[Financial Summary](index=1&type=section&id=Financial%20Summary) [Interim Results Overview](index=1&type=section&id=Interim%20Results%20Overview) The Group's unaudited interim results for the six months ended June 30, 2025, show significant revenue growth but a decline in gross margin, alongside a substantial increase in profit attributable to owners of the parent | Metric | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 888.3 | 655.8 | +35.5% | | Gross Profit | 229.3 | 234.8 | -2.3% | | Gross Margin | 25.8% | 35.8% | -10.0pp | | Profit attributable to owners of the parent | 93.8 | 33.7 | +178.3% | | Earnings per share (basic and diluted) | 5.85 cents | 2.09 cents | +179.9% | [Condensed Consolidated Interim Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Financial%20Statements) [Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group's statement of profit or loss for the six months ended June 30, 2025, shows significant revenue and other income growth, leading to a substantial increase in profit before tax and profit for the period, despite a decline in gross profit | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 888,320 | 655,758 | | Cost of sales | (659,066) | (420,974) | | Gross profit | 229,254 | 234,784 | | Other income and gains | 130,747 | 34,335 | | Selling and distribution costs | (60,862) | (47,940) | | Administrative expenses | (106,074) | (83,660) | | Research and development costs | (67,923) | (67,756) | | Profit before tax | 112,808 | 36,349 | | Profit for the period | 85,470 | 20,933 | | Profit attributable to owners of the parent | 93,773 | 33,722 | | Total comprehensive income attributable to owners of the parent | 82,452 | 33,012 | [Condensed Consolidated Interim Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's financial position shows increases in both total non-current and current assets, with steady growth in net assets and a corresponding rise in total equity | Metric | 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 | [Notes to the Condensed Consolidated Interim Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) [Company Information](index=6&type=section&id=Company%20Information) The Company, incorporated in the Cayman Islands and listed on the HKEX, primarily engages in trading and manufacturing power electronic components, with financial information presented in RMB - The Group's principal activities are the trading and manufacturing of power electronic components[10](index=10&type=chunk) - The condensed consolidated interim financial information is presented in RMB[11](index=11&type=chunk) [Changes in Accounting Policies](index=6&type=section&id=Changes%20in%20Accounting%20Policies) Accounting policies adopted this period are consistent with the prior year, with the initial adoption of IAS 21 (Amendment) "Lack of Exchangeability" having no financial impact due to the Group's convertible transaction currencies - The adoption of IAS 21 (Amendment) "Lack of Exchangeability" had no impact on the condensed consolidated interim financial information, as the Group's transaction currencies are convertible[13](index=13&type=chunk) [Operating Segment Information](index=6&type=section&id=Operating%20Segment%20Information) The Group operates a single reportable segment, manufacturing and trading power electronic components, with over 95% of revenue and non-current assets attributable to mainland China, thus no other geographical segment information is provided - The Group has only one reportable operating segment, primarily engaged in the manufacturing and trading of power electronic components[14](index=14&type=chunk) - Over **95% of the Group's revenue** and all non-current assets are attributable to mainland China[15](index=15&type=chunk) [Revenue, Other Income and Gains](index=7&type=section&id=Revenue%2C%20Other%20Income%20and%20Gains) The Group's revenue primarily stems from the sale of power electronic components, with other income and gains significantly increasing due to government subsidies, exchange gains, and fair value gains from forward foreign exchange contracts Customer Contract Revenue | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Sale of power electronic components | 888,320 | 655,758 | Other Income and Gains | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Government subsidies | 33,270 | 20,348 | | Net exchange gains | 31,342 | – | | Net fair value gains from forward foreign exchange contracts | 59,939 | – | | Total | 130,747 | 34,335 | - Government subsidies primarily originate from mainland China's incentives for investment and technological advancement, with no unfulfilled conditions or contingencies[16](index=16&type=chunk) [Profit Before Tax](index=8&type=section&id=Profit%20Before%20Tax) The Group's profit before tax is achieved after deducting items such as cost of inventories sold, depreciation, amortization, and impairment, with a significant increase in cost of inventories sold and a substantial reduction in net fair value losses from forward foreign exchange contracts and net exchange losses Key Deductions/Additions 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 | | Net impairment losses on trade receivables and contract assets | 3,118 | 1,622 | | Net fair value losses from forward foreign exchange contracts | – | 10,648 | | Net exchange losses | – | 11,366 | [Finance Costs](index=8&type=section&id=Finance%20Costs) The Group's