坤集团(00924) - 2023 - 年度业绩

Financial Performance Overview Consolidated Statement of Profit or Loss and Other Comprehensive Income The company recorded a significant widening of losses in FY2023, driven by increased service costs, lower gross margin, impairment losses, and foreign exchange losses Summary of Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2023 (SGD) | 2022 (SGD) | | :--- | :--- | :--- | | Revenue | 50,607,886 | 23,058,355 | | Cost of services | (48,135,476) | (21,630,075) | | Gross profit | 2,472,410 | 1,428,280 | | Other income | 310,803 | 661,429 | | Other gains and losses | (186,135) | 315,216 | | Impairment losses on financial and contract assets | (700,000) | (175,768) | | Administrative expenses | (3,504,879) | (2,805,560) | | Finance costs | (4,810) | (4,565) | | Loss before tax | (1,612,611) | (580,968) | | Income tax credit/(expense) | 63,864 | (36,875) | | Loss for the year | (1,548,747) | (617,843) | | Total comprehensive loss for the year attributable to owners of the Company | (1,335,882) | (617,843) | | Basic and diluted loss per share (Singapore cents) | (0.15) | (0.06) | Consolidated Statement of Financial Position As of June 30, 2023, non-current assets decreased significantly due to the disposal of investment property, while current assets slightly increased and current liabilities rose, resulting in stable total equity Summary of Consolidated Statement of Financial Position | Indicator | 2023 (SGD) | 2022 (SGD) | | :--- | :--- | :--- | | Assets | | | | Total non-current assets | 416,328 | 1,504,779 | | Total current assets | 50,119,969 | 49,166,138 | | Liabilities | | | | Total current liabilities | 14,091,776 | 12,753,394 | | Total non-current liabilities | 35,572 | 172,692 | | Equity | | | | Equity attributable to owners of the Company | 36,408,949 | 37,744,831 | | Net assets | 36,408,949 | 37,744,831 | Notes to the Consolidated Financial Statements General Information Khoon Group Limited was incorporated in the Cayman Islands, primarily provides electrical engineering services, and was listed on the Main Board of the HKEX on July 5, 2019 - The company was incorporated in the Cayman Islands on July 24, 2018, and listed on the Main Board of the Hong Kong Stock Exchange on July 5, 2019[11] - The company's principal business is the provision of electrical engineering services, with its operating subsidiary being Khoon Engineering Contractor Pte Ltd[28] - Southern Heritage is the company's direct ultimate parent company, and Mr Tan Chee is the ultimate controlling shareholder[12] Basis of Preparation and Accounting Policies The consolidated financial statements are prepared in accordance with IFRS, with new and revised standards adopted during the period having no material impact on accounting policies - The consolidated financial statements have been prepared in accordance with all applicable International Financial Reporting Standards (IFRSs) issued by the IASB[30] - The Group has applied several amendments and annual improvements for the first time, with no changes to accounting policies or retrospective adjustments made[15][16][31] - New and revised IFRSs that have been issued but are not yet effective are not expected to have a significant impact on the consolidated financial statements[18][35] Revenue and Segment Information FY2023 revenue grew significantly by 119.5% to SGD 50.6 million, primarily from electrical engineering services, with public sector clients contributing 91.0% and all revenue originating from Singapore - Revenue represents the fair value of amounts received and receivable for the provision of electrical engineering services, including statutory approval assistance, system customization/installation, and testing/commissioning services[20] - For the year ended June 30, 2023, 100% of the Group's total revenue was derived from Singapore[40] Revenue Analysis | Revenue Source | 2023 (SGD) | 2022 (SGD) | | :--- | :--- | :--- | | Provision of electrical engineering services | 50,607,886 | 23,058,355 | Other Income Other income decreased year-over-year in FY2023, mainly due to a reduction in COVID-19 related government grants - The decrease in other income was primarily due to a reduction in COVID-19 related government grants in FY2023[42][160] Details of Other Income | Item | 2023 (SGD) | 2022 (SGD) | | :--- | :--- | :--- | | Bank interest income | 91,551 | 29,428 | | Government grants | 131,567 | 466,133 | | Rental income | 17,400 | 34,800 | | Training income | 70,285 | 128,527 | | Others | – | 2,541 | | Total | 310,803 | 661,429 | Other Gains and Losses The company shifted from a gain to a loss in FY2023, primarily influenced by a net foreign exchange loss - The decrease in other gains was mainly due to an increase in foreign exchange losses resulting from the depreciation of the USD and HKD against the SGD[48][161] Details of Other Gains and Losses | Item | 2023 (SGD) | 2022 (SGD) | | :--- | :--- | :--- | | Gain on disposal of property, plant and equipment | 54,682 | – | | Gain on disposal of investment property | 240,819 | – | | Write-off of trade receivables | (58,703) | – | | Net foreign exchange (loss)/gain | (422,933) | 315,216 | | Total | (186,135) | 315,216 | Impairment Losses on Financial and Contract Assets Impairment losses increased significantly in FY2023, mainly due to a higher provision for impairment of contract assets - The increase in impairment losses was primarily due to an additional provision for impairment of contract assets arising from the assessment of expected credit losses[53][151] Impairment Losses on Financial and Contract Assets | Item | 2023 (SGD) | 2022 (SGD) | | :--- | :--- | :--- | | Trade receivables | – | (53,369) | | Contract assets | (700,000) | (122,399) | | Total | (700,000) | (175,768) | Finance Costs Finance costs remained stable in FY2023 - Finance costs were approximately SGD 5,000, remaining largely consistent with the previous year[51][162] Details of Finance Costs | Item | 2023 (SGD) | 2022 (SGD) | | :--- | :--- | :--- | | Interest on lease liabilities | 4,810 | 4,565 | Income Tax (Credit)/Expense The company shifted from an income tax expense to a credit in FY2023, mainly due to the reversal of over-provision of income tax expense in prior years - The income tax credit of approximately SGD 64,000 in FY2023 was mainly due to the reversal of an over-provision of income tax expense from prior years amounting to approximately SGD 113,000[58][59][64] Details of Income Tax (Credit)/Expense | Item | 2023 (SGD) | 2022 (SGD) | | :--- | :--- | :--- | | Current tax: Provision for the year | 84,181 | 57,640 | | Over-provision in prior years | (112,816) | – | | Deferred tax credit | (35,229) | (20,765) | | Total | (63,864) | 36,875 | Loss for the Year The loss for FY2023 widened, primarily impacted by a lower gross margin, increased provision for impairment of contract assets, and higher foreign exchange losses - The loss for FY2023 was approximately SGD 1.5 million, an increase from the SGD 0.6 million loss in FY2022[1][65] Composition of Loss for the Year | Item | 2023 (SGD) | 2022 (SGD) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 155,609 | 303,318 | | Depreciation of investment property | 14,687 | 16,022 | | Depreciation of right-of-use assets | 131,180 | 127,738 | | Impairment loss on trade receivables | – | 53,369 | | Impairment loss on contract assets | 700,000 | 122,399 | | Auditor's remuneration | 160,000 | 175,000 | | Cost of materials recognised as cost of services | 23,766,707 | 8,881,252 | | Subcontracting costs recognised as cost of services | 17,124,853 | 7,840,286 | Dividends No dividends were paid, declared, or proposed for the year ended June 30, 2023 - No dividends were paid, declared, or proposed to the owners of the Company for the years ended June 30, 2023 and 2022[96][165] Loss Per Share Basic and diluted loss per share for FY2023 was 0.15 Singapore cents, an increase from FY2022, with no dilutive securities outstanding - Basic and diluted loss per share were the same as the Group had no potentially dilutive securities from convertible shares[105] Loss Per Share | Indicator | 2023 | 2022 | | :--- | :--- | :--- | | Loss for the year attributable to owners of the Company (SGD) | (1,548,747) | (617,843) | | Weighted average number of ordinary shares in issue | 1,000,000,000 | 1,000,000,000 | | Basic and diluted loss per share (Singapore cents) | (0.15) | (0.06) | Trade Receivables Trade receivables increased to SGD 7.8 million in FY2023, with the company assessing customer credit quality and using a simplified approach to measure expected credit losses - The Group grants a credit period on trade receivables to all its customers, which is generally 30 to 35 days from the invoice date[107] Trade Receivables | Item | 2023 (SGD) | 2022 (SGD) | | :--- | :--- | :--- | | Trade receivables | 7,886,583 | 5,354,752 | | Less: Provision for impairment loss | (53,369) | (53,369) | | Net | 7,833,214 | 5,301,383 | Ageing Analysis of Trade Receivables | Ageing | 2023 (SGD) | 