FIRST QUARTER FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT (UNAUDITED) FOR THE PERIOD ENDED 30 SEPTEMBER 2017

Transcription

1 (Incorporated in the Republic of Singapore) Company Registration No.: N FIRST QUARTER FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT (UNAUDITED) FOR THE PERIOD ENDED 30 SEPTEMBER 2017 PART I INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1,Q2 & Q3), HALF-YEAR AND FULL YEAR RESULTS 1(a) An income statement (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial year. Consolidated Income Statement Note Quarter ended Increase/ (Decrease) S$'000 S$'000 % Revenue 57, ,318 (44) Cost of sales (1) (46,242) (93,328) (50) Gross profit 11,043 8, Other income (2a) 1, Other gains/(losses) - net (2b) (275) (858) (68) Expenses - Distribution and marketing (517) (153) Administrative and general (6,215) (5,550) 12 - Finance (1,245) (1,536) (19) Share of profits of associated companies (14) Share of losses of joint ventures (263) (19) 1,284 Profit before income tax (3) 3,755 1, Income tax expense (4) (1,002) (670) 50 Net profit 2, Net profit attributable to: Equity holders of the Company 2, Non-controlling interests ,

2 1(a) Continuation Notes to Income Statement : (1) Cost of sales comprised mainly construction cost and property development cost. (2a) Other income comprised the following : (i) Quarter ended Increase/ (Decrease) S$'000 S$'000 % Interest income Government grants (i) Others - net (8) 1, Government grants for the quarter under review and the corresponding period last year mainly relates to grants received from various government productivity schemes. Lower number of government grants were submitted for the corresponding period last year as a number of construction projects had been substantially completed. (2b) Other gains/(losses) - net comprised the following : (ii) Quarter ended Increase/ (Decrease) S$'000 S$'000 % Currency translation losses - net (ii) (316) (869) (64) Gain on disposal of property, plant and equipment - net Loss on disposal of club memberships (2) - NM * (275) (858) (68) Currency translation loss - net of S$316,000 for the quarter under review was mainly due to translation losses of S$297,000 reclassified from translation reserves to the income statement, upon the liquidation of a subsidiary whose functional currency was in Malaysian Ringgit. Currency translation loss - net of S$869,000 for the corresponding period last year was mainly due to the depreciation of Sterling Pound which resulted in currency translation losses of S$318,000 and S$547,000 being recognised in respect of the Company's cash at bank and Sterling Pound denominated receivables from a subsidiary respectively. (3) Profit before tax is arrived at after (charging)/crediting the following (other than in (2) above): Quarter ended Increase/ (Decrease) S$'000 S$'000 % (a) Amortisation of club memberships (8) (14) (43) (b) Depreciation of property, plant and equipment (iii) (1,107) (1,354) (18) (c) Finance expense (iv) (1,245) (1,536) (19) (d) Property, plant and equipment written off (7) - NM * (iii) (iv) The depreciation of property, plant and equipment was $1.1 million for the quarter under review as compared to S$1.4 million for the corresponding period last year. The decrease was mainly because various construction equipment had been fully depreciated in the last financial year. Finance expense for the quarter under review decreased by S$291,000 to S$1.2 million as compared to S$1.5 million for the corresponding period last year. Finance expense had decreased by S$317,000 mainly due to the discharge of a loan on disposal of a subsidiary which owned an investment property. Note *: "NM" denotes not meaningful 2

3 1(a) Continuation Notes to Income Statement : (4) Income tax expense attributable to results is made up of: (v) Quarter ended Increase/ (Decrease) S$'000 S$'000 % Current income tax - Singapore (v) (1,000) (670) 49 - Foreign (2) - NM * Income tax expense (1,002) (670) 50 Current income tax - Singapore for the quarter under review of S$1.0 million increased by 49% or S$330,000 as compared to the corresponding period last year mainly due to higher profits recognised by one of the Group's subsidiary in Singapore. 1(a)(i) A statement of comprehensive income for the group, together with a comparative statement for the corresponding period of the immediately preceding financial year. Consolidated Statement of Comprehensive Income (a) (b) Quarter ended Increase/ (Decrease) S$'000 S$'000 % Net profit 2, Other comprehensive income/(losses): Items that may be reclassified subsequently to profit or loss: Currency translation differences arising from consolidation - Gains/(losses) (a) 1,657 (3,029) NM * - Reclassification (b) NM * Other comprehensive income/(losses) for the period, net of tax 1,954 (3,029) NM * Total comprehensive income/(losses) for the period 4,707 (2,034) NM * Total comprehensive income/(losses) attributable to: Equity holders of the Company 4,584 (1,944) NM * Non-controlling interests 123 (90) NM * 4,707 (2,034) NM * Foreign currency translation differences are recognised on the translation of the Group's share of net assets of various subsidiaries in Malaysia and Jersey, Channel Islands. Foreign currency translation gains of S$1.7 million for the quarter under review were due to the appreciation of the Sterling Pound and the Malaysian Ringgit. The losses of S$3.0 million for the corresponding period last year were due to the depreciation of the Sterling Pound and the Malaysian Ringgit. Foreign currency translation differences of S$297,000 were reclassified from translation reserves to the income statement, upon completing the liquidation of a subsidiary whose functional currency was in Malaysian Ringgit. Note *: "NM" denotes not meaningful 3

