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].

Financial Performance - Revenue for the six months ended June 30, 2021, reached RMB 7,940,016 thousand, representing a 49.3% increase compared to the previous period[6] - Gross profit rose to RMB 1,180,601 thousand, a 56.0% increase from RMB 756,927 thousand[6] - Operating profit increased by 78.6% to RMB 513,960 thousand from RMB 287,778 thousand[6] - Net profit attributable to equity holders was RMB 383,411 thousand, up 77.5% from RMB 215,993 thousand[6] - Basic and diluted earnings per share increased to RMB 0.195, a rise of 78.9% from RMB 0.109[6] - Net profit for the period was RMB 386,305 thousand, which is a 88.1% increase from RMB 205,230 thousand in the prior year[11] - Total comprehensive income for the period reached RMB 441,673 thousand, significantly higher than RMB 188,391 thousand in the previous year[12] - The reported segment profit for the first half of 2021 was RMB 544,763 thousand, up 76.5% from RMB 308,332 thousand in the first half of 2020[37] - The company reported a net profit before tax of RMB 484,275 thousand for the first half of 2021, compared to RMB 268,403 thousand for the same period in 2020, marking an increase of 80.4%[37] Assets and Liabilities - Total assets increased to RMB 17,627,726 thousand, up 9.7% from RMB 16,074,720 thousand as of December 31, 2020[5] - Total liabilities as of June 30, 2021, were RMB 9,801,646 thousand, which is an increase of 13.9% from RMB 8,603,362 thousand at the end of 2020[37] - The debt-to-equity ratio increased to 16.6%, up from 13.6%[5] - The company’s total liabilities decreased to RMB 4,735,553 thousand as of June 30, 2021, from RMB 4,608,613 thousand at the beginning of the year[18] - The company’s total assets as of June 30, 2021, were RMB 7,613,155 thousand, compared to RMB 7,280,076 thousand at the beginning of the year[18] Cash Flow - Cash and cash equivalents decreased to RMB 2,130,233 thousand, down 16.8% from RMB 2,560,890 thousand[5] - The net cash used in operating activities for the six months ended June 30, 2021, was RMB (240,180) thousand, compared to RMB 272,276 thousand for the same period in 2020[20] - The net cash generated from financing activities was RMB 127,414 thousand, a significant improvement from the net cash used of RMB (217,585) thousand in the previous year[20] - The company reported a net cash outflow of RMB 29,672,000 from the acquisitions after accounting for cash held by the acquired subsidiaries[81] Segment Performance - Revenue from external customers for the clean energy segment reached RMB 4,452,048 thousand for the six months ended June 30, 2021, compared to RMB 2,993,243 thousand for the same period in 2020, marking an increase of about 48.73%[34] - The chemical environment segment reported revenue of RMB 1,609,975 thousand for the first half of 2021, up from RMB 1,097,981 thousand in the same period of 2020, which is an increase of approximately 46.49%[34] - The liquid food segment generated revenue of RMB 1,457,118 thousand for the six months ended June 30, 2021, compared to RMB 1,021,611 thousand in the same period of 2020, representing an increase of around 42.73%[34] Research and Development - Research and development costs for the first half of 2021 were RMB 196,686 thousand, which is a 51.0% increase from RMB 130,088 thousand in the same period of 2020[44] - The company is focusing on R&D in hydrogen energy equipment and applications, achieving major advancements in the field[102] Shareholder Information - As of June 30, 2021, the major shareholder China International Marine Containers (Group) Co., Ltd. holds 67.80% of the issued share capital[115] - The company aims to incentivize senior management and core personnel through a restricted share reward plan, with a maximum of 50,000,000 shares available[122] Corporate Governance - The company has complied with all provisions of the Corporate Governance Code as of June 30, 2021[130] - The Audit Committee, consisting of four independent non-executive directors, reviewed the unaudited interim financial report for the six months ended June 30, 2021[131] Market Outlook - The outlook for LNG storage and transportation equipment and end-user markets is expected to continue growing, driven by national carbon reduction policies and increasing demand for cleaner energy[99] - The clean energy segment is expected to benefit from the growing demand for LNG-powered vessels, with a forecast of approximately 7,000 LNG-powered ships globally by 2030[100]

Company Overview This section introduces the company's core businesses, vision, and presents a five-year financial overview and key financial highlights for the reporting period [About Us](index=2&type=section&id=About%20Us) CIMC Enric Holdings Limited (Stock Code: 3899), a member of CIMC Group listed on HKEX since 2005, specializes in the design, development, manufacturing, engineering, sales, and operation of various transportation, storage, and processing equipment across clean energy, chemical and environmental, and liquid food industries, also providing technical maintenance services globally with production bases and R&D centers in China, Germany, Belgium, UK, and Canada - The company's vision is to become a leading technology-driven enterprise in the clean energy, chemical and environmental, and liquid food sectors[2](index=2&type=chunk) - The company focuses on three major business areas: clean energy, chemical and environmental, and liquid food, offering equipment manufacturing, engineering services, and technical maintenance[3](index=3&type=chunk) [Five-Year Financial Overview](index=4&type=section&id=Five-Year%20Financial%20Overview) This report reviews the company's key financial data over the past five years, showing revenue fluctuations after peaking in 2018, with 2020 revenue at **RMB 12.29 billion**, operating profit declining to **RMB 812 million** in 2020 after a 2019 high, and total assets steadily growing from **RMB 12.89 billion** in 2016 to **RMB 16.08 billion** in 2020 Five-Year Financial Data Overview (As of December 31) | Indicator (RMB Thousand) | 2020 | 2019 | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | 12,289,567 | 