Economic Overview - In 1HY2023, China's GDP reached RMB 59.3 trillion, with a year-on-year growth of 5.5% at constant prices[10]. - National fixed asset investment (excluding rural households) increased by 3.8% year-on-year to RMB 24.3 trillion in 1HY2023[10]. - Net exports of goods and services negatively impacted the economy by 0.6 percentage points in 1HY2023, reflecting a challenging external economic environment[10]. - The international financial situation was volatile in 1HY2023, with multiple uncertainties affecting global economic growth and commodity consumption demand[10]. - The overall economic recovery in China is ongoing, with gradual improvements in production demand and stable employment[10]. - The business environment remains challenging, with insufficient market demand affecting enterprises[10]. - China's economy is projected to grow by 5.2% in 2023 and 4.5% in 2024, indicating a positive trend that may benefit the Group's performance[38]. Digital Economy and Technology - The digital economy's share in GDP of major countries is expected to reach 54% by 2026, with China's digital transformation technology spending projected to increase by over 16% in 2023[14]. - The digital economy is recognized as a new engine for global economic development, significantly impacting the power industry[14]. - The Group's in-house big data platform "Cloud Smart" has been widely adopted, enhancing the intelligence of distribution networks and meeting the market demand for advanced research in active distribution network planning[26]. - The rapid growth of emerging industries like AI is expected to drive a more than 10-fold increase in computational demand within the next three years[39]. Energy and Infrastructure - National electricity consumption from January to June 2023 reached 4.3076 trillion kilowatt-hours, a year-on-year increase of 5.0%[17]. - By the end of June 2023, the cumulative installed capacity of power generation in China was approximately 2.71 billion kilowatts, reflecting a year-on-year increase of 10.8%[17]. - The State Grid Corporation of China plans to invest over RMB520 billion in 2023, focusing on digital transformation and ultra-high voltage projects[17]. - China Southern Power Grid Co., Ltd. announced an expected project investment exceeding RMB260 billion for power grid construction and digital industry development in 2023[17]. - The government plans to invest over RMB3 trillion in the power grid during the 14th Five-Year Plan, a 10.5% increase compared to the previous plan, which will drive the development of the smart grid market[44]. - The total planned investment by the State Grid and Southern Grid during the 14th Five-Year Plan period exceeds RMB 3 trillion, with a year-on-year growth of 10.5%[46]. - The State Grid plans to invest RMB 350 billion primarily in UHV transmission line construction, while Southern Grid plans to invest RMB 670 billion, focusing on digitalization and modernization of the grid[46]. Company Financial Performance - In 1HY2023, the Group's revenue decreased to RMB260.4 million, a year-on-year decline of 6.9% from RMB279.6 million in the same period of 2022[20]. - The gross profit margin increased to 29.1%, up 0.4 percentage points from 28.7% in 1HY2022, resulting in a gross profit of RMB75.7 million[20]. - The Group's profit from operations was RMB24.7 million, profit before taxation was RMB7.8 million, and profit for the period was RMB6.4 million, compared to RMB26.2 million, RMB10.9 million, and RMB8.7 million respectively in 1HY2022[20]. - The revenue of the IEM Solutions segment for the six months ended June 30, 2023, was RMB 187.9 million, a decrease of 6.8% compared to RMB 201.6 million for the same period in 2022, accounting for 72.1% of the Group's total revenue[55]. - The gross profit of the IEM Solutions segment was RMB 56.6 million, representing a decrease of 1.3% from RMB 57.3 million in the same period of 2022, with a gross profit margin increase from 28.4% to 30.1%[55][56]. - The revenue of the CSP Business segment for the six months ended June 30, 2023, was RMB 72.6 million, a decrease of 7.0% compared to RMB 78.0 million for the same period in 2022, accounting for 27.9% of the Group's total revenue[61]. - The gross profit for the CSP Business segment decreased to RMB 19.2 million, down 16.2% from RMB 22.8 million in the same period in 2022, with a gross profit margin declining from 29.2% to 26.3%[62][67]. Operational Efficiency and Cost Management - The Group has maintained positive operating cash flow for seven and a half consecutive years, ensuring a stable asset-liability structure[21]. - The Group will adopt a cautious and flexible business strategy to achieve cost reduction and efficiency enhancement while maintaining a healthy debt structure and cash flow level[50][52]. - Selling and distribution expenses rose to RMB 30.6 million, an increase of RMB 1.2 million compared to RMB 29.4 million in the same period in 2022, representing 11.8% of revenue[64][69]. - Administrative and other operating expenses increased to RMB 40.9 million, up RMB 1.7 million from RMB 39.2 million in the same period in 2022, accounting for 15.7% of revenue[65][70]. - Finance costs for the six months ended June 30, 2023, were RMB 16.8 million, an increase from RMB 15.3 million in the same period in 2022, mainly due to increased use of bills payable[66][71]. - Average inventory turnover days decreased by 18 days from 142 days to 124 days during the six months ended 30 June 2023[83]. - Average trade receivables turnover days increased by 26 days from 377 days to 403 days, mainly due to a decrease in revenue during the period[83]. - Average trade payables turnover days increased by 137 days from 491 days to 628 days, primarily due to increased use of bills payable[83]. Corporate Governance and Compliance - The company emphasizes transparency, accountability, and independence in its corporate governance practices[129]. - The company has complied with most provisions of the Corporate Governance Code, except for the separation of the roles of Chairman and Chief Executive Officer[130]. - The Audit Committee consists of three Independent Non-executive Directors and has reviewed the unaudited interim financial information for the six months ended June 30, 2023[135]. - All directors confirmed compliance with the Model Code for securities transactions during the six months ended June 30, 2023[134]. - The company is committed to maintaining good corporate governance to enhance shareholder value[129]. Market and Business Strategy - The Group continues to focus on industries such as communication