Asia Water Technology steigert Gewinn um +34,2 % auf 21 Mio. RMB
Asia Water's Net Profit Surged 34.2% to RMB21.0 million
Revenue Increased 7.3% to RMB171.1 million
SINGAPORE - 7 August 2006 - Sesdaq-listed Asia Water Technology Ltd. (Nachrichten) ('Asia Water' or 'The Company') (亚洲水务有限公司), a water purification and wastewater treatment specialist, today reported a 34.2% surge in net profit to RMB21.0 million for the financial year ended 30 June 2006, from RMB15.7 million in
HY2005.
Group revenue for the half year ended 30 June 2006 increased by 7.3% to RMB171.1 million from RMB159.5 million previously. Revenue for water purification treatment segment rose by RMB13.0 million or 12.1% whereas the wastewater treatment segment increased from RMB45.0 million in the prior period to RMB45.8 million, as 2 major wastewater projects were substantially completed in HY06.
Overall, water purification remained the major contributor, accounting 70.0% of the Group's total revenue, while the wastewater treatment and other businesses constituted 26.7% and 3.2% respectively. Revenue from other businesses decreased by 28.0% to RMB5.5 million, mainly due to the decrease in number of desulphurization control system projects worked on, as well as sale of water treatment equipments to third parties.
The Group expects to expand into both the wastewater treatment and water purification treatment segment. In May 2006, the Company secured an 80% stake in a BOT Industrial Wastewater Project in Zhejiang province, which is one of the richer eastern coastal provinces in China. 'With continuous potential in the water treatment sector in the PRC, our Group will continue to tender for more water purification and wastewater projects. Tapping on the proceeds from the 2 placements exercise, we will invest and expand our presence in municipal water treatment plants', commented Mr Huang Hanguang (黄汉光), Chief Executive Officer of Asia Water.
Gross profit decreased slightly by 1.4% as a result of the Group venturing into larger scale municipal and industrial projects which yield lower margins compared to traditional powerplant water purification treatment projects. Administrative expenses decreased approximately 48.0% due to a RMB4 million exchange gain on revaluation on loans whereas selling and distribution expenses decreased by approximately 29.2% to RMB3.7million for HY06. Increase in Cash and Cash Equivalents
An increase in cash and bank balances of RMB107.0 million was mainly contributed by RMB72 million raised from the 2 placements in HY06 and a positive turn-a-round in cash flows from operating activities of RMB37.5 million. There were no significant cash outflows for acquisition of new entities, fixed assets or tangibles. The Group's purchase of the remaining 9.6% of a subsidiary was fully satisfied through the issue of shares.
Business Prospects
The rapid economic development and industrialisation have further escalated the already acute water and power shortage problems in the PRC. Coupled with strong support from the PRC government, the Directors are optimistic about the future prospects of the Company.
According to the PRC's 10th Five-Year Plan, which includes initiatives to allocate more funding for water pollution control to raise the national wastewater treatment rate to above 60% in all cities by 2010 as well as various initiatives to combat the problem of water and power shortage, the Company can look forward to more business opportunities in the future.
'With heightened awareness and increased emphasis on environmental protection and control issues in the PRC, Asia Water is confident of capitalising on its technical expertise and market position to expand its market share in existing business segments. In addition, we have also acquired the remaining 9.6% of our current subsidiary, Wuhan Kaidi water services Co., Ltd. and is well-poised to propel the Company's business to greater heights,' Mr Huang added. 'Wuhan Hanxi wastewater treatment plant has been substantially completed. Our ability to successfully complete a 400,000 tonnes (treatment capacity), which is the largest wastewater treatment plant in central China, is testimonial of our technical capability. The concluded Plan 863 research project on a wastewater treatment study futhers enhanced our technological edge.'
Moving forward, the Group will continue to expand its water purification treatment business and tender for more large-scale municipal wastewater treatment projects. It will also capitalise on the experience acquired from its first nuclear power plant project and continue to tender for and nurture its business in that arena.
Barring any unforeseen circumstances, the Group expects its business in the PRC to continue growing.
About Asia Water Technology Ltd.
Asia Water Technology Ltd. is a Singapore company engaged in the total engineering solutions for water purification and wastewater treatment systems. Its business is primarily conducted through its subsidiary in the PRC, Wuhan Kaidi Water Services Co., Ltd. ('Kaidi Water'), which was incorporated in 1996. Kaidi Water owns its own patented core technologies and works closely with leading technology partners in the international and local water treatment arena. Designed primarily for use by power plants, the water purification systems are required at two main stages of the power generation process. At the initial 'Boiler Make-up Water Treatment' stage, water from outside sources is treated with either one or a combination of the Deionisation and Membrane Technology to become ultrapure water for use in the boilers. The 'Condensate Water Treatment Stage' treats condensated water before re-introduction to the boilers for reuse.
Since 1996, Asia Water has completed more than 200 water treatment projects for power plants and has also secured the project for China's largest power plant which has a capacity of 4x 1,000 MW.
In June 2004, together with three other partners, Asia Water secured the Hanxi Project and obtained a licence to build and operate a municipal wastewater treatment plant in the west of Han Kou, Hubei Province. Another RMB193 million was further awarded to the Company in May 2005 for the procurement, installation and commissioning of the wastewater treatment system for the plant. The Group further secured two tapwater contracts worth RMB111.7 million and acquired a 100% stake in a tapwater plant in Auhui Province, PRC with a treatment capacity of 10,000 tonnes per day.
The Company successfully expanded into the global market and clinched its first overseas water treatment project for the Kogan Creek Power Plant in Queensland, Australia in May 2005. Asia Water's strong technological expertise further enabled it to venture into the niche market of nuclear power plants water treatment and to obtain an RMB18.6 million contract in Shenzhen.
In May 2006, the Company announced the acceptance of its RMB8 million wastewater treatment research project by the People's Republic of China's (PRC) Ministry of Science&Technology. The successful project titled 'Bio-treatment - Research and Commericalisation of Dynamic Cyclic Active Sludge Technology' ('Technology') has been endorsed and accepted under the prestigious National High-Technology Research and Development (Plan 863) Program. Asia Water was one of the only two water treatment companies in the PRC to have been awarded such a grant. Asia Water plans to patent this technology and apply it in future municipal projects.
With strong technical expertise and a solid track record, Kaidi Water has obtained certificates for being a preferred supplier of water treatment systems for power plants with capacity of 200 MW, 300 MW and 600 MW. Its stringent standards for quality control have also earned it the ISO9001:2000 certification.
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