Investment Rating - The report assigns a "Buy" rating for the company [1]. Core Views - The company is a leader in clean energy, chemicals, and food equipment industries, with continuous improvement in performance. The company has established a solid platform through stock incentives and spin-off listings, entering a harvest period with improving profitability [3][5]. - The LNG industry is experiencing significant expansion and structural resonance, with a projected 1-1.5 times growth in natural gas demand over the next 10-15 years. The global low-cost natural gas production capacity is expected to expand significantly in the next 2-3 years, driving high growth in related storage, liquefaction, and receiving equipment [3][5]. - The company has a comprehensive equipment layout in the LNG sector and is seeing high growth in new orders. The hydrogen energy market has vast development potential, with a 56% year-on-year increase in hydrogen energy orders as of Q3 2023 [3][5]. - The chemical environment and liquid food sectors are stable cash cows, with a strong market share in chemical tanks and sufficient orders in the liquid food business, indicating steady growth [3][5]. - The company is expected to achieve net profits of 1.114 billion, 1.317 billion, and 1.672 billion RMB for 2023-2025, respectively. Based on comparable company valuations, a PE ratio of 15x for 2024 is suggested, leading to a reasonable value of 8.57 HKD per share [3][5]. Summary by Sections Company Overview - The company has become a leader in clean energy, chemicals, and liquid food equipment after 20 years of steady development. It ranks first in China for low-temperature and high-pressure gas transportation equipment and has a leading position in the global small and medium-sized liquefied gas ship market [13][15]. - The management team is experienced, with a stable shareholding structure and effective incentive systems in place, including stock options for key personnel [17][19]. LNG Industry - The natural gas sector is poised for significant growth, with structural changes in supply and a surge in maritime LNG demand due to geopolitical factors [3][5]. - The company is well-positioned to benefit from the expansion of LNG production capacity and the increasing demand for related equipment [3][5]. Clean Energy - The company has a comprehensive layout in LNG and is actively developing hydrogen energy solutions, with a notable increase in orders for hydrogen-related products [3][5]. - The company is a leader in the LNG refueling ship segment and is seeing robust growth in land-based equipment [3][5]. Chemical Environment & Liquid Food - The chemical environment and liquid food sectors are expected to maintain stable growth, with the company holding a significant market share in chemical tanks and a strong order book in the liquid food sector [3][5]. Profit Forecast and Investment Recommendations - The company is projected to see a steady increase in net profits over the next few years, supported by its strong market position and growth in key sectors [3][5].

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 9.04, indicating a potential upside of 26.3% from the current price of HKD 7.16 [3][12]. Core Insights - The company's core profit for 2023 increased by 4.4% year-on-year to RMB 1.28 billion, surpassing market expectations by 5-8%. The clean energy segment was a significant growth driver, with revenues and gross profits rising by 41% and 44%, respectively [1][2]. - The report highlights that the clean energy segment is expected to maintain a robust growth trajectory, with a projected compound annual growth rate (CAGR) of 19% from 2023 to 2026. The order backlog for clean energy products has increased by 54% year-on-year to RMB 16.6 billion, covering 90% of the forecasted revenue for 2024 [1][2]. - The hydrogen energy segment is anticipated to grow by 42% in 2024, reaching approximately RMB 1 billion in revenue. However, the chemical segment is expected to see a slight decline of around 4% in revenue due to a high base effect from 2022 [1][2]. Financial Summary - Revenue for 2023 is reported at RMB 23.63 billion, reflecting a year-on-year growth of 20.5%. The net profit for the same period is RMB 1.11 billion, with earnings per share (EPS) of RMB 0.63, marking a 21.5% increase [3][6]. - The company’s projected revenue for 2024 is RMB 27.55 billion, with a net profit forecast of RMB 1.37 billion and an EPS of RMB 0.67. The report indicates a slight adjustment in EPS forecasts for 2024 and 2025, reflecting conservative gross margin expectations for the chemical and liquid food segments [2][3]. - The dividend payout ratio has increased from 41% in 2022 to 49% in 2023, with a 25% increase in the final dividend [1][2]. Segment Performance - The clean energy equipment segment is projected to generate revenues of RMB 14.91 billion in 2023, with a growth rate of 40.8%. The chemical equipment segment is expected to decline by 15.8% to RMB 4.41 billion [8][9]. - The liquid food equipment segment is forecasted to grow by 18.6% to RMB 4.29 billion in 2023 [8][9]. - The gross margin for the clean energy segment is expected to remain stable, while the chemical segment's gross margin is projected to decline slightly [8][9].

