中国核能科技(00611) - 2025 - 中期业绩

Financial Highlights The company's H1 2025 revenue decreased by 28.6% to RMB 533 million due to EPC business adjustments, while profit for the period and basic EPS significantly increased, and total assets and net assets grew H1 2025 Financial Highlights | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 533,102 | 746,741 | (28.6) | | Profit before income tax expense | 112,529 | 92,633 | 21.5 | | Profit for the period | 85,549 | 70,719 | 21.0 | | Basic earnings per share (RMB cents) | 4.65 | 3.80 | 22.4 | | Total assets (period-end) | 10,767,906 | 10,323,470 | 4.3 | | Net assets (period-end) | 1,801,597 | 1,711,215 | 5.3 | Management Discussion and Analysis This section details the company's H1 2025 operations, industry trends, financial performance, and future outlook, highlighting strategic adjustments towards energy storage and operational efficiency despite a revenue decline Business Review and Outlook In H1 2025, the new energy sector saw rapid growth driven by policy and technology, but faced supply chain and trade challenges, prompting the company to focus on energy storage and high self-consumption distributed PV projects Industry Development Review H1 2025 saw the new energy industry expand in scale and quality, driven by government policies, technological advancements, and market demand, despite facing supply chain volatility and international trade barriers - In H1 2025, the new energy industry demonstrated a "parallel expansion of scale and quality" driven by policy guidance, technological breakthroughs, and market demand, maintaining high growth despite challenges like supply chain volatility and international trade barriers[4] - The National Energy Administration issued the "Administrative Measures for the Development and Construction of Distributed Photovoltaic Power Generation," standardizing household and industrial/commercial distributed PV projects, simplifying filing, encouraging diverse investment, and stipulating that full grid-connected projects will not be approved after May 1, 2025, with surplus electricity from self-consumption projects participating in market transactions[5] - The National Development and Reform Commission and the National Energy Administration issued Document No. 136, "Notice on Deepening the Market-Oriented Reform of New Energy On-grid Tariffs and Promoting High-Quality Development of New Energy," proposing "full market entry" for new energy on-grid electricity and setting June 1, 2025, as the "new and old demarcation" date for different pricing mechanisms for existing and new projects[6] - The National Energy Administration released the "2025 Energy Work Guidance Opinion," targeting a national total installed power generation capacity of over 3.6 billion kW, with over 200 million kW of new new energy installed capacity, and actively promoting large-scale wind and PV bases in desert areas and offshore wind power projects[7] - The Ministry of Ecology and Environment issued the "Work Plan for Expanding the National Carbon Emission Trading Market to Cover Steel, Cement, and Aluminum Smelting Industries," which will integrate these three high-energy-consuming sectors into the national carbon market in two phases, promoting "green electricity purchase and green hydrogen use" by enterprises and fostering interaction between green certificate trading and the carbon market[8] - The National Development and Reform Commission and the National Energy Administration issued Document No. 394, "Notice on Comprehensively Accelerating the Construction of Electricity Spot Markets," requiring basic full coverage of electricity spot markets by the end of 2025, full implementation of continuous settlement operations, and clarifying the timetable for electricity spot market operations in 20 provinces[10] H1 2025 Photovoltaic Power Generation Industry Key Data | Metric | H1 2025 | YoY Change | | :--- | :--- | :--- | | New installed capacity | 212.2 GW | 107.1% | | Cumulative installed capacity (as of end of June) | 1,100 GW | 54.2% | | Share of national total installed power generation capacity | 30.1% | - | | Average utilization rate | Approx. 94% | Down 2.3 percentage points | | TOPCon module conversion efficiency | 25.58% | - | | HIBC cell conversion efficiency | 27.81% | - | | Perovskite tandem module efficiency | 30.6% | - | | TOPCon module price | Approx. RMB 0.65/W | Down from RMB 0.7/W at year-start | | New installed capacity in June | 14.36 GW | Down 38% (YoY), Down 85% (MoM) | H1 2025 Wind Power Generation Industry Key Data | Metric | H1 2025 | YoY Change | | :--- | :--- | :--- | | New installed capacity | 51.4 GW | 98.9% | | Cumulative grid-connected capacity (as of end of June) | 572.6 GW | 22.7% | | Average utilization rate | Approx. 