and data centers, rail transit, and sewage treatment, despite challenges in the macroeconomic environment[20]. - The Group aims to provide high-end, customized intelligent and energy-saving power management solutions for clients across various industries[26]. - The Group's "One-Stop Data Centre Solution" has led to an increasing market share and substantial profits in the data center distribution market[30]. - The Group's overseas business has shown improved performance, with a stable presence in the market and a focus on mitigating risks while seizing valuable opportunities[35]. - The Group is focused on enhancing core competitiveness and expanding market share to ensure sustainable profit growth[38]. - The Group aims to leverage its big data platform "Cloud Smart" to meet the growing power demands and solidify its leading position in the industry[39]. - The Group has maintained stable partnerships with major enterprises and global leaders, providing customized energy-efficient system solutions to help clients reduce costs and increase efficiency[36]. Human Resources and Employment - The Group had 661 employees as of 30 June 2023, an increase from 659 employees a year earlier[97]. - Total staff costs for the period were RMB 38.7 million, down from RMB 41.2 million for the six months ended 30 June 2022[97].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全 部或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 BOER POWER HOLDINGS LIMITED 博 耳 電 力 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） 1685 （股份代號： ） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 的 中 期 業 績 公 告 博耳電力控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司 及其附屬公司（統稱「本集團」）截至二零二三年六月三十日止六個月的未經審 核中期業績。本公告列載本公司二零二三年中期報告全文，並符合香港聯合交 易所有限公司證券上市規則中有關中期業績初步公告附載的資料的要求。 Contents目錄 2 CORPORATE INFORMATION 28 CONDENSED CONSOLIDATED CASH 公司資料 FLOW STATEMENT 簡明綜合現金流量表 4 MANAGEMENT DISCUSSION AND ANALYSIS 29 NO ...

Financial Performance - In 2022, the company's revenue was RMB 626,624,000, an increase of 9.4% compared to RMB 572,643,000 in 2021[13]. - The profit before taxation for 2022 was RMB 32,088,000, a decrease of 66.8% from RMB 96,676,000 in 2021[13]. - The profit for the year attributable to equity shareholders was RMB 30,231,000, compared to RMB 12,142,000 in 2021, marking a significant increase[13]. - The gross profit margin for the year was 29.2%, with a gross profit of RMB 183.1 million[19]. - Profit for the year grew by 141.5%, amounting to RMB 30.1 million, compared to RMB 12.5 million in 2021[19]. - Excluding a one-off gain of RMB 94.0 million from the disposal of subsidiaries in 2021, profit from operations and profit before taxation increased by 98.7% and 1,101.8% year-on-year respectively[19]. - The Group's profit for the year was RMB 30.1 million, up from RMB 12.5 million in 2021, attributed to increased revenue and cost control measures[102][106]. Asset and Liability Management - Non-current assets totaled RMB 395,404,000 in 2022, up from RMB 364,695,000 in 2021, indicating a growth of 8.5%[13]. - Current assets increased slightly to RMB 979,717,000 from RMB 966,352,000 in 2021, reflecting a growth of 1.4%[13]. - The company's net assets rose to RMB 289,254,000 in 2022, compared to RMB 267,365,000 in 2021, representing an increase of 8.5%[13]. - As of December 31, 2022, total assets were RMB 1,375.1 million, an increase from RMB 1,331.0 million in 2021, while total liabilities rose to RMB 1,085.9 million from RMB 1,063.7 million[103][107]. - The Group's borrowings decreased to RMB 437.7 million from RMB 508.1 million, with a debt-to-equity ratio of 151.3%, down from 190.0%[108]. Market and Economic Context - The Chinese economy's GDP grew by 3.0% year-on-year, surpassing RMB 120 trillion, which provided a positive backdrop for the company's performance[16]. - Fixed asset investment in China increased by 5.1% year-on-year, amounting to approximately RMB 57.2 trillion, contributing to the overall economic recovery[16]. - China's GDP exceeded RMB 120 trillion in 2022, representing a year-on-year increase of 3.0%, surpassing market expectations[38]. - Infrastructure investment in China increased by 9.4% year-on-year in 2022, marking the first rebound in growth rate since the end of double-digit growth in 2018[38]. Strategic Initiatives and Innovations - The Group has developed a "One-stop Data Centre Solution" to meet the increasing needs of data centre customers, contributing to a steady increase in market share[24]. - The Group plans to leverage opportunities in intelligent power grid, communication and data centers, rail transit, and wastewater treatment industries to enhance its market presence[33]. - The Group aims to continuously improve technology and product quality to strengthen its core competitiveness and profitability[33]. - The Group is focusing on modern communication and Internet technology to develop one-stop IEM Solutions for intelligent power distribution[51]. - The Group aims to enhance performance management capabilities for customers through its "Cloud Smart" big data platform[51]. Customer and Market Relationships - The Group's clients include top Fortune Global 500 companies, establishing long-term and stable relationships in the market[29]. - The Group is actively pursuing new customer bases and innovative practices to capitalize on the recovery of domestic and overseas markets[33]. - The Group's focus on digital transformation and innovative breakthroughs in power distribution technology has attracted numerous target customers in the data center industry[54][56]. - The Group's long-term partnerships with major domestic and international companies have solidified its reputation in the high-end market[61]. Operational Efficiency and Cost Management - The company focused on cost reduction and efficiency improvement through refined management practices during the challenging macroeconomic environment[16]. - Selling and distribution expenses decreased by 18.1% to RMB 58.5 million from RMB 71.5 million in 2021, accounting for 9.3% of total revenue[93]. - Administrative and other operating expenses increased slightly to RMB 80.9 million from RMB 80.3 million in 2021, representing 12.9% of total revenue[94][99]. - The Group's profitability has been positively impacted by favorable national policies supporting infrastructure projects[58]. Sustainability and Environmental Initiatives - The Group emphasizes environmental sustainability by managing energy consumption and water usage, including the establishment of self-distributed photovoltaic power plants[140]. - Policies have been implemented to encourage employees to save energy, aiming to reduce resource consumption and costs while benefiting the environment[141]. Management and Governance - The Group has a diverse management team with extensive experience in electrical distribution and power systems[161]. - The company emphasizes the importance of good corporate governance, focusing on transparency, accountability, and independence to enhance shareholder value[200]. - The Board emphasizes compliance with legal and regulatory requirements, ensuring that all transactions are within the applicable legal framework[144].