finance costs, primarily comprising interest on bank loans, other loans, and lease liabilities, show a slight overall increase Analysis of Finance Costs | 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 Expense](index=9&type=section&id=Income%20Tax%20Expense) The Group's income tax expense is calculated based on tax rates in different jurisdictions, with a 25% corporate income tax rate in mainland China and a 15% preferential rate for certain high-tech enterprises, resulting in a significant increase in total tax expense for the period - The corporate income tax rate in mainland China is **25%**, with certain high-tech enterprises enjoying a **15% preferential tax rate**[19](index=19&type=chunk) Total Tax Expense for the Period | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Subtotal of current tax expense | 17,882 | 16,032 | | Deferred tax | 9,456 | (616) | | Total tax expense for the period | 27,338 | 15,416 | [Dividends](index=9&type=section&id=Dividends) The Board has declared an interim dividend of HK$0.01 per ordinary share for the six months ended June 30, 2025, with no dividend declared for the corresponding period last year - The Board declared an interim dividend of **HK$0.01 per ordinary share**, totaling approximately **RMB14,531,000**[20](index=20&type=chunk) - No interim dividend was declared for the corresponding period in 2024[20](index=20&type=chunk) [Earnings Per Share Attributable to Ordinary Equity Holders of the Parent](index=10&type=section&id=Earnings%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Parent) Both basic and diluted earnings per share significantly increased, primarily due to a substantial rise in profit attributable to ordinary equity holders of the parent, coupled with a slight decrease in the weighted average number of ordinary shares outstanding - Basic earnings per share are calculated based on profit attributable to ordinary equity holders of the parent of **RMB93,773,000** (2024: RMB33,722,000)[21](index=21&type=chunk) Basis for Earnings Per Share Calculation | Metric | 2025 (RMB thousand/share) | 2024 (RMB thousand/share) | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the parent | 93,773 | 33,722 | | Weighted average number of ordinary shares outstanding for basic EPS | 1,603,302,772 | 1,616,157,705 | | Dilutive effect - share options | 643,752 | 370,317 | | Total (diluted shares) | 1,603,946,524 | 1,616,528,022 | [Trade and Bills Receivables](index=11&type=section&id=Trade%20and%20Bills%20Receivables) The Group's total trade and bills receivables slightly decreased, with credit terms typically ranging from one to three months, and strict credit controls in place to mitigate risks - Total trade and bills receivables amounted to **RMB1,147,053 thousand**, a slight decrease compared to December 31, 2024[23](index=23&type=chunk) - Credit terms are typically one month, extendable to three months for major customers, with a credit control department to minimize credit risk[23](index=23&type=chunk) Ageing Analysis of Trade Receivables (Net of Impairment Provisions) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 months | 567,263 | 518,522 | | 4 to 6 months | 172,174 | 188,948 | | 7 to 12 months | 138,302 | 117,107 | | Over 1 year | 89,039 | 82,067 | | Total | 966,778 | 906,644 | [Trade and Bills Payables](index=11&type=section&id=Trade%20and%20Bills%20Payables) The Group's total trade and bills payables increased, with a notable rise in payables outstanding for over six months Ageing Analysis of Trade and Bills Payables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 6 months | 338,705 | 366,017 | | Over 6 months | 95,311 | 50,707 | | Total | 434,016 | 416,724 | [Business Review](index=12&type=section&id=Business%20Review) [Domestic and Overseas Market Performance](index=12&type=section&id=Domestic%20and%20Overseas%20Market%20Performance) The Group's domestic market revenue grew significantly but gross margin declined substantially, while overseas market revenue and gross margin both maintained stable growth Domestic and Overseas Market Performance | Market | 2025 Revenue (RMB thousand) | 2025 Gross Margin | 2024 Revenue (RMB thousand) | 2024 Gross 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% | [Domestic Market Performance](index=12&type=section&id=Domestic%20Market%20Performance) Domestic market revenue, segmented by application, shows significant growth in power transmission and distribution and industrial and other sectors, but a decline in electrified transportation, with a general decrease in gross margins across all segments Domestic Market Performance by Application Segment | Application Segment | 2025 Revenue (RMB thousand) | 2025 Gross Margin | 2024 Revenue (RMB thousand) | 2024 Gross 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% | [Power Transmission and Distribution Segment](index=13&type=section&id=Power%20Transmission%20and%20Distribution%20Segment) Revenue in the power transmission and distribution segment grew by 30%, driven by a 123% surge in flexible transmission, while conventional DC transmission revenue declined by 39% due to fewer order deliveries Power Transmission and Distribution Segment Revenue Change | Sub-segment | 2025 Revenue (RMB thousand) | 2024 Revenue (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Conventional DC Transmission | 89,205 | 146,945 | -39% | | Flexible Transmission | 295,960 | 132,914 | 