CQME 重慶能電股份負 CHONGQING MACHINERY & ELE (a joint stock limited company incorporated in the People's Republic of China with limited liability) (於中華人民共和國註冊成立的股份有限公司) Stock Code 股份代碼: 02722 2024 中期報告 INTERIM REPORT * For identification purposes only 僅供識別 CONTENTS Corporate Information 2 公司資料 Results Highlights 7 業績摘要 Chairman's Statement 8 董事長報告 Management's Discussion and Analysis 18 管理層討論及分析 Other Information 35 其他數據 Review Report on Interim Financial Information 40 中期財務資料的審閱報告 Interim Condensed Consolidated ...

Revenue and Profit Performance - Revenue for the first half of 2024 reached RMB 4,225.7 million, an increase of 8.7% year-over-year[2] - Gross profit for the first half of 2024 was RMB 744.0 million, up 1.5% compared to the same period last year[2] - Net profit attributable to shareholders for the first half of 2024 was RMB 270.1 million, a significant increase of 48.5% year-over-year[2] - Basic earnings per share for the first half of 2024 were RMB 0.07, up 48.5% compared to the same period last year[2] - Net profit for the first half of 2024 was RMB 290.1 million, compared to RMB 202.8 million in the same period last year[5] - Earnings per share (basic and diluted) for the first half of 2024 were RMB 0.07, up from RMB 0.05 in the same period last year[5] - Group's total revenue for the first half of 2024 reached approximately RMB 4,225.7 million, a year-on-year increase of 8.7%[61] - Group's gross profit for the first half of 2024 increased by RMB 11.3 million or 1.5% year-on-year to RMB 744.0 million[62] - Operating profit rose by RMB 95.4 million, or 40.3%, to RMB 331.8 million[66] - Shareholders' profit attributable increased by RMB 88.2 million, or 48.5%, to RMB 270.1 million, with earnings per share rising from RMB 0.05 to RMB 0.07[70] Costs and Expenses - Total operating costs for the first half of 2024 were RMB 4,201.4 million, with operating costs accounting for RMB 3,478.8 million[4] - R&D expenses for the first half of 2024 were RMB 197.0 million, an increase from RMB 180.5 million in the same period last year[4] - Sales and administrative expenses increased by RMB 23.5 million, or 5.6%, to RMB 443.9 million, with the ratio to sales slightly decreasing from 10.8% to 10.5%[65] - Financial expenses surged by RMB 19.7 million, or 76.1%, to RMB 45.6 million due to a significant decrease in exchange gains[67] - Current income tax expense: 43,503,628.10 RMB in the first half of 2024, compared to 31,933,093.69 RMB in the same period of 2023[48] Assets and Liabilities - Total assets decreased to RMB 17,343,779,769.96 as of June 30, 2024, compared to RMB 17,486,084,156.96 at the end of 2023[6] - Total liabilities decreased to RMB 8,922,158,285.40 as of June 30, 2024, from RMB 9,246,252,819.51 at the end of 2023[7] - Shareholders' equity increased to RMB 8,421,621,484.56 as of June 30, 2024, up from RMB 8,239,831,337.45 at the end of 2023[7] - Cash and cash equivalents decreased to RMB 1,984,412,913.99 as of June 30, 2024, from RMB 2,318,562,064.85 at the end of 2023[6] - Accounts receivable increased to RMB 3,603,149,730.77 as of June 30, 2024, compared to RMB 2,744,375,342.87 at the end of 2023[6] - Inventory decreased slightly to RMB 2,285,367,656.28 as of June 30, 2024, from RMB 2,342,683,029.07 at the end of 2023[6] - Short-term borrowings decreased to RMB 295,281,377.69 as of June 30, 2024, from RMB 568,383,530.32 at the end of 2023[7] - Long-term borrowings decreased to RMB 1,082,335,639.59 as of June 30, 2024, from RMB 1,632,646,116.22 at the end of 2023[7] - Retained earnings increased to RMB 3,600,539,329.19 as of June 30, 2024, up from RMB 3,404,126,480.53 at the end of 2023[7] - Total assets decreased by RMB 142.3 million to RMB 17,343.8 million, with current assets decreasing by RMB 206.9 million and non-current assets increasing by RMB 64.6 million[75] - Total liabilities decreased by RMB 324.1 million to RMB 8,922.2 million, with current liabilities increasing by RMB 169.9 million and non-current liabilities decreasing by RMB 493.9 million[76] - Net assets increased by RMB 181.8 million to RMB 8,421.6 million[77] - The company's debt ratio decreased from 25% to 21.7%, and the current ratio decreased from 1.60:1 to 1.53:1[78] Cash Flow - Cash flow from operating activities for the first half of 2024 was negative RMB 252,059,706.09, compared to positive RMB 23,330,238.44 in the same period of 2023[10] - Cash flow from investing activities for the first half of 2024 was negative RMB 120,654,783.12, a significant decrease from positive RMB 115,114,877.78 in the same period of 2023[11] - Cash flow from financing activities for the first half of 2024 was negative RMB 431,564,242.41, compared to positive RMB 13,290,246.75 in the same period of 2023[12] - Cash and bank deposits (including restricted cash) decreased by RMB 334.2 million, or 14.4%, to RMB 1,984.4 million, mainly due to bank loan repayments[72] Business Segments - The company's main business segments include clean energy equipment and high-end intelligent equipment manufacturing, sales, and services[13] - Clean energy equipment segment revenue increased by 4.9% year-over-year to RMB 3,359.4 million, despite a 1.5% decline in gross profit to RMB 557.7 million[55][56] - High-end intelligent equipment segment revenue grew to RMB 830.9 million, with a gross profit of RMB 160.5 million, representing a 21.6% share of total gross profit[55] - Industrial services segment revenue was RMB 34.8 million, with a gross profit of RMB 25.2 million, contributing 3.4% to total