Hock Lian Seng Holdings Limited

80 Marine Parade Road #21-08 Parkway Parade Singapore 449269 Tel: (65) 6344 0555 Fax: (65) 6440 9049 Company Registration Number 20090890E

FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2010

PART I : Information required for announcement of Full Year Results

1(a)(i) An Income Statement (for the group), together with comparative statements for the corresponding period of the immediately preceding financial year. Results for the financial year ended 31 December 2010:

Group Financial year ended 31/12/2010 S$000 Revenue Cost of sales Gross profit Other income Administrative costs Other operating costs Profit before taxation Tax expenses Profit for the year Attributable to: Equity holders of the Company 229,020 (198,931) 30,089 7,830 (5,309) (178) 32,432 (5,412) 27,020 31/12/2009 S$000 224,800 (196,975) 27,825 4,258 (5,102) (1,002) 25,979 (4,702) 21,277 Change

% 1.9% 1.0% 8.1% 83.9% 4.1% -82.2% 24.8% 15.1% 27.0%

27,020

21,277

27.0%

Consolidated statement of comprehensive income

Group Financial year ended 31/12/2010 31/12/2009 S$000 S$000 21,277

Profit for the year Other comprehensive income: Available-for-sale financial assets - Net (loss)/gain on fair value changes - Reclassification adjustment arising from the disposal of the investment securities Foreign currency translation
Realisation of reserve upon liquidation of branch

27,020

(223) (4,017)

5,286
(1,000)

(4,240)

189

Other comprehensive income for the year Total comprehensive income for the year Attributable to:
Equity holders of the Company

4,475 25,752

22,780

22,780

25,752

1(a)(ii) Notes to the Income Statement The Groups profit before taxation is arrived at after charging / (crediting) the following:
Group Financial year ended 31/12/2010 31/12/200 9 S$000 S$000

Depreciation of property, plant and equipment Loss/(gain) on foreign exchange Gain on disposal of property, plant and equipment Gain on disposal of investment securities Impairment loss on investment securities Loss on liquidation of a branch Allowance for doubtful receivables Write back of allowance for doubtful receivables Interest income Interest expense Gross dividend income from investment securities Fair value changes on investment properties Write back of provision on fine for GST incorrect declaration Fair value changes on investment securities Propery, plant and equipment written off

1,328 10 (627) (4,017) (12) (650) 1 (72) (1,086) (390) (64) -

849 (498) (633) (1,000) 25 294 56 (2) (498) (332) (130) -

56

Page 2 of 14

1(b)(i) A balance sheet (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year.
Group 31.12.2010 31.12.2009 S$000 Non-current assets Property, plant and equipment Subsidiary companies Investment properties Investment securities (non-current) Deferred tax assets Current assets Inventories Contract work-in-progress Trade receivables Other receivables Prepayments Investment securities (current) Cash and short term deposits Pledged fixed deposits 9,434 10,321 2,009 21,764 6,431 17,341 2,398 12 3,270 165,490 202 195,144 S$000 8,377 930 2,010 715 12,032 116 6,427 16,548 5,824 5,817 8,273 143,534 202 186,741 Company 31.12.2010 31.12.2009 S$000 34,814 34,814 8,820 24,690 33,510 S$000 34,814 34,814 1 9,844 23,541 33,386

Current liabilities Trade and other payables Obligations under hire purchase contracts Progress billings in excess of work-inprogress Advance payment received from customer Provisions Provision for taxation

38,612 84 78,007 5,402 4,697 126,802 68,342

37,470 61,120 16,164 4,597 5,132 124,483 62,258

257 10 267 33,243

1,322 5 1,327 32,059

Net current assets Non-current liabilities Deferred tax liabilities Obligations under hire purchase contracts

673 72 745

59 59 74,231

68,057

66,873

Net assets Equity Share capital Capital reserve Accumulated profits Fair value adjustment reserve Merger deficit Total equity

89,361

58,956 1,000 45,644 (16,239) 89,361

58,956 1,000 26,274 4,240 (16,239) 74,231

58,956 9,101 68,057

58,956 7,917 66,873

Page 3 of 14

1(b)(ii) Aggregate amount of groups borrowings and debt securities.

