17-02-2014, 06:52 PM
2Q'2014 Press Release
2Q'2014 Results Announcement
Excerpts
HanKore’s 1HFY2014 net profit increases 63% to RMB59.8 million on a 126% revenue increase to RMB332 million
Higher revenue achieved through its recurring water treatment income, topped with higher construction and new contract revenue
Group expects boost in recurring income through higher water treatment capacity and higher water discharge fees from completed EPC projects
Outlook
First phase of Sanmenxia project and second phase and upgrading work of Yangzhou and Nanjing Liuhe plants have been completed as of 31 December 2013. These projects are currently in the commissioning stage and will contribute positively in the second half of FY2014.
On 30 December 2013, the Group has entered into a framework agreement with China Everbright International (“CEI”) to acquire all of CEI’s water treatment assets. Total consideration of the acquisition will be satisified by the allotment and issue of new shares. After the completion of the acquisition, CEI will become the controlling shareholder of HanKore. The holding company of CEI, China Everbright Group is one of the four state-owned enterprises that operates directly under the state council of China. CEI is mainly involved in the development of environment protection business. Its core business sectors include waste-to-energy, alternative energy and environmental water, where water treatment projects make up around 25% of CEI’s revenue.
Mr. Chen added, “We see this potential alliance as a strategic step to improve market penetration and competitiveness in China’s rapidly growing water treatment sector. Given that the water industry in China is a highly capital intensive industry, the water asset injection from CEI will place us in a more favorable position to compete with other water players and clinch more wastewater treatment projects to further reinforce our recurring income streams.”
Results look good and awaiting for more information with regards to the RTO. Share price closed today 17/02/2014 at 0.121 with total vol at 307,673 lots
2Q'2014 Results Announcement
Excerpts
HanKore’s 1HFY2014 net profit increases 63% to RMB59.8 million on a 126% revenue increase to RMB332 million
Higher revenue achieved through its recurring water treatment income, topped with higher construction and new contract revenue
Group expects boost in recurring income through higher water treatment capacity and higher water discharge fees from completed EPC projects
Outlook
First phase of Sanmenxia project and second phase and upgrading work of Yangzhou and Nanjing Liuhe plants have been completed as of 31 December 2013. These projects are currently in the commissioning stage and will contribute positively in the second half of FY2014.
On 30 December 2013, the Group has entered into a framework agreement with China Everbright International (“CEI”) to acquire all of CEI’s water treatment assets. Total consideration of the acquisition will be satisified by the allotment and issue of new shares. After the completion of the acquisition, CEI will become the controlling shareholder of HanKore. The holding company of CEI, China Everbright Group is one of the four state-owned enterprises that operates directly under the state council of China. CEI is mainly involved in the development of environment protection business. Its core business sectors include waste-to-energy, alternative energy and environmental water, where water treatment projects make up around 25% of CEI’s revenue.
Mr. Chen added, “We see this potential alliance as a strategic step to improve market penetration and competitiveness in China’s rapidly growing water treatment sector. Given that the water industry in China is a highly capital intensive industry, the water asset injection from CEI will place us in a more favorable position to compete with other water players and clinch more wastewater treatment projects to further reinforce our recurring income streams.”
Results look good and awaiting for more information with regards to the RTO. Share price closed today 17/02/2014 at 0.121 with total vol at 307,673 lots