2025年中期報告 股份代號：1810（港幣櫃台）及 81810（人民幣櫃台） 㛮ᷯ㛡⟳␌灭劳㕉⎌ᷯ㕉䈊灮ⶴ㕾㛮℮⎺䵴䪛www.mi.com ⎌倱Ṧ㈂䵴䪛 www.hkexnews.hk 䘽廋˿↣怺㒉敳奿⛪᷌徲䵴䪛䘽廋ḍ℮⎺応姌灭⋇㊮Ἀ᷏ 昒㕾⸶⟳˾屣⊛⟳␌㐚奃灭⥄怫䓪灮˾ᷯ㛡⟳␌˾ᷯ㛡⟳␌㐚奃灭⥄怫䓪灮˾ 㛅嬲応␌˾᷌ⷄ㕉Ẹ˾応↿⎌ấ堪⦖ẽ堪㟾灮ầấ㛁ℸẽ㇘K悪⌲⇹㛮 ḍ偣㜳灱✉⎱奃㰄䳤⎘ᷯ㛡⟳␌ḍ⌲⇹㛮˿ ⶴ怺㒉㇘塭奘䁼ⶴ⏎パầ暽⬒㕻⻑㓸⎘℮⎺応姌㇘⛪㓸⎘㇘㿑奿㛮℮⎺䵴 䪛䘽廋ḍᷯ㛡⟳␌㘄怉⇲⚲暥䙆偣㜳灱⎱㕾㎒↼奃㰄⽎ℏ屽䌴䘾ᷯ㛡⟳␌ ⌲⇹㛮˿ 偣㜳⎱晪㘄⏓楛㷱嬋⇺䘽姚嘗灭悷 ⮆ ⛲ ✂ 䁼 楛 㷱 䀥 ẖ 䙉 ⏐ ⣩ 怕 㜳 183 嘡⏊ᷯ⾅ 17M㧕灮䘾 ↼ ⏊ 䏈 㚺 朤 応 䞧灱 ㇘ 忑 怐 暽 悷 ⛲ ✂ xiaomi.ecom@computershare.com.hk 䘾↼応䞧灱奃㰄㚶㓻㈂怺㒉㓸⎘㛮℮ ⎺㖧⽎㈂㛋℮⎺応姌䙆㕻⻑灭㓸⎘⌲⇹㛮㇘忑怐㛮℮⎺䵴䪛ầ暽⬒㕻⻑㓸 ⎘灮⎌婠姂䈊㛮灭₇㓸⎘劳㕉䈊 炀㇘₇㓸⎘ᷯ㕉䈊 炀㇘⏎㘄㓸⎘ᷯ˾劳㕉 䈊灮˿ 䚰拆 | ℮⎺岉㕛 | 4 | | --- | - ...

| 公司資料 | | --- | | 財務摘要 | 目錄 | 公司資料 | 2 | | --- | --- | | 財務摘要 | 4 | | 管理層討論及分析 | 5 | | 其他資料 | 17 | | 綜合全面收益表 | 25 | | 綜合財務狀況表 | 27 | | 綜合權益變動表 | 29 | | 綜合現金流量表 | 31 | | 綜合財務資料附註 | 32 | | 釋義及詞彙 | 51 | 公司資料 董事會 執行董事 杜華女士 （董事長兼首席執行官） 孫一丁先生 孫樂先生 非執行董事 孟鈞先生 獨立非執行董事 張文勝先生 鍾明輝先生 授權代表 孫一丁先生 鍾明輝先生 范輝先生 呂濤先生 黃九嶺先生 審核委員會 范輝先生 （主席） 呂濤先生 黃九嶺先生 薪酬委員會 呂濤先生 （主席） 孫一丁先生 黃九嶺先生 提名委員會 杜華女士 （主席） 呂濤先生 范輝先生 聯席公司秘書 註冊辦事處 Cricket Square, Hutchins Drive PO Box 2681 Grand Cayman KY1-1111 Cayman Islands 中國總部及主要營業地點 中國 北京市朝陽區 創遠路28號院 1 ...

[Company Information](index=3&type=section&id=Company%20Information) This section provides an overview of the company's governance structure, including board members and committees, along with essential corporate details [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) This section lists the company's board members, the composition and chairpersons of various committees (audit, nomination, remuneration, risk management), and joint company secretaries and authorized representatives - The Board of Directors includes Executive Directors Mr. Li Chi Hung (Chairman and Chief Executive Officer) and Ms. Lam Suk Yee, Non-executive Director Mr. Leung Ping Kwun, and Independent Non-executive Directors Mr. Tai Kwok Leung, Mr. Kwan Cheuk Kuen, and Dr. Liu Yuk Shing[4](index=4&type=chunk) - The Audit Committee is chaired by Mr. Tai Kwok Leung, the Nomination Committee by Mr. Li Chi Hung, the Remuneration Committee by Mr. Kwan Cheuk Kuen, and the Risk Management Committee by Mr. Li Chi Hung[4](index=4&type=chunk) [Company Basic Information](index=3&type=section&id=Company%20Basic%20Information) This section provides essential company information, including its registered office, headquarters and principal place of business in Hong Kong, Hong Kong share registrar, auditor, principal bankers, company website, and stock code - The company's auditor is BDO Limited, Hong Kong[5](index=5&type=chunk) - The company's principal bankers are Bank of China (Hong Kong) Limited and The Hongkong and Shanghai Banking Corporation Limited[5](index=5&type=chunk) - The company's stock code is **6038**[5](index=5&type=chunk) [Management Discussion and Analysis](index=4&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a comprehensive review of the group's business operations, financial performance, liquidity, and governance, along with future outlook and key corporate disclosures [Business Review](index=4&type=section&id=Business%20Review) The Group, with 30 years of history in Hong Kong, primarily offers one-stop design, build, and maintenance solutions for platform facades and curtain wall projects, navigating a challenging operating environment marked by a weak property market and increased competition - The Group's core business is the design, construction, and maintenance services for platform facades and curtain wall projects in Hong Kong[7](index=7&type=chunk) - The market environment faces challenges including a weak property market, uncertain economic outlook, fewer projects, increased client price sensitivity, and intensified industry competition[7](index=7&type=chunk) - Legal counsel has been engaged to recover the deposit for the acquisition of Mongolian coal mining rights, which was fully impaired last year, with no further adverse impact anticipated[7](index=7&type=chunk) [Outlook](index=5&type=section&id=Outlook) As of June 30, 2025, the Group's order book stands at approximately HK$132.5 million, with additional contracts awarded and bids pending post-period end Overview of Projects on Hand as of June 30, 2025 | Project Type | Location | Expected Completion Date | Estimated Contract Balance (HK$ million) | | :----------- | :--- | :----------- | :----------------------- | | Facade | West Kowloon, Kowloon | December 2025 | 70.6 | | Facade | Sha Tin, New Territories | September 2025 | 33.6 | | Facade | Central and Western District, Hong Kong | June 2027 | 17.5 | | Facade | Shap Sze Heung, New Territories | October 2025 | 10.8 | | **Total** | | | **132.5** | - Prior to the report date, the Group was awarded a platform facade contract valued at approximately **HK$48.1 million**[9](index=9&type=chunk) - The Group is currently bidding for or awaiting results for three large-scale platform facade projects totaling approximately **HK$115.7 million**[9](index=9&type=chunk) [Financial Review](index=6&type=section&id=Financial%20Review) During the period, the Group achieved significant growth in revenue and profit, maintained stable gross profit margins, and substantially reduced trade receivables turnover days, indicating improved operational efficiency and strong liquidity with no bank borrowings Comparison of Key Financial Indicators (Six Months Ended June 30) | Indicator | 2025 (HK$ million) | 2024 (HK$ million) | Change (%) | | :--- | :---------------- | :---------------- | :------- | | Revenue | 239.3 | 196.0 | +22.1% | | Gross Profit | 61.5 | 50.4 | +22.0% | | Profit for the Period | 39.5 | 30.6 | +29.1% | - Gross profit margin remained stable at **25.7%**[11](index=11&type=chunk) - Trade receivables turnover days decreased from approximately **64.3 days** as of December 31, 2024, to approximately **26.4 days** during the period, primarily due to a reduction in average trade receivables[14](index=14&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=7&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) The Group maintains a robust financial position with no bank borrowings and zero gearing, supported by a substantial increase in cash and cash equivalents, demonstrating strong liquidity - As of June 30, 2025, the Group had **no bank borrowings** and a **gearing ratio of zero**[16](index=16&type=chunk)[17](index=17&type=chunk)[18](index=18&type=chunk) - Cash and cash equivalents balance increased by approximately **HK$152.8 million** to approximately **HK$375.5 million** as of June 30, 2025, from approximately HK$222.7 million as of December 31, 2024[17](index=17&type=chunk) - Fixed deposits with original maturity over three months decreased from **HK$112.6 million** as of December 31, 2024, to approximately **HK$1.0 million** during the period[17](index=17&type=chunk) [Employees and Remuneration Policy](index=7&type=section&id=Employees%20and%20Remuneration%20Policy) The Group's employee count decreased to 94, primarily due to natural attrition and reduced project demand, leading to a corresponding decrease in total employee benefit expenses, with remuneration policies based on individual performance - As of June 30, 2025, the Group had **94 employees**, a decrease from 109 employees as of June 30, 2024[19](index=19&type=chunk) - Total employee benefit expenses for the period were approximately **HK$33.9 million**, a decrease from HK$36.1 million in the prior period[19](index=19&type=chunk) - The reduction in employee numbers is primarily attributed to natural attrition and a relatively smaller number of existing projects[19](index=19&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=8&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period or up to the report date - Neither the Company nor its subsidiaries engaged in any purchase, sale, or redemption of the Company's listed securities during the period and up to the report date[20](index=20&type=chunk) [Directors' Interests and Short Positions in Shares, Underlying Shares and Debentures](index=8&type=section&id=Directors'%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures) This section discloses the interests of directors and chief executives in the company's shares and associated corporations, highlighting Mr. Li Chi Hung, Mr. Leung Ping Kwun, and Ms. Lam Suk Yee's collective 74.8% equity stake through controlled corporation Xiangmao Limited Directors' Interests in the Company (As of June 30, 2025) | Name of Director | Capacity | Number of Shares | Percentage of Shareholding | | :------- | :--- | :------- | :--------- | | Mr. Li Chi Hung | Interest in controlled corporation; interest held jointly with another person | 750,000,000 | 74.8% | | Mr. Leung Ping Kwun | Interest in controlled corporation; interest held jointly with another person | 750,000,000 | 74.8% | | Ms. Lam Suk Yee | Spouse's interest | 750,000,000 | 74.8% | - Xiangmao Limited holds **74.8%** of the Company's issued shares, with its share capital owned **75%** by Mr. Li Chi Hung and **25%** by Mr. Leung Ping Kwun[23](index=23&type=chunk) [Major Shareholders](index=10&type=section&id=Major%20Shareholders) This section identifies major shareholders, excluding directors and chief executives, with Xiangmao Limited holding the largest stake of 74.8%, and confirms no share options were granted or exercised during the period Major Shareholders' Interests in the Company (As of June 30, 2025) | Name of Shareholder | Capacity | Number of Shares Held / Position | Percentage of Shareholding | | :------------- | :--- | :----------------- | :--------- | | Xiangmao | Beneficial owner | 750,000,000 | 74.8% | | Ms. Gu Yaping | Spouse's interest | 750,000,000 | 74.8% | - For the six months ended June 30, 2025, no share options were granted or exercised, and there were no outstanding share options[24](index=24&type=chunk) [Pledge of Assets](index=11&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group had no pledged deposits - As of June 30, 2025, the Group had **no pledged deposits**[27](index=27&type=chunk) [Significant Acquisitions and Disposals of Subsidiaries](index=11&type=section&id=Significant%20Acquisitions%20and%20Disposals%20of%20Subsidiaries) During the period, the Group did not undertake any significant acquisitions or disposals of subsidiaries - During the period, the Group had **no significant acquisitions or disposals of subsidiaries**[28](index=28&type=chunk) [Material Investments Held](index=11&type=section&id=Material%20Investments%20Held) The Group held no material investments during the period - The Group held **no material investments** during the period[29](index=29&type=chunk) [Capital Commitments](index=11&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group had no material capital commitments - As of June 30, 2025, the Group had **no material capital commitments**[30](index=30&type=chunk) [Contingent Liabilities](index=11&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had **no material contingent liabilities**[31](index=31&type=chunk) [Events After the Reporting Period](index=11&type=section&id=Events%20After%20the%20Reporting%20Period) No events with significant impact on the Group occurred after June 30, 2025, and up to the report date - No events with significant impact on the Group occurred after June 30, 2025, and up to the report date[32](index=32&type=chunk) [Corporate Governance](index=11&type=section&id=Corporate%20Governance) The Company has adopted and complied with the Corporate Governance Code during the period, with the exception of the combined roles of Chairman and Chief Executive Officer held by Mr. Li Chi Hung - The Company has complied with the Corporate Governance Code, except for the combined roles of Chairman and Chief Executive Officer held by Mr. Li Chi Hung, which deviates from the code's requirement for segregation of duties[33](index=33&type=chunk) [Standard of Dealings in Securities by Directors](index=12&type=section&id=Standard%20of%20Dealings%20in%20Securities%20by%20Directors) The Company has adopted the Model Code for Securities Transactions by Directors, and all directors confirmed compliance during the period and up to the report date - All directors confirmed compliance with the Model Code for Securities Transactions by Directors as set out in Appendix C3 of the Listing Rules[34](index=34&type=chunk) [Interim Dividend](index=12&type=section&id=Interim%20Dividend) The Board, after considering the Group's operating results, financial position, and capital requirements, does not recommend an interim dividend for the period - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[36](index=36&type=chunk) - For the six months ended June 30, 2024, an interim dividend of **2.0 HK cents** per share and a special dividend of **4.0 HK cents** per share were paid[69](index=69&type=chunk) [Audit Committee](index=12&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, has reviewed the Group's accounting standards, policies, and the unaudited condensed consolidated interim financial statements for the period - The Audit Committee comprises three independent non-executive directors: Mr. Tai Kwok Leung (Chairman), Mr. Kwan Cheuk Kuen, and Dr. Liu Yuk Shing[37](index=37&type=chunk) - The Audit Committee has reviewed the Group's accounting standards, policies, and the unaudited condensed consolidated interim financial statements for the period[37](index=37&type=chunk) [Condensed Consolidated Statement of Comprehensive Income](index=13&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group achieved significant growth in both revenue and profit, with a corresponding increase in total comprehensive income and strong earnings per share performance Summary of Condensed Consolidated Statement of Comprehensive Income (Six Months Ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :-------------- | :-------------- | :------- | | Revenue | 239,257 | 195,984 | +22.1% | | Gross Profit | 61,528 | 50,377 | +22.1% | | Profit for the Period | 39,462 | 30,593 | +29.0% | | Total Comprehensive Income for the Period | 39,486 | 30,583 | +29.1% | | Basic Earnings Per Share (HK cents) | 