Financial Performance - For the six months ended June 30, 2022, the company's revenue increased by 4.6% to approximately SGD 6.8 million, compared to SGD 6.5 million in the same period last year[36]. - Gross profit decreased by approximately SGD 0.3 million to about SGD 1.0 million, resulting in a gross margin of 14.7%, down from 19.3% in the previous year[40]. - The company reported a net loss of SGD 0.5 million, compared to a net loss of SGD 0.3 million in the same period last year, representing a 66.7% increase in losses[40]. - The company incurred a loss before tax of SGD 499 thousand for the six months ended June 30, 2022, compared to a loss of SGD 264 thousand in the previous year, reflecting an increase in losses of approximately 89.0%[101]. - Total comprehensive loss for the period was SGD 825 thousand, compared to SGD 261 thousand in the same period last year, marking an increase of about 215.3%[101]. - The group recorded a pre-tax loss of SGD 499,000 for the six months ended June 30, 2022, compared to a loss of SGD 264,000 in 2021, reflecting a deterioration in performance[144]. - Basic loss per share for the six months ended June 30, 2022, was SGD (0.05), compared to SGD (0.03) for the same period in 2021[144]. Revenue Sources - The contribution from private sector projects was SGD 3.2 million, accounting for 47.1% of total revenue, while public sector projects contributed SGD 3.6 million, accounting for 52.9%[43]. - Major customers contributing over 10% of total revenue included Customer A with SGD 2,780,000, Customer B with SGD 1,711,000, and Customer C with SGD 1,325,000[131]. - The total transaction price allocated to remaining performance obligations as of June 30, 2022, was SGD 188,514,000, significantly up from SGD 62,202,000 in 2021, indicating a growth of approximately 202.5%[132]. Project and Contract Information - As of June 30, 2022, the company had eight ongoing projects with a total contract value of approximately SGD 201.4 million, of which SGD 12.9 million has been recognized as revenue[37]. - During the period, the company secured a new project with a total contract value of approximately SGD 139.0 million[38]. Cost and Expenses - The service costs increased by approximately 9.4% to about SGD 5.8 million, consistent with the increase in revenue[44]. - Administrative expenses increased by approximately SGD 0.3 million or 15.0% to about SGD 2.3 million, primarily due to higher employee costs compared to the same period last year[49]. - Other income decreased by approximately SGD 0.1 million or 20.0% to about SGD 0.4 million due to reduced government subsidies related to COVID-19[47]. Cash Flow and Assets - As of June 30, 2022, the group had cash and bank balances of approximately SGD 17.5 million, up from about SGD 14.0 million as of December 31, 2021[53]. - The company reported a cash flow from operating activities of SGD (499) thousand, compared to SGD (264) thousand for the same period in 2021, indicating a decline in operational cash flow[117]. - The net cash generated from investing activities was SGD 4,165 thousand, significantly higher than SGD 9 thousand in the prior year, primarily due to proceeds from the sale of property, plant, and equipment amounting to SGD 9,454 thousand[120]. - Current assets amounted to SGD 23,997 thousand as of June 30, 2022, compared to SGD 18,789 thousand at the end of 2021, representing an increase of about 27.5%[104]. - The company's total assets were valued at SGD 56,636 thousand as of June 30, 2022, slightly up from SGD 56,499 thousand at the end of 2021[104]. Shareholder Information - As of June 30, 2022, major shareholders include HMK holding 529,792,000 shares, representing approximately 57.86% of the company's issued voting shares[82]. - Zheng Yonghua holds 90% of HMK, thus is deemed to have an interest in the 529,792,000 shares held by HMK[85]. - The company did not repurchase any shares during the reporting period[76]. Corporate Governance - The board of directors and management are committed to maintaining high standards of corporate governance to protect shareholder interests[90]. - The company has adopted a code of conduct for securities trading that is not less stringent than the listing rules[92]. - The company has complied with all applicable principles and provisions of the corporate governance code during the reporting period[91]. Challenges and Market Conditions - The ongoing challenges include supply chain disruptions, labor and material shortages, which are expected to impact bidding prices and profit margins[35]. - The company adopted a more cautious approach to bidding for new projects due to market volatility and cost pressures[36]. Employee Costs - Employee costs totaled approximately SGD 2.7 million for the period, consistent with the same period last year[63]. - Total compensation for key management personnel in 2022 was SGD 600,000, a slight increase from SGD 597,000 in 2021, reflecting a growth of approximately 0.5%[176]. - Salary, allowances, and benefits for key management personnel amounted to SGD 579,000 in 2022, compared to SGD 577,000 in 2021, indicating a marginal increase of about 0.3%[176].
守益控股(02227) - 2022 - 中期财报