(Incorporated in the Cayman Islands with limited liability) 12 September 2025 Dear Registered Shareholder, Sun.King Technology Group Limited (the "Company") Notification of publication of 2025 Interim Report (the "Current Corporate Communication") The English and Chinese versions of the Company's Current Corporate Communications are now available on the Company's website at (www.sunking-tech.com) and the website of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") at www.hkexnews.hk respectivel ...

[Company Information](index=2&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) This section details the company's board, governance, legal and administrative information, and listing details [Board of Directors and Corporate Governance Structure](index=3&type=section&id=2.1%20%E8%91%A3%E4%BA%8B%E6%9C%83%E5%8F%8A%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E6%9E%B6%E6%A7%8B) This section lists the company's board members, authorized representatives, and the composition of various committees - The Chairman of the Board is **Mr. Xiang Jie**, and the Chief Executive Officer is **Mr. Gong Renyuan**[3](index=3&type=chunk) - **Mr. Gong Renyuan** resigned as a member of the Nomination Committee on **June 6, 2025**, and **Ms. Cai Ge** was appointed[3](index=3&type=chunk) - The Chairman of the Audit Committee is **Mr. Chen Shimin**, the Remuneration Committee is **Mr. Liang Mingshu**, the Nomination Committee is **Mr. Zhang Xuejun**, and the Strategy and Sustainable Development Committee is **Mr. Xiang Jie**[3](index=3&type=chunk) [Legal and Administrative Information](index=3&type=section&id=2.2%20%E6%B3%95%E5%BE%8B%E5%8F%8A%E8%A1%8C%E6%94%BF%E4%BF%A1%E6%81%AF) This section provides details on the company's legal counsel, external auditor, registered office, headquarters, and listing information - The Company Secretary is **Ms. He Lina**, legal counsel is **Loeb & Loeb LLP**, and external auditor is **Ernst & Young**[3](index=3&type=chunk) - The company is registered in the **Cayman Islands**, headquartered in **Beijing, China**, with its principal place of business in Hong Kong at **Times Square, Causeway Bay**[3](index=3&type=chunk)[4](index=4&type=chunk) - The company's shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited, stock code **580**[4](index=4&type=chunk) [Chairman's Report](index=4&type=section&id=%E4%B8%BB%E5%B8%AD%E5%A0%B1%E5%91%8A) This report provides an overview of the company's performance, strategic developments, and future outlook [2025 First Half Performance Overview](index=4&type=section&id=3.1%202025%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E6%A5%AD%E7%B8%BE%E6%A6%82%E8%A7%88) The group achieved significant revenue and net profit growth in H1 2025, driven by conventional and flexible DC transmission, new energy generation, and energy storage businesses 2025 First Half Key Financial Indicators | Indicator | 2025 First Half (RMB million) | Year-on-year Growth Rate | | :--- | :--- | :--- | | Revenue | 888.3 | 35.5% | | Net Profit Attributable to Parent Company | 93.8 | 178.3% | - Revenue in the flexible DC transmission sector increased by **approximately 123%** year-on-year, primarily due to the delivery of products for projects such as the **Saudi Central-South ±500kV Flexible DC Transmission Converter Station** and the **Gansu-Zhejiang ±800kV UHVDC Transmission Project**[6](index=6&type=chunk) - Delivery volume in the conventional DC transmission sector decreased compared to H1 2024, but the **Southeast Tibet to Guangdong-Hong Kong-Macao Greater Bay Area** and **Inner Mongolia West to Beijing-Tianjin-Hebei UHVDC Transmission Projects** have been approved, expected to drive demand for power electronic devices[6](index=6&type=chunk) [Power Semiconductor Business Development](index=4&type=section&id=3.2%20%E5%8A%9F%E7%8E%87%E5%8D%8A%E5%B0%8E%E9%AB%94%E6%A5%AD%E5%8B%99%E7%99%BC%E5%B1%95) The group's self-developed power semiconductor business saw substantial revenue growth, enhancing R&D capabilities and supply chain security through an acquisition 2025 First Half Power Semiconductor Revenue | Indicator | 2025 First Half (RMB million) | Year-on-year Growth Rate | | :--- | :--- | :--- | | Self-developed Power Semiconductor Revenue | 53.1 | 231.4% | - New products include the **i23 series 7th generation IGBT chips** and multiple **IGBT modules**, enriching product variety and expanding market coverage[7](index=7&type=chunk) - Saichim Power Semiconductor will acquire **100% equity of Hunan Hongan Microelectronics Co., Ltd.**, to be paid by issuing new registered capital representing **approximately 9.00%**, which will enhance R&D capabilities, supply chain security, and reduce costs[7](index=7&type=chunk) [Outlook and Appreciation](index=4&type=section&id=3.3%20%E5%B1%95%E6%9C%9B%E8%88%87%E8%87%B4%E8%AC%9D) The group plans to continue delivering existing orders, secure new UHVDC projects, and expand power semiconductor R&D and market presence in emerging sectors - In the second half, the group will continue to deliver products for projects such as the **Shaanxi-Anhui Project**, **Saudi Central-South Project**, and **Gansu-Zhejiang Power Transmission Project**[8](index=8&type=chunk) - The group aims to secure new orders in bids for the **Southeast Tibet Project**, **Inner Mongolia West to Beijing-Tianjin-Hebei Project**, and other newly approved **UHVDC projects**[8](index=8&type=chunk) - The group will continue to intensify R&D and market expansion for self-developed power semiconductor products, focusing on emerging fields such as **electrified vessels** and **controlled nuclear fusion**[8](index=8&type=chunk) [Management Discussion and Analysis](index=5&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) This section provides a detailed review of the group's operational and financial performance, including market segment analysis, financial position, and future outlook [Business Review](index=5&type=section&id=4.1%20%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%B5) The group's total revenue increased by 35.5% to RMB 888.3 million in H1 2025, but the average gross profit margin declined, with the domestic market and power transmission remaining key contributors 2025 First Half Domestic and Overseas Market Performance | Market | 2025 Revenue (RMB thousand) | 2025 Gross Profit Margin | 2024 Revenue (RMB thousand) | 2024 Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | | Domestic Market | 845,968 | 24.7% | 617,047 | 35.1% | | Overseas Market | 42,352 | 47.4% | 38,711 | 46.9% | | Total | 888,320 | 25.8% | 655,758 | 35.8% | - Total revenue increased by **35.5%** year-on-year, but the average gross profit margin decreased from **35.8% to 25.8%**, primarily due to a reduced proportion of high-margin products[11](index=11&type=chunk)[26](index=26&type=chunk) [Domestic Market Performance](index=5&type=section&id=4.1.1%20%E5%9B%BD%E5%86%85%E5%B8%82%E5%9C%BA%E4%B8%9A%E7%BB%A9) Domestic market revenue grew by 36.9%, with power transmission remaining core, while electrified transportation declined and industrial and other sectors saw significant growth 2025 First Half Domestic Market Performance by Application Sector | Application Sector | 2025 Revenue (RMB thousand) | 2025 Gross Profit Margin | 2024 Revenue (RMB thousand) | 2024 Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | | Power Transmission and Distribution | 466,654 | 35.4% | 358,098 | 47.8% | | Electrified Transportation | 23,641 | 15.6% | 31,840 | 23.1% | | Industrial and Other | 355,673 | 11.3% | 227,109 | 16.7% | | Total | 845,968 | 24.7% | 617,047 | 35.1% | - The revenue share of the power transmission and distribution sector decreased from **58% to 55%**, electrified transportation from **5% to 3%**, and industrial and other sectors increased from **37% to 42%**[13](index=13&type=chunk)[14](index=14&type=chunk) [Power Transmission and Distribution Sector](index=6&type=section&id=4.1.1.1%20%E8%BE%93%E9%85%8D%E7%94%B5%E9%A2%86%E5%9F%9F) Revenue in the power transmission and distribution sector increased by 30%, driven by a 123% surge in flexible DC transmission, despite a 39% decrease in conventional DC transmission 2025 First Half Power Transmission and Distribution Sector Performance | Sub-sector | 2025 Revenue (RMB thousand) | 2024 Revenue (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Power Transmission and Distribution Sector | 466,654 | 358,098 | 30% | | Conventional DC Transmission | 89,205 | 146,945 | -39% | | Flexible DC Transmission | 295,960 | 132,914 | 123% | | Other Power Transmission and Distribution | 81,489 | 78,239 | 4% | - Flexible DC transmission revenue growth was primarily due to order deliveries for the **Saudi Central-South Project**, **Gansu-Zhejiang Power Transmission Project**, and **Peru/Chile Project**[16](index=16&type=chunk) - Conventional DC transmission revenue decreased mainly due to fewer order products delivered compared to the prior period in 2024[16](index=16&type=chunk) [Electrified Transportation Sector](index=7&type=section&id=4.1.1.2%20%E7%94%B5%E6%B0%94%E5%8C%96%E4%BA%A4%E9%80%9A%E9%A2%86%E5%9F%9F) Revenue in the electrified transportation sector decreased by 26%, primarily due to significant declines in rail transit and electric vehicle businesses, though other transportation areas doubled 2025 First Half Electrified Transportation Sector Performance | Sub-sector | 2025 Revenue (RMB thousand) | 2024 Revenue (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Electrified Transportation | 23,641 | 31,840 | -26% | | Rail Transit | 17,532 | 27,712 | -37% | | Electric Vehicles | 44 | 1,097 | -96% | | Other Transportation | 6,065 | 3,031 | 100% | - Rail transit revenue decreased by **37%**, mainly due to reduced orders from rolling stock manufacturers; electric vehicle revenue decreased by **96%**, primarily due to fewer industry orders[19](index=19&type=chunk) - Other transportation revenue increased by **100%**, mainly due to increased orders in the electrified vessel industry[19](index=19&type=chunk) [Industrial and Other Sectors](index=7&type=section&id=4.1.1.3%20%E5%B7%A5%E4%B8%9A%E5%8F%8A%E5%85%B6%E4%BB%96%E9%A2%86%E5%9F%9F) Revenue in the industrial and other sectors surged by 57%, driven by increased sales of self-developed power semiconductors and the scaling of new energy power station construction 2025 First Half Industrial and Other Sectors Performance | Sub-sector | 2025 Revenue (RMB thousand) | 2024 Revenue (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Industrial and Other | 355,673 | 227,109 | 57% | | Industrial Control | 196,368 | 151,130 | 30% | | New Energy Generation and Storage | 156,382 | 75,345 | 108% | | Research Institutes and Other | 2,923 | 634 | 361% | - New energy generation and storage revenue increased by **108%**, and research institutes and other revenue increased by **361%**[20](index=20&type=chunk) - Revenue growth was primarily due to increased sales of self-developed power semiconductors, laminated busbars, and DC-link capacitors, as well as higher revenue from new energy power station construction-related businesses[21](index=21&type=chunk) [Overseas Market Performance](index=8&type=section&id=4.1.2%20%E5%9B%BD%E5%A4%96%E5%B8%82%E5%9C%BA%E4%B8%9A%E7%BB%A9) Overseas market revenue increased by 9%, primarily due to higher sales of laminated busbars, DC-link capacitors, and solid-state DC circuit breakers 2025 First Half Overseas Market Performance | Category | 2025 Revenue (RMB thousand) | 2024 Revenue (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Overseas Market | 42,352 | 38,711 | 9% | | Domestic Subsidiary Products | 4,916 | 2,595 | 89% | | Overseas Subsidiary Products | 37,436 | 36,116 | 4% | - Domestic subsidiary product revenue in overseas markets increased by **89%**, while overseas subsidiary product revenue increased by **4%**[23](index=23&type=chunk) [Financial Review](index=8&type=section&id=4.2%20%E8%B4%A2%E5%8A%A1%E5%9B%9E%E9%A1%B5) The group's H1 2025 revenue grew by 35.5%, but gross margin declined due to a lower proportion of high-margin products, while profit before tax and profit attributable to owners significantly increased, mainly from other income and gains 2025 First Half Key Financial Indicators Changes | Indicator | 2025 First Half (RMB million) | 2024 First Half (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Revenue | 888.3 | 655.8 | 35.5% | | Cost of Sales | 659.1 | 421.0 | 56.6% | | Gross Profit | 229.3 | 234.8 | -2.3% | | Gross Profit Margin | 25.8% | 35.8% | -10.0pp | | Other Income and Gains | 130.7 | 34.3 | 281.0% | | Selling and Distribution Costs | 60.9 | 47.9 | 27.1% | | Administrative Expenses | 106.1 | 83.7 | 26.8% | | Research and Development Costs | 67.9 | 67.8 | 0.1% | | Other Expenses and Losses | 3.5 | 24.9 | -85.9% | | Finance Costs | 8.8 | 8.5 | 3.5% | | Profit Before Tax | 112.8 | 36.3 | 210.7% | | Income Tax Expense | 27.3 | 15.4 | 77.3% | | Profit Attributable to Owners of Parent | 93.8 | 33.7 | 178.3% | | Net Profit Margin | 10.6% | 5.1% | +5.5pp | - Other income and gains significantly increased by **281.0%**, primarily due to fair value gains on forward foreign exchange contracts and exchange gains[27](index=27&type=chunk) - Other expenses and losses decreased by **85.9%**, mainly due to exchange rate fluctuations[32](index=32&type=chunk) [Balance Sheet Analysis](index=9&type=section&id=4.2.1%20%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8%E5%88%86%E6%9E%90) The group's inventory and trade receivables and bills decreased, with shorter turnover days, indicating improved operational efficiency, while trade payables and bills slightly increased 2025 First Half Balance Sheet Key Indicators | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Inventory | 253.9 | 289.9 | -12.4% | | Average Inventory Turnover Days | 82 days | 94 days | -12 days | | Trade and Bills Receivables | 1,147.1 | 1,161.2 | -1.2% | | Average Turnover Days | 204 days | 233 days | -29 days | | Trade and Bills Payables | 434.0 | 416.7 | 4.2% | | Average Turnover Days | 116 days | 120 days | -4 days | [Liquidity and Financial Resources](index=10&type=section&id=4.2.2%20%E6%B5%81%E5%8A%A8%E8%B5%84%E9%87%91%E5%8F%8A%E8%B4%A2%E5%8A%A1%E8%B5%84%E6%BA%90) The group's current ratio remained stable, cash and cash equivalents increased, interest-bearing bank and other borrowings decreased, and the gearing ratio declined, indicating a solid financial position 2025 First Half Liquidity and Financial Resources | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Current Ratio | approx. 