Financial Performance - For the six months ended June 30, 2025, the company's revenue was RMB 661,905,000, a decrease of 5.5% compared to RMB 700,919,000 in the same period of 2024[10]. - Gross profit for the same period was RMB 139,143,000, down from RMB 145,417,000, resulting in a gross margin of 21.0%, slightly up from 20.7% in 2024[10]. - Profit before tax increased significantly to RMB 30,303,000, compared to RMB 9,186,000 in the previous year, indicating a growth of 229.5%[10]. - Net profit attributable to shareholders was RMB 24,999,000, a substantial increase from RMB 5,877,000 in 2024, reflecting a growth of 325.5%[10]. - Total revenue for the group was approximately RMB 661.9 million, a decrease of about 5.6% compared to the previous six months ending June 30, 2024[52]. - Operating profit increased significantly to RMB 34,753 thousand, compared to RMB 17,254 thousand in the previous year, marking a growth of 101.5%[118]. - Net profit for the period was RMB 23,614 thousand, a substantial increase from RMB 4,189 thousand in 2024, representing a growth of 463%[119]. - Basic and diluted earnings per share rose to RMB 0.05, compared to RMB 0.01 in the prior year[119]. Assets and Liabilities - Total assets as of June 30, 2025, were RMB 2,028,382,000, a slight decrease from RMB 2,083,635,000 at the end of 2024[10]. - The company's equity attributable to owners was RMB 809,352 thousand, an increase from RMB 791,409 thousand[122]. - As of June 30, 2025, total liabilities amounted to RMB 1,218,015 thousand, a decrease from RMB 1,290,167 thousand as of December 31, 2024, representing a reduction of approximately 5.6%[124]. - The company's debt-to-equity ratio improved from approximately 33.9% as of December 31, 2024, to about 30.9% as of June 30, 2025[82]. - The total value of uncompleted contracts was approximately RMB 1,327.6 million, with the integrated process and packaging equipment system accounting for 53.4% of this value[28]. Revenue Segmentation - Revenue from the Integrated Process and Packaging Equipment Systems segment increased by approximately RMB 8.8 million or 2.9% to about RMB 318.1 million[54]. - Revenue from the Consulting, Digitalization, and Construction segment decreased by approximately RMB 26.5 million or 12.2% to about RMB 190.1 million[55]. - Revenue from the Life Science Equipment and Consumables segment decreased by approximately RMB 21.4 million or 12.2% to about RMB 153.7 million[56]. - Revenue from mainland China accounted for approximately 90.2% of total revenue, down from 93.0% in the previous period[58]. Strategic Focus and Investments - The company is focusing on strategic investments in advanced therapeutic digital infrastructure, particularly in cell and gene therapy and mRNA vaccine technologies[13]. - The market for GLP-1 peptide drugs is experiencing significant growth, driven by increasing demand for obesity treatments, with multiple projects underway[14]. - The company is exploring opportunities in the nuclear medicine sector, with a focus on diagnostic and therapeutic applications, particularly in prostate cancer and neuroendocrine tumors[15]. - The implementation of the "Pharmaceutical Industry Digital Transformation Implementation Plan (2025-2030)" is expected to create new project opportunities in the pharmaceutical sector[14]. Operational Efficiency - The group is focusing on global expansion, particularly in key regions such as the Middle East, North Africa, Southeast Asia, Europe, South America, and North America[51]. - The integrated process and packaging equipment system business group saw a substantial growth of 32.3%, with order amount approximately RMB 569.6 million compared to RMB 430.7 million in 2024[21]. - The consulting, digitalization, and construction business group recorded an order amount of approximately RMB 302.7 million, an increase of about RMB 12.2 million or 4.2%[22]. - The life science equipment and consumables business group experienced a decrease in order amount by approximately RMB 15.4 million or 8.4%, totaling around RMB 169.5 million[24]. Research and Development - The company has launched the ContiPI continuous wet granulation and drying system, enhancing its service platform for innovative drug development[39]. - The company continues to deepen its expertise in complex production processes for APIs, particularly in the fields of peptides and small nucleic acids[19]. - The company has invested in a series of sterile transfer and containment products, which have successfully entered commercial production and been supplied to leading biotech firms[34]. - Research and development expenses decreased by approximately RMB 7.0 million or 29.8% to about RMB 16.5 million, attributed to lower employee costs and material expenses[68]. Corporate Governance and Compliance - The company has adopted and is committed to implementing the corporate governance code, ensuring compliance with the relevant provisions[104]. - The audit committee reviewed the group's unaudited condensed interim financial information for the review period[108]. - The group did not declare any interim dividend for the six months ending June 30, 2025, consistent with the previous year[84]. Employee and Management Changes - The total employee cost for the review period was approximately RMB 178.0 million, representing an increase of about 2.9% from RMB 172.9 million for the six months ending June 30, 2024[87]. - The group employed 1,446 full-time employees as of June 30, 2025, a slight increase from 1,445 employees as of December 31, 2024[87]. - Mr. He Guoqiang's annual salary has been adjusted from HKD 1,024,500 to HKD 819,600, effective from February 26, 2025[99]. - Ms. Zhao Kaishan resigned as an independent non-executive director of Hengfu Holdings Limited, effective from June 16, 2025[99].

[Interim Results Overview](index=3&type=section&id=Interim%20Results%20Overview) The Group's unaudited interim results for the six months ended June 30, 2025, show revenue increased by 11.43% year-on-year to RMB 37.465 billion, but net profit attributable to owners of the parent company decreased by 17.67% year-on-year to RMB 1.03 billion, with the Board recommending no interim dividend payment Interim Results Overview for H1 2025 | Metric | Amount (RMB) | Y-o-Y Change | Notes | | :--- | :--- | :--- | :--- | | Revenue | 37.465 billion | +11.43% | Primarily driven by revenue growth from helicopter and aviation support system products | | Net profit attributable to owners of the parent company | 1.03 billion | -17.67% | Mainly due to a decrease in gross profit margin resulting from changes in revenue structure | | Earnings per share (basic and diluted) | 0.129 | -17.83% | | | Equity attributable to owners of the parent company | 34.341 billion | +0.56% (vs. end of 2024) | | | Interim dividend | Not distributed | - | Board recommends no distribution | [Management Discussion and Analysis](index=4&type=section&id=Management%20Discussion%20and%20Analysis) This section elaborates on the company's business performance, future development strategies, and financial position for the first half of 2025, highlighting a focus on high-quality development and strategic opportunities in the low-altitude economy despite a complex external environment [Business Review](index=4&type=section&id=Business%20Review) In the first half of 2025, the Group focused on its development strategy, actively seized strategic opportunities in the low-altitude economy, steadily advanced its helicopter, trainer aircraft, aviation support systems, and aviation engineering services businesses, and continuously optimized its industrial layout and corporate governance system - The Group faced a complex and uncertain external environment in the first half of 2025, while China's economy remained generally stable and improving[8](index=8&type=chunk) - The company focused on its development strategy, seized strategic opportunities in the low-altitude economy, and is committed to leading technological innovation, advanced manufacturing, and open cooperation in the helicopter and low-altitude economy industries, continuously optimizing its industrial layout[8](index=8&type=chunk) - Helicopter business continuously enhanced core competitiveness, with the AC332 helicopter completing multiple test flights and airworthiness certification steadily progressing; AC series helicopters expanded application scenarios such as aerial tourism and urban management, promoting the systematization of aviation emergency rescue[8](index=8&type=chunk) - Aviation support systems and related businesses continued to promote the transformation of scientific and technological achievements, with AVIC Optoelectronics Civil Aircraft and Industrial Interconnection Industrial Park completed and put into operation, and multiple supporting products completing tests or first flights[9](index=9&type=chunk) - Aviation engineering services business developed steadily, focusing on the digital, intelligent, and green transformation and upgrading of survey and design businesses, and winning the bid for the civil aviation engine maintenance base project[11](index=11&type=chunk) [Business Outlook](index=5&type=section&id=Business%20Outlook) Looking ahead to the second half of 2025, the company anticipates a complex and volatile international environment but will seize the low-altitude economy as a key area for fostering new productive forces through seven strategic initiatives to build a world-class aviation high-tech industrial group - In the second half of 2025, the international environment is complex and volatile, but the low-altitude economy is regarded as a key track for promoting high-quality economic development and fostering new productive forces in China[12](index=12&type=chunk) - The company will seize new development opportunities in the low-altitude economy, cultivate new competitive advantages, create new growth engines, and open up new industrial tracks, fully promoting the construction of a modern aviation industry system[12](index=12&type=chunk) - Strategic initiatives include actively planning the "15th Five-Year Plan" development, continuously optimizing industrial structure, cultivating and strengthening emerging industries, and laying out future industries[13](index=13&type=chunk) - Accelerate the industrial layout of the low-altitude economy, actively cooperate with local governments to establish application demonstration centers, promote deep integration of industry, academia, and research, and expand application scenarios[13](index=13&type=chunk) - Strengthen scientific and technological innovation, optimize the innovation ecosystem, and accelerate the transformation and application of scientific and technological achievements; enhance sustainable competitiveness, consolidate the leading advantages of airborne system businesses, and promote digital and intelligent transformation[13](index=13&type=chunk) [Financial Review](index=7&type=section&id=Financial%20Review) The Group achieved revenue of RMB 37.465 billion in the first half of 2025, a year-on-year increase of 11.43%, primarily due to revenue growth from helicopter and aviation support system products; however, net profit attributable to owners of the parent company decreased by 17.67% due to a decline in gross profit margin from changes in revenue structure, while liquidity remained ample and the gearing ratio at a reasonable level [Revenue](index=7&type=section&id=Revenue) The Group's revenue for the first half of 2025 was RMB 37.465 billion, an increase of 11.43% compared to the same period last year, primarily driven by year-on-year growth in revenue from helicopter and aviation support system products Total Revenue Comparison | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Y-o-Y Growth Rate | | :--- | :--- | :--- | :--- | | Revenue | 37,465 | 33,621 | 11.43% | [Segment Information](index=7&type=section&id=Segment%20Information) The Group's business is divided into three segments: Aviation Mainframes, Aviation Support Systems and Related Businesses, and Aviation Engineering Services; the Aviation Mainframes segment saw significant revenue growth and a substantial increase in segment profit, while Aviation Support Systems and Related Businesses experienced steady revenue growth but a decline in segment profit, and Aviation Engineering Services maintained stable revenue with a slight decrease in segment profit Revenue and Segment Profit Comparison by Business Segment (H1 2025 vs H1 2024) | Segment | H1 2025 Revenue (RMB billion) | H1 2024 Revenue (RMB billion) | Revenue Y-o-Y Growth Rate | Revenue Share | H1 2025 Segment Profit (RMB billion) | H1 2024 Segment Profit (RMB billion) | Segment Profit Y-o-Y Growth Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Aviation Mainframes | 10.339 | 7.655 | 35.06% | 27.60% | 0.439 | 0.265 | 65.66% | | Aviation Support Systems and Related Businesses | 22.583 | 21.386 | 5.60% | 60.28% | 2.609 | 3.417 | -23.65% | | Aviation Engineering Services | 4.543 | 4.580 | -0.81% | 12.12% | 0.188 | 0.205 | -8.29% | - Revenue growth in the Aviation Mainframes segment was primarily due to an increase in helicopter product sales year-on-year; segment profit growth was mainly due to increased benefits from the VAT additional deduction policy[21](index=21&type=chunk)[22](index=22&type=chunk) - The decline in segment profit for Aviation Support Systems and Related Businesses was mainly due to a year-on-year decrease in gross profit margin resulting from changes in product revenue structure[22](index=22&type=chunk) [Gross Profit](index=9&type=section&id=Gross%20Profit) The Group's gross profit for the first half of 2025 was RMB 7.576 billion, a year-on-year decrease of 5.85%, with a comprehensive gross profit margin of 20.22%, down 3.71 percentage points from the same period last year, primarily due to changes in revenue structure Gross Profit and Gross Profit Margin Comparison | Metric | H1 2025 (RMB billion) | H1 