Group 1 - The stock of Xirui (02507.HK) increased by nearly 6%, reaching a price of 54.05 HKD at the time of reporting [1] - The trading volume amounted to 21.1299 million HKD [1]

Core Viewpoint - The stock of Xirui (02507) has increased nearly 6%, currently trading at 54.05 HKD with a transaction volume of 21.1299 million HKD, driven by supportive government policies for the low-altitude economy and the company's strong market position [1]. Group 1: Industry Developments - The Central Committee of the Communist Party of China has proposed to develop emerging pillar industries and accelerate the growth of strategic emerging industry clusters, including the low-altitude economy [1]. - Recent policies from Anhui and Henan provinces, as well as multiple support policies from Guangdong, aim to bolster the low-altitude economy [1]. Group 2: Company Performance - Western Securities has indicated that the long-term competitive landscape of the industry remains stable, with Xirui's brand and manufacturing advantages being significant [1]. - Xirui is expected to maintain its market share advantage, contributing to its long-term steady growth potential [1]. - The company is gradually expanding its production capacity and service network, which is anticipated to enhance its delivery capabilities and product matrix, leading to accelerated performance in the future [1].

Core Viewpoint - Jiangxi Ruijian Tongda Alloy Co., Ltd. has been established with a registered capital of 10 million RMB, focusing on various manufacturing and sales activities related to non-ferrous metal alloys and other materials [1] Company Summary - The company is legally represented by Huang Gaoping [1] - The registered capital of the company is 10 million RMB [1] - The business scope includes manufacturing and processing of non-ferrous metal alloys, sales of non-ferrous metal alloys, and various metal materials [1] - The company is also involved in the recycling of renewable resources, including production waste metals [1] - Additional activities include the manufacturing and sales of household appliances, import and export of goods, and leasing of non-residential real estate [1] Industry Summary - The establishment of Jiangxi Ruijian Tongda Alloy Co., Ltd. indicates growth in the non-ferrous metal alloy manufacturing sector [1] - The company’s diverse business activities reflect a trend towards integrated operations in the metal and materials industry [1] - The focus on renewable resource recycling aligns with industry movements towards sustainability and resource efficiency [1]

I. 法定/註冊股本變動 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 | | | 致：香港交易及結算所有限公司 公司名稱: 西銳飛機有限公司 呈交日期: 2025年10月6日 | 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) | 02507 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 500,000,000 | USD | | 0.5 USD | | 250,000,000 | | 增加 / 減少 (-) | | | 0 | | | USD | | 0 | | 本月底結存 | | | 500,000,000 | USD | | 0.5 USD | | 250,000,000 | II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 ...

Core Viewpoint - The article discusses the recent adjustments in the Hong Kong Stock Connect market, highlighting the inclusion and subsequent exclusion of certain stocks due to liquidity issues and regulatory loopholes. Group 1: Market Adjustments - As of September 2025, the Hong Kong Stock Connect has included 67 stocks and excluded 61 stocks, with the adjustments based on market capitalization and liquidity requirements [1] - The inclusion criteria for stocks in the Hang Seng Composite Index require meeting specific market capitalization and liquidity thresholds, particularly for small-cap stocks [1] Group 2: Case Studies of Anomalies - The case of Xirui Aircraft illustrates a contradiction where the stock was initially rejected for poor liquidity but was later included without significant improvement, only to be removed 125 days later due to historical liquidity issues [4][7] - Xirui Aircraft's average market capitalization was 83 billion HKD at the time of inclusion, but it dropped to 69 billion HKD by the review date, failing to meet the required thresholds [4] - The stock's trading volume was consistently low, with an average turnover rate of only 0.21% in July 2024, which did not meet the liquidity requirements [5][6] Group 3: Regulatory Concerns - The inclusion of Lukuang despite its suspension and financial risks raises questions about the adequacy of the current review mechanisms for the Hong Kong Stock Connect [8][10] - Lukuang's market capitalization reached 161 billion HKD by December 2024, allowing it to meet the inclusion criteria, but it faced significant risks shortly before its scheduled inclusion [10] - Despite known risks, Lukuang was included in the index on March 10, 2025, only to be removed 63 days later due to ongoing suspension, which prevented southbound investors from incurring losses [11]

Cirrus Aircraft Limited 西銳飛機有限公司 (Incorporated in the Cayman Islands with limited liability) （於開曼群島註冊成立的有限公司） (Stock Code 股份代號: 2507) Dear non-registered shareholder(s), 29 September 2025 Reminder letter regarding the Arrangement of Electronic Dissemination of Corporate Communications With reference to the notification letter dated 20 September 2024 titled "Arrangement of Electronic Dissemination of Corporate Communications", Cirrus Aircraft Limited (the "Company") is writing to remind you that the Company ...

Cirrus Aircraft Limited 西銳飛機有限公司 (Incorporated in the Cayman Islands with limited liability) （於開曼群島註冊成立的有限公司） (Stock Code 股份代號: 2507) Please note that both the English and Chinese versions of all future Corporate Communications will be available electronically on the website of the Company at www.cirrusaircraft.com and the HKEXnews website at www.hkexnews.hk in place of printed copies. Solicitation of electronic contact details The Company has not received your email address for the electronic dissemination ...

