China Water Affairs : Annual Report 2022/23

中國水務集團有限公司

China Water Affairs Group Limited

Stock code : 855

Annual Report

2023

* For identication purposes only

Annual Report 2023 China Water Affairs Group Limited

1

	Contents
	Pages
Corporate Information	2
Financial Highlights	4
Chairman's Statement	9
Directors' and Senior Management Biographical Details	16
Corporate Governance Report	20
Directors' Report	31
Independent Auditor's Report	42
Consolidated Income Statement	50
Consolidated Statement of Comprehensive Income	51
Consolidated Statement of Financial Position	52
Consolidated Statement of Changes in Equity	54
Consolidated Statement of Cash Flows	56
Notes to the Consolidated Financial Statements	59
Particulars of Properties Held for Investment	163
Particulars of Properties Held under Development	164
Particulars of Properties Held for Sale	165
Five-Year Financial Summary	166

2	China Water Affairs Group Limited Annual Report 2023

Corporate Information

BOARD OF DIRECTORS

Executive

Mr. Duan Chuan Liang (Chairman) Ms. Ding Bin

Ms. Liu Yu Jie (subsequently re-designated to non-executive director with effect from 12 April 2023)

Mr. Li Zhong

Mr. Duan Jerry Linnan

Non-executive

Mr. Zhao Hai Hu

Mr. Makoto Inoue

Ms. Wang Xiaoqin

Independent Non-executive

Mr. Chau Kam Wing

Mr. Siu Chi Ming

Ms. Ho Ping

Ms. Zhou Nan

Mr. Chan Wai Cheung Admiral

(resigned on 1 December 2022)

AUDIT COMMITTEE

Mr. Chau Kam Wing (Chairman of committee) Mr. Siu Chi Ming

Ms. Ho Ping

Ms. Zhou Nan

Mr. Chan Wai Cheung Admiral (resigned on 1 December 2022)

REMUNERATION COMMITTEE

Mr. Chau Kam Wing (Chairman of committee) Mr. Siu Chi Ming

Ms. Ho Ping

Ms. Zhou Nan

Mr. Chan Wai Cheung Admiral (resigned on 1 December 2022)

NOMINATION COMMITTEE

Mr. Duan Chuan Liang (Chairman of committee) Mr. Chau Kam Wing

Mr. Siu Chi Ming Ms. Ho Ping

COMPANY SECRETARY

Mr. Lie Chi Wing, FCCA, CPA, CFA

AUTHORISED REPRESENTATIVES

Mr. Duan Chuan Liang

Mr. Lie Chi Wing

REGISTERED OFFICE

Clarendon House

2 Church Street

Hamilton HM11

Bermuda

HEAD OFFICE AND PRINCIPAL PLACE OF BUSINESS

Suite 6408, 64/F

Central Plaza

18 Harbour Road

Wanchai

Hong Kong

HONG KONG BRANCH SHARE REGISTRAR

Tricor Tengis Limited

17/F, Far East Finance Centre

16 Harcourt Road, Admiralty

Hong Kong

LEGAL ADVISERS

As to Bermuda law

Conyers Dill & Pearman

AUDITOR

PricewaterhouseCoopers

Certified Public Accountants

Registered Public Interest Entity Auditor

PRINCIPAL BANKER

Asian Development Bank

Australia and New Zealand Banking Group Limited

Bank of Communications (Hong Kong) Limited

Bank of East Asia

China CITIC Bank

WEBSITE

http://www.chinawatergroup.com

STOCK CODE

855

Annual Report 2023 China Water Affairs Group Limited

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Corporate Information

City water supply business

• Serving an estimated population of more than 30 million people
• Water pipelines of approximately 148,000 km

Pipeline direct drinking water supply business

• Serving an estimated population of approximately 4.5 million people

Environmental protection business Sewage treatment operation and construction (including water environmental

renovation construction projects)

Drainage operation

Heilongjiang

				Inner Mongolia	Jilin
Xinjiang
						Liaoning
Gansu					Beijing
					Tianjin
	Ningxia		Shanxi	Hebei
Qinghai			Shandong
	Shaanxi	Henan	Jiangsu
	Sichuan				Anhui	Shanghai
Tibet		Hubei
Chongqing
				Zhejiang
		Hunan	Jiangxi
	Guizhou
				Fujian
	Yunnan
	Guangxi	Guangdong

Hainan

4	China Water Affairs Group Limited Annual Report 2023

Financial Highlights

	2023	2022
	HK$'000	HK$'000	Change
RESULTS HIGHLIGHTS
Revenue	14,194,953	12,949,828	9.6%
Gross profit	5,346,297	4,962,200	7.7%
Profit for the year	3,088,345	2,977,129	3.7%
Profit for the year attributable to owners of the Company	1,856,786	1,893,573	-1.9%
Basic earnings per share (HK$)	1.14	1.17	-2.6%
Diluted earnings per share (HK$)	1.14	1.16	-1.7%
Total dividend per share (HK cents)	34	34	-
- Interim dividend (HK cents)	16	16	-
- Final dividend (HK cents)	18	18	-
	2023	2022
	HK$'000	HK$'000	Change
BALANCE SHEET HIGHLIGHTS AND RATIOS
Total assets	61,164,288	57,064,442	7.2%
Total liabilities	39,992,154	36,581,698	9.3%
Net assets	21,172,134	20,482,744	3.4%
Net assets per share1	7.96	7.95	0.1%
Current ratio	0.84	0.86	-2.3%
Gearing ratio2	65.4%	64.1%

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