Cost Analysis - Raw material costs increased by approximately RMB 41.8 million, representing the largest component of sales and service costs [2] - Subcontracting costs for raw materials decreased by approximately RMB 46.0 million, also a significant part of sales and service costs [3] Financial Corrections - The financial review section of the annual performance announcement contains a correction regarding material costs due to a clerical error [4]

Revenue and Profitability - Revenue from the building materials sector reached approximately RMB 730.0 million for the year ended December 31, 2023, up from RMB 573.1 million in 2022, representing a year-on-year increase of 27.4%[1] - For the fiscal year ending December 31, 2023, the company's revenue was approximately RMB 1,729.5 million, an increase of 9.0% compared to RMB 1,587.4 million in the previous year[22] - The gross profit for the fiscal year ending December 31, 2023, was approximately RMB 374.6 million, representing a 29.8% increase from RMB 288.5 million in the previous year[26] - The pre-tax profit for the fiscal year ending December 31, 2023, was approximately RMB 181.3 million, an increase of 25.4% compared to the previous year[35] - The total profit and comprehensive income attributable to the company's owners for the fiscal year ending December 31, 2023, was approximately RMB 143.5 million, an increase of 17.6% from RMB 122.1 million in the previous year[29] Revenue Sources and Client Focus - Revenue from non-building materials clients accounted for approximately 59.1% of total equipment manufacturing revenue in 2023, down from 70.2% in 2022, indicating a strategic shift in client focus[17] - Revenue from "Belt and Road" countries represented approximately 21.2% of total revenue in 2023, up from 10.9% in 2022, highlighting market expansion efforts[17] - The company plans to continue leveraging the "Belt and Road" initiative to explore production line construction opportunities in emerging markets[20] Costs and Expenditures - The company's operating costs increased by approximately RMB 56.1 million or 4.3% to RMB 1,355.0 million, primarily due to increased sales[25] - Research expenditure rose by approximately RMB 8.4 million or 30.5% to about RMB 36.0 million for the year ended December 31, 2023, mainly due to increased employee costs and materials for research activities[14] - The group incurred employee costs of approximately RMB 137.7 million for the year ended December 31, 2023, compared to RMB 134.9 million in 2022[69] Financial Position and Assets - The company's net current assets as of December 31, 2023, were approximately RMB 381.6 million, with a current ratio of 125.8%[30] - Trade receivables decreased by approximately RMB 148.6 million or 24.1% to about RMB 467.2 million as of December 31, 2023[46] - The group had cash and cash equivalents of approximately RMB 378.9 million, an increase from RMB 345.7 million as of December 31, 2022[61] - The group's debt-to-equity ratio improved to 170.4% as of December 31, 2023, down from 273.5% as of December 31, 2022, due to a reduction in total liabilities[62] Project and Operational Highlights - The company launched several overseas projects in countries including Tajikistan, Uzbekistan, Bangladesh, Kenya, and Morocco, with a successful production line in Tajikistan producing 3,300 tons per day[39] - The company generated 5.4 million Kwh of solar power, significantly reducing external electricity costs and promoting clean production[38] - The company reported a fair value change of RMB 2,288 thousand for structured deposits, representing 2.1% of total assets as of December 31, 2023[84] Compliance and Governance - The company has implemented measures to comply with environmental regulations, including conducting environmental impact assessments and adhering to emission standards[183] - The controlling shareholder has confirmed compliance with a non-competition agreement throughout the reporting period[200] - There are no interests held by directors in businesses that directly or indirectly compete with the company or its subsidiaries[199] Research and Development - The company is actively involved in the development of energy-saving and environmental protection technologies, collaborating with Tsinghua University on key technologies for clean utilization of low-rank coal[18] - As of December 31, 2023, the company held 140 authorized patents, including 65 invention patents and 75 utility model patents, with 86 patent applications pending approval[18] Financial Instruments and Credit Risk - The group assesses expected credit losses for financial assets, including