江山控股(00295) - 2024 - 中期财报

Company Information Corporate Governance and Contact Information This section provides detailed company information for Kong Sun Holdings Limited, including lists of directors, committee roles, registered office, share registrars, company secretary, auditors, legal advisors, stock code, contact details, and changes in independent non-executive directors and committee members - Independent Non-Executive Director Mr. Tang Jian was appointed on June 11, 2024, while Mr. Xu Xiang resigned[14] - Audit Committee, Nomination Committee, and Remuneration Committee members were also adjusted due to director changes[14] - The company's stock code is 295, and its official website is www.kongsun.com[24](index=24&type=chunk)[27] Chairman's Statement Operating Review and Outlook for H1 2024 The Chairman's Statement outlines Kong Sun Holdings' operating performance and strategic direction for H1 2024, focusing on stable solar power operations, asset restructuring, and diversification into technology finance and healthcare - The Chinese government continues to issue policies supporting the solar power industry, such as the "2024-2025 Energy Saving and Carbon Reduction Action Plan"[30] - As of June 30, 2024, the Group held 11 grid-connected solar power plants in China with a total installed capacity of 290 MW[30] - Total power generation in H1 2024 was approximately 164,173 MWh[30] H1 2024 Key Financial Indicators | Indicator | Amount (RMB) | | :--- | :--- | | Revenue | 229 million yuan | | Gross Profit | 119 million yuan | - The Group will continue to develop its clean energy and technology finance businesses, and accelerate diversified development in the healthcare sector[30] Financial Highlights Overview of Key Financial Data This section provides an unaudited financial summary for Kong Sun Holdings for the six months ended June 30, 2024, compared to the same period in 2023 and December 31, 2023, showing increased loss per share, decreased total assets and net assets, but increased gross profit H1 2024 vs H1 2023 Condensed Consolidated Statement of Profit or Loss Summary | Indicator | For the six months ended June 30, 2024 (RMB thousand) | For the six months ended June 30, 2023 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 229,087 | 232,658 | | Gross Profit | 118,550 | 96,864 | | Loss for the period | (182,664) | (4,180) | | Loss per share (basic and diluted) | (1.09) RMB cents | (0.03) RMB cents | Financial Position Summary as at June 30, 2024 vs December 31, 2023 | Indicator | As at June 30, 2024 (RMB thousand) | As at December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | Total Non-current Assets | 2,444,599 | 2,465,468 | | Total Current Assets | 2,915,402 | 3,257,037 | | Total Assets | 5,360,001 | 5,722,505 | | Total Liabilities | 2,604,543 | 2,792,467 | | Net Assets | 2,755,458 | 2,930,038 | Management Discussion and Analysis Business Review This section reviews Kong Sun Holdings' diversified businesses, including investment and operation of solar power plants, financial services, digital smart traditional Chinese medicine health management services, and solar power plant operation and maintenance services - The company's main businesses include investment and operation of solar power plants, financial services and asset management, digital smart traditional Chinese medicine health management services, and solar power plant operation and maintenance services[33] Distribution of Completed Solar Power Plants | Chinese Province | Number of Solar Power Plants | Installed Capacity of Solar Power Plants | | :--- | :--- | :--- | | Shaanxi | 3 | 90.0 MW | | Inner Mongolia | 1 | 10.0 MW | | Shanxi | 1 | 20.0 MW | | Anhui | 5 | 140.0 MW | | Hubei | 1 | 30.0 MW | | Total | 11 | 290 MW | - Revenue from financial services increased by approximately 95.8% year-on-year to RMB 55,837,000[35] - Health management services generated revenue of approximately RMB 5,349,000 in H1 2024, contributing to new business[35] Operating Performance This section analyzes the Group's operating performance for H1 2024, noting a slight decrease in total revenue due to solar power plant disposals, but significant growth in financial services and health management revenue, alongside improved gross profit and margin - Total revenue decreased by approximately 1.5% year-on-year to RMB 229,087,000, primarily due to lower electricity sales revenue from solar power plant disposals[36] H1 2024 Revenue Changes by Business Segment | Revenue Source | H1 2024 (RMB thousand) | H1 2023 (RMB thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Electricity Sales | 130,030 | 153,548 | -15.3% | | Solar Power Plant Operation and Maintenance Services | 37,871 | 50,590 | -25.1% | | Financial Services | 55,837 | 28,520 | +95.8% | | Health Management Services | 5,349 | - | New | | Total Revenue | 229,087 | 232,658 | -1.5% | - Gross profit increased by approximately 22.4% year-on-year to RMB 118,550,000, with gross margin rising from 41.6% to 51.7%, mainly driven by high-margin financial services[43] - Other net losses amounted to approximately RMB 2,687,000, primarily due to reduced dividend and rental income and increased solar power plant rectification expenses[44] - Administrative expenses increased by approximately 83.3% year-on-year to RMB 177,210,000, mainly due to increased employee benefits