股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 FF301 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 信義儲電控股有限公司 呈交日期: 2025年8月5日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 08328 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 2,000,000,000,000 | HKD | | 0.01 HKD | | 20,000,000,000 | | 增加 / 減少 (-) | | | | 0 | | HKD | | 0 | | 本月底結存 | | | 2,000,000,000,000 | HKD | | 0.01 HKD | | 20,000,000,000 | 本月 ...

Financial Performance - The company reported a revenue decline of 11.4%, from HKD 1,392.0 million in 2023 to HKD 1,233.9 million in 2024, primarily due to a decrease in average selling prices of main products caused by market supply and demand imbalance [9]. - The loss attributable to the company's owners for 2024 was HKD 197.1 million, a significant drop compared to a profit of HKD 83.1 million in 2023, mainly due to losses from the sale of the lithium battery production line and impairment provisions related to capitalized development costs of lithium battery products [9]. - The company's revenue decreased by 11.4% from HKD 1,392.0 million in 2023 to HKD 1,233.9 million in 2024, primarily due to a decline in average selling prices across major business products [25]. - Total revenue for the year ended December 31, 2024, decreased by 11.4% to HKD 1,233.9 million from HKD 1,392.0 million in 2023 [32]. - The energy storage business revenue dropped by 51.6%, from HKD 356.1 million in 2023 to HKD 172.4 million in 2024, indicating significant challenges in this segment [31]. - The EPC services segment saw a revenue increase of 7.0%, rising from HKD 572.0 million in 2023 to HKD 611.8 million in 2024, reflecting growth in this area [31]. - The photovoltaic film segment's revenue decreased by 6.1%, from HKD 363.5 million in 2023 to HKD 341.5 million in 2024, highlighting ongoing market pressures [31]. Operational Changes - The company decided to cease operations of its lithium battery production line, resulting in a one-time loss of HKD 95.6 million from the sale, which was completed in December 2024 [12]. - The company plans to cease the development and sales of mobile energy storage products by the end of 2024, fully impairing related assets due to market considerations [13]. - The company is transitioning to a lighter asset model for its energy storage business after selling its lithium battery production line in December 2024, which is expected to significantly reduce costs [20]. - The company is actively pursuing a dual development strategy for both commercial energy storage products and household "solar-storage-charging" products [11]. Product Development and Innovation - The company is focusing on the development and application of various battery packs, energy storage systems, and household "solar-storage-charging" products, emphasizing technological innovation and increased R&D investment [11]. - The company has developed a new residential energy storage battery pack with a capacity of 13.5 kWh, which is expected to start deliveries in 2024 [13]. - The company has begun shipping its commercial outdoor energy storage cabinets in 2024, expanding its range of commercial energy storage products [11]. - The company aims to enhance its energy storage system products and related offerings to meet customer demands and market changes [11]. - The company plans to enhance its photovoltaic film R&D, focusing on new generation products and improving quality and performance to strengthen market influence [21]. Market Strategy - The company believes that purchasing lithium batteries from other manufacturers is more commercially viable than self-production in the current competitive market [12]. - The company aims to enhance its competitiveness in the energy storage market by optimizing product integration and focusing on overseas market expansion [20]. - The company is actively expanding its photovoltaic EPC business overseas, particularly in South Africa and Indonesia, to tap into significant market potential [22]. - The company is expanding its photovoltaic EPC services into the commercial market in Canada, despite a temporary halt in national subsidy applications [15]. Governance and Compliance - The company has adopted the corporate governance code as per GEM listing rules for the entire year of 2024, emphasizing the importance of good corporate governance in management and internal control [72]. - The independent non-executive directors actively participate in board meetings and various committees, contributing to the company's governance and decision-making processes [75]. - The board consists of three executive directors, two non-executive directors, and three independent non-executive directors, ensuring a diverse range of business and financial expertise [74]. - The board is collectively responsible for the long-term success of the company, focusing on protecting shareholder interests and enhancing long-term value [73]. Financial Management - The company has established a sound risk management and internal control system to ensure operational effectiveness and compliance with applicable laws and regulations [93]. - The company has implemented a clear organizational structure with appropriate responsibilities and reporting mechanisms to minimize errors and misuse of authority [95]. - The company aims to maintain healthy order profits and cash flow while strictly controlling order sizes and assessing accounts receivable risks amid a challenging industry environment [21]. - The company has confirmed compliance with GEM listing rules regarding the appointment of independent non-executive directors, ensuring at least one has appropriate professional qualifications or financial management expertise [75]. Employee and Shareholder Relations - The company has a total of 445 employees as of December 31, 2024, with a gender distribution of 73% male and 27% female [90]. - The company provides ongoing professional development for all directors to ensure they remain knowledgeable and skilled in their roles [96]. - The company encourages management to meet with shareholders and potential investors to provide updates on business developments [102]. - The company has established multiple communication channels with shareholders, including an annual general meeting and a dedicated website for public access to information [102]. Environmental and Social Responsibility - The company has implemented various environmental measures to reduce greenhouse gas emissions and improve water recycling rates [108]. - The company has established an environmental, social, and governance report available on the stock exchange and its website [110]. Impairment and Losses - A loss of HKD 95.6 million was recognized from the sale of a battery production line, reflecting the decline in average selling prices of lithium battery products [41]. - Impairment losses of HKD 41.4 million on property, plant, and equipment were recognized due to market price declines in the photovoltaic film business [42]. - The company recognized impairment losses of HKD 2.0 million for property, plant, and equipment and HKD 25.5 million for intangible assets related to the mobile energy business due to minimal recoverable amounts [43]. - The impairment losses for the electric vehicle charging pile business amounted to HKD 3.1 million for property, plant, and equipment and HKD 14.9 million for intangible assets, reflecting a decline in expected sales and marketing performance [44].

Financial Performance - Revenue for the year ended December 31, 2024, was HKD 1,233,870, a decrease of 11.4% compared to HKD 1,391,960 in 2023[4] - The company reported a loss attributable to owners of HKD 197,069 for 2024, compared to a profit of HKD 83,142 in 2023[6] - Basic loss per share for the year was HKD 25.09, down from earnings of HKD 10.59 per share in the previous year[7] - Total comprehensive loss for the year amounted to HKD 267,005, compared to a total comprehensive income of HKD 68,958 in 2023[7] - The company reported a loss before tax of HKD 189,360,000 for the year ended December 31, 2024, compared to a profit of HKD 109,624,000 in 2023[28] - The company's loss before tax for 2024 was HKD 197,069,000, compared to a profit of HKD 83,142,000 in 2023, resulting in a basic loss per share of HKD (25.09) versus a profit of HKD 10.59 in the previous year[38] - The loss attributable to the company's owners for 2024 was HKD 197.1 million, mainly due to losses from the sale of battery production lines and impairment provisions related to intangible assets associated with lithium battery product development costs[55] Asset and Liability Changes - Non-current assets decreased to HKD 1,105,426 in 2024 from HKD 1,212,973 in 2023, primarily due to impairment losses[9] - Current assets also declined to HKD 908,349 from HKD 1,120,370, with cash and cash equivalents dropping to HKD 111,706 from HKD 206,549[9] - The company's net assets decreased to HKD 963,892 in 2024 from HKD 1,225,283 in 2023[9] - Total assets as of December 31, 2024, were HKD 2,013,330,000, down from HKD 2,332,891,000 in 2023[30] - Total liabilities as of December 31, 2024, were HKD 580,219,000, compared to HKD 573,656,000 in 2023[32] - The company's bank borrowings decreased to HKD 467.8 million as of December 31, 2024, from HKD 532.2 million the previous year, while unused bank financing increased to HKD 1,136.6 million[113] Revenue Breakdown - The group reported total external customer revenue of HKD 1,233,870,000 for the year ending December 31, 2024, with contributions from various segments: Energy Storage Business (HKD 172,387,000), EPC Services (HKD 611,817,000), Photovoltaic Film (HKD 341,527,000), Automotive Glass Repair and Replacement Services (HKD 57,413,000), and Others (HKD 50,726,000) [25] - The gross profit for the group was HKD 203,117,000, with the following segment contributions: Energy Storage Business (HKD 8,392,000), EPC Services (HKD 157,481,000), Photovoltaic Film (HKD 8,555,000), Automotive Glass Repair and Replacement Services (HKD 18,312,000), and Others (HKD 10,377,000) [25] - Revenue from China decreased to HKD 723,458,000 in 2024 from HKD 962,301,000 in 2023, representing a decline of approximately 25%[29] - The energy storage business revenue fell by 51.6% to HKD 172.4 million from HKD 356.1 million, attributed to a shift from self-produced lithium batteries to third-party sourced batteries[79] - EPC services revenue increased by 7.0% to HKD 611.8 million from HKD 572.0 million, supported by stable contributions from China and Canada[79] Impairment and Losses - The company incurred impairment losses on property, plant, and equipment amounting to HKD 49,498, and on intangible assets amounting to HKD 