93.2% | Down 2.7 percentage points | | Onshore wind turbine cost | Approx. RMB 1.5/W | Down from RMB 4/W in 2020 | | Offshore wind turbine (incl. tower) average winning bid price | Approx. RMB 3/W | - | | New installed capacity in June | 5.11 GW | Down 16% (YoY), Down 81% (MoM) | H1 2025 Energy Storage Industry Key Data | Metric | H1 2025 | YoY Change | | :--- | :--- | :--- | | New installed power capacity | 21.9 GW | 69.4% | | New installed energy capacity | 55.2 GWh | - | | Grid-side energy storage share | 64.9% | - | | Power source-side energy storage share | 26.7% | - | | User-side energy storage new installed capacity | Doubled YoY | - | | Annualized utilization hours | 1,022–1,200 hours | Slightly up from 1,000 hours in 2024 | | 2h energy storage system price | Approx. RMB 0.55/Wh | Down from RMB 0.85/Wh at early 2024 | | Energy storage cell price | Approx. RMB 0.3/Wh | Down from RMB 0.45/Wh at early 2024 | | New installed power capacity in June | 4.1 GW | Down 31.2% (YoY), Down 53.2% (MoM) | Group Business Review In H1 2025, the Group adjusted its strategy to prioritize energy storage and high self-consumption distributed PV projects, achieving progress in new energy development, EPC construction, and power station O&M, leading to increased overall profit despite reduced EPC and financing revenue - The Group adjusted its business direction, prioritizing energy storage development this year, while actively pursuing distributed PV projects with high self-consumption rates and decentralized wind power projects with local priority consumption[16] - In H1, the Group tracked over 6 GW of new energy projects, with 4.2 GW identified as key development projects, successfully bidding for the Huazun Liuxinzhen 25.2 MW project, advancing the Lincang Phase II 100 MW/200 MWh energy storage project to grid connection, and securing the Jiyuan Steel 80 MW/240 MWh energy storage project[17] - Leveraging shareholder resources, the Group actively developed Baowan Logistics rooftop distributed PV power stations, completing grid connection for 14 projects in H1, with 7 projects under construction and 6 projects approved for commencement; additionally, it actively explored overseas markets, promoting the Sri Lanka Hambantota integrated PV-storage project[17] H1 2025 Group Key Financial Indicators | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 533,102 | 746,741 | (28.6) | | Profit attributable to equity holders | 86,122 | 70,383 | 22.4 | | Basic earnings per share (RMB cents) | 4.65 | 3.80 | 22.4 | EPC, Consulting, and Integrated Construction Business Revenue | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue from sales to external customers | 32,422 | 362,737 | (91.1) | - The decrease in EPC business revenue is primarily due to a change in business strategy, with new energy EPC business mainly focused on self-invested and self-built projects, where most revenue is offset at the consolidated level; municipal EPC business contracted and exited due to the downturn in the real estate industry, with no new projects undertaken in 2025[19] - In H1, the Group undertook 14 new energy EPC projects with a total contract value of approximately RMB 345 million, covering centralized PV, distributed PV, and energy storage, and successfully grid-connected 14 Baowan Logistics rooftop distributed projects and the Lincang Phase II 100 MW/200 MWh energy storage project[20] - The Group's wholly-owned subsidiary upgraded its "Power Installation, Repair, and Testing Qualification" from Level 4 to Level 3, obtained 2 utility model patents and 1 invention patent, and maintained its qualification as a High-Tech Enterprise in Jiangsu Province[21] Power Generation Business Key Data | Metric | H1 2025 | H1 2024 (Restated) | Change (%) | | :--- | :--- | :--- | :--- | | Total operating power stations | 117 | - | - | | Total wind and PV operating capacity | 2,030 MW | - | - | | Energy storage power station operating capacity | 551 MWh | - | - | | Wind and PV total power generation | 1.14 billion kWh | - | - | | Cumulative PV power station generation | 820 million kWh | - | - | | Cumulative wind power station generation | 320 million kWh | - | - | | Green electricity trading volume | Approx. 25 million kWh | - | - | | Increased revenue from green electricity trading | Approx. RMB 480 thousand | - | - | | Green certificate trading volume | 408 thousand certificates | - | - | | Increased revenue from green certificate trading | Approx. RMB 1.52 million | - | - | | Power generation segment revenue | RMB 493,208 thousand | RMB 372,912 thousand | 32.3 | | Power generation segment profit (before tax and finance costs) | RMB 239,590 thousand | RMB 180,217 thousand | 33.0 | - To ensure distributed PV projects continued under existing policies, the Group optimized design and implemented cross-construction measures to ensure 14 Baowan Logistics distributed rooftop PV projects were grid-connected before April 30, 2025[22] - The Group vigorously expanded its energy storage business, adding 245 MWh of grid-connected capacity, including the Lincang Phase II 100 MW/200 MWh energy storage project which achieved full capacity grid connection on May 28, generating revenue through charge-discharge price differences and capacity leasing, and reducing curtailment rates for power stations in the Yunnan region[23] - The Group continued to advance the