Gelonghui March 22丨Jinyang New Energy (01121.HK) announced that according to a preliminary assessment of the Group's unaudited comprehensive management accounts for the year ended December 31, 2023, the Group's sales for the reporting period were approximately RMB 295 million, an increase of about 8% over the sales amount of approximately RMB 274 million for the same period in 2022. Furthermore, the Group's gross margin during the reporting period is expected to increase to about 15% from about 13% in the same period in 2022.

Sales of the photovoltaic products business increased by about 13% over the reporting period compared to the same period in 2022. The main contribution to the increase in sales of this product comes from the Group's sales of high-efficiency heterojunction solar cells to European customers. Due to the importance that European and other overseas customers place on the Group's high-efficiency heterojunction solar cell modules and corresponding high product premiums, the Group successfully launched a new generation of back-contact solar ultra-high efficiency batteries for US, European and Australian customers for the first time in the fourth quarter of 2023, which can be rolled up solar awnings and heterojunction flexible module residential consumer products for motorhome power generation.

Furthermore, the Group has successfully initiated cooperation with a number of major motorhome retailers and manufacturers to use the Group's rollable heterojunction solar awnings for motorhomes as its power generation system. Regarding the Group's footwear raw equipment manufacturing business, although the Group still faces macroeconomic factors such as inflation in the US and weak consumer demand, thanks to the efforts of the Group's sales team, compared to the same period in 2022, the company successfully increased sales by about 12% during the reporting period.

According to the information currently available to the Group, the Group is expected to have a net loss of approximately RMB 320 million to approximately RMB 340 million during the reporting period. The Group's net loss during the reporting period is mainly due to the grant of share options in 2022 and 2023. The estimated share-based payments settled on an equity basis are approximately RMB 178 million. This expense is a non-cash accounting item and has no impact on the Group's cash flow position.

Furthermore, in preparation for the launch of heterojunction solar awning products and the development of HBC solar cells for the production of heterojunction back contact (“HBC”) flexible components, the Group's R&D expenses during the reporting period increased by about RMB 31 million to about RMB 83 million over the same period in 2022. In addition, sales and distribution expenses during the reporting period increased by approximately RMB 13 million to approximately RMB 25 million compared to the same period in 2022. Because in order to develop overseas markets for photovoltaic products, the Group established an American wholly-owned subsidiary to sell solar awnings and flexible modules and a dedicated marketing and sales team for Australia and Europe in 2023, and invested more resources in marketing and promotion activities.