Financial Performance - Revenue for the first half of 2021 was SGD 122.8 million, showing a significant increase compared to SGD 71.0 million in the first half of 2020[12] - Gross profit for the first half of 2021 reached SGD 30.4 million, up from SGD 12.5 million in the same period of 2020, indicating a strong recovery[12] - Net profit for the first half of 2021 was SGD 4.6 million, a notable improvement from a net loss of SGD 45,000 in the first half of 2020[13] - Total revenue for the first half of 2021 reached approximately SGD 77.5 million, a 155.2% increase from SGD 30.4 million in the same period of 2020[22] - The electronic manufacturing services segment contributed approximately SGD 73.3 million to total revenue, reflecting a year-on-year growth of 148.3%[22] - The original design manufacturing segment generated approximately SGD 2.8 million, with a significant year-on-year increase of 224.1%[22] - Net profit after tax for the first half of 2021 was approximately SGD 4.6 million, demonstrating strong performance despite supply chain disruptions due to COVID-19[19] - Revenue for the six months ended June 30, 2021, was SGD 77,545 thousand, a significant increase of 155.5% compared to SGD 30,387 thousand in 2020[99] - Gross profit for the same period was SGD 12,492 thousand, up from SGD 3,511 thousand in 2020, reflecting a gross margin improvement[99] - Profit before tax increased to SGD 5,505 thousand, compared to SGD 142 thousand in the previous year, indicating a substantial growth in profitability[99] - Net profit for the period was SGD 4,627 thousand, a dramatic rise from SGD 45 thousand in 2020[99] - Total comprehensive income for the period amounted to SGD 6,338 thousand, compared to SGD 606 thousand in the prior year[99] Strategic Initiatives - The company aims to expand its market presence and enhance product offerings through strategic investments in new technologies[11] - Future guidance indicates a continued focus on increasing revenue and profitability, with expectations of further growth in the second half of 2021[11] - The company is actively pursuing opportunities for mergers and acquisitions to bolster its competitive position in the market[11] - New product development initiatives are underway, aimed at leveraging advancements in semiconductor processing equipment[11] - Strategic partnerships are being explored to facilitate market expansion and drive innovation in product development[11] - The company plans to enhance operational efficiency through the implementation of advanced manufacturing technologies[11] - The company plans to continue expanding its electronic manufacturing services and original design manufacturing segments to capture more market share in the semiconductor industry[118] Financial Position - Total assets as of June 30, 2021, were SGD 125.1 million, while total liabilities were SGD 91.0 million[18] - As of June 30, 2021, the group had cash and cash equivalents of approximately SGD 29.9 million, indicating a solid financial position[36] - The net current assets increased from approximately SGD 51.2 million as of December 31, 2020, to approximately SGD 66.5 million as of June 30, 2021, an increase of about SGD 15.4 million[45] - The company’s total assets as of June 30, 2021, were SGD 112,256 thousand, reflecting a growth from SGD 91,025 thousand as of June 30, 2020[104] - The company’s net asset value increased to SGD 112,256 thousand from SGD 88,946 thousand at the end of 2020[102] - The company reported a foreign exchange gain of SGD 1,397 thousand from overseas operations, compared to SGD 561 thousand in the previous year[99] - The company’s total equity increased to SGD 91,293,000 as of June 30, 2021, up from SGD 84,857,000 as of December 31, 2020, representing a growth of approximately 7%[159] Cash Flow and Investments - The net cash flow used in operating activities was approximately SGD 6.2 million, primarily due to an increase in trade and receivables of SGD 14.6 million and inventory of SGD 12.2 million[39] - The net cash flow used in investing activities was approximately SGD 6.3 million, mainly for the acquisition of property, plant, and equipment of SGD 3.7 million and investment securities of SGD 4.2 million[40] - The net cash flow from financing activities was approximately SGD 16.7 million, primarily from net bank loan proceeds of SGD 10.9 million and issuance of ordinary shares of SGD 6.4 million[44] - The company reported a net cash inflow from financing activities of SGD 16,717 thousand, primarily from bank loans, offset by repayments of bank loans and dividends paid[108] - The company’s investment activities resulted in a net cash outflow of SGD (6,295) thousand, primarily due to the purchase of property, plant, and equipment[108] Shareholder Information - The board proposed an interim dividend of SGD 0.13 per share, totaling approximately SGD 1,197,000, to be paid on September 20, 2021[72] - The interim dividend in HKD is calculated at an exchange rate of 1 SGD to 5.64 HKD, resulting in a dividend of HKD 0.73 per share[72] - Key shareholders include Mr. Lin Guocai with 295,653,246 shares (32.12%) and Mr. Du Xiaotang with 13,038,000 shares (1.42%)[79] - The company has granted share options under its share option scheme, with Mr. Lin Guocai holding 3,000,000 options (0.33%)[82] - The company is committed to maintaining transparency and accountability to its shareholders through robust corporate governance practices[73] - The company will suspend share transfer registration from September 6 to September 7, 2021, to facilitate the dividend payment[72] Corporate Governance - The company has complied with all provisions of the corporate governance code[74] - The board will continue to review and improve corporate governance practices to enhance shareholder returns[73] - The audit committee reviewed the unaudited interim condensed consolidated financial statements for the six months ending June 30, 2021[78] Market Conditions and Risks - The group’s operational disruptions were significantly impacted by the COVID-19 pandemic and U.S.-China trade tensions, affecting supply chains and market expansion efforts[53] - The group anticipates that currency fluctuations among Singapore dollars, Chinese yuan, and U.S. dollars will continue to impact profitability and operational performance[67] - The group has adopted a cautious approach towards potential acquisitions due to uncertainties arising from U.S.-China trade tensions and the COVID-19 pandemic[56] Acquisitions - The company acquired a 51.03% stake in Guangkong Puyan, a private equity fund manager focusing on high-tech manufacturing investments[19] - The company acquired a new subsidiary, Guangkong Puyan, which focuses on fund management services and equity securities investment, enhancing its investment segment[118] - Guangkong Puyan contributed revenue of SGD 1,439,000 and a net profit of SGD 512,000 for the six months following the acquisition[142] Fund Management - The group entered into a partnership agreement for the Nanyang Fund with an initial total investment of SGD 12,487,000 (approximately RMB 60,000,000)[173] - The investment amount for the Nanyang Fund was increased to SGD 41,622,000 (approximately RMB 200,000,000) as per the supplemental agreement[173] - The Nanyang Fund is registered in China and will focus on equity investments in the optoelectronic industry, precision equipment manufacturing, information technology, advanced manufacturing, and related sectors[173]
精技集团(03302) - 2021 - 中期财报