East Group(SZ:300376)2023-08-29 16:00Financial Measurement and Reporting - The company measures financial liabilities at fair value, with changes recognized in other comprehensive income, unless it causes or exacerbates accounting mismatches in profit or loss[1]. - Financial assets and liabilities are derecognized when the current obligations are discharged[3]. - The company uses simplified measurement methods for lease receivables and contract assets, measuring expected credit losses over the entire duration[6]. - Expected credit losses are assessed based on historical credit loss experience and current conditions, with a comparison table prepared for contract asset aging[10]. - The company recognizes government grants as income when conditions are met and can be received, measuring monetary grants at the received or receivable amount[34]. - The company capitalizes borrowing costs based on the principles of initial recognition[20]. - Long-term equity investments are accounted for using the cost method for controlled investments and the equity method for joint ventures[17]. - The company assesses the recoverable amount of long-term assets and recognizes impairment losses if below their carrying value[24]. - The company measures expected credit losses based on the nature of receivables and aging of contract assets[10]. - The company adjusts capital reserves for differences between initial investment costs and the book value of the acquired equity in business combinations[40]. - The company continues to recognize transferred assets in sale-leaseback transactions and records a financial liability equal to the transfer income[64]. - The company confirms revenue from sales of products upon installation and acceptance, ensuring reliable measurement of costs[57]. - The company capitalizes initial direct costs related to operating leases and recognizes rental income on a straight-line basis[63]. - Deferred income tax assets or liabilities are calculated based on the difference between the book value of assets and liabilities and their tax bases[60]. - The company recognizes contract liabilities for obligations to transfer goods to customers for received or receivable consideration[49]. - The company will suspend the capitalization of borrowing costs if there is a non-normal interruption in the construction of qualifying assets lasting more than three months[46]. - The company confirms revenue from construction projects based on the progress of performance, recognizing costs incurred when progress cannot be reliably determined[57]. - The company reported no discrepancies in net profit and net assets between financial reports prepared under international accounting standards and Chinese accounting standards for the reporting period[77]. - The company has not made any retrospective adjustments or restatements of prior year accounting data[77]. - The company has classified government grants related to income as deferred income, impacting future cost recognition[79]. Taxation and Government Incentives - The company has obtained a high-tech enterprise certificate valid for three years, allowing it to enjoy a 15% corporate income tax rate in 2023[68]. - Subsidiaries located in the western region benefit from a reduced corporate income tax rate of 15% as part of the western development policy[69]. - Income from public infrastructure projects is exempt from corporate income tax for the first three years and halved for the next three years, with 2023 being a tax-exempt year[71]. - The company has obtained high-tech enterprise certification for its subsidiaries, allowing them to enjoy a 15% corporate income tax rate for the 2023 fiscal year[88][89]. - The subsidiary Dali Zhongdian Guoneng New Energy Development Co., Ltd. can benefit from a 7.5% corporate income tax rate due to dual tax incentives for projects in the western region[91]. Financial Performance - The company's operating revenue for the reporting period was ¥2,624,805,551.64, representing a year-on-year increase of 3.26% compared to ¥2,541,861,733.98 in the same period last year[108]. - The net profit attributable to shareholders of the listed company was ¥281,315,823.11, reflecting a 14.73% increase from ¥245,188,469.75 in the previous year[108]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥265,613,701.55, up 17.96% from ¥225,167,022.84 year-on-year[108]. - The net cash flow from operating activities was ¥633,006,019.59, a significant increase of 686.91% compared to a negative cash flow of -¥107,854,918.89 in the same period last year[108]. - The basic and diluted earnings per share were both ¥0.12, representing a 9.09% increase from ¥0.11 in the previous year[108]. - Total assets at the end of the reporting period were ¥13,469,648,109.26, down 4.31% from ¥14,076,290,938.54 at the end of the previous year[108]. - The net assets attributable to shareholders of the listed company increased by 4.60% to ¥6,766,730,090.72 from ¥6,469,435,120.89 at the end of the previous year[108]. - The company plans not to distribute cash dividends or issue bonus shares[114]. - The company reported a total of ¥15,702,121.56 in non-recurring gains and losses for the reporting period[110]. - There