[Definitions](index=3&type=section&id=Definitions) [Company Information](index=8&type=section&id=Company%20Information) [Financial and Business Highlights](index=10&type=section&id=Financial%20and%20Business%20Highlights) Cirrus Aircraft's H1 2025 revenue increased 25.1% to $594.5 million, with net profit surging 82.5% to $65 million, driven by higher deliveries, improved pricing, and growth in services - The latest **SR Series G7+ model** was launched in H1 2025, featuring the standard **Safe Return™ emergency autoland system**, and new **Cirrus IQ PRO™**-enabled automatic database updates, runway occupancy awareness, and intelligent pitot heat functions[14](index=14&type=chunk) H1 2025 Key Financial Data Comparison | Metric | H1 2025 (USD Thousands) | H1 2024 (USD Thousands) | Growth Rate | | :--- | :--- | :--- | :--- | | Revenue | 594,488 | 475,386 | 25.1% | | Gross Profit | 215,003 | 163,441 | 31.5% | | Profit Before Tax | 82,108 | 44,068 | 86.3% | | Profit for the Period | 64,966 | 35,607 | 82.5% | - Cirrus Services and other revenue increased from approximately **$77.5 million** in H1 2024 to approximately **$96.2 million** in H1 2025, primarily driven by growth in the JetStream program and flight training business[14](index=14&type=chunk) - The company is committed to smoothing the usual seasonal delivery pattern between the first and second halves of the year by improving production line consistency and predictability[14](index=14&type=chunk) [Business Review](index=12&type=section&id=Business%20Review) Cirrus Aircraft, an innovator in private aviation, designs, manufactures, and sells SR2X series and Vision Jets, certified in over 60 countries, focusing on safety, technology, and customer experience - The company designs, develops, manufactures, and sells **SR2X series** and **Vision Jets**, having delivered over **10,000 SR2X series aircraft** and over **600 Vision Jets**, with certifications in over **60 countries**[18](index=18&type=chunk) - The company's design philosophy is customer-centric, focusing on enhancing the aviation experience through safety, service, advanced high-performance technology, connectivity, ease of use, comfort, and personalization[19](index=19&type=chunk) - Equipped with the patented **Cirrus Airframe Parachute System** (which has saved over **250 lives**) and the **Safe Return emergency autoland system** (standard on all models delivered since May 2025), the company boasts the safest accident record in US general aviation, with a total accident rate one-third of the industry average[19](index=19&type=chunk) - The company employs a "close to customer" sales model, establishing sales organizations in over **36 countries** through sales agents and Cirrus sales agents, while also providing a comprehensive after-sales ownership and support ecosystem through the "Cirrus Services and Other" business segment[20](index=20&type=chunk)[21](index=21&type=chunk) [Business Development](index=14&type=section&id=Business%20Development) As of June 30, 2025, Cirrus Aircraft delivered over 10,000 SR2X series and 600 Vision Jets, holding 1,056 aircraft in backlog, while actively smoothing production seasonality - As of June 30, 2025, the company has delivered over **10,000 SR2X series aircraft** and over **600 Vision Jets**, with a backlog of **1,056 aircraft**, including approximately **229 Vision Jet reservations**[22](index=22&type=chunk) - For the six months ended June 30, 2025, combined net orders for SR2X and Vision Jets decreased by **121 aircraft** to **241**, primarily due to the G7 series launch stimulating orders in H1 2024, and the G7+ series launch in May 2025 altering order patterns[22](index=22&type=chunk) - The company maintains a competitive edge in product development and innovation through continuous product portfolio updates, development of innovative safety features, mastery of advanced materials, aircraft certification, and integration of advanced technologies[22](index=22&type=chunk) - For the six months ended June 30, 2025, the company produced and delivered more aircraft than in the prior period, with **411 aircraft produced** (360 SR2X, 51 Vision Jets) and **350 delivered** (305 SR2X, 45 Vision Jets), aiming to smooth the full-year delivery pace[24](index=24&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) [1. Overview](index=15&type=section&id=1.%20Overview) For the six months ended June 30, 2025, the Group's revenue reached $594.5 million and profit was $65 million, driven by increased aircraft deliveries and a shift to more consistent performance H1 2025 Key Financial Data Overview | Metric | H1 2025 (USD Millions) | H1 2024 (USD Millions) | | :--- | :--- | :--- | | Revenue | 594.5 | 475.4 | | Profit | 65.0 | 35.6 | | Selling and Marketing Expenses | 63.6 | 57.0 | | General and Administrative Expenses | 70.0 | 60.3 | - The increase in deliveries has altered the company's historical general delivery pattern, leading to more consistent results not seen in prior years[25](index=25&type=chunk) [2. Revenue](index=15&type=section&id=2.%20Revenue) For the six months ended June 30, 2025, revenue increased to $594.5 million, up 25.1% year-over-year, due to 63 additional aircraft deliveries and higher average selling prices for SR2X and Vision Jets H1 2025 Revenue and Delivery Comparison | Metric | H1 2025 | | :--- | :--- | | Revenue (USD Millions) | 594.5 | | Aircraft Deliveries (Units) | 350 | | SR2X Deliveries (Units) | 305 | | Vision Jet Deliveries (Units) | 45 | - The average selling price for SR2X aircraft deliveries from **$1.04 million** in the prior period to approximately **$1.14 million**; Vision Jet deliveries' average selling price increased from **$3.33 million** to **$3.48 million**[26](index=26&type=chunk) - Cirrus Services and other revenue increased by approximately **$18.7 million** compared to the prior period[26](index=26&type=chunk) [3. Cost of Sales](index=15&type=section&id=3.%20Cost%20of%20Sales) For the six months ended June 30, 2025, cost of sales increased to $379.5 million, primarily due to higher aircraft deliveries, G7+ series launch costs, and growth in Cirrus Services and other sales Cost of Sales Comparison | Metric | H1 2025 (USD Millions) | H1 2024 (USD Millions) | Change | | :--- | :--- | :--- | :--- | | Cost of Sales | 379.5 | 311.9 | Increase 67.6 | - The increase in cost of sales is primarily attributable to higher aircraft deliveries, increased costs associated with the launch of the G7+ series, and increased sales in Cirrus Services and other[29](index=29&type=chunk) [4. Gross Profit and Gross Margin](index=16&type=section&id=4.%20Gross%20Profit%20and%20Gross%20Margin) For the six months ended June 30, 2025, gross profit increased to $215 million, and gross margin improved from 34.4% to 36.2%, driven by higher aircraft deliveries, improved pricing, and growth in Cirrus Services and other sales Gross Profit and Gross Margin Comparison | Metric | H1 2025 (USD Millions) | H1 2024 (USD Millions) | Change | | :--- | :--- | :--- | :--- | | Gross Profit | 215.0 | 163.4 | Increase 51.6 | | Gross Margin | 36.2% | 34.4% | Increase 1.8 percentage points | - The increase in gross profit and gross margin is primarily due to higher aircraft deliveries resulting from the company's efforts to smooth seasonal deliveries, increased aircraft pricing, and increased sales in Cirrus Services and other[30](index=30&type=chunk) [5. Selling and Marketing Expenses](index=16&type=section&id=5.%20Selling%20and%20Marketing%20Expenses) For the six months ended June 30, 2025, selling and marketing expenses increased 11.6% to $63.6 million, mainly due to higher costs supporting the growth of Cirrus Services and other businesses Selling and Marketing Expenses Comparison | Metric | H1 2025 (USD Millions) | H1 2024 (USD Millions) | Change | | :--- | :--- | :--- | :--- | | Selling and Marketing Expenses | 63.6 | 57.0 | Increase 6.6 (11.6%) | - The increase in selling and marketing expenses is primarily due to increased costs supporting the growth of Cirrus Services and other[31](index=31&type=chunk) [6. General and Administrative Expenses](index=16&type=section&id=6.