(n) Inventories Inventories decreased by S$1.9 million or 5.4% from S$33.6 million as at 31 December 2023 to S$31.7 million as at 31 December 2023. The decrease in inventory was mainly due to higher sales in FY 2024 and prudent inventory management. Inventory turnover days improved by 23 days from 170 days for FY 2023 to 147 days for FY 2024. (o) Other current assets Other current assets increased by S$0.9 million or 50.0% to S$2.6 million as at 31 December 2024 primarily due to higher advance payments to suppliers (S$0.4 million) and higher prepayment of expenses (S$0.5 million). (p) Financial assets and financial liabilities at fair value through profit or loss Financial assets at fair value through profit or loss amounted to S$45,000 as at 31 December 2024. Financial liabilities at fair value through profit or loss decreased by S$42,000 to S$9,000 as at 31 December 2024. (q) Trade and other payables Total trade payables decreased by S$0.8 million or 10.7% from S$7.1 million as at 31 December 2023 to S$6.3 million as at 31 December 2024. Turnover days decreased to 27 days in FY 2024 as compared to 35 days in FY 2023. Other payables in aggregate consisting of accrued operating expenses, advance payments from customer and sundry payables increased by S$0.5 million from S$8.1 million as at 31 December 2023 to S$8.6 million as at 31 December 2024. The increase was mainly due to higher accrued operating expenses of S$0.3 million and higher sundry creditors and advance payment received from customers of S$0.1 million each. (r) Financial liabilities - lease liabilities The carrying value of lease liabilities increased from S$2.9 million as at 31 December 2023 to S$3.1 million as at 31 December 2024. Additional lease liabilities recognized of S$0.6 million and accretion of interest of S$0.2 million were offset by repayment of lease liabilities of S$0.5 million in FY 2024. (s) Borrowings Total borrowings decreased by S$3.3 million or 11.4% from S$28.5 million as at 31 December 2023 to S$25.2 million as at 31 December 2024. This decrease was mainly due to repayment of trade borrowings. In line with lower total borrowings, our gearing ratio and net gearing ratio decreased from 0.57 times and 0.30 times as at 31 December 2023 to 0.43 times and 0.16 times as at 31 December 2024 respectively. (t) Net asset per share attributable to equity holders of the Company Net asset value per share increased from 37.48 cents as at 31 December 2023 to 43.92 cents as at 31 December 2024 primarily due to comprehensive income recorded for equity holders of S$9.4 million offset by dividend payment of S$0.6 million and acquisition of equity shares from non-controlling interests of S$1.1 million in FY 2024. CASHFLOW REVIEW On the back of strong profit, positive cash flow from operating activities of S$11.0 million was generated in FY 2024. Other major cash inflows under investing activities were dividends received from associated company of S$0.5 million and proceeds from the sales of property, plant and equipment of S$0.9 million. Positive cashflow generated was utilised to reduce borrowings of S$3.3 million and to meet other major cash outflows in FY 2024 such as payments for property, plant and equipment of S$2.7 million, purchase of equity shares from non-controlling interests of S$1.2 million, payment of dividends of S$0.9 million and payments of bank interest of S$1.8 million. As such, overall cash and cash equivalents increased by S$2.3 million from S$13.0 million as at 31 December 2023 to S$15.3 million as at 31 December 2024. Operating and Financial Review 37 ANNUAL REPORT 2024
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