[Interim Results Highlights and Financial Overview](index=1&type=section&id=Interim%20Results%20Highlights%20and%20Financial%20Overview) [Performance Summary](index=1&type=section&id=Performance%20Summary) The Group's H1 2025 revenue slightly decreased by 0.2% YoY, but it achieved profitability with a significant increase in profit attributable to equity holders and positive basic earnings per share. The Board recommended no interim dividend Key Financial Data for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 83,280 | 83,470 | -0.2% | | Profit/(Loss) Attributable to Equity Holders | 1,360 | (2,018) | Turned loss into profit | | Basic Earnings/(Loss) Per Share | 0.172 RMB | (0.239) RMB | Turned loss into profit | - The Board recommended no interim dividend for the six months ended June 30, 2025[2](index=2&type=chunk) [Condensed Consolidated Income Statement](index=2&type=section&id=Condensed%20Consolidated%20Income%20Statement) In H1 2025, the Group's revenue slightly decreased, but effective control over cost of sales, administrative expenses, and finance costs, coupled with significant growth in investment and other income and share of results of associates, led to a substantial increase in profit for the period and a return to profitability Condensed Consolidated Income Statement (For the six months ended June 30) | Indicator (RMB thousand) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | 83,279,904 | 83,470,594 | -0.23% | | Cost of Sales | (67,299,968) | (70,217,099) | 4.16% (Decrease) | | Gross Profit | 15,979,936 | 13,253,495 | 20.57% (Growth) | | Investment and Other Income, Net | 2,053,943 | 1,183,823 | 73.50% (Growth) | | Administrative Expenses | (8,934,012) | (9,913,658) | 9.88% (Decrease) | | Finance Costs, Net | (2,286,152) | (2,441,944) | 6.38% (Decrease) | | Share of Results of Associates | 680,218 | 340,979 | 99.49% (Growth) | | Profit/(Loss) for the Period | 3,964,811 | (292,353) | Turned loss into profit | | Profit/(Loss) Attributable to Equity Holders of the Company | 1,360,196 | (2,017,616) | Turned loss into profit | | Basic Earnings/(Loss) Per Share | 0.172 | (0.239) | Turned loss into profit | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) In H1 2025, the Group's total comprehensive income for the period significantly increased, primarily due to a substantial improvement in profit for the period and a shift from exchange loss to gain Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Indicator (RMB thousand) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Profit/(Loss) for the Period | 3,964,811 | (292,353) | Turned loss into profit | | Exchange Differences | 85,489 | (63,817) | From loss to profit | | Total Comprehensive Income/(Expense) for the Period | 4,050,790 | (327,342) | Turned loss into profit | | Total Comprehensive Income/(Expense) Attributable to Equity Holders of the Company | 1,384,674 | (2,049,671) | Turned loss into profit | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets and liabilities both increased, but net assets slightly decreased. Non-current assets maintained stable growth, while inventories and trade and other receivables within current assets significantly rose. Borrowings in current liabilities substantially increased, leading to an expanded net current liabilities Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator (RMB thousand) | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Total Non-current Assets | 352,332,350 | 349,967,814 | 0.68% (Growth) | | Total Current Assets | 153,407,898 | 144,039,462 | 6.50% (Growth) | | Inventories | 21,566,677 | 16,951,294 | 27.22% (Growth) | | Trade and Other Receivables (Current) | 95,270,468 | 87,592,581 | 8.76% (Growth) | | **Liabilities** | | | | | Total Current Liabilities | 201,713,875 | 181,463,328 | 11.16% (Growth) | | Borrowings - repayable within one year | 102,530,326 | 82,128,645 | 24.84% (Growth) | | Net Current Liabilities | (48,305,977) | (37,423,866) | 29.08% (Expanded) | | Total Non-current Liabilities | 111,249,434 | 118,016,063 | -5.65% (Decrease) | | **Equity** | | | | | Net Assets | 192,776,939 | 194,527,885 | -0.90% (Decrease) | | Equity Attributable to Equity Holders of the Company | 100,170,879 | 103,121,124 | -2.86% (Decrease) | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [General Information and Basis of Preparation](index=7&type=section&id=General%20Information%20and%20Basis%20of%20Preparation) The company was established in China in 2005 and listed in Hong Kong in 2006, primarily engaged in the production and sale of basic building materials, new materials, and the provision of engineering technical services. The condensed consolidated financial statements are prepared in accordance with the HKEX Listing Rules and IAS 34, with the first-time application of IAS 21 amendments having no significant impact - The company's principal activities are the operation, production, and sale of basic building materials and new materials, and the provision of engineering technical services[9](index=9&type=chunk) - The condensed consolidated financial statements are prepared in accordance with the applicable disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and International Accounting Standard 34 "Interim Financial Reporting"[12](index=12&type=chunk) - The first-time application of the amendments to IAS 21 "Lack of Exchangeability" had no significant impact on the financial position and performance for the current interim period[14](index=14&type=chunk) [Segment Information](index=8&type=section&id=Segment%20Information) The Group is divided into five operating segments: Cement, Ready-Mixed Concrete, New Materials, Engineering Technical Services, and Others. Segment performance is disclosed using profit before interest, tax, depreciation, and amortization (EBITDA), which management believes better assesses each segment's operations [Segment Performance H1 2025](index=9&type=section&id=Segment%20Performance%20H1%202025) External Sales Revenue and Adjusted EBITDA by Segment for H1 2025 | Segment | External Sales Revenue (RMB thousand) | Adjusted EBITDA (RMB thousand) | | :--- | :--- | :--- | | Cement | 26,470,904 | 6,114,992 | | Ready-Mixed Concrete | 10,470,899 | 699,716 | | New Materials | 26,683,265 | 5,567,788 | | Engineering Technical Services | 17,364,316 | 2,003,782 | | Others | 2,290,520 | 126,220 | | **Total** | **83,279,904** | **14,512,498** | [Segment Assets and Liabilities H1 