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全 部或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 BOER POWER HOLDINGS LIMITED 博 耳 電 力 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） 1685 （股份代號： ） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 的 全 年 業 績 公 告 博耳電力控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司 及其附屬公司（統稱「本集團」）截至二零二二年十二月三十一日止年度經審核 的綜合業績，該等業績已由本公司核數師審計，並經本公司審計委員會審閱。 本公告列載本公司二零二二年年報全文，並符合香港聯合交易所有限公司（「香 港聯交所」）證券上市規則中有關全年業績初步公告所附載資料之要求。 CONTENTS 目錄 2 Corporate Information 79 Consolidated Statement of Profit or Loss and 公司資料 Other Compr ...

Economic Overview - In the first half of 2022, the global GDP growth was 2.5%, approximately 0.4 percentage points below market estimates[7]. - The ongoing geopolitical conflicts and high raw material prices have contributed to a sluggish global macroeconomic environment[7]. - The tightening of monetary policies by central banks globally has added pressure to economic growth[7]. - The International Monetary Fund (IMF) has revised the global growth outlook for 2022 down to 3.6% from 4.4%, significantly lower than last year's 6.1%[31]. China's Economic Indicators - China's fixed asset investment (excluding farmers) reached approximately RMB 27,143 billion, representing a year-on-year increase of 6.1%[7]. - Investment in infrastructure in China recorded a year-on-year increase of 7.1%, driven by accelerated infrastructure construction[7]. - In the first half of 2022, China's total electricity consumption reached 4,097.7 billion kWh, a year-on-year increase of 2.9%[12]. - The national installed power generation capacity increased to approximately 2.44 billion kW, representing a year-on-year growth of 8.1%[12]. - The production and sales of new energy vehicles in China reached 2.661 million units and 2.60 million units in 2022, representing a year-on-year increase of 120% with a market penetration rate of 21.6%[39]. Group Financial Performance - The Group's revenue for the first half of 2022 was RMB 279.6 million, a year-on-year increase of 2.6%[16]. - The Group's gross profit margin was 28.7%, down 5.6 percentage points from 34.3% in the same period last year[16]. - The Group's profit from operations increased to RMB 26.2 million, representing a year-on-year growth of 19.5%[16]. - Profit before taxation rose to RMB 10.9 million, a significant increase of 94.1% year-on-year[16]. - Profit for the period reached RMB 10.7 million, marking a year-on-year increase of 104.1%[16]. - The Group's cost-saving measures have led to a decrease in expenses year-on-year during the first half of 2022[16]. Group's Strategic Focus - The Group aims to empower innovative infrastructures through the application of green and low carbon technologies[8]. - The Group is focused on providing highly efficient computing services by leveraging secure and reliable skills, supporting various industries[8]. - The Group aims to provide intelligent power solutions for various infrastructure projects, including urban rail transit and sewage treatment, in response to the growing demand driven by urbanization[24]. - The Group aims to achieve growth in sales and profit for the year 2022 after netting off non-recurring gains and losses, leveraging its technological edge in intelligent power management[33]. - The Group plans to develop one-stop intelligent power integrated management solutions, enhancing customer performance management through its "Cloud Smart" big data platform[34]. Market Position and Customer Relationships - The Group has established stable long-term relationships with numerous Top 500 companies and large-scale international enterprises, contributing to a steady income stream[25]. - The Group's intelligent power management solutions have been widely recognized in the market, ranking top in market share in high-end markets[25]. - The Group's orders from long-term medium and large customers have gradually increased, providing stable revenue during the period[27]. - The Group has leveraged its strong brand power to generate considerable revenue during the period, capitalizing on opportunities arising from the development of the digital economy[22]. Operational Efficiency and Cost Management - The Group has maintained positive operating cash flows for six and a half consecutive years, while optimizing its debt structure and reducing borrowings[18]. - The Group's focus on energy conservation and efficiency has led to the customization of system solutions based on customer needs, enhancing its market presence[25]. - The Group's efforts in improving the power consumption database of various industries have achieved remarkable results, further solidifying its competitive advantage[22]. - The Group will continue to implement strict internal control systems and enhance refined management to optimize its asset-liability structure and improve profitability[44]. Financial Position and Cash Flow - As of June 30, 2022, the Group's total assets were RMB 1,407.0 million, an increase from RMB 1,331.0 million as of December 31, 2021[60]. - The Group's total liabilities amounted to RMB 1,134.7 million, up from RMB 1,063.7 million as of December 31, 2021[60]. - The Group's total equity increased to RMB 272.3 million from RMB 267.4 million as of December 31, 2021[60]. - Cash and cash equivalents decreased to RMB 39.6 million from RMB 77.7 million as of December 31, 2021[60]. - The Group's borrowings decreased to RMB 366.1 million from RMB 508.1 million as of December 31, 2021[60]. - The gearing ratio improved to 134.4% as of June 30, 2022, down from 190.0% as of December 31, 2021, primarily due to a reduction in total borrowings[60]. Shareholder Information and Corporate Governance - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2022[18]. - The company has three Independent Non-executive Directors on the Board, ensuring adequate independence and balance of power[89]. - The company has complied with most of the Corporate Governance Code provisions, with a noted deviation regarding the roles of Chairman and CEO being held by the same individual[89]. - The Group's issued and fully paid share capital remained at 773,769,000 shares as of June 30, 2022[175]. Related Party Transactions - The financial assistance from related parties includes loans granted for general working capital purposes, renewed in 2021[186]. - The total amount of loans from related parties as of June 30, 2022, included RMB500,000,000 and US$1,393,000, consistent with the previous year[189]. - The company continues to rely on related party financial support, which is crucial for its operational liquidity[187].

