CHINA Everbright Water has, through its wholly owned subsidiary, entered into a supplementary agreement for an upgrading project worth 253 million yuan (S$52.3 million) in China' s Shaanxi province.

 

The project is based on a build-operate-transfer model and will involve waste-water treatment plant upgrading and advanced sludge dewatering for the Xianyang waste-water treatment project, the environmental protection company said on Monday.

 

The concession period of the project will expire concurrently with the Xianyang waste-water treatment project Phase One and Phase Two in October 2031 and December 2044 respectively.

 

Following the upgrading, the discharged water of Xianyang project Phases One and Two will meet a higher discharge standard set out by Shaanxi province. It will further reduce the water content of sludge generated by Xianyang project Phases One and Two to no higher than 60 per cent.

 

China Everbright Water said: " Securing the Xianyang upgrading project will further strengthen Everbright Water' s waste-water treatment service capability in Xianyang. It will also enhance the cooperation between the company and the local government authorities, and lay a good foundation for the company to secure more water projects in the local market."

 

Everbright Water has posted 23% growth in earnings of HK$1.02 billion ($174.3 million) for the FY2020 ended December, from earnings of HK$833.5 million a year ago.

Group revenue for the year climbed 2% y-o-y to HK$5.66 billion, while gross profit grew 16% y-o-y to HK$2.20 billion.

 

During the period, gross profit margin (GPM) increased 5 percentage points to 39%.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 17% y-o-y to HK$1.93 billion.

 

Basic earnings per share (EPS) stood at 35.80 HK cents, up 19% y-o-y.

 

For the FY2020, the group attributes its growth to its focus on traditional business sectors like waste water treatment. It also continued solidifying its market position in regions including the Yangtze River Economic Belt and the Bohai Economic Rim.

The group, during the period, secured nine new projects valued at RMB1.19 billion ($243.2 million).

 

Such projects contribute an additional designed daily waste water treatment capacity (inclusive of the O& M project and exclusive of the EPC project) of 290,000 m3 and an additional designed daily reusable water supply capacity of 30,000 cubic metres, says the group.

 

As at Dec 31, 2020, the group invested in and held 138 environmental protection projects, commanding a total investment of about RMB24.68 billion.

 

Cash and cash equivalents as at end-December stood at HK$1.72 billion.

 

For the FY2020, the group has declared a final dividend of HK6.07 cents (or 1.04 cents), bringing the total dividend for FY2020 to HK9.81 cents (or 1.71 cents).

 

&ldquo In 2020, amid the opportunities and challenges in the external environment, Everbright Water focused on the &lsquo Innovation-driven Development&rsquo ethos and made a concerted effort to steadily forge ahead,&rdquo says Everbright Water&rsquo s executive director and CEO An Xuesong.

 

&ldquo As a result, the group made good progress in the synergy and development of asset-light and assetheavy businesses, refined management and expansion of financing channels. In addition, it demonstrated a stable progress in its overall business, thereby further cementing its fully-fledged business coverage and full industry chain in the area of water environment management,&rdquo he adds.

 

Looking ahead, An says the group will &ldquo seize opportunities arising from the national policies continue its optimisation of the asset-light and asset-heavy allocation pursue development that is led by innovation accelerate the development of digitalisation across the group strengthen refined management and create value by &lsquo resource recovery&rsquo and leverage on its dual listing status in Singapore and Hong Kong to drive business integration with capital.&rdquo