2022 (SGD) | | :--- | :--- | :--- | | Within 30 days | 5,094,870 | 4,210,719 | | 31 to 60 days | 1,983,733 | 609,970 | | 61 to 90 days | 89,057 | 124,686 | | 91 to 120 days | 51,168 | 226,052 | | Over 120 days | 614,386 | 129,956 | | Total | 7,833,214 | 5,301,383 | Contract Assets/Liabilities Contract assets increased to SGD 31.6 million in FY2023, driven by retention money and uncertified work, while a loss provision of SGD 700,000 was made for an unbilled project - The movement in contract assets is mainly due to the scale and number of contract works completed but not yet certified and retention money receivable during the defect liability period[118] - In FY2023, the Group made a loss provision of SGD 700,000 as a customer failed to settle unbilled work-in-progress[120] Contract Assets and Liabilities | Item | 2023 (SGD) | 2022 (SGD) | | :--- | :--- | :--- | | Contract assets | 31,593,789 | 29,446,514 | | Contract liabilities | (188,776) | (52,444) | | Net | 31,405,013 | 29,394,070 | Details of Contract Assets | Item | 2023 (SGD) | 2022 (SGD) | | :--- | :--- | :--- | | Retention money receivable | 6,722,714 | 5,182,864 | | Others (unbilled revenue) | 25,847,260 | 24,548,225 | | Less: Provision for impairment loss | (822,399) | (122,399) | | Total | 31,747,575 | 29,608,690 | Analysis of Contract Liabilities | Item | 2023 (SGD) | 2022 (SGD) | | :--- | :--- | :--- | | Contract liabilities | 342,562 | 214,620 | | Revenue recognised that was included in the contract liability balance at the beginning of the year | 214,620 | 27,418 | Trade and Other Payables Trade and other payables increased to SGD 13.6 million in FY2023, with a significant rise in trade payables, and credit periods from suppliers ranging from 30 to 90 days - The credit period from suppliers and subcontractors is 30 to 90 days or payment upon delivery[131] Details of Trade and Other Payables | Item | 2023 (SGD) | 2022 (SGD) | | :--- | :--- | :--- | | Trade payables | 8,073,129 | 2,435,219 | | Trade accruals | 1,966,447 | 6,530,127 | | Retention money payable | 2,816,796 | 2,732,481 | | Salaries and CPF payable | 245,098 | 182,249 | | GST payable | 286,568 | 133,048 | | Rental deposits received | – | 5,800 | | Accrued audit fees | 160,000 | 161,000 | | Others | 70,776 | 24,976 | | Total | 13,618,814 | 12,204,900 | Ageing Analysis of Trade Payables | Ageing | 2023 (SGD) | 2022 (SGD) | | :--- | :--- | :--- | | Within 30 days | 2,766,872 | 1,399,199 | | 31 to 60 days | 3,120,266 | 657,350 | | 61 to 90 days | 996,153 | 206,711 | | 91 to 120 days | 763,456 | 27,951 | | Over 120 days | 426,382 | 144,008 | | Total | 8,073,129 | 2,435,219 | Share Capital As of June 30, 2023, the company's authorised and issued share capital remained unchanged, with management regularly reviewing the capital structure to optimize shareholder returns - The Group manages its capital to ensure continuous operation and maximise shareholder returns by optimising the equity balance[126][133] Authorised Share Capital | Date | Number of Ordinary Shares | Par Value (HKD) | Share Capital (HKD) | | :--- | :--- | :--- | :--- | | 1 July 2021, 30 June 2022, 1 July 2022 and 30 June 2023 | 1,500,000,000 | 0.01 | 15,000,000 | Issued and Fully Paid Share Capital | Date | Number of Ordinary Shares | Share Capital (SGD) | | :--- | :--- | :--- | | 1 July 2021, 30 June 2022, 1 July 2022 and 30 June 2023 | 1,000,000,000 | 1,742,143 | Management Discussion and Analysis Business Review The Group operates as a mechanical and electrical engineering contractor in Singapore, focusing on electrical engineering solutions with a solid track record in public residential development projects - The Group is a Singapore-based M&E engineering contractor providing customisation/installation of electrical systems, assistance in obtaining statutory approvals, and testing and commissioning services[142] - Service demand spans new building development, redevelopment, A&A works, and upgrading projects across residential, commercial, and industrial buildings[138][142] - The Group has a solid track record in undertaking public residential development projects initiated by the Housing & Development Board[142] Financial Review FY2023 saw significant revenue growth but a decline in gross margin, leading to a wider net loss after tax due to rising costs, increased impairment provisions, and exchange losses - Revenue increased by 119.5% to SGD 50.6 million, driven by post-COVID-19 recovery and an influx of foreign workers accelerating project