Tag: Hong Kong

Bortex Global Limited (“Bortex” or the “Group”) (stock code: 8118), an expanding manufacturer and exporter of LED lighting products, today announced its FY2020 unaudited first-quarter results for the three months ended July 31 2019 (“Period Under Review”).

In the Period Under Review, the Group’s revenue grew year-on-year by 60.6% to HK$44.8 million (three months ended July 31 2018: approximately HK$27.9 million). Profit for the period surged by 170.0% to HK$5.4 million (three months ended July 31 2018: approximately HK$2.0 million) and gross profit rose by 55.4% to HK$11.5 million (three months ended July 31 2018: approximately HK$7.4 million). The sharp increase was mainly attributable to the significant climb in revenue of LED decorative lighting products welcomed by customers in Hong Kong and Canada.

Despite that, as a result of the trade tensions between the US and China, and uncertain global economic outlook, the Group has strived to increase sales in Hong Kong, Canada and other regions to counter the decrease in sales in the US. During the review period, the total revenue from Hong Kong and Canada surged by an impressive 141.7% to approximately HK$40.6 million (three months ended July 31 2018: approximately HK$16.8 million). The Group sought to mitigate the impact from the Sino-US trade conflict by focusing on maintaining cooperation with long-standing customers. Revenue from LED decorative lighting products recorded a 61.7% increase to approximately HK$44.3 million (three months ended July 31 2018: approximately HK$27.4 million), accounting for 98.8% of the Group’s total revenue.

The Group’s LED luminaire lighting series business has been recovering gradually. Revenue of the business for the Period Under Review had an approximately 25% increase to HK$0.5 million (three months ended July 31 2018: approximately HK$0.4 million). The Group is optimistic about the performance of the business segment moving forward because it has had success with customer development and completed the production line upgrade during the year ended 30 April 2019.

To avoid risk from the volatile and trade-driven market, the Group focused on cultivating relationship with existing customers as well as expanding its product portfolio. During the year, the Group has been exploring setting up a new production line in Phnom Penh, Cambodia. A new company set up through the Qualify Investment Project (the “QIP”) of the country is entitled to tax benefits for importing raw materials, semi-products and machinery from China and exporting light products to the US.

Looking ahead, the Group will continue to design and develop new lighting products so as to set itself apart from its peers and enhance its competitiveness in the specialised LED lighting market. Moreover, it will tighten cooperation with customers to ensure it can deliver just-in-time service to meet customers’ needs. It will also closely monitor market conditions and strengthen brand exposure in the market, so that it may create greater value for shareholders.

According to South China Morning Post, after reporting steady interim results for the six months to the end of June, Legend Holdings is confident about prospects for its various business divisions during the rest of the year, despite uncertainties caused by trade tensions and the general economic environment.

The first half saw total revenue of RMB179.3 billion, representing a 15 per cent increase year-on-year, which continued a trend of steady growth for the fifth consecutive reporting period since 2017.

In particular, this was thanks to the performance of strategic investments, most notably in IT, where revenue increased to RMB163,998 million, up 14 per cent compared with the same period last year, and in financial services, which achieved a 119 per cent year-on-year gain in revenue.

The figures for the agriculture and food segment were also impressive, with improvements in Joyvio Group’s fruit and animal protein businesses leading to 17 per cent overall revenue growth for the reporting period. And elsewhere, investment income and gains from the group’s financial investment segment rose to RMB1,290 million from the RMB469 million recorded for the first half of 2018.

This was achieved at a time when changes in the external environment, particularly with regard to domestic financing, interest rates and the ongoing China-US trade dispute created new uncertainties.

Thus the profitability of strategic investments faced extra challenges, with a need to enhance risk management systems and respond to market developments and tighter regulatory requirements.

In view of that, net profit attributable to equity holders amounted to RMB2.665 billion, which represented a slight decrease year-on-year. This followed a fall in net profit from strategic investments to RMB1.975 billion for the period, which was caused mainly by a decrease in gains from capital operations.

