Financial Performance - For the six months ended April 30, 2022, the group's revenue decreased by approximately 34.78%, from about SGD 116.90 million to approximately SGD 76.24 million[8]. - The group's gross profit declined from approximately SGD 9.50 million for the six months ended April 30, 2021, to SGD 2.75 million, representing a decrease of about 71.05%[8]. - The gross profit margin fell to 3.61% for the current period, compared to 8.13% for the previous period[8]. - The group recorded a net loss of approximately SGD 1.02 million, a decrease of about 121.80% compared to a net profit of SGD 4.68 million in the previous period[13]. - The company reported unaudited revenue of SGD 76,245,000 for the six months ended April 30, 2022, a decrease of 34.8% compared to SGD 116,901,000 for the same period in 2021[46]. - Gross profit for the same period was SGD 2,749,000, down 71.1% from SGD 9,504,000 year-on-year[46]. - The company incurred a net loss attributable to owners of SGD 891,000, compared to a profit of SGD 4,742,000 in the previous year[46]. - The company reported a pre-tax loss of SGD 1,921 thousand for the six months ended April 30, 2022, compared to a profit of SGD 4,773 thousand in the same period of 2021[66]. - The company reported a profit of SGD 4,742 thousand for the six months ended April 30, 2021, while the profit for the same period in 2022 was not specified, indicating a potential decline in profitability[51]. Expenses and Costs - Administrative expenses decreased from approximately SGD 3.71 million to SGD 3.45 million, a reduction of about SGD 254,000[11]. - Total employee costs for the six months ended April 30, 2022, amounted to approximately SGD 13.9 million, slightly up from SGD 13.8 million in 2021[24]. - Other income decreased by approximately SGD 193,000 due to reduced government subsidies related to COVID-19[9]. - The company is facing challenges such as rising construction material costs and project cost overruns, impacting gross margins[30]. - The company recorded current tax expenses of SGD 37,331,000 for the six months ended April 30, 2022[6]. - Deferred tax expenses for the same period were recorded as a credit of SGD 797,000[6]. Assets and Liabilities - Total assets as of April 30, 2022, were SGD 146,509,000, a slight decrease from SGD 148,960,000 as of October 31, 2021[47]. - Trade receivables decreased to SGD 33,701,000 from SGD 45,229,000, indicating a reduction of 25.5%[47]. - Current liabilities were reported at SGD 45,577,000, down from SGD 49,445,000, reflecting a decrease of 7.1%[47]. - The company's cash and cash equivalents stood at SGD 19,998,000, down from SGD 30,799,000, a decline of 35.2%[47]. - Total liabilities decreased from SGD 64,124 thousand in 2021 to SGD 62,692 thousand in 2022, a reduction of approximately 2.2%[48]. - The company's retained earnings decreased from SGD 39,188 thousand in 2021 to SGD 38,297 thousand in 2022, a decline of about 2.3%[51]. - The total cash outflow related to leases for the six months ended April 30, 2022, was SGD 58,700,000, down from SGD 117,000,000 for the same period in 2021[111]. Cash Flow and Financing - Operating cash flow before changes in working capital was SGD 3,834 thousand in 2022, down from SGD 6,558 thousand in 2021, representing a decrease of approximately 41.5%[54]. - The net cash used in operating activities was SGD (10,137) thousand in 2022, compared to SGD (11,750) thousand in 2021, indicating an improvement of about 13.8%[55]. - The net cash inflow from financing activities was SGD 4,952,000, a substantial improvement from a net outflow of SGD 938,000 in the prior year, reflecting enhanced financing capabilities[56]. - The company reported a significant increase in deposits from SGD 1,544,000 in October 2021 to SGD 2,200,000 in April 2022, which is an increase of about 42.5%[94]. - The company reported a net cash inflow from bank borrowings of SGD 5,003,000, contrasting with a net repayment of SGD 835,000 in the previous year, highlighting a shift towards leveraging debt for growth[56]. Projects and Operations - The group maintained a healthy order book level of SGD 269 million as of April 30, 2022[4]. - The group successfully secured an additional engineering project with a contract value of SGD 27,360,429 for the LOGOS warehouse expansion and renovation[4]. - The group has five ongoing projects, with expected completions in Q4 2022 and Q1 2023 for various developments[6]. - The construction demand in Singapore is forecasted to be between SGD 27 billion and SGD 32 billion for the year, excluding any developments related to Marina Bay Sands and Sentosa Development projects[27]. - The group has implemented effective cost management and is gradually introducing low-risk loan financing to optimize capital costs[15]. Market and Economic Conditions - The group remains optimistic about financial performance improving in the next period despite ongoing challenges[7]. - The group remains cautiously optimistic about future performance as global social restrictions ease and borders reopen[30]. - Manufacturing sector growth was reported at 75% in 2021, driven by strong demand for semiconductors and continued growth in e-commerce and biomedical sectors[28]. - Rental rates for cold storage logistics warehouses have increased significantly, exceeding the growth seen in 2021 due to high demand and limited logistics space in Singapore[29]. Governance and Compliance - The company has adopted and complied with the corporate governance code, except for the separation of roles between the Chairman and CEO[36]. - The audit committee has reviewed the financial performance for the interim period, particularly the impact of COVID-19 on operations[38]. - The company has adopted all new and revised International Financial Reporting Standards (IFRS) effective from November 1, 2021, with no significant impact on the interim financial statements[60]. - The company is preparing for the adoption of new accounting standards that may affect future financial reporting, although they are not expected to have a significant impact on the financial statements for the first year of application[61]. Shareholder Information - The group has adopted a share option plan allowing for the issuance of up to 160 million shares, representing 10% of the company's shares listed on the Hong Kong Stock Exchange[32]. - As of April 30, 2022, there were no share options granted or unexercised[33]. - The company did not declare any dividends for the six months ended April 30, 2022[76].
HPC HOLDINGS(01742) - 2022 Q2 - 季度业绩