Financial Performance - In 2021, the company's revenue was RMB 572,643,000, a decrease of 30% compared to RMB 816,665,000 in 2020[16]. - Profit before taxation for the year was RMB 96,676,000, significantly up from RMB 42,846,000 in 2020, marking a year-on-year increase of 125.6%[16]. - The net profit for the year was RMB 12,461,000, compared to RMB 9,334,000 in 2020, reflecting a growth of 33.5%[17]. - The Group's revenue for the year was RMB 572.6 million, representing a year-on-year decrease of 29.9% due to unfavorable factors such as the global pandemic and delayed demand[22][24]. - Profit from operations amounted to RMB 124.1 million, a year-on-year increase of 57.5% compared to RMB 78.8 million in 2020[24][26]. - Profit for the year reached RMB 12.5 million, a year-on-year increase of 33.5% compared to RMB 9.3 million in 2020[24][26]. - The Group's revenue for the year exceeded RMB 114 trillion, representing an 8.1% year-on-year increase[50]. - The revenue of IEM Solutions for the year ended December 31, 2021, was RMB 409.2 million, a decrease of 36.5% compared to RMB 644.1 million in 2020, accounting for 71.5% of the Group's total revenue[97]. - The revenue of CSP Business for the year ended December 31, 2021, was RMB 163.4 million, down 5.3% from RMB 172.6 million in 2020, accounting for 28.5% of the Group's total revenue[105][109]. Assets and Liabilities - The company's total assets amounted to RMB 1,331,047,000, with current assets at RMB 966,352,000 and non-current assets at RMB 364,695,000[17]. - The total liabilities were RMB 1,063,682,000, with current liabilities of RMB 896,919,000 and non-current liabilities of RMB 166,763,000[17]. - The net assets of the company increased to RMB 267,365,000, up from RMB 198,141,000 in 2020, indicating a growth of 34.9%[17]. - As of December 31, 2021, total assets were RMB 1,331.0 million, down from RMB 1,478.1 million in 2020, while total liabilities decreased to RMB 1,063.7 million from RMB 1,280.0 million[117]. - The Group's cash and cash equivalents increased to RMB 77.7 million as of December 31, 2021, compared to RMB 39.9 million in 2020[119]. - The gearing ratio improved to 190.0% as of December 31, 2021, down from 294.6% in 2020, reflecting a decrease in total borrowings and an increase in total equity[119]. Market Trends and Economic Environment - The gross domestic product (GDP) of China exceeded RMB 114 trillion in 2021, with an increase of 8.1% year-on-year, showcasing the economic recovery[21]. - The fixed asset investment in China exceeded RMB 54 trillion, representing a year-on-year increase of 4.9%[21]. - The electricity consumption of data centers in China accounts for 2% of the national electricity consumption and is on an upward trend, presenting opportunities for the Group's "One-stop Data Center Solution"[32][34]. - The urban rail transit industry in China is expected to increase operating mileage by 3,000 kilometers during the "14th Five-Year Plan" period, indicating significant market potential for the Group's services[33]. - The digital economy in China is a key driver of economic growth, with the IDC market accounting for 10% of the global market share[51]. - The total global data volume is projected to increase from 33ZB in 2018 to 175ZB in 2025, indicating significant growth opportunities for the Group's services and products[79]. Strategic Initiatives and Operational Adjustments - The company has adjusted its operational strategies to increase income and reduce expenses, enhancing profitability amid external challenges[21]. - The Group maintained reasonable levels of trade receivables, trade and bills payables, and inventory, while finance costs continued to decrease[26][28]. - The Group is committed to providing diversified services and customized solutions for infrastructure construction, including intelligent power solutions for various projects[33]. - The Group aims to restore sales growth and improve profitability by optimizing its technologies, products, and services[40]. - The Group's strategic adjustments aim to maintain competitive pricing and high-quality service delivery amidst an uncertain economic environment[57]. - The Group plans to leverage opportunities in new infrastructure policies, particularly in data centers and rail transit, to enhance profitability and shareholder value[93][94]. Challenges and Risks - The ongoing pandemic and geopolitical uncertainties posed significant challenges to the Group's overseas infrastructure projects[39]. - The Group is exposed to various market risks, including interest rate risk, credit risk, and liquidity risk, as detailed in the financial statements[132]. - The Group's operations are subject to government approvals and compliance with environmental, health, and safety regulations, which are critical for operational continuity[137][142]. Governance and Compliance - The Group's governance structure includes independent non-executive directors, ensuring accountability and transparency in decision-making[161]. - The Company has complied with the Corporate Governance Code and has adopted the Model Code for Securities Transactions by Directors, confirming compliance by all Directors during the year ended December 31, 2021[192]. - The Company has established policies and practices to ensure compliance with legal and regulatory requirements, including the Corporate Governance Code[198]. Leadership and Management - The Group's Executive Directors have extensive experience in the electrical distribution systems and equipment industry, with key personnel having joined the company as early as 1995[153]. - The Group has a strong leadership team with diverse backgrounds in finance, operations, and compliance, enhancing its strategic capabilities[161]. - The management team has emphasized the importance of R&D, with plans to allocate F% of revenue towards innovation and product development[157]. - The management employs a cost leadership strategy and diversifies business strategies to maintain competitiveness against both multinational and domestic competitors[132].

