Financial Performance - The group's revenue for the year ended December 31, 2018, was approximately SGD 10,475,000, a decrease of 18.5% from SGD 12,847,000 in 2017[11]. - Gross profit for the year was approximately SGD 4,119,000, down from SGD 5,565,000 in 2017, resulting in a gross margin of 39.3%, compared to 43.3% in the previous year[11]. - The group reported a profit of approximately SGD 884,000 for the year, a significant improvement from a loss of approximately SGD 200,000 in 2017[11]. - The group's pre-tax profit for the year was approximately SGD 1,204,000, an increase of about SGD 1,046,000 compared to the previous fiscal year[18]. - The net profit for the fiscal year ended December 31, 2018, was approximately SGD 884,000[33]. - Revenue for the year ended December 31, 2018, was SGD 10,474,896, a decrease of 18.5% from SGD 12,847,395 in 2017[151]. - Gross profit for 2018 was SGD 4,119,042, down 26.0% from SGD 5,564,977 in 2017[151]. - Net profit for the year was SGD 884,396, compared to a loss of SGD 200,110 in 2017, representing a significant turnaround[151]. Revenue Challenges - The decrease in revenue was primarily attributed to lower public sector income of approximately SGD 2,452,000, with no new high-value contracts to replace expiring ones[17]. - The group anticipates facing significant challenges in 2019 due to intense bidding competition and rising material costs, leading to expected declines in local construction market revenue and gross profit[12]. Expense Management - Selling and administrative expenses decreased by approximately SGD 449,000 or 12.5%, totaling around SGD 3,159,000 for the year[18]. - The group incurred total employee costs of approximately SGD 3,086,000 for the year ended December 31, 2018, down from SGD 3,530,000 in 2017, reflecting a reduction of about 12.6%[30]. - The group will continue to manage its expenses and review its business strategies to adapt to the current market environment[13]. Cash and Liquidity - As of December 31, 2018, the group's cash and cash equivalents increased by approximately SGD 826,000, totaling about SGD 11,147,000 compared to SGD 10,321,000 in 2017[20]. - The total cash and cash equivalents at the end of 2018 amounted to SGD 11,146,677, up from SGD 10,320,566 at the beginning of the year, representing an increase of about 8%[163]. - The net cash generated from operating activities for 2018 was SGD 1,195,718, compared to SGD 1,141,427 in 2017, showing a slight increase of approximately 4.8%[163]. Corporate Governance - The company appointed three independent non-executive directors, constituting over one-third of the board, ensuring compliance with GEM Listing Rules[52]. - The board held 5 meetings and 2 shareholder meetings during the year ending December 31, 2018, with all executive directors attending all meetings[49]. - The company has adopted a code of conduct for securities trading by directors, confirming compliance with the standards set forth in GEM Listing Rules[46]. - The company’s governance practices were reviewed regularly to align with the GEM Listing Rules, and it was confirmed that the company complied with the corporate governance code for the year ending December 31, 2018[45]. - The company has established a risk management and internal control system deemed sufficient and effective as of December 31, 2018[71]. Shareholder Information - The company did not recommend the payment of a final dividend for the year ending December 31, 2018[84]. - As of December 31, 2018, the company had distributable reserves amounting to SGD 12,126,905[101]. - Major shareholders include Absolute Truth Investments Limited with 983,440,000 shares (30.73%), Wang Yafei with 240,000,000 shares (7.50%), and Han Dongshen with 176,000,000 shares (5.50%) as of December 31, 2018[121]. Risk Management - The board is responsible for ensuring effective risk management practices to mitigate identified risks[91]. - The company has not identified any significant contingent liabilities or legal claims as of December 31, 2018, except for a potential claim of SGD 1,007,540 related to a misrepresentation[90]. - The company has no foreign exchange hedging policy but continuously monitors its foreign exchange risks[93]. Accounting Policies - The company has adopted new International Financial Reporting Standards (IFRS) which may impact the financial performance and disclosures in future reports[170]. - The company adopted the expected credit loss model under IFRS 9, which did not have a significant impact on the consolidated financial statements, thus no restatement of the initial loss provision was necessary[177]. - The company’s financial statements are prepared in accordance with the historical cost convention, except for certain financial instruments measured at fair value[186].
吉辉控股(08027) - 2018 - 年度财报