CHANGZHOU, China--(BUSINESS WIRE)--WELLE Group has announced its annual results for 2019. Highlights are in the summary below. To read WELLE Group’s annual results in greater detail, click here.
Zong Tao, WELLE CEO, commented:
“WELLE Group has achieved solid revenue and profit growth in 2019, with all targets set have been achieved or surpassed. Our core business segments: water treatment and solid waste treatment continued to experience strong growth benefiting from national policy and boom in garbage classification. The establishment of group, which is a new management structure adapted to our ambition has been put in place, and it enhanced the management system and the company's operation and management efficiency. Thanks to performing disciplined execution of projects, we had a strict cost control which translated into strong profit growth. As a leader in environment protection, WELLE group fully benefits from rising demand from both industrial and municipal clients and we believe we will emerge from these opportunities and be ready to capture more growth in the future. We are well placed to prepare for a better and more sustainable future.”
BUSINESS HIGHLIGHTS
- 2019 revenue reached RMB 2.73 billion (US$ 386 million) compared with RMB 2.06 billion (US$ 292 million) in 2018, an increase of 32.24% YoY. Revenue growth benefited from solid commercial momentum, and volumes grew significantly in the core business segments: water treatment (RMB 916 million, an increase of 44.26%) and solid waste treatment (RMB 716 million, an increase of 153.12%).
- Net profit attributable to shareholders was RMB 316 million (US$ 44 million), an increase of 36.30% YoY compared to RMB 232 million (US$ 33 million) in 2018; Net profit was up 30.08% to RMB 321 million (US$ 45 million) compared with RMB 247 million (US$ 34 million) in 2018, driven by the efforts of the teams to improve the operational performance.
- Diluted earnings per share was RMB 0.4, up 37.93% compared with RMB 0.29 in 2018, and return on equity was 8.44%, an increase of 2.11%.
- Cash flow from operating activities was RMB 2.67 billion (US$ 377 million), an increase of 56.01% compared to RMB 1.71 billion (US$ 242 million) in 2018. Cash collection was RMB 2.55 billion (US$ 359 million), up 60.33% YoY compared to RMB 1.59 billion (US$ 224 million) in 2018. Due to the strict implementation of the cash collection work especially for old projects, the group continuously improved the company's operating cash flow which provided strong support for the company's business operation and performance.
- Total asset reached RMB 8.11 billion (US$1.15 billion), a growth of 12.37% YoY compared to RMB 7.21 billion (US$1.02 billion) in 2018.
BUSINESS AND STRATEGIC UPDATES
- Continue to focus on the core business of organic waste utilization and leachate treatment, and expand the efforts in biogas engineering, industrial energy conservation and VOC pollution control;
- Comprehensive digital upgrading of the group: realize digitalization of operation and management, digitalization of the life cycle of the project, and promotion of intelligent environmental protection business;
- Improve cash collection which generates significant net free cash flow to allow the company to benefit from a very solid balance sheet;
- Strengthen the control of project implementation and operation to accelerate the cost savings;
- Improve the collectivized management system and strengthen the management systems and tools of subsidiaries so as to improve the efficiency of operations and management;
- By virtue of the Industrial Research Institute of the group, further improve the R&D management system, comprehensively plan and coordinate the group's R&D resources, and enhance coordination among the group's members.
These guide posts that will help us achieve our vision for 2020 to:
- Continued solid revenue growth of RMB 4.00 billion (US$ 558 million);
- Net profit up to RMB 400 million (US$ 55.8 million);
- New contracts with value of RMB 5.00 billion (US$ 698 million);
- Cash collection of RMB 3.50 billion (US$ 488 million).
Forward-Looking Statements
In 2019 WELLE Group enjoyed solid growth as in previous years. Looking forward, WELLE is confident that environmental protection market will continue growth and the group is well placed to benefit from the increasing market demand. WELLE will seize the favorable opportunities of environmental protection policies and plans, continue to develop main business in organic waste utilization.
About WELLE
WELLE Environmental Group is an energy saving and environmental protection enterprise with core technology and continuous innovation ability, possessing over 60 domestic and overseas subsidiaries. The group’s business scope covers three areas: urban environmental management, agricultural and rural environmental management and industrial energy saving and environmental protection. As a listed environmental company, WELLE occupies the leading position in food and kitchen waste treatment, waste leachate treatment, biogas and bio-methane generation, VOC recovery and other market segments.