4 1(b)(i) A statement of financial position (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year. COMPANY ASSETS Current assets S$'000 S$'000 S$'000 S$'000 Cash and cash equivalents 107, ,760 32,705 38,717 Trade and other receivables 83,437 79,075 53,904 50,529 Tax recoverable 1,176 1, Properties held for sale 3,734 4, Development properties 57,955 57, Other current assets 10,223 7, , ,755 86,746 89,801 Non-current assets Trade and other receivables 77,288 75, , ,645 Club memberships Available-for-sale financial assets 7,642 7, Investments in joint ventures 1,925 1, Investments in associated companies 4,245 11,542 2,011 2,011 Investments in subsidiaries ,111 66,111 Investment properties 175, , Property, plant and equipment 26,093 26,784 1,234 1,103 Deferred income tax assets 1,154 1, Other non-current assets 1,078 1, , , , ,098 Total assets 559, , , ,899 LIABILITIES Current liabilities Trade and other payables 148, , , ,667 Current income tax liabilities 5,723 4, Borrowings 23,556 23, , , , ,694 Non-current liabilities Trade and other payables 32,571 29, Borrowings 105, ,013 49,829 49,838 Deferred income tax liabilities , ,175 49,829 49,838 Total liabilities 317, , , ,532 NET ASSETS 242, , ,560 99,367 EQUITY Capital and reserves attributable to the equity holders of the Company Share capital 86,579 86,579 86,579 86,579 Treasury shares (1,273) (1,273) (1,273) (1,273) Capital and other reserves (1,150) (3,080) 3,224 3,224 Retained profits 141, ,712 22,030 10,837 Shareholders' equity 225, , ,560 99,367 Non-controlling interests 16,570 16, Total equity 242, , ,560 99,367 4

5 1(b)(ii) Aggregate amount of Group's borrowings and debt securities. Group borrowings excluding finance leases: Amount repayable in one year or less, or on demand As at As at Secured Unsecured Secured Unsecured S$'000 S$'000 S$'000 S$'000 23, ,621 - Amount repayable after one year As at As at Secured Unsecured Secured Unsecured S$'000 S$'000 S$'000 S$'000 55,919 49,830 55,149 49,802 Details of any collateral: 1) S$79.3 million ( 31.2 million and S$22.5 million) term loans - Legal mortgages over a leasehold property owned by a subsidiary in Singapore and a freehold property owned by a subsidiary in Jersey, Channel Islands 5

