12 Nov 2015
Everbright Water announces 3QFY2015 results
|HKD' Million||HKD' Million|
|Net Profit Attributable to Shareholders of the Company||88.8||70.9||+25%|
|Earnings Per Share* (HKD)||0.034||0.037||-8.1%|
Singapore, 12 November 2015 – China Everbright Water Limited ("Everbright Water" or the "Company", SGX: U9E) (中国光大水务有限公司), an environmental protection company focuses on investment, operation and management of integrated environmental water business, announced the unaudited results for its third quarter ended 30 September 2015 ("3QFY2015" or the "period under review").
During the period under review, the Company's revenue increased 63% year-on-year ("yoy") to HKD410.2 million mainly due to the contribution from the expansion and upgrading of several waste water treatment projects, as well as higher operating income and finance income. Gross profit grew 47% yoy to HKD191.1 million, while gross profit margin was 47% for 3QFY2015 (3QFY2014: 52%), which was mainly due to construction revenue comprised approximately 30% of the total revenue of 3QFY2015 (there was no construction revenue in 3QFY2014). In general, construction activities have lower profit margin as compared to operation activities. Net profit attributable to shareholders of the Company increased 25% yoy to HKD88.8 million.
Regarding business expansion, during 3QFY2015, the Company has secured Shandong Ji'nan Waste Water Treatment Project (Plant 1) Expansion Project. The total investment for the project is approximately RMB115 million, with daily waste water treatment capacity of 50,000 m3. The water discharge will comply with the National Grade 1A standard.
Besides, the Company has entered into an equity transfer agreement with Dongda Group Co., Ltd. and an independent third party to acquire Dalian Dongda Water Co., Ltd.'s ("Dalian Dongda") equity in stages. Dalian Dongda has 17 municipal waste water treatment projects with a total contract daily treatment capacity of 1.125 million m3 in Liaoning Province and Inner Mongolia Autonomous Region. On 4 November 2015, the Company announced that it had successfully acquired equity interest in Dalian Dongda, which has become a subsidiary of the Company.
On the project construction during the period under review, the expansion and upgrading of Binzhou Boxing Waste Water Treatment Project was completed and the project has secured a tariff raise of 17.3%. Zibo Reusable Water Project Phase II was completed in September 2015. In addition, construction of Nanjing Pukou Waste Water Treatment Project Phase II was completed and the plant is currently in the commissioning phase. Projects under construction include Suzhou Wuzhong Chengnan Waste Water Treatment Project Phase II and its upgrading as well as Ji'nan Waste Water Treatment (Plant 1) Expansion Project.
Mr Wang Tianyi, Executive Director and Chairman of Everbright Water, said, "The Company made a grand debut in Singapore's capital market through a reverse takeover at the end of last year. 2015 is a year during which Everbright Water ushers in breakthroughs and challenges. The government has rolled out a series of policies that are supportive to the development of China's water industry, which include the Implementation Opinions on Cooperation between Government and Social Capital on Water Pollution Prevention and Treatment (《关于推进水污染防治领域政府和社会资本合作的实施意见》) and the Water Pollution Prevention & Control Plan (《水污染防治行动计划》或"水十条"). These favourable policies are expected to further propel the growth of investments in China's water industry. Through internal integration, establishing reasonable institutional framework and setting clear goals, the Company will leverage on the favourable external policy factors and its market resources to enlarge its market share and will strive to be one of the top-tier players in the industry within 3 to 5 years."