China Everbright Environment Group Limited · HKEX:257
China Everbright Environment — China Everbright International — H1 2013 Earnings Presentation
55 slides from China Everbright Environment's earnings presentation, August 2013
Slide 1: 2013 Interim Results Presentation
2013 Interim Results Presentation August 2013 CHINA EVERBRIGHT INTERNATIONAL LIMITED 中國光大國際有限公司
Slide 2: Forward-looking statements
Forward-looking statements This presentation may contain forward-looking statements. Any such forward-looking statements are based on a number of assumptions about the operations of China Everbright International Limited (the “Company”) and factors beyond the Company's control and are subject to sig
Slide 3: Agenda
Agenda Results Highlights Financial Review Energy Conservation and Emission Reduction Business Review Business Overview Corporate Positioning Q&A Appendix – Project Summary 3
Slide 4: Results Highlights
Results Highlights 4
Slide 5: Results Highlights (1)
Results Highlights (1) Continuous growth of recurring operating profit Turnover increased by 78% EBITDA on recurring basis grew 58% Profit from continuing operations increased by 77% Profit attributable to equity shareholders rose to HK$650million, up 7% Interim dividend of HK3.50 cents Continued to
Slide 6: Results Highlights (2)
Results Highlights (2) Outstanding performance in market expansion Secured five new projects and re-launched a biomass power generation project, commanding a total investment of RMB 1.676 billion Introduced integrated hazardous waste treatment projects Strengthened market shares in Shandong, Jiangsu
Slide 7: Results Highlights (3)
Results Highlights (3) Strong financial strength Established cooperation with International Finance Cooperation (IFC) by signing a US$70 million long-term loan agreement Established cooperation with China Development Bank by signing a RMB10 billion cooperation agreement Established close cooperation
Slide 8: Results Highlights (4)
Results Highlights (4) Sustainable increase in operating capacity 49 projects completed construction for commercial operation, contributing an operation service revenue of HK$669 million, an increase of 16% Processed household waste of 2.18 million tonnes, an increase of 24% Generated 744,157,000 kW
Slide 9: Results Highlights (5)
Results Highlights (5) Efficient progress of construction projects 20 projects with a total investment of RMB7.133 billion under construction or in preparatory stages, hitting a record high. This is expected to turn into a key growth driver for the construction service revenue Construction projects
Slide 10: Results Highlight (5) (Cont'd)
Results Highlight (5)(Cont’d) Efficient progress of construction projects Construction of new projects proceeded at a steady pace Nanjing Waste-to-energy Project (Started in October 2012) Ningbo Waste-to-energy Project (Started in November 2012) Pizhou Waste-to-energy Project (Started in March 2013)
Slide 11: Results Highlight (6)
Results Highlight (6) Equipment Manufacturing becomes a new business sector Established a series of product on waste grate furnaces, sludge treatment, leachate treatment and flue gas purification system, etc. Obtained the Changzhou High-tech Product Certificate Integrated with project development an
Slide 12: Results Highlight (7)
Results Highlight (7) Introduction of international advanced technologies Cooperated with German-based company, MARTIN GmbH, for the introduction of incinerator technology Cooperated with Suez Environment Group from France to strengthen environmental management and technology research and developmen
Slide 13: Results Highlight (8)
Results Highlight (8) Developed the “Soft Skills” Integrated the operation of the four management centres namely engineering management centre, technological development centre, operation management centre and equipment manufacturing centre Accomplished the consolidation of domestic business managem
Slide 14: Results Highlight (9)
