SINGAPORE (July 24): Property developer Tuan Sing Holdings reported earnings of $1.5 million for 2Q19, down 50% from 2Q18.

Revenue for the quarter fell 9% to $73.9 million from a year ago mainly due to lower revenue from industrial services segment, partially offset by higher revenue from property segment.

Gross profit came in 11% lower at $13.8 million in line with lower revenue.

The group also recorded other operating income of $1.3 million in 2Q19 compared to $0.5 million in 2Q18 mainly due to a write-back of corporate guarantee previously recognised of $0.3 million arising from the cancellation of bank facilities by an associate and a discount on acquisition of a subsidiary in Indonesia of $0.4 million.

Administrative expenses for 2Q19 came in 34% lower at $4.4 million mainly due to a write-back on provision of legal costs relating to a development project.

Finance costs for 2Q19 were 31% higher at $13.5 million due mainly to higher interest expense for 18 Robinson.

Share of results of equity accounted investments for the quarter was 37% higher at $6.7 million due to higher attributable net profit of US$11.3 million ($15.4 million) from GulTech.

Income tax expenses more than doubled to $2.3 million from a year ago.

As at June 30, cash and cash equivalents stood at $68.8 million, up $4.9 million from Dec 31, 2018.

In its outlook statement, Tuan Sing expects 18 Robinson and 896 Dunearn Road to generate healthy stream of recurring rental income in the second half of the year.

The group has also embarked on a strategic business transformation to reposition itself from a niche developer to a regional player with commercial, residential and hospitality properties in various gateway cities in the Asia-Pacific, especially Singapore, China, Indonesia and Australia.

Shares in Tuan Sing closed flat at 36 cents on Wednesday.