2.2 | approx. 2.2 | Stable | | Cash and Cash Equivalents | 454.7 | 415.5 | 9.4% | | Interest-bearing Bank and Other Borrowings | 285.3 | 299.3 | -4.7% | | Gearing Ratio | 13.9% | 15.0% | -1.1pp | - The group continues to implement prudent financial management policies and monitors its capital structure based on the ratio of total liabilities to total assets[42](index=42&type=chunk) [Foreign Currency Risk and Contingent Liabilities](index=10&type=section&id=4.2.3%20%E5%A4%96%E5%B8%81%E9%A3%8E%E9%99%A9%E4%B8%8E%E6%88%96%E7%84%B6%E8%B4%9F%E5%80%BA) The group manages transactional currency risk through forward currency contracts and had no significant contingent liabilities at the end of the reporting period - The group's primary functional currency is **RMB**, and it hedges exchange rate risk through forward currency contracts[43](index=43&type=chunk) - As of **June 30, 2025**, the group had no significant contingent liabilities[44](index=44&type=chunk) [Pledge of Group Assets and Major Investment Plans](index=10&type=section&id=4.2.4%20%E9%9B%86%E5%9B%A2%E8%B5%84%E4%BA%A7%E6%8A%B5%E6%8A%BC%E5%8F%8A%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B5%84%E8%AE%A1%E5%88%92) The group's certain bills payable and bank loans are secured by bills receivable, land use rights, and property, plant, and equipment, with no major investment plans during the period - Bills payable of approximately **RMB 50.1 million** are secured by bills receivable of approximately **RMB 50.1 million**[45](index=45&type=chunk) - Bank loans of **RMB 78.7 million** are secured by land use rights and property, plant, and equipment[45](index=45&type=chunk) - For the six months ended **June 30, 2025**, the group held no significant investments and made no material acquisitions or disposals of subsidiaries, associates, or joint ventures[46](index=46&type=chunk) [Events After Reporting Period](index=11&type=section&id=4.3%20%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%90%8E%E4%BA%8B%E9%A1%B9) Subsequent to the reporting period, Saichim Power Semiconductor signed an capital increase agreement and equity transfer agreement to acquire Hunan Hongan Microelectronics, which will dilute the company's equity interest in Saichim Power Semiconductor - Saichim Power Semiconductor will issue new registered capital, which investors will subscribe for a total consideration of **RMB 180,000,000**, representing approximately **9.00%** of Saichim Power Semiconductor's enlarged equity[48](index=48&type=chunk) - The subscription price will be satisfied by the investors transferring **100% equity of Hunan Hongan Microelectronics Co., Ltd.** to Saichim Power Semiconductor[48](index=48&type=chunk) - Upon completion of the transaction, the company's equity interest in Saichim Power Semiconductor will decrease from **approximately 70.5406% to approximately 64.1918%** on an enlarged basis[48](index=48&type=chunk) [Human Resources](index=11&type=section&id=4.4%20%E4%BA%BA%E5%8A%9B%E8%B5%84%E6%BA%90) As of June 30, 2025, the group had 1,066 employees, offering competitive compensation, benefits, and training programs, while maintaining good employee relations - As of **June 30, 2025**, the group had a total of **1,066 employees**[50](index=50&type=chunk) - The remuneration package includes basic salaries, medical insurance, discretionary cash bonuses, and retirement benefit schemes, with employees eligible to participate in the **2020 Share Option Scheme**[50](index=50&type=chunk) - The group focuses on establishing an internal management training and development system, enhancing employee skills through diversified training models[50](index=50&type=chunk) [Outlook](index=11&type=section&id=4.5%20%E5%B1%95%E6%9C%9B) The group will continue to deliver existing transmission project orders, actively pursue new UHVDC project bids, and intensify R&D and market expansion for power semiconductor products in emerging fields - In the second half, the group will continue to advance the delivery of products for multiple conventional and flexible DC transmission projects, including the **Shaanxi-Anhui Project**, **Saudi Central-South Project**, and **Gansu-Zhejiang Power Transmission Project**[51](index=51&type=chunk) - The group aims to secure new orders in bids for the **Southeast Tibet Project**, **Inner Mongolia West to Beijing-Tianjin-Hebei Project**, and other newly approved **UHVDC projects**[51](index=51&type=chunk) - The group will continue to intensify R&D and market expansion for self-developed power semiconductor products, focusing on pioneering advanced technologies such as **solid-state switches** and **pulsed power switches** in emerging fields like **electrified vessels** and **controlled nuclear fusion**[51](index=51&type=chunk) [Share Repurchases](index=11&type=section&id=4.6%20%E8%82%A1%E4%BB%BD%E5%9B%9E%E8%B4%AD) The company repurchased 1,296,000 shares in H1 2025 for approximately HK$1,524,145, aiming to enhance market price per share and improve investor confidence 2025 First Half Share Repurchase Details | Repurchase Month | Number of Shares Repurchased | Highest Purchase Price Per Share (HKD) | Lowest Purchase Price Per Share (HKD) | Purchase Price Paid (Approximate, HKD) | | :--- | :--- | :--- | :--- | :--- | | January | 240,000 | 1.33 | 1.28 | 314,862 | | March | 440,000 | 1.29 | 1.19 | 555,096 | | April | 616,000 | 1.17 | 1.00 | 654,187 | | Total | 1,296,000 | | | 1,524,145 | - Repurchased shares are held as **treasury shares**, and the company will not exercise shareholder rights or receive any benefits from them[53](index=53&type=chunk) - All repurchases were for the overall benefit of the company and its shareholders, aiming to enhance the **market price per share** and improve **investor confidence**[54](index=54&type=chunk) [Corporate Governance](index=12&type=section&id=4.7%20%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB) The company prioritizes corporate governance, adhering to the Listing Rules' Corporate Governance Code, with the audit committee reviewing interim financial statements - The company has adopted the **Corporate Governance Code** set out in Appendix C1 of the Listing Rules and complied with the applicable code provisions in **H1 2025**[55](index=55&type=chunk) - The Board has confirmed that all directors complied with the **Model Code for Securities Transactions by Directors** set out in Appendix C3 of the Listing Rules throughout **H1 2025**[56](index=56&type=chunk) - The Audit Committee, together with management, reviewed the accounting principles and practices adopted by the group and discussed matters related to **audit, risk management, internal control, and financial reporting**[57](index=57&type=chunk) [Dividend Policy](index=12&type=section&id=4.8%20%E8%82%A1%E6%81%AF%E6%94%BF%E7%AD%96) The Board resolved to declare an interim dividend of HK$0.01 per share for H1 2025, totaling approximately HK$15,933,980, payable around October 22, 2025 - The Board resolved to declare an