纳泉能源科技(01597) - 2025 - 中期财报

Corporate Information This chapter provides basic administrative and governance information about the company, including board members, committee composition, registered office, principal place of business, share registrar, independent auditor, stock code, and listing date - Board members include Executive Directors Mr. Cheng Liquan (Chairman) and Mr. Cheng Lifu (CEO), along with Non-executive Directors and Independent Non-executive Directors[6] - Audit Committee Chair is Ms. Hong Peiyu[6] - Independent Auditor is KPMG[10] - Company stock code is 1597, listed on October 20, 2020[10] Financial Highlights This chapter summarizes the company's key financial performance for the six months ended June 30, 2025, and its financial position as of that date, showing decreased revenue, expanded losses, and reduced cash and shareholders' equity Financial Performance for the Six Months Ended June 30 | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | Change Percentage | | :--- | :--- | :--- | :--- | | Revenue | 47,505 | 49,241 | –4% | | (Gross Loss) / Gross Profit | (3,760) | 43 | –8,844% | | (Gross Loss) / Gross Profit Margin | (7.91%) | 0.09% | –8% | | Loss Attributable to Shareholders | (20,018) | (13,343) | 50% | | Loss Per Share (RMB) | –0.080 | –0.053 | 51% | Financial Position as of June 30 | Indicator | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | Change Percentage | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents and Pledged Deposits | 26,014 | 58,202 | –55% | | Total Debt | 163,533 | 176,135 | –7% | | Net Debt | 137,519 | 117,933 | 17% | | Total Shareholders' Equity | 198,751 | 222,204 | –11% | Management Discussion and Analysis This chapter details the Group's business operations, financial performance, liquidity, and future outlook for the first half of 2025. Despite growth in pitch control systems and wind power, total revenue declined, and gross loss and loss for the period expanded due to reduced energy storage orders and decreased wind farm O&M demand. Policy, financial, and exchange rate risks are also analyzed Business Review The Group, as a leading wind power and pitch control system solution provider in China, has established an integrated business system covering R&D, integration, manufacturing, and sales of high-voltage pitch control systems, wind power generation, and wind power aftermarket O&M services. The company also actively expands into the new energy storage business, offering multi-scenario solutions - Core business segments: R&D, integration, manufacturing, and sales of wind turbine high-voltage pitch control systems, along with wind power generation and wind power aftermarket O&M services[13][17] - New energy extension: Energy storage business provides "source-grid-load-storage" full-chain solutions, serving various energy forms including wind, solar, and thermal power[14][17] - For the six months ended June 30, 2025, the Group delivered 337 sets of pitch control system products, an 80% increase compared to the same period in 2024, covering models from 5 MW to 9 MW[16][19] - Duolun Wind Farm's semi-annual operating hours were 1,697 hours, with a total semi-annual wind power generation of 33.09 million kWh connected to the grid[21][27] - Group development outlook: Will continue to focus on the new energy power sector, consolidating the domestic market while actively exploring international markets for new growth opportunities[24][30] Financial Position and Operating Results In the first half of 2025, the Group's total revenue decreased by 3% year-on-year to RMB 47.5 million, primarily due to reduced energy storage orders and lower demand for wind farm O&M. Despite a 50% revenue growth in pitch control systems and wind power, overall gross profit turned into a gross loss, and loss for the period expanded by 57% to RMB 23.5 million, mainly due to intense market competition, product price declines, and increased administrative expenses - For the six months ended June 30, 2025, the Group's total revenue was approximately RMB 47.5 million, a 3% decrease compared to the first half of 2024[32] Revenue Breakdown (For the Six Months Ended June 30) | Business Segment | 2025 (RMB Thousand) | 2024 (RMB Thousand) | Change (RMB Thousand) | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Sales of Pitch Control Systems and Related Components | 29,807 | 19,921 | +9,886 | +50% | | Wind Power Sales | 11,602 | 7,704 | +3,898 | +50% | | Wind Farm Operation and Maintenance Business | 2,218 | 7,319 | -5,101 | -71% | | Energy Storage Business | 3,878 | 14,297 | -10,419 | -71% | | Total | 47,505 | 