Financial Performance - Total revenue for the year ended December 31, 2021, was approximately SGD 71.6 million, a decrease of about 1.4% compared to SGD 72.6 million for the year ended 2020[18]. - Cost of sales for the year ended December 31, 2021, was approximately SGD 57.2 million, an increase of about 13.3% from SGD 50.5 million for the year ended 2020[19]. - Gross profit decreased from approximately SGD 22.2 million for the year ended December 31, 2020, to approximately SGD 14.5 million for the year ended December 31, 2021, with a gross margin decline from 30.5% to 20.2%[21]. - Net profit for the year ended December 31, 2021, was approximately SGD 5.1 million, a decrease of about 41.9% compared to SGD 8.8 million for the year ended December 31, 2020[25]. - Administrative and listing expenses reduced from approximately SGD 12.5 million for the year ended December 31, 2020, to approximately SGD 8.5 million for the year ended December 31, 2021[22]. - Financial costs decreased from approximately SGD 0.4 million for the year ended December 31, 2020, to SGD 0.3 million for the year ended December 31, 2021, due to reduced use of short-term financing[23]. Assets and Liabilities - The group's total assets increased to SGD 56.5 million in 2021 from SGD 50.2 million in 2020, representing an increase of approximately 12.5%[13]. - Total liabilities rose to SGD 18.8 million in 2021 from SGD 17.6 million in 2020, an increase of about 6.9%[13]. - The equity attributable to the company's owners increased to SGD 37.7 million in 2021 from SGD 32.6 million in 2020, reflecting an increase of approximately 15.5%[13]. - Current assets as of December 31, 2021, were approximately SGD 51.6 million, including cash and cash equivalents of approximately SGD 31.0 million[26]. - The current ratio as of December 31, 2021, was 4.1, compared to 3.6 as of December 31, 2020[26]. Operational Overview - The group had 278 ongoing service contracts as of June 30, 2022, with an outstanding contract value of approximately SGD 43.7 million[16]. - The company faced operational risks including fixed-term service contracts ranging from one to three years and potential cost overruns[67]. - The company primarily engages in providing cleaning services through its subsidiaries[63]. - The group employed 2,294 full-time employees and 181 part-time employees as of December 31, 2021, a decrease from 2,331 full-time and 222 part-time employees in the previous year[98]. Market Position and Strategy - The group aims to maintain its market leadership in the environmental services industry and enhance its market position[17]. - The company is committed to providing consistent high-quality cleaning services and will make necessary adjustments to adapt to market conditions[17]. - The company has been recognized with a silver award for cleaning standards by the National Environment Agency[16]. - The company has not made any charitable donations during the reporting period[66]. Shareholder Information - The company reported a final dividend of SGD 0.00075 per share for the year ended December 31, 2021, subject to shareholder approval at the annual general meeting[71]. - The company has established a dividend policy to ensure appropriate procedures for declaring and recommending dividends, allowing shareholders to share in profits while retaining liquidity for future growth opportunities[72]. - As of December 31, 2021, the company's outstanding bank borrowings amounted to approximately SGD 7.546 million[80]. Governance and Compliance - The company has adopted the corporate governance code and has complied with its provisions since listing until December 31, 2021[165]. - The board of directors has held 8 out of 8 meetings, demonstrating full attendance and engagement in governance matters[168]. - The audit committee reviewed the accounting principles and practices adopted by the group and discussed audit, internal control, and financial reporting matters for the year ending December 31, 2021[156]. - Independent non-executive directors confirmed their independence according to listing rules, ensuring unbiased decision-making[174]. - The company has established appropriate liability insurance arrangements for legal actions against directors[155]. Risk Management - The company is committed to ensuring effective risk management systems to address various operational and market risks[67]. - The group is currently monitoring foreign exchange risks and has no foreign exchange hedging policy in place[35]. Use of Proceeds - The net proceeds from the company's initial public offering amount to approximately SGD 11.8 million after deducting underwriting commissions and other estimated expenses[83]. - As of December 31, 2021, the allocation of net proceeds includes 15.0% (SGD 1,774,000) for the acquisition of Garden View Company, which remains unutilized[86]. - 21.3% (SGD 2,520,000) of the net proceeds is allocated for the procurement of waste treatment equipment, with SGD 150,000 already utilized[86]. - The company plans to continue utilizing the net proceeds in accordance with the purposes outlined in the prospectus[83]. Related Party Transactions - Total amount paid to 2K Services Pte Ltd for the year ended December 31, 2021, was SGD 368,653, which is below the annual cap of SGD 385,000[108]. - Independent non-executive directors confirmed that the related party transactions were conducted in the ordinary course of business and on normal commercial terms[109]. Share Option Plan - The maximum number of shares that may be issued under the share option plan is capped at 10% of the issued shares as of the listing date, equivalent to 200,000,000 shares[122]. - The company has a total of 200,000,000 shares available for issuance under the share option plan, representing 10% of the total shares issued as of December 31, 2021[136]. - No share options were granted, exercised, lapsed, or cancelled under the share option plan for the year ending December 31, 2021[136]. Customer and Supplier Concentration - The largest customer contributed 23.7% to the group's revenue, while the top five customers accounted for 43.3% of total revenue as of December 31, 2021[149]. - The largest supplier and subcontractor represented 12.8% of total procurement, with the top five suppliers and subcontractors making up 41.1% of total procurement as of December 31, 2021[149].
HYGIEIA GROUP(01650) - 2022 - 年度财报