Financial Performance - For the six months ended June 30, 2019, the company's revenue increased by 52.8% to approximately SGD 13.6 million, compared to SGD 8.9 million in the same period last year[43]. - Gross profit decreased from approximately SGD 3.4 million to about SGD 1.4 million, resulting in a gross margin decline from 38.2% to 27.9% due to increased subcontracting work on ongoing projects[44]. - The company recorded a loss of approximately SGD 0.8 million for the period, compared to a profit of SGD 1.2 million for the same period in 2018[66]. - Revenue increased by approximately SGD 4.7 million or 52.8% to SGD 13.6 million for the six months ended June 30, 2019, compared to SGD 8.9 million for the same period in 2018[56]. - Gross profit decreased by approximately SGD 2.0 million or 58.8% to SGD 1.4 million, with a gross margin of 10.3% compared to 38.2% in the previous year[61]. - The company incurred an operating loss before tax of SGD 829,000 for the period, compared to a profit of SGD 1,489,000 in the prior year, reflecting a significant downturn[149]. - The net loss for the period was SGD 829,000, compared to a profit of SGD 1,227,000 in the same period last year, marking a shift from profitability to loss[149]. - The total comprehensive loss for the period amounted to SGD 838,000, contrasting with a comprehensive income of SGD 1,230,000 in the previous year[149]. - Basic and diluted loss per share for the first half of 2019 was SGD (0.10), compared to earnings of SGD 0.19 per share in the same period of 2018[149]. Project and Contract Status - As of June 30, 2019, the company had seven ongoing projects with a total contract value of approximately SGD 48.0 million, of which about SGD 40.5 million was recognized as revenue[46]. - The company completed one project during the period with a total contract value of approximately SGD 24.5 million[45]. - No new contracts were secured in the competitive Singapore construction market during the six months ended June 30, 2019, but a new contract worth approximately SGD 6.8 million was obtained afterward[51]. - The ongoing projects are primarily in public facilities, private residential complexes, educational institutions, and healthcare sectors, with contract values ranging from SGD 2.9 million to SGD 12.7 million[50]. - The management noted delays in ongoing projects due to client schedules, but these delays are not expected to significantly impact the company's financial performance[50]. - The company remains focused on bidding for new projects to maintain competitiveness in the local construction market despite ongoing challenges[43]. - The company will continue to actively participate in new project tenders to secure more contracts and enhance its market position[43]. Financial Position and Cash Flow - Cash and bank balances amounted to approximately SGD 19.1 million as of June 30, 2019, compared to SGD 18.3 million as of December 31, 2018[68]. - Total interest-bearing borrowings were approximately SGD 45,000 as of June 30, 2019, down from approximately SGD 1.4 million as of December 31, 2018[68]. - The current ratio and debt-to-equity ratio were approximately 4.7 times and 0.1% respectively as of June 30, 2019[68]. - Operating cash flow generated was SGD 2,613 million, compared to SGD 7 million in the previous year, indicating a significant improvement[163]. - The company’s cash flow from financing activities was a net outflow of SGD 1,398 million, compared to SGD 267 million in the previous year[169]. Employee and Administrative Costs - As of June 30, 2019, the group had a total of 237 employees, with total employee costs amounting to approximately SGD 3.8 million, compared to SGD 3.7 million for the same period in 2018[78]. - Administrative expenses increased by approximately SGD 0.6 million or 30.0% to SGD 2.6 million, mainly due to increased manpower costs for the tender department[62]. Use of IPO Proceeds - As of June 30, 2019, the total amount of net proceeds from the IPO was approximately SGD 132.2 million, with SGD 11.1 million utilized[101]. - The planned use of net proceeds includes hiring personnel (SGD 3.7 million), purchasing machinery and equipment (SGD 1.3 million), and expanding internal capabilities (SGD 6.9 million)[106]. - The group plans to utilize all remaining net proceeds by December 31, 2020, based on the market conditions and new project awards[104]. - The group has temporarily suspended its business expansion plans until sufficient projects are secured[97]. - The group aims to enhance its internal capabilities by hiring project managers, engineers, and BIM-certified personnel[99]. Shareholder and Governance Information - The major shareholder HMK holds 519,792,000 shares, representing 61.88% of the total issued voting shares[124]. - The rights of directors and senior executives to purchase shares or bonds are not applicable during this period, and no arrangements have been made for them to benefit from such purchases[115]. - The company did not redeem any shares during the period, nor did it or any of its subsidiaries purchase or sell any of its shares[118]. - The company has no other interests or positions in shares or related securities as of June 30, 2019, apart from those disclosed[123]. - The company confirmed compliance with corporate governance codes throughout the reporting period[135]. - The audit committee was established to oversee financial reporting and risk management, consisting of three independent non-executive directors[137]. Market and Operational Insights - The company anticipates continued challenges and volatility in the mechanical and electrical industry in Singapore and the region over the next 12 months[43]. - The company has not issued any new strategies or products during the reporting period[125]. - There are no significant changes in user data or market expansion plans disclosed in the report[126]. - The company has not engaged in any mergers or acquisitions during the reporting period[127]. - All revenue is derived from operations in Singapore, where the company’s properties, plants, and equipment are also located[197]. Revenue Breakdown - Major customers contributing over 10% of total revenue included Customer A with SGD 3,369,000, Customer B with SGD 2,669,000, Customer C with SGD 2,625,000, and Customer D with SGD 2,550,000[191]. - The revenue from electromechanical system installation for the six months ended June 30, 2019, was SGD 13,627,000, compared to SGD 8,893,000 for the same period in 2018, representing a growth of approximately 53.5%[190]. - Other income for the six months ended June 30, 2019, included interest income of SGD 177,000, government grants of SGD 40,000, and total other income amounting to SGD 352,000[199].
守益控股(02227) - 2019 - 中期财报