Financial Performance - For the six months ended December 31, 2021, ISP Global Limited reported total revenue of SGD 12,010,945, a significant increase of 162% compared to SGD 4,581,675 for the same period in 2020[5] - The gross profit for the six months ended December 31, 2021, was SGD 3,236,174, representing a 128% increase from SGD 1,418,331 in the previous year[5] - The company incurred a loss before tax of SGD 846,704 for the six months ended December 31, 2021, compared to a loss of SGD 32,972 for the same period in 2020[5] - The total comprehensive loss for the six months ended December 31, 2021, was SGD 838,761, compared to a profit of SGD 17,762 in the same period of 2020[8] - The company reported a basic and diluted loss per share of SGD (0.09) for the six months ended December 31, 2021, compared to SGD (0.01) for the same period in 2020[21] - The company recognized other income of SGD 63,911 for the six months ended December 31, 2021, a decrease from SGD 248,436 in the same period of 2020[5] - The company reported a pre-tax loss from operating activities of SGD (846,704) for the six months ended December 31, 2021, compared to a loss of SGD (35,383) in the previous period[126] - The company reported a net cash outflow from operating activities of SGD (3,658,682) for the six months ended December 31, 2021[126] Assets and Liabilities - As of December 31, 2021, total assets amounted to SGD 31,695,152, an increase from SGD 26,295,493 as of June 30, 2021[24] - As of December 31, 2021, total liabilities and equity amounted to SGD 31,695,152, an increase from SGD 26,295,493 as of June 30, 2021, representing a growth of approximately 20.5%[27] - Current liabilities decreased to SGD 6,346,576 from SGD 8,995,318, a reduction of about 29.3%[27] - Non-current liabilities totaled SGD 2,315,773, down from SGD 2,733,455, indicating a decrease of approximately 15.3%[27] - Total equity increased significantly to SGD 23,032,803 from SGD 14,566,720, reflecting a growth of around 58.3%[27] - Total liabilities decreased to SGD 8,662,349 as of December 31, 2021, from SGD 11,728,773 as of June 30, 2021, indicating a reduction of about 26.5%[166] Cash Flow and Investments - The company’s cash and cash equivalents stood at SGD 11,931,540 as of December 31, 2021, compared to SGD 11,176,664 on June 30, 2021[24] - The net cash used in investing activities was SGD 12,612 for the six months ended December 31, 2021, compared to SGD 236,912 in the same period of 2020, indicating a significant reduction in investment outflows[129] - The net cash generated from financing activities was SGD 4,581,410 for the six months ended December 31, 2021, compared to a cash outflow of SGD 94,080 in the same period of 2020, reflecting a strong financing position[129] - The total cash and cash equivalents increased by SGD 910,116, reaching SGD 11,931,540 at the end of the reporting period, compared to SGD 9,843,971 at the end of 2020[129] Operational Costs - The administrative expenses for the six months ended December 31, 2021, were SGD 3,824,858, up from SGD 1,450,612 in the previous year, indicating increased operational costs[5] - The total employee costs for the six months ended December 31, 2021, reached SGD 2,993,907, compared to SGD 1,389,589 in the same period of 2020, reflecting a growth of 115.5%[188] - For the three months ended December 31, 2021, the total employee costs (including directors' remuneration) amounted to SGD 1,615,167, a significant increase from SGD 766,400 in the same period of 2020, representing a growth of 110.5%[188] - The cost of materials recognized as cost of sales/services was SGD 4,835,985 for the three months ended December 31, 2021, compared to SGD 2,150,627 in the same period of 2020, reflecting an increase of 124.8%[188] - The total cost of sales/services for the six months ended December 31, 2021, was SGD 7,773,347, compared to SGD 2,279,495 in the same period of 2020, indicating a substantial increase of 240.5%[188] Market and Business Segments - The company operates two main business segments: Network and Communication Systems Sales and Services, and Consumer Goods Sales, focusing on different market risks and returns[145] - The company aims to expand its market presence and enhance product offerings, focusing on new technologies and services in the network and communication sectors[153] - The sales from the network and communication systems amounted to SGD 4,255,678 for the three months ended December 31, 2021, compared to zero in the same period of 2020, showing a strong market entry[153] - The company reported a significant contribution from major customers, with Customer I contributing SGD 2,532,353 and Customer II contributing SGD 1,560,672 for the six months ended December 31, 2021[158] Taxation - The income tax expense for Singapore corporate tax was SGD 106,253 for the three months ended December 31, 2021, compared to SGD 21,714 in the same period of 2020, which is an increase of 388.5%[194] - The current tax expense for China corporate tax was SGD 974 for the six months ended December 31, 2021, compared to SGD 5,836 in the same period of 2020, indicating a decrease of 83.3%[194] - The deferred tax for the six months ended December 31, 2021, was a recovery of SGD 785, compared to a recovery of SGD 27,829 in the same period of 2020[194] Currency and Financial Reporting - The impact of foreign currency exchange on cash balances was a decrease of SGD 155,240, reflecting currency volatility[129] - The company reported no significant changes in the application of International Financial Reporting Standards that would materially impact the financial statements upon adoption[139] - The company has not applied any new or revised International Financial Reporting Standards that are not yet effective, indicating a stable accounting framework[139] - The company’s operational headquarters is located in Hong Kong, with significant business activities in Singapore and China, indicating a strategic geographical presence[132]

