香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告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。 01165 截至 年 月 日止六個月的中期業績公告 2023 6 30 董事會欣然公佈本集團截至2023年6月30日止六個月的未經審核中期業績，連同2022年同 期的比較數字。 該等未經審核中期簡明綜合財務報表已由本公司核數師中匯安達會計師事務所有限公司 及審核委員會審閱及於2023年8月30日獲董事會批准。 業績摘要 截至2023年 截至2022年 6月30日 6月30日 變動 止六個月 止六個月 百分比 人民幣千元 人民幣千元 ...

Financial Performance - Total electricity generation for 2022 was 399,828 MWh, a decrease of 53.9% from 867,275 MWh in 2021[20] - Revenue from solar power generation in China decreased by RMB 337.1 million or 51.8% to RMB 313.1 million, primarily due to the completion of asset sales[24] - Sales costs decreased by RMB 184.7 million or 52.3% to RMB 168.7 million, attributed to a reduction in electricity generation from 867,275 MWh to 399,828 MWh[25] - Gross profit decreased by RMB 152.4 million or 51.3% from RMB 296.8 million in the year ended December 31, 2021, to RMB 144.4 million in the current year[28] - Other income increased by RMB 69.2 million or 187.5% from RMB 36.9 million in the year ended December 31, 2021, to RMB 106.1 million in the current year, primarily due to a rise in received electricity subsidies[29] - Net other gains recorded RMB 64.8 million in the current year, compared to a net loss of RMB 413.4 million in the year ended December 31, 2021, mainly due to a significant reduction in losses from the sale of subsidiaries[30] - Administrative expenses decreased by RMB 19.6 million or 18.2% from RMB 107.9 million in the year ended December 31, 2021, to RMB 88.3 million in the current year[32] - Financial expenses decreased by RMB 162.1 million or 27.3% from RMB 592.9 million in the year ended December 31, 2021, to RMB 430.8 million in the current year, mainly due to a reduction in interest on bank and other borrowings[34] - Loss before tax decreased by RMB 638.4 million to RMB 173.8 million in the current year from a loss of RMB 812.2 million in the year ended December 31, 2021[35] - Loss from continuing operations decreased by RMB 639.4 million or 78.2% from RMB 818.0 million in the year ended December 31, 2021, to RMB 178.6 million in the current year[37] - Revenue growth decreased significantly, with a decline of 51.8% in 2022 compared to previous years[62] - Adjusted EBITDA for 2022 was RMB 300,036 thousand, with an adjusted EBITDA margin of 95.8%[62] - Total debt increased to RMB 3,789,336 thousand in 2022, resulting in a debt ratio of 144.2%[62] - The company reported a net loss per share of RMB 3.48 in 2022, an improvement from previous losses[62] - Total assets decreased to RMB 5,058,798 thousand in 2022, while total liabilities were RMB 6,057,492 thousand[62] - The interest coverage ratio improved to 1.0 in 2022, indicating better ability to meet interest obligations[62] - Trade receivables turnover days increased to 990.2 days in 2022, reflecting longer collection periods[62] - The company maintained a high adjusted EBITDA ratio of 95.8% in 2022, indicating operational efficiency despite revenue decline[62] Corporate Governance - The company is focused on improving corporate governance and transparency to enhance overall performance[73] - The board of directors held a total of 5 meetings during the year, with all independent non-executive directors attending all meetings[88] - The company has three independent non-executive directors, with one having over nine years of service, and all confirmed their independence under listing rules[84] - The company aims to appoint at least one director of a different gender by December 31, 2024, to enhance gender diversity on the board[90] - The board has established an audit committee, a remuneration committee, and a nomination committee, each with defined roles and responsibilities[91] - All directors received training on the roles and responsibilities of listed company directors, ensuring compliance with corporate governance codes[85] - The company has mechanisms in place to ensure independent viewpoints are provided to the board, enhancing decision-making processes[81] - Independent non-executive directors are required to dedicate sufficient time to fulfill their duties, with their attendance and participation reviewed annually[84] - The company has implemented appropriate recruitment practices to consider diversity in hiring, including gender, age, and cultural background[90] - The board believes that the continued service of independent non-executive directors enhances stability and provides valuable insights to the company[84] Risk Management - The company has established a two-part enterprise risk management framework to assess and evaluate business strategies and risk tolerance levels[118] - The company has established an enterprise risk management framework to effectively manage various risks, including strategic, operational, financial, reporting, and compliance risks[125] - The internal audit function has been outsourced to a third-party professional internal control consultant to ensure the independence of internal control reviews[122] - The internal control consultant completed the review of the internal control system for the fiscal year ending December 31, 2022, covering transactions from January 1, 2022, to December 31, 2022[132] - The board of directors has reviewed the risk management and internal control systems and found them to be effective as of December 31, 2022[134] - The company has implemented a whistleblowing mechanism to encourage employees to report misconduct or fraud incidents[130] - Identified risks are recorded in a risk register, and the company regularly assesses the potential impact and likelihood of each key risk[131] - The