2025](index=10&type=section&id=Segment%20Assets%20and%20Liabilities%20H1%202025) Segment Assets and Liabilities as of June 30, 2025 | Segment | Segment Assets (RMB thousand) | Segment Liabilities (RMB thousand) | | :--- | :--- | :--- | | Cement | 232,098,324 | 140,048,814 | | Ready-Mixed Concrete | 48,307,476 | 22,606,396 | | New Materials | 92,484,222 | 41,018,258 | | Engineering Technical Services | 41,836,622 | 34,173,177 | | Others | 7,773,842 | 6,914,836 | | **Total** | **422,500,486** | **244,761,481** | [Segment Performance H1 2024](index=11&type=section&id=Segment%20Performance%20H1%202024) External Sales Revenue and Adjusted EBITDA/(Loss) by Segment for H1 2024 | Segment | External Sales Revenue (RMB thousand) | Adjusted EBITDA/(Loss) (RMB thousand) | | :--- | :--- | :--- | | Cement | 29,486,704 | 3,287,340 | | Ready-Mixed Concrete | 10,954,853 | 322,816 | | New Materials | 23,374,031 | 4,852,614 | | Engineering Technical Services | 16,125,785 | 1,850,736 | | Others | 3,529,221 | (414,564) | | **Total** | **83,470,594** | **9,898,942** | [Segment Assets and Liabilities FYE 2024](index=12&type=section&id=Segment%20Assets%20and%20Liabilities%20FYE%202024) Segment Assets and Liabilities as of December 31, 2024 | Segment | Segment Assets (RMB thousand) | Segment Liabilities (RMB thousand) | | :--- | :--- | :--- | | Cement | 229,610,948 | 138,759,882 | | Ready-Mixed Concrete | 47,754,612 | 20,392,785 | | New Materials | 85,134,943 | 38,200,200 | | Engineering Technical Services | 40,249,872 | 32,461,196 | | Others | 7,252,692 | 7,196,107 | | **Total** | **410,003,067** | **237,010,170** | [Reconciliation of Profit Before Income Tax](index=13&type=section&id=Reconciliation%20of%20Profit%20Before%20Income%20Tax) Reconciliation of Profit Before Income Tax (For the six months ended June 30) | Indicator (RMB thousand) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Segment Profit (EBITDA) | 14,512,498 | 9,898,942 | 46.61% (Growth) | | Operating Profit | 6,736,897 | 2,435,151 | 176.65% (Growth) | | Profit Before Income Tax | 5,125,453 | 327,196 | 1466.67% (Growth) | - The Group's five operating segments for the period are Cement, Ready-Mixed Concrete, New Materials, Engineering Technical Services, and Others[15](index=15&type=chunk) - Segment performance is disclosed as profit/(loss) before interest, tax, depreciation, and amortization[16](index=16&type=chunk) - Demand for cement products is typically higher in the second half of the year than in the first half, resulting in generally lower operating revenue and performance for the Group in the first half[16](index=16&type=chunk) [Investment and Other Income, Net](index=14&type=section&id=Investment%20and%20Other%20Income,%20Net) In H1 2025, the Group's net investment and other income significantly increased by 73.5%, primarily driven by higher government grants (especially VAT refunds), gains from disposal of subsidiaries and associates' interests, and a shift from fair value decrease to increase for financial assets at fair value through profit or loss Investment and Other Income, Net (For the six months ended June 30) | Income Source (RMB thousand) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Government Grants (Total) | 997,004 | 1,083,999 | -8.02% (Decrease) | | - VAT Refunds | 359,073 | 254,781 | 40.93% (Growth) | | Gain/(Loss) on Disposal of Subsidiaries, Net | 16,425 | (3,748) | From loss to profit | | Gain on Partial Disposal of Interests in Associates | 51,987 | – | New | | Net Fair Value Increase/(Decrease) of Financial Assets at FVTPL | 104,954 | (580,717) | From decrease to increase | | **Total** | **2,053,943** | **1,183,823** | **73.50% (Growth)** | - Government grants primarily include VAT refunds (to encourage comprehensive utilization of natural resources) and local government subsidies (to encourage development and contribution to the local economy)[27](index=27&type=chunk) [Finance Costs, Net](index=15&type=section&id=Finance%20Costs,%20Net) In H1 2025, the Group's net finance costs decreased by 6.38% YoY, mainly due to lower interest expenses on bank borrowings and bonds, and a decrease in interest income from bank deposits Finance Costs, Net (For the six months ended June 30) | Indicator (RMB thousand) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Interest Expense (Total) | 2,594,920 | 2,824,836 | -8.00% (Decrease) | | - Interest on Bank Borrowings | 1,877,673 | 2,037,573 | -7.85% (Decrease) | | - Interest on Bonds and Other Borrowings | 812,321 | 891,546 | -8.89% (Decrease) | | Interest Income (Total) | (308,768) | (382,892) | -19.49% (Decrease) | | - Interest on Bank Deposits | (203,624) | (301,237) | -32.39% (Decrease) | | **Finance Costs, Net** | **2,286,152** | **2,441,944** | **-6.38% (Decrease)** | [Components of Profit Before Income Tax](index=15&type=section&id=Components%20of%20Profit%20Before%20Income%20Tax) In H1 2025, the Group's total depreciation and amortization increased, while inventories expensed and staff costs decreased. Notably, a net exchange gain replaced last year's net loss Items Deducted From/(Credited To) Profit Before Income Tax (For the six months ended June 30) | Indicator (RMB thousand) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Depreciation and Amortization | 7,927,275 | 7,606,958 | 4.21% (Growth) | | Inventories Expensed | 54,405,964 | 62,516,797 | -13.06% (Decrease) | | Staff Costs | 10,312,502 | 10,585,358 | -2.58% (Decrease) | | Net Exchange (Gain)/Loss | (155,628) | 240,395 | From loss to profit | - There was no goodwill impairment loss in H1 2025, compared to RMB4,685 thousand in H1 2024[29](index=29&type=chunk) [Income Tax Expense](index=16&type=section&id=Income%20Tax%20Expense) In H1 2025, the Group's income tax expense significantly increased YoY, primarily due to higher current income tax expense, despite a decrease in deferred income tax credit. Management assessed no top-up tax is payable under Pillar Two rules Income Tax Expense (For the six months ended June 30) | Indicator (RMB thousand) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Current Income Tax Expense | 1,266,671 | 946,009 | 33.89% (Growth) | | Deferred Income Tax Credit | (106,029) | (326,460) | -67.59% (Decrease) | | **Income Tax Expense** | **1,160,642** | **619,549** | **87.34% (Growth)** | - China income tax is calculated at **25%**, with some subsidiaries enjoying a **15%** preferential tax rate or exemptions[30](index=30&type=chunk) - The Group's management