Financial Performance - For the first quarter of 2023, the company reported revenue of HKD 278,342,000, a significant increase from HKD 105,984,000 in the same period last year, representing a growth of 162.5%[17] - The gross profit for the first quarter was HKD 27,136,000, slightly down from HKD 28,614,000 year-over-year, indicating a decrease of 5.2%[17] - Operating profit increased to HKD 11,545,000, up from HKD 8,028,000 in the previous year, reflecting a growth of 43.1%[17] - The net profit for the period was HKD 7,044,000, compared to HKD 4,229,000 in the same quarter last year, marking an increase of 66.5%[19] - The total comprehensive income for the quarter was HKD 30,943,000, significantly higher than HKD 8,430,000 in the previous year, representing a growth of 267.5%[19] - Basic earnings per share for the quarter were HKD 0.83, up from HKD 0.52 year-over-year, indicating an increase of 59.6%[19] - Profit attributable to the company's owners rose by 74.0%, from HKD 3.8 million in Q1 2022 to HKD 6.5 million in Q1 2023[44] Revenue Sources - The revenue from the solar power business, including EPC services, amounted to HKD 114,251,000, compared to HKD 20,383,000 in the previous year, indicating a growth of about 460.5%[28] - The automotive glass repair and replacement services generated revenue of HKD 45,692,000, compared to no revenue reported in the previous year[28] - The energy storage business generated revenue of HKD 114.2 million in Q1 2023, a 459.8% increase from HKD 20.4 million in Q1 2022[48] - The EPC services segment contributed HKD 95.8 million in revenue, up 34.9% from HKD 71.0 million in the previous year[48] - The photovoltaic film segment generated HKD 45.7 million in revenue, marking a new revenue stream as it was not present in Q1 2022[48] Other Income and Expenses - The company reported other income of HKD 14,686,000, a substantial increase from HKD 976,000 in the previous year, reflecting a growth of 1401.2%[17] - The company reported a total tax expense of HKD 2,778,000 for the current quarter, down from HKD 4,101,000 in the previous year, representing a decrease of approximately 32.3%[31] - Selling and marketing expenses increased to HKD 6.1 million for the three months ended March 31, 2023, from HKD 3.2 million for the same period in 2022, due to higher employee benefits and sales-related costs[61] - Administrative expenses rose to HKD 26.8 million for the three months ended March 31, 2023, from HKD 19.1 million for the same period in 2022, driven by increased employee benefits and professional fees related to a potential listing on the main board[61] Corporate Governance and Shareholder Information - The company has adhered to the corporate governance code as per GEM listing rules during the three months ending March 31, 2023[73] - Major shareholders hold significant stakes, with Dr. Li Hsien Yi owning approximately 16.93% of the issued shares[87] - The company has a substantial concentration of ownership, with 49.04% of shares held by concert parties associated with Dr. Li Hsien Yi[87] - The company has established a strict code of conduct for securities trading by directors, in compliance with GEM listing rules[85] - The company has no reported interests or potential conflicts of interest among directors or major shareholders in competing businesses as of March 31, 2023[72] Future Plans and Developments - The company has plans for market expansion and new product development in the renewable energy sector, focusing on solar and wind energy solutions[29] - The company is evaluating the impact of new accounting standards issued by the Hong Kong Institute of Certified Public Accountants, which are not yet effective[27] - The company is in the early stages of launching new businesses, including photovoltaic films, which currently have lower gross margins[55] - The company has established production facilities for lithium batteries and energy storage products in Jiangsu Province, China, focusing on integrated R&D and production[44] - The company has expanded its photovoltaic film production capabilities with facilities in Anhui Province, China, and multiple production lines in Malaysia[50] Share Options and Dividends - The company did not issue any share options during the quarter, with a total of 14,429,864 options remaining unexercised as of March 31, 2023[11] - The company did not declare any dividends for the three months ending March 31, 2023[35] - No dividends were recommended for the three months ending March 31, 2023, consistent with the previous year[74]

Financial Performance - For the three months ended March 31, 2023, the company reported revenue of HKD 278,342,000, representing a 162.6% increase compared to HKD 105,984,000 in the same period of 2022[7] - The profit attributable to the company's owners for the same period was HKD 6,527,000, a 74.0% increase from HKD 3,751,000 in the previous year[7] - Basic earnings per share for the three months ended March 31, 2023, was HKD 0.83, up 59.6% from HKD 0.52 in the same period of 2022[7] - The total comprehensive income for the period was HKD 30,943,000, compared to HKD 8,430,000 in the same period of 2022[23] - The company reported a gross profit of HKD 27,136,000 for the three months ended March 31, 2023, compared to HKD 28,614,000 in the previous year[23] - The operating profit for the period was HKD 11,545,000, an increase from HKD 8,028,000 in the same period last year[23] - The company experienced a foreign exchange gain of HKD 23,899,000, compared to HKD 4,201,000 in the previous year[23] - The company’s total comprehensive income for the three months ended March 31, 2023, was HKD 29.9 million, compared to HKD 7.7 million for the same period in 2022[33] - Net profit attributable to owners of the company was HKD 6.5 million for the three months ended March 31, 2023, compared to HKD 3.8 million in the same period of 2022[42] Revenue Breakdown - The energy storage business generated revenue of HKD 114,251,000, significantly up from HKD 20,383,000 in the previous year[12] - The EPC services for photovoltaic power stations contributed HKD 95,757,000 in revenue, compared to HKD 70,962,000 in the same period last year[12] - Revenue from energy storage business increased to HKD 114.2 million for the three months ended March 31, 2023, compared to HKD 20.4 million for the same period