UTILITIES | Staff Reporter, Singapore

China Everbright Water's 9M profit declined 9% to $52m

This is despite revenue surging 39% to $342m.

For the third quarter period, China Everbright Water’s revenue increased by 35% year-on-year (yoy) to HKD553.49m ($107.9m). The increase was mainly attributable to the increase in construction revenue from the expansion and upgrading of several Build-Operate-Transfer (BOT) projects which were under construction during the period under review.

For the 9M period ending September, revenue rose 39% to HKD1.9b ($342m).

Other income increased by 499% as compared to the same period of 2015, mainly due to increase in value-added tax refund during the Period under review.

The gross profit grew by 17% yoy to HKD222.77m ($40.56m), with gross profit margin at 40%(3QFY2015: 47%). The decrease in gross profit margin was mainly due to a larger portion of construction revenue recognised in the mix of total revenue of 3QFY2016 as compared to the same period of the previous year.

In general, construction services have lower gross profit margin as compared to operation services.

During 3Q, profit after tax rose 7% to HKD98.1m ($17.86m) but for the 9M period ending September, it dropped 9% to HKD285.6m ($52m). 

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