China Everbright Water reported Wednesday its first quarter net profit increased 16 percent on-year to HK$206.35 million (S$35.97 million or US$26.29 million) as construction revenue increased.
Revenue for the quarter ended 31 March rose 26 percent on-year to HK$1.31 billion on growth in construction revenue, operation revenue and finance income, it said in a filing to SGX.
“The increase in construction revenue was mainly attributable to construction of several water environment treatment projects and the water supply projects in addition to the expansion and upgrading of several waste water treatment plants which were under construction during the first quarter,” the company said.
Operation revenue increased on new projects beginning operation in 2018 and the first quarter of 2019, as well as tariff hikes for several projects, it said.
Finance income rose on increased contract assets due to the recognition of construction revenue for expansion and upgrading projects for several water plants, water supply projects and other water environment treatment projects in the quarter, it said.
The overall gross profit margin fell to 32 percent in the first quarter, down from 35 percent in the year-ago period, mainly due to a slightly larger portion of construction revenue in the total revenue mix, the company said.
China Everbright Water had 14 projects under construction in the quarter, including 10 waste-water treatment projects, two water environment treatment projects and two water supply projects, the filing said. One of the projects completed construction and began operation during the quarter, it said.
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