Financial Performance - The company's revenue for the year ended December 31, 2018, was approximately SGD 90.8 million, an increase of about 38.4% from SGD 65.6 million for the year ended December 31, 2017[7]. - Gross profit decreased from approximately SGD 19.9 million for the year ended December 31, 2017, to approximately SGD 19.0 million for the year ended December 31, 2018, a decline of about 4.5%[7]. - The company's net profit after tax increased from approximately SGD 2.6 million to approximately SGD 3.1 million, representing a growth of 19.2%[12]. - The gross profit margin decreased from approximately 30.3% for the year ended December 31, 2017, to approximately 20.9% for the year ended December 31, 2018, primarily due to lower gross profits from newly awarded contracts[16]. - Administrative expenses increased from approximately SGD 11.5 million to approximately SGD 13.1 million, mainly due to higher employee costs and increased depreciation expenses[18]. - Financing costs rose by approximately 31.3% from SGD 1.6 million to SGD 2.1 million, attributed to increased financing lease interest and higher borrowings[19]. - As of December 31, 2018, the company's cash and cash equivalents were approximately SGD 4.2 million, a decrease of SGD 11.2 million from SGD 15.4 million in 2017[33]. - The total interest-bearing loans as of December 31, 2018, were approximately SGD 31 million, an increase of SGD 3.4 million from SGD 27.6 million in 2017[33]. - The company's equity increased from approximately SGD 46 million as of December 31, 2017, to approximately SGD 49.3 million as of December 31, 2018, due to profits recorded during the year[36]. - No dividends were recommended for the year ended December 31, 2018[42]. Contracts and Market Outlook - The company secured a total of 15 contracts during the year, including 8 main contracts and 7 subcontracting contracts, with a total contract value of approximately HKD 444.2 million[12]. - The total construction demand in Singapore for 2019 is projected to be between SGD 27 billion and SGD 32 billion, with mid-term growth expected[8]. - The company aims to upgrade its contractor grade from B1 to A2 by the end of 2019, increasing its bidding limit from SGD 40 million to SGD 85 million[29]. Fundraising and Resource Allocation - The net proceeds from the fundraising as of December 31, 2018, amounted to approximately HKD 109.5 million, with 86.4 million already utilized[24]. - 67.4% of the net proceeds were allocated for property acquisitions, totaling HKD 73.8 million, of which HKD 50.7 million has been used[24]. - The company plans to enhance its manpower for market expansion, allocating 7.4% of the net proceeds, which is HKD 8.1 million, fully utilized[24]. Governance and Management - The company reported a strategic direction led by CEO Mr. Chen Zhilong, who has over 15 years of experience in the Singapore construction industry[44]. - Ms. Chen Huifen, the Executive Director, oversees financial and administrative functions, bringing over 20 years of experience in accounting[45]. - Ms. Zhang Shufen, also an Executive Director, is responsible for project management and operations, with over 15 years of experience in the construction sector[48]. - The company has a strong governance structure with independent non-executive directors providing oversight on major decisions and corporate governance[49]. - The management team is composed of experienced professionals with diverse backgrounds in engineering, finance, and law, enhancing the company's strategic capabilities[51]. - The company has adopted all provisions of the Corporate Governance Code as its own corporate governance practices[57]. - The board of directors consists of three executive directors and three independent non-executive directors, ensuring a balance of power[60]. - The board held regular meetings throughout the year to set overall strategy and monitor business development and financial performance[59]. - The company has established a system for corporate governance to achieve its governance objectives[59]. - The company has a clear strategy for risk management and internal control effectiveness[59]. Risk Management - The company identified key risks including reliance on suppliers and subcontractors, and the potential inability to hire foreign labor[13]. - The company identified major risks including reliance on suppliers and subcontractors without long-term contracts, which may affect future operations and financial performance[103]. - The workforce is primarily composed of foreign labor, and potential shortages or rising costs due to government regulations in Singapore could negatively impact operations[103]. Corporate Social Responsibility - The company is committed to sustainable practices and compliance with regulatory standards in its operations[51]. - The company has a zero-accident goal related to occupational health and safety, with performance indicators clearly defined and measured by the number of incidents[181]. - The company has a zero-tolerance policy towards child labor and forced labor, with no serious violations reported in the year ended December 31, 2018[186]. - The company actively seeks opportunities to give back to the community, planning to allocate a portion of profits to charitable donations and activities in the coming year[191]. Employee and Training Policies - The employee compensation policy is determined by the human resources department based on performance, qualifications, and capabilities[141]. - The company encourages employee development through training programs and educational assistance to attract new talent and enhance skills[182]. - The company incurred expenses of SGD 66,595 for external training courses in the year ended December 31, 2018[183]. Environmental Compliance - The company achieved a total carbon dioxide emission of 4,548 tons from diesel consumption in 2018, compared to 5,070 tons in 2017[154]. - The company has received OHSAS 18001 certification, recognizing its compliance with occupational health and safety regulations[177]. - The company has adopted a resource utilization policy reflecting the "Reduce, Reuse, Recycle" (3R) concept[156]. - The company has established a comprehensive management system that includes ISO 9001, OHSAS 18001, and ISO 14001 certifications[152]. - The company relies on suppliers and subcontractors to ensure quality and timely execution of work, with all suppliers located in Singapore to reduce carbon emissions[188]. - The company has implemented a comprehensive business code to maintain high ethical standards and strict compliance with anti-bribery, anti-corruption, and anti-money laundering laws, with no reported cases of corruption for the year ended December 31, 2018[190]. Shareholder Information - As of December 31, 2018, Jian Sheng Holdings Limited holds 750,000,000 shares, representing 75% of the issued share capital[121]. - The company has not established an internal audit function due to its simple corporate and operational structure, but will review the need for one periodically[84]. - The company has a commitment to high standards of corporate governance to protect shareholder interests and enhance corporate value[57]. - The attendance record for board meetings and committees shows full participation from all directors[62]. - The company has established a remuneration committee, which includes one executive director and two independent non-executive directors, to review and approve the remuneration policies for all directors and senior management[67]. - The company confirms that the directors are responsible for overseeing the preparation of financial statements that reflect the group's financial position fairly[77]. - The company has adopted a standard code of conduct for securities trading by directors and employees, ensuring compliance throughout the year[66].
双运控股(01706) - 2018 - 年度财报