With the demand nowadays to meet the frequently‐evolving requirements of disclosure, greater transparency and better corporate governance, we seek to provide our stakeholders with timely and accurate information on our business and financial performance.
We are committed to ensuring that our investors have a full understanding of and are kept upto-date on our strategic directions, business operations and market environment so that they can make informed investment decisions.
To achieve this aim, we engage regularly with our investors through various channels in order to communicate effectively with them. Our senior management and investor relations (IR) team proactively keep the communication channels open with the investment and financial community, as well as the media.
Our guiding principle in relation to our shareholders is our commitment to maximising their return on investment while maintaining excellence in our products and services. We are committed to creating and enhancing long-term value for all our shareholders and investors. We aim to build a solid, sustainable and resilient company by gaining a wide range of capabilities and increasing our expertise, competence and knowhow so as to fulfil our vision to be a leading transport infrastructure and civil engineering company in Singapore and overseas. Through this approach, we are able to achieve sustainable business growth and deliver stable results ‐ to meet the expectations of our shareholders and investors.
To move ahead as an industry leader in the competitive environment, we diligently monitor the external business and macroeconomic climate affecting our business and address any issue strategically. We keep upto-date on best practices by putting in place excellent management practices, with efficient operational procedures to ensure a smooth practical workflow. We emphasised to all staff the importance of delivering high-quality customer services, which meet and go beyond customers' expectations.
We continually aim to enhance our IR practices for the benefit of our stakeholders. We are a member of the Investor Relations Professionals Association (Singapore) and have renewed our membership for 2019. The association's primary objectives include championing IR best practice, enhancing professional competencies and elevating the overall standard of the IR profession in Singapore.
Practising Good Corporate Governance
As a listed company, OKP is resolute in ensuring good corporate governance, whereby it manages, directs and balances the interests of all its stakeholders, which include customers, employees, suppliers, business partners, investors and the general public. In the light of constantly developing requirements for better disclosure, transparency and corporate governance, we believe that strong corporate governance is vital in gaining and maintaining investors' loyalty and confidence as well as drawing the attention of new investors.
We fully supports the pledge towards board diversity, which is initiated for listed companies by the Singapore Institute of Directors and Singapore Exchange (SGX) in 2016. The pledge states: "We, as corporations, are committed to promoting diversity as a key attribute of a well-functioning and effective Board. We believe that a diverse Board will enhance decision making by harnessing the variety of skills, industry and business experiences, gender, age, ethnicity and culture, geographical background and nationalities, tenure of service, and other distinguishing qualities of the members of the Board."
We have instituted processes to improve our corporate governance framework to enable greater transparency and fast-track management decision-making processes, as well as reinforce management oversight. One of the ways we do this is by adopting the criteria used to score the Singapore Governance and Transparency Index (SGTI) ranking for SGX companies administered by the National University of Singapore Business School for Governance, Institutions and Organisations, CPA Australia, and the Singapore Institute of Directors.
Currently in its 10th year, the SGTI is a unified framework comprising two separate categories ‐ the General Category, and the REIT and Business Trust Category. For the General Category, the SGTI score has two components ‐ base score and adjustment for bonuses and penalties. The base score for companies contains five pillars ‐ board responsibilities (35 points), rights of shareholders (20 points), engagement of stakeholders (10 points), accountability and audit (10 points), and disclosure and transparency (25 points) ‐ which add up to a base score of 100 points. The aggregate of bonuses and penalties is incorporated to the base score to arrive at the company's SGTI total score.
According to a Business Times report on 7th August 2018, we ranked 150 in SGTI 2018 score, compared to 73rd in SGTI 2017, with an overall SGTI 2018 score of 66 compared to 69 in 2017.
The SGTI results were based on a study covering 589 companies in the General Category, and 43 Reits and Business Trusts, which released their annual reports in 31 May 2018.
We proactively engage the investment community and demonstrate our commitment by providing up-to-date and reliable information on corporate developments to help investors and other interested parties in making well‐informed decisions in relation to their investments. We trust that this transparency contributes significantly towards a good understanding of the Group and its activities, as well as enable the investing community to evaluate how well we are is performing.
As a trustworthy organisation committed to excellent corporate governance, we fully support the Corporate Governance Week, which is organised annually by the Securities Investors Association (Singapore). Its focus on building and implementing excellence in corporate governance resonates with the way the company manages its business and how it communicates with its shareholders.
Our representatives took part in the 9th Corporate Governance Week with the theme "Towards Excellence in Corporate Governance", which was held from 14‐28 September 2018.
Investor Relations Policy
We have a clear IR policy, which is to ensure fair, transparent and ethical business dealings with all our stakeholders. We make certain that we release pertinent and material information according to these basic principles and in accordance with the SGX"s rules. We are proactive in providing shareholders and other parties in the financial markets with the same and concurrent information about matters that may influence the movement of our share price.
