Financial Performance - The group's revenue for the year ended June 30, 2021, was approximately SGD 90.5 million, a decrease of about 29.0% compared to SGD 127.5 million for the year ended June 30, 2020, primarily due to the slow resumption of public and private sector construction projects [10]. - The gross loss decreased from approximately SGD 9.2 million for the year ended June 30, 2020, to SGD 5.2 million for the year ended June 30, 2021, representing an improvement of about 43.6% [11]. - The total comprehensive loss for the year was reduced mainly due to increased other income from government subsidies and cost-cutting measures implemented by the group, although this was offset by increased construction operating costs and rising material costs due to delivery disruptions [11]. - The group recorded a loss of approximately SGD 6.2 million for the year ended June 30, 2021, compared to a loss of SGD 17.0 million for the year ended June 30, 2020 [26]. - Cost of sales for the year ended June 30, 2021, was approximately SGD 95.7 million, a reduction of about 30.0% from SGD 136.7 million for the year ended June 30, 2020 [20]. - Other income and gains increased to approximately SGD 6.2 million for the year ended June 30, 2021, from SGD 2.8 million in the previous year, mainly due to government assistance related to COVID-19 [23]. Market Outlook - The construction industry is expected to remain highly competitive in the foreseeable future, with the group confident in its ability to secure new projects for sustainable business development [11]. - Singapore's Ministry of Trade and Industry revised the GDP growth forecast for 2021 from 4.0-6.0% to 6.0-7.0%, with the construction sector experiencing a year-on-year growth of 106% in the second quarter [10]. - The construction demand in Singapore is projected to recover to between SGD 23 billion and SGD 28 billion in 2021, with about 65% coming from the public sector [34]. - The public sector construction demand is expected to rise to between SGD 15 billion and SGD 18 billion in 2021 [34]. - The private sector construction demand is anticipated to be between SGD 8 billion and SGD 10 billion in 2021 [34]. Operational Strategy - The group plans to continue expanding its market position in Singapore's construction sector and actively undertake public and private sector projects [16]. - The group aims to enhance productivity and quality by upgrading and replacing existing machinery and equipment [17]. - The group will adopt digital solutions to strengthen its technical capabilities and productivity [17]. - The group anticipates ongoing challenges due to increased costs from safety management measures, rising construction material costs, and labor shortages [15]. Financial Position - As of June 30, 2021, the group's total current assets were approximately SGD 64.4 million, down from SGD 78.2 million in 2020 [29]. - The group's total current liabilities as of June 30, 2021, were approximately SGD 45.5 million, compared to SGD 50.1 million in 2020 [29]. - The current ratio as of June 30, 2021, was approximately 1.4, down from 1.6 in 2020 [29]. - The group's total cash and cash equivalents as of June 30, 2021, were approximately SGD 32.5 million, a decrease from SGD 48.1 million in 2020 [27]. - The total debt, including borrowings and lease liabilities, was approximately SGD 7.1 million as of June 30, 2021, down from SGD 8.0 million in 2020 [27]. - The debt-to-equity ratio as of June 30, 2021, was approximately 20.1%, compared to 19.0% in 2020 [31]. Human Resources - As of June 30, 2021, the group had 393 employees, with total employee costs approximately SGD 11.4 million, a decrease from SGD 12.4 million in 2020 [38]. - The group has identified significant risks, including reliance on a major client and potential delays in project completion, which could adversely affect financial performance [38]. - The group aims to enhance its technical capabilities by hiring employees with experience in Building Information Modeling (BIM) and Virtual Design and Construction (VDC), although hiring has been delayed due to the pandemic [43][44]. Corporate Governance - The company emphasizes high standards of corporate governance to maintain shareholder trust and create long-term value [84]. - The board of directors consists of a majority of independent non-executive directors, exceeding the requirement of at least one-third as per listing rules [92]. - The company has established three board committees: the Remuneration Committee, the Nomination Committee, and the Audit Committee, to oversee specific areas of the company's affairs [103]. - The company has adopted the corporate governance code principles and has complied with the relevant regulations as of June 30, 2021 [85]. - The independent non-executive directors provide impartial opinions on the company's strategy, performance, and monitoring, ensuring the interests of all shareholders are considered [94]. Risk Management - The company maintains an effective internal control and risk management system, with annual reviews conducted by the board to assess its effectiveness [136]. - The risk management process includes identifying major risks, assessing their potential impact and likelihood, and planning effective mitigation activities [137]. - The audit committee confirmed that the consolidated financial statements for the fiscal year ending June 30, 2021, comply with applicable accounting standards and listing rules [129]. Shareholder Relations - The company has established multiple communication channels with shareholders, including annual reports and special meetings [146]. - The board will continue to monitor and review the existing structure regularly, making necessary changes when appropriate [99]. - The board does not recommend a final dividend for the year ended June 30, 2021, consistent with no dividend in 2020 [37]. Investment and Utilization of Proceeds - The net proceeds from the listing amounted to approximately HKD 88.4 million (equivalent to about SGD 15.5 million) after deducting global offering-related underwriting commissions and expenses [52]. - The planned allocation of the net proceeds included HKD 24.7 million for purchasing new machinery and equipment, with HKD 18.2 million actually utilized and HKD 6.5 million remaining [52]. - The company plans to enhance its technical capabilities and expand its workforce to support business growth, with HKD 5.7 million allocated, of which HKD 1.3 million has been utilized [52].
光荣控股(09998) - 2021 - 年度财报