standardization of power station operations, enhancing intelligent O&M capabilities, with its independently developed intelligent O&M system now operational, achieving a power station equipment availability rate of 99.7%, 0.7 percentage points higher than the industry standard[24] Financing Business Revenue | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Segment revenue from external customers | 7,472 | 11,092 | (32.6) | - The decrease in financing business revenue is mainly due to intense industry competition and difficulties in project expansion; the Group continues to conduct financial leasing business in the new energy sector, connecting with 22 projects (17 PV, 5 energy storage) in H1, achieving 107.9% of its annual investment plan[26][27] Business Outlook The 136 document marks a shift in the new energy sector from policy-driven expansion to market-led high-quality development, accelerating electricity spot markets, driving refined operations for wind and PV, and transforming energy storage into a value-driven industry - Document No. 136 is a landmark for China's new energy industry, signaling a shift from "policy-driven scale expansion" to "market-led high-quality development," marking a deeper phase of new energy electricity market reform with systemic and structural impacts across the entire new energy industry chain[28] - Document No. 394, in conjunction with Document No. 136, jointly promotes nationwide coverage of electricity spot markets (targeting end of 2025), normalizing time-of-use pricing and supply-demand response, providing price signals to guide resource allocation for new energy and energy storage, and compelling the power system to transition towards "new energy as the main source, thermal power for peak shaving"[29] - Each province will formulate differentiated implementation rules based on local new energy penetration, absorption capacity, and market development, requiring new energy investment enterprises to deeply understand and adapt to local policies while strategically deploying in high electricity price markets to optimize returns[30] - The wind and PV industries will shift from scale expansion to refined operations, with revenue models being restructured, forcing improvements in levelized cost of electricity control and regulation capabilities; enterprises need to strengthen power generation forecasting, optimize bidding strategies, and enhance market-oriented trading capabilities[31] - Energy storage demand will transition from "policy-mandated" to genuine market-driven needs, with core drivers including peak shaving and frequency regulation in weak grid areas, user-side arbitrage, improving the economic viability of self-consumption for distributed projects, and virtual power plants aggregating resources to provide ancillary services[32] - The rise of distributed PV and "wall-to-wall" power sales models promotes the transformation of distributed energy from "surplus power to grid" to primarily self-consumption, direct supply to users via "wall-to-wall" sales, or aggregation into microgrids for power sales, fostering the rapid development of new entities such as "wall-to-wall" power sales service providers and integrated energy integrators[33] - Virtual Power Plants (VPPs) will become a core market hub, aggregating distributed wind, PV, and storage, as well as interruptible loads, to provide services such as peak shaving, frequency regulation, and reserves to the grid, becoming a key tool for new energy projects to participate in market transactions and obtain excess returns[33] Financial Performance Analysis In H1 2025, the Group's consolidated revenue decreased by 28.6% to RMB 533 million due to a significant decline in EPC segment revenue, yet profit for the period increased by 21.0% to RMB 85.55 million driven by enhanced power station O&M and increased generation, improving the net profit margin to 16.0% H1 2025 Revenue Composition | Segment | H1 2025 (RMB thousand) | Share (%) | H1 2024 (RMB thousand) | Share (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | EPC, Consulting, and Integrated Construction | 32,422 | 6.1 | 362,737 | 48.6 | (91.1) | | Power Generation | 493,208 | 92.5 | 372,912 | 49.9 | 32.3 | | Financing | 7,472 | 1.4 | 11,092 | 1.5 | (32.6) | | Total | 533,102 | 100.0 | 746,741 | 100.0 | (28.6) | - Profit attributable to owners of the Company increased by approximately 22.4% to RMB 86,122,000, with basic earnings per share of RMB 4.65 cents, up 22.4% from RMB 3.80 cents in the same period last year[34][38] - The increase in profit is primarily due to the Group's continuous improvement in intelligent O&M of power stations, consistently enhancing equipment availability and power generation, leading to an increase in net profit margin to 16.0% (H1 2024: 9.5%)[38] H1 2025 Other Income, Gains, and Losses – Net | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Other income, gains, and losses – net | 183 | 10,423 | Significant decrease | | Primary reasons | Decrease in interest income due to reduced bank deposits, and exchange losses from HKD