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水发兴业能源(00750) - 2025 - 中期业绩
SFSY ENERGYSFSY ENERGY(HK:00750)2025-08-27 14:57

Company Information and Financial Summary This section provides an overview of China Shuifa Singyes Energy Holdings Limited's basic information and a summary of its financial performance for the six months ended June 30, 2025 Company Basic Information China Shuifa Singyes Energy Holdings Limited announced its unaudited interim results for the six months ended June 30, 2025 - Company Name: China Shuifa Singyes Energy Holdings Limited2 - Reporting Period: Six months ended June 30, 20252 - Report Nature: Unaudited interim results announcement2 Financial Summary During the reporting period, the company's revenue increased by 22.45% year-on-year, but due to a decrease in gross profit margin, loss attributable to owners of the company expanded to RMB 19,184 thousands, with a loss per share of RMB (0.008) Financial Summary for the Six Months Ended June 30 | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,684,853 | 1,375,933 | 22.45% | | Profit before income tax | 7,935 | 36,037 | -77.98% | | Income tax expense | 5,562 | 24,900 | -77.66% | | Loss attributable to owners of the company for the period | (19,184) | (16,461) | 16.54% | | Loss per share attributable to owners of the company (basic and diluted) | RMB (0.008) | RMB (0.007) | 14.29% | Condensed Consolidated Financial Statements This section presents the company's condensed consolidated financial statements, including the statement of comprehensive income and statement of financial position Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the company's revenue increased to RMB 1,684,853 thousands, but a significant rise in cost of sales led to a decrease in gross profit; operating profit and profit before income tax both significantly decreased, resulting in a profit for the period of RMB 2,373 thousands, a 78.7% year-on-year decline Key Data from Condensed Consolidated Statement of Comprehensive Income | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,684,853 | 1,375,933 | 22.45% | | Cost of sales | (1,330,524) | (931,075) | 42.90% | | Gross profit | 354,329 | 444,858 | -20.35% | | Operating profit | 228,530 | 293,577 | -22.23% | | Net finance costs | (220,138) | (257,688) | -14.57% | | Profit before income tax | 7,935 | 36,037 | -77.98% | | Income tax expense | (5,562) | (24,900) | -77.66% | | Profit for the period | 2,373 | 11,137 | -78.70% | | Loss attributable to owners of the company for the period | (19,184) | (16,461) | 16.54% | | Profit attributable to non-controlling interests for the period | 21,557 | 27,598 | -21.90% | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the company's total assets slightly decreased, primarily due to a reduction in cash and cash equivalents; non-current liabilities increased while current liabilities decreased, leading to a slight decline in total liabilities; both equity attributable to owners of the company and non-controlling interests decreased, resulting in a lower total equity Key Data from Condensed Consolidated Statement of Financial Position | Metric | 2025年6月30日 (RMB thousands) | 2024年12月31日 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Assets | | | | | Total non-current assets | 8,956,216 | 8,803,397 | 1.74% | | Total current assets | 13,521,944 | 14,002,485 | -3.30% | | Cash and cash equivalents | 270,257 | 823,022 | -67.17% | | Total assets | 22,478,160 | 22,805,882 | -1.44% | | Equity | | | | | Equity attributable to owners of the company | 4,167,325 | 4,231,924 | -1.53% | | Non-controlling interests | 1,094,333 | 1,071,825 | 2.10% | | Total equity | 5,261,658 | 5,303,749 | -0.79% | | Liabilities | | | | | Total non-current liabilities | 5,491,740 | 5,074,520 | 8.22% | | Total current liabilities | 11,724,762 | 12,427,613 | -5.66% | | Total liabilities | 17,216,502 | 17,502,133 | -1.63% | Notes to the Condensed Consolidated Financial Statements This section provides detailed notes to the condensed consolidated financial statements, covering general information, accounting policies, segment data, and other financial disclosures General Information The company was incorporated in Bermuda, primarily engaged in traditional curtain walls, wind farm construction, and the design, manufacturing, supply, and installation of solar photovoltaic building integrated systems, as well as the manufacturing and sale of solar products; there was no significant change in the nature of its principal business during the reporting period, and its ultimate holding company is Shuifa Group Co., Ltd., a Chinese state-owned enterprise - The company was incorporated in Bermuda on October 24, 20038 - Principal businesses include traditional curtain walls, wind farm construction, design, manufacturing, supply and installation of solar photovoltaic building integrated systems, and manufacturing and sale of solar products8 - The ultimate holding company is Shuifa Group Co., Ltd., a state-owned enterprise in China9 Basis of Preparation The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 and the Listing