Thursday, April 15, 2004

Sim Lian Group

Sim Lian Group Posts Over 115% Rise in Net Profit
to $7.1 Million for First Half 2004


Sim Lian Group Posts Over 115% Rise in Net Profit
to $7.1 Million for First Half 2004

SINGAPORE, 25 FEBRUARY 2004 - Mainboard-listed construction and property development company, Sim Lian Group Limited, today announced its results for the half-year ended 31 December 2003. It posted a Group revenue of $81.9 million and profit-before-tax of $9.3 million.

This represents 67.9% increase in profit-before-tax despite a fall of 26.6% in revenue over the corresponding period of the previous year. Group net profit jumped 115.1% to $7.1 million in first half FY2004 compared to $3.3 million in first half FY2003.

The top line decrease was due to a drop in its construction division revenues, owing to a continued slowdown in the local construction sector. The division reported a breakeven for the period under review.

Strong performance by the Group's property development division boosted overall profits. The division saw higher contributions from its three condominium projects The Dew, The Jade and The Pearl @ Mount Faber. This half-year saw maiden contributions from The Pearl @ Mount Faber which saw healthy sales when it was launched in June 2003. The division achieved a good operating profit of $9.6 million.

Commenting on Sim Lian's half-year performance, Group Chairman Kuik Ah Han said, "We are pleased with the performance given the continued slowdown and margin squeeze in both the construction and property sectors. Our property development division is growing steadily, contributing 73% of the Group's first-half revenues and we expect strong contributions from this division in the years ahead."

"Our diversification into property development and making that our second core business has paid off. The synergistic nature of our two core businesses, construction and property development, has allowed us to be highly cost effective in our operations. We see this as an important growth engine for the Group."

About Sim Lian Group

Singapore-based Sim Lian Group Limited is an award-winning construction and property development company listed on the Mainboard of the Singapore Exchange.

Backed by almost 30 years of experience, the Group has built up a strong track record and reputation and has emerged a market leader in the Design & Build residential sector. Sim Lian Construction Co. (Pte) Ltd, the Group's wholly-owned construction arm, is rated an A1 contractor by the Building & Construction Authority which allows it to tender for public sector construction projects of unlimited value.

The Group's portfolio of award-winning projects includes private condominium Melville Park and public housing in Woodlands N5C4 and Bishan West C29. It was also involved in the construction of residential properties like Aquarius by The Park, Palm Gardens and Hillington Green.

The Group's property development arm was set up in 2001 and has since successfully launched three properties - The Dew Executive Condominium and two private condominiums, The Jade and The Pearl @ Mount Faber.

The Group has complementary businesses that include electrical and civil engineering, fabrication and installation of metal works, leasing of mobile sanitation facilities and trading of industrial lubricants.

For more information, contact:
Diana Kuik
Sim Lian Group Limited
Tel: 67603511
Fax: 67696617

Submitted by Tong Siew Wei, Company Secretary on 25/02/2004 to the SGX