Operating and Financial Review (d) Operating expenses Variance Fav/(Unfav) Variance Fav/(Unfav) H2 2024 H1 2024 H2 2024 vs H1 2024 H2 2023 H2 2024 vs H2 2023 S$’000 S$’000 S$’000 % S$’000 S$’000 % Compensation claims 3 5 2 42.2 809 806 99.6 Demolition and decontamination costs - 1,031 1,031 100.0 2,320 2,320 100.0 Depreciation of property, plant and equipment 468 428 (40) (9.5) 431 (37) (8.6) Depreciation of right-of-use assets 151 176 25 14.2 229 78 34.2 Employee compensation 8,552 8,401 (151) (1.8) 7,975 (577) (7.2) Insurance expenses 243 338 95 28.1 185 (58) (31.2) Loss on property, plant and equipment written down - - - - 811 811 100.0 Net foreign exchange loss 526 149 (377) (> 100.0) 142 (384) (> 100.0) Professional fees 586 378 (208) (55.0) 642 56 8.7 Transport charges 507 406 (101) (24.8) 435 (72) (16.4) Travelling expenses 497 392 (105) (26.9) 444 (53) (11.8) Waste disposal costs 3 2,775 2,772 99.9 910 907 99.7 Warehouse storage charges 1,772 1,666 (106) (6.3) 1,394 (378) (27.1) FY 2024 FY 2023 Variance Fav/(Unfav) S$’000 S$’000 S$’000 % Compensation claims 8 809 801 99.0 Demolition and decontamination costs 1,031 2,320 1,289 55.6 Depreciation of property, plant and equipment 896 952 56 5.9 Depreciation of right-of-use assets 327 431 104 24.2 Employee remuneration 16,953 15,490 (1,463) (9.4) Insurance expenses 581 345 (236) (68.2) Loss on property, plant and equipment written down - 811 811 100 Net foreign exchange loss 678 88 (590) (> 100.0) Transport charges 913 764 (149) (19.5) Waste disposal costs 2,778 922 (1,856) (> 100.0) Warehouse storage charges 3,438 2,715 (723) (26.6) H2 2024 vs H1 2024 Operating expenses for H2 2024 decreased by S$2.9 million or 16.3% to S$14.8 million as compared to H1 2024 (S$17.7 million). The decrease was mainly related to the fire incident. Demolition and decontamination costs and waste disposal costs totalling S$3.8 million were incurred in H1 2024 as a result of the fire incident. The decrease was partly offset by higher net foreign exchange losses of S$0.4 million, higher professional fees and employee remuneration of S$0.2 million and higher warehouse storage charges, transport charges and travelling expenses of S$0.1 million each. 33 ANNUAL REPORT 2024
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