Financial Performance - In 2021, the company achieved total revenue of approximately RMB 1,649.60 million, with a total profit of RMB 167.08 million, and total assets of RMB 2,894.44 million[12]. - In 2021, the company's revenue was RMB 1,649.60 million, a decrease of 13.04% from RMB 1,896.99 million in 2020[73]. - The gross profit for 2021 was RMB 325.32 million, representing a gross margin of approximately 19.7%[28]. - The net profit for 2021 was RMB 122.76 million, down 28.00% from RMB 170.51 million in 2020, primarily due to a significant decline in revenue from construction and maintenance services[97]. - The company's operating costs for 2021 were RMB 1,324.28 million, a decrease of 16.69% from RMB 1,589.51 million in 2020[79]. - The revenue from construction, maintenance, and design services for the year ended December 31, 2021, was RMB 152.56 million, a significant decrease of RMB 323.45 million or 67.95% compared to RMB 476.01 million in 2020[53]. - The engineering construction revenue for the year ended December 31, 2021, was RMB 57.78 million, down 76.65% from RMB 247.42 million in 2020, primarily due to the completion of the "Three Supplies and One Industry" project[54]. - The engineering maintenance revenue for the year ended December 31, 2021, was RMB 43.98 million, a decrease of 78.14% from RMB 201.20 million in 2020, attributed to the completion of the "Three Supplies and One Industry" project and reduced project undertakings due to the pandemic[56]. - The design services revenue for the year ended December 31, 2021, was RMB 8.73 million, a decline of 51.01% from RMB 17.82 million in 2020, mainly due to the completion of related projects and restrictions from the national "dual carbon" strategy[59]. - The total operating cost was RMB 1,324.28 million, a decrease of 16.69% from RMB 1,589.51 million in 2020[82]. Heating Business Performance - The heating business revenue increased by RMB 76.06 million compared to the previous year, representing a growth rate of 5.35%[5]. - The heating business revenue for 2021 was RMB 1,497.04 million, up 5.35% from RMB 1,420.98 million in 2020[39]. - The total heating area as of December 31, 2021, was 61.80 million square meters, an increase of 2.65% from 60.20 million square meters in 2020[36]. - The number of heating customers increased to 507,853, a growth of 0.41% from 505,788 in 2020[39]. - The company has expanded its heating service area to approximately 61.795 million square meters in Changchun City by the end of 2021[12]. - The company is focused on expanding its clean heating services in response to increasing demand and government initiatives[32]. Research and Development - A total of 13 patents were granted by the National Intellectual Property Administration, including invention, utility model, and design patents, along with 37 software copyrights[13]. - The company plans to enhance its R&D capabilities and promote smart heating technologies to drive innovation and efficiency[20]. - The company will invest in clean energy heating R&D to reduce reliance on coal and improve energy efficiency[21]. - The company completed the development of the "3D Pipeline System" which includes all heating elements and supports future integration with IoT systems[65]. - The company is exploring new technologies and materials through R&D collaborations, achieving progress in areas such as scale removal and water quality optimization[70]. Safety and Environmental Management - The company maintained a safe production record with no major responsibility accidents throughout the year, and environmental indicators met national standards[12]. - The company conducted 48 safety training sessions and held 7 safety production meetings during the year to strengthen safety management[14]. - The company conducted 68 emergency drills and 23 supervisory inspections, achieving a 100% rectification rate for identified hazards[16]. - The company is committed to deepening reforms and contributing to the development of the clean energy heating industry[25]. - The company has focused on safety management, with no major safety incidents reported during the year[67]. Dividend and Shareholder Information - The company plans to distribute a final dividend of RMB 0.115 per share, totaling approximately RMB 53.67 million, pending shareholder approval[6]. - The board of directors