Investment Rating - The report maintains a "Buy" rating for the company, citing its strong growth potential in LNG and hydrogen energy sectors, supported by favorable policies [2][4] Core Views - The company achieved steady revenue growth in 2023, with total revenue reaching RMB 23.63 billion, a 20.5% YoY increase, and net profit attributable to shareholders growing 5.6% YoY to RMB 1.11 billion [2] - Despite a slight decline in gross margin to 15.7% (down 1.7 percentage points YoY), the company's operating cash flow remained strong at RMB 1.78 billion [2] - The company's new orders and backlog reached record highs, with new orders increasing 31.5% YoY to RMB 26.64 billion and backlog growing 29.8% YoY to RMB 22.8 billion [2] - The hydrogen energy business showed robust growth, with revenue surging 59.0% YoY to RMB 700 million, and backlog increasing 18.7% YoY to RMB 335 million [2] Financial Performance - The company's revenue is expected to grow steadily, with forecasts of RMB 27.65 billion, RMB 31.18 billion, and RMB 34.51 billion for 2024E, 2025E, and 2026E, respectively [3] - Net profit is projected to increase to RMB 1.42 billion, RMB 1.74 billion, and RMB 1.97 billion for 2024E, 2025E, and 2026E, respectively, with EPS of RMB 0.70, RMB 0.86, and RMB 0.97 [3] - ROE is expected to improve from 9.9% in 2023 to 11.6%, 13.0%, and 13.5% in 2024E, 2025E, and 2026E, respectively [3] Business Segments - The clean energy segment saw significant growth, with revenue increasing 40.8% YoY to RMB 14.91 billion, driven by strong demand for LNG and industrial gases [2] - The chemical environment segment revenue declined 15.8% YoY to RMB 4.41 billion due to a slowdown in global tank container demand [2] - The liquid food segment revenue grew 18.6% YoY to RMB 4.29 billion, supported by increased new orders [2] Hydrogen Energy Developments - The company made breakthroughs in hydrogen energy, including the successful launch of a coke oven gas-to-hydrogen and LNG co-production project [2] - It developed the first 40 cubic meter commercial liquid hydrogen tanker and a 40-foot liquid hydrogen tank, marking a milestone in national R&D projects [2] - The company completed the construction of a hydrogen cylinder and supply system production base and delivered Hong Kong's first skid-mounted hydrogen refueling station [2] Valuation Metrics - The company's P/E ratio is projected to decrease from 12.0 in 2023 to 9.5, 7.7, and 6.8 in 2024E, 2025E, and 2026E, respectively [3] - The P/B ratio is expected to decline from 1.2 in 2023 to 1.1, 1.0, and 0.9 in 2024E, 2025E, and 2026E, respectively [3]

Financial Performance - Total revenue for the year ended December 31, 2023, reached RMB 23,626,279 thousand, representing a 20.5% increase from RMB 19,601,761 thousand in 2022[2] - Net profit for the year was RMB 1,163,561 thousand, up 7.2% from RMB 1,084,938 thousand in the previous year[3] - Earnings attributable to equity holders increased by 5.6% to RMB 1,113,972 thousand, compared to RMB 1,055,062 thousand in 2022[3] - Core profit, excluding share-based payment expenses and convertible bond-related interest, rose by 4.4% to RMB 1,281,381 thousand from RMB 1,227,963 thousand[2] - Basic earnings per share increased by 4.9% to RMB 0.554, compared to RMB 0.528 in 2022[3] - The proposed final dividend per ordinary share is HKD 0.30, a 25.0% increase from HKD 0.24 in the previous year[2] - The company reported a total comprehensive income of RMB 1,164,305,000 for the year ended December 31, 2023, compared to RMB 1,113,972,000 in the previous year, representing a growth of approximately 4.5%[8] Assets and Liabilities - Total assets as of December 31, 2023, amounted to RMB 27,587,424 thousand, compared to RMB 22,214,474 thousand in 2022[5] - Cash and cash equivalents increased to RMB 6,998,191 thousand from RMB 5,223,453 thousand in the previous year[5] - Non-current liabilities decreased significantly to RMB 1,196,519 thousand from RMB 2,151,231 thousand in 2022[5] - Total current liabilities increased to RMB 14,017,261 thousand in 2023, up from RMB 10,535,736 thousand in 2022, representing a growth of 32.3%[6] - Total liabilities rose to RMB 15,213,780 thousand in 2023, compared to RMB 12,686,967 thousand in 2022, marking an increase of 19.9%[6] - Net assets increased significantly to RMB 12,373,644 thousand in 2023, up from RMB 9,527,507 thousand in 2022, reflecting a growth of 30.7%[6] - The company's equity attributable to shareholders reached RMB 11,232,252 thousand in 2023, compared to RMB 9,141,767 thousand in 2022, indicating a rise of 23.0%[6] Revenue Breakdown - Total revenue from external customers for the clean energy segment reached RMB 14,907,121 thousand in 2023, up from RMB 10,591,120 thousand in 2022, marking an increase of 40.5%[31] - Sales of goods contributed RMB 14,752,277 thousand, up from RMB 12,832,262 thousand, reflecting a growth of 14.9%[14] - Engineering project contract revenue increased to RMB 8,874,002 thousand, compared to RMB 6,769,499 thousand, marking a growth of 31.1%[14] - The clean energy segment's revenue rose by 40.8% to