Financial Performance - For the six months ended June 30, 2024, the total revenue was RMB 2,619,532,000, an increase from RMB 2,249,808,000 in the same period of 2023, representing a growth of approximately 16.4%[1] - The gross profit for the same period was RMB 109,869,000, compared to RMB 107,160,000 in the previous year, indicating a slight increase of about 2.5%[1] - The net profit for the period was RMB 22,125,000, up from RMB 21,742,000 year-on-year, reflecting a growth of approximately 1.8%[2] - The total comprehensive income for the period was RMB 22,125,000, compared to RMB 21,764,000 in the previous year, indicating a slight increase of about 1.7%[2] - The net profit before tax for the six months ended June 30, 2024, was RMB 23,811 thousand, compared to RMB 25,267 thousand for the same period in 2023, showing a decline of 5.8%[11] - The group recorded an unaudited profit attributable to the owners of the company of approximately RMB 22.13 million in the first half of 2024, an increase of about 1.79% compared to RMB 21.74 million in the same period last year[46] - The group's unaudited pre-tax profit decreased by approximately 5.76% from RMB 25.27 million in the first half of 2023 to RMB 23.81 million in the first half of 2024, primarily due to increased selling and distribution expenses, administrative expenses, and research and development costs[45] Revenue Breakdown - The revenue from gasoline engines was RMB 2,174,521 thousand, up from RMB 1,809,884 thousand, reflecting a growth of 20.2% year-over-year[11] - Diesel engine revenue increased to RMB 46,652 thousand from RMB 40,215 thousand, marking a growth of 15.4%[11] - The revenue from engine parts was RMB 398,359 thousand, slightly down from RMB 399,709 thousand, indicating a decrease of 0.3%[11] - Other income for the six months ended June 30, 2024, was RMB 26,748 thousand, compared to RMB 11,508 thousand for the same period in 2023, reflecting a substantial increase of 132.5%[11] - Total revenue from government subsidies increased to RMB 11,226,000, up from RMB 2,954,000 year-over-year, representing a growth of 278%[16] Assets and Liabilities - Total assets decreased to RMB 5,081,466,000 as of June 30, 2024, down from RMB 5,501,103,000 at the end of 2023, a decline of about 7.6%[3] - Current liabilities decreased to RMB 2,963,860,000 from RMB 3,308,163,000, showing a reduction of approximately 10.4%[4] - The company reported a net current liability of RMB 240,428,000, improving from RMB 295,690,000 in the previous period[5] - The company’s total assets related to right-of-use assets were approximately RMB 355,752,000 as of June 30, 2024, down from RMB 406,574,000 as of December 31, 2023[24] - As of June 30, 2024, net trade receivables amounted to RMB 1,920,653 thousand, a decrease from RMB 2,281,122 thousand as of December 31, 2023, representing a decline of approximately 15.8%[25] - The total trade receivables, net of expected credit losses, were RMB 2,012,011 thousand as of June 30, 2024, compared to RMB 2,369,834 thousand as of December 31, 2023, reflecting a decrease of about 15.1%[25] Cash Flow and Financing - The company anticipates sufficient cash resources to meet operational funding and financial obligations for the next 12 months, contingent on generating adequate financing and operational cash flow[6] - The company is currently negotiating with financial institutions for the renewal of short-term bank loans and new financing options to improve liquidity[5] - As of June 30, 2024, the group's bank balances and cash amounted to approximately RMB 41.37 million, an increase from RMB 23.84 million as of December 31, 2023[47] Cost Management - The company is implementing cost control measures to manage production costs and expenses effectively[5] - Employee costs totaled RMB 62,663,000, slightly up from RMB 62,048,000 in the previous year, indicating a 1% increase[18] - The company’s total depreciation and amortization expenses were RMB 130,908,000, up from RMB 124,840,000 year-over-year, marking a 4.3% increase[18] Shareholder and Governance - The major shareholder, Brilliance China Automotive Holdings Limited, has committed to providing ongoing financial support for the next 12 months[5] - The board does not recommend any interim dividend for the six months ending June 30, 2024, consistent with no interim dividend for the six months ending June 30, 2023[57] - The company has adhered to all provisions of the Corporate Governance Code as of June 30, 2024[58] - The Audit Committee has reviewed the accounting principles and practices adopted by the group, discussing matters related to audit, internal controls, and financial reporting for the six months ending June 30, 2024[59] - The board consists of two executive directors, two non-executive directors, and three independent non-executive directors as of the announcement date[60] Market Trends - In the first half of 2024, China's GDP grew by 5% year-on-year, driven by strong industrial output and service sector indicators[54] - Sales in the passenger vehicle segment of the Chinese automotive sector increased by 6.3% year-on-year, while commercial vehicle sales grew by 4.9%[54] - The total sales of new energy vehicles (NEVs) reached 4.94 million units, representing a year-on-year increase of 31.7%, accounting for approximately 35.2% of total sales in the first half of 2024[54] - The group anticipates that the joint venture will continue to serve as a long-term strategic platform for providing quality and stable incremental gasoline engine supply in the coming years[55] - The automotive market in China is expected to achieve approximately 3% year-on-year growth in 2024, reaching a new sales volume of 30 million vehicles[56]

