BUILDING FINANCIAL AND OPERATIONAL RESILIENCE Our focus remains on building financial and operational resilience. Despite a more optimistic outlook in the year ahead, there are still challenges to navigate. Operating, manpower and borrowing costs remain factors to be carefully considered and weighed against investment and expansion opportunities. Prudent financial management, productivity improvement and technological investment are essential in ensuring the Group’s competitiveness. In addition to advancing our Integrated Digital Delivery (IDD) initiatives – encompassing Design for Manufacturing and Assembly (DfMA) methodology, Advanced Precast, Building Information Modelling (BIM) and Virtual Design and Construction (VDC) – we deployed smart CCTV systems equipped with artificial intelligence (AI) capabilities at our Tengah Plantation C5 project to enhance real-time safety oversight. The system is able to identify potential safety non-compliance, including unsafe work practices and missing personal protective equipment, enabling timely intervention and corrective measures. This technology-driven approach strengthens our safety governance framework, mitigates operational risk exposure, and underscores our continued commitment to providing a safe and responsible working environment across our projects. SOCIAL RESPONSIBILITY AND SUSTAINABILITY We continue to support the next generation of professionals in the building construction industry, believing that in order to maintain high standards and innovation, we must nurture and develop young talents. Through the Institute of Technical Education’s (ITE) WorkLearn Technical Diploma programme, we have, over the years, trained several students and continued to do so in the current financial year. We have one ITE trainee continuing his Work-Learn Technical Diploma programme at the Tengah Plantation C5 site and another new ITE trainee joining us in April 2026. In FY2025, our upskilling, reskilling and self-improvement programmes included sponsoring our assistant project manager, Ms Michelle Leu a master’s degree in international construction management from Nanyang Technological University in August 2025. On the sustainability front, the solar panel installation at our Chin Bee factory has been commissioned and begun providing green energy since July 2023, supplementing the power requirement at the production floors and administration blocks of 20 Chin Bee Drive and 21 Fourth Chin Bee Road. Our 425 kWp rooftop solar photovoltaic system generates approximately 550,000 kWh of renewable electricity annually, reducing carbon emissions by an estimated 215 tonnes of carbon dioxide each year. KEEPING OUR CORE BUSINESS ROBUST Construction remains our core strength and despite the optimistic outlook of the construction industry, we are keenly aware of the inherent, cyclical and operational risks within the industry. Our focus continues to be on enhancing project execution, strengthening cost management, improving productivity and adopting new technologies to improve and deliver performance. We will take a more nimble and proactive approach in adapting our strategies to the evolving market environment. There will be a transition period for us all, especially our employees, who have always been the backbone and driving force of the Group. They are our greatest strength and through various upskilling, reskilling and training initiatives, we will ensure that everyone progresses together with the Group. The outlook for the medium-term looks promising. Singapore’s GDP forecast has been revised upwards given the economy’s resilience and the strength of the regional economies. As we have done previously, we will remain prudent and circumspect in our financial, operational and investment strategies, while at the same time, moving forward boldly should there be opportunities. APPRECIATION AND ACKNOWLEDGEMENTS It leaves us now to express our sincerest appreciation to our staff and executive management team. Their teamwork, dedication and determination have once again ensured a successful year. We would like to thank our Board of Directors whose leadership, foresight and expertise have been invaluable in helping us overcome challenges. We would also like to take this opportunity to express our heartfelt gratitude to Mr Chong Wai Siak and Mr Kenneth Koh, who will be retiring from their positions as Independent Director after the forthcoming Annual General Meeting. We thank them for their dedication in serving on our Board through the years and wish them every success and happiness. Lastly, thanks to our business partners, associates, customers, and shareholders for continuing to support the Group. While there has been a change in the executive leadership, rest assured that the transition has been smooth and that the Group continues to remain steadfast in its commitment to all its stakeholders, in bringing long-term sustainable value to all. LEO TING PING RONALD XU QUANQIANG Chairman Interim Chief Executive Officer ANNUAL REPORT 2025 KEONG HONG HOLDINGS LIMITED 07 LETTER TO SHAREHOLDERS
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