Financial Performance - Revenue for the six months ended December 31, 2018, was SGD 5,583,189, a decrease of 32.9% from SGD 8,333,248 in the same period of 2017[4] - Gross profit for the same period was SGD 2,143,148, down 37.5% from SGD 3,438,841 year-on-year[4] - The net profit for the period was SGD 1,396,896, compared to SGD 1,492,904 in the previous year, reflecting a decrease of 6.4%[4] - Basic and diluted earnings per share were SGD 0.17, down from SGD 0.25 in the same period last year, representing a decline of 32%[4] - For the six months ended December 31, 2018, the pre-tax profit was SGD 1,700,799, a decrease of 13.8% from SGD 1,972,665 in the same period of 2017[11] - Operating cash flow before changes in working capital was SGD 1,537,463, down 23.8% from SGD 2,019,406 in the previous year[11] - The net cash generated from operating activities was SGD 713,607, a decline of 17.3% compared to SGD 862,612 in the prior period[11] - The group recorded a profit of approximately SGD 1.4 million for the six months ended December 31, 2018, compared to approximately SGD 1.5 million for the same period in 2017[61] Revenue Breakdown - Revenue from integrated design and construction services was SGD 5,317,012, down from SGD 8,127,702, indicating a decrease of about 34.5%[20] - Revenue from maintenance and other services was SGD 177,687, a slight decrease from SGD 194,648, reflecting a decline of approximately 8.7%[20] - Revenue from tools and materials sales increased significantly to SGD 88,490 from SGD 10,898, marking a growth of approximately 711.5%[20] - Revenue from Singapore accounted for 94.1% of total revenue, down from 99.1% in the previous year, indicating a diversification in revenue sources[23] - The group's revenue decreased from approximately SGD 8.3 million for the six months ended December 31, 2017, to approximately SGD 5.6 million for the six months ended December 31, 2018, representing a decline of about SGD 2.7 million or 33.0%[54] - Revenue from integrated design and construction services fell by approximately SGD 2.8 million or 34.6%, from approximately SGD 8.1 million to approximately SGD 5.3 million, primarily due to delays in the bidding process for several large projects[54] Expenses and Costs - Administrative expenses rose to SGD 717,644, up 69% from SGD 424,612 in the previous year[4] - The cost of services/sales decreased from approximately SGD 4.9 million to approximately SGD 3.4 million, a reduction of about SGD 1.5 million or 29.7%[55] - Gross profit for the six months ended December 31, 2018, was approximately SGD 2.1 million, down about 37.7% from approximately SGD 3.4 million for the same period in 2017[56] - The gross profit margin decreased to approximately 38.4% from approximately 41.3% due to more competitive pricing offered to secure new projects[56] - The total employee cost for the six months ended December 31, 2018, was approximately SGD 1.2 million, compared to SGD 1.0 million for the same period in 2017[69] Assets and Liabilities - Total assets as of December 31, 2018, were SGD 28,285,024, an increase from SGD 27,044,271 as of June 30, 2018[7] - The company's net asset value increased to SGD 27,078,266 from SGD 25,681,370, reflecting a growth of 5.4%[7] - Trade receivables decreased to SGD 3,121,515 from SGD 4,643,184, indicating a reduction of 32.7%[7] - The company reported total liabilities of SGD 883,595 as of December 31, 2018, slightly down from SGD 895,249 as of June 30, 2018[40] - Trade payables increased to SGD 512,788 as of December 31, 2018, compared to SGD 300,474 as of June 30, 2018[40] Cash Flow and Investments - The cash and cash equivalents at the end of the period amounted to SGD 21,986,099, significantly up from SGD 4,689,461 at the end of the previous year[11] - The net cash from investing activities was SGD 71,751, compared to a cash outflow of SGD 420 in the same period last year[11] - As of December 31, 2018, the group's total cash and bank balances were approximately SGD 21.8 million, up from approximately SGD 21.0 million as of June 30, 2018[62] Corporate Governance and Compliance - The company confirmed compliance with the corporate governance code as per the listing rules for the six months ending December 31, 2018[92] - All directors confirmed compliance with the code of conduct for securities transactions during the six months ending December 31, 2018[90] - The audit committee reviewed the unaudited condensed consolidated results for the six months ending December 31, 2018, and had no objections to the accounting principles adopted by the management[93] Strategic Focus and Future Outlook - The company is focusing on expanding its market presence and enhancing its product offerings to drive future growth[3] - The company is focused on providing integrated design and construction services in the healthcare sector, leveraging expertise in radiation protection engineering[12] - The company experienced delays in the bidding process for several large projects, impacting expected revenue[52] - The management emphasized the importance of risk management strategies, particularly in project execution, to mitigate potential losses[85] - The company plans to enhance operational efficiency, aiming for a reduction in costs by F% through process optimization[86]
HKE HOLDINGS(01726) - 2019 - 中期财报