Financial Statements [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the three and nine months ended March 31, 2020, the company experienced a decline in both revenue and profit compared to the prior year Summary of Consolidated Statement of Profit or Loss (Unit: SGD) | Indicator | Three Months Ended March 31 (2020) | Three Months Ended March 31 (2019) | Nine Months Ended March 31 (2020) | Nine Months Ended March 31 (2019) | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | 1,691,852 | 2,556,146 | 5,617,736 | 6,716,705 | | **Gross Profit** | 605,042 | 748,376 | 2,079,727 | 2,142,192 | | **Profit Before Tax** | 240,952 | 314,007 | 353,661 | 401,757 | | **Profit for the Period** | 183,657 | 275,883 | 241,678 | 340,268 | | **Basic Earnings Per Share (SGD cents)** | 0.02 | 0.03 | 0.03 | 0.06 | [Unaudited Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of March 31, 2020, total equity slightly increased to approximately SGD 14.86 million, primarily driven by the period's profit Summary of Changes in Equity (For the Nine Months Ended March 31, 2020) | Item | Amount (SGD) | | :--- | :--- | | Balance as at July 1, 2019 (Audited) | 14,621,830 | | Profit for the Period | 241,678 | | Other Comprehensive Loss for the Period | (243) | | **Balance as at March 31, 2020 (Unaudited)** | **14,863,265** | Notes to the Financial Statements [General Information and Basis of Preparation](index=8&type=section&id=1.%20General%20Information) The company, an investment holding entity, primarily provides audio and communication system services in Singapore, with financial statements prepared in SGD under IFRS - The company's principal activities involve the sale of audio and communication systems and related services, integrated services, and alarm system services in Singapore[19](index=19&type=chunk) - The company is a subsidiary of Express Ventures Global Limited, ultimately controlled jointly by Mr. Mong Keng Yew and his spouse Ms. Chong Siew Lan[17](index=17&type=chunk) [Revenue and Segment Information](index=11&type=section&id=3.%20Revenue%20and%20Segment%20Information) Total revenue for the nine months ended March 31, 2020, decreased by 16.4% to SGD 5.62 million, with all operations based in Singapore Revenue by Business Segment (Unit: SGD) | Business Segment | Nine Months Ended March 31, 2020 | Nine Months Ended March 31, 2019 | | :--- | :--- | :--- | | Sale of Audio and Communication Systems and Related Services | 4,318,118 | 4,921,278 | | Integrated Services for Audio and Communication Systems | 642,960 | 1,138,769 | | AAS Services | 656,658 | 656,658 | | **Total** | **5,617,736** | **6,716,705** | - All of the Group's business operations and revenue are derived from Singapore[26](index=26&type=chunk) [Notes on Other Financial Items](index=12&type=section&id=4.%20Other%20Income%20and%20Losses) Net other income for the nine months ended March 31, 2020, turned positive due to foreign exchange gains, while staff costs and income tax expenses increased - Other income and losses for the nine-month period shifted from a **loss of SGD 0.047 million** in the prior year to a **gain of SGD 0.181 million**, primarily due to foreign exchange gains[27](index=27&type=chunk) - Total staff costs (including directors' remuneration) for the nine-month period increased from **SGD 2.25 million** in the prior year to **SGD 2.50 million**[32](index=32&type=chunk) - Income tax expense for the nine-month period increased from **SGD 0.061 million** in the prior year to **SGD 0.112 million**[34](index=34&type=chunk) [Earnings Per Share and Dividends](index=16&type=section&id=8.%20Earnings%20Per%20Share%20for%20the%20Period) Basic and diluted earnings per share for the nine months ended March 31, 2020, decreased to SGD 0.03 cents, with no dividends proposed or paid Earnings Per Share | Indicator | Nine Months Ended March 31, 2020 | Nine Months Ended March 31, 2019 | | :--- | :--- | :--- | | **Basic and Diluted Earnings Per Share (SGD cents)** | 0.03 | 0.06 | - No dividends were proposed or paid by the company during the reporting period[37](index=37&type=chunk) Management Discussion and Analysis [Business Development and Prospects](index=17&type=section&id=Business%20Development%20and%20Prospects) Net profit declined due to project slowdowns in Q1 2020, with COVID-19 measures in Singapore creating uncertain impacts, while the Group plans for expansion - Net profit for the nine months ended March 31, 2020, was approximately **SGD 0.2 million**, lower than **SGD 0.3 million** in the prior year, primarily due to reduced gross profit from project slowdowns in Q1 2020[39](index=39&type=chunk) - The Singapore government implemented work suspension measures from April 7, 2020, in response to the COVID-19 pandemic, with the extent of impact on the Group's business and financial performance remaining uncertain[40](index=40&type=chunk)[43](index=43&type=chunk) - The Group plans to expand its personnel and equipment, actively seeking opportunities to broaden its customer base and market share, while also evaluating the feasibility of business expansion in China and Southeast Asia[44](index=44&type=chunk)[46](index=46&type=chunk) [Financial