Financial Performance - The company recorded a profit before tax of approximately RMB 48.52 million in 2023, compared to a loss of approximately RMB 110.73 million in 2022[13]. - The net profit attributable to the owners of the company for 2023 was approximately RMB 41.07 million, a significant improvement from a net loss of approximately RMB 115.83 million in 2022[14]. - Basic earnings per share for 2023 were approximately RMB 0.032, compared to a basic loss per share of approximately RMB 0.09 in 2022[14]. - The overall cost of sales for 2023 was approximately RMB 5.16496 billion, a 233.20% increase from about RMB 1.55009 billion in 2022, attributed to increased sales of range extenders[80]. - The company recorded a total consolidated sales of approximately RMB 5.34083 billion in 2023, an increase of about 223.20% compared to RMB 1.65248 billion in 2022, primarily due to increased sales of range extenders[80]. Assets and Liabilities - As of December 31, 2023, the total assets of the group were approximately RMB 5.5011 billion, an increase from RMB 4.1561 billion as of December 31, 2022[16]. - The group's cash and cash equivalents as of December 31, 2023, were approximately RMB 23.84 million, down from RMB 59.06 million as of December 31, 2022[15]. - The debt-to-equity ratio as of December 31, 2023, was approximately 2.21, up from 1.48 as of December 31, 2022, primarily due to increased payables related to the purchase of enhancers[20]. - The capital commitments of the group as of December 31, 2023, were approximately RMB 127.28 million, a decrease from RMB 350.73 million as of December 31, 2022[24]. Workforce and Employment - The group employed approximately 964 employees as of December 31, 2023, down from approximately 998 employees as of December 31, 2022[23]. Leadership and Governance - The company has over 29 years of experience in the automotive industry, focusing on overall strategic planning and business development[27]. - The new CEO has over 23 years of experience in the automotive sector, previously serving as General Manager of a subsidiary[28]. - The company has appointed a new non-executive director with extensive experience in the aviation and automotive industries[29]. - The independent non-executive director has been involved in various academic and professional roles, contributing to financial management and auditing[31]. - The company is actively expanding its leadership team with experienced professionals to enhance strategic direction and operational efficiency[27][28][29]. Research and Development - The company has a strong focus on research and development in new technologies to drive future growth[31]. - The company is investing $50 million in R&D for new technologies aimed at enhancing product efficiency and sustainability[41]. - The company is committed to enhancing R&D capabilities and broadening product models to keep pace with automotive market advancements[54]. Market Expansion and Strategy - The company is exploring market expansion opportunities to increase its competitive edge in the automotive sector[28]. - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[35]. - Market expansion plans include entering three new international markets by the end of the fiscal year, targeting a 10% increase in global market share[43]. - The company has completed a strategic acquisition of a competitor, which is expected to increase annual revenue by approximately $20 million[42]. - New product lines are set to launch in Q3 2024, with anticipated sales contributing an additional 5% to overall revenue[40]. Customer and Product Performance - Customer satisfaction ratings improved to 90%, reflecting the success of recent quality management initiatives[38]. - The company achieved a 30% increase in production efficiency through recent operational improvements[39]. - The engine business segment recorded a revenue increase of approximately 358.17%, rising from about RMB 1.01515 billion in 2022 to approximately RMB 4.65114 billion in 2023[75]. - Engine sales increased by approximately 382.08%, from about 86,500 units in 2022 to approximately 417,000 units in 2023, primarily due to increased sales of range extenders[75]. Compliance and Regulations - The company has complied with all relevant environmental protection laws and regulations, establishing necessary facilities for waste disposal and environmental protection[57]. - The company has maintained compliance with all relevant laws and regulations in China and Hong Kong as of December 31, 2023[58]. - The independent non-executive directors confirmed that the internal control procedures are effective and that the related party transactions are fair and reasonable[140]. - The company has complied with the disclosure requirements under Chapter 14A of the Listing Rules[143]. Related Party Transactions - The actual monetary value of related party transactions for the fiscal year ending December 31, 2023, includes procurement of engine components from Huachen China and its subsidiaries amounting to RMB 2,784,000[126]. - Sales of engines and engine components to Huachen China and its subsidiaries totaled RMB 27,000 for the same fiscal year[126]. - The procurement from Wuliangye and its subsidiaries, including Xinhua Internal Combustion Engine, amounted to RMB 55,618,000[126]. Corporate Governance - The company has established corporate governance practices to align with the corporate governance code[149]. - The board consists of eight members: two executive directors, two non-executive directors, and four independent non-executive directors, meeting the minimum requirements under listing rules[159]. - The average attendance rate of the board of directors was 98% in 2023, with all independent non-executive directors achieving 100% attendance[156]. - The company held five board meetings in 2023, with several matters approved through written resolutions[156].

