Financial Performance - Total revenue for the first half of 2024 reached RMB 17,260,636,497.03, a 25.3% increase from RMB 13,763,822,101.53 in the same period of 2023[14]. - Net profit attributable to the parent company for the first half of 2024 was RMB 541,073,632.84, compared to RMB 104,400,407.08 in the first half of 2023, reflecting a significant increase[18]. - The company reported an operating profit of RMB 694,868,031.09 for the first half of 2024, significantly higher than RMB 105,346,974.95 in the same period of 2023[17]. - Total comprehensive income attributable to the parent company for the first half of 2024 reached RMB 523.28 million, a significant recovery from a loss of RMB 191.03 million in the same period of 2023[20]. - Basic and diluted earnings per share for the first half of 2024 were both RMB 0.23, compared to RMB 0.05 in the first half of 2023, indicating a substantial improvement[20]. - The company reported a net profit attributable to ordinary shareholders of ¥522,667,422.32 for the current period, compared to ¥84,889,971.05 in the previous period, resulting in earnings per share of ¥0.23, up from ¥0.05[38]. Assets and Liabilities - As of June 30, 2024, the total assets of Harbin Electric Company amounted to RMB 73.31 billion, an increase from RMB 71.30 billion as of December 31, 2023, representing a growth of approximately 2.8%[4]. - The total liabilities of Harbin Electric Company rose to RMB 58.34 billion from RMB 56.71 billion, indicating an increase of about 2.9%[8]. - The company's current assets decreased to RMB 62.44 billion from RMB 60.63 billion, reflecting a decline of about 2.9%[3]. - The company's long-term borrowings decreased to RMB 1.04 billion from RMB 1.75 billion, a reduction of about 40.3%[7]. - The total equity attributable to shareholders increased to RMB 14,257,828,523.06 as of June 30, 2024, from RMB 13,864,702,149.07 at the end of 2023, reflecting a strengthening of shareholder value[12]. Cash Flow - Cash inflow from operating activities for the first half of 2024 was RMB 21.04 billion, up from RMB 17.65 billion in the same period of 2023, reflecting a growth of approximately 19.5%[21]. - Cash outflow from operating activities increased to RMB 22.47 billion in the first half of 2024, compared to RMB 16.32 billion in the same period of 2023, resulting in a net cash flow from operating activities of -RMB 1.43 billion[22]. - The net increase in cash and cash equivalents for the first half of 2024 was -RMB 2.17 billion, compared to an increase of RMB 976.66 million in the same period of 2023[26]. - The ending balance of cash and cash equivalents as of June 30, 2024, was RMB 15.20 billion, down from RMB 17.27 billion at the end of June 2023[26]. Investments and R&D - The company has ongoing investments in new technologies and product development, although specific figures and details are not provided in the documents[1]. - Research and development expenses for the first half of 2024 were RMB 413,244,085.73, up from RMB 350,755,734.82 in the same period of 2023, highlighting the company's commitment to innovation[15]. - The company’s research and development investment intensity in the first half of the year is 3.6%, focusing on key core technology projects and collaborations with national innovation platforms[63]. Market and Operations - The company is focused on expanding its market presence and enhancing its product offerings in the power generation sector[29]. - The company operates through three main business segments: new energy-based power systems, green low-carbon drive systems, and clean efficient industrial systems, each requiring different technologies and market strategies[32]. - The company maintained a good level of market orders for its main products, indicating stable operational development[46]. Corporate Governance and Compliance - The company has complied with the Corporate Governance Code during the period ending June 30, 2024, but the board and supervisory committee's term expired on January 28, 2024, leading to a delay in the re-election process[76]. - The audit committee has reviewed and approved the interim financial report for the six months ending June 30, 2024[77]. - The company's auditor, Deloitte, has conducted a review of the interim financial report for the six months ending June 30, 2024, in accordance with the relevant auditing standards[78]. Employee and Training - As of June 30, 2024, the company had 11,094 employees with a total salary of 959.92 million yuan, and organized 482 training sessions for 21,527 participants in the first half of 2024[65].

Investment Rating - The report initiates coverage with a "Buy" rating and sets a target price of HKD 3.20, indicating a potential upside of 24.0% from the current price of HKD 2.58 [2][6][90]. Core Insights - Harbin Electric is one of China's largest state-owned enterprises in energy equipment manufacturing, with significant market shares in coal, hydro, and nuclear power equipment [3][14]. - The company has seen a substantial increase in coal power orders, with new orders reaching CNY 13.97 billion in 2023, a year-on-year growth of 101.6% [5][24]. - The energy sector in China is transitioning towards a new power system, where coal power remains a core component despite the rapid growth of renewable energy installations [4][34]. Company Overview - Harbin Electric is a key player in the energy equipment sector, producing major equipment for coal, hydro, nuclear, and gas power generation [3][14]. - The company has a historical significance, originating from the first five-year plan of China and has evolved into a crucial backbone of the national energy infrastructure [15][19]. Industry Analysis - The energy demand in China has been growing rapidly, with a compound annual growth rate (CAGR) of 6.4% over the past eight years [42]. - Coal power still accounts for a significant portion of the energy mix, with coal-fired generation representing 63% of total power generation in 2023, reflecting a 5 percentage point increase year-on-year [4][40]. - The government has set ambitious targets for renewable energy, with expectations for coal power to continue playing a supportive role in energy security [34][52]. Financial Performance - The company forecasts a compound annual growth rate (CAGR) of 42.5% in net profit from 2024 to 2026, with projected net profits of CNY 9.5 billion, CNY 13.9 billion, and CNY 16.8 billion respectively [6][88]. - Revenue is expected to grow significantly, with projections of CNY 367.9 billion, CNY 426.8 billion, and CNY 454.7 billion for the years 2024 to 2026 [87][88]. Order and Revenue Analysis - The company has experienced a consistent increase in order volumes, with total contract signings reaching CNY 43.57 billion in 2023, a 29.5% increase from the previous year [24][26]. - The revenue from coal power equipment is expected to rise as the company completes the delivery of previous low-cost orders, enhancing overall profitability [5][71]. Future Outlook - The report anticipates that the demand for coal power equipment will remain strong due to ongoing projects and the need for flexibility upgrades in existing coal plants [72][75]. - The company is well-positioned to benefit from the planned expansion of pumped storage capacity, with expectations for significant growth in hydro power orders [76][80].

