致：香港交易及結算所有限公司 公司名稱: 華津國際控股有限公司 呈交日期: 2025年11月5日 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 截至月份: 2025年10月31日 狀態: 新提交 | 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) | 02738 | 說明 | 華津國際控股 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 8,000,000,000 | HKD | | 0.01 | HKD | | 80,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 8,000,000,000 | HKD | | 0.01 | HKD | | 80,000,000 | 本 ...

Core Viewpoint - Mr. Xu Songman has resigned from his position as an executive director of Huajin International Holdings, effective June 22, 2025, to focus more on his personal affairs [1] Company Summary - Huajin International Holdings (02738) announced the resignation of Mr. Xu Songman as an executive director [1]

Core Viewpoint - Huajin International Holdings (02738) announced the resignation of Mr. Xu Songman as an executive director, effective June 22, 2025, due to his decision to devote more time to personal matters [1] Company Summary - Mr. Xu Songman's resignation will take effect on June 22, 2025 [1] - The reason for his resignation is to allocate more time to his other personal affairs [1]

Core Viewpoint - Huajin International Holdings (02738.HK) announced the resignation of Mr. Xu Songman as an executive director, effective June 22, 2025, due to his decision to devote more time to personal matters [1] Company Summary - Mr. Xu Songman's resignation will take effect on June 22, 2025 [1] - The reason for his resignation is to allocate more time to his other personal affairs [1]

HUAJIN INTERNATIONAL HOLDINGS LIMITED 華津國際控股有限公司 許松慶先生(主席) 陳愛發先生 羅燦文先生(行政總裁) 區啓源先生 執行董事 獨立非執行董事 葉雅婷女士 非執行董事 許健鴻先生 ( 於開曼群島註冊成立的有限責任公司 ) (Stock Code: 2738) 董事名單與其角色和職能 自 2025 年 6 月 22 日起生效，華津國際控股有限公司董事會（「董事會」）成員載列如下： 本公司已設立四個董事委員會。以下載列各董事會成員在該等委員會中所擔任的職位資料： | 董事會成員 | 審核 | 薪酬 | 提名 | 合規 | | --- | --- | --- | --- | --- | | | 委員會 | 委員會 | 委員會 | 委員會 | | 執行董事 | | | | | | 許松慶先生 | - | 成員 | 主席 | 主席 | | 羅燦文先生 | - | - | - | - | | 非執行董事 | | | | | | 許健鴻先生 | - | - | - | - | | 獨立非執行董事 | | | | | | 陳愛發先生 | 主席 | 成員 | 成員 | 成員 | ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容而產生或因倚賴該 等內容而引致之任何損失承擔任何責任。 HUAJIN INTERNATIONAL HOLDINGS LIMITED 華津國際控股有限公司 ( 於開曼群島註冊成立的有限公司 ) (Stock Code: 2738) 執行董事辭任 及 違反上市規則 執行董事辭任 華津國際控股有限公司（「本公司」，連同其附屬公司稱「本集團」）董事（「董事」）會（「董 事會」）宣佈，Mr. Xu Songman 先生（「Xu 先生」）已辭任本公司執行董事一職，自 2025 年 6 月 22 日起生效，辭任原因是 Xu 先生決定將更多時間投入其其他個人事務。 Xu 先生已確認，其與董事會之間並無任何意見分歧，亦無任何與辭任相關的事宜需提請本公 司股東垂注。 違反上市規則事宜 由於 Xu 先生與董事會之間的溝通失誤，本公司未能遵守聯交所證券上市規則（「上市規則」） 第 13.51 (2) 條的規定 —— 該條款要求公司董事局成員發生任何變動時，須儘快作出公告。 本公司將 ...

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: 華津國際控股有限公司 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) | 02738 | 說明 | 華津國際控股 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 8,000,000,000 | HKD | | 0.01 | HKD | | 80,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 8,000,000,000 | HKD | | 0.01 | HKD | | 80,000,000 | 本月 ...

HUAJIN INTERNATIONAL HOLDINGS LIMITED 華津國際控股有限公司 (Incorporated in the Cayman Islands with limited liability) （於開曼群島註冊成立之有限公司） Dear Non-registered Shareholder (Note 1), The following document(s) of Huajin International Holdings Limited (the "Company") has/have been prepared in English and Chinese and is/are available on the websites of the Company at www.huajin-hk.com and The Stock Exchange of Hong Kong Limited at www.hkexnews.hk (collectively the "Websites"):– • 2025 Interim Report Please provide your email ...

HUAJIN INTERNATIONAL HOLDINGS LIMITED 華津國際控股有限公司 (Incorporated in the Cayman Islands with limited liability) （於開曼群島註冊成立之有限公司） (Stock Code 股份代號：2738) NOTIFICATION LETTER 通知信函 19 September 2025 If you have previously submitted written request to receive Corporate Communications in printed form, printed version of the above Corporate Communication is enclosed herewith. Please be aware that any written request from a shareholder to receive Corporate Communications in printed form will expire one year from the d ...

[Financial Summary](index=3&type=section&id=Financial%20Summary) Huajin International Holdings Limited's financial performance significantly deteriorated in H1 2025, with revenue plummeting 77.1% year-on-year, shifting from profit to substantial loss, and basic loss per share reaching RMB 87.19 cents. The balance sheet also worsened, with net debt turning negative from net assets, and the debt-to-asset ratio increasing Key Financial Data for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 732.9 | 3,206.5 | -77.1% | | Gross (Loss) Profit | (540.2) | 94.2 | Not Applicable | | Gross (Loss) Profit Margin (%) | (73.7%) | 2.9% | | | (Loss) Profit Attributable to Owners of the Company | (523.1) | 16.9 | Not Applicable | | Net Loss Margin (%) | (71.4%) | 0.5% | | | Basic (Loss) Earnings Per Share (RMB cents) | (87.19) | 2.81 | | | Diluted (Loss) Earnings Per Share (RMB cents) | (87.19) | 2.81 | | | Sales Volume (tons) | 145,494 | 678,887 | -78.6% | | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 3,302.5 | 3,716.7 | -11.1% | | Net (Liabilities) Assets | (99.6) | 423.8 | Not Applicable | | Net (Liabilities) Assets Per Share (RMB) | (0.17) | 0.71 | Not Applicable | | Borrowings | 2,362.1 | 2,510.4 | -5.9% | | Gearing Ratio (%) | 71.5% | 67.5% | | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The company shifted from profit to a substantial loss in H1 2025, primarily due to a significant decline in revenue and a shift from gross profit to gross loss, while net finance costs decreased, but not enough to offset the operational deterioration Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the Six Months Ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue | 732,906 | 3,206,463 | -77.1% | | Cost of Sales | (1,273,119) | (3,112,274) | -59.1% | | Gross (Loss) Profit | (540,213) | 94,189 | Not Applicable | | Other Income, Other Gains and Losses (Net) | (2,122) | 24,510 | Not Applicable | | Selling Expenses | (13,829) | (16,844) | -17.9% | | Administrative Expenses | (31,972) | (36,941) | -13.5% | | (Loss) Profit Before Investment Income, Net Finance Costs and Tax | (588,136) | 64,914 | Not Applicable | | Investment Income | – | 6,055 | Not Applicable | | Net Finance Costs | (28,663) | (51,492) | -44.3% | | (Loss) Profit Before Tax | (616,799) | 19,477 | Not Applicable | | Income Tax Credit (Expense) | 93,651 | (2,592) | Not Applicable | | (Loss) Profit for the Period | (523,148) | 16,885 | Not Applicable | | (Loss) Profit for the Period Attributable to Owners of the Company | (523,148) | 16,885 | Not Applicable | | Basic (Loss) Earnings Per Share (RMB cents) | (87.19) | 2.81 | Not Applicable | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's financial position deteriorated, with net current liabilities and net liabilities significantly increasing, total assets and liabilities decreasing, and net liabilities turning negative, indicating increased debt repayment pressure Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | **ASSETS** | | | | | Non-current Assets | 2,272,323 | 2,228,043 | +2.0% | | Current Assets | 1,030,213 | 1,488,609 | -30.8% | | **LIABILITIES** | | | | | Current Liabilities | 2,126,355 | 2,243,122 | -5.2% | | Non-current Liabilities | 1,275,821 | 1,049,768 | +21.5% | | **EQUITY** | | | | | (Deficit) Equity Attributable to Owners of the Company | (101,370) | 422,032 | Not Applicable | | Non-controlling Interests | 1,730 | 1,730 | 0.0% | | Total (Deficit) Equity | (99,640) | 423,762 | Not Applicable | | Net Current Liabilities | (1,096,142) | (754,513) | -45.3% | [Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, the company's total equity shifted from positive to negative, primarily due to a substantial loss of RMB 523.1 million during the period and reserve adjustments from lapsed share options - As of June 30, 2025, **equity attributable to owners of the Company** shifted from a positive **RMB 422,032 thousand** on December 31, 2024, to a negative **RMB (101,370) thousand**[13](index=13&type=chunk) - The **loss for the period** of **RMB (523,148) thousand** was the primary driver of the significant decrease in equity[13](index=13&type=chunk) - Other comprehensive expenses included exchange differences on translation of foreign operations of **RMB (254) thousand** and a decrease in share-based payment reserve due to lapsed share options of **RMB (3,976) thousand**, transferred to retained profits[13](index=13&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, operating cash flow shifted from net outflow to net inflow, investment cash outflow significantly decreased and turned into net inflow, but financing cash flow shifted from net inflow to net outflow, resulting in a net decrease in cash and cash equivalents Condensed Consolidated Statement of Cash Flows (For the Six Months Ended June 30) | Activity Type | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Net Cash From (Used In) Operating Activities | 113,605 | (603,779) | from net outflow to net inflow | | Net Cash From (Used In) Investing Activities | 37,238 | (396,883) | from net outflow to net inflow | | Net Cash (Used In) From Financing Activities | (180,836) | 954,332 | from net inflow to net outflow | | Net Decrease in Cash and Cash Equivalents | (29,993) | (46,330) | decrease narrowed | | Cash and Cash Equivalents at June 30 | 5,200 | 52,020 | significantly decreased | - Operating cash flow improvement was primarily due to **decreased inventories**, **reduced trade receivables**, and **increased contract liabilities**[14](index=14&type=chunk) - Investing cash flow shifted to a net inflow, mainly due to a significant **decrease in deposits paid for acquisition of property, plant and equipment** and an **increase in withdrawal of restricted bank deposits**[16](index=16&type=chunk) - Financing cash flow shifted to a net outflow, primarily due to **increased repayment of borrowings** and **decreased proceeds from new borrowings**[16](index=16&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section details the basis of preparation, accounting policies, composition, and reasons for changes in various financial data, including revenue, costs, assets, liabilities, equity, cash flows, and related party transactions, providing supplementary information for understanding the company's financial position and operating results [1. Basis of Preparation](index=10&type=section&id=1.%20Basis%20of%20Preparation) The Group's condensed consolidated financial statements are prepared in accordance with HKAS 34 and the Listing Rules. Despite current liabilities exceeding current assets and a net liability position, the Board believes the Group can continue as a going concern for at least the next twelve months - As of June 30, 2025, the Group's **current liabilities exceeded current assets by RMB 1,096,142 thousand**, and it recorded **net liabilities of RMB 99,640 thousand**[17](index=17&type=chunk) - The Board believes that, based on available bank facilities of approximately **RMB 2,855,235 thousand** (of which **RMB 1,208,877 thousand** remained unutilised) to meet operational needs and expected working capital, the Group will be able to continue as a going concern for at least the next twelve months[18](index=18&type=chunk) - All currently utilised financing facilities are expected to be renewed upon maturity, thus the condensed consolidated financial statements are prepared on a going concern basis[18](index=18&type=chunk)[19](index=19&type=chunk) [2. Accounting Policies](index=11&type=section&id=2.%20Accounting%20Policies) The condensed consolidated financial statements are prepared on a historical cost basis, and accounting policies are consistent with the prior year's financial statements, except for the application of revised HKFRS accounting standards. The application of new standards in this interim period had no significant impact on financial position and performance - The condensed consolidated financial statements are prepared on a **historical cost basis**, except for certain financial instruments measured at fair value where applicable[20](index=20&type=chunk) - The Group first applied revised HKFRS accounting standards issued by the HKICPA during the current interim period, including HKAS 21 (Amendment) Lack of Exchangeability[21](index=21&type=chunk) - The application of the revised HKFRS accounting standards did not have a significant impact on the Group's financial position and performance during the current and prior periods[22](index=22&type=chunk) [3. Revenue and Segment Information](index=12&type=section&id=3.%20Revenue%20and%20Segment%20Information) The Group primarily engages in the production and sale of cold-rolled and galvanized steel products, operating as a single segment. Revenue significantly decreased by 77.1% in H1 2025, mainly from the China market, with notable declines in both sales volume and average selling prices - The Group is primarily engaged in the production and sale of cold-rolled and galvanized steel products, and management considers there to be only **one operating segment**[23](index=23&type=chunk) Revenue by Type of Goods (For the Six Months Ended June 30) | Type of Goods | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Sales of cold-rolled steel products — steel bars and plates | 317,925 | 1,669,663 | -80.9% | | Sales of cold-rolled steel products — welded steel pipes | 23,111 | 67,910 | -66.0% | | Sales of galvanized steel products | 209,050 | 1,148,899 | -81.8% | | Sales of hot-rolled steel products and others | 182,820 | 319,991 | -42.8% | | **Total Revenue** | **732,906** | **3,206,463** | **-77.1%** | Revenue by Geographical Location of Customers (For the Six Months Ended June 30) | Geographical Location | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | China (including Hong Kong) | 730,331 | 3,173,171 | -77.0% | | Southeast Asia | 2,575 | 33,292 | -92.3% | | **Total Revenue** | **732,906** | **3,206,463** | **-77.1%** | [4. Finance Income and Costs](index=14&type=section&id=4.%20Finance%20Income%20and%20Costs) For the six months ended June 30, 2025, the Group's net finance costs significantly decreased by 44.3%, primarily due to lower interest expenses on borrowings, partly attributable to a reduction in borrowing rates Finance Income and Costs (For the Six Months Ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Finance Costs | (29,472) | (53,216) | -44.5% | | Finance Income | 809 | 1,724 | -53.1% | | **Net Finance Costs** | **(28,663)** | **(51,492)** | **-44.3%** | - The decrease in interest expense on borrowings was partly due to a **lower general interest rate** for most borrowings for the six months ended June 30, 2025, compared to the same period in 2024 (**2.90% to 7.11% vs 3.10% to 7.11%**)[26](index=26&type=chunk) [5. Income Tax Credit (Expense)](index=14&type=section&id=5.%20Income%20Tax%20Credit%20(Expense)) For the six months ended June 30, 2025, the Group recorded an income tax credit of RMB 93.7 million, compared to an income tax expense in the prior period, primarily due to a significant increase in deferred tax credit Income Tax Credit (Expense) (For the Six Months Ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Current tax expense — PRC Enterprise Income Tax | – | 3,398 | Not Applicable | | Deferred tax | (93,651) | (806) | Not Applicable | | **Income Tax Credit (Expense) for the Period** | **(93,651)** | **2,592** | **Not Applicable** | - A **deferred tax credit of RMB 93,651 thousand** was recorded in H1 2025, compared to a deferred tax expense of **RMB 806 thousand** in the corresponding period of 2024[27](index=27&type=chunk) [6. (Loss) Profit for the Period](index=15&type=section&id=6.%20(Loss)%20Profit%20for%20the%20Period) For the six months ended June 30, 2025, the Group shifted from a profit in the prior period to a substantial loss, primarily impacted by decreased revenue, increased gross loss, and changes in employee benefits and depreciation expenses Components of (Loss) Profit for the Period (For the Six Months Ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Total employee benefits expense | 57,365 | 70,288 | -18.4% | | Depreciation of property, plant and equipment (net) | 4,244 | 7,128 | -40.5% | | Depreciation of right-of-use assets (net) | 2,513 | 2,587 | -2.9% | | Cost of inventories recognised as an expense | 1,273,119 | 3,112,274 | -59.1% | | Loss on disposal of property, plant and equipment | 4,780 | 139 | +3338.1% | - The **loss for the period attributable to owners of the Company** was **RMB 523,148 thousand**, compared to a profit of **RMB 16,885 thousand** in the prior period[8](index=8&type=chunk) [7. (Loss) Earnings Per Share](index=16&type=section&id=7.