Analogue Records Net Profit of HK$251.5 Million in FY2023

HONG KONG, Mar 25, 2024 – (ACN Newswire via – 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 annual results for the year ended 31 December 2023 (“the Year” or “FY2023”), with net profit more than doubling despite the impact of a variety of challenges.


— Total revenue amounted to HK$6,132.9 million

— Profit attributable to owners of the Company increased to HK$251.5 million, a year-on-year growth of 119.5%

— Contracts-in-hand remained at a high level of HK$11,459.6 million

— Annual dividend amounted to HK9.52 cents per share

The Group’s revenue for the Year was HK$6,132.9 million and gross profit was HK$833.3 million. Profit attributable to owners of the Company was HK$251.5 million, representing a year-on-year increase of 119.5%. The Group’s contracts-in-hand remained at a high level of HK$11,459.6 million, providing a solid foundation for the business going forward. The Group has also been proactive in its tendering activities, with a total of 1,079 tenders or quotations each valued at over HK$1 million during the Year.

The Board has resolved to pay a second interim dividend of HK1 cent per share for the Year. Together with the first interim dividend of HK8.52 cents per share, the total dividend for the Year amounted to HK9.52 cents per share.

Dr Otto Poon Lok-to, Founder of Analogue Holdings Limited, said, “Over the past year, we have witnessed the complexity of our times, with economic, geopolitical, and environmental concerns. As for Hong Kong’s construction industry, it has been facing stiff headwinds created in part by imbalances that have led to manpower, quality, efficiency and safety issues, among others. Such issues have resulted in delays, disputes and construction costs that are among the highest in developed economies. Nevertheless, in our commitment to be the preferred E&M engineering and technology service provider, we are addressing these imbalances pragmatically and dynamically, supported by our development strategy comprising the three pillars of ‘New Technology’, ‘New Market’, and ‘New Business Model’. With Dr Mak Kin Wah assuming the position of Chairman of the Board, I believe the Group will set sail for new horizons under his leadership.”

Contracts-in-hand in the Building Services segment increased by 6.9% to HK$5,815 million as at 31 December 2023. The segment generated revenue of HK$3,736 million during the Year. The recurring revenue was strengthened with new maintenance contracts of HK$600 million secured during the Year. With a focus on innovation and sustainability, the Group won a major Mechanical, Electrical and Plumbing (“MEP”) package contract of a prime commercial project in Causeway Bay with its innovative commercial building solutions, demonstrating its outstanding expertise in Building Information Modelling (“BIM”) and Multi-trade Integrated Mechanical, Electrical and Plumbing (“MiMEP”). Quality, safety, cost and project management have been improved through the adoption of ATAL Building Services Prefabrication and Modularisation (“ABSPM”) construction technology and digitalisation. The Group’s data centre project team secured and commenced a number of large-scale data centre projects, including one of its largest Management, Operation and Maintenance (“MOM”) service contracts for a government data centre.

Revenue of the Environmental Engineering segment grew by 9.9% to HK$1,356 million year-on-year, with contracts-in-hand amounting to HK$4,165 million as at 31 December 2023. During the Year, the Group won seven major new contracts or significant variation orders, underscoring its expertise in quality water, wastewater, and solid waste infrastructure project management services. It also introduced innovative models for the reinforcement, protection, and operation and maintenance (“O&M”) of wastewater treatment plants to extend their lifespan and ensure they provide optimal service to Hong Kong. In particular, the major operation and maintenance project for electrical and mechanical works at the water recycling and solid waste management facility in Shatin commenced in November 2023. Beyond Hong Kong, the Group’s first project in Nepal is scheduled for completion in the third quarter of 2024, with testing and commissioning scheduled to begin in 2024. Other tendering and quotation activities outside Hong Kong and Mainland China included water and wastewater treatment projects in Batangas and Pasig in the Philippines, and wastewater treatment plants in Sallaghari, Kodku and Dhobighat in Nepal.