60,645 during the year[6] - The company reported a significant loss of HKD 99,883,000 from the sale or write-off of facilities and equipment in 2024[34] - A loss of HKD 95.6 million was recognized from the sale of a battery production line, with the sale price being RMB 26.2 million (approximately HKD 28.1 million)[87] - Impairment losses of HKD 41.4 million on property, plant, and equipment and HKD 4.4 million on intangible assets were recognized for the photovoltaic film business due to market price declines[90] - The mobile energy storage business was discontinued, resulting in impairment losses of HKD 2.0 million on property, plant, and equipment and HKD 25.5 million on intangible assets[91] Operational Changes and Strategies - The board has not provided specific guidance for future performance but indicated ongoing challenges in the market[6] - The company has transformed its main business from automotive glass and repair services in Hong Kong to a comprehensive solution provider focusing on energy storage, EPC services, and photovoltaic (PV) films[103] - The company has decided to sell its lithium battery production line, resulting in a one-time loss of HKD 95.6 million, to better allocate resources towards energy storage system integration[65] - The company is adjusting its energy storage system product development to assess the impact of using different lithium batteries following the cessation of lithium battery production[69] - The company is actively expanding its photovoltaic EPC business in overseas markets, particularly in South Africa and Indonesia, to capitalize on the growing demand for distributed solar power systems[109] Research and Development - Research and development expenses increased to HKD 49,874,000 in 2024 from HKD 32,039,000 in 2023, reflecting a growth of approximately 55.7%[38] - The company aims to enhance its photovoltaic film production capabilities and is investing in R&D for next-generation products, including 0BB component packaging materials and perovskite battery encapsulation films[107] Governance and Compliance - The group maintained compliance with the corporate governance code applicable to GEM listed companies throughout the year[128] - The auditor for the group is Hong Kong Lixin Dehao Certified Public Accountants Limited, which has verified the financial data for the year ending December 31, 2024, but did not provide any opinions or conclusions on the preliminary announcement[137]

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 646,517,000, an increase of 17.2% compared to HKD 551,422,000 for the same period in 2023[17]. - Gross profit for the same period was HKD 111,753,000, representing a gross margin of 17.3%, up from HKD 59,324,000 in 2023[17]. - Operating profit increased to HKD 33,227,000, compared to HKD 28,721,000 in the previous year, reflecting a growth of 15.5%[17]. - Net profit for the period was HKD 16,054,000, slightly down from HKD 16,908,000 in 2023, indicating a decrease of 5.0%[17]. - Total comprehensive income for the period was HKD (23,948,000), compared to HKD (16,592,000) in the previous year, showing a decline in overall performance[18]. - The company reported a basic earnings per share of HKD 1.56 for the period, compared to HKD 1.72 in the previous year[18]. - The profit attributable to the company's owners for the six months ended June 30, 2024, was HKD 12,250,000, a decrease of 9.4% from HKD 13,534,000 for the same period in 2023[48]. - The basic earnings per share for the six months ended June 30, 2024, was HKD 1.56, down from HKD 1.72 in the previous year, reflecting a decline of 9.3%[48]. - The diluted earnings per share for the six months ended June 30, 2024, was HKD 1.56, compared to HKD 1.71 for the same period in 2023, indicating a decrease of 8.8%[50]. - The company's operating profit before tax for the six months ended June 30, 2024, was HKD 24,686,000, slightly up from HKD 24,216,000 in 2023, showing a growth of 2.0%[34]. Assets and Liabilities - Non-current assets as of June 30, 2024, totaled HKD 1,286,634,000, an increase from HKD 1,212,973,000 at the end of 2023[19]. - Current assets decreased to HKD 891,223,000 from HKD 1,120,370,000, indicating a reduction of 20.4%[19]. - Current liabilities were HKD 811,099,000, down from HKD 907,376,000, reflecting a decrease of 10.6%[19]. - As of June 30, 2024, total equity decreased to HKD 1,204,069 thousand from HKD 1,225,283 thousand as of December 31, 2023, representing a decline of approximately 1.7%[20]. - The company reported a total non-current liability of HKD 162,689 thousand as of June 30, 2024, down from HKD 200,684 thousand as of December 31, 2023, indicating a reduction of approximately 18.9%[20]. - The company's total assets as of June 30, 2024, were HKD 2,177,857,000, compared to HKD 2,333,343,000 as of December 31, 2023, a decrease of 6.7%[37]. - The total liabilities as of June 30, 2024, were HKD 973,788,000, down from HKD 1,108,060,000 as of December 31, 2023, reflecting a reduction of 12.1%[37]. - The company's total trade payables were HKD 192,368,000 as of June 30, 2024, down from HKD 202,746,000 as of December 31, 2023, a decrease of approximately 5.5%[58]. - The company's contract liabilities totaled HKD 193,339,000 as of June 30, 2024, compared to HKD 205,421,000 as of December 31, 2023, indicating a decrease of approximately 5.4%[58]. Cash Flow and Investments - The net cash flow from operating activities for the six months ended June 30, 2024, was HKD 26,907 thousand, a significant improvement compared to a net cash outflow of HKD 153,524 thousand for the same period in 2023[24]. - Cash and cash equivalents at the end of the period were HKD 48,782 thousand, a decrease from HKD 111,786 thousand at the end of the previous year, reflecting a decline of about 56.4%[24]. - The company incurred a net cash outflow from investing activities of HKD 53,729 thousand for the six months ended June 30, 2024, compared to HKD 90,878 thousand in the same period of 2023, showing a reduction in cash used for investments[24]. - The company's financing activities resulted in a net cash outflow of HKD 128,402 thousand for the six months ended June 30, 2024, compared to a net inflow of HKD 196,276 thousand in the same period of 2023, highlighting a shift in financing strategy[24]. Revenue Segmentation - For the six months ending June 30, 2024, total revenue reached HKD 646,517,000, with external customer revenue contributions from various segments including HKD 65,926,000 from energy storage, HKD 323,963,000 from EPC services, and HKD 224,172,000 from photovoltaic films[32]. - The gross profit for the energy storage segment was HKD 5,728,000, while the EPC services segment achieved a gross profit of HKD 89,516,000, leading to a total gross profit of HKD 111,753,000 for the group[32]. - The company reported a significant increase in external customer revenue for the energy storage segment, which was HKD 158,932,000 for the six months ending June 30, 2023, compared to HKD 65,926,000 for the same period in 2024, indicating a decline[33]. - The total cost of revenue for the group was HKD 534,764,000, with the cost of revenue for the energy storage segment being HKD 60,198,000[32]. - The gross profit margin for the EPC services segment was notably high at 27.7%, while the photovoltaic films segment reported a gross loss of HKD 3,006,000[33]. - The energy storage business reported a revenue decline to HKD 65.9 million, down 58.5% from HKD 158.9 million in the previous year, primarily due to fewer project deliveries[83]. - The photovoltaic EPC service business experienced a 50.3% revenue growth in the first half of 2024 compared to the same period in 2023, with a gross margin of 27.6% due to declining prices of key materials[77]. - The photovoltaic film segment saw revenue rise to HKD 224.2 million, an 82.6% increase from HKD 122.8 million in the previous year[83]. Research and Development - The company has invested significantly in R&D, with a focus on developing various types of lithium battery products and energy storage systems to meet market demands[76]. - The company's research and development expenses for the six months ended June 30, 2024, were HKD 20,014,000, compared to HKD 17,018,000 in 2023, an increase of 17.7%[43]. - The company is actively developing a series of electric vehicle charging piles, with stable shipments and ongoing R&D efforts[76]. - The company has completed the R&D work for several mobile energy storage products, which are now undergoing product certification[76]. Market Strategy and Expansion - The company is focusing on expanding its market presence and enhancing product development strategies to drive future growth[14]. - The company plans to adopt new or revised Hong Kong Financial Reporting Standards that are effective from January 1, 2024, but does not expect any significant impact on its financial performance or disclosures[30]. - The company aims to enhance its photovoltaic film product offerings and has seen a significant increase in sales volume in the first half of 2024, alongside efforts to reduce production costs[78]. - The company established a joint venture in Indonesia to provide photovoltaic EPC services, expanding its overseas market presence with multiple potential projects under negotiation[77]. - The company plans to invest resources in R&D to improve product performance and reduce production costs, while expanding its market reach and customer service capabilities[80]. - The company aims to complete certification with the top fifteen photovoltaic component manufacturers in China and expand its production capacity in Malaysia[81]. Shareholder Information - As of June 30, 2024, the company has a total of 393,466,542 shares held by directors and executives, representing approximately 50.08% of the issued share capital[106]. - The company has a significant concentration of ownership, with the top shareholders controlling over 63.94% of the issued share capital[110]. - The company is subject to a shareholders' agreement that grants preemptive rights to existing shareholders in case of share sales[107]. - The overall shareholding distribution reflects a stable ownership base, which could be beneficial for long-term strategic planning[111]. - The company has a diverse ownership structure with multiple controlled corporations involved in shareholding[107]. Corporate Governance - The company confirmed compliance with the corporate governance code applicable to GEM listed companies during the first half of 2024[121]. - The audit committee, composed entirely of independent non-executive directors, reviewed the unaudited interim results for the first half of 2024[124].

