Company Overview - Chaowei Power Holdings Limited primarily engages in the manufacturing and sales of lead-acid motive batteries and lithium-ion batteries, with a focus on electric bikes and special-purpose electric vehicles[6]. - The company has a diversified product portfolio and is recognized as a leading player in the Chinese battery industry[12]. - The Group's manufacturing facilities are strategically located in high-demand regions across seven provinces in China, including Shandong and Jiangsu[7]. - The primary market includes top electric bike manufacturers, while the secondary market is supported by a nationwide distribution network covering all provinces in China[8]. - Chaowei Power Holdings Limited emphasizes advanced technology and environmentally friendly processes in its operations[12]. Financial Performance - The company's revenue for the year ended December 31, 2021, was approximately RMB 29,489 million, representing a 8.0% increase from RMB 27,305 million in 2020[23][24]. - Gross profit for the year was RMB 3,324 million, slightly up from RMB 3,297 million in the previous year, indicating a stable gross margin[23]. - Profit attributable to the owners of the company decreased to RMB 516 million, down 28.3% from RMB 720 million in 2020[23][34]. - Basic and diluted earnings per share were RMB 0.47, compared to RMB 0.65 in 2020, reflecting a decline of 27.7%[23]. - The Group's total revenue for the Year was approximately RMB29,489 million, an increase from RMB27,305 million in 2020, representing a year-on-year growth of approximately 8.0%[53]. - Gross profit for the Year was approximately RMB3,324 million, slightly up from RMB3,297 million in 2020, with a gross profit margin decrease to approximately 11.3% from 12.1%[53]. - Profit before tax decreased by approximately 26.4% to RMB784,617,000 from RMB1,065,559,000 in 2020[77]. - Profit attributable to owners of the Company was approximately RMB516 million, down from RMB720 million in 2020, indicating a decline of approximately 28.3%[53]. Market Trends and Outlook - The company continues to experience stable growth in market demand for its products[11]. - The market for electric bikes in China is expected to grow by approximately 14.9% year-on-year in 2022, with ownership exceeding 300 million units[54]. - The lead-acid motive batteries continue to dominate the market, holding approximately 90% market share due to their mature technology and cost-effectiveness[60]. - The implementation of new national standards for electric bikes is expected to create greater demand in the replacement market, boosting the overall electric bike market[60]. - The electric vehicle battery segment accounted for 54.39% of total revenue, while the electric bike battery segment contributed 17.02%[25][26]. Research and Development - The company is focused on technological innovation and aims to enhance production efficiency through R&D of new products[41][46]. - The Group's R&D expenses amounted to approximately RMB 929 million, which is about 3.2% of total revenue[72]. - The Group's lithium-ion battery sales revenue was approximately RMB 246 million, with plans to enhance product technology for better quality and efficiency[68]. - The Group was recognized as a "National Model Enterprise of Technological Innovation" and continues to invest in R&D platforms and talent acquisition[72]. Corporate Governance - The company has a strong governance structure with a mix of executive and independent non-executive directors, ensuring diverse perspectives in decision-making[121]. - The Audit Committee consists of four independent non-executive directors, ensuring oversight of financial reporting and internal controls[181]. - The Company has developed policies and practices on corporate governance, including compliance with legal and regulatory requirements[153]. - The Board comprises four executive Directors, one non-executive Director, and four independent non-executive Directors, with independent non-executive Directors accounting for more than one-third of the Board[159]. - The Company has arranged liability and reimbursement insurances for Directors and senior management[152]. Employee and Operational Insights - The total cost of employees amounted to approximately RMB 1,565,955,000, with a workforce of 13,062 employees as of December 31, 2021, down from 15,105 in 2020[86]. - The Group continues to enhance staff training and provide competitive salary packages to improve employee engagement and service quality[86]. - The Group's current ratio improved to 1.12 from 1.06 in the previous year, while the gearing ratio decreased to approximately 10.7% from 12.6%[80]. Dividend and Shareholder Information - Proposed final dividend per share is HK$0.087, down from HK$0.117 in the previous year, reflecting the company's cautious approach amid declining profits[23]. - The final dividend is expected to be paid on or around July 15, 2022, following the annual general meeting[104]. - The register of members will be closed from June 15, 2022, to June 17, 2022, for the purpose of determining shareholders' entitlement to the proposed final dividend[107]. Management Team - The Group's management team includes individuals with significant experience in both engineering and management roles, enhancing its strategic capabilities[120]. - The company has a strong leadership team with over 20 years of experience in the lead-acid battery industry, enhancing its strategic planning and investment decisions[110]. - The independent non-executive directors bring extensive experience from various sectors, contributing to strategic decision-making[129].