Results Highlight (9) Rising brand value Selected as constituent stock of the MSCI China Index Obtained “Outstanding Brand Awards 2013” in the “Environmental Protection and Alternative Energy” category from Economic Digest Founded a charitable fund aiming at improving the quality of life for people
Slide 15: Financial Review
Financial Review > 15
Slide 16: Financial Review
Financial Review For the six months ended 30 June (HK$’000) Change 2013 2012 Turnover 2,466,736 1,387,552 78% Gross profit 1,145,719 704,603 63% EBITDA on recurring basis 1,077,957 681,728 58% Profit from continuing 665,794 375,450 77% operations Profit on discontinued operation - 250,096 - 100% Pro
Slide 17: Turnover Analysis of Environmental Protection and Alternative Energy Businesses
Turnover Analysis of Environmental Protection and Alternative Energy Businesses 1H 2012 Environmental Energy (HK$’000) 1,448,963 1H 2012 Environmental Water 0 1,600,000 (0%) 1H 2012 Alternative Energy 1H 2013 Environmental Energy 1,400,000 199,702 (14%) 1H 2013 Environmental Water 1,200,000 1H 2013
Slide 18: EBITDA Analysis of Environmental Protection and Alternative Energy Businesses
EBITDA Analysis of Environmental Protection and Alternative Energy Businesses (HK$’000) 900,000 788,808 1H 2012 750,000 1H 2013 600,000 445,257 450,000 281,402 300,000 200,960 150,000 63% 70% 56,910 59,554 0 29% 25% 8% 5% Environmental Energy Environmental Water Alternative Energy EBITDA of Environm
Slide 19: Profit Attributable to Shareholders
Profit Attributable to Shareholders Profit attributable to shareholders for 1H 2013 increased by 7% to HK$650,204,000 as compared with HK$605,148,000 for 1H 2012 Increase in profit from continuing operations by 77% to HK$665,794,000 Completely offset the profit from discontinued operation of HK$250,
Slide 20: Key Financial Figures
Key Financial Figures As at As at Change 30/06/2013 31/12/2012 Total assets (HK$ ’Mil) 18,300 16,583 10% Total liabilities (HK$ ’Mil) 8,848 7,913 12% Shareholders’ equity (HK$ ’Mil) 9,079 8,350 9% Cash on hand (HK$ ’Mil) 2,846 2,797 2% Current ratio (%) 165 164 1% Gearing ratio (%) 48 48 - (Total li
Slide 21: Energy Conservation and Emission Reduction
Energy Conservation and Emission Reduction 21
Slide 22: Energy Conservation & Emission Reduction (1)
Energy Conservation & Emission Reduction ( 1 ) (tonnes) 1,500,000 CO2 Emission Reduction 1,285,212 1,000,000 911,000 788,828 490,740 500,000 348,926 181,895 34,084 101,968 - 2006 2007 2008 2009 2010 2011 2012 1H2013 (Year) In 1H 2013, the Group generated green electricity of 744.16 million kWh, equi
Slide 23: Energy Conservation & Emission Reduction (2)
Energy Conservation & Emission Reduction ( 2 ) (million kWh) 1,500 Green Electricity Generation 1,308 1,000 776 744 584 482 500 260 157 58 0 2006 2007 2008 2009 2010 2011 2012 1H2013 (Year) In IH 2013, green electricity generated by waste-to-energy, methane-to-energy and biomass power generation pro
Slide 24: Energy Conservation & Emission Reduction (3)
Energy Conservation & Emission Reduction ( 3 ) (tonnes) COD Emission Reduction 192,356 200,000 180,607 166,486 143,686 150,000 134,996 103,996 111,000 100,000 79,292 50,000 28,388 - 2005 2006 2007 2008 2009 2010 2011 2012 1H2013 (Year) In 1H 2013, the Group treated waste water and leachate of 241.77
Slide 25: Business Overview
Business Overview Environmental Energy Environmental Water Alternative Energy Environmental Protection Industrial Park Environmental Protection Equipment Manufacturing Environmental Protection Engineering Environmental Protection Technology 25
Slide 26: Environmental Energy (1)
Environmental Energy ( 1 ) 10 waste-to-energy projects and 3 industrial and hazardous solid waste landfill projects are in operation 12 waste-to-energy projects and 3 hazardous waste landfill project are under construction or in preparatory stage Commanding a total investment of RMB11.26 billion 26
Slide 27: Environmental Energy (2)
Environmental Energy ( 2 ) Designed capacity : annual household waste processing capacity of approximately 7.28 million tonnes (8.43 million tonnes including phase II projects that have not been activated) annual on-grid electricity generation capacity of approximately 2.14 billion kWh annual hazard
