香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不對因本公告全部或任何部分內容而 產生或因依賴該等內容而引致的任何損失承擔任何責任。 KONG SUN HOLDINGS LIMITED 江 山 控 股 有 限 公 司 （於香港註冊成立之有限公司） （股份代號：295） 有關截至二零二二年十二月三十一日止年度 年報之 補充公告 茲提述江山控股有限公司（「本公司」，連同其附屬公司統稱「本集團」）於二零二三年四月 二十六日刊發之截至二零二二年十二月三十一日止年度（「二零二二年財政年度」）之年報（「年 報」）。除另行界定外，本公告所用詞彙與年報內所界定者具相同涵義。 董事會謹此補充以下額外資料，內容有關年報所披露於二零二二年十二月三十一日之提 供金融服務產生的應收貸款。 ...

Financial Performance - The company reported a total revenue of RMB 555.73 million for the year 2022, a decrease of 44% compared to RMB 992.76 million in 2021[10]. - Gross profit for 2022 was RMB 267.69 million, down 54% from RMB 580.40 million in the previous year[10]. - The company incurred a net loss of RMB 290.32 million in 2022, significantly improved from a loss of RMB 935.34 million in 2021[10]. - The company's revenue decreased by approximately 44.0% from RMB 992,756,000 for the year ended December 31, 2021, to RMB 555,727,000 for the year ended December 31, 2022, primarily due to a decline in electricity sales[41]. - Revenue from electricity sales dropped approximately 56.9% from RMB 895,825,000 for the year ended December 31, 2021, to RMB 385,695,000 for the year ended December 31, 2022, attributed to reduced total electricity generation following the sale of subsidiaries[43]. - The total electricity generation from solar power plants owned by the company decreased by approximately 57.0%, from 1,189,413 MWh to 511,840 MWh[43]. - Revenue from solar power plant operation and maintenance services increased by approximately 78.7%, from RMB 65,463,000 to RMB 116,991,000, due to the commencement of several service contracts[43]. - The company's gross profit decreased by approximately 53.9% from RMB 580,398,000 to RMB 267,689,000, with the gross profit margin declining from approximately 58.5% to 48.2%[46]. - Financial expenses decreased by approximately 62.7% from RMB 498,295,000 to RMB 186,081,000, due to a reduction in loans and borrowings[54]. Assets and Liabilities - The total assets of the company decreased to RMB 6.00 billion in 2022 from RMB 8.23 billion in 2021[10]. - Non-current assets totaled RMB 3.67 billion, down from RMB 4.44 billion in the previous year[10]. - The carrying amount of completed and in-progress solar power plants decreased from RMB 2,844,751,000 to RMB 2,049,134,000[55]. - Financial assets measured at fair value through other comprehensive income decreased by approximately 64.1% from RMB 1,186,361,000 as of December 31, 2021, to RMB 760,194,000 as of December 31, 2022[61]. - Accounts receivable, notes receivable, and other receivables decreased by approximately 16.2% from RMB 2,626,491,000 as of December 31, 2021, to RMB 2,200,899,000 as of December 31, 2022, primarily due to the sale of subsidiaries[63]. - Total loans and borrowings decreased by approximately 43.3% from RMB 3,587,727,000 as of December 31, 2021, to RMB 2,034,419,000 as of December 31, 2022, mainly due to reduced funding for sold subsidiaries[68]. - Cash and cash equivalents amounted to approximately RMB 301,979,000 as of December 31, 2022, down from RMB 699,574,000 as of December 31, 2021[65]. - The total amount of pledged assets as of December 31, 2022, was approximately RMB 998,866,000, down from RMB 2,054,066,000 as of December 31, 2021[74]. Credit Risk and Loans - The expected credit loss for loans was approximately RMB 18,771,000 in 2022, compared to RMB 12,767,000 in 2021, indicating an increase in loan impairment[18]. - The credit risk assessment involves evaluating factors such as repayment ability, repayment history, and collateral effectiveness[24]. - The credit committee, composed of five senior management members, is responsible for approving and monitoring the credit policies and loan portfolio[19]. - The company employs a general approach to measure expected credit losses for receivables[23]. - The company has identified six major clients with outstanding loans, with amounts ranging from RMB 3,300,000 to RMB 4,500,000, all at an annual interest rate of 12%[16]. - The company has increased its credit risk monitoring efforts, including sampling loan documents to ensure compliance with approval procedures[20]. - The company’s credit risk classification includes three stages, with significant increases in credit risk triggering different assessment protocols[24]. - The company is considering legal actions to recover loans from several customers, indicating a proactive approach to managing credit risk[31]. - The company has identified that the loans may incur certain losses but still possess recoverability, categorizing the risk level as stage three[31]. Employee and Governance - As of December 31, 2022, the group had approximately 769 employees, a decrease from 837 employees in 2021, with total employee benefits expenditure amounting to RMB 173,094,000, up from RMB 131,668,000 in 2021[81]. - The company emphasizes the importance of maintaining strong relationships with employees, customers, and business partners, providing competitive compensation and development opportunities[114]. - The board consists of six directors, including two executive directors, one non-executive director, and three independent non-executive directors[180]. - The company has complied with listing rules regarding the independence of directors, confirming that all independent non-executive directors are independent[181]. - The remuneration committee is responsible for formulating compensation policies and providing recommendations to the board regarding the remuneration of executive directors and senior management[198]. - The company has adopted a diversity policy for board members, considering various factors such as gender, age, and professional experience during the selection process[200]. Future Plans and Strategy - The company aims to optimize its asset structure and enhance the efficiency of power generation equipment in the future[8]. - The company plans to continue focusing on clean energy business and accelerate new business transformation practices[8]. - The group plans to continue operating solar power plants, optimize asset allocation efficiency, and enhance the performance of power station equipment while transitioning to new businesses in other energy and health sectors[86]. - The company is actively exploring investment opportunities in other energy, technology, and health sectors[7]. - The company is focused on mitigating grid power limitation risks by developing solar projects in regions with strong energy demand and improving inter-provincial transmission networks[120]. Compliance and Regulatory Risks - The company faces significant risks from government policy changes affecting the solar energy industry, including tax incentives and regulatory adjustments[119]. - The company operates primarily in China, and its performance is heavily influenced by the country's economic, political, and legal developments[122]. - The company has not engaged in foreign exchange hedging activities, which may expose it to currency depreciation risks affecting dividend payments to overseas shareholders[124]. - The company is committed to environmental sustainability and has adhered to relevant laws and regulations impacting its operations as of December 31, 2022[113]. Dividends and Shareholder Relations - The company did not recommend the payment of a final dividend for the year ended December 31, 2022[101]. - The company has no predetermined dividend payout ratio, and any changes to the dividend policy must be approved by the board[106][107]. - The company reported no distributable reserves as of December 31, 2022, indicating limited capacity for dividend distribution[128].