Financial Performance - The Group's total revenue for the period was approximately RMB 12,959 million, an increase from approximately RMB 11,109 million in the corresponding period of 2020, representing a growth of about 16.6%[14] - Gross profit for the period was approximately RMB 1,448 million, compared to RMB 1,403 million in the same period of 2020, with a gross profit margin of approximately 11.2%, down from 12.6%[14] - Profit attributable to owners of the Company was approximately RMB 300.5 million, a decrease from approximately RMB 407.2 million in the corresponding period of 2020, primarily due to losses on fair value of financial assets[14] - Basic and diluted earnings per share were RMB 0.27, down from RMB 0.37 in the same period of 2020[14] - The Group's revenue for the period was approximately RMB12,959,494,000, representing an increase of approximately 16.7% compared to RMB11,108,670,000 for the same period in 2020[64] - The Group's gross profit for the period was approximately RMB1,448,138,000, an increase of approximately 3.3% from RMB1,402,521,000 in the same period of 2020, with a gross profit margin of approximately 11.2%[67] - Profit before tax decreased by approximately 21.3% to approximately RMB421,125,000 compared to RMB534,924,000 for the same period in 2020[73] - Profit attributable to owners of the Company decreased by approximately 26.2% to approximately RMB300,520,000 compared to RMB407,152,000 for the same period in 2020[73] - The profit for the period was RMB 300,520,000, representing a significant increase compared to the previous period[192] Revenue Breakdown - Revenue from sales of lead-acid motive batteries for the period amounted to approximately RMB 11,106 million, accounting for approximately 85.7% of the Group's total revenue[37] - Revenue from sales of electric bike batteries was approximately RMB 7,313 million, representing about 56.4% of the Group's total revenue[37] - Revenue from sales of electric tricycle batteries and special-purpose electric vehicle batteries totaled approximately RMB 3,793 million, accounting for approximately 29.3% of the Group's total revenue[37] - Sales revenue from electric bicycle batteries was approximately RMB 7.313 billion, representing about 56.4% of the total revenue[39] - The Group's electric tricycle and special-purpose electric vehicle battery sales revenue was approximately RMB 3.793 billion, accounting for about 29.3% of total revenue[39] Market Trends and Demand - The demand for electric bikes continues to grow, with the PRC's annual output of electric bikes reaching approximately 30 million in 2020 and ownership exceeding 300 million[15] - The newly amended "Safety Technical Specification for Electric Bicycles" in the PRC is expected to increase replacement demand for electric bikes[15] - The electric bike sharing industry is expanding, further driving the production of electric bikes[15] - The PRC government has implemented stricter regulations for electric bicycles since the New National Standard came into effect on April 15, 2019, promoting the upgrade of electric bikes[24] - The transition periods for non-standard electric vehicles in regions like Beijing, Shanghai, and Zhejiang will expire in 2021, further stimulating demand for electric bicycles[26] - The demand for lead-acid motive batteries is expected to remain steady due to their regular replacement needs and large replacement market[24] - The implementation of new industry standards for electric bikes and batteries is anticipated to benefit sales in the sector[27] Research and Development - The Group's R&D expenditure reached approximately RMB 383 million, which is about 3.0% of total revenue[53] - R&D expenses for the period amounted to approximately RMB383,450,000, representing an increase of approximately 3.5% compared to RMB370,431,000 for the same period in 2020[68] - The Group aims to consolidate its market position through innovation and the development of high-performance battery products[13] - The Group will continue to develop new technologies, materials, products, and business models to lead industry development[62] Financial Position and Assets - As of 30 June 2021, the Group had net current assets of approximately RMB898,228,000, an increase from RMB644,490,000 as of 31 December 2020[77] - The Group's cash