Sin Heng Heavy Machinery LimitedSGX: BKA

Financial Statements And Related Announcement - Full Yearly Results

Feb 27, 2025 at 9:27 AM UTC · Issued by Sin Heng Heavy Machinery Limited

SIN HENG HEAVY MACHINERY LIMITED AND ITS SUBSIDIARIES

Condensed Consolidated Financial Statements

For the six months and full year ended 31 December 2024

Table of Contents
A. Condensed statement of profit or loss and other comprehensive income	1
B. Statements of financial position	2
C. Statements of changes in equity	3
D. Consolidated statement of cash flows	5
E. Notes to the condensed consolidated financial statements	7
F. Other information required by Listing Rule Appendix 7.2	17

SIN HENG HEAVY MACHINERY LIMITED AND ITS SUBSIDIARIES

A. Condensed Statement of Profit or Loss and Other Comprehensive Income

		Group		Group
	Note	6 months	6 months		12 months	12 months
		ended 31	ended 31	Increase/	ended 31	ended 31	Increase/
		Dec 2024	Dec 2023	(Decrease)	Dec 2024	Dec 2023	(Decrease)
		S$'000	S$'000		S$'000	S$'000
Revenue	3	26,347	31,494	(16.3%)	50,281	66,230	(24.1%)
Cost of sales		(18,458)	(22,196)	(16.8%)	(33,562)	(47,798)	(29.8%)
Gross profit		7,889	9,298	(15.2%)	16,719	18,432	(9.3%)
Other operating income		979	1,949	(49.8%)	1,939	2,979	(34.9%)
Selling expenses		(161)	(174)	(7.5%)	(448)	(396)	13.1%
Administrative expenses		(5,169)	(5,382)	(4.0%)	(10,216)	(10,473)	(2.5%)
Other operating expenses		(126)	(226)	(44.2%)	(314)	(585)	(46.3%)
Finance costs		(92)	(99)	(7.1%)	(188)	(183)	2.7%
Profit before income tax	5	3,320	5,366	(38.1%)	7,492	9,774	(23.3%)
Income tax expense	4	(599)	(683)	(12.3%)	(1,225)	(1,779)	(31.1%)
Profit for the period		2,721	4,683	(41.9%)	6,267	7,995	(21.6%)
Profit attributable to:
Owners of the Company		2,721	4,683	(41.9%)	6,267	7,995	(21.6%)
Non-controlling interests		-	-	.-	-	-	.-
		2,721	4,683	(41.9%)	6,267	7,995	(21.6%)
Earnings per share (cents):	12
Basic		2.50	4.20	(40.5%)	5.75	7.12	(19.2%)
Diluted		2.50	4.20	(40.5%)	5.75	7.12	(19.2%)
Profit for the period		2,721	4,683	(41.9%)	6,267	7,995	(21.6%)
Other comprehensive
income/(loss):
Item that may be reclassified
subsequently to profit or loss
Exchange differences on
translation of foreign operations		488	(333)	(246.5%)	538	(1,016)	(153.0%)
Item that will not be reclassified
subsequently to profit or loss
Fair value gain arising from
financial assets at fair value
through other comprehensive
income (FVTOCI)		490	200	145.0%	490	200	145.0%
Total comprehensive income
for the period		3,699	4,550	(18.7%)	7,295	7,179	1.6%
Total comprehensive income
attributable to:
Owners of the Company		3,699	4,550	(18.7%)	7,295	7,179	1.6%
Non-controlling interests		-	-	.-	-	-	.-
		3,699	4,550	(18.7%)	7,295	7,179	1.6%

