Lai Si Enterprise Announces 2019 Interim Results

Recorded a turnaround in profit in the first half of 2019; Profit attributable to owners of the Company was MOP 1.1 million

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The
aggregate awarded contract sum of the new fitting-out projects amounted to approximately MOP 174.2 million, representing an increase of 1.9 times year on
year

 

Optimistic
about the future development and actively
participate in the development of the Greater Bay Area

 

Financial Performance:

	For the six months ended 30 June
(in Macau Pataca (“MOP”) ‘000)	2019	2018	Change
Revenue	100,914	71,205	+41.7%
Gross profit	21,727	10,783	+101.5%
Gross profit margin	21.5%	15.1%	+6.4% pts
Profit (loss) attributable to owners of the Company	1,064	(9,907)	Turnaround in profit
Earnings (loss) per share (MOP cents)	0.3	(2.5)	Turnaround in profit

 

HONG KONG, CHINA - Media OutReach - 28 August 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 interim results for the six
months ended 30 June 2019.

 

In first half of 2019, the
Group’s revenue grew significantly by 41.7% to approximately MOP 100.9 million.
In which, fitting-out works, construction works, and repair and maintenance
services amounted to 91.3%, 5.7% and 3.0% of the Group’s total revenue. Gross
profit margin went up by 6.4 percentage points to 21.5%. The increase in gross
profit margin was mainly attributable to higher gross profit margin from
fitting-out works. The Group recorded a turnaround in profit and profit attributable to owners of the Company was approximately MOP 1.06 million
in the first half of 2019, as compared the loss attributable to owners of the
Company of approximately MOP 9.91 million in same period last year.

 

In addition, in the first half of 2019,
the total value for the new fitting-out projects awarded to the Group,
representing the aggregate awarded contract sum, amounted to approximately MOP
174.2 million as compared to same period in 2018 of approximately MOP 59.1
million. As at 30 June 2019, the Group had an aggregate value of backlog for
fitting-out projects and construction projects of approximately MOP 115.9 million
as compared to approximately MOP 46.2 million as at 30 June 2018.

 

In the first half of 2019, the
volume of fitting-out works in Macau’s market was maintaining at a relatively
low level, primarily due to the slowdown of Macau’s economic growth, as well as
the prolonged impact from the Sino-US trade dispute to the global economic
environment. On top of that, the upcoming license renewals of casinos and
hotels in Macau had resulted in the delay of several large gaming corporations’
construction projects, and renovation projects are postponed one after another
due to an unexpectedly long process of review and approval of construction
proposals by Macau’s governmental authorities.

 

On the other hand, the Group began
actively establishing oversea branches a few years ago. Growing increasingly
developed, the Hong Kong branch has already gained its foothold and received
recognition in Hong Kong’s fitting-out market. Meanwhile, in view of the high
market demand for fitting-out works in Southeast Asian countries and the
region, the Group intends to expand its business to those Southeast Asian
countries.

Inspections are actively undergoing
at the moment. The Group expects to successfully secure new project development
plans in Southeast Asian countries in the second half of 2019.

 

The Group has always been pursuing
a diversified development of its business. Apart from the core business of
fitting-out works, the Group is searching for additional area of development
and exploring other businesses, such as its growing catering business, as well
as retailing and trading business which are under planning. The Group believes
that engaging in such business sectors will bring additional contribution and
opportunities to

the Company.

 

Mr. Lai Ieng Man, Chairman of Lai Si Enterprise, said, “The PRC government
is now committed to the development of Guangdong-Hong Kong-Macau Greater Bay
Area with a plan to forge the Greater Bay Area into one of the best bay areas
around the globe which is suitable for living, career-development and
travelling. This planning policy favors the economic integration between
Guangdong Province and the two Special Administrative Regions and an enhanced
cooperation between Guangdong, Hong Kong and Macau, thus encouraging more
investment projects and commercial activities to take place in the Greater Bay
Area, which in turn provides driving force for the real estate market and drives
the development in fitting-out and construction industries. Therefore, the
Group is optimistic about the future development of Guangdong-Hong Kong-Macau
Greater Bay Area and will seize this opportunity to align ourselves with the
national planning strategy and actively participate in the development of the
Greater Bay 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.