协合新能源(00182) - 2025 - 中期财报

Company Information This chapter provides fundamental company information for Concord New Energy Group Limited, including its board members, company secretary, auditor, key financial partners, and registered office addresses - Board members include Mr. Liu Shunxing (Chairman), Ms. Liu Jianhong (Vice Chairman), Mr. Gui Kai (CEO) as executive directors, Mr. Wang Feng as non-executive director, and Ms. Huang Jian, Mr. Fang Zhixi, Mr. Zhang Zhong, Ms. Li Yongli, Mr. Cai Bin as independent non-executive directors[5] - Company Secretary is Mr. Chan Kam Kwun, and the auditor is KPMG[5] - Key financial institution partners include Industrial and Commercial Bank of China, China Construction Bank, Bank of China, DBS Bank, and Bank of East Asia[5] Management Discussion and Analysis This chapter reviews the Group's operating environment, business performance, strategic adjustments, ESG, human resources, and future outlook for the first half of 2025 I. Operating Environment The global renewable energy sector saw rapid growth in H1 2025, driven by AI and easing financing, while China faced grid absorption issues and declining electricity prices - Global renewable energy investment is projected to increase by 2% to $2.2 trillion year-on-year in the first half of 2025, with China, the US, and the EU as major investment regions[8] - Rapid development of artificial intelligence drives global AI data center investment growth, becoming a key driver for renewable energy power investment and grid construction[8] - As of June 30, 2025, China's cumulative wind and solar installed capacity reached 1.67 billion kW, historically surpassing thermal power, but insufficient grid absorption in new energy-rich regions led to severe wind and solar curtailment and downward pressure on electricity prices[8] - The Chinese government accelerated electricity market reforms, promoting comprehensive market entry for new energy and improving the green certificate consumption system, leading to a rebound in green certificate prices[9] - The global financing environment is easing, with the Federal Reserve expected to cut interest rates in the second half of the year, the European Central Bank having cut rates four times, and the People's Bank of China lowering the five-year LPR, which is favorable for reducing renewable energy power plant financing costs[14] II. Business Review The Group's revenue and profit declined in H1 2025 due to power curtailment and lower electricity prices, prompting strategic adjustments focused on quality, efficiency, and capital platform expansion 2025 H1 Key Financial Data (Consolidated Statement) | Indicator | 2025 H1 (thousand RMB) | 2024 H1 (thousand RMB) | Change Rate | | :--- | :--- | :--- | :--- | | Revenue | 1,400,319 | 1,498,857 | -6.6% | | Profit attributable to equity holders of the Company | 281,940 | 501,370 | -43.8% | | Basic earnings per share (RMB cents) | 3.58 | 6.24 | -42.6% | | Diluted earnings per share (RMB cents) | 3.58 | 6.23 | -42.6% | Asset-Liability Ratio and Net Asset Per Share | Indicator | June 30, 2025 | December 31, 2024 | Change Rate | | :--- | :--- | :--- | :--- | | Net Assets (thousand RMB) | 8,900,049 | 8,906,306 | -0.07% | | Net Assets Per Share attributable to equity holders of the Company (RMB) | 1.11 | 1.09 | +1.83% | | Asset-Liability Ratio | 73.20% | 72.28% | +0.92pp | - The Group adjusted its development strategy in response to environmental changes, aiming to enhance earnings certainty and strengthen the enterprise, emphasizing quality and prudent development[15] - The Group focused on consolidating and strengthening its power trading capabilities, vigorously promoting power marketing, and enhancing green power trading and green certificate sales[15] (1) Stable Power Generation, Revenue and Profit Under Pressure Despite increased installed capacity, power generation remained flat, leading to a decline in revenue and net profit due to curtailment and lower electricity prices Attributable Installed Capacity (MW) | Technology Type | 2025 H1 | 2024 H1 | Change Rate | | :--- | :--- | :--- | :--- | | Wind Power | 3,844 | 3,467 | 10.9% | | Solar Power | 934 | 583 | 60.2% | | Total | 4,778 | 4,050 | 18.0% | Attributable Power Generation (GWh) | Technology Type | 2025 H1 | 2024 H1 | Change Rate | | :--- | :--- | :--- | :--- | | Wind Power | 4,155 | 4,266 | -2.6% | | Solar Power | 604 | 472 | 28.0% | | Total | 4,759 | 4,738 | 0.4% | Weighted Average Utilization Hours of Power Plants Invested by the Group (Hours) | Technology Type | 2025 H1 | 2024 H1 | Change Rate | | :--- | :--- | :--- | :--- | | Wind Power | 1,142 | 1,220 | -6.4% | | Solar Power | 531 | 659 | -19.3% | - The Group's invested wind power plants had an average curtailment rate of 12.9%, and solar power plants had an average curtailment rate of 32.6%[21] Power Plant Revenue and Net Profit (RMB: Thousand) | | 2025 H1 | 2024 H1 | Change Rate | | :--- | :--- | :--- | :--- | | Controlled subsidiary power plant revenue | 1,335,393 | 1,364,318 | -2.1% | | Of which: Wind Power | 1,115,501 | 1,176,495 | -5.2% | | Of which: Solar Power | 219,892 | 187,823 | 17.1% | | Controlled subsidiary power plant net profit | 350,200 | 490,557 | -28.6% | | Of which: Wind Power | 303,384 | 461,244 | -34.2% | | Of which: Solar Power | 46,816 | 29,313 | 59.7% | | Joint ventures and associates net profit | 87,606 | 94,978 | -7.8% | | Of which: Wind Power | 86,159 | 92,410 | -6.8% | | Of which: Solar Power | 1,447 | 2,568 | -43.7% | Average Comprehensive Electricity Price of Power Plants (RMB/kWh, including VAT) | Technology Type | 2025 H1 | 2024 H1 | Change Amount | | :--- | :--- | :--- | :--- | | Wind Power | 0.3653 | 0.3838 | -0.0185 | | Solar Power | 0.4278 | 0.4714 | -0.0436 | - The Group's power loss due to equipment failure decreased by 40% year-on-year; green power trading volume increased by 26% compared to the same period[23] (2) Prioritizing Efficiency, Focusing on Development Quality, Projects Commissioned on Schedule The Group pursued value-oriented development, acquiring new projects in key markets and commissioning 191 MW of capacity while optimizing costs - The Group acquired 600 MW of new wind power investment projects (annual construction targets) in China[26] - Acquired 152.5 MW of solar power projects and 300 MW of energy storage projects outside China[26] - In the first half of 2025, the Group added 191 MW of attributable installed capacity, including 140 MW of wind power and 51 MW of solar power[29] - Through optimized design and refined management, several projects won the "Beijing Survey, Design and Excellent Achievement Award," achieving reasonable cost reduction[29] (3) Adapting to Change, Strengthening Management, Reducing Costs and Increasing Efficiency The Group adjusted strategies, enhanced AI capabilities in operations, reduced management expenses, lowered financing costs, and initiated a secondary listing in Singapore - The Group focused on strengthening AI research and capability building in areas such as power trading and power plant operations[30] - Management expenses decreased year-on-year through measures such as budget planning control and approval process management[31] - The average financing cost for the Group's new drawdowns decreased to 3.15%, and the Group's overall financing cost decreased to 3.63%, both at relatively low levels[32] - The Group initiated a secondary listing in Singapore in February 2025 to broaden its capital platform and enhance its global market image[33] III. Environmental and Social Responsibility The Group integrates sustainable development into its strategy, providing green power and achieving "Top 5%" ESG recognition in S&P Global's 2025 Yearbook - The Group firmly integrates sustainable development concepts into strategic decision-making and daily operations, viewing them as a core driver for creating long-term value[34] Power Plant Emission Reductions | Emission Indicator | 2025 H1 | Cumulative | | :--- | :--- | :--- | | CO2 (thousand tons) | 4,534 | 66,249 | | SO2 (tons) | 1,131 | 32,870 | | NOx (tons) | 1,180 | 30,841 | | Standard Coal Saved (thousand tons) | 1,854 | 26,051 | | Water Saved (thousand tons) | 7,320 | 133,458 | - The Group was once again successfully selected for S&P Global's "Sustainability Yearbook (China Edition) 2025" and, based on its leading ESG performance, was awarded the "Top 5%" distinction[34] IV. Human Resources The Group strengthened talent development, fostered university partnerships, optimized organizational structure, and increased revenue per employee by 10.4% - The Group deepened strategic cooperation and technical exchanges with the National University of Singapore and North China Electric Power University to jointly cultivate talent[37] - The Group's revenue per employee increased by 10.4% year-on-year[37] - As of June 30, 2025, the Group had 736 full-time employees[37] V. Outlook The Group anticipates continued AI-driven electricity demand and easing financing, focusing on operational optimization, market expansion, and cost efficiency - Artificial intelligence is expected to continue stimulating strong electricity demand growth, driving global energy transition[38] - Global inflation is falling, developed economies are expected to cut interest rates, and the People's Bank of China will continue to implement a moderately loose monetary policy, which is favorable for renewable energy investment[38] - The Group will adopt "strengthening the Group and increasing assets with earnings certainty" as its core philosophy for formulating and implementing new development strategies[39] - Key tasks include: meticulously optimizing power plant operations (e.g., "AI + Data Decision-making" model), vigorously building power trading and marketing capabilities (e.g., green power trading, green certificate sales), focusing on project quality and earnings certainty, anchoring milestone targets to advance project construction, actively expanding global business, exploring new business models such as power sales and virtual power plants, and continuously strengthening refined and specialized management to reduce costs and increase efficiency[39][40][41][42][44][45][46] Directors' Report This chapter details directors' and major shareholders' interests, reviews the share award scheme, reports share repurchases, and confirms corporate governance compliance Interests and/or Short Positions of Directors and Chief Executives in Shares, Underlying Shares and Debentures of the Company or any Associated Corporation As of June 30, 2025, the