and R&D expenses[45] - Net loss on disposal of subsidiaries was approximately RMB 3,307,000, and net impairment loss on trade and other receivables was approximately RMB 20,543,000[46][48] - Finance costs decreased by approximately 27.4% year-on-year to RMB 58,039,000, mainly due to a reduction in the average total loans and borrowings[52] Financial Position This section details the Group's financial position, including changes in various assets and liabilities, noting a significant decrease in cash and cash equivalents, an increase in net debt ratio, and information on capital expenditure, loans, corporate bonds, foreign exchange risk, asset pledges, and contingent liabilities Changes in Key Balance Sheet Items | Item | As at June 30, 2024 (RMB thousand) | As at December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | Net book value of solar power plants | 906,236 | 939,706 | | Net book value of interests in associates | 225,722 | 218,533 | | Net book value of interests in joint ventures | 175,674 | 209,748 | | Financial assets measured at fair value through other comprehensive income | 575,333 | 595,942 | | Trade and other receivables | 1,806,438 | 1,925,878 | | Cash and cash equivalents | 69,708 | 254,778 | | Total loans and borrowings | 1,532,263 | 1,659,216 | | Trade and other payables | 626,997 | 668,397 | - The net debt ratio (or gearing ratio) increased from 0.48 as at December 31, 2023, to 0.54 as at June 30, 2024[63] - As at June 30, 2024, approximately RMB 1,013,352,000 of loans and borrowings were repayable within one year[65] - The Group has pledged solar power plants, trade receivables, and unlisted equity investments as collateral for bank loans and other borrowings, totaling approximately RMB 1,240,189,000[69][136] - Contingent liabilities exist regarding compliance issues with solar power plant project equity transfers, potentially leading to fines or other adverse consequences[70] Employees and Remuneration Policy This section discloses the Group's employee numbers and remuneration policy, noting a decrease in employees to 737 as of June 30, 2024, an increase in total employee benefits expenses, and a policy aimed at attracting and retaining talent through competitive compensation and development resources - As at June 30, 2024, the Group had approximately 737 employees in Hong Kong and China, a decrease from 1,375 as at December 31, 2023[72] - Total employee benefits expenses for the six months ended June 30, 2024, were approximately RMB 119,214,000, an increase from RMB 101,807,000 in the same period last year[72] - The Group's remuneration policy aims to provide basic salaries, short-term bonuses, and long-term incentives, along with sufficient training and development resources[72] Significant Investments, Acquisitions, and Disposals This section reports a significant disposal completed by the Group in H1 2024, involving the sale of a 60% equity interest in Shaanxi Yirun New Energy Technology Co., Ltd. for RMB 4,200,000, with no other major investment, acquisition, or disposal activities during the period - The Group disposed of a 60% equity interest in Shaanxi Yirun New Energy Technology Co., Ltd. for a total consideration of RMB 4,200,000, completed on April 17, 2024[73] - This disposal involved the solar power plant operation and maintenance services business[37][73] - Other than this, the Group had no other significant investments, acquisitions, or disposals during the period[73] Future Outlook This section outlines the Group's future development strategy, anticipating continued growth in the solar power industry due to falling costs and policy support, and focusing on optimizing solar power plant operations, developing green and inclusive finance, and accelerating diversification into healthcare to enhance business structure and shareholder value - Solar power generation cost competitiveness is increasing, and global demand is expected to continue growing[75] - China's newly installed solar power capacity increased by 51.6% year-on-year, with cumulative installed capacity reaching 710 GW[75] - The Group's future strategy includes advancing operating solar power plants, optimizing asset allocation, developing green and inclusive finance businesses, and accelerating diversified development in the healthcare sector[75] Other Information Disclosure Directors' Rights to Acquire Shares or Debentures This section discloses that during the review period, no directors, their spouses, or minor children were granted or exercised any rights to acquire shares or debentures of the company, nor did the company or its subsidiaries participate in any arrangements enabling directors to obtain such rights - During the review period, no directors or their spouses or minor children were granted or exercised any rights to acquire shares or debentures of the Company[75] Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares, and Debentures This section lists the interests of the company's directors and chief executive in the company's shares and underlying shares as at June 30, 2024, noting Executive Director Mr. Xian He's beneficial ownership and deemed spousal interest Directors' Interests in the Company's Underlying Shares | Director Name | Nature of Interest | Number of Shares Held/Interested | Approximate Percentage of Equity | | :--- | :--- | :--- | :--- | | Xian