%20(Loss)%20Earnings%20Per%20Share) For the six months ended June 30, 2025, the company's basic and diluted earnings per share both shifted from positive in the prior period to a loss of RMB 87.19 cents per share, reflecting a significant decline in profitability (Loss) Earnings Per Share (For the Six Months Ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | (Loss) Profit for the period attributable to owners of the Company for the purpose of calculating basic and diluted (loss) earnings per share | (523,148) | 16,885 | Not Applicable | | Weighted average number of ordinary shares for the purpose of calculating basic (loss) earnings per share | 600,000,000 | 600,000,000 | 0.0% | | Basic (Loss) Earnings Per Share (RMB cents) | (87.19) | 2.81 | Not Applicable | | Diluted (Loss) Earnings Per Share (RMB cents) | (87.19) | 2.81 | Not Applicable | - The exercise of share options was not assumed for the calculation of diluted (loss) earnings per share as the adjusted exercise prices of the vested share options were all higher than the average market price of the shares[29](index=29&type=chunk) [8. Dividends](index=16&type=section&id=8.%20Dividends) No interim dividend has been proposed for the period ended June 30, 2025, since the end of the reporting period, consistent with the prior year - No interim dividend has been proposed for the period ended June 30, 2025, since the end of the reporting period (June 30, 2024: nil)[30](index=30&type=chunk) [9. Property, Plant and Equipment and Right-of-Use Assets](index=17&type=section&id=9.%20Property%2C%20Plant%20and%20Equipment%20and%20Right-of-Use%20Assets) For the six months ended June 30, 2025, the Group's capital expenditure on property, plant and equipment significantly decreased, and no new land use rights were acquired, indicating a slowdown in capital investment Property, Plant and Equipment and Right-of-Use Assets Related Expenses (For the Six Months Ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Acquisition of property, plant and equipment and construction costs incurred | 65,139 | 432,236 | -84.9% | | Acquisition of new land use rights | – | 41,613 | Not Applicable | [10. Trade and Bills Receivables and Other Receivables](index=17&type=section&id=10.%20Trade%20and%20Bills%20Receivables%20and%20Other%20Receivables) As of June 30, 2025, the Group's total trade and bills receivables and other receivables decreased, with a significant drop in bills receivables. The company offers credit terms of up to 90 days to long-term customers and continues to recognize transferred bills receivables with full recourse Trade and Bills Receivables and Other Receivables (As of June 30, 2025) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Trade receivables from contracts with customers (net) | 38,468 | 44,577 | -13.7% | | Bills receivables | 61,826 | 112,592 | -45.1% | | Prepayments to suppliers | 480,042 | 541,000 | -11.3% | | Recoverable value-added tax | 129,898 | 127,988 | +1.5% | | Other prepayments, deposits and other receivables | 137,385 | 137,511 | -0.1% | | **Total** | **847,619** | **963,668** | **-12.0%** | - The Group grants credit terms of up to **90 days** to long-term customers with good credit quality and payment records[32](index=32&type=chunk) - As of June 30, 2025, bills receivables amounting to **RMB 39,449 thousand** were transferred to banks and suppliers with full recourse, and the Group continued to recognize their full carrying amounts[34](index=34&type=chunk) [11. Trade and Bills Payables and Other Payables and Accrued Expenses](index=20&type=section&id=11.%20Trade%20and%20Bills%20Payables%20and%20Other%20Payables%20and%20Accrued%20Expenses) As of June 30, 2025, the Group's total trade and bills payables, other payables, and accrued expenses decreased, primarily due to a reduction in construction payables, accrued staff costs, and other taxes payable Trade and Bills Payables and Other Payables and Accrued Expenses (As of June 30, 2025) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Trade payables | 121,142 | 113,481 | +6.8% | | Bills payables | 73,237 | 80,000 | -8.4% | | Accrued staff costs | 11,285 | 24,060 | -53.1% | | Construction payables | 81,136 | 144,248 | -43.8% | | Transportation payables | 11,155 | 7,572 | +47.3% | | Other taxes payable | 2,422 | 22,384 | -89.2% | | Other payables and accrued expenses | 13,956 | 31,669 | -55.9% | | **Total** | **314,333** | **423,414** | **-25.8%** | - The aging analysis of trade payables shows a significant **decrease in amounts within 30 days**, while amounts due **181 to 365 days and over 1 year increased**[37](index=37&type=chunk) - The maturity analysis of bills payables shows that bills due **within 30 days and 31 to 60 days were cleared**, while bills due **121 to 180 days increased**[37](index=37&type=chunk) [12. Amounts Due to Related Parties](index=22&type=section&id=12.%20Amounts%20Due%20to%20Related%20Parties) As of June 30, 2025, total amounts due to related parties decreased from RMB 3,177 thousand to RMB 1,201 thousand, mainly due to a reduction in amounts payable to Mr. Xu Songqing. These amounts are non-trade in nature, interest-free, unsecured, and repayable within twelve months Amounts Due to Related Parties (As of June 30, 2025) | Related Party | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Mr. Xu | 958 | 3,014 | -68.2% | | Mr. Chen Chunniu | 243 | 163 | +49.1% | | **Total** | **1,201** | **3,177** | **-62.2%** | - These amounts are **non-trade in nature**, **interest-free**, **unsecured**, and **repayable within twelve months** from their respective dates[38](index=38&type=chunk) [13. Borrowings](index=23&type=section&id=13.%20Borrowings) As of June 30, 2025, the Group's total borrowings slightly decreased, with both bank and other borrowings due within one year declining, while amounts shown under non-current liabilities increased, indicating an adjustment in borrowing structure Total Borrowings and Repayment Schedule (As of June 30, 2025) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Total fixed-rate borrowings | 2,204,722 | 2,207,722 | -0.1% | | Total variable-rate borrowings | 157,340 | 302,721 | -48.0% | | **Total Borrowings** | **2,362,062** | **2,510,443** | **-5.9%** | | Due within one year (bank borrowings) | 905,909 | 1,257,356 | -27.9% | | Due after one year (bank borrowings) | 1,252,015 | 981,101 | +27.6% | | Due within one year (other borrowings) | 191,777 | 216,466 | -11.4% | | Due after one year (other borrowings) | 12,361 | 55,520 | -77.8% | - The secured portion of the Group's borrowings is **collateralized by certain assets and equity interests in a subsidiary**, and some borrowings are also **personally guaranteed by certain directors** of the Company[40](index=40&type=chunk) [14. Share Capital](index=25&type=section&id=14.%20Share%20Capital) As of June 30, 2025, the company's authorized and issued share capital remained unchanged, consisting of ordinary shares with a par value of HKD 0.01 each Share Capital Details (As of June 30, 2025) | Metric | Number of Shares | Share Capital (HKD thousand) | | :--- | :--- | :--- | | Authorised share capital | 8,000,000,000 | 80,000 | | Issued share capital | 600,000,000 | 6,000 | - The share capital presented in the condensed consolidated statement of financial position was **RMB 4,999 thousand**, consistent with December 31, 2024[41](index=41&type=chunk) [15. Share-based Payments](index=25&type=section&id=15.%20Share-based%20Payments) For the six months ended June 30, 2025, the number of outstanding share options under the company's share option scheme decreased due to lapse, with no new grants or exercises. All outstanding share options have an exercise price of HKD 2.75 per share Movements in Share Options (For the Six Months Ended June 30, 2025) | Metric | Number of Share Options | | :--- | :--- | | Outstanding at December 31, 2024 | 25,272,720 | | Lapsed during the period | (10,109,088) | | Outstanding at June 30, 2025 | 15,163,632 | - As of June 30, 2025, all **15,163,632 outstanding share options** were exercisable at an exercise price of **HKD 2.75 per share**[46](index=46&type=chunk) - The **fair value of the share options** was determined to be **HKD 11,598,000** at the grant date[46](index=46&type=chunk) [16. Capital Commitments](index=28&type=section&id=16.