The group’s IT, agriculture and food, and innovative consumption and services segments all achieved profits at an operational level and continue to benefit from positive fundamentals. Significantly too, the net profit from financial investments attributable to shareholders climbed to RMB1.35 billion, a year-on-year increase of 187 per cent, signaling growth in both distributable income and fair value.

“By ensuring our fundamentals operated under safe and reliable conditions, we are heading firmly and steadily towards our established strategic goals.” said Liu Chuanzhi, chairman of Legend Holdings.

In addition, the company noted that during the reporting period seven companies within the group’s portfolio completed initial public offerings. One other completed a material asset acquisition, and a further two were incorporated into public companies through a restructuring of assets. Also the CSRC formally accepted IPO applications by Levima Advanced Materials and EAL.

Zhu Linan, president of Legend Holdings stated: “The group will continue to facilitate the development of portfolio companies by providing all-round support and monitoring credit and operational risks.”

Key highlights for the period in the financial services segment included the performance of group subsidiary BIL, the third-biggest bank in Luxembourg in terms of market share and an institution recognized as systemically important by the European Central Bank. BIL provides universal banking services for retail, corporate, private banking and capital market clients.

It maintained stable growth, with AUM (assets under management) reaching EUR41.9 billion as of June 30, a 6.1 per cent increase over the past six months. Customer deposits and loan balances were EUR18.3 billion and EUR14 billion, which represented respective growth of 5.8 per cent and 4.6 per cent since the end of 2018.

Separately, associate company Lakala Payment successfully completed its initial public offering and listing on the ChiNext board of the Shenzhen stock exchange in April, thereby contributing diluted earnings with an amount of RMB265 million. The company mainly provides third-party payment and other value-added services.

In the area of innovation consumption and services, the group’s strategic investment in Better Education, made back in 2017, continues to see steady growth.

In operation for more than a decade, the enterprise now runs a network of 111 kindergartens, nine early learning centers and various training schools covering 39 cities across China. Another 14 new kindergartens are planned to open in cities including Shanghai, Suzhou and Guangzhou.

Within that segment, the performance of Shanghai Neuromedical Center is also giving good cause for optimism. Revenue during the reporting period reached RMB138 million, an increase of 11.3 per cent from the same cut-off point a year earlier, with net profit coming in at RMB5 million. This improved result has been achieved through an emphasis on technology and service and enhancing the hospital’s brand.

“In general, the uncertainties brought by international politics and macroeconomic circumstances will remain for some time,” Liu said.

“With this in mind, Legend Holdings should focus on strategy, carry out sufficient research, and be aware of changes in the business environment. We should also make good use of the great advantages of China’s huge market, while continuing to pay close attention to forward-looking exploration and investments in scientific and technological innovation. “

“At the same time, we need to keep a watchful eye on overseas investment opportunities, welcome changes, and continuously provide returns to shareholders, thus contributing to China’s economy.”

Legend Holdings Corporation ( “Legend Holdings” or the “Company”; Stock Code: 3396.HK) today announced its unaudited condensed consolidated interim results for the six months ended June 30, 2019 (the “Reporting Period”). During the Reporting Period, the revenue of the Company increased by 15% year-on-year to RMB179.311 billion. The net profit attributable to equity holders of the Company amounted to RMB2.665 billion and basic earnings per share was RMB1.14.

Mr. Zhu Linan, president of Legend Holdings, stated: “Confronted with uncertainties from the global macro environment and downward pressure on economic growth, Legend Holdings has resolutely implemented its established strategy and maintained steady development in its overall business. In the first half of the year, in line with a changing market environment, the Company actively took measures to ensure the stability of business fundamentals and operating safety of the Company. Strategic Investments business proactively strengthened risk prevention and control, continuing to promote the capital operation of portfolio companies to establish their diversified financing capacity. Financial Investments business continued to promote fundraising which achieved outstanding results, while strengthening portfolio management and resource recycling, thus ensuring sound cash inflow and increase in fair value to Legend Holdings. In the future, Legend Holdings will continue to enhance the fundamentals of portfolio businesses and operation profitability, and assist portfolio companies in strengthening their capability of risk resistance and competitiveness through proactive and in-depth post-investment management and value-added services. We will also continue to optimize our investment portfolio and pay attention to resource recycling and efficiency improvement. Meanwhile, we will further conduct research on and promote the resource synergy of our portfolio companies and strive to improve the profitability and value of the Company.”

