With increasing demand for listed companies to demonstrate greater transparency and corporate governance in their business dealings, investors are looking closely for clear and accurate disclosures. Due to this, the Group aims to provide its stakeholders with timely and correct information on its business and financial performance.
We are committed to ensuring that our investors have the necessary knowledge and are kept abreast on our strategic directions, business operations and market circumstances to enable them to make informed investment decisions.
To achieve this goal, we engage regularly and virtually if need be, with our investors through various touchpoints. Our senior management and investor relations (IR) team proactively make themselves available through various communication channels to the investment and financial community, and the media.
Our guiding principle in relation to our shareholders is our commitment to maximising their return on investment while maintaining top quality in our products and services. We are unwavering in creating and enhancing long-term value for all our investors and stakeholders. We aim to develop a stable and sustainable company by attaining a wide range of competencies and growing our skillsets, track record and knowledge so as to fulfil our vision to be a leading transport infrastructure and civil engineering company in Singapore and overseas. Through this approach, we can attain sustainable and steady business growth and deliver good results to meet the expectations of our shareholders and investors.
To continue to be in a leadership position in the competitive environment, we proactively monitor the external business and macroeconomic climate affecting our business and address any issue strategically. We keep up-to-date with best practices by setting up good management practices, with effective operational processes to ensure a smooth practical workflow. We highlight to all our staff the importance of delivering top-notch customer services, which exceed customers' expectations.
The Group continually aim to enhance its IR practices for its stakeholders' benefit. We are a member of the Investor Relations Professionals Association (Singapore) for 2020. The association's primary goals 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 committed to ensuring excellent corporate governance, whereby it manages, directs and balances the interests of all its stakeholders, which include customers, workforce, suppliers, business partners, investors and the public. We passionately believe that solid corporate governance is vital in gaining and maintaining investors' confidence and support as well as drawing in fresh investors.
The Group supports the pledge towards board diversity, which was introduced 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."
Within our company, we have instituted processes to strengthen our corporate governance framework to provide greater transparency and accelerate management decision-making procedures, as well as boost 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, which is an initiative administered by CPA Australia, National University of Singapore Business School's Centre for Governance, Institutions and Organisations, and the Singapore Institute of Directors.
Currently in its 12th 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 (BREAD) – 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). All these 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.
A Business Times report on 5 August 2020 ranked OKP 157 in the SGTI 2020 with an overall score of 75, including 2 bonus points. In comparison, it was ranked 101 in SGTI 2019 with an overall score of 74. The SGTI 2020 covers 577 listed companies in the General Category, and 45 Reits and Business Trusts that released their annual reports before end June 2020.
At OKP, our approach is to actively engage the investment community by providing the latest information on corporate developments to help investors and other stakeholders in making well-informed investment decisions. We believe that this transparency contributes greatly towards a good understanding of the Group and its activities, as well as allow the investing community to appraise our performance.
Our representatives took part in SID Directors Virtual Conference 2020 with the theme Living in a Covid-19 World: A Singapore Perspective, which was held on 25-26 August 2020.
Investor Relations Policy
We have a clear IR policy, which is to ensure objective, transparent and principled business dealings with all our stakeholders. We make sure that we release relevant and material information according to these basic principles and in accordance with the SGX's rules. We provide shareholders and other parties in the financial markets concurrently with the same and concurrent information about matters that may influence the movement of our share price.
The Group has won numerous awards and accolades over the years, which affirm its IR efforts and dedication to good corporate governance. These accolades include the following:
- 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 several factors. These include our financial position, results of operations, capital needs, expansion plans, and what our Board of Directors deems appropriate. The Group has a dividend payout of 65.4% in 2020.
In today's demanding investment climate with calls for better corporate governance, we recognise the importance of engaging and communicating efficiently with all our stakeholders. However, with the restrictions imposed by the ongoing Covid-19 pandemic, physical meetings have been replaced by virtual connections. We seek to promote regular two-way investor communication by utilising various touchpoints with existing and potential investors, financial analysts and the media. These touchpoints include group briefings to analysts, media and investors; one-to-one meetings with shareholders and potential investors; annual general meetings, annual reports, and corporate announcements and online communication via the investor relations section of our corporate website.
More details of our activities are as follows:
Annual General Meeting
The annual general meeting (AGM), which is held every April, is a key avenue for OKP to interact with investors. Depending on the coronavirus pandemic situation, the AGM may be held virtually.
Besides offering an opportunity for investors to clarify any issue, the AGM also allows the Board of Directors and senior management team to brief shareholders on the company's latest developments. The AGM also offers an opportunity 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 available to answer questions from shareholders relating to the past, current and future directions of the Group's business, explain decisions made and address all concerns raised. Shareholders may also submit written questions relating to the statutory audit report and we will respond in an appropriate manner to their questions.
Announcements Of Corporate Developments
As an organisation which strives for clear, open and accurate disclosure to assist investors in making informed decisions on investments, we make it a priority to issue timely announcements on new contracts, strategic developments, financial results and other significant information through the SGXNet website, press releases, email alerts and our investor-friendly website.
Our investor relations website is a key channel through which we disseminate our news to the investment community. It is a resource for corporate, financial and stock information, and announcements of significant business developments. The website also houses our quarterly results and annual reports. Since 2003, it has featured webcasts comprising videos of full-year results messages as well as presentation slides, thus enabling those who could not attend the AGMs to be kept well informed of our latest financial and operational performance. All our announcements are posted promptly on our website, following its release to the SGX to ensure fair, equal and immediate dissemination of information. In this way, all shareholders and investors can keep abreast of our latest business developments speedily and efficiently.
Analyst And Media Briefings
Due to the Covid-19 coronavirus pandemic, face-toface meetings have been replaced by virtual meetings. During the release of our quarterly results, the senior management team is available to meet with analysts to answer their questions and address any issue. Outside of the financial results announcement periods, where necessary and appropriate, the senior management team will also meet analysts and fund managers, to enable them to have greater insights into OKP's operations.
Where appropriate during this restricted period and when opportunities arise, we also give media interviews to provide shareholders and the public with a better understanding of our business and management's direction.
News about OKP have been published 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. One of the articles included "High steel prices could hit construction industry" (The Business Times, 22 February 2021).
Our annual report is a significant communication tool for stakeholders and other interested parties. Therefore, we give special attention to ensure that the publication gives an accurate and complete view 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 uploaded on SGXNet and the company's website at least 14 working days before the meeting. Our top-quality efforts have 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 an important and invaluable tool today to communicate to all our stakeholders. Thus, we take full advantage of technology by conducting an annual webcast to communicate with our investors, taking questions online via an Online Management Question-and-Answer forum with investors through Shareinvestor.com.
Communicating online has gained greater importance
as the coronavirus pandemic has imposed restrictions
on people movement. Through this two-way platform,
all shareholders and other interested parties will be able
to email their feedback and queries to our management
and be assured of an apt response. We also update our
website regularly to provide the latest information on
our operations and corporate developments.