He | Beneficial Owner | 1,650,000 (L) | 0.01% | | | Spouse's Interest | 5,475,000 (L) | 0.04% | - Mr. Xian He is deemed to have an interest in 5,475,000 shares held by his spouse, Ms. He Xiang[76] Major Shareholders This section discloses major shareholders holding interests in the company's shares or underlying shares, other than directors and chief executives, as at June 30, 2024, highlighting Miao Yu's deemed interest through Prospect Ace Limited and Xiang Jun's significant shareholding Major Shareholder Holdings | Name/Company Name | Nature of Interest | Number of Shares or Underlying Shares Held | Percentage of Equity | | :--- | :--- | :--- | :--- | | Miao Yu | Deemed interest in controlled corporation | 2,735,749,600 (L) | 18.28% | | Prospect Ace Limited | Beneficial Owner | 2,735,749,600 (L) | 18.28% | | Xiang Jun | Beneficial Owner | 756,831,000 (L) | 5.06% | - Miao Yu owns the entire equity interest in Prospect Ace Limited and is therefore deemed to have an interest in the shares held by it[78] Compliance with Corporate Governance Code This section states that the company has complied with the Corporate Governance Code during the review period, with one deviation: the roles of Chairman and Chief Executive are not separated, and the Board will regularly review the management structure - The Company has complied with the applicable code provisions of the Corporate Governance Code throughout the six months ended June 30, 2024[80] - One deviation exists: the roles of Chairman and Chief Executive are not separated, with the Executive Director performing the Chief Executive's duties[81] Interim Dividend This section indicates that the Board does not recommend paying any interim dividend for the six months ended June 30, 2024, consistent with the prior year - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2024[82] Events After Reporting Period This section discloses a significant event after the reporting date: on August 15, 2024, a wholly-owned subsidiary agreed to subscribe for and acquire a total 30% equity interest in Beijing Sibo Huiyi Technology Co., Ltd. for RMB 50,000,000, which will not result in the target company becoming a subsidiary - On August 15, 2024, a subsidiary of the Company agreed to subscribe for a 20% equity interest in Beijing Sibo Huiyi Technology Co., Ltd. for RMB 36,000,000 and acquire a 10% equity interest for RMB 14,000,000[83] - Upon completion, the Company will hold a 30% equity interest in the target company, but it will not become a subsidiary of the Company[83] Compliance with Model Code for Securities Transactions by Directors This section confirms that the company has adopted the Model Code for Securities Transactions by Directors and that all directors have complied with its required standards during the six months ended June 30, 2024 - The Company has adopted the Model Code as set out in Appendix C3 to the Listing Rules[83] - All Directors have complied with the required standards of the Model Code throughout the six months ended June 30, 2024[83] Purchase, Sale or Redemption of the Company's Listed Securities This section discloses that neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the six months ended June 30, 2024 - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2024[84] Changes in Directors' Information This section confirms that no information regarding directors required to be disclosed under Listing Rules 13.51(2) and 13.51B(1) was applicable for the six months ended June 30, 2024 - No information regarding directors required to be disclosed under the Listing Rules was applicable for the six months ended June 30, 2024[85] Audit Committee This section states that the Audit Committee has reviewed the Group's unaudited condensed consolidated interim financial statements for the six months ended June 30, 2024, confirming no disagreements and discussing audit, internal control, and financial reporting matters - The Audit Committee has reviewed the Group's unaudited condensed consolidated interim financial statements for the six months ended June 30, 2024, with no disagreements[86] - The Audit Committee has reviewed and confirmed the accounting principles and practices adopted by the Group and discussed audit, internal control, and financial reporting matters[86] Condensed Consolidated Statement of Profit or Loss H1 2024 Profit or Loss Performance This condensed consolidated statement of profit or loss shows that for the six months ended June 30, 2024, Kong Sun Holdings recorded a significant loss, primarily due to substantially increased administrative expenses, a shift from other gains to losses, losses on disposal of subsidiaries, and impairment losses Key Data from Condensed Consolidated Statement of Profit or Loss | Indicator | For the six months ended June 30, 2024 (RMB thousand) | For the six months ended June 30, 2023 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 229,087 | 232,658 | | Gross Profit | 118,550 | 96,864 | | Other (losses)/gains, net | (2,687) | 41,915 | | Administrative expenses | (177,210) | (96,667) | | Net loss on disposal of subsidiaries | (3,307) | – | | Impairment loss on disposal group classified as held for sale | (1,443) | – | | Net impairment loss on trade and other receivables | (20,543) | (7,390) | | Finance costs | (58,039) | (79,991) | | Loss for the period | (182,664) | (4,180) | | Loss for the period attributable to owners of the Company | (163,727) | (5,209) | | Loss per share (basic and diluted) | (1.09) RMB cents | (0.03) RMB cents | Condensed Consolidated Statement of Comprehensive Income H1 2024 Comprehensive Income Performance This condensed consolidated statement of comprehensive income shows that for the six months ended June 30, 2024, Kong Sun Holdings recorded a loss for the period of RMB 182,664,000, with other comprehensive income primarily including net fair value changes (losses) on financial assets measured at fair value through other comprehensive income and exchange differences (gains) on translating foreign operations, resulting in a total comprehensive loss of RMB (155,643,000) for the period Key Data from Condensed Consolidated Statement of Comprehensive Income | Indicator | For the six months ended June 30, 2024 (RMB thousand) | For the six months ended June 30, 2023 (RMB thousand) | | :--- | :--- | :--- | | Loss for the period | (182,664) | (4,180) | | Net fair value change of financial assets measured at fair value through other comprehensive income | (20,609) | (18,216) | | Exchange differences on translating financial statements of overseas operations | 28,693 | 22,878 | | Other comprehensive income for the period (net of tax) | 8,084 | 4,662 | | Total comprehensive income for the period | (155,643) | (547) | | Total comprehensive income for the period attributable to owners of the Company | (136,706) | (1,576) | Condensed Consolidated Statement of Financial Position Overview of Financial Position as at June 30, 2024 This condensed consolidated statement of financial position shows that as at June 30, 2024, Kong Sun Holdings' total assets and net assets decreased compared to December 31, 2023, with non-current assets remaining relatively stable, while current assets decreased primarily due to reductions in trade and other receivables and cash and cash equivalents Key Data from Condensed Consolidated Statement of Financial Position | Indicator | As at June 30, 2024 (RMB thousand) | As at December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | Total Non-current Assets | 2,444,599 | 2,465,468 | | Total Current Assets | 2,915,402 | 3,257,037 | | Total Assets | 5,360,001 | 5,722,505 | | Total Non-current Liabilities | 615,435 | 764,349 | | Total Current Liabilities | 1,989,108 | 2,028,118 | | Total Liabilities | 2,604,543 | 2,792,467 | | Net Assets | 2,755,458 | 2,930,038 | - Net book value of solar power plants decreased from RMB 943,096,000 to RMB 909,626,000[88] - Cash and cash equivalents decreased from RMB 254,778,000 to RMB 69,708,000[88] - Assets classified as disposal group held for sale increased to RMB 1,290,951,000[88] Condensed Consolidated Statement of Changes in Equity H1 2024 Equity Movement Analysis This condensed consolidated statement of changes in equity shows that for the six months ended June 30, 2024, Kong Sun Holdings' total equity decreased due to the loss attributable to owners of the Company and net fair value changes of financial assets measured at fair value through other comprehensive income, partially offset by exchange differences on translating foreign operations Key Data from Condensed Consolidated Statement of Changes in Equity | Indicator | As at June 30, 2024 (RMB thousand) | As at June 30, 2023 (RMB thousand) | | :--- | :--- | :--- | | Share Capital | 6,486,588 | 6,486,588 | | Equity attributable to owners of the Company | 2,686,107 | 3,345,519 | | Non-controlling interests | 69,351 | 89,079 | | Total Equity | 2,755,458 | 3,434,598 | | Loss for the period | (163,727) | (5,209) | | Net fair value change of financial assets measured at fair value through other comprehensive income | (20,609) | (18,216) | | Exchange differences on translating financial statements of overseas operations | 28,693 | 22,878 | - Equity attributable to owners of the Company decreased from RMB 3,346,066 thousand as at January 1, 2023, to RMB 2,686,107 thousand as at June 30, 2024[90] Condensed Consolidated Statement of Cash Flows H1 2024 Cash Flow Analysis This condensed consolidated statement of cash flows shows that for the six months ended June 30, 2024, Kong Sun Holdings experienced net cash outflows from operating, investing, and financing activities, leading to a significant reduction in cash and cash equivalents Key Data from Condensed Consolidated Statement of Cash Flows | Indicator | For the six months ended June 30, 2024 (RMB thousand) | For the six months ended June 30, 2023 (RMB thousand) | | :--- | :--- | :--- | | Net cash used in operating activities | (15,657) | (225,580) | | Net cash (used in)/generated from investing activities | (2,084) | 91,504 | | Net cash used in financing activities | (196,158) | (9,907) | | Net decrease in cash and cash equivalents | (213,899) | (143,983) | | Cash and cash equivalents at June 30 | 71,795 | 181,530 | - Net cash used in operating activities significantly improved, decreasing from RMB (225,580) thousand in H1 2023 to RMB (15,657) thousand in H1 2024[91] - Net cash used in financing activities substantially increased from RMB (9,907) thousand in H1 2023 to RMB (196,158) thousand in H1 2024, primarily due to repayment of loans and borrowings[92] Notes to the Condensed Consolidated Interim Financial Statements Basis of Preparation This