123% | | Other Power Transmission and Distribution | 81,489 | 78,239 | 4% | | Total | 466,654 | 358,098 | 30% | - Conventional DC transmission revenue decreased primarily due to fewer ordered products delivered compared to the same period last year[33](index=33&type=chunk) - Flexible transmission revenue growth was mainly driven by the progressive delivery of ordered products for the Saudi Central-South Project, Gan-Dian-Ru-Zhe Project, and Peru/Chile Distributed Power Flow Controller Project[34](index=34&type=chunk) [Electrified Transportation Segment](index=14&type=section&id=Electrified%20Transportation%20Segment) Overall revenue in the electrified transportation segment decreased by 26%, with significant reductions in rail transit and electric vehicle sub-segments, but a 100% increase in other transportation (e.g., electrified shipping) Electrified Transportation Segment Revenue Change | Sub-segment | 2025 Revenue (RMB thousand) | 2024 Revenue (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Rail Transit | 17,532 | 27,712 | -37% | | Electric Vehicles | 44 | 1,097 | -96% | | Other Transportation | 6,065 | 3,031 | 100% | | Total | 23,641 | 31,840 | -26% | - Rail transit revenue decreased primarily due to reduced orders from rail transit vehicle equipment manufacturers[36](index=36&type=chunk) - Electric vehicle revenue decreased primarily due to reduced orders in the electric vehicle industry[36](index=36&type=chunk) - Other transportation revenue increased primarily due to increased orders in the electrified shipping industry[36](index=36&type=chunk) [Industrial and Other Segments](index=15&type=section&id=Industrial%20and%20Other%20Segments) Revenue in the industrial and other segments grew by 57%, primarily driven by 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 Industrial and Other Segments Revenue Change | Sub-segment | 2025 Revenue (RMB thousand) | 2024 Revenue (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Industrial Control | 196,368 | 151,130 | 30% | | New Energy Generation and Storage | 156,382 | 75,345 | 108% | | Research Institutes and Others | 2,923 | 634 | 361% | | Total | 355,673 | 227,109 | 57% | - 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[38](index=38&type=chunk) [Overseas Market Performance](index=16&type=section&id=Overseas%20Market%20Performance) Overseas market revenue increased by 9%, mainly due to higher sales of laminated busbars, DC-link capacitors, and solid-state DC circuit breakers Overseas Market Performance | Item | 2025 Revenue (RMB thousand) | 2024 Revenue (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Domestic subsidiary products | 4,916 | 2,595 | 89% | | Overseas subsidiary products | 37,436 | 36,116 | 4% | | Total | 42,352 | 38,711 | 9% | - Overseas market revenue growth was primarily due to increased sales of laminated busbars, DC-link capacitors, and solid-state DC circuit breakers[40](index=40&type=chunk) [Financial Review](index=16&type=section&id=Financial%20Review) [Revenue](index=16&type=section&id=Revenue) The Group's revenue increased by 35.5% year-on-year to RMB888.3 million, driven by product deliveries for major transmission projects and increased revenue from self-produced IGBTs - Revenue increased by **35.5%** to **RMB888.3 million**[41](index=41&type=chunk) - This was primarily due to the progressive delivery of products for the Saudi Central-South Project, Gan-Dian-Ru-Zhe Project, and Peru/Chile Distributed Power Flow Controller Project, as well as increased revenue from self-produced Insulated Gate Bipolar Transistors (IGBTs)[41](index=41&type=chunk) [Cost of Sales](index=16&type=section&id=Cost%20of%20Sales) Cost of sales increased by 56.6% year-on-year to RMB659.1 million, primarily in line with revenue growth - Cost of sales increased by **56.6%** to **RMB659.1 million**, primarily due to increased revenue[42](index=42&type=chunk) [Gross Profit and Gross Margin](index=16&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit decreased by 2.3% year-on-year to RMB229.3 million, with gross margin declining from 35.8% to 25.8%, mainly due to a reduced proportion of high-margin products - Gross profit decreased by **2.3%** to **RMB229.3 million**[43](index=43&type=chunk) - Gross margin decreased from **35.8% to 25.8%**, primarily due to a reduced proportion of high-margin products[43](index=43&type=chunk) [Other Income and Gains](index=17&type=section&id=Other%20Income%20and%20Gains) Other income and gains significantly increased by 281.0% to RMB130.7 million, primarily driven by forward foreign exchange contracts and exchange gains - Other income and gains significantly increased by **281.0%** to **RMB130.7 million**, primarily due to forward foreign exchange contracts and exchange gains[44](index=44&type=chunk) [Selling and Distribution Costs](index=17&type=section&id=Selling%20and%20Distribution%20Costs) Selling and distribution costs increased by 27.1% year-on-year to RMB60.9 million, mainly due to higher market development expenses and an increase in sales personnel - Selling and distribution costs increased by **27.1%** to **RMB60.9 million**, primarily due to increased market development expenses and a rise in the number of sales personnel[45](index=45&type=chunk) [Administrative Expenses](index=17&type=section&id=Administrative%20Expenses) Administrative expenses increased by 26.8% year-on-year to RMB106.1 million, mainly due to