and bank balances were approximately RMB 1,749,113,000, down from RMB 2,552,548,000 as of December 31, 2020[78] - The net debt was approximately RMB 3,464,165,000, compared to RMB 2,414,359,000 as of December 31, 2020, indicating an increase in leverage[78] - The current ratio was approximately 1.07 as of June 30, 2021, slightly up from 1.06 as of December 31, 2020[79] - The gearing ratio (net debt/total assets) increased to approximately 16.7% from 12.6% as of December 31, 2020[80] - The total carrying amount of pledged assets at the end of the reporting period was approximately RMB 4,056,247,000, up from RMB 3,026,144,000 as of December 31, 2020[84] Shareholding Structure - The overall shareholding structure indicates a concentration of ownership among a few key individuals, which may impact corporate governance[99] - The company maintains a structure where certain economic interests are separated from voting rights, as seen in the Jolly Pride Trust Deed[100] - The report indicates that substantial shareholders have interests or short positions in shares or underlying shares of the company[108] - The financial implications of these shareholdings could affect market perception and investor confidence in the company[116] Corporate Governance - The Company has complied with all code provisions of the Corporate Governance Code throughout the reporting period, except for the separation of the roles of chairman and CEO[164] - The Board believes that the current arrangement of having the same individual serve as both chairman and CEO is beneficial for executing the Group's business strategies[165] - The Group has established an Audit Committee comprising four independent non-executive Directors, with Mr. Lee as the chairman, who has professional qualifications in accounting and finance[176] - The Audit Committee has reviewed the unaudited consolidated results for the Period and confirmed compliance with relevant accounting standards and regulations[178] Cash Flow and Investments - Net cash used in operating activities for the six months ended 30 June 2021 was RMB (651,861,000), a decrease from RMB 1,615,940,000 in the same period of 2020[194] - The total cash used in investing activities was RMB (881,774,000), a decrease from RMB (1,476,400,000) in the previous year[194] - Net cash from financing activities was RMB 726,355, compared to RMB 344,173 in the prior year, indicating a significant increase of about 111%[198] - Cash and cash equivalents at the end of the period were RMB 1,749,113, down from RMB 2,442,457 in the previous year, representing a decrease of approximately 28%[198]

Company Overview - Chaowei Power Holdings Limited primarily engages in the manufacturing and sales of lead-acid motive batteries, with a focus on electric bikes and related products[4]. - The company is recognized as a leading player in the Chinese battery industry, with a diversified product portfolio[8][9]. - The Group's manufacturing facilities are strategically located in high-demand regions across China, including Shandong, Jiangsu, and Zhejiang[4]. - The primary market includes top electric bike manufacturers in China, supported by a nationwide distribution network[4]. Financial Performance - Financial highlights for the year ended 31 December indicate significant growth in revenue and profitability, with detailed figures available in the financial summary[23]. - The company's revenue for the year ended December 31, 2020, was approximately RMB 27,305 million, representing a slight increase of 0.45% compared to RMB 27,182 million in 2019[24]. - Profit attributable to the owners of the company increased by 28.3% to approximately RMB 720 million, up from RMB 561 million in the previous year[42]. - Basic and diluted earnings per share rose to RMB 0.65, compared to RMB 0.51 in 2019, reflecting a growth of 27.5%[24]. - The Group's total revenue for the year was approximately RMB 27,305 million, representing an increase of approximately 0.5% compared to the previous year[62]. - The overall gross profit margin slightly decreased to approximately 12.1%, down from approximately 12.5% in 2019[62]. - Profit before tax increased by approximately 32.3% to RMB 1,065,559,000, up from RMB 805,486,000 in 2019[102]. - Other income and gains amounted to approximately RMB 548,606,000, an increase