Dear Investors,
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 Paul Heng, you wrote:
Congrats on winning the PUB contracts last year, may I know what other government contracts are you bidding for currently?
The Group will continue to capture new opportunities for our infrastructure and civil engineering business by leveraging on our strong track record and expertise. Whilst we are not at liberty due to commercial sensitivities to provide information on the contracts that we are currently bidding for, we expect to be able to capture new opportunities by tapping on the strong demand in the public sector and will announce when we are awarded material contracts.
Dear Evelyn Tan, you wrote:
Why do you keep buying freehold shophouses in Singapore? What do you intend to do with them?
The acquisition of properties is part of the Group's effort to grow our recurring income through a portfolio of investment properties. The properties which we have acquired are freehold, strategically located shophouses that offer good rental yield, and which are either fully leased or offer good capital appreciation opportunities.
Dear Leong Chee Kheong, you wrote:
Your rental income profit is more than your net profit, why do you still continue with the construction and maintenance business when you can get higher return from investment properties?
The Group's core business and focus has always been in the construction and maintenance business. In FY2021, the Construction and Maintenance segments continued to be strong revenue pillars and core businesses, accounting for 92.1% of the Group's total revenue. Moving forward, the Group will continue to strengthen our capabilities in our core civil engineering business in order to maintain our status as a leading civil engineering contractor across various industries.
Property Investment ties in well with our Group's effort to grow our recurring income and we will also look for opportunities to expand this business.
Dear Ryan Ng, you wrote:
Will you continue with the property development business? Which site are you eyeing to replenish your land bank?
The Company is progressing well with our two residential developments, The Essence at Chong Kuo Road and Phoenix Residences at Phoenix Road. The Essence, which launched in March 2019, is expected to TOP in 2023. It has received good response and has been fully sold.
Meanwhile, for Phoenix Residences, we have stepped up our marketing effort to engage homebuyers though both physical and virtual channels and sold approximately 38% of the units as at 21 February 2022.
Looking ahead, we will continue to prudently look to broaden our foothold in property development and investment through strategic partnerships with esteemed partners. We expect the private residential market to remain challenging and will remain cautious and selective in replenishing our land bank.
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.