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

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

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 中國龍工控股有限公司 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 03339 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 20,000,000,000 | HKD | | 0.1 | HKD | | 2,000,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 20,000,000,000 | HKD | | 0.1 | HKD | | 2,000,000,000 | 本月底法 ...

Financial Performance - The company achieved a revenue of HKD 11.068 billion for the year ended December 31, 2024, with a net profit of HKD 1.104 billion, representing a year-on-year increase of 58%[8]. - Operating profit increased by 50.62% to RMB 1.232 billion, while EBITDA rose by 36.44% to RMB 1.490 billion[6]. - The company maintained a cash flow from operating activities of RMB 1.48 billion, with total cash and financial assets amounting to RMB 7.773 billion at year-end[8]. - The company’s debt-to-asset ratio improved to 31%, indicating a healthier financial position compared to previous years[8]. - The total revenue for the reporting period was RMB 10,214 million, a decrease of 2.94% compared to RMB 10,523 million in the same period last year[15]. - The net profit for the year reached RMB 1,019 million, an increase of 57.80% from RMB 646 million in the previous year[15]. - The comprehensive gross profit margin improved to 19.56%, up 2.03 percentage points from 17.53% in the same period last year[15]. - Gross profit increased by 8% to RMB 1,998 million in 2024, up from RMB 1,845 million in 2023, with the gross margin rising from 18% to 20%[29]. - Other income rose to RMB 129 million in 2024 from RMB 125 million in 2023, driven by government subsidies and VAT deductions[30]. - The company achieved a significant turnaround in other gains and losses, moving from a loss of RMB 100 million in 2023 to a gain of RMB 57 million in 2024[31]. Sales and Market Position - The domestic sales volume of loaders continues to hold the industry’s top position, while forklifts secured a place among the top three in the industry[9]. - Sales of loaders accounted for 41.23% of total sales, slightly increasing by 0.04 percentage points from the previous year[15]. - The sales revenue of excavators decreased by 16.08% to approximately RMB 1,055 million, primarily due to a shift in pricing strategy[20]. - Export sales increased by 3.76% to RMB 3,190 million, highlighting the company's successful expansion in international markets[16]. - The sales revenue of forklifts reached approximately RMB 3,718 million, a slight increase of 1.61% from RMB 3,659 million last year[19]. - The company aims to enhance its market influence both domestically and internationally to ensure sustainable growth and profitability[17]. Research and Development - The company has increased its investment in R&D, focusing on technology upgrades and the development of new energy products[9]. - The company plans to focus on innovation and product development, emphasizing "green, intelligent, and high-end" R&D principles to enhance competitiveness[37]. Dividends and Reserves - The company plans to distribute a dividend of HKD 0.13 per share, with a payout ratio of 50% of net profit[8]. - The group reported a final dividend of HKD 0.08 per share for the fiscal year ending December 31, 2023, totaling HKD 342 million (approximately RMB 311 million) distributed to shareholders[49]. - The board proposed a final dividend of HKD 0.13 per ordinary share for the fiscal year ending December 31, 2024[50]. - The total distributable reserves of the company as of December 31, 2024, amounted to approximately RMB 7,921 million, an increase from RMB 7,206 million in 2023[55]. Operational Efficiency - Inventory turnover days decreased from 136 to 115 days, showcasing enhanced operational efficiency[6]. - Inventory decreased by 20% to RMB 2,287 million from RMB 2,877 million, reflecting improved inventory management in response to declining sales[33]. - Trade receivables increased by 19% to RMB 2,377 million from RMB 1,995 million, attributed to extended credit terms for high-value products[34]. Governance and Compliance - The company has adopted the standard code of conduct for securities trading as per the listing rules, and all directors confirmed compliance for the year ending December 31, 2024[105]. - The board consists of 8 members, including 4 executive directors, 1 non-executive director, and 3 independent non-executive directors[107]. - The company has established a risk management and internal control system, which is regularly reviewed by the audit committee[114]. - The company emphasizes the importance of independent non-executive directors in providing objective opinions for effective governance[111]. - The company has mechanisms in place to ensure that any director with a conflict of interest abstains from discussions and votes on related matters[123]. Environmental, Social, and Governance (ESG) - The company is committed to improving environmental performance and reducing pollution during production processes[75]. - The company aims to become a "respected global leader in engineering machinery operations" and is dedicated to sustainable development and social responsibility[146]. - The ESG governance structure consists of the Board of Directors, an ESG working group, and executive departments, ensuring comprehensive oversight and management of ESG-related activities[147]. - The company has established insider information disclosure procedures to ensure timely assessment of matters that may significantly impact stock prices[127]. - The company emitted 214,336.4 tons of CO2, 0.43803 tons of methane, and 0.05776 tons of nitrous oxide in 2024[158]. - The company discharged 562,349 tons of wastewater, achieving a 100% compliance rate with GB/T 31962-2015 standards[158]. - The company has adopted the ISO 14001 environmental management system and set emission reduction targets in response to climate change policies[165]. Employee Relations - Employee satisfaction regarding the working environment reached 99%, with the company adhering to strict occupational health and safety regulations[171]. - The company provides various employee benefits, including holiday bonuses, maternity benefits, and health check-ups, to ensure a supportive work environment[166]. - The company conducts regular training programs to enhance employee skills and knowledge, focusing on professional development and leadership training[172]. Supplier Management - The company has established a strict supplier management system, ensuring that all products must sign a technical agreement before procurement to control quality from the source[181]. - The company emphasizes supplier risk identification and assessment, implementing necessary supervision and inspection of supplier production sites[178]. - The company has set up a quality information reporting platform to ensure timely processing of quality information and has created a quality case manual for internal sharing[185]. Risk Management - The company faces market risks due to potential declines in demand for its products in the engineering machinery industry, which has entered a relatively stable period after years of rapid growth[90]. - The group’s receivables account for 18% of total assets, indicating significant exposure to credit risk influenced by overall economic conditions[196]. - Management's assessment of expected credit losses involves significant judgments and assumptions, including customer payment patterns and macroeconomic factors[196].

