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].