Financial Performance - The company reported a profit attributable to shareholders of RMB 496,304,000 for the six months ended June 30, 2023, compared to RMB 443,179,000 for the same period in 2022, representing an increase of 11.99%[2] - Total revenue for the six months ended June 30, 2023, was RMB 1,490,141,000, up 11.31% from RMB 1,339,182,000 in the same period of 2022[3] - Gross profit increased to RMB 905,324,000, reflecting a gross margin of approximately 60.7%, compared to RMB 796,546,000 in the previous year[3] - Basic earnings per share for the period were RMB 5.83, compared to RMB 5.01 for the same period in 2022, marking an increase of 16.3%[4] - The total comprehensive income for the period was RMB 526,657,000, compared to RMB 485,858,000 in the previous year, an increase of 8.4%[5] - The company reported a net profit before tax of RMB 564,395,000, an increase from RMB 513,129,000 in the previous year, reflecting a growth of 9.97%[3] - Other income for the period was RMB 41,359,000, up from RMB 25,981,000 in the same period of 2022, representing a growth of 59.0%[3] Assets and Liabilities - The company’s total assets as of June 30, 2023, amounted to RMB 29,769,288,000, an increase from RMB 27,172,516,000 as of December 31, 2022[6] - Cash and cash equivalents decreased to RMB 2,627,569,000 from RMB 3,471,039,000 at the end of 2022, indicating a reduction of 24.3%[6] - The company’s non-current liabilities increased to RMB 13,468,183,000 from RMB 12,560,663,000, reflecting a rise of 7.2%[6] - As of June 30, 2023, the total liabilities amounted to RMB 21,476,129 thousand, an increase of 12.6% from RMB 19,077,624 thousand as of December 31, 2022[7] - The net asset value increased to RMB 8,293,159 thousand, up from RMB 8,094,892 thousand, reflecting a growth of 2.5%[7] Revenue Breakdown - Revenue from the power generation business reached RMB 1,195,597 thousand, with wind power and solar power contributing RMB 1,011,545 thousand and RMB 184,052 thousand, respectively[11] - The revenue from electricity sales included RMB 995,319,000 from benchmark electricity prices and RMB 182,862,000 from renewable energy subsidies for the six months ended June 30, 2023[13] - The total revenue for the group was RMB 1,490,141 thousand, with inter-segment sales of RMB 597,799 thousand being eliminated[11] Operational Highlights - The operating profit for the group was RMB 830,808 thousand, indicating a strong operational performance[11] - The company reported a net profit of RMB 519,594 thousand for the period[11] - The company plans to continue expanding its renewable energy projects and enhance operational efficiency in the coming periods[10] - The company is focusing on technological advancements in smart operation and maintenance services for wind and solar power plants[10] Shareholder Actions - The company declared a dividend of HKD 0.035 per ordinary share for the year ended December 31, 2022, totaling RMB 278,487,000 for the interim period[20] - The company has repurchased 345,390,000 shares at a cost of RMB 205,585,000, reducing the total issued shares to 8,630,079 thousand as of June 30, 2023[29] - The company repurchased a total of 11,170,000 shares at a total cost of HKD 8,354,900 (approximately RMB 7,333,000) during the six months ended June 30, 2023[58] Market and Industry Trends - The global clean energy investment is projected to rise to USD 1.7 trillion in 2023, with China, the EU, and the US leading the investment scale[30] - The demand for N-type photovoltaic components is increasing, with a rapid decline in prices due to enhanced production capacity and market penetration[32] - The new energy storage market is thriving, with significant cost reductions in battery storage and growing government support for green hydrogen initiatives[33] Environmental and Social Responsibility - The group has achieved significant emissions reductions, including 4,259 thousand tons of CO2 and 1,665 thousand tons of standard coal savings in the first half of 2023[51] - The group is actively involved in various public welfare projects across multiple provinces in China, with donations exceeding RMB 24 million during the reporting period[52] Future Plans and Strategies - The company plans to continue optimizing its development layout and innovating development models to actively expand its renewable energy projects in international markets[56] - The company aims to enhance operational awareness and continuously optimize asset quality, focusing on reducing costs and increasing efficiency throughout the entire lifecycle[57] - The company is committed to the continuous growth of smart operation and maintenance services, integrating advanced digital technologies and AI algorithms to improve service quality[56] - The company will strengthen project construction management to ensure steady growth in installed capacity while controlling costs and maintaining quality standards[56] - The company is actively expanding its financing channels and methods to continuously lower financing costs[57] - The company emphasizes the importance of understanding key national policies and revenue models in its international business layout[56] Compliance and Governance - The company has adopted a standard code for securities trading, confirming compliance by all directors for the six months ended June 30, 2023[61] - The audit committee has reviewed the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2023[62]

Financial Performance - Revenue for the year ended 31 December 2022 was RMB2,679 million, representing a 22.0% increase compared to the previous year[9] - Profit for the year ended 31 December 2022 was RMB872 million, a 10.7% increase compared to the previous year[9] - The Group achieved a total revenue of RMB2,679,368,000 in 2022, representing a year-on-year increase of 22.0%[47] - Profit attributable to equity holders of the Group amounted to RMB871,817,000 in 2022, representing a year-on-year increase of 10.7%[47] - Basic earnings per share was RMB9.90 cents in 2022, compared to RMB9.46 cents in 2021[47] - Revenue for the year reached RMB 2,679.37 million, a 22.0% increase compared to the previous year[49] - Net profit attributable to equity holders was RMB 871.82 million, up 10.7% year-on-year[49] - Subsidiary-owned power plants achieved revenue of RMB 2,114,106,000, a 20.9% year-on-year increase, accounting for 78.9% of total group revenue[81][82] - The Group's subsidiary-owned power plants achieved a total net profit of RMB 817,876,000 from power generation in 2022, representing a 7.0% increase over the previous year[85][86] - Revenue from subsidiary-owned power plants increased by 20.9% to RMB 2,114,106,000 in 2022, with wind power revenue growing by 13.9% to RMB 1,769,309,000 and PV revenue surging by 76.4% to RMB 344,797,000[87] Assets and Liabilities - Net assets as of 31 December 2022 amounted to RMB8,095 million with a liability-to-asset ratio of 70.2%[9] - The Group had net assets of RMB8,094,892,000 as of 31 December 2022, compared to RMB7,562,887,000 in 2021[48] - Net assets increased to RMB8,094,892,000 in 2022 from RMB7,562,887,000 in 2021[116] - Bank and other borrowings rose to RMB13,321,143,000 in 2022 from RMB10,939,507,000 in 2021[116] - Liability-to-asset ratio increased to 70.2% in 2022 from 68.6% in 2021[116] - Pledged assets for borrowings amounted to RMB10,488,820,000 in 2022, up from RMB9,702,631,000 in 2021[116] - Contingent liabilities for joint liability guarantees totaled RMB338,643,000 as of 31 December 2022[116] - Contracted but not yet incurred capital expenditure was RMB2,380,563,000 in 2022, compared to RMB2,068,344,000 in 2021[116] - Equity capital contracted but not yet paid to joint ventures and associates decreased to RMB44,500,000 in 2022 from RMB103,540,000 in 2021[116] - Cash and bank balances as of 31 December 2022 were approximately RMB4,049,279,000, a decrease from RMB4,151,437,000 in 2021[116] Wind and Solar Power Development - The Group obtained new annual wind power development and construction permits of 1,355MW and national approval of 4,000MW[15] - Under-construction capacity reached 1,982MW, and newly added capacity was 1,111MW, both setting historical records for the Group[15] - Attributable installed capacity increased to 3,588MW through the disposal of power plants with green electricity subsidies[15] - China's newly installed capacity of wind power and photovoltaic exceeded 120GW in 2022, reaching a new record high[13] - The Chinese government aims to achieve a total installed capacity of over 1,200GW of wind and solar power by 2030[13] - The Group obtained wind power construction permits of 1,355MW and secured preliminary approved renewable energy projects of 4,000MW in China[52] - Newly approved/registered projects in 2022 included 7 wind power projects and 4 PV power projects, totaling 1,556MW[52] - The Group signed new contracts for 3,505MW of wind power resources, 4,000MW of PV power resources, and 4,020MW/8,040MWh of energy storage pipeline projects[54] - Total capacity of power plants under construction reached 1,982MW, with 10 new power plants commissioned, adding 1,111MW of installed capacity[54] - As of December 31, 2022, the Group's attributable installed capacity for grid-connected wind and solar power plants was 3,588MW, with 81.2% owned by subsidiary power plants[57] - The attributable