Financial Performance - For the fiscal year ending December 31, 2024, the total revenue was RMB 10,213,556, a decrease of 2.9% compared to RMB 10,522,925 in 2023[4] - Gross profit increased to RMB 1,998,114, representing a growth of 8.3% from RMB 1,844,980 in the previous year[4] - The net profit for the year was RMB 1,018,639, up 57.7% from RMB 645,544 in 2023[5] - Basic and diluted earnings per share rose to RMB 0.24, compared to RMB 0.15 in the prior year, reflecting a 60% increase[5] - The company reported a total comprehensive income of RMB 1,033,086, compared to RMB 605,216 in the previous year, marking a significant increase[7] - The total revenue for the reporting period was RMB 10,214 million, a decrease of RMB 309 million or 2.94% compared to RMB 10,523 million in the same period last year[57] - Net profit for the year reached RMB 1,019 million, an increase of RMB 373 million or 57.80% compared to RMB 646 million in the previous year[57] Revenue Breakdown - Total revenue for the engineering machinery segment reached RMB 10,213,556 thousand, with a segment profit of RMB 1,041,850 thousand[24] - Revenue from wheel loaders was RMB 4,211,545 thousand, accounting for 41.2% of total revenue, while excavators generated RMB 1,055,621 thousand, representing 10.3%[26] - Revenue from mainland China was RMB 7,023,569 thousand, a decrease from RMB 7,448,464 thousand in the previous year, while revenue from overseas increased to RMB 3,189,987 thousand from RMB 3,074,461 thousand[28] - Sales of wheel loaders accounted for 41.23% of total sales, slightly up from 41.19% in the previous year[57] - Export sales increased by 3.76% to RMB 3,190 million, partially offsetting the decline in domestic sales[58] Expenses and Investments - Research and development expenses were RMB 447,511, slightly up from RMB 437,700 in 2023, indicating continued investment in innovation[4] - Capital expenditures for the year were RMB 68,549 thousand, which included the acquisition of property, plant, and equipment[24] - Capital expenditures for the period amounted to approximately RMB 69 million, down from RMB 152 million in 2023, aligning with the group's strategic transformation[68] Assets and Liabilities - Total assets decreased to RMB 12,463,367 from RMB 12,480,883 in 2023, showing a marginal decline[8] - Current liabilities decreased to RMB 4,712,868 from RMB 5,591,403, indicating improved financial stability[9] - The company’s net asset value rose to RMB 10,704,093 from RMB 9,981,520, reflecting a solid financial position[9] - Total assets amounted to RMB 15,474,995 thousand, while total liabilities were RMB 4,770,902 thousand[24] - Total assets amounted to RMB 15,623,542 thousand, with total liabilities at RMB 5,642,022 thousand[25] Trade Receivables and Inventory - Trade receivables increased to RMB 2,377,319 from RMB 1,994,901, suggesting growth in sales and credit extension[8] - Trade receivables increased significantly from RMB 1,995 million to RMB 2,377 million, attributed to extended credit terms for high-value products[76] - The company's inventory decreased to RMB 2,287,310,000 in 2024 from RMB 2,876,507,000 in 2023, a reduction of 20.5%[37] Dividends and Shareholder Information - The proposed final dividend per ordinary share for 2024 is HKD 0.13, an increase from HKD 0.08 in 2023, totaling RMB 513,514,000 compared to RMB 310,513,000 in the previous year[33] - The board proposed a final dividend of HKD 0.13 per share for the year ending December 31, 2024, subject to shareholder approval[94] - There was no interim dividend paid during the year[90] Financial Standards and Compliance - The company has adopted revised Hong Kong Financial Reporting Standards, with no significant impact on its financial position or performance[19] - The company has not engaged in supplier financing arrangements, thus the related revisions do not affect its financial statements[19] - The company will apply new and revised Hong Kong Financial Reporting Standards upon their effective date, with no expected significant impact[22] Future Outlook and Strategy - The group anticipates a rebound in domestic demand for construction machinery, supported by government policies aimed at boosting consumption and investment[78] - The company aims to enhance its product offerings with a focus on green, intelligent, and high-end development, while expanding marketing channels and improving operational efficiency[79] - The company aims to strengthen its influence in both domestic and international markets to ensure sustainable growth and profitability[59]

