Research and Development - The Group reported a significant focus on R&D, integration, manufacturing, and sales of high-voltage pitch control systems for wind turbines, with a product range covering sophisticated models for 2–9 MW series[7] - The Group plans to cautiously invest resources in the research and development of energy storage products and systems, aiming to establish a comprehensive energy storage supply chain[56] Energy Storage Business - The energy storage business is a core area, leveraging advanced technologies such as IoT and AI, with a modern factory in Wuxi covering 13,000 square meters for stable battery assembly[10] - The Company has signed cooperation agreements with CCCC Industrial Investment Holding Limited and others for comprehensive energy storage business development[10] - The company plans to enhance its energy storage business and establish a stable supply chain, aiming to develop it as a new profit growth point[32] - In 2024, the company recognized two order projects in energy storage integration, indicating progress in this core business area[51] - The revenue from the energy storage business in 2024 amounted to approximately RMB 68.7 million, representing an increase of approximately RMB 40 million or approximately 136% from 2023, attributed to customer recognition of the energy storage system[66] - The gross profit margin of the energy storage business in 2024 was approximately –12%, a decrease of 38% from approximately 26% in 2023, primarily due to high labor and raw material costs[79] - The cost of sales for the energy storage business in 2024 was approximately RMB 77.1 million, an increase of RMB 55.1 million from approximately RMB 22 million in 2023, driven by increased material and labor costs[75] Financial Performance - In 2024, the company's revenue decreased to RMB 148,280,000, a decline of 48% compared to RMB 284,075,000 in 2023[22] - The gross loss was RMB 8,968,000, compared to a gross profit of RMB 26,945,000 in 2023, representing a 133% decline[22] - Loss attributable to shareholders increased to RMB 34,733,000, a 242% increase from RMB 10,144,000 in 2023[22] - The Group's total revenue for 2024 was approximately RMB 148.3 million, a decrease of approximately RMB 135.8 million or 47.8% from 2023, primarily due to a reduction in the number of slurry transformers delivered and a decline in operation and maintenance business[59] - The revenue from pitch control systems in 2024 was approximately RMB 53.7 million, a decrease of approximately RMB 163.9 million or approximately 75% from 2023, due to a reduction in orders[61] - The revenue from wind farm operation and maintenance business in 2024 was approximately RMB 10 million, representing a decrease of approximately RMB 10 million or approximately 48% from 2023[65] - The Group recorded a net loss of approximately RMB39.4 million in 2024, an increase of approximately RMB26.9 million from the net loss of approximately RMB12.5 million in 2023, primarily due to increased market competition affecting gross profit in the pitch control systems and energy storage business[90] Market Position and Partnerships - The Company has established stable partnerships with major wind power manufacturers, including Envision Energy and CRRC Group, enhancing its market position[7] - The focus on integrated energy projects, including wind power storage and smart micro-grids, showcases the Group's commitment to innovative solutions[10] - The establishment of new subsidiaries, such as Jiangsu Nature Hongyuan New Energy Technology Co., Ltd., indicates strategic market expansion efforts[6] Corporate Governance - The Company has adopted the Corporate Governance Code as the basis for its corporate governance practices and has complied with all applicable code provisions during the year ended December 31, 2024[178] - The composition of the Board includes Executive Directors, Non-executive Directors, and Independent Non-executive Directors, ensuring a diverse governance structure[195] - The Company has established a whistleblowing channel for employees and other contacts to anonymously report concerns about possible improprieties[184] - The Board meets at least four times a year, ensuring that all Directors have the opportunity to include matters in the agenda for discussion[197] - The Company emphasizes integrity and compliant operation as the foundation of corporate development, continuously improving compliance management systems[179] Management and Personnel - Mr. Li has over 18 years of experience in the wind power industry, having served as general manager and chairman of CECEP Wind-power Investment Corporation[154] - Ms. Wu has more than 20 years of experience in finance management, previously managing finances at Nanjing Powder Metallurgy Factory and Shanghai Nature Power Technology Co., Ltd.[161] - Mr. Kang has over 20 years of experience in strategic management and investor relations for large state-owned and multinational companies[148] - The Group employed a total of 160 employees as of December 31, 2024, an increase from 151 employees in 2023[112] Operational Efficiency - The Group has automated production capabilities with 2 production lines and 6 test benches, ensuring efficient manufacturing processes[7] - The gearing ratio improved to approximately 44% in 2024, a decrease of 6% from 50% in 2023, mainly due to optimization of supply chain management[99] - Capital expenditures in 2024 totaled approximately RMB7 million, significantly down from approximately RMB26 million in 2023, primarily for the purchase of energy storage production equipment[102] Cash Flow and Liabilities - Cash and cash equivalents decreased to RMB 58,202,000, down 23% from RMB 75,921,000 in 2023[24] - Total liabilities reduced to RMB 176,135,000, a 31% decrease from RMB 256,785,000 in 2023[24] - The Group's cash and cash equivalents for 2024 amounted to approximately RMB51 million, a decrease of approximately RMB5 million or approximately 8.9% from approximately RMB56 million in 2023, primarily due to operating losses[101] Foreign Exchange Risk - The company primarily operates in China, with its main business settled in RMB, but it has confirmed foreign currency assets and liabilities, mainly in USD, which expose it to foreign exchange risk[122] - The management has not entered into any forward foreign exchange contracts to hedge against foreign exchange risk but will continue to monitor and take prudent measures to mitigate this risk[122]