trade receivables and contract assets, based on changes in credit risk since initial recognition[111] - The expected credit loss amount is updated at each reporting date to reflect changes in credit risk[111] - The group recognizes lifetime expected credit losses for trade receivables and contract assets with significant balances or high credit risk[112] Contractual Obligations and Revenue Recognition - Revenue from production line construction is recognized over time based on the completion stage of contracts, reflecting the company's performance in transferring control of goods and services[166] - Customers typically prepay 30% of the total contract amount before work begins, creating a contract liability until recognized revenue exceeds the prepayments[167] - The company offers a 12-month warranty period after the production line is operational or the final acceptance certificate is issued[167]

Financial Performance - Revenue for the year ended December 31, 2023, was RMB 1,729,530,000, an increase of 8.9% from RMB 1,587,414,000 in 2022[5] - Gross profit for the same period was RMB 374,559,000, compared to RMB 288,538,000 in the previous year, reflecting a significant increase[2] - Net profit for the year was RMB 143,503,000, up from RMB 122,060,000 in 2022, representing a growth of 17.6%[6] - Basic earnings per share increased to RMB 28.57 from RMB 24.44, marking a rise of 13.8%[31] - Other income rose to RMB 18,077,000 from RMB 9,715,000, indicating an increase of 86.5%[2] - The company reported a total comprehensive income attributable to owners of the company of RMB 142,866,000, compared to RMB 122,220,000 in the previous year[30] - The pre-tax profit for the year ended December 31, 2023, was RMB 181,334,000, compared to RMB 144,636,000 in 2022, representing an increase of approximately 25.4%[61] - Profit and total comprehensive income increased by approximately RMB 21.4 million or 38.4% to approximately RMB 143.5 million for the year ended December 31, 2023[141] Expenses and Costs - Research expenses increased to RMB 35,982,000 from RMB 27,574,000, reflecting a growth of 30.5%[2] - Total employee costs for the year were RMB 137,670,000, up from RMB 134,946,000 in 2022[77] - The company reported a total tax expense of RMB 37,831,000 for the year, compared to RMB 22,576,000 in 2022, reflecting an increase of approximately 67.5%[82] - Sales and service costs increased by approximately RMB 56.1 million or 4.3% to approximately RMB 1,355.0 million for the year ended December 31, 2023, mainly due to increased sales during the period[133] - Income tax expenses rose by approximately RMB 15.3 million or 67.6% to approximately RMB 37.8 million for the year ended December 31, 2023, with an effective tax rate increasing from 15.6% to 20.9%[140] Assets and Liabilities - Non-current assets decreased from RMB 717,485 thousand in 2022 to RMB 599,942 thousand in 2023, a decline of approximately 16.4%[32] - Current assets decreased from RMB 2,285,971 thousand in 2022 to RMB 1,860,462 thousand in 2023, representing a reduction of about 18.6%[32] - Total liabilities decreased from RMB 2,147,126 thousand in 2022 to RMB 1,478,830 thousand in 2023, a decrease of approximately 31.2%[32] - The net current asset value increased significantly from RMB 138,845 thousand in 2022 to RMB 381,632 thousand in 2023, an increase of about 174.5%[32] - Total equity rose from RMB 804,756 thousand in 2022 to RMB 910,111 thousand in 2023, reflecting an increase of approximately 13.1%[33] - The company's debt-to-equity ratio improved to 170.4% as of December 31, 2023, down from 273.5% a year earlier, reflecting a reduction in total liabilities[169] Cash Flow and Financing - Cash and cash equivalents increased to approximately RMB 378.9 million as of December 31, 2023, compared to approximately RMB 345.7 million as of December 31, 2022[146] - Net cash generated from operating activities was approximately RMB 46.4 million for the year ended December 31, 2023, compared to RMB 44.0 million for the previous year[147] - The group had bank financing of approximately RMB 663.5 million, of which approximately RMB 102.6 million was utilized, leaving approximately RMB 560.9 million unutilized[194] - The group's bank borrowings as of December 31, 2023, were approximately RMB 55.3 million, down from RMB 105.4 million as of December 31, 2022[194] Trade Receivables and Impairment - As of December 31, 2023, the company's trade receivables amounted to RMB 372,278,000, net of impairment losses of RMB 39,058,000[87] - The company's expected credit loss provision for trade receivables was RMB 38,501,000, reflecting a