Financial Performance - For the fiscal year ending June 30, 2021, the company's revenue decreased by 30.6% to approximately SGD 26.3 million from about SGD 37.9 million in the previous year[12]. - The gross profit also fell by 67.5% to approximately SGD 2.2 million, down from SGD 6.9 million in the prior year[12]. - The gross margin dropped significantly from approximately 18.1% to about 8.5% due to increased material and labor costs amid the COVID-19 pandemic[13]. - The company reported a net loss of SGD 0.2 million for the fiscal year, a decline of 104.9% from a net profit of SGD 3.7 million in the previous year[13]. - Total revenue decreased by approximately 30.6% from SGD 37.9 million in 2020 to SGD 26.3 million in 2021[17]. - Gross profit fell by about 67.5% from SGD 6.9 million in 2020 to SGD 2.2 million in 2021, with a gross margin decline of 9.6% to 8.5%[25]. - Public sector projects contributed SGD 16.6 million (63.2% of total revenue) in 2021, down from SGD 26.8 million (70.7%) in 2020[17]. - Private sector projects generated SGD 9.7 million (36.8% of total revenue) in 2021, compared to SGD 11.1 million (29.3%) in 2020[17]. - Other income increased to approximately SGD 1.0 million in 2021 from SGD 0.9 million in 2020, primarily due to COVID-19 government subsidies[27]. - The company reported a net loss of approximately SGD 0.2 million for the year ended June 30, 2021, compared to a profit of SGD 3.7 million in 2020[32]. Project and Contract Information - As of June 30, 2021, the company had 32 projects with an estimated contract value of approximately SGD 144.2 million, of which SGD 19.8 million was recognized as revenue during the fiscal year[14]. - The Singapore government is expected to award construction contracts valued between SGD 23 billion and SGD 28 billion in 2021, with continued recovery in construction demand anticipated over the next five years[13]. Expenses and Financial Management - Administrative expenses slightly decreased to SGD 2.7 million in 2021 from SGD 2.8 million in 2020[29]. - Financing costs remained stable at approximately SGD 4,000 in 2021, compared to SGD 6,000 in 2020[30]. - Cash and cash equivalents totaled approximately SGD 17.7 million as of June 30, 2021, up from SGD 15.7 million in 2020[34]. - The group had a total employee cost of approximately SGD 4.3 million, down from SGD 5.3 million in 2020, with a total of 120 employees compared to 159 in the previous year[45]. Corporate Governance - The company has adopted all provisions of the Corporate Governance Code as its own governance practices[83]. - The board of directors consists of three executive directors and three independent non-executive directors[89]. - The board held regular meetings throughout the year to formulate overall strategies and monitor business development and financial performance[87]. - The company expects to hold at least four regular board meetings each fiscal year, approximately once per quarter[91]. - The company has complied with the Corporate Governance Code during the fiscal year ending June 30, 2021[84]. - All directors confirmed compliance with the standards of conduct for securities trading during the year[85]. - The company has a strong commitment to high standards of corporate governance to protect shareholder interests and enhance corporate value[83]. - The board is responsible for overall strategic planning, business development, and corporate management[87]. - The company has established various committees to assist the board in fulfilling its governance responsibilities[87]. - The company established three committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee specific aspects of its affairs[98]. Risk Management and Compliance - The company has established a risk management and internal control system to manage operational and financial risks, ensuring shareholder protection[118]. - The board confirmed the effectiveness and adequacy of the risk management and internal control systems as of June 30, 2021[120]. - The company has no internal audit function and has appointed external consultants to review the effectiveness of its risk management and internal control systems[120]. - The company’s management is responsible for identifying and managing risks within their departments, with quarterly assessments of major risks[119]. - The company’s board is responsible for reviewing the effectiveness of the risk management and internal control systems annually[119]. Shareholder Information - The company has established a communication platform for shareholders and investors through its website, ensuring timely access to financial performance and strategic goals[128]. - The company’s articles of association allow shareholders to request a special general meeting if they hold at least 10% of the paid-up capital[126]. - The company has adopted a dividend policy that allows shareholders to participate in profits while retaining sufficient reserves for future growth, contingent on profitability and operational stability[193]. - No interim dividend was declared or paid for the year ended June 30, 2021[197]. - The board does not recommend a final dividend for the year ended June 30, 2021, compared to zero Singapore dollars in 2020[198]. Investments and Future Plans - The company plans to acquire a new Singapore-based air conditioning and mechanical ventilation contractor with a minimum registration level of "L4" by June 30, 2023, with an allocated budget of $3.5 million[59]. - An additional $0.8 million will be allocated for strengthening the group's workforce by June 30, 2023[59]. - The company has earmarked $3.5 million for initial costs and working capital needs for existing electrical engineering projects[59]. - For new potential electrical engineering projects, the company plans to allocate $3.0 million for initial costs and working capital[59]. - A budget of $0.6 million is set aside for the purchase of additional machinery and equipment by June 30, 2023[59]. - The company will invest $0.4 million in purchasing building information modeling software along with supporting hardware to upgrade its enterprise resource planning system by June 30, 2023[59]. - An allocation of $0.2 million is designated for the purchase of additional vehicles by June 30, 2023[59]. - The company has reserved $1.5 million for general working capital needs, which is not applicable to a specific timeline[59]. - The total amount allocated for these initiatives is $13.5 million, with $8.5 million already utilized, leaving a remaining balance of $5.0 million[59]. Shareholder and Director Interests - As of June 30, 2021, Mr. Hong Wei Kun holds 550,000,000 shares, representing 55.00% of the issued share capital of the company[150]. - Mr. Hong Guo Guang also holds 550,000,000 shares, accounting for 55.00% of the issued share capital, jointly with another individual[150]. - Lead Development Investment Limited, directly owned by Mr. Hong Wei Kun and Mr. Hong Guo Guang, holds 550,000,000 shares, which is 55.00% of the company[157]. - Mr. Hong Wei Kun has a beneficial interest of 87.27% in Lead Development, while Mr. Hong Guo Guang has 12.73%[153]. Supplier and Customer Relationships - The largest supplier accounted for approximately 19.4% of total procurement, while the top five suppliers accounted for about 51.6% of total procurement for the year ended June 30, 2021[183]. - The largest customer contributed approximately 39.5% of total revenue, and the top five customers accounted for about 68.4% of total revenue for the year ended June 30, 2021[183]. - The company has established long-term business relationships with major customers, with most of the top five customers having relationships ranging from three to ten years[186].
坤集团(00924) - 2021 - 年度财报