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份內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 CHINA RUIFENG RENEWABLE ENERGY HOLDINGS LIMITED 中 國 瑞 風 新 能 源 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：00527） 截至二零二二年十二月三十一日止年度的全年業績公告 中國瑞風新能源控股有限公司（「本公司」）董事（「董事」）會（「董事會」）宣佈本 公司及其附屬公司（統稱「本集團」）截至二零二二年十二月三十一日止年度（或「報 告期間」）的綜合業績，連同過往年度的比較數字如下： ...

Financial Performance - The company reported revenue of RMB 179,744,000 for the six months ended June 30, 2022, a decrease of approximately 10% compared to RMB 199,303,000 for the same period in 2021[15]. - Gross profit for the same period was RMB 52,741,000, reflecting a decline of 35% from RMB 81,528,000 in the previous year[15]. - Operating profit was RMB 48,839,000, down 33% from RMB 72,449,000 year-on-year[15]. - The net loss attributable to equity holders was RMB 38,065,000, compared to a loss of RMB 30,862,000 in the prior year, representing an increase in loss of 23%[15]. - The loss for the reporting period was approximately RMB 39,453,000, compared to a loss of RMB 18,762,000 for the same period last year[35]. - The company reported a comprehensive loss of RMB 60,171,000 for the six months ended June 30, 2022, compared to RMB 11,766,000 in the same period of 2021[112]. - The company's basic and diluted loss per share for the period was RMB (0.019), compared to RMB (0.016) in the previous year[110]. - Total equity attributable to owners decreased to RMB 17,286 thousand from RMB 55,236 thousand year-over-year, representing a decline of 68.7%[116]. - Total liabilities increased to RMB 2,001,636 thousand from RMB 1,955,819 thousand, reflecting a rise of 2.3%[116]. Revenue Sources - Revenue from wind farm operations was approximately RMB 175,454,000, a decrease of about 12% from RMB 199,303,000 in the previous year[21]. - Revenue from external customers for the six months ended June 30, 2022, was RMB 179,744 million, compared to RMB 199,303 million for the same period in 2021, indicating a decrease of approximately 9.8%[171]. - The company had one major customer contributing over 10% of total revenue, with contributions of RMB 175,454 million for the six months ended June 30, 2022, down from RMB 199,303 million in the previous year[170]. Costs and Expenses - The sales cost for the reporting period was approximately RMB 127,003,000, accounting for about 71% of the wind power operating revenue, compared to 59% in the same period last year[28]. - Administrative expenses decreased by approximately 19% to about RMB 21,420,000, down from RMB 26,438,000 in the same period last year[31]. - Employee benefits costs, including director remuneration, totaled RMB 20,970 million for the six months ended June 30, 2022, compared to RMB 31,230 million for the same period in 2021, reflecting a decrease of approximately 32.9%[178]. - Financing costs for the reporting period were approximately RMB 80,227,000, an increase from RMB 77,993,000 in the same period last year[33]. Debt and Financing - The net debt as of June 30, 2022, was RMB 1,531,972,000, with a net asset value of RMB 257,924,000, resulting in a debt-to-equity ratio of 593%[15]. - Total borrowings increased to approximately RMB 1,796,989,000 as of June 30, 2022, from RMB 1,703,717,000 as of December 31, 2021, an increase of about RMB 93,272,000[38]. - The company has been actively restructuring its debt obligations through various amendments to the convertible bond agreements over the years[46]. - The company entered into a deferral agreement with convertible bondholders to extend the maturity of the convertible bonds by one year, from March 25, 2021, to March 25, 2022[54]. Strategic Focus and Market Position - The company aims to enhance its market position in renewable energy by focusing on wind power development and seeking new investment opportunities[19]. - The company plans to continue its strategic development in the wind energy sector to achieve sustainable growth and profitability[19]. - The company aims to enhance its wind farm business and expand into other clean energy sectors, positioning itself as a pillar company in the renewable energy industry in Northern China[77]. - The company will continue to seek acquisition opportunities to strengthen its operational capabilities in the wind power sector and expand its maintenance services[77]. Cash Flow and Assets - Cash flow from operating activities showed a net cash inflow of RMB 33,328 thousand, down 43.1% from RMB 58,631 thousand in the previous year[127]. - Cash flow from investing activities resulted in a net cash inflow of RMB 2,179 thousand, compared to a net outflow of RMB 23,827 thousand in the same period last year[127]. - Cash flow from financing activities recorded a net outflow of RMB 16,223 thousand, a significant improvement from a net outflow of RMB 446,859 thousand in the previous year[129]. - As of June 30, 2022, the total assets as of June 30, 2022, were RMB 2,259,560,000, a slight increase from RMB 2,237,007,000 as of December 31, 2021[114]. Corporate Governance and Compliance - The company has complied with the corporate governance code, with no chairman appointed during the reporting period[89]. - An internal control consultant was hired to review and improve the company's internal controls and risk management systems[90]. - The company’s financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and comply with applicable disclosure requirements[135]. Shareholder Information - The company has issued and fully paid 1,979,141,000 shares at HKD 0.01 each as of June 30, 2022, unchanged from December 31, 2021[200]. - No interim dividend was recommended for the reporting period ending June 30, 2021[94]. - The company did not declare any interim dividend for the six months ended June 30, 2022, consistent with the previous year[189].