Information, Communications and Building Technologies (“ICBT”) segment had contracts-in-hand amounting to HK$843 million as at 31 December 2023, with revenue up by 5.1% year-on-year to HK$663 million. Committed to driving Hong Kong’s transformation into a “Smart City” and “Smart Economy”, the green and intelligent building solutions offered by the ICBT segment integrate a wide range of information and communications technologies, including AI-enabled Digital Twin, energy management technologies, ESG dashboards, Indoor Environment Quality (“IEQ”) Management, robotic solutions, and Smart Lampposts. The Group’s cutting-edge technologies continued to make waves in Hong Kong’s prestigious buildings in prime business districts. Its integrated Building Management System (“BMS”), Internet of Things (“IoT”), Extra Low Voltage (“ELV”) and Information and Communications Technology (“ICT”) systems have been adopted in a world-class smart office and commercial building currently under construction in Causeway Bay. In addition, the Group secured its second IoT-based smart hostel solution at one of Hong Kong’s universities, solidifying its position as a leading provider of smart solutions in the education sector. The Group’s BMS and energy optimisation solution was also selected for two prestigious commercial buildings above West Kowloon Station, as well as two commercial buildings and a laboratory focused on innovation and technology in the Lok Ma Chau Loop area.

Revenue from the Lifts and Escalators segment increased by 7.2% year-on-year to HK$378 million, with contracts-in-hand amounting to HK$637 million as at 31 December 2023. Maintenance contracts for both commercial and government buildings were major profit contributors during the Year. The Group’s renowned Anlev brand serves millions of users in Asia, the Americas and Europe through its lifts, escalators and moving walkways, while its Hong Kong arm is one of the leading lift and escalator contractors in the region. Strategic orders secured by Anlev in 2023 included a wide range of mixed-use residential buildings in Canada, public transportation in Mexico, private housing in Singapore, prestigious government offices in Hong Kong, and orders in Mainland China. In the United States (the “US”), the Group has widened its focus through Transel Elevator & Electric Inc. (“TEI”) in commercial properties to include residential market, and has expanded operations to the Southern States of the US, because in this area the property development is showing a greater growth. In the United Kingdom (the “UK”), the Group’s wholly-owned subsidiary Anlev (UK) Limited finalised order for the iconic and prestigious projects in Manchester, Birmingham and London. To expand its global network and further its strategy, Anlev has recently completed two acquisitions – JCW Lifts Ltd (“JCW”) and Precision Lift Services Limited (“Precision”) – both successful lift businesses in the UK. It will also seek new distributors in the US, Europe, the Middle East and Southeast Asia.

“Having established footholds in the US and the UK, followed by our acquisition of two lift companies in the UK in the Year, we are able to provide comprehensive one-stop lift and escalator services and fortify our position in Europe. In achieving the latter and bolstering our presence in the US, we will seek to offer our Group’s full range of E&M engineering and technology services in these markets incrementally to broaden our income streams and expand our footprint,” added Dr Poon.

Driven by high market demand and growth opportunities in various market segments, as reflected in its strong tender activity throughout 2023, the Group is positive about its business outlook. Its continued success in securing new business opportunities and winning contract tenders provides a good foundation for the Group to remain competitive in the industry and expand its revenue, customer base and market reach. In preparation for the future and further business growth and development, operating units have been re-organised. The Group will continue to explore potential synergistic business opportunities and equity partnerships, including expansion into East Asia, Southeast Asia, and the Middle East.

Dr Mak Kin Wah, Chairman of Analogue Holdings Limited, said, “I would like to express our gratitude for the contributions that Dr Poon has made and will continue to make. With my new position as Chairman of the Group, I will continue to contribute my leadership to the Group’s strategy, operations and governance to take the Group to new heights. Our Group has a solid foundation for future business, with a large number of contracts-in-hand, active tendering, and ample opportunities in the market, with Hong Kong alone offering HK$300 billion per annum of construction business opportunities. Our priority is to carefully safeguard our core business to capitalise on these opportunities and our broad portfolio of construction and O&M business. We will invest in the continuous enhancement of our leadership in MIC, MiMEP, IoT, energy and selected areas of technology. With an established presence in the UK and US, we aim to integrate these operations to take advantage of global market opportunities.”

For further details of the 2023 Annual Results, please refer to the announcement filed with The Stock Exchange of Hong Kong Limited.

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.

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