2022-07-22-港交所-顺兴集团控股_2021-22年报_142页_2mb

The company, SH Group (Holdings) Limited, is primarily engaged in providing E&M engineering services in Hong Kong, focusing on mechanical ventilation and air conditioning systems, while also handling low voltage electrical systems. During the 2021-22 fiscal year, the company recorded revenue growth of approximately 6.5% compared to the previous year, but experienced a significant decline of 73.5% in profit. This decrease was attributed to intensified market competition, project delays caused by the Covid-19 pandemic, and higher material and transportation costs. The company's gross profit margin fell from 8.7% to 6.1%, reflecting reduced pricing power. Management anticipates recovery in the future and plans to capitalize on planned infrastructure projects and cross-border collaboration opportunities while implementing productivity measures such as Building Information Modeling (BIM) and modular construction. Financially, the company maintains substantial cash reserves and liquidity, funded by operating cash flows and retained profits, with no material loan facilities or guarantee commitments reported. The company's long-term prospects are viewed positively given the expected increase in infrastructure spending and potential deregulation, which may facilitate further growth in E&M services.