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].

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 89,712,000, a decrease of 22.8% compared to RMB 116,276,000 in 2021[4] - Gross profit for the same period was RMB 10,111,000, down 53.7% from RMB 21,823,000 in 2021[4] - Profit attributable to shareholders was RMB 3,218,000, reflecting a significant decline of 74.5% from RMB 12,624,000 in the previous year[4] - Earnings per share decreased to RMB 0.013, compared to RMB 0.050 in 2021, marking a 74% decline[4] - The Group's total revenue for the six months ended June 30, 2022, was 89,712,000, compared to 116,276,000 in the previous period, reflecting the impact of market conditions[29] - For the six months ended 30 June 2022, the Group recorded total revenue of approximately RMB90 million, a decrease of 22.4% from approximately RMB116 million in the first half of 2021[30] - The gross profit for the Group was approximately RMB10 million, a decrease of 54.5% from approximately RMB22 million in the first half of 2021, with an overall gross profit margin of 11%, down approximately 8 percentage points[41] - The profit for the period amounted to approximately RMB 3 million, representing a decrease of approximately RMB 10 million or 76.9% from approximately RMB 13 million in the first half of 2021[58] Revenue Breakdown - Revenue from the pitch control system business amounted to approximately RMB69 million, representing a decrease of approximately RMB22 million or 24.2% from the first half of 2021, primarily due to a slowdown in wind farm investment caused by COVID-19[31] - Revenue from the wind power generation business was approximately RMB9 million, a decrease of approximately RMB3 million or 25% from the same period in 2021, attributed to weaker wind resources[33] - The total revenue from pitch control system related integration, manufacturing, and sales was 68,574,000, while wind power generation revenue was 9,420,000 for the six months ended June 30, 2022[29] - The Group's wind farm operation and maintenance revenue was 11,661,000, showing a stable performance in this segment[29] Cash and Liabilities - Cash and cash equivalents and pledged deposits totaled RMB 56,912,000, down 31.4% from RMB 83,020,000[4] - Total liabilities decreased by 14.3% to RMB 209,938,000 from RMB 244,850,000[4] - The Group's cash and cash equivalents as of June 30, 2022, amounted to approximately RMB 29 million, a decrease of approximately RMB 42 million from approximately RMB 71 million as of June 30, 2021[68] - As of June 30, 2022, the balance of pledged bank deposits and cash and cash equivalents was approximately RMB 56.9 million, a decrease of approximately RMB 26.1 million from approximately RMB 83.0 million as of December 31, 2021[66] Operational Developments - The company has established a mature business network in Northern, Eastern, and Southern China, focusing on wind power pitch control systems and energy storage[5] - The Group completed the construction of a 4MW/4MWh wind power storage demonstration project, which is about to enter the commissioning stage[21] - The Group aims to strengthen research and development of energy storage products and improve the product system to enhance profitability in the energy storage sector[25] - The Group maintains stable partnerships with customers, ensuring the delivery of orders despite challenges posed by COVID-19[26] Market and Industry Context - The Chinese government aims for non-fossil energy consumption to reach about 25% and total installed capacity of wind and solar energy to exceed 1.2 billion kilowatts by 2030[6] - Energy storage is becoming a crucial technology for enhancing the flexibility of new energy generation systems, with rapid development expected in China's energy storage market[7] Employee and Operational Changes - The Group employed a total of 158 employees as of June 30, 2022, down from 169 employees as of December 31, 2021[69] - The Group plans to recruit 70 additional service personnel to expand wind farm operations and maintenance services, with an estimated utilization of RMB 3.6 million[84] Shareholder Information - The Company did not recommend the payment of an interim dividend for the six months ended June 30, 2022[124] - As of June 30, 2022, Mr. Cheng Liquan Richard holds 187,500,000 shares, representing a 75% interest in a controlled corporation[109] - The total number of shares in issue as of June 30, 2022, is 250,000,000[120] Compliance and Governance - The Audit Committee consists of three independent non-executive directors and has reviewed the Group's unaudited interim consolidated financial statements[123] - The auditor's report on the financial statements was unqualified, indicating no significant issues were raised[143] Future Plans and Investments - The Group is investing RMB 31.3 million into the development of a new distributed wind farm in Lingqiu, Shanxi[84] - The company plans to use the remaining net proceeds to continuously recruit appropriate operation and maintenance personnel in the second half of 2022[90]

