Revenue and Profitability - For the six months ended June 30, 2023, the Group's revenue was RMB73,287,000, a decrease of approximately 11.6% compared to RMB82,891,000 in the same period of 2022[14]. - Profit attributable to owners of the Company amounted to RMB343,000, a significant turnaround from a loss of RMB317,758,000 in the same period of 2022[14]. - The smart energy business contributed approximately RMB50,820,000 to the Group's revenue, slightly down from RMB51,015,000 in the same period of 2022[29]. - Total power generation revenue from existing solar power plants was RMB37,243,000, an increase from RMB34,129,000 in the same period of 2022[29]. - The smart energy business recorded a profit of RMB2,552,000 during the Period, compared to a loss of RMB317,315,000 in the same period of 2022[29]. - The public infrastructure construction business contributed RMB22,467,000 to revenue, down from RMB31,876,000 in the same period of 2022, with profit decreasing to RMB388,000 from RMB2,003,000[33]. - The Group's total revenue for the period was RMB73,287,000, representing an 11.6% decrease from RMB82,891,000 in the same period of 2022, while gross profit was RMB22,235,000, down 16.2% from RMB26,522,000[35]. - The gross profit margin decreased to 30% from 32% in the same period last year, primarily due to reduced gross profit from the smart energy business[35]. - Operating profit improved to RMB4,166,000, compared to an operating loss of RMB23,189,000 in the previous year[98]. - Profit before income tax was RMB814,000, a significant recovery from a loss of RMB289,270,000 in the prior year[98]. - Profit for the period was RMB746,000, compared to a loss of RMB317,481,000 in the same period last year[98]. Expenses and Financial Management - Selling and distribution expenses significantly decreased by 89.8% to RMB161,000 from RMB1,584,000 in the same period of 2022, mainly due to lower selling expenses in the household solar power generation systems business[35]. - Administrative expenses increased by 9.0% to RMB18,799,000 from RMB17,234,000 in the same period of 2022, primarily due to partial impairment provisions[35]. - The Group's net finance expenses amounted to RMB3,352,000, representing an increase of approximately 1376.7% compared to RMB227,000 in the same period of 2022, mainly due to a decrease in interest income[54]. - The income tax expense for the period was RMB68,000, a decrease of 99.8% from RMB28,211,000 in the same period of 2022, primarily due to the absence of derecognition of deferred income tax assets[54]. - The company reported a net finance expense of RMB3,352,000, compared to a net finance expense of RMB227,000 in the prior year[98]. Assets and Liabilities - As of June 30, 2023, the Group's bank balances and cash amounted to approximately RMB217,406,000, an increase from RMB213,198,000 as of December 31, 2022[39]. - Total current assets were approximately RMB647,241,000, with a current ratio of 5.79, down from 6.05 as of December 31, 2022, due to a higher increase in current liabilities compared to current assets[39]. - External borrowings as of June 30, 2023, were RMB173,400,000, down from RMB186,300,000 as of December 31, 2022, secured by machinery of solar power plants[39]. - Total liabilities decreased to RMB304,060,000 as of June 30, 2023, from RMB313,500,000 at the end of 2022[107]. - Non-current liabilities reduced to RMB192,287,000 from RMB209,478,000 at the end of 2022[107]. - Trade and other payables increased to RMB69,183,000 from RMB56,793,000 in the previous period[107]. - The Group's total financial liabilities as of June 30, 2023, were RMB293,355,000, with a carrying amount of RMB255,637,000[151]. Cash Flow and Liquidity - Cash generated from operating activities was RMB14,230,000, compared to a cash outflow of RMB16,986,000 in the same period last year[139]. - Net cash used in financing activities was RMB9,381,000, an improvement from RMB18,369,000 in the previous year[139]. - Cash and cash equivalents at the end of the period stood at RMB215,572,000, up from RMB181,567,000 a year earlier[139]. - The cash flows from investing activities generated a net cash inflow of RMB4,666,000, compared to RMB2,380,000 in the previous year[139]. - The Group's liquidity management involves monitoring cash requirements and compliance with loan covenants to ensure sufficient cash and credit facilities[151]. Business Operations and Strategy - The Group operates 11 ground and distributed solar power plants with an installed capacity of approximately 64 megawatts (MW) and household solar power plants of approximately 18 MW[29]. - The decrease in revenue was primarily due to reduced investment in the public infrastructure construction business during the Period[14]. - The Group is gradually expanding and diversifying into other clean energy businesses and investment businesses[27]. - The significant decrease in loss for the smart energy business was mainly due to the absence of prior year losses related to an associate and deferred income tax assets[29]. - The Group aims to improve energy utilization efficiency and reduce energy consumption costs through its smart energy cloud platform[29]. Shareholding and Governance - As of June 30, 2023, Mr. Wei Shaojun holds 970,534,633 shares, representing approximately 65.37% of the total shareholding[180]. - Lightway Power Holdings Limited and Harvest Oak Holdings Limited hold 534,462,121 shares (36.00%) and 436,072,512 shares (29.37%) respectively[182]. - There were no changes to the information required to be disclosed by the Directors during the reporting period[193]. - The Company was not aware of any other persons with interests or short positions in shares as of June 30, 2023, apart from those disclosed[188]. Risk Management - The Group's overall risk management program focuses on minimizing potential adverse effects on financial performance due to market risks, credit risks, and liquidity risks[5.1]. - The financial risk factors include foreign exchange risk, cash flow, and fair value interest rate risk[5.1]. - There were no changes in the risk management policies since December 31, 2022[151]. Compliance and Reporting - The review of interim financial information was conducted in accordance with International Standards, ensuring compliance and accuracy in reporting[95]. - The interim financial information is prepared in accordance with International Accounting Standard 34, ensuring compliance with reporting standards[166]. - The accounting policies adopted are consistent with those of the year ended December 31, 2022, ensuring continuity in financial reporting[166]. - The interim report is part of the ongoing financial disclosures required by the Stock Exchange[194].
鑫达投资控股(01281) - 2023 - 中期财报