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HONG KONG, Aug 17, 2009 - (ACN Newswire) - Interchina Holdings Company Limited ("Interchina"/"the Group") (SEHK code: 0202) announced it holds a 70.2% equity interest in a Shanghai A-share company, namely Heilongjiang Interchina Water Treatment Company Limited ("Interchina A-share") (Shanghai Stock Exchange stock code: 600187). Trading in Interchina A-share on the Shanghai Stock Exchange was resumed on 17 April 2009. The market value of the Company's investment made in Interchina A-share is equivalent to approximately HK$0.1 per Interchina's share.
The Chairman of Interchina, Ms. Wing Man Yi said, "Our company is the first and the only Hong Kong listed company, which owns controlling stake in a Shanghai A-share company. We believe we could utilize Interchina A-share as a platform, to raise funds through the Chinese stock markets if necessary, thus seeking more investment opportunities. Interchina possesses two financing platform in both the mainland and Hong Kong, forming coherent strategies, which brings growth impetus to the Company. After years of practice and adjustment, the Company is now paving the way to perfection and demonstrating its outstanding performance in the industry, regardless of the development of the management team or the design and execution of the overall business strategy."
In May 2007, the Company acquired 229,725,000 shares, representing 70.2% equity interest of Interchina A-share, at RMB627,149,000. On 4 August 2009, the closing price and market capitalization of Interchina A-share were RMB$8.1 and RMB$2,650,000,000 respectively.
The Company has seven water treatment projects in China with a daily aggregate treatment capacity of 600,000 tonnes. In 2009, the Company was granted to the right by the Dalada Qi Government to construct and operate a sewage treatment project in Dalada Qi, Ordos City, Inn Mongolia ("Ordos Project"). The daily average processing capacity of the project will be 70,000 tonnes. Upon completion of the construction of the Ordos Project, the Company will have eight water treatment projects in China with a daily aggregate treatment capacity of 670,000 tonnes. Interchina A-share currently owns two water supply projects in Shaanxi Province and one sewage treatment project in Qinghai Province, with average daily aggregate processing capacity of 280,000 tonnes.
During the year ended 31 March 2009, total revenue of environmental protection and water treatment operation amounted to HK$81,479,000, an increase of 14% comparing with the same period in 2008. However, since the completion of acquisition of Interchina A-share in December 2008, the Company can only share 3 months revenue of Interchina A-share which amounted of HK$20,483,000.
"We have a unique water treatment operation model with a complete water treatment industry chain, including raw water, water supply, water conservation, water discharge, sewage treatment and recycle. We are currently the only listed water treatment operation listed company possessing a complete water treatment value chain. All BOT projects are self-built for containment of cost, while other operating projects are self-managed for higher operating efficiency. We are a private enterprise that demonstrates the competitive edges, such as investment analysis, technical know-how and project management. All projects are carefully selected with an internal rate of return of 12%," Ms. Wing Man Yi continued.
The Company positions itself as a total environmental water solution provider, where North East, North Central, and North West are the three focused development areas. Since the integration of water supply and sewage treatment has become the trend, municipal customers will become the new growth momentum of Interchina other than the industrial customers. Aside from providing water solution to major target industries, such as petro-chemicals, power-generating, pulp and paper, and pharmaceutical, the Company also explores water supply and sewage treatment business in important cities in the mainland.
The Chairman of Interchina, Ms. Wing Man Yi concluded, "We believe Interchina A-share will be a major and stable source of revenue of the Company and the profit contribution from its operations will grow steadily. The company's target operating capacity of water business will be up to 10,000,000 tonnes per day in the future. Looking forward, we will leverage on the A-share financing platform and the competitive edge of water treatment industry chain, to focus on water-oriented environmental investment and operation, to further enlarge the business development scale and to raise the profit level of the water investment projects, in which municipal and industrial customers will be the focused clientele in the provision of total water solution. On the other hand, rapid development of the construction in the cities and towns of China allows us to realize the value of the rare water sources in each region, thus enlarge the market network. Upward adjustment in water prices hearings were taken place in major cities, such as Shanghai, Tianjin, Shenyang, Guangzhou, Nanjing. The upward adjustment will provide impetus to the growth in the revenue stream of the Company, which is beneficial to the development of Interchina in the long run. Given our competitive advantages and expertise in environmental protection and water treatment operation, and the favourable government policies on the industry, we are confident to become the largest total water environmental solution provider in China."
Contact:
JOVIAN Financial Communications Ltd
Angel Y Y Yeung / Jacqueline Fong
tel：(852) 2581 0168
fax：(852) 2854 2012
email：angel.yeung@joviancomm.com/
email: jacqueline.fong@joviancomm.com
Topic: Corporate Announcement
Source: Interchina Holdings
Sectors: Daily Finance, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network
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