FY2016/17 Annual Results Announcement
Profit attributable to shareholders Grows Strongly by 40.4% Y-O-Y
2017/6/29 ¤U¤È 05:15:24 tatyi

Results Highlights:

 

 

   For the year ended 31 March 

(HKD million)

FY 2017

FY 2016

¡]Restated¡^

Change

Before exchange 

rate change 

effect 

Revenue

5,707.9

4,739.9

20.4%

27.8%

Gross Profit

2,484.9 

2,097.9 

18.4%

25.7%

Profit from operation

2,271.1 

1,646.5 

37.9%

46.3%

Profit for the year

1,379.3 

1,099.9 

25.4%

33.1%

Profit attributable to shareholders

853.6 

608.1 

40.4%

48.9%

Segment Revenue from City Water Supply Business

4,960.8

4,000.3

24.0%

31.6%

Segment Profit from City Water Supply Business

1,846.6

1,468.1

25.8%

33.4%

Basic Earnings per share (HK cents)

56.7

40.3

40.7%

48.7%

Dividend per share (HK cents)

20.0

8.0

150.0%

N/A

(29 March 2017, Hong Kong) China Water Affairs Group Limited (¡§China Water Affairs¡¨ or the ¡§Company¡¨, stock code: 0855.HK), a leading integrated water services operator in China, announced today the FY2016/17 annual results of the Company and its subsidiaries (the ¡§Group¡¨) for the twelve months ended 31 March 2017 (the ¡§Period¡¨).

During the period under review, the Group¡¦s total revenue increased by about 20.4% to HK$5.7 billion. Gross profit increased by 18.4% to HK$2.5 billion, reflecting company¡¦s strong profitability of core business. If the impact of RMB depreciation in the period was eliminated, total revenue would increase by 27.8%, and gross profit would increase by 25.7% Y-O-Y. Operating profit increased by 37.9% Y-O-Y to HK$2.3 billion. Net profit increased by 25.4% Y-O-Y to HK$1.4 billion. Profit attributable to shareholders significantly increased by 40.4% Y-O-Y to HK$853.6 million. If the impact of exchange rate changes during the period was eliminated, net profit would increase by 33.1% Y-O-Y and profit attributable to shareholders would increase by 48.9%.

During the financial year, the Group¡¦s water segment recorded remarkable growth. The revenue from City Water Supply reached HK$5.0 billion¡Aan increase of 24.0% Y-O-Y, and the corresponding profit rose by 25.8% to HK$1.9 billion. The revenue of sewage treatment significantly increased by 63.1% to HK$552.9 million¡Asegment profit about HK$207.8 million. The water business segment revenue reached HK$5.5 billion, representing 96.6% of the total revenue, and the corresponding segment profit from water business arose to HK$2.1 billion.
While concentrating on the development of core water businesses, the Group also accelerated the pace of non-core asset disposal. During the Period, the Group sold 29% of the shares of China City Infrastructure Group (CCIG). In addition, the Group also sold most of the concrete business and recorded a gain of around HK$44 million.
The Group maintained a sound financial position. As of 31 March 2017 its total assets were approximately HK$ 25.6 billion, up 28.3% from the end of March 2016. Total equity amounted to HK$9.0 billion, an increase of 6.1% from the end of March 2016. To express Group¡¦s gratitude for the long-term support from shareholders and to mark the coming of the Group¡¦s 15th anniversary in the water affairs business, the Board proposed a final dividend of 6 Hong Kong cents and a special dividend of 10 Hong Kong cents. The total dividend for the fiscal year will be 20 Hong Kong cents. 

Looking forward, the company is embracing a valuable opportunity: on one hand, China is further pushing forward urbanisation and industrialisation; on the other hand, the Chinese government provides public services through Public-Private Partnership (¡§PPP¡¨), and the current government even determined ecological civilisation as the nation¡¦s strategy. Amid challenges such as shortage of water resources, severe water pollution and unbalanced distribution of water resources, the government took a bold move and defined water as a commodity, introduced trading of water rights and let the price of such commonest public product to be set by the market eventually. Progressive water tariff system has also been implemented so as to protect the fundamental rights of the low-income group.

Mr. Duan Chuan Liang, Chairman of China Water Affairs indicates, with our sound internal financial resources, we are well positioned to grasp every development opportunity. Throughout the years of water supply operations, we have earned trust from the government and public, and acquired experience of operation and management. We shall uphold our business vision of ¡§the highest excellence is like that of water¡¨ and ¡§kindness to society¡¨ and position actively the water supply market countrywide. We will also continue to enhance our internal management and accelerate the disposal of non-core assets with an aim of improving the Group¡¦s core competitiveness and corporate value, and maximising returns for our shareholders.

 


- 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¡¦s businesses include urban water supply, water supply systems management, meter installation and related value-added businesses. Currently, the Group¡¦s businesses cover 50 cities in the municipalities of Beijing, Tianjin and Chongqing and various provinces including Guangdong, Jiangxi, Henan, Jiangsu, Hubei, 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 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 / Chloe Chow
Tel     :  (852) 3970 2177/ (852) 3970 2277/ (852) 3641 1315
E-mail  :  po@wsfg.hk/chinawater@wsfg.hk

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