depreciation against RMB | - | - | H1 2025 Cost of Sales | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of sales | 279,895 | 514,265 | (45.6) | | Primary reasons | Business adjustments in the EPC segment | - | - | H1 2025 Administrative Expenses | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative expenses | 43,494 | 47,686 | (8.8) | | Primary components | Staff costs, depreciation, bank charges, professional fees, administrative expenses, and R&D expenses | - | - | H1 2025 Finance Costs | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Finance costs | 98,013 | 103,129 | (5.0) | | Primary reasons | Significant reduction in bank loan interest rates due to high-interest replacement and LPR adjustments | - | - | H1 2025 Income Tax Expense | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Income tax expense | 26,980 | 21,914 | 23.1 | | Primary reasons | Consistent with the Group's overall business growth rate | - | - | Financial Position As of June 30, 2025, the Group's total assets increased by 4.3% to RMB 10.768 billion, with total liabilities growing 4.1% to RMB 8.966 billion, and total equity attributable to owners increasing 5.4% to RMB 1.764 billion, maintaining a prudent financial management approach H1 2025 Balance Sheet Overview | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total assets | 10,767,906 | 10,323,470 | 4.3 | | Current assets | 3,513,910 | 3,420,050 | 2.7 | | Non-current assets | 7,253,996 | 6,903,420 | 5.1 | | Total liabilities | 8,966,309 | 8,612,255 | 4.1 | | Current liabilities | 3,429,913 | 3,345,013 | 2.5 | | Non-current liabilities | 5,536,396 | 5,267,242 | 5.1 | | Total equity attributable to owners of the Company | 1,764,152 | 1,673,197 | 5.4 | H1 2025 Liquidity and Gearing Ratio | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net current assets | RMB 83,997 thousand | RMB 75,037 thousand | | Cash and cash equivalents | RMB 925,001 thousand | RMB 831,871 thousand | | Gearing ratio | 4.42 | 4.31 | | Debt-to-asset ratio | 0.83 | 0.83 | - The Group has pledged bank deposits of RMB 75,336,000, as well as finance lease receivables, trade and bills receivables, and power stations, to secure bank and other borrowings[49] - The Group primarily funds its operations through internally generated resources, bank and other borrowings, and fundraising activities, regularly reviewing its liquidity and financing needs and adopting a prudent financial management approach[50][51] H1 2025 Capital Expenditure and Commitments | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Capital expenditure | 563,003 | 640,145 | | Purpose | Investment, development, and construction of power station equipment | Investment, development, and construction of power station equipment | | Contractual commitments for power station construction (period-end) | 1,016,473 | 964,591 | H1 2025 Employment and Remuneration Policy | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total employees | 355 | 325 | | Staff costs (RMB thousand) | 47,291 | 33,639 | | Remuneration determination | Based on Group performance and individual performance | Based on Group performance and individual performance | Interim Condensed Consolidated Financial Statements This section presents the unaudited interim condensed consolidated statement of profit or loss and other comprehensive income and statement of financial position for China Nuclear Energy Technology Group Co., Ltd. for the six months ended June 30, 2025, showing decreased revenue but increased profit and steady growth in net assets Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the Group reported revenue of RMB 533 million and gross profit of RMB 253 million, with profit for the period increasing 21.0% to RMB 85.55 million and total comprehensive income at RMB 90.38 million Summary of Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 533,102 | 746,741 | | Cost of sales | (279,895) | (514,265) | | Gross profit | 253,207 | 232,476 | | Other income, gains and losses – net | 183 | 10,423 | | Administrative expenses | (43,494) | (47,686) | | Finance costs | (98,013) | (103,129) | | Profit before tax | 112,529 | 92,633 | | Income tax expense | (26,980) | (21,914) | | Profit for the period | 85,549 | 70,719 | | Total comprehensive income for the period | 90,382 | 67,911 | | Profit attributable to owners of the parent | 86,122 | 70,383 | | Basic earnings per share (RMB cents) | 4.65 | 3.80 | - Exchange differences arising from the translation of foreign operations amounted to RMB 4,833 thousand, contributing to an increase in other comprehensive income for the period[57] Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets reached RMB 10.768 billion, a 4.3% increase from year-end 2024, with non-current assets at RMB 7.254 billion and current assets at RMB 3.514 billion, while total liabilities were RMB 8.966 billion and net assets RMB 1.802 billion Summary of Interim Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current assets | | | | Property, plant and equipment | 6,418,788 | 6,096,004 | | Right-of-use assets | 428,987 | 392,741 | | Total