Financial Performance - For the six months ended June 30, 2023, the company's revenue decreased by approximately 17.6% to about SGD 5.6 million, down from SGD 6.8 million in the same period last year[10]. - Gross profit fell by approximately 80.0% to about SGD 0.2 million, compared to SGD 1.0 million for the six months ended June 30, 2022[10]. - The gross profit margin decreased from approximately 14.7% to about 4.1%, primarily due to lower profit margins on ongoing projects compared to the previous year[14]. - The company recorded a net loss of SGD 1.0 million for the period, a 100.0% increase from a net loss of SGD 0.5 million in the prior year[10]. - For the six months ended June 30, 2023, the company reported total revenue of SGD 5,619,000, a decrease of 17.5% compared to SGD 6,808,000 for the same period in 2022[64]. - The gross profit for the same period was SGD 230,000, down 77.0% from SGD 1,001,000 in the previous year[64]. - The company incurred a loss before tax of SGD 1,047,000, compared to a loss of SGD 499,000 in the prior year, representing a 109.8% increase in losses[64]. - Total comprehensive loss for the period was SGD 1,191,000, an increase of 44.3% from SGD 825,000 in the previous year[64]. - The company reported a basic and diluted loss per share of SGD 0.11 for the current period, compared to SGD 0.05 in the previous year[64]. - The company reported a pre-tax loss of SGD 1,047,000 for the six months ended June 30, 2023, compared to a loss of SGD 499,000 in the same period of 2022, indicating a deterioration in performance[96]. - Basic loss per share for the six months ended June 30, 2023, was SGD (0.11), compared to SGD (0.05) for the same period in 2022, reflecting an increase in losses per share[96]. Cash Flow and Financial Position - As of June 30, 2023, the group had cash and bank balances of approximately SGD 20.1 million, down from SGD 24.0 million as of December 31, 2022[20]. - The company's cash flow from operations showed a net cash position of SGD 13,967,000 as of June 30, 2023, down from SGD 17,698,000 as of December 31, 2022[107]. - For the six months ended June 30, 2023, the cash flow from operating activities was a net outflow of SGD 2,326,000, compared to a net outflow of SGD 539,000 for the same period in 2022[68]. - The cash flow used in investing activities was SGD 1,055,000 for the six months ended June 30, 2023, compared to a net cash inflow of SGD 4,165,000 in 2022[71]. - The net cash used in financing activities was SGD 350,000 for the six months ended June 30, 2023, compared to SGD 65,000 in 2022[71]. - Cash and cash equivalents decreased to SGD 20,077,000 from SGD 24,036,000, indicating a decline of 16.5%[65]. - The company had a significant increase in contract liabilities, with a net outflow of SGD 1,282,000 compared to an inflow of SGD 1,325,000 in the previous year[68]. Projects and Market Outlook - As of June 30, 2023, the company had five ongoing projects with a total contract value of approximately SGD 55.7 million, of which about SGD 18.7 million has been recognized as revenue[8]. - The company is adopting a more cautious approach to bidding for new projects due to market volatility and rising construction costs, which have increased by 30% to 40% compared to pre-pandemic levels[6]. - The construction market in Singapore is expected to see strong demand, particularly in the public sector, while the private sector is anticipated to remain stable in the medium term[6]. - The company plans to continue investing in enhancing its workforce and adopting new construction technologies to improve productivity and maintain its competitive edge in project bidding and delivery[7]. Corporate Governance - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and risk management[58]. - The audit committee reviewed the unaudited consolidated results for the period and confirmed compliance with applicable accounting standards and regulations[60]. - The company maintains high standards of corporate governance to protect shareholder interests and enhance corporate value[55]. - No conflicts of interest were reported among directors, major shareholders, or management during the period[54]. - The company has adopted a code of conduct for directors' securities transactions, ensuring compliance with relevant regulations[57]. - The company has not identified any other individuals with disclosed interests in the company's shares outside of the mentioned directors and major shareholders[53]. Shareholder Information - As of June 30, 2023, Mr. Zheng Yonghua holds a total of 549,792,000 shares, representing approximately 60.05% of the company's issued voting shares[44]. - Mr. Zhang Ruiqing owns 529,792,000 shares, accounting for about 57.86% of the company's issued voting shares[45]. - Mr. Zheng Mingqiang holds 67,073,714 shares, which is approximately 7.33% of the company's issued voting shares[48]. - Mr. Zheng Yonghua is deemed to have an interest in 529,792,000 shares held by HMK Investment Holdings Limited due to his 90% ownership[44]. Expenses and Liabilities - Administrative expenses rose by approximately 26.1% to about SGD 2.9 million, mainly due to depreciation of right-of-use assets, professional fees, and increased employee costs[16]. - The total employee cost for the period was approximately SGD 2.8 million, compared to SGD 2.7 million for the same period last year[30]. - Employee benefits expenses totaled SGD 1,338,000 for the six months ended June 30, 2023, compared to SGD 1,260,000 for the same period in 2022, reflecting an increase of 6%[91]. - The company’s management compensation for the six months ended June 30, 2023, was SGD 511,000, a decrease from SGD 600,000 in the same period of 2022[119]. - Trade payables increased to SGD 2,054,000 as of June 30, 2023, up 15.6% from SGD 1,776,000 as of December 31, 2022[109]. - Other payables and accrued expenses totaled SGD 10,076,000 as of June 30, 2023, a decrease of 6.9% from SGD 10,831,000 as of December 31, 2022[112]. - The company’s accrued operating expenses were SGD 779,000 as of June 30, 2023, a significant decrease from SGD 1,339,000 as of December 31, 2022[112]. Other Income and Expenses - Other income increased by approximately 375.0% to about SGD 1.9 million, primarily due to increased bank interest income, rental income, and management fees from joint ventures[15]. - Interest income from bank deposits increased to SGD 343,000 in the first half of 2023, up from SGD 206,000 in the same period of 2022, marking a growth of 66%[86]. - Rental income rose to SGD 533,000 in the first half of 2023, compared to SGD 75,000 in the same period of 2022, representing a substantial increase of 611%[86]. - The company incurred financing costs of SGD 117,000 for the six months ended June 30, 2023, compared to SGD 4,000 in the same period of 2022, indicating a significant rise in financing expenses[90]. - The company reported a net loss from the sale of financial assets measured at fair value through other comprehensive income of SGD 32,000 for the first half of 2023, down from a gain of SGD 41,000 in the same period of 2022[88]. - The company reported a loss from the sale of intangible assets amounting to SGD 49,000 for the six months ended June 30, 2023[68].
守益控股(02227) - 2023 - 中期财报