installed capacity of subsidy-free projects reached 2,161MW, accounting for 60.2% of the total attributable installed capacity[57] - Wind power attributable installed capacity increased by 31.4% to 3,137MW, while PV capacity grew by 18.4% to 451MW[59] - Attributable power generation increased by 27.7% year-on-year in 2022, with subsidiary-owned power plants accounting for 78.5% of the total[66][67] - Wind power generation reached 5,893.7 GWh, a 19.5% increase from 2021, while PV power generation surged 165.2% to 779.3 GWh[68] - Weighted average utilization hours for subsidiary-owned wind power plants reached 2,921 hours, 31.5% higher than China's average[71][73] - Consolidated power curtailment rate decreased by 0.4 percentage points to 2.8% for group-invested power plants, with subsidiary-owned plants at 2.5%[76][77] Green Energy and Environmental Impact - The Group's levelized cost of electricity continued to decline, achieving impressive results in green power trading and green certificate sales[13] - The Group received an A rating from Morgan Stanley's MSCI ESG Rating for its environmental protection, compliance, and social responsibility in 2022[16] - The Group's wind and PV power plants reduced CO2, SO2, and NOx emissions, saving standard coal and water compared to conventional thermal power plants[110] - Emissions reduction in 2022: CO2 reduction of 7,092 kilotons (accumulated 47,543 kilotons), SO2 reduction of 1,679 tons (accumulated 27,757 tons), NOX reduction of 1,751 tons (accumulated 25,509 tons), standard coal saving of 2,751 kilotons (accumulated 17,673 kilotons), and water saving of 10,864 kilotons (accumulated 100,374 kilotons)[111] - The Group issued 1.519 million green certificates for grid-parity projects in 2022, a 64% year-on-year increase, and generated RMB 25,494,000 in revenue from green certificate sales[94][95] - The Group transacted approximately 295 GWh of green electricity in 2022, achieving an average price increase of RMB 0.05/kWh compared to the reference thermal power tariff[94][95] Strategic Development and Innovation - The Group formulated a new five-year development strategy (2023-2027) focusing on proactive business growth, differentiated competitive strategy, and global market expansion[17] - The Group plans to increase investment in technological innovation and promote the application of new technologies to create more value[17] - The development of large-sized wind turbines accelerated, with models upgraded from 5.X to 6.X, and 7.X models being deployed[31] - N-type cell technology, including TOPCon, HJT, HBC, and perovskite, is replacing P-type as the next-generation technology in the PV industry[31] - The Group's consolidated levelized cost of electricity (LCOE) decreased by 10.4% in 2022 compared to the previous year, driven by technology innovation and the operation of grid parity projects[89][91] - The Group plans to focus on power generation, leverage professional advantages, and collaborate with the service business sector for multi-wing development[119][121] - Accelerate project development and construction to achieve rapid growth in installed capacity, focusing on wind and solar power to align with national policy and available resources[123] - Continuously reduce LCOE (Levelized Cost of Energy) to enhance operational excellence and explore scientific trading strategies to ensure steady profit growth from power generation[123] - Vigorously develop the service business of renewable energy, focusing on intelligent O&M and optimizing energy management products to strengthen competitiveness[124] - Establish an international investment platform to create a global market presence, leveraging experience in renewable power plant development and exploring overseas low-carbon and high-tech sectors[125] - Continuously optimize asset quality through dynamic analysis of power plants and adjustment of asset structure to improve cash flow and maintain a reasonable liability-to-asset ratio[128] - Strengthen safety management efforts by implementing a closed-loop management mechanism and focusing on risk management to ensure safety in generation and construction[128] - Enhance management and foster corporate culture by optimizing organizational structure, performance management, and incentive mechanisms to support rapid business expansion[131] Market and Policy Environment - China's newly installed capacity of wind power was 37,630MW, and PV was 87,410MW in 2022[29] - China's total electricity consumption in 2022 was 8.6 trillion kWh, with renewable energy generation reaching 2.7 trillion kWh, accounting for 31.6% of total consumption[29] - Wind and PV generation in China reached about 1.2 trillion kWh, accounting for 13.8% of total electricity consumption, a 2 percentage point increase year-on-year[29] - The proportion of transacted electricity volume in China reached approximately 60.8% of total electricity consumption in 2022, an increase of 15.4 percentage points compared to the previous year[40] - The price of wind turbines dropped to RMB2,000/kW in early 2022 and continued to decline, with bid prices as low as RMB1,500/kW reported in the industry[36] - More than 90% of regions in China have released mandatory energy storage requirements for wind and solar power plants[33] - The EU will levy additional duties on steel, aluminum, cement, fertilizer, electricity, and hydrogen energy importers from 2026 onwards as part of the Carbon Border Adjustment Mechanism[43] - The domestic lending rate (LPR) in China is currently at a low level in the past three years, supporting the financing environment for renewable energy power plants[44] - The issuance of Green Certificates will cover all renewable energy power projects, establishing a nationwide unified green certificate system[41] Corporate Governance and Leadership - Mr. Liu Shunxing, aged 61, has been the Chairman of the Company since June 2009 and holds a Bachelor's degree in Electricity Generation from Tianjin University and a Master's degree in Energy Source Economy Management from Harbin Institute of Technology[133] - Ms. Liu Jianhong, aged 54, has been the Vice Chairperson of the Company since January 2016 and holds a Bachelor's degree and a Master's degree from the Law School of Renmin University of China and an EMBA degree from China Europe International Business School[134] - Mr. Gui Kai, aged 64, has been the Chief Executive Officer of the Company since August 2020 and holds a Bachelor's degree from Anhui University of Science & Technology and a Master's degree from China University of Mining and Technology[135] - Mr. Niu Wenhui, aged 52, has been the Chief Financial Officer of the Company since January 2017 and holds a Bachelor's degree in Financial Accounting from Hangzhou Institute of Electronics Technology and a Master's degree in Business Administration from Beihang University[137] - Mr. Zhai Feng, aged 56, has been an Executive Director of the Company since January 2020 and holds a Bachelor's degree in law from Fudan University and a Master's degree in Business Administration from Peking University[138] - Ms. Shang Jia, aged 59, has been an Executive Director of the Company since April 2021 and holds a Bachelor's degree in Industrial Economic & Management from Zhongnan University of Economics and Law[139] - Mr. Wang Feng, aged 53, has been a non-executive director of the Company since February 2019 and holds a Bachelor's degree from Hohai University and a Master's degree from North China Electric Power University[141] - Mr. Yap Fat Suan, Henry, aged 77, has been an independent non-executive director of the Company since 2006 and holds a Master's degree in Business Administration from the University of Strathclyde, Glasgow[142] - Dr. Jesse Zhixi Fang, aged 76, has been an independent non-executive director of the Company since January 2018 and holds a Bachelor's degree from Fudan University, a doctorate degree from the University of Nebraska-Lincoln, and a Postdoctoral Degree from the University of Illinois[143] - Ms. Huang Jian, aged 54, has been an independent non-executive director of the Company since December 2012 and holds a Bachelor's degree and a Master's degree from the Central University of Finance and Economics of the PRC[145] - The company repurchased a total of 384,130,000 ordinary shares for an aggregate consideration of HK$250,947,000 during the year ended 31 December 2022[164] - The highest purchase price per share was HK$0.70, and the lowest was HK$0.60 during the share repurchases in 2022[165] - The company purchased 21,750,000 ordinary shares through Tricor Trust (Hong Kong) Limited to satisfy share awards under the Share Award Scheme[165][166] - The company's principal activity is investment holding, with further details of subsidiary activities provided in Note 52 to the consolidated financial statements[157] - The group's income and contribution to operating profit for the year are analyzed in Notes 5 and 6 to the consolidated financial statements[157] - Details of the company's distributable reserves as of 31 December 2022 are provided in Note 51 to the consolidated financial statements[167] - The company's property, plant, and equipment movements are detailed in Note 17 to the consolidated financial statements[161] - Share capital movements are outlined in Note 40 to the consolidated financial statements[162] - A