Tuan Sing Quarterly Report Summary - July 2013

REVIEW OF SEGMENT PERFORMANCE 

Property

For the first half year, Property revenue rose to $92.1 million, a 23% increase over that of 1H2012  
attributable mainly from Sennett Residence which was launched in March this year.  As at 30 June 2013, 262 units or 95% of Seletar Park Residence had been sold or booked at an aggregate sale value of $287.8 million.  As at 30 June 2013, 291 units or 88% of Sennett Residence had been sold or booked at an aggregate sale value of $364.5 million.  Revenue and earnings from these sales will be progressively recognized. In Shanghai, additional units sold at Lakeside Ville Phase III brought the total number of units sold to 163 or 95% of the project.  

Revenue from investment properties decreased 5% to $5.1 million due to lower contribution from
Robinson Towers and International Factors Building offset partly by higher contribution from other
properties.  Majority of tenants at Robinson Towers and International Factors Building moved out of the buildings by end May 2013 prior to the demolition of the buildings which took place in June 2013.

On the whole, Property contributed a profit after tax of $12.6 million and accounted for 58% of the
Group’s total profit for the first half year 2013.


Hotels Investment

For the first half year, GHG posted revenue of A$64.5 million comparable to the same period last year.  Net property income decreased 5% to A$20.1 million due to lower contribution from hotel operations offset partly by higher contribution from non-hotel rental.  The combined Revenue Per Available Room (“RevPar”) reported by Grand Hyatt Melbourne and Hyatt Regency Perth edged down 1% year-on-year as a result of a marginal decrease in occupancy and room rates.  The decrease was mitigated partly by higher food and beverage revenue as compared with that for last year.  

Despite lower net property income, GHG’s profit after tax of A$4.4 million was 3% higher than the
same period last year attributable to lower depreciation charges as well as lower interest expense.  Certain fixed assets had been fully depreciated; and there was a partial loan repayment last year. This translated into the Group’s share of GHG’s profit of $2.8 million for the first half year 2013. After deducting finance costs and deferred tax provision at the investment holding level, Hotels Investment contributed a profit after tax of $1.2 million, as compared to $1.3 million a year ago.



Industrial Services

For the first half year, Industrial Services reported revenue of $91.3 million and profit after tax of $1.4 million, as compared to revenue of $101.9 million and profit after tax of $1.4 million in the previous corresponding period. Revenue from SP Corp declined 10% to $86.6 million as a result of lower sales in both commodities and tyre trading.  However, profit after tax improved 7% to $1.4 million due to significantly lower loss from geotechnical and soil investigation businesses in the current period following the scaling down of the Singapore operations since last year.  



Other Investments

Other Investments contributed a profit after tax of $7.2 million as compared to a profit after tax of $7.7 million in the same period a year ago. GulTech reported a 7% dip in revenue to US$127.8 million and a 2% dip in profit after tax to US$23.7 million.  Sales decreased as market was subdue, the impact of which was cushioned by foreign currency exchange gain, higher scrap sales income and lower income tax expenses.  Net profit attributable to shareholders decreased 2% to US$13.4 million.  Consequently, this translated into a lower share of profit for the Group.



Source: Tuan Sing quarterly report July 2013