UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
6-K
Report
of Foreign Issuer
Pursuant
to Rule 13a-16 or 15d-16 of
the
Securities Exchange Act of 1934
For
November 30, 2022
Commission
File Number: 001-41335
JE
CLEANTECH HOLDINGS LIMITED
(Exact
name of Registrant as specified in its charter)
Cayman
Islands
(Jurisdiction
of incorporation or organization)
3
Woodlands Sector 1
Singapore
738361
(Address
of principal executive offices)
Bee
Yin Hong, CEO
Tel:
+65 6368 4198
Email:
Elise.hong@jcs-echigo.com.sg
3
Woodlands Sector 1
Singapore
738361
(Name,
Telephone, email and/or fax number and address of Company Contact Person)
Indicate
by check mark whether the Registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form
20-F ☒ Form 40-F ☐
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Note
: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual
report to security holders.
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
Note:
Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that
the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated,
domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on
which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to
be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the
subject of a Form 6-K submission or other Commission filing on EDGAR.
TABLE
OF CONTENTS
JE
Cleantech (JCSE) Announces Strong Growth in Q3 2022
Revenue
Increased by Approximately 142% year-on-year
Net
Income and Earnings Per Share Witnessed A Strong Turnaround
2022
Q3 Financial1 & Business Highlights
| |
● |
Revenue
was approximately S$5.9 million, an increase of 141.8% year-over-year |
| |
● |
Net
Income reached approximately S$0.6 million, a strong turnaround from the net loss of approximately S$0.2 million at same period
last year |
| |
● |
Gross
Profit amounted to approximately S$1.5 million, an increase of 296.1% year-over-year |
| |
● |
The
growth in revenue for Q3 is mainly due to the increase in revenue from the sale of cleaning systems and other equipment business,
which recorded a triple-digit growth compared to the same period last year |
| |
● |
Sales
of cleaning systems and other equipment business has increased with the revenue generated from this sector increasing 10 times for
the same period in the fiscal year of 2021 |
Singapore,
xx November 2022 - JE Cleantech Holdings Limited (Nasdaq: JCSE), (“the Company”) a Singapore-based cleantech company,
today announced encouraging Q3 financial results, for the three months period ended 30 September 2022 (the “reporting period”).
During the reporting period, the Company has maintained
strong growth in its overall business performance with revenue that more than doubled and a strong turnaround in net income.
For
the three months period ended September 30, 2022, the Company’s total revenue increased by approximately S$3.5 million or 141.8%
to approximately S$5.9 million from approximately S$2.4 million in the quarter ended September 30, 2021. The increase was mainly derived
from the increase in revenue generated from the Company’s sale of cleaning systems and other equipment business of approximately
S$3.2 million and the provision of centralized dishwashing and ancillary services business of approximately S$0.3 million, attributable
to the post COVID-19 recovery of business.
Net
income of the Company for the reporting period amounted to approximately S$0.6 million, compared to a net loss of approximately S$0.2
million in the same period last year, indicating a significant turnaround for its business performance.
During
the reporting period, the Company recorded a gross profit margin of approximately 26.0%, an increase of 63.5% year-over-year. Diluted
Earnings Per Share was approximately S$0.05, compared to the basic losses per share of approximately S$0.01 during the same period in
2021.
Ms.
Bee Yin Hong, CEO and Founder, JE Cleantech said,
“We are excited to announce that JE Cleantech has performed well during Q3 2022. Our Q3 results reflect our strong focus on exploiting
the rapid recovery of the electronic manufacturing and F&B sectors. As a leading manufacturer of precision cleaning systems and provider
of centralized dishwashing and ancillary services in Singapore, we will continue to drive our long-term expansion plans”.
JE
Cleantech has been providing centralized dishwashing services in Singapore since 2013, for customers in various industries, including
HDD manufacturing, semiconductor manufacturing, food and beverage, and public transportation. The Company’s revenue contributes
approximately 15 per cent market share in 2020 in terms of revenue (source: Euromonitor estimates from desk research and trade interviews
with leading centralized dishwashing services providers and the relevant trade associations in Singapore). Moving forward, the Company
will persistently spare no efforts in further expanding its business, widening its product offerings to more industries, growing its
market share, and generating long-term and sustainable returns for its shareholders and investors.
###
1
These financial and other data for the three months and nine months periods ended September 30, 2021 and 2022 have not been audited
or reviewed by the Auditors.