%20Capital%20Commitments) As of June 30, 2025, the Group's contracted but unprovided capital expenditure for the acquisition of property, plant and equipment decreased but remained at RMB 100.9 million Capital Commitments (As of June 30, 2025) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Capital expenditure contracted but not provided for in the condensed consolidated financial statements in respect of acquisition of property, plant and equipment | 100,929 | 112,074 | -9.9% | [17. Pledged Assets](index=28&type=section&id=17.%20Pledged%20Assets) As of June 30, 2025, certain of the Group's borrowings were secured by its assets, with the total carrying value of pledged assets slightly decreasing, and trade receivables no longer serving as collateral Carrying Value of Pledged Assets (As of June 30, 2025) | Pledged Assets | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Trade receivables | – | 9,259 | Not Applicable | | Property, plant and equipment | 1,499,037 | 1,451,558 | +3.3% | | Right-of-use assets | 222,174 | 237,239 | -6.4% | | Restricted bank deposits | 129,906 | 179,431 | -27.6% | | **Total** | **1,851,117** | **1,877,487** | **-1.4%** | - Certain of the Group's borrowings are also **personally guaranteed by certain directors** of the Company[40](index=40&type=chunk) [18. Fair Value Measurement of Financial Instruments](index=29&type=section&id=18.%20Fair%20Value%20Measurement%20of%20Financial%20Instruments) Some of the Group's financial instruments are measured at fair value, with equity investments at fair value through other comprehensive income classified as Level 3 fair value measurements, valued using an asset-based approach. There were no transfers between fair value hierarchies during this interim period Fair Value of Financial Assets (As of June 30, 2025) | Financial Assets | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Fair Value Hierarchy Level | | :--- | :--- | :--- | :--- | | Equity investments at fair value through other comprehensive income | 1,405 | 1,405 | Level 3 | - The valuation technique uses an **asset-based approach** to estimate fair value by subtracting total liabilities from the fair market value of total assets of unlisted equity investments[51](index=51&type=chunk) - There were **no transfers between different levels of the fair value hierarchy** during the current interim period[51](index=51&type=chunk) [19. Related Party Disclosures](index=31&type=section&id=19.%20Related%20Party%20Disclosures) The Group has outstanding balances and lease liability interest expenses with related parties. Some borrowings are guaranteed by directors, and key management personnel compensation has decreased Nature and Amount of Related Party Transactions (For the Six Months Ended June 30) | Related Party | Nature of Transaction | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | :--- | | Hua Jin Holdings Pte. Ltd | Interest expense on lease liabilities | 8 | 1 | | Oriental Yijin Limited | Interest expense on lease liabilities | 11 | 12 | Key Management Personnel Compensation (For the Six Months Ended June 30) | Compensation Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Salaries, allowances and other benefits | 2,647 | 2,817 | | Contributions to retirement benefit schemes | 91 | 152 | | Share-based payment expenses | – | 245 | | **Total** | **2,738** | **3,214** | - Certain of the Group's borrowings are **secured by guarantees provided by certain directors** of the Company[56](index=56&type=chunk) [Management Discussion and Analysis](index=33&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the company's business and financial performance in H1 2025, highlighting significant declines in revenue and profit, and detailing the reasons for changes in various financial indicators. Management also outlines the company's future strategic transformation, leveraging Huajin Port and Metal Industrial Park to shift from single steel processing and sales to diversified port services, full metal industry chain processing, bulk raw material trade, logistics, and supply chain finance for sustainable growth [Business Review](index=33&type=section&id=Business%20Review) Huajin International Holdings Limited, a cold-rolled steel processing enterprise, experienced a significant performance decline in H1 2025, with revenue down 77.1% and a substantial loss. The company is actively transforming, investing in Huajin Port and Huajin Metal Industrial Park to expand port operations and related services, aiming to build a steel trade and distribution center in South China - The Group is primarily engaged in the production and sale of cold-rolled and galvanized steel products, and since 2024, has also been involved in **port operations and providing port and port-related services**[59](index=59&type=chunk) - Huajin Port has invested approximately **RMB 750.0 million**, with berths 1, 2, and 3 having obtained "Port Operation Permits" and commenced operations, capable of accommodating vessels with a deadweight tonnage of **30,000 tons**[59](index=59&type=chunk) - Huajin Metal Industrial Park has an annual processing capacity of **3.5 million tons**, and Huajin Port's annual throughput is expected to exceed **15 million tons**, aiming to establish a steel trade and distribution center in the Greater Bay Area[60](index=60&type=chunk) Key Financial Data for Business Review (For the Six Months Ended June 30) | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 732.9 | 3,206.5 | -77.1% | | (Loss) Profit Attributable to Owners of the Company | (523.1) | 16.9 | Not Applicable | | Sales volume of cold-rolled and galvanized steel products | 145,494 tons | 678,887 tons | -78.6% | | Acquisition of property, plant and equipment and construction costs incurred | 65.1 | 432.2 | -84.9% | [Financial Review](index=35&type=section&id=Financial%20Review) The Group's financial performance sharply deteriorated in H1 2025, with significant declines in revenue and sales volume leading to a substantial gross loss. Other income decreased, selling and administrative expenses were controlled, and finance costs reduced due to lower interest rates, but overall, a significant loss was recorded [Revenue](index=35&type=section&id=Revenue) The Group's revenue significantly decreased by 77.1% in H1 2025, primarily due to notable declines in both sales volume and average selling prices of cold-rolled and galvanized steel products. The China market remains the main revenue source, but the proportion of other sales increased Revenue Breakdown (For the Six Months Ended June 30) | Product Category | 2025 (RMB thousand) | 2025 (%) | 2024 (RMB thousand) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Sales of cold-rolled steel products | 341,036 | 46.6 | 1,737,573 | 54.2 | | Sales of galvanized steel products | 209,050 | 28.5 | 1,148,899 | 35.8 | | Sales of hot-rolled steel products and others | 182,820 | 24.9 | 319,991 | 10.0 | | **Total Revenue** | **732,906** | **100.0** | **3,206,463** | **100.0** | - Sales volume of cold-rolled steel products decreased by **78.3% to 91,262 tons**, and galvanized steel products sales volume decreased by **79.1% to 54,232 tons**[67](index=67&type=chunk) - The average selling price of cold-rolled steel products fell from **RMB 4,137 per ton to RMB 3,737 per ton**, and galvanized steel products' average selling price fell from **RMB 4,437 per ton to RMB 3,855 per ton**[68](index=68&type=chunk) - Domestic sales in the China market contributed **over 99.6% of revenue**, with other income (scrap steel sales and processing services) accounting for approximately **24.9% of revenue** (2024: 10.0%)[68](index=68&type=chunk) [Cost of Sales](index=37&type=section&id=Cost%20of%20Sales) The Group's cost of sales decreased by 59.1% in H1 2025, primarily