Financial Performance - The company achieved a revenue of RMB 28,840.86 million in 2023, representing a year-on-year increase of 17.03%[5]. - Net profit attributable to the parent company reached RMB 574.76 million, an increase of RMB 47.61 million compared to the previous year[5]. - The company’s earnings per share rose to RMB 0.257, compared to RMB 0.058 in the previous year[5]. - The company's operating revenue for 2023 was RMB 28.84 billion, representing a year-on-year growth of 17.03%, with new power equipment revenue reaching RMB 15.75 billion, up 34.06%[19]. - The gross profit for 2023 was RMB 3.12 billion, an increase of RMB 256.35 million year-on-year, with a gross margin of 10.82%, down 0.8 percentage points[21]. - The company reported a significant increase in revenue, with a year-over-year growth of 15% in the latest fiscal year[42]. - Net profit for the current period was RMB 615.38 million, compared to RMB 129.43 million in the previous period, representing a significant increase of 376.5%[159]. - Total operating revenue for the current period reached RMB 29.25 billion, a 17.1% increase from RMB 24.98 billion in the previous period[158]. Assets and Liabilities - Total assets amounted to RMB 71,296.95 million, while total liabilities were RMB 56,709.16 million, indicating a solid financial position[5]. - The company’s total borrowings as of December 31, 2023, were RMB 61.48 billion, a decrease from RMB 76.07 billion at the end of 2022, with no debt default risk reported[23]. - The total liabilities of the company as of December 31, 2023, were 56,709.16 million, with a year-to-date increase of 579.95 million, resulting in a debt-to-asset ratio of 79.54%[26]. - The total equity attributable to the parent company as of December 31, 2023, was 13,864.70 million, an increase of 213.68 million, with a net asset return of 4.6%[27]. - The total current assets reached RMB 60.63 billion, up from RMB 53.52 billion, representing a growth of about 13.2%[146]. - Total liabilities increased to RMB 56,709,158,680.13 from RMB 50,909,668,579.12, representing a growth of approximately 11.0%[150]. Research and Development - Research and development expenses were increased, with the establishment of 7 innovation joint bodies and 2 national key laboratories[7]. - The company's R&D investment totaled RMB 1.584 billion in 2023, with a research intensity of 5.53%, and completed 300 research projects and developed 210 new products[15]. - The company is investing $50 million in R&D for innovative technologies over the next three years[43]. - Research and development expenses increased to RMB 998.63 million, up 37.3% from RMB 726.64 million in the previous period[158]. Market and Contracts - The company signed contracts worth RMB 43,565 million during the year, reflecting a year-on-year growth of 29.53%[7]. - The company maintained a leading market share in large hydropower equipment, with significant breakthroughs in nuclear power turbine generator market development[7]. - The new power equipment segment contributed RMB 24.590 billion, up 44.32% year-on-year, with coal power equipment increasing by 101.66% to RMB 13.973 billion[13]. - The company actively participated in the "Belt and Road" initiative, expanding its international market presence[4]. Corporate Governance - The company has appointed Mr. Cao Zhian as the executive director, chairman, and party secretary since December 2021, with extensive experience in the energy sector[34]. - The board of directors consists of 7 members, including 4 independent non-executive directors as of early 2023[106]. - The company confirmed that all independent non-executive directors provided annual confirmations of their independence[107]. - The board of directors is committed to maintaining high levels of corporate governance, which is crucial for the company's long-term success and sustainable development[103]. Cash Flow and Investments - The company’s cash and cash equivalents as of December 31, 2023, were RMB 18.68 billion, an increase of RMB 1.376 billion from the beginning of the year[24]. - Cash inflow from operating activities is RMB 41,904,757,870.87, an increase from RMB 33,169,583,759.74 in the previous period[163]. - The net cash flow from operating activities is RMB 2,284,202,514.81, a decrease from RMB 4,747,071,805.20 in the previous period[163]. - The company raised 1,714,666,520.00 RMB from new investments, a significant increase from 4,888,840.00 RMB in the previous period, reflecting strong investor confidence[165]. Employee and Training - The workforce as of December 31, 2023, consisted of 11,283 employees, with 15.71% being female and 8.91% aged 55 and above[54]. - The company organized 1,397 training sessions in 2023, training a total of 31,300 participants[54]. Compliance and Risk Management - The company has established a comprehensive risk management system to address international operational risks, including currency fluctuations and geopolitical uncertainties[48]. - The company is focused on compliance with relevant laws and regulations, ensuring that all business contracts meet the requirements of the Civil Code of the People's Republic of China[50]. - The financial system is deemed complete and well-organized, with operations running in accordance with internal control and risk management requirements[101]. Future Outlook - The company plans to enhance its core competitiveness and market influence, focusing on high-end, intelligent, and green development in the equipment manufacturing industry[9]. - The company anticipates that by the end of 2024, the national power generation capacity will reach 3.25 billion kilowatts, a year-on-year increase of approximately 12%[33]. - The company plans to strengthen its brand, quality, and service to enhance product competitiveness and expand market reach amid increasing market competition[49].

Investment Rating - The report assigns a rating of "Outperform" to the company [3] Core Views - The company reported a revenue of 28.841 billion CNY in 2023, representing a year-on-year increase of 17% [3] - The net profit attributable to shareholders reached 575 million CNY, a significant increase of 482.69% year-on-year, driven by reduced credit impairment losses and increased investment income [3] - The company continues to experience high growth in new orders, with a contract signing amount of 43.565 billion CNY in 2023, up 29.53% year-on-year [3] Financial Summary - Total revenue is projected to grow from 29.250 billion CNY in 2023 to 38.426 billion CNY in 2024, reflecting a growth rate of 34% [4] - The net profit forecast for 2024 is 925 million CNY, which indicates a year-on-year growth of 61% [4] - The company's gross margin is expected to improve from 10.97% in 2023 to 13.15% in 2024 [4] Order and Revenue Insights - New energy equipment revenue increased by 34% year-on-year, although the overall gross margin decreased by 0.8 percentage points to 10.82% due to the impact of low-margin orders [3] - The company has secured significant contracts in various sectors, including new energy and industrial systems, indicating a robust order pipeline [3] Capital Expenditure and Investment - The company plans to invest approximately 2.563 billion CNY in capital expenditures in 2024, up from 1.501 billion CNY in 2023, focusing on technology upgrades and capacity enhancements [3] - The successful completion of a private placement raised 1.7 billion CNY, increasing the major shareholder's stake to 69.79% [3]