Company's directors and chief executives held long positions in the Company's shares, with Chairman Liu Shunxing holding 22.75% of issued capital Long Positions in the Company's Shares as at June 30, 2025 | Director Name | Personal (shares) | Corporate (shares) | Total (shares) | Approximate % of total issued share capital | | :--- | :--- | :--- | :--- | :--- | | Liu Shunxing | 37,500,000 | 1,754,714,242 | 1,792,214,242 | 22.75% | | Liu Jianhong | 29,710,000 | 150,000,000 | 179,710,000 | 2.28% | | Gui Kai | 15,600,000 | — | 15,600,000 | 0.20% | | Niu Wenhui | 16,000,000 | — | 16,000,000 | 0.20% | | Zhai Feng | 4,000,000 | — | 4,000,000 | 0.05% | | Shang Jia | 8,000,000 | — | 8,000,000 | 0.10% | | Chan Kam Kwun | 3,800,000 | — | 3,800,000 | 0.05% | | Huang Jian | 2,800,000 | — | 2,800,000 | 0.04% | | Fang Zhixi | 2,600,000 | — | 2,600,000 | 0.03% | | Zhang Zhong | 2,800,000 | — | 2,800,000 | 0.04% | Share Award Scheme The 2015 share award scheme expired on June 15, 2025, with 17,250,000 unvested shares vesting in February 2025 and no new grants or cancellations - The share award scheme expired on June 15, 2025[52][60] - For the six months ended June 30, 2025, no awarded shares were granted, cancelled, or lapsed[54][61] - 17,250,000 unvested shares held by the trustee vested on February 17, 2025, and the trustee held no outstanding unvested shares at period-end[55][61] Directors' Rights to Acquire Shares The Company confirms no arrangements were made during the period for directors to profit from acquiring shares or related securities of the Company or its associates - During this period, neither the Company nor any of its subsidiaries or associated corporations entered into any arrangements enabling directors to benefit from acquiring shares, underlying shares, or debentures of the Company or any associated corporation[62] Major Shareholders As of June 30, 2025, CWPI, Huadian New Energy, and Splendor Power Limited were the Company's major shareholders, holding significant portions of its issued share capital Long Positions in the Company's Shares as at June 30, 2025 | Shareholder Name | Number of Shares held by the Company | Approximate % of total issued share capital | | :--- | :--- | :--- | | CWPI | 1,002,877,155 | 12.73% | | Huadian New Energy | 880,000,000 | 11.17% | | Splendor Power Limited | 751,837,087 | 9.54% | Company's Purchase, Sale or Redemption of Listed Securities The Company repurchased and cancelled 104,360,000 ordinary shares for HK$45,250,000 on the HKEX during H1 2025, holding no treasury shares Details of Share Repurchases | Month | Number | Highest Price (HK$) | Lowest Price (HK$) | Total Amount (HK$) | | :--- | :--- | :--- | :--- | :--- | | February 2025 | 8,970,000 | 0.480 | 0.470 | 4,259,600 | | April 2025 | 95,390,000 | 0.445 | 0.415 | 40,990,400 | | Total | 104,360,000 | | | 45,250,000 | - All repurchased shares were subsequently cancelled, resulting in a corresponding reduction in the par value of the Company's issued share capital[67] - For the six months ended June 30, 2025, the Company held no treasury shares[67] Corporate Governance Code The Board confirmed the Company's compliance with the Corporate Governance Code outlined in Appendix C1 of the Listing Rules for H1 2025 - The Board confirmed that the Company has complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules[68] Model Code for Securities Transactions by Directors All directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers for the six months ended June 30, 2025 - All directors of the Company confirmed their compliance with the required standards set out in the Model Code for the six months ended June 30, 2025[70] Audit Committee The Audit Committee, composed of three independent non-executive directors, reviewed the unaudited interim financial statements, which KPMG also reviewed per HKSRS 2410 - The Audit Committee comprises Ms. Huang Jian (Chairperson), Mr. Zhang Zhong, and Ms. Li Yongli, three independent non-executive directors[71] - The Audit Committee has reviewed the Group's unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025[71] - KPMG has performed a review of the interim financial statements in accordance with Hong Kong Standard on Review Engagements 2410[71] Independent Auditor's Report KPMG reviewed the interim consolidated financial report for H1 2025, finding no material non-compliance with Hong Kong Accounting Standard 34 - KPMG reviewed the interim financial report in accordance with Hong Kong Standard on Review Engagements 2410[74] - The review concluded that no matters were found that caused the auditor to believe the interim financial report was not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[75] Consolidated Financial Statements This chapter presents the Group's unaudited condensed consolidated financial statements for H1 2025, detailing financial performance, position, and cash flows Consolidated Statement of Profit or Loss The Group's revenue and profit attributable to shareholders significantly declined in H1 2025, driven by lower gross profit, reduced other income, and a shift to income tax expense Consolidated Statement of Profit or Loss (thousand RMB) | Indicator | 2025 H1 | 2024 H1 | Change Rate | | :--- | :--- | :--- | :--- | | Revenue | 1,400,319 | 1,498,857 | -6.6% | | Cost of services and cost of sales | (731,290) | (646,764) | 13.1% | | Gross profit | 669,029 | 852,093 | -21.4% | | Other income | 53,960 | 76,577 | -29.6% | | Other gains and losses, net | 24,070 | (724) | N/A | | Finance costs | (315,461) | (340,563) | -7.4% | | Share of profits of joint ventures, net | 82,550 | 94,466 | -12.6% | | Share of profits of associates, net | (825) | 8,205 | N/A | | Profit before income tax | 346,511 | 521,361 | -33.5% | | Income tax (expense) / credit | (54,472) | 26,097 | N/A | | Profit for the period | 292,039 | 547,458 | -46.7% | | Attributable to equity holders of the Company | 281,940 | 501,370 | -43.8% | | Basic earnings per share (RMB cents) | 3.58 | 6.24 | -42.6% | | Diluted earnings per share (RMB cents) | 3.58 | 6.23 | -42.6% | Consolidated Statement of Profit or Loss and Other Comprehensive Income Total comprehensive income for H1 2025 decreased by 43.9% due to lower profit, partially offset by positive currency translation differences Consolidated Statement of Profit or Loss and Other Comprehensive Income (thousand RMB) | Indicator | 2025 H1 | 2024 H1 | Change Rate | | :--- | :--- | :--- | :--- | | Profit for the period | 292,039 | 547,458 | -46.7% | | Currency translation differences | 11,721 | (6,475) | N/A | | Total comprehensive income for the period | 303,760 | 540,983 | -43.9% | | Attributable to equity holders of the Company | 293,675 | 495,141 | -40.7% | Consolidated Statement of Financial Position Total assets increased by 3.4% as of June 30, 2025, driven by property, plant and equipment, while liabilities rose due to increased borrowings, and net assets slightly decreased Consolidated Statement of Financial Position (thousand RMB) | Indicator | June 30, 2025 | December 31, 2024 | Change Rate | | :--- | :--- | :--- | :--- | | Assets | | | | | Property, plant and equipment | 20,422,587 | 17,247,835 | 18.4% | | Interests in joint ventures | 2,019,489 | 2,147,270 | -5.9% | | Assets held for sale | 84,877 | 2,777,915 | -96.9% | | Total assets | 33,212,691 | 32,129,839 | 3.4% | | Liabilities | | | | | Bank borrowings (non-current) | 6,206,205 | 4,809,590 | 29.0% | | Other borrowings (non-current) | 11,515,808 | 9,296,012 | 23.9% | | Liabilities directly associated with assets held for sale | 40,530 | 2,541,816 | -98.4% | | Total liabilities | 24,312,642 | 23,223,533 | 4.7% | | Equity | | | | | Net assets | 8,900,049 | 8,906,306 | -0.07% | | Total equity attributable to equity holders of the Company | 8,712,572 | 8,714,950 | -0.03% | Consolidated Statement of Changes in Equity Total equity attributable to shareholders slightly decreased in H1 2025, influenced by profit, share repurchases, dividend payments, and currency translation effects Consolidated Statement of Changes in Equity (thousand RMB) | Indicator | As at Jan 1, 2025 | Profit for the period | Other comprehensive income | Cancellation of treasury shares | Repurchase of ordinary shares | Vesting of awarded shares | Share-based payments | 2024 dividend | Contribution from non-controlling interests | Acquisition of a subsidiary | Acquisition of partial equity interest in a subsidiary | Dividends declared to non-controlling interests | As at June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Share capital | 68,390 | – | – | (968) | – | – | – | – | – | – | – | – | 67,422 | | Treasury shares | (30,037) | – | – | 47,956 | (42,051) | 1,656 | – | – | – | – | – | – | (22,476) | | Share premium | 173,992 | – | – | (46,988) | – | 9,245 | – | – | – | – | – | – | 136,249 | | Contributed surplus | 2,359,063 | – | – | – | – | – | – | – | – | – | – | – | 2,359,063 | | Premium arising from acquisition and disposal of non-controlling interests | (106,718) | – | – | – | – | – | – | – | – | – | (2,748) | – | (109,466) | | Exchange reserve | (10,998) | – | 11,735 | – | – | – | – | – | – | – | – | – | 737 | | Other reserves | 168,125 | – | – | – | – | (10,901) | 188 | – | – | – | – | – | 157,412 | | Retained profits | 6,093,133 | 281,940 | – | – | – | – | – | (251,442) | – | – | – | – | 6,123,631 | | Attributable to equity holders of the Company | 8,714,950 | 281,940 | 11,735 | – | (42,051) | – | 188 | (251,442) | – | – | (2,748) | – | 8,712,572 | | Non-controlling interests | 191,356 | 10,099 | (14) | – | – | – | – | – | 913 | 1,217 | (13,394) | (2,700) | 187,477 | | Total equity | 8,906,306 | 292,039 | 11,721 | – | (42,051) | – | 188 | (251,442) | 913 | 1,217 | (13,394) | (2,700) | 8,900,049 | Condensed Consolidated Statement of Cash Flows Operating cash flow increased by 22.6% in H1 2025, while investing activities used significant cash, and financing cash flow decreased substantially Condensed Consolidated Statement of Cash Flows (thousand RMB) | Indicator | 2025 H1 | 2024 H1 | Change Rate | | :--- | :--- | :--- | :--- | | Net cash generated from operating activities | 1,040,855 | 849,097 | 22.6% | | Net cash used in investing activities | (1,334,527) | (2,136,256) | -37.5% | | Net cash generated from financing activities | 527,487 | 1,184,739 | -55.5% | | Net increase / (decrease) in cash and cash equivalents | 233,815 | (102,420) | N/A | | Cash and cash equivalents at end of period | 1,983,208 | 2,337,058 | -15.2% | - Expenditure for purchase of property, plant and equipment was RMB1,598,935 