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Steep profit dive hits firms

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Turnover at two SAR-listed construction companies - Wai Kee Holdings and Hsin Chong Construction Group - plunged 60.9 per cent and 23 per cent respectively in the half to September 30.

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However, Wai Kee managed to post a net profit gain, while Hsin Chong saw its losses widen.

During the six-month period, revenues at Wai Kee were down to HK$700.44 million from HK$1.78 billion.

The large drop was due partly to the substantial completion of major civil construction contracts, and as a result profit from its construction division was cut by about half to HK$16 million from HK$31 million a year ago.

Despite the drop in sales, Wai Kee recorded a 61.5 per cent rise in net profit to HK$63.38 million, bolstered by the contribution from Road King Infrastructure, a 49.08 per cent-owned subsidiary.

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Road King, which operates toll roads in the mainland, recorded an unaudited profit after tax of about HK$237 million in the nine months to September 30. It contributed about HK$58 million to the parent during the period.

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