section outlines the basis of preparation for the condensed consolidated interim financial information, which complies with the Listing Rules of The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA - The condensed consolidated interim financial information is prepared in accordance with the applicable disclosure provisions of the Listing Rules of The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 "Interim Financial Reporting"[93] - These unaudited condensed consolidated interim financial statements have been reviewed by the Company's Audit Committee and approved for issue by the Board of Directors on August 29, 2024[94] Significant Accounting Policies This section describes the significant accounting policies used in preparing the unaudited condensed consolidated interim financial statements, which are prepared under the historical cost convention and incorporate new and revised HKFRSs effective for annual periods beginning on or after January 1, 2024, with no material impact on the reported amounts - The unaudited condensed consolidated interim financial statements are prepared under the historical cost convention, except for certain financial assets measured at fair value through other comprehensive income[95] - New and revised HKFRSs effective for annual periods beginning on or after January 1, 2024, have been adopted but have no material impact on the amounts reported and/or disclosures contained in the statements[95] Revenue and Segment Information This section details the Group's revenue composition and segment information, with revenue primarily derived from electricity sales, interest income from financial services, health management services, and solar power plant operation and maintenance services, and China being the Group's primary geographical market H1 2024 Revenue Categories | Revenue Category | For the six months ended June 30, 2024 (RMB thousand) | | :--- | :--- | | Electricity Sales | 130,030 | | Interest income from providing financial services | 55,837 | | Health management services | 5,349 | | Providing solar power plant operation and maintenance services | 37,871 | | Total | 229,087 | - Electricity sales revenue includes renewable energy subsidies of approximately RMB 84,889,000[98] H1 2024 Reportable Segment Revenue and Profit | Segment | Revenue (RMB thousand) | Profit (Adjusted EBITDA) (RMB thousand) | | :--- | :--- | :--- | | Solar Power Plants | 167,901 | 81,054 | | Financial Services | 55,837 | 22,368 | | Health Management Services | 5,349 | (75,615) | | Trading of liquefied natural gas | – | (14) | | Total | 229,087 | 27,793 | - China is the Group's primary geographical market, and no geographical segment information for significant operations outside China is presented[99][107] Other (Losses)/Gains, Net This section details the other (losses)/gains, net, for the six months ended June 30, 2024, showing a net loss of RMB 2,687,000, a stark contrast to the net gain of RMB 41,915,000 in the prior year, primarily due to reduced dividend and property rental income and significantly increased solar power plant rectification expenses Composition of Other (Losses)/Gains, Net | Item | For the six months ended June 30, 2024 (RMB thousand) | For the six months ended June 30, 2023 (RMB thousand) | | :--- | :--- | :--- | | Interest income | 6,788 | 6,700 | | Net exchange gains | 1,903 | 7,952 | | Solar power plant rectification expenses | (10,932) | (1,039) | | Dividend income | – | 20,250 | | Property rental income | – | 5,910 | | Others | (446) | 2,142 | | Total | (2,687) | 41,915 | - Other (losses)/gains, net, shifted from a gain in H1 2023 to a loss in H1 2024, mainly impacted by reduced dividend and rental income and increased rectification expenses[109] Finance Costs This section lists the components of finance costs for the six months ended June 30, 2024, showing a total of RMB 58,039,000, a decrease from RMB 79,991,000 in the prior year, primarily due to lower interest on loans and borrowings Composition of Finance Costs | Item | For the six months ended June 30, 2024 (RMB thousand) | For the six months ended June 30, 2023 (RMB thousand) | | :--- | :--- | :--- | | Interest on loans and borrowings | 51,465 | 75,420 | | Estimated interest on corporate bonds | 367 | 341 | | Interest on lease liabilities | 6,207 | 4,230 | | Total | 58,039 | 79,991 | - Finance costs decreased by approximately 27.4% year-on-year, primarily due to reduced interest on loans and borrowings[110] (Loss)/Profit Before Income Tax This section details the determination of the Group's (loss)/profit before income tax, primarily by deducting employee benefits expenses and other items, noting an increase in employee benefits expenses and a decrease in depreciation expenses for solar power plants for the six months ended June 30, 2024 Employee Benefits Expenses | Item | For the six months ended June 30, 2024 (RMB thousand) | For the six months ended June 30, 2023 (RMB thousand) | | :--- | :--- | :--- | | Salaries, wages and other benefits | 104,383 | 89,599 | | Contributions to defined contribution retirement plans | 14,831 | 12,208 | | Total | 119,214 | 101,807 | Other Items of Expense | Item | For the six months ended June 30, 2024 (RMB thousand) | For the six months ended June 30, 2023 (RMB thousand) | | :--- | :--- | :--- | | Amortisation of right-of-use assets | 