Core Viewpoint - The performance report of Shango New Energy for 2024 reveals surprising results, with revenue reaching 4.423 billion RMB and net profit at 463 million RMB, reflecting a year-on-year growth of approximately 32% [1] Group 1: Performance Highlights - Shango New Energy's revenue and net profit exceeded market expectations, with previous forecasts estimating revenue at around 4.4 billion RMB and net profit at approximately 410 million RMB [1] - The company demonstrated strong resilience despite challenges such as wind and solar power curtailment and fluctuating electricity prices, achieving steady revenue growth and rapid profit increase [1] Group 2: Business Structure and Strategy - The structural adjustment of the business layout was key to stabilizing revenue, with wind power business achieving significant growth, offsetting a decline in solar power revenue [3] - Wind power revenue reached 1.187 billion RMB, a year-on-year increase of 24.2%, accounting for 26.8% of total revenue, up 5.5 percentage points from the previous year [3] - The company strategically shifted focus to wind power projects, successfully bidding for multiple wind power projects, laying a foundation for future growth [3] Group 3: Financial Strategy - Shango New Energy's innovative financial strategies contributed to the increase in net profit, with financial expenses decreasing by 16% to 1.147 billion RMB and the financial expense ratio dropping from 30.6% to 25.9% [4] - The company utilized innovative financing tools and optimized debt structure to reduce costs, maintaining stable growth despite subsidy reductions in the industry [4] Group 4: Operational Efficiency - The implementation of an AIoT-based smart operation and maintenance platform enhanced operational efficiency, leading to cost reduction and improved power generation efficiency [5] Group 5: Strategic Ecosystem Development - Shango New Energy is transitioning from a single power generation competition to a comprehensive energy service model, focusing on the entire lifecycle value creation [6] - The company is building an energy service ecosystem covering "source-network-load-storage" through technology collaboration and application scenario expansion [7][8][9] Group 6: ESG Performance and Global Expansion - The company has integrated ESG principles into its core strategy, achieving significant results, including a total operational power generation of approximately 6.52 billion kWh, a year-on-year increase of 4.6% [10] - Shango New Energy is expanding its global footprint, particularly in Southeast Asia, South Asia, and the Middle East, leveraging its strong ESG performance to enhance international business opportunities [11][12] Group 7: Market Valuation and Investment Potential - As of December 31, 2024, Shango New Energy had cash and cash equivalents of approximately 3.646 billion RMB, with a current ratio of 1.87, while its market capitalization was around 3.5 billion RMB [13] - The significant discrepancy between market valuation and actual cash reserves indicates a potential undervaluation, suggesting an opportunity for investors [13][14]

Core Viewpoint - Shandong High New Energy Group has reported a solid performance for the year 2024, showcasing growth in both solar and wind energy sectors, supported by strong financial management and a favorable credit rating [1][4]. Financial Performance - The company achieved a revenue of 4.423 billion RMB, with an EBITDA of approximately 3.672 billion RMB, reflecting a year-on-year increase of about 1% [1]. - Net profit reached approximately 463 million RMB, marking a year-on-year growth of about 32% [1]. - Cash and cash equivalents stood at around 3.646 billion RMB, with a current ratio of 1.87 [1]. - Financial expenses decreased by approximately 16% to about 1.147 billion RMB, while the debt-to-asset ratio improved to around 60%, down about 5% from the previous year [1]. Business Development - The company is focusing on both centralized and distributed solar projects, enhancing its market penetration and operational scale [3]. - As of December 31, 2024, the total operational power generation reached approximately 6.52 billion kWh, a year-on-year increase of 4.6% [2]. - The clean heating area expanded to 35.321 million square meters, with a 4% increase in service households reaching 211,144, up 6.4% year-on-year [2]. Strategic Initiatives - The company has secured significant wind power project bids, including 375 MW of centralized wind power in Shandong and 1 GW in Xinjiang, further solidifying its market position [3]. - New business models are being explored, such as "offshore wind power + marine ranching," aiming for breakthroughs in offshore wind projects [3]. Credit Rating and ESG Performance - The company received an AAA long-term credit rating with a stable outlook from a top domestic rating agency, reflecting its strong operational performance and asset structure [4]. - ESG ratings improved, with a score of 75 from Fitch and a 41 from S&P Global, indicating enhanced sustainability practices [4]. Future Outlook - The company aims to accelerate the implementation of green energy projects and optimize its business structure in alignment with national carbon neutrality goals [5]. - Plans include deepening the integration with Shandong High-speed Group's ecosystem and exploring new models in energy digitalization [5].

Financial Performance - The group's profit for the year ended December 31, 2024, was approximately RMB 462.8 million, an increase of about 32% compared to RMB 350.3 million in 2023[2]. - Basic and diluted earnings per share were RMB 12.65, down from RMB 15.22 in 2023[2]. - Total revenue for the year was RMB 4,423.1 million, a decrease from RMB 4,486.9 million in 2023[3]. - Gross profit for the year was RMB 2,021.4 million, down from RMB 2,179.7 million in 2023[3]. - The total comprehensive income for the year was RMB 352.7 million, compared to RMB 211.5 million in 2023[4]. - The group's EBITDA for the year was approximately RMB 3,672.1 million, a slight increase of about 1% from RMB 3,652.4 million in 2023[2]. - The total operating revenue for the group in 2024 was RMB 4,423,147,000, a decrease of 1.4% from RMB 4,486,942,000 in 2023[12]. - The revenue from photovoltaic power generation business decreased to RMB 2,486,893,000 in 2024 from RMB 2,716,595,000 in 2023, representing a decline of 8.4%[12]. - Wind power business revenue increased to RMB 1,186,855,000 in 2024, up 24.2% from RMB 955,702,000 in 2023[12]. - Other income and net gains totaled RMB 242,918,000 in 2024, a significant decrease of 54.1% compared to RMB 529,100,000 in 2023[12]. Financial Position - The debt-to-asset ratio at year-end decreased to approximately 60% from 65% in 2023, with cash and cash equivalents at approximately RMB 3,645.6 million[2]. - Current assets totaled RMB 16,577.3 million, a slight decrease from RMB 16,825.2 million in 2023[6]. - The total equity of the company increased to RMB 19,358.0 million from RMB 17,545.2 million in 2023[6]. - Total assets as of December 31, 2024, were approximately RMB 48,404.5 million, compared to RMB 49,754.9 million in 2023, while total liabilities decreased to approximately RMB 29,046.5 million from RMB 32,209.7 million[31]. - The company’s net asset value increased to approximately RMB 19,358.0 million, up from RMB 17,545.2 million in the previous year[31]. - The total tax expense for the year 2024 is RMB 195,984,000, a decrease of 10.67% from RMB 219,520,000 in 2023[15]. - The company has a total of RMB 890,344,000 in trade payables as of 2024, down from RMB 1,351,351,000 in 2023[23]. - The company’s cash and cash equivalents as of December 31, 2024, were approximately RMB 3,645.6 million, with a focus on raising funds through long-term bank loans and strategic investments for clean energy development[99]. Operational Highlights - The company plans to continue focusing on the development and management of photovoltaic and wind power businesses in China[9]. - The company aims to align with national energy policies, targeting a reduction of energy consumption and carbon emissions by approximately 2.5% and 3.9% respectively for the year 2024[34]. - The installed capacity of solar power reached approximately 89 million kW, growing by 45.2% year-on-year, while wind power capacity increased by 18.0% to approximately 52 million kW[36]. - The company has secured a total installed capacity of over 5.5 GW for power generation projects under construction and approved for