Financial Performance - The group's revenue for the year ended December 31, 2020, was approximately SGD 65.4 million, a decrease of about 41.8% from SGD 112.3 million for the year ended December 31, 2019[8]. - Gross profit decreased from approximately SGD 21.5 million for the year ended December 31, 2019, to about SGD 9.6 million for the year ended December 31, 2020, representing a decline of approximately 55.3%[8]. - The group's profit decreased by 89.1% from approximately SGD 5.5 million for the year ended December 31, 2019, to about SGD 0.6 million for the year ended December 31, 2020[16]. - The group's revenue for the year ended December 31, 2020, was approximately SGD 65.4 million, a decrease of about 41.8% compared to SGD 112.3 million in the previous year due to the suspension of all construction projects during the virus lockdown[19]. - The group's gross profit decreased from approximately SGD 21.5 million for the year ended December 31, 2019, to approximately SGD 9.6 million for the year ended December 31, 2020, representing a decline of about 55.3%[22]. - The gross profit margin fell from approximately 19.1% for the year ended December 31, 2019, to approximately 14.6% for the year ended December 31, 2020[22]. - The group's net profit after tax decreased from approximately SGD 5.5 million for the year ended December 31, 2019, to approximately SGD 0.6 million for the year ended December 31, 2020[27]. - Administrative expenses decreased from approximately SGD 12.4 million for the year ended December 31, 2019, to approximately SGD 9.6 million for the year ended December 31, 2020, mainly due to reduced employee costs during the lockdown[24]. Cash and Debt Management - Cash and cash equivalents as of December 31, 2020, were approximately SGD 5.6 million, an increase of about SGD 1.4 million from SGD 4.2 million as of December 31, 2019[16]. - Total interest-bearing loans amounted to approximately SGD 46.4 million as of December 31, 2020, an increase of about SGD 5.8 million from SGD 40.6 million as of December 31, 2019[16]. - The group maintained a current ratio of approximately 1.5 times for both December 31, 2019, and December 31, 2020[16]. - The asset-to-liability ratio increased from approximately 1.0 times as of December 31, 2019, to about 1.1 times as of December 31, 2020[16]. - The current ratio remained stable at approximately 1.5 times for both 2019 and 2020, while the debt-to-equity ratio increased from approximately 1.0 times in 2019 to about 1.1 times in 2020[40]. - The company's equity increased slightly from approximately SGD 55.1 million in 2019 to about SGD 55.2 million in 2020 due to recorded profits during the year[40]. Market Outlook and Industry Trends - The construction demand in Singapore is expected to gradually recover in 2021, with projected contract values between SGD 23 billion and SGD 28 billion[8]. - The construction industry is anticipated to see continued recovery over the next five years, with demand potentially increasing to SGD 25 billion to SGD 32 billion from 2022 to 2025[8]. - The construction industry in Singapore contracted by 35.9% in 2020, compared to a growth of 1.6% in 2019, largely due to the impact of COVID-19[30]. - The board remains cautious about the long-term outlook for the construction industry in Singapore amid ongoing uncertainties related to the COVID-19 pandemic[30]. Operational Challenges - The group faced significant challenges due to labor shortages and rising costs of materials amid the COVID-19 pandemic[9]. - The group faced significant financial pressure due to fixed costs, material wastage, and rising prices during the lockdown period, with no revenue generated from April to mid-July 2020[32]. - The company faced challenges in labor shortages and the introduction of new foreign workers, impacting the construction industry[36]. Corporate Governance - The board of directors consists of three executive directors and three independent non-executive directors, ensuring compliance with the listing rules regarding independence[66]. - The company has adopted the corporate governance code and has complied with its provisions, except for A.2.1, which will be explained further[64]. - The remuneration committee reviewed the group's remuneration policies and approved the remuneration of executive directors and senior management during the year[78]. - The board held regular meetings throughout the year to oversee business development and financial performance[65]. - Independent non-executive directors confirmed their independence in accordance with the listing rules, ensuring compliance with governance standards[69]. - The company has established a remuneration committee to provide recommendations on the remuneration policies for all directors and senior management[75]. - The board believes that having the same person serve as both chairman and CEO enhances business strategy execution and decision-making[70]. - Continuous professional development activities were recorded for all directors, covering topics such as corporate governance and risk management[72][73]. - The company has implemented a code of conduct for securities trading by directors and employees, ensuring adherence to the established standards[74]. - The board is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[63]. Environmental, Social, and Governance (ESG) Initiatives - The group established an Environmental, Social, and Governance (ESG) working group to collect relevant data and report to the board on ESG risks and internal control effectiveness[156]. - The ESG report covers the group's main business activities in Singapore, which is the primary source of revenue[157]. - The group has implemented a comprehensive management system including ISO 9001, OHSAS 18001, and ISO 14001 to regulate operations related to ESG aspects[170]. - The group emphasizes stakeholder engagement, maintaining communication with shareholders, employees, suppliers, and the public to address ESG performance expectations[163]. - The group has identified key ESG issues through management participation and surveys, ensuring effective management policies and internal controls are in place[166]. - The group aims to expand the scope of ESG disclosures at appropriate times to enhance transparency[157]. - The board sets the overall ESG strategy to ensure effective risk management and internal control