Everbright Water Announces 2019 Quarterly Results

Financial Summary

Singapore and Hong Kong – May 15, 2019 - China Everbright Water Limited (" Everbright Water" or the "Company", stock listing numbers: U9E.SG and 1857.HK), an environmental protection group whose main business is comprehensive water environment management business, today announced its financial results for the quarter ended March 31, 2019 ("2019 quarter" or "review period") unaudited results.

During the review period, the company recorded revenue of HK$1.313 billion, an increase of 26% compared with the same period in 2018. The increase in revenue was mainly due to the increase in construction revenue, operating revenue and financial revenue; gross profit It increased by 18% from the same period last year to HK$426 million, with an overall gross profit margin of 32%. Profit for the period increased by 11% compared to the same period in 2018 to HK$213 million; profit attributable to the company's equity holders increased by 16% compared with the same period in 2018 to HK$206 million. As of March 31, 2019, the asset-liability ratio was approximately 56.5%, the debt level was reasonable, and the financial position was good.

In the 2019 quarter, Everbright Water continued to steadily consolidate its strategic layout and market position in Shandong Province and Jiangsu Province, and acquired the Jiangsu Zhenjiang Zhengrunzhou Wastewater Treatment Plant ("Zhengrunzhou Water Plant") ) entrusted operation projects and the sludge reduction project of the Licheng Wastewater Treatment Project (Third Plant) in Jinan, Shandong. Among them, the acquisition of the Zhengrunzhou Water Plant entrusted operation project has enabled the company to achieve centralized and unified management and flexible dispatch of each treatment unit and process section of the water plant, which will help improve environmental and economic benefits.

In terms of project construction, Everbright Water had a total of 14 projects under construction during the review period, including 10 sewage treatment projects, 2 water environment treatment projects and The construction work of the two water supply projects is progressing smoothly, and one of the projects was completed and put into operation during the review period.

In terms of operation and management, In the 2019 quarter, a total of 7 sewage treatment plants under the company were approved to increase sewage treatment fees, with the increase ranging from 21% to 56%. .

During the review period, the total size of Everbright Water’s issuance in January 2019The third phase of Panda Bonds worth RMB 700 million marks the company’s completion of the issuance of its first Panda Bond, effectively improving the company’s financing structure and rationally utilizing financial leverage.

The company was successfully listed on the main board of The Stock Exchange of Hong Kong Limited on May 8, 2019, achieving dual listing in Singapore and Hong Kong. The offer price per share was set at HK$2.99. The net proceeds from the offering are approximately HK$252.3 million (assuming the over-allotment option is not exercised). Accessing the capital markets of Xingang and Hong Kong will help the company attract different investors, expand the scope of shareholders, and promote long-term development.

In addition, the company acquired two sewage treatment projects in Shandong Province in April 2019, involving a total investment of approximately RMB 665 million, with a total newly designed daily sewage treatment capacity of RMB 120,000. cubic meter.

In view of the continued downward pressure on the economy and the continued tightening of industry supervision, environmental protection companies will still face challenges. Companies that are able to seize opportunities in this round of industry consolidation and adjustment will have a more favorable development advantage. In the past few months, Everbright Water has made steady progress in business development, project construction, operation management and capital market layout, especially in the capital market. In addition to completing the issuance of Panda Bonds, the company was listed in Hong Kong on May 8 , the successful dual listing in Xingang and Hong Kong will further broaden the shareholder base, and the Hong Kong capital market will also be conducive to the company's fund-raising and operations. In the next step, Everbright Water will continue to increase its technology research and development efforts, extend the technology industry chain, explore new business areas and models, improve the intelligent level and transparency of operation management, explore diversified investment and financing channels, and further enhance its comprehensive strength and industry influence. force to create long-term sustainable results for shareholders.

　(Original title: Everbright Water announces 2019 quarterly results)