Makes Good Progress with Major Subcontracts for Formwork and Concrete Works
Achieves Notable Rebound in Business
Royal Deluxe Holdings Limited (Royal Deluxe or the Company; together with its subsidiaries, the Group; HKG: 3789), Hong Kong’s first formwork erection and related ancillary services provider holding more than 10 formwork patents, today announced its unaudited interim results for the six months ended 30 September 2023 (the Period).
During the Period, the Group achieved satisfactory progress with the major subcontracts for Third Runway Concourse Foundation formwork and concrete works, as well as Substructure works at the Hong Kong International Airport and certain building formwork projects, including Kai Tak Area 1E Phase 1 public housing development and Tai Wai Station Property Development Project T1-8 Tower. As a result, the Group recorded revenue of approximately HK$361.0 million, up by 8.9% against the corresponding period last year, and gross profit of approximately HK$34.2 million, 21.1% more when compared with the corresponding period last year. The Group’s gross profit margin remained stable at approximately 9.5%. Profit attributable to owners of the Company was approximately HK$7.6 million.
The Group has a history of more than 29 years in Hong Kong and is one of the largest formwork sub-contractors in the city. It has actively undertaken large-scale formwork erection projects over the years, allowing it to establish a robust business foundation and a strong customer base. Its direct customers are main contractors of building construction and civil engineering projects owned by end-customers including the Hong Kong SAR Government, public transport operators, the Airport Authority and property developers.
Boasting extensive experience and expertise, the Group landed a number of new projects during the Period, which saw its business grow and advance steadily. During the six months ended 30 September 2023, the Group secured three new contracts of total value approximately HK$372.9 million, two of which had started contributing revenue to the Group during the Period. As at 30 September 2023, the Group had a total of nine projects on hand with total outstanding value estimated at approximately HK$566.4 million, approximately 27.2% more as compared to the approximately HK$445.4 million as at 31 March 2023.
After the six months ended 30 September 2023 and as at 28 November 2023, the Group has secured another four new subcontracts for building formwork works of total contract value at approximately HK$559.6 million. With a good number of projects on hand expected to be completed between one to three years, the Group expects the performance of its subcontract works business to remain sustainable and stable in the next few years.
Mr. Wang Kei Ming, Chairman and Executive Director of Royal Deluxe Holdings Limited, said, “Over the past few years, the business environment has been immensely challenging. However, showing strong resilience and with the management exercising strict control over the progress of different projects, the Group was able to overcome different challenges and maintain a well-disciplined and stable operation. Our business rebounded notably during the Period, recovering from the difficult times caused by the COVID-19 pandemic. Looking ahead, we will remain mindful of such factors as labour shortage, inflation and rising finance costs. We will address future challenges with flexible and effective business strategies, continuing to take our business forward in good pace. In the ever-changing market environment, we will strive to seize every growth opportunity so as to create long-term and robust returns for shareholders.”