ANNUAL REPORT 2016 96 Robinson Road Road 96 Robinson Building #10-01 SIF 068899 Singapore 6536 6696 (65) Tel: 6536 6620 (65) Fax: CONTENTS
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2016 ANNUAL REPORT SING HOLDINGS LIMITED 96 Robinson Road #10-01 SIF Building Singapore 068899 Tel: (65) 6536 6696 Fax: (65) 6536 6620 www.singholdings.com ANNUAL REPORT 2016 REPORT ANNUAL CONTENTS 02 33 CORPORATE PROFILE BALANCE SHEETS 03 34 CHAIRMAN’S MESSAGE STATEMENTS OF CHANGES IN EQUITY 07 CORPORATE DATA 36 CONSOLIDATED CASH FLOW 08 STATEMENT CORPORATE STRUCTURE 38 09 NOTES TO THE FINANCIAL BOARD OF DIRECTORS STATEMENTS 11 88 MANAGEMENT TEAM STATISTICS OF SHAREHOLDINGS 13 90 CORPORATE GOVERNANCE NOTICE OF ANNUAL GENERAL REPORT MEETING 24 PROXY FORM DIRECTORS’ STATEMENT 27 INDEPENDENT AUDITOR’S REPORT 31 CONSOLIDATED INCOME STATEMENT 32 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME SING HOLDINGS LIMITED 2016 ANNUAL REPORT 01 SING HOLDINGS LIMITED 2016 ANNUAL REPORT 02 CORPORATE PROFILE Founded in 1964, Sing Holdings Limited and its subsidiaries (the “Group”) is a property development and investment group listed on the Mainboard of the The Group prides itself Singapore Exchange. It has an established track record with investment and in delivering quality development experiences in a wide spectrum of properties ranging from landed developments to houses, apartments, condominiums, office and industrial buildings, factories to warehouses. The Group made its maiden step into the hospitality sector in early its purchasers and 2017, by acquiring a limited service hotel in Melbourne known as Travelodge tenants. From the Docklands. conceptualisation of Some of the Group’s recent developments include residential projects such as project layouts and BelleRive in Bukit Timah area, The Laurels at Cairnhill, Waterwoods in Punggol designs to the selection and Robin Residences at Robin Drive. The Group also developed industrial and of fittings and finishes, commercial buildings such as BizTech Centre along Aljunied Road, EastGate in the East Coast area and Ocean Towers, an award-winning Grade-A office building in the construction of Shanghai, the People’s Republic of China. the development to the final touches upon The Group prides itself in delivering quality developments to its purchasers and tenants. From the conceptualisation of project layouts and designs to the selection completion, every of fittings and finishes, the construction of the development to the final touches detail is meticulously upon completion, every detail is meticulously combed to ensure finest quality. combed to ensure As a testament to this, the Company received the prestigious FIABCI(1) Singapore Property Awards 2015 in the Residential (Mid Rise) Category for its project, The finest quality. Laurels. Another project, Waterwoods, was also bestowed the BCA(2) Green Mark Award (Gold Plus) in 2016. Going forward, the Group will continue to focus on its core business of property development and investment. It endeavours to deliver dream homes to its homebuyers, in its bid to realise its vision of becoming A Developer of Premier Living. Notes: (1) FIABCI is the French acronym for “Federation Internationale des Administrateurs de Bien-Conselis Immobiliers” which means “The International Real Estate Federation”. The FIABCI awards recognise outstanding developments evaluated on their overall concept, architecture and design, development and construction, community benefit and environmental impact as well as financing and marketing. (2) BCA refers to the Building and Construction Authority of Singapore. SING HOLDINGS LIMITED 2016 ANNUAL REPORT CHAIRMAN’S 03 MESSAGE and marketing expenses decreased as a result of lower commission, advertising expenses and showflat costs incurred. Increase in other operating expenses was due mainly to maintenance fees and property tax incurred on completed properties and professional fees incurred in conjunction with the acquisition of a hotel in Australia. Our Group’s net asset value rose to $256.7 million or 64.01 cents per share as at end of FY2016. This is a result of the profit reported for the year, partially offset by payment of dividends and fair value loss recorded for investment in quoted equity shares. Subject to the approval by the shareholders at the forthcoming Annual General Meeting, the Board is pleased to recommend a final dividend of 1.0 cent and a special dividend of 0.375 cent per ordinary share, both one-tier tax exempt. BUSINESS REVIEW The Singapore economy grew by 2.0% in 2016, similar to that of 1.9% in 2015. Prices of private residential properties continued to slide by another 3.1% in 2016. The decline in prices was experienced in all regions and ranged from 1.2% to 4.5%. Price indices for commercial properties also fell in 2016. LEE SZE LEONG Chairman Our Group had an exciting year in 2016. We successfully tendered for a land On behalf of the Board of Directors, I am to the preceding year. Revenue was parcel at Fernvale Road for residential pleased to present the annual report of attributable largely to the recognition development. This would be our first Sing Holdings Limited for the financial of sales proceeds from an Executive