Dear Shareholders,
On behalf of the Board of Directors, we are pleased to present to you the annual report of Sin Heng Heavy Machinery Limited and its subsidiaries (the "Group"), for the financial year ended 31 December 2024 ("FY2024").
Year in Review
In FY2024, the Group has recorded total revenue of S$50.3 million and gross profit of S$16.7 million, representing a year-on-year decrease of 24.1% and 9.3%, respectively. Profit for the year was S$6.3 million, a decrease of 21.6% as compared to FY2023.
The Group's entity in Malaysia had successfully completed its operations streamlining during the year, which included the disposal of its rental fleet. With this restructuring now finalised, the Malaysia entity is now focusing on its trading business to better align with the Group's strategic objectives.
In FY2024, the Group also achieved a significant milestone in taking delivery of our 600th Kobelco crawler crane. This is a testament to our enduring commitment to supporting Singapore's construction sector and our ability to demonstrate our operational capacity despite the market challenges.
On other matters, the Group successfully secured a 20-year lease extension from JTC Corporation, extending the tenure of our premise at 26 Gul Road to 2045. This extension reinforces our long-term commitment to operational stability and growth in Singapore's construction sector.
Outlook
The macroeconomic environment continues to present significant challenges, stemming from the recent rise of economy protectionism, persistent geopolitical tensions and economic uncertainty. As these global risks continue to evolve, fluctuations in economic conditions, interest rate shifts, volatile foreign exchange, and inflationary pressure create headwinds that threaten stability in the business environment in the region.
In Singapore, according to the media released by Building and Construction Authority ("BCA") dated 23 January 2025, the projected construction demand is estimated to be between S$47 billion and S$53 billion in nominal terms and between S$35 billion and S$39 billion in real terms. This demand is supported by the anticipated awarding of contracts for major construction and infrastructure developments.
In view of the abovementioned, the Group remains cautiously optimistic of the market conditions in which the Group operates. The Group will continue to maintain a prudent cash management strategy, ensuring financial resilience amid the dynamic conditions of Singapore's construction sector. By carefully managing cash flow and optimising resource allocation, the Group aims to safeguard its operational stability while preserving the flexibility to seize emerging opportunities.
Dividend
In light of the Group's performance and in recognition of our shareholders' continued support, the Board of Directors is delighted to propose a dividend of 5.0 cents per ordinary share. The proposed dividend comprises a first and final dividend of 1.0 Singapore cents and a special dividend of 4.0 Singapore cents respectively, totalling S$5.4 million, subject to shareholders' approval at the forthcoming Annual General Meeting.
Acknowledgement and Appreciation
On behalf of the Board and Management, we extend our heartfelt thanks to our committed staff for their unwavering dedication, resilience, and perseverance in navigating the challenging business environment. Your combined efforts have played a pivotal role in Sin Heng's ongoing success.
Lastly, we wish to extend our appreciation to all stakeholders for their steadfast support and trust in us. A thank you to our shareholders for your continued patience and confidence in Sin Heng. With your loyal support, we are determined to strengthen our foundation and work towards a more resilient future.
Leong Wing KongIndependent Chairman |
Tan Ah LyeExecutive Director & CEO |