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Multi Ways Holdings Ltd

Multi Ways Holdings LtdMWGEarnings & Financial Report

NYSE · Industrials · Miscellaneous Manufacturing Industries

Multi Ways Holdings Limited is a Hong Kong-headquartered integrated logistics service provider, offering freight forwarding, warehousing management, customs brokerage, and end-to-end supply chain solutions. It mainly serves clients in manufacturing, retail and e-commerce segments, with core markets spanning Greater China, Southeast Asia and North America.

What changed in Multi Ways Holdings Ltd's 20-F — 2022 vs 2023

Top changes in Multi Ways Holdings Ltd's 2023 20-F

145 paragraphs added · 128 removed · 113 edited across 4 sections

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

75 edited+4 added−8 removed120 unchanged
Other Countries For the years ended December 31, 2022 and 2021 Revenues from other countries increased by approximately $4.0 million, which was primarily due to higher demand from new and recurring customers among various countries.
For the years ended December 31, 2022 and 2021 Revenues from other countries increased by approximately $4.0 million, which was primarily due to higher demand from new and recurring customers among various countries .
Cost of revenues For the years ended December 31, 2022 and 2021 During the financial years ended December 31, 2022 and 2021, our cost of revenues increased by approximately $4.6 million or approximately 19.0% to approximately $28.6 million for the financial year ended December 31, 2022 from approximately $24.0 million for the financial year ended December 31, 2021.
For the years ended December 31, 2022 and 2021 During the financial years ended December 31, 2022 and 2021, our cost of revenues increased by approximately $4.6 million or approximately 19.0% to approximately $28.6 million for the financial year ended December 31, 2022 from approximately $24.0 million for the financial year ended December 31, 2021.
For the years ended December 31, 2021 For the financial year ended December 31, 2021, our net cash provided by operating activities was approximately $5.6 million, which primarily consisted of our net income before tax of approximately $2.0 million, adding back (i) the non-cash depreciation of property, plant and equipment and right-of-use assets of approximately $1.6 million; (ii) inventories written down of approximately $1.5 million; and (iii) the increase in contract liabilities and provision of approximately $5.8 million, and partially offset by (a) the decrease in accounts receivable of approximately $1.2 million; (b) the decrease in inventories of approximately $2.8 million; and (c) the decrease in accounts and other payables of approximately $1.3 million.
For the years ended December 31, 202 1 For the financial year ended December 31, 2021, our net cash provided by operating activities was approximately $5.6 million, which primarily consisted of our net income before tax of approximately $2.0 million, adding back (i) the non-cash depreciation of property, plant and equipment and right-of-use assets of approximately $1.6 million; (ii) inventories written down of approximately $1.5 million; and (iii) the increase in contract liabilities and provision of approximately $5.8 million, and partially offset by (a) the decrease in accounts receivable of approximately $1.2 million; (b) the decrease in inventories of approximately $2.8 million; and (c) the decrease in accounts and other payables of approximately $1.3 million.
Amounts received as prepayment on future products are recorded as customer deposit and recognized as income when the product is shipped. ● Shipping and Handling Costs No shipping and handling costs are associated with the distribution of the products to the customers which are borne by the Company’s suppliers or distributors during the financial years ended December 31, 2022, 2021 and 2020. ● Sales and Marketing Sales and marketing expenses include payroll, employee benefits and other headcount-related expenses associated with sales and marketing personnel, and the costs of advertising, promotions, seminars, and other programs. ● Government Grant A government grant or subsidy is not recognized until there is reasonable assurance that: (a) the enterprise will comply with the conditions attached to the grant; and (b) the grant will be received.
Amounts received as prepayment on future products are recorded as customer deposit and recognized as income when the product is shipped. ● Shipping and Handling Costs No shipping and handling costs are associated with the distribution of the products to the customers which are borne by the Company’s suppliers or distributors during the financial years ended December 31, 2023, 2022 and 2021. ● Sales and Marketing Sales and marketing expenses include payroll, employee benefits and other headcount-related expenses associated with sales and marketing personnel, and the costs of advertising, promotions, seminars, and other programs. ● Government Grant A government grant or subsidy is not recognized until there is reasonable assurance that: (a) the enterprise will comply with the conditions attached to the grant; and (b) the grant will be received.
Our total gross profit increased during the financial years ended December 31, 2021 and 2020, which was generally due to the better profit margin through diversified purchasing networks from across various countries. 58 Selling and distribution expenses Our selling and distribution expenses mainly included promotion and marketing expenses and transportation expenses for inbound and outbound shipments.
Our total gross profit increased during the financial years ended December 31, 2022 and 2021, which was generally due to the better profit margin through diversified purchasing networks from across various countries. 58 Selling and distribution expenses Our selling and distribution expenses mainly included promotion and marketing expenses and transportation expenses for inbound and outbound shipments.
Income Tax Expenses For the years ended December 31, 2022 and 2021 During the financial years ended December 31, 2022 and 2021, our income tax expense was comprised of our current tax expense and deferred tax for the financial year.
For the years ended December 31, 2022 and 2021 During the financial years ended December 31, 2022 and 2021, our income tax expense was comprised of our current tax expense and deferred tax for the financial year.
At the end of December 31, 2022 and 2021, the majority of our finished goods were commonly available from the market, but our cost of procurement increased significantly due to the inflationary cost pressure, labor shortages, supply chain delay and disruption during the COVID-19 pandemic.
At the end of December 31, 2023 and 2022, the majority of our finished goods were commonly available from the market, but our cost of procurement increased significantly due to the inflationary cost pressure, labor shortages, supply chain delay and disruption during the COVID-19 pandemic.
For the financial years ended December 31, 2022, 2021 and 2020, the Company did not have any interest and penalties associated with tax positions. As of December 31, 2022, 2021 and 2020, the Company did not have any significant unrecognized uncertain tax positions. The Company is subject to tax in local and foreign jurisdiction.
For the financial years ended December 31, 2023, 2022 and 2021, the Company did not have any interest and penalties associated with tax positions. As of December 31, 2023, 2022 and 2021, the Company did not have any significant unrecognized uncertain tax positions. The Company is subject to tax in local and foreign jurisdiction.
We reported $0.04 million of net foreign exchange loss in 2021 and $0.03 million of net foreign exchange gain in 2020. 61 Jobs Support Scheme is an initiative introduced by the Singapore Government in February 2020 in response to the outbreak of COVID-19, and further enhanced in April, May and August 2020, to provide wage support to employers to help them retain local employees by co-funding 25% to 75% of the first S$4,600 of monthly salaries paid to each local employee in a 9-month period up to July 2020, and 10% to 50% of the same in the subsequent seven-month period from September 2020 to March 2021.
We reported the net foreign exchange loss of approximately $0.09 million in 2022 and approximately $0.04 million in 2021. 61 Jobs Support Scheme is an initiative introduced by the Singapore Government in February 2020 in response to the outbreak of COVID-19, and further enhanced in April, May and August 2020, to provide wage support to employers to help them retain local employees by co-funding 25% to 75% of the first S$4,600 of monthly salaries paid to each local employee in a 9-month period up to July 2020, and 10% to 50% of the same in the subsequent seven-month period from September 2020 to March 2021.
Revenue by geographical locations During the financial years ended December 31, 2022, 2021 and 2020, the customers for our equipment sales, rental and services were mainly located in Singapore and Australia.
Revenue by geographical locations During the financial years ended December 31, 2023, 2022 and 2021, the customers for our equipment sales, rental and services were mainly located in Singapore and Australia.
For the financial years ended December 31, 2022, 2021 and 2020, the Company has one reporting business segment. ● Related Parties The Company follows the ASC 850-10, Related Party for the identification of related parties and disclosure of related party transactions.
For the financial years ended December 31, 2023, 2022 and 2021, the Company has one reporting business segment. ● Related Parties The Company follows the ASC 850-10, Related Party for the identification of related parties and disclosure of related party transactions.
Significant accounting estimates in the period include the allowance for doubtful accounts on accounts and other receivables, impairment loss on inventories, assumptions used in assessing right-of-use assets, and impairment of long-lived assets, and deferred tax valuation allowance. The inputs into the management’s judgments and estimates consider the economic implications of COVID-19 on the Company’s critical and significant accounting estimates.
Significant accounting estimates in the period include the allowance for expected credit loss on accounts and other receivables, impairment loss on inventories, assumptions used in assessing right-of-use assets, and impairment of long-lived assets, and deferred tax valuation allowance. The inputs into the management’s judgments and estimates consider the economic implications of COVID-19 on the Company’s critical and significant accounting estimates.
Net Income For the years ended December 31, 2022 and 2021 As a result of the foregoing, our net income amounted to approximately $1.0 million and approximately $1.8 million for the financial years ended December 31, 2022 and 2021, respectively.
Net Income For the years ended December 31, 2023 and 2022 As a result of the foregoing, our net income amounted to approximately $1.8 million and approximately $1.0 million for the financial years ended December 31, 2023 and 2022, respectively.
For the years ended December 31, 2022 For the financial year ended December 31, 2022, our net cash used in financing activities of $0.2 million, which mainly consisted of bank loan repayment of $0.1 million and the repayment of lease liabilities of $0.1 million. 64 For the years ended December 31, 2021 For the financial year ended December 31, 2021, our net cash used in financing activities of approximately $4.8 million, which mainly consisted of bank loan repayment of approximately $3.7 million and the repayment of lease liabilities of approximately $1.0 million.
For the years ended December 31, 2021 For the financial year ended December 31, 2021, our net cash used in financing activities of approximately $4.8 million, which mainly consisted of bank loan repayment of approximately $3.7 million and repayment of lease liabilities of approximately $1.0 million.
If the inflationary pressures continue to increase to any material extent, we may pass along increased costs to our customers, which could result in loss of sales and loss of customers, and adversely impact our margins and results of operations. 76
In the event that the inflationary pressures continue to increase to any material extent, we may pass along increased costs to our customers, which could result in loss of sales and loss of customers, and adversely impact our margins and results of operations. 76
Our average payables turnover days remained relatively stable and amounted to approximately 58 days and approximately 67 days for the financial years ended December 31, 2022 and 2021, respectively. We did not have any material default in payment of accounts payable during the financial years ended December 31, 2022 and 2021.
Our average payables turnover days remained relatively stable and amounted to approximately 64 days and approximately 58 days for the financial years ended December 31, 2023 and 2022, respectively. We did not have any material default in payment of accounts payable during the financial years ended December 31, 2023 and 2022.
Cash flows from investing activities For the years ended December 31, 2022 For the financial year ended December 31, 2022, our net cash used in investing activities was approximately $1.1 million, primarily consisting of the purchases of property, plant and equipment of approximately $0.8 million and the purchases of financial assets available for sales of approximately 0.3 million.
For the years ended December 31, 202 2 For the financial year ended December 31, 2022, our net cash used in investing activities was approximately $1.1 million, primarily consisting of the purchases of property, plant and equipment of approximately $0.8 million and the purchases of financial assets available for sales of approximately $0.3 million.
Cash and cash equivalents are maintained with high credit quality institutions, the composition and maturities of which are regularly monitored by management. The Singapore Deposit Protection Board pays compensation up to a limit of S$75,000 (approximately $55,465) if the bank with which an individual/a company hold its eligible deposit fails.
Cash and cash equivalents are maintained with high credit quality institutions, the composition and maturities of which are regularly monitored by management. The Singapore Deposit Protection Board pays compensation up to a limit of S$75,000 (approximately US$56,330) if the bank with which an individual/a company hold its eligible deposit fails.
Singapore For the years ended December 31, 2022 and 2021 The revenue in Singapore increased by approximately $1.9 million for the financial year ended December 31, 2022, as compared to the corresponding financial year ended December 31, 2021, which was primarily attributable to the increase in demand from local customers.
