SINGAPORE (Nov 14): Yongmao reported a 13.5% rise in 2Q18 earnings to RMB15.9 million ($3.3 million) from $14 million a year ago.
Yongmao says this was mainly due to net loss attributable to non-controlling interests of RMB1.1 million in 2Q18 as compared to a profit attributable to non-controlling interest of RMB1.9 million in 2Q17.
Revenue fell 6.2% to $173.1 million from $184.5 million a year ago, mainly from lower services income of RMB6.8 million in Hong Kong and Macau operations as a result of weaker demand, lower sales in towercranes of RMB5.7 million and lower sales of components and accessories of RMB1.1 million.
Geographically, sales in China decreased 20.9% from RMB105.5 million in 2Q17 to RMB83.5 million in 2Q18 but this was offset by the increase in Middle East & others and USA & Europe which grew by RMB11.4 million and RMB1.6 million respectively due to higher demand of towercranes especially in Finland and Israel.
Nevertheless, sales in China still made the largest turnover contribution to the group, amounting to 48.2% of revenue in 2Q18 as compared to 57.2% of revenue in 2Q17.
Gross profit decreased 10.8% to RMB59 million in 2Q18 from a year ago mainly due to lower revenue and lower margin.
Average gross profit margin decreased to 34.1% in 2Q18 from 35.8% in 2Q17 mainly attributable to lesser sales of luffing series towercranes which generates higher gross margin.
Other income decreased to RMB1.2 million in 2Q18 compared to RMB2.1 million in 2Q17 mainly due to compensation income from customers of RMB1.6 million.
Total operating expenses decreased 13.0% to RMB40.9 million in 2Q18, distribution costs decreased 11.5% to RMB13.3 million, administrative expenses decreased 13.4% to RMB19.4 million while other operating expenses decreased to RMB3.7 million.
In its outlook, Yongmao says demand for towercranes 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 whereas markets like Macau remain challenging.
Shares in Yongmao closed 1 cent higher at 63 cents on Tuesday.
