Financial Performance - Total revenue for the fiscal year 2019 increased by approximately SGD 58,000 or 0.2% to about SGD 34.0 million compared to the fiscal year 2018[10]. - Profit attributable to equity holders for the fiscal year 2019 was approximately SGD 3.2 million, representing an increase of about SGD 0.1 million or 5.1% from SGD 3.1 million in fiscal year 2018[11]. - The group's total revenue for the fiscal year 2019 was approximately SGD 34.0 million, a slight increase of about SGD 58,000 or 0.2% from SGD 33.94 million in 2018[51]. - The net contract amount for 2019 was SGD 15.972 million, up from SGD 8.462 million in 2018, indicating a significant growth in contract revenue[52]. - The gross profit for 2019 decreased by SGD 1.0 million or 7.7% to approximately SGD 12.7 million, with a gross profit margin of 37.2% compared to 40.3% in 2018[54]. - The group's selling costs for 2019 were approximately SGD 21.4 million, an increase of SGD 1.1 million from SGD 20.3 million in 2018, primarily due to increased subcontractor costs[53]. - Other income for 2019 was approximately SGD 143,000, a decrease of about SGD 55,000 from SGD 198,000 in 2018, mainly due to reduced government grants[57]. - Administrative expenses for 2019 were approximately SGD 8.1 million, down by SGD 1.3 million from SGD 9.4 million in 2018, attributed to reduced listing expenses[58]. - The financing costs for 2019 were approximately SGD 513,000, a slight increase of SGD 8,000 from SGD 505,000 in 2018[59]. - The income tax expense for 2019 was approximately SGD 0.8 million, a decrease of SGD 0.5 million from SGD 1.3 million in 2018, due to higher corporate tax refunds[60]. Market Outlook - The demolition services market in Singapore is projected to grow at a compound annual growth rate of approximately 6.1% from 2019 to 2023, driven by upcoming reconstruction projects and demand for demolition services[14]. - The company expresses optimism about the demolition services market outlook and is committed to expanding its operational scale to maximize shareholder returns[16]. - The group aims to strengthen its market position and contribute to sustainable growth in land redevelopment in Singapore, given the optimistic economic outlook[15]. - The company aims to leverage the expected growth in the demolition market to enhance its operational capabilities and market position[14]. Operational Developments - The company undertook 23 different types of demolition projects in Singapore during fiscal year 2019, completing 17 projects[11]. - An investment of SGD 2.9 million was made in purchasing excavators with varying capacities, including a 48.5-meter high excavator, expected to enhance profitability and financial performance[11]. - The company anticipates total revenue of approximately SGD 10 million from ongoing projects that are progressing as scheduled[11]. - The group aims to consolidate its position as a leading demolition service provider in Singapore and plans to invest in upgrading machinery and equipment to capture more demolition projects[48]. - The group continues to expand its operational capabilities and enhance its management structure to support future growth[45]. Corporate Governance - The board of directors is committed to maintaining high corporate governance standards and has adopted the principles and relevant code provisions of the Corporate Governance Code[169]. - The company has deviated from the Corporate Governance Code by having the roles of Chairman and CEO held by the same individual, Tan Chee Beng, which the board believes is in the best interest of the group[170]. - The board consists of three executive directors, one non-executive director, and three independent non-executive directors, ensuring strong independence[170]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific aspects of the company's affairs[197]. - The Audit Committee comprises three independent non-executive directors, with the chairman possessing appropriate professional qualifications and financial expertise as per Listing Rule 3.21[199]. Human Resources - The group had a total of 130 employees as of December 31, 2019, an increase of 1 from the previous year[75]. - The group has maintained effective employee and compensation policies in compliance with local regulations in Singapore[89]. - The group plans to expand its workforce by hiring project management and execution personnel, with an allocation of 11.8% of the net proceeds for this purpose[109]. - The group reported no significant disputes with suppliers or customers during the 2019 financial year, indicating stable operational conditions[91]. Financial Position - As of December 31, 2019, the group's net current assets were approximately SGD 27.0 million, a significant increase of SGD 21.8 million or 419.2% from SGD 5.2 million on December 31, 2018, primarily due to the receipt of listing proceeds and repayment of trade and other payables, borrowings, and lease liabilities[65]. - The total equity attributable to the company's equity holders was approximately SGD 51.5 million as of December 31, 2019, compared to SGD 30.1 million as of December 31, 2018[66]. - The debt-to-equity ratio decreased from 67.5% on December 31, 2018, to 27.1% on December 31, 2019, due to a significant reduction in bank borrowings and lease liabilities, along with an increase in reserves from issuing shares[67]. - Cash and cash equivalents increased to approximately SGD 14.1 million as of December 31, 2019, from SGD 3.0 million as of December 31, 2018, mainly due to listing proceeds[65]. Environmental and Social Responsibility - The group has adopted an environmental management system certified to ISO 14001:2015 standards since 2016, focusing on pollution control and resource conservation[101]. - The group’s environmental compliance costs for the past three years were approximately SGD 1.9 million, SGD 1.7 million, and SGD 2.0 million respectively[101]. - The company did not make any charitable donations during the fiscal year 2019[112]. Shareholder Information - The group has no preset dividend payout ratio, with the board deciding on dividends based on various financial factors[94]. - As of December 31, 2019, TCB held 491,700,000 shares, representing 49.17% of the total shares issued[143]. - K.Luxe Holdings Limited owned 163,900,000 shares, accounting for 16.39% of the total shares issued[143]. - The company has adopted a share option scheme effective from October 15, 2019, which will be valid for ten years[150]. - Under the share option scheme, the maximum number of shares that can be issued shall not exceed 10% of the total shares issued at the time of listing[150]. Risk Management - The group faces foreign exchange risks primarily due to cash and cash equivalents, trade receivables, and payables denominated in USD and HKD, with potential impacts of approximately SGD 20,000 on net profit and equity from a 4% fluctuation in exchange rates[80]. - The group had no significant contingent liabilities or outstanding debts as of December 31, 2019[72]. Recent Developments - The group did not experience any significant business interruptions due to COVID-19, and there was no major adverse impact on the consolidated financial statements for the year ended December 31, 2019[165]. - The consolidated financial statements for the year ended December 31, 2019, have been audited by PricewaterhouseCoopers, and a resolution will be proposed at the upcoming annual general meeting to reappoint them as auditors[167].
BENG SOON MACH(01987) - 2019 - 年度财报