Financial Performance - The group reported a revenue of RMB 992.76 million in 2021, down from RMB 1,478.21 million in 2020, indicating a decrease of approximately 32.9%[16]. - The gross profit for 2021 was RMB 580.40 million, a decline from RMB 921.25 million in 2020, reflecting a decrease of about 37.0%[16]. - The net loss for the year was RMB 935.34 million, compared to a loss of RMB 625.73 million in 2020, representing an increase in losses of approximately 49.5%[16]. - Revenue from electricity sales dropped by about 34.9% from RMB 1,375,490,000 to RMB 895,825,000, primarily due to the sale of subsidiaries which reduced total electricity generation[26]. - Revenue from financial services decreased by approximately 19.5% to RMB 30.01 million in 2021, down from RMB 37.30 million in 2020[22]. - Revenue from the trading of liquefied natural gas plummeted by approximately 96.7% to RMB 1.45 million in 2021, compared to RMB 44.38 million in 2020[23]. - The group's revenue decreased by approximately 32.8% from RMB 1,478,209,000 for the year ended December 31, 2020, to RMB 992,756,000 for the year ended December 31, 2021[25]. - The group's gross profit decreased by approximately 37.0% from RMB 921,248,000 to RMB 580,398,000, with the gross profit margin declining from about 62.3% to 58.5%[30]. - Other net income increased by approximately 90.7% from RMB 18,202,000 to RMB 34,708,000, mainly due to the reversal of other payables[31]. - The net loss from the sale of subsidiaries amounted to approximately RMB 484,570,000 for the year ended December 31, 2021, compared to RMB 182,220,000 in 2020[33]. Assets and Liabilities - The total liabilities of the group decreased to RMB 4.47 billion as of December 31, 2021, down from RMB 9.60 billion in 2020, a reduction of about 53.4%[16]. - The total loans and borrowings decreased by approximately 42.9% to RMB 3,587,727,000 as of December 31, 2021, down from RMB 6,285,578,000 in 2020, primarily due to the sale of subsidiaries[52]. - Accounts receivable, notes receivable, and other receivables decreased by approximately 26.3% to RMB 2,626,491,000 as of December 31, 2021, from RMB 3,561,766,000 in 2020, mainly due to the sale of subsidiaries[46]. - The company's cash and cash equivalents amounted to approximately RMB 699,574,000, an increase of about 314.5% from RMB 168,947,000 in 2020[49]. - The company's accounts payable and other payables decreased by approximately 52.3% to RMB 506,230,000 as of December 31, 2021, from RMB 1,060,610,000 in 2020, primarily due to the sale of subsidiaries[48]. - Lease liabilities decreased to approximately RMB 145,238,000 as of December 31, 2021, from RMB 182,228,000 in 2020, mainly due to the sale of subsidiaries[55]. - The carrying amount of completed solar power plants and those under construction was approximately RMB 2,844,751,000 and RMB 6,904,000, respectively, as of December 31, 2021[39]. Operational Highlights - In 2021, the total installed capacity of the group reached 529.8 MW, with a total power generation of approximately 1,189,413 MWh, representing a 3.3% increase compared to 2020[13]. - The group holds 17 operational solar power plants across various provinces in China, including Shaanxi, Anhui, and Henan[20]. - The group aims to optimize its solar power asset structure and enhance the efficiency of power generation equipment in the future[13]. - The group plans to continue exploring investment opportunities in the clean energy sector and expand its business operations[13]. - Revenue from providing solar power plant operation and maintenance services increased by approximately 211.2% from RMB 21,038,000 to RMB 65,463,000, attributed to new service contracts[26]. Governance and Management - The company has adopted a stock option plan to incentivize and reward eligible participants contributing to the group's business success[65]. - The company has established an audit committee to oversee financial reporting, risk management, and internal control principles[179]. - The remuneration committee is responsible for determining the remuneration of executive directors and senior management, ensuring that performance-linked pay is aligned with corporate goals[182]. - The nomination committee confirmed that the current board structure is appropriate and does not require changes as of December 31, 2021[187]. - The chairman and CEO roles are currently held by the same individual, which the board believes ensures consistency in leadership and effective strategic planning[175]. - The company has established a comprehensive insurance policy to protect directors against legal liabilities arising from corporate activities[173]. Market and Industry Outlook - The clean energy industry is expected to experience new development opportunities driven by global climate goals and supportive government policies in China[67]. - The company faces significant risks from government policy changes affecting the solar energy industry, including tax incentives and feed-in tariffs[97]. - Since 2014, the national power generation capacity utilization rate has declined due to slower electricity consumption growth, leading to concerns about grid curtailment for solar energy projects[98]. - Electricity prices, a major driver of the company's profitability, may decrease to levels comparable to coal energy, impacting the profitability of new solar energy projects[99]. - The company is focused on developing solar projects in regions with strong energy demand to mitigate grid curtailment risks[98]. Employee and Social Responsibility - The company emphasizes the importance of maintaining good relationships with employees, customers, and business partners for sustainable development[92]. - The total contributions to the retirement plan recorded in the consolidated income statement for the year ended December 31, 2021, amounted to approximately RMB 24,620,000, an increase from RMB 15,325,000 in 2020[154]. - The company has established a mandatory provident fund plan for employees in Hong Kong, with both employer and employee contributing 5% of the employee's relevant income, capped at HKD 30,000 per month[154]. - The company is committed to environmental sustainability and has implemented practices to ensure effective resource utilization[91]. Shareholder Information - The company did not purchase, sell, or redeem any of its listed securities during the year ended December 31, 2021[134]. - The company has not reported any distributable reserves as of December 31, 2021, indicating potential limitations on dividend payments[106]. - The board does not recommend the payment of a final dividend for the year ending December 31, 2021[82]. - The company has no predetermined dividend payout ratio, and any changes to the dividend policy must be approved by the board[86].

