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].

Financial Performance - The company reported a revenue of HKD 1.2 billion for the first half of 2022, representing a year-on-year increase of 15%[11]. - The group achieved a revenue of approximately HKD 2,938.4 million with a gross margin of 46.6% for the first half of 2022, while net profit decreased by about 18% to HKD 342.6 million compared to the previous year[15]. - The company reported a revenue of HKD 2,938,362, a decrease of 3% compared to HKD 3,019,152 in the previous year[22]. - Net profit for the period was HKD 342,551, an 18% decrease from HKD 418,450[22]. - The group achieved a total electricity sales and entrusted operation revenue of approximately HKD 2,143.3 million for the six months ended June 30, 2022, a decrease of about 2% compared to HKD 2,180.1 million for the same period in 2021[24]. - The company reported a total comprehensive income of HKD 678,586 thousand for the six months ended June 30, 2022[87]. - The company reported a total of HKD 1,118,999,000 in investments in joint ventures as of June 30, 2022, down from HKD 1,346,181,000 as of December 31, 2021, indicating a decrease of 16.9%[143]. Market Expansion and Strategy - The company provided a future outlook, projecting a revenue growth of 20% for the next fiscal year, driven by new product launches and market expansion[11]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by 2025[11]. - A strategic acquisition of a local competitor was announced, expected to enhance operational efficiency and increase market share by 5%[11]. - The company aims to enhance collaboration with Shandong High-speed Group to leverage resources for market expansion in clean energy[19]. - Future strategies include exploring hydrogen energy applications and developing integrated projects in marine renewable energy[19]. - The company is focused on expanding its photovoltaic and wind power businesses in mainland China, which are key areas of growth[92]. Research and Development - Investment in R&D increased by 30%, focusing on renewable energy technologies and innovative solutions[11]. - The company aims to actively respond to national policies and increase investment in technology research and development for clean heating solutions[50]. Operational Efficiency - The gross profit margin improved to 35%, up from 30% in the previous year, reflecting better cost management[11]. - The company aims to reduce operational costs by 15% through process optimization and technology integration[11]. - The governance structure has been optimized to enhance operational efficiency and protect shareholder interests, with a focus on market-oriented management[14]. Clean Energy and Sustainability - The group aims to become a leading comprehensive solution provider in the domestic renewable energy sector, focusing on wind and solar energy development and urban clean heating services[14]. - The clean heating service area reached approximately 45.34 million square meters, serving around 297,000 households across several provinces[16]. - The company holds and/or manages 14 operational projects utilizing various clean energy sources, with a focus on expanding its clean heating business[50]. Financial Position and Capital Management - Total assets amounted to HKD 54,621,512, a slight decrease of 0.5% from HKD 54,874,237[22]. - Total equity increased by 33% to HKD 16,016,938 from HKD 12,082,054[22]. - Cash and cash equivalents surged by 220% to HKD 3,645,553 from HKD 1,140,832[22]. - The company secured a USD 369 million syndicated loan with a participation of nine major commercial banks, achieving a subscription multiple of 1.84 times[17]. - The company recorded a net cash inflow from operating activities of HKD 1,427,669,000 for the six months ended June 30, 2022, compared to HKD 647,457,000 in the same period of 2021, representing a significant increase of approximately 120%[89]. - The company has maintained compliance with all applicable corporate governance codes as of June 30, 2022[182]. Shareholder Dynamics - Shandong Hi-Speed Group holds 48,804,039,247 shares, representing approximately 43.45% of the total issued shares[153]. - The ownership structure indicates significant control by a few major shareholders, with the top three shareholders holding over 79% of the total shares[157]. - The presence of institutional investors like CITIC Securities suggests a level of confidence in the company's future prospects[159]. Stock Options and Employee Incentives - The company aims to attract and retain talent through the stock option plan, providing additional incentives for selected participants[162]. - The stock option plan allows for a maximum of 10% of the total issued shares to be granted as options, updated to allow for up to 6,352,539,705 shares[165]. - The total remuneration paid to key management personnel for the six months ended June 30, 2022, was HKD 8,885,000, representing a significant increase of 103.6% compared to HKD 4,365,000 for the same period in 2021[145]. Corporate Governance - The company emphasizes high levels of corporate governance to enhance performance and shareholder value[182]. - The audit committee reviewed the unaudited interim results for the six months ended June 30, 2022[183].

