Financial Performance - Revenue for the six months ended June 30, 2023, was HK$909,811,000, a decrease of 25.7% compared to HK$1,224,210,000 for the same period in 2022[12] - Gross profit increased slightly to HK$196,506,000, up 1.1% from HK$193,433,000 year-on-year[12] - Profit for the period attributable to owners of the Company was HK$60,919,000, representing a 35.1% increase from HK$45,100,000 in the previous year[16] - The total comprehensive income for the period was a loss of HK$23,352,000, compared to a loss of HK$17,593,000 in the same period last year[14] - Earnings per share for the period was 8 HK cents, compared to 3.29 HK cents in the previous year[16] - Other income and gains decreased to HK$25,646,000 from HK$28,911,000 in the previous year[12] - The company reported a profit for the period of HK$60,919,000, contributing to retained earnings of HK$1,100,296,000 as of June 30, 2023[22] - The company reported a profit for the period of HK$47,250,000, compared to HK$47,250,000 for the same period in 2022, indicating no change in net profit[57] Expenses and Costs - Administrative expenses decreased to HK$60,171,000, down 20.4% from HK$75,656,000 in the previous year[12] - Finance costs increased to HK$89,434,000, up 12.3% from HK$79,642,000 year-on-year[12] - Research and development expenses amounted to HK$6,782,000, down from HK$16,286,000 in the previous year, indicating a decrease of approximately 58.3%[65] - Interest on bank and other borrowings rose to HK$86,465,000 from HK$79,125,000, marking an increase of approximately 9.3%[61] - Interest on lease liabilities with related parties increased to HK$70,000 for the six months ended June 30, 2023, compared to HK$18,000 in the same period of 2022[131] Assets and Liabilities - As of June 30, 2023, total assets less current liabilities increased to HK$4,596,005,000 from HK$4,252,498,000 as of December 31, 2022, representing a growth of approximately 8.1%[20] - Net current assets rose to HK$932,327,000, up from HK$775,039,000, indicating an increase of about 20.3%[20] - Non-current assets totaled HK$3,663,678,000, compared to HK$3,477,459,000 at the end of 2022, reflecting a growth of approximately 5.3%[18] - Total equity decreased slightly to HK$1,664,349,000 from HK$1,693,430,000, a decline of approximately 1.7%[20] - Current liabilities decreased to HK$4,912,011,000 from HK$5,166,417,000, a reduction of about 4.9%[18] - The total liabilities of the Group were reported at HK$7,843,667,000, with segment liabilities for EPC and consultancy at HK$3,642,812,000[55] Cash Flow - For the six months ended June 30, 2023, the net cash outflows from operating activities were HK$231,474,000, compared to inflows of HK$270,029,000 in the same period of 2022[25] - The net cash inflows from investing activities were HK$355,885,000, a significant improvement from net outflows of HK$591,900,000 in the previous year[25] - The net cash inflows from financing activities increased to HK$684,456,000, up from HK$503,943,000 in the prior year[25] - The total cash and cash equivalents at the end of the period reached HK$1,749,712,000, compared to HK$920,527,000 at the end of June 2022, representing an increase of approximately 90%[25] - The effect of foreign exchange rate changes resulted in a decrease of HK$63,032,000 in cash and cash equivalents during the period[25] Segment Performance - For the six months ended June 30, 2023, the total segment revenue from external customers was HK$909,811,000, with reportable segment revenue amounting to HK$927,305,000[54] - The segment results showed a profit of HK$55,193,000 before income tax expense, with total assets reaching HK$9,508,016,000[55] - The EPC and consulting segment's revenue from external customers decreased by approximately 37.2% to HK$612,210,000, primarily due to strategic shifts towards self-built projects and reduced business scale in municipal EPC due to competitive pressures[163] - The Group's power generation business revenue increased by approximately 19.1% to HK$283,042,000, with segment profit rising by approximately 11.4% to HK$148,168,000[177] - The financing business recorded segment revenue from external customers of HK$14,559,000, representing an increase of approximately 31.8%, with segment profit of HK$1,330,000 compared to a loss of HK$40,000 in the previous year[180] Strategic Initiatives - The company plans to enhance technological innovation and industrial competitiveness in renewable energy, aligning with national goals for carbon neutrality[139] - The company aims to accelerate the construction of renewable energy projects, including wind power and photovoltaic bases, as part of its strategic initiatives[139] - The Group is focusing on the Greater Bay Area and the new energy industry, particularly in supporting the construction of photovoltaic power stations and energy storage[182] - CNEC Financial Leasing proposed a development strategy of "one core, two wings and three drives" to mitigate systematic risks and promote differentiated development[185] Environmental and Compliance - The Group is committed to minimizing environmental pollution while actively promoting green energy[189] - The Group did not violate any significant laws and regulations related to emissions and waste generation during the first half of 2023[195] - CNI (Nanjing) obtained ISO14001 and GB24001-2016 environmental management system certifications[190] - The Group has established a quality, environmental, and occupational health and safety management system in accordance with relevant standards[196]

B_table indent_4.5 mm N_table indent_4 mm 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之內容概不負責， 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之任何損失承擔任何責任。 CHINA NUCLEAR ENERGY TECHNOLOGY CORPORATION LIMITED 中國核能科技集團有限公司 （於百慕達註冊成立之有限公司） （股份代號：611） 截至二零二三年六月三十日止六個月之 中期業績公告 財務概要 截至六月三十日止六個月 二零二三年 二零二二年 變動 （未經審核） （未經審核） 港幣千元 港幣千元 % 收益 909,811 1,224,210 (25.7) ...

