来源：搜狐 在12月23日的港股交易中，山高控股（00412.HK）以6.31港元每股收盘，显著上涨1.61%，全日成交量达516.14万股，成交额达到3246.2万港元，而其振幅 为3.38%。在这个动态的金融市场中，山高控股的表现吸引了众多投资者的目光，但它的市场表现究竟意味着什么呢？ 一、恒生指数的回暖与山高控股的对比 根据最新数据显示，同一天恒生指数上涨0.82%，收报19883.13点。今年以来，山高控股的表现却显得相对逊色：尽管过去一个月累计涨幅达12.91%，但整 体来看，其年内累计涨幅为2.31%，明显低于恒生指数高达15.68%的涨幅。这引发了投资者对其未来发展的深刻思考。 二、财务数据揭示业绩背后的隐忧 五、注重合规与可持续发展 透过山高控股的财务报表，我们看到了一些引人关注的数字。截止到2024年6月30日，公司实现营业总收入28.01亿元，同比略微减少0.16%。而更为严峻的 是，其归母净利润出现了-3.59亿元的大幅下滑，同比减少33.66%，这不仅警示着市场对其盈利能力的担忧，更是反映了公司运营管理中的潜在隐患。 此外，山高控股强调审慎合规的经营理念，这对于应对国内外复杂的政策环境 ...

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 5,580,913, an increase of 11.6% from RMB 4,998,261 in 2023[3] - Gross profit for the same period rose to RMB 2,635,982, up 18% from RMB 2,235,352 in the previous year[3] - Profit before tax increased to RMB 794,538, representing a 44.4% growth compared to RMB 550,087 in 2023[4] - Net profit for the year was RMB 692,790, a significant increase of 39.9% from RMB 495,118 in 2023[4] - Basic and diluted earnings per share rose to RMB 0.90, compared to RMB 0.22 in the previous year[4] - The company reported a total comprehensive income of RMB 270,043, recovering from a loss of RMB 318,634 in the previous year[5] - Total segment revenue for 2024 reached RMB 5,580,913,000, an increase from RMB 4,998,261,000 in 2023, representing a growth of approximately 11.6%[20] - The industrial investment segment generated revenue of RMB 4,423,147,000 in 2024, slightly down from RMB 4,497,817,000 in 2023, indicating a decrease of about 1.6%[20] - The standardized investment segment reported a loss of RMB 8,624,000 in 2024, compared to a loss of RMB 688,870,000 in 2023, showing significant improvement[20] - The non-standard investment segment achieved a profit of RMB 728,050,000 in 2024, recovering from a loss of RMB 340,025,000 in 2023[20] Assets and Liabilities - Non-current assets totaled RMB 41,008,163, slightly down from RMB 41,439,238 in 2023[6] - Current assets increased to RMB 25,166,199, compared to RMB 24,748,595 in 2023[7] - Total liabilities amounted to RMB 48,416,321, with current liabilities at RMB 20,550,048, up from RMB 19,199,633 in 2023[7] - The total assets of the group as of December 31, 2024, were approximately RMB 66,174,362,000, with total liabilities of approximately RMB 48,416,321,000, resulting in a net asset value of approximately RMB 17,758,041,000[50] - The total value of financial assets measured at fair value through other comprehensive income was RMB 868,011,000 in 2024, down from RMB 1,250,398,000 in 2023, indicating a decrease of approximately 30.5%[36] - The group’s total borrowings increased to approximately RMB 43.04 billion from RMB 41.65 billion in 2023[66] - The asset-liability ratio as of December 31, 2024, was approximately 65.04%, up from 62.93% in 2023[67] Cash Flow and Financing - The company’s cash and cash equivalents decreased to RMB 4,308,390 from RMB 5,202,038 in 2023[6] - The company issued USD 900,000,000 of 6.50% guaranteed perpetual securities on May 30, 2024, and RMB 500,000,000 of 2.24% ultra-short-term financing notes in August 2024, raising net proceeds of approximately USD 892,834,000 and RMB 499,630,000 respectively[75] - The financing costs for 2024 totaled RMB 1,792,736,000, a decrease from RMB 1,869,524,000 in 2023, reflecting a reduction of about 4.1%[27] Employee and Operational Metrics - Employee benefit expenses totaled RMB 284,342,000 in 2024, down from RMB 301,466,000 in 2023, indicating a decrease of approximately 5.7%[28] - The company had 1,992 employees as of December 31, 2024, down from 2,226 in the previous year, indicating a focus on optimizing workforce efficiency[77] Strategic Developments - The company has changed its presentation currency from Hong Kong dollars to Renminbi, reflecting its primary operations and transactions in mainland China[15] - The group has successfully acquired a controlling stake in Shandong High-speed New Energy, achieving a historic breakthrough in renewable energy indicators, with over 4 GW of renewable energy indicators obtained in 2024[55] - The group further strengthened its strategic position in the renewable energy sector by increasing its stake in Shandong High-speed New Energy, enhancing its market expansion and industry collaboration[55] - The group is focusing on the "AI computing power + data assets + scenario applications" digital economy ecosystem, actively promoting deep collaboration among its various industries[56] - The group signed a framework agreement with the Ulanqab Municipal Government to explore the creation of an integrated collaborative industrial ecosystem for "source-network-load-storage" in Inner Mongolia[56] Compliance and Governance - The company has complied with all corporate governance codes as per the Hong Kong Stock Exchange regulations during the reporting period[82] - The audit committee has reviewed the group's consolidated performance for the year ending December 31, 2024[83] - The preliminary performance announcement for the year ending December 31, 2024, has been agreed upon by the company's auditor[84] Dividends and Shareholder Actions - The company did not declare any dividends for the year ended December 31, 2024, consistent with 2023[34] - The company did not recommend any dividend distribution for the reporting period, consistent with the previous year[80] - The company issued a mandatory unconditional cash offer for all issued shares, acquiring approximately 60.66% of the total issued share capital of the target company[46][47] - The company received valid acceptances for a total of 82,936,512 shares, representing about 3.69% of the total issued share capital of the target company[49]

山高控股发布盈喜公告 绿电算力布局加速推进 山高控股(00412.HK)发布盈喜公告，预期2024年度未经审核利润将达6.9亿元人民币。公告称，利润增 长主要归因于收益大幅增长、按公允值计入损益的金融资产公允值大幅增加及资产减值拨回与融资成本 降低。 自2021年下半年开启战略转型征程，山高控股积极推动业务结构的深度调整，从以短久期债权类金融投 资为主，逐步向新兴产业投资控股领域聚焦。2022年，山高控股通过认购新股的方式，成功控股港股上 市公司山高新能源(01250.HK)，这一关键举措成为其战略转型道路上的重要里程碑。进入2023年，山高 控股继续在新兴产业赛道发力，抢占布局先机。同年12月，公司战略入股世纪互联(VNET.US)，旨在构 建"绿电+算力"的创新产业生态体系，为未来的多元化发展奠定坚实基础。 2024年2月，山高控股被纳入恒生综合指数成份股名单，标志着山高控股已满足纳入港股通的资格条 件，也体现了资本市场与投资者对该公司财务表现及长期投资价值的高度认可。 同年12月，山高控股持续强化股东赋能，顺利完成对中信产业基金所持山高新能源全部股权的收购，持 股比例由43.45%提升至56.97%。此 ...

Financial Performance - The company reported a significant increase in revenue, achieving a total of $1.2 billion, representing a 15% growth year-over-year[3]. - Revenue for the six months ended June 30, 2024, was HK$3,069,246, a slight decrease of 0.4% compared to HK$3,074,206 in the same period of 2023[128]. - Profit before tax increased to HK$200,573, up 13.6% from HK$176,507 in the previous year[128]. - Profit for the period was HK$85,033, a decrease of 5.6% compared to HK$90,048 in 2023[129]. - Total comprehensive losses for the period amounted to HK$753,694, an improvement from losses of HK$1,100,631 in the same period last year[131]. - The company reported a loss of HK$393,533,000 for the six months ended June 30, 2024, compared to a profit of HK$208,593,000 in the same period last year[136]. - The company experienced an accumulated loss of HK$4.46 billion as of June 30, 2023, reflecting a significant decline in financial performance[135]. - The company reported a net loss of HK$72,387 for the six months ended June 30, 2024, compared to a net loss of HK$92,682 in the same period of 2023, indicating an improvement of approximately 22%[152]. Revenue Streams - The photovoltaic power business generated revenue of HK$1,453,638,000, a decrease of 9.0% compared to HK$1,598,036,000 in the prior year[164]. - Wind power business revenue increased to HK$728,969,000, up 11.3% from HK$654,934,000 year-over-year[164]. - Revenue from contracts with customers for the six months ended June 30, 2024, was HK$2,615,282,000, down 7.6% from HK$2,830,473,000 in the same period of 2023[165]. - The license financial services segment reported revenue of HK$43,135 for the six months ended June 30, 2024, down from HK$102,753 in the same period of 2023, indicating a decline of approximately 58%[152]. - Non-standard investment segment revenue increased to HK$339,481 for the six months ended June 30, 2024, compared to HK$133,688 in the same period of 2023, reflecting an increase of approximately 154%[152]. Cost Management - Operational efficiency improvements are projected to reduce costs by 10%, translating to savings of approximately $120 million annually[3]. - The Group's profit before tax for the six months ended June 30, 2024, was impacted by total employee benefit expenses of HK$153,785,000, down 19.0% from HK$189,875,000 in the prior year[169]. - The cost of sales for electricity and entrusted operation services was HK$939,626,000, reflecting an increase of 4.5% from HK$899,488,000 in the same period of 2023[170]. - Finance costs rose to HK$1,120,185, an increase of 13.0% from HK$991,226 in the previous year[128]. Strategic Initiatives - The company provided an optimistic outlook for the next quarter, projecting revenue growth of 20% to $1.44 billion[3]. - Market expansion plans include entering two new international markets by the end of the fiscal year, targeting a potential revenue increase of $300 million[3]. - The company is considering strategic acquisitions to bolster its market position, with a budget of $100 million allocated for potential mergers[3]. - The Group is committed to achieving its annual business objectives while promoting the construction of a modern industrial system[12]. - The Group's strategic transformation aims to establish itself as a distinguished industrial holding group[12]. Investment and Assets - As of June 30, 2024, the Group's total assets were approximately HK$78.84 billion, with investments in emerging industries amounting to approximately HK$58.06 billion, accounting for 73.6% of total assets[15]. - The Group's total cash and cash equivalents amounted to approximately HK$11,912,029,000, an increase from HK$5,718,596,000 as of December 31, 2023[37]. - The Group's outstanding borrowings totaled approximately HK$33,121,469,000, an increase from HK$30,214,750,000 as of December 31, 2023[38]. - The Group's gearing ratio as of June 30, 2024, was approximately 57.67%, down from 62.93% as of December 31, 2023[39]. Human Resources - As of June 30, 2024, the Group had 2,160 employees, a decrease from 2,185 employees in the corresponding period[70]. - The Group actively attracts talent and has implemented a competitive internal remuneration policy to retain employees[71]. - Employees are provided with various welfare policies, including bonuses for outstanding performance and additional leave benefits[72]. - The Group's performance review process includes evaluating employee performance as a basis for remuneration adjustments[71]. Corporate Governance - The company has complied with all applicable provisions of the Corporate Governance Code during the reporting period[91]. - Directors confirmed compliance with the Model Code for Securities Transactions during the reporting period[90]. - The Audit Committee consists of three independent non-executive directors and two non-executive directors[126]. Financial Instruments and Liabilities - The Group's total liabilities decreased to HK$51,851,543,000 as of June 30, 2024, from HK$53,845,486,000 as of December 31, 2023, representing a reduction of approximately 3.7%[158]. - The company reported a fair value change on equity instruments classified as financial assets at fair value through other comprehensive income, resulting in a loss of HK$5,520,000[136]. - The Group's share of post-acquisition losses and other comprehensive losses for the six months ended June 30, 2024, was HK$(44,941,000), compared to HK$(15,279,000) for the same period in 2023[184]. Legal and Compliance Matters - Legal proceedings have been initiated against Altair Asia's guarantors due to failure to redeem all participating shares as per subscription terms[200]. - A winding-up petition against China Silver Asset Management (Hong Kong) Limited has been filed in the High Court of Hong Kong[200]. - The Group presented another creditor's winding-up petition against Altair Asia in the Cayman Court on November 4, 2020[200].

