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CSCI Announced its 2017 Annual Results

2018-03-16
(16 March 2018) China State Construction International Holdings Limited (“CSCI” or “The Group”, Stock Code: 03311) announced its 2017 annual results today. For the year ended 31 December 2017, the Group’s audited profit attributable to the owners of the Group was HK$5490 million, representing an increase of 7.0% as compared to last year. Profit from core business amounted to HK$5070 million, representing a year-on-year increase of 22.1%. The revenue was HK$50.15 billion, representing an increase of 8.5% as compared with the same period of last year. The gross profit margin is 15.2%, representing a year-on-year increase of 17.8 percentage points. With a proposed final dividend per share of HK20 cents, an interim dividend per share of HK15 cents per share paid in the year, the total dividends for the year amount to HK35 cents per share.


In 2017, global economic growth gained pace with the benefit of a broader foundation, evidenced by steady recovery in the investment, manufacturing and trade sectors. The U.S. economy continued to expand, as the Federal Reserve increased its interest rate three times during the year, while planning for a gradual downsizing of its balance sheet and commencing a new round of tax reforms towards the end of the year. In Europe, improvements in the economy were reported despite numerous obstacles on the political front. Meanwhile, China’s macro-economic growth beat expectations in the context of five key policies of supply-side structural reforms, in a further manifestation of the strong resilience and vigour of the nation’s economy. The Group’s operating principles for the year have called for “determination to overcome challenges, quality and efficiency enhancement, synergy and innovation, and meticulous brand-building”. We overcame difficulties and moved forward with assured confidence amidst complex market conditions, as we sought business transformation and upgrade as well as enhancement in scale and efficiency on the back of stronger synergistic collaborations within the Group and with external parties, while highlighting the spirit of craftsmanship to scale new heights in brand quality.


For 2018, while the global economy is expected to sustain recovery on all fronts, potential downside risks, such as geopolitical tensions, emerging trade protectionism and global financial austerity, will persist. With tax reforms coinciding with the rate hike cycle in the United States, the US Dollar might turn stronger in the short to medium term, creating a spillover effect in favour of world economies and financial markets. In the longer term, the US Dollar will be driven back to the U.S. market, to the benefit of its investment and construction sectors. The Chinese economy will continue to enjoy stable growth and emerge as an important engine for global economic growth. The nation’s macro-economic policy will be dominated by deleveraging and risk aversion concerns. The Group will monitor closely trends and developments in the macro-economy and sector markets, taking heed to enhance its sensitivity and perception of market developments so that it could formulate forward-looking business strategies in proactive response to changes in external business conditions.


In connection with its Hong Kong and Macau operations, the Group will seek to improve its success rate in project bidding by adopting flexible bidding strategies in response to market changes on the back of its inherent as well as external advantages and resources, in a bid to cement its position as the largest contractor in Hong Kong and Macau. [China State Construction Engineering (Hong Kong) Limited] will be actively involved in the bidding for large-scale public works. Meanwhile, focused efforts will be made to track Mainland Chinese property developers investing in Hong Kong. We will procure a pragmatic and efficient management team and optimise the work flow of investment management, while introducing the new business model of “investment-driven contracting” to enable bidding for small- and medium-scale works where appropriate, so as to further cement our market shares. [China Construction Engineering (Macau) Company Limited] will be actively involved in bidding for government as well as private projects, with a strong focus on winning tenders for premium projects to ensure stable growth for its contracting business. For our investment business in Mainland China, we will adopt a business strategy emphasising both aggressive marketing and the quality of project works in close tandem with the directions indicated in national policies. PPP projects will be undertaken on a highly selective basis and facilitated through innovative investment and financing models. Proactive moves will be made to address escalating market competition, such as stronger efforts to nurture partnerships, exhaustive search to identify investment opportunities in various provinces and regions, and initiatives to nurture and develop the import of industries. We will develop our own expertise in industrial research, industrial planning and the design of industrial parks, with a view to enhancing our competitive strengths for differentiation in a homogenised market, so that we could secure a greater number of premium projects. Project management will be strengthened with solid actions in refining details, while constructive measures will be proactively adopted to ensure the smooth implementation and delivery of showcase projects that will enhance our reputation.


Far East Global (“FEG”, 830.HK) will be focused on the development of a global industry chain on the back of its inherent strengths as an international operation, as it strives to become a leading provider of one-stop solutions for high-end curtain wall. In North America, a strong emphasis will be placed on the development of new investment businesses, on top of the expansion of its traditional curtain wall business. In the Australian market, it will be focused on the design and supply markets while enhancing process control, with a view to the steady increase in market shares. Moreover, FEG will actively investigate innovations in its business model and strengthen the collaborative use of internal resources to drive business transformation and upgrade.


Project List

Central-WanChai Bypass-Tunnel (Causeway Bay Typhoon Shelter Section)
Central-WanChai Bypass-Tunnel (Causeway Bay Typhoon Shelter Section)

HongKong-Zhuhai-Macao Bridge Hong Kong Link Road
HongKong-Zhuhai-Macao Bridge Hong Kong Link Road

Chek Lap Kok - Passenger Terminal Building
Chek Lap Kok - Passenger Terminal Building

Details Design & Construction of Sheng Shui Slaughterhouse
Details Design & Construction of Sheng Shui Slaughterhouse

Construction of UC Hong Kong Centeral Library at Causeway Hong Kong
Construction of UC Hong Kong Centeral Library at Causeway Hong Kong