Operations Review
BUSINESS REVIEW
(i) Construction
Completed Construction Projects
During the year under review, the Group completed two construction projects, which were secured since December 2019.
List of Completed Construction Project
Ongoing Construction Projects
In 2025, the Group continued to execute 12 ongoing construction projects, which had been secured since February 2015. All are public sector projects.
During the year, the Group was awarded two new projects by the Land Transport Authority (LTA) and JTC Corporation (JTC). These new construction projects were the Design and Construction of Cycling Paths for East Region, secured in May 2025; and the other for the Construction of Infrastructure Works at Cleantech Loop, secured in October 2025.
The construction segment remained the main revenue driver for the Group, accounting for 69.1 per cent or $154.4 million of the total revenue in FY2025.
List of Ongoing Construction Projects
(ii) Maintenance
Completed Maintenance Projects
During the year under review, the Group completed one maintenance project, which was secured since May 2020.
Besides providing a steady and recurring income stream for OKP, our maintenance segment remains a cornerstone of the services provided to our clients. This segment contributed $65.6 million, which constituted 29.4 per cent of OKP's total revenue, in FY2025.
List of Completed Maintenance Projects
Ongoing Maintenance Projects
In 2025, the Group continued the execution of seven ongoing maintenance projects, which are from the public sector.
List of Ongoing Maintenance Projects
(iii) Rental Income
Rental income contributed $3.4 million, or 1.5 per cent of the Group's total revenue for FY2025, compared to $6.1 million in FY2024. The decrease was primarily due to ongoing major renovations at 6-8 Bennett Street, East Perth, and a transition period following tenant departures. These renovations are being carried out in phases and are expected to enhance the property's long-term value, supporting stronger rental returns in the future.
Income from the Group's Singapore investment properties remained stable, providing a reliable stream of recurring revenue. During the year, the Group also entered into an agreement to sell two Singapore properties, 69 and 71 Kampong Bahru Road, demonstrating active portfolio management to optimise the Group's property holdings and enhance financial flexibility.
Overall, the Group's investment property portfolio continues to generate stable income while strategic improvements and prudent divestments reinforce sustainable long-term returns.
Financial Review
Income Statement
Balance Sheet
Our Operating And Financial Review
Our Property Portfolio
Corporate Liquidity And Cash Resources
We maintain a healthy balance sheet and cash flow position which enable us to explore new infrastructure projects and property investments, either here or overseas.
Our Group reported net cash generation of $43.4 million from operating activities in FY2025, marking a decrease of $14.9 million, compared to $58.3 million in FY2024. The decrease was largely attributable to:
- a decrease in net working capital inflow of $25.8
million;
- a decrease in interest received totalling $0.5 million;
and
- an increase in income tax payments of $3.6 million,
which were partially offset by: - an increase in cash generated from operating
activities before working capital changes, amounting
to $15 million,
during FY2025.
Net cash used in investing activities decreased by $4.5 million from $4.4 million in FY2024 to net cash provided by investing activities of $0.1 million in FY2025. The decrease was due mainly to:
- a decrease of $1.6 million in cash used for the
purchase of property, plant and equipment;
- a decrease of $0.8 million in advances extended to an
associated company;
- an increase of $2.4 million in proceeds received from
disposal of other investments at amortised cost,
property, plant and equipment and right-of-use
assets; and
- total proceeds of $1.2 million received from an
associated company relating to capital reduction and
dividend income,
which were partially offset by: - an increase of $0.1 million in cash used for the
purchase of right-of-use assets;
- an increase of $0.2 million in cash used for the
purchase of intangible assets;
- an increase of $0.2 million in structural improvements
that were capitalised to investment properties; and
- a decrease of $1.0 million in repayment of loan from
associated company,
during FY2025.
Net cash used in financing activities increased by $0.5 million, from $11.3 million in FY2024 to $11.8 million in FY2025. The increase was due mainly to: (a) an increase of $3.1 million in dividend disbursements,
which were partially offset by:
- a decrease of $0.1 million in repayment of lease
liabilities;
- a decrease of $0.1 million in principal repayment of
borrowing;
- a decrease of $0.3 million in interest paid;
- an increase of $0.9 million in advance from a noncontrolling shareholder; and
- an increase of $1.2 million in pledged bank deposits,
during FY2025.
Overall, free cash and cash equivalents stood at $155.9 million as at 31 December 2025, marking a notable increase of $31.6 million from $124.3 million as at 31 December 2024. This represents cash reserves of 50.8 cents per share as at 31 December 2025, a marked increase from the 40.5 cents per share recorded as at 31 December 2024 (based on 306,961,494 issued shares).
The lease liabilities of $4.2 million (FY2024: $6.4 million) are secured by way of corporate guarantees issued by the Company and charges over the property, plant and equipment under the leases.
The bank borrowings of $20.9 million (FY2024: $22.0 million) is secured by first legal mortgage over an investment property of the Group, certain bank deposits, the Group's shares in a subsidiary corporation and corporate guarantee of the Company.
Certain bank borrowings were reclassified from noncurrent to current. This was due to (i) the proposed sale of investment properties, where one loan will be repaid upon completion and another is intended to be early settled using the net proceeds, and (ii) a breach of the debt service coverage ratio covenant for the latter loan. Although the covenant requirement has since been waived by the lender for FY2025, it remains subject to specified conditions being fulfilled.
The decrease in debt amount from $30.2 million as at FY2024 to $26.7 million as at FY2025 as a result of repayment of lease labilities and bank borrowings during FY2025.
Value Added Statement
Total value-added created by the Group in FY2025 amounted to $128.3 million (2024: $106.0 million). due to higher profits reported in FY2025.
In FY2025, about $60.2 million or 47.0 per cent of the value-added was paid to employees in the form of salaries and wages. $8.2 million or 6.0 per cent was paid to the government in the form of corporate and property taxes while $8.9 million or 7.0 per cent was paid as dividends and interests to financial institutions. Balance of $49.7 million was retained by the Group for its future growth.
In FY2024, about $52.4 million or 49.0 per cent of the value-added was paid to employees in the form of salaries and wages. $5.6 million or 5.0 per cent was paid to the government in the form of corporate and property taxes while $6.2 million or 6.0 per cent was paid as dividends and interests to financial institutions. Balance of $38.9 million was retained by the Group for its future growth.