Review](index=19&type=section&id=Financial%20Review) Revenue decreased by 16.4% to SGD 5.6 million due to project delays, though gross profit margin improved, while administrative expenses and other income saw changes - Revenue decreased by **16.4%** year-on-year to approximately **SGD 5.6 million**, primarily due to work stoppages and project delays[47](index=47&type=chunk) - Gross profit margin increased from **31.9%** in the prior year to **37.0%**, driven by enhanced profitability in the audio and communication systems sales and related services segment[48](index=48&type=chunk) - Administrative expenses increased by **12.8%** year-on-year to approximately **SGD 2.0 million**, mainly due to higher staff salaries and an increase in administrative personnel[51](index=51&type=chunk) - Other income significantly increased from a **loss of SGD 0.047 million** in the prior year to a **gain of SGD 0.181 million**, primarily from foreign exchange gains[53](index=53&type=chunk) [Use of Proceeds from Share Offer](index=22&type=section&id=Use%20of%20Proceeds%20from%20Share%20Offer%20and%20Comparison%20of%20Business%20Objectives%20with%20Actual%20Business%20Progress) As of March 31, 2020, the company utilized HKD 17 million (38.6%) of its IPO proceeds, mainly for loan repayment and working capital, with some plans postponed Use of Proceeds from Share Offer (As of March 31, 2020) | Purpose | Allocated Amount (HKD Million) | Actual Use (HKD Million) | Percentage Utilized | | :--- | :--- | :--- | :--- | | Enhance Marketing Efforts | 1.4 | 0.2 | 14.3% | | Expand and Train Workforce | 11.6 | 2.8 | 24.1% | | Purchase Vehicles | 3.0 | 0.5 | 16.7% | | Establish New Sales Offices | 10.0 | – | 0.0% | | Repay Part of Bank Loans | 10.0 | 10.0 | 100.0% | | Provide Resources for Performance Guarantees | 2.0 | – | 0.0% | | Obtain Higher Grade Qualifications | 2.5 | – | 0.0% | | General Working Capital | 3.5 | 3.5 | 100.0% | | **Total** | **44.0** | **17.0** | **38.6%** | - Unutilized proceeds are held as interest-bearing deposits with authorized financial institutions in Hong Kong and Singapore[77](index=77&type=chunk) [Post-Reporting Period Events](index=27&type=section&id=Post-Reporting%20Period%20Events) Singapore's extended work suspension until June 1, 2020, will further slow project progress, with the full impact of COVID-19 on the Group's performance still unassessable - Singapore's work suspension measures were extended to **June 1, 2020**, further slowing the Group's business project progress[78](index=78&type=chunk) - Due to the potential continuation of the pandemic, the extent of COVID-19's impact on the Group's business and financial performance cannot currently be assessed[81](index=81&type=chunk) Disclosure of Interests and Other Information [Disclosure of Directors' and Major Shareholders' Interests](index=29&type=section&id=Interests%20and%2For%20Short%20Positions%20of%20Directors%20and%20Chief%20Executives%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20or%20any%20Associated%20Corporation) As of March 31, 2020, controlling shareholders Mr. Mong Keng Yew and Ms. Chong Siew Lan jointly held 50.75% of the company's shares through Express Ventures - Executive Directors Mr. Mong Keng Yew and Ms. Chong Siew Lan are deemed to jointly hold **406,000,000 shares**, representing **50.75%** of the company's equity, through their controlled corporation Express Ventures[88](index=88&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk) Major Shareholders' Shareholding | Name | Capacity/Nature | Number of Shares Held | Percentage of Equity | | :--- | :--- | :--- | :--- | | Express Ventures | Beneficial Owner | 406,000,000 | 50.75% | | Peng Xiaomin | Beneficial Owner | 41,650,000 | 5.21% | | Cai Linzhou | Beneficial Owner | 41,400,000 | 5.18% | [Corporate Governance and Compliance](index=34&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company adheres to GEM Listing Rules for directors' securities transactions, maintains sufficient public float, and its audit committee has reviewed the unaudited quarterly results - The company has adopted a code of conduct for directors' securities transactions, and all directors have confirmed compliance with the required standards during the reporting period[106](index=106&type=chunk) - The company maintained a sufficient public float as stipulated by the GEM Listing Rules[108](index=108&type=chunk) - The Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited third-quarter results for the period[116](index=116&type=chunk) - No share options have been granted under the share option scheme since its adoption[113](index=113&type=chunk)

