss of SGD 5,332,000 in the previous year, indicating an increase in losses of approximately 12.3% [191]. Market Outlook - The company anticipates a V-shaped recovery in 2022, driven by a resilient economy and government policies in Singapore [9]. - The construction demand in Singapore is expected to steadily rise in the medium term, with public sector contributions projected to be between SGD 14 billion and SGD 18 billion annually from 2022 to 2025 [47]. - Private sector construction demand is anticipated to reach between SGD 11 billion and SGD 14 billion annually during the same period, contingent on successful COVID-19 treatment and vaccine deployment [47]. - The ongoing uncertainty in the market has led to irrational bidding strategies among some construction firms, exacerbating risks [7]. - The company is committed to strengthening its position in the fiscal year 2022 to reverse the poor performance of the fiscal year 2021 [48]. Operational Challenges - The construction industry faced significant challenges due to the pandemic, leading to increased labor and material costs, impacting project risks [7]. - The construction industry is expected to face a potential cost increase of 10% to 15% due to labor shortages and rising material costs [25]. - Due to COVID-19, the project completion date has been delayed to May 2022, with an expected increase in final construction costs [149]. - The Singapore government granted a general extension of 122 days for projects affected by COVID-19, which means DHC Construction is not expected to incur any penalty payments [150]. Corporate Governance - The company has adopted and complied with all applicable corporate governance codes as per the Hong Kong Stock Exchange [50]. - The board of directors consists of five members, with independent non-executive directors making up 60% of the board, ensuring a balanced and independent judgment [55]. - The company adopted a board diversity policy, emphasizing the importance of diverse skills, experiences, and perspectives in board appointments [62]. - The audit committee, established on April 19, 2018, consists of three independent non-executive directors, ensuring oversight of financial reporting and risk management [67]. - The company has established a governance framework to ensure effective oversight and accountability among its directors [80]. Employee and Operational Metrics - Employee costs totaled approximately SGD 27 million, up from SGD 26 million in the previous year [45]. - The group employed 861 staff members as of October 31, 2021, including foreign workers [44]. - The current ratio improved to 2.4 from 2.2 year-on-year, indicating better liquidity management [36]. - The debt-to-equity ratio decreased to 14.2% from 20.2%, primarily due to the repayment of a temporary transitional loan [37]. Shareholder Information - The company did not recommend a final dividend for the fiscal year [111]. - As of October 31, 2021, the company's distributable reserves included a share premium of SGD 69,777,000 and accumulated losses of SGD (6,153,000) [118]. - The company has maintained its capital development and operational balance while considering dividend payments [102]. Project and Contract Information - The company reported a project contract value exceeding SGD 300 million, indicating a strong pipeline for future growth [9]. - HPC secured contracts totaling SGD 151.46 million in 2021, a decrease of SGD 40 million compared to SGD 356 million in the same period of 2020 [25]. - The total contract amount for the project awarded to DHC Construction is SGD 6,806,725 [147]. - DHC Construction will be responsible for rebuilding the property into a seven-story industrial building [148]. Financial Position - Total revenue for the fiscal year ended October 31, 2021, was SGD 188.51 million, an increase of 27.8% from SGD 147.49 million in the previous year [181]. - Total assets decreased to SGD 148.96 million from SGD 172.08 million, a decline of 13.4% [183]. - The company's equity attributable to owners decreased to SGD 84.72 million from SGD 89.40 million, a decrease of 5.9% [186]. - The company has not adopted any new accounting standards that would have a significant impact on its financial performance or position for the current fiscal year [197].