6 1(c) A cash flow statement (for the Group), together with a comparative statement for the corresponding period for the immediately preceding financial year. CASH FLOWS FROM OPERATING ACTIVITIES 3 months ended S$'000 S$'000 Net profit 2, Adjustments for: Income tax expense 1, Share of losses/(profits) of associated companies and joint ventures 101 (169) Amortisation of club memberships 8 14 Depreciation of property, plant & equipment 1,107 1,354 Loss on disposal of club memberships 2 - Gain on disposal of property, plant and equipment - net (43) (11) Interest income (204) (158) Finance expense 1,245 1,536 Property, plant and equipment written off 7 - Operating cash flow before working capital changes 5,978 4,231 Change in working capital, net of effects from acquisition of a subsidiary: Trade and other receivables (a) (5,597) (27,105) Other current assets (b) (2,790) 42 Development properties/properties held for sale (c) (228) (767) Trade and other payables (d) (19,940) 30,674 Unrealised currency translation differences (e) 328 1,113 Cash(used in)/generated from operations (22,249) 8,188 Income tax paid (65) (288) Net cash (used in)/provided by operating activities (22,314) 7,900 CASH FLOWS FROM INVESTING ACTIVITIES Dividends received from an associated company (f) 7,500 - Expenditure on investment property (g) (1,522) (558) Interest income received Proceeds from disposal of property, plant and equipment Purchase of club memberships (1) - Purchase of property, plant and equipment (694) (498) Advances and repayment to associated companies (h) (4,714) - Advances to a joint venture (i) (1,000) (9,488) Net cash provided by/(used in) investing activities 88 (10,318) CASH FLOWS FROM FINANCING ACTIVITIES Cash and cash equivalents (pledged)/released from pledge (4) 370 Bank facility fees (5) (6) Interest paid (j) (1,923) (2,148) Proceeds from bank loans Proceeds from re-issuance of treasury shares - 7 Repayment of bank loans (481) (606) Repayment of finance lease liabilities (66) (26) Advance from a non-controlling shareholder of a subsidiary (k) 1,093 - Net cash used in financing activities (1,225) (2,284) NET CHANGE IN CASH AND CASH EQUIVALENTS (23,451) (4,702) CASH AND CASH EQUIVALENTS AT BEGINNING OF FINANCIAL PERIOD 130,223 99,048 EFFECT OF CHANGES IN CURRENCY TRANSLATION RATES ON CASH AND CASH EQUIVALENTS 188 (695) CASH AND CASH EQUIVALENTS AT END OF FINANCIAL PERIOD [Note (1)] 106,960 93,651 6

7 1(c) A cash flow statement (for the Group), together with a comparative statement for the corresponding period for the immediately preceding financial year. (Continuation.) Notes to Cash Flow Statement: (1) Cash and cash equivalents comprised the following: 3 months ended S$'000 S$'000 Cash at bank and on hand 45,984 68,044 Short-term bank deposits 61,517 26,147 Less: Cash and cash equivalents pledged (541) (540) Cash and cash equivalents at end of financial period 106,960 93,651 (a) The increase in trade and other receivables of S$5.6 million during the quarter under review was mainly due to the increase in amount of work carried out for five construction projects resulting in an increase in trade and other receivables of S$6.8 million. The increase was partially offset by net collections of S$1.3 million from the sale of the Group's Malaysia development properties. The increase in trade and other receivables of S$27.1 million during the corresponding period last year was mainly due to the increase in amount of work carried out for two construction projects resulting in an increase in trade and other receivables of S$29.1 million. The increase was partially offset by net collections of S$2.3 million from the sale of the Group's Malaysia development properties. (b) (c) The increase in other current assets of S$2.8 million during the quarter under review was mainly due to partial payment of S$3.3 million paid by the Group for the purchase of a freehold residential property in Singapore. The increase in development properties/properties held for sale during the quarter under review of S$228,000 was mainly due to additional development costs incurred on the Group's development properties in Malaysia amounting to S$810,000. The increase was partially offset by an inflow of S$578,000 arising from the sale of a completed unit from the Group's development properties in Malaysia. The increase in development properties/properties held for sale during the corresponding period last year was S$767,000 mainly due to additional development costs of S$1.0 million incurred on one of the Group's development properties in Malaysia. The increase was partially offset by an inflow of S$345,000 from the sale of completed units from the same development property. (d) The decrease in trade and other payables during the quarter under review of S$19.9 million was mainly due to payments of S$22.5 million made to subcontractors of three construction projects. In addition, the decrease was also due to the utilisation of a mobilisation fund of S$4.1 million received for a construction project. The decrease was partially offset by an increase in trade and other paybles of S$6.9 million as a result of an increase in amount of work carried out for two other ongoing construction projects. The increase in trade and other payables of S$30.7 million during the corresponding period last year was mainly due to an increase in work carried out for several ongoing constructions projects, resulting in an increase in trade and other payables of S$32.4 million. The increase was partially offset by a decrease in trade and other payables for construction projects amounting to S$2.5 million due to payments made to subcontractors. (e) (f) (g) (h) (i) Currency translation differences for the quarter under review and the corresponding period last year arose from the translation of working capital denominated in Malaysian Ringgit and Sterling Pound. During the quarter under review, the Group received dividends from an associated company in Singapore that develops residential properties for sale. The expenditure on investment properties during the quarter under review and the corresponding period last year relates to predevelopment costs incurred prior to the redevelopment of one of the Group's freehold commercial property in the United Kingdom. During the quarter under review, the Group made a repayment of S$4.8 million to an associated company in Singapore that develops residential properties for sale. The advances to a joint venture of S$1.0 million during the quarter under review was in respect of the Group's proportionate share of advances mainly to fund the working capital of a joint venture that owns a leasehold property in Singapore. The advances to a joint venture of S$9.5 million during the corresponding period last year was in respect of the Group's proportionate share of advances to fund the acquisition of a company that owns a leasehold property in Singapore. (j) (k) Lower interest paid for the quarter under review was mainly due to the discharge of a loan on disposal of a subsidiary which owned an investment property. The advances from a non-controlling shareholder of a subsidiary during the quarter under review of S$1.1 million pertains to the non-controlling shareholder's proportionate share of advances extended to the subsidiary for the purpose of funding the predevelopment costs incurred prior to the redevelopment of a freehold commercial property in the United Kingdom. 7

