Core Viewpoint - The engineering machinery industry continues its recovery in the first half of 2025, driven by domestic demand from long-term government bond issuance, deepening equipment renewal policies, and accelerated energy transition. Core products such as excavators, concrete machinery, and cranes have seen comprehensive growth in domestic sales, while overseas markets remain robust, particularly in mineral development and energy infrastructure [1]. Company Performance Summary XCMG Machinery - Achieved operating revenue of 54.808 billion yuan, a year-on-year increase of 8.04%, and a net profit of 4.358 billion yuan, up 16.63%. The company shows a favorable development trend with growth in revenue, net profit, and cash flow, driven by internationalization, new energy, and aftermarket services [2][3]. - The earthmoving segment saw a revenue increase of 22.37%, making it the largest revenue segment, accounting for 31.05% of total revenue. Domestic sales share increased, with export revenue growing by 20% and aftermarket revenue up by 29% [3]. SANY Heavy Industry - Reported revenue of 44.534 billion yuan, a 14.96% increase, and a net profit of 5.216 billion yuan, up 46%. The excavator segment generated 17.497 billion yuan in sales, a 15% increase, maintaining the top position in the domestic market [5]. - Concrete machinery sales decreased by 6.49% to 7.441 billion yuan, while crane machinery sales increased by 17.89% to 7.804 billion yuan, with significant market share gains in various crane categories [6][7]. Zoomlion Heavy Industry - Recorded revenue of 24.855 billion yuan, a 1.3% increase, and a net profit of 2.765 billion yuan, up 20.84%. The crane segment accounted for 33.69% of total revenue, with earthmoving machinery exports growing over 33% [8]. LiuGong Machinery - Achieved revenue of 18.181 billion yuan, a 13.21% increase, and a net profit of 1.230 billion yuan, up 25.05%. The earthmoving machinery segment contributed 64.09% of total revenue, with both domestic and overseas markets showing strong growth [9]. Shantui - Reported revenue of 7.004 billion yuan, an 8.78% increase, with overseas revenue growing by 7.66% compared to the previous year [10]. Zhejiang Dingli - Achieved operating revenue of 4.336 billion yuan, a 12.35% increase, and a net profit of 1.052 billion yuan, up 27.63%. The company has shown resilience in a complex external environment [10]. Anhui Heli - Reported revenue of 9.390 billion yuan, a 6.18% increase, but net profit decreased by 4.60% to 0.796 billion yuan. Overseas revenue reached 4.016 billion yuan, up 15.20%, accounting for 43% of total revenue [11]. Market Dynamics - The engineering machinery industry is gradually improving, with domestic markets recovering and exports maintaining stable growth. Companies are actively seizing opportunities to enhance quality and efficiency while expanding their market presence [9][10].

Group 1 - The core point of the article is that Ni Yinying increased his stake in China Longgong (03339) by acquiring 21.3 million shares at an average price of HKD 2.6951 per share, totaling approximately HKD 57.41 million [1] - After the acquisition, Ni Yinying's total shareholding in China Longgong reached approximately 2.42 billion shares, representing a 56.53% ownership stake [1] - The transaction involved other related parties, specifically Li Xinyan [1]

Group 1 - The core point of the article is that Ni Yinying increased his stake in China Longgong (03339) by acquiring 21.3 million shares at an average price of HKD 2.6951 per share, totaling approximately HKD 57.41 million [1] - After the acquisition, the total number of shares held by Ni Yinying is approximately 2.42 billion, representing a holding percentage of 56.53% [1] - The transaction also involves other related parties, specifically Li Xinyan [1]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 03339 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 20,000,000,000 | HKD | | 0.1 | HKD | | 2,000,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 20,000,000,000 | HKD | | 0.1 | HKD | | 2,000,000,000 | 本月底法定/註冊股本總額： HKD 2,000,000,000 第 1 頁 共 10 頁 v 1.1.1 致：香港交易及結算所有限 ...

