In 2022, Sin Heng achieved the 400th unit milestone purchased from Kato Works, heavy lifting equipment manufacturer. The Group is immensely proud to be the regional authorised distributor of such a reputable brand and reliable equipment.
At the end of FY2022, the Group had a total fleet size of 373 units of cranes and aerial lifts, compared to a total fleet size of 307 units of cranes and aerial lifts in FY2021. The Group continues to expand our rental fleet to capture the emerging market demand.
Financial Performance
For the financial year ended 31 December 2022, the Group has recorded revenue of $51.6 million (2021: $53.7 million) and a net profit of $3.7 million (2021: $3.8 million) while earnings per share was 3.22 cents (2021: 3.31 cents).
Profit or Loss
Other income decreased by 17.0% in FY2022, due to the absence of government job support scheme income in FY2022.
Selling expenses increased by 37.9% in FY2022, due to higher entertainment and travelling expenses incurred compared to FY2021 as travel restrictions were lifted.
Administrative expenses were comparable to FY2021, with a slight increase by 3.3% in FY2022, due to increase in directors’ remuneration and professional fees.
Other operating expenses had decreased by 84.1% in FY2022, which was mainly due to net foreign exchange gain recorded in the periods in FY2022 as compared to a net foreign exchange loss recorded in FY2021.
Finance costs had decreased by 65.0% in FY2022 compared to FY2021 due to lower lease interest expense as certain lease liabilities were fully repaid during the year.
Financial Position
Current assets as at 31 December 2022 had decreased due to decrease in cash and bank balances, which was partially offset by increase in trade and other receivables and inventories.
Non-current assets as at 31 December 2022 had increased mainly due to acquisitions of new cranes (plant and equipment) as rental fleet.
Current liabilities as at 31 December 2022 had increased as a result of drawdown of new lease liabilities (hire purchase) and bills payable, offset by a decrease in other payables.
Non-current liabilities as at 31 December 2022 had increased as a result of drawdown of new lease liabilities (hire purchase).
As at 31 December 2022, total equity decreased by $4.1 million compared to prior year due to payment of dividend offset against net profit for the year.
As at 31 December 2022, the Group registered a positive working capital of $50.1 million as compared to that of $56.0 million as at 31 December 2021. The Group has managed to maintain its net cash position as at 31 December 2022.