Financial Performance - For the first half of 2021, the company reported revenue of approximately RMB 563.68 million, a decrease of 27.2% compared to RMB 774.25 million in the same period of 2020[10]. - The gross profit for the first half of 2021 was approximately RMB 345.35 million, down 29.3% from RMB 488.44 million in the first half of 2020[10]. - The company incurred a loss of RMB 153.30 million in the first half of 2021, compared to a loss of RMB 33.49 million in the same period of 2020[10]. - Revenue from electricity sales decreased by approximately 27.5% to RMB 532,676,000 for the six months ended June 30, 2021, compared to RMB 734,915,000 for the same period in 2020[22]. - The company's gross profit decreased by approximately 29.3% to RMB 345,353,000 for the six months ended June 30, 2021, compared to RMB 488,442,000 for the same period in 2020[26]. - The net loss for the period was RMB 153.298 million, compared to a net loss of RMB 33.487 million in the prior year, representing a significant increase in losses[121]. - The company reported a loss per share of RMB 1.02 for the period, compared to a loss per share of RMB 0.34 in the previous year[120]. Operational Capacity - As of June 30, 2021, the total installed capacity of the company's solar power plants was 838.8 MW, with a total power generation of approximately 718,774 MWh, an increase of 2.4% year-on-year[7]. - The total installed capacity of completed solar power plants owned by the company as of June 30, 2021, is 838.8 MW, with 29 plants across various provinces in China[13]. - The installed capacity of completed solar power plants as of June 30, 2021, was 838.8 MW, down from 1,178.8 MW as of December 31, 2020[37]. Financial Position - Total liabilities as of June 30, 2021, were approximately RMB 69.54 billion, a reduction of about RMB 2.65 billion from December 31, 2020[7]. - The total assets of the company as of June 30, 2021, were approximately RMB 115.03 billion, down from RMB 143.03 billion at the end of 2020[10]. - Accounts receivable increased by approximately 15.1% to RMB 4,100,389,000 as of June 30, 2021, from RMB 3,561,766,000 as of December 31, 2020[44]. - The company's liabilities-to-equity ratio was approximately 1.22 as of June 30, 2021, compared to 1.36 as of December 31, 2020[49]. - The company's equity attributable to owners was RMB 4.466 billion, down from RMB 4.621 billion at the end of 2020, a decrease of 3.3%[126]. Cash Flow - The net cash flow from operating activities for the six months ended June 30, 2021, was RMB 399,849,000, compared to RMB 604,165,000 for the same period in 2020, representing a decrease of approximately 33.8%[141][142]. - The net cash flow from investing activities for the six months ended June 30, 2021, was RMB 800,707,000, a significant increase compared to RMB 138,674,000 in the previous year[166]. - The net cash flow used in financing activities for the six months ended June 30, 2021, was RMB 1,176,255,000, compared to RMB 813,672,000 in the same period of 2020, indicating an increase of approximately 44.7%[167]. - The company raised RMB 475,000,000 from new loans and borrowings during the six months ended June 30, 2021, compared to RMB 322,500,000 in the same period of 2020[167]. - The company repaid loans and borrowings totaling RMB 1,244,875,000 during the current period, which is an increase from RMB 831,022,000 in the previous year[167]. Strategic Focus - The company aims to optimize its solar power asset structure and enhance the efficiency of power generation equipment in the future[7]. - The company is actively exploring investment opportunities in other clean energy sectors and expanding its solar and wind power operation and maintenance services[7]. - The company plans to continue its focus on clean energy business and contribute to environmental protection through green low-carbon energy development[7]. - The company plans to continue advancing its solar power plant operations strategy and optimize asset allocation efficiency to ensure cash flow security[67]. - The company will continue to explore investment opportunities in other clean energy sectors to enhance asset returns and shareholder value[67]. Employee and Governance - The company has approximately 660 employees as of June 30, 2021, an increase from 622 employees as of December 31, 2020[63]. - The company has adopted the corporate governance code as per the listing rules, ensuring investor confidence[108]. - The company believes that consolidating the roles of Chairman and CEO under the same individual enhances internal leadership consistency[111]. Share Option Plan - The total number of shares that can be issued upon the exercise of all options granted under the share option plan shall not exceed 10% of the total issued shares of the company at the time the plan was adopted, which is 176,266,251 shares[76]. - The share option plan is valid for ten years from the date of adoption, which is July 21, 2019, and no further options can be granted after the expiration date[84]. - The options granted but not exercised as of June 30, 2021, include 16,000,000 shares at an exercise price of HKD 0.30, representing 0.11% of the total issued shares[87]. - The company may grant options exceeding the 10% limit to specified participants with shareholder approval, detailing the number and terms of the options in a circular to shareholders[79].