Company Overview - In 2021, the company's indirect control over Hong Kong Hong Song New Energy Investment Co., Ltd. reached 86.55% through gradual acquisitions[12]. - The company operates primarily in the wind farm sector, focusing on investment holding and wind power generation[117]. - The company aims to establish a solid market position in the renewable energy industry in the near future[18]. Financial Performance - Revenue from wind farm operations for the year ended December 31, 2021, was approximately RMB 349,995,000, an increase of about 1% compared to RMB 346,401,000 in 2020[23]. - The company's revenue for the year ended December 31, 2021, was approximately RMB 352,407,000, a slight increase of 2% from RMB 346,401,000 in 2020[48]. - The gross profit for the year was approximately RMB 112,770,000, resulting in a gross margin of about 32%, down from 36% in the previous year[53]. - The net loss for the year was approximately RMB 358,678,000, an increase of 76% compared to RMB 203,973,000 in 2020[60]. - The operating loss for the year was approximately RMB 195,638,000, a decline from an operating profit of RMB 60,857,000 in 2020[45]. - The company's administrative expenses increased by approximately 57% to about RMB 71,559,000, primarily due to share-based payments[55]. Market and Industry Trends - In 2021, China's GDP grew by 8.1% year-on-year, and the total electricity consumption increased by 10.3%[17]. - The anticipated market reforms in electricity pricing and the restart of carbon emission trading rights (CCER) are expected to bring additional revenue to the company[18]. - The Chinese government continues to support the wind power industry, which is expected to benefit the company's development[28]. - The average utilization hours for wind power in China reached 2,246 hours, with curtailment of wind power increasing to 20.6 billion kWh, up from 16.6 billion kWh in 2020[26]. Strategic Initiatives - The company aims to enhance its position in the renewable energy sector by expanding its wind power operations and exploring new clean energy opportunities[37]. - The company plans to focus on improving the operational efficiency of existing wind farms to reduce costs and increase efficiency[18]. - The company is actively seeking other potential development opportunities in the renewable energy sector[14]. - The company is exploring expansion into hydrogen energy-related businesses, including hydrogen vehicle production and hydrogen station construction[36]. Debt and Financial Management - The net debt to equity ratio rose significantly to 519% from 215% in the previous year[46]. - The current ratio decreased to 118% from 158% in the previous year, indicating a decline in liquidity[46]. - Total borrowings decreased to approximately RMB 1,703,717,000 as of December 31, 2021, down by approximately RMB 517,915,000 from RMB 2,221,632,000 as of December 31, 2020[65]. - The capital debt ratio increased from approximately 80% as of December 31, 2020, to approximately 87% as of December 31, 2021[65]. Corporate Governance - The company has adopted corporate governance practices to maintain the highest standards[186]. - The board consists of seven directors, including four executive directors and three independent non-executive directors[197]. - The independent non-executive directors have confirmed their independence according to the listing rules[200]. - The company has complied with the corporate governance code, with independent non-executive directors constituting at least one-third of the board[200]. Employee and Operational Insights - Employee costs for the year ended December 31, 2021, amounted to approximately RMB 50.5 million, an increase from RMB 39.15 million in 2020[100]. - The company has approximately 154 full-time employees as of December 31, 2021, compared to 125 employees in 2020[100]. - The company emphasizes the importance of maintaining good relationships with employees, customers, and suppliers for sustainable development[172]. Legal and Compliance Issues - The auditor's report for the year ended December 31, 2021, included a qualified opinion due to insufficient audit evidence regarding the carrying values of interests in associates and receivables[175]. - The company has initiated legal proceedings in China to recover amounts owed by the associate company, which includes a court ruling requiring the associate to repay approximately RMB 36,000,000 for undelivered equipment[181]. - Management has assessed the recoverability of loans and related interest receivables from the associate, concluding that the risk of default has significantly increased[177]. Future Outlook - The company is positioned to adapt to the global energy structure transformation and enhance its development quality and efficiency[18]. - The company has been actively involved in discussions regarding its business outlook and strategies for future growth[118]. - The company anticipates that the qualified opinion will continue to affect the comparative figures in the consolidated financial statements for the year ending December 31, 2022, but expects to resolve this by the year ending December 31, 2023[183].