Financial Performance - The total revenue for the year ended December 31, 2024, was RMB 148,280,000, a decrease of 47.8% compared to RMB 284,075,000 in 2023[4] - The gross loss for the year was RMB 8,968,000, compared to a gross profit of RMB 26,945,000 in the previous year, indicating a significant decline in profitability[4] - The operating loss increased to RMB 38,880,000 from RMB 8,639,000 in 2023, reflecting a worsening operational performance[4] - The net loss for the year was RMB 39,428,000, compared to a net loss of RMB 12,482,000 in 2023, representing an increase in losses by 216.5%[4] - Basic and diluted loss per share was RMB 0.139, compared to RMB 0.041 in the previous year, indicating a deterioration in shareholder value[4] - The company reported a total loss of RMB 42,080,000 for the year ended December 31, 2024, compared to a profit of RMB 11,661,000 in 2023[19] - The group recorded a gross loss of approximately RMB 9 million in 2024, a decrease of RMB 36 million or 133% from a gross loss of RMB 27 million in 2023, mainly due to intense market competition and rising raw material costs[52] - The group reported a net loss of approximately RMB 39.4 million in 2024, an increase of RMB 26.9 million from a net loss of RMB 12.5 million in 2023, primarily due to declining gross margins in the variable pitch control system and energy storage businesses[59] Asset and Liability Management - Non-current assets decreased to RMB 133,747,000 from RMB 141,226,000, showing a decline in long-term asset value[6] - Current assets decreased significantly to RMB 264,592,000 from RMB 377,113,000, indicating liquidity challenges[6] - Total liabilities decreased to RMB 168,534,000 from RMB 244,078,000, reflecting a reduction in financial obligations[6] - The company's equity attributable to shareholders decreased to RMB 223,237,000 from RMB 257,892,000, indicating a decline in net worth[7] - The asset-liability ratio for the group in 2024 is approximately 44%, a decrease of 6% from 50% in 2023, mainly due to optimized supply chain management[61] Revenue Breakdown - The sales of pitch control systems and related components generated revenue of RMB 53,669,000 in 2024, down 75.3% from RMB 217,569,000 in 2023[18] - The energy storage business saw significant growth, with revenue increasing to RMB 68,686,000 in 2024 from RMB 29,114,000 in 2023, representing a growth of 135.5%[18] - In 2024, the company's total revenue was approximately RMB 148.3 million, a decrease of about RMB 135.8 million or 47.8% compared to 2023, primarily due to a reduction in the delivery of blade transformers and maintenance services[47] - The sales revenue from the blade control system and related components in 2024 was approximately RMB 53.7 million, a decrease of about RMB 163.9 million or 75% compared to 2023, due to a decline in orders received and delivered[49] - The energy storage business achieved a revenue of approximately RMB 68.7 million in 2024, an increase of about RMB 40 million or 136% compared to 2023, reflecting customer recognition of the energy storage systems[49] Cost Management - Employee costs decreased from RMB 36,103,000 in 2023 to RMB 34,258,000 in 2024, reflecting a reduction of approximately 5.1%[5] - The cost of inventory recognized as an expense dropped significantly from RMB 246,037,000 in 2023 to RMB 148,019,000 in 2024, a decrease of about 39.9%[26] - The company's sales cost for 2024 was approximately RMB 157 million, a decrease of about RMB 100 million or 39% compared to 2023[50] - In 2024, the sales cost of the energy storage business is approximately RMB 77.1 million, an increase of RMB 55.1 million compared to RMB 22 million in 2023, primarily due to increased material and labor costs driven by higher revenue in the energy storage segment[51] Operational Highlights - The company continues to focus on the research, development, and sales of pitch control systems and related components, as well as energy storage business[10] - The company delivered 494 sets of blade control system products in 2024, a decrease of 73% compared to the previous year[41] - The annual operating hours of the company's wind farm in 2024 were 2,407 hours, with a total wind power generation of 46.47 million kWh[42] - The company has made progress in energy storage integration, with two project orders secured and the self-developed "1P104S Pack project" advancing smoothly[44] - The company aims to establish a complementary supply chain for energy storage products and systems to enhance its competitive advantage[45] Other Financial Information - Other income for 2024 was RMB 1,642,000, a decrease of 56.3% from RMB 3,756,000 in 2023[21] - The company incurred net financing costs of RMB 3,200,000 in 2024, compared to RMB 3,022,000 in 2023[19] - The company received government subsidies totaling RMB 113,000 in 2024, up from RMB 78,000 in 2023, reflecting support for technology development[22] - The net loss from foreign exchange was RMB 72,000 in 2024, compared to a loss of RMB 237,000 in 2023[23] - The company recorded a deferred tax expense of RMB (3,357,000) in 2024, compared to RMB (915,000) in 2023, indicating an increase in deferred tax liabilities[27] - The group’s other income in 2024 is approximately RMB 1.6 million, a decrease of RMB 2.4 million from RMB 4 million in 2023, mainly due to reduced VAT refunds[54] - The group’s administrative and other operating expenses decreased to approximately RMB 25 million in 2024 from RMB 31 million in 2023, a reduction of RMB 6 million due to lower labor costs and expenses[56] Shareholder Information - The company has not declared or paid any dividends for the years ending December 31, 2024, and 2023[29] - The board does not recommend the payment of a final dividend for the year ending December 31, 2024 (2023: none) [76] - The average number of ordinary shares outstanding remained constant at 250,000,000 for both 2024 and 2023[28] - The annual general meeting will be held on June 27, 2025, with a notice to be published in due course [79] - Share transfer registration will be suspended from June 24, 2025, to June 27, 2025, to qualify for voting at the annual general meeting [80] - The annual results announcement will be published on the company's website and the stock exchange website, with the annual report to be sent to shareholders as applicable [81] Audit and Compliance - The audit committee has reviewed the annual performance and the consolidated financial statements for the year ending December 31, 2024, prepared in accordance with international financial reporting standards [77] - The group's auditor, KPMG, confirmed that the figures in the preliminary announcement align with the audited consolidated financial statements for the year ending December 31, 2024 [78] - The group has no significant contingent liabilities as of December 31, 2024[65]

| --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|-------|----------------|--------------| | | | | | | | | | | | | | | | | | | | | | | | | | 202 INTERIM RE | | | | | | | | | | | | | | | | | | | | | | | | | | | | 纳泉智慧能源 | 中 國 納 泉 能 源 科 技 控 股 有 限 公 司 China Nature Energy Technology Holdings Limited (於 開 曼 群 島 註 冊 成 立 之 有 限 公 司) (Incorporated in the Cayman Islands with limited liability) 股份代號 Stock code : 1597 CONTENTS 目錄 | --- | --- | --- | |---------------------------- ...

