OneApex Limited has disclosed key updates in its response to shareholder queries raised by Securities Investors Association (Singapore) (SIAS) regarding the company’s financial performance in FY2024. The announcements contain critical financial highlights, strategic insights, and governance updates that could influence investor sentiment and the company’s share price.

Key Financial Highlights

The company reported a significant milestone with the sale of 23 units in its Apex Foodworks development, achieving a gross sales value of S\$76.2 million. One unit remains unsold. Additionally, the company completed the sale of Tuas Seatown Dormitory Pte Ltd, an associated entity, contributing to its financial performance.

In the financial services segment, OneApex saw robust growth driven by higher revenue from mortgage referral services and introducer fees.

Dividend Announcement

OneApex has proposed a final dividend of 1.0 Singapore cent per ordinary share and a special dividend of 8.5 Singapore cents per ordinary share. If approved, this will amount to a total payout of S\$8.03 million, accounting for nearly half of the company’s equity attributable to owners (S\$17.2 million as of 30 September 2024).

The board assured shareholders that despite the substantial dividend payout, the company would retain adequate resources to sustain its long-term growth strategy. The company currently holds approximately S\$18.1 million in working capital, which will reduce to S\$10.1 million post-dividend payment.

Strategic Developments and Market Insights

Addressing the state of Singapore’s commercial real estate market, management highlighted that the sector remains competitive and challenging, particularly in the industrial segment, which has seen rising rents and construction costs. While there are no immediate plans to replenish the landbank, the company remains open to participating in land tenders and exploring partnerships for new opportunities.

OneApex is also considering potential growth areas and underdeveloped niches in the commercial property segment. The company emphasized its proactive approach to monitoring market trends for suitable acquisitions and investments.

Governance Update: Re-election of Mr. Low Chin Parn Eric

The re-election of Mr. Low Chin Parn Eric as chairman of the board and audit committee has come under scrutiny due to a public reprimand issued by the Singapore Exchange Regulation (SGX RegCo) in 2023. The reprimand related to breaches of listing rules during his tenure as an independent director at Nutryfarm International Limited.

Despite this, the Nominating Committee (NC) and the board, excluding Mr. Low, have recommended his re-election based on his consistent professionalism, integrity, and contributions since his appointment in 2018. The company’s sponsor, Novus Corporate Finance, reviewed his suitability and raised no objections to his re-election.

Implications for Shareholders

Shareholders should note the substantial dividend payout, which reflects the company’s strong financial performance but reduces its immediate cash reserves. Additionally, the strategic pause on landbank replenishment may signal caution amid challenging market conditions. The re-election of Mr. Low, despite past regulatory scrutiny, may also attract attention from investors and governance analysts.