SINGAPORE (Aug 4): Tower crane manufacturer Yongmao Holdings posts a 16.3% decline in earnings to RMB 6.7 million ($1.4 million) for the 1Q ended June, from RMB 8.0 million a year ago.
Revenue dipped marginally by 1% to RMB 153.2 million in 2Q18, from RMB 154.6 million a year ago.
The decrease was mainly attributable to lower services income due to a decrease in Macau operations as a result of weaker demand, as well as lower sales of components and accessories.
Gross profit fell 13.8% to RMB 44.6 million on the back of lower margin in 1Q18.
Average gross profit margin fell 4.4 percentage points to 29.1% in 1Q18, mainly attributable to lower margin from service income in Macau due to the absence of dismantling services.
In addition, compared to a year ago, the group saw lesser sales of large-sized tower cranes as well as sales of components and accessories, which generate higher gross margin.
As at end June, cash and cash equivalents stood at RMB 69.5 million.
Looking ahead, Yongmao says demand for tower cranes in other overseas markets is mixed, with markets such as Singapore, Taiwan and Middle East likely to see a better demand in the replacement market, while markets like Macau remain challenging.
Shares of Yongmao last closed at 63 cents on July 21.
