BENG SOON MACH(01987) - 2024 - 中期财报

Company Information Company Overview This chapter provides the company's basic information, including board members, main office addresses, stock code, listing date, and primary banks - Mr. Tan Chee Beng serves as the Chairman and Chief Executive Officer of the company[1] - The company was listed on the Hong Kong Stock Exchange on November 8, 2019, with stock code 1987[3] Management Discussion and Analysis Overall Review and Business Operations The Group is a leading demolition service provider in Singapore, serving both public and private sectors, demonstrating stable business operations with 8 completed and 10 ongoing projects in H1 2024 - The company's core business is providing various building and structure demolition services in Singapore, with over 30 years of experience[6] - In H1 2024, the Group completed 8 projects, including factory buildings, residential buildings, and industrial buildings[6] - As of June 30, 2024, the Group has 10 ongoing demolition projects, primarily involving factory buildings, commercial, and school buildings[12] Outlook and Prospects Management is optimistic about future prospects, expecting continued growth in Singapore's construction and demolition industry in 2024, with total construction demand projected between S$32 billion and S$38 billion - Singapore's economy is projected to grow by 1.0% to 3.0% in 2024, with continued expansion in the construction sector[24] - Total construction demand in Singapore is estimated to range from S$32 billion to S$38 billion in 2024, primarily driven by public sector housing and infrastructure projects[24] - The outlook for H2 2024 is optimistic due to Singapore's prioritization of infrastructure development and urban rejuvenation, with the construction and demolition industry playing a key role[26] Financial Review In H1 2024, the Group's financial performance significantly improved with total revenue up 30.8% to S$14.0 million, gross profit up 277.8% to S$3.4 million, and loss attributable to equity holders narrowing from S$2.8 million to S$1.3 million Revenue Analysis Total revenue in H1 2024 increased by 30.8% to approximately S$14.0 million, primarily driven by new projects and proceeds from disposal of scrap materials Revenue Breakdown (For the six months ended June 30) | Revenue Source | 2024 (S$ '000) | 2023 (S$ '000) | YoY Change | | :--- | :--- | :--- | :--- | | Net contract sum | 2,772 | 1,091 | +154.1% | | Proceeds from disposal of scrap materials | 9,931 | 9,481 | +4.7% | | Proceeds from earth piling | 127 | 63 | +101.6% | | Other income | 1,159 | 105 | +1003.8% | | Total Revenue | 13,989 | 10,740 | +30.8% | Gross Profit and Gross Margin Analysis Gross profit surged by 277.8% to S$3.4 million, with gross margin improving from 8.4% to 24.3%, mainly due to increased profit margins from scrap material disposal - Gross profit increased by 277.8% year-on-year, reaching S$3.4 million[32] - Gross margin improved from 8.4% (H1 2023) to 24.3% (H1 2024), mainly due to increased profit margins from disposal of scrap materials[32] Net Loss Analysis Despite revenue and gross profit growth, the Group recorded a loss in H1 2024, though loss attributable to equity holders significantly narrowed from S$2.8 million to S$1.3 million - Loss attributable to equity holders of the company in H1 2024 was approximately S$1.3 million, a significant reduction from the S$2.8 million loss in H1 2023[41] Capital Structure, Liquidity, and Financial Resources The Group maintains a robust financial position with a gearing ratio of approximately 23.1% as of June 30, 2024, though net current assets and cash decreased due to working capital usage Key Financial Position Indicators | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Net current assets | S$23.9 million | S$24.3 million | | Cash and cash equivalents | S$6.8 million | S$15.1 million | | Total equity | S$38.8 million | S$40.1 million | | Gearing ratio | 23.1% | 22.7% | Use of Proceeds from Listing The company's net listing proceeds were approximately HK$77.5 million, with HK$16.9 million remaining