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9月30日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: CHINA GAS INDUSTRY INVESTMENT HOLDINGS CO. LTD. 呈交日期: 2025年10月2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) | 01940 | 說明 | | | | | | | | | | 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 | USD | | 0.0001 USD | | 200,000 | | 增加 / 減少 (-) | | | | | | USD | | | | 本月底結存 | | | 2,000,000,000 | USD | | 0.0001 USD | | 20 ...

2025 INTERIM REPORT 中 期 報 告 CONTENTS 目錄 | 公司資料 | | | --- | --- | | Corporate Information | 2 | | 釋義 | | | Definitions | 5 | | 管理層討論及分析 | | | Management Discussion and Analysis | 7 | | 其他資料 | 21 | | Other Information | | | 中期簡明合併財務報表審閱報告 | | | Report on Review of Interim Condensed Consolidated Financial Statements | 29 | | 中期簡明合併綜合收益表 | | | Interim Condensed Consolidated Statement of Comprehensive Income | 31 | | 中期簡明合併財務狀況表 | | | Interim Condensed Consolidated Statement of Financial Position | 32 | | 中期簡明合併 ...

CHINA GAS INDUSTRY INVESTMENT HOLDINGS CO. LTD. CHINA GAS INDUSTRY INVESTMENT HOLDINGS CO. LTD. (the "Company") - Notice of publication of 2025 Interim Report (the "Current Corporate Communication") The English and Chinese versions of the Company's Current Corporate Communications are available on the Company's website at www.cgiihldgs.com and the website of The Stock Exchange of Hong Kong Limited at www.hkexnews.hk respectively (the "Website Version"). The Company recommends you to access the Website Versi ...

CHINA GAS INDUSTRY INVESTMENT HOLDINGS CO. LTD. (Incorporated in the Cayman Islands with members' limited liability) （於開曼群島註冊成立的成員有限公司） （Stock Code 股份代號：1940） NOTIFICATION LETTER 通知信函 Dear Registered Shareholders, 30 September 2025 CHINA GAS INDUSTRY INVESTMENT HOLDINGS CO. LTD. (the "Company") – Notice of publication of 2025 Interim Report (the "Current Corporate Communication") 如 閣下因任何理由無法以電子郵件方式收取或閱覽公司通訊的網站版本及欲索取本次公司通訊及日後公司通訊的印刷本，請填妥及簽署隨附之回條，並以已預付郵費的郵寄標 籤寄回本公司之香港股份過戶登記分處（「股份過戶登記分處」）卓佳證券登記有限公司 （地址為香港夏慤道16 ...

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: CHINA GAS INDUSTRY INVESTMENT HOLDINGS CO. LTD. 呈交日期: 2025年9月3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) | 01940 | 說明 | | | | | | | | | | 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 | USD | | 0.0001 USD | | 200,000 | | 增加 / 減少 (-) | | | | | | USD | | | | 本月底結存 | | | 2,000,000,000 | USD | | 0.0001 USD | | 200 ...

Group 1 - The company CGII Holdings (01940) reported interim results for the six months ending June 30, 2025, with revenue of 702 million RMB, representing a year-on-year increase of 9.54% [1] - Shareholders' profit attributable to the company was 74.6034 million RMB, showing a year-on-year increase of 44.05% [1] - Basic earnings per share were reported at 0.06 RMB [1]

Group 1 - The company CGII HLDGS (01940) reported interim results for the six months ending June 30, 2025, with revenue of 702 million RMB, representing a year-on-year increase of 9.54% [1] - Shareholders' profit attributable to the company was 74.6034 million RMB, showing a year-on-year increase of 44.05% [1] - Basic earnings per share were reported at 0.06 RMB [1]

Group 1 - The core viewpoint of the article is that CGII HLDGS (01940.HK) reported a revenue increase of approximately 9.54% year-on-year for the six months ending June 30, 2025, amounting to around RMB 702 million [1] - The gross profit for the same period was approximately RMB 168 million, reflecting a year-on-year increase of about 1.99% [1] - The net profit reached approximately RMB 74.6 million, showing a significant year-on-year increase of 44.05%, with basic and diluted earnings per share at around RMB 0.06 [1]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company's financial performance for the six months ended June 30, 2025, shows significant growth in net profit and earnings per share, alongside an improved gearing ratio | Metric | For the Six Months Ended June 30, 2025 (RMB million) | For the Six Months Ended June 30, 2024 (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Revenue | 701.86 | 640.75 | +9.54% | | Gross Profit | 168.44 | 165.16 | +1.99% | | Net Profit | 74.60 | 51.79 | +44.05% | | Basic and Diluted Earnings Per Share | 0.06 | 0.04 | +50.00% | | Gearing Ratio (Period-end) | 23.0% | 28.2% (December 31, 2024) | -5.2% | - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: **nil**)[3](index=3&type=chunk) [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents the company's interim condensed consolidated financial statements, including the statement of comprehensive income and statement of financial position, highlighting key financial performance and position changes [Interim Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the company achieved growth in revenue and operating profit, with a significant year-on-year increase in net profit, driven by revenue growth, reduced administrative expenses, and the absence of impairment losses on property, plant, and equipment from the prior period | Metric | For the Six Months Ended June 30, 2025 (RMB) | For the Six Months Ended June 30, 2024 (RMB) | Change Rate | | :--- | :--- | :--- | :--- | | Revenue | 701,859,449 | 640,754,255 | +9.54% | | Gross Profit | 168,442,656 | 165,162,160 | +1.99% | | Operating Profit | 106,512,924 | 73,518,279 | +44.88% | | Profit Before Income Tax | 97,977,005 | 64,157,300 | +52.72% | | Profit for the Period Attributable to Owners of the Company | 74,603,401 | 51,791,438 | +44.05% | | Earnings Per Share - Basic and Diluted | 0.06 | 0.04 | +50.00% | - Impairment loss on property, plant and equipment: **RMB 0** in 2025, compared to **RMB 37,891,436** in 2024[4](index=4&type=chunk) [Interim Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets slightly increased, non-current liabilities significantly decreased, leading to growth in net assets and total equity, optimizing the asset-liability structure | Metric | June 30, 2025 (RMB) | December 31, 2024 (RMB) | Change Rate | | :--- | :--- | :--- | :--- | | Non-current Assets | 1,620,101,964 | 1,603,834,405 | +1.01% | | Current Assets | 864,457,303 | 839,314,342 | +3.00% | | Current Liabilities | 605,932,561 | 546,678,507 | +10.84% | | Non-current Liabilities | 159,436,558 | 252,566,014 | -36.87% | | Total Equity | 1,719,190,148 | 1,643,904,226 | +4.58% | - Trade receivables increased from **RMB 532,766,201** as of December 31, 2024, to **RMB 580,407,416** as of June 30, 2025[5](index=5&type=chunk) - Non-current borrowings significantly decreased from **RMB 200,108,017** as of December 31, 2024, to **RMB 96,750,607** as of June 30, 2025[6](index=6&type=chunk) [Notes to the Interim Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the interim condensed consolidated financial statements, covering general information, basis of preparation, accounting policies, revenue and segment information, other income and expenses, income tax, dividends, earnings per share, and balance sheet items [General Information and Basis of Preparation](index=5&type=section&id=General%20Information%20and%20Basis%20of%20Preparation) The Group primarily engages in industrial gas production and supply in China, with unaudited interim financial information prepared in accordance with IAS 34 and the Listing Rules, adopting new amendments to IAS 21 without significant impact [1. General Information](index=5&type=section&id=1.%20General%20Information) The company is registered in the Cayman Islands, primarily engaged in investment holding, with its subsidiaries mainly involved in industrial gas production and supply in China, and its interim financial information is presented in RMB and has been reviewed but not audited - Company's place of incorporation: **Cayman Islands**[7](index=7&type=chunk) - Principal business: Investment holding, with the Group primarily engaged in the production and supply of industrial gases and related services in **Mainland China**[7](index=7&type=chunk) - Financial information status: **Reviewed, not audited**[8](index=8&type=chunk) [2. Basis of Preparation](index=5&type=section&id=2.