Business summary
The Group is the general contractor for infrastructure pipeline construction and related engineering services. It has been in business in Singapore for over 26 years, and its services mainly target the gas, water, telecommunications and power supply industries. Since its inception, the Group has successfully taken over a number of gas and water piping projects and communication cable projects for private and utility companies in Singapore. Group contracts are concluded on individual items. The experienced executive directors and senior management team led by Mr. Xu Yuanhua have contributed a lot to its development over the years, thereby establishing a leading position in the Singaporean industry. Based on revenue, the Group ranked third in the overall infrastructure pipeline engineering market and second in the gas pipeline engineering market in Singapore for the year ended March 31, 2018.
Competitive advantage
A leading infrastructure pipeline contractor in Singapore with an impressive track record and over 26 years of experience in the industry
Capable of providing a wide range of infrastructure pipeline engineering services and solutions according to the principles of punctuality, reliability and profitability
Maintain long-term relationships with key customers, suppliers and subcontractors
Risk Factors
Due to the unusual nature of group items, the failure to continuously obtain new items may have a significant impact on the composition of their financial performance
A large amount of revenue comes from sales to customer A, and customer A's decline in business or loss of that customer will have a significant adverse effect on its business, financial position, and operating performance
Revenue is calculated based on work orders within the fixed contract period. The income from the work order may be lower than the original contract amount
Use of proceeds
Approximately 59.7% will be used to move to new properties to be purchased before September 30, 2019
Approximately 31.2% will be used to add two tube toppers before June 30, 2019
Approximately 9.1% is used as general working capital