Singapore registered growth of 4.0% in 20241 as compared to the modest 1.1% in 2023. Our results, likewise, mirrored the overall improvement in economic conditions. In particular, we registered commendable performance in our construction sector, in tandem with the performance of that sector in the overall economic performance of Singapore. The construction sector in Singapore posted growth of 4.8% easing from the 5.2% growth in 2023. Keong Hong Holdings Limited (“Keong Hong” or together with its subsidiaries, the “Group”), turned in revenue of S$172.6 million for the full year ended 30 September 2024 (“FY2024”) as compared to S$199.8 million for the full year ended 30 September 2023 (“FY2023”). This represents a contraction in revenue of 13.6%. The decrease in revenue was mainly due to lower revenue recognition of construction projects which have obtained Temporary Occupation Permit (“TOP”) in FY2023, namely The Antares, Wilshire Residence and Sky Everton, while construction projects such as Tengah Plantation C5 and Solitaire on Cecil have just started. The Group, however, has made great strides in narrowing its gross loss and turning in a net profit. The Group significantly narrowed its gross loss to S$5.4 million or by 79.4% from S$26.4 million in FY2023. The decrease in gross loss was mainly attributable to the near completion of pre-pandemic projects which had higher construction costs for materials and labour, and as well as the effectiveness of our cost management strategies. In line with the lower revenue, cost of sales decreased by 21.3% to S$178.0 million in FY2024 as compared to S$226.2 million in FY2023. Consequent to our lower gross loss, we recorded a negative gross profit margin of 3.1%, as compared to a negative gross profit margin of 13.2% in FY2023. The Group’s registered other income of S$8.7 million in FY2024, as compared to S$16.9 million in FY2023, representing a 48.3% decrease, mainly attributable to the one-off gain on disposal of investment properties of S$7.8 million and higher interest income in FY2023. The Group’s share of results from its joint ventures decreased to S$44,000 in FY2024 as compared to S$0.3 million in FY2023. The Group’s share of net losses of associates increased to S$10.6 million in FY2024 as compared to S$8.4 million in FY2023. The increase was mainly attributed to its investment in an associate that owns and operates an airport, hotel and resort in the Maldives. A higher loss was reported arising from higher operating and finance costs during the current financial year reported on. Following from the above, the Group recorded a net loss after tax of S$3.9 million in FY2024, as compared to a net loss after tax of S$51.2 million in FY2023. Balance sheet-wise, as at 30 September 2024, the Group’s net cash position was S$20.8 million as compared to S$14.6 million in FY2023. Total assets stood at S$194.3 million as against total liabilities of S$143.7 million (FY2023: total assets of S$181 million and total liabilities of S$129.7 million). The Group’s gearing ratio was 0.65 (FY2023: 0.65). The Group recorded loss per share of 1.7 cents and a net asset value per share of 21.5 cents. BUILDING AND CONSTRUCTION – HIGHLIGHTS Despite a strongly-performing construction sector and overall improvement in the economic conditions, the Group still had to operate within a challenging environment of high interest rates, increased business borrowing costs, manpower and productivity challenges. Nonetheless, we succeeded in leveraging 1 Ministry of Trade and Industry, “Singapore’s GDP Grew by 4.3 Per Cent in the Fourth Quarter of 2024 and by 4.0 Per Cent in 2024” 2 January 2025. 12 KEONG HONG HOLDINGS LIMITED FINANCIAL AND OPERATIONS REVIEW
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