[Caihua News] China Water Affairs (00855.HK) announced that for the six months ended September 30, 2021, the group recorded income of about HK $6.473 billion, an increase of 26.14% over the same period last year; profit attributable to shareholders was about HK $1.02 billion, an increase of 23.38% over the same period last year; basic profit per share was HK63.61 cents; and an interim dividend of HK16 cents per share was paid.

During the period under review, the Group's "Urban Water supply Operation and Construction" and "Environmental Protection" divisions recorded steady growth. The total revenue of the "Urban Water supply Operation and Construction" and "Environmental Protection" divisions increased from HK $4.74 billion to HK $5.742 billion, representing a steady and sustained growth of 21.1%, mainly due to the success of the Group's business development strategy. Growth is achieved through the acquisition of more construction and connection projects, operational efficiency improvements, higher water supply and sewage charges, and a number of mergers and acquisitions.

As at 30 September 2021, the total amount of cash and cash equivalents and secured deposits of the Group was approximately HK $5.113 billion (31 March 2021: approximately HK $4.416 billion). The capital-liability ratio (percentage of total liabilities to total assets) on September 30, 2021 was 64.1% (31 March 2021: 64.0%). As at 30 September 2021, the Group's current liabilities exceeded current assets of approximately HK $844 million (31 March 2021: approximately HK $1.67 billion). The main reason is that the outstanding principal amount of US $150 million (about HK $1.17 billion) in 2017 bills will mature within a year. After taking into account internal financial resources, available loan financing, the issuance of US $200 million of senior notes in May 2021 and the completion of partial redemption, the directors of the Company are of the view that the Group will have sufficient working capital to meet all its financial obligations due in the foreseeable future.