13,743,019 | 13,051,651 | 10,706,590 | 7,968,403 | | **Operating Profit** | 811,991 | 1,138,573 | 1,098,087 | 743,960 | 665,559 | | **Profit/(Loss) for the Year** | 566,208 | 901,405 | 782,450 | 422,898 | (936,680) | | **Total Assets** | 16,074,720 | 15,900,033 | 15,853,354 | 14,176,233 | 12,888,423 | | **Net Assets** | 7,471,358 | 7,384,511 | 6,545,794 | 5,869,779 | 5,302,065 | [Financial Highlights](index=5&type=section&id=Financial%20Highlights) In 2020, the company's total assets slightly increased by 1.1% to **RMB 16.07 billion**, but operating performance significantly declined due to external factors, with full-year revenue down 10.6% to **RMB 12.29 billion**, gross profit down 10.9%, and operating profit sharply decreasing by 28.7% to **RMB 812 million**, while net profit attributable to shareholders was **RMB 580 million**, a 36.3% year-on-year decrease, and all profit margins, including operating profit margin (from 8.3% to 6.6%) and net profit margin (from 6.6% to 4.7%), also declined 2020 Operating Performance Highlights (As of December 31) | Indicator | 2020 (RMB Thousand) | 2019 (RMB Thousand) | Change (+/-) | | :--- | :--- | :--- | :--- | | **Revenue** | 12,289,567 | 13,743,019 | -10.6% | | **Gross Profit** | 2,094,723 | 2,351,294 | -10.9% | | **Operating Profit** | 811,991 | 1,138,573 | -28.7% | | **Profit Attributable to Equity Holders** | 579,923 | 911,007 | -36.3% | | **Earnings Per Share - Basic (RMB)** | 0.293 | 0.464 | -36.9% | 2020 Key Statistics | Indicator | 2020 | 2019 | Change (+/-) | | :--- | :--- | :--- | :--- | | **Gross Profit Margin** | 17.0% | 17.1% | -0.1 percentage points | | **Operating Profit Margin** | 6.6% | 8.3% | -1.7 percentage points | | **Net Profit Margin** | 4.7% | 6.6% | -1.9 percentage points | | **Return on Equity** | 8.0% | 13.5% | -5.5 percentage points | Chairman's Report The Chairman's Report details the company's 2020 performance amidst global challenges, highlighting a decline in consolidated revenue and net profit, diversified segment performance, strategic initiatives in hydrogen energy and liquid food, and a proposed final dividend [Annual Performance](index=8&type=section&id=Annual%20Performance) Global COVID-19 impacts hindered the Group's commercial activities in 2020, leading to an overall performance decline, with consolidated revenue down 10.6% to **RMB 12.29 billion** and net profit attributable to shareholders down 36.3% to **RMB 580 million**, while business segments showed varied performance: Clean Energy revenue grew 2.7% (57.0% of total), Chemical and Environmental revenue decreased 40.1% (16.5% of total), and Liquid Food revenue decreased 11.3% (22.2% of total) 2020 Annual Performance Overview | Indicator | 2020 (RMB) | 2019 (RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Consolidated Revenue** | 12.29 billion | 13.74 billion | -10.6% | | **Profit Attributable to Equity Holders** | 0.58 billion | 0.91 billion | -36.3% | | **Basic Earnings Per Share** | 0.293 | 0.464 | -36.9% | Revenue Performance by Business Segment | Business Segment | 2020 Revenue (RMB) | Year-on-Year Change | Proportion of Total Revenue | | :--- | :--- | :--- | :--- | | **Clean Energy** | 7.002 billion | +2.7% | 57.0% | | **Chemical and Environmental** | 2.027 billion | -40.1% | 16.5% | | **Liquid Food** | 2.728 billion | -11.3% | 22.2% | [Business Review and Outlook](index=8&type=section&id=Business%20Review%20and%20Outlook) The company maintains a cautiously optimistic outlook for its business segments, with Clean Energy poised to benefit from China's energy transition and "carbon neutrality" goals, offering promising prospects in natural gas and hydrogen, while Chemical and Environmental, despite short-term pressure, sees long-term growth in tank containers and is considering an A-share spin-off for CIMC Enric Environmental Technology, and Liquid Food, despite pandemic impacts, secured over **USD 200 million** in major project contracts and expanded into new markets and the distilled spirits value chain through the acquisition of McMillan - Clean Energy: Actively aligning with the national "14th Five-Year Plan" and "carbon neutrality" goals, increasing investment in natural gas and hydrogen, with breakthroughs in hydrogen refueling station projects and the Yangtze River Delta hydrogen energy ecosystem[23](index=23&type=chunk)[26](index=26&type=chunk) - Chemical and Environmental: Considering the spin-off listing of CIMC Enric Environmental Technology Co Ltd on the A-share market to provide a development platform for tank container and new environmental businesses[28](index=28&type=chunk) - Liquid Food: Secured three major project contracts totaling over **USD 200 million** in the Western Hemisphere market before Q4 2020, and completed the acquisition of McMillan, a UK distiller manufacturer, to expand its distilled spirits business[30](index=30&type=chunk) [Social Responsibility](index=10&type=section&id=Social%20Responsibility) In 2020, the company actively fulfilled its social responsibilities by urgently producing over **30 medical liquid oxygen storage tanks** to support key hospitals in Hubei during the pandemic, donating epidemic prevention supplies to **32 overseas clients**, and having its subsidiary, Shijiazhuang Enric Gas Machinery Co., Ltd., recognized as a "National Green Factory" for its energy-saving and waste heat recovery initiatives - During the pandemic, the Group established an emergency team to produce medical liquid oxygen storage tanks to support key hospitals such as Huoshenshan in Hubei[32](index=32&type=chunk) - Donated masks and other epidemic prevention supplies to **32 overseas clients** in countries including South Korea, the Philippines, and Nigeria, supporting global anti-epidemic efforts[32](index=32&type=chunk) - Its subsidiary, Shijiazhuang Enric, was awarded the "National Green Factory" title, achieving energy conservation and emission reduction through energy-saving replacements and waste heat recovery[34](index=34&type=chunk) Management Discussion and Analysis This section provides an in-depth analysis of the company's three core business segments, covering industry overview, operational performance, future plans, R&D