550w_everbright water mgmt_28.2.15L-R: CFO Felix Yau, Vice-Chairman & CEO Wang Tianyi, Vice-Chairman David Chen and Standing-President An Xuesong. Photo by Sim Kih

CHINA EVERBRIGHT INTERNATIONAL spun off its environmental water business (China Everbright Water) through a reverse takeover of HanKore Environment on 12 Dec 2014. 

It reported its full-year 2014 results last week. The following are among the key takeaways from the results briefing:

Briefing2.15Everbright Water's briefing last week. Photo by Ngo Yit SungFinancials

1. FY2014 revenue was down 19% to HKD1.1 billion but gross profit (HKD 596.5 million) and margin were higher y-o-y because of a change in revenue mix  -- there was a larger contribution from waste water treatment and lower contribution from construction services.

The gross margin at 56.7% was impressive, rising from 41.0% a year earlier. 

2. The P&L reflects less than one month's business performance of HanKore as the reverse takeover was completed in Dec 2014. Thus, this year will see the full revenue and profit contribution of HanKore added to Everbright Water.

3. Net profit growth was 10% to HKD292.8 million, which would have been higher if not for RTO expenses and HanKore's financing costs, etc.    

China Everbright is seeking to refinance HanKore's projects at a lower cost of capital. 

4. Though the P&L reflected less than one-month's contribution, the balance sheet is that of the entire merged entity as at end-2014.

5. Its gearing dropped from 0.35 to 0.18 and is expected to fall further when a placement exercise (to International Finance Corporation and Dalvey Asset Holding) is completed in the next few months.

You may also be interested in:

You have no rights to post comments

Counter NameLastChange
AEM Holdings3.280-0.020
Avi-Tech Electronics0.250-0.005
Best World1.680-
Broadway Ind0.0920.002
China Sunsine0.3950.005
Delfi Limited1.1300.010
Food Empire1.090-
Fortress Minerals0.3100.010
Geo Energy Res0.280-
GSS Energy0.028-
Hong Leong Finance2.4800.010
Hongkong Land (USD)3.190-
ISDN Holdings0.330-0.005
IX Biopharma0.043-
Jiutian Chemical0.0260.001
KSH Holdings0.290-
Leader Env0.0530.003
Medtecs Intl0.1400.004
Nordic Group0.400-
Oxley Holdings0.100-
REX International0.166-0.002
Sinostar PEC0.135-
Southern Alliance Mining0.670-0.005
Straco Corp.0.470-0.015
Sunpower Group0.240-
The Trendlines0.0910.001
Totm Technologies0.038-
Uni-Asia Group0.905-0.030
Wilmar Intl3.6200.010
Yangzijiang Shipbldg1.4900.040

We have 662 guests and no members online

rss_2 NextInsight - Latest News