Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue increased by approximately 5.9% to about SGD 19.9 million, compared to approximately SGD 18.8 million in the previous fiscal year[10] - The gross profit decreased from approximately SGD 3.1 million in the fiscal year ending December 31, 2023, to approximately SGD 1.9 million for the fiscal year ending December 31, 2024, primarily due to lower gross margins on ongoing projects[10] - Revenue increased by approximately SGD 1.1 million or 5.9% from SGD 18.8 million in FY2023 to SGD 19.9 million in FY2024, primarily due to increased construction activities on public sector projects[16] - Gross profit decreased by approximately SGD 1.2 million or 38.7% from SGD 3.1 million in FY2023 to SGD 1.9 million in FY2024, with gross margin declining from 16.5% to 9.5%[19] - Profit for the year was approximately SGD 0.8 million in FY2024, compared to a loss of approximately SGD 7,000 in FY2023[23] Project and Contract Updates - As of December 31, 2024, the company had six ongoing projects (excluding joint venture projects) with a total contract value of approximately SGD 63.4 million, of which about SGD 52.0 million has been recognized as revenue[12] - The company secured two new projects with a total contract value of approximately SGD 23.8 million during the fiscal year ending December 31, 2024[13] - The company is currently constructing a four-story building for warehouse, office, dormitory, and ancillary facilities, expected to be completed by 2025[39] Industry Outlook - The construction industry in Singapore is projected to grow by 4.5% in 2024, following a strong growth of 5.8% in 2023, with nominal construction demand expected to range between SGD 47 billion and SGD 53 billion in 2025[9] - The outlook for the construction industry remains optimistic, supported by ongoing public infrastructure projects and private sector developments[8] Cost Management and Financial Health - The company is committed to strict cost control and is prepared to address potential new challenges while maintaining its market leadership[10] - Service costs rose by approximately SGD 2.2 million or 13.9% from SGD 15.8 million in FY2023 to SGD 18.0 million in FY2024, driven by increased construction activities[18] - Other income increased by approximately SGD 0.9 million from SGD 4.4 million in FY2023 to SGD 5.3 million in FY2024, mainly due to higher interest income from financial assets[20] - Administrative expenses decreased by approximately SGD 0.2 million or 2.9% from SGD 6.9 million in FY2023 to SGD 6.7 million in FY2024, attributed to reduced depreciation and professional fees[21] - As of December 31, 2024, the group had cash and bank balances of approximately SGD 3.0 million, down from SGD 13.7 million in FY2023[26] - The group’s debt stood at approximately SGD 5.4 million as of December 31, 2024, compared to SGD 5.7 million in FY2023[26] Corporate Governance - The company has fully complied with all applicable principles and code provisions of the Corporate Governance Code for the fiscal year ending December 31, 2024[115] - The board of directors held four meetings during the fiscal year ending December 31, 2024, to discuss overall strategy, operations, and financial performance[127] - The company has established a clear framework for the responsibilities and contributions of the board and management, ensuring effective governance[126] - The independent non-executive directors confirmed their independence according to the guidelines set out in the Listing Rules for the fiscal year ending December 31, 2024[122] Risk Management - The company faces significant risks due to the non-recurring nature of its projects, which may impact its financial performance if it cannot secure new contracts after current projects are completed[81] - The company has implemented credit risk policies to mitigate the impact of potential defaults on trade receivables[83] - The company has committed to taking proactive actions to address identified issues in its risk management and internal control systems[167] Employee and Workforce Management - The total employee cost for the fiscal year ending December 31, 2024, was approximately SGD 6.6 million, an increase from SGD 6.4 million in 2023, with a total of 154 employees as of December 31, 2024[38] - The company emphasizes the importance of employees as valuable assets and has implemented competitive compensation and safety measures[63] - A significant portion of the company's workforce consists of foreign employees, and any inability to hire or retain them could adversely affect operations and financial performance[83] Sustainability and Social Responsibility - The company emphasizes workplace safety and responsible environmental practices as part of its commitment to social and environmental management[186] - The company aims to balance profitability with sustainability, outlining measures taken to address the environmental and social impacts of its operations[188] - The company is committed to achieving annual environmental, social, and governance goals and continuously improving its performance in these areas[195] Shareholder Relations - The company reported no distributable reserves as of December 31, 2024, due to accumulated losses, although share premium accounts can be used for dividend distribution if debts are payable on the dividend payment date[66] - The board has resolved not to recommend any final dividend for the fiscal year ending December 31, 2024, consistent with the previous year[67] - The company has adopted a dividend policy that considers financial performance, cash flow, and other factors before declaring dividends, with the board having full discretion over dividend payments[183]
守益控股(02227) - 2024 - 年度财报