%20Basis%20of%20Preparation) The interim financial information is prepared in accordance with IAS 34 and the Listing Rules, with management's judgments, estimates, and assumptions consistent with the prior year's consolidated financial statements, and should be read in conjunction with the annual statements - Basis of preparation: **International Accounting Standard 34 "Interim Financial Reporting"** and the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[9](index=9&type=chunk) - Management judgments and estimates: Consistent with those applied in the consolidated financial statements for the year ended **December 31, 2024**[9](index=9&type=chunk) [3. Accounting Policies](index=5&type=section&id=3.%20Accounting%20Policies) The accounting policies used for this interim financial information are consistent with the prior year, with only new and amended IFRSs adopted, and amendments to IAS 21 having no significant impact - Accounting policies: Consistent with those used in the preparation of the annual financial statements for the year ended **December 31, 2024**[10](index=10&type=chunk) - Newly adopted standard: Amendments to **IAS 21 "Lack of Exchangeability"**, which the directors concluded would not have any significant impact upon application[11](index=11&type=chunk) [4. Revenue and Segment Information](index=6&type=section&id=4.%20Revenue%20and%20Segment%20Information) The Group operates three main segments: supply of industrial gases, liquefied natural gas and gas transmission services, and technical support and management services, with revenue primarily derived from Mainland China and highly concentrated on a single major customer [4.(i) Operating Segments](index=6&type=section&id=4.(i)%20Operating%20Segments) The Group's chief operating decision maker assesses business performance from a product and service perspective, identifying three operating segments: supply of industrial gases, liquefied natural gas and gas transmission services, and technical support and management services - Operating segments: **Supply of industrial gases (piped and liquefied)**, **liquefied natural gas and gas transmission services**, and **technical support and management services**[12](index=12&type=chunk)[13](index=13&type=chunk) | Segment | For the Six Months Ended June 30, 2025 Segment Profit (RMB) | For the Six Months Ended June 30, 2024 Segment Profit (RMB) | | :--- | :--- | :--- | | Supply of Industrial Gases | 156,841,357 | 161,058,615 | | Liquefied Natural Gas and Gas Transmission Services | 6,111,289 | 791,704 | | Technical Support and Management Services | 5,490,010 | 3,311,841 | | **Total** | **168,442,656** | **165,162,160** | [4.(ii) Geographical Information](index=7&type=section&id=4.(ii)%20Geographical%20Information) All of the Group's revenue is derived from Mainland China, thus no geographical information for total revenue is presented - Revenue source: The Group primarily operates its business in **Mainland China**, and its revenue is derived from Mainland China[15](index=15&type=chunk) [4.(iii) Information on Major Customers](index=7&type=section&id=4.(iii)%20Information%20on%20Major%20Customers) For the six months ended June 30, 2025, Customer A contributed over 75% of the Group's revenue, indicating a high reliance on a single customer | Customer | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Customer A | 527,644,509 | 523,944,975 | [4.(iv) Revenue](index=7&type=section&id=4.(iv)%20Revenue) The Group's revenue primarily comes from the supply of piped industrial gases, followed by liquefied natural gas and gas transmission services, while revenue from the supply of liquefied industrial gases has decreased | Revenue Category | For the Six Months Ended June 30, 2025 (RMB) | For the Six Months Ended June 30, 2024 (RMB) | Change Rate | | :--- | :--- | :--- | :--- | | Supply of Piped Industrial Gases | 512,590,082 | 462,324,549 | +10.87% | | Supply of Liquefied Industrial Gases | 62,688,500 | 82,397,763 | -23.92% | | Supply of Liquefied Natural Gas and Gas Transmission Services | 112,866,597 | 83,712,633 | +34.83% | | Technical Support and Management Services | 8,549,682 | 7,030,115 | +21.62% | | Others | 5,164,588 | 5,289,195 | -2.35% | | **Total** | **701,859,449** | **640,754,255** | **+9.54%** | - Timing of revenue recognition: All of the Group's revenue is recognized at a point in time, except for gas transmission services and technical support and management services, which are recognized **over time**[20](index=20&type=chunk) [4.(v) Contract Liabilities](index=8&type=section&id=4.(v)%20Contract%20Liabilities) As of June 30, 2025, the Group's total contract liabilities increased to approximately RMB 19.09 million, primarily from the supply of liquefied industrial gases and liquefied natural gas, with revenue recognized from contract liabilities carried forward from the beginning of the period significantly increasing year-on-year | Category | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Supply of Liquefied Industrial Gases | 10,505,232 | 6,436,111 | | Supply of Liquefied Natural Gas | 8,264,526 | 8,652,679 | | Others | 320,319 | 537,751 | | **Total** | **19,090,077** | **15,626,541** | | Category | For the Six Months Ended June 30, 2025 (RMB) | For the Six Months Ended June 30, 2024 (RMB) | | :--- | :--- | :--- | | Supply of Liquefied Industrial Gases | 2,028,365 | 2,424,978 | | Supply of Liquefied Natural Gas | 7,498,361 | 1,720,647 | | Others | – | 522,497 | | **Total** | **9,526,726** | **4,668,122** | [Other Income and Expenses](index=9&type=section&id=Other%20Income%20and%20Expenses) During the reporting period, the Group's other income significantly increased, net other losses substantially decreased, and net finance costs also declined, reflecting increased scrap sales, VAT reversals, and reduced foreign exchange losses and borrowing interest expenses [5. Other Income](index=9&type=section&id=5.%20Other%20Income) The Group's other income significantly increased by over 56% year-on-year, primarily due to increased scrap sales revenue and the reversal of excess VAT provisions | Category | For the Six Months Ended June 30, 2025 (RMB) | For the Six Months Ended June 30, 2024 (RMB) | Change Rate | | :--- | :--- | :--- | :--- | | Government Grants | 2,683,740 | 2,825,522 | -5.02% | | Others | 3,750,237 | 1,285,665 | +191.71% | | **Total** | **6,433,977** | **4,111,187** | **+56.49%** | - The increase in other income was primarily due to increased proceeds from the sale of scrap materials (**RMB 2,105,949** in 2025 vs. **RMB 1,077,089** in 2024) and the reversal of excess VAT provisions (**RMB 1,622,629** in 2025 vs. **RMB 0** in 2024)[26](index=26&type=chunk) [6. Other (Losses)/Gains - Net](index=9&type=section&id=6.%20Other%20(Losses)%2FGains%20-%20Net) The Group's net other losses significantly decreased year-on-year, primarily due to a substantial reduction in net foreign exchange losses | Category | For the Six Months Ended June 30, 2025 (RMB) | For the Six Months Ended June 30, 2024 (RMB) | Change Rate | | :--- | :--- | :--- | :--- | | Net Exchange Loss | (1,575) | (1,157,908) | -99.86% | | Others | (60,000) | (77,897) | -22.97% | | **Total** | **(61,575)** | **(1,235,805)** | **-95.01%** | [7. Finance Costs - Net](index=9&type=section&id=7.%20Finance%20Costs%20-%20Net) The Group's net finance costs decreased by approximately 8.76% year-on-year, primarily due to a reduction in interest expense on bank borrowings and an increase in capitalized amounts | Category | For the Six Months Ended June 30, 2025 (RMB) | For the Six Months Ended June 30, 2024 (RMB) | Change Rate | | :--- | :--- | :--- | :--- | | Finance Income: Interest income from bank deposits | 727,599 | 914,037 | -20.40% | | Finance Costs: Interest expense on bank borrowings | (10,467,000) | (12,508,500) | -16.32% | | **Finance Costs - Net** | **(8,535,919)** | **(9,360,979)** | **-8.76%** | - Capitalized amount: **RMB 1,265,000** in 2025, compared to **RMB 2,330,480** in 2024[25](index=25&type=chunk) - Average annual capitalization rate: **3.78%** in 2025, compared to **4.69%** in 2024[25](index=25&type=chunk) [8. Details of Operating Expenses](index=10&type=section&id=8.