non-current assets | 7,253,996 | 6,903,420 | | Current assets | | | | Trade and bills receivables | 1,470,572 | 1,435,704 | | Cash and cash equivalents | 925,001 | 831,871 | | Total current assets | 3,513,910 | 3,420,050 | | Current liabilities | | | | Trade and bills payables | 693,701 | 891,201 | | Bank and other borrowings (current) | 2,403,304 | 2,098,277 | | Total current liabilities | 3,429,913 | 3,345,013 | | Non-current liabilities | | | | Bank and other borrowings (non-current) | 5,161,780 | 4,929,416 | | Total non-current liabilities | 5,536,396 | 5,267,242 | | Net assets | 1,801,597 | 1,711,215 | | Total equity | 1,801,597 | 1,711,215 | Notes to the Interim Condensed Consolidated Financial Statements This section provides detailed notes to the interim condensed consolidated financial statements, covering company information, accounting policies, financial instruments, segment reporting, cost and tax components, EPS calculation, dividend policy, asset and liability breakdowns, business combinations, contingent liabilities, commitments, and related party transactions Company Information China Nuclear Energy Technology Group Co., Ltd., incorporated in Bermuda, primarily engages in Engineering, Procurement, and Construction (EPC) and consulting and integrated construction services, power generation, and financing services - The Company, incorporated in Bermuda, primarily engages in EPC and consulting and integrated construction services, power generation, and financing services[62][64] Basis of Preparation and Accounting Policies The interim financial statements are prepared in accordance with HKAS 34 and applicable disclosure provisions of the Listing Rules, consistent with annual financial statements, with no significant impact from new or revised HKFRSs effective January 1, 2025 - The interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[62] - The accounting policies applied and significant judgments made by management are consistent with those described in the annual financial statements for the year ended December 31, 2024, and all new or revised Hong Kong Financial Reporting Standards effective from January 1, 2025, have no significant impact on the Group's accounting policies[63] Financial Instruments The fair value measurement of the Group's financial instruments utilizes market observable inputs where possible and is categorized into three levels, with no transfers between levels during H1 2025, and the carrying amounts of most financial and non-financial assets and liabilities approximate their fair values - The fair value measurement of the Group's financial and non-financial assets and liabilities uses market observable inputs where possible and is categorized into three levels (Level 1: quoted prices in active markets; Level 2: significant observable inputs; Level 3: significant unobservable inputs)[65][68] - There were no transfers between levels during the six months ended June 30, 2025[66] Financial Assets at Fair Value Through Profit or Loss | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Unlisted equity investments | 45,318 | 45,334 | | Valuation method | Income approach or recent transaction prices, using discounted cash flow method with a discount rate of 10.67% | - | Segment Reporting and Revenue The Group has three reportable operating segments: EPC and consulting and integrated construction services, power generation, and financing services, with performance assessed by adjusted profit/loss before tax, where the power generation segment contributed the largest revenue of RMB 493 million and segment results of RMB 240 million in H1 2025 - The Group has three reportable operating segments: EPC and consulting and integrated construction services, power generation, and financing services[69][72] - Segment performance is assessed by reportable segment profit/loss (measured as adjusted profit/loss before tax)[69] H1 2025 Segment Revenue and Results | Segment | Sales to external customers (RMB thousand) | Total segment revenue (RMB thousand) | Segment results (RMB thousand) | | :--- | :--- | :--- | :--- | | EPC, Consulting, and Integrated Construction | 32,422 | 360,220 | (27,665) | | Power Generation | 493,208 | 493,208 | 239,590 | | Financing | 7,472 | 8,191 | 658 | | Total (external customers) | 533,102 | 861,619 | 212,583 | H1 2025 Segment Assets and Liabilities | Segment | Segment assets (RMB thousand) | Segment liabilities (RMB thousand) | | :--- | :--- | :--- | | EPC, Consulting, and Integrated Construction | 1,638,025 | 2,373,727 | | Power Generation | 8,566,686 | 6,003,567 | | Financing | 332,524 | 132,317 | | Total | 10,537,235 | 8,509,611 | Finance Costs For the six months ended June 30, 2025, the Group's finance costs decreased by 5.0% to RMB 98.01 million, primarily comprising interest on bank and other borrowings and lease liabilities H1 2025 Finance Costs Composition | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on bank and other borrowings | 92,380 | 100,483 | | Interest on lease liabilities | 5,633 | 2,646 | | Total | 98,013 | 103,129 | Profit