Financial Performance - Revenue increased by approximately 37.2% from about SGD 13.7 million in 2022 to approximately SGD 18.8 million in 2023[3] - Gross profit rose by approximately 47.6% from about SGD 2.1 million in 2022 to approximately SGD 3.1 million in 2023[4] - Loss for the year decreased by approximately 99.2% from about SGD 0.9 million in 2022 to approximately SGD 7,000 in 2023[5] - Total comprehensive income for the year amounted to SGD 869,000 compared to a loss of SGD 554,000 in 2022[10] - Revenue from construction contracts for the fiscal year 2023 was SGD 18,809,000, an increase of 37.5% from SGD 13,693,000 in 2022[23] - Total other income for 2023 was SGD 4,449,000, a 60.4% increase compared to SGD 2,773,000 in 2022[27] - The group reported a pre-tax loss of SGD 22,000 for 2023, a significant improvement compared to a pre-tax loss of SGD 911,000 in 2022[34] - The company reported a pre-tax loss of SGD 6,000 in 2023, a significant improvement from a loss of SGD 911,000 in 2022, resulting in a basic loss per share of SGD 0.00 compared to SGD 0.10 in the previous year[39] - The company reported a loss of approximately SGD 7,000 for the fiscal year ending December 31, 2023, a significant decrease of about 99.2% from a loss of approximately SGD 0.9 million in the previous year[73] Assets and Liabilities - Non-current assets increased from SGD 38.8 million in 2022 to SGD 49.7 million in 2023[12] - Current assets decreased from SGD 30.7 million in 2022 to SGD 20.4 million in 2023[12] - Total liabilities decreased from SGD 21.1 million in 2022 to SGD 20.9 million in 2023[14] - Net assets increased from SGD 48.3 million in 2022 to SGD 49.2 million in 2023[14] - Trade receivables from third parties increased to SGD 944,000 in 2023, up from SGD 562,000 in 2022, with the aging analysis showing a notable rise in receivables over 90 days to SGD 112,000 from SGD 24,000[41] - Trade payables surged to SGD 4,166,000 in 2023, compared to SGD 1,776,000 in 2022, indicating a significant increase in outstanding amounts owed to suppliers and subcontractors[50] - The company’s total other payables decreased slightly to SGD 8,464,000 in 2023 from SGD 10,366,000 in 2022, primarily due to currency exchange differences[50] - The company’s debt stood at approximately SGD 5.7 million, a decrease from SGD 6.1 million in the previous year, with a current ratio of approximately 1.3 times[75] Operational Highlights - The company continues to focus on the design, construction, and installation of electromechanical systems[17] - Major customer A contributed SGD 12,728,000 to total revenue in 2023, up from SGD 4,891,000 in 2022, representing a significant increase of 160.5%[23] - As of December 31, 2023, the company has five ongoing projects (excluding joint venture projects) with a total contract value of approximately SGD 56.8 million, of which about SGD 31.9 million has been recognized as revenue[62] - The company plans to adopt new construction technologies to enhance productivity and maintain a competitive edge in bidding for new projects[59] - The company is taking a more cautious approach to bidding for new projects due to intense price competition in the market[59] - The group operates primarily in Singapore, with all revenue generated from this region[26] Expenses and Costs - Service costs rose from approximately SGD 11.6 million to approximately SGD 15.8 million, an increase of about 36.2%, driven by increased construction activities[66] - Administrative expenses increased from approximately SGD 5.2 million to approximately SGD 6.9 million, a rise of about 32.7%, mainly due to higher depreciation and professional fees[69] - The company's financing costs increased from approximately SGD 0.1 million to approximately SGD 0.3 million, a rise of 200%, attributed to interest expenses on bank loans for leased properties[70] - The company incurred contractor costs of SGD 2,814,000 in 2023, a substantial increase from SGD 819,000 in 2022, indicating higher operational costs[36] - Depreciation of property, plant, and equipment rose sharply to SGD 1,026,000 in 2023 from SGD 487,000 in 2022, reflecting increased capital expenditures[36] Legal and Compliance - The company has ongoing legal disputes related to its investment in D. D. Resident Co., Ltd., with claims totaling SGD 2.55 million[56] - Ongoing legal proceedings related to the seller and the investee are not expected to have a significant adverse impact on the group's overall business or operations[106] - The audit report expressed a qualified opinion due to insufficient audit evidence regarding the classification of the 49% investment[104] - The audit committee shares the same view as the auditors regarding the qualified opinion and will maintain communication with the board[108] - The removal of the qualified opinion is contingent upon resolving existing issues with the investee's seller[109] Future Outlook - The construction market in Singapore is expected to face higher construction costs, with material and labor costs rising by 30% to 40% compared to pre-pandemic levels[58] - The Ministry of Trade and Industry of Singapore announced a GDP growth of 1.1% for 2023, with construction output expected to grow from 4.6% in 2022 to 5.2% in 2024[59] - The company will continue to monitor the macroeconomic environment and implement contingency plans to ensure project progress and strict cost control[59] Shareholder and Governance - The board does not recommend the payment of a final dividend for the year ended December 31, 2023[6] - The company received confirmation from its controlling shareholder regarding compliance with non-competition commitments for the fiscal year ending December 31, 2023[88] - The audit committee, consisting of three independent non-executive directors, is responsible for reviewing and supervising the company's financial reporting, risk management, and internal control procedures[98] - The audited consolidated financial results for the fiscal year ending December 31, 2023, have been reviewed by the audit committee and confirmed to be consistent with the amounts reported by the company's auditor, Baker Tilly TFW LLP[100] Investments - The fair value of investments as of December 31, 2023, was determined to be SGD 5.765 million, reflecting a change of SGD 14,000 in fair value compared to SGD 89,000 in the previous year[56] - The fair value of the company's investment in D.D. Resident Co., Ltd. was approximately SGD 4.2 million as of December 31, 2023, representing about 6.0% of the total assets[83] - As of December 31, 2023, the fair value of the investment was SGD 4.22 million, with a recognized fair value loss of SGD 14,000[102]
守益控股(02227) - 2023 - 年度业绩