[Financial Summary](index=1&type=section&id=Financial%20Summary) This section provides a concise overview of the Group's key financial performance and position for the six months ended June 30, 2025 截至2025年6月30日止六个月财务摘要（人民币百万元） | Indicator | For the six months ended June 30, 2025 (RMB million) | For the six months ended June 30, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 2,342.5 | 2,521.6 | (7.1%) | | Gross Profit | 443.9 | 558.5 | (20.5%) | | Profit attributable to equity holders of the Company | 203.6 | 184.4 | 10.4% | | Basic Earnings Per Share (RMB) | 0.075 | 0.067 | 11.9% | | Diluted Earnings Per Share (RMB) | 0.075 | 0.067 | 11.9% | | Gross Profit Margin | 18.9% | 22.1% | (3.2 percentage points) | | Net Profit Margin | 9.3% | 8.3% | 1.0 percentage point | | **Statement of Financial Position (Period-end)** | As of June 30, 2025 (RMB million) | As of December 31, 2024 (RMB million) | Change | | Net Assets | 7,808.5 | 7,452.7 | 4.8% | | Net Debt | 2,348.6 | 2,459.7 | (4.5%) | | Net Gearing Ratio | 30.1% | 33.0% | (2.9 percentage points) | [Financial Statements](index=2&type=section&id=Financial%20Statements) This section presents the consolidated financial statements, including the statements of profit or loss, comprehensive income, and financial position [Consolidated Statement of Profit or Loss](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the company's revenue decreased by 7.1% year-on-year to RMB 2,342,495 thousand, and gross profit decreased by 20.5% to RMB 443,875 thousand; however, profit attributable to equity holders of the Company increased by 10.4% to RMB 203,583 thousand due to significant growth in other income and reduced net finance costs 截至2025年6月30日止六个月综合损益表（人民币千元） | Indicator | For the six months ended June 30, 2025 (RMB thousand) | For the six months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 2,342,495 | 2,521,648 | | Cost of Sales | (1,898,620) | (1,963,178) | | Gross Profit | 443,875 | 558,470 | | Other Income | 170,171 | 48,306 | | Profit from Operations | 301,886 | 296,802 | | Net Finance Costs | (64,537) | (75,973) | | Profit Before Income Tax | 237,832 | 222,182 | | Income Tax | (19,213) | (11,943) | | Profit for the Period | 218,619 | 210,239 | | Profit attributable to equity holders of the Company | 203,583 | 184,371 | | Non-controlling Interests | 15,036 | 25,868 | | Basic and Diluted Earnings Per Share (RMB) | 0.075 | 0.067 | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's profit for the period was RMB 218,619 thousand, but net other comprehensive income was negative due to exchange differences on translation of financial statements of entities with functional currencies other than RMB, resulting in total comprehensive income for the period decreasing to RMB 207,934 thousand, lower than the prior year 截至2025年6月30日止六个月综合损益及其他全面收益表（人民币千元） | Indicator | For the six months ended June 30, 2025 (RMB thousand) | For the six months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the Period | 218,619 | 210,239 | | Equity investments at fair value through other comprehensive income — Net change in fair value reserve | 5,817 | 116 | | Exchange differences on translation of financial statements of entities with functional currencies other than RMB | (8,122) | (29,671) | | Other Comprehensive Income for the Period | (2,305) | (29,555) | | Total Comprehensive Income for the Period | 207,934 | 189,064 | | Attributable to equity holders of the Company | 182,013 | 174,376 | | Non-controlling Interests | 25,921 | 14,688 | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets increased compared to the end of 2024, primarily due to growth in current assets, especially cash and cash equivalents and trade and other receivables, with net assets and total equity rising and the net gearing ratio decreasing, indicating an improved financial position 截至2025年6月30日综合财务状况表（人民币千元） | Indicator | As of June 30, 2025 (RMB thousand) | As of December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 4,297,420 | 4,392,861 | | Intangible Assets | 53,670 | 56,224 | | Total Non-current Assets | 5,234,961 | 5,348,259 | | **Current Assets** | | | | Inventories | 2,581,172 | 2,524,870 | | Trade and Other Receivables | 3,900,869 | 3,543,048 | | Cash and Cash Equivalents | 1,282,028 | 1,068,922 | | Total Current Assets | 8,538,187 | 7,937,590 | | **Current Liabilities** | | | | Trade and Other Payables | 1,533,160 | 1,452,755 | | Interest-bearing Borrowings | 1,855,966 | 1,827,473 | | Total Current Liabilities | 4,294,474 | 4,298,946 | | **Non-current Liabilities** | | | | Interest-bearing Borrowings | 1,599,073 | 1,457,193 | | Total Non-current Liabilities | 1,670,179 | 1,534,165 | | **Net Assets/Total Equity** | 7,808,495 | 7,452,738 | | Total Equity attributable to equity holders of the Company | 7,270,241 | 7,093,077 | | Non-controlling Interests | 538,254 | 359,661 | [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the consolidated financial statements, covering reporting entity, accounting policies, and key financial items [1. Reporting Entity](index=6&type=section&id=1.%20Reporting%20Entity) Tiangong International Company Limited was incorporated in the Cayman Islands on August 14, 2006, and this interim financial report covers the company and its subsidiaries (the Group) as well as its interests in associates and jointly controlled entities - The Company was incorporated in the Cayman Islands as an exempted company on **August 14, 2006**[10](index=10&type=chunk) - The interim financial report comprises the Company and its subsidiaries (the Group) and the Group’s interests in associates and jointly controlled entities[10](index=10&type=chunk) [2. Basis of Preparation](index=6&type=section&id=2.%20Basis%20of%20Preparation) This interim financial report is prepared in accordance with the HKEX Listing Rules and International Accounting Standard 34 'Interim Financial Reporting', and has been reviewed by KPMG; the accounting policies adopted are consistent with the 2024 annual financial statements, except for policy changes expected to be reflected in the 2025 annual report - The Group’s interim financial report has been prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, including compliance with International Accounting Standard 34 “Interim Financial Reporting” issued by the International Accounting Standards Board[11](index=11&type=chunk) - The interim financial report is unaudited, but has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” issued by the Hong Kong Institute of Certified Public Accountants[13](index=13&type=chunk) - The accounting policies adopted in the preparation of the interim financial report are consistent with those applied in the 2024 annual financial statements, except for the changes in accounting policies that are expected to be reflected in the 2020 annual financial statements[12](index=12&type=chunk) [3. Changes in Accounting Policies](index=7&type=section&id=3.%20Changes%20in%20Accounting%20Policies) The Group has applied amendments to IAS 21 'The Effects of Changes in Foreign Exchange Rates—Lack of Exchangeability', but these amendments have no material impact on this interim report as the Group has not undertaken any foreign currency non-exchangeable transactions; no other new standards or interpretations have been applied in this period - The Group has applied the amendments to International Accounting Standard 21 “The Effects of Changes in Foreign Exchange Rates—Lack of Exchangeability” issued by the International Accounting Standards Board to the interim financial report for the current accounting period[15](index=15&type=chunk) - As the Group has not undertaken any foreign currency transactions where foreign currency is not exchangeable into another currency, these amendments have no material impact on this interim report[15](index=15&type=chunk) - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period[16](index=16&type=chunk) [4. Revenue and Segment Reporting](index=7&type=section&id=4.