Renewable Energy Development - In 2022, the Group achieved on-grid power generation of 193MW through independent investment and mergers and acquisitions, including an 80MW agricultural and photovoltaic complementary project in Yunnan[18]. - The Group increased the reserve of photovoltaic and wind power projects by 3,000MW in regions such as Yunnan and Guangdong, enhancing its renewable energy capacity[18]. - The Group obtained approval for a 200MW/400MWh independent energy storage power station project in Zhenkang, Yunnan, marking a significant advancement in its energy storage business[18]. - The Group focused on the investment, construction, and operation of new energy power stations, increasing the proportion of investments in photovoltaic and wind power stations[12]. - The Group's efforts in renewable energy are aligned with the global shift towards low-carbon energy sources, responding to the increasing global electricity demand and climate change challenges[17]. - The Group's photovoltaic and wind power projects received high recognition from local authorities, indicating strong governmental support for its initiatives[18]. - The Group's strategic focus on renewable energy is expected to contribute to its long-term growth and sustainability in the energy sector[17]. - The Group completed the construction of several photovoltaic projects, including an 80 MW project in Yunnan and a 60 MWh energy storage project in Inner Mongolia, enhancing its experience in energy storage[65]. - The Group plans to continue increasing investment and development efforts in photovoltaic and wind power projects during the "14th Five-Year Plan" period[146]. - The Company aims to actively cultivate the energy storage and hydrogen energy markets to seek new economic growth points[152]. Financial Performance - The Group's revenue for the year ended December 31, 2022, decreased by approximately 18.0% to HK$2,138,482,000, while profit attributable to owners increased by approximately 2.7% to HK$92,243,000[58]. - Basic earnings per share decreased by approximately 18.9% to HK5.55 cents from HK6.84 cents in the previous year[61]. - Revenue from the EPC and consultancy segment decreased by approximately 22.6% to HK$1,637,410,000, primarily due to a focus on internal power station development[63]. - The Group's revenue from the power generation segment grew by approximately 9.7% year-on-year, contributing HK$470,510,000 to the Group's total revenue[83][86]. - Profit for the year was HK$98,354,000, a decrease of approximately 6.9% from HK$105,674,000 in 2021, attributed to increased financial expenses and income tax[167]. - The net profit margin increased to 4.6% from 4.1% in 2021, with profit attributable to owners rising by approximately 2.7% to HK$92,243,000[168]. - Other income and gains increased to HK$45,622,000 from HK$31,197,000 in 2021, mainly from interest and dividend income[171]. Operational Capacity - The Group's total operational capacity was 598MW, with an annual power generation of 822 million KWh, an increase of 234 million KWh compared to 2021[23]. - Cumulative power generation from self-invested power stations reached 822.04 million KWh, with photovoltaic power stations generating 501.58 million KWh and wind farms generating 320.46 million KWh[76][80]. - The registered installed capacity was 2,338MW, with an increase of 193MW in self-owned power plants during the year[77][81]. - The annual equivalent utilization hours of wind power were assessed at 2,276 hours, exceeding the feasibility study target by 9.84%[77][80]. Market Trends and Government Policies - In 2022, newly installed PV power generation capacity in China reached a record high of 87.41 GW, representing a year-on-year increase of 59.3%[49]. - The cumulative installed PV power generation capacity in China reached 392.61 GW by the end of December 2022, ranking first in the world for 8 consecutive years[49]. - Newly grid-connected installed wind power capacity nationwide was 37.63 GW in 2022, with a cumulative installed capacity of 365.44 GW, accounting for 14.25% of the total installed wind power capacity[50]. - The Chinese government aims for the total installed capacity of wind power and solar power to exceed 1,200 million KW by 2030[39]. - By 2025, renewable energy consumption is expected to reach approximately 1,000 million tons of standard coal, representing around 18% of primary energy consumption[43]. Internal Management and Governance - The Group's governance structure and internal control have been improved, enhancing management capabilities and financial risk control[32]. - The Group established a Legal Affairs Department and a Discipline Inspection and Supervision Office to enhance internal control management and mitigate operational risks[131]. - The Group has implemented internal control measures, including credit risk assessment of customers, to manage its financial leasing and factoring business[105][106]. Strategic Partnerships and Investments - The introduction of strategic investors was completed, with Shenzhen New Nanshan Holding becoming the largest shareholder, which is expected to enhance the Group's new energy business through resource sharing and business synergy[11]. - The Group will strengthen cooperation with its shareholder's subsidiary to promote distributed photovoltaic projects[153]. Challenges and Future Outlook - The Group anticipates continued demand for PV installation in 2023, despite challenges from the international macro environment and fierce domestic competition[33]. - The Group's focus on ensuring the construction needs of self-invested projects remains consistent with previous years[153]. - The Group's focus on high-quality development includes optimizing development planning and improving top-level design[131].

B_table indent_4.5 mm N_table indent_4 mm 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之內容概不負責， 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之任何損失承擔任何責任。 CHINA NUCLEAR ENERGY TECHNOLOGY CORPORATION LIMITED 中國核能科技集團有限公司 （於百慕達註冊成立之有限公司） （股份代號：611） 截至二零二二年十二月三十一日止年度之 全年業績公告 財務概要 截至財政年度 二零二二年 二零二一年 變動 截至十二月三十一日止年度 港幣千元 港幣千元 來自持續經營業務之收益 2,138,482 2,586,654 -17.3% 年內溢利 98,354 105,674 -6.9% 每股基本及攤薄盈利（每股港仙） ...