Financial Performance - Revenue for the three months ended December 31, 2019, was SGD 1,815,668, a decrease of 28.1% compared to SGD 2,527,668 for the same period in 2018[5] - Gross profit for the six months ended December 31, 2019, was SGD 1,474,685, an increase of 5.8% from SGD 1,393,816 in the same period of 2018[5] - The company reported a net loss attributable to equity holders of SGD 171,649 for the three months ended December 31, 2019, compared to a profit of SGD 37,041 in the same period of 2018[5] - Total revenue for the six months ended December 31, 2019, was SGD 3,925,884, a decrease of 5.4% compared to SGD 4,150,559 for the same period in 2018[41] - The company reported a pre-tax loss of SGD 171,649 for the six months ended December 31, 2019, compared to a profit of SGD 64,385 in the same period of 2018[53] - The company recorded a net profit of approximately SGD 58,000 for the period, down from about SGD 64,000 in the same period of 2018[126] Assets and Liabilities - Total assets as of December 31, 2019, amounted to SGD 17,456,043, a slight increase from SGD 17,402,732 as of June 30, 2019[14] - Current liabilities increased to SGD 1,347,880 as of December 31, 2019, compared to SGD 1,246,655 as of June 30, 2019[14] - The company’s total equity increased to SGD 14,679,866 as of December 31, 2019, compared to SGD 14,621,830 as of June 30, 2019[14] - The company’s total liabilities increased to SGD 953,125 as of December 31, 2019, from SGD 794,028 as of June 30, 2019, marking a rise of 20%[89] - Trade payables increased to SGD 514,287 as of December 31, 2019, from SGD 338,755 as of June 30, 2019, reflecting a growth of 51.8%[89] Cash Flow - The net cash used in operating activities for the period is SGD (30,680), compared to SGD (737,578) in the previous year, indicating a significant improvement[32] - The net cash used in investing activities is SGD (25,692) for the current period, slightly better than SGD (30,157) in the previous year[32] - The net cash used in financing activities is SGD (106,325), a decrease from SGD (1,723,904) in the previous year, showing a reduction in financing outflows[32] - The cash and cash equivalents at the end of the period amount to SGD 9,493,695, compared to SGD 8,640,204 in the previous year, reflecting an increase of approximately 9.9%[32] Revenue Breakdown - Revenue from audio and communication system sales and related services was SGD 2,954,620 for the six months ended December 31, 2019, down from SGD 3,046,846 in the previous year, representing a decline of 3.0%[41] - Integrated services revenue increased to SGD 533,492 for the six months ended December 31, 2019, compared to SGD 665,941 in the same period of 2018, reflecting a decrease of 19.9%[41] - AAS services revenue remained stable at SGD 437,772 for both the six months ended December 31, 2019, and 2018[41] Expenses - The company experienced a decrease in administrative expenses to SGD 769,421 for the three months ended December 31, 2019, from SGD 849,794 in the same period of 2018, reflecting a reduction of 9.4%[5] - Total employee costs, including directors' remuneration, amounted to SGD 1,742,290 for the six months ended December 31, 2019, an increase from SGD 1,488,115 in the previous year, representing a rise of 17.0%[48] - Administrative expenses increased by approximately SGD 18,000 or 1.4% to about SGD 1.37 million, primarily due to rising labor costs[123] Shareholder Information - As of December 31, 2019, Mr. Mong King Yiu and Ms. Chuang Siu Lan jointly hold 407,700,000 shares, representing 50.96% of the company's ordinary shares[155] - The major shareholders include Express Ventures with 407,700,000 shares (50.96%) and Peng Hsiu Min with 41,650,000 shares (5.21%) as of December 31, 2019[160] Corporate Governance - The company has adopted corporate governance practices in line with GEM listing rules to enhance transparency and accountability[171] - The audit committee, consisting of three independent non-executive directors, oversees financial reporting and internal controls[173] Future Outlook - The company plans to continue focusing on the sales, installation, and maintenance of audio and communication systems, as well as alarm systems, to drive future growth[113] - The company is cautiously optimistic about business expansion opportunities in Singapore and the Asia-Pacific region[117]

Financial Performance - Revenue for the first quarter ended September 30, 2019, was SGD 2,110,216, representing a 30.1% increase from SGD 1,622,891 in the same period of 2018[5] - Gross profit for the same period was SGD 709,631, up from SGD 500,184, indicating a gross margin improvement[5] - Profit before tax surged to SGD 235,597, compared to SGD 35,271 in the prior year, reflecting a significant growth of 570.5%[5] - Net profit for the quarter was SGD 229,671, a substantial increase from SGD 27,344 in the previous year, marking an increase of 740.5%[5] - Basic and diluted earnings per share rose to SGD 0.03, compared to SGD 0.003 in the same quarter of 2018[7] - Total comprehensive income for the period was SGD 229,634, significantly higher than SGD 27,344 in the previous year[7] Expenses and Costs - Administrative expenses increased to SGD 597,379 from SGD 498,533, reflecting a rise of 19.9%[5] - Total employee costs, including directors' remuneration, amounted to SGD 845,013, an increase from SGD 764,483 in the previous year[39] - Financial costs related to bank borrowings were SGD 9,255, a decrease from SGD 11,783 in the same period of 2018[35] - Cost of sales/service rose by approximately SGD 0.3 million or 24.8% to about SGD 1.4 million, attributed to increased materials purchased and subcontractor hiring[58] - Administrative expenses rose by approximately SGD 98,900 or 