%20Revenue%20and%20Segment%20Reporting) The Group's revenue primarily derives from sales of high-alloy steel (die steel and high-speed steel), cutting tools, titanium alloys, and other products; for the six months ended June 30, 2025, total revenue was RMB 2,342,495 thousand, a 7.1% decrease year-on-year, with die steel remaining the largest revenue source, but all major product segments experienced revenue declines, particularly cutting tools and titanium alloys, while China market revenue remained stable, North America and Europe markets significantly declined, and Asia (excluding China) market grew - Revenue mainly refers to the sales value of high-alloy steel (including die steel and high-speed steel), cutting tools, titanium alloys, and others after offsetting intercompany transactions[17](index=17&type=chunk) - The Group has five reportable segments: die steel, high-speed steel, cutting tools, titanium alloys, and others, with the Chairman (chief operating decision maker) reviewing internal management reports at least monthly[19](index=19&type=chunk) - The measure used for reporting segment profit is "Adjusted EBIT", which stands for "Adjusted Earnings Before Interest and Tax"[20](index=20&type=chunk) [4(a) Revenue](index=7&type=section&id=4(a)%20Revenue) The Group's revenue primarily derives from sales of high-alloy steel (die steel and high-speed steel), cutting tools, titanium alloys, and other products; for the six months ended June 30, 2025, total revenue was RMB 2,342,495 thousand, a 7.1% decrease compared to the prior year - Revenue mainly refers to the sales value of high-alloy steel (including die steel and high-speed steel), cutting tools, titanium alloys, and others after offsetting intercompany transactions[17](index=17&type=chunk) 按产品分类的客户合約营业额分拆（人民币千元） | Product Category | For the six months ended June 30, 2025 (RMB thousand) | For the six months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Die Steel | 1,154,590 | 1,181,417 | | High-Speed Steel | 394,434 | 436,145 | | Cutting Tools | 397,365 | 463,607 | | Titanium Alloys | 348,786 | 384,832 | | Others | 47,320 | 55,647 | | **Total** | **2,342,495** | **2,521,648** | [4(b) Segment Reporting](index=8&type=section&id=4(b)%20Segment%20Reporting) The Group's reportable segments include die steel, high-speed steel, cutting tools, titanium alloys, and others, with the Chairman reviewing internal management reports monthly to assess segment performance and allocate resources; segment profit is measured by 'Adjusted EBIT', and as of June 30, 2025, total reportable segment revenue was RMB 2,480,802 thousand, with total profit (Adjusted EBIT) of RMB 227,720 thousand 截至2025年6月30日止六个月可报告分部业绩（人民币千元） | Segment | Revenue from External Customers (RMB thousand) | Inter-segment Revenue (RMB thousand) | Reportable Segment Revenue (RMB thousand) | Reportable Segment Profit (Adjusted EBIT) (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Die Steel | 1,154,590 | 40 | 1,154,630 | 36,939 | | High-Speed Steel | 394,434 | 135,751 | 530,185 | 37,981 | | Cutting Tools | 397,365 | 2,516 | 399,881 | 81,662 | | Titanium Alloys | 348,786 | – | 348,786 | 68,539 | | Others | 47,320 | – | 47,320 | 2,599 | | **Total** | **2,342,495** | **138,307** | **2,480,802** | **227,720** | [4(b)(i) Segment Results, Assets and Liabilities](index=8&type=section&id=4(b)(i)%20Segment%20Results,%20Assets%20and%20Liabilities) As of June 30, 2025, the die steel segment contributed the highest external revenue and assets, while the cutting tools segment contributed the highest Adjusted EBIT; compared to the prior year, most segments experienced declines in external revenue and Adjusted EBIT, with significant profit decreases in cutting tools and titanium alloys 截至2025年6月30日止六个月可报告分部业绩（人民币千元） | Segment | Revenue from External Customers (RMB thousand) | Inter-segment Revenue (RMB thousand) | Reportable Segment Revenue (RMB thousand) | Reportable Segment Profit (Adjusted EBIT) (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Die Steel | 1,154,590 | 40 | 1,154,630 | 36,939 | | High-Speed Steel | 394,434 | 135,751 | 530,185 | 37,981 | | Cutting Tools | 397,365 | 2,516 | 399,881 | 81,662 | | Titanium Alloys | 348,786 | – | 348,786 | 68,539 | | Others | 47,320 | – | 47,320 | 2,599 | | **Total** | **2,342,495** | **138,307** | **2,480,802** | **227,720** | 截至2025年6月30日可报告分部资产及负债（人民币千元） | Segment | Reportable Segment Assets (RMB thousand) | Reportable Segment Liabilities (RMB thousand) | | :--- | :--- | :--- | | Die Steel | 5,677,916 | 669,731 | | High-Speed Steel | 2,632,970 | 316,143 | | Cutting Tools | 1,905,324 | 195,556 | | Titanium Alloys | 831,550 | 241,121 | | Others | 139,292 | 52,067 | | **Total** | **11,187,052** | **1,474,618** | 截至2024年6月30日止六个月可报告分部业绩（人民币千元） | Segment | Revenue from External Customers (RMB thousand) | Inter-segment Revenue (RMB thousand) | Reportable Segment Revenue (RMB thousand) | Reportable Segment Profit (Adjusted EBIT) (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Die Steel | 1,181,417 | – | 1,181,417 | 30,942 | | High-Speed Steel | 436,145 | 179,145 | 615,290 | 42,137 | | Cutting Tools | 463,607 | 2,634 | 466,241 | 122,994 | | Titanium Alloys | 384,832 | – | 384,832 | 119,896 | | Others | 55,647 | – | 55,647 | 10,590 | | **Total** | **2,521,648** | **181,779** | **2,703,427** | **326,559** | [4(b)(ii) Reconciliation of Reportable Segment Revenue, Profit or Loss, Assets and Liabilities](index=10&type=section&id=4(b)(ii)%20Reconciliation%20of%20Reportable%20Segment%20Revenue,%20Profit%20or%20Loss,%20Assets%20and%20Liabilities) This section provides a reconciliation of reportable segment revenue, profit, assets, and liabilities to the corresponding totals in the consolidated financial statements; as of June 30, 2025, consolidated revenue was RMB 2,342,495 thousand after inter-segment eliminations, consolidated profit before income tax was RMB 237,832 thousand, total consolidated assets were RMB 13,773,148 thousand, and total consolidated liabilities were RMB 5,964,653 thousand 可报告分部营业额对账（人民币千元） | Indicator | For the six months ended June 30, 2025 (RMB thousand) | For the six months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Reportable Segment Revenue | 2,480,802 | 2,703,427 | | Elimination of Inter-segment Revenue | (138,307) | (181,779) | | **Consolidated Revenue** | **2,342,495** | **2,521,648** | 可报告分部溢利对账（人民币千元） | Indicator | For the six months ended June 30, 2025 (RMB thousand) | For the six months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Reportable Segment Profit | 227,720 | 326,559 | | Net Finance Costs | (64,537) | (75,973) | | Share of Profits less Losses of Associates | 1,758 | (1,767) | | Share of Profits less Losses of Joint Ventures | (405) | 2,250 | | Other Unallocated Head Office and Corporate Profit/(Loss) | 74,166 | (29,757) | | **Consolidated Profit Before Income Tax** | **237,832** | **222,182** | 可报告分部资产及负债对账（人民币千元） | Indicator | As of June 30, 2025 (RMB thousand) | As of December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Reportable Segment Assets | 11,187,052 | 10,873,305 | | Interests in Associates | 102,743 | 103,781 | | Interests in Joint Ventures | 27,807 | 25,141 | | Other Financial Assets | 262,869 | 265,070 | | Deferred Tax Assets | 105,980 | 117,871 | | Pledged Deposits | 115,980 | 134,494 | | Cash and Cash Equivalents | 1,282,028 | 1,068,922 | | Other Unallocated Head Office and Corporate Assets | 30,551 | 31,009 | | **Total Consolidated Assets** | **13,773,148** | **13,285,849** | | Reportable Segment Liabilities | 1,474,618 | 1,459,538 | | Interest-bearing Borrowings | 3,455,039 | 3,284,666 | | Current Tax | 20,179 | 35,042 | | Deferred Tax Liabilities | 44,989 | 46,874 | | Other Financial Liabilities | 885,169 | 983,676 | | Other Unallocated Head Office and Corporate Liabilities | 84,659 | 23,315 | | **Total Consolidated Liabilities** | **5,964,653** | **5,833,111** | [4(b)(iii) Geographical Information](index=11&type=section&id=4(b)(iii)%20Geographical%20Information) The Group operates globally, primarily across four economic regions: China, North America, Europe, and Asia (excluding China); for the six months ended June 30, 2025, China market revenue remained stable, Asia (excluding China) market grew significantly, while North America and Europe markets experienced substantial declines - The Group manages its business globally, primarily across four major economic regions: China, North America, Europe, and Asia (excluding China)[34](index=34&type=chunk) 按地区市场分拆的客户合約营业额（人民币千元） | Region | For the six months ended June 30, 2025 (RMB thousand) | For the six months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | China | 1,332,163 | 1,329,097 | | North America | 257,786 | 461,499 | | Europe | 379,905 | 430,755 | | Asia (excluding China) | 361,306 | 286,312 | | Others | 11,335 | 13,985 | | **Total** | **2,342,495** | **2,521,648** | [5. Other Income](index=12&type=section&id=5.