Company: MAGH
Filing Date: 2025-06-25
Form Type: F-1/A
Source: 0001641172-25-016431
Chunk: 111

Company: Magnitude International Ltd
Filing Date: 2025-06-25
Form: F-1/A
Chunk 111
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 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.

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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, we have also signed a one-year lease at fixed monthly rental effective from April 20, 2024 for three units (each unit can accommodate up to 12 workers) at Cochrane Lodge 1, 51 Admiralty Road west, Singapore 757443 as the dormitory for our overseas workers.

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 and 2024 were generated from contracts obtained through invited tender from repeat customers. During the fiscal years ended April 30, 2023 and 2024, our tender success rate was approximately 60.0% and 70.0%, 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 of our projects during the fiscal years ended April 30, 2023 and 2024 required us to provide performance