= ANNUAL REPORT Golden Solar New Energy Technology Holdings Limited 金陽新能源科技控股有限公司 (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立的有限公司) Rollable Solar Awning 卷繞式太陽能遮陽棚 For Carport 車庫用 For Recreational Vehicle 休閒車用 Rollable Solar Module 卷绕式太陽能組件 www.goldensolargroup.com Stock Code:1121 股份代號:1121 Corporate Information 公司資料 | --- | --- | |------------------------------------------------------------------------------------------------------------------------------------------------------- ...

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佈的內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示概不會就本公佈全部或任何部分內容產生或因倚賴該等內 容而引致的任何損失承擔任何責任。 GOLDEN SOLAR GOLDEN SOLAR NEW ENERGY TECHNOLOGY HOLDINGS LIMITED 金陽新能源科技控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1121） 截至二零二二年十二月三十一日止年度的業績公佈 金陽新能源科技控股有限公司（「本公司」）之董事（「董事」）會（「董事會」）謹此公佈本公司及其附 屬公司（統稱為「本集團」）截至二零二二年十二月三十一日止年度的經審核綜合業績及與二零 二一年度的比較數據以及下文所載的相關解釋附註。 – 1 – 綜合損益及其他全面收益表 截至二零二二年十二月三十一日止年度 | --- | --- | --- | --- | |---------------------------------------------------------------|-------|------------|------------| ...

Revenue Performance - The company reported a total revenue of approximately RMB 161.8 million for the six months ended June 30, 2021, representing an increase of 235.5% compared to RMB 48.2 million in the same period of 2020[26]. - Revenue from OEM business reached RMB 157.3 million, a significant increase of 237.0% from RMB 46.7 million in the previous year[29]. - Revenue from graphene-based products surged to RMB 3.3 million, marking a remarkable increase of 703.9% compared to RMB 412,000 in 2020[29]. - The Group's revenue increased by approximately RMB 113.6 million or 235.5% to approximately RMB 161.8 million during the Period, primarily due to a rise in OEM business revenue by approximately RMB 110.6 million to RMB 157.3 million[30]. - Revenue from Boree Products decreased by 39.8% to approximately RMB 0.7 million during the Period[31]. - Revenue from Graphene-based Products amounted to approximately RMB 3.3 million, with Graphener revenue increasing by 218.9% to approximately RMB 1.3 million[32]. - Revenue for the six months ended June 30, 2021, reached RMB 161,825,000, a significant increase of 235% compared to RMB 48,240,000 in the same period of 2020[180]. - Revenue from the US market was RMB 153,418,000, representing a substantial increase of 273% from RMB 41,106,000 in 2020[172]. Profitability and Loss - The gross profit for the period was RMB 44.3 million, with a gross profit margin of approximately 27.4%, up from 12.5% in the corresponding period of 2020[26]. - The net loss for the period was approximately RMB 3.8 million, a reduction from a net loss of RMB 11.4 million in the same period last year, indicating a 66.4% improvement[27]. - The gross profit increased by approximately RMB 38.3 million, contributing to the reduction in net loss[27]. - The loss attributable to owners of the company for the period was RMB 3,839,000, compared to a loss of RMB 11,412,000 in the same period last year, showing an improvement of 66%[117]. - Basic and diluted loss per share for the period was RMB 0.002, compared to RMB 0.008 in the previous year, reflecting a reduction of 75%[117]. Financial Position - Shareholders' equity increased to RMB 261.9 million, reflecting a substantial growth of 595.1% compared to the previous year[25]. - Current assets increased to RMB 340,369,000 as of June 30, 2021, from RMB 102,799,000 as of December 31, 2020, marking a growth of 231%[121]. - The company had net current assets of RMB 135,782,000, compared to net current liabilities of RMB 132,103,000 as of December 31, 2020, indicating a turnaround[121]. - Total assets less current liabilities amounted to RMB 268,180,000 as of June 30, 2021, compared to a negative