Financial Performance - For the six months ended June 30, 2023, China Renewable Energy Investment Limited recorded a turnover of HK$97.8 million, a 10% decrease from HK$108.3 million in the same period last year[13]. - Gross profit for the period decreased by 26% to HK$31.8 million, down from HK$43.1 million for the six months ended June 30, 2022[13]. - Net profit attributable to equity holders increased by 17% to HK$35.9 million, compared to HK$30.7 million for the same period in 2022, with earnings per share rising to HK1.43 cents from HK1.23 cents[13]. - Operating profit decreased to HK$15,461,000, representing a decline of 24.3% compared to HK$20,443,000 in the previous year[91]. - Profit for the period increased to HK$35,039,000, up 16.1% from HK$30,168,000 in the same period of 2022[91]. - Profit attributable to equity holders of the Company was HK$35,853,000, representing a 16.5% increase from HK$30,745,000 in 2022[114]. - Basic and diluted earnings per share increased to 1.43 HK cents, up from 1.23 HK cents in the same period of 2022[114]. - Total comprehensive loss attributable to equity holders of the Company was HK$43,237,000, an improvement from a loss of HK$56,272,000 in 2022[114]. Financial Position - As of June 30, 2023, total bank borrowings were HK$304.7 million, down from HK$440.9 million as of December 31, 2022, primarily due to repayment of existing project loans and corporate bank loan facilities[13]. - Total assets as of June 30, 2023, were HK$2,374,693,000, down from HK$2,618,999,000 at the end of 2022, reflecting a decrease of 9.3%[93]. - Total equity decreased to HK$1,858,285,000 from HK$1,914,742,000, a decline of 2.9%[93]. - Total liabilities decreased to HK$516,408,000 as of June 30, 2023, down from HK$704,257,000 at the end of 2022, representing a reduction of approximately 26.7%[116]. - Current liabilities totaled HK$216,920,000, a significant decrease of 42.3% from HK$375,699,000 at the end of 2022[116]. - Non-current liabilities decreased to HK$299,488,000 as of June 30, 2023, down from HK$328,558,000 at the end of 2022, a decline of 8.9%[116]. - The bank borrowings current portion decreased significantly to HK$42,646,000 from HK$144,612,000, a reduction of 70.5%[116]. Cash Flow - Net cash generated from operating activities increased to HK$62,028,000, up 52.2% from HK$40,784,000 in 2022[96]. - Net cash generated from investing activities significantly rose to HK$122,207,000, compared to HK$8,370,000 in the previous year[96]. - Cash generated from operations rose to HK$64,520,000, a 47% increase from HK$43,897,000 in 2022[96]. - Cash and cash equivalents at 30 June 2023 were HK$212,544,000, an increase from HK$160,933,000 at the same time last year[96]. Operational Highlights - The Group experienced a net exchange loss of HK$4.6 million due to the depreciation of Renminbi during the first half of 2023[13]. - The Group operates 738 MW of wind farms and solar projects across several provinces, contributing to local economic development and compliance with environmental regulations[24]. - Total power dispatch for the company's wind farms in the first half of 2023 was 779.4 GWh, an increase of 10% compared to 708.7 GWh in the same period of 2022[16]. - The Group's operating assets generated a total of 781.7 GWh, reducing approximately 254,000 tons of coal consumption and 604,000 tons of carbon emissions[24]. - Wind power generation capacity increased by 13.7% to 389 GW, with total wind power output at 462,800 GWh, a 20% increase compared to 2022[16]. - Solar power output was 266,300 GWh, reflecting a 30% increase compared to 2022, accounting for 6.2% of total power generation[16]. Market and Economic Context - China's GDP increased by 5.5% year-on-year in the first half of 2023, but growth slowed to only 0.8% in the second quarter compared to the first quarter[16]. - Total power consumption in China rose by 5% compared to 2022, reaching 4,307,600 GWh[16]. - The government is expected to boost demand for power, particularly wind and solar, through interest rate cuts and measures to revive the property sector[22]. - Concerns about a potential economic recession exist, but government measures such as interest rate cuts are expected to increase electricity demand in the second half of the year, particularly for wind and solar energy[67]. Risk Management - Risk management is integrated into daily business processes, covering project operations to corporate strategy development[42]. - Identified risks are monitored and discussed at the Group level, overseen by the Executive Committee and the Board[42]. - The Group faces multiple financial risks, including foreign exchange risk, interest rate risk, credit risk, and liquidity risk[174]. - There have been no material changes in the risk management process or policies since the end of 2022[173]. Governance and Compliance - The Company has complied with the Corporate Governance Code throughout the six months ended 30 June 2023, except for the separation of roles between the Chairman and CEO[56]. - All Directors confirmed compliance with the Model Code regarding securities transactions throughout the six months ended 30 June 2023[57]. - The Company will review the structure of the Board to ensure it continues to meet governance principles[56]. Dividend Policy - The Company did not recommend the payment of an interim dividend for the six months ended 30 June 2023, compared to nil in 2022[56]. - The Group paid a final dividend of HK$0.5 cents per ordinary share, totaling HK$12,531,000 on 6 July 2023[156]. - No interim dividend was declared for the six months ended June 30, 2022, indicating a shift in dividend policy[157].
中国再生能源投资(00987) - 2023 - 中期财报