Financial Performance - For the six months ended June 30, 2024, the revenue was RMB 5,360,093 thousand, a decrease of 6.39% compared to RMB 5,726,128 thousand for the same period in 2023[6]. - Operating profit increased by 52.66% to RMB 610,402 thousand, up from RMB 399,834 thousand in the previous year[6]. - EBITDA rose by 38.63% to RMB 740,248 thousand, compared to RMB 533,956 thousand in the prior period[6]. - Net profit attributable to equity holders of the parent increased by 49.11% to RMB 458,353 thousand, up from RMB 307,399 thousand[6]. - Basic earnings per share increased by 57.14% to RMB 0.11, compared to RMB 0.07 in the previous year[6]. - The gross profit margin improved to 18.46%, up from 16.49% in the same period last year, reflecting a 1.97% increase[6]. - The net profit margin increased to 8.55%, up from 5.37%, representing a 3.18% improvement[6]. - Total comprehensive income for the period was RMB 461,221 thousand, compared to RMB 267,799 thousand in the previous year, reflecting significant growth[12]. - The operating profit for the engineering machinery sales segment was RMB 511,766 thousand, while the financial investment segment contributed RMB 50,561 thousand, leading to a total profit before tax of RMB 591,053 thousand[28]. - The company reported a pre-tax profit of RMB 132,545 for the six months ended June 30, 2024, compared to RMB 72,266 for the same period in 2023, marking an increase of approximately 83.5%[37]. Assets and Liabilities - Non-current assets totaled RMB 3,307,777 thousand as of June 30, 2024, an increase of 5.2% from RMB 3,142,659 thousand as of December 31, 2023[13]. - Current assets decreased to RMB 11,712,014 thousand, down 6.2% from RMB 12,480,883 thousand as of December 31, 2023, primarily due to a reduction in inventory[13]. - Total liabilities decreased to RMB 4,830,734 thousand, down 13.6% from RMB 5,591,403 thousand as of December 31, 2023[14]. - The company's equity increased to RMB 10,132,228 thousand as of June 30, 2024, compared to RMB 9,981,520 thousand as of December 31, 2023, reflecting a growth of 1.5%[15]. - Trade receivables rose to RMB 2,520,778 thousand, an increase of 26.3% from RMB 1,994,901 thousand as of December 31, 2023[13]. - The total amount of other payables decreased to RMB 683,765,000 from RMB 793,904,000, indicating a reduction of approximately 14%[52]. - The total liabilities as of June 30, 2024, amounted to RMB 4,090,686, a slight increase from RMB 4,090,686 as of December 31, 2023[65]. Cash Flow - Net cash flow from operating activities was RMB 316,244 thousand for the six months ended June 30, 2024, a significant decrease from RMB 918,814 thousand for the same period in 2023[21]. - Cash flow from investing activities showed a net outflow of RMB 528,162 thousand, compared to an inflow of RMB 742,576 thousand in the previous year[22]. - The net cash and cash equivalents decreased by RMB 496,092 thousand, down from an increase of RMB 1,642,075 thousand in the same period last year[22]. - The total cash and cash equivalents, including time deposits, decreased to RMB 2,979,841,000 from RMB 3,470,777,000, reflecting a decline of approximately 14%[51]. - The company’s financing activities resulted in a net cash outflow of RMB 284,174 thousand, compared to RMB 19,315 thousand in the same period last year[22]. Inventory and Receivables - Inventory turnover days decreased by 11 days to 110 days, while trade payables turnover days increased by 23 days to 157 days[6]. - Inventory decreased to RMB 2,397,703 thousand, down 16.7% from RMB 2,876,507 thousand as of December 31, 2023[13]. - The total inventory as of June 30, 2024, was RMB 2,397,703, down from RMB 2,876,507 as of December 31, 2023, indicating a decrease of about 16.7%[40]. - Trade receivables increased to RMB 3,145,337 as of June 30, 2024, compared to RMB 2,559,621 as of December 31, 2023, representing an increase of approximately 22.9%[41]. Corporate Governance and Strategy - The board of directors has maintained high standards of corporate governance and has complied with the relevant corporate governance codes, with some deviations noted[96][97][101]. - The company is focusing on reducing costs and improving operational efficiency in response to the declining revenue trends observed in the first half of 2024[59]. - The company aims to enhance its focus on the engineering machinery sector, particularly in the production of loaders, forklifts, excavators, and road machinery, while expanding overseas market channels[95]. - The company has committed to enhancing corporate governance and transparency while participating in social welfare initiatives[105]. - The company has strengthened its internal control system, focusing on procurement, supply chain management, and quality improvement[103]. Employee and Management - The total remuneration paid to key management personnel for the six months ended June 30, 2024, was RMB 8,909,000, a decrease from RMB 9,430,000 in the same period of 2023, indicating a reduction of 5.5%[60]. - The total short-term employee benefits for the six months ended June 30, 2024, was RMB 8,804,000, down from RMB 9,344,000 in the same period of 2023, representing a decline of 5.8%[60]. - The company employed approximately 6,932 