Keong Hong Holdings Limited (“Keong Hong” or together with its subsidiaries, the “Group”) recorded an improvement in financial performance for the full year ended 30 September 2025 (“FY2025”) as compared to the previous year (full year ended 30 September 2024 or “FY2024”). We recorded revenue of S$182.4 million or a 5.7% increase over FY2024’s revenue of S$172.6 million. The increase in revenue was attributed to higher revenue recognised from construction projects, such as Sky Eden@Bedok, Tengah Plantation C5 and Grand Hyatt Singapore that made significant progress during the current year. Cost of sales decreased to S$169.1 million (FY2024 cost of sales: S$178.0 million) due to effective cost management. Consequently, the Group’s gross profit stood at S$13.3 million in FY2025 as compared to a gross loss of S$5.4 million in FY2024. The improved gross profit was driven primarily by the near-completion of pre-pandemic projects, which incurred higher construction costs. Improved construction productivity also played a significant part. Gross profit margin was 7.3% as compared to a negative gross profit margin of 3.1% in FY2024. The Group’s other income rose by 50.3% to S$13.1 million as compared to S$8.7 million for the corresponding period last year. This improvement was mainly attributable to net foreign exchange gains from the appreciation of the United States dollar against the Singapore dollar, higher proceeds from the sale of scrap steel, and increased rental income from warehouses and dormitories. Finance costs decreased by 26% to S$1.6 million in FY2025 from S$2.1 million in FY2024 due to lower levels of borrowings during the current financial period. The Group recorded a net gain of S$85,000 from its joint ventures in FY2025 as compared to a net gain of S$44,000 in FY2024, which was mainly attributable to the share of interest income from joint ventures. The Group’s share of losses of associates decreased by 7.0% to S$9.9 million in FY2025 as compared to S$10.6 million in FY2024. The decrease was mainly due to the absence of losses from the Group’s investment in an associate that was disposed of on 30 June 2025. The Group consequently recorded a net profit after tax of S$10.2 million as compared to a net loss after tax of S$3.9 million in FY2024. The Group’s balance sheet as at 30 September 2025 registered a net cash position of S$26.8 million as compared to S$20.8 million in FY2024. Total assets stood at S$177.7 million as compared to total liabilities of S$117.5 million (FY2024: total assets of S$194.3 million and total liabilities of S$143.8 million). The Group’s gearing ratio was 0.54 as compared to 0.65 in FY2024, due mainly to repayment of borrowings and lesser operating activities towards the end of the financial year. The Group recorded earnings per share of 4.3 Singapore cents and a net asset value per share of 25.6 Singapore cents. BUILDING CONSTRUCTION – HIGHLIGHTS The Group’s current project pipeline consists of Solitaire on Cecil and Tengah Plantation C5. Solitaire on Cecil is a Grade A office cum commercial development in the Central Business District comprising a 20-storey building with restaurants and retail shops on the first storey and two basement car parks. We are pleased to report that piling works, the most technically demanding phase of the development, have been successfully completed. With the ground risks substantially mitigated, the project has transitioned into excavation and pile cap construction works, and progress has stabilised. Management remains focused on maintaining steady progress and advancing the substructure works in accordance with the revised programme. Works on the Housing and Development Board’s Tengah Plantation C5 Build-To-Order project, which includes 15 residential blocks with heights ranging from 6 to 15 storeys, landscaped courtyards, fitness stations and playgrounds, have been progressing well with structural works and site activities generally on schedule. Key building and civil works are advancing in accordance with the construction programme. During the course of the year, the Group had completed several projects. Phase 4 of the Grand Hyatt Singapore project, which consisted of refurbishment to over 400 rooms was completed in July 2025. Phase 2 of the new National Skin Centre at Mandalay Road, comprising a five-storey building with basement and Mechanical and Electrical roof with basement was awarded the Certificate of Substantial Completion in the first quarter of 2025. The Punggol Regional Sports Centre is in the final stages of completion and is slated to obtain its Temporary Occupation Permit in March 2026. The new sports centre has a wide range of world-class facilities, including a 5,000-seater football stadium, a swimming complex with five pools, an indoor sports hall with 20 badminton courts and three convertible basketball courts, sheltered tennis and futsal courts, a fitness gym and wellness studio as well as community activity rooms and event spaces. While global headwinds may impact business performance, the construction sector in Singapore is anticipated to remain strong. The Building and Construction Authority’s (BCA) projection is that total construction demand in 2026 will range between S$47 billion and S$53 billion with total construction demand projected to reach an average of between S$39 billion and S$46 billion per year from 2027 to 2030 driven by public sector housing, community educational and health projects and significant urban rejuvenation works1. While challenges will remain, such as shortage of skilled labour and fluctuating raw material prices, the Group remains committed to focus efforts on winning both private sector and public housing, healthcare and other addition and alteration projects, given our strong track record in these sectors. PROPERTY DEVELOPMENT AND INVESTMENTS The property market remained strong in 2025 although it is showing signs of gradually slowing down in 2026. Private housing pricing increased by 0.6% in the fourth quarter of 2025 compared with the 0.9% increase in the previous quarter. For the whole of 2025, prices of private residential properties increased by 3.3%, marking the smallest increase in a year since 20202. The property sector in Singapore is forecasted to remain strong given the limited supply of land, high quality infrastructure, stable 1 Building and Construction Authority, “Steady Construction Demand in 2026 as Singapore Steps Up Support for Built Environment Firms Through Collaboration and Innovation”, 22 January 2026. 2 Urban Redevelopment Authority, “Release of 4th Quarter 2025 real estate statistics”, 23 January 2026. ANNUAL REPORT 2025 KEONG HONG HOLDINGS LIMITED 12 FINANCIAL AND OPERATIONS REVIEW
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