Financial Performance - The company's revenue for the year ended December 31, 2019, was approximately SGD 112.3 million, an increase of about 23.7% from SGD 90.8 million for the year ended December 31, 2018[8]. - Gross profit rose from approximately SGD 19.0 million for the year ended December 31, 2018, to about SGD 21.5 million for the year ended December 31, 2019, representing a growth of approximately 19%[8]. - The company's profit increased by 77.4%, from approximately SGD 3.1 million for the year ended December 31, 2018, to about SGD 5.5 million for the year ended December 31, 2019[16]. - Revenue from road construction services was approximately SGD 29.6 million, while revenue from building support services was about SGD 82.6 million for the year ended December 31, 2019[16]. - Other income decreased from approximately SGD 0.5 million for the year ended December 31, 2018, to approximately SGD 0.4 million for the year ended December 31, 2019, primarily due to a reduction in rental income[22]. - Administrative expenses decreased from approximately SGD 13.1 million to approximately SGD 12.4 million, a reduction of about SGD 0.7 million, mainly due to lower professional fees[23]. - Financing costs increased by approximately 14.3% from about SGD 2.1 million to approximately SGD 2.4 million, primarily due to increased interest on lease liabilities for acquired machinery and higher borrowings[24]. - Income tax expenses rose from SGD 1.0 million to SGD 1.7 million, an increase of approximately SGD 0.7 million, mainly due to an increase in profit before tax[25]. - Profit after tax increased from approximately SGD 3.1 million to approximately SGD 5.5 million for the year ended December 31, 2019[26]. - Cash and cash equivalents as of December 31, 2019, were approximately SGD 4.2 million, a decrease of about SGD 0.2 million from SGD 4.4 million as of December 31, 2018[41]. - Total interest-bearing loans increased from approximately SGD 31.0 million to SGD 40.6 million, an increase of about SGD 9.6 million[41]. Market Outlook - Public construction demand is expected to reach between SGD 17 billion and SGD 20.5 billion in 2020, accounting for about 60% of the total projected demand[9]. - Total construction demand for 2020 is projected to be between SGD 28 billion and SGD 33 billion, driven by ongoing public construction needs[9]. - The construction industry is anticipated to face a significant impact in Q1 2020, with a year-on-year decline of 4.3% due to COVID-19 disruptions[13]. Corporate Governance - The company has adopted all provisions of the Corporate Governance Code as per the Hong Kong Stock Exchange's Listing Rules[64]. - The board of directors is responsible for setting the overall strategic direction and overseeing financial and administrative functions[65]. - The board includes three executive directors and three independent non-executive directors, ensuring a balanced governance structure[66]. - The company has complied with the Corporate Governance Code, except for provisions A.2.1 and A.6.7, with details provided in the report[64]. - The management team has extensive experience, with key members having over 20 years in financial management and engineering[61][62]. - The company emphasizes high standards of corporate governance to protect shareholder interests and enhance corporate value[64]. - The company has established systems and procedures to achieve its corporate governance objectives[65]. - The company has appointed independent non-executive directors, ensuring at least one has appropriate professional qualifications or relevant financial management expertise[70]. - The company has established a remuneration committee that includes one executive director and two independent non-executive directors, with the chairman being an independent director[75]. - The board will periodically review its structure and consider adjustments as necessary to maintain independence and effectiveness[70]. - The company has adopted a standard code of conduct for securities trading by directors and employees, ensuring compliance throughout the year[74]. - Continuous professional development activities were undertaken by directors, covering topics such as risk assessment and corporate governance[72][73]. - The company has established a risk management and internal control system to protect shareholders' interests and ensure the reliability of financial information[89]. - The audit committee consists of three independent non-executive directors, with Mr. Kiu Chung Hang serving as the chairman[84]. - The company has conducted a review of its risk management and internal control systems during the year, assessing the effectiveness of its policies and procedures[92]. Employee and Social Responsibility - The group employed over 538 employees as of December 31, 2019, with a turnover rate of approximately 33%[168]. - The employee breakdown includes 522 local employees and 155 overseas employees, with a gender distribution of 383 males and 50 females[169]. - The company incurred expenses of SGD 45,066 for external training courses during the fiscal year ending December 31, 2019[185]. - The company has a zero-tolerance policy towards child labor and forced labor, with no significant violations reported for the fiscal year ending December 31, 2019[187]. - The company has obtained OHSAS 18001 certification, recognizing its compliance with occupational health and safety regulations[180]. - The company has a comprehensive anti-corruption policy, with no reported legal cases related to corruption or complaints for the fiscal year ending December 31, 2019[192]. - The group actively seeks opportunities to give back to the community, planning to allocate a certain amount for charitable donations based on profitability in the new year[193]. Shareholder Information - The company did not recommend the payment of a dividend for the year ended December 31, 2019[49]. - The company has adopted a dividend policy that allows shareholders to share in profits while retaining sufficient reserves for future development[118]. - As of December 31, 2019, the company’s directors and key executives held a total of 750,000,000 shares, representing 75% of the issued share capital[127]. - Jian Sheng Holdings Limited, owned 80% by Mr. Chen and 20% by Ms. Chen, holds 750,000,000 shares, which Mr. Chen is deemed to have full beneficial ownership of[128]. - The shareholding structure indicates that Mr. Chen and Ms. Zhang collectively control 75% of the company through Jian Sheng[130]. - The company has no other disclosures regarding any interests or positions held by directors or key executives in the company or its affiliates as of December 31, 2019[129]. - The largest customer accounted for 31.7% of total sales, while the top five customers represented 83.9% of total sales[154]. - The largest supplier accounted for 31.1% of total procurement, with the top five suppliers making up 64.1% of total procurement[154]. Environmental Impact - The company reported a total carbon dioxide emission of 6,401 tons in 2018 and 5,070 tons in 2019, indicating a reduction in emissions[160]. - The company consumed 3,328 kg of paper in 2019, compared to 2,860 kg in 2018, reflecting an increase in paper usage[166]. - The company has implemented a comprehensive management system including ISO 9001, OHSAS 18001, and ISO 14001 to regulate its operations related to environmental, social, and governance matters[158].
双运控股(01706) - 2019 - 年度财报