Financial Performance - The company's revenue for the year was RMB 114,030,000, a decrease of approximately 41.6% compared to RMB 195,209,000 in the previous year[28]. - The net loss attributable to the company's owners was RMB 18,179,000, significantly reduced from RMB 306,368,000 in the previous year[28]. - The company recorded a significant reduction in losses due to improved performance from equity-accounted investees, with a net profit of RMB 30,520,000 recognized during the reporting period[28]. - The total comprehensive loss attributable to the owners of the company for the year was RMB 12,663,000, compared to a loss of RMB 305,550,000 in the previous year[99]. - In 2023, the company reported a net loss of RMB 20,401,000, a significant improvement compared to a net loss of RMB 306,148,000 in 2022, representing a reduction of approximately 93.35%[105]. - The company reported a loss attributable to shareholders of RMB 18,179,000 for the year, significantly improved from a loss of RMB 306,368,000 in the previous year[148]. - The company reported a financial income of RMB 3,304,000 in 2023, compared to RMB 7,373,000 in 2022, reflecting a decrease of approximately 55.19%[105]. - The basic and diluted loss per share for the year was RMB (0.0122), a significant improvement from RMB (0.2064) in the previous year[105]. - The company reported a total impairment loss of RMB 50,960,000 on property, plant, and equipment in 2023[117]. - The total cost of sales, selling and distribution expenses, administrative expenses, and impairment losses on non-financial assets amounted to RMB 169,126,000, down from RMB 179,368,000 year-on-year[146]. Asset and Liability Management - As of December 31, 2023, the total accounts receivable amounted to RMB 225,749,000, a decrease from RMB 229,832,000 at the end of 2022[37]. - The group’s total liabilities included bank loans of RMB 160,500,000 and lease liabilities of RMB 13,253,000 as of December 31, 2023[61]. - The group’s net cash position was reported as RMB (51,076,000) against total equity of RMB 851,413,000[61]. - The group’s external borrowings were subject to annual interest rates ranging from 5.04% to 5.28%, compared to 5.39% to 5.63% in the same period of 2022[62]. - The total assets decreased from RMB 1,179,798 thousand to RMB 1,136,591 thousand, a decline of approximately 3.6%[137]. - Total liabilities decreased from RMB 313,500 thousand to RMB 285,178 thousand, a reduction of about 9.0%[137]. - The company’s total equity decreased from RMB 866,298 thousand to RMB 851,413 thousand, a decrease of approximately 1.7%[137]. - Non-current liabilities totaled RMB 182,171 thousand, down from RMB 209,478 thousand, a decrease of about 13.0%[137]. - The group confirmed compliance with the standards of conduct for directors' securities transactions during the reporting period[67]. Revenue Sources and Business Segments - Total revenue for the year ended December 31, 2023, was RMB 114,030,000, with RMB 95,283,000 coming from the smart energy business and RMB 18,747,000 from public construction[117]. - The smart energy business generated revenue of approximately RMB 95,283,000, a decline of about 8.6% year-on-year, primarily due to a decrease in sales from household photovoltaic systems[196]. - Revenue from electricity sales was RMB 69,261 thousand, down from RMB 73,486 thousand, a decrease of approximately 5.5%[142]. - Revenue from household photovoltaic systems and smart energy services decreased from RMB 30,776 thousand to RMB 26,022 thousand, a decline of about 15.0%[142]. - The public infrastructure construction business generated revenue of approximately RMB 18,747,000, down from RMB 90,947,000 year-on-year, resulting in a loss of RMB 15,727,000 compared to a profit of RMB 818,000 last year[167]. Strategic Focus and Future Plans - The company plans to continue focusing on strategic investments and reassessments to enhance future performance[28]. - The group plans to leverage big data analytics from its cloud platform to enhance energy efficiency and provide integrated energy services to users[29]. - The company plans to maintain a cautious investment strategy in 2024, focusing on the stability of its main business amid macroeconomic challenges and industry competition[197]. - The company is expanding its clean energy business, focusing on integrated energy services for various customer segments[195]. - The company anticipates challenges in the photovoltaic sector due to increased competition and grid capacity issues affecting the consumption of photovoltaic power[197]. Operational Efficiency - The group reported a significant decrease in sales and distribution expenses, amounting to RMB 219,000, a decline of 89.8% compared to RMB 2,153,000 in the same period last year, primarily due to a reduction in residential photovoltaic system sales[93]. - The company’s employee benefits expenses decreased to RMB 12,158,000 from RMB 16,891,000 year-on-year[146]. - The depreciation and amortization expenses were RMB 35,083,000, slightly down from RMB 36,395,000 in the previous year[146]. - Administrative expenses for the reporting period were RMB 20,937,000, a decrease of 35.7% compared to RMB 32,582,000 in the same period last year, primarily due to reduced sales in the household photovoltaic system business[169]. - The company’s marketing and advertising expenses were reduced to zero from RMB 304,000 in the previous year[146]. Legal and Regulatory Matters - The group has initiated administrative review proceedings against the local government regarding the unilateral suspension of its distribution business rights, with further legal actions being considered[46]. - The group’s management discussed the potential impact of local government actions on future investments and operational strategies[46]. Compliance and Governance - The group is committed to maintaining high levels of corporate governance to protect shareholder interests and enhance corporate value[66]. - The group has adopted all new standards and amendments effective from January 1, 2023, which are expected to have no significant impact on the group during the reporting period or foreseeable future transactions[74][86]. - The group has implemented the revised International Accounting Standards, which aim to provide more detailed disclosures regarding significant accounting policies[71].

