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].

Financial Performance - For the six months ended June 30, 2021, the company's revenue increased by 160.0% to approximately SGD 6.5 million, compared to SGD 2.5 million in the same period last year[27]. - Gross profit improved from a loss of approximately SGD 0.4 million to a profit of approximately SGD 1.3 million, resulting in a gross profit margin of 19.3%[31]. - The net loss for the period was reduced to SGD 0.3 million from SGD 2.2 million in the previous year, representing an 86.4% improvement[31]. - The company reported a loss per share of SGD 0.03, compared to SGD 0.24 in the same period last year, marking an 87.5% improvement[31]. - Total comprehensive loss for the period was SGD (261,000), a reduction from SGD (2,184,000) in the prior year[84]. - The company incurred a loss before tax of SGD (264,000) for the six months ended June 30, 2021, compared to a loss of SGD (2,157,000) in the previous year[84]. - The company reported a revenue of SGD 6,538,000 for the six months ended June 30, 2021, a significant increase of 161% compared to SGD 2,505,000 for the same period in 2020[128]. Project and Contract Information - The company has ten ongoing projects with a total contract value of approximately SGD 81.8 million, of which approximately SGD 19.6 million has been recognized as revenue[29]. - Three new projects were awarded during the six months ended June 30, 2021, with a total contract value of approximately SGD 35.0 million[30]. - The company expects to recognize SGD 62,202,000 in revenue from contracts with remaining performance obligations within one to two years[131]. Market Conditions - The construction demand in Singapore is projected to be between SGD 23 billion and SGD 28 billion for 2021, an increase from SGD 19.5 billion in 2020[26]. - The company is adopting a more cautious approach to new project tenders due to uncertainties in the construction market and potential supply chain disruptions[26]. Cost and Expenses - Service costs increased by approximately SGD 2.4 million or 82.8% to about SGD 5.3 million for the six months ended June 30, 2021, consistent with revenue growth[35]. - Administrative expenses decreased by approximately SGD 0.4 million or 16.7% to about SGD 2.0 million, attributed to the recovery of business activities[39]. - Other income decreased by approximately SGD 0.2 million or 28.6% to about SGD 0.5 million due to reduced government grants and interest income[37]. Financial Position - As of June 30, 2021, the company had cash and bank balances of approximately SGD 17.3 million, up from SGD 16.6 million as of December 31, 2020[43]. - The current ratio and debt-to-equity ratio were approximately 2.6 times and 0%, respectively, indicating a stable financial position[43]. - The company reported a total liability of SGD 7,563,000, down from SGD 7,886,000 at the end of 2020[88]. - The company's net asset value decreased to SGD 51,818,000 from SGD 52,079,000 at the end of 2020[88]. Shareholder Information - As of June 30, 2021, the total equity held by directors and senior executives in the company was 549,792,000 shares, representing 60.05% of the issued voting shares[65]. - The company maintains a public float of at least 25% of its total issued shares as per listing rules[80]. - The company did not repurchase any shares during the reporting period, nor did it buy or sell any of its shares[64]. Governance and Compliance - The audit committee consists of three independent non-executive directors, ensuring compliance with applicable accounting standards[79]. - The company has adhered to corporate governance standards as outlined in the listing rules[76]. - No significant matters affecting the group's business or financial performance were noted post-reporting period[81]. Employee and Management Costs - Employee costs totaled approximately SGD 2.7 million, compared to SGD 2.5 million for the six months ended June 30, 2020[50]. - The remuneration for key management personnel for the six months ended June 30, 2021, was SGD 597,000, a decrease of 6.7% from SGD 640,000 in the same period of 2020[164]. - The employer's contribution to the defined contribution plan was SGD 20,000 for the six months ended June 30, 2021, compared to SGD 26,000 in the same period of 2020, reflecting a 23.1% decrease[164].

