Financial Performance - For the fiscal year ending June 30, 2023, the company reported revenue of SGD 111.4 million, an increase from SGD 77.8 million for the previous year[10]. - The net profit for the same period was approximately SGD 2.3 million[10]. - The group reported revenue of approximately SGD 111.4 million for the year ended June 30, 2023, an increase of about SGD 33.6 million or approximately 43.2% compared to SGD 77.8 million for the year ended June 30, 2022[21]. - The cost of sales for the year ended June 30, 2023, was approximately SGD 102.8 million, an increase of about SGD 28.8 million or approximately 38.9% from SGD 74.0 million for the year ended June 30, 2022[22]. - Gross profit increased from approximately SGD 3.8 million for the year ended June 30, 2022, to approximately SGD 8.6 million for the year ended June 30, 2023, with a gross margin improvement from approximately 4.9% to approximately 7.7%[23]. - The group recorded a net profit of approximately SGD 2.3 million for the year ended June 30, 2023, compared to a loss of approximately SGD 0.4 million for the year ended June 30, 2022[29]. - Other income and gains decreased from approximately SGD 2.6 million for the year ended June 30, 2022, to approximately SGD 1.3 million for the year ended June 30, 2023, primarily due to reduced government subsidies[26]. - Financing costs decreased from approximately SGD 181,000 for the year ended June 30, 2022, to approximately SGD 135,000 for the year ended June 30, 2023, due to lower average borrowings[27]. - Income tax expenses increased to approximately SGD 65,000 for the year ended June 30, 2023, compared to SGD 9,000 in the previous year, mainly due to insufficient provisions in the prior tax year[28]. Construction Industry Outlook - The company's order book remains strong at approximately SGD 482.8 million as of June 30, 2023[12]. - The construction contracts awarded in Singapore for 2023 are expected to range between SGD 27 billion and SGD 32 billion, with public sector demand accounting for about 60%[10]. - The total value of construction contracts awarded in Singapore for 2023 is expected to be between SGD 27 billion and SGD 32 billion, with public sector demand accounting for about 60% of total construction demand[19]. - The construction industry in Singapore grew by 6.8% year-on-year in Q2 2023, slightly lower than the 6.9% growth recorded in the previous quarter[17]. - The Ministry of Trade and Industry revised the GDP growth forecast for 2023 from "0.5% to 2.5%" to "0.5% to 1.5%" due to weak external demand and ongoing global economic risks[18]. Operational Challenges - Labor shortages continue to challenge the construction industry, prompting companies to increase wages to retain talent[9]. - The company is committed to improving employee skills to navigate the challenging operational environment[12]. - The overall financial position of the company remains stable despite the challenging business environment[12]. Investments and Innovations - The company aims to enhance competitiveness and productivity through innovation and technology adoption[12]. - The company has utilized approximately HKD 24.7 million for the purchase of new machinery and equipment to enhance production capacity and quality[49]. - Approximately HKD 20.9 million has been allocated for initial funding of a new residential building project awarded by Singapore government agencies[49]. - The company has invested around HKD 13.6 million in hiring skilled workers and digital technology related to new construction techniques, including BIM and VDC[49]. - A total of HKD 21.6 million has been spent to acquire land use permits for a precast production facility and to construct temporary accommodation[52]. - The company has allocated approximately HKD 7.6 million for workforce enhancement to support business expansion[53]. - The company plans to continue evaluating and implementing new technologies to digitize processes and improve overall productivity and efficiency[49]. - The company aims to strengthen its financial capacity for high-value contracts in new construction and renovation projects[49]. - The company has committed to upgrading BIM software and related technologies to enhance technical capabilities[49]. - The company has made significant investments in expanding its labor force to meet the demands of business growth[53]. Management and Governance - Tay Yen Hua has been appointed as the Executive Director since October 8, 2008, overseeing the overall business operations and financial performance of the group[61]. - The company has a strong management team with over 49 years of experience in secretarial, accounting, and human resources, led by Tay Yen Hua[62]. - The group is focused on enhancing its technical capabilities and project management under the leadership of Huang Shan Da, who has over 30 years of experience in the construction industry[64][66]. - Kwan Shu Ming, with over 17 years of experience in accounting and management, is responsible for the financial and accounting operations of the group[67][68]. - The company has