Financial Performance - The company's revenue for the year ended December 31, 2023, was approximately SGD 309.2 million, representing a 50.6% increase from SGD 205.3 million in 2022[11][15]. - Gross profit for the year was approximately SGD 5.3 million, a significant recovery from a gross loss of SGD 5.8 million in 2022[15]. - The construction and contracting segment accounted for approximately 99.3% of total revenue, with income from this segment rising to SGD 306.9 million from SGD 203.4 million in the previous year[15]. - Other income increased by approximately SGD 0.7 million or 107.1%, from SGD 0.6 million to SGD 1.3 million, primarily due to increased bank interest income from short-term deposits[15]. - The company reported a pre-tax profit of approximately SGD 2.0 million for the year[11]. - The group's income tax expense increased from approximately SGD 0.1 million for the year ended December 31, 2022, to about SGD 0.2 million as of December 31, 2023, resulting in a profit before tax of approximately SGD 2.0 million and a profit attributable to owners of approximately SGD 1.8 million[18]. - As of December 31, 2023, the group's cash and cash equivalents amounted to approximately SGD 55.3 million, an increase of about SGD 25.4 million from approximately SGD 29.9 million as of December 31, 2022[25]. - The group's debt included bank borrowings of approximately SGD 12.4 million as of December 31, 2023, down from about SGD 14.7 million in 2022, with a debt-to-equity ratio of 0.32 times compared to 0.40 times in the previous year[25]. - The board does not recommend the distribution of dividends for the year ended December 31, 2023, maintaining the same stance as in 2022[31]. - The company reported cumulative losses of SGD 5,877,036 as of December 31, 2023, compared to SGD 5,477,470 in the previous year[53]. Operational Highlights - The injury rate for the first half of 2023 was 213 cases per 100,000 workers, significantly lower than the national annualized rate of 352 cases[12]. - The construction industry in Singapore showed signs of recovery, with a year-on-year growth of 9.1% in Q4 2023 compared to 6.2% in the previous quarter[14]. - The company aims to continue prioritizing safety, innovation, and sustainability in its operations moving forward[12]. - The company has sufficient liquidity to continue operations for at least 12 months following the reporting period[14]. - The company received multiple awards in 2023, including the Project Safety and Health Award and a bronze award at the SCAL Productivity & Innovation Awards[11]. - The group maintained an accounts receivable turnover period of 9 days as of December 31, 2023, consistent with the previous year, due to a significant portion of revenue coming from public sector clients who pay promptly[25]. Strategic Initiatives - The group plans to diversify its revenue sources by entering the real estate development business to strategically leverage existing resources and capture new opportunities in Singapore's industrial real estate market[20]. - The total construction demand in Singapore is projected to be between SGD 32 billion and SGD 38 billion in 2024, with the public sector expected to contribute SGD 18 billion to SGD 21 billion[20]. Corporate Governance - The board of directors includes Mr. Yang, Ms. Han, and Ms. Zeng, with Mr. Yang holding 51.13% of the company's shares through Huada Development[71]. - The board consists of five members, with independent non-executive directors making up 60% of the board[122]. - The company has a diversity policy in place, aiming to maintain a balanced representation of skills, experience, and perspectives on the board[129]. - The board has established three committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee[134]. - The company has received annual independence confirmations from all independent non-executive directors[122]. - The board is responsible for assessing and ensuring effective risk management and internal control systems[160]. - The company adhered to all applicable corporate governance codes, except for a deviation noted in the report[115]. Environmental and Social Responsibility - The group has established a comprehensive environmental management system to reduce waste and minimize its environmental footprint[181]. - The group is committed to enhancing ESG risk management oversight and has set and reviewed ESG goals during the reporting period[181]. - The group emphasizes the importance of sustainable development as an integral part of its business operations[185]. - The group aims to achieve sustainable development goals through the collective efforts of employees, suppliers, and customers[185]. - The group is focused on creating an inclusive work environment prioritizing the health, safety, and well-being of employees, customers, and the community[182]. - The company is committed to preventing environmental pollution and improving environmental performance through compliance with environmental laws and regulations[191]. - The company is actively participating in community charity and volunteer activities to promote community development[188]. Risk Management - The company faces risks related to changes in economic conditions that may directly impact the real estate market and construction demand in Singapore[51]. - The company faces financial risks including interest rate risk, currency risk, credit risk, liquidity risk, and stock price risk, and has established policies to manage these risks[58]. Employee Relations - The company has a strong commitment to employee relations, providing reasonable compensation and organizing annual team-building activities to enhance employee belonging[61]. - As of December 31, 2023, the company employed 360 staff, with male employees accounting for 89.2% and female employees for 10.8%[130]. Customer and Supplier Management - The company emphasizes customer feedback to improve service quality and maintain strong customer relationships[62]. - The largest customer accounted for 77.8% of sales, while the top five customers represented 99.3% of total sales as of December 31, 2023[98]. - The largest supplier contributed 32.2% to procurement, and the top five suppliers accounted for 47.3% of total procurement[99]. Audit and Compliance - The audit committee reviewed the group's annual performance and consolidated financial statements for the year ended December 31, 2023, and confirmed compliance with applicable accounting standards and regulations[137]. - Each independent non-executive director attended all audit committee meetings, demonstrating full participation and engagement in oversight responsibilities[140]. Stock Options and Shareholder Information - The stock option plan allows for the issuance of up to 80,000,000 shares, representing 10% of the total shares issued on the listing date[86]. - No stock options have been granted, exercised, canceled, or expired during the financial year ending December 31, 2023[88]. - The company has not entered into any management or administrative contracts related to the majority of its business during the year[93]. - Related party transactions during the year ending December 31, 2023, are disclosed in the consolidated financial statements, with compliance to the Listing Rules[94].
BHCC HOLDING(01552) - 2023 - 年度财报