%20Other%20Income) For the six months ended June 30, 2025, the Group's other income significantly increased to RMB 170,171 thousand, primarily driven by a substantial rise in exchange gains and an increase in government grants 其他收入明细（人民币千元） | Item | For the six months ended June 30, 2025 (RMB thousand) | For the six months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Government Grants | 16,543 | 6,837 | | Sales of Scraps and Provision of Manufacturing Services | 4,640 | 4,237 | | VAT Super Deduction | 12,841 | 25,322 | | Net Exchange Gains | 129,747 | – | | Dividend Income | 2,730 | 9,412 | | Net Unrealized Fair Value Change of Other Financial Assets | 1,063 | – | | Net Gain on Disposal of Property, Plant and Equipment | 139 | 462 | | Others | 2,468 | 2,036 | | **Total** | **170,171** | **48,306** | - The Group’s subsidiaries in China received unconditional government grants totaling **RMB 12,562,000** (first half of 2024: RMB 2,857,000)[38](index=38&type=chunk) - The Group also recognized amortization of government grants related to assets of **RMB 3,981,000** (first half of 2024: RMB 3,980,000)[38](index=38&type=chunk) [6. Other Expenses](index=12&type=section&id=6.%20Other%20Expenses) For the six months ended June 30, 2025, the Group's other expenses increased to RMB 27,917 thousand, primarily due to increased loss provisions for trade and other receivables and a net change in fair value of other financial assets from gain to loss 其他开支明细（人民币千元） | Item | For the six months ended June 30, 2025 (RMB thousand) | For the six months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Loss Allowance for Trade and Other Receivables | 21,798 | 9,122 | | Charitable Donations | 2,909 | 2,400 | | Net Unrealized Fair Value Change of Other Financial Assets | 3,141 | – | | Net Realized and Unrealized Losses on Trading Securities | 1,836 | 62 | | Loss on Disposal of Interests in Subsidiaries | – | 185 | | Others | 1,374 | 1,036 | | **Total** | **27,917** | **15,946** | [7. Profit Before Income Tax](index=13&type=section&id=7.%20Profit%20Before%20Income%20Tax) For the six months ended June 30, 2025, the Group's profit before income tax was RMB 237,832 thousand, an increase from the prior year, primarily due to a reduction in net finance costs, despite a decrease in interest income 除所得税前溢利构成（人民币千元） | Item | For the six months ended June 30, 2025 (RMB thousand) | For the six months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Net Finance Costs** | | | | Interest Income | (15,082) | (13,418) | | Interest on Bank Loans | 62,755 | 61,855 | | Interest from Other Financial Liabilities | 28,300 | 16,100 | | **Net Finance Costs** | **75,973** | **64,537** | | **Other Items** | | | | Cost of Inventories | 1,963,178 | 1,898,620 | | Amortization of Intangible Assets | 3,960 | 4,393 | | Depreciation of Property, Plant and Equipment | 193,198 | 195,610 | | Amortization of Prepaid Lease Payments (Right-of-use Assets) | 2,927 | 2,839 | | Reversal of/(Provision for) Inventory Write-downs | 6,897 | (11,331) | [7(a) Net Finance Costs](index=13&type=section&id=7(a)%20Net%20Finance%20Costs) For the six months ended June 30, 2025, the Group's net finance costs decreased to RMB 64,537 thousand from RMB 75,973 thousand in the prior year, primarily due to increased interest income and a slight reduction in bank loan interest 融资成本净额明细（人民币千元） | Item | For the six months ended June 30, 2025 (RMB thousand) | For the six months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest Income | (15,082) | (13,418) | | Interest on Bank Loans | 62,755 | 61,855 | | Interest from Other Financial Liabilities | 28,300 | 16,100 | | **Net Finance Costs** | **75,973** | **64,537** | [7(b) Other Items](index=13&type=section&id=7(b)%20Other%20Items) For the six months ended June 30, 2025, cost of inventories was RMB 1,898,620 thousand, a decrease from the prior year; inventory write-downs were reversed by RMB 11,331 thousand in the current period, compared to a provision of RMB 6,897 thousand in the prior year 其他项目明细（人民币千元） | Item | For the six months ended June 30, 2025 (RMB thousand) | For the six months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of Inventories | 1,898,620 | 1,963,178 | | Amortization of Intangible Assets | 4,393 | 3,960 | | Depreciation of Property, Plant and Equipment | 195,610 | 193,198 | | Amortization of Prepaid Lease Payments (Right-of-use Assets) | 2,839 | 2,927 | | Reversal of/(Provision for) Inventory Write-downs | (11,331) | 6,897 | [8. Income Tax](index=14&type=section&id=8.%20Income%20Tax) For the six months ended June 30, 2025, the Group's income tax expense increased to RMB 19,213 thousand, primarily due to increased China income tax provision and deferred tax moving from a reversal to a charge; several Chinese subsidiaries enjoy a 15% preferential tax rate for high-tech enterprises, while the Thai subsidiary TGPT benefits from a 0% preferential income tax rate 所得税开支明细（人民币千元） | Item | For the six months ended June 30, 2025 (RMB thousand) | For the six months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Current Tax** | | | | China Income Tax Provision | 17,958 | 30,629 | | Hong Kong Profits Tax Provision | 516 | 3,234 | | Thailand Corporate Income Tax Provision | 533 | 704 | | **Deferred Tax** | | | | Origination and Reversal of Temporary Differences | 206 | (22,624) | | **Total** | **19,213** | **11,943** | - Tiangong Tools, Tiangong Aihe, Precision Tools, Tiangong Co., Ltd., and Weijian Tools are subject to a preferential income tax rate of **15%** (first half of 2024: 15%)[44](index=44&type=chunk) - Hard Alloy Technology is recognized as a high-tech enterprise and enjoys a preferential income tax rate of **15%** (first half of 2024: 25%) for the six months ended June 30, 2025[44](index=44&type=chunk) - Tiangong Precision Tools (Thailand) Company Limited (TGPT), a subsidiary of the Company located in Thailand, enjoys a **0%** preferential income tax rate for six years starting from May 2021[47](index=47&type=chunk) [9. Earnings Per Share](index=15&type=section&id=9.%20Earnings%20Per%20Share) For the six months ended June 30, 2025, the Company's basic earnings per share was RMB 0.075, an 11.9% increase from the prior year; diluted earnings per share was the same as basic earnings per share as there were no potential dilutive ordinary shares during the period - Basic earnings per share is calculated based on the profit attributable to equity holders of the Company of **RMB 203,583,000** (first half of 2024: RMB 184,371,000) and the weighted average number of ordinary shares in issue during the interim period of **2,725,000,000** shares (first half of 2024: 2,760,750,961 shares)[48](index=48&type=chunk) - As there were no potential dilutive ordinary shares for the six months ended June 30, 2025 and 2024, the diluted earnings per share for these periods were the same as the basic earnings per share[49](index=49&type=chunk) [10. Trade and Other Receivables](index=15&type=section&id=10.%20Trade%20and%20Other%20Receivables) As of June 30, 2025, the Group's net trade and other receivables increased to RMB 3,900,869 thousand, with net trade and bills receivables at RMB 3,181,899 thousand; loss allowance accounted for 5.0% of trade and bills receivables 贸易及其他应收款项明细（人民币千元） | Item | As of June 30, 2025 (RMB thousand) | As of December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables | 2,524,007 | 2,226,434 | | Bills Receivable | 824,594 | 732,940 | | Less: Loss Allowance | (166,702) | (143,288) | | **Net Trade and Bills Receivables** | **3,181,899** | **2,816,086** | | Prepayments | 164,534 | 159,747 | | Non-trade Receivables | 535,978 | 477,599 | | Less: Loss Allowance | (8,944) | (9,498) | | Current Tax | 27,402 | 99,114 | | **Net Prepayments and Non-trade Receivables** | **718,970** | **726,962** | | **Total** | **3,900,869** | **3,543,048** | - As of June 30, 2025, certain intercompany trade receivables of **RMB 149,391,000** were pledged to a bank as collateral for the Group's bank loans[50](index=50&type=chunk) - Trade receivables and bills receivable are due within **90 to 180 days** from the invoice date[51](index=51&type=chunk) [11. Trade and Other Payables](index=16&type=section&id=11.