Company Overview - The group has been a leading demolition service provider in Singapore for over 29 years, focusing on various types of buildings and structures [9]. - The company holds multiple licenses, including a general contractor Class 2 license and a single grading license for demolition, allowing unlimited bidding for public demolition projects [9]. - The company was successfully listed on the Hong Kong Stock Exchange on November 8, 2019, enhancing its capital acquisition capabilities [9]. - The group has registered with the Building and Construction Authority of Singapore, which is a prerequisite for bidding on public sector projects [9]. Project Status - The group completed six demolition projects in the first half of 2022, including four commercial buildings, one religious building, and one shipyard project [14]. - As of June 30, 2022, the group had seven ongoing demolition projects, with four being commercial buildings, one school, one power station project, and one coastal project [25]. - The ongoing projects are expected to be completed between August 31, 2022, and April 15, 2023 [27]. Financial Performance - The company's revenue for the first half of 2022 was approximately SGD 16.7 million, an increase of about 95.7% compared to SGD 8.5 million in the first half of 2021, driven by the recovery in the Singapore construction market [42]. - The total revenue confirmed from completed projects in the first half of 2022 amounted to 11,217 thousand Singapore dollars [14]. - The gross profit margin improved significantly to approximately 29.5% in the first half of 2022, up from 7.2% in the same period of 2021, reflecting the resumption of demolition activities [52]. - The company recorded a profit attributable to equity holders of approximately SGD 0.2 million in the first half of 2022, compared to a loss of about SGD 3.0 million in the same period of 2021 [60]. - Total revenue for the six months ended June 30, 2022, was SGD 16,714,360, an increase from SGD 8,540,040 in the same period of 2021 [116]. - Gross profit for the same period was SGD 4,925,222, compared to SGD 611,944 in the previous year, indicating a significant improvement [116]. - The company reported a total comprehensive income of SGD 223,579 for the six months ended June 30, 2022, recovering from a loss of SGD 2,985,358 in the prior year [116]. - Basic and diluted earnings per share for the period were SGD 0.02, a turnaround from a loss per share in the previous year [116]. Assets and Liabilities - The net assets of the company increased to approximately SGD 20.0 million as of June 30, 2022, up by about 4.9% from SGD 19.0 million as of December 31, 2021 [61]. - Total assets as of June 30, 2022, amounted to SGD 54,731,465, slightly up from SGD 54,372,311 at the end of 2021 [119]. - Total liabilities increased to SGD 15,194,352 as of June 30, 2022, compared to SGD 15,058,777 at the end of 2021 [119]. - The total debt of the group as of June 30, 2022, was approximately SGD 15.2 million, up from SGD 15.1 million as of December 31, 2021 [63]. - The debt-to-equity ratio as of June 30, 2022, was approximately 28.6%, an increase from 27.1% as of December 31, 2021 [64]. Cash Flow and Expenses - The company’s cash and cash equivalents were approximately SGD 11.5 million as of June 30, 2022, down from SGD 12.3 million as of December 31, 2021 [62]. - The company’s administrative expenses for the first half of 2022 were approximately SGD 4.9 million, significantly higher than in the same period of 2021, primarily due to an increase in employee costs [53]. - Total expenses for the six months ended June 30, 2022, amounted to SGD 16,773,818, up from SGD 11,804,925 in 2021, reflecting an increase of 42.1% [154]. - Employee benefits expenses, including directors' remuneration, rose to SGD 5,297,827 in the first half of 2022, compared to SGD 3,677,920 in 2021, marking an increase of 44% [155]. Shareholder Information - As of the end of the first half of 2022, TCB holds 341,700,000 shares, representing 34.17% of the company's equity [94]. - K Luxe Holdings Limited owns 163,900,000 shares, accounting for 16.39% of the company's equity [94]. - Ms. Lee has a beneficial ownership of 505,600,000 shares, which constitutes 50.56% of the company's equity [94]. - The company has a share option plan approved on October 15, 2019, with a total of 100,000,000 shares available for issuance, representing 10% of the issued share capital [103]. - No share options were granted, exercised, cancelled, or lapsed under the share option plan as of the end of the first half of 2022 [103]. Governance and Compliance - The company has complied with the corporate governance code during the first half of 2022 [104]. - The board consists of four executive directors, one non-executive director, and three independent non-executive directors, ensuring strong independence [109]. - The audit committee, chaired by Mr. Liang You-Wan, includes three independent non-executive directors and has reviewed the financial results for the six months ending June 30, 2022 [113]. Market Outlook - The company expects to benefit from more awarded contracts in the fiscal year 2022, with private sector contract values estimated between SGD 1.1 billion and SGD 1.3 billion [38]. - The company anticipates increased demand for its core business over the next three years due to the return of collective sales in the market [39].