construction, with 20 projects of 100 MW or more[39]. - The company aims to achieve a national renewable energy utilization rate of no less than 90% by 2027, with an annual addition of over 200 million kW of new energy[37]. - The company is focusing on project incubation, expansion, and deep implementation as core drivers for high-quality development[38]. - The company has successfully launched six distributed photovoltaic projects in highway service areas, contributing to its distributed energy business strategy[41]. - The company is actively expanding its clean heating services and aims to become a leading comprehensive clean energy service provider[38]. Strategic Initiatives - The company is committed to enhancing its technological innovation capabilities and market competitiveness in response to national policy initiatives[37]. - The company has established strong strategic partnerships with leading enterprises to explore innovative models combining green energy and water resource management[42]. - The company is prioritizing wind power projects as a core segment, reflecting its confidence and determination in the renewable energy market[44]. - The group is actively conducting long-term power marketing in 11 provinces, with a projected annual trading volume of 1.36 billion kWh from 23 projects totaling 1.9 GW capacity[47]. - The company is set to benefit from national policies that support the addition of over 20 million kW of renewable energy capacity from 2025 to 2027[73]. Governance and Compliance - The company maintained compliance with corporate governance codes, focusing on transparency and accountability in operations[119]. - Changes in the board included the resignation of Mr. He Yongbing as an executive director effective February 20, 2025, and the appointment of Mr. Liu Zhijie as an executive director on February 28, 2025[120]. - The audit committee has reviewed the annual performance and confirmed compliance with applicable accounting policies and listing rules[123]. - The company has adopted its own code of conduct for securities trading by directors, ensuring compliance with standard codes[122]. - The company has conducted an internal investigation and engaged internal control consultants to address the identified deficiencies[121]. Employee and Community Engagement - The group employed 1,886 employees as of December 31, 2024, down from 2,106 employees in 2023, reflecting a focus on optimizing workforce efficiency[105]. - The company expresses gratitude to shareholders, business partners, and employees for their support and contributions during the year[126].

Renewable Energy Projects and Capacity - The company's total installed capacity for photovoltaic power generation projects is 50 MW or above, with operations in multiple provinces including Hebei, Henan, and Shandong[7] - The company's wind power projects are located in Henan, Shandong, and Inner Mongolia, with specific sites such as Qixian Huangdong and Binzhou Luxa[7] - The company's total capacity of power generation projects under construction and approved for construction reached 1.9 GW by the end of the reporting period[12] - The company secured over 350 MW of wind power indicators from the second batch of centralized onshore wind power projects in Shandong Province during the "14th Five-Year Plan" period[12] - The company obtained 400 MW of centralized wind power projects in Guangxi and 175 MW of distributed wind power projects in Shandong[12] - The company successfully acquired a 387.5 MW centralized onshore wind power project in Heze, Shandong Province, marking a significant breakthrough in independent development[12] - The company has reported and locked potential key projects with a total scale of approximately 3.4 GW in the centralized photovoltaic power generation business[12] - The company is expanding its photovoltaic market in North China and implementing a diversified regional development strategy[12] - The company is advancing 22 key distributed photovoltaic power generation projects, covering provinces in Northeast, North, Central, and Southwest China, with the first six highway service area projects already connected to the grid[13] - The company has reported and locked potential key wind power projects with a total scale of approximately 3.7 GW, with some key projects already implemented after the reporting period[13] - The company's operation and maintenance service scale increased by approximately 460 MW during the reporting period, with a cumulative scale exceeding 2.4 GW, and operational efficiency improved by over 60% through digital transformation[13] - The company completed green power transactions for two parity projects, with an annual green power transaction volume of nearly 70 million kWh, generating green power revenue of approximately RMB 1.3 million[14] - The company operates 54 centralized photovoltaic power stations with a total grid-connected capacity of 2,562 MW, up from 2,362 MW in 2023[20] - The total electricity generation from centralized photovoltaic power stations reached 1,496,021 MWh, a slight increase from 1,493,448 MWh in the previous year[21] - The majority of the company's centralized photovoltaic power stations are located in China's central and eastern regions, classified under Class II and III photovoltaic resource zones by the National Development and Reform Commission[22] - The total grid-connected capacity of photovoltaic power stations in China reached 2,556 MW as of June 30, 2024, compared to 2,356 MW in the same period last year, representing an increase of 8.5%[23] - The total electricity generation from photovoltaic power stations in China was approximately 1,493,371 MWh as of June 30, 2024, a slight increase from 1,491,473 MWh in the previous year[23] - The weighted average utilization rate of centralized photovoltaic power stations decreased to 87.69% in 2024 from 92.80% in 2023, a decline of 5.11 percentage points[24] - The distributed photovoltaic power generation business generated revenue of approximately HKD 356.3 million in 2024, down from HKD 394.0 million in 2023, with a total installed capacity of 860 MW, up from 800 MW in the previous year[25] - The wind power business saw significant growth, with revenue increasing to HKD 729.0 million in 2024 from HKD 654.9 million in 2023, and the total grid-connected capacity of wind power stations reaching 1,176 MW, up from 790 MW in the previous year[27] - The total electricity generation from wind power stations was approximately 1,530,719 MWh in 2024, compared to 1,151,334 MWh in 2023, representing a 33% increase[28] - The weighted average utilization rate of wind power stations decreased to 94.75% in 2024 from 96.95% in 2023, a decline of 2.20 percentage points[31] - The company established Shandong High-speed Luzhong New Energy Co., Ltd. to jointly build a 100 MW/200 MWh independent energy storage project in Xintai City, Shandong Province, marking the start of its first large-scale independent energy storage project[36] - The company is actively promoting a pumped-storage power generation project in Lianzhou City, Guangdong Province, with an expected total scale of 2.4 GW[36] - The company successfully conducted its first green electricity transaction and is preparing to establish a carbon trading platform, integrating it with green electricity, green certificates, and power generation management[37] - The company signed a framework agreement with Beijing Century Interconnect Broadband Data Center Co., Ltd. and the Ulanqab Municipal Government in Inner Mongolia to explore the extensive application of new energy and support the city's energy structure transformation and sustainable development goals[37] - The company aims to enhance its core competitiveness by entering the energy storage industry, implementing the "power + computing power" model, accelerating power marketization, and building a green certificate and carbon asset management platform[39] Clean Heating Services - The company's clean heating business operates in several provinces including Liaoning, Ningxia, and Shaanxi, with multiple projects in each region[7] - The company achieved a clean heating area of 34,548,000 square meters, a year-on-year increase of 3.3%, and served 202,667 households, a year-on-year increase of 3.1%[14] - The company and its joint ventures held and/or managed 12 operational clean energy projects as of June 30, 2024, with a total clean heating area of 34.55 million square meters, a 3.3% increase year-over-year, and 202,667 