%20Trade%20and%20Other%20Payables) As of June 30, 2025, the Group's total trade and other payables amounted to RMB 1,533,160 thousand, an increase from the end of 2024, primarily due to an increase in dividends payable 贸易及其他应付款项明细（人民币千元） | Item | As of June 30, 2025 (RMB thousand) | As of December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade and Bills Payables | 1,246,103 | 1,189,125 | | Contract Liabilities | 12,776 | 14,445 | | Dividends Payable | 71,668 | – | | Other Payables and Accrued Expenses | 202,613 | 249,185 | | **Total** | **1,533,160** | **1,452,755** | - The aging analysis of trade and bills payables shows that the vast majority (**RMB 1,217,675 thousand**) are due within one year[52](index=52&type=chunk) [12. Other Financial Liabilities](index=17&type=section&id=12.%20Other%20Financial%20Liabilities) As of June 30, 2025, the Group's other financial liabilities decreased to RMB 885,169 thousand from RMB 983,676 thousand at the end of 2024, primarily due to three investors exercising their redemption rights to redeem their capital contributions and related interest in Tiangong Tools during the period 其他金融负债明细（人民币千元） | Item | As of June 30, 2025 (RMB thousand) | As of December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Contingent Redeemable Capital Contribution in a Subsidiary | 885,169 | 983,676 | - During the period ended June 30, 2025, three investors exercised their redemption rights to redeem their capital contributions and related interest totaling **RMB 114,607,000**[54](index=54&type=chunk) - As of June 30, 2025, the Company held **90.06%** (2024: 89.00%) equity interest in Tiangong Tools[54](index=54&type=chunk) [13. Share Capital, Reserves and Dividends](index=18&type=section&id=13.%20Share%20Capital,%20Reserves%20and%20Dividends) The Company's Board of Directors has declared an interim dividend of RMB 0.0262 per share for the six months ended June 30, 2025, an increase from the prior year; additionally, dividends approved but unpaid for the previous fiscal year amounted to RMB 71,668 thousand in the current period 股息信息（人民币千元） | Item | For the six months ended June 30, 2025 (RMB thousand) | For the six months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Dividends declared after the end of the reporting period (RMB 0.0262/0.0203 per share) | 71,395 | 55,311 | | Dividends approved but unpaid for the previous financial year during the interim period (RMB 0.0263/0.0400 per share) | 71,668 | 109,073 | - The Company will suspend the registration of share transfers to qualify for the interim dividend[140](index=140&type=chunk) [Management Discussion and Analysis](index=19&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth review of the Group's operational performance, financial results, industry trends, and strategic developments for the reporting period [Business Review](index=19&type=section&id=Business%20Review) For the first half of 2025, the Group's overall revenue decreased by 7.1% to RMB 2,342,495 thousand, primarily due to reduced exports from US tariff policy uncertainties and decreased demand for titanium wire in the consumer electronics industry; domestic demand for die steel and high-speed steel recovered, but export businesses declined due to external factors, and cutting tools and titanium alloys segments also experienced significant revenue decreases 截至2025年上半年各分部营业额（人民币千元） | Segment | H1 2025 Revenue (RMB thousand) | % of Total | H1 2024 Revenue (RMB thousand) | % of Total | Change (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Die Steel | 1,154,590 | 49.3% | 1,181,417 | 46.9% | (26,827) | (2.3%) | | High-Speed Steel | 394,434 | 16.8% | 436,145 | 17.3% | (41,711) | (9.6%) | | Cutting Tools | 397,365 | 17.0% | 463,607 | 18.4% | (66,242) | (14.3%) | | Titanium Alloys | 348,786 | 14.9% | 384,832 | 15.2% | (36,046) | (9.4%) | | Others | 47,320 | 2.0% | 55,647 | 2.2% | (8,327) | (15.0%) | | **Total** | **2,342,495** | **100.0%** | **2,521,648** | **100.0%** | **(179,153)** | **(7.1%)** | - The overall revenue decline was mainly due to reduced exports across all segments caused by US tariff policy uncertainties and a temporary decrease in demand for titanium wire in the consumer electronics industry[80](index=80&type=chunk) [Die Steel](index=19&type=section&id=Die%20Steel) Die steel segment revenue decreased by 2.3% year-on-year to RMB 1,154,590 thousand; domestic revenue grew by 4.7% due to rising raw material costs and industry recovery, but export business declined by 8.2% due to a sluggish European market and North American tariff uncertainties 模具钢营业额（人民币千元） | Sales Type | H1 2025 (RMB thousand) | % of Total | H1 2024 (RMB thousand) | % of Total | Change (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Domestic Sales | 565,627 | 49.0% | 540,024 | 45.7% | 25,603 | 4.7% | | Export Sales | 588,963 | 51.0% | 641,393 | 54.3% | (52,430) | (8.2%) | | **Total** | **1,154,590** | **100.0%** | **1,181,417** | **100.0%** | **(26,827)** | **(2.3%)** | - Domestic revenue increased by **4.7%** to **RMB 565,627,000**, primarily due to rising average procurement prices of key raw materials for die steel and a slight recovery in the domestic industry outlook, allowing for smooth transfer of procurement costs and an increase in average selling prices[63](index=63&type=chunk) - Export revenue decreased by **8.2%** to **RMB 588,963,000**, mainly affected by the continued sluggish European market and uncertainties regarding North American tariffs[64](index=64&type=chunk) [High-Speed Steel](index=20&type=section&id=High-Speed%20Steel) High-speed steel segment revenue decreased by 9.6% year-on-year to RMB 394,434 thousand; domestic revenue grew by 14.1% due to rising average selling prices and recovering domestic demand, but export business declined by 35.4% in sales volume due to US tariff policies 高速钢营业额（人民币千元） | Sales Type | H1 2025 (RMB thousand) | % of Total | H1 2024 (RMB thousand) | % of Total | Change (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Domestic Sales | 259,800 | 65.9% | 227,657 | 52.2% | 32,143 | 14.1% | | Export Sales | 134,634 | 34.1% | 208,488 | 47.8% | (73,854) | (35.4%) | | **Total** | **394,434** | **100.0%** | **436,145** | **100.0%** | **(41,711)** | **(9.6%)** | - Domestic revenue increased by **14.1%** to **RMB 259,800,000**, primarily due to rising average selling prices of high-speed steel, particularly a significant increase in tungsten procurement prices, coupled with a slight recovery in domestic demand[66](index=66&type=chunk) - Export revenue decreased by **35.4%** to **RMB 134,634,000**, mainly due to a decline in sales volume affected by US tariff policies[67](index=67&type=chunk) [Cutting Tools](index=21&type=section&id=Cutting%20Tools) Cutting tools segment revenue decreased by 14.3% year-on-year to RMB 397,365 thousand; domestic revenue slightly declined by 5.4% due to sales network optimization and dealer system streamlining, but is expected to improve in the second half, while export business decreased by 19.4% due to escalating US tariffs 切削工具营业额（人民币千元） | Sales Type | H1 2025 (RMB thousand) | % of Total | H1 2024 (RMB thousand) | % of Total | Change (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Domestic Sales | 159,524 | 40.1% | 168,631 | 36.4% | (9,107) | (5.4%) | | Export Sales | 237,841 | 59.9% | 294,976 | 63.6% | (57,135) | (19.4%) | | **Total** | **397,365** | **100.0%** | **463,607** | **100.0%** | **(66,242)** | **(14.3%)** | - Domestic revenue for the cutting tools segment slightly decreased by **5.4%** to **RMB 159,524,000**, primarily due to the Group's proactive systematic streamlining and optimization of its sales network and dealer system, focusing on long-term