unutilized as of June 30, 2024, expected to be fully used by June 30, 2025 due to cautious business strategies Use of Proceeds and Utilization Status (HK$ '000) | Purpose | Planned Amount | Unutilized at start of 2024 | Utilized in H1 2024 | Unutilized at end of H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Enhance fleet capabilities | 51,200 | 17,379 | 1,962 | 15,417 | | Repay bank borrowings | 13,500 | - | - | - | | Recruit additional staff | 9,100 | - | - | - | | Appoint professional consultants | 2,200 | - | 711 | 1,489 | | General working capital | 1,500 | - | - | - | - As of June 30, 2024, unutilized net proceeds were approximately HK$16.9 million, expected to be fully utilized by June 30, 2025 or earlier[62] Corporate Governance and Other Information Directors' and Major Shareholders' Interests This chapter discloses the shareholdings of directors and major shareholders, with Chairman and CEO Mr. Tan Chee Beng holding 50.56% of the company's shares - Chairman and CEO Mr. Tan Chee Beng is deemed to be interested in 505,600,000 shares of the company, representing 50.56% of the total share capital[63][65] Corporate Governance The company adheres to high corporate governance standards, complying with most code provisions, with one deviation where the Chairman and CEO roles are combined, which the Board deems beneficial for effective management - The company has adopted a share option scheme, but as of the end of H1 2024, no share options had been granted, exercised, or remained outstanding[74] - The company deviated from Corporate Governance Code Provision C.2.1, where the roles of Chairman and Chief Executive Officer are not segregated, both held by Mr. Tan, which the Board believes is in the best interest of the Group[79] - The Audit Committee has reviewed and approved the unaudited interim financial results for the six months ended June 30, 2024[83] Condensed Consolidated Financial Statements Condensed Consolidated Statement of Comprehensive Income For H1 2024, the Group reported S$13.99 million revenue, S$3.40 million gross profit, and a significantly narrowed loss after tax of S$1.33 million, with basic loss per share at S$0.13 cents Condensed Consolidated Statement of Comprehensive Income Summary (For the six months ended June 30) | Item | 2024 (S$) | 2023 (S$) | | :--- | :--- | :--- | | Revenue | 13,989,129 | 10,740,265 | | Gross profit | 3,403,973 | 905,546 | | Operating loss | (1,242,169) | (2,683,109) | | Loss after income tax | (1,334,036) | (2,654,341) | | Loss attributable to equity holders of the company | (1,334,036) | (2,857,679) | | Basic loss per share (S$ cents) | (0.13) | (0.28) | Condensed Consolidated Statement of Financial Position As of June 30, 2024, the Group's total assets were S$50.31 million, total liabilities S$11.55 million, and equity attributable to equity holders was S$38.75 million Condensed Consolidated Statement of Financial Position Summary | Item | June 30, 2024 (S$) | December 31, 2023 (S$) | | :--- | :--- | :--- | | Assets | | | | Non-current assets | 23,498,141 | 24,699,166 | | Current assets | 26,809,940 | 28,601,898 | | Total Assets | 50,308,081 | 53,301,064 | | Equity and Liabilities | | | | Total equity | 38,761,266 | 40,095,075 | | Non-current liabilities | 8,667,955 | 8,953,603 | | Current liabilities | 2,878,860 | 4,252,386 | | Total Liabilities | 11,546,815 | 13,205,989 | | Total Equity and Liabilities | 50,308,081 | 53,301,064 | Notes to the Condensed Consolidated Interim Financial Statements The notes detail accounting policies, financial risk management, and key items, indicating no dividends or significant capital commitments, and a post-period resolution to liquidate two inactive subsidiaries - No dividends were paid or proposed during or after the period[140] - As of June 30, 2024, the Group had no significant capital commitments[141] - On August 27, 2024, the Board resolved to voluntarily liquidate and deregister two inactive subsidiaries (Beyond Elite Investments Limited and Sky Express Asia Limited), which is not expected to have a significant adverse impact on the Group[143]