（股份代號：1853） 主要及關連交易 有關收購資產的補充協議 茲 提 述 吉 林 省 春 城 熱 力 股 份 有 限 公 司（「 本 公 司 」）日 期 為 2025 年 6 月 16 日 及 2025年7月25日的公告（「該等公告」），內容有關（ 其中包括 ）本集團向控股股 東集團收購若干熱力生產資產。除文義另有所指外，本公告所用詞彙與該等 公告所界定者具有相同涵義。 補充協議 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 之 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。 Jilin Province Chuncheng Heating Company Limited * 吉 林 省 春 城 熱 力 股 份 有 限 公 司 （ 於中華人民共和國註冊成立的股份有限公司） 由於目標資產一所涵蓋範圍已作修訂，本公司就建議收購事項一應付長熱集 團的總代價亦由人民幣166 ...

Financial Performance - The company's revenue for 2024 reached RMB 1,805.7 million, representing an increase of 6.6% compared to RMB 1,694.4 million in 2023[11] - Gross profit for 2024 was RMB 257.2 million, a decrease of 3.1% from RMB 265.9 million in 2023[11] - The pre-tax profit for 2024 was RMB 138.3 million, down 17.9% from RMB 168.5 million in 2023[11] - The net profit for 2024 was RMB 99.9 million, a decline of 17.5% compared to RMB 121.0 million in 2023[11] - The group's gross profit for 2024 was RMB 257.16 million, down 3.29% from RMB 265.89 million in 2023, with a gross margin of 14.24%, a decrease of 1.45% from 15.69% in 2023[55][57] - Other income and net other gains for 2024 were RMB 21.44 million, a decrease of 29.76% from RMB 30.52 million in 2023, mainly due to reduced interest income and government subsidies[45] - The group's net profit for 2024 was RMB 99.90 million, a decrease of 17.41% from RMB 120.96 million in 2023, attributed to an increase in deductible temporary differences[62][63] Assets and Liabilities - Total non-current assets as of December 31, 2024, were RMB 1,069.0 million, slightly up from RMB 1,064.5 million in 2023[12] - Total current assets increased significantly to RMB 2,676.8 million in 2024 from RMB 1,942.1 million in 2023, marking a growth of 37.8%[12] - The company's net assets reached RMB 1,043.2 million in 2024, an increase of 5.4% from RMB 989.8 million in 2023[12] - As of December 31, 2024, the group held cash and cash equivalents of RMB 1,449.17 million, a 30.43% increase from RMB 1,111.04 million in 2023, due to increased net cash flow from operating activities and financing activities[64] - The group reported bank borrowings and other borrowings of RMB 615,550,000 as of December 31, 2024, compared to zero as of December 31, 2023[129] Heating Business Operations - The heating service area provided by the company covers approximately 69.76 million square meters, serving around 570,000 residents and non-residential users in Changchun[7] - The heating area increased to 69.762 million square meters, a growth of 3.94% compared to 2023[20] - The number of heating customers rose to 572,058, reflecting a growth of 3.72% from 2023[20] - Heating business revenue reached RMB 1,615.31 million, an increase of RMB 44.59 million or 2.84% from the previous year[20] - The group procured a total of 22.04 million GJ of heating resources, with 19.9 million GJ used for heating production[26] - The utilization rate of purchased heating resources was 86.90%, down from 88.51% in 2023[29] - The group continues to focus on clean heating models, enhancing heating security capabilities to meet the demands of new heating area loads[25] Technological Innovation - The company has established a smart heating network system recognized as a leading system in the industry, enhancing service levels through the application of "Internet + heating" production models[8] - The company is leveraging advanced technologies such as IoT, big data, and AI to optimize heating system management and improve energy efficiency[18] - The company developed a "Heat Exchanger Efficiency Evaluation System" to improve thermal energy efficiency, which is now operational[38] - The group is actively promoting technological innovation and equipment upgrades in the heating industry through government policies and incentives[19] Capital Expenditures and Investments - Capital expenditures for 2024 were RMB 124.45 million, a significant increase of 326.78% from RMB 29.16 million in 2023, primarily due to increased procurement of fixed assets[65] - The group did not engage in any significant investments during the year ended December 31, 2024[73] Shareholder Information and Dividends - The board has approved a dividend policy to distribute at least 30% of the annual distributable net profit to shareholders, subject to certain conditions[110] - The proposed final dividend for the year ending December 31, 2024, is RMB 0.065 per share, totaling approximately RMB 30.34 million, compared to RMB 42 million in 2023[114] - The company will withhold a 10% corporate income tax for non-resident H-share shareholders when distributing the final dividend[115] - The company's distributable reserves as of December 31, 2024, amount