development project adopting the year ended 31 December 2016 (“FY2016”). Condominium. A write-down of unsold prefinished prefabricated volumetric completed properties amounting to construction method. In addition, our FINANCIAL PERFORMANCE & $3.4 million was made during the year. Group made its maiden foray into the DIVIDEND Other income dropped due to cost Australian property market by acquiring Our Group reported a profit attributable of sales written-back in prior year, its first hotel, Travelodge Docklands. to shareholders of $26.3 million for which arose from cost savings from a With these acquisitions, we believe FY2016, an increase of 29.3% compared completed development project. Sales that our Group will benefit from a SING HOLDINGS LIMITED 2016 ANNUAL REPORT 04 CHAIRMAN’S MESSAGE Robin Residences geographically diversified portfolio Kayu, Sengkang Sports Centre and varying income streams from and Sengkang Riverside Park. The development activities and recurring purchase price of the land is $287.1 investment income. million. The proposed private condominium development shall Our Group’s portfolio comprises the comprise 4 blocks of 22-storey following: buildings with about 735 apartment units. Construction is expected to • Land parcel at Fernvale Road, commence in 2H2017. Our Group has Singapore a 70% interest in this development This is a 99-year leasehold project. property with a gross floor area of about 51,588 square metres. It • Waterwoods, Singapore is situated next to the Thanggam Waterwoods is an Executive LRT station and is easily accessible Condominium development at the via the Tampines Expressway. junction of Punggol Field Walk and The site enjoys close proximity to Punggol East. The development schools and amenities such as The comprises 373 apartment units Waterwoods Seletar Mall, eateries along Jalan spanned across 6 blocks of 17-storey SING HOLDINGS LIMITED 2016 ANNUAL REPORT CHAIRMAN’S 05 MESSAGE buildings. Temporary occupation permit (“TOP”) was obtained in December 2015. Currently, two units remained unsold. The contracted sales value of about $373.2 million has been fully recognised as revenue over the last two financial years. Our Company has a 70% interest in this development project. • Robin Residences, Singapore Robin Residences is a private condominium development along Bukit Timah Road/Robin Road. The development comprises 5 blocks of 5-storey buildings with 134 apartment units. TOP was obtained in December 2015. Approximately 78% of the units were sold on strata basis to individual purchasers, amounting to contracted sales value of about $202.7 million. These sales proceeds were substantially recognised as revenue, together with the corresponding costs, by end of FY2016. In March 2017, our Company entered into a conditional sale and purchase agreement to dispose Travelodge Docklands its entire 100% equity holding in the subsidiary which developed and owned Robin Residences. The Our Company currently owns 46 53,000-seat all-purpose Etihad consideration for the disposal, to strata units in the building with a Stadium, the Melbourne Convention be satisfied entirely in cash, shall saleable area of 48,010 square feet, & Exhibition Centre and the Crown comprise the estimated net tangible of which about 89% are tenanted. Casino. It is also near to many existing assets value of the subsidiary at and upcoming corporate offices. The completion date, adjusted for an • Travelodge Docklands, Australia purchase price of the hotel is AUD107 agreed property value of $72.7 Travelodge Docklands is a freehold, million. The hotel is on a long-term million for the remaining 29 units 14-storey hotel in Docklands, lease to TFE Hotels group, one of and subject to post-completion Melbourne. It comprises 291 Australia’s largest hotel companies adjustments. guestrooms, a food and beverage which operates hotels across outlet, a business centre, meeting Australia, New Zealand and Europe. • BizTech Centre, Singapore rooms and other basic amenities. The BizTech Centre is a light industrial hotel is in the immediate vicinity of building along Aljunied Road, across the Southern Cross Railway Station the upcoming Mattar MRT station. and within minutes’ walk to the SING HOLDINGS LIMITED 2016 ANNUAL REPORT 06 CHAIRMAN’S MESSAGE Robin Residences OUTLOOK APPRECIATION The global economic outlook for 2017 On behalf of the Board of Directors, is mildly optimistic. Although global I would like to thank our valued growth is projected to pick up slightly, shareholders, customers, bankers and uncertainties and downside risks business partners for their continuous remain. Concerns over the future of the support and unwavering trust in European Union, policies of the new us. I would also like to thank my US administration and China’s economic fellow directors for their invaluable conditions continue to affect business contribution and guidance. To our and consumer confidence adversely. management and staff, I would like Against this global backdrop, domestic to express my appreciation for their market sentiments remain cautious and dedication and hard work throughout the Singapore economy is expected to the year. grow at a modest pace of 1.0% to 3.0% in 2017.