company is committed to continuously enhancing its enterprise risk management framework to align with industry best practices[134] Environmental and Social Responsibility - The company is focused on providing clean energy and low-carbon energy-saving solutions as its main business[160] - The company’s solar power plants generated approximately 399,828 MWh of electricity in 2022, saving 120,548 tons of coal compared to traditional coal-fired power plants, and reducing emissions of dust, CO2, and SO2 by 9 tons, 331,058 tons, and 40 tons respectively[174] - The company donated RMB 50,000 to support rural revitalization projects in Renyi Village, Xuanhan County, aimed at improving the quality of life for villagers[184] - The company will continue to review its environmental practices to ensure continuous improvement[175] Shareholder Information - The company has no distributable reserves as of December 31, 2022[180] - The board has decided not to declare a final dividend for the year[178] - The company has adopted a dividend policy that allows the board to propose and/or declare dividends based on financial performance and various factors, including liquidity and capital requirements[145] - The company has reviewed its communication channels with shareholders annually and is satisfied with the implementation and effectiveness of these channels[144] - Major shareholder Peace Link Services Limited owns 2,426,263,467 shares, accounting for approximately 47.74% of the company's issued share capital[195] - Asia Pacific Resources Development Investment Limited holds 2,501,820,658 shares, representing approximately 49.23% of the company's issued share capital[195] Debt and Financial Position - The company has successfully negotiated debt restructuring with major financial institutions, significantly improving cash flow and reducing total debt[10] - The company is taking measures to improve its liquidity and financial position as outlined in the financial statements[103] - The company is in ongoing discussions with banks and financial institutions regarding alternative refinancing and/or extending the maturity dates of related debts[106] - The company faced unexpected circumstances that hindered debt repayment progress, including the termination of the first proposed sale in 2022 due to unmet conditions[109] - The company anticipates that if the proposed plans and measures are successfully implemented, uncertainties related to going concern may be removed from the auditor's report for the year ending December 31, 2023[110] - The audit committee has reviewed and agreed on the measures to address uncertainties related to going concern, ensuring a balanced and comprehensive assessment of the company's performance and outlook[113]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並表明不會就因本公告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。 01165 截至 年 月 日止年度經審核全年業績公告 2022 12 31 董事會欣然公佈本集團本年度的經審核綜合年度業績連同截至2021年12月31日止年度的 比較數字如下： 業績摘要 截至2022年 截至2021年 變動 12月31日止年度 12月31日止年度 百分比 人民幣千元 人民幣千元 （經重列） 持續經營業務 收入 – 太陽能發電 313,143 650,186 (51.8%) ...

Financial Performance - The total electricity generation from solar power stations owned by the company in China was approximately 217,252 MWh, a decrease of 53.7% from 469,527 MWh in the same period of 2021[12][13]. - Revenue from solar power generation in China decreased by RMB 193.8 million or 53.2% to RMB 170.7 million, primarily due to the completion of share transfers related to the sale of target companies[16]. - The cost of sales decreased by RMB 124.6 million or 67.5% to RMB 59.9 million, attributed to the reduction in electricity generation[19]. - Gross profit decreased by RMB 69.2 million or 38.4% to RMB 110.8 million compared to the same period in 2021[20]. - Other income decreased by RMB 5.3 million or 37.1% to RMB 9.0 million, mainly due to a reduction in accrued interest income from electricity subsidies[21]. - The company recorded a net loss of RMB 118.4 million in other gains and losses, compared to a net gain of RMB 9.3 million in the same period of 2021[22]. - Loss before income tax increased from RMB 118.9 million in the same period of 2021 to RMB 193.9 million, an increase of RMB 75.0 million[27]. - Income tax expense rose by RMB 1.6 million or 320.0% from RMB 0.5 million in the same period of 2021 to RMB 2.1 million[28]. - Loss from continuing operations increased from RMB 119.4 million in the same period of 2021 to RMB 196.0 million, an increase of RMB 76.6 million[29]. - The company reported a net loss of RMB 195,974,000 for the six months ended June 30, 2022, compared to a loss of RMB 38,921,000 in the same period of 2021[121]. - The basic loss per share for the period was RMB 3.89, compared to RMB 1.42 in the same period last year, indicating a worsening financial performance[90]. - The company reported a pre-tax loss of RMB 193,875 thousand for the six months ended June 30, 2022, compared to a loss of RMB 118,946 thousand in the same period of 2021[152]. Expenses and Liabilities - Administrative and general expenses increased by RMB 5.5 million or 14.9% to RMB 42.5 million[23]. - Financial expenses decreased by RMB 70.8 million or 24.4% to RMB 218.8 million, mainly due to a reduction in interest on bank and other borrowings[26]. - The company’s current liabilities as of June 30, 2022, amounted to RMB 1,039,952,000, indicating significant liquidity concerns[81]. - The company reported a net current liability of RMB (1,039,952) thousand, compared to RMB (979,616) thousand at the end of 2021, indicating a worsening of approximately 6.1%[95]. - The company’s total liabilities, including bank loans