Financial Performance - The total operating revenue for 2023 was RMB 29,250,349,896.53, representing an increase of 17.1% compared to RMB 24,984,261,415.23 in 2022[11]. - The net profit attributable to the parent company for 2023 was RMB 574,760,038.85, a significant increase from RMB 98,638,427.66 in 2022, marking a growth of 481.5%[12]. - The operating profit for 2023 was RMB 843,802,355.80, a substantial increase from RMB 155,701,780.69 in 2022, representing a growth of 442.5%[12]. - The total comprehensive income for 2023 was RMB 441,846,709.39, compared to RMB 188,045,814.40 in 2022, indicating an increase of 134.9%[12]. - Basic and diluted earnings per share for 2023 were both RMB 0.31, compared to RMB 0.06 in 2022, indicating a 416.7% increase[14]. - The company reported a comprehensive income loss of RMB 178.14 million for the year, impacting the equity attributable to shareholders[22]. - The company's net profit for the current period is approximately 61.54 million, compared to 12.94 million in the previous year, indicating a growth of approximately 376.5%[40]. Assets and Liabilities - As of December 31, 2023, total assets amounted to RMB 71.30 billion, an increase from RMB 63.28 billion as of December 31, 2022, representing a growth of approximately 12.7%[5]. - Current assets reached RMB 60.63 billion, up from RMB 53.52 billion in the previous year, indicating a year-over-year increase of about 13.2%[5]. - Total current liabilities rose to RMB 52.87 billion from RMB 45.86 billion, marking an increase of approximately 15.0%[7]. - The total liabilities increased to RMB 56.71 billion from RMB 50.91 billion, reflecting a growth of about 11.0%[9]. - The company's total equity attributable to shareholders reached RMB 13,864,702,149.07 as of December 31, 2023, compared to RMB 11,727,949,835.56 in 2022, reflecting a growth of 18.2%[10]. - The total accounts payable at the end of the period is approximately 16.20 billion, an increase from 13.80 billion at the beginning of the year, representing a growth of about 17.5%[29]. Cash Flow - Net cash flow from operating activities for 2023 was RMB 2,284,202,514.81, down from RMB 4,747,071,805.20 in 2022, a decrease of approximately 52.0%[15]. - Cash inflow from investment activities totaled RMB 1,811,657,124.87 in 2023, compared to RMB 817,867,357.15 in 2022, marking an increase of about 121.0%[16]. - The net cash flow from investment activities was negative RMB 1,708,542,784.47 in 2023, worsening from negative RMB 660,426,244.64 in 2022[16]. - Cash inflow from financing activities was RMB 4,451,294,108.55 in 2023, slightly down from RMB 4,577,834,564.38 in 2022, a decrease of about 2.8%[17]. - The net cash flow from financing activities improved to RMB 521,878,431.54 in 2023, compared to a negative RMB 464,069,510.85 in 2022[17]. Research and Development - Research and development expenses for 2023 were RMB 998,625,593.36, an increase of 37.3% from RMB 726,641,980.52 in 2022[11]. - Total R&D investment for the year was RMB 1.584 billion, with a research and development intensity of 5.53%[52]. - The company has completed 300 research projects and developed 210 new products in 2023[52]. Market Expansion and Strategy - The company is focusing on expanding its market presence and investing in new technologies to drive future growth[1]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[22]. - The company is actively expanding its overseas engineering contracting market, achieving significant contract signing amounts in Central Asia and South Asia[49]. - The company plans to invest RMB 2.563 billion in 2024 for key construction and technology renovation projects[54]. Dividend and Shareholder Information - The board proposed a final dividend of RMB 0.052 per share for the fiscal year 2023, representing 20.23% of the earnings per share[45]. - The total dividend payout amounts to RMB 116,286,352.00, based on a total share capital of 2,236,276,000 shares[71]. - The dividend will be paid on July 24, 2024, with a record date from June 17 to June 21, 2024[72]. Operational Efficiency and Future Goals - The company emphasized its commitment to high-quality development and improving operational efficiency in 2023[48]. - The company aims to enhance its core competitiveness and focus on high-end, intelligent, and green development directions[98]. - The company plans to accelerate technological innovation and strengthen its core technology breakthroughs[98]. - The company is committed to improving operational efficiency through lean management and enhancing product quality and service levels[98]. Legal and Compliance - The company confirms the independence of its independent non-executive directors as per the Hong Kong Stock Exchange Listing Rules[75]. - As of December 31, 2023, the company had no shareholdings or relevant interests held by directors, supervisors, or senior management in the company or its related entities[76]. - The audit committee has reviewed the company's audited financial statements for the year ending December 31, 2023, including internal controls and risk management[95]. - The financial statements for the year ending December 31, 2023, were audited by Dahua CPA, with a fee of RMB 2.2 million[96].

Financial Performance - Revenue for the first half of 2023 reached RMB 13,570.86 million, a year-on-year increase of 15.58%[7] - Net profit attributable to the parent company was RMB 84.89 million, up 63.78% year-on-year[7] - Total operating revenue for the first half of 2023 reached 13.76 billion RMB, a 15.9% increase compared to 11.87 billion RMB in the same period of 2022[43] - Net profit attributable to the parent company's owners in the first half of 2023 was 84.89 million RMB, a 63.8% increase from 51.84 million RMB in the same period of 2022[45] - Operating profit for the first half of 2023 was 105.35 million RMB, a 2.0% increase compared to 103.23 million RMB in the same period of 2022[45] - Total comprehensive income for the first half of 2023 was -191,031,239.80 RMB, down from 78,845,945.78 RMB in the first half of 2022[47] - Basic earnings per share increased to 0.05 RMB in the first half of 2023, up from 0.03 RMB in the same period of 2022[47] - EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the period was RMB 899,280,373.83[122] Orders and Production - New power equipment orders amounted to RMB 18.928 billion, a year-on-year increase of 187.79%, with coal power equipment orders growing by 437.97%[8] - Export orders reached RMB 7.361 billion, a year-on-year increase of 156.84%[8] - Power generation equipment production reached 12.83 million kW, a year-on-year increase of 49.9%[9] - The company secured several major contracts, including the world's largest 500MW impact-type hydroelectric unit and a 400MW variable-speed pumped storage unit[22] Assets and Liabilities - Total assets increased by 9.56% to RMB 69.33138 billion, with current assets accounting for 84.54% of total assets[13] - Total liabilities increased by 12.15% to RMB 57.09663 billion, mainly due to an increase in contract liabilities (advance receipts)[13] - Total assets increased to RMB 69.33 billion as of June 30, 2023, up from RMB 63.28 billion at the beginning of the year[38] - Current assets rose to RMB 58.61 billion, compared to RMB 53.52 billion at the start of 2023[37] - Non-current assets grew to RMB 10.72 billion, up from RMB 9.76 billion at the beginning of the year[38] - Total liabilities increased to RMB 57.10 billion, up from RMB 50.91 billion at the start of 2023[40] - Current liabilities rose to RMB 52.94 billion, compared to RMB 45.86 billion at the beginning of the year[39] - Non-current liabilities decreased to RMB 4.16 billion, down from RMB 5.05 billion at the start of 2023[40] - Total assets as of June 30, 2023, amounted to 69.33 