19.8% to about SGD 597,400, primarily due to increased labor costs[62] - Financial costs decreased by approximately SGD 2,500 or 21.4% to about SGD 9,300, mainly due to repayment of mortgage principal[63] - Income tax expenses decreased by approximately SGD 2,000 or 25.2% to about SGD 5,900, mainly due to prior year overprovision[65] Revenue Sources - The company’s total revenue from audio and communication system sales and related services was SGD 1,676,268, showing a substantial increase from SGD 986,651 in the previous year[31] - Other income for the quarter was SGD 24,500, compared to SGD 19,743 in the same period last year, showing a growth of 24.5%[5] - Other income increased by approximately SGD 87,200 or 192% to about SGD 132,600, mainly due to foreign exchange gains from currencies other than SGD[61] Shareholder Information - The total equity attributable to equity shareholders increased to SGD 14,851,464 as of September 30, 2019, up from SGD 14,701,587 at the end of the previous year[10] - The company has not declared or paid any dividends during the period, consistent with the previous year[48] - As of September 30, 2019, Express Ventures holds 407,700,000 shares, representing 50.96% of the company's equity[89] Strategic Plans and Market Outlook - The company plans to expand its personnel and machinery resources to enhance bidding capabilities for future projects and aims to increase its customer base and market share[52] - The company is cautiously optimistic about business expansion opportunities in Singapore and the Asia-Pacific region[55] - The company is exploring and evaluating potential large-scale projects in Singapore's audio and communication systems sector[74] - The company is actively seeking large-scale potential projects that require performance guarantees[74] Corporate Governance - The company is committed to high standards of corporate governance to enhance confidence among shareholders and stakeholders[102] - An audit committee was established on December 14, 2017, consisting of three independent non-executive directors, responsible for reviewing financial statements and internal controls[104] - The unaudited first-quarter results have not been reviewed by the independent auditor but were reviewed by the audit committee members[104] Miscellaneous - The company has not reported any significant events after the reporting period[78] - The company has postponed the acquisition of a truck due to varying project requirements[74] - The company has delayed plans to establish a new sales office in Singapore due to current industry client demands[74] - The company is currently reviewing its project portfolio and has postponed steps to meet the minimum financial requirements for the "L6" level in mechanical and electrical trades until April 2020[74] - The company confirmed that it maintained sufficient public float as per GEM listing rules during the relevant period[96] - No direct or indirect competition or conflicts of interest were reported by directors or major shareholders during the relevant period[97] - The company has not purchased, sold, or redeemed any of its listed securities during the relevant period[100] - The company adopted a share option scheme on December 14, 2017, but no options have been granted under this scheme since its adoption[101] - The exchange rate used for conversion is 1 Singapore Dollar to 5.85 Hong Kong Dollars[106] - The report will be published on the GEM website and the company's website for at least seven days from the publication date[108]

Financial Performance - The company experienced a revenue decline of 5.1% in the fiscal year ending June 30, 2019, due to increased competition in the Singapore audio and communication services industry[34] - The company reported a significant increase in revenue, achieving a total of $150 million for the fiscal year, representing a 20% growth compared to the previous year[44] - The company recorded revenue of approximately SGD 8.6 million for the year ended June 30, 2019, a decrease of about SGD 0.5 million or 5.1% from SGD 9.1 million for the year ended June 30, 2018[69] - Revenue from sales and related services of audio and communication systems decreased from approximately SGD 7.2 million in 2018 to SGD 6.4 million in 2019, accounting for about 79.3% and 74.6% of total revenue respectively[64] - Revenue from integrated services for audio and communication systems increased from approximately SGD 1.0 million in 2018 to SGD 1.3 million in 2019, representing about 11.1% and 15.3% of total revenue respectively[65] - Revenue from AAS services remained stable at approximately SGD 0.9 million, accounting for about 9.6% and 10.2% of total revenue for 2018 and 2019 respectively[66] - Gross profit decreased from approximately SGD 3.2 million in 2018 to SGD 2.7 million in 2019, with a gross profit margin declining from about 35.7% to 31.7%[71] - Administrative expenses increased by approximately SGD 0.8 million or 42.8% to about SGD 2.7 million in 2019, primarily due to increased compliance and labor costs[73] - Other income increased from approximately SGD 170,400 in 2018 to about SGD 354,900 in 2019, mainly due to gains from