significant increase in impairment losses[104] - The impairment loss provision for trade receivables increased to RMB 52.11 million in 2023 from RMB 27.23 million in 2022, showing a significant rise of 91.5%[119] - Trade receivables, net of impairment losses, totaled RMB 367.39 million as of December 31, 2023, compared to RMB 339.02 million in 2022, indicating an increase of 8.4%[111] Business Strategy and Market Presence - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[1] - The company plans to leverage the "Belt and Road" initiative to explore production line construction opportunities in countries with strong demand for building materials and related production equipment[103] - The company is actively expanding its business into potential markets along the "Belt and Road" initiative, with revenue from these countries accounting for approximately 21.2% of total revenue in 2023[154] - The company is focusing on R&D in energy-saving and environmental protection technologies, collaborating with Tsinghua University on key technologies for efficient and clean utilization of low-rank coal[155] Research and Development - The company's research and development efforts have expanded its product and service offerings to other industries, including metallurgy, chemicals, and environmental protection[101] - Research and development expenses for the year were RMB 18,155,000, an increase from RMB 16,664,000 in 2022[78] Employee and Workforce - The company has 1,092 employees as of December 31, 2023, a slight decrease from 1,100 employees a year earlier[177] Inventory and Contract Liabilities - Inventory decreased by approximately RMB 259.7 million or 25.9% to approximately RMB 743.1 million as of December 31, 2023, with inventory turnover days reduced from 257 days to 232 days[143] - Contract liabilities decreased by approximately RMB 419.4 million or 33.3% to about RMB 838.4 million as of December 31, 2023, due to increased capacity and faster completion of existing contracts[167]

Revenue and Profitability - For the six months ended June 30, 2023, the group recorded revenue of approximately RMB 843.5 million, a year-on-year decrease of 1.8%, while profit attributable to owners increased by 5.4% to approximately RMB 63.9 million[21]. - The total revenue for the six months ended June 30, 2023, was RMB 843,542 thousand, compared to RMB 859,204 thousand for the same period in 2022, representing a decrease of approximately 1.9%[50]. - The gross profit for the same period was approximately RMB 144.4 million, representing a decrease of about 4.5% year-on-year[162]. - The profit before tax for the six months ended June 30, 2023, was approximately RMB 78.0 million, an increase of about 10.3% compared to the previous year[162]. - The company's profit attributable to owners for the six months ended June 30, 2023, was RMB 63,922,000, an increase of 3.7% from RMB 60,783,000 in the same period of 2022[111]. Income and Expenses - Other income increased significantly by approximately RMB 2.2 million or 103.8% to approximately RMB 4.4 million for the six months ended June 30, 2023, mainly due to increased government subsidies[12]. - Other income decreased by approximately RMB 7.8 million or 55.5% to approximately RMB 6.2 million, primarily due to a significant reduction in foreign exchange gains[22]. - Administrative expenses increased by approximately RMB 7.0 million or 42.9% to approximately RMB 23.4 million, mainly due to higher professional service fees and employee costs[23]. - Income tax expenses rose by approximately RMB 4.0 million or 39.6% to approximately RMB 14.1 million, with effective tax rates of 18.1% and 15.6% for the periods ended June 30, 2022, and June 30, 2023, respectively[24]. Assets and Liabilities - As of June 30, 2023, the group's debt-to-equity ratio was 249.8%, down from 273.5% as of December 31, 2022, due to an increase in equity[27]. - Total assets less current liabilities amounted to approximately RMB 885.1 million, compared to RMB 856.3 million for the previous period[44]. - The company's total assets as of June 30, 2023, amounted to RMB 830,498 thousand, compared to RMB 715,696 thousand as of June 30, 2022, indicating a growth of approximately 16%[50]. - Trade payables as of June 30, 2023, were RMB 711,968,000, an increase of 4.5% from RMB 681,146,000 as of December 31, 2022[132]. Cash Flow and Financing - The net cash used in operating activities for the six months ended June 30, 2023, was RMB (38,519) thousand, compared to RMB (11,026) thousand for the same period in 2022, indicating a significant increase in cash outflow[46]. - The company generated RMB 129,426 