Economic Performance - In 2021, China's GDP reached RMB 114,367 billion, growing by 8.1% year-on-year, with an average growth of 5.1% over two years[9]. - By the end of 2021, the total installed power generation capacity in China was approximately 2.38 billion kW, an increase of 7.9% year-on-year[9]. Renewable Energy Capacity - Wind power installed capacity reached approximately 330 million kW, growing by 16.6% year-on-year, with onshore wind capacity at 300 million kW and offshore wind capacity at 26.39 million kW[9]. - Photovoltaic power generation capacity reached approximately 310 million kW, increasing by 20.9% year-on-year, with centralized photovoltaic capacity at 200 million kW and distributed capacity at 110 million kW[9]. - Non-fossil energy power generation capacity reached approximately 1.12 billion kW, growing by 13.4% year-on-year, accounting for 47.0% of total installed capacity, surpassing coal power for the first time[9]. Power Generation Statistics - Total power generation from non-fossil energy sources was approximately 2.90 trillion kWh, a year-on-year increase of 12.0%, representing 34.6% of total power generation[9]. - The company achieved a total operating power generation of approximately 5.788 billion kWh in 2021, representing a year-on-year increase of about 19.5%[12]. - The company completed photovoltaic power generation of approximately 3.353 billion kWh in 2021, an increase of 6.8% year-on-year[13]. - The company’s wind power generation reached approximately 1.421 billion kWh in 2021, marking a significant year-on-year growth of about 118.6%[13]. Financial Performance - The company reported a revenue of approximately HKD 6,023.4 million for the year ended December 31, 2021, an increase of about 8% compared to the previous year[11]. - The company incurred a loss of approximately HKD 288.8 million in 2021, a decrease of about 133% compared to the previous year[11]. - The company’s gross profit for the same period was HKD 2,576,523, reflecting a decrease of 3% compared to HKD 2,662,864 in the previous year, resulting in a gross margin of 42.8%, down from 48.0%[19]. Clean Energy Initiatives - The company plans to expand its clean energy projects across various provinces, including significant developments in solar and wind energy[7]. - The company is focusing on enhancing its clean heating business, with multiple projects underway in different regions[7]. - The company aims to leverage technological advancements in renewable energy to improve efficiency and reduce costs[7]. - The company is actively exploring other clean energy sectors such as hydropower, energy storage, and hydrogen production to enhance its competitive edge[11]. Operational Developments - The company’s operational clean heating area reached approximately 49.67 million square meters, a year-on-year increase of about 70.4%[13]. - The company’s clean heating service households increased to approximately 310,478, reflecting a year-on-year growth of about 36.1%[13]. - The average utilization hours for the company’s operational wind power stations reached 2,902 hours, exceeding the national average of 2,246 hours[13]. Corporate Governance - The company emphasizes high levels of corporate governance to achieve sustainable development and enhance performance[115]. - The board of directors is responsible for leading, guiding, and monitoring the business to ensure long-term success and strategic decision-making[115]. - The company has adhered to all applicable provisions of the corporate governance code as outlined in the Listing Rules throughout the year ending December 31, 2021[115]. Leadership and Management - Zhang Tiefu was appointed as the executive director and co-chairman of the board in July 2021, bringing extensive experience in economic and market development[107]. - Yang Guang became the CEO and executive director in May 2021, previously serving as the development director and senior vice president at Beikong Water Group[108]. - The company has a strong leadership team with over 25 years of experience in management and investment across various sectors[107][110]. Risk Management - The company upgraded its risk management framework from a "three-tier + three lines of defense" model to a "three lines model" to enhance governance and risk management in response to changing business environments[136]. - The board is tasked with overseeing the effectiveness of the risk management and internal control systems, ensuring they are adequate to protect shareholder interests and group assets[136]. Related Party Transactions - The company’s independent non-executive directors have reviewed the related party transactions and confirmed they are conducted in the ordinary course of business and on normal commercial terms[194]. - The company has established ongoing related party transactions with its controlling shareholder, which are subject to annual review and disclosure requirements[194]. Shareholder Information - The company reported a financial position as of December 31, 2021, with a total available reserve for distribution to shareholders of approximately HKD 4,713.3 million[155]. - The board of directors did not recommend the payment of dividends for the year ended December 31, 2021[151]. Environmental Commitment - The company is committed to environmental sustainability and is expanding its photovoltaic and wind power businesses to contribute to renewable energy utilization[103]. - The company plans to publish its Environmental, Social, and Governance (ESG) report by the end of May 2022, detailing its commitments and performance in sustainable development[105].

