HONG KONG, Jun 29, 2023 – (ACN Newswire via SEAPRWire.com) – Tat Hong Equipment Service Co., Ltd. (“Tat Hong” or the “Company”, together with its subsidiaries, the “Group”) (Stock Code: 2153), the first foreign-owned tower crane service provider established in the PRC, has announced its annual results for the year ended 31 March 2023 (“FY2023” or the “Year”).
In FY2023, the Group recorded revenue of approximately RMB770.8 million, representing a decrease of RMB96.3 million or 11.1% from the year ended 31 March 2022. Loss attributable to equity holders of the Company for the Year amounted to RMB35.8 million, as compared with a profit attributable to equity holders of the Company of approximately RMB47.6 million for the year ended 31 March 2022. This was primarily due to (i) the dramatic increase of exchange loss of approximately RMB37.2 million arising from foreign currency loans and other exchange risk; and (ii) the decrease in revenue due to the outbreak of COVID-19 and the corresponding control measures particularly in Eastern China, which resulted in the delay and postponement of some projects thereby affected the Group’s revenue. Our average monthly service price of tower cranes per tonne metres (TM) in use decreased from RMB279.0 to RMB241.0. The overall gross profit and gross profit margin decreased to RMB173.2 million and 22.5%, respectively.
The Group’s total tonne Metres (TM) in use increased from 3,112,084 for the year ended 31 March 2022 to 3,192,710 for the year ended 31 March 2023. As at 31 March 2023, the Group had 281 projects in progress with a total outstanding contract value of approximately RMB566.7million and 44 projects on hand with a total expected contract value of approximately RMB 114.5 million. Of these projects, the Group expects to complete approximately RMB 544.6 million worth of contract work by the end of 31 March 2024, demonstrating solid earnings visibility.
While the PRC market was adversely affected by the COVID-19 outbreak and subsequent pandemic containment measures throughout 2022, the Group proactively optimized its operation and management. The Group’s subsidiaries expanded their digital management with the self-developed software “TOP” and “iSmartCon”, which improved the efficiency of management and operations. The Group has continued to refine and adjust internal processes to further enhance its business operations. At the same time, the Group strove to seek quality projects and actively pursued business contracts in the clean energy, infrastructure and public construction sectors, especially in delivering services with large-scale tower cranes, so as to improve its business and financial performance in the next reporting period.
Mr. Sean Yau, CEO of Tat Hong Equipment Service Co., Ltd. said, “Against the backdrop of economic recovery and the introduction of favourable policies in the region, China’s infrastructure investment and real estate markets are gradually picking up. Together with the ‘Outline of the 14th Five-Year Plan and 2035 Long-range Objectives’ and the national development goals such as ‘expanding domestic demand, accelerating the construction of a modern industrial system and promoting a green transformation of development methods’ mentioned at the ‘Two Sessions’, it is believed that a number of major infrastructure projects will be launched, including traditional infrastructure, new infrastructure and energy projects, which will provide the Group with tremendous business development opportunities. At the same time, given the development opportunities in the Greater Bay Area, the Group has adjusted its internal structure and incorporated two new companies in the South to respond to the opportunities in the area.”
Mr. Roland Ng, Chairman of Tat Hong Equipment Service Co., Ltd. concluded, “With the pandemic subsiding and work and production resuming smoothly, the PRC has launched a series of industry subsidy policies and programs to promote economic development. We have entered the post-pandemic era, where both opportunities and challenges exist. Looking ahead, the Group will continue to be guided by the core values of ‘Virtue, Safety
and Excellence”, and will further improve and focus on the Group’s strategic goals for sustainable development. By improving digital management across the Group, we can share resources, reduce costs and improve efficiency, while aggressively pursuing international business. This series of measures can also improve operating efficiency and achieve the Group’s goal of becoming the ‘best construction equipment service provider’.”
About Tat Hong Equipment Service Co., Ltd. (Stock Code: 2153)
Tat Hong Equipment Service Co., Ltd. is the first foreign-owned tower crane service provider established in the PRC. Since 2007, the Group has established as a tower crane service provider for one-stop tower crane solution services from consultation, technical design, commissioning, construction to after-sales services primarily to Chinese Special-tier and Tier-1 EPC contractors. Guided by its core values, “Virtue, Safety and Excellence”, the Group has successfully established its market position and maintained stable, reputable and loyal customer base in the construction industry in the PRC.
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