billion RMB, a 9.6% increase from 63.28 billion RMB at the beginning of the year[42] - Total equity attributable to the parent company's owners as of June 30, 2023, was 11.53 billion RMB, a 1.7% decrease from 11.73 billion RMB at the beginning of the year[42] - Total liabilities and equity as of June 30, 2023, reached 69.33 billion RMB, a 9.6% increase from 63.28 billion RMB at the beginning of the year[42] - Total equity as of June 30, 2023, was 12.23 billion RMB, a 1.1% decrease from 12.37 billion RMB at the beginning of the year[42] - Minority interest in equity as of June 30, 2023, was 709.54 million RMB, a 9.9% increase from 645.91 million RMB at the beginning of the year[42] - Total owner's equity amounted to 12.19 billion RMB as of H1 2023, with minority interests at 626 million RMB[54] - Undistributed profits stood at 4.68 billion RMB in H1 2023, reflecting a 55.8 million RMB increase from the previous period[54] - The company's capital reserve (capital surplus) was 4.34 billion RMB as of H1 2023[54] - The company's total equity attributable to owners was 11.57 billion RMB in H1 2023, with a slight increase of 73.9 million RMB from the previous period[54] Cash Flow - Cash and cash equivalents increased by 6.32% to RMB 183.9461 billion as of June 30, 2023, compared to the beginning of the period[14] - Cash and cash equivalents increased to RMB 18.39 billion, up from RMB 17.30 billion at the beginning of the year[37] - Cash received from sales of goods and services in the first half of 2023 was 17,460,424,872.49 RMB, a significant increase from 11,698,804,483.53 RMB in the same period of 2022[48] - Net cash flow from operating activities in the first half of 2023 was 1,322,174,637.46 RMB, up from 825,359,071.13 RMB in the same period of 2022[49] - Cash paid for goods and services in the first half of 2023 was 13,338,955,050.96 RMB, an increase from 10,883,485,237.11 RMB in the same period of 2022[49] - Net cash flow from investing activities in the first half of 2023 was -318,891,740.59 RMB, compared to -287,696,481.28 RMB in the same period of 2022[50] - Cash received from investments in the first half of 2023 was 585,669,693.39 RMB, a significant increase from 0 RMB in the same period of 2022[50] - Cash paid for the acquisition of fixed assets, intangible assets, and other long-term assets in the first half of 2023 was 425,654,336.40 RMB, up from 202,334,500.10 RMB in the same period of 2022[50] - Cash paid for investments in the first half of 2023 was 400,407,200.00 RMB, a significant increase from 93,821,500.00 RMB in the same period of 2022[50] - Net cash flow from financing activities decreased to -38.8 million RMB in H1 2023, compared to 653.5 million RMB in H1 2022[51] - Cash and cash equivalents increased by 976.7 million RMB in H1 2023, reaching 17.27 billion RMB at the end of the period[52] - The company absorbed 14.67 million RMB in investment cash in H1 2023, a significant increase from 4.89 million RMB in H1 2022[51] - Debt repayment amounted to 1.06 billion RMB in H1 2023, down from 1.47 billion RMB in H1 2022[51] - Dividend and interest payments totaled 117.9 million RMB in H1 2023, a decrease from 211.4 million RMB in H1 2022[51] - Exchange rate impact on cash and cash equivalents was 12.23 million RMB in H1 2023, slightly higher than 11.58 million RMB in H1 2022[52] R&D and Innovation - R&D expenses increased by RMB 62.06 million to RMB 350.76 million, reflecting the company's focus on innovation and new technologies[12] - The company's R&D investment intensity reached 4% in the first half of 2023, focusing on key core technology breakthroughs and digital transformation[21] - R&D expenses in the first half of 2023 were 350.76 million RMB, a 21.5% increase compared to 288.69 million RMB in the same period of 2022[43] Energy and Environment - Non-fossil energy power generation capacity reached 1.39 billion kW, accounting for 51.5% of total installed capacity, up 3.4 percentage points year-on-year[5] - China's total installed power generation capacity is expected to reach 2.86 billion kilowatts by the end of 2023, a year-on-year increase of 11.5%[25] - Non-fossil energy installed capacity is projected to account for 53% of total capacity, reaching 1.51 billion kilowatts, up 3 percentage points year-on-year[25] - Combined installed capacity of wind and solar power is expected to reach 960 million kilowatts, accounting for one-third of total capacity, up 4 percentage points year-on-year[25] Market and Strategy - The company aims to enhance market share, expand order scale, and improve contract quality in the second half of 2023[26] - The company plans to focus on high-end, intelligent, and green development in equipment manufacturing, with increased investment in technological innovation[26] Corporate Governance - The company has complied with the Corporate Governance Code and appointed a new executive director to fill a vacancy[32] - The audit committee has reviewed and approved the company's unaudited interim financial report for the first half of 2023[33] - The company's consolidated financial statements for the first half of 2023 are prepared in accordance with the "Enterprise Accounting Standards" and relevant regulations, with RMB as the reporting currency[58][62] - The company has assessed its ability to continue operations for the next 12 months and found no significant concerns, thus the financial statements are prepared on a going concern basis[59] Accounts Receivable and Bad Debt - Accounts receivable are measured at fair value initially and presented at amortized cost less impairment, with expected credit losses recognized over the lifetime of the receivables[64][66] - The company applies a provision matrix for accounts receivable based on aging, with impairment rates ranging from 0-5% for receivables within 1 year to 100% for receivables over 5 years[67] - The company's accounts receivable totaled RMB 13,523,204,211.55, with a bad debt provision of RMB 4,978,057,289.62, representing a provision rate of 36.81%[80] - Single-item bad debt provision for accounts receivable amounted to RMB 1,833,582,388.88, with a provision rate of 66.62%[80] - The company's accounts receivable from Harbin Power Technology Development Co., Ltd. amounted to RMB 350,582,500.00, with a bad debt provision of RMB 31,055,125.00, representing a provision rate of 8.86%[82] - The company's accounts receivable from China Shipbuilding Industry Corporation 703 Research Institute amounted to RMB 286,369,055.40, with a bad debt provision of RMB 44,614,150.00, representing a provision rate of 15.58%[82] - The company's accounts receivable from Sudan's Ministry of Water Resources and Electricity amounted to RMB 39,994,803.00, with a 100% bad debt provision due to long-term non-recovery[82] - Accounts receivable with individual bad debt provision: Sudan National Electricity Company (56,360,011.90 RMB, 100% provision)[84], Datang Environment Industry Group (27,384,367.22 RMB, 80% provision)[84], Inner Mongolia Chuangyuan Metal Co., Ltd. (26,904,000.00 RMB, 89.02% provision)[84] - Total accounts receivable with bad debt provision: 1,833,582,388.88 RMB, with 1,221,509,657.69 RMB provision[86] - Accounts receivable aged within 1 year: 5,939,459,175.20 RMB, accounting for 50.81% of total receivables[90] - Accounts receivable aged 1-2 years: 1,776,239,859.84 RMB, accounting for 15.20% of total receivables[90] - Accounts receivable aged 2-3 years: 1,199,479,136.82 RMB, accounting for 10.26% of total receivables[90] - Accounts receivable aged over 3 years: 2,774,443,650.81 RMB, accounting for 23.73% of total receivables[90] - Net bad debt provision