Revenue and Profitability - For the six months ended June 30, 2023, the Group's revenue was RMB73,287,000, a decrease of approximately 11.6% compared to RMB82,891,000 in the same period of 2022[14]. - Profit attributable to owners of the Company amounted to RMB343,000, a significant turnaround from a loss of RMB317,758,000 in the same period of 2022[14]. - The smart energy business contributed approximately RMB50,820,000 to the Group's revenue, slightly down from RMB51,015,000 in the same period of 2022[29]. - Total power generation revenue from existing solar power plants was RMB37,243,000, an increase from RMB34,129,000 in the same period of 2022[29]. - The smart energy business recorded a profit of RMB2,552,000 during the Period, compared to a loss of RMB317,315,000 in the same period of 2022[29]. - The public infrastructure construction business contributed RMB22,467,000 to revenue, down from RMB31,876,000 in the same period of 2022, with profit decreasing to RMB388,000 from RMB2,003,000[33]. - The Group's total revenue for the period was RMB73,287,000, representing an 11.6% decrease from RMB82,891,000 in the same period of 2022, while gross profit was RMB22,235,000, down 16.2% from RMB26,522,000[35]. - The gross profit margin decreased to 30% from 32% in the same period last year, primarily due to reduced gross profit from the smart energy business[35]. - Operating profit improved to RMB4,166,000, compared to an operating loss of RMB23,189,000 in the previous year[98]. - Profit before income tax was RMB814,000, a significant recovery from a loss of RMB289,270,000 in the prior year[98]. - Profit for the period was RMB746,000, compared to a loss of RMB317,481,000 in the same period last year[98]. Expenses and Financial Management - Selling and distribution expenses significantly decreased by 89.8% to RMB161,000 from RMB1,584,000 in the same period of 2022, mainly due to lower selling expenses in the household solar power generation systems business[35]. - Administrative expenses increased by 9.0% to RMB18,799,000 from RMB17,234,000 in the same period of 2022, primarily due to partial impairment provisions[35]. - The Group's net finance expenses amounted to RMB3,352,000, representing an increase of approximately 1376.7% compared to RMB227,000 in the same period of 2022, mainly due to a decrease in interest income[54]. - The income tax expense for the period was RMB68,000, a decrease of 99.8% from RMB28,211,000 in the same period of 2022, primarily due to the absence of derecognition of deferred income tax assets[54]. - The company reported a net finance expense of RMB3,352,000, compared to a net finance expense of RMB227,000 in the prior year[98]. Assets and Liabilities - As of June 30, 2023, the Group's bank balances and cash amounted to approximately RMB217,406,000, an increase from RMB213,198,000 as of December 31, 2022[39]. - Total current assets were approximately RMB647,241,000, with a current ratio of 5.79, down from 6.05 as of December 31, 2022, due to a higher increase in current liabilities compared to current assets[39]. - External borrowings as of June 30, 2023, were RMB173,400,000, down from RMB186,300,000 as of December 31, 2022, secured by machinery of solar power plants[39]. - Total liabilities decreased to RMB304,060,000 as of June 30, 2023, from RMB313,500,000 at the end of 2022[107]. - Non-current liabilities reduced to RMB192,287,000 from RMB209,478,000 at the end of 2022[107]. - Trade and other payables increased to RMB69,183,000 from RMB56,793,000 in the previous period[107]. - The Group's total financial liabilities as of June 30, 2023, were RMB293,355,000, with a carrying amount of RMB255,637,000[151]. Cash Flow and Liquidity - Cash generated from operating activities was RMB14,230,000, compared to a cash outflow of RMB16,986,000 in the same period last year[139]. - Net cash used in financing activities was RMB9,381,000, an improvement from RMB18,369,000 in the previous year[139]. - Cash and cash equivalents at the end of the period stood at RMB215,572,000, up from RMB181,567,000 a year earlier[139]. - The cash flows from investing activities generated a net cash inflow of RMB4,666,000, compared to RMB2,380,000 in the previous year[139]. - The Group's liquidity management involves monitoring cash requirements and compliance with loan covenants to ensure sufficient cash and credit facilities[151]. Business Operations and Strategy - The Group operates 11 ground and distributed solar power plants with an installed capacity of approximately 64 megawatts (MW) and household solar power plants of approximately 18 MW[29]. - The decrease in revenue was primarily due to reduced investment in the public infrastructure construction business during the Period[14]. - The Group is gradually expanding and diversifying into other clean energy businesses and investment businesses[27]. - The significant decrease in loss for the smart energy business was mainly due to the absence of prior year losses related to an associate and deferred income tax assets[29]. - The Group aims to improve energy utilization efficiency and reduce energy consumption costs through its smart energy cloud platform[29]. Shareholding and Governance - As of June 30, 2023, Mr. Wei Shaojun holds 970,534,633 shares, representing approximately 65.37% of the total shareholding[180]. - Lightway Power Holdings Limited and Harvest Oak Holdings Limited hold 534,462,121 shares (36.00%) and 436,072,512 shares (29.37%) respectively[182]. - There were no changes to the information required to be disclosed by the Directors during the reporting period[193]. - The Company was not aware of any other persons with interests or short positions in shares as of June 30, 2023, apart from those disclosed[188]. Risk Management - The Group's overall risk management program focuses on minimizing potential adverse effects on financial performance due to market risks, credit risks, and liquidity risks[5.1]. - The financial risk factors include foreign exchange risk, cash flow, and fair value interest rate risk[5.1]. - There were no changes in the risk management policies since December 31, 2022[151]. Compliance and Reporting - The review of interim financial information was conducted in accordance with International Standards, ensuring compliance and accuracy in reporting[95]. - The interim financial information is prepared in accordance with International Accounting Standard 34, ensuring compliance with reporting standards[166]. - The accounting policies adopted are consistent with those of the year ended December 31, 2022, ensuring continuity in financial reporting[166]. - The interim report is part of the ongoing financial disclosures required by the Stock Exchange[194].