Financial Performance - For the fiscal year ending June 30, 2025, the group recorded revenue of SGD 239.9 million, an increase of 79.3% compared to the previous year[8] - The group's revenue for the fiscal year ending June 30, 2025, was SGD 239.9 million, an increase of SGD 106.1 million or 79.3% compared to SGD 133.8 million for the previous fiscal year[19] - The cost of sales for the same period was SGD 215.3 million, up SGD 89.2 million or 70.7% from SGD 126.1 million in the previous year, reflecting increased construction activities[20] - Gross profit increased from SGD 7.7 million to SGD 24.6 million, with the gross profit margin rising from 5.8% to 10.3% due to new projects providing more stable profit margins[21] - The group recorded a net profit of SGD 12.8 million for the fiscal year ending June 30, 2025, compared to SGD 1.6 million for the previous year[27] - Cash and cash equivalents as of June 30, 2025, amounted to SGD 93.7 million, an increase of SGD 52.5 million from SGD 41.2 million in the previous year[28] - The current ratio as of June 30, 2025, was 1.3, consistent with the previous year's ratio[29] - The group's total current assets were SGD 155.3 million, up from SGD 76.3 million in the previous year[29] - The debt-to-equity ratio as of June 30, 2025, was 5.6%, down from 11.5% in the previous year[31] - Other income and gains increased to SGD 2.5 million from SGD 2.2 million, primarily due to higher average bank balances[22] Project Management and Operations - The group is managing eight ongoing projects with a total contract value of SGD 810.8 million, including a significant new contract worth SGD 201 million from the Singapore Ministry of Health[8] - As of June 30, 2025, the group has five construction projects with a total contract value of SGD 623.9 million, compared to SGD 609.8 million for the previous year[13] - The group completed its first Housing and Development Board (HDB) project and received the HDB Building Award in September 2025[14] - The group has successfully delivered multiple public sector projects while maintaining high quality and safety standards[7] - The group is focused on enhancing productivity, digitalization, and sustainable practices to improve efficiency and competitiveness[9] - The group aims to leverage its strong project pipeline and rigorous growth strategy to maintain market leadership and create shareholder value[9] - The group is focused on improving its technical capabilities and project management efficiency to drive future growth[49] Economic Outlook - The construction industry in Singapore grew by 6.0% year-on-year in the second quarter of 2025, an improvement from 4.9% in the first quarter[15] - The Ministry of Trade and Industry has revised the GDP growth forecast for 2025 from "0.0% to 2.0%" to "1.5% to 2.5%"[16] - The Singapore economy is expected to expand moderately between the second half of 2025 and 2026, supported by stable external demand and planned infrastructure projects[37] - The construction demand in Singapore is projected to be between SGD 47 billion and SGD 53 billion in 2025, driven by both public and private sector projects[38] - The construction industry faces challenges such as rising labor and material costs, tight labor supply, and global uncertainties affecting profit margins[39] Corporate Governance - The company is committed to maintaining high standards in financial reporting and corporate governance practices[54] - The company emphasizes the importance of corporate governance as a key element in creating shareholder value, adhering to the corporate governance code as of June 30, 2025[76] - The board of directors is composed of a majority of independent non-executive directors, exceeding the requirement of at least one-third as per listing rules[90] - The company has maintained a high level of corporate governance to gain and maintain shareholder trust[75] - The independent non-executive directors provide impartial opinions on the company's strategy and performance, ensuring the interests of all shareholders are considered[91] - The company has established mechanisms to evaluate the effectiveness of independent non-executive directors annually[93] - The board believes that the current balance of power and appropriate safeguards are in place, despite the dual role of the Chairman and CEO[99] Management and Team Experience - Tay Yen Hua has over 51 years of experience in secretarial, accounting, and human resources roles, overseeing the group's overall business operations and financial performance[48] - Huang Shan Da has over 32 years of experience in the Singapore construction industry, responsible for project management and enhancing the group's technical capabilities[52] - Kwan Shu Ming has over 19 years of experience in accounting and management, responsible for financial and accounting operations, including the preparation and publication of financial statements[53] - Lin Ya Lie has over 30 years of experience in accounting, auditing, and finance, providing advice on corporate governance matters to the board[54] - The company has a strong management team with extensive industry experience, enhancing its operational effectiveness and strategic direction[51] - The management team is actively involved in strategic planning and decision-making processes to ensure sustainable growth[51] Shareholder Communication and Dividends - The board has proposed a final dividend of HKD 0.02 per ordinary share, amounting to approximately HKD 16,000,000 (equivalent to SGD 2,600,000)[41] - The company has adopted a dividend policy that considers financial conditions and other factors before recommending any dividends[162] - The company will continue to review its dividend policy and retains the right to update or amend it at any time[165] - The annual general meeting is scheduled for December 18, 2025, during which the proposed dividend will be voted on[168] - The company ensures that all significant resolutions presented at the shareholders' meeting are voted on independently to protect shareholder rights[137] - The company maintains effective internal control and risk management systems to safeguard shareholder investments and group assets[140] Risk Management and Compliance - The company has implemented risk management procedures to avoid significant errors, losses, or fraud[142] - The company has not established an internal audit function as per corporate governance guidelines by June 30, 2025, but will continue to assess the need for such a function annually[144] - The company has established a clear organizational arrangement with defined responsibilities and authority lines for risk management[142] - The company has implemented a Whistleblowing Policy to provide reliable channels for reporting serious misconduct, with no significant fraud or misconduct reported affecting financial statements as of June 30, 2025[147] - The company has established an Anti-Bribery and Anti-Corruption Policy in May 2022, emphasizing the highest standards of integrity and ethical behavior in its operations[148] Share Option Plan - The maximum number of shares that can be issued under the share option plan is capped at 80,000,000 shares, which represents 10% of the total issued shares on the date of listing[178] - The share option plan will remain effective for a period of ten years starting from January 8, 2020, unless terminated early by shareholders[181] - The total number of shares that can be issued due to the exercise of options under the share option plan cannot exceed 1% of the company's issued share capital within any 12-month period[176] - The company’s share option plan allows for the issuance of options to employees, directors, and other selected participants as a reward for their contributions[175] - The exercise price of the options will be determined by the board and must be the highest of the closing price on the date of grant or the average closing price over the preceding five trading days[181] - The board believes that the share option plan will enhance the group’s ability to reward contributions from employees and directors[175] Related Party Transactions - The company has no significant contracts with controlling shareholders or their subsidiaries as of June 30, 2025[196] - There were no undisclosed related party transactions that required disclosure under the listing rules[185] - The company has complied with the disclosure requirements under the listing rules regarding related party transactions[185]
光荣控股(09998) - 2025 - 年度财报