mechanisms[156]. - The group recognizes the importance of community investment and participation as part of its social responsibility initiatives[167]. Employee and Market Engagement - User data showed a 20% increase in customer engagement across digital platforms, indicating strong market interest[58]. - Employee satisfaction scores improved by 18%, indicating a positive work environment and effective management practices[56]. - The company emphasizes that employees are its most valuable asset and is committed to their continuous development[155]. Strategic Growth and Development - The company anticipates a revenue growth of 10% for the next fiscal year, driven by new product launches and market expansion strategies[62]. - Research and development efforts have led to the introduction of two new technologies aimed at enhancing construction efficiency, expected to be rolled out in Q2 2024[61]. - The company is exploring potential acquisitions to expand its market share, with a focus on firms that complement its existing service offerings[60]. - A new strategic partnership has been established with a leading technology firm to innovate in smart construction solutions, projected to enhance project delivery timelines by 25%[59]. - The company achieved a 30% increase in project completions compared to the previous year, reflecting improved project management practices[57]. - The board has approved a budget increase of 15% for marketing efforts to boost brand visibility and attract new clients[55]. - The company plans to enter two new international markets by the end of 2024, aiming for a 5% contribution to overall revenue from these regions[58]. Risk Management - The group has identified key risks including reliance on suppliers and foreign labor availability, which may impact operational and financial performance[110]. - The company has implemented a structured internal control process to identify and mitigate significant risks affecting business objectives[89]. - The company’s risk management and internal control systems are considered effective and adequate[100]. Shareholder Information - The company has a minimum of 25% of its issued share capital held by the public as of the report date[150]. - The company’s major shareholder Jian Sheng Holdings Limited holds 750,000,000 shares, representing 75% of the total[129]. - The total number of shares available for issuance due to the exercise of stock options is up to 100,000,000 shares, representing 10% of the total issued shares[133]. - The largest customer accounts for 24.4% of the sales, while the top five customers together account for 89.4% of the sales[151]. - The largest supplier accounts for 31.1% of the procurement, and the top five suppliers account for 64.1% of the procurement[151]. Audit and Compliance - The current auditor, RSM Chio Lim LLP, has been appointed since September 18, 2020, with audit fees of approximately SGD 150,000 and non-audit fees of approximately SGD 15,000 for the year ended December 31, 2020[87]. - Deloitte & Touche LLP resigned as the company's auditor effective September 18, 2020, and a new auditor was appointed to fill the vacancy[153]. - The audit committee consists of three independent non-executive directors, responsible for reviewing financial statements and internal controls[84]. - The company has established a nomination committee to review the board's structure and composition, ensuring diversity in terms of skills, experience, and background[80]. - The company has adopted a board diversity policy to enhance the effectiveness of the board by considering various factors such as skills, industry experience, and gender[88]. - The company’s financial statements are prepared under the responsibility of the board, ensuring a true and fair view of the financial position[85]. Sustainability and Environmental Impact - For the year ending December 31, 2020, the group reported emissions of 1.09 tons of nitrogen oxides (NOx), 0.0137 tons of sulfur oxides (SOx), and 0.08 tons of particulate matter (PM)[173]. - The main greenhouse gas emissions come from diesel consumption and purchased electricity, with measures in place to reduce dust and prevent sludge leakage[174]. - The total greenhouse gas emissions for the year 2020 amounted to 2,241.61 tons of CO2 equivalent, with direct emissions from gasoline and diesel consumption at 2,231.15 tons[179]. - The company has implemented measures to reduce energy consumption, achieving a diesel usage of 9,135,635.71 kWh, which translates to 24,960.75 kWh per employee[191]. - The total water consumption for the year 2020 was recorded at 16,856.00 cubic meters, equating to 46.05 cubic meters per employee[194]. - The company reported a waste generation of 0.90 tons of office paper, resulting in a density of 0.0024 tons per employee[184]. - The density of greenhouse gas emissions was 6.12 tons of CO2 equivalent per employee and 35.03 tons per million SGD of revenue[179]. - The company has adopted energy-efficient practices, including the use of solar power for machinery and the installation of energy monitoring systems on construction sites[190]. - The company has increased employee awareness regarding waste management and energy conservation through various initiatives[183][189]. - The company has not generated significant hazardous waste during the reporting period, adhering to local regulations for waste disposal[181]. - The company has established noise management plans to mitigate noise pollution from construction activities, ensuring compliance with local regulations[196]. - The company has implemented measures to optimize fuel consumption by planning routes in advance and using energy-efficient vehicles[179]. - The company has implemented strict measures to monitor and control vibrations, ensuring compliance with vibration standards as confirmed by independent monitoring reports[197]. - The company promotes environmental awareness among workers by procuring eco-friendly products and displaying environmental posters at construction sites[198]. - In 2019, Double-Trans Pte. Ltd. received the Environmental and Elegant Builder Award from the Construction Bureau, recognizing its efforts in creating safe and sustainable building environments[198]. - Vibration monitoring tools have been installed at construction sites to limit movement speed to 7 mm per second or below[199].
双运控股(01706) - 2020 - 年度财报