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） 須予披露交易 認購理財產品 認購事項 董事會欣然宣佈，於二零二五年八月六日（交易時段後），中國重器（本公司的間 接全資附屬公司）透過分銷商認購金額為28,000,000港元的華泰理財產品。 上市規則涵義 由於根據上市規則第14.07條計算得出有關認購事項的一項適用百分比率超過 5%但低於25%，故認購事項構成本公司的須予披露交易，並須遵守上市規則第 14.33條的申報及公告規定。 認購事項 董事會欣然宣佈，於二零二五年八月六日（交易時段後），中國重器（本公司的間 接全資附屬公司）透過分銷商認購金額為28,000,000港元的華泰理財產品。認購事 項由本集團的閒置資金撥付。 認購事項的主要條款概要載列如下： 附註1：「投資級別」指標準普爾賦予的A-2或以上的短期信貸評級或 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 中国鹏飞集团有限公司 (「本公司」) （於開曼群島註冊成立的有限公司） 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 03348 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.01 HKD | | 100,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.01 HKD | | 100,000,000 ...

Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue was approximately RMB 1,258.9 million, a decrease of 27.2% compared to the previous year[6] - The gross profit for the same period was approximately RMB 249.9 million, reflecting a decline of about 33.3% year-over-year[6] - The profit before tax was approximately RMB 86.0 million, down 52.6% from the previous year[6] - The total profit and comprehensive income attributable to the owners of the company was approximately RMB 67.3 million, a decrease of 52.9% compared to last year[6] - The earnings per share attributable to ordinary shareholders was RMB 0.1346[6] - Total revenue decreased by approximately RMB 470.7 million or 27.2% to about RMB 1,258.9 million for the year ending December 31, 2024, compared to RMB 1,729.5 million in 2023[16] - Equipment sales revenue fell by approximately RMB 560.2 million or 39.7% to about RMB 1,001.0 million for the year ending December 31, 2024, primarily due to decreased demand from domestic customers[17] - Revenue from the building materials sector decreased to approximately RMB 524.9 million for the year ending December 31, 2024, down from RMB 730.0 million in 2023, reflecting a decline in demand[13] - Revenue from production line construction surged by RMB 192.7 million or 486.1% to approximately RMB 232.4 million for the year ending December 31, 2024, driven by projects in Uzbekistan and Kenya[19] - Other income increased by approximately RMB 12.3 million or 68.0% to about RMB 30.4 million for the year ending December 31, 2024, mainly due to higher interest income and government subsidies[22] - Total profit and comprehensive income decreased by approximately RMB 72.8 million or 50.7% to about RMB 70.7 million for the year ending December 31, 2024[29] Dividends and Shareholder Returns - The board proposed a final dividend of RMB 0.04037 per ordinary share, totaling approximately RMB 20.2 million[6] - The company plans to distribute a final dividend of RMB 0.04037 per share, totaling approximately RMB 20.2 million, subject to shareholder approval[58] Strategic Initiatives and Innovations - The company aims to enhance its technological innovation capabilities and focus on high-end, intelligent, and green manufacturing as part of its strategic transformation in 2025[9] - The company is actively advancing multiple overseas projects in Uzbekistan, Bangladesh, Kenya, Burundi, Morocco, and Ghana, with significant progress on cement production lines and grinding station projects[9] - The company continues to invest in energy-saving and environmental protection technology R&D, with 170 authorized patents as of December 31, 2024, including 84 invention patents[14] - The company aims to diversify its business into metallurgy, chemical, and environmental protection industries to expand its customer base[56] - The company is focusing on expanding its international business into Belt and Road countries, which involves various legal and political risks[62] Financial Position and Assets - Current assets net value was approximately RMB 390.3 million as of December 31, 2024, with a current ratio of 122.8%[30] - Cash and cash equivalents increased to approximately RMB 555.4 million as of December 31, 2024, compared to RMB 378.9 million as of December 31, 2023[34] - The debt-to-equity ratio increased to 188.8% as of December 31, 2024, from 170.4% as of December 31, 2023, primarily due to a decrease in equity[35] - The total amount of trade receivables as of December 31, 2024, was 38% attributable to payments from customers involved in the group's production line construction, down from 45% as of December 31, 2023, indicating a concentration of credit risk[39] - The group held financial assets at fair value through profit or loss amounting to approximately RMB 109.3 million as of December 31, 2024, representing 