(Stock Code: 01301) D&G TECHNOLOGY HOLDING COMPANY LIMITED 德 基 科 技 控 股 有 限 公 司 (Incorporated in the Cayman Islands with limited liability) （ 於 開 曼 群 島 註 冊 成 立 之 有 限 公 司 ） （股 份 代 號 : 01301） 12 September 2025 Dear Non-Registered Holder of Securities of the Company, Notification of publication of corporate communications on the Company's website We hereby notify you that the following corporate communications Note (the "Current Corporate Communications") of D&G Technology Holding Company Limited (the "Company" ...

[Company Information](index=3&type=section&id=Company%20Information) [Board and Committee Composition](index=3&type=section&id=Board%20and%20Committee%20Composition) This section lists the members and recent changes of DG Technology Holdings Limited's Board of Directors and its committees (Audit, Remuneration, Nomination, Risk Management), reflecting key personnel configurations in corporate governance - **Ms. Cai Qunli** was appointed Chairman and Chief Executive Officer of the Board on June 23, 2025, while **Mr. Cai Hongneng** resigned as Chairman on the same day[3](index=3&type=chunk) - **Ms. Hu Bingbing** was appointed Independent Non-executive Director, Chairman of the Remuneration Committee, and member of the Audit and Risk Management Committees on September 1, 2025, while **Mr. Huo Weishun** resigned as Independent Non-executive Director on the same day[3](index=3&type=chunk)[4](index=4&type=chunk) [Company Contact and Professional Service Information](index=4&type=section&id=Company%20Contact%20and%20Professional%20Service%20Information) This section provides basic contact and professional service information, including the company's registered office, principal places of business, share registrar, auditor, legal counsel, principal bankers, and company website - The company's registered office is in the Cayman Islands, its principal place of business in Hong Kong is in Sheung Wan, and its principal place of business in China is in Langfang City, Hebei Province[5](index=5&type=chunk) - **PricewaterhouseCoopers** is the company's auditor, and **Mintz Group LLP** is the legal counsel[5](index=5&type=chunk) - The company's website is **www.dgtechnology.com**[6](index=6&type=chunk) [Management Discussion and Analysis](index=5&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=5&type=section&id=Business%20Review) The Group continued as a leading participant in China's and overseas road construction and maintenance machinery industry in H1 2025, primarily providing asphalt mixing plants, RAP crushing equipment, and sand-making machines, while actively expanding environmental protection features, increasing R&D investment, and growing overseas markets - The Group's core products are **asphalt mixing plants**, including conventional and recycling equipment, capable of producing asphalt mixtures for various road construction and maintenance grades[8](index=8&type=chunk) - In H1 2025, China's GDP grew by **5.3%** year-on-year, infrastructure expenditure increased by **4.6%** year-on-year, and the average operating rate of national construction machinery reached **44.8%**[8](index=8&type=chunk)[9](index=9&type=chunk) - During the period, **23 asphalt mixing plant sales contracts** were completed (H1 2024: 10), with revenue increasing by **51.7%** to **RMB215,096,000**, and gross profit increasing by **48.6%** to **RMB73,360,000**[9](index=9&type=chunk) - The Group actively expanded into Southeast Asian and Belt and Road Initiative markets, and collaborated with LiuGong Machinery to develop mid-range asphalt mixing plant solutions[10](index=10&type=chunk) - As of June 30, 2025, the Group held **262 registered patents** (16 invention, 8 design) and **31 software copyrights**, with **29 additional patent applications pending**[14](index=14&type=chunk) - The Group was ranked **45th** among the 'Top 50 Specialized Manufacturers of China Construction Machinery', received the 'Outstanding Performance Award for Sustainable Institutions' at the UN Sustainable Development Goals Hong Kong Achievement Awards, and was honored as an 'Environmental Excellence Enterprise' and '10+ Years Environmental Pioneer' at the BOC Hong Kong Corporate Environmental Leadership Awards[16](index=16&type=chunk) [Outlook](index=17&type=section&id=Outlook) The Group remains optimistic about China's road construction market in H2 2025, anticipating continued government investment to drive equipment demand, while focusing on developing Asian markets and diversifying products through Canadian partnerships to ensure long-term stable growth - National infrastructure expenditure is projected to exceed **RMB3 trillion** in 2025, with transportation development remaining a top priority, continuously driving demand for road construction equipment[17](index=17&type=chunk) - By 2025, the Asian market is expected to account for nearly **60%** of global infrastructure spending, and the Group will focus on developing this market[17](index=17&type=chunk) - The Group established a strategic partnership with a Canadian company specializing in road construction vehicles to diversify products and expand its market footprint[17](index=17&type=chunk) - **Ms. Cai Qunli** was appointed Chairman of the Board, and will lead the company to achieve long-term stable and sustainable growth[18](index=18&type=chunk) [Financial Review](index=19&type=section&id=Financial%20Review) For the six months ended June 30, 2025, the Group's total revenue increased by 51.7% year-on-year to RMB215.1 million, gross profit grew by 48.6% to RMB73.4 million, and gross margin slightly decreased by 0.7 percentage points to 34.1%, with net loss attributable to owners of the Company narrowing to RMB4.2 million, primarily due to increased revenue and gross profit Key Financial Indicators for H1 2025 | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 215,096 | 141,811 | 51.7% | | Cost of Sales | (141,736) | (92,443) | 53.3% | | Gross Profit | 73,360 | 49,368 | 48.6% | | Gross Margin | 34.1% | 34.8% | -0.7 percentage points | | Net Loss Attributable to Owners of the Company | (4,221) | (5,683) | -25.8% | Asphalt Mixing Plant Sales Performance | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 170,213 | 112,578 | 51.2% | | Gross Profit | 61,108 | 34,773 | 75.7% | | Gross Margin | 35.9% | 30.9% | +5.0 percentage points | | Number of Contracts | 23 | 10 | +13 | | Average Contract Value | 7,401 | 11,258 | -34.3% | Asphalt Mixing Plant Sales by Equipment Type | Equipment Type | H1 2025 Revenue (RMB thousands) | H1 2024 Revenue (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Recycling Equipment | 28,276 | 75,139 | -62.4% | | Conventional Equipment | 141,937 | 37,439 | 279.1% | Asphalt Mixing Plant Sales by Region | Region | H1 2025 Revenue (RMB thousands) | H1 2024 Revenue (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Mainland China | 160,269 | 73,800 | 117.2% | | Outside Mainland China | 9,944 | 38,778 | -74.4% | - Revenue from sales of spare parts and refurbished equipment increased by **48.9%** to **RMB32,624,000**, with a gross margin of **46.6%**[29](index=29&type=chunk) - Revenue from sales of other asphalt specialized equipment increased by **67.3%** to **RMB12,259,000**, with a gross margin of **21.0%**[30](index=30&type=chunk) - Distribution costs increased by **52%**, consistent with revenue growth; administrative expenses increased by **3.3%**, mainly due to higher R&D and staff costs[33](index=33&type=chunk)[34](index=34&type=chunk) - Net finance income decreased, primarily due to lower interest income from bank deposits[37](index=37&type=chunk) [Working Capital Management](index=16&type=section&id=Working%20Capital%20Management) The Group's working capital management shows a slight decrease in net current assets and current ratio, but a reduction in inventory turnover days, while trade receivables and bills payable turnover days both increased, reflecting expanded sales activities and optimized supplier payment terms Key Working Capital Indicators | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Net Current Assets | 386,600 | 393,386 | -1.7% | | Current Ratio | 2.8 times | 3.3 times | -0.5 times | | Inventories | 219,295 | 212,960 | +3.0% | | Trade and Bills Receivables | 212,888 | 169,189 | +25.8% | | Trade and Bills Payables | 117,273 | 90,398 | +29.7% | - Inventory turnover days decreased by **38 days** from 314 days to **276 days**, mainly due to an increase in raw materials and work-in-progress for signed but unrecognised sales contracts[40](index=40&type=chunk) - Trade receivables and bills receivable turnover days increased by **33 days** from 131 days to **164 days**, primarily due to a higher proportion of contracts completed with PRC customers at period-end[41](index=41&type=chunk) - Trade payables and bills payable turnover days increased by **7 days** from 126 days to **133 days**, reflecting more favorable payment terms negotiated with suppliers and subcontractors[42](index=42&type=chunk) [Liquidity and Financial Resources](index=17&type=section&id=Liquidity%20and%20Financial%20Resources) The Group primarily relies on internal cash flow and bank credit for funding, with cash and cash equivalents and pledged bank deposits increasing as of June 30, 2025, and no borrowings. Cash flow from operating activities turned positive, while cash outflows from investing and financing activities decreased Liquidity Position | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 55,882 | 48,926 | | Pledged Bank Deposits | 24,986 | 21,672 | | Borrowings | Nil | Nil | Cash Flow Changes | Activity Type | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Cash