[Summary](index=1&type=section&id=Summary) This section provides a concise overview of the company's key financial performance for the first half of 2025, highlighting revenue, profit, and earnings per share trends 2025 First Half Key Financial Data | Indicator | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 571.6 | 632.7 | -9.7% | | Gross Profit | 126.6 | 120.5 | +5.0% | | Profit Before Tax | 48.4 | 38.2 | +26.7% | | Profit and Total Comprehensive Income Attributable to Owners of the Company | 42.0 | 32.5 | +29.3% | | Earnings Per Share (RMB cents) | 8.4 | 6.26 | +34.2% | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the company's financial performance, including revenue, costs, and profit for the six months ended June 30 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Six Months Ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 571,583 | 632,707 | | Cost of Sales and Services | (445,011) | (512,194) | | Gross Profit | 126,572 | 120,513 | | Other Income | 11,846 | 15,413 | | Other Gains and Losses | 3,744 | 1,718 | | Selling and Distribution Expenses | (45,871) | (38,234) | | Administrative Expenses | (27,388) | (24,630) | | Research Expenses | (18,836) | (37,250) | | Impairment Losses on Trade and Other Receivables and Contract Assets, Net of Reversals | (1,648) | 974 | | Finance Costs | (8) | (297) | | Profit Before Tax | 48,411 | 38,207 | | Income Tax Expense | (6,413) | (5,720) | | Profit and Total Comprehensive Income for the Period | 41,998 | 32,487 | | Profit and Total Comprehensive Income for the Period Attributable to Owners of the Company | 41,991 | 31,301 | | Basic Earnings Per Share (RMB cents) | 8.40 | 6.26 | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement provides a snapshot of the company's assets, liabilities, and equity as of June 30, 2025, compared to December 31, 2024 Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Trade Receivables | 38,188 | 93,645 | | Property, Plant and Equipment | 345,637 | 363,228 | | Investment Properties | 6,955 | 7,479 | | Intangible Assets | 567 | 231 | | Right-of-use Assets | 43,824 | 44,258 | | Fixed Deposits | 115,000 | 60,000 | | Deferred Tax Assets | 23,925 | 25,805 | | Deposits Paid for Purchase of Property, Plant and Equipment | 4,263 | 4,190 | | **Total Non-current Assets** | **578,361** | **598,836** | | **Current Assets** | | | | Inventories | 777,938 | 728,620 | | Trade Receivables, Bills Receivable and Other Receivables | 355,099 | 383,809 | | Contract Assets | 25,673 | 41,727 | | Contract Costs | 16,506 | 17,115 | | Recoverable Value Added Tax | 570 | 8,248 | | Prepayments to Suppliers | 69,313 | 86,460 | | Financial Assets at Fair Value Through Profit or Loss | 8,587 | 109,318 | | Fixed Deposits | 168,980 | 98,000 | | Restricted Bank Deposits | 71,646 | 121,782 | | Bank Balances and Cash | 633,676 | 506,443 | | **Total Current Assets** | **2,127,988** | **2,101,522** | | **Current Liabilities** | | | | Trade Payables, Bills Payable and Other Payables | 499,352 | 628,042 | | Contract Liabilities | 1,157,856 | 1,051,915 | | Dividends Payable | 20,185 | – | | Tax Payable | 18,360 | 28,383 | | Bank Borrowings | 300 | 200 | | Deferred Income | 2,751 | 2,659 | | **Total Current Liabilities** | **1,698,804** | **1,711,199** | | **Net Current Assets** | **429,184** | **390,323** | | **Total Assets Less Current Liabilities** | **1,007,545** | **989,159** | | **Total Equity** | **956,641** | **936,215** | | **Non-current Liabilities** | | | | Deferred Income | 43,603 | 46,445 | | Bank Borrowings | – | – | | Deferred Tax Liabilities | 7,301 | 6,499 | | **Total Non-current Liabilities** | **50,904** | **52,944** | [Notes to the Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements, covering accounting policies and specific financial items [1. Company Information](index=5&type=section&id=1.%20Company%20Information) China Pengfei Group Co., Ltd. was incorporated in the Cayman Islands in 2017, listed on HKEX in 2019, and primarily engages in equipment manufacturing and production line services - The company was incorporated in the Cayman Islands on July 31, 2017, and listed on the Main Board of the Stock Exchange on November 15, 2019[10](index=10&type=chunk) - Its principal activities include the production and sale of complete sets of equipment (rotary kiln systems, grinding equipment systems, and related components), production line construction, and installation services[10](index=10&type=chunk) - The condensed consolidated financial statements are presented in RMB[11](index=11&type=chunk) [2. Basis of Preparation](index=5&type=section&id=2.%20Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with IAS 34 and the disclosure requirements of Appendix D2 of the Listing Rules - The financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of Appendix D2 of the Listing Rules[12](index=12&type=chunk) [3. Significant Accounting Policies](index=5&type=section&id=3.%20Significant%20Accounting%20Policies) The financial statements are primarily prepared on a historical cost basis, with no significant impact from newly adopted IFRS amendments - The condensed consolidated financial statements are prepared on a historical cost basis, except for financial assets at fair value through profit or loss[13](index=13&type=chunk) - The revised International Financial Reporting Standards (IFRS) accounting standards, such as the amendments to IAS 21 "Lack of Exchangeability," adopted for the first time in this interim period, have not had a significant impact on the Group's financial position and performance for the current and prior periods[13](index=13&type=chunk)[14](index=14&type=chunk) [4. Revenue and Segment Information](index=6&type=section&id=4.%20Revenue%20and%20Segment%20Information) Total revenue for the period was RMB 571.6 million, with equipment manufacturing as the main source, while production line construction and installation services saw significant growth, and overseas markets contributed more - Revenue refers to amounts received and receivable from the sale of equipment, production line construction, and the provision of installation services, net of sales-related taxes[15](index=15&type=chunk) Revenue Sources (Six Months Ended June 30) | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Sale of Equipment | 428,778 | 535,964 | | Revenue from Production Line Construction | 129,712 | 94,438 | | Installation Services | 13,093 | 2,305 | | **Total** | **571,583** | **632,707** | Geographical Revenue (Six Months Ended June 30) | Geographical Region | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 401,038 | 501,362 | | Uzbekistan | 31,400 | 94,438 | | Republic of Kenya | 53,282 | – | | Republic of Ghana | 40,611 | – | | Republic of Turkey | 15,368 | – | | Republic of Burundi | – | 27,161 | | Other Countries | 29,884 | 9,746 | | **Total** | **571,583** | **632,707** | [5. Profit Before Tax](index=7&type=section&id=5.%20Profit%20Before%20Tax) Profit before tax for the period was RMB 48.4 million, influenced by depreciation, inventory capitalization, and impairment losses on receivables Components of Profit Before Tax (Six Months Ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 17,671 | 17,297 | | Depreciation of Investment Properties | 524 | 529 | | Amortisation of Intangible Assets | 52 | 21 | | Depreciation of Right-of-use Assets | 442 | 461 | | **Total Depreciation and Amortisation** | **18,689** | **18,308** | | Capitalisation of Inventories | (11,838) | (15,116) | | Total Depreciation and Amortisation Deducted from Profit or Loss | 6,851 | 3,192 | | Impairment Losses on Trade Receivables, Net of Reversals | 3,221 | (2,610) | | Impairment Losses on Other Receivables, Net of Reversals | (92) | 251 | | Impairment Losses on Contract Assets, Net of Reversals | (1,481) | 3,333 | | **Net Impairment Losses** | **1,648** | **974** | [6. Income Tax Expense](index=7&type=section&id=6.