[Financial Highlights](index=2&type=section&id=Financial%20Highlights) [Key Financial Data](index=2&type=section&id=Key%20Financial%20Data) The company's revenue grew by 17.2% to HKD 646,517 thousand, while profit attributable to owners and basic EPS declined by 9.5% and 9.3% respectively | Indicator | H1 2024 (HKD Thousand) | H1 2023 (HKD Thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue | 646,517 | 551,422 | +17.2% | | Profit attributable to owners of the Company | 12,250 | 13,534 | -9.5% | | Earnings per share - Basic | 1.56 HK cents | 1.72 HK cents | -9.3% | [Condensed Consolidated Financial Statements](index=3&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) In H1 2024, revenue grew to HKD 646,517 thousand and gross profit increased, but reduced other income led to lower profit and total comprehensive income for the period | Indicator | H1 2024 (HKD Thousand) | H1 2023 (HKD Thousand) | | :--- | :--- | :--- | | Revenue | 646,517 | 551,422 | | Cost of revenue | (534,764) | (492,098) | | Gross profit | 111,753 | 59,324 | | Other income | 10,628 | 42,872 | | Operating profit | 33,227 | 28,721 | | Profit for the period | 16,054 | 16,908 | | Total comprehensive income for the period | (23,948) | (16,592) | - Exchange differences on translation of financial statements of overseas operations resulted in negative other comprehensive income, **HKD (37,851) thousand** in H1 2024, similar to **HKD (37,914) thousand** in the prior period[3](index=3&type=chunk) [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, total assets slightly decreased, non-current assets slightly increased, and net current assets significantly declined due to reduced current assets and liabilities | Indicator | June 30, 2024 (HKD Thousand) | December 31, 2023 (HKD Thousand) | | :--- | :--- | :--- | | Non-current assets | 1,286,634 | 1,212,973 | | Current assets | 891,223 | 1,120,370 | | Current liabilities | 811,099 | 907,376 | | Net current assets | 80,124 | 212,994 | | Net assets | 1,204,069 | 1,225,283 | - Cash and cash equivalents significantly decreased from **HKD 206,549 thousand** to **HKD 48,782 thousand**[5](index=5&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) In H1 2024, profit attributable to owners was HKD 12,250 thousand, but negative total comprehensive income of HKD 26,757 thousand led to a slight decrease in total equity | Indicator | H1 2024 (HKD Thousand) | H1 2023 (HKD Thousand) | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company | 12,250 | 13,534 | | Total comprehensive income for the period attributable to owners of the Company | (26,757) | (20,474) | | Proceeds from employee share option scheme | 296 | 183 | | Share-based payment expense | 2,233 | 2,577 | - Exchange reserve decreased by **HKD 36,856 thousand** due to exchange differences on translation of financial statements of overseas operations[7](index=7&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) In H1 2024, operating cash flow turned positive, investing cash outflow decreased, but financing cash outflow significantly increased, leading to a larger net decrease in cash and cash equivalents | Indicator | H1 2024 (HKD Thousand) | H1 2023 (HKD Thousand) | | :--- | :--- | :--- | | Net cash generated from/(used in) operating activities | 26,907 | (153,524) | | Net cash used in investing activities | (53,729) | (90,878) | | Net cash (used in)/generated from financing activities | (128,402) | 196,276 | | Net decrease in cash and cash equivalents | (155,224) | (48,126) | | Cash and cash equivalents at end of period | 48,782 | 111,786 | - Repayment of bank borrowings significantly increased to **HKD 337,150 thousand**, which was the primary reason for the increase in cash outflow from financing activities[8](index=8&type=chunk) [Notes to the Condensed Consolidated Interim Financial Information](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) [General Information](index=9&type=section&id=General%20Information) The Group operates in automotive glass repair, energy storage, PV encapsulants, and solar EPC services, with financial data presented in HKD thousand and approved on August 2, 2024 - The Group's business is diversified, covering automotive glass repair, energy storage products, photovoltaic encapsulant manufacturing and sales, and solar EPC services[10](index=10&type=chunk) [Basis of Preparation and Accounting Policies](index=9&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) This interim financial information adheres to GEM Listing Rules and HKAS 34, maintaining consistent accounting policies, with new standards having no significant impact on performance or financial position - Newly adopted HKFRSs (e.g., HKAS 1 (Amendments), HKFRS 16 (Amendments)) have **no significant impact** on the Group's performance and financial position[12](index=12&type=chunk) [Adoption of New or Revised HKFRSs - Effective 1 January 2024](index=9&type=section&id=Adoption%20of%20New%20or%20Revised%20HKFRSs%20-%20Effective%201%20January%202024) The Group adopted new or revised HKFRSs on January 1, 2024, covering liability classification, non-current liability covenants, sale and leaseback lease liabilities, and supplier finance disclosures - Adopted standards include HKAS 1 (Amendments) on classification of liabilities as current or non-current, and HKFRS 16 (Amendments) on lease liabilities in a sale and leaseback[12](index=12&type=chunk) [New or Revised HKFRSs Issued But Not Yet Effective](index=10&type=section&id=New%20or%20Revised%20HKFRSs%20Issued%20But%20Not%20Yet%20Effective) Future HKFRSs, including HKAS 21 (Amendments), HKFRS 18, and HKFRS 19, are not expected to significantly impact the Group's financial performance or position - The Group has begun assessing the impact of future effective standards (e.g., HKFRS 18 Presentation and Disclosure in Financial Statements) and expects **no significant impact**[13](index=13&type=chunk)[14](index=14&type=chunk) [Revenue and Segment Information](index=11&type=section&id=Revenue%20and%20Segment%20Information) The Group's five operating segments are managed for performance, with H1 2024 total revenue up 17.2% driven by EPC and PV encapsulants, despite a decline in energy storage revenue - The Group's operating segments include energy storage business, EPC services, photovoltaic encapsulants, automotive glass repair and replacement services, and other segments[16](index=16&type=chunk) [Segment Results](index=11&type=section&id=Segment%20Results) In H1 2024, EPC and PV encapsulant revenue and gross profit grew significantly, energy storage revenue declined but gross profit rose, and automotive glass services saw growth in both | Segment | H1 2024 Revenue (HKD Thousand) | H1 2023 Revenue (HKD Thousand) | H1 2024 Gross Profit (HKD Thousand) | H1 2023 Gross Profit (HKD Thousand) | | :--- | :--- | :--- | :--- | :--- | | Energy Storage Business | 65,926 | 158,932 | 5,728 | 4,466 | | EPC Services | 323,963 | 215,494 | 89,516 | 43,705 | | Photovoltaic Encapsulants | 224,172 | 122,824 | 8,391 | (3,006) | | Automotive Glass Repair and Replacement Services | 25,976 | 23,675 | 7,340 | 6,496 | | Others | 6,480 | 30,497 | 778 | 7,663 | | **Total** | **646,517** | **551,422** | **111,753** | **59,324** | - In H1 2024, non-current asset additions for EPC services and photovoltaic encapsulants businesses were **HKD 7,156 thousand** and **HKD 12,553 thousand**, respectively[16](index=16&type=chunk) - In H1 2023, Customer A contributed **HKD 116,157 thousand** to the total revenue of the energy storage business, accounting for **over 10%** of total revenue[19](index=19&type=chunk) [Classification of Revenue from Contracts with Customers](index=13&type=section&id=Classification%20of%20Revenue%20from%20Contracts%20with%20Customers) Group revenue is geographically segmented, with H1 2024 China market revenue at HKD 396,828 thousand, Canada significantly growing to HKD 217,671 thousand, and other regions stable | Region | H1 2024 (HKD Thousand) | H1 2023 (HKD Thousand) | | :--- | :--- | :--- | | China | 396,828 | 375,121 | | Canada | 217,671 | 150,829 | | Hong Kong | 25,993 | 23,675 | | Others | 6,025 | 1,797 | | **Total** | **646,517** | **551,422** | [Segment Assets and Liabilities](index=14&type=section&id=Segment%20Assets%20and%20Liabilities) As of June 30, 2024, total assets were HKD 2,177,683 thousand and total liabilities were HKD (567,881) thousand, with non-current assets mainly in China | Indicator | June 30, 2024 (HKD Thousand) | December 31, 2023 (HKD Thousand) | | :--- | :--- | :--- | | Reportable segment assets | 2,177,683 | 2,332,891 | | Reportable segment liabilities | (567,881) | (573,656) | | Region | June 30, 2024 Non-current Assets (HKD Thousand) | December 31, 2023 Non-current Assets (HKD Thousand) | | :--- | :--- | :--- | | China | 774,386 | 781,117 | | Canada | 7,555 | 5,070 | | Hong Kong | 22,004 | 21,826 | | Malaysia | 18,962 | 17,618 | | **Total** | **822,907** | **825,631** | [Other Income and Other Net Gains](index=15&type=section&id=Other%20Income%20and%20Other%20Net%20Gains) H1 2024 other income significantly decreased to HKD 10,628 thousand due to reduced government grants, while other net gains were HKD 929 thousand from scrap sales and exchange gains | Indicator | H1 2024 (HKD Thousand) | H1 2023 (HKD Thousand) | | :--- | :--- | :--- | | **Other Income** | | | | Government grants | 1,756 | 40,727 | | Others | 8,872 | 2,145 | | **Total** | **10,628** | **42,872** | | **Other Net Gains** | | | | Net gain on disposal of obsolete facilities, scrap or property, plant and equipment | 411 | 2,517 | | Net exchange gain/(loss) | 518 | (456) | | **Total** | **929** | **2,061** | - H1 2024 government grants primarily included operating cost and tax subsidies from the Chinese government, while H1 2023 mainly comprised **HKD 40,392 thousand** in operating cost subsidies[25](index=25&type=chunk) [Finance Income and Finance Costs](index=16&type=section&id=Finance%20Income%20and%20Finance%20Costs) H1 2024 finance income was HKD 675 thousand, and finance costs were HKD 9,216 thousand, with increased costs after capitalization due to a significant reduction in capitalized amounts | Indicator | H1 2024 (HKD Thousand) | H1 2023 (HKD Thousand) | | :--- | :--- | :--- | | Interest income from bank deposits | 675 | 845 | | Interest on bank borrowings | 9,295 | 12,440 | | Interest on lease liabilities | 564 | 242 | | Interest on discounted bills | 1,771 | 1,037 | | Less: Amount capitalised | (2,414) | (8,369) | | **Finance Costs** | **9,216** | **5,350** | - The weighted average interest rate for capitalized borrowing costs in H1 2024 was **2.02%**, lower than **2.67%** in H1 2023[26](index=26&type=chunk) [Profit Before Income Tax](index=17&type=section&id=Profit%20Before%20Income%20Tax) Group profit before income tax is derived after deducting costs of inventories, depreciation, amortization, employee benefits, short-term leases, and R&D expenses | Indicator | H1 2024 (HKD