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JE Cleantech Holdings Ltd

JE Cleantech Holdings LtdJCSE決算レポート

Nasdaq

JE Cleantech Holdings Ltd is a Singapore-based cleantech enterprise that delivers precision industrial cleaning systems, wastewater treatment solutions, and environmental protection equipment to global manufacturing clients. Its core target segments include semiconductor, electronics, and automotive sectors, supporting customers to achieve sustainability targets and operational compliance requirements.

What changed in JE Cleantech Holdings Ltd's 20-F — 2022 vs 2023

Top changes in JE Cleantech Holdings Ltd's 2023 20-F

450 paragraphs added · 501 removed · 343 edited across 5 sections

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

88 edited+29 added−25 removed157 unchanged
To the extent that our Group’s sales and purchases and operating costs are not denominated in the same currency and to the extent that there are timing differences between invoicing and payment from our customers and to our suppliers, we may be exposed to foreign currency exchange gains or losses arising from transactions in currencies other than our reporting currency.
To the extent that our Group’s sales, purchases and operating costs are not denominated in the same currency and to the extent that there are timing differences between invoicing and payment from our customers and to our suppliers, we may be exposed to foreign currency exchange gains or losses arising from transactions in currencies other than our reporting currency.
We rely heavily on financial, accounting, communication, and other data processing systems as well as the experienced staff who operate them to securely process, transmit and store sensitive and confidential customer information, and communicate with our staff, customers, partners, and suppliers.
We rely heavily on financial, accounting, communication and other data processing systems as well as the experienced staff who operate them to securely process, transmit and store sensitive and confidential customer information, and to communicate with our staff, customers, partners and suppliers.
Although the specific cause of such volatility is unclear, our public float may amplify the impact the actions taken by a few shareholders have on the price of our Ordinary Shares, which may cause our share price to deviate, potentially significantly, from a price that better reflects the underlying performance of our business.
Although the specific cause of such volatility is unclear, our public float may amplify the impact that actions taken by a few shareholders have on the price of our Ordinary Shares, which may cause our share price to deviate, potentially significantly, from a price that better reflects the underlying performance of our business.
In addition, investors of our Ordinary Shares may experience losses, which may be material, if the price of our Ordinary Shares declines or if such investors purchase shares of our Ordinary Shares prior to any price decline.
In addition, investors of our Ordinary Shares may experience losses, which may be material, if the price of our Ordinary Shares declines or if such investors purchase our Ordinary Shares prior to any price decline.
Holders of our Ordinary Shares may also not be able to readily liquidate their investment or may be forced to sell at depressed prices due to low volume trading. Broad market fluctuations and general economic and political conditions may also adversely affect the market price of our Ordinary Shares.
Holders of our Ordinary Shares also may not be able to readily liquidate their investment or may be forced to sell at depressed prices due to low volume trading. Broad market fluctuations and general economic and political conditions may also adversely affect the market price of our Ordinary Shares.
If we continue to encounter such volatility, including any rapid stock price increases and declines seemingly unrelated to our actual or expected operating performance and financial condition or prospects, it will likely make it difficult and confusing for prospective investors to assess the rapidly changing value of our Ordinary Shares and understand the value thereof.
If we continue to encounter such volatility, including any rapid stock price increases and declines seemingly unrelated to our actual or expected operating performance and financial condition or prospects, it will likely make it difficult and confusing for prospective investors to assess the rapidly changing value of our Ordinary Shares and to understand the value thereof.
We will also have to comply with U.S. federal proxy requirements, and our officers, directors and 10% shareholders will become subject to the short-swing profit disclosure and recovery provisions of Section 16 of the Exchange Act. In addition, we will lose our ability to rely upon exemptions from certain corporate governance requirements under the listing rules of the Nasdaq.
We will also have to comply with U.S. federal proxy requirements, and our officers, directors and 10% shareholders will become subject to the short-swing profit disclosure and recovery provisions of Section 16 of the Exchange Act. In addition, we will lose our ability to rely upon exemptions from certain corporate governance requirements under the listing rules of Nasdaq.
In the event we are unable to secure new contracts from existing or new customers, there may be a significant decrease in revenue and our business, financial condition, results of operations and prospects may be materially and adversely affected. 5 We depend on our key management team and our experienced and skilled personnel and our business may be severely disrupted if we are unable to retain them or to attract suitable replacements.
In the event that we are unable to secure new contracts from existing or new customers, there may be a significant decrease in revenue and our business, financial condition, results of operations and prospects may be materially and adversely affected. 5 We depend on our key management team and our experienced and skilled personnel and our business may be severely disrupted if we are unable to retain them or to attract suitable replacements.
As a result, for so long as we remain a controlled company as defined under that rule, we are exempt from, and our shareholders generally are not provided with the benefits of, some of the Nasdaq Stock Market corporate governance requirements, including that: ● a majority of our board of directors must be independent directors; ● our compensation committee must be composed entirely of independent directors; and ● our corporate governance and nomination committee must be composed entirely of independent directors.
As a result, for so long as we remain a controlled company as defined under that rule, we are exempt from, and our shareholders generally are not provided with the benefits of, some of the Nasdaq Stock Market corporate governance requirements, including that: ● a majority of our board of directors must be independent directors; 17 ● our compensation committee must be composed entirely of independent directors; and ● our corporate governance and nomination committee must be composed entirely of independent directors.
The war in Ukraine could materially and adversely affect our business and results of operations. The outbreak of war in February 2022 in Ukraine has already affected global economic markets, including a dramatic increase in the price of oil and gas, and the uncertain resolution of this conflict could result in protracted and/or severe damage to the global economy.
The war in Ukraine could materially and adversely affect our business and results of operations. The outbreak of war in February 2022 in Ukraine has affected global economic markets, including a dramatic increase in the price of oil and gas, and the uncertain resolution of this conflict could result in protracted and/or severe damage to the global economy.
The increase in using mobile technologies can heighten these and other operational risks. 12 We cannot assure you that we or the third parties on which we rely will be able to anticipate, detect or implement effective preventative measures against frequently changing cyber-attacks.
The increase in using mobile technologies can heighten these and other operational risks. We cannot assure you that we or the third parties on which we rely will be able to anticipate, detect or implement effective preventative measures against frequently changing cyber-attacks.
We cannot predict what effect, if any, market sales of securities held by our controlling shareholder or any other shareholder or the availability of these securities for future sale will have on the market price of our shares. 15 Short selling may drive down the market price of our Ordinary Shares.
We cannot predict what effect, if any, market sales of securities held by our controlling shareholder or any other shareholder or the availability of these securities for future sale will have on the market price of our shares. Short selling may drive down the market price of our Ordinary Shares.
Even if you are successful in bringing an action of this kind, the laws of the Cayman Islands may render you unable to enforce a judgment against our assets or the assets of our directors and officers.
Even if you are successful in bringing an action of this kind, the laws of the Cayman Islands and Singapore may render you unable to enforce a judgment against our assets or the assets of our directors and officers.
In such event, we may incur additional costs to comply with such new or modified standards which may adversely affect our profitability. 8 We depend on the quality of the work of our sub-contractors.
In such event, we may incur additional costs to comply with such new or modified standards which may adversely affect our profitability. We depend on the quality of the work of our sub-contractors.
Russia’s recent military interventions in Ukraine have led to, and may lead to, additional sanctions being levied by the United States, European Union and other countries against Russia.
Russia’s military interventions in Ukraine have led to, and may lead to, additional sanctions being levied by the United States, European Union and other countries against Russia.
While none of our workers were involved in any work-related accidents or suffered any work-related injuries during the financial years ended December 31, 2020, 2021 and 2022, or during the period from January 1, 2023 through the present date, there is no assurance that there will not be any such accidents or injuries in the future, which could cause operational breakdowns.
While none of our workers were involved in any work-related accidents or suffered any work-related injuries during the years ended December 31, 2021, 2022 and 2023, or during the period from January 1, 2023 through the present date, there is no assurance that there will not be any such accidents or injuries in the future, which could cause operational breakdowns.
We are not aware of any instances of fraud, theft and other misconduct involving employees and other third parties that had any material and adverse impact on our business and results of operations during the financial years ended December 31, 2021 and 2022, or during the period from January 1, 2023 to the present date.
We are not aware of any instances of fraud, theft and other misconduct involving employees and other third parties that had any material and adverse impact on our business and results of operations during the years ended December 31, 2021, 2022 and 2023, or during the period from January 1, 2024 to the present date.
Accordingly, there is uncertainty as to whether we will be able to secure new contracts and orders in the future and in the event that our Group fails to secure new contracts or orders of contract values, size and/or margins comparable to previous orders, our business, financial condition, results of operations and prospects may be materially and adversely affected.
Accordingly, there is uncertainty as to whether we will be able to secure new contracts and orders in the future and in the event that our Group fails to secure new contracts or orders of contract values, size and/or margins comparable to previous orders, our business, financial condition, results of operations and prospect may be materially and adversely affected.
If we are unable to employ suitable personnel, or if our personnel do not fulfil their roles or if we experience a high turnover of experienced and skilled personnel without suitable, timely or sufficient replacements, the quality of our products and/or services may decline, which may adversely affect our business, financial condition, results of operations and prospects.
If we are unable to employ suitable personnel, or if our personnel do not fulfill their roles or if we experience a high turnover of experienced and skilled personnel without suitable, timely or sufficient replacements, the quality of our products and/or services may decline, which may adversely affect our business, financial condition, results of operations and prospects.
Hong Bee Yin, our Chairman, executive Director and chief executive officer, contributes significantly to various key aspects of our business, including business development and operations, the continued success and growth of our Group is dependent on our ability to retain her services. We do not carry key person life insurance on the life of Ms.
Hong Bee Yin, our Chairman, Executive Director and Chief Executive Officer, contributes significantly to various key aspects of our business, including business development and operations, the continued success and growth of our Group is dependent on our ability to retain her services. We do carry key person life insurance on the life of Ms. Hong. The loss of Ms.
During the financial years ended December 31, 2020, 2021 and 2022 and during the period from January 1, 2023 to the present date, we engaged third party information technology service providers to provide support services for our various hardware and software systems.
During the years ended December 31, 2021, 2022 and 2023 and during the period from January 1, 2023 to the present date, we engaged third party information technology service providers to provide support services for our various hardware and software systems.
The determination of foreign private issuer status is made annually on the last Business Day of an issuer’s most recently completed second fiscal quarter, and, accordingly, the next determination will be made with respect to us on June 30, 2023.
The determination of foreign private issuer status is made annually on the last Business Day of an issuer’s most recently completed second fiscal quarter, and, accordingly, the next determination will be made with respect to us on June 30, 2024.
While we did not experience any material order cancellations by our customers during the financial years ended December 31, 2020, 2021 and 2022, or during the period from January 1, 2023 to the present date, there is no assurance that our customers will not cancel their orders and/or refuse to make payment in the future in a timely manner or at all.
While we did not experience any material order cancellations by our customers during the years ended December 31, 2021, 2022 and 2023, or during the period from January 1, 2024 to the present date, there is no assurance that our customers will not cancel their orders and/or refuse to make payment in the future in a timely manner or at all.
Shareholders of Cayman Islands exempted companies like us have no general rights under Cayman Islands law to inspect corporate records (other than the Amended Memorandum and Articles of Association) or to obtain copies of lists of shareholders of these companies.
Shareholders of Cayman Islands exempted companies like us have no general rights under Cayman Islands law to inspect corporate records (other than the Amended and Restated Memorandum and Amended and Restated Articles) or to obtain copies of lists of shareholders of these companies.
This may result in our inability to attract new customers or retain existing customers and may in turn adversely affect our business and results of operations. Our insurance coverage may be inadequate. We maintain insurance coverage for our major assets and operations, including insurance covering plant and machinery, fire, theft and accident.
This may result in our inability to attract new customers or retain existing customers and may in turn adversely affect our business and results of operations. Our insurance coverage may be inadequate. We maintain insurance coverage for our major assets and operations, including insurance covering plant and machinery, fire, theft, accident and key person life insurance.
If one or more analysts downgrade our shares, the market price for our shares would likely decline. If one or more of these analysts cease to cover us or fail to regularly publish reports on us, we could lose visibility in the financial markets, which in turn could cause the market price or trading volume for our shares to decline.
If one or more of these analysts cease to cover us or fail to regularly publish reports on us, we could lose visibility in the financial markets, which in turn could cause the market price or trading volume for our shares to decline.
Recently, companies with comparable public floats and initial public offering sizes have experienced instances of extreme stock price run-ups followed by rapid price declines, and such stock price volatility was seemingly unrelated to the respective company’s underlying performance.
Recently, companies with public floats and initial public offering sizes comparable to ours have experienced instances of extreme stock price run-ups followed by rapid price declines, and such stock price volatility was seemingly unrelated to the respective companies’ underlying performance.
As long as our Ordinary Shares are listed on Nasdaq, U.S. federal law prevents or preempts the states from regulating their sale. However, the law does allow the states to investigate companies if there is a suspicion of fraud, and, if there is a finding of fraudulent activity, then the states can regulate or bar their sale.
In addition, as long as our Ordinary Shares are listed on Nasdaq, U.S. federal law prevents or preempts the states from regulating their sale, although the law does allow the states to investigate companies if there is a suspicion of fraud and, if there is a finding of fraudulent activity, then the states can regulate or bar their sale.
This may continue in the future because of the broad market and industry factors, like the performance and fluctuation of the market prices of other companies with business operations located mainly in Singapore that have listed their securities in the United States.
This may continue in the future because of broad market and industry factors, such as the performance and fluctuation of the market prices of other companies with business operations located mainly in Singapore that have listed their securities in the United States.
We are vulnerable to fluctuations in the cost or supply of our raw materials. Expenses for raw materials, such as stainless steel, aluminum, and electronic components, constitute most of our cost of revenues, representing approximately 57.8%, 43.5% and 57.8% of our total cost of revenues for the financial years ended December 31, 2020, 2021 and 2022, respectively.
We are vulnerable to fluctuations in the cost or supply of our raw materials. Expenses for raw materials, such as stainless steel, aluminum and electronic components, constitute most of our cost of revenues, representing approximately 43.5%, 57.8% and 40.5% of our total cost of revenues for the years ended December 31, 2021, 2022 and 2023, respectively.
In the future, we would lose our foreign private issuer status if (1) more than 50% of our outstanding voting securities are owned by U.S. residents and (2) a majority of our directors or executive officers are U.S. citizens or residents, or we fail to meet additional requirements necessary to avoid the loss of foreign private issuer status.
In the future, we would lose our foreign private issuer status if (i) more than 50% of our outstanding voting securities are owned by U.S. residents; and (ii) a majority of our directors or executive officers are U.S. citizens or residents, or we fail to meet additional requirements necessary to avoid the loss of foreign private issuer status.
Its interests may not be aligned with the interests of our other shareholders, and it could prevent or cause a change of control or other transactions. Ms. Hong Bee Yin, our Chairman, executive director and chief executive officer, beneficially owns an aggregate of approximately 64% of our issued and outstanding Ordinary Shares.
Her interests may not be aligned with the interests of our other shareholders, and she could prevent or cause a change of control or other transactions. Ms. Hong Bee Yin, our Chairman, Executive Director and Chief Executive Officer, beneficially owns an aggregate of approximately 64% of our issued and outstanding Ordinary Shares.
The relationships that our experienced management team has developed with our customers over the years is important to the future development of our business.
The relationships that our experienced management team has developed with our customers over the years are important to the future development of our business.
As a result, investors in our Ordinary Shares may experience a significant decrease in the value of their Ordinary Shares. 14 The trading price of our Ordinary Shares has been volatile, which could result in substantial losses to investors.
As a result, investors in our Ordinary Shares may experience a significant decrease in the value of their Ordinary Shares. The trading price and trading volume of our Ordinary Shares has been volatile, which could result in substantial losses to investors.
Receipt of the Nasdaq Notification does not result in the immediate delisting of our Ordinary Shares and has no immediate effect on the listing or the trading of our Ordinary Shares on the Nasdaq Capital Market under our symbol “JCSE.” Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), we have a compliance period of 180 calendar days from the date of the Nasdaq Notification, or until May 2, 2023, to regain compliance with the Minimum Bid Requirement.
Receipt of the 2023 Nasdaq Notification does not result in the immediate delisting of our Ordinary Shares and has no immediate effect on the listing or the trading of our Ordinary Shares on the Nasdaq Capital Market under the symbol “JCSE.” Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), we now have a compliance period of 180 calendar days from the date of the 2023 Nasdaq Notification, or until June 11, 2024, to regain compliance with the Minimum Bid Requirement Listing Rule.
Further, if we were no longer listed on Nasdaq, we would be subject to regulations in each state in which we offer our shares. Certain recent initial public offerings of companies with public floats comparable to our public float have experienced extreme volatility that was seemingly unrelated to the underlying performance of the respective company.
If we were no longer listed on Nasdaq, we would be subject to regulations in each state in which we offer our shares. Certain recent initial public offerings of companies with public floats comparable to our public float have experienced extreme volatility that was seemingly unrelated to the underlying performance of their businesses.
We derived a significant portion of our revenue from our largest customer group during the financial years ended December 31, 2020, 2021 and 2022.
We derived a significant portion of our revenue from our largest customer group during the years ended December 31, 2021, 2022 and 2023.
Our average accounts receivable turnover days were approximately 138.5 days and 86.7 days for the financial years ended December 31, 2021 and 2022 respectively. Our customers may be unable to meet their contractual payment obligations to us, either in a timely manner or at all.
Our average accounts receivable turnover days were approximately 86.7 days and 96.7 days for the years ended December 31, 2022 and 2023, respectively. Our customers may be unable to meet their contractual payment obligations to us, either in a timely manner or at all.
We may be unsuccessful in attracting new customers. Our aggregate sales generated from our top five customer groups amounted to approximately 88.4%, 80.6% and 68.1% of our revenue for the financial years ended December 31, 2020, 2021 and 2022, respectively.
We may be unsuccessful in attracting new customers. Our aggregate sales generated from our top five customer groups amounted to approximately 80.6%, 68.1% and 66.1% of our revenue for the years ended December 31, 2021, 2022 and 2023, respectively.
Non-renewal of permits and business licenses would have a material adverse effect on our operations. In order to carry on our business operations, we are required to obtain certain permits, licenses and certificates from various governmental authorities and organizations. As of the date of this Annual Report, we have obtained all material permits and licenses for our business operations.
In order to carry on our business operations, we are required to obtain certain permits, licenses and certificates from various governmental authorities and organizations. As of the date of this Annual Report, we have obtained all material permits and licenses for our business operations.
We have experienced similar volatility, which makes it difficult for prospective investors to assess the value of our Ordinary Shares.
We have experienced similar volatility, which makes it difficult to assess the value of our Ordinary Shares.