balance of RMB 39,262,000 at the end of 2020[121]. - The total equity of the company was RMB 261,965,000, compared to a capital deficiency of RMB 44,889,000 as of December 31, 2020, indicating a significant improvement in financial position[122]. Cash Flow and Financing - The Group experienced a net cash outflow from operating activities of approximately RMB 38.5 million during the Period[38]. - The net increase in cash and cash equivalents for the six months ended June 30, 2021, was RMB 162,634,000, a substantial rise from RMB 6,645,000 in the prior year[140]. - The company’s financing activities generated RMB 276,038,000 in cash for the six months ended June 30, 2021, compared to RMB 3,558,000 in the same period of 2020[140]. - Cash and bank balances increased approximately 260 times to RMB 163.3 million as of June 30, 2021[38]. - The Group's short-term borrowings were approximately RMB 102.9 million as of June 30, 2021, down from RMB 130.1 million at the end of 2020[38]. Expenses and Costs - Selling and distribution expenses increased by 32.4% to approximately RMB 5.2 million, accounting for 3.2% of the Group's revenue[34]. - General and administrative expenses rose by approximately RMB 20.4 million or 102.9% to approximately RMB 40.3 million, mainly due to consultancy fees and increased wages[36]. - Employee benefit expenses, including wages and salaries, totaled RMB 38,892,000, up from RMB 21,884,000, reflecting a 77% increase[183]. - Research and development costs increased by approximately RMB 1.9 million as the company expanded its efforts in new product development[27]. - Research and development costs for the period amounted to RMB 7,006,000, up from RMB 5,104,000 in 2020, indicating a 37% increase[183]. Share Capital and Options - As of June 30, 2021, the company had 1,652,695,608 shares issued and a paid-up capital of approximately RMB 110,019,000, an increase from 1,486,859,608 shares and RMB 99,310,000 as of January 1, 2021[41]. - The company issued 88,836,000 shares during the period in respect of the exercise of share options[190]. - The total number of shares in issue as of June 30, 2021, was 1,652,695,608 shares[103]. - The company adopted a new share option scheme on July 2, 2021, to motivate and reward its directors and eligible employees[47]. - As of June 30, 2021, the total outstanding share options amounted to 313,600,000, with 223,964,000 remaining unexercised[89]. Corporate Governance and Management - The company has complied with the Corporate Governance Code, with some deviations noted[105]. - Mr. Zheng Jingdong performed both roles of Chairman and CEO until February 25, 2021, after which Mr. Leung Tsz Chung was appointed as Chairman and CEO[107]. - Independent non-executive Director Ms. An Na did not attend the annual general meeting on June 29, 2021, due to other business commitments[108]. - The chairperson of the remuneration committee, Ms. An Na, was also unable to attend the annual general meeting on June 29, 2021, due to other business commitments[109]. Business Operations and Strategy - The company is engaged in the manufacture and sale of various products, including graphene-based materials and solar cells, indicating a focus on innovative technologies[142]. - The Group's reportable segments include Boree branded products, Graphene-based products, OEM, and Photovoltaic products[150]. - The Photovoltaic Products segment manufactures and sells Cast-mono wafers and solar cells, indicating the Group's involvement in renewable energy[153]. - The Group plans to achieve commercial mass production of Cast-mono wafers in the second half of 2021[63]. - Future plans include combining the Cast-mono Flexible Module with energy storage batteries for a home solar power storage system[64].