Generated From/(Used In) Operating Activities | 19,485 | (29,834) | | Net Cash (Used In)/Generated From Investing Activities | (1,166) | 7,408 | | Net Cash Used In Financing Activities | (10,576) | (42,231) | [Capital Commitments and Contingent Liabilities](index=18&type=section&id=Capital%20Commitments%20and%20Contingent%20Liabilities) As of June 30, 2025, the Group had contracted capital commitments for property, plant and equipment of RMB663,000 and provided a finance lease guarantee of up to RMB94,333,000 for its associate, Shanghai Tuopu Capital Commitments | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Contracted - Property, Plant and Equipment | 663 | 648 | - The Group provided a guarantee to Shanghai Tuopu for an amount up to **RMB94,333,000** (December 31, 2024: RMB85,756,000)[45](index=45&type=chunk) [Pledged Assets](index=18&type=section&id=Pledged%20Assets) As of June 30, 2025, the Group pledged certain property, plant and equipment, land use rights, and bank deposits to secure bills payable and bank financing Pledged Assets | Asset Category | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Property, Plant and Equipment | 23,619 | 24,749 | | Land Use Rights | 4,116 | 4,180 | | Bank Deposits | 24,986 | 21,672 | [Foreign Exchange Risk](index=19&type=section&id=Foreign%20Exchange%20Risk) The Group faces foreign exchange risk from sales and purchases denominated in USD and EUR, with RMB exchange rate fluctuations potentially impacting export prices and raw material costs. Management continuously monitors this risk but did not use financial hedging instruments during the period - The Group is exposed to foreign exchange risk arising from sales and purchases denominated in foreign currencies, including **USD** and **EUR**[47](index=47&type=chunk) - Appreciation or depreciation of the RMB against these foreign currencies may impact the Group's export sales and raw material procurement costs[47](index=47&type=chunk) - For the six months ended June 30, 2025, the Group did not use any financial instruments for hedging purposes[47](index=47&type=chunk) [Material Investments and Significant Acquisitions or Disposals](index=19&type=section&id=Material%20Investments%20and%20Significant%20Acquisitions%20or%20Disposals) For the six months ended June 30, 2025, the Group did not undertake any material investments or significant acquisition or disposal activities - For the six months ended June 30, 2025, the Group had no material investments or significant acquisitions or disposals[48](index=48&type=chunk) [Other Information](index=20&type=section&id=Other%20Information) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares, and Debentures](index=20&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares,%20and%20Debentures) This section discloses the interests of the Company's directors and chief executive and their associates in the Company's shares and shares of associated corporations as of June 30, 2025, and explains the impact of certain director position changes on equity disclosure Directors' Interests in Shares and Underlying Shares of the Company | Director Name | Nature of Interest | Number of Shares and Underlying Shares Held | Approximate Percentage of Company's Equity | | :--- | :--- | :--- | :--- | | Mr. Cai Hongneng | Controlled Corporation Interest | 345,696,000 | 55.14% | | Mr. Cai Hongneng | Beneficial Owner | 57,236,000 | 9.13% | | Ms. Cai Qunli | Beneficial Owner | 4,150,000 | 0.64% | | Mr. Cai Hanting | Beneficial Owner | 4,150,000 | 0.64% | | Mr. Liu Jingzhi | Controlled Corporation Interest | 13,500,000 | 2.15% | | Mr. Liu Jingzhi | Spouse's Interest | 150,000 | 0.02% | | Mr. Liu Jingzhi | Beneficial Owner | 2,000,000 | 0.32% | | Mr. Liu Jinzhi | Controlled Corporation Interest | 9,000,000 | 1.44% | | Mr. Liu Jinzhi | Beneficial Owner | 2,000,000 | 0.32% | | Mr. Chen Linghong | Beneficial Owner | 300,000 | 0.05% | | Mr. Li Zongjin | Beneficial Owner | 300,000 | 0.05% | | Mr. Li Weiyi | Beneficial Owner | 300,000 | 0.05% | | Mr. Huo Weishun | Beneficial Owner | 400,000 | 0.06% | | Mr. Alain Vincent Fontaine | Beneficial Owner | 293,113 | 0.05% | Directors' Interests in Shares and Underlying Shares of Associated Corporations | Director Name | Name of Associated Corporation | Nature of Interest | Approximate Percentage of Equity | | :--- | :--- | :--- | :--- | | Mr. Cai Hongneng | Hanming Investment Holdings Limited | Beneficial Owner | 40% | | Ms. Cai Qunli | Hanming Investment Holdings Limited | Beneficial Owner | 20% | | Mr. Cai Hanting | Hanming Investment Holdings Limited | Beneficial Owner | 20% | - **Mr. Cai Hongneng** resigned as Chairman and Executive Director on June 23, 2025, but remains a substantial shareholder, holding a total of approximately **64.27%** of the Company's equity[54](index=54&type=chunk) - **Mr. Huo Weishun** resigned as Independent Non-executive Director on September 1, 2025, and held **400,000 shares** as of June 30, 2025[54](index=54&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares](index=23&type=section&id=Substantial%20Shareholders'%20and%20Other%20Persons'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) This section lists the substantial shareholders holding 5% or more of the Company's issued share capital and their shareholdings as of June 30, 2025 Substantial Shareholders' Shareholding | Substantial Shareholder Name/Name | Nature of Interest | Number of Shares Held | Approximate Percentage of the Company | | :--- | :--- | :--- | :--- | | Hanming Investment Holdings Limited | Beneficial Owner | 345,696,000 | 55.14% | | Mr. Cai Hongneng | Controlled Corporation Interest | 345,696,000 | 55.14% | | Mr. Cai Hongneng | Beneficial Owner | 57,236,000 | 9.13% | | SURE PRECISION LIMITED | Controlled Corporation Interest | 43,967,003 | 7.01% | [Share Option Scheme](index=24&type=section&id=Share%20Option%20Scheme) The Company has a share option scheme to incentivize employees and directors, which stipulates terms for grant, exercise price, exercise period, and share quantity limits. For the six months ended June 30, 2025, no share options were cancelled, exercised, or granted, and no share option expenses were recognized - The Share Option Scheme was adopted on **May 6, 2015**, with a **10-year validity**, aiming to recognize and reward the contributions of employees and directors of the Group's member companies[56](index=56&type=chunk) - The exercise price of share options shall be at least the highest of the nominal value of the shares, the closing price on the offer date, or the average closing price for the five business days immediately preceding the offer date[57](index=57&type=chunk) - The maximum number of shares that may be granted under the scheme shall not exceed **10%** of the total issued shares as of May 27, 2015 (i.e., **60,000,000 shares**)[58](index=58&type=chunk) - For the six months ended June 30, 2025, no share options were cancelled, exercised, or lapsed, and no share options were granted under the Share Option Scheme[59](index=59&type=chunk) - No share option expenses were recognized for the periods ended June 30, 2025, and 2024[60](index=60&type=chunk) [Sufficient Public Float](index=26&type=section&id=Sufficient%20Public%20Float) For the six months ended June 30, 2025, the Company consistently maintained a sufficient public float of not less than 25% of its issued shares as required by the Listing Rules - As of the date of this interim report, the Company has consistently maintained a sufficient public float of not less than **25%** of its issued shares as required by the Listing Rules[62](index=62&type=chunk) [Employees and Remuneration Policy](index=26&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group's employee count increased to 352, with total staff costs of approximately RMB38.5 million. The remuneration policy is based on employee performance, market conditions, and business needs, offering various benefits and training, with no share options granted during the period Employee and Remuneration Overview | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of Employees | 352 employees | 330 employees | | Total Staff Costs (H1 2025) | RMB38,502,000 | RMB33,511,000 (H1 2024) | - The Group's remuneration policy is formulated based on employee performance, market conditions, business needs, and expansion plans, including salaries, discretionary bonuses, and provident fund contributions[63](index=63&type=chunk) - No share options were granted for the six months ended June 30, 2025, and 2024[63](index=63&type=chunk) [Interim Dividend](index=26&type=section&id=Interim%20Dividend) For the six months ended June 30, 2025, the Board did not recommend the payment of any interim dividend, consistent with the same period last year - For the six months ended June 30, 2025, the Board did not recommend the payment of any interim dividend (six months ended June 30, 2024: same)[64](index=64&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=27&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) For the six months ended June 30, 2025, the Company purchased 5,184,000 of its own shares and cancelled 12,424,000 shares, with no listed securities sold during the period Listed Securities Transactions | Transaction Type | Quantity (shares) | Cost (RMB thousands) | | :--- | :--- | :--- | | Purchase of Own Shares | 5,184,000 | 2,962 | | Cancellation of Shares | 12,424,000 | 7,795 | - For the six months ended June 30, 2025, the Company did not sell any listed securities[65](index=65&type=chunk) [Corporate Governance Code](index=27&type=section&id=Corporate%20Governance%20Code) The Company complied