employees as of June 30, 2024[114]. Market and Sales - Sales in mainland China accounted for RMB 3,892,804 thousand, while sales outside mainland China were RMB 1,467,289 thousand for the six months ended June 30, 2024[29]. - Sales of wheel loaders accounted for 40.4% of total machinery sales, generating RMB 2,160,912, while forklift sales contributed 38.4% with RMB 2,058,326, indicating a shift in product demand[32]. - Sales revenue from the forklift segment grew by 6.36% to RMB 2,058 million, accounting for 38.40% of total revenue[81]. - The sales revenue from wheel loaders contributed 40.31% of total revenue, amounting to RMB 2,161 million, a decline of 10.74% year-on-year[80]. - Excavator sales revenue decreased by 24.64% to RMB 506 million, representing 9.45% of total revenue, primarily due to reduced construction activity[82]. Other Financial Metrics - The company reported a significant increase in financial asset investment returns, amounting to RMB 304 thousand, compared to RMB 89 thousand in the previous year[22]. - Other income increased significantly by 170.10% to approximately RMB 64 million, compared to RMB 24 million in the same period of 2023, driven by the implementation of the VAT input tax credit policy for high-tech enterprises starting in the second half of 2023[91]. - Financial asset impairment losses turned positive, shifting from a loss of approximately RMB 39.6 million in the first half of 2023 to a gain of RMB 22.5 million in the same period of 2024, attributed to improved recovery of previously written-off high-risk receivables[92].

Revenue and Sales Performance - Revenue for the six months ended June 30, 2024, was RMB 5,360,093 thousand, a decrease of 6.4% compared to RMB 5,726,128 thousand in the same period of 2023[2] - Revenue from external customers for engineering machinery sales decreased to RMB 5,360,093 thousand in H1 2024 from RMB 5,726,124 thousand in H1 2023, a decline of 6.4%[12] - Total revenue for the first half of 2024 was RMB 5,360 million, a decrease of 6.39% compared to RMB 5,726 million in the same period of 2023[32] - Revenue decreased by 6.39% to RMB 5,360 million in H1 2024, primarily due to reduced domestic infrastructure and real estate investments and international sales impacted by geopolitical tensions[43] - Revenue from mainland China decreased to RMB 3,892,804 thousand in H1 2024 from RMB 4,234,347 thousand in H1 2023, a decline of 8.1%[14] - Revenue from regions outside mainland China decreased slightly to RMB 1,467,289 thousand in H1 2024 from RMB 1,491,781 thousand in H1 2023[14] - Domestic sales in China decreased by 8.07%, with significant declines in the northwest (-23.69%) and southwest (-25.36%) regions[33] - Overseas sales decreased by 1.68% to RMB 1,467 million, but the proportion of overseas sales increased to 27.37% from 26.05% in the same period last year[33] Profitability and Income - Gross profit increased by 4.8% to RMB 989,459 thousand in 2024 from RMB 944,452 thousand in 2023[2] - Profit before tax for the six months ended June 30, 2024, was RMB 591,053 thousand, a significant increase of 55.7% compared to RMB 379,670 thousand in 2023[3] - Net profit attributable to owners of the parent company was RMB 458,353 thousand, up 49.1% from RMB 307,399 thousand in the same period last year[3] - Total comprehensive income for the period was RMB 461,221 thousand, a 72.3% increase from RMB 267,799 thousand in 2023[4] - Pre-tax profit increased to RMB 591,053 thousand in H1 2024 from RMB 379,670 thousand in H1 2023, a growth of 55.7%[12] - Segment profit for engineering machinery sales increased to RMB 511,766 thousand in H1 2024 from RMB 329,145 thousand in H1 2023[12] - Financial investment segment profit increased to RMB 50,561 thousand in H1 2024 from RMB 14,097 thousand in H1 2023[12] - Net profit increased by 49.19% to RMB 458 million, up from RMB 307 million in the same period last year[32] - Gross profit margin improved to 18.46%, up 2 percentage points from 16.49% in the same period of 2023[32] - Gross profit increased by 4.77% to RMB 989 million in H1 2024, driven by higher export revenue and lower raw material costs[44] - Other income increased significantly to RMB 63,775 thousand in H1 2024 from RMB 23,612 thousand in H1 2023, driven by VAT deductions and government subsidies[17] - Other income surged 170.10% to RMB 64 million in H1 2024, benefiting from VAT deduction policies for high-tech enterprises[45] Assets and Liabilities - Total non-current assets increased to RMB 3,307,777 thousand as of June 30, 2024, from RMB 3,142,659 thousand as of December 31, 2023[5] - Total current assets decreased to RMB 11,712,014 thousand as of June 30, 2024, from RMB 12,480,883 thousand as of December 31, 2023[5] - Total equity increased to RMB 10,132,228 thousand as of June 30, 2024, from RMB 9,981,520 thousand as of December 31, 2023[7] - Total assets decreased to RMB 15,019,791 