interim dividend of **HK$0.01 per share** for the six months ended **June 30, 2025** (H1 2024: nil)[58](index=58&type=chunk) - The dividend will be paid from the company's **share premium account** and is expected to be paid on or about **October 22, 2025**[58](index=58&type=chunk) - The total amount to be absorbed is estimated at **HK$15,933,980**[58](index=58&type=chunk) [Changes in Shareholdings of Directors and Chief Executive](index=13&type=section&id=4.9%20%E8%91%A3%E4%BA%8B%E5%8F%8A%E4%B8%BB%E8%A6%81%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%91%98%E6%8C%81%E8%82%A1%E5%8F%98%E5%8A%A8) As of June 30, 2025, the company's directors and chief executive held long positions in company shares, with Mr. Xiang Jie holding the largest proportion June 30, 2025 Long Positions in Shares of Directors and Chief Executive | Director Name | Nature of Interest | Number of Ordinary Shares Held | Number of Ordinary Shares Issuable from Equity Derivatives | Total | Approximate Percentage of Company's Equity | | :--- | :--- | :--- | :--- | :--- | :--- | | Mr. Xiang Jie | Beneficial Owner | 51,666,000 | – | 51,666,000 | | | | Founder of Discretionary Trust | 338,328,347 | – | 338,328,347 | | | | | | | 389,994,347 | 24.32% | | Mr. Gong Renyuan | Beneficial Owner | 15,060,000 | 10,000,000 | 25,060,000 | | | | Spouse's Interest | 4,300,000 | 4,000,000 | 8,300,000 | | | | | | | 33,360,000 | 2.08% | | Mr. Yue Zhoumin | Beneficial Owner | 2,000,000 | 5,000,000 | 7,000,000 | 0.44% | - **Mr. Chen Shimin** and **Mr. Liang Mingshu** no longer serve as independent non-executive directors of other HKEX-listed companies[60](index=60&type=chunk) - As of **June 30, 2025**, none of the directors or chief executive had any short positions in the shares, underlying shares, or debentures of the company or any associated corporation[62](index=62&type=chunk) [Changes in Shareholdings of Substantial Shareholders](index=14&type=section&id=4.10%20%E4%B8%BB%E8%A6%81%E8%82%A1%E4%B8%9C%E6%8C%81%E8%82%A1%E5%8F%98%E5%8A%A8) As of June 30, 2025, Max Vision Holdings Limited and its affiliates were substantial shareholders holding long positions, with Ms. Meng Fankun also holding shares through spousal interest and trust beneficiary status June 30, 2025 Long Positions in Shares of Substantial Shareholders | Substantial Shareholder Name/Entity | Nature of Interest | Number of Ordinary Shares Held | Approximate Percentage of Company's Equity | | :--- | :--- | :--- | :--- | | Max Vision Holdings Limited | Beneficial Owner | 338,328,347 | 21.09% | | Jiekun Limited | Interest in Controlled Corporation | 338,328,347 | 21.09% | | Sapphire Skye Holdings Limited | Interest in Controlled Corporation | 338,328,347 | 21.09% | | Zedra Trust Company (Singapore) Limited | Interest in Controlled Corporation | 338,328,347 | 21.09% | | Ms. Meng Fankun | Spouse's Interest | 51,666,000 | | | | Beneficiary of Trust | 338,328,347 | | | | | 389,994,347 | 24.32% | - **Max Vision Holdings Limited** is wholly owned by **Jiekun Limited**, which is wholly owned by **Sapphire Skye Holdings Limited**, which is wholly owned by **Zedra Trust Company (Singapore) Limited**, the trustee of a private trust established by **Mr. Xiang Jie**[65](index=65&type=chunk) - **Ms. Meng Fankun** is deemed to have an interest due to her spouse, **Mr. Xiang Jie**, holding shares[65](index=65&type=chunk) [Share Option Schemes](index=15&type=section&id=4.11%20%E8%B4%AD%E8%82%A1%E6%9D%83%E8%AE%A1%E5%88%92) The company operates two share option schemes to incentivize eligible participants; in H1 2025, no options were exercised under the 2010 scheme, and a proposed grant to Mr. Xiang Jie under the 2020 scheme was not approved by shareholders - The **2010 Share Option Scheme** terminated on **June 3, 2020**, but options granted before termination remain exercisable[66](index=66&type=chunk) 2010 Share Option Scheme Movements (As of June 30, 2025) | Grantee | Unexercised as of January 1, 2025 | Granted During Period | Exercised During Period | Cancelled During Period | Lapsed During Period | Unexercised as of June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Employees | 5,120,000 | – | – | – | – | 5,120,000 | - The **2020 Share Option Scheme** aims to grant options to eligible participants including employees, non-executive directors, suppliers, customers, R&D supporters, shareholders, and consultants[70](index=70&type=chunk)[72](index=72&type=chunk) - The resolution for **Mr. Xiang Jie** to be granted **20,000,000 share options** was not approved at the **2025 Annual General Meeting**, thus no options were granted to him[75](index=75&type=chunk) - The company intends to re-grant **Mr. Xiang Jie** share options to subscribe for up to **20,000,000 shares**, subject to separate approval at an extraordinary general meeting[76](index=76&type=chunk) [Independent Review Report](index=18&type=section&id=%E7%8D%A8%E7%AB%8B%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A) Ernst & Young reviewed the interim financial information in accordance with HKSRS 2410 and found no material matters, concluding it was prepared in all material respects according to IAS 34 [Scope of Review and Conclusion](index=19&type=section&id=5.1%20%E5%AF%A9%E9%96%B1%E7%AF%84%E5%9C%8D%E8%88%87%E7%B5%90%E8%AB%96) The auditor reviewed the interim financial information, including the condensed consolidated financial statements, and found no matters suggesting non-compliance with IAS 34 - The auditor has completed the review of the interim financial information on pages **19 to 34**, including the condensed consolidated statement of financial position, statement of profit or loss and other comprehensive income, statement of changes in equity, and statement of cash flows[78](index=78&type=chunk) - The scope of review is substantially less than an audit, and therefore the auditor does not express an audit opinion[79](index=79&type=chunk) - Based on the review, the auditor has not noted any matters that cause them to believe the interim financial information is not prepared, in all material respects, in accordance with **International Accounting Standard 34**[80](index=80&type=chunk) [Condensed Consolidated Interim Financial Statements](index=19&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the group's condensed consolidated interim financial statements, including the statement of profit or loss, financial position, changes in equity, and cash flows [Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income](index=19&type=section&id=6.1%20%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For H1 2025, the group's revenue grew by 35.5% to RMB 888.3 million, with profit for the period significantly increasing to RMB 85.47 million and profit attributable to owners rising by 178.3% to RMB 93.77 million 2025 First Half Profit or Loss and Other Comprehensive Income Overview | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 888,320 | 655,758 | | Gross Profit | 229,254 | 234,784 | | Other Income and Gains | 130,747 | 34,335 | | Profit Before Tax | 112,808 | 36,349 | | Profit for the Period | 85,470 | 20,933 | | Profit Attributable to Owners of Parent | 93,773 | 33,722 | | Basic