3.9 | 3.1 | +25.8% | | Diluted Earnings Per Share (HK cents) | 3.9 | 3.1 | +25.8% | [Condensed Consolidated Statement of Financial Position](index=14&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's net assets increased, with a significant improvement in net current assets driven by a substantial rise in cash and bank balances and a reduction in current liabilities Summary of Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (HK$ thousand) | | :--- | :-------------- | :----------------------- | :------------ | | Non-current Assets | 4,864 | 6,179 | (1,315) | | Current Assets | 483,336 | 482,997 | 339 | | Current Liabilities | 171,724 | 211,984 | (40,260) | | Net Current Assets | 311,612 | 271,013 | 40,599 | | Net Assets | 316,476 | 276,990 | 39,486 | - Cash and bank balances increased from approximately **HK$222.7 million** as of December 31, 2024, to approximately **HK$375.5 million** as of June 30, 2025[40](index=40&type=chunk) - Trade and other receivables, deposits, and prepayments decreased from approximately **HK$64.8 million** as of December 31, 2024, to approximately **HK$23.3 million** as of June 30, 2025[40](index=40&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=16&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity attributable to owners of the Company increased due to profit for the period, with no share option exercises or dividends declared compared to the prior year Summary of Condensed Consolidated Statement of Changes in Equity (Six Months Ended June 30) | Equity Item | January 1, 2025 (HK$ thousand) | Total Comprehensive Income for the Period (HK$ thousand) | June 30, 2025 (HK$ thousand) | | :------- | :-------------------- | :------------------------ | :-------------------- | | Total Equity | 276,990 | 39,486 | 316,476 | - In the first half of 2025, total equity primarily increased due to **profit for the period of HK$39,462 thousand**[43](index=43&type=chunk) - In the first half of 2024, equity changes included **profit for the period of HK$30,593 thousand**, shares issued from share option exercise of **HK$161 thousand**, and dividends declared of **HK$20,020 thousand**[43](index=43&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=17&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, the Group's cash and cash equivalents significantly increased, primarily driven by a substantial rise in net cash from investing activities, despite a decrease in net cash from operating activities Summary of Condensed Consolidated Statement of Cash Flows (Six Months Ended June 30) | Cash Flow Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :----------- | :-------------- | :-------------- | | Net Cash From Operating Activities | 40,106 | 56,344 | | Net Cash From / (Used In) Investing Activities | 114,752 | (43,696) | | Net Cash Used In Financing Activities | (2,080) | (1,659) | | Increase in Cash and Cash Equivalents | 152,778 | 10,989 | | Cash and Cash Equivalents at End of Period | 375,531 | 66,915 | - Investing activities shifted from a net cash outflow in the prior period to a net cash inflow in the current period, which is the primary reason for the significant increase in cash and cash equivalents[45](index=45&type=chunk) [Notes to the Condensed Consolidated Interim Financial Statements](index=18&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section provides detailed explanatory notes to the condensed consolidated interim financial statements, covering general information, accounting policies, segment reporting, and specific financial line items [1. General Information](index=18&type=section&id=1.%20General%20Information) This note outlines the company's registration details, principal place of business, nature of operations, and ultimate controlling entity - The Company was incorporated in the Cayman Islands on November 29, 2016, primarily engaged in the design, construction, and maintenance services for platform facades and curtain wall projects in Hong Kong[46](index=46&type=chunk) - The Company's ultimate controlling company is Xiangmao Limited[46](index=46&type=chunk) [2. Basis of Preparation](index=19&type=section&id=2.%20Basis%20of%20Preparation) This note explains the basis for preparing the condensed consolidated interim financial statements, including accounting standards followed, presentation currency, and review and approval status - The unaudited condensed consolidated interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[48](index=48&type=chunk) - The financial statements are presented in **Hong Kong Dollars** and were reviewed by the Audit Committee and approved by the Board of Directors on August 27, 2025[48](index=48&type=chunk) [3. Summary of Significant Accounting Policies](index=20&type=section&id=3.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the accounting policies adopted for the financial statements and details the adoption of new and revised Hong Kong Financial Reporting Standards and their impact on the Group - The condensed consolidated interim financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value[49](index=49&type=chunk) - The adoption of new and revised Hong Kong Financial Reporting Standards effective January 1, 2025, had **no significant impact** on the Group's results and financial position[51](index=51&type=chunk) - The Board is assessing the potential impact of new or revised Hong Kong Financial Reporting Standards that have been issued but are not yet effective, and it is currently unable to determine whether they will have a significant impact[54](index=54&type=chunk) [4. Segment Reporting](index=22&type=section&id=4.%20Segment%20Reporting) This note clarifies that the Group operates in a single segment, with all revenue and most non-current assets located in Hong Kong, and discloses revenue from major customers - The Group operates in **only one operating segment**, with all revenue derived from Hong Kong and **over 82%** of non-current assets located in Hong Kong[55](index=55&type=chunk) Revenue from Major Customers (Six Months Ended June 30) | Customer | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :-------------- | :-------------- | | Customer I | 205,366 | 127,433 | | Customer II | – | 32,438 | [5. Revenue](index=23&type=section&id=5.%20Revenue) This note details the Group's revenue composition from its primary business activities, including design and build projects and repair and maintenance services Revenue Composition (Six Months Ended June 30) | Revenue Source | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :------- | :-------------- | :-------------- | | Design and Build Projects | 222,505 | 183,080 | | Repair and Maintenance Services | 16,752 | 12,904 | | **Total Revenue** | **239,257** | **195,984** | - Platform facade and related works contributed the majority of revenue from design and build projects, with curtain wall project revenue commencing in the current period[60](index=60&type=chunk) [6. Other Income, Gains and Losses](index=23&type=section&id=6.%20Other%20Income%2C%20Gains%20and%20Losses) This note discloses the Group's other income, gains, and losses, encompassing bank interest income, dividend income, disposal gains, exchange differences losses, and government grants Other Income, Gains and Losses (Six Months Ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :-------------- | :-------------- | | Bank Interest Income | 3,811 | 5,425 | | Dividend Income from Financial Assets at Fair Value Through Profit or Loss | 15 | 12 | | Gain on Disposal | 198 | – | | Exchange Differences Loss | (688) | (567) | | Government Grants | 302 | 1,579 | | **Total** | **3,638** | **6,449** | - Government grants primarily originated from the Construction Innovation and Technology Fund, supporting innovative construction technologies[62](index=62&type=chunk) [7. Profit Before Income Tax](index=24&type=section&id=7.%20Profit%20Before%20Income%20Tax) This note itemizes the expenses deducted in calculating profit before income tax, including auditor's remuneration, cost of inventories, depreciation, and employee benefit expenses Deductions for Profit Before Income Tax (Six Months Ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :-------------- | :-------------- | | Auditor's Remuneration | 300 | 350 | | Cost of Inventories Recognized as Expense | 79,753 | 67,451 | | Depreciation Expense (Property, Plant and Equipment and Right-of-use Assets) | 2,183 | 2,165 | | Employee Benefit Expenses (including Directors' Emoluments) | 33,948 | 36,102 | - Employee benefit expenses decreased, consistent with the trend of reduced employee numbers[64](index=64&type=chunk)[19](index=19&type=chunk) [8. Income Tax Expense](index=25&type=section&id=8.%20Income%20Tax%20Expense) This note details the Group's income tax expense, comprising Hong Kong Profits Tax and PRC Enterprise Income Tax, and explains the applicable tax rates for each Income Tax Expense (Six Months Ended June 30) | Tax Type | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :------- | :-------------- | :-------------- | | Hong Kong Profits Tax | 6,209 | 6,057 | | PRC Enterprise Income Tax | 165 | 2 | | **Tax for the Period** | **6,374** | **6,059** | - Hong Kong Profits Tax rate is **16.5%**, with the first **HK$2,000,000** of assessable profits for qualifying entities under the two-tiered profits tax regime taxed at **8.25%**[66](index=66&type=chunk) - PRC subsidiaries, as small enterprises, are subject to progressive tax rates on assessable profits: the first **RMB1,000,000** is taxed at **5%**, and profits between **RMB1,000,000** and **RMB3,000,000** are taxed at **10%**[67](index=67&type=chunk) [9. Share-based Payments](index=26&type=section&id=9.%20Share-based%20Payments) This note confirms no share-based payment expenses were recognized during the period, representing a decrease compared to the prior year - For the six months ended June 30, 2025, **no share-based payment expenses** were recognized in profit or loss (2024: HK$104,000)[68](index=68&type=chunk) [10. Dividends](index=26&type=section&id=10.%20Dividends) This note confirms the Board's decision not to recommend an interim dividend for the current period and reviews dividend distributions from the prior year - The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025[69](index=69&type=chunk) - For the six months ended June 30, 2024, an interim dividend of **2.0 HK cents** per share and a special dividend of **4.0 HK cents** per share were paid[69](index=69&type=chunk) [11. Earnings Per Share](index=27&type=section&id=11.%20Earnings%20Per%20Share) This note provides the calculation data for basic and diluted earnings per share and explains why they are identical for the current period Earnings Per Share Calculation Data (Six Months Ended June 30) | Indicator | 2025 | 2024 | | :--- | :----- | :----- | | Profit for the Period Attributable to Owners of the Company (HK$ thousand) | 39,462 | 30,593 | | Weighted Average Number of Ordinary Shares for Basic Earnings Per Share (thousand shares) | 1,003,000 | 1,000,074 | | Basic Earnings Per Share (HK cents) | 3.9 | 3.1 | | Diluted Earnings Per Share (HK cents) | 3.9 | 3.1 | - For the six months ended June 30, 2025, diluted earnings per share were identical to basic earnings per share due to the absence of dilutive potential ordinary shares[71](index=71&type=chunk) [12. Property, Plant and Equipment](index=27&type=section&id=12.%20Property%2C%20Plant%20and%20Equipment) This note discloses the Group's purchase and disposal activities related to property, plant, and equipment during the period - For the six months ended June 30, 2025, the Group purchased property, plant, and equipment items totaling approximately **HK$646,000** (2024: HK$305,000)[72](index=72&type=chunk) - For the six months ended June 30, 2025, the Group disposed of property, plant, and equipment items totaling approximately **HK$667,000** (2024: nil)[72](index=72&type=chunk) [13. Contract Assets and Contract Liabilities](index=28&type=section&id=13.%20Contract%20Assets%20and%20Contract%20Liabilities) This note details the Group's contract assets and liabilities, reflecting the progress of design and build contracts and repair and maintenance services Contract Assets (As of June 30) | Item | 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :-------------- | :----------------------- | | Design and Build Contracts | 79,284 | 83,471 | | Repair and Maintenance Services | 5,729 | 1,263 | | **Total Contract Assets (net of loss allowance)** | **81,196** | **80,917** | Contract Liabilities (As of June 30) | Item | 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :-------------- | :----------------------- | | Design and Build Contracts | 107,312 | 133,204 | | Repair and Maintenance Services | 5,811 | 3,950 | | **Total Contract Liabilities** | **113,123** | **137,154** | - Contract liabilities significantly decreased, indicating good project progress and recognized revenue[75](index=75&type=chunk) [14. Trade and Other Receivables, Deposits and Prepayments](index=30&type=section&id=14.%20Trade%20and%20Other%20Receivables%2C%20Deposits%20and%20Prepayments) This note provides a detailed breakdown and aging analysis of trade and other receivables, deposits, and prepayments, showing a substantial reduction in trade receivables and improved collection efficiency Trade and Other Receivables, Deposits and Prepayments (As of June 30) | Item | 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :-------------- | :----------------------- | | Trade Receivables, net | 18,604 | 51,177 | | Retention Receivables, net | 2,052 | 1,632 | | Deposits and Prepayments | 2,649 | 12,024 | | **Total** | **23,305** | **64,833** | Aging Analysis of Trade Receivables (As of June 30) | Aging | 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :-------------- | :----------------------- | | 0 to 30 days | 15,136 | 42,543 | | 31 to 60 days | 1,238 | 1,244 | | 61 to 90 days | 720 | 1,568 | | Over 90 days but less than one year | 688 | 1,240 | | Over one year | 822 | 4,582 | | **Total** | **18,604** | **51,177** | - Credit terms granted to trade debtors range from **20 to 60 days**[78](index=78&type=chunk) [15. Trade and Other Payables](index=32&type=section&id=15.