New Risk • May 14
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 1.3% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.5x net interest cover). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (3.0% net profit margin). Announcement • Apr 30
Haitian Water Group Co.,Ltd., Annual General Meeting, May 28, 2026 Haitian Water Group Co.,Ltd., Annual General Meeting, May 28, 2026, at 15:00 China Standard Time. Location: The Company's Meeting Room, Chengdu, Sichuan China Announcement • Mar 30
Haitian Water Group Co.,Ltd. to Report Q1, 2026 Results on Apr 30, 2026 Haitian Water Group Co.,Ltd. announced that they will report Q1, 2026 results on Apr 30, 2026 Valuation Update With 7 Day Price Move • Feb 10
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥10.78, the stock trades at a trailing P/E ratio of 18.8x. Average trailing P/E is 27x in the Water Utilities industry in China. Total returns to shareholders of 11% over the past three years. Valuation Update With 7 Day Price Move • Jan 19
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥12.79, the stock trades at a trailing P/E ratio of 22.4x. Average trailing P/E is 30x in the Water Utilities industry in China. Total returns to shareholders of 40% over the past three years. Announcement • Dec 26
Haitian Water Group Co.,Ltd. to Report Fiscal Year 2025 Results on Apr 30, 2026 Haitian Water Group Co.,Ltd. announced that they will report fiscal year 2025 results on Apr 30, 2026 Board Change • Dec 12
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 5 non-independent directors. Independent Director Peng Luo was the last independent director to join the board, commencing their role in 2019. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Nov 14
Investor sentiment deteriorates as stock falls 29% After last week's 29% share price decline to CN¥11.33, the stock trades at a trailing P/E ratio of 19.8x. Average trailing P/E is 27x in the Water Utilities industry in China. Total returns to shareholders of 28% over the past three years. New Risk • Nov 10
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 7.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (currently running at an operating cash loss). Minor Risks Share price has been volatile over the past 3 months (7.5% average weekly change). Profit margins are more than 30% lower than last year (11% net profit margin). New Risk • Oct 31
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 11% Last year net profit margin: 15% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (currently running at an operating cash loss). Minor Risk Profit margins are more than 30% lower than last year (11% net profit margin). Reported Earnings • Oct 31
Third quarter 2025 earnings released: EPS: CN¥0.10 (vs CN¥0.09 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.10 (up from CN¥0.09 in 3Q 2024). Revenue: CN¥1.04b (up 218% from 3Q 2024). Net income: CN¥42.5m (up 3.2% from 3Q 2024). Profit margin: 4.1% (down from 13% in 3Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 9% per year whereas the company’s share price has increased by 6% per year. Valuation Update With 7 Day Price Move • Oct 28
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥10.39, the stock trades at a trailing P/E ratio of 18.3x. Average trailing P/E is 28x in the Water Utilities industry in China. Total returns to shareholders of 21% over the past three years. Announcement • Sep 30
Haitian Water Group Co.,Ltd. to Report Q3, 2025 Results on Oct 31, 2025 Haitian Water Group Co.,Ltd. announced that they will report Q3, 2025 results on Oct 31, 2025 Announcement • Jun 30
Haitian Water Group Co.,Ltd. to Report First Half, 2025 Results on Aug 29, 2025 Haitian Water Group Co.,Ltd. announced that they will report first half, 2025 results on Aug 29, 2025 Announcement • Mar 28
Haitian Water Group Co.,Ltd. to Report Q1, 2025 Results on Apr 30, 2025 Haitian Water Group Co.,Ltd. announced that they will report Q1, 2025 results on Apr 30, 2025 Reported Earnings • Mar 06
Full year 2024 earnings released: EPS: CN¥0.66 (vs CN¥0.52 in FY 2023) Full year 2024 results: EPS: CN¥0.66 (up from CN¥0.52 in FY 2023). Revenue: CN¥1.52b (up 19% from FY 2023). Net income: CN¥304.8m (up 26% from FY 2023). Profit margin: 20% (up from 19% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Announcement • Mar 06