[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) This statement presents the group's financial performance, showing a significant increase in revenue but also a substantial rise in losses for the three months ended September 30, 2021 Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the three months ended September 30) | Indicator | 2021 (SGD) | 2020 (SGD) | Change (SGD) | Change Rate | | :------------- | :---------------- | :---------------- | :-------------- | :----- | | Revenue | 4,779,288 | 1,049,173 | 3,730,115 | 355.5% | | Cost of Sales/Services | (3,427,417) | (548,805) | (2,878,612) | 524.5% | | Gross Profit | 1,351,871 | 500,368 | 851,503 | 170.2% | | Other Income | 37,608 | 118,856 | (81,248) | -68.4% | | Administrative Expenses | (1,704,645) | (593,718) | (1,110,927) | 187.1% | | Other Gains and Losses | (184,947) | (172,298) | (12,649) | 7.3% | | Finance Costs | (32,633) | (6,662) | (25,971) | 389.8% | | Loss Before Tax | (532,746) | (153,454) | (379,292) | 247.2% | | Income Tax (Expense) Recovery | (43,931) | 57,901 | (101,832) | -175.9% | | Loss for the Period | (576,677) | (95,553) | (481,124) | 503.5% | | Basic and Diluted Loss Per Share (SGD cents) | (0.06) | (0.01) | (0.05) | 500.0% | [Unaudited Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement details changes in the group's equity components, including share capital, reserves, and accumulated profits, for the three months ended September 30, 2021 Summary of Condensed Consolidated Statement of Changes in Equity (For the three months ended September 30, 2021) | Item | Share Capital (SGD) | Share Premium (SGD) | Merger Reserve (SGD) | Exchange Reserve (SGD) | Accumulated Profits (SGD) | Total Attributable to Owners of the Company (SGD) | Non-controlling Interests (SGD) | Total (SGD) | | :--------------- | :-------------- | :------------------ | :------------------ | :------------------ | :------------------ | :------------------------------ | :-------------------- | :-------------- | | Balance as at July 1, 2021 | 1,372,630 | 8,593,078 | 524,983 | (2,215) | 3,969,296 | 14,457,772 | 108,948 | 14,566,720 | | Loss for the Period | - | - | - | - | (494,333) | (494,333) | (82,344) | (576,677) | | Other Comprehensive Income for the Period | - | - | - | 25,572 | - | 25,572 | 592 | 26,164 | | Issue of New Shares | 140,752 | 9,079,208 | - | - | - | 9,219,960 | - | 9,219,960 | | Non-controlling Interests | - | - | - | - | - | - | 84,144 | 84,144 | | Balance as at September 30, 2021 | 1,513,382 | 17,672,286 | 524,983 | 23,357 | 3,474,963 | 23,208,971 | 111,340 | 23,320,311 | [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 and disclosures supporting the unaudited condensed consolidated financial statements [1. General Information](index=9&type=section&id=1.%20General%20Information) ISP Global Limited, listed on GEM, operates in Singapore (audio/communication systems, alarm services) and China (e-commerce for consumer goods), with financial statements presented in SGD - ISP Global Limited was incorporated in the Cayman Islands on July 21, 2017, and listed on GEM of the Hong Kong Stock Exchange on January 16, 2018[83](index=83&type=chunk) - The Company is an investment holding company, with operating subsidiaries primarily engaged in sales and related services of audio and communication systems, integrated audio and communication system services, alarm system services in Singapore, and e-commerce services and operations for selling consumer goods to external customers in China[83](index=83&type=chunk) - The unaudited condensed consolidated financial statements are presented in Singapore Dollars (the Company's functional currency) and were approved by the Board of Directors on October 25, 2021[85](index=85&type=chunk) [2. Basis of Preparation and Application of International Financial Reporting Standards ("IFRS")](index=10&type=section&id=2.%20Basis%20of%20Preparation%20and%20Application%20of%20International%20Financial%20Reporting%20Standards%20%28%22IFRS%22%29) The group consistently applied IFRS effective for the fiscal year beginning July 1, 2021, with no significant impact expected from new standards yet to be adopted - The Group has consistently applied IFRS effective for the financial year commencing July 1, 2021, throughout the reporting period[86](index=86&type=chunk) - Management expects that the future adoption of new and revised IFRS, which have been issued but are not yet effective, will not have a significant impact on the Group's financial statements in the period of initial application[110](index=110&type=chunk) [3. Revenue and Segment Information](index=12&type=section&id=3.%20Revenue%20and%20Segment%20Information) The group's revenue primarily stems from audio and communication systems and consumer goods sales, with total revenue reaching **SGD 4.78 million**, driven by significant growth in China's consumer goods segment - The Group's revenue is derived from sales and related services of audio and communication systems, integrated audio and communication system services, alarm system services, and e-commerce services and operations for selling consumer goods[112](index=112&type=chunk) - The Group has two operating segments: sales and services of audio and communication systems, and sales of consumer goods[114](index=114&type=chunk) Segment Revenue and Results (For the three months ended September 30, 2021) | Segment | Revenue (SGD) | Results (SGD) | | :----------------- | :-------------- | :-------------- | | Audio and Communication System Sales and Services | 1,846,468 | 352,466 | | Consumer Product Sales | 2,932,820 | (114,399) | | **Total** | **4,779,288** | **238,067** | Revenue by Geographical Location (For the three months ended September 30) | Region | 2021 Revenue (SGD) | 2020 Revenue (SGD) | | :----- | :-------------------- | :-------------------- | | Singapore | 1,845,474 | 1,049,173 | | China | 2,932,820 | – | | Other | 994 | – | | **Total** | **4,779,288** | **1,049,173** | [4. Other Income and Losses](index=18&type=section&id=4.%20Other%20Income%20and%20Losses) The group recorded a net other loss of **SGD 0.18 million** for the three months ended September 30, 2021, primarily due to net exchange losses and impairment losses on trade receivables Details of Other Income and Losses (For the three months ended September 30) | Item | 2021 (SGD) | 2020 (SGD) | | :------------------------- | :---------------- | :---------------- | | Net Exchange Losses | (104,485) | (99,897) | | Impairment Loss on Trade Receivables | (78,823) | (72,401) | | Impairment Loss on Write-off of Property, Plant and Equipment | (1,639) | – | | **Total** | **(184,947)** | **(172,298)** | [5. Finance Costs](index=18&type=section&id=5.%20Finance%20Costs) Finance costs significantly increased to **SGD 32,633** for the three months ended September 30, 2021, primarily driven by higher interest on lease liabilities Details of Finance Costs (For the three months ended September 30) | Item | 2021 (SGD) | 2020 (SGD) | | :----------- | :---------------- | :---------------- | | Bank Loan Interest | 5,175 | 6,662 | | Lease Liabilities Interest | 27,458 | – | | **Total** | **32,633** | **6,662** | [6. Loss Before Tax](index=19&type=section&id=6.