[Announcement Overview](index=1&type=section&id=%E5%85%AC%E5%91%8A%E6%A6%82%E8%A7%88) This section provides the scope and statement of the unaudited consolidated interim results for H1 2025, including comparative data for H1 2024 [Announcement Statement and Scope](index=1&type=section&id=Announcement%20Statement%20and%20Scope) This announcement details the unaudited consolidated interim results for H1 2025, with comparative data for H1 2024 - This announcement reports the unaudited consolidated interim results for the six months ended June 30, 2025, with comparative data for the same period in 2024[3](index=3&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the Group's unaudited consolidated financial performance and position, highlighting significant declines in revenue and gross profit, a widened period loss, and changes in assets and liabilities [Consolidated Statement of Profit or Loss](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) Revenue decreased by 20% to RMB2,153,490 thousand, gross profit fell by 40%, and operating profit turned to a loss, resulting in a period loss of RMB318,743 thousand and basic loss per share of RMB0.15 Consolidated Statement of Profit or Loss Key Data (For the six months ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | Change | | :--- | :--- | :--- | :--- | | Revenue | 2,153,490 | 2,683,496 | -20% | | Cost of Sales | (1,990,741) | (2,413,143) | -18% | | Gross Profit | 162,749 | 270,353 | -40% | | Other Income | 142,367 | 72,118 | +97% | | Distribution Costs | (59,750) | (50,464) | +18% | | Administrative Expenses | (177,038) | (177,787) | -0.4% | | Impairment Losses on Trade and Contract Assets | (30,698) | (16,718) | +84% | | Other Expenses | (95,638) | (19,438) | +392% | | Operating (Loss)/Profit | (58,008) | 78,064 | Turned from profit to loss | | Finance Costs | (231,089) | (229,773) | +0.6% | | Share of Profits less Losses of Joint Ventures | (1,345) | 1,837 | Turned from profit to loss | | Loss Before Tax | (290,442) | (149,872) | +94% | | Income Tax | (28,301) | 12,984 | Turned from credit to expense | | Loss for the Period | (318,743) | (136,888) | +133% | | Loss Attributable to Equity Holders of the Company | (258,451) | (119,006) | +117% | | Basic and Diluted Loss Per Share (RMB) | (0.15) | (0.07) | +114% | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group reported a total comprehensive loss of RMB258,961 thousand, a narrower loss compared to the prior year, mainly due to positive exchange differences on financial statement translation Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data (For the six months ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Loss for the Period | (318,743) | (136,888) | | Other Comprehensive Income (after tax and reclassification) | | | | - Equity securities at fair value through other comprehensive income | 126 | 326 | | - Exchange differences on translation of financial statements into presentation currency | 59,656 | (313,859) | | Total Comprehensive Income for the Period | (258,961) | (450,421) | | Attributable to: | | | | Equity holders of the Company | (198,677) | (432,559) | | Non-controlling interests | (60,284) | (17,862) | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total net assets decreased by 29.3% to RMB625,065 thousand, and net current liabilities expanded to RMB7,179,129 thousand, indicating increased liquidity pressure Consolidated Statement of Financial Position Key Data (As of June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | Change | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Non-current Assets | 10,241,865 | 10,462,116 | -2.1% | | Current Assets | 3,234,569 | 3,760,649 | -14.0% | | **Liabilities** | | | | | Current Liabilities | 10,413,698 | 10,560,725 | -1.4% | | Non-current Liabilities | 2,437,671 | 2,778,014 | -12.3% | | **Equity** | | | | | Net Assets | 625,065 | 884,026 | -29.3% | | Total Equity Attributable to Equity Holders of the Company | 66,375 | 265,052 | -75.0% | | Non-controlling Interests | 558,690 | 618,974 | -9.7% | [Notes to the Unaudited Interim Financial Information](index=6&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Information) This section details the basis of preparation, changes in accounting policies, revenue and segment reporting, other income, loss before tax, income tax, loss per share, and various financial statement items, including significant post-period events [1. Company Information](index=6&type=section&id=1.%20Company%20Information) China Glass Holdings Limited, incorporated in Bermuda and listed on HKEX, primarily engages in glass product manufacturing, marketing, distribution, and related technical services - Company is incorporated in Bermuda, with shares listed on the Hong Kong Stock Exchange, primarily engaged in the production, marketing, and distribution of glass products and related technical services[10](index=10&type=chunk) [2. Basis of Preparation](index=6&type=section&id=2.%20Basis%20of%20Preparation) Prepared under HKAS 34, the report shows a net loss of RMB318,743 thousand and significant post-period loan defaults totaling RMB8,007,307 thousand, raising material uncertainty about the Group's going concern - This interim financial report is prepared in accordance with Hong Kong Accounting Standard 34[11](index=11&type=chunk)[12](index=12&type=chunk) - As of June 30, 2025, the Group recorded a **net loss of RMB318,743 thousand** and **net current liabilities of RMB7,179,129 thousand**[13](index=13&type=chunk) - Subsequent to the reporting period, the Group defaulted on **RMB1,295,854 thousand** in borrowings, triggering cross-default clauses on an additional **RMB6,711,453 thousand**, making a total of **RMB8,007,307 thousand** immediately repayable, which raises material uncertainty about the Group's ability to continue as a going concern[13](index=13&type=chunk)[111](index=111&type=chunk) - Management is actively negotiating debt restructuring, seeking strategic investors, and has received financial support from the major shareholder, Kaisheng Group, including **RMB1,177,612 thousand** in loans and **RMB1,253,777 thousand** in trade and other payables, with no repayment demands within the next 12 months[14](index=14&type=chunk)[16](index=16&type=chunk) [3. Changes in Accounting Policies](index=9&type=section&id=3.%20Changes%20in%20Accounting%20Policies) The Group applied HKAS 21 amendments, which had no material impact due to the absence of foreign currency non-exchangeable transactions, and no other new standards were adopted - The Group has applied the amendments to Hong Kong Accounting Standard 21, but these had no material impact on this interim report due to the absence of foreign currency non-exchangeable transactions[17](index=17&type=chunk) - No other new standards or interpretations not yet effective were adopted in this accounting period[18](index=18&type=chunk) [4. Revenue and Segment Reporting](index=9&type=section&id=4.%20Revenue%20and%20Segment%20Reporting) The Group manages five reportable segments, with total revenue decreasing by 20% to RMB2,153,490 thousand, primarily due to declines in colorless and energy-saving glass, while overseas markets showed growth - The Group's business is managed across five reportable segments: colorless glass, colored glass, coated glass, energy-saving and new energy glass products, and design and installation related services[19](index=19&type=chunk) Revenue by Major Product or Service Line (For the six months ended June 30) | Product or Service Line | 2025 (RMB'000) | 2024 (RMB'000) | Change | | :--- | :--- | :--- | :--- | | Sales of glass products | 1,989,647 | 2,501,835 | -20.5% | | Revenue from service contracts | 109,571 | 150,271 | -27.1% | | Sales of other products | 54,272 | 31,390 | +72.9% | | **Total Revenue** | **2,153,490** | **2,683,496** | **-19.7%** | Revenue by Customer Geographical Location (For the six months ended June 30) | Geographical Location | 2025 (RMB'000) | 2024 (RMB'000) | Change | | :--- | :--- | :--- | :--- | | Mainland China and Hong Kong | 1,292,586 | 1,921,999 | -32.7% | | Nigeria | 220,626 | 163,219 | +35.2% | | Middle East | 161,243 | 145,902 | +10.5% | | Kazakhstan | 95,863 | 64,775 | +48.0% | | Other countries | 383,172 | 387,601 | -1.1% | | **Total Revenue** | **2,153,490** | **2,683,496** | **-19.7%** | [4(a) Revenue by Product and Geographical Location](index=10&type=section&id=4(a)%20Revenue%20by%20Product%20and%20Geographical%20Location) Revenue primarily comes from glass product sales, with Mainland China and Hong Kong as the largest market, while Nigeria, the Middle East, and Kazakhstan showed significant growth Revenue by Major Product or Service Line (For the six months ended June 30) | Product or Service Line | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Sales of glass products | 1,989,647 | 2,501,835 | | Revenue from service contracts | 109,571 | 150,271 | | Sales of other products | 54,272 | 31,390 | Revenue by Customer Geographical Location (For the six months ended June 30) | Geographical Location | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Mainland China and Hong Kong | 1,292,586 | 1,921,999 | | Nigeria | 220,626 | 163,219 | | Middle East | 161,243 | 145,902 | | Kazakhstan | 95,863 | 64,775 | | Other countries | 383,172 | 387,601 | [4(b) Segment Results](index=11&type=section&id=4(b)%20Segment%20Results) Segment performance is assessed by gross profit or loss; for H1 2025, colorless glass gross loss widened, colored glass gross profit significantly decreased, and gross profit for coated and energy-saving glass products also declined - Segment performance is measured by gross profit or loss, with other operating expenses, assets, and liabilities not measured by segment[24](index=24&type=chunk) Reportable Segment Gross (Loss)/Profit (For the six months ended June 30) | Segment | 2025 (RMB'000) | 2024 (RMB'000) | Change | | :--- | :--- | :--- | :--- | | Colorless glass products | (35,458) | (11,315) | Loss widened | | Colored glass products | 10,339 | 67,548 | -84.7% | | Coated glass products | 135,906 | 129,602 | +4.9% | | Energy-saving and new energy glass products | 17,421 | 42,779 | -59.3% | | Design and installation related services | 34,541 | 41,739 | -17.3% | | **Total** | **162,749** | **270,353** | **-39.8%** | [5. Other Income](index=12&type=section&id=5.%20Other%20Income) Other income significantly increased by 97% to RMB142,367 thousand, primarily due to a substantial gain from the disposal of property, plant, and equipment, offsetting declines in other income streams Other Income Details (For the six months ended June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | Change | | :--- | :--- | :--- | :--- | | Government grants | 10,399 | 23,475 | -55.7% | | Interest income | 16,372 | 19,635 | -16.6% | | Net gain from sales of raw materials and scrap | 11,043 | 21,313 | -48.2% | | Net gain/(loss) on disposal of property, plant and equipment | 102,730 | (2,019) | Turned from loss to gain | | Others | 1,823 | 9,714 | -81.2% | | **Total** | **142,367** | **72,118** | **+97.4%** | - The net gain from disposal of property, plant and equipment primarily resulted from the sale of assets of a subsidiary for **RMB297,551 thousand**, which were classified as assets held for sale as of December 31, 2024[26](index=26&type=chunk) [6. Loss Before Tax](index=12&type=section&id=6.%20Loss%20Before%20Tax) Loss before tax widened to RMB290,442 thousand, primarily due to finance costs and net foreign exchange losses, as finance costs slightly increased and foreign exchange shifted from gain to loss Loss Before Tax Key Data (For the six months ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | Change | | :--- | :--- | :--- | :--- | | Operating (Loss)/Profit | (58,008) | 78,064 | Turned from profit to loss | | Finance Costs | (231,089) | (229,773) | +0.6% | | Share of Profits less Losses of Joint Ventures | (1,345) | 1,837 | Turned from profit to loss | | **Loss Before Tax** | **(290,442)** | **(149,872)** | **+93.8%** | [6(a) Finance Costs](index=12&type=section&id=6(a)%20Finance%20Costs) Net finance costs were RMB215,403 thousand, a slight decrease, with reduced interest on borrowings offset by increased bank fees, and foreign exchange shifted from gain to loss, leading to a slight increase in total finance costs Finance Costs Details (For the six months ended June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | Change | | :--- | :--- | :--- | :--- | | Interest on bank loans and other borrowings | 182,880 | 203,682 | -10.2% | | Interest on lease liabilities | 2,338 | 2,699 | -13.3% | | Bank charges and other finance costs | 47,324 | 33,552 | +41.0% | | Total borrowing costs | 232,542 | 239,933 | -3.1% | | Less: Amount capitalised | (17,139) | (5,574) | +207.5% | | Net borrowing costs | 215,403 | 234,359 | -8.1% | | Net foreign exchange loss/(gain) | 15,686 | (4,586) | Turned from gain to loss | | **Total Finance Costs** | **231,089** | **229,773** | **+0.6%** | - Borrowing costs were capitalised at an annual interest rate of **5.35%** (2024: 5.87%)[27](index=27&type=chunk) [6(b) Other Items](index=13&type=section&id=6(b)%20Other%20Items) Cost of inventories, depreciation and amortization, and R&D costs were components of loss before tax; cost of inventories significantly decreased, while depreciation and amortization and R&D costs slightly increased Other Items Details (For the six months ended June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | Change | | :--- | :--- | :--- | :--- | | Cost of inventories | 1,917,425 | 2,413,143 | -20.6% | | Depreciation and amortisation expenses: | | | | | - Property, plant and equipment | 331,142 | 302,824 | +9.4% | | - Investment properties | 1,424 | 1,383 | +3.0% | | - Right-of-use assets | 13,058 | 13,715 | -4.8% | | - Intangible assets | 8,778 | 9,221 | -4.8% | | Impairment loss on property, plant and equipment | – | 12,864 | -100% | | Research and development costs (excluding capitalised costs and related amortisation) | 14,685 | 11,621 | +26.4% | [7. Income Tax](index=13&type=section&id=7.