Financial Performance - Revenue for the six months ended December 31, 2019, was S$4,625,426, a decrease of 17.2% compared to S$5,583,189 for the same period in 2018[8]. - Gross profit for the same period was S$1,509,541, down 29.5% from S$2,143,148 in 2018[8]. - Profit for the period was S$691,499, representing a decline of 50.5% from S$1,396,896 in the previous year[8]. - Total comprehensive income for the period was S$657,678, compared to S$1,396,896 in the corresponding period of 2018[8]. - Basic and diluted earnings per share were 0.08 cents, down from 0.17 cents in the previous year[8]. - Total other income for the six months ended December 31, 2019, was S$217,467, a decrease from S$239,805 in 2018, representing a decline of approximately 9.5%[68]. - The profit before taxation for the six months ended December 31, 2019, was impacted by finance costs of S$852 and depreciation expenses totaling S$46,871[73]. - Current tax expense for the period was S$92,679, significantly lower than S$303,512 in the same period of 2018, indicating a reduction of approximately 69.5%[76]. - Profit attributable to the owners of the company for the six months ended December 31, 2019, was S$657,678, a decrease of approximately 52.8% from S$1,396,896 in 2018[80]. - Total staff costs for the period amounted to S$1,127,925, a decrease from S$1,220,943 in 2018, representing a reduction of about 7.6%[73]. Assets and Liabilities - Total non-current assets increased to S$754,045 as of December 31, 2019, from S$728,723 as of June 30, 2019[9]. - Total current assets rose to S$29,406,538, compared to S$28,514,583 as of June 30, 2019[9]. - Net assets increased to S$28,601,659 from S$27,943,981 as of June 30, 2019[9]. - Trade receivables decreased to S$2,364,506 from S$3,399,887 in the previous period[9]. - Cash and cash equivalents increased to S$24,239,765 from S$22,464,228 as of June 30, 2019[9]. - As of December 31, 2019, the total equity attributable to owners of the Company was S$28,601,659, an increase from S$27,943,981 as of June 30, 2019, representing a growth of approximately 2.36%[11]. - The accumulated profits as of December 31, 2019, were S$10,947,261, up from S$10,255,762 as of June 30, 2019, indicating an increase of about 6.73%[11]. - The Group's total liabilities, including trade and other payables, reached S$1,124,619 as of December 31, 2019, up from S$766,057 as of June 30, 2019[90]. Cash Flow - Operating cash flows before working capital changes for the six months ended December 31, 2019, were S$702,206, down from S$1,520,692 for the same period in 2018, a decline of about 53.8%[15]. - Net cash generated from operating activities for the six months ended December 31, 2019, was S$1,689,701, compared to S$696,836 for the same period in 2018, showing an increase of approximately 142.7%[15]. - Cash and cash equivalents at the end of the period were S$24,239,765, up from S$21,986,099 at the end of 2018, representing an increase of about 10.2%[17]. Business Operations - The Company’s principal operating subsidiary, Hwa Koon Engineering Pte. Ltd., focuses on integrated design and building services in the medical and healthcare sectors, particularly in radiation shielding works[19]. - The company’s main business operations are in the healthcare sector, providing integrated design and construction services[22]. - The Group specializes in the medical and healthcare sectors, providing integrated design and building services for hospitals and clinics in Singapore[105]. Corporate Governance - The company has complied with the Corporate Governance Code, except for the separation of the roles of chairman and CEO, which are held by Mr. Chen[163]. - The company has adhered to the Corporate Governance Code, with a noted deviation regarding the roles of Chairman and CEO being held by the same individual, which the board believes ensures effective strategic planning[166][168]. - The company has maintained the prescribed public float under the Listing Rules as of the report date[169]. Lease Accounting - The application of IFRS 16 "Leases" has been adopted for the first time in the current interim period, replacing IAS 17[31]. - Right-of-use assets are recognized at the commencement date of the lease and measured at cost, less any accumulated depreciation and impairment losses[32]. - The Group recognizes lease liabilities at the present value of unpaid lease payments at the lease commencement date[37]. - Lease payments include fixed payments, variable payments based on an index, and amounts expected under residual value guarantees[38]. - The Group has applied IFRS 16 retrospectively, recognizing cumulative effects at the date of initial application, July 1, 2019, without restating comparative information[49]. Employee and Management Information - Total compensation for key management personnel was S$263,003 for the six months ended December 31, 2019, down from S$411,461 in the same period of 2018[102]. - The Group employed a total of 43 full-time employees as of December 31, 2019, an increase from 40 full-time employees as of December 31, 2018[139]. Shareholder Information - As of December 31, 2019, Mr. Chen held 600,000,000 shares, representing 75% of the issued share capital[148]. - Eagle Fortitude Limited, owned 100% by Mr. Chen, also holds 600,000,000 shares, equating to 75% of the issued share capital[159]. - The company has not granted any share options since the adoption of the share option scheme on March 15, 2018[162].
HKE HOLDINGS(01726) - 2020 - 中期财报