Download * * * * Waste treatment capacity further increased with technological

[For Immediate Release]
CANVEST’S PROFIT FOR THE YEAR UP 59.1% TO HK$208 MILLION IN 2014
* * * *
Waste treatment capacity further increased with technological advantage
Financial Summary
Year Ended 31 December
(HK$’000)
2014
2013
Change
Revenue
793,967
390,173
+103.5%
Gross profit
342,321
202,636
+68.9%
Profit for the year
208,359
130,969
+59.1%
Profit for the year (excluding one-off listing expenses)
241,426
134,124
+80.0%
Profit attributable to equity holders of the Company
191,038
130,969
+45.9%
12.7
8.7
+46.0%
Basic earnings per share (HK cents)
(23 March 2015, Hong Kong) – Canvest Environmental Protection Group Company Limited (“Canvest” or the
"Company,” together with its subsidiaries, collectively the ”Group,” stock code: 1381.HK), a leading
waste-to-energy (“WTE”) provider in China, is pleased to announce its first annual results after listing.
For the year ended 31 December 2014, the Group’s revenue and gross profit were HK$794 million and HK$342
million, representing an increase of 103.5% and 68.9%, respectively, from last year. The increase was mainly
contributed by Dongguan China Scivest Environmental Power Company Limited (“China Scivest”), which was
acquired in 2014, and the construction revenue relating to BOT project of Zhanjiang WTE plant. Excluding the
one-off listing expenses, its profit for the year surged 80.0%, to HK$241 million. Basic earnings per share were
HK12.7 cents, representing an increase of 46%.
Ms. Lee Wing Yee Loretta, Chairlady of Canvest, said, “The Group has achieved major milestones in our
development history during 2014. On top of the acquisition of China Scivest, three pre-IPO strategic investors,
namely AEP Green Power Limited, Chatsworth Asset Holding Ltd. and Wise Power Investment Limited, had
been successfully introduced to the Company in May 2014. Furthermore, the Company was successfully listed
on the Main Board of The Stock Exchange of Hong Kong Limited in December 2014 and was able to attract
Thrive Bloom Limited, Guangxi Beibu Gulf Industrial Investment Fund (Limited Partnership) and North
Industries Group Investment Management Company Limited as the cornerstone investors. All of these
initiatives are expected to boost the brand and corporate image of the Group, broaden its shareholder base
and provide greater flexibility for financing channels, and greatly facilitate the business development of the
Group in the future. In addition, two wholly-owned subsidiaries of the Group, namely Dongguan Kewei
Environmental Power Company Limited and Dongguan China Canvest Environmental Power Company Limited,
were listed as ‘Recommended Corporations for Construction and Operation of Daily Waste Incineration
Treatment Projects of Guangdong Province (First Batch)’ by the Department of Housing and Urban-Rural
Development of Guangdong Province. Attaining this status not only is an official recognition, but an
endorsement of the operation management, technologies, processes as well as the overall evaluation of the
Group.”
~ More ~
Canvest’s profit for the year up 59.1% to HK$208 million in 2014
23 Mar 2015 / P. 2
The Group’s revenue is mainly derived from sale of electricity, fees for waste treatment and construction of
BOT projects. In 2014, the Group processed approximately 1,320,189 tons of municipal solid waste ("MSW")
via innocuous treatment, generated 598,672,000 kWh via green power generation, and eliminated emissions
of 646,565.8 tons of carbon dioxide. Revenue from sale of electricity amounted to HK$349 million (2013：
HK$261 million), representing 44.0% of total revenue, while revenue from waste treatment fees amounted to
HK$193 million, representing 24.3% of total revenue. Construction revenue and financial income arising from
BOT project amounted to HK$252 million, representing 31.7% of total revenue.
Notable increase in waste processing capacity
During the year, the WTE plants of Dongguan Kewei Environmental Power Company Limited (“Kewei”) and
China Scivest were operating smoothly. After the WTE plants of Dongguan Eco-Tech Environmental Power
Company Limited (“Eco-Tech”) and Zhanjiang Yuefeng Environmental Power Company Limited (“Zhanjiang
Yuefeng”) start operation in the third quarter of 2015, the daily MSW processing capacity of the Group’s four
WTE plants’ would be further increased to 6,400 tonnes. In addition, the Group received a notice from the
Dongguan Municipal Administration in January 2015 that Eco-Tech was permitted to expand the daily MSW
processing capacity of its WTE plant beyond 1,800 tonnes, by an additional 1,500 tonnes, upon the completion
of the technological upgrade currently in progress. With that, the daily MSW processing capacity of the Group
would be further increased to 8,400 tonnes.
