Citic Envirotech Q1 profits soared 140.5% to $39.33m

It said it will benefit from China’s strict policies on pollution.

Citic Envirotech Limited (CEL) popped the champagne in Q1 as its net profit jumped 140.5% YoY from $16.35m to $39.33m.

According to its financial statement, revenue soared 148.1% YoY to $247.12m, mainly due to higher engineering revenue (+126% YoY) at $121.9m. Other income crashed 44.4% to $8.3m due to the government grant of $12.8m in the prior period.

Materials purchased, consumables used, and subcontractors’ fees increased jumped by a whopping 148.6% to $168.2m. “The increase was consistent with the increase in engineering revenue and membrane system sales from $73.5m to $212.8m,” the company commented.

Finance costs jumped 50.4% to $9.3m mainly due to additional finance costs arising from the new bank borrowings.

CEL noted that China’s stringent policies on pollution protection will continue to generate new opportunities for them. “The group continues its strong momentum in securing more environmental projects and is on track to deliver comprehensive and sustainable solutions to tackle environmental pollution,” it concluded.