SOLIS HOLDINGS LIMITED 守益控股有限公司 SOLIS HOLDINGS LIMITED (incorporated in the Cayman Islands with limited liability) Stock Code: 2227 ANNUAL REPORT 2020 ANNUAL REPORT 2020 年報 SOLIS HOLDINGS LIMITED （於開曼群島註冊成立的有限公司） 股份代號：2227 年 報 2020 目錄 目錄 公司資料 2 主席報告 4 管理層討論及分析 5 本公司董事及高層管理人員履歷詳情 11 董事會報告 16 企業管治報告 28 環境、社會及管治報告 45 獨立核數師報告 67 合併損益及其他全面收益表 73 合併財務狀況表 74 合併權益變動表 75 合併現金流量表 76 合併財務報表附註 78 五年財務概要 138 01 守益控股有限公司 • 2020年年報 公司資料 公司資料 執行董事 鄭湧華先生（主席） 張瑞清先生（於二零二零年六月二十三日獲重新委任） 陳凱犇先生（於二零二零年十月十五日獲委任） 梁乾原先生（於二零二零年六月十九日辭任 ...

Financial Performance - For the six months ended June 30, 2020, the company's revenue decreased by 81.6% to approximately SGD 2.5 million, down from SGD 13.6 million in the same period last year[23]. - The gross loss for the same period was approximately SGD 0.4 million, a decrease of about SGD 1.8 million or 128.6% compared to a gross profit of SGD 1.4 million in the previous year[23]. - The net loss for the six months ended June 30, 2020, was SGD 2.3 million, compared to a net loss of SGD 0.8 million in the prior year, representing an increase of 187.5%[26]. - The gross loss margin for the six months ended June 30, 2020, was -16.0%, compared to a gross profit margin of 10.3% in the previous year, reflecting a decline of 26.3 percentage points[26]. - The company reported a loss per share of SGD 0.25 for the six months ended June 30, 2020, compared to SGD 0.10 in the same period last year, an increase of 156.7%[26]. - The company incurred a loss before tax of SGD 2,319,000 for the six months ended June 30, 2020, compared to a loss of SGD 829,000 in the prior year, reflecting a deterioration in financial performance[107]. - The company reported a total loss attributable to owners of SGD (2,319,000) for the six months ended June 30, 2020, compared to SGD (829,000) in 2019, resulting in a basic and diluted loss per share of SGD (0.25) compared to SGD (0.10) in 2019[143]. - The company reported a pre-tax loss of SGD 2,319,000 for the six months ended June 30, 2020, compared to a loss of SGD 829,000 in the same period of 2019, indicating a significant increase in losses[114]. Revenue and Contracts - The company had eight ongoing projects as of June 30, 2020, with a total contract value of approximately SGD 47.4 million, of which about SGD 10.1 million was recognized as revenue[26]. - Two new projects were secured during the six months ended June 30, 2020, with a total contract value of approximately SGD 18.6 million, expected to commence in July and September 2020 respectively[27]. - The company expects to recognize revenue from unfulfilled contracts within one to two years, with a transaction price allocated to unfulfilled performance obligations of SGD 37,302,000 for the six months ended June 30, 2020, compared to SGD 7,539,000 in 2019[136]. - Revenue from major customers exceeding 10% of total revenue includes Customer A with SGD 485,000 and Customer E with SGD 1,516,000 for the six months ended June 30, 2020[135]. - The company reported total revenue from electromechanical system installation of SGD 2,505,000 for the six months ended June 30, 2020, down from SGD 13,627,000 in the same period of 2019, representing a decline of approximately 81.6%[132]. Economic Context - The construction industry in Singapore experienced a significant decline of 59.3% year-on-year in the second quarter of 2020, exacerbated by COVID-19 related restrictions[21]. - The Singapore economy contracted by 13.2% year-on-year in the second quarter of 2020, indicating severe economic challenges due to the pandemic[21]. Cost Management - Service costs decreased by approximately SGD 9.3 million or 76.2% to about SGD 2.9 