China Everbright Water reported on Wednesday its 2018 net profit increased 32 percent on-year to HK$676.46 million (S$116.50 million or US$86.18 million) amid higher construction revenue.
Revenue for the full year was up 33 percent at HK$4.77 billion on higher construction, operation and finance revenue, the company said in a filing to SGX after the market close on Wednesday.
Construction revenue was HK$698.92 million higher for the year, it said.
“The increase in construction revenue was mainly attributable to construction of the sponge city project and the water supply projects, in addition to the expansion and upgrading of several waste water treatment projects which were under construction during FY2018,” it said in the filing.
Operation revenue increased by HK$358.26 million on-year on operations beginning at new projects during the year, tariff hikes for several projects and a one-off boost from tariff adjustment at two waste-water treatment projects, it said.
Finance income was up by HK$119.51 million on-year on increased service concession financial receivables, it said.
China Everbright Water said during the year it obtained 15 new projects and signed four supplementary agreements for existing projects in Shandong, Jiangsu and Liaoning provinces.
It declared a final dividend of 0.50 Singapore cent, up from 0.49 Singapore cent a year earlier.
In its outlook, the company pointed to positives from China’s efforts to protect the environment, with new regulations and inspections as well as concrete goals to be reached by 2020.
“All these policies and regulatory trends provide clearer directions and more stringent regulatory guidance for future industry growth, from the water environment management sector to the environmental protection industry in general,” China Everbright Water said. “The group believes that the water environment management sector will continue its rapid growth.”