%20Income%20Tax%20Expense) Income tax expense increased to RMB 6.4 million, with an effective tax rate of 13.2%, reflecting preferential tax rates for high-tech enterprises in mainland China Income Tax Expense (Six Months Ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | China Corporate Income Tax | 3,731 | 4,111 | | Deferred Tax Expense | 2,682 | 1,609 | | **Total Income Tax Expense** | **6,413** | **5,720** | - For the six months ended June 30, 2025, the effective tax rate was **13.2%** (2024: 15.0%)[48](index=48&type=chunk) - Jiangsu Pengfei Group Co., Ltd., as a high-tech enterprise, enjoys a preferential tax rate of **15%** until November 5, 2027; other Chinese subsidiaries are subject to a **25%** tax rate[20](index=20&type=chunk) [7. Dividends](index=8&type=section&id=7.%20Dividends) The company declared a final dividend for 2024 but the board resolved not to declare an interim dividend for the six months ended June 30, 2025 Dividend Distribution | Dividend Type | Six Months Ended June 30, 2025 (RMB) | Six Months Ended June 30, 2024 (RMB) | | :--- | :--- | :--- | | 2024 Final Dividend (per ordinary share) | 0.04375 | 0.0857 | | Total 2024 Final Dividend | 21,875,000 | 42,850,000 | - The Board of Directors has resolved not to declare a dividend for the six months ended June 30, 2025[22](index=22&type=chunk) [8. Earnings Per Share](index=8&type=section&id=8.%20Earnings%20Per%20Share) Basic earnings per share attributable to owners increased to RMB 8.40 cents for the six months ended June 30, 2025, with no diluted EPS presented due to absence of potential ordinary shares Earnings Per Share Calculation (Six Months Ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Company (RMB thousand) | 41,991 | 31,301 | | Number of Ordinary Shares (thousand shares) | 500,000 | 500,000 | | Basic Earnings Per Share (RMB cents) | 8.40 | 6.26 | - Diluted earnings per share is not presented as there were no potential ordinary shares in issue for the six months ended June 30, 2024 and 2025[23](index=23&type=chunk) [9. Trade and Other Receivables and Bills Receivable](index=9&type=section&id=9.%20Trade%20and%20Other%20Receivables%20and%20Bills%20Receivable) Total trade and other receivables and bills receivable decreased by 17.6% to RMB 393.3 million, primarily due to a reduction in bills receivable, with non-current trade receivables linked to a deferred payment project in Kazakhstan Trade and Other Receivables and Bills Receivable (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables (net of impairment allowance) | 216,485 | 244,616 | | Bills Receivable | 166,674 | 218,415 | | Other Receivables and Prepayments (net of impairment allowance) | 10,130 | 14,423 | | **Total** | **393,289** | **477,454** | - Non-current trade receivables primarily represent the outstanding balance of RMB **38,190,000** (net of impairment allowance of RMB **3,864,000**) related to a production line construction for a customer in the Republic of Kazakhstan, with payment deferred due to extended bank approval procedures, accruing interest at a fixed annual rate of **8.41%**, and secured by a corporate guarantee, equity pledge, and a pledge over the cement plant under construction[24](index=24&type=chunk)[25](index=25&type=chunk) Ageing Analysis of Trade Receivables (Net of Impairment Allowance, As of June 30) | Ageing of Trade Receivables | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 1 year | 108,792 | 115,572 | | 1 to 2 years | 53,784 | 26,387 | | Over 2 years | 53,909 | 102,657 | | **Total** | **216,485** | **244,616** | Ageing Analysis of Bills Receivable (By Issue Date, As of June 30) | Ageing of Bills Receivable | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 180 days | 166,674 | 215,193 | | 181 days to 1 year | – | 3,222 | | **Total** | **166,674** | **218,415** | [10. Trade and Other Payables and Bills Payable](index=11&type=section&id=10.%20Trade%20and%20Other%20Payables%20and%20Bills%20Payable) Total trade and other payables and bills payable decreased by 20.5% to RMB 499.4 million, mainly driven by reductions in trade payables and bills payable Trade and Other Payables and Bills Payable (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Payables | 351,747 | 407,298 | | Bills Payable | 79,590 | 142,965 | | Other Taxes Payable | 13,249 | 9,123 | | Amounts Payable to Independent Third Parties | 1,003 | 1,019 | | Accrued Expenses | 1,096 | 3,306 | | Accrued Salaries and Benefits | 9,948 | 20,987 | | Unpaid Incremental Commissions | 39,043 | 39,888 | | Lease Liabilities | 268 | 264 | | Other Payables | 3,408 | 3,192 | | **Total** | **499,352** | **628,042** | Ageing Analysis of Trade Payables (By Invoice Date, As of June 30) | Ageing of Trade Payables | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 1 year | 265,942 | 228,187 | | 1 to 2 years | 18,311 | 137,662 | | Over 2 years | 67,494 | 41,449 | | **Total** | **351,747** | **407,298** | Ageing Analysis of Bills Payable (By Issue/Maturity Date, As of June 30) | Ageing of Bills Payable | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 180 days | 79,590 | 142,965 | [Management Discussion and Analysis](index=13&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the company's operational performance, financial results, and future outlook, along with key risks and uncertainties [Business Review](index=13&type=section&id=Business%20Review) The company diversified its business by targeting non-building materials sectors and 'Belt and Road' markets, while investing in R&D and participating in national standard setting [Expanding Customer Base](index=13&type=section&id=Expanding%20Customer%20Base) The company maintained stable revenue from building materials clients while increasing the proportion of equipment manufacturing revenue from non-building materials sectors - For the six months ended June 30, 2025, revenue from building materials industry customers was approximately **RMB 208.9 million**, a slight increase from approximately RMB 203.9 million in the same period last year[34](index=34&type=chunk) - The proportion of equipment manufacturing revenue from non-building materials industry customers increased from approximately **79.7%** in the same period of 2024 to approximately **81.9%** in 2025[34](index=34&type=chunk) - Over **80%** of rotary kilns are used in emerging industries such as laterite nickel ore, new energy lithium batteries, environmental sludge, and solid waste treatment[34](index=34&type=chunk) [Belt and Road Initiative Countries](index=13&type=section&id=Belt%20and%20Road%20Initiative%20Countries) The company continues to expand its business into potential 'Belt and Road' markets, despite a decrease in revenue contribution from these regions in the current period - The company continues its efforts to expand its business into potential markets along the "Belt and Road" Initiative countries such as Uzbekistan, Kuwait, Turkey, and Sri Lanka[35](index=35&type=chunk) - The proportion of revenue from "Belt and Road" countries decreased from approximately **20.8%** in the same period of 2024 to approximately **11.1%** in 2025[35](index=35&type=chunk) - As of June 30, 2025, the company has one production line project underway in a "Belt and Road" country[35](index=35&type=chunk) [Research and Development and Standard Setting](index=14&type=section&id=Research%20and%20Development%20and%20Standard%20Setting) The company invests in R&D for