Group 1 - Nongfu Spring (09633) reported a 22% year-on-year increase in net profit for the six months ending June 30, 2025, with packaged drinking water revenue growing by 10.7% [1] - Gu Ming (01364) saw a more than 120% year-on-year increase in net profit for the same period, with steady expansion in store count and impressive GMV performance [1] - China Longgong (03339) reported a 37.83% year-on-year increase in net profit, with the loader business being the largest contributor to revenue and profit [1] - AI concept stocks generally rose, with SenseTime (00020) up over 11% and Fourth Paradigm (06682) up over 9%, following the State Council's release of opinions on implementing "AI+" actions [1] - Cao Cao Mobility (02643) reported a 53.5% year-on-year increase in net profit, with gross margin improving from 7.0% to 8.4% [1] Group 2 - H&H International Holdings (01112) experienced a nearly 77% year-on-year decrease in net profit and proposed an interim dividend of HKD 0.19 per share [2] - NIO (09866) saw its stock price rise over 6% this month, benefiting from strong orders for the Onvo L90 and ES8 SUV models [2] - Chip stocks continued their upward trend, with SMIC (00981) up over 6% and Huahong Semiconductor (01347) up over 3%, as institutions remain optimistic about the domestic chip market [2] - Beike (02423) reported a 7.2% year-on-year decrease in net profit for the mid-year results, with Nomura indicating that its third-quarter guidance was below expectations [2] Group 3 - Gaotu (GOTU.US) reported a more than 37% year-on-year increase in revenue for Q2, alongside a new stock buyback plan worth up to USD 100 million [3] - NIO (NIO.US) rose 10.02% as Morgan Stanley highlighted strong orders for the ES8 and a shift in market sentiment towards next year's models [3] - XPeng Motors (XPEV.US) increased by 5.46% as it announced the official launch of the new P7 model on August 27 [3] - Boeing (BA.US) rose 3.51% after Korean Air announced a purchase order for aircraft valued at approximately USD 36.5 billion [4]

Core Viewpoint - China Longgong (03339) experienced a significant stock price increase of over 8%, with a current rise of 7.94% to HKD 2.99, and a trading volume of HKD 43.1991 million [1] Financial Performance - For the six months ending June 30, 2025, the company reported revenue of RMB 5.596 billion, representing a year-on-year increase of 69.67% [1] - Shareholders' profit attributable to the company was RMB 632 million, an increase of 37.83% compared to the previous year [1] - Basic earnings per share were reported at RMB 0.15 [1] Business Segment Contribution - The loader business, as the company's flagship product, continued to be the largest contributor to both revenue and profit, accounting for 41.12% of total sales, an increase of 0.81 percentage points from 40.31% in the same period of 2024 [1]

消息面上，中国龙工发布截至2025年6月30日止六个月的中期业绩，收益55.96亿元(人民币，下同)，同 比增加69.67%；股东应占溢利6.32亿元，同比增加37.83%；每股基本盈利0.15元。公告称，作为拳头产 品的装载机业务继续保持了集团营收和利润的最大贡献，其销售额占集团整体销售额比重为41.12%， 较2024年同期的40.31%上升了0.81个百分点。 智通财经APP获悉，中国龙工(03339)涨超8%，截至发稿，涨7.94%，报2.99港元，成交额4319.91万港 元。 ...

Group 1 - The company reported a revenue of 5.596 billion RMB for the six months ending June 30, 2025, representing a year-on-year increase of 69.67% [1] - Shareholder profit reached 632 million RMB, an increase of 37.83% compared to the previous year, with basic earnings per share at 0.15 RMB [1] - The loader business remains the largest contributor to the company's revenue and profit, accounting for 41.12% of total sales, up from 40.31% in the same period of 2024 [1] Group 2 - The sales of excavators saw a significant year-on-year growth of 59.58%, with sales accounting for 14.44% of total sales, an increase of 4.99 percentage points from 9.45% in 2024 [1] - The company experienced varied regional performance, with the northwest region achieving a sales growth of 22.3%, increasing its market share from 7.01% to 8.58% [1] - The south region showed moderate growth of 3.6%, raising its market share to 9.57% [1] Group 3 - The wheeled loader segment remains the core business unit, with total revenue increasing by 6.5% to 2.301 billion RMB, driven by strong demand for high-end and mini wheeled loaders [2] - Revenue from the flagship model ZL50 slightly declined by 3.9% due to weak export sales, while the contribution from mini and ZL40 models significantly increased [2] - The gross margin for the wheeled loader segment improved to 20.6%, reflecting better product mix and cost control [2]