business development and an increase in management personnel - Administrative expenses increased by **26.8%** to **RMB106.1 million**, primarily due to business development and an increase in the number of management personnel[46](index=46&type=chunk) [Research and Development Costs](index=17&type=section&id=Research%20and%20Development%20Costs) Research and development costs remained relatively stable, with a marginal increase of 0.1% to RMB67.9 million - Research and development costs marginally increased by **0.1%** to **RMB67.9 million**[47](index=47&type=chunk) [Other Expenses and Losses](index=17&type=section&id=Other%20Expenses%20and%20Losses) Other expenses and losses significantly decreased by 85.9% to RMB3.5 million, primarily due to exchange rate fluctuations - Other expenses and losses decreased by **85.9%** to **RMB3.5 million**, primarily due to exchange rate fluctuations[48](index=48&type=chunk) [Finance Costs](index=17&type=section&id=Finance%20Costs) Finance costs marginally increased by 3.5% year-on-year to RMB8.8 million - Finance costs increased by **3.5%** to **RMB8.8 million**[49](index=49&type=chunk) [Profit Before Tax](index=17&type=section&id=Profit%20Before%20Tax) Profit before tax significantly increased from RMB36.3 million to RMB112.8 million - Profit before tax increased from **RMB36.3 million** to **RMB112.8 million**[50](index=50&type=chunk) [Income Tax Expense](index=18&type=section&id=Income%20Tax%20Expense) Income tax expense increased by 77.3% year-on-year to RMB27.3 million, primarily due to increased revenue - Income tax expense increased by **77.3%** to **RMB27.3 million**, primarily due to increased revenue[51](index=51&type=chunk) [Profit and Total Comprehensive Income Attributable to Owners of the Parent](index=18&type=section&id=Profit%20and%20Total%20Comprehensive%20Income%20Attributable%20to%20Owners%20of%20the%20Parent) Net profit margin improved from 5.1% to 10.6%, with profit attributable to owners of the parent surging by 178.3% to RMB93.8 million, and total comprehensive income increasing by 150.0% to RMB82.5 million - Net profit margin increased from approximately **5.1%** to approximately **10.6%**[52](index=52&type=chunk) - Profit attributable to owners of the parent significantly increased by **178.3%** to **RMB93.8 million**[52](index=52&type=chunk) - Total comprehensive income attributable to owners of the parent increased by **150.0%** to **RMB82.5 million**[52](index=52&type=chunk) [Inventories](index=18&type=section&id=Inventories) Inventories decreased by 12.4% to RMB253.9 million, and the average inventory turnover days reduced from 94 to 82, indicating improved inventory management efficiency - Inventories decreased by **12.4%** to **RMB253.9 million**[53](index=53&type=chunk) - Average inventory turnover days decreased from approximately **94 days** to approximately **82 days**[53](index=53&type=chunk) [Trade and Bills Receivables](index=18&type=section&id=Trade%20and%20Bills%20Receivables) Trade and bills receivables slightly decreased by 1.2% to RMB1,147.1 million, with average turnover days reducing from 233 to 204, indicating improved collection efficiency - Trade and bills receivables decreased by **1.2%** to **RMB1,147.1 million**[54](index=54&type=chunk) - Average turnover days decreased from approximately **233 days** to approximately **204 days**[54](index=54&type=chunk) [Trade and Bills Payables](index=18&type=section&id=Trade%20and%20Bills%20Payables) Trade and bills payables increased by 4.2% to RMB434.0 million, primarily due to increased inventories, while average turnover days slightly decreased - Trade and bills payables increased by **4.2%** to **RMB434.0 million**, primarily due to increased inventories[55](index=55&type=chunk) - Average turnover days decreased from approximately **120 days** to approximately **116 days**[55](index=55&type=chunk) [Liquidity and Financial Resources](index=19&type=section&id=Liquidity%20and%20Financial%20Resources) The Group's current ratio remained stable at around 2.2, with increased cash and cash equivalents, reduced interest-bearing bank and other borrowings, and a capital gearing ratio decreasing to 13.9%, indicating a sound financial position - The current ratio remained stable at approximately **2.2**[56](index=56&type=chunk) - Cash and cash equivalents increased by **9.4%** to **RMB454.7 million**[56](index=56&type=chunk) - Interest-bearing bank and other borrowings decreased by **4.7%** to **RMB285.3 million**[56](index=56&type=chunk) - The capital gearing ratio decreased from approximately **15.0%** to approximately **13.9%**[56](index=56&type=chunk) [Foreign Currency Risk](index=19&type=section&id=Foreign%20Currency%20Risk) The Group faces transactional currency risk and mitigates exchange rate risk by entering into forward currency contracts with reputable banks - The Group faces transactional currency risk and has entered into forward currency contracts with reputable banks to hedge exchange rate risk[58](index=58&type=chunk) [Contingent Liabilities](index=19&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - The Group had no significant contingent liabilities as of June 30, 2025[59](index=59&type=chunk) [Pledge of Group's Assets](index=19&type=section&id=Pledge%20of%20Group%27s%20Assets) Certain of the Group's bills payables are secured by bills receivables, while bank loans are secured by land use