Financial Performance - For the fiscal year ending December 31, 2021, the company's total revenue increased by SGD 16.9 million or 171.9% to approximately SGD 26.7 million compared to the previous fiscal year[10]. - The company achieved a net profit of approximately SGD 0.2 million for the fiscal year 2021, a turnaround from the previous year's loss[10]. - The total revenue for the fiscal year 2021 increased by SGD 16.9 million or 171.9% to approximately SGD 26.7 million compared to the fiscal year 2020[43]. - The company recorded a gross profit margin of 26.4% in the fiscal year 2021, reversing from a gross loss in the fiscal year 2020, primarily due to higher revenue from the disposal of high-value waste materials[43]. - The company achieved a gross profit of approximately 7.1 million SGD in fiscal year 2021, an increase of 13.6 million SGD or 209.0% from a gross loss of about 6.5 million SGD in fiscal year 2020, with a gross profit margin of approximately 26.4%[54]. - The company reported a net profit attributable to shareholders of approximately 0.2 million SGD in fiscal year 2021, a turnaround from a loss of about 12.0 million SGD in fiscal year 2020, resulting in basic earnings per share of 0.02 SGD[61]. - The company’s sales costs for fiscal year 2021 were approximately 19.7 million SGD, an increase of 3.3 million SGD from about 16.3 million SGD in fiscal year 2020, primarily due to increased project activity[53]. - The company’s other income for fiscal year 2021 was 0.6 million SGD, a decrease of 1.1 million SGD from about 1.7 million SGD in fiscal year 2020, mainly due to a reduction in government subsidies[56]. - The company maintains a robust financial position with a stable cash flow from internal generation, bank loans, and other borrowings[62]. - As of December 31, 2021, the group's net current assets were approximately SGD 18.8 million, an increase of about SGD 2.6 million or 16.4% from SGD 16.2 million as of December 31, 2020[63]. - Cash and cash equivalents increased to approximately SGD 12.3 million as of December 31, 2021, compared to SGD 9.1 million as of December 31, 2020[63]. - The group's bank borrowings and lease liabilities were approximately SGD 1.3 million and SGD 9.4 million, respectively, as of December 31, 2021, compared to SGD 1.9 million and SGD 9.5 million in the previous fiscal year[66]. - The equity attributable to the owners of the company was approximately SGD 39.5 million as of December 31, 2021, compared to SGD 39.3 million as of December 31, 2020[67]. - The debt-to-equity ratio slightly decreased from 29.0% as of December 31, 2020, to 27.2% as of December 31, 2021, due to a reduction in bank borrowings and an increase in equity[70]. Construction Demand and Market Outlook - The preliminary total construction demand in Singapore for 2021 increased by 42% to approximately SGD 30 billion, driven by public housing and infrastructure projects[11]. - The company anticipates total construction demand in 2022 to range between SGD 27 billion and SGD 32 billion, with the public sector expected to contribute about 60%[11]. - The company expects ongoing construction demand to provide momentum for the demolition industry in 2022[11]. - The construction sector is expected to benefit from Singapore's large-scale economic stimulus policies and the potential growth in the construction industry[13]. - The company is optimistic about future prospects due to the strong pipeline of public housing projects and infrastructure developments[11]. - The company is optimistic about the continued construction demand in 2022, driven by strong public housing project reserves and infrastructure developments[45]. Management and Governance - The company has a strong management team with key figures like Tan Wei Leong and Tang Ling Ling, who have over 9 and 20 years of experience in the industry respectively[22][19]. - The company is focused on overall management and development in recycling and logistics, with Alvin Tan overseeing these areas since 2011[22]. - The management team has received various certifications and training in safety and construction management, enhancing operational capabilities[20][23]. - The board includes independent directors with extensive experience in investment and asset management, ensuring robust governance[28][30]. - The company is actively involved in project