4.0% of total assets, an increase from RMB 103.1 million in the previous year[49] Governance and Management - The company has established four board committees: Audit Committee, Remuneration Committee, Nomination Committee, and Investment Committee, to oversee specific areas of the company's affairs[111] - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[150] - The board believes that corporate culture is the foundation for long-term business development and economic achievement[151] - The company has a gender diversity policy in place, currently having 1 female executive out of 8 total executives, with 7 males, and 28.1% of the total workforce being female[163] - Continuous professional development is mandatory for all directors to ensure compliance and enhance awareness of good corporate governance practices[172] Risks and Challenges - The company’s revenue heavily relies on the macroeconomic conditions in China, which poses a risk to future growth prospects[59] - The company acknowledges the importance of maintaining good relationships with employees, suppliers, customers, and other stakeholders to achieve current and long-term goals[76] - The company does not guarantee that future expansion plans in the "Belt and Road" countries will be successful or yield expected returns[63] Employee and Community Engagement - Charitable donations for the year ended December 31, 2024, amounted to RMB 200,000, down from RMB 327,693.81 in 2023[72] - The company has been actively involved in public service, with Mr. Wang serving in various leadership roles in industry associations[123]

Financial Performance - For the year ending December 31, 2024, the revenue was approximately RMB 1,258.9 million, a decrease of 27.2% compared to the previous year[5] - The gross profit for the same period was approximately RMB 249.9 million, representing a decline of about 33.3% year-on-year[5] - The profit before tax was approximately RMB 86.0 million, down approximately 52.6% from the previous year[5] - The profit attributable to equity holders of the company for the year was approximately RMB 67.3 million, a decrease of about 52.9% compared to last year[5] - The total revenue for the year ended December 31, 2024, was approximately RMB 1,258.9 million, a decrease of 27.2% from RMB 1,729.5 million in 2023[52] - Total profit and comprehensive income decreased by approximately RMB 72.8 million or 50.7% from approximately RMB 143.5 million for the year ended December 31, 2023, to approximately RMB 70.7 million for the year ending December 31, 2024[63] Earnings and Dividends - The earnings per share attributable to ordinary shareholders was RMB 13.46 cents[5] - The board recommended a final dividend of RMB 0.04037 per ordinary share, totaling approximately RMB 20.2 million[5] - The proposed final dividend for the year ended December 31, 2024, is RMB 0.04037 per share, totaling approximately RMB 20.2 million, subject to shareholder approval[87] - The total dividend payout ratio is 30% of the profit attributable to the owners of the company for the year[87] Assets and Liabilities - The total assets less current liabilities as of December 31, 2024, amounted to RMB 989.2 million, compared to RMB 981.6 million in the previous year[8] - The company's cash and cash equivalents increased to RMB 506.4 million from RMB 378.9 million year-on-year[7] - Trade receivables decreased to RMB 93.6 million from RMB 125.9 million year-on-year[7] - The company reported a total of RMB 1,058,383,000 in cost of sales for the year ended December 31, 2024, down from RMB 1,264,751,000 in 2023, representing a decrease of about 16.3%[26] - The company's debt-to-equity ratio increased to 188.8% as of December 31, 2024, from 170.4% as of December 31, 2023[69] Revenue Breakdown - Revenue from equipment sales at a specific point in time was RMB 1,000,956 thousand, down from RMB 1,661,171 thousand in the previous year, representing a decline of 39.7%[14] - Revenue from construction line services increased significantly to RMB 232,372 thousand from RMB 39,645 thousand, marking a growth of 485.5%[14] - Revenue from installation services decreased slightly to RMB 25,548 thousand from RMB 28,714 thousand, a decline of 10.0%[14] - Revenue from mainland China for the year ended December 31, 2024, was RMB 936,516,000, down from RMB 1,289,416,000 in 2023, representing a decrease of approximately 27.4%[24] - Revenue from non-building materials customers accounted for 71.1% of total equipment sales in 2024, up from 59.1% in 2023[49] Research