中國水務集團有限公司
China Water Affairs Group Limited
Stock code : 855
Annual Report
2024
* For identication purposes only
Annual Report 2024 China Water Affairs Group Limited | 1 |
Contents
Pages | |
Corporate Information | 2 |
Financial Highlights | 4 |
Chairman's Statement | 9 |
Directors' and Senior Management Biographical Details | 16 |
Corporate Governance Report | 20 |
Directors' Report | 31 |
Independent Auditor's Report | 42 |
Consolidated Income Statement | 50 |
Consolidated Statement of Comprehensive Income | 51 |
Consolidated Statement of Financial Position | 52 |
Consolidated Statement of Changes in Equity | 54 |
Consolidated Statement of Cash Flows | 56 |
Notes to the Consolidated Financial Statements | 59 |
Particulars of Properties Held for Investment | 165 |
Particulars of Properties Held under Development | 166 |
Particulars of Properties Held for Sale | 167 |
Five-Year Financial Summary | 168 |
2 | China Water Affairs Group Limited | Annual Report 2024 |
Corporate Information
BOARD OF DIRECTORS
Executive
Mr. Duan Chuan Liang (Chairman)
Ms. Ding Bin
Mr. Li Zhong
Mr. Duan Jerry Linnan
Non-executive
Mr. Makoto Inoue
Ms. Wang Xiaoqin
Ms. Liu Yu Jie (re-designated to non-executive director with effect from 12 April 2023)
Mr. Zhao Hai Hu (resigned on 8 March 2024)
Independent Non-executive
Mr. Chau Kam Wing
Mr. Siu Chi Ming
Ms. Ho Ping
Ms. Zhou Nan
AUDIT COMMITTEE
Mr. Chau Kam Wing (Chairman of committee) Mr. Siu Chi Ming
Ms. Ho Ping
Ms. Zhou Nan
REMUNERATION COMMITTEE
Mr. Chau Kam Wing (Chairman of committee) Mr. Siu Chi Ming
Ms. Ho Ping
Ms. Zhou Nan
NOMINATION COMMITTEE
Mr. Duan Chuan Liang (Chairman of committee) Mr. Chau Kam Wing
Mr. Siu Chi Ming Ms. Ho Ping
COMPANY SECRETARY
Mr. Lie Chi Wing, FCCA, CPA, CFA
AUTHORISED REPRESENTATIVES
Mr. Duan Chuan Liang
Mr. Lie Chi Wing
REGISTERED OFFICE
Clarendon House
2 Church Street
Hamilton HM11
Bermuda
HEAD OFFICE AND PRINCIPAL PLACE OF BUSINESS
Suite 6408, 64/F
Central Plaza
18 Harbour Road
Wanchai
Hong Kong
HONG KONG BRANCH SHARE REGISTRAR
Tricor Tengis Limited
17/F, Far East Finance Centre
16 Harcourt Road, Admiralty
Hong Kong
LEGAL ADVISERS
As to Bermuda law
Conyers Dill & Pearman
AUDITOR
PricewaterhouseCoopers
Certified Public Accountants
Registered Public Interest Entity Auditor
PRINCIPAL BANKER
Agricultural Bank of China
Asian Development Bank
Bank of Communications (Hong Kong) Limited
Bank of East Asia
China CITIC Bank
WEBSITE
http://www.chinawatergroup.com
STOCK CODE
855
Annual Report 2024 China Water Affairs Group Limited | 3 |
Corporate Information
City water supply business
- Serving an estimated population of more than 30 million people
- Water pipelines over 149,000 km
Pipeline direct drinking water supply business
- Serving an estimated population over 8.3 million people
Environmental protection business Sewage treatment operation and construction (including water environmental
renovation construction projects)
Drainage operation
Inner Mongolia
Xinjiang
Liaoning
Gansu | Beijing | ||||
Tianjin | |||||
Ningxia | Shanxi | Hebei | |||
Qinghai | Shandong | ||||
Shaanxi | Henan | Jiangsu | |||
Tibet | Sichuan | Hubei | Anhui | Shanghai | |
Chongqing | |||||
Hunan | Jiangxi | Zhejiang | |||
Guizhou | Fujian | ||||
Heilongjiang
Jilin
Yunnan | Guangxi Guangdong |
Hainan
4 China Water Affairs Group Limited Annual Report 2024
Financial Highlights
2024 | 2023 | ||
HK$'000 | HK$'000 | Change | |
RESULTS HIGHLIGHTS | |||
Revenue | 12,858,515 | 14,194,953 | -9.4% |
Gross profit | 4,775,964 | 5,346,297 | -10.7% |
Profit for the year | 2,591,357 | 3,088,345 | -16.1% |
Profit for the year attributable to owners of the Company | 1,533,543 | 1,856,786 | -17.4% |
Basic earnings per share (HK$) | 0.94 | 1.14 | -17.5% |
Diluted earnings per share (HK$) | 0.94 | 1.14 | -17.5% |
Total dividend per share (HK cents) | 28 | 34 | -17.6% |
- Interim dividend (HK cents) | 13 | 16 | -18.8% |
- Final dividend (HK cents) | 15 | 18 | -16.7% |
2024 | 2023 | ||
HK$'000 | HK$'000 | Change | |
BALANCE SHEET HIGHLIGHTS AND RATIOS | |||
Total assets | 63,242,070 | 61,164,288 | 3.4% |
Total liabilities | 41,789,528 | 39,992,154 | 4.5% |