%20General%20and%20Administrative%20Expenses) For the six months ended June 30, 2025, general and administrative expenses increased 16.1% to $70 million, attributed to a base effect from reinsurance recovery in 2024 and higher R&D costs General and Administrative Expenses Comparison | Metric | H1 2025 (USD Millions) | H1 2024 (USD Millions) | Change | | :--- | :--- | :--- | :--- | | General and Administrative Expenses | 70.0 | 60.3 | Increase 9.7 (16.1%) | - This increase is primarily attributable to the recovery of identified recoverable reinsurance in 2024, which reduced expenses, and increased research and development costs[32](index=32&type=chunk) [7. Finance Costs](index=17&type=section&id=7.%20Finance%20Costs) For the six months ended June 30, 2025, finance costs decreased to $2 million, mainly due to a reduction in principal borrowings from payments to lenders Finance Costs Comparison | Metric | H1 2025 (USD Millions) | H1 2024 (USD Millions) | Change | | :--- | :--- | :--- | :--- | | Finance Costs | 2.0 | 2.7 | Decrease 0.7 | - The decrease in finance costs is primarily due to a reduction in the principal amount of borrowings from payments made to lenders[33](index=33&type=chunk) [8. Profit for the Period](index=17&type=section&id=8.%20Profit%20for%20the%20Period) For the six months ended June 30, 2025, the Group's profit for the period increased significantly to $65 million from $35.6 million in the prior year, reflecting the combined impact of revenue growth and cost control Profit for the Period Comparison | Metric | H1 2025 (USD Millions) | H1 2024 (USD Millions) | Change | | :--- | :--- | :--- | :--- | | Profit for the Period | 65.0 | 35.6 | Increase 29.4 | [9. Liquidity and Working Capital](index=17&type=section&id=9.%20Liquidity%20and%20Working%20Capital) As of June 30, 2025, cash and bank balances decreased to $340.4 million, mainly due to increased inventory, fixed asset purchases for capacity expansion, development projects, and higher H1 working capital needs Liquidity and Working Capital Overview | Metric | June 30, 2025 (USD Millions) | December 31, 2024 (USD Millions) | Change | | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 340.4 | 391.8 | Decrease 51.4 | | Total Current Assets | 774.5 | 723.6 | Increase 50.9 | | Total Current Liabilities | 502.9 | 448.0 | Increase 54.9 | - The decrease in cash and bank balances is primarily due to increased inventory for product manufacturing, purchases of fixed assets to increase capacity, development projects, and normal working capital requirements in the first half of the year[35](index=35&type=chunk) [10. Cash Flows](index=17&type=section&id=10.%20Cash%20Flows) For the six months ended June 30, 2025, net cash inflow from operating activities increased to $29.7 million, while net cash outflow from investing activities rose to $71.5 million, and net cash outflow from financing activities was $9.7 million Cash Flows Comparison | Metric | H1 2025 (USD Millions) | H1 2024 (USD Millions) | Change | | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | 29.7 | 11.7 | Increase 18.0 | | Net Cash Used in Investing Activities | (71.5) | (38.3) | Increase outflow 33.2 | | Net Cash Used in Financing Activities | (9.7) | (5.7) | Increase outflow 4.0 | - The increase in net cash flow from operating activities is primarily due to higher delivery volumes during the reporting period[36](index=36&type=chunk) - The increase in net cash used in investing activities primarily includes purchases of financial assets, purchases of fixed assets to increase capacity, and development projects[36](index=36&type=chunk) [11. Non-IFRS Measures](index=18&type=section&id=11.%20Non-IFRS%20Measures) The Group uses Adjusted Profit and Adjusted EBITDA as non-IFRS measures to supplement IFRS financial statements, providing additional information for investors and management Non-IFRS Measures Adjustments | Metric | H1 2025 (USD Thousands) | H1 2024 (USD Thousands) | | :--- | :--- | :--- | | Profit for the Period | 64,966 | 35,607 | | Add back: Listing Expenses | — | 2,068 | | **Adjusted Profit for the Period** | **64,966** | **37,675** | | Add back: Finance Costs | 1,970 | 2,688 | | Add back: Income Tax Expense | 17,142 | 8,461 | | Add back: Depreciation and Amortization | 24,315 | 18,896 | | Less: Interest Income | (6,882) | (3,816) | | **Adjusted EBITDA for the Period** | **101,511** | **63,904** | [12. Key Financial Ratios](index=19&type=section&id=12.%20Key%20Financial%20Ratios) As of June 30, 2025, the Group's gross margin, net profit margin, return on equity, and return on total assets all improved, indicating enhanced profitability, while liquidity ratios slightly decreased Key Financial Ratios Comparison | Metric | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Margin | 36.2% | 34.4% | Increase 1.8 percentage points | | Net Profit Margin | 10.9% | 7.5% | Increase 3.4 percentage points | | Return on Equity | 8.2% | 7.2% | Increase 1.0 percentage point | | Return on Total Assets | 4.6% | 3.4% | Increase 1.2 percentage points | | Adjusted Profit Margin | 10.9% | 7.9% | Increase 3.0 percentage points | | Adjusted EBITDA Margin | 17.1% | 13.4% | Increase 3.7 percentage points | Liquidity and Leverage Ratios Comparison | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Current Ratio | 1.5 | 1.6 | Decrease 0.1 | | Quick Ratio | 1.0 | 1.2 | Decrease 0.2 | | Leverage Ratio | 0.1 | 0.1 | Remain unchanged | [13. Treasury Policy](index=20&type=section&id=13.%20Treasury%20Policy) The Group manages liquidity risk by utilizing bank overdrafts, borrowings, and long-term leases, aiming to balance funding continuity and flexibility - The Group manages liquidity risk based on expected maturity dates, aiming to maintain a balance between funding continuity and flexibility through the use of bank overdrafts, borrowings, and long-term leases[43](index=43&type=chunk) [14. Pledged Assets](index=20&type=section&id=14.%20Pledged%20Assets) Details regarding pledged assets are available in Note 13 to the condensed consolidated interim financial information - Details of pledged assets are set out in Note 13 to the condensed consolidated interim financial information contained in this interim report[44](index=44&type=chunk) [15. Material Investments](index=20&type=section&id=15.%20Material%20Investments) For the six months ended June 30, 2025, the Group made no material investments - For the six months ended June 30, 2025, the Group made no material investments[45](index=45&type=chunk) [16. Segment Information](index=20&type=section&id=16.%20Segment%20Information) The Group's primary operating decision-maker views the business as a single operating segment, thus no separate segment analysis is presented in the condensed consolidated interim financial information - The primary operating decision-maker views the Group's business as a single operating segment, therefore no separate segment analysis is presented in the condensed consolidated interim financial information[46](index=46&type=chunk) [17. Price Risk](index=20&type=section&id=17.%20Price%20Risk) The Group faces price risk from material cost fluctuations, managed through supplier pricing agreements, competitive bidding, and identifying cost reduction opportunities - Price risk relates to changes in the prices of materials purchased for production, and the company primarily manages this risk by negotiating pricing agreements with key suppliers, competitive bidding, and identifying cost reduction opportunities[47](index=47&type=chunk) [18. Credit Risk](index=21&type=section&id=18.%20Credit%20Risk) The Group's credit risk primarily stems from trade receivables, managed by transacting with highly-rated financial institutions and making appropriate impairment provisions for overdue receivables, resulting in near-zero credit losses - Credit risk primarily arises from financial losses due to counterparties failing to meet their obligations, mainly from operating activities (trade receivables)[49](index=49&type=chunk) - The company's policy is to transact only with highly-rated financial institutions and to make appropriate impairment provisions for overdue receivables, with actual credit losses being almost zero[49](index=49&type=chunk) [19. Interest Rate Risk](index=21&type=section&id=19.%20Interest%20Rate%20Risk) The Group's exposure to market interest rate changes is primarily associated with floating-rate long-term debt, with frequent monitoring indicating no significant losses are anticipated - Interest rate risk is primarily associated with floating-rate long-term debt obligations, and the company frequently monitors interest rates, expecting no significant losses from interest rate risk[50](index=50&type=chunk) [20. Foreign Exchange Rate Risk](index=21&type=section&id=20.