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DIRECTORY OF SINGAPORE PROCESS & CHEMICALS INDUSTRIES 2021/2022
Hai Leck Holdings Limited’s results for first nine months ended 31 March 2021 showed it continued to be profitable, after a creditable performance that saw it reporting revenue of S$95.4 million and a net profit of S$4.1 million in financial year 2020.
Revenue for the period increased by S$11 million to S$68.7 million compared to S$57.6 million recorded in the nine months in 2020 “due to higher contact centre services revenue, partially offset by lower project and maintenance services revenue”. Other income increased from S$0.8 million in 9M20 to S$6.1 million in 9M21, mainly due to the recognition of government grants.
Its cost of sales for the period increased by 37.5% to S$39.7 million in line with higher level of activities
Profit attributable to equity holders for 9M21 increased by S$5.1 million to S$7.7 million compared to S$2.6 million in 9M20.
Nordic Group Limited reported revenue of S$80.8 million for the year ended 31 December 2020, a slight drop from S$84.6 million in 2019. Its net profit saw a bigger dip of 35% to S$5.5 million from S$8.5 million in 2019.
The company said performance in the first half of the year was impacted by the pandemic, but recovered strongly in the second half to almost pre-Covid level with revenue jumping 46% to S$48 million from S$33 million in 1H2020.
It said that since mid-march 2020, its factories in China have been fully functional. Revenue contribution from China was 26.2% while Singapore remained its key revenue driver at 73.8%.
Its order book stood at S$89 million at the end of 2020, compared to S$92 million in 2019. The Group added that between January 2020 and February 2021, it had secured new contracts totalling approximately S$117.2 million.
For Mun Siong Engineering Limited, 2020 was an unforgettable year as the company faced up to the challenges of the Covid-19 pandemic. It saw its revenue for the year ended 31 December 2020 take a 33.5% dive to S$46.9 million from S$70.5 million in 2019. It reported a loss of S$527,000 compared to a profit of S$501.000 in 2019.
The company said the revenue decline “was the worst we have ever encountered since our listing on the mainboard on the SGX-ST in 2010”.
Its operations in Malaysia and Taiwan were also impacted by the pandemic’s safety management measures arising from the lockdowns.
“Without the financial support from the Singapore Government, we would have achieved a loss before taxation of S$8.4 million in FY2020,” the company said.
The Group said that going forward it will be “reaching out to the renewables and pharmaceutical industries in the near future whose sustainability is one of the key evaluation considerations”.
SME process players mostly struggle to stay afloat
Very few PCM companies were spared from the maelstrom which engulfed the workers’ dormitories as nearly half the migrant workers housed in dormitories had tested positive. With challenges in worker deployment and lower work volume as contracts were deferred or terminated, revenues took a hit. Companies interviewed reported revenues drop of up to 50% in 2020 while expenses spiked.
The severity of the situation for many ASPRI members was best described by Mr James Goh, CEO of FRP Products Co Pte Ltd. For the first time after 40 years in the industry, he was “not so optimistic anymore”.
Mr Goh, who is also the Immediate Past President in ASPRI’s 13th Executive Council, said the pandemic had further compounded the difficulties of the industry that has continued to face unstable oil prices and increasing pressure on carbon emission.
While the situation looked dire in the face of the Covid fire in 2020, many specialist small and medium sized players had kept their faith and emerged none the worse, and are now looking forward to better outcomes in 2021.
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