Sunday, April 18, 2021
 
Columnist
Martin Hennecke
 
TIANYE WATER
HKEx Stock Code : 00840 
 
Corporate Profile
The Group is engaged in the design, manufacturing and sales of drip films, PVC/PE pipelines and drip assemblies used in agricultural water saving irrigation system, and is also engaged in the provision of installation services of water saving irrigation system for its customers.

Business Review - For the year ended December 31, 2012

For the year ended 31st December, 2012, turnover of the Group was approximately RMB762,837,000, an increase of approximately 10.49% from approximately RMB690,416,000 for the year ended 31st December, 2011.

The change in turnover for the year ended 31st December, 2012 was mainly attributable to the effect of an expansion of farmland fitted with the water saving irrigation products of the Group. For the year ended 31st December, 2012, sales of drip films and drip assemblies increased by approximately 20.91% to approximately RMB477,943,000, while sales of PVC/PE pipelines decreased by approximately 5.33% to approximately RMB279,398,000. At the same time, the sales volume of drip films and drip assemblies increased from approximately 30,667 tonnes for the year ended 31st December, 2011 to approximately 36,307 tonnes for the year ended 31st December, 2012, while the sales volume of PVC/PE pipelines increased from approximately 40,483 tonnes for the year ended 31st December, 2011 to approximately 41,027 tonnes for the year ended 31st December, 2012. The increase in the sales volume of the Group's products was mainly attributable to the growth in demand for water saving irrigation system in the PRC.

Business Outlook - For the year ended December 31, 2012

During the year, the Chinese government continued to implement its encouragement policies for irrigation and water conservancy industry. Along with the progressive rollout of agricultural water-saving irrigation projects and the gradual increase of local involvement in agricultural water conservation activities in mainland China, the competition in the industry intensified, leading to the lower profit margin of the Group. Meanwhile, the Group is relatively far away from the interior provinces of China, whereby the accompanying higher cost of sales had crimped the profit of the Group in the market. In the opinion of the Directors, the agricultural water-saving irrigation market will maintain its rapid growth in the next five years. Hence, the Group is going to accelerate the construction progress of its production bases in the interior provinces, in order to reduce logistics cost and improve profitability by capitalising its technological advantages as an integrated agricultural water-saving provider.

Source: Tianye Water (00840) Annual Results Announcement
Chairman Li Shuang Quan Issued Capital (shares) 202M
Par Value RMB 1 Market Capitalisation (HKD) 130M
 
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