Revenue Generation - The company generated approximately SGD11.0 million in revenue from the sale of cleaning systems and other equipment for the year ended December 31, 2023, representing 61.0% of total revenue[141]. - Revenue from the provision of centralized dishwashing and ancillary services was approximately SGD7.0 million for the year ended December 31, 2023, accounting for 39.0% of total revenue[142]. - Revenue from cleaning systems and other equipment totaled SGD 10,181,000 in 2023, a decrease of 2.9% from SGD 10,482,000 in 2022[149]. - Revenue from repair and servicing of cleaning systems was SGD 0.8 million in 2023, representing 4.5% of total revenue, a decline from 5.2% in 2022[151]. - Sale of STICO anti-slip shoes generated SGD 92,000 in 2023, a decrease of 42.0% from SGD 159,000 in 2022[152]. - The company achieved total sales of SGD 10,181,000 in 2023, with 100% of sales coming from existing customers[262]. - In 2023, the company completed 240 orders, a significant increase from 127 orders in 2022[262]. - The revenue from Singapore in 2023 was SGD 5,609,000, accounting for 55.1% of total sales[262]. Share and Compliance Information - The company completed its Initial Public Offering on April 22, 2022, raising approximately $12 million from the sale of 3,020,000 Ordinary Shares at a price of $4.00 per share[116]. - A share consolidation was executed at a ratio of 1-for-3 effective October 13, 2023, reducing the number of outstanding shares from 15,020,000 to 5,006,666[123]. - Following the share consolidation, the daily closing bid price of the company's Ordinary Shares remained above $1.00 for ten consecutive business days from October 16, 2023, to October 27, 2023, regaining compliance with Nasdaq listing standards[127]. - The company received a Nasdaq notification on December 14, 2023, indicating failure to maintain a minimum bid price of $1.00, with a compliance period until June 11, 2024, to regain compliance[118]. Operational Capabilities - The company has been engaged in the manufacture and sale of cleaning systems since 2006, with a focus on precision cleaning for various industrial applications[140]. - The company has provided centralized dishwashing services since 2013, primarily for food and beverage establishments in Singapore[140]. - The company operates four semi-automated dishwashing lines at its Hygieia Facility, capable of washing 20 to 30 tubs per hour[155]. - The company has been providing general cleaning services since 2015, including off-site centralized dishwashing and on-site cleaning services[158]. - The company designs and manufactures cleaning systems tailored to customer specifications, focusing on precision cleaning for industries such as HDD and semiconductors[162]. - The lead time from order confirmation to delivery of the final cleaning system generally takes approximately 8 to 18 weeks, depending on design complexity and component lead time[182]. - The centralized dishwashing process includes four semi-automated lines, with two for Halal dishware and two for non-Halal dishware[183]. - The lead time from collection of soiled dishware to completion of the dishwashing process is approximately 4 to 12 hours, depending on customer location and collection frequency[190]. - The lead time from inspection and quality checks on cleaned dishware to delivery back to customers is approximately 3 to 12 hours[193]. Customer Relationships and Sales Concentration - Top five customers accounted for approximately 80.6%, 68.1%, and 66.1% of total revenue for the years ended December 31, 2021, 2022, and 2023, respectively[205]. - The largest customer represented approximately 32.7%, 22.0%, and 24.2% of total revenue for the corresponding years[205]. - Customer Group A's sales decreased from SGD 4,833 in 2021 to SGD 4,094 in 2022, and then to SGD 1,212 in 2023, showing a significant decline[206][207][209]. - Customer Group B's sales showed a slight increase from SGD 3,188 in 2021 to SGD 3,902 in 2022, but decreased to SGD 3,495 in 2023[206][207][209]. - The company has maintained stable relationships with major customers, with three customers having over 11 years of business relationships[220]. Innovation and R&D - The company has developed an initial prototype of a robot floor scrubber and is collaborating on an autonomous train interior cleaning robot, indicating a focus on innovation and automation[222][229]. - The R&D and engineering team consists of 11 members, with six holding engineering degrees, highlighting the company's commitment to strong technical capabilities[221]. - The company aims to expand its product portfolio and R&D capabilities to align with Industry 4.0 initiatives and meet increasing customer demands[227][228]. - The autonomous robot floor scrubbers are expected to be marketed to existing customers in the food and beverage industry, leveraging the push for Industry 4.0 initiatives in Singapore[230]. - The autonomous robotic cleaning equipment industry in Singapore is projected to grow at a CAGR of 30.5% from 2021 to 2025, driven