Financial Performance - For the six months ended June 30, 2022, the revenue was HK$1,224,210,000, an increase of 17.3% compared to HK$1,043,304,000 for the same period in 2021[11]. - Gross profit for the same period was HK$193,433,000, representing a gross margin of 15.8%[11]. - Profit for the period from continuing operations was HK$47,250,000, up 8.7% from HK$43,653,000 in the prior year[11]. - Profit for the period attributable to owners of the Company increased to HK$45,100,000 from HK$36,213,000, representing a growth of 24.5% year-over-year[16]. - The total comprehensive income for the period was a loss of HK$17,593,000, compared to a gain of HK$55,077,000 in the previous year[13]. - Total comprehensive income for the period attributable to owners of the Company decreased to HK$(20,348,000) from HK$51,284,000, indicating a significant decline[16]. - The company reported other income and gains of HK$28,911,000 for the six months ended June 30, 2022[11]. - The profit for the period was HK$47,250,000, after accounting for an income tax expense of HK$11,478,000[65]. - The income tax expense for the six months ended June 30, 2022, was HK$11,478,000, a decrease from HK$12,205,000 for the same period in 2021, reflecting a reduction of approximately 5.95%[106]. - The effective tax rate for Hong Kong profits was maintained at 16.5%[102]. Assets and Liabilities - Net current assets rose to HK$1,096,890,000, up from HK$612,540,000, reflecting an increase of 79.0%[21]. - Total assets less current liabilities increased to HK$4,154,348,000 from HK$3,277,227,000, showing a growth of 26.7%[21]. - Non-current assets, including property, plant, and equipment, increased to HK$2,838,243,000 from HK$2,298,730,000, a rise of 23.5%[18]. - Total assets amounted to HK$9,385,012,000[74]. - Total liabilities were reported at HK$7,655,996,000[75]. - Current liabilities decreased to HK$5,230,664,000 from HK$4,706,360,000, indicating a reduction of 11.1%[21]. - As of June 30, 2022, the total liabilities amounted to HK$4,714,994, an increase from HK$3,611,570 as of December 31, 2021, representing a growth of approximately 30.6%[142]. - The carrying amounts of bank and other borrowings were denominated in RMB, amounting to HK$4,202,454,000 as of June 30, 2022, compared to HK$2,970,528,000 on December 31, 2021[138]. Cash Flow - For the six months ended June 30, 2022, the net cash inflows from operating activities were HK$270,029,000, compared to HK$117,634,000 for the same period in 2021, representing an increase of 129%[32]. - The net cash outflows from investing activities were HK$591,900,000, a significant decrease from the inflow of HK$339,000 in the previous year[32]. - The net cash inflows from financing activities amounted to HK$503,943,000, up from HK$108,569,000 in the prior year, indicating a growth of 364%[32]. - As of June 30, 2022, cash and cash equivalents increased to HK$920,527,000 from HK$596,977,000 at the end of June 2021, reflecting a growth of 54%[32]. Share Capital and Equity - The issued share capital at the end of the period increased to 1,852,038,000 shares from 1,313,095,000 shares at the beginning of the period, reflecting a growth of approximately 40.9%[109]. - Total equity attributable to owners of the Company increased to HK$1,729,045,000 from HK$1,277,657,000, reflecting a growth of 35.2%[21]. - The company transferred HK$1,527,293,000 to retained earnings as part of its financial restructuring during the annual general meeting held on May 25, 2022[27]. - No dividend has been declared or proposed for the six months ended June 30, 2022, consistent with the same period in 2021 where no dividend was declared[109]. Operational Highlights - The company is focusing on expanding its market presence and enhancing its technological capabilities in the nuclear energy sector[8]. - The board of directors has emphasized the importance of strategic partnerships and potential acquisitions to drive future growth[8]. - The company is engaged in engineering, procurement, and construction (EPC) services, focusing on photovoltaic power plants and general construction services[35]. - The Group has four reportable segments, with each managed separately due to different products and services offered[56]. - The Group's segment results included a loss of HK$8,511,000 from the EPC and consultancy segment[65]. - The EPC segment experienced a loss of HK$8,511,000, an increase of approximately 121.6% compared to a loss of HK$3,841,000 in the prior year, attributed to rising staff costs and operating expenses[199][200]. - The company is facing challenges due to land resource shortages and regional electricity consumption imbalances, leading to increased competition in the wind power and photovoltaic development market[194][196]. - The company aims to expedite market expansion and ensure timely completion of grid connection and construction projects despite external pressures[194]. Market and Industry Context - As of the end of June 2022, China's cumulative installed PV power generation capacity reached 336.77 million kW, with newly installed capacity in the first half of 2022 amounting to 30.88 million kW, representing a year-on-year increase of 17.87 million kW[185]. - In June 2022, the Ministry of Finance stipulated that priority payments for renewable energy projects would be made until the end of 2022, ensuring full payment for specific photovoltaic projects[184]. - The National Development and Reform Commission and the National Energy Administration of the PRC issued plans to promote the development of wind and solar power, aiming for these sources to account for about 12% of total electricity consumption in society by 2022[180]. - The ongoing COVID-19 pandemic has complicated the global macroeconomic environment, yet the company has maintained stable economic conditions through effective internal management[190][192]. - The Group's management discussed the acceleration of new energy development in 2022, focusing on integrating new energy with rural revitalization and industrial applications[181]. Accounting and Reporting - The Group's accounting policies remain consistent with those described in the annual financial statements for the year ended December 31, 2021, with no material impact from new HKFRSs adopted[42]. - The presentation of the consolidated statement of profit or loss and other comprehensive income was changed from by nature to by function, aligning with prevailing industry practices[173]. - The Group did not adopt any new accounting standards that had a significant impact on its accounting policies for the fiscal year ending December 31, 2022[44].

