Financial Performance - Total revenue for the fiscal year ending December 31, 2024, was SGD 50,241,000, representing an increase of 10.4% from SGD 45,644,000 in 2023[4] - Gross profit decreased to SGD 11,477,000, down 4.6% from SGD 12,029,000 in the previous year[4] - The company reported a net loss of SGD 18,255,000 for the fiscal year, compared to a net loss of SGD 4,112,000 in 2023, indicating a significant increase in losses[4] - Basic and diluted loss per share was SGD 0.35, compared to SGD 0.06 in the previous year, indicating a worsening financial position[5] - The company reported a pre-tax loss of SGD 18,227,000 for 2024, compared to a loss of SGD 3,217,000 in 2023[12] - The group recorded a net loss of SGD 18.3 million in FY2024, compared to a loss of SGD 4.1 million in FY2023, primarily due to share-based payments and expenses related to expanding minimally invasive surgical solutions in China[38] Revenue Breakdown - Customer contract revenue for 2024 was SGD 41,822,000, up 12.5% from SGD 37,029,000 in 2023[11] - Revenue from dormitory services generated rental income of SGD 8,419,000, slightly down from SGD 8,615,000 in 2023[11] - Revenue from minimally invasive surgical solutions and related services rose from SGD 20.4 million in FY2023 to SGD 25.9 million in FY2024, a significant increase of 26.9%[30] - The group experienced a slight decline in revenue from labor dispatch and related services, from SGD 15.8 million in FY2023 to SGD 15.1 million in FY2024, attributed to a sluggish market in Singapore[31] Expenses and Costs - Administrative expenses surged to SGD 31,942,000, up 100% from SGD 15,941,000 in the prior year[4] - The company incurred total financing costs of SGD 773,000 in 2024, significantly higher than SGD 221,000 in 2023[16] - Research and development expenses increased to SGD 850,000 in 2024 from SGD 633,000 in 2023[17] - The company reported a significant increase in employee costs, totaling SGD 30,545,000 in 2024, compared to SGD 18,324,000 in 2023[17] - Administrative expenses increased by SGD 16.0 million, mainly due to share-based payments of SGD 13.2 million and hiring of industry professionals[35] Assets and Liabilities - Total assets decreased to SGD 58,867,000 from SGD 62,220,000, reflecting a decline of 5.5%[6] - Cash and cash equivalents dropped significantly to SGD 10,446,000 from SGD 20,196,000, a decrease of 48.2%[6] - The company’s total liabilities increased to SGD 26,088,000, up from SGD 24,730,000, marking a rise of 5.5%[7] - The company’s non-current assets rose to SGD 28,703,000, up from SGD 19,538,000, an increase of 46.7%[6] - Trade receivables decreased to SGD 4,856,000 from SGD 5,531,000, a decline of 12.2%[6] - Trade payables decreased to SGD 5,129,000 in 2024 from SGD 5,462,000 in 2023, with accrued operating expenses increasing to SGD 2,543,000 from SGD 2,371,000[23] Shareholder Information - The company did not declare or pay any dividends for the years ended December 31, 2024, and 2023[18] - The company completed a share split on December 12, 2024, adjusting the number of shares from 1,292,500,000 to 5,170,000,000[24] - A total of 128,603,750 share options were granted on January 9, 2024, with an exercise price of HKD 2.54 per share[74][75] - As of December 31, 2024, there are 509,245,000 unexercised stock options, adjusted for the share split effective on December 12, 2024[78] Market and Strategic Outlook - The company plans to expand its distribution network and develop new products to enhance competitiveness in the medical industry[26] - The minimally invasive surgical device market in China is projected to grow from USD 1.71 billion in 2025 to USD 2.68 billion by 2030, with a compound annual growth rate of 9.45% from 2024 to 2029[26] - The company is considering diversifying its business and expanding into the Asia-Pacific region, particularly China, to improve business prospects[28] - The company aims to leverage advantages in China, Hong Kong, and Singapore to explore new investment opportunities and enhance long-term economic benefits for shareholders[28] Risk Management - The group faces cash flow interest rate risk due to floating interest rates on bank balances and fixed-rate financing leases, with no current interest rate hedging policy in place[61] - The group is exposed to foreign currency risk due to bank balances and financial assets denominated in USD and RMB, which are not the functional currencies of the group entities[62] - Credit risk has been significantly reduced through established policies for credit limits and monitoring overdue debts, with management regularly reviewing the recoverability of trade debts[64] - The group maintains sufficient levels of cash and cash equivalents to manage liquidity risk and mitigate cash flow volatility[65] Corporate Governance - The audit committee reviewed the annual performance and confirmed that the consolidated financial statements were prepared in accordance with applicable accounting standards[87] - The company maintained sufficient public float throughout the year as per listing rules[89] - The board has adopted the corporate governance code and complied with all applicable provisions during the year[86] - The company expresses gratitude to all customers, management, employees, business partners, and shareholders for their continued support[91]

[Company Overview and Strategic Focus](index=23&type=section&id=Company%20Overview%20and%20Strategic%20Focus) [Company Profile and Business Changes](index=23&type=section&id=Company%20Profile%20and%20Business%20Changes) Jinhai Medical Technology (formerly Jinhai International Group) is a Singapore-headquartered service provider with core businesses including manpower secondment and dormitory services; the company officially changed its name in December 2023 to reflect its strategic transformation towards the healthcare sector, shifting its business focus to providing minimally invasive surgical solutions and related medical products - The company's principal businesses include Singapore's manpower secondment, dormitory, IT, and construction support services, as well as minimally invasive surgical solutions and medical products in China[11](index=11&type=chunk)[46](index=46&type=chunk) - To reflect its strategic direction towards developing medical businesses, the company changed its name to "Jinhai Medical Technology Co., Ltd." on December 20, 2023, and adopted a new logo[47](index=47&type=chunk) [Key Operating Highlights](index=23&type=section&id=Key%20Operating%20Highlights) In the first half of 2024, the company achieved high-speed performance growth, with total revenue increasing by **116.4%** year-on-year to **SGD 25.9 million** and gross profit growing to **SGD 7.4 million**, primarily driven by the strong performance of its minimally invasive surgical solutions and medical products business Key Performance Indicators for H1 2024 (vs H1 2023) | Indicator | H1 2024 (Thousand SGD) | H1 2023 (Thousand SGD) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 25,937 | 11,983 | +116.4% | | Gross Profit | 7,422 | 5,049 | +47.0% | [Financial Performance Analysis](index=5&type=section&id=Financial%20Performance%20Analysis) [Consolidated Income Statement Analysis](index=5&type=section&id=Consolidated%20Income%20Statement%20Analysis) In the first half of 2024, the company turned from profit to loss, recording a net loss attributable to owners of **SGD 6 million**, compared to a profit of **SGD 0.94 million** in the same period last year, primarily due to a significant increase in administrative expenses, especially **SGD 6.5 million** in equity-settled share-based payment expenses from share option grants, while the gross profit margin decreased from **42.1%** to **28.6%** due to the expanded revenue contribution from lower-margin medical businesses Condensed Consolidated Income Statement Key Data | Indicator (Thousand SGD) | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Revenue | 25,937 | 11,983 | | Gross Profit | 7,422 | 5,049 | | Administrative Expenses | (13,675) | (4,801) | | (Loss)/Profit Before Tax | (5,941) | 592 | | (Loss)/Profit Attributable to Owners of the Company | (6,043) | 940 | | Basic (Loss)/Earnings Per Share (Singapore cents) | (0.47) | 0.08 | - Administrative expenses increased from **SGD 4.8 million** to **SGD 13.7 million**, primarily due to an increase of **SGD 6.5 million** in equity-settled share-based payments related to the grant of share options[54](index=54&type=chunk) - Gross profit margin decreased from **42.1%** in the same period last year to **28.6%**, mainly due to the increased revenue contribution from the minimally invasive surgical solutions business, which has a relatively lower gross profit margin[52](index=52&type=chunk) [Segment Revenue Analysis](index=24&type=section&id=Segment%20Revenue%20Analysis) During the reporting period, the medical business became the core growth engine, with revenue from the minimally invasive surgical solutions and medical products segment soaring over **30 times** year-on-year to **SGD 12.3 million**, accounting for **47.4%** of total revenue, while dormitory services revenue also achieved a significant **53.8%** growth, and traditional manpower secondment business revenue remained stable Revenue Breakdown by Business Segment (Thousand SGD) | Business Segment | H1 2024 | H1 2023 | YoY Growth | | :--- | :--- | :--- | :--- | | Minimally Invasive Surgical Solutions and Medical Products | 12,302 | 396 | +3,006.6% | | Manpower Secondment and Support Services | 7,634 | 7,540 | +1.2% | | Dormitory Services | 5,611 | 3,649 | +53.8% | | Construction Support Services | 140 | 171 | -18.1% | | IT Services | 250 | 227 | +10.1% | | **Total** | **25,937** | **11,983** | **+116.4%** | - The significant growth in medical business was primarily driven by the launch of new products and active expansion of distribution channels in the Chinese market[51](index=51&type=chunk) - Dormitory services revenue growth was mainly due to strong market demand and increased fee rates[51](index=51&type=chunk) [Financial Position and Cash Flow](index=6&type=section&id=Financial%20Position%20and%20Cash%20Flow) As of June 30, 2024, the company's total assets increased to **SGD 64.85 million**, with the gearing ratio slightly rising to **30.0%**; operating cash flow turned positive, recording a net inflow of **SGD 0.844 million**, and cash and cash equivalents at period-end stood at **SGD 13.17 million**, maintaining a stable financial position Key Financial Position Indicators (Thousand SGD) | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Assets | 64,851 | 62,220 | | Total Liabilities | 27,154 | 24,730 | | Total Equity | 37,697 | 37,490 | Cash Flow Statement Summary (Thousand SGD) | Indicator | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 844 | (846) | | Net Cash from Investing Activities | (7,592) | (120) | | Net Cash from Financing Activities | (178) | (1,443) | | Cash and Cash Equivalents at End of Period | 13,173 | 12,937 | - The gearing ratio (total borrowings/total equity) increased from **26.9%** to **30.0%**[67](index=67&type=chunk) [Management Discussion and Analysis](index=23&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Outlook](index=23&type=section&id=Business%20Review%20and%20Outlook) Management emphasizes that the company's strategic focus has shifted to the minimally invasive surgical solutions business in China, a market projected to grow at a **CAGR of 9.45%** between 2024 and 2029; going forward, the company will continue to strengthen its position in the medical industry by enhancing R&D, expanding distribution networks, developing new products, and integrating resources, while also considering capital market financing to support business development - Management believes the Chinese minimally invasive surgical instruments market has significant potential, with an estimated market size of **USD 2.45 billion** by 2029, growing at a **CAGR of 9.45%**[48](index=48&type=chunk) - The company will enhance its competitiveness in the medical business through four initiatives: (a) strengthening development capabilities; (b) expanding distribution networks; (c) developing new products; and (d) promoting resource integration[48](index=48&type=chunk) - The Board is considering exploring various fundraising methods in Hong Kong or other capital markets to support business development[48](index=48&type=chunk) [Liquidity, Financial Resources, and Gearing Ratio](index=26&type=section&id=Liquidity%2C%20Financial%20Resources%2C%20and%20Gearing%20Ratio) The company meets its operational needs through internal funds, listing proceeds, and placement proceeds; the October 2023 placement raised net proceeds of **HKD 99 million**, of which approximately **HKD 69 million** was planned for expanding the medical industry business, and as of June 30, 2024, **HKD 41.1 million** of these funds had been utilized Use of Proceeds from 2023 Placement (Million HKD) | Proposed Use | Planned Amount | Utilized Amount | Unutilized Amount | | :--- | :--- | :--- | :--- | | Expansion of Medical Industry Business | 69.0 | 41.1 | 27.9 | | Expansion of Manpower Secondment and Support Services Business | 15.0 | 1.2 | 13.8 | | General Working Capital | 15.0 | 15.0 | – | | **Total** | **99.0** | **57.3** | **41.7** | - As of June 30, 2024, the company held cash and cash equivalents of **SGD 13.2 million**, primarily denominated in Renminbi (**71.1%**) and Hong Kong Dollars (**27.5%**)[66](index=66&type=chunk) [Significant Investments, Acquisitions, and Disposals of Subsidiaries, Associates, and Joint Ventures](index=30&type=section&id=Significant%20Investments%2C%20Acquisitions%2C%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%2C%20and%20Joint%20Ventures) During the reporting period, the company completed a significant property acquisition, with a wholly-owned subsidiary acquiring a property in Singapore for **SGD 10.18 million**, a transaction completed on January 31, 2024; additionally, the company holds listed equity and fund investments valued at **SGD 4.5 million** - The company's wholly-owned subsidiary acquired a property in Singapore for **SGD 10.18 million**, with the transaction completed on January 31, 2024[71](index=71&type=chunk) - On November 30, 2023, the company completed the acquisition of **100%** equity in Neuhaus Engineering Pte. Ltd., making it an indirect wholly-owned subsidiary[71](index=71&type=chunk) - As of June 30, 2024, the Group held listed equity and fund investments valued at **SGD 4.5 million**, aiming for dividend income and capital appreciation[72](index=72&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces primary market risks including interest rate risk, foreign exchange risk, credit risk, liquidity risk, and equity price risk; foreign exchange risk is relatively low as most operations are denominated in the entities' functional currencies, but holding Hong Kong Dollar and Renminbi cash introduces some exchange rate volatility; the company manages equity price risk through diversified investment portfolios and has credit approval procedures to mitigate credit risk - Foreign exchange risk primarily arises from placement proceeds denominated in Hong Kong Dollars and Renminbi funds from operations in China, resulting in a currency translation difference of **SGD 0.3 million** and an exchange gain of **SGD 0.4 million** during the reporting period[68](index=68&type=chunk)[76](index=76&type=chunk) - To mitigate credit risk, the company conducts credit assessments for new customers and regularly reviews the recoverability of accounts receivable[77](index=77&type=chunk) - To manage equity price risk, the company adopts a diversified investment portfolio strategy[79](index=79&type=chunk) [Corporate Governance and Other Information](index=33&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares, and Debentures of the Company and its Associated Corporations](index=33&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%2C%20and%20Debentures%20of%20the%20Company%20and%20its%20Associated%20Corporations) As of June 30, 2024, Mr. Chan Kwok Po, the company's Chairman and Executive Director, beneficially held **632,500,000 shares**, representing **48.94%** of the issued share capital, through his wholly-owned Baolai International Limited, making him the controlling shareholder