Strategic Investments continued to expand its business scale and the fundamentals grew steadily

In the first half of 2019, despite a number of external challenges, Strategic Investments business continued to expand its business scale. The Company took active measures to ensure the stability of its business fundamentals and the operating safety. The revenue from it increased by 15% year-on-year to RMB178.986 billion, recording growth for the fifth consecutive reporting period.

IT segment continued to promote the transformation and achieved good growth. Revenue from this segment increased by 14% year-on-year to RMB163.998 billion and the net profit attributable to equity holders of the Company generated a 159% year-on-year growth to RMB598 million.
Thanks to its Intelligent Transformation strategy, Lenovo realized a record-breaking market share of 25.1% in PC Business, further enhance its industry-leading profitability. The mobile business remained profitable and continued to improve its profitability. Data Center Group’s losses have been continuously narrowed. In the future, Lenovo will keep pace with the Intelligent Transformation strategy and strive to be the industry leader.

Business structure of financial services segment was well improved with strengthened risk resistance capacity, the revenue up to RMB4.342 billion representing an increase of 119% year-on-year with the net profit attributable to equity holders of the Company coming in at RMB1.043 billion.
During the Reporting Period, financial services segment closely responded to macro-economic and regulatory trends, correspondingly adjusted the business structure and scale and continuously improved the risk control capability, while actively searched for opportunities in insurance and securities to propel portfolio companies to go public. During the Reporting Period, Lakala Payment was listed on the ChiNext Board of Shenzhen Stock Exchange, which contributed good income. Based on its study and evaluation on the macro-environment, Zhengqi Financial focused on high-tech industries and relevant ecological chains and reduced its scale of capital-based business, while its scale of investment business remained stable. JC Finance & Leasing continued to reinforce its business layout and market expansion which brought rapid growth. The revenue and net profit reached RMB500 million and RMB120 million respectively.

As a new pillar asset of Legend Holdings, Banque Internationale a Luxembourg (BIL) has grown steadily for one year from its acquisition with stable and positive ratings and repeated market recognition. Assets under management (AUM) increased by 6.1% reaching EUR41.9 billion compared with that at the end of 2018. During the Reporting Period, the revenue and net profit amounted to EUR265 million and EUR45 million respectively, and CET-1 ratio stood at 11.73%. The Retail, Corporate and Wealth Management business of BIL delivered a good performance. At the same time, BIL approved its strategic plan for the period from 2020 to 2025, in which expanding the Chinese market is one of the major priorities in the future.

Innovative consumption and services segment continued to develop the existing business and promote value enhancement, while seeking investment opportunities. The revenue from this segment recorded RMB429 million.
Better Education’s fundamentals are still solid despite the effect from the education industry policies. As a leading kindergarten group with direct operation networks of middle and high-end kindergartens in China, it directly ran 111 kindergartens and 9 early learning centers and training schools. Shanghai Neuromedical Center put emphasis on technology and service quality, promoted business progress and enhanced the hospital brand. Thus, it welcomed an interim profit for the first time. CAR focused on its core business and strengthened the application of advanced technologies. During the Reporting Period, CAR recorded the revenue of RMB3.741 billion and net profit of RMB279 million, representing a year-on-year increase of 22% and 106%, respectively.