Economic Indicators - In 1HY2021, China's fixed asset investment (excluding farmers) amounted to RMB 25,590 billion, representing a year-on-year increase of 12.6% and up 9.1% compared to the same period in 2020[9]. - National total electricity consumption reached 3,933.9 billion KWH in 1HY2021, marking a year-on-year increase of 16.2%, the highest growth rate in over a decade[9]. - Newly installed power generation capacity in China amounted to 51.87 million KW from January to June 2021, which is more than double the installed capacity of the Three Gorges Dam[9]. - In June 2021, total electricity consumption was 703.3 billion KWH, reflecting a year-on-year increase of 9.8%[9]. - The average growth rate of fixed asset investment over the past two years was 4.4%[9]. - The digital economy is driving significant changes in production and governance, increasing the demand for electricity[9]. - The COVID-19 pandemic continued to impact business activities, particularly due to upstream raw material shortages[9]. - The rollout and adoption of vaccines have brought stability to China's economy and society, aiding market recovery[9]. Company Financial Performance - The Group's revenue for the period was RMB 272.6 million, representing a year-on-year decrease of 20.5% compared to RMB 342.8 million in the same period last year[16]. - The gross profit margin increased by 4.6 percentage points year-on-year to 34.3%, with gross profit reaching RMB 93.5 million, a decrease of 8.0% from RMB 101.6 million[16]. - Profit from operations amounted to RMB 116.0 million, a significant year-on-year increase of 347.7% from RMB 25.9 million[16]. - Profit before taxation reached RMB 99.6 million, representing a year-on-year increase of 1,178.8% compared to RMB 7.8 million[16]. - Profit for the period was RMB 49.1 million, a year-on-year increase of 571.2% from RMB 7.3 million[16]. - The overall financial performance was impacted by reduced sales orders from overseas customers due to the pandemic[48]. - The Group recorded a one-off gain of RMB 94.0 million from the disposal of certain subsidiaries during the six months ended 30 June 2021, compared to nil in the same period of 2020[57]. - Profit for the six months ended 30 June 2021 was RMB 49.1 million, an increase from RMB 7.3 million in the same period of 2020, primarily due to the one-off gain from the disposal of subsidiaries[58]. Market and Industry Trends - The demand for intelligent power transmission and distribution equipment is on the rise as enterprises seek to enhance power consumption efficiency[9]. - The data center industry is characterized by high power consumption, presenting challenges for establishing a safe and energy-saving power supply system[14]. - The power consumption of data centers in China currently accounts for 2% of national power consumption, with a rising trend expected[20]. - The infrastructure expenditure for data centers worldwide is expected to reach US$200 billion in 2021, representing a 6% increase compared to 2020[34]. - The number of medium-to-large scale data centers in China is projected to exceed 80,000 by 2024, indicating a sustained growth trend in the data center market[34]. - The Group aims to leverage its 35 years of industry experience to secure more orders and expand its market share through long-term cooperation with top data center operators[34]. Company Strategy and Operations - The Group has maintained positive operating cash flows for the past five and a half years, with a significant improvement in its gearing structure due to the disposal of certain subsidiaries[16]. - The Group is focused on adopting advanced technology and a green approach to align with economic growth and new data center developments[9]. - The Group aims to enhance service quality and experience in response to opportunities arising from new infrastructure developments[23]. - The Group is committed to providing customized solutions for various infrastructure projects, including intelligent power solutions for buildings and transportation hubs[24]. - The Group's market share continues to grow due to its technology optimization efforts and strong service reputation in the data center power distribution market[20]. - The Group increased investment in R&D for its "Cloud+" offerings, aiming to provide high-end customized intelligent power management solutions[30]. - The Group plans to optimize its one-stop intelligent power integrated management system and product structure to promote business innovation and upgrade[42][44]. Financial Position and Assets - The Group's total assets as of 30 June 2021 were RMB 1,300.7 million, down from RMB 1,478.1 million as of 31 December 2020, while total liabilities decreased to RMB 1,010.8 million from RMB 1,280.0 million[58]. - The total equity of the Group increased to RMB 289.9 million as of 30 June 2021, up from RMB 198.1 million as of 31 December 2020[58]. - The Group's borrowings amounted to RMB 490.0 million as of 30 June 2021, a decrease from RMB 583.6 million as of 31 December 2020[58]. - The gearing ratio improved to 169.0% as of 30 June 2021, down from 294.6% as of 31 December 2020, due to a decrease in total borrowings and an increase in total equity[58]. - The average inventory turnover days increased by 43 days from 103 days in the six months ended June 30, 2020, to 146 days during the current period, primarily due to a decrease in cost of sales and an increase in inventories[60]. - The average trade receivables turnover days increased by 106 days from 245 days in the six months ended June 30, 2020, to 351 days during the current period, mainly due to a decrease in revenue[60]. Corporate Governance and Shareholder Information - The Company has three Independent Non-executive Directors on the Board, ensuring adequate independence and balance of power[91]. - The Audit Committee, consisting of three Independent Non-executive Directors, reviewed