Financial Performance - The company reported total revenue of approximately 27,300,000 SGD for the fiscal year ending March 31, 2020, a decrease of about 2,900,000 SGD from approximately 30,200,000 SGD in the previous fiscal year[19]. - Gross profit decreased from approximately 7,800,000 SGD in the previous fiscal year to about 4,400,000 SGD, primarily due to reduced revenue and additional project costs arising from new site safety regulations[19]. - The total comprehensive income for fiscal year 2020 was approximately SGD 1,600,000, an increase of about SGD 900,000 from SGD 700,000 in fiscal year 2019[41]. - The gross profit for fiscal year 2020 was approximately SGD 4,400,000, down from SGD 7,800,000 in fiscal year 2019, resulting in a gross profit margin of about 16.2%[36]. - Administrative expenses decreased to approximately SGD 3,900,000 from SGD 6,500,000 in fiscal year 2019, primarily due to one-time listing expenses[39]. - The company's income tax expense decreased to approximately SGD 300,000 from SGD 1,100,000 in fiscal year 2019[40]. - Revenue from gas pipeline projects increased by approximately SGD 11,300,000, while revenue from water pipeline projects decreased by about SGD 8,100,000, and cable installation revenue decreased by approximately SGD 6,100,000[30]. Assets and Liabilities - Total assets amounted to 44,960,000 SGD in 2020, down from 49,846,000 SGD in 2019[14]. - Total liabilities decreased significantly from 14,211,000 SGD in 2019 to 7,770,000 SGD in 2020[14]. - Total equity increased from 35,635,000 SGD in 2019 to 37,190,000 SGD in 2020, indicating a stronger financial position[14]. - Trade receivables increased to approximately SGD 5,500,000 from SGD 2,000,000 as of March 31, 2019, mainly due to non-refundable deposits related to the purchase of a new headquarters[45]. - Contract liabilities decreased to approximately SGD 500,000 from SGD 2,200,000 as of March 31, 2019, primarily due to the completion of several projects[46]. - Bank borrowings decreased from SGD 2,500,000 on March 31, 2019, to SGD 400,000 on March 31, 2020, primarily due to the repayment of short-term loans amounting to SGD 2,000,000[48]. - Lease liabilities reduced from SGD 1,500,000 on March 31, 2019, to SGD 900,000 on March 31, 2020, as a result of acquiring machinery worth SGD 700,000 and repayments of approximately SGD 1,300,000[49]. - The debt-to-equity ratio improved from 11.3% on March 31, 2019, to 4.1% on March 31, 2020, due to the repayment of bank borrowings and lease liabilities during the fiscal year[51]. - Total interest-bearing borrowings, including lease liabilities, bank borrowings, and lease liabilities, were approximately SGD 1,500,000, down from SGD 4,000,000 in the previous fiscal year[51]. - The current ratio was approximately 5.3 times as of March 31, 2020, compared to about 3.2 times in the previous fiscal year[51]. Operational Challenges - The company faced operational disruptions in Singapore due to COVID-19, which led to a temporary closure of its headquarters from April 7 to June 1, 2020[20]. - The construction industry impact from the pandemic remains difficult to quantify, posing challenges for future operations[20]. - The group experienced significant operational disruptions due to the COVID-19 pandemic, with a temporary closure from April 7 to June 1, 2020, leading to a decrease in construction contract revenue[70]. - As of the report date, Singapore was in the second phase of reopening, with the group implementing preventive measures to mitigate the impact of COVID-19 on its business[71]. - The company plans to adopt appropriate business strategies to navigate the ongoing challenges presented by the pandemic[21]. Customer Concentration - In the fiscal year 2020, approximately 96.3% of the company's total revenue came from its top five customers, an increase from 92.1% in the fiscal year 2019[109]. - The largest customer accounted for 72.6% of revenue, while the top five customers collectively represented 96.3% of total sales[132]. - The company has a significant customer concentration risk, as it does not have long-term agreements with its top five customers, which could impact its business if any major client reduces their projects[113]. Corporate Governance - The company has adopted all provisions of the corporate governance code as per the listing rules, except for the provision regarding the separation of the roles of Chairman and CEO[185]. - The board consists of three executive directors, one non-executive director, and three independent non-executive directors, ensuring a high level of independence[189]. - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee specific aspects of its affairs[186]. - All independent non-executive directors have confirmed their independence in accordance with the listing rules[192]. - The company has implemented a board diversity policy to comply with corporate governance code requirements[192]. - The board is responsible for the overall leadership and strategic decision-making of the company[186]. - The company has arranged appropriate liability insurance for directors against responsibilities arising from corporate activities[188]. Employee and Talent Management - The company has a strong focus on employee development, offering competitive compensation and career advancement opportunities to retain talent[111]. - The company faced challenges in recruiting and retaining skilled technical employees and foreign workers due to tightened policies and labor shortages in Singapore's infrastructure and construction sectors[115]. - The company has a total of 282 employees, with a compensation policy based on individual performance, qualifications, and experience[142]. - The company's compensation policy for employees is determined by management based on employees' merits, qualifications, and abilities[143]. - The board has established a remuneration committee to develop the compensation policy for the company and its senior management, considering the company's performance and individual contributions[146]. Future Outlook and Strategy - The company plans to adopt appropriate business strategies to navigate the ongoing challenges presented by the pandemic[21]. - Future outlook remains optimistic, with management expressing confidence in achieving sustainable growth driven by innovation and market demand[82]. - The company is considering strategic acquisitions to bolster its market position, with potential targets identified in the H sector[82]. - Market expansion plans include entering F new regions, which are projected to increase market share by G% over the next two years[82]. - New product launches are anticipated to contribute an additional $D million in revenue, with a focus on expanding the product line in the upcoming year[82]. - The company is investing in new technology development, allocating $E million towards R&D initiatives aimed at enhancing operational efficiency[82]. Shareholder Information - The company did not recommend a final dividend for the fiscal year 2020, consistent with the previous fiscal year[121]. - There were no distributable reserves available for distribution to shareholders as of March 31, 2020[120]. - The company has maintained a sufficient public float, with at least 25% of its issued shares held by the public as of the report's publication date[181]. - As of March 31, 2020, the company had issued 920,000,000 shares, with no changes in share capital during the fiscal year[118]. - The company confirmed the independence of all independent non-executive directors according to the listing rules[139]. Charitable Contributions - The company made charitable contributions of approximately SGD 31,000 during the fiscal year 2020, down from SGD 39,600 in the previous year[124].
卓航控股(01865) - 2020 - 年度财报