Financial Performance - For the fiscal year ending June 30, 2022, the company's revenue decreased by 12.3% to approximately SGD 23.1 million from about SGD 26.3 million in the previous year[12]. - The company's gross profit fell by 36.1% to approximately SGD 1.4 million, down from SGD 2.2 million in the prior year, primarily due to COVID-19 related disruptions[12]. - The gross margin decreased from approximately 8.5% in the previous year to about 6.2% for the fiscal year ending June 30, 2022[12]. - The net loss after tax increased by 237.4% to SGD 0.6 million, compared to a loss of SGD 0.2 million in the previous year[12]. - Total revenue decreased by approximately 3.2 million Singapore dollars or about 12.3% to approximately 23.1 million Singapore dollars for the year ended June 30, 2022, compared to 26.3 million Singapore dollars for the year ended June 30, 2021[17]. - Gross profit for the year ended June 30, 2022, was approximately 1.4 million Singapore dollars, a decrease of about 36.1% from approximately 2.2 million Singapore dollars for the year ended June 30, 2021, with a gross margin of 6.2%[23]. - Other income for the year ended June 30, 2022, was approximately 0.7 million Singapore dollars, a decrease from approximately 1.0 million Singapore dollars in 2021, primarily due to a reduction in COVID-19 government subsidies[25]. Project and Market Outlook - As of June 30, 2022, the company had 39 projects with a nominal or estimated contract value of approximately SGD 196.2 million, of which SGD 21.7 million was recognized as revenue during the fiscal year[13]. - The Singapore construction sector is expected to gradually improve, with projected construction demand reaching between SGD 27 billion and SGD 32 billion in 2022, with public sector projects accounting for 60% of this demand[13]. - The company is well-positioned to capitalize on new opportunities in the recovering Singapore construction industry, given its strong track record in public housing projects[7]. - The company anticipates that the easing of COVID-19 restrictions will facilitate the return of foreign workers, further supporting the construction sector's recovery[13]. Operational Challenges - The ongoing geopolitical tensions, such as the Russia-Ukraine war, have exacerbated global supply chain pressures and inflation, impacting the company's operational costs[12]. - The number of public sector projects contributing to revenue was 57, accounting for 70.7% of total revenue, while private sector projects numbered 11, contributing 29.3%[17]. Financial Position and Management - Trade receivables as of June 30, 2022, were approximately 5.3 million Singapore dollars, down from approximately 7.1 million Singapore dollars as of June 30, 2021[34]. - Contract assets (excluding receivables for warranty) were approximately 24.4 million Singapore dollars as of June 30, 2022, compared to approximately 28.6 million Singapore dollars as of June 30, 2021[35]. - The company did not recommend a final dividend for the year ended June 30, 2022, compared to zero Singapore dollars in 2021[40]. - Administrative expenses increased slightly to approximately 2.8 million Singapore dollars for the year ended June 30, 2022, from approximately 2.7 million Singapore dollars in 2021, mainly due to increased employee salaries and training costs[30]. - Financing costs remained stable at approximately 5,000 Singapore dollars for the year ended June 30, 2022, compared to approximately 4,000 Singapore dollars in 2021[31]. - As of June 30, 2022, the group's total cash and bank balances were approximately SGD 12.9 million, down from SGD 17.7 million as of June 30, 2021[41]. - The group maintained a zero debt ratio as of June 30, 2022, consistent with the previous year[47]. - The total employee cost for the year ended June 30, 2022, was approximately SGD 5.1 million, an increase from SGD 4.3 million in 2021, reflecting the hiring of additional staff[50]. Corporate Governance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules, ensuring compliance for the fiscal year ending June 30, 2022[88]. - The board of directors is responsible for overall strategic planning, business development, and corporate governance, holding regular meetings throughout the year to monitor business performance[90]. - The company has confirmed compliance with the standard code of conduct for securities trading by all directors for the fiscal year ending June 30, 2022[89]. - The company has established various committees to assist the board in fulfilling its corporate governance responsibilities[90]. - The company’s independent directors are tasked with providing independent judgment and oversight of the company’s operations[72][77]. - The company has maintained high standards of corporate governance to protect shareholder interests and enhance corporate value[87]. - The board consists of three executive directors and three independent non-executive directors, ensuring a balanced governance structure[95]. - The company held four board meetings and two committee meetings during the fiscal year ending June 30, 2022, demonstrating active governance engagement[97]. Risk Management - The company has developed a risk management policy to identify, assess, and manage key business risks, with departments responsible for their own risk management[130]. - The audit committee's responsibilities include reviewing risk management and internal control systems, ensuring robust financial reporting[108]. - The company aims to provide reasonable assurance regarding the effectiveness of its risk management and internal control systems, rather than absolute assurance[130]. - The board has reviewed the effectiveness of the group's risk management and internal control systems and deemed them effective and adequate as of June 30, 2022[131]. Shareholder Information - As of June 30, 2022, the major shareholders include Lead Development, which holds 550,000,000 shares, representing 55.00% of the issued share capital[171]. - Mr. Hong Wei-Kun and Mr. Hong Guo-Guang each hold 550,000,000 shares, also representing 55.00% of the issued share capital, with Mr. Hong Wei-Kun having a beneficial ownership of 87.27% in Lead Development[165]. - The company did not purchase, sell, or redeem any of its listed securities during the year ending June 30, 2022[176]. - There were no arrangements made for directors to acquire shares or debentures of the company or any corporate body during the year ending June 30, 2022[177]. - The company has not disclosed any significant contracts involving the directors or related entities during the year ending June 30, 2022[178]. - No significant contracts were reported involving the controlling shareholders during the year ending June 30, 2022[179].
坤集团(00924) - 2022 - 年度财报