the sale of Crosswins Group Holdings Limited[72] Future Projections and Plans - The company provided guidance for the next fiscal year, projecting revenue growth of 25% to $187.5 million[44] - New product launches are expected to contribute an additional $30 million in revenue, with a focus on innovative technology solutions[44] - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years[44] - A strategic acquisition of a local competitor is anticipated to enhance the company's service offerings and increase market penetration[44] - The company plans to strengthen its team by hiring engineers to provide innovative integrated system solutions, supporting the growing demand in the education and healthcare sectors[35] - The company plans to implement cost-cutting measures aimed at improving operational efficiency, targeting a 5% reduction in overhead costs[44] - The company plans to enhance marketing efforts in Singapore's audio and communications industry, with a budget of SGD 1.4 million, of which only 14.3% has been utilized[112] - The company plans to establish a new sales office in Singapore and acquire a new property for sales and communication services[117] Employee and Workforce Development - The total number of employees, including directors, increased to 71 as of June 30, 2019, from 59 in 2018[98] - Employee compensation is determined based on current market levels, with annual performance evaluations conducted to recognize and reward employee performance[149] - The employee turnover rate for the year is approximately 15.5%, with a breakdown of 21% for employees aged 18-30, 8% for those aged 31-40, and 22% for those aged 41-50[158] - 59% of male employees and 38% of female employees participated in training, with average training hours of approximately 9.17 hours for males and 1.92 hours for females[168] - The company achieved BizSafe Level 3 certification, ensuring compliance with health and safety training requirements for employees[160] - The company has implemented comprehensive on-the-job training for new hires to familiarize them with corporate history, culture, and internal policies[168] - The company has established an education sponsorship program to encourage employees to participate in relevant external training courses[165] Environmental Compliance and Sustainability - The company is committed to environmental compliance and has implemented policies to reduce emissions and use resources effectively[128] - The company has reported a decrease in nitrogen oxides (NOx) emissions from 67.82 kg in 2017/18 to 66.01 kg in 2018/19[133] - Sulfur oxides (SOx) emissions decreased from 60.45 g in 2017/18 to 58.84 g in 2018/19[133] - Particulate matter (PM) emissions decreased from 6.50 kg in 2017/18 to 6.33 kg in 2018/19[133] - Direct greenhouse gas emissions (Scope 1) from mobile combustion sources decreased from 9.81 tons CO2 in 2017/18 to 9.55 tons CO2 in 2018/19, a reduction of approximately 2.65%[134] - Energy indirect emissions (Scope 2) from purchased electricity dropped significantly from 16.44 tons CO2 in 2017/18 to 12.34 tons CO2 in 2018/19, representing a decrease of about 25.00%[134] - The company is committed to reducing emissions and waste, aiming to enhance resource efficiency and promote green office practices[143] - The company has implemented policies to ensure a safe working environment and compliance with relevant laws[198] Quality Management and Compliance - The company has established a quality management system compliant with ISO 9001:2015 standards, certified by SGS International Certification Services Singapore Pte Ltd[176] - No complaints or claims regarding the quality of work performed by the company or its subcontractors were received during the year, indicating effective quality management measures[176] - The company emphasizes compliance with various data protection laws, ensuring strict confidentiality of customer data[177] - The company has implemented anti-corruption policies and guidelines, prohibiting any form of fraud and corruption, including bribery and extortion[180] - There were no known violations of laws related to bribery, extortion, fraud, or money laundering that significantly impacted the company during the year[181] Community Engagement - The company provided various short-term internship opportunities for students from the Institute of Technology Education, supporting community development[182] - The company aims to expand its community service efforts and contribute to local communities using its expertise and resources[182] - The company maintains close communication with customers to understand and meet their needs and expectations, continuously improving service quality[176] - The company actively monitors supplier performance based on service quality, timeliness, responsiveness, and compliance with regulations[176]