due to lower direct material costs resulting from decreased sales volume. Utility and direct labor expenses also declined due to reduced production, while depreciation expenses slightly increased Cost of Sales Breakdown (For the Six Months Ended June 30) | Cost Category | 2025 (RMB thousand) | 2025 (%) | 2024 (RMB thousand) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Direct materials | 1,118,522 | 87.9 | 2,865,012 | 92.1 | | Utilities | 32,470 | 2.6 | 104,919 | 3.4 | | Direct labour | 35,331 | 2.8 | 47,511 | 1.5 | | Depreciation expenses | 49,958 | 3.9 | 46,294 | 1.5 | | Consumables | 32,020 | 2.4 | 43,089 | 1.4 | | Others | 4,818 | 0.4 | 5,449 | 0.1 | | **Total Cost of Sales** | **1,273,119** | **100.0** | **3,112,274** | **100.0** | - The decrease in direct material costs was mainly due to **reduced sales volume of cold-rolled steel products, galvanized steel products, and hot-rolled steel coils**[72](index=72&type=chunk) - **Utility expenses decreased by 69.0% to RMB 32.5 million**, and **direct labour decreased by 25.7% to RMB 35.3 million**, primarily due to reduced production volume[73](index=73&type=chunk) - **Depreciation expenses increased by 8.0% to RMB 50.0 million**, mainly due to increased depreciation of property, plant and equipment[74](index=74&type=chunk) [Gross Profit](index=38&type=section&id=Gross%20Profit) The Group shifted from gross profit to a gross loss of RMB 540.2 million in H1 2025, with a gross loss margin as high as 73.7%. This was primarily attributed to declining steel product profit margins, global punitive tariffs leading to shrinking downstream demand, delayed or canceled orders, and resulting non-refundable commitment fees and deposits Gross (Loss) Profit and Gross (Loss) Profit Margin (For the Six Months Ended June 30) | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Gross (Loss) Profit | (540.2) | 94.2 | Not Applicable | | Gross (Loss) Profit Margin (%) | (73.7%) | 2.9% | Not Applicable | - The gross loss was primarily due to a **decrease in profit margins** from the sale of all steel products[76](index=76&type=chunk) - The imposition of **punitive tariffs on steel products by major importing countries globally** led to a significant **decline in sales volume and average selling prices** of downstream customers' exported goods, resulting in shrinking end-market demand[76](index=76&type=chunk) - The sharp drop in orders resulted in the **failure to meet minimum purchase volume requirements** in long-term supply contracts with steel mills, triggering **non-refundable commitment fees and deposits**, which increased the cost of sales[76](index=76&type=chunk) [Other Income, Other Gains and Losses (Net)](index=39&type=section&id=Other%20Income%2C%20Other%20Gains%20and%20Losses%20(Net)) The Group's other income, other gains and losses (net) shifted from a net gain to a net loss of RMB 2.1 million in H1 2025, primarily due to reduced additional VAT credit deductions, decreased unrealized gains on derivative financial instruments, and increased losses on disposal of property, plant and equipment Other Income, Other Gains and Losses (Net) (For the Six Months Ended June 30) | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Other Income, Other Gains and Losses (Net) | (2.1) | 24.5 | Not Applicable | - The net loss was mainly due to a **decrease of RMB 17.2 million in additional VAT credit deductions**, a **decrease of RMB 3.0 million in unrealized gains on derivative financial instruments** from commodity futures contracts, and an **increase of RMB 4.6 million in loss on disposal of property, plant and equipment**[78](index=78&type=chunk) [Selling Expenses](index=39&type=section&id=Selling%20Expenses) The Group's selling expenses decreased by 17.9% to RMB 13.8 million in H1 2025, primarily due to lower revenue Selling Expenses (For the Six Months Ended June 30) | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Selling Expenses | 13.8 | 16.8 | -17.9% | - The decrease in selling expenses was primarily due to the **decrease in revenue** for the six months ended June 30, 2025[79](index=79&type=chunk) [Administrative Expenses](index=39&type=section&id=Administrative%20Expenses) The Group's administrative expenses decreased by 13.3% to RMB 32.0 million in H1 2025, primarily due to reductions in general administrative salaries and staff benefits, consumables, and entertainment expenses Administrative Expenses (For the Six Months Ended June 30) | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Administrative Expenses | 32.0 | 36.9 | -13.3% | - The decrease in administrative expenses was mainly due to a **reduction of approximately RMB 1.9 million in general administrative salaries and staff benefits**, a **reduction of approximately RMB 1.5 million in consumables**, and a **reduction of approximately RMB 1.5 million in entertainment expenses**[80](index=80&type=chunk) [Investment Income](index=39&type=section&id=Investment%20Income) The Group's investment income was nil in H1 2025, compared to RMB 6.1 million recorded in the prior period, primarily from net realized gains on derivative financial instruments from commodity futures contracts Investment Income (For the Six Months Ended June 30) | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Investment Income | – | 6.1 | Not Applicable | - Investment income in the corresponding period of 2024 was mainly derived from **net realized gains on derivative financial instruments** from commodity futures contracts[81](index=81&type=chunk) [Finance Costs](index=40&type=section&id=Finance%20Costs) The Group's finance costs decreased by 44.5% to RMB 29.5 million in H1 2025, primarily attributable to a reduction in the general interest rates for most borrowings Finance Costs (For the Six Months Ended June 30) | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Finance Costs | 29.5 | 53.2 | -44.5% | - The decrease in finance costs was primarily attributable to a **lower general interest rate** for most borrowings for the six months ended June 30, 2025, compared to the same period last year[82](index=82&type=chunk) [Income Tax Expense](index=40&type=section&id=Income%20Tax%20Expense) The Group recorded a deferred tax credit of RMB 93.7 million in H1 2025, compared to an income tax expense in the prior period Income Tax Credit (Expense) (For the Six Months Ended June 30) | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Deferred tax credit (expense) | (93.7) | (0.8) | Not Applicable | | Income tax expense | – | 3.4 | Not Applicable | [(Loss) Profit for the Period](index=40&type=section&id=(Loss)%20Profit%20for%20the%20Period) The Group shifted from a profit in the prior period to a loss attributable to owners of the Company of RMB 523.1 million in H1 2025 (Loss) Profit for the Period (For the Six Months Ended June 30) | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | (Loss) Profit Attributable to Owners of the Company | (523.1) | 16.9 | Not Applicable | [Liquidity and Financial Resources](index=40&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's liquidity position deteriorated, with a significant decrease in bank balances and cash, a notable increase in both net current liabilities and net liabilities, a decline in the current ratio, and an increase in the gearing ratio. Nevertheless, the Board expects existing credit facilities to be renewed, with directors providing personal guarantees to support the Group's financial commitments Overview of Liquidity and Financial Resources (As of June 30, 2025) | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Bank balances and cash | 5.2 | 35.3 | -85.3% | | Restricted bank deposits | 129.9 | 179.4 | -27.6% | | Net current liabilities | (1,096.1) | (754.5) | -45.3% | | Net (liabilities) assets | (99.6) | 423.8 | Not Applicable | | Current ratio (%) | 48.4% | 66.4% | -18.0pp | | Total borrowings | 2,362.1 | 2,510.4 | -5.9% | | Total assets | 3,302.5 | 3,716.7 | -11.1% | | Gearing ratio (%) | 71.5% | 67.5% | +4.0pp | - The Group's total bank facilities amounted to approximately **RMB 2,855.2 million**, of which approximately **RMB 1,208.8 million remained unutilised**[87](index=87&type=chunk) - Certain