[Company Information and Group Structure](index=3&type=section&id=公司資料與集團架構) [Company Information](index=3&type=section&id=公司資料) This section provides the company's basic information, including board members, committee composition, registered office, principal place of business, share registrar, auditor (EY), principal bankers, and company website, noting changes in directors, committee members, and company secretary during the reporting period - The company underwent several senior personnel changes during the reporting period, including the appointment of Mr. Zhang Tiefu and Mr. Hu Xiaoyong as Co-Chairmen, Mr. Yang Guang as CEO, and a change in company secretary[4](index=4&type=chunk) [Group Structure](index=4&type=section&id=集團架構) This section visually presents BEWG Clean Energy Group's equity structure and main business segments, showing BEWG Company Limited (stock code: 371) holds 31.88% of the company's shares, with core businesses in solar, wind, and clean heating - BEWG Company Limited is the company's major shareholder, holding **31.88%** of the shares[5](index=5&type=chunk) - The Group's business primarily consists of three segments: solar power generation, wind power generation, and clean heating, with projects across multiple provinces including Hebei, Henan, Shandong, and Jiangsu[6](index=6&type=chunk) [Chairman's Report](index=5&type=section&id=主席報告) [Macro Environment and Policies](index=5&type=section&id=宏觀環境與政策) The Chairman's Report reviews the macroeconomic situation in H1 2021, highlighting China's steady economic recovery and significant policy tailwinds for the renewable energy sector under the national "dual carbon" goals - National policies actively promote renewable energy development, with total renewable energy power consumption expected to reach **30.27%** and non-hydro renewable energy consumption **13.38%** in 2021[7](index=7&type=chunk) - The launch of green electricity certificate trading and the national carbon emission trading market has created new revenue opportunities for new energy power enterprises[7](index=7&type=chunk) - The nation proposes building a new power system dominated by new energy and significantly increasing wind and solar power generation, outlining an ambitious development blueprint for the industry[8](index=8&type=chunk) [Performance Review](index=6&type=section&id=業績表現) In H1 2021, the Group achieved steady performance growth with a 32% increase in operating revenue, 20% growth in gross profit, and 24% growth in profit for the period, despite a slight decline in gross margin Key Financial Indicators for H1 2021 | Indicator | H1 2021 | YoY Growth | | :--- | :--- | :--- | | Operating Revenue | Approx. 3,019.2 million HKD | Approx. 32% | | Gross Profit | N/A | Approx. 20% | | Gross Margin | 49.5% | Decreased from 54.8% | | Profit for the Period | Approx. 504.3 million HKD | Approx. 24% | | Profit Attributable to Equity Holders | Approx. 340.3 million HKD | Approx. 2% | [Business Review](index=7&type=section&id=業務回顧) During the reporting period, the Group's business segments progressed, with total operating power generation increasing by 23.4%, significant growth in wind power, and continued expansion in clean heating, alongside new ventures into hydropower and successful strategic financing Operational Data for Each Business Segment in H1 2021 | Business Segment | Indicator | Data | | :--- | :--- | :--- | | **Overall** | Total Operating Power Generation | Approx. 3.068 billion kWh (YoY growth of 23.4%) | | **Solar Power Generation** | Centralized Grid-connected Capacity | Approx. 2,154 MW | | | Distributed Total Installed Capacity | Approx. 700 MW | | | Consolidated Power Generation | Approx. 1.721 billion kWh (YoY growth of 5.2%) | | | Centralized Weighted Average Utilization Hours | 650 hours | | **Wind Power Generation** | Grid-connected Installed Capacity | Approx. 606 MW | | | Consolidated Power Generation | Approx. 0.910 billion kWh (YoY growth of 210.8%) | | | Weighted Average Utilization Hours | 1,623 hours (higher than national average of 1,212 hours) | | **Clean Heating** | Operating Clean Heating Area | Approx. 