with all provisions of the Corporate Governance Code in H1 2025, except for the combined roles of Chairman and CEO held by Ms. Cai Qunli, for which the Board has taken measures to ensure checks and balances - The Company complied with all code provisions of the Corporate Governance Code, except for the roles of Chairman and Chief Executive Officer being combined and held by **Ms. Cai Qunli**, which deviates from code provision C.2.1[66](index=66&type=chunk) - The Board has ensured that reasonable measures and safeguards are in place to maintain effective checks and balances, preserve the Board's independence, and ensure the robust operation of the Company's corporate governance framework[66](index=66&type=chunk) [Model Code for Securities Transactions](index=27&type=section&id=Model%20Code%20for%20Securities%20Transactions) The Company adopted the Model Code for Securities Transactions as set out in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions, and all directors confirmed compliance throughout the period - The Company has adopted the Model Code as set out in Appendix C3 of the Listing Rules, and all directors have confirmed their compliance with the Model Code throughout the period[67](index=67&type=chunk) [Review of Interim Results](index=27&type=section&id=Review%20of%20Interim%20Results) The Group's interim results for the six months ended June 30, 2025, were reviewed by the Audit Committee and by PricewaterhouseCoopers in accordance with Hong Kong Standard on Review Engagements 2410 - The Group's interim results for the six months ended June 30, 2025, were reviewed by the Audit Committee, which comprises **three independent non-executive directors**[68](index=68&type=chunk) - **PricewaterhouseCoopers** has reviewed the unaudited interim condensed consolidated financial information in accordance with Hong Kong Standard on Review Engagements 2410[69](index=69&type=chunk) [Changes in Directors' Information](index=28&type=section&id=Changes%20in%20Directors'%20Information) This section details changes in Board members and their committee roles for the period up to September 1, 2025, including appointments and resignations of the Chairman, Independent Non-executive Directors, Company Secretary, and various committee members - **Mr. Cai Hongneng** resigned as Chairman and Executive Director, and **Ms. Cai Qunli** was appointed Chairman and member of the Nomination Committee[70](index=70&type=chunk) - **Mr. Li Zongjin** resigned as Independent Non-executive Director and member of several committees, and **Mr. Li Weiyi** was appointed Chairman of the Nomination Committee[70](index=70&type=chunk) - **Mr. Huo Weishun** resigned as Independent Non-executive Director and was appointed Chief Financial Officer, Company Secretary, and Authorized Representative[70](index=70&type=chunk) - **Ms. Hu Bingbing** was appointed Independent Non-executive Director, Chairman of the Remuneration Committee, and member of the Audit and Risk Management Committees[71](index=71&type=chunk) [Review Report on Interim Financial Information](index=29&type=section&id=Review%20Report%20on%20Interim%20Financial%20Information) [Introduction and Scope of Review](index=29&type=section&id=Introduction%20and%20Scope%20of%20Review) PricewaterhouseCoopers reviewed DG Technology Holdings Limited's interim financial information for the six months ended June 30, 2025, in accordance with Hong Kong Standard on Review Engagements 2410. The scope of review is less than an audit, thus no audit opinion is expressed - The auditor has reviewed the Group's interim financial information for the six months ended June 30, 2025, which complies with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants[72](index=72&type=chunk) - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410, which is substantially less in scope than an audit, and therefore no audit opinion is expressed[73](index=73&type=chunk) [Conclusion](index=30&type=section&id=Conclusion) Based on the review, the auditor found no matters that lead them to believe the Group's interim financial information is not prepared in all material respects in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' - Based on the review, the auditor found no matters that lead them to believe the Group's interim financial information is not prepared in all material respects in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants[74](index=74&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss](index=31&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) This interim condensed consolidated statement of profit or loss shows that for the six months ended June 30, 2025, the Group's revenue significantly increased by 51.7%, gross profit grew by 48.6%, and both operating loss and loss attributable to owners of the Company narrowed, reflecting improved operating conditions Interim Condensed Consolidated Statement of Profit or Loss Summary | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 215,096 | 141,811 | | Cost of Sales | (141,736) | (92,443) | | Gross Profit | 73,360 | 49,368 | | Other Income and Other Gains/(Losses) - Net | 1,952 | 422 | | Distribution Costs | (50,872) | (33,537) | | Administrative Expenses | (32,631) | (31,598) | | Impairment Loss (Provision)/Reversal - Net for Trade Receivables | (33) | 3,350 | | Operating Loss | (8,224) | (11,995) | | Net Finance Income | 3,259 | 5,714 | | Share of Profit of an Associate - Net | 1,077 | 1,066 | | Loss Before Income Tax | (3,888) | (5,215) | | Income Tax Expense | (333) | (468) | | Loss for the Period Attributable to Owners of the Company | (4,221) | (5,683) | | Loss Per Share Attributable to Owners of the Company for the Period (RMB cents) | (0.66) | (0.89) | [Interim Condensed Consolidated Statement of Comprehensive Income](index=32&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) This interim condensed consolidated statement of comprehensive income shows that for the six months ended June 30, 2025, the Group's loss for the period was RMB4,221,000, and with other comprehensive loss from currency translation differences, the total comprehensive loss attributable to owners of the Company was RMB6,663,000, a slight improvement from the prior period Interim Condensed Consolidated Statement of Comprehensive Income Summary | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss for the Period | (4,221) | (5,683) | | Currency Translation Differences | (2,442) | (1,060) | | Other Comprehensive Loss for the Period, Net of Tax | (2,442) | (1,060) | | Total Comprehensive Loss for the Period Attributable to Owners of the Company | (6,663) | (6,743) | [Interim Condensed Consolidated Statement of Financial Position](index=33&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This interim condensed consolidated statement of financial position shows that as of June 30, 2025, the Group's total assets increased to RMB770.9 million, total liabilities increased to RMB215.2 million, while total equity slightly decreased to RMB555.7 million Interim Condensed Consolidated Statement of Financial Position Summary | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Non-current Assets | 173,752 | 176,731 | | Total Current Assets | 597,137 | 560,947 | | Total Assets | 770,889 | 737,678 | | Total Equity | 555,654 | 565,279 | | Total Non-current Liabilities | 4,698 | 4,838 | | Total Current Liabilities | 210,537 | 167,561 | | Total Liabilities | 215,235 | 172,399 | | Total Equity and Liabilities | 770,889 | 737,678 | [Interim Condensed Consolidated Statement of Changes in Equity](index=35&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This interim condensed consolidated statement of changes in equity shows that for the six months ended June 30, 2025, total equity attributable to owners of the Company slightly decreased due to loss for the period, currency translation differences, and share repurchases, with no dividends distributed Interim Condensed Consolidated Statement of Changes in Equity Summary | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Equity at Beginning of Period | 565,279 | 603,522 | | Loss for the Period | (4,221) | (5,683) | | Currency Translation Differences | (2,442) | (1,060) | | Share Repurchases | (2,962) | – | | Dividends Paid | – | (39,898) | | Total Equity at End of Period | 555,654 | 556,881 | [Interim Condensed Consolidated Statement of Cash Flows](index=36&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This interim condensed consolidated statement of cash flows shows that for the six months ended June 30, 2025, the Group generated net cash of RMB19.5 million from operating activities, a significant improvement from the prior period. Investing activities turned into net cash outflow, and net cash outflow from financing activities substantially decreased, leading to a net increase in cash and cash equivalents Interim Condensed Consolidated Statement of Cash Flows Summary | Activity Type | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Cash Generated From/(Used In) Operating Activities | 19,485 | (29,834) | | Net Cash (Used In)/Generated From Investing Activities | (1,166) | 7,408 | | Net Cash Used In Financing Activities | (10,576) | (42,231) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 7,743 | (64,657) | | Cash and Cash Equivalents at End of Period | 55,882 | 95,148 | [Notes to the Interim Condensed Consolidated Financial Information](index=37&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) [General Information](index=37&type=section&id=General%20Information) This section outlines DG Technology Holdings Limited and its subsidiaries' principal business activities, including the