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Message from Chairman

Dear Shareholders,

On behalf of the Board, I am pleased to present the annual results for the Year of the Group.

Looking back on 2019, global financial markets fluctuated substantially due to various uncertainties including ongoing Sino-US trade dispute, United States interest rate cut and Brexit. As a result, it weakens retail and external merchandise trade in Hong Kong. This coupled with the continued social unrest in Hong Kong increased downside risks to economic and business sentiment. With a complex and constantly changing external environment, the Group strove to turn the current economic crisis into an opportunity by relying on its solid business foundations, branding advantages and core competitiveness in the industry. During the Year, the Group carried out a number of large-scale fitting-out projects, which maintained its solid profit growth and healthy financial position thus reinforcing its leading position in the industry.

During the Year, the Group’s revenue was HK$6,096.2 million (Previous Year: HK$5,390.8 million), profit for the year was HK$413.0 million (Previous Year: HK$381.2 million) and basic earnings per share was HK19.14 cents (Previous Year: HK17.66 cents). The Board does not recommend the payment of a final dividend for the Year. The interim dividend of HK2.5 cents per Share, equivalent to approximately 13.1% of the profit available for distribution for the Year.

The Group was successfully awarded dozens of projects and gradually expanded its business, backed by stringent project quality management, long-term and stable cooperative relationships with business partners and a respected reputation in the market. The Group completed 21 fitting-out projects with individual contract sum being not less than HK$50.0 million, and 15 alteration and addition and construction projects during the Year. Most of those projects were large-scale hotel guestrooms, residential properties and commercial buildings.

2019 was the 20th anniversary of Macau’s return to the PRC, the PRC’s government announced a number of preferential policies to support Macau’s development, which is expected to further accelerate the economic and social development of the territory. At the same time, the number of visitors on the Hong Kong-Zhuhai-Macao Bridge has continued to increase since its opening. Many individual hotels and major tourist attractions are connected with the opening of the Macau Light Rapid Transit Taipa Line, which is expected to be a great boon for tourism as well as the hotel and retail industries in Macau.

Furthermore, the Hong Kong Government has relaxed the ceiling on mortgage financing schemes for first-home buyers, which will release greater purchasing power. Together with the low interest rate environment in Hong Kong, housing demand will remain stable and support the need for fitting-out services. More importantly, the “Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area” was released at the beginning of the Year to build an international first-class bay area for living, working and travelling. Infrastructure and construction projects have become important economic support mechanisms for development, which facilitate the expansion of a growing number of residential properties, sizeable hotels, shopping malls and commercial buildings. Driven by strong demand, the Group is therefore cautiously optimistic for the future business prospects.

Looking ahead, we will pay close attention to national policies and proactively strive to for more projects. We will also expand our business scope, maintain good relationships with our business partners while providing high-quality services to enhance customer loyalty in order to consolidate and solidify the Group’s leading position in the highly competitive fitting-out industry in Hong Kong, Macau and the PRC.

On behalf of the Board, I would like to take this opportunity to express my sincere gratitude and thanks to our Shareholders, customers, business partners and other professional parties for their tremendous support, as well as the management of the Group and all the staff for their tireless efforts and contributions to the Group. We will continue to move forward and seize opportunities in today’s challenging environment in order to create maximum value for our Shareholders.

Liu Zaiwang