Thousand) | H1 2023 (HKD Thousand) | | :--- | :--- | :--- | | Cost of inventories | 346,457 | 383,331 | | Depreciation expense | 28,419 | 18,960 | | Amortisation expense | 2,021 | 1,109 | | Employee benefit expenses | 52,802 | 47,662 | | Research and development expenses | 20,014 | 17,018 | [Income Tax Expense](index=17&type=section&id=Income%20Tax%20Expense) H1 2024 income tax expense rose to HKD 8,632 thousand, with the effective tax rate increasing to 35.0% due to higher profit before tax and more high-tech enterprises in China | Indicator | H1 2024 (HKD Thousand) | H1 2023 (HKD Thousand) | | :--- | :--- | :--- | | Hong Kong profits tax | 234 | 121 | | China corporate income tax | 14,478 | 2,074 | | Canada corporate income tax | 1,664 | 621 | | Deferred tax (expense)/credit | (7,744) | 4,492 | | **Total** | **8,632** | **7,308** | - Four Chinese subsidiaries are recognized as high-tech enterprises, enjoying a preferential corporate income tax rate of **15%**[29](index=29&type=chunk) - A Hong Kong subsidiary completed tax audits for the 2017/18 to 2020/21 assessment years, with additional tax and interest totaling **HKD 302,000**[30](index=30&type=chunk) [Earnings Per Share](index=19&type=section&id=Earnings%20Per%20Share) H1 2024 basic and diluted earnings per share both decreased to **1.56 HK cents** [Basic Earnings Per Share](index=19&type=section&id=Basic%20Earnings%20Per%20Share) Basic earnings per share is calculated using profit attributable to owners and weighted average ordinary shares, resulting in **1.56 HK cents** for H1 2024 | Indicator | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Profit attributable to owners of the Company (HKD Thousand) | 12,250 | 13,534 | | Weighted average number of ordinary shares outstanding (Thousand shares) | 785,437 | 785,161 | | **Basic Earnings Per Share (HK cents)** | **1.56** | **1.72** | [Diluted Earnings Per Share](index=19&type=section&id=Diluted%20Earnings%20Per%20Share) H1 2024 diluted earnings per share was **1.56 HK cents**, as unexercised share options were anti-dilutive | Indicator | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Profit attributable to owners of the Company for diluted EPS (HKD Thousand) | 12,250 | 13,534 | | Weighted average number of ordinary shares outstanding (Thousand shares) | 785,437 | 785,161 | | Adjustment for share options (Thousand shares) | — | 4,494 | | **Diluted Earnings Per Share (HK cents)** | **1.56** | **1.71** | - In H1 2024, unexercised share options were anti-dilutive and thus had **no impact** on diluted earnings per share calculation[33](index=33&type=chunk) [Dividends](index=20&type=section&id=Dividends) No interim dividends were declared for the six months ended June 30, 2024 - No interim dividends were declared in H1 2024, consistent with the prior period[35](index=35&type=chunk) [Capital Expenditure](index=20&type=section&id=Capital%20Expenditure) H1 2024 capital expenditure focused on property, plant and equipment and intangible asset additions, with end-of-period carrying values of HKD 716,927 thousand and HKD 102,765 thousand | Indicator | Property, Plant and Equipment (HKD Thousand) | Intangible Assets (HKD Thousand) | | :--- | :--- | :--- | | Carrying amount at January 1, 2024 | 735,904 | 89,200 | | Additions | 27,084 | 18,089 | | Depreciation/Amortisation | (28,419) | (2,021) | | Carrying amount at June 30, 2024 | 716,927 | 102,765 | [Contract Assets, Trade and Other Receivables and Prepayments](index=21&type=section&id=Contract%20Assets%2C%20Trade%20and%20Other%20Receivables%20and%20Prepayments) As of June 30, 2024, finance lease receivables, trade receivables, and contract assets increased, while bills receivable significantly decreased | Indicator | June 30, 2024 (HKD Thousand) | December 31, 2023 (HKD Thousand) | | :--- | :--- | :--- | | Finance lease receivables | 446,031 | 377,140 | | Trade receivables | 381,115 | 334,567 | | Contract assets | 204,140 | 203,881 | | Bills receivable measured at fair value through other comprehensive income | 25,175 | 70,078 | | Prepayments | 36,013 | 28,239 | | **Current portion** | **682,316** | **665,326** | [Trade Receivables](index=22&type=section&id=Trade%20Receivables) The Group's credit terms are 30-90 days; as of June 30, 2024, total trade receivables were HKD 381,115 thousand, with HKD 257,141 thousand aged 0-90 days | Ageing | June 30, 2024 (HKD Thousand) | December 31, 2023 (HKD Thousand) | | :--- | :--- | :--- | | 0 to 90 days | 257,141 | 204,754 | | 91 to 180 days | 35,138 | 58,774 | | 181 to 365 days | 48,523 | 63,396 | | Over 365 days | 40,313 | 7,643 | | **Total** | **381,115** | **334,567** | [Bills Receivable](index=22&type=section&id=Bills%20Receivable) As of June 30, 2024, bills receivable are due within 6 months - Bills receivable have a maturity period of **within 6 months**[38](index=38&type=chunk) [Transferred Financial Assets Not Fully Derecognised](index=22&type=section&id=Transferred%20Financial%20Assets%20Not%20Fully%20Derecognised) Unmatured bills receivable endorsed to suppliers and discounted with banks are not fully derecognized due to retained risks and rewards, with their carrying amounts still recognized - The carrying amounts of unmatured bills receivable endorsed and discounted by the Group were **HKD 18,551 thousand** and **HKD 2,377 thousand**, respectively, and were not derecognized due to the retention of major risks and rewards[39](index=39&type=chunk) [Transferred Financial Assets Fully Derecognised](index=23&type=section&id=Transferred%20Financial%20Assets%20Fully%20Derecognised) The Group derecognized endorsed bills of HKD 26,369 thousand and discounted bills of HKD 198,591 thousand, transferring most risks and rewards, but retaining recourse risk in case of bank default - The Group derecognized endorsed bills with a total carrying amount of **HKD 26,369 thousand** and discounted bills of **HKD 198,591 thousand**, but retains continuing involvement recourse risk[40](index=40&type=chunk) [Contract Liabilities, Trade and Other Payables](index=24&type=section&id=Contract%20Liabilities%2C%20Trade%20and%20Other%20Payables) As of June 30, 2024, the Group's trade payables, bills payable, contract liabilities, and accrued salaries and bonuses all decreased, totaling HKD 507,691 thousand | Indicator | June 30, 2024 (HKD Thousand) | December 31, 2023 (HKD Thousand) | | :--- | :--- | :--- | | Trade payables | 193,339 | 205,421 | | Bills payable | 157,574 | 122,586 | | Contract liabilities | 19,877 | 21,940 | | Accrued salaries and bonuses | 14,812 | 28,478 | | Other payables for acquisition of property, plant and equipment | 60,820 | 74,080 | | **Total** | **507,691** | **516,588** | - Of the trade payables, **HKD 86,972 thousand** were due within 30 days[41](index=41&type=chunk) [Bank Borrowings](index=25&type=section&id=Bank%20Borrowings) As of June 30, 2024, total bank borrowings were HKD 404,708 thousand (HKD 291,938 thousand current), with unutilized bank facilities of HKD 1,088,646 thousand | Indicator | June 30, 2024 (HKD Thousand) | December 31, 2023 (HKD Thousand) | | :--- | :--- | :--- | | On demand or within one year | 291,938 | 376,991 | | In the second year | 78,632 | 85,115 | | In the third to fifth years | 34,138 | 70,058 | | **Total** | **404,708** | **532,164** | - The Group had **HKD 1,088,646 thousand** in unutilized bank facilities, higher than **HKD 974,875 thousand** as of December 31, 2023[43](index=43&type=chunk) - Bank borrowings are secured by corporate guarantees provided by the Company and a subsidiary[43](index=43&type=chunk) [Share Capital](index=25&type=section&id=Share%20Capital) As of June 30, 2024, issued and fully paid share capital was HKD 7,855 thousand, with 217,648 ordinary shares issued from share option exercises | Indicator | Number of Shares | HKD Thousand | | :--- | :--- | :--- | | Issued and fully paid at December 31, 2023 and January 1, 2024 | 785,315,981.38 | 7,853 | | Ordinary shares issued upon exercise of share options | 217,648 | 2 | | **June 30, 2024** | **785,533,629.38** | **7,855** | [Share Options](index=26&type=section&id=Share%20Options) In H1 2024, 2,200,000 share options were granted at HKD 1.78 per share, valid until March 31, 2028, with 17,760,873 unexercised as of June 30, 2024 | Indicator | H1 2024 Share Options (Units) | H1 2023 Share Options (Units) | | :--- | :--- | :--- | | At January 1 | 16,079,071 | 14,562,823 | | Granted | 2,200,000 | 2,200,000 | | Exercised | (217,648) | (148,854) | | Forfeited | (300,550) | (261,736) | | **At June 30** | **17,760,873** | **16,352,233** | - **2,200,000 share options** granted on March 4, 2024, had an exercise price of **HKD 1.78** per share and a weighted average fair value of **HKD 0.95**[46](index=46&type=chunk)[47](index=47&type=chunk) [Fair Value Measurement](index=27&type=section&id=Fair%20Value%20Measurement) The Group measures financial assets and liabilities across Level 1, 2, and 3 fair value hierarchies, with Level 2 for bills receivable at fair value through OCI and Level 3 for unlisted equity investments | Indicator | Level 1 (HKD Thousand) | Level 2 (HKD Thousand) | Level 3 (HKD Thousand) | | :--- | :--- | :--- | :--- | | Bills receivable at fair value through other comprehensive income at June 30, 2024 | — | 25,175 | — | | Financial assets at fair value through other comprehensive income at June 30, 2024 | — | — | 26,784 | - Level 3 fair value measurement for unlisted equity investments uses the discounted cash flow method, with key inputs including power generation, operating expenses, and discount rate[50](index=50&type=chunk)[51](index=51&type=chunk) - In H1 2024, fair value changes of Level 3 unlisted equity investments were recognized as **HKD (2,532) thousand** in other comprehensive income[52](index=52&type=chunk) [Related Party Transactions](index=30&type=section&id=Related%20Party%20Transactions) The Group conducted various related party transactions, including purchases, sales, management fees, and lease payments, with Xinyi Glass, Xinyi Solar, non-controlling interest entities, and director-controlled entities | Related Party | Transaction Type | H1 2024 (HKD Thousand) | H1 2023 (HKD Thousand) | | :--- | :--- | :--- | :--- | | Subsidiaries of Xinyi Glass Holdings Limited | Purchase of automotive glass | 3,670 | 2,993 | | | Sale of energy storage products | 5,992 | 2,014 | | | Management fee income | 921 | 4,531 | | Subsidiaries of Xinyi Solar Holdings Limited | Sale of energy storage products | 8,534 | 6,313 | | | Sale of photovoltaic encapsulants | 20 | 20 | | Key management personnel remuneration | | 6,091 | 5,068 | [Capital Commitments](index=31&type=section&id=Capital%20Commitments) As of June 30, 2024, contracted but unspent capital expenditure was HKD 5,460 thousand, mainly for production plant construction and property, plant and equipment purchases | Indicator | June 30, 2024 (HKD Thousand) | December 31, 2023 (HKD Thousand) | | :--- | :--- | :--- | | Capital