energy-saving and environmental protection technologies, collaborates with academic institutions, and participates in national standard formulation, holding numerous patents - The company invests in R&D focused on energy-saving and environmental protection technologies, collaborating with Chinese universities and research institutions, such as with Nantong Institute of Technology on "Research and Development of Complete Sets of Equipment for Efficient Preparation of Battery-Grade Lithium Carbonate from Low-Grade Spodumene"[36](index=36&type=chunk) - For the six months ended June 30, 2025, the company participated in the formulation of two national standards, including "Technical Requirements for New Dry Process Cement Production Complete Equipment Part 3: Cement Preparation System"[36](index=36&type=chunk) - As of June 30, 2025, the company holds **174** authorized patents, of which **103** are invention patents, with an additional **100** invention patent applications awaiting approval[36](index=36&type=chunk) [Outlook](index=14&type=section&id=Outlook) The company anticipates continued government stimulus and 'Belt and Road' investments, focusing on quality, innovation, internationalization, and smart applications to become a leading high-end equipment group - The Chinese government is expected to continue implementing economic stimulus policies and encouraging overseas infrastructure investment in "Belt and Road" countries, and the company will continue to leverage the "Belt and Road" Initiative and actively explore related production line construction opportunities[37](index=37&type=chunk) - Global economic growth is expected to slow in the second half of the year, and US tariff policies will impact the company's overseas production line and grinding station EP/EPC businesses; domestic "anti-involution" measures are expected to contribute to increased demand in the building materials industry[37](index=37&type=chunk) - The company will focus on six key areas: improving quality and efficiency for stable growth, promoting high-quality development of equipment manufacturing, strengthening technology-driven innovation, advancing high-quality international operations, accelerating intelligent application development, and successfully completing the reform and enhancement initiative[37](index=37&type=chunk) [Financial Review](index=15&type=section&id=Financial%20Review) Total revenue decreased by 9.7% to RMB 571.6 million, primarily due to equipment manufacturing decline, but gross profit margin improved to 22.1%, and profit attributable to owners increased by 29.3% to RMB 42.0 million [Revenue](index=15&type=section&id=Revenue) Total revenue decreased by 9.7% to RMB 571.6 million, with equipment manufacturing declining while installation services and production line construction saw significant growth Revenue Composition (Six Months Ended June 30) | Business Line | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Equipment Manufacturing | 428,778 | 535,964 | -20.0% | | Installation Services | 13,093 | 2,305 | +468.0% | | Production Line Construction | 129,712 | 94,438 | +37.4% | | **Total** | **571,583** | **632,707** | **-9.7%** | - The decrease in equipment manufacturing revenue was primarily due to reduced sales of grinding equipment systems[39](index=39&type=chunk) - The increase in installation services revenue was mainly due to increased demand for installation services from equipment manufacturing customers[39](index=39&type=chunk) - The increase in production line construction revenue was primarily due to three new production lines[39](index=39&type=chunk) [Cost of Sales and Services](index=15&type=section&id=Cost%20of%20Sales%20and%20Services) Cost of sales and services decreased by 13.1% to RMB 445.0 million, mainly due to lower raw material costs, leading to an improved gross profit margin of 22.1% - Cost of sales and services decreased by **13.1%** (approximately RMB **67.2 million**) to **RMB 445.0 million**[40](index=40&type=chunk) - Raw material costs, as the largest component, decreased by approximately **RMB 61.3 million**[40](index=40&type=chunk) - Gross profit increased by **5.0%** to **RMB 126.6 million**, with the gross profit margin improving from **19.0%** to **22.1%**[41](index=41&type=chunk) [Other Income](index=16&type=section&id=Other%20Income) Other income decreased by 23.1% to RMB 11.8 million, primarily due to reductions in interest income and government grants - Other income decreased by **23.1%** (approximately RMB **3.6 million**) to **RMB 11.8 million**[42](index=42&type=chunk) - The decrease was mainly due to lower interest income and government grants[42](index=42&type=chunk) [Other Gains and Losses](index=16&type=section&id=Other%20Gains%20and%20Losses) Other gains increased by 117.9% to RMB 3.7 million, mainly driven by higher net gains from the disposal of financial assets - Other gains increased by **117.9%** (approximately RMB **2.0 million**) to **RMB 3.7 million**[43](index=43&type=chunk) - The increase was mainly due to higher net gains from the disposal of financial assets[43](index=43&type=chunk) [Selling and Distribution Expenses](index=16&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses increased by 20.0% to RMB 45.9 million, primarily due to higher commissions and port charges - Selling and distribution expenses increased by **20.0%** (approximately RMB **7.6 million**) to **RMB 45.9 million**[44](index=44&type=chunk) - The increase was mainly due to higher commissions and port charges[44](index=44&type=chunk) [Administrative Expenses](index=16&type=section&id=Administrative%20Expenses) Administrative expenses increased by 11.2% to RMB 27.4 million, mainly attributable to higher staff salaries - Administrative expenses increased by **11.2%** (approximately RMB **2.8 million**) to **RMB 27.4 million**[45](index=45&type=chunk) - The increase was mainly due to higher staff salaries[45](index=45&type=chunk) [Research Expenses](index=16&type=section&id=Research%20Expenses) Research expenses decreased significantly by 49.4% to RMB 18.8 million, primarily due to reduced R&D costs for environmental production technology equipment - Research expenses decreased by **49.4%** (approximately RMB **18.4 million**) to **RMB 18.8 million**[46](index=46&type=chunk) - The decrease was mainly due to reduced research and development expenses for environmental production technology-related equipment[46](index=46&type=chunk) [Impairment Losses on Trade and Other Receivables and Contract Assets, Net of Reversals](index=17&type=section&id=Impairment%20Losses%20on%20Trade%20and%20Other%20Receivables%20and%20Contract%20Assets%2C%20Net%20of%20Reversals) Impairment losses increased by 269.2% to RMB 1.6 million, primarily due to an increase in long-aged outstanding trade receivables - Impairment losses increased by **269.2%** from a reversal of approximately RMB **1.0 million** in the same period of 2024 to a loss of approximately RMB **1.6 million** in the same period of 2025[47](index=47&type=chunk) - The increase was mainly due to an increase in long-aged outstanding trade receivables[47](index=47&type=chunk) [Income Tax Expense](index=17&type=section&id=Income%20Tax%20Expense) Income tax expense increased by 12.1% to RMB 6.4 million, while the effective tax rate decreased to 13.2% - Income tax expense increased by **12.1%** (approximately RMB **0.7 million**) to **RMB 6.4 million**[48](index=48&type=chunk) - The effective tax rate decreased from **15.0%** in the same period of 2024 to **13.2%** in the same period of 2025[48](index=48&type=chunk) [Profit and Total Comprehensive Income for the