Slide 28: Environmental Water (1)
Environmental Water ( 1 ) 17 waste water treatment projects and 3 reusable water projects are in operation 1 waste water treatment project and 1 surface water BT project have completed for transfer 3 waste water treatment projects and 1 reusable water project are under construction or in preparatory
Slide 29: Environmental Water (2)
Environmental Water ( 2 ) Designed capacity: Annual waste water treatment capacity of 668 million m3 Annual reusable water supply of 22.33 million m3 Annual surface water supply of 36.5 million m3 29
Slide 30: Alternative Energy (1)
Alternative Energy ( 1 ) 2 methane-to-energy projects, 8 photovoltaic energy projects, 1 biomass power generation projects and 2 waste water source heat pump projects are in operation 5 biomass power generation projects have been secured 18 individual projects commanding a total investment of RMB2.8
Slide 31: Alternative Energy (2)
Alternative Energy ( 2 ) Designed capacity – annual agricultural waste treatment capacity of 1.643 million tonnes and annual electricity generation of 1.167 billion kWh, of which landfill methane-to-energy: 27 million kWh leachate methane-to-energy: 5.25 million kWh sludge methane-to-energy: 7.3 mil
Slide 32: Environmental Protection Industrial Park
Environmental Protection Industrial Park 7 Environmental Protection Industrial Parks Commanding a total investment of approximately HK$20 billion 32
Slide 33: Environmental Equipment Manufacturing
Environmental Equipment Manufacturing Equipment Manufacturing Centre commenced operation Entered into a new business sector Manufacture of grate furnaces, leachate treatment equipment and flue gas purification equipments etc Suitable for use in the PRC environmental protection market With large numb
Slide 34: Environmental Protection Engineering
Environmental Protection Engineering National High Tech Enterprise Possess the "Main Contractor for Municipal Public Works" License Obtained numerous national and provincial golden or silver awards for quality 20 projects are under construction or in the preparatory stage, commanding a total investm
Slide 35: Environmental Protection Technology
Environmental Protection Technology National High Tech Enterprise Obtained numerous invention and application patents Possess numerous significant R&D results Continue to strengthen the R&D development 35
Slide 36: Corporate Positioning (1)
Corporate Positioning ( 1 ) High Starting Point Wider Horizon Stronger Cohesiveness Full Effort Steady Development Advanced Technology Excellent Quality Better Efficiency 36
Slide 37: Corporate Positioning (2)
Corporate Positioning ( 2 ) To become a business conglomerate which has integrated construction, technology development, equipment manufacturing and operation management To become the leading player in the green environmental protection and alternative energy industries 37
Slide 38: 7eA BIRR
7eA BIRR Everbright International 38
Slide 39: Thank You
7eA BIRR Everbright International Thank You 39
Slide 40: Appendix Project Summary
Appendix Project Summary 40
Slide 41: Environmental Energy (1)
Environmental Energy ( 1 ) Operating Projects: Daily processing Total Investment Project Name capacity (tonnes) (RMB’mil) Suzhou Waste-to-energy Project Phase I 1,050 489 Suzhou Waste-to-energy Project Phase II 1,000 450 Yixing Waste-to-energy Project Phase I 500 238 Jiangyin Waste-to-energy Project
Slide 42: Environmental Energy (2)
Environmental Energy ( 2 ) Projects under construction or in preparatory stage: Daily processing Total Investment Project Name capacity (tonnes) (RMB’mil) Nanjing Waste-to-energy Project 2,000 1,030 Ningbo Beilun Waste-to-energy Project Phase I 1,000 560 Pizhou Waste-to-energy Project Phase I 600 33
Slide 43: Environmental Energy (3)
Environmental Energy ( 3 ) Projects under construction or in preparatory stage: Daily processing Total Investment Project Name capacity (tonnes) (RMB’mil) Sanya Waste-to-energy Project Phase I 700 426 Boluo Waste-to-energy Project Phase I 700 417 Shouguang Waste-to-energy Project Phase I 600 338 Wei