Rules of the Hong Kong Stock Exchange, adopting the going concern basis of accounting - Prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' and the Listing Rules of the Hong Kong Stock Exchange10 - Accounting basis: Going concern10 Accounting Policies The condensed consolidated financial statements are prepared on a historical cost basis and presented in RMB; during the reporting period, IAS 21 (Amendment) 'Lack of Exchangeability' was first applied, but it had no significant impact on the financial position and performance - Basis of preparation: Historical cost basis, except for certain equity investments and financial assets measured at fair value11 - Presentation currency: RMB11 - Newly applied accounting standard: IAS 21 (Amendment) 'Lack of Exchangeability', with no significant impact12 Revenue and Segment Information The company assesses performance based on four main business segments: construction services, product sales, electricity sales, and others; in the first half of 2025, construction services revenue significantly increased, but product sales revenue decreased, leading to a year-on-year reduction in gross profit - Operating segments: Construction services, product sales, electricity sales, others13 Segment Performance Overview (For the Six Months Ended June 30) | Segment | 2025 Revenue (RMB thousands) | 2025 Gross Profit (RMB thousands) | 2024 Revenue (RMB thousands) | 2024 Gross Profit (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Construction services | 1,032,373 | 57,841 | 570,211 | 88,498 | | Product sales | 303,808 | 115,272 | 419,657 | 143,532 | | Electricity sales | 329,087 | 184,187 | 328,733 | 184,033 | | Others | 19,585 | 6,651 | 57,332 | 42,620 | | Group total | 1,684,853 | 354,329 | 1,375,933 | 444,858 | Income Tax Expense Subsidiaries in mainland China are subject to a 25% corporate income tax rate, with some eligible for preferential rates of 15% or 'three-year exemption and three-year half reduction' for high-tech enterprises, encouraged industries in western regions, or solar power station projects; Hong Kong subsidiaries are taxed at 16.5%; income tax expense significantly decreased year-on-year during the reporting period - Corporate income tax rate in mainland China: 25%, with some eligible companies enjoying 15% or “three-year exemption and three-year half reduction” preferential rates16 - Hong Kong subsidiaries' tax rate: 16.5%17 Income Tax Expense (For the Six Months Ended June 30) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current income tax | 14,254 | 38,864 | | Deferred income tax credit | (8,692) | (13,964) | | Income tax expense | 5,562 | 24,900 | Loss Per Share For the six months ended June 30, 2025, basic loss per share attributable to owners of the company was RMB (0.008), an increase from the same period last year; no diluted adjustment was made as the exercise price of unexercised share options was higher than the average market price of the company's shares - Basic loss per share is calculated based on the loss attributable to owners of the company and the weighted average number of ordinary shares outstanding19 - No diluted adjustment was made because the exercise price of share options was higher than the average market price19 Loss Per Share (For the Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Loss attributable to owners of the company (RMB thousands) | (19,184) | (16,461) | | Weighted average number of ordinary shares outstanding (thousands) | 2,521,082 | 2,521,082 | | Basic loss per share (RMB) | (0.008) | (0.007) | Dividends The Board of Directors does not recommend the payment of an interim dividend for the reporting period, consistent with the same period last year - The Directors do not recommend the payment of an interim dividend for the current period (2024: nil)21 Trade and Bills Receivables As of June 30, 2025, total trade receivables amounted to RMB 5,616,181 thousands, a slight decrease from the end of 2024; total electricity tariff subsidies receivable amounted to RMB 2,270,104 thousands, an increase from the end of 2024 Aging Analysis of Trade Receivables and Electricity Tariff Subsidies Receivable | Aging | Trade receivables (2025年6月30日, RMB thousands) | Trade receivables (2024年12月31日, RMB thousands) | Electricity tariff subsidies receivable (2025年6月30日, RMB thousands) | Electricity tariff subsidies receivable (2024年12月31日, RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Within 180 days | 1,325,269 | 2,140,944 | 168,076 | 236,787 | | 181-365 days | 1,049,751 | 318,093 | 236,787 | 213,183 | | One to two years | 1,003,904 | 709,111 | 213,183 | 465,021 | | Two to three years | 444,859 | 761,886 | 465,021 | 469,382 | | Over three years | 1,792,398 | 1,855,918 | 1,187,037 | 720,385 | | Total | 5,616,181 | 5,785,952 | 2,270,104 | 2,104,758 | Trade and Bills Payables As of June 30, 2025, total trade and bills payables amounted to RMB 4,289,401 thousands, a slight decrease from the end of 2024 Aging Analysis of Trade and Bills Payables | Aging | 2025年6月30日 (RMB thousands) | 2024年12月31日 (RMB thousands) | | :--- | :--- | :--- | | Within three