for the period: -43,112,307.96 RMB[91] - Actual write-off of accounts receivable for the period: 13,798,267.80 RMB[91] Other Financial Metrics - Gross profit margin decreased to 10.72%, down 4.46 percentage points year-on-year, primarily due to lower contract prices for ongoing nuclear power projects[11] - The company's capital leverage ratio (non-current liabilities to total equity) decreased to 0.36:1 as of June 30, 2023, from 0.43:1 at the beginning of the period[14] - Total borrowings as of June 30, 2023, amounted to RMB 75.7334 billion, with RMB 58.3593 billion due within one year and RMB 17.3741 billion due after one year[15] - Contract liabilities increased by RMB 41.2302 billion to RMB 215.5146 billion as of June 30, 2023[15] - Fixed asset investments during the first half of 2023 totaled RMB 4.6728 billion, primarily allocated to nuclear power capacity enhancement and other key projects[16] - The company's foreign currency deposits amounted to approximately RMB 656.82 million as of June 30, 2023, with hedging strategies in place to mitigate exchange rate risks[17] - Unused funds from the 2017 domestic share subscription amounted to RMB 96 million as of June 30, 2023, with the remaining funds fully utilized[18] - The company employed 11,746 on-duty staff as of June 30, 2023, with a total payroll of RMB 777.94 million[23] - Total share capital as of June 30, 2023, is 1,706,523,000 shares, with state-owned legal person shares accounting for 60.41%[27] - The company has no contingent liabilities to external parties, with total guarantees for subsidiaries amounting to 11.5715 billion yuan[30] - Assets pledged for working capital loans amount to 887.9 million yuan as of June 30, 2023[31] - Total operating costs for the first half of 2023 were 13.54 billion RMB, a 21.5% increase compared to 11.14 billion RMB in the same period of 2022[43] - Other comprehensive income after tax for the first half of 2023 was -295,431,646.88 RMB, a significant decrease compared to 17,248,383.30 RMB in the same period of 2022[46] - Credit impairment losses for the period were RMB 29,824,106.66, compared to a loss of RMB -521,747,927.36 in the previous period[117] - Asset impairment losses totaled RMB -222,034,440.89, including inventory write-downs of RMB -20,048,274.85 and contract asset impairment losses of RMB -201,975,817.49[118] - The company did not recommend any interim dividend for the six months ended June 30, 2023[123] - Restricted assets included monetary funds of RMB 3,725,205,741.27, fixed assets of RMB 65,917,864.86, and intangible assets of RMB 23,171,998.13[120] - Purchases from companies under the same control amounted to RMB 15,038,031.44, a significant increase from RMB 546,192.21 in the previous period[128] - Service fee expenses to companies under the same control decreased slightly to RMB 14,068,821.06 from RMB 14,301,809.56[128] - Interest income from entrusted loans to companies under the same control surged to RMB 66,836,094.17 from RMB 2,905,660.38[131] - Key management personnel compensation increased to RMB 7,336,661.88 from RMB 2,469,186.00[134] - Technical development service fees from companies under the same control totaled RMB 22,238,207.60[136] - Short-term borrowings from the controlling company remained steady at RMB 3,997,091,932.96[140] - Accounts receivable from companies under the same control stood at RMB 591,992.00, down from RMB 6,106,792.00[137] - Other receivables from the controlling company increased to RMB 1,732,830.19 from RMB 154,650,000.00[137] - Contract assets from companies under the same control rose to RMB 3,040,000.00 from RMB 174,166.67[137] - Long-term payables to the controlling company remained unchanged at RMB 1,000,000.00[140] - Total internal group revenue is RMB 1,157,153,820.79[144] - The company has signed but not yet incurred large contract expenditures for asset construction totaling RMB 45,950,581.03 as of June 30, 2023[145] - Harbin Electric Corporation (Headquarters) has an unpaid contract amount of RMB 26,664,000.00, expected to be invested in 2023[146] - Harbin Turbine Factory Co., Ltd. has an unpaid contract amount of RMB 19,286,581.03, expected to be invested in 2023[146] - No significant contingent assets or post-balance sheet events were disclosed as of June 30, 2023[147]

Financial Performance - Total operating revenue for the first half of 2023 reached CNY 13,763,822,101.53, a 15.9% increase from CNY 11,872,287,698.97 in the same period of 2022[11]. - Net profit for the first half of 2023 was CNY 104,400,407.08, up 69.3% from CNY 61,597,562.48 in the first half of 2022[12]. - Operating profit for the first half of 2023 was CNY 105,346,974.95, slightly up from CNY 103,231,312.80 in the same period of 2022[12]. - The company reported a significant increase in other income, totaling CNY 74,503,689.18 in the first half of 2023, compared to CNY 25,355,852.87 in the first half of 2022[12]. - The company reported a net loss attributable to the parent company of RMB 191.03 million for the first half of 2023, contrasting with a profit of RMB 78.85 million in the same period of 2022[14]. - The total comprehensive income attributable to the parent company was RMB -191.03 million for the first half of 2023, compared to RMB 78.85 million in the same period of 2022, showing a decline[14]. - The company reported a decrease in other comprehensive income, with a total of RMB -210.54 million for the first half of 2023, compared to RMB 69.08 million in the same period of 2022[14]. - The net profit for the first half of 2023 was CNY 104,400,407.08, with a pre-tax profit of CNY 899,280,373.83, indicating strong operational performance[29]. - The company incurred total asset impairment losses of CNY -222,034,440.89 in the first half of 2023, compared to CNY -152,216,384.39 in the previous year[30]. Assets and Liabilities - As of June 30, 2023, the total current assets amounted to RMB 58.61 billion, an increase of 9.4% from RMB 53.52 billion as of December 31, 2022[3]. - The total assets of the company reached RMB 69.33 billion, an increase of 9.7% from RMB 63.28 billion as of December 31, 2022[5]. - The total liabilities as of June 30, 2023, were RMB 52.94 billion, which is an increase of 15.3% from RMB 45.86 billion at the end of 2022[7]. - Total liabilities increased to CNY 57,096,631,513.64 as of June 30, 2023, compared to CNY 50,909,668,579.12 at the end of 2022, reflecting a growth of 12.5%[10]. - The company's total non-current liabilities decreased to CNY 4,155,639,079.74 from CNY 5,050,832,100.07, indicating a reduction of 17.7%[10]. - The company's asset-liability ratio was 82.35% as of June 30, 2023, up from 80.45% at the beginning of the period[47]. - The total accounts receivable amounted to approximately ¥13.52 billion, with a bad debt provision of ¥4.98 billion, representing a provision ratio of 36.8%[34]. - Total accounts payable reached approximately ¥16.63 billion, an increase from ¥13.80 billion at the beginning of the period[38]. Cash Flow - The net cash flow from operating activities for the first half of 2023 was RMB 1.32 billion, compared to RMB 825.36 million in the same period of 2022, indicating a year-over-year increase of about 60.2%[15]. - The cash inflow from investment activities totaled RMB 594.84 million in the first half of 2023, compared to RMB 8.46 million in the same period of 2022, marking a substantial increase[16]. - The cash outflow from investment activities was RMB 913.74 million in the first half of 2023, compared to RMB 296.16 million in the same period of 2022, indicating a significant rise in investment expenditures[16]. - The company experienced a