Financial Performance - The group's revenue increased by 79.7%, from approximately SGD 27,890,000 in 2017 to SGD 50,117,000 in 2018[10] - The net profit after tax for the year was approximately SGD 6,542,500, excluding listing expenses of about SGD 3,879,000[10] - The company recorded revenue of approximately SGD 50,117,000 for the year ended December 31, 2018, representing a 79.7% increase from SGD 27,890,000 in 2017[18] - The net profit after tax for the year ended December 31, 2018, was approximately SGD 6,542,500, an increase of SGD 3,074,500 compared to SGD 3,468,000 in 2017[20] - The gross profit for the year ended December 31, 2018, was approximately SGD 12,219,000, with a gross margin maintained between 24% and 25%[18] - The company’s operating cash flow for the year was approximately SGD 5,137,000[23] - As of December 31, 2018, the company had cash and cash equivalents of approximately SGD 16,963,000, an increase from SGD 11,230,000 in 2017[24] - The company’s total borrowings included finance lease obligations of approximately SGD 325,000 and bank borrowings of approximately SGD 5,600,000[24] Business Strategy and Market Position - The company aims to enhance its market position in the Singapore steel structure industry by expanding capacity and hiring more staff[12] - The company aims to expand its existing capacity to meet higher demand and diversify customer risk by actively seeking projects from other clients[38] - The company plans to utilize approximately 56.7% of the net proceeds from the share offering for acquiring new steel facilities in Singapore to increase capacity[32] - The company has already utilized SGD 0.8 million for hiring additional staff to support business expansion[34] - New projects approved on March 19 and June 29, 2018, contributed to the revenue increase for the fiscal year[10] - The construction industry in Singapore is driven by multiple infrastructure projects, expected to continue for the next decade, with structural steel being a key material[39] - The demand for design and consulting technology from steel manufacturers will increase due to large-scale projects, enhancing their value in future projects[39] Corporate Governance - The board of directors consists of five members, including two executive directors and three independent non-executive directors[58] - All directors attended 100% of the board meetings held during the year, with each member present at all four meetings[58] - The company has adopted a board diversity policy to ensure a balance of skills, experience, and perspectives among board members[59] - The independent non-executive directors provide strategic advice and ensure compliance with financial and regulatory requirements[72] - The company has a robust corporate governance framework in place, ensuring effective oversight of management[56] - The chairman and CEO positions are separated, with the CEO position currently vacant and responsibilities handled by an executive director[54] - The board is committed to continuous professional development to stay updated on governance practices and regulatory changes[68] - The company has established a nomination committee to identify qualified candidates for board membership, considering diversity and business needs[71] - All directors are required to retire at least once every three years, ensuring regular evaluation and renewal of the board[69] - The company has confirmed compliance with the GEM Listing Rules regarding securities trading by directors throughout the fiscal year[55] Risk Management - The board is responsible for ensuring effective risk management practices to minimize operational risks, adopting policies and monitoring systems to mitigate identified risks[39] - The company has established a risk management and internal control system to safeguard shareholder interests and assets, with no significant internal control deficiencies reported[94] - The audit committee held 4 meetings during the year to review quarterly, half-year, and annual financial statements, focusing on compliance with accounting standards and GEM listing rules[77] - The company has not established an internal audit function due to the current scale and complexity of its operations, but will consider it if necessary[94] - The company has identified risks and uncertainties that may impact its financial condition, operations, and outlook, and has adopted risk management policies to mitigate these risks[192] Environmental, Social, and Governance (ESG) Practices - The ESG data covers the fiscal year from January 1, 2018, to December 31, 2018, highlighting the company's commitment to environmental, social, and governance practices[109] - The company emphasizes employee health and safety as a key ESG concern, ranking it as the top issue[115] - The company has achieved bizSAFE star certification and OHSAS 18001:2007 certification for its health and safety management systems[149] - The company is committed to reducing its carbon footprint and has implemented measures such as using electric vehicles[116] - The company has established operational protocols to promote resource conservation and reduce waste[128] - The company has not generated significant hazardous waste, focusing instead on proper disposal of non-hazardous waste[127] - The company actively engages stakeholders for feedback on ESG policies and performance[115] - The company emphasizes a discrimination-free hiring process based on merit and qualifications[139] - The company has implemented a performance management system that includes regular reviews and feedback for employee development[151] - The company adheres to all applicable employment and labor standards laws, including Singapore's Employment Act and Foreign Manpower Act[144] Community Engagement - The company actively participates in community support initiatives, including educational projects for low-income families[173] - The company emphasizes community engagement and considers community interests in its business activities[180] Financial Stability and Future Outlook - The board's report includes a summary of financial data for the past four years, indicating a focus on financial stability[190] - The company has sufficient financial resources for continued operations in the foreseeable future, as indicated by its current financial condition and available financing[195] - As of December 31, 2018, the company had no significant contingent liabilities, legal claims, or potential lawsuits[191] - The company has not reported any significant uncertainties that could affect its ability to continue as a going concern as of the report date[105] Compliance and Certifications - The company has received international certifications for its quality, environmental, and occupational health and safety management systems, including ISO 9001:2015, ISO 14001:2015, and OHSAS 18001:2007[156] - The company has a quality management system certified by ISO 9001, ensuring compliance with all legal regulations and continuous improvement in operations[161] - The company has not experienced any product recalls or issues related to non-compliant products during the year[168] - The company has a zero-tolerance policy towards corruption, including bribery and fraud, and encourages reporting of any unethical behavior[172]
高原之宝(08402) - 2018 - 年度财报