Financial Performance - For the six months ended June 30, 2019, the company's revenue increased by 52.8% to approximately SGD 13.6 million, compared to SGD 8.9 million in the same period last year[43]. - Gross profit decreased from approximately SGD 3.4 million to about SGD 1.4 million, resulting in a gross margin decline from 38.2% to 27.9% due to increased subcontracting work on ongoing projects[44]. - The company recorded a loss of approximately SGD 0.8 million for the period, compared to a profit of SGD 1.2 million for the same period in 2018[66]. - Revenue increased by approximately SGD 4.7 million or 52.8% to SGD 13.6 million for the six months ended June 30, 2019, compared to SGD 8.9 million for the same period in 2018[56]. - Gross profit decreased by approximately SGD 2.0 million or 58.8% to SGD 1.4 million, with a gross margin of 10.3% compared to 38.2% in the previous year[61]. - The company incurred an operating loss before tax of SGD 829,000 for the period, compared to a profit of SGD 1,489,000 in the prior year, reflecting a significant downturn[149]. - The net loss for the period was SGD 829,000, compared to a profit of SGD 1,227,000 in the same period last year, marking a shift from profitability to loss[149]. - The total comprehensive loss for the period amounted to SGD 838,000, contrasting with a comprehensive income of SGD 1,230,000 in the previous year[149]. - Basic and diluted loss per share for the first half of 2019 was SGD (0.10), compared to earnings of SGD 0.19 per share in the same period of 2018[149]. Project and Contract Status - As of June 30, 2019, the company had seven ongoing projects with a total contract value of approximately SGD 48.0 million, of which about SGD 40.5 million was recognized as revenue[46]. - The company completed one project during the period with a total contract value of approximately SGD 24.5 million[45]. - No new contracts were secured in the competitive Singapore construction market during the six months ended June 30, 2019, but a new contract worth approximately SGD 6.8 million was obtained afterward[51]. - The ongoing projects are primarily in public facilities, private residential complexes, educational institutions, and healthcare sectors, with contract values ranging from SGD 2.9 million to SGD 12.7 million[50]. - The management noted delays in ongoing projects due to client schedules, but these delays are not expected to significantly impact the company's financial performance[50]. - The company remains focused on bidding for new projects to maintain competitiveness in the local construction market despite ongoing challenges[43]. - The company will continue to actively participate in new project tenders to secure more contracts and enhance its market position[43]. Financial Position and Cash Flow - Cash and bank balances amounted to approximately SGD 19.1 million as of June 30, 2019, compared to SGD 18.3 million as of December 31, 2018[68]. - Total interest-bearing borrowings were approximately SGD 45,000 as of June 30, 2019, down from approximately SGD 1.4 million as of December 31, 2018[68]. - The current ratio and debt-to-equity ratio were approximately 4.7 times and 0.1% respectively as of June 30, 2019[68]. - Operating cash flow generated was SGD 2,613 million, compared to SGD 7 million in the previous year, indicating a significant improvement[163]. - The company’s cash flow from financing activities was a net outflow of SGD 1,398 million, compared to SGD 267 million in the previous year[169]. Employee and Administrative Costs - As of June 30, 2019, the group had a total of 237 employees, with total employee costs amounting to approximately SGD 3.8 million, compared to SGD 3.7 million for the same period in 2018[78]. - Administrative expenses increased by approximately SGD 0.6 million or 30.0% to SGD 2.6 million, mainly due to increased manpower costs for the tender department[62]. Use of IPO Proceeds - As of June 30, 2019, the total amount of net proceeds from the IPO was approximately SGD 132.2 million, with SGD 11.1 million utilized[101]. - The planned use of net proceeds includes hiring personnel (SGD 3.7 million), purchasing machinery and equipment (SGD 1.3 million), and expanding internal capabilities (SGD 6.9 million)[106]. - The group plans to utilize all remaining net proceeds by December 31, 2020, based on the market conditions and new project awards[104]. - The group has temporarily suspended its business expansion plans until sufficient projects are secured[97]. - The group aims to enhance its internal capabilities by hiring project managers, engineers, and BIM-certified personnel[99]. Shareholder and Governance Information - The major shareholder HMK holds 519,792,000 shares, representing 61.88% of the total issued voting shares[124]. - The rights of directors and senior executives to purchase shares or bonds are not applicable during this period, and no arrangements have been made for them to benefit from such purchases[115]. - The company did not redeem any shares during the period, nor did it or any of its subsidiaries purchase or sell any of its shares[118]. - The company has no other interests or positions in shares or related securities as of June 30, 2019, apart from those disclosed[123]. - The company confirmed compliance with corporate governance codes throughout the reporting period[135]. - The audit committee was established to oversee financial reporting and risk management, consisting of three independent non-executive directors[137]. Market and Operational Insights - The company anticipates continued challenges and volatility in the mechanical and electrical industry in Singapore and the region over the next 12 months[43]. - The company has not issued any new strategies or products during the reporting period[125]. - There are no significant changes in user data or market expansion plans disclosed in the report[126]. - The company has not engaged in any mergers or acquisitions during the reporting period[127]. - All revenue is derived from operations in Singapore, where the company’s properties, plants, and equipment are also located[197]. Revenue Breakdown - Major customers contributing over 10% of total revenue included Customer A with SGD 3,369,000, Customer B with SGD 2,669,000, Customer C with SGD 2,625,000, and Customer D with SGD 2,550,000[191]. - The revenue from electromechanical system installation for the six months ended June 30, 2019, was SGD 13,627,000, compared to SGD 8,893,000 for the same period in 2018, representing a growth of approximately 53.5%[190]. - Other income for the six months ended June 30, 2019, included interest income of SGD 177,000, government grants of SGD 40,000, and total other income amounting to SGD 352,000[199].

