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Financials

UNAUDITED INTERIM REPORT - FOR THE FIRST HALF YEAR ENDED 30 JUNE 2024

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Consolidated statement of profit or loss

The calculation of basic earnings per share at 30 June was based on profit attributing to owners of the Company and the weighted average number of ordinary shares outstanding.

Consolidated statement of other comprehensive income

Statements of financial position

Review of performance

Revenue

Group revenue for the half year ended 30 June 2024 (1H2024) was $99.8 million, reduced by $6.4 million(-6%) as compared to the previous corresponding period (1H2023). Reveue for Civil Engineering was $17.3 million lower, offset by the higher turnover from Property Development segment of $10.9 million. The substantial completion of CAG JV project end of 2023 was the key factor for lower revenue for Civil engineering segment in 1H2024. Sales of industrial building units at Shine@Tuas south was the contributor for the higher in revenue for Property Development segment.

Gross Profit

Gross profit increased by $14.5 million (+214%) to $21.3 million, both Civil Engineering and Property development has contributed positively to the gross profit, Civil engineering's higher gross profit was mainly due to the finalisation of account with subcontractors as CAG JV project near completion. Higher revenue and favourable selling price for the units at Shine@Tuas south has resulted in additional $7.5mil gross profit for Property Development segment.

Other Income

Other income was $6.4 mil, decrease of $1.0 million (-13%), mainly due to legal cost award of $1.1 million recorded for the GS HLS JV arbitration case in 1H2023. For 1H 2024, higher interest income of $0.6 million and government grant of $0.5 million , offset the lower rental income from Shine@TuasSouth of $0.7 million.

Distribution and selling costs

Higher distribution cost was related to the commission expenses for sales of development properties.

Administration costs

Higher administration costs recorded for 1H 2024 was due to higher performance bonus and staff cost than 1H 2023.

Share of profits of joint venture

Share of loss of joint venture was insignificant for 1H2024 as shareholders loan was fully paid off in early 2024.

Profit before tax and tax expenses

In summary, the higher 1H2024 profit before tax was contributed by the gross profit due to finalisation of CAG JV project and higher sales for property development segment, offset by higher administrative cost and lower other income.

Financial position and cash flow review

Non-current assets was $43.0 million, decreased by $8.0 million as compared to end of 2023, mainly due to the repayment of shareholder loan of $8.1 million and $2.2 million dividend payout by the Mattar residential joint venture project, offset by additional acquisition of long term investment securities of $2.9 million.

Net current asset increased by $21.7 million, mainly due to the higher cash balance of $23.6 million, higher trade receivable of $6.2 million (for the sales of development units recognised in June 2024), lower trade payable of $9.5 million with CAG joint venture project near completion and net increase in short term investment securities of $6 million, offset by lower contract assets $6.5 million(mainly due to partial release of retention of CAG joint venture project of $17 million), the reduction in development properties of $16.7 million with cost recognised for the sales of development units.

Higher cash balance of $23.6 million was mainly due to cash generated from operations of $29.0 million, loan repayment and dividend of $10.4 million from joint venture, offset by the net cash outflow for the purchase and redemption of investment securities of $8.1 million, dividend payment of $7.7 million and. Net cash generated from operations was mainly contributed from the proceeds from the sales of development properties and release of partial retention of CAG JV project.

Investment securities (current and non-current) amount to $38.2 million, increased by $8.9 million. Mainly due to the new addition of bonds and credit linked note of $9.6 million, gain in market value of $0.7 mil offset by the redemption of bond $1.4 million.

Shareholders equity was $272.4 million, about $13.3 million higher than 31 December 2023. Mainly due to the current period net profit after tax of $20.4 million offset by the dividend payment of $7.7 million and fair value gain for investment securities recognised in comprehensive income of $0.6 million.

Commentary

The order book for civil engineering segment stands at approximately $624 million as at 30 June 2024 which include mainly the Aviation park station project and Serangoon North Station project. The joint venture CAG project is expected to be completed by 3^rd quarter 2024.

The Group's industrial building project, Shine@TuasSouth, has sold 50% and leased 46% of the total units to date. The interest for industrial building units has picked up since early 2023.

The outlook of construction industry remains challenging on the back of competitive environment, labour shortage, rising material and labour cost. The management will continue to tender for infrastructure projects competitively and explore other business opportunities to enhance the shareholders' value.