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Extracted from Annual Report 2017
On behalf of the Board of Directors, it is my pleasure to present to you the report of CITIC Envirotech Ltd ("CEL", "Company", "Group") for the financial year ended 31 December 2017.
2017 has been another record year for CEL, marked by strong financial performance and breakthroughs in new business segments. We are proud to report that in 2017, CEL registered its highest revenue of $908.8 million and net profit-after-tax of $127.3 million. This strong performance is a testament to the Group's quality asset portfolio, competitive edge in proprietary membrane technology, cost-effective operations and project financing expertise.
Following the 19th Communist Party of China National Congress in Beijing in October 2017, the Chinese government declared that more efforts will be put into improving and building a "Beautiful China".
The Party's latest vision on environmental regulation focuses on promoting green development initiatives, solving prominent environmental problems, intensifying the protection of ecosystems and reforming the environmental regulation system. Environmental management and protection continues to be urgent issues that need to be addressed by China, and this translates to immense growth opportunities for the environmental protection industry.
In 2017, the Group was able to ride on a strong momentum of order book to secure contracts valued in aggregate of more than RMB10 billion worth of projects, including winning its largest project to-date in Lanzhou City, the capital of Gansu Province, to design and build a 400,000 m3/day underground wastewater treatment plant using CEL's proprietary Membrane Bioreactor ("MBR") technology. The Lanzhou project is CEL's new milestone on the Silk Road Economy Belt and echoes China's Belt and Road Initiative ("BRI").
Besides securing more projects in its water investment as well as membrane-based engineering businesses, the Group has also embarked on providing more comprehensive environmental services in river restoration, hazardous waste treatment, sludge management and integrated environmental services. We anticipate that these new business segments will form the next growth driver and contribute positively to the revenue for the Group in the coming year.
CEL is currently the market leader in China's vast industrial wastewater treatment industry with outstanding track record in using membrane technology. The Group will continue to drive operational excellence in all aspects of its business and operations, and to continue to invest in research and development to up the ante in providing innovative solutions to our clients.
Looking ahead, with the Chinese government's steadfast commitment towards environmental conservation and pollution prevention, the Group sees tremendous opportunities to further increase its market share in the environmental protection space. CEL aims to leverage on its strong track record as a technology-driven Company with solid core competencies to achieve its vision to become one of the top global environmental protection players.
On behalf of the Board of Directors, I would like to thank our shareholders, customers and business partners for your continued trust and support for CEL. In view of the Group's healthy financial position during the year in review, and to show our appreciation to our loyal shareholders, the Board has proposed a final dividend of 1.5 Singapore cents per ordinary share for the financial year.
Lastly, I would like to extend my heartfelt gratitude to our Board of Directors, the management team led by Dr Lin Yucheng, Group Chief Executive Officer and all the staff for their strong commitment, unwavering dedication and hard work rendered during the year.
Mr Hao Weibao