believes that the estimated effective tax rate in all jurisdictions where it operates is above **15%**, thus no top-up tax is required under Pillar Two rules[30](index=30&type=chunk) [Dividends](index=16&type=section&id=Dividends) In H1 2025, the company declared and paid a final dividend of **RMB0.158 per share**, totaling approximately **RMB1,199.70 million**, a decrease from the prior year. The Board recommended no interim dividend Dividends (For the six months ended June 30) | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Final Dividend Declared (Per Share) | RMB0.158 | RMB0.229 | -30.99% (Decrease) | | Final Dividend Declared (Total) | RMB1,199,697 thousand | RMB1,931,562 thousand | -37.89% (Decrease) | - The Board recommended no interim dividend for the six months ended June 30, 2025[33](index=33&type=chunk) [Earnings/(Loss) Per Share](index=17&type=section&id=Earnings/(Loss)%20Per%20Share) In H1 2025, basic earnings per share attributable to equity holders of the company were **RMB0.172**, turning a loss into profit, compared to a basic loss per share of **RMB0.239** in the prior period Earnings/(Loss) Per Share - Basic and Diluted (For the six months ended June 30) | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Profit/(Loss) Attributable to Equity Holders of the Company (RMB thousand) | 1,360,196 | (2,017,616) | Turned loss into profit | | Basic Earnings/(Loss) Per Share (RMB) | 0.172 | (0.239) | Turned loss into profit | | Weighted Average Number of Ordinary Shares in Issue (thousand shares) | 7,918,560 | 8,434,771 | -6.00% (Decrease) | - The Group had no potentially dilutive ordinary shares outstanding during both periods, thus no adjustments were made in calculating diluted earnings/(loss) per share[34](index=34&type=chunk) [Trade and Other Receivables](index=17&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, the Group's total trade and other receivables increased to **RMB97,805 million**, primarily driven by growth in trade receivables and contract assets. The aging analysis of trade receivables shows increases in amounts due within two months and over two to three years Trade and Other Receivables (As of June 30, 2025) | Indicator (RMB thousand) | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Trade Receivables (Net of Allowance for Credit Losses) | 54,992,702 | 47,530,229 | 15.70% (Growth) | | Bills Receivable | 9,075,160 | 11,671,177 | -22.24% (Decrease) | | Contract Assets | 10,410,209 | 8,764,769 | 18.77% (Growth) | | Other Receivables, Deposits and Prepayments | 23,327,168 | 22,831,448 | 2.17% (Growth) | | **Total** | **97,805,239** | **90,797,623** | **7.72% (Growth)** | Aging Analysis of Trade Receivables (As of June 30, 2025) | Aging of Trade Receivables (RMB thousand) | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Within 2 months | 13,919,002 | 6,519,099 | 113.52% (Growth) | | Over 2 months but within 1 year | 21,527,982 | 21,822,297 | -1.35% (Decrease) | | 1 to 2 years | 10,840,698 | 11,534,849 | -6.02% (Decrease) | | 2 to 3 years | 5,350,561 | 4,631,271 | 15.53% (Growth) | | Over 3 years | 3,354,459 | 3,022,713 | 10.98% (Growth) | - The Group generally grants credit periods of 60 to 180 days to trade customers, while customers in the engineering technical services segment typically have credit periods ranging from 1 to 2 years[35](index=35&type=chunk) [Trade and Other Payables](index=18&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, the Group's total trade and other payables slightly decreased, mainly due to reductions in bills payable and other payables, offset by increases in trade payables and contract liabilities Trade and Other Payables (As of June 30, 2025) | Indicator (RMB thousand) | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Trade Payables | 47,328,206 | 46,360,344 | 2.09% (Growth) | | Bills Payable | 12,085,803 | 13,181,420 | -8.31% (Decrease) | | Contract Liabilities | 11,131,738 | 10,597,139 | 5.04% (Growth) | | Other Payables | 19,813,966 | 21,240,934 | -6.72% (Decrease) | | **Total** | **90,359,713** | **91,379,837** | **-1.12% (Decrease)** | - Credit periods for purchased products and services from suppliers range from 30 to 365 days, and bills payable have an aging within six months[38](index=38&type=chunk) [Business Operations Analysis](index=19&type=section&id=Business%20Operations%20Analysis) [Summary of Key Business Data](index=19&type=section&id=Summary%20of%20Key%20Business%20Data) The Group's segments showed mixed performance in H1 2025. Basic building materials generally saw lower sales volumes but recovering average selling prices, while new materials exhibited diversification with significant growth in sales volume and average selling prices for some products. Engineering services revenue maintained stable growth [Basic Building Materials Segment](index=19&type=section&id=Basic%20Building%20Materials%20Segment) Key Business Data for Basic Building Materials Segment (For the six months ended June 30) | Indicator | H1 2025 | H1 2024 | Growth Rate | | :--- | :--- | :--- | :--- | | Total Cement Clinker Sales Volume (thousand tons) | 97,779 | 113,844 | -14.1% | | Average Selling Price of Cement Clinker (RMB/ton) | 249.8 | 241.1 | 3.6% | | Ready-Mixed Concrete Sales Volume (thousand cubic meters) | 35,133 | 35,205 | -0.2% | | Average Selling Price of Ready-Mixed Concrete (RMB/cubic meter) | 298.2 | 312.0 | -4.4% | | Aggregates Sales Volume (thousand tons) | 62,965 | 64,224 | -2.0% | | Average Selling Price of Aggregates (RMB/ton) | 36.3 | 36.7 | -1.1% | [New Materials Segment](index=20&type=section&id=New%20Materials%20Segment) Key Business Data for New Materials Segment (For the six months ended June 30) | Product | H1 2025 Sales Volume | H1 2024 Sales Volume | Sales Volume Growth Rate | H1 2025 Average Selling Price | H1 2024 Average Selling Price | Price Growth Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Glass Fiber (thousand tons) | 2,032 | 2,010 | 1.1% | 4,547 RMB | 4,048 RMB | 12.3% | | Gypsum Board (million sq.m.) | 1,156.3 | 1,168.1 | -1.0% | 5.61 RMB | 6.12 RMB | -8.3% | | Wind Turbine Blades (MW) | 15,260 | 7,520 | 102.9% | 340,777 RMB | 377,563 RMB | -9.7% | | Coatings (thousand tons) | 719.29 | 446.22 | 61.2% | 3,491 RMB | 3,996 RMB | -12.6% | | Waterproofing Membranes (million sq.m.) | 126.8 | 117.1 | 8.3% | 13.57 RMB | 14.60 RMB | -7.1% | | Lithium Battery Separators (million sq.m.) | 1,299.7 | 814.4 | 59.6% | 0.71 RMB | 0.93 RMB | -23.7% | | Carbon