months | 1,106,970 | 1,828,913 | | Three to six months | 391,576 | 582,326 | | Six to twelve months | 1,286,081 | 301,462 | | One to two years | 617,889 | 799,289 | | Two to three years | 464,633 | 606,410 | | Over three years | 422,252 | 207,067 | | Total | 4,289,401 | 4,325,467 | Share Capital During the reporting period, there was no change in the company's issued share capital, with both authorized and issued and fully paid share capital remaining stable - The company's issued share capital remained unchanged during the period23 Share Capital Information | Metric | 2025年6月30日 (thousands) | 2024年12月31日 (thousands) | | :--- | :--- | :--- | | Authorized share capital (3,200,000,000 ordinary shares of USD 0.01 each) | USD 32,000 | USD 32,000 | | Issued and fully paid share capital (2,521,081,780 ordinary shares of USD 0.01 each) | USD 25,211 | USD 25,211 | | Equivalent to RMB thousands | 174,333 | 174,333 | Business and Financial Review This section provides a comprehensive review of the company's business operations and financial performance during the reporting period Performance Overview During the reporting period, the company's revenue increased by 22.5% year-on-year to RMB 1.685 billion, primarily driven by increased clean energy EPC revenue; however, the overall gross profit margin decreased from 32.3% in the same period last year to 21.0%, leading to an expanded loss attributable to owners of the company of RMB 19.18 million; net cash generated from operating activities significantly increased by 223.3%, and finance costs decreased by 14.6% - Revenue increased by 22.5% year-on-year to RMB 1.685 billion, primarily due to increased clean energy EPC revenue24 - Loss attributable to owners of the company was RMB 19.18 million, mainly due to the overall gross profit margin decreasing from 32.3% in the same period last year to 21.0%24 - Net cash generated from operating activities significantly increased by 223.3% to RMB 286 million, primarily due to timely collection from key projects and centralized procurement27 - Finance costs decreased by 14.6% year-on-year27 - New contracts signed and uncompleted projects under construction amounted to approximately RMB 4 billion28 Business Review The company continues to focus on the clean energy sector, intensifying efforts to expand solar and wind EPC projects, and actively fostering new business formats such as high-end curtain walls, smart energy-saving buildings, and new materials; concurrently, it proactively adjusted its business structure, reducing the proportion of traditional glass curtain wall business to adapt to market changes - The company focuses on its core business, consolidating the development, investment, construction, and operation of photovoltaic and wind power projects, while strengthening strategic layout and resource acquisition29 - Actively cultivating new business formats such as high-end curtain walls, smart energy-saving buildings, and new materials industries29 - Proactively adjusted business structure, reducing the traditional glass curtain wall business segment to mitigate the impact of the real estate market25 Revenue Classification Clean energy EPC revenue significantly increased by 143.6%, becoming the main growth driver, while revenue from curtain walls and green buildings, and product sales decreased Revenue Classification (For the Six Months Ended June 30) | Revenue Category | 2025 (RMB millions) | 2024 (RMB millions) | Increase / (Decrease) (%) | Revenue Share (%) | | :--- | :--- | :--- | :--- | :--- | | Clean Energy EPC | 835.2 | 342.8 | 143.6 | 49.6 | | Curtain Walls and Green Buildings | 197.2 | 227.4 | (13.3) | 11.7 | | Electricity Sales | 329.1 | 328.7 | 0.1 | 19.5 | | Product Sales | 303.8 | 419.7 | (27.6) | 18.0 | | Others | 19.6 | 57.3 | (65.8) | 1.2 | | Total Revenue | 1,684.9 | 1,375.9 | 22.5 | 100.0 | Clean Energy EPC Business Clean energy EPC revenue significantly increased by 143.7% year-on-year, benefiting from the effective utilization of its Grade-A qualification for general contracting of power engineering construction, securing multiple large-scale clean energy EPC contracts, and successfully completing project construction and grid connection - Clean energy EPC revenue significantly increased by 143.7% compared to the same period last year31 - Successfully undertook the Hainan 62MW project and multiple "PV + aquaculture" projects in Shandong, and signed several large-scale clean energy EPC contracts in Xi'an, Hainan, and Shandong31 - The "Blue Sail Project" distributed photovoltaic project, in cooperation with CSSC Group, achieved a cumulative grid-connected capacity exceeding 100 MW31 Overseas Market Expansion The company achieved fruitful results in overseas markets such as Hong Kong, Australia, Japan, and Africa, including the Hong Kong Airport green building project, the upgrade of Sydney's landmark buildings, the completion of Japan's first photovoltaic power station cluster project, and the advancement of projects in 'Belt and Road' countries in Africa - Steadily advanced the Hong Kong Airport green building project in the Hong