%20Trade%20and%20Other%20Payables) This note presents the composition and aging analysis of trade and other payables, indicating a decrease in both trade payables and accrued staff costs Trade and Other Payables (As of June 30) | Item | 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :-------------- | :----------------------- | | Trade Payables | 23,201 | 38,467 | | Retention Payables | 12,513 | 10,686 | | Accrued Staff Costs | 7,622 | 14,984 | | Other Payables and Accruals | 5,649 | 5,578 | | **Total** | **48,985** | **69,715** | Aging Analysis of Trade Payables (As of June 30) | Aging | 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :-------------- | :----------------------- | | 0 to 30 days | 10,611 | 27,252 | | 31 to 60 days | 2,265 | 6,698 | | 61 to 90 days | 2,025 | 2,536 | | Over 90 days | 8,300 | 1,981 | | **Total** | **23,201** | **38,467** | - Credit terms granted by suppliers and subcontractors typically range from **0 to 60 days**[80](index=80&type=chunk) [16. Share Capital](index=34&type=section&id=16.%20Share%20Capital) This note details the Company's authorized and issued share capital, indicating a stable capital structure Share Capital Structure (As of June 30) | Item | Number of Shares | Total Amount (HK$ thousand) | | :--- | :------- | :------------ | | Authorized Share Capital (Ordinary shares of HK$0.01 each) | 10,000,000,000 | 100,000 | | Issued and Fully Paid Share Capital (Ordinary shares of HK$0.01 each) | 1,003,000,000 | 10,030 | [17. Guarantees](index=34&type=section&id=17.%20Guarantees) This note discloses the total value of performance guarantees provided by the Group for construction contracts, which decreased during the period Total Value of Performance Guarantees (As of June 30) | Item | 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :-------------- | :----------------------- | | Total Value of Performance Guarantees Issued in Favor of Customers | 77,062 | 106,962 | - The total value of performance guarantees significantly decreased, reflecting the completion of certain contracts or the expiry of guarantee periods[85](index=85&type=chunk) [18. Litigation](index=35&type=section&id=18.%20Litigation) This note describes the litigation and claims encountered by the Group in its ordinary course of business and assesses their potential impact on its financial position - The Group has been subject to certain lawsuits and claims in the ordinary course of its business, all of which have been resolved[87](index=87&type=chunk) - The Directors assessed the likelihood of a significant outflow of resources to settle these claims as remote, and therefore no provision has been made for them[87](index=87&type=chunk) [19. Related Party Transactions](index=35&type=section&id=19.%20Related%20Party%20Transactions) This note discloses the Group's related party transactions, primarily concerning compensation for key management personnel Compensation of Key Management Personnel (Six Months Ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :-------------- | :-------------- | | Salaries, Allowances and Other Benefits | 6,441 | 6,943 | | Defined Contribution Retirement Plan Contributions | 63 | 72 | | **Total** | **6,504** | **7,015** | - Total compensation for key management personnel decreased during the period[89](index=89&type=chunk)

Sales Performance - In the first half of 2025, the Group recorded pre-sales of properties and car park units amounting to approximately HK$451.1 million, an increase from HK$416.1 million in the corresponding period of 2024[21][23] - The pre-sold saleable gross floor area (GFA) was 9,162 sq.m., significantly higher than 3,800 sq.m. in the same period last year[21][23] - The average selling price (ASP) of pre-sold properties was approximately HK$49,126.8 per sq.m., down from approximately HK$108,763.2 per sq.m. in the same period of 2024[54] - Revenue from property sales (excluding car park sales) was approximately HK$492.7 million, with a recognized ASP of approximately HK$87,982.1 per sq.m. for the six months ended June 30, 2025[58] - The Group recorded a total pre-sale amount of approximately HK$451.1 million for properties and parking spaces, an increase of about 8.4% compared to the same period last year[57] - The total pre-sold gross floor area (GFA) was approximately 9,162 sq.m., representing a significant increase of about 141.1% from approximately 3,800 sq.m. in the previous year[57] Rental Income and Investment Properties - Rental income from investment properties was approximately HK$105.4 million, down 7.9% from HK$114.4 million in the first half of 2024[21][24] - The average monthly rental income from operating investment properties was approximately HK$64.8 per sq.m., down from HK$68.8 per sq.m. in the same period last year[63] - The total fair value of the Group's investment properties was approximately HK$5,926.4 million, accounting for about 39.3% of the Group's total asset value[62] - The Group recorded a fair value loss of approximately HK$635.1 million on investment properties for the six months ended June 30, 2025, compared to a loss of approximately HK$79.8 million in the same period last year[64] - The Group generated rental income of approximately HK$105.4 million for the six months ended June 30, 2025, representing a decrease of approximately 7.9% from HK$114.4 million for the same period in 2024[66] Financial Performance - The Group's total revenue for the six months ended June 30, 2025, was approximately HK$737.3 million, an increase of approximately 62.6% compared to HK$453.5 million for the same period in 2024[79] - Income from property sales was approximately HK$493.4 million, accounting for approximately 66.9% of total revenue, with a significant increase of approximately 160.6% compared to the previous year[79][82] - The Group recorded a gross loss of approximately HK$19.5 million, improving from a gross loss of approximately HK$102.2 million in the same period of 2024, resulting in a gross loss margin of approximately 2.6%[92] - The company reported a loss for the period of HK$625,520,000, which included a loss attributable to non-controlling interests of HK$124,790,000[199] - The total comprehensive loss for the period was HK$586,572,000, a decrease from HK$716,626,000 in 2024, showing an improvement in overall financial health[193] Development Projects and Land Bank - The land bank for 16 projects was approximately 397,015 sq.m., with a focus on the Guangdong-Hong Kong-Macau Greater Bay Area and first-tier cities in China[21][25] - The Group has a total of 16 projects in various stages of development, with an estimated net saleable/leasable GFA of approximately 397,015 sq.m. as of June 30, 2025[70] - The land bank includes significant projects in major cities such as Shenzhen (129,792 sq.m.), Shanghai (97,526 sq.m.), and Chengdu (38,325 sq.m.)[74] - The Group plans to continue acquiring land parcels with investment potential, particularly in the Greater Bay Area and Shanghai, leveraging its experience in identifying advantageous opportunities[75] Strategic Focus and Market Conditions - The Group's strategy emphasizes high-quality residential and premium integrated properties, aligning with national standards for "good housing"[26] - The macroeconomic environment remains complex, with the real estate industry still in a slow recovery phase, but signs of stabilization are emerging[26] - The policy focus in the real estate industry has shifted to optimizing new supply and consuming existing inventory, with local governments easing purchase restrictions and lowering mortgage interest rates[29] - The Group is committed to a "steady progress" strategy, focusing on precise market analysis and resource allocation to enhance resilience and asset value[26] Corporate Governance and Shareholder Communication - The Company did not declare an interim dividend for the six months ended 30 June 2025, consistent with the previous year where no dividend was declared[162] - The Company encourages shareholders to attend general meetings and provides mechanisms for them to communicate with the Board[154] - The Company maintains a transparent communication strategy with investors through various channels, including its website[149] - The audit committee reviewed the Group's accounting principles and the interim results for the six months ended June 30, 2025, which were not audited but reviewed by the external auditor[144] Employee and Management Information - The Group's total staff costs for the six months ended June 30, 2025, were approximately HK$89.2 million, a decrease from approximately HK$95.6 million for the same period in 2024, reflecting a reduction in employee headcount from 812 to 718[132][133] - The Group employed 718 employees as of June 30, 2025, with 565 in retail operations and property management, indicating a focus on these divisions[133] - The Group's management believes that having the same individual serve as both chairman and CEO ensures consistent leadership and effective long-term strategy planning[140]

Financial Performance - Total operating revenue for the six months ended June 30, 2025, was RMB 477,143 thousand, a decrease of 4.2% compared to RMB 498,707 thousand in the same period of 2024[17]. - Total operating costs for the same period were RMB 434,715 thousand, down 8.1% from RMB 478,062 thousand year-over-year[17]. - Operating profit for the six months ended June 30, 2025, was RMB 53,612 thousand, a significant recovery from a loss of RMB 51,618 thousand in the prior year[19]. - Net profit for the period was RMB 48,671 thousand, compared to a net loss of RMB 42,171 thousand in the same period of 2024[19]. - Earnings per share for the six months ended June 30, 2025, was RMB 0.05, recovering from a loss of RMB 0.05 per share in the previous year[19]. - The comprehensive income for the period was 48,671,000 RMB, contributing positively to the overall equity position[23]. - The company reported an investment income of RMB 16,041 thousand for the period, significantly higher than RMB 8,273 thousand in the previous year, reflecting improved performance in investments[17]. Assets and Liabilities - As of June 30, 2025, total assets amounted to RMB 3,593,149 thousand, an increase from RMB 3,501,497 thousand as of December 31, 2024, reflecting a growth of approximately 2.62%[11]. - Current assets totaled RMB 2,004,360 thousand, up from RMB 1,930,330 thousand at the end of 2024, indicating an increase of about 3.83%[11]. - Total liabilities decreased to RMB 648,182 thousand from RMB 717,680 thousand, showing a reduction of about 9.66%[14]. - Total liabilities increased to RMB 1,167,767 thousand as of June 30, 2025, compared to RMB 1,107,124 thousand at the end of 2024[16]. - Total equity attributable to shareholders increased to RMB 2,412,403 thousand as of June 30, 2025, from RMB 2,381,448 thousand at the end of 2024[16]. Cash Flow - Cash flow from operating activities generated a net amount of RMB 23,311 thousand, slightly down from RMB 24,934 thousand in the same period of 2024[20]. - The net cash flow from financing activities for the six months ended June 30, 2025, was 105,232,000 RMB, compared to 58,434,000 RMB in 2024, indicating a significant increase of 80%[22]. - The total cash and cash equivalents at the end of the period reached 209,953,000 RMB, a substantial increase from 131,005,000 RMB at the end of June 2024, representing a growth of 60%[22]. Research and Development - Research and development expenses for the six months ended June 30, 2025, were RMB 14,646 thousand, up from RMB 13,025 thousand in the same period of 2024, indicating a focus on innovation[17]. - Research and development expenses increased to RMB 14.6 million in the first half of 2025 from RMB 13.0 million in the same period of 2024, representing 3.1% of total revenue[111]. Market and Business Strategy - The company is focusing on expanding its market presence and enhancing product development strategies to drive future growth[9]. - The company actively adjusted production plans in response to customer needs and market changes during the reporting period[94]. - The company plans to accelerate railway planning and construction, with a focus on high-quality completion of the "14th Five-Year Plan" objectives[103]. Shareholder Information - Major shareholders hold approximately 572,852,774 shares, representing 85.07% of the domestic shares and 63.80% of the total share capital[128]. - The total number of issued domestic shares is 673,380,000, and the total number of issued H shares is 224,460,000 as of June 30, 2025[134]. - The company has adopted an H share incentive plan approved by shareholders on September 13, 2022, aimed at recognizing contributions from eligible participants[136]. Compliance and Governance - The company has complied with all provisions of the Corporate Governance Code during the six months ending June 30, 2025[144]. - The audit committee has reviewed the unaudited interim results for the six months ending June 30, 2025, and has approved the accounting principles and practices adopted by the company[143]. - The board of directors includes at least three independent non-executive directors, in compliance with listing rules[146].

2025 Interim Report 中期報告 INTERIM REPORT 2025 中期報告 CORPORATE PROFILE 公司簡介 China Modern Dairy Holdings Ltd. (the "Company" or "Modern Dairy", stock code: 1117), together with its subsidiaries (the "Group"), is a leading dairy farming operator and raw milk producer in the industry in the People's Republic of China (the "PRC"). We invest in and operate 47 farm companies in Chinese Mainland, spanning 13 provinces and autonomous regions, with approximately 472,000 dairy cows being raised by the end of the current ...