%20Details%20of%20Operating%20Expenses) During the reporting period, the Group experienced increased consumption of electricity and utilities, raw materials, and equipment maintenance expenses, while depreciation, employee benefits, and transportation expenses slightly decreased | Category | For the Six Months Ended June 30, 2025 (RMB) | For the Six Months Ended June 30, 2024 (RMB) | Change Rate | | :--- | :--- | :--- | :--- | | Auditor's Remuneration | 750,000 | 900,000 | -16.67% | | Consumption of electricity and utilities | 402,151,626 | 362,441,557 | +10.96% | | Consumption of raw materials and low-value consumables | 62,767,218 | 38,578,698 | +62.70% | | Depreciation of property, plant and equipment | 58,021,118 | 65,087,470 | -10.86% | | Employee benefit expenses | 28,179,287 | 28,622,247 | -1.55% | | Equipment maintenance expenses | 18,362,910 | 13,344,598 | +37.61% | | Professional service fees | 2,349,255 | 802,535 | +192.75% | [9. Income Tax Expense](index=10&type=section&id=9.%20Income%20Tax%20Expense) The Group's income tax expense significantly increased by nearly 89% year-on-year, primarily due to higher profit before tax, while benefiting from preferential tax rates for high-tech enterprises, super deduction for R&D expenses, and tax incentives for self-produced industrial hydrogen revenue [9.(b) China Corporate Income Tax](index=11&type=section&id=9.(b)%20China%20Corporate%20Income%20Tax) The Group's operations in Mainland China are subject to corporate income tax at a statutory rate of 25%, with Tangshan Tanggang Gas Co., Ltd. and Luannan Tanggang Gas Co., Ltd. enjoying a preferential rate of 15% as high-tech enterprises - General China corporate income tax rate: **25%**[29](index=29&type=chunk) - Preferential tax rate for high-tech enterprises: Tangshan Tanggang Gas Co., Ltd. and Luannan Tanggang Gas Co., Ltd. are recognized as high-tech enterprises in China and enjoy a preferential income tax rate of **15%**[29](index=29&type=chunk) [9.(c) China Withholding Tax](index=11&type=section&id=9.(c)%20China%20Withholding%20Tax) The company has recognized deferred tax liabilities for the undistributed profits of its Chinese subsidiaries, as Chinese law mandates a 10% withholding income tax on dividends distributed to foreign investors - Withholding income tax rate: **10%** (applicable to profits generated after January 1, 2008)[30](index=30&type=chunk) - Deferred tax liabilities: The company has recognized deferred tax liabilities for the undistributed profits of its **Chinese subsidiaries**[30](index=30&type=chunk) [9.(d) Super Deduction for Research and Development Expenses](index=11&type=section&id=9.(d)%20Super%20Deduction%20for%20Research%20and%20Development%20Expenses) Chinese tax law allows enterprises engaged in R&D activities to deduct 200% of their R&D expenses when calculating taxable profits, providing a tax incentive for the Group - Super deduction ratio for R&D expenses: Enterprises engaged in R&D activities are entitled to claim **200%** of their R&D expenses as deductible expenses when determining their taxable profits for the period (effective from March 2023)[31](index=31&type=chunk) [9.(e) Tax Exempt Income](index=11&type=section&id=9.(e)%20Tax%20Exempt%20Income) The Group's subsidiaries in Mainland China are entitled to deduct 10% of the revenue generated from supplying self-produced industrial hydrogen when calculating their taxable profits - Tax incentive: The Group's subsidiaries in Mainland China are entitled to deduct **10%** of the revenue generated from supplying self-produced industrial hydrogen when determining their taxable profits for the period[32](index=32&type=chunk) [Dividends and Earnings Per Share](index=11&type=section&id=Dividends%20and%20Earnings%20Per%20Share) The Board does not recommend an interim dividend, while basic and diluted earnings per share increased due to higher profit for the period, with basic and diluted earnings being the same due to the absence of potential dilutive ordinary shares [10. Dividends](index=11&type=section&id=10.%20Dividends) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025, consistent with the prior year - Interim dividend: The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: **nil**)[33](index=33&type=chunk) [11. Earnings Per Share](index=12&type=section&id=11.%20Earnings%20Per%20Share) For the six months ended June 30, 2025, the profit attributable to owners of the company increased, raising basic and diluted earnings per share from RMB 0.04 to RMB 0.06, with basic and diluted earnings being consistent due to no potential dilutive ordinary shares | Metric | For the Six Months Ended June 30, 2025 (RMB) | For the Six Months Ended June 30, 2024 (RMB) | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company | 74,603,401 | 51,791,438 | | Weighted average number of ordinary shares | 1,200,000,000 | 1,200,000,000 | | Earnings per share - Basic and Diluted | 0.06 | 0.04 | - Diluted earnings: As there were no potential dilutive ordinary shares for the Group for the six months ended June 30, 2025 and 2024, the diluted earnings per share were the **same as the basic earnings per share**[35](index=35&type=chunk) [Notes to Statement of Financial Position Items](index=12&type=section&id=Notes%20to%20Statement%20of%20Financial%20Position%20Items) This section details the period-end balances and changes for property, plant and equipment, right-of-use assets, trade receivables, deposits, prepayments, cash and cash equivalents, and trade and other payables, including impairment provisions and ageing analysis [12. Property, Plant and Equipment](index=12&type=section&id=12.%20Property%2C%20Plant%20and%20Equipment) During the reporting period, the Group's total cost of acquiring property, plant and equipment increased, with no impairment provision recognized, contrasting with the prior period's impairment due to obsolescence and operating losses - Total cost of acquiring property, plant and equipment: **RMB 114,656,839** for the six months ended June 30, 2025 (for the six months ended June 30, 2024: **RMB 69,835,731**)[36](index=36&type=chunk) - Impairment provision: No impairment provision was recognized for property, plant and equipment for the six months ended June 30, 2025 (for the six months ended June 30, 2024: impairment provision of **RMB 37,891,436** was recognized)[37](index=37&type=chunk)[38](index=38&type=chunk) [13. Right-of-Use Assets and Lease Liabilities](index=13&type=section&id=13.%20Right-of-Use%20Assets%20and%20Lease%20Liabilities) During the reporting period, the Group recognized no new right-of-use assets and lease liabilities, and the total lease liabilities decreased, reflecting the impact of lease payments and foreign exchange rate adjustments - New right-of-use assets and lease liabilities: The Group recognized no additions to right-of-use assets and lease liabilities for the six months ended June 30, 2025 (for the six months ended June 30, 2024: **RMB nil**)[39](index=39&type=chunk) - Total lease liabilities: **RMB 2,963,073** as of June 30, 2025, compared to **RMB 3,382,628** as of December 31, 2024[40](index=40&type=chunk) [14. Trade Receivables](index=13&type=section&id=14.