Financial Performance - The group's revenue for the six months ended June 30, 2024, remained consistent at approximately SGD 5.6 million, with no new projects awarded during the period[8]. - Gross profit increased from approximately SGD 0.2 million for the six months ended June 30, 2023, to approximately SGD 0.7 million for the current period, resulting in a gross margin of 12.5% compared to 3.6% in the previous year[10]. - Other income rose by approximately SGD 0.3 million or 15.8% to about SGD 2.2 million, primarily due to increased interest income from financial assets and management fees from a joint venture[11]. - The net loss for the period decreased by approximately 50.0% from SGD 1.0 million to SGD 0.5 million[14]. - The group reported a significant increase in contract assets, with receivables from the ultimate holding company rising to SGD 1,376,000 from SGD 170,000 in the previous year[51]. - The company reported a loss attributable to owners of SGD (464,000) for the six months ended June 30, 2024, compared to a loss of SGD (1,047,000) in 2023[66]. - Total comprehensive loss for the period was SGD 228,000, compared to SGD 1,191,000 in the previous year, reflecting a decrease of 80.9%[43]. Project and Market Outlook - The group had five ongoing projects with a total contract value of approximately SGD 57.2 million, of which approximately SGD 37.7 million was recognized as revenue by June 30, 2024[4]. - The group is adopting a more cautious approach to new project bidding in light of ongoing economic challenges and market volatility[3]. - The construction market in Singapore is expected to see strong demand, particularly in the public sector, with the private sector remaining stable in the medium term[3]. - The company plans to demolish an existing property and construct a four-story building for warehouse, office, and dormitory use, with construction expected to commence within the year[24]. Expenses and Costs - Administrative expenses increased by approximately SGD 0.5 million or 17.2% to about SGD 3.4 million, mainly due to higher depreciation, professional fees, and employee costs[12]. - Service costs decreased by approximately SGD 0.6 million or 11.1% to about SGD 4.8 million for the current period[9]. - Employee costs totaled approximately SGD 2.9 million for the period, compared to SGD 2.8 million for the same period last year[23]. - The company incurred employee benefits expenses of SGD 1,311,000 for the six months ended June 30, 2024, compared to SGD 1,338,000 in 2023[63]. Cash Flow and Liquidity - As of June 30, 2024, the company had cash and bank balances of approximately SGD 4.8 million, down from SGD 13.7 million as of December 31, 2023[16]. - The total cash and cash equivalents at the end of the period were SGD 1,718,000, a decrease from SGD 13,967,000 at the end of the previous year[53]. - The company reported a cash flow from operating activities of SGD (Singapore Dollar) -2,936,000, compared to -2,326,000 in the same period last year, indicating a decline in cash flow[51]. - The company reported a net cash outflow from investing activities of SGD -4,431,000, compared to -1,055,000 in the previous year, indicating increased investment expenditures[53]. - The company’s cash flow from financing activities showed a net outflow of SGD -298,000, slightly improved from -350,000 in the previous year[53]. Assets and Liabilities - Non-current assets totaled SGD 54,057,000 as of June 30, 2024, an increase from SGD 49,693,000 at the end of 2023[44]. - Current assets decreased to SGD 10,172,000 from SGD 20,408,000 at the end of 2023, indicating a decline of 50.2%[44]. - Total liabilities decreased to SGD 15,289,000 from SGD 20,933,000, representing a reduction of 27.1%[44]. - The company’s total liabilities decreased to SGD 6,477,000 as of June 30, 2024, from SGD 8,464,000 as of December 31, 2023[75]. - Trade payables decreased significantly to SGD 1,044,000 as of June 30, 2024, from SGD 4,166,000 as of December 31, 2023[74]. Shareholder Information and Corporate Governance - Mr. Zheng Yonghua holds 20,000,000 personal shares and 552,336,000 corporate shares, totaling 552,336,000 shares, representing 60.33% of the voting shares[28]. - Mr. Zhang Ruiqing holds 532,336,000 corporate shares, representing 58.14% of the voting shares[28]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests[38]. - The board confirmed compliance with the adopted trading code for directors during the period[39]. - The company maintained a public float of at least 25% of its issued shares, in compliance with listing rules[43]. Compliance and Risk Management - The company continues to monitor foreign exchange risks and may consider hedging significant currency risks as needed[18]. - The company adopted all new and revised International Financial Reporting Standards (IFRS) effective during the fiscal period, with no significant impact on financial performance or position[56]. - The company expects no significant impact from new standards and interpretations that are not yet effective as of June 30, 2024[56]. - The company has no significant contingent liabilities or capital commitments as of June 30, 2024[20].