RMB 14,907,121,000, accounting for 63.1% of total revenue, up from 54.0% in 2022[50] - The chemical environment segment's revenue decreased by 15.8% to RMB 4,414,336,000, representing 18.7% of total revenue, down from 26.7% in 2022[51] - The liquid food segment's revenue increased by 18.6% to RMB 4,292,702,000, making up 18.2% of total revenue, slightly down from 18.5% in 2022[51] Expenses and Costs - Employee costs rose to RMB 2,168,545 thousand, up from RMB 2,051,266 thousand, representing a 5.7% increase[17] - Research and development expenses increased to RMB 690,440 thousand from RMB 557,968 thousand, a rise of 23.6%[18] - Financing costs increased by 16.2% to RMB 93,536,000 in 2023, up from RMB 80,470,000 in 2022, mainly due to an increase in loan amounts[54] - The company’s annual depreciation and amortization expenses were RMB 375,322 thousand in 2023, compared to RMB 349,601 thousand in 2022, an increase of 7.3%[31] Shareholder Information - The board recommends increasing the dividend payout ratio to approximately 50% for the year ending December 31, 2023, up from 40% in 2022[90] - The proposed final dividend for 2023 is HKD 0.30 per share, compared to HKD 0.24 per share in 2022, subject to shareholder approval at the annual general meeting[90] - A 10% corporate income tax will be withheld for non-resident corporate shareholders receiving the 2023 final dividend[93] Corporate Governance - The company has adhered to all corporate governance codes as per the Hong Kong Stock Exchange listing rules for the year ending December 31, 2023[95] - The audit committee reviewed the group's annual performance and consolidated financial statements for the year ending December 31, 2023[96] - The independent auditor confirmed that the figures listed in the performance announcement for the year ending December 31, 2023, are consistent with the audited consolidated financial statements[97] - The company is committed to transparency and timely communication with shareholders regarding financial performance and governance matters[106] Strategic Initiatives - The company plans to adopt several revised accounting standards effective January 1, 2024, which are not expected to have a significant impact on the financial statements[10] - The company is focusing on geographic expansion opportunities through both organic growth and acquisitions[89] - The group aims to enhance capabilities in clean energy equipment manufacturing, engineering services, and integrated solutions related to hydrogen, green methanol, and green ammonia[85] - The group plans to actively expand projects for clean alternative fuel production, including hydrogen, LNG, and green methanol[86]

Financial Performance - Total revenue for the first half of 2023 reached RMB 10,756,489 thousand, representing a 20.2% increase compared to RMB 8,948,693 thousand in the same period of 2022[20]. - Gross profit increased by 24.5% to RMB 1,771,166 thousand, up from RMB 1,423,118 thousand year-on-year[20]. - EBITDA for the first half of 2023 was RMB 977,029 thousand, reflecting a growth of 21.9% from RMB 801,814 thousand in the previous year[20]. - Core profit rose by 17.7% to RMB 625,944 thousand, compared to RMB 531,831 thousand in the first half of 2022[20]. - The company reported a net profit attributable to equity holders of RMB 568,673 thousand, a significant increase of 29.4% from RMB 439,315 thousand year-on-year[20]. - Net profit for the period was RMB 570,032 thousand, a rise of 25.7% compared to RMB 453,619 thousand in the prior year[26]. - Basic earnings per share increased to RMB 0.283, up from RMB 0.219, reflecting a growth of 29.3%[25]. - The company reported a total comprehensive income of RMB 626,288 thousand for the period, compared to RMB 427,412 thousand in the previous year, an increase of 46.6%[26]. Assets and Liabilities - Total assets as of June 30, 2023, amounted to RMB 23,584,562 thousand, up 6.2% from RMB 22,214,474 thousand at the end of 2022[19]. - Total liabilities increased to RMB 13,776,258 thousand from RMB 12,686,967 thousand, marking an increase of 8.6%[29]. - Net assets rose to RMB 9,808,304 thousand, up from RMB 9,527,507 thousand, reflecting a growth of 2.9%[29]. - The company's cash and cash equivalents decreased by 4.4% to RMB 4,993,951 thousand from RMB 5,223,453 thousand[19]. - The leverage ratio increased to 26.5%, up 5.5 percentage points from 21.0% at the end of 2022[19]. Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2023, was RMB 568,123 thousand, a decrease from RMB 1,580,454 thousand in the same period of 2022, representing a decline of approximately 64.0%[32]. - The net cash used in investing activities amounted to RMB 902,390 thousand, compared to RMB 215,241 thousand in the previous year, indicating a significant increase in investment outflows[32]. - The net cash generated from financing activities was RMB 100,927 thousand, a recovery from a net cash outflow of RMB 162,533 thousand in the same period of 2022[32]. Market and Growth Outlook - The company has set a future revenue guidance of RMB 1 billion for the second half of 2023, indicating a strong growth outlook[30]. - The company plans to expand its market presence in Southeast Asia, targeting a 20% increase in market share by the end of 2024[30]. - New product development initiatives are underway, with an investment of RMB 32,949 thousand allocated for R&D in the first half of 2023[30]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[50]. Segment Performance - The clean energy segment saw a revenue increase of 34.4% to RMB 6,293,551,000, contributing 58.5% of total revenue[102]. - The liquefied food segment's revenue increased by 17.3% to RMB 2,012,106,000, compared to RMB 1,714,941,000 in 2022[99]. - The chemical environment segment experienced a revenue decline of 3.9% to RMB 2,450,832,000 from RMB 2,550,409,000[99]. Research and Development - Research and development costs for the first half of 2023 were RMB 318,820,000, compared to RMB 217,949,000 in the same period of 2022, reflecting a 46% increase[57]. - Significant R&D achievements include the completion of the second-generation liquid helium tank, which has reached international leading standards and commenced mass sales[138]. - Ongoing R&D efforts focus on improving resource efficiency and developing sustainable solutions, including advanced distillation systems and automated brewing lines[149]. Corporate Governance - The financial report was approved for publication on August 23, 2023, and has been reviewed but not audited, ensuring transparency in financial reporting[33]. - The company has adhered to all corporate governance codes as per the Hong Kong Stock Exchange regulations during the reporting period[169]. - The board of directors consists of a mix of executive and independent non-executive directors, ensuring diverse governance[173].

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 10,756,489 thousand, representing a 20.2% increase from RMB 8,948,693 thousand in the same period of 2022[2] - Net profit for the same period was RMB 570,032 thousand, up 25.7% from RMB 453,619 thousand year-on-year[2] - Earnings attributable to equity holders increased by 29.4% to RMB 568,673 thousand compared to RMB 439,315 thousand in the previous year[2] - Core profit reached RMB 625,944 thousand, reflecting a 17.7% growth from RMB 531,831 thousand in the prior period[2] - Basic earnings per share rose to RMB 0.283, a 29.2% increase from RMB 0.219 in the same period last year[2] - Gross profit margin improved to 16.5%, up 0.6 percentage points from 15.9% in the previous year[2] - The company reported a total comprehensive income of RMB 626,288 thousand for the period, compared to RMB 427,412 thousand in the same period of 2022[5] - Adjusted operating profit for the reportable segments was RMB 832,800 thousand, up 26% from RMB 660,527 thousand in the previous year[21] - The consolidated profit before tax for the six months ended June 30, 2023, was RMB 730,318 thousand, an increase of 24.8% from RMB 585,026 thousand in the previous year[22] Assets and Liabilities - Total assets as of June 30, 2023, amounted to RMB 23,584,562 thousand, compared to RMB 22,214,474 thousand at the end of 2022[6] - Total liabilities increased to RMB 13,776,258 thousand from RMB 12,686,967 thousand at the end of 2022[7] - Net assets grew to RMB 9,808,304 thousand, up from RMB 9,527,507 thousand at the end of the previous year[7] - Reportable segment assets increased to RMB 22,270,654 thousand as of June 30, 2023, compared to RMB 20,817,892 thousand as of December 31, 2022, reflecting a growth of 7%[24] - Reportable segment liabilities rose to RMB 11,154,060 thousand as of June 30, 2023, from RMB 10,389,208 thousand at the end of 2022, indicating an increase of 7.4%[25] Revenue Breakdown - Sales of goods amounted to RMB 7,446,467 thousand, up from RMB 6,704,100 thousand, reflecting a growth of 11.1% year-on-year[15] - Revenue from engineering project contracts was RMB 3,310,022 thousand, compared to RMB 2,244,593 thousand, representing a significant increase of 47.4%[15] - The clean energy segment reported a revenue increase of 34.4% to RMB 6,293,551,000, while the chemical environment segment saw a decline of 3.9% to RMB 2,450,832,000[41] - The liquid food segment's revenue rose by 17.3% to RMB 2,012,106,000 in H1 2023, compared to RMB 1,714,941,000 in H1 2022, making up 18.7% of total revenue[45] Costs and Expenses - Research and development costs for the six months ended June 30, 2023, were RMB 318,820 thousand, compared to RMB 217,949 thousand for the same period in 2022, representing a 46.3% increase[27] - Financing costs for the six months ended June 30, 2023, amounted to RMB 38,425 thousand, up from RMB 32,977 thousand in the same period of 2022, reflecting an increase of 16.7%[26] - The income tax expense for the six months ended June 30, 2023, was RMB 160,286 thousand, compared to RMB 131,407 thousand for the same period in 2022, indicating an increase of 22%[28] Market and Strategic Developments - The group is committed to expanding its market presence through strategic investments in clean energy and chemical environments, aligning with global