to approximately RMB 352.91 million, an increase from RMB 335.82 million as of December 31, 2023[127] Corporate Governance and Management - The company has maintained compliance with corporate governance codes, ensuring high standards of governance throughout the reporting period[191] - The company has confirmed that all ongoing related party transactions did not exceed the annual value limits set by the company[192] - Independent non-executive directors have reviewed and confirmed that all ongoing related party transactions were conducted under fair terms and in the overall interest of shareholders[186] - The company has taken measures to ensure management independence, including provisions in the articles of association to avoid conflicts of interest[151] Employee Information - The total number of employees as of December 31, 2024, was 1,595, all based in China[79] - The company has implemented a competitive compensation structure and provides various training opportunities for employees[197] Related Party Transactions - The asset transfer agreements constitute related party transactions due to Changre Group's significant shareholding[162] - Long Heat Group, holding approximately 69.75% of the company's total equity, is a related party and has not drawn any loans under the loan agreement as of December 31, 2024, with a total amount provided to Long Heat Group being RMB 206 million[171] Future Outlook - The company aims to deepen reforms and continue to contribute to the development of the clean energy heating industry, aligning with industry trends[9] - The group aims to enhance its competitiveness and brand influence by focusing on energy efficiency and sustainable innovation in line with national policies[82] - The company plans to optimize its energy structure and management systems to achieve sustainable development in its heating business[83] - The group will accelerate digital transformation using big data and AI to improve management and energy efficiency[84]

Financial Performance - For the year ending December 31, 2024, the company's revenue was RMB 1,805.70 million, an increase of 6.57% compared to the same period in 2023[5] - The company's profit before tax for the year ending December 31, 2024, was RMB 138.32 million, a decrease of 17.90% compared to the same period in 2023[5] - The net profit attributable to equity holders for the year ending December 31, 2024, was RMB 99.90 million, a decrease of 17.41% compared to the same period in 2023[5] - The earnings per share for the year ending December 31, 2024, was RMB 0.21, a decrease of RMB 0.05 compared to the same period in 2023[5] - The company's operating profit for the year ending December 31, 2024, was RMB 138.14 million, down from RMB 169.76 million in 2023[10] - The company's total profit for the year ending December 31, 2024, was RMB 138.32 million, compared to RMB 168.47 million in 2023[10] - Total comprehensive income for 2024 is CNY 95,322,160.72, down from CNY 119,955,527.33 in 2023, reflecting a decline of 20.7%[12] - Basic and diluted earnings per share for 2024 are both CNY 0.21, compared to CNY 0.26 in 2023, indicating a decrease of 19.2%[12] - The total profit for 2024 was RMB 138.32 million, down from RMB 168.47 million in 2023, indicating a decrease of 17.88%[27] - The company reported a net profit of RMB 99.90 million for 2024, a decrease of 17.41% from RMB 120.96 million in 2023[62][63] Revenue Breakdown - Revenue from heating services for 2024 is CNY 1,621,633,563.59, an increase from CNY 1,576,503,226.62 in 2023, representing a growth of 2.9%[22] - Revenue from construction, maintenance, and design services for 2024 is CNY 288,068,570.10, up from CNY 212,285,644.28 in 2023, showing a growth of 35.6%[22] - Total revenue for 2024 is CNY 1,909,702,133.69, compared to CNY 1,788,788,870.90 in 2023, marking an increase of 6.7%[22] - The total revenue for 2024 reached RMB 1,805.70 million, an increase from RMB 1,694.42 million in 2023, representing a growth of 6.56%[27] Assets and Liabilities - The total current assets as of December 31, 2024, amounted to RMB 2,676.80 million, an increase from RMB 1,942.10 million as of December 31, 2023[6] - The total liabilities as of December 31, 2024, were RMB 2,578.97 million, compared to RMB 1,901.71 million as of December 31, 2023[8] - The total assets as of December 31, 2024, were RMB 3,745.84 million, an increase from RMB 3,006.59 million as of December 31, 2023[9] - The company's total assets as of December 31, 2024, amounted to RMB 3,745.84 million, with equity attributable to shareholders at RMB 1,043.16 million[34] Customer and Market Growth - The heating area served by the company increased to 69.76 million