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Financial Performance - Revenue for the six months ended June 30, 2025, was RMB 159.7 million, a decrease of RMB 77.6 million or 32.7% from RMB 237.3 million for the same period in 2024[13] - Revenue from telecommunications infrastructure services was RMB 151.3 million, accounting for 94.7% of total revenue, while revenue from digital solutions services was RMB 8.4 million, making up 5.3% of total revenue[13] - Revenue from telecommunications infrastructure services decreased by 29.9%, while revenue from digital solutions services decreased by 60.8% compared to the previous year[13] - The revenue from telecommunications infrastructure services decreased by RMB 64.5 million to RMB 151.3 million for the six months ending June 30, 2025, a decline of 29.9%[14] - The revenue from digital solutions services fell by RMB 13.1 million to RMB 8.4 million for the same period, primarily due to a decrease in the number of contracts for software solution services[14] - Gross profit decreased from RMB 51.3 million to RMB 26.2 million, a reduction of RMB 25.1 million, mainly due to the decline in revenue from telecommunications infrastructure services and software solution services[17] - The overall gross margin dropped from 21.6% to 16.4%, attributed to the decrease in revenue from higher-margin software solution services[18] - Operating profit decreased to RMB 13,391 thousand for the six months ended June 30, 2025, compared to RMB 25,917 thousand in 2024, reflecting a decline of 48.3%[61] - The company reported a net profit of RMB 4,195 thousand for the six months ended June 30, 2025, down from RMB 18,590 thousand in 2024, representing a decline of 77.5%[61] Cash Flow and Liquidity - Operating cash flow for the six months ending June 30, 2025, was a net outflow of RMB 227.1 million, influenced by an increase in contract assets and trade receivables[26] - Cash and cash equivalents decreased by RMB 87.6 million to RMB 47.4 million as of June 30, 2025, primarily due to cash used in operating activities[27] - Cash and cash equivalents dropped significantly to RMB 47,350 thousand as of June 30, 2025, compared to RMB 134,963 thousand as of December 31, 2024, reflecting a decrease of approximately 64.9%[89] - Total bank borrowings increased by RMB 171.5 million to RMB 545.0 million as of June 30, 2025, compared to RMB 373.5 million at the end of 2024[27] - The debt-to-equity ratio rose to 1.3 times as of June 30, 2025, from 0.9 times at the end of 2024, mainly due to increased average bank borrowings[28] Business Strategy and Operations - The company plans to accelerate its telecommunications infrastructure service layout nationwide and expand its service scale outside Jiangxi Province[10] - The company aims to explore new business models and opportunities in the fields of information technology and artificial intelligence[10] - The company will implement measures such as refined management, cost control, and cash flow management to ensure stable operations[10] - The company announced a reallocation of the net proceeds from its global offering, extending the timeline for the use of these proceeds[10] Employee and Management Information - Employee costs for the six months ending June 30, 2025, totaled RMB 10.5 million, down from RMB 13.0 million for the same period in 2024[39] - The group employed 187 employees as of June 30, 2025, compared to 229 employees a year earlier[39] - The total compensation for key management personnel for the six months ended June 30, 2025, was RMB 1,398 thousand, a decrease from RMB 1,808 thousand in the same period of 2024[102] - The company has adopted all applicable corporate governance code provisions as of June 30, 2025[41] - The board believes that having the same individual serve as both CEO and Chairman is beneficial for unified leadership[42] Shareholder Information - As of June 30, 2025, Mr. Liu Haokong holds 359,444,530 shares, representing 56.16% of the company's equity[48] - Mr. Liu Dingyi owns 39,439,467 shares, accounting for 6.16% of the company's equity[48] - Mr. Liu Dingli possesses 34,099,071 shares, which is 5.33% of the company's equity[48] - The company has established a share option scheme with a maximum issuance limit of 64,000,000 shares, equivalent to 10% of the total shares issued at the time of listing[53] - No share options were granted, agreed to be granted, exercised, cancelled, or lapsed during the six months ending June 30, 2025[54] - The company maintained sufficient public float, with at least 25% of its issued share capital held by the public as of June 30, 2025[57] - The board does not recommend the payment of an interim dividend for the six months ending June 30, 2025[59] Related Party Transactions - The group recorded significant related party transactions, including RMB 150 thousand from Hangzhou Duoba'an Technology Co., Ltd. during the reporting period[103] - As of June 30, 2025, the group has receivables from related parties totaling RMB 1,112 thousand, an increase from RMB 112 thousand as of December 31, 2024[104] - The group has payables to related parties amounting to RMB 10,300 thousand as of June 30, 2025, slightly up from RMB 10,150 thousand as of December 31, 2024[105] - Bank borrowings guaranteed by related parties amounted to RMB 115,119 thousand as of June 30, 2025, compared to RMB 113,147 thousand as of December 31, 2024[106] Assets and Liabilities - Total assets as of June 30, 2025, were RMB 1,416,252 thousand, a slight increase from RMB 1,401,560 thousand as of December 31, 2024[62] - Total liabilities increased to RMB 988,153 thousand as of June 30, 2025, compared to RMB 977,656 thousand as of December 31, 2024[63] - The net book value of property, plant, and equipment as of June 30, 2025, was RMB 23,641,000, down from RMB 33,812,000 in 2024[79] - The net book value of investment properties increased to RMB 31,054,000 as of June 30, 2025, from RMB 18,577,000 in 2024[81] Government Support and Incentives - Other net income increased by RMB 4.8 million to RMB 7.2 million, mainly due to new government incentives related to corporate listing[19] - The group received government subsidies totaling RMB 6,349,000, significantly up from RMB 1,489,000 in the previous year, reflecting recognition for contributions to local high-tech industry development[73]

[Definitions](index=5&type=section&id=First%20Section%20Definitions) [Definitions of Common Terms](index=5&type=section&id=Definitions%20of%20Common%20Terms) This section defines common terms, including stock types, key technologies, and institutional names, for clear report comprehension - The report defines A-shares and H-shares, listed on the SSE STAR Market and HKEX Main Board, respectively[14](index=14&type=chunk)[16](index=16&type=chunk) - Key technical terms include **IGBT** (Insulated Gate Bipolar Transistor), **MOSFET** (Metal-Oxide-Semiconductor Field-Effect Transistor), and **SiC** (Silicon Carbide), which are power semiconductor devices[16](index=16&type=chunk) - **FAO** (Fully Automatic Operation or Unmanned Driving System), **IPD** (Integrated Product Development), and **ROV** (Remotely Operated Underwater Vehicle) are defined as key technologies and methods[14](index=14&type=chunk)[16](index=16&type=chunk) [Company Profile and Key Financial Indicators](index=7&type=section&id=Second%20Section%20Company%20Profile%20and%20Key%20Financial%20Indicators) [Company Basic Information](index=7&type=section&id=I.%20Company%20Basic%20Information) This section provides the company's basic information, including names, addresses, and contact details, with no historical changes in the reporting period - The company's Chinese abbreviation is 時代電氣 (Times Electric), and its English abbreviation is **Times Electric**[17](index=17&type=chunk) - The legal representative is Li Donglin, with both registered and office addresses located at Shidai Road, Shifeng District, Zhuzhou City[17](index=17&type=chunk) [Contacts and Contact Information](index=7&type=section&id=II.%20Contacts%20and%20Contact%20Information) This section provides contact information for the Board Secretary and Securities Affairs Representative for investor inquiries - The Board Secretary is Long Furong, and the Securities Affairs Representative is Xiao Ying[18](index=18&type=chunk) - Contact addresses are at Shidai Road, Shifeng District, Zhuzhou City, phone number is **0731-28498028**, and email is **ir@csrzic.com**[18](index=18&type=chunk) [Information Disclosure and Document Custody Location Changes](index=7&type=section&id=III.%20Information%20Disclosure%20and%20Document%20Custody%20Location%20Changes) The company's information disclosure newspapers and website are specified, with the document custody location unchanged during the reporting period - Information disclosure newspapers include Shanghai Securities News, China Securities Journal, Securities Times, and Securities Daily[18](index=18&type=chunk) - The semi-annual report is published on **www.sse.com.cn**[18](index=18&type=chunk) [Overview of Company Shares/Depositary Receipts](index=8&type=section&id=IV.%20Overview%20of%20Company%20Shares%E2%88%95Depositary%20Receipts) The company's A-shares are listed on SSE STAR Market and H-shares on HKEX Main Board, with no depositary receipts in the reporting period Company Share Overview | Share Type | Listing Exchange and Board | Stock Abbreviation | Stock Code | Former Stock Abbreviation | | :--- | :--- | :--- | :--- | :--- | | A-shares | SSE STAR Market | 時代電氣 (Times Electric) | 688187 | N/A | | H-shares | HKEX Main Board | 時代電氣 (Times Electric) | 3898 | CRRC Times Electric | [Company Key Accounting Data and Financial Indicators](index=8&type=section&id=VI.%20Company%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In H1 2025, revenue grew by 17.95% to CNY 12.21 billion, net profit attributable to shareholders increased by 12.93% to CNY 1.67 billion, and operating cash flow surged by 188.52% Key Accounting Data (Jan-Jun) | Indicator | Current Period (CNY) | Prior Period Adjusted (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 12,213,971,602 | 10,355,639,193 | 17.95 | | Net Profit Attributable to Shareholders | 1,671,501,854 | 1,480,145,282 | 12.93 | | Net Profit Attributable to Shareholders Excluding Non-Recurring Items | 1,587,913,446 | 1,158,683,608 | 37.04 | | Net Cash Flow from Operating Activities | 1,879,416,373 | 651,393,081 | 188.52 | Key Financial Indicators (Jan-Jun) | Indicator | Current Period | Prior Period Adjusted | Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (CNY/share) | 1.21 | 1.05 | 15.24 | | Basic EPS Excluding Non-Recurring Items (CNY/share) | 1.15 | 0.82 | 40.24 | | Weighted Average Return on Net Assets (%) | 4.14 | 3.85 | increased by 0.29 percentage points | | R&D Investment as % of Operating Revenue (%) | 10.40 | 9.54 | increased by 0.86 percentage points | - Net profit excluding non-recurring items increased by **37.04%** year-on-year, primarily due to revenue growth[24](index=24&type=chunk) - Net cash flow from operating activities increased by **188.52%** year-on-year, mainly driven by increased cash received from sales of goods and services[24](index=24&type=chunk) - Basic earnings per share excluding non-recurring items increased by **40.24%** year-on-year, primarily due to growth in non-recurring net profit and a reduction in total share capital from H-share repurchases[24](index=24&type=chunk) [Non-Recurring Gains and Losses Items and Amounts](index=10&type=section&id=VIII.%20Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) Total non-recurring gains and losses for the period amounted to **CNY 83.59 million**, primarily from government subsidies and fair value changes/disposal gains/losses on financial assets and liabilities Non-Recurring Gains and Losses Items and Amounts | Non-Recurring Gains and Losses Item | Amount (CNY) | | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | -682,457 | | Government Subsidies Recognized in Current Profit/Loss | 83,567,707 | | Gains/Losses from Fair Value Changes and Disposal of Financial Assets and Liabilities | 4,672,057 | | Reversal of Impairment Provisions for Receivables Subject to Separate Impairment Testing | 10,823,292 | | Other Non-Operating Income and Expenses Apart from the Above | 12,629,451 | | Less: Income Tax Impact | 16,633,836 | | Impact on Minority Interests (After Tax) | 10,787,806 | | Total | 83,588,408 | [Explanation of Non-GAAP Performance Indicators](index=11&type=section&id=X.%20Explanation%20of%20Non-GAAP%20Performance%20Indicators) The company disclosed **EBITDA** as a non-GAAP financial metric, reaching **CNY 2.83 billion** with a **23.26%** year-on-year increase, reflecting core business operational and profitability strength EBITDA Calculation | Indicator | Current Period (CNY) | Prior Period (CNY) | | :--- | :--- | :--- | | Accounting Indicator: Net Profit | 1,784,196,054 | 1,574,336,829 | | Adjustment Item: Interest Expense | 10,105,440 | 25,676,823 | | Adjustment Item: Income Tax Expense | 303,550,257 | 107,711,300 | | Adjustment Item: Depreciation Expense | 598,892,075 | 459,415,685 | | Adjustment Item: Amortization Expense | 132,198,805 | 127,930,653 | | Non-GAAP Financial Indicator: EBITDA | 2,828,942,631 | 2,295,071,290 | - Current period **EBITDA** was **CNY 2.83 billion**, a **23.26%** year-on-year increase, primarily due to revenue growth leading to higher net profit[30](index=30&type=chunk) - EBITDA, by excluding depreciation, amortization, interest, and taxes, reflects the company's core business operational and profitability capabilities, especially relevant for capital-intensive enterprises[29](index=29&type=chunk) [Management Discussion and Analysis](index=12&type=section&id=Third%20Section%20Management%20Discussion%20and%20Analysis) [Description of Industry and Main Business During the Reporting Period](index=12&type=section&id=I.