Financial Performance - For the six months ended June 30, 2024, the company reported a net loss of 689,554,comparedtoanetlossof337,346 for the same period in 2023, indicating a 104.5% increase in losses year-over-year[130]. - Net loss for the six months ended June 30, 2024, was 689,554,anincreaseof352,208 compared to a net loss of 337,346forthesameperiodin2023[153].−NetlossforthethreemonthsendedJune30,2024,was409,757, an increase of 161,915comparedtoanetlossof247,842 for the same period in 2023[159]. - Net non-operating expenses for the six months ended June 30, 2024, were 116,141,comparedtonon−operatingincomeof184,381 for the same period in 2023[152]. - Total operating expenses for the six months ended June 30, 2024, were 559,237,anincreaseof100,002 or 21.78% compared to 459,235forthesameperiodin2023[151].−OperatingexpensesforthethreemonthsendedJune30,2024,totaled350,803, a decrease of 23,604or6.30374,407 for the same period in 2023[157]. - Income tax expense for the three months ended June 30, 2024, was nil, compared to 57,958forthesameperiodin2023[158].FinancialPosition−TheaccumulateddeficitasofJune30,2024,standsat61.19 million, reflecting the ongoing financial challenges faced by the company[130]. - As of June 30, 2024, the company reported an unrestricted accumulated deficit of (61,186,925)andtotalaccumulateddeficitof(45,995,280) compared to (60,497,371)and(45,305,726) respectively as of December 31, 2023[176]. - The company maintains a statutory reserve of 15,191,645,whichisrestrictedretainedearningsandcannotbedistributedascashdividends[176].−Thecompanyisrequiredtoallocateatleast1016,334,466, including notes payable of 5,129,312andentrustedloansof11,143,634[179]. - Cash and equivalents as of June 30, 2024, were 68.10million,withacurrentratioof5.68:1andaliability−to−equityratioof0.25:1[161].CashFlowandInvestments−NetcashusedinoperatingactivitiesforthesixmonthsendedJune30,2024,was248,132, a significant decrease from 69,042,292forthesameperiodin2023[162].−NetcashprovidedbyinvestingactivitiesforthesixmonthsendedJune30,2024,was68,542,364, compared to net cash used in investing activities of 69,994,412forthesameperiodin2023[164].−Thecompanymadeaprepaymentof66.8 million to Hubei Bangyu New Energy Technology Co., Ltd. for energy storage battery systems as part of its expansion into energy storage solutions[163]. Business Strategy and Operations - The company is transitioning to an energy storage integrated solution provider, targeting high-growth potential industries such as large-scale photovoltaic and wind power stations[128]. - The company plans to pursue disciplined and targeted expansion strategies in market areas currently not served, indicating a focus on growth and diversification[128]. - The company is actively exploring opportunities to apply energy storage technologies to new industries, indicating a strategic shift towards innovation and market expansion[128]. - The company currently holds five power generating systems that are not producing electricity, highlighting operational challenges[130]. - The company has not recognized any income from its joint venture with Erdos TCH due to uncertainties in collection, despite receiving monthly compensation of RMB 1 million ($145,460) until operations resume[135]. Funding and Financial Support - Management intends to raise additional funds through private or public offerings or bank loans to support its business plan and operations[131]. - The company believes it has sufficient cash and access to loans to meet its working capital needs, supported by the Chinese government's backing for energy-saving businesses[179]. Currency and Market Risks - The company's operations are primarily in the PRC, making its earnings susceptible to foreign currency exchange rate fluctuations, particularly between the U.S. dollar and RMB[181].