net cash flow from investment activities of RMB -318.89 million for the first half of 2023, slightly worsening from RMB -287.70 million in the same period of 2022[16]. - Cash inflow from financing activities totaled approximately ¥1.145 billion in the first half of 2023, a decrease of 51.1% compared to ¥2.343 billion in the same period of 2022[18]. - Cash outflow from financing activities was approximately ¥1.184 billion in the first half of 2023, down 30.0% from ¥1.690 billion in the first half of 2022[18]. - Net cash flow from financing activities was negative at approximately -¥38.85 million in the first half of 2023, contrasting with a positive cash flow of ¥653.53 million in the same period of 2022[18]. - The net increase in cash and cash equivalents for the first half of 2023 was approximately ¥976.66 million, compared to ¥1.203 billion in the first half of 2022, reflecting a decrease of 18.8%[18]. - The ending balance of cash and cash equivalents reached approximately ¥17.269 billion at the end of June 2023, up from ¥13.824 billion at the end of June 2022, marking an increase of 24.4%[18]. Equity and Shareholder Information - The company's total equity as of June 30, 2023, was RMB 16.39 billion, reflecting a growth of 5.2% from RMB 15.57 billion at the end of 2022[5]. - The total equity attributable to shareholders was approximately ¥12.375 billion at the end of June 2023, compared to ¥12.195 billion at the end of June 2022, indicating a growth of 1.5%[19]. - The company’s total equity attributable to the parent company decreased by 20,274 million yuan compared to the beginning of the year[40]. - The total share capital of the company as of June 30, 2023, was 1,706,523,000 shares, with state-owned legal person shares accounting for 60.41% of the total share capital[61]. - The company will not distribute an interim dividend for the six months ending June 30, 2023[57]. Research and Development - The company is focused on expanding its market presence and enhancing its product offerings through ongoing research and development efforts[24]. - Research and development expenses were 35,076 million yuan, an increase of 6,206 million yuan year-on-year[45]. - In the first half of 2023, the company's R&D investment intensity increased by 4%, focusing on key core technology breakthroughs and digital transformation[55]. - The company successfully established the "Digital Twin Key Technology Research and Application Innovation Platform" and received approval for the "Power Equipment Industry Digital Transformation Promotion Center" from the Ministry of Industry and Information Technology[56]. - The company has developed the "Hualong No. 1" nuclear power unit steam return valve, completing prototype manufacturing and internal testing[56]. Corporate Governance and Compliance - The company has complied with the Corporate Governance Code during the accounting period ending June 30, 2023, and has adopted best practices where appropriate[67]. - The company’s audit committee reviewed and approved the interim financial report for the six months ending June 30, 2023[68]. - There were no disclosures required under the Listing Rules as of June 30, 2023[70]. - The company held special and annual general meetings in Harbin, China, on April 12, 2023, and May 25, 2023, respectively[69]. - The company appointed a new executive director on May 25, 2023, following the resignation of a previous director due to reaching retirement age[67]. Market and Operational Strategy - The company operates in three main business segments: new energy-based power systems, green low-carbon drive systems, and clean efficient industrial systems, each requiring distinct technologies and market strategies[24]. - The company plans to enhance market share, expand order scale, and improve contract quality in the second half of 2023[59]. - The company aims to establish a risk management system and improve operational efficiency through lean management practices[59].

Financial Performance - In 2022, the total operating revenue reached RMB 24,643,794,000, an increase of 16.5% compared to RMB 21,225,313,000 in 2021[6] - The net profit attributable to shareholders of the parent company was RMB 98,638,000, a significant recovery from a loss of RMB 4,142,448,000 in 2021[6] - The company reported a total profit of RMB 205,777,000, recovering from a loss of RMB 4,200,267,000 in 2021[6] - Harbin Electric achieved a revenue of RMB 24.64 billion in 2022, representing a year-on-year growth of 16.11%[8] - The company reported a total profit of RMB 210 million, successfully turning losses into profits[8] - The company achieved a net profit margin of approximately 0.52% for the current period, a recovery from a negative margin in the previous period[150] - The company reported a significant increase in total comprehensive income, amounting to RMB 913,759,862.87, compared to a loss of RMB 588,289,885.95 in the previous period[153] Revenue Segmentation - The new power equipment segment generated revenue of RMB 11,745,985,000, contributing RMB 1,664,397,000 to operating profit, compared to RMB 8,872,291,000 and RMB 358,216,000 in 2021[7] - The clean and efficient industrial systems segment reported revenue of RMB 5,157,594,000, with an operating profit contribution of RMB 66,600,000, up from RMB 4,760,421,000 in 2021[7] - The revenue from new power equipment reached RMB 11.746 billion, accounting for 47.66% of total revenue, with a year-on-year growth of 32.39%[19] Assets and Liabilities - The total assets of the company increased to RMB 63,283,531,000, up from RMB 60,610,193,000 in the previous year, reflecting a growth of 4.4%[6] - The total liabilities increased to RMB 50,909,669,000 from RMB 48,415,507,000, indicating a rise of 5.2%[6] - The company had cash and cash equivalents of CNY 1,730,079 million, an increase of CNY 369,890 million from the beginning of the year[23] - The total current assets increased to RMB 53,524,009,263.78 from RMB 51,501,137,744.42, reflecting a growth of approximately 3.93%[137] - Total liabilities increased to RMB 50.91 billion from RMB 48.42 billion, representing a growth of about 5.2%[141] Research and Development - The company plans to enhance its R&D investment and strengthen its innovation capabilities to drive future growth[8] - The company’s R&D investment in 2022 was RMB 1.269 billion, with a research and development intensity of 5.20%[16] - The company signed contracts for 345 research projects and developed 166 new products in 2022[16] - The company is committed to increasing R&D investment and enhancing technological innovation capabilities to improve core competitiveness[31] Market Expansion and Strategy - The company aims to expand its international market presence, actively participating in the "Belt and Road" initiative[5] - The company plans to enhance its digital marketing strategy, aiming for a 25% increase in online sales[36] - Market expansion plans include entering two new international markets, aiming for a 10% market share within the first year[39] - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 2 billion RMB for potential mergers[34] Corporate Governance - The company’s governance structure was enhanced in 2022, complying with the Corporate Governance Code and continuously improving governance policies and practices[96] - The independent non-executive directors actively contributed to governance and decision-making, ensuring the protection of the company's and shareholders' interests[100] - The company plans to continue effective supervision in 2023, ensuring compliance with laws and regulations to protect the interests of the company