Financial Performance - Total revenue decreased from approximately SGD 87.1 million to about SGD 41.5 million, a decline of approximately 52.5% for the fiscal year ending September 30, 2020[15]. - The group reported a gross loss of approximately SGD 2.0 million compared to a gross profit of about SGD 13.4 million for the previous fiscal year, representing a significant downturn[15]. - Net loss for the fiscal year was approximately SGD 7.1 million, a stark contrast to a net profit of about SGD 1.4 million in the prior year, indicating a shift of over 600% in performance[15]. - The decline in performance was primarily attributed to the adverse impacts of COVID-19 and the subsequent government-imposed lockdown measures in Singapore[16]. - The anticipated recovery of business operations and financial performance is expected to be slow due to the ongoing adverse effects of COVID-19 on the construction industry in Singapore[17]. - The company's total revenue decreased by approximately 45.6 million SGD or 52.4% from about 87.1 million SGD (restated) for the year ended September 30, 2019, to about 41.5 million SGD for the year ended September 30, 2020[26]. - Revenue from civil engineering and building construction services decreased by approximately 38.3 million SGD and 6.4 million SGD, respectively, contributing to the overall revenue decline[26]. - The company's gross profit margin fell significantly from approximately 15.4% (restated) to a gross loss margin of about 4.9% for the year ended September 30, 2020[32]. - The group reported a significant loss of approximately SGD 7.1 million for the year ended September 30, 2020, compared to a profit of approximately SGD 1.4 million (restated) for the year ended September 30, 2019, mainly due to a decrease in gross profit of approximately SGD 15.4 million[41]. Operational Challenges - The construction projects awarded to the group during the fiscal year were fewer than those awarded in the previous year, contributing to the revenue decline[16]. - The company faced significant challenges due to COVID-19, which led to project suspensions and a slower recovery in operations[27]. - The company’s service costs decreased by approximately 30.1 million SGD or 40.8% to about 43.6 million SGD for the year ended September 30, 2020[28]. - The group plans to closely monitor the overall economic environment and collaborate with clients and government authorities to mitigate potential risks[17]. Government Support and Income - Other income increased to approximately 2.6 million SGD for the year ended September 30, 2020, compared to about 0.2 million SGD in 2019, primarily due to government subsidies related to COVID-19[33]. Financial Position and Borrowings - As of September 30, 2020, the group's cash and cash equivalents amounted to approximately SGD 10.1 million, down from approximately SGD 20.9 million as of September 30, 2019[45]. - The group's total borrowings, including bank overdrafts and loans, amounted to approximately SGD 28.9 million as of September 30, 2020, compared to approximately SGD 26.2 million as of September 30, 2019[45]. - The debt-to-equity ratio as of September 30, 2020, was approximately 69.1%, an increase from approximately 53.8% as of September 30, 2019[46]. - The group’s financing costs increased from approximately SGD 1.0 million for the year ended September 30, 2019, to approximately SGD 1.3 million for the year ended September 30, 2020, primarily due to an increase in bank borrowings[37]. Corporate Governance - The company has adopted all provisions of the Corporate Governance Code as its own corporate governance practices[79]. - The board consists of two executive directors and three independent non-executive directors, ensuring compliance with the relevant guidelines[82]. - The company has complied with the Corporate Governance Code during the year ending September 30, 2020[80]. - The independent non-executive directors confirmed their independence in accordance with the listing rules[84]. - The company is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[79]. - The company has established a robust internal control system and risk management framework to protect shareholder interests and ensure compliance with relevant regulations[112]. Shareholder Matters - The group did not recommend a final dividend for the year ended September 30, 2020, consistent with the previous year[42]. - The company has adopted a dividend policy to maintain sufficient cash reserves for operational needs, future growth, and shareholder value[137]. - The company has approximately SGD 13,168,000 in distributable reserves as of September 30, 2020, down from SGD 14,155,000 as of September 30, 2019[136]. Audit and Compliance - The audit committee reviewed the group's financial statements for the year ending September 30, 2020, and approved all disclosures related to the audit committee in the report[105]. - The company paid S$240,000 for audit services during the year, with no payments for non-audit services[108]. - The company has engaged external consultants to perform internal audit functions and has reviewed the effectiveness of its risk management and internal control systems[117]. Future Plans and Investments - The company plans to enhance its fleet with an investment of HKD 31.0 million, of which HKD 10.1 million has been utilized, leaving HKD 20.9 million for future use by 2022[64]. - The company has delayed the utilization of the remaining net proceeds primarily due to the uncertainties caused by the COVID-19 pandemic[65]. - The remaining unutilized net proceeds are expected to be utilized by the fiscal year ending September 30, 2022, depending on the COVID-19 situation and its impact on the Singapore economy[65].
S&T HLDGS(03928) - 2021 - 年度财报