SIIC Environment Holdings has reported earnings of RMB160.1 million ($33.0 million) for the 1QFY2021 ended March, 23.1% higher than earnings of RMB130.1 million in the year before.
Revenue surged 54% y-o-y to RMB1.62 billion, while gross profit increased 34.1% y-o-y to RMB553.5 million.
The company’s construction income increased by over two folds y-o-y to RMB571 million, mainly due to the delay in construction projects during the Covid-19 outbreak in the 1QFY2020.
Work on projects returned to normal with a marked increase in the number of projects against the year before.
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Operating and maintenance income and financial income from service concession arrangements was up 19.3% y-o-y to RMB981 million as a result of increase in wastewater treatment volume and average treatment tariff.
Overall gross profit margin (GPM) narrowed by 5.1 percentage points to 34.1% due to lower GPM projects contributing a larger share of profit.
That said, the group’s actual operating business maintained a stable GPM than that in the previous periods.
Cash and cash equivalents as at March 31, stood at RMB3.71 billion.
SEE:SIIC Environment in $21.1 mil joint venture to build Shandong WTE facility
The group says it has completed the issuance of the first batch of corporate bonds (Panda bonds) of a total of RMB1.5 billion carrying an interest rate of 3.89% on March 15, which have subscribed by professional investors in China, which has allowed the group to secure lower cost financing.
“In the 1QFY2021, the group recorded revenue growth across all business segments. Construction income, in particular, surged by 226.7% y-o-y, indicating that the group's operations are back on the fast growth track,” says CEO Yang Jianwei.
“With the extensive experience, high quality of projects, strong potential and support of national policies that management have, the Company will keep strengthening its strategic development plan for the Yangtze River Delta and also the Guangdong-Hong Kong-Macao Bay Area by actively enrich project resources, speed up the development of environmental technologies and push for the integration of industry and finance with the aims of driving high-quality development of the company and enhance a long-term sustainable returns for shareholders,” Yang adds.
Shares in SIIC closed flat at 24 cents on May 10.