On November 3, 2022, we received a written notification from the Listing Qualifications Department of The Nasdaq Stock Market LLC (the “Nasdaq Notification”). The Notification stated that our Ordinary Shares failed to maintain a minimum bid price of $1.00 over the last 30 consecutive business days as required by Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Price Requirement”).
On November 3, 2022, we received a written notification from the Listing Qualifications Department of the Nasdaq Stock Market LLC (the “2022 Nasdaq Notification”) stating that our Ordinary Shares had failed to maintain a minimum bid price of $1.00 over the last 30 consecutive business days as required by Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Requirement Listing Rule”).
Because we are a foreign private issuer under the Exchange Act, we are exempt from certain provisions of the securities rules and regulations in the United States that are applicable to U.S. domestic issuers, including: ● the rules under the Exchange Act requiring the filing of quarterly reports on Form 10-Q or current reports on Form 8-K with the SEC; ● the sections of the Exchange Act regulating the solicitation of proxies, consents or authorizations in respect of a security registered under the Exchange Act; ● the sections of the Exchange Act requiring insiders to file public reports of their share ownership and trading activities and liability for insiders who profit from trades made in a short period of time; and ● the selective disclosure rules by issuers of material non-public information under Regulation FD. 19 We are required to file an annual report on Form 20-F within four months after the end of each fiscal year.
Because we are a foreign private issuer under the Exchange Act, we are exempt from certain provisions of the securities rules and regulations in the United States that are applicable to U.S. domestic issuers, including: ● the rules under the Exchange Act requiring the filing of quarterly reports on Form 10-Q or current reports on Form 8-K with the SEC; ● the sections of the Exchange Act regulating the solicitation of proxies, consents or authorizations in respect of a security registered under the Exchange Act; ● the sections of the Exchange Act requiring insiders to file public reports of their share ownership and trading activities and liability for insiders who profit from trades made in a short period of time; and ● the selective disclosure rules by issuers of material non-public information under Regulation FD.
Further, in the event that we do not regain compliance with the Minimum Bid Price Requirement by May 2, 2023 and are ineligible for an additional grace period, Nasdaq will provide further written notice that our Ordinary Shares are subject to delisting from The Nasdaq Capital Market.
In the event that we do not regain compliance with the Minimum Bid Price Requirement Listing Rule by June 11, 2024, and are ineligible for an additional grace period, Nasdaq will provide further written notice that our Ordinary Shares are subject to delisting from The Nasdaq Capital Market.
Our centralized dishwashing services and general cleaning services business provided centralized dishwashing services to 38, 54 and 60 customer groups during the financial years ended December 31, 2020, 2021 and 2022, respectively, and provided general cleaning services to 7, 7, and 3 customer groups, respectively, during those periods.
Our centralized dishwashing services and general cleaning services business provided centralized dishwashing services to 54, 60 and 123 customer groups during the years ended December 31, 2021, 2022 and 2023, respectively, and provided general cleaning services to 7, 3 and 4 customer groups, respectively, during those periods.
In addition, all of our current directors and officers are nationals and residents of countries other than the United States and substantially all of the assets of these persons are located outside the United States.
We are a Cayman Islands exempted company and substantially all of our assets are located outside of the United States. In addition, all of our current directors and officers are nationals and residents of countries other than the United States and substantially all of the assets of these persons are located outside the United States.
If this were to occur, we could face significant material adverse consequences, including: ● a limited availability of market quotations for our Ordinary Shares; ● reduced liquidity for our Ordinary Shares; ● a determination that our Ordinary Shares are “penny stock,” which will require brokers trading in our shares to adhere to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading market for our Ordinary Shares; ● a limited amount of news and analyst coverage; and ● a decreased ability to issue additional securities or obtain additional financing in the future.
Information on the Company - History of the Company - Recent and Other Developments - Nasdaq Deficiency.” 13 If our Ordinary Shares are delisted from Nasdaq, we could face significant material adverse consequences, including: ● limited availability of market quotations for our Ordinary Shares; ● reduced liquidity for our Ordinary Shares; ● a determination that our Ordinary Shares are “penny stock,” which will require brokers trading in our shares to adhere to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading market for our Ordinary Shares; ● a limited amount of news and analyst coverage; and ● decreased ability to issue additional securities or obtain additional financing in the future.
If an active public market for our Ordinary Shares does not continue, the market price and liquidity of our Ordinary Shares may be materially and adversely affected.
We cannot assure you that an active public market for our Ordinary Shares will continue. If an active public market for our Ordinary Shares does not continue, the market price and liquidity of our Ordinary Shares may be materially and adversely affected.
In the event that we do not regain compliance by May 2, 2023, we may be eligible for additional time to qualify.
In the event that we do not regain compliance by June 11, 2024, we may be eligible for additional time to qualify.
Our sales to that customer group amounted to approximately S$13.2 million, S$4.8 million and S$4.1 million for the financial years ended December 31, 2020, 2021 and 2022, respectively, which accounted for approximately 61.5% 32.7% and 22.0% of our total revenue for the financial years ended December 31, 2020, 2021 and 2022, respectively.
Our sales to that customer group amounted to approximately SGD4.8 million, SGD4.1 million and SGD4.4 million for the years ended December 31, 2021, 2022 and 2023, respectively, which accounted for approximately 32.7%, 22.0% and 24.2% of our total revenue for the years ended December 31, 2021, 2022 and 2023, respectively.
Further, we may be unable to recruit additional staff necessary to implement our business strategies. We incurred employee benefit expenses of approximately S$3.1 million, S$3.2 million and S$4.5 million, representing approximately 14.4%, 21.6% and 24.2% of our total revenue for the financial years ended December 31, 2020, 2021 and 2022, respectively.
Further, we may be unable to recruit additional staff necessary to implement our business strategies. We incurred employee benefit expenses of approximately SGD3.2 million, SGD4.5 million and SGD4.0 million, representing approximately 21.6%, 24.2% and 22.2% of our total revenue for the years ended December 31, 2021, 2022 and 2023, respectively.
As such, in the event we are unable to obtain more orders for both our sale of cleaning systems and other equipment business and our centralized dishwashing and ancillary services business after implementation of such planned investment, our business, financial position and profitability may be adversely affected.
As such, in the event we are unable to obtain more orders for both our sale of cleaning systems and other equipment business and our centralized dishwashing and ancillary services business after implementation of such planned investment, our business, financial position and profitability may be adversely affected. 8 Non-renewal of permits and business licenses would have a material adverse effect on our operations.
As of December 31, 2021 and 2022, we had inventories of S$2.6 million and S$11.9 million, respectively. The higher inventory for the financial year ended December 31, 2022 was primarily the result of purchasing more raw materials in anticipation of slower delivery times due to supply chain issues and increased orders for 2023.
As of December 31, 2022 and 2023, we had inventories of SGD11.9 million and SGD14.1 million, respectively. The higher inventory for the year ended December 31, 2023 was primarily the result of purchasing more raw materials in anticipation of slower delivery times due to supply chain issues and increased orders received for precision cleaning systems.
Risks Related to Our Securities We received a written notification from the Listing Qualifications Department of The Nasdaq Stock Market LLC stating that our Ordinary Shares failed to maintain a minimum bid price of $1.00 over the last 30 consecutive business days as required by Nasdaq Listing Rule 5550(a)(2).
On December 14, 2023, we received another written notification from the Listing Qualifications Department of The Nasdaq Stock Market LLC (the “2023 Nasdaq Notification”) stating that our Ordinary Shares failed to maintain a minimum bid price of $1.00 over the last 30 consecutive business days as required by the Minimum Bid Price Requirement Listing Rule.
We are a non-U.S. corporation and, as such, we will be classified as a passive foreign investment company, which is known as a PFIC, for any taxable year if, for such year, either ● At least 75% of our gross income for the year is passive income; or ● The average percentage of our assets (determined at the end of each quarter) during the taxable year that produce passive income or that are held for the production of passive income is at least 50%. 16 Passive income generally includes dividends, interest, rents, royalties (other than rents or royalties derived from the active conduct of a trade or business) and gains from the disposition of passive assets.
We are a non-U.S. corporation and, as such, we will be classified as a passive foreign investment company, which is known as a PFIC, for any taxable year if, for such year, either ● At least 75% of our gross income for the year is passive income; or ● The average percentage of our assets (determined at the end of each quarter) during the taxable year that produce passive income or that are held for the production of passive income is at least 50%.
Our business is exposed to certain foreign currency exchange risks as our reporting currency is Singapore dollars and our overseas sales and procurement were denominated in United States dollars during the financial years ended December 31, 2020, 2021 and 2022.
We are exposed to risks arising from fluctuations of foreign currency exchange rates. Our business is exposed to certain foreign currency exchange risks as our reporting currency is Singapore dollars and our overseas sales and procurement are denominated in United States dollars during the years ended December 31, 2021, 2022 and 2023.
In particular, sales to our largest customer group, which is principally engaged in the manufacture of HDD, amounted to approximately $13.2 million, S$4.8 million and S$4.1 million, representing approximately 61.5%, 32.7% and 22.0% of our revenue, for the financial years ended December 31, 2020, 2021 and 2022, respectively.
In particular, sales to our largest customer group, which is principally engaged in the manufacture of hard disk drives (“HDD”) and semiconductors, amounted to approximately SGD4.8 million, SGD4.1 million and SGD4.4 million, representing approximately 32.7%, 22.0% and 24.2% of our revenue, for the years ended December 31, 2021, 2022 and 2023, respectively.
Certain corporate governance practices in the Cayman Islands, which is our home country, differ significantly from requirements for companies incorporated in other jurisdictions such as U.S. states. Currently, we plan to rely on home country practice with respect to any corporate governance matter.
Certain corporate governance practices in the Cayman Islands, which is our home country, differ significantly from requirements for companies incorporated in other jurisdictions such as U.S. states. Currently, we do not plan to follow home country practice with respect to most corporate governance matters. However, if we so choose, we may do so in the future.
However, because we are a foreign private issuer, our audit committee is not subject to additional Nasdaq corporate governance requirements applicable to listed U.S. companies, including the requirements to have a minimum of three members and to affirmatively determine that all members are “independent,” using more stringent criteria than those applicable to us as a foreign private issuer.
However, because we are a foreign private issuer, our audit committee is not subject to additional Nasdaq corporate governance requirements applicable to listed U.S. companies, including the requirements to have a minimum of three members and to affirmatively determine that all members are “independent,” using more stringent criteria than those applicable to us as a foreign private issuer. 18 You may face difficulties in protecting your interests, and your ability to protect your rights through U.S. courts may be limited, because we are incorporated under Cayman Islands law.
Our business relies on customer demand for our products. Any reduction in customer demand for our products may have an adverse impact on our product sales, which may in turn lead to inventory obsolescence, decline in inventory value or inventory write-off. In that case, our business, financial condition, results of operations and prospects may be materially and adversely affected.
Our business relies on customer demand for our products. Any reduction in customer demand for our products may have an adverse impact on our product sales, which may in turn lead to inventory obsolescence, decline in inventory value or inventory write-off.
In that event, we may appeal the determination to a Nasdaq hearings panel or consider transferring the listing and trading of our Ordinary Shares to the OTCQX of the OTC Markets. There can be no assurance that we will be able to maintain the listing of our Ordinary Shares on Nasdaq.
In that event, we may appeal the determination to a Nasdaq hearings panel or consider transferring the listing and trading of our ordinary shares to the OTCQX of the OTC Markets. See “Item 4.
Any such events may cause damage or disruption to our business, markets, customers and suppliers, any of which may materially and adversely affect our business, financial condition, results of operations and prospects. 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.
Any such events may cause damage or disruption to our business, markets, customers and suppliers, any of which may materially and adversely affect our business, financial condition, results of operations and prospects. Our business and operations may be materially and adversely affected if there is a major resurgence of COVID-19 or another significant natural disaster or pandemic in the future.
Hong or any of our Directors or executive officers. The loss of Ms. Hong’s services as our Chairman, executive Director and chief executive officer may materially and adversely affect our business, future plans and prospects.
Hong’s services as our Chairman, Executive Director and Chief Executive Officer may materially and adversely affect our business, future plans and prospects.
However, the information we are required to file with or furnish to the SEC will be less extensive and less timely compared to that required to be filed with the SEC by U.S. domestic issuers.
Press releases relating to financial results and material events will also be furnished to the SEC on Form 6-K. However, the information we are required to file with or furnish to the SEC will be less extensive and less timely compared to that required to be filed with the SEC by U.S. domestic issuers.
If we are classified as a passive foreign investment company, United States taxpayers who own our securities may have adverse United States federal income tax consequences.
You may not realize a return on your investment in our shares and you may even lose your entire investment. 16 If we are classified as a passive foreign investment company, United States taxpayers who own our securities may have adverse United States federal income tax consequences.
Our directors are not required under our Amended Memorandum and Articles of Association to make our corporate records available for inspection by our shareholders. This may make it more difficult for you to obtain the information needed to establish any facts necessary for a shareholder resolution or to solicit proxies from other shareholders in connection with a proxy contest.
This may make it more difficult for you to obtain the information needed to establish any facts necessary for a shareholder resolution or to solicit proxies from other shareholders in connection with a proxy contest.
Our revenue and profitability may also be materially affected if the COVID-19 outbreak continues to materially affect the overall economic and market conditions in Singapore and the economic slowdown and/or negative business sentiment could potentially have an adverse impact on our business and operations.
Our revenue and profitability also may be materially affected if any such occurrence materially affects the overall economic and market conditions in Singapore or in any of the other countries in which we have significant operations, as an economic slowdown and/or negative business sentiment could potentially have an adverse impact on our business and operations.
Our reporting obligations as a public company may also place a burden on our management, operational and financial resources and systems for the foreseeable future such that we may be unable to timely complete our evaluation testing and any required remediation. 9 Effective internal control over financial reporting is necessary for us to provide reliable financial reports and, together with adequate disclosure controls and procedures, is designed to prevent fraud.
Our reporting obligations as a public company may also place a burden on our management, operational and financial resources and systems for the foreseeable future such that we may be unable to timely complete our evaluation testing and any required remediation.
Accordingly, our shareholders may be afforded less protection than they otherwise would under rules and regulations applicable to U.S. domestic issuers. 18 As a result of all of the above, shareholders may have more difficulty in protecting their interests in the face of actions taken by our management, members of the board of directors or controlling shareholders than they would as shareholders of a company incorporated in a U.S. state.
As a result of all of the above, shareholders may have more difficulty in protecting their interests in the face of actions taken by our management, members of the board of directors or controlling shareholder than they would as shareholders of a company incorporated in a U.S. state. Certain judgments obtained against us by our shareholders may not be enforceable.
The JOBS Act also provides that an emerging growth company does not need to comply with any new or revised financial accounting standards until such date that a private company is otherwise required to comply with such new or revised accounting standards.
As a result, if we elect not to comply with such auditor attestation requirements, our investors may not have access to certain information they may deem important. 19 The JOBS Act also provides that an emerging growth company does not need to comply with any new or revised financial accounting standards until such date that a private company is otherwise required to comply with such new or revised accounting standards.
If we fail to maintain an effective system of internal controls, we may be unable to accurately or timely report our results of operations or prevent fraud, and investor confidence and the market price of our Ordinary Shares may be materially and adversely affected.
Advances in technology, which permit increasingly large amounts of information to be stored on mobile devices or on third-party “cloud” servers, may increase these risks. 9 If we fail to maintain an effective system of internal controls, we may be unable to accurately or timely report our results of operations or prevent fraud, and investor confidence and the market price of our Ordinary Shares may be materially and adversely affected.
Furthermore, we have a limited number of customer groups for both our sale of cleaning systems and other equipment business and our centralized dishwashing and general cleaning services business. We sold cleaning systems and other equipment to 14, 11 and 14 customer groups during the financial years ended December 31, 2020, 2021 and 2022, respectively.
Furthermore, we have a limited number of customer groups for both our sale of cleaning systems and other equipment business and our centralized dishwashing and general cleaning services business.
Therefore, we intend to maintain a fully independent audit committee in accordance with Rule 10A-3 of the Exchange Act.
However, our audit committee is required to comply with the provisions of Rule 10A-3 of the Exchange Act, which is applicable to U.S. companies listed on Nasdaq. Therefore, we intend to maintain a fully independent audit committee in accordance with Rule 10A-3 of the Exchange Act.
Any of these factors may result in significant and sudden changes in the volume and price at which our shares will trade. In the past, shareholders of public companies have often brought securities class action suits against those companies following periods of instability in the market price of their securities.
In the past, shareholders of public companies have often brought securities class action suits against those companies following periods of instability in the market price of their securities.
Our corporate affairs are governed by our Amended Memorandum and Articles of Association, the Companies Act and the common law of the Cayman Islands.
We are an exempted company incorporated under the laws of the Cayman Islands with limited liability. Our corporate affairs are governed by our Amended and Restated Memorandum of Association (our “Amended and Restated Memorandum”) and our Amended and Restated Articles of Association (our “Amended and Restated Articles”), the Companies Act and the common law of the Cayman Islands.
If securities or industry analysts do not publish research or reports about our business, or if they adversely change their recommendations regarding our Ordinary Shares, the market price for our Ordinary Shares and trading volume could decline. The trading market for our shares will be influenced by research or reports that industry or securities analysts publish about our business.
The trading market for our shares will be influenced by research or reports that industry or securities analysts publish about our business. If one or more analysts downgrade our shares, the market price for our shares would likely decline.
This dependence on our largest customer group has not changed materially and we expect that this customer group will continue to account for a significant portion of our total revenue for a considerable period of time if we cannot expand our customer base and our geographical coverage.
We expect that this customer group will continue to account for a significant portion of our total revenue for a considerable period of time if we cannot expand our customer base and our geographical coverage. There is no assurance that we will be able to maintain the same or achieve even higher sales amounts to that customer group.
Our business is subject to various cybersecurity and other operational risks. We face various cybersecurity and other operational risks relating to our businesses on a daily basis.
In that case, our business, financial condition, results of operations and prospects may be materially and adversely affected. 12 Our business is subject to various cybersecurity and other operational risks. We face various cybersecurity and other operational risks relating to our businesses on a daily basis.
Although we intend to have a majority of independent directors, that may change in the future. 17 As a company incorporated in the Cayman Islands, we are permitted to adopt certain home country practices in relation to corporate governance matters that differ significantly from Nasdaq corporate governance listing standards.
As a company incorporated in the Cayman Islands, we are permitted to adopt certain home country practices in relation to corporate governance matters that differ significantly from Nasdaq corporate governance listing standards. These practices may afford less protection to shareholders than they would enjoy if we complied fully with Nasdaq corporate governance listing standards.
We currently have 15,020,000 Ordinary Shares outstanding, of which 4,490,000 shares are freely tradable without restriction or further registration under the Securities Act. The remaining shares may also be sold in the public market in the future subject to the restrictions in Rule 144 and Rule 701 under the Securities Act and applicable lock-up agreements.
We currently have 5,006,666 Ordinary Shares outstanding, of which 1,806,666 shares are freely tradable without restriction or further registration under the Securities Act. The remaining 3,200,000 shares, all of which are beneficially owned by our controlling shareholder, may also be sold in the public market in the future in accordance with Rule 144 and Rule 701 under the Securities Act.

