财务数据显示，截至2025年6月30日，宏信建发实现营业总收入43.5亿元，同比减少10.72%；归母净利 润3549万元，同比减少86.77%；毛利率21.62%，资产负债率69.03%。 最近一个月来，宏信建发累计涨幅0%，今年来累计跌幅9.83%，跑输恒生指数23.3%的涨幅。 机构评级方面，天风证券股份有限公司给予"增持"评级。 行业估值方面，工业工程行业市盈率（TTM）平均值为16.75倍，行业中值3.12倍。宏信建发市盈率5.29 倍，行业排名第18位；其他中国航天万源（01185.HK）为0.32倍、谊砾控股（00076.HK）为0.35倍、亿 都(国际控股)（00259.HK）为0.82倍、同景新能源（08326.HK）为2.74倍、博奇环保（02377.HK）为 2.88倍。 资料显示，宏信建设发展有限公司(简称"宏信建发")是远东宏信(03360.HK)旗下的设备租赁公司,致力于 为建筑业和产业客户提供"产品+服务"的一站式整体解决方案,持续为用户创造价值。自2011年成立至今, 公司已成为规模及综合能力全国领先的设备综合运营服务商,位列全球租赁公司排行榜(IRN100)第14名, 在中国 ...

Group 1 - The report highlights that the U.S. non-farm employment data for July was below expectations, with only 73,000 new jobs added compared to the anticipated 110,000, indicating a cooling labor market [2][26] - In China, the Politburo meeting emphasized the need for proactive fiscal policies and moderate monetary policies, with a focus on achieving the goals set for the 14th Five-Year Plan [2][24] - The manufacturing PMI in China showed a decline, remaining in the contraction zone, while the non-manufacturing PMI also fell, reflecting a slowdown in production activities [2][24] Group 2 - The report indicates that the A-share market's price-to-earnings (PE) ratio is currently at 20.4, with most broad indices above the 50% historical percentile, suggesting a relatively high valuation [3][34] - The report notes an increase in trading activity, with turnover rates and transaction volumes rising, indicating a continuation of market enthusiasm [3][34] - Investor behavior shows a rebound in share buybacks, while the scale of capital reduction by industrial capital has widened, suggesting mixed signals in market sentiment [3][34] Group 3 - The report discusses the basic metals sector, highlighting the supply-demand imbalance and the cyclical nature of recession and recovery, which are closely tied to manufacturing demand [10] - In the precious metals sector, central bank gold purchases are expected to drive demand, with geopolitical tensions contributing to a potential rise in gold prices [10] - The report emphasizes the need to reassess the rare earth industry, anticipating a new growth cycle driven by demand rather than supply-side fluctuations [10] Group 4 - The agricultural sector report indicates that pig prices are at a low point, with the average price of live pigs at 14.35 yuan/kg, down 3.1% from the previous week, and the price of piglets hitting a yearly low [11] - The report suggests focusing on undervalued stocks in the pig farming sector, particularly leading companies like Muyuan Foods and Wens Foodstuffs, which are expected to benefit from potential recovery in prices [11] Group 5 - The report on the construction and decoration industry notes a 2.5% decline in the CS construction sector, underperforming the broader market, but highlights opportunities in specialized engineering investments driven by green transformation policies [17] - It suggests that the "anti-involution" policy will improve corporate profitability and increase spending on upgrades, benefiting specialized engineering companies [17] Group 6 - The real estate sector report indicates that the sales growth of the top 100 real estate companies remains weak, with expectations of continued decline in August, but anticipates a potential recovery in the fourth quarter due to supportive policies [19] - The report recommends focusing on non-state-owned enterprises that may benefit from debt relief and demand improvement, as well as leading firms with product advantages [19]