The agriculture and food segment witnessed rapid development, the revenue of which increased by 17% year-on-year to RMB7.491 billion with net profit attributable to equity holders of the Company amounting to RMB112 million.
Joyvio Group categorizes fruit and high-end animal protein as its two main business lines, and actively plans its business layout in fresh semi-finished products and agro-food technology. During the Reporting Period, Joyvio Group continued to increase its shareholdings in Golden Wing Mau, further enhancing the strategic value of Golden Wing Mau as a fruit business platform. The revenue of Golden Wing Mau whose main products are quality fruits grew rapidly, gaining broader brand influence of “Joyvio”. The “global resources + China’s market” strategy of Joyvio Agriculture has made a major breakthrough and successfully materialized the first project involving cross-border merger and acquisition of upstream high-quality salmon resources overseas by a Chinese enterprise, which further consolidated its ability to control scarce and high-quality upstream resources. Joyvio Agriculture’s existing businesses remained stable, preserving its leading position in the industry. KB Food has been awarded the title of Best Seafood Supplier for three consecutive years, which continuously consolidated its leading position in Australian market. In addition, Huawen Food in which Joyvio Group holds shares formally submitted its A-share market IPO application, which has been accepted.

The advanced manufacturing and professional services segment achieved profit growth. The net profit attributable to equity holders of the Company increased by 59% year-on-year to RMB236 million and the revenue recorded RMB2.726 billion.
During the Reporting Period, benefiting from the further optimization of its product mix and continuous improvement in operation, Levima Group recorded a net profit of RMB242 million, representing a year-on-year increase of 98%. Levima Advanced Materials, a subsidiary of the Company, maintained the leading level in the industry and has made positive progress in scientific and technological innovation. At the same time, Levima Advanced Materials is actively preparing for the A-share listing and completed counselling and inspection, and received the notice of accepting its IPO and Listing application from CSRS. Zeny Supply Chain turned losses into profits mainly due to the optimization of heavy asset. Facing the serious market challenges, EAL continued to improve its efficiency in operation. In addition, CSRC also formally accepted the IPO application of its A-shares.

Revenue from the Financial Investments was increased, with remarkable fundraising. 

Financial Investments business paid more attention to improving the fundamentals of the asset portfolio, managed to exit projects by seizing the opportunities in the capital market, and made proper efforts in resources recycling, which contributed to sound cash inflow and increase in fair value to Legend Holdings. During the Reporting Period, net profit attributable to the equity holders of the Company increased by 187% year-on-year to RMB1.350 billion. In addition, although facing continuous market volatility, the fund raising through the associate funds continued to achieve outstanding results which proved the market recognition and competitiveness at each platform. 

Legend Star managed 5 funds, of which the total AUM exceeded RMB2 billion with an aggregate of over 250 onshore or offshore investment projects to date. During the Reporting Period, Legend Star had nearly 20 onshore or offshore new investment projects. Among the projects under management, over 30 projects had follow-on financing, while 5 projects were exited. Legend Star has gained considerable investment incomes and achieved value enhancement.

Legend Capital managed 21 funds, of which the total AUM exceeded RMB50 billion. A total of 64 portfolio companies of Legend Capital have been successfully listed to date. During the Reporting Period, the total raised fund amounted to RMB7.877 billion, including a total of RMB3.481 billion newly raised. During the Reporting Period, Legend Capital completed 13 new project investments, fully or partially exited 22 projects. Among the enterprises under management, 6 of which completed the listing and the application for the listing of A shares of 1enterprise has been approved, contributing a cash inflow of over RMB600 million.

Hony Capital managed 11 funds, of which the total AUM exceeded RMB80 billion. A total of 45 portfolio companies of Hony Capital were successfully listed and another 3 were listed on NEEQS to date. During the Reporting Period, the cultural industry fund completed a new round of delivery with a size of RMB970 million. Hony Horizon Fund Management Co., completed a new fund raising – Hony Horizon consumption and upgrading hybrid fund (fund code: 006644), with a net subscription amount of RMB404 million. The AUM of the 2 public funds in management amounted to an aggregate of RMB610 million. During the Reporting Period, Hony Capital completed additional investment in 6 existing projects, fully or partially exited from 14 projects, and 2 of its portfolio companies got listed in China’s capital market. Hony Horizon SOE transformation and upgrading hybrid fund established its position, while consumption upgrading hybrid fund is still building its position.

