HKE Holdings sees revenue rise but net loss widens

HKE Holdings Limited reported total revenue of S$22,977,219 for the year ended June 30, 2025, a 24.6% increase from S$18,433,408 in 2024. This growth was primarily fueled by a shift in project mix within the engineering business, focusing on fewer but larger contracts, and a 48.4% increase in revenue from trading of derivatives and asset management services to S$1,440,610. Despite increased revenue, the company posted a net loss of S$13,627,649, an increase from S$12,649,151 in the prior year.

Gross profit for the year was S$9,169,752, with a gross profit margin of 39.9%, down from 47.9% in 2024 due to competitive pricing and higher costs in large-scale contracts. Administrative expenses rose to S$22,973,877, up from S$22,472,788, mainly attributed to increased IT expenses and cloud service charges for the FinTech Platform Business and Virtual Asset Trading Platform Operators Licence application. Finance costs also saw a substantial increase of 175.9% to S$169,385, driven by a new borrowing obtained in May 2025 and higher interest on renewed leases.

As of June 30, 2025, the Group's current assets stood at S$36.9m, with current liabilities at S$18.2m, resulting in a current ratio of 2.0. The gearing ratio increased significantly to 31.2% from 1.2% in 2024, primarily due to an unsecured loan of approximately $10.0m from a controlling shareholder to finance working capital and business operations.