Financial Performance - For the fiscal year 2019, the company reported a revenue increase of 9.4% to approximately SGD 51.9 million, driven by construction demand and increased hourly wages for foreign workers in the labor dispatch segment [16]. - The pre-tax profit significantly improved due to the growth in demand, despite the challenges posed by the US-China trade war and intense industry competition [16]. - The Singapore construction industry experienced a year-on-year growth of 2.6%, contrasting with the overall GDP growth of only 0.7% [16]. - The group recorded revenue of approximately SGD 51.9 million for the fiscal year 2019, an increase of about 9.4% compared to the previous year [20]. - Gross profit increased from approximately SGD 8.9 million in fiscal year 2018 to approximately SGD 12.4 million in fiscal year 2019, with a gross margin rising from about 18.7% to 23.8% [25]. - Revenue from labor dispatch and supporting services grew by approximately 8.3%, from about SGD 41.2 million in fiscal year 2018 to approximately SGD 44.7 million in fiscal year 2019 [23]. - The group recorded a loss of approximately SGD 0.69 million in FY2019, compared to a loss of SGD 3.54 million in FY2018, indicating an improvement in performance [31]. - Basic loss per share for FY2019 was 0.06 Singapore cents, down from 0.29 Singapore cents in FY2018, based on a weighted average of 1,230,000,000 shares [31]. COVID-19 Impact - The company is closely monitoring the impact of the COVID-19 pandemic, which has created significant uncertainty and disrupted supply chains, affecting several construction projects [17]. - The board is committed to keeping shareholders informed of any significant developments related to the pandemic's impact on business and financial performance [17]. - The group expects to face several adverse factors in 2020 due to the coronavirus outbreak, which may delay construction projects and affect labor demand [20]. - The board is closely monitoring the impact of the coronavirus outbreak on the group's operations and financial performance [20]. Operational Insights - The group anticipates total construction demand in Singapore for 2020 to be between SGD 28 billion and SGD 33 billion, with public sector demand expected to reach SGD 17.5 billion to SGD 20.5 billion [20]. - The group is actively seeking suitable acquisitions for dormitory services to capture more business opportunities [23]. - Administrative expenses increased by approximately SGD 0.4 million, mainly due to rental expenses for the Hong Kong office and costs related to a mandatory cash offer [27]. Debt and Financing - The group’s financing costs increased by approximately SGD 0.44 million due to the adoption of IFRS 16, resulting in lease liability interest expenses [30]. - As of December 31, 2019, the group’s total lease liabilities amounted to approximately SGD 10.1 million, a significant increase from SGD 0.3 million on December 31, 2018 [38]. - The group’s debt-to-equity ratio as of December 31, 2019, was approximately 41.7%, compared to 1.4% on December 31, 2018 [38]. - The net proceeds from the IPO were approximately HKD 82.6 million (equivalent to about SGD 14.1 million), with SGD 0.3 million allocated for the purchase of three new trucks [33]. Employee and Workforce - As of December 31, 2019, the group had 1,650 employees, a decrease from 1,720 employees as of December 31, 2018 [44]. - Employee costs for the fiscal year 2019 were approximately SGD 24.0 million, compared to SGD 23.7 million in fiscal year 2018 [44]. - The employee turnover rate for local employees was 38%, while the turnover rate for foreign workers was 31% as of December 31, 2019 [172]. - The company invested approximately SGD 16,181 in training for local employees and SGD 337,087 for foreign workers during the fiscal year 2019 [181]. Corporate Governance - The company is committed to fulfilling its responsibilities to shareholders and enhancing shareholder value through good corporate governance practices [65]. - The company adopted and complied with all applicable code provisions of the Corporate Governance Code during the year ended December 31, 2019, with some deviations disclosed [66]. - The board of directors consists of nine members, including three independent non-executive directors, meeting the requirement of at least one with appropriate professional qualifications in accounting or related financial management [69]. - The company has established a standard code of conduct for directors' securities transactions, ensuring compliance throughout the year [67]. - The company has established policies and procedures for risk management and internal control, which the board believes are adequate and effective in the current business environment [97]. Environmental and Social Responsibility - The company has established an environmental management system to address its carbon footprint and water conservation efforts [115]. - There were no reported violations of environmental laws and regulations during the fiscal year [115]. - The company made charitable donations totaling SGD 100,500 during the fiscal year, a decrease from SGD 144,300 in the previous fiscal year [113]. - The company has a zero-tolerance policy towards child labor and forced labor, ensuring no employees under the age of 18 are hired [182]. Risk Management - The company has engaged an external professional firm to conduct independent assessments of its risk management and internal control systems [97]. - The board is responsible for evaluating the nature and extent of risks acceptable to the company in achieving its strategic objectives [97]. - The company has implemented a gift and bribery policy to minimize the risks of fraud, corruption, and bribery [193]. Supplier and Procurement - The top five suppliers accounted for approximately 63.5% of total procurement in the fiscal year 2019, up from 59.3% in 2018 [142]. - The largest supplier accounted for 25.4% of total procurement in fiscal year 2019, compared to 22.2% in 2018 [142]. - The company evaluates and monitors suppliers annually to manage environmental and social risks [183]. Audit and Compliance - The total remuneration for auditors Foo Kon Tan LLP (FKT) for the year includes S$175,000 for audit services and S$20,000 for non-audit services, totaling S$195,000 [94]. - The company has not reported any significant violations of employment laws that would impact its operations during the year [175]. - The company has not discovered any serious violations of bribery, extortion, fraud, and money laundering laws that significantly impact its operations during the year [193].
今海国际(02225) - 2019 - 年度财报