Haitian Water Group Co.,Ltd., Annual General Meeting, Mar 26, 2025 Haitian Water Group Co.,Ltd., Annual General Meeting, Mar 26, 2025, at 15:00 China Standard Time. Location: The Company's Meeting Room, Chengdu, Sichuan China New Risk • Feb 26
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 8.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (15% operating cash flow to total debt). Minor Risks Dividend is not well covered by cash flows (dividend per share is over 18x cash flows per share). Share price has been volatile over the past 3 months (8.2% average weekly change). Valuation Update With 7 Day Price Move • Jan 07
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to CN¥7.22, the stock trades at a trailing P/E ratio of 15.7x. Average trailing P/E is 21x in the Water Utilities industry in China. Total loss to shareholders of 36% over the past three years. Announcement • Dec 27
Haitian Water Group Co.,Ltd. to Report Fiscal Year 2024 Results on Apr 23, 2025 Haitian Water Group Co.,Ltd. announced that they will report fiscal year 2024 results on Apr 23, 2025 Valuation Update With 7 Day Price Move • Dec 24
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥8.88, the stock trades at a trailing P/E ratio of 19.3x. Average trailing P/E is 22x in the Water Utilities industry in China. Total loss to shareholders of 19% over the past three years. Buy Or Sell Opportunity • Dec 18
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 34% to CN¥7.51. The fair value is estimated to be CN¥6.19, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.5% over the last 3 years, while earnings per share has been flat. Buy Or Sell Opportunity • Dec 03
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 32% to CN¥7.43. The fair value is estimated to be CN¥6.19, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.5% over the last 3 years, while earnings per share has been flat. Reported Earnings • Oct 30
Third quarter 2024 earnings released: EPS: CN¥0.09 (vs CN¥0.12 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.09 (down from CN¥0.12 in 3Q 2023). Revenue: CN¥327.5m (up 7.0% from 3Q 2023). Net income: CN¥41.2m (down 22% from 3Q 2023). Profit margin: 13% (down from 17% in 3Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has fallen by 15% per year, which means it is performing significantly worse than earnings. Announcement • Sep 30
Haitian Water Group Co.,Ltd. to Report Q3, 2024 Results on Oct 30, 2024 Haitian Water Group Co.,Ltd. announced that they will report Q3, 2024 results on Oct 30, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥6.49, the stock trades at a trailing P/E ratio of 13.4x. Average trailing P/E is 22x in the Water Utilities industry in China. Total loss to shareholders of 41% over the past three years. Reported Earnings • Aug 20
Second quarter 2024 earnings released: EPS: CN¥0.16 (vs CN¥0.19 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.16 (down from CN¥0.19 in 2Q 2023). Revenue: CN¥433.3m (up 28% from 2Q 2023). Net income: CN¥74.3m (down 16% from 2Q 2023). Profit margin: 17% (down from 26% in 2Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has fallen by 24% per year, which means it is performing significantly worse than earnings. Announcement • Jun 28
Haitian Water Group Co.,Ltd. to Report First Half, 2024 Results on Aug 20, 2024 Haitian Water Group Co.,Ltd. announced that they will report first half, 2024 results on Aug 20, 2024 Reported Earnings • Apr 25
First quarter 2024 earnings released: EPS: CN¥0.06 (vs CN¥0.07 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.06 (down from CN¥0.07 in 1Q 2023). Revenue: CN¥288.1m (up 3.4% from 1Q 2023). Net income: CN¥29.1m (down 10% from 1Q 2023). Profit margin: 10% (down from 12% in 1Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has fallen by 28% per year, which means it is performing significantly worse than earnings. Buy Or Sell Opportunity • Apr 17
Now 22% overvalued Over the last 90 days, the stock has fallen 14% to CN¥6.77. The fair value is estimated to be CN¥5.53, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Earnings per share has declined by 2.7%. Announcement • Mar 29
Haitian Water Group Co.,Ltd. to Report Q1, 2024 Results on Apr 25, 2024 Haitian Water Group Co.,Ltd. announced that they will report Q1, 2024 results on Apr 25, 2024 Announcement • Mar 27