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損 失承擔任何責任。 XINDA INVESTMENT HOLDINGS LIMITED 鑫 達 投 資 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1281） 截至二零二三年六月三十日止六個月之中期業績公告 鑫達投資控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司及其附屬公 司（「本集團」）截至二零二三年六月三十日止六個月（「本期間」）之未經審核中期業績，連同 經挑選的附註解釋及二零二二年同期的比較數據如下： ...

Financial Performance - The company's revenue for the reporting period was RMB 195,209,000, a decrease of approximately 57.8% compared to RMB 462,642,000 in the same period last year[85]. - The loss attributable to the company's owners was RMB 306,368,000, significantly increasing from a loss of RMB 28,221,000 in the same period last year[85]. - The substantial loss was primarily due to a large impairment loss recognized by an associate in the real estate sector, resulting in a net loss of approximately RMB 265,854,000, compared to a net profit of RMB 2,457,000 in the previous year[85]. - The company recognized an impairment loss of approximately RMB 15,272,000 on certain financial assets during the reporting period, compared to a reversal of impairment loss of RMB 5,735,000 in the same period last year[85]. - The company reported a total comprehensive loss of RMB 30,248,000 for the year ended December 31, 2022, compared to a loss of RMB 28,431,000 in 2021, indicating a year-over-year increase in losses of approximately 6%[195]. - The company incurred a loss of RMB 306,368,000 for the year, which is a significant increase compared to the previous year's loss[195]. - Basic and diluted loss per share attributable to owners of the company was RMB 0.2064, compared to RMB 0.0190 in the previous year, indicating a worsening financial performance[185][186]. - Total comprehensive loss for the year amounted to RMB 305,330,000, compared to RMB 30,248,000 in the previous year, reflecting a substantial decline in overall financial health[187]. Expenses and Liabilities - Selling and distribution expenses decreased by 88.2% to RMB2,153,000 compared to RMB18,242,000 in the same period of 2021, primarily due to reduced sales of household solar power generation systems[1][5]. - Administrative expenses fell by 48.8% to RMB32,582,000 from RMB63,622,000 in the previous year, mainly due to lower management fees resulting from business downsizing[2][6]. - Net finance expenses decreased by 29.4% to RMB4,442,000 from RMB6,290,000 in the previous year, primarily due to a reduction in borrowings[9]. - Income tax expense decreased by 18.0% to RMB31,875,000 compared to RMB38,873,000 in the same period of 2021, mainly due to a decrease in derecognition of deferred income tax assets[9]. - Total liabilities decreased slightly to RMB 313,500,000 from RMB 328,027,000, showing a decrease of about 4.4%[191]. Assets and Equity - As of December 31, 2022, total current assets were approximately RMB629,170,000, down from RMB728,627,000 in the previous year, with a current ratio of 6.05 compared to 6.24[15]. - The company's total assets decreased to RMB 1,179,798,000 from RMB 1,499,618,000, indicating a reduction of approximately 21.4% year-over-year[189]. - Non-current assets totaled RMB 550,628,000, down from RMB 770,991,000, representing a decline of about 28.5%[189]. - Current assets decreased to RMB 629,170,000 from RMB 728,627,000, a reduction of approximately 13.6%[189]. - The company’s total equity as of December 31, 2022, was RMB 866,298,000, a decrease from RMB 1,171,591,000 at the end of 2021, indicating a decline of about 26%[195]. Cash Flow - Cash generated from operating activities decreased significantly to RMB 7,565,000 in 2022 from RMB 79,945,000 in 2021, reflecting a decline of about 90%[197]. - The net cash used in financing activities was RMB 34,187,000 in 2022, a decrease from RMB 41,189,000 in 2021, showing a reduction of approximately 17%[197]. - The company reported a decrease in cash flows from investing activities, with a net cash inflow of RMB 5,793,000 in 2022, down from RMB 25,800,000 in 2021, reflecting a decline of approximately 77%[197]. - The company’s cash and cash equivalents at the end of 2022 were RMB 205,381,000, down from RMB 222,320,000 at the end of 2021, representing a decrease of about 8%[197]. Business Operations - The Group's principal activities include smart energy business, public construction business, and related preliminary investment and post-construction operation management, with gradual expansion into other clean energy businesses[99]. - The smart energy business focuses on comprehensive energy services for users, aiming to enhance energy efficiency and reduce costs through a smart energy cloud platform[86]. - The company plans to enhance the operational management of existing photovoltaic power stations and explore other clean energy businesses in response to increasing market competition[163]. - The company experienced a significant decrease in sales revenue from household photovoltaic systems, contributing to the overall decline in revenue[164]. Risk Management - The Group's risk management framework is designed to effectively manage various