Our principal activity is the provision of integratedbuilding services, the scope of which includes maintenance and installation ofvarious building systems for both public and private sector projects inSingapore, and also includes minor repairs and improvement works. Maintenanceservices are repairs and servicing (including preventive and scheduledmaintenance as well as breakdown maintenance) to ensure proper functioning ofthe existing building systems, including but not limited to (i) electricalsystems, such as lightning protection and warning systems, light systems, powersupply and cabling systems, and fire protection and alarm systems; (ii)mechanical systems, such as air-conditioning systems, mechanical ventilationsystems, plumbing and sanitary systems, and automatic gates and doors systems;(iii) domestic systems, such as central antenna television systems; and (iv)specialist systems, such as lift systems, security systems and communicationsystems. Installation services are applicable whereby significant changes needto be made to the existing systems, or for new buildings. Minor repairsservices refer to handyman services for wear and tear on fixtures and fitting.Improvement works refer to services performed complementary to installationsand/or replacements of the building systems, as such installations andreplacements may affect the surrounding fixtures and fittings.

A typical integrated building services contract has aspecified contract period of one to four years, during which our Group may berequired to perform a range of different services in respect of differentbuilding systems at a specified building or at various premises. In somecontracts, the contract value and the scope of work are fixed, while in othercontracts, there is no fixed or committed contract value and the actual amountand nature of works required to be performed by our Group are subject to thecustomer’s work orders from time to time during the contract period, which arecharged according to a pre-agreed schedule of rates. We are generally able toderive recurrent revenue from an integrated building services contract duringthe contract period as preventive and scheduled maintenance services arenormally required on a regular basis.