CHINA Everbright Water’s net profit for the full year ended Dec 31 fell 14 per cent to HK$1 billion (S$175.5 million) from HK$1.2 billion in the previous corresponding period.
Earnings per share fell 14 per cent to HK$0.3564 from HK$0.4151, based on financials released by the Hong Kong and Singapore dual-listed environmental protection company on Tuesday (Feb 25).
Its board of directors have proposed a final dividend of HK$0.0581 per share, the same as the year-ago period. This is payable on May 23, following the record date of Apr 29.
This brings the total dividend for FY2024 to HK$0.119 per share, which is 4 per cent lower than the HK$0.1244 for FY2023.
Revenue for the full year inched up slightly by 2 per cent to HK$6.9 billion from HK$6.7 billion. Construction service revenue climbed 28 per cent on the year to HK$2.6 billion from HK$2.1 billion, on the back of higher construction activities.
Overall gross profit margin decreased to 38 per cent from 42 per cent in the prior year, and was attributed to an increase in the proportion of construction service revenue recognised within the total revenue for FY2024 compared to FY2023.
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The environmental protection company noted that construction services have a lower gross profit margin than operating services and as a result, a larger proportion of construction service revenue would reduce the overall gross profit margin.
It also highlighted its healthy financial position, with “ready access to diversified financing channels”. As at end-December, its gearing ratio stood at 61 per cent, a slight increase from 60.7 per cent a year ago.
Looking ahead, Tao Junjie, executive director and chief executive of Everbright Water, said that the group “will closely align with China’s key national policies and guidelines”, with a focus on water-related areas.
He added that the group will drive endogenous growth by improving the quality and efficiency of existing assets.
Shares of China Everbright Water were up 2 per cent or S$0.005 at S$0.25 as at 3.27 pm on Tuesday.