中國瑞風新能源控股有限公司 (於関曼群島註冊成立的有限公司) (股份代號：00527) 中期報告 2021 目錄目錄 2 公司資料 | --- | --- | --- | --- | --- | --- | --- | |-------|------------------|-------|-------|-------|-------|-------| | | | | | | | | | 5 | 財務業績概要 | | | | | | | 6 | 行政總裁報告 | | | | | | | 8 | 管理層討論與分析 | | | | | | | 22 | 權益披露 | | | | | | | 25 | 企業管治 | | | | | | | 26 | 其他資料 | | | | | | | 29 | 簡明綜合財務報表 | | | | | | | | | | | | | | | | | | | | | | 公司資料 上市地點 香港聯合交易所有限公司 股份代號：00527 執行董事 張志祥先生（行政總裁） 寧忠志先生 李天海先生 彭子瑋先生 獨立非執行董事 屈衛東先生 胡曉琳女士 姜森林先生 審核委員會 姜森林先生（審核 ...

Wind Power Business - The company holds an indirect controlling interest of 86.55% in Hong Song New Energy, which has an installed capacity of 398.4 MW and a maximum capacity of 596.4 MW[8] - The first phase of the wind farm project in Baotou, Inner Mongolia, is expected to reach an installed capacity of 49.8 MW and is still under construction[9] - The company plans to accelerate its wind power business and seeks to establish a solid market position in the renewable energy sector[15] - The total installed capacity of the Hong Song wind farm is 398.4 MW, contributing to the group's total revenue from wind farm operations in 2020[18] - The Chinese government is expected to continue supporting the wind power industry, which will provide significant opportunities for the company's wind farm business[22] - The company plans to focus resources on the development and operation of wind farms, aiming to become a pillar company in the renewable energy sector in northern China[28] - The company is committed to developing wind farm projects to provide clean renewable energy, reducing reliance on traditional fossil fuels[140] Financial Performance - Revenue from wind farm operations for the year ended December 31, 2020, was approximately RMB 346,401,000, a decrease of about 4% compared to RMB 361,683,000 in 2019[17] - Profit from wind farm operations for the same period was approximately RMB 68,944,000, down about 10% from RMB 76,350,000 in 2019[17] - For the year ended December 31, 2020, the company's revenue was approximately RMB 346,401,000, a decrease of RMB 15,282,000 or 4% compared to RMB 361,683,000 for the year ended December 31, 2019[33] - The gross profit for the year ended December 31, 2020, was approximately RMB 112,613,000, resulting in a gross margin of about 33%, compared to 32% in 2019[39] - The operating profit decreased by 29% to RMB 60,857,000 for the year ended December 31, 2020, down from RMB 85,140,000 in 2019[33] - The company reported a loss before tax of RMB 173,877,000 for the year ended December 31, 2020, compared to a loss of RMB 61,607,000 in 2019, representing an increase in loss of 182%[33] - The net loss for the year ended December 31, 2020, was RMB 203,973,000, a significant increase of 153% from RMB 80,778,000 in 2019[33] - The company's cash and cash equivalents decreased to RMB 1,362,795,000 as of December 31, 2020, compared to RMB 1,480,490,000 in 2019[33] - The net asset value as of December 31, 2020, was RMB 633,223,000, down from RMB 790,353,000 in 2019[33] - The current ratio improved to 158% as of December 31, 2020, compared to 123% in 2019[33] - The total loss for the year ended December 31, 2020, was approximately RMB 203,973,000, a substantial increase from the loss of RMB 80,778,000 in 2019[48] Market and Economic Context - In 2020, China's GDP grew by 2.3% despite the impact of COVID-19, highlighting a gradual recovery in economic activities[12] - The Chinese government aims for non-fossil fuels to account for 15% of the energy structure by 2020, 20% by 2030, and 50% by 2050, emphasizing the importance of renewable energy like wind power[13] - In 2020, China added 71.67 GW of new wind power capacity, an increase of approximately 178% compared to 2019, with a cumulative installed capacity of 280 GW, accounting for about 13% of total installed power generation capacity[20] Corporate Governance and Structure - The board of directors includes four executive directors and three independent non-executive directors, with all retiring directors eligible for re-election at the upcoming annual general meeting[106] - The company has not appointed a chairman, with the CEO, Mr. Zhang, responsible for daily management, and the board believes this will not adversely affect decision-making[181] - The board consists of seven directors, including four executive directors and three independent non-executive directors, with a total of 12 board meetings held in the year ended December 31, 2020[172] - The independent non-executive directors account for at least one-third of the board, ensuring compliance with listing rules[171] - The company is committed to maintaining high standards of corporate governance and has adopted a set of governance principles[161] - The company has complied with the corporate governance code as per the listing rules, with some deviations noted regarding attendance at the annual general meeting[162] Legal and Compliance Issues - The company is seeking legal advice regarding court proceedings involving debtors and assessing the recoverability of investments in joint ventures[148] - The company has recognized a full provision for expected credit losses on interests in joint ventures and receivables from joint ventures due to high default risk[147] - The company is seeking legal advice and preparing evidence to