sustainability trends[16] - The clean energy division aims to strengthen its international business and optimize the combination of key energy equipment and product operations[75] - The company is positioned to benefit from the growing demand for LNG and other clean energy equipment due to geopolitical influences and market changes[72] - The company anticipates a 5.5% to 7% year-on-year increase in China's natural gas consumption, projected to reach 385 billion to 390 billion cubic meters in 2023[72] Employee and Operational Metrics - As of June 30, 2023, the total number of employees was approximately 10,600, an increase from about 9,500 in the same period of 2022, with total employee costs reaching RMB 1,189,933,000, up from RMB 1,057,931,000 in 2022[62] - The group recorded cash inflow from operating activities of RMB 568,123,000, down from RMB 1,580,454,000 in the same period last year[56] - The group invested RMB 322,732,000 in capital expenditures in the first half of 2023, up from RMB 231,361,000 in the same period of 2022, aimed at enhancing capacity and new business development[61] Corporate Governance - As of June 30, 2023, the company has adhered to all corporate governance codes as per the Hong Kong Stock Exchange regulations[89] - The company’s audit committee has reviewed and discussed the unaudited financial reports for the period with management[89] - The mid-year report for 2023 will be sent to shareholders and published on the company's and the exchange's websites[90]

Financial Performance - Total revenue for 2022 reached RMB 19,601,761, an increase of 6.4% compared to RMB 18,424,763 in 2021[11] - Operating profit for 2022 was RMB 1,472,288, reflecting a growth of 21.4% from RMB 1,212,559 in 2021[13] - Net profit attributable to equity holders was RMB 1,055,062, up 19.4% from RMB 883,581 in the previous year[13] - Total assets increased by 16.8% to RMB 22,214,474 from RMB 19,024,673 in 2021[11] - Cash and cash equivalents rose significantly by 64.6% to RMB 5,223,453 compared to RMB 3,173,351 in 2021[11] - The company achieved a gross profit margin of 17.4%, an increase of 2.7 percentage points from 14.7% in 2021[13] - The EBITDA margin improved to 9.5%, up 1.1 percentage points from 8.4% in the previous year[13] - Basic earnings per share increased by 18.1% to RMB 0.528 from RMB 0.447 in 2021[13] - The company maintained a leverage ratio of 21.0%, slightly down from 21.7% in 2021[11] - The net current assets grew by 20.7% to RMB 6,119,401 from RMB 5,071,926 in 2021[11] Clean Energy Initiatives - The company successfully developed the first domestic 40-foot liquid helium tank container, filling a gap in the domestic market[18] - The company delivered 78 ships converted from oil to gas, contributing to green upgrades in inland river shipping[18] - The company completed the development of a 45MPa diaphragm hydrogen compressor, becoming the only domestic supplier capable of producing all core equipment for hydrogen refueling stations[18] - The company established a hydrogen energy business center, focusing on the implementation of hydrogen energy strategies and value-added operations[21] - The company acquired key assets in the shipbuilding industry to seize opportunities in the clean energy sector[21] - The company launched a strategic supply intention for green methanol production with a global shipping giant[18] - The clean energy business demonstrated resilience amid global challenges, focusing on hydrogen, methanol, and ammonia as future green energy sources[26] - The clean energy division supported energy infrastructure development in Southeast Asia and Africa, with hydrogen equipment exported to Europe, Southeast Asia, and Australia[28] - The company achieved ISO14001 environmental management certification for 13 subsidiaries, representing over 70% of its member enterprises[33] - The group received an upgraded ESG rating to BBB from MSCI and an A rating from Wind, ranking 7th in the machinery industry[33] Market Trends and Developments - In 2022, China's apparent natural gas consumption decreased by 1.7% to 366.3 billion cubic meters, with domestic LNG supply share expanding[39] - Total natural gas imports in China for 2022 amounted to 109.248 million tons, a decrease of 9.9% year-on-year, with imported LNG down 19.5% to 63.442 million tons, marking the first decline in seven years[39] - The global number of operational hydrogen refueling stations reached 727 by the end of 2022, a year-on-year increase of 22.4%, with China having built 358 stations, ranking first globally[41] - The shipment volume of hydrogen long tube trailers increased by 40% year-on-year, reflecting growth in the hydrogen production and storage sector[41] - In 2022, the number of new orders for LNG-powered vessels reached 222, accounting for 81% of the total new ship orders globally, driven by strong demand for LNG shipping[40] Corporate Governance and Compliance - The company has maintained compliance with all provisions of the Corporate Governance Code as of December 31, 2022[179] - The board of directors has conducted regular