development partners[71](index=71&type=chunk) - Export revenue decreased by **19.4%** to **RMB 237,841,000**, mainly due to reduced orders as customers adopted a wait-and-see attitude amid escalating US tariffs[72](index=72&type=chunk) [Titanium Alloys](index=22&type=section&id=Titanium%20Alloys) Titanium alloys segment revenue decreased by 9.4% year-on-year to RMB 348,786 thousand; domestic revenue declined by 8.5%, primarily due to reduced demand for titanium alloy wire in the consumer electronics industry, leading the Group to shift towards selling lower value-added titanium plates and tubes, while export business saw a significant decrease of 71.2% 钛合金营业额（人民币千元） | Sales Type | H1 2025 (RMB thousand) | % of Total | H1 2024 (RMB thousand) | % of Total | Change (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Domestic Sales | 347,213 | 99.5% | 379,375 | 98.6% | (32,162) | (8.5%) | | Export Sales | 1,573 | 0.5% | 5,457 | 1.4% | (3,884) | (71.2%) | | **Total** | **348,786** | **100.0%** | **384,832** | **100.0%** | **(36,046)** | **(9.4%)** | - Domestic revenue decreased by **8.5%** to **RMB 347,213,000**, primarily due to reduced sales in the consumer electronics industry, with end customers decreasing the use of titanium alloy models for next-generation phone frames, leading to fewer titanium alloy wire orders, prompting the Group to shift towards selling titanium plate and tube products[75](index=75&type=chunk) - In terms of exports, the Group continues to focus on developing markets for 3D printing and additive manufacturing applications, maintaining an optimistic outlook on demand for these applications[75](index=75&type=chunk) [Others](index=23&type=section&id=Others) Other segment revenue decreased by 15.0% year-on-year to RMB 47,320 thousand, primarily due to a decline in exports of power tools and power tool sets to the US caused by tariff uncertainties, leading to a wait-and-see attitude from downstream customers and reduced order volumes 其他分部营业额（人民币千元） | Sales Type | H1 2025 (RMB thousand) | % of Total | H1 2024 (RMB thousand) | % of Total | Change (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Export Sales | 47,320 | 100.0% | 55,647 | 100.0% | (8,327) | (15.0%) | - The "Others" segment involves assembly and export sales of power tool products derived from existing cutting tool customers, including electric drill sets, electric screwdriver sets, electric toothbrush sets, hardware sets, small fans, and safety lights[77](index=77&type=chunk) - Revenue decreased by **15.0%** to **RMB 47,320,000**, primarily due to a decline in exports of power tools and power tool sets to the US caused by US tariff uncertainties, leading to a wait-and-see attitude from downstream customers and reduced order volumes[79](index=79&type=chunk) [Financial Review](index=23&type=section&id=Financial%20Review) For the first half of 2025, profit attributable to equity holders of the Company increased by 10.4% year-on-year to RMB 203,583 thousand, despite an overall revenue decrease of 7.1%; this was primarily driven by significant growth in other income (especially exchange gains) and reduced net finance costs, partially offsetting the impact of lower gross profit margin and increased income tax expense, while cost of sales decreased with lower sales volume, administrative expenses rose due to increased consulting fees, and R&D expenses decreased due to changes in project stages - Profit attributable to equity holders of the Company increased by **10.4%** from **RMB 184,371,000** in the first half of 2024 to **RMB 203,583,000** in the first half of 2025[80](index=80&type=chunk) - The Group's total revenue for the first half of 2025 reached **RMB 2,342,495,000**, a **7.1%** decrease compared to **RMB 2,521,648,000** in the first half of 2024[80](index=80&type=chunk) - The Group's other income increased from **RMB 48,306,000** in the first half of 2024 to **RMB 170,171,000** in the first half of 2025, primarily due to a significant appreciation of the Euro against the RMB, resulting in exchange gains on Euro-denominated trade receivables[88](index=88&type=chunk) - The Group's net finance costs decreased from **RMB 75,973,000** in the first half of 2024 to **RMB 64,537,000** in the first half of 2025, primarily due to the redemption of certain contingent redeemable equity held by third-party investors in Tiangong Tools[92](index=92&type=chunk) [Revenue](index=23&type=section&id=Revenue) The Group's total revenue for the first half of 2025 reached RMB 2,342,495 thousand, a 7.1% decrease compared to the first half of 2024, primarily due to reduced exports from US tariff policy uncertainties and decreased demand for titanium wire in the consumer electronics industry - The Group's total revenue for the first half of 2025 reached **RMB 2,342,495,000**, a **7.1%** decrease compared to **RMB 2,521,648,000** in the first half of 2024[80](index=80&type=chunk) - The revenue decline was mainly due to reduced exports across all segments caused by US tariff policy uncertainties and a temporary decrease in demand for titanium wire in the consumer electronics industry[80](index=80&type=chunk) [Cost of Sales](index=24&type=section&id=Cost%20of%20Sales) The Group's cost of sales decreased by 3.3% from RMB 1,963,178 thousand in the first half of 2024 to RMB 1,898,620 thousand in the first half of 2025, primarily due to lower sales volume during the period - The Group's cost of sales decreased from **RMB 1,963,178,000** in the first half of 2024 to **RMB 1,898,620,000** in the first half of 2025, a decrease of **3.3%**[81](index=81&type=chunk) - The decrease in cost of sales was mainly due to lower sales volume during the period[81](index=81&type=chunk) [Gross Profit Margin](index=24&type=section&id=Gross%20Profit%20Margin) In the first half of 2025, the Group's overall gross profit margin was 18.9%, a decrease of 3.2 percentage points from 22.1% in the prior year; gross profit margins for die steel and high-speed steel increased, while those for cutting tools, titanium alloys, and other segments decreased, with titanium alloys experiencing the largest decline 各分部毛利率对比 | Segment | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Die Steel | 13.8% | 13.3% | | High-Speed Steel | 15.6% | 14.1% | | Cutting Tools | 28.5% | 33.1% | | Titanium Alloys | 24.2% | 39.0% | | Others | 7.7% | 19.2% | - The overall gross profit margin decreased by **3.2 percentage points** to **18.9%** (first half of 2024: 22.1%)[82](index=82&type=chunk) [Die Steel Gross Profit Margin](index=24&type=section&id=Die%20Steel%20Gross%20Profit%20Margin) Die steel gross profit margin increased from 13.3% in the first half of 2024 to 13.8% in the first half of 2025, primarily due to a recovery in domestic industry sentiment and successful pass-through of procurement costs to customers - The gross profit margin for die steel increased from **13.3%** in the first half of 2024 to **13.8%** in the first half of 2025[83](index=83&type=chunk) - The main reason is the recovery in domestic industry sentiment, which allowed for the smooth transfer of procurement costs to customers, boosting gross profit margin growth[83](index=83&type=chunk) [High-Speed Steel Gross Profit Margin](index=24&type=section&id=High-Speed%20Steel%20Gross%20Profit%20Margin) The overall gross profit margin for high-speed steel increased from 14.1% in the first half of 2024 to 15.6% in the first half of 2025, similar to die steel, primarily benefiting from cost pass-through - The overall gross profit margin for high-speed steel increased from **14.1%** in the first half of 2024 to **15.6%** in the first half of 2025[84](index=84&type=chunk) [Cutting Tools Gross Profit Margin](index=25&type=section&id=Cutting%20Tools%20Gross%20Profit%20Margin) Cutting tools gross profit margin decreased from 33.1% in the first half of 2024 to 28.5% in the first half of 2025, primarily because rising raw material prices could not be fully passed on to downstream customers, compressing gross profit - The gross profit margin for cutting tools decreased from **33.1%** in the first half of 2024 to **28.5%** in the first half of 2025[85](index=85&type=chunk) - The main reason is that the rising raw material