49,241 | -1,736 | -3% | - Cost of sales was approximately RMB 51 million, an increase of approximately RMB 2 million or 4% compared to the first half of 2024[39][44] - The Group recorded a gross loss of approximately RMB 3.8 million (gross profit of approximately RMB 0 million in the first half of 2024), with the overall gross profit margin decreasing from 0% to -8%, mainly due to intense market competition, declining product prices and orders, and relatively lower gross profit margin in the energy storage business[46][50] - Administrative and other operating expenses were approximately RMB 17 million, an increase of RMB 5 million compared to the first half of 2024, primarily due to provisions for expected credit losses resulting from deteriorating customer repayment capabilities[55][61] - Loss for the period was approximately RMB 23.5 million, an increase of approximately RMB 8.5 million compared to the first half of 2024[57][63] - Loss attributable to owners of the Company was approximately RMB 20 million, an increase of approximately RMB 7 million compared to the first half of 2024[58][64] Liquidity and Capital Source As of June 30, 2025, the Group's cash and cash equivalents significantly decreased by 69% to approximately RMB 16 million, mainly due to operating losses and loan repayments. Despite this, the Board believes the Group has sufficient working capital for the next twelve months. Capital expenditure increased, primarily for plant renovation and optimization - As of June 30, 2025, the Group's asset-liability ratio was approximately 45%, largely unchanged from 44% as of December 31, 2024[65][71] - As of June 30, 2025, the Group's cash and cash equivalents were approximately RMB 16 million, a decrease of approximately RMB 35 million or 69% compared to December 31, 2024, mainly due to operating losses and loan repayments[67][73] - In the first half of 2025, the Group's capital expenditure totaled approximately RMB 3.9 million, an increase of RMB 0.9 million compared to the first half of 2024, primarily for the renovation and optimization of the company's plant[68][74] - As of June 30, 2025, the Group's subsidiaries had short-term bank borrowings of RMB 23 million, of which RMB 1 million was secured by intellectual property[70][76] Human Resources As of June 30, 2025, the Group employed 123 staff, a decrease from 160 as of December 31, 2024. The Group determines remuneration based on employees' qualifications, experience, and performance, and provides a retirement scheme for all eligible employees - As of June 30, 2025, the Group employed 123 staff (December 31, 2024: 160 staff)[77][80] - Remuneration packages include salaries and discretionary year-end bonuses, with a retirement scheme provided for all eligible employees[77] Significant Investments Held, Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures, and Future Plans for Significant Investments and Capital Assets For the six months ended June 30, 2025, the Group did not undertake any significant investments or material acquisitions or disposals of subsidiaries, associates, and joint ventures, nor were there any Board-approved future plans for significant investments or capital asset purchases - For the six months ended June 30, 2025, the Group did not undertake any significant investments or material acquisitions or disposals of subsidiaries, associates, and joint ventures[78][81] - As of the date of this interim report, the Group has no Board-approved future plans for significant investments or capital asset purchases[78] Potential Risk Exposures The Group faces policy uncertainty risks, as the new energy power industry is significantly affected by policies, potentially leading to demand slowdowns, underinvestment, and delayed settlement of electricity price premiums. Additionally, the Group faces financial risks such as insufficient cash flow and uncertainty in accounts receivable collection, as well as exchange rate risks from foreign currency assets and liabilities - Policy uncertainty risk: The new energy power industry is significantly affected by policies, and unfavorable policy changes may lead to demand slowdowns, underinvestment in pitch control systems, O&M, and energy storage, and long-term unsettled electricity price premiums for wind power sales[79][82] - Financial risks: Failure to generate sufficient cash flow from business operations will severely impact management and operations; accounts receivable and bills receivable are subject to customer operational uncertainties, posing risks of non-collection on schedule[83][88] - Exchange rate risk: The Company's