CNTY Reports 2019 Q1 Results: Revenue Increases Tenfold with Urban Service Section and Overseas Businesses Booming

On April 28th 2019, China Tianying(CNTY) reported its Q1 results, the first consolidated quarterly report after Urbaser’s acquisition. This buyout contributed astonishingly to the Chinese company. According to the report, in the first quarter of 2019, CNTY’s revenue reached RMB3,259 million, an yearly increase of 1016.71%; profit attributable to the parent stood at RMB79,942,400, an yearly increase of 246%; basic EPS achieved RMB0.0385, up 125.15% compared with the same period last year.

With Waste-to-Energy(WTE) plant as its core business, CNTY has started moving upstream to waste classification, collection, transference and comprehensive urban services. The acquisition of Urbaser has largely enhanced its capabilities. Looking forward, CNTY aims to becoming a world leading urban service provider. To that end, the company has been expanding aggressively both in China and abroad while optimizing its business structure. 

WTE section grew steadily

During China’s 13th five year plan, its WTE industry is expected to reach RMB243.8 billion in size, with highly positive prospects. As a leading urban service provider in China, CNTY’s WTE business has grown rapidly under the trend. At present, it operates ten such projects in Jiangsu, Fujian, Shandong, Shenzhen, Jilin and Anhui. Phase 2 and Phase 3 construction of many projects has been completed and integrated to the grid. In 2018, its WTE section’s revenue rose 27.19% to RMB718 million, exceeding the profit target by 33.21%.

Urban service business expanded rapidly

Under its business optimization plan, CNTY prioritized the urban service section in 2018, which made RMB363 million in revenue, up 276.07% from RMB96.54 million from 2017, making it the fastest growing part of the company in 2018.

135 contracts for integrated urban services and waste classification were awarded in 2018, with a backlog of RMB4.55 billion. With projects in dozens of provinces, autonomous regions and municipalities, CNTY has established a strong presence in the urban service sector.

While expanding to new cities, CNTY had been building a smart urban service management network. With smart devices and terminals, workers, vehicles and equipment involved in the service can be inter-connected. The combination of online management and on-site operation has greatly improved the efficiency and quality in providing urban services.

Industrial synergies started to emerge

On January 1st 2019, the equity alteration process for Jaingsu Dezhan was officially finalized and it became CNTY’s fully-owned subsidiary. Urbaser, a world’s environmental protection giant, then was consolidated into CNTY and contributed greatly to the group’s performance growth.

This consolidation will be extremely useful in terms of strengthening CNTY’s overseas presence. By learning from Urbaser’s experience in overseas expansion and operation, CNTY can expect to secure superior overseas projects and achieve fast progress in international business. At the same time, Urbaser will be able to enter the Asian market much easily. By doing so, CNTY can expect to become a globally competitive industry giant through the synergy of two platforms and two brands.

CNTY plans to enter the international market with the help of Urbaser’s global presence and influence, which, in turn, will help optimize its domestic business and projects. CNTY’s goal is to achieve a seamless business landscape across the globe with two brands expanding simultaneously. Additionally, CNTY will also use Urbaser’s advanced technologies and project management expertise to enter the entire environmental protection supply chain in the hope that both project performance and efficiency be further improved. Achieving such goals will also accelerate its international plans.

Building model projects overseas

As the Belt and Road Initiative reached more countries, CNTY’s exploration in countries along the belt and the road also achieved great success. The company has won WTE project contracts in Phu Tho(Vietnam), Thanh Hoá(Vietnam), Hanoi(Vietnam) and Tuas(Singapore).

The Hanoi project was signed in August 2018. When completed, it can handle 4000 tonnes of waste per day. CNTY has made it a key focus for 2019 in hope of building it to be a model project among all its international businesses.