Business Operations - The company operates a Duolun Wind Farm in Inner Mongolia with a total installed capacity of 19.5 MW, consisting of 13 wind turbines, selling green electricity to the local power grid[5]. - The company has established a mature business network in North, East, and South China, supported by a team of over 170 staff across R&D, production, sales, operation, maintenance, and investment[3]. - The company focuses on integrated services for the new energy power industry, forming core businesses such as pitch control systems, wind power generation, operation and maintenance, and energy storage[10]. - The company has successfully served major wind power manufacturers, including Envision Energy and Shanghai Electric, enhancing its market presence[4]. - The company employs nearly 60 staff for wind power post-market operation and maintenance services across the PRC[6]. - The company is committed to providing overall solutions for integrated energy projects, including wind power storage and smart micro-grids[7]. Financial Performance - Revenue for 2021 was RMB 312.9 million, a decrease of 7.7% from RMB 338.9 million in 2020[13]. - Gross profit for 2021 was RMB 45.9 million, down 37.8% from RMB 73.6 million in 2020[13]. - Profit attributable to shareholders decreased by 47.6% to RMB 21.1 million in 2021 from RMB 40.2 million in 2020[13]. - Total liabilities decreased by 20.1% to RMB 244.9 million in 2021 from RMB 306.3 million in 2020[14]. - Total equity increased by 7.7% to RMB 259.6 million in 2021 from RMB 241.1 million in 2020[14]. - The gross profit for 2021 was approximately RMB 46 million, a decrease of approximately RMB 28 million or 37.8% from RMB 74 million in 2020, with a gross profit margin dropping from 21.7% to 14.7%[56]. - The gross profit margin for the pitch control system business decreased from 18.4% in 2020 to 9.1% in 2021, primarily due to reduced product prices and increased raw material costs[57]. - The Group's finance costs decreased by approximately 33.3% to RMB 4 million in 2021 from RMB 6 million in 2020, mainly due to the repayment of part of bank borrowings[70]. - The gearing ratio improved to 49% in 2021, a decrease of 7% from 56% in 2020, attributed to the repayment of borrowings[71]. - The net profit for 2021 was approximately RMB 21.3 million, representing a decrease of approximately RMB 19.1 million or 47.3% from RMB 40.4 million in 2020[73]. Market and Growth Opportunities - The new energy storage market is expected to grow at an annual average rate of over 50% during the "14th Five-Year" Plan, potentially reaching a market size of RMB 100 billion[17]. - The national target for new energy storage is to reach a cumulative installed capacity of over 30 million kilowatts by 2025, indicating significant growth opportunities in the sector[38][40]. - The Group plans to enhance its energy storage product system and develop customer-side energy storage projects to create a competitive business segment[39][41]. Research and Development - In 2021, the Group completed the "Nature 3060 Energy Management System (NQEMS)", marking a breakthrough in energy storage EMS[34]. - The Group commenced construction of the "4MW/4MWh wind power storage demonstration project" in Duolun Wind Farm, aiming for commissioning and grid connection by February 2022[34]. - The company aims to strengthen R&D capabilities for pitch control systems, allocating RMB 10.9 million for this purpose[107]. - The company emphasizes the importance of R&D and has appointed experienced professionals in key management positions to drive innovation[154][156]. Management and Governance - The company has a strong management team with extensive experience in the power industry, which is expected to benefit business development[129]. - The company is focused on expanding its market presence in the renewable energy sector, particularly in wind power projects[146]. - The Board of Directors is committed to good corporate governance standards to safeguard shareholder interests and enhance corporate value[170]. - The Company has complied with all applicable code provisions under the Corporate Governance Code during the year ended December 31, 2021[171]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific aspects of its affairs[198]. Human Resources - As of December 31, 2021, the Group employed a total of 169 employees, an increase from 165 employees in 2020, with all employees under labor contracts[89]. - The company aims to recruit 70 additional service personnel to expand wind farm operation and maintenance services, with an estimated cost of RMB 3.6 million[105]. - The company recruited 1 additional sales personnel, utilizing approximately RMB 0.05 million for this purpose, and expects to continue expanding its sales team in 2022[109]. - The company purchased R&D equipment and recruited 9 core technology personnel, utilizing approximately RMB 2 million in total, and is negotiating for additional R&D equipment and software[111]. Impact of COVID-19 - The Group did not experience any impact on production, order delivery, corporate operation, and finance due to the COVID-19 pandemic, thanks to effective prevention and control measures[97]. - The Group's cash flow is sufficient to maintain normal operations for 12 months even in a worst-case scenario of continued COVID-19 spread[102]. - The pandemic is not expected to have a significant impact on the Group's business operations in 2022[102]. Share Issuance and Proceeds - The Company issued 62.5 million new shares, receiving net proceeds of approximately HK$112.6 million (approximately RMB 98.2 million) from the listing[99]. - As of December 31, 2021, the Group has utilized part of the net proceeds from the listing, with unutilized proceeds placed in a licensed bank in Hong Kong[103]. - The total remaining net proceeds available as of December 31, 2021, is RMB 3.9 million for general working capital[107].

Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 116,276,000, a decrease of 4.7% compared to RMB 121,968,000 in 2020[15]. - Gross profit for the same period was RMB 21,823,000, down 24.8% from RMB 29,017,000 in 2020, resulting in a gross profit margin of 19%[15]. - Profit attributable to shareholders decreased by 22.9% to RMB 12,624,000 from RMB 16,363,000 in 2020[15]. - Earnings per share dropped by 42.5% to RMB 0.050 from RMB 0.087 in the previous year[15]. - The Group recorded total revenue of approximately RMB 116 million for the six months ended 30 June 2021, a decrease of 4.7% from RMB 122 million in the same period of 2020, primarily due to lower selling prices of pitch control systems[38]. - For the six months ended June 30, 2021, the total revenue of the Group was approximately RMB116 million, a decrease of 4.7% compared to approximately RMB122 million in the same period of 2020[39]. - Revenue from the pitch control system business was approximately RMB91 million, representing a decrease of approximately RMB4 million or 4.2% from the first half of 2020[40]. - Revenue from the wind power generation business increased to approximately RMB12 million, an increase of approximately RMB3 million or 33.3% from the same period in 2020[41]. - Revenue from wind farm operation and maintenance decreased to approximately RMB13 million, a decrease of approximately RMB4 million or 23.5% from approximately RMB17 million in the first half of 2020[42]. - The Group's profit for the period amounted to approximately RMB13 million, representing a decrease of approximately RMB3 million or 18.8% from approximately RMB16 million in the first half of 2020[58]. - The total comprehensive income for the period was RMB 11,779,000, down 29.1% from RMB 16,567,000 in 2020[137]. Assets and Liabilities - Total liabilities as of June 30, 2021, were RMB 202,194,000, a reduction of 34.0% from RMB 306,325,000 at the end of 2020[15]. - Net liabilities decreased by 30.2% to RMB 107,463,000, while total equity increased by 4.2% to RMB 251,224,000[15]. - As of June 30, 2021, the balance of pledged bank deposits and cash and cash equivalents amounted to approximately RMB94.7 million, a decrease of approximately RMB57.7 million from approximately RMB152.4 million as of December 31, 2020[61]. - The Group's cash and cash equivalents amounted to approximately RMB71 million as of June 30, 2021, an increase of approximately RMB32 million from approximately RMB39 million as of June 30, 2020, mainly due to net proceeds from listing[66]. - The Group's interest-bearing bank and other borrowings amounted to RMB46.3 million as of June 30, 2021, a decrease of approximately RMB47.3 million from approximately RMB93.6 million as of December 31, 2020[61]. - Trade receivables as of June 30, 2021, were RMB 153,219,000, down 30.9% from RMB 221,565,000 at the end of 2020[186]. - The total trade and other receivables as of June 30, 2021, amounted to RMB 220,258,000, down 20.2% from RMB 275,965,000 at the end of 2020[184]. - Current assets decreased to RMB 351,835,000 from RMB 444,930,000, a reduction of 21.0%[139]. - Non-current assets amounted to RMB 101,583,000, slightly down from RMB 102,496,000 at the end of 2020[139]. Market and Business Development - The company has established a mature business network in North China, East China, and South China, focusing on wind power pitch control systems and energy storage[16]. - The energy storage market is expected to become a trillion RMB industry, presenting significant growth opportunities for the company[18]. - The Group's pitch control system business expanded to cover five of the ten largest wind turbine manufacturers in China, including new customers such as Sany Group and Sinovel[22]. - The Group plans to maintain and enhance its market position in the pitch control system market and increase market share through customer diversification[30]. - The Group aims to strengthen its R&D capabilities by expanding its technical team and developing high-efficiency pitch products, including 8 MW and 12 MW models[31]. - The Group is actively developing its smart energy business, including the construction of a 4 MW wind power storage demonstration project at Duolun Wind Farm[32]. - The Group's strategy includes leveraging advanced technologies such as big data and artificial intelligence for integrated energy service projects[27]. - The Group plans to invest RMB31.3 million into the development of a new distributed wind farm in Lingqiu, Shanxi, from July 1, 2021, to December 31, 2021[91]. - The Group aims to recruit 70 additional service personnel to expand wind farm operation and maintenance services, with an estimated cost of RMB3.6 million from July 1, 2021, to June 30, 2022[93]. - The Group intends to strengthen