The Times Australia
News From Asia

.
The Times Real Estate

.

CR Construction Announces Interim Results

Net profit increased by 10% YoY, Proposed an interim dividend of HK1.5 cents per share

Highlights:

  • Revenue generated from environmental operations increased by 132.1% to approximately HK$114.8 million.
  • Gross profit increased by 10.8% to approximately HK$150.5 million.
  • Net profit increased by 10.3% to approximately HK$46.0 million.
  • Basic earnings per share was HK9.1 cents. The Board recommended the payment of interim dividend of HK1.5 cents per share.

Financial Highlights:

For the 6 months ended 30 June
HK$'000
2023
2022
Change
Revenue
2,832,073
2,919,864
-3.0%
  • Construction operations
  • Environmental operations
2,717,304

114,769
2,870,415

49,449
-5.3%

+132.1%
Gross profit
150,480
135,756
+10.8%
Gross profit margin

Net profit
5.3%

45,954
4.7%

41,668
+0.6 ppts.

+10.3%
Earnings per share (HK cents)
9.1
8.3
+9.7%


HONG KONG SAR - Media OutReach - 25 August 2023 - CR Construction Group Holdings Limited ("CR Construction" or the "Company", together with its subsidiaries, the "Group"; stock code: 1582.HK), a building contractor in Hong Kong, announced its interim results for the six months ended 30 June 2023 (the "Reporting Period"). During the Reporting Period, the revenue recorded by the Group amounted to approximately HK$2,832.1 million representing a decrease of approximately 3.0% as compared to approximately HK$2,919.9 million for the six months ended 30 June 2022 (the "Corresponding Period Last Year").

Net profit of the Group during the Reporting Period was approximately HK$46.0 million, representing an increase of 10.3% as compared to the Corresponding Period Last Year.

During the Reporting Period, gross profit of the Group was approximately HK$150.5 million, representing an increase of approximately 10.8% as compared to approximately HK$135.8 million for the Corresponding Period Last Year. The Group's gross profit margin was approximately 5.3% and 4.7% for the six months ended 30 June 2023 and 2022, respectively. The gross profit margin of the Group increased slightly by approximately 0.6 percentage points by comparing the six months ended 30 June 2023 against the six months ended 30 June 2022.

During the Reporting Period, earnings per share of the Group was approximately HK9.1 cents (for the six months ended 30 June 2022: HK8.3 cents). The Board recommended the payment of interim dividend of 1.5 cents per share.

BUSINESS REVIEW

Construction Operations
Building Construction Works
For the six months ended 30 June 2023, the revenue generated from the building construction works was HK$2,455.9 million, representing an increase of approximately 9.9% as compared to approximately HK$2,235.5 million for the six months ended 30 June 2022.

During the Reporting Period, the gross profit of building construction works was approximately HK$130.6 million, representing an increase of approximately 98.2% as compared to approximately HK$65.9 million for the Corresponding Period Last Year. The gross profit margin increased to approximately 5.3% for the six months ended 2023. The increase in gross profit and gross profit margin was mainly due to additional cost incurred for variation orders for projects during the prior period, while the respective revenue were only certified during the Reporting Period.

Repair, Maintenance, Alteration and Addition ("RMAA")
The revenue generated from the RMAA works decreased by approximately 58.8% from approximately HK$634.9 million for the six months ended 30 June 2022 to approximately HK$261.4 million for the six months ended 30 June 2023.

During the Reporting Period, the gross loss of RMAA works was approximately HK$1.4 million, representing a decrease of approximately HK$56.3 million from the gross profit of approximately HK$54.9 million for the six months ended 30 June 2022. The gross profit margin decreased to approximately negative 0.5% for the six months ended 30 June 2023. The decrease in the gross profit and gross profit margin for the six months ended 30 June 2023 was mainly due to additional cost incurred for variation orders for a project during the Reporting Period, while the respective revenue is expected to be recognised at a later stage.

Environmental Operations
For the six months ended 30 June 2023, the revenue generated from the environmental operations was approximately HK$114.8 million, representing an increase of approximately 1.3 times as compared to approximately HK$49.5 million for the six months ended 30 June 2022.

During the Reporting Period, the respective gross profit was approximately HK$21.3 million, representing an increase of approximately 42% as compared to approximately HK$15.0 million for the six months ended 30 June 2022. The gross profit margin decreased to approximately 18.5% for the six months ended 30 June 2023. The increase in the gross profit and decrease in gross profit margin for the six months ended 30 June 2023 was mainly due to increase in revenue from construction and rehabilitation services which contributed lower gross profit margin during the Reporting Period.

Contract Costs
The Group's contract costs primarily consisted of subcontracting costs, material costs, direct staff costs and site overheads. For the six months ended 30 June 2023, the contract costs recorded by the Group were approximately HK$2,681.6 million, representing a decrease of 3.7% compared to approximately HK$2,784.1 million for the six months ended 30 June 2022. Such decrease was attributable to the decrease in subcontracting costs, material costs and direct staff costs for new projects and existing projects, which was partly offset by increase in provision of rectification works and claims, during the Reporting Period.

Other Business Development
Acquisition of entire equity interest in Zhejiang Construction Investment Environment Engineering Company Limited
As disclosed in the announcement of the Company dated 31 January 2023, the Company and China Zhejiang Construction Group (H.K.) Limited (the "Seller"), one of the controlling shareholders of the Company, entered into the share purchase agreement, in relation to the Company has conditionally agreed to acquire the entire equity interest in Zhejiang Construction Investment Environment Engineering Company Limited (the "Target Company") at the Consideration of RMB201,000,000 (equivalent to approximately HK$228,409,090).