29.36 million square meters (YoY growth of 7.2%) | | | Heating Service Households | Approx. 228,449 households (YoY growth of 3.5%) | - The Group successfully bid for the contracted operation rights of Tanling Hydropower Plant in Lianzhou, Guangdong Province, officially entering the hydropower business and planning to build an integrated wind, solar, hydro, and storage multi-energy complementary clean energy industrial base[11](index=11&type=chunk) - In March 2021, the Group entered into capital increase agreements with multiple strategic investors, raising a total of **RMB 1.076 billion**, with cumulative strategic investment exceeding **RMB 2 billion**[11](index=11&type=chunk) [Corporate Governance and Future Outlook](index=9&type=section&id=公司管控及未來展望) The Group continuously improves its internal control system to enhance operational and investment decision-making efficiency, prioritizes safety management, and plans to build a "clean energy + smart energy" development system to become a regional integrated energy manager - The company is committed to enhancing internal management efficiency, including improving the cost quota database, streamlining procurement processes, and deploying financial BPs and HRBPs to support business development[12](index=12&type=chunk) - The future strategic core is "Clean Energy + Smart Energy," aiming to provide regional integrated energy management services and contribute to the nation's "carbon peak and carbon neutrality" goals[12](index=12&type=chunk)[13](index=13&type=chunk) [Management Discussion and Analysis](index=11&type=section&id=管理層討論與分析) [Business Review](index=11&type=section&id=1.%20業務回顧) This section details the Group's core operations in solar, wind, and clean heating, noting a 23.4% increase in total operating power generation and a 27% rise in electricity sales and entrusted operation revenue, with most projects now eligible for national subsidies Financial Summary for H1 2021 | Indicator (thousand HKD) | H1 2021 (Unaudited) | H1 2020 (Unaudited) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 3,019,152 | 2,285,001 | 32% | | Gross Profit | 1,495,842 | 1,251,086 | 20% | | Profit for the Period | 504,332 | 406,715 | 24% | | Profit Attributable to Equity Holders | 340,347 | 334,527 | 2% | - As of June 30, 2021, approximately **2,850 MW** of the Group's total installed solar and wind power plants (accounting for over **80%** of total grid-connected capacity) have been successfully included in the national renewable energy power generation subsidy list, expected to improve cash flow[19](index=19&type=chunk) [Electricity Sales and Entrusted Operation](index=12&type=section&id=1.1%20電力銷售及委託經營) Electricity sales and entrusted operation, a core revenue source, reached HKD 2.18 billion in H1 2021, up 27% year-on-year, driven by stable solar operations and rapid expansion in wind power, which saw over 260% revenue growth Solar Power Plant Operational Data (As of June 30, 2021) | Type | Total Grid-connected/Installed Capacity | H1 2021 Revenue (million HKD) | H1 2021 Power Generation (MWh) | | :--- | :--- | :--- | :--- | | Centralized | 2,241 MW | 1,299.8 | 1,451,214 | | Distributed | Approx. 700 MW | 309.9 | N/A | Wind Power Plant Operational Data (As of June 30, 2021) | Indicator | June 30, 2021 | June 30, 2020 | | :--- | :--- | :--- | | Total Grid-connected Capacity | 606 MW | 225 MW | | Total Power Generation (MWh) | 909,891 | 292,731 | | H1 2021 Revenue (million HKD) | 544.1 | 149.7 | | Weighted Average Utilization Hours | 1,623 hours | 1,541 hours | [Engineering, Procurement and Construction (EPC) and Technical Consulting Services](index=20&type=section&id=1.2%20工程、採購及建造服務以及技術諮詢服務) The Group leverages its expertise to provide EPC and technical consulting services for both its own and third-party projects, with EPC service revenue significantly increasing to approximately HKD 289 million in the reporting period - In H1 2021, operating revenue from EPC services was approximately **HKD 289 million**, a significant increase from **HKD 60.9 million** in the same period last year[40](index=40&type=chunk) [Clean Heating Services](index=21&type=section&id=1.3%20提供清潔供暖服務) Supported by national policies, the Group's clean heating business continued to grow, with actual heating area increasing by 7.2% to 29.36 million square meters and service households rising by 3.5% to approximately 228,449, generating approximately HKD 515 million in revenue Clean Heating Business Operational Data | Indicator | June 30, 2021 | YoY Growth | | :--- | :--- | :--- | | Actual Clean Heating Area | 29.36 million square meters | 7.2% | | Heating Service Households | 228,449 households | 3.5% | | Operating Revenue (H1 2021) | Approx. 