Singapore For the years ended December 31, 2023 and 2022 The revenue in Singapore increased by approximately $1.6 million for the financial year ended December 31, 2023, as compared to the corresponding financial year ended December 31, 2022, which was primarily attributable to the increase in demand from local customers.
Rental accounted for $4.4 million in 2021 and $5.1 million in 2020, respectively and services revenue accounted for $2.9 million in 2021 and $2.7 million in 2020, respectively. 51 KEY FACTORS AFFECTING THE RESULTS OF OUR OPERATIONS Our financial condition and results of operations have been and will continue to be affected by a number of factors, many of which may be beyond our control, including those factors set out in the section headed “Risk Factors” in this annual report and those set out below. ● Demand from our major customer groups – Our aggregate sales generated from our top five customers were approximately 39.4% and approximately 43.6% of our revenue for the financial years ended December 31, 2022 and 2021, respectively.
Rental accounted for approximately $3.8 million in 2022 and approximately $4.4 million in 2021, respectively and services revenue accounted for approximately $2.4 million in 2022 and approximately $2.9 million in 2021, respectively. 51 KEY FACTORS AFFECTING THE RESULTS OF OUR OPERATIONS Our financial condition and results of operations have been and will continue to be affected by a number of factors, many of which may be beyond our control, including those factors set out in the section headed “Risk Factors” in this annual report and those set out below. ● Demand from our major customer groups – Our aggregate sales generated from our top five customers were approximately 35.8% and approximately 39.4% of our revenue for the financial years ended December 31, 2023 and 2022, respectively.
We may be unsuccessful in attracting new customers”. ● Fluctuations in the cost of our revenues – Finished goods are the largest part of our cost of revenue, representing approximately 74.6% and approximately 72.0% of our total cost of revenues for the financial years ended December 31, 2022 and 2021, respectively.
We may be unsuccessful in attracting new customers”. ● Fluctuations in the cost of our revenues - Finished goods are the largest part of our cost of revenue, where the cost of revenue are representing approximately 76.0% and approximately 74.6% of our total revenue for the financial years ended December 31, 2023 and 2022, respectively.
For the years ended December 31, 2021 and 2020 As a result of the foregoing, our net income for the financial year amounted to approximately $1.8 million and $1.3 million for the financial years ended December 31, 2021 and 2020, respectively. 62 5.B. Liquidity and Capital Resources.
For the years ended December 31, 2022 and 2021 As a result of the foregoing, our net income amounted to approximately $1.0 million and approximately $1.8 million for the financial years ended December 31, 2022 and 2021, respectively. 62 5.B. Liquidity and Capital Resources.
For the years ended December 31, 2021 For the financial year ended December 31, 2021, our net cash generated from investing activities was approximately $0.3 million, primarily consisting of the proceeds from disposal of property, plant and equipment.
For the years ended December 31, 202 1 For the financial year ended December 31, 2021, our net cash generated from investing activities was $0.3 million, primarily consisting of the proceeds from disposalof property, plant and equipment.
Results of Operations Data Financial Years Ended December 31 2022 2021 2020 S$’000 $’000 S$’000 $’000 S$’000 $’000 Revenues 52,927 38,359 45,155 33,406 39,513 29,886 Net income 1,419 1,028 2,435 1,801 1,744 1,319 Basic and diluted net income per Ordinary Share 0.06 0.04 0.10 0.07 0.07 0.05 Weighted average number of Ordinary Shares outstanding (‘000) 24,800 24,800 24,800 24,800 24,800 24,800 (1) Calculated at the rate of S$1.3798 (as relates to December 31, 2022), S$1.3517 (as relates to December 31, 2021), and S$1.3221 (as relates to December 31, 2020), as set forth as the Company’s internal exchange rate . 53 Revenue As set forth in the following table, during the financial years ended December 31, 2022, 2021 and 2020, our revenue was derived from the sale of heavy construction equipment, rental and services in our equipment sales, rental and services serving the infrastructure, building construction, mining, offshore and marine, and oil and gas industries: Financial Years Ended December 31, 2022 2021 2020 $’000 % $’000 % $’000 % Sales of heavy construction equipment, rental and services Equipment Sales 32,202 83.9 26,095 78.1 22,045 73.8 Rental 3,803 9.9 4,419 13.2 5,095 17.0 Services (1) 2,354 6.2 2,892 8.7 2,746 9.2 Total 38,359 100.0 33,406 100.0 29,886 100.0 (1) Services mean refurbishment and servicing, troubleshooting and repair, transportation and erection, crane operation and machinery cleaning.
Results of Operations Data Financial Years Ended December 31 2023 2022 2021 S$’000 $’000 S$’000 $’000 S$’000 $’000 Revenues 48,074 36,016 52,927 38,359 45,155 33,406 Net income 2,327 1,739 1,419 1,028 2,435 1,801 Basic and diluted net income per Ordinary Share 0.07 0.06 0.06 0.04 0.10 0.07 Weighted average number of Ordinary Shares outstanding (‘000) 29,284 29,284 24,800 24,800 24,800 24,800 (1) Calculated at the rate of S$1.3348 (as relates to December 31, 2023), S$1.3798 (as relates to December 31, 2022), and S$1.3517 (as relates to December 31, 2021), as set forth as the Company’s internal exchange rate . 53 Revenue As set forth in the following table, during the financial years ended December 31, 2023, 2022 and 2021, our revenue was derived from the sale of heavy construction equipment, rental and services in our equipment sales, rental and services serving the infrastructure, building construction, mining, offshore and marine, and oil and gas industries: Financial Years Ended December 31, 2023 2022 2021 $’000 % $’000 % $’000 % Sales of heavy construction equipment, rental and services Equipment Sales 24,695 68.6 32,202 83.9 26,095 78.1 Rental 4,953 13.8 3,803 9.9 4,419 13.2 Services (1) 6,368 17.6 2,354 6.2 2,892 8.7 Total 36,016 100.0 38,359 100.0 33,406 100.0 (1) Services mean refurbishment and servicing, troubleshooting and repair, transportation and erection, crane operation and machinery cleaning.
Our overall gross profit margins were approximately 25.4% and approximately 28.0% for the financial years ended December 31, 2022 and 2021, respectively. Our total gross profit increased during the financial years ended December 31, 2022 and 2021, which was generally due to the better profit margin through diversified purchasing networks from across various countries.
Our overall gross profit margins were approximately 24.0% and approximately 25.4% for the financial years ended December 31, 2023 and 2022, respectively. Our total gross profit decreased during the financial years ended December 31, 2023 and 2022, which was generally due to the lower profit margin through diversified purchasing networks from across various countries.
For the years ended December 31, 2022 and 2021 Interest expenses remained stable at approximately $0.7 million for the financial years ended December 31, 2022 and 2021 from our bank loans and financing facilities. We reported the net foreign exchange loss of approximately $0.09 million in 2022 and approximately $0.04 million in 2021.
For the years ended December 31, 2023 and 2022 Interest expenses were approximately $1.1 million and $0.7 million for the financial years ended December 31, 2023 and 2022 from our bank loans and financing facilities. We reported the net foreign exchange loss of approximately $0.04 million in 2023 and approximately $0.09 million in 2022.
The following table sets forth the breakdown of our selling and distribution expenses for the financial years ended December 31, 2022, 2021 and 2020: Financial Years Ended December 31, 2022 2021 2020 $’000 % $’000 % $’000 % Advertisement and promotion 26 1.7 24 2.2 29 2.5 Freight costs 1,343 89.4 983 88.2 983 85.3 Transportation and travelling 133 8.9 107 9.6 141 12.2 Total 1,502 100.0 1,114 100.0 1,153 100.0 For the years ended December 31, 2022 and 2021 The selling and distribution expenses were approximately $1.5 million and approximately $1.1 million for the financial years ended December 31, 2022 and 2021, respectively, representing approximately 3.9% and approximately 3.3% of our total revenue for the corresponding financial years.
The following table sets forth the breakdown of our selling and distribution expenses for the financial years ended December 31, 2023, 2022 and 2021: Financial Years Ended December 31, 2023 2022 2021 $’000 % $’000 % $’000 % Advertisement and promotion 15 1.6 26 1.7 24 2.2 Freight costs 645 67.8 1,343 89.4 983 88.2 Transportation and travelling 292 30.6 133 8.9 107 9.6 Total 952 100.0 1,502 100.0 1,114 100.0 For the years ended December 31, 2023 and 2022 The selling and distribution expenses were approximately $1.0 million and approximately $1.5 million for the financial years ended December 31, 2023 and 2022, respectively, representing approximately 2.6% and approximately 3.9% of our total revenue for the corresponding financial years.
In particular, sales to our largest customer amounted to $9.6 million, representing 28.8% of our revenue for the year ended December 31, 2021, and sales to our largest customer amounted to $2.3 million, representing 7.7% of our revenue for the year ended December 31, 2020.
In particular, sales to our largest customer amounted to approximately $7.9 million, representing 20.6% of our revenue for the year ended December 31, 2022, and sales to our largest customer amounted to approximately $9.6 million, representing approximately 28.8% of our revenue for the year ended December 31, 2021.
Bank Indebtedness Terms of Annual interest As of December 31, Bank Borrowings repayments rate 2022 2021 $’000 $’000 Term loans 2 to 5 years 2.7% - 3.5 % 2,502 3,844 Trust receipts Within 12 months 2.85 % 6,826 5,278 Bank overdraft Within 12 months 5.25 % 281 - Mortgage loan 10 years 2.77 % 2,428 3,204 Total 12,037 12,326 As of December 31, 2022 and 2021, bank borrowings were obtained from several financial institutions in Singapore, which bear annual interest at a fixed rate from 2.7% to 3.5% and are repayable in 12 months to 10 years, and bank overdraft at 5.25% from financial institution in Singapore. 67 The Company’s bank borrowings currently are guaranteed by personal guarantees from Mr.
Bank Indebtedness Terms of Annual interest As of December 31, Bank Borrowings repayments rate 2023 2022 $’000 $’000 Term loans 2 to 5 years 2.5% - 3.5 % 1,521 2,502 Trust receipts Within 12 months 6.34 % 3,498 6,826 Bank overdraft Within 12 months - % - 281 Mortgage loan 10 years - % - 2,428 Total 5,019 12,037 As of December 31, 2023 and 2022, bank borrowings were obtained from several financial institutions in Singapore, which bear annual interest at a fixed rate from 2.5% to 3.5% and are repayable in 12 months to 5 years. 67 The Company’s bank borrowings currently are guaranteed by personal guarantees from Mr.
For the years ended December 31, 2021 and 2020 The revenue in Singapore decreased by $7.0 million for the financial year ended December 31, 2021, as compared to the corresponding financial year ended December 31, 2020, was primarily attributable to the decrease in demand from local customers. 56 Australia For the years ended December 31, 2022 and 2021 The decrease in revenue in Australia by approximately $1.0 million for the financial year ended December 31, 2022, as compared to the corresponding financial year ended December 31, 2021, which was primarily attributable to the decrease sale orders by a major customer in Australia of approximately $1.0 million.
For the years ended December 31, 2022 and 2021 The decrease in revenue in Australia by approximately $1.0 million for the financial year ended December 31, 2022, as compared to the corresponding financial year ended December 31, 2021, which was primarily attributable to the decrease sale orders by a major customer in Australia of approximately $1.0 million.
For the years ended December 31, 2021 and 2020 Our total gross profit amounted to approximately $9.4 million and $6.8 million for the financial years ended December 31, 2021 and 2020, respectively. Our overall gross profit margins were approximately 28.0 % and 22.9 % for the financial years ended December 31, 2021 and 2020, respectively.
