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Half Year Financial Statement s and Dividend Announcement for the 6 months financial period ended 30 June 2017

Financials Archive

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Profit & Loss

Profit & Loss



Comprehensive Income

Comprehensive Income



Balance Sheets

Balance Sheet

Review of Performance


Review of Income Statement

The Group generated revenue of S$54.03 million in the half year ended 30 June 2017 ("HY2017"), a decrease of S$16.99 million, or 23.92% as compared to the half year ended 30 June 2016 ("HY2016"). The decrease in revenue was due mainly to absence of project income from a number of larger projects which we saw in HY2016 but not in HY2017. Gross Profit margins improved by 5 percentage points despite lower revenue in HY2017 as the Group booked less lower margin project-based income in HY2017 as compared with HY2016.

Other income decreased by S$0.85 million or 73.78% in HY2017. Other income in HY2016 related mainly to reversal of payables in Cambodia, interest income from fixed deposits, recovery of doubtful debts and gain on disposal of motor vehicles.

Administrative expenses increased by S$1.17 million or 16.76% to S$8.12 million due partly to higher legal and professional fees relating to the on-going corporate exercises and litigation that the Group is involved in, and higher salary expenses.

Review of Statements of Financial Position

Non-current assets increased by S$0.28 million to S$24.21 million as at 30 June 2017 from S$23.93 million as at 31 December 2016 due mainly to addition of motor vehicles in HY2017.

Inventories increased by S$2.63 million to S$14.34 million as at 30 June 2017 due mainly to stocking up inventory to be delivered in the second half of 2017.

Trade and other receivables increased by S$0.91 million to S$20.34 million as at 30 June 2017 from S$19.43 million as at 31 December 2016 due mainly to higher Aircon sales in May and June 2017.

Total loans and borrowings decreased by S$2.79 million to S$10.31 million as at 30 June 2017 from S$13.10 million as at 31 December 2016. The decrease is due mainly to repayment of bank loans in respect of our Toh Guan property and reduction of our more expensive working capital financing facilities.

Trade and other payables increased by S$0.34 million to S$37.15 million as at 30 June 2017 from S$36.81 million as at 31 December 2016 due mainly to higher Aircon purchases in May and June 2017.



Commentary

The Board of the Directors of the Company expects the Group's operating environment and conditions to be challenging for the next 12 months. The Group will continue to enhance its efforts to promote sales and to increase margins by improving operational efficiency and rationalising cost structure in order to enhance our competitiveness.

In respect of the Group investment in HMK Energy Pte. Ltd., the Board of the Directors continue to assess options with a view to unlocking shareholder value.