Three Gorges project builder posts surging profit in 2017

Source: Xinhua| 2018-03-31 00:19:37|Editor: yan
Video PlayerClose

WUHAN, March 30 (Xinhua) -- China Gezhouba Group Co. (CGGC), the main builder of the Three Gorges project, reported surging net profit in 2017 thanks to the construction giant's restructuring and booming overseas business.

The group's net profit surged 37.9 percent to 4.68 billion yuan (743 million U.S. dollars) last year, up from 3.39 billion yuan in 2016, the state-owned company said in a filing with the Shanghai stock exchange.

Meanwhile, its revenue rose 6.54 percent year-on-year to 106.8 billion yuan.

Environment-related sectors, which generated 26.7 billion yuan in revenue last year, up 60.1 percent, have become new growth poles, the company said.

The company started entering environment-related sectors five years ago as China's efforts to curb industrial overcapacity capped most of its traditional businesses, including construction, real estate and cement manufacturing.

CGGC, headquartered in the central Chinese city of Wuhan, has pursued acquisitions across China as part of a restructuring plan to make itself China's leading player in waste materials recycling and environmental improvement services.

Currently, it is capable of disposing a combined 9.2 million tons of waste materials a year.

The company said technology that used household waste to make cement for highway and bridge construction with no ash residue and additional pollution would become a cash cow.

By the end of last year, the company's three upgraded cement plants in central China's Hubei Province had a total annual processing capacity of 400,000 tons of garbage.

Overseas business contributed 20.6 billion yuan to CGGC's total revenue in 2017, up 18.4 percent from a year earlier.

The company inked construction deals worth more than 226 billion yuan last year. Overseas deals amounted to a record 80.6 billion yuan, which registered a yearly rise of 14 percent and made CGGC the sixth-ranked Chinese firm by value of new overseas deals in 2017.

New major contracts included a 10-billion-yuan natural gas processing plant project in Russia, and a 38.3-billion-yuan Mambilla hydropower project in Nigeria, the largest infrastructure project in the country.

CGGC has overseas outlets in 99 countries, 33 of them in countries along the Belt and Road. Among its 106 under-construction overseas projects, the biggest are the 21-billion-yuan Neelum-Jhelum hydropower plant in Pakistan, the 29.6-billion-yuan Caculo Cabaca hydropower plant in Angola and a 36.9-billion-yuan project on the Santa Cruz River in Argentina.