gross profit[55] - High-end intelligent equipment segment achieved revenue of approximately RMB 830.9 million, a year-on-year increase of 26.9%[58] - High-end intelligent equipment segment's gross profit increased by RMB 21.3 million or 15.3% year-on-year to RMB 160.5 million[58] - Industrial service segment's revenue increased by 7.1% year-on-year to RMB 34.8 million[60] - Clean energy equipment segment accounted for 79.5% of total revenue, with a year-on-year growth of 4.9%[61] Investments and Income - Investment income for the first half of 2024 was RMB 281.7 million, up from RMB 181.8 million in the same period last year[4] - Equity method investment income: 285,368,786.74 RMB in the first half of 2024, up from 177,808,915.47 RMB in the same period of 2023[45] - Investment income increased by RMB 99.9 million, or 55.0%, to RMB 281.7 million, driven by a RMB 100.6 million, or 64.0%, growth in Chongqing Cummins' performance[68] Government Subsidies and Non-operating Income - Government subsidies: 74,891,627.97 RMB in the first half of 2024, compared to 29,082,020.05 RMB in the same period of 2023[45] - Other income for the first half of 2024 increased by RMB 59.4 million or 200% year-on-year to RMB 88.9 million, mainly due to increased government subsidies[63] - Non-operating income: 9,257,744.32 RMB in the first half of 2024, up from 3,390,927.08 RMB in the same period of 2023[47] Tax and Financial Policies - The company's subsidiaries in western China enjoy a preferential corporate income tax rate of 15% until 2030[38] - High-tech enterprises within the group benefit from a reduced corporate income tax rate of 15%[38] - Xinjiang Fubaotian Cotton Harvesting Service Co., Ltd. is exempt from corporate income tax due to its agricultural operations[39] - The group's corporate income tax rates vary by region, with rates of 15%, 16.5%, 19%, and 26% in different countries[35] - The group's VAT rates include 13%, 9%, 6%, and simplified rates of 5% and 3%[35] - Urban maintenance and construction tax is levied at 5% and 7% of the actual VAT paid[35] - Education surcharge is calculated at 2% and 3% of the actual VAT paid[35] Corporate Governance and Compliance - The company has evaluated its ability to continue as a going concern for the 12 months following June 30, 2024, and found no significant uncertainties[15] - The company's financial statements are prepared in accordance with the "Enterprise Accounting Standards" and other relevant regulations issued by the Ministry of Finance, as well as the disclosure requirements of the China Securities Regulatory Commission and the Hong Kong Stock Exchange[14] - The company's accounting policies and estimates include provisions for bad debt, inventory valuation, fixed asset depreciation, intangible asset amortization, and revenue recognition[16] - The company's financial statements for the period ending June 30, 2024, accurately reflect its financial position, operating results, and cash flows[17] - The company's operating cycle is 12 months, and its financial statements are prepared in RMB[18] - The company has adopted and complied with the Corporate Governance Code as set out in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[91] - The Audit and Risk Management Committee reviewed the company's accounting standards, laws, and regulations with management and auditors, confirming compliance and appropriate disclosure in the interim results[93] Shareholder Information - Chongqing Machinery & Electric Holding (Group) Co., Ltd. holds 74.46% of the company's domestic shares and 8.42% of its H-shares, making it the largest shareholder[88] - The Chongqing State-owned Assets Supervision and Administration Commission holds a combined 92.42% of the company's domestic shares through its subsidiaries[88] - The Bank of New York Mellon holds 7.93% of the company's H-shares, acting as a custodian and controlling entity[89] Other Financial Information - Total comprehensive income for the first half of 2024 was RMB 274.3 million, with RMB 253.97 million attributable to shareholders of the parent company[5] - Comprehensive income for the first half of 2024 was RMB 274,311,512.04[8] - Comprehensive income for 2023 totaled RMB 291,139,525.12, with a net profit attributable to parent company shareholders of RMB 303,626,849.13[9] - The company's registered capital remained unchanged at RMB 3,684,640,154 as of June 30, 2024[13] - The company has no significant contingent liabilities as of June 30, 2024[82] - The company has implemented a treasury policy to centralize financial resources across subsidiaries, utilizing financial instruments for low-cost financing[84] - The company faces foreign exchange risks primarily involving HKD, GBP, and USD, with a hedging management system in place to mitigate these risks[85] - The company's board of directors appointed Yue Xiangjun, an executive director and general manager, to temporarily act as chairman and legal representative until a new chairman is elected[81] - No purchase, sale, or redemption of the company's listed securities occurred during the six months ended June 30, 2024[92] - No significant acquisitions or disposals of subsidiaries or associated companies were made during the six months ended June 30, 2024[92] - The Board of Directors does not recommend the payment of an interim dividend[93] - The interim results announcement is available on the company's website and the Stock Exchange website, with the interim report to be published by September 10, 2024[94]

Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB, representing a 15% year-over-year growth[2]. - Revenue for 2023 reached RMB 8,058,534, an increase of 11.85% compared to RMB 7,205,352 in 2022[18]. - The Group's revenue for the year ended December 31, 2023, reached approximately RMB 8,058.5 million, an increase of about 11.8% compared to the same period last year[24]. - The gross profit for the year ended December 31, 2023, amounted to approximately RMB 1,539.6 million, representing a rise of approximately 7.9% from the previous year[24]. - Profit for the year attributable to owners of the Company was RMB 303,627, a slight decrease of 2.16% from RMB 310,296 in 2022[18]. - The operating profit for 2023 was approximately RMB 376.2 million, representing a slight decrease of approximately 0.7% compared to RMB 379.0 million in 2022[156]. - Investment income for 2023 amounted to approximately RMB 300.1 million, a significant increase of approximately 30.7% compared to RMB 229.7 million in 2022, mainly driven by the profitability of the high-horsepower diesel engine business[161]. - The profit attributable to shareholders for 2023 was approximately RMB 303.6 million, a decrease of approximately 2.2% compared to RMB 310.3 million in 2022, with earnings per share remaining flat at approximately RMB 0.08[167]. Market Expansion and Strategy - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by the end of 2024[2]. - A strategic acquisition of a local competitor is anticipated to enhance operational efficiency and increase market penetration[2]. - The Group focused on technological innovation, product upgrading, and industrial development while actively expanding market presence in 2023[32]. - The Group is leveraging opportunities from the Chengdu-Chongqing Economic Circle and the new land and sea corridors in the western region to enhance its market strategy[32]. - The Group aims to optimize its core businesses in clean energy equipment and high-end smart equipment to promote high-end, intelligent, and green development in manufacturing[32]. - The company is actively exploring opportunities in emerging markets, particularly in Southeast Asia and countries along the Belt and Road[120]. Product Development and Innovation - New product launches are expected to contribute an additional 200 million RMB in revenue, with a focus on innovative technology solutions[2]. - The company aims to diversify its product offerings, with plans to introduce three new product lines by Q3 2024[2]. - The Group plans to develop new material processing equipment and high-end intelligent machine tools, leveraging the PTG Company in the UK as its European R&D and marketing center[130][131]. - The company launched 15 technological innovation research projects in the intelligent electronics and system integration business, including key technologies for collaborative welding robots and upgrades to the Luoding Industrial Internet Platform[127][128]. - The wind power blade business completed the design and process development of 9 new products, with 6 entering mass production, and achieved a weight reduction of more than 10%[111]. Financial Management and Cost Control - The company plans to implement cost-cutting measures aimed at reducing operational costs by 5% over the next year[2]. - Financial control will be optimized using the 5C value management model, focusing on cash management and reducing debt risks[44]. - The company implemented cost-saving measures, enhancing procurement and inventory management, resulting in improved labor productivity[67][69]. - The selling and administrative expenses for 2023 were approximately RMB 944.2 million, an increase of approximately 9.7% compared to RMB 860.8 million in 2022[154]. Research and Development - Research and development expenses increased by 30%, totaling 150 million RMB, to support new technology initiatives[2]. - The company invested approximately RMB 407 million in R&D, representing 5.1% of total revenue, and added 188 authorized patents, including 39 invention patents[72][74]. - The Group possesses 281 patented technologies and continues to invest in research and development, enhancing its competitive edge[92]. Customer Satisfaction and Service - Customer satisfaction ratings improved to 90%, reflecting the effectiveness of recent service enhancements[2]. - The Group achieved major customer orders of approximately RMB 2,600 million in 2023, with RMB 2,200 million from the wind power blade business[62]. Economic Outlook - Looking ahead to 2024, the Group anticipates ongoing challenges in global economic recovery, influenced by geopolitical conflicts and structural changes in world trade[33]. - The global economic recovery is expected to remain weak in 2024, with major economies diverging in growth and monetary policy trends[34]. - The company anticipates increased market demand for clean energy due to government emphasis on non-fossil energy development[117]. Asset and Liability Management - Total assets less current liabilities increased to RMB 10,372,337 in 2023, up from RMB 9,767,701 in 2022, reflecting a growth of 6.19%[18]. - Total liabilities as of December 31, 2023, were approximately RMB 9,246.3 million, an increase of approximately RMB 35.4 million from RMB 9,210.9 million as of December 31, 2022[184]. - The current ratio improved to 1.60:1 as of December 31, 2023, compared to 1.51:1 as of December 31, 2022[188]. - The gearing ratio decreased to 25.0% as of December 31, 2023, down from 26.7% as of December 31, 2022[189].

