SINGAPORE (Feb 28): SIIC Environment reported an 8.9% rise in 4Q17 earnings to RMB 185.4 million ($38.7 million) from a year ago.
This brings FY17 earnings to RMB 535.7 million, 17.7% higher than earnings of RMB 454.9 million in FY16.
Revenue for 4Q17 increased by 13.4% to RMB 1.29 billion from RMB 1.13 billion, due to an increase in across all the group's business segments, except its other revenue which contributed the least to the overall revenue.
Construction revenue was 5.3% higher at RMB 545.4 million, mainly due to relatively higher amount of construction activities in progress as well as newly acquired entities.
Operating and maintenance income from service concession arrangements increased by 20.6% to RMB 396.1 million, while financial income from service concession arrangements was up 45.1% to RMB 220.2 million, these were due mainly to higher water treatment and supply sales volume; and contribution by newly acquired entities.
Service income was 8.1% higher than last year at RMB 35.1 million, due to contribution by newly acquired entities.
Other revenue was 14.6% lower at RMB 86.8 million, due to lower volume of installation works carried out, which are ad hoc in nature during the quarter
With cost of sales increasing by 9.7% to RMB 955.0 million, gross profit came in at RMB 330.7 million, 25.7% higher than RMB 2263.1 million last year.
Other operating income increased by 61.7% to RMB 28.8 million from RMB 17.8 million a year ago.
Selling and distribution costs were 48.1% higher at RMB 23.8 million compared to RMB 16.0 million in the previous year
Finance income more than doubled to RMB 9.04 million from RMB 4.15 million last year
Other income surged to RMB 172.4 million from RMB 11.2 million a year ago, mainly due to gains on disposal of listed available-for-sale financial instrument and newly acquired entities.
Zhou Jun, executive chairman of SIIC Environment, says, “We continue to expand across the environmental industry value chain. We will further improve our operational efficiency and competitiveness of existing projects, as well as explore opportunities to invest and acquire more accretive assets in China and overseas.”
As at 3.05pm, shares in SIIC Environment are trading at 52 cents.