thousand[94] - Proceeds from bank borrowings were RMB1,293,020 thousand, and proceeds from other borrowings were RMB1,889,507 thousand[97] Notes to the Unaudited Interim Financial Report This chapter provides detailed notes explaining the unaudited interim financial report, covering accounting policies, segment data, revenue, expenses, and financial instruments 1 Basis of Preparation and Presentation This interim financial report adheres to HKAS 34 and HKEX Listing Rules, is unaudited but reviewed by KPMG, and maintains consistent accounting policies with 2024 - This interim financial report is prepared in accordance with Hong Kong Accounting Standard 34 – Interim Financial Reporting and the HKEX Listing Rules[99] - The report is unaudited but has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[100] - The accounting policies adopted are consistent with those used in the 2024 annual financial statements, except for changes expected to be reflected in the 2025 annual financial statements[99] 2 Changes in Accounting Policies and Disclosures The Group applied HKAS 21 amendments with no material impact and no other new accounting standards were applied during the period - The Group applied Hong Kong Accounting Standard 21 – The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability (Amendments), but it had no material impact on this interim report[101] - No new accounting standards or interpretations not yet effective were applied during this accounting period[102] 3 Segment Information The Group operates in "Power Generation Business" and "Others" segments, with performance assessed based on adjusted earnings before interest and tax - The Group's operating segments are "Power Generation Business" (operating wind and solar power plants, investing in joint venture and associate power plants) and "Others" (providing design, technical, and consulting services, undertaking power engineering design and construction, and existing finance lease services)[107] Segment Revenue (thousand RMB) | | 2025 H1 | 2024 H1 | Change Rate | | :--- | :--- | :--- | :--- | | Power Generation Business (sales to external customers) | 1,335,393 | 1,364,318 | -2.1% | | Others (sales to external customers) | 64,926 | 134,539 | -51.7% | | Total (sales to external customers) | 1,400,319 | 1,498,857 | -6.6% | Segment Results (thousand RMB) | | 2025 H1 | 2024 H1 | Change Rate | | :--- | :--- | :--- | :--- | | Power Generation Business | 625,860 | 812,081 | -22.9% | | Others | (5,516) | (5,513) | 0.05% | | Total | 620,344 | 806,568 | -23.1% | 4 Revenue Total revenue decreased by 6.6% in H1 2025, primarily due to lower electricity sales and a significant drop in green certificate income Revenue Analysis (thousand RMB) | Revenue Source | 2025 H1 | 2024 H1 | Change Rate | | :--- | :--- | :--- | :--- | | Electricity sales revenue: benchmark and market prices | 1,170,425 | 1,188,558 | -1.5% | | Renewable energy subsidy income | 153,436 | 146,391 | 4.8% | | Green certificate income | 7,211 | 19,716 | -63.4% | | Design, procurement and construction income | 26,217 | 40,109 | -34.6% | | Design service income | 20,658 | 14,099 | 46.5% | | Technical and consulting service income | 6,763 | 12,409 | -45.5% | | Other income (customer contracts) | 6,470 | 59,751 | -89.2% | | Finance lease income | 9,139 | 17,824 | -48.7% | | Total Revenue | 1,400,319 | 1,498,857 | -6.6% | - Of revenue from customer contracts, revenue recognized at a point in time was RMB1,364,963 thousand, and revenue recognized over time was RMB26,217 thousand[113] 5 Other Income Other income decreased by 29.6% in H1 2025, mainly due to reduced interest income and the cessation of booster station access usage income Other Income Analysis (thousand RMB) | Income Source | 2025 H1 | 2024 H1 | Change Rate | | :--- | :--- | :--- | :--- | | Interest income | 8,043 | 25,585 | -68.6% | | Government grants: tax refunds | 30,141 | 17,366 | 73.6% | | Booster station access usage income | – | 18,868 | -100% | | Compensation | 3,726 | 3,822 | -2.5% | | Guarantee income | 1,980 | 4,014 | -50.7% | | Rental income | 5,003 | 2,766 | 80.9% | | Others | 3,097 | 2,695 | 14.9% | | Total | 53,960 | 76,577 | -29.6% | 6 Other Gains and Losses, Net The Group reported net other gains of RMB24,070 thousand in H1 2025, a significant improvement driven by impairment reversal and a gain on joint venture disposal Other Gains and Losses, Net (thousand RMB) | Indicator | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Reversal of impairment loss on assets held for sale | 14,637 | – | | Gain on disposal of a joint venture, net | 11,461 | – | | Fair value gain on financial assets at fair value through profit or loss | 4,155 | 5,794 | | Loss on disposal/derecognition of subsidiaries, net | (3,215) | (33) | | Exchange loss, net | (1,307) | (4,061) | | Gain/(loss) on disposal of property, plant and equipment, net | 192 | (93) | | Others | (1,853) | (2,331) | | Total | 24,070 | (724) | 7 Finance Costs Net finance costs decreased by 7.4% in H1 2025, despite a 41.8% increase in capitalized interest, reflecting overall lower borrowing expenses Finance Costs (thousand RMB) | Indicator | 2025 H1 | 2024 H1 | Change Rate | | :--- | :--- | :--- | :--- | | Interest expense: bank borrowings | 99,192 | 97,974 | 1.2% | | Interest