About
JE Cleantech Holdings Limited
JE
Cleantech Holdings Limited is based in Singapore and is principally engaged in (i) the sale of cleaning systems and other equipment;
and (ii) the provision of centralized dishwashing and ancillary services. Through its subsidiary, JCS-Echigo Pte Ltd, the company designs,
develops, manufactures, and sells cleaning systems for various industrial end-use applications primarily to customers in Singapore and
Malaysia. Its cleaning systems are mainly designed for precision cleaning, with features such as particle filtration, ultrasonic or megasonic
rinses with a wide range of frequencies, high pressure drying technology, high flow rate spray, and deionized water rinses, which are
designed for effective removal of contaminants and to minimize particle generation and entrapment. The Company also has provided centralized
dishwashing services, through its subsidiary, Hygieia Warewashing Pte Ltd, since 2013 and general cleaning services since 2015, both
mainly for food and beverage establishments in Singapore.
Disclaimer:
Forward looking statements
This
news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities and Exchange Act of 1934, as amended. Forward-looking statements may be identified by such words or phrases as
“should,” “intends,” “is subject to,” “expects,” “will,” “continue,”
“anticipate,” “estimated,” “projected,” “may,” “I or we believe,” “future
prospects,” “our strategy,” or similar expressions. Forward-looking statements made in this press release that relate
to our future contract revenues among other things involve known and unknown risks and uncertainties that may cause the actual results
to differ materially from those expected and stated in this announcement. We undertake no obligation to update “forward-looking”
statements.
For
Media Enquiries and Investor Relations, please contact:
jcse@preciouscomms.com
SUMMARY
CONDENSED CONSOLIDATED FINANCIAL AND OTHER DATA
Balance
Sheet Data
| | |
As
of
December 31, | | |
As
of September 30, | |
| | |
2021 | | |
2022 | | |
2022 | |
| | |
SGD’000 | | |
SGD’000 | | |
US$’000 | |
| | |
(Audited) | | |
(Unaudited) | | |
(Unaudited) | |
| Cash and cash equivalents | |
| 1,108 | | |
| 5,859 | | |
| 4,084 | |
| Working capital | |
| 3,220 | | |
| 4,987 | | |
| 3,476 | |
| Total assets | |
| 18,440 | | |
| 32,580 | | |
| 22,708 | |
| Total liabilities | |
| 15,417 | | |
| 16,779 | | |
| 11,695 | |
| Total shareholders’ equity | |
| 3,023 | | |
| 15,801 | | |
| 11,013 | |
Results
of Operations Data
| | |
For
the Three months ended September 30, | | |
For
the Nine months ended September 30, | |
| | |
2021 | | |
2022 | | |
2021 | | |
2022 | | |
2022 | |
| | |
SGD’000 | | |
SGD’000 | | |
SGD’000 | | |
SGD’000 | | |
USD’000 | |
| | |
(Unaudited) | | |
(Unaudited) | | |
(Unaudited) | | |
(Unaudited) | | |
(Unaudited) | |
| Revenues | |
| 2,439 | | |
| 5,897 | | |
| 11,347 | | |
| 13,094 | | |
| 9,127 | |
| Net income | |
| (158 | ) | |
| 590 | | |
| 458 | | |
| 737 | | |
| 514 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net income per share attributable
to ordinary shareholders | |
| | | |
| | | |
| | | |
| | | |
| | |
| basic and diluted | |
| (0.01 | ) | |
| 0.05 | | |
| 0.04 | | |
| 0.05 | | |
| 0.04 | |
| Weighted average number of ordinary shares
used in computing net income per share | |
| | | |
| | | |
| | | |
| | | |
| | |
| basic and diluted | |
| 12,000,000 | | |
| 13,167,956 | | |
| 12,000,000 | | |
| 13,167,956 | | |
| 13,167,956 | |
Calculated
at the rate of US$0.6970 = SGD$1, as set forth in the statistical release of the Federal Reserve System on September 30, 2022.
