Financial Performance - The company's revenue for the fiscal year 2019 increased by 1.7% to approximately SGD 111.1 million, compared to SGD 109.3 million in the fiscal year 2018[14]. - The net profit after tax for fiscal year 2019 was approximately SGD 8.7 million, representing a 51.2% increase from about SGD 5.8 million in fiscal year 2018[14]. - Earnings per share grew by 47.1% to SGD 0.0203, while the net asset value per ordinary share increased by 8.9% to SGD 0.2369[14]. - The group reported a gross profit of SGD 27.414 million in 2019, compared to SGD 28.890 million in 2018[58]. - The group's operating profit before tax increased from SGD 6.206 million in 2018 to SGD 8.926 million in 2019[58]. - The group's profit before tax for FY2019 was approximately SGD 8.9 million, compared to about SGD 6.2 million in FY2018, representing an increase of 43.5%[74]. - Net profit for FY2019 was approximately SGD 8.7 million, an increase of 51.2% from SGD 5.8 million in FY2018[74]. - The group recorded a revenue growth of 1.7% in the fiscal year 2019, primarily driven by residential properties under the space optimization business and facility management services[59]. Property Management and Occupancy - The average occupancy rates for industrial and commercial properties were 87.9% and 90.8%, respectively, during fiscal year 2019[15]. - The property at 31 Boon Lay Drive achieved over 90% occupancy, exceeding expectations for occupancy and revenue targets[17]. - The average occupancy rate for the group's industrial properties slightly decreased by 0.9 percentage points to approximately 87.9% in the fiscal year 2019, compared to 88.8% in the fiscal year 2018[63]. - The average occupancy rate for commercial properties increased by 4.6 percentage points to approximately 90.8% in FY2019, compared to 86.2% in FY2018[64]. Acquisitions and Expansion - The company successfully acquired a new industrial property and secured three new residential property leases during the fiscal year[15]. - A new industrial property was acquired at 71 Lorong 23 Geylang, Singapore, and was quickly renovated to operate under the Work+Store brand[15]. - The company aims to acquire another industrial property through a joint venture to expand its Work+Store facilities in Singapore[18]. - The group completed the acquisition of a new industrial property and secured three new leases for residential properties during the fiscal year 2019[59]. - The acquisition of the Geylang property was completed for SGD 18 million (approximately HKD 26.8 million), funded through a combination of internal resources and bank borrowings[59]. - The group has signed a 15-year lease agreement to establish a mixed-use space business in Quanzhou, Fujian Province, China, as part of its expansion strategy[61]. Logistics and Services - The logistics services segment reported a revenue growth of 12.3%, driven by increased demand for transportation services and container leasing in Thailand[20]. - The logistics services are currently provided in Singapore and Malaysia, with container yard management services in Singapore and Thailand[6]. - The company operates four parking facilities in Hong Kong and has expanded its logistics solutions to include transportation services[11]. - The company plans to expand its logistics business in the ASEAN region by establishing a new container yard in Myanmar[21]. - The logistics services revenue rose by approximately SGD 2.7 million (or 12.3%) to about SGD 24.9 million in FY2019, attributed to increased demand for transportation services and container leasing in Thailand[72]. Community and Environmental Commitment - The group has a strong commitment to community involvement, with leadership roles in various local organizations[40][41]. - The company has installed solar panels on multiple buildings, including the roof of the property at 38 Ang Mo Kio, to supplement energy consumption from the grid[98]. - The company has implemented energy-efficient practices, such as using energy-saving bulbs with dynamic sensors and timers, to reduce electricity waste[97]. - The company has achieved BIZSAFE LEVEL 3 CERTIFICATE and ISO 9001:2015 certification for its facility management services, indicating a commitment to quality and safety[99]. - The company has made significant strides towards renewable energy, with solar panels installed to reduce environmental impact[97]. - The group is dedicated to community engagement, supporting various initiatives such as providing meals and gifts to orphans and donating food to over 130 beneficiaries[96]. Governance and Management - The group has established a robust governance structure with various committees to ensure compliance and strategic direction[42][43][44]. - The board includes independent directors with significant expertise in capital markets, corporate finance, and real estate, enhancing governance and strategic oversight[42][43][44]. - The company is committed to maintaining good corporate governance in accordance with the Singapore Exchange and Hong Kong listing rules[89]. - The board has established a power mechanism for approving significant transactions, including investments, mergers, acquisitions, and major capital expenditures[112]. - The audit committee consists of three independent non-executive directors, ensuring no conflicts of interest with external auditors[189]. - The company has adopted a disclosure policy to handle insider information in compliance with relevant regulations[188]. Employee Development and Remuneration - The group emphasizes employee development and engagement as key to business success, providing continuous learning opportunities[91]. - The remuneration committee is composed entirely of independent non-executive directors, ensuring objectivity in compensation decisions[158]. - The total director remuneration was proposed to be SGD 192,000, to be paid quarterly, pending shareholder approval[159]. - The performance indicators for the group's compensation policy are linked to customer retention and financial performance[164]. - The stock option plan was adopted on September 25, 2017, to align the interests of employees with those of shareholders[169]. Financial Management and Risk Assessment - The company has established procedures to identify major business risks and assess potential financial impacts[184]. - The internal control system aims to ensure the integrity and reliability of financial information and protect the company's assets[184]. - The audit committee reviewed the adequacy and effectiveness of the internal control systems, including financial and operational controls[184]. - The company does not foresee any significant uncertainties that could impact its ongoing viability[182]. - The risk management and internal control systems are deemed sufficient and effective for the fiscal year 2019[186].
LHN(01730) - 2019 - 年度财报