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Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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In other cases, our customers are generally offered credit terms of 30 to 60 days from delivery. In respect of the sale of other equipment, our customers are generally offered credit terms of 30 to 45 days from the day on which the order is completed.
In other cases, our customers are generally offered credit terms of 30 days to 60 days from delivery. In respect of the sale of other equipment, our customers are generally offered credit terms of 30 days to 45 days from the day on which the order is completed.
Employers renewing a work permit must ensure that the foreign worker’s safety course certificate has a validity period of more than one month on the day of renewal, otherwise the work permit will not be renewed. Infectious Diseases Act The Infectious Diseases Act 1976 of Singapore (the “IDA”) relates to the quarantine and the prevention of infectious diseases.
Employers renewing a work permit must ensure that the foreign worker’s safety course certificate has a validity period of more than one month on the day of renewal, otherwise the work permit will not be renewed. Infectious Diseases Act 1976 The Infectious Diseases Act 1976 of Singapore (the “IDA”) relates to the quarantine and the prevention of infectious diseases.
The levy rates for the manufacturing sector are set out in the table below: Basic skilled Higher skilled Monthly Daily (1) Monthly Daily (1) Quota Tier 1: Up to 25% of the total workforce SGD370 SGD12.17 SGD250 SGD8.22 Tier 2: Above 25% of the total workforce SGD470 SGD15.46 SGD350 SGD11.51 Tier 3: Above 50% to 60% of the total workforce SGD650 SGD21.37 SGD550 SGD18.09 55 The levy rates for the services sector are set out in the table below: Basic skilled Higher skilled Monthly Daily (1) Monthly Daily (1) Tier 1: Up to 10% of the total workforce SGD450 SGD14.80 SGD300 SGD9.87 Tier 2: Above 10% to 25% of the total workforce SGD600 SGD19.73 SGD400 SGD13.16 Tier 3: Above 25% to 35% of the total workforce SGD800 SGD26.31 SGD600 SGD19.73 (1) The daily levy rate only applies to work permit holders who did not work for a full calendar month.
The levy rates for the manufacturing sector are set out in the table below: Basic skilled Higher skilled Monthly Daily (1) Monthly Daily (1) Quota Tier 1: Up to 25% of the total workforce SGD370 SGD12.17 SGD250 SGD8.22 Tier 2: Above 25% of the total workforce SGD470 SGD15.46 SGD350 SGD11.51 Tier 3: Above 50% to 60% of the total workforce SGD650 SGD21.37 SGD550 SGD18.09 The levy rates for the services sector are set out in the table below: Basic skilled Higher skilled Monthly Daily (1) Monthly Daily (1) Tier 1: Up to 10% of the total workforce SGD450 SGD14.80 SGD300 SGD9.87 Tier 2: Above 10% to 25% of the total workforce SGD600 SGD19.73 SGD400 SGD13.16 Tier 3: Above 25% to 35% of the total workforce SGD800 SGD26.31 SGD600 SGD19.73 (1) The daily levy rate only applies to work permit holders who did not work for a full calendar month.
The unit selling price and gross profit margin of each product may fluctuate significantly from order to order, depending on various factors and considerations, including but not limited to the following: ● complexity of the design, particularly for aqueous washing systems and train cleaning systems, as the cleaning systems may include different features and various modules, components and parts, such as ultrasonic wash and rinse stations, spray rinse stations, vacuum oven, cleaning stations with robotic transfer functions, washing baskets, pneumatic control systems, heaters, sensors and pumps; ● the type and availability of the components and materials, such as stainless steel or aluminum, used for the cleaning system or equipment, which would vary in terms of cost price and component lead time; 30 ● technical requirements for the production, including whether the customer’s approval is required for any changes to the processes, products or services for the production and manufacturing process; ● size and dimensions of the cleaning system or equipment, including the overall machine dimension, tank dimension and the size and number of modules, components and parts installed; ● level and number of functionality tests to be conducted, including whether test reports and certificates are to be provided to the customer; ● the customer’s specifications for certain designated suppliers and/or sub-contractors to be used for the production and manufacture of the cleaning system; ● purchase quantity, as certain customers may place orders for more than one unit of the same cleaning system or equipment; ● timeline for the production and manufacture of the cleaning system or equipment; ● provision of installation, testing and commissioning services; ● provision of on-site training by our technical personnel for our customer’s employees; and ● the expected number of units to be placed by our customer in the future.
The unit selling price and gross profit margin of each product may fluctuate significantly from order to order, depending on various factors and considerations, including but not limited to the following: 33 ● complexity of the design, particularly for aqueous washing systems and train cleaning systems, as the cleaning systems may include different features and various modules, components and parts, such as ultrasonic wash and rinse stations, spray rinse stations, vacuum oven, cleaning stations with robotic transfer functions, washing baskets, pneumatic control systems, heaters, sensors and pumps; ● the type and availability of the components and materials, such as stainless steel or aluminum, used for the cleaning system or equipment, which would vary in terms of cost price and component lead time; ● technical requirements for the production, including whether the customer’s approval is required for any changes to the processes, products or services for the production and manufacturing process; ● size and dimensions of the cleaning system or equipment, including the overall machine dimension, tank dimension and the size and number of modules, components and parts installed; ● level and number of functionality tests to be conducted, including whether test reports and certificates are to be provided to the customer; ● the customer’s specifications for certain designated suppliers and/or sub-contractors to be used for the production and manufacture of the cleaning system; ● purchase quantity, as certain customers may place orders for more than one unit of the same cleaning system or equipment; ● timeline for the production and manufacture of the cleaning system or equipment; ● provision of installation, testing and commissioning services; ● provision of on-site training by our technical personnel for our customer’s employees; and ● the expected number of units to be placed by our customer in the future.
Singapore citizens or permanent residents) cleaners employed. 49 Progressive wage model To obtain a cleaning business license, companies must, among other things, submit a progressive wage plan that covers employed resident cleaners (being Singapore citizens and permanent residents) whether they are full-time, part-time or casual employees, and such plan must (a) specify the basic wage for each class of cleaners; and (b) conform to the wage levels specified under the progressive wage model by the Commissioner for Labor, based on the recommendations of the Tripartite Cluster for Cleaners.
Progressive wage model To obtain a cleaning business license, companies must, among other things, submit a progressive wage plan that covers employed resident cleaners (being Singapore citizens and permanent residents) whether they are full-time, part-time or casual employees, and such plan must (a) specify the basic wage for each class of cleaners; and (b) conform to the wage levels specified under the progressive wage model by the Commissioner for Labor, based on the recommendations of the Tripartite Cluster for Cleaners.
Our Directors believe that such customized cleaning systems and collaborations demonstrate our customers’ belief in the strength of our R&D and engineering capabilities. Experienced management team We have an experienced management team, led by Ms. Hong Bee Yin, our Chairman, executive Director, chief executive officer and founder, who has been instrumental in spearheading the growth of our Group. Ms.
Our Directors believe that such customized cleaning systems and collaborations demonstrate our customers’ belief in the strength of our R&D and engineering capabilities. 38 Experienced management team We have an experienced management team, led by Ms. Hong Bee Yin, our Chairman, Executive Director, Chief Executive Officer and founder, who has been instrumental in spearheading the growth of our Group. Ms.
As of the date of this Annual Report, our R&D and engineering team has 11members, six of whom have obtained a bachelor’s degree in engineering. 35 With our strong R&D and engineering team, we are able to design and develop customized cleaning systems catered to our customers’ requirements and specifications.
As of the date of this Annual Report, our R&D and engineering team has 11members, six of whom have obtained a bachelor’s degree in engineering. With our strong R&D and engineering team, we are able to design and develop customized cleaning systems catered to our customers’ requirements and specifications.
Foreign workers with the following certificates will qualify as higher skilled workers: Type of qualification Certificates needed Academic qualifications - Malaysia: Sijil Pelajaran Malaysia - NAS: High school certificates - PRC: Diploma Skills Evaluation Test (“SET”) conducted by the Institute of Technical Education (“ITE”) SET Level 1 or National ITE Certificate (Nitec) Workforce skills qualification Composite Assessment for Generic Manufacturing Market-Based Skills Recognition Framework Earn a fixed monthly salary of at least S$1,600 and worked at least four years in Singapore as a work permit holder Required safety courses For the manufacturing sector, foreign workers who handle metals and machinery in the metalworking industry, such as our foreign workers employed under JCS, must take a Metalworking Safety Orientation Course or an Apply Workplace Safety and Health in Metal Work course before their work permits can be issued, and such courses may be conducted by either the Occupational Safety and Health Training and Promotion Centre or other training institutions approved by the Chief Inspector appointed by the Minister of Manpower.
Foreign workers with the following certificates will qualify as higher skilled workers: 55 Type of qualification Certificates needed Academic qualifications - Malaysia: Sijil Pelajaran Malaysia - NAS: High school certificates - PRC: Diploma Skills Evaluation Test (“SET”) conducted by the Institute of Technical Education (“ITE”) SET Level 1 or National ITE Certificate (Nitec) Workforce skills qualification Composite Assessment for Generic Manufacturing Market-Based Skills Recognition Framework Earn a fixed monthly salary of at least SGD1,600 and worked at least four years in Singapore as a work permit holder Required safety courses For the manufacturing sector, foreign workers who handle metals and machinery in the metalworking industry, such as our foreign workers employed under JCS, must take a Metalworking Safety Orientation Course or an Apply Workplace Safety and Health in Metal Work course before their work permits can be issued, and such courses may be conducted by either the Occupational Safety and Health Training and Promotion Centre or other training institutions approved by the Chief Inspector appointed by the Minister of Manpower.
Other than for our Halal semi-automated washing line, there was a steady increase in the utilization rates of the washing lines at our Hygieia Facility from the year ended December 31, 2020 to the year ended December 31, 2022 as (i) the number of food establishments utilizing our centralized dishwashing services increased; (ii) there was higher footfall and demand for dine-in services at our customers’ food and beverage establishments as a result of the resumption of dine-in services, which resulted in a higher volume of soiled dishware from our customers; and (iii) additional customers contracted for our centralized dishwashing services.
Other than for our Halal semi-automated washing line, there was a steady increase in the utilization rates of the washing lines at our Hygieia Facility from the year ended December 31, 2022 to the year ended December 31, 2023 as (i) the number of food establishments utilizing our centralized dishwashing services increased; (ii) there was higher footfall and demand for dine-in services at our customers’ food and beverage establishments as a result of the resumption of dine-in services, which resulted in a higher volume of soiled dishware from our customers; and (iii) additional customers contracted for our centralized dishwashing services.
We may charge our customers additional fees if extra services are required. In respect of the dishwashing equipment leasing services, the rental of our dishwashing equipment to our customers is determined with reference to prevailing market rates.
We may charge our customers additional fees if extra services are required. 34 In respect of the dishwashing equipment leasing services, the rental of our dishwashing equipment to our customers is determined with reference to prevailing market rates.
Where the amount of the contributions which an employer is liable to pay under the CPFA in respect of any month is not paid within such period as may be prescribed, the employer shall be liable for the payment of interest on the amount for every day the amount remains unpaid commencing from the first day of the month succeeding the month in respect of which the amount is payable and the interest shall be calculated at the rate of 1.5% per month or the sum of S$5, whichever is greater.
Where the amount of the contributions which an employer is liable to pay under the CPFA in respect of any month is not paid within such period as may be prescribed, the employer shall be liable for the payment of interest on the amount for every day the amount remains unpaid commencing from the first day of the month succeeding the month in respect of which the amount is payable and the interest shall be calculated at the rate of 1.5% per month or the sum of SGD5, whichever is greater.
(2) For illustration purposes only, the utilization rate is calculated by dividing the actual processing volume by the processing capacity for the same financial year, which is calculated based on the assumptions set out above.
(2) For illustration purposes only, the utilization rate is calculated by dividing the actual processing volume by the processing capacity for the same year, which is calculated based on the assumptions set out above.
Such on-site cleaning services include, among others, cleaning and maintenance of the entire food and beverage establishment and pest control, as well as the removal and disposal of food waste, litter, rubbish and refuse. 25 We typically enter into contracts for our provision of centralized dishwashing and general cleaning services with our customers for a term of one to two years.
Such on-site cleaning services include, among others, cleaning and maintenance of the entire food and beverage establishment and pest control, as well as the removal and disposal of food waste, litter, rubbish and refuse. 28 We typically enter into contracts for our provision of centralized dishwashing and general cleaning services with our customers for a term of one to two years.
Once we have the necessary supplies on hand, our engineering and technical support team manufactures and assembles the various modules and components, which will comprise the cleaning system or equipment based or the detailed drawings and designs. 27 Our JCS Facility is well-equipped for the fabrication, production, assembly and in-house testing of our cleaning systems and equipment.
Once we have the necessary supplies on hand, our engineering and technical support team manufactures and assembles the various modules and components, which will comprise the cleaning system or equipment based or the detailed drawings and designs. 30 Our JCS Facility is well-equipped for the fabrication, production, assembly and in-house testing of our cleaning systems and equipment.
In this regard, the processing capacity is calculated based on the following assumptions: (i) 20.5 operating hours per working day (excluding equipment cleaning time and workers’ lunch break); and (ii) 361 working days each year for the years ended December 31, 2020, 2021 and 2022 (excluding holidays and regular maintenance).
In this regard, the processing capacity is calculated based on the following assumptions: (i) 20.5 operating hours per working day (excluding equipment cleaning time and workers’ lunch break); and (ii) 361 working days each year for the years ended December 31, 2021, 2022 and 2023 (excluding holidays and regular maintenance).
Hong has over 16 years of experience in the cleaning solutions industry in Singapore and she is primarily responsible for planning and execution of our Group’s business strategies, including product development, as well as managing our Group’s relationships. Our Group is supported by a senior management team with substantial experience in the cleaning solutions industry.
Hong has over 18 years of experience in the cleaning solutions industry in Singapore and she is primarily responsible for planning and execution of our Group’s business strategies, including product development, as well as managing our Group’s relationships. Our Group is supported by a senior management team with substantial experience in the cleaning solutions industry.
Our senior management team includes members such as Mr. Zhao Liang, who is the head of our R&D and engineering team and has over 13 years of experience in the precision cleaning equipment industry. For details of the profiles of the senior management team, please refer to “Management” in this Annual Report.
Our senior management team includes members such as Mr. Zhao Liang, who is the head of our R&D and engineering team and has over 15 years of experience in the precision cleaning equipment industry. For details of the profiles of the senior management team, please refer to “Management” in this Annual Report.
In respect of the provision of dishwashing equipment leasing services, our customers are generally offered credit terms of 30 days upon receipt of invoice. Settlements with our customers who purchase cleaning systems and other equipment from us are mainly in S$ or US$ by way of check or telegraphic transfers.
In respect of the provision of dishwashing equipment leasing services, our customers are generally offered credit terms of 30 days upon receipt of invoice. Settlements with our customers who purchase cleaning systems and other equipment from us are mainly in SGD or US$ by way of check or telegraphic transfers.
You should consult your own advisers regarding the implication of the laws and regulations of Singapore on our business and operations. 48 Laws And Regulations Relating To Our Business In Singapore Our business operations are not subject to any special legislation or regulatory controls other than those generally applicable to companies and businesses incorporated and/or operating in Singapore.
You should consult your own advisers regarding the implication of the laws and regulations of Singapore on our business and operations. Our business operations are not subject to any special legislation or regulatory controls other than those generally applicable to companies and businesses incorporated and/or operating in Singapore.
Our Group also strives to maintain good customer relationships by producing high quality products and providing professional technical support, and hence it is not necessary for our Group to actively engage in significant sales and marketing efforts for maintaining such business relationships with our existing customers.
Our Group also strives to maintain good customer relationships by producing high quality products and providing professional technical support, and therefore it is not necessary for our Group to actively engage in significant sales and marketing efforts for maintaining such business relationships with our existing customers.
Where any employer who has recovered any amount from the monthly wages of an employee in accordance with the CPFA fails to pay the contributions to the CPF within such time as may be prescribed, he will be guilty of an offense and will be liable on conviction for a fine not exceeding S$10,000 or imprisonment for a term not exceeding seven years or both.
Where any employer who has recovered any amount from the monthly wages of an employee in accordance with the CPFA fails to pay the contributions to the CPF within such time as may be prescribed, he will be guilty of an offense and will be liable on conviction for a fine not exceeding SGD10,000 or imprisonment for a term not exceeding seven years or both.
In respect of the sale of related parts used in our cleaning systems, our customers are generally offered credit periods ranging from 30 days to 60 days. In respect of the provision of centralized dishwashing services and general cleaning services, our customers are generally offered credit terms of seven to 30 days upon the receipt of invoice.
In respect of the sale of related parts used in our cleaning systems, our customers are generally offered credit periods ranging from 30 days to 60 days. In respect of the provision of centralized dishwashing services and general cleaning services, our customers are generally offered credit terms of 7 days to 30 days upon the receipt of invoice.
Our customers are corporate groups with their respective group members incorporated or established in various jurisdictions, such as Malaysia, Australia, the U.S., Thailand, Belgium, Philippines, India, South Korea, Taiwan, Japan and the PRC, for our sale of cleaning systems and other equipment business during the financial years ended December 31, 2021 and 2022.
Our customers are corporate groups with their respective group members incorporated or established in various jurisdictions, such as Malaysia, Australia, the U.S., Thailand, Belgium, Philippines, India, South Korea, Taiwan, Japan and the PRC, for our sale of cleaning systems and other equipment business during the years ended December 31, 2022 and 2023.
In addition, as the average utilization rate of certain major machinery and equipment used at our JCS Facility in respect of the production and manufacture of cleaning systems and other equipment during the financial years ended December 31, 2020, 2021 and 2022 generally exceeded 100%, our Group was unable to take on a large number of new orders from new customers.
In addition, as the average utilization rate of certain major machinery and equipment used at our JCS Facility in respect of the production and manufacture of cleaning systems and other equipment during the years ended December 31, 2021, 2022 and 2023 generally exceeded 100%, our Group was unable to take on a large number of new orders from new customers.
The ultimate holding company of Customer Group E is headquartered in the United States with international offices, and is listed on the New York Stock Exchange. (3) Two of the entities in Customer Group C, which are principally engaged as operators of food courts, were our customers for the financial years ended December 31, 2020, 2021 and 2022, respectively.
The ultimate holding company of Customer Group E is headquartered in the United States with international offices, and is listed on the New York Stock Exchange. (3) Two of the entities in Customer Group C, which are principally engaged as operators of food courts, were our customers for the years ended December 31, 2021, 2022 and 2023, respectively.
The ultimate holding company of Customer Group A is headquartered in the United States with international offices, and is listed on Nasdaq. (2) Four, five and four entities in Customer Group B, which are principally engaged in the provision of engine and industrial solutions, were our customers for the financial years ended December 31, 2020, 2021 and 2022, respectively.
The ultimate holding company of Customer Group A is headquartered in the United States with international offices, and is listed on Nasdaq. (2) Four, five and four entities in Customer Group B, which are principally engaged in the provision of engine and industrial solutions, were our customers for the years ended December 31, 2021, 2022 and 2023, respectively.
The profile of our existing customer base, coupled with the stable business relationships we have with our customers, allowed our Group (i) to secure orders from repeat customers, which contributed to approximately 100% of the total sales of our cleaning systems and other equipment for the financial years ended December 31, 2020, 2021 and 2022, and (ii) to gain referrals from our existing customers.
The profile of our existing customer base, coupled with the stable business relationships we have with our customers, allowed our Group (i) to secure orders from repeat customers, which contributed to approximately 100% of the total sales of our cleaning systems and other equipment for the years ended December 31, 2021, 2022 and 2023, and (ii) to gain referrals from our existing customers.
Foreign professionals, managers and executives earning a fixed monthly salary of at least S$4,500 with acceptable qualifications (such as a good university degree, professional qualifications or specialist skills) may apply for an employment pass, whereas older and more experienced candidates will need higher salaries.
Foreign professionals, managers and executives earning a fixed monthly salary of at least SGD4,500 with acceptable qualifications (such as a good university degree, professional qualifications or specialist skills) may apply for an employment pass, whereas older and more experienced candidates will need higher salaries.
Settlements with our customers who use our centralized dishwashing services, general cleaning services and dishwashing equipment leasing services are mainly in S$ by way of check or telegraphic transfers.
Settlements with our customers who use our centralized dishwashing services, general cleaning services and dishwashing equipment leasing services are mainly in SGD by way of check or telegraphic transfers.
For repeat offenders, where a person has on at least one previous occasion been convicted of an offense under the WSHA that causes the death of any person and that person is subsequently convicted of the same offense that causes the death of another person, the court may, in addition to any imprisonment, if prescribed, punish the person, in the case of a body corporate, with a fine not exceeding S$1 million and, in the case of a continuing offense, with a further fine not exceeding S$5,000 for every day or part thereof during which the offense continues after conviction.
For repeat offenders, where a person has on at least one previous occasion been convicted of an offense under the WSHA that causes the death of any person and that person is subsequently convicted of the same offense that causes the death of another person, the court may, in addition to any imprisonment, if prescribed, punish the person, in the case of a body corporate, with a fine not exceeding SGD1 million and, in the case of a continuing offense, with a further fine not exceeding SGD5,000 for every day or part thereof during which the offense continues after conviction.
Further, every employer is required to maintain work injury compensation insurance for all employees engaged in manual work labor regardless of their salary level, as well as all employees doing non-manual work who earn S$2,100 or less a month.
