Results Highlights | (HK$ million) | For the 12 months ended 31 March | | 2022 | 2021 | Change | | Revenue | 12,949.8 | 10,345.5 | 25.2% | | Gross Profit | 4,962.2 | 4,338.6 | 14.4% | | Operating Profit | 4,149.3 | 3,687.1 | 12.5% | | Net Profit | 2,977.1 | 2,662.1 | 11.8% | | Profit Attributable to Shareholders | 1,893.6 | 1,692.5 | 11.9% | | Basic Earnings per Share (HK cents) | 117.0 | 106.0 | 10.4% | | Dividend per Share (HK cents) | 34.0 | 31.0 | 9.7% | (28 June 2022, Hong Kong) China Water Affairs Group Limited (‥China Water Affairs〃 or the ‥Company〃, stock code: 00855.HK), a leader of integrated water operation in China, announced today its annual results of the Company and its subsidiaries (the ‥Group〃) for the twelve months ended 31 March 2022 (the ‥Reporting Period〃 or the ‥Period〃). During the Reporting Period, global capital markets were fluctuated because of the start of the interest rate hike in U.S, the rise in inflation, the uncertainty of the epidemic and the conflict situation in Russia and Ukraine. Encountering the wax and wane of the COVID-19 pandemic which posed enormous challenges to domestic social and production activities, the Group demonstrated sustainable ‥resilience〃 by its predominant engagement in utility business with water supply service as its core and recorded total revenue of approximately HK$12.95 billion, representing a strong growth of 25.2% as compared with the last corresponding year. Gross profit was HK$4.96 billion, a steady increase of 14.4% over last year. Profit attributable to shareholders for the Period increased by 11.9% to approximately HK$1.894 billion. Basic earnings per share for the Period grew by 10.4% from last year to HK$1.17. The city water supply operation and construction segment achieved revenue of approximately HK$10.35 billion, representing a rapid and balanced growth of 21.1% over the same period last year, accounting for 79.9% of the total revenue and continuing to be the largest revenue contributor of the Group; this segment achieved profit of approximately HK$3.71 billion, representing a year-on-year growth of 9.4%. Revenue contribution from water supply operation services and water supply connection income amounted to HK$5.62 billion, representing a steady increase of 18.7% as compared with the last corresponding year. Among which, revenue from tap water supply operation rose by 20.3% year-on-year to HK$3.36 billion, while water sales amount increased by 11.7% year-on-year. Operating revenue from the new core business of pipeline direct drinking water drastically increased by 439.9% year-on-year to approximately HK$143.8 million. The environmental protection segment recorded total revenue of approximately HK$1.25 billion, representing a slight increase over last year and accounting for 9.7% of the Group's total revenue, and achieved a profit of approximately HK$411 million, representing a significant increase of 39.8% over last year. Of which, revenue from sewage and drainage operation services contributed HK$389.1 million, representing a steady increase of 18.2% over last year. During the year under review, the property business segment recorded a revenue of HK$531.7 million and achieved a profit of HK$118.3 million, representing a substantial increase of 278% over last year. This was mainly due to the increase in sales of property projects during the year. The Group considers that the prospects of pipeline direct drinking water business in China is huge and in line with the new concept of low-carbon green development. The Company believes that provision of premium pipeline direct drinking water will foster better health and life for the Chinese people and will then contribute to the development of social harmony and beautiful China. As the major focus of the Groupˇs business development in the next couple of years, the pipeline direct drinking water business made a remarkable breakthrough in the year under review, serving a population of over 3 million. Its revenue contribution amounted to HK$693.7 million, representing a significant increase of 379.4% over last year and accounting for over 5% of the Group's total revenue. During the period under review, the Group completed important strategic acquisitions such as the acquisition of Nanjing Aquacup Technology Co., Ltd. and five direct drinking water companies in Xuzhou, and increased the potential users by 11mn through cooperation with 7 other provincial and municipal leveled partners. The acquisitions and cooperation will further enhance the Group's technical expertise, expand its professional team, and strengthen its brand recognition, helping the Group to achieve high quality expansion of its pipeline drinking water business in major cities in Mainland China. In consideration of the satisfactory results and to reward the shareholdersˇ long-term support to the Group, the board of directors has proposed to pay the equity shareholders of the Company a final dividend of HK 18 cents per share. Together with the interim dividend of HK 16 cents per share, the total dividends for the year would amount to HK 34 cents per share, representing an increase of 9.7% from last year. Recently, several authorities and committees of the PRC had promogulated a series of policies to stabilize the economy by encouraging and enhancing infrastructure construction. At the same time, the ‥Measures for the Administration of Urban Water Supply Tariff〃, a new policy promogulated by the National Development and Reform Commission, came into effect, under which more transparency and higher predictability will be expected in the process and cycle of water tariff adjustment. It will provide further policy assurances for the healthy development of the Groupˇs water supply business. This year is a crucial year for the Groupˇs efforts to promote its pipeline direct drinking water business into one of its two predominant businesses. The Group will continue to accelerate the development of its pipeline direct drinking water business in various regions, with an aim to improve its service quality and provide urban and rural residents with better ‥last-meter〃 drinking water solutions. The Group will strive to fulfill the general desire of the people to improve their quality of life and take the lead to promote a low-carbon and healthy lifestyle. Looking ahead, the Group will take advantage of favorable policies and market opportunities, adhere to the win-win business development model of cooperation with local governments, position itself around the dual-core businesses of water supply and pipeline direct drinking water, adopt technology and innovation to create new business growth points, enhance operational efficiency and synergies, and provide customers with a full range of professional water services. While steadily improving the Groupˇs revenue and profitability, the Group will attain sustainable and high-quality development, contributing to the improvement of peopleˇs livelihood and creating higher returns for shareholders. ~END~
About China Water Affairs Group Limited A leading professional, 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. Operation management centers in Beijing and Shenzhen. The main business of the Group (including associated companies) is to operate urban water supply, sewage treatment and drainage and other related value-added services in the Mainland of China. Covering around 30 million people in over 100 cities in 20 provinces and 3 municipal cities. Total daily capacity: over 20 million m³, and the Group has established a leading position in the overall business operation mode in Chinaˇs water affairs market. 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 Ran Mo/ Alana Li / Rachel Chen Tel: (852) 2522 1838 / (852) 2522 1368 Email: rmo@prchina.com.hk ali@prchina.com.hk rchen@prchina.com.hk |
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