Key Points from the Announcement

• Incorporation Date: 2 January 2026
• New Subsidiary: Hiap Seng Energy Technology Pte. Ltd. (“HSET”)
• Ownership: Wholly-owned by Hiap Seng Industries Limited
• Location: Singapore
• Business Activities: HSET will act as a general contractor for building construction, including major upgrading works, and will provide engineering design and consultancy services.
• Issued and Paid-up Capital: S\$2.00, comprising 2 ordinary shares
• Funding: Incorporation was funded through internal resources of the Group
• Financial Impact: Not expected to have any material impact on the net tangible assets or earnings per share of Hiap Seng Industries Limited for the financial year ending 31 March 2026
• Related Party Interests: None of the directors or substantial shareholders have any interest, direct or indirect, in the subsidiary, except for their interests through shareholdings and directorships in the Company
• Governance: Announcement made by Khua Kian Hua, Executive Director

Important Information for Shareholders

For shareholders and investors, the incorporation of Hiap Seng Energy Technology Pte. Ltd. marks a strategic expansion by Hiap Seng Industries Limited. While the move demonstrates the Group’s continued commitment to broadening its business activities to include general contracting and engineering consultancy in Singapore, the initial capital injection is minimal (S\$2.00), and the company has clarified that there is no expected material impact on its current year’s net tangible assets or earnings per share.

Key takeaway for shareholders: This announcement is unlikely to be immediately price-sensitive, as the financial impact for the year ending 31 March 2026 is not material. However, investors may wish to monitor future developments and contracts awarded to HSET, as successful expansion into new business lines could have longer-term implications for the Group’s financial performance and share value.

Potentially Price-Sensitive Factors

• The new subsidiary could pave the way for future growth if HSET secures significant contracts or expands its operations beyond the initial scope.
• There are currently no related party transactions or conflicts of interest associated with the incorporation, reducing governance risk.
• Internal funding suggests prudent capital management and no dilution risk to existing shareholders at this stage.

Conclusion

The incorporation of Hiap Seng Energy Technology Pte. Ltd. is a strategic move by Hiap Seng Industries Limited, positioning the Group for future opportunities in construction and engineering consultancy. While there is no immediate financial impact or price-sensitive information disclosed in this announcement, investors should keep an eye on subsequent developments regarding the subsidiary’s business activities, which could become material and affect share value in the medium to long term.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell securities. Investors should conduct their own research or consult a professional advisor before making investment decisions. The information above is based on the official announcement and is accurate as of the date of publication. Future developments may alter the impact or significance of the information provided.

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