Everbright International Announces 2009 Interim Results

Turnover Increased 40% To HK$1,101,610,000
EBITDA Increased 31% To HK$379,267,000
Profit Attributable to equity shareholders increased 47% to HK$196,981,000

Grasping Opportunities in Alternative Energy Development

To create Another Driver for Sustainable Growth

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FINANCIAL HIGHLIGHTS (unaudited)

	For the six months ended
	2009	2008
	HK$'000	HK$'000	Change
Turnover	1,101,610	788,711	40%
Gross Profit	421,477	311,414	35%
EBITDA	379,267	288,683	31%
Profit attributable to equity shareholders	196,981	134,208	47%
Basic earnings per share (HK cents)	6.26	4.28	46%
Interim dividend per share (HK cent)	1	0.6	67%

China Everbright International Limited ("Everbright International" or "the Group"), today announced its unaudited interim results for the six months ended 30 June 2009.

In 2009, the Group established two strategies - "shifting focus from developing individual projects to the extension of environmental industrial chain" and "transforming from a traditional environmental company into a new environmental protection enterprise that employs top-notch techniques and high-end technologies" and followed the principle of "One centre with two supporting wings to develop the three core business segments". Guided by these, the Group has put its businesses into three segments - Environmental Energy, Environmental Water and Alternative Energy. Currently, the Group has 26 environmental protection projects commanding a total investment of approximately RMB6,640,871,000. The total designed annual processing capacity of the Group is approximately 2,600,000 tonnes of household waste, approximately 20,000 m³ of other waste, capable of supplying on-grid electricity of approximately 763,000,000 kilowatt-hour a year. The designed daily treatment capacity of all the waste water treatment projects is approximately 1,500,000 m³. During the period under review, turnover of environmental protection business reached HK$1,046,208,000, an increase of 44% when compared with the same period in 2008 and accounting for 95% the Group's total turnover. EBITDA amounted to HK$345,080,000, an increase of 40% when compared with the last corresponding period. EBITDA on infrastructure amounted to HK$52,745,000, an increase of 6% when compared with the last corresponding period.

In the first half of 2009, the environmental protection business of the Group continued to grow. Following the completion of construction and commencement of commercial operation of Changzhou Waste-to-energy Project, Suzhou Waste-to-energy Project Phase II, Jinan Waste Water Treatment Plant No. 3, Zibo Zhoucun Waste Water Treatment Project as well as the completion of upgrade work for Jinan Waste Water Treatment Plant No. 1 and No. 2, four Jiangyin City Waste Water Treatment Plants and Binzhou Boxing Waste Water Treatment Plant, the Group registered significant increase in turnover and operating profits. With the aforementioned projects completed construction and became operational in the first half of 2009, both construction service revenue and operating service revenue increased. During the period under review, the consolidated turnover of the Group amounted to HK$1,101,610,000, representing an increase of 40% from HK$788,711,000 in the same period last year. EBITDA was HK$379,267,000, representing a 31% growth from HK$288,683,000 in the first half of last year. Profit attributable to equity shareholder increased by 47% to HK$196,981,000. Basic earnings per share for the first half of 2009 were HK6.26 cents, HK1.98 cents more than HK4.28 cents in the last corresponding period.

Environmental Energy

Environmental energy segment comprises 9 projects located in Suzhou, Yixing, Jiangyin, Changzhou, Zhenjiang of Jiangsu Province, and Jinan of Shandong Province, of which Jinan and Zhenjiang projects have been obtained and won the tenders after the review period respectively. During the period under review, the environmental energy projects of the Group together processed 697,000 tonnes of household waste, 7,200 m³ of solid waste and generated on-grid electricity of 146,756,000 kilowatt-hour, representing an increase of 75%, 11% and 86% as compared with the last corresponding period. The projects brought an EBITDA of HK$157,857,000, representing an increase of 12% against the same period last year.

Environmental Water

The environmental water segment is made up of 15 projects located in Qingdao, Zibo, Jinan, Boxing, Zhoucun of Shandong Province, and Jiangyin of Jiangsu Province. During the period under review, the environmental water projects treated 156,474,000 m3 of waste water, representing a decrease of 8% as compared with the same period last year because of the temporary decrease of industrial sewage in Zibo city and the reconstruction of Xiaoqinghe in Jinan city. With the adjustment of waste water treatment fees in Qingdao and Jinan Projects during the period under review, the EBITDA contribution of the projects increased by 80% to HK$181,803,000 as compared with the last corresponding period.

Alternative Energy

For the period under review, the alternative energy sector mainly consists of Suzhou Waste Landfill Methane-to-energy Project ("Suzhou Methane Project"). The Group is now also developing the leachate methane-to-energy projects in Suzhou, Yixing, Changzhou and Jiangyin and the Qingdao Sludge Methane-to-energy Project. During the period under review, Suzhou Methane Project supplied 9,631,000 kilowatt-hour of electricity to the power grid and brought an EBITDA of HK$5,420,000, representing an increase of 16% against last corresponding period. In order to be in line with the global trend of developing low carbon economy and respond to the government's call of developing alternative energy, the Group will make alternative energy development as one its three core businesses. Besides methane-to-energy projects and waste water heat pump project, the Group also wishes to develop wind, solar and biomass energy projects.

Environmental Protection Research and Development

During the period under review, the Group and the Shandong Academy of Sciences set up a joint research institute in Beijing. The move marked the beginning of cooperation between the environmental protection industry and research institutes in the PRC on equipping the industry with domestically fabricated equipment and develop proprietary core technologies. The Group will further seek to commercialize patented technologies and strive to develop into a new environmental protection enterprise that employs "top-notch techniques and high-end technologies".

Mr. Chen concluded, "Environmental Energy and Environmental Water businesses are the Group's core projects with developing advantages, which we have built up an excellent brand image and reputation in China. In the near future, alternative energy segment will be the focus of the Group. In recent years, the PRC government implemented and announced the "Law of Renewable Energy" and "Middle and Long Term Program of Renewable Energy Development", the development of alternative energy is highly emphasized. Riding on the existing industry chain and market position that Everbright International possesses, and years of experience in project construction, we are confident in our success in the alternative energy field. The Group will continue to strive for more diversified projects, following the principle of "implementing projects with one success followed by another", and boosting the core competency and profitability through enhancing research and development capabilities, and ultimately bring sustainable returns to equity shareholders."