%20Loss%20Before%20Tax) Loss before tax expanded to **SGD 0.53 million** for the three months ended September 30, 2021, mainly due to increased staff costs, material costs, and depreciation expenses Components of Loss Before Tax (For the three months ended September 30) | Item | 2021 (SGD) | 2020 (SGD) | | :------------------------- | :---------------- | :---------------- | | Total Staff Costs (including Directors' Emoluments) | 1,378,740 | 623,189 | | Material Costs | 2,937,362 | 128,868 | | Subcontractor Costs | 115,027 | 44,360 | | Depreciation of Property, Plant and Equipment | 211,643 | 132,669 | - Staff costs included in cost of sales/services amounted to **SGD 375,028** (2020: SGD 276,503)[145](index=145&type=chunk) [7. Income Tax Expense (Recovery)](index=20&type=section&id=7.%20Income%20Tax%20Expense%20%28Recovery%29) The group recorded an income tax expense of **SGD 43,931** for the three months ended September 30, 2021, a shift from a recovery in the prior year, primarily due to increased Singapore corporate income tax and new China corporate income tax Details of Income Tax Expense (Recovery) (For the three months ended September 30) | Item | 2021 (SGD) | 2020 (SGD) | | :------------------- | :---------------- | :---------------- | | Singapore Corporate Income Tax Expense (Recovery) | 42,583 | (43,880) | | China Corporate Income Tax | 966 | – | | Deferred Tax Provision (Utilisation) | 382 | (14,021) | | **Total** | **43,931** | **(57,901)** | - Singapore corporate income tax is provided at **17%**[146](index=146&type=chunk) [8. Loss Per Share](index=21&type=section&id=8.%20Loss%20Per%20Share) Basic and diluted loss per share attributable to owners expanded to **SGD 0.06 cents** for the three months ended September 30, 2021, with no dilutive securities Loss Per Share (For the three months ended September 30) | Indicator | 2021 (SGD) | 2020 (SGD) | | :------------------- | :---------------- | :---------------- | | Loss Attributable to Owners of the Company | (574,577) | (95,553) | | Weighted Average Number of Ordinary Shares | 863,478,261 | 800,000,000 | | Basic and Diluted Loss Per Share (SGD cents) | (0.06) | (0.01) | - Basic earnings per share is calculated based on the loss for the period attributable to owners of the Company and the weighted average number of ordinary shares outstanding[154](index=154&type=chunk) - Diluted earnings per share is equal to basic earnings per share as the Group had no dilutive potential ordinary shares during the period and for the three months ended September 30, 2020[154](index=154&type=chunk) [9. Dividends](index=21&type=section&id=9.%20Dividends) No dividends were proposed or paid by the company or its subsidiaries for the three months ended September 30, 2021 - No dividends were proposed or paid by the Company or any of its subsidiaries during the period (for the three months ended September 30, 2020: zero Singapore Dollars)[155](index=155&type=chunk) [Management Discussion and Analysis](index=22&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the group's business development, financial performance, and future outlook, highlighting key operational and financial changes [Business Development and Prospects](index=22&type=section&id=Business%20Development%20and%20Prospects) The group's net loss expanded due to increased administrative and capital costs in the China e-commerce segment, with future plans to consolidate Singapore operations and pursue high growth in China's e-commerce and network system integration - The Group is primarily engaged in the sales, installation, and maintenance of audio and communication system solutions and alarm systems in Singapore, and e-commerce services and operations for selling consumer goods in China[158](index=158&type=chunk) - During the period, the Group recorded a net loss of approximately **SGD 576,700**, compared to a net loss of approximately **SGD 95,600** in the corresponding period of 2020, mainly due to increased staff administrative costs and capital-related expenses for business opportunities in the China e-commerce segment[158](index=158&type=chunk) [Outlook](index=22&type=section&id=Outlook) The group plans to strengthen its Singapore business in public healthcare and housing, while pursuing high growth in China's e-commerce and network system integration sectors - Singapore operations will focus on public tenders and maintaining new contracts, targeting the public healthcare and housing sectors, with sales and installation deliveries for existing contract projects expected to gradually resume as COVID-19 is treated as an endemic disease[159](index=159&type=chunk)[161](index=161&type=chunk) - China's e-commerce business will seek high growth, expanding partnerships with Nordic and Western European brands based on principles of 'health, value, quality, and sustainability,' opening stores on mainstream e-commerce platforms like JD, Tmall, Pinduoduo, and Douyin, and focusing on building private domain e-commerce operations[162](index=162&type=chunk)[165](index=165&type=chunk) - China's network system integration and core IT service system will provide solutions to government departments, financial institutions, and state-owned enterprises like railway and aviation, with plans to strengthen team building, expand service systems, develop industry clients, and enhance cooperation with industry resources, ultimately forming a comprehensive system integration service provider centered on IT services[169](index=169&type=chunk)[172](index=172&type=chunk) [Financial Review](index=27&type=section&id=Financial%20Review) This section reviews key financial indicators, including significant revenue growth driven by China's e-commerce and Singapore's construction, alongside increased costs and expanded losses [Revenue](index=27&type=section&id=Revenue) Revenue increased **3.6 times** to approximately **SGD 4.8 million**, driven by new e-commerce services in China and increased audio and communication system projects in Singapore - Revenue increased **3.6 times** from approximately **SGD 1.0 million** to approximately **SGD 4.8 million**[176](index=176&type=chunk) - The primary growth drivers were new revenue streams from China's e-commerce services and an increase in audio and communication system sales and related service projects due to the resumption of construction works in Singapore[176](index=176&type=chunk) [Cost of Sales/Services](index=27&type=section&id=Cost%20of%20Sales%2FServices) Cost of sales/services increased **5.2 times** to approximately **SGD 3.4 