Financial Performance - The group's revenue for the year ended December 31, 2021, was SGD 93.203 million, a significant increase from SGD 57.117 million in 2020, representing a growth of 63.2%[14] - Gross profit for the same period was SGD 13.174 million, compared to SGD 4.386 million in 2020, indicating a gross margin improvement[14] - The net profit attributable to equity holders for the year was SGD 1.547 million, a recovery from a loss of SGD 3.824 million in 2020[14] - The company recorded a net profit of approximately 2.1 million SGD in FY2021, a significant improvement from a loss of about 3.8 million SGD in FY2020, reflecting an increase of approximately 5.9 million SGD[39] - The total sales cost increased from approximately 52.7 million SGD in FY2020 to about 80.0 million SGD in FY2021, representing an increase of approximately 51.8%[29] - Other income decreased from approximately 5.1 million SGD in FY2020 to about 2.4 million SGD in FY2021, primarily due to a reduction in government support related to COVID-19[31] Assets and Liabilities - The total assets of the group increased to SGD 117.435 million in 2021 from SGD 101.289 million in 2020, reflecting a growth of 15.5%[15] - Total liabilities rose to SGD 64.525 million in 2021, up from SGD 50.577 million in 2020, marking an increase of 27.5%[15] - As of December 31, 2021, the total borrowings of the group amounted to approximately SGD 43.6 million, an increase from SGD 35.8 million as of December 31, 2020[42] - The capital debt ratio as of December 31, 2021, was approximately 82.4%, up from 70.5% as of December 31, 2020, primarily due to the acquisition of property at 123 Pioneer Road, Singapore[45] - The net debt to total capital ratio was approximately 34.6% as of December 31, 2021, a slight decrease from 35.2% as of December 31, 2020, attributed to an increase in equity[46] Operational Challenges - The company anticipates challenges in the construction sector due to labor shortages and rising costs associated with foreign worker restrictions[11] - The construction industry is expected to face challenges in 2022 due to labor deployment difficulties and increased costs from compliance with preventive measures[19] - The company highlighted challenges in recruiting and retaining skilled workers due to tightening policies on foreign labor and labor shortages in Singapore, which could impact operations and project timelines[103] Strategic Focus - The company plans to focus on cash conservation, cost control, and expanding market share in response to ongoing challenges[11] - The order book remains robust, supporting the company through the fiscal year 2023, with a focus on contract delivery and selective bidding for new projects[11] - The company plans to continue monitoring the impact of COVID-19 on operations and prioritize cash conservation while actively participating in new project tenders[20] Workforce and Employment - As of December 31, 2021, the group employed 587 full-time employees, a decrease from 609 employees as of December 31, 2020[56] - The total employee costs for fiscal year 2021 amounted to approximately SGD 24.6 million, compared to SGD 20.7 million in fiscal year 2020[56] - Employee recruitment increased to 2,712, up from 2,062 in the previous year, indicating a growth in workforce[62] Market Position and Growth - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years[84] - A strategic acquisition of a local competitor is anticipated to enhance operational capabilities and increase market penetration[84] - The company provided guidance for the next fiscal year, projecting a revenue growth of 25% and aiming to reach $187.5 million[84] Customer and Supplier Relationships - The company reported that revenue from its largest and five largest customers accounted for approximately 40.0% and 86.0% of total revenue, respectively, compared to 45.4% and 94.2% in 2020[95] - The company has maintained good relationships with suppliers and subcontractors, with the largest and five largest suppliers accounting for about 6.0% and 16.6% of total procurement, respectively, consistent with the previous year[96] Corporate Governance - The board of directors consists of two executive directors and three independent non-executive directors, ensuring compliance with corporate governance standards[180] - The company has adopted a board diversity policy to enhance efficiency and ensure a balance of skills, experience, and perspectives[190] - Independent non-executive directors have confirmed their independence in accordance with listing rules, ensuring adherence to governance standards[185] Environmental and Social Responsibility - The company is committed to environmental policies and has not faced any significant legal or regulatory issues related to environmental protection during the year[90] - The company has adopted a code of conduct for securities trading by directors and employees, ensuring compliance with relevant regulations[192]
伟源控股(01343) - 2021 - 年度财报