Notes
to condensed consolidated financial and other data
For
the three months and nine months periods ended September 30, 2021 and 2022
| 1. |
These
summary consolidated financial data, including the consolidated balance sheet as of December 31, 2021, which was derived from audited
financial statements, do not include all of the information and notes required by U.S. Generally Accepted Accounting Principles for
complete financial statements and should be read in conjunction with the consolidated financial statements and accompanying notes
included in the Company’s annual report on Form 20-F for the fiscal year ended December 31, 2021. |
| |
|
| 2. |
In
the opinion of the management, all adjustments (consisting of normal, recurring adjustments) considered necessary for a fair presentation
have been included for the condensed consolidated financial and other data for the three months and nine months periods ended September
30, 2021 and 2022. Operating results for the interim periods presented are not necessarily indicative of the results that may be
expected for the full year ending December 31, 2022. These financial and other data for the three months and nine months periods
ended September 30, 2021 and 2022 have not been audited or reviewed by the Company’s independent Auditors. |
Key
Factors Affecting the Results of Our Group’s Operations
Our
financial condition and results of operation have been and will continue to be affected by a number of factors, many of which may be
beyond our control, including but not limited to those factors set out below:
Demand
from our major customer groups
Our
aggregate sales generated from our top five customers were approximately 80.6% and 69.9% of our revenue for the nine months periods ended
September 30, 2021 and 2022, respectively. Accordingly, our sales would be significantly affected by the demands of our top five customer
groups, and particularly our largest customer group, as well as certain inherent risks, among others, changes and development in the
local political, regulatory and business conditions, that may affect their purchases from us, many of which are beyond our control. These
uncertainties could have a material adverse effect on our business, results of operations and financial conditions, and affect our ability
to remain profitable and achieve business growth.
Non-recurring
nature of our sale of cleaning systems and other equipment business
We
design, manufacture and sell cleaning systems and other equipment on an order-by-order basis. Our customers are under no obligation to
continue to award contracts to or place orders with us and there is no assurance that we will be able to secure new orders in the future.
Moreover, our Group generally must go through a tendering or quotation process to secure new orders, and the number of orders and the
amount of revenue that we are able to derive therefrom are affected by a series of factors including but not limited to changes in our
clients’ businesses and changes in market and economic conditions. The result of such process is beyond our control and there is
no assurance that our Group will secure new projects from future tender submissions or new orders. Accordingly, our results of operations,
revenue and financial performance may be adversely affected if our Group is unable to obtain new orders from our customers of contract
values, size and/or margins comparable to previous orders.
Fluctuations
in the cost of our raw materials
Raw
materials, such as steel and electronic components, are the largest component of our cost of revenues, representing approximately 51.3%
and 46.8% of our total cost of revenues for the nine months periods ended September 30, 2021 and 2022, respectively. As our contract
price is fixed once our customer confirms an order for a cleaning system or other equipment, it is difficult for us to manage the pricing
of our cleaning systems and other equipment to pass on any increase in costs to our customers. Any fluctuations in the cost of raw materials
would affect our profitability.
The
prices at which we purchase such raw materials are determined principally by market forces such as the relevant supply and demand of
such raw materials, as well as our bargaining power with our suppliers. We monitor supply and cost trends of these raw materials and
take appropriate action to obtain the materials we need for production. We expect fluctuations in the cost of key materials to continue
to affect our margins.
All
of the raw materials we procure, including stainless steel, aluminum and electronic components, are purchased from a number of suppliers
to ensure adequate supply and efficient delivery to our production and processing facilities.
Management’s
Discussion and Analysis of Financial Condition and Results of Operations
Overview
Our
Group is based in Singapore and is principally engaged in (i) the sale of cleaning systems and other equipment; and (ii) the provision
of centralized dishwashing and ancillary services. Our Group commenced business in the selling of cleaning systems in 2005, before starting
our business in the design, development, manufacture and sale of cleaning systems in Singapore in 2006. We design, develop, manufacture
and sell cleaning systems for various industrial end-use applications to our customers mainly in Singapore and Malaysia. We also have
provided centralized dishwashing services since 2013 and general cleaning services since 2015 mainly for food and beverage establishments
in Singapore.
For
the nine months periods ended September 30, 2021 and 2022, our revenue amounted to approximately S$11.3 million, and S$13.1 million,
respectively. Our net income amounted to approximately S$0.5 million and S$0.7 million for the nine months periods ended September 30,
2021 and 2022, respectively.
For
the three months periods ended September 30, 2021 and 2022, our revenue amounted to approximately S$2.4 million, and S$5.9 million, respectively.
Our net loss amounted to approximately S$0.2 million and net income amounted to S$0.6 million for the three months periods ended September
30, 2021 and 2022, respectively.
The
following discussion is based on our Group’s historical results of operations and may not be indicative of our Group’s future
operating performance.