million**, primarily due to higher material deliveries for consumer product sales in China - Cost of sales/services increased **5.2 times** from approximately **SGD 0.5 million** to approximately **SGD 3.4 million**[177](index=177&type=chunk) - The increase in costs was mainly attributable to higher material deliveries for the consumer product sales segment to customers in China[177](index=177&type=chunk) [Gross Profit and Gross Margin](index=27&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit increased to approximately **SGD 1.4 million**, but gross margin decreased from **47.7% to 28.3%**, primarily due to lower profitability in the consumer product sales segment - Gross profit increased from approximately **SGD 0.5 million** to approximately **SGD 1.4 million**[178](index=178&type=chunk) - Gross margin decreased from **47.7%** to **28.3%**[178](index=178&type=chunk) - The decrease in gross margin was mainly due to lower profitability in the consumer product sales segment[178](index=178&type=chunk) [Other Income, Gains and Losses](index=28&type=section&id=Other%20Income%2C%20Gains%20and%20Losses) Other income, gains, and losses increased from a loss of approximately **SGD 53,400** to a loss of approximately **SGD 147,300**, mainly due to reduced government subsidies and increased exchange losses - Other income, gains, and losses increased from a loss of approximately **SGD 53,400** to a loss of approximately **SGD 147,300**[181](index=181&type=chunk) - The increase was mainly due to a decrease in Singapore government subsidy income and an increase in exchange losses recognized from transactions settled in USD and HKD[181](index=181&type=chunk) [Administrative Expenses](index=28&type=section&id=Administrative%20Expenses) Administrative expenses increased **1.9 times** to approximately **SGD 1.7 million**, primarily due to higher staff costs from an increased headcount in the consumer product sales segment - Administrative expenses increased **1.9 times** from approximately **SGD 0.6 million** to approximately **SGD 1.7 million**[182](index=182&type=chunk) - The increase was mainly due to higher staff costs resulting from an increased headcount in the consumer product sales segment[182](index=182&type=chunk) [Finance Costs](index=28&type=section&id=Finance%20Costs) Finance costs increased **3.9 times** to approximately **SGD 32,600**, primarily due to lease liabilities associated with the repayment of leased office space - Finance costs increased **3.9 times** from approximately **SGD 6,700** to approximately **SGD 32,600**[183](index=183&type=chunk) - The increase was mainly due to lease liabilities related to the repayment of right-of-use assets for leased office space[183](index=183&type=chunk) [Income Tax Expense (Recovery)](index=29&type=section&id=Income%20Tax%20Expense%20%28Recovery%29) Income tax shifted from a recovery of approximately **SGD 57,900** in 2020 to an expense of approximately **SGD 43,900**, an increase of approximately **SGD 101,800**, due to a reversal of over-provision and higher tax expenses from increased profit before tax - Income tax shifted from a recovery of approximately **SGD 57,900** in the corresponding period of 2020 to an expense of approximately **SGD 43,900** in the reporting period, an increase of approximately **SGD 101,800**[187](index=187&type=chunk) - The change was mainly due to the reversal of over-provision for income tax expense of a Singapore subsidiary in 2020 and an increase in tax expense resulting from higher profit before tax in the reporting period[187](index=187&type=chunk) [Loss for the Period](index=29&type=section&id=Loss%20for%20the%20Period) Loss for the period expanded from approximately **SGD 95,600** to approximately **SGD 576,700**, primarily due to increased administrative and capital costs in the new China e-commerce segment, partially offset by improved performance in audio and communication systems - Loss for the period expanded from approximately **SGD 95,600** to approximately **SGD 576,700**[188](index=188&type=chunk) - The increase in loss was mainly due to increased staff administrative costs and capital expenses for business opportunities in the new China e-commerce segment[188](index=188&type=chunk) - Partially offset by improved performance in the audio and communication system sales and related services segment[188](index=188&type=chunk) [Dividends](index=29&type=section&id=Dividends) The Board of Directors did not recommend the payment of any dividends for the reporting period - The Board of Directors did not recommend the payment of any dividends during the period (for the three months ended September 30, 2020: zero Singapore Dollars)[189](index=189&type=chunk) [Comparison of Use of Proceeds from Listing Shares and Business Objectives with Actual Business Progress](index=30&type=section&id=Comparison%20of%20Use%20of%20Proceeds%20from%20Listing%20Shares%20and%20Business%20Objectives%20with%20Actual%20Business%20Progress) Of the **HKD 44.0 million** net proceeds from listing shares, **HKD 23.4 million** has been utilized, with delays in certain initiatives like marketing and new office setup due to COVID-19, and remaining funds expected to be used by June 30, 2023 - Net proceeds from listing shares were approximately **HKD 44.0 million**; as of September 30, 2021, **HKD 23.4 million** had been utilized, with **HKD 20.6 million** unutilized, representing a utilization rate of **53.2%**[193](index=193&type=chunk) Use of Listing Proceeds and Progress (As of September 30, 2021) | Description | Designated Amount (HKD million) | Actual Use (HKD million) | Unutilized Amount (HKD million) | Utilization Rate | Expected Date of Full Utilization | | :------------------------------------------------ | :-------------------------- | :------------------ | :-------------------- | :--------- | :--------------- | | Strengthening Marketing Efforts in Singapore's Audio and Communication Industry | 1.4 | 0.5 | 0.9 | 35.7% | December 31, 2022 | | Expanding and Training Sales & Marketing, Technical, and Support Personnel | 11.6 | 8.2 | 3.4 | 70.7% | June 30, 2023 | | Purchasing Vehicles | 3.0 | 0.5 | 2.5 | 16.7% | June 30, 2023 | | Establishing New Sales Offices in Singapore | 10.0 | – | 10.0 | 0.0% | June 30, 2022 | | Repaying Part of Bank Loans | 10.0 | 10.0 | Zero | 100.0% | Not Applicable | | Providing Resources for Performance Guarantees | 2.0 | 0.7 | 1.3 | 35.0% | June 30, 2023 | | Obtaining Higher Grades for Mechanical and Electrical Works | 2.5 | – | 2.5 | 0.0% | June 30, 2023 | | General Working Capital and General Corporate