summary of the group's results, assets, liabilities, and equities for the last five financial years is provided on page 292[170] - The board recommends a final dividend of HK$0.035 per ordinary share for the year ended 31 December 2022, amounting to HK$302,053,000 based on issued shares as of the approval date[171][174] - The proposed final dividend represents an increase from HK$0.03 per share in 2021[171][174] - The final dividend is expected to be paid around the end of June 2023, subject to shareholder approval at the annual general meeting[171][174] - The total number of shares available for issue under the Share Award Scheme is 155,011,748, with 62,250,000 shares held by the Trustee, representing approximately 3.538% of issued shares[182] - As of 31 December 2022, the Trustee held 85,100,000 unvested shares under the Share Award Scheme[183] - The Share Award Scheme has a limit of 5% of the issued share capital as of the Adoption Date for total awards and 1% for individual awards[182] - The Share Award Scheme will expire on 15 June 2025 unless terminated earlier by the Board[177][180] - The Share Award Scheme aims to recognize employee contributions, provide incentives for retention, and attract suitable personnel for the Group's development[176][179] - The Board may impose vesting conditions on awarded shares and must obtain approval from independent non-executive directors for awards to connected persons[178][185] - Awarded shares and related income will vest on the vesting date if all conditions are met, otherwise they will lapse unless the Board determines otherwise[186] - The total number of Awarded Shares unvested as of 1 January 2022 was 135,900,000, with 3,000,000 granted during the year and 52,300,000 vested during the year[194] - As of 31 December 2022, the total number of unvested Awarded Shares was 85,100,000[194] - Executive Directors received a total of 23,550,000 vested Awarded Shares during the year, with Liu Shunxing (Chairman) receiving 4,500,000 and Liu Jianhong (Vice Chairperson) receiving 3,750,000[192] - Non-executive Directors and Independent Non-executive Directors received a total of 1,500,000 vested Awarded Shares during the year[194] - Other employees received a total of 28,200,000 vested Awarded Shares during the year[194] - The Share Award Scheme will terminate on the earlier of the 10th anniversary of the Adoption Date or the date of early termination determined by the Board[190] - In the event of a change of control of the Company, all unvested Awarded Shares will immediately vest on the date the change of control becomes unconditional[188] - Selected Employees do not have any interest or rights in Awarded Shares or Related Income until the Trustee vests the ownership of such shares in them[189] - The Trustee is not allowed to exercise voting rights in respect of any Shares held under the Trust[189] - Any Awarded Shares that do not vest and become Returned Shares may be granted to other Selected Employees under conditions determined by the Board[187] - The fair value of the Awarded Shares at the date of grant was HK$0.71 per Share and vested on 10 May 2022[195] - The closing price immediately before the date on which the Awarded Shares were granted on 21 April 2022 was HK$0.74 per Share[195] - The weighted average closing price of the Shares immediately before the dates on which the awards were vested in 2022 was approximately HK$0.65 per Share[195] - The Awarded Shares granted during the year ended 31 December 2022 were made without any performance targets[195] - The grant price for the Awarded Shares was nil[195] - The vesting periods for the Awarded Shares are spread over multiple years with 25% vesting each year from 2020 to 2025[195] - The fair value of the Awarded

[Corporate Information](index=2&type=section&id=Corporate%20Information) This section provides fundamental details about the company [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the company's performance and financial condition, along with future outlook [Operating Environment](index=6&type=section&id=I.%20Operating%20Environment) In H1 2022, the complex global environment accelerated energy transition, with China's renewable plan targeting doubled wind and solar power, supported by low equipment prices, rapid energy storage, and loose credit - China's "14th Five-Year Plan" for Renewable Energy Development targets annual renewable energy generation of approximately **3.3 trillion kWh by 2025**, with wind and solar power generation doubling[13](index=13&type=chunk)[15](index=15&type=chunk) - As of June 2022, China's wind power installed capacity was approximately **340 GW**, a **17.2% year-on-year increase**, and solar power installed capacity was approximately **340 GW**, a **25.8% year-on-year increase**[14](index=14&type=chunk)[15](index=15&type=chunk) - Industry trends show wind turbine prices remaining at historical lows (below **RMB 2,000/kW**), new energy storage policies promoting large-scale development, and loose credit conditions reducing financing costs[18](index=18&type=chunk)[19](index=19&type=chunk)[23](index=23&type=chunk) [Business Review](index=9&type=section&id=II.%20Business%20Review) In H1 2022, the Group achieved **37.63%** revenue growth and **9.6%** profit growth, making significant strides in project development, construction, operation, financing, and asset optimization, marked by record construction scale and improved asset quality [Project Development and Power Plant Construction](index=10&type=section&id=II.1%20Project%20Development%20and%20Power%20Plant%20Construction) In H1, the Group achieved significant project development, securing **800 MW** wind quotas and **1,101 MW** new projects, expanding resource reserves to **30.84 GW**, and increasing attributable installed capacity by **19.5%** to **2,875.4 MW**, with solar PV growing **137.4%** - In the first half, **800 MW** of wind power quotas were obtained, with **4 new wind power projects** and **2 new solar PV projects** approved/filed, totaling **1,101 MW**[30](index=30&type=chunk)[31](index=31&type=chunk) - As of June end, the Group's signed and pending effective wind and solar resource reserves totaled **30.84 GW**, comprising approximately **15.65 GW** of wind power and **15.20 GW** of solar PV[31](index=31&type=chunk) Power Plant Attributable Capacity Changes (MW) | Business Segment | H1 2022 | H1 2021 | Change Rate | | :--- | :--- | :--- | :--- | | Wind Power | 2,424.7 | 2,216.0 | 9.4% | | Solar PV | 450.7 | 189.7 | 137.4% | | **Total** | **2,875.4** | **2,405.7** | **19.5%** | [Power Plant Production and Operation](index=12&type=section&id=II.2%20Power%20Plant%20Production%20and%20Operation) Power plant production was safe and efficient, with attributable generation up **24.5%** (solar PV up **202.0%**), utilization hours exceeding national averages, and curtailment rates down, leading to steady revenue and net profit growth despite lower average on-grid tariffs Attributable Power Generation (GWh) | Business Segment | H1 2022 | H1 2021 | Change Rate | | :--- | :--- | :--- | :--- | | Wind Power | 2,958.8 | 2,543.8 | 16.3% | | Solar PV | 356.3 | 118.0 | 202.0% | | **Total** | **3,315.1** | **2,661.8** | **24.5%** | - The Group's invested wind power plants had a weighted average utilization of **1,321 hours**, **167 hours higher** than China's average; solar PV power plants had **791 hours**, **101 hours higher** than China's average[44](index=44&type=chunk)[45](index=45&type=chunk) Revenue and Net Profit of Controlled Subsidiary Power Plants (RMB) | Metric | H1 2022 | H1 2021 | Change Rate | | :--- | :--- | :--- | :--- | | Revenue | 1,044,201,000 | 868,095,000 | 20.3% | | Net Profit | 437,502,000 | 410,528,000 | 6.6% | - Due to the commissioning of parity projects, the weighted average on-grid tariff for wind power decreased from **RMB 0.5118/kWh** to **RMB 0.4649/kWh**, and for solar PV from **RMB 0.9398/kWh** to **RMB 0.5338/kWh**[58](index=58&type=chunk)[60](index=60&type=chunk) [Financing Channels and Cost](index=19&type=section&id=II.3%20Financing%20Channels%20and%20Cost) Benefiting from loose credit, the Group achieved record new project financing at historical low rates, with **RMB 2.45 billion** in drawdowns, and period-end capital expenditure commitments significantly increased to **RMB 4.36 billion** - In the first half, new project drawdowns reached **RMB 2.45 billion**, with a significant decrease in new project financing costs[61](index=61&type=chunk) - As of June 30, 2022, contracted but unexpended capital commitments amounted to **RMB 4,364,494,000**, a substantial increase from the end of 2021[61](index=61&type=chunk) [Asset Optimization](index=20&type=section&id=II.4%20Asset%20Optimization) The Group continuously optimizes assets through dynamic analysis and rolling replacement of existing power plants to reduce reliance on green electricity subsidies and improve cash flow, having signed agreements to transfer **144 MW** of projects in the first half, effectively improving asset structure and quality - In the first half, the Group signed agreements to transfer **144 MW** of projects, aiming to improve cash flow and reduce reliance on subsidies through asset replacement[63](index=63&type=chunk)[65](index=65&type=chunk) [Intelligent O&M](index=20&type=section&id=II.5%20Intelligent%20O%26M) The intelligent O&M