in 2022, primarily due to increased sales of commercial energy storage products[37] - Revenue from EPC services rose to HKD 95.8 million for the three months ended March 31, 2023, up from HKD 71.0 million in the same period of 2022, driven by an increase in the number of EPC service contracts in China and Canada[37] - Revenue from photovoltaic film reached HKD 45.7 million for the three months ended March 31, 2023, contributing to overall revenue growth[62] - Total revenue for the three months ended March 31, 2023, was HKD 278.3 million, a significant increase from HKD 106.0 million in the same period of 2022, representing a growth of 162.6%[62] Expenses and Costs - Cost of revenue increased from HKD 77.4 million for the three months ended March 31, 2022, to HKD 251.2 million for the same period in 2023, consistent with revenue growth[38] - Gross profit decreased to HKD 27.1 million for the three months ended March 31, 2023, down from HKD 28.6 million in the same period of 2022, with gross margin dropping from 27.0% to 9.7%[38] - Administrative expenses increased from HKD 19.1 million to HKD 26.8 million for the three months ended March 31, 2023, representing a 40.4% increase, primarily due to higher employee benefits and professional fees related to potential transfer to the main board of the stock exchange[93] - Sales and marketing costs increased to HKD 6.1 million for the three months ended March 31, 2023, from HKD 3.2 million in the same period of 2022, primarily due to increased employee benefits and sales-related expenses[41] Dividends and Shareholder Information - The company did not recommend the payment of dividends for the three months ended March 31, 2023, consistent with the previous year[15] - The company did not declare any dividends for the three months ended March 31, 2023, consistent with the previous year[114] - As of March 31, 2023, Dr. Li Xianyi holds 132,990,198 shares, representing approximately 16.93% of the company's issued share capital[77] - Mr. Wu Yinha holds 25,195,745 shares, accounting for approximately 3.20% of the company's issued share capital[71] - As of March 31, 2023, Mr. Li Shengdian holds 46,048,013 shares, representing approximately 5.86% of the company's issued share capital[77] - The company has a total of 14,429,864 stock options that remain unexercised as of March 31, 2023[86] - The company has not granted any stock options under the plan during the three months ended March 31, 2023[86] - Dr. Li Xianyi's controlled corporation holds 9,441,143 shares, which is approximately 1.20% of the issued share capital[77] Corporate Governance - The company has established an Audit Committee to review and supervise financial reporting procedures and risk management[90] - The Audit Committee consists of three independent non-executive directors, with Mr. Wang Guisheng serving as the chairman[90] - The company has no known conflicts of interest with directors or controlling shareholders in competing businesses as of March 31, 2023[88] - The company has no overlapping customers with Xinyi Solar Holdings Limited, ensuring no competitive business exists between the two entities[112] Business Operations - The company has established production facilities for lithium batteries and energy storage products in Zhangjiagang, Jiangsu Province, focusing on integrated R&D, design, production, and system integration[33] - The company’s energy storage business primarily targets commercial and residential energy storage products, including integrated systems for lithium batteries and energy management systems[33] - The company provides EPC services for the installation of photovoltaic power stations in China[34] - The company has not yet applied new accounting standards issued by the Hong Kong Institute of Certified Public Accountants, which may impact its financial performance[25] - The company’s financial costs increased due to expanded bank borrowings related to business growth[33] - Government subsidies contributed HKD 13.9 million to other income for the three months ended March 31, 2023, compared to HKD 0.6 million in the same period last year[27]

Financial Performance - Revenue for the year ended December 31, 2022, was HKD 1,066,247,000, representing an increase of 110.9% compared to HKD 506,187,000 in 2021[45]. - Gross profit for the same period was HKD 165,331,000, up 31.0% from HKD 126,139,000 in the previous year[45]. - Operating profit decreased to HKD 78,147,000, a decline of 8.8% from HKD 85,160,000 in 2021[45]. - Net profit for the year was HKD 54,930,000, down 17.2% from HKD 66,321,000 in 2021[45]. - Basic earnings per share for the year was HKD 6.15, compared to HKD 9.34 in the previous year, reflecting a decrease of 34.5%[47]. - The company reported a total comprehensive income of HKD (16,310,000) for the year, a significant decline from HKD 84,054,000 in 2021[45]. - Profit attributable to owners decreased by 26.7% from HKD 62.6 million in 2021 to HKD 45.9 million in 2022, primarily due to the absence of a government subsidy of HKD 21.7 million received in 2021[63]. - Total revenue for the year ended December 31, 2022, was HKD 1,066.2 million, an increase of HKD 560.0 million or 110.6% compared to HKD 506.2 million in 2021[146]. Assets and Liabilities - Total assets as of December 31, 2022, amounted to HKD 1,337,733,000, an increase from HKD 972,731,000 in 2021[50]. - Non-current assets increased to HKD 966,263,000 from HKD 475,340,000 in the previous year, showing a growth of 103.3%[50]. - Current liabilities rose to HKD 996,210,000, compared to HKD 543,982,000 in 2021, indicating an increase of 83.2%[50]. - Non-current liabilities increased to HKD 157.3 million in 2022 from HKD 134.8 million in 2021, with bank borrowings rising to HKD 130.6 million[64]. - The net debt-to-equity ratio as of December 31, 2022, was 15.4%, a shift from a net cash position reported a year prior[161]. - The group had bank borrowings of HKD 339.0 million as of December 31, 2022, compared to HKD 227.3 million a year earlier, indicating an increase in leverage[161]. Revenue Segments - Revenue from the energy storage business increased by approximately 168.8% compared to the previous year[97]. - Revenue and gross profit from EPC services grew by approximately 102.2% and 47.3% respectively compared to the same period last year[100]. - The energy storage