Financial Performance - For the six months ended June 30, 2024, the company reported revenue of RMB 49,241 thousand, a decrease of 60.3% compared to RMB 123,806 thousand for the same period in 2023[2] - The gross profit for the same period was RMB 43 thousand, significantly down from RMB 9,608 thousand in 2023, indicating a drastic decline in profitability[2] - Operating loss for the six months was RMB 14,988 thousand, compared to a loss of RMB 3,715 thousand in the previous year, reflecting a worsening operational performance[2] - The net loss for the period was RMB 15,070 thousand, which is a 174.5% increase from the net loss of RMB 5,467 thousand in 2023[2] - Basic and diluted loss per share for the period was RMB 0.053, compared to RMB 0.018 in the same period last year[2] - The company reported a total comprehensive loss of RMB 15,088 thousand for the period, compared to RMB 5,478 thousand in 2023, indicating a significant increase in overall losses[3] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 464,596 thousand, down from RMB 518,339 thousand as of December 31, 2023, indicating a decrease of 10.4%[4] - Current liabilities increased to RMB 208,326 thousand from RMB 244,078 thousand, a decrease of 14.6%[4] - The company's cash and cash equivalents decreased to RMB 36,701 thousand from RMB 55,824 thousand, a decline of 34.3%[4] - Non-current assets decreased to RMB 137,936 thousand from RMB 141,226 thousand, a decline of 2.0%[4] - Trade receivables and notes receivable, net of loss provisions, amounted to RMB 140,998,000 as of June 30, 2024, compared to RMB 212,660,000 as of December 31, 2023[28] - Trade payables decreased to RMB 59,357 million as of June 30, 2024, from RMB 77,581 million as of December 31, 2023, a reduction of approximately 23.4%[39] - Other payables decreased to RMB 41,103 million as of June 30, 2024, down from RMB 46,322 million as of December 31, 2023, reflecting a decline of about 11.5%[41] Revenue Breakdown - The revenue from the sales of pitch control systems and related components was RMB 19,921 thousand, down 80.7% from RMB 103,021 thousand year-over-year[10] - The energy storage business saw significant growth, with revenue increasing to RMB 14,297 thousand from RMB 551 thousand, representing a growth of 2,493.1%[10] - Total revenue for the first half of 2024 was approximately RMB 49.24 million, a decrease of 60% compared to RMB 124 million in the first half of 2023, primarily due to a reduction in sales orders for the pitch control system[55] - Revenue from the pitch control system business in the first half of 2024 was approximately RMB 19.92 million, a decrease of about RMB 83 million or approximately 81% compared to the same period in 2023[56] - The company reported a gross profit of approximately RMB 0 million for the first half of 2024, a decrease of approximately 100% from RMB 10 million in the first half of 2023, resulting in a gross margin of 0%[59] - The energy storage business generated revenue of approximately RMB 14.3 million in the first half of 2024, significantly up from RMB 0.55 million in the same period of 2023[55] Expenses and Costs - The cost of inventory recognized as an expense for the six months ended June 30, 2024, was RMB 44,917,000, down from RMB 108,166,000 in 2023[22] - Sales and distribution expenses increased to approximately RMB 4 million in the first half of 2024 from RMB 3 million in the same period of 2023, primarily due to increased promotional costs for the energy storage business[61] - The group incurred capital expenditures of approximately RMB 3 million in the first half of 2024, a decrease of about RMB 17 million from RMB 20 million in the first half of 2023[69] Financing and Cash Flow - The net financing cost for the six months ended June 30, 2024, was RMB 1,714,000, compared to RMB 1,277,000 for the same period in 2023[21] - As of June 30, 2024, cash and cash equivalents in mainland China amounted to RMB 28,666 million, a decrease from RMB 44,573 million as of December 31, 2023, reflecting a decline of approximately 35.7%[33] - Pledged deposits for notes payable were RMB 10,674 million as of June 30, 2024, down from RMB 20,097 million as of December 31, 2023, representing a decrease of about 46.9%[34] - Total bank loans and other borrowings increased to RMB 93,606 million as of June 30, 2024, compared to RMB 68,561 million as of December 31, 2023, marking an increase of approximately 36.5%[35] - As of June 30, 2024, the group had bank and other borrowings of approximately RMB 94 million, an increase of about RMB 25 million from RMB 69 million as of December 31, 2023[67] Strategic Focus and Market Position - The company has maintained deep cooperation with high-quality customers, expanding its market share in pitch control systems, now covering five of the top ten wind turbine manufacturers in China[48] - The company plans to strengthen its energy storage team and enhance research and development of energy storage products and systems, aiming to make energy storage a core business[53] - The company is focused on maintaining its market share in the pitch control system and stabilizing its mature wind power generation and operation and maintenance business[54] - The group faces risks related to policy uncertainty that could adversely affect demand in the wind power and energy storage sectors[72] Employee and Corporate Governance - The group employed 174 staff as of June 30, 2024, an increase from 151 employees as of December 31, 2023[71] - The board does not recommend the distribution of an interim dividend for the six months ended June 30, 2024[79] - The group has no significant contingent liabilities as of June 30, 2024[69] - The group has not purchased, sold, or redeemed any of its listed securities during the six months ended June 30, 2024[75] - The company has not declared or paid any dividends for the six months ended June 30, 2024[42] Accounting and Compliance - The company did not adopt any new accounting standards or interpretations that would significantly impact the financial statements for the current accounting period[3] - The group has not entered into any forward foreign exchange contracts to hedge foreign exchange risks as of June 30, 2024[74]

Financial Performance and Management - The Group's capital expenditure for 2023 amounted to approximately RMB 26.4 million, a significant increase from RMB 6.5 million in 2022, primarily for the acquisition of energy storage production lines and other fixed assets[2]. - The Group incurred short-term borrowings of RMB 9.9 million during the year, with RMB 8 million secured against the intellectual property of a subsidiary[3]. - The Group's financial performance is significantly influenced by policy changes in the new energy power industry, which could lead to reduced demand and impact operational performance[7]. - The Group's financial management practices ensure sufficient working capital to meet current and future operational and financial needs[1]. - The company does not have a predetermined dividend payout ratio, and any future dividends will depend on the board's discretion based on operational performance, cash flow, and financial condition[71]. Human Resources and Employment - As of December 31, 2023, the Group employed a total of 151 employees, a decrease from 218 employees as of December 31, 2022[4]. - As of December 31, 2023, the Group had a total of 151 employees, with 10% of senior management and 34% of the total workforce being female[175]. - The Board comprises seven members, including two female Directors and five male Directors, with a diverse range of skills and experiences in various fields[171]. Governance