expense: other borrowings | 238,985 | 260,603 | -8.3% | | Interest expense: lease liabilities | 12,274 | 6,660 | 84.3% | | Total | 350,451 | 365,237 | -4.1% | | Less: capitalized interest | (34,990) | (24,674) | 41.8% | | Net finance costs | 315,461 | 340,563 | -7.4% | - Finance costs for qualifying assets were capitalized at varying applicable annual interest rates ranging from 2.45% to 3.95% (2024: 2.45% to 5.19%) and included in construction in progress under property, plant and equipment[117] 8 Profit Before Income Tax Profit before income tax decreased by 33.5% in H1 2025, while total depreciation and amortization increased by 21.8% - Profit before income tax was RMB346,511 thousand (2024 H1: RMB521,361 thousand), a 33.5% year-on-year decrease[79] - Total depreciation and amortization charged to profit or loss was RMB545,600 thousand (2024 H1: RMB447,995 thousand), an increase of 21.8% year-on-year[118] 9 Income Tax Expense / (Credit) The Group recorded an income tax expense in H1 2025, a shift from a credit in the prior year, due to increased current tax and non-recurring exemptions Income Tax Expense / (Credit) (thousand RMB) | Indicator | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Current tax: China corporate income tax | 65,422 | 49,294 | | Current tax: China withholding tax | 16,842 | 53,982 | | Under/(over) provision in prior years: China corporate income tax | 9,812 | 3,618 | | Under/(over) provision in prior years: China withholding tax | – | (90,000) | | Deferred tax | (37,604) | (42,991) | | Total | 54,472 | (26,097) | - In 2024, the Company, having obtained Hong Kong resident status, reversed RMB90,000 thousand of China dividend withholding tax related to dividend distributions declared from the surpluses of its PRC subsidiaries in 2022 and 2023[122] - The Group's current applicable withholding income tax rate ranges from 5% to 10%[120] 10 Earnings Per Share Basic and diluted earnings per share both decreased by approximately 42.6% in H1 2025, reflecting reduced profit attributable to ordinary equity holders Earnings Per Share (RMB cents) | Indicator | 2025 H1 | 2024 H1 | Change Rate | | :--- | :--- | :--- | :--- | | Basic earnings per share | 3.58 | 6.24 | -42.6% | | Diluted earnings per share | 3.58 | 6.23 | -42.6% | - Profit attributable to ordinary equity holders was RMB281,940 thousand (2024 H1: RMB501,370 thousand)[124] Weighted Average Number of Ordinary Shares (thousand shares) | Indicator | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Ordinary shares in issue at January 1 | 7,982,039 | 8,444,719 | | Effect of treasury shares | (113,005) | (412,745) | | Weighted average number of ordinary shares in issue | 7,869,034 | 8,031,974 | Weighted Average Number of Ordinary Shares (Diluted) (thousand shares) | Indicator | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Weighted average number of ordinary shares | 7,869,034 | 8,031,974 | | Effect of share award scheme | 4,184 | 15,426 | | Weighted average number of ordinary shares (diluted) in issue | 7,873,218 | 8,047,400 | 11 Dividends The Company declared and paid a 2024 annual dividend of HK$0.035 per share in July 2025 but decided against an interim dividend for H1 2025 - A dividend of HK$0.035 per ordinary share for the year ended December 31, 2024, totaling RMB251,442 thousand, was declared and paid on July 4, 2025[131] - The Company's directors decided not to declare an interim dividend for the six months ended June 30, 2025[132] 12 Property, Plant and Equipment The Group added RMB1,418,708 thousand in property, plant and equipment in H1 2025, with significant reclassification from assets held for sale due to terminated agreements - The Group added RMB1,418,708 thousand in property, plant and equipment (2024 H1: RMB1,148,351 thousand)[133] - Property, plant and equipment with a carrying amount of RMB2,230,187 thousand from asset groups classified as held for sale were reclassified back to non-current assets due to the termination of disposal agreements[133] 13 Trade and Bills Receivables Total trade and bills receivables increased by 5.8% as of June 30, 2025, driven by higher electricity price adjustment receivables, despite a significant drop in bills receivables Trade and Bills Receivables (thousand RMB) | Indicator | June 30, 2025 | December 31, 2024 | Change Rate | | :--- | :--- | :--- | :--- | | Trade receivables, at amortized cost | 352,354 | 348,152 | 1.2% | | Receivables for electricity price adjustments, at amortized cost | 1,352,241 | 1,178,858 | 14.7% | | Bills receivables, at fair value through profit or loss | 43,508 | 126,546 | -65.6% | | Impairment of trade receivables | (4,270) | (4,764) | -10.4% | | Total | 1,743,833 | 1,648,792 | 5.8% | Ageing Analysis of Trade Receivables (thousand RMB) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 months | 217,482 | 238,011 | | 3 to 6 months | 45,760 | 14,224 | | 6 to 12 months | 1,734 | 19,396 | | 1 to 2 years | 12,489 | 66,658 | | Over 2 years | 70,619 | 5,099 | | Total | 348,084 | 343,388 | Ageing Analysis of Receivables for Electricity Price Adjustments (thousand RMB) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 months | 83,391 | 100,254 | | 3 to 6 months | 89,992 | 77,453 | | 6 to 12 months | 177,707 | 164,713 | | Over 1 year | 1,001,151 | 