%20Income%20Tax) The Group recorded an income tax expense of RMB28,301 thousand, compared to a credit in the prior year, primarily due to gains from asset disposals, with varying corporate income tax rates and preferential rates for high-tech subsidiaries Income Tax Details (For the six months ended June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | Change | | :--- | :--- | :--- | :--- | | Current tax: | | | | | - Mainland China | 25,889 | 9,200 | +181.4% | | - Overseas | 3,754 | 4,920 | -23.7% | | Deferred tax | (1,342) | (27,104) | -95.1% | | **Total Income Tax** | **28,301** | **(12,984)** | **Turned from credit to expense** | - The income tax expense is primarily due to the gain arising from the disposal of property, plant and equipment[85](index=85&type=chunk) - Mainland China subsidiaries are subject to a 25% corporate income tax rate, with some high-tech enterprises enjoying a **15% preferential tax rate** and **100% additional tax deduction** for R&D costs[31](index=31&type=chunk) - Hong Kong subsidiaries are subject to a 16.5% profits tax, Nigerian subsidiaries to a 30% corporate income tax (with partial exemption), Kazakhstan subsidiaries are exempt from corporate income tax until 2025, and Italian subsidiaries are subject to a 27.9% corporate income tax[30](index=30&type=chunk)[32](index=32&type=chunk) [8. Loss Per Share](index=14&type=section&id=8.%20Loss%20Per%20Share) Basic loss per share significantly increased to RMB0.15 from RMB0.07 in the prior year, with diluted loss per share being identical due to the absence of potential dilutive shares Loss Per Share (For the six months ended June 30) | Indicator | 2025 (RMB) | 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Basic Loss Per Share | (0.15) | (0.07) | +114% | | Diluted Loss Per Share | (0.15) | (0.07) | +114% | - Basic loss per share is calculated based on the loss attributable to equity holders of the Company of **RMB258,451 thousand** and the weighted average of **1,684,218 thousand** ordinary shares outstanding[33](index=33&type=chunk) - Diluted loss per share is the same as basic loss per share due to the absence of potential dilutive shares[34](index=34&type=chunk) [8(a) Basic Loss Per Share](index=14&type=section&id=8(a)%20Basic%20Loss%20Per%20Share) Basic loss per share was RMB0.15, calculated based on the loss attributable to equity holders of RMB258,451 thousand and 1,684,218 thousand weighted average ordinary shares outstanding - Basic loss per share was **RMB0.15**, calculated based on the loss attributable to equity holders of the Company of **RMB258,451 thousand** and the weighted average of **1,684,218 thousand** ordinary shares outstanding[33](index=33&type=chunk) [8(b) Diluted Loss Per Share](index=14&type=section&id=8(b)%20Diluted%20Loss%20Per%20Share) Diluted loss per share was the same as basic loss per share for H1 2025, due to the absence of outstanding potential dilutive shares - For the six months ended June 30, 2025, diluted loss per share was the same as basic loss per share due to the absence of outstanding potential dilutive shares[34](index=34&type=chunk) [9. Trade and Bills Receivables](index=15&type=section&id=9.%20Trade%20and%20Bills%20Receivables) Total trade and bills receivables increased by 16.5% to RMB389,700 thousand, driven by a significant rise in third-party receivables, with increased loss allowance and a notable increase in receivables aged over six months but less than one year Trade and Bills Receivables Details (As of June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | Change | | :--- | :--- | :--- | :--- | | Trade receivables from third parties | 523,160 | 430,374 | +21.6% | | Amounts due from Kaisheng Group and its associates | 594 | 1,371 | -56.7% | | Less: Loss allowance | (160,390) | (139,636) | +14.9% | | Financial assets measured at amortised cost | 363,364 | 292,109 | +24.4% | | Bills receivables | 26,336 | 42,287 | -37.8% | | **Total** | **389,700** | **334,396** | **+16.5%** | Ageing Analysis of Trade and Bills Receivables (As of June 30) | Ageing | 2025 (RMB'000) | 2024 (RMB'000) | Change | | :--- | :--- | :--- | :--- | | Within 1 month | 144,660 | 151,871 | -4.7% | | Over 1 month but within 3 months | 114,278 | 97,562 | +17.1% | | Over 3 months but within 6 months | 54,275 | 60,161 | -9.7% | | Over 6 months but within 1 year | 61,229 | 6,768 | +804.7% | | Over 1 year | 15,258 | 18,034 | -15.4% | [10. Other Receivables](index=16&type=section&id=10.%20Other%20Receivables) Total other receivables slightly decreased to RMB454,279 thousand, with amounts due from related parties remaining stable, while deposits and other receivables slightly increased, and loss allowance also increased Other Receivables Details (As of June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | Change | | :--- | :--- | :--- | :--- | | Amounts due from related parties | 115,408 | 115,408 | 0% | | Deposits and other receivables (net of loss allowance) | 154,252 | 156,896 | -1.7% | | VAT recoverable/deductible | 184,619 | 184,989 | -0.2% | | **Total** | **454,279** | **457,293** | **-0.7%** | - Amounts due from related parties are unsecured, interest-free, and have no fixed repayment terms[38](index=38&type=chunk) [11. Trade and Bills Payables](index=17&type=section&id=11.%20Trade%20and%20Bills%20Payables) Total trade and bills payables increased by 13.2% to RMB1,270,823 thousand, with both third-party trade payables and bills payables increasing, and most payables due within one month or on demand Trade and Bills Payables Details (As of June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | Change | | :--- | :--- | :--- | :--- | | Trade payables to third parties | 808,517 | 716,531 | +12.8% | | Amounts due to Kaisheng Group and its associates | 222,810 | 214,172 | +4.0% | | Bills payables | 239,496 | 191,458 | +25.1% | | **Total** | **1,270,823** | **1,122,161** | **+13.2%** | Ageing Analysis of Trade and Bills Payables (As of June 30) | Ageing | 2025 (RMB'000) | 2024 (RMB'000) | Change | | :--- | :--- | :--- | :--- | | Within 1 month or on demand | 1,073,831 | 955,897 | +12.3% | | After 1 month but within 6 months | 184,146 | 166,264 | +10.8% | | After 6 months but within 1 year | 12,846 | – | N/A | [12. Accruals and Other Payables](index=18&type=section&id=12.%20Accruals%20and%20Other%20Payables) Total accruals and other payables slightly decreased to RMB1,623,874 thousand, with amounts due to related parties remaining stable, while payables related to construction and asset acquisition decreased Accruals and Other Payables Details (As of June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | Change | | :--- | :--- | :--- | :--- | | Amounts due to related parties | 1,087,611 | 1,082,204 | +0.5% | | Accruals and other payables (financial liabilities measured at amortised cost) | 1,574,758 | 1,625,860 | -3.1% | | Various taxes payable | 48,628 | 60,490 | -19.6% | | Provision for legal claims | 488 | 1,506 | -67.6% | | **Total** | **1,623,874** | **1,687,856** | **-3.8%** | - Amounts due to related parties are unsecured, interest-free, and have no fixed repayment terms[40](index=40&type=chunk) [13. Share Capital, Reserves and Dividends](index=19&type=section&id=13.%20Share%20Capital%2C%20Reserves%20and%20Dividends) The Board did not recommend an interim dividend for H1 2025, and no share options were granted or exercised, nor were any share awards made to employees under the company's schemes - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[41](index=41&type=chunk) - The Company has a share option scheme and a share award scheme, but no share options were granted or exercised, nor were any share awards made to employees during this period[42](index=42&type=chunk)[44](index=44&type=chunk) [13(a) Dividends](index=19&type=section&id=13(a)%20Dividends) The Board did not recommend an interim dividend for H1 2025, and no final dividend for the previous financial year was approved or paid during this interim period - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[41](index=41&type=chunk) - No final dividend for the previous financial year was approved and paid during this interim period[41](index=41&type=chunk) [13(b) Equity-settled Share-based Payment Transactions](index=19&type=section&id=13(b)%20Equity-settled%20Share-based%20Payment%20Transactions) The Company has share option and share award schemes to incentivize employees, but for H1 2025, no share options were granted or exercised, nor were any ordinary shares purchased or awarded - The Company has a share option scheme (approved in 2016) and a share award scheme (adopted in 2011) to incentivize and retain employees[42](index=42&type=chunk)[43](index=43&type=chunk) - For the six months ended June 30, 2025, no share options were granted or exercised under either scheme, nor were any ordinary shares purchased or awarded to employees[42](index=42&type=chunk)[44](index=44&type=chunk) [14. Contingent Liabilities](index=20&type=section&id=14.%20Contingent%20Liabilities) The Group faces two main contingent liabilities: an uncertain fine against Orda Glass Ltd LLP for pollutant emissions, and potential unquantifiable penalty interest from post-period loan defaults and cross-defaults - The Kazakhstan subsidiary, Orda Glass Ltd LLP, was fined for exceeding pollutant emission limits, which was later revoked on appeal, but the final outcome remains uncertain, and no provision has been made[45](index=45&type=chunk) - Post-period loan defaults triggered cross-default clauses, which may result in penalty interest, but the amount of penalty interest cannot be reliably estimated at present[46](index=46&type=chunk) [15. Non-adjusting Events After the Reporting Period](index=21&type=section&id=15.%20Non-adjusting%20Events%20After%20the%20Reporting%20Period) Post-period, the Group defaulted on RMB1,295,854 thousand in borrowings, triggering cross-default clauses on an additional RMB6,711,453 thousand, making them immediately repayable, though non-current borrowings were not reclassified - Subsequent to the reporting period, the Group defaulted on **RMB1,295,854 thousand** in borrowings, including a syndicated loan of **RMB1,022,699 thousand** and other bank borrowings of **RMB273,155 thousand**[47](index=47&type=chunk) - These defaults triggered cross-default clauses on approximately **RMB6,711,453 thousand** of other outstanding borrowings, making them immediately repayable[47](index=47&type=chunk) - This interim financial report did not reclassify non-current borrowings to current liabilities due to the triggered cross-default clauses[47](index=47&type=chunk) [Management Discussion and Analysis](index=22&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the market, business operations, and financial performance for H1 2025, along with the outlook and strategic plans for H2 2025 [Market Review](index=22&type=section&id=Market%20Review) In H1 2025, global economic downturn and tightening international trade impacted the market, with weak domestic real estate and oversupply in architectural glass, while the photovoltaic industry faced imbalance, though concentrated solar power developed steadily - In H1 2025, the global economy faced downward pressure, and the international trade environment tightened[48](index=48&type=chunk) - The domestic real estate sector showed weak recovery, leading to oversupply and price pressure in the architectural glass market[49](index=49&type=chunk) - The photovoltaic industry experienced supply-demand imbalance and shrinking profit margins, while the concentrated solar power sector maintained steady development[49](index=49&type=chunk) [Business Review](index=23&type=section&id=Business%20Review) The Group operates 11 float glass production lines, with H1 2025 seeing decreased production, sales, and a 20% drop in average selling price; the company is implementing 'three major campaigns' (cash flow improvement, cost reduction, loss control), optimizing product structure, expanding overseas, and achieving significant technological innovations - The Group operates 15 float glass production lines (11 in operation), with products applied in construction, automotive, and solar energy sectors[50](index=50&type=chunk) - In H1 2025, glass production decreased by approximately **8%**, sales decreased by approximately **1%**, and the comprehensive average selling price fell by approximately **20%**[52](index=52&type=chunk) - The Company is advancing "three major campaigns" (cash flow improvement, cost reduction, loss control) through energy management, lean production, product structure optimization, asset operation enhancement, and organizational efficiency improvement to reduce costs and enhance efficiency[55](index=55&type=chunk)[56](index=56&type=chunk)[57](index=57&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk) - Overseas subsidiaries (Nigeria, Kazakhstan, Italy) maintained good operating performance, and the Egypt project is progressing in an orderly manner[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk) - Significant achievements in technological innovation include the mass production of new Low-E glass, with some products selected as industry demonstration cases[64](index=64&type=chunk) [Overview](index=23&type=section&id=Overview) The Group operates 11 float glass production lines, producing various glass types for construction, automotive, and solar applications, and is actively pursuing