thousand as of June 30, 2024, from RMB 15,623,542 thousand as of December 31, 2023[15] - Inventory as of June 30, 2024, was RMB 2,397,703 thousand, a decrease from RMB 2,876,507 thousand as of December 31, 2023[23] - Trade receivables as of June 30, 2024, were RMB 3,145,337 thousand, an increase from RMB 2,559,621 thousand as of December 31, 2023[24] - Cash and cash equivalents as of June 30, 2024, were RMB 2,979,841 thousand, down from RMB 3,470,777 thousand as of December 31, 2023[28] - Prepayments, deposits, and other receivables totaled RMB 386,609 thousand as of June 30, 2024, up from RMB 339,039 thousand as of December 31, 2023[26] - The company's trade receivables aged 0 to 90 days increased to RMB 1,633,030 thousand as of June 30, 2024, from RMB 1,029,410 thousand as of December 31, 2023[25] - Trade payables and notes decreased to RMB 3,645,476 thousand from RMB 3,869,222 thousand at the end of 2023[29] - Other payables and accruals decreased to RMB 683,765 thousand from RMB 793,904 thousand at the end of 2023[30] - Cash and bank balances decreased by RMB 491 million to RMB 2,980 million as of June 30, 2024, due to net cash outflows from investing and financing activities[39] - Shareholders' equity increased by 1.51% to RMB 10,132 million as of June 30, 2024, compared to RMB 9,982 million at the end of 2023[40] - Total debt-to-asset ratio improved to 32.54% as of June 30, 2024, down from 36.11% at the end of 2023[41] - Inventory decreased by 16.65% to RMB 2,398 million, reflecting effective inventory management and higher turnover rates[47] - Trade receivables increased by 26.36% to RMB 2,521 million, mainly due to extended credit periods from installment sales[47] Business Segments and Product Sales - The company's main business includes manufacturing and distributing wheel loaders, forklifts, excavators, road rollers, and other construction machinery, as well as providing financial leasing for construction machinery[8] - Sales of wheel loaders accounted for 40.4% of total engineering machinery sales in H1 2024, down from 42.3% in H1 2023[16] - Forklift sales increased to 38.4% of total engineering machinery sales in H1 2024, up from 33.8% in H1 2023[16] - Loader sales accounted for 40.31% of total revenue, a decrease of 1.97 percentage points from 42.28% in 2023[32] - Forklift sales increased by 6.36% to RMB 2,058 million, accounting for 38.40% of total revenue[35] - Excavator sales declined by 24.64% to RMB 506 million, representing 9.45% of total revenue[36] Corporate Governance and Compliance - Independent non-executive directors Qian Shizheng and Wu Jianming have served for over nine years and were re-elected at the 2024 Annual General Meeting[52] - Chairman Li Xinyan concurrently serves as CEO, deviating from corporate governance code C.2.1, but the board deems it appropriate for policy continuity and business stability[53] - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance during the year[54] - The interim results for the six months ended June 30, 2024, were reviewed by external auditor Ernst & Young, with figures consistent with unaudited interim financial data[55] - No purchase, sale, or redemption of the company's listed securities occurred during the six months ended June 30, 2024[56] - No interim dividend was recommended for the six months ended June 30, 2024, consistent with the same period in 2023[21] - No interim dividend was recommended for the six months ended June 30, 2024 (same as the previous year)[57] - The 2024 interim report will be distributed to shareholders and published on the HKEX website[57] Investments and Financing - The company purchased assets (including property, plant, and equipment) worth RMB 35,782 thousand in the six months ended June 30, 2024, down from RMB 76,513 thousand in the same period in 2023[22] - The company provided loans to sales agents amounting to RMB 443,938 thousand as of June 30, 2024, to assist in repaying lease payments[27] Future Outlook and Strategy - The company expects domestic demand for construction machinery to improve in H2 2024, supported by government policies and infrastructure investments[48] - The company is focusing on expanding overseas markets, enhancing product quality, and controlling costs to drive high-quality development[48]