Financial Performance - For the six months ended June 30, 2024, the company reported revenue of HKD 3,069,246, a slight decrease of 0.2% compared to HKD 3,074,206 for the same period in 2023[5] - Gross profit for the same period was HKD 1,561,787, down 6.1% from HKD 1,662,430 in 2023[5] - The company recorded a net profit of HKD 85,033, a decrease of 5.6% from HKD 90,048 in the previous year[6] - The basic and diluted loss per share was HKD 6.54, compared to HKD 4.89 in the prior year, indicating a worsening performance[6] - The company reported a pre-tax profit of HKD 200,573, an increase of 13.6% from HKD 176,507 in 2023[6] - Total comprehensive loss for the period was HKD 753,694, compared to a loss of HKD 1,100,631 in the same period last year, showing an improvement[9] - The company experienced a significant other comprehensive loss of HKD 838,727, which was an improvement from HKD 1,190,679 in the previous year[9] - The company’s equity holders' share of the net loss was HKD 393,533, compared to HKD 294,432 in the previous year, reflecting increased losses attributable to shareholders[6] Assets and Liabilities - As of June 30, 2024, total assets amounted to HKD 59,218,195, an increase from HKD 51,639,482 in 2023, reflecting a growth of approximately 14.5%[12] - Non-current assets totaled HKD 45,537,804, compared to HKD 44,998,688 in the previous year, indicating a slight increase of 1.2%[12] - Current liabilities reached HKD 19,623,972, a decrease from HKD 21,098,322 in 2023, representing a reduction of about 7.0%[12] - The company's net asset value was HKD 26,990,624, up from HKD 18,892,318 in 2023, showing a significant increase of approximately 42.8%[12] - Cash and cash equivalents stood at HKD 5,718,596, compared to HKD 3,104,405 in the previous year, marking an increase of around 84.5%[12] - The total value of non-current liabilities was HKD 32,227,571, slightly down from HKD 32,747,164 in 2023, indicating a decrease of about 1.6%[12] - The total current assets were reported at HKD 26,447,611, an increase from HKD 33,108,308 in the previous year, indicating a decrease of about 20.1%[12] Segment Performance - The group has four reportable operating segments as of June 30, 2024, which are monitored separately for performance evaluation and resource allocation[18] - The operating segments include: (i) Industrial Investment, (ii) Standardized Investment, (iii) Non-standardized Investment, and (iv) Licensed Financial Services[20] - The segment performance showed a decline in external customer revenue for standardized investments, dropping from HKD 68,351,000 in 2023 to HKD 80,616,000 in 2024, representing a 17.5% increase[22] - The industrial investment segment recorded a profit of approximately HKD 353.2 million, down from HKD 485.7 million in the same period last year[68] - The standardized investment business incurred a loss of approximately HKD 29.9 million, an improvement compared to a loss of HKD 197.6 million in the same period last year[69] - The non-standard investment business recorded a profit of approximately HKD 68,654,000, compared to HKD 57,221,000 in the same period last year, reflecting a year-on-year increase of about 20.5%[70] - The licensed financial services segment reported a loss of approximately HKD 93,555,000, down from a profit of HKD 107,547,000 in the same period last year[72] Financing and Costs - The company’s financing costs increased to HKD 1,120,185, up from HKD 991,226 in 2023, reflecting higher borrowing costs[6] - Total financing costs for the six months ended June 30, 2024, rose to HKD 1,120,185, an increase of 13.0% compared to HKD 991,226 in 2023[32] - The group recognized a total income tax expense of HKD 115,540 for the six months ended June 30, 2024, compared to HKD 86,459 in 2023, reflecting an increase of 33.6%[35] - The group’s employee benefit expenses totaled HKD 153,785, down 19.0% from HKD 189,875 in 2023[33] Investments and Acquisitions - The group signed a cooperation agreement for a centralized wind power project in Guangxi, marking its first centralized renewable energy project in the region[65] - The group established the "Beihang Shandong High-speed Integrated Energy Research Center" to promote innovation in the integrated energy sector[65] - The group has made strategic investments in Shandong Gaosu Group and Century Internet, forming an industrial holding platform centered on "new energy + new infrastructure"[61] - The group issued corporate bonds totaling RMB 465,000,000 with an interest rate between 4.20% and 4.90%, due on November 30, 2025, and also issued perpetual securities totaling USD 900,000,000 at a 6.50% interest rate[93] Economic and Market Context - In the first half of 2024, China's GDP grew by 5.0% year-on-year, indicating stable economic performance despite external challenges[59] - The outlook for the second half of the year suggests a favorable monetary environment for stable economic growth, supported by continued macroeconomic policy efforts[74] - The group faces foreign exchange risk primarily related to the Renminbi, with management noting that the impact of this risk is not significant, and no hedging measures are currently in place[84] Corporate Governance and Compliance - The group has adhered to all applicable corporate governance codes during the reporting period[101] - The audit committee has reviewed the unaudited consolidated financial statements for the six months ended June 30, 2024, and confirmed compliance with applicable accounting standards[102] - The company has adopted the standard code for securities trading by directors as per the listing rules, confirming compliance throughout the reporting period[103] Staff and Management Changes - The group employed 2,160 staff as of June 30, 2024, a slight decrease from 2,185 in the previous year[94] - As of August 2, 2024, Mr. Wang Xiaodong has stepped down as executive director and chairman of the board, with Mr. Li Tianzhang appointed as the new executive director and chairman[102]

山高控股集團有限公司 SHANDONG HI-SPEED HOLDINGS GROUP LIMITED (Incorporated in Bermuda with limited liability) (於百慕逵註冊成立之有限公司) 股份代號 Stock Code : 00412 2023 ANNUAL REPORT 年 報 | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-----------------|-------|---------------|-------|-------|-------|-------|------------------------------|-------|-------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | ...

