FY2016/2017 Interim Results Announcement
Revenue of City Water Supply Business Grows Strongly by 70% Y-O-Y
2016/12/1 ¤W¤È 11:23:10 tatyi

Results Highlights:
 
For the 6 months ended 30 September
(HKD million)
2016
2015
Change
Revenue
3,020
1,898
59%
Gross Profit
1,246
861
45%
Profit from operation
1,183
708
67%
Profit for the period
672
492
36%
Profit attributable to shareholders
429
287
49%
Segment Revenue from City Water Supply Business
2,645
1,556
70%
Segment Profit from City Water Supply Business
917
592
55%
Basic Earnings per share (HK cents)
28.43
19.2
48%
Dividend per share (HK cents)
4
3
33%
 
(30 November 2016, Hong Kong) China Water Affairs Group Limited (¡LChina Water Affairs¡² or the ¡LCompany¡², stock code: 0855.HK), a leading integrated water services operator in China, announced today the FY2016/2017 interim results of the Company and its subsidiaries (the ¡LGroup¡²) for the six months ended 30 September 2016 (the ¡LPeriod¡²).
 
During the period under review, the Group£¾s total revenue increased by about 59% to HK$3.02 billion, the Group maintained a healthy growth in overall results. The Group£¾s gross profit increased by 45% to HK$1.246 billion, reflecting company£¾s strong profitability of core business. Profit from operation increased by 67% Y-O-Y, to HK$1.183 billion. The net profit increased by 36% Y-O-Y to HK$672 million. Profit attributable to shareholders increased by 49% Y-O-Y to HK$429 million.
 
During the half financial year, the Group£¾s water segment recorded remarkable growth. The revenue from City Water Supply reached HK$2.645 billionÞan increase of 70% Y-O-Y, and the corresponding profit rose by 55% to HK$917 million. The revenue of sewage treatment significantly increased by 52.6% to HK$248 million and the corresponding profit increased to around HK$80 million. The water business segment revenue reached HK$2.893 billion, representing 95.79% of the total revenue, and segment profit from water business arise to HK$997 million, representing 80.34% of the total segment profit.
 
The Group maintained a sound financial position. As of 30 September 2016 its total assets were approximately HK$ 21.918 billion, up 10% from the end of March 2016. Total equity amounted to HK$8.667 billion, an increase of 3% from the end of March 2016. In order to express Group£¾s gratitude for the long-term support from shareholders, the Group proposed to pay an Interim dividend of four Hong Kong cents per ordinary share for this half financial year.  
 
For the prospects, with the progress of marketization of water industry and the deepening of water price reform, a series of macroeconomic policies including the promulgation of ¡LWater Ten Plan¡² and the ¡LInterim Measures for the pilot Reform of Water Resource Tax¡² jointly issued by Ministry of Finance, State Administration of Taxation and Ministry of Water Resources in May 2016, all marked the first step in deepening water tarrif reform. The change from water resources fee to water resource tax enables a more sound and comprehensive legal system covering water pricing and makes the cost of water supply more visible, this will greatly boost the confidence of private investors entering the public service sector, bolster the vitality and creativity of social capital, so as to promote sustainable economic development.
 
2016 represents the onset of the Thirteen Five-Year Plan, Mr. Duan Chuan Liang, the Chairman of China Water Affairs, said: ¡LBenefitting from supportive and encouraging national policies, water industry is expected to enjoy prosperous prospect. Based on the steady development of the Company under the new circumstance and keeping pace with the direction of the national development policies, the Company is expected to continuing its rapid development. Meanwhile, China Water Affairs has more than ten years£¾ experience and accumulation in the industry, its water asset is mature already, the Company is spearing no effort to enhance capacity and efficiency, further to develop the its value. Based on this, the Company will seize this historic opportunity to focus on and further its efforts in the development of its core business of water supply and sewage treatment, accelerating the disposal of non-core assets including land bank, reducing the resources to other non-core business, while deploying proceeds obtained from disposals to accelerate the mergers and acquisitions for its core business and speeding up its overall development. The Company will continue to strive for the provision of reliable and clean drinking water for the country and contributes to the county£¾s sustainable and stable development, while continue to provide better returns for our shareholders.¡²  
 
- End -
 
 
 
 
 
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£¾s businesses include urban water supply, water supply systems management, meter installation and related value-added businesses. Currently, the Group£¾s 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£¾s water industry.
 
 
This press release is distributed by Wonderful Sky Financial Group Company Limited for China Water Affairs Group Limited.
 
For further information, please contact:
 
Wonderful Sky Financial Group Limited
Jacqueline Wong / Irene Zhou / Iris Chen
Tel     :  (852) 3970 2177/ (852) 3970 2277/ (852) 3970 2190
E-mail  :  po@wsfg.hk/chinawater@wsfg.hk

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