[Financial Statements](index=4&type=section&id=Financial%20Statements) The financial statements provide a comprehensive overview of the Group's financial performance and position [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group achieved a significant turnaround from loss to profit in the nine months ended March 31, 2019, driven by revenue growth and the absence of large one-off listing expenses incurred in the prior year | Indicator (SGD) | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | Nine Months Ended March 31, 2019 | Nine Months Ended March 31, 2018 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | 2,556,146 | 1,321,596 | 6,716,705 | 6,203,831 | | **Gross Profit** | 748,376 | 321,043 | 2,142,192 | 2,087,839 | | **Profit (Loss) Before Tax** | 314,007 | (610,030) | 401,757 | (2,392,193) | | **Profit (Loss) for the Period Attributable to Owners of the Company** | 275,883 | (704,974) | 340,268 | (2,571,486) | | **Basic and Diluted Earnings (Loss) Per Share (Singapore Cents)** | 0.03 | (0.09) | 0.06 | (0.39) | [Unaudited Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) The Group's total equity increased from approximately SGD 14.67 million at the beginning of the period to approximately SGD 15.01 million at the end of the nine months ended March 31, 2019, primarily due to the net profit recorded | Item (SGD) | Balance as at July 1, 2018 (Audited) | Profit for the Period | Other Comprehensive Income for the Period | Balance as at March 31, 2019 (Unaudited) | | :--- | :--- | :--- | :--- | :--- | | **Total** | 14,674,243 | 340,268 | 159 | 15,014,670 | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations of the financial statement figures, covering company information, accounting policies, revenue segments, and cost structures [1. General Information](index=9&type=section&id=1.%20General%20Information) ISP Global Limited is an investment holding company incorporated in the Cayman Islands, listed on GEM of HKEX on January 16, 2018, with operating subsidiaries primarily engaged in sales and services of audio and communication systems and alarm system services in Singapore - The Company is an investment holding company, with its operating subsidiaries primarily engaged in the sale and related services of audio and communication systems, integrated services, and alarm system services in Singapore[21](index=21&type=chunk)[24](index=24&type=chunk) [2. Basis of Preparation](index=11&type=section&id=2.%20Basis%20of%20Preparation) These financial statements are prepared in accordance with International Financial Reporting Standards, with the Group adopting IFRS 9 and IFRS 15 for the first time this fiscal year, which had no significant impact on the consolidated statement of profit or loss - The Group adopted **IFRS 9 (Financial Instruments)** and **IFRS 15 (Revenue from Contracts with Customers)**, applying transitional provisions without restating prior periods[29](index=29&type=chunk)[33](index=33&type=chunk) - The adoption of **IFRS 15** had no significant impact on the Group's consolidated statement of profit or loss[36](index=36&type=chunk) [3. Revenue and Segment Information](index=15&type=section&id=3.%20Revenue%20and%20Segment%20Information) The Group's revenue is entirely derived from Singapore and categorized into three business segments, with "Sales and Related Services of Audio and Communication Systems" being the largest contributor at approximately SGD 4.92 million for the nine months ended March 31, 2019 | Revenue Source (Nine Months Ended March 31, 2019) | Amount (SGD) | | :--- | :--- | | Sales and Related Services of Audio and Communication Systems | 4,921,278 | | Integrated Services of Audio and Communication Systems | 1,138,769 | | AAS Services | 656,658 | | **Total** | **6,716,705** | - All of the Group's property, plant, and equipment are located in Singapore, and all revenue is derived from Singapore[41](index=41&type=chunk) [4. Other Income and Losses](index=16&type=section&id=4.%20Other%20Income%20and%20Losses) Net other losses significantly decreased to approximately SGD 47,000 for the nine months ended March 31, 2019, from SGD 2.8 million in the prior year, primarily due to the absence of a one-off listing expense - Other income and losses primarily include exchange losses and losses on disposal of a subsidiary; the significant loss in the prior period was mainly due to **SGD 2.65 million in listing expenses**, which did not recur in this reporting period[42](index=42&type=chunk) [5. Finance Costs](index=17&type=section&id=5.%20Finance%20Costs) Finance costs, primarily bank borrowing interest, decreased to SGD 29,260 for the nine months ended March 31, 2019, from SGD 50,790 in the prior year - Finance costs entirely comprise **bank borrowing interest**, with the year-on-year decrease mainly attributable to the repayment of part of bank mortgage loans[45](index=45&type=chunk)[76](index=76&type=chunk) [6. Profit (Loss) Before Tax](index=18&type=section&id=6.%20Profit%20(Loss)%20Before%20Tax) This report details various costs impacting profit before tax, with total staff costs increasing to SGD 2.25 million and material costs rising to SGD 2.97 million for the nine months ended March 31, 2019 - Total staff costs, including directors' emoluments, increased from approximately **SGD 2.02 million** in the prior period to approximately **SGD 2.25 million** in the current period[47](index=47&type=chunk)[50](index=50&type=chunk) [7. Income Tax Expense](index=20&type=section&id=7.