pursue further legal action to recover approximately RMB 36,323,000 for remaining equipment costs and RMB 42,100,000 for deposits[153] - The board believes that if the court makes a final ruling on the legal actions against the supplier, there will be no uncertainty regarding the recoverability of other receivables[154] Share Capital and Financing - The company issued convertible bonds totaling HKD 313,795,000, with a conversion price of HKD 0.485 per share, which could potentially result in the issuance of 647,000,000 new shares, representing approximately 35.96% of the company's issued share capital at the time of the agreement[62] - The company completed a placement of 180,000,000 shares at a price of HKD 0.25 per share, raising a net amount of approximately HKD 44,097,000, which was used to repay other loans and interest[67] - The company extended the maturity of the convertible bonds by one year, now set to mature on March 25, 2022[66] - The interest rate on the convertible bonds was revised from 8% to 10% as part of a supplemental agreement, which was subject to shareholder approval[64] - The company has not issued additional non-listed corporate bonds during the reporting period, with a total principal amount of HKD 1,000,000 maturing and redeemed[54] Risk Management - The company emphasizes the importance of effective risk management and internal control measures to ensure operational compliance, asset security, and accurate financial reporting[187] - The risk management strategy includes setting objectives, information collection, risk identification, analysis, response, monitoring, and reporting[188] - The management regularly maintains and evaluates the risk management system to ensure its effectiveness[189] - The board conducts an annual review of major risks faced by the group and monitors the response measures[200] Employee and Operational Information - The employee costs for the year ended December 31, 2020, amounted to approximately RMB 39,152,000, down from RMB 42,764,000 in 2019, with a workforce of about 125 full-time employees[78] - The company has implemented a training program for new directors to ensure they understand their responsibilities and the company's operations[177] Other Financial Information - The auditor's fees for the year ended December 31, 2020, amounted to HKD 1,300,000 for audit services and HKD 180,000 for non-audit services[182] - The company did not recommend any dividend for the year ended December 31, 2020, consistent with the previous year where no dividend was declared[98] - The company has not made any charitable or other donations during the year, maintaining the same stance as in 2019[102]

Financial Performance - Revenue for the six months ended June 30, 2020, was RMB 176,149,000, a decrease of 13% compared to RMB 202,839,000 in the same period of 2019[12] - Gross profit for the same period was RMB 65,730,000, down 38% from RMB 105,784,000 in 2019[12] - Operating profit decreased by 37% to RMB 62,578,000 from RMB 98,661,000 in 2019[12] - The net loss for the period was RMB 18,067,000, compared to a profit of RMB 4,020,000 in the previous year, representing a significant decline[12] - The company incurred a loss attributable to equity holders of RMB 28,513,000 for the period, compared to a loss of RMB 19,255,000 in the previous year, reflecting a worsening of approximately 48%[107] - The total comprehensive loss for the period was RMB 28,623,000, a significant decline from a total comprehensive income of RMB 3,271,000 in the previous year[110] - The company reported a significant foreign exchange loss of RMB 17,492,000 related to the translation of financial statements from overseas operations[110] Cash Flow and Liquidity - The company's cash/debt net position was RMB (1,464,635,000) with a liquidity ratio of 90%[12] - The company's cash and cash equivalents dropped to RMB 40,928,000 from RMB 103,456,000, reflecting a liquidity challenge[113] - The net cash from operating activities for the six months ended June 30, 2020, was RMB 93,717,000, a decrease of 11.4% compared to RMB 105,732,000 for the same period in 2019[124] - The company’s cash flow from investing activities was negative at RMB (19,029,000) for the six months ended June 30, 2020, compared to a positive cash flow of RMB 2,441,000 in the same period of 2019[124] - The company’s financing activities resulted in a net cash outflow of RMB (136,605,000) for the six months ended June 30, 2020, compared to RMB (51,691,000) in the same period of 2019, indicating increased financing costs[124] Assets and Liabilities - The total assets value increased to RMB 801,152,000, compared to RMB 790,353,000 at the end of 2019[12] - The company's non-current assets decreased to RMB 1,588,045,000 as of June 30, 2020, down from RMB 1,663,763,000 at the end of 2019[113] - Current liabilities increased to RMB 1,021,021,000 from RMB 724,450,000, indicating a rise in financial obligations[113] - The company’s borrowings increased to RMB 844,308,000 from RMB 569,300,000, indicating a rise in debt levels[113] - The total liabilities for reportable segments as of June 30, 2020, were RMB 1,703,454,000, compared to RMB 1,761,901,000 as of December 31, 2019, showing a decrease of about 3%[153] Operational Efficiency - Administrative expenses decreased by approximately 56% to