BEWG 2019 Interim Results Announcement 2019-08-28
On 28 Aug 2019, Beijing Enterprises Water Group Limited (“BEWG”) announced our 2019 interim results in Hong Kong. In 2019, BEWG seized the major historical opportunity of building ecological civilization and winning the battle against pollution, supported the transition into light asset model with a dual-platform strategy, proposed technology for operation services, and built a large-scale public utility (water) asset operation management platform; operation serves the brand, creating the world's number one public utility (water) asset operation service brand, and continuously infusing strong impetus into the Group's light-asset transition.
In the first half of the year, BEWG recorded main business revenue HKD 12.83 billion, a year-on-year increase of 28%; net profit attributable to the parent HKD 2.77 billion, a year-on-year increase of 17%. After excluding one-off effects, the current profit increased by 19%; the total assets reached HKD 139.05 billion, a year-on-year increase of about 10%;
In the first half of the year, the newly-awarded and contracted water capacity totaled 2,061,900 tons per day, the operating water capacity reached 22,617,700 tons per day, and the contracted water capacity reached 37,761,600 tons per day; basic earnings per share reached HJD 0.2868, a year-on-year increase of 12%.
In the first half of this year, under the dual pressure of policy adjustment and governance tasks, the exploration of non-PPP models in the water affairs and water environment field has grown rapidly, and the participation and market share of central enterprises and local platforms have increased significantly. On one hand, the market space for the treatment of black and odorous water bodies and the comprehensive treatment of river basins is still broad, especially for the treatment of key river basins represented by the "Yangtze River Greater Protection". There are trillions HKD worth investment needs, so there is a long way to go; on the other hand, there are still many ongoing projects "emphasizing construction and neglecting operation" and "unsystematic and uncoordinated", this contradiction is still outstanding.
Under the background of improving the quality and efficiency of the entire industry, the transformation from the model of "emphasizing construction and neglecting operation" to the model of "large operation and emphasis on effect" will become the general trend, while the enterprises with strong investment and financing capabilities and a highly market-oriented response mechanism, which can provide solutions for the entire industry chain from top-level design to operation and maintenance performance guarantees will become the preferred partners of the government, central enterprises and local platforms.
Facing the new situation, BEWG further clarified the Group's strategic structure, development philosophy and realization path, and clarified that the core of the light-asset strategy is the operation of assets. In order to implement the light asset strategy, we should deploy key tasks systematically to ensure the improvement of operating fundamentals; clued by the year of quality, we will strive to build a “greater operation” management system featuring effective investment-technology-construction-operation-finance synergy, and group-center-regional 3-level linkage. At the same time, in order to fully match the adjustment of strategic objectives, BEWG also focused on customer orientation, business thinking, and results delivery to further implement the Group’s capacity building and organizational optimization of 10 systems.
We should effectively implement the concept of safe development, ensure that the Group's fundamentals continue to improve, and focus on sustainable development. So far, the systematic layout for strategic transformation has gradually achieved results. Among them, we have established a dual-platform cooperation model with Three Gorges Group in cities along the Yangtze River, creating a new model of cooperation, releasing new dividends for cooperation and development; accelerating the construction of smart water affairs, creating a "smart brain", and leading the development of the industry through innovative smart water operation management models; enhance human resources strategy, focus on front-line operators, create a new type of operation team; fully promote the standardization of the Group, focus on source product standards, penetrate construction standards, operation standards, and create a product standard system; focus on the standardization of organization, position, and data, and build a management standard system to provide support for improving operating efficiency.
In the future, BEWG will intensify our light-asset transition, focus on operation model, operation technology and improve service levels, strengthen our “operations” and fully release our new energy in production.