2024 (RMB billion) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Gross profit | 7.576 | 8.047 | -5.85% | | Comprehensive gross profit margin | 20.22% | 23.93% | -3.71 percentage points | - The decrease in gross profit was mainly due to changes in revenue structure during the period, leading to a year-on-year decline in gross profit margin[23](index=23&type=chunk) [Selling Expenses](index=9&type=section&id=Selling%20Expenses) Selling expenses for the first half of 2025 were RMB 339 million, a year-on-year increase of 3.04%, primarily due to increased remuneration for sales personnel at some subsidiaries, while the proportion of selling expenses to revenue slightly decreased Selling Expenses Comparison | Metric | H1 2025 (RMB billion) | H1 2024 (RMB billion) | Y-o-Y Growth Rate | Share of Revenue (2025) | Share of Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | | Selling expenses | 0.339 | 0.329 | 3.04% | 0.90% | 0.98% | - The increase in selling expenses was mainly due to a year-on-year increase in remuneration for sales personnel at some subsidiaries[24](index=24&type=chunk) [Administrative Expenses](index=9&type=section&id=Administrative%20Expenses) Administrative expenses for the first half of 2025 were RMB 2.064 billion, a year-on-year decrease of 4.40%, primarily due to a decrease in equity incentive amortization expenses at AVIC Optoelectronics, resulting in a 0.91 percentage point decrease in the proportion of administrative expenses to revenue Administrative Expenses Comparison | Metric | H1 2025 (RMB billion) | H1 2024 (RMB billion) | Y-o-Y Change Rate | Share of Revenue (2025) | Share of Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | | Administrative expenses | 2.064 | 2.159 | -4.40% | 5.51% | 6.42% | - The decrease in administrative expenses was mainly due to a year-on-year decrease in equity incentive amortization expenses at AVIC Optoelectronics, a subsidiary of the company, during the period[25](index=25&type=chunk) [R&D Expenses](index=9&type=section&id=R%26D%20Expenses) R&D expenses for the first half of 2025 were RMB 2.170 billion, a year-on-year increase of 6.84%, primarily due to increased R&D investment by some subsidiaries, while the proportion of R&D expenses to revenue slightly decreased R&D Expenses Comparison | Metric | H1 2025 (RMB billion) | H1 2024 (RMB billion) | Y-o-Y Growth Rate | Share of Revenue (2025) | Share of Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | | R&D expenses | 2.170 | 2.031 | 6.84% | 5.79% | 6.04% | - The increase in R&D expenses was mainly due to increased R&D investment by some subsidiaries during the period[26](index=26&type=chunk) [Finance Costs](index=9&type=section&id=Finance%20Costs) Finance costs for the first half of 2025 were RMB -55 million, an increase of RMB 20 million compared to RMB -75 million in the same period last year, primarily due to decreased interest income from lower average cash balances and deposit rates, coupled with increased interest expenses from higher debt financing by some subsidiaries Finance Costs Comparison | Metric | H1 2025 (RMB billion) | H1 2024 (RMB billion) | Y-o-Y Change Rate | | :--- | :--- | :--- | :--- | | Finance costs | -0.055 | -0.075 | 26.67% | - The increase in finance costs was mainly due to a year-on-year decrease in interest income from lower average cash balances and deposit rates, while interest expenses increased due to higher debt financing by some subsidiaries[27](index=27&type=chunk) [Net Profit Attributable to Owners of the Parent Company](index=10&type=section&id=Net%20Profit%20Attributable%20to%20Owners%20of%20the%20Parent%20Company) Net profit attributable to owners of the parent company for the first half of 2025 was RMB 1.03 billion, a year-on-year decrease of 17.67%, primarily impacted by a decline in gross profit margin due to changes in revenue structure Net Profit Attributable to Owners of the Parent Company Comparison | Metric | H1 2025 (RMB billion) | H1 2024 (RMB billion) | Y-o-Y Change Rate | | :--- | :--- | :--- | :--- | | Net profit attributable to owners of the parent company | 1.030 | 1.251 | -17.67% | - The decrease in net profit was mainly due to changes in revenue structure during the period, leading to a year-on-year decline in gross profit margin and a decrease in gross profit[28](index=28&type=chunk) [Liquidity and Funding Sources](index=10&type=section&id=Liquidity%20and%20Funding%20Sources) As of June 30, 2025, the Group's cash and cash equivalents totaled RMB 30.390 billion, with total borrowings of RMB 19.196 billion, of which short-term borrowings accounted for a higher proportion; bank borrowings increased while other borrowings decreased Liquidity and Borrowings (As of June 30, 2025) | Metric | Amount (RMB billion) | Change from beginning of period | | :--- | :--- | :--- | | Cash and cash equivalents | 30.390 | Decrease | | Total borrowings | 19.196 | | | Short-term borrowings | 12.351 | | | Current portion of long-term borrowings | 2.596 | | | Non-current portion of long-term borrowings | 4.249 | | | Bank borrowings | 7.192 | Increase of 2.461 billion RMB | | Other borrowings | 12.004 | Decrease of 1.023 billion RMB | - The average interest rate for bank borrowings was **2.2%**[29](index=29&type=chunk) [Pledged and Mortgaged Assets](index=10&type=section&id=Pledged%20and%20Mortgaged%20Assets) As of June 30, 2025, the Group's total pledged and mortgaged borrowings amounted to RMB 199 million, primarily secured by buildings and pledged by notes receivable Pledged and Mortgaged Assets (As of June 30, 2025) | Borrowing Type | Amount (RMB billion) | Collateral/Pledge | Net Book Value (RMB billion) | | :--- | :--- | :--- | :--- | | Mortgaged borrowings | 0.092 | Buildings | 0.007 | | Pledged borrowings | 0.107 | Notes receivable | 0.107 | | Total | 0.199 | | | [Gearing Ratio](index=10&type=section&id=Gearing%20Ratio) As of June 30, 2025, the Group's gearing ratio was 9.62%, an increase from 8.79% at the end of 2024 Gearing Ratio Comparison | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing ratio | 9.62% | 8.79% | [Exchange Rate Risk](index=10&type=section&id=Exchange%20Rate%20Risk) The Group primarily operates in China, with most transactions settled in RMB, involving exchange rate risks related to USD, EUR, and HKD, but the Board believes exchange rate risk will not have a material adverse effect on financial performance, and no foreign currency hedging instruments were used during the reporting period - The Group primarily conducts its business operations in China, with most transactions settled in RMB[32](index=32&type=chunk) - Assets, liabilities, and transactions arising from operations involving exchange rate risk are mainly related to USD, EUR, and HKD[32](index=32&type=chunk) - The Board believes that the Group's exchange rate risk will not have a material adverse effect on the Group's financial position[32](index=32&type=chunk) - During the reporting period, the Group did not use any foreign currency hedging instruments[33](index=33&type=chunk) [Equity Disclosure and Other Information](index=11&type=section&id=Equity%20Disclosure%20and%20Other%20Information) This chapter discloses changes in the company's directors, supervisors, and senior management, employee information, and compliance with the Model Code for Securities Transactions and Corporate Governance Code during the reporting period, detailing shareholdings of directors, supervisors, and major shareholders, and mentioning significant matters such as the equity transfer of AVIC Helicopter and the proposed issuance of exchangeable corporate bonds [Changes in Directors, Supervisors, and Senior Management](index=11&type=section&id=Changes%20in%20Directors,%20Supervisors,%20and%20Senior%20Management) During the reporting period, Ms. Hu Shiwei ceased to be a member of the Audit and Risk Management Committee and was appointed as a member of the Nomination Committee; Mr. Zhou Xunwen was appointed as a member of the Audit and Risk Management Committee; and Mr. Xu Gang resigned as a non-executive director due to work arrangements - Ms. Hu Shiwei ceased to be a member of the Audit and Risk Management Committee and was appointed as a member of the Nomination Committee effective March 28, 2025[35](index=35&type=chunk) - Mr. Zhou Xunwen was appointed as a member of the Audit and Risk Management Committee[35](index=35&type=chunk) - Mr. Xu Gang resigned as a non-executive director of the company on May 20, 2025[35](index=35&type=chunk) [Employees](index=11&type=section&id=Employees) As of June 30, 2025, the Group had 75,142 employees; employee costs for the reporting period were RMB 6.669 billion, a slight year-on-year increase of 0.51%, with the company's remuneration policy and employee training programs consistent with those disclosed in the 2024 annual report Employees and Employee Costs Comparison | Metric | June 30, 2025 | H1 2024 (RMB billion) | Y-o-Y Growth Rate | | :--- | :--- | :--- | :--- | | Number of employees | 75,142 | | | | Employee costs | 6.669 billion | 6.635 billion | 0.51% | - The company's remuneration policy and employee training programs are consistent with the content disclosed in the 2024 annual report[37](index=37&type=chunk) [Model Code for Securities Transactions by Directors and Supervisors](index=11&type=section&id=Model%20Code%20for%20Securities%20Transactions%20by%20Directors%20and%20Supervisors) The company has adopted the "Model Code for Securities Transactions by Directors of Listed Issuers" in Appendix C3 of the HKEX Listing Rules and its internal management measures, and all directors and supervisors confirmed compliance with the code during the reporting period after specific inquiries - The company has adopted Appendix C3 "Model Code for Securities Transactions by Directors of Listed Issuers" of the HKEX Listing Rules and the company's "Management Measures for Stock Trading by Directors, Supervisors, Senior Management, and Employees"[38](index=38&type=chunk) - Following specific inquiries, all directors and supervisors of the company confirmed their compliance with the Model Code for the six months ended June 30, 2025[38](index=38&type=chunk) [Corporate Governance Code](index=11&type=section&id=Corporate%20Governance%20Code) The company strictly implements applicable regulatory laws, regulations, and its Articles of Association, operating in a standardized manner, and the Board believes the company has complied with the principles and code provisions set out in Part 2 of Appendix C1 "Corporate Governance Code" of the Listing Rules - The company strictly implements various applicable regulatory laws, regulations, and its Articles of Association, operating in a standardized manner[39](index=39&type=chunk) - The Board believes that the company has complied with the principles and code provisions set out in Part 2 of Appendix C1 "Corporate Governance Code" of the Listing Rules[39](index=39&type=chunk) [Interests of Directors, Supervisors, and Chief Executive in Securities of the Company and its Associated Corporations](index=12&type=section&id=Interests%20of%20Directors,%20Supervisors,%20and%20Chief%20Executive%20in%20Securities%20of%20the%20Company%20and%20its%20Associated%20Corporations) As of June 30, 2025, except for Directors Yan Lingxi and Zhou Xunwen holding a small number of H shares, no directors, supervisors, or the chief executive of the company held any disclosable interests or short positions in the securities of the company or its associated corporations Directors' Shareholdings (As of June 30, 2025) | Name | Share Type | Capacity | Number of Shares Held | Approximate Percentage of Issued Share Capital | Nature of Interest | | :--- | :--- | :--- | :--- | :--- | :--- | | Yan Lingxi (Director) | H shares | Beneficial owner | 267,740 | 0.003% | Long position | | Zhou Xunwen (Director) | H shares | Beneficial owner | 66,966 | 0.0008% | Long position | - Except for those disclosed above, no directors, supervisors, or the chief executive of the company held any disclosable interests or short positions in the shares, underlying shares, and/or debentures of the company and/or any of its associated corporations[40](index=40&type=chunk) [Major Shareholders' Shareholdings](index=13&type=section&id=Major%20Shareholders'%20Shareholdings) As of June 30, 2025, Aviation Industry Corporation of China remained the company's largest shareholder, holding 56.40% of H shares and 70.99% of domestic shares; National Military-Civil Fusion Industry Investment Fund and Tianjin Free Trade Zone Investment Co., Ltd. were also major domestic share shareholders Major Shareholders' Shareholdings (As of June 30, 2025) | Shareholder Name | Share Type | Capacity | Number of Shares | Approximate Percentage of Issued Share Type | Nature of Interest | | :--- | :--- | :--- | :--- | :--- | :--- | | Aviation Industry Corporation of China | H shares | Beneficial owner; controlled corporation interest | 3,503,070,569 | 56.40% | Long position | | Aviation Industry Corporation of China | Domestic shares | Beneficial owner | 1,250,899,906 | 70.99% | Long position | | National Military-Civil Fusion Industry Investment Fund Co., Ltd. | Domestic shares | Beneficial owner | 261,522,000 | 14.84% | Long position | | Tianjin Free Trade Zone Investment Co., Ltd. | Domestic shares | Beneficial owner | 249,769,500 | 14.17% | Long position | - Aviation Industry Corporation of China holds H shares directly and indirectly through wholly-owned/non-wholly-owned subsidiaries[44](index=44&type=chunk) - The issuance of domestic shares to the National Industry Investment Fund was completed on July 3, 2023[44](index=44&type=chunk) [Audit and Risk Management Committee](index=14&type=section&id=Audit%20and%20Risk%20Management%20Committee) The Audit and Risk Management Committee is responsible for overseeing the company's financial operations, audit procedures, and risk management, and has reviewed the Group's unaudited interim consolidated financial