Financial Performance - The group achieved revenue of RMB 1,478.21 million in 2020, a decrease from RMB 2,079.70 million in 2019, representing a decline of approximately 29%[14] - The gross profit for 2020 was RMB 921.25 million, down from RMB 1,097.74 million in 2019, indicating a decrease of about 16%[14] - The net loss for the year was RMB 625.73 million, compared to a loss of RMB 698.72 million in 2019, showing an improvement of approximately 10%[14] - Revenue from electricity sales decreased by approximately 18.8% from RMB 1,693,916,000 in 2019 to RMB 1,375,490,000 in 2020, primarily due to a reduction in total power generation[27] - Total revenue for the company decreased by approximately 28.9%, from RMB 2,079,704,000 in 2019 to RMB 1,478,209,000 in 2020[26] - The company's gross profit decreased by approximately 16.1%, from RMB 1,097,739,000 in 2019 to RMB 921,248,000 in 2020, while the gross profit margin increased from approximately 52.8% to 62.3%[30] - Other net income increased by approximately 290.9%, from RMB 4,656,000 in 2019 to RMB 18,202,000 in 2020, driven by various factors including increased rental income[31] Assets and Liabilities - The group had a total asset value of RMB 14,303.32 million in 2020, down from RMB 18,672.09 million in 2019, reflecting a decrease of about 23%[14] - Non-current assets totaled RMB 7,197.42 million, a significant drop from RMB 11,250.54 million in 2019, indicating a decline of approximately 36%[14] - The carrying value of completed and under-construction solar power plants was approximately RMB 5,346,495,000 and RMB 11,909,000, respectively, as of December 31, 2020, down from RMB 8,626,215,000 and RMB 121,270,000 in 2019[40] - Accounts receivable, notes receivable, and other receivables decreased by approximately 17.0% to RMB 3,561,766,000 from RMB 4,292,131,000, primarily due to reclassification of RMB 1,057,105,000 related to the sale of subsidiaries[47] - The total liabilities to equity ratio improved to approximately 1.36 from 1.78 in the previous year, indicating a reduction in leverage[50] - As of December 31, 2020, the total loans and borrowings of the group amounted to approximately RMB 6,285,578,000, a decrease of about 35.0% compared to RMB 9,670,077,000 as of December 31, 2019[52] Operational Focus and Strategy - The group plans to focus on clean energy business, optimizing solar power asset structure and enhancing operational efficiency[11] - The group is actively exploring opportunities in the clean energy sector and technology finance, including internet micro-loans[11] - The company plans to optimize asset allocation efficiency and ensure cash flow security while enhancing the operational efficiency of power plants[67] - The company is committed to advancing green finance and inclusive finance business development, exploring investment opportunities in other clean energy sectors to enhance asset returns and shareholder value[67] Environmental Commitment - The group aims to contribute to environmental protection and promote green low-carbon energy development in China[11] - The company is committed to environmental sustainability and has implemented practices to ensure effective resource utilization[92] Corporate Governance - The company has adhered to the corporate governance code throughout the year, with specific deviations disclosed[172] - The audit committee has reviewed and confirmed the accounting principles and practices adopted by the group for the year ended December 31, 2020[165] - The company is committed to enhancing investor confidence through good corporate governance practices[172] - The board consists of six members, including two executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced composition[181] Employee and Management Information - The total employee benefit expenses for the year amounted to approximately RMB 138,682,000, down from RMB 185,597,000 in 2019, with approximately 622 employees as of December 31, 2020[64] - The company’s remuneration policy aims to attract and retain talented employees, including basic salary, short-term bonuses, and long-term incentives such as stock options[195] - The company has established a mandatory provident fund scheme for employees in Hong Kong, managed by independent trustees[159] Stock Options and Shareholder Information - The stock option plan allows for a maximum of 10% of the total issued shares to be granted, equating to 176,266,251 shares[119] - The total number of stock options granted under the stock option plan as of December 31, 2020, is 432,840,000, with 400,170,000 options remaining unexercised[127] - Major shareholder Poly Longma Asset Management Limited holds 9,258,965,000 shares, representing 61.87% of the company's equity[152] Risks and Challenges - The company faces significant risks from government policies affecting the solar energy industry, including potential changes to tax incentives and feed-in tariffs[97] - The company acknowledges that electricity prices are a major driver of profitability and may be adjusted to align with coal energy prices in the future[99]

Solar Power Industry Performance - In the first half of 2020, the installed capacity of solar power in China reached 11.52 GW, with a generation of 127.8 billion kWh, representing a year-on-year growth of 20%[48]. - The average utilization hours for solar power generation increased by 19 hours year-on-year, totaling 595 hours[48]. - The company has 8 projects totaling 470.65 MW included in the renewable energy subsidy list, as part of the government's support for the solar power industry[49]. - The Chinese government continues to implement policies to support the development of the solar power industry, including the promotion of grid parity projects[49]. - The company reported that the impact of the COVID-19 pandemic on the solar power industry was relatively minor, with recovery in production and operations by the second quarter[48]. - The global solar power market is expected to continue its growth trajectory despite potential impacts from the COVID-19 pandemic, with optimistic forecasts for installed capacity and generation in the coming years[123]. - Domestic solar power installation demand in China is anticipated to be minimally affected by the pandemic, driven by uncompleted competitive projects from 2019 and new competitive projects[123]. Financial Performance - Revenue for the first half of 2020 is RMB 774.25 million, a decrease of approximately 33.1% from RMB 1,156.69 million in the same period of 2019[52][65]. - Gross profit for the first half of 2020 is RMB 488.44 million, down from RMB 605.46 million in the same period of 2019[52]. - The group recorded a net loss of RMB 33.49 million for the first half of 2020, an improvement from a loss of RMB 40.91 million in the same period of 2019[52]. - Revenue from power sales amounted to RMB 735 million, while revenue from solar power plant operation and maintenance services increased by 2,293.4% to RMB 13.04 million[50]. - Revenue from financial services decreased by approximately 22.4% to RMB 13.7 million compared to RMB 17.65 million in the same period of 2019[60]. - Revenue from the sale of