NM: Not Meaningful

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SIN HENG HEAVY MACHINERY LIMITED AND ITS SUBSIDIARIES

B. Statements of Financial Position

		Group		Company
	Note	As at 31	As at 31		As at 31	As at 31
		Dec 2024	Dec 2023		Dec 2024	Dec 2023
		S$'000	S$'000		S$'000	S$'000
ASSETS
Current assets
Cash and bank balances		47,855	44,638	19,289	22,310
Trade receivables		13,813	11,735	14,668	12,469
Other receivables and prepayments		477	1,238	350	2,223
Lease receivables		-	-	80	176
Inventories		2,633	3,990	1,852	2,572
Derivative financial instruments		1	-		3	-
Total current assets		64,779	61,601	36,242	39,750
Non-current assets
Property, plant and equipment	6	55,022	61,838	43,192	48,440
Right-of-use assets	7	3,151	3,332	3,079	3,173
Investment in subsidiaries		-	-	9,014	10,357
Financial assets at fair value through
profit or loss (FVTPL)		265	349	265	349
Financial assets at fair value through
other comprehensive income		1,190	700	1,190	700
Other assets		1,296	10		10	10
Total non-current assets		60,924	66,229		56,750	63,029
Total Assets		125,703	127,830	92,992	102,779
LIABILITIES AND EQUITY
Current liabilities
Derivative financial instruments		-	2	-	2
Trade payables		875	1,044	8,443	12,045
Other payables		4,291	4,689	3,928	4,463
Lease liabilities	9	2,499	2,914	2,499	2,914
Income tax payable		693	1,308		50	421
Total current liabilities		8,358	9,957	14,920	19,845
Non-current liabilities
Lease liabilities	9	3,308	5,806	3,308	5,806
Deferred tax liabilities		6,497	5,864		4,590	4,150
Total non-current liabilities		9,805	11,670	7,898	9,956
Capital and reserves
Share capital	10	41,846	41,846	41,846	41,846
Retained earnings		77,590	76,809	30,448	33,270
Treasury shares	11	(2,810)	(2,338)	(2,810)	(2,338)
Translation reserves		(8,853)	(9,391)	-	-
Capital reserve		(923)	(923)	-	-
Fair value reserve		690	200	690	200
Total equity attributable to owners
of the Company		107,540	106,203		70,174	72,978
Total Equity and Liabilities		125,703	127,830		92,992	102,779

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SIN HENG HEAVY MACHINERY LIMITED AND ITS SUBSIDIARIES

C. Statements of Changes in Equity

Group	Share	Treasury	Translation	Capital	Fair value	Retained	Total
	capital	shares	reserves	reserve	reserve	earnings	equity
	S$'000	S$'000	S$'000	S$'000	S$'000	S$'000	S$'000
2024
Balance at 1 January 2024	41,846	(2,338)	(9,391)	(923)	200	76,809	106,203
Total comprehensive income
for the period
Profit for the period	-	-	-	-	-	3,546	3,546
Other comprehensive income	-	-	50	-	-	-	50
for the period
Transactions with owners,
recognised directly in equity
Repurchase of shares	-	(472)	-	-	-	-	(472)
Dividends paid	-	-	-	-	-	(5,486)	(5,486)
Balance at 30 June 2024	41,846	(2,810)	(9,341)	(923)	200	74,869	103,841
Balance at 1 July 2024	41,846	(2,810)	(9,341)	(923)	200	74,869	103,841
Total comprehensive income
for the period
Profit for the period	-	-	-	-	-	2,721	2,721
Other comprehensive income	-	-	488	-	490	-	978
for the period
Balance at 31 December 2024	41,846	(2,810)	(8,853)	(923)	690	77,590	107,540
2023
Balance at 1 January 2023	41,846	(591)	(8,375)	(923)	-	72,783	104,740
Total comprehensive income
for the period
Profit for the period	-	-	-	-	-	3,312	3,312
Other comprehensive loss for	-	-	(683)	-	-	-	(683)
the period
Transactions with owners,
recognised directly in equity
Repurchase of shares	-	(253)	-	-	-	-	(253)
Dividends paid	-	-	-	-	-	(3,969)	(3,969)
Balance at 30 June 2023	41,846	(844)	(9,058)	(923)	-	72,126	103,147
Balance at 1 July 2023	41,846	(844)	(9,058)	(923)	-	72,126	103,147
Total comprehensive income
for the period
Profit for the period	-	-	-	-	-	4,683	4,683
Other comprehensive	-	-	(333)	-	200	-	(133)
(loss)/income for the period
Transaction with owners,
recognised directly in equity
Repurchase of shares	-	(1,494)	-	-	-	-	(1,494)
Balance at 31 December 2023	41,846	(2,338)	(9,391)	(923)	200	76,809	106,203