and Compliance - The company has complied with all applicable code provisions under the Corporate Governance Code during the year ended December 31, 2023[54]. - The company has adopted the principles and code provisions set out in the Corporate Governance Code as the basis for its governance practices[54]. - The company is committed to sustainable development by enhancing compliance management systems[56]. - The company prohibits unauthorized use of confidential or inside information and regularly reminds directors and employees about compliance with securities dealing restrictions[92]. - The Company complied with relevant legal and regulatory requirements during the year, ensuring effective corporate governance practices[179]. Board Structure and Diversity - The Group's board composition includes a mix of executive and independent non-executive directors, ensuring diverse governance[37]. - The Company has adopted a Board Diversity Policy to enhance diversity at the Board level, recognizing its importance for competitive advantage[170]. - Diversity in the Board's composition is considered from various perspectives, including professional experience, gender, age, and cultural background[200]. - The Nomination Committee is responsible for reviewing Board composition and making recommendations on the appointment and succession planning of Directors[162]. - The Nomination Committee evaluates the qualifications of retiring Directors standing for re-election at the annual general meeting[196]. Risk Management and Internal Control - The board reviewed the risk management and internal control systems for the year ended December 31, 2023, and deemed them effective and adequate[90]. - The company has established internal guidelines and procedures to monitor and mitigate risks arising from daily operations, which are crucial for business sustainability[88]. - The Audit Committee's primary duties include reviewing the Group's financial information, overseeing the financial reporting system, and ensuring compliance with accounting standards and legal requirements[125]. - The Board monitors the Group's operational and financial performance to ensure sound internal control and risk management systems are in place[133]. Committees and Meetings - The Company has established an Audit Committee, which held two meetings during the year ended December 31, 2023, to review and discuss the annual financial performance and interim financial results[130]. - The Remuneration Committee held one meeting during the year and made recommendations on the remuneration packages of individual executive Directors and senior management[190]. - The Nomination Committee held one meeting during the year ended December 31, 2023, focusing on the structure, size, composition, and diversity of the Board[196]. - The Audit Committee held two meetings during the year to discuss financial reporting systems, risk management, and internal control systems[186]. Research and Development - The Group's commitment to research and development is reflected in its investment in new technologies and solutions for the new energy sector[11].

Financial Performance - The company reported a loss attributable to equity shareholders of approximately RMB 10.1 million for 2023, a decrease of about RMB 15.5 million compared to a profit of approximately RMB 5.4 million in 2022[2]. - The group recorded a net loss of approximately RMB 12.5 million in 2023, a decrease of about 17.9 million from a net profit of RMB 5.4 million in 2022, mainly due to expenses related to the energy storage business and reduced gross margins in pitch control systems[37]. - The basic and diluted loss per share for 2023 was RMB (0.041), compared to earnings of RMB 0.021 per share in 2022[62]. - The company reported a comprehensive loss before tax of RMB 11,661 thousand in 2023, compared to a profit of RMB 7,237 thousand in 2022[102]. - Operating loss for 2023 was RMB 8,639,000, compared to an operating profit of RMB 9,199,000 in 2022[62]. Revenue and Sales - The total revenue for the group in 2023 was RMB 284.1 million, an increase of 29% compared to RMB 219.9 million in 2022, primarily due to an increase in the number of delivered pitch control systems and growth in the energy storage business[32]. - Revenue from pitch control systems was approximately RMB 217.6 million in 2023, up by about RMB 44.7 million or approximately 26% from 2022, driven by an increase in orders received and delivered[34]. - Energy storage revenue surged to RMB 29.1 million in 2023, a significant increase from RMB 4 million in 2022, reflecting customer recognition of the energy storage solutions[35]. - Reportable segment revenue increased from RMB 219,949 thousand in 2022 to RMB 284,075 thousand in 2023, representing a growth of about 29%[102]. Costs and Expenses - The total cost of sales for 2023 was RMB 257 million, an increase of RMB 65 million from RMB 192 million in 2022[7]. - The gross profit for 2023 was approximately RMB 27 million, a decrease of about RMB 1 million or 2% from RMB 28 million in 2022, with the overall gross margin declining from 13% in 2022 to 9% in 2023[10]. - Administrative and other operating expenses for 2023 were approximately RMB 31 million, an increase of RMB 15 million from about RMB 16 million in 2022, primarily due to increased labor costs and expenses associated with the energy storage business[36]. - The company’s financial expenses for 2023 were approximately RMB 3 million, an increase of about 54% from RMB 2 million in 2022, mainly due to increased bank loans for new energy storage projects[15]. Assets and Liabilities - The asset-liability ratio for 2023 was approximately 50%, an increase of 39% from 11% in 2022, primarily due to an increase in bank loans and other borrowings[3]. - The group’s total assets less current liabilities amounted to RMB 274.3 million as of December 31, 2023, compared to RMB 272.8 million in 2022[45]. - The group had cash and cash equivalents of RMB 55.8 million as of December 31, 2023, an increase from RMB 43.9 million in 2022[45]. - Trade payables increased from RMB 126,632 thousand in 2022 to RMB 171,842 thousand in 2023, an increase of about 35.7%[96]. Government Support and Grants - The company received unconditional government subsidies of RMB 78,000 and RMB 4,267,000 for technology development and local economic contributions in 2023 and 2022, respectively[79]. - Government grants decreased significantly from RMB 4,267 thousand in 2022 to RMB 78 thousand in 2023, a decline of about 98.2%[103]. Future Plans and Investments - The company plans to strengthen its energy storage team and enhance research and development of energy storage products and systems in 2024, aiming to make energy storage a core business[30]. - The company plans to invest in the development of a new distributed wind farm in Lingqiu County, Datong City, Shanxi Province, using part of the IPO proceeds[146]. Corporate Governance and Management - The company emphasizes the importance of good corporate governance standards to protect shareholder interests and enhance corporate value[163]. - The company has maintained strict financial management and credit policies to mitigate risks associated with cash flow and accounts receivable[143]. Miscellaneous - The company has not declared or paid any dividends for both 2023 and 2022[115]. - The company has not engaged in any significant acquisitions or disposals during the fiscal year ending December 31, 2023[148]. - The company has confirmed that it has no foreign exchange hedging contracts in place, exposing it to currency risk primarily from USD-denominated assets and liabilities[156].

