Financial Performance - The group's revenue for the six months ended June 30, 2020, was approximately SGD 35.5 million, a decrease of about 21.8% compared to SGD 45.4 million in the same period last year[6]. - Gross profit fell to approximately SGD 5.8 million, down 46.3% from approximately SGD 10.7 million for the six months ended June 30, 2019[6]. - The group reported a pre-tax profit of SGD 426,000, significantly lower than SGD 3.36 million in the previous year[12]. - The net profit for the period was SGD 426,000, compared to SGD 2.77 million in the same period last year[12]. - Total comprehensive income for the six months ended June 30, 2020, was SGD 425,974, compared to SGD 2,766,722 for the same period in 2019, reflecting a significant decrease[20]. - Revenue from road construction services for the six months ended June 30, 2020, was SGD 9,256,450, a slight decrease of 0.8% from SGD 9,331,768 in 2019[35]. - Revenue from construction support services for the same period was SGD 26,288,921, down 27.1% from SGD 36,099,404 in 2019[35]. - The company's net profit after tax dropped from approximately SGD 2.8 million to about SGD 0.4 million for the six months ended June 30, 2020[83]. Assets and Liabilities - The group's total assets as of June 30, 2020, were SGD 135.8 million, slightly down from SGD 137.6 million at the end of 2019[17]. - Trade receivables increased to SGD 68.9 million from SGD 65.3 million at the end of 2019[17]. - Current liabilities decreased to SGD 59.8 million from SGD 67.8 million at the end of 2019[17]. - The group reported unbilled revenue of SGD 59,566,056 as of June 30, 2020, an increase from SGD 55,515,978 at the end of 2019, indicating a growth of about 7.3%[58]. - The total interest-bearing loans increased to approximately SGD 42.8 million as of June 30, 2020, up from SGD 40.6 million as of December 31, 2019, representing an increase of about SGD 2.2 million[88]. - The equity balance increased from approximately SGD 55.1 million as of December 31, 2019, to approximately SGD 55.5 million as of June 30, 2020, due to profits recorded during the period[88]. Cash Flow and Investments - Cash generated from operating activities for the six months ended June 30, 2020, was SGD 1,616,648, an increase of 50.3% from SGD 1,076,642 in 2019[23]. - The net cash used in investing activities for the six months ended June 30, 2020, was SGD (184,285), compared to SGD 18,123 in 2019, indicating a shift in investment strategy[23]. - The company maintained cash and cash equivalents at SGD 4,003,133 as of June 30, 2020, slightly down from SGD 4,327,736 at the end of the previous year[23]. - The group acquired property, plant, and equipment at a cost of SGD 278,765 for the six months ended June 30, 2020, compared to SGD 119,307 in the same period of 2019, representing an increase of approximately 133.5%[49]. Operational Strategy - The group plans to continue developing new clients and implementing strict cost control measures on existing projects[7]. - The board remains confident in the long-term prospects of the construction industry despite the ongoing COVID-19 pandemic[7]. - The company will focus on its core business of road engineering and construction support services while preparing for future opportunities[7]. Employee and Governance - The group employed 444 employees as of June 30, 2020, down from 538 employees as of December 31, 2019[91]. - The company has complied with the corporate governance code, except for the separation of the roles of Chairman and CEO, which are held by the same individual, Mr. Chan Chi Long[113]. - The group has adopted a share option scheme for eligible employees, including directors, based on performance and the group's profitability[91]. Other Financial Metrics - The company reported a basic earnings per share of SGD 0.0426 for the six months ended June 30, 2020, down from SGD 0.277 in 2019, representing a decrease of about 84.7%[46]. - Total employee costs decreased to SGD 5,306,585 in 2020 from SGD 9,290,228 in 2019, indicating a reduction of approximately 42.5%[42]. - Administrative expenses decreased from approximately SGD 6.3 million to about SGD 4.9 million, mainly due to reduced employee costs during the circuit breaker period[79]. - Financing costs for the six months ended June 30, 2020, totaled SGD 1,511,104, an increase of 17.7% from SGD 1,283,691 in 2019[40]. - The gross profit margin decreased from approximately 24% to about 16% during the same period[77]. Dividends and Shareholder Interests - The company did not declare any dividends during the interim period, maintaining a policy of no dividend distribution[45]. - The board did not recommend the payment of an interim dividend for the six months ended June 30, 2020[96]. - The company confirmed that there were no competitive interests from controlling shareholders or their close associates during the reporting period[108].
双运控股(01706) - 2020 - 中期财报