Comprehensive Overview

The Group is the general contractor specializing in infrastructure pipeline construction and related engineering services. It has been operating in Singapore for over 26 years. Its services mainly target the gas, water, telecommunications and power supply industries. Since opening, the Group has 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.

According to Frost & Sullivan's report, in terms of 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 ending the end of March 2018. Projects accepted by groups are generally obtained through competitive bidding procedures. Group contracts are generally in the form of (i) a package contract (the group undertakes to complete the entire project, which is then handed over to the customer in a fully operable form) or (ii) a term contract (the group provides services within a fixed contract period in accordance with the client's work instructions). The Group is mainly responsible for providing engineering services along with the required machinery, labor and expertise for pipeline projects stipulated in complete contracts or fixed-term contracts.

Risk Factors

The group's items are unconventional in nature. If the group is unable to continuously obtain new projects, it will have a significant impact on the financial composition of the group. In addition, for the three years ending March 31, 2018 and the six months ending September 30, 2018, the Group's revenue from its largest customers reached 71.0%, 74.0%, 57.0% and 19.3%, respectively. If the Group was unable to maintain a business relationship with the customer, it would have a significant adverse impact on the Group's performance.