R&D capabilities to enhance pitch control systems, with an estimated investment of RMB10.9 million from July 1, 2021, to December 31, 2022[93]. Shareholder Information - As of June 30, 2021, Mr. Cheng Liquan Richard holds 187,500,000 Shares, representing 75% of the total shareholding[115]. - The total number of issued shares is 250,000,000[128]. - The Company has adopted a Share Option Scheme allowing the grant of options to Eligible Participants, including full-time employees and directors, as incentives for their contributions[110]. - No share options have been granted under the Share Option Scheme since its adoption up to the date of the interim report[112]. - The amount payable by the grantee to the Company upon acceptance of the offer is RMB1.00[111]. - The options granted are exercisable for a period not exceeding ten years from the offer date[111]. - The total number of Shares issued upon exercise of options in any 12-month period shall not exceed 1% of the Shares without separate shareholder approval[111]. Cash Flow and Financing Activities - For the six months ended June 30, 2021, net cash generated from operating activities was RMB 8,638,000, a decrease of 59.4% compared to RMB 21,321,000 in 2020[144]. - Net cash used in investing activities amounted to RMB 6,952,000, significantly higher than RMB 1,363,000 in the same period of 2020[144]. - Net cash used in financing activities was RMB 51,109,000, compared to RMB 16,438,000 in the previous year, indicating a substantial increase in financing outflows[144]. - The company reported a total cash decrease of RMB 49,423,000 during the first half of 2021, contrasting with a cash increase of RMB 3,520,000 in the same period of 2020[144]. - The Group's financial risk management includes strengthening accounts receivable management and monitoring cash flow dynamics[81]. - The Group has not entered into any forward foreign exchange contracts to hedge foreign exchange risk but will monitor and adopt measures to mitigate such risks[83]. Compliance and Governance - The audit committee consists of three independent non-executive directors[127]. - The company complies with the CG Code in establishing its audit committee[127]. - The company has not been notified of any other substantial shareholders with interests in shares as of June 30, 2021[126]. - There were no interests or short positions in shares reported by directors or chief executives as of June 30, 2021[121].

Financial Performance - The company achieved a revenue of RMB 338.9 million in 2020, representing a 52.1% increase compared to RMB 222.8 million in 2019[11]. - Gross profit for 2020 was RMB 73.6 million, with a gross margin of 21.8%, down from 29.8% in 2019[11]. - Net profit attributable to shareholders decreased by 5.6% to RMB 40.2 million, with earnings per share of RMB 0.201[11]. - Cash and cash equivalents increased significantly by 260.8% to RMB 152.4 million, while total debt rose by 55.1% to RMB 306.3 million[12]. - The company's sales cost for 2020 was approximately RMB 265.3 million, a 69.6% increase from RMB 156.4 million in 2019, mainly due to changes in sales models and increased business orders[24]. - The group's gross profit increased from approximately RMB 66.4 million in 2019 to approximately RMB 73.6 million in 2020, representing a growth of about 10.8%[25]. - The overall gross profit margin decreased from 29.8% in 2019 to 21.8% in 2020, primarily due to the increased proportion of the variable pitch control system business, which has a lower gross margin[25]. - Net profit for the group in 2020 was approximately RMB 40.4 million, a decrease of about RMB 2.3 million or 5.4% from RMB 42.7 million in 2019[32]. - The asset-liability ratio improved significantly from 89.2% in 2019 to 41.4% in 2020, primarily due to funds raised from the IPO and repayment of bank loans[30]. Business Development - The company maintained a strong financial position, supporting existing orders and new business development[13]. - The company expanded its customer base, adding leading clients such as CRRC Group and SANY Group, ensuring long-term market share stability[13]. - The company plans to establish a wholly-owned subsidiary in Shenzhen to focus on new energy business development opportunities[20]. - The company aims to maintain and strengthen its market position in the blade control system sector and expand its customer base to ensure leadership in the high-voltage blade control system market in China[19]. - The company will enhance its R&D capabilities to enrich its solution offerings, including the development of high-power blade products such as 8 MW and 12 MW models[19]. - The company plans to expand its customer base for pitch control systems through increased marketing efforts, with an