SINGAPORE (Feb 20): China Everbright Water has announced FY18 earnings of HK$676.5 million ($116.5 million), growing 32% y-o-y from HK$513.4 million a year ago on the back of higher revenue.
Revenue for the full year grew 33% to HK$4.8 billion due to higher construction revenue, operation revenue and finance income.
The growth in revenue from the construction segment came mainly from the group’s sponge city construction project and water supply projects, in addition to the expansion and upgrading of several waste water treatment projects under construction during FY18;
Meanwhile, operation revenue grew as new projects commenced operations; tariff hikes for several projects were effected; and one-off income arising from retrospective tariff adjustment in relation to two waste water treatment projects was recognised.
The y-o-y increase in finance income was due to higher service concession financial receivables.
During the year under review, gross profit margin remained steady at 34%.
See also: Trump wins Republican nomination, setting up rematch with Biden
As at end-2018, China Everbright’s gearing ratio was 55.8% while the group held 11 projects in total with an aggregate investment of approximately RMB18.7 billion ($3.8 billion) as well as a total dialy water treatment capacity of over million cubic metres.
“Against the backdrop of China’s key policies and regulations providing clearer directions and more stringent regulatory guidance for future industry growth, ranging from the water environment management sector to the environmental protection industry, Everbright Water will continue adhering to the ‘Technology Leads Development’ ethos and enhancing its support to technological research and development,” says An Xuesong, executive director and CEO of the group.
“By leveraging on various measures, Everbright Water will continue stable growth and seek for opportunities in a rapidly changing market environment to further enhance its overall strength and influence, with an aim of facilitating the continuous improvement of the water environment,” he adds.
Shares in the group last traded flat at 34 cents before the midday trading break.