statements for the six months ended June 30, 2025 - The Audit and Risk Management Committee assists the Board in independently overseeing the company's financial operations, audit procedures, and risk management work[45](index=45&type=chunk) - The Committee has reviewed the Group's unaudited interim consolidated financial statements for the six months ended June 30, 2025[46](index=46&type=chunk) [Other Matters](index=14&type=section&id=Other%20Matters) In March 2025, the company completed the acquisition of a 2.34% A-share stake in AVIC Helicopter held by Harbin Aircraft Industry Group, increasing its direct shareholding to 50.90%; additionally, the Board proposed a non-public issuance of exchangeable corporate bonds not exceeding RMB 1 billion, with a portion of AVIC Helicopter's A-shares as underlying assets, to supplement working capital, expecting AVIC Helicopter to remain a non-wholly-owned subsidiary after conversion - In March 2025, the company completed the acquisition of 19,186,952 A-shares of AVIC Helicopter (accounting for 2.34% of total share capital) held by Harbin Aircraft Industry Group, increasing its direct shareholding to **50.90%**[47](index=47&type=chunk) - The Board proposed a non-public issuance of exchangeable corporate bonds not exceeding **RMB 1 billion**, with a portion of the company's A-shares in AVIC Helicopter as underlying assets[48](index=48&type=chunk) - The raised funds are intended to supplement working capital, and AVIC Helicopter is expected to remain a non-wholly-owned subsidiary of the company after the full conversion of the exchangeable corporate bonds[48](index=48&type=chunk) [Purchase, Sale, and Redemption of Listed Securities](index=15&type=section&id=Purchase,%20Sale,%20and%20Redemption%20of%20Listed%20Securities) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities, and the company held no treasury shares - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[49](index=49&type=chunk) - As of June 30, 2025, the company held no treasury shares[50](index=50&type=chunk) [Consolidated Statement of Financial Position](index=16&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total consolidated assets amounted to RMB 199.532 billion, a slight decrease from the end of 2024, with total current assets of RMB 155.572 billion and total non-current assets of RMB 43.960 billion; total liabilities were RMB 101.789 billion, and total shareholders' equity was RMB 97.743 billion Consolidated Statement of Financial Position Key Data (As of June 30, 2025 vs December 31, 2024) | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Total assets | 199,532,381,277 | 202,044,106,950 | -1.24% | | Total current assets | 155,572,331,818 | 158,761,363,942 | -2.01% | | Total non-current assets | 43,960,049,459 | 43,282,743,008 | +1.56% | | Total liabilities | 101,789,243,680 | 105,395,895,072 | -3.33% | | Total shareholders' equity | 97,743,137,597 | 96,648,211,878 | +1.13% | | Total equity attributable to owners of the parent company | 34,340,655,830 | 34,147,967,680 | +0.56% | - Cash and bank balances decreased from **RMB 41.322 billion** at the beginning of the period to **RMB 32.144 billion**[51](index=51&type=chunk) - Accounts receivable increased from **RMB 48.629 billion** at the beginning of the period to **RMB 55.993 billion**[51](index=51&type=chunk) - Short-term borrowings increased from **RMB 9.346 billion** at the beginning of the period to **RMB 11.982 billion**[53](index=53&type=chunk) [Company Statement of Financial Position](index=20&type=section&id=Company%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's (parent company) total assets amounted to RMB 18.880 billion, a slight increase from the end of 2024, with total current assets of RMB 1.810 billion and total non-current assets of RMB 17.069 billion; total liabilities were RMB 256 million, and total shareholders' equity was RMB 18.624 billion Company Statement of Financial Position Key Data (As of June 30, 2025 vs December 31, 2024) | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Total assets | 18,879,621,498 | 18,654,161,377 | +1.21% | | Total current assets | 1,810,322,718 | 2,381,586,163 | -23.90% | | Total non-current assets | 17,069,298,780 | 16,272,575,214 | +4.90% | | Total liabilities | 255,707,664 | 360,497,811 | -29.07% | | Total shareholders' equity | 18,623,913,834 | 18,293,663,566 | +1.80% | - Long-term equity investments increased from **RMB 14.119 billion** at the beginning of the period to **RMB 14.873 billion**[55](index=55&type=chunk) - Total current liabilities decreased from **RMB 158 million** at the beginning of the period to **RMB 36 million**[57](index=57&type=chunk) [Consolidated Statement of Comprehensive Income](index=23&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) The Group's consolidated total operating revenue for the first half of 2025 was RMB 37.465 billion, a year-on-year increase of 11.43%; however, both operating profit and net profit decreased, with net profit attributable to owners of the parent company at RMB 1.03 billion, a year-on-year decrease of 17.67%, and basic and diluted earnings per share both at RMB 0.129 Consolidated Statement of Comprehensive Income Key Data (H1 2025 vs H1 2024) | Item | H1 2025 (RMB) | H1 2024 (RMB) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Total operating revenue | 37,465,251,870 | 33,621,275,690 | +11.43% | | Total operating costs | 34,711,799,167 | 30,226,289,082 | +14.84% | | Operating profit | 3,108,402,127 | 3,714,093,919 | -16.31% | | Total profit | 3,099,033,323 | 3,729,155,935 | -16.90% | | Net profit | 2,806,659,099 | 3,389,919,066 | -17.19% | | Net profit attributable to owners of the parent company | 1,030,426,079 | 1,251,336,293 | -17.67% | | Basic earnings per share (RMB/share) | 0.129 | 0.157 | -17.83% | - Operating costs increased by **16.87%** year-on-year, and taxes and surcharges increased by **46.08%** year-on-year[60](index=60&type=chunk) - Other income increased by **54.33%** year-on-year, and investment income increased by **16.53%** year-on-year[60](index=60&type=chunk) - Credit impairment losses and asset impairment losses both increased, negatively impacting profit[60](index=60&type=chunk) [Company Statement of Comprehensive Income](index=26&type=section&id=Company%20Statement%20of%20Comprehensive%20Income) The company's (parent company) operating revenue for the first half of 2025 was RMB 309,800, an increase from the same period last year; net profit was RMB 923 million, a year-on-year increase of 13.09%, with investment income being the primary source of the company's profit Company Statement of Comprehensive Income Key Data (H1 2025 vs H1 2024) | Item | H1 2025 (RMB) | H1 2024 (RMB) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Operating revenue | 309,791 | 154,895 | +100.00% | | Operating profit | 921,972,372 | 805,251,454 | +14.49% | | Net profit | 922,999,572 | 816,119,535 | +13.09% | - Investment income was **RMB 920 million**, a year-on-year increase of **13.82%**, making it the main contributor to the company's profit[63](index=63&type=chunk) - Finance costs were negative, primarily due to high interest income[63](index=63&type=chunk) [Consolidated Statement of Cash Flows](index=28&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) The Group's net cash flow from operating activities for the first half of 2025 was RMB -7.217 billion, an improvement from RMB -10.209 billion in the same period last year; net cash flow from investing activities was RMB -880 million, and net cash flow from financing activities was RMB -875 million, with cash and cash equivalents balance at period-end of RMB 30.390 billion Consolidated Statement of Cash Flows Key Data (H1 2025 vs H1 2024) | Item | H1 2025 (RMB) | H1 2024 (RMB) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Subtotal of cash inflows from operating activities | 33,152,270,044 | 28,834,690,945 | +14.94% | | Subtotal of cash outflows from operating activities | 40,368,883,985 | 39,043,815,329 | +3.40% | | Net cash flow from operating activities | -7,216,613,941 | -10,209,124,384 | Improved by 29.31% | | Net cash flow from investing activities | -880,037,092 | -2,304,649,891 | Improved by 61.82% | | Net cash flow from financing activities | -875,249,793 | 2,340,475,130 | Turned to net outflow | | Net increase in cash and cash equivalents | -8,962,423,450 | -10,169,383,731 | Improved by 11.87% | | Cash and cash equivalents at period-end | 30,390,151,848 | 27,010,503,644 | +12.51% | - Cash received from sales of goods and rendering of services increased by **16.55%** year-on-year[65](index=65&type=chunk) - Net cash flow from financing activities turned from positive to negative, mainly due to a significant increase in cash paid for debt repayment[66](index=66&type=chunk) [Company Statement of Cash Flows](index=31&type=section&id=Company%20Statement%20of%20Cash%20Flows) The company's (parent company) net cash flow from operating activities for the first half of 2025 was RMB -138 million, a deterioration from RMB -57 million in the same period last year; net cash flow from investing activities was RMB 453 million, and net cash flow from financing activities was RMB -634 million, with cash and cash equivalents balance at period-end of RMB 766 million Company Statement of Cash Flows Key Data (H1 2025 vs H1 2024) | Item | H1 2025 (RMB) | H1 2024 (RMB) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Net cash flow from operating activities | -138,164,441 | -56,893,721 | Deteriorated by 142.84% | | Net cash flow from investing activities | 452,550,171 | 380,390,032 | +19.00% | | Net cash flow from financing activities | -633,944,029 | -682,125,218 | Improved by 7.06% | | Cash and cash equivalents at period-end | 765,955,534 | 722,745,751 | +5.98% | - Cash inflows from investing activities primarily came from recovery of investments and investment income[68](index=68&type=chunk) - Cash outflows from financing activities were mainly for distribution of dividends, profits, or payment of interest[69](index=69&type=chunk) [Consolidated Statement of Changes in Equity](index=33&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) The Group's total consolidated shareholders' equity for the first half of 2025 amounted to RMB 97.743 billion, an increase of 1.13% from the beginning of the period; total equity attributable to owners of the parent company was RMB 34.341 billion, an increase of 0.56% from the beginning of the period, with total comprehensive income of RMB 3.050 billion, of which RMB 1.112 billion was attributable to owners of the parent company Consolidated Statement of Changes in Equity Key Data (H1 2025) | Item | Balance at beginning of period (RMB) | Change during the period (RMB) | Balance at end of period (RMB) | | :--- | :--- | :--- | :--- | | Total shareholders' equity | 96,648,211,878 | 1,094,925,719 | 97,743,137,597 | | Total equity attributable to owners of the parent company | 34,147,967,680 | 192,688,150 | 34,340,655,830 | | Total comprehensive income | | 3,050,464,979 | | | Total comprehensive income attributable to owners of the parent company | | 1,111,702,889 | | - Capital contributions and reductions by shareholders during the period led to a decrease of **RMB 379 million** in equity attributable to owners of the parent company[70](index=70&type=chunk) - Profit distribution led to a decrease of **RMB 646 million** in equity attributable to owners of the parent company[70](index=70&type=chunk) [Company Statement of Changes in Equity](index=35&type=section&id=Company%20Statement%20of%20Changes%20in%20Equity) The company's (parent company) total shareholders' equity for the first half of 2025 amounted to RMB 18.624 billion, an increase of 1.80% from the beginning of the period; total comprehensive income was RMB 974 million, and profit distribution led to a decrease of RMB 646 million in shareholders' equity Company Statement of Changes in Equity Key Data (H1 2025) | Item | Balance at beginning of period (RMB) | Change during the period (RMB) | Balance at end of period (RMB) | | :--- | :--- | :--- | :--- | | Total shareholders' equity | 18,293,663,565 | 330,044,884 | 18,623,708,449 | | Total comprehensive income | | 974,088,510 | | | Profit distribution | | -645,801,194 | | - Other comprehensive income increased by **RMB 51.0889 million** during the period[73](index=73&type=chunk) [Notes to the Financial Statements](index=37&type=section&id=Notes%20to%20the%20Financial%20Statements) This chapter provides detailed notes to the Group's financial statements, covering the company's basic information, basis of financial statement preparation, significant accounting policies and estimates, notes to major items in the consolidated financial statements, changes in consolidation scope, fair value disclosures, related parties and related party transactions, contingent liabilities, commitments, post-balance sheet events, and segment information, offering essential context and details for understanding the financial data [Basic Information of the Company](index=37&type=section&id=Basic%20Information%20of%20the%20Company) AVIC International Holding Corporation was registered in Beijing on April 30, 2003, and listed on the Hong Kong Stock Exchange in October of the same year; the company's registered capital is RMB 7,972,854,242, primarily engaged in R&D, production, and sales of aviation products, and providing aviation engineering services, with Aviation Industry Corporation of China as both the controlling shareholder and ultimate controlling party - The company was registered in Beijing on April 30, 2003, and listed on the Hong Kong Stock Exchange on October 30, 2003[76](index=76&type=chunk) - The company's registered capital is **RMB 7,972,854,242**[76](index=76&type=chunk) - The Group's main business activities are: research, development, production, and sales of aviation products, as well as providing aviation engineering planning, design, consulting, construction, and