S&T Holdings Limited provided preliminary unaudited consolidated group earnings guidance for the six months ended March 31, 2023. For the period, the group expects to record a net profit of not less than approximately SGD 0.2 million as compared to a net loss of approximately SGD 2.8 million for the six months ended 31 March 2022. Based on the information currently available, the Board considers that such turnaround from net loss to profit was mainly attributable to an increase in gross profit and gross profit margin, which was primarily driven by the improvement of cost overrun for ongoing projects due to the easing of COVID-19 pandemic in Singapore and decrease in costs incurred for COVID-19 related controlled safety measures; an increase in other gains and losses, which was primarily driven by an increase in net gain on disposal of property, plant and equipment, which was partially offset by an increase of net foreign exchange losses and net loss on disposal of investment property held under joint operations; and a decrease in administrative expenses, which was primarily driven by a decrease in professional fees, general machineries and motor vehicles expenses and administrative staff costs.

The abovementioned was partially offset by a decrease in other income, which was primarily driven by a decrease in government grants and sundry income.