thousand in net cash from investing activities for the six months ended June 30, 2023, compared to RMB (14,285) thousand for the same period in 2022, showing a positive turnaround[46]. - The company reported net cash used in financing activities of approximately RMB 49.4 million for the six months ended June 30, 2023, compared to a net cash generated of RMB 91,000 in the same period of 2022[192]. - As of June 30, 2023, the company had bank financing of approximately RMB 663.5 million, with RMB 122.0 million utilized[191]. Trade and Inventory - Inventory increased by approximately RMB 28.8 million or 2.9% to approximately RMB 1,031.6 million as of June 30, 2023, with inventory turnover days increasing from 257 days to 262 days[14]. - Trade receivables decreased to approximately RMB 127.7 million from RMB 136.5 million, while contract assets increased to RMB 121.7 million from RMB 78.0 million[44]. - Trade receivables amounted to RMB 337,477 thousand, with a provision for impairment of RMB 53,486 thousand, resulting in a net trade receivables of RMB 283,991 thousand[90]. - The total amount of trade receivables and notes receivable was RMB 552,210 thousand as of June 30, 2023[90]. Strategic Initiatives - The company plans to expand its products and services into metallurgy, chemicals, and environmental protection industries due to increasing environmental awareness and government initiatives[11]. - The company continues to explore potential markets in countries along the "Belt and Road" initiative, including Bangladesh, Burundi, South Korea, Uzbekistan, and Kazakhstan[9]. - The company is actively investing in R&D for energy-saving and environmental protection technologies, with 124 authorized patents as of June 30, 2023[177]. - The company plans to leverage the "Belt and Road" initiative to explore production line construction opportunities in emerging markets[165]. Workforce and Governance - The company employed 1,102 staff as of June 30, 2023, an increase from 1,078 staff as of June 30, 2022, indicating a growth in workforce[58]. - The company has established an audit committee consisting of three members, ensuring compliance with corporate governance codes[68]. Market Risks - The company is exposed to market risks related to exchange rates, interest rates, credit, and liquidity[193].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 China PengFei Group Limited 中 國 鵬 飛 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：3348） 截至二零二三年六月三十日止六個月 中期業績公告 摘要 • 截至二零二三年六月三十日止六個月的收益約為人民幣843.5百萬元，相較 去年同期減少約1.8%。 • 截至二零二三年六月三十日止六個月的毛利約為人民幣144.4百萬元，相較 去年同期減少約4.5%。 • 截至二零二三年六月三十日止六個月的除稅前溢利約為人民幣78.0百萬 元，相較去年同期增加約10.3%。 • 本公司擁有人應佔截至二零二三年六月三十日止六個月的溢利及全面收入 總額約為人民幣63.9百萬元，相較去年同期增加約5.4%。 ...

Financial Performance - For the year ended December 31, 2022, the company reported revenue of approximately RMB 1,587.4 million, a decrease of RMB 237.7 million or 13.0% compared to the previous year[53]. - The company's gross profit for the same period was approximately RMB 288.5 million, down RMB 14.5 million or 4.8%, while the gross profit margin increased from 16.6% to 18.2%[55]. - The profit before tax was approximately RMB 144.6 million, an increase of 11.3% compared to the previous year[61]. - The total profit and comprehensive income attributable to the owners of the company was approximately RMB 122.2 million, an increase of 11.9% year-on-year[61]. - The revenue from equipment manufacturing was RMB 1,424.6 million, a decrease of 4.0% from RMB 1,484.7 million in the previous year[84]. - Revenue from installation services decreased by 4.2% to approximately RMB 19.1 million from RMB 19.9 million in the previous year[85]. - The revenue from production line construction significantly decreased by 55.2% to approximately RMB 143.8 million from RMB 320.5 million in the previous year[70]. - The company recorded other income of approximately RMB 17.0 million for the year, compared to a loss of RMB 4.9 million in the previous year, primarily due to a turnaround from foreign exchange losses[56]. Cash Flow and Liquidity - The group's cash and cash equivalents were approximately RMB 345.7 million as of December 31, 2022, down from RMB 393.7 million as of December 31, 2021[6]. - The net cash generated from operating activities was approximately RMB 44.0 million for the year ended December 31, 2022, compared to RMB 204.9 million for the previous year[9]. - The group recorded a net cash outflow of approximately RMB 167.8 million from investing activities for the year ended December 31, 2022, compared to RMB 198.0 million for the previous year[9]. - The financing activities generated a net cash inflow of