Revenue and Financial Performance - The group's revenue for the fiscal year increased by 27.81%, from approximately SGD 147.5 million to approximately SGD 188.5 million[9]. - The group completed contract works amounting to approximately SGD 189 million in the fiscal year, compared to SGD 147 million in the previous period, indicating a recovery in output[6]. - The group recorded a net loss after tax of approximately SGD 5.0 million, a decrease of SGD 341,000 or about 7.4% compared to the previous period[14]. - The gross profit for the fiscal year declined to a loss of SGD 1.05 million, with a gross margin decrease of 0.83 percentage points to -0.56%[9]. - Total revenue for the fiscal year ended October 31, 2021, was SGD 188.51 million, an increase of 27.8% from SGD 147.49 million in 2020[46]. - Cost of sales for the same period was SGD 189.56 million, up from SGD 147.09 million, resulting in a gross loss of SGD 1.05 million compared to a gross profit of SGD 0.40 million in 2020[46]. - The company reported a net loss of SGD 4.96 million for the year, slightly higher than the net loss of SGD 4.62 million in 2020[46]. - The group reported a pre-tax loss of (5,983) thousand SGD in 2021, compared to a loss of (5,332) thousand SGD in 2020, reflecting a decline of about 12.2%[75]. - The company reported a loss attributable to owners of SGD 4,682,000 in 2021, compared to a loss of SGD 4,569,000 in 2020[79]. Contracts and Order Book - The total value of contracts awarded to the group was SGD 151.46 million, a decrease from SGD 356 million in the previous year, with a current order book of SGD 316 million[4]. - The group is actively competing for new projects in its specialized market segments, with potential large industrial projects expected to be awarded in Q1 to Q2 of 2022[7]. - The total amount of unfulfilled performance obligations in construction contracts was SGD 315,596,000 in 2021, down from SGD 356,164,000 in 2020, a decrease of 11.4%[100]. Expenses and Cost Management - Administrative expenses were reduced from approximately SGD 12.9 million to SGD 7.4 million, reflecting a significant decrease due to the absence of idle costs[12]. - The company's equity attributable to owners decreased to SGD 84.72 million from SGD 89.40 million in the previous year[50]. - The group has effectively managed cash flow and cost management, ensuring no liquidity issues are anticipated[16]. - The Group's administrative expenses decreased to SGD 7,471,000 in 2021 from SGD 12,953,000 in 2020, a reduction of 42.5%[64]. Assets and Liabilities - Total assets as of October 31, 2021, were SGD 172.08 million, down from SGD 148.96 million in 2020[49]. - Current liabilities decreased to SGD 64.92 million from SGD 49.45 million, while total liabilities decreased from SGD 82.28 million to SGD 64.12 million[50]. - Cash and cash equivalents decreased significantly to SGD 30.80 million from SGD 63.00 million[49]. - The carrying amount of right-of-use assets decreased from SGD 1,767,000 in 2020 to SGD 879,000 in 2021, with depreciation of SGD 120,000 in both years[108][110]. Employee and Compensation - Total employee costs for the fiscal year amounted to approximately SGD 27 million, an increase from SGD 26 million in the previous year[26]. - The group has 861 employees as of October 31, 2021, including foreign workers[26]. - Employee compensation, including directors' remuneration, totaled 27,424 thousand SGD in 2021, up from 26,094 thousand SGD in 2020, an increase of approximately 5.1%[71]. Government and Economic Outlook - The construction industry in Singapore is projected to have a total construction demand between SGD 23 billion and SGD 28 billion for 2021, an increase from SGD 21.3 billion in 2020[3]. - The public sector is expected to contribute between SGD 14 billion and SGD 18 billion annually to construction demand from 2022 to 2025[29]. - Private sector construction demand is projected to reach SGD 11 billion to SGD 14 billion annually during the same period[29]. - The overall construction industry in Singapore grew by 18.7% in 2021, recovering from a 35.9% contraction in 2020[31]. Financial Management and Governance - The company has complied with the corporate governance code and has established an audit committee consisting of three independent non-executive directors[39]. - The independent auditor confirmed that the consolidated financial statements for the fiscal year are consistent with applicable standards and regulations[41]. - The company did not purchase, sell, or redeem any of its listed securities during the fiscal year[42]. Investments and Acquisitions - The group acquired 100% equity of Aasperon Venture Pte Ltd for SGD 3.8 million, which will be used to develop worker accommodation facilities[24]. - The group sold 100% equity of Aasperon Venture Pte Ltd for SGD 4.2 million on May 4, 2021[25]. - The identifiable asset of Aasperon Venture Pte. Ltd. at the acquisition date was a leased building with a fair value of SGD 3,800,000[118]. Cash Flow and Financing - The group has obtained a temporary transitional loan of SGD 5 million from the Singapore government to support operational funding needs during the pandemic[18]. - The cash balance in bank accounts decreased significantly from SGD 46,962,000 in 2020 to SGD 15,709,000 in 2021, a drop of 66.6%[102]. - The company’s bank loans due in 2035 amounted to SGD 720,000 in 2021, unchanged from 2020, while transitional loans due in 2025 decreased from SGD 956,000 to zero[112][114].

