BHCC HOLDING (01552): The group has established property development as one of its main business divisions.

BHCC HOLDING (01552) announces that the group has established property development business as one of its main business segments. As disclosed in the announcement and circular of Tai Seng Food Point, the company has entered into property development business through acquisitions, aiming to strategically leverage the group's existing resources to capture new opportunities in Singapore's flourishing property market and diversify the group's sources of income. Since the acquisition, the group has been actively seeking new opportunities in the Singapore property market and exploring tender opportunities for various land uses with other market participants. For details on the tenders submitted by the group, please refer to the announcements dated July 18, 2024, September 19, 2024, October 1, 2024, and October 22, 2024. Recently, the group signed a joint venture agreement with other market participants to establish a joint venture for leasing and developing a residential land located at Dairy Farm Walk in Singapore. This marks the group's second major real estate development project in which the group will further expand its property development business and diversify its development portfolio. For details on the establishment of the joint venture, please refer to the announcement dated January 24, 2025. Looking ahead, the group will continue to develop its property development segment and identify suitable property development opportunities in a timely manner. With the establishment of the property development segment, the group currently consists of three business segments, namely (1) construction and engineering; (2) property investment; and (3) property development, and relevant segment information will be reflected in the company's future financial performance announcements and reports. Food Point @ Tai Seng Redevelopment Project Tai Seng Food Point is currently a non-wholly-owned subsidiary of the company, the sole owner of all strata units and common properties in the development project located at 50 Playfair Road in Singapore. The property is an industrial land, currently being redeveloped into a modern food processing facility and planned to be marketed as a strata sales property in the market, the redevelopment project will be named Food Point @ Tai Seng. As of the date of this announcement, Food Point @ Tai Seng is in its early stages of construction, according to the preliminary construction plan, it is expected that the project will obtain a temporary occupation permit in 2027 and a statutory completion certificate in 2028. In addition, the board is pleased to announce that Food Point @ Tai Seng has obtained approval from the Housing Development Board of Singapore in January 2025 to pre-sell unfinished units, and plans to launch the pre-sale of Food Point @ Tai Seng in mid-February 2025. The unfinished units will be offered to interested buyers in the form of purchasing options, and the board is not aware, believes, and after making all reasonable inquiries, no related parties of the company will make an offer to purchase Food Point @ Tai Seng. Applicable Property Development Accounting Policies The costs of developing properties include direct costs related to development, such as land and construction costs, as well as costs attributable to development activities that can be allocated to the development project. As of December 31, 2024, the group has recorded capitalized costs related to developing properties in its statement of financial position because the group has not yet entered into contract arrangements with customers. In accordance with IFRS 15 Revenue from Contracts with Customers, sales revenue from developed properties will be recognized when the group satisfies its performance obligations, which can be satisfied at a specific point in time or over time based on contract arrangements with customers. The amount of revenue recognized should reflect the consideration that the group expects to be entitled to in exchange for transferring the promised goods or services to the customer.