Financial Performance - For the year ended December 31, 2019, Baofeng Modern recorded a revenue increase of approximately RMB 5.2 million or 3.2%, totaling approximately RMB 169.7 million[8]. - The Group reported a loss for the year of RMB 314.4 million, compared to a loss of RMB 275.3 million in 2018[6]. - The gross profit margin decreased to approximately 17.7% due to customers shifting orders to manufacturers in Southeast Asia and India[8]. - Revenue from OEM business increased by 4.1% to approximately RMB 162.9 million in 2019, while revenue from graphene-based products decreased to approximately RMB 4.0 million[24]. - The revenue from Boree products decreased by 21.4% to approximately RMB 2.7 million in 2019 due to a decline in online sales[25]. - The Group experienced a net loss of approximately RMB 314.4 million in 2019, compared to a net loss of RMB 275.3 million in 2018, primarily due to impairment losses on intangible assets and amortization expenses[19]. Current Financial Position - Current assets were reported at RMB 120.5 million, while current liabilities stood at RMB 223.3 million, resulting in a current ratio of 0.5x[6]. - The debt ratio increased to 82.3%, indicating a high level of leverage compared to previous years[6]. - As of December 31, 2019, the Group's gearing ratio was 466.4% (2018: 80.9%), indicating a significant increase in leverage[32]. - The debt ratio as of December 31, 2019, was 82.3% (2018: 44.7%), reflecting a higher proportion of debt relative to equity[37]. Impact of COVID-19 - Looking ahead to 2020, the Group anticipates short-term impacts on operational and financial performance due to COVID-19 and ongoing trade tensions[9]. - The outbreak of COVID-19 in the PRC is expected to have a short-term negative impact on the Group's operational and financial performance, particularly affecting the OEM business and retail sales of slippers[50]. - The Group's factories in Fujian Province resumed work on February 10, 2020, but expects delays in product deliveries due to the COVID-19 epidemic[51]. - Major OEM customers in the US requested to postpone delivery times for some orders due to the ongoing outbreak since March 2020[51]. Strategic Focus and Product Development - The Group plans to focus on the design and sales of indoor slippers and allocate more resources to online sales in 2020[9]. - The Group aims to enhance brand popularity through cross-over collaborations and the new DIY vending system[10]. - The Group is focusing on developing household air purifiers and sterilizers in response to strong public demand due to the epidemic[15]. - A carbon-based energy storage batteries research and development line was established in the first half of 2019, with plans to commence mass production by the end of 2020[14]. - The Group aims to diversify its product offerings to include large-scale air conditioning systems and household air purifiers in the coming years[15]. Corporate Governance - The Group is committed to maintaining good corporate governance practices, ensuring compliance with the Corporate Governance Code throughout the financial year ended December 31, 2019[60]. - All independent non-executive Directors meet the guidelines for independence assessment as set out in the Listing Rules[60]. - The Board of Directors held regular meetings throughout the year to formulate overall strategy and monitor financial performance[62]. - The company secretary completed no less than 29 hours of relevant professional training during the financial year ended December 31, 2019[66]. - The independent non-executive directors provided independent advice on the Group's business strategy and management, ensuring shareholder interests are protected[75]. Environmental and Social Responsibility - The Group is committed to corporate social responsibility while pursuing growth, focusing on product safety, quality, and employee care[127]. - The Group has established and implemented the ISO14001 environmental management system since 2006, with annual reviews by third-party certification institutions[129]. - The Group aims to achieve resource recycling and non-hazardous objectives during production and operation processes[129]. - The total greenhouse gas (GHG) emissions decreased despite a revenue increase of approximately 3.2% in 2019, indicating improved emission control measures[136]. - The Group adheres to the "Environmental Protection Law of the People's Republic of China" and implements daily inspections of pollution treatment facilities to ensure compliance with national standards[132]. Employee Welfare and Training - The Group provides comprehensive social security benefits, including basic salary, pensions, and medical insurance, to ensure employee welfare[157]. - The Group conducts regular inspections and reviews of human resources policies to eliminate child labour and forced labour, ensuring compliance with relevant laws[168]. - The Group provides comprehensive orientation training for newly-recruited employees, covering corporate culture, operation processes, and safety management[167]. - The Group encourages employee participation in on-the-job training and provides subsidies to eligible employees[167]. Risk Management and Internal Controls - The Board is responsible for maintaining an effective risk management and internal control system to protect the Group's assets and shareholders' interests[119]. - During the financial year ended December 31, 2019, the Board and audit committee conducted a review of the internal control system and found it to be adequate and effective[120]. - The internal audit function is in place to support the Board in maintaining effective risk management and internal controls[119]. - The review of the internal control system covered all material controls, including financial, operational, and compliance controls[120].