Financial Performance - For the fiscal year ending December 31, 2023, the company reported total revenue of RMB 5,340,830,000, a significant increase from RMB 1,652,481,000 in the previous year, representing a growth of approximately 223%[11] - The gross profit for the same period was RMB 175,866,000, compared to RMB 102,392,000 in the prior year, indicating a year-over-year increase of about 72%[11] - The company recorded a net profit of RMB 41,071,000 for the year, a recovery from a net loss of RMB 115,829,000 in the previous year[11] - Other income rose to RMB 50,591,000, up from RMB 24,978,000, reflecting an increase of approximately 103%[11] - The total comprehensive income for the year was RMB 41,093,000, compared to a loss of RMB 115,690,000 in the previous year, marking a significant turnaround[12] - The company reported a pre-tax profit of RMB 48,515,000 in 2023, a significant improvement from a loss of RMB 110,731,000 in 2022[79] - The profit attributable to the owners of the company for 2023 was approximately RMB 41.07 million, while the net loss for the year ended December 31, 2022, was approximately RMB 115.83 million[134] Revenue Breakdown - Total revenue from external customers reached RMB 5,340,830 thousand, with segment revenue contributions of RMB 4,556,025 thousand from gasoline engines, RMB 95,117 thousand from diesel engines, and RMB 689,688 thousand from engine components[25] - Customer A generated revenue of RMB 2,926,932 thousand in 2023, a significant increase from RMB 724,135 thousand in 2022[31] - Revenue from the engine components segment increased by approximately 8.22% from RMB 637.33 million in 2022 to RMB 689.69 million in 2023, primarily due to increased production and supply of Bx8 crankshafts and connecting rods to BMW Brilliance[129] - The engine business segment recorded a revenue increase of approximately 358.17%, rising from about RMB 1.015 billion in 2022 to approximately RMB 4.651 billion in 2023[154] Costs and Expenses - The company reported a total of RMB 5,100,978,000 in cost of goods sold for the year, a significant increase from RMB 1,498,723,000 in the previous year[80] - The sales cost for 2023 was approximately RMB 5.16496 billion, representing an increase of about 233.20% from approximately RMB 1.55009 billion in 2022, attributed to the rise in range extender sales[102] - Sales and distribution expenses rose by approximately 64.03% from RMB 12.37 million in 2022 to RMB 20.29 million in 2023, accounting for approximately 0.75% and 0.38% of revenue in 2022 and 2023, respectively[131] - Other expenses increased significantly by approximately 332.94% from RMB 12.61 million in 2022 to RMB 54.49 million in 2023, mainly due to increased general research expenses[132] Assets and Liabilities - The total assets minus current liabilities amounted to RMB 2,192,940 thousand in 2023, compared to RMB 2,340,466 thousand in 2022[35] - Non-current assets were valued at RMB 2,488,630 thousand in 2023, down from RMB 2,668,042 thousand in 2022[34] - The company’s net current liabilities decreased to RMB 295,690 thousand in 2023 from RMB 327,576 thousand in 2022[35] - The total liabilities were approximately RMB 378.50 million as of December 31, 2023, up 52.5% from RMB 248.12 million on December 31, 2022[162] - The debt-to-equity ratio increased to 2.21 as of December 31, 2023, compared to 1.48 on December 31, 2022, primarily due to increased payables related to trading[164] Governance and Compliance - The company maintained compliance with all corporate governance codes as of December 31, 2023, ensuring adherence to high standards of corporate governance[2] - The board of directors includes two executive directors and four independent non-executive directors, ensuring a balanced governance structure[5] Market and Industry Trends - The demand for plug-in hybrid vehicles grew by 85% to 2.81 million units, while pure electric vehicle sales increased by 25% to 6.68 million units, reflecting the robust growth of the NEV market in China[98] - The company is optimistic about the automotive industry's future, with NEV sales expected to rise to over 50% of total vehicle sales by 2035[125] - The sales of new energy vehicles (NEVs) increased by 37.9% year-on-year to 9.49 million units, accounting for about 31.5% of the total national sales in 2023[150] Research and Development - Research and development costs recognized as other expenses surged to RMB 34,248,000 in 2023, compared to RMB 9,718,000 in 2022, indicating a growth of 252.5%[80] - The company has developed NEV-compatible CE engines for the new generation of NEV range extenders, addressing the challenges of charging infrastructure[126] Financial Management - The company had available and undrawn bank financing of RMB 193,048,000 as of December 31, 2023, indicating strong liquidity support for future operations[20] - The company is actively engaging with financial institutions for refinancing and new borrowings, demonstrating proactive financial management strategies[20] - Major shareholder Brilliance China has committed to providing ongoing financial support to the group for a period of 12 months from the date of board approval of the consolidated financial statements[41] Shareholder Returns - The company has not declared or paid any dividends for the years ended December 31, 2023, and 2022[58] - The group does not recommend any dividend distribution for the year ended December 31, 2023[170]