square meters, up by 3.94% from 67.12 million square meters in 2023[35] - The number of heating customers grew to 572,058, an increase of 3.72% from 551,558 customers in 2023[35] - As of December 31, 2024, the total number of customers reached 572,058, an increase from 551,558 in 2023, with residential users accounting for 88.38% and non-residential users 11.62%[37] Dividends and Shareholder Information - The company proposed a final dividend of RMB 0.065 per share for the year ending December 31, 2024, subject to shareholder approval[5] - The proposed final dividend per share for 2024 is RMB 0.065, down from RMB 0.09 in 2023, totaling RMB 30,335,500[29] - The company will withhold a 10% corporate income tax on dividends paid to non-resident H-share shareholders as per relevant tax regulations[97] - The record date for shareholders to qualify for the proposed final dividend for 2024 is June 4, 2025[104] Operational Efficiency and Costs - The operating costs for 2024 were RMB 1,548.55 million, reflecting an 8.40% increase from RMB 1,428.53 million in 2023[51] - The gross profit for 2024 was RMB 257.16 million, down 3.29% from RMB 265.89 million in 2023, resulting in a gross margin of 14.24% compared to 15.69% in 2023[57][58] - The maintenance and repair costs rose by 7.53% to RMB 131.15 million in 2024, attributed to an increase in external repair projects[54] - The company’s management expenses increased by 8.36% to RMB 108.94 million in 2024, primarily due to service fees related to A-share listing[59] Strategic Initiatives and Innovations - The group developed a "Heat Exchanger Efficiency Evaluation System" to enhance energy efficiency and is currently testing an "Equipment Ledger Management System" expected to be fully operational by mid-2025[45] - The group aims to enhance competitiveness and brand influence by focusing on energy efficiency and sustainable innovation in line with national energy-saving policies[81] - The group will accelerate digital transformation using big data and AI to optimize management and improve energy utilization efficiency[83] Corporate Governance - The company confirmed compliance with corporate governance codes, ensuring the audit committee consists of three independent non-executive directors[95] - The company has maintained a high level of corporate governance throughout the reporting period[88] - The audit committee has reviewed the annual performance for the year ending December 31, 2024, and agreed with the accounting treatment adopted by the company[95] Future Outlook and Risks - The group is exposed to strategic risks due to potential government policy adjustments affecting the heating industry, which may lead to increased compliance costs[67] - The group plans to diversify energy supply methods to mitigate the impact of energy price fluctuations on operational costs and profitability[69] - The group will continue to optimize corporate governance structures to enhance operational effectiveness and support sustainable development[86]

Jilin Province Chuncheng Heating Company Limited * 吉 林 省 春 城 熱 力 股 份 有 限 公 司 〔 於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司 〕 股份代號：1853 (1) 中期報告 -2 n * 篷 供 晨 別 目 錄 2 公司資料 4 中期財務概要 5 管理層討論與分析 14 企業管治報告 17 其他資料 20 合併資產負債表 23 合併利潤表 25 合併現金流量表 27 合併股東權益變動表 29 財務報表附註 59 釋義 公司資料 | --- | --- | --- | |-------------------------|----------------------------------|---------------------| | | | | | 公司信息 | | 監事 | | 中文名稱： | 吉林省春城熱力股份有限公司 | 仇建華先生 （主席） | | 英文名稱： | Jilin Province Chuncheng Heating | 張維女士 | | | Company Limited* | 李曉 ...

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 906.63 million, an increase of 0.92% compared to the same period in 2023[1]. - Profit before tax for the same period was RMB 200.62 million, representing a growth of 14.17% year-over-year[1]. - Net profit attributable to equity holders for the six months ended June 30, 2024, was RMB 148.14 million, an increase of 18.59% compared to the same period in 2023[1]. - Earnings per share for the six months ended June 30, 2024, was RMB 0.32, an increase of RMB 0.05 compared to the same period in 2023[1]. - Operating profit for the six months ended June 30, 2024, reached RMB 200.68 million, compared to RMB 175.72 million in 2023, indicating an increase of approximately 14.2%[6]. - Net profit for the six months ended June 30, 2024, was RMB 148.14 million, up from RMB 124.92 million in 2023, reflecting a growth of around 18.5%[7]. - Basic and diluted earnings per share for the six months ended June 30, 2024, were both RMB 0.32, compared to RMB 0.27 in 2023, marking an increase of approximately 18.5%[8]. - The company's total costs for the first half of 2024 were RMB 686,590,830.07, compared to RMB 672,736,557.40 in the same period of 2023, reflecting an increase of about 2.7%[13]. - The total income tax expense for the first half of 2024 was RMB 52,475,162.44, compared to RMB 50,787,451.54 in the first half of 2023, reflecting an increase of about 3.3%[19]. - Profit for the period for the six months ended June 30, 2024, was RMB 148.14 million, an increase of 18.59% from RMB 124.92 million in the same period of 2023, driven by reduced credit impairment losses and increased heating customer base[50]. Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 2,047.73 million, down from RMB 3,006.59 million as of December 31, 2023[3]. - Total current liabilities decreased to RMB 794.33 million from RMB 1,901.71 million as of December 31, 2023[4]. - Total non-current liabilities were RMB 115.41 million, slightly increased from RMB 115.04 million as of December 31, 2023[5]. - The company's equity attributable to owners increased to RMB 1,137.99 million from RMB 989.85 million as of December 31, 2023[5]. - The company's total assets as of June 30, 2024, amounted to approximately RMB 2.05 billion, while total liabilities were about RMB 909.74 million[12]. - Cash and cash equivalents as of June 30, 2024, were RMB 553.83 million, a decrease of 50.15% from RMB 1,111.04 million as of December 31, 2023, primarily due to cash flow timing differences[52]. - The group had interest-bearing bank and other borrowings totaling approximately RMB 35 million as of June 30, 2024, with a fixed interest rate of 3.9% per annum[54]. Operational Efficiency and Costs - The company experienced a significant reduction in financial expenses, with interest expenses decreasing from RMB 5.27 million in 2023 to RMB 1.72 million in 2024[6]. - The company's total construction and maintenance costs decreased from RMB 9,329,477.97 in the first half of 2023 to RMB 1,895,403.15 in the first half of 2024, a significant decline of approximately 79.7%[13]. - The gross profit for the six months ended June 30, 2024, was RMB 220.04 million, a decrease of 2.47% from RMB 225.62 million in the same period of 2023, attributed to rising labor and utility costs[46]. - Administrative expenses for the six months ended June 30, 2024, were RMB 43.23 million, a 1.77% increase from RMB 42.47 million in the same period of 2023, due to increased depreciation and personnel costs[47]. - Financial costs for the six months ended June 30, 2024, were RMB 1.72 million, a significant decrease of 67.35% from RMB 5.27 million in the same period of 2023, due to a reduction in total loans[48]. Heating Business Performance - The company is focused on expanding its heating services and enhancing its operational efficiency to drive future growth[9]. - Heating business revenue for the six months ended June 30, 2024, was RMB 900.32 million, an increase of RMB 20.98 million or 2.39% from RMB 879.34 million in the same period of 2023[29]. - The gross profit from the heating segment for the six months ended June 30, 2024, was approximately RMB 220.04 million, compared to RMB 225.62 million in 2023, showing a slight decrease[12]. - The number of heating customers served by the group was 552,448, up by 19,310 customers or 3.62% from 533,138 in the same period last year[29]. - As of June 30, 2024, the heating area of the group reached 67.437 million square meters, an increase of 2.301 million square meters or 3.53% compared to the same period in 2023[29]. Research and Development - Research and development expenses for the six months ended June 30, 2024, were RMB 804,993.79, up from RMB 758,975.06 in 2023, reflecting an increase of approximately 6.1%[6]. - The group developed an "Equipment Ledger Management System," with 90% of the development completed, expected to be launched in the second half of 2024[38]. - The group obtained one utility model patent and one invention patent, along with three software copyright certificates during the reporting period[38]. Corporate Governance and Compliance - The company has maintained high standards of corporate governance and has complied with relevant regulations during the reporting period[61]. - The audit committee has reviewed the interim results for the six months ended June 30, 2024, and agreed with the accounting treatment adopted by the company[62]. Future Plans and Strategies - The company plans to enhance heating quality and reduce energy consumption in the second half of 2024, focusing on low-emission boiler upgrades and smart heating system improvements[58]. - The company will continue to optimize heat resource allocation to address heating shortages in certain areas[58]. - The company is focused on innovation and safety in its development strategy to drive business growth[28].