and Development - The company invested RMB 51.4 million in research expenses, an increase from RMB 36.0 million in the previous year[6] - The company’s research expenses for the year ended December 31, 2024, were RMB 19,652,000, an increase from RMB 18,155,000 in 2023, reflecting an increase of approximately 8.2%[27] - The company is focusing on research and development of energy-saving technologies and has partnered with Tsinghua University for key technology research[50] Employee and Labor Relations - As of December 31, 2024, the group had 888 employees, a decrease from 1,092 employees as of December 31, 2023[80] - Employee costs for the year ended December 31, 2024, amounted to approximately RMB 125.1 million, down from RMB 137.7 million in 2023[80] - The group has maintained good working relationships with employees, with no major labor disputes reported[80] Cash Flow and Liquidity - The net cash generated from operating activities for the year ended December 31, 2024, was approximately RMB 387.0 million, compared to RMB 46.4 million for the previous year[69] - The company did not face any liquidity issues as of December 31, 2024, maintaining sufficient cash and cash equivalents[74] Compliance and Governance - The company has adopted the Corporate Governance Code as per the Listing Rules Appendix C1 and has complied with its provisions for the year ending December 31, 2024[89] - All directors confirmed compliance with the Standard Code for Securities Transactions by Directors for the year ending December 31, 2024[90] - The Audit Committee, consisting of three independent non-executive directors, reviewed and discussed the audited consolidated financial statements for the year ending December 31, 2024[91] Other Financial Information - The company has not early adopted any new or revised International Financial Reporting Standards that are expected to have a significant impact on consolidated financial statements in the foreseeable future[12] - The group has not engaged in any significant off-balance sheet transactions or arrangements as of December 31, 2024[79] - There have been no significant investments or acquisitions made by the group as of December 31, 2024[82] - The figures in the preliminary announcement for the year ending December 31, 2024, have been agreed upon by the auditors, Deloitte, and are consistent with the amounts approved by the board on March 31, 2024[92] - The annual report for the year ending December 31, 2024, will be sent to shareholders and published on the Stock Exchange and the company's website in due course[93]

Financial Performance - For the six months ended June 30, 2024, the revenue was approximately RMB 632.7 million, a decrease of about 25.0% compared to the same period last year[5]. - The gross profit for the same period was approximately RMB 120.5 million, reflecting a decrease of about 16.6% year-on-year[5]. - The profit before tax for the six months ended June 30, 2024, was approximately RMB 38.2 million, down approximately 51.0% from the previous year[5]. - The total profit and comprehensive income attributable to the owners of the company for the same period was approximately RMB 32.5 million, a decrease of about 49.2% year-on-year[5]. - The earnings per share attributable to ordinary shareholders for the six months ended June 30, 2024, was RMB 0.063[5]. - Revenue for the six months ended June 30, 2024, decreased by approximately RMB 210.8 million or 25.0% to about RMB 632.7 million compared to RMB 843.5 million for the same period in 2023[14]. - Equipment manufacturing revenue dropped by approximately RMB 293.7 million or 35.4% to about RMB 536.0 million for the six months ended June 30, 2024, compared to RMB 829.7 million for the same period in 2023[15]. - Installation service revenue decreased by approximately RMB 11.5 million or 83.3% to about RMB 2.3 million for the six months ended June 30, 2024, compared to RMB 13.8 million for the same period in 2023[16]. - Gross profit decreased by approximately RMB 23.9 million or 16.6% to about RMB 120.5 million for the six months ended June 30, 2024, compared to RMB 144.4 million for the same period in 2023[18]. - The gross profit margin increased to 19.0% for the six months ended June 30, 2024, compared to 17.1% for the same period in 2023[18]. - The net profit for the period was RMB 32,487 thousand, a decline of 49% from RMB 63,889 thousand in the prior year[62]. - Basic earnings per share decreased to RMB 6.26 from RMB 12.78, reflecting the drop in profitability[62]. - The