Mr. Liu Chuanzhi, chairman of Legend Holdings, stated: “At present, the uncertainties brought from international politics and macroeconomic circumstances will remain for some time. With this in mind, Legend Holdings should stand strategically higher, carrying out sufficient research afore environmental changes. By ensuring our fundamentals operated under safety, we will firmly and steadily head to our established strategic goals. The Company should also make good use of the great advantages of China’s huge market, while continuing to pay close attention to forward-looking exploration and investments in scientific and technological innovation. At the same time, we need to keep a watchful eye on overseas investment opportunities, welcome changes, and continuously provide returns to shareholders, thus create great contributions to China’s economy.”

About Legend Holdings Corporation

Legend Holdings is a leading large investment holding company in China, and has created an innovative two-wheel-drive business model of “Strategic Investments + Financial Investments”. Strategic Investments business invests in 5 segments including IT, financial services, innovative consumption & services, agriculture & food, and advanced manufacturing and professional services. Financial Investments business includes angel investment, venture capital and private equity investment, covering all stages of a company’s life cycle. Over the past 30 years, under the leadership of Founder and Chairman, Mr. Liu Chuanzhi, and President, Mr. Zhu Linan, by understanding on important themes of China’s economic development, implementing flexible investment strategies, extensive management experience, value discovery and creation, Legend Holdings acquires and manages excellent investment portfolios with high potential, and has cultivated a number of influential and outstanding enterprises at home and abroad. We also promote the business synergy among associate companies, and continuously optimize our asset portfolio to achieve sustained value growth.

Chiho Environment Group Limited (“Chiho Environment” or the “Company”, stock code: 976.HK; together with its subsidiaries, the “Group”), announced its unaudited interim results for the year ended 30 June 2019 (the “Reporting Period” or the “Period”). 

The ongoing China-US trade dispute, the slowdown of the industrial activities in Europe, and the changes in China’s Catalog for Administration of the Import of Solid Wastes all led to a weaken demand for scrap metals, coupled with the drop in scrap prices as compared to the first half of 2018, revenue of the Group amounted to HK$8,700.3 million in the first half of 2019, it was HK$11,062.2 million for the same period in 2018. Gross profit was HK$515.6 million, and the gross profit margin was 5.9%, which was mainly attributable to the lower tonnage processed in our China facilities as a result of the import restrictions on scrap motors in China and rising energy and transportation costs as compared to last year. The Group sold in aggregate over 2.51 million tonnes of recycled products in the first half of 2019, and 2.75 million tonnes sold for the same period of last year. EBIT for the reporting period was HK$94.5 million, post-tax profit attributable to shareholders of the Company was HK$2.0 million, and net profit after tax margin was 0.02%.

The Group’s financial resources remained stable and steady. As at 30 June 2019, the Group had cash, various bank balances and pledged bank deposits amounting to HK$829.2 million, the current ratio was 1.06. Inventories as at 30 June 2019 were HK$1,653.6 million, the inventory turnover days was 41 days. The Group adopts a tight management on credit exposure. Trade and bills payable as at 30 June 2019 were HK$1,004.6 million, having decreased from HK$1,042.9 million as at 31 December 2018.

Consolidated the market advantages in Europe and America
Actively strengthened the presence in the Asian Markets

Europe segment provides all steps in recycling of mixed metal scraps and is equipped with one-stop shop service for collecting, gathering, sorting and processing. The Company is a technology leader in the processing and recycling of ferrous and non-ferrous metals worldwide, owned many advanced processing technologies in scrap metal shredding and post-shredding processing. Scrap metal shredding services, including cleaning, sorting, shearing, shredding, and pressing, constitute a “One-Stop-Shop” process for all customers and cater to any metal supply needs. In post-shredding technologies, the Company is able to achieve approximately 97% recovery rate for End-of-Life Vehicles (“ELV”), ranking as a world leader. During the reporting period, total segment sales tonnage in the European segment was 2.17 million tonnes, segment revenue was HK$6,911.7 million, the gross profit reached HK$485.1 million, gross profit margin was 7.0%, it was 8.3% for the same period of last year, segment profit was HK$178.6 million.

