Financial Performance - Revenue for the six months ended June 30, 2024, was SGD 24,278 thousand, a decrease of 54.1% compared to SGD 52,918 thousand in the same period of 2023[5] - Gross profit for the same period was SGD 5,521 thousand, down from SGD 5,977 thousand, reflecting a decline of 7.6%[5] - Operating profit decreased significantly to SGD 458 thousand from SGD 2,322 thousand, representing an 80.3% decline year-over-year[5] - Net profit for the period was SGD 87 thousand, a sharp drop from SGD 2,204 thousand in the previous year, indicating a decline of 96.1%[5] - Basic earnings per share for the period was SGD 0.04, down from SGD 0.22 in the same period last year, a decrease of 81.8%[6] - The company reported a total comprehensive income of SGD 86,000 for the six months ended June 30, 2024, compared to SGD 2,191,000 for the same period in 2023, indicating a decrease of approximately 96.1%[10] - The company incurred a loss of SGD 5,726,000 for the six months ended June 30, 2024, compared to a loss of SGD 7,521,000 for the same period in 2023, showing an improvement of approximately 23.9%[10] - The segment performance for interior renovation services showed a profit of SGD 1,809,000 for the six months ended June 30, 2024, compared to SGD 2,752,000 in the same period of 2023, reflecting a decline of 34.2%[33] - The revenue from the interior decoration services segment decreased by 55.8% to approximately SGD 23.4 million for the six months ended June 30, 2024, compared to approximately SGD 52.9 million for the same period in 2023[100] - Gross profit for the six months ended June 30, 2024, was approximately 5.5 million Singapore dollars, down about 8.3% from approximately 6.0 million Singapore dollars in the previous year[108] Assets and Liabilities - Total assets as of June 30, 2024, were SGD 44,001 thousand, compared to SGD 37,102 thousand as of December 31, 2023, an increase of 18.6%[8] - Total liabilities increased to SGD 30,699 thousand from SGD 29,878 thousand, reflecting a rise of 2.7%[8] - The company’s total reserves, including other reserves and accumulated losses, were SGD (13,047,000) as of June 30, 2024, compared to SGD (13,047,000) as of January 1, 2023, remaining unchanged[10] - Non-current assets as of June 30, 2024, totaled SGD 6,899,000, compared to SGD 1,250,000 as of December 31, 2023[36] - The group reported net trade receivables of SGD 6,074 as of June 30, 2024, up from SGD 4,026 as of December 31, 2023[60] - Trade payables decreased to SGD 4,475,000 as of June 30, 2024, down 32.8% from SGD 6,662,000 as of December 31, 2023[73] - Trade and other payables totaled SGD 21,865,000 as of June 30, 2024, a decrease of 26.5% from SGD 29,679,000 as of December 31, 2023[73] Cash Flow - The net cash flow from operating activities for the six months ended June 30, 2024, was negative SGD 2,841,000, a significant decline compared to positive SGD 7,303,000 in the same period of 2023[11] - The cash and cash equivalents at the end of June 30, 2024, were SGD 13,431,000, down from SGD 16,980,000 at the beginning of the period, representing a decrease of about 21.5%[11] - The net cash used in investing activities was SGD 1,000 for the six months ended June 30, 2024, compared to SGD 24,000 used in the same period of 2023[11] - The financing activities resulted in a net cash outflow of SGD 710,000 for the six months ended June 30, 2024, compared to SGD 5,103,000 in the same period of 2023, indicating a reduction of approximately 86.1%[11] Business Operations - The company’s primary business operations include interior renovation services in Singapore and the sale and distribution of soft drink products in China[13] - The company has expanded its business operations to China for the sale and distribution of soft drink products, establishing a new reporting segment[31] - The company completed a business acquisition during the period, which contributed SGD 855,000 to the total equity[10] - The company completed the acquisition of 51% of Wuhan Second Factory Beverage Co., Ltd. on January 5, 2024, for a total consideration of approximately SGD 4,753,000[76] - The identifiable net assets acquired from Wuhan Second Factory amounted to SGD 1,745,000, with goodwill recognized at SGD 3,863,000[76] - The acquisition of Wuhan No. 2 Plant resulted in a net cash inflow of 17,000 Singapore dollars[79] - For the period ending June 30, 2024, the contribution from Wuhan No. 2 Plant was a revenue of 0.8 million Singapore dollars and a loss of 0.6 million Singapore dollars[79] Accounting Policies - The company has adopted new accounting policies related to business combinations during the interim period[16] - Identifiable assets and liabilities acquired are recognized at fair value, excluding deferred tax assets or liabilities and employee benefit arrangements[17] - Goodwill is measured as the excess of the total consideration transferred over the net identifiable assets acquired and liabilities assumed[18] - Non-controlling interests are presented separately and are measured at fair value or proportionate share of identifiable net assets[20] - Contingent consideration is measured at fair value at the acquisition date and included as part of the consideration transferred[20] - The company will conduct annual impairment tests for goodwill or more frequently if indicators of impairment arise[20] - The accounting treatment for contingent consideration depends on its classification as equity or liability[20] Employee and Compensation - The total employee costs for the six months ended June 30, 2024, amounted to SGD 7,230,000, an increase of 14.8% from SGD 6,299,000 in the same period of 2023[50] - The total remuneration for executive directors increased to SGD 282,000 for the six months ended June 30, 2024, from SGD 155,000 for the same period in 2023[94] - The group currently employs 467 staff, an increase from 398 staff as of June 30, 2023[123] - The group has a competitive employee compensation policy, with regular reviews to attract and retain high-quality staff[123] Governance and Compliance - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited condensed consolidated interim financial statements for the six months ending June 30, 2024, with no objections raised[139] - The company confirmed compliance with the corporate governance code during the entire period ending June 30, 2024[137] - The company has adopted a code of conduct for securities trading that meets or exceeds standard codes[134] Future Outlook - The company aims to achieve an annual growth rate of approximately 30% over the next three years, focusing on expanding its customer base to major enterprises[101] - The company anticipates that the acquisition of additional businesses will enhance future development and strengthen its revenue base[76]
RAFFLESINTERIOR(01376) - 2024 - 中期财报