Earnings Per Share | RMB 5.85 cents | RMB 2.09 cents | - Total other comprehensive income/(loss) was **RMB (14,691) thousand**, primarily impacted by exchange differences on translation of overseas operations[82](index=82&type=chunk) [Condensed Consolidated Interim Statement of Financial Position](index=21&type=section&id=6.2%20%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the group's total assets less current liabilities were RMB 2,150.16 million, with net assets of RMB 2,057.99 million, showing an increase in net current assets and slight decreases in inventory and trade receivables June 30, 2025 Financial Position Overview | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Non-current Assets | 1,030,009 | 1,012,660 | | Total Current Assets | 2,040,579 | 2,022,187 | | Total Current Liabilities | 920,425 | 935,050 | | Net Current Assets | 1,120,154 | 1,087,137 | | Net Assets | 2,057,990 | 1,995,956 | | Total Equity | 2,057,990 | 1,995,956 | - Cash and cash equivalents increased from approximately **RMB 415.5 million** as of **December 31, 2024**, to approximately **RMB 454.7 million** as of **June 30, 2025**[84](index=84&type=chunk) - Trade and bills receivables decreased from approximately **RMB 1,161.2 million** as of **December 31, 2024**, to approximately **RMB 1,147.1 million** as of **June 30, 2025**[84](index=84&type=chunk) [Condensed Consolidated Interim Statement of Changes in Equity](index=23&type=section&id=6.3%20%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) For H1 2025, the group's total equity increased from RMB 1,995.96 million to RMB 2,057.99 million, primarily influenced by profit for the period and share-based payment expenses 2025 First Half Equity Changes Overview | Equity Item | January 1, 2025 (RMB thousand) | Profit for the Period (RMB thousand) | Total Comprehensive Income for the Period (RMB thousand) | Share Repurchases (RMB thousand) | Dividends Declared (RMB thousand) | Share-based Payments (RMB thousand) | June 30, 2025 (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Equity Attributable to Owners of Parent | 1,924,376 | 93,773 | 82,452 | (1,409) | (14,530) | 6,794 | 1,997,983 | | Non-controlling Interests | 71,580 | (8,303) | (11,673) | – | – | – | 60,007 | | Total Equity | 1,995,956 | 85,470 | 70,779 | (1,409) | (14,530) | 6,794 | 2,057,990 | - Fair value loss on investments at fair value through other comprehensive income for the period was **RMB (2,730) thousand**, and exchange differences on translation of overseas operations were **RMB (8,591) thousand**[87](index=87&type=chunk) [Condensed Consolidated Interim Statement of Cash Flows](index=24&type=section&id=6.4%20%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For H1 2025, net cash from operating activities was RMB 85.88 million, net cash used in investing activities was RMB (20.23) million, net cash used in financing activities was RMB (31.99) million, and cash and cash equivalents at period-end were RMB 454.69 million 2025 First Half Cash Flow Overview | Cash Flow Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Cash From/(Used In) Operating Activities | 85,881 | (231,324) | | Net Cash Used In Investing Activities | (20,225) | (84,118) | | Net Cash Used In Financing Activities | (31,987) | (19,124) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 33,669 | (334,566) | | Cash and Cash Equivalents at End of Period | 454,691 | 463,093 | - Net cash from operating activities turned positive from a negative value in the prior period of 2024, indicating improved operating conditions[91](index=91&type=chunk) - Net cash used in investing activities decreased, primarily due to reduced expenditure on the purchase of financial investments[91](index=91&type=chunk) [Notes to the Condensed Consolidated Interim Financial Information](index=26&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) This section provides detailed notes to the condensed consolidated interim financial information, covering company details, basis of preparation, accounting policy changes, segment information, and financial instrument fair values [Company Information (Note 1)](index=26&type=section&id=7.1%20%E5%85%AC%E5%8F%B8%E8%B5%84%E6%96%99%20(%E9%99%84%E6%B3%A81)) The company was incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange, with its principal business being the trading and manufacturing of power electronic components - The company was incorporated in the **Cayman Islands** as an exempted company with limited liability on **March 19, 2010**[92](index=92&type=chunk) - The group's principal activities are the trading and manufacturing of **power electronic components**[93](index=93&type=chunk) - The condensed consolidated interim financial information is presented in **RMB**[94](index=94&type=chunk) [Basis of Preparation (Note 2)](index=26&type=section&id=7.2%20%E7%BC%96%E5%88%B6%E5%9F%BA%E5%87%86%20(%E9%99%84%E6%B3%A82)) The condensed consolidated interim financial information is prepared in accordance with IAS 34 and should be read in conjunction with the group's annual consolidated financial statements for the year ended December 31, 2024 - The condensed consolidated interim financial information is prepared in accordance with **International Accounting Standard 34 "Interim Financial Reporting"** issued by the International Accounting Standards Board[95](index=95&type=chunk) [Changes in Accounting Policies (Note 3)](index=26&type=section&id=7.3%20%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E7%9A%84%E5%8F%98%E5%8A%A8%20(%E9%99%84%E6%B3%A83)) The revised IAS 21 (Amendment) "Lack of Exchangeability" was adopted for the first time this period but had no impact on the financial information as the group's transactional and functional currencies are convertible - The revised **International Financial Reporting Standard, IAS 21 (Amendment) "Lack of Exchangeability"**, was adopted for the first time in the current period[96](index=96&type=chunk)[97](index=97&type=chunk) - This amendment had no impact on the condensed consolidated interim financial information, as the currencies in which the group conducts transactions and the functional currencies used by group entities for translation into the group's presentation currency are convertible[97](index=97&type=chunk) [Operating Segment Information (Note 4)](index=26&type=section&id=7.4%20%E7%BB%8F%E8%90%A5%E5%88%86%E9%83%A8%E8%B5%84%E6%96%99%20(%E9%99%84%E6%B3%A84)) The group has one reportable operating segment, primarily engaged in manufacturing and trading power electronic components, with over 95% of revenue and all non-current assets attributable to mainland China - The group has established one reportable operating segment, primarily engaged in the manufacturing and trading of **power electronic components**[98](index=98&type=chunk) - Over **95%** of the group's revenue is attributable to customers located in **mainland China**, and all non-current assets are located in **mainland China**[99](index=99&type=chunk) [Revenue, Other Income and Gains (Note 5)](index=27&type=section&id=7.5%20%E6%94%B6%E5%85%A5%E3%80%81%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A%20(%E9%99%84%E6%B3%A85)) The group's H1 