Leasing and Related Party Transactions - The estimated value of the right-of-use assets under the leasing agreements is approximately RMB 7,945,000, with applicable percentage calculations exceeding 0.1% but below 5%[11] - The company has a framework agreement with its controlling shareholder, Chun Cheng Investment, for heat supply from September 15, 2021, to December 31, 2023, which includes independent contracts for heat purchase orders[16] - The company has entered into multiple leasing agreements with Chun Cheng Investment, with annual rents ranging from RMB 76,650 to RMB 1,000,000, covering various terms until 2025[20] - Chun Cheng Investment holds approximately 69.75% of the company's equity, making it the controlling shareholder[13] - The company has established a heat procurement framework agreement with Chun Cheng Investment from November 1, 2021, to December 31, 2023[17] - The company has confirmed that there are no breaches of non-competition agreements by the controlling shareholder[23] - Chun Cheng Investment holds approximately 69.75% of the company's total share capital, making it a related party in the transaction[57] Corporate Governance and Compliance - The company is committed to maintaining compliance with the Corporate Governance Code and has established internal management systems to ensure regulatory adherence[54] - Independent non-executive directors have reviewed related party transactions and confirmed compliance with pricing policies and agreements[23] - The company has maintained a high level of corporate governance standards, adhering to the principles outlined in the corporate governance code[65] - The board of directors consists of 8 members, including 4 executive directors, 1 non-executive director, and 3 independent non-executive directors[66] - All independent non-executive directors confirmed their independence and compliance with the independence guidelines as of December 31, 2023[70] - The company has implemented an anti-corruption policy to ensure compliance with listing rules and regulatory requirements[66] - The supervisory board participated in 4 training sessions during the reporting period to enhance their oversight capabilities[63] - The company has established a robust internal control and risk management system to monitor its operations and financial performance[73] - The company has confirmed the effectiveness of its risk management and internal control systems to the board and audit committee for the year ending December 31, 2023[148] Financial Performance and Outlook - The company reported a significant increase in revenue for the fiscal year ending December 31, 2023, reflecting a year-over-year growth of 15%[180] - User data showed a 20% increase in active users compared to the previous year, indicating strong customer engagement and retention[180] - The company has set a revenue guidance for the next fiscal year, projecting a growth rate of 10% to 12%[180] - New product launches are expected to contribute an additional $50 million in revenue over the next year[180] - The company is investing in new technology development, with a budget allocation of $10 million for R&D in the upcoming fiscal year[180] - Market expansion plans include entering two new regional markets, aiming for a 5% market share within the first year of operation[180] - The company is considering strategic acquisitions to enhance its market position, with potential targets identified in the industry[180] - Operational efficiency improvements are projected to reduce costs by 8% over the next year[180] Dividend Policy and Shareholder Communication - The board has approved a dividend policy to distribute no less than 30% of the annual distributable net profit to shareholders, subject to various considerations[102] - The proposed final dividend for the year ending December 31, 2023, is RMB 0.09 per share, totaling approximately RMB 420 million, consistent with the previous year's dividend[107] - The final dividend is subject to approval at the annual general meeting scheduled for May 17, 2024, with payment expected on July 5, 2024[107] - The company emphasizes compliance with tax regulations regarding dividend payments to H-share shareholders[111] - The company is committed to maintaining transparency and accuracy in its dividend distribution process[111] - The company has made efforts to ensure that its board composition reflects diversity in knowledge, skills, and industry backgrounds[117] - The company is committed to enhancing communication with shareholders through various channels, including annual general meetings and regular announcements[131] Risk Management and Internal Controls - The company has established a significant internal reporting system for confidential information and regulatory disclosures[149] - The board of directors is responsible for the preparation of the company's financial statements for the year ending December 31, 2023[54] - The external auditor's responsibilities regarding the financial statements are detailed in the audit report on pages 54 to 58 of the report[54] - The company has implemented a whistleblowing policy allowing employees and business partners to report concerns anonymously[150] - The company has a robust internal control system covering financial, operational, and compliance monitoring[54] - The board has reviewed the effectiveness of its risk management and internal control systems for the year ending December 31, 2023[148] Board Structure and Diversity - The board aims to achieve and maintain diversity in its composition, ensuring a balanced mix of skills and perspectives[117] - The nomination committee aims to improve gender diversity on the board by considering at least one qualified female senior management candidate for board membership[143] - The board has established strict selection criteria for board candidates, considering factors such as integrity, experience in the heating industry, and commitment to the company's interests[143] - The company has confirmed the effectiveness of its risk management and internal control systems to the board and audit committee for the year ending December 31, 2023[148]