Financial Performance - Revenue for the six months ended June 30, 2024, was approximately SGD 5.6 million, consistent with the same period in 2023[1] - Gross profit increased by approximately 250.0% from SGD 0.2 million in the six months ended June 30, 2023, to SGD 0.7 million in the same period in 2024[1] - Loss for the six months ended June 30, 2024, decreased by approximately 50.0% to SGD 0.5 million from SGD 1.0 million in the prior year[1] - Total comprehensive loss for the period was SGD 228,000, a significant improvement from SGD 1.191 million in the previous year[3] - The company reported a basic and diluted loss per share of SGD 0.05 for the period, improved from SGD 0.11 in the previous year[3] - The company reported a pre-tax loss of SGD 464,000 for the six months ended June 30, 2024, compared to a loss of SGD 1,047,000 for the same period in 2023, indicating an improvement in financial performance[16] - Basic loss per share for the six months ended June 30, 2024, was SGD 0.05, compared to SGD 0.11 for the same period in 2023, showing a reduction in loss per share[16] Revenue and Income - Other income increased to SGD 2.218 million from SGD 1.933 million year-on-year, reflecting a positive trend in revenue generation[2] - Other income for the six months ended June 30, 2024, totaled SGD 2,218,000, an increase from SGD 1,933,000 in 2023, reflecting a growth of approximately 14.8%[12] - Major customers contributing over 10% of total revenue included Customer A with SGD 2,468,000 (2024) down from SGD 3,475,000 (2023), and Customer B with SGD 1,534,000 (2024) up from SGD 1,362,000 (2023)[9] Assets and Liabilities - Non-current assets increased to SGD 54.057 million as of June 30, 2024, compared to SGD 49.693 million at the end of 2023[4] - Current liabilities decreased significantly from SGD 15.157 million to SGD 9.608 million over the same period[5] - The company's net assets stood at SGD 48.940 million as of June 30, 2024, slightly down from SGD 49.168 million at the end of 2023[5] - Trade receivables from third parties increased to SGD 1,036,000 as of June 30, 2024, compared to SGD 944,000 as of December 31, 2023, representing a growth of approximately 9.7%[18] - Trade payables decreased significantly to SGD 1,044,000 as of June 30, 2024, down from SGD 4,166,000 as of December 31, 2023, indicating a reduction of approximately 75%[22] - Trade and other payables totaled SGD 1,396,000 as of June 30, 2024, compared to SGD 4,710,000 as of December 31, 2023, reflecting a decrease of about 70.4%[22] - Other receivables and deposits amounted to SGD 320,000 as of June 30, 2024, down from SGD 454,000 as of December 31, 2023, a decline of approximately 29.5%[20] Expenses - Employee benefits expenses amounted to SGD 1,311,000 for the six months ended June 30, 2024, slightly down from SGD 1,338,000 in 2023[11] - Service costs decreased by approximately SGD 0.6 million or 11.1% to about SGD 4.8 million for the six months ended June 30, 2024[30] - Administrative expenses increased by approximately SGD 0.5 million or 17.2% to about SGD 3.4 million, mainly due to higher depreciation and professional fees[33] - Employee costs totaled approximately SGD 2.9 million for the period ending June 30, 2024, compared to SGD 2.8 million for the same period in 2023, with a total of 141 employees as of June 30, 2024[40] Investments and Projects - The company acquired a 49% stake in D.D. Resident Co., Ltd for HKD 58 million (approximately SGD 10.07 million), with the investment's fair value as of June 30, 2024, estimated at SGD 4.22 million, representing about 6.6% of total assets[39] - The group had five ongoing projects with a total contract value of approximately SGD 57.2 million, of which about SGD 37.7 million was recognized as revenue by June 30, 2024[28] - The company plans to demolish a newly acquired property and construct a four-story building for warehouse, office, dormitory, and ancillary facilities, with construction expected to commence within the year[41] Corporate Governance and Compliance - The company did not declare any interim dividend for the six months ended June 30, 2024, consistent with the previous year[1] - The company has no provisions for expected credit losses on trade receivables as of June 30, 2024, consistent with the assessment made on December 31, 2023[19] - The company maintains a public float of at least 25% of its issued shares, in compliance with listing rules[48] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated results for the period and confirmed compliance with applicable accounting standards and regulations[47] - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[45] Financial Ratios and Performance Metrics - The group maintained a current ratio of approximately 1.1 times and a debt-to-equity ratio of about 11.3% as of June 30, 2024[34] - The aging analysis of trade receivables shows that amounts overdue by 1 to 30 days decreased from SGD 828,000 to SGD 714,000, a decline of about 13.8%[18] - The company did not anticipate any significant impact on its financial statements from the adoption of new or revised International Financial Reporting Standards during the reporting period[8] - There were no significant changes in valuation techniques or assumptions during the reporting period, maintaining consistency in financial reporting[21] - The group has no significant contingent liabilities or capital commitments as of June 30, 2024[38] Future Outlook - The group plans to adopt new construction technologies to enhance productivity and maintain a competitive edge in project bidding and delivery[27] - The fair value of the investment in D.D. Resident Co., Ltd increased from 6.0% of total assets as of December 31, 2023, to 6.6% as of June 30, 2024[39] - The company has no other significant investment or capital asset plans as of June 30, 2024[41] - There were no significant transactions or arrangements involving directors that could pose a conflict of interest during the period[44] - The company has not repurchased any shares during the period and has not engaged in any purchase or sale of its own shares[43]