million for the six months ended June 30, 2019, consistent with the decline in revenue[38]. - Employee costs totaled approximately SGD 2.5 million, down from about SGD 3.9 million for the six months ended June 30, 2019, with a total of 178 employees[57]. - Total employee costs for the six months ended June 30, 2020, were SGD 2,518,000, down from SGD 3,876,000 in 2019, indicating a reduction in workforce expenses[142]. - Administrative expenses decreased by approximately SGD 0.2 million or 7.7% to about SGD 2.4 million, mainly due to reduced rental expenses for dormitories used for foreign workers[42]. - Financing costs were zero SGD due to the repayment of bank loans and the expiration of vehicle financing leases[43]. Cash Flow and Liquidity - As of June 30, 2020, the group had cash and bank balances of approximately SGD 15.8 million and undrawn bank financing of about SGD 6.8 million[48]. - The company’s cash flow statement reflects a significant reduction in cash and cash equivalents, indicating potential liquidity challenges[155]. - Cash and cash equivalents decreased by SGD 5,383,000, compared to an increase of SGD 739,000 in the previous year[116]. - The company’s cash and cash equivalents at the end of the period stood at SGD 10,571,000, down from SGD 19,066,000 at the end of the previous year[116]. - Operating cash flow before changes in working capital was negative SGD 2,039,000, worsening from negative SGD 694,000 year-on-year[114]. - Net cash generated from operating activities was SGD 1,656,000, down from SGD 2,432,000 in the previous year, reflecting a decline of approximately 31.8%[114]. Corporate Governance - The company has established an audit committee to oversee financial reporting and risk management, ensuring compliance with applicable accounting standards[104]. - The audit committee consists of three independent non-executive directors, enhancing corporate governance standards[104]. - The company has maintained high standards of corporate governance to protect shareholder interests and enhance accountability[99]. - The company has complied with all applicable principles and code provisions of the corporate governance code during the reporting period[100]. - No known conflicts of interest or competition from directors or major shareholders during the reporting period[98]. Shareholder Information - HMK holds 529,792,000 shares, representing 57.86% of the company's voting shares[92]. - Mrs. Zheng, as the spouse of Mr. Zheng, is deemed to hold 549,792,000 shares, accounting for 60.05% of the voting shares[92]. - Bao Xin Credit Limited holds 519,792,000 shares, which is 56.77% of the voting shares[92]. - The shares held by HMK are subject to a mortgage agreement as collateral for loans, indicating potential risks related to ownership[96]. - The company maintained a public float of at least 25% of its issued shares as required by listing rules[105]. Other Financial Information - The company has not applied any new or revised International Financial Reporting Standards that would have a significant impact on its financial performance or disclosures in the foreseeable future[122]. - The company has not disclosed any new product developments or market expansion strategies in the current report[106]. - There were no significant matters related to the group's business or financial performance noted by the board after the reporting period[106]. - The company has no convertible securities, resulting in basic and diluted loss per share being the same[144]. - The company has not recognized any impairment losses for trade receivables as of June 30, 2020, based on the assessment of credit risk[150].