%20Trade%20Receivables) As of June 30, 2025, the Group's total trade receivables increased, with a corresponding increase in credit loss provisions, primarily concentrated in receivables aged within 6 months, but credit risk for major customers is assessed as not significant | Metric | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Trade receivables | 619,095,985 | 559,343,393 | | Less: Provision for impairment loss | (38,688,569) | (26,577,192) | | **Net** | **580,407,416** | **532,766,201** | | Ageing | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Up to 6 months | 437,716,216 | 419,184,161 | | 6 months to 1 year | 120,915,240 | 103,468,956 | | 1 to 2 years | 21,020,635 | 9,154,401 | | Over 2 years | 755,325 | 958,683 | - Major customers: As of June 30, 2025, approximately **96%** of the Group's trade receivables were due from HBIS Group and its member companies (December 31, 2024: approximately **89%**)[72](index=72&type=chunk) [15. Deposits, Prepayments and Other Receivables](index=14&type=section&id=15.%20Deposits%2C%20Prepayments%20and%20Other%20Receivables) As of June 30, 2025, the Group's total deposits, prepayments, and other receivables slightly decreased, primarily due to a reduction in other recoverable taxes and prepayments for utilities and others | Category | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Other recoverable taxes | 8,696,521 | 9,131,493 | | Amounts due from related parties | 40,168 | 40,880 | | Utilities and other prepayments | 6,691,020 | 8,498,799 | | Deposits | 2,264,946 | 2,268,216 | | Others | 687,046 | 687,046 | | **Total** | **18,379,701** | **20,626,434** | [16. Cash and Cash Equivalents](index=15&type=section&id=16.%20Cash%20and%20Cash%20Equivalents) As of June 30, 2025, the Group's total cash and cash equivalents slightly increased, primarily denominated in RMB | Category | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | RMB | 186,047,881 | 175,994,663 | | USD | 4,825,874 | 4,835,385 | | HKD | 2,967,645 | 3,054,705 | | **Total** | **193,841,400** | **183,884,753** | [17. Trade and Other Payables](index=15&type=section&id=17.%20Trade%20and%20Other%20Payables) As of June 30, 2025, the Group's total trade and other payables increased, with trade payables and payables for construction and equipment being the main components | Category | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Trade payables | 145,033,197 | 133,656,822 | | Payables for construction and equipment | 62,264,953 | 52,025,173 | | Dividends payable | 49,788,758 | 50,671,500 | | Operating service fees payable | 41,278 | 10,054,109 | | Other taxes payable | 4,046,436 | 3,759,179 | | Salaries payable | 3,447,590 | 2,184,062 | | Professional service fees payable | 1,009,399 | 1,455,881 | | Deposits | 6,238,655 | 8,254,812 | | Others | 6,904,307 | 4,424,536 | | **Total** | **278,774,573** | **266,486,074** | | Ageing | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Less than 1 year | 110,495,934 | 97,898,555 | | 1 to 2 years | 8,333,050 | 9,065,552 | | 2 to 3 years | 18,429,870 | 18,673,002 | | Over 3 years | 7,774,343 | 8,019,713 | [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's discussion and analysis of the Group's business performance, financial review, liquidity, financial resources, funding, and risk management for the reporting period [Business Review](index=17&type=section&id=Business%20Review) During the reporting period, the Group's total industrial gas business volume and liquefied natural gas and gas transmission services revenue both increased, despite challenges from declining crude steel production in China affecting major customer demand, maintaining overall revenue growth through diversified products and optimized capacity utilization [Overall Business Performance](index=17&type=section&id=Overall%20Business%20Performance) Despite a year-on-year decrease in China's crude steel output, the Group achieved total revenue of approximately RMB 701.86 million in the first half of 2025, with growth in total industrial gas business, liquefied natural gas and gas transmission services revenue, and technical support and management services revenue - China's GDP growth: China's gross domestic product in the first half of 2025 was approximately **RMB 66,053.6 billion**, representing a year-on-year increase of approximately **5.3%**[46](index=46&type=chunk) - China's crude steel output: Approximately **515 million tonnes** in the first half of 2025, a year-on-year decrease of **3.0%**[46](index=46&type=chunk) - Group's total revenue: Approximately **RMB 701.86 million** in the first half of 2025[46](index=46&type=chunk) - Business growth: Total piped and liquefied industrial gas business volume increased by **5.53%** year-on-year, revenue from liquefied natural gas products and pipeline transmission services at Luannan plant increased by **34.83%**, and technical support and management services increased by **21.62%**[46](index=46&type=chunk) [Supply of Piped Industrial Gases](index=17&type=section&id=Supply%20of%20Piped%20Industrial%20Gases) The Group ensures convenient and efficient supply of piped industrial gases through its plants located near customer production facilities, currently operating two such plants - Supply model: The Group's piped industrial gases are delivered to customers via pipelines, with production facilities located at or near **customer production facilities**[47](index=47&type=chunk) - Operating plants: Tanggang Gas Laoting Branch Plant and Tanggang Gas New Area Plant[47](index=47&type=chunk) [Supply of Liquefied Industrial Gases](index=17&type=section&id=Supply%20of%20Liquefied%20Industrial%20Gases) To maximize capacity utilization and increase revenue, the Group produces and sells liquefied industrial gases, including oxygen, nitrogen, argon, and carbon dioxide, using air separation and liquefaction units - Product types: Liquefied industrial gas products include **oxygen, nitrogen, argon, and carbon dioxide**[48](index=48&type=chunk) - Production strategy: Utilizing the remaining design capacity of air separation units to produce and sell liquefied nitrogen to maximize the utilization of **air separation units**[48](index=48&type=chunk) [Provision of Technical Support and Management Services](index=18&type=section&id=Provision%20of%20Technical%20Support%20and%20Management%20Services) The Group provides comprehensive technical support and management services, covering organizational planning, equipment maintenance, safety management, and personnel management for industrial gas production and supply - Service content: Management of organization and planning, equipment inspection, equipment maintenance, routine maintenance, safety, labor, and personnel related to the production and supply of **industrial gas products**[49](index=49&type=chunk) [Supply of Liquefied Natural Gas and Gas Transmission Services](index=18&type=section&id=Supply%20of%20Liquefied%20Natural%20Gas%20and%20Gas%20Transmission%20Services) The Group's liquefied natural gas related businesses include LNG supply and coke oven gas boosting and transmission services, primarily produced and provided by the Luannan plant - Business scope: **Liquefied natural gas supply** and provision of gas transmission services (coke oven gas boosting and transmission services)[50](index=50&type=chunk) - Production base: The Group's Luannan plant produces **liquefied natural gas**[50](index=50&type=chunk) [Revenue and Gross Profit by Business Segment](index=18&type=section&id=Revenue%20and%20Gross%20Profit%20by%20Business%20Segment) During the reporting period, technical support and management services achieved the highest gross profit margin, liquefied natural gas and gas transmission services saw a significant increase in gross profit margin, while the gross profit margin for the supply of industrial gases (piped and liquefied) slightly decreased | Business Segment | For the Six Months Ended June 30, 2025 Revenue (RMB) | For the Six Months Ended June 30, 2025 Gross Profit (RMB) | For the Six Months Ended June 30, 2025 Gross Profit Margin | For the Six Months Ended June 30, 2024 Revenue (RMB) | For the Six Months Ended June 30, 2024 Gross Profit (RMB) | For the Six Months Ended June 30, 2024 Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Supply of Industrial Gases (Piped and Liquefied) | 580,443,170 | 156,841,357 | 27.02% | 550,011,507 | 161,058,615 | 29.28% | | Liquefied