Financial Performance - The total revenue for the year ended December 31, 2023, was HKD 5,529,050,000, representing a 31.9% increase from HKD 4,193,421,000 in the previous year[4] - Gross profit for the same period was HKD 2,472,735,000, up 9.3% from HKD 2,261,532,000 in 2022[4] - The net profit for the year was HKD 547,697,000, compared to HKD 170,294,000 in the previous year, indicating a significant increase of 221.5%[5] - Basic and diluted earnings per share improved to HKD 0.25 from a loss of HKD 7.61 in the previous year[5] - The company reported a net loss of HKD 804,808,000 in total comprehensive loss for the year, compared to a loss of HKD 1,239,071,000 in 2022[7] Revenue Segments - For the fiscal year ending December 31, 2023, total segment revenue reached HKD 5,529,050,000, a 31.9% increase from HKD 4,193,421,000 in 2022[21] - The industrial investment segment generated revenue of HKD 4,975,462,000, up 36.6% from HKD 3,644,436,000 in the previous year[21] - The standardized investment segment reported a loss of HKD 762,024,000, an improvement from a loss of HKD 941,582,000 in 2022[21] - The non-standard investment segment's loss increased to HKD 376,134,000 from HKD 133,568,000 in the prior year[21] - The license financial services segment also reported a loss of HKD 82,195,000, compared to a loss of HKD 571,344,000 in 2022[21] Assets and Liabilities - Non-current assets increased to HKD 45,537,804 thousand in 2023 from HKD 41,202,190 thousand in 2022, representing an increase of approximately 8.99%[9] - Current assets decreased to HKD 27,200,000 thousand in 2023 from HKD 27,755,419 thousand in 2022, a decline of about 2.00%[10] - Total liabilities decreased to HKD 53,845,486 thousand in 2023 from HKD 55,382,832 thousand in 2022, reflecting a reduction of approximately 2.77%[10] - Net asset value increased to HKD 18,892,318 thousand in 2023 from HKD 15,574,778 thousand in 2022, marking an increase of around 21.00%[10] - Cash and cash equivalents rose to HKD 5,718,596 thousand in 2023 from HKD 4,392,562 thousand in 2022, an increase of about 30.11%[9] Financial Costs and Income - The financial costs increased to HKD 2,068,058,000 from HKD 1,630,572,000, reflecting a rise of 27%[4] - Other income rose to HKD 190,588,000, up from HKD 125,962,000, marking a 51.3% increase[4] - The company recognized a net loss of HKD 543,062,000 from financial assets measured at fair value, an improvement from a loss of HKD 1,188,877,000 in the previous year[4] - The company recorded a net impairment loss of financial assets amounting to HKD 31,236 thousand in 2023, a decrease from HKD 168,173 thousand in 2022[29] Strategic Plans and Market Focus - The company plans to focus on market expansion and new product development in the upcoming year[4] - The company aims to enhance operational efficiency and reduce financing costs moving forward[4] - The group plans to increase its investment in emerging industries, focusing on new energy and new infrastructure[59] - The group is focusing on new energy, new infrastructure, and new technology sectors for future investment opportunities[70] Customer and Market Concentration - Over 90% of the group's revenue and assets are generated from and located in China, indicating a strong market concentration[24][25] - The group has no customers contributing more than 10% to total revenue, reflecting a diversified customer base[25] Employee and Governance - The group employed 2,226 staff as of December 31, 2023, an increase from 2,077 staff in the same period last year, reflecting a commitment to talent acquisition[95] - The company has adopted a competitive internal compensation policy to attract and retain talent, considering market levels and individual expertise[95] - The group provides a range of employee benefits, including social insurance and additional leave benefits, to enhance employee engagement and motivation[97] - The company has maintained compliance with corporate governance codes throughout the reporting period, with a clear separation of roles between the chairman and the CEO[104] Acquisitions and Investments - The group completed significant acquisitions, including the full equity interests in Qiu Ning Electric New Energy Co., Ltd. for RMB 143,567,600, and other companies for a total of RMB 55,928,800 and RMB 43,226,300 respectively[87] - The group signed a cooperation agreement to acquire all equity of Nanyang Qingdian for a total consideration of RMB 800,000,000[54] - The group established a joint venture with Shandong International Cooperation with a total investment of RMB 45,000,000[54] Compliance and Reporting - The audit committee reviewed the consolidated financial results for the year ended December 31, 2023, ensuring compliance with financial reporting procedures[105] - The annual report for the year ended December 31, 2023, will be published on the stock exchange and the company's website[109]

Economic Overview - In the first half of 2023, global economic growth slowed down, but a recession did not occur as expected, leading to considerable gains in mature equity markets[12]. - China's economic operation in the first half of 2023 showed a good start in Q1, but growth was weaker than expected in Q2, with a marginal improvement noted in June[13]. - The global economic recovery remains uncertain, with expectations of weakened growth in the second half of 2023 due to high core inflation and tightening monetary policies[41]. - The Group anticipates more policies to expand domestic demand and enhance high-quality economic development in the second half of 2023[50]. Group Strategy and Focus - The Group aims to build an outstanding industrial investment holding group, focusing on specialization, marketization, and institutionalization[16]. - The Group is focusing on new energy, new infrastructure, and other strategic emerging industries for investment opportunities, conducting in-depth research on sectors like semiconductors and energy storage technology[22]. - The Group is actively seeking strategic investment opportunities aligned with China's modernization industrial system and emerging industries[21]. - The Group plans to optimize its asset allocation structure, emphasizing industrial investment while maintaining sufficient short-term liquidity[45]. - The Group aims to capture quality investment opportunities in the new energy and new infrastructure sectors, leveraging its existing assets and strategic advantages[46]. Financial Performance - Revenue for the six months ended June 30, 2023, was HK$3,074,206, an increase of 153.5% compared to HK$1,216,778 in 2022[167]. - Gross profit for the same period was HK$1,662,430, up 144.4% from HK$680,917 in 2022[167]. - Profit before tax decreased to HK$176,507, down 23.7% from HK$231,451 in 2022[169]. - Profit for the period was HK$90,048, a significant decline of 70.1% compared to HK$300,921 in 2022[171]. - Total comprehensive loss for the period was HK$1,100,631, compared to a loss of HK$15,514 in 2022[172]. Risk Management - The Group has enhanced its comprehensive risk management system, focusing on macroeconomic and systemic risks while controlling investment risks from market fluctuations[17]. - The Group has implemented a specific risk mitigation plan for existing risks, including debt restructuring and the introduction of relief funds[17]. - The Group's risk management system focuses on macroeconomic and systemic risks, ensuring stable liquidity and investment risk control[20]. - The Group aims to mitigate existing risks through effective post-investment management and asset revitalization strategies[54][57]. Investment Performance - The industrial investment business segment recorded a profit of approximately HK$485,733,000 during the reporting period[30]. - The standard investment business incurred a loss of approximately HK$293,736,000 on a fair value basis, compared to a loss of approximately HK$401,942,000 in the corresponding period[32]. - The non-standard investment business recorded a profit of HK$57,221,000 for the Reporting Period, compared to a loss of approximately HK$788,189,000 for the Corresponding Period[37]. - The licensed financial services business achieved a profit of approximately HK$107,547,000, recovering from a loss of approximately HK$633,792,000 in the previous year[40]. Corporate Governance and Management - The CEO position was vacant until June 28, 2023, when Mr. Zhu Jianbiao was appointed[140]. - The Company has complied with the Model Code for Securities Transactions by Directors during the reporting period[139]. - The Company will continue to review and update its corporate governance practices[140]. - The Group has implemented a competitive remuneration policy to attract and retain talent, with performance reviews influencing annual remuneration adjustments[120]. Financial Position - As of June 30, 2023, the total cash and cash equivalents amounted to approximately HK$3,495,082,000, a decrease from HK$4,392,562,000 as of December 31, 2022[56][59]. - Total assets were approximately HK$66,820,836,000, down from HK$68,957,609,000 as of December 31, 2022[56][59]. - The Group's total deficit attributable to owners was approximately HK$942,280,000 as of June 30, 2023, compared to HK$36,053,000 as of December 31, 2022[61][63]. - The gearing ratio as of June 30, 2023, was approximately 66.82%, up from 63.50% as of December 31, 2022[66][68]. Employee and Human Resources - As of June 30, 2023, the Company had 2,185 employees, a decrease from 2,437 employees in the corresponding period[119]. - Employees are provided with a range of welfare policies, including bonuses for outstanding performance and various types of leave benefits[121]. - The Group continues to invest in human resources management to ensure a supportive and healthy workplace for employees[124]. Acquisitions and Investments - During the reporting period, the Group completed acquisitions of three new energy companies for a total consideration of RMB242,722,700, with the acquisitions finalized on January 1, 2023[76][79]. - The Group's acquisitions included Shangqiu Ningdian New Energy Co., Ltd., Lankao Gold Wind Power New Energy Co., Ltd., and Shenqiu Yingdian New Energy Co., Ltd.[76][79]. - The Group's acquisitions have resulted in the target companies becoming indirect wholly owned subsidiaries of SDHS New Energy[79][83]. Shareholder Information - Shandong Hi-Speed Group Co., Ltd. holds 2,614,912,087 shares, representing approximately 43.44% of the total shareholding[133]. - The total issued share capital of the Company as of June 30, 2023, is 6,019,431,109 shares[136]. - The Company did not purchase, sell, or redeem any of its listed securities during the reporting period[138].

