HONG KONG — Winson Holdings Hong Kong Limited (“Winson” or the “Group”; stock code: 8421), a Hong Kong-based service provider specialising in environmental hygiene and related services and airline catering support services, has announced its unaudited interim results for the six months ended 30 September 2017 (“Period under Review”).
During the Period under Review, the Group’s two principal businesses, environmental hygiene and related services and airline catering support services, performed steadily. The two operations generated combined revenue of approximately HK$248.2 million, representing a year-on-year increase of approximately 8.0%. Though the cost of services has further increased, the Group has nonetheless been able to achieve a gross profit of approximately HK$37.4 million. Furthermore, profit for the Period under Review was approximately HK$11.7 million (2016: approximately HK$7.1 million). Indicative of the Group’s solid financial health, it had cash and cash equivalents of approximately HK$52.7 million as at the Period under Review.
Environmental Hygiene and Related Services
Environmental hygiene and related services remained the principal revenue contributor of the Group, contributing approximately HK$228.0 million in revenue and accounting for approximately 91.9% of total revenue. Gross profit of approximately HK$35.1 million was recorded compared with HK$31.4 million booked for the corresponding period last year, with gross profit margin at approximately 15.4% (FY2016: 14.8%). As at 30 September 2017, the estimated total value of the Group’s contracts in hand was approximately HK$610.5 million, of which approximately HK$607.4 million was ongoing contracts. The Group won 11 new contracts worth approximately HK$20.2 million in aggregate during the Period under Review.
Airline Catering Support Services
Having effectively tapped the Group’s existing client base to extend services from environmental hygiene to airline catering support services back in 2013, the latter segment has been developing favourably ever since. As at the Period under Review, airline catering support services generated revenue totalling of approximately HK$20.2 million, representing a year-on-year rise of approximately 17.4 %, and accounted for approximately 8.1% of total revenue. Gross profit of approximately HK$2.3 million was recorded compared to approximately HK$2.6 million reported for the same period last year. Gross profit margin stood at approximately 11.4%.
With loyal and skilled workforce, combined with a dedicated management team and respected “Winson” brand name are the catalysts for the Group’s continuing expansion and development.
Going forward, with new buildings constantly being built while existing and old buildings also requires regular upkeep, the demand for environmental hygiene and related services is expected to remain strong. This coupled with lacklustre performance of certain business peers will present greater growth opportunities to the Group. Meanwhile, demand for airline catering support services is expected to be strong, driven by the revival of tourist industry and airline operators’ increasing desire to contract catering support services to reliable third parties such as the Group.
While the aforementioned developments are encouraging, the management recognises that the Group is facing challenges of rising labour costs, labour shortage and intense competition. To address such challenges, the Group is constantly examining all facets of operation and the ways in which to bolster efficiency. Where applicable, it will introduce equipment and equipment upgrades that reduce the Group’s dependence on manual labour.
Madam Ng Sing Mui, Chairperson and Executive Director of Winson, said, “Despite the keen market competition and labour shortage issue, the Group managed to deliver solid results. Boasting the well-respected “Winson” brandname and a dedicated workforce, the Group will continue exploring all avenues for expanding its scope of services which leverages its expertise in environmental hygiene and related services and airline catering support. Concurrently, the Group will seek to strengthen these two core businesses by making more effort to increase in competitiveness and profitability, leading to long-term sustainable growth.”