Revenue
During
the nine months periods ended September 30, 2021 and 2022, our customers were from various industries, including HDD manufacturing, semiconductor
manufacturing, food and beverage and public transportation. As of the date of this Form, our customers continue to be from such various
industries. Our cleaning systems and other equipment are mainly sold in Singapore and Malaysia, and we provided centralized dishwashing
and ancillary services to customers in Singapore.
Our
revenue was derived from (i) sale of cleaning systems and other equipment business; and (ii) provision of centralized dishwashing and
ancillary services business. The following table sets out the revenue generated from each of our business sectors during the periods
ended September 30, 2021 and 2022:
| | |
Nine
months ended September 30, | |
| | |
2021 (Unaudited) | | |
2022 (Unaudited) | |
| | |
SGD’000 | | |
% | | |
SGD’000 | | |
% | |
| | |
| | |
| | |
| | |
| |
| Sale of cleaning systems
and other equipment business | |
| | | |
| | | |
| | | |
| | |
| Sale of precision
cleaning systems | |
| 4,543 | | |
| 40.0 | | |
| 3,047 | | |
| 23.3 | |
| Sale of other cleaning
systems and other equipment | |
| 1,868 | | |
| 16.5 | | |
| 3,761 | | |
| 28.7 | |
| Repair
and servicing of cleaning systems and sale of related parts | |
| 828 | | |
| 7.3 | | |
| 909 | | |
| 6.9 | |
| Sub-total | |
| 7,239 | | |
| 63.8 | | |
| 7,717 | | |
| 58.9 | |
| | |
| | | |
| | | |
| | | |
| | |
| Provision of centralized
dishwashing and ancillary services business | |
| | | |
| | | |
| | | |
| | |
| Provision of centralized
dishwashing and general cleaning services | |
| 3,991 | | |
| 35.2 | | |
| 5,236 | | |
| 40.0 | |
| Leasing
of dishwashing equipment | |
| 117 | | |
| 1.0 | | |
| 141 | | |
| 1.1 | |
| Sub-total | |
| 4,108 | | |
| 36.2 | | |
| 5,377 | | |
| 41.1 | |
| | |
| | | |
| | | |
| | | |
| | |
| Total | |
| 11,347 | | |
| 100.0 | | |
| 13,094 | | |
| 100.0 | |
For
the nine months period ended September 30, 2022, our total revenue increased by approximately S$1.7 million or 15.4% to approximately
S$13.1 million from approximately S$11.3 million in the nine months period ended September 30, 2021. The increase was mainly attributable
to the increase in revenue generated from our sale of other cleaning systems and equipment business of approximately S$1.9 million and
provision of centralized dishwashing and ancillary services business of approximately S$1.3 million, while partially offset by the decrease
in revenue generated from sale of precision cleaning systems of S$1.5 million. The increases were mainly attributable to the post COVID-19
recovery of business.
| | |
Three
months ended September 30, | |
| | |
2021 (Unaudited) | | |
2022 (Unaudited) | |
| | |
SGD’000 | | |
% | | |
SGD’000 | | |
% | |
| | |
| | |
| | |
| | |
| |
| Sale of cleaning systems
and other equipment business | |
| | | |
| | | |
| | | |
| | |
| Sale of precision
cleaning systems | |
| 250 | | |
| 10.3 | | |
| 2,817 | | |
| 47.8 | |
| Sale of other cleaning
systems and other equipment | |
| 498 | | |
| 20.4 | | |
| 882 | | |
| 15.0 | |
| Repair
and servicing of cleaning systems and sale of related parts | |
| 220 | | |
| 9.0 | | |
| 406 | | |
| 6.8 | |
| Sub-total | |
| 968 | | |
| 39.7 | | |
| 4,105 | | |
| 69.6 | |
| | |
| | | |
| | | |
| | | |
| | |
| Provision of centralized
dishwashing and ancillary services business | |
| | | |
| | | |
| | | |
| | |
| Provision of centralized
dishwashing and general cleaning services | |
| 1,432 | | |
| 58.7 | | |
| 1,745 | | |
| 29.6 | |
| Leasing
of dishwashing equipment | |
| 39 | | |
| 1.6 | | |
| 47 | | |
| 0.8 | |
| Sub-total | |
| 1,471 | | |
| 60.3 | | |
| 1,792 | | |
| 30.4 | |
| | |
| | | |
| | | |
| | | |
| | |
| Total | |
| 2,439 | | |
| 100.0 | | |
| 5,897 | | |
| 100.0 | |
For
the three months period ended September 30, 2022, our total revenue increased by approximately S$3.5 million or 141.8% to approximately
S$5.9 million from approximately S$2.4 million in the three months period ended September 30, 2021. The increase was mainly attributable
to the increase in revenue generated from our sale of cleaning systems and other equipment business of approximately S$3.1 million and
provision of centralized dishwashing and ancillary services business of approximately S$0.3 million. The increases were mainly attributable
to the post COVID-19 recovery of business.
