中國核能科技集團有限公司 China Nuclear Energy Technology Corporation Limited (Incorporated in Bermuda with limited liability) (於百慕蓬註冊成立之有限公司) Stock Code 股份代號 : 611 CONTENTS 目錄 2 CORPORATE INFORMATION 公司資料 4 CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 簡明綜合損益及其他全面收益表 6 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 簡明綜合財務狀況表 8 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 簡明綜合權益變動表 9 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS 簡明綜合現金流量表 10 NOTES TO THE CONDENSED CO ...

XX ENNE 中國核能科技集團有限公司 China Nuclear Energy Technology Corporation Limited Stock Code 股份代號：611 2019 ANNUAL REPORT 年報 Content 目錄 Content 目錄 | --- | |-------| | | | | | | | | | | | | | | | | | --- | --- | |-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 240 2 Corporate Information 公司資料 Chairman's Statement 主席報告 Directors' Report 董事會報告 Corporate Governance Report 企業管治報告 Independent Auditor's Report 獨立核數師報告 綜合損益及其他全面收益表 Consolidated Statement of Profit or Loss and Other Comprehensive ...

Financial Performance - The company reported revenue of HKD 1,037,388,000 for the six months ended June 30, 2019, representing a slight increase of 1.3% compared to HKD 1,026,496,000 for the same period in 2018[9]. - The net profit for the period was HKD 41,081,000, which is a significant increase of 45.4% from HKD 28,217,000 in the previous year[9]. - Basic and diluted earnings per share increased to HKD 2.94, up from HKD 2.05, reflecting a growth of 43.9%[10]. - Total comprehensive income for the period amounted to HKD 34,436,000, compared to HKD 8,482,000 in the same period last year, indicating a substantial increase[10]. - The company reported a total comprehensive income of HKD 34,436 for the six months ended June 30, 2019, compared to HKD 32,001 for the same period in 2018, representing an increase of approximately 7.63%[14]. - The net profit rose by 45.59% to HKD 41,081,000, compared to HKD 28,217,000 in the same period last year[126]. Assets and Liabilities - The company's non-current assets were valued at HKD 1,554,342,000 as of June 30, 2019, a decrease from HKD 1,601,129,000 at the end of 2018[11]. - Current assets increased to HKD 3,482,533,000 from HKD 2,737,537,000, showing a growth of 27.2%[11]. - The total assets as of June 30, 2019, amounted to HKD 5,036,875,000, up from HKD 4,361,326,000 as of June 30, 2018, reflecting a growth of about 15.5%[68]. - The total liabilities were HKD 4,143,114,000, compared to HKD 3,478,131,000 in the previous year, which is an increase of approximately 19.1%[66]. - As of June 30, 2019, the total assets minus current liabilities amounted to HKD 1,580,443, an increase from HKD 1,411,132 as of December 31, 2018, representing a growth of approximately 11.97%[12]. Cash Flow and Financing - The net cash outflow from operating activities for the six months ended June 30, 2019, was HKD (102,546), a significant improvement compared to HKD (280,667) for the same period in 2018[15]. - The net cash inflow from financing activities for the six months ended June 30, 2019, was HKD 109,918, a decrease from HKD 538,843 in the same period of 2018[15]. - The company's cash and cash equivalents decreased to HKD 397,291 as of June 30, 2019, down from HKD 446,173 as of June 30, 2018, indicating a decline of approximately 10.95%[15]. - The cash outflow from financing activities for the six months ended June 30, 2019, was HKD 113,079,000[53]. - The outstanding bank and other borrowings amounted to HKD 2,206,829,000 as of June 30, 2019, compared to HKD 1,676,470,000 at the end of 2018[133]. Business Segments and Operations - The company engaged in various business segments, including engineering, procurement, and construction (EPC) services related to photovoltaic power plants, indicating a focus on renewable energy[17]. - The EPC and consulting segment recorded external sales of HKD 843,339,000, an increase of 9.71% from HKD 768,717,000 in the previous year[107]. - The manufacturing segment reported external sales of HKD 94,177,000, a decrease from HKD 200,003,000 in 2018, resulting in a segment loss of HKD 7,964,000[113]. - The company operates solar power stations with a total installed capacity of 163.38 MW, generating external sales of HKD 86,715,000, up from HKD 45,708,000 in 2018[114]. - The company plans to explore opportunities in other renewable energy sectors, such as wind power, to diversify its portfolio[107]. Corporate Governance and Shareholding - China Nuclear Technology Group holds approximately 30.46% of the issued shares and remains the largest single shareholder of the company[150]. - The company has committed to maintaining a direct or indirect equity stake of no less than 30% by China Nuclear Group as a condition of the financing agreement[149]. - The company has adopted the corporate governance code principles and complied with all applicable provisions during the reporting period, except for a specific deviation[155]. - The Audit Committee, consisting of four independent non-executive directors, has been established to review and supervise the financial reporting process[164]. Employee and Cost Management - Employee costs totaled HKD 18,601,000, slightly down from HKD 19,555,000 in the previous year, indicating a reduction in overall employee expenses[71]. - The total number of employees as of June 30, 2019, was 390, down from 406 as of December 31, 2018[154]. - Employee costs, including directors' remuneration, amounted to HKD 18,601,000 for the six months ended June 30, 2019, compared to HKD 53,833,000 for the year ended December 31, 2018[154].