operation services[80](index=80&type=chunk) - The company's controlling shareholder is Aviation Industry Corporation of China, which is also the ultimate controlling party[81](index=81&type=chunk) [Basis of Financial Statement Preparation](index=38&type=section&id=Basis%20of%20Financial%20Statement%20Preparation) These financial statements are prepared on a going concern basis in accordance with China's Accounting Standards for Business Enterprises and relevant regulations, and are measured at historical cost, except for certain financial instruments measured at fair value; management has assessed the going concern ability for the next 12 months and considers the basis of preparation reasonable - These financial statements are prepared on a going concern basis, in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance and relevant regulations, based on actual transactions and events[83](index=83&type=chunk) - In preparing the financial statements, the Group has fully assessed its ability to continue as a going concern for the next 12 months from the balance sheet date and considers the preparation on a going concern basis to be reasonable[83](index=83&type=chunk) [Significant Accounting Policies and Accounting Estimates](index=39&type=section&id=Significant%20Accounting%20Policies%20and%20Accounting%20Estimates) The Group's financial statements adhere to Accounting Standards for Business Enterprises and adopt the historical cost measurement principle, with exceptions for certain financial instruments; the accounting policies for the current period are consistent with those disclosed in the 2024 annual consolidated financial statements, and major taxes include VAT, urban maintenance and construction tax, education surcharge, and corporate income tax, subject to different rates - The Group's financial statements are measured at historical cost, except for certain financial instruments measured at fair value[84](index=84&type=chunk) - The accounting policies used in preparing the Group's interim consolidated financial statements for the six months ended June 30, 2025, are consistent with those followed in preparing the Group's annual consolidated financial statements for the year ended December 31, 2024[85](index=85&type=chunk) Major Taxes and Tax Rates | Tax Type | Tax Rate (%) | | :--- | :--- | | Value-added tax | 13, 9, 6, 5, 3, 0 | | Urban maintenance and construction tax | 7, 5 | | Education surcharge | 3 | | Local education surcharge | 2 | | Corporate income tax | 25, 20, 15 | | Property tax | 12, 1.2 | | Hong Kong profits tax | 16.5 | | Macau income tax | 0-12 | | Other countries/regions profits tax | 20-31.925 | [Notes to Major Items in Consolidated Financial Statements](index=40&type=section&id=Notes%20to%20Major%20Items%20in%20Consolidated%20Financial%20Statements) This section provides detailed notes to major items in the consolidated financial statements, including cash and bank balances, various receivables and payables, inventories, contract assets, long-term equity investments, fixed assets, intangible assets, borrowings, share capital, and various profit and loss expenses; relevant financial data for the prior year's corresponding period has been restated due to adjustments in consolidation scope and interpretations of accounting standards [Cash and Bank Balances](index=41&type=section&id=Cash%20and%20Bank%20Balances) As of June 30, 2025, the Group's total cash and bank balances amounted to RMB 32.144 billion, a decrease from RMB 41.322 billion at the end of 2024, with bank deposits accounting for the vast majority, and funds deposited with AVIC Finance Company totaling RMB 23.296 billion Cash and Bank Balances Composition (As of June 30, 2025 vs December 31, 2024) | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Cash on hand | 314,612 | 320,567 | | Bank deposits | 31,895,112,756 | 40,984,056,624 | | Other cash and bank balances | 248,604,982 | 337,766,598 | | Total | 32,144,032,350 | 41,322,143,789 | | Of which: Funds deposited with AVIC Finance Company | 23,296,242,777 | 28,971,478,262 | - The Group's funds deposited overseas are not subject to repatriation restrictions[89](index=89&type=chunk) [Financial Assets Held for Trading](index=41&type=section&id=Financial%20Assets%20Held%20for%20Trading) As of June 30, 2025, the Group's total financial assets held for trading amounted to RMB 2.527 billion, a decrease from RMB 3.311 billion at the end of 2024, primarily comprising bank wealth management products and equity instrument investments Financial Assets Held for Trading Composition (As of June 30, 2025 vs December 31, 2024) | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Financial assets measured at fair value through profit or loss | 2,527,371,647 | 3,310,715,928 | | Of which: Equity instrument investments | 27,371,647 | 24,462,750 | | Bank wealth management | 2,500,000,000 | 3,286,253,178 | - Equity instrument investments primarily consist of fund products and equity investments in other companies, while bank wealth management amounts are all structured deposits[90](index=90&type=chunk) [Notes Receivable](index=41&type=section&id=Notes%20Receivable) As of June 30, 2025, the Group's total notes receivable amounted to RMB 5.047 billion, a significant decrease from RMB 10.584 billion at the end of 2024, with both bank acceptance bills and commercial acceptance bills showing a notable decline; a bad debt provision of RMB -75.5069 million was made during the period Notes Receivable Classification (As of June 30, 2025 vs December 31, 2024) | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Bank acceptance bills | 2,119,586,968 | 3,322,807,413 | | Commercial acceptance bills | 2,927,602,938 | 7,261,055,840 | | Total | 5,047,189,906 | 10,583,863,253 | Pledged Notes Receivable (As of June 30, 2025) | Item | Pledged Amount (RMB) | | :--- | :--- | | Bank acceptance bills | 737,059,477 | | Commercial acceptance bills | 228,325,994 | | Total | 965,385,471 | - A bad debt provision of **RMB -75,506,904** was made for notes receivable during the period[96](index=96&type=chunk) [Accounts Receivable](index=44&type=section&id=Accounts%20Receivable) As of June 30, 2025, the Group's net accounts receivable amounted to RMB 55.993 billion, an increase from RMB 48.629 billion at the end of 2024, with total bad debt provisions amounting to RMB 2.449 billion, with RMB 361 million provided during the period, and accounts receivable within 1 year having the highest proportion Net Accounts Receivable and Impairment Provisions (As of June 30, 2025 vs December 31, 2024) | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Accounts receivable | 58,442,055,658 | 50,720,744,268 | | Less: Impairment provisions | 2,449,197,665 | 2,091,284,734 | | Net accounts receivable | 55,992,857,993 | 48,629,459,534 | Accounts Receivable by Age (As of June 30, 2025) | Age | Book Balance (RMB) | Bad Debt Provision (RMB) | Provision Rate (%) | | :--- | :--- | :--- | :--- | | Within 1 year (inclusive) | 47,210,152,619 | 423,943,431 | 0.90 | | 1-2 years | 8,512,376,131 | 686,684,728 | 8.07 | | 2-3 years | 1,366,818,161 | 433,966,307 | 31.75 | | Over 3 years | 1,099,398,336 | 652,202,307 | 59.32 | - A bad debt provision of **RMB 360,535,328** was made for accounts receivable during the period, and **RMB 2,424,669** was actually written off[103](index=103&type=chunk) [Prepayments](index=47&type=section&id=Prepayments) As of June 30, 2025, the Group's total prepayments amounted to RMB 6.249 billion, a decrease from RMB 6.663 billion at the end of 2024, with prepayments aged over 3 years accounting for the highest proportion at 55.43%, primarily due to incomplete contract settlements Prepayments Age Distribution (As of June 30, 2025 vs December 31, 2024) | Item | June 30, 2025 (RMB) | Proportion (%) | December 31, 2024 (RMB) | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Within 1 year (inclusive) | 2,199,689,658 | 35.20 | 2,694,717,336 | 40.44 | | 1-2 years | 495,204,217 | 7.92 | 439,716,028 | 6.60 | | 2-3 years | 90,561,344 | 1.45 | 153,102,460 | 2.30 | | Over 3 years | 3,463,910,725 | 55.43 | 3,375,421,598 | 50.66 | | Total | 6,249,365,944 | 100.00 | 6,662,957,422 | 100.00 | - Prepayments aged over 1 year and significant in amount were not settled in time, mainly because contracts had not yet been fully settled[106](index=106&type=chunk) [Other Receivables](index=48&type=section&id=Other%20Receivables) As of June 30, 2025, the Group's total other receivables amounted to RMB 478 million, an increase from RMB 429 million at the end of 2024, including dividends receivable of RMB 19.8196 million and net other receivables of RMB 458 million; a bad debt provision of RMB 10.2435 million was made during the period Other Receivables Composition (As of June 30, 2025 vs December 31, 2024) | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Dividends receivable | 19,819,575 | 10,756,337 | | Other receivables | 457,761,247 | 418,440,558 | | Total | 477,580,822 | 429,196,895 | Other Receivables by Nature of Payment (As of June 30, 2025) | Nature of Payment | Amount (RMB) | | :--- | :--- | | Current accounts | 310,482,648 | | Deposits, guarantees | 123,455,791 | | Petty cash and personal loans | 28,880,381 | | Payments collected/paid on behalf (advances) | 43,352,910 | | Equipment engineering payments | 2,000,000 | | Other | 58,476,526 | | Total | 566,648,256 | - A bad debt provision of **RMB 10,243,492** was made for other receivables during the period, and **RMB 3,500,800** was written off[118](index=118&type=chunk) [Inventories](index=54&type=section&id=Inventories) As of June 30, 2025, the Group's inventories had a book value of RMB 40.906 billion, an increase from RMB 37.808 billion at the end of 2024, with raw materials, work-in-progress, and finished goods being the main components; total impairment provisions for inventories and contract costs amounted to RMB 1.310 billion Inventories Composition and Impairment Provisions (As of June 30, 2025 vs December 31, 2024) | Item | June 30, 2025 Book Value (RMB) | December 31, 2024 Book Value (RMB) | | :--- | :--- | :--- | | Raw materials | 12,748,098,405 | 13,207,506,719 | | Work-in-progress | 18,904,991,446 | 15,523,556,474 | | Finished goods | 7,284,996,858 | 6,657,438,619 | | Revolving materials | 634,836,091 | 634,987,134 | | Contract costs | 123,465,689 | 73,727,125 | | Other | 1,209,326,917 | 1,710,478,632 | | Total | 40,905,715,406 | 37,807,694,703 | | Total impairment provisions for inventories/contract costs | 1,309,738,361 | 1,264,929,378 | [Contract Assets](index=55&type=section&id=Contract%20Assets) As of June 30, 2025, the Group's contract assets had a book value of RMB 9.989 billion, an increase from RMB 8.157 billion at the end of 2024, with Aviation Mainframes, Aviation Engineering Services, and Aviation Support Systems and Related Businesses being the main components; an impairment provision of RMB 10.2416 million was made for contract assets during the period Contract Assets Composition and Impairment Provisions (As of June 30, 2025 vs December 31, 2024) | Item | June 30, 2025 Book Value (RMB) | December 31, 2024 Book Value (RMB) | | :--- | :--- | :--- | | Aviation Mainframes | 4,237,121,500 | 3,289,175,501 | | Aviation Engineering Services | 4,240,773,695 | 3,634,883,277 | | Aviation Support Systems and Related Businesses | 1,511,370,479 | 1,233,126,851 | | Total | 9,989,265,674 | 8,157,185,629 | | Total impairment provisions | 123,398,867 | 113,157,291 | - An impairment provision of **RMB 10,241,576** was made for contract assets during the period[122](index=122&type=chunk) - The change in the book value of contract assets was mainly due to contract performance[123](index=123&type=chunk) [Long-term Equity Investments](index=57&type=section&id=Long-term%20Equity%20Investments) As of June 30, 2025, the Group's total long-term equity investments amounted to RMB 2.890 billion, an increase from RMB 2.820 billion at the end of 2024, primarily comprising investments in joint ventures and associates, with investment income recognized under the equity method totaling RMB 134 million during the period Long-term Equity Investments Key Data (As of June 30, 2025 vs December 31, 2024) | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Joint ventures | 470,531,486 | 436,304,521 | | Associates | 2,064,900,000 | 2,028,668,297 | | Equity split share circulation rights | 354,739,885 | 354,739,885 | | Total | 2,890,168,349 | 2,819,712,703 | - Investment income recognized under the equity method during the period was **RMB 134,484,683**[124](index=124&type=chunk) [Other Equity Instrument Investments](index=58&type=section&id=Other%20Equity%20Instrument%20Investments) As of June 30, 2025, the Group's total other equity instrument investments amounted to RMB 4.652 billion, an increase from RMB 4.363 billion at the end of 2024, primarily comprising equity investments in AVIC Shenyang Aircraft, AVIC Chengdu Aircraft, Beijing AVIC Phase I Aviation Industry Investment Fund, and other companies Other Equity Instrument Investments Key Composition (As of June 30, 2025) | Item | Amount (RMB) | | :--- | :--- | | AVIC Shenyang Aircraft Corporation Limited | 1,373,308,443 | | AVIC Chengdu Aircraft Industrial (Group) Co., Ltd. | 619,412,777 | | Beijing AVIC Phase I Aviation Industry Investment Fund (Limited Partnership) | 559,610,760 | | AVIC Industrial Financial Holdings Co., Ltd. | 464,239,634 | | Harbin Dongan Engine Manufacturing Co., Ltd. | 425,400,000 | | AVIC Heavy Machinery Co., Ltd. | 277,045,718 | | Sichuan Chengfei Integration Technology Corp., Ltd. | 131,119,733 | | Other | 801,132,180 | | Total | 4,651,849,445 | - Dividend income recognized during the period was **RMB 19,306,501**[126](index=126&type=chunk) - Cumulative gains amounted to **RMB 2.436 billion**, and cumulative losses amounted to **RMB 237 million**[126](index=126&type=chunk) [Investment Properties](index=60&type=section&id=Investment%20Properties) As of