Financial Performance - For the year ended December 31, 2023, the group's revenue was RMB 1,694.42 million, an increase of 2.40% compared to the same period in 2022[1]. - The group's profit before tax for the year ended December 31, 2023, was RMB 168.47 million, reflecting a growth of 1.71% year-on-year[1]. - The net profit attributable to equity holders for the year ended December 31, 2023, was RMB 120.96 million, representing a 5.49% increase compared to 2022[1]. - Earnings per share for the year ended December 31, 2023, was RMB 0.26, an increase of RMB 0.01 from the previous year[1]. - The total comprehensive income for 2023 is CNY 119,955,527.33, compared to CNY 114,510,477.46 in 2022, indicating an increase of about 4.0%[44]. - The total revenue for the year 2023 is CNY 168,471,784.48, compared to CNY 165,644,983.42 in 2022, showing an increase of approximately 1.1%[37]. - The group's gross profit for 2023 was RMB 265.89 million, up 15.28% from RMB 230.65 million in 2022[132]. - The group's net profit for 2023 was RMB 120.96 million, reflecting a growth of 5.49% compared to RMB 114.67 million in 2022, mainly due to an increase in heating area leading to higher revenue from heating services[137]. Assets and Liabilities - As of December 31, 2023, total assets amounted to RMB 3,006.59 million, a slight decrease from RMB 3,038.97 million in 2022[14]. - Total liabilities as of December 31, 2023, were RMB 2,016.75 million, down from RMB 2,127.07 million in the previous year[16]. - The company's total assets increased, with equity reaching RMB 989.85 million, up RMB 77.95 million from the previous year[112]. - As of December 31, 2023, the group held cash and cash equivalents of RMB 1,111.04 million, a 7.84% increase from RMB 1,030.24 million at the end of 2022, driven by an increase in cash generated from operating activities[139]. Heating Business - The heating business remains the core operation, with stable growth in overall profitability compared to the previous year[62]. - The company's heating business revenue for the year was RMB 1,570.73 million, with external customer sales contributing RMB 1,570.73 million[51]. - The group's heating business revenue for the year was RMB 1,570.73 million, an increase of RMB 32.31 million or 2.10% from RMB 1,538.42 million in 2022[86]. - The estimated heat purchase quota was 23,380,000 GJ, with actual consumption at 20,694,183 GJ, resulting in a utilization rate of 88.51%[68]. - The number of heating customers increased to 551,558, up by 18,190 customers or 3.41% from 2022[86]. - The group procured a total of 22.96 million gigajoules of heating energy, with 20.69 million gigajoules used for heating production[89]. Costs and Expenses - The company's operating cost for 2023 was RMB 1,428.53 million, a slight increase of 0.31% from RMB 1,424.06 million in 2022[102]. - The gross profit margin for 2023 was 15.69%, up from 13.94% in 2022, reflecting a 12.55% increase due to higher revenue from heating services[108]. - Labor costs for 2023 were RMB 146.36 million, a decrease of 3.76% from RMB 152.08 million in 2022[105]. - The group's maintenance and repair costs amounted to RMB 121.97 million, an increase of 47.88% compared to RMB 82.48 million in 2022, primarily due to an increase in external repair projects[128]. - The company's total other income for 2023 was RMB 30.52 million, a decrease of 12.23% from RMB 34.76 million in 2022, mainly due to reduced interest income[101]. Research and Development - Research and development expenses for the year were RMB 2.32 million, up from RMB 1.97 million in the previous year, indicating increased investment in innovation[8]. - The group obtained 7 utility model patents and 9 software copyrights during the reporting period[75]. - The group is developing an "Equipment Ledger Management System," with 90% of the PC and mobile functionalities completed, expected to launch in 2024[96]. Corporate Governance and Compliance - The group has complied with the corporate governance code and has established an audit committee as per the listing rules[180][185]. - The group will continue to deepen the integration of modern corporate systems and governance structures to improve internal control systems and enhance risk resistance capabilities[179]. - The group is obligated to withhold 10% corporate income tax for non-resident H-share shareholders when distributing dividends for the year ending December 31, 2023[187]. Future Plans and Strategies - The group plans to enhance service quality and expand its market share in the heating business while continuing to invest in smart heating technologies[149]. - The group aims to strengthen safety training and improve overall safety awareness among employees to ensure safe operations[150]. - The group plans to increase investment in environmental technology research and application to comply with national environmental standards[166]. - The company is actively pursuing technological innovation and collaboration to improve energy efficiency and reduce emissions[62]. Shareholder Information - The annual general meeting will be held on May 17, 2024[191]. - H shareholders must submit transfer documents by May 10, 2024, to be eligible to vote[194]. - The company is unaware of any shareholders waiving dividend arrangements for the year ending December 31, 2023[190]. - Shareholders are advised to consult tax advisors regarding tax implications of holding and disposing of H shares[189].

