Group 1 - The company Tianhong International Group (02678) announced a share buyback plan [1] - The company will spend HKD 906,000 to repurchase 200,000 shares [1] - The buyback price per share is set at HKD 4.53 [1]

公司名稱： 天虹國際集團有限公司 呈交日期： 2025年10月14日 FF305 翌日披露報表 (股份發行人 ── 已發行股份或庫存股份變動、股份購回及/或在場内出售庫存股份) 表格類別： 股票 狀態： 新提交 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公司GEM證券 上市規則》(「《GEM上市規則》」)第17.27A條作出披露，必須填妥第一章節 。 | 第一章節 | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | 於香港聯交所上市 | 是 | | | 證券代號 (如上市) | 02678 | 說明 | | | | | | A. 已發行股份或庫存股份變動 | | | | | | | | | | | 已發行股份（不包括庫存股份）變動 | 庫存股份變動 | | | | | 事件 | 已發行股份（不包括庫存股份）數 目 | 佔有關事件前的現有已發 行股份（不包括庫 ...

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: 天虹國際集團有限公司 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) | 02678 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 4,000,000,000 | HKD | | 0.1 HKD | | 400,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | 0 | | 本月底結存 | | | 4,000,000,000 | HKD | | 0.1 HKD | | 400,000,000 | 本月底法定/註冊股本總額： HKD 400,0 ...

齐鲁晚报.齐鲁壹点通讯员李晓伟耿悦 在县域高质量发展的进程中，邹平始终是极具辨识度的存在。从传统工业强市到创新驱动标杆，从单一产业支撑到多元集群共进，再到生态与经济协同发 展的生动实践，这座城市始终以主动求变的姿态，在区域竞争中持续迸发活力。 近年来，邹平主动求变、向"新"而行，由内而外"内涵式"发展的生动体现。在邹平，以魏桥创业、创新、三星等一批龙头企业为引领，不断做大做强集群 优势，走出了一条产城融合、绿色转型的典范之路。这正是其发挥自身比较优势，探索走出的差异化、特色化的现代化路径。 强企业善布局多方发力 魏桥轻量化基地轻量化全车身总成项目焊装车间 在魏桥轻量化基地，宏畅轻合金有限公司刚投产的年产20万吨特种轻合金材料车间内，由魏桥创业集团联合中国科学院大学、苏州大学等科研机构共同研 发的高强高韧6系铝合金材料正陆续下线。这种材料兼具重量轻、强度高的特点，较传统铝合金材料强度提升30%，依托该材料铝制箱式半挂车相比传统 型号可实现减重3吨。魏桥创业集团是邹平最大的龙头企业，1998年成立以来，以全球化布局、规模化发展、现代化运营的思路带动了邹平工业发展。 2012年企业首次跻身世界500强，成为山东省首 ...

TEXHONG INTERNATIONAL GROUP LIMITED 天虹國際集團有限公司 (Incorporated in the Cayman Islands with limited liability) ( 於開曼群島註冊成立之有限公司 ) (Stock Code 股份代號: 2678) N OT IF IC ATI ON LET TE R 通 知 信 函 23 September 2025 Dear Non-registered Shareholders(1) , Texhong International Group Limited (the "Company") As a Non-registered Shareholder, if you wish to receive Corporate Communications of the Company in electronic form, you should liaise with your bank(s), broker(s), custodian(s), nominee(s) or HKSCC Nominees Limited thro ...

Dear Registered Shareholders, TEXHONG INTERNATIONAL GROUP LIMITED 天虹國際集團有限公司 (Incorporated in the Cayman Islands with limited liability) ( 於開曼群島註冊成立之有限公司 ) (Stock Code 股份代號: 2678) N OT IF IC ATI ON LET TE R 通 知 信 函 23 September 2025 Texhong International Group Limited (the "Company") – Notice of Publication of the interim report of the Company for the six months ended 30 June 2025 (the "Current Corporate Comm unication(s)") The English and Chinese versions of the Company's Current Corporate Communication(s) ...

[Corporate Information](index=4&type=section&id=Corporate%20Information) This section provides fundamental corporate information for Texhong International Group Limited, including board members, committee structures, and key professional advisors - Executive Directors include Mr. Hong Tianzhu (Chairman), Mr. Zhu Yongxiang (Vice Chairman and CEO), and Mr. Ye Lixin[5](index=5&type=chunk) - Independent Non-executive Directors and Audit Committee members include Mr. Shu Huadong (Chairman), Professor Tao Xiaoming, and Professor Cheng Longdi[5](index=5&type=chunk) - The company's auditor is PricewaterhouseCoopers[10](index=10&type=chunk) - The company's stock code is **2678**[11](index=11&type=chunk) [Condensed Consolidated Income Statement](index=6&type=section&id=Condensed%20Consolidated%20Income%20Statement) For the six months ended June 30, 2025, the company's revenue slightly decreased, but gross profit, operating profit, and profit for the period all achieved significant growth, with basic earnings per share increasing accordingly Key Data from Condensed Consolidated Income Statement (RMB thousands) | Metric | H1 2025 | H1 2024 (Restated) | Change | | :--- | :--- | :--- | :--- | | Revenue | 11,034,056 | 11,243,529 | -1.9% | | Cost of sales | (9,468,405) | (9,763,980) | -3.0% | | Gross profit | 1,565,651 | 1,479,549 | +5.8% | | Operating profit | 661,026 | 614,071 | +7.6% | | Profit before income tax | 573,618 | 368,728 | +55.6% | | Profit for the period | 463,510 | 285,487 | +62.3% | | Profit attributable to owners of the Company | 418,834 | 273,156 | +53.3% | | Basic earnings per share (RMB) | 0.46 | 0.30 | +53.3% | [Condensed Consolidated Statement of Comprehensive Income](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's profit for the period and total comprehensive income both significantly increased year-on-year, primarily driven by the rise in profit for the period Key Data from Condensed Consolidated Statement of Comprehensive Income (RMB thousands) | Metric | H1 2025 | H1 2024 (Restated) | Change | | :--- | :--- | :--- | :--- | | Profit for the period | 463,510 | 285,487 | +62.3% | | Other comprehensive income | 9,568 | 13,847 | -30.9% | | Total comprehensive income for the period | 473,078 | 299,334 | +58.0% | | Attributable to owners of the Company | 430,235 | 284,637 | +51.1% | | Attributable to non-controlling interests | 42,843 | 14,697 | +191.5% | [Condensed Consolidated Balance Sheet](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheet) As of June 30, 2025, the company's total assets and total equity both increased, with current assets rising while non-current assets and non-current liabilities decreased, indicating continuous optimization of the asset-liability structure Key Data from Condensed Consolidated Balance Sheet (RMB thousands) | Metric | June 30, 2025 | December 31, 2024 (Restated) | Change | | :--- | :--- | :--- | :--- | | Non-current assets | 10,162,233 | 10,519,769 | -3.4% | | Current assets | 10,998,145 | 10,270,743 | +7.1% | | **Total assets** | **21,160,378** | **20,790,512** | **+1.8%** | | Equity attributable to owners of the Company | 9,801,535 | 9,455,022 | +3.7% | | Non-controlling interests | 490,606 | 502,048 | -2.3% | | **Total equity** | **10,292,141** | **9,957,070** | **+3.4%** | | Non-current liabilities | 2,157,260 | 3,473,484 | -37.9% | | Current liabilities | 8,710,977 | 7,359,958 | +18.3% | | **Total liabilities** | **10,868,237** | **10,833,442** | **+0.3%** | [Condensed Consolidated Statement of Changes in Equity](index=12&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, the company's total equity increased, primarily due to profit for the period, also reflecting the retrospective impact of accounting policy changes and dividend distributions Key Data from Condensed Consolidated Statement of Changes in Equity (RMB thousands) | Metric | H1 2025 | H1 2024 (Restated) | | :--- | :--- | :--- | | Balance at January 1 (Restated) | 9,957,070 | 9,568,708 | | Profit for the period | 463,510 | 285,487 | | Other comprehensive income | 11,401 | 11,481 | | Dividends paid to non-controlling interests | (54,285) | (130,715) | | Dividends for 2024 | (83,722) | — | | Balance at June 30 | 10,292,141 | 9,737,327 | - The impact of accounting policy changes (Note 3) on the balance at January 1, 2025, was **RMB(180,215) thousands**[22](index=22&type=chunk) [Condensed Consolidated Cash Flow Statement](index=14&type=section&id=Condensed%20Consolidated%20Cash%20Flow%20Statement) For the six months ended June 30, 2025, net cash inflow from operating activities increased, but investment activities shifted from net inflow to net outflow, and net cash outflow from financing activities slightly increased, resulting in a net decrease in cash and cash equivalents Key Data from Condensed Consolidated Cash Flow Statement (RMB thousands) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net cash inflow from operating activities | 2,853,564 | 2,403,440 | | Net cash (outflow) / inflow from investing activities | (206,908) | 903,716 | | Net cash outflow from financing activities | (2,813,665) | (2,800,389) | | Net (decrease) / increase in cash and cash equivalents | (167,009) | 506,767 | | Cash and cash equivalents at end of period | 2,707,872 | 2,674,857 | - Cash outflow for the purchase of property, plant and equipment increased to **RMB401,470 thousands** (2024: RMB369,637 thousands)[24](index=24&type=chunk) - Cash outflow for repayment of borrowings increased to **RMB5,974,485 thousands** (2024: RMB4,881,099 thousands)[25](index=25&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=16&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, covering accounting policies, financial risk management, segment information, changes and composition of various assets and liabilities, tax information, related-party transactions, and subsequent events, offering essential context and details for understanding the financial statements [1. General Information](index=16&type=section&id=1.