of the company - Chairman Mr. Chan Kwok Po is deemed to have an interest in **632,500,000 shares** held by Baolai International Limited, representing **48.94%** of the company's total share capital[81](index=81&type=chunk)[83](index=83&type=chunk) [Share Option Scheme](index=34&type=section&id=Share%20Option%20Scheme) The company adopted a share option scheme in December 2023; on January 9, 2024, a total of approximately **128.6 million** share options were granted under the scheme with an exercise price of **HKD 2.54** per share, which will vest in three tranches contingent on performance targets, and this grant was the primary reason for the significant increase in administrative expenses and net loss during the period - On January 9, 2024, the company granted **128,603,750** share options with an exercise price of **HKD 2.54** and a validity period of **10 years**[86](index=86&type=chunk)[87](index=87&type=chunk) - The share options will vest in three tranches between 2025 and 2027, with vesting percentages of **20%**, **30%**, and **50%** respectively, contingent upon achieving performance targets set by the Board[88](index=88&type=chunk) - The granted share options resulted in approximately **SGD 6.5 million** in equity-settled share-based payment expenses recognized under administrative expenses during the reporting period[30](index=30&type=chunk)[54](index=54&type=chunk)

Financial Performance - For the six months ended June 30, 2024, the company reported revenue of SGD 25,937 thousand, a significant increase from SGD 11,983 thousand in the same period of 2023, representing a growth of approximately 116.5%[3] - The gross profit for the first half of 2024 was SGD 7,422 thousand, compared to SGD 5,049 thousand in the first half of 2023, indicating a growth of about 46.8%[3] - The company incurred a loss before tax of SGD 5,941 thousand for the period, compared to a profit of SGD 592 thousand in the same period last year, reflecting a decline in profitability[3] - The company reported a net loss of SGD 6,043,000 for the six months ended June 30, 2024, compared to a profit of SGD 940,000 in the same period of 2023[23] - The company reported a basic and diluted loss per share of SGD (0.47) for the first half of 2024, compared to earnings of SGD 0.08 per share in the same period of 2023[5] - Gross profit rose from SGD 5.0 million in the first half of 2023 to SGD 7.4 million in the first half of 2024, although the gross margin decreased from 42.1% to 28.6%[35] - Administrative expenses increased significantly from SGD 4.8 million to SGD 13.7 million, primarily due to post-COVID-19 recovery costs and share-based payments[37] - The company recorded a loss attributable to shareholders of SGD 6.0 million in the first half of 2024, compared to a profit of SGD 0.9 million in the same period of 2023[38] Revenue Breakdown - Revenue for the six months ended June 30, 2024, was SGD 25,937,000, a significant increase from SGD 11,983,000 in the same period of 2023, representing a growth of approximately 116%[14] - Revenue from Singapore reached SGD 13,505,000, up from SGD 11,587,000, indicating a growth of about 16.5% year-over-year[14] - Revenue from mainland China surged to SGD 12,432,000, compared to only SGD 396,000 in the previous year, reflecting a remarkable increase of over 3,000%[14] - Revenue from minimally invasive surgical solutions and related medical products surged from SGD 0.4 million to SGD 12.3 million, a staggering increase of 3,006.6%[32] - The revenue from dormitory services increased from SGD 3.6 million to SGD 5.6 million, driven by high market demand and increased pricing in the first half of 2024[34] Assets and Liabilities - The total assets of the company as of June 30, 2024, amounted to SGD 64,851 thousand, an increase from SGD 62,220 thousand as of December 31, 2023[6] - The company's total liabilities increased to SGD 27,154 thousand as of June 30, 2024, compared to SGD 24,730 thousand at the end of 2023, indicating a rise of approximately 9.8%[8] - The net cash balance decreased to SGD 13,173 thousand from SGD 20,196 thousand at the end of 2023, representing a decline of about 34.7%[6] - The group’s total borrowings and lease liabilities as of June 30, 2024, were SGD 11.3 million, an increase from SGD 10.1 million as of December 31, 2023, primarily due to new borrowings[50] - The debt-to-equity ratio as of June 30, 2024, was 30.0%, up from 26.9% as of December 31, 2023[50] Investments and Acquisitions - The company acquired investment properties worth SGD 10,515,000 during the six months ended June 30, 2024, with no acquisitions reported in the same period of 2023[24] - The company completed the acquisition of Neuhaus Engineering Pte. Ltd. on November 30, 2023, making it a wholly-owned subsidiary[54] - The group has reallocated SGD 10.0 million to acquire listed securities in the public market due to delays in acquiring foreign worker dormitories[43] Cash Flow and Financing - The net proceeds from the listing amounted to HKD 82.6 million (equivalent to SGD 14.1 million) after deducting underwriting fees and listing expenses[41] - The group has a remaining undrawn bank financing of SGD 3.0 million as of June 30, 2024, compared to SGD 2.5 million as of December 31, 2023[50] - The group maintains a prudent treasury policy to ensure a robust financial position and closely monitors its liquidity[40] Employee and Shareholder Information - Employee costs for the first half of 2024 were SGD 13.6 million, up from SGD 6.3 million in the first half of 2023[57] - The average number of ordinary shares outstanding increased to 1,292,500 for the six months ended June 30, 2024, compared to 1,230,000 in the same period of 2023[23] - The company granted a total of 128,603,750 share options under the share option plan on January 9, 2024, allowing holders to subscribe for the same number of shares[64] - The exercise price for the share options is set at HKD 2.54 per share, which is the highest of the closing price on the grant date or the average closing price over the previous five trading days[65] - The vesting schedule for the share options includes three tranches: 20% vesting on April 30, 2025, 30% on April 30, 2026, and 50% on April 30, 2027[66] Corporate Governance and Compliance - The company has adopted all applicable principles of the corporate governance code as per the listing rules, with no significant non-compliance reported[71] - The audit committee has reviewed the unaudited interim results and confirmed that the financial information complies with applicable accounting standards and listing rules[72] - The interim results announcement has been published on the Hong Kong Stock Exchange website and the company's website, ensuring transparency for shareholders[73] - All directors confirmed compliance with the trading code for securities transactions during the reporting period[69] Future Plans and Market Outlook - The company plans to continue expanding its service offerings in labor dispatch and IT services, which have shown growth in revenue[12] - The company plans to enhance its competitive position in the medical industry by strengthening development capabilities, expanding distribution networks, and developing new products[30] - The minimally invasive surgical instruments market in China is projected to grow from USD 1.56 billion in 2024 to USD 2.45 billion by 2029, with a compound annual growth rate of 9.45%[30] - The company aims to explore various fundraising methods in capital markets in Hong Kong and other locations to support business development[30] Risk Management - The company is facing economic uncertainty due to inflation and rising interest rates, prompting a more aggressive approach to managing internally generated funds[56] - The company has established policies to mitigate credit risk, including credit limits and approval processes[60] - The company has no interest rate hedging policies currently in place but monitors interest rate risks[58] - The company has no significant contingent liabilities as of June 30, 2024[53] - The company has no significant off-balance-sheet transactions as of June 30, 2024[57] Workforce Changes - The company has reduced its workforce from 694 employees as of December 31, 2023, to 508 employees as of June 30, 2024[57]