of approximately 114.9% from RMB 255,258,000 in 2019, primarily due to gains on the fair value of financial assets[100]. Market Trends and Outlook - Future outlook includes expanding market demand for electric vehicles and potential new product developments in lithium-ion batteries[6][5]. - The market demand for electric bikes surged due to pandemic-related measures, contributing to the company's growth during the year[47]. - The demand for electric tricycles and special-purpose electric vehicles has continued to grow, driven by the rise of e-commerce and logistics services during the Pandemic[70]. - The lead-acid battery market remains strong due to its stable performance and wide applications, particularly among low and middle-income consumers[71]. - The implementation of the "New National Standard" for electric bikes has led to increased demand for compliant models, creating a "Replacement Period" for electric bikes[64]. Research and Development - The Group has maintained a leading R&D platform, achieving breakthroughs in battery technology and production quality[61]. - The Group is committed to technological innovation, focusing on enhancing product quality and production technology for lead-acid motive batteries[49]. - R&D expenses for the year totaled approximately RMB 857 million, accounting for about 3.1% of total revenue[92][95]. - The Group has established multiple R&D platforms, including a nationally-recognized enterprise technology center and overseas R&D centers, to enhance its innovation capabilities[93]. - The Group remains optimistic about the lead-acid battery business, focusing on technological innovation for future breakthroughs in new energy[98][101]. Operational Efficiency - The Group's operational efficiency improvements led to a reduction in operating expenses, contributing to the overall profit increase[42]. - The Group aims to enhance profitability by improving operational efficiency and expanding into international markets, particularly in the electric vehicle and new energy sectors[54]. - The Group's production strategy includes strategically located plants in high-demand regions, reducing storage and logistics costs[85]. - The Group's distribution and selling expenses decreased by approximately 13.2% to RMB 718,945,000 in the Year, representing 2.6% of revenue compared to 3.0% in 2019[102]. Corporate Governance - The Company has complied with all code provisions of the Corporate Governance Code throughout the year, except for the separation of the roles of chairman and CEO[123]. - The Board comprises four executive Directors, one non-executive Director, and four independent non-executive Directors, with independent non-executive Directors accounting for more than one-third of the Board[186]. - The Company has established policies and practices on corporate governance, including compliance with legal and regulatory requirements[180]. - The attendance record of each Director at Board meetings is documented, ensuring accountability and transparency[187]. - The independent non-executive directors bring diverse expertise from different sectors, enhancing corporate governance[156]. Leadership and Management - The Group has a strong leadership team with members holding various professional qualifications and extensive industry experience[160]. - Mr. Zhou Mingming serves as both the chairman of the Board and chief executive officer, a decision the Board believes maximizes operational efficiency[170]. - The Group's management structure supports effective decision-making and strategic planning for future expansion[162]. - The Group's marketing director, Mr. Pan Xuexiang, is responsible for marketing planning and product planning since joining in 2009[163]. Employee and Financial Health - As of December 31, 2020, the Group had net current assets of approximately RMB 644,490,000, up from RMB 130,904,000 in 2019[110]. - The Group's current ratio improved to 1.06 from 1.01 in 2019, while the gearing ratio was approximately 12.6% compared to 14.8% in 2019[110]. - Cash and bank balances increased to approximately RMB 2,552,548,000 from RMB 1,958,428,000 in 2019[110]. - The total cost of employees for the year amounted to approximately RMB 1,555,367,000[120]. - The Group employed a total of 15,105 staff members, a decrease from 15,296 in 2019[120].

