Financial Performance - The group's revenue increased by approximately 37.2% to about SGD 18.8 million for the fiscal year ending December 31, 2023, compared to SGD 13.7 million in the previous year[13]. - Gross profit rose by approximately 47.6% to about SGD 3.1 million, with a gross margin of 16.5%, up from 15.3% in the previous year[16]. - The net loss for the previous fiscal year was eliminated, resulting in a net profit for the fiscal year ending December 31, 2023[16]. - Revenue increased from approximately SGD 13.7 million in FY2022 to approximately SGD 18.8 million in FY2023, representing a growth of 37.2%[18]. - Other income grew from approximately SGD 2.8 million in FY2022 to approximately SGD 4.4 million in FY2023, primarily due to increases in bank interest income and rental income[22]. - The group reported a loss of approximately SGD 7,000 in FY2023, a decrease of 99.2% from a loss of approximately SGD 0.9 million in FY2022[26]. Project and Contract Management - The group has five ongoing projects with a total contract value of approximately SGD 56.8 million, of which about SGD 31.9 million has been recognized as revenue as of December 31, 2023[15]. - The company typically retains 5% of the contract value as retention money, which may affect cash flow if clients delay payments or do not release retention money on time[95]. - The company faces significant risks due to the non-recurring nature of its projects, which may impact financial performance if new contracts are not secured after current projects are completed[92]. Cost and Expense Management - Service costs rose from approximately SGD 11.6 million in FY2022 to approximately SGD 15.8 million in FY2023, an increase of 36.2%[20]. - Administrative expenses increased from approximately SGD 5.2 million in FY2022 to approximately SGD 6.9 million in FY2023, a rise of 32.7%[23]. - Financing costs increased from approximately SGD 0.1 million in FY2022 to approximately SGD 0.3 million in FY2023, a significant increase of 200.0%[24]. - The group will continue to implement strict cost control measures and monitor the macroeconomic environment to address potential challenges[12]. Workforce and Human Resources - As of December 31, 2023, the group had a total of 145 employees, with total employee costs amounting to approximately SGD 6.4 million, an increase from SGD 6.1 million in the previous fiscal year[39]. - The company regularly assesses its human resources to ensure sufficient labor is available to meet project demands[96]. - A majority of the company's workforce consists of foreign employees, and any inability to hire or retain them could adversely affect operations and financial performance[95]. Market Outlook - The Singapore construction industry is projected to grow by 5.2% in 2024, driven by both public and private sector projects[12]. - The group anticipates strong construction demand in the public sector, with stable private sector project demand in the medium term[9]. Corporate Governance - The company has fully complied with all applicable principles and code provisions of the Corporate Governance Code for the year ended December 31, 2023[130]. - The board is responsible for leading and controlling the company, with management delegated to oversee daily operations[134]. - The company aims to foster a corporate culture based on honesty, transparency, and responsibility, contributing to sustainable long-term performance[131]. - The board currently consists of five directors, with a mix of ages and nationalities, ensuring diverse perspectives[173]. Risk Management - The company has established a framework for risk management and internal controls, which is regularly reviewed by the board[141]. - The audit committee has reviewed the audit qualifications and agrees with management's view that the classification of the investment is appropriate[186]. - Crowe Horwath's review of the group's risk management and internal control systems found no significant deficiencies, and management has committed to addressing identified issues[189]. Community Engagement - The group reported charitable donations of SGD 60,940 for the fiscal year ending December 31, 2023, compared to SGD 11,160 in 2022, indicating a significant increase in community support[77]. Future Plans - The group plans to enhance its workforce and adopt new construction technologies to improve productivity and maintain competitive advantages in bidding for new projects[12]. - The group plans to demolish an entire property and construct a four-story building for warehouse, office, dormitory, and ancillary facilities, with construction expected to commence in the next fiscal year[40]. Shareholder Information - The board has resolved not to recommend any final dividend for the fiscal year ending December 31, 2023, consistent with the previous year where no dividend was declared[75]. - As of December 31, 2023, Mr. Zheng Yonghua holds 60.05% of the company's shares, while Mr. Zhang Ruiqing holds 57.86%[104].
守益控股(02227) - 2023 - 年度财报