About Chairman's Message
DEAR SHAREHOLDERS
I am pleased to present to you the Annual Report of HGH Holdings Ltd (the “Company” or “HGH”) and its subsidiaries (collectively the “Group”) for the financial year ended 31 December 2025 (‘FY2025”).
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 4. Poh Huat Heng Corporation Pte. Ltd. (“PHH”) for underground cable installation and road reinstatement services.
In FY2025, we held a steady ship and focused on our businesses, remaining agile and resilient. We completed our new ready-mixed plant in first quarter of FY2025, realising better economies of scale and enlarging our production capacity in second half of 2025 (“2H2025”). We also recommenced certain projects from the provision of underground cable installations and road reinstatement segment. In addition, we revised up our rental rates in our EMS business in 2H2025.
Overall, these developments boosted our Group revenue, more than doubling our top line from S$21.32 million in f inancial year ended 31 December 2024 (“FY2024”) to S$54.64 million in FY2025. While certain costs and expenses increased over the year, we were able to manage them effectively.
On a segmental basis, our ready-mix concrete business and our underground cable installation and road reinstatement business were the key drivers of our revenue growth with sales (to external parties) of S$25.79 million and S$16.68 million respectively. Our leading segment, the ready-mix concrete business, contributed 47.2% of Group revenue. Meanwhile, the leasing and service income segment recorded a moderate growth while the precast concrete products segment recorded a slight decline in sales.
These business developments and operational measures ultimately boosted our bottom line, with net profits of S$5.20 million for FY2025, as compared to net losses of S$0.23 million in FY2024.
FINANCIAL REVIEW
Over the year in review, we achieved a robust revenue expansion of S$33.33 million or 156.3% as compared to FY 2024, chalking up revenue of S$54.64 million for FY2025, as compared to S$21.32 million in FY2024.
Cost of sales increased in tandem with increased revenue to S$40.69 million in FY2025, compared to S$15.24 million in FY2024. Gross profit increased to S$13.95 million for the year in review, compared to S$6.08 million in FY2024.
We managed our costs and expenses effectively and recorded a net profit of S$5.20 million, a turnaround from net loss of S$0.23 million registered in FY2024. On a per share basis, the Group generated earnings per share of S$0.29 cents in FY2025 as compared to a loss of S$0.01 cents per share in FY2024.
Segmental Performance
Our largest segment in terms of revenue contribution was our ready-mix concrete products segment (PC segment), with sales (to external parties) of S$25.79 million in FY2025. This was mainly driven by the completion and operation of our new ready-mix concrete plant in the first quarter of FY2025. On a year-on-year basis, we recorded a strong revenue expansion from S$5.29 million in FY2024.
This was followed by our underground cable installation and road reinstatement segment (PHH), with sales (to external parties) of S$16.68 million, compared with FY2024 revenue of S$3.75 million.
Our leasing and income segment (EMS and Germaxco) came in third, with sales (to external parties) of S$10.92 million. This compares with S$10.12 million booked for FY2024.
The precast concrete segment was the smallest contributor to Group sales in FY2025 with external party sales of S$1.26 million. This was a reduction compared with S$2.16 million for the previous year.
BUSINESS OUTLOOK 2026
As we enter the new year, we remain mindful of the heightened volatility in the global economy and its impact on the open economy of Singapore, where we mainly operate. Trade tensions between the US and China and other countries may weigh on the world economy while geo-political tensions might elevate raw material prices and dampen business and investment sentiment.
According to Singapore’s Ministry of Trade and Industry (MTI), the global economic outlook has upside and downside risks going into 2026. On balance though, it believes the prospects for Singapore in 2026 have improved, revising upwards its economic forecast for Singapore from 1-3% to 2-4% in a February 2026 report (“Report”).
According to the Report, it also expected that the construction sector to expand steadily “due to expansions in both public residential building and civil engineering works. Also, the new private residential launches will support the activities of developers in the real estate sector in the year ahead.”
Based on a media release from the Building and Construction Authority (BCA) in January 2026, Singapore’s Built Environment sector is set to maintain its momentum in 2026, with BCA projecting total construction demand to remain steady at S$47-53 billion in nominal terms for 2026, similar to 2025.
BCA notes that the resilient construction demand expected in 2026 will be supported by the expected awarding of additional construction packages for Changi Terminal 5 (T5) Development, for Marina Bay Sands Integrated Resort (MBS IR2) expansion, New Tengah General & Community Hospital, Downtown Line 2 Extension and Thomson-East Coast Line Extension.
Building on our strengths and established reputation, we will seek further opportunities, both in the public and private sector, in the year ahead.
We also plan to further integrate our new pre-mix concrete plant into our operations and business offerings, tapping on Group-wide synergies to grow. Indeed, the Group’s core ready-mix concrete division hopes to continue its strong momentum and secure opportunities in the expanding construction sector.
The new order book from the cable installation contracts is expected to increase business activity in 2026. Coupled with consistent income from the contract leasing and services segment, we remain optimistic of the Group’s performance for the year ahead.
CORPORATE GOVERNANCE
HGH remains steadfast in its commitment to maintaining the highest standards of corporate governance in all aspects of our operations and business practices. We believe this commitment is fundamental to our long-term success and in upholding the trust of our stakeholders as we navigate the future together. More information on our corporate governance policies can be found in the Corporate Governance Report within this Annual Report.
APPRECIATION
The past year has been challenging but we have risen to the challenges with agility and resilience. I am confident that we will continue to tap into our organisational strengths and tackle the year ahead with vigour and skill.
At this juncture, I would like to extend my sincere gratitude to my fellow Board members for their wisdom and guidance.
I would also like to express my deep appreciation to our management team and staff for their hard work, determination and commitment.
Finally, on behalf of the Board, I would like to thank our valued customers, vendors, business partners, and shareholders for their continued support and trust.
We believe we have the mettle and experience to navigate the year ahead and look forward to working with our partners, staff and stakeholders to drive sustainable growth.
NG CHUAN HENG
Executive Chairman