of the Group's borrowings are **secured by assets** and **personally guaranteed by Mr. Xu Songqing and Mr. Luo Canwen**, with Mr. Xu also agreeing to provide necessary financial support[88](index=88&type=chunk) [Foreign Exchange Risk](index=41&type=section&id=Foreign%20Exchange%20Risk) The Group faces foreign exchange risk from USD to RMB fluctuations, with some revenue settled in USD and bank balances denominated in USD, HKD, and SGD. Currently, there is no foreign exchange hedging policy, but management closely monitors and considers hedging significant risks - The Group is exposed to **fluctuations in the exchange rate of USD against RMB**, with some revenue derived from **USD-denominated sales to overseas customers**[89](index=89&type=chunk) - Bank balances denominated in **USD, HKD, and SGD** also expose the Group to foreign exchange risk[89](index=89&type=chunk) - The Group currently has **no foreign exchange hedging policy**, but management closely monitors and considers hedging significant foreign exchange risks[89](index=89&type=chunk) [Financial Instruments](index=41&type=section&id=Financial%20Instruments) During the review period, the Group did not enter into any financial instruments for hedging purposes, except for commodity futures contracts - During the review period, the Group did not enter into any financial instruments for hedging purposes, **except for commodity futures contracts**[90](index=90&type=chunk) [Significant Acquisitions and Disposals](index=41&type=section&id=Significant%20Acquisitions%20and%20Disposals) For the six months ended June 30, 2025, the Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group had **no significant acquisitions or disposals of subsidiaries, associates, or joint ventures**[91](index=91&type=chunk) [Borrowings](index=42&type=section&id=Borrowings) Details of the Group's borrowings as of June 30, 2025, are disclosed in Note 13 to the condensed consolidated financial statements - Details of the Group's borrowings as of June 30, 2025, are set out in **Note 13** to the condensed consolidated financial statements[93](index=93&type=chunk) [Capital Structure](index=42&type=section&id=Capital%20Structure) Details of the Group's share capital are disclosed in Note 14 to the condensed consolidated financial statements - Details of the Group's share capital are set out in **Note 14** to the condensed consolidated financial statements[94](index=94&type=chunk) [Capital Commitments](index=42&type=section&id=Capital%20Commitments) Details of the Group's capital commitments are disclosed in Note 16 to the condensed consolidated financial statements - Details of the Group's capital commitments are set out in **Note 16** to the condensed consolidated financial statements[95](index=95&type=chunk) [Pledged Assets](index=42&type=section&id=Pledged%20Assets) Details of the Group's pledged assets are disclosed in Note 17 to the condensed consolidated financial statements - Details of the Group's pledged assets are set out in **Note 17** to the condensed consolidated financial statements[96](index=96&type=chunk) [Contingent Liabilities](index=42&type=section&id=Contingent%20Liabilities) During the review period, the Company provided guarantees to banks as collateral for credit facilities granted to certain of its subsidiaries. As of June 30, 2025, the Group had no guarantees provided to any third parties and no contingent liabilities - The Company provided **guarantees to banks** as collateral for credit facilities granted to certain of its subsidiaries in the PRC[97](index=97&type=chunk) - As of June 30, 2025, the Group had **no guarantees provided to any third parties** and **no contingent liabilities** (December 31, 2024: nil)[97](index=97&type=chunk) [Employees](index=42&type=section&id=Employees) As of June 30, 2025, the Group's total number of employees decreased to 1,165, and total staff costs also declined. The company has a share option scheme to incentivize employees, but no share-based payment expenses were recognized in this period Employees and Staff Costs (For the Six Months Ended June 30) | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total number of full-time employees | 1,165 | 1,492 | -22.0% | | Total staff costs (including directors' emoluments) | RMB 56.6 million | RMB 70.3 million | -19.5% | - The Company has a **share option scheme** to encourage and reward eligible employees (including directors) for their contributions to the Group's performance and business development based on individual performance[98](index=98&type=chunk) - For the six months ended June 30, 2025, **no share-based payment expenses were recognized** (corresponding period in 2024: RMB 0.2 million)[98](index=98&type=chunk) [Future Outlook](index=43&type=section&id=Future%20Outlook) Facing market volatility, Huajin Group is actively adjusting its strategy, leveraging Huajin Metal Industrial Park and Huajin Port to build a full industry chain ecosystem encompassing "raw material centralized procurement—logistics—warehousing and processing—production—finished product warehousing—logistics distribution—industry-finance trade—financial supply chain." The company plans to expand into port steel handling, metal processing and warehousing platforms, bulk raw material trade, logistics and ferrous metal trading market services, and diversified trade and import/export businesses, aiming to transform from a single cold-rolled coil production and sales model to a diversified, integrated profit model, and to create a diversified industrial group integrating port handling, metal processing, warehousing logistics, raw material trade, supply chain finance, and cross-border trade [Huajin Group's Future Development Direction and Diversified Profit Model](index=43&type=section&id=Huajin%20Group%27s%20Future%20Development%20Direction%20and%20Diversified%20Profit%20Model) Huajin Group plans to leverage the advantages of Huajin Metal Industrial Park and Huajin Port to build a full industry chain ecosystem, promoting a shift from a single cold-rolled coil production and sales profit model to a diversified and integrated one - The Group plans to build a **full industry chain ecosystem** encompassing "raw material centralized procurement — logistics — warehousing and processing — production — finished product warehousing — logistics distribution — industry-finance trade — financial supply chain"[100](index=100&type=chunk) - It is expected to promote the transformation of the profit model from a single cold-rolled coil production and sales to a **diversified and integrated model**[100](index=100&type=chunk) [Leveraging Port Advantages to Expand Port Steel Handling and Integrated Services](index=43&type=section&id=Leveraging%20Port%20Advantages%20to%20Expand%20Port%20Steel%20Handling%20and%20Integrated%20Services) Huajin Port has three 30,000-ton berths with an annual throughput capacity of 20 million tons, capable of handling all types of cargo. Future plans include introducing container transshipment, lightering, bonded warehousing, and cross-border trade functions to create a key port hub in the Greater Bay Area and significantly reduce overall steel costs - Huajin Port has completed **three 30,000-ton berths**, with an annual throughput capacity of up to **20 million tons**, capable of handling all types of cargo including containers, steel coils, profiles, and bulk goods[101](index=101&type=chunk) - It is expected to achieve an annual handling capacity of **18 to 20 million tons** after reaching full production[101](index=101&type=chunk) - Future plans include introducing functions such as **container transshipment, lightering, bonded warehousing, and cross-border trade** to build a key port hub in the Greater Bay Area and significantly **reduce overall costs for southbound steel** through one-stop services[101](index=101&type=chunk) [Building a Full Metal Industry Chain Processing and Warehousing Platform](index=44&type=section&id=Building%20a%20Full%20Metal%20Industry%20Chain%20Processing%20and%20Warehousing%20Platform) Huajin Industrial Park is equipped with various processing equipment, boasting an annual processing