Financial Performance - The company recorded revenue of SGD 45.6 million for the fiscal year 2023, an increase of 105% compared to SGD 22.3 million in fiscal year 2022[22]. - Revenue from minimally invasive surgical solutions and related medical products surged to SGD 20.4 million in fiscal year 2023, up from SGD 0.7 million in fiscal year 2022, marking an increase of SGD 19.7 million[24]. - The gross profit increased from SGD 10.1 million in fiscal year 2022 to SGD 12.0 million in fiscal year 2023, although the gross margin decreased from 45.4% to 26.4% due to lower profit margins in the minimally invasive surgical solutions business[25]. - The company reported a loss of SGD 4.1 million for fiscal year 2023, compared to a profit of SGD 0.1 million in fiscal year 2022, mainly due to expenses incurred in expanding the minimally invasive surgical solutions business in China[29]. - The company will not recommend any dividend payment for fiscal year 2023, consistent with the previous fiscal year[29]. Capital Management - The company has recognized the need for stricter cost management measures to conserve cash amid rising inflation and interest rates, marking 2023 as a challenging economic year[15]. - The company has adopted a prudent financial management policy to maintain a healthy financial position and closely monitors its cash flow situation[31]. - The company has cash and cash equivalents of SGD 20.2 million as of December 31, 2023, with 26.1% in SGD, 52.3% in RMB, 2.5% in USD, and 19.1% in HKD[41]. - The group has unutilized bank financing of SGD 2.5 million as of December 31, 2023, compared to SGD 0.5 million as of December 31, 2022[40]. - The company has maintained good relationships with customers and suppliers, implementing a team to address complaints and improve service quality[125]. Business Expansion and Strategy - The company successfully completed the issuance of 62,500,000 new shares at a subscription price of HKD 1.60 per share, raising a total of HKD 100 million, with approximately HKD 69 million allocated for expanding its business in the Chinese medical industry[14]. - The company plans to broaden its product line and enhance R&D capabilities in 2024 to strengthen competitiveness in the growing medical device market driven by an aging population and rising living standards in China[15]. - The company aims to continuously develop new products and expand its distribution network to consolidate its position in the medical industry[15]. - The company aims to diversify its business and expand into the Asia-Pacific region, including providing value-added services such as skills training for labor[21]. - The company plans to use net proceeds of SGD 69 million from the issuance of 62,500,000 new shares to expand its business in the Chinese medical industry[22]. Corporate Governance - The company emphasizes good corporate governance to enhance shareholder value and accountability within its management structure[64]. - The board consists of eight members, including executive directors and independent non-executive directors, ensuring a balanced composition for independent judgment[69]. - The company has established various committees to delegate responsibilities and ensure effective governance practices[67]. - The company has appointed independent non-executive directors to enhance governance and oversight functions[61]. - The board is responsible for overseeing the management of the group's business affairs and overall performance, including major financial and operational decisions[67]. Risk Management - The company has implemented guidelines for risk management and internal control, with financial personnel assigned to ensure proper functioning[103]. - The company emphasizes that risk management systems are designed to manage rather than eliminate risks associated with achieving business objectives[103]. - The company faces cash flow interest rate risk due to floating interest rates on bank balances and has no current interest rate hedging policy[48]. - The company manages foreign currency risk through close monitoring of exchange rate fluctuations, as it holds bank balances and financial assets denominated in USD and HKD[49]. - The company has identified climate-related risks and opportunities that could significantly impact its assets and services[198]. Environmental, Social, and Governance (ESG) - The company has established an environmental management system to address its carbon footprint and water conservation efforts[122]. - The company is committed to sustainable development, focusing on creating long-term value for stakeholders[122]. - The company reported a reduction in nitrogen oxides (NOx) emissions from 64.74 kg in 2022 to 62.54 kg in 2023[180]. - The total greenhouse gas emissions for the group in 2023 were 637.76 tons of CO2 equivalent, a slight decrease from 639.77 tons in 2022[185]. - The board is committed to supporting Singapore's national climate goal of achieving net-zero emissions by 2050[170]. Shareholder Communication - The board will communicate with shareholders promptly regarding significant events[15]. - The company ensures effective communication with shareholders and investors through various channels, including financial reports and annual general meetings[111]. - The company has implemented a fair disclosure policy to ensure timely and non-exclusive information dissemination[105]. - The board held four regular meetings during the year, including the approval of the audited consolidated financial statements for the year ended December 31, 2022[76]. - The company held two extraordinary general meetings on December 20 and 29, 2023, to approve changes to the company name and adopt a share option scheme[78].

Financial Performance - The company's revenue for the fiscal year ending December 31, 2023, was SGD 45,644,000, a significant increase of 105.5% compared to SGD 22,280,000 in 2022[2] - Gross profit for the year was SGD 12,029,000, up from SGD 10,116,000 in the previous year, reflecting a growth of 18.9%[2] - The company reported a net loss of SGD 4,112,000 for the year, compared to a profit of SGD 116,000 in 2022, indicating a substantial decline in profitability[2] - The company reported a net profit of SGD 1,045 thousand for 2023, recovering from a loss of SGD 4,112 thousand in 2022[12] - The total tax expense for 2023 was SGD 895 thousand, an increase from SGD 668 thousand in 2022, indicating a growth of 33.9%[18] Assets and Liabilities - Total assets increased to SGD 62,220,000 in 2023 from SGD 40,271,000 in 2022, representing a growth of 54.5%[4] - Current assets also increased to SGD 42,682,000 from SGD 33,302,000, reflecting a growth of 28.2%[4] - Non-current assets grew significantly, with property, plant, and equipment valued at SGD 2,085,000 compared to SGD 4,258,000 in the previous year[4] - Trade receivables increased to SGD 7.2 million in fiscal year 2023 from SGD 3.2 million in fiscal year 2022, with a provision for impairment of SGD 1.7 million[21] - As of December 31, 2023, the group's total borrowings and lease liabilities amounted to SGD 10.1 million, up from SGD 4.4 million a year earlier, primarily due to borrowing for the acquisition of a subsidiary[46] - The debt-to-equity ratio increased to 26.9% as of December 31, 2023, compared to 18.1% a year earlier, reflecting the increase in borrowings[46] Revenue Breakdown - Revenue from Singapore increased to SGD 25,213 thousand in 2023, up from SGD 21,624 thousand in 2022, reflecting a growth of 16.5%[10] - Revenue from China surged to SGD 20,431 thousand in 2023, compared to SGD 656 thousand in 2022, indicating a remarkable growth of 3,113.5%[10] - Service revenue, including labor dispatch and related services, rose to SGD 15,750 thousand in 2023 from SGD 15,018 thousand in 2022, an increase of 4.9%[10] - Revenue from minimally invasive surgical solutions and related medical products surged to SGD 20.4 million in fiscal year 2023, up from SGD 656,000 in fiscal year 2022, representing an increase of SGD 19.8 