Comprehensive Overview

Kun Group Co., Ltd. is a Singaporean mechanical and electrical service provider that specializes in providing electrical engineering solutions. The Group's electrical engineering services mainly include (1) customizing and/or installing electrical systems, (2) assisting in obtaining legal approval, and (3) testing and putting them into use. The group's services are important to ensure the functionality and connectivity of the electrical system and the compliance of the electrical system with the specified design and legal requirements.

The Group's electrical engineering services can be applied to new building development, reconstruction, addition and remodeling, and renewal projects, including residential, commercial and industrial buildings. The Group engages in public and private projects. Public project clients are construction contractors employed by the Housing Development Authority (the public housing authority of the Government of Singapore and the local statutory body in Singapore) for new building development and reconstruction projects and statutory bodies in Singapore relating to addition and remodeling projects; clients of private sector projects are construction contractors employed by property developers.

Risk Factors

Most of the Group's business depends on the Singapore Government's policies and expenses for public housing development projects. In the 2017/18 fiscal year, 91.0% of the Group's total revenue came from the provision of electrical engineering services to the Housing and Development Authority. If the Singapore Government enacts policies to reduce support for public housing development projects, it will lead to a decrease in government expenditure on the construction and upgrading of public housing buildings and related facilities, which in turn will have an adverse impact on the Group's business.