[Company Information](index=3&type=section&id=Company%20Information) This section provides fundamental information about the company [Management Discussion and Analysis](index=5&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the company's operations, financial performance, and future outlook [Overall Review and Business Overview](index=5&type=section&id=Overall%20Review%20and%20Business%20Overview) The Group, a leading demolition service provider in Singapore, saw improved financial performance in H1 2021 as the construction market recovered from COVID-19, completing seven projects and having nine ongoing - The Group is a well-established demolition service provider in Singapore, serving both public and private sectors, specializing in demolishing power plants, chemical plants, and high-rise commercial and residential properties[9](index=9&type=chunk) H1 2021 Completed Projects | Client | Project Description | Completion Date | Cumulative Recognized Revenue (S$ Thousand) | | :--- | :--- | :--- | :--- | | Client A | Demolition of existing commercial building | February 17, 2021 | 219 | | Client B | Demolition of existing commercial building | March 16, 2021 | 774 | | Client C | Demolition of existing commercial building | March 31, 2021 | 651 | | Client D | Demolition of existing oil tank | March 29, 2021 | 167 | | Client E | Demolition of factory building | April 30, 2021 | 616 | | Client F | Residential house demolition | May 6, 2021 | 11 | | Client G | Demolition of show flat | May 20, 2021 | 118 | - As of June 30, 2021, the Group had nine demolition projects underway, spanning commercial, residential, chemical, and power plant sectors[27](index=27&type=chunk) - The Group's business recovered from the COVID-19 pandemic, with revenue increasing in H1 2021 compared to the prior period, improving financial performance from a gross loss to a gross profit[40](index=40&type=chunk) [Outlook and Prospects](index=10&type=section&id=Outlook%20and%20Prospects) The Board is cautiously optimistic about the recovery of Singapore's construction and demolition demand, driven by public sector projects, and plans to diversify into e-commerce while maintaining its core demolition services - Singapore's Building and Construction Authority forecasts total construction demand to recover to **S$23 billion to S$28 billion** in 2021, primarily driven by public sector projects, with the Board cautiously optimistic about the industry's recovery[41](index=41&type=chunk) - While consolidating its core demolition services, the Group is actively seeking business diversification, having commenced e-commerce operations in September 2020 and remaining optimistic about its prospects[42](index=42&type=chunk) [Financial Review](index=11&type=section&id=Financial%20Review) In H1 2021, the Group's financial performance significantly improved, with total revenue increasing by **129.7%** to **S$8.5 million** due to market recovery, and effective cost control reducing cost of sales by **15.1%**, transforming a **S$5.6 million** gross loss into a **S$0.6 million** gross profit, ultimately narrowing loss attributable to equity holders by **68.8%** to **S$2.9 million** [Revenue](index=11&type=section&id=Revenue) Total revenue for H1 2021 was approximately **S$8.5 million**, a **129.7%** increase from **S$3.7 million** in the prior period, primarily driven by the recovery of Singapore's construction market, increased demand for demolition services and scrap material disposal, and new e-commerce revenue Revenue Details (For the six months ended June 30) | Revenue Source | 2021 (S$ Thousand) | 2020 (S$ Thousand) | | :--- | :--- | :--- | | Net contract amount | 4,495 | 2,103 | | Proceeds from disposal of scrap materials | 3,264 | 1,407 | | Proceeds from earth disposal | 296 | 90 | | E-commerce | 367 | - | | Other income | 118 | 68 | | **Total Revenue** | **8,540** | **3,668** | [Cost of Sales](index=12&type=section&id=Cost%20of%20Sales) Cost of sales for H1 2021 was approximately **S$7.9 million**, a **15.1%** decrease from **S$9.3 million** in the prior period, mainly due to reduced subcontractor and transportation expenses, reflecting varying project cost structures - Cost of sales decreased by **15.1%** year-on-year, primarily due to lower subcontractor fees and transportation expenses[53](index=53&type=chunk) [Gross Profit and Gross Margin](index=13&type=section&id=Gross%20Profit%20and%20Gross%20Margin) The Group's gross profit significantly improved, transforming from a gross loss of approximately **S$5.6 million** in H1 2020 to a gross profit of approximately **S$0.6 million** in H1 2021, an increase of **110.7%**, with gross margin improving from **-153.3%** to **7.2%**, mainly due to revenue recovery