Financial Performance - For the year ended December 31, 2023, the company achieved a revenue of HKD 11.604 billion, with a net profit of HKD 0.712 billion, representing a year-on-year growth of 61%[8]. - The company's operating cash flow was HKD 2.188 billion, and total cash and financial assets at the end of the period amounted to HKD 7.645 billion[8]. - The export revenue reached HKD 3.39 billion, reflecting a 20% increase compared to the previous year[8]. - The gross profit margin improved to 17.53%, up from 16.74% in the previous year, indicating a 0.79% increase[5]. - The basic earnings per share increased to RMB 0.15, a rise of 66.67% from RMB 0.09 in the previous year[5]. - The total revenue for the year was RMB 10,523 million, a decrease of 5.63% compared to RMB 11,150 million in the previous year[11]. - The net profit increased by 61.25% to RMB 646 million, up from RMB 400 million in the previous year[11]. - The comprehensive gross profit margin rose to 17.53%, an increase of 0.79 percentage points from 16.74% in the previous year[11]. Market Position and Strategy - The company has focused on enhancing product research and development, particularly in fuel product improvements and the continuous development of new energy products[8]. - The company aims to enhance product competitiveness and market share despite the ongoing industry downturn[11]. - The company plans to continue expanding its international market presence and improving product competitiveness[12]. - The company aims to expand its sales and service network both domestically and internationally to increase market penetration[61]. Inventory and Receivables Management - The inventory turnover days decreased to 136 days, down from 150 days, indicating improved management efficiency[5]. - Trade receivables decreased by 18.69% to approximately RMB 1,995 million, down from RMB 2,453 million, attributed to reduced domestic sales and slower collection of receivables[29]. - Inventory decreased by 19.90% year-on-year to approximately RMB 2,877 million, down from RMB 3,591 million, due to a more cautious procurement plan[28]. Financial Health and Ratios - The company maintained a debt-to-asset ratio of 36.1%, which is considered healthy and among the best in the industry[8]. - The total asset-liability ratio as of December 31, 2023, was approximately 36.11%, a slight improvement from 36.64% on December 31, 2022[22]. - The company’s net asset value reached RMB 9,981,520,000, up from RMB 9,751,155,000, indicating a growth of approximately 2.4%[150]. Dividends and Reserves - The company plans to distribute a dividend of HKD 0.08 per share, with a payout ratio of 48% of net profit[8]. - As of December 31, 2023, the company's distributable reserves amounted to approximately RMB 7,206 million, an increase from RMB 7,022 million in 2022[40]. - The board proposed a final dividend of HKD 0.08 per share for the fiscal year ending December 31, 2023[38]. Corporate Governance - The board is committed to enhancing corporate governance and transparency to build trust with shareholders and stakeholders[63]. - The board is responsible for reviewing and monitoring compliance with legal and regulatory policies[64]. - The company has adopted a standard code of conduct for securities trading by directors, confirming compliance for the fiscal year ending December 31, 2023[70]. - The board consists of 8 members, including 1 non-executive director and 3 independent non-executive directors, with a gender diversity ratio of approximately 13% female representation[82]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to continuous improvement in environmental performance and product development to reduce pollution and enhance energy efficiency[52]. - The company has established an ESG governance framework consisting of the Board of Directors, an ESG working group, and executive departments to oversee and implement sustainability initiatives[100]. - The company adheres to national environmental regulations and has implemented an ISO 14001 environmental management system to minimize operational environmental impact[108]. - The company emphasizes the importance of stakeholder feedback in shaping its ESG strategies and initiatives[105]. Risk Management - The company has established a risk management and internal control system to identify, assess, and manage significant risks to achieve its business objectives[84]. - The internal audit department is responsible for reviewing the adequacy and effectiveness of the risk management and internal control systems, reporting to the board and audit committee[85]. Employee and Supplier Relations - The company employed approximately 7,204 employees as of December 31, 2023[51]. - Employee satisfaction with the production environment reached 99%[119]. - The company has established a stable and high-quality supply chain system, emphasizing risk identification and assessment of suppliers[122]. Financial Reporting and Compliance - The independent auditor's report confirms that the consolidated financial statements accurately reflect the group's financial position as of December 31, 2023, in accordance with Hong Kong Financial Reporting Standards[137]. - The group has adopted new and revised Hong Kong Financial Reporting Standards, including HKFRS 17 on insurance contracts[163]. - The group measures its investment properties, derivative financial instruments, equity investments, and wealth management and fund investment products at fair value at the end of each reporting period[168].