million[30] - Dormitory service revenue increased from SGD 5.8 million in FY2022 to SGD 8.6 million in FY2023, primarily due to previous city lockdowns and regulatory changes affecting worker dormitory capacity[31] Expenses and Costs - The company incurred financing costs of SGD 221,000, which is an increase from SGD 85,000 in the previous year[2] - Administrative expenses increased by SGD 5.7 million, primarily due to promotional and marketing expenses for the new minimally invasive surgical solutions business[34] - The group recorded a loss of SGD 4.1 million in FY2023, compared to a profit of SGD 0.1 million in FY2022, mainly due to expenses related to the expansion of minimally invasive surgical solutions in China[36] - The total employee costs for FY2023 were SGD 18.3 million, up from SGD 12.3 million in FY2022[53] Share Issuance and Capital Allocation - The company issued 62.5 million new ordinary shares at a subscription price of HKD 1.60 per share, raising a total cash amount of HKD 100 million (approximately SGD 17.47 million)[27] - The company plans to allocate SGD 69 million of the net proceeds from the share issuance to expand its business in the Chinese medical industry[28] - The group plans to allocate SGD 69.0 million for expanding its medical services and SGD 15.0 million for general operational funds by December 2024[48] Governance and Compliance - The company has adopted new and revised International Financial Reporting Standards, which did not result in significant changes to its accounting policies or financial statements[8] - The audit committee has reviewed the audited annual performance and confirmed that the consolidated financial statements are prepared in accordance with applicable accounting standards and regulations[62] - The financial figures for the year ending December 31, 2023, have been verified by the auditors, ensuring consistency with the audited financial statements[63] - The company has adhered to all applicable provisions of the corporate governance code throughout the year[61] - The annual report contains all information required by the listing rules and will be made available to shareholders in a timely manner[64] Employee and Operational Insights - The group employed 694 employees as of December 31, 2023, an increase from 520 employees in the previous year[53] - The group recorded a net capital expenditure of SGD 4.7 million in FY2023, compared to SGD 3.3 million in FY2022, primarily for the purchase of properties, plants, and equipment[51] Market Outlook - The company anticipates challenges in the Singapore construction industry in 2024, with expected economic growth slowing to between 1.0% and 3.0%[28] - The company aims to enhance its competitiveness by broadening its product line and improving R&D capabilities in response to increasing demand for medical devices in China[28]

Core Viewpoint - Jinhai International Group Holdings Limited is changing its name to Jinhai Medical Technology Limited, effective December 28, 2023, following a special resolution passed at a shareholder meeting [1] Group 1: Company Name Change - The company has received a certificate of change of name from the Registrar of Companies in the Cayman Islands [1] - The dual foreign name will also change from "今海国际集团控股有限公司" to "今海医疗科技股份有限公司" [1] Group 2: Stock Trading Changes - The stock trading names will change from "JINHAI INTL" and "今海国际" to "JINHAI MED TECH" and "今海医疗科技" respectively, effective from 9:00 AM on February 16, 2024 [1] - The stock code will remain unchanged at "2225" [1]

Financial Performance - Total revenue for the six months ended June 30, 2023, was SGD 11,982,837, a decrease of 18.6% compared to SGD 14,707,178 in the same period of 2022[5] - Gross profit for the same period was SGD 5,048,441, slightly up from SGD 5,028,537, indicating a stable gross margin[5] - The net profit after tax for the six months was SGD 584,393, down 56.1% from SGD 1,332,972 in the previous year[5] - Total comprehensive income for the period was SGD 383,275, a decline of 61.9% compared to SGD 1,007,138 in the prior year[5] - Basic and diluted earnings per share for the period were 0.08 cents, down from 0.11 cents in the previous year[5] - The company reported a pre-tax profit of SGD 590,165 for the six months ended June 30, 2023, a decrease of 63.9% compared to SGD 1,632,634 in the same period of 2022[10] - Confirmed revenue for the six months ended June 30, 2023, was SGD 11,982,837, a decrease of 18.5% compared to SGD 14,707,178 in 2022[18] - The group recorded a profit attributable to shareholders of approximately SGD 0.9 million in the first half of 2023, down from SGD 1.4 million in the same period of 2022[40] Assets and Liabilities - Current assets increased to SGD 39,340,316 as of June 30, 2023, compared to SGD 33,301,539 at the end of 2022, reflecting improved liquidity[6] - Total liabilities increased to SGD 20,250,653 from SGD 13,998,576, suggesting a rise in financial obligations[7] - The company's net asset value improved to SGD 25,442,652 as of June 30, 2023, compared to SGD 24,592,206 at the end of 2022[7] - Trade receivables rose significantly to SGD 8,623,294 from SGD 2,211,612, indicating a potential increase in sales or credit terms[6] - Trade payables increased to SGD 8,730,909 as of June 30, 2023, compared to SGD 476,557 at the end of 2022[29] - The group's total lease liabilities as of June 30, 2023, were approximately SGD 3.5 million, an increase from SGD 2.5 million as of December 31, 2022, due to lease renewals[52] - The asset-to-liability ratio as of June 30, 2023, was approximately 21.0%, up from 18.1% as of December 31, 2022[52] Cash Flow and Investments - Operating cash flow generated was negative SGD 1,110,615, compared to positive SGD 1,713,778 in the previous year, indicating a significant decline in operational efficiency[10] - The company incurred a net cash outflow from investing activities of SGD 120,891, a significant improvement from SGD 899,223 in the previous year[11] - Cash and cash equivalents at the end of the period stood at SGD 12,936,556, down from SGD 14,261,423 at the end of June 2022[11] - The group has approximately SGD 527,639 in undrawn bank financing available as of June 30, 2023[52] - The company maintains cash and cash equivalents at a level deemed sufficient by management to meet operational needs and reduce cash flow volatility[61] Revenue Breakdown - Revenue from labor dispatch and support services increased to SGD 7,540,287, up 11.2% from SGD 6,782,648 in 2022[16] - Revenue from dormitory services rose from approximately SGD 2.8 million to about SGD 3.6 million, primarily due to an increase in occupancy rates[36] - Revenue from minimally invasive surgical solution products decreased by approximately SGD 4.2 million, attributed to operations in China[36] - Other income for the six months ended June 30, 2023, totaled SGD 706,551, an increase of 54.4% from SGD 457,682 in 2022[20] - Other income increased from approximately SGD 0.46 million to about SGD 0.70 million, mainly due to procurement service fees recognized in Hong Kong[38] Expenses and Costs - The company paid interest of SGD 48,280, which is an increase from SGD 25,087 in the previous year, reflecting higher financing costs[11] - Administrative expenses rose from approximately SGD 4.0 million to about SGD 4.8 million, primarily due to the gradual recovery of the construction industry post-COVID-19[38] - The group incurred employee costs of approximately SGD 6.3 million in the first half of 2023, compared to SGD 4.8 million in the first half of 2022[57] Shareholder Information - As of June 30, 2023, the company has 632,500,000 shares outstanding, representing approximately 51.42% ownership by its major shareholder, Bao Lai International Limited[66] - The company did not declare or pay any dividends for the six months ended June 30, 2023, consistent with the previous year[25] - The company has not adopted any share option schemes during the reporting period[67] Future Plans and Developments - The board is considering expanding existing services to include value-added services such as skills training and workforce enhancement in the Asia-Pacific region, including China[36] - The group plans to explore various fundraising methods in capital markets in Hong Kong and/or other locations to support business development[36] Miscellaneous - The company has not disclosed the total transaction price allocated to unsatisfied performance obligations as they are part of contracts expected to be completed within one year[16] - The company primarily operates in Singapore, with nearly all revenue generated from this region, while some revenue from minimally invasive surgical solutions comes from China[17] - The group has not made any significant acquisitions or disposals of subsidiaries, associates, or joint ventures in the first half of 2023[56] - There were no significant events affecting the group from June 30, 2023, to the date of this interim report[69] - The audit committee has reviewed the unaudited interim results and found them to be prepared in accordance with applicable accounting standards and regulations[73]

