- Revenue up 5.1% to HK$166.6 Million- Gross Profit Increases 13.5% to HK$34.4 Million
Hong Kong, Nov 17, 2014 - (ACN Newswire) - Leading Hong Kong property management service provider Kong Shum Union Property Management (Holding) Limited ("Kong Shum Union" or the "Group"; Stock Code: 8181) announced its interim results for the six months ended 30 September 2014. The Group maintained stable growth during the period, with both revenue and gross profit showing noticeable improvement.
Financial Highlights:
- Revenue of the Group increased by 5.1% to HK$166.6 million (2013 Interim: HK$158.5 million)- Gross profit soared 13.5% to HK$34.4 million (2013 Interim: HK$30.4 million), with gross profit margin rising 1.5 percentage points to 20.7% (2013 Interim: 19.2%) - Profit attributable to the owners of the Company was approximately HK$4.0 million (2013 Interim: HK$4.9 million) - Earnings per share were HK Cent 1.0 (2013 Interim: HK Cents 1.6)
During the first half of 2014, the Group's revenue has improved by approximately 5.1% to approximately HK$166.6 million, primarily attributable to the growth from the Group's major revenue generator property management services contracts. Gross profit has increased by 13.5% to HK$34.4 million, while the gross profit margin was 20.7% for six months ended 30 September 2014, compared to 19.2% in the corresponding period of last year. Negatively affected by increase in staff cost, profit attributable to owners of the Company and net profit margin reported as approximately HK$4.0 million (2013 Interim: HK$4.9 million) and 2.4% (2013 Interim: 3.1%).
By business segment, property management services contracts continued to be the Group's major business, with revenue increasing by 5.7% to HK$156.3 million for the period, contributing 93.8% of the Group's total revenue. Revenue from security services contracts was HK$10.3 million, representing 6.2% of total revenue. All of the Group's revenue was derived from its operation in Hong Kong.
Mr. Ho Ying Cheung, Chairman of Kong Shum Union, said, "We are pleased to see the Group continued its development with a modest earnings growth and staying competitive in the market. Kong Shum Union always strive to provide tailor-made and professional services to the clients with an aim to maintain and improve good living and working environment as well as the market values of the properties. With aggregated long experience in multi-storey building managements, we are determined to uphold our core principles and build on the good progress."
Operation Review
Services contractsDuring the six months ended 30 September 2014, seven facility management service contracts for non-domestic property management segment which included three shopping complexes, three educational institutes and empty bay were awarded to the Group. The success in securing the contracts gave the Group confidence to expand the property management portfolio continuously. In addition, 13 property management contracts and one stand-alone security service contract were awarded to the Group during the period under review.
As at 30 September 2014, there are in total 412 service contracts comprising 390 property management service contracts, 15 stand-alone security service contracts and seven facility management service contracts.
Contract renewal complying with procedural requirementsDuring the period, 395 out of the total of 412 service contracts were in compliance with the procedural requirements for contract renewal and as stipulated by local authorities. The Group adopts tight control system to monitor the full compliance of the procedural requirements. All newly signed contracts during the period included the mandatory term requiring the client to follow the said procedural requirements.
On 14 October 2014, Kong Shum Union was informed by Topgrow Holdings Limited ("Topgrow"), the controlling shareholder of the Group, that it had entered into a memorandum of understanding ("MOU") with an independent third party (the "Potential Purchaser") in relation to a possible sale and purchase of the shares of the Group held by Topgrow. According to the MOU, the Potential Purchaser may acquire approximately 75% of the total issued share capital of the Group, which if materialized and completed, will lead to an obligation of the Potential Purchaser to make a mandatory general offer under the GEM Listing Rules in Hong Kong.
Mr. Ho concluded, "The number of property in Hong Kong market is growing. Public voices concern over the housing stock production and speeding up of the housing completion in the near future is expected to solve the heavy demand on housing. It is envisaged that the property management business will expand simultaneously. As our focused business areas have demonstrated strong growth potential and the market conditions continue to improve, we will continue to invest more resources to strengthen its operation efficiency and capture the arising opportunities."
About Kong Shum Union Property Management (Holding) Limited
Established in 1984, Kong Shum Union Property Management (Holding) Limited is principally engaged in the provision of property management services in Hong Kong primarily targeting residential properties. The Group operates under the brand name of "Kong Shum" and provides a range of management services including security, repair and maintenance, cleaning, finance management, administrative and legal support. With years of operation and client orientated attitudes, Kong Shum Union has been developed into a sizeable and professional property management company in the industry. Currently, the Group provided property security services for 26 properties under stand-alone security services contracts, approximately seventy thousand domestic units and over one hundred thousand square metres of commercial premises were under business operation.
Please visit http://www.kongshum.com.hk for more information.
Source: Kong Shum Union Property Management (Holding) Limited
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