Core Viewpoint - The company reported significant pressure on revenue and profit in the first half of 2025, leading to a downward revision of performance expectations and an "overweight" rating adjustment [1][2] Financial Performance - In H1 2025, the company achieved revenue of 4.35 billion, a year-on-year decrease of 10.8%, with EBITDA at 1.97 billion, down 2% year-on-year, and net profit at 0.035 billion, a decline of 86.8% [1] - The expected net profit for 2025-2027 is revised to 0.53 billion, 0.63 billion, and 0.75 billion, reflecting year-on-year changes of -40%, +17%, and +20% respectively, with corresponding PE ratios of 6.4, 5.5, and 4.6 [1] Business Segmentation - Revenue from operating leasing, engineering technology, asset management, and other services was 2.27 billion, 1.14 billion, 0.95 billion, with year-on-year changes of +19.5%, -41.5%, and -8.2% respectively [1] - The overall gross margin for the company was 21.6%, a decrease of 10.4 percentage points year-on-year, primarily due to rental price fluctuations [1][2] Regional Performance - Domestic revenue (including Hong Kong and Macau) was 3.75 billion, down 21.8%, while overseas revenue reached 0.6 billion, up 719.8%, increasing the overseas revenue share to approximately 14% [2] - The company managed 195,500 units domestically and 16,400 units overseas, with overseas asset management size around 4.3 billion [2] Cost and Efficiency - The sales, management, and financial expense ratios were 5.57%, 11.95%, and 9.22%, showing slight increases year-on-year [2] - The company reported a financial asset and contract asset impairment reversal of 0.19 billion, contributing to a net profit margin of 0.8%, down 4.7 percentage points year-on-year [2] Strategic Developments - The company completed an 80% acquisition of Dongqing on May 30, with a valuation based on 6 times adjusted EBITDA, enhancing its market share in Malaysia [2] - The company plans to expand into 3 to 5 new countries in the second half of 2025 [2]

Investment Rating - The report assigns a rating of "Accumulate" to the company, reflecting a downward adjustment in expectations [5]. Core Views - The company experienced significant pressure on revenue and profit in the first half of 2025, with revenue declining by 10.8% year-on-year to 4.35 billion, EBITDA down by 2% to 1.97 billion, and net profit plummeting by 86.8% to 0.035 billion, primarily due to increased depreciation and financial interest expenses [1][2]. - The report highlights the company's strategic shift towards overseas expansion, which has become a new growth driver, with overseas revenue soaring by 719.8% to 0.6 billion, now accounting for approximately 14% of total revenue [3]. - The company is adjusting its performance expectations for 2025-2027, forecasting net profit of 0.53 billion, 0.63 billion, and 0.75 billion respectively, with corresponding PE ratios of 6.4, 5.5, and 4.6 [1]. Revenue and Profit Analysis - The company's revenue from various segments showed mixed results: operating leasing increased by 19.5% to 2.27 billion, while engineering technology and asset management services saw declines of 41.5% to 1.14 billion and 8.2% to 0.95 billion respectively [2]. - The overall gross margin decreased by 10.4 percentage points to 21.6%, primarily due to fluctuations in rental prices affecting the operating leasing segment [2]. Cost and Financial Metrics - The report notes a slight increase in expense ratios, with sales, management, and financial expense ratios at 5.57%, 11.95%, and 9.22% respectively, showing year-on-year increases [4]. - The company reported a net profit margin of 0.8%, down by 4.7 percentage points, while the asset-liability ratio increased slightly to 69% [4]. Strategic Initiatives - The company is actively pursuing overseas market expansion, with plans to enter 3 to 5 new countries in the second half of 2025, and has completed an 80% acquisition of Dongqing Company, enhancing its market position in Malaysia [3].

宏信建发(09930.HK)发布截至2025年6月30日止6个月业绩，该集团期内取得收入总额43.5亿元人民币， 同比减少10.72%;公司普通股持有人应占溢利3549万元，同比减少86.77%;基本每股收益0.011元。 本文源自：金融界AI电报 ...

集团收入的下降主要基于国内市场环境下设备租金的持续下跌、国内与工程技术服务高度相关的材料类 业务的主动收缩、以及国内设备运送至海外营业网点对利用率的暂时性影响等。2025年上半年，集团积 极部署海外网点和业务团队，海外实现收入约人民币5.97亿元。 宏信建发(09930)发布截至2025年6月30日止6个月业绩，该集团期内取得收入总额43.5亿元人民币，同比 减少10.72%;公司普通股持有人应占溢利3549万元，同比减少86.77%;基本每股收益0.011元。 ...