%20Foreign%20Exchange%20Rate%20Risk) The Group primarily conducts business in US dollars and therefore does not engage in hedging transactions against foreign currency exchange rate uncertainties - The Group primarily conducts business in US dollars and therefore does not engage in hedging transactions to mitigate future exchange rate uncertainties between specific foreign currencies and the US dollar[51](index=51&type=chunk) [21. Material Acquisitions and Disposals](index=21&type=section&id=21.%20Material%20Acquisitions%20and%20Disposals) For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, consolidated affiliated entities, or associates - For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, consolidated affiliated entities, or associates[52](index=52&type=chunk) [22. Future Plans for Material Investments and Capital Assets](index=21&type=section&id=22.%20Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) As of June 30, 2025, the Group held no material investments and had no future plans for material investments or capital assets, other than those disclosed in this interim report - Other than as disclosed in this interim report, as of June 30, 2025, the Group held no material investments and had no future plans for material investments or capital assets[53](index=53&type=chunk) [23. Bank Loans and Other Borrowings](index=22&type=section&id=23.%20Bank%20Loans%20and%20Other%20Borrowings) As of June 30, 2025, the Group held $45 million in floating-rate borrowings, $3.4 million in fixed-rate borrowings, and $14.9 million in lease liabilities, all secured by assets and in compliance with covenants - As of June 30, 2025, the Group had **$45 million** in floating-rate borrowings, **$3.4 million** in fixed-rate borrowings, and **$14.9 million** in lease liabilities[55](index=55&type=chunk) - Borrowings are secured by a security interest in substantially all of the Group's tangible and intangible assets and are in compliance with all covenants[138](index=138&type=chunk) Borrowings Maturity Profile | Term | June 30, 2025 (USD Thousands) | December 31, 2024 (USD Thousands) | | :--- | :--- | :--- | | Within 1 year | 15,532 | 15,532 | | Over 1 year and less than 2 years | 30,548 | 8,048 | | Over 2 years and less than 5 years | 1,150 | 31,751 | | Over 5 years | 1,218 | 617 | | **Total** | **48,448** | **55,948** | [24. Contingent Liabilities](index=22&type=section&id=24.%20Contingent%20Liabilities) As of June 30, 2025, significant contingent liabilities related to ongoing product liability claims are included in accrued product liability, with management believing final outcomes will not materially adversely affect financial position - As of June 30, 2025, significant contingent liabilities related to ongoing product liability claims are included in accrued product liability[56](index=56&type=chunk) - Management believes that the ultimate resolution of these matters will not have a material adverse effect on the Group's consolidated financial position, operating results, or liquidity, and adequate provisions have been made to cover potential losses[148](index=148&type=chunk) [25. Employees and Remuneration](index=22&type=section&id=25.%20Employees%20and%20Remuneration) As of June 30, 2025, the Group had 2,748 employees, with 55.6% in product line manufacturing, and recognized $7.1 million in special cash awards for key employees Employee Count by Function (As of June 30, 2025) | Function | Employee Count | Percentage of Total Employees | | :--- | :--- | :--- | | Product Line Manufacturing | 1,527 | 55.6% | | Product Development | 454 | 16.5% | | Cirrus Services | 399 | 14.5% | | General and Administrative | 171 | 6.2% | | Sales and Marketing | 162 | 5.9% | | Facilities Management | 35 | 1.3% | | **Total** | **2,748** | **100.0%** | - As of June 30, 2025, the company had a total of **2,748 employees**, comprising **2,672 full-time** and **76 part-time employees**, predominantly located in the United States[57](index=57&type=chunk) - The company recognized and paid **$7.1 million** in special cash award expenses to acknowledge key employees for their contributions to value creation prior to the listing date[60](index=60&type=chunk) [26. Future Plans and Outlook](index=23&type=section&id=26.%20Future%20Plans%20and%20Outlook) In 2025, the company will focus on improving production consistency to balance annual performance, while future plans include continuous product upgrades, ecosystem expansion, supply chain optimization, global market expansion, and services for non-pilots - In 2025, the company is focused on improving production line consistency and predictability to balance annual performance[61](index=61&type=chunk) - The company plans to continuously focus on product improvement, driving model upgrades and generational changes, and configuring aircraft with new technologies and designs to maintain industry leadership[61](index=61&type=chunk) - Key strategies include building an ecosystem (new maintenance programs, aircraft management solutions, customer service), improving flight training solutions, advancing and expanding the aircraft and service portfolio, optimizing the supply chain, expanding global markets, and developing private aviation services for non-pilots[61](index=61&type=chunk)[66](index=66&type=chunk) [27. Events After Reporting Period](index=24&type=section&id=27.%20Events%20After%20Reporting%20Period) Post-period, the Group entered a $9.48 million term note agreement with Wells Fargo on July 1, 2025, at 7.5% interest, reduced to 2.5% via a rate buy-down, and repaid existing debt; the "Big and Beautiful Act" signed July 4, 2025, will affect tax deduction timing but not total tax expense - On July 1, 2025, the Group entered into a **$9,480,000** term note agreement with Wells Fargo at an annual interest rate of **7.5%**, reduced to **2.5%** through an interest rate buy-down agreement, with the loan maturing on June 30, 2028, and proceeds used to repay existing borrowings[63](index=63&type=chunk)[150](index=150&type=chunk) - On July 10, 2025, the Group repaid **$9,480,000** of outstanding debt, along with interest, previously held under Wells Fargo financing, to optimize capital structure and reduce financing costs[63](index=63&type=chunk)[150](index=150&type=chunk) - The "Big and Beautiful Act" was signed into law on July 4, 2025, which will affect the timing of certain tax deductions (including depreciation expense and R&D expenditures), but the total tax expense is not expected to be materially impacted, though it will affect the allocation of current and deferred expenses[64](index=64&type=chunk)[150](index=150&type=chunk) [28. Interim Dividend](index=24&type=section&id=28.%20Interim%20Dividend) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board of Directors 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)[65](index=65&type=chunk) [Corporate Governance and Other Information](index=25&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Corporate Governance Practices](index=25&type=section&id=Corporate%20Governance%20Practices) The company is committed to maintaining high corporate governance standards, having adopted and complied with the Corporate Governance Code in Appendix C1 of the Listing Rules - The company has adopted and complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules during the relevant period to maintain a high level of corporate governance[69](index=69&type=chunk) [Standard Code for Securities Transactions by Directors](index=25&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The company adopted the Standard Code and Securities Policy from Appendix C3 of the Listing Rules as a code of conduct for directors and senior management's securities transactions, with all directors confirming strict compliance - The company has adopted the Standard Code set out in Appendix C3 of the Listing Rules and a securities policy, applicable to all directors and senior management, with all directors confirming strict compliance[70](index=70&type=chunk) [Audit, Risk, and Compliance Committee](index=25&type=section&id=Audit%2C%20Risk%2C%20and%20Compliance%20Committee) The