Financial Performance - The group's revenue increased by 23.9% to approximately SGD 79.6 million for the year ended December 31, 2021, compared to approximately SGD 64.2 million for the year ended December 31, 2020[9]. - The gross loss and net loss decreased by 347.3% and 93.0% to a gross profit of approximately SGD 6.4 million and a net loss of SGD 1.1 million, respectively, for the year ended December 31, 2021[9]. - The company's revenue for the year ended December 31, 2021, was approximately SGD 79.6 million, an increase of about SGD 15.4 million or approximately 23.9% from SGD 64.2 million in 2020[15]. - Gross profit for the year ended December 31, 2021, was approximately SGD 6.4 million, a significant improvement from a gross loss of approximately SGD 2.6 million in 2020, representing a change of about 347.3%[17]. - The gross profit margin for 2021 was 8.0%, compared to a negative gross margin of 4.0% in 2020, reflecting improved operational efficiency[17]. - The company's net loss attributable to owners decreased from approximately SGD 15.9 million in 2020 to approximately SGD 1.1 million in 2021, a reduction of about SGD 14.8 million[23]. - Total administrative expenses for the year ended December 31, 2021, were approximately SGD 8.6 million, down from SGD 11.0 million in 2020, primarily due to the absence of listing expenses[20]. - Other income for the year ended December 31, 2021, was approximately SGD 1.5 million, a decrease from SGD 2.3 million in 2020, mainly due to the absence of government subsidies[19]. Project and Market Outlook - The group has 16 projects on hand with a theoretical contract value of approximately SGD 62.5 million, of which approximately SGD 26.8 million has been recognized as revenue by December 31, 2021[11]. - The construction demand in Singapore is estimated to be between SGD 27 billion and SGD 32 billion in 2022, with public sector projects accounting for about 60% of total demand[10]. - The group anticipates business recovery starting from 2022 to 2023, despite project delays due to market uncertainties and disruptions[10]. - The group aims to mitigate the adverse effects of COVID-19 by maintaining close communication with subcontractors and suppliers[6]. - The group continues to monitor the global COVID-19 situation, which remains uncertain and challenging for the construction industry in the short term[10]. Financial Position and Stability - As of December 31, 2021, the company had cash and bank balances totaling approximately SGD 10.7 million, down from SGD 17.1 million as of December 31, 2020[25]. - The company's debt-to-equity ratio as of December 31, 2021, was 101.5%, compared to 110.8% in 2020, indicating improved financial stability[30]. - The company plans to enhance its capital base with a reallocation of SGD 3.0 million to meet project funding needs due to the ongoing impact of COVID-19[41]. - The independent auditor issued a qualified opinion on the consolidated financial statements for the fiscal year 2021, primarily due to limitations in the scope regarding prepaid expenses and fair value measurements[45]. Governance and Management - The company reported a strong performance for the year ending December 31, 2021, with a commitment to high corporate governance standards[68]. - The board of directors is composed of both executive and independent non-executive directors, ensuring a balanced governance structure[76]. - The company has established a corporate governance framework based on the principles outlined in the corporate governance code, enhancing transparency and accountability[69]. - The management team includes experienced professionals with over 28 years of financial and corporate governance experience[62]. - The financial director has over 20 years of experience in accounting and auditing, contributing to the company's financial planning and reporting[64]. - The company has implemented policies and procedures to improve governance and oversight of business operations[70]. - The board regularly reviews the contributions of its members to ensure they are fulfilling their responsibilities[75]. Employee and Compensation Policies - The group has provided competitive compensation and benefits to attract and retain high-quality employees, with regular reviews of its remuneration policies[34]. - As of December 31, 2021, the group employed 387 staff, a decrease from 418 in 2020, with total employee costs amounting to approximately SGD 14.5 million, up from SGD 11.9 million in 2020[34]. - The remuneration of directors and the five highest-paid individuals is reviewed based on company performance, market competitiveness, and individual achievements[191]. Shareholder Engagement and Dividend Policy - The company has adopted a dividend policy with a payout ratio expected to be no less than 35% of retained earnings prior to declaration, subject to financial conditions and operational needs[136]. - The company does not recommend the payment of a final dividend for the year ended December 31, 2021 (2020: zero)[198]. - The company has established multiple communication channels to engage with shareholders and ensure their rights are protected[126]. Risk Management and Internal Controls - The company has established a robust risk management and internal control system to manage operational and financial risks, ensuring the protection of shareholder interests and assets[114]. - The board is responsible for reviewing the effectiveness and adequacy of the risk management and internal control system annually, and it has deemed the system effective as of December 31, 2021[116]. - The company has implemented a whistleblowing policy to allow employees to confidentially report concerns regarding financial reporting and internal controls[115]. Share Structure and Ownership - As of December 31, 2021, the board members and senior management hold a total of 750,000,000 shares, representing 75% of the company's equity[157]. - Chua Boon Par, Chen Minghui, and Liang Weijie each hold 750,000,000 shares, accounting for 75% of the equity through controlled corporations[157]. - The company maintains compliance with the Securities and Futures Ordinance regarding the disclosure of interests[160]. Supplier and Customer Relationships - The largest supplier accounted for approximately 11.0% of total procurement, while the top five suppliers represented about 20.4% of total procurement, compared to 15.0% and 45.9% in 2020 respectively[183]. - The largest customer contributed approximately 14.0% of total revenue, and the top five customers accounted for about 47.7% of total revenue, compared to 14.1% and 49.9% in 2020 respectively[183].
RAFFLESINTERIOR(01376) - 2022 - 年度财报