Kong market and successfully won the bid for the Hong Kong Environmental Protection Department's Outlying Islands photovoltaic power station project32 - Participated in the upgrade of a century-old landmark building in Sydney, Australia, focusing on green building low-carbon design32 - Successfully completed its first photovoltaic power station cluster project undertaken in the Japanese market32 - In the African market, the Angola government building curtain wall project progressed smoothly, reached a consensus with Kenya on solar and wind power supply solutions, and secured a new small-scale ground photovoltaic power station project in Tanzania32 Curtain Walls and Green Buildings Business Total revenue from curtain walls and green buildings business decreased by 13.3% year-on-year, primarily due to the company's proactive adjustment of its business strategy to reduce the proportion of traditional curtain wall business, thereby mitigating the negative impact of the real estate industry - Total revenue from curtain walls and green buildings business decreased by 13.3% compared to the same period last year33 - The decrease was mainly due to the company's proactive adjustment of its business strategy to reduce the proportion of traditional curtain wall business revenue33 Electricity Sales Business Total electricity sales revenue slightly increased by 0.1% year-on-year, with business volume remaining stable; the company's self-owned power stations exceed 1.27 GW in scale, and power generation increased by 6.8% year-on-year - Total electricity sales revenue slightly increased by 0.1% compared to the same period last year, with business volume remaining stable33 - Self-owned power stations exceed 1.27 GW in scale, including 31 distributed and centralized ground photovoltaic power stations in mainland China and one overseas photovoltaic power station33 - Power generation in the first half of 2025 was 509.3 million kWh, an increase of 6.8% compared to the same period in 202433 Product Sales Business Total product sales revenue decreased by 27.6% year-on-year, primarily due to a decline in solar product sales revenue - Total product sales revenue decreased by 27.6% compared to the same period last year34 - The decrease was mainly due to a decline in sales revenue of solar products (photovoltaic modules, inverters, etc)34 Financial Review During the reporting period, the company's revenue grew, but gross profit margin decreased year-on-year; other income and gains significantly increased, distribution expenses slightly rose, and administrative expenses decreased; capital expenditure increased, mainly for self-owned power station construction; the company's liquidity primarily came from project revenue, borrowings, and advances from Shuifa Group, with a debt structure dominated by long-term interest-bearing liabilities; one equity disposal was completed during the period, with no other significant mergers and acquisitions Revenue During the reporting period, the company's revenue reached RMB 1.685 billion, a year-on-year increase of 22.5%, primarily driven by the clean energy EPC business - Revenue for the reporting period was RMB 1.685 billion, an increase of 22.5% compared to the same period last year35 - Clean energy EPC revenue was RMB 835.20 million, a year-on-year increase of 143.6%, accounting for 49.6% of total revenue35 Gross Profit Margin The overall gross profit margin for the reporting period was approximately 21.0%, a year-on-year decrease of 11.3%, but an improvement from 16.8% at the end of 2024; gross profit margins for both clean energy EPC and curtain walls and green buildings businesses significantly declined - The overall gross profit margin for the reporting period was approximately 21.0%, a year-on-year decrease of 11.3% compared to 2024, but an improvement from 16.8% at the end of 20243626 Segment Gross Profit Margin Overview | Segment | For the Six Months Ended 2025年6月30日 (%) | For the Year Ended 2024年12月31日 (%) | For the Six Months Ended 2024年6月30日 (%) | | :--- | :--- | :--- | :--- | | Clean Energy EPC | 5.0 | 4.8 | 20.7 | | Curtain Walls and Green Buildings | 3.4 | 0.6 | 7.7 | | Subtotal for Construction Contracts | 4.7 | 4.1 | 15.5 | | Electricity Sales | 56.0 | 56.0 | 56.0 | | Product Sales | 37.9 | 28.1 | 34.2 | | Others | 34.0 | 67.0 | 50.4 | Other Income and Gains Total other income and gains increased by RMB 20.41 million or 66.2% during the reporting period, primarily due to compensation for design consulting fees, increased rental income from properties, and gains from reduced bond interest rates - Other income and gains increased by RMB 20.41 million or 66.2% compared to the same period last year38 - The main reasons include compensation for design consulting fees, increased rental income from properties, and gains from reduced bond interest rates38 Distribution Expenses Distribution expenses increased by RMB 0.963 million or 4.7% compared to the same period last year, mainly due to increased business expenses resulting from intensified domestic and international market expansion efforts - Distribution