The North America segment possesses extensive recycling process know-how in all relevant process steps from collection, sorting, processing to trading of materials. The North America segment has also commenced its scrap motor mechanical shredding and dismantling as well as used auto parts business. It operates state-of-the-art shredder technology and has extensive post-shredding technologies in place for recovery optimisation. For the six months ended 30 June 2019, the North American sales tonnage was 0.25 million tonnes, segment revenue was HK$843.5 million, gross profit was HK$60.9 million, gross profit was 7.2%, it was 8.2% for the same period of last year, the segment profit was HK$12.0 million.

The Company’s major production facilities in Asia include Yuen Long (Hong Kong), Taizhou (Zhejiang) and Yantai (Shandong), and has expanded to Malaysia in the first half of 2019. For the first six months of 2019, total segment sales tonnage and revenue in Asia segment was 0.09 million tonnes and HK$1,094.2 million, respectively. In response to the revisions under the Catalog for the Administration of the Import of Solid Wastes, the Group is relocating its scrap motor dismantling business from China to our new processing yards in South/South East Asia, and thus, the sales tonnage and overall gross profit have been temporary affected. As the new production facilities in South/Southeast Asia are coming into full operation, the performance of the Asia segment will gradually recover.

In the first half of the year, the Group formed separate joint ventures in India and Malaysia with Century Metal Recycling Group (“CMR”, India’s largest producer of aluminum and zinc die-casting alloys) and with Heng Hup Group (“Heng Hup Group”, a leading scrap ferrous metal trader in Malaysia) respectively to engage in scrap motors and other mixed scrap metal dismantling business. The formation of the joint ventures will not only bring mutual benefit to each party but also provide an excellent opportunity for the Group to further strengthen our presence in the Southeast and South Asian markets.

Mr. Qin Yongming, Chairman and Chief Executive Officer of Chiho Environmental Group Limited said: “For the first half of 2019, the Group continued to operate in our long-established markets and also have been expanding into new markets in South/Southeast Asia. Through the geographic diversification, Chiho Environmental Group is in a good position to mitigate the risks of overly relying on a single market. For Europe, rising carbon tax is pushing metallurgical industries to use more scraps metals instead of mineral ores. We also see that trend in China due to tightening environmental legal enforcement. For US, the domestic economy is still strong and unemployment rate is at low levels, despite concerns about slowing economy. Our US operations are adopting to the challenging macro environmental. Our business in China is currently undergoing transformation which is always going to be accompanied with a transition period and challenges. However, from the long-term perspective, with more clarification of the relevant national policies and improvement in the Chinese domestic market, such as the waste separation campaign that is currently undergoing in many cities in China, the change in the ELV Directives in China, the Company will be poised to benefit from its industrial strengths in terms of many aspects, and together with the Group’s experiences and network in the European and American markets. It is worth mentioning that the Group ranked one of the Top 500 Enterprises in China 2019 recently released by Fortune, demonstrating our strengths and outstanding business foundation.”

About Chiho Environmental Group Limited 
Chiho Environmental Group Limited (“CE”, 976.HK) is the largest metal scrap recycling and processing company in China as well as one of the largest listed metal recycling companies in the world, primarily engaged in the recycling of ferrous and non-ferrous metal scraps, end-of-life vehicles (“ELV”) and electronic waste, waste oil recycling and the production of recycled aluminum ingot. The business of the Group currently covers Asia, Europe and America, operating more than 200 processing plants. The Group has advanced technologies which make it become one of a few recyclers in the world capable of handling and recycling a diverse range of materials and become the leader in the industry. Employing the “Urban Mining” concept to recycle reusable resources, Chiho aims to reduce our impact on the environment, reliance on natural resources and our carbon footprint. In 2018, the Group processed and sold 5.29 million tonnes of metals, contributing to an approximate saving of 4 million tonnes of CO2, doing its part in environment protection and creating a sustainable economy.

Analogue Holdings Limited (“Analogue” or the “Company”, together with its subsidiaries collectively as the “Group”) (stock code: 1977) has announced today its first interim results for the six months ended 30 June 2019 (“the Period”) since its listing on the Main Board of The Stock Exchange of Hong Kong Limited (“HKEX”) on 12 July 2019.