approximately RMB 72.3 million for the year ended December 31, 2022, compared to a net cash outflow of RMB 40.0 million for the previous year[9]. - The company did not face any liquidity issues as of December 31, 2022, maintaining sufficient cash and cash equivalents to manage operational funding[38]. Assets and Liabilities - The company's net current assets as of December 31, 2022, were approximately RMB 138.8 million, compared to RMB 95.1 million as of December 31, 2021[31]. - As of December 31, 2022, the total assets amounted to RMB 818,835,000, an increase from RMB 688,195,000 as of December 31, 2021, representing a growth of approximately 19%[165]. - The total value of restricted bank deposits and receivables pledged to banks was approximately RMB 143.1 million as of December 31, 2022, compared to RMB 49.0 million as of December 31, 2021[2]. - The group had unutilized bank financing of approximately RMB 405.1 million as of December 31, 2022[6]. - The company's liquidity ratio was 106.5% as of December 31, 2022, compared to 104.7% as of December 31, 2021[31]. Expenditures - As of December 31, 2022, the group's capital expenditure was approximately RMB 110.8 million, a decrease from RMB 120.8 million as of December 31, 2021[1]. - The company has fully utilized approximately RMB 118.0 million for investments in new production facilities and equipment as of December 31, 2022[21]. - The company invested RMB 16 million in 2022 to install 4 megawatts of distributed photovoltaic panels, significantly reducing electricity costs and promoting clean production[50]. Research and Development - Research and development expenses decreased by RMB 2.9 million or 9.6% to approximately RMB 27.6 million for the year ended December 31, 2022, compared to RMB 30.5 million for the year ended December 31, 2021, primarily due to a decrease in technical consulting fees[27]. - The company is focusing on carbon peak and carbon neutrality goals, accelerating project construction and green transformation initiatives[49]. - The company plans to enhance its research and development capabilities in energy-saving and environmental protection technologies, collaborating with Chinese research institutions[50]. Customer and Market Insights - Revenue from customers in "Belt and Road" countries accounted for approximately 10.9% of total revenue in 2022, down from 19.9% in 2021[50]. - The company plans to expand its customer base by entering emerging markets such as countries along the "Belt and Road" initiative, despite facing various risks and uncertainties[97]. - The company is actively exploring production line construction opportunities in emerging markets along the "Belt and Road" initiative[51]. Expenses and Costs - The company's operating expenses decreased by approximately RMB 4.9 million or 9.2% to about RMB 47.9 million for the year ended December 31, 2022, compared to RMB 52.8 million for the year ended December 31, 2021, mainly due to a reduction in professional service fees[25]. - Sales and service costs decreased by approximately RMB 223.2 million or 14.7% to about RMB 1,298.9 million for the year ended December 31, 2022, primarily due to a reduction in sales[86]. - The cost of raw materials accounted for approximately 79.6% of the total sales and service costs for the year ended December 31, 2022, compared to 69.7% in 2021, indicating a significant increase in material costs[117]. Shareholder Information - The board proposed a final dividend of RMB 0.074 per ordinary share, totaling RMB 37.0 million, subject to shareholder approval[94]. - The company declared dividends of RMB 33,000,000 for the year ended December 31, 2022, down from RMB 40,000,000 in 2021, reflecting a decrease of 17.5%[163]. Compliance and Governance - The consolidated financial statements are prepared in accordance with International Financial Reporting Standards, with a reasonable expectation of sufficient resources for continued operation in the foreseeable future[199]. - The financial statements are prepared based on historical cost, except for financial instruments measured at fair value[199]. - The company’s board has reasonable expectations regarding the group’s ability to continue as a going concern[199].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 China PengFei Group Limited 中 國 鵬 飛 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：3348） 截至二零二二年十二月三十一日止年度 年度業績公告 及建議採納經修訂及重列的大綱及細則 年度業績摘要 • 截至二零二二年十二月三十一日止年度的收益約為人民幣1,587.4百萬元， 相較去年減少13.0%。 • 截至二零二二年十二月三十一日止年度的毛利約為人民幣288.5百萬元，相 較去年減少約4.8%。 • 截至二零二二年十二月三十一日止年度的除稅前溢利約為人民幣144.6百萬 元，相較去年增加11.3%。 • 本公司擁有人應佔截至二零二二年十二月三十一日止年度的溢利及全面收 入總額約為人民幣122.2百萬元，相較去年增加11.9%。 ...