expenditure contracted but not provided for | 5,460 | 14,640 | [Management Discussion and Analysis](index=32&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Outlook](index=32&type=section&id=Business%20Review%20and%20Outlook) The Group transformed into a "3E" new energy solution provider, focusing on energy storage, EPC, and PV encapsulants, with future efforts on R&D, market expansion, and cost optimization - The Group has diversified into "3E" new energy businesses, primarily focusing on energy storage, EPC services, and EVA encapsulants[59](index=59&type=chunk) [Storage Business](index=32&type=section&id=Storage%20Business) The Group focuses on lithium battery energy storage and "PV-storage-charging" products; H1 2024 saw new product deliveries and R&D completion, with energy storage gross profit margin increasing despite fewer projects - The Group's commercial and industrial outdoor energy storage cabinets have begun shipping, further expanding product offerings[56](index=56&type=chunk) - The new **13.5 kWh** household energy storage battery pack has been delivered, establishing strategic cooperation with inverter manufacturers[56](index=56&type=chunk) - Energy storage business revenue decreased, but gross profit margin increased by undertaking fewer low-margin projects[57](index=57&type=chunk) [Photovoltaic Power Station Engineering, Procurement and Construction ("EPC") Services Business](index=33&type=section&id=Photovoltaic%20Power%20Station%20Engineering%2C%20Procurement%20and%20Construction%20%28%22EPC%22%29%20Services%20Business) The Group's PV EPC services in China and Canada saw H1 2024 revenue grow 50.3% and gross profit margin rise to 27.6% due to lower module prices, with overseas expansion via an Indonesian joint venture - Photovoltaic EPC services business revenue increased by **50.3%** year-on-year, with a gross profit margin of **27.6%**[57](index=57&type=chunk) - The Group established a joint venture in Indonesia to expand its overseas photovoltaic EPC services business[57](index=57&type=chunk) [Photovoltaic Film Business](index=34&type=section&id=Photovoltaic%20Film%20Business) The Group produces EVA, POE, and EPE encapsulants in China and Malaysia; H1 2024 saw significant sales growth and gross profit achieved through customer certification, product integration, and efficiency measures - The Group's photovoltaic encapsulant products include EVA, POE, and EPE films, with production lines in Wuhu, China, and Malacca, Malaysia, boasting a total capacity of **50 GW**[58](index=58&type=chunk) - In H1 2024, photovoltaic encapsulant sales increased, unit costs decreased, and the business achieved gross profit[58](index=58&type=chunk) [Business Outlook](index=34&type=section&id=Business%20Outlook) The Group expects significant energy storage growth, focusing on R&D, market expansion, and PV-storage integration; PV encapsulants will target top manufacturers and overseas markets, with new product R&D and global PV-storage EPC expansion - The Group will focus on expanding overseas energy storage markets, strengthening product R&D and certification, and exploring the integration of energy storage and photovoltaics to achieve "PV-storage-charging" equipment integration[60](index=60&type=chunk) - The photovoltaic encapsulant business aims to complete certification with the **top fifteen** leading module manufacturers in China, and invest in Southeast Asian market certification and increased production[60](index=60&type=chunk) - The Group will develop photovoltaic and energy storage EPC (PV-storage EPC) services and plans to establish business hubs in overseas markets such as Indonesia, South Africa, the Philippines, and Australia[61](index=61&type=chunk) [Financial Review](index=37&type=section&id=Financial%20Review) H1 2024 revenue grew 17.2% driven by EPC and PV encapsulants; gross profit increased, but reduced other income, higher administrative and tax expenses led to a slight decrease in profit attributable to owners [Revenue](index=37&type=section&id=Revenue) H1 2024 total revenue was HKD 646.5 million, up 17.2%, driven by significant growth in EPC and PV encapsulants, despite a decrease in energy storage revenue | Business Segment | H1 2024 (HKD Million) | H1 2023 (HKD Million) | Increase/(Decrease) (%) | | :--- | :--- | :--- | :--- | | Energy Storage Business | 65.9 | 158.9 | (58.5) | | EPC Services | 324.0 | 215.5 | 50.3 | | Photovoltaic Encapsulants | 224.2 | 122.8 | 82.6 | | Automotive Glass Repair and Replacement Services | 26.0 | 23.7 | 9.7 | | Others | 6.4 | 30.5 | (79.0) | | **Total Revenue** | **646.5** | **551.4** | **17.2** | - The increase in EPC services revenue was primarily due to the expansion of Canadian EPC services and increased installation volume of Chinese EPC services[63](index=63&type=chunk) - The increase in photovoltaic encapsulant revenue was mainly due to an increase in the number of customers who completed certification and product integration[63](index=63&type=chunk) - The decrease in energy storage business revenue was primarily due to fewer projects delivered in H1 2024 and fewer low-margin commercial and industrial energy storage projects undertaken[63](index=63&type=chunk) [Cost of Revenue and Gross Profit](index=38&type=section&id=Cost%20of%20Revenue%20and%20Gross%20Profit) H1 2024 gross profit significantly increased by HKD 52.5 million to HKD 111.8 million, with gross profit margin rising from 10.8% to 17.3%, driven by energy storage and EPC services - Energy storage business gross profit increased from **HKD 4.5 million** to **HKD 5.7 million**, mainly due to the sale of higher-margin energy storage products[64](index=64&type=chunk) - EPC services gross profit increased from **HKD 43.7 million** to **HKD 89.5 million**, primarily due to an increase in the number of projects with higher revenue and gross profit margins[64](index=64&type=chunk) - Photovoltaic encapsulant business shifted from a gross loss of **HKD 3.0 million** to a gross profit of **HKD 8.4 million**, mainly due to increased sales volume and implementation of cost-saving measures[64](index=64&type=chunk) [Other Income](index=39&type=section&id=Other%20Income) H1 2024 other income decreased, mainly due to a lack of government grants for photovoltaic encapsulant production and sales - H1 2024 other income primarily included tax subsidies, additional input VAT deductions, and electricity sales revenue, while H1 2023 mainly consisted of government grants from the Chinese government[65](index=65&type=chunk) [Other Net Gains](index=39&type=section&id=Other%20Net%20Gains) H1 2024 other net gains primarily comprised gains from production scrap sales and net exchange gains - Other net gains include gains from the sale of production scrap and net exchange gains[66](index=66&type=chunk) [Expenses](index=39&type=section&id=Expenses) Sales and marketing costs were stable, but administrative expenses increased by HKD 13.9 million to HKD 74.4 million, driven by higher employee benefits, R&D, and depreciation - The increase in administrative expenses was mainly due to an increase in the average number of employees, higher share-based compensation for share options, increased R&D expenses, and higher depreciation charges for property, plant and equipment[67](index=67&type=chunk) [Finance Costs](index=39&type=section&id=Finance%20Costs) Finance costs after capitalization increased by HKD 3.8 million to HKD 9.2 million, mainly due to a reduction in eligible capitalized amounts - The increase in finance costs was mainly due to a decrease in the amount eligible for capitalization, with capitalized interest expenses in H1 2024 being **HKD 2.4 million**[68](index=68&type=chunk) [Income Tax Expense](index=40&type=section&id=Income%20Tax%20Expense) H1 2024 income tax expense rose to HKD 8.6 million, with the effective tax rate increasing to 35.0% due to higher profit before income tax - The effective tax rate in H1 2024 was **35.0%**, higher than **30.2%** in H1 2023[69](index=69&type=chunk) [Profit Attributable to Owners of the Company](index=40&type=section&id=Profit%20Attributable%20to%20Owners%20of%20the%20Company) H1 2024 profit attributable to owners of the Company slightly decreased to HKD 12.3 million, influenced by operating performance - Profit attributable to owners of the Company slightly decreased to **HKD 12.3 million**, mainly due to factors such as reduced other income and increased administrative expenses[70](index=70&type=chunk) [Financial Resources and Liquidity](index=40&type=section&id=Financial%20Resources%20and%20Liquidity) As of June 30, 2024, net current assets were HKD 80.1 million, cash and cash equivalents were HKD 48.8 million, and the gearing ratio was 29.6% | Indicator | June 30, 2024 (HKD Million) | December 31, 2023 (HKD Million) | | :--- | :--- | :--- | | Net current assets | 80.1 | 213.0 | | Cash and cash equivalents | 48.8 | 206.5 | | Bank borrowings | 404.7 | 532.2 | | Unutilized bank facilities | 1,088.6 | 974.9 | | Gearing ratio | 29.6% | 26.6% | - The increase in gearing ratio was primarily due to a decrease in cash and cash equivalents[71](index=71&type=chunk) [Capital Structure](index=40&type=section&id=Capital%20Structure) The company's capital structure remained stable in H1 2024, with equity consisting solely of ordinary shares - The Group's capital structure is stable, with equity consisting solely of ordinary shares[72](index=72&type=chunk) [Capital Expenditure and Commitments](index=40&type=section&id=Capital%20Expenditure%20and%20Commitments) H1 2024 capital expenditure was HKD 27.3 million for new energy storage and EPC equipment, with HKD 5.5 million in contracted but unprovided commitments for PV encapsulant facilities | Indicator | H1 2024 (HKD Million) | H1 2023 (HKD Million) | | :--- | :--- | :--- | | Capital expenditure | 27.3 | 78.8 | - Contracted but unprovided capital commitments amounted to **HKD 5.5 million**, primarily for the construction of photovoltaic encapsulant production facilities and equipment procurement in China[73](index=73&type=chunk) [Asset Pledges](index=41&type=section&id=Asset%20Pledges) As of June 30, 2024, the Group had no assets pledged as collateral for bank financing - The Group has **no assets pledged** as collateral for bank financing[74](index=74&type=chunk) [Employees and Remuneration Policy](index=41&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2024, the Group had 521 full-time employees globally, offering training, competitive remuneration, discretionary bonuses, and retirement schemes | Region | Number of Employees at June 30, 2024 | Number of Employees at December 31, 2023 | | :--- | :--- | :--- | | China | 366 | 438 | | Hong Kong | 58 | 57 | | Malaysia and Canada | 97 | 102 | | **Total** | **521** | **597** | - The Group participates in relevant defined contribution retirement schemes and mandatory provident fund schemes for employees in China, Hong Kong, and