Purposes | 3.5 | 3.5 | Zero | 100.0% | Not Applicable | | **Total** | **44.0** | **23.4** | **20.6** | **53.2%** | | - The delay in using the proceeds and business expansion has not had any significant adverse impact on the Group's operations, but the Board will continue to closely monitor the impact of the COVID-19 pandemic on the timetable for using the unutilized proceeds[256](index=256&type=chunk) [Comparison of Use of Proceeds from Placing Shares and Business Objectives with Actual Business Progress](index=36&type=section&id=Comparison%20of%20Use%20of%20Proceeds%20from%20Placing%20Shares%20and%20Business%20Objectives%20with%20Actual%20Business%20Progress) Of the **HKD 52.35 million** net proceeds from placing shares, **HKD 31.16 million** has been utilized, primarily for inventory and equipment for China's e-commerce business, with remaining funds expected to be fully used by June 2022 - Net proceeds from placing shares amounted to approximately **HKD 52,347,000**; as of September 30, 2021, **HKD 31,157,510** had been utilized, representing **59.5%** of the total[260](index=260&type=chunk)[261](index=261&type=chunk)[265](index=265&type=chunk) Use of Placing Proceeds and Progress (As of September 30, 2021) | Description | Designated Amount (HKD) | Utilized Amount (HKD) | Utilization Rate | Expected Date of Full Utilization | | :------------------------------------------------ | :-------------- | :---------------- | :--------- | :--------------- | | Establishing New Teams/Hiring Additional Technicians/Sales Personnel/Operations Personnel to Expand Existing Teams | 18,330,000 | 7,007,384 | 38.2% | June 30, 2022 | | Purchasing Inventory | 10,474,000 | 10,054,507 | 96.0% | November 30, 2021 | | Purchasing Machinery and Equipment | 15,711,000 | 9,788,947 | 62.3% | June 30, 2022 | | General Working Capital and General Corporate Purposes | 7,855,000 | 4,306,672 | 54.8% | January 31, 2022 | | **Total** | **52,370,000** | **31,157,510** | **59.5%** | | [Post-Reporting Period Events](index=38&type=section&id=Post-Reporting%20Period%20Events) A joint venture agreement was entered into on October 22, 2021, to provide e-commerce operation services to Chinese brand clients, with no other significant events occurring post-reporting period - On October 22, 2021, Guodu Industrial Limited, a direct wholly-owned subsidiary of the Company, entered into a joint venture agreement with a joint venture partner to establish a joint venture company to engage in the business of providing e-commerce operation services to Chinese brand clients[268](index=268&type=chunk) - Save as disclosed above, no other significant events occurred from the end of the reporting period up to the date of this report[268](index=268&type=chunk) [Disclosure of Interests and Other Information](index=39&type=section&id=Disclosure%20of%20Interests%20and%20Other%20Information) This section details the interests and short positions of directors, chief executives, and substantial shareholders in the company's securities, along with other corporate governance information [Interests and/or Short Positions of Directors and Chief Executives in the Shares, Underlying Shares, and Debentures of the Company or any Associated Corporation](index=39&type=section&id=Interests%20and%2For%20Short%20Positions%20of%20Directors%20and%20Chief%20Executives%20in%20the%20Shares%2C%20Underlying%20Shares%2C%20and%20Debentures%20of%20the%20Company%20or%20any%20Associated%20Corporation) As of September 30, 2021, Mr. Mong King Yiu and Ms. Chong Siew Lan (via Express Ventures) jointly held **13.64%** of the company's shares, while Mr. Cao Chunmeng beneficially owned **9.11%** Long Positions of Directors and Chief Executives in the Ordinary Shares of the Company (As of September 30, 2021) | Name | Capacity/Nature | Number of Shares | Approximate Percentage | | :--------- | :--------------------- | :---------- | :--------- | | Mr. Mong King Yiu | Interest in controlled corporation; Jointly held interest | 120,000,000 | 13.64% | | Ms. Chong Siew Lan | Interest in controlled corporation; Jointly held interest | 120,000,000 | 13.64% | | Mr. Cao Chunmeng | Beneficial owner | 80,200,000 | 9.11% | Long Positions of Directors and Chief Executives in the Ordinary Shares of Associated Corporation Express Ventures (As of September 30, 2021) | Name | Name of Associated Corporation | Capacity/Nature | Number of Shares Held | Approximate Percentage of Equity | | :--------- | :--------------- | :--------- | :----------------- | :------------- | | Mr. Mong King Yiu | Express Ventures | Beneficial owner | 510 | 97.14% | | Ms. Chong Siew Lan | Express Ventures | Beneficial owner | 15 | 2.86% | [Interests and Short Positions of Substantial Shareholders and Other Persons in the Shares, Underlying Shares, and Debentures of the Company](index=41&type=section&id=Interests%20and%20Short%20Positions%20of%20Substantial%20Shareholders%20and%20Other%20Persons%20in%20the%20Shares%2C%20Underlying%20Shares%2C%20and%20Debentures%20of%20the%20Company) As of September 30, 2021, substantial shareholders included Express Ventures (**13.64%**), Li Chao (**10.65%**), and Lux Aeterna Global Fund SPC (**7.42%**) Long Positions of Substantial Shareholders and Other Persons in the Ordinary Shares of the Company (As of September 30, 2021) | Name/Company Name | Capacity/Nature | Number of Shares | Approximate Percentage of Equity | | :------------------------- | :--------- | :---------- | :------------- | | Express Ventures | Beneficial owner | 120,000,000 | 13.64% | | Li Chao | Beneficial owner | 93,750,000 | 10.65% | | Lux Aeterna Global Fund SPC | Beneficial owner | 65,300,000 | 7.42% | [Code of Conduct for Securities Transactions by Directors](index=42&type=section&id=Code%20of%20Conduct%20for%20Securities%20Transactions%20by%20Directors) The company adopted the GEM Listing Rules' required standard of dealings for directors' securities transactions, with all directors confirming compliance during the reporting period - The Company has adopted the required standard of dealings set out in Rules 5.48 to 5.67 of the GEM Listing Rules as the code of conduct for directors' securities transactions in shares[284](index=284&type=chunk) - Following specific enquiry with all Directors, all Directors have confirmed that they have complied with the required standard of dealings and the code of conduct for directors' securities transactions during the period and up to the date of this report[284](index=284&type=chunk) [No Change in Directors' Information](index=42&type=section&id=No%20Change%20in%20Directors'%20Information) There