Performance Recovery - The group has achieved a gradual recovery in performance, approaching pre-pandemic levels, benefiting from strong competitiveness in local industrial real estate projects[7] - The company anticipates stable growth in 2023, with a focus on expanding local market share and restarting overseas business initiatives that were paused due to the pandemic[9] - The group expresses confidence in achieving substantial progress in overseas business as it resumes efforts that were previously on hold[9] - The construction industry in Singapore grew by 2.1% in 2022, reaching SGD 35,197 million, recovering to pre-pandemic activity levels[23] - The construction demand in Singapore is expected to recover in 2023, with projected annual total construction demand between SGD 25 billion and SGD 32 billion from 2023 to 2026[42] Financial Performance - The group's revenue for the fiscal year increased by approximately 7.64%, rising from about SGD 188.5 million to approximately SGD 202.9 million[27] - The gross profit surged from a loss of approximately SGD 1.05 million in the previous year to a profit of SGD 12.1 million, with a gross margin improvement from -0.56% to 5.96%[27] - The net loss after tax was approximately SGD 424,000, a 92% improvement compared to a loss of SGD 4.9 million in the previous period[31] - Administrative expenses decreased from approximately SGD 7.47 million to SGD 6.87 million, primarily due to reduced depreciation and staff reallocation[29] - The group anticipates a tax refund of approximately SGD 2.1 million due to increased operating income and provisions for foreseeable losses[30] Project Management - New projects awarded during the year have compensated for earlier projects significantly impacted by the pandemic, reflecting careful risk assessment[7] - The group maintained a cautious approach to project bidding, focusing on selective opportunities amid ongoing challenges[24] - The company plans to actively bid for new projects in its specialized segments and streamline resources for potential large industrial projects expected to be awarded in Q1 to Q2 2023[45] - The group secured two new projects in the second half of 2022, valued at SGD 314.60 million and SGD 14.90 million, respectively[24] - The group's order book remained robust at SGD 434.43 million as of December 31, 2022[24] Governance and Compliance - The company has adopted and complied with all applicable provisions of the Corporate Governance Code, except for the separation of the roles of Chairman and CEO[59] - The board consists of five members, with independent non-executive directors making up 60% of the board, ensuring a balanced governance structure[64] - The audit committee, established on April 19, 2018, consists of three independent non-executive directors and is responsible for overseeing financial reporting and risk management[75] - The company has established compliance procedures to ensure adherence to applicable laws and regulations, particularly those significantly impacting the group[131] - The board is responsible for reviewing and approving the effectiveness and appropriateness of the company's risk management and internal control systems[98] Employee and Shareholder Relations - The company acknowledges the contributions of shareholders, directors, executives, and employees in the past year, emphasizing teamwork for future growth[9] - Total employee costs for the fiscal year amounted to approximately SGD 29 million, up from SGD 27 million in the previous year[41] - The company aims to maintain a gender ratio of approximately 3:1 (male to female) among employees, despite the construction industry's historical lack of female talent in Singapore[71] - The company has adopted a board diversity policy, focusing on skills, experience, and diverse perspectives in candidate selection[71] - The company emphasizes maintaining good relationships with employees, customers, and subcontractors, conducting regular feedback channels to improve service quality[132] Environmental and Social Responsibility - The company has adopted an environmental policy that includes compliance with ISO 9001, ISO 45001, and ISO 14001 standards[129] - HPC is committed to designing and constructing sustainable buildings, focusing on user safety and reducing environmental impacts during construction and operation[193] - The company has established an environmental, health, and safety (EHS) committee and environmental control officers (ECO) at all project sites to ensure compliance with environmental policies[194] - The company aims to integrate sustainable design into its construction projects, seeking BCA Green Mark certification[197] - The company promotes waste reduction through recycling and reusing activities[196] Risk Management - The company faces various risks and uncertainties that could impact its business and financial performance[126] - The company has a risk management policy in place to identify, assess, and manage key risks affecting the business[97] - A review of the internal control effectiveness was conducted by Virtus Assure Pte Ltd, with no significant concerns affecting financial, operational, compliance, or risk management identified[100] - The audit committee is tasked with reviewing the integrity of financial statements and ensuring the independence of external auditors[76] - The company conducts regular reviews and improvements of its anti-money laundering policies and internal controls[183]
HPC HOLDINGS(01742) - 2022 - 年度财报