and bonds, amounted to RMB 2,215,812,000, with a significant portion due within one year[81]. - The company had overdue bank and other borrowings and bonds payable of approximately RMB 1,050,994,000 and RMB 585,372,000, respectively[121]. - The company is facing arbitration claims from bondholders for immediate repayment of outstanding principal and accrued interest, which may impact its financial stability[81]. Revenue and Sales - The company’s major customers accounted for approximately 61.2% of total revenue, with the largest customer contributing about 17.4%[14]. - For the six months ended June 30, 2022, the company reported a revenue of RMB 170,684,000, a decrease of 53% compared to RMB 364,493,000 for the same period in 2021[87]. - The revenue from electricity sales and subsidies was RMB 47,482 thousand for the six months ended June 30, 2022, compared to RMB 123,202 thousand for the same period in 2021, indicating a decrease of about 61%[145]. - External sales revenue from electricity sales was RMB 47,482 thousand, down 55.7% from RMB 106,808 thousand in the previous year[156]. - Electricity subsidies accounted for approximately 72.2% of total revenue, totaling RMB 123,202 thousand, compared to RMB 257,685 thousand in the prior year[156]. Assets and Equity - As of June 30, 2022, total assets decreased to RMB 3,709,593 thousand from RMB 5,195,512 thousand as of December 31, 2021, representing a decline of approximately 28.5%[92]. - Non-current assets amounted to RMB 1,486,432 thousand, down from RMB 1,557,026 thousand, indicating a decrease of about 4.5%[92]. - The total equity attributable to owners of the company was RMB (1,168,000) thousand as of June 30, 2022, compared to RMB (974,319) thousand at the end of 2021, representing an increase of about 19.9%[95]. - The company’s cash and cash equivalents increased significantly to RMB 487,717 thousand from RMB 55,676 thousand, marking a substantial rise of approximately 774.5%[92]. - The company’s trade and other receivables decreased slightly to RMB 1,023,550 thousand from RMB 1,036,131 thousand, a decline of about 1.2%[92]. Operational Changes and Future Plans - The company completed the transfer of shares for three of the seven target companies in the first major sale agreement, totaling RMB 537.6 million[41]. - The second major sale agreement was approved by shareholders on January 13, 2022, involving the sale of 100% equity of two target companies for RMB 414.7 million[43]. - The company agreed to sell 100% equity of several subsidiaries for a total consideration of RMB 889.6 million, but the agreement was terminated due to unmet conditions[46]. - The group plans to focus on solar energy business development and management in China after completing several sales transactions[52]. - The company continues to implement plans to improve its liquidity and financial position, including collecting remaining sale proceeds from subsidiaries[122]. Shareholder Information - As of June 30, 2022, Mr. Wang Yu holds 27,345,588 shares, representing approximately 0.55% of the total issued share capital[64]. - Mr. Zhang Fubo owns 9,918,000 shares, which accounts for about 0.20% of the total issued share capital[64]. - Peace Link Services Limited holds 2,599,335,467 shares, representing 52.17% of the total issued share capital[68]. - Asia Pacific Resources Development Investment Limited has a beneficial interest in 2,674,892,658 shares, equating to 53.69% of the total issued share capital[68]. - Mr. Zheng Jianming has a beneficial interest in 2,681,844,658 shares, which is approximately 53.83% of the total issued share capital[68]. Impairment and Credit Losses - The company recognized a net impairment loss provision of RMB 64,277,000 for expected credit losses for the six months ended June 30, 2022, significantly higher than RMB 2,559,000 for the same period in 2021[167]. - The impairment loss recognized for completed solar power plants was RMB 49,802,000, compared to RMB 17,672,000 for the same period in 2021[185]. - The impairment loss on assets classified as held for sale was RMB (26,959) thousand, while the impairment reversal for solar power stations was RMB 49,802 thousand[152].

Financial Performance - The total electricity generation from solar power plants owned by the company in China for the year was approximately 867,275 MWh[27]. - Revenue from continuing operations in solar power generation in China fell by RMB 254.2 million or 28.1% to RMB 650.2 million in 2021, primarily due to the absence of gains from the sale of target companies recognized in 2020[38]. - The gross profit from continuing operations decreased by RMB 151.1 million or 33.7% to RMB 296.8 million in 2021[41]. - Other income from continuing operations decreased by RMB 8.3 million or 18.4% to RMB 36.9 million in 2021, mainly due to a reduction in interest income from electricity subsidies[42]. - The loss from continuing operations increased by RMB 268.6 million or 44.5% to RMB 872.5 million in 2021[56]. - The financial expenses for continuing operations decreased by RMB 184.2 million or 23.7% to RMB 592.9 million in 2021, primarily due to a reduction in interest on bank and other borrowings[50]. - The company reported a loss of RMB 745,613,000 for the year ended December 31, 2021, with total equity attributable to owners of the company recording a deficit of RMB 974,319,000[135]. - Current liabilities exceeded current assets by RMB 979,616,000 as of December 31, 2021, a decrease of RMB 2,059,444,000 compared to RMB 3,039,060,000 on December 31, 2020[135]. - The company faced significant challenges in obtaining additional financing