a 'going global' strategy with operations in Nigeria, Kazakhstan, Italy, and an ongoing project in Egypt - The Group owns 15 float glass production lines with a daily melting capacity of **8,200 tons**, of which 11 are in operation, with products applied in construction, automotive, and solar energy sectors[50](index=50&type=chunk) - Additionally, the Group has 2 photovoltaic rolled glass lines, 3 offline Low-E coated glass lines, 5 solar mirror lines, and a professional glass equipment and technology service provider[50](index=50&type=chunk) - The Company is actively implementing a "going global" strategy, with operations established in Nigeria, Kazakhstan, and Italy, and the construction of a float glass production line in Egypt is underway[51](index=51&type=chunk) [Production, Sales and Selling Price](index=23&type=section&id=Production%2C%20Sales%20and%20Selling%20Price) In H1 2025, glass production decreased by approximately 8% to 28 million weight cases, sales decreased by 1% to 25 million weight cases, and the average selling price fell by 20% to RMB80 per weight case - In H1 2025, glass production was approximately **28 million weight cases**, a year-on-year decrease of approximately **8%**[52](index=52&type=chunk) - Sales volume was approximately **25 million weight cases**, a year-on-year decrease of approximately **1%**[52](index=52&type=chunk) - The comprehensive average selling price was **RMB80 per weight case**, a year-on-year decrease of approximately **20%**[52](index=52&type=chunk) [Raw Material, Fuel Prices and Manufacturing Costs](index=23&type=section&id=Raw%20Material%2C%20Fuel%20Prices%20and%20Manufacturing%20Costs) In H1 2025, soda ash prices declined due to loose supply, mineral raw material prices fluctuated, and fuel costs varied, with natural gas prices falling and petroleum coke prices trending upwards - In H1 2025, the soda ash market saw loose supply and falling prices[53](index=53&type=chunk) - Mineral raw material prices fluctuated at low levels, with some increasing due to rising transportation costs[53](index=53&type=chunk) - Domestic natural gas prices continued to decline, while petroleum coke market prices fluctuated upwards within a range[54](index=54&type=chunk) [Key Initiatives in H1 2025](index=24&type=section&id=Key%20Initiatives%20in%20H1%202025) In H1 2025, the Company focused on 'coordinated efforts, overseas expansion, technological innovation, performance culture, compliance management, and brand building,' prioritizing 'three major campaigns' (cash flow improvement, cost reduction, loss control), achieving good overseas operations, significant technological innovations, and strengthening corporate governance - The Company's work in H1 focused on six key areas: coordinated efforts, overseas expansion, technological innovation, performance culture, compliance management, and brand building[55](index=55&type=chunk) - The "three major campaigns" (cash flow improvement, cost reduction, and loss control) were advanced through energy management, lean production, product structure optimization, asset operation enhancement, and organizational efficiency improvement to achieve cost reduction, efficiency gains, and enhanced cash flow resilience[55](index=55&type=chunk)[56](index=56&type=chunk)[57](index=57&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk) - Overseas subsidiaries (Nigeria, Kazakhstan, Italy) maintained good operating performance, and the Egypt project is progressing in an orderly manner[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk) - Significant achievements in technological innovation include the mass production of new Low-E glass, with some products selected as industry demonstration cases[64](index=64&type=chunk) - Performance assessment mechanisms were strengthened, cultural development was enhanced, compliance management was comprehensively improved, and brand and market recognition were boosted through ESG ratings[65](index=65&type=chunk)[66](index=66&type=chunk) [Coordinated Advancement of “Three Major Campaigns”](index=24&type=section&id=Coordinated%20Advancement%20of%20%E2%80%9CThree%20Major%20Campaigns%E2%80%9D) The Company focuses on 'cash flow improvement, cost reduction, and loss control' through market-based negotiation, technological transformation, lean production, product structure optimization, asset disposal, and optimized capital allocation, aiming for comprehensive enhancement of efficiency - The Company focused on "cash flow improvement, cost reduction, and loss control" as core initiatives, uniformly implementing measures to reduce costs and expenses[55](index=55&type=chunk) - Through energy management, lean production, product structure optimization, asset operation enhancement, and organizational efficiency improvement, the Company aims to achieve cost reduction, efficiency gains, and enhanced cash flow resilience[55](index=55&type=chunk)[56](index=56&type=chunk)[57](index=57&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk) [Good Operating Performance of Overseas Subsidiaries](index=25&type=section&id=Good%20Operating%20Performance%20of%20Overseas%20Subsidiaries) Overseas subsidiaries maintained good operating performance, with Nigeria Company's net profit significantly increasing, Kazakhstan Company's production and sales ratio improving, Italy Company's photovoltaic business growing strongly, and the Egypt project progressing - Nigeria Company's net profit significantly increased, with a leading comprehensive gross profit margin in the industry, and is advancing waste heat power generation and petroleum coke substitution projects to reduce costs[60](index=60&type=chunk) - Kazakhstan Company's production and sales ratio steadily improved, strengthening compliance management, optimizing product structure to focus on high-value-added products, and reforming its distribution system[61](index=61&type=chunk) - Italy Company's photovoltaic business experienced strong growth, with traditional advantageous businesses contributing steadily, achieving continuous and stable profitability[62](index=62&type=chunk) - The Egypt project construction is progressing in an orderly manner and is ready for main engineering construction[63](index=63&type=chunk) [Significant Achievements in Technological Innovation](index=26&type=section&id=Significant%20Achievements%20in%20Technological%20Innovation) The Company achieved continuous breakthroughs in technological innovation, with new low-resistance home appliance Low-E glass and triple-silver high-performance Low-E glass achieving industrial mass production, and 'China Glass Blue' Low-E energy-saving glass selected as an industry demonstration case - New low-resistance home appliance Low-E glass and triple-silver high-performance Low-E glass have achieved industrial mass production, with key indicators meeting or exceeding industry standards[64](index=64&type=chunk) - "China Glass Blue" high-performance, long-life Low-E energy-saving glass, based on spectral selective coating technology, was selected as a demonstration case for "increasing varieties, improving quality, and creating brands" by the industry association[64](index=64&type=chunk) [Performance Assessment and Cultural Development](index=27&type=section&id=Performance%20Assessment%20and%20Cultural%20Development) The Company continuously improved its performance assessment mechanism, establishing a 'monthly tracking + dynamic adjustment' system, deepening the link between performance and compensation, and fostering employee cohesion and team vitality through cultural activities - The Company continuously improved its performance assessment mechanism, establishing a "monthly tracking + dynamic adjustment" system, achieving full alignment of assessment targets with strategy across all levels, and deepening the link between performance and remuneration[65](index=65&type=chunk) - Through activities such as "Enterprise Craftsman Selection," the 20th-anniversary celebration, and employee sports events, the Company fostered employee cohesion, enhancing team vitality and sense of belonging[65](index=65&type=chunk) [Compliance Management and Brand Building](index=27&type=section&id=Compliance%20Management%20and%20Brand%20Building) The Company comprehensively strengthened compliance management, enhancing legal literacy, standardizing audits, and improving legal risk control; on the brand and market front, it refined capital market monitoring, enhanced brand exposure, and achieved the highest 'A+' ESG rating, significantly boosting market recognition - The Company comprehensively strengthened compliance management, enhancing legal literacy among cadres, standardizing economic responsibility audits, and improving the legal risk prevention and control system[66](index=66&type=chunk) - The Company refined its capital market monitoring system, enhanced brand exposure, and achieved the highest "A+" ESG rating in the building materials industry, significantly boosting market recognition[66](index=66&type=chunk) [Outlook](index=28&type=section&id=Outlook) In H2 2025, global economic growth is expected to slow, with China's real estate and photovoltaic markets adjusting; the flat glass industry will optimize supply-demand and upgrade towards 'low-carbon and intelligent' production, while demand for automotive, energy-saving, and concentrated solar power glass will grow, and raw material prices are expected to decline or stabilize, with the company's H2 plan focusing on debt restructuring, overseas strategy, technological upgrades, and the 'three major campaigns' - In H2 2025, global economic growth is expected to slow further due to US trade barriers, and China's real estate and photovoltaic power generation markets are entering a period of deep adjustment[67](index=67&type=chunk) - The flat glass industry will continue to optimize its supply-demand structure, eliminate outdated capacity, and strategically upgrade towards "low-carbon and intelligent" production[67](index=67&type=chunk) - Market demand for automotive glass, energy-saving architectural glass, and conductive glass in niche segments will continue its boom cycle, while the rapid development of concentrated solar power will lead to significant growth in the high-performance concentrated solar power glass market[68](index=68&type=chunk)[69](index=69&type=chunk) - Soda ash and various mineral raw material markets are expected to enter a weak phase, with prices continuing to decline or remain stable with slight decreases; natural gas prices are expected to maintain mid-year levels, and petroleum coke prices are trending downwards[70](index=70&type=chunk)[71](index=71&type=chunk) [Market Prospects](index=28&type=section&id=Market%20Prospects) In H2 2025, global economic growth is expected to slow, with China's real estate and photovoltaic markets adjusting; the flat glass industry will optimize supply-demand and upgrade towards 'low-carbon and intelligent' production, while demand for automotive, energy-saving, and concentrated solar power glass will grow - Global economic growth is expected to slow further due to US trade barriers, and China's real estate and photovoltaic power generation markets are entering a period of deep adjustment[67](index=67&type=chunk) - The flat glass industry will continue to optimize its supply-demand structure, eliminate outdated capacity, and strategically upgrade towards "low-carbon and intelligent" production[67](index=67&type=chunk) - Market demand for automotive glass, energy-saving architectural glass, and conductive glass in niche segments will continue its boom cycle[68](index=68&type=chunk) - The rapid development of concentrated solar power will lead to significant growth in the high-performance concentrated solar power glass market[69](index=69&type=chunk) [Raw Material, Fuel Prices and Manufacturing Cost Forecast](index=28&type=section&id=Raw%20Material%2C%20Fuel%20Prices%20and%20Manufacturing%20Cost%20Forecast) In H2 2025, soda ash and mineral raw material markets are expected to weaken, with prices declining or stabilizing; fuel market fluctuations will be limited, with natural gas prices maintaining mid-year levels and petroleum coke prices trending downwards - Soda ash and various mineral raw material markets are expected to enter a weak phase, with prices continuing to decline or remain stable with slight decreases[70](index=70&type=chunk) - The natural gas market is trending towards looser supply, with prices expected to maintain mid-year fluctuation levels[71](index=71&type=chunk) - The petroleum coke market is seeing increased supply and weak demand, with prices expected to trend downwards[71](index=71&type=chunk) [Work Plan for H2 2025](index=29&type=section&id=Work%20Plan%20for%20H2%202025) The Company's H2 work plan focuses on four areas: coordinating debt restructuring, deepening the 'going global' strategy, driving product structure transformation through technological upgrades, and continuing the 'three major campaigns' to optimize resource allocation - The Company's H2 work plan focuses on four aspects: coordinating the debt restructuring plan to ensure debt repayment and going concern, resolutely deepening the "going global" development strategy to enhance overseas subsidiaries' performance contribution, driving product structure transformation through technological upgrades to improve domestic base operating performance, and continuously advancing the "three major campaigns" to optimize the resource allocation system[72](index=72&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk) [Advancing Debt Restructuring Plan](index=29&type=section&id=Advancing%20Debt%20Restructuring%20Plan) Facing the risk of large debts not being repaid on time, the Company