June 30, 2025, the Group's investment properties measured using the cost model had a book value of RMB 447 million, a slight decrease from RMB 460 million at the end of 2024, with additions of RMB 8.5775 million and disposals of RMB 11.7177 million during the period Investment Properties Book Value (As of June 30, 2025 vs December 31, 2024) | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Buildings | 370,213,477 | 386,351,035 | | Land use rights | 76,986,708 | 73,342,487 | | Total | 447,200,185 | 459,693,522 | - The original cost of investment properties increased by **RMB 8,577,458** and decreased by **RMB 11,717,670** during the period[127](index=127&type=chunk) [Fixed Assets](index=60&type=section&id=Fixed%20Assets) As of June 30, 2025, the Group's fixed assets had a book value of RMB 25.429 billion, an increase from RMB 25.036 billion at the end of 2024, with buildings and machinery being the main components; the original cost of fixed assets increased by RMB 1.795 billion and decreased by RMB 208 million during the period Fixed Assets Book Value (As of June 30, 2025 vs December 31, 2024) | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Buildings | 14,330,205,455 | 13,810,458,022 | | Machinery and equipment | 8,659,848,336 | 8,684,422,176 | | Transportation vehicles | 67,813,978 | 71,778,016 | | Electronic equipment | 1,191,839,429 | 1,250,853,787 | | Office equipment | 57,915,746 | 67,351,361 | | Other | 1,121,709,631 | 1,151,061,661 | | Total | 25,429,332,575 | 25,035,925,023 | - The original cost of fixed assets increased by **RMB 1,795,325,128** and decreased by **RMB 207,526,965** during the period[129](index=129&type=chunk) - Accumulated depreciation increased by **RMB 1,350,247,701** during the period[129](index=129&type=chunk) [Construction in Progress](index=62&type=section&id=Construction%20in%20Progress) As of June 30, 2025, the Group's construction in progress had a book value of RMB 4.208 billion, a slight decrease from RMB 4.240 billion at the end of 2024; major projects include the high-end interconnection technology industrial community project, infrastructure renovation projects, and self-manufactured equipment; construction in progress increased by RMB 862 million and transferred to fixed assets by RMB 1.125 billion during the period Construction in Progress Book Value (As of June 30, 2025 vs December 31, 2024) | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Construction in progress | 4,208,403,816 | 4,240,450,534 | | Total | 4,208,403,816 | 4,240,450,534 | Major Construction in Progress Project Changes (H1 2025) | Project Name | December 31, 2024 (RMB) | Increase during the period (RMB) | Transferred to fixed assets (RMB) | June 30, 2025 (RMB) | | :--- | :--- | :--- | :--- | :--- | | High-end Interconnection Technology Industrial Community Project | 817,477,072 | 174,478,717 | 2,128,390 | 989,827,399 | | Infrastructure Renovation Project | 275,008,017 | 57,772,746 | 20,772,491 | 312,004,677 | | Self-manufactured Equipment | 199,711,213 | 147,718,082 | 82,790,180 | 264,639,115 | | Civil Aircraft and Industrial Interconnection Industrial Park | 557,531,314 | 247,590,857 | 770,791,054 | 34,331,117 | - Construction in progress increased by **RMB 861,816,452** and transferred to fixed assets by **RMB 1,124,990,593** during the period[134](index=134&type=chunk) [Right-of-Use Assets](index=65&type=section&id=Right-of-Use%20Assets) As of June 30, 2025, the Group's right-of-use assets had a book value of RMB 443 million, a decrease from RMB 478 million at the end of 2024, primarily comprising buildings and machinery and equipment Right-of-Use Assets Book Value (As of June 30, 2025 vs December 31, 2024) | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Buildings | 406,834,203 | 449,496,669 | | Machinery and equipment | 36,545,360 | 28,831,718 | | Total | 443,379,563 | 478,328,387 | - The original cost of right-of-use assets increased by **RMB 26,254,859** and decreased by **RMB 33,446,385** during the period[135](index=135&type=chunk) [Intangible Assets](index=66&type=section&id=Intangible%20Assets) As of June 30, 2025, the Group's intangible assets had a book value of RMB 3.932 billion, a slight decrease from RMB 4.020 billion at the end of 2024, primarily comprising land use rights, software, and non-patent technologies; the original cost of intangible assets increased by RMB 81.3114 million and decreased by RMB 8.8895 million during the period Intangible Assets Book Value (As of June 30, 2025 vs December 31, 2024) | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Software | 807,995,692 | 855,830,065 | | Land use rights | 3,007,561,902 | 3,033,612,276 | | Patent rights | 2,792,962 | 7,062,797 | | Non-patent technologies | 113,449,082 | 123,121,047 | | Customer resources, sales channels | 36,200 | 36,200 | | Total | 3,931,835,838 | 4,019,662,385 | - The original cost of intangible assets increased by **RMB 81,311,356** and decreased by **RMB 8,889,534** during the period[136](index=136&type=chunk) - The Group had no intangible assets formed through internal R&D at the end of the period[136](index=136&type=chunk) [Short-term Borrowings](index=66&type=section&id=Short-term%20Borrowings) As of June 30, 2025, the Group's total short-term borrowings amounted to RMB 11.982 billion, an increase from RMB 9.346 billion at the end of 2024, with credit borrowings accounting for the vast majority Short-term Borrowings Categories (As of June 30, 2025 vs December 31, 2024) | Borrowing Category | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Credit borrowings | 11,874,460,026 | 9,031,171,658 | | Pledged borrowings | 107,754,638 | 315,116,499 | | Total | 11,982,214,664 | 9,346,288,157 | [Notes Payable](index=67&type=section&id=Notes%20Payable) As of June 30, 2025, the Group's total notes payable amounted to RMB 10.979 billion, a decrease from RMB 12.623 billion at the end of 2024, with both bank acceptance bills and commercial acceptance bills showing a decline Notes Payable Types (As of June 30, 2025 vs December 31, 2024) | Note Type | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Bank acceptance bills | 6,763,460,671 | 7,622,243,602 | | Commercial acceptance bills | 4,215,576,894 | 5,001,034,545 | | Total | 10,979,037,565 | 12,623,278,147 | [Accounts Payable](index=67&type=section&id=Accounts%20Payable) As of June 30, 2025, the Group's total accounts payable amounted to RMB 50.389 billion, an increase from RMB 45.902 billion at the end of 2024, with payables for materials accounting for the highest proportion, and accounts payable within 1 year accounting for the vast majority Accounts Payable Composition (As of June 30, 2025 vs December 31, 2024) | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Payables for materials | 42,399,500,901 | 38,932,470,839 | | Payables for engineering | 5,417,182,653 | 3,976,416,871 | | Payables for equipment | 788,282,864 | 1,187,299,654 | | Other | 1,784,517,199 | 1,806,005,885 | | Total | 50,389,483,617 | 45,902,193,249 | Accounts Payable Age Distribution (As of June 30, 2025) | Age | Amount (RMB) | | :--- | :--- | | Within 1 year (inclusive) | 40,112,956,430 | | 1-2 years | 7,384,310,403 | | 2-3 years | 1,489,843,586 | | Over 3 years | 1,402,373,198 | | Total | 50,389,483,617 | [Contract Liabilities](index=68&type=section&id=Contract%20Liabilities) As of June 30, 2025, the Group's total contract liabilities amounted to RMB 11.556 billion, a decrease from RMB 15.778 billion at the end of 2024, with Aviation Support Systems and Related Businesses and Aviation Mainframes being the main components; the decrease in contract liabilities was primarily due to gradual order deliveries Contract Liabilities Composition (As of June 30, 2025 vs December 31, 2024) | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Aviation Mainframes | 4,053,698,521 | 6,063,237,084 | | Aviation Support Systems and Related Businesses | 5,651,413,992 | 7,679,145,649 | | Aviation Engineering Services | 1,851,037,463 | 2,035,384,286 | | Total | 11,556,149,976 | 15,777,767,019 | - The book value of contract liabilities decreased by **RMB 4,221,617,043** during the period, mainly due to gradual order deliveries[140](index=140&type=chunk) [Long-term Borrowings](index=68&type=section&id=Long-term%20Borrowings) As of June 30, 2025, the Group's total long-term borrowings amounted to RMB 4.182 billion, a decrease from RMB 5.164 billion at the end of 2024, primarily comprising credit borrowings, with interest rates ranging from 1.08% to 3.50% at period-end Long-term Borrowings Categories (As of June 30, 2025 vs December 31, 2024) | Borrowing Category | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Credit borrowings | 4,107,004,182 | 5,085,267,863 | | Guaranteed borrowings | 50,500,000 | 55,000,000 | | Mortgaged borrowings | 24,000,000 | 24,000,000 | | Total | 4,181,504,182 | 5,164,267,863 | - The interest rate range for the Group's long-term borrowings at period-end was **1.08% to 3.50%** (1.08% to 3.85% at the beginning of the year)[141](index=141&type=chunk) [Lease Liabilities](index=69&type=section&id=Lease%20Liabilities) As of June 30, 2025, the Group's total lease liabilities amounted to RMB 381 million, a slight decrease from RMB 401 million at the end of 2024, with lease payments totaling RMB 593 million Lease Liabilities (As of June 30, 2025 vs December 31, 2024) | Item | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Lease payments | 593,269,882 | 627,140,242 | | Less: Unrecognized finance costs | 115,400,525 | 123,610,612 | | Reclassified to non-current liabilities due within one year | 96,858,239 | 102,921,676 | | Total | 381,011,118 | 400,607,954 | [Share Capital](index=69&type=section&id=Share%20Capital) As of June 30, 2025, the company's total share capital was RMB 7.973 billion, consistent with the end of 2024, with no changes during the period Total Share Capital (As of June 30, 2025 vs December 31, 2024) | Item | December 31, 2024 (RMB) | Change during the period (+/-) | June 30, 2025 (RMB) | | :--- | :--- | :--- | :--- | | Total share capital | 7,972,854,242 | 0 | 7,972,854,242 | [Operating Revenue, Operating Costs](index=69&type=section&id=Operating%20Revenue,%20Operating%20Costs) The Group's operating revenue for the first half of 2025 was RMB 37.465 billion, and operating costs were RMB 29.889 billion; main business revenue accounted for the vast majority, increasing by 11.48% year-on-year Operating Revenue, Operating Costs (H1 2025 vs H1 2024) | Item | H1 2025 Revenue (RMB) | H1 2025 Costs (RMB) | H1 2024 Revenue (RMB) | H1 2024 Costs (RMB) | | :--- | :--- | :--- | :--- | :--- | | Main business | 36,826,838,364 | 29,376,744,360 | 33,035,071,261 | 25,144,142,211 | | Other business | 638,413,506 | 512,733,572 | 586,204,429 | 430,146,162 | | Total | 37,465,251,870 | 29,889,477,932 | 33,621,275,690 | 25,574,288,373 | - The revenue recognized by the Group in January-June 2025 includes **RMB 7,547,201,804** that was already included in contract liabilities at the beginning of the year[144](index=144&type=chunk) [Selling Expenses](index=70&type=section&id=Selling%20Expenses) The Group's selling expenses for the first half of 2025 were RMB 339 million, a year-on-year increase of 3.04%; staff remuneration expenses were the main component, increasing by 9.67% year-on-year Selling Expenses Composition (H1 2025 vs H1 2024) | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Staff remuneration expenses | 172,814,985 | 157,573,108 | | Travel expenses | 58,466,608 | 56,028,172 | | Advertising and exhibition expenses | 33,792,498 | 29,667,021 | | Sales service fees | 28,641,015 | 26,616,667 | | Other | 45,385,473 | 58,794,526 | | Total | 339,100,579 | 328,679,494 | [Administrative Expenses](index=71&type=section&id=Administrative%20Expenses) The Group's administrative expenses for the first half of 2025 were RMB 2.064 billion, a year-on-year decrease of 4.40%; staff remuneration expenses and depreciation and amortization expenses were the main components, with equity incentive amortization expenses for the current period significantly decreasing by 46.62% year-on-year Administrative Expenses Composition (H1 2025 vs H1 2024) | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Staff remuneration expenses | 1,252,186,093 | 1,185,191,826 | | Depreciation and amortization expenses | 296,382,483 | 284,950,026 | | Equity incentive amortization for the current period | 70,577,690 | 132,205,699 | | Other | 445,334,486 | 556,756,510 | | Total | 2,064,480,752 | 2,159,104,061 | [R&D Expenses](index=72&type=section&id=R%26D%20Expenses) The Group's R&D expenses for the first half of 2025 were RMB 2.170 billion, a year-on-year increase of 6.84%; staff remuneration expenses and material costs were the main components, with equity incentive amortization expenses for the current period decreasing by 50.39% year-on-year R&D Expenses Composition (H1 2025 vs H1 2024) | Item | H1 2025 (RMB) | H1 2024 (RMB) | | :--- | :--- | :--- | | Staff remuneration expenses | 859,178,231 | 828,486,723 | | Material costs | 594,603,039 | 542,454,369 | | Testing and special expenses | 302,118,533 | 214,719,103 | | Outsourcing fees | 108,480,786 | 126,394,091 | | Equity incentive amortization for the current period | 33,980,936 | 68,492,017 | | Other | 271,520,278 | 256,673,545 | | Total | 2,169,891,803 | 2,031,219,848 | [Finance Costs](index=72&type=section&id=Finance%20Costs) The Group's finance costs for the first half of 202

瑞安房地產成立於2004年，並於2006年在香港聯合交易所上市，是 中國領先的城市發展解決方案提供者，主要業務分布於全國多個核心 城市，專注於物業開發、物業投資及管理兩大核心業務板塊。作為開發 和運營卓越可持續社區的先鋒，公司充分發揮城市更新與商業創新的 優勢，將文化、社交和可持續理念融入城市發展血脈中，不斷激發城市 生命力，並憑借旗下著名品牌「新天地」和「翠湖天地」，實現人們對品 質生活的不斷追求和想象。 BUILDING A FUTURE SHARING A DREAM 新可能 新天地 INTERIM REPORT 2025 二零二五年度中期業績報告 SHUI ON LAND LIMITED 瑞安房地產有限公司 Incorporated in the Cayman islands with limited liability 於開曼群島註冊成立之有限責任公司 STOCK CODE 股份代號 272 CONTENTS 目錄 2 Chairman's Statement 主席報告 6 Management Discussion and Analysis 管理層討論與分析 29 Independent Revi ...

