Construction group and real estate developer Tiong Seng Holdings Limited has announced that its net profit attributable to equity holders hit S$21.4 million, on revenue of S$252.3 million, for the full year ended 31 December 2010.
The lower revenue was mainly attributed to a higher proportion of projects that were near completion or completed in Singapore, such as Sentosa Integrated Resorts, Marina Bay Financial Centre Tower 3 and Sky @ Eleven. This led to a decline of about S$165.8 million in construction contract revenue.
However, this was offset by the increase in work for ongoing projects, such as Raffles City Shopping Mall, Shelford Suites and Wharf, which come up to about S$114.2 million.
The group’s property development business in China also saw a decline in revenue of S$72.6 million. The share of profit from joint ventures (JV) also slid by about S$3.7 million in 2010.
Meanwhile, the direct sales and licensing segment contributed about S$1.7 million to the group’s revenue for 2010.
As of 31 December 2010, the group’s earnings per share stood at 2.80 Singapore cents, while its net asset value per share hit 22.62 Singapore cents.
Looking ahead, Non-Executive Chairman Pek Ah Tuan said the group will continue exploring investments in automation, training and other measures to boost productivity, while utilising the new initiative of the government for higher tax allowances for such productivity investments.
Mr. Pek added, “The PRC government’s focus and initiatives to develop the second- and third-tier cities beyond the first-tier cities have not ceased. We anticipate that price trends for residential and commercial units in second- and third-tier cities are likely to remain at least stable in 2011 and the near medium term. This will be more the case in Tianjin, where the Tianjin Binhai New Area (TBNA) is viewed as a new driving force in the PRC economy.”