is actively seeking professional advice and negotiating with stakeholders to explore solutions for resolving, extending, or restructuring borrowings, while also developing contingency plans to ensure debt repayment and going concern - The Company is actively seeking professional advice, negotiating with financial advisors and potential financiers to raise funds, and exploring various solutions to resolve, extend, or restructure borrowings[72](index=72&type=chunk) - Contingency plans are being developed, including cost reduction, efficiency improvement, production line transformation, and product structure adjustment, to ensure debt repayment capability and going concern[72](index=72&type=chunk) [Deepening the “Going Global” Development Strategy](index=29&type=section&id=Deepening%20the%20%E2%80%9CGoin%20Global%E2%80%9D%20Development%20Strategy) Overseas production bases will enhance production-sales synergy through high-value-added product transformation, optimized warehousing, multi-level customer systems, and strengthened cost control, while leveraging the Italy Company's technology platform to expand into new energy glass and flat glass engineering, and orderly advancing the Egypt project - Overseas production bases will focus on safe operations, systematically enhancing production-sales synergy through high-value-added product transformation, optimized warehousing networks, multi-level customer systems, and strengthened cost control[73](index=73&type=chunk) - Leveraging the Italy Company's technology platform, the Company will expand into new energy glass and flat glass engineering, and orderly advance the Egypt project[73](index=73&type=chunk) [Technology Upgrades Driving Product Structure Transformation](index=30&type=section&id=Technology%20Upgrades%20Driving%20Product%20Structure%20Transformation) The Company will continuously improve its production technology system, focusing on glass products for new energy and home appliance cold chain applications, advancing the technical development of multi-functional ultra-clear float glass and high-quality automotive glass, and orderly completing the technological upgrade of concentrated solar power glass production lines, promoting product structure adjustment towards differentiation and high-end - The Company will continuously improve its production technology system, focusing on glass products for new energy, home appliance cold chain, and other application areas[74](index=74&type=chunk) - Technical development of multi-functional ultra-clear float glass and high-quality automotive glass will be advanced, and technological upgrades of concentrated solar power glass production lines will be completed in an orderly manner, promoting product structure adjustment towards differentiation and high-end[74](index=74&type=chunk) [Continued Advancement of “Three Major Campaigns”](index=30&type=section&id=Continued%20Advancement%20of%20%E2%80%9CThree%20Major%20Campaigns%E2%80%9D) The Company will further enhance asset operating efficiency through systematic asset revitalization; implement cost reduction and efficiency improvement measures based on a refined management system, building a full-process control mechanism; strengthen company-wide cost awareness, and establish a dynamic allocation mechanism that prioritizes resources towards core business areas - Through systematic asset revitalization, the Company will further enhance asset operating efficiency[75](index=75&type=chunk) - Cost reduction and efficiency improvement measures will be implemented based on a refined management system, building a full-process control mechanism; company-wide cost awareness will be strengthened, and a dynamic allocation mechanism that prioritizes resources towards core business areas will be established, achieving efficient synergy and value maximization of resource elements[75](index=75&type=chunk) [Financial Review](index=30&type=section&id=Financial%20Review) In H1 2025, revenue decreased by 20%, gross profit by 40%, and period loss significantly increased by 133% to RMB318,743 thousand, driven by declining sales, average selling prices, and macro-economic uncertainties; current and non-current assets and liabilities all decreased, with a liquidity ratio of 0.31, debt-to-asset ratio of 0.95, and expanded net current liabilities, further impacted by significant post-period loan defaults and cross-defaults - In H1 2025, revenue was **RMB2,153,490 thousand**, a year-on-year decrease of approximately **20%**, primarily due to the combined effect of reduced sales volume and average selling price[76](index=76&type=chunk) - The loss for the period was **RMB318,743 thousand**, a significant increase of **133%** from the prior year's loss of RMB136,888 thousand, primarily due to the downturn in China's real estate sector, supply-demand mismatch in the photovoltaic industry, and macro-economic uncertainties[86](index=86&type=chunk) - Current assets decreased by **14%**, non-current assets by **2%**, current liabilities by **1%**, and non-current liabilities by **12%**[87](index=87&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk) - The current ratio was **0.31**, the debt-to-asset ratio was **0.95**, and net current liabilities expanded to **RMB7,179,129 thousand**[93](index=93&type=chunk) - Subsequent to the reporting period, loan defaults of **RMB1,295,854 thousand** occurred, triggering cross-default clauses on approximately **RMB6,711,453 thousand** of other borrowings[92](index=92&type=chunk)[97](index=97&type=chunk) [Revenue](index=30&type=section&id=Revenue) In H1 2025, main business revenue decreased by 20% to RMB2,153,490 thousand, primarily due to reduced sales volume and average selling price; colorless and energy-saving glass revenue significantly declined, while colored and coated glass sales increased, and overseas glass product sales rose by 14% - In H1 2025, main business revenue was **RMB2,153,490 thousand**, a year-on-year decrease of **20%**, primarily due to reduced sales volume and average selling price[76](index=76&type=chunk) Revenue by Product Segment (For the six months ended June 30) | Product Segment | 2025 (RMB'000) | % of Total | 2024 (RMB'000) | % of Total | Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Colorless glass | 732,652 | 34% | 1,153,320 | 43% | (36%) | | Colored glass | 405,459 | 19% | 374,406 | 14% | 8% | | Coated glass | 434,206 | 20% | 430,096 | 16% | 1% | | Energy-saving and new energy glass | 417,330 | 19% | 544,013 | 20% | (23%) | | Design and installation related services | 163,843 | 8% | 181,661 | 7% | (10%) | | **Total** | **2,153,490** | **100%** | **2,683,496** | **100%** | **(20%)** | - Revenue from colorless glass and energy-saving and new energy glass decreased by **36%** and **23%** respectively, primarily due to reduced sales volume and average selling price[78](index=78&type=chunk) - Sales volume of colored glass and coated glass increased by **46%** and **17%** respectively, and overseas glass product sales increased by **14%**[79](index=79&type=chunk) - The average selling price of glass products decreased by approximately **20%**, mainly due to declining prices in the domestic market, although the average selling price overseas increased[80](index=80&type=chunk) [Cost of Sales](index=32&type=section&id=Cost%20of%20Sales) Cost of sales decreased by 18% to RMB1,990,741 thousand in H1 2025, primarily due to a reduction in the unit cost of glass products sold - In H1 2025, cost of sales was **RMB1,990,741 thousand**, a year-on-year decrease of **18%**, primarily due to a reduction in the unit cost of glass products sold[81](index=81&type=chunk) [Gross Profit](index=32&type=section&id=Gross%20Profit) Gross profit decreased by 40% to RMB162,749 thousand in H1 2025, primarily due to a decline in the average selling price of glass products in Mainland China - In H1 2025, gross profit was **RMB162,749 thousand**, a year-on-year decrease of **40%**, primarily due to a decline in the average selling price of glass products in Mainland China[82](index=82&type=chunk) [Administrative Expenses](index=32&type=section&id=Administrative%20Expenses) Administrative expenses slightly decreased to RMB177,038 thousand in H1 2025 compared to the prior year - In H1 2025, administrative expenses were **RMB177,038 thousand**, a slight decrease compared to the prior year[83](index=83&type=chunk) [Finance Costs](index=32&type=section&id=Finance%20Costs) Finance costs slightly increased by approximately 1% to RMB231,089 thousand in H1 2025 compared to the prior year - In H1 2025, finance costs were **RMB231,089 thousand**, a slight increase of approximately **1%** compared to the prior year[84](index=84&type=chunk) [Income Tax](index=32&type=section&id=Income%20Tax) Income tax expense was RMB28,301 thousand in H1 2025, compared to an income tax credit in the prior year, primarily due to the consideration from the disposal of property, plant, and equipment - In H1 2025, income tax expense was **RMB28,301 thousand**, compared to an income tax credit of **RMB12,984 thousand** in the prior year[85](index=85&type=chunk) - The income tax expense is primarily due to the consideration arising from the disposal of property, plant and equipment and right-of-use assets[85](index=85&type=chunk) [Loss for the Period](index=33&type=section&id=Loss%20for%20the%20Period) The Group recorded a loss of RMB318,743 thousand in H1 2025, a significant increase of 133% from the prior year, primarily due to the downturn in China's real estate sector, supply-demand mismatch in the photovoltaic industry, and macro-economic uncertainties - In H1 2025, the Group recorded a loss of **RMB318,743 thousand**, a significant increase of **133%** from the prior year's loss of RMB136,888 thousand[86](index=86&type=chunk) - The increased loss is primarily due to the downturn in China's real estate sector, supply-demand mismatch in the photovoltaic industry, and macro-economic uncertainties[86](index=86&type=chunk) [Current Assets](index=33&type=section&id=Current%20Assets) Current assets decreased by 14% to RMB3,234,569 thousand as of June 30, 2025, primarily due to reductions in cash, assets held for sale, and inventories - Current assets decreased by **14%** to **RMB3,234,569 thousand**, primarily due to reductions in cash, assets held for sale, and inventories[87](index=87&type=chunk) [Non-current Assets](index=33&type=section&id=Non-current%20Assets) Non-current assets decreased by 2% to RMB10,241,865 thousand as of June 30, 2025, primarily due to a reduction in property, plant, and equipment - Non-current assets decreased by **2%** to **RMB10,241,865 thousand**, primarily due to a reduction in property, plant and equipment[88](index=88&type=chunk) [Current Liabilities](index=33&type=section&id=Current%20Liabilities) Current liabilities slightly decreased by 1% to RMB10,413,698 thousand as of June 30, 2025, primarily due to a reduction in short-term bank and other borrowings - Current liabilities slightly decreased by **1%** to **RMB10,413,698 thousand**, primarily due to a reduction in short-term bank loans and other borrowings[89](index=89&type=chunk) [Non-current Liabilities](index=33&type=section&id=Non-current%20Liabilities) Non-current liabilities decreased by 12% to RMB2,437,671 thousand as of June 30, 2025, primarily due to a reduction in long-term bank and other borrowings - Non-current liabilities decreased by **12%** to **RMB2,437,671 thousand**, primarily due to a reduction in long-term bank loans and other borrowings[90](index=90&type=chunk) [Capital Structure, Liquidity, Financial Resources and Gearing Ratio](index=34&type=section&id=Capital%20Structure%2C%20Liquidity%2C%20Financial%20Resources%20and%20Gearing%20Ratio) As of June 30, 2025, the Group had cash of RMB1,017,474 thousand and outstanding borrowings of RMB9,321,088 thousand, with a debt-to-equity ratio of 0.7, current ratio of 0.31, and debt-to-asset ratio of 0.95; net current liabilities expanded to RMB7,179,129 thousand, and post-period cross-default clauses were triggered on RMB1,760,409 thousand of borrowings - As of June 30, 2025, cash and bank balances were **RMB1,017,474 thousand**, with **70%** denominated in RMB[91](index=91&type=chunk) - Outstanding bank loans and other borrowings amounted to **RMB9,321,088 thousand**, of which **76%** are due within one year[92](index=92&type=chunk) - Subsequent to the reporting period, cross-default clauses were triggered on **RMB1,760,409 thousand** of borrowings originally due after one year, making them immediately repayable[92](index=92&type=chunk) Key Financial Ratios (As of June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Debt-to-equity ratio | 0.7 | 0.7 | | Current ratio | 0.31 | 0.36 | | Net current liabilities (RMB'000) | 7,179,129 | 6,800,076 | | Debt-to-asset ratio | 0.95 | 0.94 | [Foreign Exchange Fluctuation Risk and Related Hedging](index=35&type=section&id=Foreign%20Exchange%20Fluctuation%20Risk%20and%20Related%20Hedging) The Group's transactions and monetary assets are primarily denominated in RMB, Naira, Tenge, USD, and Euro; RMB exchange rate fluctuations may impact net assets, profit or loss, and dividends, and no derivative instruments were purchased for hedging in H1 2025 - The Group's transactions and monetary assets are primarily denominated in RMB, Naira, Tenge, USD, and Euro[94](index=94&type=chunk) - Fluctuations in the RMB exchange rate against other currencies may impact the Group's net assets, profit or loss, and dividends[94](index=94&type=chunk) - For the six months ended June 30, 2025, the Group did not purchase any derivative instruments for hedging[94](index=94&type=chunk) [Contingent Liabilities](index=35&type=section&id=Contingent%20Liabilities) Details