Financial Performance - The company reported a net loss of 15,000 SGD for the six months ended June 30, 2023, compared to a profit of 1,799,000 SGD in the same period of 2022[14]. - Revenue for the six months ended June 30, 2023, was SGD 8,539,000, a decrease of 25.6% compared to SGD 11,500,000 for the same period in 2022[31]. - Gross profit for the same period was SGD 3,826,000, down 25.2% from SGD 5,115,000 year-over-year[31]. - Operating profit significantly decreased to SGD 480,000, a decline of 82.1% from SGD 2,676,000 in the previous year[31]. - The company reported a comprehensive loss of 111,000 SGD for the period, compared to a comprehensive income of 1,733,000 SGD in the prior year[14]. - The company reported a net loss attributable to owners of SGD 15,000, compared to a profit of SGD 1,799,000 in the prior year[31]. - Basic and diluted loss per share was SGD (0.0015), compared to earnings per share of SGD 0.1799 in the same period last year[31]. - The company reported a net profit before tax of 486 thousand SGD for the six months ended June 30, 2023[66]. - The company’s income tax expense for the six months ended June 30, 2023, was 501 thousand SGD, down from 859 thousand SGD in the same period of 2022[77]. - The group recorded a loss attributable to the company's owners of approximately SGD 0.02 million, compared to a profit of approximately SGD 1.80 million for the six months ended June 30, 2022, indicating a significant decline in performance[169]. Assets and Liabilities - Total assets increased to 58,899,000 SGD as of June 30, 2023, up from 43,855,000 SGD as of December 31, 2022, representing a growth of approximately 34%[16]. - Total liabilities increased to 20,257,000 SGD as of June 30, 2023, compared to 9,333,000 SGD at the end of 2022, reflecting a significant rise of approximately 117%[16]. - The equity attributable to owners of the company was 38,642,000 SGD, up from 34,522,000 SGD, showing an increase of about 12%[16]. - The company's total liabilities decreased from 6,019 thousand SGD as of December 31, 2022, to 3,482 thousand SGD as of June 30, 2023[84]. - The group's total liabilities to equity ratio was approximately 37.9% as of June 30, 2023, compared to about 3.0% as of December 31, 2022[147]. - The group's net current assets as of June 30, 2023, were approximately SGD 41.70 million, an increase from approximately SGD 23.78 million as of December 31, 2022[172]. - The group's cash and cash equivalents, short-term bank deposits, and pledged bank deposits totaled approximately SGD 41.14 million as of June 30, 2023, compared to approximately SGD 23.53 million as of December 31, 2022[172]. - The group's borrowings and lease liabilities were approximately SGD 13.70 million and SGD 0.93 million, respectively, as of June 30, 2023, compared to approximately SGD 0.36 million and SGD 0.67 million as of December 31, 2022[172]. Cash Flow and Expenses - Cash and cash equivalents rose to 19,138,000 SGD, compared to 12,577,000 SGD at the beginning of the year, marking an increase of 52%[21]. - The company generated a net cash inflow from operating activities of 1,007,000 SGD, down from 1,574,000 SGD in the previous year, indicating a decline of about 36%[21]. - Employee benefits expenses, including directors' remuneration, were 2,470 thousand SGD for the six months ended June 30, 2023, compared to 2,896 thousand SGD in the same period of 2022, a decrease of about 14.7%[94]. - The income tax expense decreased by approximately SGD 0.36 million or 41.7% to approximately SGD 0.50 million for the six months ended June 30, 2023, primarily due to reduced profits from the manufacturing business in Singapore[168]. Segment Performance - The manufacturing segment recorded total revenue of approximately 8.54 million SGD for the six months ended June 30, 2023, a decrease of about 2.93 million SGD or 25.6% compared to approximately 11.47 million SGD for the same period in 2022, mainly due to a slowdown in the economy leading to reduced sales orders[137]. - The segment performance for the manufacturing business showed a profit of 3,442 thousand SGD, while the online business reported a loss of 2,193 thousand SGD, resulting in a total segment profit of 1,249 thousand SGD[66]. - The online business segment generated approximately 3,000 SGD in revenue for the six months ended June 30, 2023, compared to approximately 30,000 SGD in the same period of 2022[115]. - For the six months ended June 30, 2023, reported segment revenue from the manufacturing business was 8,536 thousand SGD, while online business revenue was 3 thousand SGD, totaling 8,539 thousand SGD[66]. Strategic Focus and Future Plans - The company is focused on expanding its precision engineering and online mobile gaming development sectors, aiming for growth in these areas[23]. - The company plans to continue focusing on mobile game development, with research and development expenses increasing to SGD 1,342,000 from SGD 846,000[31]. - The company plans to continue developing and optimizing its mobile game products in the second half of 2023 to diversify revenue sources[118]. - The group aims to maintain close relationships with existing and potential customers in the manufacturing sector and is focused on upgrading machinery and utilizing robotics to enhance production efficiency and capacity[140]. - The board will continue to focus on developing core manufacturing operations to enhance production capacity and efficiency while exploring other business opportunities to diversify revenue sources[165]. Shareholder and Governance - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2023, consistent with the previous year[99]. - The group did not recommend an interim dividend for the six months ended June 30, 2023, compared to no dividend for the same period in 2022[143]. - The audit committee reviewed the unaudited interim results for the six months ended June 30, 2023, and found no discrepancies in the accounting principles and practices adopted by the company[185]. - All directors confirmed full compliance with the listing rules and standard code of conduct for securities transactions as of June 30, 2023[186]. - As of June 30, 2023, the company has a major shareholder, Maodong, holding 602,340,000 shares, which represents approximately 60.23% of the issued share capital[183]. Compliance and Accounting - The company has not reported any significant impact from the adoption of new accounting standards effective from January 1, 2023[25]. - The company did not purchase, sell, or redeem any of its listed securities during the six months ended June 30, 2023[184]. - The company plans to continuously review the use of net proceeds based on market conditions, with the remaining proceeds expected to be utilized in the future[188].
FSM HOLDINGS(01721) - 2023 - 中期财报