SINGAPORE (May 29): Tower crane manufacturer Yongmao Holdings has posted a seven-fold increase in earnings to RMB 28.1 million ($5.7 million) for the full year ended March, from RMB 3.9 million a year ago.
Full-year revenue grew 26.3% to RMB 574.5 million, from RMB 455.0 million a year ago.
Revenue from sales in China more than doubled to RMB 283.3 million, mainly due to increased demand for large sized tower cranes used for infrastructure projects, as well as higher rental and service income.
In the rest of Asia, sales increased by RMB 13.3 million from improved sales in Taiwan market and higher rental and service income from Hong Kong operations, partially offset by lower sales in Singapore and Malaysia.
In the Middle East, US and Europe, revenue fell to RMB 69.5 million in FY2017, from RMB 113.9 million a year ago.
Other income fell to RMB 4.6 million, from RMB 7.9 million a year ago, due to lower interest income.
Total operating expenses increased 11.2% to RMB 160.8 million in FY2017, from RMB 144.6 million a year ago.
Cash and cash equivalents stood at RMB 53.9 million as at March 31, 2017.
Despite recent residential property tightening measures in China, the group says investment momentum is likely to stay stronger in coming months amid heavy infrastructure investment.
“Demand for tower cranes in other overseas markets is mixed with markets such as Singapore, Taiwan and Australia likely to see a better demand in the replacement market whereas markets like Macau remain challenging,” it adds.
Shares of Yongmao last closed at 69 cents on April 6, 2017.