progress[139][143] - Gross profit margin decreased by 1.3 percentage points to 4.9%, mainly due to increased costs of raw materials, salaries, and subcontracting[143][159] - Net loss after tax increased by 150.7% to SGD 1.5 million[143] - In FY2023, public sector projects contributed 91.0% of revenue, while private sector projects contributed 9.0%[146] Key Financial Metrics Comparison for FY2023 | Indicator | 2023 (SGD million) | Change (%) | | :--- | :--- | :--- | | Revenue | 50.6 | 119.5% | | Gross Profit | 2.5 | 73.1% | | Gross Profit Margin | 4.9% | -1.3 p.p. | | Loss for the year | (1.5) | 150.7% | Prospects Singapore's construction demand is projected to grow, driven by public sector projects, and the Group is well-positioned to capture market opportunities with its expertise - The Building and Construction Authority of Singapore projects construction demand to reach SGD 27 billion to SGD 32 billion in 2023, with the public sector accounting for 60%[144] - Total construction demand from 2024 to 2027 is projected to be between SGD 25 billion and SGD 32 billion annually, with the public sector contributing SGD 14 billion to SGD 18 billion per year[144] - As of June 30, 2023, the Group had 38 projects on hand with a nominal or estimated contract value of approximately SGD 218.4 million[144] Liquidity, Financial Resources and Capital Structure The Group funds its operations through cash, operating cash flows, and share offer proceeds, maintaining a zero gearing ratio and a sound financial position - The Group funds its working capital, capital expenditures, and other liquidity needs through cash and cash equivalents, cash flows from operations, and net proceeds from the Share Offer[68] - As of June 30, 2023, the Group's gearing ratio was zero[70][94] - As of June 30, 2023, total bank balances and cash were approximately SGD 10.2 million, with no bank borrowings[175] Pledge of Assets As of June 30, 2023, the Group had pledged deposits of approximately SGD 74,000 as collateral for performance guarantees - As of June 30, 2023, the Group had pledged deposits of approximately SGD 74,000 as part of the collateral for performance guarantees in favour of the Group’s customers[176] Foreign Exchange Risk The Group faces foreign exchange risk from bank balances denominated in USD and HKD but does not expect a significant impact on operating results and currently uses no hedging instruments - The Group is exposed to foreign exchange risk from certain bank balances denominated in USD and HKD, amounting to approximately SGD 6.9 million[81] - The risk is not expected to have a significant impact on operating results, and the Group manages it by closely monitoring exchange rate movements without using hedging instruments[81] Future Plans for Material Investments or Capital Assets As of June 30, 2023, the Group had no other future plans for material investments or capital assets beyond those disclosed in the prospectus - As of June 30, 2023, the Group had no other future plans for material investments or capital assets[71][168] - During the year ended June 30, 2023, the Group had no material investments held, nor any material acquisitions or disposals of subsidiaries, associates, or joint ventures[82][178] Employees and Remuneration Policies Both employee numbers and costs increased in FY2023, with the company attracting and retaining talent through competitive compensation, benefits, and training - As of June 30, 2023, the Group had 207 employees (2022: 147), with total staff costs of approximately SGD 7.1 million (2022: approx SGD 5.1 million)[83] - Remuneration policies are reviewed regularly, with on-the-job training, salary increments, and discretionary bonuses offered based on performance and market conditions[83] Contingent Liabilities As of June 30, 2023, the Group had performance bonds of approximately SGD 2.1 million as guarantees for the performance of its contractual obligations - As of June 30, 2023, the Group had performance bonds granted by insurance companies of approximately SGD 2.1 million (2022: approx SGD 0.6 million)[170] Capital Expenditure and Capital Commitments Capital expenditure in FY2023 was mainly for the acquisition of property, plant, and equipment, with no significant capital commitments - For the year ended June 30, 2023, the Group acquired items of property, plant and equipment of approximately SGD 30,000 (2022: approx SGD 50,000)[180] - As of June 30, 2023, the Group had no significant capital commitments[85] Change in Shareholding