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Condensed Interim Financial Statements For The Six Months Ended 30 June 2023

Financials Archive

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Profit & Loss


Balance Sheet

Review of Performance
Review of Statement of Comprehensive Income


The Group's revenue for HY2023 rose by 34% or $6.00 million to $23.70 million, as compared to $17.71 million in the corresponding period last year. The increase in revenue was mainly due from the following segments:

  • Energy services segment - up by $4.62 million;
  • Marine segment - higher by $3.06 million; offset with
  • Offshore & Engineering segment - lowered by $1.68 million.

Offshore & Engineering segment

The decrease in revenue in the Offshore & Engineering segment of $1.68 million was primarily due to the following factors:

  1. lower revenue contribution in the offshore structure and steel fabrication business in HY2023 of $1.13 million, from $2.34 million in HY2022 to $1.21 million in HY2023, following the Group's review to reduce these activities due to a competitive operating environment and margin compression; and
  2. decline in revenue from precision engineering business of $0.55 million from $1.59 million in HY2022 mainly due to lower volume of work done for two customers.

Marine segment

Marine segment revenue increased by $3.06 million or 42%, from $7.28 million in HY2022 to $10.34 million in HY2023, which was attributable to:

  1. increase in Marine's MRO (maintenance, repairs and overhaul) service revenue by $1.91 million, from $3.59 million in HY2022 to $5.50 million in HY2023. Ship repair works and propulsion system MRO service revenue contributed to increases of $0.81 million and $1.10 million respectively; and
  2. a 31% increase in revenue for new build propeller, from $3.69 million in HY2022 to $4.84 million in HY2023.

Energy Services segment

The Energy Services segment reported a revenue growth of 71% to $11.11 million in HY2023 ($6.49 million in HY2022), driven by increased demands from key accounts, effective implementation of expansion of existing/ new processing capacity resulting in generation of revenue streams and broadening of customer base.

Cost of sales, gross profit and gross profit margin

Cost of sales of $16.07 million in HY2023 increased by $1.93 million or 14% in line with the increase in revenue generated by Energy Services and Marine segments.

Overall, the gross profit of the Group jumped by 114% or $4.06 million, from $3.57 million in HY2022 to $7.63 million in HY2023. The increase was attributable to the higher margin contributions from the Energy Services segment and Marine's MRO and new build propeller, which are in line with the higher revenue.

Consequently, the Group's gross profit margin (as a percentage over revenue) was up by 12%, from 20% in HY2022 to 32% in HY2023.

Administrative expenses

Administrative expenses increased by $243,000 or 5% mainly due to professional fees and general expenses incurred in relation to the disposal of Vac-Tech of approximately $331,000.

Finance expenses

Finance expenses for HY2023 increased by $1.87 million or 93%, from $2.01 million in HY2022 to $3.88 million in HY2023 mainly due to higher effective interest rate on bank borrowings.

Share of loss of associated companies

The Group recorded a lower share of losses of $37,000 from its remaining associated company, Menji Group in HY2023 as compared to $155,000 from its two associated companies in HY2022 comprising of Menji Group and Vac-Tech.

Profit from continuing operations

As a result of the foregoing, net profit from continuing operations increased by $2.83 million or 930%, from $304,000 as of HY2022 to $3.13 million as of HY2023.

Review of Balance Sheet

Current assets

The Group's current assets as at 30 June 2023 decreased by $0.86 million or 1% from $109.77 million as at 31 December 2022 was attributable to the following:

  1. decrease in assets of disposal group of $4.07 million mainly due to the legal completion of disposal of Vac-Tech.;
  2. net decrease in trade and other receivables and contract assets of $0.51 million and $0.12 million respectively due mainly to higher collections from customers; and
  3. decrease in inventories of $0.15 million mainly due to higher consumption of consumables in precision engineering business of $0.11 million; offset with
  4. increase in cash and cash equivalents by 44% or $3.98 million as explained (please refer Review of Condensed Interim Consolidated Statement of Cash Flows).
Non-current assets

The Group's non-current assets of $83.32 million as at 30 June 2023 was down by 9% or $7.97 million, from $91.29 million as at 31 December 2022. The decrease was mainly due to:

  1. decrease in property, plant and equipment of $7.94 million;
  2. decrease in investment in associated companies of $0.04 million.
Current liabilities

The Group's current liabilities decreased by $1.84 million or 2% from $88.82 million as at 31 December 2022, to $86.98 million as at 30 June 2023, mainly due to:

  1. decrease in trade and other payables of $0.40 million, mainly due to payment of accruals;
  2. decrease in current borrowings of $0.64 million, due to net repayment of trade financing;
  3. decrease in current income tax liabilities of $0.58 million, arising from current income tax payment of $0.74 million offset with provision of current income tax of $0.16 million; and
  4. decrease in liabilities under disposal group of approximately $0.79 million mainly due to monthly repayment of borrowings; offset with
  5. increase in contract liabilities of $0.57 million due mainly to advances received from customers of approximately $0.64 million for new build propellers.
Non-current liabilities

The Group registered a decrease in non-current liabilities of approximately $10.47 million or 13% from $81.37 million as at 31 December 2022 to $70.90 million as at 30 June 2023 due to a reduction in noncurrent borrowings because of monthly repayment of bank loans and lease liabilities.

Review of Condensed Interim Statement of Cash Flows

The Group has a net cash inflow from operating activities of $10.85 million due to:

  • higher operating income before changes in working capital of $8.49 million;
  • net increase in working capital of $3.10 million; offset with
  • income tax paid, $0.74 million.

Net cash provided by investing activities of $9.19 million due to the following:

  1. proceeds from disposal of non-current assets classified as held-for-sale of $5.87 million;
  2. proceeds from disposal of PPE of $4.57 million; offset with
  3. purchase of PPE of $1.25 million of which $1.27 million was related to capacity expansion on Energy Services segment.

Net cash used in financing activities of $16.06 million was related to the:

  1. repayment of bank borrowings $10.43 million;
  2. interest payments of $3.93 million;
  3. repayment of lease liabilities of $1.15 million; and
  4. net repayment of trade financing of $0.55 million.


The Group improved its revenue and profitability compared to the corresponding period last year. However, it continued to face high interest costs and inflationary pressures such as materials, personnel and utilities. For the remainder of 2023, these costs are expected to remain at high levels and present continued challenges to the Group's operating segments (Offshore & Engineering, Marine and Energy Service).

The Group will continue to focus on mitigating these challenges by expanding its waste treatment capabilities and processes to further drive revenue growth. The Marine segment's production of propulsion systems will continue to strategically expand its presence in overseas markets and further consolidate its leadership position in the industry by developing its own technological and additive manufacturing capabilities.

The Group will intensify its marketing efforts to improve sales performance while continuing its cost containment measures to keep costs down.