Amount repayable in one year or less, or on demand

As at 31 December 2010 Secured Unsecured (S$000) (S$000) 84 -

As at 31 December 2009 Secured Unsecured (S$000) (S$000) -

Amount repayable after one year

As at 31 December 2010 Secured Unsecured (S$000) (S$000) 72 As at 31 December 2009 Secured Unsecured (S$000) (S$000) -

Details of collateral: The above borrowings of the Group relate to hire purchase creditor secured by way of rights to the leased asset under the agreement.

Page 4 of 14

1 (c )

A cash flow statement (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year.
< ------------Group----------- > Financial year ended 31-Dec-10 31-Dec-09 S$000 32,432 1,328 (12) (627) (1,086) (64) (4,017) (650) 1 (72) 27,233 116 (4) (781) 3,271 5,805 155 (2,906) 21,741 (16,164) 38,466 650 (4,518) 34,598 S$000 25,979 849 (2) 56 (633) 25 (130) (1,000) 294 860 (498) 1,000 56 (332) 26,524 (39) (427) 4,855 (3,583) (3,080) 5,479 44,848 6,486 81,063 498 (4,756) 76,805

Cash flows from operating activities Profit before taxation Adjustments : Depreciation of property, plant and equipment Write-back of allowance for doubtful receivables Allowance for doubtful receivables Gain on disposal of property, plant and equipment Impairment loss on investment securities Fair value changes on investment properties Fair value changes on investment securities Gain on disposal of investment securities Loss on liquidation of a branch Transaction costs of listing shares Interest income Interest expense Share-based compensation expenses Property, plant and equipment written off Dividend income from investment securities Operating cash flows before working capital changes Decrease/(increase) in inventories Decrease in contract work-in-progress (Increase)/decrease in trade receivables Decrease/(increase) in other receivables Decrease/(increase) in prepayments Decrease in amount due from a joint venture (Decrease)/increase in trade and other payables Increase in progress billings in excess of work-in-progress (Decrease)/increase in advance payment received from customer Cash flows generated from operations Interest received Income tax paid Net cash flows generated from operating activities Cash flows from investing activities Purchases of property, plant and equipment Construction of investment property Purchases of investment securities Proceeds from disposal of investment securities Proceeds from disposal of property, plant and equipment Net cash outflow on liquidation of a branch Dividend income received from investment securities Net cash flows used in investing activities Cash flows from financing activities Dividend paid Payments of transaction costs of listing shares Decrease in fixed deposits, pledged Repayment of obligations under finance lease Proceeds from issue of shares Net cash flows (used in)/generated from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year

(2,473) (8,305) (3,205) 8,049 885 72 (4,977)

(5,091) (7,102) 2,154 683 (66) 332 (9,090)

(7,650) (15) (7,665) 21,956 143,534 165,490

(12,600) (1,835) 11,631 27,500 24,696 92,411 51,123 143,534

Page 5 of 14

1(d)(i) A statement (for the issuer and the group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalization issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year.
Statement of changes in equity
Group
Share capital S$000 58,956 58,956 16,800 15,631 27,500 (975) 58,956 Capital reserve S$000 1,000 1,000 1,000 1,000 Accumulated profits S$000 26,274 27,020 (7,650) 45,644 17,597 21,277 (12,600) 26,274 Fair value adjustment reserve S$000 4,240 (4,240) (46) 4,286 4,240 Foreign currency translation reserve S$000 (189) 189 Merger Deficit S$000 (16,239) (16,239) (608) (15,631) (16,239) Total equity S$000 74,231 22,780 (7,650) 89,361 33,554 25,752 (12,600) 27,500 1,000 (975) 74,231

At 1 January 2010 Total comprehensive income Dividend on ordinary shares At 31 December 2010

At 1 January 2009 Total comprehensive income for the year Dividend on ordinary shares * Adjustment arising from restructuring exercise Issuance of new shares pursuant to the IPO Employees share-based expense Share issuance expense At 31 December 2009

*Note: Interim dividend for FY2009 was declared and paid prior to the restructuring exercise for the initial public offering (IPO).

Company Share capital S$000

At 1 January 2010 Total comprehensive income Dividend on ordinary shares At 31 December 2010 At 20 May 2009 (date of incorporation) Total comprehensive income Issuance of new shares on acquisition of a subsidiary company Issuance of new shares pursuant to the IPO Shares issuance expense At 31 December 2009 58,956 58,956 * 32,431 27,500 (975)

Accumulated profits S$000

7,917 8,834 (7,650) 9,101 7,917 -

Total equity S$000

66,873 8,834 (7,650) 68,057 7,917 32,431 27,500 (975)

58,956

7,917

66,873

* Share capital is less than S$1,000.

