Hsin Chong local operations see fourfold drop y-o-y

Hsing Chong Group Holdings Limited generated nearly HK$6 billion (US$774 million) in revenue in the first six months of the year, according to its filing on the Hong Kong Stock Exchange.
Excluding the group’s contract work on Phase II of Galaxy the group’s total revenue reached HK$5.79 billion, a year-on-year decrease of 0.4 per cent, while including contract work it reached HK$6 billion.
During the period the group was engaged in projects that were split between 50 per cent of the public sector and MTR [Mass Transit Railway] works and 50 per cent in private clients divided between ‘prestigious property developers’ and Macau gaming operators.
These include: The Venetian, Galaxy and SJM as well as Kerry Properties, New World, Swire Properties and Lai Sun Group. As of the end of the first half of the year the group had an outstanding workload exceeding HK$18 billion.
‘We have been a major player in Macau’s infrastructural development, and look forward to participating further with the award of more substantial new contracts,’ notes the group in its filing.
With the city’s planned total residential supply, the company says it “secures the business volume of Construction Industry in the coming decade’.
When analysed by geographical segment, the revenue from the group’s Macau operations, despite only amounting to 13.3 per cent of the group’s overall unaudited revenue, reached some HK$793.9 million during the six-month period.
This, however corresponds to nearly a fourfold drop in revenue from the local segment, as compared to HK$3.2 billion seen in the previous year – which made up 40.3 per cent of the group’s overall revenue, trailing Hong Kong’s HK$4.7 billion in revenue during the first six months of 2015.
The group’s Hong Kong operations contributed 84.7 per cent of the group’s revenue during the six-month period, reaching HK$5.04 billion.
Construction dominates
The reportable operating segments of the company comprise building construction, civil engineering, interiors & special projects, electrical and mechanical engineering, property and facility management services and property development and investment.
A total of HK$3.23 billion in revenue was earned by the construction side of the business during the period, equalling a profit before taxation of HK$111.6 million. This, however was overshadowed by the group’s Property Development and Investment segment, which brought in the largest profit for the group during the period, at HK$400.4 million.
Total profit for the group during the first six months of the year amounted to HK$382.5 million, just 18.4 per cent of the group’s profit from the corresponding period in 2015.
The group’s third largest contributor in terms of profit was its Electrical and Mechanical segment, accounting for HK$36.96 million in profit during the period, while racking up HK$461.5 million in revenue.
High performing segments in terms of revenue were the group’s Interiors and Special Projects arm earning HK$808.7 million, Civil Engineering at HK$880.2 million, Electrical and Mechanical at HK$461.5 million, and Property Facility and Management at HK$361.8 million.
Revenue from the group’s Galaxy Phase II operations reached HK$162.5 million during the period as compared to HK$2.16 billion seen in the same six-month period last year.