8 1(d)(i) A statement (for the issuer and Group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED) FOR THE PERIOD ENDED 30 SEPTEMBER 2017 Attributable to equity holders of the Company Group Share capital Treasury shares Capital and other reserves Retained profits Total Noncontrolling interests Total equity S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 Balance as at 1 July ,579 (1,273) (3,080) 138, ,938 16, ,385 Net profit ,654 2, ,753 Other comprehensive income - - 1,930-1, ,954 Total comprehensive income - - 1,930 2,654 4, ,707 Balance as at 30 September ,579 (1,273) (1,150) 141, ,522 16, ,092 Attributable to equity holders of the Company Group Share capital Treasury shares Capital and other reserves Retained profits Total Noncontrolling interests Total equity S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 Balance as at 1 July ,596 (1,585) 1, , ,227 1, ,498 Net profit Other comprehensive loss - - (2,872) - (2,872) (157) (3,029) Total comprehensive income - - (2,872) 928 (1,944) (90) (2,034) Employee share option scheme - Treasury shares reissued (1) 9 (1) Capital contribution by a non-controlling interest of a subsidiary ,476 14,476 Total transactions with owners, recognised directly in equity (1) 9 (1) ,476 14,483 Balance as at 30 September ,595 (1,576) (1,574) 126, ,290 15, ,947 8

9 1(d)(i) A statement (for the issuer and Group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year (continuation) Company Share capital Treasury shares Capital and other reserves Retained profits Total S$'000 S$'000 S$'000 S$'000 S$'000 Balance as at 1 July ,579 (1,273) 3,224 10,837 99,367 - Net profit ,193 11,193 - Other comprehensive income Total comprehensive income ,193 11,193 Balance as at 30 September ,579 (1,273) 3,224 22, ,560 Company Share capital Treasury shares Capital and other reserves Retained profits Total S$'000 S$'000 S$'000 S$'000 S$'000 Balance as at 1 July ,596 (1,585) 3,268 16, ,256 - Net loss (4,742) (4,742) - Other comprehensive income Total comprehensive income (4,742) (4,742) Employee share option scheme - Treasury shares reissued (1) 9 (1) - 7 Total transactions with owners, recognised directly in equity (1) 9 (1) - 7 Balance as at 30 September ,595 (1,576) 3,267 12, ,521 9

10 1(d)(ii) Details of any changes in the company's share capital arising from rights issue, bonus issue, share buybacks, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State also the number of shares that may be issued on conversion of all the outstanding convertibles as at the end of the current financial year reported on and as at the end of the corresponding period of the immediately preceding financial year. During the quarter ended 30 September 2017, no share option was exercised from the options that were granted in 2012 to The Company did not purchase any of its ordinary shares during the quarter ended 30 September 2017 and the corresponding period last year. The Company's issued and fully paid up shares as at 30 September 2017 comprised 381,540,304 (30 September 2016: 380,715,304) ordinary shares with voting rights and 3,489,300 (30 September 2016: 4,314,000) treasury shares with no voting rights. Under the Option Scheme 2007, the number of shares that may be issued on conversion of all the outstanding share options under the Option Scheme 2007 as at 30 September 2017 was 2,165,000 (30 September 2016: 3,490,000). 1(d)(iii) To show the total number of issued shares excluding treasury shares as at end of the current financial period and as at the end of the immediately preceding year. Total number of ordinary shares excluding treasury shares ,540, ,540,304 1(d)(iv) A statement showing all sales, transfers, disposal, cancellation and/or use of treasury shares as at the end of the current financial period reported on. Balance as at Purchase of treasury shares Transfer to employees to fulfil obligations under the Option Scheme 2007 Balance as at ,489, ,489, Whether the figures have been audited or reviewed and in accordance with which auditing standard or practice. The figures in this announcement have not been audited or reviewed by the Company's auditors. 3. Where the figures have been audited or reviewed, the auditors' report (including any qualifications or emphasis of a matter). Not applicable. 4. Whether the same accounting policies and methods of computation as in the issuer's most recently audited annual financial statements have been applied. The Group has applied the same accounting policies and methods of computation in the financial statements for the current financial year as compared with the most recently audited financial statements as at 30 June If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change. The Group has adopted all the new and revised Financial Reporting Standards ("FRS") and Interpretations of FRS ("INT FRS") that are relevant to its operations and effective for accounting periods beginning on or after 1 July The adoption of these new/revised FRS and INT FRS does not result in changes to the Group's and Company's accounting policies and has no material effect on the amounts reported for the current period or prior years. 10

