Revenue rises at Tat Hong
04 July 2022
Tower crane rental company Tat Hong Equipment Service Co. Ltd, In China, posted an almost double-digit increase in sales for the financial year ending 31 March 2022.
Revenue for the full year was RMB 867.0 million (US$129 million), up 9.3 % from the previous year. Tat Hong said the rise was “primarily due to the increase in the number of both self-owned and rented tower cranes, the majority of which had been working on-site and generating revenue.”
While revenue was up, gross profit was down 14.3 % to RMB 234.1 million ($35 million) for the period. Net profit was RMB 47.6 million ($7 million) down against the RMB 101.2 million ($15 million) of 2021. The company attributed the decrease to a non-cash adjustment to the value of the shares awarded to the company’s top management in March 2022. This was under a share award scheme contributed by the shares of the company owned by the controlling shareholders, Tat Hong said.
Commenting on the company’s performance Sean Yau, Tat Hong Equipment Service Co., Ltd. CEO, said, “FY2022 was a tough year not only to us, but to the entire market as well. Despite Covid-19 pandemic prevention and control measures, vaccination rates have begun to rise in various countries, and economies including China are gradually recovering. However, global public health, economy and employment are still adversely affected by it. With the continued occurrence of Covid-19 pandemic situation across the world, the global market is still facing many uncertainties under the pandemic. We will take this opportunity to expand new market opportunities and continue to provide customers with one-stop tower crane solution services.”
Tat Hong was the first foreign-owned tower crane service supplier in China. In the year to the end of March more tower cranes were added to the fleet as were associated ancillary parts and components to meet increasing demand.
A total of 1,180 tower cranes are managed by the Group for EPC projects in China. In the most recent period it had a total tower crane capability, of 3,112,084 tonne-metres in use. That was up 25 % from the 2,491,629 tonne-metres in use a year earlier.
At the end of March the Group had 288 projects on the go worth a total of around RMB 569 million ($85 million). In the pipeline were 42 projects with an expected combined contract value of around RMB 102 million ($15 million). From these the Tat Hong group expects to complete around RMB 497 million ($74 million) by the end of March 2023.
In outlook the company said it “will focus on operation of medium and large size tower cranes to meet the growing needs for prefabricated construction, and to establish a standardised post market service eco-system for tower cranes so as to provide a green, safe and environmentally friendly tower crane service foundation.”