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 year ended 31-12-2018 amounted to HKD 70.00 million. Basic earnings per share was HKD 0.2555. No dividend declared. Turnover amounted to HKD 492.5 million. (Announcement Date: 25 Mar 2019)
Business Review - For the year ended December 31, 2018
We are a wastewater treatment service provider operating and managing four wastewater treatment facilities located in Yinchuan, being the capital city of Ningxia, the People’s Republic of China (the “PRC”). 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.
Our revenue was primarily derived from three major revenue components, namely: (i) wastewater treatment construction services; (ii) wastewater treatment operation services; and (iii) finance income from service concession arrangement. For the year ended 31 December 2018, we recorded revenue of approximately HK$492.5 million, out of which the revenue contribution of our three major revenue components were as follows, (i) approximately 50% of our revenue was derived from wastewater treatment construction services; (ii) approximately 29% of our revenue was derived from wastewater treatment operation services; and (iii) approximately 19% of our revenue was derived from finance income from service concession arrangement.
As at 31 December 2018, our aggregate daily wastewater treatment capacity had already been increased to 375,000 cubic metres per day, and the discharge standard for all plants had already been upgraded to Class IA. We have completed the construction works for the upgrading of Plant 1 from Class II to Class IA during the year and is currently in the process of obtaining the completion acceptance. The construction works for the expansion for Plant 4 by additional capacity of 100,000 cubic meters where the treated water discharge shall meet Quasi Surface Water Standard Class IV (準四類水標準) has commenced in the second half of 2018 and we expect it to be completed by the end of 2020.
For the year ended 31 December 2018, the total quantity of water effluent treated was approximately 113,396,000 cubic meter, representing a decrease of approximately 6% from the year ended 31 December 2017 at 120,387,000 cubic meter, mainly due to one-off 15 days of suspension to the wastewater treatment operations of Plant 1 attributable to the upgrading works as well as lower incoming wastewater flows from Plant 3 and Plant 4 during the year.
During the year, as an ancillary business, we had also derived approximately 1% of our total income from the supply of recycled water, which was the treated wastewater processed by our Plant 1 and Plant 3, to end-users in Yinchuan which include but not limited to a power plant and a public institution in Yinchuan in charge of public area landscaping.
On another note, given the continuous effort of Yinchuan local government on adhering to the urban development ideology of “Green, High-end, Harmonious and Livable*” (綠色、高端、和諧、宜居), our main subsidiary, Taliworks (Yinchuan) Wastewater Treatment Co. Ltd* (達力(銀川)污水處理有限公司) was accredited as an “Advanced Entity in Overall Environmental Management” (環境綜合治理工作先進集體) for the year of 2017 issued by the Municipal Government of Yinchuan in December 2018.
Business Outlook - For the year ended December 31, 2018
2018 was the first year that our shares (the “Shares”) were listed on the Main Board of The Stock Exchange of Hong Kong Limited (the “Stock Exchange”). The successful listing of our Shares will provide strong capital support to our Company in carrying out our future business development.
In the meantime, our Group will continue to strengthen our mission of ensuring stable operation, stable outflow of treated wastewater as per required discharge standards under the concession agreement entered into between us and Yinchuan local government (穩定達標排放) and will continue to focus on cost optimisation and increasing efficiency in our existing wastewater treatment facilities.
Source: TIL Enviro (01790) Annual Results Announcement