* For identi cation purposes only
中國水務集團有限公司 China Water Affairs Group Limited Stock code : 855
Annual Report 2020 Annual Report 2020 • China Water Affairs Group Limited 1
Contents
Pages
Corporate Information 2
Financial Highlights 4
Chairman’s Statement 8
Directors’ and Senior Management Biographical Details 13
Corporate Governance Report 17
Directors’ Report 26
Independent Auditor’s Report 36
Consolidated Income Statement 44
Consolidated Statement of Comprehensive Income 45
Consolidated Statement of Financial Position 46
Consolidated Statement of Changes in Equity 48
Consolidated Statement of Cash Flows 50
Notes to the Consolidated Financial Statements 53
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 2 China Water Affairs Group Limited • Annual Report 2020
Corporate Information
BOARD OF DIRECTORS AUTHORISED REPRESENTATIVES Executive Mr. Duan Chuan Liang Mr. Duan Chuan Liang (Chairman) Mr. Lie Chi Wing Ms. Ding Bin Ms. Liu Yu Jie Mr. Li Zhong REGISTERED OFFICE Mr. Duan Jerry Linnan (appointed on 15 October 2019) Clarendon House 2 Church Street Non-executive Hamilton HM11 Mr. Zhao Hai Hu Bermuda Mr. Zhou Wen Zhi Mr. Makoto Inoue Ms. Wang Xiaoqin HEAD OFFICE AND PRINCIPAL PLACE OF BUSINESS Independent Non-executive Suite 6408, 64/F Mr. Chau Kam Wing Central Plaza Mr. Siu Chi Ming 18 Harbour Road Heilongjiang Ms. Ho Ping Wanchai Ms. Zhou Nan (appointed on 22 November 2019) Hong Kong Mr. Chan Wai Cheung Admiral (appointed on 15 January 2020) Inner Mongolia Mr. Ong King Keung HONG KONG BRANCH SHARE REGISTRAR Jilin Xinjiang (resigned on 22 November 2019) Tricor Tengis Limited Level 54, Hopewell Centre Liaoning AUDIT COMMITTEE 183 Queen’s Road East Gansu Beijing Mr. Chau Kam Wing (Chairman of committee) Hong Kong Mr. Siu Chi Ming Tianjin Ms. Ho Ping Ms. Zhou Nan (appointed on 22 November 2019) LEGAL ADVISERS Hebei Mr. Chan Wai Cheung Admiral Ningxia Shanxi As to Bermuda law Qinghai (appointed on 15 January 2020) Conyers Dill & Pearman Shandong Mr. Ong King Keung (resigned on 22 November 2019) AUDITOR Shaanxi Henan Jiangsu REMUNERATION COMMITTEE PricewaterhouseCoopers Anhui Mr. Chau Kam Wing (Chairman of committee) Shanghai Sichuan Hubei Mr. Siu Chi Ming PRINCIPAL BANKER Tibet Ms. Ho Ping Chongqing Bank of Communications Zhejiang Ms. Zhou Nan (appointed on 22 November 2019) China Merchants Bank Mr. Chan Wai Cheung Admiral Hunan Jiangxi (appointed on 15 January 2020) Asian Development Bank Guizhou Mr. Ong King Keung Australia and New Zealand Banking Group Limited Fujian (resigned on 22 November 2019) Far Eastern International Bank Yunnan Guangxi NOMINATION COMMITTEE Guangdong WEBSITE Mr. Duan Chuan Liang (Chairman of committee) Mr. Chau Kam Wing http://www.chinawatergroup.com Mr. Siu Chi Ming Ms. Ho Ping STOCK CODE Hainan 855 COMPANY SECRETARY Mr. Lie Chi Wing, FCCA, CPA, CFA Annual Report 2020 • China Water Affairs Group Limited 3
Corporate Information
Water supply business City water supply operation and construction – Connected users over 5.7 million – Potential reaching population over 30 million people – Water pipelines over 150,000 km
Environmental protection business Sewage treatment operation and construction (including water environmental renovation construction projects) Heilongjiang Drainage operation
Inner Mongolia Jilin Xinjiang Liaoning Gansu Beijing Tianjin Hebei Ningxia Shanxi Qinghai Shandong
Shaanxi Henan Jiangsu Anhui Sichuan Shanghai Tibet Hubei Chongqing Zhejiang Hunan Jiangxi Guizhou Fujian Yunnan Guangxi Guangdong
Hainan 4 China Water Affairs Group Limited • Annual Report 2020
Financial Highlights
2020 2019 HK$’000 HK$’000 Change
RESULTS HIGHLIGHTS Revenue 8,694,303 8,302,211 4.7% Gross profit 3,758,485 3,463,839 8.5% Profit for the year 2,507,289 2,130,283 17.7% Profit for the year attributable to owners of the Company 1,639,495 1,369,235 19.7% Basic earnings per share (HK cents) 102.12 85.10 20.0% Diluted earnings per share (HK cents) 102.12 85.10 20.0% Total dividend per share (HK cents) 30 28 7.1% – Interim dividend (HK cents) 14 12 16.7% – Final dividend (HK cents) 16 16 –%
2020 2019 HK$’000 HK$’000 Change
BALANCE SHEET HIGHLIGHTS AND RATIOS Total assets 41,902,953 35,824,636 17.0% Total liabilities 27,804,450 22,922,166 21.3% Net assets 14,098,503 12,902,470 9.3% Net assets per share1 5.30 4.95 7.1% Current ratio 1.08 1.13 Gearing ratio2 66.4% 64.0%
1 Net assets per share = Equity attributable to owners of the Company / Number of issued shares at year end 2 Gearing ratio = Total liabilities / Total assets Annual Report 2020 • China Water Affairs Group Limited 5
Financial Highlights
The Group’s total revenue and profit for the year:
Total revenue (HK$ million) Total profit (HK$ million)
1 ,000 3,500 Increase Increase 1 ,000 3,000 17.7% 4.7% 10,000 ,500 ,507.3 ,30 . , .3 ,130.3 ,000 ,000