Period](index=17&type=section&id=Profit%20and%20Total%20Comprehensive%20Income%20for%20the%20Period) Profit and total comprehensive income attributable to owners increased by 29.3% to RMB 42.0 million - Profit and total comprehensive income for the period attributable to owners of the Company increased by **29.3%** (approximately RMB **9.5 million**) to **RMB 42.0 million**[49](index=49&type=chunk) [Working Capital Management](index=17&type=section&id=Working%20Capital%20Management) The company maintained sufficient working capital, with net current assets increasing to RMB 429.2 million and a current ratio of 125.3%, despite increased inventory and trade receivables turnover days - Net current assets were approximately **RMB 429.2 million** (December 31, 2024: RMB 390.3 million), and the current ratio improved to **125.3%** (December 31, 2024: 122.8%)[50](index=50&type=chunk) - Inventories increased by **6.8%** to **RMB 777.9 million**, and inventory turnover days increased to **304 days** (2024: 263 days), mainly due to increased domestic sales orders but decreased sales volume[50](index=50&type=chunk) - Trade receivables, bills receivable, and other receivables decreased by **17.6%** to **RMB 393.3 million**, with bills receivable decreasing by **23.7%**; trade receivables turnover days increased to **79 days** (2024: 34 days), mainly due to decreased sales volume[51](index=51&type=chunk) - Contract liabilities increased by **10.1%** to **RMB 1,157.9 million**, primarily due to prepayments received from customers for new and ongoing contracts[52](index=52&type=chunk) [Liquidity, Financial and Capital Resources](index=19&type=section&id=Liquidity%2C%20Financial%20and%20Capital%20Resources) The company's liquidity is supported by operating cash flow and bank financing, with cash and cash equivalents increasing to RMB 702.7 million and an improved gearing ratio of 183% - As of June 30, 2025, cash and cash equivalents were approximately **RMB 702.7 million** (December 31, 2024: approximately RMB 555.4 million)[53](index=53&type=chunk) - Total bank facilities amounted to approximately **RMB 1,330 million**, of which approximately **RMB 251.7 million** was utilized (including bank guarantees, bank acceptance bills, and loans), leaving unutilized facilities of approximately **RMB 1,078.3 million**[54](index=54&type=chunk) - The gearing ratio decreased from **188.8%** as of December 31, 2024, to **183%** as of June 30, 2025, mainly due to an increase in the equity balance[54](index=54&type=chunk) Cash Flow (Six Months Ended June 30) | Cash Flow | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Net Cash From Operating Activities | 103.0 | 150.7 | | Net Cash Used in Investing Activities | (94.7) | (38.5) | | Net Cash Used in Financing Activities | (1.3) | (36.7) | [Principal Risks and Uncertainties](index=20&type=section&id=Principal%20Risks%20and%20Uncertainties) The company faces market risks (currency, interest rate), credit risk, and liquidity risk, with credit risk concentrated in production line construction clients and managed through credit limits and recovery procedures [Financial Risks](index=20&type=section&id=Financial%20Risks) The Group is exposed to market risks arising from changes in market interest rates and prices, including currency, interest rate, credit, and liquidity risks - The Group is exposed to market risks arising from changes in market interest rates and prices, including currency, interest rate, credit, and liquidity risks[56](index=56&type=chunk) [Currency Risk](index=20&type=section&id=Currency%20Risk) Currency risk primarily relates to USD-denominated sales to non-mainland China customers, which management considers insignificant, thus no hedging policies are adopted - Currency risk primarily relates to USD-denominated sales to customers outside mainland China[57](index=57&type=chunk) - Management considers foreign exchange risk to be insignificant and has not adopted any foreign exchange hedging policies or held derivative financial instruments[57](index=57&type=chunk) [Interest Rate Risk](index=20&type=section&id=Interest%20Rate%20Risk) Interest rate risk is associated with bank borrowings, lease liabilities, and bank balances, with management continuously monitoring and considering hedging if necessary - Interest rate risk is primarily associated with bank borrowings, lease liabilities, loans to independent third parties, amounts payable to independent third parties, and floating-rate restricted bank balances and bank balances[58](index=58&type=chunk) - The company currently has no formal interest rate hedging policy, but management continuously monitors the risk and will consider hedging if necessary[58](index=58&type=chunk) [Credit Risk](index=20&type=section&id=Credit%20Risk) Credit risk is concentrated in trade receivables from production line construction clients, managed through credit limits, approval processes, and overdue debt recovery procedures - Credit risk primarily arises from trade receivables, bills receivable and other receivables, contract assets, restricted bank deposits, and bank balances[59](index=59&type=chunk) - Credit risk is concentrated, with **40%** of total trade receivables due from production line construction customers[59](index=59&type=chunk) - The company mitigates credit risk by assigning teams responsible for credit limits, approval, and overdue debt recovery procedures, and by reviewing the recoverability of receivables to make adequate impairment loss provisions[59](index=59&type=chunk) [Liquidity Risk](index=20&type=section&id=Liquidity%20Risk) The company has not experienced any liquidity shortages and manages liquidity risk by maintaining sufficient cash and cash equivalents - For the six months ended June 30, 2025, the company did not experience any liquidity shortages[60](index=60&type=chunk) - The company manages liquidity risk by maintaining sufficient cash and cash equivalents[60](index=60&type=chunk) [Contingent Liabilities](index=20&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the company had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[61](index=61&type=chunk) [Capital Expenditure](index=21&type=section&id=Capital%20Expenditure) Capital expenditure for the six months ended June 30, 2025, was approximately RMB 0.5 million, primarily for the purchase of property, plant, and equipment - For the six months ended June 30, 2025, the Group's capital expenditure was approximately **RMB 0.5 million**[62](index=62&type=chunk) - This was primarily related to the purchase of property, plant, and equipment and associated deposit policies[62](index=62&type=chunk) [Pledge of Assets](index=21&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, restricted bank deposits of approximately RMB 71.6 million were pledged to banks for the issuance of bills payable - As of June 30, 2025, restricted bank deposits of approximately **RMB 71.6 million** were pledged to banks for the issuance of bills payable[63](index=63&type=chunk) [Capital Commitments](index=21&type=section&id=Capital%20Commitments) As of June 30, 2025, capital commitments related to contracted but unprovided for property, plant, and equipment purchases amounted to approximately RMB 3.0 million - As of June 30, 2025, the Group's capital expenditure related to contracted but unprovided for purchases of property, plant, and equipment was approximately **RMB 3.0 million**[64](index=64&type=chunk) [Off-Balance Sheet Transactions](index=21&type=section&id=Off-Balance%20Sheet%20Transactions) The company has not entered into any significant off-balance sheet transactions or arrangements, other than disclosed capital commitments