%20Income%20Tax%20Expense) Income tax expense for the nine months ended March 31, 2019, was SGD 61,489, calculated based on Singapore's 17% corporate income tax rate, including adjustments for current and deferred tax - Singapore corporate income tax is provisioned at **17%**, with income tax expense for the nine months totaling **SGD 61,489**[52](index=52&type=chunk) [8. Earnings (Loss) Per Share](index=21&type=section&id=8.%20Earnings%20(Loss)%20Per%20Share) Basic and diluted earnings per share significantly improved to 0.06 Singapore Cents for the nine months ended March 31, 2019, from a loss of 0.39 Singapore Cents per share in the prior year, with diluted EPS equaling basic EPS due to no dilutive potential ordinary shares - For the nine months ended March 31, 2019, basic and diluted earnings per share were **0.06 Singapore Cents**, compared to a loss of **0.39 Singapore Cents** per share in the prior period[55](index=55&type=chunk) [9. Dividends](index=22&type=section&id=9.%20Dividends) The company's board of directors did not recommend or declare any dividends during the nine months ended March 31, 2019 - Neither the Company nor any of its subsidiaries proposed or paid any dividends[58](index=58&type=chunk) [Management Discussion and Analysis](index=23&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's operational performance, financial position, and future outlook [Business Development and Prospects](index=23&type=section&id=Business%20Development%20and%20Prospects) The Group successfully turned around from a loss to a net profit of approximately SGD 0.3 million during the reporting period, primarily due to the absence of non-recurring listing expenses incurred in the prior year, with management cautiously optimistic about future growth - The Group turned from a loss of **SGD 2.6 million** in the prior period to a net profit of approximately **SGD 0.3 million** in the current period, mainly due to **SGD 2.7 million** in non-recurring listing expenses in the prior period[61](index=61&type=chunk) - The Group plans to expand its workforce, machinery, and equipment to increase resources for future project bidding and actively seek to expand its customer base and market share[62](index=62&type=chunk) [Financial Review](index=24&type=section&id=Financial%20Review) This section provides a detailed analysis of financial performance, highlighting an 8.3% revenue increase, a slight decrease in gross profit margin, and significant reductions in other losses and finance costs as key drivers of profitability - Revenue increased by approximately **8.3%** compared to the prior period in 2018, primarily due to an increase in awarded contract amounts[66](index=66&type=chunk) - Gross profit margin decreased from **33.7%** to **31.9%**, mainly due to a significant increase in labor costs to ensure timely project completion[67](index=67&type=chunk) - Other losses significantly decreased from **SGD 2.8 million** in the prior period to **SGD 47,000** in the current period, primarily due to the non-recurring listing expenses of approximately **SGD 2.7 million** in the prior period[73](index=73&type=chunk) - Finance costs decreased by **42.4%**, mainly due to the repayment of part of bank mortgage loans in July 2018[76](index=76&type=chunk) [Use of Proceeds from Share Offer](index=27&type=section&id=Use%20of%20Proceeds%20from%20Share%20Offer) The company disclosed the utilization progress of IPO proceeds, with approximately HKD 15.7 million (35.7% of the net proceeds) utilized as of March 31, 2019, primarily for bank loan repayment and general working capital, while some planned initiatives were postponed | Use | Designated Amount in Prospectus (HKD Million) | Actual Use (HKD Million) | Percentage Utilized | | :--- | :--- | :--- | :--- | | Enhance Marketing Efforts | 1.4 | 0.1 | 7.1% | | Expand and Train Workforce | 11.6 | 1.6 | 13.8% | | Purchase Vehicles | 3.0 | 0.5 | 16.7% | | Establish New Sales Offices | 10.0 | – | 0.0% | | Repay Part of Bank Loans | 10.0 | 10.0 | 100.0% | | Provide Resources for Performance Guarantees | 2.0 | – | 0.0% | | Obtain Higher Grade Work | 2.5 | – | 0.0% | | General Working Capital | 3.5 | 3.5 | 100.0% | | **Total** | **44.0** | **15.7** | **35.7%** | - Some plans, such as purchasing trucks, establishing new sales offices, and providing performance guarantees, were postponed due to current project requirements and industry observations[90](index=90&type=chunk)[93](index=93&type=chunk) [Disclosure of Interests and Other Information](index=31&type=section&id=Disclosure%20of%20Interests%20and%20Other%20Information) This section details the shareholding structure of the company's directors, chief executives, and substantial shareholders, along with compliance and governance matters [Disclosure of Interests](index=31&type=section&id=Disclosure%20of%20Interests) This section discloses the shareholdings of the company's directors, chief executives, and substantial shareholders as of March 31, 2019, with controlling shareholders Mr. Mong King Yiu and Ms. Chong Siew Lan jointly holding 50.96% through Express Ventures | Shareholder Name | Capacity/Nature | Number of Shares Held | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Mong