expenses increased by RMB 0.963 million or 4.7% compared to the same period last year39 - The main reason was increased business expenses due to intensified domestic and international market expansion efforts39 Administrative Expenses Administrative expenses decreased by RMB 6.58 million or 4.7% compared to the same period last year, primarily attributable to the improvement of human resource and remuneration systems, and strengthened control over travel and office expenses - Administrative expenses decreased by RMB 6.58 million or 4.7% compared to the same period last year40 - Primarily attributable to the improvement of human resource and remuneration systems, and strengthened control over travel and office expenses40 Liquidity and Financial Resources The company's funds primarily originate from project contracts, product and electricity sales revenue, bank and other borrowings, bond issuance, and advances from Shuifa Group; as of the end of the reporting period, outstanding bank and other loans amounted to approximately RMB 6.482 billion, and outstanding bonds were approximately RMB 1.518 billion - Principal funding sources include receivables from project contracts, product sales and electricity sales revenue, bank and other borrowings, bond issuance, and advances from Shuifa Group41 - As of June 30, 2025, outstanding bank and other loans amounted to approximately RMB 6.482 billion41 - As of June 30, 2025, outstanding bonds amounted to approximately RMB 1.518 billion41 Capital Expenditure Capital expenditure for the reporting period was RMB 285 million, primarily for the construction of self-owned power stations, an increase from the same period last year - Capital expenditure for the reporting period was RMB 285 million, primarily for the construction of self-owned power stations, including large-scale photovoltaic power stations such as Hubei Gucheng42 - This represents an increase from capital expenditure of RMB 218 million in the same period of 202442 Bonds, Bank and Other Borrowings As of June 30, 2025, the company's bonds, bank, and other borrowings totaled RMB 8 billion, with 75.4% being interest-bearing liabilities with a maturity of over three years - As of June 30, 2025, bonds, bank, and other borrowings totaled RMB 8 billion43 Loan Maturity Structure | Maturity | Percentage (%) | | :--- | :--- | | Within one year | 10.4 | | One to three years (inclusive) | 14.2 | | Over three years | 75.4 | Loan Categories and Interest Rate Ranges | Category | Amount (RMB billions) | Interest Rate Range | | :--- | :--- | :--- | | Bonds | 1.518 | 3.45%–3.80% | | Bank Borrowings | 2.400 | 2.80%–4.85% | | Finance Leases | 4.082 | 3.60%–6.37% | | Total | 8.000 | | Contingent Liabilities As of June 30, 2025, the company had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities45 Significant Investments, Acquisitions and Disposals During the reporting period, the company disposed of a 48% equity interest (19.2% effective interest) in Shuifa Clean Energy Co., Ltd. to Xinxing New Energy (Guangdong) Investment Co., Ltd.; other than this, there were no other significant mergers, acquisitions, or investments - Disposed of 48% equity interest (19.2% effective interest) in Shuifa Clean Energy Co., Ltd. to Xinxing New Energy (Guangdong) Investment Co., Ltd46 - No other significant acquisitions or disposals of subsidiaries, associates, and jointly controlled entities were undertaken, nor were any significant investments held during the reporting period46 Foreign Currency Risk The company's principal operations are located in mainland China, with most transactions conducted in RMB, resulting in limited foreign currency risk; the company will continue to monitor its foreign exchange position and use hedging instruments to manage risks when necessary - The Group's principal operations are located in mainland China, with most transactions conducted in RMB, resulting in limited foreign exchange risk47 - The Group will continue to monitor its foreign exchange position and use hedging instruments to manage foreign exchange risk when necessary47 Growth Strategies This section outlines the company's strategic initiatives for future growth, focusing on asset optimization, cost reduction, and market expansion across its key business segments Optimizing Asset Structure and Enhancing Gross Profit Margin The company will focus on its core clean energy business, strategically deploying high-return, low-risk quality energy projects through efficient regional and technological combinations; it will optimize EPC costs through lean operations, strengthen electricity market trading capabilities, and improve power station operation and maintenance quality to enhance gross profit margins; concurrently, it will strictly control the quality of new projects and regularly dispose of inefficient or non-performing assets to optimize its asset structure - Focus on the core clean energy business, advance the construction of existing projects, and strategically deploy high-return, low-risk quality energy projects through efficient regional and technological combinations4849 - Drive