Financial Performance and Revenue Sources - Over 80% of the company's revenue was derived from customers in Singapore during the financial years ended May 31, 2024 and 2023, indicating a strong reliance on the local market[11]. - More than 70% of the company's revenue during the financial years ended May 31, 2024 and 2023 came from the sale of reconditioned and new containers, making it sensitive to fluctuations in steel prices[13]. - Revenue from the sale of reconditioned and new containers accounted for approximately 30% and 31.6% of total revenue for the financial years ended May 31, 2024, and 2023, respectively[19]. - Sales to the largest customer amounted to approximately 1.3millionand1.8 million for the financial years ended May 31, 2024, and 2023, respectively, representing about 14.2% and 16.4% of total revenue[19]. - Average accounts receivable turnover days were approximately 66 days and 78 days for the financial years ended May 31, 2024, and 2023, respectively[21]. Operational Risks and Challenges - The company had inventories of approximately 0.3millionasofMay31,2024and2023,highlightingpotentialrisksrelatedtoinventoryobsolescence[12].−Thecompanyisdependentonmaintainingawiderangeofcontainerstomeetevolvingcustomerdemands,whichmayimpactitsabilitytoadapttomarketchanges[11].−Thecompanyreliesonskilledlaborforitsoperations,andanyshortagemayleadtoincreasedcostsandaffectfinancialperformance[14].−Thecompany’soperationsaresusceptibletofluctuationsinthepricesandavailabilityofnecessarymachineryandvehicles,whichcouldnegativelyimpactprofitability[16].−Thecompanyisexposedtopotentialsupplychaininterruptionsthatcouldadverselyaffectrevenueandprofitability[23].−Thecompanymayfaceincreasedoperationalcostsduetocompliancewithenvironmental,health,andsafetyregulations[29].−Thecompanyissubjecttocreditrisksfromcustomerswhomaydelayordefaultonpayments,impactingfinancialperformance[21].−Thereisnolong−termcommitmentfromcustomers,whichmayleadtosignificantdecreasesinsalesifrelationshipsaredisrupted[20].−Thecompanyreliesonthird−partylogisticsprovidersfortimelydelivery,andanydisruptionscouldimpactoperations[24].−Thecompanyisexposedtoforeigncurrencyexchangeratefluctuations,whichmayaffectfinancialresults[28].−Thecompanyfacesrisksrelatedtoinadequateinsurancecoverageforbusinessinterruptions,whichcouldadverselyaffectfinancialresults[30].−Thecompanyisexposedtorisksfromactsofwar,terroristattacks,andotheruncontrollableeventsthatmaydisruptoperations[36].CorporateGovernanceandCompliance−Thecompanyisclassifiedasanemerginggrowthcompany,allowingittotakeadvantageofreducedreportingrequirementsanddelaycompliancewithcertainaccountingstandards[47].−Thecompanymayloseitsforeignprivateissuerstatusifmorethan505.00 per share, resulting in total net proceeds of approximately $6.7 million[8]. - As of the date of the Annual Report, the company has 19,787,500 Ordinary Shares issued and outstanding[41]. - The trading price of the company's Ordinary Shares may be volatile due to various factors, including market conditions and operational performance[40]. Financial Management - The company is exposed to interest rate risk due to short-term bank loans, which typically have fixed rates for twelve months[224]. - Credit risk is managed through in-house research and analysis, focusing on the probability of default by customers[225]. - Liquidity risk is monitored to ensure sufficient capital resources are available to meet business commitments[226]. - The company's reporting currency is the United States Dollar, with nearly all revenues and expenses consolidated in this currency[227].
