Highlights:
- Turnover was HK$ 201.3 million, a n in crease of 7.3% compared to the corresponding period of 2004.
- Profit attributable to shareholders was HK$ 15.5 million, a n in crease of 29.7% compared to the corresponding period of 2004
- Turnover & net profits in the 1 st half of FY200 5 /0 6 showed improvements over the 2 nd half of last financial year:
- Turnover: up 3.3%
- Net Profits: up1 2.2%
- Basic e arnings per share was 4.7 HK cents.
- Interim dividend of 2.5 HK cents per share, representing a payout ratio of 53.41%.
(Hong Kong, 14 December 2005) – Synergis Holdings Limited ("Synergis" / the "Group") (stock code: 02340), a leading provider of comprehensive property and facility management services in Hong Kong, today announced its interim results for the six months ended 30 September 2005.
During the review period, the Group achieved a turnover of approximately HK$201.3 million, an increase of 7.3% over the same period in 2004. Gross profit increased 7.0% to approximately HK$41.6 million while profit attributable to shareholders increased 29.7% to approximately HK$15.5 million. Basic earnings per share were 4.7 HK cents compared to 3.6 HK cents for the same period last year. The Board of Directors has recommended an interim dividend of 2.5 HK cents per share for the six months ended 30 September 2005.
The improvement in the Group's interim results was benefited from the successes in changing portfolio mix. This is evidenced by diversified projects, namely up-market residential properties, facility management and non-residential projects, facility maintenance, property service contract and government sports centre, secured by the Group during the six-month period and up to the date of this report. The Group continued to expand its non-residential portfolio both by size and industry type. In addition to the existing projects, it is providing facility management service to Cheerful Court ( 彩頤居 ), a senior citizen residence developed by Hong Kong Housing Society and managed by Sheng Kung Hui ( 聖公會 ). In facility maintenance aspect, Hong Kong Catering Management Limited ( 香港飲食管理有限公司 ) appointed the Group as its service provider in providing facility maintenance services to its restaurant and bakery outlets. Despite severe competition from smaller-scale management companies in bidding PSC Contracts from the Hong Kong Housing Authority, the Group successfully secured a PSC Contract in the Batch 3/2005 tender and the contract with Kin Sang Estate ( 建生邨 ) under the Tenant Purchase Scheme (TPS). The Group also secured its first large scale recreational facility contract with the award of the management contract of Wong Chuk Hang Sports Centre by the Leisure and Cultural Services Department.
Turning to the Mainland operations, the Group has commenced assuming facility management responsibilities for the Live/Work Area ( 生活工作園 ) and providing the pre-management services to the Hub ( 創智中心 ) of Chuangzhi Tiandi ( 創智天地 ), the center piece of a Shui On development in Shanghai's Yangpu ( 楊浦 ) district. In Beijing, the Group's joint venture, 北京金融街新昌物業管理有限公司 ( Beijing Financial Street Synergis Property Management Co. Ltd), has started providing facility management services to the developer and tenants of Xihuan Plaza ( 西環廣場 ) , a modern office complex consisting of 92,586 sq. m. of office space and a mega shopping mall of over 87,800 sq. m. In addition to Shanghai and Beijing, the Group successfully secured a property management consultancy contract for a luxurious residential development, the Elite Plaza ( 領世華府 ), with 97,600 sq. m. in the consulate area of Qingdao ( 青島 ), Shangdong ( 山東 ).
Mr. C. H. Fan, Managing Director of Synergis commented: "Looking forward, the successful re-launch of the Real Estate Investment Trust by The Link Management Limited ("The Link") in November 2005 provides an opportunity for Synergis to help The Link achieve its objectives of "optimizing the performance and enhancing the overall quality" of its property portfolio. In particular, we note that as stated in its offering prospectus, The Link's efforts on operational enhancements will focus on disciplined and efficient asset management and cost control and improvement in operational efficiency and reduction in operating costs. Synergis believes it is well positioned to capture this business opportunity because it has an established platform of management solutions which can be readily tailored to meet higher standards and expectations of The Link's management, its tenants and customers".
"We believe that the "Total Maintenance Scheme" proposed by the Hong Kong Housing Authority to improve estate maintenance services in public rental estates and the "Mandatory Building Inspection Scheme" proposed by the Building Department to enhance building safety, will present further business opportunities for the Group in both facility maintenance and maintenance management. The implementation of the "Total Maintenance Scheme" should translate into additional planned maintenance work in PSC Contracts. The introduction of "Mandatory Building Inspection Scheme" will provide an opportunity for Synergis to help building owners in areas such as providing advice on common compliance issues, day-to-day operational management, and project supervision". Mr. Fan added.
"Moreover, our success in Shanghai and Beijing has reinforced our brand position in those markets, where there is an increasing demand for high-quality, professional and comprehensive property and facility management services from international property developers and real estate institutional investors. Mr. Fan concluded. "
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