Canada, respectively[75](index=75&type=chunk) [Treasury Policy and Foreign Currency Exchange Rate Fluctuation Risk](index=41&type=section&id=Treasury%20Policy%20and%20Foreign%20Currency%20Exchange%20Rate%20Fluctuation%20Risk) The Group transacts in HKD, RMB, and CAD; H1 2024 saw a HKD 36.9 million non-cash exchange loss due to RMB depreciation, increasing the consolidated exchange reserve debit balance, with potential future hedging - In H1 2024, a non-cash exchange loss of **HKD 36.9 million** was recorded due to the depreciation of RMB against HKD[76](index=76&type=chunk) - The Group's consolidated exchange reserve recorded a debit balance of **HKD 112.7 million** as of June 30, 2024[76](index=76&type=chunk) [Use of Proceeds from Rights Issue](index=42&type=section&id=Use%20of%20Proceeds%20from%20Rights%20Issue) The HKD 393.2 million net proceeds from the September 2022 rights issue were fully used by June 30, 2024, for additional working capital in the PV encapsulant business | Proposed Use | Net Proceeds (HKD Million) | Unutilized Balance as of December 31, 2023 (HKD Million) | Amount Utilized as of June 30, 2024 (HKD Million) | Unutilized Balance as of June 30, 2024 (HKD Million) | | :--- | :--- | :--- | :--- | :--- | | Additional working capital for developing photovoltaic encapsulant business | 393.2 | 59.8 | 59.8 | — | [Significant Investments, Acquisitions and Disposals of Subsidiaries, and Plans for Future Significant Investments or Capital Assets](index=42&type=section&id=Significant%20Investments%2C%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20and%20Plans%20for%20Future%20Significant%20Investments%20or%20Capital%20Assets) As of June 30, 2024, the Group had no significant investments exceeding 5% of total assets, no major acquisitions or disposals, and no plans for future significant investments - The Group held **no significant investments exceeding 5%** of total assets, nor were there any significant acquisitions or disposals[78](index=78&type=chunk) [Contingent Liabilities](index=42&type=section&id=Contingent%20Liabilities) As of June 30, 2024, the Group had no significant contingent liabilities - The Group had **no significant contingent liabilities**[79](index=79&type=chunk) [Events After the Reporting Period](index=42&type=section&id=Events%20After%20the%20Reporting%20Period) As of this announcement date, no significant events occurred after June 30, 2024 - **No significant events** occurred after the reporting period[80](index=80&type=chunk) [Other Information](index=43&type=section&id=Other%20Information) [Share Option Scheme](index=43&type=section&id=Share%20Option%20Scheme) Under the 2017 share option scheme, 2,200,000 options were granted in March 2024 to executive directors and employees, vesting over three years - **2,200,000 share options** were granted in March 2024, vesting over three years, and valid until March 31, 2028[81](index=81&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=43&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) In H1 2024, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities - In H1 2024, the company and its subsidiaries did not engage in the purchase, sale, or redemption of listed securities[82](index=82&type=chunk) [No Competing Business](index=43&type=section&id=No%20Competing%20Business) Directors, controlling shareholders, and their associates have no competing business interests or conflicts with the Group - Directors or controlling shareholders and their associates have **no competing business** or conflicts of interest with the Group's business[83](index=83&type=chunk) [Corporate Governance](index=43&type=section&id=Corporate%20Governance) The Directors confirm the company's compliance with the GEM Listing Rules' Corporate Governance Code throughout H1 2024 - The company complied with the GEM Listing Rules' Corporate Governance Code in H1 2024[84](index=84&type=chunk) [Code of Conduct for Directors' Securities Transactions](index=43&type=section&id=Code%20of%20Conduct%20for%20Directors'%20Securities%20Transactions) The company adopted a code of conduct for directors' securities transactions, with all directors confirming compliance in H1 2024 - All directors confirmed compliance with the company's adopted code of conduct for directors' securities transactions[85](index=85&type=chunk) [Interim Dividend](index=43&type=section&id=Interim%20Dividend) The Directors do not recommend any interim dividend payment for H1 2024 - **No interim dividend** will be distributed for H1 2024[86](index=86&type=chunk) [Audit Committee](index=44&type=section&id=Audit%20Committee) The Audit Committee, comprising independent non-executive directors, reviews financial reporting, risk management, and internal controls, and has reviewed the company's H1 2024 unaudited interim results - The Audit Committee, composed of independent non-executive directors and chaired by Mr. Wang Guisheng, has reviewed the unaudited interim results for H1 2024[87](index=87&type=chunk) [Publication of Interim Report](index=44&type=section&id=Publication%20of%20Interim%20Report) The company's H1 2024 interim report, containing all required information, will be published on the Stock Exchange and company website in due course - The H1 2024 interim report will be published on the Stock Exchange and the company's website in due course[87](index=87&type=chunk) [Board of Directors](index=44&type=section&id=Board%20of%20Directors) As of the announcement date, the Board of Directors includes executive, non-executive, and independent non-executive directors - The Board of Directors includes Mr. Wu Yinhe, Ms. Li Birong, Mr. Wang Mohan (Executive Directors), Tan Sri Dato' Dr. Teh Hong Piow P.S.M, D.M.S.M (JP) (Chairman), Mr. Lee Seng Kan (BBS) (Non-executive Directors), and Mr. Wang Guisheng, Mr. Wu Weixiong, Mr. Chan Hak Kan (SBS, JP) (Independent Non-executive Directors)[87](index=87&type=chunk)

Financial Performance - The total revenue for the year ended December 31, 2023, was HKD 1,391,960,000, representing an increase of 30.5% from HKD 1,066,247,000 in 2022[72]. - The gross profit for the same period was HKD 195,292,000, up from HKD 165,331,000, indicating a growth of 18.2%[72]. - The operating profit increased to HKD 123,386,000, compared to HKD 78,147,000 in the previous year, reflecting a rise of 57.8%[72]. - The net profit for the year was HKD 92,100,000, which is a significant increase of 67.1% from HKD 54,930,000 in 2022[72]. - The basic earnings per share for the year was HKD 10.59, up from HKD 6.15, marking an increase of 72.5%[75]. - Other income for the year was HKD 70,840,000, significantly higher than HKD 6,544,000 in 2022, indicating a growth of 982.5%[72]. - The company reported a total comprehensive income of HKD 68,958,000 for the year, compared to a loss of HKD 16,310,000 in 2022[72]. - Profit attributable to the company's owners increased by 81.1% from HKD 45.9 million in 2022 to HKD 83.1 million in 2023, mainly due to increased revenue and government subsidies[131]. Revenue Segments - Revenue from the energy storage business reached HKD 356.1 million in 2023, up from HKD 271.7 million in 2022, reflecting a growth of approximately 31.1%[158]. - The photovoltaic film segment's revenue surged to HKD 367.2 million in 2023, compared to HKD 84.3 million in 2022, marking a substantial increase[145]. - The gross profit from the energy storage business increased from HKD 19.4 million in 2022 to HKD 31.0 million in 2023, driven by higher sales of commercial energy storage products[172]. - The gross loss from the photovoltaic film segment decreased from HKD 7.3 million in 2022 to HKD 3.7 million in 2023, attributed to increased sales and reduced unit production costs[173]. Assets and Liabilities - The total accounts receivable, finance lease receivables, and contract assets as of December 31, 2023, amounted to HKD 919,619,000, with an impairment loss provision of HKD 4,031,000[24]. - Non-current assets increased to HKD 1,212,973 thousand in 2023 from HKD 966,263 thousand in 2022, representing a growth of approximately 25.5%[77]. - Current assets decreased to HKD 1,120,370 thousand in 2023 from HKD 1,337,733 thousand in 2022, a decline of about 16.3%[77]. - Total liabilities decreased to HKD 907,376 thousand in 2023 from HKD 996,210 thousand in 2022, a reduction of about 8.9%[80]. - Net assets increased to HKD 1,225,283 thousand in 2023 from HKD 1,150,490 thousand in 2022, reflecting an increase of approximately 6.5%[80]. - The company's bank borrowings increased to HKD 376,991 thousand in 2023 from HKD 208,423 thousand in 2022, representing an increase of about 80.9%[77]. - The company's total liabilities decreased to 75,850 thousand HKD from 47,792 thousand HKD, indicating improved financial stability[83]. Operational Highlights - The company operates primarily in Hong Kong, focusing on automotive glass repair and replacement, and in China, producing and selling energy storage products and photovoltaic films[37]. - The company has established a professional and efficient photovoltaic EPC team in China and Canada, capitalizing on the rapid development opportunities in the distributed photovoltaic sector[120]. - The company has completed the construction of a photovoltaic film factory in Wuhu, Anhui Province, with a production capacity of 45 GW, and has set up a 5 GW production line in Malacca, Malaysia[134]. - The company is actively developing integrated and series products in the "light-storage-charging" category, including home energy storage systems, charging piles, and mobile energy storage products[119]. - The company is focusing on the dual development of commercial energy storage and residential "solar-storage-charging" products, with significant growth in sales expected[118]. Governance and Compliance - The company has established appropriate insurance coverage for directors and senior management for liabilities incurred during their tenure[4]. - The company is committed to maintaining transparency and independence in its financial reporting and auditing processes[100]. - The board has reviewed the implementation and effectiveness of mechanisms, resulting in satisfactory outcomes[33]. - The company has a strong governance framework, with independent non-executive directors overseeing key decisions[32]. Future Outlook - The company plans to continue expanding its energy storage and photovoltaic film businesses, focusing on market share growth and profitability improvement[162]. - The company aims to leverage the growing demand for energy storage systems to secure more projects and increase shipments in the coming years[118]. - The company anticipates completing the development of several mobile energy storage products by the first half of 2024 and will begin sending samples to potential customers[119]. - The company is focusing on research and development in lithium battery products and energy storage technologies, continuously enhancing its R&D investment[132].