836,438 | | Total | 1,352,241 | 1,178,858 | - As of June 30, 2025, the Group endorsed bills receivables totaling RMB263,412 thousand (2024: RMB159,039 thousand) from PRC banks to suppliers for settlement of trade payables[139] 14 Prepayments, Deposits and Other Receivables Total prepayments, deposits, and other receivables increased by 11.3% as of June 30, 2025, primarily due to higher recoverable VAT and other deposits Prepayments, Deposits and Other Receivables (thousand RMB) | Indicator | June 30, 2025 | December 31, 2024 | Change Rate | | :--- | :--- | :--- | :--- | | Prepayments for property, plant and equipment purchases | 181,417 | 165,621 | 9.5% | | Other prepayments | 248,769 | 261,845 | -5.0% | | Other borrowing deposits | 109,608 | 144,807 | -24.3% | | Other deposits | 239,017 | 114,869 | 108.1% | | Receivables from disposal of subsidiaries | 151,427 | 100,882 | 50.1% | | Receivables from former subsidiaries | 11,323 | 16,402 | -31.0% | | Other receivables | 77,870 | 124,812 | -37.6% | | Recoverable VAT | 1,581,080 | 1,398,546 | 13.0% | | Receivables from financial guarantee contracts | – | 8,546 | -100% | | Less: impairment allowance | (15,353) | (13,590) | 13.0% | | Total | 2,585,158 | 2,322,740 | 11.3% | 15 Balances with Associates and Joint Ventures Receivables from associates and joint ventures included trade receivables, dividends, and finance lease receivables, generally unsecured and interest-free - Receivables from associates included trade receivables of RMB1,042 thousand (December 31, 2024: RMB1,778 thousand)[142] - Receivables from joint ventures included trade receivables of RMB3,605 thousand (December 31, 2024: RMB2,756 thousand)[142] - Receivables from associates and joint ventures included dividends receivable, finance lease receivables (with interest rates ranging from 4.75% to 6.55%), and other unsecured, interest-free balances with no fixed repayment terms[142] 16 Cash and Cash Equivalents Cash and cash equivalents increased by 17.1% as of June 30, 2025, driven by higher cash and bank balances despite a decrease in restricted deposits Cash and Cash Equivalents (thousand RMB) | Indicator | June 30, 2025 | December 31, 2024 | Change Rate | | :--- | :--- | :--- | :--- | | Cash and bank balances | 2,321,693 | 2,229,188 | 4.2% | | Less: restricted deposits | (338,597) | (535,354) | -36.7% | | Cash and cash equivalents | 1,983,096 | 1,693,834 | 17.1% | 17 Assets / Liabilities Classified as Held for Sale Assets held for sale were reclassified to assets held for use due to terminated agreements, while a new subsidiary was classified as held for sale in April 2025 - Property, plant and equipment with a carrying amount of RMB2,230,187 thousand from asset groups classified as held for sale were reclassified back to non-current assets due to the termination of disposal agreements[146] - A reversal of impairment loss on assets held for sale of RMB14,637 thousand was recognized in other gains and losses, net[146] - In April 2025, the Group entered into an agreement with a third party to dispose of its entire equity interest in a subsidiary within its power generation business segment, which was classified as held for sale[146] Assets / Liabilities Classified as Held for Sale (thousand RMB) | Indicator | June 30, 2025 | | :--- | :--- | | Property, plant and equipment | 66,126 | | Intangible assets | 845 | | Prepayments, deposits and other receivables | 17,794 | | Cash and cash equivalents | 112 | | Assets held for sale | 84,877 | | Payables for project construction, other payables and accrued expenses | 40,530 | | Liabilities held for sale | 40,530 | 18 Trade and Bills Payables Total trade and bills payables decreased by 20.4% as of June 30, 2025, primarily due to a significant reduction in bills payables Trade and Bills Payables (thousand RMB) | Indicator | June 30, 2025 | December 31, 2024 | Change Rate | | :--- | :--- | :--- | :--- | | Trade payables | 267,541 | 276,796 | -3.3% | | Bills payables | 201,134 | 312,218 | -35.6% | | Total | 468,675 | 589,014 | -20.4% | Ageing Analysis of Trade Payables (thousand RMB) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 months | 8,451 | 19,131 | | 3 to 6 months | 5,204 | 6,947 | | 6 to 12 months | 13,636 | 19,127 | | 1 to 2 years | 26,533 | 15,796 | | Over 2 years | 213,717 | 215,795 | | Total | 267,541 | 276,796 | 19 Bank Borrowings Total bank borrowings increased by 25.9% as of June 30, 2025, with floating-rate borrowings dominating and overall financing costs decreasing Bank Borrowings (thousand RMB) | Indicator | June 30, 2025 | December 31, 2024 | Change Rate | | :--- | :--- | :--- | :--- | | Fixed-rate bank borrowings | 220,801 | 195,396 | 13.0% | | Floating-rate bank borrowings | 6,998,028 | 5,539,161 | 26.3% | | Total | 7,218,829 | 5,734,557 | 25.9% | Effective Interest Rate Range for Bank Borrowings | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Floating-rate bank borrowings | 1.60%-4.35% | 2.20%-5.00% | | Fixed-rate bank borrowings | 2.45%-3.95% | 2.60%-3.95% | 20 Other Borrowings The Group secured RMB2,256,290 thousand in new borrowings in H1 2025, with lower annual interest rates and repayment terms extending to 2040 - For the six months ended June 30, 2025, the Group's new drawdowns totaled RMB2,256,290 thousand (2024 H1: RMB1,721,104 thousand)[155] - The annual interest rates for borrowings ranged from 3.00% to 3.95% (2024 H1: 3.75% to 4.30%) and are repayable between 2025 and 2040[155] 21 Payables for Project Construction, Other Payables and Accrued Expenses Total payables for project construction, other payables, and accrued expenses decreased by 2.1% as of June 30, 2025, despite a new dividend payable Payables for Project Construction, Other Payables and Accrued Expenses (thousand RMB) | Indicator | June 30, 2025 | December 31, 2024 | Change Rate | | :--- | :--- | :--- | :--- | | Payables for project construction | 2,193,370 | 2,350,537 | -6.7% | | Payables for warranty deposits | 629,662 | 726,168 | -13.2% | | Dividends payable | 251,442 | – | N/A | | Payables for acquisition of a subsidiary | – | 12,200 | -100% | | Other payables and accrued expenses | 138,276 | 193,366 | -28.5% | | Total | 3,212,750 | 3,282,271 | -2.1% | - As of June 30, 2025, the Group accrued dividends payable of RMB251,442 thousand[156] 22 Share Capital Issued ordinary share capital decreased due to the repurchase and cancellation of 104,360,000 shares, with 58,400,000 shares held as treasury shares Share Capital (thousand RMB) | Indicator | Number of Shares (thousand shares) | Par Value (thousand RMB) | | :--- | :--- | :--- | | As at January 1, 2025 | 7,982,039 | 68,390 | | Cancellation of ordinary shares | (104,360) | (968) | | As at June 30, 2025 | 7,877,679 | 67,422 | - For the six months ended June 30, 2025, the Group repurchased a total of 104,360,000 ordinary shares of the Company on the Stock Exchange, involving a total consideration of RMB42,051 thousand, which were subsequently cancelled[157] - As of June 30, 2025, the Company held 58,400,000 ordinary shares as treasury shares (December 31, 2024: 75,650,000 shares)[158] 23 Share Award Scheme The Group recognized a significantly reduced expense of RMB188 thousand for the share award scheme in H1 2025, following the vesting of 17,250,000 shares - Under the share award scheme, 17,250,000 shares vested on February 15, 2025[159] - For the six months ended June 30, 2025, the Group recognized a total expense of RMB188 thousand (2024 H1: RMB4,074 thousand) for the share award scheme[159] 24 Commitments Capital commitments for property, plant and equipment decreased to RMB2,374,672 thousand as of June 30, 2025, with no investment commitments Capital Commitments (thousand RMB) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Contracted but not provided for in the consolidated financial statements: property, plant and equipment | 2,374,672 | 2,680,010 | - As of June 30, 2025, and December 31, 2024, the Group had no investment commitments[161] 25 Related Party Transactions The Group engaged in various related party transactions in H1 2025, including providing and recovering loans, and receiving finance and guarantee income Related Party Transactions (thousand RMB) | Transaction Type | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Provision of services and sales of goods to associates and joint ventures | 4,807 | 3,994 | | Guarantee income and interest income from associates and joint ventures | 2,346 | 5,889 | | Finance income from associates and joint ventures | 1,441 | 2,319 | | Purchase of services from joint ventures | 69,489 | 95,893 | | Loans provided to associates and joint ventures | 182,500 | – | | Recovery of loans provided to associates and joint ventures | 227,036 | – | | Recovery of finance lease receivables from associates and joint ventures | 30,111 | 11,585 | - Finance income from associates and a joint venture had annual interest rates ranging from 4.75% to 6.55% during this period[163] 26 Fair Value Measurement of Financial Instruments on a Recurring Basis The Group continuously measures fair values of financial instruments across three levels, with Level 3 including unlisted equity and contingent consideration, and no significant transfers between levels Fair Value Measurement of Financial Instruments on a Recurring Basis (thousand RMB) | Financial Instrument | Fair Value Level | June 30, 2025 | | :--- | :--- | :--- | | Unlisted equity securities | Level 3 | 180,659 | | Listed funds at fair value | Level 2 | 18,239 | | Money market wealth management products | Level 3 | 10,000 | | Contingent consideration for disposal of subsidiaries | Level 3 | 30,048 | | Bills receivables at fair value through profit or loss | Level 2 | 43,508 | - Level 3 fair value measurements primarily use the income approach (discounted cash flow method), considering long-term pre-tax operating profit margins and discount rates[168] - For the six months ended June 30, 2025, and the year ended December 31, 2024, there were no transfers between Level 1 and Level 2, and no transfers into or out of Level 3[167] 27 Comparative Figures Comparative figures for H1 2024 revenue and costs were adjusted from gross to net basis, with no impact on profit or retained earnings - The Group adjusted comparative figures for revenue and cost of sales and services for the six months ended June 30, 2024, by reclassifying certain transactions from a gross basis to a net basis[171] - These adjustments had no impact on the Group's profit for the six months ended June 30, 2024, or retained earnings as of January 1, 2025[171]