Friday, November 27, 2020
 
Columnist
Martin Hennecke
 
VISION FAME
HKEx Stock Code : 01315 
 
Corporate Profile
The principal activity of the Company and its subsidiaries is to provide building construction services, property maintenance services, alterations, renovation, upgrading works and fitting-out works services.

Business Review - For the year ended March 31, 2013

(i) Building Construction

Building construction segment has demonstrated its underlying strength that revenue for the year was approximately HK$330,760,000 (year ended 31 March 2012: approximately HK$243,453,000). Segment profit for the reporting period was approximately HK$24,941,000 compared with approximately HK$31,129,000 in 2012. The result for the Group in this segment during the reporting period increased in segment revenue but decreased in segment profit. The increase in segment revenue was mainly due to a construction project in Singapore has been operated in full swing and another construction project in Singapore has also been commenced which resulting in more segment revenue being recorded during the reporting period. However the decrease in segment profit was primarily contributed by a recovery of revenue in the year ended 31 March 2012 in relation to disputes with one of our customers for the final contract amount for a building construction project completed in 2001.

(ii) Property Maintenance

The property maintenance segment reported a moderate but continuous growth in revenue. The segment revenue for the year was approximately HK$168,626,000, up by 7% from approximately HK$157,201,000 in 2012 and segment profit was approximately HK$11,980,000 grew by 20% from approximately HK$10,012,000 in 2012. The overall result for the Group in this segment was a moderate growth in both segment revenue and segment profit. The increase in both segment revenue and segment profit mainly due to a property maintenance term contract was in full swing, in particular more work orders being awarded and completed resulting more revenue and profit have been recognized during the reporting period. Despite the rising costs, the Group managed to maintain segment profits percentage comparable to that of last year. The Group would continue implementing methods to control project costs and strengthen operation efficiency.

(iii) Alterations, renovation, upgrading and fitting-out works

With good amount of contracts intakes in 2012, revenue for the A&A works segment for the reporting period was approximately HK$466,000,000 (year ended 31 March 2012: approximately HK$261,049,000) and segment profit was approximately HK$36,028,000 (year ended 31 March 2012: approximately HK$60,343,000). Turnover recorded in Hong Kong market was up by HK$267 million or 134%. The overall result for the Group in this segment was increase in segment revenue associated with decrease in segment profit and segment profit margin as compared with last year.

The segment profit and profit margin of last year was higher which was primarily benefited from the luxurious and high-end fitting out projects for an international casino gaming resort in Singapore last year.

During the reporting period, the A&A works segment worked on many prestigious projects including construction of several lift towers for Hong Kong Housing Authority, alteration and addition works at the Harbour City and various alteration and addition works for The Link Management Ltd.

Business Outlook - For the year ended March 31, 2013

The construction industry of the Group's current core geographical areas including Hong Kong, Singapore and Macau will remain energetic and continue to grow in coming years. The positive business environment would provide and further initiate abundant opportunities to our respective three business segments. The bright outlook is also substantiated by high levels of outstanding workload.

Benefiting from many major infrastructure projects and more ambitious public housing policies as implemented by the Government of Hong Kong, the outlook of construction industry in Hong Kong is prosperous.

In Singapore, implementation of several mega size infrastructure projects and residential development scheme, the Group is very optimistic about the growth of construction business in the country.

In Macau, gaming industry continue to grow vigorously. Majority of the major casino operators have announced or commenced their further plans on casino and hotel developments, the Group would benefit from their rapid expansion in the market.

Although the outlook of our core markets is very promising, it will bring both business opportunities and operating risk. The tremendous increasing demand of construction professionals, skilled labors and construction machines and equipments, as well as the increased of industry competition would continuously drive up the construction cost and would deprive our profit margin. In order to ensure reasonable returns to shareholders of the Company (the ¡¥¡¥Shareholders'') and sustainable growth, we have implemented a conservative approach when tendering and taking on new projects. We also have worked closely with our subcontractors and suppliers, developed construction initiatives in technology and design for effective and efficient production and reduced in demand for manpower to control cost.

We believe continuous economic growth of the People's Republic of China (¡¥¡¥PRC'') will offer further market opportunities. The Group will commence to develop business in PRC going forward. Our business plan will include provision of (a) building construction services to wellestablished property developers, (b) property maintenance services, (c) A&A works services, (d) landscaping services, (e) property management and (f) property investment and development.

In relation to provision of building construction services, we are also exploring potential merger and acquisition opportunities with major local construction companies in PRC for further expansion of our construction business and long-term development of the Group.

The Group strongly believe that there have been a robust demand to uplift the standard no matter in areas of building constructions, property maintenance, A&A works, landscaping services, property management and property development in PRC. Such business will provide a very good opportunity to leverage professional experience of our management team gained in the past and to invest building construction and management, property management, property investment and development business.

Apart from conventional construction business in Hong Kong, Singapore and Macau, the Group would actively explore construction related business, property management, property investment and development in PRC. We have strong confidence that the new business would definitely be one of the Group's key growth drivers. Besides the expanding capacity of the Group enable us to grasp the continuous rising opportunities in PRC. The Group will keep close eyes on the developments which deliver maximized returns.

With our broadened business scope and geographical base, quality track record and strong client base support by our competent and professional team, the Group is confident that it will advance healthy and strongly.

Source: Vision Fame Int'l (01315) Annual Results Announcement
Chairman Wang Zhijun Issued Capital (shares) 300M
Par Value HKD 0.01 Market Capitalisation (HKD) 474M
 
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