Before Tax The Group's profit before tax for the six months ended June 30, 2025, was RMB 113 million, after deducting various expenses including depreciation of property, plant and equipment, right-of-use assets, and staff costs H1 2025 Profit Before Tax Deductions | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Reversal of impairment allowance for trade and bills receivables and contract assets | 241 | 370 | | Auditor's remuneration | 230 | 227 | | Bank charges | 2,822 | 2,535 | | Legal and professional fees | 2,919 | 2,773 | | Short-term and low-value lease expenses | 2,253 | 1,545 | | Research and development expenses | 172 | 73 | | Total staff costs | 29,208 | 33,291 | | Depreciation of property, plant and equipment | 175,679 | 158,211 | | Depreciation of right-of-use assets | 13,651 | 12,271 | Income Tax For the six months ended June 30, 2025, the Group's income tax expense increased by 23.1% to RMB 26.98 million, consistent with overall business growth, with a high-tech subsidiary in China enjoying a 15% corporate income tax rate reduction - The Group's income tax expense increased by approximately 23.1% to RMB 26,980,000, consistent with the Group's overall business growth rate[43][81] - A subsidiary operating in mainland China was recognized as a "High-Tech Enterprise," qualifying for a 15% corporate income tax rate reduction for the period from 2023 to 2025[79] H1 2025 Income Tax Expense Composition | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Current – Mainland China expense for the period | 27,350 | 18,915 | | Prior years (over-provision) / under-provision | (348) | 1,079 | | Deferred tax | (22) | 1,920 | | Income tax expense | 26,980 | 21,914 | Earnings Per Share Attributable to Owners of the Parent For the six months ended June 30, 2025, basic and diluted earnings per share attributable to owners of the parent increased to RMB 4.65 cents from RMB 3.80 cents in the prior year, based on profit of RMB 86.12 million and 1,852,037 thousand weighted average ordinary shares H1 2025 Earnings Per Share Calculation | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit used for basic and diluted EPS calculation | RMB 86,122 thousand | RMB 70,383 thousand | | Basic and diluted earnings per share | RMB 4.65 cents | RMB 3.80 cents | | Issued share capital (beginning and end of period) | 1,852,037 thousand shares | 1,852,037 thousand shares | | Weighted average number of ordinary shares | 1,852,037 thousand shares | 1,852,037 thousand shares | Dividends The Company's directors did not declare or propose any dividends for the six months ended June 30, 2025 - The Company's directors did not declare or propose any dividends for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[84] Property, Plant and Equipment For the six months ended June 30, 2025, the Group acquired property, plant and equipment at a cost of approximately RMB 503 million, including approximately RMB 80.81 million acquired through business combinations H1 2025 Property, Plant and Equipment Acquisition Cost | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Acquisition cost | 502,752 | 696,606 | | Acquisition cost through business combinations | 80,813 | - | Investment in an Associate As of June 30, 2025, the Group's investment in its associate, CNNC Qiqihar Solar Power Generation Co., Ltd., was RMB 6.73 million, representing a 49% ownership interest, aligning with the Group's power generation segment Investment in an Associate | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Share of net assets | 6,725 | 6,320 | - The associate is CNNC Qiqihar Solar Power Generation Co., Ltd., with the Group's ownership interest at 49%, primarily engaged in solar power generation and sales, solar technology consulting services, PV technology development, and solar PV system construction in China[87] Trade and Bills Receivables As of June 30, 2025, the Group's net carrying amount of trade and bills receivables was RMB 1.471 billion, a slight increase from year-end 2024, with credit terms generally three months but extendable up to one year for major customers, and overdue balances regularly reviewed H1 2025 Trade and Bills Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables | 1,477,164 | 1,443,093 | | Bills receivables | 26,242 | 25,622 | | Impairment | (32,834) | (33,011) | | Net carrying amount | 1,470,572 | 1,435,704 | H1 2025 Ageing Analysis of Trade and Bills Receivables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 90 days | 190,368 | 273,385 | | 91 to 180 days | 63,607 | 257,669 | | 181 to 365 days | 371,973 | 157,363 | | Over 365 days | 877,458 | 780,298 | | Total | 1,503,406 | 1,468,715 | Pledged Bank Deposits As of June 30, 2025, the Group's pledged bank deposits amounted to RMB 75.34 million, a decrease from year-end 2024, primarily used to secure general bank facilities and bills payable, bearing fixed annual interest rates between 0.2% and 1.3% Pledged Bank Deposits | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Pledged bank deposits | 75,336 | 100,894 | | Interest rate range | 0.2% to 