and its shareholders[95] Sustainability and Environmental Responsibility - The management emphasized the importance of sustainability initiatives, targeting a 30% reduction in carbon emissions by 2025[35] - The company emphasizes its commitment to environmental responsibility and sustainable development, aligning with China's green transformation strategy[90] - The company is focused on developing clean energy technologies, including solar thermal power and tidal energy generation[5] Employee and Training Initiatives - The company organized 1,174 training sessions in 2022, totaling 64,200 training participants[50] - The company has 13,500 employees as of December 31, 2022, with 11,672 on duty, of which 16.42% are female[50] Financial Management and Audit - The audit report concluded that the financial statements fairly reflect the financial position and operating results of Harbin Electric as of December 31, 2022[124] - The financial statements for the year ended December 31, 2022, were audited by Dahua Accounting Firm, with an audit fee of RMB 2.2 million[92] - The company’s risk management and internal control systems were confirmed to be effective as of December 31, 2022, following a review and self-assessment[123] Future Outlook - In 2023, the company aims to achieve high-quality development with a focus on high-end, intelligent, and green manufacturing[9] - The company aims to achieve a total installed power generation capacity of approximately 2.81 billion kilowatts by the end of 2023, with non-fossil energy generation capacity reaching 1.48 billion kilowatts, accounting for about 52.5% of the total[31]

Financial Performance - The total operating revenue for the current period is RMB 24,984,261,415.23, an increase of 15.3% compared to RMB 21,569,761,574.55 in the previous period[11]. - The net profit attributable to the parent company is RMB 98,638,427.66, recovering from a net loss of RMB 4,142,448,248.42 in the previous period[13]. - The total operating costs decreased to RMB 24,746,152,616.39 from RMB 25,265,460,929.82, reflecting a reduction of 2.1%[12]. - The company reported a gross profit margin of approximately 0.95% for the current period, compared to a negative margin in the previous period[13]. - The company’s gross profit for the current period was RMB 2,863,430,498.86, compared to RMB -1,978,976,548.43 in the previous period, indicating a significant turnaround[30]. - The company's net profit margin improved, with the net profit margin for the current period calculated at approximately 0.4% compared to a negative margin in the previous year[31]. - The total profit for the current period was 20,577.67 million CNY, a recovery from a loss of -420,026.69 million CNY in the previous year[38][39]. - In 2022, the company achieved a net profit attributable to shareholders of RMB 98.64 million, an increase of RMB 4.24 billion year-on-year, with earnings per share of RMB 0.058[52]. Assets and Liabilities - As of December 31, 2022, total assets amounted to RMB 63.28 billion, an increase from RMB 60.61 billion on January 1, 2022, representing a growth of approximately 4%[4]. - The company's total liabilities increased to RMB 50.91 billion from RMB 48.42 billion, reflecting a growth of around 5%[8]. - Total current liabilities reached RMB 45.86 billion, up from RMB 44.45 billion, indicating an increase of approximately 3%[6]. - Long-term borrowings rose significantly to RMB 2.39 billion from RMB 1.03 billion, marking an increase of around 132%[8]. - The total non-current assets amounted to RMB 9.76 billion, up from RMB 9.11 billion, indicating a growth of approximately 7%[4]. - The total assets as of December 31, 2022, are RMB 63,283,530,532.06, an increase from RMB 60,610,193,220.67 at the beginning of the year[10]. - The total liabilities, including accounts payable, were RMB 13,796,665,716.93 at the end of the period, slightly down from RMB 13,875,963,319.42 at the beginning of the year[28]. Cash Flow - Operating cash inflow from sales of goods and services reached RMB 30.82 billion, up from RMB 24.51 billion in the previous period, representing a growth of approximately 25.4%[16]. - Net cash flow from operating activities amounted to RMB 28.42 billion, compared to RMB 25.01 billion in the prior period, indicating an increase of about 9.6%[17]. - The net increase in cash and cash equivalents for the period was RMB 3.66 billion, compared to RMB 1.32 billion in the previous period, marking an increase of approximately 176.5%[20]. - The ending balance of cash and cash equivalents stood at RMB 16.28 billion, up from RMB 12.62 billion at the end of the previous period, representing a growth of about 28.9%[20]. - Cash inflow from investment activities totaled RMB 817.87 million, significantly down from RMB 5.38 billion in the previous period, reflecting a decrease of approximately 84.8%[18]. - Cash outflow for investment activities was RMB 1.48 billion, compared to RMB 4.41 billion in the prior period, showing a reduction of about 66.5%[19]. Investments and R&D - Research and development expenses increased to RMB 726,641,980.52, up from RMB 670,530,779.51, indicating a growth of 8.4%[12]. - The company invested CNY 1.269 billion in technology in 2022, with a research and development intensity of 5.20%, completing 345 research projects and developing 166 new products[49]. - The company plans to increase the newly added non-fossil energy generation capacity to approximately 180 million kilowatts in 2023, contributing to a total new installed capacity of around 250 million kilowatts[89]. - The company emphasizes the importance of technological innovation and plans to significantly increase R&D investment to enhance core competitiveness[91]. Market and Growth Strategy - The company has plans for market expansion and new product development, although specific figures and timelines were not disclosed in the current report[21]. - The company aims to improve operational efficiency and risk control capabilities while pursuing high-quality development[90]. - The company is focused on building a world-class equipment manufacturing enterprise and aims to achieve high-level results[90]. - The company plans to accelerate the digitalization of production and the intelligence of equipment to create new advantages[91]. - The company anticipates that solar and wind power generation capacities will surpass hydropower generation capacity for the first time in 2023[89]. Shareholder Information - The board proposed a final dividend of RMB 0.006 per share, amounting to a total distribution of RMB 10,239,138.00, which represents 10.38% of the earnings per share for the year[42]. - The company’s equity attributable to shareholders was CNY 1,172,794 million, with a net asset value per share of CNY 6.87, an increase of CNY 0.09 from the beginning of the year[61]. - The company will withhold a 10% personal income tax for H-share individual shareholders from countries with a tax treaty with China[68]. Corporate Governance - The company confirmed the independence of all independent non-executive directors as per the Hong Kong Stock Exchange listing rules[70]. - The company has purchased directors' liability insurance for all directors during the year[74]. - The company has implemented a stock appreciation rights incentive plan to motivate key employees[75]. Challenges and Outlook - The company faced complex domestic and international challenges in 2022 but managed to maintain stable economic operations and improve development quality[43]. - The company plans to hold the annual general meeting on May 25, 2023, to discuss the proposed dividend distribution[42].

