Company: SPPL
Filing Date: 2025-04-08
Form Type: 20-F
Source: 0001641172-25-003217
Chunk: 65

Company: SIMPPLE LTD.
Filing Date: 2025-04-08
Form: 20-F
Item: Item 5
Chunk 65
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 much embraced companies like SIMPPLE who are locally based and have benefitted from Singapore’s global positioning as a strategic technology hub, while highly regarded as a business and development base, that continues to foster and invest in its innovative organizations.

Competition
from industry players affecting our pricing and terms

Although SIMPPLE has established itself as a proven market leader with significant market share in Singapore, it has since looked beyond Singapore to expand internationally. This expansion and diversification strategy has been initiated to broaden opportunities outside of Singapore’s highly competitive and geographically limited marketplace. As a provider of end-to-end technology solutions, SIMPPLE has uniquely positioned itself to service both small and enterprise-wide businesses with inhouse developed and supported expertise. This capability is underpinned by established supply chain partnerships, that offer competitive terms, generally advantages to our business and growing client base. However, as robotics, innovative technologies and software solutions grow in demand, so do relevant options and the ever-increasing need to offer unique market leading alternatives. As such we have diversified our robotics offering and expanded software solutions to remain ahead of our competition.

Fluctuations
in the cost of sales

Increased costs including but not limited to labor, robotics, parts, freight and data storage etc. have all contributed to a variable cost base additionally impacted by currency fluctuations and increased insurance costs. Competitive tendering of large contracts requires significant upfront investment and capital outlay requiring longer term amortization before maximizing contribution margin. Additionally, SIMPPLE’s international growth strategy, has required an upfront investment to build brand awareness and market credentials. This requires the purchase of extensive demonstration stock that initially impacts cost of goods sold until fully amortized.

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  Table of Contents  

Results
of Operations

Comparison
of Years Ended December 31, 2024, and 2023

                                                                            For the year ended December 31,                                                                                           
                                                                            2024                                                                                 2024 to 2023                         
                                                                            S$                                                                                   % change                             
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Revenue                                                                                                         3,773,324       4,686,925       6,510,169                           -19        -28  
  Cost of revenues                                                                                               (1,511,927      (2,244,486      (2,910,873                           -33        -23  
  Gross profit                                                                                                    2,261,397       2,442,439