users, a 3.1% increase year-over-year[34] - The company's clean heating service revenue for the reporting period was HK$373.6 million, a 2.3% decrease compared to HK$382.4 million in the same period last year, primarily due to the depreciation of the RMB against the HKD and the increase in heating area[34] - The clean heating area in East and Central China increased by 27.3% to 2.732 million square meters, and the number of users increased by 27.9% to 20,393 households[35] Corporate Governance and Leadership - The company's corporate structure includes a 43.45% stake held by Shandong Hi-Speed Holdings Group Limited[7] - The company's board of directors underwent changes, with Mr. Wang Xiaodong resigning as Chairman and Mr. Li Tianzhang being appointed as the new Chairman effective August 2, 2024[4] - The company's audit committee is chaired by Mr. Wong Wai Tak, with members including Mr. Yeung Cheung Leung and Mr. Zhao Gongzhi[5] - Wang Xiaodong resigned as Executive Director, Chairman of the Board, and Chairman of the Nomination Committee, effective August 2, 2024, with Li Tianzhang appointed to these positions on the same date[69] - Li Tianzhang was appointed as an executive director, chairman of the board, and member and chairman of the executive and nomination committees, effective August 2, 2024[93] - The audit committee reviewed the unaudited interim results for the six months ended June 30, 2024, and confirmed compliance with applicable accounting standards and disclosure requirements[94] Financial Performance and Metrics - The company aims to reduce energy consumption per unit of GDP by approximately 2.5% and CO2 emissions by 3.9% in 2024[10] - The company targets a non-fossil energy consumption ratio of 18.9% in 2024, with a goal of reaching 20% by 2025[10] - The company plans to achieve energy savings of 50 million tons of standard coal and reduce CO2 emissions by 130 million tons through energy-saving and carbon reduction transformations in key sectors by 2025[10] - The company saved over RMB 161 million (approximately HKD 174 million) in financial expenses through cost control and financial optimization measures[14] - The company successfully raised RMB 2 billion (approximately HKD 2.167 billion) in equity financing, effectively reducing the asset-liability ratio and enhancing financial stability[14] - The company completed the construction of its treasury system and successfully launched the financial sharing system, optimizing internal structure to improve resource utilization efficiency[15] - The company's total electricity generation reached approximately 3.376 million MWh, a 14.56% increase compared to the same period in 2023[17] - The total operating electricity generation, including joint ventures and associates, was approximately 3.436 million MWh, a 3.12% increase year-over-year[17] - Revenue from electricity sales and entrusted operation services decreased by 5% to HKD 2,205.5 million compared to HKD 2,326.3 million in the same period last year[18] - Revenue from centralized photovoltaic power generation accounted for 42% of total revenue, amounting to HKD 1,097.3 million, down from HKD 1,204.0 million (43% of total revenue) in the previous year[19] - Revenue for the six months ended June 30, 2024, was HK$2,606.0 million, a decrease of 6% compared to HK$2,769.4 million in the same period last year[40][42] - Gross profit decreased by 11% to HK$1,326.7 million, with gross margin declining by 2.9 percentage points to 50.9%[40][45] - Net profit for the period increased by 13% to HK$399.9 million, while profit attributable to equity holders decreased by 17% to HK$299.0 million[40] - Total assets as of June 30, 2024, were HK$54,230.8 million, a slight decrease of 1% compared to December 31, 2023[40][41] - Equity increased by 10% to HK$21,135.4 million, driven by strategic investments and trust plan funding[41] - Electricity sales revenue decreased by 3.1% to HK$2,182.6 million, but increased by 1.2% in RMB terms to RMB 2,014.1 million[42] - Gross profit from electricity sales accounted for 95% of the total gross profit, up from 93% in the same period last year[44] - Other income and net gains increased to HK$181.9 million, including a significant rise in exchange gains to HK$52.8 million[46] - Administrative expenses rose to HK$256.3 million, primarily due to increased bank fees from larger financing replacement activities[46] - Other operating expenses net amount was approximately HKD 15.8 million, including a loss of HKD 8.8 million from the sale of property, plant, and equipment[47] - Financial expenses decreased by HKD 61.9 million to HKD 719.3 million, primarily due to the replacement of high-cost financing with low-cost financing and early repayment of high-cost overseas loans[47] - Property, plant, and equipment decreased mainly due to the development of clean energy projects, depreciation provisions, and the impact of RMB depreciation against HKD[48] - Investment properties include an office in Hong Kong and four parking spaces, all leased to independent third parties[49] - Goodwill arose from the acquisition of subsidiaries since 2016[49] - Contract assets increased to HKD 886.0 million, mainly due to the recognition of renewable energy subsidies from the Chinese central government for photovoltaic and wind power projects[53] - Trade receivables and bills increased to HKD 9,410.0 million, with HKD 8,236.8 million from electricity sales of photovoltaic and wind power projects[54] - Prepayments, deposits, other receivables, and financial assets at fair value increased by HKD 336.2 million to HKD 4,693.6 million, driven by the development and construction of clean energy projects[55] - Cash and cash equivalents decreased by HKD 225.0 million to HKD 4,667.4 million, influenced by strategic investor funding, debt repayments, and cash outflows for clean energy projects[56] - Trade payables and bills payable decreased to HKD 1,091.1 million as of June 30, 2024, from HKD 1,485.8 million as of December 31, 2023, primarily due to payments for clean energy project development[57] - Other payables and accrued expenses increased by HKD 46.9 million to HKD 1,408.9 million as of June 30, 2024, driven by payments to contractors and suppliers for construction and equipment[58] - Interest-bearing bank borrowings and other borrowings, including corporate bonds, decreased by HKD 1,897.8 million to HKD 28,767.7 million as of June 30, 2024, with a reduction in current liabilities by HKD 2,770.7 million[59] - Capital expenditures for the period totaled HKD 255.7 million, a significant decrease from HKD 1,064.6 million in the same period last year, with HKD 147.7 million allocated to photovoltaic and wind power projects[59] - Cash and cash equivalents stood at HKD 4,667.4 million as of June 30, 2024, down from HKD 4,892.4 million as of December 31, 2023, reflecting funding needs for clean energy projects[60] - The company's debt-to-asset ratio improved to 61% as of June 30, 2024, down from 65% as of December 31, 2023, following strategic investments and trust fund establishment[61] - Long-term borrowings accounted for 79% of total borrowings as of June 30, 2024, up from 71% as of December 31, 2023, indicating a shift towards more stable financing[61] - The company's liquidity ratio was 2.14 as of June 30, 2024, indicating strong financial reserves for business development[61] - No significant contingent liabilities were reported as of June 30, 2024, consistent with the previous reporting period[62] - All outstanding amounts under the syndicated term loan agreements were fully repaid by June 30, 2024, and the agreements were terminated[64] - The company completed the repurchase of 30% equity in Heat Power Company for a total consideration of RMB 49,982,500, with subsequent reductions in the consideration for other repurchase agreements, resulting in a final registered capital reduction from RMB 960,000,000 to RMB 672,000,000[65] - The company secured a RMB 5,000,000,000 cash investment from Ping An, with RMB 3,441,580,300 allocated to increase registered capital and RMB 1,558,419,700 to capital reserves, leading to Ping An holding approximately 44.46% equity in Tianjin Fuhuan[66] - The company acquired 100% equity in Nanyang Qingdian for RMB 200,000,000, along with assuming up to RMB 600,000,000 in debt, totaling RMB 800,000,000, to gain control of a 100 MW wind power and smart energy storage project in Henan Province[67] - The company invested RMB 670,000,000 in a trust plan, with the trust plan