Financial Performance - The group's revenue for the year ended December 31, 2021, was approximately SGD 78.4 million, an increase of about 19.9% compared to SGD 65.4 million for the year ended December 31, 2020[5]. - Gross profit rose from approximately SGD 9.6 million for the year ended December 31, 2020, to approximately SGD 11.9 million for the year ended December 31, 2021, representing an increase of about 24%[13]. - The gross profit margin improved from approximately 14.6% for the year ended December 31, 2020, to approximately 15.2% for the year ended December 31, 2021[14]. - The group's profit after tax increased from approximately SGD 0.6 million for the year ended December 31, 2020, to approximately SGD 2.0 million for the year ended December 31, 2021[20]. - Other income decreased from approximately SGD 2.8 million for the year ended December 31, 2020, to approximately SGD 1.9 million for the year ended December 31, 2021, primarily due to a reduction in government subsidies[16]. - Financing costs increased from approximately SGD 2.4 million for the year ended December 31, 2020, to approximately SGD 2.5 million for the year ended December 31, 2021[18]. Construction Industry Outlook - The Singapore Construction Authority projects that the value of certified progress payments will rise from an estimated SGD 26 billion in 2021 to between SGD 29 billion and SGD 32 billion in 2022[5]. - The construction industry is expected to continue high growth in 2021, despite being 10.5% lower than 2019 levels due to labor shortages impacting construction activities[11]. - The group remains optimistic about the future of the Singapore road construction market and construction support services market[6]. - From 2023 to 2026, total construction demand is projected to reach between SGD 25 billion and SGD 32 billion annually, supported by public development[36]. - Approximately half of the public construction demand is anticipated to come from civil engineering projects, including major developments such as MRT projects and new hospital developments[36]. Company Strategy and Operations - The group plans to continue investing in acquiring more machinery and expanding its workforce to support operations in the road construction market[6]. - 31.8% of the net proceeds from the global offering, approximately HKD 34.8 million, will be reallocated to support the company's operations[23]. - The company has newly secured construction projects with a total contract value of approximately HKD 188 million in 2021[28]. - 20.8% of the net proceeds will be allocated to working capital to support ongoing construction projects delayed by COVID-19[28]. - The company plans to use 11% of the net proceeds to repay bank loans, improving its financial position to enhance bidding success rates[28]. Corporate Governance - The company has adopted all provisions of the Corporate Governance Code as its own corporate governance practices[62]. - The company is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[62]. - The independent non-executive director, Mr. Hsiao, has been appointed since October 20, 2017, and is a member of the audit and remuneration committees[54]. - The company has a diverse board with members having extensive backgrounds in law, finance, and engineering[54][59][60]. - The board consists of three executive directors and three independent non-executive directors, ensuring compliance with listing rules regarding independence[64]. Environmental, Social, and Governance (ESG) Initiatives - The company has established an Environmental, Social, and Governance (ESG) working group to oversee ESG initiatives and performance[155]. - The total greenhouse gas emissions for the year ended December 31, 2021, amounted to 4,805.97 tons of CO2 equivalent, a significant increase from 2,241.61 tons in 2020[179]. - The company has implemented measures to reduce diesel consumption and greenhouse gas emissions, including the use of energy-efficient equipment and optimizing transportation routes[175]. - The company encourages employees to adopt environmentally friendly practices and contribute to sustainable development[169]. - The company has developed effective management policies and internal control systems for environmental, social, and governance issues as of December 31, 2021[166]. Risk Management - The company has identified key risks including reliance on suppliers and subcontractors, and potential labor supply shortages due to government regulations in Singapore[110]. - The company is monitoring market conditions to respond flexibly to changes in the Singapore construction market[28]. - The board regularly reviews its governance practices and the effectiveness of risk management and internal control systems[68]. - The audit committee, consisting of three independent non-executive directors, is responsible for reviewing risk management and internal control systems, as well as financial reporting[82]. Financial Position - As of December 31, 2021, the group's cash and cash equivalents remained stable at approximately SGD 5.6 million[39]. - The total interest-bearing loans amounted to approximately SGD 55.3 million as of December 31, 2021, an increase of about SGD 8.9 million from approximately SGD 46.4 million as of December 31, 2020[39]. - The equity balance increased from approximately SGD 55.2 million as of December 31, 2020, to approximately SGD 57.0 million as of December 31, 2021, due to profits recorded during the year[39]. - The current ratio remained stable at approximately 1.5 times for both years ending December 31, 2020, and December 31, 2021[39]. Shareholder Information - The company did not recommend the payment of a dividend for the year ending December 31, 2021[47]. - The company has adopted a dividend policy that allows shareholders to share in profits while retaining sufficient reserves for future development[117]. - As of December 31, 2021, the company’s directors and senior executives held a total of 750,000,000 shares, representing 75% of the issued share capital[125]. - Jian Sheng Holdings Limited, owned 80% by Mr. Chen and 20% by Ms. Chen, holds 750,000,000 shares, which Mr. Chen is deemed to have full beneficial ownership of[126].
双运控股(01706) - 2021 - 年度财报