Ley Choon Group Holdings Limited on Jul, 24 2026 released a detailed reply to questions from the Securities Investors Association (Singapore) regarding its FY2026 results announced on Jul, 15 2026.
The infrastructure contractor said total staff costs rose 20 % to 52.5 million Singapore dollars, outpacing the 10.3 % increase in revenue. The rise was attributed to a 15 % expansion in headcount for newly awarded projects (about 51 % of the cost increase), higher foreign-worker levies and accommodation expenses (31 %), and wage increments (18 %). Management noted that costs were incurred ahead of revenue recognition because new projects were still in early stages.
Higher subcontracting expenses stemmed mainly from greater work volume by one major subcontractor and temporary labour shortfalls during a surge in contract wins. The company said this reliance has already eased and it does not expect a structural shift in subcontractor bargaining power.
Other cost-of-sales components include materials, direct operational costs, depreciation and insurance. Fuel averaged roughly 3 % of monthly cost of sales in FY2026 and peaked at about 6 % in Mar, 2026 amid geopolitical-driven price volatility.
Ley Choon classified fuel and oil-related price spikes as cyclical, while worker-levy hikes and wage adjustments are considered structural. To safeguard margins, the group is incorporating anticipated cost increases into tender pricing, using bulk-purchase agreements, diversifying suppliers and maintaining a disciplined project-selection approach.
Responding to SGX RegCo’s call for greater transparency, the board is reviewing the adoption of a structured forward-guidance framework; meanwhile, details of the order book and revenue timing continue to be disclosed in financial notes.
On sustainability governance, the company said its Sustainability Committee—led by the CEO and comprising senior executives—sets targets, monitors metrics and reports material issues such as EHS incidents, regulatory compliance and climate-related risks to the board. An independent firm assists with annual enterprise-risk and sustainability reporting reviews, with findings presented to the Audit Committee.