Revenue Rose by 30.3% to MOP288 million
Gross Profit Increased by 22.7% to MOP73.9 million
HONG KONG, March 27, 2017 /PRNewswire/ -- Lai Si Enterprise Holding Limited ("Lai Si Enterprise" or the "Group) (SEHK stock code: 2266), a leading commercial fitting-out contractor in Macau, announced its annual results for the year ended 31 December 2016.
As a leading commercial fitting-out contractor in Macau, the Group undertakes fitting-out works as an integrated contractor, and also provides construction services, repair and maintenance works as a main contractor. For the year ended 31 December 2016, the Group recorded revenue of MOP288 million, representing an increase of 30.3% year-on-year, primarily due to the increase in fitting-out works and construction services which respectively surged by 29.1% and 342%. Gross profit grew to MOP73.9 million, representing an increase of 22.7% year-on-year. Excluding one-off listing expenses, adjusted profit attributable to owners of the Company was MOP44.3 million, representing a year-on-year increase of 7.1%. Basic earnings per share was MOP10.1 cents.
Fitting-out works
The Group's fitting-out services include shop drawing, procurement of materials, execution of fitting-out works, site supervision, management of subcontractors and overall project management. The fitting-out projects undertaken by the Group can be broadly classified according to the types of customers, including hotels and casinos, retail shops and restaurants, etc. During the year, revenue of fitting-out works contributed to 97.3% of total revenue, or MOP280 million. The increase was mainly attributable to the growth in revenue from hotel and casino and retail shop and restaurant, which increased by 27.2% and 33.6% respectively. The gross profit increased by 22.8% to MOP71.7 million.
Construction works
The Group's construction services include general construction and heritage conservation. A construction project generally involves demolition works, building construction works, including foundation works, and buildings services systems installation. During the year, revenue of construction works increased significantly by 342% year-on-year to MOP5.7 million, mainly due to the rapid growth of heritage conservation which amounted to MOP4.4 million. The gross profit of construction works increased to MOP1.1 million while the gross profit margin improved by 13.5 percentage points to 19.3%.
Repair and Maintenance works
Repair and maintenance services provided by the Group involve repair or replacement of interior decorative parts such as light bulbs and fixtures, as well as repair and maintenance works for building services systems. Customers of this segment mainly include operators of hotels and casinos, retail shops and restaurants. During the year, revenue of repair and maintenance works was MOP1.94 million.
Mr. Lai Ieng Man, Chairman of the Board and Executive Director of Lai Si Enterprise concluded, "We are prudently optimistic about the future of fitting-out industry in Macau and Hong Kong. The completion of the Hong Kong - Zhuhai - Macau Bridge in the coming years is anticipated to drive a speedy growth in the fitting-out industry in Macau. Regarding the fitting-out market in Hong Kong, it has benefited from the steady economic growth and the growing property market, which will further simulate the demand for fitting-out services. At the beginning of 2017, the Group was successfully listed on the main board of The Stock Exchange of Hong Kong Limited ("HKEx"), which provided Lai Si with access to international capital market, and is conducive to developing business, enhancing customers' confidence, strengthening competitiveness and expanding the scope of business. Looking ahead, we will proactively capitalize on the market growth, reinforce the Group's leading position and enhance its competitiveness in the fitting-out and construction industries in Macau. The Group will also aim to increase market share in Hong Kong so as to enhance shareholder return."
About Lai Si Enterprise Holding Limited
Lai Si Enterprise Holding Limited is a leading commercial fitting-out contractor in Macau. Its major businesses cover services of fitting-out works as an integrated fitting-out contractor, construction works as a main contractor and repair and maintenance works, mainly in Macau. According to Frost & Sullivan, in terms of revenue, the Group was the second largest commercial fitting-out contractor in Macau in 2015, with a market share of approximately 6.1%. The fitting-out projects undertaken by the Group can be broadly classified according to the types of customers, including hotels and casinos, retail shops and restaurants, etc. The Group's construction services include general construction and heritage conservation. The Group also provides repair and maintenance services for existing properties in Macau on ad-hoc basis and regular basis over a fixed period.
