Core Viewpoint - Citigroup's research report indicates that Haitan International's management has revealed a recent slowdown in orders, leading to a forecast of revenue growth in the second half of the year potentially dropping to high single digits, which is below the 12.5% growth rate seen in the first half of the year [1] Group 1 - The company has been removed from Citigroup's preferred list for Chinese industrials [1] - Earnings forecasts for 2025 to 2027 have been revised down by 2% [1] - The target price has been reduced from HKD 33.5 to HKD 30, while maintaining a "buy" rating due to perceived low valuation and a dividend yield of approximately 4% [1]

[Executive Summary](index=3&type=section&id=%E6%91%98%E8%A6%81) H1 2025 sales grew 12.5% and net profit 12.6%, benefiting from global supply chain shifts and improved gross margin Key Financial Performance H1 2025 (YoY) | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 9,018.3 | 8,017.8 | 12.5 | | Gross Profit | 2,960.2 | 2,591.6 | 14.2 | | Operating Profit | 1,983.5 | 1,750.8 | 13.3 | | Profit Attributable to Shareholders | 1,711.5 | 1,520.6 | 12.6 | | Basic Earnings Per Share (RMB) | 1.07 | 0.95 | 12.6 | - Company sales revenue increased by **12.5% year-on-year**, benefiting from global supply chain restructuring and accelerated growth in downstream industries like new energy vehicles[9](index=9&type=chunk) - Gross profit margin increased to **32.8%** (H1 2024: 32.3%) due to relatively lower raw material prices during the reporting period[9](index=9&type=chunk) - Net cash generated from operating activities reached **RMB 1,402.4 million**, with a net cash position (including wealth management products) of **RMB 10,923 million**[9](index=9&type=chunk) - The Board resolved not to declare an interim dividend, with potential distribution to be considered after reviewing the full-year results[9](index=9&type=chunk) [Company Profile and Information](index=4&type=section&id=%E5%85%AC%E5%8F%B8%E7%B0%A1%E4%BB%8B%E5%8F%8A%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) This section details the company's governance structure, including board members and committees, along with its registered offices and key banking relationships - The company's Board of Directors includes executive directors such as **Mr. Zhang Jianming (Chairman)** and **Mr. Zhang Bin (CEO)**, as well as non-executive and independent non-executive directors[10](index=10&type=chunk) - The company has established an Audit Committee, Nomination Committee, and Remuneration Committee to enhance corporate governance[10](index=10&type=chunk) - The company's registered office is in the Cayman Islands, with principal places of business in mainland China and Hong Kong SAR[10](index=10&type=chunk) - Key banking relationships include Agricultural Bank of China, Bank of China, Hang Seng Bank, HSBC, and other domestic and international banks[11](index=11&type=chunk) [Investor Information](index=5&type=section&id=%E6%8A%95%E8%B3%87%E8%80%85%E8%B3%87%E6%96%99) This section provides key investor details, including stock listing, earnings per share, issued shares, market capitalization, and investor relations contacts - Company shares are listed on the Hong Kong Stock Exchange, with stock code **1882**[12](index=12&type=chunk) - Earnings per share for H1 2025 were **RMB 1.07**[13](index=13&type=chunk) - As of June 30, 2025, the number of issued shares was **1,596,000,000**, with a market capitalization of **HKD 32,558.4 million**[15](index=15&type=chunk) - The company provides investor relations contact phone numbers, fax, email, and addresses for mainland China and Hong Kong[14](index=14&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) [Business Review](index=6&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) H1 2025 sales grew 12.5% and net profit 12.6%, driven by global supply chain shifts and improved gross margin [Domestic and Overseas Sales](index=7&type=section&id=%E5%9C%8B%E5%85%A7%E5%8F%8A%E6%B5%B7%E5%A4%96%E9%8A%B7%E5%94%AE) The company's H1 2025 sales saw stable domestic performance and significant overseas growth, driven by global supply chain adjustments H1 2025 Sales by Region (RMB million) | Region | H1 2025 | Share (%) | H1 2024 | Share (%) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Domestic Sales | 5,200.6 | 57.7 | 5,182.5 | 64.6 | 0.3 | | Overseas Sales | 3,817.7 | 42.3 | 2,835.3 | 35.4 | 34.7 | | Total | 9,018.3 | 100 | 8,017.8 | 100 | 12.5 | - Domestic sales remained stable at **RMB 5,200.6 million**, achieved by expanding key clients and deepening market penetration[18](index=18&type=chunk) - Overseas sales significantly grew by **34.7%** to **RMB 3,817.7 million**, driven by global supply chain restructuring and the company's continuous overseas expansion, particularly in Southeast Asian markets[18](index=18&type=chunk) [Injection Molding Machine Sales by Product Series](index=7&type=section&id=%E4%BB%A5%E7%94%A2%E5%93%81%E7%B3%BB%E5%88%97%E5%8A%83%E5%88%86%E7%9A%84%E6%B3%A8%E5%A1%91%E6%A9%9F%E9%8A%B7%E5%94%AE%E6%AF%94%E4%BE%8B) Injection molding machine sales and component services both experienced double-digit growth in H1 2025, driven by strong demand in key sectors H1 2025 Sales by Product Series (RMB million) | Product Series | H1 2025 | Share (%) | H1 2024 | Share (%) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Injection Molding Machines | 8,636.9 | 95.8 | 7,702.5 | 96.1 | 12.1 | | Components and Services | 381.4 | 4.2 | 315.3 | 3.9 | 21.0 | | Total | 9,018.3 | 100 | 8,017.8 | 100 | 12.5 | - Injection molding machine sales increased by **12.1% year-on-year** to **RMB 8,636.9 million**, driven by demand from overseas daily consumer goods and domestic new energy vehicles and home appliance industries, with rapid growth in Mars and Jupiter series[21](index=21&type=chunk) - Component and service sales increased by **21.0% year-on-year** to **RMB 381.4 million**[21](index=21&type=chunk) [Outlook](index=8&type=section&id=%E5%B1%95%E6%9C%9B) The company anticipates a complex global economic environment in H2 2025 and plans to focus on technological innovation, global expansion, and localized supply chain development - H2 2025 is expected to see continued global economic divergence and weak recovery, intensified trade protectionism, and geopolitical conflicts, while the domestic economy faces pressure on both internal and external demand alongside structural transformation[22](index=22&type=chunk) - The company will remain customer-oriented, developing more energy-efficient, intelligent, and integrated new machine models through technological innovation, and providing customized solutions and value-added services[22](index=22&type=chunk) - The company will advance its "Five-Five" strategy, deepen global investment, increase investment in overseas local factories, strengthen local supply chain construction, and accelerate the construction of factories in Japan, Serbia, and Chennai, India, to navigate complex geopolitical situations[23](index=23&type=chunk) [Financial Review](index=9&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) In H1 2025, the company saw increased revenue and gross profit, alongside higher selling and administrative expenses, decreased net finance income, and increased income tax expense, while maintaining a robust financial