prices for cutting tools could not be fully passed on to downstream customers, which to some extent compressed the gross profit[85](index=85&type=chunk) [Titanium Alloys Gross Profit Margin](index=25&type=section&id=Titanium%20Alloys%20Gross%20Profit%20Margin) Titanium alloys gross profit margin significantly decreased from 39.0% in the first half of 2024 to 24.2% in the first half of 2025, primarily due to reduced demand in the consumer electronics industry, lower sales of high-margin titanium alloy wire, and increased sales of lower-margin tubes and plates, leading to a change in sales mix - The gross profit margin for titanium alloys decreased from **39.0%** in the first half of 2024 to **24.2%** in the first half of 2025[86](index=86&type=chunk) - The main reason is the decreased demand in the consumer electronics industry, leading to reduced sales of high-margin titanium alloy wire for consumer electronics and increased sales of lower-margin tubes and plates, resulting in a change in the sales mix[86](index=86&type=chunk) [Other Segments Gross Profit Margin](index=25&type=section&id=Other%20Segments%20Gross%20Profit%20Margin) Other segments' gross profit margin decreased from 19.2% in the first half of 2024 to 7.7% in the first half of 2025, primarily due to weak product demand resulting in insufficient allocation of fixed costs - The gross profit margin for other segments decreased from **19.2%** in the first half of 2024 to **7.7%** in the first half of 2025[87](index=87&type=chunk) - The main reason is the weak product demand in other segments, leading to insufficient allocation of fixed costs[87](index=87&type=chunk) [Other Income](index=25&type=section&id=Other%20Income) The Group's other income significantly increased from RMB 48,306 thousand in the first half of 2024 to RMB 170,171 thousand in the first half of 2025, primarily due to a substantial appreciation of the Euro against the RMB, resulting in exchange gains on Euro-denominated trade receivables - The Group's other income increased from **RMB 48,306,000** in the first half of 2024 to **RMB 170,171,000** in the first half of 2025[88](index=88&type=chunk) - This was mainly due to a significant appreciation of the Euro against the RMB, resulting in exchange gains on Euro-denominated trade receivables throughout the period[88](index=88&type=chunk) [Distribution Expenses](index=25&type=section&id=Distribution%20Expenses) The Group's distribution expenses were RMB 55,783 thousand, a 12.4% decrease from the first half of 2024, primarily due to reduced export sales influenced by US tariff uncertainties and lower unit transportation costs resulting from decreased global trade volumes - The Group's distribution expenses were **RMB 55,783,000** (first half of 2024: RMB 63,686,000), a decrease of **12.4%**[89](index=89&type=chunk) - This was mainly affected by the uncertainty of US tariffs, leading to a decrease in export sales; additionally, unit transportation costs also decreased due to reduced global trade volume with the US[89](index=89&type=chunk) [Administrative Expenses](index=25&type=section&id=Administrative%20Expenses) In the first half of 2025, the Group's administrative expenses were RMB 91,415 thousand, a 9.7% year-on-year increase, primarily due to consulting fees paid for green factory declarations and trademark and intellectual property protection services - In the first half of 2025, the Group's administrative expenses were **RMB 91,415,000** (first half of 2024: RMB 83,348,000), an increase of **9.7%**[90](index=90&type=chunk) - The increase was mainly due to consulting fees paid for green factory declarations and trademark and intellectual property protection services[90](index=90&type=chunk) - In the first half of 2025, administrative expenses as a percentage of revenue were **3.9%** (first half of 2024: 3.3%)[90](index=90&type=chunk) [Research and Development Expenses](index=26&type=section&id=Research%20and%20Development%20Expenses) Research and development expenses decreased from RMB 146,994 thousand in the first half of 2024 to RMB 137,045 thousand in the first half of 2025, primarily because some R&D projects entered later stages, requiring less material input - Research and development expenses decreased from **RMB 146,994,000** in the first half of 2024 to **RMB 137,045,000** in the first half of 2025[91](index=91&type=chunk) - The main component is the materials consumed by R&D projects; some projects entered later stages during this period, requiring less material input[91](index=91&type=chunk) [Net Finance Costs](index=26&type=section&id=Net%20Finance%20Costs) The Group's net finance costs decreased from RMB 75,973 thousand in the first half of 2024 to RMB 64,537 thousand in the first half of 2025, primarily due to the redemption of certain contingent redeemable equity held by third-party investors in Tiangong Tools, resulting in savings in related finance costs - The Group's net finance costs decreased from **RMB 75,973,000** in the first half of 2024 to **RMB 64,537,000** in the first half of 2025[92](index=92&type=chunk) - This was mainly due to the Group having redeemed certain contingent redeemable equity held by third-party investors in Tiangong Tools, and the related finance costs were saved and reduced during the period[92](index=92&type=chunk) [Income Tax Expense](index=26&type=section&id=Income%20Tax%20Expense) The Group's income tax expense increased from RMB 11,943 thousand in the first half of 2024 to RMB 19,213 thousand in the first half of 2025, primarily due to unrecognized deferred tax assets for tax losses of certain start-up subsidiaries and an increase in the Group's profit before tax - The Group's income tax expense increased from **RMB 11,943,000** in the first half of 2024 to **RMB 19,213,000** in the first half of 2025[93](index=93&type=chunk) - This increase was mainly due to (i) unrecognized deferred tax assets for tax losses of certain subsidiaries that are in their start-up phase and do not have sufficient taxable income to offset losses; and (ii) an increase in the Group's profit before tax[93](index=93&type=chunk) [Profit for the Period](index=26&type=section&id=Profit%20for%20the%20Period) Based on the aforementioned factors, the Group's profit for the period increased by 4% from RMB 210,239 thousand in the first half of 2024 to RMB 218,619 thousand in the first half of 2025; the Group's net profit margin for the first half of 2025 was 9.3%, an increase of 1.0 percentage point from the prior year - The Group's profit increased by **4%** from **RMB 210,239,000** in the first half of 2024 to **RMB 218,619,000** in the first half of 2025[94](index=94&type=chunk) - The Group's net profit margin for the first half of 2025 was **9.3%** (first half of 2024: 8.3%)[94](index=94&type=chunk) [Profit Attributable to Equity Holders of the Company](index=26&type=section&id=Profit%20Attributable%20to%20Equity%20Holders%20of%20the%20Company) In the first half of 2025, profit attributable to equity holders of the Company was RMB 203,583 thousand, a 10.4% increase from the prior year - In the first half of 2025, profit attributable to equity holders of the Company was **RMB 203,583,000** (first half of 2024: RMB 184,371,000), an increase of **10.4%**[95](index=95&type=chunk) [Other Financial Assets](index=27&type=section&id=Other%20Financial%20Assets) The Group's other financial assets include equity investments in several banks, environmental technology companies, and private equity funds; all investments are accounted for at fair value, and their changes reflect a net increase in fair market value - The Group's other financial assets include equity investments in Jiangsu Bank Co., Ltd., Yunnan Filter Environmental Technology Co., Ltd., Nanjing Xiaomuma Technology Co., Ltd., Jiangsu Jinmao Gangbao E-commerce Co., Ltd., Ningbo Meishan Bonded Port Area Qiana Equity Investment Partnership (Limited Partnership), CICC Jia Tai III (Shenzhen) Private Equity Investment Fund Partnership (Limited Partnership), Jinan Caijin Fuxing Weishi Equity Investment Fund Partnership (Limited Partnership), Danyang Boyun Hengda Tiangong Industrial Investment Center (Limited Partnership), and Suzhou Yiming New