segment achieved revenue of **RMB 116 million**, a **25.7%** year-on-year increase, serving various types of clean energy assets and actively integrating new technologies, with over **12 GW** of service capacity under management - The intelligent O&M segment achieved revenue of **RMB 115,718,000**, a **25.7%** year-on-year increase[64](index=64&type=chunk)[66](index=66&type=chunk) - Service capacity under management exceeds **12 GW**, with continuous deep integration of digital systems and service scenarios[68](index=68&type=chunk)[69](index=69&type=chunk) [Power Design, Leasing and Other Service Businesses](index=21&type=section&id=II.6%20Power%20Design,%20Leasing%20and%20Other%20Service%20Businesses) The design company actively expanded external markets and EPC business, while the leasing company saw new external business contract value increase by **190%** year-on-year, and the Group strengthened green certificate management, with issuances for parity projects increasing by **29.7%** - Tianjin Guoyin Xinyuan Leasing Co., Ltd.'s new external business contract value increased by **190%** year-on-year[72](index=72&type=chunk)[73](index=73&type=chunk) - The number of green certificates issued for parity projects increased by **29.7%** year-on-year, with bulk sales contracts already initiated[77](index=77&type=chunk) Key Financial Indicators for H1 2022 | Metric | H1 2022 | H1 2021 | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Total Revenue | RMB 1,339,182,000 | RMB 973,014,000 | 37.63% | | Profit Attributable to Equity Holders | RMB 443,179,000 | RMB 404,344,000 | 9.6% | | Basic Earnings Per Share | 5.01 cents | 4.91 cents | - | | Gearing Ratio | 70.79% | - | (Increased from 68.55% at end of 2021) | [Outlook](index=23&type=section&id=III.%20Outlook) In H2, the Group will focus on power generation and synergistic services, accelerating project construction for capacity growth, developing new energy and storage, expanding service businesses, ensuring safe production, and optimizing assets for enhanced efficiency - Accelerate the construction of new and ongoing projects to ensure timely commissioning, achieving rapid growth in attributable installed capacity and power plant earnings[83](index=83&type=chunk)[85](index=85&type=chunk) - Innovate development models, increase energy storage project reserves, and formulate appropriate development strategies based on dynamic assessment of project investment returns relative to equipment prices[88](index=88&type=chunk) - Vigorously develop service businesses, strengthen external business expansion, and promote the synergistic development of design, financial leasing, and intelligent O&M services[89](index=89&type=chunk)[91](index=91&type=chunk) - Persistently conduct dynamic inventory analysis of existing assets, continuously enhancing asset returns and efficiency through various means such as asset replacement, technological upgrades, and intelligent operations[94](index=94&type=chunk) [Report of the Directors](index=28&type=section&id=Report%20of%20the%20Directors) This section details the company's governance, including director interests, share award schemes, and major shareholders [DIRECTORS' AND CHIEF EXECUTIVES' INTERESTS](index=28&type=section&id=DIRECTORS%27%20AND%20CHIEF%20EXECUTIVES%27%20INTERESTS) The report discloses the interests of the company's directors and chief executives in the company's shares as of June 30, 2022, with Chairman Mr. Liu Shunxing holding approximately **20.34%** of shares and Vice Chairman Ms. Liu Jianhong holding approximately **2.10%** Directors' Long Positions in the Company's Shares (Partial) | Director Name | Nature of Interest | Number of Shares Held | Approximate Percentage of Total Issued Share Capital | | :--- | :--- | :--- | :--- | | Liu Shunxing (Chairman) | Personal and Corporate | 1,739,494,242 | 20.34% | | Liu Jianhong (Vice Chairman) | Personal and Corporate | 179,710,000 | 2.10% | [SHARE AWARD SCHEME](index=30&type=section&id=SHARE%20AWARD%20SCHEME) The company has a share award scheme to recognize and retain employees, with **448,773,457** award shares (5% of issued capital) available for grant, and during the period, **3,000,000** new shares were granted and **52,300,000** shares vested - As of the reporting date, the total number of shares available for grant under the share award scheme is **448,773,457**, representing **5%** of the issued share capital, with a remaining term of **3 years**[110](index=110&type=chunk)[113](index=113&type=chunk) - During the reporting period, a total of **52,300,000** award shares vested, and **3,000,000** new shares were granted to other employees[123](index=123&type=chunk) [SUBSTANTIAL SHAREHOLDERS](index=37&type=section&id=SUBSTANTIAL%20SHAREHOLDERS) As of June 30, 2022, major shareholders holding over **5%** included CWPI (**11.20%**), Huadian Fuxin (**9.80%**), and Splendor Power Limited (**7.82%**), with the latter two related to the Chairman Substantial Shareholders' Shareholdings | Shareholder Name | Number of Shares Held | Approximate Percentage of Total Issued Share Capital | | :--- | :--- | :--- | | CWPI | 1,002,877,155 | 11.20% | | Huadian Fuxin | 880,000,000 | 9.80% | | Splendor Power Limited | 701,617,087 | 7.82% | [PURCHASE, SALE OR REDEMPTION OF THE LISTED SECURITIES](index=38&type=section&id=PURCHASE,%20SALE%20OR%20REDEMPTION%20OF%20THE%20LISTED%20SECURITIES) During H1 2022, the company repurchased **38,740,000** ordinary shares on the Hong Kong Stock Exchange for approximately **HKD 25.98 million**, and all repurchased shares have been cancelled Share Repurchase Details | Month | Number of Shares Repurchased | Highest Price Per Share (HKD) | Lowest Price Per Share (HKD) | Total Amount (HKD) | | :--- | :--- | :--- | :--- | :--- | | March 2022 | 38,740,000 | 0.69 | 0.62 | 25,976,200 | [Corporate Governance Report](index=39&type=section&id=Corporate%20Governance%20Report) This section outlines the company's adherence to corporate governance principles and practices [Corporate Governance Report Summary](index=39&type=section&id=Corporate%20Governance%20Report%20Summary) The company consistently complied with the Corporate Governance Code in H1 2022, adopting a standard code for directors' securities transactions, with all directors confirming compliance, and the Audit Committee reviewing the interim financial statements - The company confirms compliance with all code provisions of the Corporate Governance Code during the reporting period[140](index=140&type=chunk) - The Audit Committee, comprising three independent non-executive directors, has reviewed these interim financial statements[141](index=141&type=chunk) [Consolidated Interim Financial Statements](index=40&type=section&id=Consolidated%20Interim%20Financial%20Statements) This section presents the company's financial performance and position for the interim period [Consolidated Statement of Profit or Loss](index=40&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) For H1 2022, the company achieved revenue of **RMB 1.339 billion** (up **37.6%**), gross profit of **RMB 797 million** (up **24.7%**), and profit attributable to shareholders of **RMB 443 million** (up **9.6%**), with basic earnings per share of **RMB 5.01 cents** Consolidated Statement of Profit or Loss Summary (RMB Thousand Yuan) | Item | H1 2022 | H1 2021 (Restated) | | :--- | :--- | :--- | | Revenue | 1,339,182 | 973,014 | | Gross Profit | 796,546 | 638,651 | | Profit Before Income Tax | 513,129 | 444,830 | | Profit for the Period | 470,197 | 417,802 | | Profit Attributable to Company Shareholders | 443,179 | 404,344 | [Consolidated Statement of Financial Position](index=42&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2022, total assets were **RMB 26.82 billion** (up **11.5%**), total liabilities were **RMB 18.99 billion** (gearing ratio **70.8%**), and net assets were **RMB 7.83 billion** (up **3.6%**), with property, plant and equipment being the main component at **RMB 12.62 billion** Consolidated Statement of Financial Position Summary (RMB Thousand Yuan) | Item | June 30, 2022 | December 31, 2021 (Restated) | | :--- | :--- | :--- | | Non-current Assets | 18,000,202 | 16,591,301 | | Current Assets | 8,819,795 | 7,453,517 | | **Total Assets** | **26,819,997** | **24,044,818** | | Non-current Liabilities | 11,526,630 | 10,774,594 | | Current Liabilities | 7,460,493 | 5,707,337 | | **Total Liabilities** | **18,987,123** | **16,481,931** | | **Net Assets** | **7,832,874** | **7,562,887** | [Condensed Consolidated Cash Flow Statement](index=47&type=section&id=Condensed%20Consolidated%20Cash%20Flow%20Statement) In H1 2022, net cash from operating activities was **RMB 831 million**, net cash outflow from investing activities was **RMB 1.982 billion**, and net cash from financing activities was **RMB 915 million**, resulting in a net decrease in cash and cash equivalents of **RMB 236 million** to **RMB 3.283 billion** Consolidated Cash Flow Statement Summary (RMB Thousand Yuan) | Item | H1 2022 | H1 2021 | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 831,222 | 376,531 | | Net Cash Used in Investing Activities | (1,982,483) | (509,591) | | Net Cash Generated from Financing Activities | 914,831 | (796,274) | | Net Decrease in Cash and Cash Equivalents | (236,430) | (929,334) | | Cash and Cash Equivalents at End of Period | 3,283,280 | 1,350,018 | [Notes to the Consolidated Interim Financial Statements](index=49&type=section&id=Notes%20to%20the%20Consolidated%20Interim%20Financial%20Statements) This section provides detailed explanations and breakdowns of the figures presented in the financial statements [3. Segment information](index=51&type=section&id=3.