Hock Lian Seng Holdings posted a net loss of S$54.0 million for the six months ended Jun 30, reversing from a profit of S$8.7 million a year earlier, as revisions to cost estimates on two major rail projects pushed the construction arm into the red and group revenue halved year-on-year.

Basic loss per share came in at 10.53 Singapore cents, against earnings of 1.68 cents in 1H 2025. The company paid a final dividend of 1.125 cents per share for FY 2025 (FY 2024: 1.8 cents) in May and, consistent with past practice, did not declare an interim payout.

Group turnover fell 50.9 per cent to S$50.7 million. Civil engineering remained the core contributor at S$47.1 million, down sharply from S$90.1 million, while property development revenue slid to S$3.5 million from S$13.1 million as fewer units at Shine@TuasSouth were sold. Rental income from investment properties was stable at about S$0.1 million.

By segment, the civil engineering business recorded a pre-tax loss of S$53.3 million after the group recognised additional onerous contract provisions tied to the Serangoon North (CR113) and Aviation Park (CR103) Cross-Island Line stations. Property development generated a pre-tax profit of S$2.5 million, and the investment property division was marginally positive.

Other income declined 45.5 per cent to S$3.0 million, reflecting lower rental streams from unsold industrial units and reduced interest income. Administrative expenses rose 20 per cent to S$2.8 million on higher staff costs.

The order book for civil engineering stood at about S$323 million at end-June, comprising mainly the two Cross-Island Line contracts. Management indicated it will adopt a more selective bidding approach and incorporate inflationary and labour-related pressures in cost estimates. On the property side, the group is progressing with the design of its Pioneer Road industrial project, with construction slated to start in the third quarter of 2026 and a launch targeted for the first half of 2027.