Financial Performance - The group's revenue increased by approximately 37.2% to about SGD 18.8 million for the fiscal year ending December 31, 2023, compared to SGD 13.7 million in the previous year[13]. - Gross profit rose by approximately 47.6% to about SGD 3.1 million, with a gross margin of 16.5%, up from 15.3% in the previous year[16]. - The net loss for the previous fiscal year was eliminated, resulting in a net profit for the fiscal year ending December 31, 2023[16]. - Revenue increased from approximately SGD 13.7 million in FY2022 to approximately SGD 18.8 million in FY2023, representing a growth of 37.2%[18]. - Other income grew from approximately SGD 2.8 million in FY2022 to approximately SGD 4.4 million in FY2023, primarily due to increases in bank interest income and rental income[22]. - The group reported a loss of approximately SGD 7,000 in FY2023, a decrease of 99.2% from a loss of approximately SGD 0.9 million in FY2022[26]. Project and Contract Management - The group has five ongoing projects with a total contract value of approximately SGD 56.8 million, of which about SGD 31.9 million has been recognized as revenue as of December 31, 2023[15]. - The company typically retains 5% of the contract value as retention money, which may affect cash flow if clients delay payments or do not release retention money on time[95]. - The company faces significant risks due to the non-recurring nature of its projects, which may impact financial performance if new contracts are not secured after current projects are completed[92]. Cost and Expense Management - Service costs rose from approximately SGD 11.6 million in FY2022 to approximately SGD 15.8 million in FY2023, an increase of 36.2%[20]. - Administrative expenses increased from approximately SGD 5.2 million in FY2022 to approximately SGD 6.9 million in FY2023, a rise of 32.7%[23]. - Financing costs increased from approximately SGD 0.1 million in FY2022 to approximately SGD 0.3 million in FY2023, a significant increase of 200.0%[24]. - The group will continue to implement strict cost control measures and monitor the macroeconomic environment to address potential challenges[12]. Workforce and Human Resources - As of December 31, 2023, the group had a total of 145 employees, with total employee costs amounting to approximately SGD 6.4 million, an increase from SGD 6.1 million in the previous fiscal year[39]. - The company regularly assesses its human resources to ensure sufficient labor is available to meet project demands[96]. - A majority of the company's workforce consists of foreign employees, and any inability to hire or retain them could adversely affect operations and financial performance[95]. Market Outlook - The Singapore construction industry is projected to grow by 5.2% in 2024, driven by both public and private sector projects[12]. - The group anticipates strong construction demand in the public sector, with stable private sector project demand in the medium term[9]. Corporate Governance - The company has fully complied with all applicable principles and code provisions of the Corporate Governance Code for the year ended December 31, 2023[130]. - The board is responsible for leading and controlling the company, with management delegated to oversee daily operations[134]. - The company aims to foster a corporate culture based on honesty, transparency, and responsibility, contributing to sustainable long-term performance[131]. - The board currently consists of five directors, with a mix of ages and nationalities, ensuring diverse perspectives[173]. Risk Management - The company has established a framework for risk management and internal controls, which is regularly reviewed by the board[141]. - The audit committee has reviewed the audit qualifications and agrees with management's view that the classification of the investment is appropriate[186]. - Crowe Horwath's review of the group's risk management and internal control systems found no significant deficiencies, and management has committed to addressing identified issues[189]. Community Engagement - The group reported charitable donations of SGD 60,940 for the fiscal year ending December 31, 2023, compared to SGD 11,160 in 2022, indicating a significant increase in community support[77]. Future Plans - The group plans to enhance its workforce and adopt new construction technologies to improve productivity and maintain competitive advantages in bidding for new projects[12]. - The group plans to demolish an entire property and construct a four-story building for warehouse, office, dormitory, and ancillary facilities, with construction expected to commence in the next fiscal year[40]. Shareholder Information - The board has resolved not to recommend any final dividend for the fiscal year ending December 31, 2023, consistent with the previous year where no dividend was declared[75]. - As of December 31, 2023, Mr. Zheng Yonghua holds 60.05% of the company's shares, while Mr. Zhang Ruiqing holds 57.86%[104].

Financial Performance - Revenue increased by approximately 37.2% from about SGD 13.7 million in 2022 to approximately SGD 18.8 million in 2023[3] - Gross profit rose by approximately 47.6% from about SGD 2.1 million in 2022 to approximately SGD 3.1 million in 2023[4] - Loss for the year decreased by approximately 99.2% from about SGD 0.9 million in 2022 to approximately SGD 7,000 in 2023[5] - Total comprehensive income for the year amounted to SGD 869,000 compared to a loss of SGD 554,000 in 2022[10] - Revenue from construction contracts for the fiscal year 2023 was SGD 18,809,000, an increase of 37.5% from SGD 13,693,000 in 2022[23] - Total other income for 2023 was SGD 4,449,000, a 60.4% increase compared to SGD 2,773,000 in 2022[27] - The group reported a pre-tax loss of SGD 22,000 for 2023, a significant improvement compared to a pre-tax loss of SGD 911,000 in 2022[34] - The company reported a pre-tax loss of SGD 6,000 in 2023, a significant improvement from a loss of SGD 911,000 in 2022, resulting in a basic loss per share of SGD 0.00 compared to SGD 0.10 in the previous year[39] - The company reported a loss of approximately SGD 7,000 for the fiscal year ending December 31, 2023, a significant decrease of about 99.2% from a loss of approximately SGD 0.9 million in the previous year[73] Assets and Liabilities - Non-current assets increased from SGD 38.8 million in 2022 to SGD 49.7 million in 2023[12] - Current assets decreased from SGD 30.7 million in 2022 to SGD 20.4 million in 2023[12] - Total liabilities decreased from SGD 21.1 million in 2022 to SGD 20.9 