%20GENERAL%20INFORMATION) Texhong International Group Limited and its subsidiaries primarily manufacture and sell yarn, grey fabric, non-woven fabric, and finished fabric; these unaudited condensed consolidated financial statements are presented in RMB - The Group's principal activities are the manufacturing and sale of yarn, grey fabric, non-woven fabric, and finished fabric[27](index=27&type=chunk) - The Company's shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since December 9, 2004[28](index=28&type=chunk) - These condensed consolidated financial statements are unaudited and presented in **RMB**[29](index=29&type=chunk)[32](index=32&type=chunk) [2. Basis of Preparation](index=17&type=section&id=2.%20BASIS%20OF%20PREPARATION) These condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the HKICPA and should be read in conjunction with the company's annual consolidated financial statements for the year ended December 31, 2024 - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the HKICPA[33](index=33&type=chunk) - They should be read in conjunction with the Company's annual consolidated financial statements for the year ended December 31, 2024[33](index=33&type=chunk) [3. Material Accounting Policies](index=17&type=section&id=3.%20MATERIAL%20ACCOUNTING%20POLICIES) The Group's accounting policies are consistent with the 2024 annual financial statements, except for a retrospective change in the accounting policy for buildings from the revaluation method to the cost method effective January 1, 2025, and the adoption of amended HKAS 21, while the impact of HKFRS 18 is still being assessed - Effective January 1, 2025, the Group changed its accounting policy for owner-occupied buildings from the revaluation method to the cost method to avoid valuation volatility and enhance comparability of financial information, with this change applied retrospectively[39](index=39&type=chunk)[40](index=40&type=chunk) Impact of Change in Accounting Policy for Buildings on H1 2024 Condensed Consolidated Income Statement (RMB thousands) | Metric | As previously reported | Impact of adopting cost model under HKAS 16 | Restated | | :--- | :--- | :--- | :--- | | General and administrative expenses | (600,904) | 3,525 | (597,379) | | Other income | 83,663 | 90 | 83,753 | | Operating profit | 610,456 | 3,615 | 614,071 | | Profit before income tax | 365,113 | 3,615 | 368,728 | | Income tax expense | (82,844) | (397) | (83,241) | | Profit for the period | 282,269 | 3,218 | 285,487 | | Attributable to owners of the Company | 269,938 | 3,218 | 273,156 | | Basic earnings per share (RMB) | 0.29 | 0.01 | 0.30 | Impact of Change in Accounting Policy for Buildings on December 31, 2024 Consolidated Balance Sheet (RMB thousands) | Metric | As previously reported | Impact of adopting cost model under HKAS 16 | Restated | | :--- | :--- | :--- | :--- | | Property, plant and equipment | 8,282,247 | (188,329) | 8,093,918 | | Investment properties | 377,491 | (3,883) | 373,608 | | Other reserves | 1,098,714 | (180,215) | 918,499 | | Deferred income tax liabilities | 155,445 | (11,997) | 143,448 | | Total assets | 20,982,724 | (192,212) | 20,790,512 | | Total equity | 10,137,285 | (180,215) | 9,957,070 | | Total liabilities | 10,845,439 | (11,997) | 10,833,442 | - The Group adopted amendments to HKAS 21 'Lack of Exchangeability', effective January 1, 2025, which did not result in a change in accounting policy[57](index=57&type=chunk) - HKFRS 18 'Presentation and Disclosure in Financial Statements' will be effective January 1, 2027, and is expected to primarily impact the presentation of the consolidated statement of comprehensive income, with the Group still assessing its impact[60](index=60&type=chunk)[62](index=62&type=chunk) [4. Accounting Estimates and Judgements](index=28&type=section&id=4.%20ACCOUNTING%20ESTIMATES%20AND%20JUDGEMENTS) The preparation of condensed consolidated financial statements involves accounting estimates and management judgments, which, except for changes in income tax provision estimates, are consistent with those used in the 2024 annual consolidated financial statements - The key judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty are consistent with those used in the preparation of the annual consolidated financial statements for the year ended December 31, 2024, except for changes in estimates for income tax provisions[65](index=65&type=chunk) [5. Financial Risk Management](index=28&type=section&id=5.%20FINANCIAL%20RISK%20MANAGEMENT) The Group faces various financial risks, including foreign exchange, price, interest rate, credit, and liquidity risks, managed through forward foreign exchange contracts, cross-currency swap contracts, cotton futures, and options contracts, with no significant changes in risk management policies or liquidity risk since the last year-end - The Group's operations are exposed to various financial risks, including foreign exchange risk, price risk, cash flow and fair value interest rate risk, credit risk, and liquidity risk[66](index=66&type=chunk) - To manage foreign exchange risk, interest rate risk, and price risk, the Group enters into forward foreign exchange contracts, cross-currency swap contracts, cotton futures contracts, and cotton option contracts, respectively[66](index=66&type=chunk) - Risk management policies have not changed since the end of the prior year, and there have been no significant changes in the undiscounted contractual cash outflows for financial liabilities[70](index=70&type=chunk)[71](index=71&type=chunk) Financial Assets and Liabilities Measured at Fair Value as of June 30, 2025 (RMB thousands) | | Level 1 | Level 2 | Level 3 | Total | | :--- | :--- | :--- | :--- | :--- | | **Assets** | | | | | | Financial assets at fair value through other comprehensive income | — | 345,669 | — | 345,669 | | Financial assets at fair value through profit or loss | — | — | 17,982 | 17,982 | | Derivative financial instruments | — | 35,984 | — | 35,984 | | **Total assets** | **—** | **381,653** | **17,982** | **399,635** | | **Liabilities** | | | | | | Derivative financial instruments | — | 40,751 | — | 40,751 | | **Total liabilities** | **—** | **40,751** | **—** | **40,751** | [6. Revenue and Segment Information](index=34&type=section&id=6.%20REVENUE%20AND%20SEGMENT%20INFORMATION) The Group's operating segments are categorized by product and geography, with the Executive Directors' Committee serving as the chief operating decision maker; for the six months ended June 30, 2025, revenue from external customers in Asia and America accounted for 89.7% and 9.8% of total revenue, respectively, with segment results assessed based on revenue and operating profit - The chief operating decision maker is the Company's Executive Directors' Committee, and operating segments are classified by product and geographical perspective[80](index=80&type=chunk)[84](index=84&type=chunk) - For the six months ended June 30, 2025, revenue from external customers in Asia and America accounted for **89.7%** and **9.8%** of the Group's total revenue, respectively (H1 2024: 92.4% and 7.2%)[85](index=85&type=chunk) H1 2025 Segment Revenue (from external customers, RMB thousands) | Product Segment | China | Southeast Asia | America | Others | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Yarn | 7,258,636 | 1,341,669 | 192,721 | 144,531 | 8,937,557 | | Fabric and Garment | 1,329,490 | 103,971 | 424,291 | — | 1,857,752 | | Grey Fabric | 137,194 | — | — | — | 137,194 | | Non-woven Fabric | 51,186 | 17,879 | — | — | 69,065 | | Others | 50 | 32,438 | — | — | 32,488 | | **Total Revenue** | **8,776,556** | **1,495,957** | **617,012** | **144,531** | **11,034,056** | H1 2025 Segment Results (RMB thousands) | Product Segment | China | Southeast Asia | America | Others | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Yarn | 235,027 | 325,449 | 17,792 | (28,210) | 549,058 | | Fabric and Garment | 67,563 | 38,241 | 30,842 | — | 136,646 | | Grey Fabric | (12,551) | — | — | — | (12,551) | | Non-woven Fabric | (2,970) | (11,566) | — | — | (14,536) | | Others | (13,333) | 11,086 | — | — | (2,247) | | **Total Segment Results** | **273,736** | **363,210** | **48,634** | **(28,210)** | **657,370** | [7. Expenses by Nature](index=38&type=section&id=7.%20EXPENSES%20BY%20NATURE) This section presents various expense items included in cost of sales, selling and distribution expenses, and general and administrative expenses in the condensed consolidated income statement, with inventory costs being the largest component Major Expense Items (RMB thousands) | Expense Item | H1 2025 | H1 2024 (Restated) | | :--- | :--- | :--- | | Cost of inventories | 7,492,346 | 7,846,768 | | Employee benefit expenses | 1,253,332 | 1,189,609 | | Power and fuel | 741,496 | 723,430 | | Depreciation and amortisation | 474,909 | 493,445 | | Transportation costs | 174,051 | 171,898 | [8. Other Income and Other Losses — Net](index=39&type=section&id=8.