Natural Gas and Gas Transmission Services | 112,866,597 | 6,111,289 | 5.41% | 83,712,633 | 791,704 | 0.95% | | Technical Support and Management Services | 8,549,682 | 5,490,010 | 64.21% | 7,030,115 | 3,311,841 | 47.11% | | **The Group** | **701,859,449** | **168,442,656** | **24.00%** | **640,754,255** | **165,162,160** | **25.78%** | [Group Business Volume](index=18&type=section&id=Group%20Business%20Volume) In the first half of 2025, the Group's piped industrial gas sales volume and revenue both increased, and liquefied natural gas and gas transmission services revenue significantly rose, but liquefied industrial gas sales volume and revenue decreased - Piped industrial gas sales: Approximately **1,935.36 million standard cubic meters** (revenue approximately **RMB 511.84 million**) in the first half of 2025, compared to approximately **1,784.70 million standard cubic meters** (revenue approximately **RMB 462.32 million**) in the same period of 2024[52](index=52&type=chunk) - Liquefied industrial gas sales: A total of approximately **97,129 tonnes** (revenue approximately **RMB 63.44 million**) in the first half of 2025, compared to approximately **133,745 tonnes** (revenue approximately **RMB 82.40 million**) in the same period of 2024[52](index=52&type=chunk) - Liquefied natural gas and gas transmission services revenue: Approximately **RMB 112.86 million** in the first half of 2025, compared to approximately **RMB 83.71 million** in the same period of 2024[52](index=52&type=chunk) [Outlook](index=19&type=section&id=Outlook) Looking ahead, the Group faces challenges from global trade policy changes and the US-China trade war, but the rapid development of China's industrial gas industry, emerging gas demands, and shifts in gas supply models offer significant development opportunities [Impact of External Factors](index=19&type=section&id=Impact%20of%20External%20Factors) Falling steel prices and high raw material costs in China pressure steel industry profitability, while changing US trade policies and the US-China trade war increase global trade uncertainty, potentially affecting the Group's major customers' demand and market position - China's GDP growth target: The full-year gross domestic product growth target for 2025 is approximately **5%**[53](index=53&type=chunk) - Steel industry challenges: Falling steel prices and high raw material prices have led to a decline in the **steel industry's profitability**[53](index=53&type=chunk) - Trade policy risks: Increased US tariffs and the US-China trade war may affect steel mills' production plans and market demand, potentially reducing the Group's **market share**[53](index=53&type=chunk)[54](index=54&type=chunk) [Development Opportunities from Industry Prospects](index=19&type=section&id=Development%20Opportunities%20from%20Industry%20Prospects) Driven by national policies, foreign investment, and high-tech advancements, China's industrial gas industry is rapidly developing, with emerging gas demands (e.g., electronic specialty gases) expected to grow, providing opportunities for the Group to expand its market share - Industry development drivers: **National policy promotion, introduction of foreign capital, and high-tech development**[55](index=55&type=chunk) - Emerging demand: New gas demands, represented by **electronic specialty gases**, are continuously emerging[55](index=55&type=chunk) - Group strategy: Actively developing specialty gas products and expanding market share in **electronic specialty gas products**[55](index=55&type=chunk) [Opportunities from the Development of Gas Supply Models](index=20&type=section&id=Opportunities%20from%20the%20Development%20of%20Gas%20Supply%20Models) The outsourced gas supply model is steadily gaining market share due to its low operating costs, stable supply, and high resource utilization efficiency, expected to gradually replace self-built equipment supply, offering external development opportunities for the Group - Advantages of outsourced gas supply model: **Low operating costs, stable supply, high resource utilization efficiency, and low one-time financial costs**[56](index=56&type=chunk) - Market trend: The outsourced gas supply model is expected to gradually replace the **self-built equipment supply model** in the future[56](index=56&type=chunk) - Group strategy: Fully leveraging its successful experience and technological advantages as an outsourced gas supplier to seek **external development opportunities**[56](index=56&type=chunk) [Group Business Development](index=20&type=section&id=Group%20Business%20Development) The Group benefits from strong customer support, and with customers expanding production capacity, demand for industrial gas products is increasing, anticipating stable business growth in the future - Growth drivers: The Group has strong customer support for business development, with increasing demand for industrial gas products as **customers expand production capacity**[57](index=57&type=chunk) - Expectation: The Group expects **stable business growth** in the future[57](index=57&type=chunk) [Incremental Demand for Industrial Gas Products](index=20&type=section&id=Incremental%20Demand%20for%20Industrial%20Gas%20Products) The construction of HBIS Tangsteel Company's coastal base No. 4 blast furnace and cold rolling production line will lead to the commissioning and debugging of oxygen and hydrogen production units for the Group, indicating specific incremental demand for industrial gas products - Construction of HBIS Tangsteel Company's coastal base No. 4 blast furnace: The supporting **60,000 Nm3/h oxygen production unit** is ready for commissioning and will be operational after the No. 4 blast furnace commences production[58](index=58&type=chunk) - Construction of HBIS Tangsteel Company's coastal base cold rolling production line: The supporting **hydrogen production unit** is currently undergoing debugging[58](index=58&type=chunk) [Financial Review](index=20&type=section&id=Financial%20Review) This section provides a detailed analysis of the Group's financial performance during the reporting period, including changes in revenue, gross profit, net profit, various expenses, and income tax, revealing the positive impact of revenue growth, cost control, and reduced impairment losses on profitability [Overall Financial Performance](index=20&type=section&id=Overall%20Financial%20Performance) During the reporting period, the Group's revenue, gross profit, profit attributable to owners of the company, and earnings per share all increased, with a significant rise in profit attributable to owners | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Revenue | 701.86 | 640.75 | +9.54% | | Gross Profit | 168.44 | 165.16 | +1.99% | | Profit attributable to owners of the Company | 74.60 | 51.79 | +44.05% | | Earnings per share | 0.06 | 0.04 | +50.00% | [Revenue Analysis](index=21&type=section&id=Revenue%20Analysis) During the reporting period, the Group's total revenue grew by 9.54%, primarily driven by significant increases in revenue from the supply of piped industrial gases and liquefied natural gas and gas transmission services, while revenue from the supply of liquefied industrial gases decreased due to capacity allocation adjustments - Total revenue: Approximately **RMB 701.86 million**, an increase of approximately **9.54%** compared to approximately **RMB 640.75 million** in the same period of 2024[60](index=60&type=chunk) - Revenue from supply of piped industrial gases: Approximately **RMB 512.89 million**, an increase of approximately **10.87%** compared to the same period of 2024, primarily due to an increase in **third-party piped gas users**[60](index=60&type=chunk) - Revenue from supply of liquefied industrial gases: Approximately **RMB 62.69 million**, a decrease of approximately **23.92%** compared to the same period of 2024, mainly due to increased piped gas supply to related parties and third parties, leaving