services segment contributed HKD 271.7 million, representing 25.5% of total revenue, an increase of 168.7% from HKD 101.1 million in 2021[114]. - The EPC services segment generated HKD 626.1 million, accounting for 58.7% of total revenue, up 102.2% from HKD 309.7 million in 2021[114]. - The photovoltaic film business, which started production in Q4 2021, generated HKD 77.0 million in revenue for the year 2022[116]. Employee and Management - As of December 31, 2022, the group had approximately 518 full-time employees, primarily located in China, Hong Kong, Canada, and Malaysia[29]. - The total employee cost for the year ended December 31, 2022, was HKD 104.4 million, up from HKD 78.7 million in 2021, reflecting an increase in workforce to 518 employees[165]. - The group provides employee benefits in line with current market conditions and may grant discretionary bonuses based on performance[29]. - The group has maintained good working relationships with employees and provides training to keep them informed about product and service developments[29]. Cash Flow and Investments - The company reported a net cash outflow from operating activities of HKD (296,455,000), compared to a positive inflow of HKD 238,000 in the previous year[71]. - Cash used in investing activities increased significantly to HKD (469,212,000) from HKD (167,380,000), indicating a rise in capital expenditures[71]. - Financing activities generated a net cash inflow of HKD 498,460,000, up from HKD 443,542,000, reflecting increased bank borrowings[71]. - The group generated capital expenditures of HKD 447.9 million for the year ended December 31, 2022, significantly higher than HKD 172.7 million in 2021, primarily related to the development of photovoltaic film production facilities in China[163]. Financial Reporting and Compliance - The group is responsible for preparing true and fair consolidated financial statements in accordance with Hong Kong Financial Reporting Standards[23]. - The independent auditor's report aims to provide reasonable assurance that the consolidated financial statements are free from material misstatement due to fraud or error[25]. - The company is committed to maintaining transparency and accuracy in its financial reporting, as confirmed by the board of directors[59]. - The company’s financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with applicable disclosure requirements[83]. Future Outlook and Strategy - The company plans to enhance its market presence through strategic acquisitions and new product developments in the upcoming fiscal year[57]. - The company plans to focus on expanding its market presence and developing new technologies to drive future growth[63]. - The company is committed to increasing its market share in the energy storage and photovoltaic sectors, driven by the global energy transition and green development initiatives[105]. - The company will continue to invest resources in R&D to improve product performance and reduce production costs, enhancing its competitiveness in the market[102]. Inventory and Impairment - As of December 31, 2022, the group's inventory net value was HKD 519,419,000 after deducting impairment provisions of approximately HKD 1,914,000, primarily consisting of solar components, lithium battery products, battery packs, energy storage systems, photovoltaic film raw materials, and various types of automotive glass[6]. - The total amount of trade receivables, finance lease receivables, and contract assets as of December 31, 2022, was HKD 703,099,000, with an impairment loss provision of HKD 3,001,000[13]. - Inventory write-downs and impairment provisions rose to HKD 2,360,000 from HKD 305,000, indicating increased inventory challenges[71]. Shareholder Information - The company did not recommend any final dividend for the year ended December 31, 2022, consistent with the previous year[167]. - The company raised net proceeds of HKD 393.2 million from a rights issue in September 2022, with specific plans for its use not detailed[170].

Financial Performance - Revenue for the year ended December 31, 2022, was HKD 1,066.2 million, up from HKD 506.2 million in 2021, indicating a growth of 110.9%[19] - The gross profit for the same period was HKD 165.3 million, compared to HKD 126.1 million in 2021, reflecting an increase of 31.1%[19] - The company reported a net profit of HKD 54.9 million for the year, down from HKD 66.3 million in the previous year, a decrease of 17.2%[19] - The company’s basic earnings per share for the year were HKD 6.15, down from HKD 9.34 in 2021, a decline of 34.5%[19] - Profit attributable to owners of the company decreased by 26.7% to HKD 45,898 from HKD 62,629 in the previous year[40] - The diluted earnings per share fell to HKD 6.11 in 2022 compared to HKD 9.25 in 2021, reflecting a decrease of about 34%[74] - The overall gross profit margin decreased from 24.9% in 2021 to 15.5% in 2022, mainly due to lower margins in energy storage and EPC services[148] Assets and Liabilities - As of December 31, 2022, total assets amounted to HKD 1,337.7 million, an increase from HKD 972.7 million in the previous year, representing a growth of approximately 37.4%[13] - The company’s net assets increased to HKD 1,150.5 million as of December 31, 2022, from HKD 769.3 million in the previous year, a growth of 49.4%[13] - The total liabilities as of December 31, 2022, were HKD 812,824,000, indicating a significant leverage position[35] - The company reported total liabilities of HKD 1,153,506,000 in 2022, up from HKD 678,737,000 in 2021, which is an increase of about 70%[84] - The group had net current assets of HKD 341.5 million as of December 31, 2022, down from HKD 428.7 million in 2021[158] Revenue Segmentation - The total revenue for the year ended December 31, 2022, was HKD 1,066,247,000, with external customer revenue contributions from various segments: Energy Storage Business (HKD 271,682,000), EPC Services (HKD 626,096,000), Photovoltaic Film (HKD 76,977,000), Automotive Glass Repair and Replacement Services (HKD 44,708,000), and Others (HKD 46,784,000)[31] - The energy storage business generated revenue of HKD 271.7 million in 2022, up approximately 168.8% compared to HKD 101.1 million in 2021, driven by increased sales of commercial energy storage products[121][114] - The revenue from the EPC services segment was