Financial Performance - The Group's total revenue for the six months ended June 30, 2020, was approximately RMB 11,109 million[11]. - Overall gross profit margin decreased slightly by 0.3 percentage points year-on-year to approximately 12.6%[11]. - Profit attributable to owners of the Company was approximately RMB 407.2 million, representing a significant year-on-year increase of 42.4%[11]. - Basic earnings per share was RMB 0.37, compared to RMB 0.26 for the corresponding period in 2019[11]. - The Group's revenue for the Period was approximately RMB 11,108,670,000, a decrease of approximately 5.1% compared to RMB 11,711,083,000 for the same period in 2019[44]. - Gross profit for the Period amounted to approximately RMB 1,402,521,000, representing a decrease of approximately 7.2% from RMB 1,511,634,000 in 2019, with a gross profit margin of approximately 12.6%[45]. - Profit before tax increased by approximately 47.8% to RMB 534,924,000 compared to RMB 361,898,000 in 2019[56]. - Profit for the period was RMB 396,440, significantly higher than RMB 236,072 in 2019, marking an increase of around 77.1%[143]. - Total comprehensive income for the period attributable to owners of the Company was RMB 410,237, compared to RMB 292,155 in 2019, indicating an increase of about 40.4%[143]. Production and Operations - The Group resumed production in February and achieved full operation by early March 2020 despite the COVID-19 pandemic[10]. - The Group's production plant resumed operations in mid-February 2020 and has been operating at full capacity since early March 2020, with limited impact from the pandemic[163]. - The Group has implemented contingency measures to minimize the impacts of the pandemic on business operations[163]. - The Group's R&D teams collaborated with international institutions to enhance product development capabilities[10]. - The Group has established production facilities in high-demand regions such as Shandong, Jiangsu, and Henan to enhance operational efficiency[28]. Market and Product Development - The Company focused on addressing technological bottlenecks and improving battery product quality and production technology[10]. - The Group continued to develop battery products with superior performance, higher energy efficiency, and greater environmental friendliness[10]. - Revenue from sales of lead-acid motive batteries amounted to approximately RMB 10,372 million, accounting for approximately 93.4% of the Group's total revenue[22]. - Revenue from sales of electric bike batteries was approximately RMB 7,206 million, representing about 64.9% of the Group's total revenue[22]. - The market for electric bikes in the PRC is expected to grow at a compound annual growth rate (CAGR) of around 7% from 2019 to 2023[15]. - The demand for large-scale electric tricycles and electric forklifts has increased due to the expansion of courier services and logistics[15]. - The Group made strategic investments in enterprises manufacturing new models of lithium-ion batteries to introduce advanced products to the market[24]. Research and Development - The Group's R&D expenses reached approximately RMB 370 million, accounting for about 3.3% of total revenue[32]. - R&D expenses increased by approximately 1.3% to RMB 370,431,000, driven by higher expenditure on lead-acid batteries and new technology products[54]. - The Group has recruited over 10 renowned domestic and foreign experts to strengthen its R&D capabilities[33]. - The Group continues to focus on innovation-driven development and industrial integration to enhance product quality[43]. Financial Position and Cash Flow - As of June 30, 2020, the Group's net current assets were approximately RMB 173,280,000, an increase from approximately RMB 130,904,000 as of December 31, 2019[65]. - The Group's cash and bank balances were approximately RMB 2,442,457,000, up from approximately RMB 1,958,428,000 as of December 31, 2019[65]. - The net debt was approximately RMB 1,415,548,000, a decrease from approximately RMB 2,579,920,000 as of December 31, 2019, indicating improved financial health[65]. - The current ratio was approximately 1.01, consistent with the ratio as of December 31, 2019, while the gearing ratio improved to approximately 7.4% from 14.8%[65]. - For the six months ended June 30, 2020, net cash generated from operating activities was RMB 1,615,940, compared to RMB 1,016,294 for the same period in 2019, representing a 58.9% increase[153]. - The company raised borrowings of RMB 1,994,915 during the first half of 2020, while repaying RMB 1,516,772, resulting in a net cash inflow from financing activities[155]. Shareholding and Corporate Governance - Mr. Zhou Mingming holds 416,084,500 shares, representing 37.68% of the company's equity[80]. - Ms. Fang Jianjun also holds 416,084,500 shares, representing 37.68% of the company's equity[80]. - The company has a diverse ownership structure with significant stakes held by various entities and individuals, indicating a broad base of support[89]. - The Company is committed to maintaining high standards of corporate governance in the interests of shareholders[136]. - The Audit Committee comprises four independent non-executive Directors, with Mr. Lee as the chairman[136]. - The Company has adopted a code of conduct for securities transactions that meets or exceeds the Model Code standards[135]. Share Option Scheme - The 2010 Share Option Scheme was adopted on June 7, 2010, and expired on July 6, 2020, aimed at motivating eligible persons to optimize their future performance and efficiency[93]. - The maximum number of shares that may be issued under the 2010 Share Option Scheme is capped at 10% of the total shares in issue, equating to 100,000,000 shares, which represents approximately 9.06% of the total issued share capital as of the report date[96]. - The new Share Option Scheme was approved by shareholders on June 10, 2020, to replace the expiring 2010 Share Option Scheme[120]. - The total outstanding share options as of January 1, 2020, were 98,900,000, indicating a reduction due to cancellations[111]. - The estimated fair value of the share options under the 2010 Share Option Scheme is HK$121,403,000, with specific values for options granted to Directors and employees on various dates[115].