Fiber (thousand tons) | 10.43 | 6.90 | 51.2% | 86,890 RMB | 104,130 RMB | -16.6% | [Engineering Services Revenue](index=21&type=section&id=Engineering%20Services%20Revenue) Engineering Services Revenue (For the six months ended June 30) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Growth Rate | | :--- | :--- | :--- | :--- | | Engineering Services Revenue | 21,305.9 | 20,573.3 | 3.6% | [Overview of H1 2025](index=21&type=section&id=Overview%20of%20H1%202025) In H1 2025, the Group faced a complex international environment and domestic structural adjustment pressures, yet China's economy showed stable improvement with new growth drivers emerging. The Group actively responded to challenges through strategies like reform and innovation, lean management, and collaborative cooperation, achieving new progress across all business segments, particularly in green and low-carbon transformation and high-end product development [Development Environment](index=21&type=section&id=Development%20Environment) - In the first half, domestic GDP increased by **5.3%** YoY, fixed asset investment grew by **2.8%** YoY, with infrastructure investment showing a stable **4.6%** increase, while real estate development investment decreased by **11.2%** YoY[43](index=43&type=chunk) - Artificial intelligence is leading a new round of technological revolution and industrial transformation, bringing new development opportunities and challenges for the company's sustainable development[43](index=43&type=chunk) [Group's Response Strategy](index=22&type=section&id=Group's%20Response%20Strategy) - The Group continues to expand new growth, optimize existing assets, manage variables, and improve quality, focusing on reform and innovation, lean management, collaborative cooperation, open sharing, integration and optimization, and Party building leadership[44](index=44&type=chunk) [Basic Building Materials Segment Operations](index=22&type=section&id=Basic%20Building%20Materials%20Segment%20Operations) - National cement output was **815 million tons**, the lowest for the same period since 2010, representing a **4.3%** YoY decrease[45](index=45&type=chunk) - In H1 2025, the cement industry's total profit was **RMB16.4 billion**, turning a loss into profit compared to H1 2024[45](index=45&type=chunk) - In the first half, cement clinker costs decreased by **7.4%** YoY, and gross profit margins for both cement clinker and ready-mixed concrete achieved YoY growth, significantly restoring profitability in the basic building materials business[46](index=46&type=chunk) - Actively promoting "Cement+" business, establishing **5** special cement production bases, and advancing Chizhou and Zongyang aggregate projects[46](index=46&type=chunk) - The Tunisia project completed delivery, and Ningxia Building Materials was selected as the sole cement enterprise in the first batch of national carbon footprint label certification pilot units[46](index=46&type=chunk) [New Materials Segment Operations](index=23&type=section&id=New%20Materials%20Segment%20Operations) [Glass Fiber](index=23&type=section&id=Glass%20Fiber) - Glass fiber business achieved both volume and price increases in the first half, with gross profit margin increasing by **11.1 percentage points** YoY[47](index=47&type=chunk) - The second line of Jiujiang intelligent manufacturing base and the first line of Taiyuan base commenced production, while the electronic-grade glass fiber and supporting projects at Huai'an zero-carbon intelligent manufacturing base and the second line of Taiyuan base officially started construction[47](index=47&type=chunk) - Low-expansion fiber cloth broke foreign monopoly, becoming the only domestic and second global supplier capable of mass-producing low-expansion coefficient fiber cloth products[47](index=47&type=chunk) [Gypsum Board](index=24&type=section&id=Gypsum%20Board) - Gypsum board's home decoration board sales volume significantly increased YoY, and cost-saving initiatives led to a **6.2%** YoY decrease in unit cost[50](index=50&type=chunk) - Tanzania and Uzbekistan production bases continued to achieve significant YoY growth in operating revenue and profit[50](index=50&type=chunk) - The **40 million sq.m./year** gypsum board production line in Thailand has entered trial production, and the **40 million sq.m./year** paper-faced gypsum board production line project in Bosnia and Herzegovina is progressing orderly[50](index=50&type=chunk) [Wind Turbine Blades](index=24&type=section&id=Wind%20Turbine%20Blades) - Wind turbine blade business unit cost decreased by **10.7%** YoY[49](index=49&type=chunk) - All **4** production lines at the Brazil base are operational, and the Uzbekistan project is steadily progressing[52](index=52&type=chunk) - The first domestic **220m+** diameter recyclable wind turbine blade developed in cooperation has been installed, and the trial production and development of **16MW** floating unit SI122F blades have been completed, achieving a major breakthrough in deep and far-sea wind power[52](index=52&type=chunk) [Other New Materials Businesses](index=25&type=section&id=Other%20New%20Materials%20Businesses) - Coatings business steadily advanced management integration, with Carpoly's integration progressing well and Zhejiang Daqiao's integration proceeding orderly[52](index=52&type=chunk) - Waterproofing membranes business expanded its layout in civil construction products and repair services, achieving counter-trend growth in operating revenue and profit[52](index=52&type=chunk) - The first overseas project for lithium battery separators, the Hungary base, is steadily progressing, with **5μm** ultra-thin base film achieving mass supply, and ultra-thin high-strength **4μm/3μm** products forming a technical reserve[52](index=52&type=chunk) - Hydrogen energy cylinder business continues to maintain its industry-leading position, with hydrogen storage cylinder market share and vehicle announcement numbers remaining first in the industry[52](index=52&type=chunk) - Carbon fiber business collaborated with leading clients to develop new energy applications, with the Lianyungang **30,000-ton** carbon fiber project progressing orderly, achieving green transformation of the high-performance carbon fiber industry[52](index=52&type=chunk) [Engineering Technical Services Segment Operations](index=26&type=section&id=Engineering%20Technical%20Services%20Segment%20Operations) - Successfully secured **13** overseas cement whole-line projects in the first half, maintaining the world's largest market share in cement engineering services for **17** consecutive years[53](index=53&type=chunk) - Overseas equipment business revenue accounted for **51%**, and non-equipment industry revenue accounted for **37%**[53](index=53&type=chunk) - Formed a "smart factory + digital mine + expert system" full-scenario solution, with **71** cement operation and maintenance service production lines and **312** mine operation and maintenance service projects currently in execution[53](index=53&type=chunk) - New overseas contracts increased by **19%** YoY, and overseas revenue increased by **25%** YoY[53](index=53&type=chunk) [Strategic Development and Corporate Governance](index=27&type=section&id=Strategic%20Development%20and%20Corporate%20Governance) [Deepening Reforms and Technological Innovation](index=27&type=section&id=Deepening%20Reforms%20and%20Technological%20Innovation) The Group comprehensively advanced supervisory board reform, optimized mixed-ownership enterprise governance, and strengthened market value management by repurchasing and canceling H-shares and increasing China Jushi's stake, enhancing shareholder value. Concurrently, innovation and industrial chains deeply integrated, with several new material projects selected for SASAC's "Top 100 Projects," and breakthroughs achieved in green technologies - Completed the tender offer repurchase and cancellation of **840 million** of the company's circulating H-shares, with a total consideration of **HKD3.392 billion**, representing approximately **9.98%** of the company's total share capital before cancellation[54](index=54&type=chunk) - Increased stake in China Jushi by **89.91 million shares** for **RMB1 billion**, raising the shareholding ratio to **29.22%**[54](index=54&type=chunk) - Special glass fiber for AI and carbon fiber and composite materials for large aircraft projects were selected for SASAC's "Top 100 Projects" in strategic emerging industries[55](index=55&type=chunk) - The world's first large-scale coal gangue suspension hot activation calcination process production line was successfully ignited[55](index=55&type=chunk) [Digital Transformation](index=27&type=section&id=Digital%20Transformation) The Group systematically advanced digital transformation, successfully launching **74** systems, bridging the "last mile" for AI implementation in industrial scenarios, optimizing the entire cement production chain, and reducing average cost per ton by **RMB2.03**. **31** smart cement factories, **72** intelligent new material production lines, and **18** digital mines have been built - "One Cloud" smoothly launched **74** systems and completed demand research for overseas institutions on the global "One Network"[56](index=56&type=chunk) - The basic building materials large model has achieved data value-added in over **140** cement production scenarios, reducing average cost per ton by **RMB2.03** in accepted factories[57](index=57&type=chunk) - A total of **31** smart cement factories, **72** intelligent new material production lines, and **18** digital mines have been built[58](index=58&type=chunk) [Green and Low-Carbon Transformation](index=28&type=section&id=Green%20and%20Low-Carbon%20Transformation) The Group comprehensively deepened green production, with a significant increase in the proportion of ultra-low emission and alternative fuel cement production lines, substantial growth in fuel substitution rates and green electricity usage, and continuous decline in energy consumption and emission indicators. Concurrently, it accelerated the implementation of dual carbon goals, with the second phase of Huai'an Zero-Carbon Intelligent Manufacturing Base commencing construction and the Qingzhou Zhonglian CCUS project selected for the national demonstration list - Ultra-low emission cement production lines accounted for **36.59%**, an increase of **14.49 percentage points** from the end of 2024[59](index=59&type=chunk) - Alternative fuel cement production lines accounted for **45%**, an increase of **12 percentage points** from the end of 2024; cement fuel substitution rate reached **5.88%**, an increase of **1.97 percentage points** from the end of 2024[59](index=59&type=chunk) - "PV+" installed capacity increased by **40.36 MW**, with cumulative installed capacity reaching **707.88 MW**, and green electricity usage increased by **359%** YoY[59](index=59&type=chunk) - Comprehensive energy consumption per ton of cement clinker decreased by **3.04%** YoY, and emissions of carbon dioxide, nitrogen oxides, sulfur dioxide, and dust decreased by **4.18%**, **7.34%**, **1.72%**, and **0.9%** YoY, respectively[59](index=59&type=chunk) - The second phase of the electronic-grade glass fiber and supporting projects at Huai'an Zero-Carbon Intelligent Manufacturing Base commenced construction; the Qingzhou Zhonglian CCUS project was selected for the national green and low-carbon advanced technology demonstration list[60](index=60&type=chunk) [Outlook for H2 2025](index=29&type=section&id=Outlook%20for%20H2%202025) The Group anticipates continued economic uncertainty in H2, but sees opportunities in emerging market infrastructure demand, new material applications, and green low-carbon transformation. Focusing on becoming a world-class materials enterprise, the Group will prioritize stable operations, optimized layout, deepened reforms, and value management to consolidate performance recovery, accelerate industrial transformation, and implement its internationalization strategy - Internationally, emerging market infrastructure demand continues to grow, new material application scenarios are expanding, and green and low-carbon transformation is in a critical window period[61](index=61&type=chunk) - Domestically, the foundation for China's economic recovery is strengthening, with overall stable and improving economic performance[61](index=61&type=chunk) - The Group will anchor its annual targets, focusing on accelerating the construction of a world-class materials enterprise, and continue to prioritize stable operations, optimized layout, deepened reforms, and value management[61](index=61&type=chunk) - Accelerate the optimization and upgrading of basic building materials, with cement business focusing on improving profitability, ready-mixed concrete business accelerating layout in key regions, and aggregates business emphasizing