Financial Performance - For the six months ended June 30, 2023, the total revenue was RMB 108,166,000, an increase from RMB 73,063,000 in 2022, representing a growth of 47.9%[2] - For the six months ended June 30, 2023, the company's total revenue was approximately RMB 124 million, an increase of 37.8% compared to approximately RMB 90 million in the same period of 2022[37] - Revenue from the pitch control system business amounted to approximately RMB103 million, an increase of approximately RMB34 million or 50% compared to the first half of 2022[65] - Revenue from the wind power generation business for the first half of 2023 was approximately RMB10 million, showing a relatively small change compared to the same period in 2022[66] - Revenue from the wind farm operation and maintenance business was approximately RMB11 million, a decrease of approximately RMB1 million compared to the first half of 2022[68] - The gross profit for the same period was RMB 9.6 million, reflecting a decrease of 5% from RMB 10.1 million in the previous year[42] - The gross profit margin decreased to 8% from 11% year-on-year, indicating a decline of 3 percentage points[42] - The gross profit for the Group was approximately RMB 10 million, consistent with the first half of 2022, but the overall gross profit margin decreased by approximately 3 percentage points to 8%[104] - The gross profit margin for the pitch control system decreased from 4% in the first half of 2022 to 3% in the first half of 2023, mainly due to reduced selling prices to stabilize and capture market share[105] Liabilities and Financial Position - Total liabilities increased to RMB 235,133,000, a rise of 35.3% from RMB 173,723,000 in 2022[14] - Net liabilities reached RMB 185,824,000, reflecting a significant increase of 71.9% compared to RMB 108,106,000 in the previous year[14] - As of 30 June 2023, the Group's gearing ratio was 47%, an increase of approximately 8% from 39% as of 31 December 2022, primarily due to increased suppliers' credit payments[113] - The cash and cash equivalents of the Group as of 30 June 2023 were approximately RMB 30 million, a decrease of approximately RMB 14 million from RMB 44 million as of 31 December 2022, mainly due to payments for the acquisition of property, plant, and equipment for the energy storage project[122] - The Group's interest-bearing bank and other borrowings amounted to RMB42 million, an increase of approximately RMB3 million from RMB39 million as of 31 December 2022[145] Operational Highlights - The Group delivered a total of 881 sets of pitch control system products during the same period, including models ranging from 4 MW to 14 MW[21] - The semi-annual total wind power generated and admitted to the power grid from the Duolun Wind Farm was 29.07 million kWh, with utilization hours of 1,490 hours[26] - The Group's wind farm operated for 1,490 hours in the first half of 2023, generating a total wind power output of 29.07 million kWh[56] - The company delivered a total of 881 pitch control system products, covering models ranging from 4 MW to 14 MW[52] - The wind power generation business operates a centralized wind farm with a total installed capacity of 19.5 MW, generating power sold to the local grid[52] Market and Strategic Initiatives - The Group aims to deepen its domestic market share in the pitch control systems industry while enhancing R&D in the energy storage sector[33] - The overall wind power industry is expected to experience long-term high-speed development opportunities, driven by the trend towards decarbonization and the goal of achieving carbon neutrality by 2060[45] - The company aims to expand its market share in pitch control systems, having covered five out of the top ten turbine manufacturers in China[52] - The company anticipates a concentrated release of accumulated projects in the second half of the year due to seasonal characteristics of wind power construction[36] - The company continues to focus on the development and integration of customized pitch control systems, generating revenue from product sales and integration charges[48] Expenses and Cost Management - The cost of sales for the pitch control system business was approximately RMB100 million, representing an increase of approximately 52% from the first half of 2022[98] - The cost of sales for the Group's business segments amounted to approximately RMB114 million, an increase of approximately 43% from approximately RMB34 million in the first half of 2022[97] - Selling and distribution expenses for the first half of 2023 amounted to approximately RMB 3 million, an increase of RMB 1 million compared to RMB 2 million in the first half of 2022, mainly due to increased revenue and staffing costs[137] - For the six months ended 30 June 2023, the Group's administrative and other operating expenses increased to approximately RMB11 million, up from RMB8 million in the first half of 2022, representing a rise of approximately 37.5%[138] Human Resources and Management - The Group's operation and maintenance team was reduced to 3 persons, focusing on sales of consumables due to changes in the service fee settlement model[28] - The Group employed a total of 113 employees, a decrease from 218 employees as of 31 December 2022[149] - The company aims to recruit 70 additional service personnel to expand wind farm operation and maintenance services, with a budget of RMB 3.6 million[181] Governance and Compliance - The Company has complied with all applicable code provisions under the Corporate Governance Code during the six months ended June 30, 2023[185] - The Company has not purchased, sold, or redeemed any of its listed securities for the six months ended June 30, 2023[191] - The Company has conditionally adopted the Share Option Scheme to reward various stakeholders, including employees and suppliers[197] - The total number of shares that may be issued upon exercise of all share options under the Share Option Scheme is 25,000,000 shares, which represents 10% of the total issued share capital of the Company as of the Adoption Date[199]

Revenue and Profitability - The total customer contract revenue for the six months ended June 30, 2023, was RMB 123,806,000, representing a 38% increase from RMB 89,712,000 in the same period of 2022[2]. - Revenue from the sale of pitch control systems and related components reached RMB 103,021,000, up 50% from RMB 68,574,000 year-over-year[2]. - The company reported a segment profit of RMB 9,608,000 for the six months ended June 30, 2023, down from RMB 10,111,000 in the same period of 2022[17]. - For the six months ended June 30, 2023, the company reported a loss of RMB 5,467,000 compared to a profit of RMB 3,218,000 in the same period of 2022, representing a significant decline in performance[40]. - Revenue for the six months ended June 30, 2023, was RMB 123,806,000, an increase of 38% from RMB 89,712,000 in the same period of 2022[43]. - The gross profit for the group for the six months ended June 30, 2023, was approximately RMB 10 million, remaining consistent with the same period in 2022, while the overall gross margin was 8%, a decrease of about 3 percentage points compared to the previous year[63]. - The gross profit from the pitch control system business was approximately RMB 3 million, with a gross margin decrease from 4% in the first half of 2022 to 3% in the first half of 2023[69]. - The