SINGAPORE (Nov 13): China Everbright Water (CEW) announced that its 3Q17 earnings increased 35% to HK$122.8 million ($19.7 million) compared to HK$91.1 million a year ago.
Revenue for the period came in at HK$746.1 million, 35% higher than HK$553.5 million a year ago, mainly attributable to the increase of HK$128.28 million in construction revenue.
Construction revenue came in at HKD330.79 compared to HK$202.5 million a year ago, mainly attributable to construction of the sponge city construction project and the river-basin ecological restoration project in addition to the expansion and upgrading of several waste water treatment plants which were under construction during 3Q17.
Similarly, cost of sales increased 36% to HK$449.0 million from HK$330.7 million a year ago, mainly due to the increase in construction cost arising from the increased construction services, which contributed to the group’s construction revenue.
Hence, gross profit for 3Q17 stood at HK$297.2 million, 33% higher than $222.8 million recorded in the same period last year.
Administrative and other operating expenses dropped 11% to HK$56.8 million compared to HK$64.0 million in the previous year.
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This decrease was a combined effect of an increase of staff costs, marketing expenses and other operating expenses arising from the group’s business expansion, but offset by the non-occurrence of foreign exchange losses arising from borrowings pegged to USD which were incurred in 3Q16.
These borrowings pegged to USD had been fully repaid at end-July 2016 and no further foreign exchange losses related to such borrowings were recognised since then.
Finance income more than trebled to HK$3.58 million from HK$1.69 million in 3Q17.
However, income tax expense increased 76% to HK$75.0 million compared to $42.7 million last year.
An Xuesong, executive director and CEO of CEW says, “Looking ahead, we will closely follow water environment management policies issued by governments at all levels, keep exploring new business areas, continuously improve core technological competitiveness, and strengthen our competitive advantages in operation and management.”
Shares in CEW closed 1 cent higher at 46 cents on Monday.