Core Insights - China Longgong (03339) reported a mid-term performance for the six months ending June 30, 2025, with revenue of 5.596 billion RMB, a year-on-year increase of 69.67% [1] - Shareholder profit reached 632 million RMB, up 37.83% year-on-year, with basic earnings per share at 0.15 RMB [1] Business Segment Performance - The loader business remains the core segment, contributing 41.12% to total sales, an increase of 0.81 percentage points from 40.31% in the same period of 2024 [1] - Forklift sales decreased by 4.79 percentage points to 33.61% compared to the same period in 2024 [1] - Excavator sales surged by 59.58% year-on-year, accounting for 14.44% of total sales, up 4.99 percentage points from 9.45% in 2024 [1] Regional Performance - The Northwest region saw a 22.3% year-on-year sales growth, with market share increasing from 7.01% to 8.58% [1] - The Central region achieved an 8.9% sales growth, reaching a market share of 10.29% [1] - The Southern region experienced moderate growth of 3.6%, raising its market share to 9.57% [1] Wheel Loader Segment - The wheel loader segment's total revenue grew by 6.5% to 2.301 billion RMB, driven by strong demand for high-end (ZL60 model) and mini wheel loaders, which saw revenue increases of 27.7% and 7.9% respectively [2] - Revenue from the flagship ZL50 model slightly declined by 3.9% due to weak export sales [2] - The overall segment benefited from a diversified product mix, with the contribution from mini and ZL40 models significantly increasing, while the gross margin improved to 20.6% due to better product mix and cost control [2]

[Interim Condensed Consolidated Income Statement](index=1&type=section&id=Interim%20Condensed%20Consolidated%20Income%20Statement) This statement presents the Group's financial performance for the six months ended June 30, 2025, showing a significant increase in profit for the period Interim Condensed Consolidated Income Statement for the Six Months Ended June 30 | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | Change (RMB'000) | YoY Growth/Decline | | :--- | :--- | :--- | :--- | :--- | | Revenue | 5,596,064 | 5,360,093 | 235,971 | 4.40% | | Cost of Sales | (4,461,306) | (4,370,634) | (90,672) | 2.07% | | Gross Profit | 1,134,758 | 989,459 | 145,299 | 14.68% | | Other Income | 58,510 | 63,775 | (5,265) | -8.26% | | Other Gains and Losses | 108,665 | 42,877 | 65,788 | 153.44% | | Selling and Distribution Expenses | (239,975) | (226,948) | (13,027) | 5.74% | | Administrative Expenses | (125,143) | (125,540) | 397 | -0.32% | | Impairment Loss on Financial Assets, Net | (9,899) | 22,454 | (32,353) | -144.08% | | Research and Development Expenses | (240,273) | (221,722) | (18,551) | 8.37% | | Other Expenses | (2,756) | (733) | (2,023) | 276.00% | | Finance Income | 53,167 | 66,780 | (13,613) | -20.39% | | Finance Costs | (1,391) | (19,349) | 17,958 | -92.81% | | Profit Before Tax | 735,663 | 591,053 | 144,610 | 24.47% | | Income Tax Expense | (103,828) | (132,545) | 28,717 | -21.67% | | Profit for the Period | 631,835 | 458,508 | 173,327 | 37.80% | | Profit for the Period Attributable to Owners of the Parent | 631,728 | 458,353 | 173,375 | 37.83% | | Basic and Diluted EPS (RMB) | 0.15 | 0.11 | 0.04 | 36.36% | [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) This statement details the Group's total comprehensive income for the six months ended June 30, 2025, including profit and other comprehensive income components Interim Condensed Consolidated Statement of Comprehensive Income for the Six Months Ended June 30 | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | Change (RMB'000) | YoY Growth/Decline | | :--- | :--- | :--- | :--- | :--- | | Profit for the Period | 631,835 | 458,508 | 173,327 | 37.80% | | Other Comprehensive Income (Exchange Differences) | (6,353) | 2,713 | (9,066) | -334.10% | | Total Comprehensive Income for the Period | 625,482 | 461,221 | 164,261 | 35.61% | | Total Comprehensive Income for the Period Attributable to Owners of the Parent | 625,375 | 461,066 | 164,309 | 35.64% | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement provides a snapshot of the Group's assets, liabilities, and equity as of June 30, 2025, highlighting changes from the prior year-end Interim Condensed Consolidated Statement of Financial Position as of June 30 | Indicator | June 30, 2025 (RMB'000) | Dec 31, 2024 (RMB'000) | Change (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Non-current Assets** | | | | | | Property, Plant and Equipment | 1,662,760 | 1,760,226 | (97,466) | -5.54% | | Long-term Receivables | 373,578 | 191,772 | 181,806 | 94.80% | | Financial Assets at FVTPL | 676,005 | 594,138 | 81,867 | 13.78% | | Fixed Deposits | 500,755 | – | 500,755 | N/A | | Total Non-current Assets | 3,683,115 | 3,011,628 | 671,487 | 22.30% | | **Current Assets** | | | | | | Inventories | 2,264,751 | 2,287,310 | (22,559) | -0.99% | | Trade Receivables | 2,601,896 | 2,377,319 | 224,577 | 9.45% | | Financial Assets at FVTPL | 1,766,067 | 3,659,338 | (1,893,271) | -51.73% | | Cash and Cash Equivalents | 3,954,377 | 1,218,049 | 2,736,328 | 224.65% | | Total Current Assets | 12,833,296 | 12,463,367 | 369,929 | 2.97% | | **Current Liabilities** | | | | | | Trade and Bills Payables | 4,034,753 | 3,744,900 | 289,853 | 7.74% | | Dividends Payable to Shareholders | 507,421 | – | 507,421 | N/A | | Total Current Liabilities | 5,613,552 | 4,712,868 | 900,684 | 19.11% | | Net Current Assets | 7,219,744 | 7,750,499 | (530,755) | -6.85% | | Total Assets Less Current Liabilities | 10,902,859 | 10,762,127 | 140,732 | 1.31% | | **Non-current Liabilities** | | | | | | Deferred Tax Liabilities | 44,749 | 14,404 | 30,345 | 210.67% | | Total Non-current Liabilities | 86,798 | 58,034 | 28,764 | 49.56% | | Net Assets | 10,816,061 | 10,704,093 | 111,968 | 1.05% | | **Equity** | | | | | | Equity Attributable to Owners of the Parent | 10,813,201 | 10,701,340 | 111,861 | 1.05% | | Total Equity | 10,816,061 | 10,704,093 | 111,968 | 1.05% | [Notes to the Interim Condensed Consolidated Financial Information](index=6&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) These notes provide detailed explanations and disclosures supporting the interim condensed consolidated financial statements [1. Company Information](index=6&type=section&id=1.%20Company%20Information) The Group's primary business involves manufacturing and distributing construction machinery, with financing lease services, and is ultimately controlled by Ms. Ni Yinying - The Group's principal activities are manufacturing and distributing wheel loaders, forklifts, excavators, road rollers, and other construction machinery, along with providing finance lease services[9](index=9&type=chunk) - The ultimate controlling party of the Company is Ms. Ni Yinying, a non-executive director[9](index=9&type=chunk) [2. Basis of Preparation and Changes in the Group’s Accounting Policies](index=6&type=section&id=2.%20Basis%20of%20Preparation%20and%20Changes%20in%20the%20Group%E2%80%99s%20Accounting%20Policies) The interim condensed consolidated financial information is prepared under HKAS 34, with no significant impact from newly adopted HKFRS amendments - The interim condensed consolidated financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA[10](index=10&type=chunk) - The accounting policies adopted are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended December 31, 2024, except for the initial adoption of revised HKFRS accounting standards for the current period's financial information[11](index=11&type=chunk) - The adoption of the revised HKFRS has no significant impact on the preparation and presentation of the results and financial position for the current and prior periods[13](index=13&type=chunk) [3. Revenue from Contracts with Customers](index=7&type=section&id=3.%20Revenue%20from%20Contracts%20with%20Customers) Revenue is primarily from sales of construction machinery, recognized at a point in time, with approximately 18% of sales denominated in non-functional currencies - The Group's revenue from contracts with customers primarily consists of sales of wheel loaders, forklifts, excavators, road rollers, and other construction machinery[14](index=14&type=chunk) - Revenue is recognized when control of the goods is transferred at a point in time[15](index=15&type=chunk) - Approximately **18%** (2024: 12%) of the Group's sales are denominated in currencies other than the functional currency of the operating unit making the sale[15](index=15&type=chunk) [4. Operating Segment Information](index=7&type=section&id=4.%20Operating%20Segment%20Information) The Group operates in engineering machinery sales, finance leasing, and financial investments, with engineering machinery sales as the main revenue driver Operating Segment Revenue and Results (for the Six Months Ended June 30) | Segment | 2025 Revenue (RMB'000) | 2025 Results (RMB'000) | 2024 Revenue (RMB'000) | 2024 Results (RMB'000) | | :--- | :--- | :--- | :--- | :--- | | Sales of Construction Machinery | 5,596,064 | 582,869 | 5,360,093 | 511,766 | | Finance Lease | – | (17) | – | – | | Financial Investment | – | 102,817 | – | 50,561 | | Total | 5,596,064 | 685,669 | 5,360,093 | 562,327 | Revenue from External Customers (by Geographical Region) | Region | June 30, 2025 (RMB'000) | June 30, 2024 (RMB'000) | YoY Change | | :--- | :--- | :--- | :--- | | Mainland China | 3,962,590 | 3,892,804 | 1.79% | | Outside Mainland China | 1,633,474 | 1,467,289 | 11.32% | | Total Revenue | 5,596,064 | 5,360,093 | 4.40% | Analysis of Construction Machinery Sales by Product (for the Six Months Ended June 30) | Product | 2025 Sales (RMB'000) | 2025 Share (%) | 2024 Sales (RMB'000) | 2024 Share (%) | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Wheel Loaders | 2,300,997 | 41.2 | 2,160,912 | 40.4 | 6.48% | | Forklifts | 1,880,612 | 33.6 | 2,058,326 | 38.4 | -8.53% | | Excavators | 807,919 | 14.4 | 506,277 | 9.4 | 59.58% | | Parts | 578,355 | 10.3 | 615,986 | 11.5 | -6.19% | | Road Rollers | 28,181 | 0.5 | 18,592 | 0.3 | 51.57% | | Subtotal | 5,596,064 | 100.0 | 5,360,093 | 100.0 | 4.40% | - The Group's operating activities are not seasonal[21](index=21&type=chunk) [5. Other Income and Other Gains and Losses](index=10&type=section&id=5.