Page 6 of 14

1(d)(ii) Details of any changes in the companys share capital arising from right issue, bonus issue, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State also the number of shares that may be issued on conversion of all the outstanding convertibles as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year.
Number of shares Issued and fully paid shares as at 31 December 2009 and at 31 December 2010 Issued and paid-up capital (S$) 58,955,729

509,978,991

There were no changes in the Companys share capital for the financial year ended 31 December 2010. There were no outstanding treasury shares as at 31 December 2010.

1(d)(iii) To show the total number of issued shares excluding treasury shares as at end of the current financial period and as at the end of the immediately preceding year.
As at 31 December 2010 2009 Total number of issued shares (excluding treasury shares) 509,978,991 509,978,991

1(d)(iv) A statement showing all sales, transfers, disposals, cancellation and/or use of treasury shares as at the end of the current financial period reported on.
Not applicable.

2.

Whether the figures have been audited or reviewed, the auditors report (including any qualifications or emphasis of a matter).
The figures have not been audited or reviewed.

3.

Where the figures have been audited or reviewed, the auditors report (including any qualifications or emphasis of a matter).
Not applicable.

4.

Whether the same accounting policies and methods of computation as in the issuers most recently audited annual financial statements have been applied.
The Group has applied the same accounting policies and methods of computation in preparation of financial statements for the current reporting period compared with the audited financial statements as at 31 December 2009, except for the adoption of the Financial Reporting Standards (FRS) and INT FRS that are mandatory for financial years beginning on or after 1 January 2010. The adoption of these FRS and INT FRS has no significant impact on the financial statements.

Page 7 of 14

5.

If there are any changes in the accounting policies and methods of computation , including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change.
The Group has adopted all the applicable new/revised Financial Reporting Standards (FRS) that become effective for accounting periods beginning on 1 January 2010. The adoption of these new/revised FRS did not result in any change of the Groups accounting policies or any significant impact on the financial statements.

6.

Earnings per ordinary share of the group for the current financial period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends.
Earnings per share (EPS) Group
Financial year ended 31/12/2010 31/12/2009 Earnings per ordinary shares for the year based on profit attributable to shareholders (i) Basic earnings per share (cents) - Weighted average number of ordinary shares in issue for basic earnings per share (ii) Diluted earnings per share (cents) - Weighted average number of ordinary shares in issue for diluted earnings per share 5.3 509,978,991 5.3 509,978,991 5.3 403,294,059 5.3 403,294,059

Note:
In respect of FY2009, the weighted average number of ordinary shares was computed assuming 399,978,991 issued shares from 1 January 2009 to 20 December 2009 and 509,978,991 issued shares (taking into account the 110,000,000 new shares issued pursuant to the IPO) from 21 December 2009 (being the date of listing on the Mainboard of SGX-ST) to 31 December 2009.

7.

Net asset value (for the issuer and group) per ordinary share based on issued share capital of the issuer at end of the : current financial period reported on; and immediately preceding financial year.

(a) (b)

Net asset value (NAV)

Group As at 31.12.2010 31.12.2009 NAV per ordinary share (cents) Number of shares used in computation of NAV per share 17.5 509,978,991 14.6 509,978,991

Company As at 31.12.2010 31.12.2009 13.3 509,978,991 13.1 509,978,991

Page 8 of 14

8.

A review of the performance of the group, to the extent necessary for a reasonable understanding of the groups business. It must include a discussion of the following:
(a) (b) any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors; and any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on.