Further, every employer is required to maintain work injury compensation insurance for all employees engaged in manual work labor regardless of their salary level, as well as all employees doing non-manual work who earn SGD2,100 or less a month.
Our Customers During the financial years ended December 31, 2020, 2021 and 2022, our customers were from various industries, including HDD manufacturing, semiconductor manufacturing, food and beverage and public transportation. As of the date of this Annual Report, our customers continue to be from such various industries.
Our Customers During the years ended December 31, 2021, 2022 and 2023, our customers were from various industries, including HDD manufacturing, semiconductor manufacturing, food and beverage and public transportation. As of the date of this Annual Report, our customers continue to be from such various industries.
We completed our first order for a cassette washing system for a customer in the HDD industry. 2007 We registered our first patent in Singapore under JCS for a cleaning process and apparatus. 2010 Hygieia was established. 2011 We completed our first order for a medical cleaning system. 2012 We completed our first order for a dish cleaning system. 2013 Hygieia commenced provision of centralized dishwashing services at a customer’s premises. 2014 We established the Hygieia Facility. 2018 We received an invitation from a statutory board in Singapore to showcase a prototype of a robot floor scrubber for the interior of public trains. 2022 Our Company was listed on Nasdaq.
We completed our first order for a cassette washing system for a customer in the HDD industry. 2007 We registered our first patent in Singapore under JCS for a cleaning process and apparatus. 2010 Hygieia was established. 2011 We completed our first order for a medical cleaning system. 2012 We completed our first order for a dish cleaning system. 2013 Hygieia commenced provision of centralized dishwashing services at a customer’s premises. 2014 We established the Hygieia Facility. 2018 We received an invitation from a statutory board in Singapore to showcase a prototype of a robot floor scrubber for the interior of public trains. 2022 We completed our Initial Public Offering.
Any person who contravenes any of the provisions of the Non-Ionizing Radiation Regulations is guilty of an offense and liable on conviction for a fine not exceeding S$2,000 or imprisonment for a term not exceeding six months or both.
Any person who contravenes any of the provisions of the Non-Ionizing Radiation Regulations is guilty of an offense and liable on conviction for a fine not exceeding SGD2,000 or imprisonment for a term not exceeding six months or both.
Sales And Marketing As of April 24, 2023, our sales and marketing team consisted of one full-time employee based in Singapore. Our Chairman, Ms. Hong Bee Yin, oversees our sales and marketing department. One of our key channels for marketing is through word of mouth as our new customers are usually referred by our existing customers or business contacts.
Sales And Marketing As of April 1, 2024, our sales and marketing team consisted of one full-time employee based in Singapore. Our Chairman, Ms. Hong Bee Yin, oversees our sales and marketing department. One of our key channels for marketing is through word of mouth as our new customers are usually referred by our existing customers or business contacts.
Any person who contravenes the aforementioned requirement under the RPA is guilty of an offense and liable upon conviction for a fine not exceeding S$100,000 or imprisonment for a term not exceeding five years or both.
Any person who contravenes the aforementioned requirement under the RPA is guilty of an offense and liable upon conviction for a fine not exceeding SGD100,000 or imprisonment for a term not exceeding five years or both.
We have maintained stable business relationships with a majority of our major customers. During the financial years ended December 31, 2020, 2021 and 2022, our top five customers included renowned HDD manufacturers, international engine and industrial solutions provider and food and beverage establishment operators in Singapore, three of which have more than 10 years of business relationships with us.
We have maintained stable business relationships with a majority of our major customers. During the years ended December 31, 2021, 2022 and 2023, our top five customers included renowned HDD manufacturers, international engine and industrial solutions provider and food and beverage establishment operators in Singapore, three of which have more than 11 years of business relationships with us.
Licenses and Permits The following licenses are material for our Group’s operations: Description Issuing Authority Expiry Date Issued to License to operate a cleaning business National Environment Agency (NEA) February 26, 2024 Hygieia License / Certificate issued under the Radiation Protection Act NEA June 30, 2023 JCS 44 Certifications As of April 28, 2023, we have received the following certifications: Relevant authority/organization Recipient Relevant list/category Qualification/ License/Grading Date of grant/registration Date of expiry Workplace Safety and Health Council Hygieia BizSAFE Level 3 August 7, 2021 August 10, 2024 Workplace Safety and Health Council JCS BizSAFE Level Star August 23, 2017 July 6, 2023 Islamic Religious Council of Singapore Hygieia Storage management Halal Certificate N/A March 31, 2024 SGS Hygieia Food safety management ISO 22000: 2005 August 26, 2021 August 25, 2024 SOCOTEC Certification International JCS Occupational Health and Safety Management ISO 45001: 2018 July 7, 2017 July 6, 2023 SOCOTEC Certification International JCS Quality management system ISO 9001: 2015 June 23, 2017 June 22, 2023 We intend to apply for the renewal of the above relevant certifications prior to their respective expiry dates and based on past experience, our Directors do not foresee any material difficulties in renewing the certifications of our Group.
Licenses and Permits The following licenses are material for our Group’s operations: Description Issuing Authority Expiry Date Issued to License to operate a cleaning business NEA February 26, 2025 Hygieia License / Certificate issued under the Radiation Protection Act NEA July 2, 2025 JCS 43 Certifications As of April 1, 2024, we have received the following certifications: Relevant authority/organization Recipient Relevant list/category Qualification/ License/Grading Date of grant/registration Date of expiry Workplace Safety and Health Council Hygieia BizSAFE Level 3 August 7, 2021 August 10, 2024 Workplace Safety and Health Council JCS BizSAFE Level Star August 23, 2017 June 22, 2026 Islamic Religious Council of Singapore Hygieia Storage management Halal Certificate N/A March 31, 2025 SGS Hygieia Food safety management ISO 22000: 2005 August 26, 2021 August 25, 2024 SOCOTEC Certification International JCS Occupational Health and Safety Management ISO 45001: 2018 July 7, 2017 June 22, 2026 SOCOTEC Certification International JCS Quality management system ISO 9001: 2015 June 23, 2017 June 22, 2026 We intend to apply for the renewal of the above relevant certifications prior to their respective expiry dates and based on past experience, our directors do not foresee any material difficulties in renewing the certifications of our Group.
Awards and Accreditations Throughout our operating history, our Group has received a number of awards and accreditations in recognition of our performance and quality products and services. The following table sets forth the awards and accreditations we have been granted up to April 24, 2023.
Awards and Accreditations Throughout our operating history, our Group has received a number of awards and accreditations in recognition of our performance and quality products and services. The following table sets forth the awards and accreditations we have been granted up to April 1, 2024.
Employees As of December 31, 2022, we employed a total of 102 persons, who were all located in Singapore, as compared to 90 as of December 31, 2021 and 88 as of December 31, 2020, who were also all located in Singapore. Employees are not covered by collective bargaining agreements.
Employees As of December 31, 2023, we employed a total of 103 persons, who were all located in Singapore, as compared to 102 as of December 31, 2022 and 90 of December 31, 2021, who were also all located in Singapore. Employees are not covered by collective bargaining agreements.
(2) Our sales team conducts site visit at our customer ’ s premises and assesses the services required Our sales team will conduct a site visit at the customer’s premises, to inspect the space and the logistical arrangements to be made for collection of the soiled dishware to our Hygieia Facility and delivery of the cleaned dishware from our Hygieia Facility.
(2) Our sales team conducts site visit at our customer ’ s premises and assesses the services required Our sales team will conduct a site visit at the customer’s premises, to inspect the space and the logistical arrangements to be made for collection of the soiled dishware to our Hygieia Facility and delivery of the cleaned dishware from our Hygieia Facility. 32 (3) Our sales team will provide a price quotation to our customer.
Where an offense has been committed under the CPFA but there are no penalties provided, the offender may be liable for a fine not exceeding S$5,000 or imprisonment for a term not exceeding six months or both, and where the offense is repeated by the same offender, the offender may be liable for a fine not exceeding S$10,000 or imprisonment for a term not exceeding 12 months or both.
Where an offense has been committed under the CPFA but there are no penalties provided, the offender may be liable for a fine not exceeding SGD5,000 or imprisonment for a term not exceeding six months or both, and where the offense is repeated by the same offender, the offender may be liable for a fine not exceeding SGD10,000 or imprisonment for a term not exceeding 12 months or both.
Item 4. Information on the Company History of the Company Our Group’s history can be traced back to November 1999 when JCS-Echigo Pte. Ltd. (“JCS”) was founded by Ms. Hong Bee Yin, our Chairman, Executive Director and Chief Executive Officer. Our Group commenced business in 2005.
Item 4. Information on the Company History of the Company Our Group’s history can be traced back to November 1999 when JCS-Echigo Pte. Ltd. (“JCS”) was founded by Ms. Hong Bee Yin, our Chairman, Executive Director and Chief Executive Officer.
A Singaporean or Permanent Resident employee employed under a contract of service, including the company’s director, is counted as (a) one local employee if they earn the LQS of at least S$1,400 per month; and (b) 0.5 local employee if they earn half the LQS of at least S$700 to S$1,400 per month.
A Singaporean or Permanent Resident employee employed under a contract of service, including the company’s director, is counted as (a) one local employee if they earn the LQS of at least SGD1,400 per month; and (b) 0.5 local employee if they earn half the LQS of at least SGD700 to SGD1,400 per month.
Our cleaning systems and other equipment are mainly sold in Singapore and Malaysia, and we provided centralized dishwashing and ancillary services to customers in Singapore. Top five customers For the financial years ended December 31, 2020, 2021 and 2022, our top five customers accounted for approximately 88.4%, 80.6% and 68.1% of our total revenue, respectively.
Our cleaning systems and other equipment are mainly sold in Singapore and Malaysia, and we provided centralized dishwashing and ancillary services to customers in Singapore. Top five customers For the years ended December 31, 2021, 2022 and 2023, our top five customers accounted for approximately 80.6%, 68.1% and 66.1% of our total revenue, respectively.
After receiving confirmation, we proceed with provision of centralized dishwashing services Based on our customers’ requirements, our sales team will prepare a price quotation, which will take into account, among other things, (a) the size of the food and beverage establishment, number of seats and expected customer turnover, (b) frequency of collection and delivery of dishware on a daily basis; (c) whether thermo stickers are required; (d) whether the services of a third party logistics provider for collection and return of the dishware are required; and (e) whether the services of our sub-contractor for on-site cleaning services are required. 29 After the quotation has been accepted by our customer and the service contract has been entered into, we will proceed with the provision of centralized dishwashing services based on the agreed terms of the contract.
After receiving confirmation, we proceed with provision of centralized dishwashing services Based on our customers’ requirements, our sales team will prepare a price quotation, which will take into account, among other things, (a) the size of the food and beverage establishment, number of seats and expected customer turnover, (b) frequency of collection and delivery of dishware on a daily basis; (c) whether thermo stickers are required; (d) whether the services of a third party logistics provider for collection and return of the dishware are required; and (e) whether the services of our sub-contractor for on-site cleaning services are required.
Any employer who fails to comply with the aforementioned requirements is guilty of an offense and is liable on conviction for a fine not exceeding S$10,000 for the first offense, and for a fine not exceeding S$20,000 for a subsequent offense or imprisonment for a term not exceeding six months or both.
Any employer who fails to comply with the aforementioned requirements is guilty of an offense and is liable on conviction for a fine not exceeding SGD10,000 for the first offense, and for a fine not exceeding SGD20,000 for a subsequent offense or imprisonment for a term not exceeding six months or both.
JCS commenced business in 2005 and is principally engaged in the manufacture and sale of cleaning systems and other equipment. As part of a group reorganization on December 28, 2021, JCS became an indirect wholly-owned subsidiary of our Company. Hygieia Warewashing Pte. Ltd. (“Hygieia”) On December 29, 2010, Hygieia was incorporated in Singapore as a private company with limited liability.
(“JCS”) On November 25, 1999, JCS was incorporated in Singapore as a private company with limited liability. JCS commenced business in 2005 and is principally engaged in the manufacture and sale of cleaning systems and other equipment. As part of a group reorganization on December 28, 2021, JCS became an indirect wholly-owned subsidiary of our Company. Hygieia Warewashing Pte. Ltd.
Any failure to comply with the nuisance order served is an offense and such person is liable upon conviction for a fine not exceeding S$10,000 for the first offense and to a further fine not exceeding S$1,000 for every day during which the offense continues after conviction.
Any failure to comply with the nuisance order served is an offense and such person is liable upon conviction for a fine not exceeding SGD10,000 for the first offense and to a further fine not exceeding SGD1,000 for every day during which the offense continues after conviction.
Business of Our Operating Subsidiaries Overview Our Group is based in Singapore and is principally engaged in (i) the sale of cleaning systems and other equipment; and (ii) the provision of centralized dishwashing and ancillary services.
Our Company was listed on Nasdaq. Business of Our Operating Subsidiaries Overview Our Group is based in Singapore and is principally engaged in: (i) the sale of cleaning systems and other equipment; and (ii) the provision of centralized dishwashing and ancillary services.
The production floor at our JCS Facility has a total usable floor area of approximately 1,470.1 square meters; the total estimated usable floor area which is utilized by our machinery and equipment is approximately 1,219.4 square meters, representing approximately 83.0% of the available space. 39 Hygieia Facility The processing capacity and utilization rates at our Hygieia Facility with respect to our provision of centralized dishwashing services during the fiscal years ended December 31, 2020, 2021 and 2022 are as follows: Year ended December 31, 2020 2021 2022 Actual annual processing (tubs) Annual processing capacity (1) (tubs) Average daily utilization rate (2) (%) Actual annual processing (tubs) Annual processing capacity (1) (tubs) Average daily utilization rate (2) (%) Actual annual processing (tubs) Annual processing capacity (1) (tubs) Average daily utilization rate (2) (%) Halal semi-automated washing line A 84,257 148,010 56.9 91,289 148,010 61.7 101,979 148,010 68.9 Halal semi-automated washing line B 95,237 214,614 44.4 78,119 214,614 36.4 39,489 214,614 18.4 Non-Halal semi-automated washing line C 175,930 310,821 56.6 196,110 310,821 63.1 285,023 310,821 91.7 Non-Halal semi-automated washing line D 45,695 155,410 29.4 69,157 155,410 44.5 108,165 155,410 69.6 (1) For illustration purposes only, the processing capacity is determined by identifying the maximum number of tubs (which will contain the soiled dishware) we can wash per year.
The production floor at our JCS Facility has a total usable floor area of approximately 1,470.1 square meters; the total estimated usable floor area which is utilized by our machinery and equipment is approximately 1,219.4 square meters, representing approximately 83.0% of the available space. 41 Hygieia Facility The processing capacity and utilization rates at our Hygieia Facility with respect to our provision of centralized dishwashing services during the fiscal years ended December 31, 2021, 2022 and 2023 are as follows: Year ended December 31, 2021 2022 2023 Actual annual processing (tubs) Annual processing capacity (1) (tubs) Average daily utilization rate (2) (%) Actual annual processing (tubs) Annual processing capacity (1) (tubs) Average daily utilization rate (2) (%) Actual annual processing (tubs) Annual processing capacity (1) (tubs) Average daily utilization rate (2) (%) Halal semi-automated washing line A 91,289 148,010 61.7 101,979 148,010 68.9 119,148 148,010 80.5 Halal semi-automated washing line B 78,119 214,614 36.4 39,489 214,614 18.4 89,494 214,614 41.7 Non-Halal semi-automated washing line C 196,110 310,821 63.1 285,023 310,821 91.7 271,658 310,821 87.4 Non-Halal semi-automated washing line D 69,157 155,410 44.5 108,165 155,410 69.6 85,942 155,410 55.3 (1) For illustration purposes only, the processing capacity is determined by identifying the maximum number of tubs (which will contain the soiled dishware) we can wash per year.
Further, for the manufacturing sector, the maximum number of years a foreign worker can work in Singapore on a work permit is as follows: Nationality Type of worker Maximum period of employment PRC Basic skilled 14 years PRC Higher skilled 22 years NAS, Malaysia All No maximum period of employment Quota and levies The number of foreign workers that employers can hire under a work pass is limited by the quota or dependency ratio ceiling, and employers pay the requisite levy according to the qualification of the foreign worker employed.
In addition, Malaysian foreign workers must be under 58 years of age and non-Malaysian foreign workers must be under 50 years of age in order to apply for a work permit. 54 Further, for the manufacturing sector, the maximum number of years a foreign worker can work in Singapore on a work permit is as follows: Nationality Type of worker Maximum period of employment PRC Basic skilled 14 years PRC Higher skilled 22 years NAS, Malaysia All No maximum period of employment Quota and levies The number of foreign workers that employers can hire under a work pass is limited by the quota or dependency ratio ceiling, and employers pay the requisite levy according to the qualification of the foreign worker employed.
We intend to achieve this by purchasing upgraded or new production machinery and equipment for our JCS Facility. 37 Real Property A description of our leased real properties is below: Location Usage Lease period Annual Rent (SGD) Approximate gross floor area (sq. ft.) JCS Facility 3 Woodlands Sector 1 Singapore 738361 Manufacturing facility and office To November 15, 2027, with a further term of 30 years from expiry 36,759 31,223.9 Hygieia Facility 17 Woodlands Sector 1 Singapore 738354 Centralized dishwashing facility and office To March 15, 2044 52,020 34,276.7 Production Capacity and Utilization Rate JCS Facility It is difficult to quantify the production capacity and utilization rates of our JCS Facility as the cleaning systems and other equipment manufactured by us at our JCS Facility are customized depending on our customers’ specific requirements, and are therefore of varying sizes, scale and capacity.
Real Property A description of our leased real properties is below: Location Usage Lease period Annual Rent (SGD) Approximate gross floor area (sq. ft.) JCS Facility 3 Woodlands Sector 1 Singapore 738361 Manufacturing facility and office To November 15, 2027, with a further term of 30 years from expiry 36,759 33,785.6 Hygieia Facility 17 Woodlands Sector 1 Singapore 738354 Centralized dishwashing facility and office To March 15, 2044 52,020 34,276.7 40 Production Capacity and Utilization Rate JCS Facility It is difficult to quantify the production capacity and utilization rates of our JCS Facility as the cleaning systems and other equipment manufactured by us at our JCS Facility are customized depending on our customers’ specific requirements, and are therefore of varying sizes, scale and capacity.
Any person who fails to comply with the requirements under the EPM Regulations is guilty of an offense and liable upon conviction for (a) a fine not exceeding S$5,000 on the first conviction, and in the case of a continuing offense, to a further fine not exceeding S$200 for every day or part thereof the offense continues after the conviction; and (b) a fine not exceeding S$10,000 on a subsequent conviction, and in the case of a continuing offense, to a further fine not exceeding S$300 for every day or part thereof during which the offense continues after conviction.
Any person who fails to comply with the requirements under the EPM Regulations is guilty of an offense and liable upon conviction for (a) a fine not exceeding SGD5,000 on the first conviction, and in the case of a continuing offense, to a further fine not exceeding SGD200 for every day or part thereof the offense continues after the conviction; and (b) a fine not exceeding SGD10,000 on a subsequent conviction, and in the case of a continuing offense, to a further fine not exceeding SGD300 for every day or part thereof during which the offense continues after conviction.
The relevant regulatory body is the MOM. 51 Any person who breaches his duty under the WSHA is guilty of an offense and will be liable on conviction, in the case of a body corporate, to a fine not exceeding S$500,000 and if the contravention continues after the conviction, the body corporate shall be guilty of a further offense and will be liable to a fine not exceeding S$5,000 for every day or part thereof during which the offense continues after conviction.
Any person who breaches his duty under the WSHA is guilty of an offense and will be liable on conviction, in the case of a body corporate, to a fine not exceeding SGD500,000 and if the contravention continues after the conviction, the body corporate shall be guilty of a further offense and will be liable to a fine not exceeding SGD5,000 for every day or part thereof during which the offense continues after conviction.
At the point of license application and throughout the license period, at least 50% of the cleaners are to be trained and at the point of license renewal and throughout the license period, 100% of the cleaners are to be trained; and (c) submitting and implementing a progressive wage plan for resident (i.e.
At the point of license application and throughout the license period, at least 50% of the cleaners are to be trained and at the point of license renewal and throughout the license period, 100% of the cleaners are to be trained; and (c) submitting and implementing a progressive wage plan for resident (i.e. Singapore citizens or permanent residents) cleaners employed.
Provision of repair and servicing of cleaning systems and sale of related parts amounted to approximately S$1.2 million, S$1.2 million and S$1.0 million in revenue, representing approximately 5.4%, 7.9% and 5.2% of our total revenue, for the financial years ended December 31, 2020, 2021 and 2022, respectively. 24 We are the sole distributor of STICO anti-slip shoes in Singapore, and our customers are mainly food and beverage establishments in Singapore.
Provision of repair and servicing of cleaning systems and sale of related parts amounted to approximately SGD1.2 million, SGD1.0 million and SGD0.8 million in revenue, representing approximately 7.9%, 5.2% and 4.5% of our total revenue, for the years ended December 31, 2021, 2022 and 2023, respectively. 27 We are the sole distributor of STICO anti-slip shoes in Singapore, and our customers are mainly food and beverage establishments in Singapore.
However, such Part IV provisions only apply to: (a) workmen earning basic monthly salaries of not more than S$4,500; and (b) employees (excluding workmen) earning basic monthly salaries of not more than S$2,600.
However, such Part IV provisions only apply to: (a) workmen earning basic monthly salaries of not more than SGD4,500; and (b) employees (excluding workmen) earning basic monthly salaries of not more than SGD2,600.
The STICO anti-slip shoes are made of ethylene-vinyl acetate (EVA) material and are light with an anti-slip resistance function, making them suitable for wear on wet and oily surfaces. Sale of such STICO anti-slip shoes amounted to approximately S$97,000, S$120,000 and S$159,000 in revenue, recognized as other income, for the financial years ended December 31, 2020, 2021 and 2022, respectively.
The STICO anti-slip shoes are made of ethylene-vinyl acetate (EVA) material and are light with an anti-slip resistance function, making them suitable for wear on wet and oily surfaces. Sale of such STICO anti-slip shoes amounted to approximately SGD120,000, SGD159,000 and SGD92,000 in revenue, recognized as other income, for the years ended December 31, 2021, 2022 and 2023, respectively.
Any person who fails to comply with or contravenes this provision of the EFMA is guilty of an offense and will: (a) be liable on conviction for a fine not less than S$5,000 and not more than S$30,000 or imprisonment for a term not exceeding 12 months or both; and (b) on a second or subsequent conviction: (i) in the case of an individual, be liable for a fine of not less than S$10,000 and not more than S$30,000 and imprisonment for a term of not less than one month and not more than 12 months; or (ii) in any other case, be punished with a fine of not less than S$20,000 and not more than S$60,000.
Any person who fails to comply with or contravenes this provision of the EFMA is guilty of an offense and will: (a) be liable on conviction for a fine not less than SGD5,000 and not more than SGD30,000 or imprisonment for a term not exceeding 12 months or both; and (b) on a second or subsequent conviction: (i) in the case of an individual, be liable for a fine of not less than SGD10,000 and not more than SGD30,000 and imprisonment for a term of not less than one month and not more than 12 months; or (ii) in any other case, be punished with a fine of not less than SGD20,000 and not more than SGD60,000.
The company is headquartered in Singapore and is listed on the Mainboard of the Singapore Exchange Securities Trading Limited. (6) Four entities in Customer Group F, which are principally engaged as ground-handling and in-flight catering services providers, were our customers for the financial years ended December 31, 2020, 2021 and 2022.