has approved a dividend policy to distribute no less than 30% of the annual distributable net profit to shareholders, subject to financial performance and other considerations[146]. - The company's distributable reserves as of December 31, 2021, amounted to approximately RMB 263.47 million, an increase from RMB 196.8 million as of December 31, 2020[156]. - The final dividend is subject to approval at the annual general meeting scheduled for May 20, 2022, with payment expected around July 8, 2022[145]. - The company will withhold a corporate income tax of 10% for H-share non-resident corporate shareholders when distributing the final dividend[149]. Market Strategy and Future Outlook - The company aims to increase its market share in the heating sector by leveraging national policies and strategic resource allocation[19]. - The company has set a revenue guidance of RMB 1.2 billion for the next fiscal year, indicating a projected growth of 20%[165]. - New product launches are expected to contribute an additional RMB 200 million in revenue, with a focus on enhancing user experience and technology integration[165]. - The company plans to expand its market presence in Southeast Asia, targeting a 15% market share within the next two years[165]. - A strategic acquisition of a local competitor is in progress, which is anticipated to increase market penetration by 30%[165]. Corporate Governance and Compliance - The company has complied with all significant rules and regulations affecting its operations during the reporting period[125]. - There were no significant events affecting the company since the end of the fiscal year[121]. - The company did not issue or grant any convertible securities, options, warrants, or similar rights during the fiscal year ending December 31, 2021[128]. - The company did not issue any bonds during the fiscal year ending December 31, 2021[129]. - The group has no significant investments, acquisitions, or disposals as of December 31, 2021[108]. - The group has no significant capital commitments or contingent liabilities as of December 31, 2021[108].

Financial Performance - The company reported revenue of RMB 881.83 million for the six months ended June 30, 2021, an increase of 40.06% compared to the same period in 2020[5]. - The pre-tax profit was RMB 156.96 million, up 29.22% year-on-year[5]. - Profit attributable to equity holders was RMB 117.45 million, reflecting a growth of 31.12% compared to 2020[5]. - For the six months ended June 30, 2021, the group's revenue was RMB 88,182.52 million, an increase of 40.06% compared to RMB 62,959.56 million for the same period in 2020[44]. - The heating business revenue for the same period was RMB 84,339.42 million, up 51.81% from RMB 55,555.79 million in 2020, primarily due to the consolidation of Yatai Thermal and Xixing Energy[44]. - Other income and net other gains for the six months ended June 30, 2021, amounted to RMB 1,460.73 million, a 76.09% increase from RMB 829.52 million in 2020[51]. - The group's gross profit for the six months ended June 30, 2021, was RMB 209.97 million, an increase of 37.20% compared to RMB 153.04 million in the same period of 2020[63]. - The net profit for the period was RMB 117.45 million, reflecting a 31.12% increase from RMB 89.58 million in the same period last year[66]. - The total comprehensive income for the first half of 2021 reached RMB 117,451,614.44, a significant increase from RMB 89,575,243.99 in the same period of 2020, representing a growth of approximately 31.1%[138]. Customer and Service Expansion - The number of heating customers increased to 505,788, a rise of 45.10% from 348,570 in 2020[9]. - The total heating area served reached 60.2 million square meters, an increase of 40.88% from 42.73 million square meters in 2020[9]. - Heating business revenue was RMB 843.39 million, up 51.81% from RMB 555.56 million in the same period last year[9]. - Xixing Energy's heating area reached 3.46 million square meters with a total of 30,829 customers, including 27,921 residential users and 2,908 non-residential users, generating a total heat output of 0.61 million GJ in the first half of 2021[24]. - Yatai Heating's heating area was 16.47 million square meters with 154,507 customers, including 135,937 residential users and 18,570 non-residential users, producing a total heat output of 3.79 million GJ in the first half of 2021[24]. Cost and Expenditure - Operating costs for the group were RMB 67,185.99 million, reflecting a 40.98% increase from RMB 47,656.00 million in the previous year[52]. - The cost of heating business was RMB 63,947.89 million, which is a 54.07% increase from RMB 41,505.13 million in 2020[52]. - The purchase cost for heating was RMB 39,005.23 million, up 54.18% from RMB 25,297.70 million in the same period last year[58]. - The maintenance and repair costs for the group were RMB 2,191.14 million, a 7.27% increase from RMB 2,042.59 million in 2020[61]. - Capital expenditures for the six months ended June 30, 2021, were RMB 70.71 million, a significant increase of 857.62% from RMB 7.38 million in 2020[66]. Research and Development - The company plans to continue investing in technology research and development to enhance heating service levels and efficiency[9]. - The company established a smart heating network inspection system in collaboration with Jilin University, aiming to improve leak detection accuracy by over 20%[33]. - The company obtained 2 utility model patents and 24 software copyrights in the first half of 2021, enhancing its technological capabilities[38]. - Research and development expenses for the first half of 2021 were RMB 898,082.67, indicating ongoing investment in innovation[133]. Governance and Compliance - The company has established a modern corporate governance structure to enhance shareholder value and accountability, adhering to the Corporate Governance Code[80]. - The audit committee has reviewed and confirmed the interim financial results for the six months ending June 30, 2021, prepared in accordance with Chinese accounting standards[89]. - The remuneration committee has held two meetings to review the remuneration policies and structures for directors and senior management during the reporting period[90]. - The nomination committee has evaluated the board structure and diversity, as well as the independence of independent non-executive directors[93]. Financial Position and Assets - As of June 30, 2021, the company's total assets amounted to RMB 1,952.7 million, a decrease from RMB 3,230.4 million as of December 31, 2020[124]. - The company's current assets totaled RMB 663.9 million, down from RMB 1,876.8 million in the previous year[124]. - The group's total equity as of June 30, 2021, was RMB 949.78 million, an increase of RMB 71.63 million compared to December 31, 2020[68]. - The total liabilities reported were 840,451,077.37 RMB, which the company is managing effectively[149]. Shareholder and Capital Structure - As of June 30, 2021, the total share capital of the company was 466,700,000 shares, consisting of 350,000,000 domestic shares and 116,700,000 H shares, with a par value of RMB 1.00 per share[97]. - The board of directors did not recommend the distribution of an interim dividend for the six months ended June 30, 2021[98]. - The company raised approximately HKD 274.2 million through the global offering of H shares at HKD 2.35 per share, with a net amount of approximately HKD 220.5 million available for use[114]. - The company has not issued any convertible securities, options, or warrants during the reporting period, indicating a stable capital structure[100]. Taxation and Compliance - The company benefits from a reduced corporate income tax rate of 15% due to its status as a high-tech enterprise, valid for three years from September 2019[184]. - The company has a tax rate of 25% for corporate income tax, with a reduced rate of 15% applicable to high-tech enterprises[184]. - The value-added tax rates applicable to the company include 13% for domestic sales and 9% for real estate leasing services[181]. Accounts Receivable and Bad Debts - The company reported accounts receivable of RMB 286.31 million as of June 30, 2021, a decrease of 7.3% from RMB 308.83 million as of December 31, 2020[191]. - The provision for bad debts increased to RMB 53.16 million, representing 18.57% of total accounts receivable as of June 30, 2021[191]. - The company's accounts receivable aging analysis shows that 22.50% of receivables are from heating services, with a provision for bad debts of 20.61%[191]. - The total accounts receivable amounted to 308,826,241.60, with a provision for bad debts of 41,731,225.64, resulting in a net value of 267,095,015.96[193].