no surplus oxygen for the production of **liquefied industrial gases**[60](index=60&type=chunk) - Revenue from supply of liquefied natural gas and gas transmission services: Approximately **RMB 112.87 million**, an increase of approximately **34.83%** compared to the same period of 2024, primarily due to the resumption of **normal liquefied natural gas production**[60](index=60&type=chunk) - Revenue from technical support and management services: Approximately **RMB 8.55 million**, an increase of approximately **21.62%** compared to the same period of 2024, primarily due to a significant increase in the volume of **piped nitrogen and hydrogen**[60](index=60&type=chunk) [Other Income and Other Losses or Gains, Net](index=21&type=section&id=Other%20Income%20and%20Other%20Losses%20or%20Gains%2C%20Net) The Group's other income increased by over 56.5% year-on-year, mainly due to increased revenue from scrap product sales and VAT reversals; concurrently, net other losses significantly decreased, primarily benefiting from a reduction in net foreign exchange losses - Other income: Approximately **RMB 6.43 million**, an increase of over **56.5%**, primarily due to increased revenue from the sale of scrap products and **VAT reversals**[61](index=61&type=chunk) - Net other losses: Approximately **RMB 0.062 million**, a significant decrease compared to approximately **RMB 1.24 million** in the same period of 2024, primarily due to a reduction in **net foreign exchange losses**[61](index=61&type=chunk) [Selling and Marketing Expenses](index=21&type=section&id=Selling%20and%20Marketing%20Expenses) During the reporting period, the Group's selling and marketing expenses decreased by approximately 5.26% year-on-year, primarily due to lower equipment maintenance costs - Selling and marketing expenses: Decreased by approximately **5.26%** to approximately **RMB 1.44 million** (same period of 2024: approximately **RMB 1.52 million**), primarily due to reduced **equipment maintenance expenses** in the first half of 2025[62](index=62&type=chunk) [Administrative Expenses](index=21&type=section&id=Administrative%20Expenses) The Group's administrative expenses decreased by approximately 23.36% year-on-year, mainly due to reduced depreciation of fixed assets and lower operating service fees resulting from service termination - Administrative expenses: Decreased by approximately **23.36%** to approximately **RMB 17.98 million** (same period of 2024: approximately **RMB 23.46 million**), primarily due to reduced depreciation of fixed assets and lower operating service fees resulting from **service termination**[63](index=63&type=chunk) [Provision for Credit Losses on Trade Receivables](index=22&type=section&id=Provision%20for%20Credit%20Losses%20on%20Trade%20Receivables) During the reporting period, the Group's provision for credit losses on trade receivables significantly increased year-on-year, primarily due to an increase in receivables aged between 6 months to 1 year and 1 to 2 years - Provision for credit losses: Increased by approximately **RMB 12.11 million** (same period of 2024: approximately **RMB 1.88 million**), primarily due to an increase in receivables aged **6 months to 1 year and 1 to 2 years**[64](index=64&type=chunk) [Impairment Loss on Property, Plant and Equipment](index=22&type=section&id=Impairment%20Loss%20on%20Property%2C%20Plant%20and%20Equipment) During the reporting period, the Group recognized no impairment provision for property, plant and equipment, contrasting with the prior period's significant impairment due to obsolescence and operating losses - Impairment provision: No impairment provision was recognized for property, plant and equipment during the reporting period (same period of 2024: impairment provision of **RMB 37,891,436** was recognized)[65](index=65&type=chunk) [Finance Costs - Net](index=22&type=section&id=Finance%20Costs%20-%20Net) The Group's net finance costs decreased by approximately 8.76% year-on-year, primarily due to a reduction in borrowing amounts - Net finance costs: Decreased by approximately **8.76%** to approximately **RMB 8.54 million** (same period of 2024: approximately **RMB 9.36 million**), primarily due to a reduction in **borrowing amounts**[66](index=66&type=chunk) [Income Tax Expense](index=22&type=section&id=Income%20Tax%20Expense) The Group's income tax expense significantly increased by approximately 88.82% year-on-year, primarily due to a substantial increase in profit before tax - Income tax expense: Approximately **RMB 23.37 million** (same period of 2024: approximately **RMB 12.37 million**), an increase of approximately **88.82%**, primarily due to an increase in the Group's **profit before tax**[67](index=67&type=chunk) [Liquidity, Financial Resources and Funding](index=22&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Funding) The Group's cash and bank balances increased, while bank borrowings and other liabilities decreased, leading to an improved gearing ratio and net debt. Despite a slight decrease, the current ratio remains healthy, with sufficient bank loan facilities to support future operations and capital expenditures [Cash and Bank Balances and Borrowings](index=22&type=section&id=Cash%20and%20Bank%20Balances%20and%20Borrowings) As of June 30, 2025, the Group's cash and bank balances increased, while bank borrowings and other liabilities decreased, indicating an improvement in financial position - Total cash and bank balances: Approximately **RMB 193.84 million** as of June 30, 2025 (December 31, 2024: approximately **RMB 183.88 million**)[68](index=68&type=chunk) - Bank borrowings and other liabilities: Approximately **RMB 395.29 million** as of June 30, 2025 (December 31, 2024: approximately **RMB 463.69 million**)[68](index=68&type=chunk) - Available bank loan facilities: Approximately **RMB 325.50 million** as of June 30, 2025[68](index=68&type=chunk) [Gearing Ratio and Net Debt](index=22&type=section&id=Gearing%20Ratio%20and%20Net%20Debt) Both the Group's gearing ratio and net debt decreased, reflecting a reduction in financial leverage and an improvement in financial position - Gearing ratio: Approximately **23%** as of June 30, 2025 (December 31, 2024: **28%**)[68](index=68&type=chunk) - Net debt: Approximately **RMB 201.45 million** as of June 30, 2025 (December 31, 2024: approximately **RMB 279.81 million**)[68](index=68&type=chunk) [Current Assets and Liabilities](index=22&type=section&id=Current%20Assets%20and%20Liabilities) As of June 30, 2025, the Group's total current assets increased, and total current liabilities also increased, resulting in a slight decrease in the current ratio, which nonetheless remains healthy - Total current assets: Approximately **RMB 864.46 million** as of June 30, 2025, an increase of approximately **3.00%** compared to approximately **RMB 839.31 million** as of December 31, 2024[69](index=69&type=chunk) - Total current liabilities: Approximately **RMB 605.93 million** as of June 30, 2025, an increase of approximately **10.84%** compared to approximately **RMB 546.68 million** as of December 31, 2024[69](index=69&type=chunk) - Current ratio: Approximately **1.43** as of June 30, 2025 (December 31, 2024: approximately **1.54**)[69](index=69&type=chunk) [Funding Sources for Operations and Capital Expenditures](index=23&type=section&id=Funding%20Sources%20for%20Operations%20and%20Capital%20Expenditures) The Group's operating and capital expenditures are primarily funded by cash generated from operations, internal liquidity, and bank loans, with future cash flows expected to meet its needs - Funding sources: The Group's operating and capital expenditures are primarily funded by **cash generated from operations, internal liquidity, and bank loans**[70](index=70&type=chunk) - Future outlook: Cash flows generated from the Group's operations are expected to meet its **future cash flow requirements**[72](index=72&type=chunk) [Risk