Construction group and property developer Tiong Seng Holdings reported a net profit attributable to equity holders of $7.5 million for the third quarter ended 30 September 2010 (3Q2010), down 24% from 3Q2009.

Group revenue rose 7% to $90.0 million due to an increase of $7.6 million in construction contract revenue, which was offset by a decline of $2.3 million in revenue from its development properties. For the first time, the group recorded revenue of $600,000 from direct sales and licensing of Cobiax technology for high-performance lightweight concrete slabs, after acquiring a majority stake in Switzerland-based Cobiax Technologies AG in September this year.

Revenue from Tiong Seng’s construction contracts rose by 10% to $84.8 million due mainly to the increase in work done for Raffles City Shopping Mall, Hilltops, Shelford Suites, The Wharf, Hotel at Upper Pickering Street and The Volari and a decrease in work done for nearly completed and completed projects such as Capella, Tribeca, Wilkie, Sky @ Eleven, Marina Bay Financial Centre Tower 3 and Sentosa Integrated Resorts.

In addition, work done amounting to $19.1 million for newly commenced projects such as Hundred Trees, Tree House and NUS Staff Housing at Kent Vale, have yet to be recognised as revenue.

In China, revenue from completed development properties decreased as the group completed and recognised the profits for the pre-sold units in Tianmen Jinwan Building in Tianjin in March 2009. In line with its accounting policy, all units sold since the commencement of sales in October 2007 till its completion were recognised in 1Q2009.  Revenue in 3Q2010 was therefore derived only from the sale of the remaining completed units.

Based on the share capital of 766,039,750 shares and net of minority interests, the group’s earnings per share for 3Q2010 stood at 0.97 cents. Net asset value per share as at 30 September 2010 was 22.15 cents, up from 17.27 cents as at 31 December 2009.