For the years ended December 31, 2022 and 2021 Our total gross profit amounted to approximately $9.7 million and approximately $9.4 million for the financial years ended December 31, 2022 and 2021, respectively. Our overall gross profit margins were approximately 25.4% and approximately 28.0% for the financial years ended December 31, 2022 and 2021, respectively.
The following table sets forth the ageing analysis of our accounts receivable, net, based on the invoiced date as of the dates mentioned below: As of December 31, 2022 2021 $’000 $’000 Within 30 days 867 1,335 Between 31 and 60 days 1,990 540 Between 61 and 90 days 1,381 489 Between 91 and 120 days 332 265 Over 120 days 3,451 3,063 Total 8,021 5,692 65 Movements in the provision for impairment of accounts receivable are as follows: As of December 31, 2022 2021 $’000 $’000 Opening balance 83 3,837 Additions (write-off) of loss allowance 201 (3,754 ) Total 284 83 We have a policy for determining the allowance for impairment based on the evaluation of collectability and aging analysis of accounts receivable and on management’s judgement, including the change in credit quality, the past collection history of each customer and the current market condition.
The following table sets forth the ageing analysis of our accounts receivable, net, based on the invoiced date as of the dates mentioned below: As of December 31, 2023 2022 $’000 $’000 Within 30 days 1,521 867 Between 31 and 60 days 779 1,990 Between 61 and 90 days 581 1,381 Between 91 and 120 days 661 332 Over 120 days 1,799 3,451 Total 5,341 8,021 65 Movements in the allowance for impairment of accounts receivable are as follows: As of December 31, 2023 2022 $’000 $’000 Opening balance 284 83 Provision for impairment of receivables 110 201 Total 394 284 We have a policy for determining the allowance for impairment based on the evaluation of collectability and aging analysis of accounts receivable and on management’s judgement, including the change in credit quality, the past collection history of each customer and the current market condition.
For the years ended December 31, 2021 and 2020 Administrative expenses were approximately $6.6 million and $6.3 million for the financial years ended December 31, 2021 and 2020, respectively, representing 19.8 % and 21.0 % of our total revenue for the corresponding financial years.
For the years ended December 31, 2022 and 2021 Administrative expenses were approximately $6.7 million and approximately $6.6 million for the financial years ended December 31, 2022 and 2021, respectively, representing approximately 17.6% and approximately 19.8% of our total revenue for the corresponding financial years.
In particular, sales to our largest customer amounted to approximately $7.9 million, representing approximately 20.6% of our revenue for the financial year ended December 31, 2022. Our aggregate sales generated from our top five customers were 43.6% and 26.6% of our revenue for the financial years ended December 31, 2021 and 2020, respectively.
In particular, sales to our largest customer amounted to approximately $4.4 million, representing approximately 12.1% of our revenue for the financial year ended December 31, 2023. Our aggregate sales generated from our top five customers were approximately 39.4% and approximately 43.6% of our revenue for the financial years ended December 31, 2022 and 2021, respectively.
The following table sets out a breakdown of our revenue by geographic location of our customers for the financial years ended December 31, 2022, 2021 and 2020: Financial Years Ended December 31, 2022 2021 2020 $’000 % $’000 % $’000 % Singapore Equipment Sales 10,053 63.6 7,048 50.8 13,888 66.5 Rental 3,803 24.1 4,412 31.8 5,037 24.1 Services 1,955 12.3 2,424 17.4 1,949 9.4 Total 15,811 100.0 13,884 100.0 20,874 100.0 55 Financial Years Ended December 31, 2022 2021 2020 $’000 % $’000 % $’000 % Australia Equipment Sales 9,035 99.8 10,041 99.8 151 90.4 Services 21 0.2 23 0.2 16 9.6 Total 9,056 100.0 10,064 100.0 167 100.0 Financial Years Ended December 31, 2022 2021 2020 $’000 % $’000 % $’000 % Other Countries (1) , individually less than 10% Equipment Sales 13,114 97.2 9,006 95.2 8,006 90.5 Rental * * 7 0.1 58 0.7 Services 378 2.8 445 4.7 781 8.8 Total 13,492 100.0 9,458 100.0 8,845 100.0 (1) “Other Countries” means Maldives, Indonesia, Thailand, Vietnam, Philippines, and Middle East.
The following table sets out a breakdown of our revenue by geographic location of our customers for the financial years ended December 31, 2023, 2022 and 2021: Financial Years Ended December 31, 2023 2022 2021 $’000 % $’000 % $’000 % Singapore Equipment Sales 10,467 60.1 10,053 63.6 7,048 50.8 Rental 4,953 28.4 3,803 24.1 4,412 31.8 Services 2,010 11.5 1,955 12.3 2,424 17.4 Total 17,430 100.0 15,811 100.0 13,884 100.0 55 Financial Years Ended December 31, 2023 2022 2021 $’000 % $’000 % $’000 % Australia Equipment Sales 6,728 99.9 9,035 99.8 10,041 99.8 Services 9 0.1 21 0.2 23 0.2 Total 6,737 100.0 9,056 100.0 10,064 100.0 Financial Years Ended December 31, 2023 2022 2021 $’000 % $’000 % $’000 % Other Countries (1) , individually less than 10% Equipment Sales 7,500 63.3 13,114 97.2 9,006 95.2 Rental * * * * 7 0.1 Services 4,349 36.7 378 2.8 445 4.7 Total 11,849 100.0 13,492 100.0 9,458 100.0 (1) “Other Countries” means Maldives, Indonesia, Thailand, Vietnam, Philippines, and Middle East.
For the years ended December 31, 2021 and 2020 During the financial years ended December 31, 2021 and 2020, our income tax expense was comprised of our current tax expense and deferred tax for the financial year.
Income Tax Expenses (Benefit) For the years ended December 31, 2023 and 2022 During the financial years ended December 31, 2023 and 2022, our income tax expense was comprised of our current tax expense and deferred tax for the financial year.
We have limited credit available from our major vendors and are required to prepay the majority of our inventory purchases, which further constrains our cash liquidity. 66 We had the following contractual obligations and lease commitments as of December 31, 2022: Contractual Obligations Total Less than 1 year 1-3 years 3-5 years More than 5 years $ ’000 $ ’000 $ ’000 $ ’000 $ ’000 Operating lease commitment 5,598 3,484 1,191 200 723 Bank loan repayment 12,037 8,862 3,175 - - Total obligations 17,635 12,346 4,366 200 723 We believe that we have sufficient working capital for our requirements for at least the next 12 months from the date of this annual report, absent unforeseen circumstances, taking into account the financial resources presently available to us, including cash and cash equivalents on hand, cash flows from our operations and the estimated net proceeds from this offering.
We have limited credit available from our major vendors and are required to prepay the majority of our inventory purchases, which further constrains our cash liquidity. 66 We had the following contractual obligations and lease commitments as of December 31, 2023: Contractual Obligations Total Less than 1 year 1-3 years 3-5 years More than 5 years $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 Operating lease commitment 7,747 3,482 4,265 - - Bank loan repayment 5,019 4,588 431 - - Total obligations 12,766 8,070 4,696 - - We believe that we have sufficient working capital for our requirements for at least the next 12 months from the date of this annual report, absent unforeseen circumstances, taking into account the financial resources presently available to us, including cash and cash equivalents on hand and cash flows from our operations.
Accounts receivable, net For the years ended December 31, 2022 and 2021 Our net accounts receivable increased from approximately $5.7 million as of December 31, 2021 to approximately $8.0 million as of December 31, 2022. The increase was primarily attributable to an overall increase in sales during the financial year ended December 31, 2022.
Accounts receivable, net For the years ended December 31, 2023 and 2022 Our net accounts receivable decreased from approximately $8.0 million as of December 31, 2022 to approximately $5.3 million as of December 31, 2023. The decrease was primarily attributable to an overall decrease in sales and improved in credit control during the financial year ended December 31, 2023.
For the years ended December 31, 2021 and 2020 Our selling and distribution expenses remained relatively stable at approximately $1.1 million and $1.2 million for the financial years ended December 31, 2021 and 2020, respectively, representing 3.3 % and 4.0 % of our total revenue for the corresponding financial years. 59 Administrative expenses The following table sets forth the breakdown of our administrative expenses for the financial years ended December 31, 2022, 2021 and 2020: Financial Years Ended December 31, 2022 2021 2020 $’000 % $’000 % $’000 % Depreciation of plant and equipment 800 11.9 823 12.5 982 15.6 Depreciation of right-of-use assets 828 12.3 775 11.7 691 11.0 Salaries and related costs 3,916 58.0 4,138 62.6 3,526 56.0 Repair and maintenance 42 0.6 47 0.7 179 2.9 Upkeep of motor vehicles 214 3.2 220 3.3 164 2.6 Professional fees 115 1.7 114 1.7 122 1.9 Others 830 12.3 492 7.5 630 10.0 Total 6,745 100.0 6,609 100.0 6,294 100.0 For the years ended December 31, 2022 and 2021 Administrative expenses were approximately $6.7 million and approximately $6.6 million for the financial years ended December 31, 2022 and 2021, respectively, representing approximately 17.6% and approximately 19.8% of our total revenue for the corresponding financial years.
For the years ended December 31, 2022 and 2021 The selling and distribution expenses by approximately $1.5 million and approximately $1.1 million for the financial years ended December 31, 2022 and 2021, respectively, representing approximately 3.9% and approximately 3.3% of our total revenue for the corresponding financial years. 59 Administrative expenses The following table sets forth the breakdown of our administrative expenses for the financial years ended December 31, 2023, 2022 and 2021: Financial Years Ended December 31, 2023 2022 2021 $’000 % $’000 % $’000 % Depreciation of plant and equipment 907 8.4 800 11.9 823 12.5 Depreciation of right-of-use assets 866 8.0 828 12.3 775 11.7 Salaries and related costs 4,793 44.5 3,916 58.0 4,138 62.6 Repair and maintenance 71 0.7 42 0.6 47 0.7 Upkeep of motor vehicles 199 1.8 214 3.2 220 3.3 Professional fees 3,047 28.3 115 1.7 114 1.7 Others 893 8.3 830 12.3 492 7.5 Total 10,776 100.0 6,745 100.0 6,609 100.0 For the years ended December 31, 2023 and 2022 Administrative expenses were approximately $10.8 million and approximately $6.7 million for the financial years ended December 31, 2023 and 2022, respectively, representing approximately 29.9% and approximately 17.6% of our total revenue for the corresponding financial years.
Financial Years Ended December 31, 2022 2021 2020 $’000 % $’000 % $’000 % Equipment Sales 25,744 90.0 20,604 85.7 19,654 85.3 Rental 597 2.0 684 2.8 1,122 4.9 Services 2,276 8.0 2,761 11.5 2,268 9.8 Total 28,617 100.0 24,049 100.0 23,044 100.0 57 Gross profit and gross profit margin The table below sets forth our Group’s gross profit and gross profit margin by business sector during the financial years ended December 31, 2022, 2021 and 2020: Financial Years Ended December 31, 2022 2021 2020 Gross Profit $’000 Gross Margin % Gross Profit $’000 Gross Margin % Gross Profit $’000 Gross Margin % Equipment Sales 6,458 20.1 5,491 21.0 2,391 10.9 Rental 3,206 84.3 3,735 84.5 3,973 78.0 Services 78 3.3 131 4.5 478 17.4 Total 9,742 25.4 9,357 28.0 6,842 22.9 For the years ended December 31, 2022 and 2021 Our total gross profit amounted to approximately $9.7 million and approximately $9.4 million for the financial years ended December 31, 2022 and 2021, respectively.