%20Segment%20information) The Group's operations are divided into power generation, intelligent O&M, and other businesses, with power generation being the primary source of revenue and profit in H1 2022, contributing **RMB 1.044 billion** in revenue and **RMB 704 million** in segment results H1 2022 Segment Revenue and Results (RMB Thousand Yuan) | Segment | Revenue from External Customers | Segment Results | | :--- | :--- | :--- | | Power Generation Business | 1,044,201 | 704,016 | | Intelligent O&M | 115,718 | 16,254 | | Other | 179,263 | 4,100 | | **Total** | **1,339,182** | **724,370** | [4. Revenue](index=55&type=section&id=4.%20Revenue) Total revenue for H1 2022 was **RMB 1.339 billion**, primarily from electricity sales at **RMB 1.044 billion** (including **RMB 823 million** from benchmark tariffs and **RMB 221 million** from subsidies), with EPC revenue significantly increasing to **RMB 169 million** Revenue Composition (RMB Thousand Yuan) | Item | H1 2022 | H1 2021 (Restated) | | :--- | :--- | :--- | | Electricity Sales Revenue | 1,044,201 | 868,095 | | Design, Procurement and Construction Revenue | 169,439 | 10,847 | | Power Plant Operation and Maintenance Revenue | 102,647 | 80,892 | | Finance Lease Income | 11,691 | 5,181 | | Other | 11,204 | 8,007 | | **Total** | **1,339,182** | **973,014** | [18. Assets/liabilities classified as held for sale](index=67&type=section&id=18.%20Assets%2Fliabilities%20classified%20as%20held%20for%20sale) During the reporting period, the Group decided to dispose of certain wind power plant subsidiaries, reclassifying **RMB 1.170 billion** in assets and **RMB 926 million** in liabilities as held for sale as of June 30, 2022 - As of June 30, 2022, total assets classified as held for sale amounted to **RMB 1,170,377,000**, with related liabilities totaling **RMB 925,683,000**[228](index=228&type=chunk)[229](index=229&type=chunk) [27. Commitment](index=73&type=section&id=27.%20Commitment) As of June 30, 2022, the Group's contracted but unprovided capital expenditure commitments for property, plant and equipment acquisitions significantly increased to **RMB 4.364 billion** from **RMB 2.068 billion** at the end of 2021, indicating accelerated future investment - Contracted but unexpended capital commitments amounted to **RMB 4,364,494,000**, significantly higher than **RMB 2,068,344,000** at the end of 2021[254](index=254&type=chunk)[257](index=257&type=chunk) [30. Events after the end of the reporting period](index=78&type=section&id=30.%20Events%20after%20the%20end%20of%20the%20reporting%20period) On June 21, 2022, the company announced a potential off-market share repurchase of up to **449 million** ordinary shares held by Huadian Fuxin, pending shareholder approval - The company announced a potential off-market share repurchase of up to **449,000,000** ordinary shares held by Huadian, pending approval at a general meeting of shareholders[279](index=279&type=chunk)

Financial Performance - For the year ended December 31, 2021, the Group generated revenue of RMB 2,183 million, an increase of 9.11% year-on-year, and achieved a profit of RMB 778 million, representing a 15.60% increase compared to the previous year[8]. - The Group achieved a total revenue of RMB2,183,048,000 in 2021, representing a 9.1% increase compared to RMB2,000,754,000 in 2020[49]. - Profit attributable to equity shareholders increased by 15.6% to RMB778,476,000 in 2021, up from RMB673,405,000 in 2020[49]. - Basic earnings per share rose to RMB9.35 cents in 2021, compared to RMB8.18 cents in 2020[49]. - The Group's cash and bank balances were approximately RMB4,151.44 million as of December 31, 2021, up from RMB2,608.07 million in 2020[154]. - The net assets of the Group were RMB7,553.48 million as of December 31, 2021, compared to RMB6,494.50 million in 2020[154]. - The liability-to-asset ratio increased to 68.6% as of December 31, 2021, from 66.7% in 2020[154]. - The Group's bank and other borrowings amounted to RMB10,939.51 million as of December 31, 2021, compared to RMB7,754.50 million in 2020[154]. Operational Achievements - The Group's attributable power generation reached 4.93 billion kilowatt hours, a 10% increase year-on-year, with subsidiary-owned wind farms generating 20.5% more power compared to the previous year[12]. - The total installed capacity of the Group's projects under construction reached 1,833.5 MW, with 13 new power plants commissioned during the reporting period, totaling 873.5 MW[11]. - The Group commenced construction and operation of a total of 586 MW projects in 2021, including individual wind power projects reaching 200 MW[52]. - The total constructed capacity of the Group's projects hit a record of 1,833.5 MW in 2021, compared to 1,050 MW in 2020[55]. - The Group's subsidiary-owned power plants had a total installed capacity of 2,137 MW as of December 31, 2021, with 29 wind power plants (1,763 MW) and 15 PV power plants (374 MW)[59]. - The Group's installed capacity for PV power plants increased significantly by 154.0% to 381 MW in 2021 compared to 150 MW in 2020[61]. Market and Industry Trends - The competitive landscape in the renewable energy sector has intensified with more companies entering the market[9]. - In 2021, the installed capacity of wind power in China reached 47.57 GW, while PV installations hit a record high of 54.88 GW, marking significant growth despite pandemic challenges[28]. - The price of wind turbine equipment dropped from approximately RMB 3,000/kW in early 2021 to under RMB 2,000/kW by the end of 2021, indicating a significant reduction in costs[29]. - The National Development and Reform Commission of China aims to complete a national unified electricity market system by 2025, enhancing market-based transactions for new energy[14]. - The carbon emissions trading market in China was officially launched, becoming the world's largest, which is expected to increase the value of carbon assets significantly in the future[41]. Strategic Initiatives - The Group plans to increase project construction efforts to achieve greater growth in installed capacity, focusing on optimizing procurement strategies and cost control[20]. - The Group aims to expand its business types and explore new growth points, particularly in energy storage and integrated energy services[24]. - The Group will continue to adjust and optimize asset quality, reducing reliance on green electricity subsidies and improving operational efficiency[22]. - The Group's efforts in asset optimization aimed to reduce reliance on renewable energy subsidies and improve cash flow[69]. - The Group will actively explore new energy-related business types, including energy storage, carbon assets, and integrated energy services, to cultivate new growth points[182]. Environmental and Social Responsibility - The Group's renewable energy projects achieved a reduction of 5,717 kilotons of CO2 emissions, 1,378 tons of SO2, and 1,437 tons of NOX in 2021[130]. - The Group saved 2,258 kilotons of standard coal and 8,918 kilotons of water through its renewable energy generation compared to conventional power plants[130]. - The Group emphasizes strict compliance with environmental protection laws and continuously improves its management and sustainable development capabilities[132]. - The Group's focus on ecological and environmental protection includes investments in biodiversity and water conservation[125]. - The Group actively engages in community welfare and social responsibility initiatives while focusing on clean energy development[141]. Employee and Community Engagement - The Group maintains a strong commitment to employee health and safety, ensuring no COVID-19 infections among domestic employees during the year[140]. - As of December 31, 2021, the Group had 1,907 full-time employees, an increase from 1,619 employees in 2020[152]. - Over 80% of employees have received two or more vaccine injections, with an investment of RMB0.39 million in epidemic prevention and control[151]. - The Group has donated approximately RMB3.65 million to support 1,441 outstanding students and reward 79 excellent teachers[142]. - Over 160 training sessions were organized in 2021 to enhance employee skills and improve the in-house trainer system[148]. Future Outlook and Challenges - The Group will closely follow policy changes affecting wind and PV power generation to minimize risks associated with revenue fluctuations[156]. - The ongoing COVID-19 pandemic has introduced significant uncertainties, potentially leading to fluctuations in power demand and supply chain management challenges[161]. - The main climate risk involves fluctuations in power generation due to inter-annual variations in wind and solar resources, which could adversely affect revenue and profits[163]. - The Group will focus on ensuring safety first, improving its safety management system, and implementing production safety responsibilities[173]. - The Group will continue to explore new areas of development while maintaining sustainable growth in its core business[171].