million in 2023[14] - Net assets increased from SGD 48.3 million in 2022 to SGD 49.2 million in 2023[14] - Trade receivables from third parties increased to SGD 944,000 in 2023, up from SGD 562,000 in 2022, with the aging analysis showing a notable rise in receivables over 90 days to SGD 112,000 from SGD 24,000[41] - Trade payables surged to SGD 4,166,000 in 2023, compared to SGD 1,776,000 in 2022, indicating a significant increase in outstanding amounts owed to suppliers and subcontractors[50] - The company’s total other payables decreased slightly to SGD 8,464,000 in 2023 from SGD 10,366,000 in 2022, primarily due to currency exchange differences[50] - The company’s debt stood at approximately SGD 5.7 million, a decrease from SGD 6.1 million in the previous year, with a current ratio of approximately 1.3 times[75] Operational Highlights - The company continues to focus on the design, construction, and installation of electromechanical systems[17] - Major customer A contributed SGD 12,728,000 to total revenue in 2023, up from SGD 4,891,000 in 2022, representing a significant increase of 160.5%[23] - As of December 31, 2023, the company has five ongoing projects (excluding joint venture projects) with a total contract value of approximately SGD 56.8 million, of which about SGD 31.9 million has been recognized as revenue[62] - The company plans to adopt new construction technologies to enhance productivity and maintain a competitive edge in bidding for new projects[59] - The company is taking a more cautious approach to bidding for new projects due to intense price competition in the market[59] - The group operates primarily in Singapore, with all revenue generated from this region[26] Expenses and Costs - Service costs rose from approximately SGD 11.6 million to approximately SGD 15.8 million, an increase of about 36.2%, driven by increased construction activities[66] - Administrative expenses increased from approximately SGD 5.2 million to approximately SGD 6.9 million, a rise of about 32.7%, mainly due to higher depreciation and professional fees[69] - The company's financing costs increased from approximately SGD 0.1 million to approximately SGD 0.3 million, a rise of 200%, attributed to interest expenses on bank loans for leased properties[70] - The company incurred contractor costs of SGD 2,814,000 in 2023, a substantial increase from SGD 819,000 in 2022, indicating higher operational costs[36] - Depreciation of property, plant, and equipment rose sharply to SGD 1,026,000 in 2023 from SGD 487,000 in 2022, reflecting increased capital expenditures[36] Legal and Compliance - The company has ongoing legal disputes related to its investment in D. D. Resident Co., Ltd., with claims totaling SGD 2.55 million[56] - Ongoing legal proceedings related to the seller and the investee are not expected to have a significant adverse impact on the group's overall business or operations[106] - The audit report expressed a qualified opinion due to insufficient audit evidence regarding the classification of the 49% investment[104] - The audit committee shares the same view as the auditors regarding the qualified opinion and will maintain communication with the board[108] - The removal of the qualified opinion is contingent upon resolving existing issues with the investee's seller[109] Future Outlook - The construction market in Singapore is expected to face higher construction costs, with material and labor costs rising by 30% to 40% compared to pre-pandemic levels[58] - The Ministry of Trade and Industry of Singapore announced a GDP growth of 1.1% for 2023, with construction output expected to grow from 4.6% in 2022 to 5.2% in 2024[59] - The company will continue to monitor the macroeconomic environment and implement contingency plans to ensure project progress and strict cost control[59] Shareholder and Governance - The board does not recommend the payment of a final dividend for the year ended December 31, 2023[6] - The company received confirmation from its controlling shareholder regarding compliance with non-competition commitments for the fiscal year ending December 31, 2023[88] - The audit committee, consisting of three independent non-executive directors, is responsible for reviewing and supervising the company's financial reporting, risk management, and internal control procedures[98] - The audited consolidated financial results for the fiscal year ending December 31, 2023, have been reviewed by the audit committee and confirmed to be consistent with the amounts reported by the company's auditor, Baker Tilly TFW LLP[100] Investments - The fair value of investments as of December 31, 2023, was determined to be SGD 5.765 million, reflecting a change of SGD 14,000 in fair value compared to SGD 89,000 in the previous year[56] - The fair value of the company's investment in D.D. Resident Co., Ltd. was approximately SGD 4.2 million as of December 31, 2023, representing about 6.0% of the total assets[83] - As of December 31, 2023, the fair value of the investment was SGD 4.22 million, with a recognized fair value loss of SGD 14,000[102]

Financial Performance - For the six months ended June 30, 2023, the company's revenue decreased by approximately 17.6% to about SGD 5.6 million, down from SGD 6.8 million in the same period last year[10]. - Gross profit fell by approximately 80.0% to about SGD 0.2 million, compared to SGD 1.0 million for the six months ended June 30, 2022[10]. - The gross profit margin decreased from approximately 14.7% to about 4.1%, primarily due to lower profit margins on ongoing projects compared to the previous year[14]. - The company recorded a net loss of SGD 1.0 million for the period, a 100.0% increase from a net loss of SGD 0.5 million in the prior year[10]. - For the six months ended June 30, 2023, the company reported total revenue of SGD 5,619,000, a decrease of 17.5% compared to SGD 6,808,000 for the same period in 2022[64]. - The gross profit for the same period was SGD 230,000, down 77.0% from SGD 1,001,000 in the previous year[64]. - The company incurred a loss before tax of SGD 1,047,000, compared to a loss of SGD 499,000 in the prior year, representing a 109.8% increase in losses[64]. - Total comprehensive loss for the period was SGD 1,191,000, an increase of 44.3% from SGD 825,000 in the previous year[64]. - The company reported a