and pledged assets - Other than the disclosed capital commitments and pledged assets, the company has not entered into any significant off-balance sheet transactions or arrangements for the six months ended June 30, 2025, and up to the date of this announcement[65](index=65&type=chunk) [Employees and Remuneration Information](index=21&type=section&id=Employees%20and%20Remuneration%20Information) As of June 30, 2025, the company had 1,003 employees with total staff costs of approximately RMB 62.0 million, maintaining good employee relations and providing regular training - As of June 30, 2025, the Group had **1,003** employees (June 30, 2024: 894 employees)[66](index=66&type=chunk) - For the six months ended June 30, 2025, staff costs (including directors' remuneration) were approximately **RMB 62.0 million** (2024: approximately RMB 57.6 million)[66](index=66&type=chunk) - The company provides regular training covering aspects such as safety production, sales and marketing, laws and regulations, technical skills, management, and production quality[66](index=66&type=chunk) - The company maintains good working relationships with its employees, with no significant labor disputes occurring[66](index=66&type=chunk) [Other Information](index=22&type=section&id=Other%20Information) This section covers additional disclosures including material investments, future plans, post-reporting period events, and compliance with corporate governance standards [Material Investments Held, Material Acquisitions or Disposals](index=22&type=section&id=Material%20Investments%20Held%2C%20Material%20Acquisitions%20or%20Disposals) As of June 30, 2025, the company held financial assets at fair value through profit or loss of RMB 8.6 million, primarily Taikang Kaitai wealth management products, and redeemed some structured deposits, with no other significant investments or disposals - As of June 30, 2025, the company held financial assets at fair value through profit or loss of **RMB 8.6 million** (December 31, 2024: RMB 109.3 million), representing **0.32%** of total assets[67](index=67&type=chunk) Financial Assets at Fair Value Through Profit or Loss (As of June 30) | Financial Asset | Subscription Date | Interest Rate (per annum) | Maturity Date | Principal Subscribed (HKD thousand) | Fair Value Change for Six Months Ended June 30, 2025 (HKD thousand) | Carrying Amount as of June 30, 2025 (HKD thousand) | Percentage of Group's Total Assets | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Taikang Kaitai Wealth Management Product Class A - HKD - Accumulative, Taikang Kaitai HKD Money Market Fund | July 9, 2024 | Depends on other factors | No fixed term | 9,000 | 338.1 | 9,338.1 | 0.32% | - The company redeemed China Bank linked structured deposit wealth management products in February 2025, with annual interest rates of **2.7891%** and **1.4%** respectively[69](index=69&type=chunk) - Save as disclosed above, for the six months ended June 30, 2025, the company did not hold any material investments or undertake any material acquisitions or disposals of subsidiaries, associates, and joint ventures[68](index=68&type=chunk) [Future Plans for Material Investments and Capital Assets](index=23&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) The company has no future plans for material investments and capital assets other than those disclosed in its prospectus - Save as disclosed in the company's prospectus dated October 31, 2019, the Group has no other future plans for material investments and capital assets as of the date of this announcement[70](index=70&type=chunk) [Events After the Reporting Period](index=23&type=section&id=Events%20After%20the%20Reporting%20Period) After the reporting period, China Heavy Machinery Engineering Co., Ltd. subscribed to a Huatai Global Investment Fund wealth management product for HKD 28 million, with no other significant subsequent events - On August 6, 2025, China Heavy Machinery Engineering Co., Ltd. (an indirect wholly-owned subsidiary) subscribed to a wealth management product of Huatai Global Investment Fund for **HKD 28,000,000**[71](index=71&type=chunk) - Save as disclosed above, no other significant events affecting the Group occurred after June 30, 2025[72](index=72&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=23&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the six months ended June 30, 2025 - For the six months ended June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities[73](index=73&type=chunk) [Interim Dividend](index=23&type=section&id=Interim%20Dividend) The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025[74](index=74&type=chunk) [Compliance with Corporate Governance Code](index=23&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company has complied with the code provisions of the Corporate Governance Code as set out in Appendix C1 of the HKEX Listing Rules for the six months ended June 30, 2025 - For the six months ended June 30, 2025, the company has complied with the code provisions set out in Part 2 of the Corporate Governance Code[75](index=75&type=chunk) [Standard Code for Securities Transactions by Directors](index=23&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) All directors confirmed compliance with the Standard Code for Securities Transactions by Directors of Listed Issuers for the six months ended June 30, 2025 - All directors have confirmed that they have complied with the Standard Code for Securities Transactions by Directors of Listed Issuers for the six months ended June 30, 2025[76](index=76&type=chunk) [Review of Unaudited Interim Results by Audit Committee](index=24&type=section&id=Review%20of%20Unaudited%20Interim%20Results%20by%20Audit%20Committee) The Audit Committee reviewed the unaudited interim condensed consolidated financial information for the six months ended June 30, 2025, confirming compliance with applicable standards and rules, though it was not audited or reviewed by the Group's auditor - The Audit Committee has reviewed the unaudited interim condensed consolidated financial information of the Group for the six months ended June 30, 2025[77](index=77&type=chunk) - The Audit Committee is of the opinion that the financial information complies with applicable accounting standards, the Listing Rules, and other legal requirements, and that adequate disclosures have been made[77](index=77&type=chunk) - This financial information has not been audited or reviewed by Deloitte Touche Tohmatsu, the Group's auditor[77](index=77&type=chunk) [Publication of Interim Results and Interim Report on HKEX and Company Website](index=24&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report%20on%20HKEX%20and%20Company%20Website) This announcement has been published on the HKEX and company websites, and the interim report will be dispatched to shareholders and published on these platforms in due course - This announcement has been published on the website of the Stock Exchange of Hong Kong Limited (www.hkexnews.hk) and the company's website (http://pengfei.com.cn/)[78](index=78&type=chunk) - The company's interim report for the six months ended June 30, 2025, will be dispatched to the company's shareholders and published on the HKEX and company websites in due course[78](index=78&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。 承董事會命 中國鵬飛集團有限公司 主席兼執行董事 王家安 China PengFei Group Limited 中國鵬飛集團有限公司 （於開曼群島註冊成立的有限公司） （股份代號：3348） 董事會會議日期 中國鵬飛集團有限公司（「本公司」）董事會（「董事會」）謹此宣佈，本公司將於二 零二五年八月二十九日（星期五）舉行董事會會議，藉以（其中包括）考慮及批准本 公司及其附屬公司截至二零二五年六月三十日止六個月之中期業績及其發佈，並 考慮建議派付中期股息（如有）。 香港，二零二五年八月十九日 截至本公告日期，董事會包括執行董事王家安先生、周銀標先生、賁道林先生及 徐瑞東先生，及獨立非執行董事張嵐嶸女士、丁再國先生及麥興強先生。 ...