recognized foreign currency assets and liabilities and future foreign currency transactions (primarily in USD) are exposed to foreign exchange risk, which management will continue to monitor and take prudent measures to mitigate[84][85][89] 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 listed securities[86][90] Events After the Reporting Period No other significant events occurred after the reporting period and up to the date of this interim report - No other significant events occurred after the reporting period and up to the date of this interim report[87][91] Corporate Governance and Other Information This chapter outlines the company's corporate governance practices, including the Board's commitment to good governance standards, compliance with the Model Code for Securities Transactions by Directors, details of the share option scheme, disclosure of directors' and substantial shareholders' interests, and the Audit Committee's review of interim results. The Board did not recommend an interim dividend Corporate Governance The Board is committed to achieving good corporate governance standards, emphasizing accountability and transparency. For the six months ended June 30, 2025, the Company complied with all applicable provisions of the Corporate Governance Code - The Board is committed to achieving good corporate governance standards, emphasizing enhanced accountability and transparency[92][93] - For the six months ended June 30, 2025, the Company complied with all applicable code provisions contained in the Corporate Governance Code[94][97] Compliance with the Model Code for Securities Transactions by Directors of Listed Issuers The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as its code of conduct for directors' securities transactions, and all directors confirmed compliance with the code for the six months ended June 30, 2025 - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 to the Listing Rules, as its own code of conduct for directors' securities transactions[95] - All Directors confirmed their compliance with the required standards set out in the Model Code for the six months ended June 30, 2025[96][98] Changes in the Information of Directors and Chief Executive and Senior Management of the Company There have been no changes in the information of the Company's directors and chief executive requiring disclosure since the publication of the 2024 annual report - Since the publication of the Company's 2024 annual report, there have been no changes in the information of directors and the chief executive of the Company requiring disclosure under Rule 13.51B(1) of the Listing Rules[99][102] Share Option Scheme The Company adopted a share option scheme on July 16, 2021, to provide incentives or rewards to eligible participants. The scheme stipulates the exercise price, maximum total number of shares that can be issued, and the maximum number of shares granted to each grantee. As of June 30, 2025, no share options have been granted, and the scheme will be valid for ten years from its adoption date - The Share Option Scheme was adopted on July 16, 2021, to grant share options as incentives or rewards to eligible participants (including employees, directors, consultants, suppliers, customers, etc.)[100][101][103][104] - The subscription price for share options shall not be less than the highest of the closing price on the offer date, the average closing price for the five business days immediately preceding the offer date, and the nominal value of the shares[106][108] - The total number of shares that may be issued upon exercise of all share options shall not exceed 10% of the total issued share capital on the adoption date (i.e., 25,000,000 shares)[106][109] - As of June 30, 2025, no share options have been granted under the Share Option Scheme[111][113] Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company and its Associated Corporations As of June 30, 2025, Mr. Cheng Liquan, Executive Director and Chairman, held a 75% long position in the Company's total issued shares through Hongyuan BVI, which he wholly owns. Other than this, no other directors or chief executives had disclosable interests or short positions in the Company's or its associated corporations' shares, underlying shares, or debentures Directors' Interests in the Company (As of June 30, 2025) | Director Name | Capacity | Number of Shares Held/Interested | Shareholding Percentage | | :--- | :--- | :--- | :--- | | Mr. Cheng Liquan | Interest in Controlled Corporation (through Hongyuan BVI) | 187,500,000 (L) | 75% | - Mr. Cheng Liquan legally and beneficially owns 