basic and diluted loss per share of SGD 0.11 for the current period, compared to SGD 0.05 in the previous year[64]. - The company reported a pre-tax loss of SGD 1,047,000 for the six months ended June 30, 2023, compared to a loss of SGD 499,000 in the same period of 2022, indicating a deterioration in performance[96]. - Basic loss per share for the six months ended June 30, 2023, was SGD (0.11), compared to SGD (0.05) for the same period in 2022, reflecting an increase in losses per share[96]. Cash Flow and Financial Position - As of June 30, 2023, the group had cash and bank balances of approximately SGD 20.1 million, down from SGD 24.0 million as of December 31, 2022[20]. - The company's cash flow from operations showed a net cash position of SGD 13,967,000 as of June 30, 2023, down from SGD 17,698,000 as of December 31, 2022[107]. - For the six months ended June 30, 2023, the cash flow from operating activities was a net outflow of SGD 2,326,000, compared to a net outflow of SGD 539,000 for the same period in 2022[68]. - The cash flow used in investing activities was SGD 1,055,000 for the six months ended June 30, 2023, compared to a net cash inflow of SGD 4,165,000 in 2022[71]. - The net cash used in financing activities was SGD 350,000 for the six months ended June 30, 2023, compared to SGD 65,000 in 2022[71]. - Cash and cash equivalents decreased to SGD 20,077,000 from SGD 24,036,000, indicating a decline of 16.5%[65]. - The company had a significant increase in contract liabilities, with a net outflow of SGD 1,282,000 compared to an inflow of SGD 1,325,000 in the previous year[68]. Projects and Market Outlook - As of June 30, 2023, the company had five ongoing projects with a total contract value of approximately SGD 55.7 million, of which about SGD 18.7 million has been recognized as revenue[8]. - The company is adopting a more cautious approach to bidding for new projects due to market volatility and rising construction costs, which have increased by 30% to 40% compared to pre-pandemic levels[6]. - The construction market in Singapore is expected to see strong demand, particularly in the public sector, while the private sector is anticipated to remain stable in the medium term[6]. - The company plans to continue investing in enhancing its workforce and adopting new construction technologies to improve productivity and maintain its competitive edge in project bidding and delivery[7]. Corporate Governance - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and risk management[58]. - The audit committee reviewed the unaudited consolidated results for the period and confirmed compliance with applicable accounting standards and regulations[60]. - The company maintains high standards of corporate governance to protect shareholder interests and enhance corporate value[55]. - No conflicts of interest were reported among directors, major shareholders, or management during the period[54]. - The company has adopted a code of conduct for directors' securities transactions, ensuring compliance with relevant regulations[57]. - The company has not identified any other individuals with disclosed interests in the company's shares outside of the mentioned directors and major shareholders[53]. Shareholder Information - As of June 30, 2023, Mr. Zheng Yonghua holds a total of 549,792,000 shares, representing approximately 60.05% of the company's issued voting shares[44]. - Mr. Zhang Ruiqing owns 529,792,000 shares, accounting for about 57.86% of the company's issued voting shares[45]. - Mr. Zheng Mingqiang holds 67,073,714 shares, which is approximately 7.33% of the company's issued voting shares[48]. - Mr. Zheng Yonghua is deemed to have an interest in 529,792,000 shares held by HMK Investment Holdings Limited due to his 90% ownership[44]. Expenses and Liabilities - Administrative expenses rose by approximately 26.1% to about SGD 2.9 million, mainly due to depreciation of right-of-use assets, professional fees, and increased employee costs[16]. - The total employee cost for the period was approximately SGD 2.8 million, compared to SGD 2.7 million for the same period last year[30]. - Employee benefits expenses totaled SGD 1,338,000 for the six months ended June 30, 2023, compared to SGD 1,260,000 for the same period in 2022, reflecting an increase of 6%[91]. - The company’s management compensation for the six months ended June 30, 2023, was SGD 511,000, a decrease from SGD 600,000 in the same period of 2022[119]. - Trade payables increased to SGD 2,054,000 as of June 30, 2023, up 15.6% from SGD 1,776,000 as of December 31, 2022[109]. - Other payables and accrued expenses totaled SGD 10,076,000 as of June 30, 2023, a decrease of 6.9% from SGD 10,831,000 as of December 31, 2022[112]. - The company’s accrued operating expenses were SGD 779,000 as of June 30, 2023, a significant decrease from SGD 1,339,000 as of December 31, 2022[112]. Other Income and Expenses - Other income increased by approximately 375.0% to about SGD 1.9 million, primarily due to increased bank interest income, rental income, and management fees from joint ventures[15]. - Interest income from bank deposits increased to SGD 343,000 in the first half of 2023, up from SGD 206,000 in the same period of 2022, marking a growth of 66%[86]. - Rental income rose to SGD 533,000 in the first half of 2023, compared to SGD 75,000 in the same period of 2022, representing a substantial increase of 611%[86]. - The company incurred financing costs of SGD 117,000 for the six months ended June 30, 2023, compared to SGD 4,000 in the same period of 2022, indicating a significant rise in financing expenses[90]. - The company reported a net loss from the sale of financial assets measured at fair value through other comprehensive income of SGD 32,000 for the first half of 2023, down from a gain of SGD 41,000 in the same period of 2022[88]. - The company reported a loss from the sale of intangible assets amounting to SGD 49,000 for the six months ended June 30, 2023[68].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴該等內容 而引致的任何損失承擔任何責任。 SOLIS HOLDINGS LIMITED （於開曼群島註冊成立的有限公司） （股份代號：2227） 截至二零二三年六月三十日止六個月之中期業績 財務摘要 收益由截至二零二二年六月三十日止六個月約6.8百萬新加坡元減少約17.6%至截至二零二三年六 月三十日止六個月約5.6百萬新加坡元。 毛利由截至二零二二年六月三十日止六個月約1.0百萬新加坡元減少約80%至截至二零二三年六月 三十日止六個月約0.2百萬新加坡元。 截至二零二三年六月三十日止六個月之虧損由截至二零二二年六月三十日止六個月約0.5百萬新加 坡元增加約100.0%至約1.0百萬新加坡元。 ...