the unaudited interim financial information for the six months ended June 30, 2021[95]. - The Company emphasizes transparency, accountability, and independence in its corporate governance practices[89]. - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2021[68]. - The Group's remuneration policy aligns with current legislation, market conditions, and performance, reflecting a strategic approach to employee compensation[68]. - The expired share award scheme operated for 10 years and concluded on June 16, 2021, with no shares purchased for this scheme during the period[68]. Related Party Transactions - The company has related party transactions with controlling shareholders Mr. Qian Yixiang and Ms. Jia Lingxia, who each own 50% of King Able Limited, the immediate parent of the Group[17]. - Loans from related parties include RMB 500,000,000 and US$1,393,000 from Mr. Qian Yixiang and Ms. Jia Lingxia, reflecting substantial financial support from controlling shareholders[193]. - The company reported a significant increase in related party transactions, with specific transactions conducted at market prices as mutually agreed by the parties involved[199]. - The total amount of financial assistance from related parties was RMB 495,811,000 as of June 30, 2021, compared to RMB 478,199,000 as of December 31, 2020, showing an increase of approximately 3.4%[195].

Financial Performance - The Group's revenue for the year 2020 was RMB 816.7 million, representing a year-on-year increase of 10.8%[17] - Gross profit for the year was RMB 237.0 million, reflecting a year-on-year increase of 11.1%, with a stable gross profit margin of 29.0%[17] - Profit before taxation increased to RMB 42.8 million, compared to RMB 6.9 million in 2019[17] - Profit for the year amounted to RMB 9.3 million, up from RMB 5.7 million in the previous year[17] - Operating profit increased to RMB 78.8 million, up from RMB 49.4 million in the previous year, reflecting a significant improvement in operational efficiency[19] - The Group's profit for the year ended 31 December 2020 was RMB 9.3 million, an increase of 63.2% from RMB 5.7 million in 2019, primarily due to an 11.1% improvement in gross profit from RMB 213.3 million to RMB 237.0 million[105] Assets and Liabilities - Non-current assets were valued at RMB 541.5 million, while current assets totaled RMB 936.6 million[12] - Current liabilities stood at RMB (780.8) million, and non-current liabilities were RMB (499.2) million[12] - The net assets of the Group were RMB 198.1 million, with equity attributable to shareholders at RMB 261.2 million[12] - The Group's total assets as of 31 December 2020 were RMB 1,478.1 million, down from RMB 1,903.4 million in 2019, while total liabilities decreased from RMB 1,724.6 million to RMB 1,280.0 million[105] - As of 31 December 2020, the Group's borrowings amounted to RMB 583.6 million, down from RMB 743.8 million in 2019, with a gearing ratio of 294.6% compared to 416.0% in the previous year[105] Cash Flow and Financial Stability - The Group maintained positive operating cash flows for five consecutive years, indicating improved asset and liability structure[17] - The Group has maintained positive operating cash flow for five consecutive years, indicating improved financial stability[19] - The Group's operating cash flow has been positive for five consecutive years, with a decrease in financial costs by RMB 6.6 million year-on-year[75] - The Group aims to gradually boost its results while ensuring sound cash flow amidst the ongoing economic challenges[34] Market and Industry Trends - The national GDP for China in 2020 was RMB 101,598.6 billion, reflecting a growth of 2.3% despite the pandemic[16] - The number of urban rail transit routes in China increased by 39, with an additional operating mileage of 1,240.3 kilometers, marking a growth of 20.1% compared to last year[26] - The number of urban sewage treatment plants in China reached 2,679, with expectations for significant future growth, creating substantial business opportunities for the Group[26] - The ongoing pandemic has significantly impacted overseas project bidding and implementation, prompting the Group to adopt cautious operational and financial measures[30] - The global infrastructure expenditure for data centers is expected to reach USD 200 billion in 2021, a 6% increase from 2020[78] Strategic Development - The Group is focusing on the development of a "One-stop Data Center Solution," which has shown steady growth in market share amid increasing demand for new infrastructure projects[22] - The Group's financial and operational strategies have been adjusted to mitigate the impacts of the pandemic on overseas projects, ensuring prudent development in international markets[28] - The Group aims to provide customized intelligent, energy-conserving, and highly efficient system solutions, targeting both domestic and international large enterprises[55] - The Group plans to enhance refined management to control operational expenses while ensuring operational efficiency, aiming to improve profitability[87] Governance and Management - Qian Yixiang has been the Executive Director and CEO since February 12, 2010, responsible for overall management and strategic development of the Group[125] - The Board prioritizes compliance with legal and regulatory requirements, ensuring that all transactions are within applicable laws[120] - The company emphasizes compliance and internal governance, with dedicated roles for oversight in these areas[142] - The independent directors play a crucial role in ensuring transparency and accountability within the company's operations[135][138] Employee and Operational Efficiency - The Group places great emphasis on employee training and development, viewing excellent employees as a key factor in its competitiveness[112] - The total staff costs for the year ended December 31, 2020, were RMB 89.6 million, down from RMB 101.1 million in 2019, with the number of employees decreasing from 892 to 776[109] - The company recorded a year-on-year decrease of RMB 5.4 million in administrative and other operating expenses, excluding impairment losses on contract costs[68] Risks and Challenges - The Group is exposed to various market risks including interest rate risk, credit risk, and liquidity risk[114] - The bidding and new orders were negatively affected due to the pandemic, with a decrease in new orders compared to previous years[77] - The risk of losing key personnel is mitigated through regular reviews of recruitment, retention practices, and remuneration packages[114]