%20Description%20of%20Industry%20and%20Main%20Business%20During%20the%20Reporting%20Period) As a leading rail transit traction converter system supplier, the company pursues a "concentric diversification" strategy, expanding into emerging industries while leveraging national "transportation power" and "dual carbon" strategies for growth - The company is a leading supplier of traction converter systems in the rail transit industry, possessing comprehensive R&D, design, manufacturing, sales, and service capabilities[32](index=32&type=chunk) - The company's main businesses include rail transit electrical equipment, rail engineering machinery, and communication signal systems, with strategic layouts in emerging industries such as basic components, new energy vehicle electric drive systems, new energy power generation equipment, marine engineering equipment, and industrial converters[33](index=33&type=chunk) - National "Transportation Power Strategy" and "Dual Carbon" strategies present significant opportunities for the company's rail transit and new energy equipment industries, promoting intelligent, digital, and green low-carbon transportation equipment development[35](index=35&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk) [Main Business Overview](index=12&type=section&id=%28I%29%20Main%20Business%20Overview) As a leader in rail transit traction converter systems, the company focuses on R&D, implements a "concentric diversification" strategy, and expands into emerging industries with a complete independent intellectual property system - The company is committed to becoming the preferred supplier of comprehensive solutions for global rail transit equipment[32](index=32&type=chunk) - The company possesses an industrial structure of "components + systems + complete machines," with products covering rail transit electrical equipment, rail engineering machinery, and communication signal systems[33](index=33&type=chunk) - The company holds independent intellectual property rights in various technological fields, including electrical systems, converter and control, power semiconductors, and deep-sea robots[33](index=33&type=chunk) [Industry Overview](index=12&type=section&id=%28II%29%20Industry%20Overview) National strategies like the "20th Party Congress Report," "Transportation Power Strategy," and "Dual Carbon" provide significant opportunities for the company's rail transit and new energy industries, promoting intelligent, digital, and green development - The "Outline of Building a Nation with Strong Transportation Network" explicitly promotes intelligent and digital transportation equipment, advocating green and low-carbon development[37](index=37&type=chunk) - Under the "Dual Carbon" strategy, the domestic new energy power generation industry ("wind-solar-storage-hydrogen") has vast market prospects, with rapid development in new energy vehicle electric drive systems, semiconductor devices, and sensors[38](index=38&type=chunk) [Discussion and Analysis of Operations](index=14&type=section&id=II.%20Discussion%20and%20Analysis%20of%20Operations) In H1 2025, the company achieved stable development, maintaining rail transit market share, securing overseas projects, and rapidly advancing emerging equipment businesses with significant progress across multiple sectors - In the rail transit industry, national railway fixed asset investment increased by **5.5%** year-on-year, and the company maintained a stable market share in EMU and locomotive tenders[42](index=42&type=chunk) - New achievements were made in overseas market expansion, securing **13 projects** in Asia, America, and Europe, covering various products and systems[42](index=42&type=chunk) - In the basic components segment, the Yixing Phase 3 power semiconductor project reached design capacity, **SiC modules** achieved small-batch delivery, and sensor business grew significantly[43](index=43&type=chunk) - In the new energy passenger vehicle electric drive segment, multi-in-one assembly performance improved significantly, achieving the first high-voltage assembly order and initial mass production application of multi-in-one products, with **20 new projects** added[43](index=43&type=chunk) - In the new energy power generation segment, multi-industry synergy across solar, storage, wind, and hydrogen led to a leading domestic bidding capacity, with initial overseas orders for photovoltaic, energy storage PCS, and hydrogen production products[45](index=45&type=chunk) - In the marine engineering equipment segment, multiple new domestic and international orders were secured, including the first **EROV** order, accelerating technological iteration[45](index=45&type=chunk) [Analysis of Core Competencies During the Reporting Period](index=15&type=section&id=III.%20Analysis%20of%20Core%20Competencies%20During%20the%20Reporting%20Period) The company's core competencies include leading market position, innovation-driven technology, high-reliability quality and service, full industrial chain synergy, and top-tier talent, achieving significant R&D results and industry leadership in key sectors - The company has led the domestic market in high-speed rail and locomotive traction converter system products for many consecutive years, and its urban rail traction converter system market share has ranked first for **thirteen consecutive years**[46](index=46&type=chunk) - In emerging equipment businesses, passenger vehicle power module installed capacity ranks **second** in the industry, photovoltaic inverters secured over **15GW** in domestic bids, and sensor devices maintain the **first** position in domestic rail transit market share[47](index=47&type=chunk) - The company possesses **6 national-level** and **7 provincial-level** technological innovation platforms, with a cumulative total of **3,654 patents** granted, including **2,473 invention patents**[50](index=50&type=chunk) - In H1 2025, total R&D investment reached **CNY 1.27 billion**, a **28.59%** year-on-year increase, accounting for **10.40%** of operating revenue[84](index=84&type=chunk) - The number of R&D personnel reached **4,066**, accounting for **40.8%** of the total workforce, with nearly half holding postgraduate or higher degrees[54](index=54&type=chunk)[112](index=112&type=chunk) [Core Competency Analysis](index=15&type=section&id=%28I%29%20Core%20Competency%20Analysis) The company's core competencies, including market leadership, innovation, quality, supply chain synergy, and talent, collectively underpin its sustained growth and market position - The company has led the domestic market in high-speed rail and locomotive traction converter system products for many consecutive years, and its urban rail traction converter system market share has ranked first for **thirteen consecutive years**[46](index=46&type=chunk) - The company possesses **6 national-level** and **7 provincial-level** technological innovation platforms, with a cumulative total of **3,654 patents** granted, including **2,473 invention patents**[50](index=50&type=chunk) - The company has established a quality management and assurance system covering the entire lifecycle from design to service, and was awarded the **Second China Quality Award in 2016**[51](index=51&type=chunk) - The company has formed a complete industrial chain structure of "basic components + devices and systems + complete machines and engineering," providing assurance for profit growth and cost control[53](index=53&type=chunk) - The company has **4,066 R&D personnel**, accounting for **40.8%** of the total, with nearly half holding postgraduate or higher degrees, and an experienced management team[54](index=54&type=chunk)[112](index=112&type=chunk) [Core Technologies and R&D Progress](index=18&type=section&id=%28III%29%20Core%20Technologies%20and%20R%26D%20Progress) The company has developed core technologies in rail transit traction converter systems and related fields, achieving significant R&D breakthroughs in permanent magnet traction systems, CR450 EMUs, FAO signal systems, SiC chip technology, and deep-sea robots, with **165 new patents** and a **28.59%** increase in R&D investment - The company possesses multiple core technologies, including electrical system technology, converter and control technology, power semiconductor technology, communication signal technology, data and intelligent application technology, deep-sea robot technology, new energy vehicle electric drive system technology, and sensor technology[57](index=57&type=chunk) - In H1 2025, Fuxing Hao locomotives completed permanent magnet traction system and new power device installation and debugging, achieving a traction energy consumption reduction of over **20%**[77](index=77&type=chunk) - The **CR450 EMU** completed full-vehicle loop line tests, Yuqian line main line tests, and Wuyi line main line tests, achieving high-speed runs at **450km/h**[77](index=77&type=chunk) - The fully autonomous **FAO** signal system was successfully applied to Ningbo Metro Line 8, entering a new phase of **FAO** engineering application[77](index=77&type=chunk) - Breakthroughs in **SiC** dynamic characteristics and underlying reliability technology resulted in superior current output capability compared to international peers, completing the first small-batch delivery of automotive-grade **SiC modules**[43](index=43&type=chunk)[79](index=79&type=chunk) - The company completed development of its first liquid-cooled centralized energy storage converter—a **2.5MW** single-branch **PCS**, with orders exceeding **2GW** in H1[79](index=79&type=chunk) - The first domestic delivery and sea trials of **2 sets of 250-horsepower** autonomous work-class **ROVs** were completed, with a cumulative **11 dives** totaling **173 hours**[79](index=79&type=chunk) R&D Investment Overview | Indicator | Current Period (CNY) | Prior Period (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment | 1,214,500,454 | 959,334,678 | 26.60 | | Capitalized R&D Investment | 56,248,592 | 28,905,627 | 94.59 | | Total R&D Investment | 1,270,749,046 | 988,240,305 | 28.59 | | Total R&D Investment as % of Operating Revenue (%) | 10.40 | 9.54 | increased by 0.86 percentage points | | Proportion of Capitalized R&D Investment (%) | 4.43 | 2.92 | increased by 1.51 percentage points | R&D Personnel Overview | Indicator | Current Period | Prior Period | | :--- | :--- | :--- | | Number of Company R&D Personnel (people) | 4,066 | 3,076 | | R&D Personnel as % of Total Company Staff (%) | 40.80 | 37.08 | | Total R&D Personnel Compensation (CNY million) | 657.86 | 465.59 | | Average R&D Personnel Compensation (CNY million) | 1.62 | 1.51 | [Risk Factors](index=54&type=section&id=IV.%20Risk%20Factors) The company faces multiple risks including core competency, operational, financial, industry, and macroeconomic factors, with corresponding mitigation strategies in place - Core Competency Risk: Technological R&D inherently involves uncertainties, potentially leading to failure in new technology/product development or lower-than-expected returns[115](index=115&type=chunk) - Operational Risk: Weakening global economic growth, deglobalization, and geopolitical conflicts pose risks to overseas operations, characterized by long project cycles and stringent technical requirements[116](index=116&type=chunk) - Financial Risk: Volatile international financial environment and exchange rate fluctuations may lead to losses on foreign currency assets and increased costs[117](index=117&type=chunk) - Industry Risk: The new energy vehicle market is highly competitive, with accelerating in-house production trends by OEMs and shorter technology iteration cycles[118](index=118&type=chunk) - Macroeconomic Risk: Escalating geopolitical risks, complex international security situations, and adjustments in global industrial and supply chains impact overseas business operations[119](index=119&type=chunk) [Key Operating Performance During the Reporting Period](index=56&type=section&id=V.%20Key%20Operating%20Performance%20During%20the%20Reporting%20Period) In H1 2025, the company achieved stable operating performance with **CNY 12.21 billion** in revenue (+17.95%) and **CNY 1.67 billion** in net profit (+12.93%), driven by growth in both rail transit and emerging equipment businesses, while maintaining a robust asset-liability structure - During the reporting period, the company achieved operating revenue of **CNY 12.21 billion**, a year-on-year increase of **17.95%**[121](index=121&type=chunk) - Net profit attributable to the parent company was **CNY 1.67 billion**, a year-on-year increase of **12.93%**[121](index=121&type=chunk) Operating Revenue by Segment | Revenue Segment | Current Period (CNY billion) | Prior Period (CNY billion) | Change (%) | | :--- | :--- | :--- | :--- | | Rail Transit Equipment Business | 6.91 | 6.14 | 12.58 | | Emerging Equipment Business | 5.24 | 4.17 | 25.88 | | Of which: Basic Components | 2.42 | 1.87 | 29.12 | | New Energy Power Generation | 1.05 | 0.73 | 42.94 | | Industrial Converters | 0.36 | 0.17 | 110.08 | - Trading financial assets decreased by **94.82%**, primarily due to the maturity of structured deposits[129](index=129&type=chunk) - Other non-current assets increased by **206.30%**, mainly due to increased purchases of large-denomination certificates of deposit with maturities longer than one year and time deposits exceeding one year[129](index=129&type=chunk) - Employee compensation payable increased by **104.05%**, primarily due to accrued annual bonuses not yet due for payment[129](index=129&type=chunk) - Other payables increased by **139.21%**, mainly due to increased dividends payable from cash dividend accruals[129](index=129&type=chunk) [Main Business Analysis](index=56&type=section&id=%28I%29%20Main%20Business%20Analysis) Operating revenue increased by **17.95%** to **CNY 12.21 billion**, with significant growth in emerging equipment, particularly industrial converters, while operating costs, sales expenses, and R&D expenses also increased, and operating cash flow surged by **188.52%** Changes in Financial Statement Items | Item | Current Period (CNY) | Prior Period (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 12,213,971,602 | 10,355,639,193 | 17.95 | | Operating Cost | 8,304,208,989 | 7,495,953,645 | 10.78 | | Selling Expenses | 228,177,596 | 207,140,673 | 10.16 | | Administrative Expenses | 472,313,764 | 439,058,995 | 7.57 | | Financial Expenses | -178,326,863 | -77,314,293 | N/A | | R&D Expenses | 1,214,500,454 | 959,334,677 | 26.60 | | Net Cash Flow from Operating Activities | 1,879,416,373 | 651,393,081 | 188.52 | - Changes in financial expenses were primarily due to increased exchange gains/losses and interest income from cash management[125](index=125&type=chunk) - Changes in net cash flow from investing activities were mainly due to increased cash payments for investments[125](index=125&type=chunk) - Changes in net cash flow from financing activities were mainly due to decreased cash received from minority shareholder investments in subsidiaries[125](index=125&type=chunk) [Analysis of Assets and Liabilities](index=58&type=section&id=%28III%29%20Analysis%20of%20Assets%E3%80%81Liabilities) Total assets increased by **6.75%** to **CNY 69.18 billion**, with a **94.82%** decrease in trading financial assets and a **206.30%** increase in other non-current assets, while liabilities saw significant increases in employee compensation payable and other payables Changes in Assets and Liabilities | Item Name | Current Period End (CNY) | Current Period End as % of Total Assets (%) | Prior Year End (CNY) | Prior Year End as % of Total Assets (%) | Change from Prior Year End (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 182,972,219 | 0.26 | 3,533,861,455 | 5.45 | -94.82 | | Non-Current Assets Due Within One Year | 1,672,608,254 | 2.42 | 2,628,347,569 | 4.06 | -36.36 | | Construction in Progress | 1,229,176,438 | 1.78 | 2,312,618,688 | 3.57 | -46.85 | | Other Non-Current Assets | 10,762,742,159 | 15.56 | 3,513,755,035 | 5.42 | 206.30 | | Short-Term Borrowings | 61,216,261 | 0.09 | 39,010,667 | 0.06 | 56.92 | | Employee Compensation Payable | 461,736,678 | 0.67 | 226,286,846 | 0.35 | 104.05 | | Taxes Payable | 381,650,945 | 0.55 | 244,575,367 | 0.38 | 56.05 | | Other Payables | 4,473,163,132 | 6.47 | 1,869,975,564 | 2.89 | 139.21 | | Provisions | 885,305,160 | 1.28 | 611,111,883 | 0.94 | 44.87 | - Overseas assets amounted to **CNY 1.87 billion**, accounting for **2.70%** of total assets[130](index=130&type=chunk) [Analysis of Investment Status](index=59&type=section&id=%28IV%29%20Analysis%20of%20Investment%20Status) The group made no external equity investments during the reporting period, with total equity investment decreasing by **0.95%** to **CNY 831 million**, while financial assets measured at fair value totaled **CNY 3.89 billion** - During the reporting period, the Group made no external equity investments[131](index=131&type=chunk) - As of the end of the reporting period, the Group's external equity investment balance was **CNY 831 million**, a **0.95%** decrease from the beginning of the year[131](index=131&type=chunk) Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (CNY) | Fair Value Change Gains/Losses for the Period (CNY) | Amount Sold/Redeemed for the Period (CNY) | Ending Balance (CNY) | | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 3,533,861,455 | 8,109,370 | 3,340,000,000 | 182,972,219 | | Notes Receivable Measured at Fair Value | 1,286,784,981 | – | – | 1,372,655,833 | | Accounts Receivable Measured at Fair Value | 2,534,918,377 | – | – | 2,069,848,119 | | Other Equity Instrument Investments | 266,823,520 | – | – | 266,823,520 | | Total | 7,622,388,333 | 8,109,370 | 3,340,000,000 | 3,892,299,691 | [Analysis of Major Controlled and Invested Companies](index=61&type=section&id=%28V%29%20Analysis%20of%20Major%20Controlled%20and%20Invested%20Companies) Zhuzhou CRRC Times Semiconductor Co., Ltd., a key subsidiary, reported **CNY 2.44 billion** in revenue and **CNY 442 million** in net profit, significantly impacting the company's overall net profit Financial Performance of Major Subsidiaries | Company Name | Company Type | Main Business | Registered Capital (CNY) | Total Assets (CNY) | Net Assets (CNY) | Operating Revenue (CNY) | Operating Profit (CNY) | Net Profit (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhuzhou CRRC Times Semiconductor Co., Ltd. | Subsidiary | R&D, Production, and Sales of Power Semiconductor Devices | 5,647,633,598 | 16,492,812,979 | 11,267,375,855 | 2,440,250,390 | 441,867,754 | 441,962,264 | [Corporate Governance, Environment, and Society](index=63&type=section&id=Fourth%20Section%20Corporate%20Governance%E3%80%81Environment%20and%20Society) [Changes in Directors, Supervisors, Senior Management, and Core Technical Personnel](index=63&type=section&id=I.%20Changes%20in%20Directors%E3%80%81Supervisors%E3%80%81Senior%20Management%20and%20Core%20Technical%20Personnel) During the reporting period, the company experienced multiple changes in its Board of Directors, Supervisors, senior management, and core technical personnel, including the abolition of the Supervisory Board and appointments of new joint company secretaries - Effective **June 27, 2025**, the company abolished the Supervisory Board and supervisor positions; Li Lue, Geng Jianxin, Shen Zhulin, and Liu Shaojie ceased to be supervisors[141](index=141&type=chunk) - Zhu Hongjun, Lu Yang, Liu Liangjie, and Zhang Min are no longer designated as core technical personnel due to position adjustments, while Wu Qingli, Zheng Huaxiong, Cheng Zhenglin, and Li Cheng are newly designated as core technical personnel[140](index=140&type=chunk) - Zhang Lixia resigned as Company Secretary, and Long Furong and Leung Oi Yan were appointed as Joint Company Secretaries[141](index=141&type=chunk) [Profit Distribution or Capital Reserve Conversion Plan](index=64&type=section&id=II.%20Profit%20Distribution%20or%20Capital%20Reserve%20Conversion%20Plan) The Board of Directors approved a semi-annual profit distribution plan to pay a cash dividend of **CNY 4.40** (tax inclusive) per **10 shares**, totaling approximately **CNY 597.50 million**, representing **35.75%** of H1 2025 net profit - The company plans to distribute a cash dividend of **CNY 4.40** (tax inclusive) per **10 shares** to all shareholders[143](index=143&type=chunk) - As of **June 30, 2025**, the total proposed cash dividend amounts to **CNY 597,497,301.28**[143](index=143&type=chunk) - This profit distribution plan represents **35.75%** of the company's H1 2025 consolidated net profit attributable to shareholders[143](index=143&type=chunk) [Corporate Governance Status](index=65&type=section&id=V.%20Corporate%20Governance%20Status) The company maintains high corporate governance standards, complying with HKEX Listing Rules, and has repurchased and cancelled **44.37 million H-shares** totaling **HKD 1.37 billion** to enhance shareholder value - The company has adopted a code of conduct no less stringent than the "Model Code," which all directors and former supervisors have confirmed compliance with[149](index=149&type=chunk) H-Share Repurchase Status (H1 2025) | Repurchase Month | Number of H-Shares Repurchased | Highest Price Paid Per Share (HKD) | Lowest Price Paid Per Share (HKD) | Total Consideration (Excluding Transaction Fees) (HKD) | | :--- | :--- | :--- | :--- | :--- | | 2025年1月 | 12,351,200 | 32.6 | 29.05 | 371,044,003.86 | | 2025年2月 | 20,629,100 | 32.2 | 28.8 | 628,782,940.65 | | 2025年4月 | 1,295,000 | 32.0 | 30.5 | 40,254,427.50 | | 2025年5月 | 9,485,500 | 33.2 | 31.25 | 309,541,394.54 | | 2025年6月 | 610,800 | 33.2 | 32.35 | 20,148,589.47 | - The company cancelled **37,313,100 H-shares** on **February 26, 2025**, and **11,391,300 H-shares** on **June 19, 2025**[150](index=150&type=chunk) - The Audit Committee has reviewed the Group's unaudited interim condensed consolidated financial statements and is satisfied that they comply with applicable accounting standards and regulatory requirements[152](index=152&type=chunk) [Environmental Information of Listed Company and Major Subsidiaries Included in Legally Mandated Environmental Disclosure List](index=68&type=section&id=VI.%20Environmental%20Information%20of%20Listed%20Company%20and%20Major%20Subsidiaries%20Included%20in%20Legally%20Mandated%20Environmental%20Disclosure%20List) Two major subsidiaries, Zhuzhou CRRC Times Semiconductor Co., Ltd. and Baoji CRRC Times Engineering Machinery Co., Ltd., are on the legally mandated environmental information disclosure list, with their data available via respective provincial systems - The number of enterprises included in the legally mandated environmental information disclosure list is **2**[153](index=153&type=chunk) Environmental Information Disclosure Enterprises | No. | Enterprise Name | Query Index for Legally Mandated Environmental Disclosure Report | | :--- | :--- | :--- | | 1 | Zhuzhou CRRC Times Semiconductor Co., Ltd. | Enterprise Environmental Information Disclosure System (Hunan) | | 2 | Baoji CRRC Times Engineering Machinery Co., Ltd. | Enterprise Environmental Information Disclosure System (Shaanxi) | [Significant Matters](index=69&type=section&id=Fifth%20Section%20Significant%20Matters) [Fulfillment of Commitments](index=69&type=section&id=I.%20Fulfillment%20of%20Commitments) The company, its controlling shareholder, and related parties have diligently fulfilled all commitments during the reporting period, including share lock-ups, price stabilization measures, information disclosure accuracy, and avoidance of fund occupation and horizontal competition - CRRC Group committed to a **36-month** lock-up period for its A-shares from the listing date, with a pledge that the reduction price within two years after the lock-up period will not be lower than the issue price[155](index=155&type=chunk) - The company, controlling shareholders, directors, and senior management committed to initiating share price stabilization measures, including share purchases or buybacks, if the company's A-share price falls below its net asset value per share[159](index=159&type=chunk)[162](index=162&type=chunk) - The company, controlling shareholders, directors, and senior management committed that the prospectus and other information disclosure materials contain no false records, misleading statements, or major omissions, and will bear corresponding compensation liabilities[171](index=171&type=chunk)[174](index=174&type=chunk)[177](index=177&type=chunk)[179](index=179&type=chunk)[181](index=181&type=chunk)[183](index=183&type=chunk)[184](index=184&type=chunk)[186](index=186&type=chunk)[188](index=188&type=chunk)[190](index=190&type=chunk)[192](index=192&type=chunk) - The company, controlling shareholders, directors, and senior management committed to implementing measures to mitigate the dilution of immediate returns from this offering and listing, and to strictly comply with relevant laws and regulations[181](index=181&type=chunk)[183](index=183&type=chunk)[185](index=185&type=chunk) - CRRC Zhuzhou Institute and CRRC Group committed to avoiding fund occupation and horizontal competition, ensuring no harm to the interests of the company and other shareholders[194](index=194&type=chunk)[196](index=196&type=chunk)[200](index=200&type=chunk)[202](index=202&type=chunk)[204](index=204&type=chunk)[206](index=206&type=chunk) - CRRC Zhuzhou Institute voluntarily extended the lock-up period for its Times Electric A-shares by **12 months** to **September 6, 2025**[214](index=214&type=chunk)[219](index=219&type=chunk) [Significant Contracts and Their Performance](index=104&type=section&id=X.%20Significant%20Contracts%20and%20Their%20Performance) The company provided guarantees totaling **CNY 245.75 million** to its subsidiaries, representing **0.60%** of net assets, with no external guarantees or overdue guarantees during the reporting period - During the reporting period, the company had no external guarantees (excluding guarantees to subsidiaries)[223](index=223&type=chunk) Guarantees Provided by the Company and its Subsidiaries to Subsidiaries | Guarantor | Guaranteed Party | Guaranteed Amount (CNY) | Guarantee Start Date | Guarantee End Date | Guarantee Type | Is Guarantee Overdue | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhuzhou CRRC Times Electric Co., Ltd. | Soil Machine Dynamics Limited | 245,750,000.00 | 2024年10月12日 | 2025年10月12日 | Joint and Several Liability Guarantee | No | | Zhuzhou CRRC Times Electric Co., Ltd. | Shanghai CRRC SMD Marine Equipment Co., Ltd. | 31,152,000.00 | 2024年4月25日 | 2025年6月13日 | Joint and Several Liability Guarantee | No | - As of the end of the reporting period, the total outstanding guarantees to subsidiaries amounted to **CNY 245.75 million**, accounting for **0.60%** of the company's net assets[225](index=225&type=chunk) [Explanation of Progress in Use of Raised Funds](index=105&type=section&id=XI.%20Explanation%20of%20Progress%20in%20Use%20of%20Raised%20Funds) The company's IPO raised **CNY 7.44 billion**, with **90.63%** (CNY 6.75 billion) invested to date in R&D projects, manufacturing platforms, and working capital, while **CNY 715 million** of idle funds are used for cash management Overall Use of Raised Funds | Source of Raised Funds | Net Raised Funds (1) (CNY) | Total Investment Pledged in Prospectus (2) (CNY) | Total Raised Funds Cumulatively Invested as of Period End (4) (CNY) | Cumulative Investment Progress of Raised Funds as of Period End (6)=(4)╱(1) (%) | Amount Invested This Year (8) (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | | Initial Public Offering | 7,443,212,046 | 7,443,212,046 | 6,745,770,060 | 90.63 | 679,168,823 | | Total | 7,443,212,046 | 7,443,212,046 | 6,745,770,060 | 90.63 | 679,168,823 | Details of Raised Fund Investment Projects | Source of Raised Funds | Project Name | Planned Total Investment of Raised Funds (1) (CNY) | Total Raised Funds Cumulatively Invested as of Period End (2) (CNY) | Cumulative Investment Progress (3)=(2)╱(1) (%) | | :--- | :--- | :--- | :--- | :--- | | Initial Public Offering | Rail Transit Traction Network Technology and System R&D and Application Project | 2,095,500,000 | 1,989,469,909 | 94.94 | | Initial Public Offering | Rail Transit Smart Bureau and Smart System R&D and Application Project | 1,070,830,000 | 1,058,411,555 | 98.84 | | Initial Public Offering | New Industry Advanced Technology R&D and Application Project | 869,270,000 | 706,144,133 | 81.23 | | Initial Public Offering | New Rail Engineering Machinery R&D and Manufacturing Platform Construction Project | 800,000,000 | 780,677,493 | 97.58 | | Initial Public Offering | Innovation Experiment Platform Construction Project | 931,000,000 | 529,706,386 | 56.90 | | Initial Public Offering | Replenishment of Working Capital | 1,676,612,046 | 1,681,360,586 | 100.28 | - As of **June 30, 2025**, the company's balance of idle raised funds used to purchase cash management products was **CNY 715 million**[236](index=236&type=chunk) [Share Changes and Shareholder Information](index=111&type=section&id=Sixth%20Section%20Share%20Changes%20and%20Shareholder%20Information) [Share Capital Changes](index=111&type=section&id=I.%20Share%20Capital%20Changes) During the reporting period, the company's total share capital decreased by **48.70 million shares** to **1.36 billion shares** due to H-share repurchases and cancellations, specifically impacting unrestricted foreign-listed shares Table of Share Changes | | Quantity Before Change | Percentage Before Change (%) | Change (+,-) Other | Change (+,-) Subtotal | Quantity After Change | Percentage After Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 589,585,699 | 41.91 | – | – | 589,585,699 | 43.42 | | II. Unrestricted Tradable Shares | 817,067,113 | 58.09 | -48,704,400 | -48,704,400 | 768,362,713 | 56.58 | | 3. Foreign-Listed Shares | 537,745,300 | 38.23 | -48,704,400 | -48,704,400 | 489,040,900 | 36.01 | | III. Total Shares | 1,406,652,812 | 100.00 | -48,704,400 | -48,704,400 | 1,357,948,412 | 100.00 | - **37,313,100 H-shares** repurchased from **December 17, 2024**, to **February 20, 2025**, were cancelled on **February 26, 2025**[244](index=244&type=chunk) - **11,391,300 H-shares** repurchased from **April 30, 2025**, to **June 5, 2025**, were cancelled on **June 19, 2025**[244](index=244&type=chunk) [Shareholder Information](index=112&type=section&id=II.%20Shareholder%20Information) As of the reporting period end, the company had **21,803** common shareholders, with CRRC Zhuzhou Institute as the largest shareholder (**44.21%**) and HKSCC NOMINEES LIMITED holding **35.92%**, while CRRC Zhuzhou Institute's restricted shares are set to be unlocked on **September 7, 2025** - As of the end of the reporting period, the total number of common shareholders was **21,803**[247](index=247&type=chunk) Top Ten Shareholders' Shareholdings | Shareholder Name (Full Name) | Number of Shares Held at Period End | Percentage (%) | Number of Restricted Shares Held | | :--- | :--- | :--- | :--- | | CRRC Zhuzhou Institute Co., Ltd. | 600,381,485 | 44.21 | 589,585,699 | | HKSCC NOMINEES LIMITED | 487,736,266 | 35.92 | 0 | | Hong Kong Securities Clearing Company Limited | 15,946,712 | 1.17 | 0 | Top Ten Restricted Shareholders' Shareholdings and Restrictions | No. | Restricted Shareholder Name | Number of Restricted Shares Held | Tradable Date | Restriction Conditions | | :--- | :--- | :--- | :--- | :--- | | 1 | CRRC Zhuzhou Institute Co., Ltd. | 589,585,699 | September 7, 2025 (extended if non-trading day) | 36 months from the date of the company's listing on the Shanghai Stock Exchange + voluntary extension of 12 months lock-up | - Hunan Rail Transit Holding Group Co., Ltd. and Guohua Investment Development Asset Management (Beijing) Co., Ltd. became top ten shareholders due to new share placements[257](index=257&type=chunk) [Major Shareholders' Interests and Short Positions in the Company's Shares and Related Shares](index=118&type=section&id=III.