Revenue Generation - For the financial years ended December 31, 2020, 2021, and 2022, the Group generated approximately S$16.9 million, S$9.0 million, and S$11.4 million from the sale of cleaning systems, representing 79.2%, 60.8%, and 61.4% of total revenue respectively[115]. - Revenue from centralized dishwashing and ancillary services for the same years was approximately S$5.8 million, S$7.8 million, and S$11.4 million, accounting for 20.8%, 39.2%, and 38.6% of total revenue respectively[116]. - The Group's revenue from repair and servicing of cleaning systems was approximately S$1.2 million, S$1.2 million, and S$1.0 million for the years ended December 31, 2020, 2021, and 2022, representing 5.4%, 7.9%, and 5.2% of total revenue respectively[125]. - The top five customers accounted for approximately 88.4%, 80.6%, and 68.1% of total revenue for the financial years ended December 31, 2020, 2021, and 2022, respectively[175]. - The largest customer contributed approximately 61.5%, 32.7%, and 22.0% of total revenue for the same periods[175]. - The Group's total sales for the financial year ended December 31, 2022, amounted to SGD 10,481,000, with 100% of sales to customers in Singapore being from repeat customers[256][257]. - In the financial year ended December 31, 2021, total sales were SGD 7,813,000, with 100% of sales to Singapore customers also from repeat customers[255][257]. - For the financial year ended December 31, 2020, total sales reached SGD 15,783,000, with approximately 61.8% from repeat customers and 38.2% from referrals[254][257]. Product and Service Offerings - The Group's cleaning systems revenue by product type in 2022 included S$5.171 million from aqueous washing systems (49.3%) and S$5.311 million from other equipment (50.7%) with no revenue from plating and cleaning systems[123]. - The Group's centralized dishwashing facility has four semi-automated washing lines, capable of processing 20 to 30 tubs per hour, designed for both Halal and non-Halal dishware[129]. - The company provides centralized dishwashing services at its Hygieia Facility, which has four semi-automated dishwashing lines, including two for Halal dishware and two for non-Halal dishware[155]. - The dishwashing equipment leased to customers can wash up to 150 racks of items per hour, depending on the size of the equipment, and the leases are typically for one to two years[135]. - The cleaning systems are designed and customized based on customer specifications, with precision cleaning systems aimed at meeting specific contamination limits[136]. Operational Capabilities - The Group's subsidiaries include JCS-Echigo Pte. Ltd., Hygieia Warewashing Pte. Ltd., and Evoluxe Pte. Ltd., which support its operational capabilities[103]. - The Group has a well-equipped JCS Facility for the fabrication, production, assembly, and in-house testing of cleaning systems and equipment[145]. - The average utilization rate of major machinery and equipment at the JCS Facility exceeded 100% during the financial years ended December 31, 2020, 2021, and 2022, limiting the ability to take on new orders[253]. - The average utilization rate of the CNC lathe machine was 137.2% in 2022, up from 103.5% in 2021[208]. - The average utilization rate of the laser cutting machine was 134.7% in 2022, compared to 112.5% in 2021[208]. Customer Relationships - The company typically enters into contracts for centralized dishwashing and general cleaning services for a term of one to two years, with a long-term relationship of at least three to four years with most customer groups[133]. - The company has maintained stable relationships with major customers, including renowned HDD manufacturers and food and beverage operators, with some relationships exceeding 10 years[190]. - The Group's customer base includes corporate groups from various countries, including Malaysia, Australia, the U.S., Thailand, Belgium, Philippines, India, South Korea, Taiwan, Japan, and the PRC[253]. Market Trends and Projections - The autonomous robotic cleaning equipment industry is projected to grow at a CAGR of 30.5% from 2021 to 2025, driven by increased demand for unmanned cleaning solutions[202]. - The manufacturing of precision cleaning equipment in Singapore is expected to grow at a CAGR of approximately 10.7% from 2021 to 2025, largely due to the expansion in the electronics sector[204]. - Approximately 80% of the potential food and beverage market for dishwashing services remains untapped in Singapore[248]. Compliance and Regulations - The Environmental Protection and Management Act imposes fines up to S$5,000 for first-time noise regulation violations, increasing to S$10,000 for subsequent offenses[275]. - The Radiation Protection Act allows fines up to S$100,000 or imprisonment for up to five years for unauthorized possession of radioactive materials[276]. - The Workplace Safety and Health Act mandates employers to ensure a safe work environment, with fines up to S$500,000 for corporate violations[281]. - Under the Work Injury Compensation Act, employers must compensate employees for work-related injuries, covering medical expenses and lump sum payments for permanent incapacity[288]. - Employers are required to maintain work injury compensation insurance for all employees, with penalties for non-compliance reaching S$10,000 or imprisonment for up to 12 months[291]. Research and Development - The company plans to expand its R&D and engineering team by hiring at least three engineers to enhance its product portfolio and competitive edge[203]. - The company has developed an initial prototype of a robot floor scrubber and is collaborating on an autonomous train interior cleaning robot, showcasing its R&D capabilities[192]. - The company intends to strengthen its production capabilities by purchasing upgraded machinery and equipment for its JCS Facility[204]. Supply Chain and Production - The company did not experience material supply chain disruptions during the Circuit Breaker Period, maintaining operational stability[224]. - The company can reduce engineering process time for subsequent units by approximately 90% compared to the first machine built, enhancing production efficiency[211]. - The company plans to consider adding shifts or increasing weekend hours to meet production demands if current usage does not suffice[212]. Employment and Workforce - The Group employed a total of 102 persons as of December 31, 2022, an increase from 90 in 2021 and 88 in 2020[260]. - The Group's sales and marketing efforts were minimal in 2022 due to a focus on fulfilling orders from repeat customers[253]. - As of April 24, 2023, the sales and marketing team consisted of one full-time employee based in Singapore[249].
JE Cleantech(JCSE) - 2022 Q4 - Annual Report