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]

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 | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------------------------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | . | INTERIM REPORT 中期報告 | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | |----------|------------------------------------------------------------------ ...

Financial Performance - In 2018, the Group's revenue was approximately RMB 708,493,000, a decrease of approximately 21.1% compared to RMB 897,902,000 in 2017[19]. - Profit attributable to owners of the Company was RMB 107,720,000, representing a decrease of approximately 20.3% from RMB 135,197,000 in the previous year[19]. - The smart energy business generated revenue of RMB 529,258,000, contributing to 74.7% of the Group's total revenue[30]. - The profit from the smart energy business was RMB 130,063,000, accounting for 120.7% of the Group's total profit attributable to owners[30]. - Gross profit for the reporting period was RMB 243,831,000, down from RMB 260,480,000 in the same period of 2017, reflecting a decline of 6.4%[58]. - Revenue from the public infrastructure construction business was approximately RMB 179,235,000, down 25.9% from RMB 241,954,000 in the same period of 2017[58]. - Revenue from the smart energy business was RMB 529,258,000, a decrease of 19.3% from RMB 655,948,000 in the same period of 2017[58]. Business Challenges and Strategies - The decline in revenue and profit was mainly due to the impact of the "531 Policy" on the home photovoltaic system business and increased operating costs from investments and acquisitions[19]. - The Group adjusted its business strategies and investment structure in response to external challenges, focusing on mergers and acquisitions in distributed energy and energy conservation technologies[19]. - The external environment in 2018 was complicated, with economic slowdown and increased operational pressure on enterprises, particularly private ones[18]. - The overall market environment experienced significant fluctuations due to domestic supply-side reforms and de-leveraging policies[18]. - The Group's proactive adjustments included providing energy-saving and technology consulting services to maintain business stability[19]. Investments and Acquisitions - The Group engaged in investments and acquisitions related to heat, gas, and particularly distributed natural gas heating supply business[19]. - The Group plans to actively expand its distributed energy, particularly in distributed natural gas heating, in response to industry development opportunities[26]. - The Group aims to develop home photovoltaic systems in alignment with national subsidy policies for the solar power industry[26]. - The Group invested in distributed natural gas heating projects covering an area of approximately 600,000 square meters, with an expected investment cost recovery period of 4 to 6 years[40]. - The Group's investment strategy focuses on stable public institutions and quality commercial and residential customers in the "2+26" cities[42]. Financial Position and Assets - As of December 31, 2018, the bank balances and cash amounted to approximately RMB 164,136,000, an increase from RMB 108,701,000 as of December 31, 2017, primarily due to proceeds from a rights issue and collections from the smart energy business[80]. - Total current assets were approximately RMB 1,370,646,000 as of December 31, 2018, down from RMB 1,404,387,000 in 2017, while the liquidity ratio increased to 9.75 from 2.73 due to a net decrease of RMB 253,040,000 in current bank borrowings[81]. - External borrowings decreased to RMB 567,600,000 as of December 31, 2018, from RMB 933,545,000 in 2017, with RMB 282,600,000 secured by solar power plant machineries[82]. - The gearing ratio improved to 21.4% as of December 31, 2018, down 30.2 percentage points from 51.6% in 2017, primarily due to the repayment of bank borrowings[86]. - Long-term debts accounted for 94.2% of the Group's total debts as of December 31, 2018, with specific borrowings being gradually settled through electricity sales and government project funding[88]. Operational Efficiency and Cost Management - Selling and distribution expenses decreased by 9.7% to RMB 22,146,000 from RMB 24,519,000 in the same period of 2017[59]. - Administrative expenses increased by 30.9% to RMB 89,234,000 from RMB 68,190,000 in the same period of 2017, primarily due to increased investments and mergers and acquisitions[60]. - Net financial expenses decreased by 51.6% to RMB 9,308,000 from RMB 19,235,000 in the same period of 2017, attributed to repayment of bank loans[61]. - Income tax expenses decreased by 53.5% to RMB 10,386,000 from RMB 22,328,000 in the same period of 2017, due to a decrease in profit before income tax from the smart energy business[62]. Future Outlook and Development - The Group plans to adopt more flexible operation strategies and optimize its industrial structure in response to the complex economic situation in 2019[54]. - The Group will focus on diversified investments in distributed energy business, particularly in areas like distributed heating and gas, through investments, mergers, and acquisitions[55]. - The Group aims to leverage its capabilities in monitoring and big data analysis to achieve unattended and automated control of energy projects, saving manpower costs[47]. Stakeholder Engagement and Compliance - The company is committed to environmental protection and has complied with relevant environmental laws and regulations during the reporting period[176]. - The company recognizes the importance of maintaining relationships with stakeholders, including employees, customers, suppliers, and local communities[180]. - There were no incidents of non-compliance with relevant laws and regulations that had or would have a significant impact on the Company during the Reporting Period[182].