have been no changes in the directors' information required to be disclosed under Rule 17.50A(1) of the GEM Listing Rules - There have been no changes in the directors' information required to be disclosed under Rule 17.50A(1) of the GEM Listing Rules[285](index=285&type=chunk) [Sufficient Public Float](index=42&type=section&id=Sufficient%20Public%20Float) The directors confirm that the company maintained a sufficient public float for its shares as stipulated by the GEM Listing Rules throughout the reporting period - The Directors confirm that the Company has maintained a sufficient public float for its shares as stipulated by the GEM Listing Rules throughout the relevant period[286](index=286&type=chunk) [Competition and Conflicts of Interest](index=42&type=section&id=Competition%20and%20Conflicts%20of%20Interest) No directors, controlling shareholders, or their close associates engaged in competing businesses or had disclosable conflicts of interest with the group during the reporting period - During the relevant period, none of the Directors, controlling shareholders, or substantial shareholders of the Company or any of their respective close associates engaged in any business that competes or is likely to compete, directly or indirectly, with the Group's business or had any other conflicts of interest with the Group requiring disclosure under Rule 11.04 of the GEM Listing Rules[287](index=287&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=43&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) The Board confirms that neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the reporting period - The Board confirms that neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the relevant period[290](index=290&type=chunk) [Share Option Scheme](index=43&type=section&id=Share%20Option%20Scheme) The company adopted a share option scheme on December 14, 2017, but no share options have been granted under the scheme since its adoption - The Company adopted a share option scheme on December 14, 2017, and no share options have been granted under the scheme since its adoption[291](index=291&type=chunk) [Share Award Scheme](index=43&type=section&id=Share%20Award%20Scheme) The company adopted a share award scheme on February 18, 2021, to recognize contributions and retain talent, with the maximum number of awarded shares not exceeding **1%** of total issued share capital, and no shares purchased or issued under the scheme this year - The Company adopted a share award scheme on February 18, 2021, to recognize contributions, provide incentives to retain talent, and attract suitable individuals[292](index=292&type=chunk) - The maximum number of awarded shares shall not exceed **1%** of the Company's total issued share capital from time to time[292](index=292&type=chunk) - No awarded shares were purchased or issued under the share award scheme during the current year[292](index=292&type=chunk) [Compliance with Corporate Governance Code](index=44&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company has substantially complied with the Corporate Governance Code provisions of Appendix 15 to the GEM Listing Rules since its listing on January 16, 2018 - The Company has adopted the code provisions of the Corporate Governance Code set out in Appendix 15 to the GEM Listing Rules since its listing on January 16, 2018[295](index=295&type=chunk) - The Company has substantially complied with the Corporate Governance Code throughout the relevant period, where applicable[295](index=295&type=chunk) [Audit Committee](index=44&type=section&id=Audit%20Committee) The Audit Committee, established on December 14, 2017, comprises three independent non-executive directors and has reviewed the unaudited quarterly results, fulfilling its duties including advising on auditor appointments and reviewing financial statements - The Company established an Audit Committee on December 14, 2017, with terms of reference in compliance with Rules 5.28 to 5.33 of the GEM Listing Rules[296](index=296&type=chunk) - The primary duties of the Audit Committee include advising on the appointment of external auditors, reviewing the Group's financial statements, annual reports and accounts, half-yearly reports, and quarterly reports, as well as reviewing the Group's financial controls, internal controls, and risk management systems[296](index=296&type=chunk) - The Audit Committee comprises three independent non-executive directors: Mr. Tang Chi Wai (Chairman), Mr. Yan Xiaotian, and Dr. Choi Wing Sum[296](index=296&type=chunk) - The Company's unaudited first quarterly results for the relevant period were reviewed by the members of the Audit Committee, who provided their opinions and recommendations thereon[296](index=296&type=chunk) [Other Information](index=45&type=section&id=Other%20Information) This report uses an illustrative exchange rate of **SGD 1 to HKD 5.85**, was issued by Chairman and Executive Director Mr. Mong King Yiu on October 25, 2021, and is available on the GEM and company websites - Singapore Dollars are converted to Hong Kong Dollars at an exchange rate of **SGD 1 to HKD 5.85** for illustrative purposes only[299](index=299&type=chunk) - This report was issued by Mr. Mong King Yiu, Chairman and Executive Director, on October 25, 2021[299](index=299&type=chunk) - This report will be published on the GEM website www.hkgem.com and the Company's website www.ispg.hk[299](index=299&type=chunk)

ISP Global Limited ISP Global Limited ISP Global Limited (incorporated in the Cayman Islands with limited liability) Stock Code: 8487 Annual Report 2020/21 年報 Annual Report 2020/21 ( 於開曼群島註冊成立的有限公司 ) 股份代號：8487 年 2020/21 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為相比起其他在聯交所上市的公司帶有較高投資風險的中小型公司提供一個上市的市場。有 意投資人士應了解投資於該等公司的潛在風險，並應經過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於聯交所主板買賣的證券承受較大的市場 波動風險，同時無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，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報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。 ...

ISP Global Limited ISP Global Limited (incorporated in the Cayman Islands with limited liability) Stock Code: 8487 Third Quarterly Report 2020/2021 ( 於開曼群島註冊成立的有限公司 ) 股份代號：8487 第三季度報告 2020/2021 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為相比起其他在聯交所上市的公司帶有較高投資風險的中小型公 司提供一個上市的市場。有意投資人士應了解投資於該等公司的潛在風險，並應 經過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於聯交所主板 買賣的證券承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流 通量的市場。 本報告的資料乃遵照聯交所GEM證券上市規則（「GEM上市規則」）而刊載，旨在 提供有關ISP Global Limited（「本公司」）的資料；本公司董事（「董事」）願就本報告 共同及個別地承擔全部責任。各董事在作出一切合理查詢後，確認就 ...