Core Viewpoint - Macro China Development (09930) reported a total revenue of RMB 4.35 billion for the six months ending June 30, 2025, representing a year-on-year decrease of 10.72% [1] - The company's profit attributable to ordinary shareholders was RMB 35.49 million, a significant decline of 86.77% year-on-year, with basic earnings per share at RMB 0.011 [1] Revenue Analysis - The decline in revenue is primarily attributed to the continuous drop in equipment rental prices in the domestic market, proactive contraction of material-related businesses closely linked to engineering services, and temporary impacts on utilization rates due to domestic equipment being transported to overseas outlets [1] - In the first half of 2025, the company actively deployed overseas outlets and business teams, achieving approximately RMB 5.97 billion in overseas revenue [1]

Group 1 - The company reported a revenue of RMB 4.35 billion for the first half of 2025, a decrease of 10.7% year-on-year [1] - Gross profit was RMB 941 million, down 39.7% year-on-year, while profit before tax was RMB 50.28 million, a decline of 87.6% year-on-year [1] - The company's net profit attributable to ordinary shareholders was RMB 35.49 million, a decrease of 86.8% year-on-year, and EBITDA was RMB 1.969 billion, down 1.7% year-on-year [1] Group 2 - The decline in revenue was primarily due to the continuous drop in equipment rental prices in the domestic market, proactive contraction of materials-related business, and temporary impacts on utilization rates from domestic equipment being shipped to overseas outlets [1] - The company has established a diverse, stable, and high-quality customer base, increasing from approximately 232,000 customers in 2023 to about 367,000 in the first half of 2025, including around 6,000 overseas customers [2] - Average utilization rates for aerial work platforms and new formwork systems were lower than the same period last year, while new support systems showed slightly better utilization rates compared to last year [2]

Performance Overview [Operating Performance and Profitability](index=8&type=section&id=Performance%20Overview-Operating%20Performance%20and%20Profitability) The company's total revenue decreased to RMB 4.35 billion, with gross profit falling to RMB 940 million and profit attributable to ordinary equity holders significantly declining to RMB 35.49 million, resulting in a basic EPS of RMB 0.011 Key Operating Results for the Six Months Ended June 30, 2025 | Metric | First Half 2025 (Thousands of RMB) | First Half 2024 (Thousands of RMB) | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | 4,350,062 | 4,872,421 | -10.7% | | **Gross Profit** | 940,667 | 1,559,325 | -39.7% | | **Gross Margin** | 21.6% | 32.0% | -10.4pp | | **Profit Before Tax** | 50,276 | 406,890 | -87.6% | | **Profit Attributable to Ordinary Equity Holders of the Company** | 35,490 | 268,228 | -86.8% | | **Basic Earnings Per Share (RMB)** | 0.011 | 0.084 | -86.9% | Gross Profit and Gross Margin by Business Segment | Business Segment | Gross Profit First Half 2025 (Thousands of RMB) | Gross Margin First Half 2025 | Gross Margin First Half 2024 | | :--- | :--- | :--- | :--- | | Operating Lease Services | 621,196 | 27.4% | 37.1% | | Engineering Technical Services | 171,407 | 15.1% | 27.0% | | Asset Management and Other Services | 148,064 | 15.7% | 32.1% | - Profitability metrics significantly declined, with **Return on Average Equity (ROAE)** decreasing from **4.9%** in the prior year period to **0.6%**[11](index=11&type=chunk) [Balance Sheet Position](index=9&type=section&id=Performance%20Overview-Balance%20Sheet%20Position) As of June 30, 2025, the Group's total assets remained stable at RMB 36.58 billion, while total liabilities slightly increased to RMB 25.25 billion, and total equity decreased to RMB 11.33 billion Summary of Balance Sheet as of June 30, 2025 | Metric | June 30, 2025 (Thousands of RMB) | December 31, 2024 (Thousands of RMB) | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | 36,581,356 | 36,434,181 | +0.4% | | **Total Liabilities** | 25,253,610 | 24,975,831 | +1.1% | | **Total Equity** | 11,327,746 | 11,458,350 | -1.1% | | **Gearing