%20OTHER%20INCOME%20AND%20OTHER%20LOSSES%20%E2%80%94%20NET) For the six months ended June 30, 2025, the Group's net other income significantly increased, primarily due to growth in subsidy and rental income, while net other losses also substantially rose, mainly impacted by unrealized derivative financial instrument losses and exchange losses Other Income — Net (RMB thousands) | Item | H1 2025 | H1 2024 (Restated) | | :--- | :--- | :--- | | Subsidy income | 107,076 | 72,211 | | Rental income | 36,288 | 26,037 | | Depreciation of investment properties and leased property, plant and equipment | (13,278) | (14,495) | | **Total Other Income — Net** | **130,086** | **83,753** | Other Losses — Net (RMB thousands) | Item | H1 2025 | H1 2024 (Restated) | | :--- | :--- | :--- | | Derivative financial instruments at fair value through profit or loss: realised gains | 73,163 | 75,909 | | Derivative financial instruments at fair value through profit or loss: unrealised losses | (63,394) | (16,963) | | Exchange losses — net | (127,622) | (123,783) | | **Total Other Losses — Net** | **(99,367)** | **(21,116)** | - Subsidy income primarily relates to development incentive policies provided by local governments in Mainland China based on the amount of value-added tax and enterprise income tax paid[100](index=100&type=chunk) - The Group incurred accrued expenses of **RMB3,143 thousands** from returned assets, net of operating costs and related interest[100](index=100&type=chunk) [9. Finance Costs — Net](index=41&type=section&id=9.%20FINANCE%20COSTS%20%E2%80%94%20NET) For the six months ended June 30, 2025, the Group's net finance costs significantly decreased, primarily due to reduced interest expense on borrowings and net exchange gains from financing activities instead of losses Finance Costs — Net (RMB thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Interest expense — borrowings | 177,636 | 240,368 | | Net exchange (gains) / losses arising from financing activities | (35,526) | 20,768 | | Finance costs | 144,953 | 262,619 | | Finance income — interest income from bank deposits | (71,131) | (37,925) | | **Finance Costs — Net** | **73,822** | **224,694** | [10. Income Tax Expense](index=42&type=section&id=10.%20INCOME%20TAX%20EXPENSE) For the six months ended June 30, 2025, income tax expense increased, mainly due to deferred income tax growth, with the Group operating in Mainland China, Hong Kong, Vietnam, and America, enjoying various tax incentives, and assessing Pillar Two income tax risks in Vietnam and Hong Kong as not significant Income Tax Expense (RMB thousands) | Item | H1 2025 | H1 2024 (Restated) | | :--- | :--- | :--- | | Current tax on profit for the period | 65,559 | 75,834 | | Deferred income tax | 44,549 | 7,407 | | **Income Tax Expense** | **110,108** | **83,241** | - Sixteen subsidiaries established in Mainland China obtained High and New Technology Enterprise qualifications, enjoying a preferential tax rate of **15%**[109](index=109&type=chunk) - Vietnamese subsidiaries enjoy a four-year income tax exemption and a 50% tax reduction for the subsequent nine years, and are entitled to a preferential income tax rate of **10%** for fifteen years[110](index=110&type=chunk) - The Group applied the exception from recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes as prescribed by the amendments to HKAS 12[117](index=117&type=chunk) - The Group assessed that the risk of Pillar Two income tax in Vietnam and Hong Kong is not significant, and no current income tax expense was recognised in this regard during the period[121](index=121&type=chunk)[122](index=122&type=chunk) [11. Earnings Per Share](index=46&type=section&id=11.%20EARNINGS%20PER%20SHARE) For the six months ended June 30, 2025, basic earnings per share attributable to owners of the Company increased to RMB0.46 from RMB0.30 in the prior period, with diluted earnings per share being the same as basic earnings per share due to no dilutive shares Earnings Per Share (RMB) | Metric | H1 2025 | H1 2024 (Restated) | | :--- | :--- | :--- | | Basic earnings per share | 0.46 | 0.30 | | Diluted earnings per share | 0.46 | 0.30 | - Profit attributable to owners of the Company was **RMB418,834 thousands** (2024: RMB273,156 thousands)[127](index=127&type=chunk) - The weighted average number of ordinary shares in issue was **918,000 thousands**[127](index=127&type=chunk) [12. Freehold Land](index=47&type=section&id=12.%20FREEHOLD%20LAND) As of June 30, 2025, the net book value of freehold land slightly decreased, primarily due to currency translation differences Net Book Value of Freehold Land (RMB thousands) | Metric | June 30, 2025 | January 1, 2024 | | :--- | :--- | :--- | | Net book value at beginning of period | 104,718 | 109,393 | | Exchange differences on translation | (434) | (231) | | Net book value at end of period | 104,284 | 109,162 | [13. Property, Plant and Equipment](index=48&type=section&id=13.%20PROPERTY%2C%20PLANT%20AND%20EQUIPMENT) As of June 30, 2025, the net book value of property, plant and equipment decreased, mainly due to depreciation, impairment, and the retrospective impact of accounting policy changes, despite new additions during the period Changes in Net Book Value of Property, Plant and Equipment (RMB thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net book value at beginning of period (Restated) | 8,093,918 | 8,299,560 | | Additions | 329,311 | 286,911 | | Transferred to investment properties | (11,811) | (2,339) | | Disposals | (87,585) | (46,018) | | Depreciation expense | (442,950) | (450,957) | | Impairment | (27,590) | (4,153) | | Exchange differences on translation | (4,018) | (146) | | Net book value at end of period | 7,849,275 | 8,082,858 | - As of June 30, 2025, and December 31, 2024, no property, plant and equipment was pledged[132](index=132&type=chunk) - For the six months ended June 30, 2025, no finance costs were capitalised as part of property, plant and equipment (H1 2024: **RMB2,020 thousands**)[133](index=133&type=chunk) [14. Investment Properties](index=49&type=section&id=14.%20INVESTMENT%20PROPERTIES) As of June 30, 2025, investment properties are accounted for at historical cost, with their net book value slightly increasing, primarily located in China and Southeast Asia, generating rental income Changes in Net Book Value of Investment Properties (RMB thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net book value at beginning of period (Restated) | 373,608 | 377,447 | | Transferred from property, plant and equipment | 11,811 | 2,339 | | Transferred from right-of-use assets | 5,101 | 435 | | Depreciation expense | (10,883) | (14,495) | | Exchange differences on translation | (474) | 1,766 | | Net book value at end of period | 379,163 | 367,492 | Amounts Recognized in Profit or Loss for Investment Properties (RMB thousands) | Item | H1 2025 | H1 2024 (Restated) | | :--- | :--- | :--- | | Rental income from operating leases | 25,981 | 26,037 | | Depreciation expense | (10,883) | (14,495) | - Investment properties are located in China and Southeast Asia and are depreciated on a straight-line basis over 5 to 50 years; freehold land is not depreciated[138](index=138&type=chunk) [15. Leases](index=51&type=section&id=15.%20LEASES) As of June 30, 2025, both right-of-use assets and lease liabilities decreased, and total lease cash payments during the period also declined compared to the prior period Right-of-Use Assets (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Land use rights | 1,002,025 | 1,054,072 | | Buildings and warehouses | 120,404 | 138,349 | | Equipment and others | 3,065 | 4,890 | | **Total** | **1,125,494** | **1,197,311** | Lease Liabilities (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current | 47,503 | 48,889 | | Non-current | 108,644 | 131,111 | | **Total** | **156,147** | **180,000** | Lease-Related Amounts Presented in Condensed Consolidated Income Statement (RMB thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Depreciation of right-of-use assets | 32,523 | 40,657 | | Interest expense | 2,843 | 3,503 | | Expense relating to short-term leases | 4,513 | 3,884 | | Expense relating to leases of low-value assets | 14 | 6 | - Total cash payments for leases during the period amounted to **RMB19,421 thousands** (H1 2024: RMB33,441 thousands)[145](index=145&type=chunk) [16. Intangible Assets](index=53&type=section&id=16.%20INTANGIBLE%20ASSETS) As of June 30, 2025, the net book value of intangible assets slightly decreased, primarily due to amortisation expense Changes in Net Book Value of Intangible Assets (RMB thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net book value at beginning of period | 58,095 | 61,756 | | Amortisation expense | (1,831) | (1,831) | | Net book value at end of period | 56,264 | 59,925 | [17. Investments Accounted for Using the Equity Method](index=54&type=section&id=17.