Wing Fung Group posts 'modest' $1.3m profit increase in 2020
Its revenues also recorded an increase of 16.1% to $221.2m this year.
Wing Fung Group Asia Limited’s profit for the year increased by $1.3m to $22.6m in 2020 from $21.3m in previous year as the pandemic affected its operations.
The profit reflects a 26.8% rise to $27m, if adjusted to exclude the one-off expenses incurred for the proposed transfer of listing, the investment holding company said in its annual report.
“Despite the market downturn, and the suffering from temporary suspension of construction works in February and March 2020 leading to a decrease in the amount of work recognised during the first quarter of 2020 for the group, the group has remained resilient and recorded an increase in revenue for the year ended 31 December 2020 as compared to the year ended 31 December 2019,” the company annual report read.
The company generated a total of $221.2m revenue for the year, 16.1% higher than the $190.5m recorded n 2019. This was largely attributed to some $52.6m revenue increase from its new projects, particularly the two located at Chek Lap Kok.
Its existing projects also located in Chek Lap kok and at Freguesia da Sé in Macau brought in $134m worth of revenue, offset by a decrease of $116.1m in its other projects, particularly in Shatin and Taipa in Macau.
Wing Fung also noted its 2020 performance was partially affected by the suspension of a $164M (MOP170m) project in July 2020. The resumption of work on the said project is still pending further instructions.
“Whilst it is unclear how much longer the COVID-19 pandemic may last and the extent of impact on the local and global economy, the Group will continue to pay attention to the situation of the pandemic and assess its impact on the operations and financial performance,” the group said.
Wing Fung is engaged in subcontracting provision of supplies, installation and fitting-out services of MVAC system for private and public building projects. Its projects are located in Hong Kong and Macau.