about RMB 16,414,000, down from RMB 37,039,000 in the same period last year[32] - The cost of sales was approximately RMB 110,419,000, accounting for about 63% of the wind power operation revenue, compared to 48% in the same period last year[29] - The adjusted profit before tax for the wind farm segment was RMB 45,051,000 for the six months ended June 30, 2020, compared to RMB 102,365,000 for the same period in 2019, indicating a decrease of about 56%[150] - The total segment profit was RMB 46,992,000 for the six months ended June 30, 2020, compared to RMB 106,965,000 for the same period in 2019, indicating a decline of approximately 56%[150] Strategic Initiatives - The company aims to accelerate its wind power business and seeks to secure a stable market position in the industry[22] - The Chinese government is expected to provide greater policy support for renewable energy industries, including wind power, as part of its strategic initiatives[18] - The company is exploring opportunities in the financial sector to diversify its revenue sources and mitigate business risks[15] - Future strategies include leveraging existing wind farms to identify new development opportunities in the wind power sector[22] - The group aims to enhance its wind farm business and become a pillar company in the renewable energy sector in Northern China[75] - The group plans to explore opportunities for cooperation and acquisitions in other new clean energy sectors beyond wind power[75] Financing Activities - The company issued convertible bonds with a total principal amount of HKD 171,600,000, with a conversion price of HKD 0.65 per share, potentially resulting in the issuance of 264,000,000 shares, representing approximately 14.67% of the company's issued share capital as of the agreement date[50] - The company completed a placement of 180,000,000 shares at a price of HKD 0.25 per share, raising approximately HKD 44,097,000 net of expenses, which was used to repay other loans and interest on convertible bonds[59] - The total amount of convertible bonds issued was HKD 313,795,000, with a conversion price of HKD 0.485 per share, potentially resulting in the issuance of 647,000,000 shares, representing approximately 35.96% of the company's issued share capital as of the agreement date[56] - The company is currently negotiating with bondholders regarding the extension of the maturity date and other terms of the remaining outstanding bonds[55] Employee and Operational Metrics - The employee costs for the reporting period amounted to approximately RMB 19,747,000, compared to RMB 19,622,000 for the same period in 2019[70] - The group has approximately 126 full-time employees as of June 30, 2020, down from 130 employees as of December 31, 2019[70] - The company did not recommend any interim dividend for the reporting period, consistent with the previous year[95] - The company has adopted a share option scheme effective from June 1, 2015, but no options were granted during the reporting period[96][97]

Company Structure and Investments - The company has an indirect control of 86.55% in Hong Kong Red Pine New Energy Investment Co., Ltd. (Red Pine), which has an installed capacity of 398.4 MW and a maximum capacity of 596.4 MW[8] - The company acquired a 49% voting interest in Shenzhen Qianhai Jiefeng Financing Leasing Co., Ltd., which helps expand financing channels and reduce overall financing costs[9] - The company is actively seeking investment opportunities in other renewable energy sectors and is in contact with multiple potential partners in the financial industry[10] - The company plans to focus on wind farm development and operations, aiming to become a pillar company in the renewable energy sector in northern China[30] - The company will seek opportunities for cooperation and acquisitions in other clean energy sectors beyond wind power[30] Financial Performance - Revenue from wind farm operations for the year ended December 31, 2019, was approximately RMB 361,683,000, compared to RMB 361,184,000 for the year ended December 31, 2018, showing a slight increase[16] - Profit from wind farm operations was approximately RMB 76,350,000, a decrease of about 29% compared to RMB 107,576,000 in 2018[16] - For the year ended December 31, 2019, the company's revenue was approximately RMB 361,683,000, a slight increase of 0.1% from RMB 361,184,000 in 2018[36] - The gross profit for the year was approximately RMB 116,466,000, down 19% from RMB 143,811,000 in 2018, resulting in a gross margin of about 32% compared to 40% in the previous year[40] - Operating profit decreased to RMB 85,140,000, a decline of 17% from RMB 102,933,000 in 2018[36] - The company reported a net loss of RMB 80,778,000 for the year, a significant increase of 117% compared to a loss of RMB 37,258,000 in 2018[46] Market and Industry Trends - In 2019, China added 25% more wind power capacity, totaling 25.74 million kilowatts, with cumulative installed capacity reaching 210 million kilowatts, accounting for about 10% of total installed power generation capacity[21] - The average utilization hours for wind power nationwide were 2,082 hours, with curtailment of wind power reduced to 16.9 billion kilowatt-hours from 27.7 billion kilowatt-hours in 2018, a decrease of 10.8 billion kilowatt-hours[21] - The Chinese government