%20INVESTMENTS%20ACCOUNTED%20FOR%20USING%20THE%20EQUITY%20METHOD) As of June 30, 2025, the Group's total investments accounted for using the equity method decreased, with a reduction in the share of losses from associates and an increase in the share of profits from joint ventures Investments Accounted for Using the Equity Method (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Associates | 344,743 | 356,675 | | Joint ventures | 5,234 | 4,954 | | **Total** | **349,977** | **361,629** | Amounts Recognized in Condensed Consolidated Income Statement for Investments Accounted for Using the Equity Method (RMB thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Associates | (13,866) | (20,806) | | Joint ventures | 280 | 157 | | **Total** | **(13,586)** | **(20,649)** | - In the Group's share of changes in net assets of associates, the share of losses decreased, and the share of other comprehensive income also decreased[152](index=152&type=chunk) [18. Inventories and Properties Under Development](index=56&type=section&id=18.%20INVENTORIES%20AND%20PROPERTIES%20UNDER%20DEVELOPMENT) As of June 30, 2025, total inventories increased, primarily in raw materials and finished goods, while properties under development also slightly grew, with most land use rights located in Mainland China Inventories (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Raw materials | 3,223,419 | 2,501,852 | | Work in progress | 362,379 | 342,277 | | Finished goods | 2,065,597 | 1,984,565 | | Less: provision for write-down of inventories to net realisable value | (282,379) | (285,587) | | **Total** | **5,369,016** | **4,543,107** | Properties Under Development (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Expected to be completed after 12 months | 160,758 | 261,510 | | Expected to be completed within 12 months | 132,894 | — | | **Total** | **293,652** | **261,510** | | Land use rights | 205,281 | 205,281 | | Construction costs | 88,371 | 56,229 | - As of June 30, 2025, land use rights in Mainland China amounted to **RMB205,281 thousands**, with lease terms ranging from **40 to 70 years**[157](index=157&type=chunk) [19. Trade and Bills Receivables](index=58&type=section&id=19.%20TRADE%20AND%20BILLS%20RECEIVABLES) As of June 30, 2025, net trade and bills receivables increased, primarily due to growth in bills receivables, with the Group generally granting credit terms of 90 to 120 days to customers and having no concentrated credit risk due to a large customer base Trade and Bills Receivables (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables | 1,176,973 | 1,188,956 | | Bills receivables | 480,913 | 302,898 | | Less: impairment allowance | (113,523) | (87,919) | | **Trade and Bills Receivables — Net** | **1,544,363** | **1,403,935** | - The Group generally grants credit terms of **within 90 days** to its Mainland China customers and **within 120 days** to customers in other countries and regions[163](index=163&type=chunk) - Due to the large number of customers, there is no concentrated credit risk in trade and bills receivables for the Group[166](index=166&type=chunk) [20. Financial Assets at FVOCI](index=60&type=section&id=20.%20FINANCIAL%20ASSETS%20AT%20FVOCI) As of June 30, 2025, the Group's bills receivables, held both to collect contractual cash flows and for sale, are classified as financial assets at fair value through other comprehensive income, and their amount decreased Financial Assets at Fair Value Through Other Comprehensive Income (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current — Bills receivables | 345,669 | 375,631 | - Bills receivables held both to collect contractual cash flows and for selling these assets are classified as financial assets at fair value through other comprehensive income[168](index=168&type=chunk) [21. Prepayments, Deposits and Other Receivables](index=61&type=section&id=21.%20PREPAYMENTS%2C%20DEPOSITS%20AND%20OTHER%20RECEIVABLES) As of June 30, 2025, net prepayments, deposits, and other receivables slightly increased, with VAT recoverable remaining the largest component Prepayments, Deposits and Other Receivables (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | VAT recoverable | 294,190 | 363,339 | | Prepayments for purchase of raw materials | 131,292 | 136,555 | | Deposits | 78,260 | 50,072 | | Amounts due from related parties | 78,021 | 78,310 | | Prepaid income tax | 59,308 | 25,269 | | Prepayments, deposits, other receivables — net | 694,249 | 681,717 | [22. Derivative Financial Instruments](index=62&type=section&id=22.%20DERIVATIVE%20FINANCIAL%20INSTRUMENTS) As of June 30, 2025, the Group's derivative financial instrument assets and liabilities changed, primarily including forward foreign exchange contracts, cross-currency swap contracts, cotton option contracts, and cotton futures contracts, with these non-hedging derivatives classified as current assets or liabilities Derivative Financial Instruments (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets:** | | | | Forward foreign exchange contracts | 30,295 | 99,963 | | Cotton option contracts | 5,147 | 689 | | Cotton futures contracts | 542 | — | | **Liabilities:** | | | | Cross-currency swap contracts | 24,424 | 2,040 | | Forward foreign exchange contracts | 11,286 | 39,451 | | Cotton option contracts | 5,041 | — | | Cotton futures contracts | — | 534 | - Non-hedging derivative instruments are classified as current assets or liabilities[174](index=174&type=chunk) - The total notional principal amount of forward foreign exchange contracts was **RMB3,460,123 thousands** (December 31, 2024: RMB5,360,201 thousands)[175](index=175&type=chunk) [23. Share Capital and Share Premium](index=64&type=section&id=23.%20SHARE%20CAPITAL%20AND%20SHARE%20PREMIUM) As of June 30, 2025, the Company's authorised share capital and issued and fully paid share capital remained unchanged Share Capital and Share Premium (RMB thousands) | Item | June 30, 2025 and December 31, 2024 | | :--- | :--- | | Authorised ordinary shares (par value HK$0.1 per share) | 400,000 (HKD thousands) | | Issued and fully paid ordinary shares (par value HK$0.1 per share) | 96,958 | | Share premium | 462,059 | | **Total** | **559,017** | - The number of ordinary shares in issue was **918,000 thousands**[176](index=176&type=chunk) [24. Borrowings](index=65&type=section&id=24.%20BORROWINGS) As of June 30, 2025, the Group's total borrowings decreased, primarily due to a strategic reduction in bank borrowings to optimize the balance sheet structure, with borrowings denominated in RMB, HKD, VND, and USD, and a lower weighted average effective annual interest rate Total Borrowings (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current borrowings | 3,931,690 | 3,199,142 | | Non-current borrowings | 1,889,794 | 3,196,353 | | **Total borrowings** | **5,821,484** | **6,395,495** | - Bank borrowings of **RMB199,900 thousands** are secured by export tax refunds receivable[179](index=179&type=chunk) - Other bank borrowings of **RMB5,196,584 thousands** are guaranteed by certain subsidiaries of the Group[180](index=180&type=chunk) Borrowings by Currency (RMB thousands) | Currency | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | RMB | 4,134,239 | 4,091,483 | | HKD | 942,811 | 1,811,221 | | VND | 483,145 | 205,255 | | USD | 261,289 | 287,536 | | **Total** | **5,821,484** | **6,395,495** | - The weighted average effective annual interest rate as of June 30, 2025, was **3.64%** (December 31, 2024: 3.95%)[185](index=185&type=chunk) - The Group's unutilised borrowing facilities amounted to approximately **RMB2,149,456 thousands**[185](index=185&type=chunk) [25. Trade and Bills Payables](index=68&type=section&id=25.%20TRADE%20AND%20BILLS%20PAYABLES) As of June 30, 2025, total trade and bills payables increased, primarily due to growth in bills payables, including amounts due to related parties Trade and Bills Payables (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 811,771 | 792,006 | | Bills payables | 192,286 | 94,387 | | **Total** | **1,004,057** | **886,393** | - As of June 30, 2025, trade payables included amounts due to related parties of **RMB63,449 thousands** (December 31, 2024: RMB36,429 thousands)[188](index=188&type=chunk) Ageing Analysis of Trade and Bills Payables (RMB thousands) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 90 days | 855,020 | 809,439 | | 91 to 180 days | 126,569 | 37,547 | | 181 days to 1 year | 18,729 | 28,604 | | Over 1 year | 3,739 | 10,803 | | **Total** | **1,004,057** | **886,393** | [26. Accruals and Other Payables](index=70&type=section&id=26.