Beijing Enterprises Water Profit Jumps 44% as China Sales Surge

Mar 27, 2014 9:08 am ET

March 27 (Bloomberg) -- Beijing Enterprises Water Group Ltd., the biggest publicly traded water-treatment systems developer in China, reported a 44 percent increase in 2013 profit on “rapid growth” in sales and construction services.

Net income rose to HK$1.08 billion ($139.2 million) from HK$750.5 million a year earlier, the company said today in a filing to the Hong Kong stock exchange. Sales surged 72 percent to HK$6.41 billion as environmental work, infrastructure upgrades and China’s need for improved water sources increased.

The earnings came as 20 million Beijing residents were warned to stay inside for a fourth day because of dangerously high smog levels. The city issued an alert calling for measures such as spraying water on construction sites and reduced excavation work to curb dust. China’s contaminated water, soil and food and drug safety issues have prompted public worries.

Beijing Enterprises Water shares fell 2.8 percent to close at HK$4.82 in Hong Kong trading today before the results were announced. The stock has doubled the past year.