position and managing foreign exchange risks [Revenue](index=9&type=section&id=%E6%94%B6%E5%85%A5) In H1 2025, the company's revenue increased by 12.5% year-on-year, driven by both domestic and overseas sales - For the six months ended June 30, 2025, the company's revenue reached **RMB 9,018.3 million**, an increase of **12.5%** compared to the same period in 2024[24](index=24&type=chunk) - Domestic sales amounted to **RMB 5,200.6 million**, and overseas sales were **RMB 3,817.7 million**[24](index=24&type=chunk) [Gross Profit](index=9&type=section&id=%E6%AF%9B%E5%88%A9) Gross profit increased by 14.2% in H1 2025, with the overall gross profit margin rising to 32.8% due to lower raw material prices - Gross profit for H1 2025 was approximately **RMB 2,960.2 million**, an increase of **14.2%** compared to H1 2024[25](index=25&type=chunk) - The overall gross profit margin increased to **32.8%** (H1 2024: 32.3%), primarily due to relatively lower raw material prices during the reporting period[25](index=25&type=chunk) [Selling and Administrative Expenses](index=9&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Selling and administrative expenses increased by 17.0% in H1 2025, mainly due to higher sales commissions, R&D expenses, and labor costs - Selling and administrative expenses increased by **17.0%** from **RMB 1,142.3 million** in H1 2024 to **RMB 1,336.1 million** in H1 2025[26](index=26&type=chunk) - The increase was primarily due to higher sales commissions, research and development expenses, and labor costs, with R&D-related labor costs amounting to approximately **RMB 156.3 million** (H1 2024: RMB 134.5 million)[26](index=26&type=chunk) [Other Income](index=10&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Other income, primarily government subsidies, saw a slight 1% decrease in H1 2025 - Other income, mainly government subsidies, decreased by **1%** from **RMB 228.7 million** in H1 2024 to **RMB 227.3 million** in H1 2025[28](index=28&type=chunk) [Net Finance Income](index=10&type=section&id=%E8%9E%8D%E8%B3%87%E6%94%B6%E5%85%A5%E6%B7%A8%E9%A1%8D) Net finance income decreased in H1 2025 due to lower interest income, partially offset by reduced bank loan interest and a positive foreign exchange gain - Net finance income recorded **RMB 80.1 million** in H1 2025, a decrease from **RMB 98.9 million** in H1 2024[29](index=29&type=chunk) - The change was primarily due to a decrease in interest income (RMB 91.3 million vs RMB 136.2 million) and a reduction in bank loan interest and lease liability expenses (RMB 27.8 million vs RMB 35.6 million), as well as a positive net exchange gain (RMB 16.6 million vs loss of RMB 1.8 million)[29](index=29&type=chunk) [Income Tax Expense](index=10&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense increased by 10.9% in H1 2025, while the effective tax rate remained stable - Income tax expense increased by **10.9%** from **RMB 333.3 million** in H1 2024 to **RMB 369.5 million** in H1 2025[30](index=30&type=chunk) - The effective tax rate remained at a similar level of **17.7%** (H1 2024: 18.0%)[30](index=30&type=chunk) [Profit Attributable to Shareholders](index=10&type=section&id=%E8%82%A1%E6%9D%B1%E6%87%89%E4%BD%94%E7%B4%94%E5%88%A9) Profit attributable to shareholders increased by 12.6% in H1 2025, reaching RMB 1,711.5 million - Profit attributable to shareholders for the six months ended June 30, 2025, increased to **RMB 1,711.5 million**, a **12.6%** growth compared to H1 2024[31](index=31&type=chunk) [Liquidity, Financial Resources, Borrowings and Capital Gearing](index=10&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E3%80%81%E5%80%9F%E8%B2%B8%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B2%A0%E5%82%B5) The group maintains a robust financial position with substantial net cash and financial assets, despite a slight decrease in net cash position Liquidity and Financial Resources (RMB million) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and Cash Equivalents | 2,528.6 | 2,745.4 | | Time Deposits | 3,709.1 | 3,331.9 | | Restricted Cash | 46.8 | 52.8 | | Bank Borrowings | 2,340.5 | 2,011.3 | | Financial Assets at FVTPL | 6,979.3 | 6,971.5 | | Net Cash Position | 3,944.0 | 4,118.8 | - The Group's financial position remains robust, with a net cash position of **RMB 3,944.0 million**[33](index=33&type=chunk) - The floating annual interest rates for wealth management products ranged from **1.5% to 6.8%** (2024: 2.0% to 7.8%)[32](index=32&type=chunk) [Capital Expenditure](index=11&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) Capital expenditure increased in H1 2025, primarily allocated to land use rights, property, plant, and equipment - Capital expenditure for H1 2025 reached **RMB 632.6 million** (H1 2024: RMB 583.8 million), mainly for land use rights, additions to property, plant, and equipment[35](index=35&type=chunk) [Pledged Group Assets](index=11&type=section&id=%E6%8A%B5%E6%8A%BC%E9%9B%86%E5%9C%98%E8%B3%87%E7%94%A2) As of June 30, 2025, certain time deposits, bills receivables, and property, plant, and equipment were pledged as collateral for payables and bank facilities - As of June 30, 2025, time deposits of **RMB 740.0 million** and bills receivables of **RMB 233.0 million** were pledged as collateral for bills payable and borrowings[36](index=36&type=chunk) - Property, plant, and equipment with a net book value of **RMB 60.9 million** belonging to subsidiary Haitian (Vietnam) Machinery Co Ltd were pledged as collateral for a bank comprehensive credit facility of **RMB 143.2 million**[36](index=36&type=chunk) [Foreign Exchange Risk Management](index=11&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86) The Group's foreign exchange risk is limited as a significant portion of overseas sales are denominated in foreign currencies, while foreign currency procurement is minimal - During the reporting period, approximately **42.3%** of the Group's products were sold in overseas markets, with sales denominated in USD or other foreign currencies, while foreign currency procurement accounted for less than **10%** of total procurement[37](index=37&type=chunk) [Financial Guarantees](index=11&type=section&id=%E8%B2%A1%E5%8B%99%E6%93%94%E4%BF%9D) As of June 30, 2025, the Group provided financial guarantees to banks for credit facilities granted to customers, totaling RMB 418.0 million - As of June 30, 2025, the Group provided guarantees to banks for credit facilities granted to customers, totaling **RMB 418.0 million** (December 31, 2024: RMB 241.1 million)[38](index=38&type=chunk) [Contingent Liabilities](index=11&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[39](index=39&type=chunk) [Employees](index=11&type=section&id=%E5%83%B1%E5%93%A1) As of June 30, 2025, the Group employed approximately 8,320 individuals, primarily in mainland China, offering competitive compensation and fostering a learning culture - As of June 30, 2025, the Group employed a total of approximately **8,320 employees**, with the majority located in mainland China[40](index=40&type=chunk) - The company offers competitive remuneration packages and discretionary bonuses, is committed to fostering a learning culture, and currently has no share option scheme in place[40](index=40&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company and its