Ching Lee Holdings (3728.HK) Stays Resilient in Gross Profit with Stress from Rate Hikes and Staff Costs
HONG KONG, June 26, 2024 – (ACN Newswire) – Ching Lee Holdings Limited “Ching Lee” or “The Group” (Stock code 3728.HK) announced its annual results for the year ended 31 March 2024. The Group recorded nearly HK$900 million in revenue for the year, marking a significant year-on-year growth of 26.5%. Gross profit amounted to HK$77 million, representing an increase of 7.3% from the last year, and profit for the year was approximately HK$11 million.
Over the past year, Ching Lee successfully gained several contracts for various construction projects, with revenue from superstructure building works services significantly increasing from approximately HK$610 million last year to over HK$880 million this year. To cope with the added construction projects, the Group has strengthened its workforce team with new hires causing a higher cost of revenue, and the enhanced operations led to an increase in financing needs. A slight decrease in profit for the year was seen, attributable to a substantial increase in finance costs from continuing interest rate hikes.
Mr. Ng Choi Wah, Chairman of Ching Lee, stated, “We are pleased with the financial results for the year. The strong revenue growth demonstrates our robust market expansion and growth capabilities despite the lower net profit impacted by external challenges.”
Looking ahead, the Group will continue to focus on improving operational efficiency and strengthening cost control while actively seeking diversified construction projects. We believe that with the gradual recovery of Hong Kong’s economy and the ongoing development of the Greater Bay Area, along with the government’s various construction initiatives, the construction industry will be offered numerous new opportunities in the future.
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Ching Lee Holdings Limited “Ching Lee” or “The Group”
Ching Lee Holdings Limited, a limited liability company incorporated under the laws of the Cayman Islands, is a contractor in Hong Kong with over 25 years of experience in public and private sectors. The principal activities of Ching Lee Holdings and its subsidiaries are the provision of construction and consultancy works and project management services in Hong Kong, engaged in providing substructure building works services, superstructure building works services, and repair, maintenance, alteration and addition (RMAA) works services. Ching Lee Holdings Limited was transferred from GEM board to the main board in HKEx on September 18, 2017 with stock code 3728.hk. Company website: http://www.chingleeholdings.com
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