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 2,249,808 thousand, compared to RMB 490,468 thousand for the same period in 2022, representing a significant increase [8]. - Gross profit for the period was RMB 107,160 thousand, with a gross margin improvement compared to the previous period [3]. - The net profit for the six months ended June 30, 2023, was RMB 21,742 thousand, a turnaround from a loss of RMB 37,773 thousand in the same period last year [9]. - Basic earnings per share for the period was RMB 0.017, compared to a loss per share of RMB 0.029 in the same period last year [11]. - For the six months ending June 30, 2023, the company reported a pre-tax profit of RMB 25,267,000, compared to a loss of RMB 35,041,000 in the same period last year [32]. - The company reported a profit attributable to owners of the company of RMB 21,742,000 for the six months ended June 30, 2023, compared to a loss of RMB 37,773,000 in the same period of 2022, marking a turnaround in performance [43]. - The company recorded an unaudited profit before tax for the first half of 2023 was approximately RMB 25.27 million, a turnaround from an unaudited loss of RMB 35.04 million in the first half of 2022, mainly due to business growth post-COVID and increased profits from an associated company [143]. Assets and Liabilities - Total assets increased to RMB 5,428,139 thousand as of June 30, 2023, compared to RMB 4,156,131 thousand at the end of 2022 [12]. - The company reported a significant increase in trade and other receivables, amounting to RMB 2,180,396 thousand, up from RMB 783,560 thousand in the previous year [12]. - As of June 30, 2023, the company's current liabilities net amount was approximately RMB 288,027,000, but the financial statements were prepared on a going concern basis [34]. - The company has committed to providing ongoing financial support for the next 12 months to maintain its operations [35]. - The total amount of trade payables and notes payable was RMB 541.80 million as of June 30, 2023, compared to RMB 496.75 million as of December 31, 2022, reflecting an increase of about 9.06% [83]. - The company’s total liabilities increased, with trade payables and other payables showing a notable rise in the current period [70]. Cash Flow and Financing - Cash and cash equivalents decreased to RMB 43,710 thousand from RMB 59,059 thousand at the beginning of the period, reflecting cash flow challenges [20]. - Financing costs increased to RMB 30,958 thousand from RMB 28,204 thousand year-on-year, indicating rising interest expenses [3]. - The company obtained new bank borrowings of approximately RMB 274.05 million during the reporting period, with interest rates ranging from 4.40% to 6.50% [88]. - The company has pledged approximately RMB 128.98 million in bank deposits as of June 30, 2023, compared to RMB 135.13 million as of December 31, 2022, to secure credit financing [195]. Operational Highlights - The sales volume of engines increased by approximately 1,055.56% from about 13,500 units in the first half of 2022 to approximately 156,000 units in the first half of 2023, primarily due to the increase in sales of range-extended gasoline engines [97]. - The company sold approximately 949,000 connecting rods in the first half of 2023, representing an increase of about 120.80% compared to approximately 429,800 units sold in the same period of 2022 [98]. - The engine business segment recorded a revenue increase of approximately 989.7%, rising from RMB 169.78 million in the first half of 2022 to RMB 1.8501 billion in the first half of 2023, primarily due to increased sales of range-extended gasoline engines [139]. Employee and Administrative Costs - Total employee costs increased to RMB 62,048,000 in the first half of 2023 from RMB 56,198,000 in the same period of 2022, reflecting a rise of 10.0% [51]. - Administrative expenses increased by approximately 50.98% to RMB 73.57 million in the first half of 2023, accounting for approximately 3.27% of revenue, primarily due to increased research and office expenses [122]. Corporate Governance - The company has adhered to all provisions of the Corporate Governance Code during the reporting period [181]. - The audit committee, along with management, reviewed the accounting principles and practices adopted by the group for the six months ended June 30, 2023 [183]. - The company has confirmed compliance with the standards for securities trading by its directors during the reporting period [182]. - The company continues to focus on maintaining the highest level of corporate governance to meet business needs and shareholder expectations [181]. Investment and Development - The company invested approximately RMB 9,631,000 in the development of new automotive engine technology during the reporting period [75]. - The company has made significant investments in construction projects amounting to approximately RMB 11,256,000 during the reporting period, down from RMB 24,079,000 in the same period of the previous year [43]. - The company plans to expand its product range in gasoline and diesel engines, supported by the recent investment in technology development [75]. Stock Options and Shareholder Information - A new stock option plan was adopted on June 19, 2023, allowing a maximum of 10% of issued shares to be granted as options [158]. - The new stock option plan allows for the issuance of up to 128,221,179 stock options as of June 30, 2023 [172]. - The company has not recognized any expenses related to stock options for the current reporting period [159]. - As of June 30, 2023, the company had 1,282,211,794 shares issued, with major shareholders holding approximately 31.20% each [164][174].

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，概不對因本公佈全 部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 XINCHEN CHINA POWER HOLDINGS LIMITED 新 晨 中 國 動 力 控 股 有 限 公司 （於開曼群島註冊成立的有限公司） （股份代號：1148） 截至二零二三年六月三十日止六個月之 未經審核中期業績公佈 新晨中國動力控股有限公司（「本公司」）董事會（「董事會」）公佈本公司及其 附屬公司（ 統稱為「本集團」）截至二零二三年六月三十日止六個月之未經審核 綜合中期財務業績如下： 簡明綜合損益及其他全面收益表 截至二零二三年六月三十日止六個月 截至以下日期止六個月 二零二三年 二零二二年 六月三十日 六月三十日 附註 人民幣千元 人民幣千元 （ 未經審核）（ 未經審核） 收益 3 2,249,808 490,468 銷售成本 (2,142,648) (460,617) 毛利 107,160 29,851 其他收入 4 11,508 5,783 ...