Financial Performance - For the year ended December 31, 2023, the total revenue was RMB 10,522,925 thousand, a decrease of 5.6% compared to RMB 11,150,234 thousand in 2022[2] - The gross profit for the year was RMB 1,844,980 thousand, slightly down from RMB 1,867,026 thousand in the previous year, resulting in a gross margin of approximately 17.5%[2] - The net profit for the year was RMB 645,544 thousand, representing a significant increase of 61.0% from RMB 400,340 thousand in 2022[3] - Basic and diluted earnings per share increased to RMB 0.15 from RMB 0.09, reflecting a growth of 66.7%[3] - The total comprehensive income for the year was RMB 605,216 thousand, compared to RMB 311,801 thousand in 2022, marking an increase of 94.0%[5] - The group’s profit before tax for 2023 was RMB 772,657,000, an increase of 76.0% compared to RMB 438,924,000 in 2022[23] Revenue Breakdown - Revenue from wheel loaders was RMB 4,334,100, accounting for 41.2% of total revenue, down from RMB 5,213,928 (46.8%) in the previous year[17] - The sales revenue from the domestic market saw significant declines, with the northern region down 14.6% and the southwestern region down 26.9%[56] - Export sales increased by 20.12% year-on-year, reaching approximately RMB 3,074 million, accounting for 29.2% of total sales, up from 23.0% in the previous year[56] - The sales revenue from wheel loaders decreased by 22.18% to approximately RMB 4,058 million, representing about 38.56% of total revenue[58] - The sales revenue from excavators increased by 13.41% to approximately RMB 1,258 million, benefiting from strong export performance[59] - Forklift sales revenue rose by 8.48% to approximately RMB 3,659 million, accounting for about 34.78% of total revenue[60] Expenses and Costs - Research and development expenses decreased to RMB 437,700 thousand from RMB 516,019 thousand, a reduction of 15.2%[2] - Capital expenditures for the year were RMB 152,046, a decrease from RMB 305,895 in 2022, reflecting a reduction of approximately 50.4%[16] - The total cost of sold inventory for 2023 was RMB 8,132,270,000, a decrease of 7.1% from RMB 8,756,277,000 in 2022[21] - The total tax expense for 2023 was RMB 127,113,000, significantly higher than RMB 38,584,000 in 2022, reflecting an increase of 229.5%[22] Assets and Liabilities - Total assets as of December 31, 2023, were RMB 12,480,883 thousand, up from RMB 11,585,891 thousand in 2022, indicating a growth of 7.7%[6] - The company’s total assets as of December 31, 2023, were RMB 15,623,542, compared to RMB 15,390,930 in 2022, indicating an increase of approximately 1.5%[18] - The company’s total liabilities were RMB 5,642,022, slightly up from RMB 5,639,775 in the previous year[18] - The net current assets increased to RMB 6,889,480 thousand from RMB 6,720,890 thousand, reflecting a rise of 2.5%[7] Cash Flow and Financial Position - Cash and cash equivalents increased to RMB 3,470,777,000 in 2023 from RMB 2,031,973,000 in 2022, while total cash and bank balances rose to RMB 4,922,636,000 from RMB 3,688,228,000[47] - The company’s cash deposits for financing leases decreased to RMB 5,809,000 in 2023 from RMB 6,307,000 in 2022, a decline of about 7.9%[31] - The company has a significant amount of cash and bank balances held in foreign currencies, with USD equivalent to RMB 771,973,000 and HKD equivalent to RMB 2,710,000 as of December 31, 2023[49] Shareholder Information - The proposed final dividend for 2023 is RMB 310,513,000, translating to RMB 0.08 per ordinary share, down from RMB 0.10 per share in 2022[24] - The company reported a final dividend of HKD 0.08 per share for the year ending December 31, 2023, subject to shareholder approval[89] - The company paid a final dividend of HKD 0.1 per share based on the 2022 operating performance of HKD 428 million (approximately RMB 375 million)[85] Future Outlook and Strategy - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[17] - The company aims for a GDP growth target of around 5% in 2024, with expectations for infrastructure investment to stabilize domestic demand for engineering machinery[75] - The company plans to enhance its international marketing talent and expand marketing channels to increase market share and improve overall efficiency[75]