progress, qualifications, and cost control measures, alongside a detailed financial review of capital expenditures, expense variations, financial resources, liquidity, and foreign exchange risks [Business Review](index=12&type=section&id=Business%20Review) This section details the operational performance of the three business segments, noting positive revenue growth in Clean Energy driven by natural gas demand and hydrogen policies, a significant revenue decline in Chemical and Environmental due to global pandemic and trade friction but with strategic shifts to after-market services and smart products, and improved performance in Liquid Food in H2 despite project delays, securing major new contracts and expanding into distilled spirits equipment through acquisition [Clean Energy](index=12&type=section&id=Clean%20Energy) In 2020, the Clean Energy segment's revenue grew by 2.7% year-on-year to **RMB 7.0 billion**, accounting for 57.0% of the Group's total revenue, driven by increased demand for LNG vehicle and marine fuel tanks, while the industry benefited from China's growing natural gas consumption and "carbon neutrality" goals, with the company achieving strong sales across the natural gas value chain and planning to deepen its LNG business and seize new opportunities in hydrogen and unconventional natural gas Clean Energy Segment Operating Performance | Indicator | 2020 | 2019 | | :--- | :--- | :--- | | **Revenue** | 7,001,558,000 RMB | 6,814,772,000 RMB | | **Year-on-Year Change** | +2.7% | - | | **Proportion of Group's Total Revenue** | 57.0% | 49.6% | - Industry Drivers: China's apparent natural gas consumption increased by **5.6%** year-on-year in 2020, and total LNG tank truck consumption grew by **37.5%**, providing a market foundation for business growth[41](index=41&type=chunk) - Hydrogen Energy Layout: The company actively expanded its hydrogen energy business, establishing a hydrogen equipment manufacturing industrial base and forming a joint venture with Hexagon Purus to jointly develop the compressed hydrogen storage and transportation market in China and Southeast Asia[62](index=62&type=chunk)[70](index=70&type=chunk) - R&D Achievements: Successfully developed the world's first **45-foot LNG tank container**, China's largest single **685m³ LNG marine fuel tank**, and achieved batch sales of **50MPa hydrogen storage cylinder bundles** for hydrogen refueling stations during the year[72](index=72&type=chunk)[75](index=75&type=chunk) [Chemical and Environmental](index=25&type=section&id=Chemical%20and%20Environmental) In 2020, the Chemical and Environmental segment's revenue decreased by 40.1% year-on-year to **RMB 2.03 billion**, representing 16.5% of the Group's total revenue, primarily due to the global pandemic and a downturn in the chemical industry, which led to a decline in tank container demand, yet the "CIMC Tank" brand maintained its global market leadership for **17 consecutive years**, and the company is actively transitioning from manufacturing to services, expanding into after-market services, smart products like the "Tank Journey" IoT platform, and new environmental businesses, with its first hazardous waste comprehensive utilization project commencing operations in Q4 Chemical and Environmental Segment Operating Performance | Indicator | 2020 | 2019 | | :--- | :--- | :--- | | **Revenue** | 2,026,944,000 RMB | 3,385,706,000 RMB | | **Year-on-Year Change** | -40.1% | - | | **Proportion of Group's Total Revenue** | 16.5% | 24.6% | - Market Position: The "CIMC Tank" brand products have maintained a global market leading position for **17 consecutive years**[94](index=94&type=chunk) - Business Expansion: Accelerating the transition from manufacturing to services, acquiring UBH intellectual property in the UK, achieving profitability in the Jiaxing depot operation, and launching the "Tank Journey" IoT platform[95](index=95&type=chunk) - New Environmental Business: Obtained environmental engineering and safety permits, with the first hazardous waste comprehensive utilization cooperation project officially commencing operations in Q4 2020[97](index=97&type=chunk) [Liquid Food](index=33&type=section&id=Liquid%20Food) In 2020, the Liquid Food segment's revenue decreased by 11.3% year-on-year to **RMB 2.73 billion**, accounting for 22.2% of the Group's total revenue, primarily due to pandemic-induced delays in overseas projects, yet the segment secured three major project contracts totaling over **USD 200 million** before Q4 2020, and strategically completed the acquisition of McMillan, a Scottish copper still supplier, achieving comprehensive coverage of the distilled spirits equipment value chain and actively expanding into new markets like Chinese Baijiu and sparkling water Liquid Food Segment Operating Performance | Indicator | 2020 | 2019 | | :--- | :--- | :--- | | **Revenue** | 2,727,872,000 RMB | 3,076,961,000 RMB | | **Year-on-Year Change** | -11.3% | - | | **Proportion of Group's Total Revenue** | 22.2% | 22.4% | - Major Contracts: Secured three major contracts totaling over **USD 200 million** in the Western Hemisphere market before Q4 2020[116](index=116&type=chunk) - Strategic Acquisition: Completed the acquisition of McMillan, a leading Scottish copper still supplier, in April 2020, becoming one of the largest global suppliers in the distilled spirits industry[117](index=117&type=chunk) [Other Analysis](index=37&type=section&id=Other%20Analysis) The Group holds numerous production certifications and qualifications from local and international bodies, along with over **970 patents**, and in 2020, achieved significant cost control results through a full value chain lean improvement system, optimized supply chain management, and production-sales synergy, accumulating cost reductions of approximately **RMB 27.8 million** and procurement cost reductions of nearly **RMB 80 million** - Qualifications and Patents: Holds multiple international certifications, including from the American Society of Mechanical Engineers and China Classification Society, and possesses over **970 patents**, with more than **120 invention patents**[127](index=127&type=chunk) - Cost Control Effectiveness: In 2020, through