Associated Corporations](index=12&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E4%B8%BB%E8%A6%81%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%96%BC%E6%9C%AC%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E7%9B%B8%E8%81%AF%E6%B3%95%E5%9C%98%E4%B9%8B%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E6%AC%8A%E8%AD%89%E4%B9%8B%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) This section details the long positions held by directors in the company's shares and related shares as of June 30, 2025 Directors' Long Positions in Shares and Underlying Shares of the Company (as of June 30, 2025) | Director Name | Capacity/Nature of Interest | Total Shares | Approximate Equity Percentage | | :--- | :--- | :--- | :--- | | Mr. Zhang Jianming | Corporate Interest (1) | 527,940,219 | 33.08% | | Mr. Zhang Jianming | Corporate Interest (2) | 3,723,000 | 0.23% | | Mr. Zhang Jianfeng | Corporate Interest (2) | 1,500,000 | 0.09% | | Mr. Liu Jianbo | Corporate Interest (2) | 540,000 | 0.03% | | Mr. Guo Mingguang | Corporate Interest (2) | 100,000 | 0.01% | | Mr. Guo Mingguang | Spouse's Interest (3) | 177,000 | 0.01% | | Mr. Chen Weiqun | Corporate Interest (2) | 250,000 | 0.02% | - Mr. Zhang Jianming indirectly holds company shares through **Premier Capital Management Pte. Ltd.** and **Cambridge Management Consultants (PTC) Ltd.**[44](index=44&type=chunk) - Other directors hold company shares through their wholly-owned investment holding companies[44](index=44&type=chunk) [Shareholders' Interests and Short Positions](index=13&type=section&id=%E8%82%A1%E6%9D%B1%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) This section outlines the long positions held by substantial shareholders in the company's shares and related shares as of June 30, 2025 Major Shareholders' Long Positions in Shares and Underlying Shares of the Company (as of June 30, 2025) | Shareholder Name | Capacity/Nature of Interest | Total Shares | Approximate Equity Percentage | | :--- | :--- | :--- | :--- | | Mr. Zhang Jingzhang | Corporate Interest (1) | 527,940,219 | 33.08% | | Mr. Zhang Jingzhang | Corporate Interest (2) | 493,000 | 0.03% | | Tianfu Capital Limited | Beneficial Owner | 433,888,453 | 27.18% | | Premier Capital Management Pte. Ltd. | Beneficial Owner | 292,818,000 | 18.35% | | Cambridge Management Consultants (PTC) Ltd. | Beneficial Owner | 235,122,219 | 14.73% | | UBS Trustees (B.V.I.) Limited | Trustee (3) | 433,888,453 | 27.18% | - Mr. Zhang Jingzhang indirectly holds company shares through **Premier Capital** and **Cambridge Management**, and indirectly holds shares held by **Fiery Force Inc.**[45](index=45&type=chunk) - **UBS Trustees (B.V.I.) Limited**, as trustee for several trusts, is deemed to have an interest in the shares held by **Tianfu Capital Limited**[46](index=46&type=chunk) [Other Information](index=14&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) [Material Investments, Acquisitions and Disposals](index=14&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) During the reporting period, the company held no material investments and did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures - The company held no material investments during the reporting period, and the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures[48](index=48&type=chunk) [Future Plans for Material Investments or Capital Assets and Expected Funding Sources](index=14&type=section&id=%E6%9C%89%E9%97%9C%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E6%88%96%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E5%8F%8A%E9%A0%90%E6%9C%9F%E8%B3%87%E9%87%91%E4%BE%86%E6%BA%90%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) As of June 30, 2025, the company had no specific future plans for material investments or capital assets - As of June 30, 2025, the company had no specific future plans regarding material investments or capital assets[49](index=49&type=chunk) [Compliance with Corporate Governance Code](index=14&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The company's Board of Directors is committed to maintaining high corporate governance standards and confirmed compliance with all applicable provisions of the Corporate Governance Code during the reporting period - The Board is committed to maintaining and ensuring high standards of corporate governance practices and has complied with all applicable code provisions of Part 2 of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules of the Stock Exchange[50](index=50&type=chunk) [Purchase, Sale or Redemption of Shares](index=14&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%E8%82%A1%E4%BB%BD) During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities, and no treasury shares were held as of June 30, 2025 - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the reporting period[51](index=51&type=chunk) - As of June 30, 2025, the company held no treasury shares[52](index=52&type=chunk) [Audit Committee](index=14&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, comprising three independent non-executive directors, reviewed the condensed consolidated interim financial information for H1 2025 and confirmed its compliance with applicable accounting principles - The Audit Committee, composed of three independent non-executive directors, is responsible for reviewing and overseeing the Group's financial reporting process and internal controls[53](index=53&type=chunk) - The Audit Committee has reviewed the Group's condensed consolidated interim financial information for the six months ended June 30, 2025, and confirmed compliance with applicable accounting principles, standards, and requirements[53](index=53&type=chunk) [Standard Code for Securities Transactions by Directors of the Company](index=14&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company has adopted the Standard Code for Securities Transactions by Directors and confirmed all directors' compliance during the reporting period - The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules, and specific inquiries confirmed all directors' compliance with the required standards during the reporting period[54](index=54&type=chunk) [Condensed Consolidated Financial Statements](index=15&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Condensed Consolidated Statement of Profit or Loss](index=15&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E6%90%8D%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company reported a 12.5% increase in revenue to RMB 9,018,279 thousand, with gross profit up 14.2% to RMB 2,960,180 thousand, and growth in both operating profit and profit attributable to shareholders, resulting in basic earnings per share of RMB 1.07 Condensed Consolidated Statement of Profit or Loss Summary (for the six months ended June 30, RMB thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 9,018,279 | 8,017,811 | | Cost of Sales | (6,058,099) | (5,426,194) | | Gross Profit | 2,960,180 | 2,591,617 | | Selling and Marketing Expenses | (743,977) | (645,948) | | General and Administrative Expenses | (592,090) | (496,314) | | Other Income | 227,331 | 228,680 | | Other Gains – Net | 132,015 | 72,814 | | Operating Profit | 1,983,459 | 1,750,849 | | Net Finance Income | 80,089 | 98,859 | | Share of Profit of Associates | 18,318 | 5,292 | | Profit Before