Material Venture Capital Partnership (Limited Partnership)[96](index=96&type=chunk) - All these investments are accounted for at fair value; the changes represent the net increase in the fair market value of these financial assets[96](index=96&type=chunk) [Trade and Bills Receivables](index=27&type=section&id=Trade%20and%20Bills%20Receivables) Net trade and bills receivables increased from RMB 2,816,086 thousand as of December 31, 2024, to RMB 3,181,899 thousand as of June 30, 2025; loss allowance accounted for 5.0% of trade and bills receivables - Net trade and bills receivables increased from **RMB 2,816,086,000** as of December 31, 2024, to **RMB 3,181,899,000** as of June 30, 2025[97](index=97&type=chunk) - The loss allowance of **RMB 166,702,000** (2024: RMB 143,288,000) accounted for **5.0%** (2024: 4.8%) of trade and bills receivables[97](index=97&type=chunk) [Industry Review](index=27&type=section&id=Industry%20Review) Global geopolitical instability and US tariff policies pose challenges to global trade relations, yet China's economy demonstrated resilience with a 5.3% GDP growth in the first half of 2025, driven primarily by domestic consumption; China continues to increase R&D investment and high-tech manufacturing, particularly in automotive, railway, aerospace, electrical machinery, and equipment manufacturing, with the development of humanoid robots and high-end titanium alloy markets offering broad opportunities for the Group - Global geopolitical instability persists, and increased tariffs by the US on China and other countries globally have comprehensively impacted global trade relations, posing significant challenges to the economic resilience of various nations[98](index=98&type=chunk) - China's GDP growth rate for the first half of 2025 was **5.3%**, an increase of **0.3 percentage points** from the same period last year, with contributions from final consumption expenditure and gross capital formation both rising, reflecting that domestic consumption is the main driver of GDP growth[99](index=99&type=chunk) - China's overall R&D investment as a percentage of GDP rose to approximately **2.7%**, the number of valid invention patent applications increased by **13.2%** to nearly **5.01 million**, and the added value of high-tech manufacturing above designated size grew by **9.7%** year-on-year[100](index=100&type=chunk) - The rapid development of DeepSeek AI large models and China's robot manufacturing and application provides broad market opportunities for the Group as a high-end material manufacturer[101](index=101&type=chunk) [Macroeconomic and Trade Environment](index=27&type=section&id=Macroeconomic%20and%20Trade%20Environment) Global geopolitical instability and US tariff policies challenge global trade relations, leading to RMB exchange rate fluctuations and complex challenges for China's export trade; however, the Chinese economy demonstrated strong resilience with a 5.3% GDP growth in the first half of 2025, driven primarily by domestic consumption, and sustained growth in R&D investment and high-tech manufacturing - Global geopolitical instability persists, and increased tariffs by the US on China and other countries globally have comprehensively impacted global trade relations, posing significant challenges to the economic resilience of various nations[98](index=98&type=chunk) - China's GDP growth rate for the first half of 2025 was **5.3%**, an increase of **0.3 percentage points** from the same period last year, with domestic consumption being the main driver of GDP growth[99](index=99&type=chunk) - China's overall R&D investment as a percentage of GDP rose to approximately **2.7%**, the number of valid invention patent applications increased by **13.2%** to nearly **5.01 million**, and the added value of high-tech manufacturing above designated size grew by **9.7%** year-on-year[100](index=100&type=chunk) [Tool and Die Steel: Humanoid Robot Development Drives Demand for High-Value High-Speed Steel](index=29&type=section&id=Tool%20and%20Die%20Steel:%20Humanoid%20Robot%20Development%20Drives%20Demand%20for%20High-Value%20High-Speed%20Steel) China's humanoid robot market is projected to reach RMB 10 trillion, with its demand for lightweight and high-strength steel driving the development of high-value steel product matrices; the Group has independently developed high-nitrogen alloy material TPMDC02A for humanoid robot planetary roller screw production, successfully passing technical verification, and high-end products like powder metallurgy die steel are in strong demand across new energy vehicles and consumer electronics industries - China's humanoid robot market is expected to reach **RMB 10 trillion** after 2045, with its core construction requiring specialized steel for lightweight and strength, driving the development of high-value steel product matrices[102](index=102&type=chunk)[103](index=103&type=chunk) - The Group has independently developed high-nitrogen alloy material **TPMDC02A** using its unique powder metallurgy smelting technology, applied in the production of humanoid robot planetary roller screws, successfully breaking through the localization process of high-nitrogen, high-strength, corrosion-resistant alloys[103](index=103&type=chunk)[117](index=117&type=chunk) - In the first half of 2025, driven by strong demand in key industries such as new energy vehicles and consumer electronics, China's high-end tool steel market expanded, and the market penetration of high-end products like powder metallurgy die steel increased[104](index=104&type=chunk) [Titanium Alloys: High-End Products Benefit from Global Industry Transition to High-End](index=30&type=section&id=Titanium%20Alloys:%20High-End%20Products%20Benefit%20from%20Global%20Industry%20Transition%20to%20High-End) The high-end titanium wire market is projected to reach approximately US$1.2 billion by 2025, benefiting from increased demand in aerospace, medical, automotive, and 3C sectors; the Group has completed its Phase II EB furnace project, successfully casting high-quality titanium ingots, enhancing titanium alloy scrap recycling, strengthening its global competitiveness in high-end titanium alloys, and ensuring stable supply of titanium alloy materials for consumer electronics - The high-end titanium wire market is expected to benefit from the transition of multiple industries from low-end to high-end and increased downstream demand, with the global high-end titanium wire market projected to reach approximately **US$1.2 billion** by 2025[105](index=105&type=chunk) - Key driving factors include expanding applications in aerospace, medical, automotive, and computer, communication, and consumer electronics (3C) sectors, as well as the high-end development of titanium materials and industrial technology upgrades[106](index=106&type=chunk) - The Group completed its Phase II EB furnace project in March 2025, aimed at increasing the recycling rate of titanium alloy scrap, successfully casting high-quality titanium ingots, further consolidating its global competitiveness in high-end titanium and titanium alloys[107](index=107&type=chunk) [Significant Business Developments](index=31&type=section&id=Significant%20Business%20Developments) The Group's subsidiary, Tiangong Co., Ltd., successfully listed on the Beijing Stock Exchange on May 13, 2025, with its closing price surging 411.93% on the first day, exceeding RMB 13 billion in market capitalization and setting a new record for the largest first-day gain on the Beijing Stock Exchange; this listing attracted 12 strategic investors, with proceeds earmarked for expanding high-end titanium alloy production lines, and Tiangong Co., Ltd. also successfully delivered its first order of aerospace-grade titanium alloy wire for fasteners and entered into a strategic cooperation with Fujian Hengerda New Material Co., Ltd. in metal material R&D and preparation processes to jointly enhance market competitiveness - Tiangong Co., Ltd., a subsidiary of the Company, successfully listed its shares on the Beijing Stock Exchange on **May 13, 2025**, becoming the first red-chip Hong Kong-listed company to spin off its subsidiary for an A-share listing on the Beijing