Financial Performance - Revenue for the six months ended April 30, 2021, increased by 27.81% to approximately SGD 116.90 million from approximately SGD 91.46 million in the corresponding period of 2020[11]. - Gross profit rose by approximately 29.13% from about SGD 7.36 million to SGD 9.50 million, with a stable gross margin of 8.13% compared to 8.05% in the previous period[11]. - The company recorded a net profit of approximately SGD 4.68 million, an increase of about 12.78% or SGD 0.53 million compared to the previous period[16]. - Revenue for the six months ended April 30, 2021, was SGD 116.901 million, an increase of 27.8% compared to SGD 91.462 million for the same period in 2020[61]. - Gross profit for the same period was SGD 9.504 million, representing a gross margin of 8.1%[61]. - The company reported a net profit of SGD 4.675 million, up from SGD 4.150 million in the previous year, reflecting a growth of 12.7%[61]. Order Book and Projects - The total contract value of two new projects, Ten League Warehouse and Global Indian International School, amounted to SGD 120.40 million, raising the order book to SGD 408.35 million as of April 30, 2021[7]. - The group has a robust order book valued at SGD 408.35 million as of April 30, 2021, providing flexibility to select better projects in the coming months[34]. - The construction demand in Singapore for 2021 is projected to be between SGD 23 billion and SGD 28 billion, with the public sector expected to account for 65% of this demand[31]. Financial Position and Liquidity - The current ratio improved to 2.5 as of April 30, 2021, compared to 2.2 as of October 31, 2020, indicating strong liquidity[19]. - Total assets as of April 30, 2021, were SGD 165.873 million, a decrease from SGD 172.075 million as of October 31, 2020[62][63]. - Current liabilities decreased to SGD 53.747 million from SGD 64.918 million, indicating improved liquidity[63]. - The company’s cash and cash equivalents were SGD 47.470 million, down from SGD 63.002 million, highlighting a reduction in cash reserves[62]. - The group received a temporary transitional loan of SGD 5 million from the Singapore government to assist with operational funding needs, with a term of five years[20]. Expenses and Costs - Administrative expenses decreased from approximately SGD 4.86 million to SGD 3.71 million, a reduction of about SGD 1.15 million due to the recovery of business activities[14]. - Total employee costs for the six months ended April 30, 2021, amounted to approximately SGD 13.8 million, a slight decrease from SGD 14.1 million in 2020[28]. - The company incurred material, subcontractor, and other construction costs amounting to SGD 95.677 million for the six months ended April 30, 2021, compared to SGD 72.528 million in the previous year[95]. Corporate Governance and Compliance - The audit committee reviewed the interim financial results for the six months ending April 30, 2021, and confirmed that the financial statements were prepared in accordance with applicable standards and regulations[42]. - The company has adopted and complied with all applicable provisions of the Corporate Governance Code, except for the separation of roles between the Chairman and the CEO, which is currently held by the same individual[40]. - The company has confirmed compliance with the Securities Trading Code for directors during the six-month period ending April 30, 2021[38]. Share Capital and Dividends - The company did not declare any interim dividend for the six months ended April 30, 2021[17]. - The company has adopted a share option scheme allowing the issuance of up to 160 million shares, representing 10% of the shares listed on the Hong Kong Stock Exchange[36]. - The company’s issued and paid-up share capital remained at SGD 2,725,000 with 1,600,000 shares as of April 30, 2021[161]. Debt and Borrowings - The group's total borrowings as of April 30, 2021, resulted in a debt-to-equity ratio of 18.24%, down from 20.24% on October 31, 2020, primarily due to timely repayment of borrowings[20]. - The total borrowings as of April 