Main Points

• Corporate Monitor&rsquo s Report: Highlights concerns about Hong Fok Corporation&rsquo s executive pay being disproportionate to its performance.
• Family Control: The Chong family owns ~70% of the company and dominates management, with six family members among the top 10 highest-paid staff.
• High Executive Compensation: In 2024, the two co-presidents earned over S$9.9 million combined, nearly 10% of company revenue &mdash far higher than peers. Including other family members, total pay reached ~16% of annual revenue.
• Profit vs. Revenue: FY2025 net profit rose 116% to S$30.6 million, but revenue fell 6%. Gains were largely from property revaluation (International Building, Yotel Hotel), not cash inflows.
• Weak Operational Performance: Stripping out revaluation gains, operating revenue and margins have declined. Gross yield (2%) and net operating yield (1%) are well below industry averages (4.5% and 3.3%).
• Share Price Lag: While peers&rsquo stocks surged 30&ndash 100% in the past year, Hong Fok&rsquo s rose only ~5%.
• Governance Concerns: Heavy reliance on revaluation gains, lack of clawback provisions, and high bonuses raise fairness issues for shareholders.
• Historical Disputes: Executive pay has been contentious since at least 2012, leading to shareholder walkouts and SGX inquiries. The company later set up a remuneration committee and hired consultants.