gross profit from the wind power business was approximately RMB 6 million, remaining flat compared to the first half of 2022[70]. Costs and Expenses - The cost of sales increased to RMB 114,198,000 for the six months ended June 30, 2023, compared to RMB 79,601,000 in the previous year, leading to a gross profit decrease to RMB 9,608,000 from RMB 10,111,000[43]. - The sales cost of the variable pitch control system business for the first half of 2023 was approximately RMB 100 million, an increase of about RMB 34 million or 52% compared to the same period in 2022, primarily due to increased orders[59]. - The total sales cost for the group for the six months ended June 30, 2023, was approximately RMB 114 million, an increase of about RMB 34 million or 43% compared to the same period in 2022, mainly due to increased costs from variable pitch system orders[61]. - The sales cost for the wind farm operation and maintenance business was approximately RMB 9 million, a decrease of about RMB 1 million compared to approximately RMB 10 million in the first half of 2022[71]. - Administrative and other operating expenses were approximately RMB 11 million for the first half of 2023, an increase of RMB 3 million from approximately RMB 8 million in the same period of 2022, primarily due to increased management costs associated with the energy storage business team[118]. - Sales and distribution expenses were approximately RMB 3 million for the first half of 2023, an increase of RMB 1 million compared to RMB 2 million in the first half of 2022, mainly due to increased personnel and packaging costs[117]. Assets and Liabilities - The total assets for the reportable segments as of June 30, 2023, amounted to RMB 420,968,000, an increase from RMB 342,736,000 as of December 31, 2022[9]. - The total non-current assets increased to RMB 129,920,000 as of June 30, 2023, from RMB 100,866,000 at the end of 2022, reflecting growth in property, plant, and equipment[46]. - Current liabilities rose to RMB 373,738,000 as of June 30, 2023, compared to RMB 340,860,000 at the end of 2022, indicating increased financial obligations[46]. - The total trade and other payables reached RMB 173,820,000 as of June 30, 2023, compared to RMB 126,632,000 as of December 31, 2022[100]. - The current trade payables increased significantly to RMB 95,355,000 as of June 30, 2023, from RMB 41,057,000 as of December 31, 2022[100]. - As of June 30, 2023, trade receivables amounted to RMB 165,659,000, an increase of approximately 15% from RMB 144,123,000 as of December 31, 2022[98]. - The accounts receivable for electricity price surcharges amounted to RMB 53,815,000 as of June 30, 2023, compared to RMB 46,942,000 as of December 31, 2022[99]. - The debt-to-asset ratio increased to 47% as of June 30, 2023, up from 39% as of December 31, 2022, reflecting an increase of approximately 8% due to supplier credit from business growth[106]. Cash Flow and Financing - The balance of pledged bank deposits and cash equivalents was approximately RMB 493 million, a decrease of about RMB 163 million from approximately RMB 656 million as of December 31, 2022[109]. - Total cash and cash equivalents were approximately RMB 30 million as of June 30, 2023, a decrease of about RMB 14 million from approximately RMB 44 million as of December 31, 2022, primarily due to payments for the acquisition of energy storage project properties, plants, and equipment[122]. - The net financing costs increased to RMB 1,277,000 for the six months ended June 30, 2023, compared to RMB 1,125,000 in the previous year[43]. - The company is closely monitoring cash flow and credit risk management to mitigate financial risks associated with customer payment uncertainties[112]. - The company has fully utilized the net proceeds from its fundraising as of June 30, 2023, with no significant changes to the planned use of proceeds[113]. Government Support and Subsidies - The company received government subsidies of RMB 25,000 and RMB 4,230,000 for technology development and local economic contributions for the periods ended June 30, 2023, and 2022, respectively[25]. - Other income for the first half of 2023 was approximately RMB 1 million, a decrease of about RMB 4 million from approximately RMB 5 million in the first half of 2022, mainly due to fewer government subsidies received[116]. Corporate Governance - The board is committed to achieving good corporate governance standards to protect shareholder interests and enhance corporate value[141]. - The audit committee has been established according to the corporate governance code and consists of three independent non-executive directors[143]. - The audit committee has discussed the accounting principles and policies adopted by the group and reviewed the unaudited interim consolidated financial statements for the six months ended June 30, 2023[144]. - The board includes two executive directors and three independent non-executive directors as of the announcement date[145]. Operational Insights - The company’s operational focus includes the development and sales of wind energy-related consulting services, although specific revenue figures for this segment were not disclosed[5]. - The energy management system (EMS) products have matured and achieved sales, while the energy storage system products have completed preliminary investment stages and are moving towards self-developed products and sales[55]. - The group aims to deepen its market share in the pitch control system sector while enhancing the research and development of core products in the energy storage industry[74]. - The group has maintained stable customer orders, ensuring stable operations despite the overall new installations in the wind power industry being slightly below expectations[75]. - The company adjusted its operational maintenance team size in April 2023, leading to a reduction in labor costs while retaining the supply team for consumables[54]. - The company has not completed the equity transfer of the Lingqiu project as of June 30, 2023, due to unfulfilled delivery conditions[53]. - The group delivered 881 sets of pitch control system products in the first half of 2023, covering models from 4 MW to 14 MW[82]. - The group has not declared or distributed any dividends for the six months ended June 30, 2023[79]. Employment and Staffing - The group employed 113 staff as of June 30, 2023, a decrease from 218 staff as of December 31, 2022[136]. Capital Expenditures - Capital expenditures for the first half of 2023 amounted to approximately RMB 20 million, an increase of RMB 18 million compared to RMB 2 million in the same period of 2022, mainly for payments related to the acquisition of energy storage project properties, plants, and equipment[123]. Losses and Earnings Per Share - The company reported a basic and diluted loss per share of RMB 0.018 for the six months ended June 30, 2023, compared to earnings of RMB 0.013 in the same period of 2022[43]. - The group reported a loss of approximately RMB 5 million for the six months ended June 30, 2023, a decrease of about RMB 8 million compared to a profit of approximately RMB 3 million in the same period of 2022[107]. - The group reported a loss attributable to owners of approximately RMB 4 million for the six months ended June 30, 2023, a decrease of about RMB 7 million compared to a profit of RMB 3 million in the same period of 2022[120].