30, 2021, were SGD 13,945,000, slightly down from SGD 14,780,000 as of October 31, 2020[156]. - The company has a total of SGD 12,269,000 in non-current borrowings, which decreased from SGD 13,104,000 in the previous year[156]. Employee and Health Measures - As of the report date, nearly 42% of the group's employees have been vaccinated against COVID-19, with an expectation to reach 100% vaccination by the end of August 2021[30]. Cash Flow and Investments - Operating cash flow before changes in working capital decreased to SGD 3,558,000 in 2021 from SGD 6,695,000 in 2020, reflecting a decline of approximately 47%[66]. - The company experienced a net cash outflow of SGD 15,532,000 in the six months ended April 30, 2021, compared to a net cash inflow of SGD 17,110,000 in the same period of 2020[67]. - Interest income increased to SGD 428,000 in 2021 from SGD 75,000 in 2020, suggesting improved financial management or investment returns[66]. Trade Receivables and Credit Management - Trade receivables increased to SGD 56,610,000 as of April 30, 2021, compared to SGD 44,886,000 as of October 31, 2020, representing a growth of approximately 26.5%[117]. - The provision for expected credit losses on trade receivables increased to SGD 4,150,000 as of April 30, 2021, from SGD 1,150,000 as of October 31, 2020[126]. - The overdue but not impaired trade receivables amounted to SGD 20,198,000 as of April 30, 2021, down from SGD 22,643,000 as of October 31, 2020, indicating a decrease of approximately 10.8%[124].

COVID-19 Impact and Recovery - The company faced significant impacts on its performance due to the COVID-19 pandemic, particularly in the construction sector, which was one of the hardest hit industries in Singapore [7]. - Despite the challenges, the company is optimistic about a rebound in 2021, supported by over SGD 300 million in project contracts [9]. - The company plans to expand its local market share while also attempting to restart overseas business initiatives that were postponed due to the pandemic [9]. - The management has taken proactive measures to mitigate risks and is preparing for potential uncertainties in the future [9]. - The company anticipates that productivity and demand in the construction industry will improve as the pandemic is brought under control [8]. - The company is committed to achieving a V-shaped recovery in its operational performance in 2021 [9]. - The government of Singapore has announced a vaccination timeline, which is expected to facilitate a return to normalcy in the construction sector [8]. - The company aims to strengthen its position in 2021 to reverse the poor performance of 2020, provided that COVID-19 does not resurge [47]. Financial Performance - The group’s revenue for the fiscal year decreased by 31.56%, from approximately SGD 215.5 million to approximately SGD 147.5 million due to the pandemic and circuit breaker measures [29]. - Gross profit fell by approximately 98.0%, from about SGD 25.96 million to SGD 0.402 million, with a gross margin decline of 11.78 percentage points to 0.27% [29]. - Other income increased by over SGD 6 million, primarily due to government subsidies to help businesses cover pandemic-related costs [30]. - Administrative expenses rose from approximately SGD 8.4 million to SGD 12.9 million, an increase of about SGD 4.5 million, mainly due to additional costs incurred during the shutdown [31]. - The company recorded a net loss after tax of approximately SGD 4.6 million, a decrease of SGD 19.4 million or about 131% compared to the previous period [33]. - The current ratio improved from 2.3 to 2.6, indicating a stable liquidity position [36]. - The debt-to-equity ratio increased from 11.8% to 20.2%, primarily due to temporary transitional loans provided by the Singapore government [37]. Project and Contract Updates - The company completed S$147 million in contract works during the fiscal year, down from S$215 million in the previous period [26]. - The company secured three new projects with a total contract value of S$179 million, compared to S$186 million