Income Tax | 2,081,866 | 1,855,000 | | Income Tax Expense | (369,521) | (333,343) | | Profit for the Period | 1,712,345 | 1,521,657 | | Profit Attributable to Shareholders | 1,711,509 | 1,520,630 | | Basic Earnings Per Share (RMB) | 1.07 | 0.95 | [Condensed Consolidated Statement of Comprehensive Income](index=16&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company's profit for the period was RMB 1,712,345 thousand, with a significant positive impact from currency translation differences, leading to increased total comprehensive income Condensed Consolidated Statement of Comprehensive Income Summary (for the six months ended June 30, RMB thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the Period | 1,712,345 | 1,521,657 | | Currency Translation Differences | 144,231 | (89,041) | | Total Comprehensive Income for the Period | 1,856,576 | 1,432,616 | | Total Comprehensive Income Attributable to Shareholders | 1,855,740 | 1,431,589 | | Non-controlling Interests | 836 | 1,027 | - In H1 2025, currency translation differences shifted from a loss to a gain of **RMB 144,231 thousand**, significantly boosting total comprehensive income[58](index=58&type=chunk) [Condensed Consolidated Statement of Financial Position](index=17&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E8%A1%A8) As of June 30, 2025, total assets increased to RMB 33,668,216 thousand, with notable changes in non-current and current financial assets, and a shift in the composition of bank borrowings Condensed Consolidated Statement of Financial Position Summary (RMB thousand) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Property, Plant and Equipment | 7,180,924 | 6,611,640 | | Financial Assets at FVTPL (Non-current) | 3,773,268 | 2,365,634 | | Time Deposits (Non-current) | 820,859 | 2,051,307 | | Inventories | 4,717,297 | 4,576,322 | | Trade and Bills Receivables (Current) | 5,121,931 | 3,705,594 | | Financial Assets at FVTPL (Current) | 3,206,026 | 4,605,836 | | Cash and Cash Equivalents | 2,528,583 | 2,745,387 | | **Liabilities** | | | | Bank Borrowings (Non-current) | 224,927 | 2,011,287 | | Trade and Bills Payables | 5,714,732 | 4,576,533 | | Bank Borrowings (Current) | 2,115,609 | – | | **Equity** | | | | Total Equity | 21,649,531 | 20,869,475 | | Total Assets | 33,668,216 | 31,145,511 | | Net Current Assets | 8,024,944 | 9,812,829 | - Total assets increased from **RMB 31,145,511 thousand** at the end of 2024 to **RMB 33,668,216 thousand** as of June 30, 2025[60](index=60&type=chunk) - Non-current bank borrowings significantly decreased, while current bank borrowings increased from zero to **RMB 2,115,609 thousand**, indicating a shift in borrowing structure[61](index=61&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=19&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) For the six months ended June 30, 2025, total equity attributable to shareholders increased to RMB 21,626,077 thousand, driven by profit for the period and positive currency translation differences, partially offset by dividends paid Condensed Consolidated Statement of Changes in Equity Summary (for the six months ended June 30, RMB thousand) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Equity Attributable to Shareholders at Beginning of Period | 20,845,030 | 18,816,089 | | Profit for the Period | 1,711,509 | 1,520,630 | | Other Comprehensive Income (Currency Translation Differences) | 144,231 | (89,041) | | Total Comprehensive Income for the Period | 1,855,740 | 1,431,589 | | Dividends Paid – Attributable to Shareholders | (1,074,693) | (957,735) | | Dividends Paid to Non-controlling Interests | (1,827) | – | | Equity Attributable to Shareholders at End of Period | 21,626,077 | 19,289,943 | - In H1 2025, total equity attributable to shareholders increased from **RMB 20,845,030 thousand** at the beginning of the period to **RMB 21,626,077 thousand** at the end of the period[63](index=63&type=chunk) - Dividends paid to shareholders amounted to **RMB 1,074,693 thousand**, and dividends to non-controlling interests were **RMB 1,827 thousand**[63](index=63&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=20&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June 30, 2025, net cash from operating activities increased, while net cash outflows from investing and financing activities significantly decreased, leading to a substantial reduction in the net decrease in cash and cash equivalents Condensed Consolidated Statement of Cash Flows Summary (for the six months ended June 30, RMB thousand) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 1,402,439 | 1,205,412 | | Net Cash Used in Investing Activities | (861,359) | (2,682,786) | | Net Cash Used in Financing Activities | (757,884) | (1,588,480) | | Net Decrease in Cash and Cash Equivalents | (216,804) | (3,065,854) | | Cash and Cash Equivalents at Beginning of Period | 2,745,387 | 5,445,649 | | Cash and Cash Equivalents at End of Period | 2,528,583 | 2,379,795 | - Net cash generated from operating activities increased by **16.3% year-on-year** to **RMB 1,402,439 thousand**[64](index=64&type=chunk) - Net cash used in investing activities significantly decreased, primarily due to a reduction in net proceeds from the purchase of financial instruments[64](index=64&type=chunk) - Net cash used in financing activities substantially decreased, mainly due to a shift from net outflow to net inflow in bank borrowings[64](index=64&type=chunk) [Notes to the Condensed Consolidated Financial Information](index=21&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) [General Information](index=21&type=section&id=%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) Haitian International Holdings Limited and its subsidiaries primarily engage in the manufacturing and distribution of injection molding machines, with its ultimate controlling parties being Mr. Zhang Jingzhang and Mr. Zhang Jianming - The company and its subsidiaries are primarily engaged in the manufacturing and distribution of injection molding machines[66](index=66&type=chunk) - The company was incorporated in the Cayman Islands on July 13, 2006, and its shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on December 22, 2006[66](index=66&type=chunk)[67](index=67&type=chunk) - Mr. Zhang Jingzhang (former director of the company) and Mr. Zhang Jianming are the ultimate controlling parties of the company[66](index=66&type=chunk) [Basis of Preparation](index=21&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The condensed consolidated interim financial information for the six months ended June 30, 2025, has been prepared in accordance with HKAS 34 "Interim Financial Reporting" and should be read in conjunction with the annual financial statements for the year ended December 31, 2024 - The condensed consolidated interim financial information has been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[68](index=68&type=chunk) - The financial statements are presented in RMB and were approved for issue by the Board of Directors on August 18, 2025[67](index=67&type=chunk) [Accounting Policies](index=22&type=section&id=%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The accounting policies adopted for the condensed consolidated interim financial information are consistent with those used for the annual consolidated financial