[Financial Highlights](index=1&type=section&id=Financial_Highlights) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Consolidated_Statement_of_Profit_or_Loss_and_Other_Comprehensive_Income) In H1 2023, the Group's total revenue decreased by 18.5% to **SGD 12.0 million**, with profit attributable to owners declining by 33.0% to **SGD 0.939 million** due to reduced China medical product sales and increased expenses | Metric | Six Months Ended June 30, 2023 (SGD) | Six Months Ended June 30, 2022 (SGD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 11,982,837 | 14,707,178 | -18.5% | | Gross Profit | 5,048,441 | 5,028,537 | +0.4% | | Profit Before Tax | 590,165 | 1,632,634 | -63.8% | | Profit for the Period | 584,393 | 1,332,972 | -56.2% | | Profit Attributable to Owners of the Company | 938,685 | 1,402,136 | -33.0% | - Basic and diluted earnings per share decreased from **0.11 Singapore cents** in the prior period to **0.08 Singapore cents**[4](index=4&type=chunk)[21](index=21&type=chunk) [Consolidated Statement of Financial Position](index=3&type=section&id=Consolidated_Statement_of_Financial_Position) As of June 30, 2023, the Group's total assets increased to **SGD 46.99 million** from year-end 2022, with net assets rising to **SGD 25.44 million**, maintaining a robust financial position despite significant increases in trade receivables and payables | Metric | June 30, 2023 (SGD) | December 31, 2022 (SGD) | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 7,654,359 | 6,970,288 | +9.8% | | Current Assets | 39,340,316 | 33,301,539 | +18.1% | | **Total Assets** | **46,994,675** | **40,271,827** | **+16.7%** | | Current Liabilities | 20,250,653 | 13,998,576 | +44.7% | | Non-current Liabilities | 1,301,370 | 1,681,045 | -22.6% | | **Total Liabilities** | **21,552,023** | **15,679,621** | **+37.4%** | | **Net Assets** | **25,442,652** | **24,592,206** | **+3.5%** | [Dividends](index=8&type=section&id=Dividends) The Board resolved not to declare an interim dividend for the six months ended June 30, 2023, consistent with the prior year's policy - The Board decided not to declare an interim dividend for the first half of 2023 (H1 2022: nil)[20](index=20&type=chunk)[33](index=33&type=chunk) [Management Discussion and Analysis](index=10&type=section&id=Management_Discussion_and_Analysis) [Business Review and Outlook](index=10&type=section&id=Business_Review_and_Outlook) The Group's core business in Singapore includes labor secondment and dormitory services, with future plans to diversify into Asia Pacific, offer value-added labor services, and explore capital market financing, despite H1 2023 revenue decline due to China medical business - The Group's principal activities involve providing labor secondment and related services to construction contractors in Singapore, supplemented by dormitory services, IT services, construction-related services, and minimally invasive surgical solution products in China[6](index=6&type=chunk)[25](index=25&type=chunk) - Looking ahead, the Group anticipates continued challenges in Singapore's construction sector and plans to expand its business into the Asia Pacific region, including China, while providing value-added services such as skills training for the workforce[25](index=25&type=chunk) - The Group will continue to enhance its medical device business development capabilities and distribution network, while exploring various financing options in Hong Kong or other capital markets to support business growth[25](index=25&type=chunk) [Financial Review](index=11&type=section&id=Financial_Review) In H1 2023, the Group's total revenue decreased by 18.5% due to a sharp decline in China medical product sales; however, gross margin significantly improved from **34.2%** to **42.1%** driven by the recovery of high-margin dormitory services, though increased administrative expenses and fair value losses led to a substantial net profit decline [Revenue Analysis](index=11&type=section&id=Revenue_Analysis) Total revenue in H1 2023 decreased by 18.5% to **SGD 11.98 million**, as growth in labor secondment (**11.2%**) and dormitory services (**27.7%**) was offset by a **91.3%** drop in minimally invasive surgical product revenue, with Singapore revenue increasing while China's declined significantly | Business Segment | H1 2023 (SGD) | H1 2022 (SGD) | Change (SGD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Labor Secondment and Related Services | 7,540,287 | 6,782,648 | +757,639 | +11.2% | | Dormitory Services | 3,649,302 | 2,857,954 | +791,348 | +27.7% | | Construction-related Services | 170,868 | 201,134 | -30,266 | -15.1% | | IT Services | 226,380 | 214,350 | +12,030 | +5.6% | | Minimally Invasive Surgical Solution Products | 396,000 | 4,651,092 | -4,255,092 | -91.5% | | **Total** | **11,982,837** | **14,707,178** | **-2,724,341** | **-18.5%** | - The increase in labor secondment service revenue was due to an accelerated resumption of work amid persistent labor shortages; dormitory service revenue growth benefited from higher occupancy rates[27](index=27&type=chunk)[28](index=28&type=chunk) | Region | H1 2023 (SGD) | H1 2022 (SGD) | Change (%) | | :--- | :--- | :--- | :--- | | Singapore | 11,586,837 | 10,056,086 | +15.2% | | China | 396,000 | 4,651,092 | -91.5% | | **Total** | **11,982,837** | **14,707,178** | **-18.5%** | [Profitability Analysis](index=12&type=section&id=Profitability_Analysis) Despite revenue decline, gross profit slightly increased from **SGD 5.0 million** to **SGD 5.1 million**, with gross margin improving from **34.2%** to **42.1%** due to the recovery of higher-margin dormitory services; however, profit attributable to owners decreased from **SGD 1.4 million** to **SGD 0.9 million** due to increased administrative expenses and other losses - Gross margin increased from **34.2%** in the prior period to **42.1%**, primarily due to the recovery of the dormitory services business[29](index=29&type=chunk) - Profit attributable to owners of the Company decreased from **SGD 1.4 million** in the prior period to approximately **SGD 0.9 million**, mainly attributed to the slow business recovery post-COVID-19 pandemic[32](index=32&type=chunk) [Expense Analysis](index=12&type=section&id=Expense_Analysis) Administrative expenses increased by approximately **20%** year-on-year to **SGD 4.8 million**, primarily due to the slow recovery of construction projects post-pandemic; net other gains and losses recorded a **SGD 0.308 million** loss, compared to a **SGD 0.219 million** gain in the prior period, mainly from fair value changes of financial assets at fair value through profit or loss - Administrative expenses increased from **SGD 4.0 million** in the prior period to **SGD 4.8 million**, primarily due to the slow recovery of construction projects post-pandemic[30](index=30&type=chunk) - Net other losses of approximately **SGD 0.3 million** were recorded (prior period: **SGD 0.2 million** gain), mainly due to fair value losses on financial assets at fair value through profit or loss[31](index=31&type=chunk) [Liquidity and Capital Resources](index=13&type=section&id=Liquidity_and_Capital_Resources) The Group maintains a robust financial