covering fixed costs and effective cost reduction measures - Gross profit improved from a gross loss of **S$5.6 million** in H1 2020 to a gross profit of **S$0.6 million** in H1 2021[54](index=54&type=chunk) - Gross margin improved from **-153.3%** in H1 2020 to **7.2%** in H1 2021[54](index=54&type=chunk) [Other Financial Indicators](index=13&type=section&id=Other%20Financial%20Indicators) During the period, administrative expenses remained stable at **S$3.8 million**, other income decreased to **S$0.4 million** due to reduced government grants, and finance costs decreased by **50.0%** to **S$0.1 million** due to lower bank loan interest and lease liabilities, resulting in a significant **68.8%** reduction in loss attributable to equity holders to **S$2.9 million** - Administrative expenses remained stable at approximately **S$3.8 million** compared to the prior period[55](index=55&type=chunk) - Other income decreased to **S$0.4 million**, primarily due to reduced COVID-19 related government grants received[56](index=56&type=chunk) - Finance costs decreased by **50.0%** year-on-year to approximately **S$0.1 million**[57](index=57&type=chunk) - Loss attributable to equity holders significantly decreased by **68.8%**, from **S$9.3 million** in the prior period to **S$2.9 million**[60](index=60&type=chunk) [Capital Structure, Liquidity and Financial Resources](index=14&type=section&id=Capital%20Structure%2C%20Liquidity%20and%20Financial%20Resources) The Group's capital structure has remained stable since its listing, with net current assets of approximately **S$15.2 million** and cash and cash equivalents of approximately **S$7.7 million** as of June 30, 2021, total equity of approximately **S$36.4 million**, and total debt of approximately **S$12.6 million**, confirming sufficient financial resources to meet its obligations Key Financial Position Indicators (June 30, 2021) | Indicator | Amount (S$) | Change vs. End of 2020 | | :--- | :--- | :--- | | Net current assets | Approx. 15.2 million | -6.2% | | Cash and cash equivalents | Approx. 7.7 million | -15.4% | | Total equity | Approx. 36.4 million | -7.4% | | Total debt | Approx. 12.6 million | -9.2% | [Gearing Ratio](index=15&type=section&id=Gearing%20Ratio) The gearing ratio, calculated as total borrowings and lease liabilities divided by total equity, slightly increased to approximately **29.5%** as of June 30, 2021, from **29.0%** at the end of 2020 - As of June 30, 2021, the Group's gearing ratio was approximately **29.5%**, a slight increase from **29.0%** as of December 31, 2020[68](index=68&type=chunk) [Use of Proceeds from Listing](index=18&type=section&id=Use%20of%20Proceeds%20from%20Listing) The company listed in November 2019, raising approximately **HK$77.5 million** net proceeds, with approximately **HK$43.1 million** remaining unutilized as of H1 2021, primarily allocated for excavator purchases, staff expansion, and qualification enhancement, expected to be fully utilized by December 31, 2022 Use of Proceeds from Listing and Utilization (As of June 30, 2021) | Purpose | Planned Amount (HK$ Thousand) | Unutilized Amount (HK$ Thousand) | | :--- | :--- | :--- | | Strengthening excavator fleet | 51,200 | 31,795 | | Repayment of bank borrowings | 13,500 | - | | Staff expansion | 9,100 | 9,100 | | Qualification enhancement | 2,200 | 2,200 | | General working capital | 1,500 | - | - As of the end of H1 2021, unutilized net proceeds amounted to approximately **HK$43.1 million**, expected to be used for equipment acquisition, recruitment, and qualification enhancement by December 31, 2022[87](index=87&type=chunk) [Corporate Governance and Other Information](index=20&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section details the company's corporate governance practices, including director and shareholder interests, share option schemes, and audit committee oversight [Directors' and Major Shareholders' Interests](index=20&type=section&id=Directors%27%20and%20Major%20Shareholders%27%20Interests) The report discloses the shareholdings of directors and major shareholders, with Executive Director and Chairman Mr. Tan Chee Beng holding **50.56%** of the company's shares through controlled corporations and spouse's interests, and his spouse, Ms. Lee, also deemed to hold **50.56%** Directors' and Major Shareholders' Shareholdings (As of June 30, 2021) | Name/Entity | Capacity | Number of Shares Held | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Tan Chee Beng | Controlled corporations and spouse's interests | 505,600,000 | 50.56% | | Ms. Lee | Controlled corporations and spouse's interests | 505,600,000 | 50.56% | | TCB Investment Holdings | Beneficial owner | 341,700,000 | 34.17% | | K Luxe Holdings