WAN KEI GROUP(01718) Earnings Summary
Bullish Points:
1. Revenue increased by 19.8% to HK$315,447,000 during the Reporting Period (YR2023) compared to YR2022.
2. Foundation construction revenue increased by 16.9% and ground investigation services revenue increased by 48.6%.
3. The Board expects a steady recovery in the construction and foundation industry in Hong Kong due to the gradual decline in COVID-19 cases and increased vaccination rates.
4. The Company aims to maintain stable and sustainable development while diversifying and expanding its businesses by seeking cooperation and investment opportunities in emerging industries.
Bearish Points:
1. Overall gross profit margin decreased to 17.1% (YR2022: 20.1%).
2. Foundation construction segment's gross profit decreased, mainly due to increased subcontractor fees.
3. General and administrative expenses increased by 37.9% to HK$82,350,000, mainly due to the recognition of impairment losses on credit-impaired trade receivable and credit-impaired loan receivables.
4. Net loss for the Reporting Period: HK$46,996,000 (YR2022: HK$12,757,000).
In summary, WAN KEI GROUP (01718) experienced an increase in revenue during the Reporting Period, primarily due to an increase in sizable projects tendered. However, the company also faced challenges such as a decrease in gross profit margin and an increase in general and administrative expenses. The company's future strategy will depend on the development of the pandemic and its ability to maintain stable and sustainable development while diversifying and expanding its businesses. For more information, you can read the original text of WAN KEI GROUP's financial report: https://static.tigerbbs.com/d1c756a7551a4baab7fd8dcc48a94b7c
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