Highlights
– Revenue amounted to HK$2,079.3 million, net profit attributable to shareholders amounted to HK$107.8 million
– Satisfactory order intake in 1H 2019 of value HK$3.52 billion, an increase of 31% YOY
– Outstanding contracts in hand of all four business segments increased to HK$8.87 billion, an increase of 23% YOY

For the period under review, the Group recorded revenue of HK$2,079.3 million and gross profit of HK$364.9 million, with gross profit margin increased 1.1% to 17.5%. During the first half of 2019, the Group has put in great effort to replenish and build its order book, following a year of record high business turnover in 2018. Within the Period, a total of approximately 637 tenders or quotations each of an individual value of over HK$1 million had been submitted, among them approximately 150 tenders and quotations were awarded with the total value of approximately HK$2.91 billion. It was particularly encouraging that all four business segments, namely Building Services, Environmental Engineering, Information Communication and Building Technology (ICBT), and Lifts and Escalators, have recorded an increase in outstanding contracts in hand as compared to the corresponding period in 2018, with an overall value of approximately HK$8.87 billion (including contracting work, maintenance work and sales of good), representing an increase of approximately HK$1.66 billion year-on-year.

Dr. Poon Lok To Otto, Chairman and Executive Director of Analogue Holdings Limited, said, “The listing on the Main Board of The Stock Exchange of Hong Kong Limited earlier this year marked a major milestone for the Group. The successful listing has undoubtedly provided an effective platform for furthering our future development and expansion in the market, as well as recognised the Group’s leading position as the largest E&M engineering service provider in Hong Kong with over 40 years of experience in providing multi-disciplinary and comprehensive E&M engineering and technology services to a wide range of projects and sectors in Hong Kong, Macau and Mainland China. During the Period, we have secured numbers of new projects across four business segments, including those requiring innovation and technology. We will continue our cooperation with universities on research and development across disciplines for more innovative applications for business growth, thus enabling us to capture the immense opportunities set to come.”

Building Services
The Building Services segment remained the principal business and the key revenue generator of the Group, contributing HK$1,290.1 million in revenue for the Period, with its capability encompassing the design, installation, testing and commissioning and maintenance of various systems including the Heating, Ventiliation and Air-Conditioning (HVAC), fire services, and plumbing and drainage, with customers in Hong Kong, Macau and mainland China. 

During the Period, the Group secured the contract for the combined electrical and mechanical services installation of the Science Park InnoCell development project at Pak Shek Kok, which is one of the first projects in Hong Kong adopting the latest construction technology of Modular Integrated Construction (MiC). The Group also invested in innovative construction technologies and built up a strong capability in Building Information Modelling (BIM) which enables the Group to deliver projects in a better coordinated and more professional manner in the design, planning and construction stages. The Group also actively partnered with reputable main contractors to tender for infrastructure related projects, in order to maintain a favourable position for the Group to bid for other sizable third runway related projects of Hong Kong International Airport in the second half of 2019.

Environmental Engineering
The environmental engineering segment, which provides total solutions for the design, construction, operation and maintenance of environmental engineering systems and treatment plants, contributed revenue of HK$450 million for the Period.

The Group’s strong technological expertise and proven track records in project delivery set it apart from competitors. During the Period, the Group obtained a new patent in mainland China named “A system to inject gel material into a kiln” which enhances the performance of incineration process and produces cement from sludge. These inhouse advanced treatment processes give the Group a competitive edge not only for bidding tenders in Hong Kong but also tapping into the vast mainland China market which has set stringent environmental control standards and ambitious national environmental targets under its current five years plan. 

Information, Communication and Building Technology (“ICBT”)
Riding on the Hong Kong Government’s initiative to encourage “Smart City” development, ICBT segment is missioned to offer solutions to help build green and intelligent buildings and make Hong Kong a smart city through integrating a wide range of information and communication technologies with building energy and management technologies. During the Period, the segment recorded revenue of HK$215.6 million. 