continues to support the wind power industry, providing a favorable policy environment for the company's wind farm business development[21] - The company anticipates that the renewable energy sector, particularly wind power, will receive increased policy support post the "13th Five-Year Plan" period[12] - The target for wind power development by the end of 2020 is set at 250 GW, with an expected compound annual growth rate of 10%-20% in installed capacity over the next five years[27] Operational Strategy - The company aims to strengthen its market position in the wind power sector by leveraging its wind farms and seeking new development opportunities[14] - The company is exploring financial services such as leasing and securities trading to diversify its revenue streams[12] - The company intends to enhance its existing renewable energy resources while expanding the scale and efficiency of wind farm operations[31] - The company will explore potential mergers and acquisitions to strengthen its position in the renewable energy industry[30] - The company aims to establish joint ventures with investors in the securities trading industry to develop its securities trading business[30] Financial Health and Debt Management - The financing costs rose to approximately RMB 148,580,000, up from RMB 120,434,000 in 2018, primarily due to the issuance of convertible bonds[44] - The net debt to equity ratio increased to 187% from 161% in the previous year[36] - The current ratio improved to 123% from 70% in 2018, indicating better short-term financial health[36] - Total borrowings increased to approximately RMB 1,583,946,000 as of December 31, 2019, up by RMB 110,349,000 from RMB 1,473,597,000 as of December 31, 2018[49] - The capital debt ratio rose from approximately 66% as of December 31, 2018, to about 69% as of December 31, 2019, calculated based on total liabilities divided by total assets[51] Corporate Governance - The company has a major shareholder, Diamond Holdings, owning 485,174,325 shares, which accounts for approximately 26.97% of the issued share capital as of December 31, 2019[79] - The company has appointed several executive directors with extensive experience in the power generation industry, enhancing its management capabilities[81][82][83] - The management team includes individuals with significant backgrounds in investment banking and corporate finance, which may facilitate future strategic initiatives[85][88] - The company has a strong emphasis on corporate governance with independent non-executive directors overseeing key committees[85][87] - The board of directors consists of seven members, including four executive directors and three independent non-executive directors, ensuring a balanced governance structure[157] Risk Management - The company emphasizes the importance of effective risk management and internal control measures to ensure operational compliance, asset security, and accurate financial reporting[177] - The risk management strategy includes setting objectives, information collection, risk identification, analysis, response, monitoring, and reporting[178] - The board of directors is responsible for evaluating and determining the nature and extent of risks acceptable to the company in achieving strategic goals[182] - The company implements risk mitigation plans to reduce the likelihood and severity of risks to acceptable levels[184] - Regular monitoring and review processes are in place to ensure compliance with management directives and to address necessary actions regarding risks[185] Shareholder Relations and Dividends - The board of directors did not recommend any dividend for the year ending December 31, 2019, consistent with the previous year[98] - The company has not made any charitable or other donations during the year, maintaining the same stance as in 2018[104] - The company has not granted any stock options under the stock option plan during the year, and there are no unexercised options as of December 31, 2019[115] - The company has not entered into any significant contracts with its controlling shareholders or their subsidiaries during the year[117] - The company confirmed compliance with the disclosure requirements of the Listing Rules regarding connected transactions[127]

Financial Performance - Revenue for the six months ended June 30, 2019, was RMB 202,839,000, a decrease of 2% compared to RMB 207,445,000 in the same period of 2018[6] - Gross profit for the same period was RMB 105,784,000, down 4% from RMB 110,720,000 year-on-year[6] - Operating profit decreased by 20% to RMB 98,661,000 from RMB 122,742,000 in the previous year[6] - Profit before tax fell by 62% to RMB 27,548,000 compared to RMB 72,476,000 in the prior year[6] - The net profit attributable to equity holders was RMB (19,255,000), a significant decline from RMB 20,489,000 in the same period last year, representing a 194% decrease[6] - The company recorded a net profit of approximately RMB 4,020,000 for the reporting period, a significant decrease from RMB 44,140,000 for the six months ended June 30, 2018[12] - Total comprehensive income for the period was RMB 3,271 thousand, down from RMB 36,359 thousand, marking a decrease of 91.0%[69] - The company reported a comprehensive loss of RMB (7,784) thousand for the six months ended June 30, 2019, compared to a