Group 1 - The company Pengfei Group (03348) announced the purchase of financial products worth HKD 28 million by its indirect wholly-owned subsidiary, China Heavy Equipment, through a distributor on August 6, 2025 [1]

Core Viewpoint - China Pengfei Group (03348) announced that its indirect wholly-owned subsidiary, China Heavy Equipment, will subscribe to Huatai Wealth Management products through a distributor for an amount of HKD 28 million, scheduled for August 6, 2025 [1] Group 1 - The subscription amount for the wealth management product is HKD 28 million [1] - The transaction is set to take place on August 6, 2025 [1] - The investment is made through a distributor [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，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分內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 China PengFei Group Limited 中國鵬飛集團有限公司 （於開曼群島註冊成立的有限公司） （股份代號：3348） 須予披露交易 認購理財產品 認購事項 董事會欣然宣佈，於二零二五年八月六日（交易時段後），中國重器（本公司的間 接全資附屬公司）透過分銷商認購金額為28,000,000港元的華泰理財產品。 上市規則涵義 由於根據上市規則第14.07條計算得出有關認購事項的一項適用百分比率超過 5%但低於25%，故認購事項構成本公司的須予披露交易，並須遵守上市規則第 14.33條的申報及公告規定。 認購事項 董事會欣然宣佈，於二零二五年八月六日（交易時段後），中國重器（本公司的間 接全資附屬公司）透過分銷商認購金額為28,000,000港元的華泰理財產品。認購事 項由本集團的閒置資金撥付。 認購事項的主要條款概要載列如下： 附註1：「投資級別」指標準普爾賦予的A-2或以上的短期信貸評級或 ...

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: 中国鹏飞集团有限公司 (「本公司」) （於開曼群島註冊成立的有限公司） 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) | 03348 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.01 HKD | | 100,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.01 HKD | | 100,000,000 ...

Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue was approximately RMB 1,258.9 million, a decrease of 27.2% compared to the previous year[6] - The gross profit for the same period was approximately RMB 249.9 million, reflecting a decline of about 33.3% year-over-year[6] - The profit before tax was approximately RMB 86.0 million, down 52.6% from the previous year[6] - The total profit and comprehensive income attributable to the owners of the company was approximately RMB 67.3 million, a decrease of 52.9% compared to last year[6] - The earnings per share attributable to ordinary shareholders was RMB 0.1346[6] - Total revenue decreased by approximately RMB 470.7 million or 27.2% to about RMB 1,258.9 million for the year ending December 31, 2024, compared to RMB 1,729.5 million in 2023[16] - Equipment sales revenue fell by approximately RMB 560.2 million or 39.7% to about RMB 1,001.0 million for the year ending December 31, 2024, primarily due to decreased demand from domestic customers[17] - Revenue from the building materials sector decreased to approximately RMB 524.9 million for the year ending December 31, 2024, down from RMB 730.0 million in 2023, reflecting a decline in demand[13] - Revenue from production line construction surged by RMB 192.7 million or 486.1% to approximately RMB 232.4 million for the year ending December 31, 2024, driven by projects in Uzbekistan and Kenya[19] - Other income increased by approximately RMB 12.3 million or 68.0% to about RMB 30.4 million for the year ending December 31, 2024, mainly due to higher interest income and government subsidies[22] - Total profit and comprehensive income decreased by approximately RMB 72.8 million or 50.7% to about RMB 70.7 million for the year ending December 31, 2024[29] Dividends and Shareholder Returns - The board proposed a final dividend of RMB 0.04037 per ordinary share, totaling approximately RMB 20.2 million[6] - The company plans to distribute a final dividend of RMB 0.04037 per share, totaling approximately RMB 20.2 million, subject to shareholder approval[58] Strategic Initiatives and Innovations - The company aims to enhance its technological innovation capabilities and focus on high-end, intelligent, and green manufacturing as part of its strategic transformation in 2025[9] - The company is actively advancing multiple overseas projects in Uzbekistan, Bangladesh, Kenya, Burundi, Morocco, and Ghana, with significant progress on cement production lines and grinding station projects[9] - The company continues to invest in energy-saving and environmental protection technology R&D, with 170 authorized patents as of December 31, 2024, including 84 invention patents[14] - The company aims to diversify its business into metallurgy, chemical, and environmental protection industries to expand its customer base[56] - The company is focusing on expanding its international business into Belt and Road countries, which involves various legal and political risks[62] Financial Position and Assets - Current assets net value was approximately RMB 390.3 million as of December 31, 2024, with a current ratio of 122.8%[30] - Cash and cash equivalents increased to approximately RMB 555.4 million as of December 31, 2024, compared to RMB 378.9 million as of December 31, 2023[34] - The debt-to-equity ratio increased to 188.8% as of December 31, 2024, from 170.4% as of December 31, 2023, primarily due to a decrease in equity[35] - The total amount of trade receivables as of December 31, 2024, was 38% attributable to payments from customers involved in the group's production line construction, down from 45% as of December 31, 2023, indicating a concentration of credit risk[39] - The group held financial assets at fair value through profit or loss amounting to approximately RMB 109.3 million as of December 31, 2024, representing 4.0% of total assets, an increase from RMB 103.1 million in the previous year[49] Governance and Management - The company has established four board committees: Audit Committee, Remuneration Committee, Nomination Committee, and Investment Committee, to oversee specific areas of the company's affairs[111] - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[150] - The board believes that corporate culture is the foundation for long-term business development and economic achievement[151] - The company has a gender diversity policy in place, currently having 1 female executive out of 8 total executives, with 7 males, and 28.1% of the total workforce being female[163] - Continuous professional development is mandatory for all directors to ensure compliance and enhance awareness of good corporate governance practices[172] Risks and Challenges - The company’s revenue heavily relies on the macroeconomic conditions in China, which poses a risk to future growth prospects[59] - The company acknowledges the importance of maintaining good relationships with employees, suppliers, customers, and other stakeholders to achieve current and long-term goals[76] - The company does not guarantee that future expansion plans in the "Belt and Road" countries will be successful or yield expected returns[63] Employee and Community Engagement - Charitable donations for the year ended December 31, 2024, amounted to RMB 200,000, down from RMB 327,693.81 in 2023[72] - The company has been actively involved in public service, with Mr. Wang serving in various leadership roles in industry associations[123]

Financial Performance - For the year ending December 31, 2024, the revenue was approximately RMB 1,258.9 million, a decrease of 27.2% compared to the previous year[5] - The gross profit for the same period was approximately RMB 249.9 million, representing a decline of about 33.3% year-on-year[5] - The profit before tax was approximately RMB 86.0 million, down approximately 52.6% from the previous year[5] - The profit attributable to equity holders of the company for the year was approximately RMB 67.3 million, a decrease of about 52.9% compared to last year[5] - The total revenue for the year ended December 31, 2024, was approximately RMB 1,258.9 million, a decrease of 27.2% from RMB 1,729.5 million in 2023[52] - Total profit and comprehensive income decreased by approximately RMB 72.8 million or 50.7% from approximately RMB 143.5 million for the year ended December 31, 2023, to approximately RMB 70.7 million for the year ending December 31, 2024[63] Earnings and Dividends - The earnings per share attributable to ordinary shareholders was RMB 13.46 cents[5] - The board recommended a final dividend of RMB 0.04037 per ordinary share, totaling approximately RMB 20.2 million[5] - The proposed final dividend for the year ended December 31, 2024, is RMB 0.04037 per share, totaling approximately RMB 20.2 million, subject to shareholder approval[87] - The total dividend payout ratio is 30% of the profit attributable to the owners of the company for the year[87] Assets and Liabilities - The total assets less current liabilities as of December 31, 2024, amounted to RMB 989.2 million, compared to RMB 981.6 million in the previous year[8] - The company's cash and cash equivalents increased to RMB 506.4 million from RMB 378.9 million year-on-year[7] - Trade receivables decreased to RMB 93.6 million from RMB 125.9 million year-on-year[7] - The company reported a total of RMB 1,058,383,000 in cost of sales for the year ended December 31, 2024, down from RMB 1,264,751,000 in 2023, representing a decrease of about 16.3%[26] - The company's debt-to-equity ratio increased to 188.8% as of December 31, 2024, from 170.4% as of December 31, 2023[69] Revenue Breakdown - Revenue from equipment sales at a specific point in time was RMB 1,000,956 thousand, down from RMB 1,661,171 thousand in the previous year, representing a decline of 39.7%[14] - Revenue from construction line services increased significantly to RMB 232,372 thousand from RMB 39,645 thousand, marking a growth of 485.5%[14] - Revenue