Financial Performance - The group's revenue for the fiscal year ended December 31, 2022, was approximately SGD 102.7 million, representing a 10.2% increase from SGD 93.2 million in the previous year[9]. - The gross profit for the fiscal year 2022 was SGD 12.2 million, down from SGD 13.2 million in the previous year[9]. - Revenue increased from approximately 93.2 million SGD in FY2021 to approximately 102.7 million SGD in FY2022, representing a growth of about 10.2%[19]. - Contract engineering revenue rose by approximately 6.7 million SGD, driven by recovery from COVID-19 impacts and significant progress in power and telecommunications cable installation projects[19]. - Cost of sales increased from approximately 80.0 million SGD in FY2021 to approximately 90.5 million SGD in FY2022, an increase of about 13.1%[20]. - Gross profit decreased from approximately 13.2 million SGD in FY2021 to approximately 12.2 million SGD in FY2022, with the gross profit margin declining from approximately 14.1% to approximately 11.9%[21]. - Other income and net other gains decreased from approximately 2.4 million SGD in FY2021 to approximately 2.0 million SGD in FY2022, mainly due to reduced COVID-19 related government subsidies[22]. - The company recorded a net profit of approximately 2.7 million SGD in FY2022, up from approximately 2.1 million SGD in FY2021, an increase of about 0.6 million SGD[29]. Assets and Liabilities - The total assets as of December 31, 2022, amounted to SGD 112.4 million, while total liabilities were SGD 57.4 million, resulting in total equity of SGD 55.1 million[11]. - As of December 31, 2022, total borrowings amounted to approximately 35.6 million SGD, down from 43.6 million SGD as of December 31, 2021[32]. - The debt-to-equity ratio improved to approximately 64.7% as of December 31, 2022, compared to 82.4% as of December 31, 2021[33]. - The net debt-to-total capital ratio decreased to approximately 23.9% as of December 31, 2022, from 34.6% as of December 31, 2021[34]. Operational Challenges and Strategies - The group anticipates challenges in the upcoming fiscal year due to rising material costs and increased borrowing costs, which may impact overall profitability[13]. - The strategy for 2023 includes prioritizing cash savings, cost control measures, and actively bidding for new projects to strengthen market position[14]. - The group will continue to monitor the recovery speed of the market from COVID-19 and assess its impact on operations[14]. - The group aims to explore business opportunities while being prudent during this period[14]. Employee and Administrative Matters - The total employee cost for fiscal year 2022 was approximately SGD 25.8 million, compared to SGD 24.6 million in fiscal year 2021, reflecting an increase of about 4.9%[42]. - The company employed 618 full-time employees as of December 31, 2022, an increase from 587 employees in the previous year[42]. - Administrative expenses decreased from approximately 10.1 million SGD in FY2021 to approximately 9.8 million SGD in FY2022[23]. - The company has a structured annual audit system to evaluate employee performance, which influences salary increases, bonuses, and promotions[42]. Corporate Governance - The company is committed to good corporate governance and has adopted all code provisions of the Corporate Governance Code[135]. - The board consists of two executive directors and three independent non-executive directors, ensuring compliance with corporate governance standards[141]. - The remuneration committee has reviewed the compensation policies and structures for all directors and senior management, ensuring alignment with market practices[149]. - The nomination committee is responsible for evaluating the board's structure and recommending suitable candidates for board membership[151]. - Independent non-executive directors have confirmed their independence in accordance with listing rules, ensuring compliance with governance standards[141]. Environmental, Social, and Governance (ESG) Matters - The environmental, social, and governance (ESG) report covers the group's performance from January 1, 2022, to December 31, 2022, and is available on the Hong Kong Stock Exchange and the company's website[174]. - The report includes key performance indicators related to environmental and social aspects, with a focus on quantifying data for emissions and energy consumption[177]. - The company adheres to the ESG reporting principles of materiality, quantification, balance, and consistency to ensure accurate and fair representation of its performance[177]. - The board oversees all ESG matters and ensures compliance with relevant laws and regulations[182]. - The group has established an environmental management system based on ISO 14001:2015 to systematically manage environmental issues and improve performance[190]. Market and Customer Relations - The company faces customer concentration risk, with five major customers accounting for approximately 82.2% of total revenue, which poses a risk to business operations if any major customer significantly reduces their projects[75]. - The company's revenue from its largest and five largest customers accounted for approximately 46.9% and 82.2% of total revenue, respectively, compared to 40.0% and 86.0% in the previous year[71]. - The company has maintained a good working relationship with suppliers and subcontractors, with the largest and five largest subcontractors accounting for approximately 11.87% and 33.9% of total procurement, respectively, compared to 7.7% and 25.5% in the previous year[72]. Future Outlook - The company aims to reduce greenhouse gas emissions intensity by 5% by 2030, using fiscal year 2022 as the baseline[193]. - The company is actively exploring new market opportunities and potential acquisitions to drive growth[64]. - The management team is committed to continuous improvement in financial planning and internal control systems[55].
伟源控股(01343) - 2022 - 年度财报