All the conditions precedent under the Share Purchase Agreement have been fulfilled, the completion took place on 8 May 2023 and the Target Company has become a wholly-owned subsidiary of the Company since then.

PROSPECTS

Subsequent to 30 June 2023, the Group has been further awarded 2 new projects in relation to RMAA contracts with an original contract sum of approximately HK$10.6 million.

The Group has also placed great emphasis on technological innovation to enhance its core competitiveness in the construction industry. The total expenditure for the research and development is approximately HK$10.7 million during the Reporting Period. Our self-developed Digital Works Supervision System ("DWSS"), SmarTick Pro has obtained the ISO27001 Certification for Information Security Management System, meeting the requirements of this international standard, and becoming the first company to obtain this certificate for DWSS in Hong Kong. As construction digitalization continues to accelerate, the Group are keeping pace with the industry by adopting more digital tools at our sites to enhance management and construction safety. Meanwhile, the Group also developed new sewage treatment membrane to be used in sewage and reclaimed water treatment services in the PRC.

In the second half of 2023, the city's economic activities will have returned to normal levels, while the const pressures will be increased alongside the recovery. As the government recently introduce labour importation schemes for the construction industry, we expect that it may help alleviate some of the challenges associated with the skilled-labour shortages. The Company will continue to put in dedicated efforts in seeking out new and promising construction business opportunities that can generate profitable growth for the Group. Meanwhile, leveraging on our industrial knowledge, the Company is keen to explore suitable business opportunities in the Construction area locally or overseas.

Hashtag: #CRConstruction #華營建築

The issuer is solely responsible for the content of this announcement.

CR Construction Group Holdings Limited

CR Construction Group Holdings Limited, which is carrying out construction business for over 55 years locally, is one of the leading building contractors in Hong Kong. The Group principally act as a main contractor in building construction works and RMAA works projects across public and private sectors in Hong Kong. As a main contractor, the Group is responsible for (i) overall management of the projects; (ii) formulating work programmes; (iii) engaging subcontractors and supervising their works; (iv) sourcing construction materials; (v) communication and coordination with the customers and their consultant teams; and (vi) safeguarding compliance with safety, environmental and other contractual requirements.

The Times Features

How to buy a coffee machine

For coffee lovers, having a home coffee machine can transform your daily routine, allowing you to enjoy café-quality drinks without leaving your kitchen. But with so many optio...

In the Digital Age, Online Promotion Isn't Just an Option for Small Businesses – It's a Necessity

The shift to an online-first consumer landscape means small businesses must embrace digital promotion to not only survive but thrive in 2025. From expanding reach to fostering cu...

Sorbet Balls by bubbleme Bring Bite-Sized Cool Spin to Frozen Snacking

A cool new frozen treat is rolling into the ice-cream aisle at Woolworths stores nationwide. Dairy-free, gluten-free and free from artificial colours, bubbleme Sorbet Balls ar...

Mind-Body Balance: The Holistic Approach of Personal Training in Moonee Ponds

Key Highlights Discover the benefits of a holistic approach to personal training in Moonee Ponds and nearby Maribyrnong, including residents from Strathmore. Learn how mind-b...

How Online Platforms Empower You to Find Affordable Removalists and Electricity Plans

When you move into a new home, you have many tasks to do. You need to hire removalists and set up your electricity.  In this article, we discuss how online platforms empower you ...

IS ROSEMARY OIL THE SECRET TO BETTER HAIR DAYS? HERE’S WHAT IT CAN DO

Rosemary hair oil is a straightforward natural solution that delivers exceptional results for anyone who wants to enhance their haircare process. It maintains its status in herba...

Times Magazine

CNC Machining Meets Stage Design - Black Swan State Theatre Company & Tommotek

When artistry meets precision engineering, incredible things happen. That’s exactly what unfolded when Tommotek worked alongside the Black Swan State Theatre Company on several of their innovative stage productions. With tight deadlines and intrica...

Uniden Baby Video Monitor Review

Uniden has released another award-winning product as part of their ‘Baby Watch’ series. The BW4501 Baby Monitor is an easy to use camera for keeping eyes and ears on your little one. The camera is easy to set up and can be mounted to the wall or a...

Top Benefits of Hiring Commercial Electricians for Your Business

When it comes to business success, there are no two ways about it: qualified professionals are critical. While many specialists are needed, commercial electricians are among the most important to have on hand. They are directly involved in upholdin...

The Essential Guide to Transforming Office Spaces for Maximum Efficiency

Why Office Fitouts MatterA well-designed office can make all the difference in productivity, employee satisfaction, and client impressions. Businesses of all sizes are investing in updated office spaces to create environments that foster collaborat...

The A/B Testing Revolution: How AI Optimized Landing Pages Without Human Input

A/B testing was always integral to the web-based marketing world. Was there a button that converted better? Marketing could pit one against the other and see which option worked better. This was always through human observation, and over time, as d...

Using Countdown Timers in Email: Do They Really Increase Conversions?

In a world that's always on, where marketers are attempting to entice a subscriber and get them to convert on the same screen with one email, the power of urgency is sometimes the essential element needed. One of the most popular ways to create urg...

LayBy Shopping