Everbright Int'l to focus more on green business
By Vincent Lam (China Daily)
Updated: 2005-04-15 10:53

China Everbright International, the overseas arm of mainland conglomerate China Everbright Holdings, expects to increase weight on its environment protection business in China.

"We are confident that environmental protection business will become a new growth momentum for the group," Chief Executive Officer Chen Xiaoping said yesterday.

Chen noted that its US$60 million waste power generation project in the eastern Chinese city of Suzhou will commence operation next year.

And the sewage treatment project in Qingdao of East China's Shandong Province has begun to record earnings this year.

Qingdao Sewage has been in operation since January, generating an average 400 million yuan (US$48 million) revenue each month.

The overall division of environment protection business is expected to yield a 10 per cent return.

The weighting of the environment protection business will increase gradually, added Chen.

The share of environmental business in total turnover doubled to 4 per cent last year and is expected to increase further in the future.

There are a number of environmental projects under negotiation along the coastal areas.

The group is in a good financial shape to fund new investment projects, Chen said.

The company currently holds HK$585 million cash in hand after disposing its 25 per cent interest in a property project, Shanghai Kerry Everbright city.

It will use HK$450 million (US$57.7 million) to develop the environmental protection business.

The current ratio shot up nearly six times to 716 per cent and cash on hand surged by 239 per cent to HK$585 million as a result of the disposal.

Everbright International yesterday reported a 53 per cent rise in net profit to HK$86 million. But turnover fell by 22 per cent to HK$65 million, mainly due to the disposal of its timber operation in the previous year.

Excluding the disposal of the timber operation, turnover would have increased by 90 per cent.

The infrastructure sector continued to be the largest revenue contributor and its share in the overall turnover had risen to 72 per cent from 58 per cent in 2003.

Shenzhen Mawan power plant contributed HK$72.63 million of income and HK$98 million cash flow to the group and it will remain the group's key income source this year, Chen said.

While shifting its focus on environmental business, the group is actively shedding its property investment.

The share of property investment in the total turnover fell to 24 per cent from 40 per cent over the past year.

It saw a surplus of HK$14.79 million due to rebounding property prices with HK$13 million coming from Hong Kong investment properties and the remaining HK$1.79 million from the mainland.

The board declared a total dividend of one HK cent total dividend for 2004, the first time in six years.

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