The Electrical and Mechanical Services Trading Fund saw a steady and satisfactory performance in 2002-03 despite challenges in the operating environment.
According to the fund's annual report for 2002-03 published today (October 15), it recorded revenue of $3.322 billion and 13.7% return on revenue.
Revenue was slightly down from the previous year, but still within budget. The decrease was due to a combination of factors such as price reductions, which the fund offered to customer departments to help them to do more with less.
The trading fund's General Manager and Director of Electrical and Mechanical Services, Mr Roger Lai Sze-hoi, said that despite a difficult operating environment and mounting competitive pressures, the fund's financial performance in 2002-03 was satisfactory and operations continued to improve.
Working closely with customer departments, the fund also helped weather the SARS storm and demonstrated reliability, professionalism and total commitment to customer departments and the community during the outbreak.
"I am proud that the trading fund remained true to its mission and values throughout this difficult period," said Mr Lai.
The fund also achieved full "untying" in August 2002, when all customer departments became free to use the Electrical and Mechanical service provider of their choice. The trading fund now operates in a fully open environment with local and international competition. This was a milestone for the fund, signifying that it had successfully completed its transition phase.
Mr Lai noted after achieving full "untying", the next challenge was to maintain a high-quality and sustainable operation in the current economic climate.
"This must be done by tighter cost control and productivity improvement, while maintaining a high level of service and excellence for all customers by the most effective deployment of its manpower resources," he said.
The successful rollout of integrated services in the past two years was a milestone development in this direction.
Mr Lai described the strategy as one of solidarity, where staff must embrace change and collaborate to deliver customer-focused solutions, in order to become closer partners with customers.
Mr Lai noted that after a phase of rapid growth in the past few years, it would be unrealistic to expect sustained rapid growth for the trading fund. He anticipated that the fund would be operating at minimal margins from 2003-04 onwards, barring unforeseen circumstances.
"The key would be to make ends meet, while achieving continuous improvement," he said.
The fund's services are provided via six business units that cover special areas of expertise. Many of the specialised areas are vital to the safety and well-being of the community.
These include airport and vehicle engineering services, health sector services, municipal sector services, project services, general engineering services, and transport, security and central services.
Ends/Wednesday, October 15, 2003