being recorded as a non-wholly owned subsidiary of the group[67] - The company employed 2,051 full-time employees as of June 30, 2024, with total employee costs of approximately HKD 210.4 million for the first six months of 2024[68] - The company did not recommend an interim dividend for the six months ended June 30, 2024[69] - Revenue for the six months ended June 30, 2024, was HKD 2,606,014 thousand, a decrease of 5.9% compared to HKD 2,769,414 thousand in the same period in 2023[95] - Gross profit for the period was HKD 1,326,736 thousand, down 10.9% from HKD 1,489,031 thousand in 2023[95] - Net profit attributable to equity holders of the company was HKD 298,981 thousand, a decrease of 16.8% from HKD 359,530 thousand in 2023[95] - Total comprehensive loss for the period was HKD 142,000 thousand, significantly improved from HKD 661,098 thousand in 2023[96] - Non-current assets as of June 30, 2024, totaled HKD 35,133,239 thousand, a decrease of 3% from HKD 36,206,371 thousand at the end of 2023[97] - Current assets as of June 30, 2024, were HKD 19,097,547 thousand, an increase of 3.2% from HKD 18,499,401 thousand at the end of 2023[97] - Total equity as of June 30, 2024, was HKD 21,135,401 thousand, up 9.6% from HKD 19,291,012 thousand at the end of 2023[98] - Net current assets as of June 30, 2024, were HKD 10,168,103 thousand, a significant increase of 57% from HKD 6,477,822 thousand at the end of 2023[98] - Total equity as of June 30, 2024, was HKD 21,135,401,000, compared to HKD 14,428,659,000 on June 30, 2023, reflecting significant growth[100] - Net profit for the period ending June 30, 2024, was HKD 298,981,000, a decrease from HKD 359,530,000 in the same period in 2023[99][100] - Exchange rate differences for overseas operations resulted in a loss of HKD 505,238,000 in 2024, compared to a loss of HKD 937,741,000 in 2023[99][100] - Cash flow from operating activities for 2024 was HKD 661,250,000, down from HKD 759,207,000 in 2023[101] - Investment activities used a net cash flow of HKD 795,565,000 in 2024, a significant improvement from HKD 1,657,597,000 in 2023[

Financial Performance - The group's profit for the six months ended June 30, 2024, was approximately HKD 399.9 million, an increase of about 13% compared to HKD 355.4 million for the same period last year[2]. - EBITDA for the reporting period was approximately HKD 2,139.2 million, an increase of about 8% from HKD 1,977.5 million in the same period last year[2]. - Basic and diluted earnings per share for the six months ended June 30, 2024, were both HKD 0.1331, down from HKD 0.1600 in the previous year[2]. - The group reported a total comprehensive loss of HKD 142.0 million for the period, compared to a loss of HKD 661.1 million in the previous year[5]. - The total revenue for the six months ended June 30, 2024, was HKD 2,706,633,000, with a breakdown of HKD 127,514,000 from construction-related business and HKD 2,579,119,000 from clean energy projects[15]. - The company reported a pre-tax profit of HKD 507,351,000 for the period[13]. - The company reported a net profit attributable to equity holders of HKD 298,981 thousand for the six months ended June 30, 2024, down from HKD 359,530 thousand in 2023[30]. - The gross profit for the first half of 2024 was approximately HKD 1,327 million, down 11% from HKD 1,489 million in the previous year, resulting in a gross margin of 50.9%, a decrease of 2.9 percentage points[88][90]. - The overall gross margin decreased from 53.8% in the six months ended June 30, 2023, to 50.9%, a decline of approximately 2.9 percentage points, primarily due to increased power grid restrictions and lower comprehensive electricity prices[92]. Financial Position - The group's cash and cash equivalents at the end of the reporting period were approximately HKD 4,667.4 million, with a current ratio of 2.14, indicating sufficient financial reserves for business development[2]. - Non-current assets totaled approximately HKD 35,133.2 million as of June 30, 2024, down from HKD 36,206.4 million at the end of the previous year[6]. - Current assets amounted to approximately HKD 19,097.5 million, an increase from HKD 18,499.4 million at the end of the previous year[7]. - Total liabilities decreased to approximately HKD 33,095.4 million from HKD 35,414.8 million at the end of the previous year, reflecting improved financial health[7]. - The total equity increased to HKD 21,135,401,000 from HKD 19,291,012,000 year-over-year[8]. - The company's total assets as of June 30, 2024, were approximately HKD 54,231 million, a slight decrease of 1% from HKD 54,706 million at the end of 2023[89]. - The company's cash and cash equivalents were approximately HKD 4,667 million, down 5% from HKD 4,892 million at the end of 2023[88]. - The company's asset-liability ratio improved to approximately 61% as of June 30, 2024, down from 65% as of December 31, 2023, indicating better financial health[113]. Capital Expenditures and Investments - Capital expenditures for the period amounted to HKD 254,240,000, focusing on property, plant, and equipment[15]. - The group acquired property, plant, and equipment amounting to approximately 175,704,000 HKD for the six months ended June 30, 2024, a significant decrease from 1,018,852,000 HKD in the same period of 2023[32]. - The company has a capital commitment of HKD 138,511 thousand for the construction of clean energy projects as of June 30, 2024, compared to HKD 242,770 thousand as of December 31, 2023[47]. - The company completed equity financing of RMB 2 billion (approximately HKD 2.167 billion), effectively reducing its asset-liability ratio and enhancing financial stability[64]. - The company has secured a capital injection of RMB 5 billion (approximately HKD 5.45 billion) from strategic investors, enhancing its financial position[121]. Operational Performance - The company achieved a financial cost saving of over RMB 161 million (approximately HKD 174 million) through systematic cost control measures[64]. - The company is actively expanding its clean heating services, aiming to become a leading comprehensive clean energy service provider[59]. - The company has reported a significant increase in entrusted operation and maintenance services, with a cumulative scale surpassing 2.4 GW, and improved operational efficiency by over 60% through digital transformation[63]. - The company is focusing on regional diversification in project development, collaborating with local governments to ensure project sustainability and stability[62]. - The company is leveraging its shareholder resources to expand its wind power business, with potential key projects totaling approximately 3.7 GW reported and secured[62]. Market and Business Strategy - The company aims to enhance its market position through acquisitions and strategic investments in clean energy projects[14]. - The company is actively exploring new business models such as decentralized aggregation trading and virtual power plants to enhance its electricity marketing capabilities[63]. - The company is committed to high-quality development and aims to ensure stable performance in the second half of the year[65]. - The company has integrated ESG considerations into its business strategy and management, receiving a "Good" rating across various ESG indicators[65]. - The company is committed to maintaining transparency and timely communication with its stakeholders regarding financial performance and strategic initiatives[134]. Challenges and Risks - The company faced challenges such as a 4% depreciation of the RMB and increased competition, which led to a slight slowdown in business performance growth[66]. - The company maintains strict control over overdue receivables to mitigate credit risk, with regular reviews of overdue balances[36]. - The group’s tax expenses increased due to higher profits and the expiration of tax relief for certain operating subsidiaries[97]. Corporate Governance and Management - The board does not recommend the payment of an interim dividend for the six months ended June 30, 2024, consistent with no dividend declared for the same period in 2023[126]. - The company emphasizes high standards of corporate governance to enhance shareholder value and ensure accountability[129]. - The board of directors includes a diverse group of experienced professionals, ensuring strong governance and strategic oversight[139]. - The company is actively seeking a suitable candidate to fill the CEO position, which has been vacant since May 2022[129].