1.3% (fixed annual interest rate) | 0.1% to 1.3% (fixed annual interest rate) | | Currency | RMB | RMB | - Pledged bank deposits are primarily used to secure general bank facilities and bills payable and are classified as current assets[91] Trade and Bills Payables As of June 30, 2025, the Group's trade and bills payables totaled RMB 694 million, a decrease from year-end 2024, with the largest portion of accounts payable being over 365 days, and these payables are non-interest bearing H1 2025 Ageing Analysis of Trade and Bills Payables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 90 days | 160,617 | 241,555 | | 91 to 180 days | 89,956 | 106,489 | | 181 to 365 days | 123,509 | 138,688 | | Over 365 days | 319,619 | 404,469 | | Total | 693,701 | 891,201 | - Trade and bills payables are non-interest bearing[92] Interest-Bearing Bank and Other Borrowings As of June 30, 2025, the Group's total interest-bearing bank and other borrowings increased to RMB 7.565 billion, comprising RMB 2.403 billion in current and RMB 5.162 billion in non-current borrowings, all bearing floating interest rates between 2.2% and 3.75% and secured by various assets H1 2025 Interest-Bearing Bank and Other Borrowings | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current | | | | Short-term bank borrowings, secured | 1,505,029 | 1,297,481 | | Short-term bank borrowings, unsecured | 456,437 | 390,719 | | Long-term bank borrowings, secured, current portion | 421,536 | 390,566 | | Other borrowings, secured, current portion | 20,302 | 19,511 | | Total – Current | 2,403,304 | 2,098,277 | | Non-current | | | | Long-term bank borrowings, secured | 5,062,744 | 4,825,432 | | Other borrowings, secured | 99,036 | 103,984 | | Total – Non-current | 5,161,780 | 4,929,416 | | Total | 7,565,084 | 7,027,693 | - Secured bank and other borrowings are pledged by corporate guarantees, finance lease receivables, trade and bills receivables, power stations, and shares of certain subsidiaries[94] - All bank and other borrowings bear floating effective annual interest rates ranging from 2.2% to 3.75% (December 31, 2024: 1.5% to 7.0%)[95] H1 2025 Scheduled Repayment of Bank and Other Borrowings | Repayment period | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within one year | 2,403,304 | 2,098,277 | | Over one year but not exceeding two years | 544,575 | 534,315 | | Over two years but not exceeding five years | 1,592,683 | 1,436,711 | | After five years | 3,024,522 | 2,958,390 | | Total | 7,565,084 | 7,027,693 | - As of June 30, 2025, the Group's undrawn bank loan facilities amounted to RMB 3,308,529,000[96] Share Capital As of June 30, 2025, the Company's issued and fully paid share capital remained consistent with year-end 2024, comprising 1,852,037 thousand shares with a capital amount of RMB 162.34 million Issued Share Capital | Metric | June 30, 2025 (thousand shares) | June 30, 2025 (RMB thousand) | | :--- | :--- | :--- | | Issued and fully paid share capital | 1,852,037 | 162,338 | Business Combinations On March 31, 2025, the Group acquired 100% equity interest in Shaoguan Dingrong New Energy Technology Co., Ltd. for RMB 1 million in cash to expand its power generation market share in China, resulting in negative goodwill of RMB 1.27 million - On March 31, 2025, the Group acquired 100% equity interest in Shaoguan Dingrong New Energy Technology Co., Ltd. from a third-party company, as part of the Group's strategy to expand its market share in China's power generation market[98] Fair Value of Shaoguan Dingrong New Energy Technology Co., Ltd. at Acquisition | Item | Fair value recognized at acquisition (RMB thousand) | | :--- | :--- | | Property, plant and equipment | 80,813 | | Right-of-use assets | 3,200 | | Trade receivables | 1,631 | | Prepayments and other receivables | 643 | | Trade payables | (70,742) | | Accruals and other payables | (9,946) | | Lease liabilities | (3,332) | | Total identifiable net assets measured at fair value | 2,267 | | Goodwill at acquisition | (1,267) | | Cash paid | 1,000 | - Since the acquisition, Shaoguan Dingrong New Energy Technology Co., Ltd. contributed RMB 1,893,000 in revenue and a consolidated loss of RMB 67,000 to the Group for the six months ended June 30, 2025[100] Contingent Liabilities As of the end of the reporting period, the Group had no significant contingent liabilities - As of the end of the reporting period, the Group had no significant contingent liabilities[101] Commitments As of June 30, 2025, the Group's contractual commitments for the construction of power stations increased to RMB 1.016 billion from year-end 2024 Contractual Commitments for Power Station Construction | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Contractual commitments | 1,016,473 | 964,591 | Related Party Transactions For the six months ended June 30, 2025, the Group engaged in various related party transactions, including new right-of-use assets, interest and payments for lease liabilities, electricity sales, and new property, plant and equipment, with outstanding balances including RMB 58.66 million in