loss of RMB (1,037) thousand in the same period of 2018[80] Revenue and Operations - Revenue from wind power operations was approximately RMB 202,839,000, down about 2% from RMB 207,445,000 for the same period in 2018[15] - The company's wind power revenue for the six months ended June 30, 2019, was RMB 150,428,000, a decrease of 1.6% from RMB 154,679,000 in the same period of 2018[92] - Wind power subsidies amounted to RMB 55,790,000 for the six months ended June 30, 2019, compared to RMB 56,430,000 in the previous year, reflecting a decline of 1.1%[92] - The company aims to accelerate its wind power business and seek new development opportunities to secure a solid market position in the wind power industry[12] Expenses and Costs - Administrative expenses increased by approximately 86% to about RMB 37,039,000, compared to RMB 19,921,000 for the six months ended June 30, 2018[20] - Financing costs rose to approximately RMB 71,977,000, up from RMB 55,578,000 for the same period in 2018, primarily due to the issuance of convertible bonds[21] - The total interest expenses for the six months ended June 30, 2019, were RMB 71,977,000, an increase of 29.5% from RMB 55,578,000 in the same period of 2018[94] - The total employee costs for the six months ended June 30, 2019, were RMB 19,622,000, an increase of 6% from RMB 18,518,000 in the same period of 2018[94] Financial Position - The company's total borrowings as of June 30, 2019, were approximately RMB 1,497,664,000, an increase of about RMB 24,067,000 from RMB 1,473,597,000 as of December 31, 2018[26] - The capital debt ratio remained stable at approximately 0.66 as of June 30, 2019, consistent with December 31, 2018[28] - The net asset value of the company was RMB 907,686 thousand, up from RMB 878,519 thousand, showing an increase of 3.3%[73] - The total liabilities decreased to RMB 1,016,275 thousand from RMB 782,286 thousand, indicating an increase of 30.0%[73] Investments and Acquisitions - The company is exploring the acquisition of a wind turbine manufacturer to expand its downstream manufacturing business[8] - The company plans to use approximately 50% of the net proceeds from the issuance of convertible bonds for potential acquisitions and wind farm development, 40% for repaying outstanding loans, and 10% for general working capital[33] - As of June 30, 2019, the company had capital commitments of RMB 1,170,050,000 for investments in subsidiaries and property acquisitions[153] Governance and Compliance - The company has established a remuneration committee, a nomination committee, and an audit committee to oversee governance and compliance matters[63][64][65] - The board of directors approved and authorized the publication of the interim financial statements on August 28, 2019[166] Convertible Bonds - The company plans to issue convertible bonds with a total amount of HKD 313,795,000, with a conversion price of HKD 0.485 per share[36] - The company extended the maturity date of the convertible bonds to December 15, 2019, and increased the interest rate from 8% to 10% effective from June 15, 2019[46] - The company has the option to convert the outstanding principal of the convertible bonds into shares at a conversion price of HKD 0.485 per share[141] - The total liabilities related to convertible bonds amounted to RMB 424,723,000, with interest expenses of RMB 31,521,000 during the period[147] Cash Flow and Liquidity - The net cash generated from operating activities for the six months ended June 30, 2019, was RMB 105,732 thousand, compared to a net cash used of RMB (23,996) thousand in the same period of 2018[80] - The total cash and cash equivalents at the end of the period increased to RMB 122,722 thousand from RMB 104,767 thousand in 2018, reflecting a net increase of RMB 56,482 thousand[80] Market Outlook - The Chinese government is expected to provide greater policy support for the renewable energy sector, particularly wind power, as part of its strategic initiatives[10] - The implementation of a renewable energy purchase management regulation is anticipated to support the company's business development[10] - The establishment of a national carbon emissions trading market could provide additional revenue opportunities through the sale of carbon credits[10]

Company Operations and Strategy - The company holds an indirect control of 86.55% in Hong Song New Energy, which has an installed capacity of 398.4 MW, with a maximum capacity of 596.4 MW[10] - The first phase of the wind farm project in Baotou is expected to reach an installed capacity of 49.8 MW and is still under construction, projected to generate revenue in the coming years[10] - The company is actively seeking investment opportunities in other renewable energy sectors and is in contact with potential partners in the financial industry[11] - The company aims to enhance development quality and efficiency, striving for a strong asset scale, market share, and sustainable development capabilities[14] - The company is exploring the acquisition of a wind turbine manufacturer to expand its downstream manufacturing business[13] - The company plans to focus on wind farm development and operations, aiming to become a pillar company in the renewable energy sector in northern China[35] - Future growth is expected in the wind power sector, supported by