risks faced by the Group, with procedures for identifying, assessing, responding to, and monitoring risks and their changes[108]. - The Group's risk management system is continuously monitored by the board and the audit committee, ensuring effective oversight of risk management processes[103][104]. - The Group aims to enhance its risk management capabilities through regular discussions and training across departments, fostering a culture of risk awareness among employees[108]. Corporate Governance - The financial statements have been prepared in accordance with International Financial Reporting Standards and comply with Hong Kong Companies Ordinance disclosure requirements[64]. - The audit opinion confirms that the consolidated financial statements have been properly prepared and comply with the disclosure requirements of the Hong Kong Companies Ordinance[102]. - The directors are responsible for preparing consolidated financial statements that provide a true and fair view in accordance with IFRSs[119]. - The audit committee assists the directors in overseeing the Group's financial reporting process[121]. Employee and Shareholder Relations - The Group offers competitive remuneration and benefits to attract and retain high-caliber employees, including discretionary bonuses and training programs[36]. - The Group maintains effective communication with shareholders through various channels, including annual general meetings and periodic announcements[39]. - The number of employees decreased from 80 to 62 as of December 31, 2022, due to downsizing in the household solar power generation systems business[36].

Financial Performance - For the six months ended June 30, 2022, the Group's revenue was RMB 82,891,000, a decrease of approximately 63% compared to RMB 225,480,000 in the same period of 2021[14]. - Loss attributable to owners of the Company amounted to RMB 317,758,000, significantly increasing from a loss of RMB 8,888,000 in the same period of 2021[14]. - The smart energy business contributed approximately RMB 51,015,000 to the Group's revenue, representing a decrease of approximately 69% compared to RMB 165,281,000 in the same period of 2021[20]. - The public infrastructure construction business contributed approximately RMB 31,876,000 to the Group's revenue, down from RMB 60,199,000 in the same period of 2021, reflecting a decrease of about 47%[25]. - The overall performance was negatively impacted by the lingering effects of the COVID-19 pandemic and the adjustment of the real estate industry in the PRC[14]. - Revenue for the six months ended June 30, 2022, was RMB 82,891,000, a decrease of 63.3% compared to RMB 225,480,000 in the same period of 2021[143]. - Gross profit for the same period was RMB 26,522,000, down 48.0% from RMB 51,073,000 in 2021[143]. - Operating loss increased to RMB 23,189,000, compared to an operating loss of RMB 10,461,000 in the previous year[143]. - Loss for the period was RMB 317,481,000, significantly higher than the loss of RMB 9,218,000 in 2021[146]. - Total comprehensive loss for the period amounted to RMB 326,266,000, compared to RMB 8,663,000 in 2021[148]. Financial Position - As of June 30, 2022, the Group's bank balances and cash amounted to approximately RMB 183,655,000, down from RMB 240,661,000 as of December 31, 2021, mainly due to investments in public infrastructure and solar power plants[43][46]. - Total current assets were approximately RMB 654,235,000 as of June 30, 2022, down from RMB 728,627,000 as of December 31, 2021, while the current ratio increased to 6.41 from 6.24[44][47]. - The Group's external borrowings were RMB 198,650,000 as of June 30, 2022, a decrease from RMB 211,000,000 as of December 31, 2021, secured by machinery of solar power plants and future receivables[45][48]. - Long-term debts accounted for 87.7% of total debts as of June 30, 2022, compared to 64.4% as of December 31, 2021, indicating a shift towards more long-term financing[56]. - Total assets as of June 30, 2022, amounted to RMB 1,140,874, a decrease of 24% from RMB 1,499,618 as of December 31, 2021[152]. - Total liabilities decreased to RMB 299,632 from RMB 328,027, representing a reduction of approximately 9%[152]. - Equity attributable to owners of the Company was RMB 839,775, down from RMB 1,166,499, indicating a decline of around 28%[152]. - Cash and cash equivalents were reported at RMB 181,567, a decrease of 18% from RMB 222,320[152]. Operational Changes - The Group scaled down the expansion of its household solar power generation systems business due to rising prices of photovoltaic modules, focusing instead on disposing of backlog inventory[19]. - The number of employees decreased from 80 as of December 31, 2021, to 67 as of June 30, 2022, due to scaling down the household solar power generation systems business[73]. - The Group plans to adopt strict cost control measures and monitor risks to maintain sustainable development amid economic uncertainties[28]. - The Group plans to continue focusing on its smart energy and public infrastructure construction segments for future growth[188]. Impairment and Losses - The Group recognized a net loss of approximately RMB 265,854,000 for the associate accounted for using the equity method during the Period[20]. - The significant increase in losses was primarily due to the changes in the operating environment and the impairment loss recognized by an associate[14]. - Provisions for impairment loss on trade receivables amounted to approximately RMB 23,737,000, significantly up from RMB 594,000 in the same period of 2021[36]. - The impairment loss on accounts receivable was approximately RMB 23,737,000, compared to RMB 594,000 in the same period of 2021, reflecting management's assessment of overdue receivables[40]. - The total financial asset impairment losses for the first half of 2022 were RMB 23,505,000, a decrease from RMB 