2025 revenue from customer contracts was RMB 888.32 million, with other income and gains significantly increasing to RMB 130.75 million, mainly due to government grants, exchange gains, and fair value gains on forward foreign exchange contracts 2025 First Half Revenue, Other Income and Gains | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue from Customer Contracts (Sales of Power Electronic Components) | 888,320 | 655,758 | | Other Income (Government Grants, Bank Interest, etc.) | 38,462 | 33,013 | | Gains (Net Exchange Gains, Net Fair Value Gains on Forward Foreign Exchange Contracts, etc.) | 92,285 | 1,322 | | Total | 130,747 | 34,335 | - Government grants increased from **RMB 20,348 thousand** to **RMB 33,270 thousand**[100](index=100&type=chunk) - Net exchange gains were **RMB 31,342 thousand**, and net fair value gains on forward foreign exchange contracts were **RMB 59,939 thousand**, significantly contributing to other gains[100](index=100&type=chunk) [Profit Before Tax (Note 6)](index=28&type=section&id=7.6%20%E9%99%A4%E7%A8%8E%E5%89%8D%E6%BA%A2%E5%88%A9%20(%E9%99%84%E6%B3%A86)) The group's H1 2025 profit before tax was RMB 112.81 million, a significant increase from the prior period, primarily due to favorable movements in fair value of forward foreign exchange contracts and exchange gains 2025 First Half Key Adjustments to Profit Before Tax | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of Inventories Sold | 659,985 | 420,321 | | Depreciation of Property, Plant and Equipment | 26,187 | 21,413 | | Depreciation of Right-of-use Assets | 3,067 | 2,580 | | Amortisation of Deferred Development Costs | 4,617 | 4,200 | | Net Impairment Loss on Trade Receivables and Contract Assets | 3,118 | 1,622 | | Net Fair Value Loss on Forward Foreign Exchange Contracts | – | 10,648 | | Net Exchange Losses | – | 11,366 | - In H1 2025, net fair value loss on forward foreign exchange contracts and net exchange losses were both **zero**, compared to significant losses in H1 2024, which positively impacted profit before tax[101](index=101&type=chunk) [Finance Costs (Note 7)](index=28&type=section&id=7.7%20%E8%9E%8D%E8%B5%84%E6%88%90%E6%9C%AC%20(%E9%99%84%E6%B3%A87)) The group's H1 2025 finance costs were RMB 8.84 million, a slight increase from the prior period, mainly comprising interest on bank and other loans 2025 First Half Finance Costs Composition | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on Bank Loans | 4,471 | 4,130 | | Interest on Other Loans | 4,241 | 4,265 | | Interest on Lease Liabilities | 123 | 146 | | Total | 8,835 | 8,541 | [Income Tax (Note 8)](index=29&type=section&id=7.8%20%E6%89%80%E5%BE%97%E7%A8%8E%20(%E9%99%84%E6%B3%A88)) The group's H1 2025 income tax expense was RMB 27.34 million, a 77.3% increase year-on-year, primarily due to increased revenue, with varying corporate income tax rates applied to subsidiaries 2025 First Half Income Tax Expense Composition | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current (Mainland China) | 17,802 | 15,837 | | Current (Europe) | 133 | 308 | | Deferred | 9,456 | (616) | | Total Tax Expense for the Period | 27,338 | 15,416 | - The corporate income tax rate in **mainland China is 25%**, and for high-tech enterprises, it is **15%**[103](index=103&type=chunk) - Subsidiaries in **Switzerland, Germany, and the Netherlands** pay local corporate tax at rates of approximately **18%, 32%, and 25.8%**, respectively[103](index=103&type=chunk) [Dividends (Note 9)](index=29&type=section&id=7.9%20%E8%82%A1%E6%81%AF%20(%E9%99%84%E6%B3%A89)) The Board declared an interim dividend of HK$0.01 per ordinary share on August 22, 2025, totaling approximately RMB 14.53 million - The Board declared an interim dividend of **HK$0.01 per ordinary share** (H1 2024: nil)[105](index=105&type=chunk) - The total interim dividend amounts to approximately **RMB 14,531,000**[105](index=105&type=chunk) [Earnings Per Share Attributable to Ordinary Equity Holders of the Parent (Note 10)](index=30&type=section&id=7.10%20%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%99%AE%E9%80%9A%E8%82%A1%E6%9D%83%E6%8C%81%E6%9C%89%E4%BA%BA%E5%BA%94%E5%8D%A0%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9%20(%E9%99%84%E6%B3%A810)) The group's H1 2025 basic and diluted earnings per share were both RMB 5.85 cents, a significant increase from RMB 2.09 cents in the prior period 2025 First Half Earnings Per Share | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit Attributable to Ordinary Equity Holders of Parent | 93,773 | 33,722 | | Basic Earnings Per Share | RMB 5.85 cents | RMB 2.09 cents | | Diluted Earnings Per Share | RMB 5.85 cents | RMB 2.09 cents | - The weighted average number of ordinary shares outstanding for calculating basic earnings per share for the period was **1,603,302,772 shares**[107](index=107&type=chunk) - The dilutive effect of share options resulted in an increase of **643,752 shares** in the weighted average number of ordinary shares[107](index=107&type=chunk) [Property, Plant and Equipment (Note 11)](index=30&type=section&id=7.11%20%E7%89%A9%E4%B8%9A%E3%80%81%E5%8E%82%E6%88%BF%E5%8F%8A%E8%AE%BE%E5%A4%87%20(%E9%99%84%E6%B3%A811)) The group's total cost of assets acquired in H1 2025 was RMB 36.37 million, with a total net book value of assets disposed of amounting to RMB 0.512 million 2025 First Half Property, Plant and Equipment Movements | Item | 2025 First Half (RMB thousand) | 2024 First Half (RMB thousand) | | :--- | :--- | :--- | | Total Cost of Assets Acquired | 36,370 | 45,630 | | Total Net Book Value of Assets Disposed | 512 | 246 | [Trade and Bills Receivables (Note 12)](index=31&type=section&id=7.12%20%E8%B4%B8%E6%98%93%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A1%B9%E5%8F%8A%E5%BA%94%E6%94%B6%E7%A5%A8%E6%8D%AE%20(%E9%99%84%E6%B3%A812)) As of June 30, 2025, the group's total trade and bills receivables were RMB 1,147.05 million, a slight decrease from year-end 2024, with credit terms typically ranging from one to three months June 30, 2025 Trade and Bills Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables (Net of Impairment) | 966,778 | 906,644 | | Bills Receivables | 180,275 | 254,525 | | Total | 1,147,053 | 1,161,169 | June 30, 2025 Trade Receivables Ageing Analysis | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 Months | 567,263 | 518,522 | | 4th to 6th Month | 172,174 | 188,948 | | 7th to 12th Month | 138,302 | 117,107 | | Over 1 Year | 89,039 | 82,067 | | Total | 966,778 | 906,644 | - The ageing of the group's bills receivables is within **six months**[111](index=111&type=chunk) [Trade and Bills Payables (Note 13)](index=31&type=section&id=7.13%20%E8%B4%B8%E6%98%93%E5%BA%94%E4%BB%98%E6%AC%BE%E9%A1%B9%E5%8F%8A%E5%BA%94%E4%BB%98%E7%A5%A8%E6%8D%AE%20(%E9%99%84%E6%B3%A813)) As of June 30, 2025, the group's total trade and bills payables were RMB 434.02 million, a slight increase from year-end 2024 June 30, 2025 Trade and Bills Payables Ageing Analysis | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within Six Months | 338,705 | 366,017 | | Over Six Months | 95,311 | 50,707 | | Total | 434,016 | 416,724 | [Issued Share Capital (Note 