capacity of 3 million tons, offering integrated processing and warehousing services. Future plans include establishing an IoT platform integrating IoT, edge computing, and AI analysis for full-process digital management, and striving to build a modern public warehouse for metal futures and spot regulated trade delivery in the Greater Bay Area - Huajin Industrial Park is currently equipped with processing equipment such as **hot-rolled flattening machines, slitting machines, and cold-rolled flattening machines**, with an annual processing capacity of **3 million tons**[102](index=102&type=chunk) - In the future, an **IoT platform integrating IoT, edge computing, and AI analysis** will be built to implement **full-process digital management** of goods inbound, outbound, and in-stock management[102](index=102&type=chunk) - Strive to build a **modern public warehouse for metal futures and spot regulated trade delivery** in the Greater Bay Area[102](index=102&type=chunk) [Developing Bulk Raw Material Trade such as High-Calcium Stone and Construction Sand and Gravel](index=44&type=section&id=Developing%20Bulk%20Raw%20Material%20Trade%20such%20as%20High-Calcium%20Stone%20and%20Construction%20Sand%20and%20Gravel) Leveraging its port navigation capabilities and rear storage yard resources, the Group plans to directly procure high-calcium stone and construction sand and gravel from premium mining areas in Guangxi, establishing a direct supply from production areas and port stockpiling model. This will be combined with a "two-way cargo flow" model to form long-term partnerships with steel mills and expand market coverage - Leveraging the port's navigation capabilities and the advantage of **600 mu of rear storage yard resources**, directly procure **high-calcium stone and construction sand and gravel** from premium mining areas in Guangxi, forming a direct supply from production areas and port stockpiling model[103](index=103&type=chunk) - Sales during the **dry season from October to April** each year are expected to achieve **higher gross profit margins**[103](index=103&type=chunk) - Combine with the "two-way cargo flow" model for bulk commodity distribution services to form **long-term partnerships with steel mills** and expand market coverage in key national regions[103](index=103&type=chunk) [Expanding Logistics and Ferrous Metal Trading Market Services](index=45&type=section&id=Expanding%20Logistics%20and%20Ferrous%20Metal%20Trading%20Market%20Services) The Group has launched its road transportation segment, with an estimated annual land transport demand of 6 to 10 million tons within the park. Concurrently, it will establish partnerships with steel mills and large trading enterprises to promote supply chain finance businesses such as centralized steel procurement, financing trade, and consignment sales, and leverage Huajin Port to build an integrated online and offline metal trading market - The Group has launched its **road transportation segment**, with an estimated annual land transport demand of **6 to 10 million tons** within the park[105](index=105&type=chunk) - Establish stable cooperative relationships with multiple domestic steel mills and large state-owned trading enterprises to promote **supply chain finance businesses** such as **centralized steel procurement, financing trade, and consignment sales**[105](index=105&type=chunk) - Leveraging Huajin Port, in collaboration with major steel mills and steel traders, build a **metal trading market** covering all types of steel products, creating an **integrated online and offline metal trading demonstration zone**[105](index=105&type=chunk) [Developing Diversified Trade and Import/Export Businesses](index=45&type=section&id=Developing%20Diversified%20Trade%20and%20Import%2FExport%20Businesses) The Group intends to expand its import and export businesses, leveraging its 30,000-ton berth advantage to gradually extend into bulk commodity trade areas such as various steel products, stainless steel, timber, grain, white sugar, and high-calcium stone, thereby diversifying operational risks through a richer cargo structure - The Group intends to **expand its import and export businesses** and open up cross-border trade channels[106](index=106&type=chunk) - Leveraging the advantage of its **30,000-ton berth**, gradually expand into bulk commodity trade areas such as **various steel products, stainless steel, timber, grain, white sugar, and high-calcium stone**[106](index=106&type=chunk) - **Diversify operational risks** by enriching the cargo type structure[106](index=106&type=chunk) [Strategic Vision](index=45&type=section&id=Strategic%20Vision) Leveraging the river-sea intermodal transport advantages of the Xijiang Golden Waterway and Yamen Estuary, the Group will build a diversified industrial group integrating port handling, metal processing, warehousing logistics, raw material trade, supply chain finance, and cross-border trade, achieving stable and sustainable growth - The Group will leverage the **river-sea intermodal transport advantages** of the Xijiang Golden Waterway and Yamen Estuary to build a **diversified industrial group** integrating **port handling, metal processing, warehousing logistics, raw material trade, supply chain finance, and cross-border trade**[107](index=107&type=chunk) - Future profitability will be achieved through **synergies across diversified businesses**, leading to **stable and sustainable growth**[107](index=107&type=chunk) [Other Information](index=46&type=section&id=Other%20Information) This section discloses equity interests of directors and substantial shareholders, changes in the share option scheme, board member changes, company securities dealing policy, interim dividend policy, compliance with corporate governance practices, and significant post-reporting period events, including changes in company secretary and authorized representatives [Disclosure of Interests](index=46&type=section&id=Disclosure%20of%20Interests) As of June 30, 2025, Mr. Xu Songqing and Mr. Luo Canwen, as directors and chief executives, held long positions of 65.25% and 9.00% of the company's shares, respectively. Major shareholders Haiyi Limited and Intrend Ventures Limited held 391,500,000 shares, and Zhongcheng Limited held 54,000,000 shares Directors' and Chief Executives' Long Positions in the Company's Shares (As of June 30, 2025) | Name of Director | Nature of Interest | Number of Shares Held | Percentage of the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Xu Songqing | Beneficial owner and interest in controlled corporation | 391,500,000 | 65.25% | | Mr. Luo Canwen | Beneficial owner and interest in controlled corporation | 54,000,000 | 9.00% | Directors' Long Positions in Relevant Shares of the Company (As of June 30, 2025) | Name of Director | Nature of Interest | Number of Relevant Shares Involved in Share Options Granted | Percentage of the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Xu Songqing | Beneficial owner | 1,090,909 | 0.18% | | Mr. Xu Jianhong | Beneficial owner | 1,090,909 | 0.18% | | Mr. Luo Canwen | Beneficial owner | 1,090,909 | 0.18% | | Mr. Xu Songman | Beneficial owner | 1,090,909 | 0.18% | Substantial Shareholders' and Other Persons' Long Positions in the Company's Shares (As of June 30, 2025) | Name of Shareholder | Nature of Interest | Number of Shares Held | Percentage of the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Haiyi Limited | Beneficial owner | 391,500,000 | 65.25% | | Intrend Ventures Limited | Interest in controlled corporation | 391,500,000 | 65.25% | | Zhongcheng Limited | Beneficial owner | 54,000,000 | 9.00% | [Share Option Scheme](index=49&type=section&id=Share%20Option%20Scheme) The company's share option scheme aims to incentivize eligible persons, with the total number of shares available for issue not exceeding 10% of the issued share capital, and the total number of shares issuable under all granted and outstanding share options not exceeding 30% of the issued shares at any time. As of June 30, 2025, the number of outstanding share options decreased due to lapse, with the remaining scheme period being