100% of the entire issued share capital of Hongyuan BVI[117][119] - Save as disclosed above, no other directors or chief executives of the Company and their respective associates had any disclosable interests or short positions in any shares, underlying shares, or debentures of the Company or its associated corporations[118] Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares As of June 30, 2025, Hongyuan BVI and Ms. Zhou Xuan, spouse of Mr. Cheng Liquan, were substantial shareholders of the Company, each holding a 75% long position in the Company's total issued shares Substantial Shareholders' Interests in the Company (As of June 30, 2025) | Shareholder Name | Capacity | Number of Shares Held/Interested | Shareholding Percentage | | :--- | :--- | :--- | :--- | | Hongyuan BVI | Beneficial Owner | 187,500,000 (L) | 75% | | Ms. Zhou Xuan | Spouse's Interest | 187,500,000 (L) | 75% | - Hongyuan BVI is wholly owned by Mr. Cheng Liquan, and Ms. Zhou Xuan, as Mr. Cheng Liquan's spouse, is deemed to be interested in his shares[122] Audit Committee and Review of Interim Results The Company's Audit Committee comprises three independent non-executive directors, with Ms. Hong Peiyu serving as Chair. The Committee has discussed with management and reviewed the Group's unaudited interim condensed consolidated financial statements and interim report for the six months ended June 30, 2025 - The Audit Committee comprises three independent non-executive directors, including Ms. Hong Peiyu (Chair), Mr. Kang Jian, and Mr. Li Shusheng[124] - The Audit Committee has discussed with management the accounting principles and policies adopted by the Group and has reviewed the Group's unaudited interim condensed consolidated financial statements and interim report for the six months ended June 30, 2025[125][128] Interim Dividend The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[126][129] Consolidated Statement of Profit or Loss This consolidated statement of profit or loss shows that for the six months ended June 30, 2025, the Group recorded a loss for the period of RMB 23.549 million, a significant increase from the RMB 15.070 million loss in the prior year. This was primarily due to revenue decline leading to a gross profit turning into a gross loss, and a significant increase in administrative and other operating expenses Consolidated Statement of Profit or Loss (For the Six Months Ended June 30) | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Revenue | 47,505 | 49,241 | | Cost of Sales | (51,265) | (49,198) | | (Gross Loss) / Gross Profit | (3,760) | 43 | | Other Income | 1,427 | 830 | | Other Net Losses | (108) | (10) | | Selling and Distribution Expenses | (4,092) | (4,338) | | Administrative and Other Operating Expenses | (17,287) | (11,513) | | Operating Loss | (23,820) | (14,988) | | Net Finance Costs | (945) | (1,714) | | Loss Before Taxation | (24,765) | (16,702) | | Income Tax | 1,216 | 1,632 | | Loss for the Period | (23,549) | (15,070) | | Loss Attributable to Equity Holders of the Company | (20,018) | (13,343) | | Loss Attributable to Non-controlling Interests | (3,531) | (1,727) | | Loss Per Share (Basic and Diluted, RMB) | (0.080) | (0.053) | Consolidated Statement of Profit or Loss and Other Comprehensive Income This consolidated statement of profit or loss and other comprehensive income shows that for the six months ended June 30, 2025, the Group recorded a total comprehensive income for the period of RMB 23.453 million loss, an increase from the RMB 15.088 million loss in the prior year. This primarily reflects the increased loss for the period, also slightly affected by exchange differences Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the Six Months Ended June 30) | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Loss for the Period | (23,549) | (15,070) | | Other Comprehensive Income for the Period (Net of Tax) | 96 | (18) | | Total Comprehensive Income for the Period | (23,453) | (15,088) | | Attributable to Equity Holders of the Company | (19,922) | (13,361) | | Attributable to Non-controlling Interests | (3,531) | (1,727) | - Exchange differences on translation of financial statements at the company level resulted in a loss of RMB 276 thousand (2024: gain of RMB 205 thousand)[132] - Exchange differences on translation of financial statements of entities with non-RMB functional currency resulted in a gain of RMB 372 thousand (2024: loss of RMB 223 thousand)[132] Consolidated Statement of Financial Position This consolidated statement of financial position shows that as of June 30, 2025, the Group's total assets less current