China sewage treatment firm posts surging profit

BEIJING - Beijing Originwater Technology, a Chinese waste water treatment company, reported surging profits in H1, amid strong government efforts to tackle water pollution.

The company's net profit increased 97.73 percent from a year ago to 533.85 million yuan (nearly $80 million) in January-June, according to a mid-year report released Tuesday. After the deduction of one-time gains, the growth rate retreated to slightly higher than 20 percent, still an enviable pace in the industry.

Revenue rose 23.34 percent year on year to 2.9 billion yuan in the period.

Originwater attributed the performance to rapid business expansion across the country, technological advantages and better control over costs and other expenditure.

The company secured water treatment deals in nearly 200 more Chinese cities in H1 via a new public-private partnership financing model, on top of its existing presence in major regional markets, including Beijing, Yunnan and Zhejiang.

China's moves to rein in water pollution benefited Originwater's business as higher water quality requirements provided opportunities for it to step up expansion and channel more energy into research and development, the company said.

Encouraged by the profit increase, Originwater shares opened 1.45 percent higher on the Shenzhen bourse Tuesday, despite a bearish market.

Founded in 2001, Originwater uses membrane technology to provide solutions to polluted water, water shortages and drinking water safety.