(5) Two entities in Customer Group E, which are principally engaged as ground-handling and in-flight catering services providers, were our customers for the years ended December 31, 2021, 2022 and 2023. The parent company of Customer Group F is headquartered in Singapore and is listed on the Mainboard of the Singapore Exchange Securities Trading Limited.
The parent company of Customer Group F is headquartered in Singapore and is listed on the Mainboard of the Singapore Exchange Securities Trading Limited. Competitive Strengths Long and proven track record in precision cleaning in Singapore We have been providing cleaning systems to our customers for over 13 years and have accumulated extensive industry experience.
The parent company of Customer Group F is headquartered in Switzerland and is listed on the Mainboard of the SIX Swiss Exchange. 37 Competitive Strengths Long and proven track record in precision cleaning in Singapore We have been providing cleaning systems to our customers for over 14 years and have accumulated extensive industry experience.
While the focus of our sale of cleaning systems and other equipment business is on precision cleaning, we are also able to design, develop and manufacture other cleaning systems for various industrial end-use applications using our R&D and engineering capabilities.
The product lives of our cleaning systems and other equipment range from two to ten years. 25 While the focus of our sale of cleaning systems and other equipment business is on precision cleaning, we are also able to design, develop and manufacture other cleaning systems for various industrial end-use applications using our R&D and engineering capabilities.
The table below sets forth the revenue generated from our sale of cleaning systems and other equipment by product type during the financial years ended December 31, 2020, 2021 and 2022: 2020 2021 2022 SGD’000 % SGD’000 % SGD’000 % Aqueous washing systems 12,920 81.9 4,757 60.9 5,171 49.3 Plating and cleaning systems - - - - - - Other equipment 2,863 18.1 3,056 39.1 5,311 50.7 Total 15,783 100.0 7,813 100.0 10,482 100.0 23 The table below sets out the features and major types of industrial end-use applications of the different types of cleaning systems: Our cleaning systems are designed and customized based on our customers’ requirements and specifications, and accordingly the cleaning systems that we manufacture and sell are of varying sizes and have different features and functions.
The table below sets forth the revenue generated from our sale of cleaning systems and other equipment by product type during the years ended December 31, 2021, 2022 and 2023: 2021 2022 2023 SGD’000 % SGD’000 % SGD’000 % Aqueous washing systems 4,757 60.9 5,171 49.3 5,600 55.0 Plating and cleaning systems - - - - - - Other equipment 3,056 39.1 5,311 50.7 4,581 45.0 Total 7,813 100.0 10,482 100.0 10,181 100.0 26 The table below sets out the features and major types of industrial end-use applications of the different types of cleaning systems: Our cleaning systems are designed and customized based on our customers’ requirements and specifications, and accordingly the cleaning systems that we manufacture and sell are of varying sizes and have different features and functions.
The shares of Customer Group D’s parent company were listed on the Mainboard of the Singapore Exchange Securities Trading Limited prior to June 5, 2020.
The shares of Customer Group C’s parent company were listed on the Mainboard of the Singapore Exchange Securities Trading Limited prior to June 5, 2020. The company is now privatized.
The Non-Ionizing Radiation Regulations further set out the requirements for (a) ultrasound apparatus, including the requirement that every ultrasound apparatus shall be designed and constructed in such a manner that all marks, labels and signs are permanently affixed thereon and clearly visible and all user controls, meters, lights or other indicators are clearly visible, readily discernible and clearly labelled to indicate their function; and (b) high power lasers, including the requirement that every high power laser shall have a protective housing that prevents human access during operation to laser and collateral radiation that exceed the specified accessible emission limits, a safety interlock for each portion of the protective housing that is designed to be removed or displaced during operation or maintenance, a readily available remote control connector, a key-actuated master control and an emission indicator which provides a visible or audible signal during emission of accessible laser radiation in excess of the specified accessible emission limits.
High power lasers means any laser apparatus from Class 3b and Class 4 based on the classification set out in the Second Schedule of the Non-Ionizing Radiation Regulations, being those emitting visible and/or invisible laser radiation with specified maximum accessible emission levels and those exceeding the accessible emission limits respectively. 50 The Non-Ionizing Radiation Regulations further set out the requirements for (a) ultrasound apparatus, including the requirement that every ultrasound apparatus shall be designed and constructed in such a manner that all marks, labels and signs are permanently affixed thereon and clearly visible and all user controls, meters, lights or other indicators are clearly visible, readily discernible and clearly labeled to indicate their function; and (b) high power lasers, including the requirement that every high power laser shall have a protective housing that prevents human access during operation to laser and collateral radiation that exceed the specified accessible emission limits, a safety interlock for each portion of the protective housing that is designed to be removed or displaced during operation or maintenance, a readily available remote control connector, a key-actuated master control and an emission indicator which provides a visible or audible signal during emission of accessible laser radiation in excess of the specified accessible emission limits.
We are also a leading centralized dishwashing services provider in Singapore. For the financial years ended December 31, 2020, 2021 and 2022, our Group generated approximately S$16.9 million, S$9.0 million and S$11.4 million of revenue from our sale of cleaning systems and other equipment business, representing approximately 79.2%, 60.8% and 61.4% of our total revenue, respectively.
We are also a leading centralized dishwashing services provider in Singapore. For the years ended December 31, 2021, 2022 and 2023, our Group generated approximately SGD9.0 million, SGD11.4 million and SGD11.0 million of revenue from our sale of cleaning systems and other equipment business, representing approximately 60.8%, 61.4% and 61.0% of our total revenue, respectively.
Our Group’s largest customer accounted for approximately 61.5%, 32.7% and 22.0% of our total revenue, respectively, for the corresponding financial year.
Our Group’s largest customer accounted for approximately 32.7%, 22.0% and 24.2% of our total revenue, respectively, for the corresponding year.
During the financial years ended December 31, 2020, 2021 and 2022 and up to the date of this Annual Report, we have not experienced any material disputes with our customers. 32 The following table sets out information on our top five customers for the periods indicated: For the financial year ended December 31, 2020 Customer Country of Incorporation/Establishment Product/Services Year of Commencement of Business Relationship General Payments Credit Terms Transaction Amounts (SGD) % of Total Sales Group A (1) Malaysia, the United States and PRC Cleaning systems 2009 60 days Telegraphic transfer $ 13,163 61.5 Group B (2) Taiwan, South Korea, Thailand, Belgium and the United States Other equipment & related parts 2008 45 days Telegraphic transfer $ 2,361 11.0 Group C (3) Singapore General cleaning services & leasing of dishwashing equipment 2015 30 days Telegraphic transfer $ 1,395 6.5 Group D (4) Singapore General cleaning services & leasing of dishwashing equipment 2016 7 to 30 days Telegraphic transfer $ 1,230 5.8 Group F (6) Singapore Centralized dishwashing & general cleaning services, repair & servicing of cleaning systems 2015 30 or 60 days Telegraphic transfer $ 765 3.6 TOTAL $ 18,914 88.4 For the financial year ended December 31, 2021 Customer Country of Incorporation/Establishment Product/Services Year of Commencement of Business Relationship General Payments Credit Terms Transaction Amounts (SGD) % of Total Sales Group A (1) Malaysia and the United States Cleaning systems 2009 60 days Telegraphic transfer $ 4,833 32.7 Group B (2) South Korea, Thailand, Belgium and the United States Other equipment & related parts 2008 60 days Telegraphic transfer $ 3,188 21.6 Group C (3) Singapore General cleaning services & leasing of dishwashing equipment 2015 30 days Telegraphic transfer $ 1,441 9.8 Group D (4) Singapore General cleaning services & leasing of dishwashing equipment 2016 45 - 60 days Telegraphic transfer $ 1,188 8.0 Group E (5) Singapore Centralized dishwashing & general cleaning services 2015 30 days Telegraphic transfer $ 1,254 8.5 TOTAL $ 11,904 80.6 33 For the financial year ended December 31, 2022 Customer Country of Incorporation/Establishment Product/Services Year of Commencement of Business Relationship General Payments Credit Terms Transaction Amounts (SGD) % of Total Sales Group A (1) Malaysia and the United States Cleaning systems 2009 60 days Telegraphic transfer $ 4,094 22.0 Group B (2) South Korea, Thailand, Belgium and the United States Other equipment & related parts 2008 60 days Telegraphic transfer $ 3,902 20.9 Group C (3) Singapore General cleaning services & leasing of dishwashing equipment 2016 30 days Telegraphic transfer $ 1,801 9.7 Group D (4) Singapore General cleaning services & leasing of dishwashing equipment 2015 45 - 60 days Telegraphic transfer $ 1,522 8.2 Group F (6) Singapore Centralized dishwashing & general cleaning services 2015 30 days Telegraphic transfer $ 1,370 7.3 TOTAL $ 12,689 68.1 (1) Four of the entities in Customer Group A, which are principally engaged in the manufacture of HDD, were our customers for the financial years ended December 31, 2020, 2021 and 2022, respectively.
During the years ended December 31, 2021, 2022 and 2023 and up to the date of this Annual Report, we have not experienced any material disputes with our customers. 35 The following table sets out information on our top five customers for the periods indicated: For the year ended December 31, 2021 Customer Country of Incorporation/Establishment Product/Services Year of Commencement of Business Relationship Credit Terms General Payments Transaction Amounts (SGD’000) % of Total Sales Group A (1) Malaysia and the United States Cleaning systems 2009 60 days Telegraphic transfer $ 4,833 32.7 Group B (2) South Korea, Thailand, Belgium and the United States Other equipment & related parts 2008 60 days Telegraphic transfer $ 3,188 21.6 Group C (3) Singapore General cleaning services & leasing of dishwashing equipment 2015 30 days Telegraphic transfer $ 1,441 9.8 Group D (4) Singapore General cleaning services & leasing of dishwashing equipment 2016 45 - 60 days Telegraphic transfer $ 1,188 8.0 Group E (5) Singapore Centralized dishwashing & general cleaning services 2015 30 days Telegraphic transfer $ 1,254 8.5 TOTAL $ 11,904 80.6 For the year ended December 31, 2022 Customer Country of Incorporation/Establishment Product/Services Year of Commencement of Business Relationship Credit Terms General Payments Transaction Amounts (SGD’000) % of Total Sales Group A (1) Malaysia and the United States Cleaning systems 2009 60 days Telegraphic transfer $ 4,094 22.0 Group B (2) South Korea, Thailand, Belgium and the United States Other equipment & related parts 2008 60 days Telegraphic transfer $ 3,902 20.9 Group C (3) Singapore General cleaning services & leasing of dishwashing equipment 2016 30 days Telegraphic transfer $ 1,801 9.7 Group D (4) Singapore General cleaning services & leasing of dishwashing equipment 2015 45 - 60 days Telegraphic transfer $ 1,522 8.2 Group E (5) Singapore Centralized dishwashing & general cleaning services 2015 30 days Telegraphic transfer $ 1,370 7.3 TOTAL $ 12,689 68.1 36 For the year ended December 31, 2023 Customer Country of Incorporation/Establishment Product/Services Year of Commencement of Business Relationship Credit Terms General Payments Transaction Amounts (SGD’000) % of Total Sales Group A (1) Malaysia and the United States Cleaning systems 2009 90 days Telegraphic transfer $ 1,212 6.7 Group B (2) South Korea, Thailand, Belgium and the United States Other equipment & related parts 2008 90 days Telegraphic transfer $ 3,495 19.4 Group D (4) Singapore General cleaning services & leasing of dishwashing equipment 2015 60 days Telegraphic transfer $ 1,200 6.7 Group E (5) Singapore Centralized dishwashing & general cleaning services 2015 30 days Telegraphic transfer $ 1,642 9.1 Group F (6) Singapore Cleaning systems 2016 60 days Telegraphic transfer $ 4,372 24.2 TOTAL $ 11,921 66.1 (1) Three of the entities in Customer Group A, which are principally engaged in the manufacture of HDD, were our customers for the years ended December 31, 2021, 2022 and 2023, respectively.
The company is now privatized. 34 (4) Three, four and four of the entities in Customer Group D, all of which are principally engaged as operators of food courts and retail malls or health and eldercare service providers, were our customers for the financial years ended December 31, 2020, 2021 and 2022, respectively.
(4) Four, four, three of the entities in Customer Group D, all of which are principally engaged as operators of food courts and retail malls or health and eldercare service providers, were our customers for the years ended December 31, 2021, 2022 and 2023, respectively. The holding entity of Customer Group D is headquartered in Singapore.
Under such circumstances, we did not actively engage in sales and marketing activities to pursue orders from new customers and only maintained a small sales and marketing team during the financial year ended December 31, 2022. 46 The following tables set forth the breakdown of our revenue contributed from the sale of precision and other cleaning systems and equipment from each geographical region during the financial years ended December 31, 2020, 2021 and 2022: Financial Year ended December 31, 2020 Geographical Region Number of Customers Number of Completed Orders Method of Procurement Transaction Amount (SGD’000) % of Total Sales Singapore 4 7 Order from existing customer 398 2.5 1 3 Referral from existing customer 246 1.6 Malaysia 2 46 Order from existing customer 11,672 74.0 Thailand 2 36 Order from existing customer 1,380 8.7 Belgium 1 32 Order from existing customer 1,096 6.9 South Korea 1 7 Order from existing customer 77 0.5 Taiwan 1 1 Order from existing customer 1 0.01 United States 1 1 Order from existing customer 11 0.09 PRC 1 1 Referral from existing customer 902 5.7 Total 14 134 15,783 100.0 Financial Year ended December 31, 2021 Geographical Region Number of Customers Number of Completed Orders Method of Procurement Transaction Amount (SGD’000) % of Total Sales Singapore 4 3 Order from existing customer 83 1.1 Malaysia 1 13 Order from existing customer 4,414 56.5 Thailand 1 42 Order from existing customer 1,559 20.0 Belgium 1 27 Order from existing customer 1,182 15.1 South Korea 1 4 Order from existing customer 73 0.9 Taiwan 1 1 Order from existing customer - - United States 1 6 Order from existing customer 376 4.8 PRC 1 1 Order from existing customer 126 1.6 Total 11 97 7,813 100.0 Financial Year ended December 31, 2022 Geographical Region Number of Customers Number of Completed Orders Method of Procurement Transaction Amount (SGD’000) % of Total Sales Singapore 7 28 Order from existing customer 2,478 23.6 Malaysia 1 14 Order from existing customer 3,896 37.2 Thailand 2 46 Order from existing customer 2,363 22.5 Belgium 1 28 Order from existing customer 1,389 13.2 South Korea 1 6 Order from existing customer 178 1.7 Taiwan 1 2 Order from existing customer 122 1.2 United States 1 3 Order from existing customer 55 0.6 PRC - - Order from existing customer - - Total 14 127 10,481 100.0 47 For the financial years ended December 31, 2021 and 2022, 100% of the total sales to our customers in Singapore were comprised of orders from repeat customers.
Under such circumstances, we did not actively engage in sales and marketing activities to pursue orders from new customers and only maintained a small sales and marketing team during the year ended December 31, 2023. 45 The following tables set forth the breakdown of our revenue contributed from the sale of precision and other cleaning systems and equipment from each geographical region during the years ended December 31, 2021, 2022 and 2023: Year ended December 31, 2021 Geographical Region Number of Customers Number of Completed Orders Method of Procurement Transaction Amount (SGD’000) % of Total Sales Singapore 4 3 Orders from existing customers 83 1.1 Malaysia 1 13 Orders from existing customer 4,414 56.5 Thailand 1 42 Orders from existing customer 1,559 20.0 Belgium 1 27 Orders from existing customer 1,182 15.1 South Korea 1 4 Orders from existing customer 73 0.9 Taiwan 1 1 Orders from existing customer - - United States 1 6 Orders from existing customer 376 4.8 PRC 1 1 Orders from existing customer 126 1.6 Total 11 97 7,813 100.0 Year ended December 31, 2022 Geographical Region Number of Customers Number of Completed Orders Method of Procurement Transaction Amount (SGD’000) % of Total Sales Singapore 7 28 Orders from existing customers 2,478 23.6 Malaysia 1 14 Orders from existing customer 3,896 37.2 Thailand 2 46 Orders from existing customers 2,363 22.5 Belgium 1 28 Orders from existing customer 1,389 13.2 South Korea 1 6 Orders from existing customer 178 1.7 Taiwan 1 2 Orders from existing customer 122 1.2 United States 1 3 Orders from existing customer 55 0.6 PRC - - Orders from existing customer - - Total 14 127 10,481 100.0 46 Year ended December 31, 2023 Geographical Region Number of Customers Number of Completed Orders Method of Procurement Transaction Amount (SGD’000) % of Total Sales Singapore 5 50 Orders from existing customers 5,609 55.1 Malaysia 1 19 Orders from existing customer 758 7.4 Thailand 1 114 Orders from existing customer 1,945 19.1 Belgium 1 51 Orders from existing customer 1,470 14.4 Taiwan 1 2 Orders from existing customer 43 0.5 United States 1 4 Orders from existing customer 356 3.5 Total 10 240 10,181 100.0 For the years ended December 31, 2022 and 2023, 100% of our sales were comprised of orders from existing customers.
On June 7, 2021, the Tripartite Cluster of Cleaners recommended the introduction of enhanced mandatory training requirements under the Skills Framework for Environmental Services and that the number of WSQ training modules be increased as follows: Job Roles Current By December 31, 2022 Beyond 2025 All cleaners Multi-skilled cleaners Mechanical Driver Supervisor Minimum of 1 WSQ module (for licensing conditions) 2 modules in total (1 mandatory workplace safety and health related module and 1 core module that is endorsed by the Tripartite Cluster of Cleaners) 3 modules in total 4 modules in total 50 Environmental Protection and Management Act The Environmental Protection and Management Act 1999 of Singapore and its subsidiary legislation are administered by the NEA, which provide for, among other things, laws relating to pollution control in Singapore through the regulation of various industries.
These workers would either have some prior training in cleaning or have a number of years of relevant working experience, and will be screened before they are allowed to enroll in the AOP. 49 On June 7, 2021, the Tripartite Cluster of Cleaners recommended the introduction of enhanced mandatory training requirements under the Skills Framework for Environmental Services and that the number of WSQ training modules be increased as follows: Job Roles Current By December 31, 2023 Beyond 2025 All cleaners Minimum of 1 WSQ module (for licensing conditions) 2 modules in total (1 mandatory workplace safety and health related module and 1 core module that is endorsed by the Tripartite Cluster of Cleaners) 3 modules in total Multi-skilled cleaners 4 modules in total Mechanical Driver Supervisor Environmental Protection and Management Act The Environmental Protection and Management Act 1999 of Singapore and its subsidiary legislation are administered by the NEA, which provide for, among other things, laws relating to pollution control in Singapore through the regulation of various industries.
In respect of our wholesale sale of STICO anti-slip shoes, the prices are determined with reference to the suggested retail price under our distributorship arrangement and the purchase quantity. 31 Credit period and payment methods In respect of the manufacture and sale of cleaning systems, depending on, among other things, the technical requirements, project amount and size, project costs, relationship with our customers and the credit period offered by our suppliers to our Group in respect of the materials and components used in the cleaning systems, our customers may be required to pay a deposit and settle the remaining purchase price upon delivery and acceptance of the product, according to the terms of the contract.
Credit period and payment methods In respect of the manufacture and sale of cleaning systems, depending on, among other things, the technical requirements, project amount and size, project costs, relationship with our customers and the credit period offered by our suppliers to our Group in respect of the materials and components used in the cleaning systems, our customers may be required to pay a deposit and settle the remaining purchase price upon delivery and acceptance of the product, according to the terms of the contract.
Our Products And Services Our Products The cleaning systems and other equipment we manufacture and sell can be categorized into four different categories, namely aqueous washing systems, plating and cleaning systems, train cleaning systems and other equipment, such as filtration units. The product lives of our cleaning systems and other equipment range from two to ten years.
Our Products and Services Our Products The cleaning systems and other equipment we manufacture and sell can be categorized into four different categories, namely aqueous washing systems, plating and cleaning systems, train cleaning systems and other equipment, such as filtration units.
We are also of the view that the dishwashing services market in Singapore currently has a low penetration rate, and that approximately 80% of the potential food and beverage market remains untapped and relatively consolidated to about 10 players, with four bigger companies, including our Group, dominating the market, and several other smaller players making up the remainder.
These manufacturers benefit from the robust growth of Malaysia’s position as a global hub for semiconductor manufacturing. 44 We are also of the view that the dishwashing services market in Singapore currently has a low penetration rate, and that approximately 80% of the potential food and beverage market remains untapped and relatively consolidated to about 10 players, with four bigger companies, including our Group, dominating the market, and several other smaller players making up the remainder.
Making an incorrect declaration or failing to make a declaration of goods imported into, exported from or transhipped in Singapore will result in being liable on conviction for a fine not exceeding S$10,000, or the equivalent of the amount of the customs duty, excise duty or GST payable, whichever is the greater amount, or imprisonment for a term not exceeding 12 months, or both. 60 Intellectual Property Rights The protection of industrial designs is provided for under the Registered Designs Act 2000 of Singapore.
Making an incorrect declaration or failing to make a declaration of goods imported into, exported from or transhipped in Singapore will result in being liable on conviction for a fine not exceeding SGD10,000, or the equivalent of the amount of the customs duty, excise duty or GST payable, whichever is the greater amount, or imprisonment for a term not exceeding 12 months, or both.
In April 2022, we closed on the sale of 3,020,000 newly issued Ordinary Shares and Triple Business Limited sold 750,000 of our Ordinary Shares in our initial public offering. See “Item 7.
In April 2022, we closed on the sale of 3,020,000 newly issued Ordinary Shares and Triple Business Limited sold 750,000 of our Ordinary Shares in our Initial Public Offering. See “Item 7. Major Shareholders and Related Party Transactions - Major Shareholders” for information on the current shareholdings of our major shareholders.
Any person who contravenes the aforementioned is guilty of an offense and is liable on conviction for a fine not exceeding S$10,000, and in the case of a second or subsequent conviction, for a fine not exceeding S$20,000 or imprisonment for a term not exceeding six months or both. 52 Pursuant to the Workplace Safety and Health (Risk Management) Regulations, the employer in a workplace is supposed to, among other things, conduct a risk assessment in relation to the safety and health risks posed to any person who may be affected by his undertaking in the workplace, take all reasonably practicable steps to eliminate or minimize foreseeable risks, implement measures or safety procedures to address the risks, and to inform workers of the same, maintain records of such risk assessments and measures/safety procedures for a period of not less than three years and submit such records to the CWSH when required by the CWSH from time to time.
Pursuant to the Workplace Safety and Health (Risk Management) Regulations, the employer in a workplace is supposed to, among other things, conduct a risk assessment in relation to the safety and health risks posed to any person who may be affected by his undertaking in the workplace, take all reasonably practicable steps to eliminate or minimize foreseeable risks, implement measures or safety procedures to address the risks, and to inform workers of the same, maintain records of such risk assessments and measures/safety procedures for a period of not less than three years and submit such records to the CWSH when required by the CWSH from time to time.
For the financial years ended December 31, 2020, 2021 and 2022, our Group generated approximately S$5.8 million and S$7.8 million of revenue from our provision of centralized dishwashing and ancillary services business, representing approximately 20.8%, 39.2% and 38.6% of our total revenue, respectively. 22 The portion of our revenue from each business line has not changed substantially through April 30, 2023.
For the years ended December 31, 2021, 2022 and 2023, our Group generated approximately SGD5.8 million, SGD7.8 million and SGD7.0 of revenue from our provision of centralized dishwashing and ancillary services business, representing approximately 39.2%, 38.6% and 39.0% of our total revenue, respectively. The portion of our revenue from each business line has not changed substantially through March 31, 2024.
We are of the view that there is a trend towards consolidation in the wider precision cleaning market by industry players, as companies move towards offering total solutions in the value chain of both cleaning equipment and cleaning services in order to stand out from the competition. 45 We are of the view that the precision cleaning manufacturing industry in Malaysia is highly consolidated, with the top five companies in the industry accounting for more than 80% of industry sales.
We are of the view that there is a trend towards consolidation in the wider precision cleaning market by industry players, as companies move towards offering total solutions in the value chain of both cleaning equipment and cleaning services in order to stand out from the competition.

