Asia Environment Holdings Ltd enjoys a most fruitful year in 2007 since the Group
was listed, earning a better annual profit by 27% than the year before. In the
meanwhile, the Group is achieving tremendous progress in investing, constructing,
and expanding sales abroad, which also helps the Group prepare for further
development.
REVIEW on 2007
The Group undertakes seven BOT projects with a
total business of RMB 548 million, while the total
investment is RMB 160 million in the year of 2007.
Four of the main projects are: Suzhou Fenhu 50,000
tons/d sewage treatment project; the Shanghai
Jinshan 25,000 tons/d sewage treatment project;
Changsha WangCheng 40,000 tons/day sewage
treatment plant and JiangXi Jingdezhen 40,000 tons/
day sewage treatment plant. At the end of the year,
the Group became the successful tenderer for the project of Xining wastewater treatment plant (BOT
+ TOT) with a total investment of RMB 240 million,
which is the first major BOT + TOT project the Group
undertakes.
In order to maximize profi ts, the Group manages its
construction risks through optimizing Design Plan
and effective cost control. Last year, the HongGuTan
sewage treatment plant in Nanchang passed the
inspection and certifi cation tests by the Nanchang
government and satisfi ed a pre-requisite condition for
commercial operations. The Nantong construction
project is almost completed and is expected to be
in use in 2008. The civil works project of Jingdezhen
is completed. Besides, Jiangning Nanjing, Shanghai
Jinshan, Suzhou Fenhu, Changsha WangCheng
have also started construction projects.
In 2007 the Company has also made major achievements in capital fund raising after successfully
making two additional share placements. In addition, International Finance Corporation ("IFC")
became the Company's partner and will provide loans for the funding of the Company's future
projects. This not only optimize the structure of the shareholders, but also enhance our capacity of
investment and financing in water infrastucture business.
We also have made certain achievements in overseas sales last year, laying a good foundation for
expanding our future overseas market.
Shareholder Returns
As the company has achieved better results in 2007, the company will propose SGD 2 cents per
share (S$0.02) dividend to shareholders.
The Company will continue to undertake more and better water projects. We also wish to achieve
certain progress in solids and sludge treatment for further expanding of the business of the
Company.
FY2006 Outlook
The Group looks forward to another good year in 2007. In 2007, the Group will press forward with the
completion of the Nantong project, by the end of the year. Concurrently, the Pizhou project is also expected
to be completed in 2007.
We will continue to improve or project management and explore alternatives to speed up the
construction progress.
In 2008, most of the outstanding projects will be completed and will commence operation.
The Group has been operating in China as an integrated water and wastewater treatment solutions
provider. With an in-depth understanding of the industry, combined with its technical and project
capabilities, the Group is well placed to take the opportunities offered by the growing industry in
China as well as in the Southeast Asia.
Even though 2008 will be a very challenging year for the Group. The management is confident to
achieve our goals in 2008.
Acknowledgements
We appreciate all the employees and the management for their hard work and great contribution.
In addition, we would like to thank all the strategic investment partners, financing organizations,
banks, shareholders for their trust and support to us.
Last but not the least, we would like to thank our fellow Directors on the Board for their involvement
and guidance.