were no significant differences in net profit and net assets when comparing international accounting standards with Chinese accounting standards[109]. - The total operating revenue for the first half of 2023 was approximately ¥2.62 billion, an increase of 3.24% compared to ¥2.54 billion in the same period of 2022[158]. - The total operating costs for the first half of 2023 were approximately ¥2.27 billion, up from ¥2.25 billion in the same period of 2022, reflecting a year-on-year increase of 1.25%[158]. - The company's total liabilities decreased to approximately ¥4.98 billion in the first half of 2023 from ¥5.43 billion in the same period of 2022, representing a reduction of about 8.5%[158]. - The total equity increased to approximately ¥5.34 billion in the first half of 2023, compared to ¥5.21 billion in the same period of 2022, marking an increase of about 2.5%[158]. - The company reported a net profit of approximately ¥350 million for the first half of 2023, compared to ¥295 million in the same period of 2022, indicating a growth of approximately 18.64%[158]. Market Trends and Strategic Focus - The company is focusing on expanding its product offerings in hybrid power solutions, intelligent micro-module data center solutions, and energy storage systems[161]. - The global data center market exceeded $130 billion in 2022, indicating a mature phase of development, with significant growth driven by digitalization and intelligence[166]. - The cumulative installed capacity of photovoltaic power in China reached 392.61 GW by the end of 2022, with a year-on-year growth of 28.07%[169]. - The company anticipates that the new installed capacity of photovoltaic power in 2023 will exceed 95 GW, with total installed capacity expected to surpass 487.6 GW[169]. - In 2022, China's new energy vehicle production and sales reached 7.058 million and 6.887 million units, respectively, representing year-on-year growth of 96.9% and 93.4%[172]. - As of June 2023, the cumulative installed capacity of new energy storage projects in China exceeded 17.33 million kW, with an average storage duration of 2.1 hours[170]. - The newly installed capacity of energy storage in China from January to June 2023 was approximately 8.63 million kW, contributing to a significant market expansion[170]. - By the end of 2022, the installed capacity of new energy storage projects in China reached 8.7 GW, marking a growth of over 110% compared to the end of 2021[170]. - Lithium-ion battery storage technology accounted for 94.2% of the newly installed capacity in 2022, maintaining its dominant position in the market[170]. - The UPS market in China reached a scale of 13.19 billion RMB in 2022, with an expected growth to 14.5 billion RMB by 2024, reflecting a compound annual growth rate of 14.39% from 2019 to 2024[190]. - The overall power supply market in China was valued at 20.21 billion USD in 2022, accounting for approximately 43.12% of the global market[192]. - The company focuses on the "new energy + storage" sector, with strategic business segments including smart power, data centers, and new energy storage solutions[188]. - The Chinese government has introduced multiple policies in 2023 to support the construction of charging infrastructure for new energy vehicles, enhancing market opportunities[173]. - The data center industry in China is transitioning from a cloud-centric phase to an intelligent center phase, with a projected compound annual growth rate (CAGR) of 20%-25% during the 14th Five-Year Plan period[195]. - In 2022, the IDC market size in China exceeded 220 billion yuan, maintaining a high growth rate, with demand shifting towards large and super-large IDC for cloud computing, medium-sized localized intelligent computing data centers, and small micro-IDCs for edge computing[195]. - The global photovoltaic market is expected to continue rapid growth, with an estimated annual new installed capacity of 280GW in 2023, potentially reaching 330GW under optimistic scenarios[195]. - In 2022, the global newly installed photovoltaic capacity was 230GW, with cumulative installed capacity surpassing 1,100GW[195]. - The development of renewable energy, particularly photovoltaic energy, is increasingly recognized as a consensus among countries due to global climate change and the depletion of fossil fuels[195]. - The demand for the energy storage industry is strong, with continuous growth in installed capacity[198]. Corporate Governance and Operations - The company has established over 260 customer service centers globally to provide comprehensive pre-sales technical support and after-sales service[180]. - The company has implemented safety production fee management in accordance with relevant regulations, impacting product costs and current profits[85]. - The company has maintained its registered address and contact information without changes during the reporting period[106]. - The company is listed on the Shenzhen Stock Exchange under the stock code 300376[104]. - The company’s legal representative is He Jia, ensuring proper governance and accountability[104]. - The company has not engaged in any related party transactions during the reporting period[147].