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CHINA Everbright Water's first-quarter net profit rose 49 per cent to HK$100.9 million (S$17.3 million) on the back of two water plant expansion projects, the water treatment specialist said on Friday.
Per-share net earnings was 4.1 HK cents for the three months ended March 31. China Everbright Water's shares closed at S$1.065 on Friday before the results were announced.
Revenue jumped 80 per cent to HK$436.3 million as construction revenue increased by HK$111.5 million, chiefly from the expansion of the Boxing and Suzhou water plants.
But the expansion of those plants also led to a HK$61.9 million increase in construction costs, which contributed to a doubling of cost of sales to HK$218.7 million. Gross profit margin slipped to 50 per cent from 55 per cent as a result.
The company said that it expects the water treatment industry to experience "huge market capacity expansion" amid the implementation of environmental protection laws in China.