The
following table sets forth the movement in orders backlog for our sale of cleaning systems and other equipment in terms of approximate
contract value of orders during the year ended December 31,2021 and the nine months period ended September 30, 2022.
| | |
Year
ended December 31, 2021 | | |
Period
ended September 30, 2022 | |
| | |
(SGD’000) | | |
(SGD’000) | |
| | |
| | |
| |
| Outstanding contract value as of
beginning of year/period(1) | |
| 5,820 | | |
| 19,997 | |
| New contract value for the year | |
| 22,208 | | |
| 18,457 | |
| Revenue recognized for the year/period | |
| 8,031 | | |
| 6,808 | |
| Outstanding contract value as of year/period end(2) | |
| 19,997 | | |
| 31,646 | |
| (1)
Outstanding contract value as of beginning of year/period represents the contract value of orders which were not completed
as of the beginning of the relevant year or period. |
| (2)
Outstanding contract value as of year/period-end represents the contract value of ongoing orders as of the end of the relevant
year or period that will be carried forward to the next year or period. |
Cost
of revenues
During
the nine months periods ended September 30, 2021 and 2022, our Group’s cost of revenues was mainly comprised of raw materials costs,
labor costs, sub-contracting costs and production overhead. For the nine months periods ended September 30, 2021 and 2022, our cost of
revenues amounted to approximately S$9.0 million and S$9.9 million, respectively. For the three months periods ended September 30, 2021
and 2022, our cost of revenues amounted to approximately S$2.1 million and S$4.4 million, respectively.
Gross
profit and gross profit margin
The
table below sets forth our Group’s gross profit and gross profit margin by business sector during the nine months periods ended
September 30, 2021 and 2022:
| | |
Nine
months ended September 30, | |
| | |
2021 (Unaudited) | | |
2022 (Unaudited) | |
| | |
Gross
profit | | |
Gross
Profit Margin | | |
Gross
profit | | |
Gross
Profit Margin | |
| | |
SGD’000 | | |
% | | |
SGD’000 | | |
% | |
| Sale of precision cleaning
systems and other equipment business | |
| | | |
| | | |
| | | |
| | |
| Sale of precision cleaning systems | |
| 1,254 | | |
| 27.6 | | |
| 1,031 | | |
| 33.8 | |
| Sale of other cleaning systems and other equipment | |
| 577 | | |
| 30.9 | | |
| 1,145 | | |
| 30.4 | |
| Repair and servicing
of cleaning systems and sale of related parts | |
| 133 | | |
| 16.0 | | |
| 147 | | |
| 16.2 | |
| Sub-total | |
| 1,964 | | |
| 27.1 | | |
| 2,323 | | |
| 30.1 | |
| | |
Nine
months ended September 30, | |
| | |
2021 (Unaudited) | | |
2022 (Unaudited) | |
| | |
Gross
profit | | |
Gross
Profit Margin | | |
Gross
profit | | |
Gross
Profit Margin | |
| | |
SGD’000 | | |
% | | |
SGD’000 | | |
% | |
| Provision of centralized dishwashing
and ancillary services business | |
| 412 | | |
| 10.0 | | |
| 851 | | |
| 15.8 | |
| | |
| | | |
| | | |
| | | |
| | |
| Total/overall | |
| 2,376 | | |
| 20.9 | | |
| 3,174 | | |
| 24.2 | |
The
table below sets forth our Group’s gross profit and gross profit margin by business sector during the three months periods ended
September 30, 2021 and 2022:
| | |
Three
months ended September 30, | |
| | |
2021 (Unaudited) | | |
2022 (Unaudited) | |
| | |
Gross
profit | | |
Gross
Profit Margin | | |
Gross
profit | | |
Gross
Profit Margin | |
| | |
SGD’000 | | |
% | | |
SGD’000 | | |
% | |
| Sale of precision cleaning
systems and other equipment business | |
| | | |
| | | |
| | | |
| | |
| Sale of precision cleaning systems | |
| 53 | | |
| 21.2 | | |
| 941 | | |
| 33.4 | |
| Sale of other cleaning systems and other equipment | |
| 154 | | |
| 30.9 | | |
| 235 | | |
| 26.6 | |
| Repair and servicing
of cleaning systems and sale of related parts | |
| 30 | | |
| 13.6 | | |
| 56 | | |
| 13.8 | |
| | |
| | | |
| | | |
| | | |
| | |
| Sub-total/overall | |
| 237 | | |
| 24.5 | | |
| 1,232 | | |
| 30.0 | |
| | |
Three
months ended September 30, | |
| | |
2021 (Unaudited) | | |
2022 (Unaudited) | |
| | |
Gross
profit | | |
Gross
Profit Margin | | |
Gross
profit | | |
Gross
Profit Margin | |
| | |
SGD’000 | | |
% | | |
SGD’000 | | |
% | |