14,785 | 10,838 | | Auditor's remuneration | 289 | 810 | | Depreciation of property, plant and equipment | 2,069 | 1,115 | | Depreciation of solar power plants | 35,339 | 51,464 | | Operating lease expenses relating to short-term leases | 715 | 613 | Income Tax Expense This section lists the income tax expense in the condensed consolidated statement of profit or loss, which amounted to RMB 4,646,000 for the six months ended June 30, 2024, primarily comprising PRC corporate income tax, with certain solar power plant projects enjoying tax incentives Composition of Income Tax Expense | Item | For the six months ended June 30, 2024 (RMB thousand) | For the six months ended June 30, 2023 (RMB thousand) | | :--- | :--- | :--- | | Current tax — PRC corporate income tax | 5,948 | 6,477 | | Deferred tax | (1,302) | (209) | | Total | 4,646 | 6,268 | - The Group's PRC entities are subject to corporate income tax at a statutory rate of 25%[114] - Certain solar power plant projects enjoy a three-year full tax exemption followed by a 50% tax reduction for the subsequent three years[114] Loss Per Share Attributable to Owners of the Company for the Period This section explains the calculation of basic and diluted loss per share attributable to owners of the Company for the six months ended June 30, 2024, noting a significant increase in loss per share due to higher losses for the period, with diluted loss per share being the same as basic loss per share due to no potentially dilutive ordinary shares - Basic and diluted loss per share for the six months ended June 30, 2024, was RMB (1.09) cents, a significant increase from RMB (0.03) cents in the prior year[114] - Loss per share is calculated based on the loss for the period attributable to owners of the Company of approximately RMB 163,727,000 and the weighted average number of ordinary shares in issue of approximately 14,964,442,000 shares[114] Dividends This section discloses that no dividends were paid or proposed for the six months ended June 30, 2024, and none have been proposed since the end of the reporting period up to the date of this interim report, consistent with the prior year - No dividends were paid or proposed for the six months ended June 30, 2024[115] Solar Power Plants This section details the Group's investments in solar power plants, noting an increase of RMB 64,000 for the six months ended June 30, 2024, and that approximately RMB 725,476,000 of solar power plants have been pledged as collateral for the Group's loans and borrowings - For the six months ended June 30, 2024, the Group increased its investment in solar power plants by approximately RMB 64,000[116] - As at June 30, 2024, certain solar power plants with a carrying value of approximately RMB 725,476,000 were pledged as collateral for the Group's loans and borrowings[116] Interests in Associates This section lists details of the Group's interests in associates as at June 30, 2024, which are primarily engaged in finance leasing, factoring, solar power plant O&M, LNG trading platform development, consulting, and solar power generation and development, with the Group exercising significant influence and accounting for them using the equity method Major Associates | Name | Ownership Interest/Voting Rights Percentage (June 30, 2024) | Principal Business | | :--- | :--- | :--- | | Jiangshan Baoyuan International Financial Leasing Co., Ltd. | 37.6% | Finance leasing and factoring business | | Shaanxi Yirun New Energy Technology Co., Ltd. | 40% | Providing solar power plant operation and maintenance services | | Dongtai Lanjing Photovoltaic Co., Ltd. | 36.79% | Solar power generation and development | | Guangzhou Woodpecker Digital Technology Co., Ltd. | 40% | Consulting services | - The Group has the power to participate in the financial and operating policy decisions of its associates and accounts for them using the equity method[118] Interests in Joint Ventures This section lists details of the Group's interests in joint ventures as at June 30, 2024, which are primarily engaged in investment holding, investment management, energy management contracts, and technical services, with the Group having joint control with other venturers and accounting for them using the equity method Major Joint Ventures | Joint Venture Name | Ownership Interest Percentage (June 30, 2024) | Principal Business | | :--- | :--- | :--- | | Beijing Hongfeng New Energy Partnership (Limited Partnership) | 90.09% | Investment holding | | Xinjiang Jiangshan Yongheng New Energy Management Co., Ltd. | 49% | Energy management contracts | | Beijing Baishukang Technology Co., Ltd. | 65% | Technical services | - The Group has joint control with its joint venturers and accounts for them using the equity method in the condensed consolidated financial statements[119] Financial Assets Measured at Fair Value Through Other Comprehensive Income This section details the Group's financial assets measured at fair value through other comprehensive income as at June 30, 2024, primarily comprising unlisted partnership investments and unlisted equity investments totaling RMB 575,333,000, a decrease from 2023 year-end due to fair value losses, with some unlisted equity investments pledged as loan collateral Composition of Financial Assets Measured at Fair Value Through Other Comprehensive Income | Item | As at June 