Ratio** | 69.0% | 68.6% | +0.4pp | | **Net Asset Value Per Share (RMB)** | 3.62 | 3.66 | -1.1% | Management Discussion and Analysis [Industry Environment and Company Response](index=12&type=section&id=1%E3%80%81Industry%20Environment%20and%20Company%20Response) The company adopted a dual-track strategy of domestic lean operations and aggressive overseas expansion, optimizing asset structure and reducing costs domestically while accelerating global presence through acquisitions and tiered resource allocation abroad - Domestic Market: In the first half of 2025, China's GDP grew **5.3% YoY**, but the construction sector was generally sluggish, with real estate development construction area decreasing **9.1% YoY**; however, infrastructure investment and manufacturing investment grew **4.6%** and **7.5%** respectively, supporting engineering machinery leasing[15](index=15&type=chunk) - Overseas Markets: Emerging markets like Southeast Asia, the Middle East, and Africa show strong infrastructure demand, with the construction sector and GDP in several countries where the company operates (e.g., Malaysia, Indonesia, Vietnam, Saudi Arabia) exhibiting good growth trends[17](index=17&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk) - Company Response Strategy: Domestically, shifting from investment-driven to lean operations, optimizing asset structure, and expanding into diversified scenarios like mining and marine engineering; overseas, firmly executing the '3+3+3' strategy, consolidating Southeast Asia, deeply exploring Middle East potential, and completing the acquisition of a leading Malaysian leasing company[24](index=24&type=chunk)[25](index=25&type=chunk) - As of the first half of 2025, the Group's global service network reached **567** locations, with **63** overseas, covering **7** countries[25](index=25&type=chunk) [Income Statement Analysis](index=17&type=section&id=2%E3%80%81Income%20Statement%20Analysis) In the first half of 2025, total revenue decreased 10.7% to RMB 4.35 billion, gross margin fell to 21.6%, and profit for the period plummeted 86.8% to RMB 35.49 million, with overseas business profitability being a key highlight [Income Statement Overview](index=17&type=section&id=2.1%20Income%20Statement%20Analysis%20%28Overview%29) In the first half of 2025, revenue decreased 10.7%, profit before tax sharply declined 87.6% to RMB 50.28 million, while selling and administrative expenses and finance costs increased, though adjusted EBITDA saw only a slight 1.7% decrease Summary of Income Statement for the First Half of 2025 | Item | For the Six Months Ended June 30 (2025) (Thousands of RMB) | For the Six Months Ended June 30 (2024) (Thousands of RMB) | Change % | | :--- | :--- | :--- | :--- | | Revenue | 4,350,062 | 4,872,421 | -10.7% | | Gross Profit | 940,667 | 1,559,325 | -39.7% | | Profit Before Tax | 50,276 | 406,890 | -87.6% | | Profit for the Period | 35,490 | 268,228 | -86.8% | EBITDA (Non-HKFRS Measure) | Item | For the Six Months Ended June 30 (2025) (Thousands of RMB) | For the Six Months Ended June 30 (2024) (Thousands of RMB) | Change % | | :--- | :--- | :--- | :--- | | EBITDA | 1,968,638 | 2,003,614 | -1.7% | | Depreciation and Amortization | 1,521,215 | 1,224,653 | 24.2% | [Revenue Analysis](index=18&type=section&id=2.2%20Revenue) Total revenue decreased 10.7% to RMB 4.35 billion, driven by domestic rental declines and engineering services contraction, while operating lease services revenue grew 19.5% and overseas revenue surged 719.8% to RMB 597 million, becoming a key growth driver Revenue by Business Segment | Business Segment | First Half 2025 Revenue (Thousands of RMB) | Revenue Share | YoY Change % | | :--- | :--- | :--- | :--- | | Operating Lease Services | 2,265,244 | 52.1% | +19.5% | | Engineering Technical Services | 1,138,882 | 26.2% | -41.5% | | Asset Management and Other Services | 945,936 | 21.7% | -8.2% | | **Total** | **4,350,062** | **100.0%** | **-10.7%** | Revenue by Geographical Segment | Geographical Segment | First Half 2025 Revenue (Thousands of RMB) | Revenue Share | YoY Change % | | :--- | :--- | :--- | :--- | | Domestic Regions (including Hong Kong and Macau) | 