Financial Performance - Revenue for the six months ended June 30, 2022, was SGD 11,500,000, an increase of 83.5% compared to SGD 6,286,000 for the same period in 2021[9] - Gross profit for the same period was SGD 5,115,000, significantly up from SGD 1,001,000 in 2021, reflecting a gross margin improvement[9] - Operating profit for the six months was SGD 2,676,000, compared to an operating loss of SGD 1,902,000 in the previous year[9] - Net profit attributable to owners for the period was SGD 1,799,000, a turnaround from a loss of SGD 2,318,000 in 2021[9] - Basic and diluted earnings per share for the period was SGD 0.18, compared to a loss per share of SGD 0.23 in the previous year[9] Assets and Liabilities - Total assets as of June 30, 2022, were SGD 42,480,000, an increase from SGD 40,196,000 as of December 31, 2021[13] - Total equity attributable to owners increased to SGD 34,413,000 from SGD 32,680,000 at the end of 2021[13] - The total liabilities increased to 8,067 thousand SGD as of June 30, 2022, compared to 7,516 thousand SGD as of December 31, 2021, marking an increase of about 7.3%[45] - Non-current assets totaled 12,561 thousand SGD as of June 30, 2022, down from 13,702 thousand SGD as of December 31, 2021, representing a decrease of approximately 8.3%[42] Cash Flow and Liquidity - The company reported a cash and cash equivalents balance of SGD 8,306,000 as of June 30, 2022, compared to SGD 13,932,000 at the end of 2021[13] - For the six months ended June 30, 2022, cash flow from operating activities was SGD 1,913,000, compared to a cash outflow of SGD 1,178,000 in the same period of 2021, representing a significant improvement[19] - The net cash generated from operating activities for the same period was SGD 1,574,000, a turnaround from a net cash outflow of SGD 850,000 in 2021[19] - Total cash and cash equivalents decreased by SGD 5,689,000, down from SGD 12,534,000 in the previous year, indicating a liquidity challenge[19] - The total cash and cash equivalents as of June 30, 2022, stood at SGD 8,306,000, down from SGD 12,534,000 a year earlier, reflecting a decrease in liquidity[19] Segment Performance - Revenue from external customers for the manufacturing segment was SGD 11,468,000, while the online segment generated SGD 32,000, totaling SGD 11,500,000[34] - The reported segment performance showed a loss of SGD 1,608,000 for the online business, leading to a total segment loss of SGD 1,928,000 before tax[35] - Manufacturing business revenue increased to 38,083 thousand SGD for the six months ended June 30, 2022, compared to 33,191 thousand SGD for the same period in 2021, representing a growth of approximately 14.3%[42] - The manufacturing segment generated total revenue of approximately SGD 11.47 million for the six months ended June 30, 2022, an increase of about SGD 5.28 million or 85.42% from SGD 6.19 million in the same period of 2021[79] - The online business segment, specifically mobile gaming, reported revenue of approximately SGD 0.03 million for the six months ended June 30, 2022, down from SGD 0.10 million in the previous year[80] Research and Development - The company plans to continue investing in mobile game development, with research and development expenses amounting to SGD 846,000 for the period[9] - The company continues to enhance research and development efforts to optimize existing and new mobile games since launching its first mobile game in December 2020[80] - Research and development expenses related to mobile game development increased by approximately 0.12 million SGD to about 0.85 million SGD for the six months ended June 30, 2022[89] Corporate Governance and Compliance - The company has complied with the corporate governance code provisions as of June 30, 2022[121] - All directors confirmed full compliance with the standard code of conduct regarding securities transactions for the six months ending June 30, 2022[125] - The audit committee reviewed the unaudited condensed consolidated interim results for the six months ending June 30, 2022, and found no discrepancies with the management's accounting principles and practices[124] Employee and Operational Metrics - As of June 30, 2022, the company employed 171 full-time employees, a decrease from 184 employees as of December 31, 2021[111] - The total employee costs for the six months ended June 30, 2022, were approximately SGD 3.70 million, compared to approximately SGD 2.94 million for the same period in 2021[111] Foreign Exchange and Risks - The company experienced a foreign exchange loss of SGD 66,000 during the period, impacting overall comprehensive income[11] - The company faces foreign exchange risks primarily related to USD, RMB, and HKD, but exchange rate fluctuations did not have a significant impact during the period[109] Dividend and Shareholder Information - The company did not recommend an interim dividend for the six months ended June 30, 2022, consistent with the previous year[65] - The board has decided not to declare any interim dividend for the six months ended June 30, 2022, consistent with the previous year[110] - As of June 30, 2022, Mr. Li Thet holds a controlled interest in 602,340,000 shares, representing approximately 60.23% of the issued share capital[114] - As of June 30, 2022, the major shareholder, Maodong, holds 602,340,000 shares, representing approximately 60.23% of the issued share capital[117] Investment and Capital Expenditures - The company incurred a net cash outflow of SGD 6,781,000 from investing activities, compared to a cash inflow of SGD 3,238,000 in the previous year, indicating increased investment or capital expenditures[19] - Capital expenditure commitments for the purchase of property, plant, and equipment amounted to SGD 498,000 as of June 30, 2022, compared to SGD 120,000 as of December 31, 2021[74] Other Income and Expenses - Other income, including government grants and waste sales, totaled 122 thousand SGD for the six months ended June 30, 2022, compared to 77 thousand SGD in the same period of 2021, reflecting an increase of approximately 58.4%[52] - The company reported a total of SGD 105,000 in corporate income against corporate expenses of SGD 543,000, leading to a net corporate loss[34] - Administrative expenses decreased by approximately 0.22 million SGD or 9.44% to about 2.09 million SGD for the six months ended June 30, 2022[88]
FSM HOLDINGS(01721) - 2022 - 中期财报