%20Other%20Income%20and%20Other%20Gains%20and%20Losses) Other income totaled RMB 58.5 million, while other gains and losses significantly increased by 153.44% due to fair value gains on financial assets Analysis of Other Income (for the Six Months Ended June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | YoY Change | | :--- | :--- | :--- | :--- | | Government Grants | 23,888 | 19,214 | 24.32% | | VAT Surcharge Deductions | 21,023 | 40,253 | -47.80% | | Scrap Sales Income | 11,245 | 2,494 | 350.80% | | Total | 58,510 | 63,775 | -8.26% | Analysis of Other Gains and Losses (for the Six Months Ended June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | YoY Change | | :--- | :--- | :--- | :--- | | (Loss)/Gain on Disposal of Property, Plant and Equipment | (1,364) | 87 | -1667.82% | | Fair Value Gains on Financial Assets at FVTPL, Net | 128,913 | (4,065) | -3279.83% | | Fair Value Gains on Derivative Instruments, Net | (32,393) | 36,023 | -189.92% | | Exchange Gains/(Losses) | 6,798 | (12,201) | -155.72% | | Total | 108,665 | 42,877 | 153.44% | [6. Profit Before Tax](index=11&type=section&id=6.%20Profit%20Before%20Tax) Profit before tax increased by 24.47% to RMB 735.7 million, influenced by higher cost of inventories sold, increased staff costs, and significant changes in financial asset fair value gains and finance costs Key Deductions/(Credits) from Profit Before Tax (for the Six Months Ended June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | YoY Change | | :--- | :--- | :--- | :--- | | Cost of Inventories Sold | 4,211,845 | 3,794,684 | 10.99% | | Depreciation of Property, Plant and Equipment | 118,270 | 127,475 | -7.22% | | Staff Costs, Including Directors' Emoluments | 342,976 | 316,785 | 8.26% | | Impairment of Financial Assets, Net | 9,899 | (22,454) | -144.08% | | Fair Value Gains on Financial Assets at FVTPL, Net | (128,913) | 4,065 | -3279.83% | | Fair Value Gains on Derivative Instruments, Net | 32,393 | (36,023) | -189.92% | | Interest Income from Bank Fixed Deposits | (17,557) | (39,058) | -55.05% | | Government Grants Related to Income | (23,888) | (19,214) | 24.32% | [7. Income Tax Expense](index=12&type=section&id=7.%20Income%20Tax%20Expense) Income tax expense decreased by 21.67% to RMB 103.8 million, primarily due to lower current income tax despite increased profit before tax Major Components of Income Tax Expense (for the Six Months Ended June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | YoY Change | | :--- | :--- | :--- | :--- | | Current Income Tax Expense | 86,242 | 120,870 | -28.65% | | Deferred Income Tax Expense | 17,586 | 11,675 | 50.63% | | Income Tax Expense Recognized in Consolidated Income Statement | 103,828 | 132,545 | -21.67% | - The decrease in income tax expense was primarily due to lower current income tax expense, even with an increase in profit before tax, indicating effective utilization of tax incentives and deductions[57](index=57&type=chunk) [8. Earnings Per Share and Dividends Payable to Shareholders](index=12&type=section&id=8.%20Earnings%20Per%20Share%20and%20Dividends%20Payable%20to%20Shareholders) Basic earnings per share increased to RMB 0.15, with no interim dividend proposed for the period, while a final dividend for 2024 was paid Earnings Per Share (for the Six Months Ended June 30) | Indicator | 2025 (RMB) | 2024 (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Basic and Diluted EPS | 0.15 | 0.11 | 36.36% | - The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: nil)[26](index=26&type=chunk) - The proposed final dividend of **HKD 0.13 per ordinary share** for the year ended December 31, 2024, was paid on July 31, 2025[26](index=26&type=chunk) [9. Property, Plant and Equipment](index=12&type=section&id=9.%20Property%2C%20Plant%20and%20Equipment) Acquisitions of property, plant, and equipment decreased by 19.45% to RMB 28.8 million, while asset disposals resulted in a net loss of RMB 1.36 million Changes in Property, Plant and Equipment (for the Six Months Ended June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | YoY Change | | :--- | :--- | :--- | :--- | | Cost of Assets Purchased | 28,821 | 35,782 | -19.45% | | Net Book Value of Assets Disposed | 7,743 | 6,391 | 21.16% | | Net Loss on Disposal | 1,364 | 87 | 1467.82% | [10. Inventories](index=13&type=section&id=10.%20Inventories) Total inventories slightly decreased by 0.99% to RMB 2,264.8 million as of June 30, 2025, with finished goods being the largest component Inventory Composition (as of June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Raw Materials | 818,273 | 795,288 | 2.90% | | Work in Progress | 165,770 | 195,937 | -15.40% | | Finished Goods | 1,280,708 | 1,296,085 | -1.19% | | Total | 2,264,751 | 2,287,310 | -0.99% | [11. Trade Receivables](index=13&type=section&id=11.