Financial Performance - For the year 2020, the company's revenue reached RMB 1,896.95 million, an increase of 21.5% from RMB 1,561.42 million in 2019[22]. - The gross profit for 2020 was RMB 301.47 million, compared to RMB 287.17 million in 2019, reflecting a growth of 4.5%[22]. - The company reported a net profit of RMB 165.22 million for 2020, up 23.4% from RMB 133.97 million in 2019[22]. - The heating business revenue was RMB 1,427.83 million, an increase of 49% from RMB 960.7 million in 2019[32]. - The total non-current assets decreased to RMB 1,353.61 million from RMB 1,624.38 million in 2019[22]. - The net assets of the company were RMB 878.15 million, down from RMB 1,264.43 million in 2019[22]. - The company's sales cost was RMB 1,595.48 million, an increase of 25.21% from RMB 1,274.2 million in 2019[80]. - The sales cost for the heating segment was RMB 1,181.52 million in 2020, up 55.25% from RMB 761.03 million in 2019[81]. - The company's gross profit for 2020 was RMB 301.47 million, a 4.98% increase from RMB 287.17 million in 2019, with a gross margin of 15.89%[87]. - The company's net profit for 2020 was RMB 165.22 million, representing a 23.32% increase from RMB 133.97 million in 2019[95]. Business Expansion and Acquisitions - The company completed two major acquisitions in 2020, acquiring 50% of Xixing Energy and 100% of Yatai Heating, increasing the heating area to 60.2 million square meters, a growth of 52.41%, and the number of heating customers to 505,788, a growth of 57.89%[14]. - The company successfully acquired 50% of Xixing Energy and 100% of Yatai Heating, significantly expanding its heating business scale[32]. - The company plans to expand its heating business beyond Jilin Province to increase market share and optimize strategic layout[118]. - The company acquired 100% equity of Xixing Energy for RMB 52 million and 100% equity of Yatai Energy for RMB 318.38 million, enhancing its market position[107]. Technology and Innovation - The company achieved a total of 20 patents and 63 software copyrights in 2020, focusing on the development of the "Smart Heating Network" and "3D Pipeline System" projects[14]. - The company is enhancing its smart heating network system, focusing on two R&D projects related to data integration and statistical analysis models[48][49]. - The company plans to continue upgrading smart heating technology and enhance energy efficiency in response to increasing heating demand driven by environmental protection policies[8]. - The company will continue to invest in technology innovation and research and development to maintain its leading position in China's intelligent heating sector[118]. Safety and Compliance - The company invested RMB 8.15 million in safety production expenses in 2020, an increase of 58.25% year-on-year, with a 100% hidden danger rectification rate and no safety production accidents throughout the year[13]. - The company implemented safety management measures, resulting in no major safety incidents throughout the reporting period[68]. - The company has established systems and allocated resources to ensure compliance with regulatory requirements, with no significant violations reported during the reporting period[129]. Market Outlook - The overall market for heating services in China is expected to continue growing due to urbanization and environmental protection initiatives[7]. - The company is responding to national policies aimed at achieving carbon neutrality by 2060, aligning with the government's green and low-carbon initiatives[117]. Employee and Management - As of December 31, 2020, the company had a total of 1,686 employees, with the largest segment being 952 employees in the main company[112]. - The company is actively training employees to enhance their skills, with 670 frontline employees participating in skill improvement training[113]. - The company is committed to complying with national labor laws and ensuring employee welfare through social insurance management[114]. Shareholder Information - The company plans to distribute at least 30% of its annual distributable net profit as dividends to shareholders, subject to financial performance and regulatory considerations[151]. - The proposed final dividend for the year ended December 31, 2020, is RMB 0.103 per share, totaling approximately RMB 48.07 million, compared to RMB 79.34 million in 2019[154]. - As of December 31, 2020, the company's distributable reserves amounted to approximately RMB 196.8 million, an increase from RMB 175.9 million in 2019[166]. Corporate Governance - The company has established measures to ensure management independence and avoid conflicts of interest among directors[191]. - The company has a structured approach to corporate governance, ensuring compliance with relevant laws and regulations[179]. - The board of directors includes a mix of executive and independent non-executive members, ensuring diverse oversight and governance[190].

