China Water Affairs Achieves Robust Growth in Core Water Supply Business
The Profit Attributable to Owners of the Company for FY2019/20 Up 19.7% YoY
2020/6/29 ¤U¤È 04:06:58 cwg

Results Highlights:
(HK$ million)
For the 12 months ended 31 March
2019
2018
Change
Change*
Revenue
8,694.3
8,302.2
4.7%
9.7%
Gross Profit
3,758.5
3,463.8
8.5%
13.6%
Net Profit
2,507.3
2,130.3
17.8%
23.2%
EBITDA
4,213.5
3,575.8
17.8%
23.4%
Profit Attributable to Owners of the Company
1,639.5
1,369.2
19.7%
25.4%
Basic Earnings per Share
(HK cents)
102.1
85.1
20.0%
25.6%
Dividend per Share
(HK cents)
30
28
7.1%
-
* Excluding the impact from the fluctuation of RMB exchange rates
 
 (29 June 2020, 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 its annual results of the Company and its subsidiaries (the ¡§Group¡¨) for the twelve months ended 31 March 2020 (the ¡§Reporting Period¡¨).
 
During the Reporting Period, despite the impact of Covid-19 in the first quarter of 2020, the nature of the Group's utility business of core water business has become a prominent advantage. The water supply sector continued to grow substantially, realizing revenue of HK$7.224 billion, representing an increase of 18.6%* compared with last corresponding year; profit of HK$2.956 billion, representing a significant increase of 18.4%* compared with last corresponding year. The water supply sector continued to be the Group's largest revenue contribution segment, accounting for 83.1% of the Group's total revenue. Among them, revenue from water supply operation services, water supply connection services and water supply construction services increased by 13.7%*, 17.6%* and 22.6%* year-on-year respectively. In addition, due to the Group's effort in continuous implementation of the urban-rural water supply integration strategy and growth by both M&A and organic expansion, the water supply operation services has achieved an gratifying increase in water sales volume by more than 10% year-on-year.
 
* Excluding the impact from the fluctuation of RMB exchange rates

 
In terms of the Environmental Protection Business, China Water Affairs acquired 29.52% equity interest of Kangda International Environmental (stock code: 6136.HK) at the price of HK$1.2 billion, bringing 4.27 million tons/day to the sewage treatment capacity under management. Revenue from environmental protection operation segment recorded a stable increase of 9.5%*.
 
In terms of value-added services, the Group added more than 230 direct drinking water projects, with a revenue of HK$90.55 million in this sector. At the same time, the Group has vigorously promoted the Fingertip Water APP to fulfill the terminal application of smart water business. Fingertip Water APP¡¦s services covered 19 pilot cities while the first batch of three pilot water supply companies have covered more than 90% of its users. It is expected to expand the coverage in the next 1-2 years to other cities where their water supply services operated by the Group.
 
During the Reporting Period, the Group disposed of various non-core assets with a total of HK$500 million recouped and proceeds to be invested in its core water supply business.
 
On the back of its core Water Supply Business¡¦ rapid growth, the Group¡¦s revenue for the Reporting Period kept growing at HK$8.694 billion, representing a year-on-year increase of 9.7%*. Net profit recorded HK$3.759 billion, up 13.6%* year-on-year. EBITDA reached HK$4.214 billion, up 23.4%* year-on-year. Profit attributable to owners of the Company was HK$1.640 billion, up 25.4%* year-on-year.
 
As at 31 March 2020, China Water Affairs¡¦ cash and cash equivalents reached approximately HK$6.604 billion and its total assets amounted to approximately HK$41.903 billion, representing an increase of 43% and 17% respectively compared to the same period last year. The net gearing ratio further improved, down 3.4 ppt year-on-year, to 76.5%, a healthy and manageable level. The Group has maintained a sound financial position and sustained development resource.
 
In consideration of the satisfying results, the board of directors has proposed to pay the equity shareholders of the Company a final dividend of HK$16 cents per share. Together with the interim dividend of HK$14 cents per share, the total dividends for the year will be HK$30 cents per share, representing a steady increase of 7.1% as compared with the last corresponding year.
 
The outbreak of the Covid-19 pandemic across different regions has brought unprecedented impacts and challenges to the global economy. The nature of China Water Affairs¡¦ utility business has become particularly prominent with its investment value.
 
Looking forward, the Group will firmly implement its two core development strategies, namely urban-rural water supply integration and supply-drainage integration, focus on the development of its core water supply, further promote the value-added services including direct  drinking water business and smart water services, and improve the smart pipeline network system in order to boost its core competitiveness and provide better services to the society and people, so as to create higher returns for its shareholders.
 
~ End ~
* Excluding the impact from the fluctuation of RMB exchange rates
About China Water Affairs Group Limited
A leading market-oriented and cross region water supply operator in China and the only Hong Kong listed water company focusing on tap water. Headquartered in Hong Kong with two operation management centers in Beijing and Shenzhen. Covering almost 30 million people in over 100 cities in 20 provinces and 3 municipal cities. Total capacity: ~20 million m³ / per day. Management comprises of veteran experts in the water industry with insight into government policies. Included in the first batch of Shenzhen-Hong Kong Stock Connect by HKEX in 2016. Included in the FTSE Environmental Opportunities Asia Pacific Index since 2009.
 
This press release is issued by PRChina Limited on behalf of China Water Affairs Group Limited.
 
For investor and media enquiries
PRChina Limited
Liting Chen / Sherry Ren
Tel: (852) 2522 1838 / (852) 2522 1368

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