27,000 in the previous year, reflecting better asset quality[199]. Governance and Compliance - The Group complied with all applicable code provisions of the Corporate Governance Code during the period, except for the combined roles of the chairman and CEO[80]. - The Audit Committee reviewed the unaudited interim consolidated financial information and confirmed compliance with applicable accounting standards and legal requirements[87]. - The company has complied with the standards of conduct for directors in securities trading as per the listing rules[92]. - The interim condensed consolidated financial statements were reviewed in accordance with International Accounting Standard 34, covering the six-month period ended June 30, 2022[133]. Financial Risks - The Group's activities expose it to various financial risks, including market risk, credit risk, concentration risk, and liquidity risk, with a focus on minimizing potential adverse effects on financial performance[169]. - Local management in the Group's operating entities is responsible for cash management, including short-term investments and raising loans to meet expected cash demands[178]. - The Group regularly monitors its liquidity requirements and compliance with loan covenants to maintain sufficient cash and adequate credit facilities for short and long-term obligations[178].

Financial Performance - The Group achieved a revenue of RMB 462,642,000 for the Reporting Period, representing a growth of approximately 16.70% compared to the same period last year[17]. - The Group recorded a loss attributable to owners of the Company of RMB 28,221,000 for the Reporting Period, compared to a profit of RMB 1,064,000 for the same period last year[17]. - The Group recorded a revenue of RMB 462,642,000 for the reporting period, representing an increase of approximately 16.7% compared to RMB 396,413,000 in the same period of 2020[31]. - Loss attributable to owners of the Company was RMB 28,221,000, a turnaround from a profit of RMB 1,064,000 in the same period of 2020, primarily due to lower gross profit margins and derecognition of deferred income tax assets of approximately RMB 37,000,000[31]. - Gross profit for the period was RMB 87,654,000, with a gross profit margin of 18.9%, down from 22.0% in the same period of 2020[53]. - Selling and distribution expenses increased by 63.6% to RMB 18,242,000, primarily due to the expansion of the household solar power generation systems business[53]. - Administrative expenses rose by 56.4% to RMB 63,622,000, mainly due to the absence of share option fee reversals and increased impairment provisions for fixed assets[53]. - The public infrastructure construction business contributed approximately RMB 145,744,000 to revenue, slightly down from RMB 148,149,000 in the same period of 2020, with a profit of RMB 2,684,000 compared to a loss of RMB 3,582,000 last year[43][44]. Solar Power Industry - The newly installed solar power generation capacity in China reached 54.88 GW in 2021, marking a year-on-year increase of 13.9%[16]. - The household solar power generation system contributed 21.6 GW, accounting for 39.4% of China's newly installed capacity[16]. - Over 50% of the newly installed capacity was from distributed solar power generation, with a contribution of 29.28 GW or 53.4%[16]. - The rising price of silicon led to a 22.9% year-on-year increase in photovoltaic component prices and a 4% increase in solar power plant system costs[16]. - The profitability in the solar power plant industry was increasingly suppressed, affecting companies' willingness to invest[16]. - The outlook for the solar power industry remains promising despite challenges, with a focus on reducing carbon emissions and developing clean energy sources[46][48]. - The household solar power generation business is entering a fully market-driven phase as subsidies for new projects will be canceled starting in 2022[46][48]. - Rising prices of polycrystalline silicon are expected to suppress profit margins and affect the newly installed capacity of solar power plants in 2022[47][49]. Business Strategy and Operations - The Group focused on developing its principal business while ensuring the well-being of its staff during the challenging environment[17]. - The Group aims to integrate energy systems with internet technology to enhance operational efficiency and investment returns[36]. - The Group will continue to focus on risk management, cost control, and sustainable development in the new fiscal year[24]. - The company plans to adopt a robust development strategy while managing costs and risks to deliver attractive returns to shareholders[51][52]. - The Group is gradually expanding its operations and diversifying into other clean energy businesses, indicating a strategic growth direction[103]. - The Group's main business focuses on smart energy and public infrastructure construction, with an emphasis on solar power plant operations and household solar power generation systems[139]. Financial Position and Investments - As of December 31, 2021, the cash position was approximately RMB240,661,000, an increase from RMB155,585,000 as of December 31, 2020, primarily due to the recovery of investments in financial assets[63]. - Total current assets as of December 31, 2021, were approximately RMB728,627,000, down from RMB743,960,000 in the previous year, with a current ratio of 6.24 compared to 6.27[63]. - External borrowings decreased to RMB211,000,000 as of December 31, 2021, from RMB235,400,000 in 2020, with borrowings secured by machinery at solar power plants[65]. - The Group's net debt was negative as of December 31, 2021, primarily due to loan repayments and recovery of financial assets, resulting in a gearing ratio of N/A compared to 7.1% in 2020[65]. - The proportion of long-term and short-term debts was 64.4% and 35.6%, respectively, a significant change from 