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)

Group 1 - The core viewpoint is that the Chinese construction machinery industry is experiencing significant growth, with excavator sales reaching 17,138 units in July 2025, a year-on-year increase of 25.2% [1] - Domestic sales accounted for 7,306 units, reflecting a growth of 17.2%, while exports reached 9,832 units, marking a substantial increase of 31.9% [1] - The government plans to issue 1.3 trillion yuan in ultra-long special bonds, an increase of 300 billion yuan from the previous year, to support infrastructure investment and stimulate demand for construction machinery [1] Group 2 - Zhejiang Securities suggests that the Chinese construction machinery industry is transitioning from import substitution to global supply, recommending a focus on industry leaders [2] - Everbright Securities highlights strong performance in both domestic and export sales in July, indicating a positive outlook for the industry driven by ongoing demand and policy support [2] - The report emphasizes that the internationalization and electrification of the construction machinery sector will likely benefit leading companies, with projects like the Yajiang and Xinjiang railways expected to further boost demand [2] Group 3 - Relevant companies in the Hong Kong stock market include Zoomlion Heavy Industry (000157), SANY International (00631), China Longgong (03339), and Zhengzhou Coal Mining Machinery (00564) [3]

Group 1 - The core viewpoint of the articles highlights the growth in the excavator sales in July 2025, with a total of 17,138 units sold, representing a year-on-year increase of 25.2% [1] - Domestic sales accounted for 7,306 units, showing a year-on-year growth of 17.2%, while exports reached 9,832 units, marking a significant increase of 31.9% [1] - The government plans to issue long-term special bonds amounting to 1.3 trillion yuan, an increase of 300 billion yuan from the previous year, which is expected to support infrastructure investment and subsequently boost equipment demand [1] Group 2 - Zheshang Securities reports that the Chinese construction machinery industry is a global advantage and is expected to transition from import substitution to global supply [2] - The report indicates that domestic demand for construction machinery is expected to improve marginally, with projects like the Yajiang and Xinjiang-Tibet railways driving new demand [2] - Everbright Securities notes that both domestic sales and exports of construction machinery performed well in July, with ongoing support from government policies ensuring sustained recovery in mid-term demand [2] Group 3 - Relevant companies in the construction machinery sector listed on the Hong Kong Stock Exchange include Zoomlion Heavy Industry (01157), SANY International (00631), China Longgong (03339), and Zhengzhou Coal Mining Machinery Group (00564) [3]

Group 1 - Heavy machinery stocks in Hong Kong have generally risen, with Zoomlion up approximately 4%, China Longgong up over 2%, and Sany International up over 1% [1] - In July 2025, a total of 17,138 excavators were sold, representing a year-on-year increase of 25.2%. Domestic sales accounted for 7,306 units, up 17.2%, while exports reached 9,832 units, up 31.9% [1] - From January to July 2025, a total of 137,700 excavators were sold, marking a year-on-year growth of 17.8%. The excavator operating rate in July was reported at 56.7% [1] Group 2 - Analysts suggest that the 17.2% growth in excavator sales indicates a phase of recovery in the industry. The increase in domestic sales reflects a revival in investment activities in infrastructure and real estate, likely linked to accelerated issuance of special government bonds, the commencement of new infrastructure projects, and the implementation of "stabilizing growth" policies [1] - Leading companies such as Sany Heavy Industry and XCMG are expected to capture market share more easily due to their channel and product advantages, with gross margins likely to improve as a result of scale effects [1]

Group 1 - Heavy machinery stocks in Hong Kong have generally risen, with Zoomlion up approximately 4%, China Longgong up over 2%, and Sany International up over 1% [1] - In July 2025, a total of 17,138 excavators were sold, representing a year-on-year increase of 25.2%. Domestic sales accounted for 7,306 units, up 17.2%, while exports reached 9,832 units, up 31.9% [1] - From January to July 2025, a total of 137,700 excavators were sold, marking a year-on-year growth of 17.8%. The monthly operating rate for excavators in July was reported at 56.7% by the China Construction Machinery Industry Association [1] Group 2 - Analysts suggest that the 17.2% growth in excavator sales indicates a phase of recovery in the industry. The increase in domestic sales reflects a revival in investment activities in downstream sectors such as infrastructure and real estate, likely linked to the accelerated issuance of special government bonds, the commencement of new infrastructure projects, and the implementation of "stabilizing growth" policies [1] - Leading companies like Sany Heavy Industry and XCMG are expected to capture market share more easily due to their channel and product advantages, with gross margins likely to improve as a result of economies of scale [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7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 中國龍工控股有限公司 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 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 ...

Group 1 - The article provides a list of companies listed on the Hong Kong stock market along with their dividend distribution dates and shareholder meeting dates [1][4][5] - Notable companies mentioned include China Railway, Green Town China, and Budweiser APAC, which are scheduled for dividend payments [4][5] - The document outlines various companies' actions regarding capital increases and dividend distributions, indicating ongoing corporate activities in the market [4][5]

Market Overview - On July 22, the Hang Seng Index rose by 0.54%, closing at 25,130.03 points, with a total net inflow of HKD 2.717 billion through the southbound trading channel [1] - The total trading volume for the southbound trading was HKD 162.832 billion, with a net buy of HKD 2.717 billion [1] Southbound Trading Details - In the Shanghai-Hong Kong Stock Connect, the trading volume was HKD 103.231 billion with a net buy of HKD 2.985 billion, while the Shenzhen-Hong Kong Stock Connect had a trading volume of HKD 59.600 billion with a net sell of HKD 0.267 billion [1] - The top active stocks in the Shanghai-Hong Kong Stock Connect included Dongfang Electric with a trading volume of HKD 4.374 billion, followed by Huaxin Cement and Tencent Holdings with trading volumes of HKD 3.489 billion and HKD 2.647 billion, respectively [1] Stock Performance - China Life had the highest net buy amount of HKD 0.879 billion, with a closing price increase of 4.23% [1] - Semiconductor Manufacturing International Corporation (SMIC) recorded the highest net sell amount of HKD 0.267 billion, with a closing price increase of 2.75% [1] Shenzhen-Hong Kong Stock Connect Highlights - In the Shenzhen-Hong Kong Stock Connect, SMIC led in trading volume with HKD 1.979 billion, followed by Meituan and Alibaba with trading volumes of HKD 1.833 billion and HKD 1.739 billion, respectively [2] - SMIC also had the highest net buy amount of HKD 0.779 billion, while Tencent Holdings had the highest net sell amount of HKD 0.373 billion, with a closing price increase of 0.86% [2] Active Stocks Summary - The top active stocks in the southbound trading on July 22 included: - Dongfang Electric: Trading volume of HKD 4.374 billion, net buy of HKD 0.165 billion, price change of -2.84% [2] - Huaxin Cement: Trading volume of HKD 3.489 billion, net buy of HKD 0.313 billion, price change of -15.05% [2] - Tencent Holdings: Trading volume of HKD 2.647 billion, net buy of HKD 0.027 billion, price change of 0.86% [2] - SMIC: Trading volume of HKD 2.590 billion, net sell of HKD 0.267 billion, price change of 2.75% [2] - China Life: Trading volume of HKD 1.919 billion, net buy of HKD 0.879 billion, price change of 4.23% [2]