Economic Growth and Energy Demand - In the first half of 2021, China's GDP grew by 12.7% year-on-year, with overall electricity consumption increasing by 16.2% year-on-year[4]. - China's GDP growth is expected to exceed 8% for the year, significantly higher than the government's target of 6%[167]. - The overall electricity demand in China has been rapidly increasing, with some provinces experiencing tight power supply and staggered power consumption[167]. Renewable Energy Capacity and Generation - The newly installed capacity of wind power in China was 10.84 GW, and PV power generation was 13.01 GW, representing year-on-year increases of 4.52 GW and 2.86 GW respectively[8]. - The Group's attributable power generation grew year-on-year by 8.1%, with wind power generation increasing by 14.7%[31]. - The total installed capacity of the Group's power plants as of June 30, 2021, was 3,346 MW, with a notable increase in project scale and complexity[74]. - The attributable installed capacity increased to 2,406 MW from 2,266 MW year-over-year, marking a growth of 6.2%[78]. Financial Performance - In the first half of 2021, the Group achieved a total income of RMB970,259,000, representing a decrease of 2.9% compared to the same period in 2020[29]. - Profit attributable to equity holders of the Group amounted to RMB403,213,000, reflecting an increase of 6.3% year-on-year[29]. - The Group's net assets as of June 30, 2021, were RMB6,706,971,000, with net assets per share at RMB0.79[29]. - The liability-to-asset ratio continued to decrease, indicating improved asset quality and financial stability[20]. Operational Efficiency and Technology - Technological advancements have significantly reduced the average cost of wind power, with a notable decline in wind turbine prices and costs per kW of wind power projects[12]. - Intelligent operation and maintenance (O&M) is experiencing rapid growth, driven by the increasing demand for efficiency improvements in existing power plants[13]. - The average theoretical photoelectric conversion efficiency of N-type PV cells is generally higher than 24%, indicating advancements in PV technology[12]. Project Management and Development - The Group has strengthened project management and coordination, ensuring safe and steady progress in project construction despite complex conditions[74]. - The Group aims to enhance its development capabilities by focusing on regions without power curtailment and optimizing project deployment[164]. - The Group will push forward project construction to ensure sustained growth in attributable installed capacity, with a focus on improving project management and safety quality[176]. Environmental Impact and Compliance - In the first half of 2021, the Group achieved significant reductions in carbon dioxide, sulfur dioxide, and nitrogen oxide emissions compared to conventional power plants, contributing to lower air pollution[122]. - The Group's efforts in environmental protection and compliance are integrated into its strategic and operational practices[117]. - The Group's initiatives in ecological and environmental protection have established a positive image in local investment and development[119]. Employee Development and Welfare - The Group has established a series of talent training programs, including apprenticeship and various development initiatives, to enhance employee skills and business efficiency[150]. - The Group emphasizes occupational health and safety, providing regular health checkups and safety training to ensure employee well-being[153]. - The Group has implemented various employee welfare programs, including a mutual aid fund that provided RMB58,000 in subsidies in the first half of 2021[157]. Strategic Initiatives and Future Outlook - The Group aims to innovate its development model, enhancing regional layout and capturing market share by developing various integrated resource projects such as PV and agriculture[179]. - The Group will actively develop its services businesses to achieve multifaceted development and market expansion[172]. - The introduction of favorable policies is expected to facilitate the long-term development of the renewable energy industry[168]. Financing and Investment - The Group achieved a net increase in loan amount of RMB315 million through financing replacement for existing power plants, with the financing cost of new projects decreasing by 0.28% to 5.32%[86]. - The Group actively expanded new financing channels and maintained good communication with various financial institutions to enhance financing flexibility[88]. - The Group is focused on replacing subsidized projects with grid parity projects to improve asset quality[91].

Financial Performance - The Group achieved a revenue of RMB 2.001 billion in 2020, representing a year-on-year increase of 9.0%[12]. - The profit attributable to equity holders of the Group was RMB 673 million, reflecting an increase of 11.4% over the previous year[12]. - The Group's attributable power generation amounted to 4.75 billion kWh, which is an increase of 8.7% compared to last year[13]. - The net profit from the Group's wholly-owned power plants reached RMB 732 million, marking a 16.5% increase over the same period last year[13]. - The Group's basic earnings per share rose to RMB 8.18 cents, up from RMB 7.22 cents in 2019, while diluted earnings per share increased to RMB 7.86 cents from RMB 6.86 cents[59]. - The Group achieved a year-on-year growth in revenue, with profit attributable to equity holders reaching a record high[53]. - The Group achieved a total revenue of RMB2,000,754,000, representing a 9.0% increase compared to RMB1,835,922,000 in 2019[59]. - The Group's net profit from jointly-owned power plants was RMB 131,852,000, down 22.5% from RMB 170,042,000 in 2019[96]. Operational Challenges - The company faced significant operational impacts due to pandemic-related restrictions, affecting project development and construction timelines[9]. - Strict epidemic prevention measures were implemented, leading to restrictions on economic activities and logistics[9]. - The pandemic resulted in delays in equipment repairs and increased power curtailment in some regions[9]. - The ongoing COVID-19 epidemic poses uncertainties that may affect power demand and supply chain management, impacting the Group's operations[161]. Asset Management and Quality - The liability-to-asset ratio decreased by 3.25 percentage points year-on-year, reaching 66.74%[11]. - The Group's liability-to-asset ratio decreased by 3.25 percentage points compared to the same period last year, indicating improved asset quality[12]. - The Group's asset structure was optimized to enhance shareholder value[79]. - The Group's reliance on renewable energy subsidies decreased, improving the asset quality of power plants[117]. - The Group implemented a strategy of "build & transfer," significantly reducing gross renewable energy subsidy receivables and improving asset quality[54]. Renewable Energy Development - The Group plans to add over 1 million kW in production capacity during 2021, capitalizing on China's renewable energy development[19]. - The focus for 2021 includes strengthening the development of photovoltaic projects and organizing large-scale integrated resource development projects[24]. - The Group aims to continuously lower the Levelized Cost of Energy (LCOE) to enhance competitiveness in the market-oriented trading environment[23]. - The Group will adopt a "build & transfer" strategy to replace renewable energy subsidized projects with grid parity projects, improving overall asset quality[168]. - The Group aims to enhance asset management and reduce reliance on renewable energy subsidies by developing grid parity projects[164]. Technological Innovation - The Group focused on innovation, expanding research and development in intelligent O&M, energy IoT, big data analysis, and artificial intelligence technology[54]. - The intelligent O&M platform POWER+ was further developed, integrating online monitoring with offline operations for better data management[122]. - The Group's technological improvements effectively reduced electricity loss and enhanced the stability of power plant operations[107]. - Technical innovation, intelligent operation, and innovative financing will be employed to improve the efficiency of grid parity projects[176][178]. Environmental Impact - The Group achieved a reduction of 5,205 kilotons of CO2 emissions and 1,274 tons of SO2 emissions in 2020, contributing to a total accumulated reduction of 34,734 kilotons of CO2 and 24,700 tons of SO2 since inception[134]. - The Group's investment in wind and photovoltaic power plants has significantly contributed to reducing air pollution and greenhouse gas emissions[131]. - The Group's environmental protection management system focuses on ecological conservation and biodiversity protection throughout the life cycle of power plants[132]. Employee and Community Engagement - The Group expresses gratitude to shareholders and the community for their trust and support, emphasizing its commitment to entrepreneurial spirit and success[27]. - The Group provided over 1,000 hours of training courses in 2020 to meet the learning needs of employees across various categories and levels[150]. - The Group has donated approximately RMB 3 million over 13 consecutive years, supporting 1,238 outstanding students and rewarding 57 excellent teachers[146]. - The Group has established a scholarship program in collaboration with North China Electric Power University, promoting renewable energy education in China[146]. Strategic Focus and Future Plans - The Group plans to strengthen the development of photovoltaic projects, focusing on various integrated resource development projects[26]. - The Group will focus on enhancing the capabilities of its engineering construction team and project coordination to ensure timely project completion[170]. - The Group will actively develop its service businesses, aiming to build influential service brands in the industry[173]. - The Group's strategic focus remains on core power generation while actively developing related renewable energy industry chain businesses[121].