Financial Performance - Revenue for the year ended December 31, 2019, was RMB 27,181,732, an increase of 0.86% from RMB 26,948,237 in 2018[21] - Gross profit for 2019 was RMB 3,393,273, compared to RMB 3,235,268 in 2018, reflecting a growth of 4.9%[21] - Profit attributable to the owners of the Company increased to RMB 561,340 in 2019, up from RMB 412,714 in 2018, representing a growth of 36%[21] - Basic earnings per share rose to RMB 0.51 in 2019, compared to RMB 0.37 in 2018, marking a 38% increase[21] - Proposed final dividend per share increased to HK$0.084 from HK$0.066 in 2018, reflecting a growth of 27.3%[21] - The Group's profit attributable to owners for the year totaled approximately RMB 561 million, representing an increase of approximately 36.0% compared to the previous year[29] - Overall gross profit margin improved by 0.5% to approximately 12.5%, up from approximately 12.0% in 2018[40] - Other income and gains increased by approximately 12.6% to RMB 308,880,000, primarily due to an increase in government grants[79] - Distribution and selling expenses decreased by approximately 9.8% to RMB 828,010,000, accounting for about 3.0% of revenue[79] - Profit before tax increased by approximately 39.4% to RMB 805,486,000 from RMB 577,709,000 in 2018[82] - Income tax expenses increased by approximately 49.3% to RMB 298,831,000 from RMB 200,202,000 in 2018, with an effective tax rate of approximately 37.1%[82] - Cash and bank balances decreased to approximately RMB1,958,428,000 from RMB2,975,507,000 in 2018[82] Market and Industry Trends - The market demand for lead-acid motive batteries is steadily growing, driven by the increasing popularity of electric bikes and vehicles[11] - The PRC's GDP growth reached 6.1% in the year, contributing to increased demand for lead-acid motive batteries for electric bikes and special-purpose electric vehicles[32] - The ownership of electric bikes in the PRC has surpassed 250 million units, providing a solid foundation for the development of rechargeable batteries[41] - The annual production of electric bikes in the PRC has consistently exceeded 30 million units in recent years, with a projected CAGR of around 7% from 2019 to 2023[41] - The ongoing expansion of the electric tricycle market is driven by the aging population and the growth of the e-commerce sector, increasing demand for small and large electric tricycles[44] - The demand for lead-acid motive batteries remains stable due to their cost-efficiency and extensive applications in electric bikes and tricycles[46] Technological Innovation and R&D - The Group has committed to technological innovation, focusing on R&D for new battery types and energy storage solutions[32] - The Group's R&D expenses for the year were approximately RMB 798 million, equivalent to approximately 2.9% of its total revenue, and it owned 2,183 patents as of December 31, 2019[68] - The Group is focusing on technological innovation and has launched smart battery products with longer life and fast-charging features[75] - Future strategies include leveraging new technologies like 5G and AI to enhance proprietary R&D and brand influence[76] - The Group is actively enhancing production technologies through collaborations with pioneering enterprises and renowned institutions to develop superior battery products[39] Corporate Governance - The Company has complied with all code provisions of the Corporate Governance Code throughout the year, except for certain deviations[99] - The Audit Committee comprises all four independent non-executive Directors, with Mr. Lee Conway Kong Wai as the chairman[102] - The Company emphasizes the importance of proper governance and risk management through its established Audit Committee[106] - The Board has proposed a final dividend of HKD0.084 per share for shareholders listed on the Register of Members as of June 18, 2020[109] - The Company has adopted the Code of Conduct for securities transactions by directors and senior management, confirming compliance by all directors for the year[105] - The Company is committed to high standards of corporate governance, ensuring transparency and accountability in its operations[140] Human Resources and Management - As of December 31, 2019, the Group