improved input-output ratio[61](index=61&type=chunk) - Strategic emerging industries will comprehensively utilize new investments, mergers and acquisitions, industrial funds, and strategic cooperation to improve tiered layout, focus on key products, and accelerate the construction of industrial clusters[61](index=61&type=chunk) [Major Transactions](index=30&type=section&id=Major%20Transactions) In the Group's acquisition of Carpoly shares, Carpoly's actual net profit for FY2024 did not meet the performance target, and the difference of **RMB77,336,936.31** will be deducted as performance compensation from the remaining share acquisition price - Carpoly's actual net profit for FY2024 was **RMB335,663,063.69**, falling short of the promised net profit of **RMB413 million**[63](index=63&type=chunk) - The difference of **RMB77,336,936.31** will be deducted as performance compensation from the remaining share acquisition price that BNBM should pay to the original shareholders for FY2024[63](index=63&type=chunk) [Share Buyback](index=31&type=section&id=Share%20Buyback) For the six months ended June 30, 2025, the company repurchased a total of **841,749,304 H-shares** through a conditional cash offer, at a total cost of **HKD3,392,249,695**, which were canceled on March 12, 2025. This action aims to demonstrate confidence in long-term prospects, improve trading liquidity, and optimize shareholder structure H-Share Buyback Details | Buyback Completion Date | Number of H-Shares Repurchased | Price Paid Per Share (HKD) | Total Consideration Paid (HKD) | | :--- | :--- | :--- | :--- | | March 12, 2025 | 841,749,304 | 4.03 | 3,392,249,695 | - All repurchased shares were canceled on March 12, 2025, representing approximately **9.98%** of the company's total share capital before cancellation and approximately **18.47%** of the issued H-shares[65](index=65&type=chunk) - The Board believes that the share buyback demonstrates the company's confidence in its long-term prospects and intrinsic value, and can improve trading liquidity and update the shareholder structure[65](index=65&type=chunk) [Corporate Governance Code and Board Committees](index=31&type=section&id=Corporate%20Governance%20Code%20and%20Board%20Committees) The company complied with most provisions of the Corporate Governance Code during the reporting period, with exceptions regarding directors' rotation. The Board has established specialized committees, including Strategic Decision, Nomination, Remuneration and Assessment, Audit, and ESG, each performing its duties to ensure effective corporate governance [Board Member Changes](index=31&type=section&id=Board%20Member%20Changes) - The current Board was elected on November 19, 2021, and was due for rotation on November 19, 2024, but due to the implementation of the H-share buyback offer, some directors have not yet rotated[67](index=67&type=chunk) - Several directors, including Mr. Fu Jinguang, Mr. Liu Yan, Mr. Peng Shou, Mr. Xiao Jiaxiang, Ms. Fan Xiaoyan, Mr. Chang Zhangli, and Mr. Li Xinhua, resigned due to work adjustments or retirement[68](index=68&type=chunk) - New directors, including Mr. Liu Yan, Mr. Wei Rushan, Mr. Chen Shaolong, and Ms. Miao Xiaoling, joined the Board[68](index=68&type=chunk) [Strategic Decision Committee](index=32&type=section&id=Strategic%20Decision%20Committee) - The Strategic Decision Committee comprises **three** directors, including **two** executive directors and **one** independent non-executive director[69](index=69&type=chunk) - Responsible for researching and reviewing the company's operating objectives and long-term development strategies, business and organizational development plans, major investment and financing proposals, and other significant matters affecting the company's development[69](index=69&type=chunk) - During the reporting period, it reviewed proposals such as the company's 2025 investment plan, budget, debt financing instrument issuance plan, and credit facility application plan[69](index=69&type=chunk) [Nomination Committee](index=33&type=section&id=Nomination%20Committee) - The Nomination Committee comprises **three** directors, including **one** executive director and **two** independent non-executive directors[70](index=70&type=chunk) - Responsible for formulating the selection procedures and criteria for the company's directors, senior management, and committee members, and reviewing the Board diversity policy[70](index=70&type=chunk) - Board members comply with the diversity policy in terms of gender, age, cultural and educational background, professional experience, and skills, including **two** female members[71](index=71&type=chunk) [Remuneration and Assessment Committee](index=33&type=section&id=Remuneration%20and%20Assessment%20Committee) - The Remuneration and Assessment Committee comprises **three** directors, including **one** executive director and **two** independent non-executive directors[72](index=72&type=chunk) - Responsible for recommending and reviewing the specific remuneration and performance of the company's directors and senior management in accordance with policies set by the Board[72](index=72&type=chunk) - During the reporting period, it reviewed proposals regarding the performance and remuneration of the company's senior management for 2024[72](index=72&type=chunk) [Audit Committee](index=34&type=section&id=Audit%20Committee) - The Audit Committee comprises **three** independent non-executive directors, one of whom possesses appropriate professional qualifications[73](index=73&type=chunk) - Responsible for monitoring the company's external auditors and their work, the company's financial reporting process, internal control systems, risk management, and internal control work[73](index=73&type=chunk) - During the reporting period, it reviewed proposals such as the appointment of auditors for 2025 and the 2025 interim results report[73](index=73&type=chunk) [Environmental, Social and Governance Committee](index=34&type=section&id=Environmental,%20Social%20and%20Governance%20Committee) - The Environmental, Social and Governance Committee comprises **three** directors, including **one** executive director and **two** independent non-executive directors[74](index=74&type=chunk) - Responsible for researching and formulating the company's overall ESG management objectives, strategies, and policies, and regularly assessing the adequacy and effectiveness of the company's ESG