position, primarily relying on internal funds and IPO proceeds; as of June 30, 2023, cash and cash equivalents were approximately **SGD 12.9 million**, with the gearing ratio increasing from **18.1%** to **21.0%** due to increased lease liabilities from renewals, and approximately **HKD 51.5 million** of IPO proceeds remaining unutilized with extended timelines for some projects - As of June 30, 2023, the Group's cash and cash equivalents were approximately **SGD 12.9 million**[44](index=44&type=chunk) - The gearing ratio (total borrowings/total equity) increased from **18.1%** at the end of 2022 to **21.0%**, primarily due to increased lease liabilities from renewals during the period[45](index=45&type=chunk) | Proposed Use of Net Proceeds from Listing | Unutilized Amount (million HKD) | Expected Timeline for Full Utilization of Unutilized Net Proceeds | | :--- | :--- | :--- | | Acquisition of an additional foreign worker dormitory | 46.6 | Before end of June 2024 | | Acquisition of 10 additional trucks | 1.9 | Before end of June 2024 | | Injection of registered capital into Jinhai Medical | 3.0 | Before end of October 2024 | | **Total Unutilized** | **51.5** | | [Other Disclosures](index=15&type=section&id=Other_Disclosures) [Risk Management](index=15&type=section&id=Risk_Management) The Group faces key market risks including interest rate, foreign exchange, credit, and share price risks, managed through close market monitoring and credit control policies, though no interest rate hedging is currently employed; the appreciation of HKD, in which most share offer proceeds are denominated, resulted in approximately **SGD 0.1 million** in unrealized exchange gains - The Group's primary risks include: interest rate risk (from bank balances and fixed-rate finance leases), foreign exchange risk (from USD, RMB, and HKD assets), credit risk (from trade receivables), and share price risk (from equity instrument investments)[51](index=51&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk)[55](index=55&type=chunk) - Most of the Group's retained listing proceeds are denominated in HKD, resulting in an unrealized exchange gain of approximately **SGD 0.1 million** in H1 2023 due to the appreciation of HKD against SGD[46](index=46&type=chunk) [Employees and Remuneration Policy](index=16&type=section&id=Employees_and_Remuneration_Policy) As of June 30, 2023, the Group had approximately **630** employees (including foreign workers), an increase from **520** at year-end 2022; total staff costs for H1 2023 were approximately **SGD 6.3 million**, up from **SGD 4.8 million** in the prior period - As of June 30, 2023, the Group's total number of employees was approximately **630**, an increase from **520** as of December 31, 2022[50](index=50&type=chunk) - Total worker and staff costs for H1 2023 were approximately **SGD 6.3 million**, a **31.3%** increase from **SGD 4.8 million** in the prior period[50](index=50&type=chunk) [Compliance with the Corporate Governance Code](index=18&type=section&id=Compliance_with_the_Corporate_Governance_Code) During the reporting period, the Company applied and complied with all applicable provisions of the Corporate Governance Code, with the sole exception of Independent Non-executive Director Mr. Li Yunping's absence from the 2023 Annual General Meeting on June 28 due to personal reasons - The Company has complied with the Corporate Governance Code, except for one Independent Non-executive Director, Mr. Li Yunping, who was unable to attend the 2023 Annual General Meeting due to personal reasons[56](index=56&type=chunk)

Financial Performance - The company recorded a revenue increase of approximately 1.8% year-on-year for the fiscal year 2022, with gross profit rising by 30.9% to approximately SGD 10.1 million[10]. - The group's revenue increased from approximately SGD 21.9 million in FY2021 to approximately SGD 22.3 million in FY2022, representing a growth of about 1.8%[15]. - Revenue from labor dispatch and supporting services rose from approximately SGD 14.3 million to approximately SGD 15.0 million, an increase of about 5.0% due to increased construction activities[16]. - The gross profit increased from approximately SGD 7.7 million in FY2021 to approximately SGD 10.1 million in FY2022, with the gross profit margin rising from about 35.3% to approximately 45.4%[19]. - The group recorded a profit of approximately SGD 0.1 million in FY2022, compared to a loss of SGD 0.5 million in FY2021, primarily due to stricter cost management measures[23]. - Other income decreased from approximately SGD 1.9 million in FY2021 to approximately SGD 1.5 million in FY2022, mainly due to the cessation of government grants related to COVID-19[20]. - The group did not recommend any dividend payment for FY2022, consistent with FY2021[24]. - The company reported no dividends for the fiscal year 2022, consistent with the previous fiscal year[100]. - The company has a cumulative loss of approximately SGD 5.3 million as of December 31, 2022, with total share premium of about SGD 15.0 million[106]. Business Strategy and Expansion - The company plans to expand its existing business into the Asia-Pacific region, including China, and consider providing value-added services such as skills training[11]. - The company aims to enhance its competitiveness by broadening its product line and increasing R&D capabilities in 2023[11]. - The group plans to diversify its business and expand into the Asia-Pacific region, including China, while considering value-added services for labor[19]. - The company will continue to expand its distribution network and develop new products to strengthen its position in the medical industry[11]. - There is a steady growth in demand for medical devices driven by an aging population and rising living standards in China[11]. Human Resources and Employment - The company has approximately 520 employees as of December 31, 2022, down from 551 the previous year[40]. - The total employee costs for the fiscal years 2022 and 2021 were approximately SGD 13.2 million and SGD 13.6 million, respectively[40]. - The company employs a total of 50 local employees and 464 foreign workers as of December 31, 2022[165]. - Employee turnover rates are 20.7% for male employees and 5.9% for female employees, with turnover rates of 14.3% for those under 30 and 22.4% for those 30 and above[173]. - The average training hours completed by workers increased from approximately 4.8 hours in fiscal year 2021 to approximately 9.8 hours in fiscal year 2022, indicating a significant enhancement in training efforts[177]. - The company invested approximately SGD 116,630 in worker training during the fiscal year 2022[176]. - The company has implemented a systematic performance evaluation system to assess employee performance and determine eligibility for promotions and salary adjustments[169]. - The company promotes equal opportunities in hiring and training, actively working to eliminate discrimination in employment practices[164]. - The company organizes multiple team-building activities and company outings to foster a harmonious work environment[171]. Corporate Governance - The company is committed to fulfilling its responsibilities to shareholders and enhancing shareholder value through good corporate governance practices[54]. - The board consists of seven members, including three independent non-executive directors, meeting the requirement of at least one with appropriate professional qualifications in accounting or related financial management[59]. - All independent non-executive directors have confirmed their independence according to the relevant guidelines, ensuring compliance with listing rules[59]. - The company has adopted the corporate governance code as per the listing rules, ensuring adherence to all applicable provisions[55]. - The board is responsible for overseeing the management of the group's business affairs and overall performance, including the development and review of business and investment plans[57]. - The company has purchased liability insurance for directors against legal actions, complying with corporate governance code provisions[60]. - The company encourages