Financial Performance - The group's revenue for the first half of 2020 was approximately SGD 3.7 million, a decrease of about 78.3% compared to SGD 16.9 million in the first half of 2019 due to the significant adverse impact of COVID-19[46]. - Revenue for the six months ended June 30, 2020, was SGD 3,667,624, a decrease of 78.2% compared to SGD 16,882,189 in the same period of 2019[131]. - Gross loss for the period was SGD 5,621,598, compared to a gross profit of SGD 6,007,825 in the previous year[131]. - The group completed four demolition projects in the first half of 2020, a reduction of 11 projects compared to the first half of 2019[39]. - The gross profit margin fell from approximately 35.6% in the first half of 2019 to a negative 153.3% in the first half of 2020[56]. - The company reported a loss attributable to equity holders of approximately SGD 9.3 million for the first half of 2020, a decrease of SGD 10.1 million or 1,210.4% compared to a profit of SGD 0.8 million in the same period of 2019[63]. - Basic loss per share for the six months ended June 30, 2020, was SGD (0.93), compared to earnings of SGD 0.11 per share in 2019[192]. Project and Operational Updates - The company completed four demolition projects in the first half of 2020, with total confirmed revenue of SGD 9,663 thousand[20]. - As of June 30, 2020, the company had eight ongoing demolition projects, with a cumulative confirmed revenue of SGD 10,000 thousand[27]. - The estimated completion date for ongoing projects includes August 31, 2020, for a project with confirmed revenue of SGD 894 thousand[29]. - The company focuses on demolition services for various structures, including power plants and high-rise buildings, with over 26 years of experience[17]. - The company aims to expand its market presence in both public and private sectors through strategic project acquisitions[17]. Financial Position and Assets - The net current assets of the group decreased significantly by approximately SGD 7.3 million or 27.0% to about SGD 19.7 million as of June 30, 2020, compared to SGD 27.0 million on December 31, 2019[68]. - Cash and cash equivalents were approximately SGD 8.6 million as of June 30, 2020, down from SGD 14.1 million on December 31, 2019, primarily used for working capital purposes[69]. - Total assets as of June 30, 2020, were SGD 58,987,818, down from SGD 71,321,664 as of December 31, 2019, representing a decrease of 17.3%[134]. - Total equity attributable to the company's equity holders was SGD 42,232,509, down from SGD 51,503,096, reflecting a decline of 18.0%[134]. - The total capital as of June 30, 2020, was SGD 46,108,122, down from SGD 51,338,517 as of December 31, 2019[152]. Corporate Governance and Management - The company appointed a new director, Wang Dongfeng, on July 24, 2020, to enhance its management expertise[17]. - The board is committed to maintaining high standards of corporate governance and has complied with the corporate governance code during the first half of 2020[117]. - The board believes that having the same individual serve as both Chairman and CEO enhances operational efficiency and business strategy execution[123]. - The audit committee, consisting of three independent non-executive directors, reviewed and approved the interim financial results, ensuring compliance with applicable accounting standards[128]. Impact of COVID-19 - The group aims to maintain sufficient cash reserves despite the negative impact of COVID-19 on operations and financial conditions[43]. - The group is focusing on automation to reduce reliance on foreign workers in response to challenges posed by COVID-19[40]. - The group anticipates that future opportunities and challenges will continue to be affected by the uncertainty surrounding the COVID-19 pandemic[43]. - The group recorded other income of SGD 0.6 million in the first half of 2020, compared to approximately SGD 20,000 in the first half of 2019, primarily due to increased government subsidies related to COVID-19 measures[58]. Shareholder Information - Tan Chee Beng holds 605,600,000 shares, representing 60.56% ownership in the company[98]. - TCB Investment Holdings Limited, controlled by Tan Chee Beng, owns 44.17% of the company[103]. - Lee's Holdings Limited, controlled by Lee, holds 163,900,000 shares, representing 16.39% ownership[109]. - The company has a total of 100,000,000 shares available for issuance under the share option scheme, accounting for 10% of the issued share capital[116]. - The board did not recommend the payment of an interim dividend for the period ended June 30, 2020[84]. Debt and Liabilities - The debt-to-equity ratio increased to approximately 29.4% as of June 30, 2020, compared to 27.1% on December 31, 2019[71]. - The company's total liabilities decreased from SGD 1,293,999 in 2019 to SGD 706,210 in 2020, indicating a reduction of 45.4%[188]. - The group's net debt as of June 30, 2020, was SGD 3,875,613, with total equity of SGD 42,232,509, resulting in a debt-to-equity ratio of 8%[152]. Trade Receivables and Impairment - Trade receivables were SGD 3,613,860, down from SGD 6,002,270, indicating a decrease of 39.7%[134]. - The aging analysis of trade receivables shows that receivables over 120 days increased to SGD 2,644,283 from SGD 1,309,660, indicating a rise of approximately 102.5%[197]. - The impairment provision for trade receivables remained unchanged at SGD 265,049 as of June 30, 2020, consistent with the amount reported at the end of 2019[200]. - The company identified two customers with higher credit risk characteristics, leading to a loss provision of SGD 155,049 recognized in 2019 due to ongoing financial restructuring[200].
BENG SOON MACH(01987) - 2020 - 中期财报