EPC cost optimization through lean operations, strengthen electricity market trading capabilities, and promote high-quality power station operation and maintenance to enhance gross profit margins49 - Strictly control the quality of new projects, establish and improve a full-process control mechanism, and regularly clear or revitalize inefficient or non-performing assets50 - In the first half, newly grid-connected installed capacity was 281 MWp, with an estimated full-year grid-connected capacity of 577 MWp50 - In the first half, asset disposals saved RMB 12.7 million in expenses and recovered RMB 9.56 million in funds, with an estimated full-year recovery of nearly RMB 40 million50 Reducing Finance Costs The company continuously reduces finance costs and optimizes its debt structure through measures such as covering short-term debt with long-term debt and replacing high-cost funds with low-cost funds; in the first half, it successfully issued RMB 100 million in Panda bonds, with the interest rate reduced to 3.45%; it plans to issue RMB 1 billion in 3-year interbank market bonds in the second half, expected to save approximately RMB 17 million to 22 million in finance costs annually - Continuously reduce finance costs and optimize debt structure by covering short-term debt with long-term debt and replacing high-cost funds with low-cost funds51 - In the first half, successfully issued RMB 100 million in Panda bonds, with the interest rate reduced from 4.5% in 2022 to 3.45%, and the issuance period extended to three years51 - Plans to issue RMB 1 billion in 3-year interbank market bonds in the second half, expected to save approximately RMB 17 million to 22 million in finance costs annually51 - In the first half, the Group's finance costs decreased by 40 basis points, and financial expenses decreased by RMB 39.76 million51 Clean Energy Sector The company will leverage its 'technology customization + local deep cultivation' dual-engine approach to accelerate its global renewable energy footprint, including penetrating the high-end Japanese market, expanding its business presence in Africa, and actively seeking breakthroughs in Central Asian markets to build a multi-country green energy network - Leverage the "technology customization + local deep cultivation" dual-engine approach to accelerate global renewable energy deployment52 - Plans to customize and develop small-scale photovoltaic systems and new pure energy storage power stations to meet Japan's energy transition demands52 - Actively expand its business footprint in the African market, strengthening energy market development efforts in South Africa and Kenya52 - Actively seek breakthroughs in Central Asian markets, collaborating with Kyrgyzstan to promote clean energy development52 Green Building Sector The company will leverage its expertise in overseas curtain walls to focus on 'Belt and Road' countries and emerging markets in Southeast Asia, the Middle East, and Africa, deepening localized cooperation models to further enhance its brand influence in the international construction sector - Utilize its extensive experience and brand influence in overseas curtain walls to focus on "Belt and Road" countries and emerging markets in Southeast Asia, the Middle East, and Africa53 - Deepen localized cooperation models, with overseas curtain wall business gradually expanding from long-term cultivated markets like Hong Kong, Australia, Singapore, and Malaysia to other countries53 - During the reporting period, successfully bid for and signed a contract for the government office building curtain wall project in Angola53 New Materials Business – Upgrade and Transformation The new materials segment will adhere to a 'quality first' strategy, empowering industrial upgrading with technology, comprehensively expanding into the automotive dimming film business and entering international markets, gradually transitioning from architectural film business to automotive film business - The new materials segment will adhere to a "quality first" strategy, empowering industrial upgrading with technology54 - Comprehensively expand into the automotive dimming film business and enter international markets, gradually transitioning from architectural film business to automotive film business54 - The business model will shift towards automotive glass manufacturers such as Fuyao and Saint-Gobain54 Technology Empowerment The company obtained 3 invention patents in new materials, holding a total of 109 valid patents, with some key technical indicators demonstrating international leadership; in the future, it will continue to promote the deep integration of technological innovation and industrial upgrading, accelerating its expansion into high-value-added new materials, focusing on advanced products such as automotive dimming films, high-performance shading black PDLC films, and electrochromic films - Obtained 3 invention patents in new materials during the reporting period, now holding a total of 109 valid patents55 - The front and post-etching processes for etched partitioned dimming products are