Audit, Risk, and Compliance Committee, comprising three directors, reviews and monitors the Group's financial reporting, risk management, and internal control systems, and has reviewed this interim report and unaudited condensed consolidated financial statements - The Audit, Risk, and Compliance Committee, comprising Mr. LIU Liang, Mr. LIU Zhongwen (Chairman), and Ms. Ferheen MAHOMED, is primarily responsible for reviewing and monitoring the Group's financial reporting procedures, risk management, and internal control systems[71](index=71&type=chunk) - The Committee has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and this interim report, deeming them prepared in accordance with applicable accounting standards and relevant requirements, with sufficient disclosures[72](index=72&type=chunk) [Other Board Committees](index=26&type=section&id=Other%20Board%20Committees) In addition to the Audit, Risk, and Compliance Committee, the company has established a Nomination Committee and a Remuneration Committee, with their written terms of reference defined according to the Listing Rules - The company has established a Nomination Committee and a Remuneration Committee, with their written terms of reference defined in accordance with the Listing Rules[73](index=73&type=chunk) [Interests and Short Positions of Directors and Chief Executive in Shares, Underlying Shares, and Debentures of the Company or its Associated Corporations](index=26&type=section&id=Interests%20and%20Short%20Positions%20of%20Directors%20and%20Chief%20Executive%20in%20Shares%2C%20Underlying%20Shares%2C%20and%20Debentures%20of%20the%20Company%20or%20its%20Associated%20Corporations) As of June 30, 2025, no directors or chief executives held disclosable interests and/or short positions in the shares, underlying shares, or debentures of the company or its associated corporations - As of June 30, 2025, no directors or chief executives of the company held any interests and/or short positions in the shares, underlying shares, or debentures of the company that were required to be notified to the company and the Stock Exchange[74](index=74&type=chunk) [Rights of Directors to Acquire Shares or Debentures](index=26&type=section&id=Rights%20of%20Directors%20to%20Acquire%20Shares%20or%20Debentures) During the reporting period, neither the company nor any of its subsidiaries was party to any arrangement enabling directors or their spouses or children under 18 to acquire benefits through shares or debentures - During the reporting period, neither the company nor any of its subsidiaries was a party to any arrangement that would enable directors or their spouses or children under the age of 18 to acquire benefits through the acquisition of shares or debentures of the company or any other corporation[75](index=75&type=chunk) [Interests and Short Positions of Substantial Shareholders in Shares and Underlying Shares of the Company](index=27&type=section&id=Interests%20and%20Short%20Positions%20of%20Substantial%20Shareholders%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) As of June 30, 2025, AVIC General Aircraft Hong Kong, AVIC General Aircraft, and AVIC held 84.97% equity interest in the company, with AVIC General Aircraft Hong Kong selling approximately 4.78% of shares during the period Substantial Shareholder Holdings (As of June 30, 2025) | Shareholder Name | Nature of Interest | Number of Shares or Securities Held | Approximate Percentage of Interest | | :--- | :--- | :--- | :--- | | AVIC General Aircraft Hong Kong | Beneficial Owner | 310,963,318 | 84.97% | | AVIC General Aircraft | Interest in Controlled Corporation | 310,963,318 | 84.97% | | AVIC | Interest in Controlled Corporation | 310,963,318 | 84.97% | - During the relevant period, controlling shareholder AVIC General Aircraft Hong Kong sold **17,500,000 shares** through block trades, representing approximately **4.78%** of the company's total issued share capital[78](index=78&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=28&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities, and as of June 30, 2025, the company held no treasury shares - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[80](index=80&type=chunk) - As of June 30, 2025, the company held no treasury shares[81](index=81&type=chunk) [Changes in Directors and Chief Executive](index=28&type=section&id=Changes%20in%20Directors%20and%20Chief%20Executive) Effective August 26, 2025, Mr. LIU Liang ceased to be a Remuneration Committee member, Mr. LIU Zhongwen ceased to be a Nomination Committee member, and Ms. Ferheen MAHOMED was appointed to the Nomination Committee and ceased to be a Remuneration Committee member - Effective August 26, 2025, Mr. LIU Liang, a non-executive director, ceased to be a member of the Remuneration Committee[87](index=87&type=chunk) - Effective August 26, 2025, Mr. LIU Zhongwen, an independent non-executive director, ceased to be a member of the Nomination Committee[87](index=87&type=chunk) - Effective August 26, 2025, Ms. Ferheen MAHOMED, an independent non-executive director, was appointed as a member of the Nomination Committee and ceased to be a member of the Remuneration Committee[87](index=87&type=chunk) [Material Litigation](index=28&type=section&id=Material%20Litigation) During the reporting period, the company was not involved in any material litigation or arbitration, and directors were unaware of any pending or threatened material litigation or claims against the Group - During the reporting period, the company was not involved in any material litigation or arbitration[83](index=83&type=chunk) - The directors were also unaware of any pending or threatened material litigation or claims against the Group during the reporting period[84](index=84&type=chunk) [Public Float](index=28&type=section&id=Public%20Float) During the reporting period, the company's public float remained in compliance with the exemption granted by the Stock Exchange - During the reporting period, the company's public float remained in compliance with the exemption granted by the Stock Exchange from strict compliance with the public float requirement under Rule 8.08(1)(d) of the Listing Rules[85](index=85&type=chunk) [Continuing Disclosure Obligations under the Listing Rules](index=28&type=section&id=Continuing%20Disclosure%20Obligations%20under%20the%20Listing%20Rules) Other than as disclosed in this interim report, the company has no other disclosure obligations under Rules 13.20, 13.21, and 13.22 of the Listing Rules - Other than as disclosed in this interim report, the company has no other disclosure obligations under Rules 13.20, 13.21, and 13.22 of the Listing Rules[86](index=86&type=chunk) [Use of Net Proceeds from Listing](index=29&type=section&id=Use%20of%20Net%20Proceeds%20from%20Listing) The company listed on July 12, 2024, with net proceeds of approximately HKD 1,396.03 million from the global offering; as of June 30, 2025, HKD 442.72 million was utilized for innovation, product enhancement, production efficiency, and service ecosystem expansion, with the remaining HKD 953.31 million to be used as planned - The company was listed on the Stock Exchange through a global offering of ordinary shares on July 12, 2024, with net proceeds of approximately **HKD 1,396.03 million**[89](index=89&type=chunk) Use of Net Proceeds from Listing (As of June 30, 2025) | Intended Use | Percentage of Total Net Proceeds | Amount of Net Proceeds Utilized (HKD Millions) | Unutilized Amount (HKD Millions) | Expected Time of Use | | :--- | :--- | :--- | :--- | :--- | | Innovation, Product Enhancement, and R&D | 30.0% | 246.48 | 172.33 | Before December 31, 2027 | | Improve Production Efficiency and Capacity | 30.0% | 32.18 | 386.63 | Before December 31, 2027 | | Enhance and Expand Service, Sales, and Support Ecosystem | 30.0% | 30.61 | 388.20 | Before December 31, 2027 | | General Working Capital and Other Corporate Purposes | 10.0% | 133.45 | 6.15 | Before December 31, 2025 | | **Total** | **100.0%** | **442.72** | **953.31** | | [Review Report on Condensed Consolidated Interim Financial Information](index=31&type=section&id=Review%20Report%20on%20Condensed%20Consolidated%20Interim%20Financial%20Information) PricewaterhouseCoopers reviewed the Group's condensed consolidated interim financial information