%20ACCRUALS%20AND%20OTHER%20PAYABLES) As of June 30, 2025, total accruals and other payables slightly decreased, with accrued wages and salaries, accrued operating expenses, and payables for property, plant and equipment purchases being the main components Accruals and Other Payables (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Accrued wages and salaries | 286,416 | 303,036 | | Accrued operating expenses | 137,624 | 155,864 | | Payables for purchase of property, plant and equipment | 124,272 | 196,431 | | Dividends payable | 83,722 | — | | Taxes payable (other than enterprise income tax) | 50,261 | 60,012 | | **Total** | **751,955** | **811,473** | [27. Supply Chain Financing](index=71&type=section&id=27.%20SUPPLY%20CHAIN%20FINANCING) As of June 30, 2025, the Group's total supply chain financing increased, primarily consisting of secured financing repayable within one year, denominated in RMB, USD, HKD, and EUR Supply Chain Financing (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Secured | 2,570,139 | 1,911,445 | | Unsecured | — | 200,000 | | **Total** | **2,570,139** | **2,111,445** | - The carrying amount of supply chain financing is denominated in **RMB, USD, HKD, and EUR**[196](index=196&type=chunk) - The Group's supply chain financing is repayable **within 1 year**[196](index=196&type=chunk) [28. Dividends](index=72&type=section&id=28.%20DIVIDENDS) During the period, the Company recognized a final dividend of RMB83,722 thousands related to the year ended December 31, 2024, as a liability, and the Board resolved not to declare an interim dividend for the six months ended June 30, 2025 - A final dividend of **HK$0.10 per ordinary share**, amounting to **RMB83,722 thousands** related to the year ended December 31, 2024, was recognized as a liability in the financial statements[197](index=197&type=chunk) - The Board recommended not to declare an interim dividend for the six months ended June 30, 2025[199](index=199&type=chunk) [29. Commitments](index=72&type=section&id=29.%20COMMITMENTS) As of June 30, 2025, the Group's total capital expenditure commitments increased, primarily for property, plant and equipment Total Capital Expenditure Commitments (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Authorised but not contracted for | 507,976 | 477,036 | | Contracted but not provided for | 396,551 | 190,787 | | **Total capital expenditure commitments** | **904,527** | **667,823** | [30. Related-Party Transactions](index=73&type=section&id=30.%20RELATED-PARTY%20TRANSACTIONS) This section discloses significant transactions and balances between the Group and related parties, including sales and purchases of goods, energy and water, fixed assets, and the return of certain assets, with all transactions conducted in the ordinary course of business and balances being unsecured, interest-free, and repayable on demand Related-Party Transactions (RMB thousands) | Transaction Type | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Sales of goods | 46,758 | 54,590 | | Purchases of goods | 61,177 | 57,425 | | Sales of power and fuel | 5,962 | 14,209 | | Purchases of power and fuel | 114,092 | 95,452 | | Purchases of services | 27,681 | 21,860 | | Purchases of fixed assets | 2,877 | — | | Return of certain assets | 111,684 | — | | Expenses arising from certain returned assets | 3,143 | — | Balances with Related Parties (RMB thousands) | Balance Type | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables | 24,602 | 32,076 | | Trade payables | 63,449 | 36,429 | | Prepayments, deposits and other receivables | 78,021 | 78,310 | | Accruals and other payables | — | 38,885 | - Total key management personnel compensation amounted to **RMB3,194 thousands** (H1 2024: RMB2,653 thousands)[217](index=217&type=chunk) - Balances with related parties are unsecured, interest-free, and repayable on demand[215](index=215&type=chunk) [31. Subsequent Event](index=81&type=section&id=31.%20SUBSEQUENT%20EVENT) On July 7, 2025, the Company completed the exercise of a put option to acquire Mr. Wei Zhihua's entire 10% equity interest in Qingye International Group Limited (a joint venture), paying 95% of the initial consideration (approximately HK$248,746 thousands), with the remainder subject to verification - On July 7, 2025, the Company completed the acquisition of Mr. Wei Zhihua's entire **10%** equity interest in Qingye International Group Limited (a joint venture)[218](index=218&type=chunk) - The Company paid **95%** of the initial consideration, approximately **HK$248,746 thousands**, with the remainder subject to verification by the accounting firm[218](index=218&type=chunk) [Management Discussion and Analysis](index=82&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's detailed discussion and analysis of the company's performance for the six months ended June 30, 2025, covering macroeconomic environment, industry review, business segment performance, future outlook, and key financial indicators, demonstrating solid operating results and improved profitability despite global economic uncertainties [Overview](index=82&type=section&id=OVERVIEW) During the review period, complex global geopolitical situations and intensified international trade conflicts, particularly the US 'reciprocal tariffs' policy, disrupted international trade order, while China's counter-cyclical policies maintained overall stable domestic demand with differentiated consumption trends, yet the Group achieved robust sales growth and improved gross margins through excellent execution and balanced global production layout - The global geopolitical landscape was complex and volatile, with intensified international trade conflicts, and the US 'reciprocal tariffs' policy significantly disrupted the international trade order[221](index=221&type=chunk) - China's 'Two New' policies drove growth in related commodity sales and manufacturing investment, with overall stable domestic demand but clear differentiation in consumption, as consumers shifted towards 'self-pleasure consumption' and 'value for money', leading to a 'volume up, price down' trend in commodity consumption[222](index=222&type=chunk)[223](index=223&type=chunk)[224](index=224&type=chunk) H1 2025 Key Financial Performance | Metric | H1 2025 | H1 2024 (Restated) | Change | | :--- | :--- | :--- | :--- | | Sales revenue | approximately RMB11.0 billion | approximately RMB11.2 billion | -1.9% | | Overall gross profit margin | approximately **14.2%** | approximately **13.2%** | +1.0 percentage points | | Net profit | approximately **RMB463.5 million** | approximately RMB285.5 million | +62.3% | | Profit attributable to owners of the Company | approximately **RMB418.8 million** | approximately RMB273.2 million | +53.3% | | Basic earnings per share | **RMB0.46** | RMB0.30 | +53.3% | - As of June 30, 2025, the Group's gearing ratio was **51%** (year-end 2024: 52%)[230](index=230&type=chunk) [Industry Review](index=85&type=section&id=INDUSTRY%20REVIEW) In H1 2025, China's textile industry saw declines in operating revenue and net profit for large-scale enterprises, but increases in yarn and chemical fiber output, with overall textile and apparel exports slightly up, while Vietnam experienced increased yarn and staple fiber export volumes but decreased revenue, alongside significant growth in apparel export revenue January-June 2025 Data for China's Textile Industry Large-Scale Enterprises | Metric | Amount/Quantity | Year-on-Year Change | | :--- | :--- | :--- | | Operating revenue | approximately **RMB1,124.5 billion** | -1.9% | | Net profit | approximately **RMB30.2 billion** | -8.1% | | Yarn output | approximately **11.4 million tons** | +5.0% | | Fabric output | approximately **15.4 billion meters** | Flat | | Chemical fiber output | approximately **42.4 million tons** | +4.9% | January-June 2025 China Textile and Apparel Export Data | Item | Amount | Year-on-Year Change | | :--- | :--- | :--- | | Cumulative textile and apparel exports | approximately **USD144.0 billion** | +0.6% | | Textile exports | approximately **USD70.5 billion** | +1.8% | | Apparel exports | approximately **USD73.5 billion** | -0.2% | January-June 2025 Vietnam Export Data | Item | Quantity | Revenue | Year-on-Year Change (Quantity) | Year-on-Year Change (Revenue) | | :--- | :--- | :--- | :--- | :--- | | Yarn and staple fiber exports | approximately **930,000 tons** | approximately **USD2.1 billion** | +2.5% | -4.0% | | Apparel export revenue | Not applicable | approximately **USD18.7 billion** | Not applicable | +12.3% | [Business Review](index=86&type=section&id=BUSINESS%20REVIEW) The Group's revenue is primarily from yarn sales, with woven fabric dominating downstream operations; during the review period, yarn sales revenue decreased due to lower