Financial Performance - Revenue for the six months ended June 30, 2019, was approximately SGD 5.0 million, a decrease of about 55.9% compared to SGD 11.3 million for the same period in 2018[5] - Profit for the six months ended June 30, 2019, was approximately SGD 6,000, compared to a loss of approximately SGD 0.2 million for the same period in 2018[5] - Earnings per share attributable to owners of the company for the six months ended June 30, 2019, was approximately SGD 0.0006, compared to a loss per share of approximately SGD 0.02 for the same period in 2018[5] - Gross profit for the six months ended June 30, 2019, was SGD 1.545 million, down from SGD 5.180 million in the same period of 2018[8] - The company reported a net financing income of SGD 88,000 for the six months ended June 30, 2019, compared to a net financing cost of SGD 45,000 in the same period of 2018[8] - Other comprehensive income for the six months ended June 30, 2019, was SGD 7,000, compared to a loss of SGD 156,000 for the same period in 2018[10] - The company reported a net profit of 6 thousand SGD for the period, compared to a loss of 157 thousand SGD in the same period of 2018[14] - The group recorded an operating loss of approximately 64,000 SGD for the six months ended June 30, 2019, compared to an operating profit of about 400,000 SGD in the same period of 2018, primarily due to a revenue decrease of approximately 6.3 million SGD[89] Assets and Liabilities - Total assets as of June 30, 2019, were SGD 44.889 million, compared to SGD 45.456 million as of December 31, 2018[12] - Total equity attributable to owners of the company was SGD 39.399 million as of June 30, 2019, compared to SGD 39.653 million as of December 31, 2018[12] - Non-current assets included property, plant, and equipment of SGD 12.934 million as of June 30, 2019, down from SGD 13.387 million as of December 31, 2018[12] - Current liabilities decreased to SGD 2.720 million as of June 30, 2019, from SGD 4.363 million as of December 31, 2018[12] - As of June 30, 2019, total lease liabilities amounted to SGD 2.11 million, significantly up from SGD 0.38 million as of December 31, 2018[70] - The debt-to-equity ratio as of June 30, 2019, was 0.06, compared to 0.02 on December 31, 2018, primarily due to lease liabilities increasing from approximately 0.4 million SGD to about 2.1 million SGD[100] Cash Flow - Net cash generated from operating activities for the six months ended June 30, 2019, was 2,316 thousand SGD, down from 5,270 thousand SGD in the same period of 2018, representing a decline of approximately 56%[16] - Cash and cash equivalents decreased by 598 thousand SGD, ending at 14,883 thousand SGD as of June 30, 2019, compared to 15,481 thousand SGD at the beginning of the year[16] - The company incurred a total cash outflow from investing activities of 2,670 thousand SGD for the six months ended June 30, 2019, compared to 2,288 thousand SGD in the previous year[16] - For the six months ended June 30, 2019, net cash generated from operating activities was approximately 2.3 million SGD, while net cash used in investing activities was about 2.7 million SGD[101] Revenue Sources - Revenue from sales of sheet metal products was SGD 4.89 million, accounting for 98.5% of total revenue, while precision engineering services contributed SGD 77, representing 1.5%[83] - The decline in revenue was primarily attributed to a decrease in orders for sheet metal products related to semiconductor manufacturing due to the US-China trade war and market deterioration[77] - Customer A contributed 542 thousand SGD to total revenue in 2019, down from 6,562 thousand SGD in 2018, while Customer B contributed 4,091 thousand SGD, up from 3,856 thousand SGD[52] Expenses - Cost of goods sold for the six months ended June 30, 2019, was 3,425 thousand SGD, compared to 6,099 thousand SGD in 2018, indicating a reduction of approximately 44%[55] - Employee benefits expenses, including director remuneration, were 2,060 thousand SGD for the six months ended June 30, 2019, slightly down from 2,098 thousand SGD in 2018[55] - Administrative expenses decreased by approximately 3.3 million SGD or 67.2% from about 4.9 million SGD in the six months ended June 30, 2018, to approximately 1.6 million SGD in the same period of 2019, mainly due to non-recurring listing expenses[88] Financial Risks and Governance - The company faces various financial risks, including market risk, credit risk, and liquidity risk, which are consistent with those disclosed in the annual financial statements[46] - The financial risk management policies have not changed since the end of the last fiscal year[47] - The company has not adopted any hedging arrangements to mitigate foreign exchange risks, which may impact its financial performance[113] - The company has complied with the corporate governance code, with the exception of the separation of the roles of Chairman and CEO[124] Shareholder Information - As of June 30, 2019, major shareholders KAL SG and KYL SG each hold 301,000,000 shares, representing 30.1% of the issued share capital[120] - Directors and key executives, including Mr. Chok Chung-fok and Ms. Wong Yuet-lin, also hold 301,000,000 shares each, accounting for 30.1% of the issued share capital[120] Future Plans - The company plans to enhance production capacity by upgrading machinery and robotic technology while actively seeking new customers[79] - The company aims to diversify its profit base and explore different investment opportunities to create sustainable returns for shareholders[80]
FSM HOLDINGS(01721) - 2019 - 中期财报