On behalf of the Board of Directors (“Board”), I present to you our annual report for the financial year ended 31 December 2017 (“FY2017”).
I am pleased to report that the Group has maintained headway to fortify our fundamentals and strengthen our value chain in FY2017. The Group completed a few disposal transactions in relation to property investments in FY2017, which significantly improved our financial position and liquidity. These are clearly reflected in our balance sheet and cash flow statement in this Report. Moving forward, the Group will continue its pursuit of greater excellence, with the aim of delivering quality and valued solutions to restore the environment.
The Group has significantly improved its financial position from net current liabilities of $57.4 million in FY2016 to net current assets of $12.7 million. Our focus on driving growth has resulted in an improvement in the Group's cash position from a cash deficit of $0.1 million in FY2016 to a cash suplus of $19.9 million in FY2017.
Despite the decrease in revenue from $103.8 million in FY2016 to $61.0 million in FY2017, the Group achieved a higher gross profit margin in FY2017. The Group will continue to monitor its profitability by leveraging on new technologies and cost control measures to improve productivity.
The Group's bottom line was affected by fair value losses from the industrial strata units held at 63 Hillview Avenue and loss on disposal of a subsidiary, F2S1 Investment Pte Ltd. These losses are negated by gain from the disposal of the Company's investment in Carros Project Management Pte Ltd (“CPM”). In order to distribute the gain on the disposal of the Company's investment in CPM, the Company has proposed a dividend of $0.003 per share to be distributed to shareholders, which is subject to shareholders' approval in the forthcoming AGM.
The Group will continue to explore opportunities in property investment, while at the same time seek avenues for growth in the recycling business. As consumer needs continue to evolve, there is a greater need for measures to ensure that electrical and electronic waste (“e-waste”) are disposed of in an environmentally-friendly way.
According to a recent press article, Singapore will make it mandatory for electronic manufacturers and importers to adopt an e-waste management system by 2021. As a leading industry player in e-waste solutions, Enviro-Hub will be able to capitalise on this initiative to strengthen its business and support the government's drive to create a cleaner future.
The construction sector will continue to face challenges, but with the support of our management team, we are confident in working as one to stay resilient and overcome the challenges. We believe that the construction industry will gain momentum in the next two years.
Together with the Board, I would like to express my appreciation to all our shareholders for your unwavering support. To our valued Board of Directors, thank you for your consistent leadership. At the same time, I would like to convey my sincere gratitude to our management and staff for your contribution and hard work. Let us forge ahead in unison and work towards fulfilling our Mission and achieving our Vision.
Raymond Ng Ah Hua