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Management Q & A

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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 Loo Yee Wei, you wrote:

How do you calculate order book? I see the order book stay at 300++ million even though you just won a huge CTE project.

Our order book of S$302.5 million represents the aggregate of contract value of all the projects, which the Group is currently undertaking.

We will eliminate the contract value of projects from the order book upon substantial completion of the projects and add the contract value of the project upon the award of contract to the order book. As the total contract value of projects completed approximates to the total value of projects awarded, this explains why our order book stays at S$300++ million even though we have just secured a huge CTE project.

Dear Peter Lim, you wrote:

Dear Management,

I have the following questions:-

  1. Please kindly explore ways to make the trading of the share more liquid. One way is to increase the no. of share by sub-dividing one share into 2 or 3 shares etc.

    In February 2007, the Company had issued 13.6 million new shares and subsequently, in April 2007, all executive directors had sold some of their shares (ie in form of vendor shares) in order to improve the liquidity of the shares trading in the market. We have noted your suggestion on improving the liquidity of the shares and will highlight to the Board for their consideration.

  2. What is the execution risk for the 100m+ LTA CTE widening contract secured recently given the sheer size and there is no competitive bid?

    OKP has been in the civil engineering and road works business for more than 40 years. We have built and maintained various portions of the expressways in Singapore. We are confident in completing the CTE widening job "on time" and within budget.

    Instead of risks, we have considered the few challenges, which we will face in executing the CTE widening contract. The challenges include the extremely heavy traffic on the CTE, the management of residents in the vicinity and the noise pollution.

Regards

Dear Jayster, you wrote:

There hasn't been any airport runway project announced for a while. Why is that so?

Most of the airport infrastructure projects have been completed.

The Singapore government has increased its spending on public infrastructure projects. What sort of infrastructure project will OKP bid in?

It depends on the type of infrastructure projects which the Government will push out. We will bid for projects which involve the construction of urban and arterial roads, expressways, vehicular bridges, flyovers as well as the maintenance of roads and road-related facilities.

Has OKP faced any problems in refinancing your short-term loans?

We maintain strong relationships with our principal bankers. As at 31 December 2008, our cash and cash equivalents stood at S$35.4 million. We are in a net cash position with no bank borrowings except for finance lease liabilities from the purchase of new plant and equipment to support existing projects.

What cost saving measures has OKP put in place given the slowdown in the general business environment?

The measures include minimising material wastage at site and improving cost and operational efficiencies.

I've seen OKP grew from nothing to what it is today.

I believe the management of the company is doing what it does best which is building roads and reaping the fruits of its hard work over the years.

Well done and keep up the good work!

Dear Serene Lim, you wrote:

There has been a lot of project cancellation in the oil and gas infrastructure sector.

What's the outlook in order book for OKP's JV with Rotary, OKP (Oil & Gas) Infrastructure Pte Ltd?

We will continue to hone our knowledge in the Oil & Gas infrastructure sector and maintain relationships with our clients and industry players. We shall be able to tackle this market when demand picks up again.

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.