lean improvement and cost benchmarking, accumulated cost reductions of approximately **RMB 27.8 million**; optimized supplier management resulted in procurement cost reductions of nearly **RMB 80 million**[128](index=128&type=chunk)[130](index=130&type=chunk) [Financial Review](index=39&type=section&id=Financial%20Review) This section provides a detailed analysis of the Group's financial position, including a **RMB 493 million** capital expenditure in 2020, a 21.3% decrease in selling expenses due to the pandemic, an 11.0% increase in administrative expenses from higher salaries and R&D, a 28.0% reduction in finance costs, robust cash flow with **RMB 960 million** net cash inflow from operating activities, zero net debt-to-equity ratio, and a slight increase in total assets to **RMB 16.07 billion** [Financial Analysis](index=39&type=section&id=Financial%20Analysis) In 2020, the Group's capital expenditure was **RMB 493 million**, a year-on-year decrease, while selling expenses declined by 21.3% due to reduced promotion and travel amidst the pandemic, administrative expenses rose by 11.0% due to increased salaries, R&D, and goodwill impairment provisions, financial asset impairment losses increased to **RMB 129 million** due to a more conservative assessment of trade receivables, finance costs decreased by 28.0% due to lower borrowing levels, and income tax expense rose by 12.3% primarily due to increased profit contributions from European subsidiaries 2020 Capital Expenditure (By Business Segment) | Business Segment | Capital Expenditure (RMB Thousand) | | :--- | :--- | | **Clean Energy** | 162,213 | | **Chemical and Environmental** | 113,538 | | **Liquid Food** | 73,213 | | **Non-segment** | 144,333 | | **Total** | **493,297** | - Selling expenses decreased by **21.3%** year-on-year to **RMB 283 million**, primarily due to reduced commissions, advertising, and promotional expenses impacted by the pandemic[136](index=136&type=chunk) - Administrative expenses increased by **11.0%** year-on-year to **RMB 1.233 billion**, mainly due to higher salaries, R&D expenses, and goodwill impairment provisions[137](index=137&type=chunk) [Financial Resources Analysis](index=41&type=section&id=Financial%20Resources%20Analysis) As of the end of 2020, the Group held **RMB 2.56 billion** in cash and cash equivalents, demonstrating a robust financial position, with net cash generated from operating activities increasing year-on-year to **RMB 960 million**, a net cash balance of **RMB 1.86 billion**, and a zero net debt-to-equity ratio, while total assets slightly increased by 1.2% to **RMB 16.07 billion** and net asset value per share rose to **RMB 3.715**, indicating ample funding for future capital expenditures and operational needs Cash Flow Overview (As of December 31) | Activity | 2020 (RMB Thousand) | 2019 (RMB Thousand) | | :--- | :--- | :--- | | **Net Cash From Operating Activities** | 960,082 | 861,545 | | **Net Cash Used in Investing Activities** | (480,840) | (550,759) | | **Net Cash Used in Financing Activities** | (406,440) | (703,416) | | **Net Increase/(Decrease) in Cash** | 72,802 | (392,630) | - As of the end of 2020, the Group held a net cash balance of **RMB 1.86 billion**, with a net debt-to-equity ratio of zero[147](index=147&type=chunk) - Total assets slightly increased by **1.2%** to **RMB 16.07 billion**, and net asset value per share rose from **RMB 3.673** to **RMB 3.715**[150](index=150&type=chunk) Directors and Senior Management This section provides detailed backgrounds and résumés of the company's Board of Directors and senior management, with the Board comprising nine members, including Chairman and Non-executive Director Mr. Gao Xiang, General Manager and Executive Director Mr. Yang Xiaohu, and several other Non-executive and Independent Non-executive Directors, while the senior management team consists of Vice General Managers and a Chief Financial Officer with extensive experience in their respective fields - Mr. Gao Xiang, Chairman of the Board, joined the Group in 2009, previously served as General Manager, and is currently the President of CIMC Group[156](index=156&type=chunk) - Mr. Yang Xiaohu, General Manager and Executive Director, has held his current position since 2017, possessing years of market operation and management experience within the Group[157](index=157&type=chunk) Corporate Governance Report This report details the company's commitment to high corporate governance standards, compliance with the Corporate Governance Code in 2020, outlining the Board's structure, responsibilities, and operations, along with the functions of its Audit, Remuneration, Nomination, and newly established Sustainability Committees, and describes robust risk management, internal control systems, and shareholder communication mechanisms to protect shareholder interests and enhance enterprise value [Board of Directors](index=48&type=section&id=Board%20of%20Directors) The Board of Directors, responsible for leading and overseeing the Group, comprises nine members, including four independent non-executive directors, ensuring sufficient independence, and regularly convenes to review Group performance, financial statements, risk management systems, and make decisions on significant strategies and transactions, with a clear separation of duties between the Chairman's oversight and the General Manager's daily management to ensure balanced responsibilities, while the company provides continuous professional training for directors and has formal procedures for director appointment and remuneration determination - The Board of Directors consists of nine members, including four independent non-executive directors, who constitute more than one-third of the Board, meeting governance requirements[187](index=187&type=chunk) - The responsibilities of the Board and management are clearly separated, with Mr. Gao Xiang, the Chairman, overseeing Board operations and Group strategy, and Mr. Yang Xiaohu, the General Manager, responsible for execution and daily management[186](index=186&type=chunk) - The company has adopted the "Code for Securities Transactions by Relevant Persons," and all directors confirmed compliance with