liquefied natural gas plummeted by approximately 94.5% to RMB 12.59 million from RMB 230.02 million in the same period of 2019[61]. - Revenue from electricity sales decreased by approximately 19.1% to RMB 734,915,000 for the six months ended June 30, 2020, compared to RMB 908,475,000 for the same period in 2019[67]. - Total power generation from solar power plants owned by the company was approximately 983,265 MWh, a decrease of about 14.7% from 1,152,288 MWh for the same period in 2019[67]. - Gross profit decreased by approximately 19.3% to RMB 488,442,000 for the six months ended June 30, 2020, from RMB 605,461,000 for the same period in 2019, while gross margin increased from 52.3% to 63.1%[72]. - Administrative expenses decreased by approximately 36.0% to RMB 113,765,000 for the six months ended June 30, 2020, from RMB 177,627,000 for the same period in 2019[74]. - Financial expenses decreased by approximately 8.6% to RMB 394,885,000 for the six months ended June 30, 2020, from RMB 431,828,000 for the same period in 2019[78]. Assets and Liabilities - The total value of non-current assets is RMB 10.50 billion, down from RMB 11.25 billion at the end of 2019[52]. - The total liabilities amount to RMB 10.65 billion, a decrease from RMB 13.18 billion at the end of 2019[52]. - The carrying amount of solar power plants completed and under construction was approximately RMB 8,293,403,000 as of June 30, 2020, down from RMB 8,626,215,000 as of December 31, 2019[81]. - As of June 30, 2020, the fair value of financial assets measured at fair value through profit or loss was approximately RMB 19,936,000, a decrease of 29.4% from RMB 28,198,000 as of December 31, 2019, representing about 0.1% of total assets[92]. - Accounts receivable and notes receivable increased by approximately 22.4% from RMB 4,292,131,000 on December 31, 2019, to RMB 5,253,400,000 as of June 30, 2020, primarily due to an increase in accounts receivable[93]. - Cash and cash equivalents amounted to approximately RMB 181,936,000 as of June 30, 2020, a decrease from RMB 194,156,000 as of December 31, 2019[97]. - Total loans and borrowings decreased by approximately 8.7% from RMB 9,670,077,000 on December 31, 2019, to RMB 8,832,577,000 as of June 30, 2020[101]. - The net debt-to-equity ratio was approximately 1.67 as of June 30, 2020, down from 1.78 as of December 31, 2019[97]. - Accounts payable decreased by approximately 23.5% from RMB 1,669,254,000 on December 31, 2019, to RMB 1,276,715,000 as of June 30, 2020, primarily due to the completion of construction costs for solar power plants[96]. Corporate Governance and Management - The company confirmed compliance with the corporate governance code throughout the review period, with no deviations reported[171]. - The audit committee reviewed the group's condensed consolidated financial statements for the six months ended June 30, 2020, with no disagreements noted[181]. - The board believes that consolidating the roles of chairman and CEO under the same individual enhances internal leadership consistency and strategic planning efficiency[174]. - The company has adopted the standard code for securities trading by directors, confirming compliance by all directors during the review period[179]. - The company has made changes to its board composition, including the appointment and resignation of several directors on June 4, 2020[199]. Employee and Operational Insights - Total employee benefit expenses for the six months ended June 30, 2020, amounted to approximately RMB 83,427,000, a decrease from RMB 111,639,000 for the same period in 2019[118]. - The group employed approximately 654 employees as of June 30, 2020, compared to 614 employees as of December 31, 2019[118]. - The group has not made any significant investments, acquisitions, or disposals during the six months ended June 30, 2020[122]. - The group continues to expand its business operations and aims to provide better overall returns for shareholders[50]. Legal and Contingent Liabilities - The group has a pending lawsuit involving a claim for equipment purchase amounting to approximately RMB 52,900,000 and a total of RMB 20,900,000 in damages[112]. - The value of the land mortgage related to the lawsuit is approximately RMB 53,700,000, which exceeds the claimed equipment purchase amount[112]. - The court ruled that the group is not liable for the claims made by Beijing Sifang, leading to the dismissal of the claims against the group[113]. - The group has no other significant contingent liabilities as of June 30, 2020[117]. Future Strategies and Goals - The company aims to enhance its investment and operation strategies in solar power stations, optimize power asset allocation, and improve generation efficiency[123]. - The company plans to actively participate in electricity market trading and accelerate its transition to a light asset business model[123]. - The goal is to become a leading service provider for renewable energy stations in China, enhancing overall competitiveness and operational performance[123].

Financial Performance - The group achieved a revenue of RMB 2,079,704,000 in 2019, an increase of 10.6% compared to RMB 1,881,004,000 in 2018[16] - The group reported a net loss of RMB 698,721,000 for the year, compared to a profit of RMB 16,277,000 in 2018[16] - Total revenue increased by approximately 10.6% from RMB 1,881,004,000 in 2018 to RMB 2,079,704,000 in 2019, primarily driven by the increase in liquefied natural gas sales[28] - Revenue from financial services increased by approximately 205.5% from RMB 12,891,000 in 2018 to RMB 39,385,000 in 2019[24] - Revenue from the sale of liquefied natural gas rose by approximately 147.9% from RMB 131,659,000 in 2018 to RMB 326,333,000 in 2019[25] - Revenue from electricity sales slightly decreased by approximately 2.3% to RMB 1,693,916,000 in 2019, attributed to an increase in total generation from lower-priced grid-connected solar power plants[29] - Gross profit decreased by approximately 2.0% to RMB 1,097,739,000 in 2019, with a gross profit margin declining from approximately 59.6% to 52.8%[32] - The group reported a core loss of approximately RMB 256,721,000 for the year ended December 31, 2019, compared to a profit of RMB 5,419,000 in 2018[42] Assets and Liabilities - The total assets of the group amounted to RMB 18,672,085,000, down from RMB 20,420,116,000 in the previous year[16] - Non-current assets totaled RMB 11,250,539,000, a decrease from RMB 15,417,621,000 in 2018[16] - The total liabilities of the group were RMB 13,178,786,000, slightly down from RMB 13,816,288,000 in 2018[16] - The net book value of completed solar power plants decreased to approximately RMB 8,626,215,000 as of December 31, 2019, down from RMB 12,160,658,000 in 2018[43] - The net book value of interests in joint ventures increased to approximately RMB 226,691,000 as of December 31, 2019, compared to RMB 13,290,000 in 2018, primarily due to the reclassification of equity interests[44] - The group’s goodwill from the acquisition of subsidiaries decreased to approximately RMB 96,930,000 as of December 31, 2019, down from RMB 149,197,000 in 2018[45] - Accounts