HKD 626.1 million, up 102.2% from HKD 309.7 million in the previous year, primarily due to an increase in EPC service contracts in China and Canada[145] - Revenue from the photovoltaic film business reached HKD 77.0 million for the year ended December 31, 2022[176] Investments and Future Plans - The company plans to establish new photovoltaic film production lines in Wuhu, Anhui Province, China, and Malaysia[3] - The company is focusing on the development and sales of energy storage products, including integrated systems that consist of lithium batteries and energy management systems[109] - The company plans to focus on the photovoltaic film business, aiming to accelerate certification and product introduction with photovoltaic module manufacturers in 2023[156] - The company has allocated HKD 393.2 million for additional working capital in the photovoltaic film business, with HKD 49.0 million already utilized as of December 31, 2022[168] Costs and Expenses - Cost of goods sold increased significantly to HKD 688,498,000 in 2022 from HKD 259,927,000 in 2021, representing a growth of approximately 164%[66] - Research and development expenses rose to HKD 22,035,000 in 2022, up from HKD 17,475,000 in 2021, indicating an increase of about 26%[66] - Administrative expenses increased to HKD 78.1 million from HKD 62.0 million in the previous year, primarily due to higher employee benefits and increased R&D expenditures[151] - Financial costs increased to HKD 4,781, compared to no financial costs reported in the previous year[53] Employee and Operational Insights - As of December 31, 2022, the group had 518 full-time employees, an increase from 364 employees as of December 31, 2021[193] - Total employee costs for the year ended December 31, 2022, amounted to HKD 104.4 million, up from HKD 78.7 million in 2021, reflecting a significant increase in workforce and compensation[193] - The group maintained good relationships with all employees and provided adequate business and professional training, ensuring competitive compensation and regular reviews[193] Market and Risk Factors - The company is subject to market volatility risks associated with being listed on the GEM, which may affect the liquidity of its securities[39] - The group reported no significant difficulties or liquidity issues due to exchange rate fluctuations, and did not use any financial instruments for hedging during the year[197]

Financial Performance - Revenue for the three months ended September 30, 2022, was HKD 346.81 million, a significant increase from HKD 137.23 million in the same period last year, representing a growth of 153%[7] - Gross profit for the same period was HKD 59.14 million, compared to HKD 33.80 million in the previous year, reflecting a gross margin improvement[7] - Operating profit for the three months ended September 30, 2022, was HKD 44.16 million, up from HKD 14.13 million year-over-year, indicating a growth of 212%[7] - Net profit attributable to owners for the three months was HKD 28.61 million, compared to HKD 8.64 million in the same period last year, marking an increase of 231%[9] - Basic earnings per share for the three months was HKD 3.88, compared to HKD 1.29 in the same period last year, reflecting a significant increase[9] - For the nine months ended September 30, 2022, total revenue reached HKD 697.07 million, up from HKD 253.06 million in the same period last year, representing a growth of 175%[7] - The company’s operating profit for the nine months was HKD 83.47 million, compared to HKD 21.99 million in the previous year, indicating a growth of 279%[7] - Profit attributable to the company's owners surged by 259.7%, rising from HKD 14.0 million to HKD 50.5 million for the nine months ended September 30, 2022[41] - The company's basic earnings per share increased to HKD 6.92 for the nine months ended September 30, 2022, compared to HKD 2.10 for the same period in 2021[34] - The diluted earnings per share for the nine months ended September 30, 2022, was HKD 6.87, compared to HKD 2.08 in the same period of 2021[38] Comprehensive Income - The company reported a total comprehensive income of HKD (24.44) million for the three months, down from HKD 10.80 million in the previous year, primarily due to foreign exchange losses[9] - The total comprehensive income for the nine months was HKD (29.02) million, compared to HKD 20.20 million in the previous year, impacted by foreign exchange fluctuations[9] Revenue Breakdown - The energy storage business generated revenue of HKD 140,987 thousand for the nine months ended September 30, 2022, compared to HKD 72,569 thousand in the previous year, marking an increase of about 94%[22] - The EPC services segment reported revenue of HKD 469,985 thousand for the nine months ended September 30, 2022, up from HKD 104,789 thousand in the same period of 2021, reflecting a growth of approximately 348%[22] - Revenue from energy storage business increased to HKD 141.0 million for the nine months ended September 30, 2022, compared to HKD 72.6 million in the same period of 2021, driven by higher sales of industrial energy storage systems[54] - Revenue from the new photovoltaic film business reached HKD 28.4 million for the nine months ended September 30, 2022, following its launch in Q4 2021[54] Expenses and Costs - The company reported a total tax expense of HKD 21,759 thousand for the nine months ended September 30, 2022, compared to HKD 6,683 thousand in the same period of 2021, representing an increase of approximately 226%[28] - Total revenue cost increased to HKD 556.4 million for the nine months ended September 30, 2022, from HKD 193.6 million in the same period of 2021, aligning with revenue growth[55] - Selling and marketing expenses rose to HKD 12.6 million for the nine months ended September 30, 2022, from HKD 7.8 million in the same period of 2021, mainly due to increased employee benefits and sales-related costs[60] - Administrative expenses increased to HKD 55.5 million for the nine months ended September 30, 2022, from HKD 37.8 million in the same period of 2021, driven by higher employee benefits and R&D expenditures[60] Shareholder Information - As of September 30, 2022, Dr. Li Xianyi holds 132,990,198 shares, representing approximately 16.94% of the company's issued share capital[82] - Mr. Dong Qingbo owns 48,878,216 shares, accounting