Fund Utilization - The net proceeds from the share issuance amounted to approximately HKD 150.0 million, with HKD 141.6 million utilized by December 31, 2021[3] - The remaining unutilized proceeds as of December 31, 2021, were HKD 8.4 million, indicating a significant deployment of funds[7] - The company plans to fully utilize the remaining unutilized proceeds by the end of 2022, despite delays caused by the COVID-19 pandemic[8] Investment Projects - Investment in the new rotary kiln project, including purchasing new machinery and constructing a new production facility, accounted for HKD 71.3 million[3] - The company aims to enhance the production capacity and efficiency of its rotary kiln and grinding equipment systems, with an investment of HKD 10.5 million for multi-tasking machine tools[5] Research and Development - Research and development for advanced roasting and pyrolysis technology involved joint studies with a Chinese engineering research institute, costing HKD 10.2 million[5] - The company has engaged in joint research with a well-known Chinese university to develop efficient low-rank coal pyrolysis technology, with expenditures of HKD 3.1 million[5] Marketing and Promotion - The company participated in local and international exhibitions and conferences, spending HKD 5.2 million on promotional activities[7] - The company upgraded and optimized its website to increase the number of available languages, costing HKD 1.7 million[7] Financial Reporting - The company confirmed that the supplementary information does not affect other data contained in the 2021 annual report[8]

Financial Performance - For the six months ended June 30, 2022, the revenue was approximately RMB 859.2 million, an increase of about 0.8% compared to the same period last year[15]. - The gross profit for the same period was approximately RMB 151.2 million, representing an increase of about 18.3% year-on-year[15]. - The profit before tax for the six months ended June 30, 2022, was approximately RMB 70.7 million, an increase of about 12.2% compared to the previous year[15]. - The total profit and comprehensive income attributable to the owners of the company for the same period was approximately RMB 60.8 million, reflecting a year-on-year increase of about 12.1%[15]. - The earnings per share attributable to ordinary shareholders for the six months ended June 30, 2022, was RMB 12.16 cents[15]. - Revenue for the six months ended June 30, 2022, was RMB 859,204 thousand, a slight increase of 0.85% compared to RMB 852,480,000 for the same period in 2021[144]. - The gross profit for the same period was RMB 151,242 thousand, up from RMB 127,897 thousand in 2021, indicating a significant increase of about 18.25%[102]. - The company's profit before tax was RMB 70,703 thousand, compared to RMB 63,037 thousand in the previous year, reflecting an increase of approximately 12.66%[102]. - The net profit attributable to the owners of the company for the period was RMB 60,783 thousand, which is an increase from RMB 54,198 thousand in 2021, marking a growth of around 12.93%[102]. Revenue Breakdown - Revenue from the building materials industry for the six months ended June 30, 2022, was approximately RMB 348.2 million, a decrease from RMB 414.0 million for the same period in 2021[22]. - Revenue from non-building materials customers accounted for approximately 69.9% of total equipment manufacturing revenue for the six months ended June 30, 2022, up from 65.4% in the same period of 2021[22]. - Revenue from equipment manufacturing increased by approximately RMB 59.2 million or 8.9% to approximately RMB 726.0 million for the six months ended June 30, 2022, compared to RMB 666.8 million in the same period of 2021[32]. - Revenue from installation services rose by approximately RMB 2.9 million or 74.6% to approximately RMB 6.7 million for the six months ended June 30, 2022, driven by increased demand from equipment manufacturing customers[32]. - Revenue from production line construction decreased by approximately RMB 55.4 million or 30.4% to approximately RMB 126.5 million for the six months ended June 30, 2022, primarily due to the completion of a project in Ivory Coast[33]. Strategic Focus - The company is focusing on green development by investing in distributed photovoltaic power generation projects and creating provincial-level green factories[18]. - The company plans to enhance its research and development efforts, strengthen its technology talent pool, and accelerate digital transformation to drive innovation[18]. - The company aims to capture opportunities in the rapidly growing electric vehicle market, particularly in the demand for core battery materials like lithium and nickel[18]. - The company is committed to maintaining safety and risk management while continuing to push for high-quality development in the industry[18]. - The company is focusing on expanding its business into potential markets along the "Belt and Road" initiative, with revenue from these countries accounting for approximately 20.3% of total revenue for the six months ended June 30, 2022[23]. - The company is actively involved in the construction of four production line projects, three of which are located in "Belt and Road" countries[23]. Assets and Liabilities - As of June 30, 2022, the company's debt-to-equity ratio was 287.0%, a slight decrease from 289.4% on December 31, 2021[53]. - The company's net current assets were approximately RMB 101.3 million as of June 30, 2022, with a current ratio of 104.8%[47]. - As of June 30, 2022, non-current assets totaled RMB 679,209 thousand, an increase from RMB 642,947 thousand as of December 31, 2021[104]. - Current assets amounted to RMB 2,194,992 thousand, compared to RMB 2,140,803 thousand at the end of 2021, reflecting a growth of approximately 2.5%[104]. - Total liabilities were RMB 2,093,709 thousand, slightly down from RMB 2,045,654 thousand, showing a decrease of about 2.5%[104]. - The company's equity attributable to owners increased to RMB 742,424 thousand from RMB 714,641 thousand, reflecting a growth of approximately 3.9%[107]. Cash Flow and Investments - For the six months ended June 30, 2022, the net cash generated from operating activities was approximately RMB 11.0 million, down from RMB 21.3 million for the same period in 2021[53]. - The net cash used in investing activities for the same period was approximately RMB 14.3 million, significantly lower than RMB 110.6 million in the previous year[53]. - The company reported a net cash inflow from financing activities of approximately RMB 91,000, compared to a net cash outflow of RMB 9,000 in the prior year[53]. - Capital expenditures for the six months ended June 30, 2022, were approximately RMB 49.9 million, down from RMB 59.2 million for the same period in 2021[63]. - The company utilized approximately RMB 148.5 million of the net proceeds from its share offering, with RMB 1.5 million remaining unutilized as of June 30, 2022[70]. Employee and Governance - The total employee cost for the six months ended June 30, 2022, was approximately RMB 61.7 million, an increase from RMB 53.8 million in the same period of 2021[67]. - The company has adopted the corporate governance code as per the listing rules and has complied with it during the reporting period[82]. - The company has established an audit committee to review the unaudited interim financial information, ensuring compliance with applicable accounting standards and regulations[96]. Other Financial Metrics - Other income significantly decreased by approximately RMB 2.0 million or 47.7% to about RMB 2.2 million for the six months ended June 30, 2022, primarily due to reduced interest income from bank deposits and government grants[36]. - The company recorded other income of approximately RMB 14.0 million for the six months ended June 30, 2022, compared to other losses of approximately RMB 0.1 million for the same period in 2021, mainly due to increased investment income and foreign exchange gains[37]. - Sales and distribution expenses increased by approximately RMB 19.4 million or 65.4% to about RMB 49.1 million for the six months ended June 30, 2022, due to higher transportation and port expenses[40]. - Administrative expenses decreased by approximately RMB 4.2 million or 20.6% to about RMB 16.3 million for the six months ended June 30, 2022, mainly due to reduced professional service fees[41].

