Consolidating footholds in Macau and Hong Kong to pave the way for business expansion in Guangdong-Hong Kong-Macau Greater Bay Area
HONG KONG, CHINA - Media OutReach - 26 March 2019 - Lai Si Enterprise Holding Limited ("Lai Si Enterprise" or the "Group"; SEHK stock code: 2266), a leading commercial property fit-out and construction contractor in Macau, announced today its audited annual results for the year ended 31 December 2018.
During the year, the Group's revenue fell by 36.7% to MOP173.7 million. Gross profit margin went up by 1.3 percentage points to 22.3%. A breakdown shows that the gross profit margin of fit-out works rose by 4.3 percentage points and that of repair and maintenance services increased by 10.1 percentage points. Profit attributable to owners of the Company for the year was approximately MOP2.3 million.
Despite the shrinkage of the fit-out market in Macau, the Group stepped up its efforts to develop fit-out business, expand its clientele and market coverage, and gain a foothold in Hong Kong's fit-out market. As an integrated fit-out contractor, the Group undertook in the second half a series of fit-out works for large commercial buildings, renowned local restaurants, major property developers, global retail brands and internationally well-known coffeehouse chains in Hong Kong and Macau. As a result, the Group achieved significant improvement in the second half in terms of performance compared to the first half and successfully staged a turnaround with net profit of approximately MOP12.2 million in the second half.
Meanwhile, the Group continued to undertake construction projects of the Macau government. To expand market share and diversify the business risk of such projects, the Group has been exploring the possibility of cooperating with contractors from mainland China. To tap promising markets beyond Macau, the Group will continue to expand its business presence in Hong Kong. It will seek to undertake fit-out works for other kinds of buildings or clients in addition to the renovation projects for club houses, commercial buildings and retail stores of international brands in the city. For its track record, the Group has recently been included in Hong Kong's renowned property developers' list of approved sub-contractors. This will open up more opportunities for the Group to tender for fit-out works in the city.
Mr. Lai Ieng Man, Chairman of Lai Si Enterprise, said, "The Group remains optimistic about the outlook of the fit-out market in Macau and Hong Kong because China's state policy to foster the development of the Guangdong-Hong Kong-Macau Greater Bay Area will generate more business opportunities. It is expected that the policy will add impetus to the economy of the area and attract more multinational corporations to set up offices and more international retailers to open branches there. This will drive up the demand for fit-out works, repair and maintenance services in the region. With its experienced management and staff, the Group is well-positioned to expand its market share in the area."
About Lai Si Enterprise Holding Limited
Lai Si Enterprise is a leading commercial fit-out contractor in Macau. Its major businesses cover services of fit-out works as an integrated fit-out contractor, construction works as a main contractor and repair and maintenance works, mainly in Macau. According to Frost & Sullivan, in terms of revenue, the Group was the second largest commercial fit-out contractor in Macau in 2015, with a market share of approximately 6.1%. The fit-out projects undertaken by the Group can be broadly classified according to the types of customers, including hotels and casinos, retail shops and restaurants, etc. The Group's construction services include general construction and heritage conservation. The Group also provides repair and maintenance services for existing properties in Macau on ad-hoc basis and regular basis over a fixed period.