Net assets | 21,452,542 | 21,172,134 | 1.3% |
Net assets per share1 | 7.83 | 7.96 | -1.6% |
Current ratio | 0.81 | 0.84 | -3.6% |
Gearing ratio2 | 66.1% | 65.4% | |
- Net assets per share = Equity attributable to owners of the Company/Number of issued shares at year end
- Gearing ratio = Total liabilities/Total assets
Annual Report 2024 China Water Affairs Group Limited | 5 |
The Group's total revenue and profit for the year:
Total revenue (HK$ million)
21,000 | Decrease | 4,200 | |||
18,000 | -9.4% | 3,600 | |||
15,000 | 14,195.0 | 12,858.5 | 3,000 | ||
12,000 | 2,400 | ||||
9,000 | 1,800 | ||||
6,000 | 1,200 | ||||
3,000 | 600 | ||||
0 | 0 | ||||
2023 | 2024 |
Financial Highlights
Total profit (HK$ million)
Decrease
-16.1%
3,088.3
2,591.4
2023 2024
9.9% | 19.4% | 8.3% | 13.9% | ||||||||
1,409.9 | 2,745.8 | 1,071.5 | 1,788.7 | ||||||||
13.4% | |||||||||||
9.2% | 1,721.9 | ||||||||||
Total | 1,310.1 | Total | |||||||||
61.5% | 14,195.0 | 64.4% | 12,858.5 | ||||||||
8,729.2 | 8,276.4 | ||||||||||
2023 | 2024 | ||||||||||
City water supply business | Pipeline direct drinking water supply business | ||||||||||
Environmental protection business | Main contractor construction and others | ||||||||||
Total segment profit (HK$ million) | Total segment profit (HK$ million) |
10.0%
468.4
Total
60.6% 4,677.7
2,836.4
2023
18.6% | 8.6% | 16.2% | ||||||
868.6 | 354.2 | 662.1 | ||||||
10.8% | 14.4% | |||||||
504.3 | Total | 591.7 | ||||||
60.8% | 4,098.2 | |||||||
2,490.2 | ||||||||
2024 | ||||||||
City water supply business | Pipeline direct drinking water supply business |
Environmental protection business | Main contractor construction and others |
6 | China Water Affairs Group Limited | Annual Report 2024 |
Financial Highlights
1. City Water Supply Business Analysis Revenue (HK$ million)
15,000 | Decrease | 4,800 | ||||
13,500 | -5.2% | 4,200 | ||||
12,000 | ||||||
3,600 | ||||||
10,500 | ||||||
3,000 | ||||||
9,000 | 8,729.2 | 8,276.4 | ||||
7,500 | 2,400 | |||||
6,000 | 1,800 | |||||
4,500 | ||||||
1,200 | ||||||
3,000 | ||||||
600 | ||||||
1,500 | ||||||
0 | 0 | |||||
2023 | 2024 |
Profit (HK$ million)
Decrease
-12.2%
2,836.4
2,490.2
2023 2024
Revenue by nature (HK$ million) | Revenue by nature (HK$ million) |
40.2% | 19.5% | 39.7% | ||||||
3,506.4 | 1,700.2 | 3,286.4 | ||||||
Total | ||||||||
8,729.2 | ||||||||
1.9% | 38.4% | 1.6% | ||||||
3,353.8 | ||||||||
168.8 | 2023 | 131.5 | ||||||
18.7%
1,547.8
Total
8,276.4
40.0%
3,310.7
2024
City water supply operations | City water supply installation and maintenance services | City water supply construction services | Others |
Annual Report 2024 China Water Affairs Group Limited | 7 |
Financial Highlights
2. Pipeline Direct Drinking Water Supply Business Analysis
Revenue (HK$ million) | Profit (HK$ million) | ||||||||
2,000 | Increase | 900 | |||||||
1,800 | 31.4% | 800 | Increase | ||||||
1,600 | 1,721.9 | 700 | 17.3% | ||||||
1,400 | 1,310.1 | 600 | 591.7 | ||||||
1,200 | |||||||||
500 | 504.3 | ||||||||
1,000 | |||||||||
400 | |||||||||
800 | |||||||||
300 | |||||||||
600 | |||||||||
200 | |||||||||
400 | |||||||||
200 | 100 | ||||||||
0 | 0 | ||||||||
2023 | 2024 | 2023 | 2024 | ||||||
Revenue by nature (HK$ million) | Revenue by nature (HK$ million) |
6.8%
89.4
1,026.0
78.3% Total
1,310.1
2023
Pipeline direct drinking water supply operations
7.6% | |||||||||
13.0% | 129.9 | ||||||||
17.0% | |||||||||
170.1 | |||||||||
293.4 | |||||||||
1.9% | |||||||||
24.6 | 74.0% | Total | 1.4% | ||||||
24.0 | |||||||||
1,274.6 | |||||||||
1,721.9 | |||||||||
2024 | ||
Pipeline direct drinking water supply | Pipeline direct drinking water | Others |
installation and maintenance services | supply construction services | |
8 | China Water Affairs Group Limited | Annual Report 2024 |
Financial Highlights
3. Environmental Protection Business Analysis Revenue (HK$ million)
2,000 | 800 | |||||
1,750 | Decrease | 700 | ||||
1,500 | 1,409.9 | -24.0% | 600 | |||
1,250 | 1,071.5 | 500 | ||||
1,000 | 400 | |||||
750 | 300 | |||||
500 | 200 | |||||
250 | 100 | |||||
0 | 0 | |||||
2023 | 2024 |
Profit (HK$ million)
Decrease
-24.4%
468.4
354.2
2023 2024