production, distribution, R&D, and sale of asphalt mixing plants, other asphalt specialized equipment, spare parts, and refurbished equipment, confirming the company's shares were listed on the Main Board of the Hong Kong Stock Exchange on May 27, 2015 - The Group is principally engaged in the production, distribution, research and development, and sale of asphalt mixing plants, other asphalt specialized equipment, spare parts, and refurbished equipment[85](index=85&type=chunk) - The Company's shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on **May 27, 2015**[86](index=86&type=chunk) [Basis of Preparation](index=37&type=section&id=Basis%20of%20Preparation) This interim condensed consolidated financial information is prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants and should be read in conjunction with the annual financial statements for the year ended December 31, 2024 - This interim condensed consolidated financial information has been prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants[87](index=87&type=chunk) - The interim condensed consolidated financial information should be read in conjunction with the annual financial statements for the year ended December 31, 2024[87](index=87&type=chunk) [Accounting Policies](index=37&type=section&id=Accounting%20Policies) The Group's accounting policies are consistent with those in the 2024 annual financial statements, with only the adoption of HKAS 21 and HKFRS 1 (Amendments) 'Lack of Exchangeability' having no significant impact on the interim financial information. This section also lists new and revised standards and interpretations not yet adopted - The accounting policies adopted are consistent with those applied in the annual financial statements for the year ended December 31, 2024, except for the adoption of **HKAS 21** and **HKFRS 1 (Amendments) 'Lack of Exchangeability'**[88](index=88&type=chunk)[89](index=89&type=chunk) - The adoption of the above amendments did not have any significant financial impact on this interim condensed consolidated financial information[89](index=89&type=chunk) - The Group is assessing the potential impact of new and revised standards and interpretations not yet adopted (including **HKFRS 18**, **HKFRS 19**, etc.), and currently cannot state whether they will have a significant impact[90](index=90&type=chunk)[91](index=91&type=chunk) [Financial Risk Management](index=39&type=section&id=Financial%20Risk%20Management) The Group faces various financial risks, including market risk (foreign exchange, cash flow, and fair value interest rate risks), credit risk, and liquidity risk. Risk management policies have not changed since December 31, 2024, and the carrying amounts of financial assets and liabilities due within one year approximate their fair values - The Group's operations expose it to various financial risks: **market risk** (including foreign exchange risk, cash flow and fair value interest rate risk), **credit risk**, and **liquidity risk**[92](index=92&type=chunk) - The risk management policies have not changed since **December 31, 2024**[93](index=93&type=chunk) - The carrying amounts of the Group's financial assets and liabilities due within one year approximate their fair values[94](index=94&type=chunk) [Estimates](index=39&type=section&id=Estimates) The preparation of interim condensed consolidated financial information requires management to make judgments, estimates, and assumptions, which are the same as those applied in the consolidated financial statements for the year ended December 31, 2024 - In preparing this interim condensed consolidated financial information, the significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty are the same as those applied in the Group's consolidated financial statements for the year ended December 31, 2024[95](index=95&type=chunk) [Segment Information](index=40&type=section&id=Segment%20Information) The Group has only one main operating segment: the sale of asphalt mixing plants, spare parts, refurbished equipment, and other asphalt specialized equipment. Revenue from Mainland China significantly increased, while revenue from outside Mainland China decreased. Non-current assets are primarily located in Mainland China - The Group has determined that it has only one main operating segment, which is the sale of asphalt mixing plants, spare parts, refurbished equipment, and other asphalt specialized equipment[96](index=96&type=chunk) Revenue Composition | Revenue Source | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Sales of Asphalt Mixing Plants | 170,213 | 112,578 | | Sales of Spare Parts and Refurbished Equipment | 32,624 | 21,906 | | Sales of Other Asphalt Specialized Equipment | 12,259 | 7,327 | | **Total** | **215,096** | **141,811** | Revenue from External Customers by Country | Region | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Mainland China | 198,656 | 97,388 | | Outside Mainland China | 16,440 | 44,423 | | **Total** | **215,096** | **141,811** | Geographical Location of Non-current Assets | Region | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Mainland China | 111,910 | 112,580 | | Outside Mainland China | 51,081 | 53,057 | | **Total** | **162,991** | **165,637** | - For the six months ended June 30, 2025, and 2024, there were no customers whose transactions exceeded **10%** of the Group's revenue[102](index=102&type=chunk) [Other Income and Other Gains/(Losses) - Net](index=42&type=section&id=Other%20Income%20and%20Other%20Gains/(Losses)%20-%20Net) For the six months ended June 30, 2025, the Group's other income and other gains, net, amounted to RMB1,952,000, primarily from government grants and net exchange gains, a significant increase from RMB422,000 in the prior period Other Income and Other Gains/(Losses) - Net | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Government Grants | 1,124 | 1,034 | | Net Exchange Gains/(Losses) | 437 | (1,187) | | Others | 409 | 186 | | **Total** | **1,952** | **422** | - Government grants primarily refer to financial support provided by the government to assist operating activities, with no unfulfilled conditions or other contingencies attached[103](index=103&type=chunk) [Operating Loss](index=43&type=section&id=Operating%20Loss) This section lists the main components of operating loss for the six months ended June 30, 2025, including cost of inventories, employee benefit expenses, depreciation and amortization, and impairment provisions for trade receivables and inventories Components of Operating Loss | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of Inventories | 132,049 | 87,607 | | Employee Benefit Expenses | 38,502 | 33,511 | | Depreciation and Amortization | 3,812 | 4,309 | | Impairment Loss Provision/(Reversal) - Net for Trade Receivables | 33 | (3,350) | | Impairment Loss Provision/(Reversal) - Net for Inventories | 5,515 | (3,199) | [Income Tax Expense](index=43&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense primarily consisted of deferred tax expense of RMB468,000. The Group made no provision for Hong Kong profits tax and PRC corporate income tax due to no taxable profits. Langfang DG, as a high-tech enterprise, enjoys a preferential income tax rate of 15% and a 100% additional deduction for R&D expenses Income Tax Expense | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Deferred Income Tax | 468 | 333 | - The Group had no taxable profits subject to Hong Kong profits tax and PRC corporate income tax during the period, thus no related provisions were made[107](index=107&type=chunk) - Langfang DG, as a 'High-New Technology Enterprise', enjoys a preferential income tax rate of **15%**, and eligible R&D expenses are entitled to a **100%** additional tax deduction[107](index=107&type=chunk) [Loss Per Share](index=45&type=section&id=Loss%20Per%20Share) For the six months ended June 30, 2025, basic loss per share attributable to owners of the Company was RMB0.66 cents, narrowing from RMB0.89 cents in the prior period. There were no potential dilutive shares during the period, so diluted loss per share was the same as basic loss per share Loss Per Share Calculation | Indicator | H1 2025 | | :--- | :--- | | Loss Attributable to Owners of the Company (RMB thousands) | (4,221) | | Weighted Average Number of Ordinary Shares Issued | 638,516,000 | | Basic Loss Per Share (RMB cents) | (0.66) | - For the periods ended June 30, 2025, and 2024, diluted loss per share was the same as basic loss per share, as there were no potential dilutive shares[109](index=109&type=chunk) [Property, Plant and Equipment and Intangible Assets](index=46&type=section&id=Property,%20Plant%20and%20Equipment%20and%20Intangible%20Assets) This section details the changes in the net book value of the Group's property, plant and equipment and intangible assets for the six months ended June 30, 2025, including the impact of additions, disposals, depreciation, amortization, and exchange differences Changes in Net Book Value of Property, Plant and Equipment and Intangible Assets | Item | Property, Plant and Equipment (RMB thousands) | Intangible Assets (RMB thousands) | | :--- | :--- | :--- | | At January 1, 2025 | 100,080 | 1,485 | | Additions | 1,412 | – | | Disposals | (2) | – | | Amortization | – | (234) | | Depreciation | (3,578) | – | | Exchange Differences | (1,517) | (4) | | At June 30, 2025 | 96,395 | 1,247 | [Net Investment in an Associate](index=47&type=section&id=Net%20Investment%20in%20an%20Associate) As of June 30, 2025, the Group's net investment in an associate increased to RMB65,349,000, primarily from its share of profit. The Group also provided a finance lease