of contingent liabilities are disclosed in Note 14 to the unaudited interim financial information - Details of contingent liabilities are disclosed in Note 14 to the unaudited interim financial information[95](index=95&type=chunk) [Material Acquisitions and Disposals, Material Investments and Future Plans for Material Investments or Acquisitions of Capital Assets](index=35&type=section&id=Material%20Acquisitions%20and%20Disposals%2C%20Material%20Investments%20and%20Future%20Plans%20for%20Material%20Investments%20or%20Acquisitions%20of%20Capital%20Assets) The Group had no material investments or acquisitions of capital assets, nor any material acquisitions or disposals of subsidiaries and associates in H1 2025 - For the six months ended June 30, 2025, the Group had no material investments or acquisitions of capital assets, nor any material acquisitions or disposals of subsidiaries and associates[96](index=96&type=chunk) [Material Events After the Reporting Period](index=35&type=section&id=Material%20Events%20After%20the%20Reporting%20Period) Details of material events affecting the Group after the reporting period are disclosed in Note 15 to the unaudited interim financial information - Details of material events significantly affecting the Group after the reporting period are disclosed in Note 15 to the unaudited interim financial information[97](index=97&type=chunk) [Other Information](index=36&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section covers human resources, interim dividend policy, share option and award schemes, securities transactions, public float, audit committee review, auditor's report extract, investor relations, and compliance with corporate governance codes [Human Resources and Employee Remuneration](index=36&type=section&id=Human%20Resources%20and%20Employee%20Remuneration) The Group's total employees decreased to approximately 3,908 as of June 30, 2025, primarily due to the phased elimination of less profitable production lines in Mainland China, with the Company ensuring employee rights and competitive remuneration - As of June 30, 2025, the Group had approximately **3,908 employees**, a decrease of approximately **14.8%** compared to December 31, 2024[98](index=98&type=chunk) - The reduction in employee numbers is primarily due to the phased elimination of less profitable production lines in Mainland China, with the Company firmly safeguarding employee rights during the downsizing process[98](index=98&type=chunk) - The Group ensures competitive employee remuneration and rewards employees based on relevant performance benchmarks and market conditions[99](index=99&type=chunk) [Interim Dividend](index=36&type=section&id=Interim%20Dividend) The Board has resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board has resolved not to declare an interim dividend for the six months ended June 30, 2025[100](index=100&type=chunk) [Share Option Scheme](index=36&type=section&id=Share%20Option%20Scheme) The Company adopted a share option scheme in 2016 to incentivize eligible participants, but since its adoption, no share options have been granted, exercised, cancelled, or lapsed - The Company adopted a share option scheme in 2016 to incentivize eligible participants[101](index=101&type=chunk) - Since its adoption date, no share options have been granted, exercised, cancelled, or lapsed under the share option scheme[101](index=101&type=chunk) [Share Award Scheme](index=37&type=section&id=Share%20Award%20Scheme) The Company adopted a share award scheme in 2011 to recognize and retain employees, managed by a trustee, with a total award limit of 10% of issued share capital and 2% for a single employee, extended until December 12, 2031, and no shares were granted or vested to directors and employees in H1 2025 - The Company adopted a share award scheme in 2011 to recognize and retain employees, which is managed by a trust[102](index=102&type=chunk)[104](index=104&type=chunk) - The total nominal value of awarded shares is capped at **10%** of the issued share capital, with a limit of **2%** for any single selected employee[105](index=105&type=chunk) - The share award scheme was extended for 10 years in 2021, expiring on December 12, 2031[107](index=107&type=chunk) - For the six months ended June 30, 2025, no shares were granted or vested to directors and employees under the scheme[107](index=107&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=38&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities in H1 2025 - 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[108](index=108&type=chunk) [Sufficient Public Float](index=38&type=section&id=Sufficient%20Public%20Float) The Company maintained a public float of not less than 25% as required by HKEX Listing Rules for H1 2025 and up to the latest practicable date - The Company has maintained a public float of not less than **25%** as required by the Hong Kong Stock Exchange Listing Rules[109](index=109&type=chunk) [Audit Committee](index=38&type=section&id=Audit%20Committee) The Audit Committee, with management and KPMG, reviewed the Group's accounting principles, operations, risk management, internal controls, and financial reporting, including the unaudited interim results for H1 2025 - The Company's Audit Committee, together with management and external auditor KPMG, reviewed the Group's accounting principles, operations, risk management, internal controls, and financial reporting matters, including the unaudited interim results for the six months ended June 30, 2025[110](index=110&type=chunk) [Extract of Review Report on Interim Financial Report](index=39&type=section&id=Extract%20of%20Review%20Report%20on%20Interim%20Financial%20Report) KPMG noted that the Group's net loss, net current liabilities, and post-period loan defaults and cross-defaults for H1 2025 indicate a material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern, with no modification to the auditor's review conclusion - The auditor noted that the Group's net loss of **RMB318,743 thousand**, net current liabilities of **RMB7,179,129 thousand**, and post-period loan defaults and cross-default events indicate a material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern[111](index=111&type=chunk) - The auditor's review conclusion on this going concern matter was not modified[111](index=111&type=chunk) [Investor Relations and Communication](index=39&type=section&id=Investor%20Relations%20and%20Communication) The Company actively promotes investor relations and communication through regular meetings with institutional investors and financial analysts to ensure two-way communication regarding the Group's performance and development - The Company actively promotes investor relations and communication through regular meetings with institutional investors and financial analysts to ensure two-way communication regarding the Group's performance and development[112](index=112&type=chunk) [Compliance with Corporate Governance Code](index=39&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company applied the principles and complied with the applicable code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules for H1 2025 - For the six months ended June 30, 2025, the Company applied the principles and complied with the applicable code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules[113](index=113&type=chunk) [Compliance with Model Code for Securities Transactions by Directors](index=39&type=section&id=Compliance%20with%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company adopted the Model Code for Securities Transactions by Directors of Listed Issuers as its code of conduct, and all directors confirmed compliance throughout the period - The Company adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules as its code of conduct for directors' securities transactions, and all directors confirmed compliance throughout the period[114](index=114&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=40&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement has been published on the websites

Group 1 - The company reported a revenue of 2.153 billion RMB for the six months ending June 30, 2025, representing a year-on-year decrease of 19.75% [1] - The loss attributable to equity shareholders amounted to 258 million RMB, which is an increase of 117.17% compared to the previous year [1] - The basic loss per share was 0.15 RMB [1]

Group 1 - The company reported a revenue of 2.153 billion RMB for the six months ending June 30, 2025, representing a year-on-year decrease of 19.75% [1] - The loss attributable to equity shareholders amounted to 258 million RMB, which is an increase of 117.17% compared to the previous year [1] - The basic loss per share was 0.15 RMB [1]

[Consolidated Statement of Profit or Loss](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) [Financial Performance Overview](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss-Overview) For the six months ended June 30, 2025, the Group turned from profit to loss, recording an operating loss, a significant expansion in net loss, and an increase in basic loss per share, primarily due to decreased revenue and finance costs | Metric | Six Months Ended June 30, 2025 (thousand RMB) | Six Months Ended June 30, 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Revenue | 2,153,490 | 2,683,496 | -19.75% | | Gross Profit | 162,749 | 270,353 | -39.79% | | Operating (Loss)/Profit | (58,008) | 78,064 | Turned from Profit to Loss | | Loss Before Tax | (290,442) | (149,872) | Increased by 93.79% | | Loss for the Period | (318,743) | (136,888) | Increased by 132.85% | | Loss Attributable to Equity Holders of the Company | (258,451) | (119,006) | Increased by 117.17% | | Basic and Diluted Loss Per Share (RMB) | (0.15) | (0.07) | Increased by 114.29% | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) [Comprehensive Income Overview](index=3&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income-Overview) Total comprehensive income for the period was **RMB (258,961) thousand**, an improvement from **RMB (450,421) thousand** in the prior period, primarily due to the positive impact of exchange differences despite an expanded loss for the period | Metric | Six Months Ended June 30, 2025 (thousand RMB) | Six Months Ended June 30, 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Loss for the Period | (318,743) | (136,888) | Increased by 132.85% | | Exchange Differences | 59,656 | (313,859) | Turned from Negative to Positive | | Total Comprehensive Income for the Period | (258,961) | (450,421) | Improved by 42.49% | | Total Comprehensive Income Attributable to Equity Holders of the Company | (198,677) | (432,559) | Improved by 54.07% | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) [Assets and Liabilities Overview](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position-Overview) As of June 30, 2025, the Group's current and non-current assets both decreased, leading to a decline in total assets; while current liabilities slightly decreased, net current liabilities and net assets both deteriorated, indicating increased liquidity pressure | Metric | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 10,241,865 | 10,462,116 | -2.11% | | Current Assets | 3,234,569 | 3,760,649 | -14.00% | | Current Liabilities | 10,413,698 | 10,560,725 | -1.39% | | Net Current Liabilities | (7,179,129) | (6,800,076) | Deteriorated by 5.57% | | Non-current Liabilities | 2,437,671 | 2,778,014 | -12.25% | | Net Assets | 625,065 | 884,026 | -29.29% | | Total Equity | 625,065 | 884,026 | -29.29% | [Notes to the Unaudited Interim Financial Information](index=6&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Information) [1. Company Information](index=6&type=section&id=1%20Company%20Information) China Glass Holdings Limited is incorporated in Bermuda and listed on the Hong Kong Stock Exchange, primarily engaged in the production, marketing, and distribution of glass and glass products, as well as the design, installation, and technical research and development of glass production lines - The company is incorporated in Bermuda, listed in Hong Kong, and primarily engaged in glass product manufacturing, marketing, distribution, and related technical services[10](index=10&type=chunk) [2. Basis of Preparation and Going Concern Risk](index=6&type=section&id=2%20Basis%20of%20Preparation) The interim financial report is prepared in accordance with HKAS 34 and reviewed by KPMG, revealing significant going concern uncertainties due to net losses, substantial net current liabilities, and multiple loan defaults and cross-defaults requiring immediate repayment of a large amount of borrowings, with management actively pursuing debt restructuring, strategic investors, and major shareholder support to mitigate liquidity pressure - The interim financial report is prepared in accordance with HKAS 34 and reviewed by KPMG[11](index=11&type=chunk)[12](index=12&type=chunk) - The Group's net loss for the six months ended June 30, 2025, was **RMB318,743,000**, with net current liabilities of **RMB7,179,129,000**[13](index=13&type=chunk) - Subsequent to the reporting period, the Group defaulted on **RMB1,295,854,000** in due borrowings and triggered cross-default clauses on approximately **RMB6,711,453,000** of other outstanding borrowings, resulting in a total of **RMB8,007,307,000** in borrowings becoming immediately repayable[13](index=13&type=chunk)[15](index=15&type=chunk) - Management is implementing various measures to alleviate liquidity pressure, including negotiating debt restructuring with lenders, seeking strategic investors, and receiving **RMB1,177,612,000** in financial assistance and **RMB1,253,777,000** in trade and