[Company Information and Financial Performance Overview](index=1&type=section&id=I.%20Company%20Information%20and%20Financial%20Performance%20Overview) [Company Profile](index=6&type=section&id=1.1%20Company%20Profile) SDHG Group Limited is an exempted company incorporated in Bermuda, with its shares listed on the Hong Kong Stock Exchange and its principal place of business in Central, Hong Kong - The company is an exempted company incorporated in Bermuda, with its shares listed on the Hong Kong Stock Exchange[9](index=9&type=chunk) [Condensed Consolidated Statement of Profit or Loss](index=1&type=section&id=1.2%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) Revenue grew significantly, but profit for the period and attributable to owners turned to loss, mainly due to fair value losses on financial assets and higher finance costs Key Data from Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Metric | 2023 (HKD thousands) | 2022 (HKD thousands) | Change (%) | | :------------- | :-------------- | :-------------- | :--------- | | Revenue | 3,074,206 | 1,216,778 | 152.66 | | Gross Profit | 1,662,430 | 680,917 | 144.16 | | Other Income | 66,326 | 28,660 | 131.42 | | Other Gains and Losses, Net | (26,806) | 1,152,140 | -102.33 | | Impairment Losses on Financial Assets, Net | 271,048 | (355,828) | -176.17 | | Fair Value Losses on Financial Assets at FVTPL, Net | (203,120) | (686,844) | 70.47 | | Finance Costs | (991,226) | (386,274) | -156.62 | | Profit Before Tax | 176,507 | 231,451 | -23.74 | | Profit for the Period | 90,048 | 300,921 | -70.08 | | Profit/(Loss) for the Period Attributable to Owners of the Company | (294,432) | 75,863 | -488.18 | | Basic (Loss)/Earnings Per Share (HK cents) | (4.89) | 1.26 | -488.10 | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=1.3%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) The Group's total comprehensive loss for the period significantly increased, primarily due to fair value changes in financial assets at FVTOCI and exchange differences from overseas operations Key Data from Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Metric | 2023 (HKD thousands) | 2022 (HKD thousands) | Change (%) | | :----------------- | :-------------- | :-------------- | :--------- | | Profit for the Period | 90,048 | 300,921 | -70.08 | | Total Other Comprehensive Loss | (1,190,679) | (316,435) | -276.29 | | Total Comprehensive Loss for the Period | (1,100,631) | (15,514) | -7000.00 | | Total Comprehensive Income/(Loss) for the Period Attributable to Owners of the Company | (910,819) | (240,471) | -278.85 | - Exchange differences from overseas operations led to a significant increase in total other comprehensive loss for the period, from **HKD (38,486) thousands** in 2022 to **HKD (974,207) thousands** in 2023[6](index=6&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=1.4%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2023, the Group's total assets and liabilities decreased, with net current assets and net assets also declining, reflecting challenges in asset structure and financial health Key Data from Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | 2023 (HKD thousands) | 2022 Dec 31 (HKD thousands) | Change (%) | | :------------- | :-------------- | :---------------------- | :--------- | | Total Non-current Assets | 38,968,932 | 41,202,190 | -5.56 | | Total Current Assets | 27,851,904 | 27,755,419 | 0.35 | | Total Current Liabilities | 19,099,957 | 18,301,999 | 4.36 | | Net Current Assets | 8,751,947 | 9,453,420 | -7.42 | | Total Non-current Liabilities | 33,400,108 | 35,080,832 | -4.79 | | Net Assets | 14,320,771 | 15,574,778 | -8.05 | | Total Equity | 14,320,771 | 15,574,778 | -8.05 | - Equity attributable to owners of the Company significantly decreased from **HKD (36,053) thousands** as of December 31, 2022, to **HKD (942,280) thousands** as of June 30, 2023, indicating substantial shareholder losses[8](index=8&type=chunk) [Notes to the Financial Statements](index=6&type=section&id=II.%20Notes%20to%20the%20Financial%20Statements) [Basis of Preparation](index=6&type=section&id=2.1%20Basis%20of%20Preparation) These interim financial statements are prepared in accordance with the HKEX Listing Rules and HKAS 34, with the first-time adoption of several new and revised HKFRSs, notably HKAS 12 amendments impacting deferred tax asset and liability component disclosures - The interim financial statements are presented in **HKD** and prepared in accordance with Appendix 16 of the Listing Rules and HKAS 34[10](index=10&type=chunk) - First-time adoption of HKFRS 17 and amendments to HKAS 1, HKAS 8, and HKAS 12, with HKAS 12 amendments affecting deferred tax asset and liability component disclosures but not the overall deferred tax balance[11](index=11&type=chunk)[12](index=12&type=chunk) [Compliance Statement](index=6&type=section&id=2.1.1%20Compliance%20Statement) These interim financial statements comply with HKEX Listing Rules Appendix 16 disclosure requirements and HKAS 34 'Interim Financial Reporting', presented in HKD as functional currency - The interim financial statements are presented in **HKD** and prepared in accordance with Appendix 16 of the Listing Rules and HKAS 34[10](index=10&type=chunk) [Application of New and Revised HKFRSs](index=6&type=section&id=2.1.2%20Application%20of%20New%20and%20Revised%20HKFRSs) The Group first adopted several new and revised HKFRSs, with HKAS 12 (Amendments) 'Deferred Tax related to Assets and Liabilities arising from a Single Transaction' primarily affecting deferred tax asset and liability component disclosures, but not materially impacting the overall deferred tax balance - The Group first adopted HKFRS 17, and amendments to HKAS 1, HKAS 8, and HKAS 12[11](index=11&type=chunk)[12](index=12&type=chunk) - HKAS 12 (Amendments) narrowed the scope of deferred tax exemption, leading to separate determination of deferred tax related to right-of-use assets and lease liabilities, primarily affecting disclosure components but not the overall deferred tax balance in the condensed consolidated statement of financial position[13](index=13&type=chunk) [Judgements and Estimates](index=7&type=section&id=2.1.3%20Judgements%20and%20Estimates) Significant management judgements and estimates made in preparing these interim financial statements are consistent with those applied in the annual financial statements, though actual results may differ from estimates - Significant management judgements and estimation uncertainties in preparing the interim financial statements are consistent with those applied in the annual financial statements[14](index=14&type=chunk) [Operating Segment Information](index=7&type=section&id=2.2%20Operating%20Segment%20Information) The Group operates four reportable segments: Industrial Investment, Standardized Investment, Non-standardized Investment, and Licensed Financial Services. In H1 2023, Industrial Investment and Licensed Financial Services saw significant performance growth, Non-standardized Investment turned profitable, while Standardized Investment recorded a loss. Over **90%** of the Group's revenue and assets are located in China - The Group has four reportable operating segments: Industrial Investment, Standardized Investment, Non-standardized Investment, and Licensed Financial Services[15](index=15&type=chunk) - Segment performance is assessed by adjusted profit before tax, excluding unallocated income, finance costs, expenses, and share of results of joint ventures and associates[16](index=16&type=chunk) [Segment Overview](index=7&type=section&id=2.2.1%20Segment%20Overview) The Group's business is divided into four reportable operating segments—Industrial Investment, Standardized Investment, Non-standardized Investment, and Licensed Financial Services—based on reports reviewed by the chief operating decision maker, with segment performance assessed by adjusted profit before tax - The Group's chief operating decision maker (Executive Directors) classifies business into four reportable segments: Industrial Investment, Standardized Investment, Non-standardized Investment, and Licensed Financial Services, based on strategic decision reports[15](index=15&type=chunk) - Segment performance is assessed by reportable segment results (adjusted profit before tax), excluding unallocated income, finance costs, expenses, and share of results of joint ventures and associates[16](index=16&type=chunk) [Segment Results and Balance Sheet](index=8&type=section&id=2.2.2%20Segment%20Results%20and%20Balance%20Sheet) For the six months ended June 30, 2023, Industrial Investment segment revenue and performance grew significantly, Non-standardized Investment turned profitable, Licensed Financial Services improved substantially, while Standardized Investment recorded a loss. Total assets and liabilities both decreased Segment Revenue and Results (For the six months ended June 30) | Segment | 2023 Revenue (HKD thousands) | 2022 Revenue (HKD thousands) | 2023 Results (HKD thousands) | 2022 Results (HKD thousands) | | :------------- | :------------------ | :------------------ | :------------------ | :------------------ | | Industrial Investment | 2,769,414 | 938,622 | 485,733 | 1,946,652 | | Standardized Investment | 68,351 | 164,585 | (293,676) | (234,969) | | Non-standardized Investment | 133,688 | 41,064 | 57,221 | (788,189) | | Licensed Financial Services | 102,753 | 72,507 | 107,547 | (633,792) | | Total | 3,074,206 | 1,216,778 | 356,825 | 289,702 | Segment Assets and Liabilities (As of June 30) | Segment | 2023 Assets (HKD thousands) | 2022 Dec 31 Assets (HKD thousands) | 2023 Liabilities (HKD thousands) | 2022 Dec 31 Liabilities (HKD thousands) | | :------------- | :------------------ | :-------------------------- | :------------------ | :-------------------------- | | Industrial Investment | 50,364,266 | 52,197,838 | 39,224,062 | 40,691,075 | | Standardized Investment | 2,725,811 | 3,237,270 | 3,928,730 | 2,847,036 | | Non-standardized Investment | 6,524,852 | 6,902,973 | 6,186,576 | 7,130,612 | | Licensed Financial Services | 4,057,283 | 3,445,289 | 3,015,505 | 2,586,741 | | Total Assets | 66,820,836 | 68,957,609 | | | | Total Liabilities | | | 52,500,065 | 53,382,831 | [Geographical Information](index=10&type=section&id=2.2.3%20Geographical%20Information) For the six months ended June 30, 2023, over **90%** of the Group's revenue was generated in China, and over **90%** of its assets were located in China, thus no detailed geographical segment information is presented - For the six months ended June 30, 2023, over **90%** of the Group's revenue was generated in China[20](index=20&type=chunk) - As of June 30, 2023, and December 31, 2022, over **90%** of the Group's assets were located in China[21](index=21&type=chunk) [Revenue](index=11&type=section&id=2.3%20Revenue) The Group's total revenue significantly increased by **152.66%** to **HKD 3,074,206 thousands**, primarily driven by substantial growth in electricity sales and tariff subsidies, clean heating services, and entrusted operation services income Revenue from Contracts with Customers Classification (For the six months ended June 30) | Revenue Category | 2023 (HKD thousands) | 2022 (HKD thousands) | Change (%) | | :--------------- | :-------------- | :-------------- | :--------- | | Electricity Sales and Tariff Subsidies | 2,252,970 | 807,270 | 179.08 | | Construction Services | 53,001 | 79,404 | -33.26 | | Technical Consulting Services | 7,646 | 5,664 | 34.99 | | Entrusted Operation Services | 73,397 | 25,918 | 183.19 | | Provision of Clean Heating Services | 382,400 | 20,366 | 1772.60 | | Consultancy Services Income | 47,828 | 11,108 | 330.58 | | Brokerage Business Income | 11,119 | 10,801 | 2.94 | | Asset Management and Performance Income | 2,112 | 7,394 | -71.43 | | Total Revenue from Contracts with Customers | 2,830,473 | 970,359 | 191.70 | Revenue Reconciliation (For the six months ended June 30) | Revenue Source | 2023 (HKD thousands) | 2022 (HKD thousands) | Change (%) | | :--------------- | :-------------- | :-------------- | :--------- | | Revenue from Contracts with Customers | 2,830,473 | 970,359 | 191.70 | | Finance Lease Income | 1,944 | 8,452 | -77.00 | | Interest Income from Money Lending Business | 46,856 | 19,679 | 138.01 | | Interest Income from Debt Investments | 36,520 | 50,451 | -27.52 | | Dividend Income from Financial Assets at FVTPL | 5,065 | 19,858 | -74.40 | | Interest Income from Financial Assets at FVTPL | 56,676 | 75,146 | -24.58 | | Interest Income from Financial Assets at FVTOCI | 96,672 | 72,833 | 32.73 | | Total Revenue | 3,074,206 | 1,216,778 | 152.66 | [Revenue from Contracts with Customers Classification](index=11&type=section&id=2.3.1%20Revenue%20from%20Contracts%20with%20Customers%20Classification) The Group's revenue from contracts with customers significantly increased by **191.70%** to **HKD 2,830,473 thousands**, primarily benefiting from strong growth in electricity sales and tariff subsidies, clean heating services, and entrusted operation services Key Growth Drivers of Revenue from Contracts with Customers (For the six months ended June 30) | Revenue Category | 2023 (HKD thousands) | 2022 (HKD thousands) | Change (%) | | :--------------- | :-------------- | :-------------- | :--------- | | Electricity Sales and Tariff Subsidies | 2,252,970 | 807,270 | 179.08 | | Provision of Clean Heating Services | 382,400 | 20,366 | 1772.60 | | Entrusted Operation Services | 73,397 | 25,918 | 183.19 | - The vast majority of revenue from contracts with customers (**HKD 2,760,300 thousands**) is recognized at a point in time, with **HKD 70,173 thousands** recognized over time[22](index=22&type=chunk) [Revenue Reconciliation](index=12&type=section&id=2.3.2%20Revenue%20Reconciliation) The Group's total revenue comprises revenue from contracts with customers and various financial business incomes, with interest income from money lending and financial assets at FVTOCI increasing, while finance lease income and dividend/interest income from financial assets at FVTPL decreased Non-Customer Contract Revenue Reconciliation (For the six months ended June 30) | Revenue Source | 2023 (HKD thousands) | 2022 (HKD thousands) | Change (%) | | :--------------- | :-------------- | :-------------- | :--------- | | Finance Lease Income | 1,944 | 8,452 | -77.00 | | Interest Income from Money Lending Business | 46,856 | 19,679 | 138.01 | | Interest Income from Debt Investments | 36,520 | 50,451 | -27.52 | | Dividend Income from Financial Assets at FVTPL | 5,065 | 19,858 | -74.40 | | Interest Income from Financial Assets at FVTPL | 56,676 | 75,146 | -24.58 | | Interest Income from Financial Assets at FVTOCI | 96,672 | 72,833 | 32.73 | [Other Gains and Losses, Net](index=12&type=section&id=2.4%20Other%20Gains%20and%20Losses,%20Net) The Group's net other gains and losses significantly shifted from a gain of **HKD 1,152,140 thousands** in the prior period to a loss of **HKD 26,806 thousands**, mainly due to a substantial decrease in bargain purchase gains from subsidiary acquisitions and increased exchange losses Other Gains and Losses, Net (For the six months ended June 30) | Item | 2023 (HKD thousands) | 2022 (HKD thousands) | Change (%) | | :--------------- | :-------------- | :-------------- | :--------- | | Bargain Purchase Gain on Acquisition of Subsidiaries | 44,556 | 1,601,839 | -97.22 | | Exchange Losses, Net | (38,794) | (28,630) | -35.57 | | Fair Value Gain on Investment Properties | 10,000 | – | N/A | | Total | (26,806) | 1,152,140 | -102.33 | - No impairment losses on goodwill and intangible assets were recorded in H1 2023, compared to **HKD (13,228) thousands** and **HKD (400,279) thousands** respectively in the prior period[24](index=24&type=chunk) [Impairment Losses on Financial Assets, Net](index=13&type=section&id=2.5%20Impairment%20Losses%20on%20Financial%20Assets,%20Net) The Group's net impairment losses on financial assets shifted from a recognized loss of **HKD 355,828 thousands** in the prior period to a reversal gain of **HKD 271,048 thousands**, primarily due to reversals of impairment losses on loans receivable, trade and other receivables Impairment Losses on Financial Assets, Net (For the six months ended June 30) | Item | 2023 (HKD thousands) | 2022 (HKD thousands) | Change (%) | | :--------------- | :-------------- | :-------------- | :--------- | | Finance Lease Receivables | 18,159 | (105,269) | -117.25 | | Loans Receivable | 112,748 | (338,054) | -133.35 | | Trade and Other Receivables | 140,141 | 251,003 | -44.10 | | Contract Assets | – | 257 | -100.00 | | Debt Instruments at FVTOCI | – | (163,765) | -100.00 | | Total | 271,048 | (355,828) | -176.17 | [Finance Costs](index=13&type=section&id=2.6%20Finance%20Costs) The Group's finance costs significantly increased by **156.62%** to **HKD 991,226 thousands**, primarily due to substantial growth in interest on bank borrowings and lease liabilities Composition of Finance Costs (For the six months ended June 30) | Item | 2023 (HKD thousands) | 2022 (HKD thousands) | Change (%) | | :------------- | :-------------- | :-------------- | :--------- | | Interest on Bank Borrowings | 881,109 | 238,320 | 269.72 | | Interest on Other Borrowings | 3,169 | 15,334 | -79.34 | | Interest on Bonds | 114,397 | 155,337 | -26.36 | | Interest on Lease Liabilities | 135,207 | 82,801 | 63.29 | | Less: Interest Capitalized | (11,263) | – | N/A | | Total | 991,226 | 386,274 | 156.62 | [Profit Before Tax](index=14&type=section&id=2.7%20Profit%20Before%20Tax) The Group's profit before tax decreased by **23.74%** to **HKD 176,507 thousands**, mainly due to increased fair value losses on financial assets at FVTPL, higher employee benefit expenses, and a significant increase in depreciation of property, plant and equipment Key Deductions from Profit Before Tax (For the six months ended June 30) | Item | 2023 (HKD thousands) | 2022 (HKD thousands) | Change (%) | | :--------------- | :-------------- | :-------------- | :--------- | | Total Employee Benefit Expenses | 189,875 | 127,578 | 48.83 | | Fair Value Losses on Financial Assets at FVTPL, Net | 203,120 | 686,844 | -70.47 | | Cost of Electricity Sales and Entrusted Operation Services | 899,488 | 254,532 | 253.39 | | Cost of Clean Heating Services | 323,597 | 34,724 | 831.93 | | Depreciation of Property, Plant and Equipment | 557,860 | 97,350 | 472.99 | | Depreciation of Right-of-Use Assets | 130,884 | 45,931 | 184.96 | - Realized losses on financial assets at FVTPL amounted to **HKD 59,248 thousands**, while unrealized losses were **HKD 143,872 thousands**[27](index=27&type=chunk) [Income Tax Expense/(Credit)](index=15&type=section&id=2.8%20Income%20Tax%20Expense/(Credit)) The Group's income tax shifted from a credit of **HKD 69,470 thousands** in the prior period to an expense of **HKD 86,459 thousands**, mainly due to deferred tax turning from credit to expense and increased PRC corporate income tax Composition of Income Tax Expense/(Credit) (For the six months ended June 30) | Item | 2023 (HKD thousands) | 2022 (HKD thousands) | Change (%) | | :------------- | :-------------- | :-------------- | :--------- | | PRC Corporate Income Tax | 110,650 | 73,192 | 51.18 | | Singapore Corporate Income Tax | 2,270 | 2,309 | -1.69 | | Deferred Tax | (26,461) | (144,971) | 81.74 | | Total | 86,459 | (69,470) | -224.40 | - No provision for Hong Kong profits tax was made for the period as no assessable profits arose in Hong Kong[29](index=29&type=chunk) - Certain PRC subsidiaries enjoy income tax exemptions and reductions due to operating photovoltaic and wind power stations and meeting preferential corporate income tax rate conditions in specific regions[30](index=30&type=chunk) [Loss/Earnings Per Share Attributable to Owners of the Company](index=16&type=section&id=2.9%20Loss/Earnings%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company) Basic and diluted earnings per share attributable to owners of the Company shifted from **1.26 HK cents** in the prior period to a loss of **4.89 HK cents** per share, primarily due to a significant increase in loss attributable to owners of the Company Loss/Earnings Per Share (For the six months ended June 30) | Metric | 2023 (HK cents) | 2022 (HK cents) | Change (%) | | :------------- | :------------ | :------------ | :--------- | | Basic (Loss)/Earnings Per Share | (4.89) | 1.26 | -488.10 | | Diluted (Loss)/Earnings Per Share | (4.89) | 1.26 | -488.10 | [Basic (Loss)/Earnings Per Share](index=16&type=section&id=2.9.1%20Basic%20(Loss)/Earnings%20Per%20Share) For the six months ended June 30, 2023, the loss attributable to owners of the Company was **HKD 294,432 thousands**, resulting in a basic loss of **4.89 HK cents** per share, compared to earnings of **1.26 HK cents** per share in the prior period Basic (Loss)/Earnings Per Share Calculation (For the six months ended June 30) | Metric | 2023 (HKD thousands) | 2022 (HKD thousands) | | :------------- | :-------------- | :-------------- | | Loss/Profit for the Period Attributable to Owners of the Company | (294,432) | 75,863 | | Weighted Average Number of Ordinary Shares (thousands) | 6,019,431 | 6,022,346 | | Basic (Loss)/Earnings Per Share (HK cents) | (4.89) | 1.26 | [Diluted (Loss)/Earnings Per Share](index=16&type=section&id=2.9.2%20Diluted%20(Loss)/Earnings%20Per%20Share) For the six months ended June 30, 2023, diluted loss per share was the same as basic loss per share at **4.89 HK cents**, as the assumed exercise of share options had an anti-dilutive effect on loss per share - For the six months ended June 30, 2023, diluted loss per share was not assumed to be exercised and was the same as basic loss per share, as the assumed exercise of share options had an anti-dilutive effect on loss per share[35](index=35&type=chunk) [Dividends](index=17&type=section&id=2.10%20Dividends) The Board decided not to declare any interim dividend for the period - The Board did not declare any interim dividend for the period (prior period: nil)[36](index=36&type=chunk) [Property, Plant and Equipment](index=17&type=section&id=2.11%20Property,%20Plant%20and%20Equipment) For the six months ended June 30, 2023, the Group added approximately **HKD 784,147 thousands** in property, plant and equipment, a significant increase from the prior period, excluding assets from business combinations and transfers from investment properties - For the six months