due to its net current liabilities and capital deficit situation[135]. - The auditor issued a disclaimer of opinion on the consolidated financial statements for the year ended December 31, 2021, due to uncertainties regarding the company's ability to continue as a going concern[135]. Asset Sales and Transactions - The company sold 100% equity of Jingneng Photovoltaic (Jiangxi) Co., Ltd. for RMB 670 million, which was approved by shareholders on July 13, 2021[23]. - The company completed the sale of 7 solar power plants in China to China Power Investment Xinjiang Energy Chemical Group for an undisclosed amount, with the agreement approved on December 13, 2021[14]. - The company completed the sale of its LED business segment, which is now classified as discontinued operations[23]. - The company completed the sale of 11 target companies for a total consideration of RMB 641.42 million in 2019[70]. - The sale of six target companies was completed for a total consideration of RMB 181.14 million in 2020[75]. - The company entered into a conditional sale agreement for the 100% equity of Jinko Solar (Jiangxi) Co., Ltd. for RMB 670 million[77]. - The company completed the transfer of shares for three target companies from the first sale agreement, with the total consideration amounting to RMB 537.6 million[82]. - The second sale agreement involved the sale of 100% equity in two target companies for a total consideration of RMB 414.7 million[83]. - The company announced a third sale agreement involving the sale of 100% equity in a target company for a total consideration of RMB 14.4 million[88]. - The company is set to sell 100% equity in four target companies for a total consideration of RMB 889.6 million under the 2022 sale agreement[94]. Corporate Governance - The company has been focusing on improving its corporate governance practices to enhance overall performance and accountability[106]. - The board of directors is responsible for overseeing the company's strategic development and financial performance[109]. - The company has adopted a standard code of conduct for securities trading by its directors, ensuring compliance with necessary standards[110]. - The board consists of four executive directors and three independent non-executive directors, ensuring a balance of power and authority[114]. - All independent non-executive directors have extensive academic, professional, and industry expertise, providing independent opinions on the group's business strategy and performance[115]. - The board held a total of 7 meetings during the year, with all executive directors attending all meetings[120]. - Independent non-executive directors serve a term of three years, with two directors having served for over nine years, yet still considered independent[117]. - The company provides training for all directors to ensure they understand their responsibilities and comply with corporate governance codes[119]. - The board has established committees including the Audit Committee, Remuneration Committee, and Nomination Committee, with defined roles and responsibilities[124]. - Directors are required to be re-elected at least every three years during the annual general meeting[123]. Risk Management - The company has established a two-part enterprise risk management framework, consisting of a risk management structure and risk management procedures[153]. - The management is responsible for identifying and continuously monitoring strategic, operational, financial, reporting, and compliance risks[157]. - The internal audit function is outsourced to a third-party professional internal control consultant to ensure independence in the review of risk management procedures[158]. - The company has implemented a clear internal control policy and procedures to delineate responsibilities and accountability across departments[162]. - The board has reviewed the risk management and internal control procedures, considering resources, staff qualifications, experience, and training adequacy[164]. - Management has identified significant risk factors and regularly monitors changes, with a risk register in place to assess potential impacts and likelihood[165]. - An independent review of the internal audit function was completed, covering transactions from January 1, 2021, to December 31, 2021, with recommendations to be followed up by management[166]. - The audit committee and board have not identified any deficiencies in the risk management and internal control systems[167]. - The internal control system was deemed effective as of December 31, 2021, with ongoing enhancements planned to align with industry best practices[168]. Employee and Management - The company has 1,101 employees as of December 31, 2021, including 1,008 from discontinued operations[90]. - The company’s executive director, Mr. Wang Yu, has over 24 years of management experience in various financial and investment roles[181]. Future Outlook - The company aims to become a leading global provider of low-carbon energy solutions by optimizing its asset and liability structure[14]. - The company is actively seeking various clean energy resources to establish a solid foundation for its growth as a leading low-carbon energy solutions provider[24]. - The company expects that if proposed measures are successfully implemented, the uncertainty regarding going concern may be removed in the auditor's report for the year ending December 31, 2022[142]. - The company is currently negotiating with creditors regarding a potential one-time early repayment and a proposal to waive part of the outstanding principal and all accrued interest[145].