Financial Performance - Revenue for the year ended December 31, 2023, was HKD 1,391,960, representing a 30.5% increase from HKD 1,066,247 in 2022[4] - Profit attributable to owners of the company increased by 81.1% to HKD 83,142 from HKD 45,898 in the previous year[4] - Basic earnings per share rose by 72.2% to HKD 10.59 compared to HKD 6.15 in 2022[4] - Gross profit for the year was HKD 195,292, up from HKD 165,331 in 2022[7] - Operating profit increased to HKD 123,386 from HKD 78,147, reflecting strong operational performance[7] - Total comprehensive income for the year was HKD 68,958, compared to a loss of HKD 16,310 in the previous year[7] - The company reported a net profit before tax of HKD 109,624,000 for the year, up from HKD 76,807,000 in the previous year, reflecting an increase of approximately 42.6%[74] - Profit attributable to the company's owners rose by 81.1% from HKD 45.9 million in 2022 to HKD 83.1 million in 2023, mainly due to increased revenue and government subsidies offset by higher financial costs from expanded bank borrowings[115] Assets and Liabilities - Non-current assets increased to HKD 1,212,973 from HKD 966,263, indicating growth in long-term investments[8] - Current assets decreased to HKD 1,120,370 from HKD 1,337,733, primarily due to a reduction in inventory[8] - Total equity rose to HKD 1,225,283 from HKD 1,150,490, reflecting improved financial stability[8] - The total assets of the company as of December 31, 2023, amounted to HKD 2,332,891,000, an increase from HKD 1,800,000,000 in the previous year[77] - Total liabilities decreased to HKD (1,108,060,000) in 2023 from HKD (812,824,000) in 2022[79] - As of December 31, 2023, the company had net current assets of HKD 213.0 million and cash and cash equivalents of HKD 206.5 million[158] Revenue Breakdown - The energy storage business generated external customer revenue of HKD 356,057,000, up from HKD 271,682,000 in the previous year, reflecting a growth of about 31.1%[70] - The EPC services segment reported external customer revenue of HKD 572,000,000, a decrease from HKD 626,096,000, indicating a decline of approximately 8.6%[70] - Revenue from customers in China reached HKD 962,301,000, up from HKD 749,296,000, indicating a growth of approximately 28.4%[76] - Revenue from the Canadian market increased by 38.2% to HKD 376.0 million, compared to HKD 272.1 million in the previous year[134] - Revenue from photovoltaic film surged to HKD 363.5 million, a 372.1% increase from HKD 77.0 million in 2022[135] Expenses and Costs - Research and development expenses rose to HKD 32,039,000 in 2023, compared to HKD 22,035,000 in 2022, indicating a focus on innovation[85] - Financial costs, including bank loan interest, surged to HKD 27,966,000 in 2023 from HKD 11,763,000 in 2022, indicating increased borrowing[85] - Administrative expenses rose from HKD 78.1 million for the year ended December 31, 2022, to HKD 120.7 million for the year ended December 31, 2023, mainly due to increased employee benefits and R&D expenses[146] - Sales and marketing costs increased from HKD 18.9 million for the year ended December 31, 2022, to HKD 35.6 million for the year ended December 31, 2023, primarily due to an increase in average employee numbers and related expenses[146] Corporate Governance and Compliance - The company has complied with the corporate governance code applicable to GEM listed companies throughout the year ended December 31, 2023[58] - The group has adopted new or revised Hong Kong Financial Reporting Standards effective from January 1, 2023, which do not impact the consolidated financial statements[20] - The group has reviewed its accounting policy disclosures and found them consistent with the relevant revisions[24] Market Expansion and Future Plans - The company has plans for market expansion and new product development in the energy storage and photovoltaic sectors[70] - The company aims to expand its energy storage business and enhance R&D capabilities to capture growth opportunities in the energy storage sector[153] - The company plans to continue developing photovoltaic film products and improve quality and performance in response to market demand[155] - The company has identified multiple target markets for overseas expansion, including Indonesia, South Africa, and the Philippines, to develop related businesses[156] Employee and Workforce - As of December 31, 2023, the group had 597 full-time employees, an increase from 518 as of December 31, 2022, with total employee costs amounting to HKD 144.4 million, up from HKD 104.4 million in the previous year[49] Other Financial Information - The company did not recommend any final dividend for the year ended December 31, 2023, consistent with the previous year[50] - The company received government grants totaling HKD 60,740,000 in 2023, a significant increase from zero in 2022, supporting operational costs[83] - The deferred tax expense for 2023 was HKD 12,959,000, slightly down from HKD 13,654,000 in 2022, reflecting stable tax management[87]

Financial Performance - For the three months ended September 30, 2023, the company reported a profit attributable to owners of the company of HKD 34,547,000, compared to HKD 28,612,000 for the same period in 2022, representing an increase of 20.5%[18]. - The diluted earnings per share for the nine months ended September 30, 2023, was HKD 6.09, a decrease of 11.4% from HKD 6.87 for the same period in 2022[18]. - The net profit attributable to the company's owners for the nine months ended September 30, 2023, was HKD 50.454 million, a decrease from HKD 59.010 million in the same period of 2022, reflecting a decline of approximately 14.8%[88]. - The company's net profit attributable to shareholders for the nine months ended September 30, 2023, was HKD 48.1 million, compared to HKD 50.5 million for the same period in 2022[100]. - Profit attributable to owners decreased by 4.7% from HKD 50.5 million to HKD 48.1 million during the same period, primarily due to a decline in overall gross margin[148]. Revenue Growth - Total revenue for the nine months ended September 30, 2023, was HKD 65,976,000, significantly up from HKD 5,290,000 in the same period of 2022, indicating a substantial growth[12]. - For the nine months ended September 30, 2023, the company's revenue increased from HKD 556.4 million to HKD 841.6 million, representing a growth of 51.2%[48]. - For the nine months ended September 30, 2023, the company's revenue from energy storage business increased to HKD 257.7 million, compared to HKD 141.0 million for the same period in 2022, representing an increase of approximately 82.9%[80]. - The revenue from other businesses increased to HKD 44.3 million for the nine months ended September 30, 2023, compared to HKD 24.0 million for the same period in 2022, primarily due to increased sales of electric forklifts[23]. - The revenue from photovoltaic film for the nine months ended September 30, 2023, was HKD 255.5 million, up from HKD 28.4 million for the same period in 2022, primarily due to increased sales volume following the launch of new business[106]. Government Grants and Subsidies - Government grants received amounted to HKD 62,987,000 for the nine months ended September 30, 2023, compared to HKD 3,203,000 in the same period of 2022, reflecting a significant increase[12]. - The company received government subsidies totaling approximately HKD 61.24 million for operating costs and HKD 337,000 for R&D, compared to zero and HKD 834,000 respectively in 2022[78]. - The company received approximately HKD 1.253 million in subsidies under the Employment Support Scheme during the nine months ended September 30, 2022[96]. Operational Developments - The company operates four service centers and a fleet providing automotive glass repair and replacement services in Hong Kong, contributing to its operational expansion[21]. - The company is actively engaged in the development of new technologies and products in the renewable energy sector, particularly in photovoltaic materials[45]. - The company is focused on maintaining its competitive edge in the EPC services for renewable energy projects[45]. - The company operates a subsidiary, Polaron Energy Corp., in Canada, providing EPC services to residential users in overseas markets[103]. - The company has production facilities for photovoltaic film in Wuhu, Anhui Province, China, and a production line in Malaysia[104]. Cost and Expenses - The cost of revenue rose by HKD 285.2 million, from HKD 556.4 million to HKD 841.6 million, aligning with the revenue increase[48]. - The gross profit for the nine months ended September 30, 2023, was HKD 121,059 thousand, down from HKD 140,639 thousand in the same period of 2022, indicating a decline of about 14%[110]. - Sales and marketing costs increased from HKD 12.6 million to HKD 25.4 million, mainly due to higher employee benefits and sales-related expenses[152]. - Administrative expenses increased from HKD 55.5 million for the nine months ended September 30, 2022, to HKD 91.1 million for the nine months ended September 30, 2023, representing a rise of 64.1%[169]. - The increase in administrative expenses was primarily due to a rise in employee benefits expenses resulting from an increase in average employee headcount and share-based compensation, as well as increased R&D expenditures and professional fees related to a potential transfer to the main board of the stock exchange[169]. Corporate Governance - The company has maintained consistent accounting policies in line with the Hong Kong Financial Reporting Standards for the financial year starting January 1, 2023[9]. - The company has complied with the corporate governance code as per GEM listing rules during the nine months ended September 30, 2023[64]. - The company has established an audit committee in compliance with GEM listing rules, which includes three independent non-executive directors[167]. - The company's management will continue to review its corporate governance standards to meet increasing regulatory requirements and stakeholder expectations[64]. Strategic Focus - The company anticipates continued growth in its electric storage business, aligning with market trends towards renewable energy solutions[19]. - The company has a strategic focus on enhancing its product offerings and expanding its market presence through potential acquisitions and new technology developments[19]. - The management discussed plans for market expansion and potential mergers and acquisitions to enhance growth opportunities[45]. - The company continues to emphasize vertical integration in its operations, enhancing its competitive advantage in the energy storage market[124]. Shareholder Information - The board did not recommend any dividend payment for the nine months ended September 30, 2023, consistent with the previous year[40]. - As of September 30, 2023, a total of 16,211,807 share options remain unexercised under the stock option plan adopted on May 31, 2017[63]. - The company granted 2,200,000 share options under the stock option plan during the nine months ended September 30, 2023[63]. - The weighted average number of ordinary shares issued for the nine months ended September 30, 2023, was 785,188 thousand shares, compared to 728,860 thousand shares for the same period in 2022[100]. - The company reported a significant ownership concentration, with Dr. Li Hsien-Yi holding approximately 63.97% of the issued share capital through various controlled entities[58].