Financial Performance - In 2023, the company achieved an actual power generation of approximately 5.6 million MWh, representing a year-on-year growth of about 14.5%[12] - The company's revenue reached approximately HKD 4,963.4 million with a gross margin of about 48.6%, an increase of approximately 0.3% compared to the previous year[12] - Net profit for the period was approximately HKD 387.5 million, a year-on-year increase of about 71.6% from HKD 225.8 million[12] - The equity holders' profit attributable to the company was approximately HKD 378.2 million, reflecting a growth of about 46.5% compared to the previous year[12] - The group's profit for the year was approximately HKD 387.5 million, an increase from HKD 225.8 million in 2022, with equity holders' profit at HKD 378.2 million compared to HKD 258.2 million in the previous year[21] - The group's revenue for the year 2023 was approximately HKD 4,963.4 million, a decrease of 6% compared to HKD 5,296.2 million in 2022[34] - The net profit for the year increased by 72% to HKD 387.5 million, compared to HKD 225.8 million in the previous year[34] - The gross profit margin improved to 48.6%, up 0.3 percentage points from 48.3% in 2022[34] Operational Capacity and Projects - The total operational power generation capacity managed by the company and its joint ventures reached approximately 6.2 million MWh, a year-on-year increase of about 2.6%[12] - The company holds a cumulative installed capacity of approximately 2,526 MW for grid-connected centralized photovoltaic power stations as of December 31, 2023[12] - The company has a total installed capacity of approximately 800 MW for distributed photovoltaic power stations, primarily located in III category photovoltaic resource areas[13] - In 2023, the company achieved a wind power generation of approximately 2.1 million MWh, with an average utilization hours of 2,629 hours for operational wind power projects[15] - As of December 31, 2023, the company held a cumulative installed capacity of approximately 1,176 MW for connected wind power stations, primarily located in Henan, Shandong, and Inner Mongolia[15] - The company secured approximately 387.5 MW of concentrated onshore wind power projects in Shandong Province, marking a significant achievement in self-developed quality projects[11] - New wind and solar development indicators exceeded 1.6 GW in 2023, bringing the total capacity of projects under construction and approved to 1.9 GW[24] Strategic Development and Future Plans - The company aims to accelerate development in 2024, positioning it as a key year for growth, with a focus on becoming a leading domestic renewable energy enterprise[15] - The company plans to implement a large-scale development strategy, particularly in advantageous provinces like Qinghai, Jiangsu, and Shanxi, to establish multi-energy complementary new energy bases[15] - The company is focusing on the integration of energy storage and charging solutions in its distributed photovoltaic projects, particularly in transportation applications[28] - The company aims to enhance its distributed photovoltaic business by leveraging shareholder resources and exploring strategic partnerships, with new agreements signed with Yunnan Expressway and other subsidiaries of Shandong Expressway Group[27] - The company is actively researching clean zero-carbon technologies, including heat pumps and solar energy, to optimize its clean heating service model[31] - The group aims for high-quality, leapfrog growth in 2024, emphasizing a strong commitment to development[33] Investments and Financial Structure - The company received an investment of approximately HKD 4.7 billion from Shandong High-Speed Group and a national clean energy subsidy of approximately HKD 5.03 billion, significantly improving its capital structure[10] - The group successfully secured a strategic investment of RMB 5 billion from Ping An Asset Management, optimizing its capital structure and enhancing management standards[24] - The debt ratio decreased from 78% before the investment by Shankai Holdings to approximately 65%, a reduction of nearly 13 percentage points[34] - The total assets increased to approximately HKD 54,705.8 million, up from HKD 52,028.3 million in 2022, while total liabilities decreased to approximately HKD 35,414.8 million from HKD 36,936.5 million[21] Corporate Governance and Management - The company emphasizes high standards of corporate governance to enhance shareholder value and ensure accountability[146] - The company has established various committees, including the nomination committee, audit committee, remuneration committee, and sustainability committee, to enhance corporate governance practices[154] - The board of directors consists of 12 members, with 4 independent non-executive directors, meeting the requirement of one-third as per listing rules[148] - The company has adopted the standard code of conduct for securities trading by directors, confirming compliance throughout the year[149] - The company has implemented a management philosophy focused on long-term goals and innovation[145] - The company is actively seeking a suitable candidate to fill the CEO position following the resignation of the previous executive director[148] Risk Management and Internal Control - The group maintains a risk management framework based on a "three lines model" to ensure effective oversight and accountability[187] - The risk management process includes risk identification, assessment, and management to monitor and ensure appropriate internal controls[191] - The audit committee has reviewed the effectiveness of the risk management and internal control systems, finding them adequate and effective for the year[191] - The internal control mechanism of the company had deficiencies during the establishment of the repurchase agreement, leading to delays in disclosing transactions as required by listing rules[193] - The company plans to implement all recommendations from the internal control consultant to enhance the internal control system and prevent similar incidents in the future[198] Sustainability and ESG Initiatives - The company has committed to sustainable development strategies and environmental contributions, as detailed in the Environmental, Social, and Governance report published on its website[124] - The Sustainability Committee held its first meeting and outlined a three-year ESG management enhancement roadmap, focusing on six key management directions and four disclosure channels[178] - The group received ten awards related to ESG and investor relations, reflecting its strong alignment with ESG principles[33]

Financial Performance - The group's profit for the year was approximately HKD 387.5 million, an increase of about 71.6% compared to HKD 225.8 million in the previous year[2]. - The profit attributable to equity holders of the company was approximately HKD 378.2 million, up approximately 46.5% from HKD 258.2 million in the previous year[2]. - The group's EBITDA was approximately HKD 4,040.3 million, an increase of about 10.2% from HKD 3,666.1 million in the previous year[2]. - Basic and diluted earnings per share for the year were both HKD 0.1683, compared to HKD 0.1375 in the previous year[3]. - The group's operating revenue for 2023 was approximately HKD 4,963.4 million, a decrease of 6% compared to HKD 5,296.2 million in 2022[45]. - The net profit for the year increased by 72% to HKD 387.5 million, up from HKD 225.8 million in the previous year[45]. - The gross profit margin improved to approximately 48.6%, up from 48.3% in the previous year[45]. - The gross profit from electricity sales for the year was approximately HKD 2,291.5 million, a slight increase of about 0.1% compared to HKD 2,290.0 million in 2022, with a gross profit margin of 56.4%, down from 61.1% in 2022[73]. Revenue and Sales - The group's revenue from electricity sales was approximately HKD 4,062.3 million, representing an increase of about 8.4% from HKD 3,749.1 million in the previous year[3]. - The revenue from electricity sales and entrusted operation services was approximately HKD 4,182.1 million, an increase of about 5.4% from HKD 3,969.5 million in 2022[47]. - The revenue