Financial Performance - For the six months ended June 30, 2020, the company's revenue decreased by 81.6% to approximately SGD 2.5 million, down from SGD 13.6 million in the same period last year[23]. - The gross loss for the same period was approximately SGD 0.4 million, a decrease of about SGD 1.8 million or 128.6% compared to a gross profit of SGD 1.4 million in the previous year[23]. - The net loss for the six months ended June 30, 2020, was SGD 2.3 million, compared to a net loss of SGD 0.8 million in the prior year, representing an increase of 187.5%[26]. - The gross loss margin for the six months ended June 30, 2020, was -16.0%, compared to a gross profit margin of 10.3% in the previous year, reflecting a decline of 26.3 percentage points[26]. - The company reported a loss per share of SGD 0.25 for the six months ended June 30, 2020, compared to SGD 0.10 in the same period last year, an increase of 156.7%[26]. - The company incurred a loss before tax of SGD 2,319,000 for the six months ended June 30, 2020, compared to a loss of SGD 829,000 in the prior year, reflecting a deterioration in financial performance[107]. - The company reported a total loss attributable to owners of SGD (2,319,000) for the six months ended June 30, 2020, compared to SGD (829,000) in 2019, resulting in a basic and diluted loss per share of SGD (0.25) compared to SGD (0.10) in 2019[143]. - The company reported a pre-tax loss of SGD 2,319,000 for the six months ended June 30, 2020, compared to a loss of SGD 829,000 in the same period of 2019, indicating a significant increase in losses[114]. Revenue and Contracts - The company had eight ongoing projects as of June 30, 2020, with a total contract value of approximately SGD 47.4 million, of which about SGD 10.1 million was recognized as revenue[26]. - Two new projects were secured during the six months ended June 30, 2020, with a total contract value of approximately SGD 18.6 million, expected to commence in July and September 2020 respectively[27]. - The company expects to recognize revenue from unfulfilled contracts within one to two years, with a transaction price allocated to unfulfilled performance obligations of SGD 37,302,000 for the six months ended June 30, 2020, compared to SGD 7,539,000 in 2019[136]. - Revenue from major customers exceeding 10% of total revenue includes Customer A with SGD 485,000 and Customer E with SGD 1,516,000 for the six months ended June 30, 2020[135]. - The company reported total revenue from electromechanical system installation of SGD 2,505,000 for the six months ended June 30, 2020, down from SGD 13,627,000 in the same period of 2019, representing a decline of approximately 81.6%[132]. Economic Context - The construction industry in Singapore experienced a significant decline of 59.3% year-on-year in the second quarter of 2020, exacerbated by COVID-19 related restrictions[21]. - The Singapore economy contracted by 13.2% year-on-year in the second quarter of 2020, indicating severe economic challenges due to the pandemic[21]. Cost Management - Service costs decreased by approximately SGD 9.3 million or 76.2% to about SGD 2.9 million for the six months ended June 30, 2019, consistent with the decline in revenue[38]. - Employee costs totaled approximately SGD 2.5 million, down from about SGD 3.9 million for the six months ended June 30, 2019, with a total of 178 employees[57]. - Total employee costs for the six months ended June 30, 2020, were SGD 2,518,000, down from SGD 3,876,000 in 2019, indicating a reduction in workforce expenses[142]. - Administrative expenses decreased by approximately SGD 0.2 million or 7.7% to about SGD 2.4 million, mainly due to reduced rental expenses for dormitories used for foreign workers[42]. - Financing costs were zero SGD due to the repayment of bank loans and the expiration of vehicle financing leases[43]. Cash Flow and Liquidity - As of June 30, 2020, the group had cash and bank balances of approximately SGD 15.8 million and undrawn bank financing of about SGD 6.8 million[48]. - The company’s cash flow statement reflects a significant reduction in cash and cash equivalents, indicating potential liquidity challenges[155]. - Cash and cash equivalents decreased by SGD 5,383,000, compared to an increase of SGD 739,000 in the previous year[116]. - The company’s cash and cash equivalents at the end of the period stood at SGD 10,571,000, down from SGD 19,066,000 at the end of the previous year[116]. - Operating cash flow before changes in working capital was negative SGD 2,039,000, worsening from negative SGD 694,000 year-on-year[114]. - Net cash generated from operating activities was SGD 1,656,000, down from SGD 2,432,000 in the previous year, reflecting a decline of approximately 31.8%[114]. Corporate Governance - The company has established an audit committee to oversee financial reporting and risk management, ensuring compliance with applicable accounting standards[104]. - The audit committee consists of three independent non-executive directors, enhancing corporate governance standards[104]. - The company has maintained high standards of corporate governance to protect shareholder interests and enhance accountability[99]. - The company has complied with all applicable principles and code provisions of the corporate governance code during the reporting period[100]. - No known conflicts of interest or competition from directors or major shareholders during the reporting period[98]. Shareholder Information - HMK holds 529,792,000 shares, representing 57.86% of the company's voting shares[92]. - Mrs. Zheng, as the spouse of Mr. Zheng, is deemed to hold 549,792,000 shares, accounting for 60.05% of the voting shares[92]. - Bao Xin Credit Limited holds 519,792,000 shares, which is 56.77% of the voting shares[92]. - The shares held by HMK are subject to a mortgage agreement as collateral for loans, indicating potential risks related to ownership[96]. - The company maintained a public float of at least 25% of its issued shares as required by listing rules[105]. Other Financial Information - The company has not applied any new or revised International Financial Reporting Standards that would have a significant impact on its financial performance or disclosures in the foreseeable future[122]. - The company has not disclosed any new product developments or market expansion strategies in the current report[106]. - There were no significant matters related to the group's business or financial performance noted by the board after the reporting period[106]. - The company has no convertible securities, resulting in basic and diluted loss per share being the same[144]. - The company has not recognized any impairment losses for trade receivables as of June 30, 2020, based on the assessment of credit risk[150].
守益控股(02227) - 2020 - 中期财报