Renewable Energy Development - The Group's photovoltaic and wind power project reserves increased by 800 MW, supporting carbon peaking and carbon neutrality goals[9] - The demand for renewable energy in key sectors such as electricity and heating has increased due to global carbon reduction goals[6] - The Group is focusing on new energy business development, particularly in wind power and photovoltaic investment, with energy storage and solar thermal as important segments[27] - The Group aims to implement national strategies for developing renewable energy in an orderly manner[9] - The Group is actively developing energy storage, hydrogen energy, and 5G business, preparing for involvement in green certification and carbon trading markets[15] - The Group is committed to developing new energy businesses, focusing on wind power and photovoltaic investments, with energy storage and solar thermal as important sectors[103] Financial Performance - For the year ended 31 December 2021, revenue increased by approximately 20.1% year-on-year to HK$2,607,411,000, while earnings attributable to owners of the Group amounted to HK$89,784,000, representing an increase of approximately 57.3%[52] - The Group's revenue increased by approximately 20.1% from HK$2,171,194,000 for the year ended 31 December 2020 to HK$2,607,411,000 for the year ended 31 December 2021[122] - Profit attributable to owners of the Company amounted to HK$89,784,000 for the year ended 31 December 2021, representing a year-on-year increase of approximately 57.3%[122] - Basic earnings per share for the year ended 31 December 2021 was HK6.84 cents compared to HK4.35 cents for the year ended 31 December 2020[122] - The Group's net profit margin increased to 4.1% in 2021, up from 3.2% in 2020[142] - Profit for the year ended 31 December 2021 amounted to HK$105,674,000, representing an increase of approximately 50.2% from HK$70,368,000 in 2020[138] Operational Efficiency - The Group's production and operation have steadily improved, surpassing pre-pandemic levels[6] - The annual e-procurement rate reached 93% and the public procurement rate was 100%, indicating strong operational efficiency in procurement management[20] - The Group completed the adjustment of its organizational structure and implemented lean management measures to enhance operational efficiency[20] - An intelligent centralized control platform has been implemented across all power plants to enhance real-time monitoring and management, improving operational efficiency[90] - The Group's weighted average utilization hours of invested photovoltaic plants was 1,180 hours, an increase of 7 hours compared to the previous year[63] Social Responsibility - The Group's poverty alleviation projects have lifted 3,441 registered poverty-stricken households out of poverty, demonstrating its commitment to social responsibility[14] - The Group's photovoltaic power station in Jianchuan County generated a total of 34.87 million kWh, exceeding the planned generation by 5.62 million kWh, benefiting 1,133 registered poverty-stricken households[14] - The expected annual income for poverty-stricken villages from the photovoltaic power station project is RMB 260,000[14] Market Position and Strategy - The Group has been ranked among the top EPC rankings of Chinese photovoltaic brands for six consecutive years[8] - The Group signed an investment cooperation framework agreement with the People's Government of Haixi Mongolian and Tibetan Autonomous Prefecture to develop non-fossil energy[9] - The Group aims to reduce reliance on renewable energy subsidies while improving asset quality to achieve positive growth[51] - The Group will explore and develop 4-5 enterprises for horizontal cooperation to achieve effective resource complementarity in bidding, construction, and service[112] Research and Development - The Group has strengthened R&D efforts, increasing independent scientific and technological input and R&D expenses, and introduced the DJI UAV aerial survey system[15] - The Group was granted 8 patents and launched 5 new technology research and development projects during the year[62] Financial Management - The Group's financial risk control has been improved through strict project management before investment and after lending[20] - The Group's liquidity and financing requirements are reviewed regularly to ensure they meet funding needs[161] - The Group's debt-to-equity ratio was 0.84 as of 31 December 2021, down by 1% compared to the previous year[157] Industry Trends - The photovoltaic industry is projected to have an average annual capacity of 70 to 90GW during the 14th Five-Year Plan, at least double the previous period[107] - By 2030, China's cumulative installed capacity of wind power is expected to reach 800GW, significantly up from the current 328GW, driven by the "3060 Target"[109] - The total installed solar capacity in China is expected to increase from 253.4GW at the end of 2020 to 690.3GW in 2030, accounting for 42% of the total additional solar capacity globally[110]

Financial Performance - For the six months ended June 30, 2021, the revenue was HK$1,043,304,000, an increase from HK$966,788,000 for the same period in 2020, representing a growth of approximately 7.9%[11] - The profit for the period was HK$39,770,000, compared to HK$32,914,000 in the previous year, indicating a year-on-year increase of about 20.5%[11] - The total comprehensive income for the period was HK$55,077,000, significantly higher than HK$6,811,000 for the same period in 2020[14] - Basic and diluted earnings per share increased to 2.76 HK cents, up from 2.16 HK cents in the prior year, reflecting a growth of approximately 27.8%[14] - The total comprehensive income attributable to owners of the company was HK$51,284,000, compared to HK$2,415,000 in the same period last year[14] - The Group's consolidated revenue for the six months ended 30 June 2021 was HK$1,043,304,000, representing an increase of approximately 8% compared to HK$966,788,000 for the same period last year[176] - Profit for the period increased by approximately 21% to HK$39,770,000, up from HK$32,914,000 for the same period last year, primarily due to the operation of the wind power project in Suining County, Jiangsu Province[176] Assets and Liabilities - As of June 30, 2021, total assets amounted to HK$4,700,402,000, an increase from HK$4,402,151,000 as of December 31, 2020, representing a growth of approximately 6.8%[17] - The company’s total liabilities decreased to HK$4,403,492,000 from HK$4,258,534,000, reflecting a decrease of approximately 3.4%[17] - The company’s non-current liabilities decreased to HK$1,862,544,000 from HK$1,887,213,000, showing a reduction of approximately 1.3%[20] - Total equity increased to HK$1,181,902,000 from HK$1,126,825,000, marking an increase of about 4.9%[20] - The Group reported total liabilities of HK$5,247,284,000 as of June 30, 2021, consistent with the previous year[72] Cash Flow - The company reported net cash inflows from operating activities of HK$117,634,000, a recovery from a net outflow of HK$256,494,000 in the same period last year[27] - Cash and cash equivalents at the end of the period were HK$596,977,000, up from HK$583,026,000, indicating a growth of approximately 2.5%[27] - The Group reported a net increase in cash and cash equivalents of HK$226,542,000, compared to an increase of HK$124,679,000 in the previous year[27] Segment Performance - The Power generation segment reported a profit of HK$119,870, while the Manufacturing and trading segment incurred a loss of HK$3,888[62] - The EPC and consultancy and general construction segment recorded revenue of HK$816,476,000, an increase of approximately 7% from HK$762,408,000 in the previous year, but incurred a segment loss of HK$3,841,000 compared to a profit of HK$56,574,000 in the prior year[179] - The power generation segment recorded external revenue of HK$212,007,000 for the first half of 2021, a 137% increase from HK$89,293,000 in 2020, and a segment profit of HK$119,870,000, up 213% from HK$38,338,000 in 2020[187] - The Group's finance leasing business achieved segment revenue of HK$14,821,000, an 