other payables support from the largest shareholder, Kaisheng Technology Group Co Ltd, with no repayment required within the next twelve months[14](index=14&type=chunk)[16](index=16&type=chunk) [3. Changes in Accounting Policies](index=9&type=section&id=3%20Changes%20in%20Accounting%20Policies) The Group has applied amendments to HKAS 21, which had no material impact on the interim report as no foreign currency non-exchangeable transactions occurred, and no other new standards or interpretations not yet effective were adopted during the period - The Group has applied amendments to HKAS 21, but they had no material impact on the interim report[17](index=17&type=chunk) - No new standards or interpretations not yet effective were adopted during this accounting period[18](index=18&type=chunk) [4. Revenue and Segment Reporting](index=9&type=section&id=4%20Revenue%20and%20Segment%20Reporting) The Group manages its business across five reportable segments: clear glass, tinted glass, coated glass, energy-saving and new energy glass products, and design and installation related services; for the six months ended June 30, 2025, total revenue decreased by **19.75%** year-on-year, primarily due to reduced revenue from clear glass and energy-saving and new energy glass products, while revenue from tinted glass and coated glass increased, and geographically, revenue from Mainland China and Hong Kong significantly declined, offset by growth in Nigeria, the Middle East, and Kazakhstan - The Group operates five reportable segments: clear glass, tinted glass, coated glass, energy-saving and new energy glass products, and design and installation related services[19](index=19&type=chunk) Revenue by Major Product or Service Line | Product or Service Line | 2025 (thousand RMB) | 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Sales of Glass Products | 1,989,647 | 2,501,835 | -20.47% | | Revenue from Service Contracts | 109,571 | 150,271 | -27.09% | | Sales of Other Products | 54,272 | 31,390 | +72.89% | | **Total** | **2,153,490** | **2,683,496** | **-19.75%** | Revenue by Customer Geographical Location | Geographical Location | 2025 (thousand RMB) | 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Mainland China and Hong Kong | 1,292,586 | 1,921,999 | -32.75% | | Nigeria | 220,626 | 163,219 | +35.17% | | Middle East | 161,243 | 145,902 | +10.51% | | Kazakhstan | 95,863 | 64,775 | +47.99% | | Other Countries | 383,172 | 387,601 | -1.14% | | **Total** | **2,153,490** | **2,683,496** | **-19.75%** | Gross (Loss)/Profit by Reportable Segment | Segment | 2025 (thousand RMB) | 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Clear Glass Products | (35,458) | (11,315) | Loss Expanded | | Tinted Glass Products | 10,339 | 67,548 | -84.70% | | Coated Glass Products | 135,906 | 129,602 | +4.87% | | Energy-Saving and New Energy Glass Products | 17,421 | 42,779 | -59.27% | | Design and Installation Related Services | 34,541 | 41,739 | -17.24% | | **Total** | **162,749** | **270,353** | **-39.79%** | [5. Other Income](index=12&type=section&id=5%20Other%20Income) For the six months ended June 30, 2025, other income significantly increased by **97.40%**, primarily due to a substantial increase in net gain from disposal of property, plant and equipment, offsetting declines in government grants, interest income, and net gain from sales of raw materials and scrap | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Government Grants | 10,399 | 23,475 | -55.69% | | Interest Income | 16,372 | 19,635 | -16.62% | | Net Gain from Sales of Raw Materials and Scrap | 11,043 | 21,313 | -48.19% | | Net Gain/(Loss) from Disposal of Property, Plant and Equipment | 102,730 | (2,019) | Turned from Loss to Gain | | Others | 1,823 | 9,714 | -81.23% | | **Total** | **142,367** | **72,118** | **+97.40%** | - The net gain from disposal of property, plant and equipment primarily resulted from the completed disposal of property, plant and equipment and right-of-use assets of a subsidiary for **RMB297,551,000**[26](index=26&type=chunk) [6. Loss Before Tax](index=12&type=section&id=6%20Loss%20Before%20Tax) For the six months ended June 30, 2025, loss before tax significantly increased to **RMB290,442,000** from **RMB149,872,000** in the prior period, primarily influenced by a slight increase in finance costs and net foreign exchange losses Finance Costs | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Interest on Bank Loans and Other Borrowings | 182,880 | 203,682 | -10.21% | | Interest on Lease Liabilities | 2,338 | 2,699 | -13.30% | | Bank Charges and Other Finance Costs | 47,324 | 33,552 | +41.05% | | Total Borrowing Costs | 232,542 | 239,933 | -3.08% | | Less: Amounts Capitalized | (17,139) | (5,574) | Capitalization Increased | | Net Borrowing Costs | 215,403 | 234,359 | -8.10% | | Net Foreign Exchange Loss/(Gain) | 15,686 | (4,586) | Turned from Gain to Loss | | **Total Finance Costs** | **231,089** | **229,773** | **+0.57%** | Other Items | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Cost of Inventories | 1,917,425 | 2,413,143 | -20.54% | | Depreciation and Amortization Expenses | 354,402 | 327,143 | +8.33% | | Research and Development Costs (excluding capitalized amounts and related amortization) | 14,685 | 11,621 | +26.37% | [7. Income Tax](index=13&type=section&id=7%20Income%20Tax) For the six months ended June 30, 2025, the Group shifted from an income tax credit to an income tax expense, primarily due to taxes arising from the disposal of property, plant and equipment; different corporate income tax rates apply to subsidiaries in various regions, with some Mainland China subsidiaries benefiting from preferential rates for high-tech enterprises and additional tax deductions for R&D costs | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Current Tax (Mainland China) | 25,889 | 9,200 | +181.40% | | Current Tax (Overseas) | 3,754 | 4,920 | -23.69% | | Deferred Tax | (1,342) | (27,104) | Improved by 95.05% | | **Total Income Tax** | **28,301** | **(12,984)** | **Turned from Credit to Expense** | - Income tax expense primarily arose from the consideration for the disposal of property, plant and equipment and right-of-use assets[85](index=85&type=chunk) - Mainland China subsidiaries are subject to a **25%** corporate income tax rate, with some high-tech enterprises enjoying a **15%** preferential rate and **100%** additional tax deduction for R&D costs[31](index=31&type=chunk) - The Kazakhstan subsidiary enjoys corporate income tax exemption from 2016 to 2025[32](index=32&type=chunk) [8. Loss Per Share](index=14&type=section&id=8%20Loss%20Per%20Share) For the six months ended June 30, 2025, basic loss per share increased to **RMB0.15** from **RMB0.07** in the prior period, with diluted loss per share being the same as basic loss per share due to the absence of potential dilutive shares | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Loss Attributable to Ordinary Equity Holders of the Company (thousand RMB) | (258,451) | (119,006) | Increased by 117.17% | | Weighted Average Number of Ordinary Shares in Issue (thousand shares) | 1,684,218 | 1,684,218 | No Change | | Basic Loss Per Share (RMB) | (0.15) | (0.07) | Increased by 114.29% | | Diluted Loss Per Share (RMB) | (0.15) | (0.07) | Increased by 114.29% | [9. Trade and Bills Receivables](index=15&type=section&id=9%20Trade%20and%20Bills%20Receivables) As of June 30, 2025, total trade and bills receivables increased by **16.54%**, primarily due to an increase in third-party trade receivables and a corresponding increase in loss allowance, with the aging analysis showing a significant rise in receivables aged more than six months but less than one year | Item | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Trade Receivables from Third Parties | 523,160 | 430,374 | +21.56% | | Trade Receivables from Kaisheng Group and its Associates | 594 | 1,371 | -56.67% | | Loss Allowance | (160,390) | (139,636) | Increased by 14.86% | | Bills Receivables | 26,336 | 42,287 | -37.72% | | **Total** | **389,700** | **334,396** | **+16.54%** | Aging Analysis of Trade and Bills Receivables (net of loss allowance) | Aging | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Within one month | 144,660 | 151,871 | -4.75% | | More than one month but less than three months | 114,278 | 97,562 | +17.13% | | More than three months but less than six months | 54,275 | 60,161 | -9.78% | | More than six months but less than one year | 61,229 | 6,768 | +804.69% | | Over one year | 15,258 | 18,034 | -15.39% | | **Total** | **389,700** | **334,396** | **+16.54%** | [10. Other Receivables](index=16&type=section&id=10%20Other%20Receivables) As of June 30, 2025, total other receivables slightly decreased, primarily due to stable amounts due from related parties and an increase in loss allowance within deposits and other receivables | Item | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Amounts Due from Related Parties | 115,408 | 115,408 | 0.00% | | Deposits and Other Receivables (net of loss allowance) | 154,252 | 156,896 | -1.69% | | VAT to be Deducted/Deductible | 184,619 | 184,989 | -0.20% | | **Total** | **454,279** | **457,293** | **-0.66%** | - Amounts due from related parties are unsecured, interest-free, and have no fixed repayment terms[38](index=38&type=chunk) [11. Trade and Bills Payables](index=17&type=section&id=11%20Trade%20and%20Bills%20Payables) As of June 30, 2025, total trade and bills payables increased by **13.25%**, primarily due to higher trade payables to third parties and bills payables, with the aging analysis indicating that the majority of amounts are repayable within one month or on demand | Item | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Trade Payables to Third Parties | 808,517 | 716,531 | +12.83% | | Trade Payables to Kaisheng Group and its Associates | 222,810 | 214,172 | +4.03% | | Bills Payables | 239,496 | 191,458 | +25.09% | | **Total** | **1,270,823** | **1,122,161** | **+13.25%** | Aging Analysis of Trade and Bills Payables | Aging | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Within one month or on demand | 1,073,831 | 955,897 | +12.34% | | More than one month but within six months | 184,146 | 166,264 | +10.76% | | More than six months but within one year | 12,846 | – | Newly Added | | **Total** | **1,270,823** | **1,122,161** | **+13.25%** | [12. Accruals and Other Payables](index=18&type=section&id=12%20Accruals%20and%20Other%20Payables) As of June 30, 2025, total accruals and other payables slightly decreased, primarily due to a reduction in payables related to the construction and purchase of property, plant and equipment, while amounts due to related parties remained stable | Item | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | Change | | :--- | :--- | :--- | :--- | | Amounts Due to Related Parties | 1,087,611 | 1,082,204 | +0.50% | | Accruals and Other Payables (financial liabilities measured at amortized cost) | 1,574,758 | 1,625,860 | -3.14% | | Various Taxes Payable | 48,628 | 60,490 | -19.59% | | Provision for Legal Claims | 488 | 1,506 | -67.59% | | **Total** | **1,623,874** | **1,687,856** | **-3.80%** | - Amounts due to related parties are unsecured, interest-free, and have no fixed repayment terms[40](index=40&type=chunk) [13. Share Capital, Reserves and Dividends](index=19&type=section&id=13%20Share%20Capital%2C%20Reserves%20and%20Dividends) The Board does not recommend an interim dividend for the six months ended June 30, 2025; the company has a share option scheme and a share award scheme, but no share options were granted or exercised, nor were any share awards granted to employees during the period - The Board does not recommend an interim dividend for the six months ended June 30, 2025[41](index=41&type=chunk) - Neither the share option scheme nor the share award scheme had any share options granted or exercised, or share awards granted to any selected employees during the period[42](index=42&type=chunk)[44](index=44&type=chunk) - As of June 30, 2025, the number of shares held under the share award scheme was **152,000 thousand shares**, consistent with the prior period[44](index=44&type=chunk) [14. Contingent Liabilities](index=20&type=section&id=14%20Contingent%20Liabilities) The Group faces two main contingent liabilities: first, the Kazakhstan subsidiary Orda Glass Ltd LLP was accused of exceeding pollutant emission limits and fined, but the fine was subsequently revoked by the court, with the final outcome remaining uncertain; second, loan defaults and cross-defaults occurring after the reporting period may lead to penalty interest, the amount of which cannot be reliably estimated at present - Kazakhstan subsidiary Orda Glass was fined for exceeding pollutant emission limits, but the penalty was fully revoked upon appeal, though the final outcome remains uncertain[45](index=45&type=chunk) - Loan defaults and cross-defaults occurring after the reporting period may trigger penalty interest clauses, but the amount of penalty interest cannot be reliably estimated at present[46](index=46&type=chunk) [15. Non-Adjusting Events After the Reporting Period](index=21&type=section&id=15%20Non-Adjusting%20Events%20After%20the%20Reporting%20Period) Subsequent to the reporting period, the Group incurred loan defaults totaling **RMB1,295,854,000** and triggered cross-default clauses on approximately **RMB6,711,453,000** of other outstanding borrowings, resulting in a total of **RMB8,007,307,000** in borrowings becoming immediately repayable; this interim financial report did not reclassify non-current borrowings to current liabilities as a result, and management is actively taking measures to alleviate liquidity pressure - Subsequent to the reporting period, the