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Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

96 edited+22 added−15 removed46 unchanged
These uncertainties could have a material adverse effect on our business, results of operations and financial conditions, and affect our ability to remain profitable and achieve business growth. 62 Non-recurring nature of our sale of cleaning systems and other equipment business We design, manufacture and sell cleaning systems and other equipment on an order-by-order basis.
These uncertainties could have a material adverse effect on our business, results of operations and financial conditions, and affect our ability to remain profitable and achieve business growth. Non-recurring nature of our sale of cleaning systems and other equipment business We design, manufacture and sell cleaning systems and other equipment on an order-by-order basis.
As a result, we are exposed to foreign exchange risk as our revenues and results of operations may be affected by fluctuations in the exchange rate between the U.S. dollar and S$. If the S$ depreciates against the U.S. dollar, the value of our S$ revenues, earnings and assets as expressed in our U.S. dollar financial statements will decline.
As a result, we are exposed to foreign exchange risk as our revenues and results of operations may be affected by fluctuations in the exchange rate between the U.S. dollar and SGD. If the SGD depreciates against the U.S. dollar, the value of our SGD revenues, earnings and assets as expressed in our U.S. dollar financial statements will decline.
For contracts with the realization period of less than one year, the guidance provides a practical expedient that permits an entity to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. 79 Revenue recognition policies for each type of revenue stream are as follows: (a) Goods and services sold We recognize revenue for our goods and services sold when we have satisfied a performance obligation by transferring control of a promised good or service to the customer.
For contracts with the realization period of less than one year, the guidance provides a practical expedient that permits an entity to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. 76 Revenue recognition policies for each type of revenue stream are as follows: (a) Goods and services sold We recognize revenue for our goods and services sold when we have satisfied a performance obligation by transferring control of a promised good or service to the customer.
The decrease in revenue in Malaysia for the financial year ended December 31, 2021 was primarily attributable to the decrease in revenue from subsidiaries of a certain customer group in Malaysia of approximately S$8.3 million mainly due to the delivery for the orders received for the sales of precision cleaning machines which will take place in FY2022 as their progress of expansion in production facilities has been disrupted by COVID-19.
The decrease in revenue in Malaysia for the financial year ended December 31, 2021 was primarily attributable to the decrease in revenue from subsidiaries of a certain customer group in Malaysia of approximately SGD8.3 million mainly due to the delivery for the orders received for the sales of precision cleaning machines which will take place in FY2022 as their progress of expansion in production facilities has been disrupted by COVID-19.
Although there was improvement in the average accounts receivable turnover days for the financial year ended December 31, 2022, considering the increase in the balance of accounts receivable as of December 31, 2022, we have further implemented certain procedures to strengthen our credit control.
Although there was improvement in the average accounts receivable turnover days for the year ended December 31, 2023, considering the increase in the balance of accounts receivable as of December 31, 2022, we have further implemented certain procedures to strengthen our credit control.
We generally offer credit periods of 30 to 60 days to our customers in respect of the manufacture and sale of cleaning systems and other equipment, whereas our customers will be offered credit terms of seven days to 30 days in respect of the provision of centralized dishwashing services and general cleaning services.
We generally offer credit periods of 30 days to 60 days to our customers in respect of the manufacture and sale of cleaning systems and other equipment, whereas our customers will be offered credit terms of 7 days to 30 days in respect of the provision of centralized dishwashing services and general cleaning services.
When necessary, we will turn to financial institutions and related parties to obtain short-term funding to cover any liquidity shortage. 80 Foreign Exchange Risk While our reporting currency is the U.S. dollar, almost all of our consolidated revenues and consolidated costs and expenses are denominated in S$. All of our assets are denominated in S$.
When necessary, we will turn to financial institutions and related parties to obtain short-term funding to cover any liquidity shortage. 77 Foreign Exchange Risk While our reporting currency is the U.S. dollar, almost all of our consolidated revenues and consolidated costs and expenses are denominated in SGD. All of our assets are denominated in SGD.
Key Factors Affecting the Results of Our Group’s Operations Our financial condition and results of operation 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 88.4%, 80.6% and 68.1%of our revenue for the financial years ended December 31, 2020, 2021 and 2022, respectively.
Key Factors Affecting the Results of Our Group’s Operations Our financial condition and results of operation 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 80.6%, 68.1% and 66.1% of our revenue for the years ended December 31, 2021, 2022 and 2023, respectively.
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 10-month period up to August 2020, and 10% to 50% of the same in the subsequent seven-month period from September 2020 to March 2021 and further extended to September 2021 with final payout received in March 2022.
Jobs Support Scheme was 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 SGD4,600 of monthly salaries paid to each local employee in a 10-month period up to August 2020, and 10% to 50% of the same in the subsequent seven-month period from September 2020 to March 2021 and further extended to September 2021 with final payout received in March 2022.
During the financial years ended December 31, 2021 and 2022, the credit term offered to our major customers ranged from 30 days to 90 days. For details of the credit terms of our top five customers for the financial years ended December 31, 2021 and 2022, please refer to the section headed ‘‘Business — Our Customers’’ in this Annual Report.
During the years ended December 31, 2022 and 2023, the credit term offered to our major customers ranged from 30 days to 90 days. For details of the credit terms of our top five customers for the years ended December 31, 2022 and 2023, please refer to the section headed ‘‘Business – Our Customers’’ in this Annual Report.
Deferred tax (assets)/liabilities Our deferred tax (assets)/liabilities during the financial years ended December 31, 2021 and 2022 mainly represented the Singapore tax implication on the temporary difference between the tax written down value and the net book value of the property, plant and equipment, which are owned by our Group.
Deferred tax (assets)/liabilities Our deferred tax (assets)/liabilities during the years ended December 31, 2022 and 2023 mainly represented the Singapore tax implication on the temporary difference between the tax written down value and the net book value of the property, plant and equipment, which are owned by our Group.
The following table sets forth the movement in orders backlog for our sale of cleaning systems and other equipment in terms of approximate contract value of orders during the financial years ended December 31, 2020, 2021 and 2022.
The following table sets forth the movement in orders backlog for our sale of cleaning systems and other equipment in terms of approximate contract value of orders during the years ended December 31, 2021, 2022 and 2023.
The decrease in revenue generated from our sale of cleaning systems and other equipment business for the year ended December 31, 2021 was primarily attributable to an approximately S$8.4 million decrease in revenue from subsidiaries of a certain customer group in Malaysia caused by the disruption by COVID-19 of their expansion in production facilities that resulted in the postponement of delivery of their orders.
The decrease in revenue generated from our sale of cleaning systems and other equipment business for the year ended December 31, 2021 was primarily attributable to an approximately SGD8.4 million decrease in revenue from subsidiaries of a certain customer group in Malaysia caused by the disruption by COVlD-19 of their expansion in production facilities that resulted in the postponement of delivery of their orders.
Revenue During the financial years ended December 31, 2020, 2021 and 2022, our revenue was derived from (i) sale of cleaning systems and other equipment business; and (ii) provision of centralized dishwashing and ancillary services business.
Revenue During the years ended December 31, 2021, 2022 and 2023, our revenue was derived from (i) our sale of cleaning systems and other equipment business; and (ii) our provision of centralized dishwashing and ancillary services business.
For the financial year ended December 31, 2021, our net cash used in investing activities was approximately S$0.7 million, primarily due to the purchase of property, plant and equipment of approximately S$0.8 million for replacement of obsolete equipment and partially offset by the proceeds from disposal of plant and equipment of approximately S$0.1 million.
For the year ended December 31, 2021, our net cash used in investing activities was approximately SGD0.7 million, primarily due to the purchase of property, plant and equipment of approximately SGD0.8 million for replacement of obsolete equipment and partially offset by the proceeds from disposal of plant and equipment of approximately SGD0.1 million.
The effect of these factors was partially mitigated by (i) the increase in inventories of approximately S$1.2 million; and (ii) the decrease in accounts payable, accruals and other current liabilities of approximately S$1.5 million.
The effect of these factors was partially mitigated by (i) the increase in inventories of approximately SGD1.2 million; and (ii) the decrease in accounts payable, accruals and other current liabilities of approximately SGD1.5 million.
The government capability development grant for the financial year ended December 31, 2022, is a financial support from the Singapore government to support the capabilities in development of autonomous and robotic products. Interest expense Our interest expense arose from lease liabilities and secured bank loans.
The government capability development grant for the years ended December 31, 2023 and December 31, 2022 is a financial support from the Singapore Government to support the capabilities in development of autonomous and robotic products. 66 Interest expense Our interest expense arose from lease liabilities and secured bank loans.
During the financial years ended December 31, 2020, 2021 and 2022, the customers for our cleaning systems and other equipment were mainly located in Singapore and Malaysia.
During the years ended December 31, 2021, 2022 and 2023, the customers for our cleaning systems and other equipment were mainly located in Singapore and Malaysia.
For the financial year ended December 31, 2022, our net cash used in investing activities was approximately S$0.8 million, primarily due to the purchase of property, plant and equipment of approximately S$0.8 million for replacement of obsolete equipment.
For the year ended December 31, 2022, our net cash used in investing activities was approximately SGD0.8 million, primarily due to the purchase of property, plant and equipment of approximately SGD0.8 million for replacement of obsolete equipment.
During the financial years ended December 31, 2020, 2021 and 2022, the majority of our raw materials were commonly available from the market and their prices have been are affected by the market forces. We monitor supply and cost trends of these raw materials and take appropriate actions to obtain the materials we need for production.
During the years ended December 31, 2021, 2022 and 2023, the majority of our raw materials were commonly available from the marketplace, and their prices are affected by market forces. We monitor supply and cost trends of these raw materials and take appropriate actions to obtain the materials we need for production.
Office supplies and upkeep expenses mainly represented office supplies, cleaning cost and the relevant utilities expenses such as electricity and water. Travelling and entertainment mainly represented expenditure for business travel and cost incurred for social gatherings and refreshments for our staff.
Office supplies and upkeep expenses mainly represented office supplies, cleaning cost and the relevant utilities expenses such as electricity and water. Travel and entertainment mainly represented expenditures for business travel and costs incurred for social gatherings and refreshments for our staff.
The effect of these factors was offset by (i) the increase in accounts receivable of approximately S$2.5 million; and (ii) the increase in inventories of approximately S$9.3 million was primarily the result of purchasing more raw materials in anticipation of slower delivery times due to supply chain issues and increased orders for 2023.
The effect of these factors was offset by (i) the increase in accounts receivable of approximately SGD2.5 million; and (ii) the increase in inventories of approximately SGD9.3 million, which was primarily the result of purchasing more raw materials in anticipation of slower delivery times due to supply chain issues and increased orders for 2023.
Malaysia The decrease in revenue in Malaysia for the financial year ended December 31, 2022 was primarily attributable to the decrease in revenue from subsidiaries of a certain customer group in Malaysia of approximately S$0.5 million.
The decrease in revenue in Malaysia for the year ended December 31, 2022 was primarily attributable to a decrease in revenue from subsidiaries of a certain customer group in Malaysia of approximately SGD0.5 million.
For the same financial years, our revenue generated from customers located in other countries accounted for approximately 16.8%, 23.3% and 22.7% of our total revenue, respectively. 64 Revenue by geographical locations Our Group’s provision of centralized dishwashing and ancillary services business is located in Singapore.
For the same years, our revenue generated from customers located in other countries accounted for approximately 23.3%, 22.7% and 21.4% of our total revenue, respectively. Revenue by geographical locations Our Group’s provision of centralized dishwashing and ancillary services business is located in Singapore.
Wholesale sales of STICO anti-slip shoes represented the income generated from wholesale of STICO anti-slip shoes mainly to food and beverage establishments in Singapore, which amounted to approximately S$0.1 million, S$0.1 million and S$0.2 million for the financial years ended December 31, 2020, 2021 and 2022, respectively.
Wholesale sales of STICO anti-slip shoes represented the income generated from wholesale of STICO anti-slip shoes mainly to food and beverage establishments in Singapore, which amounted to approximately SGD0.1 million, SGD0.2 million and SGD0.1 million for the years ended December 31, 2021, 2022 and 2023, respectively.
The increase was mainly attributable to the increase in revenue generated from our sale of cleaning systems and other equipment business of approximately S$2.5 million and increase in revenue generated from our provision of centralized dishwashing and ancillary services business of approximately S$1.4 million.
The increase was mainly attributable to the increase in revenue generated from our sale of cleaning systems and other equipment business of approximately SGD2.5 million and increase in revenue generated from our provision of centralized dishwashing and ancillary services business of approximately SGD1.4 million.
The following table sets forth our average accounts receivable turnover days for the financial years ended December 31, 2020 and 2021: Financial Year ended December 31, 2021 2022 Average accounts receivable turnover days (1) 138.5 86.7 (1) Average accounts receivable turnover days is calculated as the average of the beginning and ending of accounts receivable balance for the respective year divided by revenue for the respective year and multiplied the number of days in the respective year.
The following table sets forth our average accounts receivable turnover days for the years ended December 31, 2022 and 2023: Year ended December 31, 2022 2023 Average accounts receivable turnover days (1) 86.7 96.7 (1) Average accounts receivable turnover days is calculated as the average of the beginning and ending of accounts receivable balance for the respective year divided by revenue for the respective year and multiplied the number of days in the respective year.
The decrease in our total revenue by approximately S$6.6 million or 31.0% to approximately S$14.8 million for the financial year ended December 31, 2021 from approximately S$21.4 million for the financial year ended December 31, 2020 was mainly attributable to the decrease in revenue generated from our sale of cleaning systems and other equipment business of approximately S$8.0 million, while partially offset by the increase in revenue generated from our provision of centralized dishwashing and ancillary services business of approximately S$1.3 million.
The decrease in our total revenue by approximately SGD6.6 million or 31.0% to approximately SGD14.8 million for the financial year ended December 31, 2021 from approximately SGD21.4 million for the financial year ended December 31, 2020 was mainly attributable to the decrease in revenue generated from our sale of cleaning systems and other equipment business of approximately SGD8.0 million, while partially offset by the increase in revenue generated from our provision of centralized dishwashing and ancillary services business of approximately SGD1.3 million.
Singapore The increase in revenue in Singapore for the financial year ended December 31, 2022 was mainly due to the increase in revenue generated from sales of precision and other cleaning systems and equipment from our existing and new customers by approximately S$2.4 million and provision of centralized dishwashing and general cleaning services by approximately S$1.4 million attributable to the recovery of business from the negative impact of COVID-19 pandemic. 65 The increase in revenue in Singapore for the financial year ended December 31, 2021 was mainly due to the increase in revenue generated from provision of centralized dishwashing and general cleaning services by approximately S$1.3 million.
The increase in revenue in Singapore for the year ended December 31, 2022 was mainly due to the increase in revenue generated from sales of precision and other cleaning systems and equipment from our existing and new customers by approximately SGD2.4 million and provision of centralized dishwashing and general cleaning services by approximately SGD1.4 million attributable to the recovery of business from the negative impact of COVID-19 pandemic.
For the financial year ended December 31, 2021, our net cash generated from operating activities was approximately S$3.4 million, which primarily reflected our profit before tax of approximately S$2,000, as positively adjusted by (i) the non-cash depreciation of property, plant and equipment of approximately S$0.6 million; and (ii) the decrease in accounts receivable of approximately S$5.5 million.
For the year ended December 31, 2021, our net cash generated from operating activities was approximately SGD3.4 million, which primarily reflected our profit before tax of approximately SGD2,000, as positively adjusted by (i) the non-cash depreciation of property, plant and equipment of approximately SGD0.6 million; and (ii) the decrease in accounts receivable of approximately SGD5.5 million.
The slight increase in promotion and marketing expenses for the financial year ended December 31, 2021 was primarily attributable to an increase in online marketing activities. 67 General and administrative expenses Our general and administrative expenses primarily consist of (i) staff cost; (ii) depreciation; (iii) office supplies and upkeep expenses; (iv) travelling and entertainment; (v) legal and professional fees; (vi) property and related expenses; (vii) Directors’ and officers’ liability insurance and (viii) miscellaneous expenses.
The slight increase in promotion and marketing expenses for the financial year ended December 31, 2021 was primarily attributable to an increase in online marketing activities. 64 General and administrative expenses Our general and administrative expenses primarily consist of (i) staff cost; (ii) depreciation; (iii) office supplies and upkeep expenses; (iv) travelling and entertainment; (v) legal and professional fees; (vi) corporate secretarial and administrative fees; (vii) Nasdaq annual listing fee; (viii) directors’ and officers’ liability insurance; and (ix) miscellaneous expenses.
Our Group did not have any material default in payment of accounts payable during the financial years ended December 31, 2021 and 2022. Accruals Accruals mainly represented expenses related to our listing of our Ordinary Shares, salaries and bonus. As of December 31, 2021, our Group’s accruals amounted to approximately S$0.4 million.
Our Group did not have any material default in payment of accounts payable during the years ended December 31, 2022 and 2023. Accruals Accruals mainly represented expenses related to our listing of our Ordinary Shares, salaries and bonus. As of December 31, 2022, our Group’s accruals amounted to approximately SGD0.8 million.
The following table sets forth the breakdown of our income tax for the financial years ended December 31, 2020, 2021 and 2022: Financial Year ended December 31, 2020 2021 2022 SGD’000 SGD’000 SGD’000 Current tax expense 534 37 289 Deferred tax 84 (37 ) (54 ) Total 618 - 235 Pursuant to the rules and regulations of the Cayman Islands and the BVI, our Group is not subject to any income tax in the Cayman Islands and the BVI.
The following table sets forth the breakdown of our income tax for the years ended December 31, 2021, 2022 and 2023: Year ended December 31, 2021 2022 2023 SGD’000 SGD’000 SGD’000 Current tax expense 37 289 158 Deferred tax (37 ) (54 ) (47 ) Total - 235 111 Pursuant to the rules and regulations of the Cayman Islands and the BVI, our Group is not subject to any income tax in the Cayman Islands and the BVI.
Our Group had no tax obligation arising from other jurisdictions during the financial years ended December 31, 2020, 2021 and 2022. During the financial years ended December 31, 2020, 2021 and 2022, our Group had no material dispute or unresolved tax issues with the relevant tax authorities.
Our Group had no tax obligation arising from any other jurisdiction during the years ended December 31, 2021, 2022 and 2023. During the years ended December 31, 2021, 2022 and 2023, our Group had no material dispute or unresolved tax issues with the relevant tax authorities.
For the financial year ended December 31, 2022, our net cash used in operating activities was approximately S$5.2 million, which primarily reflected our net income of approximately S$1.2 million, as adjusted positively by (i) the non-cash depreciation of property, plant and equipment of approximately S$0.7 million; and (ii) the increase in accounts payable, accruals and other current liabilities of approximately S$4.7 million.
For the year ended December 31, 2022, our net cash used in operating activities was approximately SGD5.2 million, which primarily reflected our net income of approximately SGD1.2 million, as adjusted positively by (i) the non-cash depreciation of property, plant and equipment of approximately SGD0.7 million; and (ii) the increase in accounts payable, accruals and other current liabilities of approximately SGD4.7 million.
The increase for the financial year ended December 31, 2022 was mainly due to the increase in transportation expenses for overseas business trips to customers’ sites.
The increase for the year ended December 31, 2023 was mainly due to increased participation in overseas exhibitions. The increase for the year ended December 31, 2022 was mainly due to the increase in transportation expenses for overseas business trips to customers’ sites.
Our average accounts payable turnover days remained relatively within credit term and amounted to approximately 50.0 days for the financial year ended December 31, 2022. As of December 31, 2022, our accounts payable as of December 31, 2021 have been fully settled.
Our average accounts payable turnover days remained relatively within credit term and amounted to approximately 42.4 days for the year ended December 31, 2023. As of December 31, 2023, our accounts payable as of December 31, 2022 have been fully settled.
Bank indebtedness As of December 31, 2021, our bank indebtedness equaled an aggregate of S$9.9 million, of which S$9.7 million is denominated in Singapore dollars and bears interest at a variable rate ranging from 1.25% to 1.5% above the Singapore Interbank Offered Rate (“SIBOR”) and S$0.2 million is denominated in US dollars and bears interest at 1.25% above the London Interbank Offer Rate (“LIBOR”).
As of December 31, 2023, our bank indebtedness equaled an aggregate of SGD8.0 million, of which SGD7.8 million is denominated in Singapore dollars and bears interest at a variable rate ranging from 1.25% to 1.5% above the Singapore Interbank Offered Rate (“SIBOR”) and SGD0.1 million is denominated in US dollars and bears interest at 1.25% above the London Interbank Offer Rate (“LIBOR”).
Other countries The increase in revenue in other countries for the financial year ended December 31, 2022 was mainly due to the increase in orders from an existing customer in Thailand.
Other countries The marginal decrease in revenue in other countries for the year ended December 31, 2023 was mainly due to a decrease in orders from an existing customer in Thailand and the increase in revenue in other countries for the year ended December 31, 2022 was mainly due to an increase in orders from an existing customer in Thailand.
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, 2021 2022 SGD’000 SGD’000 Within 30 days 1,511 3,094 Between 31 and 60 days 587 1,683 Between 61 and 90 days 282 270 More than 90 days 840 588 Total accounts receivable, net 3,220 5,635 Movements in the provision for impairment of accounts receivable are as follows: As of December 31, 2021 2022 SGD’000 SGD’000 Opening balance 82 34 (Reversal)/provision of loss allowance (48 ) - Closing balance 34 34 74 We have a policy for determining the allowance for impairment based on the evaluation of collectability and ageing 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, 2022 2023 SGD’000 SGD’000 Within 30 days 3,094 3,923 Between 31 and 60 days 1,683 758 Between 61 and 90 days 270 38 More than 90 days 588 56 Total accounts receivable, net 5,635 4,775 71 Movements in the provision for impairment of accounts receivable are as follows: As of December 31, 2022 2023 SGD’000 SGD’000 Opening balance 34 34 (Reversal)/provision of loss allowance - (11 ) Closing balance 34 23 We have a policy for determining the allowance for impairment based on the evaluation of collectability and ageing analysis of accounts receivable and on management’s judgment, including the change in credit quality, the past collection history of each customer and the current market condition.
In particular, sales to our largest customer amounted to approximately S$13.2 million, S$4.8 million and S$4.1 million, representing approximately 61.5%, 32.7% and 22.0% of our revenue for the financial years ended December 31, 2020, 2021 and 2022, respectively.
In particular, sales to our largest customer amounted to approximately SGD4.8 million, SGD4.1 million and SGD4.4 million, representing approximately 32.7%, 22.0% and 24.2% of our revenue for the years ended December 31, 2021, 2022 and 2023, respectively.
For the financial years ended December 31, 2020, 2021 and 2022, approximately 25.8%, 43.6% and 54.4% of our total revenue, respectively, was generated from customers located in Singapore and approximately 57.4%, 33.1% and 22.9% of our total revenue, respectively, was generated from customers located in Malaysia.
For the years ended December 31, 2021, 2022 and 2023, approximately 43.6%, 54.4% and 73.0% of our total revenue, respectively, was generated from customers located in Singapore and approximately 33.1%, 22.9% and 5.6% of our total revenue, respectively, was generated from customers located in Malaysia.
Net Income for the year As a result of the foregoing, our net income for the year amounted to approximately S$1.8 million, S$2,000 and S$1.2 million for the financial years ended December 31, 2020, 2021 and 2022, respectively. Liquidity and Capital Resources Our liquidity and working capital requirements primarily related to our operating expenses.
Net Income for the year As a result of the foregoing, our net income for the year amounted to approximately SGD2,000, SGD1.2 million and SGD0.5 million for the years ended December 31, 2021, 2022 and 2023, respectively. Liquidity and Capital Resources Our liquidity and working capital requirements primarily related to our operating expenses.
Cost of revenues During the financial years ended December 31, 2020, 2021 and 2022, our Group’s cost of revenues was mainly comprised of raw materials costs, labor costs, sub-contracting costs and production overhead. For the financial years ended December 31, 2020, 2021 and 2022, our cost of revenues amounted to approximately S$15.5 million, S$12.4 million and S$13.5 million, respectively.
Cost of revenues During the years ended December 31, 2021, 2022 and 2023, our Group’s cost of revenues was mainly comprised of raw materials costs, labor costs, sub-contracting costs and production overhead. For the years ended December 31, 2021, 2022 and 2023, our cost of revenues amounted to approximately SGD12.4 million, SGD13.5 million and SGD13.7 million, respectively.
We also have provided centralized dishwashing services since 2013 and general cleaning services since 2015 mainly for food and beverage establishments in Singapore. For the financial years ended December 31, 2020, 2021 and 2022, our revenue amounted to approximately S21.4 million, S$14.8 million and S$18.6 million, respectively.
We also have provided centralized dishwashing services since 2013 and general cleaning services since 2015 mainly for food and beverage establishments in Singapore. For the years ended December 31, 2021, 2022 and 2023, our revenue amounted to approximately SGD14.8 million, SGD18.6 million and SGD18.0 million, respectively.
The following table sets forth the breakdown of our other income for these periods: Financial Year ended December 31, 2020 2021 2022 SGD’000 SGD’000 SGD’000 Wholesale sales of STICO anti-slip shoes 97 120 159 Impairment loss reversed - 49 - Jobs Support Scheme 320 87 10 Jobs Growth Incentive - 72 72 Government capability development grant - 150 Gain on disposal of plant and equipment - 71 - Others (1) 336 308 151 Total 753 707 542 (1) Others mainly consists of sale of scrap materials, other government incentives and other miscellaneous income.
The following table sets forth the breakdown of our other income for these periods: Year ended December 31, 2021 2022 2023 SGD’000 SGD’000 SGD’000 Interest income - - 175 Wholesale sales of STICO anti-slip shoes 120 159 92 Impairment loss reversed 49 - - Jobs Support Scheme 87 10 - Jobs Growth Incentive 72 72 20 Progressive Wage Credit Scheme - - 55 Government capability development grant - 150 214 Gain on disposal of plant and equipment 71 - - Others (1) 308 151 172 Total 707 542 728 (1) Others mainly consist of sale of scrap materials, other government incentives and other miscellaneous income.
Historically, we have met our working capital and other liquidity requirements primarily through a combination of cash generated from our operations and loans from banking facilities.
We have met our working capital and other liquidity requirements primarily through a combination of cash generated from our operations, loans from banking facilities and the net proceeds from our initial public offering.
S$5.5 million of our bank indebtedness constitutes current liability and S3.9 million constitutes non-current liability. 77 Warranty liabilities Our warranty liabilities during the financial years ended December 31, 2021 and 2022 mainly represented the provision for warranty for machines sold, which usually covers a 12-month period from the date on which the machines are delivered.
