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雄岸科技(01647) - 2024 - 年度财报
GRANDSHORESGRANDSHORES(HK:01647)2024-07-31 08:45

Chairman's Report Performance Highlights and Business Outlook The Group achieved significant performance improvement, returning to profitability with total revenue up 46.2% and gross profit up 94.5%, driven by integrated building services, construction, and IT businesses Key Financial Indicators for FY2024 | Indicator | For the year ended March 31, 2024 | For the year ended March 31, 2023 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | Approximately 84.5 million Singapore Dollars | Approximately 57.8 million Singapore Dollars | +46.2% | | Gross Profit | Approximately 17.7 million Singapore Dollars | Approximately 9.1 million Singapore Dollars | +94.5% | | Gross Profit Margin | Approximately 20.9% | Approximately 15.7% | +5.2pp | | Profit / (Loss) Attributable to Owners of the Company | Profit approximately 2.2 million Singapore Dollars | Loss approximately 6.4 million Singapore Dollars | Returned to Profitability | - Performance improvement was primarily attributed to increased revenue and gross profit across three business segments: integrated building services, building construction engineering, and information technology development and application7 - Revenue growth in integrated building services and building construction engineering businesses resulted from the Group's proactive pricing and targeted bidding strategies, securing more construction contracts7 - Revenue from information technology development and application business turned profitable, primarily due to the increase in Bitcoin price and trading volume during the review period8 - The Group's gross profit margin improvement was mainly due to increased revenue contribution from higher-margin information technology business and better economies of scale in integrated building services and construction businesses8 Management Discussion and Analysis Business Review and Outlook The Group achieved revenue and gross profit growth despite construction challenges, with strong digital asset performance, and plans to diversify into e-commerce, AI, and VR - According to Singapore's Building and Construction Authority, total construction demand for 2024 is projected to be between S$32 billion and S$38 billion, with steady growth expected mid-term (2025-2028), driven primarily by public sector projects11 - The Group anticipates the 2024 construction industry outlook remains challenging due to external uncertainties, negative economic outlook, and increased costs from labor shortages in Singapore12 - Digital asset trading business benefited from Bitcoin's price increase from approximately US$28,000 to US$70,000, generating approximately S$6.7 million in revenue and recognizing approximately S$1.0 million in fair value gains12 - In the future, the Group plans to expand its business into broader internet technology areas, including e-commerce, digital media marketing, artificial intelligence, and virtual reality, beyond just blockchain technology13 Financial Review The Group demonstrated strong financial performance this fiscal year, with total revenue increasing by 46.2% to S$84.5 million and gross profit by 94.5% to S$17.7 million, driven by all segments, especially construction and IT, resulting in a net profit of approximately S$2.2 million Revenue Performance by Business Segment | Business Segment | FY2024 Revenue (Singapore Dollars) | FY2023 Revenue (Singapore Dollars) | Year-on-year Growth | | :--- | :--- | :--- | :--- | | Integrated Building Services | Approximately 56.1 million | Approximately 48.0 million | +16.9% | | Building Construction Engineering | Approximately 20.8 million | Approximately 10.1 million | +105.9% | | Information Technology Development and Application | Approximately 7.7 million | Approximately (0.4) million | Returned to Profitability | - Gross profit margin increased from 15.7% to 20.9%, primarily due to a higher revenue contribution from the high-margin information technology business and improved economies of scale in integrated building services and construction businesses19 - Other income increased by S$1.4 million year-on-year, mainly from higher government grants and interest income21 - Administrative expenses increased by 22.7% to S$15.7 million year-on-year, primarily due to higher salaries and related expenses from an increased total number of employees23 - The Group returned to profitability, turning from a loss of approximately S$6.4 million last year to a profit of approximately S$2.2 million this year26 Liquidity and Financial Resources The Group maintained a robust financial position with total bank balances and cash of approximately S$15.8 million and a current ratio of 3.8 times as of March 31, 2024, while recording a foreign exchange gain of approximately S$0.707 million Liquidity and Capital Structure Indicators (as of March 31, 2024) | Indicator | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Total Bank Balances and Cash | Approximately 