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FINANCIAL STATEMENTS AND RELATED ANNOUNCEMENT FOR THE FINANCIAL PERIOD ENDED 30 JUNE 2017

Financials Archive

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Profit & Loss

Statement of Comprehensive Income

Balance Sheet

Review of Performance

6 months 2017 compared with 6 months 2016 Performance and segmental review

Revenue

Revenue decreased by $4.0 million ( -7%) as current ongoing projects has lower billing in 2Q 2017 and the contribution from the new Changi Airport JV project is not yet significant. No contribution from the Property Development and the revenue from Investment property segment remained insignificant.

Gross Profit

Gross profit increased by $0.6 million ( 19%) to $3.6 million for the current financial period mainly due to gains from the additional billings for the completed projects.

Administrative expenses was $2.4 million, $0.1 million higher than the same period last year mainly due to the higher staff costs and share of administration costs of the Changi Airport JV project.

Other income was $0.4 million lower mainly due to the reduction in interest income.

There is no share of profits from the joint venture as residential project has been fully recognized in previous years. The share of expenses relates to the administrative cost incurred for the joint venture.

Profit before taxation decreased by $9.9 million to $2.9 million, resulting mainly from absence of share of profit from Joint Venture partially offset by the higher gross profit from the civil engineering projects.

Financial position and cash flow review

The main movements are:

  • Increase in property, plant and equipment of 13.8 million, was mainly due to the acquisition of $6.5 million office units for own use, $0.9 million construction cost for warehouse and about $6.4 million of various plant and equipments to meet the requirement of ongoing projects.
  • Decrease in the investment in joint venture of $12.5 million was due to the dividend received from the Skywoods JV project.
  • Increase in investment securities (total of current and non-current) by $1.6 million, was mainly due to the acquisition of the held-to-maturity securities of $3.1 million offset by the redemption of the matured bond of $1.5 million.
  • Increase in development properties by $19.3 million mainly due to the additional construction cost incurred for the Tuas development project (Shine@TuasSouth) for the half year of 2017.
  • Decrease in trade receivables by $8.9 million mainly due to the lower progress billings for civil engineering projects in Jun 2017.
  • Increase in amounts due from/to a joint venture was mainly relate to the joint venture project at Changi Airport.
  • Increase in prepayments and deposit was due to the down payment paid for ordering of plant and equipments for the new Changi JV project.
  • Hedging reserve was fair value recorded for the hedge for USD purchases commitment for project requirement.
  • Net decrease of cash and short term deposits of $70.4 million for the current financial period was mainly due to the cash outflow for dividend payment of $63.7 million, acquisition of property and equipments of $13.8 million, net cash outflows for operations of $4.8 million offset by the $12.5 million dividend income from the Joint Venture.

Commentary

As at 30 June 2017, the Group's order book for on-going projects of civil engineering segment was approximately $890 million for the Maxwell station, the two Changi Airport projects and Stabling at Gali Batu Depot. The construction of the Group's new industrial development property at Tuas (Shine@Tuas South) has commenced and is expected to be completed in 2018.

The management will continue to tender for infrastructure projects competitively and explore other business opportunities in property related segment to enhance the shareholders' value.