King Yiu | Interest in controlled corporation; jointly held with another person | 407,700,000 | 50.96% | | Ms. Chong Siew Lan | Interest in controlled corporation; jointly held with another person | 407,700,000 | 50.96% | | Express Ventures | Beneficial owner | 407,700,000 | 50.96% | [Compliance and Corporate Governance](index=35&type=section&id=Compliance%20and%20Corporate%20Governance) The company confirmed compliance with GEM Listing Rules during the reporting period, including directors' securities dealing code, maintaining sufficient public float, and corporate governance code, with an audit committee established to review the unaudited quarterly results - All Directors confirmed compliance with the required dealing standards and code of conduct during the reporting period[115](index=115&type=chunk) - The Company maintained a sufficient public float as stipulated by the **GEM Listing Rules**[117](index=117&type=chunk) - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the reporting period[122](index=122&type=chunk) - The Company has established an **Audit Committee** comprising three independent non-executive Directors, which has reviewed the unaudited third-quarter results for the reporting period[127](index=127&type=chunk)[131](index=131&type=chunk)

Financial Performance - Revenue for the three months ended December 31, 2018, was SGD 2,527,668, an increase of 21% compared to SGD 2,091,568 for the same period in 2017[27]. - Gross profit for the six months ended December 31, 2018, was SGD 1,393,816, representing a decrease of 21% from SGD 1,766,796 in the same period of 2017[27]. - The company reported a profit attributable to owners of the company of SGD 37,041 for the three months ended December 31, 2018, compared to a loss of SGD 926,375 in the same period of 2017[27]. - Total revenue for the six months ended December 31, 2018, was SGD 4,150,559, a decrease of 15% compared to SGD 4,882,235 for the same period in 2017[69]. - The group reported a net loss of SGD 9,156 for the six months ended December 31, 2018, compared to a loss of SGD 2,505,741 in the same period of 2017[74]. - The company reported a net profit of approximately SGD 64,000 for the six months ended December 31, 2018, compared to a net loss of approximately SGD 1.9 million in the same period of 2017[120]. Assets and Liabilities - Total assets as of December 31, 2018, were SGD 17,763,494, down from SGD 19,570,258 as of June 30, 2018[30]. - Current liabilities decreased to SGD 1,376,425 as of December 31, 2018, from SGD 1,454,502 as of June 30, 2018[32]. - The company’s total liabilities as of December 31, 2018, were SGD 2,996,160, an increase from SGD 2,279,349 as of June 30, 2018, indicating a growth of approximately 31.5%[96]. - The company’s total equity as of December 31, 2018, was SGD 14,738,804, slightly up from SGD 14,674,243 as of June 30, 2018[32]. Cash Flow and Expenses - The company’s cash and cash equivalents were SGD 8,640,204 as of December 31, 2018, down from SGD 11,187,116 as of June 30, 2018[30]. - Cash used in operating activities for the six months ended December 31, 2018, was SGD (737,578), compared to SGD (1,844,334) for the same period in 2017, indicating improved cash flow management[43]. - Administrative expenses increased to SGD 1,348,327 for the six months ended December 31, 2018, compared to SGD 1,010,160 in the same period of 2017[27]. - The cost of materials recognized as cost of sales/service was SGD 1,169,509 for the six months ended December 31, 2018, up from SGD 799,418 in the same period of 2017, representing a growth of about 46.3%[82]. Earnings and Shareholder Information - The company’s earnings per share for the six months ended December 31, 2018, was SGD 0.01, compared to a loss per share of SGD 0.31 for the same period in 2017[27]. - The basic and diluted earnings per share for the three months ended December 31, 2018, was SGD 0.005, a recovery from a loss of SGD 0.15 in the same period of 2017[87]. - The company did not recommend or pay any dividends for the six months ended December 31, 2018, consistent with the same period in 2017[90]. Market and Operational Insights - The company continues to focus on expanding its operations in the audio and communication systems market in Singapore, aiming to enhance service offerings and customer reach[49]. - The company is actively seeking opportunities to expand its customer base and market share in the audio and communication systems sector[121]. - The company plans to enhance marketing efforts in the Singapore audio and communications industry, with an allocation of HKD 1.4 million, of which 7.1% has been utilized[138]. Governance and Compliance - The company has adopted the corporate governance code as per GEM Listing Rules and has generally complied with it during the reporting period[186]. - The Audit Committee, established on December 14, 2017, consists of three independent non-executive directors and is responsible for reviewing the group's financial controls and risk management systems[188]. - The interim results for the period ending December 31, 2018, were not audited by the independent auditor but were reviewed by the Audit Committee members[188].