We have been recognised for our excellence in IR and dedication to good corporate governance, winning numerous awards and accolades in recent years, namely:
- Runner‐up in the Most Transparent Company Award in the Construction and Materials and Mainboard Small Caps categories at the Securities Investors Association (Singapore) (SIAS) 16th Investors' Choice Awards 2015;
- Best Investor Relations Award (Gold) in the "Companies with less than $300 million market capitalisation" category at Singapore Corporate Awards(SCA) 2015;
- Merit for the Singapore Corporate Governance Award under Mainboard Small Caps category; and runner-up for the Most Transparent Company Award in the Constructions and Materials category at SIAS 15th Investors'Choice Awards 2014;
- Best Investor Relations Awards (Bronze) in the "Companies with less than $300 million in market capitalisation" category at SCA 2013;
- Winner of the Most Transparent Company Award under Mainboard Small Caps category at SIAS 14th Investors' Choice Awards 2013;
- Winner of the Most Transparent Company Award under Mainboard Small Caps category at SIAS 13th Investors' Choice Awards 2012;
- Best Investor Relations Awards (Bronze) in the "Companies with less than $300 million in market capitalisation" category at SCA 2012;
- Best Investor Relations Award (Gold) in the "Companies with less than $300 million in market capitalisation" category at SCA 2009; and
- Best Investor Relations Award (Silver) in the Small Market Capitalisation category at SCA 2008.
We do not have a formal dividend policy. The form, frequency and amount of dividend payable on our shares will depend on our financial position, results of operations, capital needs, plans for expansion, and other factors as our Board of Directors may deem appropriate. We have maintained a dividend payout of 12.5 per cent to 48.8 per cent over the past five years.
In today's demanding investment climate with calls for better corporate governance, we recognise the significance of engaging and communicating effectively with shareholders, investors and other stakeholders. To achieve this aim, we use various communication channels to share and facilitate communication with existing and potential investors, financial analysts and the media. These channels include group briefings to analysts, investors and the media; one‐to‐one meetings with shareholders and potential investors; and the investor relations section of our corporate website. Some of our activities include the following:
Annual General Meeting
One of the most important platforms to interact with investors is the annual general meeting (AGM), which is held every April. Besides providing a chance for investors to raise any issues and get clarification, the AGM also enables the Board of Directors and senior management team to respond directly to them. All Board members attend and answer questions from shareholders relating to the past, current and future directions of our Group's business, explain decisions made and tackle all concerns raised.
The Board of Directors and senior management take full advantage of the AGM to brief shareholders on our latest developments and provide an avenue for shareholders to ask questions and vote on the resolutions being tabled. All directors especially the Chairpersons of the Audit, Nominating and Remuneration Committees are present to clarify matters raised. Shareholders may also submit written questions relating to the statutory audit report and we will respond in a timely manner to their questions.
Announcements Of Corporate Developments
As an organisation which aims to keep its stakeholders well‐informed of the latest developments, we make it a priority to issue timely announcements on new contracts, strategic developments, financial results and other important information through the SGXNET website, press releases, email alerts and our investor‐friendly website.
Our investor relations website is a key platform through which we broadcast our news to the investment community. It is a resource for corporate, financial and stock information, and announcements of important business developments. It also houses our quarterly results and annual reports. Since 2003, our website has featured webcasts comprising videos of full‐year results messages plus presentation slides, thus enabling those who could not attend the AGMs to keep abreast of our latest financial and operational performances through the years.
All our announcements are posted immediately on our website, following its release to the SGX to ensure fair, equal and speedy dissemination of information.
In this way, all shareholders and investors can keep track of our latest business developments promptly and effectively.
Analyst And Media Briefings
During the release of our quarterly results, the senior management team is present to meet with analysts to answer their questions and address any issues. Outside of the financial results announcement periods, where necessary and appropriate, the senior management team would also meet analysts and fund managers, who would like to better understand our operations.
Where appropriate and when opportunities arise, we also conduct media interviews to give shareholders and the public greater insights into our business and management's direction. We have also organised tours to some of our facilities for interested analysts and the media.
News about OKP have been featured in various newspapers, journals, magazines and broadcast media. These included The Business Times, Lianhe Zaobao, The Straits Times, The Edge Singapore, Singapore Business Review, Today Online, Shares Investment, Biz Daily Online, Reuters, Channel NewsAsia, High Net Worth, BT Invest, i3investor.com and Inside Invest magazine.
Our annual report is an important communication tool for stakeholders and other interested parties. Thus, we give special attention to ensure that the publication gives a precise and accurate snapshot of our activities during the year as well as our developments, policies and strategic direction in the near future.
The annual report and the notice of AGM are sent to shareholders at least 20 working days before the meeting. Our hard work has paid off and our annual reports have won numerous awards. These include:
- Best Annual Report Award (Gold) in the "Companies with less than $300 million in market capitalisation" category at Singapore Corporate Awards (SCA) 2016;
- Best Annual Report Award (Gold) in the "Companies with less than $300 million in market capitalisation" category at SCA 2013;
- Best Annual Report Award (Gold) in the "Companies with less than $300 million in market capitalisation" category at SCA 2010;
- Best Annual Report Award (Silver) in the "Companies with less than $300 million in market capitalisation" category at SCA 2009;
- Best Annual Report Award (Gold) for SESDAQ company at the Inaugural SCA 2006 for excellent standards of corporate disclosure; and
- Second runner-up at 30th Annual Report Awards 2004 in the SESDAQ-listed companies category organised by the Institute of Certified Public Accountants of Singapore, Investment Management Association of Singapore, Securities Investors Association (Singapore), Singapore Institute of Management, Singapore Institute of Directors, Singapore Exchange Limited and The Business Times.
Technology is a key and useful tool today to reach out to all our stakeholders. Thus, we take full advantage of technology by hosting an annual webcast to communicate with our investors, taking questions online via an Online Management Question-and-Answer forum with investors through Shareinvestor.com.
Through this forum, all shareholders and other interested parties will be able to email their feedback and queries to our management and be assured of a prompt response. Our website is frequently updated to provide the latest information on our operations and corporate developments.