from centralized photovoltaic power generation was approximately HKD 2,365.4 million, accounting for about 47.7% of the total operating revenue[48]. - The company recorded revenue of approximately HKD 1,057.2 million from wind power sales in 2023, up from HKD 750.7 million in 2022, marking a significant growth[57]. - The company's distributed photovoltaic power stations generated revenue of approximately HKD 639.6 million in 2023, slightly up from HKD 636.2 million in 2022[55]. Assets and Liabilities - The total assets of the group reached approximately HKD 54,705.8 million, up from HKD 52,028.3 million in the previous year, while total liabilities decreased to approximately HKD 35,414.8 million from HKD 36,936.5 million[36]. - Non-current assets increased to HKD 36,206,371 thousand in 2023 from HKD 35,442,845 thousand in 2022, representing a growth of 2.16%[8]. - Current assets rose to HKD 18,499,401 thousand in 2023, up from HKD 16,585,420 thousand in 2022, marking an increase of 11.54%[9]. - Total liabilities decreased from HKD 36,936,541 thousand in 2022 to HKD 35,414,760 thousand in 2023, a reduction of 4.11%[9]. - The company's net assets increased to HKD 19,291,012 thousand in 2023, compared to HKD 15,091,724 thousand in 2022, reflecting a growth of 27.56%[9]. - The group's debt-to-asset ratio decreased to approximately 65% following strategic financing initiatives[2]. Investments and Acquisitions - The group plans to acquire all equity of Nanyang Qingdian for a total consideration of RMB 800 million, which includes RMB 200 million for equity transfer and RMB 600 million for debt repayment[33]. - The group entered into an investment agreement to establish a joint venture with a total investment of RMB 45 million, with the company contributing RMB 13.5 million[34]. - The group completed the acquisition of 100% equity interests in three renewable energy companies for a total consideration of RMB 242,722,700[104]. - The company entered into a capital increase agreement with investors, raising approximately RMB 5 billion (about HKD 5.45 billion) to support its strategic initiatives[98]. - The total consideration for the acquisition and capital increase in Guangzhou Juwan Technology was approximately RMB 300,000,000, with a direct ownership of 2.69532% in Guangzhou Juwan post-transaction[112]. Operational Highlights - The group achieved a power generation of approximately 5.6 million MWh in the fiscal year, representing a growth of about 14.5% compared to 4.9 million MWh in the previous year[36]. - The total installed capacity of the group's photovoltaic and wind power projects increased by 157 MW and 588 MW, respectively, representing growth rates of approximately 6.6% and 100%[3]. - The total installed capacity of the company's photovoltaic power stations in China reached approximately 2,526 MW in 2023, with a total power generation of about 2,930,309 MWh[50]. - The total grid-connected capacity of wind power stations reached 1,176 MW in 2023, an increase from 588 MW in 2022[57]. - The company operates 19 wind power stations as of December 31, 2023, compared to 13 in the previous year[57]. Strategic Initiatives - The company is focusing on the development of new energy technologies and expanding its market presence in response to the increasing demand for renewable energy solutions[37]. - The company aims to explore comprehensive energy management models integrating distributed solar, storage, and charging solutions, particularly in transportation and industrial applications[41]. - The company is preparing its first pumped storage project in Guangdong Province, which is expected to enhance local grid stability and economic development[66]. - The company plans to accelerate the development of data center green power market transactions in eastern developed regions, focusing on areas with high computing power demand and tight electricity supply[67]. - The company is committed to becoming a leading new energy enterprise with scale, industry recognition, and broad influence, capitalizing on national energy transition and green low-carbon development opportunities[70]. Governance and Compliance - The company has maintained compliance with the corporate governance code throughout the year, with the board consisting of 12 members, including 4 independent non-executive directors, meeting the requirement of one-third as per listing rules[118]. - The audit committee has reviewed the annual performance of the group, ensuring adherence to applicable accounting policies and listing regulations[121]. - The company's financial statements have been verified by auditors, confirming consistency with the draft financial reports for the year[122]. Employee and Talent Management - The group employed 2,106 employees as of December 31, 2023, up from 1,953 employees in the previous year[103]. - The group has established internal compensation policies to attract and retain talent, offering competitive salary packages and benefits[103].

Financial Performance - For the first half of 2023, the company achieved a revenue of approximately HKD 2,769.4 million, with a gross margin of 53.8%, an increase of about 7.2 percentage points from 46.6% in the same period last year[16]. - The net profit for the period was approximately HKD 355.4 million, representing a growth of about 4% compared to the same period last year[16]. - Operating revenue for the first half of 2023 was HKD 2,769,414, a decrease of 6% compared to HKD 2,938,362 in 2022[29]. - Gross profit increased by 9% to HKD 1,489,031, with a gross margin of 53.8%, up from 46.6% in the previous year[29]. - The group reported a profit of approximately HKD 355.4 million, a 4% increase from HKD 342.6 million in the same period last year[31]. - The company recorded a revenue of approximately HKD 2,769.4 million for the six months ended June 30, 2023, a decrease of about 6% compared to HKD 2,938.4 million for the same period in 2022[67]. - The group reported a pre-tax profit of HKD 359,530 for the six months ended June 30, 2023, slightly down from HKD 360,914 in the same period last year[152]. Operational Highlights - The total operational power generation of the company and its joint ventures reached approximately 3.322 million MWh, an increase of about 8.5% year-on-year[16]. - The company held a cumulative installed capacity of approximately 2,362 MW for grid-connected centralized photovoltaic power stations as of June 30, 2023[16]. - The company managed a total installed capacity of approximately 800 MW for distributed photovoltaic power stations as of June 30, 2023[18]. - The company completed wind power generation of approximately 1.152 million MWh in the first half of 2023, with an installed capacity of about 790 MW for wind power stations[18]. - The total operational electricity generation for the group and its joint ventures was approximately 3.322 million MWh, an increase of about 8.5% from 3.063 million MWh in the same period last year[31]. - The total installed capacity of renewable energy in China exceeded 1.322 billion kW, with a year-on-year growth of 18.2%[21]. - New photovoltaic installations reached 78.42 million kW in the first half of 2023, marking a 154% increase year-on-year[21]. Strategic Initiatives - The company aims to leverage new opportunities in the green electricity, green certificate, and carbon trading markets[15]. - The company is focusing on enhancing operational standards through information technology and precision management in its electricity sales business[16]. - The company aims to position itself as a leading provider of comprehensive renewable energy solutions in China, focusing on wind and solar energy development[21]. - The group aims to capitalize on national policies that support the rapid development of wind and solar power generation, with a projected annual renewable energy generation target of approximately 3.3 trillion kWh by 2025[34]. - The company is committed to supporting national carbon peak and carbon neutrality goals through sustainable development initiatives[28]. Financial Position - The total assets of the company as of June 30, 2023, were HKD 50,334,385, a decrease of 3% from HKD 52,028,265 in 2022[29]. - Cash and