The Group is a Singaporean mechanical and electrical service provider with a 30-year history of operation. It specializes in providing electrical engineering solutions. The Group's electrical engineering services mainly include the manufacture and/or installation of electrical systems; assistance in obtaining legal approval; and testing and commissioning. The Group's electrical engineering services are in demand for a wide range of new building development, reconstruction, addition and remodeling, and renewal projects involving residential, commercial and industrial buildings. In particular, the Group has a strong track record in undertaking electrical projects for public housing development projects initiated by the Housing and Development Authority (the public housing agency of the Singapore Government). During the performance recording period, most of the Group's revenue came from public housing development projects. The Group's clients mainly include building contractors and local statutory bodies in Singapore.
The five largest clients accounted for 68.8%, 59.7%, 45.2% and 62.3% of total revenue.
Competitive advantage
The electrical engineering industry in Singapore has established a reputation
Strict quality control and high safety standards and environmental impact control
Experienced and professional management team
Risk Factors
The revenue mainly comes from electrical engineering services, and customer engagements are unusual, so there is no guarantee that new projects will be obtained
The Singapore Government's reduction in the level of spending on public housing development projects may have a significant adverse impact on group business and financial conditions
Any failure to renew or revoke or register existing permits and registrations may have a significant impact on the Group's operations and financial performance
Use of proceeds
Approximately 42.7% was used to acquire ACMV contractors in Singapore
Approximately 15.3% is used to strengthen manpower through recruitment of additional workers
Approximately 10.9% was used to purchase property
Approximately 10.0% is used to fund upfront costs and working capital requirements in the early stages of electrical engineering projects
Approximately 8.4% was used to fund the purchase of additional equipment and equipment
Approximately 5.4% were used to purchase building information modeling software along with some supporting hardware equipment and upgrading enterprise resource planning systems
Approximately 1.7% was used to purchase three value-added vehicles
Approximately 5.6% is used for general working capital