TTJ Holdings

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UNAUDITED FINANCIAL STATEMENTS AND RELATED ANNOUNCEMENT FOR THE FIRST QUARTER ENDED 31 OCTOBER 2019

A commentary at the date of announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months.

As at 4 December 2019, T T J’s projects order book stands at $161 million with projects expected to be substantially completed between FY2020 and FY2022.

The Ministry of Trade and Industry Singapore (“MTI”) published its Singapore economy outlook report on 21 November 2019. Taking into account the global and domestic economic environment, MTI expects growth in the Singapore economy to pick up modestly in 2020 as compared to 2019. MTI also projects growth in the construction sector to be sustained in 2020.
Notwithstanding these projections, the Group expects the operating environment to remain challenging given that competition, margin pressures and collection risks in the construction industry have intensified. The Group will continue its proactive and prudent approach to mitigate these headwinds.

To date, the Group continues to receive a good mix of project enquiries from the public and private sectors. It intends to carefully evaluate potential projects to manage its risks.

The waste management and treatment business is relatively new and the Group is in the process of developing this business. The wood pellet manufacturing facility in Thailand recently completed an upgrading which has improved its efficiency and productivity. Production at the manufacturing facility in Thailand is expected to commence in 2QFY2020. The construction of a new-build wood pellet manufacturing plant in Singapore is in progress and is expected to enhance the Group’s production of wood pellet manufacturing upon completion. The Board will continue to update shareholders as and when there are material developments in this business.