Lai Si Enterprise Announces 2018 Interim Results
Maintained a strong foothold and business foundation and won several new projects in Macau & Hong Kong in 1H 2018
Poised to capitalize on the development of the Greater Bay Area; Remain prudently optimistic about the prospect of the fitting-out and construction markets
HONG KONG, CHINA - Media OutReach - 27 August 2018 - Lai Si Enterprise Holding Limited ("Lai Si Enterprise" or the "Group"; SEHK stock code: 2266 ), a leading commercial fitting-out contractor in Macau and is engaged in construction business, announced today its unaudited interim results for the six months ended 30 June 2018.
For the first half of 2018, the Group's revenue was MOP71.2 million, representing a decrease of 36.6% year on year, in which the revenue from fitting-out works segment and construction works segment reduced to MOP67.4 million and MOP2.6 million respectively. The Group's loss for the period attributable to owners of the Company was approximately MOP9.9 million, in a combined result of both fitting-out and construction industries in doldrums and certain project delay or postponement in Macau.
Despite the poor operating environment in the industry in Macau, the Group won several new fitting-out projects, representing the aggregate awarded contract sum amounted to approximately MOP59.1 million, for the first half of 2018 (1H2017: MOP29.2 million). As at 30 June 2018, the Group had an aggregate value of backlog for fitting-out projects and construction projects of approximately MOP46.2 million (30 June 2017: MOP90.9 million).
Looking ahead, the prospect of the fitting-out market in Macau has been temporarily clouded by the city's economic slowdown and the postponement of some refurbishment and construction projects. However, Lai Si Enterprise will continue to leverage its established reputation and competitive advantages to undertake ongoing fitting-out and construction projects of its existing clients there. The Group will further consolidate its market position and achieve business growth by strengthening its financial capabilities to undertake more and larger fitting-out projects and construction projects in Macau.
To cope with the shrinkage of the market in Macau, the Group will step up the effort to develop fitting-out business, expand its clientele and market coverage, and to gain a foothold in Hong Kong's fitting-out market. Such initiative has already yielded some results as the Group has recently won more contracts to undertake fitting-out projects for some premises.
Mr. LAI Ieng Man, Chairman of Lai Si Enterprise , said, "In the long term, the Group is gearing up to the prospect of the development of the Guangdong-Hong Kong-Macau Bay Area, which is one of China's grand policies for national development. The policy will boost the property markets and thus the fitting-out and construction markets as it can encourage more investment and commercial activities within the Greater Bay Area. The Group is well-positioned to capitalize on the development of the Greater Bay Area because it already has a foothold in Macau and is also building another one in Hong Kong. The management remains prudently optimistic about the prospect of the fitting-out and construction markets of Macau and Hong Kong."
About Lai Si Enterprise Holding Limited
Lai Si Enterprise is a leading commercial fitting-out contractor in Macau. Its major businesses cover services of fitting-out works as an integrated fitting-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 fitting-out contractor in Macau in 2015, with a market share of approximately 6.1%. The fitting-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.