Financial Performance - For the six months ended June 30, 2022, the company achieved operating revenue of RMB 1,174,150 million, a year-on-year decrease of 0.56%[7] - The net profit attributable to the parent company was RMB 51,840 million, representing a year-on-year increase of 50.39%[7] - The gross profit reached RMB 178,179 million, up 41.67% year-on-year, with a gross margin of 15.18%, an increase of 4.52 percentage points[12] - Total revenue for the first half of 2022 was RMB 11,872,287,698.97, a slight decrease of 0.46% compared to RMB 11,927,880,095.72 in the same period of 2021[48] - Operating profit for the first half of 2022 was RMB 103,231,312.80, an increase of 52.73% from RMB 67,616,559.67 in the first half of 2021[51] - Net profit attributable to shareholders of the parent company for the first half of 2022 was RMB 51,835,303.42, up 50.73% from RMB 34,471,036.17 in the same period of 2021[53] - The company achieved a net profit margin of approximately 0.52% in the first half of 2022, compared to 0.37% in the same period of 2021, indicating improved profitability[53] - Total comprehensive income for the first half of 2022 reached RMB 78,845,945.78, a significant improvement from a loss of RMB 7,648,928.95 in the same period of 2021[56] Revenue and Orders - The total signed orders amounted to RMB 15,543 million, an increase of 73.61% compared to the same period last year[8] - Export orders reached RMB 2,901 million, a significant increase of 564.68% year-on-year[8] - Revenue from sales of goods and services amounted to RMB 11,698,804,483.53, up from RMB 10,465,262,095.18 in the first half of 2021, representing an increase of approximately 11.8%[57] - Revenue from domestic operations in China for the first half of 2022 was approximately RMB 9.39 billion, an increase from RMB 8.89 billion in the same period of 2021, representing a growth of about 5.7%[192] - Total overseas revenue decreased to approximately RMB 2.35 billion in the first half of 2022 from RMB 2.92 billion in the same period of 2021, a decline of about 19.5%[192] Assets and Liabilities - The company's total assets were RMB 62,187,530 million, an increase of 2.60% from the beginning of the period[15] - The total liabilities amounted to RMB 49,884,240 million, reflecting a growth of 3.03% compared to the beginning of the period[15] - The total current assets amounted to RMB 53.13 billion, an increase from RMB 51.50 billion as of December 31, 2021, reflecting a growth of approximately 3.16%[41] - The total liabilities increased to RMB 49.88 billion from RMB 48.42 billion, representing a growth of about 3.02%[45] - Long-term borrowings surged to RMB 2.27 billion from RMB 1.03 billion, indicating a significant increase of approximately 119.99%[45] Cash Flow - The net cash flow from operating activities during the period was RMB 82,536,000, while cash flow from investing activities was -RMB 28,770,000, and cash flow from financing activities was RMB 65,353,000[9] - The company reported a net increase in customer deposits and interbank deposits of RMB 20,804,715.81, contrasting with a decrease of RMB -130,499,825.05 in the first half of 2021[57] - The net cash flow from operating activities was RMB 825,359,071.13, a recovery from a negative cash flow of RMB -1,276,408,835.48 in the first half of 2021[59] - Cash inflow from financing activities totaled RMB 2,343,364,802.75, compared to RMB 1,159,416,283.33 in the same period last year, indicating a growth of approximately 102%[61] - The net increase in cash and cash equivalents for the first half of 2022 was RMB 1,202,775,281.46, compared to a decrease of RMB 359,748,671.24 in the same period of 2021, indicating a significant improvement in cash flow[62] Investments and Capital Expenditures - The company completed fixed asset investments of RMB 21,468,510 during the first half of 2022, primarily for biomass cogeneration projects and technological upgrades for subsidiaries[19] - The company incurred capital expenditures of RMB 202,334,500.10 in the first half of 2022, down from RMB 231,888,860.89 in the same period of 2021, reflecting a decrease of about 12.7%[152] - The company has no significant changes in its investment plans for 2022 and did not hold any major investments or acquisitions during the period[19] Employee and Compensation - The company has a total of 11,704 employees as of June 30, 2022, with total compensation amounting to RMB 71,987,000[25] Corporate Governance and Compliance - The company has adopted the Corporate Governance Code and confirmed compliance by all directors during the reporting period[33] - The audit committee has reviewed and approved the interim performance report for the six months ending June 30, 2022[37] - The company has maintained its accounting policies in accordance with the current enterprise accounting standards, ensuring the financial statements reflect a true and complete picture of its financial status[96] - The company has not identified any significant doubts regarding its ability to continue as a going concern for the next 12 months[95] Research and Development - The company has actively participated in the development of innovative products, including the world's first compressed air energy storage power station and the largest single-unit capacity hydropower station in the country[24] - Research and development expenses for the first half of 2022 were RMB 288,693,577.35, slightly up from RMB 280,898,742.51 in the same period of 2021[48] Taxation - The applicable tax rates include VAT at 3%, 6%, 9%, 10%, and 13%, and corporate income tax rates of 15% and 25%[122] - The company benefits from a reduced corporate income tax rate of 15% as a high-tech enterprise, while other subsidiaries in China are subject to a 25% tax rate[51] Accounts Receivable and Provisions - As of June 30, 2022, the total accounts receivable amounted to RMB 12,815,972,406.77, with a significant increase of 39.32% compared to RMB 5,038,916,455.52 as of December 31, 2021[126] - The provision for bad debts for accounts receivable was RMB 978,985,303.57, representing 13.12% of the total accounts receivable[126] - The expected credit loss rate for accounts aged within one year is 41.37%, down from 44.34% in the previous year[138] - The total other receivables as of June 30, 2022, is CNY 1,561,938,249.16, an increase from CNY 1,320,694,485.73 as of December 31, 2021[139] - The provision for bad debts for other receivables classified by credit risk characteristics is CNY 302,302,510.34, with an expected credit loss rate of 21.76%[144]