statements for the year ended December 31, 2024, with no material impact from newly adopted HKFRS amendments - The accounting policies adopted for the preparation of the condensed consolidated interim financial information are consistent with those adopted for the annual consolidated financial statements, except for the initial adoption of amended HKFRS accounting standards[70](index=70&type=chunk) - Hong Kong Accounting Standard 21 (Amendment) "Lack of Exchangeability" had no impact on the condensed consolidated interim financial information, as the Group's transaction and functional currencies are exchangeable[71](index=71&type=chunk) [Revenue and Segment Information](index=22&type=section&id=%E6%94%B6%E5%85%A5%E5%8F%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group operates in a single reportable segment, manufacturing and selling injection molding machines, with total sales of RMB 9,018,279 thousand in H1 2025, split between mainland China and overseas markets - The Group is primarily engaged in the manufacturing and sale of injection molding machines, with only one reportable segment[72](index=72&type=chunk) External Customer Sales by Region (for the six months ended June 30, RMB thousand) | Region | 2025 | 2024 | | :--- | :--- | :--- | | Mainland China | 5,200,565 | 5,182,546 | | Hong Kong and Overseas Countries | 3,817,714 | 2,835,265 | | Total | 9,018,279 | 8,017,811 | Total Non-current Assets by Region (RMB thousand) | Region | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Mainland China | 5,843,768 | 5,628,370 | | Hong Kong and Overseas Countries | 3,049,848 | 2,109,295 | [Operating Profit](index=24&type=section&id=%E7%B6%93%E7%87%9F%E5%88%A9%E6%BD%A4) In H1 2025, operating profit was influenced by increased depreciation, impairment provisions for trade receivables and inventories, and higher raw material costs, partially offset by net exchange gains and fair value gains on financial assets Key Items Affecting Operating Profit (for the six months ended June 30, RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Depreciation and Amortization | 238,516 | 215,522 | | Impairment Provision for Trade Receivables | 56,161 | 24,496 | | Inventory Write-down Provision / (Reversal) | 26,254 | (2,132) | | Raw Materials and Consumables Used | 5,163,219 | 4,705,886 | | Net Exchange (Gain) / Loss | (4,921) | 23,770 | | Fair Value Gain on Financial Assets at FVTPL | (103,105) | (81,250) | - In H1 2025, both impairment provisions for trade receivables and inventory write-down provisions increased[74](index=74&type=chunk) - Net exchange differences shifted from a loss in H1 2024 to a gain in H1 2025[74](index=74&type=chunk) [Net Finance Income](index=24&type=section&id=%E8%9E%8D%E8%B3%87%E6%94%B6%E5%85%A5%EF%BC%8D%E6%B7%A8%E9%A1%8D) Net finance income decreased in H1 2025 to RMB 80,089 thousand, primarily due to lower interest income, though partially offset by a positive net exchange gain Net Finance Income (for the six months ended June 30, RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interest Expense on Bank Loans | (25,264) | (35,428) | | Interest and Finance Charges on Lease Liabilities Paid / Payable | (2,491) | (135) | | Net Exchange Loss | – | (1,785) | | Interest Income from Restricted Bank Deposits, Time Deposits, Cash and Cash Equivalents, and Entrusted Loans | 91,270 | 136,207 | | Net Exchange Gain | 16,574 | – | | Net Finance Income | 80,089 | 98,859 | - Interest income decreased from **RMB 136,207 thousand** to **RMB 91,270 thousand**[75](index=75&type=chunk) - Net exchange differences shifted from a loss of **RMB 1,785 thousand** in H1 2024 to a gain of **RMB 16,574 thousand** in H1 2025[75](index=75&type=chunk) [Income Tax Expense](index=25&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense increased to RMB 369,521 thousand in H1 2025, driven by higher current income taxes in mainland China, Hong Kong, and overseas, while deferred tax was a credit Income Tax Expense (for the six months ended June 30, RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current Income Tax – Mainland China Corporate Income Tax and Hong Kong Profits Tax | 294,498 | 245,553 | | Current Income Tax – Overseas Income Tax | 80,109 | 60,429 | | Deferred Tax | (5,086) | 27,361 | | Total | 369,521 | 333,343 | - Current income tax (Mainland China and Hong Kong) and overseas income tax both increased[76](index=76&type=chunk) - Deferred tax shifted from an expense in H1 2024 to a credit in H1 2025[76](index=76&type=chunk) [Dividends](index=25&type=section&id=%E8%82%A1%E6%81%AF) The Board resolved not to declare an interim dividend for H1 2025, with potential distribution to be considered after reviewing the full-year results - At the Board meeting held on August 18, 2025, the directors resolved not to declare an interim dividend for the reporting period, with potential distribution to be considered after reviewing the full-year results[77](index=77&type=chunk) [Earnings Per Share](index=25&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic earnings per share for H1 2025 increased to RMB 1.07, with no diluted earnings per share presented due to the absence of dilutive ordinary shares - Basic earnings per share for the period were calculated based on profit attributable to shareholders of approximately **RMB 1,711,509,000** and the weighted average number of ordinary shares outstanding of **1,596,000,000** during the period[78](index=78&type=chunk) - Basic earnings per share were **RMB 1.07** (2024: RMB 0.95)[78](index=78&type=chunk) - Diluted earnings per share are not presented as there were no dilutive ordinary shares[78](index=78&type=chunk) [Capital Expenditure](index=25&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) Total capital expenditure for H1 2025 amounted to RMB 632,560 thousand, primarily for the acquisition of property, plant, and equipment Capital Expenditure (for the six months ended June 30, RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Land Use Rights | 292 | – | | Property, Plant and Equipment | 632,268 | 583,814 | | Total | 632,560 | 583,814 | - Total capital expenditure for H1 2025 was **RMB 632,560 thousand**, an increase compared to the same period last year[79](index=79&type=chunk) [Trade and Bills Receivables](index=26&type=section&id=%E6%87%89%E6%94%B6%E8%B2%A3%E6%98%93%E8%B3%87%E6%AC%BE%E5%8F%8A%E6%87%89%E6%94%B6%E7%A5%A8%E6%93%9A) As of June 30, 2025, total trade and bills receivables amounted to RMB 5,634,218 thousand, with the majority aged within one year, and an increase in impairment provisions - The Group grants credit periods to customers ranging from **15 to 36 months**[81](index=81&type=chunk) Ageing Analysis of Trade and Bills Receivables (RMB thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 year | 5,040,200 | 3,804,605 | | 1 to 2 years | 445,848 | 333,972 | | 2 to 3 years | 102,320 | 68,426 | | Over 3 years | 45,850 | 33,825 | | Total | 5,634,218 | 4,240,828 | | Less: Impairment Provision | (184,846) | (135,405) | | Net | 5,449,372 | 4,105,423 | - Impairment provision increased from **RMB 135,405 thousand** as of December 31, 2024, to **RMB 184,846 thousand** as of June 30, 