Financial Performance - Revenue for the nine months ended September 30, 2023, was HKD 962,652,000, representing a 38.1% increase from HKD 697,073,000 in the same period of 2022[5] - Profit attributable to owners of the company for the nine months ended September 30, 2023, was HKD 48,081,000, a decrease of 4.7% compared to HKD 50,454,000 in 2022[5] - Basic earnings per share for the nine months ended September 30, 2023, was 6.12 HK cents, down 11.6% from 6.92 HK cents in the previous year[5] - Revenue for the three months ended September 30, 2023, was HKD 411,230,000, an increase from HKD 346,810,000 in the same period of 2022, representing a growth of 18.5%[20] - Profit for the three months ended September 30, 2023, was HKD 37,826,000, up from HKD 33,064,000 in the same period of 2022, representing an increase of 14.5%[20] - The total comprehensive income for the nine months ended September 30, 2023, was HKD 54,734,000, down from HKD 59,010,000 in the same period of 2022, reflecting a decrease of 7.7%[20] Revenue Breakdown - The energy storage business generated revenue of HKD 257,716,000 for the nine months ended September 30, 2023, compared to HKD 140,987,000 in 2022, reflecting an increase of 83%[13] - Revenue from photovoltaic film increased significantly to HKD 255,471,000 for the nine months ended September 30, 2023, from HKD 28,388,000 in the same period of 2022[13] - The EPC services revenue decreased by 21.8% from HKD 470.0 million to HKD 367.6 million year-on-year[48] - Revenue from energy storage business increased to HKD 257.7 million for the nine months ended September 30, 2023, compared to HKD 141.0 million for the same period in 2022[58] - Revenue from photovoltaic film increased to HKD 255.5 million for the nine months ended September 30, 2023, compared to HKD 28.4 million for the same period in 2022[65] Government Support - Government grants received for the nine months ended September 30, 2023, amounted to HKD 62,987,000, compared to HKD 3,203,000 in 2022[16] - The company has received significant support from the Chinese government for operational costs and R&D, totaling approximately HKD 61,240,000 for the nine months ended September 30, 2023[17] - Other income for the nine months ended September 30, 2023, primarily included government subsidies related to the production and sale of photovoltaic film in China[68] Expenses and Costs - Gross profit for the nine months ended September 30, 2023, was HKD 121,059,000, down from HKD 140,639,000 in the same period of 2022, reflecting a decrease of 14%[20] - The cost of revenue increased to HKD 841.6 million for the nine months ended September 30, 2023, from HKD 556.4 million for the same period in 2022, in line with revenue growth[66] - Administrative expenses increased to HKD 91.1 million for the nine months ended September 30, 2023, from HKD 55.5 million for the same period in 2022, mainly due to increased employee benefits and R&D expenses[76] Shareholder Information - The company has a total of 393,466,542 shares held by concert parties, representing approximately 50.10% of the issued share capital[78] - The total number of shares held by concert parties associated with Datuk Wira Dong Qingbo is 502,343,417, which is 63.97% of the issued share capital[88] - The company has a significant concentration of ownership, with major shareholders holding over 68% of the issued share capital collectively[84] - The company has granted a total of 2,200,000 share options under the share option scheme as of September 30, 2023[116] Corporate Governance - The company has established an audit committee to review and supervise the financial reporting process and risk management[110] - The company has complied with the corporate governance code as per GEM listing rules during the nine months ended September 30, 2023[108] - There are no reported interests or positions held by directors or controlling shareholders in any competing businesses as of September 30, 2023[101] - The company has ensured that there is no competitive business overlap with Xinyi Solar Holdings Limited, which is controlled by certain directors and shareholders[107] Dividends - The company did not recommend any dividend for the nine months ended September 30, 2023, compared to no dividend in the same period of 2022[40] - The board does not recommend the payment of dividends for the nine months ended September 30, 2023, consistent with the previous year[102]

Financial Performance - For the six months ended June 30, 2023, the company reported revenue of HKD 551,422,000, a 57.5% increase compared to HKD 350,263,000 for the same period in 2022[7] - The gross profit for the same period was HKD 59,324,000, down 27.2% from HKD 81,496,000 in the previous year[7] - Operating profit decreased to HKD 28,721,000, a decline of 27.0% compared to HKD 39,310,000 for the six months ended June 30, 2022[7] - The net profit for the period was HKD 16,908,000, representing a 34.9% decrease from HKD 25,946,000 in the prior year[7] - The company reported a total comprehensive income of HKD (47,535) thousand for the six months ended June 30, 2023, compared to HKD (16,592) thousand for the same period in 2022, indicating a significant decline[35] - Basic earnings per share for the six months ended June 30, 2023, was HKD 1.72, down from HKD 3.01 in the same period of 2022, reflecting a decrease of approximately 42.8%[35] - The company reported a net profit attributable to owners of HKD 9,864 thousand for the six months ended June 30, 2023, down from HKD 21,717 thousand in the same period of 2022, a decrease of approximately 54.5%[35] Assets and Liabilities - As of June 30, 2023, the company's total equity was HKD 1,136,658,000, a slight decrease from HKD 1,150,490,000 as of December 31, 2022[18] - The company’s total assets decreased to HKD 1,177,165 thousand as of June 30, 2023, from HKD 1,337,733 thousand as of December 31, 2022, reflecting a decline of about 12%[36] - Total liabilities increased to HKD 1,021,979 thousand as of June 30, 2023, compared to HKD 996,210 thousand as of December 31, 2022, indicating a rise of about 2.6%[36] - The company’s cash and cash equivalents decreased to HKD 111,786 thousand as of June 30, 2023, from HKD 162,055 thousand as of December 31, 2022, a decline of approximately 31%[36] - The total liabilities decreased to HKD 546,469,000 as of June 30, 2023, from HKD 774,173,000 at the end of 2022, a reduction of 30%[113] Revenue Breakdown - Revenue from China accounted for HKD 375,121,000, representing a significant increase of 81.5% from HKD 206,854,000 in the previous year[49] - The revenue from EPC services for the six months ended June 30, 2023, was HKD 215,494, a decrease from HKD 242,698 in the same period of 2022, reflecting a decline of 11.2%[64] - The revenue from photovoltaic film increased significantly to HKD 125.8 million, compared to HKD 9.0 million in the same period of 2022, marking a growth of 1,220.4%[200] - The energy storage business generated revenue of HKD 158.9 million in the first half of 2023, up from HKD 66.3 million in the first half of 2022, due to increased sales of commercial energy storage products[160] Expenses and Costs - The company’s administrative expenses increased to HKD 60,460,000, up from HKD 38,725,000 in the previous year, indicating a rise in operational costs[7] - The cost of inventory for the six months ended June 30, 2023, was HKD 383,331,000, compared to HKD 181,152,000 in the same period of 2022, showing a significant increase in inventory costs[76] - Employee benefits expenses, including director remuneration, rose to HKD 47,662,000 for the six months ended June 30, 2023, from HKD 29,390,000 in the same period of 2022, highlighting increased labor costs[76] - The gross profit for the energy storage business for the six months ended June 30, 2023, was HKD 4,466, compared to HKD 7,501 for the same period in 2022, indicating a decline of 40.5%[66] Cash Flow and Financing - Cash flow used in operating activities was HKD (153,524,000), compared to HKD (236,261,000) in the previous year, indicating an improvement[40] - The company reported a net cash outflow of HKD (48,126,000) for the period, with cash and cash equivalents at the end of the period totaling HKD 111,786,000[40] - Financing activities generated a net cash inflow of HKD 196,276,000, compared to HKD 125,441,000 in the same period last year[40] - Financial costs from bank borrowings increased significantly to HKD 12,440,000 for the six months ended June 30, 2023, compared to HKD 1,976,000 for the same period in 2022, representing an increase of approximately 529.5%[95] Strategic Focus and Future Plans - The company plans to focus on expanding its market presence and developing new technologies to enhance its product offerings[7] - The company is committed to improving its financial performance and exploring potential mergers and acquisitions to drive growth[7] - The company plans to expand its operations in the photovoltaic film market, leveraging its production capabilities in China[41] - The company aims to complete the construction of its factory and production lines in China by the end of 2023, achieving a capacity of 45 GW[158] - The company is actively exploring opportunities to expand its energy storage products into overseas markets, particularly in North America[171] Research and Development - The company is actively investing in R&D for lithium battery products and energy storage technologies, emphasizing the importance of innovation for long-term development[152] - Research and development expenses increased to HKD 17,018,000 for the six months ended June 30, 2023, from HKD 10,904,000 in the same period of 2022, reflecting a focus on innovation[76] - The company plans to enhance its research and development efforts for photovoltaic films, focusing on improving quality and performance to establish long-term partnerships with customers[158]