Group incurred loan defaults totaling **RMB1,295,854,000**, including a syndicated loan and multiple bank borrowings[47](index=47&type=chunk) - These defaults triggered cross-default clauses on approximately **RMB6,711,453,000** of other outstanding borrowings, resulting in a total of **RMB8,007,307,000** in borrowings becoming immediately repayable[47](index=47&type=chunk) - This interim financial report did not reclassify non-current bank and other borrowings to current liabilities due to the triggering of cross-default clauses[47](index=47&type=chunk) [Management Discussion and Analysis](index=22&type=section&id=Management%20Discussion%20and%20Analysis) [Market Review](index=22&type=section&id=Market%20Review) In the first half of 2025, the global economy faced downward pressure with a tightening international trade environment; the domestic real estate sector showed weak recovery, leading to oversupply and price pressure in the architectural glass market, while the photovoltaic industry experienced supply-demand imbalance and shrinking profit margins, in contrast to the steady development of the concentrated solar power industry - Global economic downturn, tightening international trade environment, and declining investments in sustainable development and cross-border project financing[48](index=48&type=chunk) - Weak recovery in the domestic real estate sector, oversupply in the architectural glass market, and product price pressure[49](index=49&type=chunk) - The photovoltaic industry experienced supply-demand imbalance and shrinking profit margins, while the concentrated solar power industry maintained steady development with high market prosperity for solar thermal glass[49](index=49&type=chunk) [Business Review](index=23&type=section&id=Business%20Review) The Group operates 15 float glass production lines (11 currently running), offering diverse glass products, and actively pursues a "going out" strategy with operations in Nigeria, Kazakhstan, and Italy; in the first half, both glass production and sales volumes decreased, accompanied by a significant drop in average selling prices, prompting the company to focus on "three major battles" (cash flow improvement, cost reduction, loss management) and achieve progress in overseas operations, technological innovation, performance assessment, and compliance management - The Group operates **15 float glass production lines**, with **11 currently running**, and its products are applied in construction, automotive, solar power generation, and other fields[50](index=50&type=chunk) - Actively implementing the "going out" strategy, the Group has completed industrial layouts in Nigeria, Kazakhstan, and Italy, and is advancing the construction of a float glass production line in Egypt[51](index=51&type=chunk) Production, Sales, and Average Selling Price Overview | Metric | H1 2025 | Prior Period | Change | | :--- | :--- | :--- | :--- | | Various Glass Products Production Volume | Approx. 28 million weight boxes | - | Decreased by approx. 8% | | Sales Volume | Approx. 25 million weight boxes | - | Decreased by approx. 1% | | Comprehensive Average Selling Price | RMB80/weight box | - | Decreased by approx. 20% | - In the first half, soda ash prices declined, mineral raw material prices fluctuated at low levels but transportation costs increased; domestic pipeline gas prices declined, while petroleum coke prices fluctuated upwards[53](index=53&type=chunk)[54](index=54&type=chunk) - The company implemented "three major battles" (cash flow improvement, cost reduction, loss management), achieving results through energy management, lean production, product structure optimization, asset operation enhancement, and organizational efficiency improvement[55](index=55&type=chunk)[56](index=56&type=chunk)[57](index=57&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk) - Overseas subsidiaries performed well, with **Nigeria company's net profit significantly increasing**, Kazakhstan company improving operational quality and efficiency, Italy company experiencing strong growth in its photovoltaic business, and the Egypt project progressing in an orderly manner[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk) - Significant technological innovation achievements include mass production of new low-resistance home appliance Low-E glass and triple-silver high-performance Low-E glass, with "China Glass Blue" high-performance energy-saving glass selected as an industry demonstration case[64](index=64&type=chunk) - Strengthened performance appraisal mechanisms, deepened the link between performance and remuneration; enhanced corporate culture and employee cohesion through enterprise craftsman selection and 20th-anniversary listing activities[65](index=65&type=chunk) - Comprehensively strengthened compliance management, enhanced legal literacy and risk prevention capabilities; improved capital market monitoring system, increased brand exposure, and achieved the highest "A+" ESG rating in the building materials industry[66](index=66&type=chunk) [Market Outlook and Second Half Work Plan](index=28&type=section&id=Market%20Outlook%20and%20Second%20Half%20Work%20Plan) Global economic growth is expected to slow further in the second half of 2025, with China's real estate and photovoltaic markets undergoing deep adjustments, accelerating the elimination of outdated capacity in the flat glass industry; demand in niche markets such as automotive glass, energy-efficient architectural glass, conductive glass, and solar thermal glass is projected to remain robust, while raw material prices are anticipated to trend downwards or remain stable with slight decreases; the second half work plan includes coordinating debt restructuring, deepening the "going out" strategy, driving product structure transformation through technological upgrades, and continuously advancing the "three major battles" to optimize resource allocation - Global economic growth in the second half of 2025 is expected to slow further due to US trade barriers, with China's real estate and photovoltaic power generation markets entering a period of deep adjustment[67](index=67&type=chunk) - Market demand in niche segments such as automotive glass, energy-efficient architectural glass, and conductive glass will continue its boom cycle, with a significant increase in demand for high-performance solar thermal glass in the concentrated solar power sector[68](index=68&type=chunk)[69](index=69&type=chunk) - The soda ash and various mineral raw material markets are expected to enter a weak operating phase in the second half, with prices continuing to decline or remaining stable with slight decreases; natural gas prices will maintain mid-year fluctuation levels, and petroleum coke prices are projected to decline[70](index=70&type=chunk)[71](index=71&type=chunk) - The second half work plan includes: coordinating the debt restructuring plan to ensure debt repayment and going concern ability; steadfastly deepening the "going out" development strategy to enhance the performance contribution of overseas companies; driving product structure transformation and upgrading through technological advancements to improve the operating performance of domestic bases; and continuously advancing the "three major battles" to optimize the resource allocation system[72](index=72&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk) [Financial Review](index=30&type=section&id=Financial%20Review) In the first half of 2025, the Group's revenue decreased by **20%** year-on-year, primarily due to lower sales volume and average selling prices; gross profit significantly declined by **40%**, mainly driven by reduced selling prices of glass products in Mainland China; administrative expenses slightly decreased, finance costs slightly increased, and income tax shifted from a credit to an expense; the loss for the period substantially increased by **132.85%**, primarily impacted by the sluggish domestic real estate and photovoltaic markets and macroeconomic uncertainties; both current and non-current assets decreased, current liabilities slightly reduced, and non-current liabilities decreased by **12%** Revenue by Product Segment Change | Segment | 2025 (thousand RMB) | 2024 (thousand RMB) | Change Percentage | | :--- | :--- | :--- | :--- | | Clear Glass | 732,652 | 1,153,320 | (36%) | | Tinted Glass | 405,459 | 374,406 | 8% | | Coated Glass | 434,206 | 430,096 | 1% | | Energy-Saving and New Energy Glass | 417,330 | 544,013 | (23%) | | Design and Installation Related Services | 163,843 | 181,661 | (10%) | | **Total** | **2,153,490** | **2,683,496** | **(20%)** | - Revenue from clear glass and energy-saving and new energy glass products decreased by **36%** and **23%** respectively, primarily due to lower sales volume and average selling prices of ordinary architectural glass and photovoltaic glass[78](index=78&type=chunk) - Sales volumes of tinted glass and coated glass products increased by approximately **46%** and **17%** respectively, while export glass product sales increased by approximately **95%**, and overseas glass product sales increased by approximately **14%**[79](index=79&type=chunk) - The average selling price of glass products decreased by approximately **20%** compared to the prior period, primarily due to the sluggish domestic real estate sector and intense competition, with the domestic average selling price decreasing by approximately **28%**[80](index=80&type=chunk) - Cost of sales decreased by approximately **18%**, primarily due to a decrease in the unit cost of glass products sold[81](index=81&type=chunk) - Gross profit decreased by approximately **40%**, primarily due to a decline in the average selling price of glass products in Mainland China[82](index=82&type=chunk) - The loss for the period significantly increased by **132.85%**, primarily impacted by the downturn in China's real estate and photovoltaic industries, market oversupply, and macroeconomic uncertainties[86](index=86&type=chunk) - Current assets decreased by approximately **14%**, non-current assets decreased by approximately **2%**, current liabilities slightly decreased by approximately **1%**, and non-current liabilities decreased by approximately **12%**[87](index=87&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk) [Capital Structure, Liquidity, Financial Resources and Gearing Ratio](index=34&type=section&id=Capital%20Structure%2C%20Liquidity%2C%20Financial%20Resources%20and%20Gearing%20Ratio) As of June 30, 2025, the Group's cash and bank balances decreased, and total outstanding bank loans and other borrowings decreased, with **76%** maturing within one year; cross-default clauses triggered after the reporting period led to a large amount of borrowings becoming immediately repayable; while the debt-to-equity ratio and gearing ratio remained stable, the current ratio declined and net current liabilities increased, indicating continued liquidity pressure Liquidity and Liability Metrics | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash and Bank Balances (thousand RMB) | 1,017,474 | 1,302,086 | -21.86% | | Outstanding Bank Loans and Other Borrowings (thousand RMB) | 9,321,088 | 9,916,940 | -6.01% | | Debt-to-Equity Ratio | 0.7 | 0.7 | No Change | | Current Ratio | 0.31 | 0.36 | -13.89% | | Net Current Liabilities (thousand RMB) | (7,179,129) | (6,800,076) | Deteriorated by 5.57% | | Gearing Ratio | 0.95 | 0.94 | Slight Increase | | Proportion of Borrowings Due Within One Year | 76% | 74% | Increased | | Proportion of Borrowings Due After One Year | 24% | 26% | Decreased | - Subsequent to the reporting period, cross-default clauses were triggered on borrowings of **RMB1,760,409,000** originally due after one year, resulting in these borrowings becoming immediately repayable[92](index=92&type=chunk) [Exchange Rate Fluctuation Risk and Hedging](index=35&type=section&id=Exchange%20Rate%20Fluctuation%20Risk%20and%20Hedging) The Group's transactions and monetary assets are primarily denominated in RMB, Naira, Tenge, USD, and Euro; fluctuations in the RMB exchange rate against other currencies may impact the Group's net assets, profit or loss, and dividends; as of June 30, 2025, the Group had not purchased any derivative instruments for hedging purposes - The Group's transactions and monetary assets are primarily denominated in RMB, Naira, Tenge, USD, and Euro[94](index=94&type=chunk) - Fluctuations in the RMB exchange rate against other currencies may impact the Group's net assets, profit or loss, and dividends[94](index=94&type=chunk) - For the six months ended June 30, 2025, the Group had not purchased any derivative instruments for hedging purposes[94](index=94&type=chunk) [Significant Acquisitions and Disposals, Material Investments and Future Plans for Material Investments or Capital Asset Acquisitions](index=35&type=section&id=Significant%20Acquisitions%20and%20Disposals%2C%20Material%20Investments%20and%20Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Asset%20Acquisitions) For the six months ended June 30, 2025, the Group had no significant investments, acquisitions or disposals of subsidiaries and associates, nor any future plans for material investments or capital asset acquisitions - During the period, there were no significant investments, acquisitions or disposals of subsidiaries and associates, or future plans for material investments or capital asset acquisitions[96](index=96&type=chunk) [Significant Events After the Reporting Period](index=35&type=section&id=Significant%20Events%20After%20the%20Reporting%20Period) Significant events impacting the Group occurred after the reporting period, with details disclosed in Note 15 to the Unaudited Interim Financial Information, primarily concerning loan defaults and cross-defaults - Significant events impacting the Group occurred after the reporting period, with details disclosed in Note 15 to the Unaudited Interim Financial Information[97](index=97&type=chunk) [Corporate Governance and Other Information](index=36&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Human Resources and Employee Remuneration](index=36&type=section&id=Human%20Resources%20and%20Employee%20Remuneration) As of June 30, 2025, the Group's employee headcount decreased by approximately **14.84%**, primarily due to management's phased elimination of less profitable production lines in Mainland China; the company ensures competitive employee remuneration and provides welfare plans compliant with local labor laws and regulations | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Number of Employees | Approx. 