Fbs Global Limited's Business Segments

FBS Global Limited is a holding company with primary operations in Singapore through its subsidiary, using Singapore Dollars as its functional currency. The company operates in the construction industry, specializing in interior fitting-out, construction, and building works. Its revenue is derived mainly from new building developments and major additional and alteration (A&A) projects. FBS Global Limited's business is influenced by economic, regulatory, political, and social conditions, property market dynamics, government initiatives, and external factors such as natural disasters and epidemics in Singapore and other countries where it operates. The company’s contracts are typically non-recurring and project-based, with no guarantee of securing new projects after completing existing ones. It relies significantly on major customers, with the top two customers accounting for 24% and 22% of revenue in 2024, and 62% and 22% in 2025, respectively. Contracts are primarily secured through invited tenders, and the company depends on these customers continuing to award tenders on comparable terms. A downturn in the construction industry or a reduction in project pipelines could materially affect the company’s business, financial performance, and prospects.

The registrant's operating business segments focus on research and development efforts aimed at improving operational workflows, developing proprietary software tools, and integrating emerging technologies into service delivery. The company does not have a dedicated R&D department and has not incurred significant R&D expenditures. Innovation is driven through collaboration among technical, engineering, and IT teams. The company does not hold registered patents or material licenses but continues to evaluate opportunities to develop or acquire intellectual property aligned with its strategic objectives. Revenue is recognized over time based on the ratio of actual contract costs incurred to total estimated costs required to fulfill performance obligations. Contract costs include labor, materials, overhead, and subcontractor expenses. Cost estimates are derived from historical data, industry benchmarks, and professional judgment, and are regularly reviewed and updated. Losses on contracts are recognized immediately as operating expenses. For the years ended December 31, 2024 and 2025, total contract losses were negligible.