Financial Performance - Revenue from continuing operations in solar power generation in China decreased by RMB 215.8 million or 37.2% to RMB 364.5 million, primarily due to the absence of income from previously sold companies[23]. - The company recorded a net profit of RMB 9.3 million from other gains, a significant improvement from a net loss of RMB 313.1 million in the same period of 2020[29]. - The gross profit from continuing operations decreased by RMB 135.8 million or 43.0% to RMB 180.0 million, down from RMB 315.8 million in the same period of 2020[26]. - Loss before tax decreased to RMB 118.9 million from RMB 522.3 million in the same period of 2020, a reduction of RMB 403.4 million[34]. - Loss from continuing operations decreased to RMB 119.4 million from RMB 524.6 million in the same period of 2020, a reduction of RMB 405.2 million[38]. - The company reported a net loss of RMB 38,921,000 for the six months ended June 30, 2021, with total equity attributable to owners of the company recording a deficit of RMB 1,592,174,000[72]. - The company reported a basic loss per share of RMB 1.42 for the period, an improvement from RMB 9.86 in the same period last year[123]. - The company reported a net loss of RMB 491,559,000 for the period, which is a slight improvement from the previous year's loss of RMB 491,401,000[142]. - The total comprehensive income amounted to a loss of RMB 468,280,000, compared to a loss of RMB 491,401,000 in the same period of 2020, reflecting a decrease of approximately 4.7%[142]. Revenue and Sales - The total electricity generation from solar power stations owned by the company in China was approximately 469,527 MWh, a decrease of 37.0% compared to 745,017 MWh in the same period of 2020[15]. - The sales revenue from the discontinued LED products segment increased by RMB 91.8 million or 41.4% to RMB 313.6 million compared to RMB 221.8 million in the same period of 2020[24]. - The company’s revenue from sales to Chinese customers accounted for 100% of total revenue from continuing operations during the period[17]. - Revenue for the six months ended June 30, 2021, was RMB 364,493 thousand, a decrease of 37.2% compared to RMB 580,253 thousand for the same period in 2020[121]. - Revenue from electricity subsidies received from the State Grid Corporation of China amounted to RMB 257,685,000 for the six months ended June 30, 2021, compared to RMB 420,875,000 for the same period in 2020[197]. Operational Metrics - The total installed capacity of solar power generation in China was approximately 763 MW as of June 30, 2021[15]. - The company’s five largest customers accounted for approximately 65.4% of total revenue from continuing operations, down from 68.3% in the same period of 2020[16]. - The company completed the transfer of shares for 11 target companies during the reporting period, with a total consideration of RMB 181,139,954.86 for the 2020 sale agreements[52]. - The company has entered into seven sale agreements with a total consideration of RMB 537.6 million for the potential sale of 100% equity in seven target companies[59]. Financial Position and Liabilities - As of June 30, 2021, the current ratio was 0.62, up from 0.56 on December 31, 2020, indicating a negative net cash position of RMB 6,467.7 million[41]. - The debt-to-equity ratio increased from 7,658.8% on December 31, 2020, to 14,630.3% on June 30, 2021[42]. - The company’s bank and other borrowings amounted to RMB 3,210,943,000, with RMB 2,969,405,000 due for immediate repayment[72]. - The group’s current liabilities exceeded its current assets by RMB 2,673,924,000 as of June 30, 2021[72]. - The company has overdue loans totaling RMB 2,069,577,000 as of June 30, 2021, with RMB 771,342,000 expected to be settled through the sale of solar power plants[167]. Going Concern and Financial Stability - The effectiveness of the going concern basis for the financial statements depends on the financial support from the controlling shareholder and the outcomes of various plans and measures[76]. - The company faces significant uncertainties that may cast doubt on its ability to continue as a going concern[75]. - The ability to continue as a going concern depends on successfully generating sufficient investment, financing, and operating cash flows from the planned sales of target companies and solar power stations[178]. - If the company fails to achieve the outlined plans, it may not be able to continue as a going concern and will need to adjust asset values accordingly[113]. Strategic Plans and Future Outlook - The company is actively considering fundraising through refinancing and/or further sales of solar power stations to enhance financial stability and support long-term strategic development[64]. - The company is pursuing the collection of remaining proceeds from the sale of 11 target companies and 6 target companies to meet immediate financing needs[75]. - The company is negotiating with banks and financial institutions for alternative refinancing and/or deferral of loan maturities due to breaches of certain loan covenants[78]. - The company is exploring potential buyers for other solar power stations to generate additional proceeds[178]. Shareholder Information - Major shareholders include Peace Link Services Limited with 2,599,335,467 shares (52.17%) and Zheng Jianming with 2,681,844,658 shares (53.83%)[93]. - The total issued share capital is approximately 4,979,000,000 shares, with major shareholders holding significant stakes[93]. - The company has maintained a public float of at least 25% of its issued shares as required by listing rules[86]. Accounting and Reporting Standards - The financial statements are prepared in accordance with International Accounting Standards[105]. - The company has applied new international financial reporting standards, but these changes did not have a significant impact on its financial position or performance during the reporting period[181]. - The company has not provided a conclusion on the interim financial statements due to uncertainties affecting going concern[106].

