SINGAPORE (Aug 14): SIIC Environment recorded 2Q18 earnings of RMB 153.7 million ($30.7 million), a 28.2% increase compared to RMB 119.9 million in 2Q17.
This brings 1H18 earnings to RMB 255.6 million, 6.5% higher than RMB 240.0 million in 1H17.
Revenue for the quarter was RMB 1.67 billion, 68.1% higher than RMB 995.4 million a year ago, mainly due to higher revenue contributions from all of the group’s business segments.
The group’s Construction segment significantly increased to RMB 908.9 million from RMB 353.4 million in the previous year, due to relatively higher amount of construction activities in progress.
Revenue from Operating and maintenance income from service concession arrangements increased by 6.8% y-o-y to RMB 434.1 million, while revenue from Financial income from service concession arrangements was up by 35.9% y-o-y to RMB 214.9 million.
Service income from non-service concession arrangements amounted to RMB 44.2 million in revenue, 51.5% higher than last year due mainly due to a newly acquired entity.
Other revenue increased by 49.0% y-o-y to RMB 71.4 million, mainly due to higher volume of installation works carried out, which are ad-hoc in nature.
As cost of sales increased by 93.1% to RMB 1.24 billion, the group’s 2Q18 gross profit came in at RMB 431.7 million, 22.5% higher than RMB 352.4 million last year.
During the quarter, the group recorded other gains of RMB 1.78 million, compared to other losses of RMB 2.87 million a year ago, due mainly to the fluctuation of foreign exchange movement of RMB against SGD, as well as fair value change from financial assets during the period.
The group also recorded a loss of RMB 79.8 million from exchange difference arising from translation, compared to a gain of RMB 28.2 million in the previous year.
As at June 30, the group’s cash and cash equivalents stood at RMB 1.15 billion.
The group has declared an interim dividend of 1 cent per share, which will be payable on Sept 28.
On the outlook, the group remains aligned with the environmental priorities and key policies set by the government of the People’s Republic of China (PRC) to tackle pollution.
Year to date, the group has under contract and secured new projects across China in Hunan, Shenzhen, Ningbo, Henan, Heilongjiang, Jilin and Jiangxi, with design capacity totalling about 800,000 tons/day.
To this end, the group is committed to continue contributing to China’s water and wastewater treatment infrastructure, with a focus on enhancing its operating efficiency and implementing more concessionary arrangement projects across the country.
As at 10.48am, shares in SIIC Environment are trading flat at 37 cents.
