HPC HOLDINGS(01742) - 2025 - 中期财报

Company Information Company Overview and Governance Structure HPC Holdings Limited, an investment holding company with subsidiaries in general contracting and engineering, maintains robust corporate governance through its board and committees, with Mr. Ong Yeong Teng serving as Chairman and CEO - HPC Holdings Limited is incorporated in the Cayman Islands, primarily engaged in investment holding, with subsidiaries involved in general construction, engineering design, and consulting services[58][60] - The Company has an Audit Committee, Remuneration Committee, and Nomination Committee, comprising independent non-executive and executive directors, to oversee corporate governance[5] - Mr. Ong Yeong Teng serves concurrently as the Company's Chairman and Chief Executive Officer, an arrangement the Board believes is in the Group's overall interest[5][35] Management Discussion and Analysis Business Review The Group secured S$481.81 million in new projects, boosting its order book to S$1,071 million, and managed project completions and ongoing works amidst a challenging Singapore construction market - The Singapore construction market faces challenges of high construction costs, limited human resources, and increased bidding competition, leading to narrower profit margins[8] - The Group was awarded four significant projects in the first half of 2025, with new awards totaling S$481.81 million[9] - As of April 30, 2025, the Group maintained a strong order book totaling S$1,071 million[9] - The Group completed three projects during the interim period and has eleven ongoing projects, with three major projects expected to be completed in Q3-Q4 2025[10][11] Financial Review The Group experienced strong construction activity recovery, with revenue up 35.43% to S$117.63 million and gross profit surging 117.24% to S$6.99 million, while a one-time acquisition gain boosted net profit after tax to S$31.34 million, with no interim dividend declared Interim Period Key Financial Data (S$ thousand) | Indicator | Six Months Ended April 30, 2025 | Six Months Ended April 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 117,632 | 86,859 | +35.43% | | Gross Profit | 6,986 | 3,216 | +117.24% | | Gross Profit Margin | 5.94% | 3.70% | +2.24pp | | Profit Before Tax | 31,752 | 1,355 | +2243.39% | | Profit for the Period | 31,342 | 644 | +4751.24% | | Basic Earnings Per Share (Singapore cents) | 1.96 | 0.04 | +4800% | - Revenue growth was primarily due to increased construction activities from several major ongoing projects commencing during the interim period[13] - Gross profit margin increased to 5.94%, mainly due to the completion of pre-Covid-19 projects[13] - The Group recorded a one-time bargain purchase gain of S$27.38 million from an acquisition, significantly boosting profit before tax[15][79] - Administrative expenses increased by approximately S$869 thousand, primarily due to depreciation of acquired assets[16] - The Company did not declare any interim dividend for the period[19] Liquidity, Financial Resources and Gearing The Group relies on internally generated funds and low-risk loan financing for working capital, maintaining a current ratio of 1.63 and reducing its debt-to-equity ratio to 12.32% through loan repayments - The Group primarily relies on internally generated funds for working capital and gradually introduces low-risk loan financing to optimize capital costs[20] Current Ratio and Debt-to-Equity Ratio | Indicator | April 30, 2025 | October 31, 2024 | | :--- | :--- | :--- | | Current Ratio | 1.63 | 1.66 | | Debt-to-Equity Ratio | 12.32% | 20.91% | - The decrease in the debt-to-equity ratio was mainly due to the gradual repayment of loans funding the redevelopment project at 7 Kung Chong Road, Singapore[21] Foreign Exchange Risk The Group's foreign exchange risk is minimal as most income and expenses are denominated in Singapore Dollars, thus no hedging arrangements are employed - The Group's foreign exchange risk is minimal as most income and expenses are denominated in Singapore Dollars[22] - The Group does not employ any hedging arrangements, and all foreign currency transactions are entered into at spot rates[22] Mortgage or Charge on the Group's Assets As of April 30, 2025, the Group has mortgaged acquired land to secure bank loans, with an additional charge provided by its subsidiary, HPC Builders Pte Ltd - The Group has mortgaged acquired land to obtain bank loans[23] - HPC Builders Pte Ltd., a subsidiary of the Company, also provided a charge to the same bank for the same project as additional collateral[23] Contingent Liabilities and Financial Guarantees The Group is involved in work injury lawsuits, but no significant contingent liabilities are expected as these are generally covered by insurance, and no financial guarantees have been granted to third parties other than asset mortgages - The Group is involved in several work injury lawsuits, which are generally covered by insurance, and no significant contingent liabilities are expected[24] - As of April 30, 2025, no financial guarantees have been granted to third parties by the Group, other than asset mortgages[24] Capital Expenditure and Capital Commitments During the interim period, the Group's capital expenditure was primarily allocated to purchasing construction equipment, fixtures, and additions and alterations to existing properties - During the interim period, the Group's capital expenditure was primarily for the purchase of construction equipment and fixtures, as well as certain additions and alterations to existing properties[25] Events After the Reporting Period As of the date of this interim report, the Group has no significant events after the reporting period - There were no significant events after the reporting period and up to the date of this interim report[26] Employee Information As of April 30, 2025, the Group employed 788 individuals, with total staff costs amounting to approximately S$14.1 million, a decrease from the prior period, and provides training, particularly in workplace health and safety - As of April 30, 2025, the Group had 788 employees (including foreign workers)[27] Total Staff Costs (S$ thousand) | Indicator | Six Months Ended April 30, 2025 | Six Months Ended April 30, 2024 | | :--- | :--- | :--- | | Total Staff Costs | 14,100 | 15,100 | - The Group's employees are remunerated based on their scope of work and responsibilities; local employees are entitled to discretionary bonuses, while foreign workers are remunerated based on their skill levels and are eligible for contract renewal[27] - The Human Resources Department arranges training for employees from time to time, particularly in workplace health and safety[27] Outlook Singapore's construction sector faces a strong and diversified outlook, with total construction demand projected to be between S$47 billion and S$53 billion in nominal value for 2025, driven by major development projects, while the Group strategically expands into land optimization and development - The Building and Construction Authority of Singapore projects total construction demand in nominal value to range between S$47 billion and S$53 billion for 2025, with actual demand between S$35 billion and S$39 billion[28] - Strong demand is driven by major projects such as Changi Airport Terminal 5, Marina Bay Sands expansion, public housing, and high-specification industrial buildings[28] - The Group will see the completion of three large-scale projects, solidifying its reputation in process systems, cleanroom facilities, and pharmaceutical construction[30] - The Group is strategically venturing into land optimization and development, collaborating with marketing agencies, and offering new warehouses equipped with cold room facilities to expand its business model[30] - Despite a healthy order book, the Group must contend with margin pressures from rising material costs, increased labor expenses, and heightened industry competition[31] - Management is committed to selectively acquiring projects, focusing on higher-margin opportunities, operational excellence, and maintaining adaptability[31] Corporate Governance and Other Information Share Option Scheme The Group