development and financing, with Liang Youwen managing these aspects since 2014[30]. - The management team is committed to human resources and bidding processes, with Tang Ling Ling leading these efforts[19]. - The leadership structure includes family members, ensuring continuity and alignment in business strategy[19]. - The company maintained a high level of corporate governance practices aimed at long-term financial performance rather than short-term gains[129]. - The board of directors includes both executive and independent non-executive members, with changes in the board composition noted during the fiscal year[121][122]. - The company has a strong independent board composition, with independent non-executive directors making up at least one-third of the board[192]. - The company has adopted the corporate governance code as per the listing rules, ensuring effective accountability and enhancement of shareholder value[179]. - The board is responsible for overseeing the company's affairs, including adopting long-term strategies and supervising senior management[184]. - The company has complied with the corporate governance code throughout the fiscal year 2021, with a noted deviation regarding the roles of Chairman and CEO[180]. Employee and Operational Insights - The group employed 115 staff as of December 31, 2021, an increase of 4 from the previous year, due to new hires during the fiscal year[76]. - The group had a total of 115 employees as of December 31, 2021, with approximately 32% being local employees and 68% foreign employees[91]. - The company provides new directors with comprehensive information on their responsibilities and ongoing obligations under the Companies Ordinance and Listing Rules[197]. - All directors have participated in continuous professional development to enhance their knowledge and skills, with training records submitted for the fiscal year 2021[197]. - Directors attended seminars and briefings related to regulatory updates and their duties, contributing to their professional development[198]. Shareholder and Capital Management - Major shareholders include TCB with 341,700,000 shares (34.17%), K Luxe Holdings Limited with 163,900,000 shares (16.39%), and Ms. Lee with 505,600,000 shares (50.56%) as of December 31, 2021[152]. - Ms. Lee is considered to have interests in shares held by TCB, which is controlled by Mr. Tan, as per the Securities and Futures Ordinance[153]. - The company did not recommend a final dividend for the 2021 fiscal year[99]. - The group adopted a dividend policy in March 2020, considering various factors such as actual and expected financial performance, retained earnings, and operational funding needs[96]. - The company has not entered into any capital raising agreements that would lead to the issuance of shares during the fiscal year 2021[166]. - The company maintained a sufficient public float of at least 25% of issued shares as required by the listing rules[170]. Risks and Compliance - The group faced foreign exchange risk, with potential impacts of approximately SGD 177,000 on profit or loss due to a 4% fluctuation in exchange rates as of December 31, 2021[82]. - The group had no significant contingent liabilities or pending litigation as of December 31, 2021[72]. - The company did not engage in any related party transactions as defined by the listing rules during the fiscal year 2021[169]. - There were no significant management contracts established with individuals responsible for major management and administrative tasks during the fiscal year 2021[128]. - The company has established a code of conduct for directors regarding securities trading, which has been adhered to throughout the fiscal year[181]. - The company ensures compliance with corporate governance codes and updates on significant developments in regulatory requirements[197].

| --- | --- | |----------------------------------------|-------| | | | | | | | BENG SOON | | | MACHINERY | | | HOLDINGS | | | LIMITED (於開曼群島註冊成立的有限公司) | | | 股份代號:1987 | | | 中期報告 2021 | | 11111 -------------- 0000000 母亲亲 目 錄 2 公司资料 4 管理層討論及分析 19 企業管治及其他資料 27 簡明综合全面收益表 28 簡明综合財務狀況表 30 簡明綜合中期財務報表附註 公司資料 董事會 執行董事 Tan Chee Beng先生 (主席兼行政總裁) Tang Ling Ling 女士 Tan Wei Leong 先生 汪東風先生 非執行董事 張錦輝先生 獨立非執行董事 Wee Chorng Kien 先生 梁又穩先生 梁基偉先生 審計委員會 梁又穩先生(主席) Wee Chorng Kien 先生 梁基偉先生 提名委員會 Tan Chee Beng先生(主席) Wee Chorng Kien ...