FY 2010 compared with FY 2009 Performance and segmental review

Revenue (in million) Civil Engineering Building Material Others FY2010 221.5 6.9 0.6 229.0 % 96.7 3.1 0.2 100.0 FY2009 210.8 14.0 224.8 % 93.8 6.2 100.0

For the year ended 31 December 2010, revenue increased by $4.2 million (1.9%) to $229.0 million from $224.8 in 2009 mainly due to higher progress claims recognized from Civil Engineering segment with the construction activities of Marina Coastal Expressway and Jalan Gali Batu Depot projects picking up substantially in 2010. Building material segment recorded a significant drop in revenue as much lower volume was delivered compared to last year. Others include rental revenue from workers dormitory. Gross Profit (in million) Civil Engineering Building Material Others FY2010 30.9 (0.6) (0.2) 30.1 FY2009 22.6 5.2 27.8

Gross profit increased by $2.3 million (8.1%) to $30.1 million from $27.8 million. The increase in gross profit was attributable to the increase in revenue and better profit margin from the civil engineering segment with the better margin from new projects and finalization of projects for the current financial period. Building material segment was operating in a challenging environment as material cost spiked at the last quarter of the year which has caused the segment to suffer a loss for the current financial year. The workers dormitory has just commenced its operation in November, therefore the loss was mainly due to the initial set up cost. Other income increased by $3.5 million to $7.8 million from $4.3 million. This was mainly due to the higher gain of $3.0 million from sales of investment securities, $1.0 million fair value gain on the investment properties in view of the fair value gain recognized from the worker dormitory, the write back of an excess provision on fine for incorrect GST declaration for import value of $0.4 million, offset by the lower dividend income of $0.3 million with the disposal of the investment securities, non recurrence of gain on foreign exchange of $0.5 million recognized in FY2009 arising from the liquidation of the fixed deposit in Australian dollar. Administrative expenses increased by $0.2 million to $5.3 million from $5.1 million in 2009, The increase was mainly attributed to the higher accrual for performance bonus due to the better result. Other operating costs decreased by $0.7 million mainly due the loss on liquidation of Taiwan branch of $0.3 million and provision on penalties and fines of $0.4 million booked in 2009, while no such cost were incurred in 2010.

Page 9 of 14

Profit before taxation increased by $6.4 million to $32.4 million from $26.0 million. The increase was due to an increase in gross profit of $2.3 million and other operating income of S$3.5 million, lower other operating expenses of $0.8 million and partially off set by the increase in administrative expenses of $0.2 million.

Financial Position Review

The increase in non-current assets as at 31 December 2010 by $9.7 million to $21.7 million was mainly due to completion of the workers dormitory which was valued at $9.1 million and the increase of property, plant and equipment of S$1.1 million, partially offset by the utilisation of deferred tax asset of $0.7 million. The Groups current assets increased by $8.4 million to $195.1 million. This was mainly due to the higher cash balance of $22.0 million and increase in trade receivable of $0.8 million, partially offset by the lower investment securities in quoted shares of $5.5 million and utilization of the prepayments to suppliers of $5.8 million. The average trade receivable turnover days remained stable at about 30 days. The Groups current liabilities increased by $2.3 million to $126.8 million. This was mainly due to the increase in progress billings in excess of work-in-progress of $16.9 million and higher trade and other payable of $1.1 million, increase in provisions of $0.9 million due to the provision for the higher material cost for the remaining contractual volume for the building material segment, partially offset by the utilisation of advance payment received from customer by $16.2 million relating to Marina Coastal Expressway and Jalan Gali Batu Depot Projects against the claims certified for the year.

Cash Flow Review

As at 31 December 2010, the Group had a cash position of $165.5 million, the net increase in cash and cash equivalents from last financial year end was $22.0 million, mainly due to the good business performance and positive cash flow from the ongoing projects which has generated strong cash inflow from operating activities amounted to $34.6 million. Net cash used in investing activities was $5.2 million due to construction cost for the investment property of $8.3 million, acquisition of investment securities and property, plant and equipment of $3.2 million and $2.5 million respectively, partially offset by the proceeds from the sales of investment securities and disposal of plant and equipment of $0.9 million. Net cash used in financing activities was $7.7 million due to the payment of the final dividend proposed for FY2009.

9.

Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results.
There has not been any forecast previously disclosed to the shareholders.

10.

A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the group operates and any know factors or events that may affect the group in the next reporting period and the next 12 months.
As at 31 December 2010, the Groups order book for on-going projects was approximately $350 million which was mainly relating to the balance of work for Jalan Gali Batu Depot and Marina Coastal Expressway projects. The Group will continue to execute the projects on hand and bid for infrastructure projects in the pipeline. The outlook for the construction industry for the public sector is positive, however, the market is very competitive.
Page 10 of 14

The Groups newly completed workers dormitory for 3,000 headcount is now operating in full rd capacity and mainly leased out to 3 parties. The Group expects the dormitory to contribute positively to group result. The Group will also explore other business opportunities in property related segment to further enhance the shareholders value.