3,908 | Approx. 4,589 | -14.84% | - The decrease in employee headcount was primarily due to management's prudent decision to gradually phase out less profitable production lines in Mainland China, along with the formulation of detailed redundancy plans and compensation schemes[98](index=98&type=chunk) - The Group ensures competitive employee remuneration and provides welfare plans compliant with local labor laws and regulations[99](index=99&type=chunk) [Interim Dividend](index=36&type=section&id=Interim%20Dividend) The Board has resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board has resolved not to declare an interim dividend for the six months ended June 30, 2025[100](index=100&type=chunk) [Share Option Scheme and Share Award Scheme](index=36&type=section&id=Share%20Option%20Scheme%20and%20Share%20Award%20Scheme) The company has a share option scheme and a share award scheme designed to incentivize and retain employees; for the six months ended June 30, 2025, no share options were granted or exercised, nor were any share awards granted, exercised, cancelled, or lapsed under either scheme; the share award scheme has been extended to December 12, 2031 - The company has a share option scheme and a share award scheme aimed at incentivizing and retaining employees[101](index=101&type=chunk)[102](index=102&type=chunk) - For the six months ended June 30, 2025, no share options or share awards were granted, exercised, cancelled, or lapsed under either scheme[101](index=101&type=chunk)[107](index=107&type=chunk) - The share award scheme has been extended to December 12, 2031[107](index=107&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=38&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 - During the period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities[108](index=108&type=chunk) [Sufficiency of Public Float](index=38&type=section&id=Sufficiency%20of%20Public%20Float) For the six months ended June 30, 2025, and up to the latest practicable date before the publication of this announcement, the company maintained a public float of not less than **25%** as required by the Listing Rules of the Hong Kong Stock Exchange - The company has maintained a public float of not less than **25%** as required by the Listing Rules of the Hong Kong Stock Exchange[109](index=109&type=chunk) [Audit Committee](index=38&type=section&id=Audit%20Committee) The company's Audit Committee has reviewed the Group's accounting principles, operations, risk management, internal controls, and financial reporting matters, including these interim results, with management and external auditor KPMG - The Audit Committee has reviewed the Group's accounting principles, operations, risk management, internal controls, and financial reporting matters, including these interim results, with management and KPMG[110](index=110&type=chunk) [Excerpt from Review Report on Interim Financial Information](index=39&type=section&id=Excerpt%20from%20Review%20Report%20on%20Interim%20Financial%20Information) External auditor KPMG highlighted significant going concern uncertainties in its review report, primarily due to net losses, net current liabilities, and loan defaults and cross-defaults occurring after the reporting period, leading to a large amount of borrowings becoming immediately repayable; the auditor's review conclusion on this matter remains unmodified - The auditor emphasized significant going concern uncertainties for the Group due to net losses, net current liabilities, and loan defaults and cross-defaults occurring after the reporting period[111](index=111&type=chunk) - The auditor's review conclusion on this going concern matter remains unmodified[111](index=111&type=chunk) [Investor Relations and Communication](index=39&type=section&id=Investor%20Relations%20and%20Communication) The company actively promotes investor relations and facilitates communication through regular meetings with institutional investors and financial analysts to ensure two-way dialogue - The company actively promotes investor relations and facilitates communication through regular meetings[112](index=112&type=chunk) [Compliance with the Corporate Governance Code and the Model Code for Securities Transactions by Directors](index=39&type=section&id=Compliance%20with%20the%20Corporate%20Governance%20Code%20and%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has applied and complied with the principles and applicable code provisions of the Corporate Governance Code set out in Appendix C1 to the Listing Rules, and all directors confirmed their compliance with the Model Code for Securities Transactions by Directors throughout the period - The company has applied and complied with the principles and applicable code provisions of the Corporate Governance Code set out in Appendix C1 to the Listing Rules[113](index=113&type=chunk) - All directors confirmed their compliance with the Model Code for Securities Transactions by Directors throughout the period[114](index=114&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=40&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement has been published on the websites of Hong Kong Exchanges and Clearing Limited and the company; the interim report containing all information will be dispatched to shareholders and published on the aforementioned websites in due course - This interim results announcement has been published on the websites of Hong Kong Exchanges and Clearing Limited and the company[115](index=115&type=chunk) - The interim report containing all information will be dispatched to shareholders and published on the aforementioned websites in due course[115](index=115&type_chunk)

Primary Market - A total of 31 offshore bonds were issued this week (August 18-22, 2025), including 2 offshore RMB bonds, 19 USD bonds, 8 HKD bonds, 1 THB bond, and 1 JPY bond, with issuance scales of 1.484 billion RMB, 10.097 billion USD, 4.25 billion HKD, 700 million THB, and 10.1 billion JPY [1] - The largest single issuance in the offshore RMB bond market was 774 million RMB by Hangzhou Fuyang Transportation Development Investment Group [1] - The highest coupon rate for RMB bonds this week was 5%, issued by Zhengzhou Jianzhong Construction Development Group [1] - In the USD bond market, the largest single issuance was 5 billion USD by the International Bank for Reconstruction and Development, with the highest coupon rate of 7% issued by Zhangzhou Yuanshan Development Co., Ltd. [1] Secondary Market - The yield on Chinese USD bonds mostly increased this week, with the Markit iBoxx Chinese USD bond composite index rising by 0.03% to 246.82 [2] - The investment-grade USD bond index also increased by 0.03% to 239.26, while the high-yield USD bond index rose by 0.04% to 246.82 [2] - The real estate USD bond index decreased by 0.09% to 183.34, while the city investment USD bond index increased by 0.1% to 150.95 [2] - The financial USD bond index rose by 0.04% to 286.88 [2] Default and Restructuring - China Glass announced a default on a loan of 140 million USD, failing to make a payment of 141.7 million USD on the due date [4] - Country Garden is working towards completing its overseas debt restructuring by the end of 2025, with strong support from creditors [10] - Sunac China announced plans to restructure 9.552 billion USD of debt, with approximately 75% of creditors signing a support agreement [11] - Guangzhou Times Holdings announced a suspension of all outstanding corporate bonds starting August 25, 2025, to arrange for future debt repayments [12] - Yuzhou Group's restructuring proposal for its 375 million USD offshore debt due in 2027 has been approved by a majority of qualified bondholders [13] Market News - The Bond Connect Northbound trading volume reached 957.6 billion RMB in July, with policy financial bonds and government bonds being the most active [5] - A total of 14 new science and technology innovation bond ETFs were reported on August 20, indicating rapid expansion in this category [6][7] - The People's Bank of China announced the issuance of 45 billion RMB central bank bills in Hong Kong, with two different maturities [8] Overseas News - The Federal Reserve's July meeting minutes indicated expectations of rising inflation in the short term, with most officials believing inflation risks outweigh employment risks [9]

Group 1 - The company expects to incur a loss of up to RMB 320 million for the six months ending June 3, 2025, compared to a net loss of approximately RMB 137 million for the six months ending June 30, 2024 [1] - The losses are primarily attributed to the prolonged downturn in the Chinese real estate sector, leading to a "supply exceeds demand" situation in the construction glass market, which keeps prices low [1] - The photovoltaic industry in China continues to experience a "supply-demand mismatch," further compressing profit margins across the entire solar power value chain [1] Group 2 - Macroeconomic uncertainties, including geopolitical instability, fluctuating international trade policies, and currency exchange rate volatility, have weakened the contribution of the company's overseas production base's strong performance to overall profitability [1]

Group 1 - The company expects a loss of up to RMB 320 million for the six months ending June 3, 2025, compared to a net loss of approximately RMB 137 million for the six months ending June 30, 2024 [1] - The losses are primarily attributed to the prolonged downturn in the Chinese real estate sector, leading to an oversupply and weak demand in the construction glass market, which keeps prices low [1] - The photovoltaic industry in China continues to experience a mismatch in supply and demand, further narrowing the profit margins across the entire photovoltaic power generation value chain [1] Group 2 - Macroeconomic uncertainties, including geopolitical tensions, fluctuating international trade policies, and currency exchange rate volatility, have weakened the contribution of the company's overseas production base's strong performance to overall profitability [1]

Core Viewpoint - China Glass (03300.HK) anticipates a loss of up to RMB 320 million for the six months ending June 30, 2025, following a net loss of approximately RMB 137 million for the six months ending June 30, 2024, primarily due to ongoing challenges in the real estate and photovoltaic industries, as well as macroeconomic uncertainties [1] Industry Summary - The Chinese real estate sector continues to experience a downturn, leading to a "supply exceeds demand" situation in the construction glass market, which keeps prices at low levels [1] - The photovoltaic industry is facing a persistent "supply-demand mismatch," further compressing profit margins across the entire solar power value chain [1] - Geopolitical instability, fluctuating international trade policies, and currency exchange rate volatility are increasing macroeconomic uncertainties, which have diminished the contribution of the company's overseas production performance to overall profitability [1]

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 不對因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的 任 何 損 失 承 擔 任 何 責 任。 盈利警告 本 公 告 乃 由 中 國 玻 璃 控 股 有 限 公 司（「本公司」，連 同 其 附 屬 公 司 統 稱 為「本 集 團」）根 據 香 港 聯 合 交 易 所 有 限 公 司 證 券 上 市 規 則（「上市規則」）第13.09 條及香港法例第571章證券及期貨條例第XIVA部 項 下 之 內 幕 消 息 條 文（定 義 見 上 市 規 則）作 出。 本 公 司 董 事 會（「董事會」）謹 此 知 會 本 公 司 股 東 及 潛 在 投 資 者，根 據 對 本 集團截至二零二五年六月三十日止 六個月 之未經審核綜合管理賬目及 其 他 現 時 可 得 資 料 之 初 步 審 閱，本 集 團 預 期 截 至 二 零 二 五 年 六 月 三 十 日 止 六個月 將錄得人民幣不超過3.2億 元 的 虧 損，而 截 至 二 零 二 四 ...

Core Viewpoint - China Glass (03300.HK) is facing potential default on a loan agreement due to weak demand for construction glass products, which has negatively impacted accounts receivable and cash flow [1] Financing Agreement - On July 8, 2022, the company entered into a financing agreement with a syndicate of lenders represented by Standard Chartered Bank (Hong Kong) [1] - The financing is secured by the company's accounts and has an outstanding principal of 141.7 million USD, due on August 15, 2025 [1] Default Risk - The company is unable to fulfill its repayment obligations by the due date due to the ongoing downturn in the real estate sector, leading to a breach of the financing agreement [1] - This default could have negative implications for the company's operations [1] Mitigation Efforts - The company is actively seeking professional advice to address the current situation and is in discussions with financial advisors and potential financing sources to raise funds for repayment [1] - The board is exploring various options to resolve, extend, or restructure the existing bank financing and is in ongoing negotiations with lenders [1] - An emergency plan is being developed to ensure the company's debt repayment capability remains intact in case refinancing is not completed in a timely manner [1]