Financial Performance - The company's revenue for the year ended December 31, 2022, was RMB 1,652,481 thousand, an increase of 13.0% compared to RMB 1,462,777 thousand in 2021[7]. - The net loss attributable to shareholders for 2022 was RMB 115,690 thousand, a reduction from a loss of RMB 392,934 thousand in 2021, indicating an improvement in financial performance[7]. - The company recorded total sales of approximately RMB 1.65248 billion in 2022, an increase of about 12.97% compared to RMB 1.46278 billion in 2021[15]. - The gross profit margin improved from approximately 5.23% in 2021 to about 6.19% in 2022, attributed to a higher sales proportion of the more profitable engine components business[22]. - The pre-tax loss for 2021 was approximately RMB 399.66 million, while the pre-tax loss for 2022 was approximately RMB 110.73 million[26]. - The loss attributable to equity holders of the company for 2022 was approximately RMB 115.83 million, compared to a net loss of approximately RMB 392.77 million for 2021[26]. - Other income and losses increased from approximately RMB 5.07 million in 2021 to approximately RMB 11.53 million in 2022, primarily due to gains from the sale of production lines in 2022[23]. - Sales and distribution expenses decreased by approximately 28.87% from approximately RMB 17.39 million in 2021 to approximately RMB 12.37 million in 2022, accounting for about 1.19% and 0.75% of revenue in 2021 and 2022 respectively[23]. - Administrative expenses decreased by approximately 27.74% from approximately RMB 199.13 million in 2021 to approximately RMB 143.88 million in 2022, representing about 13.61% and 8.71% of revenue in 2021 and 2022 respectively[23]. Market Trends - The sales volume of new energy vehicles (NEVs) in China surged by 93.4% in 2022, reaching approximately 6.88 million units, which accounted for about 25.6% of total vehicle sales[9]. - The sales volume of passenger cars in China increased by 9.5% in 2022, reaching approximately 23.5 million units, despite challenges in the automotive industry[9]. - The Chinese government has reduced the value-added tax on used cars to 0.5% until the end of 2023, aiming to stimulate the automotive industry[10]. - The Chinese automotive market showed resilience in 2022, with a penetration rate of over 25% for new energy vehicles and total exports expected to exceed 3 million units[61]. - The market share of Chinese self-owned brands reached 50% in 2022, driven by national consumption policies and rapid development of new energy vehicles[61]. Product Development and Innovation - The company has developed a NEV-compatible CE engine, which began industrial production in 2022, to adapt to the evolving automotive market in China[13]. - The company expects to industrialize the production of new hybrid engines starting in 2023, which comply with "National VI" emission standards[14]. - The company is committed to enhancing its product offerings through continuous innovation and development[50]. - The company is actively involved in the development of new automotive technologies and components, which is crucial for market competitiveness[50]. - The company aims to enhance market share through product technology improvements and expanding its product portfolio, particularly in the new energy vehicle sector[61]. Strategic Partnerships and Market Expansion - The joint venture with Li Auto is expected to leverage the growing NEV market, supported by government subsidies and favorable policies[11]. - The company is exploring partnerships with other NEV manufacturers to expand its market presence in the burgeoning NEV sector[11]. - The company aims to explore potential merger and acquisition opportunities and assess the possibility of forming joint ventures to expand its product portfolio and enhance core competitiveness[18]. Financial Position and Assets - The company reported non-current assets of RMB 2,668,042 thousand and current assets of RMB 1,488,089 thousand as of December 31, 2022[7]. - The total equity attributable to shareholders decreased to RMB 1,674,926 thousand from RMB 1,790,616 thousand in 2021, reflecting the impact of losses[7]. - As of December 31, 2022, the group's cash and cash equivalents were approximately RMB 59.06 million, up from RMB 12.85 million as of December 31, 2021[27]. - The total assets as of December 31, 2022, were approximately RMB 4.156 billion, an increase from RMB 3.9648 billion as of December 31, 2021[28]. - The debt-to-equity ratio as of December 31, 2022, was approximately 1.48, up from 1.21 as of December 31, 2021, primarily due to an increase in lease liabilities[31]. Governance and Compliance - The company has appointed independent non-executive directors with extensive experience in finance and law, enhancing governance and compliance[44][45]. - The company has established a strong foundation in internal controls and risk management, which is essential for sustainable operations[45]. - The company has complied with all relevant laws and regulations in China and Hong Kong as of December 31, 2022[66]. - The company has established necessary environmental protection facilities and has successfully passed environmental inspections conducted by monitoring centers[65]. - The company has maintained compliance with all provisions of the Corporate Governance Code during the accounting year ending December 31, 2022[137]. Risk Management - The company is exposed to financial risks, including exchange rate risks from USD-denominated loans, and will continue to monitor and potentially hedge these risks[60]. - The company has identified various risks, including market competition and regulatory risks, which could impact its performance[64]. - The company has implemented a risk management policy to assess and manage risks effectively[176]. - The internal audit function has been established to review the adequacy and effectiveness of the group's risk management and internal control systems[182]. - The risk management and internal control systems focus on strategic, financial, market, operational, and compliance risks, with a systematic approach to identifying and managing these risks[183]. Shareholder and Director Information - Major shareholders include Huachen Investment, Huachen China, and others, each holding 400,000,000 shares, which accounts for approximately 31.20% of the total shares[91]. - As of December 31, 2022, the total issued shares of the company were 1,282,211,794[95]. - The board of directors includes Wu Xiaoan (Chairman) and Wang Yunxian (CEO), with upcoming re-election at the annual general meeting on June 19, 2023[86][88]. - The company has a significant reliance on its top customers, with the top five customers accounting for approximately 92% of total revenue, and the largest customer contributing about 44% of total revenue[108]. - The company has established non-competition agreements with its major shareholders, ensuring they will not engage in competing businesses[113]. Employee and Organizational Development - The company conducts annual employee satisfaction surveys to gather feedback for improving work efficiency and creating a harmonious work environment[69]. - The company has been actively improving its training system and collaborating with educational institutions to build a talent pipeline for sustainable development[69]. - The company has implemented a performance-oriented compensation mechanism to align salaries with job value and business performance[69]. - The management team has over 22 years of experience in the automotive industry, focusing on R&D and sales, indicating strong leadership in product development[48]. Related Party Transactions - The actual monetary value of related party transactions for the fiscal year ending December 31, 2022, included RMB 2,105,000 for purchasing engine parts from Huachen China and RMB 764,000 for sales of engines and parts[117]. - The company entered into a procurement framework agreement with Huachen China for engine parts, with a maximum annual transaction limit of RMB 3,600,000 for the fiscal year ending December 31, 2022[118]. - The sales framework agreement with Huachen China has a maximum annual transaction limit of RMB 409,000,000 for the fiscal year ending December 31, 2022[121]. - The company has confirmed that all related party transactions comply with the listing rules[117].