515 million HKD | Approx. 11% | [Other Clean Energy Businesses](index=22&type=section&id=1.4%20其他清潔能源業務) The Group is actively exploring multi-energy complementary businesses like hydropower, energy storage, power distribution, and hydrogen production to become a leading integrated clean energy service provider, with hydropower now a new strategic segment expected to contribute stable revenue - The Group has added hydropower as a new strategic segment, aiming to establish an integrated wind, solar, hydro, storage, and transmission energy base to achieve greater economies of scale and operational efficiency[45](index=45&type=chunk) [Financial Performance](index=23&type=section&id=2.%20財務表現) In H1 2021, operating revenue grew 32% to HKD 3.02 billion, driven by electricity sales and construction services, while gross profit increased 20% despite a gross margin decline, and trade receivables significantly rose due to increased subsidy receivables Revenue and Gross Margin by Business Segment (H1 2021) | Business Segment | Operating Revenue (million HKD) | Gross Margin (%) | | :--- | :--- | :--- | | Electricity Sales - Solar | 1,609.7 | 64.3% | | Electricity Sales - Wind | 544.1 | 64.9% | | Construction Services | 301.1 | 19.8% | | Technical Consulting Services | 23.3 | 57.1% | | Entrusted Operation Services | 26.3 | 52.2% | | Clean Heating Services | 514.7 | 4.1% | | **Total** | **3,019.2** | **49.5%** | - Finance costs increased by **HKD 79.9 million** year-on-year to **HKD 758 million**, primarily due to an increase in the average balance of corporate bonds, bank loans, and other borrowings[51](index=51&type=chunk) - Trade receivables and bills receivable increased from **HKD 7.06 billion** to **HKD 9.22 billion**, mainly due to an increase in electricity tariff subsidies receivable included in the subsidy list, from **HKD 4.42 billion** to **HKD 6.74 billion**[57](index=57&type=chunk) - As of June 30, 2021, the Group's net debt-to-equity ratio was **68%**, a slight increase from **67%** at the end of 2020[68](index=68&type=chunk) [Major Asset Restructuring, Investments, Acquisitions and Disposals](index=30&type=section&id=重大資產重組、投資、收購及出售) During the reporting period, the Group undertook significant capital activities, including a proposed major asset restructuring involving its subsidiary BECE, a fourth round of capital increase for BECE raising RMB 1.076 billion, and securing a 20-year operating right for Tanling Hydropower Plant - The Group's indirect non-wholly owned subsidiary, BECE, intends to undergo a major asset restructuring with A-share listed company Zhongdian Electric[69](index=69&type=chunk) - BECE completed its fourth round of capital increase, introducing new capital totaling **RMB 1.076 billion** in exchange for approximately **9.14%** of its enlarged capital[69](index=69&type=chunk)[70](index=70&type=chunk) - The Group obtained a **20-year** operating right for Tanling Hydropower Plant in Lianzhou, Guangdong Province, marking its substantial expansion into the hydropower sector[71](index=71&type=chunk) [Other Financial Information](index=32&type=section&id=其他財務信息) This section covers the Group's asset pledges, contingent liabilities, foreign exchange risks, and employee numbers, noting that most bank loans are secured by various assets and the Board does not recommend an interim dividend - Most of the Group's borrowings are secured by assets including property, plant and equipment, concession rights, trade receivables, equity interests in subsidiaries, and bank