During the year under review, the global economy encountered many difficulties largely due to the United States trade tariffs, rising trade barriers, and ongoing geopolitical conflicts. All these issues have negatively impacted economies and business prospects worldwide, including Singapore.

For OKP Holdings Limited (OKP), we are watchful but optimistic that we can sustain our organisation's growth. We will be achieving a significant milestone soon, as Or Kim Peow Contractors (Private) Limited (OKPC) approaches its 60th anniversary in 2026. It is timely to recall OKPC's journey from its humble beginnings as a sole-proprietor in 1966 to being part of the Group's accomplishments today. It expanded its capabilities from the 1990s to 2010 and sustained growth to become the foundation for the publicly-listed OKP, which was listed on the Singapore Exchange (SGX) in 26 July 2002.

Over the past 60 years, our progress has been guided not by chance, but built upon a strong foundation of mutual trust and reputation (信誉), supported by enduring values that guide everything we do. This trust stems from the way we treat our staff, clients and partners with utmost sincerity (诚意) and respect; along with a commitment that we conduct our business with integrity (诚信) and fairness. These important values have carried us through six decades and will continue to do so in the years ahead.

Indeed, I am very grateful for all the hard work, dedication and contributions from all our stakeholders for your staunch backing through the decades to make what our organisation is today.

The Singapore government's continued commitment to infrastructure development and urban mobility presents meaningful opportunities for companies with strong civil engineering capabilities. We remain well-positioned to participate in these developments through our proven track record and technical expertise in transport infrastructure and civil engineering projects.

REVIEWING OUR PERFORMANCE

The Group is glad to report a significant 22.9 per cent jump in revenue to $223.5 million for the financial year ended 31 December 2025 (FY2025), up from $181.8 million in the financial year ended 31 December 2024 (FY2024).

The positive revenue growth was primarily because of a higher percentage of revenue recognised from various ongoing and newly awarded construction and maintenance projects as they progressed to a more active stage in FY2025.

The main contributors to the Group's revenue continued to be the construction and maintenance segments. The construction segment accounted for 69.1 per cent and the maintenance segment for 29.4 per cent of total revenue. Gross profit increased by 24.5 per cent to $72.4 million in FY2025, up from $58.2 million in FY2024.

Chairman

The Group's balance sheet remains sound. With a solid cash position of $161.7 million as at 31 December 2025, net tangible assets amounted to $237.6 million compared to $201.4 million a year ago. This was equivalent to net tangible assets per share of 77.39 Singapore cents, compared to 65.60 Singapore cents per share in the previous year.

For long-term growth prospects and to enhance share liquidity and reward shareholders, the Group undertook a bonus issue of 231,322,862 new shares on the basis of three new OKP shares for every four existing shares in February 2026.

To thank shareholders for their continued support, the Board is proposing a final dividend of 2.0 Singapore cents per share, comprising a final dividend of 0.7 Singapore cent and a special dividend of 1.3 Singapore cents per share. This represents a 40.0 per cent increase in total dividend payout, rising from $7.7 million in the previous year to $10.7 million in FY2025. Based on OKP's share price of $0.73 (being closing price as at 31 December 2025, and adjusting for the bonus issue that was completed in February 2026 on the assumption that the bonus issue had been completed as at 31 December 2025), this translates to a dividend yield of 2.7 per cent.

SUSTAINING OUR GROWTH

We have great confidence in our future. The Group has been sustaining its growth by winning bigger projects. In 2025, we successfully secured two projects, worth a total of approximately $281 million. One of these projects is the largest contract win in our corporate history when OKPC secured a $258.3 million project from the Land Transport Authority for the design and construction of the Cycling Path Network for the East Region in Singapore.

The cycling path network initiative supports Singapore's vision of promoting active mobility by providing safe and convenient cycling routes that connect residential areas to key transport nodes such as MRT stations. The national cycling network is expected to expand progressively across the island and reach approximately 1,300 kilometres by 2030.

Our Group is currently involved in the development of cycling path networks in the West and Central regions as well. These projects reflect the confidence placed in OKP's capabilities and our commitment to delivering high-quality infrastructure solutions.

We continue to be sustained by a solid pipeline of projects. As at 31 December 2025, OKP's net construction order book stood at $588.0 million, with projects extending till 2031. This provides us with good earnings visibility in the coming years.

Looking ahead, we will continue to focus on our core strengths in civil engineering and transport infrastructure projects while exploring selective overseas opportunities. At the same time, we will seek to diversify our income streams through property development and investment initiatives.

The Group also remains committed to strengthening its corporate governance practices. In line with SGX's emphasis on cultivating “Trust 2.0”, we will continue to reinforce a culture of integrity, accountability and transparency throughout the organisation, supported by strong governance frameworks and effective oversight by our Board committees. We seek to fortify our corporate governance and develop our culture of trust and accountability by adhering to this guidance, especially for our audit and risk committees. In line with this guidance, OKP remains committed to strengthening its corporate governance framework and continuously enhancing its culture of trust and accountability. We recognise that strong governance is fundamental to maintaining stakeholder confidence and ensuring the long-term sustainability of our business.

A NOTE OF THANKS

On behalf of the Board, I would like to express my deep appreciation for the continuing unwavering support of our shareholders, clients, business associates and suppliers through the many decades. I am indeed very appreciative to the management team for their hard work, strong leadership and good teamwork. As we work collectively to achieve good results., I am sure that each of you will give your commitment and energetic efforts towards building a resilient yet progressive organisation.

My vote of thanks also goes to all Board members for their guidance and insightful contributions. To all stakeholders, thank you for your resolute and steady support.

Our firm belief is that we can sustain our growth and shape our future together to attain our vision to be one of the leading transport infrastructure and civil engineering companies in Singapore and the region. Working as a united and effective team, we are well-positioned for the years ahead.

Chairman

Or Kim Peow
Group Chairman