3,752,682 | 86.3% | -21.8% | | Overseas Regions | 597,380 | 13.7% | +719.8% | | **Total** | **4,350,062** | **100.0%** | **-10.7%** | Key Product Line Operating Data | Product Line | Metric | First Half 2025 | First Half 2024 | | :--- | :--- | :--- | :--- | | Aerial Work Platforms | Equipment Under Management (Thousands of Units) | 202.6 | 204.8 | | | Utilization Rate | 64.0% | 65.6% | | New Support Systems | Equipment Under Management (Thousands of Tons) | 1,371.1 | 1,613.2 | | | Utilization Rate | 70.4% | 66.9% | | New Formwork and Scaffolding Systems | Equipment Under Management (Thousands of Tons) | 638.3 | 748.4 | | | Utilization Rate | 66.3% | 75.6% | [Gross Profit and Gross Margin Analysis](index=23&type=section&id=2.3%20Gross%20Profit%20and%20Gross%20Margin) Gross profit decreased 39.7% to RMB 941 million, with overall gross margin falling 10.4 percentage points to 21.6% due to market price fluctuations, while overseas business gross profit contribution significantly increased to 28.8% Gross Profit and Gross Margin by Business Segment | Business Segment | Gross Profit First Half 2025 (Thousands of RMB) | Gross Margin % | YoY Change in Gross Profit Amount % | | :--- | :--- | :--- | :--- | | Operating Lease Services | 621,196 | 27.4% | -11.6% | | Engineering Technical Services | 171,407 | 15.1% | -67.4% | | Asset Management and Other Services | 148,064 | 15.7% | -55.3% | | **Total Gross Profit** | **940,667** | **21.6%** | **-39.7%** | - Operating lease services gross margin decreased **9.7 percentage points** to **27.4%**, primarily impacted by utilization rates and rental price fluctuations of aerial work platforms and new formwork and scaffolding systems[45](index=45&type=chunk) - Overseas regions' gross profit surged **2,638.8% YoY** to **RMB 271 million**, significantly increasing its share of total gross profit from **0.6%** to **28.8%**[48](index=48&type=chunk) [Cost and Expense Analysis](index=25&type=section&id=2.4%20Cost%20of%20Sales%20and%20Selling%20and%20Administrative%20Expenses) In the first half of 2025, total cost of sales and selling & administrative expenses increased 4.0% to RMB 4.17 billion, driven by higher depreciation and trading costs, while staff and transportation costs were effectively controlled Cost of Sales and Selling and Administrative Expenses (by Nature) | Item | First Half 2025 (Thousands of RMB) | % of Revenue | YoY Change % | | :--- | :--- | :--- | :--- | | Depreciation and Amortization | 1,486,981 | 34.2% | +24.3% | | Staff and Subcontracting Costs | 944,183 | 21.7% | -6.9% | | Trading and Sub-lease Costs | 658,887 | 15.1% | +15.2% | | Transportation and Hoisting Fees | 304,439 | 7.0% | -32.1% | | Research and Development (R&D) Expenses | 106,442 | 2.4% | +50.1% | | **Total** | **4,167,726** | **95.8%** | **+4.0%** | - Depreciation and amortization significantly increased by **24.3%**, primarily due to the combined effect of increased equipment scale compared to the prior year period and changes in accounting policies (extending the useful life of some scaffolding)[50](index=50&type=chunk)[51](index=51&type=chunk) - Transportation and hoisting fees significantly decreased by **32.1%**, benefiting from lower asset rental volume and a logistics cost reduction management system, with logistics unit prices decreasing **4.2% YoY**[51](index=51&type=chunk) [Finance Costs Analysis](index=28&type=section&id=2.8%20Finance%20Costs) Finance costs increased 5.0% to RMB 401 million due to higher borrowing interest, but the average financing rate decreased from 3.99% to 3.69%, effectively mitigating the growth of interest expenses Interest Expense on Interest-bearing Bank and Other Borrowings | Metric | First Half 2025 | First Half 2024 | | :--- | :--- | :--- | | Average Balance (Thousands of RMB) | 21,063,794 | 18,382,079 | | Interest Expense (Thousands of RMB) | 388,992 | 367,027 | | Average Financing Rate (Annualized) | 3.69% | 3.99% | - The average financing rate decreased by **0.30 percentage points**, primarily due to central bank interest rate cuts and preferential rates obtained by the company[60](index=60&type=chunk) [Profit for the Period and Earnings Per