in the previous period [26]. - The order book remains at a high level of S$356 million, supported by two large projects (REC and HDB C6) despite a decrease in new projects [26]. - The company is actively participating in tenders for new projects, with several large industrial projects expected to be awarded in Q1 2021 [26]. - The company successfully obtained a temporary occupancy permit for the North London Collegiate School, allowing operations to commence in January 2021 [26]. - The project completion date has been delayed to September 2021 due to COVID-19, with an expected increase in final construction costs [154]. Workforce and Employee Management - The company faced a 15% reduction in workforce due to COVID-19, significantly impacting project progress [25]. - Total employee costs for the fiscal year were approximately SGD 26 million, down from SGD 29 million in the previous year [45]. - The group employed 1,081 employees as of October 31, 2020, including foreign workers [44]. Corporate Governance - The board held four meetings during the fiscal year, including the approval of the annual performance announcement and the interim performance report for the six months ending April 30, 2020 [58]. - All directors attended 100% of the board meetings, with attendance recorded as 4/4 for each of the five active directors [60]. - The company adopted a board diversity policy, emphasizing the importance of diverse skills, experiences, and perspectives among board members [61]. - The audit committee, established on April 19, 2018, consists of three independent non-executive directors and is responsible for reviewing the integrity of financial statements and overseeing risk management [66][67]. - The company has committed to providing ongoing professional development for directors, ensuring they are well-informed about their responsibilities and the company's operations [60]. - The chairman and CEO roles are held by the same individual, Mr. Wang Yingde, which is noted as a deviation from corporate governance guidelines [63]. - The company has established four board committees to monitor various aspects of governance, including an audit committee and a remuneration committee [65]. Environmental and Social Responsibility - The company emphasizes ethical responsibility in its operations and has implemented measures to reduce environmental pollution [122]. - The company has a compliance program in place to adhere to applicable laws and regulations in Singapore, Cayman Islands, and Hong Kong [123]. - The company is committed to sustainable building practices, adhering to local environmental regulations and implementing green policies [193]. - The company has established an Environment, Health, and Safety (EHS) committee at all project sites to ensure compliance with environmental policies [190]. - The company actively monitors energy consumption data to prevent waste in construction projects [200]. - The company has set up annual environmental awareness activities involving all stakeholders to promote eco-friendly practices [190]. Shareholder and Capital Management - The company did not recommend any final dividend for the fiscal year [112]. - As of October 31, 2020, the company's distributable reserves were SGD 69.777 million in share premium and a cumulative loss of SGD (5.351) million [119]. - The company has maintained its capital development and operational balance in its dividend policy [101]. - The company will review its dividend policy periodically and may update it as deemed appropriate [103]. Risk Management - The board is responsible for assessing and determining the nature and extent of risks the company is willing to take to achieve strategic objectives [88]. - The company has engaged Virtus Assure Pte Ltd to review the effectiveness of its internal controls, with no significant concerns identified that could impact financial, operational, compliance, or risk management [91]. - The company has implemented monitoring procedures to ensure strict prohibition against unauthorized access and use of insider information [94].