Southern Heritage Limited completed the acquisition of 55.0% of the Company's shares in January 2023 and made a mandatory cash offer, which received no valid acceptances - Southern Heritage Limited completed the acquisition of 55.0% of the Company's shares on January 27, 2023, for a total cash consideration of HKD 152,500,000[27][74][85] - Southern Heritage made a mandatory unconditional cash offer at HKD 0.278 per share, but received no valid acceptances[74] - The Company continues to satisfy the minimum public float requirement under the Listing Rules[74] Use of Net Proceeds from Share Offer The net proceeds of approximately SGD 16.6 million from the share offer have been mostly utilized as planned, with the remaining SGD 0.7 million expected to be fully used by December 31, 2023 - The net proceeds from the Share Offer were approximately SGD 16.6 million[182] - As of June 30, 2023, approximately SGD 0.7 million remained unutilised, mainly because acquisition plans have not been fully implemented[77] - The unutilised net proceeds are expected to be fully used on or before December 31, 2023[77] Use and Utilisation of Net Proceeds from Share Offer | Planned Use | Net Proceeds as Disclosed in Prospectus (SGD million) | Re-allocated Net Proceeds (SGD million) | Utilised up to June 30, 2023 (SGD million) | Unutilised Re-allocated Net Proceeds (SGD million) | | :--- | :--- | :--- | :--- | :--- | | Acquisition of a Singapore ACMV contractor registered under ME01 workhead with at least "L4" grading | 7.1 | 3.5 | 3.5 | – | | Strengthening the Group's manpower by recruiting additional staff | 2.5 | 1.0 | 1.0 | – | | Expanding its properties for various operational needs | 1.8 | – | – | – | | Funding upfront costs and working capital needs for electrical engineering projects (existing projects) | 1.7 | 5.2 | 5.2 | – | | Funding upfront costs and working capital needs for electrical engineering projects (potential new projects) | – | 6.5 | 6.5 | – | | Funding the acquisition of additional machinery and equipment | 1.4 | 0.7 | 0.2 | 0.5 | | Purchasing BIM software with supporting hardware and upgrading the ERP system | 0.9 | 0.5 | 0.4 | 0.1 | | Funding the acquisition of additional lorries | 0.3 | 0.3 | 0.2 | 0.1 | | Reserved for the Group's general working capital | 0.9 | 2.4 | 2.4 | – | | Total | 16.6 | 16.6 | 15.9 | 0.7 | Events After the Reporting Period As of the date of this announcement, no significant events affecting the Group have occurred after the reporting period - As of the date of this announcement, no significant events affecting the Group have occurred[183] Corporate Governance The Company has complied with the code provisions of the Corporate Governance Code as set out in Appendix 14 to the Listing Rules - The Company has complied with the code provisions of the Corporate Governance Code as set out in Part 2 of Appendix 14 to the Listing Rules[89][184] Purchase, Sale or Redemption of the Company's Listed Securities Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the year ended June 30, 2023 - During the year ended June 30, 2023, neither the Company nor any of its subsidiaries had purchased, sold or redeemed any of the Company’s listed securities[90] Audit Committee The Audit Committee has reviewed the Group's audited financial results and discussed them with management and the auditor, with no disagreements - The Audit Committee has reviewed the Group's audited financial results for the year ended June 30, 2023, and has discussed the accounting principles and practices adopted by the Group with management and the auditor, with no disagreements from the Audit Committee or the auditor[91] Directors' Securities Transactions All Directors have confirmed their compliance with the required standard of dealings in securities by directors as set out in Appendix 10 to the Listing Rules during the reporting period - All Directors who held office during the year ended June 30, 2023 have confirmed that they have complied with the Model Code and their own code of conduct regarding directors' securities transactions throughout the year[92][185] Board of Directors As of the date of this announcement, the Board of Directors comprises three executive Directors and three independent non-executive Directors - As of the date of this announcement, the Board comprises three executive Directors (Mr Ang Wee Koon, Mr Ang Kok Kwang, Mr Ang Yong Quan) and three independent non-executive Directors (Ms Leong Eng Chi, Mr Fok Wai Hung, Mr Hon Chun Kong)[93]