SINGAPORE: 2015 was a great year for Sing Holdings Limited (SGX: 5IC). The property developer saw its revenue jump by 637% from S$35.8 million in 2014 to S$263.6 million. How did the company manage to do it?
One big contributor would be the Waterwoods executive condominium project in Punggol which Sing Holdings has a 70% interest in. According to the company’s 2015 annual report, 97% of Waterwoods’ units have been issued an option to purchase and the project had brought in S$361.4 million in contracted sales value. In 2015, the company had recognised as revenue, sales proceeds of Waterwoods units that have been served with notice of vacant possession; these units accounted for 42% of all sold units.
Another big contributor would be the private condominium called Robin Residences along Bukit Timah road. It is 100%-owned by Sing Holdings and received its temporary occupation permit (TOP) in December 2015. Sing Holdings had been recognising sales proceeds from the project as revenue based on the progress of construction prior to the receipt of the TOP. With the TOP, the company is recognising sales proceeds fully as revenue upon the execution of sales and purchase agreements. In the annual report, the company stated that around 68% of Robin Residences’ units have been sold, giving rise to S$169.4 million in contracted sales value.
With the contributions from the two properties, Sing Holdings’ revenue surged. The higher top-line boosted the bottom-line – the company’s profit attributable to shareholders managed an impressive spike from just S$43,000 in 2014 to S$20.3 million.