2025[81](index=81&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=26&type=section&id=%E4%BB%A5%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E8%A8%88%E9%87%8F%E4%B8%94%E5%85%B6%E8%AE%8A%E5%8B%95%E8%A8%88%E5%85%A5%E6%90%8D%E7%9B%8A%E7%9A%84%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2) As of June 30, 2025, the Group held approximately RMB 6,979.3 million in financial assets at fair value through profit or loss, primarily wealth management products aimed at enhancing capital efficiency and investment returns - As of June 30, 2025, the Group held financial assets at fair value through profit or loss of approximately **RMB 6,979.3 million** (December 31, 2024: RMB 6,971.5 million)[82](index=82&type=chunk) - These financial assets include bank structured deposits, bank wealth management products, trust products, and fund products, with expected yields ranging from **1.5% to 6.8% per annum** (2024: 2.0% to 7.8%)[82](index=82&type=chunk) [Share Capital](index=27&type=section&id=%E8%82%A1%E6%9C%AC) As of June 30, 2025, the company's authorized share capital comprised 5,000,000 thousand ordinary shares, with 1,596,000 thousand ordinary shares issued and fully paid, amounting to RMB 160,510 thousand Share Capital Information (as of June 30, 2025) | Item | Number of Ordinary Shares (thousand) | HKD thousand | RMB thousand | | :--- | :--- | :--- | :--- | | Authorized Share Capital | 5,000,000 | 500,000 | 502,350 | | Issued and Fully Paid Share Capital | 1,596,000 | 159,600 | 160,510 | [Trade and Bills Payables](index=27&type=section&id=%E6%87%89%E4%BB%98%E8%B2%A3%E6%98%93%E8%B3%87%E6%AC%BE%E5%8F%8A%E6%87%89%E4%BB%98%E7%A5%A8%E6%93%9A) As of June 30, 2025, total trade and bills payables amounted to RMB 5,714,732 thousand, with the majority aged within one year Ageing Analysis of Trade and Bills Payables (RMB thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 year | 5,708,158 | 4,571,721 | | 1 to 2 years | 3,450 | 3,505 | | Over 2 years | 3,124 | 1,307 | | Total | 5,714,732 | 4,576,533 | - Total trade and bills payables increased from **RMB 4,576,533 thousand** as of December 31, 2024, to **RMB 5,714,732 thousand** as of June 30, 2025[84](index=84&type=chunk) [Capital Commitments](index=27&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of June 30, 2025, the company had capital commitments of RMB 461,102 thousand for the acquisition of property, plant, and equipment, contracted but not provided for Capital Commitments (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Capital Commitments for Acquisition of Property, Plant and Equipment – Contracted but not Provided For | 461,102 | 766,473 | - Capital commitments for the acquisition of property, plant, and equipment decreased compared to the end of 2024[85](index=85&type=chunk) [Related Party Transactions](index=28&type=section&id=%E9%97%9C%E8%81%AF%E4%BA%BA%E5%A3%AB%E4%BA%A4%E6%98%93) The Group engages in extensive transactions with related companies controlled by its directors, including procurement, sales, and services, with various outstanding balances at period-end [Related Party Transactions](index=30&type=section&id=%E9%97%9C%E8%81%AF%E4%BA%BA%E5%A3%AB%E4%BA%A4%E6%98%93) The Group conducted various related party transactions in H1 2025, primarily involving procurement of goods and services, and leasing activities Major Related Party Transactions (for the six months ended June 30, RMB thousand) | Transaction Type | 2025 | 2024 | | :--- | :--- | :--- | | Purchase of Goods from Related Companies | 769,178 | 729,423 | | Purchase of Equipment from Related Companies | 2,451 | 11,614 | | Right-of-Use Assets Arising from Lease of Buildings from Related Companies | 32,076 | – | | Purchase of Services from Related Companies | 2,215 | 2,001 | | Sale of Goods to Related Companies | 1,123 | 1,095 | | Provision of Services to Related Companies | 6,272 | 5,383 | | Rental Income from Related Companies | 7,355 | 7,025 | | Advances to Related Parties | 3,291 | 2,508 | | Sale of Equipment to Related Companies | 57 | 153 | - Procurement of goods from related companies such as **Ningbo Dongxin** and **Haitian Zhilian** constitutes a major type of related party transaction[89](index=89&type=chunk) - Right-of-use assets arising from the lease of buildings from related companies significantly increased in H1 2025[89](index=89&type=chunk) [Balances with Related Parties](index=33&type=section&id=%E8%88%87%E9%97%9C%E8%81%AF%E4%BA%BA%E5%A3%AB%E7%9A%84%E7%B5%90%E9%A4%98) Balances with related parties are unsecured, interest-free, and without fixed repayment terms, with a notable increase in lease liabilities from related companies in H1 2025 Significant Balances with Related Parties (RMB thousand) | Balance Type | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Payables for Purchase of Goods from Related Companies | 502,357 | 610,383 | | Payables for Purchase of Equipment from Related Companies | 21,455 | 7,315 | | Receivables for Sale of Goods and Provision of Services and Rental Income to Related Companies | 13,699 | 9,467 | | Prepayments for Purchase of Equipment from Related Companies | 1,197 | – | | Investment in an Entity Controlled by the Group's Directors (Haitian Zhizheng) | 99,800 | 99,800 | | Lease Liabilities for Lease of Buildings from Related Companies | 99,991 | – | - Balances with related parties are **unsecured, interest-free, and have no fixed repayment terms**[93](index=93&type=chunk) - Lease liabilities arising from the lease of buildings from related companies significantly increased in H1 2025[93](index=93&type=chunk) [Key Management Personnel Remuneration](index=35&type=section&id=%E4%B8%BB%E8%A6%81%E7%AE%A1%E7%90%86%E4%BA%BA%E5%93%A1%E9%85%AC%E9%87%91) Total remuneration for key management personnel increased in H1 2025, primarily due to a significant rise in discretionary bonuses Key Management Personnel Remuneration (for the six months ended June 30, RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Basic Salaries, Housing Allowances, Other Allowances and Benefits in Kind | 7,194 | 6,545 | | Contributions to Pension Schemes | 101 | 102 | | Discretionary Bonuses | 2,690 | 1,413 | | Total | 9,985 | 8,060 | - Total remuneration for key management personnel increased from **RMB 8,060 thousand** in H1 2024 to **RMB 9,985 thousand** in H1 2025, mainly due to a significant increase in discretionary bonuses[95](index=95&type=chunk) [Related Party Commitments](index=35&type=section&id=%E9%97%9C%E8%81%AF%E4%BA%BA%E5%A3%AB%E6%89%BF%E6%93%94) As of June 30, 2025, capital commitments for the acquisition of property, plant, and equipment from Haitian Precision amounted to RMB 16,335 thousand Related Party Capital Commitments (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Capital Commitments for Acquisition of Property, Plant and Equipment – Haitian Precision | 16,335 | 21,257 | - As of June 30, 2025, capital commitments for the acquisition of property, plant, and equipment related to **Haitian Precision** amounted to **RMB 16,335 thousand**[95](index=95&type=chunk)

FF301 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 致：香港交易及結算所有限公司 公司名稱: 海天國際控股有限公司 (於開曼群島註冊成立的有限公司) 呈交日期: 2025年9月1日 I. 法定/註冊股本變動 | 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) | 01882 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 5,000,000,000 | HKD | | 0.1 HKD | | 500,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | | | 本月底結存 | | | 5,000,000,000 | HKD | | 0.1 HKD | | 500,000,000 | 本月底 ...

