Qualified Opinion on the Audited Financial Statements for the Financial Year Ended 30 September 2025

Mar 16, 2026 at 12:31 AM UTC · Issued by Keong Hong Holdings Limited

KEONG HONG HOLDINGS LIMITED

(Incorporated in the Republic of Singapore) (UEN: 200807303W)

QUALIFIED OPINION ON THE AUDITED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2025

Pursuant to Rule 704(5) of the Listing Manual of the Singapore Exchange Securities Trading Limited (the "SGX-ST"), the board of directors (the "Board") of Keong Hong Holdings Limited (the "Company" and together with its subsidiaries, the "Group") wishes to announce that its independent auditor, Forvis Mazars LLP ("Auditors"), has included a qualified opinion ("Qualified Opinion") in their Independent Auditors' Report dated 13 March 2026 (the "Independent Auditors' Report") in relation to the audited financial statements of the Group for the financial year ended 30 September 2025 (the "FY2025 Financial Statements").

A copy of the Independent Auditors' Report is attached to this announcement for reference.

An extract of the basis for Qualified Opinion in the Independent Auditor's Report is set out below:

Basis for Qualified Opinion

During the financial year ended 30 September 2024, with reference to SFRS(I) 5 Non-current Assets Held for Sale and Discontinued Operations, the investment in Katong Holdings Pte Ltd ("KHPL") was reclassified from an associate to be presented as non-current asset held for sale in the statement of financial position, at a carrying amount of S$34,117,000. Prior to the reclassification to non-current asset held for sale, the Group recorded share of losses from the investment in KHPL of S$2,299,000 in the statement of profit or loss and other comprehensive income for the financial year ended 30 September 2024. On 30 June 2025 ("the completion date of disposal"), the Group completed the disposal of its entire interest in KHPL for total consideration of S$34,500,000 and recognised a gain on disposal of S$383,000 in the consolidated statement of profit or loss and other comprehensive income for the financial year ended 30 September 2025, being the difference between the consideration of S$34,500,000 and the carrying amount of the non-current asset held for sale of S$34,117,000.

During the course of our audit of the financial year ended 30 September 2024 and 2025, we were unable to obtain sufficient appropriate audit evidence, including meeting minutes and resolutions as well as KHPL's financial information, to determine appropriateness of the classification of KHPL as an associate and hence the appropriateness of the share of losses from the investment in KHPL recognised during the financial year ended 30 September 2024 and related disclosures. We were therefore also unable to assess the appropriateness of the carrying amount of KHPL presented as non-current asset held for sale as of 30 September 2024 as well as the completion date of disposal. Accordingly, we are also unable to determine whether the gain on disposal of the investment in KHPL recognised during the financial year ended 30 September 2025 is appropriately stated.

Should adjustments be made to the carrying amount of the non-current asset held for sale and/or the share of results of the investments in the respective financial years, corresponding and consequential adjustments would need to be made to the corresponding financial line items in the affected financial years.

We conducted our audit in accordance with Singapore Standards on Auditing ("SSAs"). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Group in accordance with the Accounting and Corporate Regulatory Authority ("ACRA") Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities (the "ACRA code") together with the ethical requirements that are relevant to our audit of the financial statements in Singapore, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ACRA code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.

The Company understands that this qualification for the financial year ended 30 September 2025 solely arises from the prior year qualification and as the prior year balances will no longer form part of the Group's financial statements, it would no longer be an audit issue going forward.

By Order of the Board Xu Quanqiang

Executive Director and Interim Chief Executive Officer

14 March 2026

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KEONG HONG HOLDINGS LIMITED Report on the Audit of Financial Statements

Qualified Opinion

We have audited the financial statements of Keong Hong Holdings Limited (the "Company") and its subsidiaries (the "Group"), which comprise the consolidated statement of financial position of the Group and the statement of financial position of the Company as at 30 September 2025, and the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity of the Group and the statement of changes in equity of the Company, and consolidated statement of cash flows of the Group for the financial year then ended, and notes to the financial statements, including a summary of material accounting policy information.

In our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion section of our report, the accompanying financial statements are properly drawn up in accordance with the provisions of the Companies Act 1967 (the "Act") and Singapore Financial Reporting Standards (International) ("SFRS(I)s") so as to give a true and fair view of the financial position of the Group and of the Company as at 30 September 2025 and of the financial performance, changes in equity and cash flows of the Group and changes in equity of the Company for the year ended on that date.

Basis for Qualified Opinion

During the financial year ended 30 September 2024, with reference to SFRS(I) 5 Non-current Assets Held for Sale and Discontinued Operations, the investment in Katong Holdings Pte Ltd ("KHPL") was reclassified from an associate to be presented as non-current asset held for sale in the statement of financial position, at a carrying amount of S$34,117,000. Prior to the reclassification to non-current asset held for sale, the Group recorded share of losses from the investment in KHPL of S$2,299,000 in the consolidated statement of profit or loss and other comprehensive income for the financial year ended 30 September 2024. On 30 June 2025 ("the completion date of disposal") , the Group completed the disposal of its entire interest in KHPL for total consideration of S$34,500,000 and recognised a gain on disposal of S$383,000 in the consolidated statement of profit or loss and other comprehensive income for the financial year ended 30 September 2025, being the difference between the consideration of S$34,500,000 and the carrying amount of the non-current asset held for sale of S$34,117,000.