%20Trade%20Receivables) Trade receivables increased by 15.82% to RMB 2,975.5 million, with the majority due within three months, and credit terms ranging from 6 to 36 months - The Group provides credit terms of **6 to 36 months** to its trade customers, with longer terms granted to certain customers with good credit records and relationships[29](index=29&type=chunk) Ageing Analysis of Trade Receivables (as of June 30) | Ageing | 2025 (RMB'000) | 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Within 3 Months | 1,767,952 | 1,292,871 | 36.75% | | 3 to 6 Months | 570,256 | 591,051 | -3.52% | | 6 Months to 1 Year | 394,426 | 462,892 | -14.79% | | Over 1 Year | 242,840 | 222,277 | 9.25% | | Total | 2,975,474 | 2,569,091 | 15.82% | [12. Prepayments, Deposits and Other Receivables](index=14&type=section&id=12.%20Prepayments%2C%20Deposits%20and%20Other%20Receivables) Prepayments, deposits, and other receivables decreased by 8.77% to RMB 475.6 million, with net loans receivable at RMB 6.5 million and other sundry receivables at RMB 174.7 million Composition of Prepayments, Deposits and Other Receivables (as of June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Prepayments | 226,115 | 231,724 | -2.42% | | Recoverable VAT | 65,652 | 77,529 | -15.32% | | Deposits | 2,627 | 5,735 | -54.19% | | Loans Receivable, Net | 6,505 | 6,563 | -0.88% | | Other Sundry Receivables, Net | 174,749 | 199,812 | -12.54% | | Total | 475,648 | 521,363 | -8.77% | - Loans receivable from sales agents are for machine repurchases, with unsatisfactory recovery of lease financing sales receivables due to deteriorating external operating environment; the Group provides loans to assist agents in repaying repurchase amounts and enters into installment agreements after machine resale[33](index=33&type=chunk) [13. Cash and Cash Equivalents, Fixed Deposits and Pledged Deposits](index=15&type=section&id=13.%20Cash%20and%20Cash%20Equivalents%2C%20Fixed%20Deposits%20and%20Pledged%20Deposits) Cash and bank balances significantly increased by 224.65% to RMB 3,954.4 million, while total fixed and pledged deposits slightly decreased Composition of Cash and Deposits (as of June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 3,954,377 | 1,218,049 | 224.65% | | Fixed and Pledged Deposits | 1,555,866 | 1,658,048 | -6.16% | | Total | 5,510,243 | 2,876,097 | 91.59% | - Certificates of deposit are purchased from reputable licensed banks in Mainland China, with maturities ranging from over **2 years** to over **3 years**[34](index=34&type=chunk) [14. Trade and Bills Payables](index=15&type=section&id=14.%20Trade%20and%20Bills%20Payables) Trade and bills payables increased by 7.74% to RMB 4,034.8 million, with the majority due within six months and bills secured by pledged bank deposits Ageing Analysis of Trade and Bills Payables (as of June 30) | Ageing | 2025 (RMB'000) | 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Within 6 Months | 3,954,594 | 3,673,021 | 7.66% | | 6 Months to 1 Year | 25,154 | 16,609 | 51.45% | | 1 to 2 Years | 9,613 | 13,605 | -29.34% | | 2 to 3 Years | 6,602 | 6,320 | 4.46% | | Over 3 Years | 38,790 | 35,345 | 9.75% | | Total | 4,034,753 | 3,744,900 | 7.74% | - Bills payable at each reporting period end have an ageing of **within six months** and are secured by pledged bank deposits of **RMB 297,517 thousands**[35](index=35&type=chunk) [15. Other Payables and Accruals](index=16&type=section&id=15.%20Other%20Payables%20and%20Accruals) Other payables and accruals increased by 7.10% to RMB 858.6 million, primarily driven by accrued sales commissions and contract liabilities Composition of Other Payables and Accruals (as of June 30) | Item | 2025 (RMB'000) | 2024 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Accrued Sales Commissions | 309,706 | 298,178 | 3.87% | | Wages and Salaries Payable | 106,851 | 142,479 | -25.00% | | Contract Liabilities | 123,132 | 91,474 | 34.61% | | VAT and Other Taxes Payable | 105,265 | 80,359 | 31.01% | | Total | 858,564 | 801,633 | 7.10% | [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's operational and financial performance, strategic initiatives, and future outlook [Results and Business Review](index=17&type=section&id=Results%20and%20Business%20Review) The Group achieved a 4.40% revenue growth and 37.80% net profit increase in H1 2025, driven by export business and improved gross profit margin - In the first half of 2025, China's economy maintained overall stability, with steady progress and positive momentum, achieving a GDP growth of **5.3%**[37](index=37&type=chunk) - The Group achieved total revenue of **RMB 5,596 million**, representing a year-on-year increase of **4.40%**[38](index=38&type=chunk) - Net profit was **RMB 632 million**, a year-on-year increase of **37.80%**, primarily attributable to steady growth in export sales volume and improved consolidated gross profit margin[38](index=38&type=chunk) Changes in Sales Contribution by Major Product | Product | 2025 Share (%) | 2024 Share (%) | Change (Percentage Points) | | :--- | :--- | :--- | :--- | | Loaders | 41.12 | 40.31 | +0.81 | | Forklifts | 33.61 | 38.40 | -4.79 | | Excavators | 14.44 | 9.45 | +4.99 | - The consolidated gross profit margin was **20.28%**, an increase of **1.82 percentage points** from **18.46%** in the same period of 2024[38](index=38&type=chunk) [Regional Performance](index=17&type=section&id=Regional%20Performance) Northwest