89.6% and 10.4% in the previous year[66]. - The Group held two financial assets for investment purposes, including 6,935.6307631 class A shares in an unlisted investment fund, with redemption proceeds of approximately HK$57,430,000[56]. - The Group's investment strategy focuses on lower-risk investments, primarily in funds managed by qualified investment managers or low-risk bonds[59]. - The Group aims to avoid speculative securities, focusing instead on investments with lower risks and stable income streams[59]. Employee and Governance - The Group employed 80 employees as of December 31, 2021, a decrease from 269 employees on December 31, 2020, due to the downsizing of the household solar power generation systems business in the second half of the year[82][83]. - The Group maintains a competitive remuneration package to attract and motivate employees, regularly reviewing and adjusting it to align with market standards[167]. - The remuneration committee reviews the Group's emolument policy and structure based on operating results, individual performance, and market practices[185]. - The Group's independent non-executive Directors are confirmed to be independent, ensuring compliance with governance standards[180]. - The Company has received written confirmations of independence from all independent non-executive Directors, who are considered independent according to the Listing Rules[175]. Related Party Transactions - Sales to the Group's five largest customers accounted for approximately 43% of total sales for the Reporting Period, with the largest customer accounting for 32%[161]. - Purchases from the Group's five largest suppliers accounted for approximately 63% of total purchases for the Reporting Period, with the largest supplier accounting for 26%[161]. - The continuing connected transactions were confirmed to be in the ordinary course of business and on normal commercial terms[158]. - The auditor issued an unqualified letter regarding the Group's continuing connected transactions[159]. - The applicable percentage ratios for the transactions under the 2020 and 2021 renewal agreements exceeded 0.1% but were less than 5%[156].

Financial Performance - For the six months ended June 30, 2021, the Group's revenue was RMB 225,480,000, representing an increase of approximately 312% compared to RMB 54,692,000 in the same period of 2020[16]. - Loss attributable to owners of the Company amounted to RMB 8,888,000, a decrease of approximately 71% from a loss of RMB 31,046,000 in the same period of 2020[16]. - Gross profit for the Period was RMB 51,073,000, reflecting a 129% increase year-over-year, although the gross profit margin declined to 23% from 41% due to rising costs of photovoltaic raw materials[31]. - The operating loss for the six months ended June 30, 2021, was RMB 10,461,000, an increase from an operating loss of RMB 7,709,000 in 2020[147]. - Basic and diluted loss per share for the period was RMB 0.0060, compared to RMB 0.0209 in the same period of 2020[150]. - Total comprehensive loss for the period was RMB 8,663,000, down from RMB 29,285,000 in 2020, reflecting a decrease of 70%[154]. Business Segments - The public infrastructure construction business recorded a profit attributable to owners of the Company of approximately RMB 2,240,000 for the Period, compared to a loss of RMB 8,712,000 in the same period of 2020[16]. - The smart energy business generated approximately RMB 165,281,000 in revenue, representing a 320% increase compared to the same period last year, primarily due to growth in home photovoltaic system sales[24]. - The public infrastructure construction business contributed approximately RMB 60,199,000 to the Group's revenue, up from RMB 15,360,000 in the same period of 2020[24]. Financial Assets and Liabilities - The Group held financial assets at fair value amounting to HK$66,779,000 (equivalent to RMB55,566,000) as of June 30, 2021, with a fair value gain of approximately HK$12,006,000 during the Period[36]. - The Group's total current assets as of June 30, 2021, were approximately RMB831,920,000, an increase from RMB743,960,000 as of December 31, 2020[43]. - Total liabilities increased to RMB 402,268,000 from RMB 352,464,000, representing a rise of around 14.1%[177]. - Non-current liabilities totaled RMB 223,991,000, down from RMB 233,876,000, a decrease of about 4.2%[177]. Operational Challenges - The Group anticipates continued challenges in the second half of 2021 due to the complex external environment and rising costs of photovoltaic raw materials[28]. - The average price of photovoltaic components increased by approximately 20% in the first half of 2021, impacting profitability in the home photovoltaic systems business[27]. Shareholder Information - As of June 30, 2021, Mr. Wei Shaojun holds a total of 970,534,633 shares, representing approximately 65.37% of the company's shareholding[73]. - The total number of shares held by substantial shareholders reflects significant ownership concentration within the Company[94]. - The Company did not recommend the payment of any interim dividend for the period, consistent with the previous year where no dividend was paid[68]. Strategic Focus - The Group's strategy includes expanding its offline business in comprehensive energy supply such as electricity, heat, and gas[21]. - The Group aims to build a diversified, clean, and low-carbon energy supply system through its smart energy cloud platform[21]. - The Group's financial strategy includes maintaining investment flexibility through financial assets held for investment purposes[36]. Employee and Corporate Governance - The Group employed 268 employees as of June 30, 2021, a slight decrease from 269 employees as of December 31, 2020[58]. - The company’s financial data has been reviewed by the audit committee and is compliant with applicable accounting standards and regulations[66].

