Financial Performance - The group reported a revenue growth of 7.6% in 2021, rebounding from a contraction of 4.1% in 2020, with the construction sector growing by 20.1% compared to a 38.4% decline in 2020[35]. - The group's revenue for the year ended December 31, 2021, increased by approximately SGD 7.2 million, or 102.8%, to approximately SGD 14.6 million compared to the previous fiscal year[36]. - Gross profit rose from a gross loss of approximately SGD 34,000 for the year ended December 31, 2020, to a gross profit of approximately SGD 3.0 million for the year ended December 31, 2021[47]. - The gross profit margin improved to approximately 20.7% for the year ended December 31, 2021, compared to a gross loss margin of approximately 0.5% for the previous year[47]. - The net loss for the year ended December 31, 2021, increased by approximately 29.0% to approximately SGD 4.0 million from approximately SGD 3.1 million for the year ended December 31, 2020[51]. - Other income decreased from approximately SGD 1.9 million for the year ended December 31, 2020, to approximately SGD 0.9 million for the year ended December 31, 2021[48]. - The distributable reserves for the company as of December 31, 2021, were approximately SGD 23,270,000, a decrease from SGD 29,344,000 in 2020[118]. Operational Challenges - Labor shortages due to cross-border restrictions have led to increased labor costs, impacting overall productivity and operational costs[34]. - The construction industry in Singapore is expected to remain below pre-pandemic levels throughout 2022, indicating ongoing challenges in the market[35]. - New project bidding prices remain competitive, but profit margins are expected to decline significantly due to rising construction costs and labor shortages[35]. - The implementation of COVID-19 safety measures has led to decreased productivity and increased costs across the industry[34]. - The group is preparing for another challenging year in 2022, anticipating impacts from rising operational costs and labor shortages[29]. Strategic Initiatives - The group is focusing on enhancing its digital capabilities to drive productivity growth, particularly in response to labor shortages in the construction industry[35]. - The company is leveraging various government grants to enhance its digital delivery initiatives[35]. - The group is actively seeking construction projects and investment opportunities while monitoring market conditions closely[30]. - The company is investing $10 million in research and development to advance its technology capabilities[88]. - A new partnership with a leading logistics provider is expected to streamline operations and improve delivery times[88]. Shareholder and Governance - The company focuses on maximizing returns for shareholders while considering business development needs and financial stability before declaring dividends[116]. - The board has resolved not to recommend any final dividend for the current year, consistent with the previous year[119]. - The company has established a compensation committee to determine the remuneration policy based on operational performance and market practices[153]. - The company’s board of directors is required to obtain shareholder approval for their remuneration at the annual general meeting[154]. - The board consists of six members, including two executive directors and three independent non-executive directors[191]. Market Position and Customer Base - Revenue from the group's top five customers accounted for approximately 88.0% of total revenue in the current year, down from 98.0% in the previous year[112]. - The largest customer represented about 48.8% of total revenue, an increase from 35.7% in 2020[178]. - The company aims to consolidate and expand its market share in the electromechanical industry in Singapore[143]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years[88]. Risk Management - The company faces risks related to the non-recurring nature of its projects, which may impact financial performance if new contracts are not secured[142]. - The company has implemented policies to mitigate credit risk, including credit limit assessments and monitoring procedures for overdue receivables[146]. - The company may experience cash flow issues due to potential delays in trade receivables and retention payments from clients[146]. - The company heavily relies on foreign workers, with a significant impact on operations and financial performance due to shortages and increased costs associated with local labor[147]. Human Resources - The total employee cost for the year ended December 31, 2021, was approximately SGD 5.6 million, slightly up from SGD 5.5 million in 2020, with a total of 142 employees compared to 129 in 2020[72]. - The company regularly assesses the availability of human resources to meet operational and expansion needs[147]. - The company has maintained strong relationships with suppliers and subcontractors, ensuring support in material pricing and delivery[113]. Compliance and Audit - The financial statements for the year were audited by Baker Tilly TFW LLP, who will be eligible for reappointment at the upcoming annual general meeting[185]. - Independent non-executive directors have confirmed compliance with independence guidelines as per listing rules[135]. - The company has maintained compliance with listing rules regarding the appointment of at least three independent non-executive directors throughout the year[195].
守益控股(02227) - 2021 - 年度财报