government policies and increasing public attention towards renewable energy[33] - The company is committed to expanding its operations and enhancing its financial performance in the coming years[113] - The company is focused on developing, constructing, and operating new energy projects across China, the US, Europe, and the Asia-Pacific region[81] Financial Performance - For the year ended December 31, 2018, the company recorded a net loss of approximately RMB 37.26 million, compared to a net profit of approximately RMB 24.13 million in 2017[17] - Wind power revenue was approximately RMB 361.18 million, a decrease of about 7% from RMB 389.99 million in 2017[20] - Profit from wind power operations was approximately RMB 107.58 million, down about 21% from RMB 136.09 million in 2017[20] - The company's revenue for the year ended December 31, 2018, was approximately RMB 361,184,000, a decrease of about 7% compared to RMB 389,996,000 in 2017[42] - Wind power revenue was RMB 269,508,000 in 2018, down 6% from RMB 286,617,000 in 2017[42] - Wind power subsidies decreased by 11% to RMB 97,886,000 in 2018 from RMB 110,291,000 in 2017, contributing to the overall loss[42] - The company's gross profit for 2018 was RMB 143,811,000, a decline of 19% from RMB 176,863,000 in 2017[39] - Operating profit fell to RMB 102,933,000 in 2018, a decrease of 42% compared to RMB 176,071,000 in 2017[39] - The company reported a net loss attributable to equity holders of RMB 64,212,000 in 2018, compared to a loss of RMB 7,090,000 in 2017, representing a significant increase of 806%[39] Market and Industry Trends - In 2018, China's GDP growth rate was 6.6%, highlighting the importance of clean energy consumption and the strategic support for the wind power industry[14] - The average utilization hours for wind power in China increased by 147 hours to 2,095 hours in 2018, while curtailment of wind power decreased to 27.7 billion kWh from 41.9 billion kWh in 2017[25] - The Chinese government is expected to continue supporting the wind power industry, providing a favorable environment for the company's wind power operations[25] - The company anticipates a continued decline in wind power prices, which may impact profitability due to adjustments in the feed-in tariff policy[28] - The average utilization hours for wind turbines in Hebei province were 2,250 hours in 2017 and decreased to 2,095 hours in 2018, indicating potential volatility risks[27] Financial Structure and Liabilities - The current ratio decreased to 70% in 2018 from 87% in 2017, indicating a decline in liquidity[39] - The net debt to equity ratio increased to 161% in 2018 from 134% in 2017, reflecting higher leverage[39] - The capital debt ratio increased from approximately 62% as of December 31, 2017, to about 66% as of December 31, 2018, indicating a higher level of leverage[56] - The net current liabilities increased to approximately RMB 273,559,000 as of December 31, 2018, compared to RMB 82,712,000 in 2017, primarily due to the issuance of convertible bonds[53] - As of December 31, 2018, total borrowings were approximately RMB 1,473,597,000, an increase of about RMB 116,866,000 from RMB 1,356,731,000 in 2017, mainly due to new borrowings during the reporting period[54] Corporate Governance and Management - The management team includes seven directors, with four being executive directors and three independent non-executive directors[90] - The company emphasizes strong corporate governance practices to enhance management quality and protect shareholder interests[191] - The board consists of seven directors, including four executive directors and three independent non-executive directors, with terms for independent directors set at two years[200] - The board oversees the overall strategic planning and approves major financing and investment proposals, reviewing the financial performance of the group[196] - The company has arranged liability and indemnity insurance for its directors and senior management as per the corporate governance code[199] Employee and Operational Costs - Employee costs for the year ended December 31, 2018, amounted to approximately RMB 40,360,000, compared to RMB 39,408,000 in 2017[88] - Administrative expenses increased by approximately 47% to about RMB 82,760,000, primarily due to foreign exchange losses of approximately RMB 7,515,000 and share-based payments of approximately RMB 23,624,000[47] Investments and Acquisitions - The company has not entered into any legally binding contracts or approved documents as of December 31, 2018[83] - The company established a non-binding cooperation agreement with Zhongke Chuang Financial Holdings Group for strategic collaboration in development financing[80] - The company plans to invest a total of RMB 10 billion in various financial products from 2014 to 2019[81] - The company has not made any charitable or other donations during the year, maintaining the same stance as the previous year[122] Shareholder Information - Major shareholders include Diamond Holdings with 539,562,325 shares (22.05%) and Yinghui Limited with 606,562,887 shares (24.80%)[163][164] - The largest customer accounts for 100% of sales, while the top five customers also account for 100%[169] - The largest supplier represents 31% of purchases, and the top five suppliers account for 67%[169]