REVENUE AND EARNINGS
Revenue (external sales)
Administrative expenses was $0.8 million (12%) lower than
previous year due to the lower performance bonus accrued
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The decrease in the fair value of investment properties
was mainly related to the fair value loss on the workers’
dormitory. The workers’ dormitory had been demolished in
4th quarter 2015.
The share of result of joint venture was $8.0 million,
compared to $43,000 recorded for FY2014. This was
mainly due to the increased sales and further progress
in the construction works for the Skywoods project. The
construction of the project is about 97% completed and
85% sold as end of December 2015. This private residential
project is recognised using percentage of completion
method.
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million, resulting mainly from the lower revenue from
Property Development segment and lower gross margin for
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sharing from the joint venture in the residential development
project.
FINANCIAL POSITION AND
CASH FLOW REVIEW
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the Group shareholders’ funds increased by $16.2 million to
$221.6 million as at 31 December 2015.
The Group has a net current asset of $188.2 million as at 31
December 2015, an increase by $25.9 million.
Cash and short term deposits decreased by $8.6 million to
$156.9 million as at 31 December 2015. The decrease was
mainly due to the dividend payment of $20.4 million and
repayment of bank loans of $5 million, additional $6.0 million
loan to a joint venture for the funding of the marketing
cost of The Skywoods and about $7.9 million outflow for
investment in held-to-maturity securities and acquisition of
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operating activities mainly arising from TOP of Ark@KB of
$15.2 million and proceeds from bank loan of $15.5 million
for the Tuas site.
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In $’ million
FY 2015
% FY 2014
%
Civil Engineering
77.4 44.3 57.4 21.9
Property
Development
89.5 51.2 193.5 74.0
Investment
Properties
7.9
4.5
10.7
4.1
174.8 100.0 261.6 100.0
In $’ million
FY 2015
FY 2014
Civil Engineering
11.0
37.5
Property Development
22.3
52.6
Investment Properties
5.4
7.4
38.7
97.5
Revenue decreased by $86.8 million (33%) to $174.8 million
for the current financial year, mainly attributed to the
54% drop in the revenue from the Property Development
segment. Ark@KB which was completed and fully recognised
in 2015 was a much smaller project compared to the Ark@
Gambas which was recognised in FY2014. The decrease in
the revenue for Property Development segment was partially
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the construction of the Maxwell station and Airport project
has picked up in 2015 and the construction for Stabling Yard
at Gali Batu has commenced in 2015. The revenue from
Investment property segment was mainly rental income from
workers’ dormitory, revenue was lower as the dormitory has
ceased operation in November 2015 due to lease expiry.
Gross profit decreased by $58.8 million (60%) to
$38.7 million for FY2015. The lower gross profit was
attributed to lower revenue of Property development
segment and lower gross margin from the existing projects
from Civil Engineering segment.
Other income increased by $2.1 million (79%) to $4.7 million,
which was mainly due to the higher interest income of
$1.3 million.
Distribution cost reduced by $0.6 million to $0.3 million in
FY2015, in line with lower sales from Property Development
segment.
Operations and Financial Review
HOCK LIAN SENG HOLDINGS LIMITED
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