China Water Affairs Announces FY2015/16 Annual Results
Profit Surges 48.8% on Robust Growth of Core Water Businesses
2016/6/27 ¤U¤È 01:41:42 cwg

  Results Highlights:


For the 12 months ended 31 March

(HK$ million)



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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

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Dividend per share

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(27 June 2016, 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, today announced the annual results of the Company and its subsidiaries (the ¡§Group¡¨) for the twelve months ended 31 March 2016 (the ¡§Period¡¨).


Underpinned by robust growth of its core businesses, the Group¡¦s revenue for the Period surged 41.1% year-on-year to approximately HK$4.033 billion, with its gross profit increased by 40.5% year-on-year to approximately HK$1.901 billion. Profit attributable to owners of the Company soared 48.8% to approximately HK$552 million from the previous year. The board of directors recommended the payment of final dividend of HK5 cents per share. Together with the interim dividend of HK3 cents per share, the total dividend for the year will be HK8 cents per share, representing an increase of 14.3% from the previous year.


Revenue from the water segment climbed 53.4% year-on-year to approximately HK$3.632 billion during the Period, which accounted for 90.1% of the Group¡¦s total revenue and remained its largest revenue contributor. A further breakdown shows that revenue from city water supply operation (including city water supply, related installation works and meter installation) surged 49.9% year-on-year to approximately HK$3.293 billion and the profit of this segment grew 35.0% year-on-year to approximately HK$1.271 billion. Meanwhile, revenue from sewage treatment operation (including sewage treatment, drainage operation and construction) jumped 99.5% year-on-year to approximately HK$339 million, and the profit of this segment increased by over 2.3-fold to approximately HK$184 million from the previous year.


¡§During the period under review, the water industry received a strong boost as the Public-Private Partnership (¡§PPP¡¨) model was further promoted and implemented in tandem with the launch of a number of favourable macro policies like the Water Ten Plan. The Group grasped the valuable opportunities arising from the government¡¦s supportive policies towards the water industry, further expanded our investments. We completed various acquisitions, including the substantial acquisition of Gold Trust, which helped drive the growth in the Group¡¦s revenue and profit. Furthermore, the Group made continuous efforts to enhance operating efficiency and to extend the network connection to more users, thereby laying a solid foundation for our sustainable organic growth,¡¨ said Mr. Duan Chuan Liang, Chairman of China Water Affairs.


The Group maintained a sound financial position. As of 31 March 2016, its total assets reached approximately HK$18.87 billion, up 25% from a year ago. Total equity amounted to approximately HK$7.59 billion, up 18% from a year ago.


The Group received the syndicated B loan facility of up to US$200 million from the Asian Development Bank in the Period, in addition to the International Finance Corporation¡¦s investment of US$20 million in its shares and US$70 million long-term loan. These funding exercises showcase that the Group¡¦s corporate mission and business model have been highly recognized by major international institutions. They are of significant importance to the Group¡¦s future development.


Looking forward, Mr. Duan Chuan Liang commented, ¡§This year sees the first year of implementation of the Thirteenth Five-year Plan. The Group will seize the development opportunities created by the government¡¦s favourable policies, optimize and implement its business plans. According to the Water Ten Plan released by the State Council last year, the government stressed that the market mechanism should play a greater role in this sector and it would accelerate the water pricing reform. As the water tariff reform and progressive water tariff system will be implemented throughout the country, the Group will see a more favourable environment for the growth in our profit and investment returns. Besides, as the government is accelerating the procedures of legislation of the PPP, the barriers to private investment in public services will be further removed, which will create ample room for private sector¡¦s expansion.¡¨


¡§We will coordinate the development of water business through our management centre for Northern China in Beijing and that for Southern China in Shenzhen. While taking advantage of favourable policies to foster our stable growth, we will also actively explore suitable targets for acquisition and cooperation so as to expand our operations and optimize our business structure. Meanwhile, the Group will accelerate the disposal of non-core assets and focus on the development of c, ore businesses to provide financial support to our future acquisitions. Moreover, we will reinforce our internal management and further enhance our operational efficiency, whereby strengthening the Group¡¦s overall core business and internal efficiency and generating better returns to 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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