the code throughout 2020[193](index=193&type=chunk) [Board Committees](index=55&type=section&id=Board%20Committees) To streamline functions, the Board has established an Audit Committee, Remuneration Committee, Nomination Committee, and a newly formed Sustainability Committee in 2020, each with clear written terms of reference, where the Audit Committee oversees financial reporting, risk management, and external auditors, the Remuneration Committee sets compensation policies for directors and senior management, the Nomination Committee handles director nominations and appointments, and the Sustainability Committee addresses ESG-related matters - The Audit Committee, composed of four independent non-executive directors, is responsible for overseeing financial reporting, risk management, and internal and external audits[218](index=218&type=chunk) - The Remuneration Committee, comprising one non-executive director and two independent non-executive directors, is responsible for formulating remuneration policies for directors and senior management[222](index=222&type=chunk) - The Nomination Committee, consisting of the Chairman and two independent non-executive directors, is responsible for the nomination, appointment, and succession planning of directors[225](index=225&type=chunk) - A Sustainability Committee was newly established in December 2020, comprising the Chairman, an executive director, and a non-executive director, responsible for ESG-related matters[196](index=196&type=chunk)[226](index=226&type=chunk)[227](index=227&type=chunk) [Accountability and Audit](index=60&type=section&id=Accountability%20and%20Audit) The Board is responsible for ensuring balanced, clear, and understandable financial reporting, and the company has established effective risk management and internal control systems to manage risks, safeguard shareholder investments and assets, with the Board continuously monitoring the system's effectiveness through its internal audit unit and confirming its effectiveness and adequacy throughout 2020, while also implementing an internal whistleblowing system and inside information disclosure mechanism to ensure compliant operations - The Board confirmed that it has reviewed the Group's risk management and internal control systems and considers them to have been effective and adequate throughout the year[236](index=236&type=chunk) - The company has an internal whistleblowing system, allowing employees to raise concerns about misconduct related to financial reporting, internal controls, and other matters[235](index=235&type=chunk) [Communication with Shareholders](index=62&type=section&id=Communication%20with%20Shareholders) The company maintains effective communication with shareholders and the investment market through various channels, including analyst conferences, roadshows, announcements, and financial reports, with the Annual General Meeting providing a platform for direct interaction between shareholders and the Board, and clear procedures established for shareholders to convene extraordinary general meetings, nominate director candidates, and raise inquiries, thereby safeguarding shareholder rights - The company maintains contact with investors and analysts through analyst and media briefings, one-on-one meetings, and roadshows[240](index=240&type=chunk) - Shareholders holding not less than **10%** of the voting shares may request to convene an extraordinary general meeting[244](index=244&type=chunk) Directors' Report This report outlines the Group's principal activities, financial performance, risk factors, dividend policy, and compliance for 2020, focusing on clean energy, chemical and environmental, and liquid food equipment businesses, with a proposed final dividend of **HKD 0.14** per share, and discloses details on directors' and major shareholders' interests, share option schemes, restricted share incentive plans, significant connected transactions, and litigation, confirming compliance with public float requirements [Principal Activities and Business Review](index=65&type=section&id=Principal%20Activities%20and%20Business%20Review) The Group primarily engages in the design, manufacturing, engineering, and sales of equipment for the clean energy, chemical and environmental, and liquid food industries, with 2020 revenue decreasing by 10.6% year-on-year and net profit attributable to shareholders declining by 36.3%, facing risks from macroeconomic conditions, government policies, and industry trends, for which it has developed corresponding strategies, while also prioritizing environmental protection and fostering strong relationships with key stakeholders - The Group's principal activities involve the design, development, manufacturing, engineering, sales, and operation of transportation, storage, and processing equipment for the clean energy, chemical and environmental, and liquid food industries[254](index=254&type=chunk) - Key risk factors include macroeconomic conditions, government energy policies, industry development trends, and the effectiveness of the company's internal strategy execution[260](index=260&type=chunk) [Dividends and Equity-Linked Agreements](index=67&type=section&id=Dividends%20and%20Equity-Linked%20Agreements) The Board recommends a final dividend of **HKD 0.14** per share for 2020, and the company operates share option schemes and restricted share incentive plans for employee motivation, with **48,634,000 outstanding share options** as of year-end 2020, and the second vesting condition of the 2018 restricted share incentive plan met, resulting in **1,020,000 shares** vesting to directors during the year, while a new "2020 Share Award Scheme" was adopted in April 2020, and a special equity incentive plan for the Chemical and Environmental Business Center was established in November - The Board recommends a final dividend of **HKD 0.14** per ordinary share for 2020[275](index=275&type=chunk) - As of the end of 2020, **48,634,000 share options** remained unexercised under the 2006 Share Option Scheme[301](index=301&type=chunk) - The second vesting condition of the 2018 Restricted Share Incentive Plan was met, with a total of **13,417,050 restricted shares** vesting