SGD4.2 million of our bank indebtedness constitutes current liability and SGD3.8 million constitutes non-current liability. Warranty liabilities Our warranty liabilities during the years ended December 31, 2022 and 2023 mainly represented the provision for warranty for machines sold, which usually covers a 12-month period from the date on which the machines are delivered.
As of December 31, 2022, our bank indebtedness equaled an aggregate of S$9.4 million of which S$9.2 million is denominated in Singapore dollars and bears interest at a variable rate ranging from 1.25% to 1.5% above the Singapore Interbank Offered Rate (“SIBOR”) and S$0.2 million is denominated in US dollars and bears interest at 1.25% above the London Interbank Offer Rate (“LIBOR”).
Our contract liabilities amounted to approximately SGD4.3 million and SGD7.0 million as of December 31, 2022 and 2023, respectively. 74 Bank indebtedness As of December 31, 2022, our bank indebtedness equaled an aggregate of SGD9.4 million of which SGD9.2 million is denominated in Singapore dollars and bears interest at a variable rate ranging from 1.25% to 1.5% above the Singapore Interbank Offered Rate (“SIBOR”) and SGD0.2 million is denominated in US dollars and bears interest at 1.25% above the London Interbank Offer Rate (“LIBOR”).
Cash flows The following table summarizes our cash flows for the financial years ended December 31, 2020, 2021 and 2022: Financial Year ended December 31, 2020 2021 2022 2022 SGD’000 SGD’000 SGD’000 US$’000 Cash and cash equivalents at beginning of the year 843 550 1,108 827 Net cash generated from/(used in) operating activities 1,114 3,373 (5,239 ) (3,908 ) Net cash used in investing activities (280 ) (717 ) (797 ) (595 ) Net cash (used in)/generated from financing activities (1,181 ) (2,082 ) 11,487 8,570 Foreign currency effect 54 (16 ) 2 1 Net change in cash and cash equivalents (293 ) 558 5,453 4,068 Cash and cash equivalents at end of the year 550 1,108 6,561 4,895 Cash flows from operating activities During the financial years ended December 31, 2020, 2021 and 2022, the cash inflows from our operating activities were primarily derived from the revenue generated from our sale of cleaning systems and other equipment and provision of centralized dishwashing and ancillary services, whereas the cash outflows for our operating activities mainly comprised the purchase of raw materials, sub-contracting fees, staff costs and administrative expenses.
Cash flows The following table summarizes our cash flows for the years ended December 31, 2021, 2022 and 2023: Year ended December 31, 2021 2022 2023 2023 SGD’000 SGD’000 SGD’000 US$’000 Cash and cash equivalents at beginning of the year 550 1,108 6,561 4,973 Net cash generated from/(used in) operating activities 3,373 (5,239 ) 1,375 1,044 Net cash used in investing activities (717 ) (797 ) (211 ) (160 ) Net cash (used in)/generated from financing activities (2,082 ) 11,487 (2,567 ) (1,947 ) Foreign currency effect (16 ) 2 (69 ) (52 ) Net change in cash and cash equivalents 558 5,453 (1,472 ) (1,115 ) Cash and cash equivalents at end of the year 1,108 6,561 5,089 3,858 69 Cash flows from operating activities During the years ended December 31, 2021, 2022 and 2023, the cash inflows from our operating activities were primarily derived from the revenue generated from our sale of cleaning systems and other equipment and provision of centralized dishwashing and ancillary services, whereas the cash outflows for our operating activities mainly comprised the purchase of raw materials, sub-contracting fees, staff costs and administrative expenses.
Financial Year ended December 31, 2020 Financial Year ended December 31, 2021 Financial Year ended December 31, 2022 (SGD’000) (SGD’000) (SGD’000) Outstanding contract value as of beginning of year (1) 3,668 5,820 19,997 New contract value for the year 17,995 22,208 19,515 Revenue recognized for the year 15,783 8,031 10,462 Outstanding contract value as of year end (2) 5,820 19,997 29,050 (1) Outstanding contract value as of beginning of year represents the contract value of orders which were not completed as of the beginning of the relevant year.
Year ended December 31, 2021 Year ended December 31, 2022 Year ended December 31, 2023 SGD’000 SGD’000 SGD’000 Outstanding contract value as of beginning of year (1) 5,820 19,997 29,050 New contract value for the year 22,208 19,515 6,411 Revenue recognized for the year 8,031 10,462 10,181 Outstanding contract value as of year end (2) 19,997 29,050 25,280 (1) Outstanding contract value as of beginning of year represents the contract value of orders which were not completed as of the beginning of the relevant year.
The following table sets forth the breakdown of our selling and marketing expenses for the financial years ended December 31, 2020, 2021 and 2022: Financial Year ended December 31, 2020 2021 2022 SGD’000 SGD’000 SGD’000 Promotion and marketing expenses 12 13 12 Transportation expenses 8 9 15 Total 20 22 27 Our selling and marketing expenses amounted to approximately S$20,000, S$22,000 and S$27,000 for the financial years ended December 31, 2020, 2021 and 2022, respectively.
The following table sets forth the breakdown of our selling and marketing expenses for the years ended December 31, 2021, 2022 and 2023: Year ended December 31, 2021 2022 2023 SGD’000 SGD’000 SGD’000 Promotion and marketing expenses 13 12 36 Transportation expenses 9 15 17 Total 22 27 53 Our selling and marketing expenses amounted to approximately SGD22,000, SGD27,000 and SGD53,000 for the years ended December 31, 2021, 2022 and 2023, respectively.
The following table sets out a breakdown of our revenue by geographic location of our customers for the financial years ended December 31, 2020, 2021 and 2022: Financial Year ended December 31, 2020 2021 2022 SGD’000 % SGD’000 % SGD’000 % Singapore Sale of precision cleaning systems 142 0.7 — — 917 4.9 Sale of other cleaning systems and other equipment 502 2.3 83 0.6 1,561 8.4 Repair and servicing of cleaning systems and sale of related parts 431 2.0 568 3.8 468 2.5 Provision of centralized dishware washing and general cleaning services 4,357 20.4 5,636 38.2 6,879 36.9 Leasing of dishware washing equipment 95 0.4 153 1.0 309 1.7 Sub-total 5,527 25.8 6,440 43.6 10,134 54.4 Financial Year ended December 31, 2020 2021 2022 SGD’000 % SGD’000 % SGD’000 % Malaysia Sale of precision cleaning systems 11,672 54.5 4,415 29.9 3,896 20.9 Sale of other cleaning systems and other equipment - - — — — — Repair and servicing of cleaning systems and sale of related parts 617 2.9 462 3.2 368 2.0 Sub-total 12,289 57.4 4,877 33.1 4,264 22.9 Financial Year ended December 31, 2020 2021 2022 SGD’000 % SGD’000 % SGD’000 % Other countries (1) Sale of precision cleaning systems 1,106 5.2 343 2.3 357 1.9 Sale of other cleaning systems and other equipment 2,361 11.0 2,998 20.3 3,751 20.1 Repair and servicing of cleaning systems and sale of related parts 114 0.6 106 0.7 125 0.7 Sub-total 3,581 16.8 3,447 23.3 4,233 22.7 Total 21,397 100.0 14,764 100.0 18,631 100.0 (1) For the financial years ended December 31, 2020, 2021 and 2022, other countries include the U.S., Thailand, Belgium, Philippines, India, South Korea, Taiwan, Japan and the PRC.
The following table sets out a breakdown of our revenue by geographic location of our customers for the years ended December 31, 2021, 2022 and 2023: Year ended December 31, 2021 2022 2023 SGD’000 % SGD’000 % SGD’000 % Singapore Sale of precision cleaning systems - - 917 4.9 5,587 31.0 Sale of other cleaning systems and other equipment 83 0.6 1,561 8.4 22 0.1 Repair and servicing of cleaning systems and sale of related parts 568 3.8 468 2.5 519 2.9 Provision of centralized dishware washing and general cleaning services 5,636 38.2 6,879 36.9 6,710 37.2 Leasing of dishware washing equipment 153 1.0 309 1.7 331 1.8 Sub-total 6,440 43.6 10,134 54.4 13,169 73.0 61 Year ended December 31, 2021 2022 2023 SGD’000 % SGD’000 % SGD’000 % Malaysia Sale of precision cleaning systems 4,415 29.9 3,896 20.9 758 4.2 Repair and servicing of cleaning systems and sale of related parts 462 3.2 368 2.0 260 1.4 Sub-total 4,877 33.1 4,264 22.9 1,018 5.6 Year ended December 31, 2021 2022 2023 SGD’000 % SGD’000 % SGD’000 % Other countries (1) Sale of precision cleaning systems 343 2.3 357 1.9 342 1.9 Sale of other cleaning systems and other equipment 2,998 20.3 3,751 20.1 3,473 19.3 Repair and servicing of cleaning systems and sale of related parts 106 0.7 125 0.7 30 0.2 Sub-total 3,447 23.3 4,233 22.7 3,845 21.4 Total 14,764 100.0 18,631 100.0 18,032 100.0 (1) For the years ended December 31, 2021, 2022 and 2023, other countries include the U.S., Thailand, Belgium, Philippines, India, South Korea, Taiwan, Japan and the PRC.
As of December 31, 2022, our accounts receivable as of December 31, 2021 have been fully settled. During the financial years ended December 31, 2021 and 2022, accounts receivable were closely monitored and reviewed on a regular basis to identify any potential non-payment or delay in payment.
During the years ended December 31, 2022 and 2023, accounts receivable were closely monitored and reviewed on a regular basis to identify any potential non-payment or delay in payment.
The following table sets forth the ageing analysis of our accounts payable based on the invoice date as of the dates mentioned below: As of December 31, 2021 2022 SGD’000 SGD’000 Within 30 days 1,712 1,199 Between 31 and 60 days 196 557 Between 61 and 90 days 5 6 More than 90 days 3 19 Total 1,916 1,781 76 The following table sets forth our average accounts payable turnover days for the financial years ended December 31, 2021 and 2022: Year ended December 31, 2021 2022 Average accounts payable turnover days (1) 64.0 50.0 (1) Average accounts payable turnover days is calculated as the average of the beginning and ending of accounts payable balance for the respective year divided by cost of revenues for the respective year and multiplied the number of days in the respective year.
Our accounts payable decreased from approximately SGD1.8 million as of December 31, 2022 to approximately SGD1.4 million as of December 31, 2023. 73 The following table sets forth the ageing analysis of our accounts payable based on the invoice date as of the dates mentioned below: As of December 31, 2022 2023 SGD’000 SGD’000 Within 30 days 1,199 1,314 Between 31 and 60 days 557 82 Between 61 and 90 days 6 - More than 90 days 19 - Total 1,781 1,396 The following table sets forth our average accounts payable turnover days for the years ended December 31, 2022 and 2023: Year ended December 31, 2022 2023 Average accounts payable turnover days (1) 50.0 42.4 (1) Average accounts payable turnover days is calculated as the average of the beginning and ending of accounts payable balance for the respective year divided by cost of revenues for the respective year and multiplied the number of days in the respective year.
Our net income amounted to approximately S$1.7 million, S$2,000 and S$1.2 million for the financial years ended December 31, 2020, 2021 and 2022, respectively. The following table shows our Statement of Operations data for the financial years ended December 31, 2020, 2021 and 2022 in SGD and, for 2022, in USD.
Our net income amounted to approximately SGD2,000, SGD1.2 million and SGD0.5 million for the years ended December 31, 2021, 2022 and 2023, respectively. 58 The following table shows our Statement of Operations data for the years ended December 31, 2021, 2022 and 2023 in SGD and, for 2023, in USD.
The following table sets out the revenue generated from each of our business sectors during the financial years ended December 31, 2020, 2021 and 2022: Financial Year ended December 31, 2020 2021 2022 SGD’000 % SGD’000 % SGD’000 % Sale of cleaning systems and other equipment business Sale of precision cleaning systems 12,920 60.4 4,757 32.2 6,644 35.7 Sale of other cleaning systems and other equipment 2,863 13.4 3,056 20.7 3,838 20.6 Repair and servicing of cleaning systems and sale of related parts 1,162 5.4 1,162 7.9 961 5.1 Sub-total 16,945 79.2 8,975 60.8 11,443 61.4 Provision of centralized dishwashing and ancillary services business Provision of centralized dishwashing and general cleaning services 4,357 20.4 5,636 38.2 6,879 36.9 Leasing of dishwashing equipment 95 0.4 153 1.0 309 1.7 Sub-total 4,452 20.8 5,789 39.2 7,188 38.6 Total 21,397 100.0 14,764 100.0 18,631 100.0 63 Our total revenue increased by approximately S$3.9 million or 26.2% to approximately S$18.6 million for the financial year ended December 31, 2022 from approximately S$14.8 million for the financial year ended December 31, 2021.
The following table sets out the revenue generated from each of our business sectors during the years ended December 31, 2021, 2022 and 2023: Year ended December 31, 2021 2022 2023 SGD’000 % SGD’000 % SGD’000 % Sale of cleaning systems and other equipment business Sale of precision cleaning systems 4,757 32.2 6,644 35.7 6,687 37.1 Sale of other cleaning systems and other equipment 3,056 20.7 3,838 20.6 3,494 19.4 Repair and servicing of cleaning systems and sale of related parts 1,162 7.9 961 5.1 810 4.5 Sub-total 8,975 60.8 11,443 61.4 10,991 61.0 Provision of centralized dishwashing and ancillary services business Provision of centralized dishwashing and general cleaning services 5,636 38.2 6,879 36.9 6,710 37.2 Leasing of dishwashing equipment 153 1.0 309 1.7 331 1.8 Sub-total 5,789 39.2 7,188 38.6 7,041 39.0 Total 14,764 100.0 18,631 100.0 18,032 100.0 Our total revenue decreased by approximately SGD0.6 million, or 3.2%, to approximately SGD18.0 million for the year ended December 31, 2023 from approximately SGD18.6 million for the year ended December 31, 2022.
As of December 31, 2021 2022 SGD’000 SGD’000 Raw materials 1,980 9,065 Work-in-progress 516 2,078 Finished goods 61 749 2,557 11,892 The following table sets forth our average inventory turnover days for the financial years ended December 31, 2021 and 2022: Financial Year ended December 31, 2021 2022 Average inventory turnover days (1) 75 122 (1) Average inventory turnover days is calculated as the average of the beginning and ending of inventory balance for the respective year divided by cost of revenues/purchases for the respective year and multiplied the number of days in the respective year.
As of December 31, 2022 2023 SGD’000 SGD’000 Raw materials 9,065 10,136 Work-in-progress 2,078 3,062 Finished goods 749 875 11,892 14,073 The following table sets forth our average inventory turnover days for the years ended December 31, 2022 and 2023: Year ended December 31, 2022 2023 Average inventory turnover days (1) 122.0 346.7 (1) Average inventory turnover days is calculated as the average of the beginning and ending of inventory balance for the respective year divided by cost of purchases for the respective year and multiplied the number of days in the respective year.
For the financial year ended December 31, 2021, our Group recorded net cash used in financing activities of approximately S$2.1 million, which was mainly attributable to (i) dividends paid of S$2.9 million, (ii) net repayment of bank loans of approximately S$0.3 million; and (iii) payment of deferred financing costs of approximately S$0.4 million while partially mitigated by the cash inflow from the proceeds from a controlling shareholder loan of S$1.5 million. 73 For the financial year ended December 31, 2022, our Group recorded net cash generated from financing activities of approximately S$11.5 million, which was mainly attributable to the net proceeds from the issuance of Ordinary Shares of approximately S$14.9 million; and partially offset by (i) the placement of deposit with escrow agent of approximately S$0.8 million as a result of our initial public offering; (ii) the payment of deferred financing costs of approximately S$1.5 million; (iii) the repayment of bank loans of approximately S$0.3 million; and (iv) the repayment of controlling shareholder loan of approximately S$0.8 million.
For the year ended December 31, 2022, our Group recorded net cash generated from financing activities of approximately SGD11.5 million, which was mainly attributable to the net proceeds from the issuance of Ordinary Shares of approximately SGD14.9 million; and partially offset by (i) the placement of a deposit with an escrow agent of approximately SGD0.8 million as a result of our initial public offering; (ii) the payment of deferred financing costs of approximately SGD1.5 million; (iii) the repayment of bank loans of approximately SGD0.3 million; and (iv) the repayment of controlling shareholder loans of approximately SGD0.8 million.
Our Group’s operations are based in Singapore and we are subject to income tax on an entity basis on the estimated chargeable income arising in Singapore at the statutory rate of 17%. For the financial year ended December 31, 2022, our income tax increased to approximately S$0.2 million and our effective tax rate was approximately 16.5%.
Our Group’s operations are based in Singapore and we are subject to income tax on an entity basis on the estimated chargeable income arising in Singapore at the statutory rate of 17%. 67 For the year ended December 31, 2023, our income tax decreased to approximately SGD0.1 million, and our effective tax rate was approximately 17.6%.
Our Group’s accruals increased to approximately S$0.8 million as of December 31, 2022, primarily attributable to the accrual of incentive bonus of approximately S$0.3 million and professional fees of approximately S$0.1 million. Our Group did not have any material default in payment of other payables during the financial years ended December 31, 2021 and 2022.
Our Group’s accruals decreased to approximately SGD0.7 million as of December 31, 2023 primarily attributable to the lower accrual of incentive bonuses of approximately SGD0.1 million and professional fees of approximately SGD0.1 million. Our Group did not have any material default in payment of other payables during the years ended December 31, 2022 and 2023.
For the financial years ended December 31, 2021 and 2022, the wholesale sales of STICO anti-slip shoes increased by approximately 23.7% and 32.5%, respectively, due to resumption of demand from food and beverage establishments.
For the year ended December 31, 2022, wholesale sales of STICO anti-slip shoes increased by approximately 32.5% due to resumption of demand from food and beverage establishments after the elimination of Covid-19 restrictions.
S$5.5 million of our bank indebtedness constitutes current liability and S$4.4 million constitutes non-current liability.
SGD5.5 million of our bank indebtedness constitutes current liability and S3.9 million constitutes non-current liability.
Our net cash generated from/(used in) operating activities primarily reflected our net income, as adjusted for non-operating items, such as depreciation, (gain)/loss on disposal of property, plant and equipment, reversal/provision of loss allowance, change in fair value of financial instruments and effects of changes in working capital such as increase or decrease in inventories, accounts receivable, accounts payable, accruals and other current liabilities. 72 For financial year ended December 31, 2020, our net cash generated from operating activities was approximately S$1.1 million, which primarily reflected our net income of approximately S$1.7 million, as positively adjusted by (i) the non-cash depreciation of property, plant and equipment of approximately S$0.8 million, (ii) the increase in accounts payables, accruals and other current liabilities of approximately S$1.5 million; and (iii) the decrease in inventories of approximately S$1.6 million.
Our net cash generated from/(used in) operating activities primarily reflected our net income, as adjusted for non-operating items, such as depreciation, (gain)/loss on disposal of property, plant and equipment, reversal/provision of loss allowance, change in fair value of financial instruments and effects of changes in working capital such as increase or decrease in inventories, accounts receivable, accounts payable, accruals and other current liabilities.
Accounts receivable Our accounts receivable, net, increased from approximately S$3.2 million as of December 31, 2021 to approximately S$5.6 million as of December 31, 2022. The increase was primarily attributable to an increase of sales during the year. We did not charge any interest on, or hold any collateral as security over these accounts receivable balances.
Accounts receivable Our accounts receivable, net, decreased from approximately SGD5.6 million as of December 31, 2022 to approximately SGD4.8 million as of December 31, 2023. The decrease was primarily attributable to a decrease in sales during the year ended December 31, 2023. We did not charge any interest on, or hold any collateral as security over these accounts receivable balances.
The provision is based on estimates made from historical warranty data associated with similar products and services. As of December 31, 2021 and 2022, our Group recorded warranty liabilities of approximately S$22,000. Income taxes payables Our income taxes payable remained nil as of December 31, 2021 and $0.3 million as at December 31, 2022.
The provision is based on estimates made from historical warranty data associated with similar products and services. As of December 31, 2022 and 2023, our Group recorded warranty liabilities of approximately SGD22 thousand and SGD22 thousand, respectively. Income taxes payable Our income taxes payable as of December 31, 2022 were SGD0.3 million and SGD0.1 million as of December 31, 2023.
The preparation of these financial statements and accompanying notes requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities.
Critical Accounting Policies and Estimates Our financial statements and accompanying notes have been prepared in accordance with U.S. GAAP. The preparation of these financial statements and accompanying notes requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities.
Financial Year ended December 31, 2020 2021 2022 SGD’000 % SGD’000 % SGD’000 % Cost of sale of cleaning systems and other equipment 11,224 72.4 6,885 55.5 7,113 52.7 Cost of provision of centralized dishwashing and ancillary services 4,269 27.6 5,531 44.5 6,390 47.3 Total 15,493 100.0 12,416 100.0 13,503 100.0 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, 2020, 2021 and 2022: Financial Year ended December 31, 2020 2021 2022 Gross Gross Gross Gross Profit Gross Profit Gross Profit profit Margin profit Margin profit Margin SGD’000 % SGD’000 % SGD’000 % Sale of precision cleaning systems and other equipment business Sale of precision cleaning systems 4,601 35.6 1,509 30.8 2,657 40.5 Sale of other cleaning systems and other equipment 847 29.6 475 15.9 1,456 37.2 Repair and servicing of cleaning systems and sale of related parts 273 23.4 106 9.7 217 22.6 Sub-total/overall 5,721 33.8 2,090 23.3 4,330 40.8 66 Financial Year ended December 31, 2020 2021 2022 Gross Gross Gross Gross Profit Gross Profit Gross Profit profit Margin profit Margin profit Margin SGD’000 % SGD’000 % SGD’000 % Provision of centralized dishwashing and ancillary services business 183 4.1 258 4.5 798 11.1 Total/overall 5,904 27.6 2,348 15.9 5,128 27.5 Our total gross profit amounted to approximately S$5.9 million, S$2.3 million and S$5.1 million for the financial years ended December 31, 2020, 2021 and 2022, respectively.
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 years ended December 31, 2021, 2022 and 2023: Year ended December 31, 2021 2022 2023 Gross Gross Gross Gross Profit Gross Profit Gross Profit profit Margin Profit Margin profit Margin SGD’000 % SGD’000 % SGD’000 % Sale of precision cleaning systems and other equipment business Sale of precision cleaning systems 1,509 30.8 2,657 40.5 2,051 30.7 Sale of other cleaning systems and other equipment 475 15.9 1,456 37.2 943 27.0 Repair and servicing of cleaning systems and sale of related parts 106 9.7 217 22.6 427 52.7 Sub-total/overall 2,090 23.3 4,330 40.8 3,421 31.1 63 Year ended December 31, 2021 2022 2023 Gross Gross Gross Gross Profit Gross Profit Gross Profit profit Margin profit Margin profit Margin SGD’000 % SGD’000 % SGD’000 % Provision of centralized dishwashing and ancillary services business 258 4.5 798 11.1 945 13.4 Total/overall 2,348 15.9 5,128 27.5 4,366 24.2 Our total gross profit amounted to approximately SGD2.3 million, SGD5.1 million and SGD4.4 million for the years ended December 31, 2021, 2022 and 2023, respectively.
For financial year ended December 31, 2020, our Group recorded net cash used in financing activities of approximately S$1.2 million, which was mainly attributable to the repayment of bank loans and lease liabilities of approximately S$0.8 million and payment of deferred financing costs of S$0.4 million.
For the year ended December 31, 2023, our Group recorded net cash used in financing activities of approximately SGD2.9 million, which was mainly attributable to the repayment of bank loans of approximately SGD1.7 million, repayment of a controlling shareholder loan of SGD0.7 million and payment of deferred financing costs of $0.4 million.
The following table sets forth the breakdown of our administrative expenses for the financial years ended December 31, 2020, 2021 and 2022: Financial Year ended December 31, 2020 2021 2022 SGD’000 % SGD’000 % SGD’000 % Staff costs 1,412 60.1 1,383 61.0 2,090 62.6 Depreciation 339 14.4 379 16.7 409 12.2 Office supplies and upkeep expenses 160 6.8 150 6.6 132 3.9 Travelling and entertainment 123 5.2 105 4.6 158 4.7 Legal and professional fees 120 5.1 49 2.2 197 5.9 Property and related expenses 147 6.3 176 7.8 170 5.1 Directors’ and officers’ liability insurance - - 136 4.1 Miscellaneous expenses 49 2.1 25 1.1 45 1.4 Total 2,350 100.0 2,267 100.0 3,337 100.0 Our general and administrative expenses amounted to approximately S$2.4 million, S$2.3 million and S$3.3 million for the financial years ended December 31, 2020, 2021 and 2022, respectively, representing approximately 11.0%, 15.4% and 17.9% of our total revenue for the corresponding years.
The following table sets forth the breakdown of our administrative expenses for the years ended December 31, 2021, 2022 and 2023: Year ended December 31, 2021 2022 2023 SGD’000 % SGD’000 % SGD’000 % Staff costs 1,383 61.0 2,090 62.6 1,689 51.1 Depreciation 379 16.7 409 12.2 163 4.9 Office supplies and upkeep expenses 150 6.6 132 3.9 162 4.9 Travel and entertainment 105 4.6 158 4.7 234 7.1 Legal and professional fees 49 2.2 197 5.9 727 22.0 Corporate secretarial and administrative fees - - - - 25 0.8 Nasdaq annual listing fee - - - - 84 2.5 Directors’ and officers’ liability insurance - - 136 4.1 137 4.1 Miscellaneous expenses 201 8.9 215 6.6 82 2.5 Total 2,267 100.0 3,337 100.0 3,303 100.0 Our general and administrative expenses amounted to approximately SGD2.3 million, SGD3.3 million and SGD3.3 million for the years ended December 31, 2021, 2022 and 2023, respectively, representing approximately 15.4%, 17.9% and 18.3% of our total revenue for the corresponding years.
Our overall gross profit margins were approximately 27.6%, 15.9% and 27.5% for the financial years ended December 31, 2020, 2021 and 2022, respectively. Our total gross profit increased during the financial year ended December 31, 2022, which was generally in line with our revenue growth and revenue contributed from precision cleaning machines during the financial year.
Our total gross profit increased during the year ended December 31, 2022, which was generally in line with our revenue growth and revenue contributed from precision cleaning machines during the year.
While our significant accounting policies are more fully described in Note 2 to the consolidated financial statements included elsewhere in this Annual Report, we believe the following critical accounting policies involve the most significant estimates and judgments used in the preparation of our financial statements.
While our significant accounting policies are more fully described in Note 2 to the consolidated financial statements included elsewhere in this Annual Report, we believe the following critical accounting policies involve the most significant estimates and judgments used in the preparation of our financial statements. 75 We are an “emerging growth company” as defined under the federal securities laws and, as such, will be subject to reduced public company reporting requirements.
Such income tax increase was generally in line with the increase in our profit for the year. Our income tax decreased to nil for the financial year ended December 31, 2021 and was generally in line with the decrease in our profit for the year.
During the year ended December 31, 2022, our income tax increased to approximately SGD0.2 million and our effective tax rate was approximately 16.5%. Our income tax decreased to nil for the financial year ended December 31, 2021 and was generally in line with the decrease in our profit for the year.
Other expenses remained relatively unchanged for the financial year ended December 31, 2022 as compared to the previous year. Income tax During the financial years ended December 31, 2020, 2021 and 2022, our income tax expense was comprised of our current tax expense and deferred tax for the financial year.
Income tax During the years ended December 31, 2021, 2022 and 2023, our income tax expense was comprised of our current tax expense and deferred tax for the year.
Contract liabilities Our contract liabilities represent the sales deposits and instalments received during the financial year in respect of machineries still under production but not yet recognized as revenue under our revenue recognition policies. Our contract liabilities amounted to approximately nil and S$4.3 million as of December 31, 2021 and 2022, respectively.
Contract liabilities Our contract liabilities represent the sales deposits and installments received during the year in respect of machineries still under production but not yet recognized as revenue under our revenue recognition policies.
Our total gross profit during the financial year ended December 31, 2021 decreased by approximately S$3.6 million from approximately S$5.9 million for the financial year ended December 31, 2020 to approximately S$2.3 million which was mainly due to the decrease in our revenue from the sales of precision cleaning systems and other equipment business.
Our total gross profit during the year ended December 31, 2021 was lower than our total gross profit for both fiscal years ended December 31, 2023 and 2022, which was mainly due to the decrease in 2021 in our revenue from the sales of precision cleaning systems and other equipment business.
Depreciation expense is charged on our property, plant and equipment which included (i) leasehold buildings; (ii) right-of-use assets; (iii) plant and machinery; and (iv) furniture and fittings. The increase in depreciation is mainly due to amortization of newly acquired computer equipment, hardware and system.
Depreciation expense is charged on our property, plant and equipment, which included (i) leasehold buildings; (ii) right-of-use assets; (iii) computer equipment; and (iv) furniture and fittings. The decrease in depreciation for the year ended December 31, 2023 as compared to 2022 is mainly due to certain assets being fully depreciated in 2022.
Our average accounts receivable turnover days were approximately 138.5 days and 86.7 days for the financial years ended December 31, 2021 and 2022, respectively. The decrease in average accounts receivable turnover days for the financial year ended December 31, 2022 was mainly due to faster collection of our accounts receivable.
Our average accounts receivable turnover days were approximately 86.7 days and 96.7 days for the years ended December 31, 2022 and 2023, respectively. The increase in average accounts receivable turnover days for the year ended December 31, 2023 was mainly due to slower payment term from certain major customers.
Impact of Inflation In accordance with the Monetary Authority of Singapore, the year-over-year percentage changes in the consumer price index for 2019 and 2020 were 0.57% and -0.18%, respectively. The rate of inflation in 2022 was significantly higher and is expected to reach 0.9%. 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 2021, 2022 and 2023 were 2.3%, 6.1% and 4.8%, respectively. Inflation in Singapore has not materially affected our profitability and operating results.
Cash flows from financing activities Our cash flows (used in)/generated from financing activities primarily consists of proceeds from and repayment of bank loans and controlling shareholder loan, dividends paid, proceeds from issuance of shares, placement of deposit with escrow agent and payment of deferred financing costs.
For the year ended December 31, 2023, our net cash used in investing activities was approximately SGD0.2 million, primarily due to the purchase of property, plant and equipment of approximately SGD0.2 million to increase our operating capacity. 70 Cash flows from financing activities Our cash flows (used in)/generated from financing activities primarily consists of proceeds from and repayment of bank loans and controlling shareholder loans, dividends paid, proceeds from the issuance of shares, placement of deposit with escrow agent and payment of deferred financing costs.