30, 2024 (RMB thousand) | As at December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | Unlisted partnership investments | 302,463 | 303,156 | | Unlisted equity investments | 272,870 | 292,786 | | Total | 575,333 | 595,942 | - A fair value loss of approximately RMB 20,609,000 was recognized during the period[57][120] - The Group holds shares in Hohhot Jingu Bank with a fair value of approximately RMB 152,687,000, recognizing a fair value loss of approximately RMB 10,556,000[121] - The Group holds shares in Jinzhou Bank with a fair value of approximately RMB 120,183,000, recognizing a fair value loss of approximately RMB 9,360,000, with these shares pledged as loan collateral[122] Trade and Other Receivables This section provides a detailed analysis of trade and other receivables, noting a decrease in total receivables but a significant increase in impairment provisions as at June 30, 2024, with a large portion comprising renewable energy subsidies receivable and some trade receivables pledged as loan collateral Composition of Trade and Other Receivables | Item | As at June 30, 2024 (RMB thousand) | As at December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | Net trade receivables | 946,586 | 1,140,860 | | Other receivables, prepayments and deposits, net | 859,852 | 785,018 | | Total | 1,806,438 | 1,925,878 | - Net impairment provision for trade and other receivables increased from RMB 7,390,000 in H1 2023 to RMB 20,543,000 in H1 2024[48][127] - Unrecovered renewable energy subsidies amounted to approximately RMB 486,531,000[128] - Trade receivables from electricity sales of approximately RMB 394,530,000 were pledged as loan collateral[128] Cash and Cash Equivalents This section states that as at June 30, 2024, the Group's cash and cash equivalents primarily consist of RMB-denominated bank balances held in PRC banks, noting a significant decrease in total cash and cash equivalents and that RMB is not freely convertible - As at June 30, 2024, the Group's cash and cash equivalents were approximately RMB 69,708,000, a significant decrease from RMB 254,778,000 as at December 31, 2023[129] - Bank balances of approximately RMB 67,219,000 are denominated in RMB and deposited with banks in the PRC[129] - RMB is not freely convertible, but the Group can convert RMB into foreign currencies through authorized banks[129] Disposal Group Classified as Held for Sale This section discloses that as at June 30, 2024, the Group classified the assets and liabilities of four solar power plant project subsidiaries (Huangshi Huangyuan, Dingbian Jingyang, Dingbian Wanheshun, and Yulin Zhengxin) as a disposal group held for sale, with these disposals expected to be completed within twelve months after the reporting period and an impairment loss recognized - Assets and liabilities of Huangshi Huangyuan, Dingbian Jingyang, Dingbian Wanheshun, and Yulin Zhengxin are presented as a disposal group classified as held for sale[129] - The disposals are highly probable and expected to be completed within twelve months after the reporting period[129] Assets and Liabilities of Disposal Group Classified as Held for Sale | Item | As at June 30, 2024 (RMB thousand) | | :--- | :--- | | Total assets classified as held for sale | 1,290,951 | | Total liabilities classified as held for sale | (277,488) | - An impairment loss of approximately RMB 1,443,000 was recognized for the disposal group classified as held for sale during the period[47][129] Trade and Other Payables This section provides a detailed analysis of trade and other payables, noting a total of RMB 626,997,000 as at June 30, 2024, a decrease from 2023 year-end, with other payables and accrued expenses forming the major portion, and includes an aging analysis of trade payables Composition of Trade and Other Payables | Item | As at June 30, 2024 (RMB thousand) | As at December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 36,745 | 24,475 | | Other payables and accrued expenses | 590,252 | 643,922 | | Total | 626,997 | 668,397 | Aging Analysis of Trade Payables | Aging | As at June 30, 2024 (RMB thousand) | | :--- | :--- | | Current or less than three months | 5,435 | | Over three months but less than six months | 2,244 | | Over six months but less than twelve months | 4,612 | | Over twelve months | 24,454 | | Total | 36,745 | Loans and Borrowings This section provides detailed information on the Group's loans and borrowings, totaling RMB 1,532,263,000 as at June 30, 2024, a decrease from 2023 year-end, with most being current liabilities, all denominated in RMB, bearing fixed and floating interest rates, and secured by substantial assets Total Loans and Borrowings | Item | As at June 30, 2024 (RMB thousand) | As at December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | Current | 1,013,352 | 1,026,803 | | Non-current | 518,911 | 632,413 | | Total | 1,532,263 | 1,659,216 | - The annual interest rate for loans and other borrowings ranges from 3.85% to 8.40%[133] Analysis of Fixed and Floating Rate Borrowings | Type | As at June 30, 2024 (RMB thousand) | As at December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | Fixed rate borrowings | 1,075,050 | 1,172,530 | | Floating rate borrowings | 457,213 | 486,686 | | Total | 1,532,263 | 1,659,216 | Assets Pledged for Loans and Borrowings | Pledged Assets | As at June 30, 2024 (RMB thousand) | | :--- | :--- | | Solar power plants | 725,476 | | Trade receivables | 394,530 | | Financial assets measured at fair value through other comprehensive income | 120,183 | | Total | 1,240,189 | Corporate Bonds This section details the Group's outstanding corporate bonds, with a total principal amount of HKD 19,000,000 (approximately RMB 17,341,000) remaining outstanding as at June 30, 2024, bearing interest rates between 3% and 6% per annum and measured at amortized cost using the effective interest method - As at June 30, 2024, corporate bonds with a total principal amount of HKD 19,000,000 (approximately RMB 17,341,000) remained outstanding[137] - Corporate bonds bear interest at annual rates ranging from 3% to 6% and mature between 36 and 96 months from the issue date[137] - Corporate bonds are measured at amortized cost using the effective interest method, with an effective annual interest rate of 10.40%[137] - Estimated interest on corporate bonds of approximately RMB 367,000 was recognized in profit or loss for the six months ended June 30, 2024[137] Share Capital This section discloses Kong Sun Holdings' issued and fully paid share capital as at June 30, 2024, noting that the number of shares and share capital amount remained unchanged from January 1, 2023, to June 30, 2024 Issued and Fully Paid Share Capital | Item | Number of Shares (thousand shares) | RMB thousand | | :--- | :--- | :--- | | As at June 30, 2024 | 14,964,442 | 6,486,588 | - The issued and fully paid share capital remained unchanged from January 1, 2023, to June 30, 2024[137] Disposal of Subsidiaries This section details the Group's disposal of a 60% equity interest in Shaanxi Yirun New Energy Technology Co., Ltd. and Beijing Xintai Lv Neng Technology Co., Ltd. for a cash consideration of RMB 4,200,000, resulting in a net loss on disposal of approximately RMB 3,307,000 for the six months ended June 30, 2024 - The Group completed the disposal of a 60% equity interest in Shaanxi Yirun New Energy Technology Co., Ltd. and Beijing Xintai Lv Neng Technology Co., Ltd. for a cash consideration of RMB 4,200,000[137] - These entities are primarily engaged in providing solar power plant operation and maintenance services[137] - The net loss on disposal of subsidiaries was approximately RMB 3,307,000[138] - The net cash outflow generated from the disposal of subsidiaries was RMB (2,657,000)[138] Capital Commitments This section discloses the Group's unfulfilled capital commitments as at June 30, 2024, primarily consisting of contracted but unprovided construction costs and service fees for solar power plants under construction, totaling RMB 16,188,000 Capital Commitments | Item | As at June 30, 2024 (RMB thousand) | | :--- | :--- | | Contracted but not provided for — construction costs and service fees for solar power plants under construction | 16,188 | - Approximately RMB 10,307,000 of capital commitments are attributable to subsidiaries classified as held for sale[139] Significant Related Party Transactions This section discloses significant transactions entered into by the Group with related parties for the six months ended June 30, 2024, primarily including loans provided to and received from Jiangshan Baoyuan International Financial Leasing Co., Ltd. and its wholly-owned subsidiary, both bearing specific annual interest rates - The Group provided a loan to associate Jiangshan Baoyuan International Financial Leasing Co., Ltd., with a net amount of RMB 130,562,000, bearing an annual interest rate of 9.0%[60][139] - The Group obtained a loan from a wholly-owned subsidiary of associate Jiangshan Baoyuan, with a net amount of RMB 26,100,000, bearing an annual interest rate of 6.0% and secured by certain trade receivables of the Group[140] Fair Value Measurement This section explains the Group's fair value measurement methodology for financial assets, particularly those measured at fair value through other comprehensive income, which are classified as Level 3 fair value hierarchy, with valuation using market approach techniques and adjusted for lack of marketability, resulting in a fair value loss for the period - Financial assets measured at fair value through other comprehensive income are classified as Level 3 in the fair value hierarchy[149] - The fair value of Hohhot Jingu Bank and Jinzhou Bank shares is derived using market approach techniques (publicly traded comparable guideline method) and adjusted for a lack of marketability discount (20.5%)[151][152] - For the six months ended June 30, 2024, the fair value change recognized in other comprehensive income was a loss of approximately RMB 20,609,000[153] Events After Reporting Period This section reiterates a significant event after the reporting date: on August 15, 2024, a wholly-owned subsidiary agreed to subscribe for and acquire a total 30% equity interest in Beijing Sibo Huiyi Technology Co., Ltd. for RMB 50,000,000, which will not result in the target company becoming a subsidiary - On August 15, 2024, a subsidiary of the Company agreed to subscribe for a 20% equity interest in Beijing Sibo Huiyi Technology Co., Ltd. for RMB 36,000,000 and acquire a 10% equity interest for RMB 14,000,000[154] - Upon completion, the Company will hold a 30% equity interest in the target company, but it will not become a subsidiary of the Company[154]