Extracted from Annual Report 2015
On behalf of the Board of Directors, it is my pleasure to present to you the annual report of CITIC Envirotech Ltd. ("CEL", "Company", "Group") for the financial period from 1 April 2015 to 31 December 2015.
The Company witnessed a new milestone this year when CITIC Environment Investment Group Co., Ltd ("CITIC Environment") and KKR China Water Investment Holdings Ltd ("KKR") became major shareholders of the Company in April 2015 through a Voluntary General Offer. The last few months saw a period of consolidation where strong partnership and co-operation was forged between the Company and the new shareholder, CITIC Environment.
As CITIC Limited’s platform for all water-related businesses, CEL was able to make good headway during the year in expanding its asset portfolio and membrane manufacturing capabilities. It also strengthened its advanced membrane technology systems to reinforce its position as a market leader.
In the coming year, CEL will further leverage on its strong track record and core expertise by engaging in strategic and large-scale merger and acquisition activities to expand its asset portfolio, particularly in the chemical and petrochemical sectors and innovative water technology.
Following the successful launch of the Company’s Medium Term Notes (MTN) in April 2015 and Perpetual Securities Program in November 2015 where CEL raised a total of close to $500 million, CEL will continue to explore various funding options to lower its cost of funding and optimize the capital structure of the Company. CEL will also explore various options to improve the public float and hence the liquidity of its share trading volume with the objective of bringing more value to its shareholders.
In the international arena, opportunities abound for the Company to expand its footprint outside China under the One-Belt-One-Road initiative. As the flagship water treatment platform of CITIC Limited, CEL will take this excellent opportunity to participate in new water infrastructure development projects along these trade routes.
Within China, it is expected that the forthcoming 13th 5-year plan will see the Central Government adopting even more stringent environmental directives and policies, including putting more investments and resources into the environmental sector. These catalysts bode well with the ambitious goals of CEL to seize the opportunity to become one of the top global water players.
I would like to take this opportunity to thank our shareholders for their strong support of the Company. 2016 will be an exciting year for the Company to capitalize on the opportunities presented in the environmental sector of China. I invite you to come along this journey with us to participate in the growth of the Company.
I would also like to extend my heartfelt thanks to our Board of Directors, the management team led by Dr Lin Yucheng, Group Chief Executive Officer and all the staff for their unwavering dedication and hard work rendered during the year.
Mr Hao Weibao