Financial Performance - The company's revenue for the year ended December 31, 2022, was approximately SGD 98.5 million, an increase of about 25.6% compared to SGD 78.4 million for the year ended December 31, 2021[6]. - Gross profit remained at approximately SGD 11.9 million for both years, but the gross profit margin decreased from about 15.2% in 2021 to approximately 12.0% in 2022 due to rising material costs and inflation[14]. - Other income decreased from approximately SGD 1.9 million in 2021 to about SGD 1.1 million in 2022, primarily due to a reduction in government subsidies[16]. - Administrative expenses decreased from approximately SGD 9.6 million in 2021 to about SGD 8.7 million in 2022[17]. - Financing costs increased from approximately SGD 2.5 million in 2021 to about SGD 2.9 million in 2022[18]. - The company's net profit after tax decreased from approximately SGD 2.0 million in 2021 to about SGD 0.6 million in 2022[20]. - Unbilled revenue increased from approximately SGD 77.4 million as of December 31, 2021, to about SGD 87.8 million as of December 31, 2022, due to new project approvals and commencement[21]. - Contract assets decreased from approximately SGD 37.7 million as of December 31, 2021, to about SGD 34.1 million as of December 31, 2022, as more project work was certified during 2022[21]. - The cash and cash equivalents decreased from approximately SGD 5.4 million as of December 31, 2021, to SGD 2.1 million as of December 31, 2022[33]. - The total interest-bearing loans increased from approximately SGD 55.3 million as of December 31, 2021, to SGD 56.5 million as of December 31, 2022[33]. - The current ratio improved from approximately 1.5 times as of December 31, 2021, to approximately 1.7 times as of December 31, 2022[33]. - The total equity increased from approximately SGD 57.0 million as of December 31, 2021, to approximately SGD 57.6 million as of December 31, 2022, due to recorded profits during the year[33]. Market Outlook - The company remains optimistic about the future of the Singapore road construction market and plans to invest in acquiring more machinery and expanding its workforce to support operations[7]. - The construction demand in Singapore is expected to remain strong, with projected annual demand of SGD 25 billion to SGD 32 billion from 2024 to 2027[7]. - The construction demand in Singapore is projected to increase from an estimated SGD 29.8 billion in 2022 to between SGD 27 billion and SGD 32 billion in 2023, driven by stable construction needs and pandemic-related backlogs[29]. - The construction authority anticipates that civil engineering construction demand will remain strong, supported by ongoing MRT line construction and other infrastructure projects[30]. Corporate Governance - The company is committed to achieving good corporate governance and focuses on creating long-term sustainable growth and value for all shareholders[56]. - The board of directors is responsible for setting the overall strategic direction and overseeing financial and administrative functions, including business planning and project management[57]. - The board held regular meetings throughout the year to monitor business development and financial performance, ensuring compliance with corporate governance codes[58]. - The company has adopted all provisions of the corporate governance code as its own governance practices, with some exceptions noted[56]. - The board includes three executive directors and three independent non-executive directors, ensuring a balance of perspectives and independent judgment[61]. - Independent non-executive directors have confirmed their independence in accordance with listing rules, ensuring compliance with relevant standards[62]. - The company has a mechanism in place to seek independent professional advice when necessary, with costs borne by the company[57]. - The company’s governance framework helps to better understand, assess, and manage risks and opportunities[56]. - The board has reviewed the compliance of the corporate governance code and the effectiveness of the group’s risk management and internal control systems[58]. - The independent non-executive directors' appointments are set to last until November 2023, subject to re-election at the annual general meeting[63]. - The company has adopted the corporate governance code, ensuring the separation of roles between the Chairman and the CEO, with the current CEO also serving as Chairman[65]. - The company has established a remuneration committee to review and approve the remuneration policies for all directors and senior management, ensuring transparency in the process[70]. - The nomination committee has been set up to review the board's structure and recommend suitable candidates for directorship, ensuring compliance with independence criteria[72]. - The company has implemented appropriate insurance arrangements for directors' legal liabilities starting from January 1, 2023, to mitigate risks associated with lawsuits[65]. - Continuous professional development activities have been recorded for all directors, focusing on regulatory updates and director responsibilities[66][67]. - The remuneration committee has reviewed the remuneration policies and approved the compensation for executive directors and senior management during the year[70]. - The company’s independent non-executive directors have participated in training covering topics such as accounting standards and sustainability[67]. - The