Economic Performance - In the first half of 2020, China's GDP growth turned positive at 3.2% year-on-year and 11.5% quarter-on-quarter, indicating a steady economic recovery[2]. - Cumulative electricity consumption in China recorded a 10.1% year-on-year decrease in February, rebounding to a 6.1% year-on-year increase in June[3]. Energy Consumption and Production - The share of clean energy consumption in overall energy consumption increased by 0.6 percentage points, with clean energy power generation accounting for 27.6% of total power generation[3]. - The national average utilization hours of wind power decreased by 10 hours year-on-year to 1,123 hours, while photovoltaic power utilization increased by 19 hours to 595 hours[6]. - Wind and solar power curtailment increased, contributing to a rise in electricity loss during the reporting period[22]. - The Group's attributable power generation recorded a slight increase of 2.5% compared to the same period last year, with wholly-owned power plants showing a growth of 6.6%[30]. - The total attributable PV power generation decreased by 7.4%, primarily due to a 5.3% reduction in light resources and increased solar power curtailment in regions like Tibet[29]. Financial Performance - In the first half of 2020, newly released Renminbi loans by financial institutions reached RMB12.33 trillion, the highest level in history, representing an increase of RMB2.31 trillion compared to the same period last year[14]. - The Group achieved a total income of RMB999,540,000 in the first half of 2020, representing a 3.8% increase compared to RMB963,349,000 in the same period last year[22]. - Profit attributable to equity holders decreased to RMB379,389,000, down 5.0% from RMB399,232,000 in the first half of 2019[22]. - Basic earnings per share were RMB4.60 cents, a decrease from RMB4.75 cents in the same period last year[22]. - The Group's net profit from jointly-owned power plants was RMB95,271,000, a decrease of 6.5% compared to RMB101,849,000 in the same period last year[57]. Project Development and Construction - The delay in project construction due to the COVID-19 epidemic contributed to insufficient new projects being put into production in the first half of the year[22]. - The construction management of wind power and photovoltaic projects continued to follow the policies established in 2019, promoting grid parity projects and state financial subsidies[6]. - The Group has two newly commenced construction projects with a total installed capacity of 300MW and attributable installed capacity of 164MW[59]. - The construction of nine ongoing projects with a total capacity of 646MW is progressing, all of which are wholly-owned projects[60]. Technological Advancements - The Group initiated a total of 49 technological transformation projects across various power plants during the reporting period[47]. - The Group's technological transformation initiatives contributed to an increase in power plants' availability despite some delays due to the epidemic[43]. - The Group's intelligent operation platform has been optimized to enhance the efficiency of power plant operations[48]. Environmental Impact - In the first half of 2020, the Group's electricity generation from wind and PV power plants resulted in a reduction of 2,735 kilotons of CO2 emissions, 651 tons of SO2 emissions, and 678 tons of NOX emissions compared to conventional power plants[108]. - The Group saved 1,066 kilotons of standard coal and 4,209 kilotons of water during the same period, contributing to significant environmental benefits[108]. - The Group's environmental protection measures included the use of low-noise wind turbines and other eco-friendly equipment to minimize environmental impact[104]. Safety and Human Resources - The Group maintained stable production and safety measures in power plants, ensuring no incidents of COVID-19 among employees[24]. - The Group spent over RMB 1 million on epidemic prevention materials, including masks and sanitizers, to ensure employee safety[139]. - A total of 132 job positions were created for the local labor force in the first half of the year, promoting local employment through localized recruitment[120]. - During the first half of 2020, the Group conducted over 60,000 hours of training classes for more than 3,200 participants[135]. Corporate Governance and Shareholder Information - As of June 30, 2020, Liu Shunxing holds 1,872,484,242 shares, representing approximately 22.32% of the total issued share capital[180]. - The Company has adopted a Share Award Scheme allowing the issuance of new shares, with 113,000,000 new awarded shares granted to selected persons[189]. - The substantial shareholders include CWPI holding 1,147,877,155 shares (13.68%), Huadian Fuxin holding 880,000,000 shares (10.49%), and Splendor Power Limited holding 697,607,087 shares (8.32%) of the company's issued share capital as of June 30, 2020[196].

Financial Performance - For the year ended December 31, 2019, the Group generated a revenue of RMB1,835,922,000, and realized a profit of RMB604,293,000, representing an increase of 29.8% compared to the previous year[6]. - In 2019, the Group achieved a total income of RMB1,835,922,000, representing a 29.8% increase compared to RMB1,414,070,000 in 2018[29]. - Profit attributable to equity holders of the Group amounted to RMB604,293,000, a 20.3% increase from RMB502,406,000 in the previous year[29]. - Basic earnings per share were RMB7.22 cents, up from RMB5.88 cents in 2018, while fully diluted earnings per share were RMB6.86 cents, compared to RMB5.87 cents in the prior year[29]. - The Group's net assets reached RMB5,969,201,000 as of December 31, 2019, an increase from RMB5,546,739,000 in 2018[29]. - The Group's net assets per share increased to RMB0.70 from RMB0.65 in the previous year[29]. Power Generation and Capacity - As of December 31, 2019, the Group's net assets reached RMB5,969,201,000, with attributable power generation of 4,368.1 GWh, an increase of 20.1% over the previous year[6]. - The power generation from wholly-owned wind power plants increased by 36.6% year-on-year, contributing to 89.1% of the Group's total revenue[6]. - The Group's attributable power generation increased by 20.1% year-on-year, with wholly-owned power plants seeing a 31.8% increase[30]. - The Group's attributable installed capacity was 963 MW, with 7 wholly-owned projects under construction totaling 394 MW and 9 new projects with a capacity of 637 MW[55]. - The Group's total installed capacity reached 2,394 MW in 2019, reflecting a 5.1% increase from 2,277 MW in 2018[58]. Technological Advancements and Efficiency - In 2019, the Group implemented 20 major technical transformations to enhance power generation efficiency, including turbine blade lengthening and ice accumulation prevention[8]. - The Group actively applied new technologies and processes to optimize design and procurement strategies, improving asset quality and power generation efficiency[7]. - The Group enhanced its investment in technical transformation of power plants and implemented intelligent operation management to improve asset quality and efficiency[29]. - The Group's investment in technical transformation of power plants contributed to continuous improvement in operational efficiency[40]. - The Group's intelligent energy cloud platform POWER+ has provided quality intelligent energy services to renewable energy power stations with a total capacity of over 7 GW[71]. Market and Industry Trends - The renewable energy industry in China has entered the era of grid parity, with significant cost reductions in photovoltaic power generation[13]. - The installed capacity of China's renewable power generation reached 794 GW by the end of 2019, representing a year-on-year increase of 9% and accounting for 39.5% of total installed capacity[16]. - The government announced the first batch of 20.76 GW wind and PV power generation projects for grid parity in 2019, which are progressing in an orderly manner[17]. - The overall prices of PV modules and crystalline silicon wafers displayed a consistent downward trend due to technological advancements, leading to a significant decrease in PV power generation costs[22]. - The renewable energy industry is expected to continue its stable growth despite external pressures, supported by proactive fiscal policies and a low interest rate environment[154]. Environmental and Social Responsibility - The Group achieved a reduction of 4,978 kilotons of CO2, 1,643 tons of SO2, and 1,580 tons of NOX emissions in 2019, contributing to a total accumulated reduction of 29,528 kilotons of CO2, 23,426 tons of SO2, and 20,992 tons of NOX since inception[95]. - The Group actively participated in poverty alleviation efforts across multiple provinces, including Heilongjiang, Jilin, Hebei, Anhui, Hunan, Hubei, Yunnan, and Guangxi, contributing manpower, resources, and finances to local economic development[99]. - The Group's commitment to environmental protection included measures such as advanced technologies and intelligent operations to enhance sustainability[90]. - The Group's community responsibility initiatives included various welfare programs aimed at improving living standards in areas where it operates[100]. - The Group's focus on clean energy development aligns with its commitment to corporate social responsibility, fostering positive relationships with local communities[98]. Operational Management and Safety - The Group maintained