and Central China regions showed growth, while the export market demonstrated strong 11.3% growth, becoming the largest sales segment - Sales in the Northwest region increased by **22.3%** year-on-year, with market share rising to **8.58%**[39](index=39&type=chunk) - The export market performed strongly, growing by **11.3%** and accounting for **29.19%** of total revenue, becoming the Company's largest sales segment[39](index=39&type=chunk) - Sales in the Northern region recorded a **2.8%** decrease, while the Southwest region saw a **6.4%** reduction in sales, with the Eastern and Northeastern regions also experiencing declines in sales and market share[40](index=40&type=chunk) - Future investments should focus on high-growth regions and further expanding international markets, optimizing product sales strategies based on regional market demand characteristics[40](index=40&type=chunk) [Product Analysis](index=18&type=section&id=Product%20Analysis) The Group optimized its product structure, with wheel loaders remaining core, excavators showing significant growth, and forklifts experiencing a slight decline - Total revenue from wheel loaders increased by **6.5%** year-on-year to **RMB 2,301 million**, with gross profit margin improving to **20.6%**[42](index=42&type=chunk) - Forklift sales reached **RMB 1,881 million**, accounting for **33.6%** of total revenue, with a slight decrease of **8.5%** in revenue and a gross profit margin of **18.7%**[43](index=43&type=chunk) - Excavator business revenue surged by **59.6%** to **RMB 808 million**, with overseas markets contributing **70.9%** of revenue and a gross profit margin of **27.1%**[44](index=44&type=chunk) - Road rollers generated revenue of **RMB 28 million**, with export revenue accounting for **75.9%** and a gross profit margin of **21.7%**[45](index=45&type=chunk) - Parts sales decreased by **6.2%** to **RMB 578 million**, representing **10.3%** of total revenue[46](index=46&type=chunk) [Financial Review](index=19&type=section&id=Financial%20Review) The Group maintained a robust financial position with a 224.6% increase in cash, improved gross profit margin, and significant changes in other gains and losses - Cash and bank balances significantly increased by **224.6%** to **RMB 3,954 million**, primarily due to strong operating performance, effective cost management, and efficient working capital practices[48](index=48&type=chunk) - Total shareholders' funds were approximately **RMB 10,816 million**, an increase of **1.05%** compared to December 31, 2024[49](index=49&type=chunk) - The current ratio was **2.29** (December 31, 2024: 2.64)[50](index=50&type=chunk) - The total asset-liability ratio was approximately **34.5%** (December 31, 2024: 30.8%)[51](index=51&type=chunk) - Gross profit significantly increased by **14.7%**, with the gross profit margin rising from **18.5%** to **20.3%**, an improvement of **1.8 percentage points**[53](index=53&type=chunk) - Other gains and losses significantly increased by **153.3%** to approximately **RMB 109 million** compared to the same period in 2024, primarily due to substantial growth in fair value gains on financial assets[54](index=54&type=chunk) - Impairment loss on financial assets significantly increased by **144.1%** to approximately **RMB 9.9 million** compared to the same period in 2024, mainly due to bad debt provisions for certain dealer receivables[55](index=55&type=chunk) - Finance costs significantly decreased by **92.8%** to **RMB 1,391,000**, primarily due to strategic debt repayment and enhanced cash flow management[56](index=56&type=chunk) - Income tax expense significantly decreased by **21.7%** to **RMB 103,828,000**, mainly due to a reduction in current income tax expense[57](index=57&type=chunk) - Research and development costs significantly increased by **8.4%** to **RMB 240,273,000**, demonstrating the company's strategic commitment to innovation and product development[58](index=58&type=chunk) [Outlook](index=22&type=section&id=Outlook) The Group anticipates continued stable economic growth in H2 2025, leveraging domestic replacement demand and overseas market expansion for core product development - China's economy is expected to maintain stable and positive development in the second half of 2025, with government macro policies and "Two New" policies supporting the recovery of the construction machinery market[59](index=59&type=chunk) - The domestic market has accumulated substantial demand for equipment replacement, while the overseas construction machinery market remains in an expansion phase, maintaining growth momentum in export sales[59](index=59&type=chunk) - The Group will focus on refining and optimizing its four main product categories—loaders, forklifts, excavators, and road machinery—along with core components in the extended product manufacturing chain, leveraging its advantages in "quality, service, and cost-effectiveness" to expand market