unit prices but saw increased volume and gross margin, while woven fabric sales revenue and volume significantly grew with improved gross margin, knitted fabric business experienced declines in revenue, volume, and negative gross margin due to domestic competition and insufficient orders, trading business revenue significantly increased but gross margin declined due to sales mix changes, and non-woven fabric business revenue substantially grew but had a negative gross margin, as the Group continued to optimize its product portfolio, develop new products, and strengthen vertical integration [Yarn Operation](index=86&type=section&id=Yarn%20operation) Despite weak global textile and apparel market consumption, the Group's yarn sales volume grew 3.6% to approximately 385,000 tons, while sales revenue decreased 2.2% to approximately RMB8.622 billion due to lower unit prices, but the average gross margin significantly improved to 13.9% driven by increased orders, higher capacity utilization, and flexible raw material procurement - Yarn sales revenue decreased by approximately **2.2%** year-on-year to approximately **RMB8.622 billion**, primarily due to a year-on-year decline in average selling price[237](index=237&type=chunk)[259](index=259&type=chunk) - Yarn sales volume increased by approximately **3.6%** year-on-year to approximately **385,000 tons**[242](index=242&type=chunk)[261](index=261&type=chunk) - The average gross profit margin for yarn significantly increased from **12.5%** in the prior period to **13.9%** during the review period[243](index=243&type=chunk)[261](index=261&type=chunk) - The Group continued to invest in vortex spinning pure cotton covered spandex technology, significantly improving yarn elasticity recovery rate and breaking strength, addressing the weakness of insufficient strength in traditional vortex spinning pure cotton yarn[270](index=270&type=chunk) [Woven Garment Fabric Operation](index=88&type=section&id=Woven%20garment%20fabric%20operation) Woven fabric production capacity is primarily overseas and sold to international markets; influenced by US tariff policies, customers accelerated bonded zone inventory replenishment, leading to a significant increase in the Group's Q2 shipments, with woven fabric sales volume substantially growing 17.0% to approximately 51 million meters and sales revenue increasing 17.9%, while gross margin improved from 18.8% to 23.5% due to enhanced capacity utilization and strict energy cost control - Woven fabric sales revenue significantly increased by **17.9%** year-on-year[237](index=237&type=chunk)[259](index=259&type=chunk) - Woven fabric sales volume significantly increased by approximately **17.0%** from approximately **43.6 million meters** in the prior period to approximately **51 million meters** during the review period[246](index=246&type=chunk)[261](index=261&type=chunk) - The gross profit margin for woven fabric improved from **18.8%** in the prior period to **23.5%** during the review period[247](index=247&type=chunk)[261](index=261&type=chunk) [Knitted Garment Fabric Operation](index=89&type=section&id=Knitted%20garment%20fabric%20operation) After divesting its loss-making Vietnamese factory, the Group's knitted fabric business primarily focuses on the domestic market; during the review period, knitted fabric sales volume decreased to approximately 3,800 tons, and sales revenue contracted 37.8% to approximately RMB185.9 million due to increased domestic competition from reduced US exports, resulting in a negative gross margin of –4.2% due to lower capacity utilization and fixed asset impairment - Knitted fabric sales volume decreased from approximately **5,800 tons** in the prior period to approximately **3,800 tons**[250](index=250&type=chunk)[261](index=261&type=chunk) - Sales revenue decreased by **37.8%** from approximately **RMB298.7 million** in the prior period to approximately **RMB185.9 million**[250](index=250&type=chunk)[259](index=259&type=chunk) - The gross profit margin during the review period was **–4.2%**, primarily due to decreased capacity utilization and impairment of fixed assets[250](index=250&type=chunk)[261](index=261&type=chunk) [Trading Operation](index=89&type=section&id=Trading%20operation) The trading business primarily involves yarn, fabric, and apparel trade, with a focus on US denim fabric and apparel; the Group's flexible trading strategies and tariff changes encouraging US customers to source locally led to a significant 29.9% increase in trading business sales revenue to approximately RMB818.5 million, though the gross margin declined from 12.3% to 10.3% due to changes in the sales mix - Trading business sales revenue increased by approximately **29.9%** to approximately **RMB818.5 million**[255](index=255&type=chunk)[259](index=259&type=chunk) - The gross profit margin decreased from **12.3%** in the prior period to **10.3%** during the review period, primarily due to changes in the sales mix[255](index=255&type=chunk)[261](index=261&type=chunk) - US customers' preference for locally sourced fabrics and apparel significantly boosted the Group's US denim fabric and apparel business sales revenue[254](index=254&type=chunk) [Non-woven Fabric Operation](index=90&type=section&id=Non-woven%20fabric%20operation) Despite the non-woven fabric business not meeting expectations in recent years, the Group continued to optimize its product structure and actively expand overseas markets; during the review period, the Group capitalized on opportunities from US-China trade frictions, optimized overseas capacity layout, and advanced strategic collaborations with renowned clients, leading to a significant 95.8% increase in non-woven fabric sales revenue to approximately RMB69.1 million, though the gross margin was –21.2% - Non-woven fabric sales revenue increased by **95.8%** from approximately **RMB35.3 million** in the prior period to approximately **RMB69.1 million**[256](index=256&type=chunk)[259](index=259&type=chunk) - The gross profit margin was **–21.2%**[261](index=261&type=chunk) - The Group seized opportunities arising from US-China trade frictions for its overseas non-woven fabric capacity layout, advancing strategic collaborations with renowned industry clients to expand international customer sources and secure market orders[256](index=256&type=chunk) [Prospects](index=94&type=section&id=PROSPECTS) The Group maintains a stable investment strategy with capacity largely consistent with last year; while uncertainties from US 'reciprocal tariffs' and geopolitical risks may lead to inventory mismatches, demand decline, and cost increases, US tax incentives, fiscal appropriations, and anticipated dollar depreciation could mitigate economic downturn risks, as the Group, with its global capacity layout, aims to seize industry capacity transfer opportunities, strengthen 'organic growth' strategies, and reduce energy costs through green initiatives like photovoltaic power stations - As of June 30, 2025, the Group's main production facilities included approximately **4.23 million spindles** (2.48 million in China, 1.75 million overseas), largely consistent with last year's capacity[274](index=274&type=chunk) - The US 'reciprocal tariffs' policy still presents significant uncertainties, potentially leading to increased consumer prices in the end market and issues of inventory mismatch and demand decline for the textile industry[275](index=275&type=chunk) - Ongoing geopolitical risks could disrupt global supply chains and drive up energy and raw material prices[275](index=275&type=chunk) - The US 'Big and Beautiful Act' provides substantial tax incentives and fiscal appropriations, coupled with anticipated interest rate cuts leading to depreciation pressure on the US dollar, which may partially mitigate economic downturn risks[277](index=277&type=chunk) - The Group has completed its capacity layout in China, Vietnam, Europe, and America, positioning it to capture market opportunities and further expand its overseas market share[280](index=280&type=chunk) - The Group will strengthen its 'organic growth' strategy by upgrading existing equipment through technological transformation, improving production efficiency, reducing production costs, and thereby enhancing return on investment[281](index=281&type=chunk) - As of the end of June 2025, the Group had completed and put into operation **70 MW** of photovoltaic power stations in Mainland China, with plans to further construct approximately **110 MW** of distributed photovoltaic power stations in H2 2025[282](index=282&type=chunk) H2 2025 Sales Targets (excluding trading business) | Product | Sales Target | | :--- | :--- | | Yarn | approximately **400,000 tons** | | Woven Fabric | **50 