11 6. Earnings per ordinary share of the group for the current financial period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends. Earnings per ordinary share of the Group after deducting any provision for preference dividends: Quarter ended (a) - Based on weighted average number of ordinary shares in issue 0.70 cents 0.24 cents (b) - On a fully diluted basis 0.70 cents 0.24 cents (1) (2) Notes:- Basic earnings per share is computed based on the weighted average number of ordinary shares (excluding treasury shares which have no voting rights) in issue during the quarter reported on of 381,540,304 shares (30 September 2016: 380,713,402 shares). For the purpose of calculating diluted earnings per share for the quarter ended 30 September 2017, the weighted average number of shares in issue (excluding treasury shares) during the year under review of 381,752,627 shares (30 September 2016: 381,206,048 shares) were adjusted for the effects of all dilutive outstanding share options. 7. Net asset value (for the issuer and Group) per ordinary share based on issued share capital of the issuer at the end of the:- (a) (b) current financial period reported on; and immediately preceding financial year. COMPANY As at As at As at As at Net asset* value per ordinary share based on issued share capital (excluding treasury shares which have no voting rights) as at the end of the financial period reported on cents cents cents cents * Net asset is defined as shareholders' equity 8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group's business. It must include a discussion of the following:- (a) any significant factors that affected the turnover, costs and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors; and Revenue Revenue of S$57.3 million for the quarter under review was S$45.0 million or 44% lower than revenue for the corresponding period last year mainly due to lower revenues from substantially completed construction projects amounting to S$52.0 million and from an ongoing construction project amounting to S$6.0 million during the quarter under review as compared to the corresponding period last year. The lower revenue was partially offset by revenue recognition of S$13.8 million for another construction project. No revenue was recognised for this project in the corresponding period last year as the construction progress then, had not yet reached the stage where revenue recognition could commence. Cost of sales and Gross profit Cost of sales for the quarter under review decreased by 50% mainly due to a decrease in revenue of 44% and also due to cost savings from two substantially completed projects. Distribution and marketing expenses Distribution and marketing expenses of S$517,000 during the quarter under review was S$364,000 higher than the corresponding period last year mainly due to selling expenses incurred on higher sales from the Group's development in Malaysia. 11

12 8. (a) any significant factors that affected the turnover, costs and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors; and Administrative and general expenses Administrative and general expenses of S$6.2 million for the quarter under review was higher than the expenses for the corresponding period last year of S$5.6 million mainly due to higher staff costs of S$562,000. Finance expenses Finance expense for the quarter under review was S$1.2 million as compared to S$1.5 million for the corresponding period last year mainly due to lower interest paid upon the discharge of a loan upon disposal of a subsidiary which owned an investment property. Share of losses of joint ventures The share of losses of joint ventures for the quarter under review of S$263,000 mainly relates to the Group's proportionate share of losses from a joint venture company in Singapore that owns a leasehold property. Income tax expense The income tax expense for the quarter under review was S$1.0 million compared to S$670,000 for the corresponding period last year. The higher income tax of S$330,000 was mainly due to higher profits recognised by one of the Group's subsidiary in Singapore. 8. (b) any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on. Cash and cash equivalents Cash and cash equivalents as at 30 September 2017 was S$107.5 million compared to S$130.8 million as at 30 June Please refer to the cash flow statements for the Group for the period ended 30 September 2017 in item 1(c) of this announcement for further details. Other assets (Current and Non-Current) Total other assets of S$11.3 million as at 30 September 2017 increased by S$2.8 million compared to S$8.5 million as at 30 June 2017 mainly due to partial payment of S$3.3 million paid by the Group for the purchase of a freehold residential property in Singapore. Investments in associated companies Investments in associated companies as at 30 September 2017 decreased by S$7.3 million mainly due to the receipt of S$7.5 million dividends from one of the associated companies in Singapore that develops residential properties for sale. Investment properties Investment properties of S$175.4 million as at 30 September 2017 increased by S$4.0 million compared to S$171.4 million as at 30 June The increase was mainly due to expenditure on investment properties of S$1.5 million pertaining to predevelopment costs incurred prior to the redevelopment of one of the Group's freehold commercial property in the United Kingdom. In addition, the Group recognised translation gains of S$2.5 million on its investment properties in the United Kingdom as a result of the appreciation of the Sterling Pound. Trade and other payables (Current + Non Current) Total trade and other payables of S$181.4 million as at 30 September 2017 decreased by S$24.1 million compared to S$205.5 million as at 30 June 2017 mainly due to payments of S$22.5 million made to subcontractors of two substantially completed and one ongoing construction projects, and the utilisation of a mobilisation fund of S$4.1 million received for a construction project. In addition, the decrease was also due to a repayment of S$4.8 million owing to an associated company. The decrease was partially offset by an increase in trade and other payables of S$6.9 million as a result of an increase in amount of work carried out for two ongoing construction projects. Current income tax liabilities The increase in current income tax liabilities by S$939,000 since 30 June 2017 to S$5.7 million as at 30 September 2017 was mainly due to tax provision of S$1.0 million in respect of a subsidiary in Singapore. 12

