# FINANCIAL INFORMATION

We expect to finance our working capital requirements and the planned capital expenditures for the 12 months following the date of this prospectus with the following sources of funding:

(i) net cash inflows to be generated from our operating activities;

(ii) the cash and cash equivalents available, which were S\$4.2 million as at 30 April 2017; and

(iii) net proceeds to be received by our Group from the Share Offer.

Based on the above, our Directors believe that we will have sufficient funds for our present working capital requirements for at least the next 12 months from the date of this prospectus.

For more information on our expected capital expenditure requirements, please refer to the paragraph headed ‘‘Capital expenditures’’ in this section.

# Cash flows of our Group

The following table sets forth the selected cash flow data from our combined statements of cash flows for the Track Record Period:

<table><tr><td rowspan="4"></td><td colspan="2">For the year ended
31 December</td><td colspan="2">For the four months ended
30 April</td></tr><tr><td>2015</td><td>2016</td><td>2016</td><td>2017</td></tr><tr><td>S$’000</td><td> S$’000</td><td> S$’000</td><td> S$’000</td></tr><tr><td></td><td></td><td>(Unaudited)</td><td></td></tr><tr><td>Net cash generated from/(used in)
operating activities</td><td>2,907</td><td>7,891</td><td>1,512</td><td>(2,664)</td></tr><tr><td>Net cash (used in)/generated from
investing activities</td><td>(286)</td><td>(96)</td><td>48</td><td>(32)</td></tr><tr><td>Net cash used in financing activities</td><td>(1,329)</td><td>(5,032)</td><td>(2,942)</td><td>(106)</td></tr><tr><td>Net increase/(decrease) in cash and
cash equivalents</td><td>1,292</td><td>2,763</td><td>(1,382)</td><td>(2,802)</td></tr><tr><td>Cash and cash equivalents at the
beignninhg of te year</td><td>2,960</td><td>4,252</td><td>4,252</td><td>7,015</td></tr><tr><td>Cash and cash equivalents at the end of
the year</td><td>4,252</td><td>7,015</td><td>2,870</td><td>4,213</td></tr></table>

# Net cash generated from operating activities

Our cash inflow from operating activities is principally derived from providing reinforced concrete works. Our working capital requirements typically arise from purchases of materials and settlements of our staff costs and subcontracting fees. During the Track Record Period, our net cash flows from

# FINANCIAL INFORMATION

operating activities represented profit before tax for the year adjusted for income tax paid, income tax refund, finance costs, non-cash items such as depreciation of property, plant and equipment and loss on disposal of property, plant and equipment and changes in working capital.

For the four months ended 30 April 2017, we had net cash used in operating activities of approximately S\$2.7 million, which was a combined effect of operating cash inflows before movements in working capital of approximately S\$1.7 million, net decrease in working capital changes of approximately S\$3.9 million and income tax paid of approximately S\$0.5 million. Net decrease in working capital changes was primarily reflected by an increase in trade and retention sum receivables of approximately S\$5.0 million, which was mainly attributable to the increase in progress billings in Project Orchard Station and Project New State Courts, resulting from the greater amounts of works performed during the four months ended 30 April 2017. The effect was partially offset by (i) a decrease in amounts due from customers for contract works of approximately S\$1.0 million; and (ii) an increase in amounts due to customers for contract works of approximately S\$0.9 million.

For the year ended 31 December 2016, we had net cash generated from operating activities of approximately S\$7.9 million, which was a combined effect of operating cash inflows before movements in working capital of approximately S\$3.6 million, net increase in working capital changes of approximately S\$4.8 million and income tax paid of approximately S\$0.5 million. Net increase in working capital changes was primarily reflected by (i) a decrease in trade and retention sum receivables of approximately S\$6.1 million mainly attributable to the completion of several projects; and (ii) an increase in other payables and accruals of approximately S\$2.7 million, mainly arising from increases in accrued salaries and accrued materials costs. The effect was partially offset by (i) an increase in amounts due from customers for contract works of approximately S\$3.7 million; and (ii) a decrease in amounts due to customers for contract works of approximately S\$0.7 million.

For the year ended 31 December 2015, we had net cash generated from operating activities of approximately S\$2.9 million, which was a combined effect of operating cash inflows before movement in working capital changes of approximately S\$3.6 million and net decrease in working capital changes of approximately S\$0.7 million. Net decrease in working capital changes was primarily reflected by an increase in trade and retention sum receivables of approximately S\$7.0 million, which was mainly attributable to the increases in progress billings in Project Micron and Project Tanjong Pagar Mixed Development, resulting from the greater amounts of works performed during the year ended 31 December 2015. The effect was partially offset by (i) an increase in amounts due to customers for contract works of approximately S\$5.1 million; and (ii) a decrease in amounts due from customers for contract works of approximately S\$2.6 million.

# Net cash used in investing activities

Our cash used in investing activities mainly consists of the purchases of property, plant and equipment.

For the four months ended 30 April 2017, we had net cash used in investing activities of approximately S\$32,000, which was primarily due to the purchases of property, plant and equipment, mainly including office equipment.