Financial Performance - For the Review Year, the Group's revenue was approximately S$7.6 million, a decrease of approximately S$2.8 million, or 26.5%, compared to S$10.4 million for the year ended 30 June 2019[23]. - The gross profit for the Group was approximately S$1.4 million, with a profit before taxation of approximately S$0.2 million[15]. - The Group's gross profit was approximately S$1.4 million for the Review Year, with a gross profit margin of approximately 18.9%, down from 35.5% in the previous year[33]. - Revenue from integrated design and building services was approximately S$7.2 million, a decrease of approximately S$2.8 million, or 28.3%, compared to approximately S$10.0 million for the year ended 30 June 2019[27]. - Other income for the Review Year was approximately S$0.6 million, or 7.6% of revenue, compared to approximately S$0.5 million, or 4.7% of revenue for the year ended 30 June 2019[35]. - Administrative expenses increased by approximately S$0.7 million, or 46.3%, to approximately S$2.1 million, representing 27.2% of revenue for the Review Year[37]. - The Group recorded a profit of approximately S$0.1 million for the Review Year, down from approximately S$2.3 million for the year ended 30 June 2019[39]. - Total shareholders' funds amounted to approximately S$28.5 million as at 30 June 2020, compared to approximately S$27.9 million as at 30 June 2019[40]. - As at 30 June 2020, the Group had current assets of approximately S$29.7 million, including cash and cash equivalents of approximately S$25.2 million[41]. - The Group's current ratio as at 30 June 2020 was 15.7, down from 22.4 in the previous year[41]. - The gearing ratio was at 0.2% as at 30 June 2020, compared to 0.0% as at 30 June 2019[41]. - Total staff costs for the Review Year amounted to approximately S$2.8 million, compared to approximately S$2.7 million in 2019, reflecting a year-on-year increase of about 3.7%[60]. Market Outlook - The Singapore government plans to open four new polyclinics over the next two years, which is expected to increase medical shielding construction work for the Group[16]. - Higher development expenditure in FY2020 is budgeted for major projects such as Woodlands Health Campus and Singapore General Hospital Emergency Medicine Building[24]. - The demand for health and aged care services is expected to continue increasing as Singapore's population ages[24]. - New clean rooms and radiology-related facilities are generally required in new healthcare facilities, driving demand for medical-related radiation shielding works[24]. - The Group aims to explore emerging building technologies to strengthen its market position in the medical and healthcare sectors[17]. - The Group remains optimistic about future growth despite the challenges faced during the Review Year[16]. Corporate Governance - The company is committed to high standards of corporate governance to safeguard shareholder interests and enhance corporate value[116]. - The company adopted all code provisions in the Corporate Governance Code as its own code on corporate governance practices[116]. - During the Review Year, the company complied with the code provisions set out in the CG Code, except for code provision A.2.1[117]. - The roles of chairman and chief executive officer are currently held by Mr. Wu An Ming since October 18, 2019, which deviates from the CG Code provision A.2.1[118]. - The Board believes that Mr. Wu's experience in construction, real estate, financial services, and medical health enhances overall business planning and decision-making efficiency[120]. - The Board will continue to review the appropriateness of separating the roles of chairman and chief executive officer based on the Group's circumstances[121]. - The Board comprises two executive directors and three independent non-executive directors, ensuring a balance of experience and independence[124]. - The Company has complied with the corporate governance code, except for the aforementioned deviation regarding the dual roles[120]. - The Board is responsible for overseeing business development, project management, and evaluating the Group's financial performance[123]. - The Board meets regularly to monitor business development and financial performance, ensuring timely project delivery within budget[123]. - The Company has received annual confirmations of independence from each independent non-executive director, ensuring compliance with the Listing Rules[132]. - The Board has established committees to delegate certain management functions and enhance corporate governance[123]. - The Company has appointed independent non-executive directors, with at least one possessing appropriate professional qualifications or relevant financial management expertise[133]. - The term of appointment for non-executive directors is one year, subject to re-election, with a requirement for one-third of all directors to retire by rotation at each annual general meeting[134]. - The Remuneration Committee comprises one executive director and two independent non-executive directors, focusing on establishing a transparent remuneration policy[144]. - The Remuneration Committee reviewed the Company's remuneration policy