Financial Performance - The total revenue reached approximately RMB 8,058.5 million, an increase of about 11.8% compared to the previous year[2]. - Gross profit was approximately RMB 1,539.6 million, up by about 7.9% year-on-year[2]. - Profit attributable to shareholders was approximately RMB 303.6 million, a slight decrease of about 2.2%[2]. - Earnings per share were approximately RMB 0.08, unchanged from the previous year[5]. - The total comprehensive income was RMB 291.1 million, down from RMB 330.4 million in the previous year[5]. - The company reported a decrease in other comprehensive income after tax, amounting to RMB -48.7 million compared to RMB 10.3 million in the previous year[4]. - Net profit for the year was RMB 339.8 million, compared to RMB 320.1 million in the previous year[4]. - Total revenue for 2023 reached RMB 7,490,731,809.89, an increase from RMB 6,222,665,625.31 in 2022, representing a growth of approximately 20.4%[15]. - The total net profit for the period was reported at approximately $258.26 million, reflecting a decrease compared to the previous period[21]. - The net profit attributable to the parent company's shareholders for the year was RMB 303,626,849.13, with a basic earnings per share of RMB 0.08[49]. Operating Costs and Expenses - Total operating costs amounted to RMB 8,004.7 million, an increase from RMB 7,104.5 million in the previous year[3]. - Research and development expenses increased to RMB 407.5 million from RMB 343.0 million, reflecting a focus on innovation[3]. - Sales expenses for the year amounted to RMB 287,908,338.64, compared to RMB 266,001,522.49 in the previous year, indicating an increase of about 8.25%[30]. - Management expenses increased to RMB 656,279,297.37 from RMB 594,757,559.95, marking a rise of approximately 10.34%[31]. - Selling and administrative expenses increased by approximately RMB 83.4 million or 9.7% to about RMB 944.2 million, with selling expenses rising due to increased sales of wind turbine blades[71]. Assets and Liabilities - Total current assets as of December 31, 2023, were RMB 11,378.8 million, slightly up from RMB 11,296.4 million in the previous year[6]. - Total assets reached RMB 17,486,084,156.96, an increase from RMB 17,228,617,974.52 year-over-year[10]. - Total liabilities amounted to RMB 9,246,252,819.51, compared to RMB 9,210,896,034.30 in the previous year[9]. - The total current liabilities were RMB 7,113,746,605.84, a decrease from RMB 7,460,916,607.67 year-over-year[8]. - The company reported a year-end undistributed profit of RMB 3,404,126,480.53, up from RMB 3,220,571,231.28 at the beginning of the year[47]. Cash Flow - Net cash flow from operating activities for 2023 was RMB 145,763,617.81, down from RMB 239,066,694.91 in 2022, indicating a decline of about 38.9%[15]. - Cash inflow from investment activities totaled RMB 889,826,235.03 in 2023, slightly decreased from RMB 894,284,686.61 in 2022[15]. - Cash outflow from financing activities in 2023 was RMB 2,368,162,393.71, compared to RMB 1,790,721,372.18 in 2022, reflecting an increase of approximately 32.2%[16]. - The net cash flow from financing activities for 2023 was negative at RMB -366,537,714.35, compared to RMB -348,012,058.10 in 2022[16]. - Cash and cash equivalents at the end of 2023 amounted to RMB 2,181,163,417.65, up from RMB 2,160,065,586.94 at the end of 2022[16]. Market and Segment Performance - The group operates nine reportable segments, including Engine, General Machinery, Wind Turbine Blades, and Smart Manufacturing, among others[20]. - The financial services segment generated $99.36 million, down 31.24% from the prior period, with a gross margin of 84.87%[21]. - The smart manufacturing division reported revenue of $445.36 million, reflecting a decrease of 1.09% year-over-year, with a gross margin of 17.21%[21]. - The wind turbine blade segment achieved revenue of $2.26 billion, with a gross margin of 15.69%[21]. - The company anticipates continued market expansion and new product development in the upcoming quarters[21]. Research and Development - The company is focusing on enhancing its R&D capabilities to drive innovation and improve product offerings[21]. - Research and development expenses totaled RMB 407,466,824.38, an increase from RMB 343,012,354.11 in the previous year, reflecting a growth of approximately 18.85%[32]. - The company is actively pursuing new technologies and product development to maintain competitive advantage in the market[32]. Strategic Initiatives - The company aims to expand its market presence and enhance its product offerings in response to the ongoing economic recovery and demand growth in China[51]. - The company plans to implement a comprehensive strategy for resource integration, enhancing both internal and external collaborations to improve overall performance[57]. - The company is committed to advancing its talent development strategy, focusing on attracting and nurturing high-level technical talent to drive innovation[58]. - The company will strengthen risk management and compliance by enhancing integrated management of risk, internal control, and legal affairs[59]. Corporate Governance - The company has established an Audit and Risk Management Committee to review and monitor financial reporting procedures and internal control systems, consisting of three independent non-executive directors and one non-executive director[109]. - The company has a Remuneration Committee responsible for formulating the remuneration policy for directors and senior management, ensuring that executive directors do not participate in decisions regarding their own remuneration[110]. - The Nomination Committee is tasked with identifying and evaluating suitable candidates for the board, ensuring a formal and transparent process for appointing new directors[111].

Loan Portfolio - As of December 31, 2022, the total amount of loans issued by the financial company to non-listed members of the group was RMB 950.8 million, strictly within the annual limit approved by shareholders[2]. - The total amount of guarantee loans and mortgage loans accounted for approximately 52.04% and 40.41% of the financial company's total loan portfolio, respectively[2]. - The financial company's top five clients accounted for approximately 88.18% of the total loan amount as of the end of 2022[4]. - The financial company's loan portfolio included 125 loans involving 7 clients, with 2 clients having asset sizes exceeding RMB 1 billion, totaling RMB 388.8 million in loans[2]. Loan Performance - As of December 31, 2022, all loans were classified as normal, with no significant loan impairment situations reported[5]. - The impairment provision for loans as of the end of 2022 amounted to RMB 24.4 million, following the regulatory requirement of a 2.5% provision rate for normal loans[5]. Loan Terms - The interest rates for loans provided by the financial company ranged from 1.22% to 4.6% in 2022[2]. - The average maturity of outstanding loans was within two years, with RMB 833.4 million due within one year[4]. Risk Management - The financial company established a credit loss impairment model based on macroeconomic conditions and borrower credit ratings[5]. - The financial company's credit risk assessment is conducted by a committee composed of five members with backgrounds in finance, risk control, compliance, and law[2].

