Profit for FY2017/18 Surges 33.6% YoYÞPaying 1.3 Times More in Total Dividends
 
2018/6/28 ¤U¤È 12:32:23 tatyi

Results Highlights:
(HK$ million)
For the 12 months ended 31 March
2018
2017
Change
Revenue
7,580
5,708
+32.8%
Gross Profit
3,271
2,485
+31.6%
Recurring Operating Profit*
2,718
1,976
+37.5%
Recurring EBITDA*
3,123
2,307
+35.4%
Net Profit
1,762
1,379
+27.7%
Profit attributable to Owners of the Company
1,141
854
+33.6%
Basic earnings per share (HK cents)
72.62
56.72
+28.0%
Dividend per share
(HK cents)
23
10
(excluding special dividends of HK 10 cents)
+130%
*(Excluding the effects arising from the fair value gain on investment properties and the changes in fair value of derivative financial assets)
 
(28 June 2018, Hong Kong) China Water Affairs Group Limited (China Water Affairs¡eor the Company, stock code: 00855.HK), a leading integrated water services operator in China, announced today the annual results of the Company and its subsidiaries (the Group) for the twelve months ended 31 March 2018 (the Period).
 
Underpinned by robust growth in its core water business, the Group recorded revenue of approximately HK$7,580 million for the Period, representing a significant growth of 32.8% year-on-year. Meanwhile, profit attributable to owners of the Company surged by 33.6% year-on-year to HK$1,141 million.
 
Excluding the effects of the fair value gain on investment properties and the changes in fair value of derivative financial assets, the Group's recurring operating profit and recurring EBITDA would be approximately HK$2,718 million and HK$3,123 million respectively, representing 37.5% and 35.4% year-on-year growth. The results reflected that the Group's core operations maintained brisk growth.
 
The Board recommended to pay a final dividend of HK 15 cents per share to reward shareholders for their long-term support to the Company. Together with the interim dividend of HK 8 cents per share, the total dividend for the Period amounted to HK 23 cents per share, up 1.3 times when compared with total dividends of HK 10 cents per share for the previous fiscal year (excluding special dividends of HK 10 cents).
 
During the Period, the Water Business segment generated approximately HK$7,018 million in revenue, representing a 27.3% year-on-year growth and accounting for 92.6% of total revenue. It remained the growth driver of the Group. A further breakdown showed that the revenue from City Water Supply business (including water supply, water related connection works and water meter installation services) amounted to approximately HK$6,204 million, representing a significant increase of 25.1% year-on-year. The profit of this sub-segment climbed 30.1% year-on-year to approximately HK$2,402 million, reflecting the core water supply business has entered the mature phase with its profit growing at faster pace than revenue. Meanwhile, the Sewage Treatment business (including sewage treatment and drainage operation and construction) generated revenue of approximately HK$814 million, representing a significant increase of 47.2% year-on-year. Profit of this sub-segment was HK$271 million, up 30.4% year-on-year.
 
éDuring the period under review, the Group adhered to the established strategies and focused on the development of core water business. We leveraged on our competitive edges to drive the rapid growth of City Water Supply and Sewage Treatment businesses. While attaching great importance to the urban-rural integration water supply projects and the integration of supply-drainage projects, we accelerated the acquisition of water business and its development. In the meantime, we commenced the provision of some value-added services such as connection work services. As a result, the water supply business maintained rapid growth. Moreover, the sewage treatment operation gained steam as its operational efficiency was further enhanced due to facilities upgrade coupled with increased water environment construction work," said Mr. Duan Chuan Liang, Chairman of China Water Affairs.
 
The Group retained a sound financial position. As of 31 March 2018, its total assets were approximately HK$28.59 billion, up 11.5% year-on-year. Its total equity increased by 24.5% year-on-year to approximately HK$11.15 billion. As the Group¡Ös total interest-bearing borrowings dropped 3.9% year-on-year to approximately HK$10.88 billion, its total gearing ratio decreased by 4 percentage points to 61% from a year ago.
 
During the Period, the Group made significant progress in disposing of non-core assets and realized cash proceeds of more than HK$830 million. All of them will be used for business acquisition and capital expenditures for organic growth.
 
Looking ahead, Mr. Duan Chuan Liang said, éWhile the '13th Five-Year Plan' will be fully implemented, the government elaborated in its work report at the '19th National Congress of the CPC' the strategic plan to speed up the creation of an ecological civilization, to promote green development and to develop a Beautiful China. Besides, the implementation of rural revitalization strategy is on track. These policies herald tremendous business opportunities to the water supply industry. As the urbanization is gathering speed in China and the government is vigorously promoting the urban-rural integration water supply program, there is pressing need for the upgrading and scaling up of domestic water supply facilities. The water supply, sewage treatment and water environment management sectors are expected to grow steadily.¡e
 

 
éThe Group will keep pace with the market trend and fully grasp the opportunities that may arise. Boasting extensive experience of operation and management gained throughout the past years together with the trust placed with us by the government and the public, we are well prepared to leverage on the Group¡Ös competitive edges and strong business presence in various cities to further expand our business in the service areas by focusing on the urban-rural integration water supply projects and the integration of supply-drainage projects. In addition, we will accelerate the development and acquisition of water businesses, optimizing our business layout and prudently carrying out city environmental service businesses, including water environment management, sanitation and cleaning, solid waste and hazardous waste treatment, hence creating greater synergies among our operations.¡e
 
"In response to the increasing demand for tap water of better quality, the Group will further develop direct drinking water and secondary water supply services. We will improve the construction of smart pipeline network system to enhance our water business service capacity and quality. Besides, we will make persistent efforts to enhance our core competitiveness in order to provide better services to the public and to create greater investment value for shareholders."
 
~ End ~
 
About China Water Affairs Group Limited
China Water Affairs Group Limited is principally engaged in city water supply, sewage treatment and drainage and related value-added businesses in the PRC. Currently, the Group¡Ös businesses cover about 60 cities in 3 municipalities of Beijing, Tianjin and Chongqing, and in 13 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¡Ös water industry.
 
This press release is issued by PRChina Limited on behalf of China Water Affairs Group Limited.
 
For investor and media enquiries
PRChina Limited
David Shiu / Charles Chan / Doris Au-Yeung
Tel: (852) 2522 1838 / (852) 2522 1368
           ckchan@prchina.com.hk
           dauyeung@prchina.com.hk

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