total income tax expense for the six months ended June 30, 2024, was RMB 5,720,000, a decrease of 59.5% from RMB 14,105,000 in 2023[79]. Market Strategy and Development - The company is focusing on expanding its market presence in Central Asia and Africa while enhancing domestic market potential[7]. - The company aims to enhance its competitive edge through differentiated products, services, and business models while exploring potential growth in international markets[8]. - The company is committed to high-quality development and safety, aiming to become a world-class high-end equipment manufacturing group[8]. - The company aims to expand its business into emerging markets and countries along the "Belt and Road" initiative, focusing on infrastructure investment opportunities[13]. Research and Innovation - The company has increased investment in independent technological innovation, developing new technologies and equipment in the fields of building materials, metallurgy, and environmental protection[7]. - Four products have been recognized for new technology and products in Jiangsu Province's building materials industry[7]. - Research expenses surged by approximately RMB 25.7 million or 223.4% to about RMB 37.3 million for the six months ending June 30, 2024, driven by increased R&D costs related to environmentally friendly production technology[23]. Financial Position and Cash Flow - Current assets net value was approximately RMB 393.2 million as of June 30, 2024, with a current ratio of 126.3%[27]. - Cash and cash equivalents increased to approximately RMB 532.6 million as of June 30, 2024, from RMB 378.9 million as of December 31, 2023[29]. - The debt-to-equity ratio increased to 173.7% as of June 30, 2024, compared to 170.3% as of December 31, 2023, primarily due to a decrease in equity[29]. - For the six months ended June 30, 2024, the group recorded a net cash inflow from operating activities of approximately RMB 150.9 million, compared to RMB 38.5 million for the same period in 2023[30]. - The net cash inflow from investing activities for the six months ended June 30, 2024, was approximately RMB 38.3 million, down from RMB 129.4 million in the same period of 2023[30]. - The net cash outflow from financing activities for the six months ended June 30, 2024, was approximately RMB 36.7 million, compared to RMB 49.4 million for the same period in 2023[30]. - The company’s cash flow from investing activities showed a net cash inflow of RMB 38,451 thousand, down from RMB 129,426 thousand in the previous year[67]. Shareholder Information - The major shareholder, Ambon Holding Limited, holds 225,249,438 shares, representing 45.05% of the total equity[52]. - PF International Group Limited holds 133,211,176 shares, accounting for 26.64% of the total equity[52]. - PF Global Limited owns 49,635,386 shares, which is 9.93% of the total equity[52]. - As of June 30, 2024, the company maintained a public float of at least 25% of its issued shares in compliance with the listing rules[46]. Compliance and Governance - The company has adopted the Corporate Governance Code and has complied with its principles and provisions as of June 30, 2024[47]. - The audit committee reviewed the unaudited interim financial information and confirmed compliance with applicable accounting standards and regulations[57]. Assets and Liabilities - Total assets as of June 30, 2024, were RMB 1,885,327 thousand, slightly up from RMB 1,860,462 thousand at the end of 2023[63]. - Current liabilities amounted to RMB 1,492,165 thousand, compared to RMB 1,478,830 thousand at the end of the previous year, indicating a slight increase[63]. - The company’s total equity attributable to owners decreased to RMB 898,178 thousand as of June 30, 2024, from RMB 909,727 thousand as of January 1, 2024[65]. - Trade receivables as of June 30, 2024, amounted to RMB 368,295,000, a slight increase from RMB 367,387,000 as of December 31, 2023[86]. - The provision for impairment losses on trade receivables decreased to RMB 79,182,000 from RMB 85,114,000, resulting in a net trade receivables balance of RMB 289,113,000[86]. Employee and Management Costs - The total employee costs for the six months ended June 30, 2024, were approximately RMB 57.6 million, down from RMB 66.6 million for the same period in 2023[41]. - Total compensation for key management personnel was RMB 1,017 thousand for the six months ended June 30, 2024, compared to RMB 1,059 thousand for the same period in 2023, reflecting a decrease of approximately 4%[100].