15.8 million Singapore Dollars | Approximately 15.3 million Singapore Dollars | | Current Ratio | Approximately 3.8 times | Approximately 5.6 times | | Debt Ratio | Approximately 0.7% | Approximately 0.9% | - The Group is exposed to foreign exchange risk from non-Singapore Dollar denominated assets and liabilities, recording a foreign exchange gain of approximately S$0.707 million this year, compared to a loss of approximately S$0.72 million last year34 - The Board of Directors does not recommend the payment of a final dividend for the review period30 Employees and Remuneration Policy The Group's total full-time employees increased from 333 to 461 by the end of the reporting period, with remuneration policies based on work scope, responsibilities, and performance, including discretionary bonuses, retirement, medical, and training benefits - As of March 31, 2024, the Group employed 461 full-time employees, a significant increase from 333 as of March 31, 202337 Key Risks and Uncertainties The Group faces key risks including economic changes impacting Singapore's property and construction markets, reliance on non-recurring successful bids, and financial risks such as interest rates, currency, credit, liquidity, and share price fluctuations - Key risks include changes in economic conditions, the non-recurring nature of project wins, financial risks (interest rate, currency, credit, etc.), and legal and regulatory compliance risks41 Use of Proceeds from Listing The Group's net proceeds of approximately S$21.6 million from its 2017 listing were fully utilized by March 31, 2024, with some funds reallocated for a property acquisition, while S$2.39 million from the 2022 subscription was used for IT expansion and working capital - The net proceeds of approximately S$21.6 million from the 2017 listing were fully utilized as of March 31, 202440 - In June 2023, the Board revised the use of unutilized listing proceeds for the acquisition of a property in Singapore, a transaction approved by shareholders and completed in November 2023424344 - Of the approximately S$2.54 million net proceeds from the May 2022 subscription, S$2.39 million had been utilized by the end of the reporting period, with the remaining approximately S$0.146 million planned for new financial services business development by the end of FY20254647 Subsequent Events After Reporting Period Subsequent to the reporting period, Bitcoin's market price declined from approximately US$70,000 as of March 31, 2024, to approximately US$62,000 as of the report date, with no other significant events occurring - Bitcoin's market price decreased from approximately US$70,000 at the end of the reporting period to approximately US$62,000 as of the report date48 Directors and Senior Management Biographies Directors and Senior Management Profiles This section details the biographies of the company's directors and senior management, including their professional experience and appointments, with a focus on Chairman and Executive Director Mr. Yao Yongjie's expertise in blockchain and AI investment - Chairman and Executive Director Mr. Yao Yongjie is a renowned investor in the blockchain industry, serving as Chairman of private equity firm Hangzhou Tunlan, and was an angel investor in Nasdaq-listed Canaan (CAN)51 - Board members and senior management possess extensive professional backgrounds and experience across various fields, including construction, finance, accounting, investment management, and information technology51525763 Corporate Governance Governance Structure and Compliance The Group maintains high corporate governance standards, largely complying with the Corporate Governance Code, with the only deviation being the combined roles of Chairman and CEO due to a vacant CEO position since July 2021, supported by audit, remuneration, and nomination committees - The Company complied with the Corporate Governance Code during the reporting year, with the sole deviation being the combined roles of Chairman (Mr. Yao Yongjie) and Chief Executive Officer, as the CEO position has been vacant since July 20216672 - The Board comprises seven members, including one executive director, three non-executive directors, and three independent non-executive directors, meeting listing rule requirements for the number and professional qualifications of independent non-executive directors6874 - The Audit Committee reviewed the annual financial statements, risk management, and internal control systems, and recommended the re-appointment of the external auditor8789 - The Board is responsible for the Group's risk management and internal control systems, which have been reviewed and deemed effective and efficient107 - The report clarifies procedures for shareholders to convene general meetings, propose resolutions, and make inquiries to the Board, safeguarding shareholder rights112113114 Directors' Report Summary of Directors' Report This report summarizes the Group's main businesses, performance, and key events, including no recommended final