Financial Performance - Total revenue decreased by RMB 264.8 million or 15.3% to RMB 1,466.3 million from RMB 1,731.1 million in the previous year[33]. - Solar power generation revenue fell by RMB 464.0 million or 33.9% to RMB 904.4 million, with generation volume decreasing by 35.9% to 1,182,567 MWh from 1,843,762 MWh[35]. - LED products sales revenue increased by RMB 199.2 million or 54.9% to RMB 561.9 million from RMB 362.7 million in the previous year[36]. - Gross profit decreased by RMB 38.7 million or 5.3% to RMB 688.1 million from RMB 726.8 million[38]. - Other income decreased by RMB 22.4 million or 19.1% to RMB 95.0 million, primarily due to reduced government subsidies[41]. - R&D expenses increased by RMB 12.0 million or 20.0% to RMB 72.0 million, driven by increased investment in LED products[45]. - Financial expenses decreased by RMB 381.2 million or 32.8% to RMB 781.8 million, mainly due to lower interest on convertible bonds and bank loans[47]. - Pre-tax loss decreased by RMB 1,512.5 million to RMB 488.5 million from RMB 2,001.0 million in the previous year[50]. - The total loss for the year decreased by RMB 1,383.3 million or 73.4% to RMB 501.6 million from RMB 1,884.9 million[52]. - The adjusted EBITDA for the year was RMB 457,294,000, with an adjusted EBITDA margin of 32.9%[106]. - The company reported a revenue growth of 33.9% for the year, with a gross profit margin of 27.3%[106]. - The total debt as of the reporting date is RMB 14,863,270,000, with a debt ratio of 69.6%[106]. - The group reported a loss of RMB 501,622,000 for the year ended December 31, 2020, with equity attributable to owners amounting to a loss of RMB 1,474,385,000[149]. Operational Changes - The company completed the sale of 11 solar power stations to China National Nuclear Corporation Shandong Energy Co., Ltd., and 6 solar power stations to Zhejiang Chint New Energy Development Co., Ltd., optimizing its asset and liability structure[12]. - The company has retained two divisions: solar power generation in China and the manufacturing and sales of LED products, following the sale of Jiangsu Shunfeng Photovoltaic Technology Co., Ltd.[23]. - The company is in the process of a potential sale of 100% equity in a subsidiary for a total consideration of RMB 670 million, which is subject to shareholder approval[71]. - The company is considering further sales of solar power stations in China under similar terms to the previous sales, with potential buyers already engaged[87]. - The company has successfully negotiated debt restructuring with major financial institutions, improving its cash flow situation[11]. - The company has made total repayments of RMB 187,100,000 on the 2015 corporate bonds as of December 31, 2020[97]. - The company plans to seek further extensions for the repayment of the 2016 corporate bonds, with an outstanding principal of RMB 255,463,000 as of the report date[101][102]. Environmental Impact - The total electricity generation from solar power stations owned by the company in China for the year was approximately 1,182,567 MWh, a decrease from 1,865,390 MWh in 2019[18]. - The company reduced emissions significantly, with over 990,991 tons of CO2, 45 tons of smoke, 221 tons of sulfur dioxide, and 231 tons of nitrogen oxides eliminated[2]. - The company is committed to exploring various clean energy resources to solidify its foundation as a global leader in low-carbon energy solutions[24]. - The company aims to deliver substantial returns to shareholders by leveraging advancements in energy storage and hydrogen technologies[16]. - The company anticipates continued cost reductions in solar power generation, with many markets approaching grid parity[16]. - The company is focused on becoming a leading provider of low-carbon energy solutions, with ongoing adjustments to its asset allocation and investment direction[16]. Corporate Governance - The company has maintained good corporate governance practices, which are essential for enhancing overall performance and transparency[117]. - The board of directors consists of seven members, including four executive directors and three independent non-executive directors, ensuring a balance of power and independence[122]. - The company has adopted a standard code of conduct for securities trading, confirming compliance by all directors for the reporting year[123]. - The chairman and CEO roles are currently held by the same individual, which the board believes is appropriate given the streamlined operations following past divestitures[124]. - Independent non-executive directors play a crucial role in providing independent judgment and oversight of the company's performance[127]. - The company is committed to reviewing its corporate governance policies and compliance with listing rules regularly[120]. - The board is responsible for the overall management of the company, including strategy development and monitoring financial performance[122]. - The company has established a clear framework for the appointment and re-election of directors, ensuring compliance with governance standards[137]. - The audit committee monitored the integrity of the company's financial reports and compliance with applicable standards[139]. - The remuneration committee's recommendations align with corporate governance codes regarding executive compensation[143]. Risk Management - The company has established a two-part enterprise risk management framework consisting of a risk management structure and risk management procedures[154]. - The audit committee is responsible for monitoring the overall risk management procedures and reviewing the risk register of the group[156]. - The management is tasked with identifying and continuously monitoring strategic, operational, financial, reporting, and compliance risks[159]. - The company has outsourced its internal audit function to a third-party professional internal control consultant to ensure the independence of internal control reviews[160]. - The risk management framework defines the processes for identifying, assessing, responding to, and monitoring risks and their changes[161]. - The company has established a clear internal control policy and procedures, defining responsibilities, authority, and accountability across departments[167]. - The management has identified significant risk factors and maintains a risk register to regularly assess the potential impact and likelihood of key risks[168]. - An independent review of the internal control system was completed for the fiscal year ending December 31, 2020, covering both corporate and operational levels[169]. - The audit committee has received risk management and internal control reports for annual review, confirming the effectiveness of the systems in place[171]. Employee and Stakeholder Engagement - As of December 31, 2020, the group had 1,045 employees, with compensation aligned to employee responsibilities and performance[75]. - The company emphasizes high transparency and timely communication with shareholders through annual reports and announcements[175]. - The board of directors is committed to maintaining regular communication with institutional investors and analysts regarding the company's strategies and operations[175]. - The company has mechanisms in place to encourage employees to report misconduct or fraud incidents[167]. - All directors received training on corporate governance and regulatory obligations to enhance their knowledge and skills[130].

(Incorporated in the Cayman Islands with limited liability) Stock code: 01165 INTERIM REPORT 2020 INTERIM REPORT 2020 中期報 告 WORLD'S LEADING CLEAN ENERGY PROVIDER LOW-CARBON & ENERGY-SAVING INTEGRATED SOLUTIONS PROVIDER 順 風 國 際 清 潔 能 源 有 限 公 司 SHUNFENG INTERNATIONAL CLEAN ENERGY LIMITED （於開曼群島註冊成立的有限公司） 股份代號：01165 中期報告 2020 全球領先 清潔能源供應商 低碳節能 綜合解決方案供應商 | --- | --- | --- | |-------|-------|------------------------------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 目錄 | | 2 | | 公司資料 | ...