Company Listing and Reputation - The company successfully listed on the Hong Kong Stock Exchange on November 8, 2019, enhancing its reputation and visibility in the demolition services industry[5]. - The company aims to utilize the net proceeds from its IPO to implement its future development and business strategies as outlined in the prospectus[5]. - The company is committed to enhancing its corporate image and reputation through its listing and ongoing business development efforts[5]. Impact of COVID-19 - The COVID-19 pandemic significantly impacted the company's operations, with construction activities in Singapore being halted from April 7 to June 1, 2020, due to government-imposed lockdown measures[6]. - The management has taken relevant actions to mitigate the adverse effects of the revised construction demand on the company's operations[7]. - The company faced operational challenges due to COVID-19, leading to project delays and a significant reduction in operational activities[48]. Financial Performance - Total revenue for the fiscal year 2020 decreased by SGD 24.2 million or 71.1% to approximately SGD 9.8 million, primarily due to the significant negative impact of COVID-19 and related government measures[10]. - The loss attributable to equity holders was approximately SGD 12.0 million, a decrease of about SGD 15.2 million or 470.8% from a profit of approximately SGD 3.2 million in the fiscal year 2019[10]. - The group reported a loss attributable to equity holders of approximately SGD 12.0 million for the fiscal year 2020, a decrease of SGD 15.2 million or 470.8% from a profit of SGD 3.2 million in 2019[63]. Construction Industry Outlook - The construction demand forecast by the Building and Construction Authority was revised down from SGD 28 billion to SGD 33 billion to a new range of SGD 18 billion to SGD 23 billion for 2020[7]. - The construction industry in Singapore saw a year-on-year decline of 28.5% in Q4 2020, an improvement from a 46.2% decline in Q3 2020, indicating a gradual recovery in construction activities[11]. - The company is optimistic about a gradual recovery in demand for demolition services in 2021, driven by public sector projects[13]. Business Strategy and Expansion - The company is committed to expanding its services in the public sector, which is expected to support the recovery of the construction industry[13]. - The company is exploring other business opportunities due to contract delays and project postponements[14]. - The company is focused on expanding its market presence and enhancing its product offerings through strategic investments and partnerships[35]. Corporate Governance and Management - The company has a strong board of directors with diverse backgrounds in finance, management, and technology, enhancing its governance and strategic oversight[35]. - The management team emphasizes the importance of compliance and corporate governance in its operations, ensuring transparency and accountability[39]. - The board consists of four executive directors, one non-executive director, and three independent non-executive directors, ensuring strong independence[184]. Environmental Responsibility - The company is committed to environmental responsibility, focusing on recycling demolition waste and complying with applicable environmental laws and regulations[103]. - The group has complied with applicable environmental laws and regulations in all material aspects for the fiscal year 2020, with total environmental compliance costs of approximately SGD 1.7 million, SGD 2.0 million, and SGD 2.3 million over the past three years[104]. Workforce and Employment - The group employed a total of 111 staff as of December 31, 2020, with approximately 32% being local employees and 68% foreign employees[92]. - The group expanded its workforce by hiring additional project management and execution personnel, with a total cost of SGD 9.1 million[113]. Financial Position and Assets - As of December 31, 2020, the group's net current assets were approximately SGD 16.2 million, a decrease of SGD 10.8 million or 40.0% from SGD 27.0 million in 2019[67]. - The total equity attributable to equity holders was approximately SGD 39.3 million as of December 31, 2020, down from SGD 51.5 million in 2019[71]. - The group faced foreign exchange risk, with a potential impact of approximately SGD 43,000 on post-tax losses and equity due to a 4% fluctuation in the exchange rate as of December 31, 2020, compared to SGD 20,000 in 2019[84]. Shareholder Information - As of December 31, 2020, Tan Chee Beng holds 505,600,000 shares, representing 50.56% of the company's equity[139]. - TCB Investment Holdings Limited, wholly owned by Tan Chee Beng, holds 341,700,000 shares, accounting for 34.17% of the equity[150]. - The largest customer contributed 37.3% of total contract revenue, with the top five customers accounting for 56.4%[127].