Financial Years Ended December 31, 2023 2022 2021 $’000 % $’000 % $’000 % Equipment Sales 24,203 88.4 25,744 90.0 20,604 85.7 Rental 558 2.0 597 2.0 684 2.8 Services 2,605 9.6 2,276 8.0 2,761 11.5 Total 27,366 100.00 28,617 100.0 24,049 100.0 57 Gross profit and gross profit margin The table below sets forth our Group’s gross profit and gross profit margin by business sector during the financial years ended December 31, 2023, 2022 and 2021: Financial Years Ended December 31, 2023 2022 2021 Gross Profit $’000 Gross Margin % Gross Profit $’000 Gross Margin % Gross Profit $’000 Gross Margin % Equipment Sales 491 2.0 6,458 20.1 5,491 21.0 Rental 4,394 88.7 3,206 84.3 3,735 84.5 Services 3,765 59.1 78 3.3 131 4.5 Total 8,650 24.0 9,742 25.4 9,357 28.0 For the years ended December 31, 2023 and 2022 Our total gross profit amounted to approximately $8.7 million and approximately $9.7 million for the financial years ended December 31, 2023 and 2022, respectively.
In addition, we have not entered into any derivative contracts that are indexed to our own shares and classified as shareholders’ equity, or that are not reflected in our consolidated financial statements.
We have not entered into any financial guarantees or other commitments to guarantee the payment obligations of any third parties. In addition, we have not entered into any derivative contracts that are indexed to our own shares and classified as shareholders’ equity, or that are not reflected in our consolidated financial statements.
Staff costs mainly represented the salaries, employee benefits and retirement benefit costs to our employees and directors’ remuneration. The staff costs of our Group were approximately $4.1 million and $3.5 million for the financial years ended December 31, 2021 and 2020.
Staff costs mainly represented the salaries, employee benefits and retirement benefit costs to our employees, directors’ remuneration and directors’ fees. The staff costs of our Group were at approximately $4.8 million and approximately $3.9 million for the financial years ended December 31, 2023 and 2022, respectively.
For the financial years ended December 31, 2022, and 2021, our Jobs Support Scheme income amounted to approximately $0.1 million and approximately $0.1 million, respectively.
Our Jobs Support Scheme income amounted $0.1 million for both the financial year ended December 31, 2022 and 2021 accordingly.
Rental accounted for approximately $3.8 million in 2022 and approximately $4.4 million in 2021, respectively and services revenue accounted for approximately $2.4 million in 2022 and approximately $2.9 million in 2021, respectively.
Rental accounted for approximately $5.0 million in 2023 and approximately $3.8 million in 2022, respectively and services revenue accounted for approximately $6.4 million in 2023 and approximately $2.4 million in 2022, respectively.
For the financial year ended December 31, 2022, our income tax increased to approximately $0.5 million and our effective tax rate was 33.4% due to tax refund from previous years. Such income tax decrease was generally in line with the increase in our profit for the financial year.
For the financial year ended December 31, 2022, our income tax increased to approximately $0.5 million and our effective tax rate was 34% due to tax refund from previous years.
For the financial year ended December 31, 2021, our income tax increased to approximately $0.2 million and our effective tax rate was 11.3% due to tax refund from previous years. Such income tax decrease was generally in line with the increase in our profit for the financial year.
For the financial year ended December 31, 2022, our income tax increased to approximately $0.5 million and our effective tax rate was 33.4% due to tax refund from previous years. For the financial year ended December 31, 2021, our income tax increased to approximately $0.2 million and our effective tax rate was 11.3% due to tax refund from previous years.
Additionally, due to measures such as travel restrictions, and lockdowns of logistics facilities, there has also been experiences of longer delivery times. Additionally, we experienced an increase in freight and handling costs.
Additionally, due to measures such as travel restrictions, and lockdowns of logistics facilities, there has also been experiences of longer delivery times. Additionally, we experienced an increase in freight and handling costs. We have been and are continuing to closely monitor the impact of COVID-19 on our business and operations.
Miscellaneous expenses were mainly comprised of insurance expenses, office supplies, legal and professional fees, repair and maintenance, vehicles upkeep and other miscellaneous expenses. 60 Other Income, Net The following table sets forth the breakdown of our other income (expense) for the financial years ended December 31, 2022, 2021 and 2020: Financial Years Ended December 31, 2022 2021 2020 $’000 $’000 $’000 Other expenses - - (15 ) Gain on disposal of plant and equipment 2 305 237 Interest income * 19 14 Interest expenses (748 ) (716 ) (858 ) Government grants 81 109 582 Dividend income 7 - 1,030 Foreign exchange (loss) gain (93 ) (44 ) 32 Others 813 724 905 Total 62 397 1,927 * These figures are immaterial.
Miscellaneous expenses were mainly comprised of insurance expenses, office supplies, bad debts provision, insurance, entertainment, property tax, vehicles upkeep and other miscellaneous expenses. 60 Other Income, Net The following table sets forth the breakdown of our other income (expense) for the financial years ended December 31, 2023, 2022 and 2021: Financial Years Ended December 31, 2023 2022 2021 $’000 $’000 $’000 Gain on disposal of plant and equipment 5,161 2 305 Interest income 57 * 19 Interest expenses (1,105 ) (748 ) (716 ) Government grants 22 81 109 Dividend income 16 7 - Foreign exchange (loss) gain (43 ) (93 ) (44 ) Others 656 813 724 Total 4,764 62 397 * These figures are immaterial.
For the same financial years, our revenue generated from customers located in other countries accounted for approximately 28.3 % and 29.6 % of our total revenue, respectively. For the financial years ended December 31, 2021 and 2020, our net income amounted to approximately $1.8 million and $1.3 million, respectively.
For the same financial years, our revenue generated from customers located in other countries accounted for approximately 32.9% and approximately 35.2% of our total revenue, respectively. For the financial years ended December 31, 2023 and 2022, our net income amounted to approximately $1.7 million and approximately $1.0 million, respectively.
Such increase was mainly attributable to the increase demand in our Equipment Sales of approximately $1.0 million and Services of approximately $0.4 million in 2021, offset by a decrease in Rental of approximately $0.4 million.
Such decrease was mainly attributable to the decrease cost of revenues for the demand in our equipment sales of approximately $1.5 million and offset the increase in Services of approximately $0.3 million in 2023.
For the years ended December 31, 2022 and 2021 Our total revenue increased by approximately $5.0 million or approximately 15.0% to approximately $38.4 million for the year ended December 31, 2022 from approximately $33.4 million for the financial year ended December 31, 2021.
For the years ended December 31, 2023 and 2022 Our total revenue decreased by approximately $2.3 million or approximately 6.1% to approximately $36.0 million for the year ended December 31, 2023 from approximately $38.4 million for the financial year ended December 31, 2022.
Depreciation expense is charged on our property, plant and equipment which includes (i) leasehold buildings; (ii) right-of-use assets; (iii) motor vehicles; and (iv) office equipment, and furniture and fittings. Miscellaneous expenses were mainly comprised of insurance expenses, office supplies, bad debts provision, insurance, entertainment, property tax, vehicles upkeep and other miscellaneous expenses.
Depreciation expense is charged on our property, plant and equipment which includes (i) leasehold buildings; (ii) right-of-use assets; (iii) motor vehicles; and (iv) office equipment, and furniture and fittings. Professional fees were mainly comprised of IPO expenses, consultancy advisory, legal fees and audit fees.
Cash flows The following table summarizes our cash flows for the financial years ended December 31, 2022, 2021 and 2020: Financial Years Ended December 31, 2022 2021 2020 $’000 $’000 $’000 Cash and cash equivalents as at beginning of the year 1,533 325 133 Net cash provided by operating activities 833 5,630 1,656 Net cash (used in) generated from investing activities (1,140 ) 343 (565 ) Net cash used in financing activities (219 ) (4,758 ) (899 ) Effect on exchange rate change on cash and cash equivalents (4 ) (7 ) - Net change in cash and cash equivalents (530 ) 1,208 192 Cash and cash equivalents as at end of the year 1,003 1,533 325 63 Cash flows from operating activities For the years ended December 31, 2022 For the financial year ended December 31, 2022, our net cash provided by operating activities was approximately $0.8 million, which primarily consisted of our net income before tax of approximately $1.6 million, adding back (i) the non-cash depreciation of property, plant and equipment and right-of-use assets of approximately $1.6 million; (ii) the provision of impairment for trade receivables approximately $0.2 million, (iii) the decrease in inventories of approximately $0.9 million; and (iv) the increase in accounts and other payables of approximately $1.9 million, and partially offset by (a) the decrease in accounts receivable of approximately $0.9 million and (d) the decrease in contract liabilities of approximately $4.4 million.
Cash flows The following table summarizes our cash flows for the financial years ended December 31, 2023, 2022 and 2021: Financial Years Ended December 31, 2023 2022 2021 $’000 $’000 $’000 Cash and cash equivalents as at beginning of the year 1,003 1,533 325 Net cash provided by operating activities 55 910 5,630 Net cash (used in) generated from investing activities 6,810 (1,140 ) 343 Net cash used in financing activities (875 ) (296 ) (4,758 ) Effect on exchange rate change on cash and cash equivalents 80 (4 ) (7 ) Net change in cash and cash equivalents 6,070 (530 ) 1,208 Cash and cash equivalents as at end of the year 7,073 1,003 1,533 63 Cash flows from operating activities For the years ended December 31, 202 3 For the financial year ended December 31, 2023, our net cash provided by operating activities was approximately $0.06 million, which primarily consisted of our net income of approximately $1.7 million, adding back (i) the non-cash depreciation of property, plant and equipment and right-of-use assets of approximately $1.8 million; (ii) the reverse of impairment for trade receivables approximately $0.1 million; (iii) the written down in inventories of approximately $0.5 million; (iv) the increase in accounts receivable of approximately $1.8 million (v) the increase of inventories of approximately $3.6 million; (vi) the written off of advance to suppliers of approximately $1.0 million; (vii) the increase of loss on revaluation of quoted share of approximately $0.02 million; and (viii) the decrease of other current assets of approximately $0.4 million and partially offset by (a) the gain on disposal of property and equipment and early termination of approximately $5.2 million; (b) the decrease in customer deposit of approximately $2.8 million, (c) the decrease of account payables of approximately $2.1 million, and (d) the decrease of income tax payable of approximately $0.7 million.
For the years ended December 31, 2021 and 2020 Revenues from other countries increased by $0.6 million, primarily due to higher demand from new and recurring customers among various countries.
Other Countries For the years ended December 31, 2023 and 2022 Revenues from other countries decreased by approximately $1.6 million, which was primarily due to lower demand from new and recurring customers among various countries.
For the years ended December 31, 2021 and 2020 During the financial years ended December 31, 2021 and 2020, our cost of revenues increased by approximately $1.0 million or 4.4 % to approximately $24.0 million for the financial year ended December 31, 2021 from approximately $23.0 million for the financial year ended December 31, 2020.
Cost of revenues For the years ended December 31, 2023 and 2022 During the financial years ended December 31, 2023 and 2022, our cost of revenues decreased by approximately $1.3 million or approximately 4.4% to approximately $27.4 million for the financial year ended December 31, 2023 from approximately $28.6 million for the financial year ended December 31, 2022.
For the financial years ended December 31, 2021 and 2020, approximately 41.6 % and 69.8 % of our total revenue, respectively, was generated from customers located in Singapore and approximately 30.1 % and 0.6 % of our total revenue, respectively, was generated from customers located in Australia.
For the financial years ended December 31, 2023 and 2022, approximately 48.4% and approximately 41.2% of our total revenue, respectively, was generated from customers located in Singapore and approximately 18.7% and approximately 23.6% of our total revenue, respectively, was generated from customers located in Australia.