rights and buildings, plant, and machinery - Certain bills payables are secured by bills receivables of approximately **RMB50.1 million**[60](index=60&type=chunk) - Bank loans of **RMB78.7 million** are secured by land use rights with a net book value of approximately **RMB15.8 million** and buildings, plant, and machinery of **RMB324.1 million**[61](index=61&type=chunk) [Other Information](index=20&type=section&id=Other%20Information) [Events After the Reporting Period](index=20&type=section&id=Events%20After%20the%20Reporting%20Period) Subsequent to the reporting period, Saijing Semiconductor signed capital increase and equity transfer agreements with investors, involving the issuance of new registered capital to acquire Hunan Hongan's entire equity, which will dilute the Company's equity interest in Saijing Semiconductor - Saijing Semiconductor will issue new registered capital of **RMB180,000,000** to investors, representing approximately **9.00%** of the enlarged equity[62](index=62&type=chunk) - Investors will settle the subscription price by transferring their entire equity interest in Hunan Hongan to Saijing Semiconductor[62](index=62&type=chunk) - Upon completion of the transaction, the Company's equity interest in Saijing Semiconductor will decrease from approximately **70.5406%** to approximately **64.1918%**[62](index=62&type=chunk) [Human Resources](index=20&type=section&id=Human%20Resources) As of June 30, 2025, the Group had 1,066 employees, with a diverse compensation package, a focus on internal management training and development, and good working relationships with employees - The Group had a total of **1,066 employees**[64](index=64&type=chunk) - The compensation package includes basic salaries, medical insurance, discretionary cash bonuses, retirement benefit schemes, and share options[64](index=64&type=chunk) - The Group emphasizes establishing internal management training and development systems and maintains good working relationships with its employees[64](index=64&type=chunk) [Business Outlook](index=21&type=section&id=Business%20Outlook) In the second half of 2025, the Group will continue to deliver existing transmission project orders, strive for new UHV DC project orders, and intensify R&D and market expansion for self-developed power semiconductor products, especially in emerging fields like electrified vessels and controllable nuclear fusion - In the second half of 2025, the Group will continue to advance product deliveries for multiple conventional DC and flexible transmission projects, including the Shaan-Anhui Project, Saudi Central-South Project, and Gan-Dian-Ru-Zhe Project[65](index=65&type=chunk) - The Group aims to secure new orders in tenders for the Southeast Tibet Project, Inner Mongolia West to Beijing-Tianjin-Hebei Project, and other newly approved UHV DC projects[65](index=65&type=chunk) - The Group will continue to intensify technological R&D and market expansion for self-developed power semiconductor products, focusing on promoting cutting-edge technologies such as solid-state switches and pulsed power switches in emerging fields like electrified vessels and controllable nuclear fusion[65](index=65&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=21&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) The Company repurchased 1,296,000 shares for approximately HK$1,524,145 during the six months ended June 30, 2025, to enhance market price per share and investor confidence, holding repurchased shares as treasury shares with no sales during the period - The Company repurchased a total of **1,296,000 shares** for approximately **HK$1,524,145** during the six months ended June 30, 2025[66](index=66&type=chunk) - The repurchased shares are held as treasury shares, with no treasury shares sold during the period[66](index=66&type=chunk) - The repurchases aim to enhance the market price per share and improve investor confidence in the Company[67](index=67&type=chunk) [Corporate Governance](index=22&type=section&id=Corporate%20Governance) The Company highly values corporate governance practices, has adopted the Corporate Governance Code in Appendix C1 of the Listing Rules, and complied with all applicable code provisions during the period - The Company has adopted the Corporate Governance Code set out in Appendix C1 to the Listing Rules[68](index=68&type=chunk) - For the six months ended June 30, 2025, the Company complied with the applicable code provisions set out in Part 2 of the Corporate Governance Code[68](index=68&type=chunk) [Standard Code for Securities Transactions by Directors](index=22&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as its code of conduct for directors' securities transactions and confirms compliance by directors during the period - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 to the Listing Rules[69](index=69&type=chunk) - Following enquiry, the Company confirmed that the directors have complied with the required standards set out in the Standard Code throughout the period[69](index=69&type=chunk) [Review of Financial Statements by Audit Committee](index=22&type=section&id=Review%20of%20Financial%20Statements%20by%20Audit%20Committee) The Board's Audit Committee has reviewed the Group's accounting principles, risk management, internal controls, and financial reporting matters, including the condensed consolidated interim financial statements