[Company Overview and Annual Results Announcement](index=1&type=section&id=Company%20Overview%20and%20Annual%20Results%20Announcement) Huayuan Tongchuang Technology Group Co., Ltd. (formerly Meiya Holdings Co., Ltd.) announced its consolidated annual results for the year ended June 30, 2025, which have been reviewed by the audit committee and include comparative figures for 2024 [Company Information and Announcement Statement](index=1&type=section&id=Company%20Information%20and%20Announcement%20Statement) The company, formerly Meiya Holdings Co., Ltd., released its consolidated annual results for the year ended June 30, 2025, with comparative figures for 2024, reviewed by the audit committee - Company Name: **Huayuan Tongchuang Technology Group Co., Ltd.** (formerly Meiya Holdings Co., Ltd.)[2](index=2&type=chunk) - Announcement Content: Consolidated annual results announcement for the year ended June 30, 2025, including 2024 comparative figures[2](index=2&type=chunk) - Review Status: Consolidated results have been reviewed by the company's audit committee[2](index=2&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) This section presents the Group's consolidated financial statements, including the statement of profit or loss, comprehensive income, and financial position [Consolidated Statement of Profit or Loss](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) For the year ended June 30, 2025, the company's revenue from continuing operations increased by 6.4%, but it recorded an operating loss, loss before tax, and loss for the year, contrasting with a profit in 2024 primarily from discontinued operations Consolidated Statement of Profit or Loss Key Data (Continuing Operations) | Metric | 2025 (thousand RMB) | 2024 (thousand RMB, restated and re-presented) | | :--- | :--- | :--- | | Revenue | 760,063 | 714,408 | | Cost of Sales | (677,461) | (627,021) | | Gross Profit | 82,602 | 87,387 | | Other Income | 14,933 | 20,036 | | Operating Loss | (48,457) | (7,807) | | Loss Before Tax | (58,295) | (11,468) | | Loss for the Year from Continuing Operations | (59,459) | (14,768) | | Profit for the Year from Discontinued Operations | – | 167,901 | | Loss/Profit for the Year | (59,459) | 153,133 | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the year ended June 30, 2025, the company reported a loss for the year and total comprehensive expense, a significant shift from the profit and comprehensive income recorded in 2024, with basic and diluted loss per share of **RMB 2.67 cents** Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data | Metric | 2025 (thousand RMB) | 2024 (thousand RMB, restated and re-presented) | | :--- | :--- | :--- | | Loss/Profit for the Year | (59,459) | 153,133 | | Other Comprehensive Income/(Expense), After Tax | 8,478 | (2,796) | | Total Comprehensive Expense/Income for the Year | (50,981) | 150,337 | | Loss/Profit for the Year Attributable to Owners of the Company | (57,683) | 153,272 | | Total Comprehensive Expense/Income Attributable to Owners of the Company | (49,205) | 150,476 | | Loss Per Share from Continuing Operations (RMB cents) - Basic and Diluted | (2.67) | (0.68) | [Consolidated Statement of Financial Position](index=5&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's net assets decreased, with an increase in property, plant and equipment, a decrease in trade and other receivables, a significant reduction in trade and other payables, and an increase in borrowings Consolidated Statement of Financial Position Key Data | Metric | June 30, 2025 (thousand RMB) | June 30, 2024 (thousand RMB, restated and re-presented) | | :--- | :--- | :--- | | Non-current Assets | 94,457 | 85,800 | | Current Assets | 441,592 | 482,759 | | Current Liabilities | 282,553 | 286,432 | | Net Current Assets | 159,039 | 196,327 | | Net Assets | 251,720 | 282,127 | | Equity Attributable to Owners of the Company | 193,401 | 215,522 | | Borrowings | 159,578 | 100,000 | | Trade and Other Receivables | 305,721 | 345,920 | | Trade and Other Payables | 114,023 | 171,170 | [Notes to the Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section provides detailed notes to the consolidated financial statements, covering general information, accounting policies, revenue, expenses, segment information, and other financial details [General Information](index=7&type=section&id=General%20Information) Huayuan Tongchuang Technology Group Co., Ltd., incorporated in the Cayman Islands with its principal business in Hong Kong, presents its consolidated financial statements in RMB and discontinued its urban renewal business in Zhuhai in 2024 - Company registration: **Cayman Islands**, principal place of business: **Hong Kong**[8](index=8&type=chunk) - Financial statements currency: **RMB**[9](index=9&type=chunk) - Discontinued operations: Urban renewal project planning and consulting business in Zhuhai, China, discontinued in **2024**[9](index=9&type=chunk) [Adoption of New and Revised Hong Kong Financial Reporting Standards](index=7&type=section&id=Adoption%20of%20New%20and%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) This year, the Group adopted several amendments to Hong Kong Financial Reporting Standards, which had no material impact on financial performance or position, while HKFRS 18, effective in 2027, is being assessed for presentation and disclosure impacts - This year, several amendments to Hong Kong Financial Reporting Standards were first applied, including **HKFRS 16 (Amendments)**, **HKAS 1 (Amendments)**, and **HKAS 7 and HKFRS 7 (Amendments)**[10](index=10&type=chunk)[11](index=11&type=chunk) - Applied amendments had no material impact on financial performance and position for the current and prior periods[11](index=11&type=chunk) - HKFRS 18 (Presentation and Disclosure in Financial Statements) will be effective from **January 1, 2027**, and is not expected to have a material impact on financial position, but its impact on presentation and disclosure is still being assessed[12](index=12&type=chunk)[13](index=13&type=chunk) [Revenue](index=9&type=section&id=Revenue) The Group's revenue primarily stems from steel products and piped drinking water solutions, with total revenue increasing by **6.4%** to **RMB 760,063 thousand** in 2025, driven mainly by domestic sales and growing direct exports Continuing Operations Revenue Analysis | Revenue Source | 2025 (thousand RMB) | 2024 (thousand RMB, restated and re-presented) | | :--- | :--- | :--- | | Production and Sale of Steel Products and Provision of Piped Drinking Water Solutions | 760,063 | 714,408 | | Indirect Export Sales | 18,264 | 29,932 | | Domestic Sales | 681,875 | 637,820 | | Direct Export Sales | 59,924 | 46,656 | | Total | 760,063 | 714,408 | - Revenue recognition point: Sales are recognized when control of the product is transferred (i.e., product is delivered to the customer)[16](index=16&type=chunk) - Customer credit period: Generally **60 to 180 days**, new customers may be required to pay a deposit or cash on delivery[16](index=16&type=chunk) [Other Income](index=10&type=section&id=Other%20Income) The Group's other income, comprising government grants, scrap sales, interest income, and miscellaneous income, decreased to **RMB 14,933 thousand** in 2025, mainly due to reductions in government grants and miscellaneous income Other Income Composition | Income Item | 2025 (thousand RMB) | 2024 (thousand RMB, restated and re-presented) | | :--- | :--- | :--- | | Interest Income | 975 | 626 | | Government Grants | 4,695 | 7,966 | | Scrap Sales | 7,663 | 8,018 | | Miscellaneous Income | 1,600 | 3,426 | | Total | 14,933 | 20,036 | - Government grants: Issued by local government authorities to support the Group's operations and encourage innovative production technologies, and the enjoyment of such grants is unconditional[17](index=17&type=chunk) [Segment Information](index=10&type=section&id=Segment%20Information) The

股 份 代 號 ： 184 激成投資 (香港)有限公司 2 0 2 5 中 期 報 告 2 0 2 5 中 期 報 告 2 0 2 5 中 期 報 告 INTERIM REPORT 2025 KECK SENG INVESTMENTS (HONG KONG) LIMITED Stock Code : 184 成 投 資 (香 港) 有 限 公 司 INTERIM REPORT INTERIM REPORT 2025 KECK SENG INVESTMENTS (HONG KONG) LIMITED 激 中 期報告 2025 激 成 投 資（香 港）有 限 公 司 公司資料 董 事 執行董事 何建源 – 執行主席 何建福 – 副執行主席 謝思訓 陳磊明 何崇暉 何崇敬 （何崇暉之替任董事） 非執行董事 何建昌 何崇杰 （何建昌之替任董事） 獨立非執行董事 郭志舜 王培芬 俞漢度 陳智文 審核及合規委員會 俞漢度 – 主 席 郭志舜 王培芬 陳智文 薪酬委員會 王培芬 – 主 席 郭志舜 俞漢度 陳智文 謝思訓 提名委員會 郭志舜 – 主 席 王培芬 俞漢度 陳智文 謝思訓 風險管理委員會 陳智文 – 主 席 王 ...

INTERIM REPORT 2025 中期報告 CONTENTS 目錄 | | Page | | 頁次 | | --- | --- | --- | --- | | Corporate Information | 1 | 公司資料 | 2 | | Interim Results | 3 | 中期業績 | 4 | | Interests and Short Positions in Securities | 21 | 證券之權益及淡倉 | 22 | | Corporate Governance and Other | 29 | 企業管治及其他資料 | 30 | | Information | | | | | Condensed Consolidated Statement of | 33 | 簡明綜合損益表 | 33 | | Profit or Loss | | | | | Condensed Consolidated Statement of | 34 | 簡明綜合損益及其他 | 34 | | Profit or Loss and | | 全面收益表 | | | Other Comprehensive Inc ...

| 公司簡介 | 2 | Company Profile | | --- | --- | --- | | 公司資料 | 4 | Corporate Information | | 主要房地產項目 | 6 | Major Property Projects | | 詞彙及定義 | 9 | Glossary and Definitions | | 主席報告 | 10 | Chairman's Statement | | 管理層討論及分析 | 16 | Management Discussion and Analysis | | 權益披露 | 31 | Disclosure of Interests | | 企業管治及其他資料 | 47 | Corporate Governance and Other Information | | 簡明綜合財務報表的審閱報告 | 54 | Report on Review of Condensed | | | | Consolidated Financial Statements | | 簡明綜合損益及其他全面收益表 | 56 | Condensed Consolidated S ...

Contents目錄 The English text of this interim report shall prevail over the Chinese text in case of inconsistencies or discrepancies. 本中期報告的中英文版本如有歧義或差異，應以英文版本為準。 02 Corporate Information 公司資料 04 Highlights 摘要 08 Business Review 業務回顧 19 Management Discussion and Analysis 管理層討論及分析 35 Report on Review of Interim Financial Information 中期財務資料的審閱報告 37 Condensed Consolidated Statement of Profit or Loss 簡明綜合損益表 38 Condensed Consolidated Statement of Comprehensive Income 簡明綜合全面收益表 39 Condensed Consolidated Statement ...

Management Discussion and Analysis This section provides an overview of the Group's operational performance, financial position, and future outlook, including key financial metrics and strategic initiatives. [Definitions and Major Risk Disclosures](index=4&type=section&id=Definitions%20and%20Major%20Risk%20Disclosures) This section defines key terms and outlines significant operational risks, including policy changes, economic volatility, and project execution challenges. - The reporting period (mid-2025) refers to the six months from January 1, 2025, to June 30, 2025[10](index=10&type=chunk) - The company faces major risks including potential adjustments to concession periods and fee rate controls from revisions to the "Toll Road Management Regulations," significant impact on the solid waste resource utilization industry from local subsidy policies and fiscal payment efficiency, and revenue uncertainty due to market-oriented reform of new energy on-grid tariffs[160](index=160&type=chunk) [Company Profile](index=13&type=section&id=Company%20Profile) Established in 1996, the company focuses on toll road and environmental protection businesses, managing 16 highway projects totaling 613 equity kilometers, with Shenzhen International as its indirect controlling shareholder. - The company primarily engages in the investment, construction, and operation management of toll roads and major environmental protection businesses, including solid waste resource utilization and clean energy power generation[22](index=22&type=chunk) - As of the end of the reporting period, the company operates and invests in a total of 16 highway projects, with an equity mileage of approximately **613 kilometers** for invested or operated expressways[22](index=22&type=chunk) Share Capital Structure | Share Type | Number of Shares | Proportion of Total Share Capital (%) | | :------- | :--------------- | :---------------------------------- | | A-shares | 1,790,356,127 | 70.55 | | H-shares | 747,500,000 | 29.45 | | **Total** | **2,537,856,127** | **100.00** | [Financial Highlights](index=15&type=section&id=Financial%20Highlights) Mid-2025 saw a 4.30% revenue increase to **3.919 billion yuan** and a 24.04% rise in net profit to **0.960 billion yuan**, driven by fair value gains and lower interest expenses. Key Accounting Data and Financial Indicators for Mid-2025 | Indicator Item | Mid-2025 (RMB Yuan) | Mid-2024 (RMB Yuan) | Change (%) | | :------------- | :------------------ | :------------------ | :--------- | | Operating Revenue | 3,918,555,340.74 | 3,756,892,301.30 | 4.30 | | Total Profit | 1,255,312,119.50 | 1,099,724,969.99 | 14.15 | | Net Profit Attributable to Shareholders of Listed Company | 959,891,990.84 | 773,857,169.47 | 24.04 | | Net Cash Flow from Operating Activities | 1,954,978,990.73 | 1,760,822,084.42 | 11.03 | | Basic Earnings Per Share (Yuan/share) | 0.382 | 0.312 | 22.44 | | Weighted Average Return on Net Assets (%) | 4.34 | 3.68 | Increased by 0.66 percentage points | Asset and Liability Data as of June 30, 2025 | Indicator Item | June 30, 2025 (RMB Yuan) | December 31, 2024 (RMB Yuan) | Change (%) | | :------------- | :----------------------- | :------------------------- | :--------- | | Net Assets Attributable to Shareholders of Listed Company | 26,916,838,311.98 | 21,903,521,723.27 | 22.89 | | Total Assets | 72,038,805,666.83 | 67,558,030,948.58 | 6.63 | - The company early redeemed 4 billion yuan of perpetual bonds issued in 2020 and issued 4 billion yuan of renewable corporate bonds, classified as other equity instruments, with their impact excluded when calculating earnings per share and weighted average return on net assets[27](index=27&type=chunk) [Company's Main Business and Industry Overview](index=20&type=section&id=Company's%20Main%20Business%20and%20Industry%20Overview) The Group focuses on its dual main businesses of "toll roads + major environmental protection," with toll roads being the primary source of revenue and profit, while major environmental protection includes solid waste resource utilization and clean energy power generation. In the first half of 2025, stable macroeconomic development supported demand for highway transportation and environmental protection services. The company actively advanced major highway projects and continued to expand its scale and operational capabilities in solid waste treatment and clean energy. - The Group primarily engages in the investment, construction, and operation management of toll roads and major environmental protection businesses, with the latter mainly comprising solid waste resource utilization and clean energy power generation[35](index=35&type=chunk) - As of the end of the reporting period, the Group's organic waste design treatment capacity exceeded **6,300 tons/day**, ranking among the top in the domestic industry; it owns **13 standard wind farms** with a cumulative installed wind power capacity of **668 MW**, and has invested in and indirectly participated in two distributed photovoltaic power generation projects[40](index=40&type=chunk)[42](index=42&type=chunk) - In the first half of 2025, China's national economy grew by **5.3% year-on-year**, and total foreign trade import and export value increased by **2.9% year-on-year**, indicating stable economic development favorable for highway transportation and environmental protection business demand[36](index=36&type=chunk) [Discussion and Analysis of Operating Performance](index=24&type=section&id=Discussion%20and%20Analysis%20of%20Operating%20Performance) In the first half of 2025, the Group's operating revenue reached **3.919 billion yuan**, a year-on-year increase of 4.30%. Toll road business benefited from network connectivity and increased vehicle ownership, leading to higher toll revenue; in major environmental protection, solid waste treatment improved profitability through optimized management and technical upgrades, while clean energy generation revenue decreased due to wind resources and curtailment rates. The Group continued to advance major engineering projects and expanded its entrusted management and land development businesses. Operating Revenue Composition for H1 2025 | Revenue Source | Amount (Billion Yuan) | Proportion of Total Revenue (%) | | :------------- | :-------------------- | :------------------------------ | | Toll Revenue | 2.449 | 62.51 | | Clean Energy and Solid Waste Resource Utilization and other Environmental Businesses Revenue | 0.750 | 19.14 | | Other