Company: MAGH
Filing Date: 2025-09-15
Form Type: 20-F
Source: 0001493152-25-013424
Chunk: 61

Company: Magnitude International Ltd
Filing Date: 2025-09-15
Form: 20-F
Item: Item 4
Chunk 61
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 turn will improve our profitability.

While
implementing the above strategies and business plans, we will adhere to prudent financial management to ensure sustainable growth and
capital sufficiency.

Real
Property

We
currently operate in our self-owned property at 27 Woodlands Industrial Park E1, #03-15 Hiangkie Industrial Building, Singapore 757718
with gross floor area of approximately 3,983 square feet. This property is used as our head office.

As
we employ a lot of overseas workers, there are 2 one-year dormitory leases at fixed monthly rental as at April 30, 2025 for eight units
with 48 beds at 11A Jalan Tukang, Singapore 619267 as the dormitory for our overseas workers.

  38  

Business
Development

Our
directors believe that our ability to retain customers is attributed to our technical expertise, track record, professional reputation
and good working relationship with our customers. As such, instead of diverting our resources on advertising and promotion, we focus
on establishing rapport with our customers by maintaining the quality of our services, striving to upkeep and/or upgrade our qualifications
and licenses required to carry out our electrical installation services as well as maintaining our professional reputation in the industry.
Our management and contract department are generally responsible for fostering, building and maintaining our relationships with customers,
and keeping abreast of market developments and potential business opportunities.

Contracts
and Pricing Model

The
vast majority of our revenue recognized during the fiscal years ended April 30, 2023, 2024 and 2025 were generated from contracts obtained
through invited tender from repeat customers. During the fiscal years ended April 30, 2023, 2024 and 2025, our tender success rate was
approximately 60.0%, 70.0% and 70%, respectively. Depending on the relevant contract terms, (i) we generally receive progress payments
from customers within 35 days after we present our invoices (which are issued after our receipt of the relevant payment certificates)
to them; (ii) our customers typically have the right to hold retention money of 5.0% of the notional contract sum (the first half of
which is usually released upon the issue of the certificate of practical completion and the remaining portion is usually released after
the expiry of the defect liability period, typically a period of 12 to 18 months after the issue of the certificate of practical completion);
and (iii) approximately one-third