Financial Performance - The total electricity generation for 2019 was 1,865,390 MWh, an increase from 1,766,414 MWh in 2018, representing a growth of approximately 5.6%[5]. - The revenue from solar power generation in China increased by RMB 60.0 million or 4.6% to RMB 1,368.4 million, driven by a 5.0% increase in electricity generation[64]. - The company reported a revenue growth of 5.4% for the fiscal year 2019, compared to 7.1% in 2018 and 10.3% in 2017[122]. - The gross profit margin improved to 42.0% in 2019, up from 37.1% in 2018[122]. - Adjusted EBITDA for 2019 was RMB 960,198 thousand, with an adjusted EBITDA margin of 55.5%[122]. - The company reported a total sales volume of 1,800,000 MW in 2019, reflecting robust operational capacity[125]. - The company’s revenue from continuing operations reached RMB 2,000,000 thousand in 2019, showing a significant increase compared to previous years[125]. Debt and Liquidity - The company faced significant liquidity challenges due to delays in receiving electricity subsidies from the Chinese government, impacting its debt obligations[32]. - The company sold its solar product manufacturing business and 11 solar power station assets in China to reduce overall debt levels and improve cash flow[36]. - The company’s overall debt situation is expected to improve following the completion of significant asset sales[36]. - The company reported a net loss of RMB 1,884,883,000 for the year ended December 31, 2019, with total liabilities exceeding current assets by RMB 4,818,353,000[114]. - The company plans to repay all overdue loans and debts before the end of the fiscal year 2020[120]. - The company is negotiating with banks and financial institutions to extend the repayment schedule for related debts[120]. - The net debt to equity ratio was 1,464.8% as of the reporting date[95]. Operational Efficiency - The company aims to balance long-term asset holdings with short-term cash flow needs while reducing management costs and expenses to improve operational efficiency[38]. - Distribution and sales expenses decreased by RMB 2.3 million or 18.9% to RMB 9.9 million from RMB 12.2 million for the year ended December 31, 2018[78]. - Administrative expenses decreased by RMB 5.6 million or 2.7% to RMB 203.9 million from RMB 209.5 million for the year ended December 31, 2018[80]. - R&D expenses increased by RMB 18.9 million or 46.0% to RMB 60.0 million from RMB 41.1 million for the year ended December 31, 2018[81]. - The company aims to streamline operations and improve efficiency by having the same individual serve as both chairman and CEO under specific circumstances[132]. Governance and Compliance - The board of directors has made appropriate adjustments to its operational strategies to safeguard ongoing operations and maximize shareholder interests[36]. - The board consists of seven members, including four executive directors and three independent non-executive directors, ensuring a balanced governance structure[135]. - The company has established an audit committee, a remuneration committee, and a nomination committee to oversee various governance aspects[148]. - The company has adopted the standard code of conduct for securities trading, ensuring all directors comply with necessary standards[136]. - The board's decisions require approval from a majority of directors, ensuring collective decision-making for the company's best interests[137]. - The company emphasizes high transparency in communications with shareholders, providing timely and accurate information through annual reports and announcements[177]. Environmental Commitment - The company reported emissions reductions of over 1,568,793 tons of CO2, 75 tons of smoke, 373 tons of sulfur dioxide, and 354 tons of nitrogen oxides[4]. - The company continues to focus on the clean energy market, which is entering a new phase despite the declining costs of solar power generation[38]. - The company provides clean energy and low-carbon energy-saving integrated solutions[200]. - The company is committed to developing new technologies in the clean energy sector[200]. - The company has a strong focus on expanding its clean energy business through strategic partnerships and acquisitions[200]. Employee and Shareholder Engagement - The company has 5,896 employees as of December 31, 2019, down from 6,330 employees a year earlier[110]. - The company is taking necessary measures to mitigate the impact of COVID-19 on its operations and employee safety[109]. - The board's attendance at shareholder meetings was 100%, reflecting commitment to shareholder engagement[180]. - The company has mechanisms in place to encourage employees to report misconduct or fraud, enhancing ethical behavior within the organization[173]. - The company provides training for directors to ensure they understand their responsibilities and stay updated on regulatory obligations[143].