Financial Performance - For the six months ended June 30, 2020, the company reported revenue of RMB 629.6 million, a decrease of 5.0% compared to the same period in 2019[6]. - The company's profit attributable to equity holders was RMB 89.6 million, an increase of 6.7% year-on-year[6]. - Revenue for the six months ended June 30, 2020, was RMB 629,596 thousand, a decrease of 5.0% compared to RMB 662,692 thousand for the same period in 2019[114]. - Gross profit increased to RMB 151,453 thousand, up 2.0% from RMB 147,507 thousand year-over-year[114]. - The pre-tax profit for the group was RMB 121,464,000 for the six months ended June 30, 2020, compared to RMB 115,484,000 for the same period in 2019, indicating an increase of approximately 5%[147]. - The net profit for the group was RMB 89.6 million for the six months ended June 30, 2020, an increase of 6.7% from RMB 84.0 million in the same period of 2019, attributed to an increase in gross profit margin from the heating business[49]. - Basic and diluted earnings per share decreased to RMB 0.19 from RMB 0.24 year-over-year[114]. - The total tax expense for the period was RMB 31,889,000, slightly up from RMB 31,481,000 in the previous year, indicating a year-over-year increase of about 1.3%[7]. Heating Business Performance - The total heating area served by the company reached 42.73 million square meters, an increase of 438,000 square meters from 38.35 million square meters in 2019[10]. - The number of heating customers increased to 348,570, up by 41,604 from 306,966 in 2019[10]. - Heating business revenue for the first half of 2020 was RMB 555.6 million, representing a growth of 4.2% compared to RMB 533.0 million in the same period of 2019[10]. - The heating business is subject to seasonal fluctuations, with the heating period running from October to April of the following year, impacting revenue and profit significantly[154]. - Revenue from heating services was RMB 555,558,000, while construction, maintenance, and design services generated RMB 74,038,000, contributing to the overall revenue[147]. Operational Efficiency and Innovation - The company emphasized continuous improvement in service quality and technological innovation to maintain its leading position in the heating industry[8]. - The company is developing a smart heating big data system to enhance operational efficiency and decision-making[25]. - A three-dimensional digital pipeline system is being established to improve the management and monitoring of heating elements[26]. - The company has increased its investment in technology innovation and R&D, with two new utility model patents and two software copyrights obtained in the first half of 2020[34]. - The company plans to enhance clean energy heating methods and develop new heating models, focusing on combined heat and power generation and various renewable energy forms[62]. Financial Position and Cash Flow - The group’s cash and cash equivalents as of June 30, 2020, were RMB 441.5 million, a decrease of 36.9% from RMB 699.9 million as of December 31, 2019, primarily due to cash outflows from operating and investing activities[51]. - Net cash used in operating activities for the six months ended June 30, 2020, was RMB (282,708) thousand, compared to RMB (91,447) thousand for the same period in 2019, indicating a significant increase in cash outflow[127]. - Cash and cash equivalents decreased significantly to RMB 441,480 thousand as of June 30, 2020, from RMB 699,940 thousand at the end of 2019, representing a decline of 36.8%[199]. - The company reported net cash used in investing activities of RMB (37,576) thousand for the six months ended June 30, 2020, compared to RMB (5,482) thousand for the same period in 2019, reflecting increased investment outflows[127]. Corporate Governance - The company has established a modern corporate governance structure to enhance shareholder value and accountability[66]. - The audit committee held three meetings during the reporting period to review financial controls and the effectiveness of internal audits[75]. - The company confirmed compliance with the corporate governance code during the reporting period[68]. - The company has appointed three independent non-executive directors with appropriate professional qualifications to ensure governance standards are met[72]. Shareholder Information - As of June 30, 2020, the total share capital of the company was 466,700,000 shares, consisting of 350,000,000 domestic shares and 116,700,000 H shares, with a par value of RMB 1.00 per share[85]. - Major shareholder Changchun Heat Group Co., Ltd. held 325,500,000 domestic shares, representing 93.00% of the domestic shares and 69.75% of the total share capital[92]. - The board of directors did not recommend the distribution of an interim dividend for the six months ended June 30, 2020[86]. Future Outlook - The company aims to expand its heating business scale and improve service quality, leveraging its position as the largest heating enterprise in Jilin Province[62]. - The company intends to enhance its construction, maintenance, and design business capabilities, aiming to increase revenue from this segment in the second half of the year[63]. - The company is currently reviewing its expansion plans due to potential impacts from the COVID-19 outbreak, closely monitoring developments[102].

