Van Shung Chong Holdings Ltd.
Announces FY2014/15 Annual Results
(EQS-News / 27/06/2015 / 01:02 UTC+8) 【For immediate release】- 26 June 2015 Van Shung Chong Holdings Limited (Stock code: 1001.HK) Announces FY2014/15 Annual Results Profit attributable to equity holders surged by 107.8% to HK$216 million 15.4% Increase in overall steel delivery A pioneer of automated reinforcement bar processing in Hong Kong Transforming to a value-added construction product provider The Group's steel business delivered 15.4% growth in tons sold and in spite of a global decrease in steel prices, was able to deliver consolidated segment revenue of HK$2.9 billion, just 0.6% below last year. Effective margin management, expense reduction, geographic expansion efforts and revaluation gains from property allowed the Group to deliver EBIT of HK$348 million and 205.3% improvement above the previous financial year. Profit attributable to equity holders increased by 107.8% to approximately HK$216 million. Basic earnings per share rose to HK39.72 cents and the Board of Directors recommended a final dividend of HK5.00 cents (FY2013/14: HK4.15 cents) per share for the Year. Steel Processing, Distribution and Recycling Business (the "steel business") The Group's steel business recorded a faster than industry growth in both Hong Kong and China, delivering an overall 15.4% increase in sales volume (tons) while reducing collection days and inventory turnover days. During the Year, the Group took solid steps to upgrade its value proposition and began construction of Hong Kong's first, automated reinforcement bar processing plant in Tsing Yi. Upon the commencement of production, this new plant will provide contractors with tested and ready-to-use products, thereby reducing the costs brought by inefficient on-site processing and lowering the impact of shortage of labour personnel in Hong Kong. By providing project specific, tailor made solutions, the Group has effectively moved from a product and price model to a difficult-to-duplicate value added processing and services model that allows for immediate top line growth and margin enhancement. In September 2014, the Group completed the acquisition of one of Hong Kong's largest steel recycling plants - He Tai. Upon the acquisition, the Group invested in processing automation, logistics, handling efficiency and space management with an aim to increase its scrap processing, reduce labor intensive processing and make effective use of available space to store and sell other products currently stored in third party warehousing. Building & Design Solutions Business After going through a major restructuring in FY2012/13 and FY2013/14, Building & Design Solutions ("BDS") now targets high growth segments like healthcare, elderly care, luxury hotels, transportation and high-end residential. The Group also introduced two new European brands in Hong Kong to provide customers product alternatives. As a result, BDS delivered 4.1% revenue growth and net profit grew by 330.9%. Revenue growth, excluding divestments related to a FY2013/14 restructuring, was 9.0% above the previous year. Hong Kong BDS recorded 19.0% revenue growth, while Wuhan and Changsha BDS recorded 32.6% revenue growth. Property Business In the Group's property segment, two significant investments were made during the Year and FY2013/14. They include the 100% purchase as well as upgrade of Central Park, a high-end commercial property in Putuo District, the new central business district in Shanghai, and the 29.44% acquisition of Metro Park, a deluxe serviced apartment complex operated and project managed by the Group. Strong and timely execution of the Group's business model which calls for investments in renovation and re-design as well as tenant mix upgrade, allowed the Group to deliver better-than-planned results in both profit and rental income. In the coming years, the Group anticipates good returns from property management and investments and plans to further expand its portfolio in Shanghai. Mr. Frank Muñoz, Chief Executive Officer of VSC, said, "VSC achieved solid growth and we are very pleased with our strong operational execution throughout the Year. Our steel group performed above and beyond our expectations in terms of margin and tons sold even as steel prices were constrained by historic supply excess as China's steel production outpaced global and regional demand. Our healthy balance sheet and solid performance across businesses provide a strong foundation for us to continue to invest in growth that returns value to shareholders." "We are now seeing the results of a transformation journey that started three years ago. We have modified business models to reflect market trends and have started an aggressive investment strategy in automation, complimentary acquisitions and a regional expansion strategy that includes Mainland China and Asia Pacific. We are now closer to reaching our true potential and our results prove it. In the months to come, we will work to integrate acquisitions, complete construction of Hong Kong's first automated reinforcement bar processing plant and will continue our geographic expansion and product diversification efforts." Mr. Andrew Yao, Chairman of VSC, said, "VSC's ambitious and transformative agenda executed in FY2014/15 not only laid a strong foundation for the future but also allowed for strong financial performance throughout our businesses. By aligning with China's own macroeconomic focus and the enormous opportunities brought by "One Belt One Road" and the formation of the Asian Infrastructure Investment Bank, we will continue to invest in processing and services to offer our customers a unique value proposition to generate sustainable value-added growth in the years to come." - End - This press release is issued by DLK Advisory Limited on behalf of Van Shung Chong Holdings Limited. For enquiries, please contact: DLK Advisory Michelle Shi (michelleshi@dlkadvisory.com) Hazel Chan (hazelchan@dlkadvisory.com) Skye Shum (skyeshum@dlkadvisory.com) Tel :+852 2857 7101 Fax:+852 2857 7103 End of Press Release +++++ Document: http://n.equitystory.com/c/fncls.ssp?u=PTSLIWCDCJ Document title: 1001_2014-15AR_Press Release_Eng_20150626_FINAL --------------------------------------------------------------------- 27/06/2015 UTC+8 Dissemination of a Press Release, transmitted by EQS TodayIR - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. Media archive at www.todayir.com --------------------------------------------------------------------- 372741 27/06/2015 UTC+8
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