for about 6.23% of the company's issued share capital[82] - The total shares held by Dr. Li Xianyi and Mr. Dong Qingbo in concerted action amount to 502,343,417 shares, which is approximately 63.99% of the company's issued share capital[82] - Mr. Li Shengdian holds 46,048,013 shares, representing about 5.87% of the company's issued share capital[82] - The total shares held by Mr. Li Shengdian in concerted action is 512,259,017 shares, which is approximately 65.25% of the company's issued share capital[82] - The company has a significant concentration of ownership, with major shareholders holding over 68% of the issued share capital collectively[86] - The company’s major shareholders include Dr. Li Xianyi, Mr. Dong Qingbo, and others, who collectively control a substantial portion of the shares[87] Corporate Governance - The company has adopted a strict code of conduct for securities trading by directors, in compliance with GEM Listing Rules[80] - No violations of the trading standards have been reported by the directors as of September 30, 2022[80] - The company has ensured no competitive business overlap with Xinyi Solar Holdings Limited, maintaining distinct geographical operations[94] - The company has adhered to the corporate governance code as per GEM listing rules during the nine months ending September 30, 2022[99] - As of September 30, 2022, there were no reported interests or potential conflicts of interest from directors or controlling shareholders in competing businesses[98] - The company’s management continues to review corporate governance standards to meet increasing regulatory requirements and stakeholder expectations[99] Future Plans - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[5] - The company plans to continue expanding its energy storage and EPC services to capitalize on market growth opportunities[22] - The company is actively developing photovoltaic film products, with production facilities being established in Wuhu, Anhui Province, and Malaysia, expected to be operational in Q4 2022[47] - The company has expanded its EPC services to Canada, successfully securing more contracts due to increased solar demand[44] Stock Options and Securities - The company granted 4,600,000 stock options under the stock option plan, with 1,500,000 options subsequently canceled, leaving a total of 14,627,788 unexercised options as of September 30, 2022[92] - The company did not purchase, sell, or redeem any of its listed securities during the nine months ending September 30, 2022[93] - The board of directors did not recommend the payment of dividends for the nine months ending September 30, 2022, consistent with the previous year[100] - The company has adopted new accounting policies effective from January 1, 2022, but has not yet determined their significant impact on performance and financial position[20] - The company is evaluating the impact of new accounting standards issued by the Hong Kong Institute of Certified Public Accountants that are yet to be effective[20]

Financial Performance - For the six months ended June 30, 2022, the company reported revenue of HKD 350,263,000, a significant increase from HKD 115,828,000 in the same period of 2021, representing a growth of 202%[11] - The gross profit for the same period was HKD 81,496,000, compared to HKD 25,635,000 in 2021, indicating a gross margin improvement[11] - The operating profit for the six months ended June 30, 2022, was HKD 39,310,000, up from HKD 7,858,000 in the previous year, reflecting a substantial increase of 400%[11] - The net profit for the period was HKD 25,946,000, compared to HKD 5,792,000 in the prior year, marking an increase of 348%[11] - Basic earnings per share for the six months ended June 30, 2022, were HKD 3.06, up from HKD 0.82 in the same period of 2021, representing a growth of 273%[13] - The company reported a total comprehensive income of HKD (4,578,000) for the six months ended June 30, 2022, compared to HKD 9,400,000 in the previous year, indicating a decline in comprehensive income[11] Assets and Liabilities - As of June 30, 2022, total assets amounted to HKD 1,049,722 thousand, an increase from HKD 972,731 thousand as of December 31, 2021, representing a growth of approximately 7.9%[15] - Non-current assets increased to HKD 646,061 thousand from HKD 475,340 thousand, reflecting a growth of about 36%[15] - Current liabilities rose to HKD 823,217 thousand, compared to HKD 543,982 thousand, indicating an increase of approximately 51.5%[15] - The company's total equity as of June 30, 2022, was HKD 766,772 thousand, slightly down from HKD 769,334 thousand as of December 31, 2021, reflecting a decrease of about 0.2%[17] Cash Flow - Cash and cash equivalents decreased to HKD 168,271 thousand from HKD 433,154 thousand, a decline of about 61%[21] - The net cash used in operating activities for the six months ended June 30, 2022, was HKD (236,261) thousand, compared to HKD (18,600) thousand for the same period in 2021, representing a significant increase in cash outflow[21] - Investment activities resulted in a net cash outflow of HKD (148,532) thousand, up from HKD (73,853) thousand in the previous year, indicating increased capital expenditures[21] - Financing activities generated a net cash inflow of HKD 125,441 thousand, compared to HKD 35,401 thousand in the prior year, showing a substantial increase in financing activities[21] Revenue Segments - Revenue from the energy storage business was HKD 66,343,000, while the EPC services generated HKD 242,698,000 in revenue[39] - The company reported external customer revenue from China at HKD 206,854,000, a significant increase from HKD 63,626,000 in the previous year[48] - The EPC services segment contributed HKD 242.7 million, a 725.5% increase from HKD 29.4 million in the previous year, driven by an increase in contracts in China and Canada[128] Expenses - The company’s administrative expenses increased to HKD 38,725,000 for the six months ended June 30, 2022, from HKD 20,096,000 in the same period of 2021[11] - The cost of inventory for the six months ended June 30, 2022, was HKD 181,152,000, significantly higher than HKD 53,317,000 in the same period of 2021[60] - Research and development expenses for the six months ended June 30, 2022, were HKD 10,904,000, compared to HKD 4,296,000 in the same period of 2021[60] Shareholder