for the six months ended June 30, 2025, finding no matters suggesting non-compliance with IAS 34 in all material respects - PricewaterhouseCoopers has reviewed the Group's condensed consolidated interim financial information for the six months ended June 30, 2025, in accordance with International Standard on Review Engagements 2410[95](index=95&type=chunk) - The review concluded that nothing has come to their attention that causes them to believe the Group's interim financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34 "Interim Financial Reporting"[96](index=96&type=chunk) [Condensed Consolidated Statement of Profit or Loss](index=33&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) This statement presents the condensed consolidated profit or loss for the six months ended June 30, 2025, showing revenue of $594.5 million, profit for the period of $65 million, and basic and diluted earnings per share of $0.18 Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Metric | 2025 (USD Thousands) | 2024 (USD Thousands) | | :--- | :--- | :--- | | Revenue | 594,488 | 475,386 | | Cost of Sales | (379,485) | (311,945) | | Gross Profit | 215,003 | 163,441 | | Operating Profit | 84,078 | 46,756 | | Profit Before Income Tax | 82,108 | 44,068 | | Profit for the Period | 64,966 | 35,607 | | Basic and Diluted Earnings Per Share | 0.18 | 0.11 | [Condensed Consolidated Statement of Comprehensive Income](index=34&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) This statement presents the condensed consolidated comprehensive income for the six months ended June 30, 2025, with profit for the period of $64.966 million and other comprehensive income of $4 thousand, resulting in total comprehensive income of $64.97 million Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Metric | 2025 (USD Thousands) | 2024 (USD Thousands) | | :--- | :--- | :--- | | Profit for the Period | 64,966 | 35,607 | | Other Comprehensive Income/(Loss) | 4 | (1) | | **Total Comprehensive Income for the Period** | **64,970** | **35,606** | [Condensed Consolidated Statement of Financial Position](index=35&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement presents the condensed consolidated financial position as of June 30, 2025, with total assets of $1,437.1 million, total liabilities of $626.8 million, and total equity of $810.3 million Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | June 30, 2025 (USD Thousands) | December 31, 2024 (USD Thousands) | | :--- | :--- | :--- | | **Assets** | | | | Total Non-Current Assets | 662,610 | 639,631 | | Total Current Assets | 774,462 | 723,590 | | **Total Assets** | **1,437,072** | **1,363,221** | | **Equity and Liabilities** | | | | Total Equity | 810,321 | 781,951 | | Total Non-Current Liabilities | 123,900 | 133,236 | | Total Current Liabilities | 502,851 | 448,034 | | **Total Liabilities** | **626,751** | **581,270** | | **Total Equity and Liabilities** | **1,437,072** | **1,363,221** | [Condensed Consolidated Statement of Changes in Equity](index=37&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This statement presents the condensed consolidated changes in equity for the six months ended June 30, 2025, with opening equity of $781.951 million, profit for the period of $64.966 million, and declared dividends of $36.6 million, resulting in closing equity of $810.321 million Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Metric | June 30, 2025 (USD Thousands) | June 30, 2024 (USD Thousands) | | :--- | :--- | :--- | | Opening Balance | 781,951 | 473,376 | | Profit for the Period | 64,966 | 35,607 | | Other Comprehensive Income/(Loss) | 4 | (1) | | Dividends Declared | (36,600) | — | | **Closing Balance** | **810,321** | **508,982** | [Condensed Consolidated Statement of Cash Flows](index=38&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This statement presents the condensed consolidated cash flows for the six months ended June 30, 2025, showing net cash inflow from operating activities of $29.715 million, net cash outflow from investing activities of $71.467 million, and net cash outflow from financing activities of $9.674 million, leading to a net decrease in cash and cash equivalents of $51.426 million Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Metric | 2025 (USD Thousands) | 2024 (USD Thousands) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 29,715 | 11,726 | | Net Cash Used in Investing Activities | (71,467) | (38,336) | | Net Cash Used in Financing Activities | (9,674) | (5,680) | | Net Decrease in Cash and Cash Equivalents | (51,426) | (32,290) | | Cash and Cash Equivalents at End of Period | 340,411 | 214,579 | [Notes to the Condensed Consolidated Interim Financial Information](index=40&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) [1. General Information](index=40&type=section&id=1.%20General%20Information) Cirrus Aircraft Co., Ltd. was incorporated in the Cayman Islands on December 13, 2019, listed on the Stock Exchange on July 12, 2024, and primarily engages in manufacturing and selling piston aircraft and single-engine turboprops, with AVIC as its ultimate controlling company - The company was incorporated in the Cayman Islands on **December 13, 2019**, and listed on The Stock Exchange of Hong Kong Limited on **July 12, 2024**[109](index=109&type=chunk)[111](index=111&type=chunk) - The Group primarily engages in the manufacturing and sale of piston aircraft (SR2X series) and single-engine turboprops (Vision Jet), and provides related services such as aviation parts sales, extended warranty contracts, maintenance, and training through Cirrus Services[109](index=109&type=chunk) - The company's ultimate controlling company is Aviation Industry Corporation of China, Ltd. (AVIC)[109](index=109&type=chunk) [2. Basis of Preparation](index=40&type=section&id=2.%20Basis%20of%20Preparation) The condensed consolidated interim financial information is prepared in accordance with IAS 34 "Interim Financial Reporting" and Listing Rules, applying consistent accounting policies with the 2024 annual financial statements, and presented in US dollars - The condensed consolidated interim financial information has been prepared in accordance with 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[112](index=112&type=chunk) - The accounting policies applied are consistent with those described in the Group's consolidated financial statements and are presented in US dollars[114](index=114&type=chunk)[115](index=115&type=chunk) - The Group plans to adopt newly issued but not yet effective standards and amendments to standards (such as IFRS 18 "Presentation and Disclosure in Financial Statements") when they become effective, with no significant impact expected on financial performance and position[117](index=117&type=chunk) [3. Estimates](index=42&type=section&id=3.%20Estimates) The significant judgments made by management in applying accounting policies and the key sources of estimation uncertainty in preparing the condensed consolidated interim financial information are consistent with those applied in the 2024 annual financial statements - The significant judgments made by management in applying the accounting policies and the key sources of estimation uncertainty in preparing the condensed consolidated interim financial information are the same as those applied in the consolidated financial statements for the year ended December 31, 2024[118](index=118&type=chunk) [4. Seasonality of Operations](index=42&type=section&id=4.%20Seasonality%20of%20Operations) The Group's business faces seasonal weather conditions, typically leading to lower revenue in the first half; however, for the six months ended June 30, 2025, the company aimed to smooth this seasonal impact by improving production line consistency - The Group faces seasonal weather conditions, typically holding more finished goods or aircraft inventory during summer months, which usually leads to lower revenue in the first half of the financial year[119](index=119&type=chunk) - For the six months ended June 30, 2025, the company has been working to smooth the usual seasonality between the first and second halves of the year by driving production line consistency and predictability[119](index=119&type=chunk) [5. Revenue and Segment Information](index=42&type=section&id=5.