CHINA – 28 August 2019 – Lai Si Enterprise Holding Limited (“Lai Si Enterprise” or the “Group”; SEHK stock code: 2266), a leading commercial property fit-out and construction contractor in Macau, announced today its interim results for the six months ended 30 June 2019.
In first half of 2019, the Group’s revenue grew significantly by 41.7% to approximately MOP 100.9 million. In which, fitting-out works, construction works, and repair and maintenance services amounted to 91.3%, 5.7% and 3.0% of the Group’s total revenue. Gross profit margin went up by 6.4 percentage points to 21.5%.
The increase in gross profit margin was mainly attributable to higher gross profit margin from fitting-out works. The Group recorded a turnaround in profit and profit attributable to owners of the Company was approximately MOP 1.06 million in the first half of 2019, as compared the loss attributable to owners of the Company of approximately MOP 9.91 million in same period last year.
In addition, in the first half of 2019, the total value for the new fitting-out projects awarded to the Group, representing the aggregate awarded contract sum, amounted to approximately MOP 174.2 million as compared to same period in 2018 of approximately MOP 59.1 million. As at 30 June 2019, the Group had an aggregate value of backlog for fitting-out projects and construction projects of approximately MOP 115.9 million as compared to approximately MOP 46.2 million as at 30 June 2018.
In the first half of 2019, the volume of fitting-out works in Macau’s market was maintaining at a relatively low level, primarily due to the slowdown of Macau’s economic growth, as well as the prolonged impact from the Sino-US trade dispute to the global economic environment.
On top of that, the upcoming license renewals of casinos and hotels in Macau had resulted in the delay of several large gaming corporations’ construction projects, and renovation projects are postponed one after another due to an unexpectedly long process of review and approval of construction proposals by Macau’s governmental authorities.
On the other hand, the Group began actively establishing oversea branches a few years ago. Growing increasingly developed, the Hong Kong branch has already gained its foothold and received recognition in Hong Kong’s fitting-out market. Meanwhile, in view of the high market demand for fitting-out works in Southeast Asian countries and the region, the Group intends to expand its business to those Southeast Asian countries.
Inspections are actively undergoing at the moment. The Group expects to successfully secure new project development plans in Southeast Asian countries in the second half of 2019.
The Group has always been pursuing a diversified development of its business. Apart from the core business of fitting-out works, the Group is searching for additional area of development and exploring other businesses, such as its growing catering business, as well as retailing and trading business which are under planning. The Group believes that engaging in such business sectors will bring additional contribution and opportunities to the Company.
Mr. Lai Ieng Man, Chairman of Lai Si Enterprise, said, “The PRC government is now committed to the development of Guangdong-Hong Kong-Macau Greater Bay Area with a plan to forge the Greater Bay Area into one of the best bay areas around the globe which is suitable for living, career-development and travelling.
This planning policy favors the economic integration between Guangdong Province and the two Special Administrative Regions and an enhanced cooperation between Guangdong, Hong Kong and Macau, thus encouraging more investment projects and commercial activities to take place in the Greater Bay Area, which in turn provides driving force for the real estate market and drives the development in fitting-out and construction industries.
Therefore, the Group is optimistic about the future development of Guangdong-Hong Kong-Macau Greater Bay Area and will seize this opportunity to align ourselves with the national planning strategy and actively participate in the development of the Greater Bay Area.”