liabilities were RMB 204.310 million, and net assets were RMB 198.751 million, a decrease from December 31, 2024. Net current assets decreased, mainly due to a significant reduction in cash and cash equivalents, despite an increase in inventories Consolidated Statement of Financial Position (As of) | Indicator | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Non-current Assets | 125,788 | 133,747 | | Property, Plant and Equipment | 104,749 | 111,749 | | Contract Assets (Non-current) | 14,116 | 17,102 | | Deferred Tax Assets | 6,495 | 4,480 | | Current Assets | 236,496 | 264,592 | | Inventories | 31,206 | 15,446 | | Contract Assets (Current) | 30,281 | 47,955 | | Trade and Other Receivables | 144,218 | 136,706 | | Loans to Third Parties | 4,607 | 4,913 | | Cash and Cash Equivalents | 15,949 | 51,005 | | Pledged and Restricted Deposits | 10,235 | 8,567 | | Current Liabilities | 157,974 | 168,534 | | Bank Loans and Other Borrowings | 45,399 | 67,053 | | Trade and Other Payables (Current) | 108,582 | 97,886 | | Lease Liabilities (Current) | 3,329 | 3,150 | | Contract Liabilities (Current) | 309 | 148 | | Current Tax | 355 | 297 | | Net Current Assets | 78,522 | 96,058 | | Total Assets Less Current Liabilities | 204,310 | 229,805 | | Non-current Liabilities | 5,559 | 7,601 | | Trade and Other Payables (Non-current) | 494 | 577 | | Lease Liabilities (Non-current) | 5,065 | 7,024 | | Net Assets | 198,751 | 222,204 | | Total Equity | 198,751 | 222,204 | Consolidated Statement of Changes in Equity This consolidated statement of changes in equity shows that for the six months ended June 30, 2025, the Group's total equity decreased from RMB 222.204 million as of January 1, 2025, to RMB 198.751 million. This decrease was primarily attributable to the loss for the period and the impact of acquiring non-controlling interests, partially offset by capital contributions from non-controlling interests Consolidated Statement of Changes in Equity (For the Six Months Ended June 30, 2025) | Indicator | Balance at January 1, 2025 (RMB Thousand) | Changes in Equity (RMB Thousand) | Balance at June 30, 2025 (RMB Thousand) | | :--- | :--- | :--- | :--- | | Share Capital | 2,168 | — | 2,168 | | Share Premium | 95,992 | — | 95,992 | | Other Reserves | 31,646 | (4,564) | 27,082 | | PRC Statutory Reserve | 10,649 | — | 10,649 | | Exchange Fluctuation Reserve | (1,167) | 96 | (1,071) | | Retained Profits | 83,949 | (20,018) | 63,931 | | Total Attributable to Equity Holders of the Company | 223,237 | (24,486) | 198,751 | | Non-controlling Interests | (1,033) | 3,467 | — | | Total Equity | 222,204 | (23,453) | 198,751 | - Loss for the period was RMB 20.018 million (attributable to equity holders of the Company) and RMB 3.531 million (attributable to non-controlling interests)[142] - Capital contribution from non-controlling interests was RMB 4.000 million, and payment for acquisition of non-controlling interests was RMB 4.000 million[142] Condensed Consolidated Cash Flow Statement This condensed consolidated cash flow statement shows that for the six months ended June 30, 2025, the Group's net decrease in cash was RMB 35.013 million. Both operating and financing activities resulted in cash outflows, with a significant increase in cash outflow from financing activities, mainly due to repayment of bank borrowings Condensed Consolidated Cash Flow Statement (For the Six Months Ended June 30) | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (6,881) | (37,620) | | Net Cash Used in Investing Activities | (3,484) | (2,953) | | Net Cash (Used in) / Generated from Financing Activities | (24,648) | 21,284 | | Net Decrease in Cash | (35,013) | (19,289) | | Cash at January 1 | 51,005 | 55,824 | | Effect of Exchange Rate Changes | (43) | 166 | | Cash at June 30 | 15,949 | 36,701 | - Net cash used in operating activities significantly decreased from RMB 37.620 million in 2024 to RMB 6.881 million in 2025[143] - Financing activities changed from a net cash inflow of RMB 21.284 million in 2024 to a net cash outflow of RMB 24.648 million in 2025, primarily due to repayment of bank loans[143] Notes to the Unaudited Interim Financial Report This chapter provides detailed notes to the unaudited interim financial report, covering the company's general information, basis of preparation, changes in accounting policies, breakdown of revenue and segment reporting, other income and losses, taxation, loss per share, property, plant and equipment, inventories, receivables, loans to third parties, cash and deposits, bank borrowings, payables, dividends, capital commitments, and material related