guarantee for Shanghai Tuopu, amounting to RMB94,333,000 Changes in Investment in an Associate | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Balance at January 1 | 64,072 | 62,256 | | Additions | 200 | – | | Share of Net Profit | 1,077 | 1,066 | | Balance at June 30 | 65,349 | 63,322 | - The Group provided a guarantee to Shanghai Tuopu for an amount up to **RMB94,333,000** (December 31, 2024: RMB85,756,000)[111](index=111&type=chunk) [Trade and Bills Receivables](index=47&type=section&id=Trade%20and%20Bills%20Receivables) As of June 30, 2025, the Group's total trade and bills receivables increased to RMB212,888,000. Customers are generally granted credit terms of up to 18 months, with impairment provisions made based on individual assessment or common credit risk characteristics. This section also provides an aging analysis of trade receivables Total Trade and Bills Receivables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade Receivables from Third Parties | 277,733 | 230,749 | | Less: Loss Allowance | (63,673) | (63,640) | | Less: Discounting Impact | (4,528) | (3,984) | | Bills Receivable | 3,356 | 6,064 | | **Total** | **212,888** | **169,189** | - The Group's customers are generally granted credit terms of up to **18 months**[113](index=113&type=chunk) - Impairment provisions for trade receivables are made based on individual assessment or common credit risk characteristics[114](index=114&type=chunk) Aging Analysis of Trade Receivables | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 Year | 207,566 | 147,779 | | 1 to 2 Years | 4,584 | 19,022 | | 2 to 3 Years | 5,122 | 3,282 | | Over 3 Years | 60,461 | 60,666 | | **Total** | **277,733** | **230,749** | [Trade and Other Payables and Contract Liabilities](index=49&type=section&id=Trade%20and%20Other%20Payables%20and%20Contract%20Liabilities) As of June 30, 2025, the Group's total trade and other payables and contract liabilities increased to RMB210,039,000. Bills payable are secured by certain of the Group's assets. This section also provides an aging analysis of trade and bills payables Total Trade and Other Payables and Contract Liabilities | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade Payables | 60,568 | 26,307 | | Bills Payable | 56,705 | 64,091 | | Amount Due to a Related Party | 252 | 252 | | Other Payables and Accruals | 42,818 | 34,652 | | Contract Liabilities | 49,696 | 41,320 | | **Total** | **210,039** | **166,622** | - The Group's bills payable of **RMB56,705,000** are secured by pledged bank deposits of approximately **RMB20,080,000**, buildings of **RMB23,619,000**, and land use rights of **RMB4,116,000**[116](index=116&type=chunk) Aging Analysis of Trade and Bills Payables | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 Months | 107,950 | 56,814 | | After 3 Months but Within 6 Months | 5,311 | 28,082 | | After 6 Months but Within 1 Year | 1,916 | 3,342 | | Over 1 Year | 2,096 | 2,160 | | **Total** | **117,273** | **90,398** | [Share Capital, Share Premium and Other Reserves](index=50&type=section&id=Share%20Capital,%20Share%20Premium%20and%20Other%20Reserves) This section details the composition and changes in the Group's share capital, share premium, and other reserves. As of June 30, 2025, the number of issued shares decreased due to share repurchases and cancellations. Share premium is distributable, capital reserve originates from controlling shareholder contributions, and statutory reserve and special safety production fund are established according to PRC regulations Issued and Fully Paid Share Capital | Item | Number of Shares (thousands of shares) | RMB thousands | | :--- | :--- | :--- | | At January 1, 2025 | 639,408 | 5,059 | | Cancellation of Repurchased Shares | (12,424) | – | | At June 30, 2025 | 626,984 | 5,059 | - For the six months ended June 30, 2025, the Company repurchased **5,184,000** of its own shares (at a cost of approximately **RMB2,962,000**) and cancelled **12,424,000** repurchased shares (at a total cost of approximately **RMB7,795,000**)[119](index=119&type=chunk) - The Company's share premium account is available for distribution to shareholders, provided that immediately following the date of the proposed dividend distribution, the Company is able to pay its debts as they fall due in the ordinary course of business[120](index=120&type=chunk) - Capital reserve includes contributions from controlling shareholders arising from transactions with owners (in their capacity as equity owners)[121](index=121&type=chunk) - Statutory general reserve is established in accordance with relevant PRC regulations and statutes, and can be used to offset prior year losses or be converted into capital[122](index=122&type=chunk) - In accordance with PRC regulations, the Group's PRC subsidiaries are required to transfer a special safety production fund to a special reserve account at a fixed ratio based on production volume[123](index=123&type=chunk) [Dividends](index=52&type=section&id=Dividends) For the six months ended June 30, 2025, the Company neither paid, declared, nor proposed any interim dividend, consistent with the prior period - For the six months ended June 30, 2025, no interim dividend was paid, declared, or proposed (2024: nil)[124](index=124&type=chunk) [Capital Commitments](index=53&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group had contracted capital commitments for property, plant and equipment of RMB663,000, with no authorized but uncontracted capital commitments Capital Commitments | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Contracted: Property, Plant and Equipment | 663 | 648 | - As of June 30, 2025, there were no authorized but uncontracted capital commitments (December 31, 2024: same)[125](index=125&type=chunk) [Related Party Transactions and Balances](index=53&type=section&id=Related%20Party%20Transactions%20and%20Balances) The Group is controlled by Hanming Investment Holdings Limited, with the ultimate controlling party being the Cai family. As of June 30, 2025, the amount due to a related party (an entity controlled by the Cai family) was RMB252,000, which is unsecured, interest-free, and repayable on demand - The Group is controlled by **Hanming Investment Holdings Limited**, which owns approximately **55%** of the Company's shares, with the ultimate controlling party being the **Cai family**[126](index=126&type=chunk) Year-end Related Party Balances | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Amount Due to a Related Party - Cai Family Controlled Entity | 252 | 252 | - The amount due to a related party is unsecured, interest-free, and repayable on demand[128](index=128&type=chunk)

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 呈交日期: 2025年9月5日 I. 法定/註冊股本變動 致：香港交易及結算所有限公司 公司名稱: 德基科技控股有限公司 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01301 | 說明 | 德基科技控股 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 2,000,000,000 | HKD | | 0.01 | HKD | | 20,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 2,000,000,000 | HKD | | 0.01 | HKD | | 20,000,000 | 本月底 ...

D&G Technology Holding Company Limited 德基科技控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1301） 董事名單與其角色和職能 德基科技控股有限公司董事會（「董事會」）成員載列如下： 執行董事 蔡群力女士（主席） 蔡翰霆先生 劉敬之先生 劉金枝先生 M 有關委員會的成員 香港，2025 年 9 月 1 日 非執行董事 陳令紘先生 Alain Vincent FONTAINE 先生 獨立非執行董事 歐陽偉立先生 李偉壹先生 胡冰冰女士 | 委員會 | | | | | | --- | --- | --- | --- | --- | | | 審核 | 提名 | 薪酬 | 風險管理 | | 董事 | 委員會 | 委員會 | 委員會 | 委員會 | | 蔡群力女士 | | M | M | C | | 蔡翰霆先生 | | | | | | 劉敬之先生 | | | | M | | 劉金枝先生 | | | | | | 陳令紘先生 | | | | | | Alain Vincent FONTAINE 先生 | | | | | | 歐陽偉立先生 | C | M | M | M ...

德基科技控股(01301)发布公告，自2025年9月1日起，杨子杰先生已辞任首席财务官、公司秘书、风险 管理委员会成员及授权代表;霍伟舜先生已辞任独立非执行董事，且已获委任为首席财务官、公司秘书 及授权代表，并将不再担任薪酬委员会主席以及审核委员会、风险管理委员会及薪酬委员会各自的成 员;胡冰冰女士已获委任为独立非执行董事、薪酬委员会主席以及审核委员会、风险管理委员会及薪酬 委员会各自的成员。 ...

Group 1 - The company announced key management changes effective from September 1, 2025 [1] - Yang Zijie has resigned as Chief Financial Officer, Company Secretary, member of the Risk Management Committee, and Authorized Representative [1] - Huo Weishun has resigned as Independent Non-Executive Director and has been appointed as Chief Financial Officer, Company Secretary, and Authorized Representative, while stepping down from the roles of Chairman of the Compensation Committee and member of the Audit Committee, Risk Management Committee, and Compensation Committee [1] - Hu Bingbing has been appointed as Independent Non-Executive Director, Chairman of the Compensation Committee, and member of the Audit Committee, Risk Management Committee, and Compensation Committee [1]

智通财经APP讯，德基科技控股(01301)发布公告，自2025年9月1日起，杨子杰先生已辞任首席财务官、 公司秘书、风险管理委员会成员及授权代表;霍伟舜先生已辞任独立非执行董事，且已获委任为首席财 务官、公司秘书及授权代表，并将不再担任薪酬委员会主席以及审核委员会、风险管理委员会及薪酬委 员会各自的成员;胡冰冰女士已获委任为独立非执行董事、薪酬委员会主席以及审核委员会、风险管理 委员会及薪酬委员会各自的成员。 ...

Group 1 - The company, Deji Technology Holdings (01301), reported a revenue of 215 million RMB for the six months ending June 30, 2025, representing a year-on-year increase of 51.68% [1] - The loss attributable to shareholders narrowed to 4.221 million RMB, a decrease of 25.73% compared to the previous year [1] - The basic loss per share was reported at 0.66 RMB [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。 D&G Technology Holding Company Limited 德基科技控股有限公司 （ 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ） 1 1. 楊子傑先生已辭任首席財務官、公司秘書、風險管理委員會成員及授權代表； 2. 霍偉舜先生已辭任獨立非執行董事，且已獲委任為首席財務官、公司秘書 及授權代表，並將不再擔任薪酬委員會主席以及審核委員會、風險管理委 員會及薪酬委員會各自的成員； 3. 胡冰冰女士已獲委任為獨立非執行董事、薪酬委員會主席以及審核委員會、 風險管理委員會及薪酬委員會各自的成員。 董事會謹此衷心感謝楊先生於任內對本公司作出的寶貴貢獻。 楊先生辭任後，董事會宣佈，霍偉舜先生（「霍先生」）已獲委任為本公司首席財務 官、公司秘書及授權代表，自2025年9月1日起生效。自同日起，彼辭任並不再擔任 獨立非執行董事。 霍先生，51歲，自2015年4月24日起已獲委任為獨立非執 ...

