About Chairman's Message
I am pleased to present to you an overview of the financial performance of HGH Holdings Ltd. (“the “Company”) and its subsidiaries (collectively, the “Group”) for the financial year ended 31 December 2022 (“FY2022”).
Currently, the Group is principally engaged in the following businesses:
- Premium Concrete Pte. Ltd. (“PC”) for supply and manufacturing of ready-mix concrete.
- W&P Precast Pte. Ltd. (“WPP”) and W & P Precast Sdn. Bhd. (“WPP(M)”) for supply of precast concrete products
- Engineering Manufacturing Services (S) Pte. Ltd. (“EMS”) and Germaxco Pte. Ltd. (“Germaxco”) for leasing and service income; and
- Poh Huat Heng Corporation Pte. Ltd. (“PHH”) for underground cable installation and road reinstatement services
For the year under review, the supply and manufacturing of ready-mix concrete products segment overtook our leasing and service income business to become the largest contributor to Group revenue. While the latter largely maintained its performance from FY2021, the former which supplies ready-mix concrete in Singapore to various customers in the construction and civil engineering sector grew by about 40%.
In the earlier part of 2022, the COVID-19 pandemic appeared more manageable with the global economy continuing to gear for recovery. However, that momentum was curtailed by the Russia-Ukraine war followed by further virus outbreaks. These challenges translated to logistic and supply chain disruptions, fuel, material, food, and commodity price hikes, as well as higher global inflation and interest rate hikes.
Even as the COVID-19 pandemic entered an endemic stage, the Group faced challenges as there was a severe shortage of foreign labour for our civil engineering and construction segments (PHH, WPP and PC). Furthermore, the cost of construction materials continued to escalate due to supply chain disruptions and prolonged war between Russia and Ukraine. These external factors narrowed our margins as we sought to manage costs while upholding service and product quality.
Despite the aforementioned challenges, we continue to expect a consistent flow of revenue contribution from EMS for the next 12 months, mainly arising from contracted leasing/service income. In light of the challenging economic situation, the Group will remain vigilant as we manage our operating costs and actively seek out new business opportunities and potential collaborations to strengthen our growth prospects in the long term.
For FY2022, the Group reported a total revenue of approximately S$21.59 million, an increase of 7.6% or S$1.52 million from S$20.07 million recorded in the financial year ended 31 December 2021 (“FY2021”). The increase was mainly attributable to the substantial increase in revenue generated from the supply and manufacturing of ready-mix concrete products segment.
Please refer to the Operations Review and Financial Highlights on pages 4 to 7 of this Annual Report for further information and details on the Group’s financial performance and position in FY2022.
HGH remains committed to maintaining high standards of corporate governance to inform the Group’s culture and business practices. For more details on the Group’s key corporate governance policies, please refer to the Corporate Governance Report on pages 12 to 42 of this Annual Report.
FY2022 had proven eventful, and I am thankful for the continued advice from my fellow Board members in charting the best course through the year. I would also like to thank our key management and staff for their continued dedication which enabled the Group to forge ahead.
On behalf of the Board, I would also like to express my appreciation to our customers, vendors, business partners and shareholders for their faith and support. We look forward to working closely with all stakeholders in unlocking greater sustainable value in the year ahead.
NG CHUAN HENG