party transactions 1 General Information China Naquan Energy Technology Holdings Limited was incorporated in the Cayman Islands on November 28, 2019, and listed on the Main Board of the Hong Kong Stock Exchange on October 20, 2020. The Group primarily engages in the R&D, integration, manufacturing, and sales of pitch control systems and related components, wind power generation, wind farm operation and maintenance, and energy storage businesses in China - The Company was incorporated in the Cayman Islands on November 28, 2019, and its shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on October 20, 2020[145] - The Group primarily engages in the R&D, integration, manufacturing, and sales of pitch control systems and related components, wind power generation, wind farm operation and maintenance business, and energy storage business in China[145][149] 2 Basis of Preparation This interim financial report is unaudited and prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and International Accounting Standard 34. The report adopts the same accounting policies as those used in the 2024 annual financial statements, and changes in accounting policies have no significant impact on this interim report - This interim financial report is unaudited and prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and International Accounting Standard 34[146][150][152][157] - The interim financial report is prepared in accordance with the same accounting policies adopted in the annual financial statements for 2024, except for changes in accounting policies expected to be reflected in the 2025 annual financial statements[147][154][158] 3 Changes in Accounting Policies The Group has applied the amendments to IAS 21, "The Effects of Changes in Foreign Exchange Rates — Lack of Exchangeability," but these amendments have no significant impact on this interim report as no related foreign currency transactions were conducted. The Group has not early adopted any new standards or interpretations that are not yet effective - The Group has applied the amendments to IAS 21, "The Effects of Changes in Foreign Exchange Rates — Lack of Exchangeability"[154][158] - As the Group did not enter into any foreign currency transactions where one foreign currency is not exchangeable into another, these amendments have no significant impact on this interim report[154][158] - The Group has not early adopted any new standards or interpretations that are not yet effective for the current accounting period[155][159] 4 Revenue and Segment Reporting This chapter details the Group's revenue and segment reporting by business line. For the six months ended June 30, 2025, the Group's total revenue was RMB 47.505 million. Revenue from pitch control systems and wind power sales increased, while revenue from wind farm O&M and energy storage businesses significantly decreased. All of the Group's revenue is generated from China, and the vast majority of its non-current assets and capital expenditures are also located in China Revenue Classification by Business Segment (For the Six Months Ended June 30) | Business Segment | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Sales of Pitch Control Systems and Related Components | 29,807 | 19,921 | | Wind Power Sales | 11,602 | 7,704 | | Wind Farm Operation and Maintenance Business | 2,218 | 7,319 | | Energy Storage Business | 3,878 | 14,297 | | Total | 47,505 | 49,241 | Reportable Segment Profit/(Loss) (For the Six Months Ended June 30, 2025) | Business Segment | Profit/(Loss) (RMB Thousand) | | :--- | :--- | | Sales of Pitch Control Systems and Related Components | (4,852) | | Wind Power Sales | 6,312 | | Wind Farm Operation and Maintenance Business | 674 | | Energy Storage Business | (5,894) | | Total | (3,760) | Reportable Segment Assets (As of June 30, 2025) | Business Segment | Assets (RMB Thousand) | | :--- | :--- | | Sales of Pitch Control Systems and Related Components | 86,189 | | Wind Power Sales | 150,248 | | Wind Farm Operation and Maintenance Business | 2,497 | | Energy Storage Business | 86,064 | | Total | 324,998 | - All of the Group's revenue is generated from China, and the vast majority of its non-current assets and capital expenditures are located in/generated from China[179][180] 5 Other Income and Other Net Losses For the six months ended June 30, 2025, the Group's other income increased to RMB 1.427 million, primarily from VAT refunds and government grants. Concurrently, other net losses slightly increased, mainly due to net exchange losses Other Income (For the Six Months Ended June 30) | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | VAT