from installation services decreased slightly to RMB 25,548 thousand from RMB 28,714 thousand, a decline of 10.0%[14] - Revenue from mainland China for the year ended December 31, 2024, was RMB 936,516,000, down from RMB 1,289,416,000 in 2023, representing a decrease of approximately 27.4%[24] - Revenue from non-building materials customers accounted for 71.1% of total equipment sales in 2024, up from 59.1% in 2023[49] Research and Development - The company invested RMB 51.4 million in research expenses, an increase from RMB 36.0 million in the previous year[6] - The company’s research expenses for the year ended December 31, 2024, were RMB 19,652,000, an increase from RMB 18,155,000 in 2023, reflecting an increase of approximately 8.2%[27] - The company is focusing on research and development of energy-saving technologies and has partnered with Tsinghua University for key technology research[50] Employee and Labor Relations - As of December 31, 2024, the group had 888 employees, a decrease from 1,092 employees as of December 31, 2023[80] - Employee costs for the year ended December 31, 2024, amounted to approximately RMB 125.1 million, down from RMB 137.7 million in 2023[80] - The group has maintained good working relationships with employees, with no major labor disputes reported[80] Cash Flow and Liquidity - The net cash generated from operating activities for the year ended December 31, 2024, was approximately RMB 387.0 million, compared to RMB 46.4 million for the previous year[69] - The company did not face any liquidity issues as of December 31, 2024, maintaining sufficient cash and cash equivalents[74] Compliance and Governance - The company has adopted the Corporate Governance Code as per the Listing Rules Appendix C1 and has complied with its provisions for the year ending December 31, 2024[89] - All directors confirmed compliance with the Standard Code for Securities Transactions by Directors for the year ending December 31, 2024[90] - The Audit Committee, consisting of three independent non-executive directors, reviewed and discussed the audited consolidated financial statements for the year ending December 31, 2024[91] Other Financial Information - The company has not early adopted any new or revised International Financial Reporting Standards that are expected to have a significant impact on consolidated financial statements in the foreseeable future[12] - The group has not engaged in any significant off-balance sheet transactions or arrangements as of December 31, 2024[79] - There have been no significant investments or acquisitions made by the group as of December 31, 2024[82] - The figures in the preliminary announcement for the year ending December 31, 2024, have been agreed upon by the auditors, Deloitte, and are consistent with the amounts approved by the board on March 31, 2024[92] - The annual report for the year ending December 31, 2024, will be sent to shareholders and published on the Stock Exchange and the company's website in due course[93]

Financial Performance - For the six months ended June 30, 2024, the revenue was approximately RMB 632.7 million, a decrease of about 25.0% compared to the same period last year[5]. - The gross profit for the same period was approximately RMB 120.5 million, reflecting a decrease of about 16.6% year-on-year[5]. - The profit before tax for the six months ended June 30, 2024, was approximately RMB 38.2 million, down approximately 51.0% from the previous year[5]. - The total profit and comprehensive income attributable to the owners of the company for the same period was approximately RMB 32.5 million, a decrease of about 49.2% year-on-year[5]. - The earnings per share attributable to ordinary shareholders for the six months ended June 30, 2024, was RMB 0.063[5]. - Revenue for the six months ended June 30, 2024, decreased by approximately RMB 210.8 million or 25.0% to about RMB 632.7 million compared to RMB 843.5 million for the same period in 2023[14]. - Equipment manufacturing revenue dropped by approximately RMB 293.7 million or 35.4% to about RMB 536.0 million for the six months ended June 30, 2024, compared to RMB 829.7 million for the same period in 2023[15]. - Installation service revenue decreased by approximately RMB 11.5 million or 83.3% to about RMB 2.3 million for the six months ended June 30, 2024, compared to RMB 13.8 million for the same period in 2023[16]. - Gross profit decreased by approximately RMB 23.9 million or 16.6% to about RMB 120.5 million for the six months ended June 30, 2024, compared to RMB 144.4 million for the same period in 2023[18]. - The gross profit margin increased to 19.0% for the six months ended June 30, 2024, compared to 17.1% for the same period in 2023[18]. - The net profit for the period was RMB 32,487 thousand, a decline of 49% from RMB 63,889 thousand in the prior year[62]. - Basic earnings per share decreased to RMB 6.26 from RMB 12.78, reflecting the drop in profitability[62]. - The total income tax expense for the six months ended June 30, 2024, was RMB 5,720,000, a decrease of 59.5% from RMB 14,105,000 in 2023[79]. Market Strategy and Development - The company is focusing on expanding its market presence in Central Asia and Africa while enhancing domestic market potential[7]. - The company aims to enhance its competitive edge through differentiated products, services, and business models while exploring potential growth in international markets[8]. - The company is committed to high-quality development and safety, aiming to become a world-class high-end equipment manufacturing group[8]. - The company aims to expand its business into emerging markets and countries along the "Belt and Road" initiative, focusing on infrastructure investment opportunities[13]. Research and Innovation - The company has increased investment in independent technological innovation, developing new technologies and equipment in the fields of building materials, metallurgy, and environmental protection[7]. - Four products have been recognized for new technology and products in Jiangsu Province's building materials industry[7]. - Research expenses surged by approximately RMB 25.7 million or 223.4% to about RMB 37.3 million for the six months ending June 30, 2024, driven by increased R&D costs related to environmentally friendly production technology[23]. Financial Position and Cash Flow - Current assets net value was approximately RMB 393.2 million as of June 30, 2024, with a current ratio of 126.3%[27]. - Cash and cash equivalents increased to approximately RMB 532.6 million as of June 30, 2024, from RMB 378.9 million as of December 31, 2023[29]. - The debt-to-equity ratio increased to 173.7% as of June 30, 2024, compared to 170.3% as of December 31, 2023, primarily due to a decrease in equity[29]. - For the six months ended June 30, 2024, the group recorded a net cash inflow from operating activities of approximately RMB 150.9 million, compared to RMB 38.5 million for the same period in 2023[30]. - The net cash inflow from investing activities for the six months ended June 30, 2024, was approximately RMB 38.3 million, down from RMB 129.4 million in the same period of 2023[30]. - The net cash outflow from financing activities for the six months ended June 30, 2024, was approximately RMB 36.7 million, compared to RMB 49.4 million for the same period in 2023[30]. - The company’s cash flow from investing activities showed a net cash inflow of RMB 38,451 thousand, down from RMB 129,426 thousand in the previous year[67]. Shareholder Information - The major shareholder, Ambon Holding Limited, holds 225,249,438 shares, representing 45.05% of the total equity[52]. - PF International Group Limited holds 133,211,176 shares, accounting for 26.64% of the total equity[52]. - PF Global Limited owns 49,635,386 shares, which is 9.93% of the total equity[52]. - As of June 30, 2024, the company maintained a public float of at least 25% of its issued shares in compliance with the listing rules[46]. Compliance and Governance - The company has adopted the Corporate Governance Code and has complied with its principles and provisions as of June 30, 2024[47]. - The audit committee reviewed the unaudited interim financial information and confirmed compliance with applicable accounting standards and regulations[57]. Assets and Liabilities - Total assets as of June 30, 2024, were RMB 1,885,327 thousand, slightly up from RMB 1,860,462 thousand at the end of 2023[63]. - Current liabilities amounted to RMB 1,492,165 thousand, compared to RMB 1,478,830 thousand at the end of the previous year, indicating a slight increase[63]. - The company’s total equity attributable to owners decreased to RMB 898,178 thousand as of June 30, 2024, from RMB 909,727 thousand as of January 1, 2024[65]. - Trade receivables as of June 30, 2024, amounted to RMB 368,295,000, a slight increase from RMB 367,387,000 as of December 31, 2023[86]. - The provision for impairment losses on trade receivables decreased to RMB 79,182,000 from RMB 85,114,000, resulting in a net trade receivables balance of RMB 289,113,000[86]. Employee and Management Costs - The total employee costs for the six months ended June 30, 2024, were approximately RMB 57.6 million, down from RMB 66.6 million for the same period in 2023[41]. - Total compensation for key management personnel was RMB 1,017 thousand for the six months ended June 30, 2024, compared to RMB 1,059 thousand for the same period in 2023, reflecting a decrease of approximately 4%[100].

