Company: SPPL
Filing Date: 2025-04-08
Form Type: 20-F
Source: 0001641172-25-003217
Chunk: 64

Company: SIMPPLE LTD.
Filing Date: 2025-04-08
Form: 20-F
Item: Item 5
Chunk 64
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 Contents  

5A.
Operating results

Factors
affecting our performance

Inflationary
pressure on costs

Inflation,
market uncertainties, currency fluctuations and interest rate factors have impacted SIMPPLE’s operations business-wide. The Company
faces increased cost of sales due to rising prices of labor and materials, mandated system and compliance costs, data security and broad
ranging professional fees. Additionally, robotics and component hardware, distribution and mobilization, training and development costs
has increased as we continue to diversify and expand the business globally. Various cost and investment factors have therefore led to
weaker margins amidst growing competition and upfront costs to support large tender opportunities, often requiring long lead times to
be awarded and mobilized. The essential and ongoing investment in research and development of software-based initiatives, to meet future
demands and client expectations has also increased substantially. As we expand beyond Singapore, local variations in inflation and currency
rates across different countries may impact, staff costs, and overall profitability as we continue to invest and expand into international
markets. Uncertain market conditions and interest rate variations will therefore continue to impact borrowing costs and therefore may
additionally impact future operating results.

Growth
arising from our strategic partnerships

We have successfully and will continue to meticulously pursue partnership opportunities that we believe are strategic, complementing and adding value to our current operations, state-of-the-art technology, growth and cost management objectives. The contributions, experience, and connections that our partners can provide will directly impact the results of our operations and benefit our long-term sustainability.

Industry
adoption of solutions

Although our business results are highly dependent on the demand and adoption of our end-to-end facilities management solutions by facility owners and facility management companies in Singapore and beyond,
potential demand is expected to remain high, as industries increasingly adopt alternative service and reporting technologies world-wide.

An industry impacted by an ageing workforce and declining labor resources available to service the facilities sector, which is furthermore impacted by rising labor costs due to the Singapore’s progressive (minimum) wage policy, and ever-increasing compliance and related reporting demands, has seen a growing commitment to adopting technology solutions. Singapore, SIMPPLE’s home base and its various international business locations are maintaining positive momentum as industry seeks to implement innovative and sustainable practices that can deliver proven enterprise-wide efficiencies and related cost saving initiatives. Government support through grants has also created an affordable pathway to adopting technology-based solutions at a grassroots level. Even though, the Singapore market remains limited due to its geography and market size, it has very