Financial Performance - The group's revenue for the year ended December 31, 2022, decreased by approximately 6.2% to about SGD 13.7 million, down from approximately SGD 14.6 million in the previous fiscal year[12]. - Gross profit fell from approximately SGD 3.0 million for the year ended December 31, 2021, to approximately SGD 2.1 million for the year ended December 31, 2022, a decrease of about SGD 0.9 million[12]. - Revenue decreased by approximately SGD 0.9 million or 6.2% to SGD 13.7 million for the year ended December 31, 2022, compared to SGD 14.6 million for the previous year[20]. - Gross profit decreased from SGD 3.0 million to SGD 2.1 million, with a gross margin decline from 20.5% to 15.3% due to lower profit margins on ongoing projects[22]. - The group reported a net loss of approximately SGD 0.9 million, a decrease of 77.5% from SGD 4.0 million in the previous year[27]. - Other income increased to approximately SGD 2.8 million from SGD 0.9 million, primarily due to increased bank interest income and rental income[23]. - Administrative expenses rose by approximately SGD 0.9 million or 20.9% to SGD 5.2 million, mainly due to increased depreciation, professional fees, and employee costs[24]. Project and Contract Management - The company completed two projects during the year, with a total contract value of approximately SGD 7.2 million[14]. - The group has five ongoing projects with a total contract value of approximately SGD 55.7 million, of which SGD 12.7 million has been recognized as revenue as of December 31, 2022[15]. - A new project was acquired with a total contract value of approximately SGD 139.0 million, established through a joint venture with a 70:30 agreement with an independent third party[16]. - The company is adopting a more cautious approach to new project bidding due to lower gross margins and intense competition from other contractors[11]. - The company has established good relationships with subcontractors for HVAC and fire protection system design and installation, ensuring project timelines are met[70]. Economic and Industry Context - The macroeconomic environment remains challenging, with high inflation and rising interest rates expected to increase future operating costs[11]. - The construction industry in Singapore saw a year-on-year growth of 10.0% in output, driven by increased public and private sector construction activities[11]. - The Singapore economy grew by 3.6% in 2022, with a forecasted GDP growth of 0.5% to 2.5% for 2023[11]. - The construction sector is still affected by labor shortages, which have not yet returned to pre-pandemic levels[8]. Financial Position and Liquidity - As of December 31, 2022, the group had cash and bank balances of approximately SGD 24.0 million, up from SGD 14.0 million in the previous year[30]. - The group’s debt stood at approximately SGD 6.1 million, which includes bank loans and lease liabilities[30]. - The company will continue to implement prudent asset-liability management and control operating expenses to ensure sufficient liquidity[8]. - The company has no distributable reserves as of December 31, 2022, due to cumulative losses, but can distribute share premium provided it can meet its debts[75]. Corporate Governance and Compliance - The board has presented the annual report along with the audited consolidated financial statements for the year[63]. - The company has maintained high standards of corporate governance, fully complying with applicable principles and code provisions during the year[130]. - The board has established a remuneration committee to determine the compensation structure for directors and senior management based on performance and market practices[99]. - The company has established a disclosure policy to ensure timely handling of confidential information and compliance with securities regulations[192]. - The company has established four board committees: Audit Committee, Remuneration Committee, Nomination Committee, and Corporate Governance Committee, each with clear written terms of reference[148]. Risk Management - The group faces significant risks due to the non-recurring nature of its projects, which may impact financial performance if new contracts are not secured[94]. - The company relies heavily on foreign workers, and any shortage or inability to retain them could adversely affect operations and financial performance[97]. - The company has established policies to mitigate credit risk, including credit limit assessments and monitoring procedures to recover overdue receivables[97]. Employee and Stakeholder Relations - Total employee costs for the year ended December 31, 2022, amounted to approximately SGD 6.1 million, an increase from SGD 5.6 million in the previous year[40]. - The group had a total of 144 employees as of December 31, 2022, compared to 142 employees in the previous year[40]. - Employee safety and health are prioritized, with the implementation of a set of occupational health and safety procedures, which has improved working conditions[72]. - The company has established strong relationships with key stakeholders, including customers, suppliers, employees, and shareholders[68]. Shareholder Information - The company aims to maximize returns for shareholders by focusing on sustainable profit growth and considering financial stability before declaring dividends[73]. - No final dividend has been recommended for the year, consistent with the previous year[76]. - The largest customer accounted for approximately 35.7% of total revenue, while the top five customers contributed about 98.8% of total revenue[119]. - The company has maintained a public float of at least 25% of the total issued shares as required by listing rules[122]. Audit and Internal Controls - The independent auditor's report includes a qualified opinion due to the inability to obtain satisfactory audit evidence from an investee[180]. - Management has suspended payments of HKD 12.6 million (approximately SGD 2.2 million) to the investee due to non-cooperation in providing financial data[181]. - The audit committee has reviewed the internal control system and found no significant deficiencies, confirming its effectiveness[188]. - The company has engaged an independent internal audit consultant to assess its overall internal controls, with no major deficiencies reported[191].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴該等內容 而引致的任何損失承擔任何責任。 SOLIS HOLDINGS LIMITED （於開曼群島註冊成立的有限公司） （股份代號：2227） 截至二零二二年十二月三十一日止年度之全年業績 財務摘要 收益由二零二一年約14.6百萬新加坡元減少約6.2%至二零二二年約13.7百萬新加坡元。 毛利由二零二一年約3.0百萬新加坡元減少約30.0%至二零二二年約2.1百萬新加坡元。 年內虧損由二零二一年約4.0百萬新加坡元減少約77.5%至約0.9百萬新加坡元。 董事會不建議派付截至二零二二年十二月三十一日止年度之末期股息（二零二一年：無）。 全年業績 ...