Financial Performance - The group's revenue for the first half of 2020 was approximately SGD 3.7 million, a decrease of about 78.3% compared to SGD 16.9 million in the first half of 2019 due to the significant adverse impact of COVID-19[46]. - Revenue for the six months ended June 30, 2020, was SGD 3,667,624, a decrease of 78.2% compared to SGD 16,882,189 in the same period of 2019[131]. - Gross loss for the period was SGD 5,621,598, compared to a gross profit of SGD 6,007,825 in the previous year[131]. - The group completed four demolition projects in the first half of 2020, a reduction of 11 projects compared to the first half of 2019[39]. - The gross profit margin fell from approximately 35.6% in the first half of 2019 to a negative 153.3% in the first half of 2020[56]. - The company reported a loss attributable to equity holders of approximately SGD 9.3 million for the first half of 2020, a decrease of SGD 10.1 million or 1,210.4% compared to a profit of SGD 0.8 million in the same period of 2019[63]. - Basic loss per share for the six months ended June 30, 2020, was SGD (0.93), compared to earnings of SGD 0.11 per share in 2019[192]. Project and Operational Updates - The company completed four demolition projects in the first half of 2020, with total confirmed revenue of SGD 9,663 thousand[20]. - As of June 30, 2020, the company had eight ongoing demolition projects, with a cumulative confirmed revenue of SGD 10,000 thousand[27]. - The estimated completion date for ongoing projects includes August 31, 2020, for a project with confirmed revenue of SGD 894 thousand[29]. - The company focuses on demolition services for various structures, including power plants and high-rise buildings, with over 26 years of experience[17]. - The company aims to expand its market presence in both public and private sectors through strategic project acquisitions[17]. Financial Position and Assets - The net current assets of the group decreased significantly by approximately SGD 7.3 million or 27.0% to about SGD 19.7 million as of June 30, 2020, compared to SGD 27.0 million on December 31, 2019[68]. - Cash and cash equivalents were approximately SGD 8.6 million as of June 30, 2020, down from SGD 14.1 million on December 31, 2019, primarily used for working capital purposes[69]. - Total assets as of June 30, 2020, were SGD 58,987,818, down from SGD 71,321,664 as of December 31, 2019, representing a decrease of 17.3%[134]. - Total equity attributable to the company's equity holders was SGD 42,232,509, down from SGD 51,503,096, reflecting a decline of 18.0%[134]. - The total capital as of June 30, 2020, was SGD 46,108,122, down from SGD 51,338,517 as of December 31, 2019[152]. Corporate Governance and Management - The company appointed a new director, Wang Dongfeng, on July 24, 2020, to enhance its management expertise[17]. - The board is committed to maintaining high standards of corporate governance and has complied with the corporate governance code during the first half of 2020[117]. - The board believes that having the same individual serve as both Chairman and CEO enhances operational efficiency and business strategy execution[123]. - The audit committee, consisting of three independent non-executive directors, reviewed and approved the interim financial results, ensuring compliance with applicable accounting standards[128]. Impact of COVID-19 - The group aims to maintain sufficient cash reserves despite the negative impact of COVID-19 on operations and financial conditions[43]. - The group is focusing on automation to reduce reliance on foreign workers in response to challenges posed by COVID-19[40]. - The group anticipates that future opportunities and challenges will continue to be affected by the uncertainty surrounding the COVID-19 pandemic[43]. - The group recorded other income of SGD 0.6 million in the first half of 2020, compared to approximately SGD 20,000 in the first half of 2019, primarily due to increased government subsidies related to COVID-19 measures[58]. Shareholder Information - Tan Chee Beng holds 605,600,000 shares, representing 60.56% ownership in the company[98]. - TCB Investment Holdings Limited, controlled by Tan Chee Beng, owns 44.17% of the company[103]. - Lee's Holdings Limited, controlled by Lee, holds 163,900,000 shares, representing 16.39% ownership[109]. - The company has a total of 100,000,000 shares available