11.

Dividend (a) Current Financial Period Reported On Any dividend declared for the current financial period reported on ?
Yes
Name of dividend Dividend type Dividend amount per share (in cents) Tax rate Proposed first and final Cash 1.625 cents per ordinary shares Tax exempt (one tier)

The above proposed dividend is subject to shareholders approval at the Annual General Meeting.

(b)

Corresponding Period of the immediately Preceding Financial year Any dividend declared for the corresponding period of the immediately preceding financial year ?
Yes

Name of dividend Dividend type Dividend amount per share (in cents) Tax rate

First and final Cash 1.5 cents per ordinary shares Tax exempt (one tier)

(c)

Date payable
The proposed first and final dividend, if approved at the next Annual General Meeting to be held on 27 April 2011, will be paid on 26 May 2011.

(d)

Books closure date

The Share Transfer Books and Register of Members of Hock Lian Seng Holding Limited (the Company) will be closed on 12 May 2011.

12.

If no dividend has been declared/recommended, a statement to that effect.

Not Applicable.

Page 11 of 14

PART II ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT 13. Segmented revenue and results for business or geographical segments (of the group) in the form presented in the issuers most recently audited annual financial statements, with comparative information for the immediately preceding year.
By business segments
Group Civil Engineering $000 221,496 Building Materials $000 6,908 Others Adjustments Total $000 616 229,020

FY2010 Revenue Results Depreciation Dividend income from investment securities Fair Value (gain)/loss on investment property Interest income Segment profit Assets Addition to non-current asset Segment assets Segment liabilities

1,283

45

(836)

72 (250) 650 1,507

1,328 72 (1,086) 650 32,432

30,928

(592)

589

2,643 198,377 118,642

2,806 1,266

9,141 9,266 2,269

6,459 5,370

11,784 216,908 127,547

FY2009 Revenue Results Depreciation Dividend income from investment securities Fair Value (gain)/loss on investment property Interest income Segment profit Assets Additions to property, plant and equipment Segment assets

210,771 796

14,029 53

332 (130) 498 (1,847)

224,800 849 332 (130) 498 25,979

22,620

5,206

4,773 183,217

318 3,629

11,928

5,091 198,773

Segment liabilities

117,597

1,754

5,191

124,542

Page 12 of 14

14.

In the review of performance, the factors leading to any material changes in contributions to turnover and earnings by the business or geographical segments
Please refer to paragraph 8.

15.

A breakdown of sales as follows:< ----------- Group ------------- > Financial Year ended 31 Dec 2010 2009 S$000 S$000 118,725 109,032 15,201 110,295 11,819 9,392 115,768 11,885 Increase/ (Decrease) (%) 8.9% 6.2% -4.7% -0.6%

(a) (b) (c) (d)

Sales reported for first half year Operating profit/loss after tax before deduction minority interests reported for first half year Sales reported for second half year Operating profit/loss after tax before deduction minority interests reported for second half year

16.

A breakdown of the total annual dividend ( in dollar value) for the Issuers latest full year and its previous full year.
Latest Full Year FY2010 Proposed first and final dividend (Tax exempt 1tier) 8,287,159 Previous Full Year FY2009 7,649,685

17.

Interested Person Transactions

Name of Interested Person Aggregate value of all interested person transactions during the financial year under review (excluding transactions less than S$100,000 and transactions conducted under shareholders mandate pursuant to Rule 920) $000 214 Being payment for office lease expense Aggregate value of all interested person transactions conducted under shareholders mandate pursuant to Rule 920 (excluding transactions less than S$100,000) $000 Nil

Lian Seng Investment Pte Ltd

Page 13 of 14

18.

Update on use of IPO proceeds

The Company was admitted to the Official List of the SGX-ST on 21 December 2009 and raised a net proceeds of $25.7 million. As at the date of this report, the Group has not utilized the net proceeds.

BY ORDER OF THE BOARD CHUA LEONG HAI Executive Chairman and CEO 22 February 2011

The initial public offering of the Companys shares was sponsored by United Overseas Bank Limited (the Issue Manager). The Issue Manager assumes no responsibility for the contents of this announcement.

Page 14 of 14