Hong Fok Corporation FY2025: Revenue S$98.3M, Total Investment Properties S$3.52B, International Building Units Acquired, 14 New Human Capital Profiles

Hong Fok Corporation Limited (SGX: H30) released its FY2025 Annual Report covering the year ended 31 December 2025. Revenue dipped 5.7% to S$98.3M with a modest recovery in profitability on higher fair value gains, while total investment properties grew to S$3.52B — a 0.6% increase. The Group acquired five units in International Building and the portfolio continued to benefit from BCA Green Mark upgrades at The Concourse.

• ▸Revenue: S$98.3M (FY2024: S$104.3M; -5.7%) — higher rental income from investment properties was offset by lower residential sales from Concourse Skyline development units.
• ▸Profit attributable to owners: S$28.5M (FY2024: S$23.7M; +20.1%) — improvement driven by higher fair value gains on investment properties.
• ▸Fair value gain on investment properties: ~S$16M (FY2024: ~S$12M) — gain on revaluation reflected in profit before tax of S$34.0M (FY2024: S$15.6M).
• ▸Total investment properties: S$3,517.6M (FY2024: S$3,497.5M; +0.6%) — Freehold S$1,395.5M / Leasehold S$2,122.0M.
• ▸Total assets: S$3,671.8M (FY2024: S$3,650.3M). Total equity: S$2,924.2M (FY2024: S$2,930.6M).
• ▸NAV per share: S$3.65 (as at 31 Dec 2025). Net current assets ~S$86M; cash ~S$31M.
• ▸Dividend: S$6.4M (unchanged from FY2024).
• ▸Geography: SG revenue S$90.9M / HK revenue S$7.4M.

• ▸International Building Acquisition (Feb 2025):
• ▸The Group completed the acquisition of five additional strata units in International Building (360 Orchard Road) for S$27.8M cash consideration plus ~S$1.8M capitalised acquisition costs. GFA increased from 14,997sqm to 15,159sqm. This deepens the Group's freehold Orchard Road commercial exposure and reflects confidence in the long-term value of its core Singapore assets.

• ▸The Concourse — Green Upgrades:
• ▸The Concourse received BCA Green Mark (Platinum) re-certification and also obtained the Super Low Energy (Provisional) Award — an upgrade from the prior certification. The building implemented green energy purchasing and advanced BMS controls. The Group installed EV charging stations at The Concourse, Concourse Skyline and International Building. These sustainability milestones position The Concourse favourably in meeting tenant ESG requirements and any future green financing conditions.

• ▸YOTEL Singapore Operations:
• ▸The 610-room hotel at 366 Orchard Road (30-storey, freehold, managed by third-party operator since 2017 under an ~16yr term) is being actively managed to grow room revenue quality through market segmentation. The Group described itself as cautiously optimistic on the SG hotel outlook for FY2026.

• ▸Concourse Skyline Residential — Sales Ongoing:
• ▸The Group continued to record revenue from residential unit sales in Concourse Skyline in FY2025. The development property pool has reduced to 38 units (100% Group interest, GFA 7,221sqm) following reclassification of 8 units (49% interest, GFA 710sqm) to investment property status. Lower interest rates are expected to support continued sales momentum in FY2026.

• ▸Hong Kong Portfolio — Stable:
• ▸HK properties (Magazine Gap Towers, Magazine Heights, THE ICON roof/parking — all 49% owned via Hong Fok Land International Ltd) performed steadily. Translation differences of -S$28.2M impacted total investment property values (partially offset by S$16M SG fair value gains), reflecting HKD/SGD movements. HK non-current assets: S$463.8M (FY2024: S$491.8M).