Revenue | 0.719 | 18.35 | | **Total** | **3.919** | **100.00** | - In the toll road business, the Shenzhen area benefited from reduced rainfall during the flood season, increased motor vehicle ownership, and network synergy from the opening of the Shenzhen-Zhongshan Link and Yanjiang Phase II, with Yanjiang Expressway's average daily toll revenue increasing by over **20% year-on-year**[45](index=45&type=chunk)[46](index=46&type=chunk)[48](index=48&type=chunk) - For solid waste resource utilization, Lande Environmental improved profitability by optimizing collection and transportation management, strengthening slag resource sales, and implementing technical process upgrades; the Guangming Environmental Park project officially entered commercial operation in February 2025[57](index=57&type=chunk)[58](index=58&type=chunk) - In the clean energy business, Baotou Nanfeng Wind Power's on-grid electricity increased by approximately **17% year-on-year**, while Xinjiang Mulei's on-grid electricity and wind power generation revenue decreased year-on-year due to lower wind resources and increased curtailment rates compared to the same period[63](index=63&type=chunk) - The Group is actively advancing major engineering projects such as the Jihe Expressway expansion, Outer Ring Phase III, and Guangzhou-Shenzhen section expansion of Beijing-Hong Kong-Macau Expressway; Outer Ring Phase III has completed approximately **20.2%** of its physical progress, and the Jihe Expressway expansion project's main structure has completed approximately **12.1%** of its physical progress[50](index=50&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk) [Core Competitiveness Analysis](index=32&type=section&id=Core%20Competitiveness%20Analysis) The Group's core competitiveness stems from its state-owned platform advantage in the Greater Bay Area, integrated management capabilities, continuous innovation, and robust dual-listing capital market financing platform, supporting its development and transformation in transportation infrastructure and environmental protection. - As a Shenzhen state-owned controlled platform for investment, construction, management, and maintenance of highways and major environmental protection infrastructure, the company enjoys a favorable geographical advantage in the Greater Bay Area and actively seizes "dual-zone" construction opportunities to expand quality projects[74](index=74&type=chunk) - The company has accumulated extensive experience in the investment, construction, and operation management of large-scale infrastructure projects, forming integrated management capabilities from investment and construction to operation and maintenance, which are also applied in solid waste resource utilization and clean energy power generation[75](index=75&type=chunk) - The company emphasizes innovation, applying new technologies, materials, processes, and models in key construction projects, and actively promotes research and application of intelligent transportation/environmental protection, having successfully developed a road network monitoring and command dispatch system[75](index=75&type=chunk) - Listed on both Shanghai and Hong Kong stock exchanges, the company possesses a strong platform for dual-listing capital market financing and maintains high domestic and international credit ratings, ensuring smooth financing channels[76](index=76&type=chunk) [2025 "Quality Improvement, Efficiency Enhancement, and Return Focus" Action Plan Half-Year Assessment Report](index=36&type=section&id=2025%20"Quality%20Improvement,%20Efficiency%20Enhancement,%20and%20Return%20Focus"%20Action%20Plan%20Half-Year%20Assessment%20Report) In the first half of 2025, the Group actively implemented its "Quality Improvement, Efficiency Enhancement, and Return Focus" action plan, achieving operating revenue of **3.919 billion yuan** and net profit attributable to parent company shareholders of **0.960 billion yuan**, representing year-on-year increases of 4.30% and 24.04% respectively. The company made progress in main business development, technological empowerment, shareholder returns, and corporate governance, including advancing major engineering projects, optimizing environmental protection businesses, consistently distributing cash dividends, strengthening information disclosure, and improving corporate governance structure. H1 2025 Operating Performance | Indicator | Amount (Billion Yuan) | Year-on-Year Growth Rate (%) | | :-------- | :-------------------- | :--------------------------- | | Operating Revenue | 3.919 | 4.30 | | Net Profit Attributable to Parent Company Owners | 0.960 | 24.04 | - In the toll road business segment, the Group fully advanced major engineering projects such as the Jihe Expressway expansion, Outer Ring Phase III, and Guangzhou-Shenzhen section expansion of Beijing-Hong Kong-Macau Expressway, applying BIM construction management platforms to enhance construction management quality and efficiency[78](index=78&type=chunk)[79](index=79&type=chunk) - In the major environmental protection business segment, the Group focused on operational businesses, exited loss-making EPC engineering and equipment manufacturing businesses, and improved Lande Environmental's profitability through technical process upgrades and cost control measures[80](index=80&type=chunk) - The company has continuously distributed cash dividends for **28 consecutive years** since its listing, with a cash dividend payout ratio of no less than **55%** for 2024, accumulating approximately **15.056 billion yuan** in cash dividends[83](index=83&type=chunk) - The company continuously strengthened investor communication through regular report performance briefings, analyst conferences, on-site roadshows, and other activities, while strictly adhering to information disclosure obligations[84](index=84&type=chunk) [Financial Analysis](index=40&type=section&id=Financial%20Analysis) In the first half of 2025, the Group's net profit attributable to parent company shareholders increased by 24.04% to **0.960 billion yuan**, primarily due to increased fair value changes in equity investments in associates and reduced interest expenses. Operating revenue grew by 4.30%, mainly driven by increased construction service revenue under concession arrangements. Financial expenses decreased by 30.26% year-on-year, primarily due to lower financing interest rates. Net cash outflow from investing activities significantly increased, mainly due to increased net structured deposits and payments for major engineering projects. The Group's capital structure remained sound, and its solvency improved compared to the previous year. - In the first half of 2025, the Group achieved a net profit attributable to parent company shareholders of **959.892 million yuan**, a year-on-year increase of **24.04%**, mainly due to increased fair value changes in equity investments in associates and reduced interest expenses[87](index=87&type=chunk) Key Financial Item Changes for H1 2025 | Item | Current Period (Thousand Yuan) | Prior Period (Thousand Yuan) | Change (%) | | :--- | :----------------------------- | :--------------------------- | :--------- | | Operating Revenue | 3,918,555 | 3,756,892 | 4.30 | | Operating Cost | 2,470,334 | 2,315,667 | 6.68 | | Financial Expenses | 389,906 | 559,049 | -30.26 | | Investment Income | 411,862 | 579,660 | -28.95 | | Net Cash Flow from Operating Activities | 1,954,979 | 1,760,822 | 11.03 | | Net Cash Flow from Investing Activities | -4,600,360 | 365,153 | N/A | | Net Cash Flow from Financing Activities | 4,391,205 | -1,878,358 | N/A | - The increase in operating revenue was mainly due to a year-on-year increase in construction service revenue under concession arrangements; the increase in operating cost was mainly due to a year-on-year increase in construction service costs under concession arrangements[90](index=90&type=chunk)[91](index=91&type=chunk) - The decrease in financial expenses was mainly due to a year-on-year reduction in interest expenses from lower financing interest rates and a slight appreciation of the RMB, leading to increased exchange gains[94](index=94&type=chunk)[110](index=110&type=chunk) - Net cash flow from investing activities was an outflow of **4.600 billion yuan**, mainly due to an increase in net structured deposits, increased payments for Outer Ring Phase III and Jihe Expressway expansion projects, and the receipt of equity disposal proceeds from Yichang Company in the prior period[97](index=97&type=chunk)[118](index=118&type=chunk) Solvency Indicators as of June 30, 2025 | Key Indicator | Current Period End | Prior Year End | | :------------ | :----------------- | :------------- | | Asset-Liability Ratio (%) | 55.27 | 59.74 | | Net Debt-to-Equity Ratio (%) | 86.67 | 108.03 | | Interest Coverage Ratio | 3.95 | 2.93 | [Main Business Analysis](index=40&type=section&id=Main%20Business%20Analysis) This section details the reasons for changes in the Group's operating revenue and costs, with toll road revenue growing by 4.31% on a comparable basis, driven by the Shenzhen-Zhongshan Link and Yanjiang Phase II. Clean energy generation revenue slightly decreased, while kitchen waste treatment revenue significantly increased due to the official operation of the Guangming Environmental Park project. Gross profit margins and investment income for each business segment are also explained. - Toll road revenue increased by **0.64% year-on-year**; excluding the impact of Yichang Company no longer being consolidated, the Group's toll revenue on a comparable basis increased by **4.31% year-on-year**, mainly driven by increased toll revenue from Yanjiang Expressway and Jihe Expressway due to the opening of the Shenzhen-Zhongshan Link and Yanjiang Phase II[100](index=100&type=chunk) - Kitchen waste treatment revenue increased by **26.24%** in the current period, mainly due to the official operation of the Guangming Environmental Park project in February 2025, contributing incremental revenue[100](index=100&type=chunk) - Clean energy power generation business revenue decreased by **4.19%**, mainly due to reduced generation revenue from some wind power projects affected by increased curtailment rates and decreased wind resources[100](index=100&type=chunk) - The Group's subsidiary toll road gross profit margin was **49.31% overall**, a year-on-year decrease of **1.15 percentage points**, mainly due to changes in unit amortization for Qinglian Expressway and increased maintenance costs and depreciation/amortization expenses following the completion and opening of Yanjiang Phase II[103](index=103&type=chunk) - Investment income decreased by **28.95% year-on-year**, primarily due to the recognition of equity disposal gains from Yichang Company in the same period last year and the provision for inventory impairment by United Land in the current period[116](index=116&type=chunk) [Analysis of Assets and Liabilities](index=49&type=section&id=Analysis%20of%20Assets%20and%20Liabilities) As of June 30, 2025, the Group's total assets increased by 6.63% from the end of 2024 to **72.039 billion yuan**, primarily due to A-share equity fundraising. Total interest-bearing debt slightly increased by 0.90%. At the end of the reporting period, the Group's main restricted assets included pledged toll rights, equity pledges, and electricity fee collection right pledges, with total guaranteed loan balances of approximately **6.148 billion yuan**. - As of June 30, 2025, the Group's total assets were **72,038,806 thousand yuan**, an increase of **6.63%** compared to the end of 2024, mainly due to funds raised from the issuance of A-shares to specific investors in the current period[121](index=121&type=chunk) - The Group's total interest-bearing debt was **32,344,279 thousand yuan**, a year-on-year increase of approximately **0.90%**[121](index=121&type=chunk) Main Restricted Assets as of June 30, 2025 | Asset Category | Restriction Status | Guaranteed Loan Balance (Billion Yuan) | | :------------- | :----------------- | :----------------------------------- | | Qinglian Expressway Toll Rights | Pledged | 2.063 | | Yanjiang Expressway Toll Rights | Pledged | 0.029 | | Shuiguan Expressway Toll Rights | Pledged | 0.115 | | Equity, concession rights, accounts receivable, and production equipment of multiple Lande Environmental subsidiaries | Pledged, Mortgaged | 0.825 | | 100% equity of Qianzhi, Qianhui, Qianxin Companies | Pledged | 0.191 | | Accounts receivable under concession rights of Guangming Environmental, Lisai Environmental, and Shaoyang projects | Pledged | 0.625 | | Yongcheng Zuneng Project Electricity Fee Collection Rights | Pledged | 0.148 | | Mulei Project Electricity Fee Collection Rights | Pledged | 1.269 | | Electricity revenue rights of Lingxiang, Baotou Ningyuan, Baotou Ningxiang, Baotou Ningfeng, Baotou Nanchuan projects | Pledged | 0.884 | | **Total** | | **6.149** | [Analysis of Investment Status](index=54&type=section&id=Analysis%20of%20Investment%20Status) During the reporting period, the Group's major non-equity investment expenditures amounted to approximately **2.1 billion yuan**, primarily for the construction of Jihe Expressway expansion, Outer Ring Expressway, and Lande Environmental kitchen waste projects. The Group met its investment needs through a combination of self-owned funds, equity financing, and debt financing. Financial assets measured at fair value totaled **3.951 billion yuan** at period-end, mainly comprising structured deposits and equity holdings in Shenzhen Water Planning & Design Institute. - During the reporting period, the Group's major non-equity investment expenditures totaled approximately **2.1 billion yuan**, mainly for the construction of Jihe Expressway expansion, Outer Ring Expressway, multiple Lande Environmental kitchen waste projects, and Yanjiang Phase II[146](index=146&type=chunk) Major Non-Equity Investment Projects for H1 2025 | Project Name | Project Progress | Amount Invested in Current Period (Thousand Yuan) | Cumulative Amount Invested (Thousand Yuan) | | :----------- | :--------------- | :-------------------------------- | :------------------------- | | Outer Ring Project (Phase I, II, and III) | 71.2% | 831,179 | 7,919,749 | | Yanjiang Phase II | 99.9% | 5,795 | 991,398 | | Jihe Expressway Expansion | 12.1% | 1,027,754 | 3,052,520 | | Multiple Lande Environmental Kitchen Waste Projects | – | 50,534 | 1,688,547 | | Guangming Environmental Park PPP Project | 99.9% | 53,084 | 730,588 | | **Total** | – | **1,968,345** | **14,382,803** | Financial Assets Measured at Fair Value as of June 30, 2025 | Asset Category | Period-End Balance (Thousand Yuan) | | :------------- | :------------------------------- | | Trading Financial Assets | 2,934,092 | | Other Non-Current Financial Assets | 1,016,752 | | **Total** | **3,950,845** | [Analysis of Major Holding and Associate Companies](index=56&type=section&id=Analysis%20of%20Major%20Holding%20and%20Associate%20Companies) This section lists the financial performance and business overview of the Group's major holding and associate companies, including Outer Ring Company, Qinglian Company, Bay Area Development, and Derun Environment. These companies cover highway operations, environmental protection, new energy, and investment, collectively forming the Group's business landscape. Financial Overview of Major Holding and Associate Companies as of June 30, 2025 | Company Name | Group's Equity Interest (%) | Total Assets (Thousand Yuan) | Net Assets (Thousand Yuan) | Operating Revenue (Thousand Yuan) | Net Profit (Thousand Yuan) | | :----------- | :-------------------------- | :--------------------------- | :------------------------- | :-------------------------------- | :------------------------- | | Outer Ring Company | 100 | 9,845,768 | 8,064,430 | 757,025 | 347,066 | | Qinglian Company | 76.37 | 5,363,702 | 2,968,693 | 331,927 | 24,562 | | Bay Area Development | 71.83 | 17,038,414 | 4,124,263 | 371,759 | 57,177 | | Derun Environment | 20 | 66,613,282 | 18,674,620 | 6,440,040 | 438,464 | | New Energy Company | 100 | 5,849,777 | 3,154,233 | 279,158 | 74,924 | - During the reporting period, the Group's consolidation scope changed, with Harbin Nengchuang Fenglian New Energy Co., Ltd. and Shangzhi Nanfeng New Energy Co., Ltd. having been deregistered[153](index=153&type=chunk)[702](index=702&type=chunk) [Outlook and Plans](index=57&type=section&id=Outlook%20and%20Plans) 2025 marks the