14)](index=32&type=section&id=7.14%20%E5%B7%B2%E5%8F%91%E8%A1%8C%E8%82%A1%E6%9C%AC%20(%E9%99%84%E6%B3%A814)) For H1 2025, the company repurchased 1,296,000 shares for a total consideration of RMB 1.41 million, with no share options exercised - For the six months ended **June 30, 2025**, no share options were exercised[113](index=113&type=chunk) - The company repurchased a total of **1,296,000** of its own shares for a total consideration of **RMB 1,409,000**[113](index=113&type=chunk) - In the prior period of 2024, the company repurchased and cancelled **18,244,000** and **18,178,000 shares** for a total consideration of **RMB 19,207,000**[113](index=113&type=chunk) [Commitments (Note 15)](index=32&type=section&id=7.15%20%E6%89%BF%E6%8B%85%20(%E9%99%84%E6%B3%A815)) As of June 30, 2025, the group's total contractual commitments were RMB 43.10 million, primarily for property, plant, and equipment, with forward foreign exchange contract commitments totaling RMB 614.90 million June 30, 2025 Contractual Commitments | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Buildings | 10,842 | 14,565 | | Plant and Equipment | 32,261 | 41,391 | | Total | 43,103 | 55,956 | June 30, 2025 Forward Foreign Exchange Contract Commitments | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Purchase Swiss Francs | 614,904 | 810,333 | | Purchase Japanese Yen | – | 5,534 | | Total | 614,904 | 815,867 | [Related Party Transactions (Note 16)](index=32&type=section&id=7.16%20%E5%85%B3%E8%81%94%E6%96%B9%E4%BA%A4%E6%98%93%20(%E9%99%84%E6%B3%A816)) The group's total remuneration paid to key management personnel in H1 2025 was RMB 25.50 million, an increase from the prior period, mainly due to a significant rise in share-based payment expenses 2025 First Half Key Management Personnel Remuneration | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Short-term Employee Benefits | 18,462 | 16,123 | | Post-employment Benefits | 1,597 | 1,461 | | Share-based Payment Expenses | 5,440 | 33 | | Total Remuneration Paid to Key Management Personnel | 25,499 | 17,617 | [Fair Value and Fair Value Hierarchy of Financial Instruments (Note 17)](index=33&type=section&id=7.17%20%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E5%85%AC%E5%B9%B3%E4%BB%B7%E5%80%BC%E5%8F%8A%E5%85%AC%E5%B9%B3%E4%BB%B7%E5%80%BC%E5%B1%82%E7%BA%A7%20(%E9%99%84%E6%B3%A817)) The fair value measurement of the group's financial instruments primarily uses Level 2 and Level 3, with bills receivable and derivative financial instruments measured at Level 2, and equity investments designated at fair value through other comprehensive income measured at Level 3 June 30, 2025 Fair Value of Financial Assets | Item | Carrying Amount (RMB thousand) | Fair Value (RMB thousand) | | :--- | :--- | :--- | | Bills Receivables | 180,275 | 180,275 | | Equity Investments Designated at Fair Value Through Other Comprehensive Income | 6,357 | 6,357 | | Time Deposits | 80,000 | 81,298 | | Derivative Financial Instruments | 53,524 | 53,524 | | Total | 320,156 | 321,454 | June 30, 2025 Fair Value of Financial Liabilities | Item | Carrying Amount (RMB thousand) | Fair Value (RMB thousand) | | :--- | :--- | :--- | | Interest-bearing Bank and Other Borrowings | 285,255 | 287,986 | | Derivative Financial Instruments | – | – | | Total | 285,255 | 287,986 | - The fair value of unlisted equity investments designated at fair value through other comprehensive income is estimated using market-based valuation techniques, which are based on assumptions not supported by observable market prices or rates, considering **peer price-to-sales ratios** and a **discount for lack of marketability**[117](index=117&type=chunk)[119](index=119&type=chunk) [Events After Reporting Period (Note 18)](index=35&type=section&id=7.18%20%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%90%8E%E4%BA%8B%E9%A1%B9%20(%E9%99%84%E6%B3%A818)) Subsequent to the reporting period, Saichim Power Semiconductor signed a capital increase agreement with investors to acquire Hunan Hongan Microelectronics, which will dilute the company's equity interest in Saichim Power Semiconductor - Saichim Power Semiconductor will issue new registered capital, which investors will subscribe for at the subscription price, totaling approximately **9.00%** of Saichim Power Semiconductor's enlarged equity[121](index=121&type=chunk) - The subscription price will be satisfied by the investors transferring **100% equity of Hunan Hongan Microelectronics Co., Ltd.** to Saichim Power Semiconductor[121](index=121&type=chunk) - Upon completion of the transaction, the company's equity interest in Saichim Power Semiconductor, calculated on an enlarged basis, will decrease from approximately **70.5406% to 64.1918%**[121](index=121&type=chunk) [Approval of Condensed Consolidated Interim Financial Information (Note 19)](index=35&type=section&id=7.19%20%E6%89%B9%E5%87%86%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%20(%E9%99%84%E6%B3%A819)) The condensed consolidated interim financial information was approved and authorized for issue by the Board of Directors on August 22, 2025 - The condensed consolidated interim financial information was approved and authorized for issue by the Board of Directors on **August 22, 2025**[122](index=122&type=chunk)

Core Viewpoint - The announcement highlights a strategic partnership between SaiJing Semiconductor and Sanan Semiconductor, focusing on stable supply, competitive pricing, and joint market exploration in the power semiconductor sector [2]. Group 1: Partnership Details - SaiJing Semiconductor's subsidiary, SaiJing Asia Pacific Semiconductor Technology (Zhejiang) Co., has signed a strategic cooperation framework agreement with Sanan Semiconductor [2]. - Sanan Semiconductor commits to ensuring a stable and timely supply of products based on SaiJing Semiconductor's needs, granting SaiJing priority in production planning [2]. - Both companies will assess market growth potential and develop capacity expansion plans together [2]. Group 2: Technical and Market Collaboration - The partnership includes establishing a technical exchange platform and joint R&D projects, along with sharing key industry trends to formulate product development plans and market strategies [2]. - The collaboration aims to explore new market opportunities, enhancing competitiveness in the domestic device market [2]. Group 3: Company Profiles - SaiJing Semiconductor specializes in the research and manufacturing of power semiconductor devices [2]. - Sanan Semiconductor, a wholly-owned subsidiary of Sanan Optoelectronics, possesses one of the few vertically integrated manufacturing service platforms for silicon carbide (SiC) in China, with an operational 8-inch SiC chip production line [2]. Group 4: Strategic Implications - The partnership is expected to leverage Sanan's capabilities in SiC materials and chip manufacturing, aligning with SaiJing's strengths in high-power chip design and module packaging [2]. - This collaboration aims to drive the development and commercialization of next-generation SiC modules, providing efficient and reliable solutions for sectors such as electric vehicles, photovoltaic energy storage, and industrial motors [2].