Refunds and Deductions | 1,171 | 789 | | Government Grants | 96 | 6 | | Others | 160 | 35 | | Total | 1,427 | 830 | - VAT refunds include RMB 311 thousand from software sales (2024: RMB 17 thousand) and RMB 860 thousand from wind power generation (2024: RMB 772 thousand)[183][184][185] - Other net losses amounted to RMB 108 thousand (2024: RMB 10 thousand), primarily comprising net exchange losses of RMB 19 thousand (2024: RMB 17 thousand)[186] 6 Loss Before Taxation For the six months ended June 30, 2025, the Group's loss before taxation was RMB 24.765 million, an increase from RMB 16.702 million in the prior year. This was mainly due to increased depreciation expenses and provisions for expected credit losses, despite a decrease in net finance costs Net Finance Costs (For the Six Months Ended June 30) | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Bank Loan Interest Expense | 612 | 381 | | Interest Expense on Loans to Third Parties | 450 | 827 | | Interest Expense on Loans to Related Parties | — | 500 | | Lease Liabilities Interest Expense | 185 | 329 | | Interest Income | (302) | (323) | | Net Finance Costs | 945 | 1,714 | - Depreciation expenses for property, plant and equipment increased to RMB 9.037 million (2024: RMB 5.305 million)[189] - Provisions for expected credit losses on trade receivables and contract assets amounted to RMB 6.026 million (2024: reversal of RMB 12 thousand)[189] 7 Income Tax For the six months ended June 30, 2025, the Group recorded an income tax credit of RMB 1.216 million, primarily due to the origination and reversal of temporary differences, offsetting current tax provisions Income Tax (For the Six Months Ended June 30) | Indicator | 2025 (RMB Thousand) | 2024 (RMB Thousand) | | :--- | :--- | :--- | | Current Tax — PRC Corporate Income Tax | 861 | 442 | | Over-provision in Prior Years | (62) | (36) | | Deferred Tax (Origination and Reversal of Temporary Differences) | (2,015) | (2,038) | | Total | (1,216) | (1,632) | - PRC income tax provision is calculated based on the respective corporate income tax rates applicable to the Group's subsidiaries located in China[192][195] 8 Loss Per Share For the six months ended June 30, 2025, both basic and diluted loss per share were RMB 0.080, an increase from RMB 0.053 in 2024, reflecting the expanded loss attributable to equity holders of the Company. Diluted loss per share was the same as basic loss per share due to the absence of potential dilutive ordinary shares - Basic and diluted loss per share was RMB 0.080 (2024: RMB 0.053)[193][196] - Diluted loss per share was the same as basic loss per share due to the absence of potential dilutive ordinary shares[194][197] 9 Property, Plant and Equipment For the six months ended June 30, 2025, the Group purchased property, plant and equipment at a cost of RMB 3.881 million, an increase from the prior year. No items of property, plant and equipment were disposed of during the period - For the six months ended June 30, 2025, the Group purchased items of property, plant and equipment at a cost of RMB 3,881,000 (2024: RMB 3,090,000)[198][201] - For the six months ended June 30, 2025 and 2024, the Group did not dispose of any items of property, plant and equipment[198] 10 Inventories For the six months ended June 30, 2025, a decrease in the amount of inventories recognized as an expense in profit or loss for the period was RMB 1.285 million, an increase from the prior year - For the six months ended June 30, 2025, a decrease in the amount of inventories recognized as an expense in profit or loss for the period was RMB 1,285,000 (2024: RMB 927,000)[199][202] 11 Trade and Other Receivables As of June 30, 2025, the Group's total trade and other receivables amounted to RMB 144.218 million, an increase from December 31, 2024. Of this, electricity price surcharges receivable were RMB 77.062 million, which the directors believe are fully recoverable. The aging analysis of trade receivables shows a relatively high proportion of amounts outstanding for over three years Trade and Other Receivables (As of) | Indicator | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Trade Receivables and Bills Receivable, Net of Loss Provision | 133,363 | 128,193 | | Prepayments | 823 | 645 | | Other Receivables (Current) | 10,032 | 7,868 | | Other Receivables (Non-current) | 428 | 416 | | Total | 144,646 | 137,122 | Aging Analysis of Trade and Bills Receivables (As of June 30, 2025) | Aging | Amount (RMB Thousand) | | :--- | :--- | | Within 1 Year | 69,540 | | Over 1 Year but Within 2 Years | 10,739 | | Over 2 Years but Within 