Financial Statements [Interim Condensed Consolidated Statement of Profit or Loss](index=1&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%E8%A1%A8) Revenue grew significantly by 51.7% to 215,096 thousand RMB, and loss attributable to owners narrowed by 25.8% to 4,221 thousand RMB Interim Condensed Consolidated Statement of Profit or Loss | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 215,096 | 141,811 | 51.7% | | Cost of Sales | (141,736) | (92,443) | 53.3% | | Gross Profit | 73,360 | 49,368 | 48.6% | | Operating Loss | (8,224) | (11,995) | -31.5% | | Loss for the Period Attributable to Owners of the Company | (4,221) | (5,683) | -25.8% | [Interim Condensed Consolidated Statement of 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%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) Basic and diluted loss per share attributable to owners narrowed to 0.66 RMB cents, with total comprehensive loss for the period slightly improving to 6,663 thousand RMB Interim Condensed Consolidated Statement of Comprehensive Income | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Loss per share attributable to owners of the Company for the period (RMB cents) | (0.66) | (0.89) | | Loss for the period | (4,221) | (5,683) | | Exchange differences on translation | (2,442) | (1,060) | | Total comprehensive loss attributable to owners of the Company for the period | (6,663) | (6,743) | [Interim Condensed Consolidated Statement of Financial Position](index=3&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) Total assets increased to 770,889 thousand RMB, primarily driven by current assets, while total liabilities rose and total equity slightly decreased Interim Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 770,889 | 737,678 | 4.5% | | Total Non-current Assets | 173,752 | 176,731 | -1.7% | | Total Current Assets | 597,137 | 560,947 | 6.4% | | Total Equity | 555,654 | 565,279 | -1.7% | | Total Liabilities | 215,235 | 172,399 | 24.8% | | Total Non-current Liabilities | 4,698 | 4,838 | -2.9% | | Total Current Liabilities | 210,537 | 167,561 | 25.6% | Notes to the Financial Information [General Information](index=5&type=section&id=1%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) The company specializes in the production, distribution, R&D, and sale of asphalt mixing plants and related equipment, listed on the HKEX Main Board since May 2015 - The company's core business involves the production, distribution, R&D, and sale of asphalt mixing plants and related equipment[7](index=7&type=chunk) - The company was listed on the Main Board of The Stock Exchange of Hong Kong Limited on **May 27, 2015**[8](index=8&type=chunk) [Basis of Preparation](index=5&type=section&id=2%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The interim condensed consolidated financial information is prepared under HKAS 34 'Interim Financial Reporting' and should be read with the 2024 annual financial statements - The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[10](index=10&type=chunk) [Accounting Policies](index=5&type=section&id=3%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) Accounting policies align with 2024 annual financial statements, adopting new standards effective January 1, 2025, with no significant financial impact, and assessing unadopted standards - Adopted accounting policies are consistent with the 2024 annual financial statements, incorporating new and revised standards effective **January 1, 2025**, including HKAS 21 and HKFRS 1 (Amendments) "Lack of Exchangeability", which had no significant financial impact[11](index=11&type=chunk)[12](index=12&type=chunk) - Several new and revised standards not yet adopted are listed, including HKFRS 9, HKFRS 7, HKFRS 1, HKFRS 10, and HKAS 28, with effective dates mostly in **2026 or 2027**, and their potential impact is still under assessment[13](index=13&type=chunk)[14](index=14&type=chunk) [Estimates](index=6&type=section&id=4%20%E4%BC%B0%E8%A8%88) Significant judgments and estimation uncertainties for interim financial information are consistent with 2024 annual statements, with actual results potentially differing from estimates - Significant judgments and sources of estimation uncertainty in preparing the interim financial information are consistent with those applied in the 2024 annual consolidated financial statements[15](index=15&type=chunk) [Segment Information](index=6&type=section&id=5%20%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group operates a single segment, selling asphalt mixing plants and related equipment, with significant revenue growth in Mainland China and a decline overseas - The Group operates a single primary business segment: sales of asphalt mixing plants, spare parts, refurbished equipment, and other asphalt specialized equipment[16](index=16&type=chunk) Revenue by Product Type | Revenue Source | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Sales of asphalt mixing plants | 170,213 | 112,578 | | Sales of spare parts and refurbished equipment | 32,624 | 21,906 | | Sales of other asphalt specialized equipment | 12,259 | 7,327 | | **Total Revenue** | **215,096** | **141,811** | Revenue by Geographical Market | Revenue from External Customers (by Country) | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Mainland China | 198,656 | 97,388 | | Outside Mainland China | 16,440 | 44,423 | | **Total Revenue** | **215,096** | **141,811** | [Other Income and Other Gains/(Losses) – Net](index=8&type=section&id=6%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E2%88%95%EF%BC%88%E虧損%EF%BC%89%E6%B7%A8%E9%A1%8D) Other income and other gains – net significantly increased, driven by stable government grants and a reversal from exchange losses to gains Other Income and Other Gains/(Losses) – Net | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | Change (thousand RMB) | | :--- | :--- | :--- | :--- | | Government grants | 1,124 | 1,034 | 90 | | Net exchange gains/(losses) | 437 | (1,187) | 1,624 | | **Total** | **1,952** | **422** | **1,530** | [Operating Loss](index=8&type=section&id=7%20%E7%B6%93%E7%87%9F%E虧損) Operating loss narrowed, influenced by increased inventory costs and employee benefits, but offset by a significant reduction in trade receivables impairment Operating Loss Components | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Cost of inventories | 132,049 | 87,607 | | Employee benefit expenses | 38,502 | 33,511 | | Net impairment loss provision/(reversal) on trade receivables | 33 | (3,350) | | Net impairment loss provision/(reversal) on inventories | 5,515 | (3,199) | [Income Tax Expense](index=9&type=section&id=8%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Mainland China operations are subject to a 25% statutory tax rate, with Langfang Deji enjoying a 15% preferential rate as a 'High-Tech Enterprise', and no tax provision due to no taxable profit - Langfang Deji Machinery Technology Co., Ltd., as a "High and New Technology Enterprise", enjoys a preferential income tax rate of **15%**[27](index=27&type=chunk) - Eligible R&D expenditures are deductible with an additional **100%** tax deduction[27](index=27&type=chunk) [Loss Per Share](index=9&type=section&id=9%20%E6%AF%8F%E8%82%A1%E虧損) Basic loss per share narrowed to 0.66 RMB cents, driven by reduced loss attributable to owners, with diluted loss per share being identical due to no dilutive shares Loss Per Share Calculation | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Loss attributable to owners of the Company (thousand RMB) | (4,221) | (5,683) | | Weighted average number of ordinary shares issued | 638,516,000 | 639,408,000 | | Basic loss per share (RMB cents per share) | (0.66) | (0.89) | [Trade and Bills Receivables](index=10&type=section&id=10%20%E8%B2%A3%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E6%94%B6%E7%A5%A8%E6%93%9A) Total trade and bills receivables increased to 212,888 thousand RMB, driven by third-party receivables, with credit terms up to 18 months and impairment provisions based on risk Trade and Bills Receivables | Metric | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Total trade and bills receivables | 212,888 | 169,189 | | Trade receivables within 1 year | 207,566 | 147,779 | | Trade receivables over 3 years | 60,461 | 60,666 | - Customers are generally granted credit terms of up to **18 months**[30](index=30&type=chunk) [Trade and Other Payables and Contract Liabilities](index=11&type=section&id=11%20%E8%B2%A3%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E5%90%88%E7%B4%84%E8%B2%A0%E5%82%B5) Total trade and other payables increased to 160,343 thousand RMB, with contract liabilities at 49,696 thousand RMB, and bills payable secured by pledged assets Trade and Other Payables and Contract Liabilities | Metric | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Trade payables | 60,568 | 26,307 | | Bills payable | 56,705 | 64,091 | | Contract liabilities | 49,696 | 41,320 | | Total trade and other payables | 160,343 | 125,302 | - Bills payable are secured by pledged bank deposits of approximately **20,080 thousand RMB**, buildings of **23,619 thousand RMB**, and land use rights of **4,116 thousand RMB**[31](index=31&type=chunk) [Share Capital, Share Premium and Other Reserves](index=12&type=section&id=12%20%E8%82%A1%E6%9C%AC%E3%80%81%E8%82%A1%E4%BB%BD%E6%BA%A2%E5%83%B9%E5%8F%8A%E5%85%B6%E4%BB%96%E5%84%B2%E5%82%99) Share capital remained unchanged, with some shares repurchased and cancelled; reserves include distributable share premium, capital reserve from shareholder contributions, and statutory reserves - For the six months ended June 30, 2025, the company repurchased a total of **5,184,000** of its own shares at a total cost of