China Water

What China Water does

China Water Affairs Group Limited (HKEX: 0855) is a Hong Kong-headquartered, publicly listed integrated water utility — described in its own materials as the only Hong Kong listed company focused on the tap water business — that provides raw water supply, urban tap water supply, sewage treatment, pipeline network construction, and pipeline direct drinking water services across mainland China. The company operates under 25-year franchise agreements granted by municipal governments in tier 3-5 cities, serving more than 30 million people across 100+ cities in 20-24 provinces with total daily water handling capacity above 20 million cubic meters. The business was built around a 'win-win' public-private partnership model in lower-tier Chinese cities where municipal capex requirements and aging infrastructure exceed in-house government capacity. Founder-Chairman Duan Chuan Liang has led the group since 2003; strategic shareholders include ORIX Corporation and Greatwall Life Insurance (≈5.02%).

The company's core technology stack centers on (1) its Pipeline Direct Drinking Water System, a dual-pipe network that separately delivers domestic tap water and treated drinking water from a single treated source, with 2,000+ projects operating across 100+ cities; (2) smart wastewater treatment plant technology, including a 100,000 m³/day flagship plant that supports the Ningxiang City Dongting Lake protection program; and (3) the Fingertip Water Affairs mobile application (指尖水務) for digital bill payment and usage management. Operating footprint includes over 60 cities with designed tap water supply capacity above 8 million tons/day, sewage franchises across Beijing, Tianjin, Shenzhen, Guangdong, Henan, Hebei, Hubei, Jiangxi, and Shaanxi, and an emerging industrial wastewater line anchored by the ExxonMobil Huizhou Daya Bay project.

Revenue is generated across five streams — tap water supply operations, pipeline direct drinking water, sewage treatment/drainage, construction and installation services, and a property/hotel business — under a government-regulated monthly subscription tariff structure administered by the NDRC, with approved tariff adjustments historically constrained by the COVID-era policy environment. Go-to-market is enterprise field sales targeting municipal governments for franchises, plus direct-selling of direct drinking water services to residential communities, schools, hospitals, and industrial parks. Reported top line printed HK$12.95B in FY2021/22 (+25.2% YoY), HK$14.195B in FY2022/23, and HK$12.86B in FY2023/24 (-9.4% YoY, partly on RMB FX and lower construction revenue), with FY2023/24 net profit of HK$2.59B (-16.1% YoY) and net assets of HK$22.569B at September 2024. Recent capital actions include a US$500M-equivalent syndicated facility (Nov 2022), RMB 1B AA-rated blue bonds (Jan 2025), a US$100M ADB loan (Nov 2025), and a US$150M ADB/NDB financing package (Dec 2025).

Name

China Water

Legal name

China Water Affairs Group Limited

Website

https://chinawatergroup.com

Company type

Public

Founded year

2003

Operating status

Operating

Headcount range

5,001–10,000 employees

Short description

China Water Affairs Group Limited (HKEX: 0855) is a Hong Kong-listed integrated water utility that provides tap water supply, pipeline direct drinking water, and sewage treatment under long-term municipal government franchises, serving over 30 million people across 100+ Chinese cities.

Ownership category

akta.pro rank

Product category

Water Utility Services

NAICS

Water Supply and Irrigation Systems (22131), Water, Sewage and Other Systems (2213), Sewage Treatment Facilities (22132), Water and Sewer Line and Related Structures Construction (23711)

SIC

Water Supply (4941), Electric, Gas & Sanitary Services (4900), Water, Sewer, Pipeline, Comm & Power Line Construction (1623), Sanitary Services (4950)

akta.pro primary industry

Raw Water Conveyance & Transmission (Aqueducts, Mains, Pumping Stations) (EUANAAAB)

akta.pro secondary industries

Third-Party Water Retailing & Managed Billing Services (outsourced billing, white-label retail operations) (EUANAIAL), Purple Pipe / Recycled Water Distribution Utilities (Networks, Pressure Zones) (EUANAGAE), Water Treatment Plant Construction (Drinking Water) (IMAFAGAA), Water Resources Administration (Watersheds, Rivers, Groundwater) (BPAIAMAE), Water Resources, WASH & Integrated Water Management (BPADALAH)

Keywords

• Urban water supply
• Pipeline drinking water
• Sewage treatment
• Water infrastructure
• Municipal water services

Headquarters

HQ city

Wan Chai

HQ country

Hong Kong SAR China

HQ region

Asia

Offices3 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Infrastructure, Operations, Personnel, Supply Chain, Technology or R&D, Marketing or Sales

Revenue model

1. Tap Water Supply Operations: Core revenue stream from urban water supply operations including water treatment and distribution. Generates stable recurring revenue with cash income largely immune from economic cycles. Includes water supply operation services and water supply connection income.
2. Pipeline Direct Drinking Water: Growing revenue stream from direct drinking water supply services. Delivered explosive growth with 379.4% YoY increase in FY2021/22 and 72.5% YoY growth in operations revenue in FY2023/24. Operates through separate pipeline systems delivering treated drinking water.
3. Sewage Treatment and Drainage: Environmental protection segment including sewage treatment and water environmental renovation. Operates under 25-year franchise agreements granted by local governments. Revenue includes both operation services and construction services.
4. Construction and Installation Services: Water supply connection income, pipeline network construction, meter installation, and water resources projects. One-time connection fees combined with ongoing service revenue.
5. Property Business: Real estate development operations associated with water infrastructure projects, including hotel operations under the Group.