during the year[316](index=316&type=chunk)[705](index=705&type=chunk) - The company adopted a new "2020 Share Award Scheme" on April 3, 2020, and **37,074,000 shares** were purchased by the trustee during the year[318](index=318&type=chunk)[352](index=352&type=chunk) [Litigation and Connected Transactions](index=77&type=section&id=Litigation%20and%20Connected%20Transactions) During the reporting period, the company's wholly-owned subsidiary, Enric Shenzhen, won its lawsuit against SOEG PTE LTD, requiring no provision for losses, while the Group has multiple continuing connected transactions with its controlling shareholder, CIMC Group, and its subsidiaries, including financial services, product sales, procurement, and processing services, all of which have been annually reviewed by independent non-executive directors and auditors, confirming their fair and reasonable terms and alignment with the overall interests of shareholders - The lawsuit between subsidiary Enric Shenzhen and SOEG PTE LTD was won on final appeal, requiring no provision for losses[329](index=329&type=chunk) - The Group has multiple continuing connected transactions with CIMC Group, including a maximum daily deposit balance of **RMB 418 million** with CIMC Finance and purchases from CIMC Group amounting to **RMB 233 million**[331](index=331&type=chunk)[332](index=332&type=chunk) Independent Auditor's Report PricewaterhouseCoopers, the independent auditor, issued an unmodified opinion on the company's consolidated financial statements as of December 31, 2020, affirming that the statements fairly and truly reflect the Group's financial position, performance, and cash flows, and are properly prepared in compliance with the disclosure requirements of the Hong Kong Companies Ordinance, with "recoverability of trade receivables" and "goodwill impairment" identified as key audit matters, for which the auditor performed relevant procedures - Auditor's Opinion: The consolidated financial statements are considered to fairly and truly reflect the Group's financial position in accordance with Hong Kong Financial Reporting Standards and are properly prepared in compliance with the Hong Kong Companies Ordinance[358](index=358&type=chunk) - Key Audit Matter One: Recoverability of trade receivables. As of year-end, the carrying amount of trade receivables was **RMB 2.01 billion**, with a provision of **RMB 329 million**; the auditor focused on this and performed relevant audit procedures[364](index=364&type=chunk) - Key Audit Matter Two: Goodwill impairment. As of year-end, the carrying amount of goodwill was **RMB 237 million**, with an annual impairment provision of **RMB 40.22 million**; the auditor reviewed key assumptions in the impairment assessment[368](index=368&type=chunk) Consolidated Financial Statements This section presents the Group's consolidated financial statements, including the statement of profit or loss, statement of financial position, and statement of cash flows, providing a comprehensive overview of its financial performance, assets, liabilities, equity, and cash movements for the reporting period [Consolidated Statement of Profit or Loss](index=88&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) For the year ended December 31, 2020, the company reported revenue of **RMB 12.29 billion**, a 10.6% year-on-year decrease, with gross profit at **RMB 2.09 billion** and operating profit at **RMB 812 million**, while profit for the year was **RMB 566 million**, a 37.2% year-on-year decrease, and profit attributable to equity holders of the company was **RMB 580 million**, with basic earnings per share at **RMB 0.293** Consolidated Statement of Profit or Loss Summary | Item (RMB Thousand) | 2020 | 2019 | | :--- | :--- | :--- | | **Revenue** | 12,289,567 | 13,743,019 | | **Gross Profit** | 2,094,723 | 2,351,294 | | **Operating Profit** | 811,991 | 1,138,573 | | **Profit Before Tax** | 773,259 | 1,085,812 | | **Profit for the Year** | 566,208 | 901,405 | | **Attributable to Equity Holders of the Company** | 579,923 | 911,007 | [Consolidated Statement of Financial Position](index=90&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of December 31, 2020, the Group's total assets were **RMB 16.07 billion**, a slight increase of 1.1% from **RMB 15.90 billion** in the prior year, with total liabilities at **RMB 8.60 billion**, net assets at **RMB 7.47 billion**, net current assets at **RMB 3.58 billion**, and equity attributable to equity holders of the company at **RMB 7.28 billion** Consolidated Statement of Financial Position Summary | Item (RMB Thousand) | As of December 31, 2020 | As of December 31, 2019 | | :--- | :--- | :--- | | **Total Assets** | 16,074,720 | 15,900,033 | | **Total Liabilities** | 8,603,362 | 8,515,522 | | **Net Assets** | 7,471,358 | 7,384,511 | | **Net Current Assets** | 3,576,660 | 3,721,040 | | **Equity Attributable to Equity Holders of the Company** | 7,280,076 | 7,136,108 | [Consolidated Statement of Cash Flows](index=94&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) For the year 2020, the Group's net cash generated from operating activities increased to **RMB 960 million** from **RMB 862 million** in the previous year, with net cash used in investing activities at **RMB 481 million** and net cash used in financing activities at **RMB 406 million**, resulting in a net increase in cash and cash equivalents of **RMB 72.8 million** for the year, and an ending balance of **RMB 2.56 billion** Consolidated Statement of Cash Flows Summary | Item (RMB Thousand) | 2020 | 2019 | | :--- | :--- | :--- | | **Net Cash From Operating Activities** | 960,082 | 861,545 | | **Net Cash Used in Investing Activities** | (480,840) | (550,759) | | **Net Cash Used in Financing Activities** | (406,440) | (703,416) | | **Net Increase/(Decrease) in Cash and Cash Equivalents** | 72,802 | (392,630) | | **Cash and Cash Equivalents as of December 31** | 2,560,890 | 2,534,752 |

