2017 Interim Results Presentationen.chongto.com/.../08/2017-Interim-Results-Presentation.pdf ·...
Transcript of 2017 Interim Results Presentationen.chongto.com/.../08/2017-Interim-Results-Presentation.pdf ·...
2017 Interim Results Presentation
25 August, 2017
Stock Code: 1363.HK
Disclaimer This presentation incorporates information contained in the interim results announcement (the “Results Announcement”) for the six months ended 30 June 2017 of CT Environmental Group (the “Company”). This presentation should be read in conjunction with the Results Announcement and is qualified in its entirety by the more detailed information and financial information contained in the Results Announcement. Other than the information contained in the Results Announcement, you shall not reproduce or distribute this presentation, in whole or in part, and you shall not disclose any of the contents of this presentation or use any information herein for any purpose without the Company’s prior written consent. You hereby agree to the foregoing by accepting delivery of this presentation. The contents of this presentation have not been reviewed or approved by any regulatory authority in Hong Kong or elsewhere. The contents of this presentation are not investment, legal or tax advice. You are advised to exercise caution in perusing the contents of this presentation. If you are in any doubt about any of the contents of this presentation, you should obtain independent professional advice.
Agenda
Management Speech
Strategic Focus Improvement on Internal Control
Financial Overview
Q&A
Management Speech
Mr. Tsui Cham To, Chairman
Mr. Lu Yili, Honorary Chairman
Mr. Xu Zhencheng, CEO & Executive Director
Strategic Focus Mr. Xu Zhencheng, CEO & Executive Director
Mr. Du Daohong, GM & Chief Internal Control Officer
Improvement on Internal Control
Tasks accomplished:
I. The internal control function is established and led by Dr. Du Daohong
II. Engaged KPMG as an external advisor and a three-year (2016-2018) improvement scheme is carried out
III. Training on connected transaction among board of directors was organized in May
2017 IR Financial Overview Mr. Edwin Ma, Chief Financial Officer
2017 IR financial highlights
RMB (mm) 1H2017 1H2016 % Change Turnover 881.8 1,082.4 -18.5% Turnover excluding BOT construction revenue 785.1 758.6 +3.5%
Gross Profit 397.9 451.1 -11.8% Profit Attributable to Equity Holders 337.3 304.1 +10.9%
Net profit excluding BOT construction profit 325.2 262.3 +24.0%
Basic EPS 0.05 0.05 -
37%
33%
7%
6% 5%
2% 10%
Revenue diversification continued
37%
33%
10%
5% 5%
3% 7%
1H20
17
1H20
16
Revenue Breakdown by Customer Revenue Breakdown by Segment
23%
20%
20%
32%
5%
27%
26% 25%
14%
8% RMB 881.8mm
RMB 1,082.4mm
Water Treatment
Sludge and Solid Waste Treatment
Hazardous Waste Treatment
BOT Project Construction Service
Heating Service
Textile Automobile Manufacture
Municipalities Electronic
Chemical Papermaking
Others
EBITDA Margin, Gross Margin and Net Margin
57% 50%
55% 55%
50% 42%
46% 45%
42%
28% 28%
38%
FY2015 1H2016 FY2016 1H2017
EBITDA Margin Gross Margin Net Margin
Recurring* EBITDA Margin, Gross Margin and Net Margin
59% 58% 59% 56%
54% 54% 55% 52%
29% 30% 28% 30%
FY2015 1H2016 FY2016 1H2017Recurring EBITDA Margin Recurring Gross MarginRecurring Net Margin
*Add back VAT refund to turnover, exclude income from BOT construction services, entrusted operation and one-off gain/loss
Margins analysis
8.7% 14.8%
% of turnover
93.8
130.1
1H2016 1H2017
47.1 43.4
1H2016 1H2017
4.5% 3.5%
Effective interest rate
Administrative Expense Finance Cost (RMB mm)
Expense analysis
Other financial indicators
As at 30/06/2017
As at 31/12/2016 30/06/2017 vs 31/12/2016
A/R Balance (RMB million) 609.7 584.7 +4.3%
A/R Turnover (days) 121.9 97.5 +24.4 days
66.4%
55.8%
30/06/2017 31/12/2016
Gearing ratio
(Total Bank Borrowing – Cash) / Total Equity
Capital expenditure
83%
24%
12%
49%
5%
27%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1H2017 1H2016Water Treatment Sludge and Solid Waste Treatment Hazardous Waste Treatment
RMB 639 mm RMB 130 mm
Q&A
APPENDIX
CTEG business model
Committed to becoming China’s leading one-stop industrial waste management solution provider
Established business with strong track record in industrial wastewater, sludge and solid waste, and hazardous waste treatment solutions
Best positioned to capitalize on opportunities brought about by fighting global climate change and national policy
Solid management team with operational excellence to deliver
Waste generating enterprises
CTEG’s major customers Untreated solid waste
Untreated hazardous waste
Untreated wastewater
Reclaimed water (water recycling)
Industrial water supply
Landfill, incineration and resource utilisation
Landfill, incineration, resource utilisation and concentrated sewage treatment
Treated wastewater being discharged
Sludge produced in the wastewater treatment
process Nutrition soil, green brick and light ceramsite
Business Model
Solid waste treatment facilities
Hazardous waste treatment facilities
Wastewater treatment facilities
Industrial water supply facilities Sludge treatment facilities
Forge ahead at a stage that challenges and opportunities co-exist
Flagship project in Guangxi commenced trial operation on 20 May 2017 – The first innovative industrial park nationwide that environmental protection precedes industrial production – Centralized treatment of industrial wastewater and sludge with prospective future planning of solid waste and
hazardous waste treatment – Plus an extension of services to utilities: supply of water, electricity and heat
New projects secured to further expand the revenue base of the Group I. Yulin Traditional Chinese Medicine Health Industrial Park IWWT project with a total planned treatment capacity
of 30,000 m3/day II. Yonghe Haitao Phase 4 was added a planning of Municipal WWT with daily treatment capacity of 50,000m3
III. Successive winning of two tenders with regard to river remediation services
First drawdown of ADB loan made on 20 June 2017 – Principal amount of RMB230 million with a fixed interest rate and 10-year tenure – Continuous communication with ADB to work on the next step
Ongoing business expansion Pipeline projects listed for 2017-2019
Projects Segment Business Model Capacity
Estimated Time of Operation
Guangxi Yulin (Sludge) Solid Waste BOO Sludge: 200 tonnes/day 2017 Q3
Longmen Industry Base Solid Waste BOO Industrial Solid Waste: 300,000 tonnes/year 2017 Q4
Longmen Industry Base Solid Waste BOT Waste-to-energy: 600 tonnes/day 2017 Q4
Longmen Industry Base Solid Waste BOO Sludge: Phase I: 500 tonnes/day 2018 Q1
Sichuan Guangyuan (Phase I) Water Treatment BOO IWWT: 50,000 m3/day;
IWS: 50,000 m3/day 2018 Q1
Yulin Chinese Medicine (Phase I) Water Treatment BOO IWWT: 5,000 m3/day 2018 Q1
Guangxi Yulin (Phase II) Water Treatment BOO IWWT: 50,000 m3/day;
IWS: 50,000 m3/day 2018 Q1
Yinghong Park (Phase I) Water Treatment BOO IWWT: 20,000 m3/day;
IWS: 50,000 m3/day 2018 Q2
Yonghe Haitao (Phase IV) Water Treatment BOT MWWT: 50,000 m3/day 2018 Q4
Yonghe Haitao (Phase IV) Water Treatment BOO IWWT: 50,000 m3/day 2019 1H