SINGAPORE (May 26): Engineering firm Sapphire Corporation has won two engineering contracts in Urumqi, and also lease out a tunnel boring machine, thereby adding RMB235.9 million to its order book.
With these newly-announced contracts, Sapphire’s order book has grown to RMB1.5 billion.
The larger of the two contracts, worth some RMB203 million, is to build a 1.73-km-long underground subway section from Urumqi’s airport. It is due for completion by end of 2022.
The smaller contract, worth some RMB20.5 million, is for an upgrading contract within one of Urumqi’s Midong District.
Separately, Sapphire has leased out its tunnel boring machine for use to build a segment of the Shenzhen Metro Line 14.
“Our tunnel boring capabilities and shield tunnelling technology have enabled the Group to successfully complete various complex subway projects in China,” says CEO Wang Heng (picture).
“The leasing of our tunnel boring machine and the provision of our technical expertise and training underscores our strengths in this niche engineering area,” she adds.
The company wasn’t spared from the stop work orders in an effort to curb the spread of the Covid-19 virus earlier this year in China.
On May 22, the company reported losses of RMB14.5 million for 1QFY20 ended March, a reversal from earnings of RMB3.4 million in the year-earlier quarter. Revenue in the same period was down 34.1% y-o-y to RMB101.4 million.
As of March 11, work has started resuming progressively and as of May 22, all of Sapphire’s operations have resumed.
The company is “cautiously optimistic” that it can return back to the black for this current quarter.
Year to date, Sapphire shares have dropped 30% to close at 4.2 cents on May 26.