dividend, disclosures on shareholdings, share option changes, key customer/supplier percentages, and the auditor change during the period - The Board does not recommend the payment of any final dividend for the review period125 - Chairman Mr. Yao Yongjie holds approximately 30.64% of the Company's shares through controlled corporations and direct beneficial ownership145 - During the review period, 30,000,000 share options under the share option scheme lapsed, with no options granted, exercised, or cancelled156 Key Customer and Supplier Percentages | Category | Item | Percentage | | :--- | :--- | :--- | | Sales | Largest Customer | 22.33% | | | Top Five Customers | 56.88% | | Procurement | Largest Supplier | 40.44% | | | Top Five Suppliers | 51.99% | - On January 5, 2024, Crowe (HK) CPA Limited resigned as auditor due to a disagreement on audit fees, and Evergreen (Hong Kong) CPA Limited was appointed as the new auditor172 Environmental, Social and Governance (ESG) Report Environmental Performance The Group is committed to environmental protection, maintaining an ISO 14001-compliant environmental management system, complying with regulations, and despite business expansion, achieved reduced greenhouse gas, paper, and energy consumption densities through mitigation efforts, while assessing climate change risks Greenhouse Gas Emissions Overview | Greenhouse Gas Emissions | Unit | FY2024 | FY2023 | | :--- | :--- | :--- | :--- | | Scope 1 (Vehicle Fuel) | tonnes of CO2 equivalent | 536.63 | 475.48 | | Scope 2 (Electricity Consumption) | tonnes of CO2 equivalent | 97.43 | 76.79 | | Scope 3 (Paper Disposal) | tonnes of CO2 equivalent | 13.51 | 10.37 | | Total | tonnes of CO2 equivalent | 647.57 | 562.64 | | Emissions Intensity | tonnes of CO2 equivalent/employee | 1.40 | 1.69 | Resource Usage Overview | Resource Usage | Unit | FY2024 | FY2023 | | :--- | :--- | :--- | :--- | | Total Energy Consumption | kWh | 2,303,979.85 | 2,025,753.59 | | Energy Consumption Intensity | kWh/employee | 4,997.79 | 6,083.34 | | Total Water Consumption | cubic meters | 6,493.80 | 6,502.00 | | Water Consumption Intensity | cubic meters/employee | 14.09 | 19.53 | - The Group has identified and assessed potential climate change risks, including physical risks like extreme weather events and transitional risks such as policy and regulatory changes, and has developed corresponding prevention and mitigation strategies214 Social Responsibility The Group prioritizes employees, providing a healthy, safe, and equitable work environment, with significant staff growth and comprehensive benefits, maintaining OHSAS 18001 certification with no fatalities in three years, emphasizing ethical supply chain management, service quality, and anti-corruption policies - As an equal opportunity employer, the Group adheres to regulations like Singapore's Employment Act, basing recruitment and promotion on merit while opposing all forms of discrimination216224 - As of March 31, 2024, the Group's total workforce was 461 employees, a significant increase from 333 last year, with detailed employee composition provided by gender, age, employee category, and region228 - The Group has obtained OHSAS 18001 Occupational Health and Safety Management System certification, reporting no work-related fatalities or lost days due to injury in the past three fiscal years242243244 - The Group strictly prohibits child and forced labor, verifying candidate ages during the recruitment process254 - The Group conducts rigorous selection and performance evaluations for suppliers and subcontractors, including environmental, health, and safety systems as evaluation criteria, with 232 suppliers during the reporting period258259 - The Group is committed to maintaining high ethical standards, having established anti-corruption policies and whistleblowing procedures, with no legal cases or violations related to corruption reported during the period275276 Independent Auditor's Report Audit Opinion and Key Matters Evergreen (Hong Kong) CPA Limited issued an unmodified opinion on the Group's consolidated financial statements for the year ended March 31, 2024, with the key audit matter being revenue recognition for integrated building services and construction engineering, addressed through internal control assessment, contract sampling, cost testing, and work certification comparison - The auditor issued an unmodified opinion on the Group's consolidated financial statements283 - The key audit matter was 'Revenue recognition from integrated building services and building construction engineering,' with the primary risk involving significant judgment in estimating budgeted contract revenue and total costs288 - The auditor's procedures included assessing internal controls, sampling contracts and costs, testing invoices and client acceptance records, and comparing recognized contract revenue with work certifications issued by independent surveyors289 - The report notes that the consolidated financial statements for the previous year (ended March 31, 2023) were audited