Analogue Records Profit Attributable to the Owners of the Company of HK$82.4 Million for First Half of 2024

- Total revenue increased by 14.9% to HK$3,265.4 million, with profit attributable to the owners of the company of HK$82.4 million
- Gross profit increased by 5.3% to HK$477.7 million, with a gross profit margin of 14.6%
- Contracts-in-hand remained at a high level of HK$11,704.3 million
- Interim dividend amounted to HK2.38 cents per share

HONG KONG, Aug 26, 2024 - (ACN Newswire) - Analogue Holdings Limited (“Analogue” or the “Company”, together with its subsidiaries, the “Group”) (stock code: 1977), a leading electrical and mechanical (“E&M”) engineering and technology service provider in Hong Kong, today announced its interim results for the six months ended 30 June 2024 (the “Period”), with revenue growth and steady performance despite navigating through various challenges.

The Group’s revenue for the Period was HK$3,265.4 million, representing an increase of 14.9%. This is mainly due to the effective execution of a variety of data centre, healthcare, building and infrastructure projects, including new projects which are scheduled to reach the threshold for profit recognition progressively and are expected to contribute to the future profit pipeline in phases, as well as the consolidation of revenue of two recently acquired lift companies in the United Kingdom (“UK”). Gross profit was HK$477.7 million and profit attributable to the owners of the Company was HK$82.4 million. The Group’s contracts-in-hand remained at a high level of HK$11,704.3 million, laying a solid foundation for future business. The Group maintained its active tendering activities throughout the Period, and submitted a total of 581 tenders or quotations valued at over HK$1 million each. In accordance with the tendering schedules, the award of many of the submitted tenders is due for announcement in phases later in the year. The Board has resolved to pay an interim dividend of HK2.38 cents per share.

Dr Mak Kin Wah, Chairman of Analogue Holdings Limited, said, “It is a great privilege for me to present the Interim Report for the first time as Chairman of the Company. During the Period, we continuously enhanced our core businesses as a market leader in the E&M engineering and technology services markets, advancing our diverse business portfolio which includes Building Services, Environmental Engineering, Information, Communications and Building Technologies (‘ICBT’), and Lifts and Escalator services. Not only have we continued to invest in research and development (‘R&D’) to develop innovative construction technologies to assure quality, safety and efficiency, and advanced digital, and green and environmental technologies to position us in the growth segments, meet customer needs and create value for the community, we have also broadened our Lifts and Escalators business to include the UK and the United States (‘US’) as well as explored opportunities in other new markets. The results of these efforts are maintaining our industry leadership, helping to navigate the challenges and capture the opportunities in the current business environment, and facilitating our ongoing growth.”

Revenue from the Building Services segment grew by 20.8% to HK$2,111 million during the Period, while its contracts-in-hand amounted to HK$5,585 million as at 30 June 2024. The recurring maintenance revenue stream was up by 11.3% to HK$205 million, and was further augmented by new maintenance contracts of HK$125 million secured from infrastructure operations, data centres and housing programmes during the Period. The Group has maintained its leadership in the building services sector, with a substantial market share and solid reputation among prestigious customers. With the recent achievement of significant new projects to provide E&M services, including a Grade A office building in Caroline Hill Road, Causeway Bay, with one of the highest levels of innovative Multi-trade Integrated Mechanical, Electrical and Plumbing (“MiMEP”) construction technologies for a commercial building, as well as a number of large-scale projects in Macau, the Group currently has large and sustainable contracts-in-hands. The Group will continue to invest in technologies such as Building Information Modelling (“BIM”) and MiMEP to enhance quality, safety, and productivity, including adding a new MiMEP facility in Mainland China to augment our established MiMEP facility in Hong Kong.

Revenue from the Environmental Engineering segment amounted to HK$621 million. As at 30 June 2024, the segment had contracts-in-hand of HK$4,514 million, including eight new contracts or significant variation orders, demonstrating the Group’s expertise in delivering quality project management services for varied environmental infrastructure. During the Period, the Group was awarded several notable projects, including barrage and nullah improvement works in Yuen Long and a new landfill leachate treatment plant in Nim Wan, Tuen Mun. In addition to technologies for climate solutions, clean water, and waste and sewage treatment including AI-enabled Digital Twin, the Group also adopted innovative approaches to the strengthening protection, and operation and maintenance of environmental infrastructure to extend its life cycle and ensure that it provides excellent service to Hong Kong. In overseas markets, the Group participated in tenders including water treatment works with a capacity of more than 250 million liters per day in Teresa and Pasig in the Philippines, and a sewerage project in Dubai.