ended June 30, 2023, the Group added approximately **HKD 784,147 thousands** in property, plant and equipment, a significant increase from **HKD 196,165 thousands** in the prior period[36](index=36&type=chunk) - Additions exclude property, plant and equipment with a gross carrying amount of approximately **HKD 1,017,948 thousands** acquired in business combinations and approximately **HKD 540,000 thousands** transferred from investment properties[36](index=36&type=chunk) [Interests in Associates](index=17&type=section&id=2.12%20Interests%20in%20Associates) As of June 30, 2023, the Group's total interests in associates amounted to **HKD 3,465,696 thousands**, a decrease from December 31, 2022, primarily due to exchange adjustments Interests in Associates (As of June 30) | Item | 2023 (HKD thousands) | 2022 Dec 31 (HKD thousands) | Change (%) | | :--------------- | :-------------- | :---------------------- | :--------- | | Cost of Investment | 3,517,963 | 3,498,158 | 0.57 | | Exchange Adjustments | (52,951) | (13,513) | -291.86 | | Total Interests | 3,465,696 | 3,558,337 | -2.60 | | Amounts Due from Associates | 335,417 | 357,553 | -6.20 | [Financial Assets at Fair Value Through Other Comprehensive Income (FVTOCI)](index=18&type=section&id=2.13%20Financial%20Assets%20at%20Fair%20Value%20Through%20Other%20Comprehensive%20Income%20(FVTOCI)) As of June 30, 2023, the Group's total financial assets at FVTOCI amounted to **HKD 4,324,916 thousands**, a decrease from year-end 2022, mainly due to fair value changes in unlisted equity investments and listed bonds Financial Assets at FVTOCI (As of June 30) | Asset Class | 2023 (HKD thousands) | 2022 Dec 31 (HKD thousands) | Change (%) | | :--------------- | :-------------- | :---------------------- | :--------- | | Total Non-current Assets | 851,993 | 1,270,726 | -32.95 | | Total Current Assets | 3,472,923 | 3,248,546 | 6.91 | | Total | 4,324,916 | 4,519,272 | -4.30 | - The Group designated certain listed equity instruments to be measured at FVTOCI, as they are intended for long-term holding[39](index=39&type=chunk) Fair Value Changes of Financial Assets at FVTOCI (For the period ended June 30) | Nature of Investment | 2023 Fair Value Change (HKD thousands) | 2022 Fair Value Change (HKD thousands) | | :--------------- | :------------------------ | :------------------------ | | Unlisted Equity Investments | (172,400) | (31,000) | | Listed Equity Investments | 6,150 | (50,024) | | Listed Bonds | (7,145) | (102,283) | | Notes | – | (5,572) | | Unlisted Bonds | (8,747) | (38,300) | [Financial Assets at Fair Value Through Profit or Loss (FVTPL)](index=20&type=section&id=2.14%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss%20(FVTPL)) As of June 30, 2023, the Group's total financial assets at FVTPL amounted to **HKD 2,916,220 thousands**, a decrease from year-end 2022, mainly due to reductions in unlisted equity investments and offshore Hong Kong notes, with both unrealized and realized losses recorded during the period Financial Assets at FVTPL (As of June 30) | Asset Class | 2023 (HKD thousands) | 2022 Dec 31 (HKD thousands) | Change (%) | | :--------------- | :-------------- | :---------------------- | :--------- | | Total Current Assets | 2,916,220 | 3,370,194 | -13.50 | | Unlisted Equity Investments | 318,667 | 535,054 | -40.44 | | Offshore Hong Kong Notes | – | 531,117 | -100.00 | | Total | 2,916,220 | 3,374,382 | -13.58 | Unrealized (Losses)/Gains on Financial Assets at FVTPL, Net (For the six months ended June 30) | Nature of Investment | 2023 (HKD thousands) | 2022 (HKD thousands) | | :--------------- | :-------------- | :-------------- | | Listed Equity Investments – Hong Kong | (4,188) | (36,051) | | Unlisted Equity Investments – PRC | 12,067 | (187,188) | | Listed Equity Investments Held for Trading | (115,557) | 26,828 | | Investment Funds Held for Trading | (3,827) | (52,207) | | Notes | 17,374 | (96,840) | | Other Investment Funds | (47,285) | 1,745 | | Total | (143,872) | (352,625) | Realized (Losses)/Gains on Financial Assets at FVTPL (For the six months ended June 30) | Nature of Investment | 2023 (HKD thousands) | 2022 (HKD thousands) | | :--------------- | :-------------- | :-------------- | | Listed Equity Investments Held for Trading | (74,666) | (292,310) | | Other Investment Funds | 1,392 | (26,819) | | Notes | 14,026 | (23,945) | | Investment Funds Held for Trading | – | 11,695 | | Total | (59,248) | (334,219) | [Finance Lease Receivables](index=23&type=section&id=2.15%20Finance%20Lease%20Receivables) As of June 30, 2023, the Group's finance lease receivables decreased to **HKD 459,354 thousands**, with an increase in total overdue finance lease receivables, notably those overdue for over one year Carrying Amount of Finance Lease Receivables (As of June 30) | Item | 2023 (HKD thousands) | 2022 Dec 31 (HKD thousands) | Change (%) | | :------------- | :-------------- | :---------------------- | :--------- | | Within One Year | 459,354 | 481,834 | -4.67 | | After One Year but Within Two Years | – | 29,912 | -100.00 | | Total | 459,354 | 511,746 | -10.10 | Aging Analysis of Overdue Finance Lease Receivables (As of June 30) | Days Overdue | 2023 (HKD thousands) | 2022 Dec 31 (HKD thousands) | Change (%) | | :------------- | :-------------- | :---------------------- | :--------- | | Within 30 Days | – | 335,167 | -100.00 | | 91 to 180 Days | 101,768 | 66,287 | 53.54 | | 181 Days to 1 Year | 117,525 | 69,724 | 68.56 | | 1 to 2 Years | 181,923 | 725,640 | -74.93 | | 2 to 5 Years | 1,354,938 | 557,798 | 142.93 | | Total | 1,756,154 | 1,754,616 | 0.09 | [Loans Receivable](index=24&type=section&id=2.16%20Loans%20Receivable) As of June 30, 2023, the Group's total loans receivable (net of impairment) increased to **HKD 4,098,794 thousands**, with a higher proportion of short-term loans and an increase in total overdue loans receivable Carrying Amount of Loans Receivable (As of June 30) | Item | 2023 (HKD thousands) | 2022 Dec 31 (HKD thousands) | Change (%) | | :------------- | :-------------- | :---------------------- | :--------- | | Gross Loans Receivable | 4,429,451 | 3,869,964 | 14.47 | | Less: Provision for Impairment Losses | (330,657) | (451,210) | 26.71 | | Net Amount | 4,098,794 | 3,418,754 | 19.90 | | Non-current Assets | 799,502 | 1,009,547 | -20.81 | | Current Assets | 3,299,292 | 2,409,207 | 37.09 | Aging Analysis of Overdue Loans Receivable (As of June 30) | Days Overdue | 2023 (HKD thousands) | 2022 Dec 31 (HKD thousands) | Change (%) | | :------------- | :-------------- | :---------------------- | :--------- | | Within 30 Days | 381,467 | – | N/A | | 31 to 90 Days | – | 787,250 | -100.00 | | 181 Days to 1 Year | 872,284 | – | N/A | | 1 to 2 Years | 782,498 | 865,712 | -9.50 | | 2 to 5 Years | 424,174 | 434,488 | -2.37 | | Over 5 Years | 2,000 | 2,000 | 0.00 | | Total | 2,462,423 | 2,089,450 | 17.85 | [Contract Assets](index=25&type=section&id=2.17%20Contract%20Assets) As of June 30, 2023, the Group's total contract assets decreased significantly to **HKD 710,841 thousands** from year-end 2022, primarily due to reductions in construction contracts and retention monies Composition of Contract Assets (As of June 30) | Item | 2023 (HKD thousands) | 2022 Dec 31 (HKD thousands) | Change (%) | | :------------- | :-------------- | :---------------------- | :--------- | | Tariff Subsidies Receivable | 656,596 | 587,320 | 11.79 | | Construction Services | 48,425 | 448,286 | -89.19 | | Retention Monies | 5,820 | 51,140 | -88.62 | | Total | 710,841 | 1,086,746 | -34.59 | - Tariff subsidies receivable included in contract assets refer to central government renewable energy subsidies for photovoltaic and wind power station projects, which will be invoiced and settled upon inclusion in the national renewable energy generation subsidy list[52](index=52&type=chunk) - Revenue from construction and related services is initially recognized as contract assets, and amounts are reclassified to trade receivables upon completion of agreed milestones with customers and acceptance[53](index=53&type=chunk) [Trade and Other Receivables](index=26&type=section&id=2.18%20Trade%20and%20Other%20Receivables) As of June 30, 2023, the Group's total trade and other receivables slightly decreased to **HKD 14,560,163 thousands** from year-end 2022, with significant growth in tariff subsidies receivable offset by reductions in prepayments, deposits, and other receivables Composition of Trade and Other Receivables (As of June 30) | Item | 2023 (HKD thousands) | 2022 Dec 31 (HKD thousands) | Change (%) | | :--------------- | :-------------- | :---------------------- | :--------- | | Trade Receivables | 2,235,145 | 2,399,977 | -6.90 | | Tariff Subsidies Receivable | 6,759,787 | 5,938,240 | 13.84 | | Prepayments | 578,367 | 754,102 | -23.29 | | Deposits and Other Receivables | 3,764,920 | 4,929,951 | -23.63 | | Amounts Due from Joint Ventures | 554,489 | 293,643 | 88.83 | | Total | 14,560,163 | 14,822,208 | -1.77 | Aging Analysis of Trade Receivables and Bills Receivable (Excluding Tariff Subsidies) (As of June 30) | Aging | 2023 (HKD thousands) | 2022 Dec 31 (HKD thousands) | | :------------- | :-------------- | :---------------------- | | Within 90 Days | 631,106 | 903,681 | | 91 to 180 Days | 176,700 | 322,461 | | 181 Days to 1 Year | 748,357 | 260,807 | | 1 to 2 Years | 310,740 | 390,180 | | Over 2 Years | 396,022 | 558,960 | | Total | 2,262,925 | 2,436,089 | Aging Analysis of Tariff Subsidies Receivable (As of June 30) | Aging | 2023 (HKD thousands) | 2022 Dec 31 (HKD thousands) | | :------------- | :-------------- | :---------------------- | | Within 90 Days | 528,380 | 915,705 | | 91 to 180 Days | 549,239 | 544,856 | | 181 Days to 1 Year | 1,369,909 | 992,951 | | 1 to 2 Years | 2,186,819 | 1,275,165 | | Over 2 Years | 2,125,440 | 2,209,563 | | Total | 6,759,787 | 5,938,240 | [Trade and Bills Payables](index=28&type=section&id=2.19%20Trade%20and%20Bills%20Payables) As of June 30, 2023, the Group's total trade and bills payables decreased to **HKD 1,697,088 thousands** from year-end 2022, with a reduction in amounts overdue within 90 days - Trade payables are non-interest bearing and generally settled within **30** to **180** days[59](index=59&type=chunk) - Bills payable of approximately **HKD 21,067 thousands** are secured by pledged bank deposits[60](index=60&type=chunk) Aging Analysis of Trade and Bills Payables (As of June 30) | Aging | 2023 (HKD thousands) | 2022 Dec 31 (HKD thousands) | Change (%) | | :------------- | :-------------- | :---------------------- | :--------- | | Within 90 Days | 81,609 | 152,310 | -46.30 | | 91 to 180 Days | 160,646 | 145,828 | 10.16 | | 181 Days to 1 Year | 137,585 | 245,366 | -43.93 | | 1 to 2 Years | 280,661 | 285,510 | -1.70 | | Over 2 Years | 1,036,587 | 1,112,799 | -6.85 | | Total | 1,697,088 | 1,941,813 | -12.60 | [Borrowings](index=28&type=section&id=2.20%20Borrowings) As of June 30, 2023, the Group's total borrowings increased to **HKD 44,652,624 thousands**, with significant increases in bank borrowings and borrowings repayable within one year, and several borrowings guaranteed by Shandong Hi-Speed Group or secured by the Group's assets Composition of Borrowings (As of June 30) | Borrowing Type | 2023 (HKD thousands) | 2022 Dec 31 (HKD thousands) | Change (%) | | :------------- | :-------------- | :---------------------- | :--------- | | Bank Borrowings | 30,252,381 | 26,767,180 | 13.39 | | Bonds | 6,693,777 | 8,521,297 | -21.44 | | Other Borrowings | 7,706,466 | 8,498,785 | -9.21 | | Total | 44,652,624 | 43,787,262 | 1.98 | | Non-current Liabilities | 29,942,374 | 30,341,403 | -1.32 | | Current Liabilities | 14,710,250 | 13,445,859 | 9.40 | - Certain bank and other borrowings of the Group are guaranteed by Shandong Hi-Speed Group Co., Ltd., or secured by the Group's financial assets, finance lease receivables, trade receivables, contract assets, property, plant and equipment, investment properties, concession rights, and equity interests in subsidiaries and associates[63](index=63&type=chunk) [Comparative Amounts](index=29&type=section&id=2.21%20Comparative%20Amounts) Certain comparative amounts have been reclassified to conform with the current period's presentation - Certain comparative amounts have been reclassified to conform with the current period's presentation[64](index=64&type=chunk) [Management Discussion and Analysis](index=30&type=section&id=III.