%20Revenue%20and%20Segment%20Information) The Group's primary operating decision-maker views the business as a single operating segment, thus no separate segment analysis is presented; for the six months ended June 30, 2025, aircraft sales revenue was $498.3 million, and Cirrus Services and other revenue was $96.209 million - The company's CEO and key management are considered the primary operating decision-makers and view the Group's business as a single operating segment, therefore no separate segment analysis is presented in the condensed consolidated interim financial information[120](index=120&type=chunk) - Over **90%** of the Group's revenue and operating profit are derived from transactions registered and completed in the United States, thus no geographical information is presented[120](index=120&type=chunk) Revenue Source Details (For the six months ended June 30) | Revenue Source | 2025 (USD Thousands) | 2024 (USD Thousands) | | :--- | :--- | :--- | | Aircraft | 498,279 | 397,923 | | Cirrus Services and Other | 96,209 | 77,463 | | **Total** | **594,488** | **475,386** | [6. Expenses by Nature](index=44&type=section&id=6.%20Expenses%20by%20Nature) For the six months ended June 30, 2025, the Group's total expenses were $513.085 million, including $155.703 million in employee benefits and $192.9 million in raw materials, with insurance and product liability expenses turning positive from a negative value in 2024 Expenses by Nature (For the six months ended June 30) | Expense Category | 2025 (USD Thousands) | 2024 (USD Thousands) | | :--- | :--- | :--- | | Employee Benefit Expenses | 155,703 | 136,735 | | Raw Materials | 192,900 | 154,299 | | Insurance and Product Liability | 6,296 | (1,374) | | Depreciation of Property, Plant and Equipment | 11,730 | 9,655 | | Amortization of Intangible Assets | 10,458 | 7,074 | | Service Expenses | 48,680 | 48,360 | | Research | 8,129 | 7,778 | | **Total Cost of Sales, Selling and Marketing, General and Administrative Expenses** | **513,085** | **429,230** | - The insurance and product liability balance for the period ended June 30, 2024, included a one-time derecognition of a recoverable balance of approximately **$7 million**, which was actually determined to be recoverable during the period[123](index=123&type=chunk) [7. Income Tax](index=45&type=section&id=7.%20Income%20Tax) The Group's US and UK subsidiaries are subject to corporate income tax, while the Cayman Islands company is exempt; for the six months ended June 30, 2025, income tax expense was $17.142 million, comprising $23.573 million in current income tax and a negative $6.431 million in deferred income tax - The company is incorporated in the Cayman Islands and is not subject to corporate income tax[125](index=125&type=chunk) - The Group's US subsidiaries are subject to US federal income tax (provided at an estimated **21%** of taxable profit) and state income tax[126](index=126&type=chunk) - The Group's UK subsidiaries are subject to UK corporate income tax (provided at an estimated **19%** of taxable profit)[127](index=127&type=chunk) Income Tax Expense Details (For the six months ended June 30) | Metric | 2025 (USD Thousands) | 2024 (USD Thousands) | | :--- | :--- | :--- | | Current Income Tax | 23,573 | 9,880 | | Deferred Income Tax | (6,431) | (1,419) | | **Total** | **17,142** | **8,461** | [8. Earnings Per Share](index=46&type=section&id=8.%20Earnings%20Per%20Share) For the six months ended June 30, 2025, profit attributable to owners of the company was $64.966 million, with basic earnings per share of $0.18; diluted earnings per share equal basic earnings per share due to no dilutive instruments Earnings Per Share Calculation (For the six months ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company (USD Thousands) | 64,966 | 35,607 | | Weighted Average Number of Ordinary Shares | 365,988,818 | 310,963,318 | | **Basic Earnings Per Share (USD)** | **0.18** | **0.11** | - As the company had no dilutive instruments for the periods ended June 30, 2024 and 2025, the Group's diluted earnings per share are equal to its basic earnings per share[131](index=131&type=chunk) [9. Dividends](index=46&type=section&id=9.%20Dividends) A resolution passed at the AGM on June 20, 2025, approved a dividend of $0.1 per share for the year ended December 31, 2024, totaling approximately $36.6 million, paid on July 14, 2025; no interim dividends were declared for the six months ended June 30, 2025 - A resolution was passed by the company's shareholders on June 20, 2025, to distribute a dividend of **$0.1 per share** for the year ended December 31, 2024, totaling approximately **$36,600,000**, which was paid on July 14, 2025[132](index=132&type=chunk) - No dividends were declared for the six months ended June 30, 2025 (June 30, 2024: nil)[133](index=133&type=chunk) [10. Property, Plant and Equipment](index=47&type=section&id=10.%20Property%2C%20Plant%20and%20Equipment) As of June 30, 2025, the net book value of property, plant, and equipment was $238.052 million, with additions of $14.231 million and depreciation expense of $11.73 million during the period Net Book Value of Property, Plant and Equipment (As of June 30) | Metric | 2025 (USD Thousands) | 2024 (USD Thousands) | | :--- | :--- | :--- | | Opening Net Book Value | 233,049 | 197,933 | | Additions | 14,231 | 19,980 | | Depreciation Expense | (11,730) | (9,655) | | **Closing Net Book Value** | **238,052** | **207,457** | [11. Goodwill and Intangible Assets](index=48&type=section&id=11.%20Goodwill%20and%20Intangible%20Assets) As of June 30, 2025, the net book value of intangible assets was $276.506 million, and goodwill was $115.923 million, with additions of $21.263 million and amortization expense of $10.458 million for intangible assets during the period Net Book Value of Goodwill and Intangible Assets (As of June 30) | Metric | Intangible Assets (USD Thousands) | Goodwill (USD Thousands) | Total (USD Thousands) | | :--- | :--- | :--- | :--- | | Opening Net Book Value | 265,701 | 115,923 | 381,624 | | Additions | 21,263 | — | 21,263 | | Amortization Expense | (10,458) | — | (10,458) | | **Closing Net Book Value** | **276,506** | **115,923** | **392,429** | [12. Share Capital and Share Premium](index=49&type=section&id=12.%20Share%20Capital%20and%20Share%20Premium) As of June 30, 2025, the company's issued share capital comprised 365,988,818 shares with a par value of $182.995 million and share premium of $123.72 million, totaling $306.715 million, after a $36.6 million reduction in share premium due to declared dividends Share Capital and Share Premium (As of June 30) | Metric | Number of Shares | Par Value (USD Thousands) | Share Premium (USD Thousands) | Total (USD Thousands) | | :--- | :--- | :--- | :--- | | As of December 31, 2024 | 365,988,818 | 182,995 | 160,320 | 343,315 | | Dividends Declared | — | — | (36,600) | (36,600) | | **As of June 30, 2025** | **365,988,818** | **182,995** | **123,720** | **306,715** | [13. Borrowings](index=49&type=section&id=13.%20Borrowings) As of June 30, 2025, the Group's total borrowings were $48.448 million, including long-term bank and other borrowings, all secured by substantially all tangible and intangible assets and in compliance with covenants Borrowings Composition (As of June 30) | Category | June 30, 2025 (USD Thousands) | December 31, 2024 (USD Thousands) | | :--- | :--- | :--- | | Long-term Bank Borrowings | 45,000 | 52,500 | | Long-term Other Borrowings | 3,448 | 3,448 | | Less: Current Portion | (15,532) | (15,532) | | **Non-Current Borrowings** | **32,916** | **40,416** | | **Current Borrowings** | **15,532** | **15,532** | | **Total Borrowings** | **48,448** | **55,948** | - The Group's borrowings from commercial banks bear interest at the average 30-day Secured Overnight Financing Rate plus **1.85%** and are secured by a security interest in substantially all of the Group's tangible and intangible assets[138](index=138&type=chunk) - The Group's borrowings from local government entities bear interest at **3%** per annum and are secured by related property; as of June 30, 2025, the Group was in compliance with all borrowing covenants[138](index=138&type=chunk) [14. Financial Instruments](index=51&type=section&id=14.