for the six months ended June 30, 2025 - The Audit Committee has reviewed the Group's accounting principles, risk management, internal controls, and financial reporting matters, including the condensed consolidated interim financial statements[70](index=70&type=chunk) [Declaration of Dividend and Closure of Register of Members](index=22&type=section&id=Declaration%20of%20Dividend%20and%20Closure%20of%20Register%20of%20Members) The Board resolved to declare an interim dividend of HK$0.01 per share and will suspend share transfer registration from October 6 to October 8, 2025, to determine shareholders entitled to the dividend - The Board resolved to declare an interim dividend of **HK$0.01 per share**, expected to be paid on or about October 22, 2025[71](index=71&type=chunk) - To determine shareholders entitled to the interim dividend, the register of members will be closed from **October 6 to October 8, 2025**[72](index=72&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=23&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This announcement has been published on the HKEX and Company websites, and the 2025 interim report will be published on both websites and sent to shareholders upon request - This announcement has been published on the HKEX website (www.hkexnews.hk) and the Company's website (www.sunking-tech.com)[73](index=73&type=chunk) - The Company's 2025 interim report will be published on both websites in due course and sent to shareholders upon request[73](index=73&type=chunk) [Webcast](index=23&type=section&id=Webcast) The Company will host an earnings webcast on August 25, 2025, to discuss the interim results for the six months ended June 30, 2025 - The Company will host an earnings webcast on **Monday, August 25, 2025, from 10:00 AM to 11:00 AM (Hong Kong time)**[74](index=74&type=chunk) - The webcast will be conducted via Tencent Meeting, with meeting ID **710-461-155**[75](index=75&type=chunk) [Board of Directors](index=23&type=section&id=Board%20of%20Directors) As of the date of this announcement, the Board of Directors comprises three executive directors and four independent non-executive directors - The executive directors are Mr Xiang Jie, Mr Gong Renyuan, and Mr Yue Zhoumin[76](index=76&type=chunk) - The independent non-executive directors are Mr Chen Shimin, Mr Zhang Xuejun, Mr Liang Mingxu, and Ms Cai Ge[76](index=76&type=chunk)

Core Viewpoint - The company reported a significant increase in revenue and profit for the six months ending June 30, 2025, driven by various engineering projects and product deliveries [1] Financial Performance - Revenue reached 888 million RMB, representing a year-on-year growth of 35.5% [1] - Profit attributable to the parent company was 93.773 million RMB, showing a substantial increase of 178% compared to the previous year [1] - Basic earnings per share were 5.85 cents, with a proposed interim dividend of 0.01 HKD per share [1] Project Contributions - The revenue growth was primarily attributed to the delivery of products related to the Saudi Central South Project, the Gan Dian Ru Zhe Project, and the distributed flow controller projects in Peru and Chile [1] - Increased income from self-produced Insulated Gate Bipolar Transistors (IGBTs) also contributed to the revenue growth [1]

Core Viewpoint - The company, Sai Jing Technology (00580), reported a significant increase in revenue and profit for the six months ending June 30, 2025, indicating strong operational performance and growth potential in its projects [1] Financial Performance - Revenue reached 888 million RMB, representing a year-on-year growth of 35.5% [1] - Profit attributable to the parent company was 93.773 million RMB, showing a substantial increase of 178% compared to the previous year [1] - Basic earnings per share were 5.85 cents, with a proposed interim dividend of 0.01 HKD per share [1] Project Contributions - The revenue increase was primarily driven by the delivery of products related to the Saudi Central South Project, the Gan Dian Ru Zhe Project, and the distributed flow controller projects in Peru and Chile [1] - Additionally, there was a rise in revenue from self-produced insulated gate bipolar transistors [1]

Core Insights - The company reported a revenue increase of approximately 35.5% to around RMB 888 million for the six months ending June 30, 2025 [1] - The profit attributable to the parent company was approximately RMB 93.8 million, with earnings per share of about RMB 0.0585 (basic and diluted) [1] Revenue Growth Drivers - The revenue growth was primarily driven by the delivery of products related to projects in Saudi Arabia, the Gandean project in Zhejiang, and distributed power flow controller projects in Peru and Chile [1] - Revenue from overseas markets increased by approximately 9% compared to the same period in 2024, attributed to higher sales of products such as laminated busbars, DC support capacitors, and solid-state DC circuit breakers [1]

[Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) [Interim Performance Overview](index=1&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) For the six months ended June 30, 2025, the Group achieved significant revenue growth, but gross profit and gross margin declined, while profit attributable to owners of the parent and earnings per share both increased | Indicator | Six Months Ended June 30, 2025 (RMB million) | Same Period in 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 888.3 | 655.8 | +35.5% | | Gross Profit | 229.3 | 234.8 | -2.3% | | Gross Margin | 25.8% | 35.8% | -10.0pp | | Profit Attributable to Owners of the Parent | 93.8 | 33.7 | +178.3% | | Earnings Per Share (Basic) | RMB 5.85 cents | RMB 2.09 cents | +179.9% | | Earnings Per Share (Diluted) | RMB 5.85 cents | RMB 2.09 cents | +179.9% | [Interim Condensed Consolidated Financial Statements](index=2&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) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%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 the six months ended June 30, 2025, the Group's revenue increased by 35.5% year-on-year, profit for the period significantly grew to RMB 85.47 million, and profit attributable to owners of the parent was RMB 93.773 million | Indicator | June 30, 2025 (RMB thousand) | June 30, 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 the Parent | 93,773 | 33,722 | | Basic Earnings Per Share | RMB 5.85 cents | RMB 2.09 cents | [Condensed Consolidated Statement of Financial Position](index=4&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%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the Group's total non-current and current assets both increased, with net assets reaching RMB 2,057.99 million and equity attributable to owners of the parent at RMB 1,997.983 million | 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 Assets | 2,057,990 | 1,995,956 | | Equity Attributable to Owners of the Parent | 1,997,983 | 1,924,376 | [Notes to the Interim Condensed Consolidated Financial Statements](index=6&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%E9%99%84%E8%A8%BB) [Company Information](index=6&type=section&id=1.%20%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) Sunking Technology Group Limited is incorporated in the Cayman Islands, with ordinary shares listed on the Hong Kong Stock Exchange, primarily engaged in trading and manufacturing power electronic components, with financial information presented in RMB - The Company was incorporated in the Cayman Islands on March 19, 2010, and listed on the Main Board of the Hong Kong Stock Exchange on October 13, 2010[9](index=9&type=chunk) - The Group's principal activities are the trading and manufacturing of power electronic components[10](index=10&type=chunk) - The interim condensed consolidated financial information is presented in RMB[11](index=11&type=chunk) [Changes in Accounting Policies](index=6&type=section&id=2.%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E7%9A%84%E8%AE%8A%E5%8B%95) The Group first adopted the revised IAS 21 (Lack of Exchangeability) in the current period, but it had no impact on the interim condensed consolidated financial information as the Group's transaction and functional currencies are exchangeable - The Group first adopted the revised International Accounting Standard 21 "Lack of Exchangeability" in the current period[12](index=12&type=chunk)[13](index=13&type=chunk) - This revision had no impact on the interim condensed consolidated financial information as the Group's transaction and functional currencies are exchangeable[13](index=13&type=chunk) [Operating Segment Information](index=6&type=section&id=3.%20%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group operates a single reportable operating segment, which is the manufacturing and trading of power electronic components, with over 95% of revenue and all non-current assets attributable to mainland China, thus no other geographical segment information is provided - The Group operates a single reportable operating segment, primarily engaged in the manufacturing and trading of power electronic components[14](index=14&type=chunk) - Over **95%** of the Group's revenue (December 31, 2024: over 94%) is attributable to customers in mainland China, and all non-current assets are located in mainland China[15](index=15&type=chunk) [Revenue, Other Income and Gains](index=7&type=section&id=4.%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) Revenue from contracts with customers primarily from sales of power electronic components increased by 35.5% year-on-year, while other income and gains significantly increased by 281.0%, mainly due to government grants, bank interest income, and net fair value gains on forward foreign exchange contracts and exchange gains | Item | June 30, 2025 (RMB thousand) | June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue from Contracts with Customers (Sales of Power Electronic Components) | 888,320 | 655,758 | | Total Other Income and Gains | 130,747 | 34,335 | | Of which: Government Grants | 33,270 | 20,348 | | Net Exchange Gains | 31,342 | – | | Net Fair Value Gains on Forward Foreign Exchange Contracts | 59,939 | – | - Other income and gains significantly increased by approximately **281.0%**, primarily due to net fair value gains on forward foreign exchange contracts and exchange gains[16](index=16&type=chunk)[44](index=44&type=chunk) [Profit Before Tax](index=8&type=section&id=5.%20%E9%99%A4%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9) The Group's profit before tax significantly increased, positively impacted by higher other income and gains and reduced exchange losses, while cost of sales, depreciation, amortization, and impairment expenses also increased | Item | June 30, 2025 (RMB thousand) | June 30, 2