Economic Overview - In the first half of 2020, the total value of Sino-US trade amounted to RMB 1.64 trillion, representing a year-on-year decrease of 6.6%[21] - The trade surplus during the same period was RMB 851.74 billion, down by 10.8%[21] - China's GDP for the first half of 2020 was RMB 45,661.4 billion, reflecting a 6.8% decrease in the first quarter but a 3.2% increase in the second quarter[21] - The total value of domestic industrial production in the first half of 2020 was RMB14,504.4 billion, down by 1.8 percentage points year-on-year[26] - Fixed asset investment in China (excluding farmers) decreased by 3.1% year-on-year to RMB28,160.3 billion, with manufacturing investment down 11.7%[26] - The COVID-19 pandemic has established a macroeconomic environment characterized by low growth, low inflation, low interest rates, high debt, and high risk, which will persist for an extended period[59] - The second half of 2020 is expected to see a slow recovery in the global economy, with infrastructure investment in China providing a relatively stable growth support[61] Industry Performance - The electricity consumption of the data transfer, software, and digital technology services industry increased by 18.36% year-on-year, totaling 9.068 billion KWH[21] - Major power generation enterprises in China completed investments of RMB 173.8 billion in power supply works, up by 51.5% year-on-year[21] - The demand for smart power transmission and distribution equipment is anticipated to continue increasing due to the expansion of domestic smart grid construction[21] - The anticipated investment scale for the power IoT is expected to double to nearly RMB 50 billion in 2020, facilitating substantial growth in market demand for intelligent power distribution terminal equipment[34] - The wastewater treatment market is projected to have a remaining market space exceeding RMB129.8 billion in 2020, with long-term market potential reaching a trillion RMB[64] Company Financial Performance - The Group's revenue for the period reached RMB342.8 million, representing a year-on-year increase of 20.8%[31] - The gross profit margin improved to 29.7%, an increase of 2.6 percentage points year-on-year, with gross profit amounting to RMB101.6 million, up 32.1% year-on-year[31] - The Group achieved a profit of RMB7.3 million for the period, marking a turnaround from loss compared to the same period last year[31] - The Group maintained a positive EBITDA of RMB41.0 million during the period[31] - The Group recorded positive operating cash flows for four and a half consecutive years, with decreasing borrowings and finance costs[34] - The Group's total revenue for the period was significantly supported by proactive sales strategies that secured multiple large orders in the second half of 2019[47] - The Group's profit before taxation for the six months ended June 30, 2020, was impacted by various factors, but specific figures were not disclosed in the provided content[184] Investment and Growth Projections - The expected scale of data centers in China is projected to reach RMB320 billion by 2022, driven by the development of new infrastructure[25] - By 2025, the accumulated investment in 5G network construction in China is expected to reach RMB1.2 trillion, driving over RMB3.5 trillion in upstream and downstream investments[26] - Fixed asset investment on national railways is projected to reach RMB 800 billion in 2020, with RMB 325.8 billion already invested in the first half, a year-on-year increase of 1.2%[39] - Infrastructure investment growth in 2020 is estimated to exceed 10%, with a year-on-year growth of over 15% to nearly 20% in the second half of the year, supporting aggregate demand[64] Corporate Governance and Management - The company emphasizes good corporate governance, focusing on transparency, accountability, and independence to enhance shareholder value[120] - The Board believes that having one individual serve as both Chairman and CEO provides strong and consistent leadership for long-term business strategies[124] - The company has adopted the Model Code for Directors' securities transactions, with all directors confirming compliance during the six months ended June 30, 2020[128] - The Audit Committee consists of three members, all Independent Non-executive Directors, who reviewed the accounting principles and practices adopted by the Group for the six months ended June 30, 2020[129] Shareholder Information - The Share Option Scheme is valid for ten years from September 30, 2010, aimed at rewarding participants who contribute to the Group[84] - The total number of shares available for issue under the Share Option Scheme is 75,000,000, representing about 9.69% of the issued share capital of the Company[94] - The Share Award Scheme was approved on June 17, 2011, and aims to retain and attract suitable personnel for the Group's growth[95] - As of June 30, 2020, Mr. Qian Yixiang and Ms. Jia Lingxia each held 521,115,000 shares, representing 67.35% of the total issued shares[104][105] Operational Challenges - As of June 30, 2020, the Group had net current assets of RMB 34.8 million, while short-term bank borrowings amounted to RMB 661.6 million, indicating significant uncertainty regarding the Group's ability to continue as a going concern[73] - The Group's cash and cash equivalents as of June 30, 2020, were RMB14.3 million, with net current assets of RMB34.8 million[65] - The controlling shareholders have committed to provide ongoing financial support, including not recalling amounts due of RMB 383,897,000 until the Group can repay other creditors[161] Accounting and Compliance - The Group has early adopted the amendment to HKFRS 16 regarding COVID-19-related rent concessions effective from January 1, 2020[165] - The Group's accounting policies were not significantly impacted by the new or amended HKFRSs effective from January 1, 2020[164] - The Group continues to assess the evolving impact of COVID-19 on its operations and financial performance[167]