Financial Performance - For the six months ended June 30, 2024, revenue was approximately RMB 632.7 million, a decrease of about 25% compared to the same period last year[1] - Gross profit for the same period was approximately RMB 120.5 million, representing a decrease of about 16.6% year-on-year[1] - Profit before tax for the six months ended June 30, 2024, was approximately RMB 38.2 million, down approximately 51.0% from the previous year[1] - The profit attributable to equity holders of the company for the same period was approximately RMB 32.5 million, a decrease of about 49.2% compared to last year[1] - Basic earnings per share for the six months ended June 30, 2024, was RMB 6.26, down from RMB 12.78 in the same period last year[3] - Revenue decreased by approximately RMB 210.8 million or 25.0% to about RMB 632.7 million for the six months ended June 30, 2024, compared to RMB 843.5 million for the same period in 2023[32] - Equipment manufacturing revenue fell by approximately RMB 293.7 million or 35.4% to about RMB 536.0 million for the six months ended June 30, 2024, primarily due to a decrease in sales of grinding equipment systems[33] - Installation service revenue decreased by approximately RMB 11.5 million or 83.3% to about RMB 2.3 million for the six months ended June 30, 2024, due to reduced demand from equipment manufacturing customers[33] - Net profit attributable to the company decreased by approximately RMB 32.6 million or 51.0% to about RMB 31.3 million for the six months ended June 30, 2024, compared to RMB 63.9 million for the same period in 2023[43] Assets and Liabilities - Total assets as of June 30, 2024, were approximately RMB 1,885.3 million, compared to RMB 1,860.5 million as of December 31, 2023[4] - Current liabilities amounted to approximately RMB 1,492.2 million as of June 30, 2024, compared to RMB 1,478.8 million at the end of 2023[4] - Trade receivables amounted to RMB 368,295,000, with a provision for impairment of RMB 79,182,000[19] - Trade receivables as of June 30, 2024, amounted to RMB 289.1 million, compared to RMB 282.3 million as of December 31, 2023[21] - Trade payables as of June 30, 2024, were RMB 377.3 million, down from RMB 414.9 million as of December 31, 2023[25] - The company had bank borrowings of approximately RMB 19.8 million as of June 30, 2024, down from RMB 55.3 million as of December 31, 2023, with an interest rate of 3.05% on the majority of the borrowings[46] - The company's debt-to-equity ratio was 173.7% as of June 30, 2024, up from 170.3% as of December 31, 2023, primarily due to a decrease in equity[47] Cash Flow and Income - The company's cash and cash equivalents increased to approximately RMB 532.6 million from RMB 378.9 million at the end of 2023[4] - The net cash generated from operating activities for the six months ended June 30, 2024, was approximately RMB 150.9 million, compared to RMB 38.5 million for the same period in 2023[47] - Other income for the six months ended June 30, 2024, was approximately RMB 15.4 million, compared to RMB 4.4 million in the same period last year[3] - Other income increased significantly by approximately RMB 11.0 million or 248.6% to about RMB 15.4 million for the six months ended June 30, 2024, mainly due to higher interest income and government subsidies[36] Research and Development - Research expenses for the six months ended June 30, 2024, were approximately RMB 37.3 million, significantly higher than RMB 11.5 million in the previous year[3] - Research expenditure increased by approximately RMB 25.7 million or 223.4% to about RMB 37.3 million for the six months ended June 30, 2024, aimed at enhancing competitiveness in the environmentally friendly production technology market[40] Market and Revenue Segments - Revenue from the building materials sector for the six months ended June 30, 2024, was approximately RMB 203.9 million, down from RMB 298.9 million for the same period in 2023[29] - Revenue from mainland China was RMB 501,362,000, down 31.1% from RMB 728,174,000 in the previous year[13] - Revenue from customers in "Belt and Road" countries represented approximately 6.9% and 20.8% of total revenue for the six months ended June 30, 2023, and 2024, respectively[29] Corporate Governance and Future Plans - The company declared a final dividend of RMB 0.0857 per share, totaling RMB 42,850,000, compared to RMB 37,000,000 in the previous year[16] - The company aims 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[31] - The company plans to focus on market share expansion, product differentiation, and innovation to enhance competitiveness in both domestic and international markets[31] - The board has decided not to declare an interim dividend for the six months ending June 30, 2024, consistent with the previous period[67] Employee and Operational Metrics - Employee costs, including director remuneration, amounted to approximately RMB 57.6 million for the six months ended June 30, 2024, compared to RMB 66.6 million for the same period in 2023[59] - The group maintained a workforce of 894 employees as of June 30, 2024, a decrease from 1,102 employees on June 30, 2022[58] Compliance and Reporting - The audit committee has reviewed the unaudited interim financial information for the six months ending June 30, 2024, and believes it complies with applicable accounting standards and regulations[67] - The interim report for the six months ending June 30, 2024, will be published on the Hong Kong Stock Exchange and the company's website[68]

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].