Ruigang Construction (06816) disclosed the audited annual results for the year ended December 31, 2023. The company's revenue...
According to the Zhitong Finance App, Ruigang Construction (06816) disclosed the audited annual results for the year ended December 31, 2023. The company's revenue was HK$2,126 million, a year-on-year decrease of 26.2%; gross profit of HK$181 million, a year-on-year decrease of 17.9%; the company's equity holders should account for losses of HK$189 million, an increase of 1448.36% year on year; and a loss of HK23.61 cents per share.
Since travel restrictions were lifted in 2022, the Group has accelerated negotiations on some potential overseas projects and obtained a marine-related ancillary service project in the Philippines. Construction of the project began in FY2023, but construction was temporarily suspended from August 2023; the company learned from the project owners that the project still needs to wait for further administrative permits from the local government authorities before it can resume work. Although the Group has successfully reached a compensation agreement for the shutdown of the project, due to delays in project revenue generation and payback time, it had a negative impact on the Group's operating performance in FY2023. In Hong Kong, China, the Group was recently approved for a relatively large terminal construction project and a terminal maintenance project. The two projects are in the early stages and did not generate any real benefits in FY2023. Meanwhile, the Macau Maritime Construction Project, which the Group focused on in previous years, was basically completed at the end of 2022. As a result of the above factors, its marine construction business segment fell to a low point in the operating cycle in fiscal year 2023, and revenue was relatively low.