initial budget of RMB 3.4 million[48]. Operational Performance - The company delivered 1,704 sets of blade control systems in 2020, a 42.2% increase from the previous year, covering models ranging from 2 MW to 5 MW[16]. - The revenue from the blade control system business in 2020 was approximately RMB 283.8 million, representing a growth of about RMB 103.5 million or 57.4% compared to 2019, driven by changes in sales models and increased order volumes[22]. - The revenue from wind farm operation and maintenance services increased from approximately RMB 19.8 million in 2019 to about RMB 34.8 million in 2020, a growth of approximately 75.8% due to increased orders for consumables[23]. - The annual wind power generation from the company's Inner Mongolia Dulun Wind Farm in 2020 was 51.61 million kWh, with an operational usage of 2,647 hours[17]. - The company operates a wind farm in Inner Mongolia with a total installed capacity of 19.5 MW, contributing to its operational services[8]. Risk Management - The company faced significant risks including policy uncertainty affecting the wind power industry in China, which could impact demand for pitch control systems and wind power solutions[41]. - The company implemented strict cash management and credit policies to mitigate financial risks associated with cash flow and accounts receivable[42]. - The company believes that its business remains sustainable despite customer concentration risks, citing a stable relationship with Envision Group and diversification in its customer base[43]. Corporate Governance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules, ensuring compliance since the listing date until December 31, 2020[66]. - The board of directors consists of 7 members, including 2 executive directors, 3 non-executive directors, and 2 independent non-executive directors, maintaining a balance of expertise and independence[67]. - The company has implemented appropriate liability insurance for directors and senior management to cover any legal claims arising from corporate activities[75]. - The board has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with defined responsibilities[77]. - The Audit Committee, composed of three independent non-executive directors, is responsible for reviewing financial information and overseeing risk management and internal control systems[78]. Environmental, Social, and Governance (ESG) - China Naxian Energy Technology Holdings Limited released its first ESG report for the year 2020, focusing on corporate social responsibility and sustainability issues[96]. - The report adheres to the Hong Kong Stock Exchange's ESG reporting guidelines, ensuring the reliability and accuracy of the disclosed information[98]. - The company emphasizes a commitment to "green manufacturing and green development," aiming to become a trusted renewable energy equipment manufacturer[101]. - The company identified 19 key ESG issues based on its business characteristics and stakeholder importance, prioritizing those with significant economic, environmental, and social impacts[108]. - The report highlights the company's commitment to employee rights, health, safety, and community service, aiming to create shared value for society[101]. Employee and Community Engagement - The company actively promotes community service and development, positioning itself as a responsible corporate citizen[111]. - Charitable donations amounted to 50,000 yuan in 2020, compared to 0 in 2019[139]. - The total number of suppliers increased from 10 in 2019 to 18 in 2020, with all suppliers evaluated meeting environmental, labor, and ethical standards[127]. - The employee labor contract signing and social insurance participation rate was 100% in 2020[128]. - The company has established a whistleblower protection system to safeguard the identities of those reporting corruption[110]. Innovation and Technology - In 2020, the company received 7 utility model patents and 6 software copyrights, enhancing its intellectual property portfolio[117]. - The company focuses on continuous innovation capabilities as part of its quality policy, aiming for high-quality product delivery[112]. - The company has implemented various environmental management systems, including ISO14001:2015 certification, to promote green manufacturing[140]. Financial Management - The company has no predetermined dividend payout ratio, and future dividends will depend on the board's discretion based on operational performance, cash flow, and financial condition[90]. - The company has complied with all relevant laws and regulations in all material aspects as of December 31, 2020[177]. - The company has not engaged in any significant investments, acquisitions, or disposals during the year ended December 31, 2020[182].