Accounts payable For the years ended December 31, 2022 and 2021 The general credit terms from our major suppliers are payment within 30 days. Our accounts payable remained unchanged at approximately $4.8 million and approximately $4.4 million as of December 31, 2022 and 2021 respectively. We generally pay our accounts payable within 30 days of receipt of invoice.
Our accounts payable remained unchanged at approximately $4.8 million as of 31 December, 2022 and approximately $4.8 million as of December 31, 2023. We generally pay our accounts payable within 30 days of receipt of invoice.
For the years ended December 31, 2020 For the financial year ended December 31, 2020, our net cash generated from operating activities was approximately $1.7 million, which primarily reflected our net income before tax of approximately $1.3 million, as positively adjusted by (i) the non-cash depreciation of property, plant and equipment and right-of use assets of approximately $1.7 million, (ii) the decrease in accounts receivable of approximately $4.7 million; (iii) inventories written down of approximately $2.5 million which was partially offset by (a) the increase in inventories of approximately $5.7 million; (b) the decrease in accounts payable and other payables, contract liabilities and provision of approximately $2.4 million; (c) gain on disposal of property, plant and equipment and (d) reversal of impairment for accounts receivable.
For the years ended December 31, 202 2 For the financial year ended December 31, 2022, our net cash provided by operating activities was approximately $0.9 million, which primarily consisted of our net income of approximately $1.6 million, adding back (i) the non-cash depreciation of property, plant and equipment and right-of-use assets of approximately $1.6 million; (ii) the provision of impairment for trade receivables approximately $0.2 million, (iii) the decrease in inventories of approximately $0.9 million; and (iv) the increase in accounts and other payables of approximately $2.0 million, and partially offset by (a) the decrease in accounts receivable of approximately $0.9 million and (b) the decrease in contract liabilities of approximately $4.4 million.
Balance Sheet Data: As of December 31, 2022 2021 S$’000 $’000 S$’000 $’000 Cash and cash equivalents 1,376 1,003 2,072 1,533 Working capital 3,960 2,886 6,008 4,445 Total assets 72,431 52,786 73,823 54,615 Total liabilities 63,770 46,474 66,580 49,257 Total shareholders’ equity 8,591 6,262 7,243 5,358 Non-controlling interest 70 50 - - (1) Calculated at the rate of S$1.3722 as related to December 31, 2022 and S$1.3517 as relates to December 31, 2021, as set forth as the Company’s internal exchange rate .
Balance Sheet Data: As of December 31, 2023 2022 S$’000 $’000 S$’000 $’000 Cash and cash equivalents 9,417 7,073 1,376 1,003 Working capital 27,819 20,903 3,960 2,886 Total assets 77,212 58,001 72,431 52,786 Total liabilities 48,163 36,174 63,770 46,474 Total shareholders’ equity 29,049 21,827 8,591 6,312 Non-controlling interest - - 70 50 (1) Calculated at the rate of S$1.3314 as related to December 31, 2023 and S$1.3722 as relates to December 31, 2022, as set forth as the Company’s internal exchange rate .
For accounts receivable, the Company determines, on a continuing basis, the allowance for doubtful accounts is based on the estimated realizable value. The Company identifies credit risk on a customer-by-customer basis. The information is monitored regularly by management.
The Company identifies credit risk on a customer-by-customer basis. The information is monitored regularly by management.
We may be unable to pass all or any of these higher costs on to our customers, which could have a material adverse effect on our profitability. The prices at which we purchase such finished goods are determined by the demand and supply forces in this industry, as well as our bargaining power with our suppliers.
The prices at which we purchase such finished goods are determined by the demand and supply forces in this industry, as well as our bargaining power with our suppliers.
For the years ended December 31, 2021 and 2020 For the financial years ended December 31, 2021 and 2020, our net revenue amounted to $33.4 million and $29.9 million, respectively, of which equipment sales accounted for $26.1 million in 2021 and $22.1 million in 2020, respectively.
For the years ended December 31, 2023 and 2022 For the financial years ended December 31, 2023 and 2022, our net revenue amounted to approximately $36.0 million and approximately $38.4 million, respectively, of which equipment sales accounted for approximately $24.7 million in 2023 and $32.2 million in 2022, respectively.
Such decrease was mainly caused by the increase in gross profit margin was partially offset by the increase in selling & distribution expenses of approximately $0.4 million, administrative expenses of approximately $0.1 million and incomes tax of approximately $0.3 million. 54 For the years ended December 31, 2021 and 2020 Our total revenue increased by approximately $3.5 million or 11.8 % to approximately $33.4 million for the year ended December 31, 2021 from approximately $29.9 million for the financial year ended December 31, 2020.
Such decrease was mainly caused by the increase in gross profit margin was partially offset by the increase in selling & distribution expenses of approximately $0.4 million, administrative expenses of approximately $0.1 million and incomes tax of approximately $0.3 million.
Finished goods are the largest part of our cost of revenue, representing 72.0% and 77.1% of our total cost of revenues for the financial years ended December 31, 2021 and 2020, respectively. Fluctuations in the price, availability, quality, cost of labor and transportation may impact the price of our finished goods, and ultimately the selling price.
Finished goods are the largest part of our cost of revenue, where the cost of revenue are representing approximately 74.6% and approximately 72.0% of our total revenue for the financial years ended December 31, 2022 and 2021, respectively.
Impact of Inflation In accordance with the Monetary Authority of Singapore, the year-over-year percentage changes in the consumer price index for 2022 and 2021 were 4.0% and 2.3%, respectively. The rate of inflation in Singapore as of January 2023 was 5.5% and is expected to continue to increase. Inflation in Singapore has not materially affected our profitability and operating results.
Impact of Inflation In accordance with the Monetary Authority of Singapore, the year-over-year percentage changes in the consumer price index for 2023 and 2022 were 4.2% and 4.1%, respectively.
For the years ended December 31, 2021 and 2020 The increase in revenue in Australia by $9.9 million for the financial year ended December 31, 2021, as compared to the corresponding financial year ended December 31, 2020, was primarily attributable to the increase sale orders by a major customer in Australia of approximately $9.6 million.
For the years ended December 31, 2022 and 2021 The revenue in Singapore increased by approximately $1.9 million for the financial year ended December 31, 2022, as compared to the corresponding financial year ended December 31, 2021, was primarily attributable to the decrease in demand from local customers. 56 Australia For the years ended December 31, 2023 and 2022 The decrease in revenue in Australia by approximately $2.3 million for the financial year ended December 31, 2023, as compared to the corresponding financial year ended December 31, 2022.
For the years ended December 31, 2020 For the financial year ended December 31, 2020, our net cash used in financing activities of $0.9 million, which mainly consisted of bank loan repayment of $0.4 million and repayment of lease liabilities of $0.5 million.
Cash flows from financing activities Our cash flows used in financing activities primarily consists of the proceeds from share issuance, repayment of borrowings, payment for capital portion of lease liabilities, payment of dividend, and loan from director For the years ended December 31, 202 3 For the financial year ended December 31, 2023, our net cash used in financing activities of $0.9 million, which mainly consisted of bank loan repayment of $7.4 million; the repayment of lease liabilities of $6.4 million; the payment of dividend of $10.5 million; loan from director of $9.9 million and proceeds from share issuance net of deferred offering costs of $13.5 million. 64 For the years ended December 31, 202 2 For the financial year ended December 31, 2022, our net cash used in financing activities of $0.2 million, which mainly consisted of bank loan repayment of $0.1 million, the repayment of lease liabilities of $0.1 million and the payment of dividend of $0.1 million.
For the years ended December 31, 2020 For the financial year ended December 31, 2020, our net cash used in investing activities was $0.6 million, primarily consisting of the purchase of property, plant and equipment.
Cash flows from investing activities For the years ended December 31, 202 3 For the financial year ended December 31, 2023, our net cash generated from investing activities was approximately $6.8 million, primarily consisting of the purchases of property, plant and equipment of approximately $2.0 million; the investment in equity securities of $2.2 million and offset by the proceeds from disposal of property and equipment of approximately $10.9 million and investment in financial assets available for sales of approximately $0.1 million.
An ECL rate is calculated based on historical loss rates of the industry in which our customers operate and ageing of the accounts receivable. During the financial years ended December 31, 2022 and 2021, other than the loss allowance provision discussed above, no impairment loss was provided for amounts that were past due.
An ECL rate is calculated based on historical loss rates of the industry in which our customers operate and ageing of the accounts receivable. Accounts payable For the years ended December 31, 2023 and 2022 The general credit terms from our major suppliers are payment within 30 days.
However, we can provide no assurance that we will not be affected by such inflationary pressures in Singapore or globally in the future.
The rate of inflation in Singapore as of February 2024 was 3.4% and is expected to allow to an average of 2.5% - 3.5%, such inflation in Singapore has not materially affected our profitability and operating results. However, we can provide no assurance that we not be affected by such inflationary pressures in Singapore or globally in the future.
Such increase was mainly attributable to the increase demand in our Equipment Sales of approximately $9.6 million as a result of demand from a major customer in Australia and offset by the drop in sales of $7.0 million in Singapore.
Such decrease was mainly attributable to the decrease demand in our equipment sales of approximately $7.5 million because of decrease in overseas demand.
Off-Balance Sheet Transactions As of December 31, 2022, we have not entered into any material off-balance sheet transactions or arrangements. We have not entered into any financial guarantees or other commitments to guarantee the payment obligations of any third parties.
James Lim and Ms. Lee NG. We already sought the waiver for the personal guarantees and the bank’s approval is still in progress. Capital commitments As of December 31, 2023 and 2022, we did not have any capital commitments. Off-Balance Sheet Transactions As of December 31, 2023, we have not entered into any material off-balance sheet transactions or arrangements.
For the financial years ended December 31, 2021 and 2020, our Jobs Support Scheme income amounted to $0.1 million and $0.6 million, respectively. At this time, we do not anticipate receiving any future income from the Jobs Support Scheme.
Our Jobs Scheme income amounted to approximately $0.01 million for both the financial year ended December 31, 2023 and 2022 respectively. For the years ended December 31, 2022 and 2021 Interest expenses remained stable at approximately $0.7 million for the financial years ended December 31, 2022 and 2021 from our bank loans and financing facilities.
As of December 31, 2022, bank and cash balances of $1.0 million were maintained at financial institutions in Singapore, of which approximately $1.0 million was subject to credit risk. While management believes that these financial institutions are of high credit quality, it also continually monitors their credit worthiness.
As of December 31, 2023, bank and cash balances of approximately $7.1 million were maintained at financial institutions in Singapore, of which approximately $7.1 million was subject to credit risk. For accounts receivable, the Company determines, on a continuing basis, the allowance for expected credit loss is based on the estimated realizable value.
For the financial year ended December 31, 2021, our income tax increased to approximately $0.2 million and our effective tax rate was 11.3 % due to tax refund from previous years. Such income tax decrease was generally in line with the increase in our profit for the financial year.
For the financial year ended December 31, 2023, our income tax decreased to approximately $0.05 million and our effective tax rate was 10.27% largely due to the gain from the sales of property (capital gain) which are not taxable.
Removed
See “Risk Factors – Risks Related to Our Business and Industry - Our business and operations may be materially and adversely affected in the event of a re-occurrence or a prolonged global pandemic outbreak of COVID-19”. We have been and are continuing to closely monitor the impact of COVID-19 on our business and operations.
Added
Fluctuations in the price, availability, quality, cost of labor and transportation may impact the price of our finished goods, and ultimately the selling price. We may be unable to pass all or any of these higher costs on to our customers, which could have a material adverse effect on our profitability.
Removed
The net income for the financial year ended December 31, 2021 was mainly caused by the increase in gross profit margin and lower interest costs that were partially offset by the decrease in other incomes and dividend income.
