Hong Kong, March 21, 2025 (GLOBE NEWSWIRE) -- Ming Shing Group Holdings Limited (“MSW” or the “Company”) (Nasdaq: MSW) is an exempted company with limited liability incorporated under the laws of the Cayman Islands with no material operations of its own. The Company, through its indirectly wholly-owned operating subsidiaries, MS (HK) Engineering Limited and MS Engineering Co., Limited, is engaged in wet trades works services in Hong Kong. The Company today announced its unaudited financial results for the six months ended September 30, 2024.
First Half of 2024 Financial and Operating Highlights
●
Total revenue increased by 31.8% from US$13,211,196 to US$17,408,116
●
Gross profit increased by 23.7% from US$1,939,597 to US$2,398,855
●
Net income and total comprehensive income decreased by 2.7% from US$1,011,897 to US$984,549
Mr. Chi Ming Lam, Chief Executive Officer of the Company, commented, “In our operating history of approximately ten years, we have focused on providing wet trades work services in the role of a subcontractor. We take pride in our portfolio in wet trades works. In the six months ended September 30, 2024 we continue to provide quality wet trades works to our customers and expand our business. Leveraging our established track record, our expertise in wet trades operations and our experienced management team, we believe we are well-positioned to capture the growth of the wet trades works market in Hong Kong and expand our business.”
“We are also proud to announce that the Company has listed its shares on the Nasdaq Capital Market on November 22, 2024 and the shares of the Company are now trading on the Nasdaq under ticker “MSW.” We believe the listing on Nasdaq is an important milestone for the Company. We will actively explore options for the Company to grow further and create value for our shareholders” concluded Mr. Lam.
FINANCIAL RESULTS
Revenue
Revenue increased by 31.8% from US$13,211,196 for the six months ended September 30, 2023 to US$17,408,116 for the six months ended September 30, 2024. The increase was primarily due to the increase in number of projects awarded.
Cost of revenue
Cost of revenue increased by 33.2% from US$11,271,599 for the six months ended September 30, 2023 to US$15,009,261 for the six months ended September 30, 2024. The increase was generally in line with the increase in revenue.
Gross profit and gross profit margin
The gross profit increased by 23.7% from US$1,939,597 for the six months ended September 30, 2023 to US$2,398,855 for the six months ended September 30, 2024. The increase was due to the increase of revenue. The gross profit margin decreased by 0.9% from 14.7% for the six months ended September 30, 2023 to 13.8% for the six months ended September 30, 2024. The decrease was mainly due to the increase in direct costs incurred from additional subcontracting costs incurred to deal with changes to the on-site arrangements for certain construction projects and the delays in certain projects.
Net income and total comprehensive income
Net income and total comprehensive income decreased by 2.7% from US$1,011,897 for the six months ended September 30, 2023 to US$984,549 for the six months ended September 30, 2024. The decrease was mainly due to increase in interests in interests of bank and other borrowings.
About Ming Shing Group Holdings Limited
Ming Shing Group Holdings Limited is a Hong Kong-based company mainly engaged in wet trades works, such as plastering works, tile laying works, brick laying works, floor screeding works and marble works. With a mission to become the leading wet trades works services provider in Hong Kong and the United States, the Company strives to provide quality services that comply with its customers’ quality standards, requirements, and specifications. The Company conducts its business through its two wholly-owned Hong Kong operating subsidiaries, MS (HK) Engineering Limited and MS Engineering Co. Limited. MS (HK) Engineering Limited is a registered subcontractor and a registered specialist trade contractor under the Registered Specialist Trade Contractors Scheme of the Construction Industry Council and undertakes both private and public sector projects, while MS Engineering Co., Limited mainly focuses on private sector projects. For more information, please visit the Company’s website: https://ir.ms100.com.hk.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as “aim”, “anticipate”, “believe”, “estimate”, “expect”, “going forward”, “intend”, “may”, “plan”, “potential”, “predict”, “propose”, “seek”, “should”, “will”, “would” or other similar expressions in this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.