meetings to closely monitor the group's business and operational performance throughout 2022[183] - The company adopted an anti-corruption and anti-fraud policy in October 2022, applicable to all employees and business partners[181] - The company aims to become a leading technology enterprise in clean energy, chemical environment, and liquid food sectors, emphasizing environmental protection and employee care[175] - The board has reviewed and approved the financial statements for the years ended December 31, 2021, and December 31, 2022, as well as the six months ended June 30, 2022[183] Research and Development - The company is investing heavily in R&D, with a budget increase of 25% to 150 million for new technologies[157] - The division's R&D team is exploring advanced material handling systems and automation technology to enhance production efficiency and sustainability[113] - The company plans to focus on breakthroughs in hydrogen production technologies, including blue and green hydrogen, and aims to establish production bases in Jiangsu and Hebei[69] Sustainability and Environmental Impact - The company aims to achieve carbon neutrality by 2030, aligning with global sustainability goals[165] - The company is committed to enhancing smart energy equipment and exploring integrated business service capabilities for clean energy[34] - The group reported a decrease of 8% in carbon dioxide emissions per billion RMB of revenue in 2022[122] - The company has invested significantly in environmental improvements, focusing on energy-saving technologies and achieving the title of "2022 Jiangsu Province Green Factory"[91] Employee and Operational Insights - The total employee count increased to approximately 10,500 in 2022 from about 9,900 in 2021, with total employee costs rising to RMB 2,051,266,000 from RMB 1,845,566,000[150] - The group has no significant investments or capital asset acquisitions planned as of December 31, 2022[146] - The company is focusing on integrating after-sales service resources and enhancing service efficiency through a comprehensive service network[78]

Financial Performance - Revenue for the year ended December 31, 2022, was RMB 19,601,761 thousand, representing a 6.4% increase from RMB 18,424,763 thousand in 2021[1] - Net profit for 2022 was RMB 1,084,938 thousand, up 19.4% from RMB 908,392 thousand in 2021[2] - Core profit increased by 29.4% to RMB 1,227,963 thousand from RMB 948,846 thousand in the previous year[1] - Basic earnings per share rose to RMB 0.528, an 18.1% increase compared to RMB 0.447 in 2021[2] - Gross profit margin improved to 17.4%, up 2.7 percentage points from 14.7% in 2021[1] - The total comprehensive income for the period was RMB 996,466 thousand, with a significant contribution from the annual profit of RMB 1,055,062 thousand[7] - The company reported a pre-tax profit of RMB 1,398,302 thousand in 2022, up from RMB 1,139,557 thousand in 2021, an increase of about 22.73%[22] Assets and Liabilities - Total assets as of December 31, 2022, were RMB 22,214,474 thousand, compared to RMB 19,024,673 thousand in 2021[4] - Total liabilities increased to RMB 12,686,967 thousand from RMB 10,524,996 thousand in the previous year[5] - The total assets for reportable segments increased to RMB 20,817,892 thousand in 2022 from RMB 17,876,488 thousand in 2021, marking an increase of approximately 16.4%[28] - The total liabilities for reportable segments rose to RMB 10,389,208 thousand in 2022, up from RMB 8,344,924 thousand in 2021, indicating a growth of about 24.5%[29] Cash Flow and Investments - Cash and cash equivalents rose significantly to RMB 5,223,453 thousand, up from RMB 3,173,351 thousand in 2021[4] - Operating cash inflow for the year was RMB 2,561,009,000, significantly higher than RMB 434,651,000 in 2021, primarily due to an increase in contract liabilities[53] - The group invested RMB 501,722,000 in capital expenditures in 2022, a decrease from RMB 841,019,000 in 2021, focusing on capacity enhancement and new business[59] Revenue Breakdown - Sales of goods contributed RMB 12,832,262 thousand to the total revenue, up from RMB 11,870,349 thousand in 2021, representing a growth of 8.1%[13] - The revenue from engineering project contracts was RMB 6,769,499 thousand, compared to RMB 6,554,414 thousand in the previous year, marking an increase of 3.3%[13] - Revenue from external customers in China was RMB 8,995,216 thousand in 2022, a slight decrease from RMB 9,095,732 thousand in 2021[31] - The company reported a significant increase in revenue from the United States, rising to RMB 2,121,782 thousand in 2022 from RMB 1,260,730 thousand in 2021, representing a growth of approximately 68.3%[31] Dividends - The company proposed a final dividend of HKD 0.24 per share, a 14.3% increase from HKD 0.21 in 2021[1] - The board of directors proposed a final dividend of HKD 0.24 per share for the year ending December 31, 2022, compared to HKD 0.21 per share in 2021, maintaining a payout ratio of approximately 40%[79] - The dividend will be paid in cash on or around June 28, 2023, subject to