Hock Lian Seng (J2T) investor relations material

Executive summary

• 1H 2026 revenue fell 50.9% YoY to $50.7m; a $52.4m gross loss drove a $54.0m net loss, versus $8.7m net profit in 1H 2025.

• Lower construction revenue reflected revised cost estimates and reduced percentage-of-completion recognition on major infrastructure projects; onerous contract provisions contributed to the construction loss.

Financial highlights

• Revenue was $50.697m, down 50.9% YoY; cost of sales rose 8.0% to $103.080m, resulting in gross loss of $52.383m versus gross profit of $7.853m.

• Other income declined 45.5% to $2.951m; PBT was a loss of $52.873m and net loss after tax was $53.999m, versus profits of $10.006m and $8.682m, respectively.

• Loss attributable to owners was $53.716m; basic and diluted loss per share were 10.53 cents, versus EPS of 1.68 cents in 1H 2025.

• Total comprehensive loss was $53.791m, including $0.208m of other comprehensive income from financial instruments at FVOCI.

Outlook and guidance

• Civil engineering order book stood at ~$323m at 30 June 2026, mainly comprising Aviation Park Station and Serangoon North Station projects.

• Civil engineering conditions are expected to remain challenging amid inflation, labour shortages and intense competition; bidding will be selective, with inflation and labour pressures reflected in project costing.

• Pioneer Road industrial development remains at design stage; construction is expected to start in Q3 2026, with launch targeted for 1H 2027.

• Shine @ TuasSouth had sold 68% and leased 30% of total units to date.