Financial Performance - Total revenue for the first half of 2020 was RMB 5,319,352 thousand, a decrease of 19.2% compared to RMB 6,584,418 thousand in the same period of 2019[7]. - Net profit attributable to equity holders was RMB 215,993 thousand, down 43.6% from RMB 382,879 thousand in 2019[7]. - Basic earnings per share decreased by 44.4% to RMB 0.109 from RMB 0.196 in the previous year[7]. - The company's profit for the six months ended June 30, 2020, was RMB 205,230 thousand, a decrease of 47% compared to RMB 387,433 thousand for the same period in 2019[11]. - Total comprehensive income for the period was RMB 188,391 thousand, down 51% from RMB 388,400 thousand in the previous year[11]. - The reported segment profit for the first half of 2020 was RMB 308,332, a decrease of 50.7% compared to RMB 625,085 in 2019[28]. - Revenue from the sale of goods was RMB 4,058,090, down 6.5% from RMB 4,340,974 in the same period of 2019[31]. - Revenue from engineering project contracts was RMB 1,261,262, a decline of 43.8% from RMB 2,243,444 in 2019[31]. - The overall gross profit margin declined by 1.1 percentage points to 14.2% from 15.3% in 2019[69]. - Operating profit margin decreased by 2.3 percentage points to 5.4% from 7.7% in the same period last year, with operating profit down by 43.1%[69]. Assets and Liabilities - Total assets as of June 30, 2020, were RMB 15,758,966 thousand, a slight decrease of 0.9% from RMB 15,900,033 thousand at the end of 2019[6]. - The company's total liabilities were RMB 7,606,083 thousand, an increase from RMB 7,397,817 thousand at the end of 2019[13]. - The net asset value of the company was RMB 7,237,044 thousand as of June 30, 2020, down from RMB 7,384,511 thousand at the end of 2019[13]. - The total assets of the reporting segments as of June 30, 2020, were RMB 13,821,084 thousand, slightly down from RMB 14,091,345 thousand as of December 31, 2019[26]. - The total liabilities as of June 30, 2020, were RMB 8,521,922, which is relatively stable compared to RMB 8,515,522 at the end of 2019[29]. Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2020, was RMB 227,466,000, compared to a cash outflow of RMB 296,124,000 for the same period in 2019[17]. - The company reported a net cash outflow from investing activities of RMB 214,663,000 for the first half of 2020, compared to RMB 258,613,000 in the previous year[17]. - The net cash used in financing activities was RMB 217,585,000 for the first half of 2020, a significant decrease from RMB 527,633,000 in the same period of 2019[17]. - The company's cash and cash equivalents decreased by RMB 204,782,000 during the first half of 2020, compared to a decrease of RMB 1,082,370,000 in the same period of 2019[17]. - Cash and cash equivalents as of June 30, 2020, were RMB 2,330,622,000, a decrease of 8.0% from RMB 2,534,752,000 as of December 31, 2019[44]. Inventory and Receivables - Inventory turnover days increased to 149 days from 116 days, indicating a longer holding period for inventory[7]. - Total inventory as of June 30, 2020, was RMB 3,856,692,000, an increase of 4.9% compared to RMB 3,676,319,000 as of December 31, 2019[40]. - Trade receivables as of June 30, 2020, amounted to RMB 2,634,336,000, a decrease of 3.0% from RMB 2,715,828,000 as of December 31, 2019[41]. - Trade payables as of June 30, 2020, were RMB 2,241,025,000, a decrease of 7.4% from RMB 2,420,392,000 as of December 31, 2019[46]. Subsidiaries and Acquisitions - The company has over 20 subsidiaries globally, with production bases and advanced R&D centers in multiple countries[4]. - The company acquired 100% of Lindenau Full Tank Services GmbH for €3,010,000 (approximately RMB 23,328,000) on January 1, 2020[61]. - The company also acquired 100% of McMillan (Coppersmiths & Fabricators) Ltd. for £3,800,000 (approximately RMB 33,223,000) on April 3, 2020[61]. - Total cash outflow for acquisitions amounted to RMB 52,280 thousand after accounting for cash held by acquired subsidiaries[62]. Research and Development - The research and development costs for the first half of 2020 were RMB 130,088, an increase of 4.3% from RMB 125,015 in 2019[35]. - The clean energy division has successfully completed multiple R&D projects, including the development of an active intelligent gas supply system for LNG vehicles, ensuring stable pressure and power output[83]. - The division has developed the world's first 45-foot LNG tank container with a lightweight frame structure and large volume design, which has already secured export orders[83]. - The division is actively expanding into the environmental industry, focusing on industrial hazardous waste management, which has high technical and qualification barriers, and significant growth potential[87]. Market and Segment Performance - The clean energy segment generated revenue of RMB 2,993,243 thousand from external customers, while the chemical environment segment generated RMB 1,072,219 thousand[26]. - The clean energy segment's revenue fell by 4.1% to RMB 2,993,243,000, accounting for 56.3% of total revenue, up from 47.4% in 2019[67]. - The chemical environment segment's revenue dropped by 44.5% to RMB 1,072,219,000, representing 20.2% of total revenue, down from 29.4% in 2019[67]. - The liquid food segment's revenue decreased by 32.2% to RMB 1,021,611,000, making up 19.2% of total revenue, down from 22.9% in 2019[68]. Shareholder Information - As of June 30, 2020, the total issued A-shares of the company amounted to 1,526,182,872 shares, with the percentage calculations based on this figure[109]. - Major shareholder 中集 holds 1,371,016,211 shares, representing 68.20% of the total issued share capital[111]. - The company has granted stock options for a total of 76,620,000 shares under its incentive plan as of June 30, 2020[113]. - The exercise price for the stock options is set at RMB 8.06 per share, with 75% of the options exercisable from September 28, 2014, to September 27, 2020[108]. Legal and Compliance - CIMC Enric Holdings Limited's subsidiary, CIMC Enric Investment Holdings Shenzhen Co., Ltd., is involved in a lawsuit where SOEG PTE LTD claims RMB 153,456,000 for equity transfer payment and RMB 50,000 for legal fees[126]. - The Jiangsu Provincial High People's Court ruled against SOEG's claims, requiring SOEG to bear litigation costs of RMB 809,330[126]. - The company has complied with the Corporate Governance Code as per the listing rules for the six months ending June 30, 2020[128].

