DEAR SHAREHOLDERS, I am pleased to present our Annual Report 2024 and to highlight the improvement we have made in the past year. We have narrowed our losses in the construction sector, with the completion of several challenging projects which had been impacted by the COVID-19 pandemic. Overall, we have benefitted from the improved economic conditions, with Singapore’s economy expanding by 4.3% year-on-year in the fourth quarter of 2024, and by 4.0% for the whole of 20241. The construction sector registered a 4.8% growth over the same period last year, fuelled by an increase in public sector projects. Despite the economic expansion, inflationary pressures persisted with rising interest rates, increasing borrowing costs for businesses and dampening consumer demand. The war in the Middle East and the RussianUkraine conflict have had some impact on logistics operations. We have worked within the constraints of a challenging environment by being prudent in our financial decisions, keeping a lean workforce and restructuring our borrowing facilities so as to strengthen our cashflow. As such, we are in a more financially comfortable position to face future challenges and seize growth opportunities where they present themselves. FINANCIAL HIGHLIGHTS We registered a 13.6% decrease in revenue of S$172.6 million for the financial year ended 30 September 2024 (“FY2024”) as compared to revenue of S$199.8 million in the financial year ended 30 September 2023 (“FY2023”). We recorded a negative gross margin of 3.1% on the back of a gross loss of S$5.4 million in FY2024. This is compared against a negative gross margin 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. of 13.2% following on the gross loss of S$26.4 million in the previous financial year. The Group recorded other income of S$8.7 million as compared to S$16.9 million in FY2023, a decrease of 48.3%. The higher other income recorded in FY2023 was mainly attributed to the one-off gain on disposal of investments properties in Japan. The Group, consequently, recorded net loss after tax of S$3.9 million compared to a net loss after tax of S$51.2 million in FY2023. Our cash and cash equivalents were S$20.8 million (FY2023: S$14.6 million). The Group recorded positive net cash from operating activities of S$8.8 million in FY2024. Net asset value per share stood at 21.5 cents as at 30 September 2024. Considering our financial performance and taking into consideration the Group’s overall financial position, working capital requirements and future investment needs, the Board is not proposing any dividends for the financial year FY2024. This is in line with our commitments to ensure financial robustness and the long-term sustainable growth of the Group. BUILDING CONSTRUCTION – STEADY RECOVERY POISED FOR AN UPTURN Our construction sector was the strongest performing of our business divisions. We have narrowed our losses in this sector, with many of our unprofitable projects having been completed. We have made significant progress in our ongoing projects and are on schedule for projected completions. 04 KEONG HONG HOLDINGS LIMITED CHAIRMAN’S MESSAGE
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