| Provision of centralized dishwashing
and ancillary services business | |
| 150 | | |
| 10.2 | | |
| 301 | | |
| 16.8 | |
| | |
| | | |
| | | |
| | | |
| | |
| Total/overall | |
| 387 | | |
| 15.9 | | |
| 1,533 | | |
| 26.0 | |
Our
total gross profit amounted to approximately S$2.4 million and S$3.2 million for the nine months periods ended September 30, 2021 and
2022, respectively. Our overall gross profit margins were approximately 20.9% and 24.2% for the nine months periods ended September 30,
2021 and 2022, respectively.
Our
total gross profit for the nine months period ended September 30, 2022 increased by approximately S$0.8 million or 33.6%, which was mainly
due to the increase in our revenue from the sales of other cleaning systems and provision of centralized dishwashing and ancillary services
business.
Our
total gross profit for the three months period ended September 30, 2022 increased by approximately S$1.1 million or 296.61%, which was
mainly due to the increase in our revenue from the sales of precision and other cleaning systems which generated higher margin for our
Group.
Selling
and marketing expenses
Our
selling and marketing expenses mainly included promotion and marketing expenses and transportation expenses. The following table sets
forth the breakdown of our selling and marketing expenses for the three months and nine months periods ended September 30, 2021 and 2022.
| | |
Three
months ended
September 30, | | |
Nine
months ended
September 30, | |
| | |
2021 (Unaudited) | | |
2022 (Unaudited) | | |
2021 (Unaudited) | | |
2022 (Unaudited) | |
| | |
SGD’000 | | |
SGD’000 | | |
SGD’000 | | |
SGD’000 | |
| Promotion
and marketing expenses | |
| 7 | | |
| 2 | | |
| 8 | | |
| 10 | |
| Transportation
expenses | |
| 1 | | |
| 5 | | |
| 5 | | |
| 12 | |
| Total | |
| 8 | | |
| 7 | | |
| 13 | | |
| 22 | |
Our
selling and marketing expenses amounted to approximately S$8,000, S$7,000, S$13,000 and S$22,000 for the three months and nine months
periods ended September 30, 2021 and 2022, respectively.
The
increase in promotion and marketing expenses for the nine months period ended September 30, 2022 was primarily attributable to revamp
and improvement of corporate website and online marketing activities as well as transportation expenses incurred for overseas business
trips to customers’ site.
The
slight decrease in promotion and marketing expenses for the three months period ended September 30, 2022 was due to the completion of
revamp and improvement of corporate website in last quarter.
Administrative
expenses
Our
administrative expenses primarily consist of (i) staff cost; (ii) depreciation; (iii) office supplies and upkeep expenses; (iv) travelling
and entertainment; (v) legal and professional fees; (vi) property and related expenses; (vii) Directors and officers liability insurance;
and (viii) miscellaneous expenses. The following table sets forth the breakdown of our administrative expenses for the periods ended
September 30, 2021 and 2022:
| | |
Three
months ended
September 30, | | |
Nine
months ended
September 30, | |
| | |
2021
(Unaudited) | | |
2022
(Unaudited) | | |
2021
(Unaudited) | | |
2022
(Unaudited) | |
| | |
SGD’000 | | |
SGD’000 | | |
SGD’000 | | |
SGD’000 | |
| Staff
costs | |
| 346 | | |
| 415 | | |
| 1,049 | | |
| 1,386 | |
| Depreciation | |
| 106 | | |
| 68 | | |
| 208 | | |
| 203 | |
| Office
supplies and upkeep expenses | |
| 46 | | |
| 55 | | |
| 124 | | |
| 148 | |
| Travelling
and entertainment | |
| 19 | | |
| 68 | | |
| 86 | | |
| 132 | |
| Legal
and professional fees | |
| - | | |
| - | | |
| 39 | | |
| 98 | |
| Property
and related expenses | |
| 46 | | |
| 46 | | |
| 130 | | |
| 130 | |
| Directors
and officers liability insurance | |
| - | | |
| 51 | | |
| - | | |
| 85 | |
| Miscellaneous
expenses | |
| 32 | | |
| 43 | | |
| 87 | | |
| 129 | |
| Total | |
| 595 | | |
| 746 | | |
| 1,723 | | |
| 2,311 | |
Our
administrative expenses amounted to approximately S$1.7 million and S$2.3 million for the nine months periods ended September 30, 2021
and 2022, respectively, representing approximately 15.2%, and 17.6% of our total revenue for the corresponding periods.