Financial Performance - Revenue for the three months ended December 31, 2020, was SGD 3,532,502, representing a 94.5% increase from SGD 1,815,668 in the same period of 2019[5]. - Gross profit for the six months ended December 31, 2020, was SGD 1,418,331, a slight decrease of 3.8% compared to SGD 1,474,685 for the same period in 2019[5]. - The company reported a net profit of SGD 106,740 for the three months ended December 31, 2020, compared to a net loss of SGD 171,649 in the same period of 2019[5]. - Other income for the six months ended December 31, 2020, was SGD 248,436, significantly higher than SGD 52,456 in the same period of 2019[5]. - The total comprehensive income for the three months ended December 31, 2020, was SGD 114,406, recovering from a loss of SGD 171,597 in the same period of 2019[9]. - The company recorded a net cash inflow from operating activities of SGD 347,798 for the six months ended December 31, 2020, compared to a net outflow of SGD 30,680 for the same period in 2019[40]. - The company recorded a net profit of approximately SGD 58,000 for the six months ended December 31, 2020, compared to approximately SGD 64,000 for the same period in 2019, representing a decrease of about 9.4%[162]. - The group recorded a net loss attributable to owners of approximately SGD 43,000 for the period, compared to a profit of about SGD 58,000 in the same period of 2019, primarily due to increased administrative costs and reduced gross profit in the audio and communication systems segment[186]. Assets and Liabilities - Total assets increased to SGD 22,557,368 as of December 31, 2020, up from SGD 17,251,173 as of June 30, 2020[24]. - Current liabilities totaled SGD 6,346,524, significantly higher than SGD 1,051,057 reported on June 30, 2020, indicating a substantial increase in short-term obligations[26]. - The total equity as of December 31, 2020, was SGD 15,023,789, up from SGD 14,906,471 as of June 30, 2020, showing a modest increase of approximately 0.8%[26]. - The company’s trade and other payables increased to SGD 5,946,866 as of December 31, 2020, compared to SGD 548,673 as of June 30, 2020, indicating a significant rise in liabilities[26]. - The group’s trade payables were SGD 5,691,042 as of December 31, 2020, significantly higher than SGD 91,311 as of June 30, 2020[118]. - The company’s cash and cash equivalents stood at SGD 9,843,971 as of December 31, 2020, down from SGD 10,022,877 as of June 30, 2020[24]. Revenue Breakdown - Total revenue for the six months ended December 31, 2020, was SGD 4,581,675, representing an increase of 16.7% compared to SGD 3,925,884 for the same period in 2019[50]. - Revenue from audio and communication system sales and related services was SGD 1,846,451 for the six months ended December 31, 2020, compared to SGD 2,954,620 in the same period of 2019, indicating a decline of 37.5%[50]. - E-commerce revenue reached SGD 2,187,452 for the six months ended December 31, 2020, with no revenue reported in the same period of 2019, marking a significant growth[50]. - Revenue from alarm system services remained stable at SGD 437,772 for both the six months ended December 31, 2020, and 2019[50]. - Revenue from external customers in Singapore decreased to SGD 2,394,223 for the year 2020 from SGD 3,925,884 in 2019, a decline of 39.1%[56]. Expenses and Costs - Administrative expenses increased to SGD 1,450,612 for the six months ended December 31, 2020, compared to SGD 1,366,800 for the same period in 2019[5]. - Total employee costs, including directors' remuneration, amounted to 766,400 SGD, down from 897,277 SGD year-on-year, representing a decrease of approximately 14.6%[72]. - The total cost of materials recognized as cost of sales/services was 2,150,627 SGD, a significant increase from 485,385 SGD year-on-year[71]. - Administrative costs related to the new e-commerce division in China increased from approximately SGD 1.4 million to about SGD 1.5 million, an increase of approximately SGD 84,000 or 6.1%[162]. Cash Flow and Investments - The company’s cash flow from investing activities showed a net outflow of SGD 236,912 for the six months ended December 31, 2020, compared to SGD 25,692 in the previous period, indicating increased investment activity[40]. - The company acquired equipment worth approximately 48,342 SGD during the reporting period, compared to 25,692 SGD in the same period last year[81]. - The company has utilized HKD 10.0 million to repay part of its bank loans, achieving a 100.0% utilization rate[189]. Market and Strategic Initiatives - The company is focused on expanding its e-commerce services, which have shown significant growth potential in the current market[50]. - The company is exploring new opportunities in the online retail space, particularly in response to changing consumer habits during the COVID-19 pandemic[168]. - The company plans to diversify its service offerings to include e-commerce brands attractive to Chinese consumers[169]. - The company is continuously assessing the feasibility of business expansion opportunities in China and Southeast Asia[165]. - The company has implemented emergency plans and optimized its cost structure to maintain customer relationships during the pandemic[165]. - The company aims to enhance operational efficiency and profitability amid the challenges posed by the COVID-19 pandemic[163]. Compliance and Reporting - The company has been applying the International Financial Reporting Standards since the fiscal year starting July 1, 2020[46]. - The effective tax rate for Singapore corporate tax was maintained at 17%[74]. - The company recorded a deferred tax expense of (13,808) SGD for the three months ended December 31, 2020, compared to (18,109) SGD in the same period last year[74].

Financial Performance - For the three months ended September 30, 2020, ISP Global Limited reported revenue of SGD 1,049,173, a decrease of 50.3% compared to SGD 2,110,216 for the same period in 2019[6]. - The gross profit for the same period was SGD 500,368, down 29.5% from SGD 709,631 in the previous year[6]. - The company recorded a loss before tax of SGD 153,454, compared to a profit of SGD 235,597 in the prior year[6]. - The net loss for the period was SGD 95,553, a significant decline from a profit of SGD 229,671 in the same quarter of 2019[6]. - The total comprehensive loss for the period was SGD 96,644, contrasting with a total comprehensive income of SGD 229,634 in the prior year[8]. - Basic and diluted loss per share was SGD (0.01), compared to earnings per share of SGD 0.03 in the same quarter of 2019[8]. - The company reported a net loss of approximately SGD 95,600 for the period ending September 30, 2020, compared to a net profit of approximately SGD 229,700 in the same period of 2019[47]. - Revenue from sales of audio and communication systems and related services was SGD 720,287, a decrease of 57.0% from SGD 1,676,268 in the same period of 2019[27]. - Total revenue for the period was SGD 1,049,173, down 50.3% from SGD 2,110,216 in the same period of 2019[27]. - The company incurred a total employee cost of SGD 623,189, down 26.2% from SGD 845,013 in the same period of 2019[34]. - The company recorded a net foreign exchange loss of SGD 99,896 for the period, compared to a gain of SGD 97,206 in the same period of 2019[30]. - Other income and losses resulted in a loss of approximately SGD 53,400, a decrease of about SGD 186,000, mainly due to foreign exchange losses from currencies like USD and HKD depreciating against SGD[56]. - Administrative expenses slightly decreased by SGD 3,700 or 0.6% to about SGD 593,700, primarily due to reduced labor costs[57]. - Financial costs decreased by approximately SGD 2,600 or 28.0% to about SGD 6,700, mainly due to repayment of mortgage principal[58]. - The company recorded a net loss of approximately SGD 95,600 for the period, compared to a profit of about SGD 229,700 for the previous period, attributed to decreased sales and significant foreign exchange losses[61]. - The company has no proposed or paid dividends during the period, consistent with the previous year[45]. - No dividends were recommended during the period, consistent with the previous period[62]. Business Operations - The company continues to focus on its core business of selling audio and communication systems and providing related services[21]. - The company plans to strengthen its team by hiring technical experts to provide