receivable, notes receivable, and other receivables decreased by approximately 7.6% from RMB 4,646,076,000 as of December 31, 2018, to RMB 4,292,131,000 as of December 31, 2019[50] - Cash and cash equivalents amounted to approximately RMB 194,156,000 as of December 31, 2019, down from RMB 256,310,000 as of December 31, 2018[54] - Total loans and borrowings decreased by approximately 16.8% from RMB 11,617,235,000 as of December 31, 2018, to RMB 9,670,077,000 as of December 31, 2019[56] Operational Highlights - The group's total installed capacity reached 1,629.3 MW, with a total generation of approximately 2,195,435 MWh in 2019[13] - The total installed capacity of completed solar power plants owned by the company reached 1,629.3 MW as of December 31, 2019[21] - The total generation from solar power plants owned by the company was approximately 2,195,435 MWh in 2019, a slight increase of about 0.2% from 2,190,064 MWh in 2018[29] - The average utilization hours of solar power generation increased by 54 hours year-on-year, while the average curtailment rate decreased by 1 percentage point[13] - The group aims to optimize power asset allocation and improve generation efficiency while actively participating in electricity market trading to enhance its competitiveness in the renewable energy sector[74] Strategic Focus and Future Plans - The group plans to focus on clean energy and green inclusive finance, optimizing its balance sheet and operational model[14] - The group is actively exploring light asset businesses and other clean energy investment opportunities[13] - The company is considering strategic acquisitions to enhance its product offerings and market presence, with potential targets identified[79] - The company is investing in R&D, allocating E% of its revenue towards the development of new technologies and products[79] - Market expansion efforts include entering F new regions, aiming to increase market share by G% over the next two years[79] Challenges and Risks - The company faces significant risks from government policy changes affecting the solar energy industry, including potential modifications to tax incentives and feed-in tariffs[112] - The company acknowledges that electricity prices are a major driver of profitability and anticipates potential reductions in government subsidies for solar energy projects[115] - The company is focused on mitigating grid curtailment risks by developing solar projects in regions with strong energy demand and improving inter-provincial transmission networks[113] - The company has not engaged in foreign exchange hedging activities, which may expose it to risks from currency fluctuations affecting dividend payments to overseas shareholders[117] Corporate Governance - The company has complied with the corporate governance code throughout the year ended December 31, 2019, except for specific deviations disclosed[188] - The board consists of nine members, including two executive directors, three non-executive directors, and four independent non-executive directors[191] - The company has established a written terms of reference for the audit committee in compliance with listing rules[180] - The company has purchased adequate insurance to protect directors against legal liabilities arising from corporate activities[195] - The roles of Chairman and CEO are currently held by the same individual, Jin Yanbing, which the board believes ensures consistency in leadership and effective strategic planning[197] Employee and Stakeholder Relations - As of December 31, 2019, the group had approximately 614 employees in Hong Kong and China, with total employee benefits expenses amounting to RMB 185,597,000, a decrease from RMB 253,776,000 in 2018[66] - The company emphasizes the importance of maintaining strong relationships with employees, customers, and business partners, providing competitive compensation and development opportunities[109] Impact of COVID-19 - The company noted that the COVID-19 pandemic has not had a significant impact on its operations, although there have been delays in settlements and cash collections[104] - The company is actively monitoring the COVID-19 situation and its potential impact on financial performance[104]

Financial Performance - In the first half of 2019, the group achieved revenue of approximately RMB 1,156,690,000, representing a year-on-year growth of 35.6%[14] - The company's revenue increased by approximately 35.6% from RMB 852,890,000 in the six months ended June 30, 2018, to RMB 1,156,690,000 in the same period of 2019[32] - Revenue for the six months ended June 30, 2019, was RMB 1,156,690,000, representing an increase of 35.6% compared to RMB 852,890,000 for the same period in 2018[149] - Revenue from electricity sales increased by approximately 7.4% from RMB 846,251,000 to RMB 908,475,000, with total installed capacity of solar power plants at 1,729.3 MW as of June 30, 2019[33] - Revenue from liquefied natural gas trading was RMB 230,020,000, with no revenue reported in the same period of 2018, marking a new revenue stream[3] - Revenue from financial services surged by approximately 236.4% from RMB 5,246,000 to RMB 17,650,000[34] - The gross profit for the first half of 2019 was approximately RMB 605,461,000, reflecting a significant increase compared to the previous year[14] - Gross profit rose by about 7.0% from RMB 566,000,000 to RMB 605,461,000, while the gross margin decreased from 66.4% to 52.3% due to the lower margin of the newly established liquefied natural gas trading segment[37] - The net loss for the period was RMB 40,909,000, a significant decline from a profit of RMB 14,970,000 in the prior year[150] - Other comprehensive loss for the period amounted to RMB 364,696,000, compared to a loss of RMB 44,851,000 in the previous year[150] Operational Metrics - The total installed capacity of the group reached 1,729.3 MW as of June 30, 2019, with total electricity generation of approximately 1,152,288 MWh during the same period[14] - The total electricity generation from solar power in the first half of 2019 was 1,067 billion kWh, a year-on-year increase of 30%[11] - The average utilization hours for solar power generation increased by 10 hours year-on-year to 576 hours, with a national average curtailment rate of 2.4%, down by 1.2% year-on-year[11] - The group holds 46 connected solar power stations across various provinces in China, including Shaanxi, Xinjiang, and Gansu[14] - The company has a total of 46 completed solar power plants with a combined capacity of 1,729.3 MW as of June 30, 2019[22] Investment and Strategic Focus - The group is actively exploring investment opportunities in other clean energy sectors, including wind power and liquefied natural gas trading[14] - The company plans to focus on clean energy and green inclusive finance, aiming to enhance operational efficiency and accelerate the transformation of light asset businesses[14] - The company plans to continue investing in and developing solar power plants in China[21] - The group plans to continue investing in and operating solar power stations, optimizing power asset allocation, and expanding liquefied natural gas trading