Share](index=30&type=section&id=2.10%20Profit%20for%20the%20Period) The Group's profit for the first half of 2025 significantly decreased 86.8% to RMB 35.49 million, with domestic regions incurring a loss while overseas regions achieved a profit of RMB 113 million, and basic EPS fell to RMB 0.011 Net Profit After Tax by Geographical Segment | Geographical Segment | First Half 2025 (Thousands of RMB) | First Half 2024 (Thousands of RMB) | | :--- | :--- | :--- | | Domestic Regions (including Hong Kong and Macau) | -77,861 | 296,955 | | Overseas Regions | 113,351 | -28,727 | | **Total** | **35,490** | **268,228** | - Basic earnings per share was **RMB 0.011**, a **86.9%** decrease from **RMB 0.084** in the prior year period[64](index=64&type=chunk)[65](index=65&type=chunk) [Financial Position Analysis](index=31&type=section&id=3%E3%80%81Financial%20Position%20Analysis) As of June 30, 2025, total assets remained stable at RMB 36.58 billion, with PPE slightly decreasing, receivables increasing but with longer DSO, total liabilities rising to RMB 25.25 billion, and overseas assets significantly growing 52.8% [Asset Analysis](index=31&type=section&id=3.1%20Assets%20%28Overview%29) Total assets slightly increased 0.4% to RMB 36.58 billion, with PPE decreasing, receivables growing but with longer DSO, cash and bank balances increasing 38.1% to RMB 2.48 billion, and overseas assets significantly growing 52.8% to RMB 5.42 billion Asset Structure | Asset Item | June 30, 2025 (Thousands of RMB) | % of Total | Change from Beginning of Year % | | :--- | :--- | :--- | :--- | | Property, Plant and Equipment | 21,720,292 | 59.4% | -2.4% | | Receivables and Contract Assets | 6,810,439 | 18.6% | +2.8% | | Cash and Bank Balances | 2,476,599 | 6.8% | +38.1% | | Other Assets | 5,573,926 | 15.2% | -5.1% | | **Total Assets** | **36,581,356** | **100.0%** | **+0.4%** | - Days sales outstanding for receivables increased from **193 days** in the prior year period to **248 days**, primarily due to stable net receivables despite a decrease in revenue[78](index=78&type=chunk)[79](index=79&type=chunk) - Goodwill increased from zero to **RMB 174 million** due to the acquisition of the Malaysian company[86](index=86&type=chunk) - Total overseas assets reached **RMB 5.42 billion**, a **52.8%** increase from the beginning of the year, raising their share of total assets from **9.7%** to **14.8%**[67](index=67&type=chunk) [Liability Analysis](index=38&type=section&id=3.10%20Liabilities%20%28Overview%29) Total liabilities slightly increased 1.1% to RMB 25.25 billion, with interest-bearing borrowings at RMB 21.22 billion, accounting for 84.0%; debt structure optimized with unsecured borrowings increasing to 66.6%, while payables decreased 6.3% Liability Structure | Liability Item | June 30, 2025 (Thousands of RMB) | % of Total | Change from Beginning of Year % | | :--- | :--- | :--- | :--- | | Interest-bearing Bank and Other Borrowings | 21,224,692 | 84.0% | +1.5% | | Payables and Bills Payable | 2,244,433 | 8.9% | -6.3% | | Other Payables and Accrued Expenses | 1,001,932 | 4.0% | +13.0% | | **Total Liabilities** | **25,253,610** | **100.0%** | **+1.1%** | - The proportion of unsecured interest-bearing bank and other borrowings increased from **61.6%** at the beginning of the year to **66.6%**, with a corresponding decrease in the secured portion, indicating optimized financing structure[92](index=92&type=chunk) [Shareholders' Equity](index=41&type=section&id=3.17%20Shareholders%27%20Equity) As of June 30, 2025, total equity decreased 1.1% to RMB 11.33 billion, primarily due to dividend distribution and other equity changes, partially offset by profit for the period Changes in Equity | Item | Amount (Thousands of RMB) | | :--- | :--- | | As of December 31, 2024 | 11,458,350 | | Profit for the Period | 35,490 | | Dividend Distribution | -132,874 | | Other Equity Changes | -33,220 | | **As of June 30, 2025** | **11,327,746** | - The company distributed the final dividend for the year 2024 of **HKD 0.045 per share** on July 2, 2025[101](index=101&type=chunk) [Capital Management, Capital Expenditure, and Risk Management](index=42&type=section&id=4%E3%80%81Capital%20Management) The company