Information - As of June 30, 2022, the total shares held by the directors and senior management in the company and its associated corporations amounted to 515,973,293 shares, representing 72.31% of the company's issued share capital[166] - The company has a shareholder agreement that grants preemptive rights to other parties in case of share sales[166] - The company has adopted a code of conduct for securities trading by directors, which is at least as stringent as the GEM Listing Rules[176] Corporate Governance - The company has adhered to the corporate governance code as per GEM listing rules, continuously reviewing standards to meet regulatory expectations[197] - The company has ensured no competitive business overlap with Xinyi Solar Holdings Limited, with no shared customers reported[196] Future Outlook - The company is preparing to capitalize on the rapid growth of the energy storage industry, driven by government policies promoting energy storage commercialization[121] - The company aims to enhance product performance, reduce production costs, and improve market development capabilities to strengthen its market competitiveness[121] - The company plans to expand its EPC service business in Canada, aiming to increase market share and contributions to overall revenue[125]

Financial Performance - For the three months ended March 31, 2022, the company reported revenue of HKD 105,984,000, a significant increase of 145% compared to HKD 43,253,000 for the same period in 2021[7] - Gross profit for the same period was HKD 28,614,000, compared to HKD 6,972,000 in the previous year, reflecting a gross margin improvement[7] - Operating profit surged to HKD 8,028,000, up from HKD 690,000 year-on-year, indicating strong operational efficiency[7] - The net profit attributable to the owners of the company was HKD 3,751,000, compared to HKD 201,000 in the prior year, marking a substantial increase[9] - The total comprehensive income for the period was HKD 8,430,000, compared to a loss of HKD 2,659,000 in the same quarter of 2021[9] - Basic earnings per share increased to HKD 0.53 from HKD 0.03, demonstrating significant growth in profitability[9] - The company's revenue for the three months ended March 31, 2022, was HKD 105,984,000, a significant increase from HKD 43,253,000 in the same period last year, representing a growth of 145.5%[18] - The net profit attributable to the company's owners for the three months ended March 31, 2022, was HKD 3,751,000, compared to HKD 201,000 in the previous year, indicating a significant increase[30] - Basic earnings per share for the period were HKD 0.53, compared to HKD 0.03 in the same period last year, reflecting a growth of 1,666.7%[30] - The gross profit margin improved from 16.1% in Q1 2021 to 27.0% in Q1 2022, primarily due to higher margins from EPC services[49] Revenue Sources - The energy storage business generated revenue of HKD 20,383,000, up from HKD 18,967,000 year-over-year, reflecting a growth of 7.4%[18] - The EPC services for photovoltaic power stations saw a substantial increase in revenue to HKD 70,962,000 from HKD 5,380,000, marking a growth of 1,116.5%[18] - The energy storage business generated revenue of HKD 20.4 million, a 7.4% increase from HKD 19.0 million in the previous year[45] - The automotive glass repair and replacement services segment saw a revenue decrease of 9.4%, attributed to the impact of COVID-19 on service demand[45] Expenses and Costs - The company reported other income of HKD 976,000, down from HKD 11,470,000 in the previous year, indicating a shift in revenue sources[7] - Administrative expenses rose to HKD 19,081,000 from HKD 9,660,000, reflecting increased operational costs[7] - The income tax expense for the period was HKD 4,101,000, compared to HKD 620,000 in the same period last year, representing a significant increase[24] - Sales and marketing costs increased from HKD 1.2 million for the three months ended March 31, 2021, to HKD 3.2 million for the three months ended March 31, 2022, primarily due to an increase in employee numbers[55] - Administrative expenses rose from HKD 9.7 million for the three months ended March 31, 2021, to HKD 19.1 million for the three months ended March 31, 2022, mainly due to increased employee numbers and higher share-based compensation[55] - The increase in research and development expenses contributed to the rise in administrative expenses, indicating a focus on innovation[55] Strategic Focus and Future Guidance - The company is focusing on market expansion and new product development to sustain growth in the upcoming quarters[8] - Future guidance indicates a continued emphasis on enhancing operational efficiency and exploring strategic partnerships for growth[8] - The company is expanding its EPC services in both China and Canada, indicating a strategic focus on international markets[40] Shareholding and Corporate Governance - The company’s total issued share capital held by directors and senior management includes 40,864,638 shares (5.73%) held by Datuk Diong Ching Shih through Copark Investment Limited[58] - The company’s total issued share capital held by directors and senior management includes 510,889,293 shares (71.61%) held collectively by the concert party[58] - The company has adopted a code of conduct for securities transactions by directors, which is at least as stringent as the GEM Listing Rules[71] - The company’s shareholding structure includes significant stakes held by directors, indicating strong insider confidence[58] - The company has adhered to the corporate governance code as per GEM listing rules for the three months ending March 31, 2022[88] Audit and Compliance - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited condensed consolidated financial information for the three months ending March 31, 2022[93] - The company has not yet applied new accounting standards issued by the Hong Kong Institute of Certified Public Accountants that are not yet effective, and is currently assessing their potential impact[17] - The company did not declare any dividends for the three months ended March 31, 2022, consistent with the previous year[28] - The board of directors did not recommend any dividend for the three months ending March 31, 2022, consistent with the previous year[89] Stock Options and Securities - The company has a total of 12,815,825 stock options that remain unexercised as of March 31, 2022[84] - No stock options were granted under the plan during the three months ended March 31, 2022[84] - The company did not purchase, sell, or redeem any of its listed securities during the three months ended March 31, 2022[86] - The company ensures no competitive business exists with Xinyi Solar Holdings Limited, which is controlled by some of the same directors and major shareholders[87]