During the course of our audit of the financial year ended 30 September 2024 and 2025, we were unable to obtain sufficient appropriate audit evidence, including meeting minutes and resolutions as well as KHPL's financial information, to determine appropriateness of the classification of KHPL as an associate and hence the appropriateness of the share of results from the investment in KHPL recognised during the financial year ended 30 September 2024 and related disclosures. We were therefore also unable to assess the appropriateness of the carrying amount of KHPL presented as non-current asset held for sale as of 30 September 2024 as well as the completion date of disposal. Accordingly, we are also unable to determine whether the gain on disposal of the investment in KHPL recognised during the financial year ended 30 September 2025 is appropriately stated.

7 INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KEONG HONG HOLDINGS LIMITED Report on the Audit of Financial Statements (Continued)

Basis for Qualified Opinion (Continued)

We conducted our audit in accordance with Singapore Standards on Auditing ("SSAs"). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Group in accordance with the Accounting and Corporate Regulatory Authority ("ACRA") Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities (the "ACRA code"), as applicable to audits of financial statements of public interest entities, together with the ethical requirements that are relevant to audits of the financial statements of public interest entities in Singapore. We have also fulfilled our other ethical responsibilities in accordance with these requirements and the ACRA code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis of our qualified opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current year. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Basis for Qualified Opinion section above, we have determined the matter described below to be the key audit matters to be communicated in our qualified report.

Key audit matter 1

Audit response

Accounting for construction contracts (Refer to Notes 3.2, 4 and 28 to the financial statements)

Revenue from construction contracts amounted to approximately

$182,368,000 and represented 100% of the Group's revenue for the financial year ended 30 September 2025. As at year end, the Group recorded a provision $1,175,000 for onerous contracts, reflecting unavoidable costs that the economic benefits expected to be received. This provision is expected to be utilised over the remaining contract periods.

The Group's core businesses are general and building contracting. Revenue from construction contracts is recognised over time using a cost-based input method, measured by reference to the proportion of costs incurred to date relative to the estimated total contract contract costs, excluding costs that do not contribute to satisfying performance obligations.

Significant judgement is required in estimating the total contract costs, expected variations or claims recognised as contract revenue, provisions for liquidated damages, and the impact of contract modifications. These judgements affect the measure of progress and the resulting revenue and profit margins, with revisions to estimates recognised in profit or loss when they become known.

A provision for onerous contracts is recognised when the expected benefits from a contract are lower than the unavoidable costs of fulfilling the Group's obligations. This assessment involves additional judgement, including estimating the remaining costs to complete and the expected economic benefits.

Given the financial significance of construction contract revenue and the level of judgement involved in the these estimates, this area has been identified as a key audit matter.

We performed the following audit procedures, amongst others:

Understood and evaluated the Group's design and implementation of its system of internal controls relating to revenue recognition, with a focus on key controls;
Agreed the variation orders sum to the approved variation orders by customers;
Assessed provisions for liquidated damages and, where applicable, whether they were appropriately offset against contract revenue;
Tested the project costs on a sample basis by checking that the costs are properly allocated to their respective contracts and that these costs are directly attributable to costs supported by suppliers' invoices or other supporting documents;
Reviewed management's estimated costs-to-complete for significant ongoing contracts by assessing the reasonableness of key cost components, including subcontractors' costs, estimated labour hours and rates, materials, and overheads;
Evaluated the reasonableness of management's budgets by comparing budgeted costs against actual costs of completed projects;
Obtained an understanding of the Group's consideration of SFRS(I) 1-37 Provisions, Contingent Liabilities and Contingent Assets ("SFRS(I) 1-37") in their application of the corresponding requirements of the standard and assess the appropriateness thereof;
Checked the arithmetical accuracy of the revenue recognised based on the input method computations; and
Reviewed the completeness and appropriateness of corresponding disclosures made in the financial statements.

8 INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KEONG HONG HOLDINGS LIMITED Report on the Audit of Financial Statements (Continued)

Key Audit Matters (Continued)

Key audit matter 2

Audit response

Impairment of investment in associate - Pristine Islands Investment Pte. Ltd. and its subsidiary ("PIIPL Group") (Refer to Notes 3.2 and 13 to the financial statements)

As at 30 September 2025, the Group's investment in its associate, PIIPL Group, comprises equity interests and non-trade amounts due from PIIPL Group. PIIPL Group mainly focuses on hospitality operations and related businesses.

At year end, the Group assessed the non-trade amounts due from PIIPL Group for expected credit losses using the general approach and recognised a 12-month ECL loss allowance of $400,000 to reflect the credit risk exposure.

During the financial year, management identified indicators of impairment in the associate and carried out an impairment assessment to determine whether an impairment loss was required. The recoverable amount was determined using a fair value less costs of disposal approach, for which management engaged an external valuation expert. This assessment involved significant judgement in valuing PIIPL Group's business and estimating disposal costs. No impairment loss was recognised as the recoverable amount exceeded the carrying amount.

We considered this area to be a key audit matter due to the significant management judgements and estimates involved in assessing the recoverable amount of the PIIPL Group.

We performed the following audit procedures, amongst others:

Evaluated management's assessment of whether the credit risk of the non-trade amount due from an associate had increased significantly;
Reviewed the adequacy of ECL allowance at year end, including assessing whether management's approach was consistent with SFRS(I) 9 Financial Instruments ("SFRS(I) 9") requirements;
Evaluated management's assessment of impairment indicators relating to the investment the associate;
Assessed the reasonableness of key assumptions used in determining the fair value less costs of disposal, including range adjustments and marketability discount, with the assistance of our internal valuation specialist, and obtained management representation on the accuracy and completeness of financial data; and
Reviewed the adequacy and appropriateness of the related disclosures made in the financial statements.

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