million meters** | | Knitted Fabric | **3,000 tons** | [Subsequent Events After the Review Period](index=97&type=section&id=SUBSEQUENT%20EVENTS%20AFTER%20THE%20REVIEW%20PERIOD) This section reiterates the significant post-review period event where the Company completed the exercise of a put option on July 7, 2025, to acquire Mr. Wei Zhihua's 10% equity interest in Qingye International Group Limited (a joint venture), paying 95% of the initial consideration (approximately HK$248.7 million) - On July 7, 2025, the Company completed the acquisition of Mr. Wei Zhihua's entire **10%** equity interest in Qingye International Group Limited (a joint venture)[287](index=287&type=chunk) - The Company paid **95%** of the initial consideration, approximately **HK$248.7 million**, to Mr. Wei Zhihua and his nominee[287](index=287&type=chunk) [Financial Review](index=98&type=section&id=FINANCIAL%20REVIEW) The Group's bank and cash balances and total borrowings both decreased, reflecting a strategic reduction in bank borrowings to optimize the balance sheet structure; inventory and trade and bills receivables turnover days slightly increased, while capital expenditures were primarily for equipment upgrades and plant construction, with no significant contingent liabilities, and related-party transactions and key management compensation disclosed, and the Board resolved not to declare an interim dividend to reduce operating risks and financing costs [Liquidity and Financial Resources](index=98&type=section&id=Liquidity%20and%20financial%20resources) As of June 30, 2025, the Group's bank and cash balances and total borrowings both decreased, primarily due to a strategic reduction in bank borrowings to optimize the balance sheet structure; inventory and trade and bills receivables turnover days slightly increased, while trade and bills payables turnover days also increased due to early settlement of letter of credit payments, with improvements in the current ratio, debt-to-equity ratio, net debt-to-equity ratio, and gearing ratio - Bank and cash balances (including pledged bank deposits) amounted to approximately **RMB2.7152 billion** (December 31, 2024: RMB2.9042 billion), with the decrease primarily due to a strategic reduction in bank borrowings[288](index=288&type=chunk) - Inventories increased by approximately **RMB825.9 million** to approximately **RMB5.369 billion**[289](index=289&type=chunk) - Inventory turnover days were approximately **94 days** (2024: 87 days), with the increase mainly due to slower pickup by yarn customers[289](index=289&type=chunk) - Trade and bills receivables turnover days were approximately **30 days** (2024: 29 days), with a slight increase mainly due to a rebound in overseas sales[289](index=289&type=chunk) - Trade and bills payables (including supply chain financing) increased by approximately **RMB576.4 million** to approximately **RMB3.5742 billion**[290](index=290&type=chunk) - Trade and bills payables turnover days were approximately **62 days** (2024: 57 days), with the increase mainly due to early settlement of a large number of letter of credit payments at the end of 2024[290](index=290&type=chunk) - Borrowings decreased by approximately **RMB574.0 million** to approximately **RMB5.8215 billion**, primarily due to a strategic reduction in bank borrowings[293](index=293&type=chunk) Key Financial Ratios | Ratio | June 30, 2025 | December 31, 2024 (Restated) | | :--- | :--- | :--- | | Current ratio | 1.26 | 1.40 | | Debt-to-equity ratio | 0.59 | 0.68 | | Net debt-to-equity ratio | 0.32 | 0.37 | | Gearing ratio | 0.51 | 0.52 | [Foreign Exchange Risk](index=100&type=section&id=Foreign%20exchange%20risk) The Group primarily operates in China and Vietnam, with most transactions, assets, and liabilities denominated in RMB, USD, and HKD; foreign exchange risk mainly arises from bank borrowings and raw material purchases denominated in USD and HKD, which the Group manages and hedges through regular reviews and forward foreign exchange contracts and cross-currency swap contracts - The Group primarily operates in China and Vietnam, with most transactions, assets, and liabilities denominated in **RMB, USD, and HKD**[297](index=297&type=chunk) - The Group's foreign exchange exposure primarily arises from bank borrowings and raw material purchases denominated in **USD and HKD**[297](index=297&type=chunk) - To mitigate the risk of RMB depreciation, the Group hedges most of its foreign currency exposure by entering into various forward foreign exchange contracts and cross-currency swap contracts[298](index=298&type=chunk) [Capital Expenditure](index=100&type=section&id=Capital%20expenditure) For the six months ended June 30, 2025, the Group's capital expenditure was approximately RMB340 million, primarily for equipment upgrades and renovations at factories in Mainland China and overseas, as well as plant construction in Vietnam - For the six months ended June 30, 2025, the Group's capital expenditure was approximately **RMB340.0 million** (H1 2024: RMB290.0 million)[299](index=299&type=chunk) - This was primarily related to equipment upgrades and renovations at factories in Mainland China and overseas, as well as plant construction in Vietnam during the review period[299](index=299&type=chunk) [Significant Investments Held, Material Acquisitions and Disposals, and Other Significant Transactions](index=101&type=section&id=Significant%20investments%20held%2C%20material%20acquisitions%20and%20disposals%20and%20other%20significant%20transactions) The Group terminated the asset purchase agreement with Texhong Industrial Park Vietnam Co., Ltd., returning the consideration for unregistered land plots (Plots 1 and 2B) and derecognizing the related assets, while also entering into an energy and water supply framework agreement with Texhong Industrial Park to ensure necessary supplies post-termination - The Group ceased attempts to complete the registration of Plots 1 and 2B and terminated the acquisition of these returned assets[303](index=303&type=chunk) - Texhong Industrial Park returned the consideration attributable to the returned assets, which were consequently derecognized from the Group's consolidated financial statements[304](index=304&type=chunk) - The Company entered into an energy and water supply framework agreement with Texhong Industrial Park to ensure sufficient supply of steam, water, and liquefied petroleum gas to the Group after the termination[305](index=305&type=chunk) [Pledge of Assets](index=102&type=section&id=Pledge%20of%20assets) As of June 30, 2025, bank borrowings of RMB199.9 million were secured by export tax refunds receivable - As of June 30, 2025, bank borrowings of **RMB199.9 million** (December 31, 2024: RMB200 million) were secured by export tax refunds receivable[307](index=307&type=chunk) [Contingent Liabilities](index=102&type=section&id=Contingent%20liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities (December 31, 2024: Nil)[308](index=308&type=chunk) [Human Resources](index=103&type=section&id=Human%20resources) As of June 30, 2025, the Group had 26,222 employees, with 14,475 in Mainland China and 11,747 overseas; total staff costs for the period were approximately RMB1.2533 billion, as the Group focuses on optimizing human resource structure, offering competitive remuneration, and emphasizing employee training and team building - As of June 30, 2025, the Group had **26,222 employees** (December 31, 2024: 26,655 employees)[313](index=313&type=chunk) - Of these, **14,475 employees** were located in Mainland China, and **11,747 employees** were stationed outside Mainland China (including Vietnam, Turkey, America, Hong Kong, and Macau)[313](index=313&type=chunk) - During the review period, the Group's total staff costs amounted to approximately **RMB1.2533 billion** (H1 2024: approximately RMB1.1896 billion)[313](index=313&type=chunk) [Dividend Policy](index=104&type=section&id=Dividend%20policy) The Board is committed to maintaining long-term stable dividends (approximately 30% of the Group's annual net profit attributable to owners of the Company); however, to address uncertainties from the US 'reciprocal tariffs' policy, the Board resolved not to declare an interim dividend for the six months ended June 30, 2025, to further reduce debt levels, operating risks, and financing costs - The Board is committed to maintaining long-term stable dividends (approximately **30%** of the Group's annual net profit attributable to owners of the Company)[316](index=316&type=chunk) - To effectively address the uncertainties arising from the US 'reciprocal tariffs' policy, the Board resolved not to declare an interim dividend for the six months ended June 30, 2025[316](index=316&type=chunk) [Additional