SINGAPORE (July 25): CITIC Envirotech posted a 7.8% drop in 2Q earnings ended June to $21 million, from $22.8 million a year ago.
Revenue in 2Q slipped 4.0% to $134.4 million, from $140.0 million a year ago.
The decline was mainly due to a 46.7% decrease in revenue from its membrane business to $9.0 million as a result of the completion of a major project.
This was partially mitigated by a marginal 0.1% increase in engineering revenue to $78.6 million, and a 4.9% increase in treatment revenue to $46.8 million.
Cash and cash equivalents stood at $539.6 million as at June 30.
Looking ahead, CITIC says it is “on track in its growth and expansion in the water sector and is strategically expanding into new business segments.”
It adds that demand for industrial wastewater treatment continues to increase on the back of China’s economic growth and the government’s commitment towards environmental conservation and pollution control.
The group says it is “confident that it is well positioned to further its market share in the water sector, especially in the industrial water segment.”
Shares of CITIC closed 1 cent lower at 76 cents on Tuesday.
