Financial Performance - The financial performance for the fiscal year ending October 31, 2021, remains in a loss position, similar to the previous period [28]. - The group's revenue increased by 27.81% to approximately SGD 188.5 million from about SGD 147.5 million in the previous fiscal year [29]. - Gross profit declined to a loss of SGD 1.05 million, with a gross margin of -0.56%, down from a profit of approximately SGD 402,000 and a margin of 0.27% in the previous year [29]. - Other income decreased by approximately SGD 3 million due to reduced government subsidies as the economy gradually recovered [30]. - The company recorded a net loss of approximately SGD 5.0 million after tax, a decrease of SGD 341,000 or about 7.4% compared to the previous period [33]. - The company incurred a financial asset impairment loss of SGD 3.00 million for trade receivables, significantly higher than SGD 0.55 million in the prior year [181]. - The net loss for the year was SGD 4.96 million, slightly higher than the loss of SGD 4.62 million in the previous year [181]. - For the fiscal year ending October 31, 2021, the company reported a pre-tax loss of SGD 5,983,000, compared to a loss of SGD 5,332,000 in the previous year, indicating an increase in losses of approximately 12.3% [191]. Market Outlook - The company anticipates a V-shaped recovery in 2022, driven by a resilient economy and government policies in Singapore [9]. - The construction demand in Singapore is expected to steadily rise in the medium term, with public sector contributions projected to be between SGD 14 billion and SGD 18 billion annually from 2022 to 2025 [47]. - Private sector construction demand is anticipated to reach between SGD 11 billion and SGD 14 billion annually during the same period, contingent on successful COVID-19 treatment and vaccine deployment [47]. - The ongoing uncertainty in the market has led to irrational bidding strategies among some construction firms, exacerbating risks [7]. - The company is committed to strengthening its position in the fiscal year 2022 to reverse the poor performance of the fiscal year 2021 [48]. Operational Challenges - The construction industry faced significant challenges due to the pandemic, leading to increased labor and material costs, impacting project risks [7]. - The construction industry is expected to face a potential cost increase of 10% to 15% due to labor shortages and rising material costs [25]. - Due to COVID-19, the project completion date has been delayed to May 2022, with an expected increase in final construction costs [149]. - The Singapore government granted a general extension of 122 days for projects affected by COVID-19, which means DHC Construction is not expected to incur any penalty payments [150]. Corporate Governance - The company has adopted and complied with all applicable corporate governance codes as per the Hong Kong Stock Exchange [50]. - The board of directors consists of five members, with independent non-executive directors making up 60% of the board, ensuring a balanced and independent judgment [55]. - The company adopted a board diversity policy, emphasizing the importance of diverse skills, experiences, and perspectives in board appointments [62]. - The audit committee, established on April 19, 2018, consists of three independent non-executive directors, ensuring oversight of financial reporting and risk management [67]. - The company has established a governance framework to ensure effective oversight and accountability among its directors [80]. Employee and Operational Metrics - Employee costs totaled approximately SGD 27 million, up from SGD 26 million in the previous year [45]. - The group employed 861 staff members as of October 31, 2021, including foreign workers [44]. - The current ratio improved to 2.4 from 2.2 year-on-year, indicating better liquidity management [36]. - The debt-to-equity ratio decreased to 14.2% from 20.2%, primarily due to the repayment of a temporary transitional loan [37]. Shareholder Information - The company did not recommend a final dividend for the fiscal year [111]. - As of October 31, 2021, the company's distributable reserves included a share premium of SGD 69,777,000 and accumulated losses of SGD (6,153,000) [118]. - The company has maintained its capital development and operational balance while considering dividend payments [102]. Project and Contract Information - The company reported a project contract value exceeding SGD 300 million, indicating a strong pipeline for future growth [9]. - HPC secured contracts totaling SGD 151.46 million in 2021, a decrease of SGD 40 million compared to SGD 356 million in the same period of 2020 [25]. - The total contract amount for the project awarded to DHC Construction is SGD 6,806,725 [147]. - DHC Construction will be responsible for rebuilding the property into a seven-story industrial building [148]. Financial Position - Total revenue for the fiscal year ended October 31, 2021, was SGD 188.51 million, an increase of 27.8% from SGD 147.49 million in the previous year [181]. - Total assets decreased to SGD 148.96 million from SGD 172.08 million, a decline of 13.4% [183]. - The company's equity attributable to owners decreased to SGD 84.72 million from SGD 89.40 million, a decrease of 5.9% [186]. - The company has not adopted any new accounting standards that would have a significant impact on its financial performance or position for the current fiscal year [197].
HPC HOLDINGS(01742) - 2021 - 年度财报