approximately **2,962 thousand RMB**[33](index=33&type=chunk) - The company cancelled a total of **12,424,000** repurchased shares with a total cost of approximately **7,795 thousand RMB** during the period[33](index=33&type=chunk) - The statutory general reserve can be used to compensate for losses from previous years and can be converted into capital in proportion to investors' existing equity[37](index=37&type=chunk) [Dividends](index=13&type=section&id=14%20%E8%82%A1%E6%81%AF) No interim dividends were paid, declared, or proposed by the board for the six months ended June 30, 2025 - For the six months ended June 30, 2025, no interim dividends were paid, declared, or proposed[39](index=39&type=chunk) Management Discussion and Analysis [Overview](index=14&type=section&id=%E6%A6%82%E8%A6%BD) The Group, a leading road construction machinery provider, achieved strong revenue and gross profit growth in H1 2025, driven by infrastructure investment and effective cost and inventory management - The Group is a leading market participant in the road construction and maintenance machinery industry in Mainland China and overseas markets[40](index=40&type=chunk) - Core products include asphalt mixing plants, encompassing conventional and recycling equipment, along with refurbishment services and advanced technologies like RAP crushing equipment and sand-making machines[40](index=40&type=chunk)[41](index=41&type=chunk) Key Financial Performance | Metric | H1 2025 (thousand RMB) | H1 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 215,096 | 141,811 | 51.7% | | Gross Profit | 73,360 | 49,368 | 48.6% | [Business Development](index=15&type=section&id=%E6%A5%AD%E5%8B%99%E7%99%BC%E5%B1%95) The Group diversifies revenue by expanding asphalt-related businesses, investing in combustion technology and R&D, holding 262 registered patents and 31 software copyrights in China - Committed to developing asphalt-related businesses along the supply chain, seeking strategic partners for cooperative production and sales of asphalt mixtures[45](index=45&type=chunk) - Continuously conducting combustion technology research, developing burner combustion equipment, and providing technical support services, with **59** registered combustion technology patents and **4** pending registrations[46](index=46&type=chunk) - As of June 30, 2025, the Group holds **262** registered patents (including **16** invention patents and **8** design patents) and **31** software copyrights in China, with **29** patent applications pending approval[47](index=47&type=chunk) [Marketing and Awards](index=16&type=section&id=%E7%87%9F%E9%8A%B7%E5%8F%8A%E7%8D%8E%E9%A0%85) The Group enhanced brand image through industry events and online platforms, earning multiple industry and environmental awards for its specialized manufacturing and sustainability efforts - Participated in various promotional activities, technical seminars, and corporate social responsibility events, including the Chengdu Southwest Asphalt Recycling Mixing Equipment Technology Exchange Conference and the CTT Expo in Moscow[48](index=48&type=chunk) - In **May 2025**, ranked **45th** among the Top 50 Specialized Manufacturers in China's Construction Machinery Industry[48](index=48&type=chunk) - In **July and August 2025**, received the "Sustainable Development Institution Excellence Award" at the UN Sustainable Development Goals Hong Kong Achievement Awards 2025, and "Environmental Excellence Enterprise" and "10 Years+ Environmental Pioneer" honors at the BOC Hong Kong Corporate Environmental Leadership Awards[48](index=48&type=chunk) [Prospects](index=17&type=section&id=%E5%89%8D%E6%99%AF) The Group is optimistic about H2 2025 China road construction market, targeting global expansion in Asia and product diversification through strategic partnerships, led by new Board Chairman Ms. Cai Qunli - National infrastructure spending is projected to exceed **3 trillion RMB** in **2025**, with transportation development remaining a top priority[49](index=49&type=chunk) - Committed to global expansion, focusing on profitable Asian markets, particularly emerging markets like the Philippines and Indonesia[49](index=49&type=chunk) - Strengthening strategic cooperation with a Canadian company specializing in road construction vehicles to expand product offerings[49](index=49&type=chunk) - CEO Ms. Cai Qunli was appointed as the Board Chairman, effective **June 23, 2025**, and will lead the company towards long-term stable and sustainable growth in domestic and international markets[50](index=50&type=chunk) [Financial Review](index=18&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section reviews H1 2025 financial performance, showing total revenue growth of 51.7% and gross profit growth of 48.6%, with net loss attributable to owners narrowing to 4,221 thousand RMB Key Financial Metrics | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 215,096 | 141,811 | 51.7% | | Gross Profit | 73,360 | 49,368 | 48.6% | | Gross Profit Margin | 34.1% | 34.8% | -0.7 percentage points | | Net Loss Attributable to Owners of the Company | (4,221) | (5,683) | -25.8% | [Sales of Asphalt Mixing Plants](index=18&type=section&id=%E6%B7%BA%E9%9D%92%E6%B7%B7%E5%90%88%E6%96%99%E6%攪拌%E8%A8%AD%E5%82%99%E9%8A%B7%E5%94%AE) Asphalt mixing plant sales revenue grew 51.2% to 170,213 thousand RMB, driven by increased contracts and improved gross margin, with strong growth in conventional equipment and China market sales Sales of Asphalt Mixing Plants Performance | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Sales Revenue of Asphalt Mixing Plants | 170,213 | 112,578 | 51.2% | | Gross Profit | 61,108 | 34,773 | 75.7% | | Gross Profit Margin | 35.9% | 30.9% | 5.0 percentage points | | Number of Contracts | 23 | 10 | 13 | | Average Contract Value | 7,401 | 11,258 | -34.3% | Sales of Asphalt Mixing Plants by Equipment Type | Equipment Type | 2025 (thousand RMB) | 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Recycling Equipment Revenue | 28,276 | 75,139 | -62.4% | | Recycling Equipment Gross Profit Margin | 35.4% | 31.6% | 3.8 percentage points | | Conventional Equipment Revenue | 141,937 | 37,439 | 279.1% | | Conventional Equipment Gross Profit Margin | 36.0% | 29.4% | 6.6 percentage points | Sales of Asphalt Mixing Plants by Region | Region | 2025 (thousand RMB) | 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | China Sales Revenue | 160,269 | 73,800 | 117.2% | | China Sales Gross Profit Margin | 35.4% | 29.5% | 5.9 percentage points | | Overseas Sales Revenue | 9,944 | 38,778 | -74.4% | | Overseas Sales Gross Profit Margin | 43.8% | 33.5% | 10.3 percentage points | [Sales of Spare Parts and Components and Refurbished Equipment](index=20&type=section&id=%E9%9B%B6%E9%83%A8%E4%BB%B6%E5%8F%8A%E7%B5%84%E4%BB%B6%E4%BB%A5%E5%8F%8A%E7%B6%93%E6%94%B9%E9%80%A0%E8%A8%AD%E5%82%99%E9%8A%B7%E5%94%AE) Sales of spare parts, components, and refurbished equipment grew 48.9% to 32,624 thousand RMB, driven by increased demand for conventional equipment refurbishment, with gross margin slightly improving to 46.6% Sales of Spare Parts and Components and Refurbished Equipment Performance | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 32,624 | 21,906 | 48.9% | | Gross Profit | 15,194 | 9,989 | 52.1% | | Gross Profit Margin | 46.6% | 45.6% | 1.0 percentage points | [Sales of Other Asphalt Specialized Equipment](index=21&type=section&id=%E5%85%B6%E4%BB%96%E6%B7%BA%E9%9D%92%E5%B0%88%E9%96%80%E8%A8%AD%E5%82%99%E9%8A%B7%E5%94%AE) Other asphalt specialized equipment sales revenue grew 67.3% to 12,259 thousand RMB, with gross margin improving to 21.0%, driven by strategic partnerships and new product promotion Sales of Other Asphalt Specialized Equipment Performance | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 12,259 | 7,327 | 67.3% | | Gross Profit | 2,573 | 1,407 | 82.9% | | Gross Profit Margin | 21.0% | 19.2% | 1.8 percentage points | | Number of Contracts | 6 | 3 | 3 | - The Group has been the exclusive supplier of LiuGong Asphalt Equipment (LAP) series asphalt mixing plants since **May 2021**[61](index=61&type=chunk) - Actively promoting RAP crushing equipment and sand-making machines as new revenue sources and value-added services in both local and overseas asphalt mixing plant markets[62](index=62&type=chunk) [Other Income and Other Gains/(Losses) – Net](index=21&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E2%88%95%EF%BC%88%E虧損%EF%BC%89%E6%B7%A8%E9%A1%8D) Other income and other gains – net increased primarily due to a significant rise in net exchange gains, reversing prior year's losses - The increase in other income and other gains – net was primarily due to an increase in net exchange gains of **1.6 million RMB** (2024: exchange losses of **1.2 million RMB**)[63](index=63&type=chunk) [Distribution Costs](index=21&type=section&id=%E5%88%86%E9%8A%B7%E6%88%90%E6%9C%AC) Distribution costs increased by 52%, aligning with revenue growth, driven by higher logistics, sales staff, commissions, marketing, and warranty expenses - Distribution costs increased by **52%**, consistent with revenue growth, primarily driven by higher logistics expenses, sales and marketing staff costs, distributor commissions, marketing costs, and warranty costs[64](index=64&type=chunk) [Administrative Expenses](index=22&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Administrative expenses rose 3.3%, mainly due to increased R&D and employee costs, partially offset by reduced legal and professional fees - Administrative expenses increased by **3.3%**, primarily due to higher R&D costs and employee costs[65](index=65&type=chunk) [Impairment Loss on Trade Receivables (Provision)/Reversal – Net](index=22&type=section&id=%E8%B2%A3%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E6%B8%9B%E5%80%BC%E虧損%EF%BC%88%E6%92%A5%E5%82%99%EF%BC%89%E2%88%95%E6%92%A5%E5%9B%9E%E6%B7%A8%E9%A1%8D) Net impairment loss provision for trade receivables was 33 thousand RMB, a significant reduction from prior year's reversal, due to recognizing expected credit losses on overdue receivables Impairment Loss on Trade Receivables | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Net impairment loss provision/(reversal) on trade receivables | 33 | (3,350) | [Share of Net Profit of an Associate](index=22&type=section&id=%E5%88%86%E4%BD%94%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E6%BA%A2%E5%88%A9%E6%B7%A8%E9%A1%8D) Share of net profit of an associate was 1,077 thousand RMB, mainly from Topu Financial Leasing (Shanghai) Co., Ltd., showing slight growth - Share of net profit of an associate was **1,077 thousand RMB**, primarily from the profit of Topu Financial Leasing (Shanghai) Co., Ltd[67](index=67&type=chunk) [Net Finance Income](index=22&type=section&id=%E8%B2%A1%E5%8B%99%E6%94%B6%E5%85%A5%E6%B7%A8%E9%A1%8D) Net finance income decreased, primarily due to lower interest income from bank deposits - Net finance income decreased primarily due to lower interest income from bank deposits[68](index=68&type=chunk) [Income Tax Expense](index=22&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense for the period was primarily due to deferred tax expense from warranty provisions - Income tax expense was primarily due to deferred tax expense arising from warranty provisions[69](index=69&type=chunk) [Loss Attributable to Owners of the Company](index=22&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%93%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%94%E虧損) Loss attributable to owners narrowed to 4,221 thousand RMB, primarily due to increased revenue and gross profit Loss Attributable to Owners of the Company | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Loss attributable to owners of the Company | (4,221) | (5,683) | [Working Capital Management](index=22&type=section&id=%E7%87%9F%E9%81%8B%E8%B3%87%E9%87%91%E7%AE%A1%E7%90%86) Net current assets slightly decreased, current ratio fell to 2.8 times, with increased inventory and receivables, and slightly increased payables Working Capital Metrics | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Net Current Assets | 386,605 thousand RMB | 393,386 thousand RMB | -1.7% | | Current Ratio | 2.8 times | 3.3 times | -0.5 times | | Inventories | 219,295 thousand RMB | 212,960 thousand RMB | +3.0% | | Inventory Turnover Days | 276 days | 314 days | -38 days | | Trade and Bills Receivables | 212,888 thousand RMB | 169,189 thousand RMB | +25.8% | | Trade and Bills Receivables Turnover Days | 164 days | 131 days | +33 days | | Trade and Bills Payables | 117,273 thousand RMB | 90,398 thousand RMB | +29.7% | | Trade and Bills Payables Turnover Days | 133 days | 126 days | +7 days | [Liquidity and Financial Resources](index=23&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group funds operations via internal cash and bank credit, with increased cash and pledged deposits, no borrowings, and operating cash flow turning positive - The Group generally funds its operations through internally generated cash flows and credit facilities granted by its principal bankers[74](index=74&type=chunk) Liquidity Position | Metric | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Cash and cash equivalents | 55,882 | 48,926 | | Pledged bank deposits | 24,986 | 21,672 | | Borrowings | Nil | Nil | - Net cash generated from operating activities was **19,485 thousand RMB** (2024: cash used in operating activities of **29,834 thousand RMB**)[75](index=75&type=chunk) [Capital Commitments](index=24&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) Contracted capital commitments for property, plant, and equipment were 663 thousand RMB, with guarantees for customer finance leases through Shanghai Topu up to 94,333 thousand RMB Capital Commitments | Metric | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Contracted – Property, plant and equipment | 663 | 648 | - The Group provides guarantees to Shanghai Topu for finance leases provided to customers for the purchase of the Group's equipment, with a maximum guarantee amount of **94,333 thousand RMB**[77](index=77&type=chunk) [Pledge of Assets](index=24&type=section&id=%E8%B3%87%E7%94%A2%E8%B3%AA%E6%8A%BC) Property, plant, and equipment, land use rights, and bank deposits were pledged to secure bills payable and bank financing as of June 30, 2025 - Property, plant and equipment (**23,619 thousand RMB**), land use rights (**4,116 thousand RMB**), and bank deposits (**24,986 thousand RMB**) are pledged to secure the Group's bills payable and bank financing[78](index=78&type=chunk) [Foreign Exchange Risk](index=24&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The Group faces foreign exchange risk from USD and EUR denominated transactions, with management monitoring but no hedging instruments used during the period - The Group is exposed to foreign exchange risk arising from sales and purchases denominated in foreign currencies, including **USD** and **EUR**[79](index=79&type=chunk) - For the six months ended June 30, 2025, the Group did not use any financial instruments for hedging purposes[79](index=79&type=chunk) [Material Investments and Material Acquisitions or Disposals](index=24&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E5%8F%8A%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E6%88%96%E5%87%BA%E5%94%AE) The Group had no material investments, acquisitions, or disposals for the six months ended June 30, 2025 - For the six months ended June 30, 2025, the Group had no material investments or material acquisitions or disposals[80](index=80&type=chunk) [Employees and Remuneration Policy](index=25&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group had 352 employees with total staff costs of 38,502 thousand RMB, and remuneration is performance-based, with no share options granted Employee Information | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of Employees | 352 | 330 | | Total Staff Costs | 38,502 thousand RMB | 33,511 thousand RMB | - Remuneration policy is formulated based on employee performance, market conditions, business needs, and expansion plans, including salaries, discretionary bonuses, and provident fund scheme contributions[81](index=81&type=chunk) - No share options were granted for the six months ended June 30, 2025 and 2024[81](index=81&type=chunk) [Interim Dividends](index=25&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The board did not recommend any interim dividends for the six months ended June 30, 2025 - For the six months ended June 30, 2025, the board of directors did not recommend the payment of any interim dividends[82](index=82&type=chunk) [Purchase, Sale or Redemption of the Company’s Listed Securities](index=25&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) The company repurchased 5,184,000 shares and cancelled 12,424,000 shares, with no sales of listed securities during the six months ended June 30, 2025 - The company repurchased a total of **5,184,000** of its own shares at a total cost of approximately **2,962 thousand RMB**[83](index=83&type=chunk) - The company cancelled **12,424,000** shares with a total value of approximately **7,795 thousand RMB**[83](index=83&type=chunk) [Corporate Governance](index=25&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The Group maintains high corporate governance, complying with Listing Rules, with the review committee confirming interim results and directors' compliance, and Ms. Cai Qunli appointed as Chairman - The company complies with all code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules, except for the roles of Chairman and Chief Executive Officer being combined by Ms. Cai Qunli, for which the Board has taken measures to maintain effective checks and balances[84](index=84&type=chunk) - All directors have confirmed compliance with the Model Code for Securities Transactions set out in Appendix C3 of the Listing Rules for the entire period of the six months ended June 30, 2025[85](index=85&type=chunk) - The interim results have been reviewed by the Audit Committee and by PricewaterhouseCoopers in accordance with Hong Kong Standard on Review Engagements 2410[86](index=86&type=chunk)[87](index=87&type=chunk) - Mr. Cai Hongneng resigned as Chairman and Executive Director of the company, and Ms. Cai Qunli was appointed as Chairman, effective **June 23, 2025**[88](index=88&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=27&type=section&id=%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) The interim results announcement is published on HKEX and company websites, with the interim report to be dispatched to shareholders in due course - The interim results announcement has been published on the website of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk) and the company's website (www.dgtechnology.com)[90](index=90&type=chunk) [Board of Directors](index=27&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83) As of the announcement date, the Board comprises four executive, two non-executive, and three independent non-executive directors, with Ms. Cai Qunli as Chairman - As of the announcement date, the company's executive directors are Ms. Cai Qunli, Mr. Cai Hanting, Mr. Liu Jingzhi, and Mr. Liu Jinzhi[92](index=92&type=chunk) - The non-executive directors are Mr. Chen Linghong and Mr. Alain Vincent Fontaine; the independent non-executive directors are Mr. Au Yeung Wai Lap, Mr. Li Wai Yat, and Mr. Fok Wai Shun[92](index=92&type=chunk)