Financial Performance - The company recorded a revenue growth of 132.1%, increasing from HKD 218.1 million in 2020 to HKD 506.2 million in 2021[12]. - Profit attributable to the owners of the company rose by 214.4%, from HKD 19.9 million in 2020 to HKD 62.6 million in 2021, primarily due to increased revenue and gross profit from EPC services[12]. - The group recorded a profit before tax of HKD 87.0 million for the year ended December 31, 2021, compared to HKD 24.2 million in 2020[41]. - Profit attributable to owners increased by 214.4% from HKD 19.9 million in 2020 to HKD 62.6 million in 2021[42]. - The overall gross profit margin improved from 23.3% in 2020 to 24.9% in 2021, primarily due to higher margins from EPC services[33]. - The energy storage segment contributed HKD 101.1 million (20.0% of total revenue) in 2021, up from HKD 94.5 million (43.3%) in 2020, marking a 7.0% increase[28]. - EPC services generated HKD 309.7 million (61.2% of total revenue) in 2021, a dramatic increase of 690.1% from HKD 39.2 million (18.0%) in 2020[28]. - Revenue from the Canadian market skyrocketed by 8,846.7%, increasing from HKD 1.5 million in 2020 to HKD 134.2 million in 2021[29]. - As of December 31, 2021, the group had a distributable reserve of HKD 528.8 million, an increase from HKD 300.7 million as of December 31, 2020[128]. Business Expansion and Development - The company has expanded its lithium battery production capacity with a new facility in Jiangsu Province, which is expected to enhance competitiveness and meet the growing demand in the energy storage industry[14]. - The company established subsidiaries in Shenzhen and Xi'an to focus on the R&D of charging devices, inverters, and energy storage technologies, aiming to broaden its R&D scope[14]. - The company plans to develop a photovoltaic film production facility in Wuhu, Anhui Province, to capitalize on the expected increase in solar product demand[19]. - The company has established a subsidiary, Polaron Energy Corp., in Canada to provide EPC services for overseas markets[24]. - The company plans to promote the use of micro energy storage systems in residential buildings in Canada, which is expected to drive business growth[18]. - The company relocated its production facility to Zhangjiagang, Jiangsu Province, in March 2021[23]. Costs and Expenses - Sales and marketing costs increased from HKD 5.3 million in 2020 to HKD 11.9 million in 2021, primarily due to an increase in employee numbers and related sales activities[38]. - Administrative expenses rose from HKD 32.0 million in 2020 to HKD 62.0 million in 2021, mainly due to employee termination costs, increased employee numbers, and higher R&D expenses[38]. - Capital expenditures for the year amounted to HKD 172.7 million, significantly higher than HKD 70.5 million in 2020, primarily related to lithium battery production facilities in China[46]. Governance and Compliance - The company has adopted the corporate governance code as per GEM listing rules, ensuring compliance with applicable laws and regulations throughout the year[70]. - The board consists of two executive directors, two non-executive directors, and three independent non-executive directors, ensuring a diverse range of expertise[72]. - The company has a policy for board diversity, considering various factors such as age, culture, and professional experience[72]. - The company has adopted a strict code of conduct for securities trading by directors, in compliance with GEM listing rules[78]. - The company has established communication channels with shareholders and investors, including annual general meetings and timely performance announcements[99]. - The company has made arrangements to ensure no competitive business exists geographically with Xinyi Solar[174]. Risk Management - The group faces significant risks related to the supply and demand levels of battery packs, energy storage systems, and lithium battery products, which are influenced by macroeconomic factors and the capacity of other manufacturers[111]. - The group relies on a stable supply of raw materials necessary for production, which poses a risk to operational performance[112]. - The performance of the solar and EPC services is affected by government support for clean energy and overall macroeconomic conditions[113]. - The group has implemented environmental measures to comply with applicable Chinese environmental laws, including a solvent recovery rate exceeding 95% for air purification[106]. - The group has adopted a risk-based approach to ensure operations and resources adequately cover high-risk areas[92]. Shareholder Information - Major shareholders include Dr. Li Xianyi, who holds 119,786,909 shares (16.79%) and Mr. Dong Qingbo, who holds 44,059,821 shares (6.18%) in the company[167]. - The total number of stock options available for issuance as of March 2, 2022, is 40,737,313, representing approximately 5.7% of the company's issued ordinary shares[144]. - The company has a shareholding structure where major shareholders collectively control a significant portion of the issued share capital[172]. - The company has no arrangements for directors to benefit from acquiring shares or debt securities of the company[176]. Related Party Transactions - The group has complied with GEM Listing Rules regarding related party transactions, ensuring they are conducted on normal commercial terms[190]. - The group’s independent non-executive directors have reviewed the ongoing related party transactions, confirming they are conducted in the ordinary course of business and on fair and reasonable terms[190]. - The company entered into a renewed glass supply framework agreement with Xinyi Glass Group to purchase automotive glass products, with maximum payments of HKD 7.3 million, HKD 7.9 million, and HKD 8.6 million for the years ending December 31, 2022, 2023, and 2024 respectively[194].