Financial Performance - For the six months ended June 30, 2022, the company's revenue increased by 4.6% to approximately SGD 6.8 million, compared to SGD 6.5 million in the same period last year[36]. - Gross profit decreased by approximately SGD 0.3 million to about SGD 1.0 million, resulting in a gross margin of 14.7%, down from 19.3% in the previous year[40]. - The company reported a net loss of SGD 0.5 million, compared to a net loss of SGD 0.3 million in the same period last year, representing a 66.7% increase in losses[40]. - The company incurred a loss before tax of SGD 499 thousand for the six months ended June 30, 2022, compared to a loss of SGD 264 thousand in the previous year, reflecting an increase in losses of approximately 89.0%[101]. - Total comprehensive loss for the period was SGD 825 thousand, compared to SGD 261 thousand in the same period last year, marking an increase of about 215.3%[101]. - The group recorded a pre-tax loss of SGD 499,000 for the six months ended June 30, 2022, compared to a loss of SGD 264,000 in 2021, reflecting a deterioration in performance[144]. - Basic loss per share for the six months ended June 30, 2022, was SGD (0.05), compared to SGD (0.03) for the same period in 2021[144]. Revenue Sources - The contribution from private sector projects was SGD 3.2 million, accounting for 47.1% of total revenue, while public sector projects contributed SGD 3.6 million, accounting for 52.9%[43]. - Major customers contributing over 10% of total revenue included Customer A with SGD 2,780,000, Customer B with SGD 1,711,000, and Customer C with SGD 1,325,000[131]. - The total transaction price allocated to remaining performance obligations as of June 30, 2022, was SGD 188,514,000, significantly up from SGD 62,202,000 in 2021, indicating a growth of approximately 202.5%[132]. Project and Contract Information - As of June 30, 2022, the company had eight ongoing projects with a total contract value of approximately SGD 201.4 million, of which SGD 12.9 million has been recognized as revenue[37]. - During the period, the company secured a new project with a total contract value of approximately SGD 139.0 million[38]. Cost and Expenses - The service costs increased by approximately 9.4% to about SGD 5.8 million, consistent with the increase in revenue[44]. - Administrative expenses increased by approximately SGD 0.3 million or 15.0% to about SGD 2.3 million, primarily due to higher employee costs compared to the same period last year[49]. - Other income decreased by approximately SGD 0.1 million or 20.0% to about SGD 0.4 million due to reduced government subsidies related to COVID-19[47]. Cash Flow and Assets - As of June 30, 2022, the group had cash and bank balances of approximately SGD 17.5 million, up from about SGD 14.0 million as of December 31, 2021[53]. - The company reported a cash flow from operating activities of SGD (499) thousand, compared to SGD (264) thousand for the same period in 2021, indicating a decline in operational cash flow[117]. - The net cash generated from investing activities was SGD 4,165 thousand, significantly higher than SGD 9 thousand in the prior year, primarily due to proceeds from the sale of property, plant, and equipment amounting to SGD 9,454 thousand[120]. - Current assets amounted to SGD 23,997 thousand as of June 30, 2022, compared to SGD 18,789 thousand at the end of 2021, representing an increase of about 27.5%[104]. - The company's total assets were valued at SGD 56,636 thousand as of June 30, 2022, slightly up from SGD 56,499 thousand at the end of 2021[104]. Shareholder Information - As of June 30, 2022, major shareholders include HMK holding 529,792,000 shares, representing approximately 57.86% of the company's issued voting shares[82]. - Zheng Yonghua holds 90% of HMK, thus is deemed to have an interest in the 529,792,000 shares held by HMK[85]. - The company did not repurchase any shares during the reporting period[76]. Corporate Governance - The board of directors and management are committed to maintaining high standards of corporate governance to protect shareholder interests[90]. - The company has adopted a code of conduct for securities trading that is not less stringent than the listing rules[92]. - The company has complied with all applicable principles and provisions of the corporate governance code during the reporting period[91]. Challenges and Market Conditions - The ongoing challenges include supply chain disruptions, labor and material shortages, which are expected to impact bidding prices and profit margins[35]. - The company adopted a more cautious approach to bidding for new projects due to market volatility and cost pressures[36]. Employee Costs - Employee costs totaled approximately SGD 2.7 million for the period, consistent with the same period last year[63]. - Total compensation for key management personnel in 2022 was SGD 600,000, a slight increase from SGD 597,000 in 2021, reflecting a growth of approximately 0.5%[176]. - Salary, allowances, and benefits for key management personnel amounted to SGD 579,000 in 2022, compared to SGD 577,000 in 2021, indicating a marginal increase of about 0.3%[176].