and structure during the Review Year[149]. - The Nomination Committee assists the Board in making recommendations on the appointment and reappointment of Directors, considering various factors including integrity, experience, and diversity[157]. - Each executive director has a service agreement for a term of three years, while independent non-executive directors have an initial term of one year, continuing year to year[159]. - All Directors are subject to retirement by rotation and re-election at the annual general meeting in accordance with the Articles of Association[159]. - The Company adopted the Model Code for Securities Transactions by Directors, ensuring compliance by all Directors during the Review Year[141]. - Continuous professional development activities were recorded for directors, focusing on corporate governance code and related Listing Rules[137]. - The Company has established a formal and transparent procedure for developing remuneration policy, referencing industry performance and current market practices[147]. - The Company established an Audit Committee comprising three Independent Non-Executive Directors (INEDs) to oversee financial reporting and internal controls[170]. - During the Review Year, the Audit Committee reviewed the Group's accounting principles and practices, including audited financial statements and compliance with the Corporate Governance Code[172]. - The remuneration paid to the auditor for the annual audit fee was approximately S$240,000, with no fees for non-audit services[177]. - The Company adopted a board diversity policy to enhance the effectiveness of the Board by considering factors such as gender, age, and professional experience[179]. - The Nomination Committee assessed the independence of INEDs and reviewed the structure and composition of the Board during the Review Year[166]. - Directors are required to retire by rotation at least once every three years, ensuring a refresh of the Board's composition[164]. - The Company acknowledges its responsibility for preparing financial statements that provide a true and fair view of its financial position[173]. - The Audit Committee is responsible for developing and reviewing the Company's corporate governance policies and practices[171]. - The Company has a policy to ensure that all Directors are subject to re-election at the annual general meeting[165]. - The Nomination Committee conducted a thorough due diligence process for proposed Board candidates during the Review Year[168]. Risk Management - The Company aims to develop a robust risk management and internal control system to manage operational and financial risks, ensuring the safeguarding of shareholder interests and assets[181]. - The Board acknowledges its responsibility for maintaining effective risk management and internal control systems, ensuring compliance with relevant rules and regulations[183]. - An external internal control reviewer is engaged annually to assess and improve any material deficiencies in control, with findings reported to the Audit Committee[185]. - The Company does not currently have an internal audit function, considering its simple corporate structure and operations in a single geographical location[191]. - The risk management and internal control systems are designed to manage risks rather than eliminate them, providing reasonable assurance against material misstatement or loss[189]. - The management regularly reviews and assesses the risk management and internal control systems, identifying significant risks and resolving internal control defects[185]. - The Company will periodically review the need for an internal audit function based on its operational structure[193]. - The Board will regularly review the diversity policy to ensure its appropriateness and track progress towards achieving diversity goals[182]. Strategic Focus - The Group specializes in radiation shielding works and provides integrated design and building services for hospitals and clinics in Singapore[22]. - The company has a strategic focus on expanding its real estate development and financial leasing businesses in both domestic and international markets[81]. - The management team is committed to enhancing operational efficiency and strategic decision-making to drive future growth[78][81]. - The company is exploring new strategies for market expansion and potential acquisitions to strengthen its competitive position[76][81]. - The Group had no significant investments or material acquisitions during the Review Year[57]. - The Group has not provided guarantees to any customers as of June 30, 2020, maintaining a risk-averse approach[64]. - The Group's liquidity position is closely monitored by the Board to ensure it meets funding requirements[51]. - The Group manages foreign exchange risk by closely monitoring currency rate movements, as it transacts mainly in Singapore dollars[56]. - The Group plans to utilize the unutilized net proceeds for acquisitions and operational enhancements by June 30, 2021[74]. - The company is considering several property agency offers to determine the best location and price for acquiring new properties as of June 30, 2020[76].
HKE HOLDINGS(01726) - 2020 - 年度财报