Financial Performance - Revenue for the six months ended June 30, 2023, amounted to approximately RMB 3,889.0 million, representing an increase of approximately 10.9% from the corresponding period of last year [24] - Gross profit for the same period reached approximately RMB 732.7 million, reflecting an increase of approximately 19.0% compared to the previous year [24] - Profit attributable to shareholders for the six months ended June 30, 2023, was approximately RMB 181.9 million, an increase of approximately 3.1% from the corresponding period of last year [24] - Basic earnings per share for the six months ended June 30, 2023, remained consistent at approximately RMB 0.05, unchanged from the previous year [24] - The gross profit for the first half of the year was approximately RMB732.7 million, an increase of approximately RMB116.8 million or 19.0% compared to RMB615.9 million for the same period last year [69] - The operating profit for the first half of the year was approximately RMB236.4 million, a decrease of approximately RMB5.0 million or 2.1% compared to RMB241.4 million for the same period last year [79] - Net profit for the first half of 2023 was RMB 202,814,310.53, an increase of 8.1% compared to RMB 187,586,196.84 in the same period of 2022 [143] - Total comprehensive income for the first half of 2023 was RMB 190,425.51 million, up from RMB 160,843.65 million in the first half of 2022, marking an increase of about 18.4% [146] Revenue Breakdown - The Group's revenue for the clean energy equipment business reached RMB 1,091.4 million, with a gross profit of RMB 308.6 million, showing an increase from RMB 1,000.5 million and RMB 272.8 million in the previous year [49] - Wind power blades generated revenue of RMB 1,055.8 million, with a gross profit of RMB 140.6 million, compared to RMB 910.8 million and RMB 29.7 million in the previous year [49] - Revenue from the clean energy equipment segment was approximately RMB 3,201.0 million, accounting for approximately 82.3% of total revenue, representing an increase of approximately 18.1% [68] - Revenue from the high-end smart manufacturing segment was approximately RMB 655.0 million, accounting for approximately 16.9% of total revenue, showing a decrease of approximately 12.9% [68] Investment and R&D - The Group will increase investment in R&D, aiming to enhance the proportion of R&D spending to drive technological innovation and product upgrades [39] - Research and development expenses rose to RMB 180,470,789.71 from RMB 146,040,802.66, reflecting a significant increase of 23.5% [143] - The company was awarded 89 new patents in the first half of the year, including 23 invention patents [53] - In the first half of the year, 31 new patents were granted to the CNC machine tool business, including 3 invention patents [61] Market Strategy and Development - The Group focused on clean energy equipment and high-end intelligent equipment, supporting the construction of 500 billion-level industrial clusters in intelligent manufacturing and 100 billion-level clusters in new energy [30] - The Group aims to enhance its comprehensive strength and core competitiveness, achieving steady growth in the first half of the year, laying a foundation for fulfilling annual targets set by the Board [30] - The Group's development strategy for the second half of the year includes promoting digital industrialization and industrial digitalization, focusing on the Chongqing modern manufacturing cluster [35] - The Group plans to strengthen market support and improve management efficiency as part of its key tasks for the second half of the year [36] Financial Position and Assets - Total assets of the Group amounted to approximately RMB 17,866.3 million, showing an increase of approximately RMB 648.5 million compared to RMB 17,217.8 million as at 31 December 2022 [87] - Total liabilities of the Group amounted to approximately RMB 9,768.4 million, showing an increase of approximately RMB 568.2 million compared to RMB 9,200.2 million as at 31 December 2022 [88] - Net current assets amounted to approximately RMB 4,407.6 million, showing an increase of approximately RMB 572.1 million compared to RMB 3,835.5 million as at 31 December 2022 [89] - The current ratio of the Group was 1.58:1 as at 30 June 2023, compared to 1.51:1 as at 31 December 2022 [90] Cash Flow and Financing - Net cash flow generated from operating activities was approximately RMB 23.3 million during the period, compared to approximately RMB 250.6 million for the same period last year [83] - Net cash flows from operating activities decreased significantly to RMB 23.33 million in H1 2023, compared to RMB 250.59 million in H1 2022, a decline of 90.7% [151] - Cash received from sales of goods and rendering of services increased to approximately RMB 3.52 billion in H1 2023, up from RMB 3.15 billion in H1 2022, representing a growth of 11.7% [151] - Cash paid for goods and services rose to RMB 2.82 billion in H1 2023, compared to RMB 2.37 billion in H1 2022, reflecting an increase of 18.8% [151] Corporate Governance and Compliance - The company has complied with the Corporate Governance Code as per the Listing Rules [112] - The audit and risk management committee confirmed that the interim results comply with applicable accounting standards, laws, and regulations [123] - The interim financial statements were reviewed by ShineWing Certified Public Accountants LLP, and no material misstatements were identified [130] - The company has made appropriate disclosures regarding its financial performance and compliance with regulations [123] Future Outlook - The Group aims to implement the "14th Five-Year Plan" focusing on high-quality development and innovation as the core driving force [46] - The company is focusing on enhancing its market position through strategic investments and potential acquisitions in the machinery sector [160] - Future outlook includes continued investment in new technologies and market expansion initiatives to drive growth [160]