%20Management%20Discussion%20and%20Analysis) [Market Review](index=30&type=section&id=3.1%20Market%20Review) In H1 2023, global economic recovery was weak, with high interest rates and geopolitical conflicts slowing world economic growth, though no recession signs emerged. China's economy showed post-pandemic recovery but lacked endogenous momentum, while Hong Kong's GDP growth underperformed expectations, with the Hang Seng Index falling by approximately **4%** - In H1 2023, global economic recovery was weak, with high interest rates and geopolitical conflicts slowing world economic growth, though no signs of recession emerged[65](index=65&type=chunk) - Mainland China's economy experienced a wave-like recovery, with a strong start in Q1, but lacked endogenous momentum in Q2, showing marginal improvement after June[65](index=65&type=chunk) - Hong Kong's GDP growth underperformed expectations, with the Hang Seng Index falling by approximately **4%** in the first half[65](index=65&type=chunk) [Group Strategy and Operations](index=30&type=section&id=3.2%20Group%20Strategy%20and%20Operations) The Group adheres to a core philosophy of prudent compliance and steady development, focusing on a strategic transformation towards 'specialization, focus, marketization, and institutionalization' to build an excellent industrial investment holding group. During the period, the Group strengthened its risk management system, implemented multiple measures to resolve existing risks, ensured ample liquidity, enhanced investment and management empowerment for its controlled entity SDHG New Energy, and sought investment opportunities in strategic emerging industries like new energy and new infrastructure - The Group adheres to the philosophy of 'prudent compliance and steady development', following a strategic transformation towards 'specialization, focus, marketization, and institutionalization', aiming to build an excellent industrial investment holding group[66](index=66&type=chunk) - During the reporting period, the Group established a comprehensive risk management system, advanced the disposal of existing risks (e.g., debt restructuring, debt transfer), and diversified financing channels to ensure ample liquidity[67](index=67&type=chunk) - The Group strengthened investment and management empowerment for its controlled entity SDHG New Energy, leveraging Shandong Hi-Speed Group's resources to promote integrated development of energy and infrastructure networks[67](index=67&type=chunk) - The Group seeks investment opportunities in strategic emerging industries such as new energy and new infrastructure to acquire platforms necessary for its transformation[67](index=67&type=chunk) [Business Review](index=31&type=section&id=3.3%20Business%20Review) The Group's four business segments showed varied performance in H1 2023: Industrial Investment recorded a profit due to strategic synergies; Standardized Investment incurred losses due to market fluctuations; Non-standardized Investment turned profitable by revitalizing existing businesses and adding quality projects; and Licensed Financial Services also turned from loss to profit [Industrial Investment](index=31&type=section&id=3.3.1%20Industrial%20Investment) The Group's Industrial Investment business focuses on strategic emerging industries like new energy and new infrastructure, combining controlling and minority equity investments to explore sub-sectors such as semiconductors, big data, energy storage, and photovoltaic components. The Group enhanced investment and management empowerment for SDHG New Energy, promoting cooperation with leading enterprises like CGN Wind Power, and successfully secured several high-quality new energy projects. This segment recorded a profit of **HKD 485,733 thousands** during the reporting period - Industrial Investment focuses on strategic emerging industries like new energy and new infrastructure, combining controlling and minority equity investments to research sub-sectors such as semiconductors, big data, energy storage technology, and photovoltaic components[68](index=68&type=chunk) - The Group strengthened investment and management empowerment for SDHG New Energy, leveraging Shandong Hi-Speed Group's brand and resource advantages to promote business linkage and industrial synergy, establishing strategic partnerships with leading enterprises like CGN Wind Power[69](index=69&type=chunk) - SDHG New Energy's inclusion in the Hang Seng Composite Index and Stock Connect (Shanghai and Shenzhen) reflects capital market recognition of its development quality[69](index=69&type=chunk) - The Industrial Investment business segment recorded a profit of approximately **HKD 485,733 thousands**[69](index=69&type=chunk) [Standardized Investment Business](index=32&type=section&id=3.3.2%20Standardized%20Investment%20Business) The Group's Standardized Investment business conducts equity and fixed-income investments using its own funds. Amidst sluggish A-share and Hong Kong stock markets and increased bond market volatility, the Group adopted strategies of low-position operation, diversified investment, and reduced duration, primarily focusing on technology, consumer, and new energy sectors, as well as short-term cash management products like US Treasury bonds, to control risk. During the reporting period, this business recorded a fair value loss of **HKD 293,736 thousands** - Standardized equity investments, amidst sluggish A-share and Hong Kong stock markets, prioritize risk control, maintain low positions, and primarily focus on technology, consumer, and new energy sectors[70](index=70&type=chunk) - Fixed-income standardized investments, through diversified investment and reduced duration strategies, primarily focus on short-term cash management products like US Treasury bonds or bank certificates of deposit, to address real estate liquidity crises and bond market volatility[70](index=70&type=chunk) - The Standardized Investment business recorded a fair value loss of approximately **HKD 293,736 thousands**, compared to a loss of approximately **HKD 401,942 thousands** in the prior period[71](index=71&type=chunk) [Non-standardized Investment Business](index=33&type=section&id=3.3.3%20Non-standardized%20Investment%20Business) The Group's Non-standardized Investment business prioritizes resolving existing risks by reducing credit exposure through debt restructuring, debt transfer, and introducing relief funds, while moderately engaging in strong credit entity guarantees and high-quality asset-backed pledge businesses. This segment turned profitable, recording a profit of **HKD 57,221 thousands** - Non-standardized investment business prioritizes resolving existing risks by reducing credit exposure through debt restructuring, debt transfer, and introducing relief funds[72](index=72&type=chunk) - Prudently seize investment opportunities, moderately engage in strong credit entity guarantees and high-quality asset-backed pledge businesses, and strengthen synergy with industrial investment in real economy sectors such as new energy, new infrastructure, and new technology[72](index=72&type=chunk) - The Non-standardized Investment business recorded a profit of approximately **HKD 57,221 thousands**, compared to a loss of approximately **HKD 788,189 thousands** in the prior period, achieving a turnaround to profitability[72](index=72&type=chunk) [Licensed Financial Services](index=33&type=section&id=3.3.4%20Licensed%20Financial%20Services) The Group holds Hong Kong SFC Type 1, 4, 5, 6, and 9 licenses, a Hong Kong Money Lenders License, and PRC QFLP fund manager and finance lease licenses, providing comprehensive cross-border investment and financing financial services to clients. During the reporting period, the Licensed Financial Services business recorded a profit of **HKD 107,547 thousands**, achieving a turnaround to profitability - The Group holds Hong Kong SFC Type **1**, **4**, **5**, **6**, and **9** licenses, a Hong Kong Money Lenders License, and PRC QFLP fund manager and finance lease licenses[73](index=73&type=chunk) - The Licensed Financial Services business recorded a profit of approximately **HKD 107,547 thousands**, compared to a loss of approximately **HKD 633,792 thousands** in the prior period, achieving a turnaround to profitability[73](index=73&type=chunk) [Outlook](index=34&type=section&id=3.4%20Outlook) Looking ahead to H2, global economic growth is expected to weaken, while China's economy is in a critical period of recovery and industrial upgrading, with central policies set to boost economic recovery and industrial development. The Group will optimize its asset allocation, focusing on industrial investment, supplemented by standardized and non-standardized investments, targeting strategic emerging industries like new energy and new infrastructure, while continuously resolving existing risks and enhancing comprehensive service capabilities - Global economic growth is expected to weaken in H2, while China's economy is in a critical period of recovery and industrial upgrading, with Central Political Bureau meeting deployments set to boost economic recovery and industrial development, positively impacting the Group's profit and balance sheet repair[74](index=74&type=chunk) - The Group will optimize its asset allocation structure, focusing on industrial investment, supplemented by standardized and non-standardized investments, to achieve long-term asset appreciation and maintain ample short-term liquidity[74](index=74&type=chunk) [Industrial Investment Outlook](index=34&type=section&id=3.4.1%20Industrial%20Investment%20Outlook) The Group will continue to deepen its strategic transformation, focusing on new energy and new infrastructure, two strategic emerging industries, to expand industrial investment scale through an organic combination of strategic and controlling equity investments. Specifically, in new energy, it will enhance investment and M&A capabilities for wind and solar power station's