Financial Performance - The company recorded a total revenue increase of approximately 14.9% to HKD 2,256,268,000 in 2018, compared to HKD 1,963,381,000 in 2017[11] - Profit decreased by about 21.6% to HKD 94,415,000 in 2018, down from HKD 120,402,000 in 2017, with basic earnings per share at HKD 0.0693[11] - Operating expenses rose by approximately 12.3% to HKD 2,009,971,000, driven by higher sales costs and other operational expenditures[11] - Financial costs surged by about 172.6% to HKD 62,244,000, compared to HKD 22,832,000 in 2017[11] - The profit for the year was HKD 94,415,000, a decrease of about 21.6% from HKD 120,402,000 in 2017, primarily due to an increase in corporate tax rate from 15% to 25%[23] - The company's net profit margin decreased to 4.2% in 2018 from 6.1% in 2017[42] - The net profit margin for the year ended December 31, 2018, was 4%, a decrease from 6% in 2017[79] - The return on assets for 2018 was 2%, down from 3% in 2017[79] Revenue Segments - The engineering, procurement, and construction segment achieved a growth of approximately 9.8% in segment performance, despite external uncertainties[14] - The company’s revenue from its component factory in Xuzhou contributed approximately 16.7% to total revenue[14] - The power generation business saw significant growth, with external customer sales and segment performance increasing by approximately 129.1% and 89.1%, respectively[14] - The EPC and consulting segment recorded a performance of HKD 166,307,000, an increase of approximately 9.8% compared to HKD 151,524,000 in 2017, despite a decline in sales to external customers by about 7.9% to HKD 1,731,036,000[24] - The solar power generation segment contributed HKD 119,206,000 in revenue, representing a year-on-year growth of approximately 129.1%, with segment performance increasing by about 89.1% to HKD 58,001,000[28] - Revenue from solar power generation increased by approximately 129.1% to HKD 119,206,000, up from HKD 52,037,000 in 2017[39] Operational Challenges - The company faced challenges in the solar photovoltaic industry due to policy changes, leading to the suspension or delay of several solar projects[13] - The company's net profit margin decreased due to sudden policy changes in the solar photovoltaic industry by the Chinese government[76] Strategic Plans - The company aims to expand its market share in solar energy and diversify into other renewable energy sectors, including thermal and wind energy[16] - The company plans to continue exploring opportunities to enhance profitability and control operating costs amid a challenging business environment[23] - The company plans to explore investment opportunities in other renewable energy sectors both domestically and internationally to ensure sustainable development[35] - The company aims to enhance market competitiveness through precise management and risk reduction measures[35] Financial Position - Total assets as of December 31, 2018, were HKD 4,338,666,000, a slight increase of 0.4% from HKD 4,322,308,000 in 2017[56] - Current liabilities increased by approximately 1.5% to HKD 2,927,534,000 as of December 31, 2018, compared to HKD 2,883,447,000 in 2017[56] - Total liabilities amounted to HKD 3,456,997,000 as of December 31, 2018, reflecting a 0.3% increase from HKD 3,447,595,000 in 2017[56] - Net assets attributable to equity holders were HKD 866,872,000 as of December 31, 2018, an increase of 0.5% from HKD 862,969,000 in 2017[57] - The group's total borrowings as of December 31, 2018, were HKD 1,676,470,000, an increase from HKD 1,032,105,000 in 2017[59] - The leverage ratio was 2.09 as of December 31, 2018, compared to 1.54 in 2017[62] Corporate Governance - The board consists of eight executive directors and four independent non-executive directors, ensuring a balance of expertise and experience to meet the company's business needs[160] - The company emphasizes board diversity, considering factors such as gender, age, cultural background, and professional experience to enhance decision-making[161] - The board is responsible for setting overall strategy, monitoring operational and financial performance, and making significant decisions for the company[162] - Independent non-executive directors have confirmed their independence according to listing rules, ensuring unbiased oversight[165] - The company has implemented a continuous professional development program for directors, focusing on their roles and responsibilities as listed company directors[170] Employee and Operational Metrics - Employee costs rose by approximately 38.0% to HKD 53,833,000, compared to HKD 39,002,000 in 2017[45] - The total number of employees as of December 31, 2018, was 406, an increase from 274 in 2017[137] - The company has established appropriate insurance for directors and senior officers to mitigate risks arising from business operations[171] Shareholder Information - Major shareholders include China Nuclear Engineering with a 30.46% stake, holding 400,000,000 shares as of December 31, 2018[112] - The largest customer accounted for 20% of total revenue in both 2018 and 2017[87] - The combined revenue from the top five customers was 45% in 2018, down from 67% in 2017[87] Risk Management - The company identified several areas for improvement in its risk management and internal control systems, which will continue to be enhanced[193] - The board of directors is responsible for maintaining effective risk management and internal control systems to manage risks associated with achieving business objectives[193] - The company has implemented appropriate measures to manage identified risks as part of its ongoing risk management efforts[193]