Core Viewpoint - The company reported a revenue of 9.018 billion yuan for H1 2025, representing a year-on-year increase of 12.5%, and a net profit attributable to shareholders of 1.712 billion yuan, up 12.6% year-on-year [1] Industry Overview - The injection molding machine industry is experiencing growth driven by both industry prosperity and supply-demand dynamics, with a significant increase in exports due to domestic manufacturers accelerating overseas expansion [1] - The demand for injection molding machines is supported by their wide application in various sectors such as new energy vehicles, medical, and 3C electronics, leading to stable growth in demand [1] - In H1 2025, the export value of domestic injection molding machines increased by 29% year-on-year, with Southeast Asia showing a remarkable growth rate of 94%, accounting for 36% of total exports [1] - The global per capita plastic consumption is on the rise, with emerging markets having substantial room for growth due to lower consumption bases [1] Company Performance - The company achieved a gross margin of 32.8% in H1 2025, an increase of 0.5 percentage points year-on-year, and a net profit margin of 18.26%, remaining stable year-on-year [2] - Sales of complete injection molding machines increased by 12.1% year-on-year to 8.637 billion yuan, while parts and service sales grew by 21.0% to 381 million yuan [2] - The Mars and Jupiterr series of machines experienced rapid growth, driven by demand from overseas consumer goods and domestic new energy vehicles and home appliances [2] Competitive Positioning - As a leading player in the domestic injection molding machine industry, the company demonstrates significant competitive advantages, with core financial metrics outperforming peers [3] - The company’s high-performance electric injection molding machines, particularly the Changfei Ya series, are gaining traction globally, with over 30,000 units in use across approximately 60 countries [3] - The company is advancing its global strategy, establishing production capacities in India and Mexico, with new facilities in Japan and Serbia expected to commence operations in 2025 [3] - The company is enhancing its supply chain and implementing digital monitoring to reduce costs and improve efficiency, aligning with global demand [3]

Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company reported a revenue of 9.018 billion yuan for H1 2025, representing a year-on-year increase of 12.5%, and a net profit attributable to shareholders of 1.712 billion yuan, also up by 12.6% [2][6]. - The company's overseas market revenue grew by 34.65% year-on-year, with overseas revenue accounting for 42.3% of total revenue, up from 37.3% in 2024, indicating continuous global market share expansion [2][9]. - The company is accelerating its globalization strategy, implementing a "50-50 strategy" with new production capacities established in India and Mexico, and additional capacities planned in Japan and Serbia expected to commence production in 2025 [2][9]. Summary by Sections Company Performance - In H1 2025, the company achieved a revenue of 9.018 billion yuan, a 12.5% increase year-on-year, and a net profit of 1.712 billion yuan, reflecting a 12.6% growth [2][6]. - The gross margin for H1 2025 was 32.8%, up by 0.5 percentage points year-on-year, while the net profit margin remained stable at 18.26% [9]. Market Dynamics - The injection molding machine industry is experiencing a surge in demand due to the expansion of downstream manufacturers overseas and the release of potential in emerging markets [9]. - The export value of domestic injection molding machines increased by 29% year-on-year in H1 2025, with Southeast Asia showing a remarkable growth rate of 94% [9]. Competitive Position - The company is a leading player in the domestic injection molding machine industry, with significant competitive advantages reflected in its financial metrics [9]. - The company’s electric injection molding machines, particularly the Changfei series, are gaining traction globally, with over 30,000 units in use across approximately 60 countries [9].

Core Viewpoint - Haitian International has shown strong interim results with higher than expected overseas sales growth and stable domestic sales, prompting an upgrade to "Buy" and an increase in target price to HK$26.00 [1] Financial Performance - 1H2025 revenue reached RMB9,018 million, reflecting a sequential HoH increase of 11.2% [2] - The sales mix shifted slightly, with the Jupiter series showing sequential gains; revenue for Mars, Zhafir Electric, and Jupiter series was RMB5,171 million, RMB1,018 million, and RMB1,458 million, respectively, with sequential HoH increases of 10.5%, 11.9%, and 13.0% [2] - The average selling price (ASP) for the segments was RMB222k, RMB525k, and RMB1,734k, with sequential HoH changes of -1.7%, 2.8%, and 4.4% respectively, primarily due to product mix changes [3] - Sales volume increased sequentially to 26.3k, 2.0k, and 1.0k, representing increases of 12.4%, 8.8%, and 8.2% [3] - The gross profit margin for 1H2025 was 32.8%, a sequential HoH increase of 0.2 percentage points due to lower raw material costs [3] Overseas Sales - The company experienced strong overseas sales, totaling RMB3,818 million, with YoY growth of 34.7% and sequential HoH growth of 20% [4] - Revenue growth in the Southeast Asia (SEA) region was particularly robust at RMB1,783 million, showing YoY growth of 90.0% and sequential HoH growth of 27.2%, now accounting for 46.7% of the company's overseas revenue [5] Domestic Sales - Domestic sales remained stable at RMB5,201 million, with YoY growth of 0.3% and sequential HoH growth of 5.5%, supported by the development of downstream industries like NEVs [5] - The company supplies multiple NEV OEMs, including Xiaomi, Leapmotor, and XPeng [5] Future Outlook - Revenue forecasts for 2025-2027 have been increased to RMB17,949 million (+1.2%), RMB17,711 million (+0.1%), and RMB20,309 million (+1.0%) respectively [1] - Earnings per share forecasts for 2025, 2026, and 2027 are RMB2.127 (+2.6%), RMB2.032 (+1.4%), and RMB2.301 (+1.7%) respectively [1]