Financial Performance - The net cash flow from operating activities for the six months ended June 30, 2023, was negative RMB 381,497,069.28, an improvement compared to negative RMB 634,581,037.88 for the same period in 2022[23] - Cash received from sales of goods and services was RMB 77,680,224.87, down 37.2% from RMB 123,110,628.67 in the previous year[23] - The company reported a total revenue of 578,842.15 million for the first half of 2023[42] Liabilities and Assets - As of June 30, 2023, the total current liabilities amounted to RMB 1,079,872,118.35, a decrease from RMB 2,007,489,182.40 as of December 31, 2022, indicating a reduction of approximately 46.2%[19] - Total liabilities decreased from RMB 2,127,073,518.69 as of December 31, 2022, to RMB 1,191,539,710.25 as of June 30, 2023, reflecting a reduction of approximately 44%[19] - The company’s long-term liabilities totaled RMB 111,667,591.90 as of June 30, 2023, a decrease from RMB 119,584,336.29 at the end of 2022[19] Cash Flow - The company reported cash outflows from operating activities totaling RMB 491,948,939.82, significantly lower than RMB 817,698,621.59 in the prior year[23] - The company’s cash flow from investment activities was negative RMB 3,986,341.13, worsening from negative RMB 2,585,853.60 in the previous year[23] Tax Incentives - The company is benefiting from tax incentives, including a VAT exemption on heating fees collected from residents, effective from January 1, 2019, to the end of the 2020 heating season[55] - The corporate income tax rate for high-tech enterprises is set at 15%, with the company obtaining high-tech enterprise certification valid for three years from September 10, 2020[59] - For small and micro enterprises, the effective income tax rate is reduced to 2.5% for annual taxable income not exceeding 1 million, applicable from January 1, 2021, to December 31, 2022[62] - The company is subject to a 20% tax rate on taxable income exceeding 1 million but not exceeding 3 million, effective from January 1, 2022, to December 31, 2024[62] - The company has extended the execution period of certain tax incentives until the end of the 2023 heating season[66] - The company is classified under the productive service industry, allowing it to apply a 5% reduction on VAT payable based on deductible input tax[68] Accounts Receivable - As of June 30, 2023, accounts receivable amounted to 69,113,456.57, with specific provisions for expected credit losses detailed[65] - The total accounts receivable as of June 30, 2023, is CNY 101,433,145.62, compared to CNY 587,425,208.07 as of December 31, 2022, indicating a significant decrease[120] - The aging analysis of accounts receivable shows that 1-year or less accounts for RMB 139,864,272.18, representing 60% of total receivables[78] - The company’s bad debt provision ratio is approximately 29.72% based on the aging analysis of receivables[88] - The total expected credit loss provision for accounts receivable is CNY 197,909,715.32, with a provision ratio of 29.35%[102] - The aging analysis shows that accounts receivable under one year amount to CNY 82,393,762.18, with a provision of CNY 3,073,287.32, representing a 3.73% provision ratio[116] - The total accounts receivable as of June 30, 2023, is CNY 129,521,325.25, a decrease from CNY 199,672,999.06 as of December 31, 2022, representing a reduction of approximately 35%[174] - The provision for bad debts for accounts aged over five years is 100%, amounting to CNY 8,106,193.77[120] - The total bad debt provision as of June 30, 2023, is CNY 12,709,364.69, compared to CNY 4,492,775.05 as of December 31, 2022[122] Corporate Governance - The company has not engaged in any significant legal proceedings as of June 30, 2023, indicating a stable legal standing[15] - The company has not issued or granted any convertible securities, options, or warrants during the reporting period, maintaining a conservative capital structure[7] - The company has not reported any prior accounting errors that require retrospective restatement during the reporting period[105] - The company has not sold any investment properties, fixed assets, or intangible assets during the six months ending June 30, 2023[173] - The company has not changed its significant accounting policies or estimates during the reporting period[87] Business Strategy - The company continues to focus on heating supply and network construction as part of its core business strategy[44] - The company anticipates continued growth in its service offerings and market expansion in the coming periods[90] - The company’s revenue primarily comes from heating and transportation services, as well as engineering construction and maintenance[92] Accounting Practices - The company’s financial statements are prepared in accordance with the current accounting standards and relevant regulations[46] - The company adheres to the accounting standards, ensuring that financial statements accurately reflect its financial position and operating results[109] - The company recognizes network construction fees as revenue over a benefit period of 16 years, using the straight-line method[125] - The company’s engineering and maintenance services are recognized based on the progress of performance obligations, using the input method for revenue recognition[96]

Financial Performance - For the six months ended June 30, 2023, the group's other income and other gains net amounted to RMB 19.172 million, an increase of 25.05% compared to RMB 15.3309 million in the same period of 2022[3]. - The group's other gains for the six months ended June 30, 2023, were RMB 9.2239 million, representing a significant increase of 71.90% from RMB 5.3657 million in the same period of 2022, primarily due to increased government subsidies[4]. - The group reported a decrease in bank deposit interest income to RMB 9.8414 million, a slight decline of 0.03% from RMB 9.8446 million in the same period of 2022[4]. Cash Flow - As of June 30, 2023, the group held cash and cash equivalents of RMB 699.605 million, a decrease of 32.09% from RMB 1,030.2361 million as of December 31, 2022[4]. - The group experienced a net cash outflow from operating activities of RMB 381.4971 million during the reporting period[4]. - The group had a net cash inflow from financing activities of RMB 54.3496 million during the reporting period[4]. Financial Costs - The group's financial costs for the six months ended June 30, 2023, were RMB 5.2711 million, a substantial increase of 337.29% compared to RMB 1.2054 million in the same period of 2022, mainly due to an increase in total loans[12]. - The group incurred RMB 236.6142 million in cash payments for goods and labor during the reporting period[4]. Non-Operating Income - The group received RMB 0.1067 million in non-operating income for the six months ended June 30, 2023, a decrease of 11.53% from RMB 0.1206 million in the same period of 2022[4]. Adjustments and Accuracy - The adjustments made in the announcement do not affect the accuracy of other financial data included in the interim results announcement[5].

