Winson Announces FY2016 Annual Results
Capitalises Its Quality Services and Increases Market Penetration
HONG KONG, Jun 07, 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 first audited annual results for the year ended 31 March 2017 ("FY2017" or the "year under review") since its listing on The Stock Exchange of Hong Kong Limited ("HKSE") in March 2017.
During the year under review, the Group maintained stable performance and recorded a total revenue of HK$467.5 million (FY2016: HK$449.8 million). In the face of rising cost of labour, the Group managed to achieve stable gross profit at HK$67.3 million, while gross profit margin slightly declined to 14.4% (FY2016: 15.2%). Profit for the year amounted to HK$8.7 million, while net profit margin reached 1.9%, 4.1% if exclude listing expenses. The Group remained in a healthy financial position, with cash and cash equivalents of HK$71.4 million.
Business Review
Environmental Hygiene Services Environmental hygiene services remained the principal revenue contributor of the Group, generating revenue of HK$432.6 million (FY2016: HK$415.3 million) and accounting for 92.5% of total revenue for the year ended 31 March 2017. Gross profit of HK$62.4 million was recorded, with gross profit margin at 14.4%. As at 31 March 2017, the estimated total value of the Group's contracts in hand was approximately HK$772.6 million, of which HK$356.1 million was ongoing contracts. Furthermore, the Group had won 112 new contracts worth approximately HK$358.2 million in aggregate.
The Group is one of the top ten Environmental hygiene service providers in Hong Kong - ranked 6th in 2015 with 3.8%1 market share based on revenue. In the past year, revenue has risen principally due to customers of office and commercial centres. It has also attracted clients from both the public and private sectors, the former comprise municipal services buildings, while the latter include the management of shopping malls located in the central business district. However, with rising statutory minimum wage and an industry that is labour intensive, the Group's profit has been impacted. Nevertheless, the management has remained resolute in controlling labour and other costs so as to maintain the Group's competitiveness and bolster its market position.
Airline Catering Support Services Leverage the Group's existing client base, the management has been exploring new business opportunities and extending the service from environmental hygiene services to airline catering support services since 2013. Since then, the airline catering support services business continued to develop favourably during the review year, with revenue rising by 1.2% year on year to HK$34.9 million (FY2016: HK$34.5 million) and thus accounting for 7.5% of total revenue of the Group. Gross profit of HK$5.0 million was recorded, with gross profit margin hovering at 14.2%.
As at 31 March 2017, the estimated total value of the Group's contracts in hand amounted to approximately HK$66.7 million, of which HK$50.0 million was ongoing contracts.
Prospects Going forward, the management is cautiously optimistic about the development of the Group's two business segments. Such an outlook is based on its awareness of public concerns for environmental hygiene. Furthermore, a healthy tourism industry and the increase in local and international firms establishing offices in Hong Kong are also factors that will continue to stimulate demand for high-quality hygiene services. In respect of airline catering support services, demand will be driven by steadily rising passenger volume as domestic residents continue to willingly spend more of their income on leisure travel. In addition, with fierce competition in the civil aviation industry, airlines are placing greater focus on in-flight services to achieve market differentiation, which includes providing quality catering.
Madam Ng Sing Mui, Chairperson and Executive Director of Winson, said, "The listing of Winson marked the beginning of a new era for us. Although the operating environment was challenging during the year under review, the management has remained resolute in controlling costs so as to maintain the Group's competitiveness and bolster its market position. Going forward, the Group will capitalise on its quality services to move towards premium market segments where it can generate better income, thus bringing promising returns to shareholders in a long run."
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.
For media enquiries, please contact: Strategic Financial Relations Limited Vicky Lee Tel: (852) 2864 4834 Email: vicky.lee@sprg.com.hk Isabel Kwok Tel: (852) 2864 4824 Email: isabel.kwok@sprg.com.hk Jacky Chiu Tel: (852) 2114 4313 Email: jacky.chiu@sprg.com.hk Website: www.sprg.com.hk
Source: Winson Holdings Hong Kong Limited Sectors: Daily Finance, Daily News
Copyright ©2024 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.
|
Latest Press Release
JCB enables JCB Contactless acceptance at Taichung MRT in Taiwan Apr 26, 2024 10:00 JST
| Mazda Production and Sales Results for March 2024 and for April 2023 through March 2024 Apr 25, 2024 18:21 JST
| MHI Begins Operation of SOEC Test Module the Next-Generation High-Efficiency Hydrogen Production Technology at Takasago Hydrogen Park Apr 25, 2024 17:45 JST
| GAC Honda to Begin Sales of All-new e:NP2, the Second Model of e:N Series Apr 25, 2024 16:50 JST
| Toyota Exhibiting at Beijing Motor Show 2024 Apr 25, 2024 16:25 JST
| Honda Reaches Basic Agreement with Asahi Kasei on Collaboration for Production of Battery Separators for Automotive Batteries in Canada Apr 25, 2024 11:10 JST
| UNIQLO Sponsors KAWS + Warhol Exhibition Tour, Starting in Pittsburgh Apr 25, 2024 09:00 JST
| Mitsubishi Power Begins Commercial Operation of Seventh M701JAC Gas Turbine in Thailand GTCC Project; Achieves 75,000 AOH To-Date Apr 24, 2024 17:19 JST
| MC and Denka Sign J/V Agreement in Fullerene Business Apr 24, 2024 17:02 JST
| Mitsubishi Motors Posts Record Sales in the Philippines in FY2023 Apr 24, 2024 13:56 JST
| NEC Develops High-speed Generative AI Large Language Models (LLM) with World-class Performance Apr 24, 2024 13:25 JST
| Fujitsu SX Survey reveals key success factors for sustainability Apr 23, 2024 10:25 JST
| Fujitsu and METRON collaborate to drive ESG success: slashing energy costs, boosting productivity with new manufacturing industry solutions Apr 22, 2024 16:09 JST
| NEC Strengthens Commitment to Space Industry with Investment in Seraphim Space Venture Fund II Apr 22, 2024 15:09 JST
| Soft Space Launches the First and Only JCB Payment Gateway in Malaysia Apr 22, 2024 15:00 JST
| TOYOTA GAZOO Racing takes a one-two in Croatian thriller Apr 22, 2024 10:47 JST
| First-ever Mazda CX-80 Crossover SUV Unveiled in Europe Apr 19, 2024 13:50 JST
| Fujitsu develops technology to convert corporate digital identity credentials, enabling participation of non-European companies in European data spaces Apr 19, 2024 10:17 JST
| Mitsubishi Heavy Industries and NGK to Jointly Develop Hydrogen Purification System from Ammonia Cracking Gas Apr 18, 2024 17:01 JST
| Toyota Launches All-New Land Cruiser "250" Series in Japan Apr 18, 2024 13:39 JST
|
More Latest Release >>
|