Economic Outlook - Singapore's GDP is projected to grow by approximately 4% in 2024, compared to 1.1% growth in 2023, with the construction sector leading at 4.8% growth[8]. - The annual construction demand in Singapore is projected to range from SGD 31 billion to SGD 38 billion from 2025 to 2028, with the public sector contributing SGD 19 billion to SGD 23 billion annually during this period[45]. Company Performance - The group’s revenue for the fiscal year decreased by approximately 41.3% to about SGD 169.8 million from approximately SGD 289.2 million in the previous period[29]. - The gross profit dropped significantly from approximately SGD 13 million to a gross loss of about SGD 5 million, representing a decline of approximately 138.6%[29]. - The group recorded a net loss after tax of approximately SGD 8.48 million, a decline of about 370% compared to a net profit of approximately SGD 3.10 million in the previous period[33]. - The company achieved a significant milestone with a total contract value of SGD 461.51 million in 2024, enhancing its reputation and opening new development opportunities, particularly in the pharmaceutical and large food sectors[45]. Project Management - In the fiscal year ending October 31, 2024, HPC Holdings Limited successfully secured six new projects, with a total contract value of SGD 461.51 million[25]. - The company faced increased competition and missed two major projects, impacting management efficiency and overall performance for the year[8]. - The company has emphasized flexibility and agility in securing projects amid fierce competition[25]. - The total number of new projects awarded in 2024 reflects the company's ability to adapt to market demands and external economic factors[25]. Market Challenges - The construction market in Singapore remains highly competitive, with significant challenges including rising prices of construction materials and subcontractor services[24]. - The company adopted a more cautious bidding process and pricing strategy in response to the current market challenges, focusing on sustainable and competitive bids[24]. - The increase in project bidding prices indicates a trend of rising construction costs throughout the fiscal year[24]. Financial Health - As of October 31, 2024, the group had a current ratio of 1.66, down from 1.89 a year earlier, indicating a decrease in liquidity[36]. - The group’s debt-to-equity ratio improved to 19.55% from 21.10% due to loan repayments during the fiscal year[37]. - Employee costs totaled approximately SGD 30 million for the fiscal year, down from SGD 32 million in the previous year[44]. Corporate Governance - The company has complied with the corporate governance code and has implemented good corporate governance elements in its management structure and internal controls[51]. - The audit committee reviewed the financial performance for the fiscal year, ensuring that the financial statements were prepared in accordance with applicable standards and regulations[54]. - The company has adopted the standard code for directors' securities trading as per the listing rules, confirming compliance by all directors for the fiscal year[62]. - The board consists of five directors, with independent non-executive directors making up 60% of the board, ensuring a balanced and independent judgment[68]. Shareholder Information - The company did not recommend the payment of a final dividend for the fiscal year, with no arrangements for shareholders to waive or agree to waive any dividends[132]. - The board will consider various factors, including the group's financial performance and capital needs, when deciding on future dividend payments[125][126]. - The company has maintained the minimum public float required by the listing rules as of the report date[173]. Sustainability and Compliance - The company is committed to zero occupational health and safety incidents and aims to ensure that construction waste does not exceed 4% for each project[180]. - HPC emphasizes the importance of anti-money laundering (AML) compliance with international and domestic laws, implementing appropriate policies and internal controls[187]. - The report is prepared in accordance with the Hong Kong Stock Exchange's ESG reporting guidelines and the Global Reporting Initiative (GRI) standards[197]. - The company has established a whistleblowing mechanism to encourage employees to report misconduct or fraud, emphasizing the importance of anti-corruption training for fostering a healthy corporate culture[111].
HPC HOLDINGS(01742) - 2024 - 年度财报