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 quarterly results for the nine months ended 31 December 2017 (“Period under Review”).
The Group’s two principal businesses, consisting of environmental hygiene and related services and airline catering support services, performed stably for the nine months ended 31 December 2017. The operations contributed combined revenue of approximately HK$128.9 million for the three months ended 31 December 2017 and approximately HK$377.1 million for the Period under Review, grew by approximately 9.6% and approximately 8.5% respectively when compared to the corresponding period in last year. Gross profit amounted to approximately HK$19.2 million for the three months ended 31 December 2017and approximately HK$56.6 million for the Period under Review, representing year-on-year increases of approximately 13.6% and approximately 11.1% respectively from the corresponding period of 2016. Furthermore, profit for the Period under Review surged by approximately 37.3% to approximately HK$17.4 million and up by approximately 1.5% to approximately HK$5.7 million during the third quarter of 2017 when compared to the corresponding period in last year. The Group had cash and cash equivalents of approximately HK$57.0 million as at 31 December 2017.
Business Review
Environmental Hygiene and Related Services
Environmental hygiene and related services have traditionally been a major source of revenue for the Group. This has continued for the third quarter of 2017 and the Period under Review, with the business generating revenue of approximately HK$118.7 million and approximately HK$346.7 million respectively, representing corresponding year-on-year increases of approximately 9.0% and approximately 7.8% million respectively. Gross profit has likewise achieved a favourable upswing, amounting to approximately HK$18.0 million for the third quarter of 2017 and approximately HK$53.2 million for the Period under Review, grew by approximately 15.4% and approximately 13.0% respectively when compared to the corresponding period of 2016.
As at 31 December 2017, the estimated total value of environmental hygiene services contracts held by the Group amounted to approximately HK$925.4 million, of which approximately HK$668.0 million was ongoing contracts, approximately HK$572.8 million being contracts won during the Period under Review, and approximately HK$403.0 million secured during the third quarter of 2017. The growth momentum was driven in part by the awarding of a new contract from a major railway operator which covers cleaning services for its tracks, tunnels and plant rooms found along all of its railway lines and some high level cleaning services in areas 3 meters and above.
Airline Catering Support Services
Though the airline catering support services business provides a supplementary source of revenue for the Group, it has nonetheless become an inseparable part of the Group’s make up. For the third quarter of 2017 and the Period under Review, the business generated revenue of approximately HK$10.2 million and approximately HK$30.4 million respectively, or corresponding year-on-year increases of approximately 17.3% and approximately 17.2%. In respect of gross profit, approximately HK$1.2 million and approximately HK$3.4 million were recorded for the third quarter of 2017 and the Period under Review respectively.
Prospects
With the ushering of the New Year, the Group expects 2018 to be a period of modest growth as many major contracts for environmental hygiene and related services have either been renewed or awarded to industry players including the Group. As for airline catering support services, demand is expected to be on a growth trend due to well performed tourist industry.
Despite the abovementioned marketprognoses, the management considers the coming year to be an ideal opportunity for the Group to strengthen its capabilities and fortify its position in the respective markets. Towards these objectives, it will continue to examine ways to optimise operations, including the introduction of automation where feasible for allowing it to lessen its labour dependence, particularly given the ongoing labour shortage which has driven associated costs upwards. That being said, the management also recognises that certain services are dependent on the expertise of its workforce, hence training will continue to not only maintain the professionalism of staff, but also to bolster their capabilities.
Madam Ng Sing Mui, Chairperson and Executive Director of Winson, said, “The management will closely examine all avenues where the Group’s expertise in environmental hygiene and related services and airline catering support services can be introduced. It will also look to extend business relations with clients by leveraging the experience gained from past projects. By taking a proactive approach, the management trusts that the Group will be able to maintain its competitiveness and growth irrespective of market conditions.”