Hsin Chong Hits Gross Profit record Of HK$289 million for the six months ended June 30th.
Hsin Chong’s Construction division secured about HK$2.6 billion new orders during the Period, representing an 8% increase over that in the Corresponding Period.” During the Period, a MTR Shatin-Central Link contract to provide advance works for North South Line and two site formation contracts for property development at Ho Man Tin and Causeway Bay of about HK$1 billion were awarded.
The Interiors and Special Projects (“ISP”) division, under the Group’s listed subsidiary – Synergis Holdings Limited, secured over HK$900million worth of contracts, including two commercial building construction contracts at Wong Chuk Hang and Tang Lung Street. With the strong replenishment of new orders, the outstanding workload as at 30 June 2014 exceeded HK
$16 billion (HK$21 billion if including NSC).
As of 30 June 2014, among all contracts on hand, 56% were from Hong Kong Government, public institutions and MTR, including Government & Public Institutions: Water Supplies Department and Drainage Services Department and Urban Renewal Authority; Hong Kong Housing Authority: 5 public housing projects in Anderson Road, Hung Shui Kiu, Tung Chung, Au Tau and Kai Tak The MTR: Express Rail Link contracts, namely, Nam Cheong foundation works, Huanggang to Mai Po Tunnels, West Kowloon Terminus of Express Rail Link superstructure works of Wong Chuk Hang depot of South Island Line and two Shatin-Central Link contracts of railway stations and Tunnels of To Kwa Wan and Sung Wang Toi and Advance Works of North-South Line.
Another 44% were from Macau gaming industry like Venetian and Galaxy and prestigious private clients such as Hysan Group, Kerry Properties and Sino Group.
During the Period, the core business of contracting and property management continued to deliver an improved result signified by:
- Gross Profit recorded HK$289 million, a new high in HsinChong’s history
- Gross Profit Marginincreased by 0.9%
- Operating Profit increased by 17%
In the past three years, the construction division was awarded over HK$29 billion new orders. The division reported revenue of (excl.NSC) HK$3.6 billion with expanded Gross Profit Margin to 6% (2013: 5%) during the Period. Benefiting from the strong overall average gross profit margin as compared with that of the Corresponding Period, a record Gross Profit of HK$219 million was reported. Over 59% Gross Profit of the construction business was contributed by the traditional Building division.