for issuance under the share option scheme, accounting for 10% of the issued share capital[116]. - The board did not recommend the payment of an interim dividend for the period ended June 30, 2020[84]. Debt and Liabilities - The debt-to-equity ratio increased to approximately 29.4% as of June 30, 2020, compared to 27.1% on December 31, 2019[71]. - The company's total liabilities decreased from SGD 1,293,999 in 2019 to SGD 706,210 in 2020, indicating a reduction of 45.4%[188]. - The group's net debt as of June 30, 2020, was SGD 3,875,613, with total equity of SGD 42,232,509, resulting in a debt-to-equity ratio of 8%[152]. Trade Receivables and Impairment - Trade receivables were SGD 3,613,860, down from SGD 6,002,270, indicating a decrease of 39.7%[134]. - The aging analysis of trade receivables shows that receivables over 120 days increased to SGD 2,644,283 from SGD 1,309,660, indicating a rise of approximately 102.5%[197]. - The impairment provision for trade receivables remained unchanged at SGD 265,049 as of June 30, 2020, consistent with the amount reported at the end of 2019[200]. - The company identified two customers with higher credit risk characteristics, leading to a loss provision of SGD 155,049 recognized in 2019 due to ongoing financial restructuring[200].

Financial Performance - Total revenue for the fiscal year 2019 increased by approximately SGD 58,000 or 0.2% to about SGD 34.0 million compared to the fiscal year 2018[10]. - Profit attributable to equity holders for the fiscal year 2019 was approximately SGD 3.2 million, representing an increase of about SGD 0.1 million or 5.1% from SGD 3.1 million in fiscal year 2018[11]. - The group's total revenue for the fiscal year 2019 was approximately SGD 34.0 million, a slight increase of about SGD 58,000 or 0.2% from SGD 33.94 million in 2018[51]. - The net contract amount for 2019 was SGD 15.972 million, up from SGD 8.462 million in 2018, indicating a significant growth in contract revenue[52]. - The gross profit for 2019 decreased by SGD 1.0 million or 7.7% to approximately SGD 12.7 million, with a gross profit margin of 37.2% compared to 40.3% in 2018[54]. - The group's selling costs for 2019 were approximately SGD 21.4 million, an increase of SGD 1.1 million from SGD 20.3 million in 2018, primarily due to increased subcontractor costs[53]. - Other income for 2019 was approximately SGD 143,000, a decrease of about SGD 55,000 from SGD 198,000 in 2018, mainly due to reduced government grants[57]. - Administrative expenses for 2019 were approximately SGD 8.1 million, down by SGD 1.3 million from SGD 9.4 million in 2018, attributed to reduced listing expenses[58]. - The financing costs for 2019 were approximately SGD 513,000, a slight increase of SGD 8,000 from SGD 505,000 in 2018[59]. - The income tax expense for 2019 was approximately SGD 0.8 million, a decrease of SGD 0.5 million from SGD 1.3 million in 2018, due to higher corporate tax refunds[60]. Market Outlook - The demolition services market in Singapore is projected to grow at a compound annual growth rate of approximately 6.1% from 2019 to 2023, driven by upcoming reconstruction projects and demand for demolition services[14]. - The company expresses optimism about the demolition services market outlook and is committed to expanding its operational scale to maximize shareholder returns[16]. - The group aims to strengthen its market position and contribute to sustainable growth in land redevelopment in Singapore, given the optimistic economic outlook[15]. - The company aims to leverage the expected growth in the demolition market to enhance its operational capabilities and market position[14]. Operational Developments - The company undertook 23 different types of demolition projects in Singapore during fiscal year 2019, completing 17 projects[11]. - An investment of SGD 2.9 million was made in purchasing excavators with varying capacities, including a 48.5-meter high excavator, expected to enhance profitability and financial performance[11]. - The company anticipates total revenue of approximately SGD 10 million from ongoing projects that are progressing as scheduled[11]. - The group aims to consolidate its position as a leading demolition service provider in Singapore and plans to invest in upgrading machinery and equipment to capture more demolition projects[48]. - The group continues to expand its operational