industry-leading; black PDLC automotive dimming film offers shading and heat insulation performance, addressing side-view haze issues55 - Successfully passed CNAS laboratory testing qualification certification and IATF 16949 system transfer audit55 - In the second half, it will accelerate its expansion into high-value-added new materials, focusing on advanced products such as automotive dimming films, high-performance shading black PDLC films, and electrochromic films56 Other Information This section provides additional information regarding events after the reporting period, employee and remuneration policies, corporate governance, and other relevant disclosures Events After Reporting Period There were no significant events after the reporting period - There were no significant events after the reporting period for the Group57 Employees and Remuneration Policy As of June 30, 2025, the company's total number of employees was 1,012, a decrease from the end of 2024; remuneration policies are consistent with local market practices, including salaries, provident funds, medical insurance, and performance-related bonuses, with potential grants of share options and share awards; in the first half, the company optimized human resource allocation through integration, organizational streamlining, and objective employee management - As of June 30, 2025, the Group's total number of employees was 1,012 (December 31, 2024: 1,072)58 - Remuneration policies are consistent with local market practices where operations are located, including salaries, provident funds, medical insurance, and performance-related bonuses58 - Share options and share awards may also be granted to eligible employees and personnel58 - In the first half, human resource allocation was optimized through the integration and merger of directly managed enterprises, streamlining internal organization, and objective employee management58 Dividends The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025, but will consider future dividend payments in accordance with the dividend policy - The Directors do not recommend the payment of any interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: nil)59 - The Group values shareholder returns and will consider dividend payments in due course in accordance with its dividend policy59 Corporate Governance The company has adopted and complied with the Corporate Governance Code set out in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited - The company has adopted and complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited during the reporting period and up to the date of this announcement60 Standard Code for Securities Transactions by Directors The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and all Directors confirmed compliance with the code throughout the reporting period - The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules61 - All Directors confirmed that they have complied with the required standards set out in the Standard Code and its code of conduct for Directors' securities transactions throughout the reporting period61 Audit Committee The company has established an Audit Committee, comprising three independent non-executive directors, with Mr. Yi Yongfa as Chairman; its primary responsibilities include overseeing the financial reporting process and internal control procedures, and it has reviewed the Group's unaudited interim condensed financial information and interim results - The company has established an Audit Committee in compliance with Rules 3.21 to 3.23 and paragraph D.3 of Appendix C1 of the Listing Rules62 - The Audit Committee comprises three independent non-executive directors, with Mr. Yi Yongfa as Chairman62 - The Audit Committee has reviewed the Group's unaudited interim condensed financial information and interim results for the reporting period62 Purchase, Sale and Redemption of the Company's Listed Securities During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities - Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the reporting period63 Publication of Results Announcement This interim results announcement is available on the HKEX website and the company's website; the interim report will be dispatched to shareholders and published on the respective websites in due course - This interim results announcement is available on the HKEX website http://www.hkexnews.hk and the company's website www.sfsyenergy.com[64](index=64&type=chunk) - The company's 2025 interim report, containing all information required by the Listing Rules, will be dispatched to shareholders and published on the company's and HKEX websites in due course64 Board of Directors Members As of the announcement date, the Board of Directors comprises three executive directors, two non-executive directors, and three independent non-executive directors - Executive Directors: Mr. Zhou Guangyan (Vice Chairman and Acting Chairman), Mr. Guo Peidong, and Mr. Chen Fushan65 - Non-executive Directors: Ms. Wang Suhui and Mr. Hu Xiao65 - Independent Non-executive Directors: Mr. Xiao Chuangying, Mr. Yi Yongfa, and Dr. Tan Hongwei65