Information](index=105&type=section&id=Additional%20Information) This section provides additional information, including interests and short positions of directors and chief executives in the company's shares and related shares, interests and short positions of substantial shareholders, and details on the company's corporate governance, including the composition and responsibilities of various committees [Directors' and Chief Executives' Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company or Any Associated Corporation](index=105&type=section&id=DIRECTORS'%20AND%20CHIEF%20EXECUTIVES'%20INTERESTS%20AND%20SHORT%20POSITIONS%20IN%20SHARES%2C%20UNDERLYING%20SHARES%20AND%20DEBENTURES%20OF%20THE%20COMPANY%20OR%20ANY%20ASSOCIATED%20CORPORATION) As of June 30, 2025, the Company's directors and chief executives held interests in the shares of the Company and its associated corporations, with Mr. Hong Tianzhu holding a **59.93%** long position and Mr. Zhu Yongxiang holding a **23.95%** long position in the Company Directors' Long Positions in Ordinary Shares of the Company | Name of Director | Nature of Interest | Number of Shares in which Interests are Held (thousands) | Approximate Percentage of Interest in the Corporation | | :--- | :--- | :--- | :--- | | Mr. Hong Tianzhu | Interest in controlled corporation | 544,742.4 | 59.34% | | Mr. Hong Tianzhu | Beneficial owner | 5,400 | 0.59% | | **Mr. Hong Tianzhu Total** | | **550,142.4** | **59.93%** | | Mr. Zhu Yongxiang | Interest in controlled corporation | 219,900 | 23.95% | | Mr. Shu Huadong | Beneficial owner | 80 | 0.01% | [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares of the Company](index=109&type=section&id=SUBSTANTIAL%20SHAREHOLDERS'%20INTERESTS%20AND%20SHORT%20POSITIONS%20IN%20SHARES%20AND%20UNDERLYING%20SHARES%20OF%20THE%20COMPANY) As of June 30, 2025, substantial shareholders (excluding directors or chief executives) held interests in the Company's shares, with New Green Group Limited and Texhong Group Holdings Limited each holding a **59.34%** long position, and Wisdom Grace Investments Limited holding a **23.95%** long position Substantial Shareholders' Long Positions in Ordinary Shares of the Company | Name of Substantial Shareholder | Nature of Interest | Number of Shares in which Interests are Held (thousands) | Approximate Percentage | | :--- | :--- | :--- | :--- | | New Green Group Limited | Beneficial owner | 392,842.4 | 42.79% | | New Green Group Limited | Interest in controlled corporation | 151,900 | 16.55% | | **New Green Group Limited Total** | | **544,742.4** | **59.34%** | | Trade Partner Investments Limited | Beneficial owner | 151,900 | 16.55% | | Wisdom Grace Investments Limited | Beneficial owner | 68,000 | 7.41% | | Wisdom Grace Investments Limited | Interest in controlled corporation | 151,900 | 16.55% | | **Wisdom Grace Investments Limited Total** | | **219,900** | **23.95%** | | Texhong Group Holdings Limited | Interest in controlled corporation | 544,742.4 | 59.34% | | Ms. Ke Luping (spouse of Mr. Hong Tianzhu) | Interest of spouse | 550,142.4 | 59.93% | | Ms. Zhao Zhiyang (spouse of Mr. Zhu Yongxiang) | Interest of spouse | 219,900 | 23.95% | | Mr. Xu Qingliu | Interest in controlled corporation | 64,200 | 6.99% | | Event Star Limited | Beneficial owner | 64,200 | 6.99% | [Corporate Governance](index=112&type=section&id=CORPORATE%20GOVERNANCE) The Group is committed to maintaining high standards of corporate governance and complied with the Corporate Governance Code provisions in Appendix C1 of the Listing Rules during the review period, with the Board comprising three executive and three independent non-executive directors - The Board comprises three executive directors and three independent non-executive directors[341](index=341&type=chunk) - The Company complied with the code provisions in the Corporate Governance Code set out in Appendix C1 to the Listing Rules during the review period[341](index=341&type=chunk) [Changes of Information of Directors and Chief Executives Under Rule 13.51B(1) of the Listing Rules](index=112&type=section&id=CHANGES%20OF%20INFORMATION%20OF%20DIRECTORS%20AND%20CHIEF%20EXECUTIVES%20UNDER%20RULE%2013.51B(1)%20OF%20THE%20LISTING%20RULES) For the six months ended June 30, 2025, there were no changes in

Macro and Strategy - The report discusses the internal tension between investment and consumption in China's economy, highlighting that the concentration of capital income among high-income groups leads to a low marginal propensity to consume, which is a primary source of investment [10][11] - It emphasizes that the imbalance between capital income and consumption demand has resulted in a continuous rise in China's capital-output ratio and a decline in capital return rates, making investment-driven growth unsustainable [10][11] Industry and Company - The automotive industry saw a 12% year-on-year increase in wholesale sales of passenger vehicles from August 1 to 24, 2025, with the collaboration between Huawei and SAIC for the H5 model opening for pre-orders [14][15] - The media and internet sector reported a 2.99% increase in industry performance, with OpenAI launching the GPT-Realtime voice model and the summer box office surpassing 11.8 billion yuan [18][21] - The public utility and environmental protection sector is focusing on the ongoing construction of a national carbon market, which is expected to drive urban green and low-carbon transformation [22][23] - The fluorochemical industry is experiencing a price increase in mainstream refrigerants, with R32 and R134a expected to see stable price growth due to limited supply and strong demand [25][29] - Yili Group reported a 5.9% year-on-year increase in revenue for Q2 2025, with improvements in profitability driven by a decrease in raw milk prices and better cost management [31][33] - Huadian International's revenue decreased by 8.98% in H1 2025 due to lower electricity prices and generation, but net profit increased by 13.15% due to reduced fuel costs [34]

Core Viewpoint - The company, a leading global cotton yarn producer, experienced a slight revenue decline in the first half of 2025, but showed significant improvement in profitability and debt structure optimization [1][2] Financial Performance - Revenue decreased by 1.9% year-on-year to 11.03 billion yuan, primarily due to lower product prices [1] - Net profit attributable to shareholders increased by 55.2% year-on-year to 420 million yuan, indicating a notable enhancement in profitability [1] - Gross margin improved by 1.0 percentage point to 14.2%, driven by operational efficiency and capacity utilization [1] - Financial expense ratio decreased by 1.0 percentage point to 1.3%, benefiting from foreign exchange gains and reduced loans [1] - Asset-liability ratio decreased by 2.6 percentage points to 51.4%, reflecting ongoing debt structure optimization [1] Inventory and Capital Expenditure - Inventory increased by 5.9% year-on-year to 5.369 billion yuan, attributed to unsold goods due to tariff uncertainties [1] - Capital expenditure rose by 17.2% year-on-year to 340 million yuan, linked to equipment upgrades and construction of factories in Vietnam [1] Business Segment Performance - Yarn sales volume increased by 3.6% year-on-year to 385,000 tons, driven by demand for functional sportswear [1] - Revenue from yarn decreased by 2.2% to 8.62 billion yuan due to price declines [1] - Sales of woven fabrics surged by 17.0% year-on-year to 51 million meters, supported by accelerated inventory replenishment amid tariff policy changes [1] - Gross margin for woven fabrics improved by 4.7 percentage points to 23.5% [1] - Sales of knitted fabrics fell by 33.5% year-on-year to 3,840 tons, with revenue declining by 37.8% to 18.6 million yuan, impacted by reduced export orders to the U.S. [1] Outlook for Second Half of 2025 - Management plans to sell 400,000 tons of yarn, 50 million meters of woven fabrics, and 3,000 tons of knitted fabrics in the second half of 2025 [2] - The company expects continued improvement in profitability and stable operational capabilities in the medium to long term [2] - Profit forecasts for 2025-2027 have been raised, with expected net profits of 720 million, 770 million, and 970 million yuan respectively [2] - Target price adjusted to 5.1-5.9 HKD, reflecting an increase in profit expectations [2]

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 FF301 第 1 頁 共 10 頁 v 1.1.1 FF301 II. 已發行股份及/或庫存股份變動 公司名稱: 天虹國際集團有限公司 呈交日期: 2025年9月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 02678 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 4,000,000,000 | HKD | | 0.1 HKD | | 400,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | 0 | | 本月底結存 | | | 4,000,000,000 | HKD | ...