Hang Yick Holdings Announces Interim Results 2018

Product name:Hang Yick Holdings Announces

2018/11/30 update

Industry:Daily News

Revenue Increased by 13.7% to Approximately HK$98.0 Million;
Declaration of Interim Dividend of HK1.3 Cents per Share

HONG KONG, Nov 29, 2018 - (ACN Newswire) - Hang Yick Holdings Company Limited ("Hang Yick Holdings", together with its subsidiaries collectively known as "the Group") (Stock Code: 1894.HK) is pleased to announce its interim results for the six months ended 30 September 2018 ("the Reporting Period"). For the period, the Group's total revenue was approximately HK$98,043,000 (2017: HK$86,195,000), representing an increase of 13.7% against the same period last year. Increase in revenue for the Reporting Period as compared to the corresponding period in last year was mainly because of more projects, such as certain public housing projects located in Tung Chung, Sha Tin, Sham Shui Po and Kwun Tong, being in the more intensive stage of engineering service (such as steel and metal products installation on site) during the Reporting Period, for which more revenue was recognised as compared to other stages of the engineering service. Hang Yick Holdings was listed on the Main Board of the Stock Exchange of Hong Kong on 12 October 2018.

Provision of steel and metal engineering services and sales of steel and metal products represent the two major core businesses of the Group. Revenue from the provision of steel and metal engineering services increased by approximately HK$27.1 million, or 52.3 %, from approximately HK$52.0 million for the six months ended 30 September 2017 to approximately HK$79.1 million for the Reporting Period. The increase in revenue was primarily due to the progress achieved in projects on-hand. Revenue from the sales of steel and metal products decreased by approximately HK$15.3 million, or 44.7 % from approximately HK$34.2 million for the six months ended 30 September 2017 to approximately HK$18.9 million for the Reporting Period. As a result of the policy implemented by the Hong Kong Housing Authority, the demand of standardised collapsible gates declined, leading to a shift of product mix of the Group to decrease the sales of the said product.

For the Reporting Period, the gross profit of the Group has increased by approximately HK$7.4 million, or approximately 25.5% compared to the corresponding period in 2017, from approximately HK$29.3 million to approximately HK$36.7 million. The gross profit margin was approximately 37.4%, a moderate growth as compared to that of approximately 33.9% from the corresponding period last year. The increase in gross profit and gross profit margin were in line with the increased proportion of revenue from provision of steel and metal engineering services, which has a higher profit margin than the sales of steel and metal products.

Profit for the Period of the Company has decreased by approximately HK$6.8 million or approximately 32.6% compared to the corresponding period last year, from approximately HK$20.9 million to approximately HK$14.1 million. The decrease was primarily due to the non-recurring listing expenses of HK$11.8 million. If the one-off listing expenses are not taken into account, the Group would have an adjusted net profit of HK$26.0 million for the Reporting Period, which represents an increase of HK$5.0 million or 24.0% as compared to the corresponding period.

The Board has recommended the declaration of an interim dividend of HK1.3 cents per share for the six months ended 30 September 2018 (for the six months ended 30 September 2017: nil per share). The interim dividend is expected to be distributed on or around 28 December 2018 to shareholders whose names appear on the Register of Members of the Company as at the close of business on 17 December 2018.

Mr. Lee Pui Sun, Chairman, CEO and Executive Director of the Group said, "Considering the favorable market conditions, our outstanding competitive strengths, and abundant number of projects on hand with considerable contract sum, the Group shall remain cautiously optimistic towards the future. This year, our Group was successfully listed on the Main Board of the Stock Exchange, which not only strengthened our reputation but also brought us stronger motivation. In the future, we shall take proactive actions to seize the opportunities arising from the flourishing market and pursue more projects in different regions, including the mainland of China."

About Hang Yick Holdings Company Limited (Stock Code: 1894.HK)
The Group is a leading steel and metal engineering company in Hong Kong, specializing in design, manufacture, supply and installation of steel and metal products for construction projects in Hong Kong. The Group has been operating for over 25 years. According to the Frost & Sullivan Report, in 2017, the Group was the largest steel and metal engineering company in overall public sector in Hong Kong in terms of revenue with a market share of approximately 31.9% and ranked third in the overall steel and metal works engineering service market in Hong Kong in terms of revenue with an estimated market share of approximately 8.6%. Apart from provision of steel and metal engineering services, the Group also sells steel and metal products, including metal gates, collapsible gates, fire-insulated shutters, sliding shutters, rolling shutters and metal doors, to the customers based on their requirements and specifications. The Group was listed on the Main Board of the Stock Exchange of Hong Kong in October 2018 and its stock code is 1894. HK.

Media Contact
Financial Asia Limited
Keith Lee
Tel: (852) 2522 8051
Email: hangyick@finasia.com.hk



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