Reinforces Its Leading Market Position by Recording Strong Growth in Financial and Operational Performance
HONG KONG, Aug 7, 2014 - (ACN Newswire) - C Cheng Holdings Limited ("C Cheng Holdings" or the "Group;" stock code: 8320), one of the leading comprehensive architectural service providers in Hong Kong and the PRC, today announced its interim results for the six months ended 30 June 2014.
For the six months ended 30 June 2014, the Group's financial and operational performance recorded strong growth, with revenue increasing by 23.6% to approximately HK$183.6 million (2013: HK$148.5 million), mainly attributable to the higher revenue generated by the provision of services in architecture, landscape architecture, town planning, interior design and heritage conservation during the period under review. Gross profit for the six months amounted to HK$56.4 million, representing an increase of 30.2% (2013: HK$43.3 million) and gross margin increased to 30.7%. Profit for review period surged 90.2% to $14.9 million (2013: 7.8 million).
During the period under review, the Group secured 55 new contracts with contract sums of approximately HK$189 million in Hong Kong, the PRC and other markets. As at 30 June 2014, the Group has remaining contract sums of approximately HK$977 million. Architecture has continued as the mainstream practice of the Group, contributing 94.2% of the revenue. Besides architecture, the Group's other services comprising: (a) landscape architecture; (b) town planning; (c) interior design; and (d) heritage conservation maintained a stable revenue contribution.
During the review period, the Group has proactively expanded its business operation. As at 30 June 2014, the Group has around 626 employees, a significant increase in comparison to the previous year (30 June 2013: 532 employees). Apart from extending the operations of the Hong Kong office for landscape architecture, town planning and interior design, the Shenzhen, Shanghai and Guangzhou offices were enlarged with office safe and facilities as well. Moreover, a 3D printing technology company was established.
Mr Ronald Liang, Chairman of C Cheng, said, "We are delighted to have achieved encouraging growth in both revenue and profit during the review period. Several key initiatives were carried out including an upgrade of the Group's information technology infrastructure, the completion of various marketing activities in the PRC, and the expansion of the Group's offices and teams. With the implementation of the new business initiatives together with the Group's proven track record, I am confident that C Cheng will be able to maintain its strong position to seize every advantage of its business opportunities to enhance our competitive advantages and ensure sustainable growth."
Leveraging the Group's accumulated experience in both design and project execution and effectively applying its expertise in its multi-centre operation model will enhance the Group's market position and generate sustainable growth. The Group will continue to actively explore further areas of expansion opportunities by setting up more branch offices and joint ventures in order to provide 5-star high-end hospitality interior design and entertainment venue theme design services.
Mr Ivan Fu, Chief Executive Officer of C Cheng, concluded, "Looking ahead, I am optimistic that the new establishments will become solid pillars to support the expansion of the Group's capabilities to attract and service new clientele and to advance new business development. With the PRC and Hong Kong markets as a foundation, we will expand our business to overseas markets stage-by-stage, in order to strengthen our network and extend our penetration globally as we strive for even greater accomplishments in the future."
About C Cheng Holdings Limited
C Cheng Holdings is a leading comprehensive architectural services provider in Hong Kong and China, specializing in architecture, landscape architecture, town planning, interior design and heritage conservation. New BIM and 3D printing services had also been launched to broaden the Group's business services. The Group has achieved extensive business coverage in the Greater China region with offices in Hong Kong, Shenzhen, Guangzhou, Shenyang, Chengdu and Shanghai. Enjoying widespread market recognition, the Group has obtained certification as a Band 1 List of Consultants of AACSB in Hong Kong and Grade A Qualification in the PRC.
Source: C Cheng Holdings Limited
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