Thank you very much for the questions and the opportunities to clarify them. We hope you have a better understanding of our business through this online exchange.

Your questions will be reposted in blue followed by our replies in black.

Rgds,
The Management Team
OKP Holdings Ltd

Dear Jayster, you wrote:

The construction industry in Malaysia is booming because of Iskandar Malaysia and the proposed-speed rail link between Singapore and Kuala Lumpur.

Do you have any plans to expand in Malaysia or Myanmar?

We continue to see a healthy demand for public housing and infrastructure construction in Singapore. As the only listed road specialist in Singapore, we are well-poised to take on projects such as LTA's expansion of Kallang-Paya Lebar Expressway (KPE)/ Tampines Expressway (TPE) Interchange as well as various construction contracts for the Thomson MRT Line.

Overall construction demand, according to the Building and Construction Authority, is expected to remain strong at between S$26.0 billion and S$32.0 billion for 2013. The demand for public sector construction is expected to strengthen and contribute about 53.0% of the industry demand, or between S$14.0 billion and S$17.0 billion worth of construction orders.

In terms of overseas expansion, we will continue to evaluate and explore new business opportunities and appropriate investments to grow our business. We have yet to identify any concrete deals but when we do, we will make the necessary announcements on a timely basis.

Dear Jim, you wrote:

What is OKP's plan to improve earnings in the coming quarters/ years? Should investors be looking out for margins growth or revenue growth?
FY2012 was a challenging year due to the lackluster economy, keen price competition and rising labour costs. In spite of that, we were able to achieve gross margins of 22%, which was close to our five-year average of 23%, and we continued to clinch new contracts from both the public and private sectors.

To mitigate the impact of rising labour costs and manpower constraints at the supervisory level, the Group continues to improve productivity via the adoption of advanced technology such as Building Information Modeling (BIM). Training courses are also offered to OKP's employees to upgrade their skills and equip them with multiple skill sets.

The outlook for the Singapore construction industry for the next twelve months remains positive but competitive. Overall construction demand, according to the Building and Construction Authority, is expected to remain strong at between S$26.0 billion and S$32.0 billion for 2013. The demand for public sector construction is expected to strengthen and contribute about 53.0% of the industry demand, or between S$14.0 billion and S$17.0 billion worth of construction orders.

As at 31 December 2012, the Group's gross order book based on secured contracts stands at S$376.6 million, lasting till 2015.
Are any of the unforeseeable costs (which resulted in cost overruns) claimable from the contracting party? Was there a breakdown in controls in either project tendering or project execution that resulted in these overruns? What is Management doing to prevent such instances from reoccurring?
We have made a claim from the contracting party but the outcome is uncertain currently. We have existing stringent project management protocols and strict internal controls in place. However, we will learn from this one-off occurrence and implement tighter controls where possible.
Is it possible to give clearer guidance on revenue targets for FY2013?
We are unable to provide guidance on future revenue numbers. However, our view is that the outlook for the construction industry for the next twelve months remains fairly healthy based on government projections. As such, it should follow that the outlook for OKP is correspondingly optimistic, barring unforeseen circumstances.

Dear Daniel Koh, you wrote:

When are you going to launch the project at No. 4 Amber Road? Is it delayed due to the government's property tightening measures?

We will make the necessary announcement once the launch date is fixed. We do not expect to be materially affected by the government's property market cooling measures.

Dear Tan Lim Hwee, you wrote:

Is the company still involved in the roadworks for the F1 Circuit in Singapore?

The Company is currently not involved in the roadworks for the F1 Circuit in Singapore.

Dear Alvin, you wrote:

I applaud the reduction in directors' compensation as profits go south.

It was mentioned that the spike in Cost of Works was due to a provision for foreseeable loss from some sewer-related projects. Can you reveal the amount of this provision so that the Cost of Works excluding this provision can be better analysed?

We are not in a position to provide additional information beyond what has been publicly disclosed in our results announcement and annual report.

OKP has a considerable size of cash and cash equivalent. With the steady cash flow, it seems OKP does not need that much available cash. Are there any plans to better utilise the cash holding?

As we are actively exploring opportunities for new businesses and appropriate investments to grow our business, such cash holding will be useful.

Thank you.

Dear Investors,

Thank you for all your questions and the interest in OKP Holdings Ltd. We have come to the end of this Q&A session.

We have enjoyed and learnt much from your questions and we hope that you have a better insight of our Company and know more about our operations.

Rgds,
The Management Team
OKP Holdings Ltd.