Local firm sees investment growth from collaborating with Sands China Ltd

Sands China Ltd has been boosting its efforts in supporting local small, medium and micro suppliers, with the aim of boosting local firms’ sales revenues and quality standards.

Hang Fong Hong (Macau) Ltd was established in the SAR in 1989, initially supplying drinks and beer. Upon the liberalization of the gaming industry in Macau, they became aware that more international hotels would come to Macau and that there was great potential for F&B demand.

Therefore, in 2011, the local firm established Hang Fong Hong Food Factory Ltd. and commenced supplying bakery products and pastries to the gaming operator’s team-member dining rooms.

Lei Io Chio, the general manager of the company, recalled that the firm first approached the gaming operator in 2011.

The general manager said that Sands China’s support to local SMEs and to his firm had enhanced their ability to expand because the gaming operator has been a reliable and consistent purchaser. To meet and improve quality standards, the company has obtained ISO 22000 and HACCP certifications.

Since its collaboration with Sands China, Hang Fong Hong Food Ltd’s business has grown from MOP12 million to MOP26 million annually.

“Sands China has given us a lot of support. The gaming operator contributes 30% to the company’s total sales revenue. They have given us a stability of orders, which also allowed us to invest and buy heavy-duty equipment,” said Lei.

“To meet Sands China’s expanding business needs, from [our] establishment to now, we have invested more than MOP20 million in equipment. In the middle of 2018, we were able to purchase an automatic segmentation molding machine from Germany directly, which was valued at around MOP4 million,” he added.

The firm was also able to increase its staff from 20 people to over 100, while its delivery trucks increased from three to 12.

Currently, the company serves and delivers to some 300 clients, including integrated resorts, schools and Food & Beverage stores.

Hang Fong Hong (Macau) Ltd was also recognized by Sands China as an exceptional supplier at its annual Sands Supplier Excellence Awards, a global initiative of Sands China’s parent company, Las Vegas Sands Corp.

The award was given as the company promptly responded to the needs of the gaming operator when Typhoon Hato hit Macau back in 2017.

The local firm ordered 154 tonnes of drinking water to be delivered to the integrated resorts of the gaming operator.

“There was a severe lack of water in the city during that critical time. Even our food factory did not have water supply. So, we worked together and arranged 154 tonnes of drinking water from China to supply Sands China for the guests who remained on property and the staff on-duty,” Lei explained.

“I believe that such an awards program gives us motivation to further improve our products and services,” he added.

Sands China considers its suppliers essential to the gaming operator’s business. It also aims to create a partnership of mutual success, thus it continues to offer a wide range of complimentary programs to disseminate business knowledge to these SMEs, and made-in-Macau companies.

Hang Fong Hong Food Ltd took part in the Sands Procurement Academy, an academy that shares business knowledge and skills to further the development of local SME suppliers. They are now applying business techniques that were demonstrated during the program.

The aim of the program is to help local firms gain experience and capacity to work with large-scale international corporations like Sands China. The academy specifically targets four categories of local SME suppliers: small- and medium-sized enterprises (SMEs), micro-enterprises, Macau young entrepreneurs, and “Made-in-Macao” enterprises.

“We really have to thank Sands China for trusting us and for the support [given] to our company. We have attended almost every training course because we gain a lot of skills from warehouse operations, quality assurance, and logistics management to the procurement process,” said Lei. 

“I appreciate the partnership with Sands China because we receive a stable volume of orders and when we have that, other companies also become confident to invest in our company over the long-term,” he added.

The gaming operator considers the Sands Procurement Academy to be an important way for the company to offer its resources for the benefit of the wider community.

Sands China’s Local Supplier Support Programme is in line with the Macau government’s initiative to “buy local.” It is part of Sands China’s supplier relationship management strategy, which guides the company’s long-standing effort to support local suppliers, whom it views as its strategic partners.