ICBT recorded segment revenue of HK$295 million during the Period and had contracts-in-hand amounting to HK$938 million as at 30 June 2024. The Group’s cutting-edge CCTV systems with artificial intelligence (“AI”) video analytics have been adopted by the largest lifestyle shopping mall in the Southern District of Hong Kong Island to enhance security and optimise operations. Beyond the commercial sector, the Group has secured a contract to supply and install the Extra Low Voltage and Building Management Systems for a residential development project located in Tseung Kwun O, the largest residential development above the MTR station in the district. Well positioned for the opportunities arising from driving Hong Kong’s transformation into a “Smart City” and “Smart Economy”, the segment’s green and intelligent building solutions integrate a wide range of information and communications technologies, including AI-enabled Digital Twin, energy management technologies, renewable energy, ESG dashboards, Indoor Environment Quality Management, robotic solutions, and Smart Lampposts. Its solutions and services cover all industries and market segments in both the public and private sectors, including but not limited to data centres, healthcare, and infrastructure in Hong Kong.

Revenue from the Lifts and Escalators segment increased by 49.4% year-on-year to HK$239 million, with contracts-in-hand increasing by 13.8% to HK$667 million as at 30 June 2024. Anlev Elevator Group (“Anlev”), the Group’s global brand of lifts, escalators and moving walkways, serves millions of users in Asia, America and Europe. As part of the Group’s growth strategies, Anlev has been making progress expanding its business in the UK and the US. Its success in securing overseas projects in the UK has contributed to the segment’s high revenue. In Hong Kong, maintenance contracts for both commercial and government buildings were major profit contributors during the Period. While Anlev’s performance in terms of both safety and service quality is well recognised by customers, Anlev is building critical mass to enhance the efficiency of production and has been continuously developing its products to meet customer needs and stay ahead of the competition.

In July 2024, the Group unveiled the ATAL Tower, its new headquarters in Kwai Chung. Operation units from different offices are moving in by phases to be consolidated under one roof in this building, which will be fully operational by the third quarter of 2024. “This marks a new era and a significant milestone in the Group’s development. ATAL Tower boasts superior infrastructure that will enable us to better serve customers and partners while also providing a pleasant work environment to enhance our productivity and collaboration,” added Dr Mak.

The Group remains cautiously optimistic about the business outlook, given the strong contracts-in-hand, its leadership position in growth segments, and its strong tendering pipeline. Its continuous success in securing new business opportunities and winning contracts augers well for remaining competitive in the industry and growing its revenue, customer base and market reach. The Hong Kong SAR Government’s planned annual capital works expenditure of about HK$90 billion presents significant opportunities for the Group. Overall, the Group sees potential in healthcare, infrastructure, housing, data centres, smart technologies, advanced food waste treatment technology, and retrofitting of existing buildings to contribute to sustainable urban development. The Group’s investment in BIM, Modular Integrated Construction (MiC), MiMEP, robotic solutions and other advanced construction technologies will strengthen its competitiveness and allow it to capture emerging business opportunities. The Group has healthy liquidity, low debt levels and strong recurring operating cash flows, which assures its financial flexibility to take on new projects in its tendering pipeline as well as to capture the opportunities arising in the current market condition, to optimise the long-term future of the business. The Group will continue to explore suitable synergistic business opportunities, including expansion into East Asia, Southeast Asia, the Middle East and other areas.

Dr Mak concluded, “What Analogue has achieved would not have been possible without our dedicated and capable staff. Attracting and retaining talents remains one of our top priorities. We are committed to providing our employees with comprehensive training to support their development, and to cultivating a corporate culture that values professionalism and craftsmanship. As a market leader, we take pride in being able to provide a comprehensive suite of quality services, not only for the benefit of our customers, employees and shareholders, but also to contribute to the betterment of society in Hong Kong and around the world.”

For further details of the 2024 Interim Results, please refer to the announcement filed with The Stock Exchange of Hong Kong Limited.

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About Analogue Holdings Limited

Established in 1977, Analogue Holdings Limited is a leading electrical and mechanical (“E&M”) engineering and technology service provider, with headquarters in Hong Kong and operations in Macau, Mainland China, the United States and the United Kingdom. Serving a wide spectrum of customers from public and private sectors, the Group provides multi-disciplinary and comprehensive E&M engineering and technology services in four major segments, including Building Services, Environmental Engineering, Information, Communications and Building Technologies (“ICBT”) and Lifts & Escalators.

The Group also manufactures and sells Anlev lifts and escalators internationally and has entered into an alliance with Transel Elevator & Electric Inc. (“TEI”), one of the largest independent lifts and escalators companies in New York, the United States. The Group’s associate partner, Nanjing Canatal Data Centre Environmental Tech Company Limited (603912.SS), specialises in manufacturing of precision air conditioners.