Financial Performance - The total revenue for the six months ended June 30, 2023, reached approximately RMB 3,889.0 million, an increase of about 10.9% compared to the same period last year[2]. - The gross profit for the same period was approximately RMB 732.7 million, representing a year-on-year increase of about 19.0%[2]. - The profit attributable to shareholders for the six months ended June 30, 2023, was approximately RMB 181.9 million, up about 3.1% from the previous year[2]. - Basic earnings per share for the period remained consistent at approximately RMB 0.05, unchanged from the same period last year[2]. - The net profit for the six months ended June 30, 2023, was RMB 202.8 million, compared to RMB 187.6 million in the previous year, reflecting a growth[4]. - The total comprehensive income for the period was RMB 190.4 million, compared to RMB 160.8 million in the same period last year[4]. - The group's total revenue for the first half of 2023 was approximately RMB 3,889.0 million, an increase of about 10.9% compared to approximately RMB 3,506.3 million in the same period last year[61]. - The group's gross profit for the first half of 2023 was approximately RMB 732.7 million, an increase of about 19.0% from approximately RMB 615.9 million in the same period last year[62]. Assets and Liabilities - As of June 30, 2023, total current assets increased to RMB 11,985,143,724.51 from RMB 11,296,414,469.07 at the end of 2022, representing a growth of approximately 6.09%[5]. - Total liabilities increased to RMB 9,768,394,960.79 from RMB 9,200,197,408.09, reflecting a rise of approximately 6.19%[6]. - The total assets of the company reached RMB 17,866,331,883.08, up from RMB 17,217,824,908.47, indicating an increase of about 3.78%[6]. - The total accounts receivable and other receivables amounted to approximately RMB 4,017.3 million, an increase of about RMB 634.0 million from RMB 3,383.3 million at the end of 2022[72]. - The total liabilities as of June 30, 2023, were approximately RMB 9,768.4 million, an increase of about RMB 568.2 million from RMB 9,200.2 million at the end of 2022[75]. - The total bank and other borrowings as of June 30, 2023, amounted to approximately RMB 3,005.7 million, an increase of about RMB 98.5 million from RMB 2,907.2 million at the end of 2022[77]. Cash Flow - Operating cash flow for the first half of 2023 was RMB 23,330,238.44, a significant decrease compared to RMB 250,590,796.39 in the first half of 2022[9]. - The company reported a decrease in cash inflow from operating activities, primarily due to increased payments for goods and services, totaling RMB 2,818,393,280.26 in the first half of 2023[9]. - The company incurred cash outflows of RMB 1,294,687,223.28 from financing activities in the first half of 2023, compared to RMB 1,025,894,479.85 in the same period of 2022, reflecting an increase of about 26.1%[11]. - The net cash flow from operating activities for the period was approximately RMB 23.3 million, a decrease from RMB 250.6 million in the same period last year[71]. Research and Development - The company reported a research and development expense of approximately RMB 180.5 million, an increase from RMB 146.0 million in the same period last year[3]. - The company aims to enhance its research and development efforts in new technologies to drive future growth[12]. - The company received 89 new patents in the first half of the year, including 23 invention patents[58]. - The group obtained 31 new patents in the first half of 2023, including 3 invention patents[59]. Market and Business Segments - The company plans to continue expanding its market presence in clean energy and high-end intelligent equipment manufacturing[12]. - The clean energy equipment segment generated revenue of approximately RMB 3,201.0 million in the first half of 2023, an increase of about 18.1% compared to the same period last year[57]. - The high-end intelligent equipment segment's revenue was approximately RMB 655.0 million, a decrease of about 12.9% year-on-year[61]. - The industrial services segment reported revenue of approximately RMB 32.5 million, down approximately 26.6% compared to the previous year, primarily due to a reduction in trade business[60]. - The wind blade business secured new orders worth RMB 1,396 million, while the cable business obtained orders exceeding RMB 600 million from major clients[57]. - The company plans to continue expanding into new markets such as hydrogen energy and international projects in the hydropower sector in the second half of the year[58]. Financial Policies and Accounting - The financial statements are prepared based on the going concern principle, reflecting the group's financial position, operating results, and cash flows accurately[16]. - The accounting policies include provisions for bad debts, inventory measurement, and revenue recognition, tailored to the group's operational characteristics[15]. - The group recognizes revenue when the performance obligations in the contract are fulfilled, indicating control over the goods or services[22]. - The group assesses significant accounting estimates and judgments continuously, which may lead to substantial adjustments in the carrying amounts of assets and liabilities in the next accounting period[31]. Shareholder Information - The company’s registered capital remains at RMB 3,684,640,154 as of June 30, 2023, unchanged from the previous year[12]. - The board does not recommend the distribution of interim dividends[89]. - 重庆机电控股（集团）公司持有1,924,225,189股内资股，占已发行内资股总数的74.46%[84]. - 重庆市国有资产监督管理委员会控制的权益为2,388,490,217股内资股，占已发行股份总数的64.82%[84].

