Financial Performance - Revenue for the six months ended December 31, 2023, was SGD 64,653,000, an increase of 20.7% compared to SGD 53,595,000 for the same period in 2022[9] - Gross profit for the same period was SGD 3,143,000, up from SGD 2,967,000, reflecting a gross margin improvement[9] - The company reported a pre-tax profit of SGD 212,000, compared to SGD 125,000 in the previous year, representing a 69.6% increase[9] - The group reported a net profit of SGD 212,000 for the six months ended December 31, 2023, compared to SGD 125,000 for the same period in 2022, representing a 69.6% increase[15] - Total comprehensive income for the period was SGD 254,000, which includes a fair value gain of SGD 42,000[14] - The group recorded a total operating profit of SGD 212,000, compared to SGD 125,000 in the prior period, representing a significant increase of 69.6%[28] - The group recorded a profit of approximately SGD 0.2 million for the six months ended December 31, 2023, compared to a profit of approximately SGD 0.1 million for the same period in 2022[78] Assets and Equity - Total assets as of December 31, 2023, amounted to SGD 96,707,000, an increase from SGD 85,293,000 as of June 30, 2023[11] - The company's total equity rose to SGD 37,676,000 from SGD 37,422,000, showing a slight increase in shareholder value[12] - The group’s total equity as of December 31, 2023, was SGD 37,676,000, an increase from SGD 35,080,000 a year earlier[14] - Cash and cash equivalents increased significantly to SGD 38,293,000 from SGD 22,913,000, indicating improved liquidity[11] - The cash and cash equivalents at the end of the period rose to SGD 38,293,000, compared to SGD 24,781,000 at the end of December 2022, reflecting a 54.4% increase[17] Cash Flow and Financing - The group’s cash flow from operating activities increased to SGD 15,888,000, up from SGD 12,657,000 in the previous year, marking a 25.5% growth[15] - The financing activities resulted in a net cash outflow of SGD 658,000, an improvement from SGD 862,000 in the previous year[17] - The group’s financing costs decreased to SGD 56,000 from SGD 72,000, a reduction of 22.2%[39] - The debt-to-equity ratio as of December 31, 2023, was approximately 7.4%, down from approximately 9.1% as of June 30, 2023[82] Market and Operational Insights - The company is focusing on expanding its market presence and enhancing its operational efficiency through strategic initiatives[9] - The expected overall construction demand in Singapore for 2024 is projected to be between SGD 32 billion and SGD 38 billion, with public sector demand accounting for about 55%[68] - The company plans to maintain its focus on becoming a leading contractor in both public and private sector construction projects, emphasizing investment in workforce and new construction technologies[69] - The construction demand in Singapore is expected to continue growing, with annual demand projected between SGD 31 billion and SGD 38 billion from 2025 to 2028[93] Shareholder and Governance - Kwan Mei Kam and Tay Yen Hua each hold 600 million shares, representing 75% ownership in the company[103] - The company has established a non-competition agreement to prevent potential competition with its controlling shareholders[111] - All directors confirmed compliance with the trading rules for securities as of December 31, 2023, with no non-compliance incidents reported[115] - The company has fully complied with the corporate governance code during the six-month period ending December 31, 2023, except for the specific provision C.2.1[127] - The company has appointed Kwan Mei Kam as both Chairman and CEO, which the board believes aids effective management and business development[128] Stock Options and Employee Incentives - The stock option plan was adopted conditionally on December 17, 2019, aiming to reward employees, directors, and selected participants for their contributions[116] - The total number of shares that can be issued under the stock option plan, including exercised and unexercised options, shall not exceed 1% of the company's issued share capital within any 12-month period[118] - The maximum number of shares that can be issued upon the exercise of options granted under the stock option plan is capped at 80,000,000 shares, representing 10% of the total issued shares[119] - No stock options have been granted since the adoption of the stock option plan, and there are no unexercised options as of December 31, 2023[124] - The company has not been able to issue any shares under the stock option plan as of December 31, 2023, due to the absence of granted options[125]
光荣控股(09998) - 2024 - 中期财报