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Item 6. [Reserved]

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

36 edited+16 added−8 removed36 unchanged
The nomination committee’s responsibilities include: ● developing and recommending to the board of directors criteria for board and committee membership; ● establishing procedures for identifying and evaluating director candidates, including nominees recommended by stockholders; and ● reviewing the composition of the board of directors to ensure that it is composed of members containing the appropriate skills and expertise to advise us.
The nomination committee’s responsibilities include: ● developing and recommending to the board of directors criteria for board and committee membership; 82 ● establishing procedures for identifying and evaluating director candidates, including nominees recommended by stockholders; and ● reviewing the composition of the board of directors to ensure that it is composed of members containing the appropriate skills and expertise to advise us.
Ms. Hong’s employment will continue indefinitely, subject to termination by either party to the agreement upon 6 months’ prior written notice or the equivalent salary in lieu of such notice. The agreement also contains non-compete and non-disclosure provisions and restrictions against the unauthorized use of the Company’s intellectual property.
Hong’s employment will continue indefinitely, subject to termination by either party to the agreement upon 6 months’ prior written notice or the equivalent salary in lieu of such notice. The agreement also contains non-compete and non-disclosure provisions and restrictions against the unauthorized use of the Company’s intellectual property.
Prior to joining our Group, Mr. Long worked at KPMG in Johor Bahru, Malaysia from February 2000 to September 2007 with his last position as deputy audit manager. From October 2007 to October 2014, he worked at KPMG Services Pte. Ltd. in Singapore with his last position as senior manager. Mr.
Prior to joining our Group, Mr. Long worked at KPMG in Johor Bahru, Malaysia from February 2000 to September 2007 with his last position as deputy audit manager. From October 2007 to October 2014, he worked at KPMG Services Pte. Ltd. in Singapore with his last position being senior manager.
Employment Agreements Employment Agreement with Hong Bee Yin Effective as of January 1, 2014, we entered into an employment agreement with Hong Bee Yin pursuant to which she was employed as Executive Director of JCS-Echigo Pte Ltd.
Employment Agreements with Executive Directors Employment Agreement with Hong Bee Yin Effective as of January 1, 2014, we entered into an employment agreement with Hong Bee Yin pursuant to which she was employed as Executive Director of JCS-Echigo Pte Ltd.
Hong has accumulated more than 20 years of operational experience in providing cleaning solutions for the cleaning industry. Prior to forming our Group, Ms. Hong worked at JLW Property Consultants Pte Ltd. from June 1993 to June 1998 with her last position as assistant manager (Industrial Department).
Hong has accumulated more than 21 years of operational experience in providing cleaning solutions for the cleaning industry. Prior to forming our Group, Ms. Hong worked at JLW Property Consultants Pte Ltd. from June 1993 to June 1998 with her last position as assistant manager (Industrial Department).
Long Jia Kwang joined our Group as financial controller in December 2014 and was appointed as our executive Director and Chief Financial Officer on March 5, 2020. Mr. Long is primarily responsible for managing accounting and finance, human resources and administrative functions of our Group. Mr. Long has over 20 years of experience in auditing, accounting and financial management.
Long Jia Kwang joined our Group as financial controller in December 2014 and was appointed as our Executive Director and Chief Financial Officer on March 5, 2020. Mr. Long is primarily responsible for managing accounting and finance, human resources and administrative functions of our Group. Mr. Long has over 21 years of experience in auditing, accounting and financial management.
Khoo Su Nee, Joanne was appointed as an independent non-executive Director of the Company on January 19, 2022. Ms. Khoo will serve as the chairman of the audit committee and as a member of the compensation and nomination committees. Ms. Khoo has over 25 years of experience in corporate finance and business advisory services. Ms.
Khoo Su Nee, Joanne was appointed as an independent Non-executive Director of the Company on January 19, 2022. Ms. Khoo will serve as the chairman of the audit committee and as a member of the compensation and nomination committees. Ms. Khoo has over 27 years of experience in corporate finance and business advisory services. Ms.
Zhao Liang joined our Group as the head of the design department in October 2010 and is mainly responsible for leading the design of the mechanical and process aspects of cleaning systems and other equipment. Mr. Zhao has over 14 years of experience in engineering and mechanical design. From February 2006 to September 2010, Mr.
Zhao Liang joined our Group as the head of the design department in October 2010 and is mainly responsible for leading the design of the mechanical and process aspects of cleaning systems and other equipment. Mr. Zhao has over 15 years of experience in engineering and mechanical design. From February 2006 to September 2010, Mr.
Other than as disclosed above, none of our directors has entered into a service agreement with our Company or any of our subsidiaries that provides for benefits upon termination of employment. Indemnification Agreements We have entered into indemnification agreements with each of our directors and executive officers.
Other than as disclosed above, none of our independent Non-executive Directors has entered into a service agreement with our Company or any of our subsidiaries that provides for benefits upon termination of employment. Indemnification Agreements We have entered into indemnification agreements with each of our directors and executive officers.
Tay will serve as chairman of the compensation committee and as a member of the audit and nomination committees. Mr. Tay has over 18 years of experience in business management and financial advisory services. Since October 2014, Mr.
Tay will serve as chairman of the compensation committee and as a member of the audit and nomination committees. Mr. Tay has over 19 years of experience in business management and financial advisory services. Since October 2014, Mr.
Under the terms of the agreement, Mr. Wui’s employment will continue indefinitely, subject to termination by either party to the agreement upon 1 months’ written notice or the equivalent salary in lieu of such notice.
Under the terms of the agreement, Mr. Long’s employment will continue indefinitely, subject to termination by either party to the agreement upon 1 months’ written notice or the equivalent salary in lieu of such notice.
Effective as of March 5, 2020, we entered into an employment agreement with Long Jia Kwang pursuant to which he was employed as the executive Director and Chief Financial Officer of JE Cleantech Holdings Limited. The agreement provides for a monthly base director fee of US$4,000. The other terms stated herein remain unchanged.
Effective as of March 5, 2020, we entered into an employment agreement with Long Jia Kwang pursuant to which he was employed as an Executive Director and Chief Financial Officer of JE Cleantech Holdings Limited. The agreement provides for a monthly base director fee of US$4,000. The other terms stated herein remain unchanged. The aggregate compensation paid to Mr.
She also completed the Tsinghua SEM Indonesia-Singapore Executive Program and SPRING CEO Leadership Circle Program in May 2014 and November 2016, respectively. Ms. Hong has been appointed as the deputy chairman of Singapore Precision Engineering and Technology Association from April 2017 to April 2019. 81 Mr.
She also completed the Tsinghua SEM Indonesia-Singapore Executive Program and SPRING CEO Leadership Circle Program in May 2014 and November 2016, respectively. Ms. Hong was appointed as the deputy chairman of Singapore Precision Engineering and Technology Association from April 2017 to April 2019, and she has been appointed as the chairman from April 2019 to April 2025. 78 Mr.
The audit committee’s responsibilities include: ● appointing, approving the compensation of, and assessing the independence of our independent registered public accounting firm; ● pre-approving auditing and permissible non-audit services, and the terms of such services, to be provided by our independent registered public accounting firm; ● reviewing the overall audit plan with our independent registered public accounting firm and members of management responsible for preparing our financial statements; ● reviewing and discussing with management and our independent registered public accounting firm our annual and quarterly/semi-annual financial statements and related disclosures as well as critical accounting policies and practices used by us; ● coordinating the oversight and reviewing the adequacy of our internal control over financial reporting; ● establishing policies and procedures for the receipt and retention of accounting-related complaints and concerns; recommending, based upon the audit committee’s review and discussions with management and our independent registered public accounting firm, whether our audited financial statements shall be included in our Annual Report on Form 20-F; ● monitoring the integrity of our financial statements and our compliance with legal and regulatory requirements as they relate to our financial statements and accounting matters; ● preparing the audit committee report required by SEC rules, if and when required; 84 ● reviewing all related person transactions for potential conflict of interest situations and approving all such transactions; and ● reviewing earnings releases.
The audit committee’s responsibilities include: ● appointing, approving the compensation of, and assessing the independence of our independent registered public accounting firm; 81 ● pre-approving auditing and permissible non-audit services, and the terms of such services, to be provided by our independent registered public accounting firm; ● reviewing the overall audit plan with our independent registered public accounting firm and members of management responsible for preparing our financial statements; ● reviewing and discussing with management and our independent registered public accounting firm our annual and quarterly/semi-annual financial statements and related disclosures as well as critical accounting policies and practices used by us; ● coordinating the oversight and reviewing the adequacy of our internal control over financial reporting; ● establishing policies and procedures for the receipt and retention of accounting-related complaints and concerns; recommending, based upon the audit committee’s review and discussions with management and our independent registered public accounting firm, whether our audited financial statements shall be included in our Annual Report on Form 20-F; ● monitoring the integrity of our financial statements and our compliance with legal and regulatory requirements as they relate to our financial statements and accounting matters; ● preparing the audit committee report required by SEC rules, if and when required; ● reviewing all related person transactions for potential conflict of interest situations and approving all such transactions; ● Continuously engaging in the review for any potential cybersecurity risks as part of the Company’s overall risk management program; and ● reviewing earnings releases.
Wui Chin Hou is the field operations manager of our Group and is mainly responsible for managing the operation of dishwashing facilities and the cleaning operation of food courts. Mr. Wui joined our Group in September 2016. 83 Mr. Wui has over 24 years of experience in production management. Prior to joining our Group, Mr.
Wui Chin Hou is the field operations manager of our Group and is mainly responsible for managing the operation of dishwashing facilities and the cleaning operation of food courts. Mr. Wui joined our Group in September 2016. 80 Mr. Wui has over 25 years of experience in production management. Prior to joining our Group, Mr.
Hong is entitled to receive an annual cash bonus in the amount of S$500,000 for any financial year in which the Company’s net profit, after tax, (inclusive of any amounts payable or to be set aside for all bonuses) equals at least S$5 million, together with such additional bonus as may be agreed from time to time with the Company.
Hong is entitled to receive an annual cash bonus in the amount of SGD500,000 for any year in which the Company’s net profit, after tax, (inclusive of any amounts payable or to be set aside for all bonuses) equals at least SGD5 million, together with such additional bonus as may be agreed from time to time with the Company. Ms.
Name Age Title Executive Officers and Directors: Hong Bee Yin 51 Chairman, executive Director and Chief Executive Officer Long Jia Kwang 45 Executive Director and Chief Financial Officer Independent Non-executive Directors: Singh Karmjit 76 Independent non-executive Director Tay Jingyan, Gerald 35 Independent non-executive Director Khoo Su Nee, Joanne 49 Independent non-executive Director Key Personnel: Zhao Liang 41 Head of design department Wui Chin Hou 50 Field operations manager No arrangement or understanding exists between any such director or officer and any other persons pursuant to which any director or executive officer was elected as a director or executive officer.
Name Age Title Executive Officers and Directors: Hong Bee Yin 52 Chairman, Executive Director and Chief Executive Officer Long Jia Kwang 46 Executive Director and Chief Financial Officer Independent Non-executive Directors: Singh Karmjit 77 Independent Non-executive Director Tay Jingyan, Gerald 36 Independent Non-executive Director Khoo Su Nee, Joanne 50 Independent Non-executive Director Key Personnel: Zhao Liang 42 Head of design department Wui Chin Hou 51 Field operations manager No arrangement or understanding exists between any such director or officer and any other persons pursuant to which any director or executive officer was elected as a director or executive officer.
Employees As of the end of 2022, we employed a total of 102 persons, 53 of whom are employed by JCS-Echigo and 49 of which are employed by Hygiea. Employees are not covered by collective bargaining agreements. We consider our labor practices and employee relations to be good.
Employees As of the end of 2023, we employed a total of 103 persons, 54 of whom are employed by JCS-Echigo and 49 of which are employed by Hygiea. Employees are not covered by collective bargaining agreements. We consider our labor practices and employee relations to be good.
The compensation committee’s responsibilities include: ● evaluating the performance of our chief executive officer in light of our company’s corporate goals and objectives and, based on such evaluation,: (i) recommending to the board of directors the cash compensation of our chief executive officer, and (ii) reviewing and approving grants and awards to our chief executive officer under equity-based plans; ● reviewing and recommending to the board of directors the cash compensation of our other executive officers; ● reviewing and establishing our overall management compensation, philosophy and policy; ● overseeing and administering our compensation and similar plans; ● reviewing and approving the retention or termination of any consulting firm or outside advisor to assist in the evaluation of compensation matters and evaluating and assessing potential and current compensation advisors in accordance with the independence standards identified in the applicable Nasdaq rules; ● retaining and approving the compensation of any compensation advisors; ● reviewing and approving our policies and procedures for the grant of equity-based awards; ● reviewing and recommending to the board of directors the compensation of our directors; and ● preparing the compensation committee report required by SEC rules, if and when required.
The compensation committee’s responsibilities include: ● evaluating the performance of our chief executive officer in light of our company’s corporate goals and objectives and, based on such evaluation,: (i) recommending to the board of directors the cash compensation of our chief executive officer, and (ii) reviewing and approving grants and awards to our chief executive officer under equity-based plans; ● reviewing and recommending to the board of directors the cash compensation of our other executive officers; ● reviewing and establishing our overall management compensation, philosophy and policy; ● overseeing and administering our compensation and similar plans; ● reviewing and approving the retention or termination of any consulting firm or outside advisor to assist in the evaluation of compensation matters and evaluating and assessing potential and current compensation advisors in accordance with the independence standards identified in the applicable Nasdaq rules; ● retaining and approving the compensation of any compensation advisors; ● reviewing and approving our policies and procedures for the grant of equity-based awards; ● reviewing and determining the necessity for recovery of certain incentive compensation previously paid to the Company’s current and former executive officers in the event of a restatement of the Company’s financial statements for any fiscal year; ● reviewing and recommending to the board of directors the compensation of our directors; and ● preparing the compensation committee report required by SEC rules, if and when required.
Effective as of March 5, 2020, we entered into an employment agreement with Hong Bee Yin pursuant to which she was employed as the executive Director, Chairman and Chief Executive Officer of JE Cleantech Holdings Limited. The agreement provides for a monthly base director fee of US$6,000.
Effective as of March 5, 2020, we entered into an employment agreement with Hong Bee Yin pursuant to which she was employed as an Executive Director, Chairman and Chief Executive Officer of JE Cleantech Holdings Limited. The agreement provides for a monthly base director fee of US$6,000. The other terms stated herein remain unchanged. The aggregate compensation paid to Ms.
The agreement provides for an annual base salary of S$330,000, which amount may be adjusted from time to time in the discretion of the Company. Under the terms of the agreement, Ms.
The agreement provides for an annual base salary of SGD300,000 and annual base director fee of SGD24,000, which amount may be adjusted from time to time in the discretion of the Company. Under the terms of the agreement, Ms.
Ms. Khoo served as an independent director of Excelpoint Technology Ltd. (a company listed on the main board of the Singapore Exchange Limited (stock code: SGX: BDF)) from September 2016 to April 2022. She has also served as an independent non-executive director of Netccentric Limited (a company listed on The Australian Securities Exchange (stock code: ASX: NCL)) since July 2017.
Ms. Khoo served as an independent director of Excelpoint Technology Ltd. (a company listed on the main board of the Singapore Exchange Limited (stock code: SGX: BDF)) from September 2016 to April 2022.
We did not set aside or accrue any amounts to provide pension, retirement or similar benefits for directors and officers for the financial year ended December 31, 2021 and 2022 other than contributions to our Provident Fund Plan as social insurances and housing provident fund, which aggregated S$62,000 and S$63,000 for officers and directors.
Compensation For the year ended December 31, 2023, we paid an aggregate of SGD952,000 as compensation to our directors, our executive officers and our key employees. 83 We did not set aside or accrue any amounts to provide pension, retirement or similar benefits for directors and officers for the year ended December 31, 2022 and 2023 other than contributions to our Provident Fund Plan as social insurances and housing provident fund, which aggregated SGD63,000 and SGD68,000 for officers and directors.
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 independent Non-executive 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.
These amounts may be adjusted from time to time. The agreement provides that the Company may, in its discretion, transfer or assign Mr. Long to any position compatible with that of Financial Controller or to any of the companies in our Group. Under the terms of the agreement, Mr.
The agreement provides for a monthly base salary of SGD9,750, plus a transportation allowance of SGD750 per month. These amounts may be adjusted from time to time. The agreement provides that the Company may, in its discretion, transfer or assign Mr. Long to any position compatible with that of Financial Controller or to any of the companies in our Group.
Any Director’s Agreement may be terminated for any or no reason by the director or at a meeting called expressly for that purpose by a vote of the shareholders holding more than 50% of the Company’s issued and outstanding Ordinary Shares entitled to vote. 87 Under the Directors’ Agreements, the initial annual salary that is payable to each of our directors is as follows: Ms.
Any such Director’s Agreement may be terminated for any or no reason by the independent Non-executive Director or at a meeting called expressly for that purpose by a vote of the shareholders holding more than 50% of the Company’s issued and outstanding Ordinary Shares entitled to vote.
Our nomination committee’s and board of directors’ priority in selecting board members is identification of persons who will further the interests of our shareholders through their established record of professional accomplishment, the ability to contribute positively to the collaborative culture among board members, knowledge of our business, understanding of the competitive landscape and professional and personal experience and expertise relevant to our growth strategy. 85 Foreign Private Issuer Status The Nasdaq listing rules include certain accommodations in the corporate governance requirements that allow foreign private issuers, such as us, to follow “home country” corporate governance practices in lieu of the otherwise applicable corporate governance standards of the Nasdaq.
Our nomination committee’s and board of directors’ priority in selecting board members is identification of persons who will further the interests of our shareholders through their established record of professional accomplishment, the ability to contribute positively to the collaborative culture among board members, knowledge of our business, understanding of the competitive landscape and professional and personal experience and expertise relevant to our growth strategy.
Since June 2020, she has also served as an independent non-executive director of ES Group (Holdings) Limited (a company listed on the Catalist of the Singapore Exchange Limited (stock code: SGX:5RC). Ms. Khoo obtained a Bachelor of Business degree in Accountancy from Royal Melbourne Institute of Technology in November 1997.
Since June 2020, she has also served as an independent non-executive director of ES Group (Holdings) Limited (a company listed on the Catalist of the Singapore Exchange Limited (stock code: SGX:5RC). Since February 2024, she has also served as an independent non-executive director of Ryde Group Ltd (a company listed on the NYSE American (stock code: NYSE AMERICAN:RYDE). Ms.
Nomination committee Mr. Singh, Ms. Khoo and Mr. Tay and will serve on the nomination committee, which will be chaired by Mr. Singh. Our board of directors has determined that each member of the nomination committee is “independent” as defined in the applicable Nasdaq rules.
Our board of directors has determined that each member of the nomination committee is “independent” as defined in the applicable Nasdaq rules.
Compensation committee Mr. Tay, Ms. Khoo and Mr. Singh will serve on the compensation committee, which will be chaired by Mr. Tay. Our board of directors has determined that each such member satisfies the “independence” requirements of Rule 5605(a)(2) of the Listing Rules of the Nasdaq Stock Market.
Our board of directors has determined that each such member satisfies the “independence” requirements of Rule 5605(a)(2) of the Listing Rules of the Nasdaq Stock Market.
Karmjit Singh was appointed as a non-executive Director of the Company on March 5, 2020 and redesignated as our independent non-executive Director on November 12, 2021. Mr. Singh serves as the chairman of the nomination committee and as a member of the audit and compensation committees. Mr.
Khoo was a member of the Women Corporate Directors from September 2018 to June 2019. Mr. Karmjit Singh was appointed as a Non-executive Director of the Company on March 5, 2020 and redesignated as our independent Non-executive Director on November 12, 2021. Mr.
She was admitted as a Certified Practicing Accountant of the CPA Australia in October 1999 and a Chartered Accountant of the Malaysian Institute of Accountants in July 2000. Ms. Khoo was a member of the Women Corporate Directors from September 2018 to June 2019. Mr.
Khoo obtained a Bachelor of Business degree in Accountancy from Royal Melbourne Institute of Technology in November 1997. She was admitted as a Certified Practicing Accountant of the CPA Australia in October 1999 and a Chartered Accountant of the Malaysian Institute of Accountants in July 2000. Ms.
Singh is primarily responsible for providing guidance to the management team on corporate strategies and governance matters. 82 Mr. Singh has over 45 years of experience in business management. From 1974 to 1998, Mr. Singh worked at Singapore Airlines Limited serving in a variety of managerial capacities covering corporate affairs, planning, aviation fuel and administrative services. Mr.
Singh serves as the chairman of the nomination committee and as a member of the audit and compensation committees. Mr. Singh is primarily responsible for providing guidance to the management team on corporate strategies and governance matters. 79 Mr. Singh has over 46 years of experience in business management. From 1974 to 1998, Mr.
The other terms stated herein remain unchanged. 86 Employment Agreement with Long Jia Kwang We entered into an employment agreement dated September 5, 2014 with Long Jia Kwang pursuant to which he was employed as Financial Controller for JCS-Echigo Pte Ltd. The agreement provides for a monthly base salary of S$9,750, plus a transportation allowance of S$750 per month.
Hong for the year ended December 31, 2023 were US$352,286. Employment Agreement with Long Jia Kwang We entered into an employment agreement dated September 5, 2014 with Long Jia Kwang pursuant to which he was employed as Financial Controller for JCS-Echigo Pte Ltd.
Long obtained a Bachelor of Commerce degree from the University of Adelaide, Australia in December 1999. Mr.
Since November 2023, he has also served as an independent non-executive director of Davis Commodities Limited (a company listed on the Nasdaq Stock Market (stock code: DTCK)). Mr. Long obtained a Bachelor of Commerce degree from the University of Adelaide, Australia in December 1999. Mr.
Zhao’s employment will continue indefinitely, subject to termination by either party to the agreement upon 1 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. The terms and conditions of such Directors’ Agreements are similar in all material aspects.
Long for the year ended December 31, 2023 was US$162,191. Independent Non-Executive Directors’ Agreements Each of our independent Non-executive Directors has entered into a Director’s Agreement with the Company and where relevant, a subsidiary. The terms and conditions of such Directors’ Agreements are similar in all material aspects, save for the director’s fees.
Removed
Compensation For the financial year ended December 31, 2021 and 2022, we paid an aggregate of S$766,000 and S$956,000 as compensation to our directors, our executive officers and our key employees.
Added
She has also served as an independent non-executive director of Xamble Group Limited, formerly known as Netccentric Limited (a company listed on The Australian Securities Exchange (stock code: ASX: XGL)) since July 2017.
Removed
Long’s employment will continue indefinitely, subject to termination by either party to the agreement upon 1 months’ written notice or the equivalent salary in lieu of such notice.
Added
Singh worked at Singapore Airlines Limited serving in a variety of managerial capacities covering corporate affairs, planning, aviation fuel and administrative services. Mr.
Removed
Employment Agreement with Wui Chin Hou We entered into an employment agreement dated July 21, 2016 with Wui Chin Hou pursuant to which he was employed as Field Operations Manager for Hygieia Warewashing Pte Ltd. The agreement provides for a monthly base salary of S$4,150, plus a transportation allowance of S$750 per month.
Added
April 26, 2024, our Board of Directors approved an amendment to the audit committee charter (the “Audit Committee Charter”) pursuant to which it adopted a cybersecurity policy (the “Cybersecurity Policy”) and further resolved that the audit committee will have full authority and power to implement the Cybersecurity Policy.
Removed
With effective from October 1, 2022, the monthly base salary has been revised to S$4,475. These amounts may be adjusted from time to time. The agreement provides that the Company may, in its discretion, transfer or assign Mr. Wui to any position compatible with that of Field Operations Manager or to any of the companies in our Group.
Added
The Audit Committee Charter provides the members of the Audit Committee with authorization and authority to conduct continuous analysis of and review for any potential cybersecurity risks as part of the Company’s overall risk management program and to create a cyber-resilient organization, which will contribute to the value preservation of the Company.
Removed
Employment Agreement with Zhao Liang We entered into an employment agreement dated October 1, 2010 with Zhao Liang pursuant to which he was employed as Departmental Head of Designing for JCS-Echigo Pte Ltd. The agreement provides for a monthly base salary of S$3,400, which amount may be adjusted from time to time in the discretion of the Company.
Added
The Audit Committee Charter further provides authority and responsibility to the members of the audit committee to: (i) understand the economic drivers and impact of cyber-risk, including the financial impact to our Company; (ii) align cyber-risk management policies with our business needs by integrating cyber-risk analysis into significant business decisions; (iii) ensure our organizational structure supports cybersecurity goals; and (iv) incorporate cybersecurity expertise into board governance.
Removed
With effective from January 1, 2022, the monthly base salary has been revised to S$5,400. The agreement provides that the Company may, in its discretion, transfer or assign Mr. Zhao to any position compatible with that of Departmental Head of Design or to any of the companies in our Group. Under the terms of the agreement, Mr.
Added
For additional information regarding our Cybersecurity Policy, please refer to Item 16K included in this Annual Report on Form 20-F for the year ended December 31, 2023. Compensation committee Mr. Tay, Ms. Khoo and Mr. Singh will serve on the compensation committee, which will be chaired by Mr. Tay.
Removed
Hong Bee Yin US$ 72,000 Mr. Long Jia Kwang US$ 48,000 Mr. Karmjit Singh US$ 18,000 Mr. Tay Jingyan US$ 18,000 Ms. Khoo Su Nee, Joanne US$ 24,000 In addition, our directors will be entitled to participate in such share option scheme as may be adopted by the Company, as amended from time to time.
Added
Effective December 1, 2023, our Board of Directors amended the compensation committee charter (the “Compensation Committee Charter”) so as to include a compensation recovery policy (the “Compensation Recovery Policy”) and to give the compensation committee full authority and power to implement that policy.
Removed
The number of options granted, and the terms of those options will be determined from time to time by a vote of the board of directors; provided that each director shall abstain from voting on any such resolution or resolutions relating to the grant of options to that director.
Added
The Compensation Committee Charter provides the members of the compensation committee with authorization and authority to carry out such duties and responsibilities associated with the Compensation Recovery Policy.
Added
The compensation committee shall, in the event of a restatement of the Company’s financial statements, have the authority and power to: (i) determine such executive officers who served at any time during the performance period for the incentive-based compensation; (ii) determine the relevant recovery period; (iii) determine the amount of incentive-based compensation that must be subject to the Company’s Compensation Recovery Policy and establish procedures for recovery; (iv) maintain documentation of the above-referenced determinations; and (v) prepare and have filed all disclosures with respect to the Compensation Recovery Policy in accordance with federal securities laws, including the disclosure required in the applicable Securities and Exchange Commission filings.
Added
For additional information regarding our Compensation Recovery Policy, please refer to Exhibit 97.1 to this Annual Report. Nomination committee Mr. Singh, Ms. Khoo and Mr. Tay and will serve on the nomination committee, which will be chaired by Mr. Singh.
Added
Foreign Private Issuer Status The Nasdaq listing rules include certain accommodations in the corporate governance requirements that allow foreign private issuers, such as us, to follow “home country” corporate governance practices in lieu of the otherwise applicable corporate governance standards of the Nasdaq.
Added
Compensation Recovery Policy As required by the listing standards of the Nasdaq Listing Rules, Rule 10D under the Exchange Act, and Rule 10D-1 under the Exchange Act, the Compensation Committee of the Board of Directors has adopted a compensation recovery policy, also known as a clawback policy (the “Compensation Recovery Policy”), effective December 1, 2023.
Added
In the event of a restatement of the Company’s financial statements, the Compensation Recovery Policy requires the Company to recover the incremental portion of any incentive-based compensation received by any current or former executive officer of the Company that was in excess of the amount the officer would have received had his or her incentive compensation been determined based on the restated financial statements.
Added
Events requiring a restatement of financial statements include the material noncompliance of the Company with any financial reporting requirements under the securities laws, including any required accounting restatement to correct an error in previously issued financial statements 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
During and after the last completed fiscal year, the Company was not required to prepare an accounting restatement that required recovery of erroneously awarded compensation pursuant to the registrant’s Compensation Recovery Policy. For additional information regarding our Compensation Recovery Policy, please refer to Exhibit 97.1 to this Annual Report.
Added
Each Director’s Agreement is for an initial term of one year and will continue until the independent Non-executive Director’s successor is duly elected and qualified.

Item 7. Management's Discussion & Analysis

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

9 edited+1 added−1 removed6 unchanged
The following table sets forth the number of the Company’s ordinary shares beneficially owned as of December 31, 2022 by (i) those persons or groups known to beneficially own more than 5% of our ordinary shares; (ii) each executive officer and director; and (iv) all directors and executive officers as a group.
The following table sets forth the number of the Company’s ordinary shares beneficially owned as of December 31, 2023 by (i) those persons or groups known to beneficially own more than 5% of our ordinary shares; (ii) each executive officer and director; and (iv) all directors and executive officers as a group.
Set forth below are related party transactions of our Company for the financial years ended December 31, 2021 and 2022, which are identified in accordance with the rules prescribed under 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 years ended December 31, 2021, 2022 and 2023, which are identified in accordance with the rules prescribed under Form 20-F and may not be considered as related party transactions under Singapore law.
Hong Bee Yin, the Company’s controlling shareholder, for a revolving loan facility of up to US$1.1 million for general working capital and general corporate purposes, including the payment of expenses related to the Company’s initiative to raise capital through an initial public offering and simultaneous listing of the Company’s Ordinary Shares on a globally recognized stock exchange. Ms.
Hong Bee Yin, the Company’s controlling shareholder, for a revolving loan facility of up to approximately SGD 1.4 million (approximately US$ 1.1 million) for general working capital and general corporate purposes, including the payment of expenses related to the Company’s initiative to raise capital through an initial public offering and simultaneous listing of the Company’s ordinary shares on a globally recognized stock exchange.
Hong and the Company entered into a subsequent revolving loan facility on October 6, 2021 in the amount of US$0.7 million to be used for the same purposes. The total amount of the revolving loan facility of approximately US$1.8 million from Ms. Hong Bee Yin, the Company’s controlling shareholder, is non-trade, unsecured, interest-free and payable on demand.
Ms. Hong and the Company entered into a subsequent revolving loan facility on October 6, 2021 in the amount of SGD 1.0 million (approximately US$ 0.7 million) to be used for the same purposes. The total amount of the revolving loan facility of approximately SGD 2.4 million (approximately US$ 1.8 million) from Ms.
Hong Bee Yin. As of December 31, 2022, the amount of outstanding loan owed to Ms. Hong Bee Yin stood at US$0.6 million. Other than the above-mentioned disclosure, there were no significant related party transactions conducted during the years ended December 31, 2020, 2021 and 2022. Interests of Experts and Counsel Not Applicable Legal Proceedings Not Applicable 89
Hong Bee Yin is Nil. 85 Other than the above-mentioned disclosure, there were no significant related party transactions conducted during the years ended December 31, 2021, 2022 and 2023. Interests of Experts and Counsel Not Applicable Legal Proceedings Not Applicable
During the financial years ended December 31, 2021 and 2022, an amount of US$1.2 million and US$0.5 million, respectively, were drawn down from the original revolving loan facility made available by Ms. Hong Bee Yin to the Company in 2021. In the financial year ended December 31, 2022, the Company made a repayment of US$1.1 million to Ms.
Hong Bee Yin, the Company’s controlling shareholder, is non-trade, unsecured, interest-free and payable on demand. During the financial years ended December 31, 2021 and 2022, an amount of SGD 1.5 million (approximately US$ 1.2 million) and SGD 0.6 million (approximately US$ 0.5 million), respectively, were drawn down from the original revolving loan facility made available by Ms.
Including those shares in the tables does not, however, constitute an admission that the named stockholder is a direct or indirect beneficial owner of those shares.
Including those shares in the tables does not, however, constitute an admission that the named stockholder is a direct or indirect beneficial owner of those shares. 84 Except as indicated below, the stockholders listed possess sole voting and investment power with respect to their shares.
Except as indicated below, the stockholders listed possess sole voting and investment power with respect to their shares. 88 Name of Beneficial Owner Ordinary Shares Beneficially Owned Percent of Class (1) Named Executive Officers and Directors: Hong Bee Yin (1) 9,600,000 64 % Long Jia Kwang - - % Karmjit Singh - - % Tay Jingyan, Gerald - - % Khoo Su Nee, Joanne - - % All executive officers and Directors as a group (5 persons) 9,600,000 (1) 64 % 5% Shareholders: JE Cleantech Global Limited 9,600,000 64 % Triple Business Limited (2) 930,000 6 % (1) Represents shares held by JE Cleantech Global Limited, a company directly owned as to 100.00% by Ms.
Name of Beneficial Owner Ordinary Shares Beneficially Owned Percent of Class (1) Named Executive Officers and Directors: Hong Bee Yin (2) 3,200,000 64 % Long Jia Kwang - - % Karmjit Singh - - % Tay Jingyan, Gerald - - % Khoo Su Nee, Joanne - - % All executive officers and Directors as a group (5 persons) 3,200,000 (1) 64 % 5% Shareholders: JE Cleantech Global Limited 3,200,000 64 % (1) Based on 5,006,666 shares outstanding as of the date of this Annual Report.
(3) Based on 15,020,000 shares outstanding as of the date of this Annual Report. There are no arrangements known to us that may at a subsequent date result in a change in control of the Company.
(2) Represents shares held by JE Cleantech Global Limited, a company directly owned as to 100.00% by Ms. Hong. There are no arrangements known to us that may at a subsequent date result in a change in control of the Company.
Removed
Hong. (2) Triple Business Limited is an investment holding company incorporated on August 4, 2016. Triple Business Limited is beneficially and wholly-owned by Fuji Investment SPC, a regulated portfolio company incorporated in the Cayman Islands, none of the shareholders of which are Directors, officers or executives of the Group.
Added
Hong Bee Yin to the Company in 2021. In the financial year ended December 31, 2022 and 2023, the Company made a repayment of SGD 1.4 million (approximately US$ 1.1 million) and SGD 0.7 million (approximately US$ 0.6 million), respectively, to Ms. Hong Bee Yin. As of December 31, 2023, the amount of outstanding loan owed to Ms.

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