On March 27, 2018, the meeting of directors of Kangda International Environmental Protection Co., Ltd. (hereinafter referred to as "Kangda EP", stock code: HK6136) was held in Hong Kong, Zhao Junxian, Chairman of the board of directors, was present in the meeting, and delivered detailed report for the work of the board of directors in 2017 and the completion of objectives and tasks in 2017 to shareholders, and formally disclosed to the public annual performance up to December 31, 2017. In the morning of March 28, Mr. Zhao Junxian held Kangda EP performance conference in 2017 in Mandarin Oriental Hotel, Mr. Zhang Weizhong, Chief Executive Officer of Kangda EP, Ms. Liu Zhiwei, Mr. Gu Weiping, Mr. Wang Litong, Mr. Wang Tianci, Executive Directors and independent directors were present in the conference and communicated with the investors and media in the meeting.
Stable rise of performance
In 2017, Kangda EP realized main operating revenue of more than RMB 2.5 billion, with increase of about 31% than last year, and realized profit of parent company of more than RMB 400 million, with increase of about 24% than last year. Up to December 31, 2017, Kangda EP had realized daily sewage treatment capacity of 4,113,400 tons, with increase of about 22% than 2016. Up to December 31, 2017, total assets of Kangda EP had reached more than RMB 15 billion.
The state continued to strengthen supervision in tax and environmental protection industries in 2017, and environment assessment system was completely reformed; river chief system was developed comprehensively; a series of environmental protection regulations were approved successively and implemented formally, and the supervision for PPP projects was strengthened continuously. To respond to governmental reform actions, Kangda EP undertook several M&A projects in 2017, including the acquisition for about 1.09% equity of Protection (Asia) Water Treatment Holding Limited, 100% equity of Hatlen Investment (Aus.) Pty Ltd., 100% equity of Shandong Fengmin Water Affairs Co., Ltd., 100% equity of Wenzhou Chuangyuan Water Affairs Co., Ltd., and 100% equity of Sichuan Weiyuan Hefeng Bioengineering Co., Ltd.
In the same year, Kangda EP also undertook many urban water affairs projects through market competition, including Fresh Water Sewage Treatment Project in Huiyang District, Huizhou of Guangdong Province, Domestic Sewage Treatment Project in Ma'an Town, Huizhou of Guangdong Province, and Sewage Treatment Plant Project in Dongsheng Town, Zhongshan of Guangdong Province.
In 2017, the multi-specification layout of external strategic alliance of Kangda EP turned into harvest period to gain benefits; with the implementation of PPP Project, 3 sub-projects of Ecological Protection and Treatment (Phase I) Project for Fuhe River Basin in Fuzhou of Jiangxi Province, Bundled Project for Domestic Sewage Treatment Facilities in Jiaoling County of Guangdong Province, and Renovation & Extension Project for Sewage Treatment Plant in Dongfang of Hainan Province were also implemented.
Strategic layout promotes continual development
With continual adjustments to domestic environmental protection policies and financial policies, environmental protection market is being expanded continuously, and the competition in environmental protection field is also becoming more and more fierce, Kangda EP will continue to promote the transformation from conventional water affairs treatment service provider to integrated urban environment treatment service provider, and will continuously expand water environment treatment services, including integrated river basin treatment, black and odorous water body recovery, sponge city, and integrated urban pipe gallery, and will extend conventional water affairs to the entire industry chain of water affairs quickly and accumulate project reservation promptly to lay foundation for the development of Kangda EP in the 10 years to come.
In the next 2 years, Kangda EP will seize business opportunities in environmental protection market in a real-time manner, and will make use of new policies for environmental protection and the opportunities brought about by PPP mode to integrate internal and external effective resources of the group in active manners, thus to continuously improve financial performance and industrial position of the group and create higher value for shareholders continually.
(From Group President Office)