Hong Kong Exchanges and Clearing : Annual Report 2018/19

中國水務集團有限公司

China Water Affairs Group Limited

Stock code : 855

Annual Report 2019

* For identication purposes only

Annual Report 2019 • China Water Affairs Group Limited

	Contents
	Pages
Corporate Information	2
Financial Highlights	4
Chairman's Statement	8
Directors' and Senior Management Biographical Details	13
Corporate Governance Report	16
Directors' Report	25
Independent Auditor's Report	35
Consolidated Income Statement	43
Consolidated Statement of Comprehensive Income	44
Consolidated Statement of Financial Position	45
Consolidated Statement of Changes in Equity	47
Consolidated Statement of Cash Flows	49
Notes to the Consolidated Financial Statements	52
Particulars of Properties Held for Investment	169
Particulars of Properties Held under Development	170
Particulars of Properties Held for Sale	171
Five-Year Financial Summary	172

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China Water Affairs Group Limited • Annual Report 2019

Corporate Information

BOARD OF DIRECTORS

Executive

Mr. Duan Chuan Liang (Chairman)

Ms. Ding Bin

Ms. Liu Yu Jie

Mr. Li Zhong

Non-executive

Mr. Zhao Hai Hu

Mr. Zhou Wen Zhi

Mr. Makoto Inoue

Ms. Wang Xiaoqin

Independent Non-executive

Mr. Chau Kam Wing

Mr. Ong King Keung

Mr. Siu Chi Ming

Ms. Ho Ping

AUDIT COMMITTEE

Mr. Chau Kam Wing (Chairman of committee) Mr. Ong King Keung

Mr. Siu Chi Ming Ms. Ho Ping

REMUNERATION COMMITTEE

Mr. Chau Kam Wing (Chairman of committee) Mr. Ong King Keung

Mr. Siu Chi Ming Ms. Ho Ping

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

Level 22, Hopewell Centre

183 Queen's Road East

Hong Kong

LEGAL ADVISERS

As to Bermuda law

Conyers Dill & Pearman

AUDITOR

PricewaterhouseCoopers

PRINCIPAL BANKER

Bank of Communications

China Merchants Bank

Asian Development Bank

Australia and New Zealand Banking Group Limited

Far Eastern International Bank

WEBSITE

http://www.chinawatergroup.com

STOCK CODE

855

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Annual Report 2019 • China Water Affairs Group Limited

Corporate Information

Water supply business

City water supply operation and construction

- Connected users of over 4.7 million

- Potential reaching population of approximately 22 million people

- Water pipelines over 150,000 km

	Environmental protection business
	Sewage treatment operation and				Heilongjiang
	construction (including water environmental
	renovation construction projects)
Xinjiang				Inner Mongolia	Jilin
Drainage operation
						Liaoning
	Gansu				Beijing
					Tianjin
		Ningxia		Hebei
	Qinghai	Shanxi	Shandong
		Shaanxi		Henan	Jiangsu
		Sichuan		Hubei	Anhui	Shanghai
	Tibet
	Chongqing
				Zhejiang
		Guizhou	Hunan Jiangxi
				Fujian
		Yunnan
		Guangxi	Guangdong

Hainan

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China Water Affairs Group Limited • Annual Report 2019

Financial Highlights

		2019	2018
		HK$'000	HK$'000	Change
RESULTS HIGHLIGHTS
Revenue	8,302,211	7,580,176	9.5%
Gross profit	3,463,839	3,270,636	5.9%
Profit for the year	2,130,283	1,761,524	20.9%
Profit for the year attributable to owners of the Company	1,369,235	1,140,518	20.1%
Basic earnings per share (HK cents)	85.10	72.62	17.2%
Diluted earnings per share (HK cents)	85.10	71.82	18.5%
Total dividend per share (HK cents)	28	23	21.7%
	- Interim dividend (HK cents)	12	8	50.0%
	- Final dividend (HK cents)	16	15	6.7%
		2019	2018
		HK$'000	HK$'000	Change
BALANCE SHEET HIGHLIGHTS AND RATIOS
Total assets	35,824,636	28,589,287	25.3%
Total liabilities	22,922,166	17,434,878	31.5%
Net assets	12,902,470	11,154,409	15.7%
Net assets per share1	4.95	4.46	11.0%
Current ratio	1.13	1.04
Gearing ratio2	64.0%	61.0%

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2

Net assets per share = Equity attributable to owners of the Company / Ordinary shares in issue at year end Gearing ratio = Total liabilities / Total assets

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