%20Financial%20Instruments) As of June 30, 2025, net trade receivables were $8.479 million, with current to 60-day aging accounting for $9.132 million; total trade payables were $76.885 million, with current to 30-day aging accounting for $69.443 million Trade Receivables Aging Analysis (As of June 30) | Aging | June 30, 2025 (USD Thousands) | December 31, 2024 (USD Thousands) | | :--- | :--- | :--- | | Current to 60 days | 9,132 | 11,904 | | 61 to 90 days | 927 | 1,185 | | 91 to 120 days | 419 | — | | Over 120 days | 679 | 999 | | **Total Trade Receivables** | **11,157** | **14,088** | | Less: Impairment Provision | (2,678) | (2,673) | | **Net Trade Receivables** | **8,479** | **11,415** | Trade Payables Aging Analysis (As of June 30) | Aging | June 30, 2025 (USD Thousands) | December 31, 2024 (USD Thousands) | | :--- | :--- | :--- | | Current to 30 days | 69,443 | 50,462 | | 31 to 60 days | 4,800 | — | | 61 to 120 days | 2,642 | — | | Over 120 days | — | 277 | | **Total** | **76,885** | **50,739** | [15. Capital Commitments](index=52&type=section&id=15.%20Capital%20Commitments) As of June 30, 2025, the Group's capital commitments for property, plant, and equipment amounted to approximately $3 million - As of June 30, 2025, the Group's capital commitments for property, plant, and equipment amounted to approximately **$3 million**[142](index=142&type=chunk) [16. Related Party Transactions](index=52&type=section&id=16.%20Related%20Party%20Transactions) The Group has significant related party transactions with its controlling shareholder AVIC and its subsidiaries (e.g., AVIC General Aircraft, AVIC General Aircraft Hong Kong) and AVIC's associate Continental Aerospace Technologies, Inc., primarily involving engine and component procurement, aircraft product provision, and technical support services - The Group has related party transactions with its controlling shareholder AVIC, AVIC General Aircraft, AVIC General Aircraft Hong Kong, and their subsidiaries (e.g., AVIC General Aircraft South China, AVIC General Aircraft Services, AVIC General Aircraft Zhejiang), as well as AVIC's associate Continental Aerospace Technologies, Inc.[143](index=143&type=chunk)[144](index=144&type=chunk) Significant Transactions with Related Parties (For the six months ended June 30) | Transaction Type | Related Party | 2025 (USD Thousands) | 2024 (USD Thousands) | | :--- | :--- | :--- | :--- | | Engine and Component Procurement | Continental | 22,607 | 21,542 | | Provision of Aircraft Products | AVIC General Aircraft Services | 592 | 1,021 | | Provision of Procurement Support and Technical Support Services | AVIC General Aircraft Zhejiang | 121 | 328 | Balances with Related Parties (As of June 30) | Category | June 30, 2025 (USD Thousands) | December 31, 2024 (USD Thousands) | | :--- | :--- | :--- | | Amounts Due from Related Parties | 16,185 | 13,225 | | Amounts Due to Related Parties | (3,081) | (2,439) | [17. Litigation and Contingent Liabilities](index=54&type=section&id=17.%20Litigation%20and%20Contingent%20Liabilities) As of the date of this condensed consolidated interim financial information, the Group faces several product liability claims, but management believes the ultimate resolution will not materially adversely affect its financial position, and adequate provisions have been made - The Group has several claims, mostly product liability cases, but management believes that the ultimate resolution will not have a material adverse effect on the Group's consolidated financial position, operating results, or liquidity[148](index=148&type=chunk) - The Group has made adequate provisions to cover potential losses, including comprehensive liability insurance programs[148](index=148&type=chunk) [18. Events After Reporting Period](index=55&type=section&id=18.%20Events%20After%20Reporting%20Period) Post-period, the Group entered a $9.48 million term note agreement with Wells Fargo on July 1, 2025, with a reduced interest rate of 2.5%, and repaid existing debt; the "Big and Beautiful Act" signed July 4, 2025, will affect tax deduction timing but not total tax expense, classified as non-adjusting events - On July 1, 2025, the Group entered into a **$9,480,000** term note agreement with Wells Fargo at an annual interest rate of **7.5%**, reduced to **2.5%** through an interest rate buy-down agreement, with the loan maturing on June 30, 2028, and proceeds used to repay existing borrowings[150](index=150&type=chunk) - On July 10, 2025, the Group repaid **$9,480,000** of outstanding debt, along with interest, previously held under Wells Fargo financing, to optimize capital structure and reduce financing costs[150](index=150&type=chunk) - The "Big and Beautiful Act" was signed into law on July 4, 2025, which will affect the timing of certain tax deductions, but the total tax expense is not expected to be materially impacted; these events are classified as non-adjusting events[150](index=150&type=chunk)[151](index=151&type=chunk)

Core Viewpoint - The stock of Cirrus Aircraft (02507) has dropped over 8%, currently trading at 55.3 HKD with a transaction volume of 155 million HKD, following the tragic news of Grammy-winning songwriter Brett James' death in a small plane crash involving a Cirrus SR22T aircraft [1] Company Summary - The Cirrus SR22T model is a significant contributor to Cirrus Aircraft's revenue, accounting for over 50% of the company's income from the SR2X series of aircraft between 2021 and 2023 [1] - The Vision Jet contributes approximately 30% to the company's revenue, with the remaining income derived from Cirrus Aircraft's services and other offerings [1]

Market Updates - UBTECH (09880) rose over 4% after signing a global strategic cooperation agreement with Cloud Intelligence Technology on September 21, with initial orders expected to be fulfilled [1] - Changfei Fiber Optics (06869) fell over 2% as shareholders reduced their holdings by a total of 10% in H-shares, with no significant impact on financial data from the hollow-core fiber [1] - Gold stocks mostly increased, with Lingbao Gold (03330) up over 4%, Zhaojin Mining (01818) up over 3%, China Silver Group (00815) up over 4%, and Shandong Gold (01787) up over 3%. The Federal Reserve's interest rate cut is expected to support a fluctuating upward trend in gold prices [1] - Yihuatong (02402) surged over 18% after partnering with Toyota to establish a fuel cell company and announcing the termination of the acquisition of Xuyang Hydrogen Energy [1] - WuXi AppTec (02268) increased over 6% after finalizing a subscription agreement that will raise WuXi Biologics' stake to over 50% [1] - Hong Kong Broadband (01310) dropped over 3% after announcing a share placement by its controlling shareholder, China Mobile Hong Kong, to restore public shareholding [1] - Huiju Technology (01729) rose over 10% following a strategic cooperation agreement with OpenAI to develop a revolutionary AI device for consumers [1] Shipping Sector - Shipping stocks experienced significant declines, with China Merchants Energy (01138) down over 6%, Seaspan (01308) down over 5%, Orient Overseas International (00316) down over 4%, and China Merchants Industry Holdings (01919) down over 4%. The Shanghai Shipping Exchange reported weak demand for Chinese export container transport, leading to continued adjustments in ocean freight rates [2] US Market Highlights - Pony.ai (PONY.US) increased by 18.55% as the CFO announced expectations to achieve key profit targets by early 2026 [3] - FedEx (FDX.US) rose 2.32% with projected revenue growth of up to 6% this year, exceeding analyst forecasts [3] - JD.com (JD.US) saw a 0.86% increase, with the iPhone 17 series achieving record sales within the first minute of pre-sale [3] - XPeng Motors (XPEV.US) rose 1.74%, reporting a 137% year-on-year increase in overseas deliveries from January to August [3] - ZTO Express (ZTO.US) fell 0.96%, with analysts noting a significant rebound in express delivery prices in August [3] - WeRide (WRD.US) surged 10.23% after its autonomous bus Robobus received Belgium's first federal-level L4 autonomous driving test license [3] - Tesla (TSLA.US) rose 2.21% as Baird upgraded its rating to "outperform," with expectations for significant stock price increases [4] - Apple (AAPL.US) increased by 3.20% following the successful launch of the iPhone 17 series on September 19 [4] - Quantum Song (QSG.US) rose 13.22%, with the chairman announcing a focus on the trendy toy sector [4]