Financial Performance - The group's revenue increased by approximately 6.8% from about SGD 44.4 million in FY2017 to approximately SGD 47.5 million in FY2018[7] - The gross profit decreased from approximately SGD 11.7 million in FY2017 to about SGD 8.9 million in FY2018, with a gross margin decline from 26.4% to 18.7%[14] - The group incurred a loss of approximately SGD 3.5 million in FY2018 due to higher service costs and administrative expenses[7] - The company recorded a net loss of approximately SGD 3.5 million in FY2018, compared to a profit of about SGD 4.6 million in FY2017, primarily due to rising service and administrative costs[21] - Basic earnings per share for FY2018 were SGD 0.29 cents, based on a weighted average of 1,230,000,000 shares[22] - The company reported a loss before tax of SGD 3,856,113 in 2018, compared to a profit of SGD 3,146,884 in 2017, marking a substantial decline[200] - The net loss after tax for 2018 was SGD 3,538,952, contrasting with a profit of SGD 2,277,773 in 2017[200] - Basic and diluted loss per share for 2018 was SGD (0.29), compared to earnings of SGD 0.21 per share in 2017[200] Revenue Sources - The labor dispatch and related services revenue rose by 13.3% from approximately SGD 36.4 million in FY2017 to about SGD 41.2 million in FY2018[12] - The group maintained stable revenue from dormitory services at approximately SGD 5.2 million in FY2018, compared to SGD 5.3 million in FY2017[12] - The revenue from construction support services decreased by approximately SGD 1.6 million in FY2018 due to a reduction in the number of projects awarded[13] - The information technology services revenue fell from about SGD 0.74 million in FY2017 to approximately SGD 0.53 million in FY2018, primarily due to contract terminations[13] - Other income decreased from approximately SGD 1.73 million in FY2017 to about SGD 1.24 million in FY2018, mainly due to the end of a one-time profit-sharing arrangement[16] Expenses and Costs - The increase in foreign worker wages from approximately SGD 9.6 million in FY2017 to about SGD 11.9 million in FY2018 contributed to the rise in service costs[14] - Foreign worker levies increased from approximately SGD 11.4 million in FY2017 to about SGD 13.2 million in FY2018, primarily due to government-imposed increases and the recruitment of more workers[15] - Depreciation rose from approximately SGD 0.8 million in FY2017 to about SGD 1.0 million in FY2018 due to additional plant and equipment purchases[15] - Employee-related costs increased from approximately SGD 3.0 million in FY2017 to about SGD 4.1 million in FY2018, driven by higher accommodation expenses for foreign workers[15] - Administrative expenses surged from approximately SGD 7.1 million in FY2017 to about SGD 12.8 million in FY2018, largely due to increased director remuneration and professional fees[17] Corporate Governance - The board consists of six directors, with independent non-executive directors making up 50% of the board members[59] - The company is committed to good corporate governance to enhance shareholder value[54] - The company has adopted all applicable code provisions of the corporate governance code during the reporting period[55] - The management is responsible for executing the business plans and strategies adopted by the board[57] - The company has established various committees to oversee different responsibilities within the board[57] - The independent non-executive director has extensive experience in property development and related projects in China[49] - The company emphasizes the importance of accountability in its management structure and internal controls[54] Risk Management - The group faces cash flow interest rate risk due to floating interest rates on bank balances and fair value interest rate risk from fixed-rate financing leases[37] - The group is exposed to foreign currency risk from bank balances and financial assets denominated in USD and HKD, which are not the functional currencies of the group[38] - To mitigate credit risk, the group has established credit limits and approval procedures, ensuring overdue debts are followed up and assessed for recoverability[39] - The group monitors cash and cash equivalents to maintain sufficient levels for operational needs and reduce cash flow volatility[40] - The group faces equity price risk from financial instruments classified as fair value through profit or loss, and it diversifies its portfolio to manage this risk[41] Employee and Labor Practices - The company employed 1,720 employees as of December 31, 2018, an increase from 1,556 employees in 2017[36] - The total employee costs for the fiscal years 2018 and 2017 were approximately SGD 23.7 million and SGD 17.5 million, respectively[36] - The employee turnover rate for local employees was 34%, while the turnover rate for foreign workers was 31% as of December 31, 2018[164] - The company invested approximately SGD 10,241 and 2,240 hours in employee training, and SGD 525,550 and 34,424 hours in training for foreign workers during the fiscal year 2018[172] - The company has a zero-tolerance policy towards child and forced labor, ensuring no employees under 18 are hired and requiring suppliers to adhere to the same labor standards[176] Environmental Management - The company has established an environmental management system to address its carbon footprint and water conservation efforts[106] - The company reported an increase in water consumption at its dormitories, with SKA's usage rising from 27,166 cubic meters in 2017 to 30,416 cubic meters in 2018, and WD's from 105,660 cubic meters to 110,710 cubic meters[157] - The overall electricity consumption remained stable, with a slight increase from 836,615 kWh in 2017 to 837,225 kWh in 2018, despite the addition of new dormitories and foreign workers[160] - The company reduced its diesel consumption per truck from 12,973 liters in 2017 to 11,885 liters in 2018, and CO2 emissions from 33,910 kg to 31,068 kg[151] - The company has not generated any hazardous waste, and non-hazardous waste from dormitories has been properly managed[153] Shareholder Information - The company did not recommend any dividends for FY2018, consistent with FY2017[24] - The company’s distributable reserves as of December 31, 2018, amount to approximately SGD 10.7 million, calculated from a total share premium of about SGD 15 million minus accumulated losses of approximately SGD 4.3 million[103] - The company has adopted a dividend policy that allows for the distribution of stable and sustainable returns to shareholders, contingent on profitability and operational stability[143] - The company has implemented a sustainable dividend policy, balancing shareholder expectations and prudent capital management, with the board retaining discretion to update or cancel the policy at any time[145] Compliance and Legal Matters - The company has complied with all relevant laws and regulations in Singapore, the Cayman Islands, and Hong Kong during the fiscal year[107] - The company has established a whistleblowing policy allowing employees to report unethical behavior confidentially[186] - There were no significant violations related to bribery, extortion, fraud, or money laundering laws during the year[186] - The company has implemented policies to mitigate risks of fraud and corruption, including a gift and entertainment policy[185]
今海国际(02225) - 2018 - 年度财报