cash equivalents decreased by 13% to HKD 3,178,265 from HKD 3,637,264 in the previous year[29]. - The company's actual tax rate is lower than the standard corporate income tax rate of 25% in China due to certain subsidiaries enjoying tax relief during the reporting period[75]. - The total interest-bearing bank loans and other borrowings, along with corporate bonds, amounted to approximately HKD 31,087.1 million as of June 30, 2023, an increase of about HKD 1,009.3 million from HKD 30,077.8 million as of December 31, 2022[92]. - The net debt-to-equity ratio was approximately 66% as of June 30, 2023, compared to 64% as of December 31, 2022, due to increased bank borrowings for clean energy development[92]. Market and Customer Insights - The group’s electricity sales and entrusted operation services revenue reached approximately HKD 2,326.3 million, a 9% increase compared to HKD 2,143.3 million in the same period last year[32]. - The concentrated photovoltaic power generation business generated revenue of approximately HKD 1,204.0 million, accounting for about 43% of the total revenue for the group[35]. - The total installed capacity of the concentrated photovoltaic power stations increased to 2,362 MW, up from 2,306 MW in the previous year[37]. - The company aims to enhance its strategic focus on acquiring and maintaining high-quality major customers in the renewable energy sector[48]. - Over 90% of the company's revenue is generated from customers in mainland China, and more than 90% of its assets are located in mainland China[137]. Challenges and Risks - The actual clean heating area managed by the company decreased to approximately 33.45 million square meters as of June 30, 2023, down 26% from 45.33 million square meters a year earlier, with the number of clean heating service users dropping by 34% to approximately 196,602[60]. - Revenue from clean heating services was approximately HKD 382.4 million for the six months ended June 30, 2023, a decrease of about 41% from HKD 649.3 million in the same period of 2022[60]. - The company has initiated discussions with local government regarding the dismantling of the 60 MW Ying Shang project, which has ceased operations as of June 30, 2023[42]. - The company is actively pursuing compensation and subsidies from local governments to mitigate the impact of the Ying Shang project's dismantling[42]. Human Resources - The total employee cost for the six months ended June 30, 2023, was approximately HKD 242.4 million, up 24.7% from HKD 194.4 million for the same period in 2022[99]. - The company employed 2,059 full-time employees as of June 30, 2023, a slight decrease from 2,076 employees a year earlier[99]. - Total remuneration paid to key management personnel was HKD 889,000 for the six months ended June 30, 2023, a decrease of 90% from HKD 8,885,000 in the same period of 2022[188]. Investments and Acquisitions - The group completed the acquisition of 100% equity interests in three renewable energy companies for a total consideration of approximately RMB 242.7 million, finalized on January 1, 2023[94]. - The company is preparing its first pumped storage project in Guangdong Province, which is expected to significantly contribute to local economic development and job creation[65]. - The company is exploring new business models in collaboration with Shandong Expressway Group, with a potential installed capacity of 4 GW in various applications[48]. Shareholder Information - The company did not declare an interim dividend for the six months ended June 30, 2023, consistent with the previous year[99]. - The basic earnings per share for the first half of 2023 is 16.00 HK cents, down from 23.91 HK cents in the same period of 2022, reflecting a decrease of approximately 33.0%[153]. - The weighted average number of ordinary shares issued during the period increased to 2,246,588,726 from 1,508,957,365, indicating a significant increase in share count due to the share consolidation[153].

Financial Performance - For the six months ended June 30, 2023, the group recorded a gross profit of approximately HKD 1,489.0 million, an increase of about 9% compared to HKD 1,369.4 million for the same period in 2022[2]. - The gross profit margin improved from 46.6% for the six months ended June 30, 2022, to 53.8% for the current reporting period, attributed to ongoing business structure optimization and cost reduction efforts[2]. - The profit for the period was approximately HKD 355.4 million, representing a 4% increase from HKD 342.6 million for the same period in 2022[2]. - Basic and diluted earnings per share for the period were both HKD 0.16, compared to HKD 0.2391 (restated) for the same period in 2022[2]. - The company reported a profit attributable to equity holders of HKD 359,530,000 for the six months ended June 30, 2023, a slight decrease from HKD 360,914,000 in the same period of 2022[31]. - The company's profit before tax for the six months ended June 30, 2023, was HKD 434,819,000, compared to HKD 417,230,000 for the same period in 2022, representing an increase of approximately 4.0%[16][19]. - The total revenue from customer contracts for the six months ended June 30, 2023, was HKD 2,769,414,000, a decrease of about 5.8% from HKD 2,938,362,000 in the same period of 2022[23][24]. - The company reported a net amount of unallocated income and expenses of (49,710) during the period[15]. - The company’s other income and gains for the six months ended June 30, 2023, amounted to HKD 114,589,000, significantly higher than HKD 53,187,000 in the same period of 2022[25]. - The total tax expense for the six months ended June 30, 2023, was HKD 79,401,000, compared to HKD 74,679,000 in 2022, representing an increase of about 6.9%[29]. Assets and Liabilities - Non-current assets totaled HKD 33,842.1 million as of June 30, 2023, down from HKD 35,442.8 million as of December 31, 2022[6]. - Current liabilities amounted to HKD 12,163.8 million, an increase from HKD 10,162.4 million as of December 31, 2022[7]. - The net asset value was HKD 14,428.7 million as of June 30, 2023, compared to HKD 15,091.7 million as of December 31, 2022[7]. - The total equity increased from 14,428,659 to 15,091,724, representing a growth of approximately 4.6%[8]. - The company’s total bank borrowings and other borrowings increased to HKD 31,603,959 as of June 30, 2023, up from HKD 30,572,721 as of December 31, 2022, representing a growth of 3.4%[43]. - The company’s total issued and fully paid ordinary shares as of June 30, 2023, were 2,246,588,726 shares, a significant decrease from 112,329,436,304 shares as of December 31, 2022[48]. - The company’s non-current portion of trade receivables decreased to HKD 2,444,596 as of June 30, 2023, compared to HKD 3,332,845 as of December 31, 2022, reflecting a decline of 26.7%[40]. - The company’s total bonds classified as current liabilities decreased to HKD 428,245 as of June 30, 2023, from HKD 527,366 as of December 31, 2022[46]. - The company’s other payables decreased to HKD 1,312,901 as of June 30, 2023, down from HKD 1,385,091 as of December 31, 2022, indicating a reduction of 5.2%[42]. Operational Performance - The weighted average utilization hours of wind power projects during the reporting period were 1,490 hours, exceeding the national average of 1,237 hours for wind power in China[2]. - The actual electricity generation reached 3.322 million MWh, an increase of 8.5% year-on-year[57]. - The group completed a power generation of approximately 2.898 million MWh, representing a 16.2% increase from 2.493 million MWh in the same period last year[59]. - The group’s operational power generation from concentrated solar power stations was approximately 1,465,813 MWh, up from 1,427,383 MWh in the same period last year[62]. - The company operates 16 wind power stations as of June 30, 2023, with a total installed capacity of 790 MW, an increase from 588 MW in the previous year[70]. - Revenue from wind power sales was approximately HKD 654.9 million for the six months ending June 30, 2023, up from HKD 508.1 million in the same period of 2022, indicating a growth of 28.9%[70]. - The company confirmed operating income of approximately HKD 7.3 million from entrusted management