Revenue by nature (HK$ million) | Revenue by nature (HK$ million) |
8.3%
117.2
28.4%
399.9
63.3% | Total |
892.8 | |
1,409.9 | |
2023
Sewage treatment and drainage operations services
10.1%
107.9
54.7% | Total |
586.2 | |
1,071.5 | |
2024
Sewage treatment and water environmental renovation construction services
35.2%
377.4
Others
Annual Report 2024 China Water Affairs Group Limited | 9 |
Chairman's Statement
I am pleased to present to the shareholders the annual results of China Water Affairs Group Limited (the "Company") and its subsidiaries (collectively referred to as the "Group") for the year ended 31 March 2024.
FINANCIAL PERFORMANCE
The Group continued its effort to focus on core business through implementation of the urban-rural water supply integration and supply-drainage integration and active development in pipeline direct drinking water supply business to establish a twin-driver business portfolio of water supply and pipeline direct drinking water. For the year under review, the Group recorded a significant growth in its "Pipeline direct drinking water supply" segment. The total revenue attributable to the "Pipeline direct drinking water supply" segment increased from HK$1,310.1 million to HK$1,721.9 million, representing a significant increase of 31.4%. The total revenue attributable to the "City water supply", "Pipeline direct drinking water supply" and "Environmental protection" segments decreased from HK$11,449.3 million to HK$11,069.8 million. This represented a slight decrease of segments revenue by 3.3%, which was mainly because of depreciation of Renminbi and overall decrease in installation and maintenance and construction works in "City water supply" and "Environmental protection" segments during the year.
For the overall result of the year ended 31 March 2024, the Group recorded a revenue of HK$12,858.5 million, representing a decrease of 9.4% from HK$14,195.0 million in last year. The Group recorded a gross profit of HK$4,776.0 million, representing a decrease of 10.7% from HK$5,346.3 million in last year. For the year under review, the Group recorded a profit for the year attributable to owners of the Company of HK$1,533.5 million, representing a decrease of 17.4% from HK$1,856.8 million in last year. The basic earnings per share decreased by 17.5% to HK$0.94 in current year.
DIVIDENDS
In order to save more resources to capture the development of fast expanding pipeline direct drinking water supply business and provide consistent return to the equity shareholders of the Company, the board of directors (the "Board") has proposed to pay the equity shareholders of the Company a final dividend of HK15 cents per share. Together with the interim dividend of HK13 cents per share, the total dividends for the year will be HK28 cents (2023: an interim dividend of HK16 cents and a final dividend of HK18 cents amounting to a total of HK34 cents per share) per ordinary share. The dividend payout ratio is approximately 30%, which is in line with the comparative year.
BUSINESS
The Group upholds its business vision of "Water-oriented, Kindness to Society" while striving for its goal of becoming the best integrated operator of raw water, tap water, pipeline direct drinking water, sewage treatment, drainage, water environmental renovation, smart water and related services in the People's Republic of China (the "PRC") and achieving satisfactory results. The Group sustained satisfactory performance in its city water supply, pipeline direct drinking water and environmental protection businesses, covered an estimated population of more than 30 million people in over 70 cities and counties of various provinces. China faces severe shortage of water resources which is further aggravated by accelerating urbanisation and economic growth. In line with the national call for low-carbon green development as well as to upgrade the Group's water supply services, it is expected that the water sector, particularly the pipeline direct drinking water, has huge room for growth. As economic growth and marketisation of the water sector continues, we believe that water tariff and usage still have ample room to grow.