HONG KONG, Aug 11, 2017 - (ACN Newswire) - Winson Holdings Hong Kong Limited ("Winson" or the "Group"; stock code: 8421), a Hong Kong-based service provider specialising in environmental hygiene services and airline catering support services, has announced its unaudited quarterly results for the three months ended 30 June 2017 ("2017" or the "Period under Review").
During the Period under Review, the Group's primary business activities, namely environmental hygiene service and related services and airline catering support services continued to perform favourably, with the combined revenue from the two businesses rose by approximately 7.2% year on year to approximately HK$122.1 million. Despite facing greater labour cost pressure in Hong Kong, the Group managed to achieve satisfying results with a year on year increase in gross profit of approximately 7.0% to approximately HK$17.8 million, with gross profit margin standing at approximately 14.6%. Profit for the Period under Review amounted to approximately HK$4.6 million (2016: approximately HK$1.6 million, after deduction of listing expenses), while net profit margin was approximately 3.8% as compared to that approximately 1.4% for the three months ended 30 June 2016. The Group remained in a healthy financial position as at 30 June 2017, with cash and cash equivalents of approximately HK$57.9 million.
During the Period under Review, the Group continued to draw on its industry experience and expertise to consolidate its leadership in the environmental hygiene service and airline catering support service industries and the long-standing ties with customers. Majority of the tenders and contracts awarded in both sectors during the Period under Review came from renewed or existing customers. As at 30 June 2017, the total value of new contracts awarded to the Group was approximately HK$2.8 million, while the total value of renewed contracts was approximately HK$87.3 million, increased by approximately 258.3% and decreased by approximately 12.9% respectively, as compare with relevant figures as at 30 June 2016. Being in a labour intensive and highly competitive industry, the Group is constantly exploring ways to control costs and increase the efficiency of all its operations.
Going forward, the management is cautiously optimistic about the development of the Group's two business segments. The Group expects the ageing working population and shrinking active labour force continue to affect labour intensive industries in Hong Kong. To attract graduates to the industry and retain high potential younger employees, the Group will provide various training to employees at all levels to enhance their skills and knowledge.
Heeding the rising labour cost in Hong Kong and the merits of using machines to replace certain manual labour, the Group is gradually adopting operational processes with a higher level of mechanisation coupled with upgrading existing equipment, which will strengthen the Group's more capacity to deliver high quality services more cost-effectively.
Madam Ng Sing Mui, Chairperson and Executive Director of Winson, said, "Boasting the well-respected "Winson" brandname and a dedicated workforce, the Group has kept expanding its scope of services and improving the quality of its services, and well-positioned itself to capture the opportunities arising in the upcoming years. Going forward, we will continue to bolster our effort on costs and risks control and at same time boost overall operational efficiency to the end of enhancing competiveness and ensuring the stable long-term growth of our businesses."
About Winson Holdings Hong Kong Limited (Stock code: 8421)
Winson Holdings Hong Kong Limited is a Hong Kong-based service provider specialising in environmental hygiene services and airline catering support services in Hong Kong. The Group started off as an environmental hygiene service provider in 1983 via the incorporation of Winson Cleaning. In 1993, the Group set up Winson Pest Control as a separate pest management service provider. To diversify the Group's business, the Group has commenced the provision of airline catering support services since 2013.
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Aug 11, 2017 23:11 HKT/SGT
Topic: Press release summary
Sectors: Daily Finance, Daily News
From the Asia Corporate News Network
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