Company Overview - The company reported a financial year-end of December 31, 2022, with a restated financial summary for the years 2018 to 2022[9]. - The stock code for the company is 02722, listed on the Stock Exchange of Hong Kong Limited[8]. - The principal place of business in Hong Kong is located at Room 1204-06, 12th Floor, The Chinese Bank Building, 61 Des Voeux Road Central, Central, Hong Kong[8]. - The company has authorized representatives including Mr. Yang Quan and Ms. Chiu Hoi Shan, with contact information provided for investor relations[6]. - The company’s website is www.chinacqme.com, serving as a resource for stakeholders to access information and updates[8]. Financial Performance - Revenue for the year reached RMB 7,205,352, an increase from RMB 6,366,966 the previous year, representing a growth of approximately 13.1%[10]. - Profit before income tax was RMB 381,581, compared to RMB 330,142 in the prior year, reflecting a growth of about 15.6%[10]. - Basic earnings per share attributable to owners of the Company was RMB 0.08, consistent with the previous year[10]. - Non-current assets totaled RMB 5,921,410, showing a slight increase from RMB 5,885,672 year-over-year[10]. - Current assets increased to RMB 11,296,414 from RMB 10,849,713, indicating a growth of approximately 4.1%[10]. - Current liabilities rose to RMB 7,460,916, up from RMB 6,589,631, which is an increase of about 13.2%[10]. - Net assets attributable to owners of the Company reached RMB 7,558,379, up from RMB 7,348,945, representing a growth of approximately 2.8%[10]. - Proposed final dividends amounted to RMB 110,539, unchanged from the previous year[10]. Strategic Focus - The Company is focusing on expanding its clean energy equipment segment as part of its strategic initiatives[12]. - The Group focused on clean energy equipment and high-end smart equipment, while actively expanding its industrial services business[20]. - The Group aims to improve operational quality and efficiency while navigating challenges in the economic environment, with a focus on steady progress and innovation[27]. - The Group plans to enhance its industrial layout by focusing on clean energy sectors such as wind, nuclear, and hydrogen energy, promoting a synergistic development of the clean energy industrial chain[32]. - The Group is committed to enhancing its core competitiveness and sustainable development potential through innovation-driven strategies[20]. Market Conditions - Looking ahead to 2023, global merchandise trade is expected to slow significantly, increasing the risk of economic recession[23]. - The Chinese government aims to promote high-quality development and stabilize economic growth through various strategies, including expanding domestic demand[24]. - The Group's overall performance remained stable, with good growth in total profit and new orders despite external challenges[21]. Research and Development - Increased R&D investment is planned to solve key technological challenges and enhance core competitiveness, with a focus on cultivating specialized and innovative enterprises[34]. - The Group invested approximately RMB 343 million in R&D expenses, representing 4.76% of total revenue, and added 260 authorized patents, including 26 invention patents[53]. - The Group's R&D efforts and technological innovations are aimed at promoting the implementation of the "14th Five-Year Plan" with high quality[53]. Operational Efficiency - The Group will accelerate the green and low-carbon transition by introducing strategic partners and developing demonstration projects in clean energy[36]. - Financial control measures will be implemented to reduce costs and increase efficiency, with a target to keep the asset-liability ratio within a reasonable range[30]. - The overall business performance will be improved through the revitalization of existing assets and the disposal of idle assets[36]. Human Resources - The Group will focus on talent development, enhancing labor productivity, and optimizing the talent structure to support its "14th Five-Year" development plan[37]. - The Group is focused on upgrading its technical talent base and optimizing the remuneration and performance review system for management and employees[144]. - The Group continues to foster recruitment of technical and management personnel with significant professional experience[144]. Leadership and Management - The Group's executive management includes experienced personnel with extensive backgrounds in various sectors, enhancing strategic decision-making capabilities[149]. - The management structure includes a diverse team of directors and senior management with a range of expertise in engineering and business operations[149]. - The company emphasizes the importance of independent directors with diverse backgrounds in finance and industry[176]. Financial Position - As of December 31, 2022, the company's distributable reserves amounted to approximately RMB 2,771.5 million[116]. - Cash and bank deposits as of December 31, 2022, totaled approximately RMB 2,597.0 million, an increase of approximately RMB 418.1 million or 19.2% compared to RMB 2,178.9 million as of December 31, 2021[117]. - The total assets of the Group as of December 31, 2022, amounted to approximately RMB 17,217.8 million, an increase of approximately RMB 482.4 million or 2.9% compared to RMB 16,735.4 million as of December 31, 2021[123]. - Total liabilities as of December 31, 2022, were approximately RMB 9,200.2 million, an increase of approximately RMB 278.5 million or 3.1% compared to RMB 8,921.7 million as of December 31, 2021[124]. Subsidiaries and Market Expansion - The Group's structure includes 53 subsidiaries, indicating a robust organizational framework for operational efficiency[13]. - The Group's market expansion is supported by regional development plans such as the "Belt and Road" initiative and the "Chengdu-Chongqing Economic Circle"[63]. - Several subsidiaries were recognized as "Little Giant" enterprises, indicating their specialization and innovation capabilities, which enhances the Group's market position[71].