3 Years | 13,328 | | Over 3 Years | 39,756 | | Total | 133,363 | - As of June 30, 2025, electricity price surcharges receivable included in trade and other receivables amounted to RMB 77,062,000 (2024: RMB 69,547,000), which the directors believe are fully recoverable[212][214] 12 Loans to Third Parties As of June 30, 2025, net loans to third parties amounted to RMB 4.607 million. This includes an overdue but unpaid interest-free, unsecured loan from a former joint venture, and an interest-free, unsecured loan from another investor, repayable no later than December 31, 2025 Loans to Third Parties (As of) | Indicator | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Loans to Third Parties | 8,206 | 8,512 | | Less: Loss Provision | (3,599) | (3,599) | | Net Amount | 4,607 | 4,913 | - Includes a loan of RMB 6,876,000 from a former joint venture (overdue but unpaid) and a loan of RMB 1,330,000 from another investor in that former joint venture (repayable no later than December 31, 2025)[216][217][218][219] - The above loans are all interest-free and unsecured[217][218] 13 Cash and Cash Equivalents, Pledged and Restricted Deposits As of June 30, 2025, the Group's bank cash significantly decreased to RMB 15.949 million. Pledged deposits, primarily for issuing bills payable, increased. Cash and cash equivalents in mainland China are subject to foreign exchange control rules - Bank cash: As of June 30, 2025, it was RMB 15,949,000 (December 31, 2024: RMB 51,005,000)[221] Pledged and Restricted Deposits (As of) | Indicator | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Pledged Deposits for Issuing Bills Payable | 10,065 | 7,197 | | Restricted Deposits for Litigation | 170 | 1,370 | | Total | 10,235 | 8,567 | - Cash and cash equivalents in mainland China amounted to RMB 13,207,000 (2024: RMB 47,932,000), and outward remittances are subject to relevant foreign exchange control rules and regulations[221] 14 Bank Loans and Other Borrowings As of June 30, 2025, the Group's total bank loans and other borrowings amounted to RMB 45.399 million, a decrease from December 31, 2024. Short-term bank loans significantly decreased, while loans to third parties remained relatively stable Bank Loans and Other Borrowings (As of) | Indicator | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Bank Loans | 22,993 | 44,038 | | Loans to Third Parties | 22,406 | 23,015 | | Total | 45,399 | 67,053 | - Loans to third parties are unsecured, bear interest rates ranging from 3.5% to 7% per annum, and have no fixed repayment terms or are repayable within one year[224][225] 15 Trade and Other Payables As of June 30, 2025, the Group's total trade and other payables amounted to RMB 109.076 million, an increase from December 31, 2024. The aging analysis of trade payables shows a larger proportion of amounts outstanding for over twelve months. Other payables primarily include interest payable and employee-related costs Trade and Other Payables (As of) | Indicator | June 30, 2025 (RMB Thousand) | December 31, 2024 (RMB Thousand) | | :--- | :--- | :--- | | Trade Payables (Current) | 63,203 | 55,392 | | Bills Payable | 10,045 | 7,208 | | Other Payables (Current) | 35,334 | 35,286 | | Trade Payables (Non-current) | 494 | 577 | | Total | 109,076 | 98,463 | Aging Analysis of Trade Payables (As of June 30, 2025) | Aging | Amount (RMB Thousand) | | :--- | :--- | | Within 3 Months | 37,996 | | 3 to 6 Months | 248 | | 6 to 12 Months | 2,421 | | Over 12 Months | 22,538 | | Total | 63,203 | - Other payables include interest payable of RMB 30.931 million, employee-related costs of RMB 1.061 million, and other payables of RMB 3.342 million[231] 16 Dividends No dividends were paid or declared by the Company for the six months ended June 30, 2025 and 2024 - No dividends were paid or declared by the Company for the six months ended June 30, 2025 and 2024[232][234] 17 Capital Commitments As of June 30, 2025, and December 31, 2024, there were no significant capital commitments outstanding and not provided for at the end of each period - As of June 30, 2025, and December 31, 2024, there were no significant capital commitments outstanding and not provided for at the end of each period[233][235] 18 Material Related Party Transactions As of June 30, 2025, Mr. Cheng Lifu, an Executive Director of the Company, provided guarantees for bank credit granted to the Group amounting to RMB 22.993 million - As of June 30, 2025, Mr. Cheng Lifu, an Executive Director of the Company, provided guarantees for bank credit granted to the Group amounting to RMB 22,993,000 (December 31, 2024: RMB 32,538,000)[236][237]