Financial Performance - For the six months ended June 30, 2024, revenue was approximately RMB 632.7 million, a decrease of about 25% compared to the same period last year[1] - Gross profit for the same period was approximately RMB 120.5 million, representing a decrease of about 16.6% year-on-year[1] - Profit before tax for the six months ended June 30, 2024, was approximately RMB 38.2 million, down approximately 51.0% from the previous year[1] - The profit attributable to equity holders of the company for the same period was approximately RMB 32.5 million, a decrease of about 49.2% compared to last year[1] - Basic earnings per share for the six months ended June 30, 2024, was RMB 6.26, down from RMB 12.78 in the same period last year[3] - Revenue decreased by approximately RMB 210.8 million or 25.0% to about RMB 632.7 million for the six months ended June 30, 2024, compared to RMB 843.5 million for the same period in 2023[32] - Equipment manufacturing revenue fell by approximately RMB 293.7 million or 35.4% to about RMB 536.0 million for the six months ended June 30, 2024, primarily due to a decrease in sales of grinding equipment systems[33] - Installation service revenue decreased by approximately RMB 11.5 million or 83.3% to about RMB 2.3 million for the six months ended June 30, 2024, due to reduced demand from equipment manufacturing customers[33] - Net profit attributable to the company decreased by approximately RMB 32.6 million or 51.0% to about RMB 31.3 million for the six months ended June 30, 2024, compared to RMB 63.9 million for the same period in 2023[43] Assets and Liabilities - Total assets as of June 30, 2024, were approximately RMB 1,885.3 million, compared to RMB 1,860.5 million as of December 31, 2023[4] - Current liabilities amounted to approximately RMB 1,492.2 million as of June 30, 2024, compared to RMB 1,478.8 million at the end of 2023[4] - Trade receivables amounted to RMB 368,295,000, with a provision for impairment of RMB 79,182,000[19] - Trade receivables as of June 30, 2024, amounted to RMB 289.1 million, compared to RMB 282.3 million as of December 31, 2023[21] - Trade payables as of June 30, 2024, were RMB 377.3 million, down from RMB 414.9 million as of December 31, 2023[25] - The company had bank borrowings of approximately RMB 19.8 million as of June 30, 2024, down from RMB 55.3 million as of December 31, 2023, with an interest rate of 3.05% on the majority of the borrowings[46] - The company's debt-to-equity ratio was 173.7% as of June 30, 2024, up from 170.3% as of December 31, 2023, primarily due to a decrease in equity[47] Cash Flow and Income - The company's cash and cash equivalents increased to approximately RMB 532.6 million from RMB 378.9 million at the end of 2023[4] - The net cash generated from operating activities for the six months ended June 30, 2024, was approximately RMB 150.9 million, compared to RMB 38.5 million for the same period in 2023[47] - Other income for the six months ended June 30, 2024, was approximately RMB 15.4 million, compared to RMB 4.4 million in the same period last year[3] - Other income increased significantly by approximately RMB 11.0 million or 248.6% to about RMB 15.4 million for the six months ended June 30, 2024, mainly due to higher interest income and government subsidies[36] Research and Development - Research expenses for the six months ended June 30, 2024, were approximately RMB 37.3 million, significantly higher than RMB 11.5 million in the previous year[3] - Research expenditure increased by approximately RMB 25.7 million or 223.4% to about RMB 37.3 million for the six months ended June 30, 2024, aimed at enhancing competitiveness in the environmentally friendly production technology market[40] Market and Revenue Segments - Revenue from the building materials sector for the six months ended June 30, 2024, was approximately RMB 203.9 million, down from RMB 298.9 million for the same period in 2023[29] - Revenue from mainland China was RMB 501,362,000, down 31.1% from RMB 728,174,000 in the previous year[13] - Revenue from customers in "Belt and Road" countries represented approximately 6.9% and 20.8% of total revenue for the six months ended June 30, 2023, and 2024, respectively[29] Corporate Governance and Future Plans - The company declared a final dividend of RMB 0.0857 per share, totaling RMB 42,850,000, compared to RMB 37,000,000 in the previous year[16] - The company aims to leverage the "Belt and Road" initiative to explore production line construction opportunities in countries with strong demand for building materials and related production equipment[31] - The company plans to focus on market share expansion, product differentiation, and innovation to enhance competitiveness in both domestic and international markets[31] - The board has decided not to declare an interim dividend for the six months ending June 30, 2024, consistent with the previous period[67] Employee and Operational Metrics - Employee costs, including director remuneration, amounted to approximately RMB 57.6 million for the six months ended June 30, 2024, compared to RMB 66.6 million for the same period in 2023[59] - The group maintained a workforce of 894 employees as of June 30, 2024, a decrease from 1,102 employees on June 30, 2022[58] Compliance and Reporting - The audit committee has reviewed the unaudited interim financial information for the six months ending June 30, 2024, and believes it complies with applicable accounting standards and regulations[67] - The interim report for the six months ending June 30, 2024, will be published on the Hong Kong Stock Exchange and the company's website[68]