Business Operations - The company operates a Duolun Wind Farm in Inner Mongolia with a total installed capacity of 19.5 MW, consisting of 13 wind turbines, selling green electricity to the local power grid[5]. - The company has established a mature business network in North, East, and South China, supported by a team of over 170 staff across R&D, production, sales, operation, maintenance, and investment[3]. - The company focuses on integrated services for the new energy power industry, forming core businesses such as pitch control systems, wind power generation, operation and maintenance, and energy storage[10]. - The company has successfully served major wind power manufacturers, including Envision Energy and Shanghai Electric, enhancing its market presence[4]. - The company employs nearly 60 staff for wind power post-market operation and maintenance services across the PRC[6]. - The company is committed to providing overall solutions for integrated energy projects, including wind power storage and smart micro-grids[7]. Financial Performance - Revenue for 2021 was RMB 312.9 million, a decrease of 7.7% from RMB 338.9 million in 2020[13]. - Gross profit for 2021 was RMB 45.9 million, down 37.8% from RMB 73.6 million in 2020[13]. - Profit attributable to shareholders decreased by 47.6% to RMB 21.1 million in 2021 from RMB 40.2 million in 2020[13]. - Total liabilities decreased by 20.1% to RMB 244.9 million in 2021 from RMB 306.3 million in 2020[14]. - Total equity increased by 7.7% to RMB 259.6 million in 2021 from RMB 241.1 million in 2020[14]. - The gross profit for 2021 was approximately RMB 46 million, a decrease of approximately RMB 28 million or 37.8% from RMB 74 million in 2020, with a gross profit margin dropping from 21.7% to 14.7%[56]. - The gross profit margin for the pitch control system business decreased from 18.4% in 2020 to 9.1% in 2021, primarily due to reduced product prices and increased raw material costs[57]. - The Group's finance costs decreased by approximately 33.3% to RMB 4 million in 2021 from RMB 6 million in 2020, mainly due to the repayment of part of bank borrowings[70]. - The gearing ratio improved to 49% in 2021, a decrease of 7% from 56% in 2020, attributed to the repayment of borrowings[71]. - The net profit for 2021 was approximately RMB 21.3 million, representing a decrease of approximately RMB 19.1 million or 47.3% from RMB 40.4 million in 2020[73]. Market and Growth Opportunities - The new energy storage market is expected to grow at an annual average rate of over 50% during the "14th Five-Year" Plan, potentially reaching a market size of RMB 100 billion[17]. - The national target for new energy storage is to reach a cumulative installed capacity of over 30 million kilowatts by 2025, indicating significant growth opportunities in the sector[38][40]. - The Group plans to enhance its energy storage product system and develop customer-side energy storage projects to create a competitive business segment[39][41]. Research and Development - In 2021, the Group completed the "Nature 3060 Energy Management System (NQEMS)", marking a breakthrough in energy storage EMS[34]. - The Group commenced construction of the "4MW/4MWh wind power storage demonstration project" in Duolun Wind Farm, aiming for commissioning and grid connection by February 2022[34]. - The company aims to strengthen R&D capabilities for pitch control systems, allocating RMB 10.9 million for this purpose[107]. - The company emphasizes the importance of R&D and has appointed experienced professionals in key management positions to drive innovation[154][156]. Management and Governance - The company has a strong management team with extensive experience in the power industry, which is expected to benefit business development[129]. - The company is focused on expanding its market presence in the renewable energy sector, particularly in wind power projects[146]. - The Board of Directors is committed to good corporate governance standards to safeguard shareholder interests and enhance corporate value[170]. - The Company has complied with all applicable code provisions under the Corporate Governance Code during the year ended December 31, 2021[171]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific aspects of its affairs[198]. Human Resources - As of December 31, 2021, the Group employed a total of 169 employees, an increase from 165 employees in 2020, with all employees under labor contracts[89]. - The company aims to recruit 70 additional service personnel to expand wind farm operation and maintenance services, with an estimated cost of RMB 3.6 million[105]. - The company recruited 1 additional sales personnel, utilizing approximately RMB 0.05 million for this purpose, and expects to continue expanding its sales team in 2022[109]. - The company purchased R&D equipment and recruited 9 core technology personnel, utilizing approximately RMB 2 million in total, and is negotiating for additional R&D equipment and software[111]. Impact of COVID-19 - The Group did not experience any impact on production, order delivery, corporate operation, and finance due to the COVID-19 pandemic, thanks to effective prevention and control measures[97]. - The Group's cash flow is sufficient to maintain normal operations for 12 months even in a worst-case scenario of continued COVID-19 spread[102]. - The pandemic is not expected to have a significant impact on the Group's business operations in 2022[102]. Share Issuance and Proceeds - The Company issued 62.5 million new shares, receiving net proceeds of approximately HK$112.6 million (approximately RMB 98.2 million) from the listing[99]. - As of December 31, 2021, the Group has utilized part of the net proceeds from the listing, with unutilized proceeds placed in a licensed bank in Hong Kong[103]. - The total remaining net proceeds available as of December 31, 2021, is RMB 3.9 million for general working capital[107].
纳泉能源科技(01597) - 2021 - 年度财报