The Group’s self-developed Cloud-based Chiller Plant Energy Management Platform has won the Silver Award in Smart Business (Big Data and Open Data Applications) in the Hong Kong ICT Awards 2019, followed by a number of related orders received from reputable customers. The Platform was proved to be able to provide about 10% further energy savings for the Beam Plus Platinum rated office building’s chilled water system. On top of the existing services under the ICBT business, the Group is also actively developing and growing business in new areas such as retro-commissioning of building services in existing buildings and Internet of Things (“IoT”) infrastructure installation for new and existing buildings. 

Lifts & Escalators
The lifts & escalators segment which includes design, manufacture (under the trade name of “Anlev”), sales, installation and maintenance of various lifts, escalators and moving walkways meeting different purposes and requirements, continued to see a steady growth in order intake, revenue and gross profit. In additon to general installation and maintenance projects, the segment had secured orders for modernisation of 43 lifts and completed 32 installations over the reporting period, and generated an improved revenue of HK$123.5 million for the Period. 

Anlev Elex Elevator Ltd, the Group’s wholly owned subsidiary, has obtained the highest rating in safety and quality performance for 26 consecutive quarters for both the Lift Contractors’ Performance Rating and Escalator Contractors’ Performance Rating systems of the Hong Kong Electrical and Mechanical Services Department since the commencement of the systems in January 2013. 

The Group had completed its first retrofit project in Hong Kong for highly constrained sites where access is very limited during the first half of the year, and sees a big market globally for similar escalator installation. With eyes on both local and oversea markets and capitalising on its outstanding performance ratings in safety and quality, the Group had been awarded its first order in Mexico and Portugal during the Period, while new distributorship agreements in Eurasia and Eastern Europe regions had been signed. 

Business Outlook
Against the backdrop of the multitude of market factors locally and globally, the Group managed to secure a satisfactory value of order intake and maintained a comfortable level of outstanding contracts in hand during the Period. It is foreseen that there will be a healthy pipeline of tenders, including many big ones, that will come out for tendering in 2H 2019 and beyond. 

Looking ahead, the Group will remain vigilant and place priority first and foremost on bolstering its four business segments while developing innovative solutions, processes and technologies for capturing new market opportunities. Meanwhile, the Group is actively exploring merger and acquisition opportunities to facilitate its business growth horizontally, vertically and geographically. Preliminary enquiries to companies in South East Asia and North America on building services and lifts and escalators segments had been made.

With the Group’s strong commitment and continuous investment in innovation, technology, process improvement and people development, we are confident in harvesting material benefits of improved productivity and competitiveness and opening of new business opportunities, which the Group believe will further strengthen its market leadership position and translate into increased shareholder value in the foreseeable future.

About Analogue Holdings Limited
Established in 1977 and headquartered in Hong Kong, the Group is the largest E&M engineering service provider in Hong Kong in terms of revenue in 2018[ ], with substantial operations in Macau and Mainland China. The Group provides multi-disciplinary and comprehensive E&M engineering and technology services in different segments, including Building Services engineering, Environmental Engineering, ICBT and Lifts & Escalators to a wide spectrum of customers from the banking, property development, education, entertainment, hospitality, information technology, data centres, transportation and utilities sectors, as well as departments of the Hong Kong SAR Government. The Group also manufactures and sells lifts and escalators internationally. Nanjing Canatal Data Centre Environmental Tech Company Limited, an associate of the Group, has been listed on the main board of the Shanghai Stock Exchange since November 2017.

Media Enquiries
Strategic Financial Relations Limited
Heidi So Tel: (852) 2864 4826 Email: heidi.so@sprg.com.hk
Angelus Lau Tel: (852) 2864 4805 Email: angelus.lau@sprg.com.hk
Adrianna Lau Tel: (852) 2114 4987 Email: adrianna.lau@sprg.com.hk
Website: www.sprg.com.hk

Analogue Holdings Limited
Lavin Chan Tel: (852) 2565 3311 Email: lavinchan@atal.com
Lois Cheng Tel: (852) 2166 7833 Email: loischeng@atal.com
Charmaine Cheng Tel: (852) 2166 7842 Email: charmainecheng@atal.com
Website: www.atal.com