Financial Performance - Revenue for the six months ended April 30, 2021, increased by 27.81% to approximately SGD 116.90 million from approximately SGD 91.46 million in the corresponding period of 2020[11]. - Gross profit rose by approximately 29.13% from about SGD 7.36 million to SGD 9.50 million, with a stable gross margin of 8.13% compared to 8.05% in the previous period[11]. - The company recorded a net profit of approximately SGD 4.68 million, an increase of about 12.78% or SGD 0.53 million compared to the previous period[16]. - Revenue for the six months ended April 30, 2021, was SGD 116.901 million, an increase of 27.8% compared to SGD 91.462 million for the same period in 2020[61]. - Gross profit for the same period was SGD 9.504 million, representing a gross margin of 8.1%[61]. - The company reported a net profit of SGD 4.675 million, up from SGD 4.150 million in the previous year, reflecting a growth of 12.7%[61]. Order Book and Projects - The total contract value of two new projects, Ten League Warehouse and Global Indian International School, amounted to SGD 120.40 million, raising the order book to SGD 408.35 million as of April 30, 2021[7]. - The group has a robust order book valued at SGD 408.35 million as of April 30, 2021, providing flexibility to select better projects in the coming months[34]. - The construction demand in Singapore for 2021 is projected to be between SGD 23 billion and SGD 28 billion, with the public sector expected to account for 65% of this demand[31]. Financial Position and Liquidity - The current ratio improved to 2.5 as of April 30, 2021, compared to 2.2 as of October 31, 2020, indicating strong liquidity[19]. - Total assets as of April 30, 2021, were SGD 165.873 million, a decrease from SGD 172.075 million as of October 31, 2020[62][63]. - Current liabilities decreased to SGD 53.747 million from SGD 64.918 million, indicating improved liquidity[63]. - The company’s cash and cash equivalents were SGD 47.470 million, down from SGD 63.002 million, highlighting a reduction in cash reserves[62]. - The group received a temporary transitional loan of SGD 5 million from the Singapore government to assist with operational funding needs, with a term of five years[20]. Expenses and Costs - Administrative expenses decreased from approximately SGD 4.86 million to SGD 3.71 million, a reduction of about SGD 1.15 million due to the recovery of business activities[14]. - Total employee costs for the six months ended April 30, 2021, amounted to approximately SGD 13.8 million, a slight decrease from SGD 14.1 million in 2020[28]. - The company incurred material, subcontractor, and other construction costs amounting to SGD 95.677 million for the six months ended April 30, 2021, compared to SGD 72.528 million in the previous year[95]. Corporate Governance and Compliance - The audit committee reviewed the interim financial results for the six months ending April 30, 2021, and confirmed that the financial statements were prepared in accordance with applicable standards and regulations[42]. - The company has adopted and complied with all applicable provisions of the Corporate Governance Code, except for the separation of roles between the Chairman and the CEO, which is currently held by the same individual[40]. - The company has confirmed compliance with the Securities Trading Code for directors during the six-month period ending April 30, 2021[38]. Share Capital and Dividends - The company did not declare any interim dividend for the six months ended April 30, 2021[17]. - The company has adopted a share option scheme allowing the issuance of up to 160 million shares, representing 10% of the shares listed on the Hong Kong Stock Exchange[36]. - The company’s issued and paid-up share capital remained at SGD 2,725,000 with 1,600,000 shares as of April 30, 2021[161]. Debt and Borrowings - The group's total borrowings as of April 30, 2021, resulted in a debt-to-equity ratio of 18.24%, down from 20.24% on October 31, 2020, primarily due to timely repayment of borrowings[20]. - The total borrowings as of April 30, 2021, were SGD 13,945,000, slightly down from SGD 14,780,000 as of October 31, 2020[156]. - The company has a total of SGD 12,269,000 in non-current borrowings, which decreased from SGD 13,104,000 in the previous year[156]. Employee and Health Measures - As of the report date, nearly 42% of the group's employees have been vaccinated against COVID-19, with an expectation to reach 100% vaccination by the end of August 2021[30]. Cash Flow and Investments - Operating cash flow before changes in working capital decreased to SGD 3,558,000 in 2021 from SGD 6,695,000 in 2020, reflecting a decline of approximately 47%[66]. - The company experienced a net cash outflow of SGD 15,532,000 in the six months ended April 30, 2021, compared to a net cash inflow of SGD 17,110,000 in the same period of 2020[67]. - Interest income increased to SGD 428,000 in 2021 from SGD 75,000 in 2020, suggesting improved financial management or investment returns[66]. Trade Receivables and Credit Management - Trade receivables increased to SGD 56,610,000 as of April 30, 2021, compared to SGD 44,886,000 as of October 31, 2020, representing a growth of approximately 26.5%[117]. - The provision for expected credit losses on trade receivables increased to SGD 4,150,000 as of April 30, 2021, from SGD 1,150,000 as of October 31, 2020[126]. - The overdue but not impaired trade receivables amounted to SGD 20,198,000 as of April 30, 2021, down from SGD 22,643,000 as of October 31, 2020, indicating a decrease of approximately 10.8%[124].
HPC HOLDINGS(01742) - 2021 - 中期财报