maintains prudent capital management, despite profitability metrics deteriorating with ROAE at 0.6%, while the gearing ratio remains stable at 69.0%; net capital expenditure significantly decreased 90.3% to RMB 384 million, and risk management focuses on foreign exchange and liquidity Key Financial Ratios | Metric | First Half 2025 | First Half 2024 | | :--- | :--- | :--- | | Return on Average Equity | 0.6% | 4.9% | | Return on Average Assets | 0.2% | 1.6% | | Gearing Ratio (Period-end) | 69.0% | 68.7% | - Capital expenditure in the first half was **RMB 825 million**, a significant **81.1% YoY** decrease; net capital expenditure after deducting second-hand equipment sales was **RMB 384 million**, a **90.3% YoY** decrease[109](index=109&type=chunk) - The company hedges foreign exchange risk through derivative financial instruments and manages liquidity risk by optimizing financing structure and maintaining cash positions[111](index=111&type=chunk)[112](index=112&type=chunk) [Significant Investments and Human Resources](index=44&type=section&id=9%E3%80%81Significant%20Investments%2C%20Acquisitions%20or%20Disposals) The Group's key strategic move was acquiring an 80% stake in TH Tong Heng Machinery Sdn. Bhd. in Malaysia, deepening overseas expansion, while total employees decreased, and the 2024 equity incentive plan continued to retain core talent - In May 2025, the Group completed the acquisition of an **80%** equity stake in TH Tong Heng Machinery Sdn. Bhd. in Malaysia for approximately **MYR 171 million** (approximately **RMB 290 million**), which constitutes a discloseable transaction[116](index=116&type=chunk)[117](index=117&type=chunk)[118](index=118&type=chunk) - As of June 30, 2025, the Group's total number of employees was **4,317**, a decrease from **5,346** in the prior year period[127](index=127&type=chunk) - During the reporting period, the company did not grant new options or shares under the 2024 Share Option Scheme and Restricted Share Award Scheme, but some lapsed due to employee departures and other reasons[129](index=129&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk) [Future Outlook](index=50&type=section&id=13%E3%80%81Future%20Outlook) For the second half of 2025, the Group will continue its dual-track strategy, focusing on lean operations, customer marketing, and asset optimization domestically, while pursuing a 'deepen existing, expand emerging' approach overseas, cautiously exploring new markets in Africa, South America, and Asia to expand its international footprint - Domestic Strategy: Focus on lean operations, enhancing asset full lifecycle value through deepened customer marketing, industry solution development, and optimized asset allocation[135](index=135&type=chunk) - Overseas Strategy: Adopt a dual-driven model of 'deepening existing countries' and 'expanding into emerging markets', implementing the '3+3+3' overseas development strategy[135](index=135&type=chunk) - New Market Expansion: The next step will focus on evaluating and deploying in regions with development potential, such as Africa, South America, and Asia[135](index=135&type=chunk) Other Significant Matters [Disclosure of Interests](index=51&type=section&id=Disclosure%20of%20Interests) The report details the shareholdings of directors, chief executives, and major shareholders as of June 30, 2025, with controlling shareholder Far East Horizon holding approximately 47.22% of total interests, and several directors holding shares via in-specie distributions or equity incentive plans - Controlling shareholder Far East Horizon Limited directly holds **1,333,247,413 shares** (**41.70%**) and indirectly holds **176,600,000 shares** (**5.52%**) through controlled corporations, totaling approximately **47.22%** of interests[145](index=145&type=chunk) - Several directors and chief executives, including Kong Fanxing, Zhan Jing, and Tang Li, hold shares or related interests in the company, with some interests derived from Far East Horizon's in-specie distribution and the company's equity incentive plan[136](index=136&type=chunk)[138](index=138&type=chunk) [Corporate Governance](index=56&type=section&id=Corporate%20Governance) The