Chairman’s Message

About Chairman's Message

DEAR SHAREHOLDERS

It is my pleasure 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 2021 (“FY2021”).

Currently, the Group is principally engaged in the following businesses:

  1. Premium Concrete Ltd. (“PC”) for Supply and manufacturing of ready-mix concrete;
  2. W&P Precast Pte. Ltd. (“WPP”) and W & P Precast Sdn. (“WPP(M)”) for Supply of precast concrete products;
  3. Engineering Manufacturing Services (S) Ltd. (“EMS”) and Germaxco Pte. Ltd. (“Germaxco”) for Leasing and service income; and
  4. Poh Huat Heng Corporation Ltd. (“PHH”) for Underground cable installation and road reinstatement services.

Throughout the pandemic, our leasing and service income business continues to be the largest and most stable contributor to the Group’s revenue, as it is less affected by restrictions on manpower and operation capacity as required by safe distancing measures to contain the spread of COVID-19.

BUSINESS OUTLOOK

The COVID-19 pandemic continues to pose an ongoing challenge to businesses around the world, pushing countries to remain on their toes as they respond to each wave of new variants and the rise and fall in infection numbers, requiring businesses to adapt to volatile situations. These disruptions to business operations and the restriction on workers’ movements have resulted in labour shortages in both our Singapore and Malaysia operations, posing a challenge to our efforts to recover our operations and performance to return towards pre-pandemic levels.

While our businesses have reported an improvement in performance as compared to the previous reporting period (FY2020), the Group expects a slow recovery in its business activities as the outlook remains uncertain against the backdrop of labour shortage and sub-optimal operational efficiency due to safe distancing restrictions, resulting in a challenging business environment.

Despite the aforementioned challenges, we also expect a consistent flow of revenue contribution from EMS for the following 12 months, mainly arising from contracted leasing/service income. We will continue to remain vigilant in managing our operation costs and activities to optimise them for the evolving situation, and we continue to seek out opportunities to further diversify our businesses and revenue streams to pull through such times of ongoing uncertainty.

FINANCIAL REVIEW

The Group reported a total revenue of approximately S$20.07 million, an increase of 71.6% or S$8.37 million from S$11.70 million in financial year ended 31 December 2020 (“FY2020”). The increase was mainly attributable to the overall increase in revenue generated in all business segments, with the most significant increase in revenue contributions from ready-mix concrete products and provision of underground cable installation and road reinstatement services, by approximately S$4.61 million and S$2.71 million respectively. Revenue contributions from leasing and service income remain relatively stable and continue to be the main contributor to our total revenue.

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 FY2021.

CORPORATE GOVERNANCE

Integral to the Group’s culture and business practices, we continue to be committed to maintaining high standards of corporate governance. For the Group’s key corporate governance policies, please refer to the Corporate Governance Report on pages 12 to 40 of this Annual Report.

APPRECIATION

I would like to take this opportunity to thank my fellow Directors for their invaluable advice and management of the Group in the face of the continued challenges throughout FY2021. To all our key management personnel and staff members, I sincerely appreciate the steadfast commitment and dedication to your work for the Group in spite of the difficulties we have faced. Your staunch support is what continues to drive the Group’s business further in sustaining and growing value.

Finally, on behalf of the Board, I would like to thank all of our shareholders, customers, vendors, business partners and stakeholders for your continued support and trust in us throughout these times of uncertainty. We remain vigilant in order to respond appropriately and effectively to the challenges ahead, and continue building our resilience in the upcoming financial year.

We look forward to journeying alongside you through 2022.

NG CHUAN HENG
Executive Chairman