隆基泰和智慧能源 LONGITECH SMART ENERGY LongiTech Smart Energy Holding Limited 隆基泰和智慧能源控股有限公司 (incorporated in the Cayman Islands with limited liability 於開曼群島註冊成立的有限公司) Stock Code 股份代號：1281 耳 an and an UTS THE THE TIAN TOLL THE x 日 ▶ ANNUAL REPORT 2020 年報 77.50 CONTENTS目錄 Corporate Information 02 公司資料 Chairman's Statement 04 主席報告 Management Discussion and Analysis 08 管理層討論與分析 Report of Directors 21 董事會報告 Directors and Senior Management 46 董事及高級管理層 Corporate Governance Report 50 企業管治報告 Independent Auditor's Report 7 ...

Financial Performance - For the six months ended June 30, 2020, the Group's revenue was RMB 54,692,000, representing a decrease of 15% compared to RMB 64,509,000 for the same period in 2019[18]. - The loss attributable to owners of the Company was RMB 31,046,000, a turnaround from a profit of RMB 18,435,000 in the same period of 2019[18]. - The decrease in revenue and the shift from profit to loss were primarily due to the termination of high gross margin distributed heating projects and a low gross profit margin from public infrastructure construction[18]. - The smart energy business generated revenue of approximately RMB39,332,000, representing a decrease of approximately 39% compared to RMB64,509,000 in the same period of 2019[26]. - Gross profit for the period was RMB22,341,000, representing a decrease of 42% compared to RMB38,457,000 in the same period of 2019[35]. - Operating loss for the period was RMB 7,709,000, a significant drop from an operating profit of RMB 200,000 in the previous year[175]. - Basic and diluted loss per share for the period was RMB (0.0209), compared to earnings per share of RMB 0.0124 in the prior year[179]. - Total comprehensive loss for the period was RMB 29,285,000, contrasting with a total comprehensive income of RMB 21,885,000 in 2019[182]. Assets and Liabilities - Total assets as of June 30, 2020, amounted to RMB 1,524,234,000, down from RMB 1,851,854,000 at the end of 2019, indicating a decrease of approximately 18%[189]. - Current assets decreased to RMB 684,253,000 from RMB 925,343,000, reflecting a decline of about 26%[189]. - Total liabilities decreased from 626,761 to 327,793, representing a reduction of about 47.8%[197]. - Current liabilities significantly decreased from 365,175 to 78,172, a drop of approximately 78.6%[197]. - Total non-current liabilities decreased from 261,586 to 249,621, a decline of about 4.56%[197]. - Borrowings decreased from 299,000 to 24,200, a substantial reduction of approximately 91.9%[197]. Cash Flow and Financing - As of June 30, 2020, the Group's cash position was approximately RMB176,087,000, an increase from RMB98,616,000 as of December 31, 2019, primarily due to government rebates for the Baoding Donghu Project[55]. - The Group's external borrowings decreased to RMB247,400,000 as of June 30, 2020, from RMB534,400,000 as of December 31, 2019, with the borrowings for the Baoding Donghu Project fully repaid during the period[60]. - The gearing ratio as of June 30, 2020, was 6.8%, a decrease of 20.1 percentage points from 26.9% as of December 31, 2019, primarily due to increased cash and reduced debt[59]. Investment and Strategy - The Group seeks to acquire premium energy assets and projects to generate stable operation and investment revenue[21]. - The Group's strategy includes multi-energy complementation and energy finance, aiming to build a diversified, clean, and low-carbon energy supply system[21]. - The Group's investment strategy focuses on low-risk financial assets, aiming to diversify its portfolio and mitigate market risks[50]. Corporate Governance - The Company has complied with the corporate governance code as per the Listing Rules, with noted deviations regarding the roles of the Chairman and CEO[85]. - The Company maintains a high level of corporate governance to protect shareholder interests and enhance corporate value[85]. - The Audit Committee reviewed the unaudited interim consolidated financial information and confirmed compliance with applicable accounting standards and legal requirements[87]. Shareholder Information - As of June 30, 2020, Mr. Wei Shaojun holds 422,872,512 Shares, representing approximately 28.48% of the total shareholding[96]. - The total shareholding of Mr. Wei Shaojun and associated interests amounts to 901,399,268 Shares, or 60.71% of the total[97]. - The Company did not purchase, sell, or redeem any of its listed securities during the Period[89]. Employee and Operational Changes - The Group had 87 employees as of June 30, 2020, down from 98 employees as of June 30, 2019, due to staff optimization[73]. - The Group did not engage in any material acquisition or investment during the Period[72]. - The Group did not have any material disposal during the Period[73].