Staff
costs mainly represented the salaries, employee benefits and retirement benefit costs to our employees and Directors’ remuneration.
The staff costs of our Group increased by approximately S$0.3 million mainly due to the directors’ fees paid following the appointment
of directors from January 1, 2022 and recruitment of operation manager and engineers.
Depreciation
expense is charged on our property, plant and equipment which included (i) leasehold buildings; (ii) right-of-use assets; (iii) computer
equipment; and (iv) furniture and fittings. The increase in depreciation is mainly due to amortization of newly acquired computer equipment,
hardware and system.
Office
supplies and upkeep expenses mainly represented office supplies, cleaning cost, upkeep of motor vehicles and the relevant utilities expenses
such as electricity and water. The increase is due to replacement cost for upkeep of motor vehicles and increase in electricity charges
due to increase in rate.
Travelling
and entertainment mainly represented expenditure for allowance and expenses for travelling to customers’ site for project meeting
and machine commissioning and costs incurred for staff welfare.
Legal
and professional fees mainly represented auditor’s remuneration and other professional fees for training and development and staff
recruitment services. The increase is mainly due to the increase in audit fee post-listing.
Property
and related expenses mainly represented property tax and related expenses in Singapore.
Directors
and officers liability insurance relates to liability insurance payable to the directors and officers of a company, or to the organization
itself, as indemnification (reimbursement) for losses or advancement of defense costs in the event an insured suffers such a loss as
a result of a legal action brought for alleged wrongful acts in their capacity as directors and officers.
Miscellaneous
expenses were mainly comprised of commercial general insurance expenses for operations, donation and other miscellaneous expenses.
Other
income
Other
income of our Group amounted to approximately S$0.5 million and S$0.5 million for the nine months periods ended September 30, 2021 and
2022, respectively. The other income was mainly derived from wholesale sales of STICO anti-slip shoes and Government grants. The following
table sets forth the breakdown of our other income for periods ended September 30, 2021 and 2022:
| | |
Three
months ended
September 30, | | |
Nine
months ended
September 30, | |
| | |
2021
(Unaudited) | | |
2022
(Unaudited) | | |
2021
(Unaudited) | | |
2022
(Unaudited) | |
| | |
SGD’000 | | |
SGD’000 | | |
SGD’000 | | |
SGD’000 | |
| Wholesale
sales of STICO anti-slip shoes | |
| 25 | | |
| 12 | | |
| 94 | | |
| 105 | |
| Provision
of credit losses reversed | |
| 47 | | |
| - | | |
| 47 | | |
| 21 | |
| Government
grants | |
| 139 | | |
| 64 | | |
| 330 | | |
| 295 | |
| Other(1) | |
| 10 | | |
| 39 | | |
| 76 | | |
| 73 | |
| Total | |
| 221 | | |
| 115 | | |
| 547 | | |
| 494 | |
| (1)
Other mainly consists of sale of scrap materials and other miscellaneous income. |
Wholesale
of STICO anti-slip shoes represented the income generated from wholesale of STICO anti-slip shoes mainly to food and beverage (F&B)
establishments in Singapore. The wholesale sales of STICO anti-slip shoes increased by approximately 11.7% due to resumption of demand
from F&B establishments.
During
the nine months period ended September 30, 2022, we reversed the provision of credit losses of approximately S$21,000 which we had previously
impaired as of December 31, 2021 pursuant to the recovery of accounts receivable.
Government
grants mainly represented Jobs Support Scheme, Jobs Growth Incentive and capability development grants received from the Singapore Government.