Pricing tiers

Go-to-market motion2 records

Distribution channels3 records

Marketing channels4 records

Core offering

China Water Affairs Group Limited operates urban water supply infrastructure across China, providing treated tap water to over 60 cities with designed capacity exceeding 8 million tonnes per day, delivering pipeline direct drinking water through dedicated dual-pipe systems to more than 2,000 projects across 100+ cities, and operating sewage treatment facilities under 25-year franchise agreements granted by local governments in provincial cities. The group also offers value-added services including pipeline network construction, meter installation, water resources projects, and the Fingertip Water Affairs mobile application for digital billing and water management.

Product overview

China Water Affairs operates as a full-service integrated water operator offering a comprehensive portfolio of water-related products and services. The core product portfolio consists of: (1) Tap Water Supply - urban water supply operations serving over 60 cities with capacity exceeding 8 million tonnes per day; (2) Pipeline Direct Drinking Water - advanced dual-pipeline system delivering treated drinking water directly to homes, with over 2,000 projects across 100+ cities; (3) Sewage Treatment - wastewater treatment and drainage services operating under 25-year government franchises; and (4) Value-added Services including the Fingertip Water Affairs mobile app for bill payments and water management. The company serves over 30 million people across more than 100 cities in 24 provinces, municipalities and autonomous regions, positioning itself as a market leader in China's water affairs sector with a complete business operation model.

Differentiator

Problem solved

Functional benefit

Brands

• 指尖水務: Mobile application for water fee payment and inquiry services allowing users to pay water bills and query usage

Products and services

• Tap Water Supply Urban water supply operations providing treated tap water to cities across China. The Group operates over 60 city water supply businesses with total designed capacity over 8 million tonnes of tap water per day, generating stable and growing net cash income largely immune from economic cycles.
• Pipeline Direct Drinking Water Advanced water treatment system that takes tap water and other suitable drinking water sources as raw water, treating it through technical means to deliver separate domestic tap water and direct drinking water through dedicated pipelines, achieving water quality improvement and diversion goals. The Group has invested and operated more than 2,000 direct drinking water projects across more than 100 cities.
• Sewage Treatment

Quantifiable outcome

• Pipeline direct drinking water revenue surged 379.4% YoY to HK$693.7 million in FY2021/22
• +4 more outcomes

Named customers3 records

Segments4 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

One partnership is on record.

• Silver Dragon and JV CompanycoreStrategic or Co-development Partner · 9 February 2026China Water Affairs renewed its supply arrangement with a joint venture subsidiary for continued supply of pipeline direct drinking water and water purification products. Silver Dragon and the JV Company signed a new three-year framework agreement effective April 1, 2026, for the supply of pipeline direct drinking and water purification products. The deal qualifies as a continuing connected transaction under Hong Kong listing rules due to ORIX Corporation's substantial shareholding.

Scale indicators12 records

Recent moves6 records

Expansion highlights5 records

Broad incumbents

• American Water Works Company, Inc. American Water Works is the largest US investor-owned water and wastewater utility, operating regulated water supply services to millions of customers. Comparable as a broad incumbent benchmark for regulated water utility economics, capital intensity, and franchise-style operations, though operating in a different regulatory and geographic context.
• Veolia Environnement S.A. Veolia operates water and wastewater services globally and has a significant presence in China through municipal water concessions and industrial water treatment contracts. It is a broad incumbent peer offering overlapping capabilities in water utility operations and PPP projects with Chinese municipalities.
• Suez Environnement (Suez SA): Suez is a global water and waste management operator with Chinese municipal water and wastewater concession activity, including PPP projects with mainland city governments. Comparable as a broad incumbent competing for the same tier 3-5 city franchise opportunities as China Water.

Direct peers

• Kangda International Environmental Company Limited: Kangda International (6136.HK) is a Hong Kong-listed water and environmental services company focused on sewage treatment and water supply in China, and is an associated company of China Water Affairs Group with overlapping director/management. It is a directly comparable peer in sewage treatment franchises and project operations, with strong operational overlap despite the related-party relationship.
• Beijing Enterprises Water Group Limited: Beijing Enterprises Water Group (371.HK) is the largest integrated water operator in China with similar municipal franchise, sewage treatment, and water supply operations across hundreds of cities. Both companies target Chinese municipal water concessions, compete for tier 3-5 city franchises, and are listed on the Hong Kong Stock Exchange, making it the most directly comparable peer.
• Guangdong Investment Limited: Guangdong Investment (270.HK) operates a major water supply business in Guangdong province through its subsidiary, serving tens of millions of residents via long-term concessions. As a Hong Kong-listed utility with a substantial water segment, it is a directly comparable regional peer to China Water in scale and franchise-based revenue model.
• Chongqing Water Group Co., Ltd. Chongqing Water Group (1585.HK) is a Hong Kong-listed municipal water utility operating tap water supply and sewage treatment services in China under long-term franchise arrangements. Directly comparable to China Water in business model, regulatory exposure, and revenue mix, though focused primarily on the Chongqing municipality.

Regional players

• China State Construction International Holdings Limited: China State Construction International (3311.HK) is a Hong Kong-listed construction and infrastructure group with a significant environmental/water infrastructure segment operating in mainland China. While more construction-focused than China Water, it competes for similar municipal water infrastructure project contracts and PPP mandates.
• Soundwill Holdings Limited: Soundwill Holdings (878.HK) is a Hong Kong-based property and water utility operator with water supply operations in mainland China, particularly in Jiangxi and other provinces. Comparable as a smaller HK-listed player operating Chinese municipal water concessions with a similar franchise-based model.
• Ranhill Utilities Berhad: Ranhill Utilities is a Malaysia-based integrated water utility operating water supply and wastewater treatment concessions in Southeast Asia. Comparable as a regional water utility peer operating under regulated municipal franchise contracts, though in a different geography.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks7 records

Key highlights7 records

Customer concentration

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles14 records

Subsidiaries2 records

Funding overview

Funding rounds1 record

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about China Water