Market Conditions - The construction market in Singapore continues to decline, with a reported growth of only 2.8% in the construction industry, an improvement from a 3.5% decline in 2018[31]. - The overall business environment is expected to remain challenging in the short term, with continued volatility in the Singapore construction market[28]. - The company anticipates continued pressure on contract amounts and increased operational costs in the competitive local construction market[33]. Financial Performance - The company experienced significant financial losses due to intensified competition and economic uncertainty, impacting overall performance[28]. - The profitability of recently won projects has decreased by 50% to 70% compared to previous fiscal years, driven by lower bidding prices[32]. - The company's revenue for the year ended December 31, 2019, increased by 4.7% to approximately SGD 19.9 million, compared to SGD 19.0 million in the previous fiscal year[34]. - The gross loss decreased significantly to approximately SGD 2.4 million, a decline of 139.3% from a gross profit of approximately SGD 6.1 million in the previous year[34]. - The gross profit margin fell sharply from approximately 32.1% in the previous year to about (12.1%) in the current year[41]. - The company recorded a net loss of approximately 7.6 million SGD for the year, a decrease of about 8.3 million SGD compared to a net profit of approximately 0.7 million SGD in 2018[54]. - The revenue from the top five customers accounted for approximately 86.0% of total revenue in the current year, up from 76.0% in 2018[124]. - The company reported a distributable reserve of approximately SGD 22,311,000 as of December 31, 2019, compared to SGD 22,838,000 in 2018[130]. Cost Management and Strategy - The company aims to optimize its cost structure and pricing strategies to mitigate the impact of tightening profit margins[28]. - Service costs increased by approximately 72.9% to about SGD 22.3 million, up from approximately SGD 12.9 million in the previous year[47]. - The company plans to enhance competitiveness and improve profit margins through skill upgrades and the adoption of innovative technologies[33]. - The company plans to retain senior employees and develop project teams to maintain competitive advantages in a challenging market[28]. Project and Contract Management - The company completed six projects with a total contract value of approximately SGD 63.6 million during the year ended December 31, 2019[36]. - As of December 31, 2019, there were four ongoing projects with a total contract value of approximately SGD 20.9 million, of which approximately SGD 7.6 million was recognized as revenue[37]. - The company secured two new contracts during the year with a total contract value of approximately SGD 9.9 million, and an additional contract worth SGD 6.9 million was obtained after the fiscal year-end[39]. - The contribution from public sector projects increased from approximately SGD 8.0 million to about SGD 10.3 million, while private sector project contributions decreased from SGD 11.0 million to SGD 9.6 million[43]. Human Resources and Employee Management - The company plans to expand its internal capabilities by hiring project managers, engineers, and workers, although business expansion plans are currently on hold until sufficient projects are secured[72][80]. - The company has retained and hired certified personnel for Building Information Modeling (BIM) capabilities to enhance operational efficiency[82]. - The company emphasizes the importance of employee safety and has implemented health and safety procedures, including the use of prefabricated volumetric construction to reduce on-site work risks[135]. Acquisitions and Expansion - The company entered into a purchase agreement to acquire 49% of D.D. Resident Co. Ltd. in Thailand for HKD 58 million, which was completed on January 16, 2020[86]. - The acquisition aims to expand the company's operations into Thailand, mitigating regional operational risks from a weak market in Singapore[87]. - The company plans to enhance the performance of D.D. Resident Co. Ltd. through staff training and process improvements, expecting continuous profit contributions[87]. - The company has postponed its business expansion plans until sufficient projects are secured to support growth[82]. Governance and Compliance - The company confirmed compliance with all applicable principles and provisions of the corporate governance code during the year[199]. - The board of directors has formed a remuneration committee to establish the company's remuneration policy based on operational performance and market practices[168]. - The company has insurance coverage for directors and senior management to provide appropriate protection against liabilities incurred in the course of their duties[171]. Shareholding and Financial Structure - As of December 31, 2019, the company has a total of 519,792,000 shares held by HMK Investment Holdings Limited, representing 61.88% of the company's issued voting shares[179]. - The shareholding structure indicates that HMK is the beneficial owner of 519,792,000 shares, with Zheng Yonghua, Zheng Yongming, and Zheng Ruqing holding 90%, 6%, and 4% respectively[182]. - The company has established a share option scheme to incentivize eligible individuals and retain talent, with a nominal exercise price of HKD 1.00 per option[186]. - The company maintained a public float of at least 25% of its issued shares as required by listing rules[194]. Risk Management - The company faces significant risks due to the non-recurring nature of its projects, which may affect its ability to secure new contracts after current projects are completed[162]. - The company relies heavily on foreign workers, and any shortage or inability to retain them may adversely impact its operations and financial performance[165]. - The company has established policies to mitigate credit risk, including credit limit determination and monitoring procedures to ensure timely collection of receivables[163].