Financial Performance - For the six months ended June 30, 2023, the revenue was RMB 5,726,128 thousand, a decrease of 4.68% compared to RMB 6,007,274 thousand for the same period in 2022[6]. - EBITDA for the same period was RMB 399,834 thousand, representing an increase of 270.46% from RMB 107,930 thousand in the previous year[6]. - Net profit attributable to equity holders of the parent company was RMB 307,399 thousand, up 107.79% from RMB 147,937 thousand in the prior year[6]. - Basic earnings per share increased to RMB 0.07, a rise of 133.33% compared to RMB 0.03 in the previous period[6]. - The gross profit margin improved to 16.49%, up from 14.70%, reflecting a 1.79% increase[6]. - The net profit margin also increased to 5.37%, up 2.91% from 2.46% in the previous year[6]. - The total comprehensive income for the period was RMB 267,799 thousand, significantly higher than RMB 85,082 thousand in the same period last year[12]. - The company's pre-tax profit for the period was RMB 379,670, compared to RMB 163,487 for the same period in 2022, showing a significant increase[26][28]. Cash Flow and Assets - The net cash flow from operating activities for the six months ended June 30, 2023, was RMB 918,814 thousand, a significant increase of 60.5% compared to RMB 571,953 thousand for the same period in 2022[19]. - Cash and cash equivalents increased to RMB 3,675,115 thousand as of June 30, 2023, up from RMB 2,031,973 thousand at the end of 2022, marking a growth of 81%[20]. - The total amount of current assets was RMB 11,838,815 thousand, slightly up from RMB 11,585,891 thousand as of December 31, 2022[13]. - The total assets as of June 30, 2023, were RMB 15,130,005, a slight decrease from RMB 15,390,930 as of December 31, 2022[29]. - The total liabilities decreased to RMB 5,485,902 from RMB 5,639,775 at the end of 2022[31]. - The company's total cash and bank balances, including fixed deposits, reached RMB 4,386,303 thousand as of June 30, 2023, compared to RMB 3,688,228 thousand as of December 31, 2022, marking an increase of approximately 18.9%[50]. Inventory and Receivables - Inventory turnover days decreased by 8 days to 121 days, while trade payables turnover days improved by 5 days to 134 days[6]. - The total inventory as of June 30, 2023, was RMB 2,745,318 thousand, down 23.5% from RMB 3,591,273 thousand as of December 31, 2022[40]. - The group’s trade receivables as of June 30, 2023, amounted to RMB 3,090,932 thousand, an increase of 1.2% from RMB 3,054,426 thousand as of December 31, 2022[41]. - The company recorded a decrease in inventory by RMB 853,136 thousand for the six months ended June 30, 2023, compared to a decrease of RMB 880,614 thousand in the same period of 2022[19]. Liabilities and Equity - Current liabilities totaled RMB 5,427,202 thousand, an increase of 11.5% from RMB 4,865,001 thousand as of December 31, 2022[14]. - Total equity as of June 30, 2023, was RMB 9,644,103 thousand, a slight decrease from RMB 9,751,155 thousand as of December 31, 2022[15]. - The company’s total liabilities related to trade payables and notes payable were RMB 301,939 thousand as of December 31, 2022, down from RMB 418,201 thousand, showing a reduction of about 28%[53]. Market Performance - Revenue from external customers in mainland China was RMB 4,234,347, down from RMB 5,007,361 in 2022, indicating a decrease of about 15.4%[29]. - The sales of wheel loaders accounted for 42.3% of total machinery sales, totaling RMB 2,420,800, down from 47.4% in the previous year[32]. - The sales revenue of wheel loaders decreased by 15.0% to RMB 2,421 million, compared to RMB 2,848 million in the same period of 2022[79]. - The sales revenue from overseas markets surged by 49.2% to RMB 1,492 million, partially offsetting the decline in the domestic market[78]. Governance and Management - The company has implemented improvements in its internal control system, focusing on procurement, supply chain management, and financial supervision[100]. - The board believes that the dual role of the CEO and Chairman held by Mr. Li is appropriate for maintaining policy continuity and business stability[98]. - The company emphasizes high transparency and effective communication as key components of its investor relations strategy[101]. - The company has established a performance evaluation and assessment mechanism for its management team to enhance oversight[100]. Employee and Investor Relations - The group employed approximately 7,105 employees as of June 30, 2023[109]. - The company received over 28 visits and communication sessions with domestic and international investors in the first half of 2023[101]. - The company has committed to enhancing its investor relations framework to protect shareholders' rights and ensure timely information disclosure[100].