business[79] - The company plans to continue its strategic investments and focus on expanding its market presence, particularly in renewable energy sectors[168] Financial Position and Assets - The total value of non-current assets decreased from RMB 15,417,621,000 to RMB 14,047,441,000, while current assets increased from RMB 5,002,495,000 to RMB 6,014,457,000[17] - Total assets decreased slightly from RMB 20,420,116,000 to RMB 20,061,898,000, while total liabilities increased from RMB 13,816,288,000 to RMB 13,856,874,000[17] - The net book value of completed solar power plants as of June 30, 2019, was approximately RMB 10,928,205,000, down from RMB 12,160,658,000 as of December 31, 2018[49] - The fair value of financial assets measured at fair value through other comprehensive income decreased by approximately 12.9% to RMB 1,783,789,000 as of June 30, 2019, from RMB 2,047,434,000 as of December 31, 2018[53] - The carrying amount of goodwill from past acquisitions of subsidiaries was approximately RMB 149,151,000 as of June 30, 2019, slightly down from RMB 149,197,000 as of December 31, 2018[51] Cash Flow and Financing - Cash and cash equivalents decreased to RMB 179,217,000 from RMB 256,310,000, reflecting liquidity challenges[153] - The company raised RMB 683,000,000 from new loans and borrowings during the six months ended June 30, 2019, compared to RMB 862,000,000 in the same period of 2018[164] - The cash flow from financing activities showed a net outflow of RMB 282,148,000 for the six months ended June 30, 2019, compared to a net inflow of RMB 193,744,000 in the same period of 2018[164] - The net cash generated from operating activities was RMB 117,654,000, an increase from RMB 102,529,000 in the same period of 2018, representing a growth of approximately 14.7%[163] Corporate Governance and Compliance - The company has adopted the corporate governance code as its corporate governance practices, ensuring investor confidence[132] - The company has maintained compliance with the corporate governance code, with specific measures taken to ensure adherence[133] - The audit committee reviewed the group's condensed consolidated financial statements for the six months ended June 30, 2019, with no disagreements noted[142] - The board of directors confirmed that all directors complied with the standards set out in the code for securities transactions during the six months ended June 30, 2019[139] Share Options and Equity - The company has implemented a share option scheme to incentivize and reward eligible participants contributing to the group's business success[83] - The total number of shares that can be issued upon the exercise of all options granted under the share option plan shall not exceed 10% of the total number of shares issued by the company as of the date of adoption of the plan, which is 176,266,251 shares[89] - The total number of options granted but not exercised as of June 30, 2019, is 840,330,000 shares, which corresponds to 5.32% of the total issued shares[101] - The company reported a total of 9,286,301,000 shares held by major shareholders, representing 62.06% ownership[121] - The company has granted stock options with a total of 207,680,000 shares, which accounts for 1.31% of the expanded issued share capital as of June 30, 2019[117] Market Outlook - The global solar power market added 47 GW of installed capacity in the first half of 2019, bringing the cumulative installed capacity to over 556 GW[79] - The group anticipates that China's solar power installed capacity could reach between 35 GW and 45 GW for the full year 2019, following a sluggish first half with less than 12 GW added[79] - The group aims to enhance its comprehensive competitiveness and influence in the solar power industry, solidifying its position as a leading enterprise in China[79]

Financial Performance - The company's revenue for 2018 was approximately RMB 1,881,004,000, reflecting a growth of about 47.1% year-on-year, while the gross profit was approximately RMB 1,120,612,000, an increase of about 36.4% from the previous year[19]. - The net profit for the year was RMB 16,277,000, a decrease from RMB 120,053,000 in the previous year[19]. - The company reported a basic earnings per share of RMB 0.10 for the year, down from RMB 0.80 in the previous year[19]. - The company's total revenue increased by approximately 47.1% from RMB 1,278,704,000 in 2017 to RMB 1,881,004,000 in 2018, primarily due to increased electricity sales[33]. - Revenue from electricity sales rose by about 38.2% from RMB 1,254,701,000 in 2017 to RMB 1,734,187,000 in 2018, driven by a significant increase in total electricity generation from solar power plants[34]. - The gross profit increased by approximately 36.4% from RMB 821,673,000 in 2017 to RMB 1,120,612,000 in 2018, while the gross profit margin decreased from about 64.3% to 59.6% due to the lower margin of the newly established liquefied natural gas trading segment[37]. - The company recorded its first revenue from liquefied natural gas trading amounting to approximately RMB 131,659,000 in 2018[36]. - Administrative expenses rose by approximately 26.6% from RMB 325,549,000 in 2017 to RMB 412,178,000 in 2018, mainly due to increased employee compensation and office rental costs[41]. - Financial expenses increased by approximately 60.8% from RMB 463,548,000 in 2017 to RMB 745,545,000 in 2018, attributed to the rise in the average number and capacity of solar power plants[44]. - Other income surged by approximately 4,401.4% from RMB 920,000 in 2017 to RMB 41,413,000 in 2018, driven by increased dividend income and office rental income[40]. Solar Power Capacity and Generation - The total installed capacity of solar power plants owned by the company reached 1,789.3 MW as of December 31, 2018, with a total power generation of approximately 2,190,064 MWh, representing a significant increase of about 39.8% compared to the previous year[15]. - The total electricity generation from the company's solar power plants reached approximately 2,190,064 MWh in 2018, a substantial increase of about 39.8% compared to 1,566,354 MWh in 2017[34]. - The total installed capacity of completed solar power plants was 1,789.3 MW as of December 31, 2018, down from 1,819.3 MW in 2017[45]. - As of December 31, 2018, the net book value of completed solar power plants was approximately RMB 12,160,658,000, an increase from RMB 11,634,405,000 in 2017[45]. - The company holds 48 completed solar power plants across various provinces in China, including Shaanxi, Xinjiang, and Gansu[15]. Strategic Focus and Future Plans - The company aims to focus on clean energy and green finance, continuing to develop its solar power business and optimize operational models to enhance the efficiency of power generation equipment[15]. - The company is exploring other clean energy investment opportunities and expanding its liquefied natural gas trading business, as well as continuing to develop technology finance services such as internet microloans and commercial factoring[15]. - The company plans to accelerate the transformation of its light asset business through the integration of production and