approximately 0.56 years - The scheme aims to **grant share options to eligible persons** as an incentive or reward for their contributions to the Group's performance[118](index=118&type=chunk) - The total number of shares that may be issued upon exercise of all options granted under the scheme and any other share option schemes of the Company shall not exceed **60,000,000 shares**, representing **10% of the Company's issued share capital** upon listing[120](index=120&type=chunk) - As of June 30, 2025, the number of share options available for grant under the scheme's authorized limit was **44,836,368**, and the **remaining life of the share option scheme was approximately 0.56 years**[120](index=120&type=chunk)[128](index=128&type=chunk) - For the six months ended June 30, 2025, a total of **10,109,088 share options lapsed**, resulting in the number of outstanding share options decreasing to **15,163,632**[129](index=129&type=chunk)[131](index=131&type=chunk) [Changes in Directors' Information](index=54&type=section&id=Changes%20in%20Directors%27%20Information) For the six months ended June 30, 2025, several changes occurred in the Board of Directors, including Mr. Chan Oi Fat's appointment as an independent non-executive director and Chairman of the Audit Committee, Mr. Xu Jianhong's resignation as Vice Chairman and re-designation as a non-executive director, Mr. Xu Songqing's appointment as Chairman of the Compliance Committee, and Mr. Sun Duowei's termination of directorship due to his passing - Mr. Chan Oi Fat was appointed as an **independent non-executive director, Chairman of the Audit Committee, and a member of the Nomination Committee, Remuneration Committee, and Compliance Committee** on March 27, 2025[132](index=132&type=chunk) - Mr. Xu Jianhong **resigned as Vice Chairman** of the Company and was **re-designated as a non-executive director** on April 17, 2025[132](index=132&type=chunk) - Mr. Xu Songqing was appointed as **Chairman of the Company's Compliance Committee** on April 17, 2025[132](index=132&type=chunk) - Mr. Sun Duowei's directorship was **terminated due to his passing** on February 28, 2025[132](index=132&type=chunk) [Directors' Rights to Acquire Shares or Debentures](index=55&type=section&id=Directors%27%20Rights%20to%20Acquire%20Shares%20or%20Debentures) Except for disclosed share option interests, for the six months ended June 30, 2025, neither the Company, its holding company, nor any of its subsidiaries or associated corporations were parties to any arrangements enabling the Company's directors and chief executives to acquire benefits through the purchase of shares or debentures - Except for the disclosed share option interests, for the six months ended June 30, 2025, neither the Company, its holding company, nor any of its subsidiaries or associated corporations were parties to any arrangements enabling the Company's directors and chief executives (including their respective spouses and children under 18) to acquire benefits through the purchase of shares or relevant shares or debentures of the Company or any of its associated corporations[133](index=133&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=55&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the six months ended June 30, 2025, **neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities**[134](index=134&type=chunk) [Interim Dividend](index=55&type=section&id=Interim%20Dividend) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Directors do 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)[135](index=135&type=chunk) [Corporate Governance Practices](index=55&type=section&id=Corporate%20Governance%20Practices) The Company is committed to achieving high standards of corporate governance, has adopted the code provisions of the Corporate Governance Code set out in Appendix 14 to the Listing Rules, and complied with applicable code provisions for the six months ended June 30, 2025 - The Company has applied sound corporate governance principles and adopted the **code provisions of the Corporate Governance Code** set out in Appendix 14 to the Listing Rules[136](index=136&type=chunk) - For the six months ended June 30, 2025, the Company has **complied with the applicable code provisions** of the Corporate Governance Code set out in Appendix C1 to the Listing Rules[136](index=136&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors of Listed Issuers](index=56&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors%20of%20Listed%20Issuers) The Company has adopted the Model Code set out in Appendix C3 to the Listing Rules and has received confirmation from all directors that they complied with the required standards of the Model Code for the six months ended June 30, 2025 - The Company has adopted the **Model Code** set out in Appendix C3 to the Listing Rules[138](index=138&type=chunk) - Following specific enquiries with each Director, the Company has received confirmation from all Directors that they have **complied with the required standards** set out in the Model Code for the six months ended June 30, 2025[138](index=138&type=chunk) [Events After the Reporting Period](index=56&type=section&id=Events%20After%20the%20Reporting%20Period) After the reporting period, Mr. Wong Chak Keung resigned as the company secretary and financial controller, leading to a temporary non-compliance with Listing Rules regarding authorized representatives. Subsequently, Ms. Cheung Lai Kuen and Ms. Lam Hoi Ki were successively appointed as company secretaries, bringing the company back into compliance - Mr. Wong Chak Keung **resigned as the company secretary and financial controller** of the Company on July 3, 2025, and ceased to be an authorized representative of the Company[139](index=139&type=chunk) - Following the appointment of Ms. Cheung Lai Kuen on July 7, 2025, the Company **re-complied with the requirements of Rule 3.05** of the Listing Rules of the Stock Exchange[139](index=139&type=chunk) - After Ms. Cheung's resignation on July 10, 2025, the Company appointed Ms. Lam Hoi Ki as company secretary on the same day, **re-complying with the requirements of Rule 3.28** of the Listing Rules[139](index=139&type=chunk) [Sufficiency of Public Float](index=57&type=section&id=Sufficiency%20of%20Public%20Float) Based on publicly available information and to the best of the Directors' knowledge, the Company maintained the prescribed public float as required by the Listing Rules for the six months ended June 30, 2025, and up to the date of this report - For the six months ended June 30, 2025, and up to the date of this report, the Company has **maintained the prescribed public float** as required by the Listing Rules[141](index=141&type=chunk) [Audit Committee](index=57&type=section&id=Audit%20Committee) The Company has established an Audit Committee in accordance with the Corporate Governance Code, comprising three independent non-executive directors, with Mr. Chan Oi Fat as Chairman, responsible for reviewing and overseeing the Group's financial reporting process - The Audit Committee comprises **three independent non-executive directors**: Mr. Chan Oi Fat, Mr. Au Kai Yuen, and Ms. Yip Nga Ting[142](index=142&type=chunk) - **Mr. Chan Oi Fat serves as the Chairman** of the Audit Committee[142](index=142&type=chunk) - The Audit Committee's responsibilities include **reviewing and overseeing the Group's financial reporting process**[142](index=142&type=chunk) [Review of Financial Statements](index=57&type=section&id=Review%20of%20Financial%20Statements) The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and is satisfied that they are prepared in accordance with applicable accounting standards and fairly present the financial position and results - The Audit Committee has **reviewed the Group's unaudited condensed consolidated financial statements** for the six months ended June 30, 2025[143](index=143&type=chunk) - Based on its review and discussions with management, the Audit Committee is satisfied that the financial statements are **prepared in accordance with applicable accounting standards** and **fairly present the Group's financial position and