The Group’s WTE business includes BOO (build-own-operate) and BOT (build-own-transfer) projects, of which
Eco-Tech and Kewei WTE plants are BOO projects and China Scivest and Zhanjiang Yuefeng WTE plants are
BOT projects.
The Group could benefit from the favorable renewable energy policies and related policies of the Chinese
government, including preferential on-grid tariff, dispatch policy and tax policies.
Ms. Lee concluded, “In recent years, the Chinese government has become increasingly stringent in regulating
environmental protection. In particular, the Ministry of Environmental Protection and General Administration
of Quality Supervision, Inspection and Quarantine of the PRC had issued the new ‘Standard for Pollution
Control on Municipal Solid Waste Incineration’ and required strict compliance with this standard by new and
existing WTE plants starting from 1 January 2016. The Group is of the view that the WTE industry is striding
towards a healthy and steady development. Canvest has in-depth knowledge in WTE technologies and is
experienced in technological upgrade of plants with fluidized bed technology. The Group aims to expand its
WTE business through developing new projects or by way of seeking acquisition opportunities, mainly WTE
plants using fluidized bed technology or those WTE plants which are poorly managed, lack of technical
expertise or operational efficiency. In addition, the Group will also expand its business offerings by providing
consultation services to other WTE enterprises. With regard to internal development, the Group will seek all
appropriate measures to enhance our operational efficiency and financial performance, and to improve our
recruitment and training programs, in order to lay a solid foundation for rapid development in the future.”
~ End ~
Canvest’s profit for the year up 59.1% to HK$208 million in 2014
23 Mar 2015 / P. 3
About Canvest
Canvest Environmental Protection Group Company Limited is a leading waste-to-energy (WTE) provider
focused on the development, management and operation of WTE plants. Currently, the Group has five WTE
plants, of which four are located in Dongguan and one is located in Zhanjiang. According to Euromonitor,
among all non-State-owned background enterprises, Canvest is the largest WTE provider in Guangdong
Province and the fourth-largest WTE provider in China. Going forward, Canvest will actively pursue business
opportunities which are commercially viable and lucrative and will strive to become a dominant pure-play
WTE provider in China. The Group was listed on the Main Board of Hong Kong Stock Exchange on 29
December 2014 (stock code: 1381.HK).
Project Overview
Project
Eco-Tech
Eco-Tech II
Kewei
China Scivest
Location
Dongguan, Guangdong
Dongguan,
Guangdong
Dongguan,
Guangdong
Dongguan,
Guangdong
Daily MSW
Processing
Capacity
1,200 tonnes
(1,800 tonnes after
Technological Upgrade)
1,500 tonnes
1,800 tonnes
1,800 tonnes
36 MW
Planning
30 MW
42 MW
30 MW
Fluidized bed /
Moving grate (before
/ after technological
Upgrade)
Moving grate
Moving grate
Moving grate
Moving grate
BOO
BOO
BOO
BOT
BOT
28 years
(From 18 Apr 2013 to
17 Apr 2041)
Installed Power
Generation
Capacity
Technology
Business Model
Zhanjiang Yuefeng
Zhanjiang,
Guangdong
1,500 tonnes
(Phase 1 - 1,000
tonnes
Phase 2 – 500 tonnes)
N/A
N/A
N/A
24 years
(From 10 Dec
2004 to 30 Nov
2028)
Commercial
Operation
Sep 2007
Planning
Nov 2012
Aug 2014
2016 Q2
Latest Status
Undergoing
technological upgrade
(Trial operation in 2015
Q3)
Preparing
Commercial
operation
Commercial
Operation
Under construction
(Trial operation in
2015 Q3)
Concessionary
Period
Media enquiries:
Strategic Financial Relations (China) Limited
Ms. Serine Li
Ms. Winnie Lau
Tel：(852) 2864 4835
Tel：(852) 2864 4876
Email：[email protected]
Email：[email protected]