PROPERTY PORTFOLIO SNAPSHOT (31 DEC 2025)

• ▸Singapore — Freehold Investment Properties (100% owned):
• ▸• International Building, 360 Orchard Road — 12-storey commercial; offices/shops/restaurants; GFA 15,159sqm (increased from 14,997sqm after Feb 2025 acquisition)
• ▸• YOTEL Singapore Orchard Road, 366 Orchard Road — 30-storey; 610 rooms; GFA 15,744sqm
• ▸• 362 & 364 Orchard Road — Single-storey retail block; GFA 279sqm

• ▸Singapore — Leasehold Investment Properties (99yr from Mar 2008, 100% owned):
• ▸• The Concourse, 300 Beach Road — 41-storey commercial/office tower; 43 strata units; GFA 60,164sqm; BCA Green Mark Platinum + Super Low Energy (Provisional)
• ▸• Concourse Skyline (Retail) — 9 retail strata units; GFA 608sqm

• ▸Singapore — Development Property (for sale):
• ▸• Concourse Skyline (Residential) — 38 units, GFA 7,221sqm (100% interest); 8 units reclassified to investment property (49% interest, GFA 710sqm)

• ▸Hong Kong — 49% owned via HFLIL:
• ▸• Magazine Gap Towers, 15 Magazine Gap Road — 14-storey residential; GFA 5,128sqm
• ▸• Magazine Heights, 17 Magazine Gap Road — 14-storey residential; GFA 5,574sqm
• ▸• The ICON (Roof & Parking), 38 Conduit Road — Upper roof and parking; GFA 47sqm; 999yr lease

• ▸Board remuneration — all disclosed in exact terms:
• ▸• Cheong Sim Eng (Joint CEO, SG operations): S$3,758,441 FY2025 (FY2024: S$5,156,795; -27.1%) — 64% fixed / 30% bonus / 6% other. Highest-paid director.
• ▸• Cheong Pin Chuan (Joint CEO, HK operations): S$3,405,716 FY2025 (FY2024: S$4,747,167; -28.3%) — 44% fixed / 39% bonus / 17% other.
• ▸• Cheong Hooi Kheng (COO): S$2,456,421 FY2025 (FY2024: S$3,560,106; -31.0%) — 57% fixed / 36% bonus / 7% other.
• ▸• Chan Pengee, Adrian (Non-Exec Chairman): S$147,000 fees (FY2024: S$157,161).
• ▸• Kwik Sam Aik (Lead ID): S$114,000 fees (FY2024: S$115,640).
• ▸• Chong Weng Hoe (ID): S$119,000 fees (FY2024: S$119,000; unchanged).
• ▸• Tan Kok Kwee (ID, appointed 1 Feb 2024): S$106,000 FY2025 (FY2024: S$85,922 partial year).

The across-the-board decline in executive pay reflects the profit-sharing structure: variable pay is based on a 3-year rolling average of profit attributable to owners. FY2025 average (FY2025+FY2024+FY2023) is significantly lower than the 3-year average underlying the FY2024 bonuses (FY2024+FY2023+FY2022), given FY2022's S$220M exceptional year has rolled out.

• ▸KMP bands (top 7, aggregate S$3,655,000 vs FY2024 S$4,004,000; -8.7%):
• ▸• Cheong Puay Kheng (SVP Corporate Services): S$1,000,001–S$1,249,999 (unchanged)
• ▸• Cheong Tze Hian, Howard (Dir Project Dev, HFLIL): S$500,001–S$749,999 (down from S$750K–S$1M FY2024)
• ▸• Cheong Tze Hong, Marc (Alt Dir / Dir Finance, HFLIL): S$500,001–S$749,999 (down from S$750K–S$1M FY2024)
• ▸• Koh Chay Tiang (VP Finance / Company Secretary): S$250,001–S$499,999 (unchanged)
• ▸• Ng Sai Kian (VP Property Management): S$250,001–S$499,999 (unchanged)
• ▸• Tsui Yeung Kun (Dir Business Dev, HFLIL): S$250,001–S$499,999 (unchanged)
• ▸• Low Charmaine (VP Marketing): Below S$250,000 (unchanged)

Hong Fok is a concentrated, family-controlled property holding company with S$3.5B in investment properties — the vast majority of the Group's asset base. Operating performance is steady: rental income is growing, the Concourse Skyline residential inventory is being worked down, and The Concourse continues to improve its sustainability credentials. The headline revenue dip is largely an accounting artefact of lower residential sales recognition, not a deterioration in the investment property income base. The International Building bolt-on acquisition is modest but signals confidence in core Orchard Road freehold assets. Executive pay is structurally tied to the 3-year profit average, so the sharp FY2025 declines (-27% to -31%) simply reflect the normalisation of FY2022's exceptional S$220M profit rolling out of the calculation window.