%20Major%20Shareholders%27%20Interests%20and%20Short%20Positions%20in%20the%20Company%27s%20Shares%20and%20Related%20Shares) As of **June 30, 2025**, CRRC Zhuzhou Institute held **44.21%** of A-shares, while CRRC Corporation and CRRC Group held significant interests in both A-shares and H-shares through controlled entities, with JPMorgan Chase & Co. and Citigroup Inc. also holding H-share long and short positions Major Shareholders' Interests and Short Positions | Major Shareholder Name | Share Class | Number of Shares Held | Capacity | Approx. % of A-Share Capital | Approx. % of H-Share Capital | Approx. % of Total Issued Share Capital | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | CRRC Zhuzhou Institute | A-shares | 600,381,485 | Beneficial Owner (Long Position) | 69.10% | – | 44.21% | | CRRC Corporation Limited | A-shares | 610,381,485 | Controlled Corporation Interest (Long Position) | 70.25% | – | 44.95% | | CRRC Corporation Limited | H-shares | 65,460,000 | Controlled Corporation Interest (Long Position) | – | 13.39% | 4.82% | | CRRC Group Co., Ltd. | A-shares | 610,381,485 | Controlled Corporation Interest (Long Position) | 70.25% | – | 44.95% | | CRRC Group Co., Ltd. | H-shares | 65,460,000 | Controlled Corporation Interest (Long Position) | – | 13.39% | 4.82% | | JPMorgan Chase & Co. | H-shares | 40,706,800 | Investment Manager (Long Position) | – | 8.32% | 3.00% | | Citigroup Inc. | H-shares | 29,348,509 | Controlled Corporation Interest (Long Position) | – | 6.00% | 2.16% | | Norges Bank | H-shares | 30,227,300 | Beneficial Owner (Long Position) | – | 6.18% | 2.23% | - CRRC Corporation Limited holds **100%** of the registered capital of CRRC Zhuzhou Institute and CRRC Zhuzhou Locomotive Co., Ltd., and is thus deemed to possess their equity interests[261](index=261&type=chunk) - CRRC Group Co., Ltd. directly and indirectly holds approximately **51.45%** of CRRC Corporation Limited's shares, and is thus deemed to possess CRRC Corporation Limited's equity interests[261](index=261&type=chunk) [Bond-Related Information](index=121&type=section&id=Seventh%20Section%20Bond-Related%20Information) [Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments](index=122&type=section&id=I.%20Corporate%20Bonds%20%28Including%20Enterprise%20Bonds%29%20and%20Non-Financial%20Enterprise%20Debt%20Financing%20Instruments) During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments [Convertible Corporate Bonds](index=122&type=section&id=II.%20Convertible%20Corporate%20Bonds) During the reporting period, the company had no convertible corporate bonds [Financial Report](index=123&type=section&id=Eighth%20Section%20Financial%20Report) [Audit Report](index=123&type=section&id=I.%20Audit%20Report) This semi-annual report is unaudited - This semi-annual report is unaudited[8](index=8&type=chunk) [Financial Statements](index=123&type=section&id=II.%20Financial%20Statements) This section presents the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity as of **June 30, 2025**, providing a comprehensive overview of financial position and operating results Consolidated Balance Sheet Summary (June 30, 2025) | Item | June 30, 2025 (CNY) | December 31, 2024 (CNY) | | :--- | :--- | :--- | | Total Current Assets | 42,770,752,383 | 46,433,350,367 | | Total Non-Current Assets | 26,404,738,669 | 18,368,895,952 | | Total Assets | 69,175,491,052 | 64,802,246,319 | | Total Current Liabilities | 23,611,493,640 | 18,729,522,214 | | Total Non-Current Liabilities | 1,560,047,542 | 1,310,306,297 | | Total Liabilities | 25,171,541,182 | 20,039,828,511 | | Total Equity Attributable to Parent Company Owners | 40,652,675,072 | 41,527,759,522 | | Total Owners' Equity | 44,003,949,870 | 44,762,417,808 | Consolidated Income Statement Summary (Jan-Jun 2025) | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 12,213,971,602 | 10,355,639,193 | | Total Operating Cost | 10,137,971,280 | 9,088,046,201 | | Operating Profit | 2,075,116,861 | 1,675,743,903 | | Total Profit | 2,087,746,311 | 1,682,048,129 | | Net Profit | 1,784,196,054 | 1,574,336,829 | | Net Profit Attributable to Parent Company Shareholders | 1,671,501,854 | 1,480,145,282 | | Basic Earnings Per Share (CNY/share) | 1.21 | 1.05 | Consolidated Cash Flow Statement Summary (Jan-Jun 2025) | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 1,879,416,373 | 651,393,081 | | Net Cash Flow from Investing Activities | -5,123,370,146 | -3,089,824,493 | | Net Cash Flow from Financing Activities | 1,132,149,538 | 4,553,651,586 | | Net Increase in Cash and Cash Equivalents | -2,112,676,417 | 2,114,302,610 | | Cash and Cash Equivalents at Period End | 5,524,896,400 | 9,127,845,188 | [Company Basic Information](index=142&type=section&id=III.%20Company%20Basic%20Information) Zhuzhou CRRC Times Electric Co., Ltd., established on **September 26, 2005**, is listed on HKEX and SSE STAR Market, headquartered in Zhuzhou, Hunan, specializing in R&D, design, manufacturing, sales, and service of rail transit and emerging equipment products - The company was established on **September 26, 2005**, jointly initiated by CRRC Zhuzhou Institute Co., Ltd. and others[303](index=303&type=chunk) - The company's H-shares were listed on the HKEX Main Board in **December 2006**, and A-shares on the SSE STAR Market in **September 2021**[304](index=304&type=chunk) - The company's headquarters are located at Shidai Road, Shifeng District, Zhuzhou City, Hunan Province, primarily engaged in rail transit equipment products and emerging equipment products[305](index=305&type=chunk) - For the six months ended **June 30, 2025**, the company cumulatively repurchased **44,371,600 H-shares** and cancelled **48,704,400 H-shares**[305](index=305&type=chunk) [Basis of Financial Statement Preparation](index=143&type=section&id=IV.%20Basis%20of%20Financial%20Statement%20Preparation) The company's financial statements are prepared on a going concern basis, adhering to PRC accounting standards and relevant regulations, with no significant doubts regarding its ability to continue as a going concern for the next 12 months - The company's financial statements are prepared on a going concern basis, adhering to Chinese accounting standards and relevant regulations[306](index=306&type=chunk) - The company evaluated its ability to continue as a going concern for the 12 months from **June 30, 2025**, and found no significant doubts[307](index=307&type=chunk) [Significant Accounting Policies and Estimates](index=143&type=section&id=V.%20Significant%20Accounting%20Policies%20and%20Estimates) This section details the company's significant accounting policies and estimates, covering financial instrument classification, inventory valuation, long-term equity investments, fixed and intangible asset depreciation/amortization, R&D capitalization, revenue recognition, government grants, and deferred taxes - The company's financial assets are classified into three categories: measured at amortized cost, measured at fair value through other comprehensive income, or measured at fair value through profit or loss[339](index=339&type=chunk) - Inventories are initially measured at cost, valued using the weighted average method upon issuance, and impairment provisions are made based on the lower of cost and net realizable value[384](index=384&type=chunk)[385](index=385&type=chunk)[388](index=388&type=chunk) - Fixed assets are depreciated using the straight-line method, with depreciation periods of **20-45 years** for buildings and structures, and **6-10 years** for machinery and equipment[404](index=404&type=chunk) - Intangible assets are initially measured at cost; those with finite useful lives are amortized over their estimated useful lives, while those with indefinite useful lives are not amortized[412](index=412&type=chunk) - R&D expenditures are categorized into research and development phases; development phase expenditures are recognized as intangible assets when specific conditions are met simultaneously[414](index=414&type=chunk)[416](index=416&type=chunk) - Revenue is recognized when customers obtain control of the related goods or services, with main business types including sales of goods and materials, repair services revenue, and construction contract revenue[428](index=428&type=chunk)[430](index=430&type=chunk) - Government grants are classified into asset-related and income-related, recognized as deferred income and amortized to profit or loss over periods, or directly recognized in current profit or loss, respectively[444](index=444&type=chunk)[445](index=445&type=chunk) [Taxation](index=188&type=section&id=VI.%20Taxation) The company's main taxes include VAT (6-13%), urban maintenance and construction tax, education surcharges, and corporate income tax (25%), with many subsidiaries enjoying preferential 15% high-tech enterprise tax rates, Western Development policies, "two-free, three-half" policies for integrated circuit enterprises, and R&D expense super deductions Major Tax Categories and Rates | Tax Category | Tax Rate | | :--- | :--- | | Value-Added Tax (VAT) | 6-13% | | Urban Maintenance and Construction Tax | 5%、7% | | Education Surcharge | 3% | | Local Education Surcharge | 2% | | Corporate Income Tax | 25% | - The company and several subsidiaries (e.g., CRRC Times Software, CRRC Times Electronics, Ningbo CRRC Electric) enjoy a preferential **15%** corporate income tax rate as high-tech enterprises[483](index=483&type=chunk) - Kunming CRRC Electric, Chengdu CRRC Electric, and Chongqing CRRC Electric are eligible for Western Development corporate income tax preferential policies, with a tax rate of **15%**[484](index=484&type=chunk) - CRRC Times Semiconductor benefits from the "two-free, three-half" corporate income tax policy for integrated circuit enterprises, paying at **12.5%** in **2022 and 2023**, and **15%** from **2024** onwards[486](index=486&type=chunk) - For R&D expenses not forming intangible assets, the company and several subsidiaries can claim a **100%** super deduction before tax in **2024 and 2025**; CRRC Times Semiconductor can claim a **120%** super deduction before tax from **2023-2027**[487](index=487&type=chunk) [Notes to Consolidated Financial Statement Items](index=191&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section provides detailed notes on major consolidated financial statement items, including assets, liabilities, equity, income, costs, and expenses, explaining their composition, changes, measurement methods, and related risks Composition of Cash and Bank Balances (June 30, 2025) | Item | Ending Balance (CNY) | | :--- | :--- | | Cash on Hand | 18,718 | | Bank Deposits | 7,012,288,328 | | Other Cash and Bank Balances | 630,909,443 | | Deposits with Finance Company | 58,295,316 | | Total | 7,701,511,805 | | Of which: Total Funds Deposited Overseas | 453,676,961 | - The ending balance of trading financial assets was **CNY 182.97 million**, primarily structured deposits with an expected annual yield of **1.75-2.35%**[497](index=497&type=chunk) - The ending book value of accounts receivable was **CNY 13.04 billion**, with **CNY 209.34 million** provided as bad debt allowance on an individual basis[515](index=515&type=chunk)[517](index=517&type=chunk) - The ending book value of inventories was **CNY 8.20 billion**, with total inventory impairment provisions and contract performance cost impairment provisions amounting to **CNY 264.80 million**[586](index=586&type=chunk) - The ending book value of construction in progress was **CNY 1.23 billion**, with major projects including the industrialization of medium and low-voltage power devices and the construction of a new energy vehicle electric drive system and component manufacturing base[614](index=614&type=chunk) - The original book value of goodwill was **CNY 667.76 million**, with goodwill impairment provisions of **CNY 421.34 million**[628](index=628&type=chunk)[630](index=630&type=chunk) - The ending balance of employee compensation payable was **CNY 461.74 million**, of which salaries, bonuses, allowances, and subsidies amounted to **CNY 236.56 million**[674](index=674&type=chunk)[676](index=676&type=chunk) - The ending balance of other payables was **CNY 4.47 billion**, of which dividends payable amounted to **CNY 1.36 billion**[684](index=684&type=chunk)[685](index=685&type=chunk) - Operating revenue and operating costs are segmented by business type, with rail transit equipment business revenue of **CNY 6.91 billion** and emerging equipment business revenue of **CNY 5.24 billion**[736](index=736&type=chunk) - Net cash flow from operating activities for the current period was **CNY 1.88 billion**, and net cash flow from investing activities was **-CNY 5.12 billion**[790](index=790&type=chunk) [R&D Expenses](index=289&type=section&id=VIII.%20R%26D%20Expenses) Total R&D expenses for the period were **CNY 1.27 billion**, comprising **CNY 1.21 billion** in expensed R&D and **CNY 56.25 million** in capitalized R&D, primarily for employee compensation, material consumption, and depreciation/amortization, with several capitalized projects progressing well R&D Expenses by Nature | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Employee Compensation | 657,856,905 | 509,272,827 | | Depreciation and Amortization Expenses | 157,816,728 | 131,148,490 | | Material Consumption | 321,478,230 | 192,338,310 | | Technical Service Fees | 44,180,734 | 53,641,221 | | Other | 89,416,449 | 101,839,456 | | Total | 1,270,749,046 | 988,240,304 | | Of which: Expensed R&D Investment | 1,214,500,454 | 959,334,677 | | Capitalized R&D Investment | 56,248,592 | 28,905,627 | Development Expenditures for R&D Projects Meeting Capitalization Criteria | Item | Beginning Balance (CNY) | Increase in Internal Development Expenditures for the Period (CNY) | Ending Balance (CNY) | | :--- | :--- | :--- | :--- | | Project One | 52,464,790 | 13,734,203 | 66,198,993 | | Project Three | 24,949,517 | – | 24,949,517 | | Project Four | 17,775,937 | 3,449,224 | 22,838,305 | | Project Seven | 11,803,717 | 7,680,501 | 20,770,179 | | Total | 254,424,273 | 1,270,749,046 | 283,812,179 | - **"Project One"** is **95%** complete, expected to finish by **June 2026**, and will generate economic benefits through sales[817](index=817&type=chunk) [Interests in Other Entities](index=293&type=section&id=X.