Added
Such increase was largely derived from the gain on disposal of property and equipment and the gain on early termination on lease liability of approximately $5.0 million and $0.1 million respectively, reduce in selling & distribution expenses and income tax expenses of approximately $0.6 million and $0.6 million respectively, and was offset by the decrease in gross profits $1.1 million, increased of administrative expenses and interest expense of approximately $4.0 million and $0.4 million respectively. 54 For the years ended December 31, 2022 and 2021 Our total revenue increased by approximately $5.0 million or approximately 15.0% to approximately $38.4 million for the year ended December 31, 2022 from approximately $33.4 million for the financial year ended December 31, 2021.
Removed
Jobs Support Scheme is an initiative introduced by the Singapore Government in February 2020 in response to the outbreak of COVID-19, and further enhanced in April, May and August 2020, to provide wage support to employers to help them retain local employees by co-funding 25% to 75% of the first S$4,600 of monthly salaries paid to each local employee in a 9-month period up to July 2020, and 10% to 50% of the same in the subsequent seven-month period from September 2020 to March 2021.

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Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

14 edited+11 added−2 removed241 unchanged
Ltd and INA Heavy Machinery & Equipment Pte Ltd. 38 Licenses and Certifications The following licenses and registrations are material for our Group’s operations: Description Issuing Authority Expiry Date Issued to Letter from the MOM dated October 15, 2016 confirming Multi Ways SG’s Factory Notification status MOM - Multi Ways SG Became a member of the SCAL and was admitted to the Registry of the Singapore List of Trade Subcontractors (SLOTS) SCAL January 29, 2024 Multi Ways SG BizSafe Level 4 Accreditation WSH January 29, 2024 Multi Ways SG Additionally, 15 of our employees are crane operators qualified and certified by the MOM in Singapore to erect and operate cranes in Singapore.
Ltd and INA Heavy Machinery & Equipment Pte Ltd. 38 Licenses and Certifications The following licenses and registrations are material for our Group’s operations: Description Issuing Authority Expiry Date Issued to Letter from the MOM dated October 15, 2016 confirming Multi Ways SG’s Factory Notification status MOM - Multi Ways SG Became a member of the SCAL and was admitted to the Registry of the Singapore List of Trade Subcontractors (SLOTS) SCAL January 29, 2025 Multi Ways SG BizSafe Level 4 Accreditation WSH January 29, 2025 Multi Ways SG Additionally, 14 of our employees are crane operators qualified and certified by the MOM in Singapore to erect and operate cranes in Singapore.
Rental contracts for other types of equipment are typically for a shorter duration, ranging from a few days to several months, depending on project requirements. Our Group also provides crane operation services to our customers, to complement the provision of crane rental service. We have 15 operators who are qualified to operate crane machinery in Singapore.
Rental contracts for other types of equipment are typically for a shorter duration, ranging from a few days to several months, depending on project requirements. Our Group also provides crane operation services to our customers, to complement the provision of crane rental service. We have 14 operators who are qualified to operate crane machinery in Singapore.
We have 56 employees in our maintenance and service team who are based in Singapore, comprising highly skilled mechanics, technicians, painters and panel-beaters who are well-qualified to refurbish the wide range of heavy construction equipment in our inventories.
We have 54 employees in our maintenance and service team who are based in Singapore, comprising highly skilled mechanics, technicians, painters and panel-beaters who are well-qualified to refurbish the wide range of heavy construction equipment in our inventories.
With this fleet renewal strategy, we believe that we are able to ensure our heavy construction equipment remains relevant and efficient and able to consistently deliver reliable service to our customers. 36 Our Services To complement our sales and rental of new and used heavy construction equipment, we offer the following services: ● Refurbishment and Servicing ● Troubleshooting and Repair ● Transportation and Erection ● Crane Operation ● Machinery Cleaning Services constitute approximately 6.2%, 8.7% and 9.2% of the Company’s total revenue for the financial years ended December 31, 2022, 2021 and 2020, respectively.
With this fleet renewal strategy, we believe that we are able to ensure our heavy construction equipment remains relevant and efficient and able to consistently deliver reliable service to our customers. 36 Our Services To complement our sales and rental of new and used heavy construction equipment, we offer the following services: ● Refurbishment and Servicing ● Troubleshooting and Repair ● Transportation and Erection ● Crane Operation ● Machinery Cleaning Services constitute approximately 17.6%, 6.2%, and 8.7% of the Company’s total revenue for the financial years ended December 31, 2023, 2022, and 2021, respectively.
Risk is inherent in our business, and therefore, despite our efforts to manage risk, there can be no assurance that we will not sustain unexpected losses. For a discussion of the factors that could materially affect our business, financial condition or future results of operations, see “ Item 3. Key Information — 3.D.
Risk is inherent in our business, and therefore, despite our efforts to manage risk, there can be no assurance that we will not sustain unexpected losses. For a discussion of the factors that could materially affect our business, financial condition or future results of operations, see “Item 3. Key Information — 3.D.
Our rental business constitutes approximately 9.9%, 13.2% and 17.0% of the Company’s total revenue for the financial years ended December 31, 2022, 2021 and 2020, respectively. 34 Rental Process Flow The process flow pertaining to our equipment rental business activities can be illustrated diagrammatically as follows: Customer Inquiries on Rental Customers approach us for our comprehensive equipment fleet and responsive service.
Our rental business constitutes approximately 13.8%, 9.9%, and 13.2% of the Company’s total revenue for the financial years ended December 31, 2023, 2022, and 2021 respectively. 34 Rental Process Flow The process flow pertaining to our equipment rental business activities can be illustrated diagrammatically as follows: Customer Inquiries on Rental Customers approach us for our comprehensive equipment fleet and responsive service.
We have 15 crane operators who are qualified and certified by the MOM to erect and operate cranes in Singapore.
We have 14 crane operators who are qualified and certified by the MOM to erect and operate cranes in Singapore.
In the financial year ended December 31, 2020, our Group’s total revenue generated from equipment sales business is $22.0 million, of which approximately 63.0% and 37.0% are sales from the Singapore and overseas markets respectively. 32 Sales Process Flow The process flow pertaining to our sales business activities can be generally illustrated diagrammatically as follows: Purchase of Equipment from Suppliers Our Executive Director, Chairman and Chief Executive Officer, Mr.
In the financial year ended December 31, 2021, our Group’s total revenue generated from equipment sales business is $26.1 million, of which approximately 27.0% and 73.0% are sales from the Singapore and overseas markets respectively. 32 Sales Process Flow The process flow pertaining to our sales business activities can be generally illustrated diagrammatically as follows: Purchase of Equipment from Suppliers Our Executive Director, Chairman and Chief Executive Officer, Mr.
Ltd. for the sale of 22 Gul Avenue, Singapore 629662 at S$14.3 million. The said option to purchase has been exercised by Yu Yee Engineering Pte. Ltd. on August 29, 2022.
Ltd. for the sale of 22 Gul Avenue, Singapore 629662 at S$14.3 million. The said option to purchase was exercised by Yu Yee Engineering Pte. Ltd. on August 29, 2022. The sale of the property was completed on November 30, 2023 for the purchase price of S$14.3 million.
Equipment sales business constitutes approximately 83.9%, 78.1% and 73.8% of our Group’s total revenue for the financial years ended December 31, 2022, 2021 and 2020 respectively. In the financial year ended December 31, 2022, our Group’s total revenue generated from equipment sales business was $32.2 million, of which approximately 31.2% and 68.8% were sales from Singapore and overseas markets respectively.
In the financial year ended December 31, 2022, our Group’s total revenue generated from equipment sales business was $32.2 million, of which approximately 31.2% and 68.8% were sales from Singapore and overseas markets respectively.
A description of Multi Ways SG’s leased real properties is below: Location Usage Lease Period Rent Approximate area 22 Gul Avenue Singapore 629662 Manufacture, fabricate, alter, modify, upgrade, install, repair and service all type of cranes, hoists, forklifts, shredders, machines, heavy purchase equipment, and all other related engineering works and services cum storage 20 years from February 16, 2017 S$12,066.50 per month (excluding GST) 8,613.8 square meters 16 Pioneer Sector 2 Singapore 628377 Manufacture, fabricate, repair and service crane hoist forklifts, machines, heavy equipment, engineering and services and storage 3 years from August 2, 2020 (with an option to renew for another 3 years) S$41,500 per month (excluding GST) 12,719.1 square meters 3E Gul Circle Singapore 629633 Business of Multi Ways SG 12 months from June 1, 2022 S$50,000 per month (excluding GST) 2,390 square meters Multi Ways SG had granted an option to purchase dated August 16, 2022 to Yu Yee Engineering Pte.
A description of Multi Ways SG’s leased real properties is below: Location Usage Lease Period Rent Approximate area 16 Pioneer Sector 2 Singapore 628377 Manufacture, fabricate, repair and service crane hoist forklifts, machines, heavy equipment, engineering and services and storage 3 years from August 2, 2020 (with an option to renew for another 3 years) S$41,500 per month (excluding GST) 12,719.1 square meters 3E Gul Circle Singapore 629633 Business of Multi Ways SG 12 months from June 1, 2023 S$50,000 per month (excluding GST) 2,390 square meters 50 Intellectual Property As of the date of this annual report, we have registered the trade mark in Singapore.
The Ordinary Shares began trading on April 3, 2023 on the NYSE American LLC under the ticker symbol “MWG.” Our Customers Our customers operate in various industries which range from the infrastructure and building construction industry, including piling and land reclamation, to the mining industry, marine industry and oil and gas industry.
Our Customers Our customers operate in various industries which range from the infrastructure and building construction industry, including piling and land reclamation, to the mining industry, marine industry and oil and gas industry.
In the financial year ended December 31, 2021, our Group’s total revenue generated from equipment sales business is $26.1 million, of which approximately 27.0% and 73.0% are sales from the Singapore and overseas markets respectively.
Equipment sales business constitutes approximately 68.6%, 83.9%, and 78.1% of our Group’s total revenue for the financial years ended December 31, 2023, 2022, and 2021 respectively. In the financial year ended December 31, 2023, our Group’s total revenue generated from equipment sales business was $24.7 million, of which approximately 42.4% and 57.6% were sales from Singapore and overseas markets respectively.
The Company received gross proceeds in the amount of US$15.1 million before deducting any underwriting discounts or expenses.
The Company received gross proceeds in the amount of US$15.1 million before deducting any underwriting discounts or expenses. The Ordinary Shares began trading on April 3, 2023 on the NYSE American LLC under the ticker symbol “MWG.” On August 16, 2022, Multi Ways SG granted an option to purchase to Yu Yee Engineering Pte.
Removed
The completion of the sale of the property is subject to the conditions precedent in the option to purchase being fulfilled, including but not limited to approval from JTC. 50 A description of leases entered into by Multi Ways SG (as sublessor) in respect of its real properties is below: Location Tenant Rent & Service Charge Authorized Use 22 Gul Avenue, Singapore 629662 Cosentino South East Asia Pte Ltd (“Cosentino”) S$49,925.40 per month (excluding GST), subject to market rental with rent revision not exceeding 10% and subject to JTC’s approval, which was revised to S$44,325.40 per month (excluding GST) from April 1, 2020, and subsequently revised to S$49,925.40 per month (excluding GST) with effect from August 1, 2021.
Added
On October 19, 2023, the Board of the Company approved and adopted an equity incentive plan (the “2023 Equity Incentive Plan”), which became effective on November 1, 2023.
Removed
The lease expired on March 31, 2023. The business of Cosentino (storage and distribution of stone and related products) Intellectual Property As of the date of this annual report, we have registered the trade mark in Singapore.
