These notes form an integral part of and should be read in conjunction with the accompanying financial statements. 1. GENERAL Keong Hong Holdings Limited (the “Company”) (Registration Number: 200807303W) is a limited liability company incorporated and domiciled in Singapore and is listed on the Singapore Exchange Securities Trading Limited (the “SGX-ST”). The registered office and principal place of business of the Company is located at 20 Chin Bee Drive, Singapore 619866. The principal activity of the Company is that of investment holding. The principal activities of the respective subsidiaries and associate are disclosed in Notes 12 and 13 to the financial statements. The immediate holding company is LJHB Capital (S) Pte Ltd (“LJHB Capital”), a wholly-owned subsidiary of Forevertrust International (S) Pte. Ltd. (“Forevertrust”) which is, in turn, a wholly-owned subsidiary of LJHB Holdings (S) Pte. Ltd. (“LJHB Holdings”). The ultimate controlling party is Ms. Liu Haiyan who wholly owns LJHB Holdings. The statement of financial position of Company as at 30 September 2025 and the consolidated financial statements of the Company and its subsidiaries (the “Group”) and statement of changes in equity of the Company for the financial year ended 30 September 2025 were authorised for issue in accordance with a Directors’ resolution on the date of Directors’ Statements. 2. SUMMARY OF MATERIAL ACCOUNTING POLICIES 2.1 Basis of preparation The financial statements of the Group, and the statement of financial position and statement of changes in equity of the Company have been drawn up in accordance with the provisions of the Singapore Companies Act 1967 and Singapore Financial Reporting Standards (International) (“SFRS(I)s”) including related Interpretations of SFRS(I) (“SFRS(I)s INT”) and are prepared on the historical cost basis, except as disclosed in the accounting policies below. The individual financial statements of each Group entity are measured and presented in the currency of the primary economic environment in which the entity operates (its functional currency). The financial statements of the Group and the statement of financial position and the statement of changes in equity of the Company are presented in Singapore dollar (“$”) which is also the functional currency of the Company, and all values presented are rounded to the nearest thousand (“$’000”), unless otherwise indicated. In the current year, the Group has adopted all the new and revised SFRS(I)s and SFRS(I)s INT that are relevant to its operations and effective for annual periods beginning on or after 1 October 2024. The adoption of these new or revised SFRS(I)s and SFRS(I)s INT did not result in changes to the Group’s and Company’s accounting policies, and has no material effect on the current or prior year’s financial statement and is not expected to have a material effect on future periods. Going concern The Group’s cash flows are project-driven and sensitive to the timing of certification, billing and collection. Although operating cash outflow of the financial year ended 2025 was not significant in absolute terms being operating cash outflow of S$495,000, conditions were identified that may pressure liquidity, including continued delays in certain construction projects since the COVID-19 period, potential timing mismatch between costs incurred and cash receipts, and heightened estimation uncertainty over cost-to-complete and the recoverability and timing of variations, claims or extension of time approvals. Prolonged delays may also give rise to downside exposure such as liquidated damages or dispute settlements if outcomes are unfavourable. Notwithstanding these indicators, the Directors have assessed that there is no material uncertainty related to these conditions, based on the following factors: (a) The Directors have considered management’s cash flow forecasts for the 18-month period from April 2026 to September 2027, including the impact of potential liquidated damages, which indicate that the Group will be able to meet its obligations as and when they fall due; and (b) Achieving the forecasted operating cashflows from the Group’s core business comprising but not limited to improvement of the profit margin by streamlining the business operations, timeliness in the completion of the construction projects, and improved liquidity management. ANNUAL REPORT 2025 KEONG HONG HOLDINGS LIMITED 66 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2025
RkJQdWJsaXNoZXIy NTM2MDQ5