Financial Performance - Total revenue for the six months ended June 30, 2023, was approximately RMB 898.35 million, a slight increase from RMB 887.54 million in the same period of 2022, representing a growth of 1.0%[12] - Operating profit for the same period increased significantly to approximately RMB 175.72 million, compared to RMB 89.61 million in 2022, marking an increase of 96.5%[12] - Net profit for the six months ended June 30, 2023, was approximately RMB 124.92 million, up from RMB 63.76 million in 2022, reflecting a growth of 96.0%[14] - Basic and diluted earnings per share for the period were both RMB 0.27, compared to RMB 0.14 in the previous year, indicating a 92.9% increase[16] - The company's net profit attributable to equity holders for the six months ended June 30, 2023, was RMB 124.92 million, representing a significant increase of 95.92% from RMB 63.76 million in the same period of 2022[31] Assets and Liabilities - As of June 30, 2023, the total current assets decreased to RMB 1,101,885,383.67 from RMB 1,893,488,552.32 as of December 31, 2022, representing a decline of approximately 42%[4] - The total liabilities decreased to RMB 1,191,539,710.25 from RMB 2,127,073,518.69, indicating a reduction of approximately 44%[10] - The total assets decreased to RMB 2,186,361,885.50 from RMB 3,038,974,956.81, reflecting a decline of about 28%[10] - The company's total equity increased to RMB 994,822,175.25 from RMB 911,901,438.12, representing a growth of about 9%[10] Revenue and Costs - Operating costs decreased to approximately RMB 672.74 million from RMB 760.19 million, resulting in a cost reduction of about 11.5%[12] - The group's operating costs for the six months ended June 30, 2023, were RMB 672.74 million, a decrease of 11.50% from RMB 760.19 million in the same period of 2022[121] - The cost of purchased heat for the six months ended June 30, 2023, was RMB 416.32 million, a decrease of 12.79% from RMB 477.39 million in the same period of 2022, primarily due to lower purchase prices[122] Accounts Receivable - Accounts receivable increased to RMB 163,403,239.36 from RMB 139,825,918.08, showing a growth of about 17%[4] - The accounts receivable as of June 30, 2023, totaled RMB 232.52 million, with a provision for bad debts of RMB 69.11 million, resulting in a net accounts receivable of RMB 163.40 million[42] - The total accounts receivable as of June 30, 2023, was 232.52 million, an increase of 29.72% from 69.11 million on December 31, 2022[43] - The provision for bad debts for accounts receivable was 9.97% as of June 30, 2023, compared to 29.35% on December 31, 2022[43] Research and Development - Research and development expenses rose to approximately RMB 758.98 thousand from RMB 671.07 thousand, an increase of 13.0%[12] - The company has focused on technological innovation and the development of smart heating systems to enhance energy production efficiency and customer service quality[56] - The company plans to invest in intelligent heating research and application, utilizing AI algorithms to enhance energy efficiency and operational effectiveness[162] Market and Future Plans - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency and service delivery[19] - The company aims to promote high-quality development in the heating industry while aligning with carbon peak and carbon neutrality goals[56] - The company plans to enhance heating quality and reduce energy consumption in the second half of the year, focusing on network pipeline installation and heating facility renovation projects[138] Safety and Management - The company maintained a strong focus on safety management, with no major safety incidents reported during the reporting period[68] - Management expenses for the first half of 2023 amounted to RMB 42.47 million, up from RMB 40.93 million in the same period of 2022, primarily due to labor costs and depreciation[30] Engineering and Projects - The group has completed 32 engineering projects in the first half of 2023, including key projects such as the "Changchun Carbon Neutral Industry Leading Zone"[88] - The company engaged in seven design projects in the first half of the year, including infrastructure upgrades and heating network renovations[67] Awards and Recognition - The company received the "2023 Excellent Application Case in Data Management" award from the Jilin Provincial Digital Economy Development Promotion Association[71] - The "Smart Heating Big Data" system developed in collaboration with universities has entered the final stage and is now in use, recognized as an excellent application case in data management[90] Dividends and Share Issuance - The company did not recommend any interim dividend for the six months ended June 30, 2023, consistent with the previous year[36] - The company plans to publicly issue up to 155.5666 million A-shares, with the proposed listing on the Shenzhen Stock Exchange[173]