Investor Relations

Financial Summary

Full Year Results Ended 31 December 2024

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Condensed Interim Consolidated Statement of Profit or Loss and Other Comprehensive Income

* - Amount less than $1,000
NM - Not meaningful

Condensed Interim Statements of Financial Position

Review of performance of the Group

Overview

For the six months ended 31 December 2024 (“2H2024”), the Group’s revenue achieved a revenue of S$50.4 million (2H2023: S$43.2 million). The Group’s net profit attributable to equity holders of the Company for 2H2024 was S$4.3 million, signifying an improvement from S$0.3 million in 1H2023.

For the full year ended 31 December 2024 (“FY2024”), the Group achieved a revenue of S$83.0 million, reflecting a modest growth of 0.9% compared to S$82.2 million for FY2023. Net profit attributable to equity holders of the Company in FY2024 was S$3.2 million, an improvement as compared to S$2.5 million in FY2023.

As at 31 December 2024, the Group’s total equity attributable to shareholders was S$140.0 million, an increase from S$136.6 million as of 31 December 2023. At 31 December 2024, the Group has cash and bank balances of S$38.3 million, maintaining a net cash position with low debt-to-total equity ratio of 26.8% (FY2023: 35.4%).

Condensed Interim Consolidated Statement of Profit or Loss and Other Comprehensive Income

Revenue

The Group’s revenue increased by 16.7% to S$50.4 million in 2H2024 as compared to 2H2023 and increased by 0.9% to S$83.0 million in FY2024 as compared to S$82.2 million in FY2023.

This was primarily attributed to the increase in project revenue from the EC and SE segments in 2H2024, driven by the strong progression of work completed during the period. Despite this growth, there was a notable decline in revenue from the CP and TC segments, resulting from the management’s adjustment of its strategy to prioritize securing more favourable orders in response to intensified inflationary pressure and price volatility in the market, including site and blasting jobs, as well as aluminum trading.

Gross Profit and Gross Profit Margin ("GPM")

Overall, the Group’s gross profit experienced a modest decline of 8.5%, from S$12.9 million in FY2023 to S$11.8 million in FY2024, primarily due to delays in project schedules during 1H2024 and inflationary pressures on operating costs within the EC segment. Despite this, the EC segment remains the Group's strongest contributor to gross profit, followed by the SE segment.

EC segment

The results indicate that the performance of the EC segment remained stable in the second half of the year, with a slight decrease in its gross profit contribution, from S$3.7 million in 2H2023 to S$3.5 million in 2H2024. This was primarily driven by the strong progression of work completed during the period. The gross profit margin decreased from 23.3% in FY2023 to 15.5% in FY2024.

CP segment

The CP segment recorded a 346.2% increase in gross profit, from S$0.4 million in 2H2023 to S$1.6 million in 2H2024, primarily driven by an increase in orders in 2H2024, along with cost-cutting measures implemented during the period. The gross profit margin improved from 12.9% in FY2023 to 15.7% in FY2024.

SE segment

The SE segment gross profit improved in 2H2024 from S$1.2 million in 2H2023 to S$2.7 million in 2H2024 driven by increase in number of EPC works being carried out and higher inverter sales during the period. The gross profit margin also improved from 15.4% in FY2023 to 20.8% in FY2024.

Other Income

Other income decreased by 48.4%, from S$1.8 million in 2H2023 to S$0.9 million in 2H2024, and slightly decrease by 3.3%, from S$3.2 million in FY2023 to S$3.1 million in FY2024. This decline was primarily due to a reduction in bank interest income earned from fixed deposit placements with banks.

Selling, Distribution, Administrative and Other Operating Expenses (OPEX)

Total OPEX in 2H2024 was 4.7% higher than the corresponding period in the previous year. Total OPEX increased year-on-year from S$11.7 million in FY2023 to S$12.2 million in FY2024.

Selling and distribution expenses increased in 2H2024 primarily due to a rise in travelling and entertainment expenses.

Administrative expenses increased by 22.3% from S$2.9 million in 2H2023 to S$3.6 million in 2H2024. This increase was mainly driven by inflationary pressures.

Other operating expenses decreased by 20.6% from S$2.3 million in 2H2023 to S$1.8 million in 2H2024 mainly due to reduce in other indirect costs related to business activities.

Overall, selling, distribution, administrative and other operating expenses rose slightly by 4.3% in FY2024, aligning with the strategic cost-cutting measures implemented during the second half of the financial year, despite ongoing inflation pressure.

Finance Costs

Finance costs decreased from S$0.6 million in 2H2023 to S$0.4 million in 2H2024, primarily driven by reduce in utilization of trust receipts and bills payable.

Share of loss of associate, net of tax

In 2H2024, the share of loss from the associate was S$Nil, compared to a loss of S$237 in FY2023. The associate was dormant and undergoing the liquidation process.

Condensed Consolidated Statements of Financial Positions

Non-current assets increased by S$84,000 mainly due to fair value gain on other financial assets. This was partially offset by depreciation for the property, plant and equipment and right-of-use assets.

Current assets decreased by S$7.5 million from S$118.9 million as at 31 December 2023 to S$111.4 million as at 31 December 2024. This was largely attributed to:

• Decrease in cash and bank balances primarily due to cash outflows from financing activities.
• Increase in trade and other receivables was driven by increase in billings raised at the end of the year along with increase in advances to suppliers/subcontractors by EC, SE and TC segments for its on-going projects and material procurements.
• Increase in inventories primarily due to higher inventory levels in the EC segment, which are prepared for fabrication process.

Current liabilities decreased by S$7.9million from S$36.9 million as at 31 December 2023 to S$29 million as at 31 December 2024. This was largely attributed to:

• Increase in trade and other payables of S$1.4 million mainly due to lesser utilization of trade financing which is evident from the decrease in amounts due to bankers – trust receipts.
• Increase in contract liabilities mainly due to advance from customers for the Solar & TC segments.
• Decrease in amounts due to bankers was mainly due to repayments during the financial year and a reduction in the utilization of term loans and bills payable.
• Decrease in term loan mainly due to repayments during the financial year.

Non-current liabilities decreased mainly due to repayment for its term loans.

Total equity as of 31 December 2024 increased to S$140.0 million, compared to S$136.6 million as of 31 December 2023. The growth was principally attributable to the profit for the year and a fair value gain on non-current other financial assets, which partially offset by dividend payout of S$1.73 million.

Condensed Consolidated Statement of Cash Flows

During the reporting period, the Group recorded a net cash inflow of S$1.8 million, principally due to: -

1. Net cash generated from operating activities amounted to S$3.5 million, primarily driven by improvements in working capital management.
2. Net cash generated from investing activities amounted to S$3.5 million, predominantly driven by proceeds from the disposal of land held for sale, partially offset by the acquisition of plant and equipment during the year.
3. Net cash used in financing activities amounted to S$5.2 million, primarily driven by a dividend payout of S$1.7 million, net repayments of trust receipts totaling S$3.3 million, and lease liability repayments of S$0.3 million.

After taking into account the above net cash flows and net foreign currency translation adjustments, the Group’s cash and cash equivalents as at 31 December 2024 stood at S$38.3 million.

Commentary

The Group is cautiously optimistic of business opportunities in the E&C & Solar Energy segment, which were driven by major government projects for MRT network expansion as well as government’s emphasis on sustainability hence actively pursuing regional collaborations to enhance its renewable energy supply. This nevertheless, lead to stricter environmental regulations, influencing the demand for eco-friendly corrosion prevention solutions. To continue to navigate these challenges, the Group will remain focus on balancing cost control with competitive pricing to maintain competitive and sustain growth.