Haitian Water Group Co.,Ltd. (SHSE : 603759) signed a share transfer agreement to acquire Onfar International Limited from Billion City Investments Limited for approximately CNY 270 million. Haitian Water Group Co.,Ltd. (SHSE : 603759) signed a share transfer agreement to acquire Onfar International Limited from Billion City Investments Limited for approximately CNY 270 million on March 25, 2024. The completion of the transaction is subject to the conditions fulfilled; (i) The agreement is duly signed by all parties and becomes effective. (ii) The parties have each completed all internal procedures for approving this acquisition. (iii) The Company has obtained all overseas investment approval procedures for this acquisition. (iv) Billion City Investments Limited has completed the release of the pledge of Onfar International Limited’s 100% stake. (v) The Company completes necessary legal, financial and other due diligence investigations for this acquisition. The Company will pay 20% of the transfer price as a deposit, within 5 days after the official signing of the agreement. Within 10 working days after the conditions are fulfilled, the Company will pay 55% of the transfer price. The conditions are: (1) Billion City Investments Limited completes the transfer procedures for Onfar International Limited’s shares and provides the Company with relevant written certification documents. (2) Billion City Investments Limited and Onfar International Limited submit the Articles of Association of Anfa International, as revised at the request of the Company, to the company registration office where Onfar International Limited is located for registration. (3) Billion City Investments Limited and Onfar International Limited complete the handover of Onfar International Limited, including but not limited to handing over to the Company all documents and information such as certificates, original seals, and financial files of Onfar International Limited. (4) The deposit of CNY 54,000,000 is returned in full and on time as agreed. (5) All prerequisites are still being met or waived. Within 10 working days after the conditions are fulfilled, the Company will pay 15% of the transfer price. The conditions are: (1) All conditions for payment of the second payment are met. 2) Billion City Investments Limited and Onfar International Limited complete the handover of Yichun Water Group Co., Ltd. (3) the Company has completed the transition period audit of Onfar International Limited and Yichun Water Group Co., Ltd., and there are no major differences. The transaction does not need the Shareholders’ approval. Announcement • Mar 26
Haitian Water Group Co.,Ltd. (SHSE:603759) agreed to acquire 51% stake in Yichun Water Industry Company Limited from Billion City Investments Limited. Haitian Water Group Co.,Ltd. (SHSE:603759) agreed to acquire 51% stake in Yichun Water Industry Company Limited from Billion City Investments Limited for CNY 270 million on March 25, 2024. As of September 30, 2023, Yichun Water Industry Company Limited generated total assets of CNY 660 million and net assets of CNY 369.8 million. New Risk • Mar 26
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 3.8% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (14% operating cash flow to total debt). Minor Risk Paying a dividend despite having no free cash flows. Announcement • Mar 20
Haitian Water Group Co.,Ltd., Annual General Meeting, Apr 12, 2024 Haitian Water Group Co.,Ltd., Annual General Meeting, Apr 12, 2024, at 14:00 China Standard Time. Location: The Company's Meeting Room, Chengdu, Sichuan China Reported Earnings • Mar 12
Full year 2023 earnings released: EPS: CN¥0.52 (vs CN¥0.46 in FY 2022) Full year 2023 results: EPS: CN¥0.52 (up from CN¥0.46 in FY 2022). Revenue: CN¥1.28b (up 7.5% from FY 2022). Net income: CN¥242.0m (up 13% from FY 2022). Profit margin: 19% (up from 18% in FY 2022). The increase in margin was driven by higher revenue. Valuation Update With 7 Day Price Move • Feb 02
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥6.59, the stock trades at a trailing P/E ratio of 13.4x. Average trailing P/E is 17x in the Water Utilities industry in China. Total loss to shareholders of 32% over the past year. Announcement • Dec 29
Haitian Water Group Co.,Ltd. to Report Fiscal Year 2023 Results on Mar 20, 2024 Haitian Water Group Co.,Ltd. announced that they will report fiscal year 2023 results on Mar 20, 2024 Reported Earnings • Oct 26