Group 1 - The stock of Sai Crystal Technology (00580.HK) rose over 4% in the afternoon trading session on September 12, 2023 [2] - As of the report, the stock price increased by 3.19%, reaching HKD 1.94 [2] - The trading volume amounted to HKD 13.2417 million [2]

Core Viewpoint - Sijian Technology (00580) experienced a stock price increase of over 4% following the announcement of a strategic cooperation agreement with Sanan Semiconductor, focusing on wide bandgap semiconductor technologies [1] Company Summary - Sijian Technology's stock rose by 3.19% to HKD 1.94, with a trading volume of HKD 13.24 million at the time of reporting [1] - The strategic cooperation was signed on September 12, involving Sijian's subsidiary, Sijian Asia Pacific Semiconductor Technology (Zhejiang) Co., Ltd., and Hunan Sanan Semiconductor Co., Ltd. [1] - The partnership aims to leverage complementary advantages in the new power semiconductor industry, focusing on the research and industrial application of silicon carbide and gallium nitride technologies [1] Industry Summary - The collaboration is positioned to contribute to the global energy revolution and industrial upgrading, highlighting the growing importance of wide bandgap semiconductor technologies in the industry [1]

Core Viewpoint - Sijian Technology (00580) has seen a stock price increase of over 4% in the afternoon trading session, currently trading at 1.94 HKD with a transaction volume of 13.24 million HKD, following the announcement of a strategic partnership with Hunan Sanan Semiconductor [1] Group 1: Company Developments - On September 12, Sijian Technology announced a strategic cooperation agreement between its subsidiary Sijian Asia Pacific Semiconductor Technology (Zhejiang) Co., Ltd. and Hunan Sanan Semiconductor Co., Ltd. [1] - The partnership aims to leverage complementary advantages in the new power semiconductor industry ecosystem, focusing on the research and industrial application of wide bandgap semiconductor technologies such as silicon carbide (SiC) and gallium nitride (GaN) [1] - This collaboration is positioned to support the global energy revolution and industrial upgrading [1]

Group 1 - The core point of the article is the establishment of a strategic partnership between SaiJing Technology's subsidiary, SaiJing Semiconductor, and Hunan Sanan Semiconductor, aimed at enhancing the supply chain and production capabilities in the power semiconductor sector [1] - SaiJing Semiconductor focuses on the research and manufacturing of power semiconductor devices, while Sanan Semiconductor, a wholly-owned subsidiary of Sanan Optoelectronics, possesses a vertically integrated manufacturing service platform for silicon carbide [1] - Sanan Semiconductor has successfully launched its 8-inch silicon carbide chip production line, which will support SaiJing Semiconductor's product supply needs [1] Group 2 - The partnership includes a commitment from Sanan Semiconductor to ensure stable and timely product supply to SaiJing Semiconductor, granting the latter priority in production planning [1] - Both companies will collaboratively assess market growth potential and develop capacity expansion plans to meet future demands [1]

Core Viewpoint - The announcement highlights the establishment of a strategic partnership between Sai Crystal Technology and Hunan Sanan Semiconductor, aimed at mutual benefits in the semiconductor and power device sectors [1] Group 1 - Sai Crystal Technology's subsidiary, Sai Crystal Asia Pacific Semiconductor Technology (Zhejiang) Co., Ltd., signed a strategic cooperation framework agreement with Hunan Sanan Semiconductor [1] - The partnership is based on shared development intentions and the strengths each party possesses in the semiconductor and power device business [1] - The collaboration aims to achieve a win-win situation for both companies [1]

Core Viewpoint - The announcement highlights the establishment of a strategic partnership between Sai Crystal Technology and Hunan Sanan Semiconductor, aimed at mutual benefits in the semiconductor and power device sectors [1] Group 1 - Sai Crystal Technology's subsidiary, Sai Crystal Asia Pacific Semiconductor Technology (Zhejiang) Co., Ltd., signed a strategic cooperation framework agreement with Hunan Sanan Semiconductor Co., Ltd. on September 12, 2025 [1] - The partnership is based on a shared development intention and the respective advantages in the semiconductor and power device businesses [1] - The collaboration aims to achieve a win-win situation for both parties involved [1]

Core Viewpoint - The establishment of a strategic partnership between SaiJing Technology and Sanan Semiconductor aims to enhance production capacity, pricing competitiveness, technical support, market collaboration, supply chain optimization, sustainable development, and international cooperation [1][2]. Group 1: Partnership Details - SaiJing Semiconductor will receive stable and timely product supplies from Sanan Semiconductor, with priority supply rights based on production plans [2]. - Sanan Semiconductor commits to providing competitive pricing mechanisms for SaiJing Semiconductor in the domestic device market [2]. - A technical exchange platform will be established for joint research and development projects between the two companies [2]. Group 2: Market and Supply Chain Strategies - Both companies will share key industry trends to formulate product development plans and market strategies, while exploring new market opportunities together [2]. - A joint supply chain risk assessment and response mechanism will be created to ensure stability and risk resilience in the supply chain [2]. - The partnership includes a commitment to environmental responsibility and participation in social responsibility projects [2]. Group 3: International Collaboration - The two companies will explore international market opportunities and participate in the formulation of international standards [2].