balances[72](index=72&type=chunk) - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2021[72](index=72&type=chunk) [Condensed Consolidated Financial Statements](index=33&type=section&id=簡明綜合財務報表) [Condensed Consolidated Statement of Profit or Loss](index=33&type=section&id=簡明綜合損益表) For the six months ended June 30, 2021, the Group reported operating revenue of HKD 3.019 billion (up 32.1%), gross profit of HKD 1.496 billion (up 19.6%), and profit attributable to equity holders of HKD 340 million (up 1.7%), with basic earnings per share remaining at HKD 0.47 cents Condensed Consolidated Statement of Profit or Loss Summary (For the six months ended June 30) | Indicator (thousand HKD) | 2021 (Unaudited) | 2020 (Unaudited) | | :--- | :--- | :--- | | Operating Revenue | 3,019,152 | 2,285,001 | | Gross Profit | 1,495,842 | 1,251,086 | | Finance Costs | (757,827) | (677,936) | | Profit Before Tax | 604,232 | 470,246 | | Profit for the Period | 504,332 | 406,715 | | Profit Attributable to Equity Holders of the Company | 340,347 | 334,527 | | Basic Earnings Per Share | 0.47 HK cents | 0.47 HK cents | [Condensed Consolidated Statement of Financial Position](index=35&type=section&id=簡明綜合財務狀況表) As of June 30, 2021, the Group's total assets reached HKD 58.86 billion (up 3.0%), with total liabilities at HKD 45.21 billion and total equity at HKD 13.65 billion (up 4.0%), characterized by a significant portion of non-current assets and a notable increase in trade receivables Condensed Consolidated Statement of Financial Position Summary | Indicator (thousand HKD) | June 30, 2021 (Unaudited) | December 31, 2020 (Audited) | | :--- | :--- | :--- | | **Assets** | | | | Total Non-current Assets | 40,075,821 | 39,489,115 | | Total Current Assets | 18,784,946 | 17,638,132 | | **Total Assets** | **58,860,767** | **57,127,247** | | **Liabilities and Equity** | | | | Total Current Liabilities | 18,434,482 | 16,588,807 | | Total Non-current Liabilities | 26,776,175 | 27,413,550 | | **Total Liabilities** | **45,210,657** | **44,002,357** | | **Total Equity** | **13,650,110** | **13,124,890** | [Condensed Consolidated Statement of Cash Flows](index=38&type=section&id=簡明綜合現金流量表) In H1 2021, net cash from operating activities decreased to HKD 647 million, while net cash used in investing activities was HKD 1.579 billion, and net cash from financing activities was HKD 760 million, resulting in a net decrease of HKD 148 million in cash and cash equivalents Condensed Consolidated Statement of Cash Flows Summary (For the six months ended June 30) | Indicator (thousand HKD) | 2021 (Unaudited) | 2020 (Unaudited) | | :--- | :--- | :--- | | Net Cash Flows from Operating Activities | 647,457 | 1,113,707 | | Net Cash Flows Used in Investing Activities | (1,579,040) | (1,762,883) | | Net Cash Flows from/(Used in) Financing Activities | 760,193 | (187,173) | | Net Decrease in Cash and Cash Equivalents | (171,390) | (836,349) | | Cash and Cash Equivalents at End of Period | 2,374,039 | 2,801,922 | [Notes to the Condensed Consolidated Financial Statements](index=40&type=section&id=簡明綜合財務報表附註) [Operating Segment Information](index=42&type=section&id=2.%20經營分類資料) The Group's operations are categorized into construction-related businesses and operating clean energy projects, with the latter being the primary source of revenue (HKD 2.69 billion) and profit (HKD 778 million) during the reporting period Operating Segment Results (H1 2021, Unaudited) | Segment (thousand HKD) | External Operating Revenue | Segment Results | | :--- | :--- | :--- | | Construction-related Businesses | 324,375 | 63,394 | | Operating Clean Energy Projects | 2,694,777 | 778,128 | [Contract Assets and Trade Receivables](index=50&type=section&id=10.%20合約資產%20%26%2011.