13 Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results. The current announced results are in line with the comments previously disclosed in part 10 in the results announcement for the financial year ended 30 June A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months. Based on advanced estimates released by the Ministry of Trade and Industry (MTI) on 13 October, Singapore s economy grew 4.6% in the third quarter of 2017, higher than the 2.9% growth in the previous quarter. On a quarter-on-quarter seasonally-adjusted basis, GDP showed an improvement from the 2.4% growth in the previous quarter, to expand by 6.3%. The construction sector continued to be weighed down by weak private sector activities, and contracted by 6.3% on a year-onyear basis in the third quarter, extending the 6.8% decline in the previous quarter. The construction sector could remain weak for the rest of However, there may be some slight improvement in 2018, with the Government bringing forward an additional S$1.4 billion worth of public sector contracts over the next two years to support the industry. The Group s outstanding value of construction projects in progress not yet reported as revenue is S$542.6 million. Demolition works have begun on the Group s joint venture redevelopment project at 2 Serangoon Road. The scope of work for the integrated development includes the demolishing and rebuilding of the main block, and the refurbishing of the adjoining annex block. Works are expected to complete in the second half of The design plans for the landed homes at One Tree Hill are being finalised and we re targeting to launch the project in Meanwhile the Group continues its pre-development works at the Wembley site, which will comprise 300 units of serviced residences and a 599-bed student accommodation when completed. In Malaysia, the Group is working on planning submission for its mixed development in Petaling Jaya, and continues to market for sale its landed residential developments in Twin Palms Sungai Long. 11. Dividend (a) Current Financial Period Reported On Any dividend declared for the current financial period reported on? None (b) (c) (d) Corresponding Period of the Immediately Preceding Financial Year Any dividend declared for the corresponding period of the immediately preceding financial year? Date payable - Not applicable Books closure date - Not applicable None 12. If no dividend has been declared/recommended, a statement to that effect. No dividend has been declared or recommended for the current financial period reported on. 13. If the Group has obtained a general mandate from shareholders for IPTs, the aggregate value of such transactions as required under Rule 920(1)(a)(ii). If no IPT mandate has been obtained, a statement to that Not applicable as no IPT mandate has been obtained. 13

14 14. Confirmation by the Board pursuant to Rule 705(5) of the Listing Manual The Directors of the Company hereby confirm to the best of their knowledge that nothing has come to the attention of the Board of Directors which may render the unaudited financial statements for the first quarter ended 30 September 2017 to be false or misleading in any material respect. 15. Confirmation pursuant to Rule 720(1) of the Listing Manual The Company confirms that it has procured undertakungs from all its Directors and executive officers in the format set out in Appendix 7.7 pursuant to Rule 720(1) of the Listing Manual. On behalf of the Board of Directors Raymond Lum Kwan Sung Director David Lum Kok Seng Director BY ORDER OF THE BOARD TONY FONG TAN ENG CHAN GERALD COMPANY SECRETARIES 10 November 2017 Submitted by Tony Fong, Tan Eng Chan Gerald, Company Secretaries on 10 November 2017 to the SGX. 14