Limited | Beneficial owner | 163,900,000 | 16.39% | [Share Option Scheme](index=24&type=section&id=Share%20Option%20Scheme) The company adopted a ten-year share option scheme on October 15, 2019, to incentivize and retain talent, with a total of **100 million** shares (representing **10%** of issued share capital) available for grant as of H1 2021, though no options have been granted, exercised, cancelled, or lapsed - A total of **100 million** shares, representing **10%** of the issued share capital, are available for issuance under the share option scheme, with no options granted or outstanding as of the period end[110](index=110&type=chunk) [Corporate Governance](index=24&type=section&id=Corporate%20Governance) The company complied with the Corporate Governance Code in H1 2021, with one deviation where the roles of Chairman and Chief Executive Officer are held by the same person (Mr. Tan), which the Board believes contributes to effective management and business development, balanced by sufficient independent non-executive directors - The company complied with the Corporate Governance Code, with a deviation from the requirement that the roles of Chairman and Chief Executive Officer should be separate, as Mr. Tan serves as both, which the Board believes is in the Group's best interest[114](index=114&type=chunk) [Audit Committee](index=27&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors and chaired by Mr. Leung Yau Man, reviewed and approved the unaudited interim financial results for the six months ended June 30, 2021, confirming their preparation in accordance with applicable accounting standards and listing rules, with adequate disclosures - The Audit Committee, composed of three independent non-executive directors, has reviewed and approved the unaudited interim financial results for the current period[119](index=119&type=chunk) [Condensed Consolidated Financial Statements](index=28&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the Group's condensed consolidated financial statements, including the statement of comprehensive income, statement of financial position, and explanatory notes [Condensed Consolidated Statement of Comprehensive Income](index=28&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2021, the Group reported revenue of **S$8.54 million**, a **133%** increase year-on-year, with gross profit turning from a **S$5.62 million** loss to a **S$0.61 million** profit, and loss for the period significantly narrowing from **S$9.07 million** to **S$3.00 million** Condensed Consolidated Statement of Comprehensive Income Summary (For the six months ended June 30) | Item | 2021 (S$) | 2020 (S$) | | :--- | :--- | :--- | | Revenue | 8,540,040 | 3,667,624 | | Cost of sales | (7,928,096) | (9,289,222) | | Gross profit/(loss) | 611,944 | (5,621,598) | | Loss after income tax | (3,004,143) | (9,067,305) | | Loss attributable to equity holders of the Company | (2,944,630) | (9,067,305) | | Basic loss per share (S$ cents) | (0.29) | (0.93) | [Condensed Consolidated Statement of Financial Position](index=29&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2021, the Group's total assets were **S$48.85 million**, total liabilities **S$12.58 million**, and total equity **S$36.28 million**, with both total assets and total equity decreasing compared to the end of 2020, reflecting the impact of operating losses during the period Condensed Consolidated Statement of Financial Position Summary | Item | June 30, 2021 (S$) | December 31, 2020 (S$) | | :--- | :--- | :--- | | Total assets | 48,851,346 | 53,116,961 | | Total liabilities | 12,576,052 | 13,856,309 | | Total equity | 36,275,294 | 39,260,652 | [Notes to the Condensed Consolidated Interim Financial Statements](index=31&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) The notes to the financial statements provide detailed explanations of key accounting policies, financial risk management, revenue breakdown, various expenses, earnings per share calculation, and major asset and liability items, highlighting that revenue primarily stems from demolition services, with significant expenses in subcontractor fees, employee benefits, and depreciation, and basic loss per share at **S$0.29 cents** - Note 4.1: The Group monitors capital on a gearing ratio basis, which increased to **8%** as of June 30, 2021, from **6%** at the end of 2020[141](index=141&type=chunk) - Note 5: Revenue primarily derived from providing demolition services, accounting for **94.3%** of total revenue[154](index=154&type=chunk) - Note 10: Basic loss per share was **S$0.29 cents**, a significant reduction from **S$0.93 cents** in the prior period[175](index=175&type=chunk)

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].