Financial Performance - Revenue for the year ended December 31, 2022, was RMB 219,949,000, a decrease of 29.7% compared to RMB 312,864,000 in 2021[17]. - Gross profit for 2022 was RMB 27,555,000, down 39.9% from RMB 45,873,000 in 2021, resulting in a gross profit margin of 12.5%[17]. - Profit attributable to shareholders decreased by 74.5% to RMB 5,374,000 in 2022 from RMB 21,069,000 in 2021[17]. - Earnings per share for 2022 was RMB 0.021, a decline of 75.0% compared to RMB 0.084 in 2021[17]. - In 2022, the Group achieved an operating revenue of RMB 219.9 million and a net profit of RMB 5.4 million, indicating a stable financial condition with sufficient cash flow to support business expansion[23][25]. - In 2022, the Group recorded total revenue of approximately RMB 219.9 million, a decrease of 29.7% from RMB 312.9 million in 2021, primarily due to reduced orders in the pitch control system and operation and maintenance businesses caused by the pandemic[109][111]. - The Group's profit attributable to equity shareholders in 2022 was approximately RMB 5.4 million, a decrease of approximately RMB 15.7 million from RMB 21.1 million in 2021[132][135]. Cash Flow and Liquidity - Cash and cash equivalents and pledged deposits decreased by 21.0% to RMB 65,617,000 from RMB 83,020,000 in 2021[19]. - Cash and cash equivalents increased to approximately RMB 43.9 million in 2022, an increase of 8.1% from RMB 40.6 million in 2021[158]. - The Group's cash flow is adequate to maintain normal operations for 12 months without the need for additional financing, even in worst-case scenarios such as secondary COVID-19 infections[199]. - The Group emphasizes strict financial management and credit policies to mitigate risks associated with accounts receivable and cash flow[197]. Assets and Liabilities - Total liabilities reduced by 29.0% to RMB 173,723,000 in 2022 from RMB 244,850,000 in 2021[19]. - Net liabilities decreased by 33.2% to RMB 108,106,000 in 2022 from RMB 161,830,000 in 2021[19]. - Total equity increased by 3.3% to RMB 268,003,000 in 2022 from RMB 259,561,000 in 2021[19]. - The gearing ratio decreased to approximately 39% in 2022 from 49% in 2021, primarily due to the repayment of bank borrowings[155]. Business Operations - The company operates a wind farm in Inner Mongolia with a total installed capacity of 19.5 MW, maintaining stable operations and selling green electricity[5]. - The company has established stable partnerships with major wind power manufacturers, enhancing its market position in the new energy sector[4]. - The Group delivered a total of 1,313 pitch control system products in 2022, representing a decrease of 30.3% from 2021[36]. - The annual utilization hours of the Duolun Wind Farm were 2,888 hours in 2022, generating a total of 56.32 million kWh of wind power admitted to the power grid[36]. - The Group's overall business environment in 2022 adversely affected its principal operating business, yet it continued to develop steadily[60]. Market Trends and Future Outlook - The installed capacity of new wind power in China is expected to reach 70–80 GW in 2023, reflecting a recovery in the industry post-pandemic[24][26]. - The new energy industry in China is expected to flourish in 2023 due to optimized pandemic policies and recovery efforts[22][25]. - The construction of new power systems in China is accelerating, leading to extensive demand in the energy storage market[24][26]. - The Group plans to strengthen its energy storage business and accelerate product R&D and business development in 2023[28][31]. - The Group aims to restore profit margins through R&D innovation and management optimization in response to market challenges[24][26]. Revenue Breakdown - In 2022, the Group's revenue from wind power generation was approximately RMB 18 million, a decrease of about RMB 4 million compared to 2021, primarily due to insufficient market electricity demand caused by the pandemic[61]. - Revenue from the pitch control system business in 2022 was approximately RMB 173 million, down about RMB 85 million or 32.9% from 2021, primarily due to reduced orders and a price reduction strategy[84]. - Revenue from wind farm operation and maintenance business amounted to approximately RMB 24 million, down by approximately RMB 8 million or 25% from 2021, attributed to decreased customer orders due to pandemic impacts[85]. - The energy storage EMS business generated revenue of approximately RMB 4 million in 2022, significantly up from approximately RMB 0.1 million in 2021, reflecting customer recognition of the self-developed energy management system[88]. - The Group's other revenue increased to approximately RMB 6 million in 2022, up by approximately RMB 1.3 million from RMB 4.7 million in 2021, mainly due to higher government grants received[96]. Cost and Expenses - The Group's total cost of sales for the pitch control system business was approximately RMB 162 million in 2022, a decrease of RMB 72 million or 30.8% from RMB 234 million in 2021[87]. - The Group's cost of sales in 2022 was approximately RMB 192 million, a decrease of RMB 75 million from RMB 267 million in 2021[117]. - The gross profit margin for the wind power generation business was approximately 51.6% in 2022, down 4.6 percentage points from 56.2% in 2021, primarily due to decreased revenue and higher depreciation costs[125]. - The gross profit margin for the wind farm operation and maintenance business was approximately 22.7%, a decrease of 7 percentage points from 29.7% in 2021, mainly due to reduced service fees[95]. - The gross profit margin of the pitch control system business decreased from 9.1% in 2021 to 6.5% in 2022, mainly due to rising raw material prices and reduced product prices impacted by the pandemic[63]. Strategic Initiatives - The Group plans to enhance its energy storage team and accelerate the development of energy storage products, aiming to establish energy storage as a core business[110]. - The Group's strategy includes providing energy storage products and solutions, energy management systems, and integrated energy simulation platforms to customers[57]. - The company aims to strengthen R&D capabilities with an investment of RMB 10.9 million to enhance pitch control systems and solutions[176]. - Marketing efforts are being increased to diversify the customer base in the pitch control system market, with an investment of RMB 3.4 million[176]. - The company is in discussions with suppliers for additional R&D equipment and software purchases, expected to be finalized in 2023[177].