vertical industry chain and horizontal peer assets; in new infrastructure, it will explore high-quality new infrastructure assets to create a 'power + computing' new business model - The Group will continue to steadily advance and deepen its strategic transformation, focusing on new energy and new infrastructure, two strategic emerging industries, selecting target companies with excellent business models and stable cash flows, and organically combining strategic and controlling equity investments[75](index=75&type=chunk) - In new energy, the Group will enhance investment and M&A capabilities for wind and solar power station's vertical industry chain and horizontal peer assets; in new infrastructure, it will explore high-quality new infrastructure assets to create a 'power + computing' new business model[76](index=76&type=chunk) - The Group will consolidate its **2022** industrial acquisition achievements, accelerate the enhancement of 'investment + investment management' momentum, and strengthen empowering post-investment management for invested targets such as SDHG New Energy and SDHG Huaneng[76](index=76&type=chunk) [Standardized Investment Business Outlook](index=35&type=section&id=3.4.2%20Standardized%20Investment%20Business%20Outlook) Looking ahead to H2, domestic liquidity is expected to be relatively loose, and the Fed's rate hike cycle may be nearing its end, benefiting global capital markets. The Group will prioritize technology sectors aligned with national strategy, contributing to manufacturing upgrades and increased informatization/intelligence, as well as consumer sectors related to expanding domestic demand, to strategically invest in quality companies at low points - In H2, domestic liquidity is expected to be generally loose, and the Fed's rate hike cycle may be nearing its end, benefiting global capital market liquidity[77](index=77&type=chunk) - In terms of industry selection, the Group will prioritize technology sectors aligned with national strategy and consumer sectors related to expanding domestic demand, also considering industries and companies with bottoming-out performance or sustained high prosperity, to strategically invest at low points[77](index=77&type=chunk) [Non-standardized Investment Business Outlook](index=35&type=section&id=3.4.3%20Non-standardized%20Investment%20Business%20Outlook) The Group will continue to prioritize resolving existing risks by reducing credit exposure through debt restructuring, debt transfer, and litigation collection. Concurrently, it will leverage the geographical advantages and professional capabilities of its Hong Kong, Mainland, and Singapore teams to focus on financing needs in new energy, new consumption, and high-tech sectors, providing capital support to high-quality leading enterprises - The Group will continue to prioritize resolving existing risks by reducing credit exposure within its portfolio through asset revitalization methods such as debt restructuring, debt transfer, and litigation collection[78](index=78&type=chunk) - Leverage the advantages of Hong Kong, Mainland, and Singapore teams to focus on financing needs in new energy, new consumption, and high-tech sectors, selecting high-quality leading enterprises to provide capital support aligned with industrial transformation directions[78](index=78&type=chunk) [Licensed Financial Services Outlook](index=36&type=section&id=3.4.4%20Licensed%20Financial%20Services%20Outlook) The Group will prudently conduct Hong Kong and Mainland licensed financial services, primarily focusing on securities brokerage and QFLP/finance lease businesses that have synergistic effects with the Group's strategic transformation direction, to enhance comprehensive service capabilities - The Group will prudently conduct Hong Kong and Mainland licensed financial services, primarily focusing on securities brokerage and QFLP/finance lease businesses that have synergistic effects with the Group's strategic transformation direction, to enhance comprehensive service capabilities[79](index=79&type=chunk) [Liquidity and Financial Resources](index=36&type=section&id=IV.%20Liquidity%20and%20Financial%20Resources) [Overall Liquidity and Financial Resources](index=36&type=section&id=4.1%20Overall%20Liquidity%20and%20Financial%20Resources) As of June 30, 2023, the Group's total cash and cash equivalents decreased to **HKD 3,495,082 thousands** from year-end 2022. Total assets and borrowings both

Industrial Investment and Strategic Transformation - The scale of industrial investment assets reached HK$52.2 billion by the end of 2022, marking a significant increase[11]. - The Group successfully completed its first merger and acquisition transaction for controlling shareholding during the year[11]. - The investment development strategy was transformed to an "investment + investment management" model within the last year[11]. - The Group emphasized the importance of resource allocation and value growth through the advantages of its controlling shareholder, Shandong Hi-Speed Group Co., Ltd.[11]. - All members of the Group collaborated to seize the strategic transformation window, contributing to rapid growth across all business lines[11]. - The Group's industrial investment asset scale increased significantly to HK$52.2 billion by the end of 2022, marking a successful transformation into an industrial investment holding group[12]. - The strategic transformation focuses on emerging industries such as new energy and new technology, aligning with national policy directions for high-quality development[15]. - The Group completed the acquisition of 43.45% shares of Beijing Enterprises Clean Energy Group Limited for HK$4.685 billion, becoming its new controlling shareholder[22]. - The Group's investment strategy combines minority equity investment with holding investments to capture opportunities in both asset-intensive and high-growth sectors[20]. - The transformation aims to achieve a virtuous cycle of self-development by increasing the proportion of industrial investment and strengthening net assets[18]. - The Group's strategic transformation policy emphasizes specialization, concentration, marketization, and institutionalization to enhance operational efficiency[18]. - The Group's shift from short-duration proprietary investment to professional industrial investment is a strategic choice for sustainable development[15]. - The completion of the acquisition allowed the Group to quickly secure a foothold in the new energy sector, leveraging the professional capabilities of the acquired company[24][26]. - The Group aims to achieve a win-win situation in commercial and social value through its strategic initiatives and operational capabilities in the green and low-carbon sectors[46]. - The Group's strategic transformation aims to establish the Group as a respected industrial investment holding group focusing on emerging industries over the next five years[45]. Financial Performance and Growth - The Group recorded revenue of approximately HK$4,193,421,000, an increase of approximately 293.50% year-over-year, and gross profit of approximately HK$2,261,532,000, representing an increase of approximately 206.18% year-over-year[48]. - Profit for the year amounted to approximately HK$170,294,000, reflecting an increase of approximately 1,440.00% year-over-year, while the basic loss per share attributable to owners was approximately HK$7.61 cents[48]. - By the end of 2022, the Group's total assets reached approximately HK$68.96 billion, with the new energy sector accounting for 75.70% of total assets, and net assets increased to approximately HK$15.57 billion[24][26]. - SDHS New Energy raised approximately HK$13.72 billion in new funds for the year, representing a 53.90% increase compared to the previous period, significantly improving its liquidity and reducing its debt ratio[27][29]. - SDHS New Energy's net profit for FY2022 was approximately HK$226 million, marking a significant increase from the previous year[32]. - The Group's industrial investment business recorded a profit of approximately HK$1.71 billion for the Reporting Period[71]. - The Group's total deficit attributable to the owners was approximately HK$36,053,000 as of December 31, 2022, compared to total equity of HK$1,408,651,000 in 2021[96]. Acquisitions and Investments - The Group completed a major acquisition of Beijing Enterprises Clean Energy Group, becoming the controlling shareholder with 43.45% of shares, and also holds a 23.07% equity interest in BECE Legend, enhancing its green and environmental protection industry ecosystem[58]. - The Group completed the subscription of 48,804,039,247 new ordinary shares of Shandong Hi-Speed New Energy Group Limited at a consideration of approximately HK$4.685 billion, becoming the controlling shareholder[68]. - The Group invested in several high-quality projects, including NewLink Group, which achieved rapid growth and successfully listed on NASDAQ[69]. - The Group aims to consolidate the results of industrial acquisitions made in 2022 and enhance post-investment management to improve the overall value of invested enterprises[90]. Credit Risk Management and Financial Health - The Group's credit risk management policies include comprehensive due diligence on lending business and a review mechanism to ensure regulatory compliance and risk management adequacy[176]. - The Group's internal control measures for credit risk management are designed to ensure commercial reasonableness and rational pricing[176]. - The management considers that the credit risk of the Group has been significantly reduced due to the established internal control measures[196]. - The Group's management considered foreign exchange exposure to be insignificant during the Reporting Period, leading to no financial instruments held for hedging purposes[97]. - The Group's outstanding bonds included amounts of approximately HK$1,563,788,000 at a coupon rate of 3.95% and HK$3,900,621,000 at a coupon rate of 4.10%[97]. Market Conditions and Future Outlook - The compound annual growth rate of China's GDP over the past three years has been 4.5%, higher than the world average, indicating a stable economic environment for the Group's operations[53]. - The Group anticipates that the reform of the capital market will further facilitate industrial investment channels, presenting significant future development potential[87]. - The Chinese government is expected to increase support for high-tech industries and green investments, which will benefit the Group's industrial investment strategy[87]. - In 2023, the Group plans to leverage opportunities from the green and low-carbon industry's development and digital transformation in China[46]. Governance and Compliance - The company optimized its corporate governance structure and established a market-oriented governance mechanism to improve operational standards[28]. - The Group established a Special Asset Management Department to lead risk resolution and supervise the implementation of approved action plans, reporting to management regularly[195]. - The Board considers the provision for impairment to be appropriate based on the independent professional valuation[147].