[Press release]
CANVEST ANNOUNCES OUTSTANDING 2017 INTERIM RESULTS PROFIT ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY CLIMBS 47.0% TO HK$226.1 MILLIONHighlights |
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Financial Highlights (Unaudited)
Six Months Ended 30 June | |||
Change | |||
2017 | 2016 | ||
Revenue (HK$'000) Included: Revenue from power sales and waste treatment (HK$'000) | 1,158,013 444,211 | 670,039 375,470 | +72.8% +18.3% |
Gross profit (HK$'000) | 351,874 | 247,575 | +42.1% |
EBITDA (HK$'000) | 398,988 | 286,964 | +39.0% |
Profit attributable to equity holders of the Company (HK$'000) | 226,135 | 153,843 | +47.0% |
Basic earnings per share (HK cents) | 10.1 | 7.7 | +31.2% |
Interim dividend per share (HK cents) | 1.3 | 1.1 | +18.2% |
(16 August 2017, Hong Kong) - Canvest Environmental Protection Group Company Limited ("Canvest" or the "Company," collectively with its subsidiaries the "Group;" stock code: 1381), announced today its unaudited interim results for the six months ended 30 June 2017 ("the Period").
The Group achieved satisfactory results during the Period. Its revenue increased by 72.8% year-on-year to HK$1,158.0 million, and profit attributable to equity holders of the Company climbed 47.0% year-on-year to HK$226.1 million. The increases were mainly attributable to the increase in construction revenue from additional projects under construction. Gross profit amounted to HK$351.9 million, representing a year-on-year increase of 42.1%. After taking into consideration the Group's development plan and investment returns to
shareholders, the Board of the Company (the "Board") has declared an interim dividend
of HK1.3 cents per ordinary share.
Ms. Loretta Lee, Chairlady of Canvest, said, "In the first half of 2017, China continued to see stable economic growth, and green development remained a key focus. The "13th Five-Year National Urban Solid Waste Treatment Facilities Construction Plan" seeks to achieve zero landfill use for disposal of municipal solid waste in certain cities and municipalities by the end of 2020, and incineration penetration rate is expected to be over 53%. In addition, pursuant to the "Opinions on Further Strengthening the Incineration of Municipal Solid Waste Treatment", emphases were on better site selection, higher standard for WTE plant construction, effective coordination of project development and tighter administration and control of WTE projects. With the support of such strong policies, we expect the industry will continue to experience stable growth in the next few years."
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Benefiting from strong industry growth and leveraging on strong business development capability, the Group's total number of projects on hand grew from 4 when it was listed to 13 as of today. As at 30 June 2017, the operating, secured, announced and under management agreement daily MSW processing capacity of our 13 projects was 19,240 tonnes, of which 15,490 tonnes were in Guangdong Province, 2,550 tonnes were in the Guangxi Zhuang Autonomous Region and 1,200 tonnes were in Guizhou Province.
The operating daily MSW processing capacity of the Group (including the project under management) increased from 7,600 tonnes to 10,640 tonnes, a handsome growth of 40.0%. Eco-Tech II plant and phase 2 of Xingyi plant commenced operation, while Zhongshan plant was under testing in the first half of 2017. In March 2017, the Group secured the Xinyi WTE plant in Maoming with daily processing capacity of 750 tonnes, further strengthening the Group's position in Guangdong province. Due to the satisfactory performance of phase 1 of Xingyi plant, phase 2 of Xingyi project received approval from the Guizhou Development and Reform Commission to increase the daily processing from 350 tonnes to 500 tonnes.
The Group derived its revenue mainly from power sales, waste treatment fees, construction revenue and finance income from build-operate-transfer ("BOT") agreements. During the Period, revenue from power sales and waste treatment fees was HK$444.2 million, up by 18.3% compared with the corresponding period in 2016. The revenue increment was mainly contributed by construction revenue from additional projects under construction, as well as operating revenue from Eco-Tech II plant and Zhanjiang plant. In addition, the Group implemented innocuous treatment of waste volume amounting to 1,482,607 tonnes, representing an increase of 34.5% as compared with the corresponding period in 2016. The Group generated 608,226,000 kWh from green energy, saving 211,805 tonnes of standard coal and reducing 528,030 tonnes of carbon dioxide emission. The Group is committed to fulfilling its social responsibility and contributing to environmental protection.
Strategic Partnership to Foster Long Term Business Development and Financial PositionThe Group has become a strategic partner of Utrust Investment Holdings Limited ("Utrust Holdings"), a company directly under the People's Government of Guangdong Province and is managed and supported by the Department of Finance of Guangdong Province. By issuing 300 million new shares to Shanghai Industrial Holdings Limited ("SIHL", stock code:363.HK), SIHL has become the second largest shareholder of the Company. By leveraging on the market reach, resources and supports of Utrust Holdings and SIHL, the Group is well positioned to increase its market share in Guangdong province and strategically set to expand its business nationwide.
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In April 2017, IFC exercised its rights to convert outstanding convertible loan of HK$465m into 121 million shares of the Company at HK$3.84 per share, yielding about 4.9% shareholding in Canvest. In addition, AEP, a substantial shareholder of the Company, increased its shareholding to about 5.6% of the total issued share capital of the Company during the Period. The above showed that the current shareholders have confidence in Canvest's management capability, achievement and long term business prospect.
The Group's investor relations efforts continued to receive accolades. For the two consecutive years, the Group had won the title of Overall Best Investor Relations Company and various awards at the HKIRA's Investor Relations Awards - Small Cap. The Group was recognized as an EcoChallenger at the Corporate Environmental Leadership Awards 2016.
Ms. Lee concluded, "We believe increasingly stringent policy and higher standard requirements of the industry are conducive to healthy market development, and can benefit Canvest in the long run. We will continue to capture WTE project opportunities in China, focusing on municipal waste, and exploring relevant new opportunities to continue our journey of success. Building on the growth momentum gathered in the first half of 2017, we will continue our strategy to increase our operational capacity and strengthen our leadership in the WTE market."
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About Canvest Environmental Protection Group Company LimitedCanvest Environmental Protection Group Company Limited is a leading waste-to-energy provider focusing on the development, management and operation of WTE projects. Currently, the Group has 13 WTE projects, 10 of which are located in Guangdong Province, 2 are located in Guangxi Zhuang Autonomous Region, and 1 is located in Guizhou Province. Going forward, Canvest continues to actively pursue business opportunities which are lucrative and commercially viable. The Group was listed on the Main Board of Hong Kong Stock Exchange on 29 December 2014 (stock code: 1381).
Media enquiry: Strategic Financial Relations (China) LimitedEmail: sprg-canvest@sprg.com.hk
Ms Serine Li Tel: (852) 2864 4835
Ms Winnie Lau Tel: (852) 2864 4876
Canvest Environmental Protection Group Co. Ltd. published this content on 16 August 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 16 August 2017 07:11:03 UTC.
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