by another auditor, who issued an unmodified opinion291 Consolidated Financial Statements Consolidated Statement of Profit or Loss and Other Comprehensive Income This fiscal year, the Group achieved total revenue of S$84.53 million, a 46.2% year-on-year increase, with gross profit reaching S$17.66 million, up 94.5%, resulting in a pre-tax profit of S$2.41 million and a net profit of S$2.01 million, successfully turning profitable from a S$6.49 million loss last year Consolidated Statement of Profit or Loss Summary (Unit: Singapore Dollars) | Item | FY2024 | FY2023 | | :--- | :--- | :--- | | Revenue | 84,529,421 | 57,768,008 | | Gross Profit | 17,662,748 | 9,093,796 | | Profit / (Loss) Before Tax | 2,405,632 | (6,458,923) | | Profit / (Loss) for the Year | 2,012,520 | (6,488,488) | | Profit / (Loss) Attributable to Owners of the Company | 2,209,872 | (6,428,856) | | Basic Earnings / (Loss) Per Share (Singapore cents) | 0.18 | (0.55) | Consolidated Statement of Financial Position As of March 31, 2024, the Group's total assets were S$73.90 million, total liabilities S$14.55 million, and total equity S$59.35 million, an increase from S$57.98 million last year, driven by a significant rise in non-current assets and a decrease in current assets Consolidated Statement of Financial Position Summary (Unit: Singapore Dollars) | Item | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Assets | | | | Non-current assets | 19,172,699 | 10,347,258 | | Current assets | 54,724,322 | 58,186,396 | | Total assets | 73,897,021 | 68,533,654 | | Liabilities and Equity | | | | Current liabilities | 14,300,292 | 10,349,394 | | Non-current liabilities | 250,589 | 203,550 | | Total liabilities | 14,550,881 | 10,552,944 | | Total equity | 59,346,140 | 57,980,710 | Consolidated Statement of Cash Flows This fiscal year, the Group experienced a net cash outflow of S$9.75 million from operating activities, a net cash inflow of S$10.91 million from investing activities, and a net cash outflow of S$0.54 million from financing activities, resulting in a net increase of S$0.62 million in cash and cash equivalents, with an ending balance of S$15.80 million Consolidated Statement of Cash Flows Summary (Unit: Singapore Dollars) | Item | FY2024 | FY2023 | | :--- | :--- | :--- | | Net cash from operating activities | (9,753,126) | 4,496,284 | | Net cash from investing activities | 10,914,246 | (23,821,958) | | Net cash from financing activities | (538,251) | 2,363,328 | | Net increase / (decrease) in cash and cash equivalents | 622,869 | (16,962,346) | | Cash and cash equivalents at beginning of year | 15,317,016 | 32,433,321 | | Cash and cash equivalents at end of year | 15,804,006 | 15,317,016 | Summary of Notes to the Consolidated Financial Statements The notes to the financial statements detail the Group's accounting policies, key judgments, and financial data, focusing on revenue recognition (Note 6), digital asset accounting as inventory at fair value (Note 4a), and financial instrument risk management (Note 36), including credit, liquidity, market, and price risks, especially those related to digital assets - Revenue recognition: Integrated building services and construction engineering revenue is recognized over time using the output method; IT business software license rental revenue is also recognized over time; digital asset trading revenue is recognized at the point of transaction334336339438 - Digital asset inventories (primarily Bitcoin) are classified as inventories and measured at fair value less costs to sell, with fair value changes recognized in profit or loss385418 - Financial risk management: The Group's credit risk is concentrated among several major clients in the construction industry; currency risk primarily arises from USD-denominated assets and liabilities; price risk is associated with held listed securities and digital asset inventories565570577599 - As of March 31, 2024, the Group had no significant capital commitments623 Five-Year Financial Summary Five-Year Financial Data Review This section presents key performance and financial position data for the Group's past five fiscal years, showing revenue growth in the last two years to a five-year high in FY2024, with profit attributable to owners turning positive, and total assets and equity increasing in FY2024 Five-Year Financial Summary (Unit: Singapore Dollars) | Item | 2024 | 2023 | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | :--- | :--- | | Performance | | | | | | | Revenue | 84,529,421 | 57,768,008 | 44,702,564 | 49,149,302 | 46,611,664 | | Gross Profit | 17,662,748 | 9,093,796 | 12,044,819 | 21,767,369 | 12,777,609 | | Profit / (Loss) Attributable to Owners of the Company | 2,209,872 | (6,428,856) | (982,487) | 5,276,960 | (900,568) | | Assets and Liabilities | | | | | | | Total Assets | 73,897,021 | 68,533,654 | 72,985,112 | 75,769,780 | 66,110,901 | | Total Liabilities | 14,550,881 | 10,552,944 | 9,498,035 | 11,307,304 | 12,601,228 | | Total Equity | 59,346,140 | 57,980,710 | 63,487,077 | 64,462,476 | 53,509,673 |