【Highlight】The Performance of BEWG in 2018 Are Released, and Initial Success in Transition to Asset-light Is Achieved! 2019-03-27
On March 27, Beijing Enterprises Water Group Limited (hereinafter referred to as “BEWG”) held its 2018 annual performance conference in Hong Kong. Li Yongcheng, Vice Chairman of Beijing Enterprises Group Company Limited and Chairman of the Board of Directors of BEWG, Zhou Min, Executive Director and CEO of BEWG, Li Li, Executive Director and CEO, Li Haifeng, Executive Director and Vice President, Dong Huanzhang, Executive Director, Chief Financial Officer and other managers attended the press conference, and communicated with the investors and reporters attending the conference.
A series of key data on the company’s performance was disclosed on the press conference. In the past year, under the correct leadership of the board of directors and the joint efforts of all employees, BEWG has developed steadily and achieved fruitful results.
In 2018, BEWG achieved main business income of HK$ 24.597, with a year-on-year increase of 16.07%; achieved net profits attributable to parent company of HK$4.471 billion, with a year-on-year increase of 20.29%, after the non-recurring profit and loss was excluded, the profits from current operations increased by 22%. The growth of net profits attributable to the parent company is higher than the growth of main business income, which once again shows that initial success was achieved in transition to the asset-light model of the Group. The total assets reached HK$126.38 billion, with an increase of about 26% over the end of last year; the basic earnings per share for the full year of 2018 were 47.91 HK cents, with a year-on-year growth of 12.94%.
The board of directors of BEWG recommended that an end-of-period distribution of 8.3 HK cents per share should be made to the shareholders to repay their support for the company all the time. The dividends distributed for the year was 17.8 HK cents, accounting for 37% of the basic earnings per share attributable to shareholders of 47.91 HK cents.
Li Yongcheng, Chairman of the Board of Directors of BEWG, said at the press conference that, in the past year, higher requirements for professional technology and standardized management have been put forward at both the national policy level and the industry supervision level; in the “cold winter” of the industry, BEWG has moved forward steadily, actively deployed, and made breakthroughs in financing innovation, business cooperation, and acquisition of large projects, especially remarkable progress has been made in the cooperation with the China Three Gorges Corporation. The Group’s business layout along the Yangtze River has begun to take shape, in the future, BEWG will give full play to its own technical and management advantages to contribute more to the protection of the Yangtze River.
Zhou Min, CEO of BEWG, said that the Group officially proposed the dual platform strategy in 2018 to clarify the transition to an asset-light enterprise; supported by ecological strategy and innovation strategy, the Group strengthened the ten capability systems of technology, construction, operation management, finance and finance, etc. By building an asset management platform and an operation management platform, upgraded the four-wheel drive of “investment + technology + talents + data”, promoted smart water affairs, and took multiple measures to better support the development of the ten major businesses and persevere in improving cash flow.
Zhou Min also explained the comprehensive cooperation between BEWG and the China Three Gorges Corporation. He said that the all-round cooperation between BEWG and the China Three Gorges Corporation aims to implement the major decisions and related deployments of the Party Central Committee to promote the development of the Yangtze River Economic Belt and fully protect the Yangtze River. The cooperation between the two parties will focus on six directions including equity, funds, business, dual platform, research and industry alliance. Currently, the two parties have selected the pilot cities along the Yangtze River in a targeted manner, and adopted the “dual platform model” of asset management and operation management to promote their cooperation. The advantages of the two complement each other, which will produce an effect of 1+1 greater than 2.
At the press conference, Li Li, CEO of BEWG, said that China’s ecological environmental protection work has been placed in an unprecedented important position, and investment in core water control highlands is heating up, which leads us to seek opportunities in the “three areas and two belts” and strive to make breakthroughs. The so-called “three areas” refer to the Yangtze River Delta, the Pearl River Delta and the Beijing-Tianjin-Hebei region, and the “two belts” include the Belt and Road, and the Yangtze River Economic Belt. On the Yangtze River Economic Belt, working with the China Three Gorges Corporation to promote the protection of the Yangtze River will bring us great historical opportunities. Through whole-hearted cooperation, systematic solutions and a new model and mechanism that can be promoted and sustainable can be formed.
According to the announcement of BEWG, in terms of water business, the total design capacity of new projects in 2018 was 5.757 million tons per day. The PPP project of sewage sludge treatment in Qinhuangdao City is currently the largest project with the largest amount of PPP investment in the China’s stock drainage facility assets, and is also another powerful measure to implement the coordinated development strategy of Beijing-Tianjin-Hebei Region.
In terms of water environment governance business, BEWG focuses on key cities to deepen ecological cooperation. In view of the Group’s outstanding performance in the Heshan project, the local government highly recognized the professional competence and technical capabilities of BEWG. The Group successfully signed the Phase II comprehensive improvement project of Shaping River in Heshan, which is an EPC+O model, with no need to be funded by the Group for construction, and which is a natural asset-light project.
In the emerging business field, strategic integration of hazardous waste treatment and sanitation operation business was completed with respect to the urban resources business, and all businesses are developing steadily; wind and photovoltaic business were merged with respect to the clean energy business , with steady growth of the installed capacity; the overseas business is further expanded to Australia and New Zealand through the acquisition of Australian water service provider TRILITY Group Pty Ltd; aerobic granular sludge technology of the DHV company in Dutch was introduced in terms of industrial environmental protection, high-quality resources were introduced in the construction field, and the whole industry chain from the application of upstream technology design to downstream construction was opened up.In 2019, the Group will make every effort to promote the construction of ecological civilization, practice the national green development concept, and deploy the key business areas such as the Beijing-Tianjin-Hebei Region, the Yangtze River Economic Belt, the Guangdong-Hong Kong-Macao Greater Bay Area, the Belt and Road Initiative, etc. to keep pace with the country and the times, and shift from high-speed development to high-quality development.
The Group will further give full play to a wide range of differentiation advantages, seek new impetus to stimulate and promote the development of the enterprise, and release new dividends in its profit model; for traditional water projects with scale attributes, the Group will develop smart business to create standardized products for water plant; enable technology for the whole life cycle of the project, support high-quality development, and build the core technology engine; strengthen ecological cooperation inside and outside the industry, achieve win-win results for multiple parties, and build a good ecosystem for enterprise development; deepen cooperation with the China Three Gorges Corporation, and expand the city-level project group in the Yangtze River Economic Belt by taking advantage of the combination of investment and technology. The Group will create a world-class professional technical service system through technological innovation, business model innovation and management innovation, etc. to promote the development of the industry towards higher quality, higher efficiency, and larger scale, and realize the great vision of a beautiful China.
More
-
BEWG Has Ranked First Among the Top Ten Influential Companies in China’s Water Industry for 9 Consecutive Years!
-
Cooperation Upgraded! Further Work Together to Protect the Yangtze River
-
Stride Forward for an Environmentally Outstanding Enterprise, the Deployment of the Technology System is “Hardcore” Enough!