innovative integrated system solutions[48]. - The company has received more maintenance and service contracts for audio and communication system solutions in recent years, despite a contraction in the construction industry in Singapore[48]. - The company plans to gradually resume project site sales and installation deliveries in accordance with existing social distancing measures and regulations during the economic recovery phase post-COVID-19[48]. - Revenue decreased by approximately SGD 1.1 million or 50.3% to about SGD 1.0 million for the period ending September 30, 2019, primarily due to project delays in the audio and communication systems sector[52]. - Cost of sales/service reduced by approximately SGD 0.9 million or 60.8% to about SGD 0.5 million, aligning with the decrease in revenue[53]. - Gross profit decreased from approximately SGD 0.7 million to about SGD 0.5 million, while gross margin increased from 33.7% to 47.7% due to higher actual construction revenue from a specific project[54]. - The company remains cautiously optimistic about business expansion opportunities in Singapore and the Asia-Pacific region[50]. - The company plans to enhance marketing efforts in the audio and communication industry in Singapore, with a budget of SGD 1.4 million, of which 28.6% has been utilized[69]. - The company plans to strengthen its marketing efforts in Singapore's audio and communication industry, including the development of branded marketing materials and participation in industry exhibitions[93]. - The company aims to expand its sales and technical support staff, with plans to hire approximately 8 technicians by June 2018 and additional engineers and sales managers by June 2019[93]. - The company is exploring new comprehensive service projects in Singapore's audio and communication systems, particularly larger projects that may require performance guarantees[99]. - The company continues to receive invitations for tenders and project awards, indicating ongoing business opportunities despite market challenges[102]. Corporate Governance - The financial statements were approved by the board of directors on November 6, 2020, indicating ongoing governance and oversight[21]. - The company confirms that it has maintained sufficient public float as per GEM listing rules during the reporting period[124]. - There were no purchases, sales, or redemptions of the company's listed securities by the company or its subsidiaries during the reporting period[126]. - The company adopted a share option scheme on December 14, 2017, but no options have been granted under this scheme since its adoption[127]. - The audit committee, established on December 14, 2017, is responsible for reviewing financial statements and internal controls[131]. - The company has complied with the corporate governance code since its listing on January 16, 2018[130]. - The first quarter results for the period have not been audited by independent auditors but have been reviewed by the audit committee members[133]. Shareholder Information - Mr. Mong and Ms. Chuang each hold 404,000,000 shares in Express Ventures, representing 50.50% of the total equity[112]. - Mr. Mong has a beneficial ownership of 97.14% in Express Ventures, while Ms. Chuang holds 2.86%[115]. - As of September 30, 2020, Mr. Tsai Lin-Chou holds 41,400,000 shares, accounting for 5.18% of the equity[118]. Currency and Exchange Rates - The exchange rate used for conversion is 1 Singapore Dollar to 5.85 Hong Kong Dollars[133].

Financial Performance - The group experienced a revenue decline of 22.3% due to intensified competition and economic disruptions caused by COVID-19, with the construction industry in Singapore contracting by 59.3% compared to the previous year[11]. - The company reported a significant increase in revenue, achieving a total of $X million for the fiscal year, representing a Y% growth compared to the previous year[18]. - Revenue from sales and related services of audio and communication systems decreased to approximately SGD 5.1 million, accounting for about 76.2% of total revenue, down from SGD 6.4 million or 74.6% in the previous year[38]. - The company recorded revenue of approximately SGD 6.7 million for the fiscal year ending June 30, 2020, a decrease of SGD 1.9 million or 22.2% from SGD 8.6 million in the previous year[42]. - The company provided guidance for the next quarter, expecting revenue to be between $A million and $B million, indicating a growth rate of C%[18]. - New product launches are anticipated to contribute an additional $D million in revenue, with a focus on expanding the product line in the upcoming year[18]. Operational Efficiency - The company is investing in new technology development, allocating $E million towards R&D initiatives aimed at enhancing operational efficiency[18]. - The company has reported a decrease in operational costs by J%, attributed to improved supply chain management[18]. - Administrative expenses decreased by approximately SGD 0.2 million or 6.3% to about SGD 2.5 million, primarily due to a reduction in labor costs from a decrease in employee numbers[46]. - The company implemented cost-saving measures during the COVID-19 outbreak, leading to a reduction in administrative expenses[52]. Market Strategy and Expansion - The company plans to strengthen its team by hiring engineers to provide innovative integrated system solutions, aiming to maintain direct stakeholder relationships in the healthcare and education sectors[12]. - Market expansion plans include entering F new regions, which are projected to increase market share by G% over the next two years[18]. - The company is considering strategic acquisitions to bolster its market position, with potential targets identified in the H sector[18]. - A new marketing strategy has been implemented, aiming to increase brand awareness and customer engagement by I%[18]. Sustainability and Environmental Impact - The management team emphasized a commitment to sustainability, with plans to reduce carbon emissions by K% over the next five years[18]. - The company reported a significant reduction in CO2 emissions from business travel, decreasing from 12.96 tons in the previous year to 2.16 tons this year, a reduction of approximately 83.3%[104]. - The total greenhouse gas emissions from mobile combustion sources decreased from 9.55 tons to 7.54 tons, representing a reduction of about 20.9%[104]. - The company has implemented measures to improve energy efficiency, including automatic shutdown settings for idle computers and printers[109]. - The company has prioritized the purchase of environmentally friendly vehicles, focusing on fuel efficiency and regular maintenance[101]. - The company has adopted a waste management strategy emphasizing reduction, reuse, and recycling, although the amount of non-hazardous waste generated remains minimal[105]. Human Resources and Employee Engagement - The employee count decreased to 59 as of June 30, 2020, from 71 in 2019, indicating a reduction in workforce[70]. - Employee compensation policies are regularly reviewed to ensure competitive remuneration, including salaries, commissions, bonuses, and other benefits[115]. - The company encourages employee participation in professional development and training programs to enhance skills and team performance[127]. - All employees are required to undergo regular performance and career development assessments to motivate training and self-improvement[127]. - The annual employee turnover rate for the company was approximately 19%, with 22% of departing employees being male and 8% female[121]. Corporate Governance - The board consists of seven members, including three executive directors and four independent non-executive directors, ensuring a balanced composition for independent judgment[194]. - The company has adopted corporate governance practices in compliance with GEM Listing Rules, enhancing accountability and transparency to protect shareholders' interests[187]. - Independent non-executive directors account for more than one-third of the board, bringing extensive business and financial expertise[196]. - The company has confirmed compliance with the corporate governance code during the reporting period, ensuring adherence to established standards[187]. - The board meets at least four times a year, approximately once per quarter, to ensure effective oversight[189].

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]