Revenue Performance - The company recorded revenue of RMB 5,274.0 million for the six months ended June 30, 2019, representing a 5.3% increase from RMB 5,010.4 million in the same period of 2018[16]. - Revenue from solar product manufacturing and sales, as well as photovoltaic system installation services, grew by 5.4% to RMB 4,326.0 million[17]. - The solar power generation segment contributed RMB 727.2 million to the company's revenue, reflecting an 8.1% increase compared to RMB 672.0 million in 2018[17]. - Revenue increased by RMB 263.6 million or 5.3% to RMB 5,274.0 million compared to RMB 5,010.4 million in the same period of 2018[32]. - Revenue from solar power generation increased by RMB 54.4 million or 8.1% to RMB 727.2 million, with total generation of 929,254 MWh[39]. - Revenue from meteocontrol's solar power station monitoring services grew by RMB 10.4 million or 16.6% to RMB 73.3 million[40]. - Revenue from electricity subsidies recognized during the six months ended June 30, 2019, amounted to RMB 509,891,000, with RMB 45,984,000 related to certain grid-connected solar power stations pending catalog registration[192]. Sales and Market Dynamics - Sales to customers in China accounted for approximately 36.2% of total revenue, down from 58.2% in 2018, while overseas sales increased to 63.8% from 41.8%[27]. - Solar product sales volume reached 2,470.9 MW, a growth of 25.5% from 1,969.2 MW in the same period of 2018[24]. - Solar product sales volume rose to 2,470.9 MW, up from 1,969.2 MW in 2018, contributing to 81.9% of total revenue[33]. Financial Performance - Gross profit increased by RMB 336.8 million or 49.0% to RMB 1,024.3 million[45]. - The company incurred a loss of RMB 73.0 million, a reduction of 88.9% from a loss of RMB 658.3 million in the same period of 2018[47]. - Loss before tax decreased by RMB 810.5 million to RMB 231.0 million from RMB 1,041.5 million in the same period of 2018[56]. - Income tax expense decreased by RMB 96.9 million or 86.1% to RMB 15.6 million from RMB 112.5 million in the same period of 2018, mainly due to a reduction in deferred tax expenses[57]. - Total loss for the period decreased by RMB 907.5 million to RMB 246.5 million from RMB 1,154.0 million in the same period of 2018[58]. - The net loss for the six months ended June 30, 2019, was RMB 246,544 thousand, a reduction from a net loss of RMB 1,153,999 thousand in the prior year, reflecting an improvement of approximately 78.6%[109]. - The company reported a basic and diluted loss per share of RMB (5.03) for the six months ended June 30, 2019, an improvement from RMB (26.78) in the same period of 2018[109]. Operational Efficiency - Distribution and selling expenses increased by RMB 180.0 million or 86.7% to RMB 387.6 million, primarily due to increased shipping costs from higher sales to overseas customers[48]. - Inventory turnover days increased to 48.3 days from 40.2 days as of December 31, 2018, primarily due to longer shipping times from China to overseas customers[59]. - Trade receivables turnover days increased to 124.3 days from 103.9 days as of December 31, 2018, mainly due to new overseas customers and delayed electricity subsidies[60]. Debt and Liquidity - Current ratio remained at 0.55 as of June 30, 2019, with a net cash deficit of RMB 13,014.9 million compared to RMB 12,889.3 million as of December 31, 2018[63]. - Net debt to equity ratio increased from 353.4% as of December 31, 2018, to 381.6% as of June 30, 2019[64]. - The company is actively seeking refinancing and/or extension of debt maturities to improve short-term liquidity and address upcoming debt obligations[130]. - The company has successfully negotiated extensions on loans totaling RMB 2,199 million and RMB 862 million, with repayment terms extended into 2020[132]. - As of June 30, 2019, the company had short-term bank and other borrowings amounting to RMB 3,352 million, with RMB 535 million due shortly thereafter, including a principal amount of RMB 490 million from an independent financial institution[136]. - The company is currently negotiating a settlement plan with the independent financial institution regarding the repayment of RMB 556.1 million, which includes principal and interest[136]. - Following the sale of certain solar power plants, the company expects to receive cash payments of RMB 1,945 million, which will be used to repay outstanding debts[141]. Strategic Initiatives - The company aims to become a global leader in clean energy and low-carbon energy-saving integrated solutions, actively seeking diversification into other clean energy-related businesses[27]. - The company is currently involved in legal proceedings regarding an outstanding loan of approximately RMB 490 million, with related interest of about RMB 66.1 million, totaling RMB 556.1 million[75]. - The company is in preliminary discussions with potential investors regarding the sale of solar power plants with a total capacity of approximately 300 MW located in China[77]. - The proposed plans, including potential sales and refinancing, aim to enhance the company's financial stability and asset structure[77]. Compliance and Governance - The company’s audit committee reviewed the interim financial statements and confirmed compliance with relevant accounting standards and regulations[83]. - The company has adopted a standard code of conduct for securities trading, with all directors confirming compliance during the reporting period[81]. - The company has not disclosed any other interests or short positions in its shares by directors or senior management as of June 30, 2019[100]. Accounting Policies - The company applies IFRS 16 "Leases" to recognize right-of-use assets at the lease commencement date, measured at cost less any accumulated impairment losses[154]. - Lease liabilities are recognized at the present value of unpaid lease payments, using the incremental borrowing rate if the implicit rate is not readily determinable[160]. - The company has chosen to apply the modified retrospective approach for the initial application of IFRS 16, with cumulative effects recognized in retained earnings as of January 1, 2019[169]. - The company applies recognition exemptions for short-term leases and low-value asset leases, recognizing lease payments as expenses on a straight-line basis over the lease term[152]. Future Outlook - Future outlook and guidance were not explicitly provided in the documents, suggesting a need for further clarification in upcoming communications[119]. - The company continues to face significant financial challenges, as evidenced by the ongoing net losses and comprehensive losses reported[119].