Third quarter 2023 earnings released: EPS: CN¥0.12 (vs CN¥0.13 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.12 (down from CN¥0.13 in 3Q 2022). Revenue: CN¥306.1m (up 8.9% from 3Q 2022). Net income: CN¥53.0m (down 13% from 3Q 2022). Profit margin: 17% (down from 22% in 3Q 2022). The decrease in margin was driven by higher expenses. Reported Earnings • Aug 29
Second quarter 2023 earnings released: EPS: CN¥0.19 (vs CN¥0.13 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.19 (up from CN¥0.13 in 2Q 2022). Revenue: CN¥339.1m (up 13% from 2Q 2022). Net income: CN¥88.6m (up 52% from 2Q 2022). Profit margin: 26% (up from 19% in 2Q 2022). The increase in margin was driven by higher revenue. Announcement • Jun 28
Haitian Water Group Co.,Ltd. to Report First Half, 2023 Results on Aug 29, 2023 Haitian Water Group Co.,Ltd. announced that they will report first half, 2023 results on Aug 29, 2023 Reported Earnings • Apr 26
First quarter 2023 earnings released: EPS: CN¥0.07 (vs CN¥0.088 in 1Q 2022) First quarter 2023 results: EPS: CN¥0.07 (down from CN¥0.088 in 1Q 2022). Revenue: CN¥278.6m (up 9.3% from 1Q 2022). Net income: CN¥32.4m (down 22% from 1Q 2022). Profit margin: 12% (down from 16% in 1Q 2022). The decrease in margin was driven by higher expenses. Reported Earnings • Oct 27
Third quarter 2022 earnings released: EPS: CN¥0.13 (vs CN¥0.11 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.13 (up from CN¥0.11 in 3Q 2021). Revenue: CN¥281.2m (up 4.4% from 3Q 2021). Net income: CN¥61.1m (up 22% from 3Q 2021). Profit margin: 22% (up from 19% in 3Q 2021). Reported Earnings • Aug 18
Second quarter 2022 earnings released: EPS: CN¥0.13 (vs CN¥0.091 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.13 (up from CN¥0.091 in 2Q 2021). Revenue: CN¥299.9m (up 21% from 2Q 2021). Net income: CN¥58.3m (up 37% from 2Q 2021). Profit margin: 19% (up from 17% in 2Q 2021). The increase in margin was driven by higher revenue. Reported Earnings • Apr 27
First quarter 2022 earnings released: EPS: CN¥0.13 (vs CN¥0.15 in 1Q 2021) First quarter 2022 results: EPS: CN¥0.13. Revenue: CN¥254.9m (up 23% from 1Q 2021). Net income: CN¥41.5m (up 21% from 1Q 2021). Profit margin: 16% (in line with 1Q 2021). Reported Earnings • Apr 12
Full year 2021 earnings released: EPS: CN¥0.73 (vs CN¥0.75 in FY 2020) Full year 2021 results: EPS: CN¥0.73. Revenue: CN¥1.08b (up 27% from FY 2020). Net income: CN¥213.8m (up 22% from FY 2020). Profit margin: 20% (in line with FY 2020). Valuation Update With 7 Day Price Move • Feb 10
Investor sentiment improved over the past week After last week's 16% share price gain to CN¥18.18, the stock trades at a trailing P/E ratio of 29.1x. Average trailing P/E is 22x in the Water Utilities industry in China. Reported Earnings • Oct 26
Third quarter 2021 earnings released: EPS CN¥0.16 (vs CN¥0.26 in 3Q 2020) The company reported a soft third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: CN¥269.4m (up 17% from 3Q 2020). Net income: CN¥50.2m (down 17% from 3Q 2020). Profit margin: 19% (down from 26% in 3Q 2020). The decrease in margin was driven by higher expenses. Valuation Update With 7 Day Price Move • Aug 17
Investor sentiment improved over the past week After last week's 20% share price gain to CN¥21.37, the stock trades at a trailing P/E ratio of 24.8x. Average trailing P/E is 17x in the Water Utilities industry in China. Announcement • May 27
Haitian Water Group Co.,Ltd (SHSE:603759) agreed to acquire Four Water Treatment Factories for CNY 200 million. Haitian Water Group Co.,Ltd (SHSE:603759) agreed to acquire Four Water Treatment Factories for CNY 200 million on May 26, 2021. Valuation Update With 7 Day Price Move • Apr 27
Investor sentiment deteriorated over the past week After last week's 16% share price decline to CN¥25.21, the stock trades at a trailing P/E ratio of 33.6x. Average trailing P/E is 19x in the Water Utilities industry in China. Reported Earnings • Apr 20
Full year 2020 earnings released: EPS CN¥0.75 (vs CN¥0.66 in FY 2019) The company reported a solid full year result with improved earnings and revenues, although profit margins were weaker. Full year 2020 results: Revenue: CN¥850.3m (up 25% from FY 2019). Net income: CN¥174.8m (up 13% from FY 2019). Profit margin: 21% (down from 23% in FY 2019). The decrease in margin was driven by higher expenses. 