shareholder approval at the annual general meeting on May 17, 2023[79] Employee Costs - Employee costs rose to RMB 2,051,266 thousand in 2022, compared to RMB 1,845,566 thousand in 2021, representing an increase of 11.2%[18] - As of December 31, 2022, the total number of employees in the group was approximately 10,500, an increase from about 9,900 in 2021, with total employee costs amounting to RMB 2,051,266 thousand, up from RMB 1,845,566 thousand in 2021[60] Segment Performance - The clean energy segment revenue decreased by 5.5% to RMB 10,591,120 in 2022 from RMB 11,210,471 in 2021[43] - The chemical environment segment revenue increased by 38.2% to RMB 5,241,667 in 2022 from RMB 3,793,827 in 2021[43] - The liquid food segment's revenue rose by 5.8% to RMB 3,619,638, making up 18.5% of total revenue, slightly down from 18.6% in 2021[46] Future Outlook and Strategy - The group is focusing on expanding LNG import terminals in Europe and Asia, creating new opportunities for suppliers in sub-Saharan Africa[70] - The group is actively developing new markets such as white spirits and biopharmaceuticals, securing initial orders in these sectors[69] - The company plans to focus on breakthroughs in hydrogen production technologies, including blue and green hydrogen, and aims to establish production bases in Jiangsu and Hebei[75] Corporate Governance - The company has adhered to all corporate governance codes as stipulated by the Hong Kong Stock Exchange during the fiscal year ending December 31, 2022[83] - The audit committee has reviewed the group's annual performance and consolidated financial statements for the year ended December 31, 2022[84] - The independent auditor confirmed that the figures reported in the group's performance announcement for the year ended December 31, 2022, are consistent with the audited consolidated financial statements[85]

Financial Performance - Revenue for the first half of 2022 was RMB 8,948,693,000, representing a growth of 12.7% from RMB 7,940,016,000 in the same period of 2021[5] - Core profit rose by 34.5% to RMB 531,831,000, up from RMB 395,441,000 year-on-year[5] - Net profit for the period was RMB 453,619 thousand, a rise of 17.4% from RMB 386,305 thousand in 2021[11] - Basic earnings per share increased to RMB 0.219, up from RMB 0.195 in the same period last year[10] - The company reported a total comprehensive income of RMB 427,412 thousand for the period, slightly down from RMB 441,673 thousand in 2021[11] - The adjusted operating profit for the same period was RMB 660,527 thousand, up 14% from RMB 580,226 thousand in 2021[51] - The company recorded a profit of RMB 439.315 million for the six months ended June 30, 2022, compared to a profit of RMB 383.411 million for the same period in 2021, marking an increase of approximately 14.6%[19] Assets and Liabilities - Total assets increased by 9.8% to RMB 20,878,725,000 as of June 30, 2022, compared to RMB 19,024,673,000 at the end of 2021[5] - The total liabilities increased to RMB 12,200,215 thousand as of June 30, 2022, compared to RMB 10,524,996 thousand in 2021, reflecting a rise of 16%[54] - Non-current assets amounted to RMB 5,490,592 thousand, a marginal increase from RMB 5,441,478 thousand in the previous year[14] - The company’s net current assets were RMB 5,223,947 thousand, compared to RMB 5,071,926 thousand at the end of 2021[14] - The total equity attributable to the company's shareholders reached RMB 8,396.775 million as of June 30, 2022, compared to RMB 7,613.155 million at the end of June 2021, indicating an increase of approximately 10.3%[19] Cash Flow - Cash and cash equivalents increased significantly by 38.2% to RMB 4,384,547,000, compared to RMB 3,173,351,000 at the end of 2021[5] - Operating cash inflow for the six months ended June 30, 2022, was RMB 1,696,368 thousand, a significant improvement from a cash outflow of RMB 240,180 thousand in the same period of 2021[21] - Net cash from operating activities reached RMB 1,580,454 thousand, compared to a net cash outflow of RMB 408,780 thousand in the prior year[21] - The company incurred net cash outflow from investing activities of RMB 215,241 thousand, compared to RMB 137,624 thousand in the previous year[21] - The company paid dividends to shareholders totaling RMB 364,258 thousand, an increase from RMB 235,891 thousand in the same period of 2021[21] Market and Segment Performance - The clean energy segment's revenue slightly decreased by 4.8% to RMB 4,683,343,000, accounting for 52.3% of total revenue, down from 61.9% in 2021[119] - The chemical environment segment's revenue surged by 67.4% to RMB 2,550,409,000, representing 28.5% of total revenue, up from 19.2% in 2021[122] - The liquid food segment's revenue rose by 14.5% to RMB 1,714,941,000, making up 19.2% of total revenue, compared to 18.9% in 2021[122] - New orders signed in the first half of 2022 totaled RMB 10.7 billion, a 16.8% increase year-on-year[123] - The backlog of orders as of June 30, 2022, reached RMB 17.3 billion, a 41.7% increase compared to the same period last year[123] Research and Development - Research and development costs increased to RMB 217,949,000 in 2022 from RMB 196,686,000 in 2021, representing an increase of approximately 10.8%[61] - The group has initiated multiple R&D projects, including a 20-foot offshore low-temperature tank and a 1,500L large-volume LNG vehicle-mounted bottle[158] - The group successfully developed a 30MPa composite cylinder container and a 99MPa hydrogen storage system, maintaining market leadership in hydrogen storage and transportation[151] Shareholder and Stock Information - As of June 30, 2022, the major shareholder, China International Marine Containers (Group) Co., Ltd., holds 67.60% of the company's shares[180] - The total number of issued ordinary shares as of June 30, 2022, is 2,028,277,588[178] - The company granted a total of 120,370,000 stock options under the plan, with 29,941,000 options remaining unexercised[184] - The new stock option plan allows for a total of 193,660,608 options to be granted, representing 9.55% of the company's issued ordinary shares[188] Strategic Initiatives - The company aims to lead in clean energy, chemical environment, and liquid food sectors, focusing on technological advancement and product innovation[2] - The company plans to continue its market expansion and product development strategies, although specific new products or technologies were not detailed in the report[94] - The company is focusing on developing new products and technologies to support the low-carbon transformation in the liquor industry, with a target to reduce energy consumption per unit of industrial added value by 13.5% by 2025 compared to 2020 levels[172]

Financial Performance - Total revenue for 2021 reached RMB 18,424,763, an increase of 49.9% compared to RMB 12,289,567 in 2020[12]. - Operating profit for 2021 was RMB 1,212,559, reflecting a growth of 49.3% from RMB 811,991 in 2020[12]. - Net profit attributable to equity holders was RMB 883,581, up 52.4% from RMB 579,923 in the previous year[12]. - Basic earnings per share rose to RMB 0.447, a 52.6% increase from RMB 0.293 in 2020[12]. - The company reported a core profit of RMB 948,846, which is a 61.4% increase from RMB 587,884 in 2020[12]. - The total new orders signed by the company reached RMB 21.3 billion, a year-on-year increase of 50.1%[141]. - The backlog of orders at the end of 2021 rose by 31.4% to RMB 14.9 billion[142]. Assets and Liabilities - Total assets increased by 18.4% to RMB 19,024,673 from RMB 16,074,720 in 2020[12]. - Net assets rose by 13.8% to RMB 8,499,677 compared to RMB 7,471,358 in 2020[12]. - The total liabilities increased to RMB 10,524,996,000 from RMB 8,603,362,000 in 2020, reflecting a rise of 22.3%[163]. - The net cash balance decreased to RMB 1,757,260,000 from RMB 1,857,297,000 in 2020, primarily due to reduced operating cash inflows and increased investment cash outflows[161]. Revenue Segmentation - The clean energy segment's revenue surged by 38.8% to RMB 9,716,085,000, driven by strong demand for LNG tank containers and LPG vehicles[23]. - The chemical environment segment's revenue skyrocketed by 87.2% to RMB 3,793,827,000, attributed to rising prices of chemicals and derivatives[24]. - The liquid food segment's revenue rose by 25.4% to RMB 3,420,465,000, benefiting from new orders and the resumption of on-site projects[24]. Investments and Capital Expenditures - Capital expenditures for 2021 totaled RMB 986,909,000, an increase from RMB 628,590,000 in 2020, aimed at enhancing capacity and new business initiatives[168]. - The group issued zero-coupon convertible bonds totaling HKD 1,680,000,000, with a conversion price of HKD 11.78 per share, potentially converting into 142,614,601 shares[161]. Market and Industry Trends - The company is positioned to benefit from the accelerating development of the hydrogen energy industry, supported by national policies[52]. - The domestic LNG market saw a unique performance in 2021, with significant price increases and a shift in seasonal demand patterns[47]. - The demand for natural gas in China is expected to grow significantly, with consumption projected to reach 420-440 billion cubic meters by 2025, reflecting an annual increase of over 20 billion cubic meters and a growth rate of approximately 6%[75]. Sustainability and Innovation - The company aims to reduce carbon emissions by 40% by 2030 as part of its sustainability strategy[176]. - CIMC Enric is committed to advancing green development, as outlined in the national guidelines for establishing a green low-carbon circular economy system, emphasizing resource efficiency and ecological protection[55]. - The company is focusing on expanding its LNG storage capacity to improve the stability of natural gas supply, addressing the shortfall in urban gas supply capabilities[55]. Corporate Governance - The board has approved a new corporate governance policy to enhance transparency and accountability, aligning with international standards[193]. - The company has maintained compliance with all corporate governance codes as of December 31, 2021, ensuring robust risk management practices[194].