86% increase from HK$7,956,000 in 2020, while segment loss decreased by approximately 77% to HK$3,438,000 from HK$15,058,000[194] Costs and Expenses - The company reported finance costs of HK$67,435,000, which is an increase from HK$38,707,000 in the previous year[11] - Staff costs increased to HK$23,110,000 for the six months ended June 30, 2021, from HK$19,373,000 in the same period of 2020, reflecting a rise of about 19.0%[77] - Depreciation of property, plant, and equipment rose significantly to HK$76,760,000 in the first half of 2021, compared to HK$37,310,000 in the same period of 2020, indicating an increase of approximately 105.0%[79] - The Group's income tax expense for the six months ended June 30, 2021, was HK$12,205,000, up from HK$8,098,000 in the same period of 2020, marking a rise of approximately 50.0%[87] Business Operations - The company engaged in engineering, procurement, and construction (EPC) services related to photovoltaic power plants, indicating a focus on renewable energy projects[30] - The Group is actively studying the feasibility of decentralized power generation with energy storage facilities to enhance flexibility and stability in power supply[188] - The Group's safety policy emphasizes "safety first, prevention as principle," with comprehensive management measures in place to ensure production safety[199] Market and Industry - The Group's revenue growth was impacted by the COVID-19 pandemic, which affected project completion rates in the previous year[179] - The solar power plants and wind power stations are primarily located in the PRC, with a significant portion of revenue contributed by the State Grid Corporation of China, indicating minimal credit risk[192] - The Group is focusing on diversifying risks and enhancing project quality by developing external non-related projects in the new energy industry, new infrastructure, and healthcare sectors[197]

Financial Performance - Overall revenue decreased by approximately 24.9% to HK$2,171,194,000 for the year ended 31 December 2020, compared to HK$2,892,578,000 in 2019[34]. - The Group's profit for the year ended 31 December 2020 was HK$70,368,000, representing a decrease of approximately 32.4% compared to HK$104,021,000 in 2019[34]. - Profit attributable to owners of the Company amounted to HK$57,064,000 for 2020, representing a year-on-year decrease of 41.1%[94]. - Basic and diluted earnings per share for 2020 was HK4.35 cents, down from HK7.37 cents in 2019[94]. - The net profit margin decreased to 3.2% from 3.6% in 2019[122]. - Other income and gains rose by 131.8% from HK$10,904,000 in 2019 to HK$25,275,000 in 2020[102]. - The Group's construction costs increased by 29.9% to HK$962,849,000 in 2020 compared to HK$741,299,000 in 2019[104]. - Cost of sales decreased by 49.1% to HK$913,471,000, while construction costs increased by 29.9% to HK$962,849,000[127]. - Finance costs decreased by approximately 19.9% to HK$42,601,000, mainly due to the capitalization of interest expenses of HK$28,514,000 to wind power projects[135]. - Income tax expense decreased by approximately 20.7% to HK$19,443,000, with an effective tax rate of 21.6% for the year ended 31 December 2020[136]. Operational Efficiency - The Group achieved a year-on-year decrease of 20% in annual financial expenses, while the EBITDA to financial expense ratio increased by 8%[21]. - The Group improved operational efficiency and anti-risk capability by consolidating the management and control system[15]. - The cash flow of operating activities has improved significantly due to the implementation of zero-storage management[21]. - The Group's cash flow from operating activities showed significant improvement due to strict management of working capital and zero inventory practices[23]. - The Group has established a comprehensive reporting and analysis mechanism to flexibly resolve issues and prevent potential problems in construction projects[65]. - The Group implements a payment collection accountability system to minimize accounts receivable aging balance, linking performance and remuneration of responsible persons[75]. - Each power station implements a trinity management system for intelligent operation and maintenance, improving efficiency and ensuring standardization[76]. - The Group has achieved a goal of zero production safety accidents through rigorous safety management and inspections[71]. Market and Industry Trends - The new energy market was volatile, with demand gradually recovering in the second half of the year due to the impact of the COVID-19 pandemic and supply fluctuations[15]. - The Group aims to capitalize on investment opportunities in the clean energy sector, aligning with China's carbon neutrality goals by 2060[26]. - The Group plans to further tap into the market of energy storage and 5G projects, investing in scientific research for new profit drivers[17]. - The Group is actively monitoring the solar power generation industry trends in China[194]. - Continuous observation of competitors and innovative products is a priority for the Group[194]. - The Group acknowledges the importance of adapting to local and global market changes[199]. Project Development and Achievements - The Group successfully completed several projects, including a 100 MW solar thermal project in Inner Mongolia and an 85 MW wind power project in Suining, which were connected to the grid on schedule[43]. - The Group obtained 10 authorized patents and launched 3 new technology research and development projects in 2020[42]. - The Group's energy storage technology research progressed with a feasibility study completed for the Suining wind power project, setting the stage for future developments in 2021[56]. - The Group completed the feasibility study for the Suining wind power project’s supporting energy storage, laying the groundwork for energy storage project development in 2021[59]. - The Group actively diversified into wind power and other renewable energy segments, enhancing its business portfolio[46][48]. Financial Position and Assets - Total assets increased by approximately 27.9% to HK$7,272,572,000, driven by acquisitions of photovoltaic power stations and wind power project developments[156]. - Total liabilities increased by approximately 29.4% to HK$6,145,747,000, with non-current liabilities rising by approximately 139.8% to HK$1,887,213,000[157]. - Total equity attributable to owners of the Company increased by 19.2% to HK$1,106,844,000, primarily due to profit generation and foreign exchange differences[158]. - Current assets increased by approximately 4.7% to HK$4,402,151,000, while non-current assets surged by approximately 93.9% to HK$2,870,421,000[156]. - The Group's gearing ratio as of December 31, 2020, was 3.11, compared to 2.77 in 2019, calculated based on total debt over total equity[167]. Compliance and Risk Management - The Group has strengthened compliance management and internal audits to enhance corporate governance and risk resistance capabilities[24]. - There was no evidence of non-compliance with relevant laws and regulations that significantly impact the Group during the year ended December 31, 2020[77]. - The Group is preparing for potential risks arising from changes in regulations that could significantly impact its operations[198]. - Proactive measures are being taken to address possible adverse effects on the Group's business performance and development prospects[196]. - The Group will continue to monitor foreign exchange risks and implement necessary hedging arrangements if needed[174]. Future Strategies - The Group plans to expand its general contracting scope to include solar thermal power generation, wind power generation, and energy storage[88]. - The Group aims to deepen industry-university-research cooperation to enhance research on photovoltaic and wind power technologies[89]. - The Group will actively explore investment opportunities in new energy sectors both domestically and internationally[90]. - The Group's strategy includes differentiated competitive approaches to leverage growth in the Guangdong-Hong Kong-Macao Greater Bay Area and Hainan Free Trade Port[93].