Group 1 - The company reported a stable revenue growth of 12.5% year-on-year for the first half of 2025, reaching 9.02 billion RMB, with a gross margin of 32.8%, slightly up by 0.5 percentage points, primarily due to lower raw material prices [1] - The net profit attributable to shareholders was 1.71 billion RMB, reflecting a year-on-year increase of 12.6%, maintaining a stable net profit margin of 19% despite a high base effect [1] Group 2 - Sales volume increased across all models, with a total of 29,438 units sold in the first half of 2025, representing an 8.8% year-on-year growth, and an average selling price of 293,000 RMB, up by 2.8% [2] - The main models, Jupiter and Mars, generated revenues of 1.67 billion RMB and 5.85 billion RMB respectively, with year-on-year growth rates of 14.6% and 13.2% [2] - Domestic revenue remained flat at 5.2 billion RMB due to structural slowdown in domestic demand, while overseas sales surged by 34.7% to 3.82 billion RMB, increasing its revenue share to 42.3% [2] Group 3 - The company is accelerating overseas expansion to mitigate uncertainties, with new factories in Japan, Serbia, and India expected to commence operations in the second half of 2025, and a Malaysian factory projected to be fully operational by 2026 [2] - The company is expected to see significant revenue growth in overseas markets starting in 2026, benefiting from a balanced global layout that can effectively smooth out the impacts of supply chain restructuring [2] Group 4 - The target price for the company's stock is set at 30 HKD, with a buy rating, supported by its competitive position in the injection molding machine sector and advantages in overseas capacity, sales, and service support [2] - Revenue projections for 2025-2027 are estimated at 18 billion, 19 billion, and 20.4 billion RMB respectively, with net profits of 3.4 billion, 3.6 billion, and 4 billion RMB [2]

Core Viewpoint - Company achieved steady growth in H1 2025, driven by global supply chain restructuring and accelerated development in certain downstream industries [1][2] Financial Performance - Revenue for H1 2025 reached 9.02 billion RMB, a year-on-year increase of 12.5% [1] - Net profit attributable to shareholders was 1.71 billion RMB, up 12.6% year-on-year [1] - Earnings per share stood at 1.07 RMB [1] - Gross margin for H1 2025 was 32.8%, an increase of 0.5 percentage points year-on-year [1] - Net profit margin remained stable at 19.0% [1] - Operating cash inflow was 1.4 billion RMB, reflecting a growth of 16.3% [1] Downstream Market Recovery - Injection molding machine sales generated 8.64 billion RMB in revenue, a 12.1% increase year-on-year [1] - Components and services revenue reached 0.38 billion RMB, growing by 21.0% [1] - Demand from the automotive and home appliance sectors is expected to benefit from the new policy promoting equipment upgrades [1] Overseas Market Performance - Domestic revenue was 5.20 billion RMB, a slight increase of 0.3% [2] - Overseas revenue surged to 3.82 billion RMB, marking a 34.7% year-on-year growth [2] - The company’s "Five-Five" overseas strategy is enhancing global delivery capabilities [2] - New factories in Japan, Serbia, and Chennai, India, are set to commence operations in H2 2025 [2] Future Outlook - The company maintains profit forecasts for 2025-2027 at 3.50 billion, 3.90 billion, and 4.26 billion RMB, reflecting year-on-year growth of 13.5%, 11.6%, and 9.3% respectively [2] - Corresponding EPS forecasts are 2.19, 2.45, and 2.67 RMB [2] - The company expects continued performance improvement driven by equipment upgrades and overseas exports [2]

Group 1: Circle Internet Group (CRCL US) - Circle maintains a "Buy" rating with a target price adjusted to $212.0, down from $305.3[1] - Q2 2025 revenue increased by 53% year-on-year to $658 million, driven by USDC issuance growth[1] - Net loss for Q2 2025 was $482 million, primarily due to $591 million in IPO-related expenses, but adjusted EBITDA rose by 52% to $126 million[1] - Projected revenue growth rates for 2025-2027 are 60.3%, 76.7%, and 69.5% respectively, with net profit growth rates of 88.9%, 102.5%, and 102.7%[1] - The stablecoin market is expected to reach $320 billion, $600 billion, and $1 trillion in 2025, 2026, and 2027 respectively[1] Group 2: Industry Position and Risks - Circle's competitive advantages include regulatory compliance, ecosystem neutrality, and technological leadership in cross-chain interoperability[1] - Catalysts for growth include the expansion of the stablecoin market, regulatory acceptance, and the growth of real-world assets (RWA)[1] - Risks involve tightening regulations, increased competition, and lower-than-expected penetration rates in the stablecoin market[1] Group 3: Haitian International (01882 HK) - Haitian International upgraded to "Buy" with a target price raised to HKD 26.00, citing attractive valuation and strong future earnings growth expectations[5] - The company reported strong mid-term results with overseas sales growth exceeding expectations, while domestic sales remained stable[5] - Projected earnings per share for 2025-2027 are RMB 2.13 (+2.6%), RMB 2.03 (+1.4%), and RMB 2.30 (+1.7%) respectively[5] - Overseas sales reached RMB 3.818 billion, a year-on-year increase of 34.7%, with Southeast Asia showing particularly strong growth of 90.0%[5]

Investment Rating - The report assigns a "Buy" rating with a target price of HKD 30.00, representing a potential upside of 37.6% from the current price of HKD 21.80 [1][3]. Core Insights - The company's resilience in global operations is highlighted, with a strong performance in both domestic and international markets. The report emphasizes the growth in sales across various models, driven by robust demand in the domestic new energy vehicle and home appliance sectors [2][5]. - The company is accelerating overseas expansion to mitigate uncertainties, with significant revenue growth from international markets, particularly in Southeast Asia, Europe, North America, and South America [5][6]. - Financial projections indicate steady revenue and profit growth, with expected revenues of RMB 17.98 billion, RMB 19.01 billion, and RMB 20.42 billion for 2025, 2026, and 2027 respectively, alongside net profits of RMB 3.37 billion, RMB 3.61 billion, and RMB 3.95 billion for the same years [4][6]. Financial Summary - Revenue for 2023 is projected at RMB 13.07 billion, with a year-over-year growth of 6.2%. This is expected to increase to RMB 16.13 billion in 2024, reflecting a 23.4% growth [4][7]. - The gross margin is expected to improve gradually from 32.1% in 2023 to 34.0% by 2027, indicating enhanced profitability [4][6]. - The earnings per share (EPS) is projected to rise from RMB 1.56 in 2023 to RMB 2.48 by 2027, showcasing a consistent upward trend [4][6]. Operational Performance - The company reported a solid performance in the first half of 2025, with revenues of RMB 90.2 billion, a year-over-year increase of 12.5%. The gross margin stood at 32.8%, slightly up from the previous year [5][6]. - Sales volume increased by 8.8% year-over-year, with an average selling price of RMB 293,000, reflecting a 2.8% increase [5][6]. - The company is expected to benefit from its global production capacity and service support, which will enhance its competitive edge in the injection molding machine sector [5][6].