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SIN HENG HEAVY MACHINERY LIMITED AND ITS SUBSIDIARIES

C. Statements of Changes in Equity (cont'd)

Company	Share	Treasury	Fair value	Retained	Total
	capital	shares	reserve	earnings	equity
	S$'000 S$'000	S$'000	S$'000	S$'000
2024
Balance at 1 January 2024	41,846	(2,338)	200	33,270	72,978
Profit for the period, representing total
comprehensive income for the period	-	-	-	2,218	2,218
Transactions with owners, recognised directly
in equity
Repurchase of shares	-	(472)	-	-	(472)
Dividends paid	-	-	-	(5,486)	(5,486)
Balance at 30 June 2024	41,846	(2,810)	200	30,002	69,238
Balance at 1 July 2024	41,846	(2,810)	200	30,002	69,238
Total comprehensive income for the period
Profit for the period	-	-	-	446	446
Other comprehensive income for the period	-	-	490	-	490
Balance at 31 December 2024	41,846	(2,810)	690	30,448	70,174
2023
Balance at 1 January 2023	41,846	(591)	-	34,502	75,757
Profit for the period, representing total
comprehensive income for the period	-	-	-	928	928
Transactions with owners, recognised directly
in equity
Repurchase of shares	-	(253)	-	-	(253)
Dividends paid	-	-	-	(3,969)	(3,969)
Balance at 30 June 2023	41,846	(844)	-	31,461	72,463
Balance at 1 July 2023	41,846	(844)	-	31,461	72,463
Total comprehensive income for the period
Profit for the period	-	-	-	1,809	1,809
Other comprehensive income for the period	-	-	200	-	200
Transaction with owners, recognised directly
in equity
Repurchase of shares	-	(1,494)	-	-	(1,494)
Balance at 31 December 2023	41,846	(2,338)	200	33,270	72,978

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SIN HENG HEAVY MACHINERY LIMITED AND ITS SUBSIDIARIES

D. Consolidated Statement of Cash Flows

	Group
	12 months	12 months
	ended	ended
	31 Dec 2024	31 Dec 2023
	S$'000	S$'000
Cash flows from operating activities
Profit before income tax	7,492	9,774
Adjustments for:
Depreciation of property, plant and equipment	6,016	6,452
Depreciation of right-of-use assets	181	272
(Reversal of impairment loss)/Impairment loss on financial assets	(1)	201
Interest expense	188	183
Interest income	(1,316)	(1,120)
Net unrealised foreign exchange gain	(22)	(12)
Bad debts written off	-	86
Bad non-trade debts written off	39	-
Property, plant and equipment written off	43	90
Gain on disposal of property, plant and equipment	(327)	(1,291)
Fair value changes on derivative financial instruments	(3)	(136)
Fair value changes arising on financial assets designated as FVTPL	76	81
Operating cash flows before movements in working capital	12,366	14,580
Trade receivables	(2,091)	(2,753)
Other receivables and prepayments	768	876
Inventories	4,915	15,157
Trade payables	(169)	57
Other payables	(400)	1,658
Cash generated from operations	15,389	29,575
Income tax paid	(1,215)	(1,335)
Purchase of property, plant and equipment	(2,270)	(17,518)
Net cash from operating activities	11,904	10,722
Cash flows from investing activities
Interest received	1,316	1,120
Purchase of property, plant and equipment	(447)	(5,580)
Purchase of financial assets designated as FVTOCI	-	(500)
Purchase of golf club memberships	(1,286)	-
Proceeds from disposal of property, plant and equipment	351	5,849
Proceeds from disposal of financial assets designated as FVTPL	8	1,800
Bank fixed deposits with maturity of more than 3 months (Note 1)	(19,135)	-
Net cash (used in)/from investing activities	(19,193)	2,689
Cash flows from financing activities
Bills payable	-	(1,135)
Interest paid	(188)	(183)
Proceeds from hire purchase facilities	-	3,328
Repayment of lease liabilities	(2,913)	(2,878)
Purchase of treasury shares	(472)	(1,747)
Dividends paid	(5,486)	(3,969)
Net cash used in financing activities	(9,059)	(6,584)
Net (decrease)/increase in cash and cash equivalents	(16,348)	6,827
Cash and cash equivalents at beginning of year	44,638	38,051
Effect of foreign exchange rate changes on the balance of cash held in
foreign currencies	430	(240)
Cash and cash equivalents at end of year	28,720	44,638

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SIN HENG HEAVY MACHINERY LIMITED AND ITS SUBSIDIARIES

D. Condensed Interim Statement of Cash Flows (cont'd)

Note 1: For the purpose of the condensed interim statement of cash flows, cash and cash equivalents comprised:

	Group
	12 months	12 months
	ended 31 ended 31 Dec
	Dec 2024	2023
	S$'000	S$'000
Cash at banks and on hand	16,870	9,632
Bank fixed deposits	30,985	35,006
	47,855	44,638
Less: Bank fixed deposits with maturity of more than 3 months	(19,135)	-
Cash and cash equivalents presented in the statement of cash flows	28,720	44,638

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SIN HENG HEAVY MACHINERY LIMITED AND ITS SUBSIDIARIES

E. Notes to the Condensed Consolidated Financial Statements

Corporate Information
Sin Heng Heavy Machinery Limited (the "Company") is incorporated and domiciled in Singapore and whose shares are publicly traded on the Mainboard of the Singapore Exchange. These condensed consolidated financial statements as at and for the six months ended 31 December 2024 comprise the Company and its subsidiaries (collectively, the "Group").
The primary activities of the Company are those of hiring and dealing in cranes and heavy machinery and provision of facilities and custody services.
Basis of Preparation

2.1. Statement of compliance

The condensed interim financial statements for the six months ended 31 December 2024 have been prepared in accordance with Singapore Financial Reporting Standards (International) ("SFRS(I)") 1-34 Interim Financial Reporting issued by the Accounting Standards Council Singapore. The condensed financial statements do not include all the information required for a complete set of financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and the performance of the Group since the last interim financial statements for the period ended 30 June 2024.

The Group has applied accounting policies and methods of computation in the financial statements for the current reporting period consistent with those of the audited financial statements for the year ended 31 December 2023.

In the current financial period, the Group has adopted all the new and revised SFRS(I) that are relevant to its operations and effective for annual periods beginning on 1 January 2024. The Group did not have to change its accounting policy or make retrospective adjustments as a result of adopting these standards.

The condensed financial statements are expressed in Singapore dollars which is the Company's functional currency.

2.2. Basis of measurement

The condensed financial statements have been prepared on the historical cost basis except as otherwise described in the notes below.

The condensed financial statements have been prepared on a going concern basis, since the directors have verified that there are no financial, operating or other types of indicators that might cast significant doubt upon the Group's ability to meet its obligations in the foreseeable future and particularly within the 12 months from the end of the reporting period.

2.3. Uses of estimates and judgements

The preparation of the condensed financial statements in conformity with SFRS(I) requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

The significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 31 December 2023.

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SIN HENG HEAVY MACHINERY LIMITED AND ITS SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements (cont'd)

2. Basis of Preparation (cont'd)

2.3. Uses of estimates and judgements (cont'd)

Critical judgements in applying the entity's accounting policies

Management is of the opinion that there are no critical judgements involved that have a significant effect on the amounts recognised in the financial statements, except for those involving estimation uncertainties as disclosed below.

Key sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of asset and liabilities within the next financial year, are discussed below:

Impairment of cranes and aerial lifts classified as property, plant and equipment

The management will assess whether they are any indicators of impairment of its cranes and aerial lifts classified as property, plant and equipment ("PPE"). For those PPE where there are indicators, the management estimates the recoverable amounts of such assets to determine the extent of the impairment loss, if any. The recoverable amounts of such assets are determined based on value in use calculations which require the use of key estimates such as utilisation rates and discount rate.

Allowance for inventories

In determining the net realisable value of the cranes and aerial lifts classified as inventories, an estimation of the recoverable amount of inventories on hand is performed by management based on the most reliable evidence available at the time the estimates are made. Management judgement regarding future market and economic conditions is involved in determining the net realisable value of inventories.

Allowance for trade receivables

Management judgement is required in assessing the ultimate realisation of the trade receivables. This involves an assessment of the Group's historical loss rates and estimates of expected future loss rates, management's assessment of forward looking macro-economic factors and the eventual expected credit losses in accordance with SFRS(I) 9.

3. Segment and Revenue Information

For the purpose of the resource allocation and assessment of segment performance, the Group's chief operating decision maker has focused on the business operating units which in turn, are segregated based on their goods and services. This forms the basis of identifying the operating segments of the Group under SFRS(I) 8 Operating segments as follows:

Operating segments are segregated into a single reportable operating segment if they have similar economic characteristics, such as long-term average gross margins, and are similar in respect of nature of services and processes, type of customers, methods of distribution, and/or their reported revenue, absolute amount of profit or loss and assets are not material to the consolidated totals of all operating segments.

The Group's reportable operating segments are as follows:

Segment 1: Equipment Rental
Segment 2: Trading

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