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，概不對因本公佈全 部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 XINCHEN CHINA POWER HOLDINGS LIMITED 新 晨 中 國 動 力 控 股 有 限 公司 （於開曼群島註冊成立的有限公司） （股份代號：1148） 截至二零二二年十二月三十一日止年度之 業績公佈 新晨中國動力控股有限公司（「本公司」）董事會（「董事會」）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之經審核 綜合財務業績如下： 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 二零二二年 二零二一年 附註 人民幣千元 人民幣千元 收益 4 1,652,481 1,462,777 銷售成本 (1,550,089) (1,386,340) 毛利 102,392 76,437 其他收入 5 24,978 109,204 ...

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 490,468,000, a decrease of 47.8% compared to RMB 939,319,000 for the same period in 2021[4] - Gross profit for the same period was RMB 29,851,000, down 74.3% from RMB 116,124,000 in 2021[4] - The company reported a net loss of RMB 37,773,000 for the six months ended June 30, 2022, compared to a profit of RMB 32,121,000 in the previous year[4] - The basic loss per share for the period was RMB (0.029), compared to earnings per share of RMB 0.025 in the previous year[4] - The company recorded a pre-tax loss of RMB 35,041,000 for the six months ended June 30, 2022, compared to a profit of RMB 31,290,000 in the same period of 2021[15] - The company recorded an unaudited loss attributable to owners of the company of approximately RMB 37.77 million for the first half of 2022, compared to a profit of RMB 32.12 million in the same period of 2021[95] Assets and Liabilities - Total assets as of June 30, 2022, were RMB 3,826,354,000, a decrease from RMB 3,964,825,000 as of December 31, 2021[6] - Current liabilities decreased to RMB 1,913,822,000 from RMB 1,974,757,000 in the previous year[9] - The total liabilities, including trade and other payables, decreased from RMB 751,485,000 as of December 31, 2021, to RMB 657,042,000 as of June 30, 2022, a reduction of approximately 12.5%[64] - The group’s total liabilities to equity ratio decreased to approximately 1.18 as of June 30, 2022, down from 1.21 as of December 31, 2021, primarily due to a reduction in payables[99] Cash Flow and Investments - The company’s cash and cash equivalents increased to RMB 81,204,000 from RMB 12,853,000 as of December 31, 2021[6] - Net cash generated from operating activities for the six months ended June 30, 2022, was RMB 5,904,000, significantly down from RMB 641,425,000 in the previous year[15] - Net cash from investing activities for the six months ended June 30, 2022, was RMB 76,811,000, a decrease of 61.1% compared to RMB 197,621,000 in the same period of 2021[15] - The company’s net cash used in financing activities for the six months ended June 30, 2022, was RMB 14,364,000, a significant improvement compared to RMB 410,453,000 in the previous year[24] Inventory and Receivables - Inventory as of June 30, 2022, was RMB 492,405,000, an increase from RMB 471,886,000 in the previous year[6] - Trade receivables amounted to RMB 101,855,000, a decrease from RMB 150,557,000 as of December 31, 2021, indicating a decline of approximately 32.3%[61] - The expected credit loss recognized for trade receivables was RMB 363,952,000 as of June 30, 2022, compared to RMB 363,876,000 as of December 31, 2021, showing a slight increase[59] Revenue by Segment - The gasoline engine segment generated revenue of RMB 128,652 thousand, down 60.2% from RMB 322,999 thousand in the previous year[36] - The diesel engine and engine parts segment reported revenue of RMB 41,125 thousand and RMB 320,691 thousand respectively, compared to RMB 23,255 thousand and RMB 593,065 thousand in the prior year, indicating a significant decline[36] - The company's segment revenue from engine business dropped by approximately 50.97%, from RMB 346.25 million in the first half of 2021 to RMB 169.78 million in the first half of 2022[91] Operational Changes - The group recorded a decrease in sales primarily due to a significant drop in traditional gasoline engine sales, attributed to a core customer undergoing restructuring[110] - The group anticipates that the reduction in vehicle purchase tax for cars priced below RMB 300,000 will benefit over 10 million vehicles, potentially increasing sales by 1.5 million units[109] - The company aims to continue exploring new business opportunities with major clients such as BMW, Ideal Auto, and SAIC Maxus[113] Corporate Governance - The company has adopted the corporate governance code and has complied with all relevant provisions during the reporting period[133] - The audit committee, including independent non-executive directors, reviewed the interim financial statements for the six months ending June 30, 2022[136] - Major shareholders include Huachen Investment, Huachen China, and others, each holding approximately 31.20% of the company's shares as of June 30, 2022[120]

Financial Performance - The company's revenue for the year ended December 31, 2021, was RMB 1,462,777,000, a decrease of 14.5% compared to RMB 1,711,955,000 in 2020[20] - The net loss attributable to shareholders for the year was RMB 392,934,000, compared to a loss of RMB 808,370,000 in the previous year, indicating an improvement[20] - The company reported non-current assets of RMB 2,896,847,000 and current assets of RMB 1,067,978,000 as of December 31, 2021[20] - The total equity attributable to shareholders decreased to RMB 1,790,616,000 from RMB 2,183,550,000 in 2020[20] - The company’s basic and diluted loss per share for the year was RMB (0.306), an improvement from RMB (0.631) in 2020[20] - The total liabilities decreased, with current liabilities at RMB (1,974,757,000) and non-current liabilities at RMB (199,452,000)[20] - The gross profit margin decreased from approximately 7.18% in 2020 to about 5.23% in 2021, primarily due to a reduction in engine selling prices and unchanged fixed costs[39] - The impairment loss decreased from approximately RMB 714.84 million in 2020 to about RMB 298.88 million in 2021, mainly due to a reduction in trade-related receivables impairment based on an independent valuation[39] - Sales and distribution expenses decreased by approximately 45.83% from about RMB 32.10 million in 2020 to approximately RMB 17.39 million in 2021, representing about 1.87% and 1.19% of revenue for the respective years[39] - Administrative