Management](index=23&type=section&id=Risk%20Management) The Group balances risk and investment returns by managing foreign currency, credit, and liquidity risks. Despite provisions for trade receivables, credit risk for major customers is assessed as not significant, and liquidity policies are effective [Financial Instruments and Key Risks](index=23&type=section&id=Financial%20Instruments%20and%20Key%20Risks) The Group's main financial instruments include financial assets at fair value through other comprehensive income, trade and other receivables, bank balances and cash, trade and other payables, borrowings, and lease liabilities, with key risks being foreign currency, credit, liquidity, and interest rate risks - Major financial instruments: Financial assets at fair value through other comprehensive income, trade and other receivables, bank balances and cash, trade and other payables, **borrowings, and lease liabilities**[71](index=71&type=chunk) - Key risks: **Foreign currency risk, credit risk, liquidity risk, and interest rate risk**[71](index=71&type=chunk) [Credit Risk](index=23&type=section&id=Credit%20Risk) As of June 30, 2025, the Group's provision for credit losses on trade receivables increased, but management considers the inherent credit risk not significant, given the good historical performance and credit quality assessment of its major customer (HBIS Group), while maintaining a prudent approach to impairment provisions - Provision for credit losses: As of June 30, 2025, a provision for impairment loss of approximately **RMB 38.69 million** was recognized for trade receivables (December 31, 2024: approximately **RMB 26.58 million**)[72](index=72&type=chunk) - Major source of trade receivables: As of June 30, 2025, approximately **96%** of the Group's trade receivables were due from HBIS Group and its member companies (December 31, 2024: approximately **89%**)[72](index=72&type=chunk) - Management assessment: Given the good historical performance of receivables, the Group's management believes that the inherent credit risk of the Group's outstanding trade receivables balance is not significant, but has made impairment provisions for trade receivables based on the **principle of prudence**[72](index=72&type=chunk) [Liquidity Risk](index=24&type=section&id=Liquidity%20Risk) The Group manages liquidity risk by regularly monitoring cash positions, forecasting cash flows, and assessing liquidity levels to ensure sufficient liquidity, and considers its liquidity policy effective - Management approach: Managing liquidity risk by regularly monitoring the following objectives: maintaining stable development of the Group's principal businesses, timely monitoring of cash and bank positions, forecasting cash flows, and assessing **liquidity levels**[75](index=75&type=chunk) - Policy effectiveness: The Group has consistently followed this liquidity policy during the reporting period, and it has been **effective in managing liquidity risk**[72](index=72&type=chunk) [Foreign Currency Risk](index=23&type=section&id=Foreign%20Currency%20Risk) The Group's foreign currency risk primarily arises from other payables and cash and cash equivalents denominated in currencies other than its functional currency, mainly involving USD and HKD, but management considers the foreign exchange risk not significant - Source of risk: Other payables and cash and cash equivalents arising from the Group's operations primarily outside China are denominated in currencies other than their respective **functional currencies**[73](index=73&type=chunk) - Major currencies: The currencies giving rise to such risks are primarily **USD and HKD**[73](index=73&type=chunk) - Hedging policy: The Group does not use derivative financial instruments to hedge its foreign exchange risk, but management regularly reviews and considers its foreign exchange risk to be **not significant**[73](index=73&type=chunk)[74](index=74&type=chunk) [Other Financial Information](index=24&type=section&id=Other%20Financial%20Information) This section provides supplementary financial information on pledged assets, treasury policy, material investments, capital commitments, contingent liabilities, and material events after the reporting period, indicating stability in these areas [Pledged Assets](index=24&type=section&id=Pledged%20Assets) As of June 30, 2025, none of the Group's assets were pledged, consistent with the prior year - Pledged assets: As of June 30, 2025, none of the Group's assets were pledged (December 31, 2024: **nil**)[76](index=76&type=chunk) [Treasury Policy](index=24&type=section&id=Treasury%20Policy) The Group holds bank balances and cash denominated in HKD, RMB, and USD, currently without foreign currency and interest rate hedging policies, but management monitors and considers hedging significant risks when necessary - Currencies held: The Group's bank balances and cash are denominated in **HKD, RMB, and USD**[77](index=77&type=chunk) - Hedging policy: The Group currently has no foreign currency and interest rate hedging policies; however, management monitors foreign currency and interest rate risks from time to time and will consider hedging significant risks **when necessary**[77](index=77&type=chunk) [Material Investments, Acquisitions and Disposals Held](index=24&type=section&id=Material%20Investments%2C%20Acquisitions%20and%20Disposals%20Held) During the reporting period, the Group did not undertake any material investment, acquisition, or disposal activities - Material investments/acquisitions/disposals: During the reporting period, the Group held no material investments, made no material acquisitions or disposals of subsidiaries or associates, nor any available-for-sale investment projects[78](index=78&type=chunk) [Capital Commitments](index=24&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's total capital commitments decreased, primarily for the purchase of property, plant and equipment - Total capital commitments: Approximately **RMB 36.83 million** as of June 30, 2025 (December 31, 2024: approximately **RMB 55.68 million**)[79](index=79&type=chunk) - Primary use: Primarily contractual commitments for the purchase of **property, plant and equipment**[79](index=79&type=chunk) [Contingent Liabilities](index=24&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities - Contingent liabilities: As of June 30, 2025, the Group had no material contingent liabilities (December 31, 2024: **nil**)[80](index=80&type=chunk) [Material Events After Reporting Period](index=24&type=section&id=Material%20Events%20After%20Reporting%20Period) As of the date of this announcement, the directors are not aware of any material events requiring disclosure that have occurred after the reporting period - Events after reporting period: As of the date of this announcement, the directors are not aware of any material events requiring disclosure that have occurred after the reporting period[81](index=81&type=chunk) [Other Information](index=24&type=section&id=Other%20Information) This section covers other important information, including employee and remuneration policies, corporate governance practices, interim dividend recommendations, publication details, and the composition of the Board of Directors [Employees and Remuneration Policy](index=24&type=section&id=Employees%20and%20Remuneration%20Policy) The Group values talent, attracting and retaining highly skilled personnel through continuous education, training, and a share option scheme, offering a competitive remuneration package. CEO Mr. Li Libing has waived his remuneration for the reporting period [Employee Profile and Training](index=24&type=section&id=Employee%20Profile%20and%20Training) The Group views talent as key to its success, committed to attracting and retaining highly skilled personnel, and enhancing employee skills in operations, technical knowledge, safety standards, and environmental protection through continuous education and