Ming Shing Group Holdings Limited and its subsidiaries Unaudited Interim Condensed Consolidated Balance Sheets
September 30,
March 31,
2024
2024
US$
US$
Assets
Current assets
Cash and cash equivalents
1,257,540
1,080,514
Accounts receivable, net
1,755,696
1,643,568
Contract assets
6,207,838
6,098,497
Due from a related party
-
-
Deposits, prepayments and other current assets
58,966
20,925
Total current assets
9,280,040
8,843,504
Non-current assets
Property and equipment, net
1,181,558
1,223,100
Right-of-use assets – finance lease
186,347
216,065
Life insurance policy, cash surrender value
165,744
160,891
Contract assets
495,195
740,600
Deferred costs
1,022,286
704,568
Deferred tax assets
58,100
150
Total non-current assets
3,109,230
3,045,374
Total assets
12,389,270
11,888,878
Current liabilities
Accounts payable
2,841,878
3,166,177
Bank and other borrowings
5,047,454
3,818,453
Finance lease liabilities
68,811
67,372
Accrued expenses and other current liabilities
10,000
136,791
Income tax payable
577,631
552,670
Total current liabilities
8,545,774
7,741,463
Non-current liabilities
Bank borrowings
2,889,630
3,033,780
Finance lease liabilities
79,747
114,495
Deferred tax liabilities
-
878
Total non-current liabilities
2,969,377
3,149,153
Total liabilities
11,515,151
10,890,616
Shareholders’ equity
Ordinary shares, 100,000,000 shares authorized; USD0.0005 par value, 11,250,000 and 11,250,000 shares issued and outstanding, as of September 30, 2024 and March 31, 2024, respectively
5,625
5,625
Subscription receivable
(5,625
)
(5,625
)
Additional paid in capital
1,282
1,282
Retained earnings
872,837
996,980
Total shareholders’ equity
874,119
998,262
Total liabilities and shareholders’ equity
12,389,270
11,888,878
Ming Shing Group Holdings Limited and its subsidiaries Unaudited Interim Condensed Consolidated Statements of Operations and Comprehensive Income
For the six months ended September 30,
2024
2023
US$
US$
(unaudited)
(unaudited)
Revenue
17,408,116
13,211,196
Cost of revenue
(15,009,261
)
(11,271,599
)
Gross profit
2,398,855
1,939,597
Operating expenses
General and administrative expenses
(995,737
)
(556,546
)
Total operating expenses
(995,737
)
(556,546
)
Income from operations
1,403,118
1,383,051
Other (expense) income
Interest expense, net
(221,609
)
(133,888
)
Other income
398
9,010
Total other (expense) income, net
(221,211
)
(124,878
)
Income before tax expense
1,181,907
1, 258,173
Income tax expense
(197,358
)
(246,276
)
Net income and total comprehensive income
984,549
1,011,897
Net income per share attributable to ordinary shareholders
Basic and diluted
0.09
0.09
Weighted average number of ordinary shares used in computing net income per share
Basic and diluted
11,250,000
11,250,000
Ming Shing Group Holdings Limited and its subsidiaries Unaudited Interim Condensed Consolidated Statements of Changes in Shareholders’ Equity
Ordinary Shares
Additional
Total
Number of shares
Amount
Subscription receivable
paid in capital
Retained Earnings
Shareholders’ Equity
US$
US$
US$
US$
US$
Balance as of April 1, 2023
11,250,000
5,625
(5,625
)
1,282
381,608
382,890
Net profit for the period (unaudited)
-
-
-
-
1,011,897
1,011,897
Dividend declared (unaudited)
-
-
-
-
(1,116,737
)
(1,116,737
)
Balance as of September 30, 2023 (unaudited)
11,250,000
5,625
(5,625
)
1,282
276,768
278,050
Ordinary Shares
Additional
Total
Number of shares
Amount
Subscription receivable
paid in capital
Retained Earnings
Shareholders’ Equity
US$
US$
US$
US$
US$
Balance as of April 1, 2024
11,250,000
5,625
(5,625
)
1,282
996,980
998,262
Net profit for the period (unaudited)
-
-
-
-
984,549
984,549
Dividend declared (unaudited)
-
-
-
-
(1,108,692
)
(1,108,692
)
Balance as of September 30, 2024 (unaudited)
11,250,000
5,625
(5,625
)
1,282
872,837
874,119
Ming Shing Group Holdings Limited and its subsidiaries Unaudited Interim Condensed Consolidated Statements of Cash Flows
For the six months ended September 30,
2024
2023
US$
US$
(unaudited)
(unaudited)
Operating activities:
Net income
984,549
1,011,897
Adjustments:
Depreciation on equipment
41,543
5,331
Amortization of right-of-use assets – finance lease
29,718
45,472
Gain on disposals of right-of-use assets – finance lease
-
(3,686
)
Changes on cash value of life insurance policy
(4,853
)
(3,172
)
Expected credit loss allowance
321,548
10,623
Deferred Income taxes (benefits) provision
(58,828
)
6,799
Change in working capital items:
Change in accounts receivable
(244,954
)
(914,484
)
Change in contract assets
(52,659
)
1,243,338
Change in deposits, prepayments and other current assets
(38,041
)
1,862
Change in accounts payable
(324,299
)
(24,913
)
Change in income tax payable
24,960
159,774
Change in accrued expenses and other current liabilities
(126,791
)
(63,330
)
Cash provided by operating activities
551,893
1,475,511
Investing activities:
Purchase of equipment
-
(85,723
)
Deposit paid for acquisition of a property
-
(148,000
)
Sales proceeds from disposals of leased equipment
-
51,282
Cash used in investing activities
-
(182,441
)
Financing activities:
Proceeds from new bank borrowings
5,525,641
12,522,346
Repayment of bank borrowings
(4,440,790
)
(12,316,028
)
Principal payments for finance lease liabilities
(33,308
)
(86,809
)
Advances to related parties
(1,108,692
)
(1,038,382
)
Payment of deferred IPO costs
(317,718
)
(280,279
)
Cash used in financing activities
(374,867
)
(1,199,152
)
Net change in cash and cash equivalents
177,026
93,918
Cash and cash equivalents as of beginning of the period
1,080,514
323,958
Cash and cash equivalents as of the end of the period