framework[74](index=74&type=chunk) - During the reporting period, it reviewed the proposal regarding the company's 2024 ESG report and discussed ESG development trends[74](index=74&type=chunk) [Standard Code and Subsequent Events](index=34&type=section&id=Standard%20Code%20and%20Subsequent%20Events) The company has adopted a code for directors' securities transactions no less stringent than the Model Code and confirmed compliance by all directors and supervisors during the reporting period. As of the announcement date, the Group has no material subsequent events requiring disclosure - The company has adopted a code for directors' securities transactions no less stringent than the Model Code and confirmed compliance by all directors and supervisors during the reporting period[75](index=75&type=chunk) - As of the date of this announcement, the Group has no material subsequent events requiring disclosure for the reporting period[76](index=76&type=chunk) [Definitions](index=35&type=section&id=Definitions) [Glossary of Terms](index=35&type=section&id=Glossary%20of%20Terms) This section provides definitions for key terms and abbreviations used in the report, including company names, business concepts, financial terminology, and regulatory bodies, to ensure clear understanding of the report's content - Provides definitions for key terms such as "China National Building Material," "Board," "Carpoly," "Cement+," "Code," "China Jushi," "Qingzhou Zhonglian," "the Company," "Directors," "Domestic Shares," "the Group," "H Shares," "Listing Rules," "Lean Management," "Model Code," "Ningxia Building Materials," "Parent Company," "Parent Company Group," "PRC" or "China Government," "Reporting Period," "RMB," "SFO," "Shares," "Shareholders," "Stock Exchange," "Supervisor," and "Supervisory Committee"[78](index=78&type=chunk)[79](index=79&type=chunk)[81](index=81&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 公告 (1)持續關連交易及主要交易；及 (2)持續關連交易 獨立董事委員會及獨立股東的獨立財務顧問 本公司與母公司簽訂新母公司框架協議 於二零二五年八月二十八日，本公司與母公司就二零二六年一月一日至二零二八年十 二月三十一日期間本集團與母公司集團進行的持續關連交易簽訂礦石採購總協議、產 品及服務互供總協議、設備互供總協議、工程服務互供總協議及房屋租賃總協議，以 分別續訂原礦石採購總協議、原產品及服務互供總協議、原設備採購總協議、原工程 服務互供總協議及原房屋租賃總協議。 - 1 - 本公司與財務公司簽訂金融服務框架協議 於二零二五年八月二十八日，本公司與財務公司就二零二六年一月一日至二零二八年 十二月三十一日期間本集團與財務公司進行的金融服務持續關連交易簽訂金融服務框 架協議，以續訂原金融服務框架協議。 寧夏建材與賽馬物聯簽訂資金拆借框架協議 於二零二五年八月二十八日，本公司的附屬公司寧夏建材與賽馬物聯 ...

Core Viewpoint - The report evaluates the financial risks associated with China National Building Material Group Finance Co., Ltd., highlighting its operational qualifications, internal control systems, and compliance with regulatory requirements [1][14]. Group 1: Company Overview - China National Building Material Group Finance Co., Ltd. was established on April 23, 2013, as a non-banking financial institution approved by the former China Banking Regulatory Commission [1]. - The company is registered in Beijing with a registered capital of 4.721 billion RMB, where China National Building Material Group holds 77.93% and China National Building Material Co., Ltd. holds 22.07% [1]. Group 2: Business Scope - The financial company engages in various activities, including accepting deposits, providing loans, bill discounting, and offering financial advisory services [2]. Group 3: Internal Control and Risk Management - The financial company has established a comprehensive internal control system, including a board of directors, risk management committee, and audit committee to oversee operations and risk management [2][3]. - The risk management committee is responsible for approving risk management frameworks and monitoring risk control across credit, market, and operational aspects [3]. - The audit committee supervises the implementation of internal audit systems and evaluates the effectiveness of internal controls [4]. Group 4: Financial Performance - As of June 30, 2025, the financial company reported total assets of approximately 32.98 billion RMB and total liabilities of about 27.63 billion RMB, with owner’s equity of around 5.35 billion RMB [10]. - The company achieved a revenue of approximately 355 million RMB and net profit during the first half of 2025 [10]. Group 5: Regulatory Compliance - The financial company meets all regulatory requirements as per the Enterprise Group Financial Company Management Measures, with no significant risks identified [11][12]. - As of June 30, 2025, the company's loan balance does not exceed 80% of the sum of deposits and paid-in capital, and other regulatory indicators are within acceptable limits [12]. Group 6: Risk Assessment - The company has not identified any major deficiencies in the risk control system and has established a risk disposal plan to ensure the safety of deposits [13][14].

Core Viewpoint - The construction of "good houses" is a new direction for building development, requiring good standards, design, materials, and services, emphasizing the importance of "good materials" in the construction process [1]. Group 1: Importance of Good Materials - The complete building materials system in China includes over 1,000 products across 30 sub-industries, making it the largest producer and consumer of building materials [1]. - To transition from scale expansion to high-quality development, there is a need for better collaboration between the construction and materials industries [1]. - "Good materials" are essential for building "good houses," with energy-saving, creative, functional, and smart materials being crucial [1]. Group 2: Trends in Energy-Saving Materials - The development trends for energy-saving materials include high performance, such as aerogel glass with superior insulation and soundproofing properties, and composite materials like graphene heating materials that combine multiple functions [2]. - Biomass materials, derived from natural sources like bamboo and wood, are also emerging as new building materials [2]. Group 3: Innovations in Functional Materials - The core factor for promoting the application of advanced energy-saving materials is the high adaptability of performance to cost [3]. - An example of innovative energy-generating materials is the "power-generating glass," which converts light energy into electrical energy through a thin film of cadmium telluride [3]. - The development of new waterproof and soundproof materials is essential to address common living issues in old housing, with a focus on system integration, functional composites, low carbon emissions, and recycling in future research [3].