company largely complied with the Corporate Governance Code, with one deviation where the Chairman and several committee chairmen were absent from the AGM due to work commitments, and directors confirmed compliance with the standard code for securities transactions - The company deviated from Rule F.2.2 of the Corporate Governance Code, as the Chairman of the Board and several committee chairmen were unable to attend the Annual General Meeting due to other work commitments[148](index=148&type=chunk)[149](index=149&type=chunk) - The company has established an Audit Committee, which reviewed this interim report[153](index=153&type=chunk)[154](index=154&type=chunk) [Dividends and Related Party Transactions](index=58&type=section&id=Other%20Information) The Board recommended no interim dividend for the six months ended June 30, 2025, and the company entered into a three-year cooperation framework agreement with controlling shareholder Far East Horizon for mutual services, constituting continuing connected transactions - The Board recommended no interim dividend for 2025 (prior year period: **HKD 0.05 per share**)[156](index=156&type=chunk) - The company entered into a cooperation framework agreement with controlling shareholder Far East Horizon, involving the Group providing engineering technical and leasing services to Far East Horizon (annual cap **RMB 141 million**) and Far East Horizon providing consulting services to the Group (annual cap **RMB 25 million**)[158](index=158&type=chunk) Condensed Interim Consolidated Financial Statements [Independent Review Report](index=61&type=section&id=Independent%20Review%20Report) Ernst & Young, the auditor, reviewed the Group's interim financial information for the six months ended June 30, 2025, concluding that it was prepared in all material respects according to HKAS 34 - Ernst & Young issued an **unmodified review conclusion** on the interim financial information[166](index=166&type=chunk) [Principal Financial Statements](index=62&type=section&id=Principal%20Financial%20Statements) The financial statements detail the Group's operating results, financial position, and cash flows, showing decreased revenue and profit, stable asset/liability sizes with structural changes like increased overseas assets, and net cash inflows from operations despite investment and financing outflows Summary of Condensed Interim Consolidated Cash Flow Statement | Item | For the Six Months Ended June 30, 2025 (Thousands of RMB) | | :--- | :--- | | Net Cash Flows from Operating Activities | 1,780,366 | | Net Cash Flows Used in Investing Activities | (861,560) | | Net Cash Flows Used in Financing Activities | (519,592) | | **Net Increase in Cash and Cash Equivalents** | **399,214** | | **Cash and Cash Equivalents at End of Period** | **2,176,580** | [Summary of Notes to the Financial Statements](index=70&type=section&id=Notes%20to%20the%20Financial%20Statements) The notes provide detailed explanations for key financial statement items, including business combinations (TH Tong Heng Machinery acquisition and goodwill), segment reporting (overseas growth), financial instruments (receivables, borrowings, derivatives), and related party transactions - Note 32 discloses that the acquisition of TH Tong Heng Machinery Sdn. Bhd. generated **RMB 174 million** in goodwill and recognized a contingent consideration financial liability of **RMB 73.94 million**[283](index=283&type=chunk)[285](index=285&type=chunk) - Note 4 discloses that total overseas assets reached **RMB 5.42 billion**, accounting for **14.82%** of total assets, a significant increase from **9.74%** at the beginning of the year[190](index=190&type=chunk) - Note 26 discloses that the Group's total interest-bearing bank and other borrowings amounted to **RMB 21.22 billion**, of which **RMB 6.77 billion** (**31.9%**) were secured borrowings[259](index=259&type=chunk)[92](index=92&type=chunk) - Notes 19 and 21 disclose that the expected credit loss provision rates for trade receivables and contract assets were **14.06%** and **9.17%** respectively[240](index=240&type=chunk)[248](index=248&type=chunk)

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]