CORPORATE INFORMATION This section details the company's corporate governance and administrative structure, including board members, committee composition, principal bankers, auditors, share registrars, and registered office - This section details the company's corporate governance and administrative structure, including board members, committee composition, principal bankers, auditors, share registrars, and registered office[4](index=4&type=chunk)[7](index=7&type=chunk)[16](index=16&type=chunk) CONDENSED CONSOLIDATED FINANCIAL STATEMENTS [CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20PROFIT%20OR%20LOSS%20AND%20OTHER%20COMPREHENSIVE%20INCOME) For the six months ended June 30, 2020, the Group's total revenue was **HK$967 million**, a 6.8% year-on-year decrease, with profit for the period at **HK$32.91 million**, down 19.9%, primarily due to slower EPC business progress and increased finance costs, resulting in basic earnings per share of **2.16 HK cents** compared to **2.94 HK cents** last year Key Profit or Loss Data for H1 2020 | Metric | H1 2020 (HK$ Thousand) | H1 2019 (HK$ Thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **Revenue** | 966,788 | 1,037,388 | -6.8% | | **Profit before income tax expense** | 41,012 | 49,335 | -16.9% | | **Profit for the period** | 32,914 | 41,081 | -19.9% | | **Profit attributable to owners of the Company** | 28,337 | 38,609 | -26.6% | | **Total comprehensive income for the period** | 6,811 | 34,436 | -80.2% | | **Basic and diluted earnings per share (HK cents)** | 2.16 | 2.94 | -26.5% | [CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20FINANCIAL%20POSITION) As of June 30, 2020, the Group's total assets increased by 8.9% to **HK$6.191 billion**, mainly due to property, plant, and equipment additions from photovoltaic power station acquisitions, while total liabilities rose 10.5% to **HK$5.247 billion** due to increased bank and other borrowings, with net assets slightly up 0.7% to **HK$944 million** Financial Position Summary | Metric | June 30, 2020 (HK$ Thousand) | December 31, 2019 (HK$ Thousand) | Period Change | | :--- | :--- | :--- | :--- | | **Non-current assets** | 1,883,478 | 1,480,259 | +27.2% | | **Current assets** | 4,307,495 | 4,206,117 | +2.4% | | **Total assets** | 6,190,973 | 5,686,376 | +8.9% | | **Current liabilities** | 4,080,846 | 3,962,554 | +3.0% | | **Non-current liabilities** | 1,166,438 | 786,944 | +48.2% | | **Total liabilities** | 5,247,284 | 4,749,498 | +10.5% | | **Net assets** | 943,689 | 936,878 | +0.7% | | **Equity attributable to owners of the Company** | 931,177 | 928,762 | +0.3% | [CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CHANGES%20IN%20EQUITY) For the six months ended June 30, 2020, equity attributable to owners of the Company slightly increased from **HK$929 million** to **HK$931 million**, with a **HK$28.34 million** profit for the period partially offset by a **HK$25.92 million** exchange difference loss from translating overseas operations, resulting in total comprehensive income of only **HK$2.415 million** Changes in Equity Attributable to Owners of the Company (H1 2020) | Item | Amount (HK$ Thousand) | | :--- | :--- | | **As at January 1, 2020** | 928,762 | | Profit for the period | 28,337 | | Other comprehensive income for the period | (25,922) | | **Total comprehensive income for the period** | 2,415 | | **As at June 30, 2020** | 931,177 | [CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS](index=10&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS) In H1 2020, the Group reported a net cash outflow from operating activities of **HK$256 million** and from investing activities of **HK$340 million**, while financing activities generated a net cash inflow of **HK$721 million**, primarily from new borrowings, resulting in cash and cash equivalents of **HK$583 million** at period-end, an increase of **HK$125 million** from the beginning of the period Cash Flow Statement Summary | Item | H1 2020 (HK$ Thousand) | H1 2019 (HK$ Thousand) | | :--- | :--- | :--- | | **Net cash outflow from operating activities** | (256,494) | (102,546) | | **Net cash outflow from investing activities** | (340,061) | (22,913) | | **Net cash inflow from financing activities** | 721,234 | 109,918 | | **Net increase in cash and cash equivalents** | 124,679 | (15,541) | | **Cash and cash equivalents at end of period** | 583,026 | 397,291 | NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS [CORPORATE INFORMATION AND PRINCIPAL ACTIVITIES](index=11&type=section&id=1.%20CORPORATE%20INFORMATION) This note outlines the company's registration details and primary business activities, which are categorized into five segments: Engineering, Procurement and Construction (EPC) and consultancy and general construction; Power Generation; Financing; Manufacturing and Trading of solar-related products; and Other corporate management, investment, and treasury services - The Group's core business revolves around renewable energy, particularly the construction (EPC), operation (power generation) of photovoltaic power stations, and related financing and product manufacturing[41](index=41&type=chunk)[43](index=43&type=chunk)[45](index=45&type=chunk) [SEGMENT REPORTING](index=18&type=section&id=4.%20SEGMENT%20REPORTING) In H1 2020, the EPC and consultancy and general construction segment remained the largest revenue source, contributing **HK$762 million** or 78.9% of total revenue, while the power generation segment generated **HK$89.29 million** and manufacturing and trading **HK$107 million**, with financing segment revenue significantly declining, and EPC and power generation being the main profit contributors H1 2020 Revenue and Results by Business Segment | Business Segment | External Sales Revenue (HK$ Thousand) | Segment Results (HK$ Thousand) | | :--- | :--- | :--- | | **EPC and Consultancy and General Construction** | 762,408 | 56,574 | | **Power Generation** | 89,293 | 38,338 | | **Financing** | 7,956 | (15,058) | | **Manufacturing and Trading** | 107,131 | (6,714) | | **All Other Segments** | - | (14,381) | [BANK AND OTHER BORROWINGS](index=35&type=section&id=16.