share[59](index=59&type=chunk) [Corporate Governance](index=22&type=section&id=Corporate%20Governance) The company adheres to the Corporate Governance Code, with some deviations noted regarding director liability insurance and attendance at general meetings [Compliance with Corporate Governance Code](index=22&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company generally complies with the Corporate Governance Code, with deviations including lack of director liability insurance and some independent non-executive directors' absence from AGM - The Company has adopted and complied with the principles and applicable code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules of the Stock Exchange for the six months ended June 30, 2025, except for certain deviations outlined below[60](index=60&type=chunk) - Code Provision C.1.7: The Company has not yet arranged for directors' liability insurance for legal actions, as reasonably priced and adequately covered directors' liability insurance is unavailable in the market[61](index=61&type=chunk) - Code Provision C.1.5: Three independent non-executive directors and one non-executive director were unable to attend the 2025 Annual General Meeting[62](index=62&type=chunk) - Code Provision C.2.1: Mr. Li Xinyan serves concurrently as both the Chairman of the Board and the Chief Executive Officer of the Group, which the Board believes helps maintain policy continuity and business stability[65](index=65&type=chunk) [Re-election of Independent Non-Executive Directors](index=23&type=section&id=Re-election%20of%20Independent%20Non-Executive%20Directors) Dr. Qian Shizheng and Mr. Wu Jianming were re-elected as independent non-executive directors despite serving over nine years, with their independence affirmed by the Board - Dr. Qian Shizheng and Mr. Wu Jianming have each served as independent non-executive directors for over nine years, and their re-election required approval by shareholders through a separate resolution[63](index=63&type=chunk) - The Board believes that despite Dr. Qian and Mr. Wu having served the Company for over nine years, they maintain their independence in accordance with the Listing Rules[64](index=64&type=chunk) - At the Company's Annual General Meeting held on May 28, 2025, the separate resolutions for the re-election of retiring directors Dr. Qian and Mr. Wu as independent non-executive directors were approved by shareholders' votes[64](index=64&type=chunk) [Compliance with Model Code for Securities Transactions by Directors](index=24&type=section&id=Compliance%20with%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) All directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers during the period - Following specific inquiries to all Directors, each Director confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules during the year[66](index=66&type=chunk) [Review of Interim Results](index=24&type=section&id=Review%20of%20Interim%20Results) The Audit Committee and external auditor, Ernst & Young, reviewed the interim results for the six months ended June 30, 2025, confirming consistency with the unaudited financial information - The Audit Committee, together with management, has continuously reviewed the accounting principles and practices adopted by the Group, and discussed and reviewed the Group's financial results concerning review, internal controls, and financial reporting matters[67](index=67&type=chunk) - The interim results for the six months ended June 30, 2025, have been reviewed by the Company's external auditor, Ernst & Young, and reconciled with the amounts presented in the unaudited interim condensed consolidated financial information[67](index=67&type=chunk) [Other Information](index=24&type=section&id=Other%20Information) This section covers disclosures regarding the company's listed securities, dividend policy, and publication of financial information [Purchase, Sale or Redemption of the Company’s Listed Securities](index=24&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%E2%80%99s%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities during the six months ended June 30, 2025 - During the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's shares or any other listed securities[68](index=68&type=chunk) [Dividends](index=25&type=section&id=Dividends) The Board does not recommend an interim dividend for the six months ended June 30, 2025 - The Directors do not recommend the payment of any interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: nil)[69](index=69&type=chunk) [Publication of Financial Information](index=25&type=section&id=Publication%20of%20Financial%20Information) The 2025 interim report for the six months ended June 30, 2025, will be dispatched to shareholders and published on the HKEX website - The Company's 2025 interim report for the six months ended June 30, 2025, will be dispatched to shareholders in due course and will also be published on the HKEX website (www.hkex.com.hk)[70](index=70&type=chunk)