employed a total of 15,296 staff members, a decrease from 16,353 in December 2018[93] - The total cost of employees for the year amounted to approximately RMB1,529,377,000[93] - The Group continues to enhance staff training and professional standards to improve overall employee quality[93] - The Group's management team includes individuals with significant academic and industry experience, enhancing its strategic direction[123][124] - The Group's leadership structure includes family members, which may influence its strategic decisions and governance[120][121] Environmental Responsibility - The Group has achieved total cadmium-free production by the end of 2013, fulfilling its corporate social responsibility as a green enterprise[6] - The Group has been recognized as one of the few members of the battery industry selected for the "Green Design Demonstration Enterprise" list by the MIIT[29] - The Group's investment in green business development has increased, focusing on energy-efficient and environmentally friendly manufacturing processes[32] - The implementation of the "one sold, one collected" recycling system for waste lead-acid batteries is expected to enhance industry standards and promote environmental protection[53] Sales and Distribution - The primary market includes top electric bike manufacturers such as Yadea and Evermaster, supported by a nationwide distribution network[6] - The Group's sales and distribution network has been strengthened, covering both primary and secondary markets to enhance operational efficiency[32] - Revenue from sales of lead-acid motive batteries increased by approximately 1.1% to approximately RMB 24,876 million, accounting for approximately 91.5% of the Group's total revenue[58] - Revenue from sales of lithium-ion battery products amounted to approximately RMB 259 million, with the Group continuing to invest in R&D for higher specific energy batteries[59]

Financial Performance - The Group's total revenue for the period was approximately RMB 11,711 million, representing a significant increase compared to the previous year[11]. - Overall gross profit margin improved to approximately 12.9%, up from 10.9% in the corresponding period of 2018, reflecting a two percentage point increase primarily due to cost reduction[11]. - Profit attributable to owners of the Company surged by 179.3% to approximately RMB 286.0 million, compared to RMB 102.4 million in the same period last year[11]. - Earnings per share increased to RMB 0.26, compared to RMB 0.09 in the corresponding period of 2018[11]. - The Group's revenue for the Period amounted to approximately RMB 11,711,083,000, representing a decrease of approximately 12.4% compared to RMB 13,370,865,000 for the same period in 2018[41][42]. - The Group's gross profit for the Period was approximately RMB 1,511,634,000, representing an increase of approximately 4.2% compared to RMB 1,450,739,000 for the same period in 2018, with a gross profit margin of approximately 12.9%[42]. - Other income and gains for the Period amounted to approximately RMB 185,812,000, representing an increase of approximately 31.6% compared to RMB 141,203,000 for the same period in 2018, mainly due to increased government grants[42]. - Profit attributable to owners of the Company for the Period amounted to approximately RMB 285,974,000, representing an increase of approximately 179.3% compared to approximately RMB 102,395,000 for the same period in 2018[49]. - The Group's profit before tax for the Period increased by approximately 79% to approximately RMB 361,898,000, compared to approximately RMB 202,184,000 for the corresponding period of 2018[47]. Market and Industry Insights - The electric bike market in China has over 250 million units in ownership, with a projected compound annual growth rate (CAGR) of approximately 5.2% from 2016 to 2021[12]. - The demand for electric bikes is expected to grow steadily, particularly in third and fourth tier cities, towns, and rural areas in China[12]. - Revenue from sales of lead-acid motive batteries reached approximately RMB 11,338 million, accounting for approximately 96.8% of the Group's total revenue[22]. - Revenue from sales of electric bike batteries amounted to approximately RMB 8,006 