Company Overview - In 2019, the company successfully listed on the Hong Kong Stock Exchange, becoming the first heating enterprise to enter the Hong Kong capital market, raising approximately HKD 274 million through the public offering of 116.7 million H shares, which was oversubscribed by 97.25 times[13]. - The company has been recognized as a "High-tech Enterprise" and a "Small Giant Enterprise" in Jilin Province, highlighting its innovation capabilities[30]. - The company has a total of 1,081 employees as of December 31, 2019, distributed across various divisions, with the majority (886) in the main company[100]. Financial Performance - As of the end of 2019, the company achieved a total revenue of RMB 1,561.4 million, representing a year-on-year growth of 8.4%[14]. - The net profit for 2019 was RMB 134.0 million, which is a year-on-year increase of 30.5%[14]. - Total assets reached RMB 2.57 billion, showing a year-on-year growth of 15.8%[17]. - The gross profit for 2019 was RMB 287,169 thousand, up 27.8% from RMB 224,674 thousand in 2018[32]. - The group's net profit for 2019 was RMB 134.0 million, a 30.5% increase from RMB 102.7 million in 2018, driven by growth in heating business gross profit and margin[83]. - The total sales cost for 2019 was RMB 1,274.2 million, reflecting a 4.8% increase from RMB 1,215.5 million in 2018[69]. Revenue Breakdown - Revenue from heating services amounted to RMB 960.7 million, with a year-on-year increase of 2.3%[17]. - Revenue from construction, maintenance, and design services was RMB 600.7 million, reflecting a year-on-year growth of 20.0%[17]. - Engineering construction revenue was RMB 366.4 million, up 17.9% from RMB 310.9 million in the previous year, attributed to new projects in Inner Mongolia[58]. - Engineering maintenance revenue increased by 27.6% to RMB 220.8 million from RMB 173.1 million, driven by new contracts in 2019[59]. - Design services revenue decreased by 39.8% to RMB 9.7 million from RMB 16.1 million, mainly due to the completion of most "Three Supplies and One Industry" design projects in 2018[60]. Operational Efficiency - The user service quality improved significantly, with a 70% reduction in user complaints compared to the previous year[21]. - The company upgraded its smart heating network system, enhancing operational efficiency and management through big data analysis and automation[54]. - The actual consumption of purchased heat was 14,180,965 GJ, up from 12,570,763 GJ in 2018, showing a significant increase in efficiency[47]. - The utilization rate of purchased heat was 73.5% in 2019, compared to 68.7% in 2018, indicating improved operational efficiency[47]. Strategic Initiatives - The company is actively exploring mixed-ownership reform and asset securitization to leverage capital markets for growth and expansion[13]. - The company plans to focus on four strategic areas in 2020, including increasing investment in technology innovation and accelerating industry integration[14]. - The company aims to enhance its market position by focusing on quality and efficiency while expanding its construction, maintenance, and design services[38]. - The company will continue to focus on technological innovation, upgrading technology, and developing clean energy in 2020 to expand its asset scale and maintain its industry-leading position[106]. Environmental Commitment - The central economic work conference emphasized the need to strengthen pollution prevention and ecological construction, promoting green development methods in the heating industry[13]. - The company is committed to sustainable development by increasing investment in urban centralized heating and expanding heating service areas[13]. - The company is actively responding to national environmental protection requirements by optimizing its heating network and promoting clean energy heating solutions[36]. - The company is committed to advancing its "smart technology + clean energy" heating model in response to government initiatives for cleaner heating solutions[36]. Corporate Governance - The company has maintained compliance with the corporate governance code since its listing on October 24, 2019[183]. - The board of directors includes a mix of executive and independent non-executive members, ensuring a balance of power and oversight[148]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[200]. Future Outlook - The company plans to leverage its advantages in the heating business to actively promote industry consolidation and expand its main business scale[107]. - The company aims to develop an intelligent heating network system using technologies such as smart interconnection, 5G transmission, and big data analysis to reduce operational costs and improve energy efficiency[107]. - The company will continue to monitor policy changes and analyze their impacts to make reasonable use of relevant policies[91].