Financial Performance - For the three months ended September 30, 2021, the company reported revenue of HKD 137,231 thousand, a significant increase from HKD 72,349 thousand in the same period of 2020, representing an increase of 90%[4] - The gross profit for the nine months ended September 30, 2021, was HKD 59,437 thousand, compared to HKD 33,018 thousand for the same period in 2020, reflecting an increase of 80%[4] - The operating profit for the three months ended September 30, 2021, was HKD 14,130 thousand, up from HKD 7,589 thousand in the same period of 2020, marking an increase of 86%[4] - The net profit attributable to owners of the company for the nine months ended September 30, 2021, was HKD 14,025 thousand, compared to HKD 13,355 thousand in the same period of 2020, showing a growth of 5%[6] - The total comprehensive income for the three months ended September 30, 2021, was HKD 10,802 thousand, a decrease from HKD 21,699 thousand in the same period of 2020, indicating a decline of 50%[6] - The total revenue for the nine months ended September 30, 2021, was HKD 253,059 thousand, compared to HKD 153,258 thousand in the same period of 2020, representing an increase of 65%[4] - The group’s revenue for the nine months ended September 30, 2021, was HKD 253,059 thousand, an increase of 65.3% compared to HKD 153,258 thousand for the same period in 2020[14] - The energy storage business contributed HKD 72.6 million (28.7% of total revenue), while EPC services generated HKD 104.8 million (41.4% of total revenue), marking a 248.2% increase from HKD 30.1 million in 2020[37] - The gross profit margin improved from 21.5% for the nine months ended September 30, 2020, to 23.5% for the same period in 2021, primarily due to the higher margin from EPC services at 27.7%[41] - The company reported a profit attributable to owners of HKD 14.0 million for the nine months ended September 30, 2021, compared to HKD 13.4 million in 2020, indicating improved profitability[47] Expenses and Income - The company incurred selling and marketing expenses of HKD 4,257 thousand for the three months ended September 30, 2021, compared to HKD 1,715 thousand in the same period of 2020, an increase of 148%[4] - The administrative expenses for the nine months ended September 30, 2021, were HKD 37,773 thousand, up from HKD 22,765 thousand in the same period of 2020, reflecting an increase of 66%[4] - The company reported other income of HKD 2,451 thousand for the three months ended September 30, 2021, compared to HKD 1,946 thousand in the same period of 2020, indicating an increase of 26%[4] - The group recognized other income of HKD 13,921 thousand for the nine months ended September 30, 2021, compared to HKD 3,507 thousand for the same period in 2020, indicating a significant increase[15] - The group reported a total tax expense of HKD 6,683 thousand for the nine months ended September 30, 2021, compared to HKD 463 thousand for the same period in 2020, showing a substantial increase[17] Shareholder Information - As of September 30, 2021, the company had a total of 461,393,649 shares held by major shareholders, representing approximately 71.15% of the issued share capital[60] - The company reported that Dan Sri Dato' Dong Qing Shi holds 37,039,885 shares, accounting for 5.71% of the issued share capital[49] - The company’s major shareholder, Dr. Li Xian Yi, has a total of 108,781,432 shares, which is approximately 16.78% of the issued share capital[60] - The company has a significant concentration of ownership, with the top three shareholders holding a combined total of 461,393,649 shares, or 71.15% of the issued share capital[60] - The company has a total of 132,000 unexercised share options held by Li Bi Rong, representing approximately 0.02% of the issued share capital[54] - The company has a total of 1,044,000 unexercised share options held by Cha Xue Song, representing approximately 0.16% of the issued share capital[54] - The company has a total of 4,436,100 shares held by Dan Sri Dato' Dong Qing Shi in personal capacity, representing approximately 0.68% of the issued share capital[60] - The company’s major shareholders have agreed to grant each other preemptive rights in the event of a sale of shares allocated under the company’s distribution plan[52] - The company has not received any notifications of interests in shares from individuals other than directors or senior management as of September 30, 2021[67] Corporate Governance - The company has adhered to the corporate governance code as per GEM listing rules, ensuring high standards of governance and transparency[72] - The Audit Committee has been established in compliance with GEM listing rules, consisting of three independent non-executive directors[76] - The unaudited consolidated financial information for the nine months ending September 30, 2021, has been reviewed by the Audit Committee[76] - The report is dated November 8, 2021, indicating the company's ongoing commitment to corporate governance and financial oversight[76] Operational Developments - The company relocated its production facility from Wuhu, Anhui Province to Zhangjiagang, Jiangsu Province in the first half of 2021, which is expected to enhance operational efficiency[30] - The company established a subsidiary, Polaron Energy Corp., in Canada to provide EPC services, holding a 68% stake, which supports overseas market development[31] - The company maintains a non-competitive arrangement with Xinyi Solar Holdings Limited, ensuring no overlapping customers and geographic competition[71] Dividend Policy - The company did not recommend any dividend for the nine months ended September 30, 2021, consistent with the previous year[21] - The board of directors does not recommend the payment of dividends for the nine months ended September 30, 2021, consistent with the previous year[75]

XINYI ELECTRIC STORAGE HOLDINGS LIMITED 信義儲電控股有限公司 (於開曼群島註冊成立之有限公司) 股份代號 : 08328 0 中期報告 CW mi 昌 乡 mit CTCT 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM乃為較其他於聯交所上市的公司帶有較高投資風險的中小型公司提供一個上市市場。有 意投資者應了解投資於該等公司的潛在風險，並應經過審慎周詳考慮後方作出投資決定。 由於GEM上市公司為中小型公司，於GEM買賣的證券可能會較於聯交所主板買賣的證券承 受較高的市場波動風險，同時無法保證於 GEM買賣的證券會有高流通市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整性亦不發 表任何聲明，並明確表示概不就因本報告全部或任何部分內容而產生或因倚賴該等內容而引 致的任何損失承擔任何責任。 | --- | |--------------------------------------------------------------------------------------------| | | | 本報告的資料乃遵照聯交所 GE ...