Principally engaged in the wastewater treatment business in the People’s Republic of China (the ‘‘PRC’’).
The Group's profit attributable to shareholders for the 6 months ended 30-06-2019 amounted to HKD 43.83 million. Basic earnings per share was HKD 0.0438. No dividend declared. Turnover amounted to HKD 154.5 million. (Announcement Date: 29 Aug 2019)
Business Review - For the six months ended June 30, 2019
We are a wastewater treatment service provider operating and managing four wastewater treatment facilities located in Yinchuan, being the capital city of Ningxia, the PRC, providing wastewater treatment services to the local government. We operate and manage our wastewater treatment plants on a “Transfer — Operate — Transfer” (TOT) basis for 30 years since September 2011. We also undertake the upgrading and expansion of our wastewater treatment facilities to achieve higher wastewater discharge standards and to increase our designed treatment capacities.
As at 30 June 2019, our aggregate daily wastewater treatment capacity was 375,000 cubic metres per day, and the discharge standard for all plants were Class IA. In the first half of 2019, we noted there were overall reduction in the inflow of wastewater into all plants causing a consequential decrease in the total quantity of water effluent treated by us. For the Reporting Period, the total quantity of water effluent treated was approximately 49,841,000 cubic metres per day, representing a decrease of approximately 12% from the same period ended 30 June 2018 at 56,615,000 cubic metres per day.
The construction works for the expansion for Plant 4 by additional capacity of 100,000 cubic metres where the treated water discharge shall meet Quasi Surface Water Standard Class IV ( 準四類水標準) progressed well in the first half of 2019, we anticipate to enter into testing and commission stage by end of 2019. On the other hand, the expansion of Plant 2 by additional capacity of 25,000 cubic metres per day where the treated water discharge standard shall meet Class IA has been put on hold until further notice from the local government of Yinchuan.
During the Reporting Period, the Group received a one-off cash incentive of approximately HK$17.9 million (equivalent to RMB15 million) from Ningxia Hui Autonomous Region Finance Bureau for our successful listing on the Main Board of The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) in November 2018. This is in line with Ningxia government’s aspiration of promoting capital market growth in Ningxia, the PRC.
Business Outlook - For the six months ended June 30, 2019
In the second half of 2019, our Group will focus on expanding our organic growth by completing the existing expansion of additional 100,000 cubic metres capacity in Plant 4 and our management is hopeful to complete the expansion works on or ahead of schedule. Operationally, our Group will continue to strengthen our mission of ensuring stable operation, stable outflow of treated wastewater as per required discharge standards ( 穩定達標排放) under the concession agreement entered into with the local government of Yinchuan and will continue to focus on cost optimization and increasing efficiency in our wastewater treatment plants.
Our Group also endeavour to expand by pursuing new wastewater treatment projects in Yinchuan, Ningxia and at other regions where there is an increasing demand for wastewater treatment services with the aim of strengthening our market position in the PRC.
Source: TIL Enviro (01790) Interim Results Announcement