%20貿易應收款項及應收票據) Contract assets and trade receivables are significant balance sheet items, primarily reflecting electricity tariff payments and national subsidies, with approximately HKD 8.027 billion in electricity tariff subsidies receivable, highlighting their critical impact on the Group's cash flow - Electricity tariff subsidies receivable are a major component of contract assets and trade receivables, totaling approximately **HKD 8.027 billion** (HKD 1.284 billion + HKD 6.743 billion), and their collection progress is crucial for the Group's cash flow[109](index=109&type=chunk)[111](index=111&type=chunk) - The aging analysis of trade receivables (excluding subsidies) indicates a higher proportion of receivables over one year, amounting to approximately **HKD 980 million**, posing some collection risk[114](index=114&type=chunk) [Interest-Bearing Bank Borrowings, Other Borrowings and Corporate Bonds](index=55&type=section&id=15.%20計息銀行借款及其他借款%20%26%2016.%20公司債券) As of June 30, 2021, the Group's total interest-bearing bank and other borrowings amounted to HKD 30.862 billion, with corporate bonds totaling HKD 1.707 billion, resulting in combined total borrowings of approximately HKD 32.569 billion, predominantly long-term and secured Borrowing Structure (June 30, 2021) | Item (thousand HKD) | Current | Non-current | Total | | :--- | :--- | :--- | :--- | | Interest-bearing bank and other borrowings | 7,753,000 | 23,109,240 | 30,862,240 | | Corporate bonds | 1,706,539 | - | 1,706,539 | | **Total** | **9,459,539** | **23,109,240** | **32,568,779** | [Events After Reporting Period](index=60&type=section&id=23.%20報告期後事項) Subsequent to the reporting period, the company implemented board and committee personnel adjustments on July 29, 2021, with Mr. Zhang Tiefu and Mr. Hu Xiaoyong appointed as Co-Chairmen of the Board - On July 29, 2021, the company officially implemented a Co-Chairmen system, with Mr. Zhang Tiefu and Mr. Hu Xiaoyong jointly serving as Co-Chairmen of the Board[132](index=132&type=chunk) [Disclosures](index=61&type=section&id=披露資料) [Disclosure of Interests](index=61&type=section&id=權益披露) This section discloses the shareholdings of directors, chief executives, and substantial shareholders as of June 30, 2021, with BEWG Group holding 31.88%, CITIC Securities Co., Ltd. 23.91%, and Tus-Holdings Co., Ltd. 6.37% Major Shareholders' Shareholding (As of June 30, 2021) | Shareholder Name | Shareholding Percentage | | :--- | :--- | | Beijing Enterprises Holdings Limited (BE Group) | 31.88% | | CITIC Securities Co., Ltd. | 23.91% | | Tus-Holdings Co., Ltd. | 6.37% | [Share Option Scheme](index=66&type=section&id=購股權計劃) The company's share option scheme aims to incentivize and retain talent, with 1,020,000,000 unexercised share options outstanding as of June 30, 2021, representing approximately 1.61% of issued shares, and no new options granted or exercised during the period - As of June 30, 2021, unexercised share options granted under the share option scheme involved **1,020,000,000** shares, representing approximately **1.61%** of the issued shares[151](index=151&type=chunk)[159](index=159&type=chunk) [Specific Performance Obligations of Controlling Shareholders](index=72&type=section&id=控股股東之特定履約責任) Loan agreements stipulate that a breach of certain minimum shareholding or control levels by controlling shareholders (BEWG Group, Beijing Enterprises, and BE Group) would trigger default clauses, none of which have occurred as of the report approval date - Multiple loan agreements require controlling shareholders (BEWG Company Limited, Beijing Enterprises, and BE Group) to maintain specific minimum shareholding percentages and control status, otherwise potentially leading to immediate repayment demands for loans[165](index=165&type=chunk) [Corporate Governance](index=73&type=section&id=企業管治) [Corporate Governance](index=73&type=section&id=企業管治) The company emphasizes maintaining high corporate governance standards and compliance with legal and business norms, confirming adherence to all applicable code provisions of the Corporate Governance Code during the reporting period, with the audit committee having reviewed the interim results - The company states that it has complied with all applicable provisions of the Corporate Governance Code for the six months ended June 30, 2021[168](index=168&type=chunk) - The Audit Committee, comprising three independent non-executive directors, has reviewed this interim financial report[169](index=169&type=chunk)