%20BANK%20AND%20OTHER%20BORROWINGS) As of June 30, 2020, the Group's total bank and other borrowings significantly increased by 34.8% to **HK$3.35 billion** from **HK$2.485 billion** at the end of 2019, comprising **HK$2.188 billion** in current borrowings and **HK$1.162 billion** in non-current borrowings, primarily to support business expansion and project investments Composition of Bank and Other Borrowings | Item | June 30, 2020 (HK$ Thousand) | December 31, 2019 (HK$ Thousand) | | :--- | :--- | :--- | | **Current borrowings** | 2,188,405 | 1,699,801 | | **Non-current borrowings** | 1,162,088 | 784,719 | | **Total** | 3,350,493 | 2,484,520 | - Borrowings are secured by guarantees from the company's subsidiaries, finance lease receivables, trade receivables, pledged bank deposits, and shares in subsidiaries[172](index=172&type=chunk)[176](index=176&type=chunk) - All borrowings bear floating interest rates, with effective annual interest rates ranging from **3.3% to 6.7%**[176](index=176&type=chunk) [ACQUISITION OF SUBSIDIARIES](index=43&type=section&id=20.%20ACQUISITION%20OF%20SUBSIDIARIES) To expand its power generation business, the Group acquired three photovoltaic power generation companies in H1 2020: Danyang Jinyangguang Photovoltaic Power, Fuyang Hengming Solar Power, and Zhenjiang GCL New Energy, aiming to acquire quality assets and expand its power generation business scale, with the acquisitions of Fuyang and Zhenjiang companies yielding a total bargain purchase gain of approximately **HK$3.53 million** - The Group acquired three photovoltaic power station operating companies in H1 2020 for a total consideration of approximately **HK$97.07 million**, expanding its power generation asset portfolio[200](index=200&type=chunk)[201](index=201&type=chunk) - The acquisitions of Fuyang Solar Power and Zhenjiang GCL resulted in bargain purchase gains, primarily because the sellers intended to exit their investments due to their own business reasons[223](index=223&type=chunk)[234](index=234&type=chunk) MANAGEMENT DISCUSSION AND ANALYSIS [Business Review and Segment Performance](index=51&type=section&id=Business%20Review%20and%20Segment%20Performance) In H1 2020, the Group's overall revenue decreased by 6.8% to **HK$967 million**, and profit declined by 19.9% to **HK$32.91 million**, primarily due to slower EPC project progress caused by the COVID-19 pandemic and increased finance costs, though power generation and general construction engineering businesses still achieved growth - The two main reasons for the profit decline were: (i) slower EPC business progress due to the pandemic and compressed project costs and profit margins from grid parity policies; and (ii) a significant increase in finance costs due to higher average borrowings[241](index=241&type=chunk)[243](index=243&type=chunk) [EPC AND CONSULTANCY AND GENERAL CONSTRUCTION](index=52&type=section&id=EPC%20AND%20CONSULTANCY%20AND%20GENERAL%20CONSTRUCTION) As a core business, this segment's revenue decreased by 9.6% year-on-year to **HK$762 million**, and segment results declined by 8.0% to **HK$56.57 million**, primarily due to pandemic-induced delays in photovoltaic EPC projects, though strong performance in general construction engineering, with revenue up 65.4% to **HK$310 million**, partially offset the weakness in photovoltaic business EPC and Consultancy and General Construction Segment Performance | Metric | H1 2020 (HK$ Thousand) | H1 2019 (HK$ Thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **External Sales Revenue** | 762,408 | 843,339 | -9.6% | | **Segment Results** | 56,574 | 61,494 | -8.0% | - General construction engineering business, including government affordable housing and municipal projects, became a significant growth driver for this segment, with revenue increasing by **65.4%** year-on-year[248](index=248&type=chunk)[249](index=249&type=chunk) [MANUFACTURING AND TRADING](index=54&type=section&id=MANUFACTURING%20AND%20TRADING) The component factory in Peixian, Xuzhou, recorded external sales revenue of **HK$107 million**, a 14.8% year-on-year increase, but despite revenue growth, the segment still reported a loss of **HK$6.71 million** due to intense market competition leading to fewer orders, though the loss narrowed from **HK$7.96 million** in the prior year Manufacturing and Trading Segment Performance | Metric | H1 2020 (HK$ Thousand) | H1 2019 (HK$ Thousand) | | :--- | :--- | :--- | | **External Sales Revenue** | 107,131 | 94,177 | | **Segment Loss** | (6,714) | (7,964) | [POWER GENERATION](index=54&type=section&id=POWER%20GENERATION) The power generation business continued stable growth, with external sales revenue reaching **HK$89.29 million**, a 3.0% year-on-year increase, and segment results growing 4.0% to **HK$38.34 million**, primarily benefiting from contributions from acquired and operated photovoltaic power stations during the period, bringing the Group's total installed capacity owned and operated to **210.39 MW** at period-end - The Group completed the acquisitions of Fuyang Hengming and Zhenjiang GCL, two photovoltaic power generation companies, during the period, further expanding its power generation asset scale and contributing new revenue to this segment[253](index=253&type=chunk) - The Group is actively developing in the energy storage sector, having completed technical solution research for the Suining wind farm's supporting energy storage and exploring new business models for energy storage participation in power plant black