Financial Performance - The group reported a revenue growth of 7.6% in 2021, rebounding from a contraction of 4.1% in 2020, with the construction sector growing by 20.1% compared to a 38.4% decline in 2020[35]. - The group's revenue for the year ended December 31, 2021, increased by approximately SGD 7.2 million, or 102.8%, to approximately SGD 14.6 million compared to the previous fiscal year[36]. - Gross profit rose from a gross loss of approximately SGD 34,000 for the year ended December 31, 2020, to a gross profit of approximately SGD 3.0 million for the year ended December 31, 2021[47]. - The gross profit margin improved to approximately 20.7% for the year ended December 31, 2021, compared to a gross loss margin of approximately 0.5% for the previous year[47]. - The net loss for the year ended December 31, 2021, increased by approximately 29.0% to approximately SGD 4.0 million from approximately SGD 3.1 million for the year ended December 31, 2020[51]. - Other income decreased from approximately SGD 1.9 million for the year ended December 31, 2020, to approximately SGD 0.9 million for the year ended December 31, 2021[48]. - The distributable reserves for the company as of December 31, 2021, were approximately SGD 23,270,000, a decrease from SGD 29,344,000 in 2020[118]. Operational Challenges - Labor shortages due to cross-border restrictions have led to increased labor costs, impacting overall productivity and operational costs[34]. - The construction industry in Singapore is expected to remain below pre-pandemic levels throughout 2022, indicating ongoing challenges in the market[35]. - New project bidding prices remain competitive, but profit margins are expected to decline significantly due to rising construction costs and labor shortages[35]. - The implementation of COVID-19 safety measures has led to decreased productivity and increased costs across the industry[34]. - The group is preparing for another challenging year in 2022, anticipating impacts from rising operational costs and labor shortages[29]. Strategic Initiatives - The group is focusing on enhancing its digital capabilities to drive productivity growth, particularly in response to labor shortages in the construction industry[35]. - The company is leveraging various government grants to enhance its digital delivery initiatives[35]. - The group is actively seeking construction projects and investment opportunities while monitoring market conditions closely[30]. - The company is investing $10 million in research and development to advance its technology capabilities[88]. - A new partnership with a leading logistics provider is expected to streamline operations and improve delivery times[88]. Shareholder and Governance - The company focuses on maximizing returns for shareholders while considering business development needs and financial stability before declaring dividends[116]. - The board has resolved not to recommend any final dividend for the current year, consistent with the previous year[119]. - The company has established a compensation committee to determine the remuneration policy based on operational performance and market practices[153]. - The company’s board of directors is required to obtain shareholder approval for their remuneration at the annual general meeting[154]. - The board consists of six members, including two executive directors and three independent non-executive directors[191]. Market Position and Customer Base - Revenue from the group's top five customers accounted for approximately 88.0% of total revenue in the current year, down from 98.0% in the previous year[112]. - The largest customer represented about 48.8% of total revenue, an increase from 35.7% in 2020[178]. - The company aims to consolidate and expand its market share in the electromechanical industry in Singapore[143]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years[88]. Risk Management - The company faces risks related to the non-recurring nature of its projects, which may impact financial performance if new contracts are not secured[142]. - The company has implemented policies to mitigate credit risk, including credit limit assessments and monitoring procedures for overdue receivables[146]. - The company may experience cash flow issues due to potential delays in trade receivables and retention payments from clients[146]. - The company heavily relies on foreign workers, with a significant impact on operations and financial performance due to shortages and increased costs associated with local labor[147]. Human Resources - The total employee cost for the year ended December 31, 2021, was approximately SGD 5.6 million, slightly up from SGD 5.5 million in 2020, with a total of 142 employees compared to 129 in 2020[72]. - The company regularly assesses the availability of human resources to meet operational and expansion needs[147]. - The company has maintained strong relationships with suppliers and subcontractors, ensuring support in material pricing and delivery[113]. Compliance and Audit - The financial statements for the year were audited by Baker Tilly TFW LLP, who will be eligible for reappointment at the upcoming annual general meeting[185]. - Independent non-executive directors have confirmed compliance with independence guidelines as per listing rules[135]. - The company has maintained compliance with listing rules regarding the appointment of at least three independent non-executive directors throughout the year[195].