%20Interests%20in%20Other%20Entities) The company holds interests in numerous subsidiaries, including CRRC Times Semiconductor (a significant non-wholly owned subsidiary with **22.17%** minority interest), and also has equity in joint ventures and associates, with total investment book values of **CNY 263 million** and **CNY 302 million**, respectively Shareholding Ratios of Selected Subsidiaries | Subsidiary Name | Shareholding Ratio (%) Direct | | :--- | :--- | | Ningbo CRRC Times | 100 | | CRRC Times Electronics | 100 | | CRRC Times Semiconductor | 77.83 | | Baoji CRRC Times | 100 | | Hunan CRRC Times Electric Drive Technology Co., Ltd. | 83.30 | | Dynex Power Inc. (Canada) | 100 | | CRRC National Converter Center | 100 | - The company controls Qingdao CRRC Electric Equipment Co., Ltd. (holding **45%** of shares) despite owning less than half of the voting rights, as it is the largest single shareholder and related parties have committed to maintaining consistency[826](index=826&type=chunk) - The company controls FAW CRRC Electric Drive System Co., Ltd. (holding **50%** of shares) because board resolutions and final decisions are subject to the company's discretion[826](index=826&type=chunk) Key Financial Information of Significant Non-Wholly Owned Subsidiary (CRRC Times Semiconductor) | Subsidiary Name | Minority Shareholding Ratio (%) | Profit/Loss Attributable to Minority Shareholders for the Period (CNY) | Minority Interests Balance at Period End (CNY) | | :--- | :--- | :--- | :--- | | CRRC Times Semiconductor | 22.17 | 97,983,034 | 2,503,126,696 | Summarized Financial Information of Insignificant Joint Ventures and Associates | | Ending Balance/Current Period Amount (CNY) | | :--- | :--- | | Joint Ventures: Total Investment Book Value | 262,925,835 | | - Net Profit | -4,742,029 | | Associates: Total Investment Book Value | 301,568,646 | | - Net Profit | -10,460,586 | [Risks Related to Financial Instruments](index=302&type=section&id=XII.%20Risks%20Related%20to%20Financial%20Instruments) The company manages credit, liquidity, and market risks (interest rate, foreign exchange) associated with financial instruments through robust policies, including dealing with reputable third parties, maintaining liquidity plans, and conducting sensitivity analyses for foreign currency fluctuations, while managing capital with a **27.66%** leverage ratio - The primary risks arising from the company's financial instruments are credit risk, liquidity risk, and market risk[845](index=845&type=chunk) - Credit risk is managed by transacting with recognized, reputable third parties and continuously monitoring receivable balances[846](index=846&type=chunk) - Liquidity risk is managed through revolving liquidity planning tools and bank credit lines to maintain financing continuity and flexibility[850](index=850&type=chunk) Interest Rate Risk Sensitivity Analysis (Impact on Net Profit) | Item | Jan-Jun 2025 Increase by 100 Basis Points (CNY) | Jan-Jun 2025 Decrease by 100 Basis Points (CNY) | | :--- | :--- | :--- | | Net Profit (Decrease)/Increase | -459,122 | 459,122 | Foreign Exchange Risk Sensitivity Analysis (Impact on Current Period Profit) | Item | Period-End Basis Point Increase/(Decrease) | Impact on Current Period Profit Increase/(Decrease) (CNY) | | :--- | :--- | :--- | | RMB Appreciation Against EUR | 10% | -16,606,530 | | RMB Appreciation Against USD | 10% | -3,232,684 | | RMB Appreciation Against HKD | 10% | -11,460,695 | | RMB Appreciation Against GBP | 10% | -49,307,576 | Leverage Ratio (June 30, 2025) | Item | Ending Balance (CNY) | | :--- | :--- | | Net Debt | 15,543,883,288 | | Equity Attributable to Parent Company Shareholders | 40,652,675,072 | | Capital and Net Debt | 56,196,558,360 | | Leverage Ratio | 27.66% | - The amount of financial assets transferred and derecognized by the company was **CNY 1.30 billion**, primarily bank acceptance bills endorsed by commercial banks with high credit ratings[876](index=876&type=chunk) [Disclosure of Fair Value](index=313&type=section&id=XIII.%20Disclosure%20of%20Fair%20Value) As of the reporting period end, the company's total assets measured at fair value on a recurring basis amounted to **CNY 3.89 billion**, primarily using Level 2 and Level 3 fair value measurements for trading financial assets, receivables financing, and other equity instrument investments Fair Value of Assets and Liabilities Measured at Fair Value at Period End | Item | Level 2 Fair Value Measurement (CNY) | Level 3 Fair Value Measurement (CNY) | Total (CNY) | | :--- | :--- | :--- | :--- | | (I) Trading Financial Assets | 182,972,219 | – | 182,972,219 | | (II) Receivables Financing | 3,442,503,952 | – | 3,442,503,952 | | (III) Other Equity Instrument Investments | – | 266,823,520 | 266,823,520 | | Total Assets Measured at Fair Value on a Recurring Basis | 3,625,476,171 | 266,823,520 | 3,892,299,691 | - Fair value measurement for trading financial assets uses the discounted cash flow method[880](index=880&type=chunk) - Fair value measurement for receivables financing and other equity instrument investments uses the discounted cash flow method, with unobservable inputs including discount rate, weighted average cost of capital, and long-term revenue growth rate[882](index=882&type=chunk) [Related Parties and Related Party Transactions](index=315&type=section&id=XIV.%20Related%20Parties%20and%20Related%20Party%20Transactions) The company's parent is CRRC Zhuzhou Institute, with CRRC Group as the ultimate controlling party, engaging in significant related party transactions including sales of goods (**CNY 3.38 billion**) and provision of services (**CNY 1.11 billion**) to the ultimate controlling party's group, resulting in substantial receivables and payables - The company's parent company is CRRC Zhuzhou Institute Co., Ltd., with a shareholding ratio of **44.21%**[887](index=887&type=chunk) - The company's ultimate controlling party is CRRC Group Co., Ltd., a state-owned enterprise directly managed by the State-owned Assets Supervision and Administration Commission of the State Council[889](index=889&type=chunk) Related Party Transactions for Purchase of Goods/Acceptance of Services (Current Period Amount) | Related Party | Related Party Transaction Content | Current Period Amount (CNY) | | :--- | :--- | :--- | | Companies Controlled by Ultimate Controlling Party (Excluding CRRC Zhuzhou Institute Group) | Purchase of Goods | 366,328,717 | | Companies Controlled by Ultimate Controlling Party (Excluding CRRC Zhuzhou Institute Group) | Acceptance of Services | 22,935,348 | | Companies Controlled by CRRC Zhuzhou Institute | Purchase of Goods | 336,953,213 | | CRRC Zhuzhou Institute | Acceptance of Services | 22,440,613 | Related Party Transactions for Sale of Goods/Provision of Services (Current Period Amount) | Related Party | Related Party Transaction Content | Current Period Amount (CNY) | | :--- | :--- | :--- | | Companies Controlled by Ultimate Controlling Party (Excluding CRRC Zhuzhou Institute Group) | Sale of Goods | 3,375,345,941 | | Companies Controlled by Ultimate Controlling Party (Excluding CRRC Zhuzhou Institute Group) | Provision of Services | 1,109,499,502 | | CRRC Zhuzhou Institute | Sale of Goods | 200,027,933 | - Key management personnel compensation for the current period amounted to **CNY 4.79 million**[923](index=923&type=chunk) Receivables from Related Parties (Ending Balance) | Item Name | Related Party | Ending Balance (CNY) | | :--- | :--- | :--- | | Notes Receivable | Companies Controlled by Ultimate Controlling Party (Excluding CRRC Zhuzhou Institute Group) | 2,360,799,491 | | Accounts Receivable (Including Long-Term Receivables) | Companies Controlled by Ultimate Controlling Party (Excluding CRRC Zhuzhou Institute Group) | 4,379,313,912 | | Receivables Financing | Companies Controlled by Ultimate Controlling Party (Excluding CRRC Zhuzhou Institute Group) | 1,043,719,575 | Payables to Related Parties (Ending Book Balance) | Item Name | Related Party | Ending Book Balance (CNY) | | :--- | :--- | :--- | | Accounts Payable | Companies Controlled by Ultimate Controlling Party (Excluding CRRC Zhuzhou Institute Group) | 1,236,071,994 | | Other Payables | CRRC Zhuzhou Institute | 2,089,474,121 | | Long-Term Borrowings | Companies Controlled by Ultimate Controlling Party (Excluding CRRC Zhuzhou Institute Group) | 53,188,000 | [Commitments and Contingencies](index=340&type=section&id=XVI.%20Commitments%20and%20Contingencies) As of the balance sheet date, the company had significant external commitments totaling **CNY 3.16 billion**, including **CNY 3.02 billion** in capital commitments and **CNY 144 million** in investment commitments to joint ventures/associates, with no material contingencies to disclose Significant Commitments | Item | Ending Balance (CNY) | | :--- | :--- | | Signed but not yet recognized in financial statements - Capital Commitments | 3,016,495,684 | | Signed but not yet recognized in financial statements - Investments in Associates/Joint Ventures | 144,252,400 | | Total | 3,160,748,084 | - The company has no significant contingencies requiring disclosure[949](index=949&type=chunk) [Events After the Balance Sheet Date](index=341&type=section&id=XVII.%20Events%20After%20the%20Balance%20Sheet%20Date) After the balance sheet date, the company approved a **CNY 1.00** (tax inclusive) per share cash dividend for **2024**, totaling **CNY 1.36 billion**, and proposed a **CNY 4.40** (tax inclusive) per **10 shares** cash dividend for H1 2025, totaling **CNY 597.50 million** - The company's **2024** profit distribution plan has been approved, with a cash dividend of **CNY 1.00** (tax inclusive) per share, totaling **CNY 1.36 billion**[731](index=731&type=chunk) - The company proposes to distribute a cash dividend of **CNY 4.40** (tax inclusive) per **10 shares** to all shareholders, with a total proposed cash dividend of **CNY 597.50 million**[732](index=732&type=chunk) - This proposal

Financial Performance - The company reported unaudited interim consolidated financial data for the six months ending June 30, 2025[13]. - The group recorded revenue of RMB 2,499.6 million for the first half of 2025, an increase of 4.3% compared to the same period last year[14]. - Revenue for the six months ended June 30, 2025, was RMB 2,499,550 thousand, representing a 4.3% increase from RMB 2,395,829 thousand in the same period of 2024[97]. - Gross profit for the reporting period was RMB 814.8 million, up 7.2% from RMB 760.1 million year-on-year, with a gross margin increase to 32.6%[34]. - Profit for the period increased by 39.5% to RMB 332.9 million, compared to RMB 238.6 million in the same period last year[43]. - The profit for the six months ended June 30, 2025, reached RMB 325,903,000, an increase from RMB 237,047,000 for the same period in 2024, representing a growth of approximately 37.5%[121]. - Basic earnings per share for the period was RMB 0.221, compared to RMB 0.178 in the previous year, showing an increase of 24.2%[98]. - The company reported a total comprehensive income of RMB 186,819 thousand for the period, down from RMB 221,004 thousand in 2024[98]. Operational Highlights - The company has a major operational presence in Chengdu, Sichuan Province, China[10]. - The number of stores increased from 8,385 as of June 30, 2024, to 8,444 as of June 30, 2025, representing a year-on-year growth of 0.7%[19]. - The number of franchisees increased from 5,742 at the beginning of the period to 5,833 at the end, with a net addition of 91 franchisees[24]. - The company launched 55 new products and upgraded 9 existing products during the reporting period[26]. - Approximately 93.8% of stores achieved next-day delivery, with about 95% receiving two or more deliveries per week[27]. - The group established 26 distribution centers nationwide, enhancing delivery capabilities in the East China region[27]. - The company continues to penetrate lower-tier cities to enhance brand awareness and service more consumers[17]. Shareholder Information - The company is controlled by major shareholders including Mr. Wang and Ms. Liu, who hold 60% and 40% respectively through Chengdu Jinbaisen[4]. - As of June 30, 2025, Mr. Wang holds 239,598,750 H-shares (16.2150%) and has controlled interests in 906,386,000 H-shares (61.3404%) through a controlled corporation[70]. - Major shareholder Chengdu Jinbaisen holds 900,000,000 H-shares, accounting for 60.9082% of the total issued share capital[75]. - Ms. Liu, Mr. Wang's spouse, holds 76,399,250 H-shares (5.1704%) and has similar controlled interests as Mr. Wang[70]. Financial Position - Cash and cash equivalents as of June 30, 2025, totaled RMB 3,243.9 million, a decrease of 8.9% from RMB 3,559.9 million as of December 31, 2024, primarily due to profit distribution payments[48]. - Total assets as of June 30, 2025, were RMB 3,934,161 thousand, down from RMB 4,082,754 thousand in 2024[101]. - Non-current liabilities decreased to RMB 99,585 thousand from RMB 149,061 thousand, indicating a reduction of 33.3%[101]. - The company had no bank borrowings as of June 30, 2025, indicating a strong capital structure[52]. - The total equity as of June 30, 2025, was RMB 3,834,576,000, reflecting an increase from RMB 3,933,693,000 as of January 1, 2025[104]. Expenses and Costs - Distribution and selling expenses increased by 42.7% to RMB 150.1 million, driven by higher costs related to new product launches and brand marketing efforts[36]. - Administrative expenses rose by 17.9% to RMB 257.4 million, mainly due to increased employee compensation and consulting fees[37]. - The company incurred inventory costs of RMB 1,651,171,000 for the six months ended June 30, 2025, slightly up from RMB 1,625,676,000 in 2024, indicating a marginal increase of 1.6%[117]. Employee Incentive Plan - The company has established a pre-IPO employee incentive plan approved on June 27, 2023[5]. - The incentive plan aims to enhance employee motivation and promote sustainable growth of the group[67]. - The company adopted an employee incentive plan prior to its IPO, with 6,386,000 shares subscribed, representing approximately 0.4322% of the total issued shares[67]. - The company will not issue further shares under the pre-IPO employee incentive plan after listing[67]. Corporate Governance - The company has complied with all applicable corporate governance codes during the reporting period ending June 30, 2025[78]. - The board and supervisory board members did not change during the reporting period[76]. - The company has established a review committee to oversee financial reporting and has engaged Deloitte as its independent auditor for the interim results[89]. Future Plans - The company aims to expand its market presence and enhance product offerings in the upcoming fiscal periods[12]. - The company plans to enhance product development capabilities and expand its product matrix to meet market trends and consumer demands in the second half of 2025[33]. - The company aims to strengthen supply chain collaboration and delivery capabilities to improve overall operational efficiency[33].