| Discontinued operations |
5. Discontinued
operations
(a)
Description
Effective from August 31, 2024, the Group disposed of its entire ownership
interest in Sinopower, a subsidiary engaged in the provision of solar energy solutions, to a wholly-owned subsidiary of Newlink. For the
eight months ended August 31, 2024 and the year ended December 31, 2023, Sinopower is reported as a discontinued operation.
On September 30, 2024, the Group approved a plan to sell its ownership
interest in certain subsidiaries engaged in the energy storage solutions business to a wholly-owned subsidiary of Newlink. The sale is
anticipated to be completed within one year. As at December 31, 2024, the associated assets and liabilities are consequently presented
as held for sale. For the years ended December 31, 2023 and 2024, these subsidiaries are reported as a discontinued operation.
Financial information relating to the above discontinued operations
is set out below.
(b) Financial performance and cash flow
information
| | |
Year ended December 31, | |
| | |
2023 | | |
2024 | |
| | |
RMB’000 | | |
RMB’000 | |
| Revenues | |
| 86,714 | | |
| 93,882 | |
| Cost of revenues | |
| (61,144 | ) | |
| (85,538 | ) |
| Operating expenses | |
| (37,115 | ) | |
| (26,598 | ) |
| Other gains/(losses), net | |
| 387 | | |
| (258 | ) |
| Fair value changes of financial instruments at fair value through profit or loss | |
| (376 | ) | |
| 61 | |
| Finance costs | |
| (1,108 | ) | |
| (2,598 | ) |
| Loss before income tax | |
| (12,642 | ) | |
| (21,049 | ) |
| Income tax | |
| (478 | ) | |
| (1,193 | ) |
| Loss after income tax | |
| (13,120 | ) | |
| (22,242 | ) |
| Gain on sale of Sinopower after income tax | |
| — | | |
| 15,838 | |
| Loss from discontinued operations | |
| (13,120 | ) | |
| (6,404 | ) |
| Attributable to: | |
| | | |
| | |
| Equity holders of the Company | |
| (12,883 | ) | |
| (5,154 | ) |
| Non-controlling interests | |
| (237 | ) | |
| (1,250 | ) |
| | |
| (13,120 | ) | |
| (6,404 | ) |
| | |
| | | |
| | |
| Other comprehensive income from discontinued operations | |
| — | | |
| — | |
| Total comprehensive loss from discontinued operations | |
| (13,120 | ) | |
| (6,404 | ) |
| Attributable to: | |
| | | |
| | |
| Equity holders of the Company | |
| (12,883 | ) | |
| (5,154 | ) |
| Non-controlling interests | |
| (237 | ) | |
| (1,250 | ) |
| | |
| (13,120 | ) | |
| (6,404 | ) |
| | |
Year ended December 31, | |
| | |
2023 | | |
2024 | |
| | |
RMB’000 | | |
RMB’000 | |
| Net cash generated from/(used in) operating activities | |
| 482 | | |
| (33,377 | ) |
| Net cash used in investing activities | |
| (651 | ) | |
| — | |
| Net cash generated from financing activities | |
| 622 | | |
| 4,475 | |
| Net increase/(decrease) in cash and cash equivalents generated by discontinued operations | |
| 453 | | |
| (28,902 | ) |
(c) Details of the sale of Sinopower
| | |
As of
August 31,
2024 | |
| | |
RMB’000 | |
| Disposal consideration receivable | |
| 53,778 | |
| Carrying amount of net assets sold | |
| (37,940 | ) |
| Gain on sale before income tax | |
| 15,838 | |
| Income tax expense on gain | |
| — | |
| Gain on sale after income tax | |
| 15,838 | |
The carrying amounts of assets and liabilities as at the date of sale
were:
| | |
As of
August 31,
2024 | |
| | |
RMB’000 | |
| Cash and cash equivalents | |
| 1,647 | |
| Trade receivables | |
| 29,830 | |
| Contract assets | |
| 23,647 | |
| Inventories | |
| 9,145 | |
| Prepayments, other receivables and other assets | |
| 6,993 | |
| Right-of-use assets | |
| 3,161 | |
| Property, plant and equipment | |
| 296 | |
| Intangible assets | |
| 8,946 | |
| Goodwill | |
| 40,522 | |
| Other non-current assets | |
| 421 | |
| Total assets | |
| 124,608 | |
| Borrowings | |
| (6,965 | ) |
| Current lease liabilities | |
| (1,535 | ) |
| Trade payables | |
| (15,420 | ) |
| Income tax payables | |
| (2,066 | ) |
| Other payables and accruals | |
| (57,460 | ) |
| Non-current lease liabilities | |
| (2,133 | ) |
| Deferred tax liabilities | |
| (1,267 | ) |
| Total liabilities | |
| (86,846 | ) |
| Net assets | |
| 37,762 | |
| Attributable to: | |
| | |
| Equity holders of the Company | |
| 37,940 | |
| Non-controlling interests | |
| (178 | ) |
| | |
| 37,762 | |
(d) Assets and liabilities of disposal group classified as
held for sale
The following assets and liabilities were reclassified as held for
sale in relation to the discontinued operation as at 31 December 2024:
| | |
As of
December 31,
2024 | |
| | |
RMB’000 | |
| Assets classified as held for sale | |
| |
| Cash and cash equivalents | |
| 89 | |
| Trade receivables | |
| 34,414 | |
| Inventories | |
| 1,181 | |
| Prepayments, other receivables and other assets | |
| 19,342 | |
| Total assets of disposal group held for sale | |
| 55,026 | |
| Liabilities directly associated with assets classified as held for sale | |
| | |
| Borrowings | |
| (10,000 | ) |
| Trade payables | |
| (37,666 | ) |
| Other payables and accruals | |
| (2,920 | ) |
| Total liabilities of disposal group held for sale | |
| (50,586 | ) |
|