capabilities and enhance its management structure to support future growth[45]. Corporate Governance - The board of directors is committed to maintaining high corporate governance standards and has adopted the principles and relevant code provisions of the Corporate Governance Code[169]. - The company has deviated from the Corporate Governance Code by having the roles of Chairman and CEO held by the same individual, Tan Chee Beng, which the board believes is in the best interest of the group[170]. - The board consists of three executive directors, one non-executive director, and three independent non-executive directors, ensuring strong independence[170]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific aspects of the company's affairs[197]. - The Audit Committee comprises three independent non-executive directors, with the chairman possessing appropriate professional qualifications and financial expertise as per Listing Rule 3.21[199]. Human Resources - The group had a total of 130 employees as of December 31, 2019, an increase of 1 from the previous year[75]. - The group has maintained effective employee and compensation policies in compliance with local regulations in Singapore[89]. - The group plans to expand its workforce by hiring project management and execution personnel, with an allocation of 11.8% of the net proceeds for this purpose[109]. - The group reported no significant disputes with suppliers or customers during the 2019 financial year, indicating stable operational conditions[91]. Financial Position - As of December 31, 2019, the group's net current assets were approximately SGD 27.0 million, a significant increase of SGD 21.8 million or 419.2% from SGD 5.2 million on December 31, 2018, primarily due to the receipt of listing proceeds and repayment of trade and other payables, borrowings, and lease liabilities[65]. - The total equity attributable to the company's equity holders was approximately SGD 51.5 million as of December 31, 2019, compared to SGD 30.1 million as of December 31, 2018[66]. - The debt-to-equity ratio decreased from 67.5% on December 31, 2018, to 27.1% on December 31, 2019, due to a significant reduction in bank borrowings and lease liabilities, along with an increase in reserves from issuing shares[67]. - Cash and cash equivalents increased to approximately SGD 14.1 million as of December 31, 2019, from SGD 3.0 million as of December 31, 2018, mainly due to listing proceeds[65]. Environmental and Social Responsibility - The group has adopted an environmental management system certified to ISO 14001:2015 standards since 2016, focusing on pollution control and resource conservation[101]. - The group’s environmental compliance costs for the past three years were approximately SGD 1.9 million, SGD 1.7 million, and SGD 2.0 million respectively[101]. - The company did not make any charitable donations during the fiscal year 2019[112]. Shareholder Information - The group has no preset dividend payout ratio, with the board deciding on dividends based on various financial factors[94]. - As of December 31, 2019, TCB held 491,700,000 shares, representing 49.17% of the total shares issued[143]. - K.Luxe Holdings Limited owned 163,900,000 shares, accounting for 16.39% of the total shares issued[143]. - The company has adopted a share option scheme effective from October 15, 2019, which will be valid for ten years[150]. - Under the share option scheme, the maximum number of shares that can be issued shall not exceed 10% of the total shares issued at the time of listing[150]. Risk Management - The group faces foreign exchange risks primarily due to cash and cash equivalents, trade receivables, and payables denominated in USD and HKD, with potential impacts of approximately SGD 20,000 on net profit and equity from a 4% fluctuation in exchange rates[80]. - The group had no significant contingent liabilities or outstanding debts as of December 31, 2019[72]. Recent Developments - The group did not experience any significant business interruptions due to COVID-19, and there was no major adverse impact on the consolidated financial statements for the year ended December 31, 2019[165]. - The consolidated financial statements for the year ended December 31, 2019, have been audited by PricewaterhouseCoopers, and a resolution will be proposed at the upcoming annual general meeting to reappoint them as auditors[167].