China Water Affairs Announces FY2015/16 Interim Results
Revenue of Water Segment Grows Strongly by 35% y-o-y
2015/11/26 ¤U¤È 01:39:13 cwg

Results Highlights:

For the 6 months ended 30 September
(HKD million)
Change (%)
Gross Profit
Profit from operation
Net profit
Profit attributable to Owners of
¡@the Company
¡]Segment Revenue from Water Business¡^
¡]Segment Profit from Water Business¡^
Basic earnings per share 
(HK cents)
Interim dividend per share 
(HK cents)

(26 November 2015, Hong Kong) China Water Affairs Group Limited (¡§China Water Affairs¡¨ or the ¡§Company¡¨, stock code: 00855.HK), a leading integrated water services operator in China, announced today the interim results of the Company and its subsidiaries (the ¡§Group¡¨) for the six months ended 30 September 2015 (the ¡§Period¡¨).

The core business of the Group recorded a robust growth during the Period under review. Segment revenue from Water  was HK$1,458 million, up 35.1% compared with the same period last year, representing 89.0% of the Group¡¦s total revenue. To be specific, the segment revenue from city water supply  amounted to HK$1,295 million, an increase of 29.8% compared with the corresponding period in 2014, remaining the largest revenue contributor to the Group. The segment profit of water supply, including city water supply and related installation works and meter installation, amounted to HK$536 million, an increase of 33.0% compared with the last corresponding period. The segment revenue from sewage treatment amounted to HK$162 million, representing a significant increase of 98.8% as compared with the last corresponding period and segment profit of sewage treatment was HK$77.7 million, up 178.5% year-on year, which was mainly attributable to the growth of core city water supply and sewage treatment business. Total revenue of the Group was HK$1,638 million, up 20.8% year-on-year. Gross profit advanced 26.5% year-on-year to HK$ 806 million and gross profit margin increased by 2 PPT to 49%, reflecting the Group¡¦s profitability further improved. Net Profit of the Group was HK$448 million, up 19.5% compared with the last corresponding period.

¡§During the Period under review, the Group has taken full advantage of the business opportunities amidst a series of favorable policies to further consolidate the Water business as our core business through active mergers and acquisitions. By expanding the capacity, the Group effectively improved the operating efficiency and achieved  robust growth in Water business, leading to the growth of the Group¡¦s overall performance¡¨ said Mr. Duan Chuan Liang, Chairman of China Water Affairs.

The Group maintained a sound financial position. As of 30 September 2015, its total assets were approximately HK$17.98 billion, up 19.1% from the end of March 2015. Total equity amounted to HK$7,225 million, an increase of 12.3% from the end of March 2015. The Board of directors declared an interim dividend of 3 Hong Kong cents per share, which remained unchanged from the same period of the previous financial year.

Looking forward, Mr. Duan Chuan Liang commented, ¡§It is one of the twin engines for China¡¦s economy to maintain medium-to-high level of growth to further deepen the reform in the public utility sectors, encourage the social and private participation to improve the quality and efficiency of utility services, and transform the traditional engine of growth. The Central Government has therefore issued a series of policies and guidelines: the State Council¡¦s policy of ¡¥Water Ten Plan¡¦ has rolled out the road map of water tariff reform on 2 April 2015. On 12 October 2015, the State Council issued a further document on tariff reform ¡¥Several Opinions of the CPC Central Committee and the State Council on Advancing the Pricing Mechanism Reform¡¦, stressing the importance of the market mechanism and its role in the tariff reform. On 16 October, the State Council issued ¡¥Guideline to Promote Building Sponge Cities¡¦, which opens a grand water business market to the operators with experience of managing and operating pipeline networks. With the favorable government¡¦s macro policies, China Water Affairs will be actively developing its Water core business. The Company has set up a business development strategy to focus on its core business and to accelerate the divestment of non-core assets to provide the financial support for the future merger and acquisition of water assets. The newly acquired water assets will create synergies with our existing water businesses and improve the operational efficiency as a whole to bring higher returns to our shareholders.¡¨

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About China Water Affairs Group Limited
China Water Affairs Group Limited is principally engaged in waterworks investment and operations as well as other related businesses in the PRC. The Group¡¦s businesses include urban water supply, water supply systems management, meter installation and related value-added businesses. Currently, the Group¡¦s businesses cover 3 municipalities of Beijing, Tianjin and Chongqing and over 40 cities in various provinces including Guangdong, Jiangxi, Henan, Jiangsu, Hunan, Hubei, Sichuan etc. With a well-established cooperative relationship with various local government authorities, the Group has positioned itself in a leading position in China¡¦s water industry.

This press release is issued by PRChina Limited on behalf of China Water Affairs Group Limited.

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