China Everbright Water H1 profit drops 3.8% as construction service revenue falls

MAINBOARD-LISTED China Everbright Water posted a 3.8 per cent drop in net profit to HK$404.5 million (S$71.7 million) for the six months ended June 30, 2020, from HK$420.5 million a year ago.

This came as revenue and profit were "adversely affected" by a decline in construction service revenue. Temporary measures and restrictions enforced by the local governments in China to control the Covid-19 pandemic during the first half had slowed down the group's construction progress for its projects.

Earnings per share stood at 14.14 Hong Kong cents for the first half, down from 15.51 cents a year ago, according to the environmental protection company's results released on Wednesday.

Revenue for H1 fell 14.7 per cent to HK$2.12 billion, from HK$2.49 billion a year ago, dragged by a fall in revenue from construction services.

Construction service revenue from service concession arrangements fell 38.2 per cent to HK$817.8 million, from HK$1.32 billion a year ago.

An interim dividend of 3.74 Hong Kong cents per share was declared for the first half, unchanged from a year ago. The dividend will be paid on or around Sept 11, after books closure on Aug 27.

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Everbright Water executive director and chief executive An Xuesong said the group saw steady progress in market expansion, project construction, operations management and technological research and development in the first half, achieving stable operating results.

Looking ahead, China Everbright Water will explore the digitalisation of management processes in the water sector to promote an urban water business development model that is led by digitalisation, Mr An said.

Shares of mainboard-listed China Everbright Water were trading flat at 23.5 Singapore cents as at 3.16pm on Wednesday.