Market Conditions - The construction market in Singapore contracted by 3.4% in 2018, with a significant decline in public sector construction activities contributing to this downturn [10]. - The company anticipates continued volatility in the Singapore construction market, influenced by global economic conditions [11]. - The Singapore construction industry faced challenges due to government housing price control measures and the suspension of the Kuala Lumpur-Singapore High-Speed Rail project [10]. Financial Performance - The company's revenue decreased by 49.5% from approximately SGD 37.6 million in the previous fiscal year to about SGD 19.0 million for the year ended December 31, 2018 [16]. - Gross profit fell by 57.6% from approximately SGD 14.4 million to about SGD 6.1 million, with a gross margin decline of 6.2% from 38.3% to 32.1% [16][22]. - The net profit margin dropped by 87.0%, with net profit declining from approximately SGD 5.4 million to SGD 0.7 million [16]. - The company recorded a significant decline in earnings per share, falling by 89.3% from SGD 0.84 to SGD 0.09 [16]. - Revenue from private sector projects decreased from approximately SGD 26.8 million to about SGD 11.0 million, contributing 57.9% of total revenue in 2018 [18]. - Revenue from public sector projects slightly decreased from approximately SGD 10.8 million to about SGD 8.0 million, contributing 42.1% of total revenue in 2018 [19]. - The distributable reserves available to shareholders as of December 31, 2018, were approximately SGD 22,838,000, compared to SGD 23,137,000 in 2017 [81]. - The group made charitable donations totaling SGD 33,905 during the year, a decrease from SGD 104,407 in 2017 [86]. Project Management and Operations - The company has submitted six bids totaling approximately SGD 133.5 million, with ongoing bids amounting to about SGD 382.5 million [11]. - The number of ongoing projects as of December 31, 2018, was eight, with a total contract value of approximately SGD 76.8 million, of which about SGD 51.6 million has been recognized as revenue [13]. - The company is focused on developing its major customer and supplier partnerships and expanding new business opportunities [47]. - The company has adopted a cautious approach to manage operating costs and improve business efficiency in a competitive environment [6]. - The company aims to maintain competitiveness by actively participating in local construction projects and engaging directly with general contractors [11]. Cost Management - Management is focusing on cost control and operational efficiency improvements until the construction market recovers [11]. - Service costs decreased by 44.2% from approximately SGD 23.1 million to about SGD 12.9 million due to a reduction in the number of projects undertaken [21]. - Administrative expenses increased by 2.2% from approximately SGD 4.5 million to about SGD 4.6 million, primarily due to additional costs associated with being a listed company [23]. Shareholder and Governance - The group did not recommend the distribution of a final dividend for the year ended December 31, 2018 [28]. - The company has established a remuneration committee to formulate its remuneration policy based on operational performance and market practices [112]. - Directors' remuneration requires shareholder approval at the annual general meeting, with other remuneration determined by the board based on recommendations from the remuneration committee [113]. - The company has maintained indemnity provisions for directors and senior management, ensuring protection against liabilities incurred in the course of their duties [115]. - The board consists of six directors, including three executive directors and three independent non-executive directors [141]. Risk Management - The company faces significant risks due to the non-recurring nature of its projects, which may impact its financial performance if new projects are not secured [101]. - The company faces risks related to delayed payments or non-payment of receivables, which could significantly impact cash flow and working capital [102]. - The company has implemented policies to assess credit risk and determine credit limits for new customers to mitigate credit risk [102]. Human Resources - The majority of the company's workforce consists of foreign employees, and any shortage or increased costs related to foreign labor could adversely affect operations and financial performance [106]. - The company regularly evaluates its human resources to ensure sufficient labor is available to meet project needs [106]. Corporate Governance - The company has adopted a code of conduct for directors' securities transactions, ensuring compliance with the listing rules [139]. - The board is responsible for leading and controlling the company, overseeing business strategy and performance [151]. - The company emphasizes the importance of diverse backgrounds and experiences among board members to enhance decision-making processes [182]. - The Nomination Committee evaluates potential board candidates based on various criteria, including qualifications, skills, experience, and diversity factors such as gender and age [176]. Audit and Compliance - The financial statements for the year were audited by Deloitte & Touche LLP [135]. - The audit committee engaged Baker Tilly Consultancy to review the internal control system's adequacy and effectiveness for the period from January 1, 2018, to December 31, 2018, and found no significant deficiencies [192]. - The company has outsourced its internal audit function and appointed an independent internal control consultant to assess overall internal controls [195].