Xinglu Water Announces 2018 Annual Results

Friday, 29 March 2019, 19:24 HKT/SGT

Steady Rises in Revenue and Profit, With Profit Reaching RMB167.2 Million and Final Dividends of RMB0.06 Per Share (Tax Inclusive)

HONG KONG, Mar 29, 2019 - (ACN Newswire) - Luzhou Xinglu Water (Group) Co., Ltd.* ("Xinglu Water" or the "Company", stock code: 2281) announced the audited consolidated results for the year ended 31 December 2018 (the "Reporting Period"). During the Reporting Period, the Company posted revenue of RMB1,218 million, up 12.6% year-on-year; profit of RMB167 million, up 17.2% year-on-year; profit attributable to owners of the Company of RMB154 million, up 17.4% year-on-year; basic earnings per share of RMB0.18, up 12.5% year-on-year. The Company proposed the payment of final dividends of RMB0.06 per share (tax inclusive).

Focus on water supply business with continued growth in revenue

Revenue generated from sales of tap water increased by 13.6% year-on-year to approximately RMB235.6 million; revenue from waste water operating services amounted to approximately RMB194.1 million, representing an increase of 27.9% over last year.

On 21 September 2018, the Company acquired 60% equity interest in Qingxi Water for a total consideration of RMB37.57 million, and acquired 60% equity interest in Weiyuan Installation Company for a total consideration of RMB17.59 million. After the completion of such equity transfers, two companies became the non-wholly owned subsidiaries of the Company. The Company successfully achieved cross-regional business expansion.

As at the end of the Reporting Period, the total sales of water amounted to approximately 111.2 million tons, representing an increase of 17.1%, mainly due to the expansion of the city, the launch of the project of "all areas water supply" and "service sector moving" and the business expansion brought by the acquisition of Qingxi Water. The total wastewater treatment capacity amounted to approximately 87.3 million tons, representing an increase of 44.8%, mainly attributable to the improvement of the wastewater treatment capacity of the Company.

Implement intelligent water treatment and facilitate innovative management

Xinglu Water strengthened management and improved internal control. A standard production management model and monitoring system was established by optimizing production process and integrating production elements. Besides, the Company vigorously executed talent cultivation strategy and dual career pathways mechanism for talents, while innovating management and implementing intelligent water treatment. With the help of technology, it actively promoted automatic monitoring and DMA measurement by areas to enhance the management of the Company. Attaching importance to technology research and development and application, the Company also launched trials on wastewater treatment ARES process and tripoli technology in order to reduce costs and increase efficiency.

Follow national strategy to grasp development opportunities

As the biggest water service provider in Luzhou Area, with development opportunities in water industry, in 2019, Xinglu Water will define its strategic position as "standing firm in the primary business of water supply, stretching its business in the industry chair expanding and the environment protection business, and building the core technology". Highlighting the primary business while expanding multiple business, the Company will uphold the mission of innovation, strength internal control management, uplift the professional operation capability improve overall profitability and maintain sustainable development ability.

Mr. Zhang Qi, Chairman of the Board of Xinglu Water, said: "Xinglu Water will achieve diversified development by following China's environment protection strategies and rural revitalization strategies, focusing on comprehensive sewage treatment model in towns and villages; adopt the way of 'using reserves to bring improvement and using key points to lead all areas' to realize a deep and excellent development of business in different areas; make breakthroughs in the traditional industry development approaches, actively form a cooperative community with the cooperative partners and start deep cooperate on the installation, design, project construction, etc. to integrate the resources and expand the Company's industry chain; step foot in the environmental protection industry regarding starting treatment works on the black odor water and water environment; conduct technology innovations, continuing to conduct research and expansion on intelligence water, water environment treatment and other environment technology, thereby promoting the high-speed and high-quality development of the Company and enabling the Company to become the "most trust-worthy comprehensive water resources service provider'."

Topic: Press release summary Sectors: Daily Finance, Daily News
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