COVID-19 Impact and Recovery - The company faced significant impacts on its performance due to the COVID-19 pandemic, particularly in the construction sector, which was one of the hardest hit industries in Singapore [7]. - Despite the challenges, the company is optimistic about a rebound in 2021, supported by over SGD 300 million in project contracts [9]. - The company plans to expand its local market share while also attempting to restart overseas business initiatives that were postponed due to the pandemic [9]. - The management has taken proactive measures to mitigate risks and is preparing for potential uncertainties in the future [9]. - The company anticipates that productivity and demand in the construction industry will improve as the pandemic is brought under control [8]. - The company is committed to achieving a V-shaped recovery in its operational performance in 2021 [9]. - The government of Singapore has announced a vaccination timeline, which is expected to facilitate a return to normalcy in the construction sector [8]. - The company aims to strengthen its position in 2021 to reverse the poor performance of 2020, provided that COVID-19 does not resurge [47]. Financial Performance - The group’s revenue for the fiscal year decreased by 31.56%, from approximately SGD 215.5 million to approximately SGD 147.5 million due to the pandemic and circuit breaker measures [29]. - Gross profit fell by approximately 98.0%, from about SGD 25.96 million to SGD 0.402 million, with a gross margin decline of 11.78 percentage points to 0.27% [29]. - Other income increased by over SGD 6 million, primarily due to government subsidies to help businesses cover pandemic-related costs [30]. - Administrative expenses rose from approximately SGD 8.4 million to SGD 12.9 million, an increase of about SGD 4.5 million, mainly due to additional costs incurred during the shutdown [31]. - The company recorded a net loss after tax of approximately SGD 4.6 million, a decrease of SGD 19.4 million or about 131% compared to the previous period [33]. - The current ratio improved from 2.3 to 2.6, indicating a stable liquidity position [36]. - The debt-to-equity ratio increased from 11.8% to 20.2%, primarily due to temporary transitional loans provided by the Singapore government [37]. Project and Contract Updates - The company completed S$147 million in contract works during the fiscal year, down from S$215 million in the previous period [26]. - The company secured three new projects with a total contract value of S$179 million, compared to S$186 million in the previous period [26]. - The order book remains at a high level of S$356 million, supported by two large projects (REC and HDB C6) despite a decrease in new projects [26]. - The company is actively participating in tenders for new projects, with several large industrial projects expected to be awarded in Q1 2021 [26]. - The company successfully obtained a temporary occupancy permit for the North London Collegiate School, allowing operations to commence in January 2021 [26]. - The project completion date has been delayed to September 2021 due to COVID-19, with an expected increase in final construction costs [154]. Workforce and Employee Management - The company faced a 15% reduction in workforce due to COVID-19, significantly impacting project progress [25]. - Total employee costs for the fiscal year were approximately SGD 26 million, down from SGD 29 million in the previous year [45]. - The group employed 1,081 employees as of October 31, 2020, including foreign workers [44]. Corporate Governance - The board held four meetings during the fiscal year, including the approval of the annual performance announcement and the interim performance report for the six months ending April 30, 2020 [58]. - All directors attended 100% of the board meetings, with attendance recorded as 4/4 for each of the five active directors [60]. - The company adopted a board diversity policy, emphasizing the importance of diverse skills, experiences, and perspectives among board members [61]. - The audit committee, established on April 19, 2018, consists of three independent non-executive directors and is responsible for reviewing the integrity of financial statements and overseeing risk management [66][67]. - The company has committed to providing ongoing professional development for directors, ensuring they are well-informed about their responsibilities and the company's operations [60]. - The chairman and CEO roles are held by the same individual, Mr. Wang Yingde, which is noted as a deviation from corporate governance guidelines [63]. - The company has established four board committees to monitor various aspects of governance, including an audit committee and a remuneration committee [65]. Environmental and Social Responsibility - The company emphasizes ethical responsibility in its operations and has implemented measures to reduce environmental pollution [122]. - The company has a compliance program in place to adhere to applicable laws and regulations in Singapore, Cayman Islands, and Hong Kong [123]. - The company is committed to sustainable building practices, adhering to local environmental regulations and implementing green policies [193]. - The company has established an Environment, Health, and Safety (EHS) committee at all project sites to ensure compliance with environmental policies [190]. - The company actively monitors energy consumption data to prevent waste in construction projects [200]. - The company has set up annual environmental awareness activities involving all stakeholders to promote eco-friendly practices [190]. Shareholder and Capital Management - The company did not recommend any final dividend for the fiscal year [112]. - As of October 31, 2020, the company's distributable reserves were SGD 69.777 million in share premium and a cumulative loss of SGD (5.351) million [119]. - The company has maintained its capital development and operational balance in its dividend policy [101]. - The company will review its dividend policy periodically and may update it as deemed appropriate [103]. Risk Management - The board is responsible for assessing and determining the nature and extent of risks the company is willing to take to achieve strategic objectives [88]. - The company has engaged Virtus Assure Pte Ltd to review the effectiveness of its internal controls, with no significant concerns identified that could impact financial, operational, compliance, or risk management [91]. - The company has implemented monitoring procedures to ensure strict prohibition against unauthorized access and use of insider information [94].
HPC HOLDINGS(01742) - 2020 - 年度财报