SOILBUILD CONSTRUCTION GROUP LTD. ANNUAL

Operating and Financial Review

OPERATING AND FINANCIAL REVIEW Income Tax Expenses Current Liabilities The Group reported income tax expense of approximately The Group’s current liabilities decreased from S$0.5 million in FY2023 as compared to income tax S$155.0 million as at 31 December 2022 to S$128.6 credit of approximately S$1.7 million in FY2022. million as at 31 December 2023. The decrease was mainly attributable to decrease in borrowings of Net Profit S$18.2 million mainly due to repayment of bank For FY2023, the Group reported a net profit of borrowings, decrease in trade and other payables of approximately S$7.3 million compared to net loss of S$8.4 million due to timing differences in payment approximately S$31.7 million reported in FY2022. to suppliers and subcontractors and decrease in Correspondingly, the Group’s net profit margin was provision for other liabilities of S$1.0 million, which 3.0% in FY2023 compared net loss margin of 12.8% is partly offset by increase in current income tax in FY2022. liabilities of S$1.2 million. Non-Current Liabilities REVIEW OF THE GROUP’S BALANCE SHEET The Group’s non-current liabilities increased from S$74.1 million as at 31 December 2022 to S$78.8 Current Assets million as at 31 December 2023. It was mainly due to The Group’s current assets increased from S$105.9 increase in non-current bank borrowings of S$10.3 million as at 31 December 2022 to S$116.5 million million, which is partly offset by decrease in trade as at 31 December 2023. The increase was mainly and other payables of S$5.4 million and decrease in attributable to increase in inventories of S$6.1 deferred income tax liabilities of S$0.2 million. million as a result of ramp up of production of precast and prefabrication materials for customers, increase Total Equity in trade and other receivables of S$4.3 million due The Group’s total equity increased by S$27.8 million to timing differences in collection from customers, from S$17.4 million as at 31 December 2022 to increase in cash and cash equivalents of S$3.1 million, S$45.2 million as at 31 December 2023. The increase which is partially offset by decrease in other current was attributable to the 2 rounds of preferential offering assets of S$2.9 million. performed in 2023 and net profit after tax and other comprehensive loss of the Group for FY2023. Non-Current Assets The Group’s non-current assets decreased from S$140.5 milli