services for photovoltaic power stations for the six months ending June 30, 2023, down from HKD 9.0 million in the previous year[69]. - The company has initiated discussions with the local government regarding the dismantling of the Ying Shang project, which has a capacity of 60 MW, and has taken measures to mitigate the impact of this project’s removal[65]. Investments and Acquisitions - The company completed the acquisition of three renewable energy companies for a total consideration of approximately RMB 242.7 million, enhancing its portfolio in the clean energy sector[108]. - The company agreed to repurchase equity interests from minority shareholders, totaling approximately 10.52%, 7.29%, 5.52%, 2.92%, 2.71%, and 1.04% for a total consideration of RMB 45.5 million, RMB 45.54 million, RMB 34.48 million, RMB 18.22 million, RMB 16.9 million, and RMB 6.51 million respectively[109]. - The company has established a non-binding memorandum of cooperation with Shandong Expressway Group to develop low-carbon service areas, with a potential installed capacity of up to 4 GW[68]. Corporate Governance - The company emphasizes maintaining high levels of corporate governance to achieve sustainable development and enhance performance[120]. - The board of directors consists of 12 members, including 4 independent non-executive directors, complying with listing rules[120]. - The audit committee, composed of three independent non-executive directors, reviewed the unaudited interim results for the six months ending June 30, 2023[122]. - The company has adopted the standard code of conduct for securities trading by directors, confirming compliance for the six months ending June 30, 2023[121]. - The company acknowledges the support of shareholders and business partners during the reporting period[124]. Future Outlook and Strategy - The company aims to become a flagship enterprise in the renewable energy sector under Shandong High-Speed Group, focusing on solar and wind energy[57]. - The group aims to accelerate development in the renewable energy sector, supported by national policies targeting a 50% increase in renewable energy generation by 2025[60]. - The company is actively exploring organic coupling forms in the hydrogen energy sector, including "wind-solar electrolysis for hydrogen storage," to assist in the transition from gray hydrogen and blue hydrogen to green hydrogen[80]. - The company is preparing its first pumped storage project in Guangdong Province, which is expected to enhance local grid stability and contribute to economic development[79]. - The company is focusing on carbon-related businesses, including carbon asset development, trading, and finance, to ensure dynamic balance with the development of the power system[80].

Financial Performance - The group reported a profit of approximately HKD 225.8 million for the year ended December 31, 2022, compared to a loss of HKD 288.8 million in 2021, primarily due to a significant reduction in other operating expenses[2]. - EBITDA for the year was approximately HKD 3,666.1 million, an increase of about 25% compared to HKD 2,941.9 million in the previous year[2]. - Revenue for the year was approximately HKD 5,296.2 million, a decrease of about 12% from HKD 6,023.4 million in 2021, mainly due to business restructuring and currency fluctuations[2]. - Basic and diluted earnings per share were HKD 0.28, compared to a loss per share of HKD 0.62 in the previous year[2]. - The group reported a profit attributable to equity holders of HKD 258,236 in 2022, a recovery from a loss of HKD 321,312 in 2021[21]. - The total income tax expense for 2022 was HKD 57,655, compared to HKD 23,960 in 2021, indicating a substantial increase of 140.61%[18]. - The company confirmed a revenue of approximately HKD 923.6 million from clean heating services, a decrease of about 15.5% compared to HKD 1,092.4 million in the previous year[67]. Assets and Liabilities - Cash and cash equivalents increased to approximately HKD 3,637.3 million, up by HKD 2,496.5 million from the previous year, indicating strong financial reserves for business development[2]. - Non-current assets decreased to HKD 35,442.8 million from HKD 38,741.8 million in the previous year, primarily due to reductions in property, plant, and equipment[6]. - Current assets increased to HKD 16,585.4 million from HKD 16,132.5 million, driven by a rise in cash and cash equivalents[6]. - Current liabilities decreased from HKD 18,702,835 thousand in 2021 to HKD 10,162,375 thousand in 2022, a reduction of approximately 45.4%[7]. - Total assets increased from HKD 36,171,402 thousand in 2021 to HKD 41,865,890 thousand in 2022, representing a growth of about 15.9%[7]. - Non-current liabilities rose from HKD 24,089,348 thousand in 2021 to HKD 26,774,166 thousand in 2022, an increase of approximately 11.2%[7]. - Net assets increased significantly from HKD 12,082,054 thousand in 2021 to HKD 15,091,724 thousand in 2022, reflecting a growth of around 24.9%[7]. - The company’s total liabilities decreased significantly, with interest-bearing bank loans and other borrowings dropping from HKD 10,050,832 thousand in 2021 to HKD 6,117,897 thousand in 2022, a reduction of about 39.0%[7]. Revenue Sources - The revenue from the centralized photovoltaic power generation business was approximately HKD 2,362.2 million, accounting for about 44.6% of the total revenue for the year[44]. - The wind power business recorded operational revenue of approximately HKD 750.7 million, down from HKD 815.9 million in the previous year[56]. - Revenue from engineering, procurement, and construction services amounted to approximately HKD 403.1 million, a decrease of 49.3% from HKD 794.4 million in the previous year, accounting for 7.6% of total revenue[65]. Strategic Focus and Development - The company has shifted its focus to renewable energy, particularly in solar and wind power, aligning with China's "carbon peak and carbon neutrality" goals[37]. - The company aims to enhance its clean energy business by focusing on the development of grid-parity projects, with a total scale of over 700 MW for approved and in-construction projects[43]. - The company plans to continue investing in the development of photovoltaic and wind power projects to achieve a leading position in the domestic renewable energy market[43]. - The company is actively exploring new energy applications and international market expansion, aiming to become a leading comprehensive service provider in the new energy sector[69]. - The company aims to achieve carbon neutrality by 2060, aligning with national policies on green and low-carbon development[67]. Corporate Governance - The company emphasizes maintaining high standards of corporate governance to achieve sustainable development and enhance performance[109]. - The board of directors and management are committed to adhering to corporate governance principles, focusing on internal controls, risk management, and fair disclosure[109]. - The audit committee has reviewed the annual performance and confirmed the adoption of appropriate accounting policies[111]. Employee and Operational Metrics - The total employee count as of December 31, 2022, was 1,953, with total salary costs for the year amounting to approximately HKD 356.9 million, a decrease from HKD 367.0 million in 2021[101]. - The average utilization rate for the year was 95.98%, a decrease of 1.34% compared to the previous year[50]. - The actual clean heating area managed by the company and its joint ventures reached approximately 39,598 thousand square meters, a decrease of about 20.3% from 49,672 thousand square meters in the previous year[68]. Financial Management - The company raised approximately HKD 4,685 million through a subscription agreement completed on May 19, 2022, which significantly strengthened its capital base[33]. - The net debt-to-equity ratio decreased to approximately 64% as of December 31, 2022, down from 71% in 2021, primarily due to cash inflow from the subscription and reduced borrowings for clean energy development[96]. - The total borrowings as of December 31, 2022, were approximately HKD 30,077.8 million, a decrease of 3.6% from HKD 31,216.9 million in 2021[90].