Financial Performance - In 2019, LongiTech Smart Energy achieved revenue of RMB 147,460,000, a decrease of 79.2% compared to RMB 708,493,000 in 2018[22] - The loss attributable to owners of the Company was RMB 264,522,000, compared to a profit of RMB 107,720,000 in the same period of 2018[22] - The Group's revenue for the reporting period was RMB 147,460,000, a decrease of 79.2% compared to RMB 708,493,000 in the same period of 2018[32] - The loss attributable to owners of the Company was RMB 264,522,000, representing a decline of approximately 345.6% compared to a profit of RMB 107,720,000 in the same period of 2018[32] - The Group's total revenue for the Reporting Period was RMB 147,460,000, a significant decrease from RMB 708,493,000 in the same period of 2018[62] - The gross profit margin increased to 53.4%, up from 34.4% in the same period of 2018[62] - The smart energy business generated approximately RMB116,806,000 in revenue, a decrease of about 77.9% compared to the same period last year[49] - The public infrastructure construction business generated revenue of approximately RMB30,654,000, down from RMB179,235,000 in the same period last year[49] Economic Environment - The overall economic environment in 2019 was challenging, with significant downward pressure on China's economic growth[19] - The solar power industry faced lower profit margins due to reduced subsidies and delayed project construction policies[20] - The tightening capital chain in the solar power industry led to a wave of disposals of solar power plants by large generators[20] Strategic Adjustments - The Group adopted prudent operation strategies, focusing on risk control and reducing the development scale of the home photovoltaic system business[22] - The Group's strategies included slowing down investment in other clean energy businesses during the Reporting Period[22] - The Group's strategy has shifted to slowing down business expansion and focusing on risk control amid a challenging economic environment[32] - The Group plans to optimize its organizational structure and implement cost control measures while ensuring business development[25] - The Group's strategic adjustment involved a contraction in business expansion and a focus on risk control and stable development in response to economic and industry changes[34] Provisions and Impairments - The Group made larger provisions for historical receivables and financial assets, significantly impacting income and profit for the Reporting Period[22] - The Group made a provision of approximately RMB 156,887,000 for trade receivables from the home photovoltaic system business during the reporting period, significantly impacting the loss before income tax[32] - The Group made a provision of approximately RMB 94,889,000 for financial assets at amortized cost, resulting in a direct increase in the Group's loss before income tax during the reporting period[39] - The Group made impairment provisions of RMB 156,887,000 for trade receivables related to the home photovoltaic system business, a significant increase from RMB 14,861,000 in the same period of 2018[68] Operational Developments - The Group's existing 11 solar power plants are under stable operations, with the Baoding Donghu Project having a development volume of over RMB 2 billion, expected to lay a solid foundation for future development[25] - The Group's solar power plants achieved a historic high in power generation during the Reporting Period, totaling approximately 80,724 MWh, an increase of 7.2% compared to 75,044 MWh in the same period of 2018[44] - All solar power plants are connected to a Cloud Platform for real-time monitoring and optimization of power generation and operation[45] Investment and Financing - The Group's total capital, defined as net debt plus total equity, was RMB 1,676,020,000 as of December 31, 2019, down from RMB 1,883,413,000 in the previous year[89] - The Group's external borrowings as of December 31, 2019, were RMB 534,400,000, a decrease from RMB 567,600,000 as of December 31, 2018[89] - The Group's cash position included approximately RMB 66,388,000 in restricted bank balances as of December 31, 2019, primarily for the Baoding Donghu Project expenses[85] - The Group expects that interest rate risk will have no material impact on its consolidated profit or loss[98] Environmental and Regulatory Compliance - The Group is committed to environmental protection and compliance with relevant laws and regulations impacting its operations during the reporting period[132] - The Group complied with all relevant environmental laws and regulations during the Reporting Period, with no incidents of non-compliance that had a significant impact[138] - The Company emphasizes compliance with environmental laws and regulations during the development of its smart energy and solar energy businesses[157] Shareholder and Governance Matters - The Board does not recommend the payment of a final dividend for the year ended December 31, 2019, consistent with the previous year[143] - The Company has adopted a dividend policy where cash dividends may be paid out when the distributable profit is positive, with a proportion of cash dividends being not less than 20%-50% of the year's distributable profit attributable to shareholders[146] - The Company aims to maintain financial stability and autonomy while ensuring sustained, stable, and healthy development[146] Connected Transactions - The Group's sales to Longchuang Heating, a connected person, amounted to 10% of total sales for the Reporting Period[183] - The transactions under the First Master Agreement constitute continuing connected transactions as per Chapter 14A of the Listing Rules[169] - The independent non-executive Directors confirmed that the continuing connected transactions were entered into in the ordinary course of business and on normal commercial terms[180]