Interest
expense
Our
interest expense arose from lease liabilities and secured bank loans. For the nine months periods ended September 30, 2021 and 2022,
our interest expense increased by approximately S$0.06 million mainly due to increase in interest rate.
Other
expenses
Other
expenses of our Group mainly consist of cost of STICO anti-slip shoes, bank charges and extraordinary expenses. The following table sets
forth the breakdown of our other expenses for the periods ended September 30, 2021 and 2022:
| | |
Three
months ended
September 30, | | |
Nine
months ended
September 30, | |
| | |
2021
(Unaudited) | | |
2022
(Unaudited) | | |
2021
(Unaudited) | | |
2022
(Unaudited) | |
| | |
SGD’000 | | |
SGD’000 | | |
SGD’000 | | |
SGD’000 | |
| Cost
of STICO anti-slip shoes | |
| 14 | | |
| 6 | | |
| 51 | | |
| 66 | |
| Bank
charges | |
| 5 | | |
| 14 | | |
| 17 | | |
| 29 | |
| Extraordinary
expenses | |
| 69 | | |
| 57 | | |
| 328 | | |
| 145 | |
| Others(1) | |
| 52 | | |
| 14 | | |
| 58 | | |
| 30 | |
| Total | |
| 140 | | |
| 91 | | |
| 454 | | |
| 270 | |
| (1) |
Others
mainly consist of professional training expenses, withholding tax expenses and other miscellaneous expenses. |
Other
expenses of our Group decreased to approximately S$0.3 million for the nine months period ended September 30, 2022 mainly due to a decrease
in extraordinary expenses incurred related to professional fees in relation to our initial public offering.
Income
tax
During
the nine months periods ended September 30, 2021 and 2022, our income tax expense was comprised of our current tax expense and deferred
tax for the year.
Pursuant
to the rules and regulations of the Cayman Islands and the BVI, our Company and its subsidiary, JE Cleantech International Limited, both
are not subject to any income tax in the Cayman Islands and the BVI. Our Group’s operations are based in Singapore and we are subject
to income tax on an entity basis on the estimated chargeable income arising in Singapore at the statutory rate of 17%.
Our
income tax increased to S$141,000 for the nine months period ended September 30, 2022. Such increase was generally in line with the increase
in our profit.
Our
Group had no tax obligation arising from other jurisdictions during the year ended December 31, 2021 and nine months period ended September
30, 2022. During the year ended December 31, 2021 and nine months period ended September 30, 2022, our Group had no material dispute
or unresolved tax issues with the relevant tax authorities.
Net
Income for the Year
As
a result of the foregoing, our net income amounted to approximately S$(0.2) million for the three months period ended September 30, 2021,
compared to S$0.6 million for the three months period ended September 30, 2022, and S$0.5 million for the nine months ended September
30, 2021, compared to S$0.7 million for the nine months period ended September 30, 2022.
Liquidity
and Capital Resources
Our
liquidity and working capital requirements primarily related to our operating expenses. Historically, we have met our working capital
and other liquidity requirements primarily through a combination of cash generated from our operations and loans from banking facilities.
Going forward, we expect to fund our working capital and other liquidity requirements from various sources, including but not limited
to cash generated from our operations, loans from banking facilities, the net proceeds from our initial public offering and other equity
and debt financings as and when appropriate.
We
believe that our Group has sufficient working capital for our requirements for at least the next 12 months from the date of this Form,
in the absence of unforeseen circumstances, taking into account the financial resources presently available to us, including cash and
cash equivalents on hand, cash flows from our operations and the net proceeds from our initial public offering.
Other
Development
Our
Group experienced delay in the timeline of development and testing of autonomous robot floor scrubbers due to the impact of COVID19 which
resulted in delay of supply chain of parts and components and shortage of manpower. Our Group expects to commence commercial sale of
the autonomous robot floor scrubbers for industrial properties, commercial properties and food and beverage establishments by the 2nd
quarter of 2023.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
| |
JE
CLEANTECH HOLDINGS LIMITED |
| |
|
| Dated
December 1, 2022 |
/s/
HONG Bee Yin |
| |
HONG
Bee Yin, Chief Executive Officer and Director |
| |
|
| Dated
December 1, 2022 |
/s/
LONG Jia Kwang |
| |
LONG
Jia Kwang, Chief Financial Officer |
JE Cleantech (NASDAQ:JCSE)
過去 株価チャート
から 5 2024 まで 6 2024
JE Cleantech (NASDAQ:JCSE)
過去 株価チャート
から 6 2023 まで 6 2024