expenses increased by approximately 39.75% from about RMB 142.49 million in 2020 to approximately RMB 199.13 million in 2021, accounting for about 8.32% and 13.61% of revenue for the respective years[39] - The company recorded a loss before tax of approximately RMB 796.70 million in 2020, which improved to a loss of about RMB 399.66 million in 2021[43] - As of December 31, 2021, the total assets amounted to approximately RMB 3.96483 billion, down from RMB 5.00675 billion as of December 31, 2020[45] - The debt-to-equity ratio as of December 31, 2021, was approximately 1.21, down from 1.29 as of December 31, 2020, indicating a decrease in borrowings and payables[49] Market and Industry Trends - The company formed a joint venture with a leading NEV manufacturer, aiming to enter the NEV market, which is supported by government subsidies and favorable policies[26] - The NEV sales in China increased by 157.5% year-on-year to 3.52 million units, representing approximately 13.3% of total vehicle sales in 2021[24] - The company expects NEV sales to reach 20% of total vehicle sales by 2025 and over 50% by 2035, reflecting strong growth potential in the NEV market[25] - The overall automotive market in China is expected to rebound, driven by trends in electrification, digitalization, and smart connectivity[33] - The Chinese automotive market grew by approximately 3.8% in 2021, with a projected increase of about 5% in 2022[78] - The competitive landscape in the engine manufacturing sector is intensifying due to new emission and fuel consumption regulations, necessitating rapid technological advancements[80] Product Development and Innovation - The company has developed NEV-compatible CE engines, with industrial production planned to start in 2022[28] - The company has signed contracts with multiple customers for the development of hybrid engines, expecting industrial production to commence in the second half of 2022[29] - The company aims to enhance market share and expand product offerings through technological improvements and the development of high-performance engines[78] - The company is actively involved in the development of new technologies and products to stay competitive in the market[58] - The company has a strong focus on technological innovation and has held various leadership positions in related industries[58] Strategic Initiatives and Partnerships - The company aims to explore potential acquisition opportunities and assess the possibility of forming joint ventures to expand its product portfolio and strengthen core competitiveness[34] - The company is expanding its market presence through strategic appointments and partnerships in the automotive sector[60] - The company emphasizes strategic partnerships with key customers to develop products that meet market demands and trends, aiming to expand market share and mitigate risks from potential declines in major customer businesses[86] - The company has formed long-term relationships with several top-tier international suppliers, ensuring compliance with legal requirements through contracts and continuous assessments of supplier capabilities[87] Governance and Management - The company has established a robust governance structure with experienced board members to guide its strategic initiatives[61][63] - The company has appointed independent non-executive directors with extensive backgrounds in finance and law, enhancing governance and compliance[61][63] - The company has a structured governance framework in place, adhering to the corporate governance code as per the listing rules[106] - The company has established internal control procedures that are deemed sufficient and effective by the independent non-executive directors[161] - The company emphasizes high standards of corporate governance to meet business needs and shareholder expectations[171] - The roles of the chairman and the CEO are clearly separated, with Mr. Wu Xiaoan serving as chairman and Mr. Wang Yunxian as CEO[181] Related Party Transactions - A related party transaction occurred in the fiscal year ending December 31, 2021, involving a loan of RMB 500 million from Huachen BMW, with an annual interest rate of 4.6%[139] - The company has confirmed that all related party transactions comply with the disclosure requirements under the listing rules[139] - The independent non-executive directors confirmed that the ongoing related party transactions are fair and reasonable, aligning with the overall interests of the company and its shareholders[161] - The company has established a compliance agreement with Huachen BMW regarding the sale and supply of engine parts and related services[158] Employee and Talent Management - The company has established a comprehensive training system and campus recruitment to build a talent pipeline and ensure sustainable development[85] - The company conducts annual employee satisfaction surveys to gather feedback for improving work efficiency and creating a harmonious work environment[85] - The company has established a four-tier employee career development pathway focusing on management, technical, professional, and skilled roles to enhance innovation capabilities[85] Financial Risks and Compliance - The company faces significant financial risks, including currency risk from USD-denominated loans, which may impact financial performance[77] - The company continues to monitor foreign exchange risks and may consider hedging strategies as necessary[77] - The company has complied with all relevant environmental regulations and has established necessary environmental protection facilities[82] - The company has a strong commitment to environmental protection and compliance with national laws and regulations, ensuring minimal impact on the environment[82]

Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 939.319 million, a significant increase from RMB 741.953 million in the same period of 2020, representing a growth of approximately 26.5%[3] - Gross profit for the same period was RMB 116.124 million, compared to RMB 46.346 million in 2020, indicating a gross margin improvement from 6.3% to 2.4%[3] - The company reported a profit before tax of RMB 31.290 million, a turnaround from a loss of RMB 78.074 million in the previous year[3] - Net profit for the period was RMB 32.121 million, compared to a loss of RMB 78.615 million in the prior year, marking a substantial recovery[4] - The company reported a total comprehensive income of RMB 32.121 million, a significant improvement from a total comprehensive loss of RMB 78.897 million in the prior year[4] - The basic earnings per share for the period was RMB 0.025, compared to a loss per share of RMB 0.061 in the previous year[4] - The company reported a pre-tax profit of RMB 31,290,000 for the six months ended June 30, 2021, recovering from a loss of RMB 78,074,000 in the same period of 2020[15] - The company reported total unaudited revenue of approximately RMB 939.32 million for the first half of 2021, an increase of about 26.6% compared to RMB 741.95 million in the same period last year[86] - The unaudited pre-tax profit for the first half of 2021 was approximately RMB 31.29 million, compared to an unaudited pre-tax loss of approximately RMB 78.07 million in the first half of 2020[90] - The group recorded an unaudited net profit attributable to equity shareholders of approximately RMB 32.12 million in the first half of 2021, compared to a net loss of approximately RMB 78.62 million in the same period of 2020[90] Cash Flow and Liquidity - Current liabilities decreased to RMB 2.386 billion from RMB 2.470 billion, improving the company's liquidity position[9] - The company’s cash and cash equivalents increased significantly to RMB 483.878 million from RMB 55.285 million, enhancing its financial flexibility[6] - The operating cash flow before changes in working capital for the six months ended June 30, 2021, was RMB 208,257,000, a significant increase from RMB 101,653,000 in the same period of 2020, representing a growth of approximately 104.5%[15] - The net cash generated from operating activities for the six months ended June 30, 2021, was RMB 641,425,000, compared to RMB 146,338,000 in the previous year, indicating a substantial increase of about 338.5%[15] - The cash flow from investing activities showed a net inflow of RMB 197,621,000 for the six months ended June 30, 2021, contrasting with a net outflow of RMB 235,491,000 in the same period of 2020[17] - The financing activities resulted in a net cash outflow of RMB 410,453,000 for the six months ended June 30, 2021, compared to a net inflow of RMB 54,727,000 in the previous year[17] - The company’s net current liabilities as of June 30, 2021, were approximately RMB 512,503,000, indicating a need for ongoing liquidity management[19] - The company is actively implementing measures to improve cash flow and manage production costs to meet sales forecasts and enhance operational efficiency[20] Revenue Breakdown - The revenue from gasoline engines was RMB 322,999,000 for the six months ended June 30, 2021, compared to RMB 260,111,000 in the same period of 2020, reflecting a growth of about 24.2%[28] - The revenue from diesel engines decreased to RMB 23,255,000 in the first half of 2021 from RMB 92,736,000 in the same period of 2020, indicating a decline of approximately 74.9%[28] - The revenue from engine components increased significantly to RMB 593,065,000 for the six months ended June 30, 2021, up from RMB 389,106,000 in the same period of 2020, marking a growth of around 52.5%[28] - The revenue from the engine business segment fell by approximately 1.9%, from RMB 352.85 million in the first half of 2020 to RMB 346.25 million in the first half of 2021[86] - Revenue from the engine components and services segment increased by approximately 52.4%, from RMB 389.11 million in the first half of 2020 to RMB 593.07 million in the first half of 2021[86] Assets and Liabilities - Total assets as of June 30, 2021, were RMB 4.913 billion, slightly down from RMB 5.007 billion at the end of 2020[6] - The total amount of trade payables and notes payable was RMB 878,127 thousand as of June 30, 2021, down from RMB 904,214 thousand as of December 31, 2020, indicating a decrease of approximately 2.9%[58] - The company reported a significant increase in trade payables, which rose to RMB 496,914 thousand as of June 30, 2021, compared to RMB 470,170 thousand as of December 31, 2020[58] - The company’s lease liabilities as of June 30, 2021, were RMB 2,233 thousand, down from RMB 5,231 thousand as of December 31, 2020[70] - The present value of lease liabilities decreased from RMB 5,100 thousand as of December 31, 2020, to RMB 2,191 thousand as of June 30, 2021[70] Employee and Operational Costs - Total employee costs increased to RMB 70,684,000 from RMB 57,617,000, representing a rise of 22.6%[33] - The company recorded a significant increase in sales, primarily driven by a substantial rise in sales of engine components, particularly crankshafts[102] - The group employed approximately 1,147 employees as of June 30, 2021, with employee costs for the first half of 2021 amounting to approximately RMB 70.68 million, compared to approximately RMB 57.62 million in the same period of 2020[99] Corporate Governance and Shareholder Information - The board of directors did not recommend any interim dividend for the six months ended June 30, 2021[107] - Major shareholders hold approximately 31.20% of the company's shares, with significant stakes held by Huachen Investment and related entities[113] - As of June 30, 2021, the company had a total of 1,282,211,794 shares issued[121] - The company has adopted the corporate governance code and has complied with all its provisions during the reporting period[128] - The audit committee has reviewed the accounting principles and practices used by the group for the six months ended June 30, 2021[130] - The board of directors consists of two executive directors and four independent non-executive directors as of the report date[131] Future Outlook and Strategic Initiatives - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[4] - The company has developed a NEV-compatible CE engine, expected to begin industrial production in the first half of 2022, to adapt to the changing automotive market in China[102] - The company is exploring new business opportunities with BMW Group, Brilliance BMW, and other major clients in the future[106]