all directors to participate in relevant training courses to enhance their understanding of their responsibilities[61]. - The independent non-executive directors contribute extensive business and financial expertise to the board, ensuring effective independent judgment[59]. - The company has established various committees, including audit, remuneration, and nomination committees, to delegate specific responsibilities[57]. Risk Management - The group has established policies and procedures for risk management and internal control, ensuring effective systems are in place to manage risks associated with achieving strategic goals[89]. - The group faces cash flow interest rate risk due to floating interest rates on bank balances and fair value interest rate risk related to fixed-rate finance leases[41]. - The group is exposed to foreign currency risk from bank balances, financial assets, and trade receivables and payables denominated in USD and HKD[42]. - Credit risk has been significantly reduced through established credit limits, approval processes, and regular reviews of trade receivables for impairment[43]. - The group monitors cash and cash equivalents to maintain sufficient levels for operational needs and to mitigate cash flow volatility[44]. - The group faces equity price risk from financial instruments designated at fair value through profit or loss and manages this risk through portfolio diversification[45]. Environmental and Social Responsibility - The group has established an environmental management system to comply with internal policies on water conservation and energy usage[109]. - There were no incidents of non-compliance with environmental laws and regulations during the fiscal year 2022[109]. - The group has continuously invested in systems and human resources to ensure compliance with regulatory requirements[110]. - The company has implemented energy-saving measures, including the use of energy-efficient lighting and air conditioning systems[155]. - The company has established an environmental management system to promote water conservation among employees[157]. - The company has not generated significant industrial wastewater, with wastewater primarily coming from residential discharges[157]. - The group is committed to sustainable development, creating long-term value for shareholders and stakeholders[109]. - The group donated a total of SGD 90,000 to various charities during the year[191]. Audit and Compliance - The group’s financial statements have been audited and reflect a true and fair view of its financial position as of December 31, 2022[193]. - The auditor's report aims to provide reasonable assurance that the consolidated financial statements are free from material misstatement due to fraud or error[199]. - The audit process involved assessing risks of material misstatement and designing audit procedures to address these risks[199]. - The auditor evaluated the appropriateness of accounting policies and the reasonableness of accounting estimates made by the directors[199]. - The auditor concluded on the appropriateness of the going concern basis of accounting and identified any significant uncertainties that may cast doubt on the group's ability to continue as a going concern[199]. - The overall presentation, structure, and content of the consolidated financial statements were assessed to ensure they fairly reflect the relevant transactions and events[199]. - The auditor is responsible for the direction, supervision, and execution of the group audit[200]. - The audit opinion is based on evidence obtained up to the date of the auditor's report, with future events potentially affecting the group's ability to continue as a going concern[199].

Financial Performance - Revenue for the fiscal year ended December 31, 2022, was SGD 22,279,572, an increase of 1.76% from SGD 21,895,836 in the previous year[2] - Gross profit increased to SGD 10,115,878, up 30.8% from SGD 7,726,710 in the previous year[2] - The company reported a net profit of SGD 115,726, a significant recovery from a loss of SGD 497,830 in the previous year[4] - The company reported a pre-tax profit of SGD 3,915,785 for 2022, compared to SGD 2,817,150 in 2021, indicating a significant increase of about 39%[25] - The company’s net profit for 2022 was SGD 3,272,669, compared to SGD 2,382,866 in 2021, showing an increase of approximately 37.3%[25] - Basic and diluted earnings per share for the year were SGD 0.04, compared to a loss per share of SGD 0.02 in the previous year[4] - Basic earnings per share improved to 0.04 Singapore cents in FY2022 from a loss of 0.02 Singapore cents in FY2021, based on a profit attributable to shareholders of approximately SGD 0.47 million[42] Assets and Liabilities - Total assets as of December 31, 2022, amounted to SGD 40,271,827, an increase of 19.5% from SGD 33,769,497 in the previous year[6] - Current assets, including trade receivables, were SGD 33,301,539, compared to SGD 30,708,066 in the previous year, reflecting a growth of 5.2%[5] - Total liabilities increased to SGD 15,679,621, up 60.8% from SGD 9,745,259 in the previous year[6] - The company’s total liabilities increased to SGD 15,679,621 in 2022 from SGD 9,745,259 in 2021, representing a growth of approximately 60.5%[22] - The group’s debt-to-equity ratio as of December 31, 2022, was approximately 18.1%, up from 7.8% as of December 31, 2021[52] Revenue Breakdown - Revenue from labor dispatch and supporting services increased to SGD 15,017,819 in 2022 from SGD 14,306,931 in 2021[17] - Revenue from dormitory services rose to SGD 5,787,235 in 2022, up from SGD 4,789,450 in 2021[17] - Revenue from IT services decreased to SGD 417,150 in 2022 from SGD 567,035 in 2021[17] - Revenue from construction supporting services fell to SGD 401,838 in 2022 from SGD 674,137 in 2021[17] - The company’s revenue from Singapore was SGD 21,624,042 in 2022, up from SGD 20,337,553 in 2021, reflecting an increase of about 6.3%[21] Adjustments and Errors - Adjustments were made to prior year financial statements due to identified significant errors, impacting both the income statement and balance sheet[10] - The adjustments made to the financial statements were primarily related to Goods and Services Tax accounting errors identified during the audit process[10] - The company identified understatements in accounts receivable and payable for goods and services tax amounting to SGD 84,151 and SGD 1,233,429 respectively as of December 31, 2021[15] Operational Plans and Market Conditions - The company plans to continue expanding its service offerings in labor dispatch and IT services, aiming for further market penetration[7] - The company plans to diversify its business and expand into the Asia-Pacific region, including China, to enhance its service offerings[33] - The company aims to strengthen its research and development capabilities and expand its product line in response to increasing demand for medical devices[33] - The construction industry in Singapore is expected to face challenges in 2023, with economic growth projected to slow down to between 0.5% and 2.5%[33] Employee and Administrative Costs - The group generated employee costs of approximately SGD 13.2 million in the fiscal year 2022, slightly down from SGD 13.6 million in the fiscal year 2021[57] - Administrative expenses increased by approximately SGD 1.5 million, primarily due to increased activities in the company's Chinese subsidiary[38] Governance and Compliance - The company has adopted all applicable principles of the Corporate Governance Code as per the Listing Rules Appendix 14[65] - The Audit Committee has reviewed the audited annual performance and confirmed that the consolidated financial statements are prepared in accordance with applicable accounting standards and regulations[66] - The auditor HLB has compared preliminary announcement figures with the audited consolidated financial statements, confirming consistency[67] - The company maintains sufficient public float as required by the Listing Rules[68] - The annual report contains all information required by the Listing Rules and will be sent to shareholders in due course[68]