Financial Performance - For the six months ended April 30, 2020, the company's revenue decreased by 19.55% to approximately SGD 91.46 million from about SGD 113.7 million in the previous period[10]. - Gross profit for the same period fell by approximately 49.0%, from about SGD 14.42 million to SGD 7.36 million, with a gross margin decline of 3.93 percentage points to 8.75%[10]. - The company recorded a net profit after tax of approximately SGD 4.15 million, a decrease of about 55.6% compared to the previous period[15]. - Revenue for the six months ended April 30, 2020, was SGD 91,462 thousand, a decrease of 19.5% compared to SGD 113,690 thousand in 2019[58]. - Gross profit for the six months ended April 30, 2020, was SGD 7,360 thousand, down 48.9% from SGD 14,423 thousand in 2019[58]. - Profit before tax decreased to SGD 4,259 thousand, a decline of 62.7% from SGD 11,408 thousand in the previous year[58]. - Net profit for the period was SGD 4,150 thousand, representing a 55.7% decrease from SGD 9,351 thousand in 2019[58]. - Basic and diluted earnings per share were both SGD 0.3, down from SGD 0.6 in the same period last year[58]. Order Book and Future Outlook - The order book value as of April 30, 2020, stood at SGD 373.9 million, bolstered by two significant contracts worth a total of SGD 254.14 million secured at the end of 2019[6]. - The company holds a robust order book valued at SGD 373.9 million, indicating a cautious optimism for future operations despite current challenges[34]. - The Singapore construction market is projected to improve by 0.5% to 2.5% year-on-year in 2020, although the impact of the pandemic has led to significant disruptions[30]. - The construction industry in Singapore is expected to face a contraction of 10.3% in 2020 due to the pandemic's effects[30]. Expenses and Costs - Administrative expenses increased to SGD 4.86 million, up from approximately SGD 3.74 million, primarily due to additional costs incurred during the shutdown period[13]. - Total materials, subcontractors, and other construction costs were SGD 72,528,000, a reduction of 17.0% from SGD 87,334,000 in 2019[95]. - The total employee cost for the six months ended April 30, 2020, was approximately SGD 14 million, consistent with the previous year[28]. Government Support and Financial Management - Other income rose by approximately SGD 873,000, mainly due to government grants provided to assist businesses with costs arising from the pandemic[11]. - The company has actively utilized government financial support programs during the circuit breaker measures to manage labor costs[31]. - Government grants received increased significantly to SGD 1,125,000 from SGD 162,000 in the previous year, reflecting support for employment and mechanization[93]. Liquidity and Financial Ratios - The current ratio as of April 30, 2020, was 2.4, compared to 2.6 as of October 31, 2019, indicating a stable liquidity position[18]. - As of April 30, 2020, the company's debt-to-equity ratio was 13.0%, a slight decrease from 13.9% on October 31, 2019, primarily due to term loans[19]. - Cash and cash equivalents rose significantly to SGD 48,296 thousand, compared to SGD 31,186 thousand in 2019, marking a 54.8% increase[59]. - Operating cash flow for the six months was SGD 18,287 thousand, a substantial increase from SGD 4,042 thousand in the previous year[63]. Corporate Governance and Management - The company did not declare any interim dividends for the period ended April 30, 2020[16]. - The company has adopted and complied with all applicable provisions of the corporate governance code, except for the separation of roles between the chairman and the CEO[40]. - The board of directors currently consists of two executive directors and three independent non-executive directors following the resignation of an independent director on April 11, 2020[51]. Assets and Liabilities - Total assets increased to SGD 175,356 thousand from SGD 160,378 thousand, reflecting a growth of 9.8%[60]. - The company’s liabilities decreased slightly to SGD 55,074,000 as of April 30, 2020, from SGD 56,460,000 a year earlier[75][78]. - Total reported segment assets as of April 30, 2020, were SGD 93,638,000, a decrease of 10.6% from SGD 104,825,000 as of October 31, 2019[84]. - Total reported segment liabilities increased to SGD 55,074,000 as of April 30, 2020, up 23.2% from SGD 44,699,000 as of October 31, 2019[88]. Trade Receivables and Payables - Trade receivables increased to SGD 64,785 thousand from SGD 59,408 thousand, an increase of 9.4%[59]. - The aging analysis of trade receivables showed that amounts overdue but not impaired totaled SGD 17,193,000 for over one year as of April 30, 2020[117]. - Trade payables decreased from SGD 14,477,000 as of October 31, 2019, to SGD 11,214,000 as of April 30, 2020, representing a reduction of approximately 22.5%[135]. Capital Expenditures and Investments - The company incurred capital expenditures of SGD 767,000, significantly lower than SGD 15,104,000 in the same period of 2019[64]. - The company did not sell any properties, plant, or equipment during the six months ended April 30, 2020, compared to SGD 39,000 in the previous year[64]. - The net book value of property, plant, and equipment as of April 30, 2020, was SGD 17,330,000, an increase from SGD 16,905,000 as of October 31, 2019[104]. Strategic Initiatives - The company is focusing on digital transformation initiatives to mitigate the impact of COVID-19 and enhance operational efficiency[7]. - The company is expanding into public housing and large design projects, aiming to establish itself as a leading contractor in Singapore[6]. - The company is considering digital transformation in response to the pandemic, which includes worker management initiatives[45].