Slide 44: Environmental Energy (4)
Environmental Energy ( 4 ) Hazardous Waste Treatment: Total Investment Project Name Processing capacity (RMB’mil) Suzhou Industrial Solid Waste Landfill Project Phase I 142,000 m3 78 (operating project) Suzhou Industrial Solid Waste Landfill Project Phase II 370,000 m3 40 (operating project) Suqian
Slide 45: Environmental Energy (5)
Environmental Energy ( 5 ) Expansion projects planned in the concession agreements: Project Name Daily processing capacity (tonnes) Ningbo Beilun Waste-to-energy Project Phase II 500 Pizhou Waste-to-energy Project Phase II 400 Sanya Waste-to-energy Project Phase II 350 Boluo Waste-to-energy Project
Slide 46: Environmental Protection Industrial Park
Environmental Protection Industrial Park Investment Expected no. Industrial Park (RMB) of projects Suzhou Everbright National Demonstrative Veinous 3.3 billion >10 Industrial Park Zhenjiang Everbright Environmental Protection 1.5 billion 6–8 Industrial Park Suqian Everbright Environmental Protection
Slide 47: Environmental Water (1)
Environmental Water ( 1 ) Operating Projects: Daily waste water Total investment Project Name treatment capacity (RMB ’mil) (m3) Qingdao Waste Water Treatment Project 220,000 356 (Haibohe Plant & Maidao Plant and upgrade project) Zibo Waste Water Treatment Project 250,000 354 (Southern & Northern Pl
Slide 48: Environmental Water (2)
Environmental Water ( 2 ) Operating Projects: Daily waste water Total investment Project Name treatment capacity (m3) (RMB ’mil) Jiangyin Waste Water Treatment Project 190,000 530 (4 waste water treatment plants and upgrade projects) Jinan Xike Waste Water Treatment Project (Plant 4) 30,000 73 Ling
Slide 49: Environmental Water (3)
Environmental Water ( 3 ) Transferred Project: Total investment Project Name Daily treatment capacity (m3) (RMB ’mil) Daily waste water treatment capacity Xinyi BT Project Phase I 62 10,000 Daily surface water supply Xinyi Surface Water BT Project 385 100,000 Annual waste water treatment: 3,650,000
Slide 50: Environmental Water (4)
Environmental Water ( 4 ) Projects under construction or in preparatory stage: Daily waste water treatment Total investment Project Name capacity (m3) (RMB ’mil) annual reusable water supply: Zibo Reusable Water Project Phase II 11 1,750,000 Licheng Waste Water Treatment Project Phase II 100,000 195
Slide 51: Alternative Energy (1)
Alternative Energy ( 1 ) Operating Projects: Average annual Project Name electricity generation Total investment (RMB ’mil) capacity (kWh) Suzhou Landfill Methane-to-energy Project 18,000,000 28 Phase I Suzhou Landfill Methane-to-energy Project 9,000,000 13 Phase II Included in the investment Qingda
Slide 52: Alternative Energy (2)
Alternative Energy ( 2 ) Operating Projects: Average annual electricity Total investment Project Name generation capacity (kWh) (RMB ’mil) Shenzhen Rooftop Photovoltaic Energy Project 1,480,000 28 Zhenjiang Ground Photovoltaic Energy Project 4,059,000 73 Suqian Rooftop Photovoltaic Energy Project 2,
Slide 53: Alternative Energy (3)
Alternative Energy ( 3 ) Projects under construction or in preparatory stage: Average annual electricity Total investment Project Name generation capacity (kWh) (RMB ’mil) Hanshan Biomass Power Generation Project 184,000,000 320 Xinyi Biomass Power Generation Project 184,000,000 321 Electricity: 172
Slide 54: Alternative Energy (4)
Alternative Energy ( 4 ) Wind Power Projects in preparatory stage: Average annual electricity Total investment Project Name generation capacity (kWh) (RMB ’mil) Muping Wind Power Project 35,000,000 200 Ningwu Zhaojiashan Wind Power Project 101,000,000 432 Ningwu Changfangshan Wind Power Project 98,0
Slide 55: Environmental Equipment Manufacturing
Environmental Equipment Manufacturing Operating project: Year of Commercial Total investment Project Name Operation (RMB ’mil) Changzhou Environmental Protection Sept 2012 89 Equipment Manufacturing Centre Phase I Total 89 55
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