Chairman's Statement
Dear Shareholders,
The geopolitical and macroeconomic landscape has been increasingly unpredictable, largely affected by factors such as the Trump administration's tariff threats. These circumstances have led to diminished visibility and predictability in the global market. Furthermore, ongoing trade tensions among major economies complicate the situation, increasing production costs and disrupting supply chains, investment, and trade. We are looking at the situation and addressing these challenges with strategic measures to mitigate risks and sustain growth.
FINANCIAL HIGHLIGHTS
In the year just ended 31 December 2024, the Group's net profit attributable to shareholders rose 28.3% to S$3.2 million.
Group revenue reached nearly S$83.0 million due to increased project revenue from the Engineering & Construction ("EC") and Solar Energy ("SE") segments, especially in the second half of 2024, driven by a strong pipeline of completed work.
Revenue decreased in the Corrosion Prevention ("CP") and Trading of Commodities ("TC") segments due to a more selective approach in accepting orders, influenced by increased inflationary pressures and price fluctuations in site and blasting jobs.
As of 31 December 2024, the Group's total equity rose by 2.6% to S$140.0 million, due to profits generated during the year and a fair value gain on non-current other financial assets. The cash position rose to S$38.3 million, providing sufficient headroom to meet the Group's obligations and operational needs.
As of 31 December 2024, the Group's total equity rose by 2.6% to S$140.0 million, due to profits generated during the year and a fair value gain on non-current other financial assets. The cash position improved to S$38.3 million, providing sufficient headroom to meet the Group's obligations and operational needs.
DIVIDENDS
The Directors have proposed a first and final cash dividend of 0.229 Singapore cent per ordinary share. If approved at the Annual General Meeting, this dividend will be paid on a date to be announced later.
BUSINESS PROSPECTS
Global growth is expected to slow in 2025 due to geopolitical tensions, increasing risks to the global outlook. Trade tensions among major economies may push production costs higher, disrupting supply chains, investment, and trade.
The Group sees business opportunities in the E&C & Solar Energy segment, driven by major government projects for MRT network expansion and the government's emphasis on sustainability. The Group is actively pursuing regional collaborations to enhance its renewable energy supply. This has led to stricter environmental regulations, impacting the demand for eco-friendly corrosion prevention solutions. To navigate these challenges, the Group will focus on balancing cost control with competitive pricing to maintain competitiveness and sustain growth.
PROPOSED ACQUISITION
On 4 September 2024, the Group announced its plan to acquire Guangxi Tidal Precision Technology Co., Ltd and Nanning Tidal Aluminium Co., Ltd in China. This acquisition allows the Group to diversify into precision aluminium manufacturing and recycling for the automotive electric vehicle ("EV") industry. Guangxi TPT produces cast-rolled and cold-rolled aluminium coils, selling to aluminium foil manufacturers who supply EV battery makers. Nanning Tidal Aluminium recycles aluminium waste into ingots.
The Board believes this acquisition facilitates the Group's entry into the growing precision aluminium market with minimal start-up risks as production lines are already operational and sales have begun. The target companies' main customers are in the EV battery market, which is expected to grow rapidly with China's expanding EV market.
APPRECIATION
The path forward will undoubtedly present numerous uncertainties, requiring directors, management, and staff within the Group to adopt agile and strategic approaches to address the significant challenges that lie ahead.
As we advance with determination, I would like to express my sincere appreciation to my fellow Board members, our management, and staff for their dedication and commitment. On behalf of the Board, we also extend our heartfelt gratitude to our business partners, customers, and other stakeholders for their unwavering cooperation and support.
We anticipate another rewarding year in our continued efforts.
MR TENG CHOON KIAT
Executive Chairman