HONG KONG, Jun 29, 2022 – (ACN Newswire) – 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 2022 ("FY2022" or the "Year").
In FY2022, the Group recorded revenue amounting to RMB867.0 million, representing a 9.3% increase from that for the year ended 31 March 2021, primarily due to the increase in the number of both self-owned and rented tower cranes, the majority of which had been working on-site and generating revenue. The Group's total Tonne Metres in use increased from approximately 2,491,629 in FY2021 to 3,112,084 in FY2022.
Gross profit decreased by approximately 14.3% to RMB234.1 million for the Year. Profit for the year amounted to RMB47.6 million for the Year (FY2021: RMB101.2 million). The decrease was primarily due to the impact of accounting treatment (a non-cash adjustment) on the value of the shares awarded to the top management of the Company in March 2022 under the share award scheme contributed by the shares of the Company owned by the controlling shareholders of the Company. The Board of Directors recommended the payment of a final dividend of HK1.6 cents per share.
As at 31 March 2022, the Group had 288 projects in progress with a total outstanding contract value of approximately RMB569 million and 42 projects on hand with a total expected contract value of approximately RMB102 million. Of these projects, the Group expects to complete contract work of approximately RMB497 million by the year ending 31 March 2023, demonstrating high and solid earnings visibility in the forthcoming year.
Mr. Sean Yau, CEO of Tat Hong Equipment Service Co., Ltd. said, "FY2022 was a tough year not only to us, but to the entire market as well. Despite COVID-19 pandemic prevention and control measures, vaccination rates have begun to rise in various countries, and economies including China are gradually recovering. However, global public health, economy and employment are still adversely affected by it. With the continued occurrence of COVID-19 pandemic situation across the world, the global market is still facing many uncertainties under the pandemic. We will take this opportunity to expand new market opportunities and continue to provide customers with one-stop tower crane solution services."
During the Year, the Group expanded its business by purchasing additional tower cranes and relevant ancillary parts and components to meet the increasing customers' demand. As at the date of this announcement, a total of 1,180 tower cranes were managed by the Group, equipped to cater for the Group's customers' specialised range of EPC projects throughout the PRC. As a well-recognised foreign-owned tower crane service provider in the PRC, the Group has also built a strong reputation in our awareness to workers' safety, service quality and technical strength. The Group currently possesses 77 registered patents for utility models and inventions relating to tower cranes.
In addition to enhancing the manufacturing capability, the Group has continuously enhanced its remanufacturing and reprocessing capabilities for tower cranes and their ancillary structural components, as well as committed to providing a green service and to improving the operational and management efficiency through developing the digital management platform "iSmartCon".
Looking ahead, we will focus on operation of medium and large size tower cranes to meet the growing needs for prefabricated construction, and to establish a standardized post market service eco-system for tower cranes so as to provide a green, safe and environmental friendly tower crane service foundation.
Mr. Roland Ng, Chairman of Tat Hong Equipment Service Co., Ltd. concluded, "Going forward, the Group, with the effective execution of the PRC prevention and control policies, will continue to pay attention to the situation of the COVID-19 pandemic to ensure the safety of the employees and to mitigate its negative impact on the financial position and operating results. We will continue to consolidate our strengths and leading position in the market with a view to capture the huge market growth opportunities, driving sustainable long-term business and bringing satisfactory returns to our shareholders."
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