Water service industry
Beijing Capital Co., Ltd., owned by the Capital Group, is a significant player in the water service industry. It is a listed company on the Shanghai A share market, and sets the pace for the water service industry. Beijing Capital Co., Ltd. has an internationally advanced technology and management concepts, strong funding and operational ability. It also comprises professionals with both rich working experience and professional knowledge. This company is playing a leading role in the market and enjoys a high brand awareness in the water supply field of the whole country. It is the China's largest water enterprise, and has been regarded as one of the top ten most influential enterprises for water service industries in China for eight consecutive years. In terms of the capacity of water treatment on a daily basis, it is also ranked among the top 10 water enterprises in the world.In recent years, Beijing Capital Co., Ltd. has started a comprehensive cooperation with the Hunan Provincial Government in the field of river control, construction of wastewater treatment facilities, and environmental protection, etc. It has invested in all 103 wastewater treatment projects in the watershed basin of the Xiangjiang River. This represents a new strategic investment model of the company providing potential for accelerating the expansion scale of its water business. At the same time, the company is attempting to realize a transition from a water service investment-oriented company to an operation-oriented company, a transition from a pure water service enterprise to an environmental protection enterprise. The company is accelerating the promotion of market exploration in the field of design, construction, consulting, overall management for water projects and in solid waste treatment. At the present time, the company has established wholly-owned and joint-ventured water plants in 32 cities in the country. The total investment in holding and participating in shares of water projects is more than 10 billion RMB. Currently, the water treatment capacity reaches 12 million tons per day, which serves a population of 20 million.
In 2010, Beijing Capital Co., Ltd. showed a big increase in business indicators with an operating income of 3 billion RMB, a total profit of 0.74 billion RMB, and a net profit of 0.6 billion RMB. In this year, the company signed new contracts for wastewater-treatment projects in Shaoyang (Hunan), the Develop Zone in Zhengzhou (Henan), Luozhuang Region in Linyi (Shandong), Shengxin in Shaoxing (Zhejiang), Enshi (Hubei), and the urban-rural integrated water supply project in Linyi, etc. These projects may increase a total water treatment capacity by over 500,000 tons per day.
Construction and Operation of Transportation
Urban traffic facilities are a major investment and construction area for the Capital Group. The Capital Group has successively made large-scale investments in the Beijing-Shijiazhuang Expressway, the Beijing-Tongzhou Freeway, the Beijing-Tianjin Expressway, and Lines 13, 5 and 4 of the Beijing Subway. The Capital Group has also invested in Beijing Capital Highway Development Co. Ltd. In particular, the Beijing-Tianjin Expressway and Line 4 of the Beijing Subway represent the most significant infrastructure investment for the Capital Group.The Capital Group has a 60% share of Tianjin Beijing-Tianjin Expressway Co., Ltd. which invested and constructed the Tianjin Section of Beijing-Tianjin Expressway. Since the start of the operation of this project, the operational income has increased enormously, thus greatly shortening the length of this period which the highway needs to reach its expected normal level of operational capacity. In 2010, Tianjin Beijing-Tianjin Expressway Co., Ltd. realized the operating income of 520 million RMB, representing an increase 66% over the previous year. The daily average traffic flow is 34,000 vehicles, and the daily average income is 1.4 million RMB.
Line 4 of the Beijing Subway is the first subway project developed and operated by PPP mode in our country that is invested and constructed by the Capital Group with MTR Corporation Limited. The Capital Group and MTR Corporation Limited respectively hold 49% of equity of this project. It is an important innovation in the field of investment and financing of infrastructure in Beijing. It is also the first subway project participated by utilizing foreign capital and introducing a social fund, and the innovation achievement of reform of domestic public utilities. Since the completion of this project, the operation has been safe and smooth, the management level and management efficiency has improved steadily, and the average punctuality rate of trains has been over 99.5%. Through the joint efforts of the parties involved, the Daxing Line, the extension of Line 4 of the Beijing Subway, has formally opened for operation, and the current operation is good.