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].

HPC HOLDINGS LIMITED 執行董事 王應德先生 （主席兼行政總裁） 施建華先生 （首席運營官） （於開曼群島註冊成立之有限公司） 股份代號: 1742 中期報告 2019 目錄 | 公司資料 | 2 | | --- | --- | | 管理層討論及分析 | 4 | | 企業管治及其他資料 | 14 | | 中期財務資料審閱報告 | 17 | | 中期簡明綜合全面收益表 | 19 | | 中期簡明綜合財務狀況表 | 20 | | 中期簡明綜合權益變動表 | 22 | | 中期簡明綜合現金流量表 | 23 | | 簡明綜合中期財務資料附註 | 25 | HPC HOLDINGS LIMITED | 2019中期報告 公司資料 董事會及其他委員會 獨立非執行董事 朱東先生 梁偉業先生 吳敬慧女士 翁敦廉先生 審核委員會 梁偉業先生 （主席） 朱東先生 吳敬慧女士 薪酬委員會 朱東先生 （主席） 王應德先生 吳敬慧女士 提名委員會 王應德先生 （主席） 朱東先生 吳敬慧女士 工作場所安全與健康委員會 翁敦廉先生 （主席） 施建華先生 林文秀先生 （於二零一九年六月十四日辭任） 何 含女士 （於二零一九 ...

Financial Performance - The group experienced revenue growth compared to the previous year, but faced reduced gross margins due to intense bidding competition and high construction costs in the local market[9]. - The company's revenue increased by 13.7% from approximately SGD 201.1 million to about SGD 228.6 million for the fiscal year[28]. - Gross profit decreased by 38.0%, dropping from approximately SGD 39.8 million to around SGD 24.7 million due to a 26.5% rise in sales costs[28]. - The profit margin fell from 19.8% in the previous fiscal year to 10.8% in the current fiscal year[26]. - The net profit attributable to the company's owners decreased by 49.8%, from approximately SGD 27.3 million to about SGD 13.7 million[32]. - Operating profit for the year was SGD 16.61 million, down from SGD 33.51 million in the previous year, indicating a decrease of approximately 50.5%[183]. - Net profit attributable to owners of the company was SGD 13.72 million, compared to SGD 27.32 million in 2017, a decline of around 49.7%[183]. - Basic and diluted earnings per share decreased to SGD 1.0 from SGD 2.3, reflecting a drop of approximately 56.5%[183]. - The company reported a total comprehensive income of SGD 27,324 thousand for the year ended October 31, 2018, compared to SGD 13,715 thousand in 2017, marking an increase of approximately 99.0%[190]. Market Outlook - For 2019, the Singapore construction market is expected to gradually recover, and the company is optimistic about achieving steady growth based on its past performance and current project contracts[10]. - The company anticipates a significant reduction in the number of projects awarded due to the ongoing challenges in the construction market[25]. - The company anticipates continued volatility in the Singapore construction market, influenced by global economic conditions and trade tensions[49]. Strategic Initiatives - The company plans to expand its local market share while also exploring overseas business opportunities and diversifying into real estate development projects to strengthen its market risk resilience[10]. - The company successfully secured four new projects post-fiscal year-end, with a total contract value of approximately SGD 166.4 million[49]. - The company acquired a 51% stake in Regal Haus Pte. Ltd. for SGD 510,000, aimed at redeveloping a property into a commercial building[43]. Governance and Compliance - The board consists of six members, with independent non-executive directors making up 66.7% of the board[56]. - All independent non-executive directors have confirmed their independence according to the listing rules, ensuring compliance since the company's listing date[56]. - The company has established a corporate governance policy adopted on April 19, 2018, which is disclosed in the prospectus dated April 27, 2018[79]. - The company has established a comprehensive onboarding process for new directors to ensure understanding of their responsibilities and the company's operations[58]. - The company has a robust governance framework in place, with the board overseeing business strategies and financial matters[55]. Financial Position - As of October 31, 2018, the current ratio was 2.2, compared to 1.8 on October 31, 2017, indicating strong liquidity management[34]. - The debt-to-equity ratio was 0.1% as of October 31, 2018, down from 0.2% in the previous year, suggesting low leverage[35]. - Total assets increased to SGD 139.00 million in 2018 from SGD 123.77 million in 2017, representing a growth of about 12.2%[185]. - Total equity attributable to owners of the company rose to SGD 79.11 million in 2018 from SGD 62.46 million in 2017, an increase of approximately 26.6%[185]. - Cash and cash equivalents decreased to SGD 23.71 million in 2018 from SGD 27.79 million in 2017, a decline of about 14.5%[185]. Employee and Operational Insights - The total employee costs for the fiscal year amounted to approximately SGD 27.5 million, an increase from SGD 23.2 million in the previous year[46]. - As of October 31, 2018, the company had 929 employees, including foreign workers, reflecting its operational scale[45]. - The company has maintained a focus on internal controls to ensure the accuracy of financial reporting and compliance with relevant regulations[174]. Shareholder Information - The company did not recommend the declaration of a final dividend for the fiscal year[33]. - The company maintains a balance between sufficient capital development and rewarding shareholders in its dividend policy[100]. - The remuneration policy for employees is determined by the remuneration committee based on performance and market data, with the share option plan serving as an incentive[153]. Risks and Challenges - The construction industry in Singapore contracted by 2.2% year-on-year in Q4 2018, continuing a decline of 2.5% in Q3 2018[24]. - The company has no significant foreign exchange risk as most revenues and expenses are denominated in Singapore dollars[36]. - Each department is tasked with identifying and assessing major risks quarterly and developing mitigation plans to manage identified risks[88].