Added
On May 2, 2023, with the approval of the Board of the Company, the Company for a purchase price of US$2,200,000, acquired 420 shares representing a 4.4% ownership in the shares of Blissful Link Investments Limited for investment purposes. We have included the agreement as Exhibit 4.9 to this annual report. On February 13, 2024, Ms. Lee Pei Pei (“Ms.
Added
Lee”) provided notice of her intent to step down as the Chief Financial Officer of our Company effective March 12, 2024. Ms. Lee resigned for personal reasons and not as a result of any disagreement with the Company or its independent registered public accountants on any matter relating to the Company’s financial or accounting operations, policies or practices.
Added
To fill the vacancy created by Nancy’s resignation, on February 20, 2024, the Board, the Nomination Committee of the Board, and the Compensation Committee of the Board appointed Mr. Noon Huan to serve as the Company’s Financial Controller, effective on the same date. The role of Financial Controller is that of an employee, and Mr.
Added
Noon Huan is not a member of the Board. Mr. Noon Huan, age 47, is an experienced finance professional with over 20 years of experience in finance and accounting, spanning across various industries and regions, including a notable 4 year tenure as an external auditor.
Added
He possesses a diverse skill set, including handling full sets of accounts, financial analysis, strategic planning, and managing treasury functions. His expertise lies in areas such as financial reporting, budgeting, cash flow management, and internal control implementation. Mr.
Added
Noon Huan has a proven track record of driving results and leading teams to success, evident from his previous roles in corporations of various sizes. In his most recent role as the Head of Finance at Eastlog Holding Pte Ltd, Mr. Noon Huan managed a team to ensure accurate financial reporting and provided crucial financial insights to support strategic decision-making.
Added
He also negotiated banking facilities and implemented internal controls to safeguard company assets. Prior to that, as a Financial Controller at Fabristeel Pte Ltd, Mr. Noon Huan cleared accounts backlog, rolled out ERP systems, and improved accounts receivable and days sales outstanding metrics. His strategic planning and financial analysis skills were instrumental in driving profitable growth for the business unit.
Added
Throughout his career, Mr. Noon Huan has demonstrated initiative, attention to detail, and a proactive approach to his work. His strong leadership abilities, coupled with his extensive finance and accounting knowledge, make him a valuable asset to the Company. Mr. Noon Huan holds a Bachelor of Accountancy from the University of Putra Malaysia, Malaysia.
Added
Effective March 1, 2024, the Company and Noon Huan entered into an employment agreement (the “Employment Agreement”). Under the Employment Agreement, Noon Huan is entitled to an annual salary of S$108,000 (approximately $80,400) for his services as the Financial Controller of the Company. His employment has an initial term until his earlier death, resignation or removal. Mr.
Added
Noon Huan has no family relationships with any director or executive officer of the Company. There are no transactions between the Company and Noon Huan that will be required to be reported pursuant to Item 404(a) of Regulation S-K.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

21 edited+17 added−5 removed60 unchanged
Unless otherwise noted below, the address of each person listed on the table is 3E Gul Circle, Singapore 629633. Shares Beneficially Owned Name of Beneficial Owner Number Percentage % Executive Officers and Directors: Mr. James Lim (1) 19,967,256 64.75 Ms. Lee NG (1) 617,544 2.00 Ms. Maggie Lim - - Mr. Nick Tan - - Ms.
Unless otherwise noted below, the address of each person listed on the table is 3E Gul Circle, Singapore 629633. Shares Beneficially Owned Name of Beneficial Owner Number Percentage % Executive Officers and Directors: Mr. James Lim (1) 19,967,256 64.75 Ms. Lee NG (1) 617,544 2.00 Ms. Maggie Lim - - Mr. Nick Tan - - Mr.
Under the Directors’ Agreements, the initial aggregate annual salary that is payable to our Independent Directors is S$25,000 to Mr. Edmund Chan, S$22,000 to Mr. Jimmy Neo, and S$22,000 to Mr. Wong in cash respectively.
Under the Directors’ Agreements, the aggregate annual salary that is payable to our Independent Directors is S$25,000 to Mr. Edmund Chan, S$22,000 to Mr. Jimmy Neo, and S$22,000 to Mr. Wong in cash respectively.
James Lim and Multi Ways SG Effective as of August 1, 2022, Multi Ways SG entered into an Employment Agreement with Mr. James Lim. The agreement provides for an annual base salary, together with such additional discretionary bonus. Mr.
Employment Agreements Employment Agreement between Mr. James Lim and Multi Ways SG Effective as of August 1, 2022, Multi Ways SG entered into an Employment Agreement with Mr. James Lim. The agreement provides for an annual base salary, together with such additional discretionary bonus. Mr.
Item 6. Directors, Senior Management and Employees 6.A. Directors and Senior Management The following table provides information regarding our executive officers and directors as of the date hereof: Name Age Position(s) Mr. “James” Lim Eng Hock 64 Executive Director, Chairman and Chief Executive Officer Ms. Lee NG 65 Executive Director and Chief Administration Officer Ms.
Item 6. Directors, Senior Management and Employees 6.A. Directors and Senior Management The following table provides information regarding our executive officers and directors as of the date hereof: Name Age Position(s) Mr. “James” Lim Eng Hock 66 Executive Director, Chairman and Chief Executive Officer Ms. Lee NG 66 Executive Director and Chief Administration Officer Ms.
For the financial year ended December 31, 2021, we paid an aggregate of approximately S$649,000 (US$480,000) in cash to our Executive Directors and Executive Officers – Mr. James Lim, Ms. Lee NG, Ms. Maggie Lim, Mr. Nick Tan and Ms . Nancy Lee .
For the financial year ended December 31, 2021, we paid an aggregate of approximately S$649,000 (US$480,000) in cash to our Executive Directors and Executive Officers – Mr. James Lim, Ms. Lee NG, Ms. Maggie Lim, Mr. Nick Tan and then Chief Financial Officer Ms . Nancy Lee .
Employees We employed 87 persons as December 31, 2022, 93 persons as of December 31, 2021, and 116 persons as of December 31, 2020, who were all located in Singapore. Our employees are not covered by collective bargaining agreements. We consider our labor practices and employee relations to be good. 6.E.
Employees We employed 92 persons as of December 31, 2023, 87 persons as of December 31, 2022, and 93 persons as of December 31, 2021, who were all located in Singapore. Our employees are not covered by collective bargaining agreements. We consider our labor practices and employee relations to be good. 6.E.
Nancy Lee is responsible for the following matters relating to our Group: ● financial reporting of the Company, including managing accounting operations, statutory financial audit reporting and coordinating corporate tax and indirect tax submissions; ● preparation of budget and financial forecasts; ● development and implementation of financial policies and procedures in business processes; and ● strengthening internal control. 77 Prior to joining our Group, Ms.
Noon Huan is responsible for the following matters relating to our Group: ● financial reporting of the Company, including managing accounting operations, statutory financial audit reporting and coordinating corporate tax and indirect tax submissions; ● preparation of budget and financial forecasts; ● development and implementation of financial policies and procedures in business processes; and ● strengthening internal control. 77 Prior to joining our Group, Mr.
Nancy Lee - - Independent Directors: Mr. Edmund Chan - - Mr. Gang Wong - - Mr. Jimmy Neo - - 5% Shareholders: MWE Investments 20,584,800 66.75 (1) Represents shares held by MWE Investments, a company directly owned as to 97.0% and 3.0% by Mr. James Lim and Ms. Lee NG, respectively.
Noon Huan Tan - - Independent Directors: Mr. Edmund Chan - - Mr. Gang Wong - - Mr. Jimmy Neo - - 5% Shareholders: MWE Investments 20,584,800 66.75 (1) Represents shares held by MWE Investments, a company directly owned as to 97.0% and 3.0% by Mr. James Lim and Ms. Lee NG, respectively. 6.F.
Maggie Lim. 6.B. Compensation Compensation of Executive Directors and Executive Officers For the financial year ended December 31, 2022, we paid an aggregate of approximately S$763,000 (US$556,000) in cash to our Executive Directors and Executive Officers – Mr. James Lim, Ms. Lee NG, Ms. Maggie Lim, Mr. Nick Tan and Ms . Nancy Lee .
For the financial year ended December 31, 2022, we paid an aggregate of approximately S$763,000 (US$556,000) in cash to our Executive Directors and Executive Officers – Mr. James Lim, Ms. Lee NG, Ms. Maggie Lim, Mr. Nick Tan and then Chief Financial Officer Ms . Nancy Lee.
Other than as disclosed above, none of our Directors have entered into a service agreement with our Company or any of our subsidiaries that provides for benefits upon termination of employment. 6.C. Board Practices Board of Directors Our board of directors consists of five directors.
Other than as disclosed above, none of our Directors have entered into a service agreement with our Company or any of our subsidiaries that provides for benefits upon termination of employment.
A director is not required to hold any shares in our company to qualify to serve as a director. Subject to the rules of the relevant stock exchange and disqualification by the chairman of the board of directors, a director may vote with respect to any contract, proposed contract, or arrangement in which he or she is materially interested.
Subject to the rules of the relevant stock exchange and disqualification by the chairman of the board of directors, a director may vote with respect to any contract, proposed contract, or arrangement in which he or she is materially interested.
Edmund Chan has completed the examination from Association of Chartered Certified Accountants and obtained the certificate in 2011. Mr. Edmund Chan is a member of the Association of Chartered Certified Accountants (ACCA) since 2014.
Edmund Chan has been the Finance & HR Manager of Signmechanic Pte Ltd in Singapore. Mr. Edmund Chan has completed the examination from Association of Chartered Certified Accountants and obtained the certificate in 2011. Mr. Edmund Chan is a member of the Association of Chartered Certified Accountants (ACCA) since 2014.
Nick Tan shall not, during the term of the agreement and for 12 months after cessation of employment, carry on business in competition with the Group. Employment Agreement between Ms. Nancy Lee and Multi Ways SG Multi Ways SG entered into an Employment Agreement dated effective as of August 16, 2022 with Ms. Nancy Lee.
Nick Tan shall not, during the term of the agreement and for 12 months after cessation of employment, carry on business in competition with the Group. Employment Agreement between Mr. Noon Huan and Multi Ways SG Multi Ways SG entered into an Employment Agreement dated effective as of March 1, 2024 with Mr. Noon Huan.
Each Director’s Agreement is for an initial term of one year and will continue until the Director’s successor is duly elected and qualified. Each Director will be up for re-election each year at the annual shareholders’ meeting and, upon re-election, the terms and provisions of his or her Director’s Agreement will remain in full force and effect.
Each Director will be up for re-election each year at the annual shareholders’ meeting and, upon re-election, the terms and provisions of his or her Director’s Agreement will remain in full force and effect.
“Maggie” Lim Mei Jun 38 Deputy Chief Executive Officer Mr. “Nick” Tan Lu Chong 42 Chief Operating Officer Ms. “Nancy” Lee Pei Pei 56 Chief Financial Officer Mr. Chin Hoong “Edmund” Chan 35 Independent Director Mr. Gang Wong 52 Independent Director Mr. Chin Heng “Jimmy” Neo 59 Independent Director Executive Directors and Officers: Mr. “James” Lim Eng Hock (“Mr.
“Maggie” Lim Mei Jun 40 Deputy Chief Executive Officer Mr. “Nick” Tan Lu Chong 43 Chief Operating Officer Mr. Tan Noon Huan 48 Chief Financial Officer Mr. Chin Hoong “Edmund” Chan 36 Independent Director Mr. Gang Wong 53 Independent Director Mr. Chin Heng “Jimmy” Neo 59 Independent Director Executive Directors and Officers: Mr. “James” Lim Eng Hock (“Mr.