nomination committee has assessed the independence of independent non-executive directors and provided recommendations for their reappointment[74]. - The company’s board structure and composition have been reviewed, with recommendations made for the re-election of directors at the annual general meeting[75]. - The company ensures compliance with the securities trading code, confirming that all directors adhered to the established standards throughout the year[69]. - The audit committee consists of three independent non-executive directors, with a focus on reviewing risk management and internal control systems, as well as financial reporting[77]. - The annual audit fees paid to the auditors were approximately SGD 160,500, with non-audit services costing around SGD 12,600[79]. Environmental Impact - The total greenhouse gas emissions for the year ended December 31, 2022, amounted to 9,070.02 tons of CO2 equivalent, an increase from 4,805.97 tons in 2021, representing an increase of approximately 88.8%[179]. - Direct greenhouse gas emissions from gasoline and diesel consumption were 8,810.52 tons of CO2 equivalent in 2022, up from 4,768.69 tons in 2021, indicating an increase of about 84.9%[179]. - The nitrogen oxides (NOx) emissions were 2.80 tons in 2022, compared to 2.41 tons in 2021, reflecting an increase of approximately 16.2%[173]. - The sulfur oxides (SOx) emissions increased to 0.0543 tons in 2022 from 0.0294 tons in 2021, marking an increase of about 84.5%[173]. - The particulate matter (PM) emissions rose to 0.22 tons in 2022, up from 0.18 tons in 2021, which is an increase of approximately 22.2%[173]. - The company has implemented measures to reduce diesel consumption and greenhouse gas emissions, including the use of EU Stage VI compliant vehicles and route optimization[176]. - The density of total greenhouse gas emissions per employee was 17.51 tons of CO2 equivalent in 2022, compared to 11.66 tons in 2021, indicating an increase of approximately 50.5%[179]. - The company has established an integrated management system that includes ISO 9001, OHSAS 18001, and ISO 14001 to regulate operations related to environmental, social, and governance aspects[169]. - The company aims to enhance employee awareness of energy conservation and environmental protection through various initiatives[178]. - The total water consumption for the year ended December 31, 2022, was 23,069 cubic meters, an increase from 22,658.60 cubic meters in 2021[197]. - The density of water consumption per employee decreased to 44.53 cubic meters in 2022 from 55.00 cubic meters in 2021[197]. - Diesel energy consumption increased significantly to 36,075,414 kWh in 2022 from 19,525,799.11 kWh in 2021, with a density of 69,643.66 kWh per employee[194]. - Electricity consumption rose to 324,370.91 kWh in 2022 from 46,597.76 kWh in 2021, with a density of 626.20 kWh per employee[194]. - The company generated 1.53 tons of office paper waste in 2022, up from 1.00 ton in 2021, with a density of 0.0029 tons per employee[187]. - The company implemented measures to enhance energy efficiency, including using solar power for machinery and replacing diesel generators with grid electricity[192]. - The company has adopted various waste reduction practices, including recycling construction materials into new products[185]. - The company has not produced significant hazardous waste for the year ended December 31, 2022, complying with local regulations for waste disposal[184]. - The company has established a noise management plan to monitor and control noise levels at construction sites to minimize disturbance to nearby residents[200]. - The company has actively promoted water-saving measures, including installing dual-flush toilets and using recycled water for cleaning purposes[196]. Shareholder Information - No dividends were recommended for the year ending December 31, 2022[41]. - The company has adopted a dividend policy that considers various factors before declaring dividends, including economic conditions and financial performance[113]. - The company has a policy for shareholders to request special meetings if they hold at least 10% of the voting shares[88]. - The company did not recommend any final dividend for the fiscal year[102]. - The company has maintained a minimum of 25% of its issued share capital held by the public as of the report date[149]. - The company has not entered into any related party transactions that require disclosure under the listing rules for the fiscal year ending December 31, 2022[143]. - The company has not established any management or administrative contracts concerning any significant part of its business during the year[142]. - The company has not made any arrangements that would allow its directors to benefit from purchasing shares or bonds of the company or any other corporation[137]. Employee and Diversity Initiatives - The gender ratio of the group’s employees as of December 31, 2022, was 92.3% male and 7.7% female, indicating a significant gender disparity[82]. - The board currently includes two female directors and four male directors, reflecting a commitment to gender diversity[80]. - The company has implemented measures to promote diversity at all employee levels, ensuring equal employment and training opportunities[82]. - The company emphasizes the importance of employee development to provide the highest standards of service in the construction industry[155].
双运控股(01706) - 2022 - 年度财报