lease liabilities and RMB 6.17 million in trade and bills receivables H1 2025 Related Party Transactions | Transaction type | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | New right-of-use assets from related companies | 44,714 | 2,687 | | Interest paid on lease liabilities to related companies | 317 | 132 | | Payments for lease liabilities to related companies | 4,627 | 808 | | Sales of electricity to related companies | 2,197 | 937 | | New property, plant and equipment from related companies | 334 | - | Outstanding Balances with Related Parties | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Lease liabilities to related companies | 58,659 | 18,254 | | Trade and bills receivables from related companies | 6,166 | 5,956 | Key Management Personnel Remuneration | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Short-term employee benefits | 1,645 | 1,202 | | Contributions to pension schemes | 162 | 141 | | Remuneration paid to key management personnel | 1,807 | 1,343 | Comparative Figures Comparative figures for the six months ended June 30, 2024, have been restated due to a change in the presentation currency of the consolidated financial statements from HKD to RMB - Comparative figures for the six months ended June 30, 2024, have been restated in these interim financial statements due to a change in the presentation currency of the consolidated financial statements from HKD to RMB[106] Approval of Financial Statements The Board of Directors approved and authorized the publication of the interim financial statements on August 26, 2025 - The Board of Directors approved and authorized the publication of the interim financial statements on August 26, 2025[107] Corporate Governance and Other Information This section outlines the company's corporate governance practices, including compliance with Listing Rules, the audit committee's role, directors' securities trading standards, and confirms no purchases, sales, or redemptions of listed securities, no significant post-balance sheet events, and no interim dividend declaration Corporate Governance Practices The Company has adopted and complied with the applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the HKEX Listing Rules throughout the six months ended June 30, 2025 - The Company has adopted the principles of the Corporate Governance Code set out in Appendix C1 of the HKEX Listing Rules and has complied with the applicable code provisions of the Corporate Governance Code throughout the six months ended June 30, 2025[109] Audit Committee The Company has established an Audit Committee in accordance with the Listing Rules, responsible for reviewing and overseeing the Group's financial reporting, risk management, and internal controls, and has reviewed the unaudited interim condensed consolidated financial statements for H1 2025 - The Audit Committee, comprising three independent non-executive directors Dr. Su Lixin, Dr. Xu Shiqing, and Mr. Wang Ruzhang, has reviewed the Group's unaudited interim condensed consolidated financial statements for the six months ended June 30, 2025[110] Standard Code for Securities Transactions by Directors The Company has adopted its own code of conduct for directors' securities transactions, no less stringent than the Standard Code in Appendix C3 of the Listing Rules, and all directors confirmed compliance throughout H1 2025 - The Company has adopted its own code of conduct for directors' dealings in the Company's securities, the terms of which are no less stringent than the Standard Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules[111] - Following specific enquiries, all directors confirmed compliance with the required standards of dealing set out in the code of conduct and the Standard Code throughout the six months ended June 30, 2025[111] Purchase, Sale or Redemption of the Company's Listed Securities For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's shares[112] Significant Post-Balance Sheet Events No significant post-balance sheet events have occurred from June 30, 2025, up to the date of this announcement - No significant post-balance sheet events have occurred from June 30, 2025, up to the date of this announcement[113] Interim Dividend The Board of Directors did not declare any interim dividend for the six months ended June 30, 2025 - The Board of Directors did not declare any interim dividend for the six months ended June 30, 2025 (2024: nil)[114] Board of Directors As of the date of this announcement, the Board of Directors comprises executive directors Mr. Li Hongwei (Chairman), Mr. Wu Rong (Vice Chairman), Mr. Qiu Wenhe (Vice Chairman), Mr. Liu Genyu, Mr. Li Xiaofeng, and Ms. Du Ruili, and independent non-executive directors Dr. Xu Shiqing, Dr. Su Lixin, and Mr. Wang Ruzhang - As of the date of this announcement, the executive directors are Mr. Li Hongwei (Chairman), Mr. Wu Rong (Vice Chairman), Mr. Qiu Wenhe (Vice Chairman), Mr. Liu Genyu, Mr. Li Xiaofeng, and Ms. Du Ruili; and the independent non-executive directors are Dr. Xu Shiqing, Dr. Su Lixin, and Mr. Wang Ruzhang[116]