Financial Performance - The Group's revenue for 2019 was RMB 737,128,000, representing a year-on-year increase from RMB 628,235,000 in 2018[16] - The profit for the year was RMB 5,742,000, a turnaround from a loss of RMB 997,879,000 in 2018[16] - The revenue for the year reached RMB 737.1 million, representing a year-on-year increase of 17.3%[24] - Gross profit increased to RMB 213.3 million, reflecting a year-on-year growth of 6.4%[24] - The profit from operations turned positive at RMB 49.4 million, while the profit for the year was RMB 5.7 million[24] - The Group maintained a positive EBITDA of RMB 84.3 million during the year[24] - The profit attributable to equity shareholders for the year was RMB 3.5 million, a significant recovery from a loss of RMB 958.4 million in 2018[74] - Gross profit increased by 6.4% to RMB 213.3 million in 2019 from RMB 200.5 million in 2018, driven by higher revenue[74] Assets and Liabilities - Non-current assets decreased to RMB 603,732,000 from RMB 678,809,000 in 2018[16] - Current assets increased to RMB 1,299,679,000 compared to RMB 1,115,437,000 in 2018[16] - The net assets of the Group were RMB 178,809,000, down from RMB 189,086,000 in 2018[16] - The total assets of the Group as of December 31, 2019, were RMB 1,903.4 million, an increase from RMB 1,794.2 million in 2018[83] - The total liabilities increased to RMB 1,724.6 million in 2019 from RMB 1,605.2 million in 2018[83] - The Group's borrowings amounted to RMB 743.8 million, with a gearing ratio of 416.0% as of December 31, 2019, indicating an increase from 367.5% in the previous year[113] Market and Industry Trends - The overall market scale of the IDC business in China is estimated to reach nearly RMB 300 billion by 2021, with a rapid growth rate of 30% per annum[27] - The anticipated economic output driven by 5G commercial use in China from 2020 to 2025 is approximately RMB24.8 trillion[36] - The IDC market size in China reached RMB156.08 billion in 2019, reflecting a year-on-year growth of 27.1%, significantly above the global average of approximately 11%[92] - The scale of the IoT industry in China is expected to exceed RMB2 trillion by 2020, with IoT connections reaching 7 billion[98] - The cloud computing market in China is projected to reach RMB91 billion by 2020, with a compound annual growth rate of approximately 33%[98] Strategic Initiatives - Boer Power has developed a comprehensive one-stop power management services plan, enhancing its product and service offerings[20] - The Company aims to continue optimizing its "Cloud Smart" big data platform to provide more comprehensive services[20] - The Group aims to leverage its leading industry technology and strong reputation to capture market opportunities arising from the Belt and Road Initiative and emerging markets globally[33] - The Group is focused on providing intelligent power management solutions, capitalizing on opportunities arising from the Belt and Road initiative[31] - Boer Power aims to capitalize on new national policies to stabilize domestic investment, focusing on major projects in infrastructure segments such as data centers, 5G networks, industrial internet, and artificial intelligence[104] Operational Adjustments - The Group has actively adjusted its operations in response to the COVID-19 pandemic, resuming business fully by February 12, 2020[32] - The Group resumed business operations on February 12, 2020, after the COVID-19 pandemic, and was fully operational as of the date of the annual report[91] - The Group proactively adjusted production and delivery schedules to meet customer needs and minimize impacts from the pandemic[91] Research and Development - Boer Power continues to invest in R&D, optimizing the "Cloud Smart" data platform to maintain its technological advantages in intelligent power management[68] - The Group has developed a data center solution called Data House, which includes indoor and container outdoor applications, improving cooling efficiency with a PUE as low as 1.5[99] Governance and Compliance - The Group emphasizes compliance with legal and regulatory requirements, ensuring adherence to the Companies Ordinance and Listing Rules, with no significant compliance issues reported for the year ended December 31, 2019[134] - The Company has complied with the Corporate Governance Code during the financial year ended December 31, 2019, except for deviations from code provision A.2.1[182] - The Group engaged an external independent consultant to assess the effectiveness of its risk management and internal control systems annually[191] Management and Leadership - The Group's executive team includes experienced members, such as Qian Yixiang, who has been with the company since 1995 and is responsible for overall management and strategic development[139] - The Group's management team is focused on enhancing operational efficiency and strategic growth in the electrical distribution systems and equipment industry[139] - The management team collectively brings decades of experience in their respective fields, contributing to the Group's growth and market expansion strategies[168]