Group 1: National Grid Developments - The National Grid announced the commissioning of the Ningxia-Hunan ±800 kV UHVDC project, which is China's first UHV transmission channel primarily for renewable energy from the "Shagehuang" wind and solar base, enhancing clean energy distribution and power supply security [1] - The Shaanxi-Anhui ±800 kV UHVDC project is currently in the installation phase of core equipment, with a planned completion date in the first half of 2026 [1] - Since the beginning of the 14th Five-Year Plan, the National Grid has completed over 18,000 kilometers of UHV projects, with a total of 41 projects in operation, increasing cross-regional transmission capacity to over 350 million kW, a 30% increase from the end of the 13th Five-Year Plan [1] Group 2: Investment Insights - Guojin Securities reported that the total investment for the Yarlung Tsangpo River downstream hydropower project in Tibet is 1.2 trillion yuan, with an installed capacity exceeding 60 GW and an expected annual generation of 3,000 billion kWh, which will significantly boost demand for UHV and GIL equipment [2] - Huatai Securities noted that from January to May this year, the total investment in China's power grid reached 204 billion yuan, a 19.8% increase year-on-year, with strong demand for main network bidding [2] - The recent acceleration in UHV construction and the approval of two new DC lines are expected to support the performance growth of companies in the sector, with a projected increase in market share under the new procurement model [2] Group 3: Company-Specific Developments - Saijing Technology announced a total procurement agreement worth 624 million yuan for power electronic devices to be used in the Gansu-Zhejiang ±800 kV UHVDC project, indicating strong demand for UHV technology [3] - The company also signed a contract worth approximately 479 million yuan for power electronic devices for a project in Saudi Arabia, showcasing its international market expansion efforts [3] - Weisheng Holdings reported a 50% year-on-year increase in overseas market revenue, reaching 2.397 billion yuan, which now accounts for 27% of total revenue, reflecting a balanced global market presence [4]

Core Viewpoint - Sai Crystal Technology (00580) has seen a significant stock price increase, with an early morning rise of over 9%, currently trading at 1.81 HKD, with a transaction volume of 27.748 million HKD. The company is set to hold a board meeting on August 22 to approve its interim results, following a profit warning indicating a projected net profit of approximately 90 million RMB for the first half of the year, representing a year-on-year increase of about 167% [1][1][1]. Financial Performance - The company anticipates a revenue growth of approximately 34% to 880 million RMB for the first half of the year, attributed to the delivery of engineering project products and increased revenue from self-produced Insulated Gate Bipolar Transistors (IGBTs) [1][1][1]. Strategic Developments - Sai Crystal Semiconductor, a subsidiary of the company, has signed a share transfer agreement with investors to acquire all shares of Hunan Hong'an for a total consideration of 180 million RMB. Management believes that this acquisition will create significant synergies in Silicon Carbide (SiC) technology and enhance customer resources and upstream supply chain resources for Sai Crystal [1][1][1].

Core Viewpoint - Sijian Technology (00580) is experiencing a significant stock price increase, attributed to positive earnings expectations and strategic developments in its business operations [1] Financial Performance - The company anticipates a net profit of approximately 90 million RMB for the first half of the year, representing a year-on-year growth of about 167% [1] - Revenue is expected to grow by approximately 34% to 880 million RMB, driven by the delivery of engineering project products and increased sales of self-produced insulated gate bipolar transistors [1] Strategic Developments - Sijian Semiconductor, a subsidiary of the company, has signed a share transfer agreement with investors to acquire all shares of Hunan Hong'an for a total consideration of 180 million RMB [1] - Management believes that the acquisition will create significant synergies in silicon carbide (SiC) technology and enhance customer resources and upstream supply chain resources for Sijian [1] - This transaction is considered strategically important for the long-term development of Sijian Semiconductor [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不對因本公告的全部或任何部分內容而產生或因倚賴該等 內容而引致的任何損失承擔任何責任。 須予披露交易－ 視作出售賽晶半導體的股權 及收購湖南虹安的股權的 補充公告 茲提述賽晶科技集團有限公司日期為二零二五年七月十三日的公告，內容有關兩宗須予披露交易 （「原公告」）。本公告所用其他詞彙與原公告所界定者具有相同涵義。 有關認購價的釐定基準的進一步資料 誠如原公告所披露，認購價乃經考慮賽晶半導體的市場地位、投資者對賽晶半導體前景的評估以及 賽晶半導體與投資者之間的預期協同效應等其他商業因素後，由雙方基於自願、平等及公平的原則 磋商釐定。 1 董事謹此補充： 由證券及期貨事務監察委員會頒佈的《有關董事在企業交易估值方面的責任指引》訂明指引，列出董 事應考慮是否需要委任獨立估值師的情況，其中包括：(a)如董事本身對該目標公司所屬的業務範疇 或對估值並無充分經驗或專業知識；(b)如目標公司所屬的業務屬全新業務或仍處於初始階段；(c)必 須就所獲得關乎該目標公司所屬業務的資料徵詢專業人士的意見或將該等 ...

(Incorporated in the Cayman Islands with limited liability) Stock code NOTIFICATION LETTER 通知信函 Dear Non-Registered Holder (Note) , The English and Chinese versions of the Company's Current Corporate Communications (Note) are 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) respectively (the "Website Version"). The Company strongly recommends you to access the Website Version of Current Corpora ...