safe and stable production with no serious personal injuries or fatal accidents during the year[50]. - The Group conducted safety inspections and management training sessions in both spring and autumn of 2019, enhancing employee safety awareness[126]. - Emergency response trainings and first aid simulation drills were organized for on-site project staff to ensure their safety and health[130]. - The Group provided comprehensive safety protection gears and tools in compliance with power safety requirements across all power plants[130]. - The Group emphasizes a safe and healthy working environment, focusing on fire safety management and improving office conditions[123]. Employee Development and Corporate Culture - The Group launched an unattended or less-attended intelligent O&M model, significantly improving the efficiency of power plant operations and maintenance[114]. - The Group implemented a hierarchical and categorized talent incubation system, optimizing training systems and assessments to improve employee competencies[120]. - The Group organized various corporate culture events in 2019, enhancing team cohesiveness and employee satisfaction through activities like sports competitions and health lectures[123]. - The Group's focus on employee development includes encouraging professional qualification certifications to enhance employees' professional competence[118]. - The Group donated over RMB 105,000 to support an ex-employee's medical expenses, demonstrating its commitment to employee welfare[122]. Financing and Investment Strategies - The balance of bank and leasing loans increased to RMB 7,841,675,000 as of December 31, 2019, up from RMB 7,061,877,000 in 2018[132]. - The Group's financial strategies included diversified cooperation with financial institutions to safeguard capital for development and enhance asset quality[64]. - The GS Convertible Loan amounted to US$30,000,000, consisting of three tranches: US$12,000,000, US$9,000,000, and US$9,000,000[134]. - The net proceeds from the GS Convertible Loan are expected to be approximately US$29,650,000, allocated for working capital, interest repayment, and wind power plant construction[136]. - The Group has maintained a stable debt structure and diversified financing channels, consistently enjoying financing interest rates lower than the industry average[150]. Future Outlook and Strategic Focus - The Group aims to ensure steady growth in core power generation business amidst fierce industry competition[12]. - The Group plans to focus on production safety, project construction, and lowering the Levelized Cost of Energy (LCOE) in 2020[157]. - The Group will continue to optimize asset quality and adjust investment strategies to adapt to changes in the external operating environment[157]. - The Group will promote intelligent operation and enhance the efficiency of power generation through technical upgrades and centralized monitoring systems[161]. - The Group aims to improve its sustainable operation and risk control capabilities, optimizing asset quality and liability structures to maintain a reasonable gearing ratio and enhance capital utilization efficiency[171].

Financial Performance - For the year ended December 31, 2018, the Group generated a revenue of RMB1,414,070,000 and realized a profit of RMB502,406,000, representing an increase of 151.16% compared to the previous year[6]. - The Group achieved a total income of RMB1,414,070,000 in 2018, representing a 36.50% increase from RMB1,035,967,000 in 2017[35]. - Profit attributable to equity holders of the Group amounted to RMB502,406,000, a significant increase of 151.16% compared to RMB200,036,000 in the previous year[35]. - As of the end of 2018, the Group's net assets amounted to RMB5,546,739,000, with net assets per share increasing to RMB0.65 from RMB0.61 in 2017[37]. - The Group's bank loans and financial leasing amounted to RMB7,061,877,000 as of December 31, 2018, up from RMB5,497,520,000 in the previous year, resulting in a gearing ratio of 69.88%[112]. Power Generation and Capacity - The attributable power generation for 2018 was 3,635.77 million kWh, an increase of 48.55% over the previous year, with the power generation from wholly-owned and holding wind power plants increasing by 138.17%[6]. - The total installed capacity of newly commissioned wind and solar power plants in 2018 was 471MW, all of which are wholly-owned by the Group[6]. - As of December 31, 2018, the installed capacity attributable to the Group was 2,277MW, with 1,611MW from wholly-owned and holding power plants, representing 70.75% of the total installed capacity[6]. - The installed capacity of wind power plants accounted for 86.21% of the total capacity attributable to the Group[7]. - The Group added 10 new power plants with a total installed capacity of 471MW in 2018, compared to 439MW in the same period of 2017[61]. Technological Advancements - The Group focused on lowering the Levelized Cost Of Electricity (LCOE) by applying new technologies and processes, resulting in significantly higher efficiencies for newly installed power plants compared to existing ones[8]. - The POWER+ system has improved operation and maintenance levels, increasing equipment availability and power generation output, serving power plants with a total capacity of up to 5GW by the end of the year[9]. - The Group made progress in new business areas, including the development of the POWER+3.0 intelligent inspection system and advancements in financial leasing, energy storage, micro-grids, and distribution networks[9]. - The Group's investment in energy IoT technology development has strengthened its "smart operation and maintenance" platform[74]. - The Group has implemented a new energy operation mode combining centralized monitoring, big data analysis, and intelligent diagnostics[75]. Market and Industry Trends - In 2018, China's total electricity consumption reached 6.8449 trillion kWh, a year-on-year growth of 8.5%[16]. - The installed wind power and photovoltaic capacity in China reached 360 GW by the end of 2018, accounting for 18.9% of total installed capacity[16]. - The government has promoted the development of offshore wind power and energy storage, leading to a significant increase in the share of renewable energy in power consumption[21][22]. - The shift in policy orientation indicates that the renewable energy industry has entered an era of competitive bidding and grid parity[22][23]. - The renewable energy market is expected to maintain its competitive advantage due to ongoing technological advancements and cost reductions[124]. Environmental Impact and Sustainability - In 2018, the Group achieved a reduction of 4,395 kilotons of CO2 emissions, 1,439 tons of SO2, and 1,383 tons of NOX compared to conventional power plants[95]. - The Group saved 1,710 kilotons of standard coal and 6,917 kilotons of water through its wind and photovoltaic power plants[95]. - The cumulative reduction of CO2 emissions since inception reached 24,551 kilotons, while SO2 and NOX reductions totaled 21,783 tons and 19,413 tons respectively[95]. - The Group emphasizes high-standard corporate social responsibility, contributing to sustainable development and positive community relations[84]. - The Group's wind power plants contributed to the reduction of PM10 and PM2.5 emissions, aiding in haze reduction[94]. Financing and Investment - The Group's capital allocation was optimized, and financing channels were expanded through the issuance of green corporate bonds and convertible loans[66]. - The Group issued bonds of US$200 million during the year, with a focus on maintaining a stable debt structure and lower financing interest rates compared to peers[120]. - The Group aims to enhance its market presence through strategic expansion in the renewable energy sector[75]. - The Group plans to explore new business models in financial leasing, expanding into energy storage and frequency regulation projects[138]. - The Group aims to maintain a reasonable gearing ratio by enhancing asset management and optimizing the asset and liability structure[139]. Employee Development and Corporate Governance - As of December 31, 2018, the Group employed 1,493 full-time employees, an increase from 1,312 in 2017[104]. - The Group organized training sessions for over 450 participants, covering various management and professional skills[108]. - The Group has established a comprehensive training system, including online and offline training for different employee levels[108]. - The Group emphasizes a people-oriented approach to sustainable development, providing a supportive working environment for employees[106]. - The Group's human resource planning includes optimizing talent pipelines and training to enhance organizational capabilities[105]. Shareholder and Market Relations - The Group's five largest customers accounted for 64% of total sales, with the largest customer contributing 19%[103]. - The Group's five largest suppliers represented 89% of total procurement, with the largest supplier accounting for 36%[103]. - The proposed final dividend for the year ended December 31, 2018, is HK$0.02 per ordinary share, amounting to HK$170,254,000 (approximately RMB145,109,000)[166]. - The company aims to benefit shareholders by enhancing the net asset value per share through share repurchases[160]. - The Company entered into a convertible loan agreement with IFC for HK$233,800,000, consisting of three tranches totaling HK$233,800,000[67].