Group 1 - The core event is the launch of the sixth "Resource Utilization Day" by China National Building Material Group, focusing on innovation and green empowerment in the construction materials sector [1][2] - The event aims to deepen collaboration with construction enterprises to explore the potential value of new material innovations, continuing the tradition of state-owned enterprise open days [2] - China National Building Material Group emphasizes the integration of technological and industrial innovation, establishing a tiered structure for new materials industries valued at 1 billion to 10 billion to 100 billion [2] Group 2 - The group has applied some of its innovations in key national projects, major infrastructure, and livelihood projects, enhancing construction quality, ensuring safety, and promoting energy conservation and carbon reduction [2] - The event also featured the release of sustainability reports from China National Building Material Group and 25 member enterprises, showcasing the group's commitment to ESG principles [2] - A new brand strategy was announced to inject fresh value into the CNBM brand, aligning with the group's goals of promoting green innovation and shared development [2]

Core Insights - The importance of high-quality materials in both new construction and renovation is emphasized, highlighting their role in supporting innovation and application in the building sector [1] - China is actively promoting the energy-saving transformation of building materials to reduce carbon emissions and enhance operational efficiency in buildings [1] Industry Overview - China has established a comprehensive building materials system, encompassing over 30 sub-industries and more than 1,000 product types, making it the largest producer and consumer of building materials globally [1] - Recent advancements include the widespread application of low-carbon concrete and composite gypsum boards, which have contributed to a reduction in building operational energy consumption by over 60% [1] Future Directions - Despite progress, there remains a gap in achieving zero carbon emissions in the building sector, necessitating further innovation and development of advanced energy-saving materials [1]

Group 1 - The company China National Building Material (03323) announced that its subsidiary, China National Materials International (600970), achieved operating revenue of 21.676 billion RMB for the six months ending June 30, 2025, representing a year-on-year growth of 3.74% [1] - The net profit attributable to shareholders of China National Materials International was 1.42 billion RMB, reflecting a year-on-year increase of 1.56% [1] - The basic earnings per share for the company stood at 0.54 RMB [1]

Core Viewpoint - China National Building Material (03323) announced that its subsidiary, China National Materials International, achieved a revenue of 21.676 billion RMB for the six months ending June 30, 2025, representing a year-on-year growth of 3.74% [1] - The net profit attributable to shareholders of China National Materials International was 1.42 billion RMB, reflecting a year-on-year increase of 1.56% [1] - The basic earnings per share stood at 0.54 RMB [1] Financial Performance - Revenue for the period reached 21.676 billion RMB, with a growth rate of 3.74% compared to the previous year [1] - Net profit attributable to shareholders was reported at 1.42 billion RMB, showing a growth of 1.56% year-on-year [1] - Basic earnings per share were recorded at 0.54 RMB [1]

中國建材股份有限公司（「本公司」）董事會謹請其股東及公眾投資者留意以下中國中材國 際工程股份有限公司（「中材國際」）截至二零二五年六月三十日止六個月之主要會計數據 和財務指標。 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的內容概不負責，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。 公告 中材國際截至二零二五年六月三十日止六個月之 主要會計數據和財務指標 中材國際為本公司之附屬公司，其A股於上海證券交易所上市及買賣（股份代號： 600970）。 - 1 - 中材國際之主要會計數據及財務指標 單位：萬元 幣種：人民幣 本報告期末比 | | 本報告期末 | 上年度末 | 上年度末增減 | | --- | --- | --- | --- | | | | | (%) | | 總資產 | 6,031,017.94 | 5,874,585.71 | 2.66 | | 歸屬於中材國際股東的淨資產 | 2,153,577.54 | 2,111,540.89 | 1.99 | | | | | 本報告期比 | | | 本報告期 ...

Core Insights - The article emphasizes the importance of selecting the right initial market for Chinese companies venturing abroad, highlighting Malaysia as an ideal entry point for construction material enterprises targeting Southeast Asia [1] - Malaysia's strategic position as a hub in Southeast Asia, combined with its membership in RCEP, allows for zero tariffs on products entering multiple countries, making it a competitive choice for Chinese businesses [2] Market Opportunities - The Malaysian government has launched the "13th Malaysia Plan," committing to an investment of 611 billion ringgit (approximately 140 billion USD) from 2026 to 2030, focusing on infrastructure, housing, and green energy, which creates a favorable environment for foreign investment [3] - The establishment of "special tourism investment zones" aims to boost demand for construction materials, decorations, and sanitary products [5] Market Environment - Malaysia's open market environment, characterized by a significant Chinese community (approximately 23% of the population), facilitates business interactions and reduces barriers for Chinese enterprises [5] - The country is experiencing a golden period of infrastructure upgrades, with an annual growth rate of 18% in infrastructure investment, driving demand for tiles, sanitary ware, and other construction materials [6] Market Growth Data - The construction materials market in Malaysia is projected to grow at an annual rate of 6% to 10%, with residential construction accounting for 40% of material consumption [7] - China's exports of construction materials to ASEAN countries are expected to increase from 38 billion RMB in 2020 to 127 billion RMB by 2024, reflecting a compound annual growth rate of 35.6% [6] Product Demand - There is a strong demand for high-quality steel and cement in Malaysia, with local production unable to meet the needs for specialty cement and high-end applications [9] - The smart home market in Malaysia is projected to grow at a compound annual growth rate of 21% from 2021 to 2026, driven by the "smart city" initiative [10] - The Malaysian government aims to reduce greenhouse gas emissions intensity by 45% by 2030, creating a demand for low-carbon construction materials [11] - The multicultural environment in Malaysia has led to a rising demand for customized decorative materials, such as tiles with Chinese patterns and personalized lighting products [12]