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Infrastructure industry Achieve win-win cooperation and produce positive outcomes

SCIG has been firmly implementing the development strategy put forward by the CPC Sichuan Provincial Committee and the Sichuan Provincial Government to boost the coordinated development between urban and rural areas. On one hand, it has been constantly expanding its business in water, gas supplying and waste water treatment in cities, countries and districts. On the other hand, it is also expanding public service programs in cooperation with central SOEs and local governments through PPP models so that infrastructure industry can become a stable source of profit during the 13th Five-year Plan period.

SCIG has been working closely with eight counties and districts including Suining, Zigong, Ya’an, Guangyuan, Dazhou, Mianyang and Nanchong to supply gas and water as well as provide waste water treatment service through the operating platform of Chuantou Water Group Corporation, three county-level gas companies and six county-level water resources company. It now boasts 340,000 customers for tap water and 220,000 customers for natural gas. It is also negotiating with Ya’an, Neijiang, Nanchong and Ziyang for new projects. In 2016, Chuantou Water Group Corporation had achieved an income of 460 million yuan, a total profit of 110 million yuan, and total assets worth 940 million yuan. The major economic indicators for Chuantou Water Group Corporation including real return on equity and hedge and appreciation ratio are all above average level compared to other companies in the industry. Chuantou Water Group Corporation is promoting asset securitization and aims to get listed on the “New Three Board” – China’s share transfer system for medium and small sized companies, before its IPO listing on the main board by the end of the 13th Five-year Plan.

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