by increased demand for unmanned cleaning solutions due to the COVID-19 pandemic[231]. - The company has registered 24 patents across multiple countries, including Singapore, Malaysia, the United States, Taiwan, and the PRC[264]. Facility Utilization and Capacity - The utilization rates of the Hygieia Facility's washing lines showed a steady increase, with the average utilization rate for the Halal semi-automated washing line reaching 80.5% in 2023[238]. - The processing capacity of the Hygieia Facility for Halal semi-automated washing line A was 148,010 tubs annually, with an actual processing volume of 119,148 tubs in 2023[238]. - The average utilization rate of the non-Halal washing lines at the Hygieia Facility reached 87.4% in 2023, indicating increased demand for centralized dishwashing services[238]. - The JCS Facility has sufficient capacity to process orders for cleaning systems for at least the next 12 months, with engineering work accounting for over 60% of the total production lead time[234]. - The total estimated usable floor area utilized by machinery at the JCS Facility is approximately 1,219.4 square meters, representing about 83.0% of the available space[236]. - The JCS Facility's production capacity is customized based on customer requirements, making it difficult to quantify exact production rates[233]. Market Conditions and Trends - The precision cleaning equipment market in Singapore is consolidated, with over 80% of the market share held by the top five companies[252]. - The dishwashing services market in Singapore has a low penetration rate, with approximately 80% of the potential market untapped[253]. - The Singapore government is supporting the growth of the autonomous robotic cleaning industry through grants and incentives for technology adoption[231]. - The company has participated in overseas exhibitions and trade shows to enhance its market presence and promote its products[255]. Employment and Regulatory Compliance - As of December 31, 2023, the company employed 103 persons, an increase from 102 in 2022[265]. - The progressive wage model in Singapore mandates a wage plan for resident cleaners, specifying basic wages and aligning with the Commissioner for Labor's recommendations[274]. - Yearly wage adjustments were recommended from 2017 to 2019, with scheduled increases from 2020 to 2022, and an annual bonus equivalent to two weeks of basic wages starting in 2020[275]. - A six-year schedule of sustained wage increases is set to begin on July 1, 2023, and will be reviewed in 2025[276]. - Cleaners must complete at least one module under the EC WSQ framework to improve employability and career progression[277]. - The number of WSQ training modules for all cleaners will increase to two by December 31, 2023, and to three beyond 2025[279]. - The Environmental Protection and Management Act imposes fines up to SGD10,000 for non-compliance with noise regulations in workplaces[280]. - The Radiation Protection Act regulates the possession and use of radioactive materials, with fines up to SGD100,000 for violations[281]. - The Workplace Safety and Health Act requires employers to ensure a safe work environment, with fines up to SGD500,000 for breaches[286]. - The Work Injury Compensation Act provides compensation for employees injured in work-related accidents, covering medical expenses and lump sum payments[292]. - Employers must conduct risk assessments and maintain records for at least three years, with fines for non-compliance up to SGD20,000[290]. - Employers must maintain work injury compensation insurance for all employees engaged in manual work regardless of salary level, and for non-manual workers earning SGD2,100 or less per month[296]. - Employers who fail to provide adequate insurance face fines up to SGD10,000 or imprisonment for up to 12 months, or both[296]. - The Employment Act covers employees under a contract of service, excluding freelance contractors and certain managerial positions[297]. - Workmen earning basic monthly salaries of not more than SGD4,500 are covered under Part IV of the Employment Act, which includes provisions for working hours and overtime[300]. - Employers breaching Part IV of the Employment Act may incur fines up to SGD5,000 for the first offense, and up to SGD10,000 for subsequent offenses[301]. - Foreign employees must obtain a valid work pass, with penalties for non-compliance ranging from SGD5,000 to SGD30,000 or imprisonment[305]. - Medical insurance for foreign workers must cover at least SGD15,000 per 12-month period for inpatient care[307]. - The quota for foreign workers in the services sector is set at 35%, with local employees counted based on their salary levels[313]. - Employers pay tiered levies for foreign workers, with rates varying based on the percentage of foreign workers in the total workforce[312]. - The maximum employment period for foreign workers on a work permit varies by nationality, with PRC basic skilled workers limited to 14 years[311].
JE Cleantech(JCSE) - 2023 Q4 - Annual Report