Optimistic on outlook for construction industry in 2014 although profits rose a mere 3 pc
Profit attributable to shareholders rose just three percent despite turnover jumping by nearly a third,
all this in a buoyant period for the construction industry. Not exactly a stellar performance.
Profit attributable to shareholders for the year to 31 December 2013 was HK$ 185 . million, representing an increase of 3 percent compared with a year earlier. n 2013, both revenue and gross profit from the construction business achieved new highs, mainly due to the continuously strong order book. The company said that it was confident in its ability to deliver with new contracts valued over $10,000 million being awarded during the year with its outstanding workload at the end of the year hitting the $17,000 million mark ($24,600 million including NSC), which was a new record in the company’s history.
Hsin Chong’s traditional building division continued to be the main contributor to its financial results.
During 2013 the company secured new contracts of HK$10.2 billion of which HK7.6 billion was from the building construction division, with their clients including the Hong Kong Housing Authority, where it was awarded two public housing projects worth a total of HK$3.3 billion during the year.
It’s partnership with the government and public institutions remaining strong it was awarded building and electrical and mechanical constructs for the Tin Shui Wai Hospital worth HK$1.9 billion.
With Macau continuing to be a cash cow, the company was awarded a new construction management contract for the Venetian Sands Cotai Tower and three contracts of Galaxy Resort and Casino including site formation and architectural building works and finishes package.
More projects are in the pipeline as the group secured two new contracts worth HK$700 million including a site formation contract for a proposed residential development at HO Man Tin and an MTR contract for advanced works on the North South Line for Shatin Central link.
The company remains optimistic for 2014 and beyond, noting that the Government’s commitment to certain mega sized infrastructure projects and public housing projects and Stating that
Our core construction business matched with our talented and specialised capabilities position us to capture these opportunities
With Urbanization being pursued at a frenzied pace on the main land the company is also pursing to expand its property portfolio by striving to become a leading brand in the China real estate market.