For the financial year ended December 31, 2020, we paid an aggregate of approximately S$593,000 (US$449,000) in cash to our Executive Directors and Executive Officers – Mr. James Lim, Ms. Lee NG, Ms. Maggie Lim, Mr. Nick Tan and Ms . Nancy Lee . Employment Agreements Employment Agreement between Mr.
Maggie Lim. 6.B. Compensation Compensation of Executive Directors and Executive Officers For the financial year ended December 31, 2023, we paid an aggregate of approximately S$1,044,919 (US$782,828) in cash to our Executive Directors and Executive Officers – Mr. James Lim, Ms. Lee NG, Ms. Maggie Lim, Mr. Nick Tan and then Chief Financial Officer Ms . Nancy Lee.
Edmund Chan worked as a senior audit associate at KPMG in Malaysia. From 2013 to 2018, Mr. Edmund Chan worked as audit assistant manager at BDO LLP in Singapore. Since 2018, Mr. Edmund Chan has been the Finance & HR Manager of Signmechanic Pte Ltd in Singapore. Mr.
From 2011 to 2012, Mr. Edmund Chan worked as an audit associate at Cheng & Co. in Malaysia. From 2012 to 2013, Mr. Edmund Chan worked as a senior audit associate at KPMG in Malaysia. From 2013 to 2018, Mr. Edmund Chan worked as audit assistant manager at BDO LLP in Singapore. Since 2018, Mr.
The agreement provides for a monthly base salary. Under the terms of the agreement, Ms. Nancy Lee’s employment will continue indefinitely, subject to termination by either party to the agreement upon 6 months’ written notice or the equivalent salary in lieu of such notice. The agreement also provides that Ms.
The agreement provides for a monthly base salary. Under the terms of the agreement, Mr. Noon Huan’s employment will continue indefinitely, subject to termination by either party to the agreement upon 2 months’ written notice or the equivalent salary in lieu of such notice. Directors’ Agreements Each of our Directors has entered into a Director’s Agreement with the Company.
Edmund Chan will serves as chairman of the audit committee and as a member of the compensation and nomination committees. Mr. Edmund Chan has been in the audit and accounting field for over 10 years. From 2011 to 2012, Mr. Edmund Chan worked as an audit associate at Cheng & Co. in Malaysia. From 2012 to 2013, Mr.
Noon Huan holds a Bachelor of Accountancy from the University of Putra Malaysia, Malaysia. Independent Directors: Mr. Chin Hoong Chan (“Mr. Edmund Chan”) Mr. Edmund Chan will serves as chairman of the audit committee and as a member of the compensation and nomination committees. Mr. Edmund Chan has been in the audit and accounting field for over 10 years.
Nick Tan obtained an Honours in Economics and Management in SIM University, Singapore – University of London. Ms. Nancy Lee Pei Pei (“Ms. Nancy Lee”) is our Chief Financial Officer. She was appointed on May 17, 2022. Ms.
Nick Tan obtained an Honours in Economics and Management in SIM University, Singapore – University of London. Mr. Tan Noon Huan (“Mr. Noon Huan”) is our Chief Financial Officer. He was appointed on March 1, 2024. Mr.
Nancy Lee shall not, during the term of the agreement and for 12 months after cessation of employment, carry on business in competition with the Group. Directors’ Agreements Each of our Directors has entered into a Director’s Agreement with the Company. The terms and conditions of such Directors’ Agreements are similar in all material aspects.
The terms and conditions of such Directors’ Agreements are similar in all material aspects. Each Director’s Agreement is for an initial term of one year and will continue until the Director’s successor is duly elected and qualified.
Removed
Nancy Lee has close to 30 years of experiences in multinational financial management across multiple industries, including 10 years of experience in the oil and gas industry, specializing in engineering, procurement, construction and installation (EPCI) of floating, production, storage and offloading vessels (FPSO) and various types of gas production floaters, 16 years of experience in manufacturing and production and 4 years of experience in multinational corporation.
Added
Noon Huan, is an experienced finance professional with over 20 years of experience in finance and accounting, spanning across various industries and regions, including a notable 4 years tenure as an external auditor. He possesses a diverse skill set, including handling full sets of accounts, financial analysis, strategic planning, and managing treasury functions.
Removed
Prior to joining our Group, Ms. Nancy Lee worked in ASL Marine Holdings Ltd as a finance manager of the engineering division, VOSTA Group from November 2019 to May 2022. She also worked in Rheem Manufacturing as a finance manager from November 2015 to October 2019.
Added
His expertise lies in areas such as financial reporting, budgeting, cash flow management, and internal control implementation. Mr. Noon Huan has a proven track record of driving results and leading teams to success, evident from his previous roles in corporations of various sizes. In his most recent role as the Head of Finance at Eastlog Holding Pte Ltd, Mr.
Removed
From September 2005 to September 2014, she was a finance reporting manager in Modec Offshore Production Systems Pte. Ltd. From January 2004 to September 2005, she worked as an accounts manager in Eltici Consulting Pte. Ltd. She was a finance and admin manager in Nagase Finechem Singapore Pte. Ltd from June 2002 to December 2003.
Added
Noon Huan managed a team to ensure accurate financial reporting and provided crucial financial insights to support strategic decision-making. He also negotiated banking facilities and implemented internal controls to safeguard company assets. Prior to that, as a Financial Controller at Fabristeel Pte Ltd, Mr.
Removed
From May 1999 to May 2002, she was a finance and admin manager in Toprint Computer Supplies Pte. Ltd. and from August 1991 to April 1999, she was a finance and admin manager in OYL Appliances Sdn Bhd. Ms.
Added
Noon Huan cleared accounts backlog, rolled out ERP systems, and improved accounts receivable and days sales outstanding metrics. His strategic planning and financial analysis skills were instrumental in driving profitable growth for the business unit. Throughout his career, Mr. Noon Huan has demonstrated initiative, attention to detail, and a proactive approach to his work. Mr.
Removed
Nancy Lee was admitted as an Affiliated Member of the Association of International Accountants in May 1995 and she obtained a Bachelor of Business Administration in Accounting (BBA) from the Irish University Business School in October 2005. Independent Directors: Mr. Chin Hoong Chan (“Mr. Edmund Chan”) Mr.
Added
Equity Incentive Plan On October 19, 2023, the Company adopted the 2023 Equity Incentive Plan (the “2023 Incentive Plan”), for the purpose of granting share-based compensation awards to employees, directors and consultants to incentivize their performance and align their interests with ours. Under the 2023 Incentive Plan, we are authorized to issue an aggregate of 3,000,000 ordinary shares.
Added
As of the date of this annual report, no ordinary shares have been granted and outstanding. The following paragraphs summarize the terms of the 2023 Incentive Plan. Types of Awards. The 2023 Incentive Plan permits the awards of options, stock appreciation rights, restricted stock, restricted stock units, stock bonus awards and/or performance compensation awards. Plan Administration .
Added
The 2023 Incentive Plan is administered by the Compensation Committee of the Board or any other committee appointed by the Board to administer this Plan (or if no Committee is appointed, the Board).
Added
The plan administrator is entitled to determine the participants who are to receive awards, the number of awards to be granted, and the terms and conditions of each award grant. Eligibility . Employees, directors and officers and the consultants of our company are eligible to participate pursuant to the terms of the 2023 Incentive Plan. Conditions of Award .
Added
The plan administrator shall determine the participants, types of awards, numbers of shares to be covered by awards, terms and conditions of each award, and provisions with respect to the vesting schedule, settlement, exercise, repurchase, cancellation, forfeiture, restrictions, limitations or suspension of awards. Term of Award .
Added
The term of each award shall be fixed by the administrator and is stated in the award agreement between recipient of an award and us. No award shall be granted under the 2023 Incentive Plan after ten years from the date the 2023 Incentive Plan was approved by the board. Vesting Schedule .
Added
In general, the plan administrator determines the vesting schedule, which is set forth in the award agreement. Transfer Restrictions .
Added
Unless otherwise determined by the administrator of the 2023 Incentive Plan, no award and no right under any such award shall be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent and distribution or pursuant to a qualified domestic relations order, and shall not be subject to execution, attachment, or similar process.
Added
Clawback Policy adopted by the Board On December 1, 2023, the Board adopted an Executive Compensation Recovery Policy (the “Clawback Policy”) providing for the recovery of certain incentive-based compensation from current and former executive officers of the Company in the event the Company is required to restate any of its financial statements filed with the SEC under the Exchange Act in order to correct an error that is material to the previously-issued financial statements, or that would result in a material misstatement if the error were corrected in the current period or left uncorrected in the current period.
Added
Adoption of the Clawback Policy was mandated by new NYSE listing standards introduced pursuant to Exchange Act Rule 10D-1.
Added
The Clawback Policy is in addition to Section 304 of the Sarbanes-Oxley Act of 2002 which permits the SEC to order the disgorgement of bonuses and incentive-based compensation earned by a registrant issuer’s chief executive officer and chief financial officer in the year following the filing of any financial statement that the issuer is required to restate because of misconduct, and the reimbursement of those funds to the issuer.
Added
A copy of the Clawback Policy has been filed herewith as Exhibit 97.1. 6.C. Board Practices Board of Directors Our board of directors consists of five directors. A director is not required to hold any shares in our company to qualify to serve as a director.
Added
Disclosure of Action to Recover Erroneously Awarded Compensation There was no erroneously awarded compensation that was required to be recovered pursuant to the Company’s Executive Compensation Recovery Policy during the fiscal year ended December 31, 2023.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

3 edited+0 added−0 removed5 unchanged
Set forth below are related-party transactions of our Company for the financial years ended December 31, 2022, 2021 and 2020, which are identified in accordance with the rules prescribed under Form F-1 and Form 20-F and may not be considered as related-party transactions under Singapore law.
Set forth below are related-party transactions of our Company for the financial years ended December 31, 2023, 2022 and 2021, which are identified in accordance with the rules prescribed under Form F-1 and Form 20-F and may not be considered as related-party transactions under Singapore law.
In the ordinary course of business, during the financial years ended December 31, 2022, 2021 and 2020, the Company involved with certain transactions, either at cost or current market prices, and on the normal commercial terms among related parties.
In the ordinary course of business, during the financial years ended December 31, 2023, 2022 and 2021, the Company involved with certain transactions, either at cost or current market prices, and on the normal commercial terms among related parties.
The following table provides the transactions with these parties for the years as presented (for the portion of such period that they were considered related): Financial Years ended December 31, 2022 2021 2020 Nature of transactions $’000 $’000 $’000 P4 Engineering Industrial Pte Ltd (1) - Sale of goods - 414 891 - Purchases of goods 945 640 1,906 - Land rental 404 207 506 Multi Ways Equipment Sdn Bhd (2) - Sale of goods - 151 1 MWE Investment Pte Ltd (4) - Sale of goods 11 - - Yin Zhan Holding Pte Ltd (5) - Sale of goods - 5 488 - Purchases of goods 413 81 1,632 These related parties are controlled by the common directors and officers of the Company.
The following table provides the transactions with these parties for the years as presented (for the portion of such period that they were considered related): Financial Years ended December 31, 2023 2022 2021 Nature of transactions $’000 $’000 $’000 P4 Engineering Industrial Pte Ltd (1) - Sale of goods 150 - 414 - Purchases of goods 736 945 640 - Land rental 452 404 207 -Loan interest income 21 - - Multi Ways Equipment Sdn Bhd (2) - Sale of goods - - 151 MWE Investment Pte Ltd (4) - Sale of goods - 11 - Yin Zhan Holding Pte Ltd (5) - Sale of goods - 5 - Purchases of goods - 413 81 -Other services income 7 - - Loan from director - James Lim Eng Hock 9,881 - - These related parties are controlled by the common directors and officers of the Company.

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