Revenue and Loan Scale - The total revenue of the financial company at the end of 2021 was RMB 676.2 million, accounting for approximately 0.91% of the group's consolidated revenue[1] - The total loan scale provided by the financial company in 2021 was RMB 1.953 billion, strictly controlled within the annual limit approved by shareholders[2] - Four customers had loan balances exceeding 10% of the total loan balance, involving a total loan scale of RMB 1.249 billion[2] - The top five customers accounted for approximately 73.77% of the total loan scale of the financial company at the end of 2021[2] Loan Portfolio Composition - As of the end of 2021, guaranteed loans and secured loans accounted for approximately 62.89% and 16.93% of the total loan portfolio, respectively[2] Loan Performance and Risk - The loan impairment provision balance at the end of 2021 was RMB 48,869,823.05, an increase of RMB 1,947,665.82 compared to the end of 2020[3] - All loans issued by the financial company were recoverable on time, with no overdue loans reported[5] Interest Rates and Credit Assessment - The financial company's loan interest rates ranged from 3.3% to 6.003% in 2021[2] - The financial company's credit risk assessment is conducted by a credit review committee composed of five members with backgrounds in finance, risk compliance, and law[4] Loan Collection Procedures - The financial company has established a loan collection procedure that includes normal maturity loans and overdue loan collection[5]

Financial Performance - The Group's revenue for the six months ended June 30, 2022, was approximately RMB3,506.3 million, a decrease of about 7.2% compared to the same period last year[24]. - Gross profit for the same period was approximately RMB615.9 million, representing a decrease of approximately 22.4% from the corresponding period last year[24]. - Profit attributable to shareholders for the six months ended June 30, 2022, amounted to approximately RMB176.4 million, an increase of approximately 27.5% from the corresponding period last year[25]. - Basic earnings per share for the six months ended June 30, 2022, was approximately RMB0.05, reflecting an increase of approximately 25% from the same period last year[25]. - The overall gross profit margin decreased by 3.4 percentage points compared to the same period last year, but is expected to remain stable in the second half of 2022[72]. - The operating profit for the six months ended 30 June 2022 was approximately RMB241.4 million, an increase of approximately RMB76.8 million or 46.7% compared to RMB164.6 million for the same period last year[81]. - Net profit for the first half of 2022 reached RMB 187.59 million, an increase of 21.93% compared to RMB 153.82 million in the same period of 2021[145]. Economic Context - In the first half of 2022, China's GDP grew by 2.5% year-on-year despite the recurring epidemic and economic challenges[29]. - The international economy is expected to continue declining in the second half of the year due to various global challenges[33]. - The Chinese government is committed to stabilizing the economy and promoting healthy development through supportive policies[33]. Strategic Initiatives - The Group plans to continue advancing the "14th Five-Year Plan" and focus on high-quality development in the second half of the year[37]. - Key tasks for the second half include aggressively securing market orders and strengthening operation control, particularly in clean energy and high-end intelligent equipment sectors[38]. - The Group aims to improve its operational management and enhance product quality and delivery capacity through refined management practices[38]. - The Group will strengthen the integration of business and finance to improve financial management and risk control capabilities[38]. - The Group aims to enhance market orders by focusing on national strategies such as "carbon peak and carbon neutrality" and "Chengdu-Chongqing economic circle construction" to achieve breakthroughs in effective orders and improve operational management[39]. - The Group plans to accelerate the research and demonstration of clean energy projects, including wind, nuclear, and hydrogen energy, to promote the development of a new industrial pattern[41]. - The Group will strengthen cooperation with strategic partners in the new energy sector to expedite the market deployment of key projects[42]. Segment Performance - The clean energy equipment segment reported operating income of approximately RMB2,709.5 million, a decrease of about 6.5% compared to the same period last year[55]. - Gross profit for the clean energy equipment segment was approximately RMB461.8 million, down approximately RMB159.0 million or 25.6% from RMB620.8 million in the same period last year[55]. - The industrial pump business secured large diaphragm pump orders worth RMB180 million, contributing to overall growth[55]. - The gas compressor business achieved orders of RMB74 million in the shale gas market, driving good growth across various businesses[55]. - The intelligent equipment segment's operating income reached approximately RMB752.0 million, a decrease of about 11.5% year-on-year[62]. - The loss in the high-end smart equipment segment was approximately RMB30.2 million, significantly reduced from a loss of RMB64.6 million in the same period last year[62]. Financial Position - As at 30 June 2022, total accounts receivables and other receivables amounted to approximately RMB3,932.5 million, an increase of approximately RMB465.4 million compared to RMB3,467.1 million as at 31 December 2021[88]. - As at 30 June 2022, total accounts payables and other payables amounted to approximately RMB2,488.7 million, an increase of approximately RMB181.9 million compared to RMB2,306.8 million as at 31 December 2021[90]. - Total assets as at 30 June 2022 amounted to approximately RMB16,813.6 million, an increase of approximately RMB78.2 million compared to RMB16,735.4 million as at 31 December 2021[92]. - The total liabilities of the Group as of June 30, 2022, were approximately RMB8,955.9 million, reflecting an increase of approximately RMB34.2 million compared to RMB8,921.7 million as of December 31, 2021[95]. - The current ratio as of June 30, 2022, was 1.59:1, compared to 1.65:1 as of December 31, 2021[97]. - The gearing ratio as of June 30, 2022, was 26.8%, slightly down from 27% as of December 31, 2021[98]. Cash Flow and Investments - The net cash flow generated from operating activities during the period was approximately RMB250.6 million, compared to a net cash flow of approximately RMB-128.5 million for the same period last year[87]. - Cash inflows from investing activities totaled RMB408,946,640.14 in January-June 2022, compared to RMB366,672,767.37 in the same period of 2021, marking an increase of approximately 11.53%[149]. - Cash flows from financing activities resulted in a net outflow of RMB-138,047,543.47 in January-June 2022, contrasting with a net inflow of RMB17,171,573.51 in January-June 2021[150]. Human Resources and Governance - As of June 30, 2022, the Group had a total of 7,859 employees, an increase from 7,416 employees as of June 30, 2021, reflecting a growth of approximately 5.95%[112]. - The Group emphasizes the importance of human resources reform to create a talent-sharing management platform[42]. - The Company has adopted and complied with the Corporate Governance Code as per the Listing Rules of the Hong Kong Stock Exchange[120]. Compliance and Audit - The audit and risk management committee reviewed the interim results and confirmed compliance with applicable accounting standards and regulations[127]. - The interim financial statements were reviewed by ShineWing Certified Public Accountants LLP, confirming no material misstatements were found[132]. - The interim results announcement has been published on the Company's website and the Stock Exchange[129].