Company Performance - The company achieved outstanding performance despite a challenging year, with a focus on developing new project types to respond to market fluctuations [8]. - The company is optimistic about steady growth in 2020, supported by a solid track record and experienced management team [9]. - The company successfully launched its first real estate development project during the fiscal year, marking a significant step towards diversified operations [8]. - The company plans to expand its local market share while making significant progress in overseas business attempts in the coming year [9]. Financial Overview - The group's overall profit margin increased slightly from 10.8% for the fiscal year ending October 31, 2018, to 12.0% for the current fiscal year [25]. - The construction division's profit margin decreased from 9.9% to 9.6%, while the civil engineering division's profit margin rose significantly from 23.7% to 38.4% [24]. - The group's revenue decreased by 5.7% compared to the fiscal year ending October 31, 2018, but gross profit increased by 1.2% [27]. - The general construction division contributed 91.4% of the group's revenue and 72.8% of gross profit, while the civil engineering division contributed 8.6% of revenue and 27.2% of gross profit [27]. - The group recorded a profit attributable to owners of SGD 1.1 million growth compared to the fiscal year ending October 31, 2018 [26]. - The company's profit attributable to owners increased by approximately SGD 1.1 million, representing a growth of about 8% compared to the fiscal year ending October 31, 2018 [31]. Market Conditions - The construction industry in Singapore remains sluggish, with intense competition in project bidding impacting overall market conditions [8]. - The construction market in Singapore remains competitive, with continuous downward pressure on bid prices [24]. - The economic growth forecast for Singapore in 2020 is between 0.5% to 2.5%, which is expected to positively impact construction demand [42]. Shareholder and Management Relations - The company expressed gratitude to shareholders, directors, executives, and employees for their contributions to the group's development [9]. - The management team is committed to creating value for employees and delivering greater returns to shareholders in the new year [9]. - The company does not recommend any dividend for the fiscal year to maintain competitiveness and ensure sufficient operating cash flow [32]. - The company maintains a dividend policy balancing sufficient capital development and rewarding shareholders, considering factors such as financial performance and operational funding needs [94]. Governance and Board Structure - The board of directors consists of six members, with independent non-executive directors making up 66.7% of the board [50]. - The board held a total of five meetings during the reporting period, including discussions on significant financial matters and project approvals [54]. - All independent non-executive directors confirmed their independence according to the guidelines set out in the listing rules [51]. - The company has adopted a board diversity policy, emphasizing the importance of diverse skills, experiences, and perspectives among board members [57]. - The company has established a nomination committee to review and recommend candidates for board appointments [58]. Risk Management and Compliance - The board is responsible for risk management and internal control systems, which are designed to manage risks rather than eliminate them [82]. - The company has established a risk management policy that includes identification, assessment, and management procedures for key business risks [83]. - The company has established compliance procedures to ensure adherence to applicable laws and regulations in Singapore, the Cayman Islands, and Hong Kong [115]. Environmental and Social Responsibility - The company has implemented comprehensive safety policies to protect employee health and safety, aiming for zero occupational health and safety incidents [152]. - The company is committed to sustainable building practices, focusing on user safety and minimizing environmental impact during construction and operation [171]. - The company has established an Environment, Health, and Safety (EHS) committee and environmental control officers at all project sites to oversee and enforce environmental policies [174]. - The company has adopted energy-efficient practices, ensuring that all office equipment is energy-saving and automatically shuts down when not in use [178]. Project and Operational Highlights - The company secured six additional projects with a total contract value of approximately SGD 208.5 million, contributing to a robust order book of SGD 442.4 million [43]. - The company has made significant progress in undertaking institutional projects, including constructing international schools and high-end corporate offices [24]. - The company has become a leading contractor in building food industry facilities after completing four food industrial plant construction projects [24].