Nanhai Development (600323), a company which mainly supplies tap water, treats sewage, and generates power from waste, posted a 73.11 percent year-on-year drop in 2011 net profit to 150 million yuan despite a 25.6 percent increase in revenue to 750 million yuan, reports China Securities Journal, citing a company filing.

The company is the largest public utiliies company operating in Foshan, Guangdong province. During the reporting period, Nanhai Development used the proceeds raised from a private placement for several solid waste disposal projects.

The water supply business posted only a 1.95 percent year-on-year increase in sales revenue in 2011, while the revenues recorded by its sewage treatment and solid waste disposal businesses rose 72.05 percent and 310.92 percent, respectively.

The revenue generated by the sewage treatment and solid waste disposal businesses totaled 252 million yuan, raising their revenue contribution from 20.36 percent to 35.56 percent of the total.

Based on total equity of 325 million shares, the company plans to distribute cash dividends of 0.8 yuan (including tax) and convert five shares for every 10 shares held.