finance to improve operational efficiency[15]. - The company plans to optimize its power asset allocation and actively participate in electricity market trading to increase revenue from power generation[82]. - The company aims to expand its liquefied natural gas trading business and promote green finance and inclusive finance to enhance asset returns[82]. - The company is committed to strengthening its competitive position and influence in the solar power industry, aiming to solidify its status as a leading enterprise in China's solar power sector[82]. Environmental Commitment - The company is committed to contributing to environmental protection and promoting low-carbon energy development in China[15]. - The company is committed to environmental sustainability and has adhered to relevant laws and regulations impacting its operations[112]. - The company has implemented measures to ensure effective resource utilization and promote recycling in its operations[112]. Governance and Management - The company’s board of directors consists of a mix of executive, non-executive, and independent non-executive directors, ensuring a diverse governance structure[166]. - The company has confirmed the independence of all independent non-executive directors according to the listing rules[172]. - The remuneration of directors is regularly monitored by the remuneration committee to ensure appropriateness[173]. - The audit committee has reviewed the consolidated financial statements for the year ended December 31, 2018, confirming the accounting principles adopted by the group[197]. - The company has not entered into any significant contracts with directors or related entities that could lead to conflicts of interest during the fiscal year[175]. Risks and Challenges - The company faces significant risks and uncertainties that may impact its financial condition and operational performance[117]. - Government policies significantly affect the solar energy industry, and any changes in tax incentives or regulations could have a major impact[118]. - The majority of the company's operations and revenue are expected to continue to come from China, where economic and political conditions are unpredictable[121]. - The company has not engaged in foreign exchange risk hedging activities, which may expose it to currency depreciation risks[124]. - Electricity prices are a major driver of profitability, and the company plans to accelerate technology development to reduce project costs in response to potential subsidy reductions[120]. Share Option Plan - The company has adopted a share option scheme to incentivize and reward eligible participants contributing to the group's business success[73]. - The total number of shares that can be issued upon the exercise of all options granted under the share option plan shall not exceed 10% of the total issued shares of the company at the time of adoption, which is 176,266,251 shares[145]. - The maximum number of shares that can be issued under the share option plan is capped at 30% of the total issued shares of the company at any time[148]. - The share option plan is valid for a period of ten years from the date of adoption, which is July 21, 2019[153]. - As of December 31, 2018, a total of 942,650,000 options were granted, with 867,830,000 options remaining unexercised[156]. - The exercise price for the options granted varies, with some priced at HKD 0.30 and others at HKD 0.41[156]. - The company has the authority to grant options exceeding the 10% limit with shareholder approval, provided that the total number of shares issued does not exceed 10% of the issued shares at the time of approval[146]. - The company reported a total of 207,680,000 options granted to directors, representing 1.31% of the total issued shares[156]. - The company has a provision for participants to accept options within 21 days of the offer date by paying HKD 1.00[151]. - The share options granted to the group members and advisors totaled 230,800,000, with 227,150,000 remaining unexercised[156]. - The company can terminate the share option plan at any time, but any options granted and not exercised will remain valid[153]. Employee Relations - Employee benefit expenses totaled approximately RMB 253,776,000 for the year, up from RMB 210,539,000 in 2017, with approximately 849 employees as of December 31, 2018[72]. - The company provides competitive compensation and career development opportunities to its employees[113]. - The company emphasizes the importance of maintaining strong relationships with employees, customers, and business partners for sustainable development[113]. Other Financial Information - The total assets of the company amounted to RMB 20,420,116,000, with total liabilities of RMB 13,816,288,000, resulting in a net asset value of RMB 6,603,828,000[19]. - The company managed a portfolio with a fair value of approximately RMB 81,143,000 as of December 31, 2018, down from RMB 200,281,000 in 2017[30]. - The company recorded a net loss of approximately RMB 53,613,000 from the sale of its entire Chinese listed stock investments in 2018[30]. - Financial assets measured at fair value through other comprehensive income increased by approximately 29.9% to RMB 2,047,434,000 as of December 31, 2018, from RMB 1,576,206,000 in 2017[50]. - Accounts receivable, notes receivable, and other receivables increased by approximately 22.8% to RMB 4,646,076,000 as of December 31, 2018, from RMB 3,797,732,000 in 2017[54]. - Total loans and borrowings increased by approximately RMB 2,277,297,000 to RMB 11,617,235,000 as of December 31, 2018, compared to RMB 9,339,938,000 in 2017[61]. - The cash and cash equivalents were approximately RMB 256,310,000 as of December 31, 2018, down from RMB 445,638,000 in 2017[57]. - Accounts payable and other payables decreased by approximately 49.0% to RMB 1,903,547,000 as of December 31, 2018, from RMB 3,733,808,000 in 2017[56]. - The capital expenditure for solar power plants was approximately RMB 222,743,000 for the year ended December 31, 2018, significantly down from RMB 2,136,818,000 in 2017[58]. - The net debt-to-equity ratio was approximately 1.76 as of December 31, 2018, compared to 1.42 in 2017[57]. - As of December 31, 2018, the total principal amount of bonds outstanding was HKD 344,000,000 (approximately RMB 301,413,000), a decrease from HKD 477,000,000 (approximately RMB 402,656,000) in 2017[63]. - The group issued bonds totaling HKD 290,500,000 (approximately RMB 254,536,000) during the year, with net proceeds of approximately HKD 257,727,000 (approximately RMB 225,820,000) after issuance costs of about HKD 32,773,000 (approximately RMB 28,716,000)[63]. - The group repaid a total principal amount of HKD 423,500,000 (approximately RMB 371,071,000) in bonds during the year, with no repayments in 2017[63]. - The estimated interest on the bonds for the year was approximately HKD 44,200,000 (approximately RMB 37,318,000), compared to HKD 43,523,000 (approximately RMB 37,710,000) in 2017[64]. - The group had pledged assets with a carrying value of approximately RMB 8,027,467,000 as of December 31, 2018, an increase from RMB 7,455,097,000 in 2017[68].