Stock Exchange[108](index=108&type=chunk) - Tiangong Co., Ltd.'s initial public offering price was **RMB 3.94** per share, with its closing price surging **411.93%** to **RMB 20.17** on the first day, breaking **RMB 13 billion** in market capitalization and setting a new record for the largest first-day gain for a new stock on the Beijing Stock Exchange in 2025[109](index=109&type=chunk) - The proceeds from this offering will be used to expand high-end titanium alloy bar and wire production lines, supporting Tiangong Co., Ltd.'s further expansion into high-end application fields such as aerospace, 3D printing, and medical health[109](index=109&type=chunk) - Tiangong Co., Ltd. officially delivered its first order of aerospace-grade titanium alloy wire for fasteners, marking a new milestone in the company's R&D and market capabilities for high-end titanium alloy materials and achieving a significant breakthrough in aerospace materials[110](index=110&type=chunk) - The Group and Fujian Hengerda New Material Co., Ltd. plan to jointly establish a special investment working group to conduct collaborative investments focusing on the upstream and downstream of the industrial chain, particularly in advanced manufacturing sectors such as new energy vehicles, robots, semiconductors, and electronic information[111](index=111&type=chunk) [Significant Innovation and Green Technology Achievements](index=32&type=section&id=Significant%20Innovation%20and%20Green%20Technology%20Achievements) The Group achieved significant progress in green production, completing its Phase II EB furnace project to enhance titanium alloy scrap recycling, with subsidiaries recognized as 'Green Factories' and 'Carbon Management System Demonstration Units'; in product innovation, the Group leads national key R&D projects, independently developed high-nitrogen alloy material TPMDC02A for humanoid robots, and successfully obtained NADCA certification, becoming the first Chinese enterprise to achieve this, demonstrating world-class capabilities in large-scale integrated die-casting mold materials; the Group continuously enhances brand and industry influence through active participation in industry exhibitions and receiving 'Best Supplier Awards' - The Group completed its Phase II EB furnace project, aimed at increasing the recycling rate of titanium alloy scrap, successfully conducting hot trials to cast high-quality titanium ingots, further consolidating the Group's technological advantages in high-end titanium and titanium alloys[112](index=112&type=chunk) - The Group's innovation in scrap processing and recycling technology effectively improved resource utilization and reduced production costs, while meeting stringent environmental and ESG standards required by domestic and international customers[112](index=112&type=chunk) - Tiangong Co., Ltd. and Tiangong Tools, subsidiaries of the Company, were successfully included in Jiangsu Province's 2024 "Green Factory" list, and Tiangong Tools obtained the "Carbon Management System Demonstration Unit" title awarded by Shanghai Environment and Energy Exchange Co., Ltd[113](index=113&type=chunk) - The Group, in collaboration with Tsinghua University, CATL, and eight other renowned entities, jointly launched a national key R&D project: "Research and Application of Key Technologies for Powder Metallurgy and Additive Manufacturing of New Die Casting Mold Steel"[115](index=115&type=chunk) - The Group's independently developed high-nitrogen alloy material **TPMDC02A** successfully passed technical verification and was first delivered for the manufacturing of planetary roller screws, effectively breaking the reliance on imported high-nitrogen alloy materials[117](index=117&type=chunk) - The Group's TGE23 product series successfully obtained certification from the North American Die Casting Association (NADCA), becoming the first Chinese enterprise to receive this honor, proving that the Group has reached world-class levels in materials for large-scale integrated die-casting molds[118](index=118&type=chunk) - The Group actively participated in TCT ASIA 2025, China International Hardware Show, Shanghai Powder Metallurgy Industry Forum, and Suzhou Commercial Heat Treatment and 3D Printing User Conference at the end of March 2025, comprehensively showcasing technological innovations in powder metallurgy and cutting tools, and continuously enhancing brand and industry influence[119](index=119&type=chunk) - Jiangsu Tiangong Precision Tools Co., Ltd., a subsidiary of the Company, once again received the FASTCO 2024 Global "Best Supplier Award", marking its third consecutive year to receive this honor[120](index=120&type=chunk) [Practicing Green Production](index=32&type=section&id=Practicing%20Green%20Production) The Group completed its Phase II EB furnace project, enhancing titanium alloy

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之內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或 因倚賴該等內容而引致之任何損失承擔任何責任。 Tiangong International Company Limited 天 工 國 際 有 限 公 司 * （於開曼群島註冊成立之有限公司） （股份代號：826） 海 外 監 管 公 告 证券代码:920068 证券简称:天工股份 公告编号: 2025-067 江苏天工科技股份有限公司 本公告乃根據香港聯合交易所有限公司證券上市規則第 13.10B 條而作出。 茲載列江蘇天工科技股份有限公司（「天工股份」）（本公司之附屬公司）於北京証券 交易所網站刊登日期為二零二五年八月二十五日的「獨立董事候選人聲明與承諾（嶽遠 斌）」，僅供參閱。 承董事會命 主席 朱小坤 香港，二零二五年八月二十五日 於本公告日期，本公司董事為： 執行董事：朱小坤、朱澤峰、吳鎖軍及蔣光清 獨立非執行董事：李卓然、王雪松及秦珂 * 僅供識別 二、本人任职资格符合下列法律法规、部门规章和规范性文件及北交所业务 规则的要求: (一) ...

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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之內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或 因倚賴該等內容而引致之任何損失承擔任何責任。 Tiangong International Company Limited 天 工 國 際 有 限 公 司 * 承董事會命 主席 朱小坤 香港，二零二五年八月二十五日 於本公告日期，本公司董事為： 執行董事：朱小坤、朱澤峰、吳鎖軍及蔣光清 獨立非執行董事：李卓然、王雪松及秦珂 * 僅供識別 （於開曼群島註冊成立之有限公司） （股份代號：826） 海 外 監 管 公 告 本公告乃根據香港聯合交易所有限公司證券上市規則第 13.10B 條而作出。 茲載列江蘇天工科技股份有限公司（「天工股份」）（本公司之附屬公司）於北京証券 交易所網站刊登日期為二零二五年八月二十五日的「關於擬變更公司註冊資本、類型及 修訂公司章程並辦理工商變更登記事宜的公告」，僅供參閱。 根据《公司法》及《证券法》《北京证券交易所股票上市规则》等相关规定, 公司拟修订《公司章程》的部分条款,修订对照如下: | 原规定 | 修订后 | | ...

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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之內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或 因倚賴該等內容而引致之任何損失承擔任何責任。 Tiangong International Company Limited 天 工 國 際 有 限 公 司 * （於開曼群島註冊成立之有限公司） （股份代號：826） 海 外 監 管 公 告 本公告乃根據香港聯合交易所有限公司證券上市規則第 13.10B 條而作出。 茲載列江蘇天工科技股份有限公司（「天工股份」）（本公司之附屬公司）於北京証券 交易所網站刊登日期為二零二五年八月二十五日的「獨立董事及審計委員會委員變動公 告」，僅供參閱。 承董事會命 主席 朱小坤 香港，二零二五年八月二十五日 本公司及董事会全体成员保证公告内容的真实、准确和完整,没有虚假记载、误导 性陈述或者重大遗漏,并对其内容的真实性、准确性和完整性承担个别及连带法律责任。 一、董事任命的基本情况 因将达到《公司章程》规定的独立董事最长连任年限,江苏天工科技股份有限公司 （以下简称" 公司"）独立董事刘亮先生于 2025 年 8 月 ...

海 外 監 管 公 告 本公告乃根據香港聯合交易所有限公司證券上市規則第 13.10B 條而作出。 茲載列江蘇天工科技股份有限公司（「天工股份」）（本公司之附屬公司）於北京証券 交易所網站刊登日期為二零二五年八月二十五日的「非獨立董事及財務負責人變動公 告」，僅供參閱。 Tiangong International Company Limited 天 工 國 際 有 限 公 司 * （於開曼群島註冊成立之有限公司） 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之內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或 因倚賴該等內容而引致之任何損失承擔任何責任。 （股份代號：826） 证券代码:920068 证券简称:天工股份 公告编号: 2025-063 江苏天工科技股份有限公司 非独立董事及财务负责人变动公告 香港，二零二五年八月二十五日 於本公告日期，本公司董事為： 執行董事：朱小坤、朱澤峰、吳鎖軍及蔣光清 獨立非執行董事：李卓然、王雪松及秦珂 * 僅供識別 承董事會命 主席 朱小坤 三、合规性说明及影响 本公司及董事会全体成员保证公告内容的真 ...

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之內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或 因倚賴該等內容而引致之任何損失承擔任何責任。 Tiangong International Company Limited 天 工 國 際 有 限 公 司 * （於開曼群島註冊成立之有限公司） （股份代號：826） 海 外 監 管 公 告 本公告乃根據香港聯合交易所有限公司證券上市規則第 13.10B 條而作出。 茲載列江蘇天工科技股份有限公司（「天工股份」）（本公司之附屬公司）於北京証券 交易所網站刊登日期為二零二五年八月二十五日的「擬續聘 2025 年度會計師事務所公 告」，僅供參閱。 承董事會命 主席 朱小坤 香港，二零二五年八月二十五日 於本公告日期，本公司董事為： 執行董事：朱小坤、朱澤峰、吳鎖軍及蔣光清 獨立非執行董事：李卓然、王雪松及秦珂 * 僅供識別 证券代码:920068 证券简称:天工股份 公告编号:2025-060 江苏天工科技股份有限公司拟续聘 2025 年度会计师事务所公告 本公司及董事会全体成员保证公告内容的真实、准确和 ...

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之內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或 因倚賴該等內容而引致之任何損失承擔任何責任。 於本公告日期，本公司董事為： 執行董事：朱小坤、朱澤峰、吳鎖軍及蔣光清 獨立非執行董事：李卓然、王雪松及秦珂 Tiangong International Company Limited 天 工 國 際 有 限 公 司 * （於開曼群島註冊成立之有限公司） （股份代號：826） 海 外 監 管 公 告 本公告乃根據香港聯合交易所有限公司證券上市規則第 13.10B 條而作出。 茲載列江蘇天工科技股份有限公司（「天工股份」）（本公司之附屬公司）於北京証券 交易所網站刊登日期為二零二五年八月二十五日的「關於召開 2025 年第一次臨時股東 會通知公告（提供網路投票）」，僅供參閱。 承董事會命 主席 朱小坤 香港，二零二五年八月二十五日 * 僅供識別 证券代码:920068 证券简称:天工股份 == 公告编号:2025-065 江苏天工科技股份有限公司 关于召开 2025 年第一次临时股东会通知公告(提供网络 ...