training programs - Talent strategy: The Group believes that talent is one of the key factors leading to its success, and plans to continue attracting and retaining highly skilled personnel, while further strengthening its **corporate culture**[82](index=82&type=chunk) - Training content: The Group provides training to employees on operations, technical knowledge, as well as **work safety standards and environmental protection**[83](index=83&type=chunk) [Share Option Scheme](index=25&type=section&id=Share%20Option%20Scheme) The Group adopted a share option scheme in 2020 as a long-term incentive for eligible employees, valid for ten years, but no share options have been granted to date - Adoption date: The Group conditionally adopted the share option scheme on **June 17, 2020**, through a written resolution of its then shareholders[83](index=83&type=chunk) - Validity period: The scheme is valid for **10 years** from December 29, 2020[83](index=83&type=chunk) - Grant status: As of the date of this announcement, no share options have been granted, cancelled, or lapsed[83](index=83&type=chunk) [Number of Employees and Staff Costs](index=25&type=section&id=Number%20of%20Employees%20and%20Staff%20Costs) As of June 30, 2025, the Group's number of employees slightly decreased, with a corresponding reduction in total staff costs, while still offering a competitive remuneration package to employees - Number of employees: As of June 30, 2025, the Group employed a total of **315 employees** (December 31, 2024: **324 employees**)[83](index=83&type=chunk) - Total staff costs: Approximately **RMB 28.18 million** for the year ended June 30, 2025 (same period of 2024: approximately **RMB 28.62 million**)[83](index=83&type=chunk) [Chief Executive Officer's Remuneration](index=25&type=section&id=Chief%20Executive%20Officer's%20Remuneration) CEO Mr. Li Libing has confirmed in writing that he waived all his remuneration, including director's fees, salaries, and allowances, for the reporting periods from 2022 to 2025 - Chief Executive Officer: Mr. Li Libing was appointed as Chief Executive Officer on **March 31, 2022**[84](index=84&type=chunk) - Remuneration waiver: Mr. Li has waived his remuneration for the years ended **December 31, 2022, December 31, 2023, December 31, 2024**, and the reporting period[84](index=84&type=chunk) - Waived amount: The Chief Executive Officer's remuneration waived for the 2025 reporting period was **HKD 600,000**[84](index=84&type=chunk) [Corporate Governance](index=25&type=section&id=Corporate%20Governance) The Group is committed to maintaining high standards of corporate governance, having adopted and complied with the Corporate Governance Code in Appendix C1 of the Listing Rules, ensuring directors adhere to the Model Code for securities transactions, and the Audit Committee has reviewed the interim results [Compliance with Corporate Governance Code](index=25&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company has adopted and complied with the Corporate Governance Code set out in Part 2 of Appendix C1 of the Listing Rules during the reporting period to safeguard the overall interests of shareholders - Compliance: The company has complied with all applicable code provisions of the Corporate Governance Code during the **reporting period**[86](index=86&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=25&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - Securities transactions: During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities (including the sale of treasury shares)[87](index=87&type=chunk) [Standard Code for Securities Transactions](index=26&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The company has adopted a code of conduct for directors' securities transactions no less stringent than the Model Code in Appendix C3 of the Listing Rules, and all directors have confirmed compliance during the reporting period - Code of conduct: The company has adopted a code of conduct for directors' securities transactions, the terms of which are no less stringent than the standards set out in the **Model Code for Securities Transactions by Directors of Listed Issuers** in Appendix C3 of the Listing Rules[88](index=88&type=chunk) - Directors' compliance: Following specific inquiries to all directors, all directors have confirmed compliance with the standards set out in the Model Code throughout the **reporting period**[88](index=88&type=chunk) [Review by Audit Committee](index=26&type=section&id=Review%20by%20Audit%20Committee) The company's Audit Committee has reviewed the Group's unaudited interim condensed consolidated financial information and this announcement for the reporting period, discussing accounting policies, internal controls, and financial reporting matters. The independent auditor has also reviewed the interim financial information - Review content: The company's Audit Committee has reviewed the Group's unaudited interim condensed consolidated financial information and this announcement for the reporting period, and also discussed matters related to the accounting policies and practices adopted by the company, as well as **internal controls and financial reporting matters**[89](index=89&type=chunk) - Independent auditor: The company's independent auditor, BDO Limited, has reviewed the Group's unaudited interim financial information for the reporting period in accordance with **Hong Kong Standard on Review Engagements 2410** issued by the Hong Kong Institute of Certified Public Accountants[89](index=89&type=chunk) [Interim Dividend](index=26&type=section&id=Interim%20Dividend) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025, consistent with the prior year - Interim dividend: The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: **nil**)[90](index=90&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=26&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This results announcement has been published on the HKEX and the company's website, and the interim report will be dispatched to shareholders and published on the aforementioned websites in late September 2025 - Announcement publication platforms: This results announcement has been published on the **HKEX website (www.hkexnews.hk)** and the **company's website (www.cgiihldgs.com)**[91](index=91&type=chunk) - Interim report publication time: The company's interim report for the six months ended June 30, 2025, will be dispatched to shareholders and published on the aforementioned websites in **late September 2025**[91](index=91&type=chunk) [Board of Directors](index=26&type=section&id=Board%20of%20Directors) As of the announcement date, the Board of Directors comprises executive, non-executive, and independent non-executive directors, with Mr. Song Changjiang serving as Chairman and Executive Director - Chairman and Executive Director: **Mr. Song Changjiang**[92](index=92&type=chunk)[93](index=93&type=chunk) - Board composition: Includes Executive Directors Mr. Song Changjiang (Chairman) and Mr. Sun Changhuan; Non-executive Directors Ms. Wu Shuk Ming and Mr. Zhang Wenli; and Independent Non-executive Directors Mr. Siu Chi Hung, Mr. Xiao Huanwei, and Ms. Li Juan[93](index=93&type=chunk)

Core Viewpoint - CGII HLDGS (01940.HK) expects to record a net profit of no less than RMB 70 million for the six months ending June 30, 2025, compared to an estimated net profit of approximately RMB 51.79 million for the six months ending June 30, 2024 [1] Financial Performance - The increase in net profit is primarily attributed to the absence of impairment losses on properties, plants, and equipment for the six months ending June 30, 2025, whereas there was an impairment loss of approximately RMB 37.89 million for the six months ending June 30, 2024 [1] - Additionally, the increase in net profit is offset by an increase in credit loss provisions for trade receivables of approximately RMB 10 million for the six months ending June 30, 2025 [1]