Financial Performance - For the year ended December 31, 2021, the revenue was approximately RMB 1,825.1 million, an increase of 15.9% compared to the previous year[7] - The gross profit for the same period was approximately RMB 303.0 million, a decrease of about 1.8% year-on-year[7] - The profit before tax was approximately RMB 129.9 million, a decrease of 16.8% compared to the previous year[7] - The total profit and comprehensive income attributable to the owners of the company was approximately RMB 109.2 million, a decrease of 17.2% year-on-year[7] - The earnings per share attributable to ordinary shareholders was RMB 21.85 cents[7] - The board proposed a final dividend of RMB 0.066 per ordinary share, totaling RMB 33 million[7] - Sales and service costs increased by approximately RMB 256.3 million or 20.2% to about RMB 1,522.1 million for the year ended December 31, 2021, primarily due to increased sales[28] - Other income decreased by RMB 25.5 million or 70.8% to approximately RMB 10.5 million due to a reduction in government subsidies recognized in profit or loss[30] - Income tax expenses decreased by RMB 4.5 million or 18.6% to approximately RMB 19.6 million, with effective tax rates remaining stable at 15.4% and 15.1%[38] - Profit attributable to owners of the company decreased by RMB 22.7 million or 17.2% to approximately RMB 109.2 million[39] Revenue Breakdown - Revenue from the equipment manufacturing business rose by RMB 305.2 million or 25.9% to RMB 1,484.7 million for the year ended December 31, 2021, attributed to increased sales to major customers in mainland China[25] - Revenue from installation services decreased by RMB 3.4 million or 14.5% to approximately RMB 19.9 million, mainly due to reduced demand from equipment manufacturing customers[27] - Revenue from production line construction declined by RMB 51.2 million or 13.8% to approximately RMB 320.5 million, primarily due to a decrease in revenue from a production line project in Ivory Coast[27] - The construction industry accounted for approximately 49.6% of total revenue for the year ended December 31, 2021, compared to 48.7% in 2020[77] - Revenue from customers outside of China was approximately RMB 404.5 million for the year ended December 31, 2021, representing about 22.2% of total revenue, down from 25.8% in 2020[79] Strategic Initiatives - The company aims to strengthen its leading position in the rotary kiln and grinding equipment industry in China and globally, while actively exploring emerging markets along the "Belt and Road" initiative[10] - The company plans to enhance its management capabilities and promote sustainable development in alignment with high-quality growth goals[11] - The company aims to expand its customer base in the building materials industry, generating approximately RMB 905.3 million in revenue from this sector for the year ended December 31, 2021, compared to RMB 767.5 million in 2020[16] - The company is actively exploring production line construction opportunities in emerging markets and "Belt and Road" countries due to increasing demand for rotary kilns and grinding equipment[22] - The company plans to diversify its business into metallurgy, chemical, and environmental protection industries to expand its customer base[73] Research and Development - The company continues to invest in R&D focused on energy-saving and environmental protection technologies, collaborating with Tsinghua University on key technologies for clean utilization of low-rank coal[18] - Research expenses decreased by RMB 4.0 million or 11.5% to approximately RMB 30.5 million, mainly due to a reduction in technical consulting fees and material consumption[36] - Research and development for the latest roasting and pyrolysis technology applicable to rotary kilns involved an investment of HKD 10.2 million, with HKD 2.6 million utilized and the remainder expected to be fully deployed by Q2 2022[64] Financial Position - Current assets net value as of December 31, 2021, was approximately RMB 95.1 million, with a current ratio of 104.7%[40] - Trade receivables decreased by RMB 31.3 million or 4.3% to approximately RMB 688.8 million, while trade receivables turnover days improved to 73 days from 84 days[42] - As of December 31, 2021, the company's cash and cash equivalents amounted to approximately RMB 393.7 million, a decrease from RMB 434.8 million as of December 31, 2020[44] - The company recorded a net cash inflow from operating activities of approximately RMB 204.9 million for the year ended December 31, 2021, compared to RMB 192.6 million for the previous year[45] - The company's debt-to-equity ratio as of December 31, 2021, was 289.4%, down from 309.0% as of December 31, 2020, primarily due to an increase in equity[45] Corporate Governance - The company aims to enhance its corporate governance and financial operations through experienced board members[173][174][177][185] - The company has adopted the corporate governance code as per the listing rules and believes it has fully complied during the reporting period[189] - The board consists of four executive directors and three independent non-executive directors as of the report date[193] - The company has implemented a diversity policy for board members, considering various factors such as professional skills, industry experience, and gender[198] - The board is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[189] Environmental Commitment - The company is committed to reducing negative environmental impacts and complying with applicable environmental laws and regulations in China[97] - Measures implemented to avoid potential environmental issues include standard emissions of pollutants such as sulfur dioxide and dust, and conducting environmental impact assessments prior to production[98] - The company will publish its Environmental, Social, and Governance (ESG) report within five months after the fiscal year-end[99] Risks and Challenges - The company relies heavily on the macroeconomic conditions in China, which significantly impact its revenue and growth prospects[75] - The company faces potential fluctuations in raw material costs due to factors beyond its control, which could significantly impact financial performance[82] - The company’s strategic expansion into emerging markets may encounter various risks and uncertainties, potentially affecting future growth and profitability[79]