Financial Performance - Total revenue for the first half of 2019 reached RMB 6,584,418 thousand, representing a 16.5% increase compared to RMB 5,649,719 thousand in the same period of 2018[7]. - Gross profit increased by 14.6% to RMB 1,007,258 thousand, with a gross margin of 15.3%, slightly down from 15.6% in 2018[7]. - EBITDA for the first half of 2019 was RMB 646,212 thousand, up 13.5% from RMB 569,246 thousand in 2018[7]. - Net profit attributable to equity holders rose by 24.2% to RMB 382,879 thousand, compared to RMB 308,353 thousand in the previous year[7]. - Basic earnings per share increased to RMB 0.196, a 23.3% rise from RMB 0.159 in 2018[7]. - Total comprehensive income for the period was RMB 388,400,000, up from RMB 295,909,000, marking a 31.2% increase year-over-year[12]. - The company reported a profit of RMB 387,433,000 for the six months ended June 30, 2019, representing a 23.1% increase from RMB 314,647,000 in the same period of 2018[12]. - Reported segment profit for the first half of 2019 was RMB 625,085,000, an increase of 31.5% compared to RMB 475,128,000 in the same period of 2018[42]. Assets and Liabilities - Total assets as of June 30, 2019, were RMB 15,477,665 thousand, a decrease of 2.4% from RMB 15,853,354 thousand at the end of 2018[6]. - Total liabilities decreased to RMB 7,071,364,000 from RMB 8,089,634,000, a reduction of 12.5%[13]. - The company's net asset value rose to RMB 6,880,367,000, up from RMB 6,545,794,000, which is an increase of 5.1%[14]. - Current assets decreased to RMB 10,763,865,000 from RMB 11,761,233,000, indicating a decline of 8.5%[13]. - The total assets for the reporting segments amounted to RMB 15,261,705,000 as of June 30, 2019, slightly down from RMB 15,334,321,000 as of December 31, 2018[40]. - The total liabilities for the reporting segments were RMB 7,231,800,000 as of June 30, 2019, compared to RMB 8,252,362,000 as of December 31, 2018, showing a decrease of approximately 12%[40]. Cash Flow and Financing - Cash and cash equivalents decreased significantly by 36.7% to RMB 1,856,293 thousand from RMB 2,930,271 thousand[6]. - The net cash used in operating activities was RMB 296,124 thousand for the six months ended June 30, 2019, compared to RMB 267,473 thousand for the same period in 2018, indicating a decrease in cash flow from operations[19]. - The net cash used in financing activities was RMB 527,633 thousand for the six months ended June 30, 2019, compared to a net cash inflow of RMB 99,742 thousand for the same period in 2018, indicating a significant change in financing strategy[19]. - The company’s debt-to-equity ratio improved to 16.9%, down from 18.3% in the previous period[6]. - The bank loans increased significantly to RMB 962,458,000 from RMB 686,320,000, representing a rise of 40%[14]. Segment Performance - The clean energy segment generated revenue of RMB 3,120,071,000 for the six months ended June 30, 2019, compared to RMB 2,516,134,000 for the same period in 2018, reflecting a growth of about 24%[40]. - The chemical environment segment reported revenue of RMB 1,507,136,000 for the six months ended June 30, 2019, down from RMB 1,699,997,000 in the same period of 2018, indicating a decline of approximately 11%[40]. - The liquid food segment achieved revenue of RMB 1,410,177,000 for the six months ended June 30, 2019, compared to RMB 1,410,177,000 for the same period in 2018, remaining stable[40]. - The clean energy segment's adjusted operating profit was RMB 185,489,000 for the six months ended June 30, 2019, compared to RMB 113,395,000 for the same period in 2018, indicating a significant improvement[40]. Research and Development - Research and development expenses increased to RMB 125,015,000 in the first half of 2019, compared to RMB 84,959,000 in the same period of 2018, reflecting a focus on innovation[49]. - The clean energy division launched several successful R&D projects, including a 30,000 m³ LNG dual-metal full-container tank and a 20,000 m³ skid-mounted liquefaction device[96]. - The company is developing a non-contact liquid level sensor for smart tank management, which will enable intelligent monitoring of temperature, pressure, and liquid levels in containers[100]. Corporate Governance and Compliance - The company has complied with the Corporate Governance Code as per the Hong Kong Stock Exchange during the six months ending June 30, 2019[123]. - The audit committee consists of four independent non-executive directors, overseeing financial reporting and risk management[124]. - The company has established a standard code for securities trading by directors, ensuring compliance with regulations[122]. Future Outlook and Strategy - The company aims to expand its presence in clean energy and environmental sectors, aligning with its vision to be a world-leading enterprise in these industries[2]. - The company plans to continue expanding its operations in clean energy and chemical environments, focusing on the design and manufacturing of transportation and storage equipment[20]. - The company is actively exploring the environmental industry, which has significant market potential and high profit margins, particularly in the industrial solid waste recycling sector[99]. - The company aims to enhance its competitive edge in the tank container business by expanding the application of special tank containers and leveraging IoT technology for smart logistics[99].