starts, peak shaving, and frequency regulation[254](index=254&type=chunk)[255](index=255&type=chunk) [FINANCING](index=56&type=section&id=FINANCING) The finance lease business performed poorly, with external sales revenue decreasing by 39.5% year-on-year to **HK$7.96 million**, and segment loss widening by 47.4% to **HK$15.06 million**, primarily due to reduced interest and handling fee income and increased finance costs during the period Financing Segment Performance | Metric | H1 2020 (HK$ Thousand) | H1 2019 (HK$ Thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **External Sales Revenue** | 7,956 | 13,157 | -39.5% | | **Segment Loss** | (15,058) | (10,218) | +47.4% | [BUSINESS PROSPECT](index=58&type=section&id=BUSINESS%20PROSPECT) Looking ahead, the Group will continue to strengthen its EPC capabilities in wind, photovoltaic, and concentrated solar power projects, expand its construction engineering market with Jiangsu Province as a hub, actively participate in bidding for new energy projects, seek suitable projects in North and Northwest China, and leverage capital advantages to explore emerging industries around the Guangdong-Hong Kong-Macao Greater Bay Area and Hainan Free Trade Port, promoting supply chain finance and other synergistic businesses to create new profit growth points - Strategic priorities include: consolidating and expanding EPC business, especially general construction engineering; accelerating investment and development of new energy projects, including wind power; exploring emerging industry opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area and Hainan Free Trade Port; and developing synergistic businesses such as supply chain finance[266](index=266&type=chunk)[267](index=267&type=chunk)[270](index=270&type=chunk) [FINANCIAL REVIEW](index=60&type=section&id=FINANCIAL%20REVIEW) This section details the Group's financial performance, position, and resources, noting a decline in H1 2020 revenue and profit primarily due to EPC business impacts, while total assets and liabilities increased in line with business expansion and project acquisitions, leading to a higher gearing ratio reflecting increased debt financing for development [Financial Results](index=61&type=section&id=Financial%20Results) The Group's H1 revenue decreased by 6.8% year-on-year, and profit attributable to owners of the Company declined by 26.6%, with a 9.6% decrease in EPC business revenue being the main driver of overall revenue decline, while power generation and manufacturing revenues grew by 3.0% and 13.8% respectively, and finance costs significantly increased by 30.7% to **HK$38.71 million**, putting considerable pressure on profit - Construction costs significantly increased by **64.8%** year-on-year, while cost of inventories used decreased by **31.9%**, reflecting a shift in business structure with an increase in general construction engineering projects and a decrease in new energy EPC projects[285](index=285&type=chunk) - Finance costs significantly increased by **30.7%**, primarily due to increased bank and other borrowings to support power station investments and EPC project advance payments[287](index=287&type=chunk) [Financial Position](index=66&type=section&id=Financial%20Position) As of June 30, 2020, total assets increased to **HK$6.191 billion**, driven primarily by non-current assets (up 27.2% year-on-year), reflecting acquisitions of photovoltaic power stations, while total liabilities rose to **HK$5.247 billion**, with non-current liabilities increasing by 48.2%, mainly due to higher long-term bank borrowings - The growth in total assets and total liabilities aligns with the Group's strategy to expand its power generation business scale through acquisitions and increased borrowings[289](index=289&type=chunk) [Liquidity, Financial Resources and Gearing](index=67&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Gearing) As of June 30, 2020, the Group held cash and cash equivalents of **HK$583 million** and net current assets of **HK$227 million**, with the gearing ratio (total liabilities/total equity) increasing from 2.77 at the end of 2019 to **3.67**, reflecting higher debt levels, and the Group's borrowings are primarily at floating rates, secured by assets such as receivables and bank deposits Liquidity and Gearing Ratios | Metric | June 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | **Cash and cash equivalents (HK$ Thousand)** | 583,026 | 448,553 | | **Net current assets (HK$ Thousand)** | 226,649 | 243,563 | | **Total bank and other borrowings (HK$ Thousand)** | 3,350,493 | 2,484,520 | | **Gearing ratio** | 3.67 | 2.77 | CORPORATE GOVERNANCE AND OTHER INFORMATION [Directors' and Substantial Shareholders' Interests](index=77&type=section&id=Directors%27%20and%20Substantial%20Shareholders%27%20Interests) This section discloses the shareholdings of directors and substantial shareholders, noting that as of June 30, 2020, controlling shareholder China National Nuclear Corporation (CNNC) indirectly held **30.46%** of the company's shares through its subsidiary, and certain loan agreements require CNNC to maintain its status as the single largest shareholder with a stake of no less than **30%** - Controlling shareholder China National Nuclear Corporation (CNNC), through CNNC Investment (Hong Kong) Company Limited, holds **400 million shares** in the company, representing **30.46%** of the issued shares[348](index=348&type=chunk)[352](index=352&type=chunk) - The Group has **HK$871 million** in outstanding loans subject to specific performance obligations by the controlling shareholder, requiring CNNC to maintain its status as the single largest shareholder and a shareholding of no less than **30%**[322](index=322&type=chunk)[323](index=323&type=chunk)

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 ...