Dear Shareholders,
On behalf of the Board of Directors, we are pleased to present to you the annual report of Sin Heng Heavy Machinery Limited and its subsidiaries (the "Group"), for the financial year ended 31 December 2025 ("FY2025").
Year in Review
In 2025, the Group continued to operate in a challenging and uncertain global macroeconomic environment during the year, which resulted in a decline in its overall performance. The global economy faced significant headwinds, including intensifying geopolitical tensions, supply chain disruptions, and the additional pressures arising from the uncertain trade policies. Against this difficult backdrop, the Group has recorded total revenue of S$44.1 million and gross profit of S$14.7 million, representing a year-on-year decrease of 12.3% and 12.0%, respectively. Profit for the year was S$5.1 million, a decrease of 18.5% as compared to FY2024.
Outlook
According to the media released by Building and Construction Authority ("BCA") dated 22 January 2026, the projected construction demand is estimated to be between S$47 billion and S$53 billion in nominal terms and between S$43 billion and S$46 billion in real terms. This demand will be supported by the major infrastructure and development projects such as Changi Airport Terminal 5, Marina Bay Sands Integrated Resort expansion, new hospitals, and MRT line extensions, alongside continued housing and institutional developments.
While we remain cautiously optimistic about the outlook of Singapore's construction market, the broader operating landscape continues to be challenging. Escalating geopolitical tensions, including the recent conflict in Middle East, have heightened concerns over potential disruptions to global energy supply, particularly the closure of the Strait of Hormuz. Such developments have led to rising oil prices, which may in turn increase material costs across the supply chain.
In addition, interest rate volatility and fluctuating exchange rates continue to create uncertainty for the business environment. In response, the Group will continue to prioritise disciplined cash management and cost control while exploring new growth opportunities that align with its long-term strategic objectives.
Dividend
For FY2025, the Board of Directors have proposed a final dividend of 5.0 Singapore cents per ordinary share as a gesture of gratitude for the unwavering loyalty shown by our shareholders to Sin Heng. The proposed final dividend comprises a ordinary dividend of 1.0 Singapore cents and a special dividend of 4.0 Singapore cents respectively, totalling S$5.4 million, subject to shareholders' approval at the forthcoming Annual General Meeting.
In addition, the Company had also paid an interim dividend of 5.0 Singapore cents per ordinary share. Including the proposed final dividend, the total dividends for FY2025 will amount to 10.0 Singapore cents per ordinary share.
Acknowledgement and Appreciation
On behalf of the Board and Management, we extend our sincere appreciation to our dedicated employees for their unwavering commitment, resilience, and hard work in navigating a challenging business environment. Their professionalism and collective efforts have been instrumental in supporting Sin Heng's continued growth and resilience. With their ongoing dedication, we remain confident in achieving greater milestones in the years ahead.
We would also like to express our heartfelt gratitude to our valued customers, suppliers, and business partners for their continued trust and support. Their confidence in Sin Heng has been vital to our success. As we move forward, we look forward to strengthening these relationships and fostering deeper collaborations to drive sustainable growth together.
Leong Wing KongIndependent Chairman |
Tan Ah LyeExecutive Director & CEO |