RC’s access to Independent Advice Provision 6.4 The RC may from time to time, when necessary or required, seek advice from external consultants in framing the remuneration policy and determining the level and mix of remuneration for Directors and Management, so that the Group remains competitive in this regard. During FY2025, the Company did not engage any independent remuneration consultant. Performance-linked Remuneration The Company adopts a remuneration policy for Executive Directors and key management personnel comprising a fixed component and a variable component. The fixed component is in the form of a base salary. The variable component is in the form of a variable bonus that is linked to the performance of the Company and the individual’s performance, the latter of which is assessed based on their respective key performance indicators allocated to them. Staff appraisals are conducted once a year. The Executive Directors do not receive Directors’ fees. The corporate and individual performance-related elements of remuneration are designed to align the interests of Executive Directors with those of shareholders in order to promote the long-term success of the Company. The Executive Directors and key management personnel had met their respective key performance indicators in respect of FY2025. Provisions 7. 1 and 7.3 According to Mr Leo’s service agreement as CEO, he is entitled to a performance bonus if the audited consolidated profit before taxation of the Group exceeds S$5.0 million for the financial year. For FY2025, Mr Leo was not entitled to any performance bonus. Mr Leo’s service agreement, which commenced on 1 July 2023, ended on 30 June 2025, and was not renewed upon its expiry. Following his cessation as CEO, he was redesignated as Non-Executive and Non-Independent Chairman of the Board with effect from 1 July 2025. Directors’ Fees for Non-Executive Directors Director’s fees for the Independent Directors and Non-Executive Director are set in accordance with the remuneration framework comprising basic fees and committee fees, taking into account their effort, time spent and responsibilities. These are subject to the approval of the Company’s shareholders during the Company’s AGM. Provision 7.2 Remuneration Report for Directors and Key Management Personnel The remuneration components paid to the Non-Independent Non-Executive Chairman and each of the Executive Directors, and Independent Directors for FY2025 are as follows: Provisions 8. 1 and 8.3 Remuneration Bands and Name Fees S$ Salary S$ Bonus S$ Benefits in kind S$ Total Remuneration S$ Non-Independent Non-Executive Chairman S$500,000 to below $500,000 Leo Ting Ping Ronald 18,7501 (4%) 270,000 (58%) 135,0002 (30%) 41,9353 (8%) 465,685 (100%) Executive Directors Er Ang Hooa – – 357,600 (80%) 29,800 (7%) 61,640 (13%) 449,040 (100%) Xu Quanqiang – 216,391 (84%) 25,250 (10%) 17,034 (6%) 258,675 (100%) Notes: 1 comprises Chairman Fee of S$18,750 (pro-rated) effective 1 July 2025 and Advisor Fee of S$36,000 paid by Keong Hong Construction Pte Ltd (“KHC”), a subsidiary of the Company pursuant to an advisory contract. 2 represents annual wage supplement of minimum of three months according to the Service Contract. 3 comprises transport allowance of S$6,000 paid by KHC. ANNUAL REPORT 2025 KEONG HONG HOLDINGS LIMITED 37 CORPORATE GOVERNANCE REPORT
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