million, representing approximately 68.4% of the Group's total revenue[22]. - Revenue from sales of electric tricycle batteries and special-purpose electric vehicle batteries was approximately RMB 3,332 million, accounting for about 28.5% of the Group's total revenue[22]. - The sales volume of lead-acid batteries for electric bikes in the PRC is expected to grow at a CAGR of 5.4% between 2016 and 2021[18]. Research and Development - The Group is focused on R&D for battery products that offer superior performance, better energy efficiency, and eco-friendliness, enhancing its core competitiveness[10]. - R&D expenses for the Period were approximately RMB 366 million, accounting for approximately 3.1% of the Group's total revenue[34][37]. - The Group aims to enhance its core competitiveness by improving R&D standards, product quality, and operational efficiency while pursuing green development[39][40]. - The Group has established overseas research institutes in the United States, Russia, and Germany to bolster its technological innovation efforts[35]. - The Group owned 1,947 patents and had submitted applications for 331 patents as of June 30, 2019[34][37]. Corporate Governance and Shareholder Information - The Board decided not to declare an interim dividend for the Period[55]. - The Board resolved not to declare the payment of an interim dividend for the Period[58]. - As of June 30, 2019, Mr. Zhou Mingming holds 414,834,500 shares, representing approximately 37.57% of the company's shareholding[60]. - Ms. Fang Jianjun also holds 414,834,500 shares, equivalent to approximately 37.57% of the company's shareholding[60]. - The total number of shares held by directors and their interests in controlled corporations is significant, indicating strong insider ownership[62]. - The company has a concentrated ownership structure, with key directors holding substantial percentages of shares[60]. Financial Position and Cash Flow - As at 30 June 2019, the Group's current ratio was approximately 1.06 and the gearing ratio was approximately 9.9%, indicating sufficient cash and banking facilities to meet commitments[50]. - The total cost of employees amounted to approximately RMB 705,533,000, an increase from approximately RMB 643,529,000 in the same period of 2018[53]. - The aggregate carrying amount of the assets pledged to secure banking facilities at the end of the reporting period was approximately RMB 3,421,474,000, an increase from RMB 2,655,807,000 at the end of 2018[52]. - The company reported a net cash outflow from investing activities of RMB (825,522,000) for the six months ended June 30, 2019, compared to RMB (1,019,304,000) in the previous year[131]. - Cash and cash equivalents at the end of the period were RMB 2,455,501, an increase from RMB 1,940,967 in the previous year[133]. - The company reported a net decrease in cash and cash equivalents of RMB (522,500), compared to an increase of RMB 439,510 in the previous year[133]. Compliance and Accounting Standards - The Company is committed to maintaining compliance with International Accounting Standard 34 for interim financial reporting[117]. - The review of the financial statements was conducted in accordance with International Standard on Review Engagements 2410, ensuring a thorough assessment of financial matters[119]. - The Group applied IFRS 16 for the first time, which superseded IAS 17, impacting accounting policies significantly[139]. - The Group's financial statements for the six months ended June 30, 2019, reflect the adjustments made under IFRS 16[176]. - The Group's total revenue for the six months ended June 30, 2019, was RMB 11,711,083,000, a decrease of 13.4% compared to RMB 13,370,865,000 for the same period in 2018[185].

CHAOWEI POWER HOLDINGS LIMITED 超威動力控股有限公司 COMPANY PROFILE 公司簡介 Chaowei Power Holdings Limited (the "Company" together with its subsidiaries, the "Group") is mainly engaged in the manufacturing and sales of lead-acid motive batteries and other related products. These batteries are widely used in electric bikes, electric vehicles, special-purpose electric vehicles, etc. The Group also manufactures and sells storage batteries and lithium-ion batteries. It is one of the very few enterprises which has successful ...