Financial Performance - The total revenue for the group in 2022 was approximately RMB 219.9 million, a decrease of 29.7% compared to RMB 312.9 million in 2021, primarily due to the adverse effects of the pandemic on logistics, supply chains, and market development[4]. - The overall gross profit for the group in 2022 was approximately RMB 28 million, a decrease of about RMB 18 million or 39.1% from RMB 46 million in 2021[13]. - The operating profit for the group in 2022 was approximately RMB 9.2 million, down from RMB 29.6 million in 2021[21]. - The net profit for the year was RMB 5.4 million, a decrease from RMB 21.3 million in 2021, with basic and diluted earnings per share of RMB 0.021 compared to RMB 0.084 in the previous year[21]. - The company reported a net loss from foreign exchange of RMB 1,818,000 in 2022, compared to a loss of RMB 118,000 in 2021, indicating a significant increase in losses[57]. - The company's net profit attributable to equity shareholders for 2022 was approximately RMB 5.4 million, a decrease of about RMB 15.7 million or 74.6% compared to RMB 21.1 million in 2021[105][111]. Revenue Breakdown - The revenue from the variable pitch control system business in 2022 was approximately RMB 173 million, a decrease of about RMB 85 million or 32.9% compared to 2021, mainly due to reduced orders caused by the pandemic[19]. - The revenue from the energy storage management system business in 2022 was approximately RMB 4 million, a significant increase from RMB 0.1 million in 2021, indicating successful market acceptance of the self-developed product[10]. - Revenue from the sale of pitch control systems and related components decreased from RMB 257,782 million to RMB 172,888 million, a decline of about 32.9%[37]. - Revenue from energy management solutions increased significantly from RMB 104 million to RMB 2,835 million, a growth of approximately 2,628.8%[37]. - The company engaged in transactions with two customers that accounted for over 10% of total revenue, generating RMB 167,111 million in sales, down from RMB 230,875 million[36]. Cost and Expenses - The total sales cost for the group in 2022 was approximately RMB 192 million, a reduction of RMB 75 million compared to RMB 267 million in 2021[11]. - The sales cost of the wind power business in 2022 was approximately RMB 9 million, down from about RMB 10 million in 2021, primarily due to reduced maintenance costs[100]. - The sales cost of the operation and maintenance business was approximately RMB 18 million in 2022, a decrease of about 21.7% from RMB 23 million in 2021[100]. - The depreciation expense recognized as cost of goods sold was RMB 178,368,000 in 2022, down from RMB 251,139,000 in 2021, representing a decrease of about 29.0%[64]. - Financial expenses for 2022 were approximately RMB 2 million, a reduction of about 50% from RMB 4 million in 2021 due to repayment of bank and third-party loans[99]. Assets and Liabilities - The company's total assets decreased from RMB 403,655 million to RMB 340,860 million, a decline of approximately 15.5%[28]. - Current liabilities decreased from RMB 237,590 million to RMB 168,906 million, a reduction of about 29.0%[28]. - The net asset value increased from RMB 259,561 million to RMB 268,003 million, reflecting a growth of approximately 3.4%[29]. - The asset-liability ratio for 2022 was approximately 39%, down from 49% in 2021, mainly due to the repayment of bank loans by subsidiaries and other third-party borrowings[109]. - The total trade and other receivables decreased from RMB 269,555,000 in 2021 to RMB 226,356,000 in 2022, representing a decline of approximately 16%[72]. Government Support and Grants - Other income for the group in 2022 was approximately RMB 6 million, an increase from RMB 4.7 million in 2021, mainly due to increased government subsidies[14]. - The company received government grants totaling RMB 4,267,000 in 2022, up from RMB 2,281,000 in 2021, marking an increase of about 87%[56]. Research and Development - The company continues to focus on research and development in wind energy and energy management solutions, aiming for market expansion[31]. - The company has positioned energy storage as one of its core businesses, completing 10 order projects for energy management systems (EMS) in 2022[95]. - RMB 10.9 million has been invested to enhance R&D capabilities for the variable pitch control system and solution portfolio[122]. Operational Metrics - The company’s employee costs for 2022 were RMB 24,306,000, slightly down from RMB 24,729,000 in 2021, reflecting a decrease of about 1.7%[60]. - The company employed 218 staff as of December 31, 2022, an increase from 169 employees in 2021, with all employees under formal labor contracts[115]. - The company's operational team for maintenance services consisted of 111 members in 2022, primarily serving Envision Energy's wind farms across the country[93]. - In 2022, the company delivered 1,313 sets of pitch control systems, a decrease of 30.3% compared to 2021[89]. Future Plans and Investments - The company plans to use the IPO proceeds in accordance with its development strategy and market conditions in 2023[122]. - RMB 31.3 million has been designated for the development of a new distributed wind farm in Lingqiu County, Shanxi Province[122]. - The company has fully repaid RMB 21.4 million in loans owed to third parties related to the Dulun Wind Farm[122]. - The company has not engaged in any significant investments, acquisitions, or disposals as of December 31, 2022[127]. Risk Management - The company faced risks related to policy uncertainties that could impact the renewable energy industry and its main business operations[117]. - The company has implemented strict financial management and credit policies to mitigate financial risks associated with cash flow and receivables[118]. - The company reported no significant adverse impacts from the COVID-19 pandemic on its operations, with sufficient cash flow to sustain normal operations for 12 months without additional financing[120]. Corporate Governance - The company has established an audit committee to review and monitor its financial reporting procedures and internal controls, consisting of three independent non-executive directors[139]. - The audit committee has reviewed the annual performance and financial statements prepared in accordance with International Financial Reporting Standards for the year ending December 31, 2022[139].