been actively involved in various projects, ensuring effective management and oversight of design and construction contracts[66]. - The management team includes members with significant experience in the construction sector, contributing to the company's strategic direction and governance[71]. - The company is committed to maintaining high standards of corporate governance and financial reporting, with a dedicated audit committee[71]. - The company emphasizes the importance of human resource planning and development in its operational strategy[66]. - The management team is focused on leveraging their extensive industry experience to enhance the company's competitive position in the market[64]. Corporate Governance - The company has a strong focus on corporate governance, with independent directors providing oversight and advice to the board[76]. - The company emphasizes the importance of independent opinions and governance matters through its independent non-executive directors[76]. - The company has adopted an anti-bribery and anti-corruption policy in May 2022 to enhance ethical standards[103]. - The company has implemented a shareholder communication policy to ensure effective dialogue with shareholders since January 2020[103]. - The company has established a reporting policy to address any substantiated incidents to the board and audit committee since May 2022[103]. - The company has ensured compliance with the corporate governance code, with most new regulations consistent with its existing practices[100]. - The company has a clear framework for determining the remuneration of non-executive directors, requiring shareholder approval[103]. - The company has a commitment to transparency and accountability in its governance practices[99]. - The company has a structured approach to risk management and internal controls, including anti-corruption measures[103]. - The company emphasizes the importance of corporate governance as a key element in creating shareholder value[99]. - The board diversity policy was adopted in January 2020, with a current female representation of approximately 25.0% on the board[105]. - The company has established a commitment to gender diversity, with plans to disclose specific numerical targets and timelines in the annual report[105]. - The nomination committee has been chaired by independent non-executive directors since the company's listing, ensuring compliance with listing rules[105]. - The company aims to increase the proportion of female directors gradually, considering stakeholder expectations and best practices[158]. Risk Management and Compliance - The company maintains effective internal control and risk management systems, with annual reviews conducted by the board to ensure their effectiveness[181]. - The company has established clear responsibilities and authority lines within its organizational arrangements for risk management[181]. - The audit committee has confirmed that sufficient disclosures have been made in the financial statements for the year ended June 30, 2023[167]. - The independent advisory firm has reviewed the company's internal control system, including financial, operational, and compliance controls, and found them to be effective and sufficient[184]. - The group adopted a code of conduct in May 2022, which is a crucial part of its internal control procedures[186]. - The whistleblowing policy was adopted in May 2022, providing reliable channels for stakeholders to report serious misconduct without fear of retaliation[187]. - No significant fraud or misconduct events affecting the financial statements or overall operations were discovered as of June 30, 2023[187]. - The group has implemented an anti-bribery and anti-corruption policy to uphold the highest standards of integrity and ethical behavior in its business operations[190]. - The insider information disclosure policy ensures proper handling and publication of insider information to prevent legal violations[192]. - The company has established procedures to manage inquiries from external parties regarding market rumors and other matters[193]. Shareholder Engagement - The company has adopted a shareholder communication policy to ensure shareholders and potential investors receive comprehensive and understandable information in a timely manner[196]. - The company has established effective communication channels with shareholders, providing regular updates on financial performance and strategic direction[197]. - Shareholders can submit written inquiries or requests regarding their rights to the company's main business location in Hong Kong[179]. - The company ensures that all significant resolutions presented at the shareholders' meeting are voted on independently to protect shareholder rights[177]. - As of June 30, 2023, the company's articles of association have been amended to comply with the core shareholder protection standards outlined in the listing rules[198]. - The company publishes annual and interim reports in printed form, available on the stock exchange and its own website[199].
光荣控股(09998) - 2023 - 年度财报