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]