Group's "14th Five-Year Plan" conclusion and "15th Five-Year Plan" strategic layout year. In the second half, the Group will focus on major engineering construction, entrusted operation management, and intelligent development of its toll road business, while exploring upstream and downstream industrial chain businesses and land development along its routes. The major environmental protection business will prioritize quality improvement, efficiency enhancement, and business integration, focusing on acquiring high-quality wind and solar power resources, and expanding into energy storage and retired battery resources. In financial management, the Group will advance digital transformation, optimize financial structure, and strengthen corporate governance and investor relations management. - In the second half of 2025, the Group will fully promote the construction of the Jihe Expressway expansion and Outer Ring Phase III projects, actively explore entrusted operation management businesses, and strengthen the application of digital technology in construction, toll management, and road operation and maintenance[158](index=158&type=chunk) - The major environmental protection business will prioritize quality improvement and business integration for existing projects, focus on acquiring high-quality wind and photovoltaic power resources, and explore clean energy project development combined with highway toll stations and industrial parks[159](index=159&type=chunk) - In financial management, the Group will accelerate the promotion of financial digitalization, build an integrated financial data platform, and adjust funding strategies based on policy and market changes to optimize financial structure and reduce financial costs[159](index=159&type=chunk) - The company will implement revisions to its articles of association, supervisory board reform, and improvement of the board of directors' authorization system, adhere to high-quality information disclosure, strengthen investor relations management, and earnestly fulfill its social responsibilities[159](index=159&type=chunk) Board of Directors' Report This section provides an overview of the company's corporate governance, financing activities, major investments, and other significant matters during the reporting period. [Overview of Shareholders' Meetings](index=59&type=section&id=Overview%20of%20Shareholders'%20Meetings) In the first half of 2025, the company held two shareholders' meetings: the first extraordinary general meeting of 2025 and the 2024 annual general meeting, with resolutions disclosed as required. Shareholders' Meetings in H1 2025 | Meeting Session | Date of Meeting | Disclosure Date of Resolutions Publication | | :-------------- | :-------------- | :--------------------------------------- | | First Extraordinary General Meeting of 2025 | January 9, 2025 | January 10, 2025 | | 2024 Annual General Meeting | June 30, 2025 | July 1, 2025 | [Major Financing Matters](index=59&type=section&id=Major%20Financing%20Matters) During the reporting period, the company completed a private placement of A-shares, raising net proceeds of approximately **4.679 billion yuan** for investment in the Outer Ring project and repayment of interest-bearing debt. Additionally, the company issued medium-term notes, corporate bonds, and renewable corporate bonds totaling approximately **8.3 billion yuan** to optimize its debt structure and supplement working capital. - The company completed a private placement of **357,085,801 A-shares** in March 2025, raising net proceeds of **4,679,236,514.71 yuan** for investment in the Outer Ring project and repayment of interest-bearing debt[162](index=162&type=chunk) - Following this issuance, the company's total share capital increased from **2,180,770,326 shares** to **2,537,856,127 shares**, with A-shares accounting for **70.55%** and H-shares for **29.45%**[163](index=163&type=chunk) - In January 2025, the company issued two tranches of medium-term notes totaling **1.5 billion yuan**, both with a 3-year term and a coupon rate of **1.7%**[164](index=164&type=chunk) - In March 2025, the company issued **2.3 billion yuan** in corporate bonds with a 5-year term and a coupon rate of **2.29%**; in April and May 2025, it issued two tranches of renewable corporate bonds totaling **4 billion yuan**, with terms of 3 or 5 years and coupon rates ranging from **2.05% to 2.20%**[165](index=165&type=chunk) [Non-Operating Fund Occupation by Controlling Shareholder and Other Related Parties](index=60&type=section&id=Non-Operating%20Fund%20Occupation%20by%20Controlling%20Shareholder%20and%20Other%20Related%20Parties%EF%BC%88as%20defined%20by%20relevant%20Chinese%20regulatory%20provisions%EF%BC%89) As of the reporting date, there was no non-operating fund occupation by the controlling shareholder or other related parties of the company. - As of the reporting date, there was no non-operating fund occupation by the controlling shareholder or other related parties of the company[167](index=167&type=chunk) [Major Investment and Transaction Matters](index=60&type=section&id=Major%20Investment%20and%20Transaction%20Matters) In January 2025, the board of directors approved a **3.285 billion yuan** capital increase by the company's subsidiary to the joint venture Guang-Shen-Zhu Company, for the expansion project of the Guangzhou-Dongguan section of Beijing-Hong Kong-Macau Expressway and the Guangzhou-Huocun section of Guangzhou-Foshan Expressway. - On January 23, 2025, the board of directors approved the company's subsidiary, Shenzhen Investment Holdings Bay Area Development Co., Ltd., to subscribe and contribute **3.285 billion yuan** to the registered capital of Guang-Shen-Zhu Company, a joint venture in which it indirectly holds a **45%** profit distribution interest, in proportion to its equity[168](index=168&type=chunk) - These capital contributions will be used for the expansion project of the Guangzhou-Dongguan section of Beijing-Hong Kong-Macau Expressway and the Guangzhou-Huocun section of Guangzhou-Foshan Expressway held by Guang-Shen-Zhu Company[168](index=168&type=chunk) [External Guarantees](index=61&type=section&id=External%20Guarantees) As of the end of the reporting period, the company's total external guarantees amounted to **4.681 billion yuan**, representing **17.39%** of its net assets. Guarantees for subsidiaries totaled **4.357 billion yuan**. The company's external guarantees primarily include phased joint liability guarantees for mortgage loans to customers of Guizhou Zhidi and joint liability guarantees for subsidiaries. Company's External Guarantees (Excluding Guarantees for Subsidiaries) | Guaranteed Party | Guarantor | Amount (Million Yuan) | Guarantee Type | Completed | Overdue | Counter-Guarantee | Related Party Guarantee | | :--------------- | :-------- | :-------------------- | :------------- | :-------- | :------ | :---------------- | :---------------------- | | Customers of Shengaosu·Interlaken Town | Guizhou Zhidi | 323.86 | Joint Liability | No | No | No | No | Company's Guarantees for Subsidiaries | Guarantor | Guaranteed Party | Maximum Amount (Million Yuan) | Actual Guaranteed Debt Principal Balance (Million Yuan) | Guarantee Type | | :-------- | :--------------- | :---------------------------- | :---------------------------------------------------- | :------------- | | Lande Environmental | Fuzhou Lande, etc. | 1,292.03 | 797.46 | Joint Liability | | Investment Company | Shengao Lekang | 36.26 | 23.67 | Joint Liability | | Bay Area Development | Shenwan Infrastructure | 1,798 | 1,500 | Joint Liability | | Bay Area Development | Shenzhen Investment Holdings Bay Area Financing Co., Ltd. | 1,094.34 | 446.86 | Joint Liability | | Bay Area Development | Shenzhen Investment Holdings Bay Area Financing Co., Ltd. | 2,000 | 565.41 | Joint Liability | | Lande Environmental | Multiple project subsidiaries invested by Lande before acquisition by the company | 11.25 | 11.25 | Joint Liability | | Bay Area Development | Shenzhen Investment Holdings Bay Area Financing Co., Ltd. | 1,941.76 | 1,012.26 | Joint Liability | - The company's total guarantees (including those for subsidiaries) amounted to **4,680.74 million yuan**, representing **17.39%** of the company's net assets[170](index=170&type=chunk) [Entrusted Wealth Management](index=64&type=section&id=Entrusted%20Wealth%20Management) During the reporting period, the Group initiated seven principal-protected floating-rate wealth management product transactions and one large-denomination certificate of deposit transaction, with entrusted wealth management amounting to **2.98 billion yuan**. As of the end of the reporting period, the balance of wealth management product funds was **3.24 billion yuan**, with no overdue principal or returns. - During the current reporting period, the Group initiated **7 principal-protected floating-rate wealth management product transactions** and **1 large-denomination certificate of deposit transaction**, with entrusted wealth management amounting to **2.98 billion yuan**[178](index=178&type=chunk) - As of the end of the current reporting period, the Group's wealth management product fund balance was **3.24 billion yuan**, no entrusted wealth management income was received in the current period, and there was no overdue principal or returns[178](index=178&type=chunk) [Explanation of Progress in Use of Raised Funds](index=64&type=section&id=Explanation%20of%20Progress%20in%20Use%20of%20Raised%20Funds) The company raised net proceeds of **4.679 billion yuan** from a private placement of shares, with cumulative investment of **1.191 billion yuan** as of the end of the reporting period, representing an investment progress of **25.46%**. The raised funds were primarily used for the construction of the Shenzhen Outer Ring Expressway project and repayment of interest-bearing debt. The company has used part of the raised funds to replace self-raised funds previously invested in the projects and for paid issuance expenses, and has managed idle raised funds through cash management. Overall Use of Raised Funds | Source of Raised Funds | Total Raised Funds (Ten Thousand Yuan) | Net Raised Funds (Ten Thousand Yuan) | Committed Investment of Raised Funds (Ten Thousand Yuan) | Cumulative Investment of Raised Funds as of Reporting Period End (Ten Thousand Yuan) | Cumulative Investment Progress of Raised Funds as of Reporting Period End (%) | | :------------------- | :----------------------------------- | :----------------------------------- | :--------------------------------------- | :----------------------------------------------------------- | :----------------------------------------------------------- | | Private Placement of Shares | 470,282.00 | 467,923.65 | 470,282.00 | 119,147.86 | 25.46 | - The raised funds were primarily used for investment in the Shenzhen section of the Shenzhen Outer Ring Expressway project (planned investment of **4.577 billion yuan**, **1.089 billion yuan** invested this year) and repayment of interest-bearing debt (planned investment of **0.102 billion yuan**, **0.102 billion yuan** invested this year)[181](index=181&type=chunk) - The company has used part of the raised funds to replace self-raised funds previously invested in the projects and for paid issuance expenses, totaling **1,263,576,794.87 yuan**[182](index=182&type=chunk) - The company managed idle raised funds by purchasing highly secure and liquid cash management products; as of the end of the reporting period, **5 cash management products** with a total amount of **2.18 billion yuan** remained outstanding[185](index=185&type=chunk) [Other Contracts and Matters](index=66&type=section&id=Other%20Contracts%20and%20Matters) During the reporting period, the company had no significant entrustment, contracting, leasing, or guarantee contracts, nor did it undergo bankruptcy reorganization or implement equity incentive plans. The Group is involved in multiple unresolved litigation and arbitration cases, primarily concerning contract disputes, performance compensation, and equity transfers, some of which are in first or second instance appeals, but are not expected to have a material impact on daily operations. - During the reporting period, the company did not enter into or have any contracts for the management or administration of its overall business or any significant business, nor did it sign other major entrustment, contracting, leasing, or guarantee contracts, nor were there any such major contracts from previous periods continuing into the reporting period[186](index=186&type=chunk) - The Group is involved in multiple litigation and arbitration matters, which are not expected to have a material impact on the Group's daily operations[186](index=186&type=chunk) Major Unresolved Litigation and Arbitration Matters | Plaintiff (Applicant) | Defendant (Respondent) | Type of Litigation (Arbitration) | Amount Involved (Thousand Yuan) | Progress Status | | :------------------- | :--------------------- | :------------------------------- | :------------------------------ | :-------------- | | Xincheng Environmental Technology (Lianyungang) Co., Ltd. | Nanjing Wind Power | Contract Dispute | 150,743.2 | Second instance judgment, in execution | | Environmental Company | Shi Junying, Shi Junhua, Zhengzhou Cida Environmental Protection Technology Co., Ltd., Beijing Shuiqi Lande Technology Co., Ltd. | Arbitration (failure to achieve promised performance, demanding performance compensation from respondents) | 344,334.1 | In arbitration | | China Power Construction Group Jiangxi Electric Power Construction Co., Ltd. | Nanjing Wind Power | Contract Dispute | 163,974.9 | Second instance appeal in progress | | Beijing Shuiqi Lande Technology Co., Ltd., Shi Junying, Shi Junhua, Zhengzhou Cida Environmental Protection Technology Co., Ltd. | Environmental Company | Arbitration (equity transfer dispute) | 129,727.2 | In arbitration | | Financial Leasing Company | Xuchang Xuirui Wind Power Co., Ltd., etc. | Arbitration (contract dispute) | 129,931.9 | Arbitration concluded, in execution | | Nanjing Wind Power | Lianyungang Zhongfu Lianzhong Composite Materials Group Co., Ltd. | Litigation (contract dispute) | 124,923.5 | First instance in progress | | Nanjing Wind Power | Huaian Zhongheng New Energy Co., Ltd. | Litigation (debt dispute) | 106,000.2 | First instance in progress | | Nanjing Wind Power | Shenzhen Zhongzhuang New Energy Technology Co., Ltd. | Litigation (contract dispute) | 62,521.5 | First instance judgment, effective | | Infrastructure Environmental Protection Company | Shenzhen Qiantai Energy Regeneration Technology Co., Ltd. | Litigation (equity transfer dispute) | – | First instance in progress | | China Railway Construction Southern Investment Company | Fund Company | Arbitration (partnership agreement dispute) | 152,590.3 | In arbitration | | Juye Changguang Wind Energy Co., Ltd. | Nanjing Wind Power, Environmental Company | Litigation (contract dispute) | 96,140 | First instance in progress | | China Power Construction Group Jiangxi Electric Power Design Institute Co., Ltd. | Zhangshu Gaochuan, Nanjing Wind Power | Litigation (contract dispute) | 16,098.6 | Second instance appeal in progress | | Huaian Zhongheng New Energy Co., Ltd. | Nanjing Wind Power | Litigation (contract dispute) | 124,244.8 | First instance in progress | | Nanjing Wind Power | China Power Construction Group Jiangxi Electric Power Construction Co., Ltd. | Arbitration (contract dispute) | 43,094 | First instance in progress | [Commitments](index=70&type=section&id=Commitments) The company's controlling shareholder, Shenzhen International, and ultimate controlling party, Shenzhen Investment Holdings, have made various commitments regarding avoiding horizontal competition, regulating related party transactions, and designating the company as the sole platform for highway business integration. Additionally, in connection with the A-share issuance, Xintongchan Company, Shenguanghui Company, Jintai Company, and the company's directors and senior management have made commitments related to share lock-up and measures to fill immediate returns. - Shenzhen International and Shenzhen Investment Holdings committed to designating the company as their sole platform for the ultimate integration of highway businesses and to avoid horizontal competition with the company's main businesses[191](index=191&type=chunk)[192](index=192&type=chunk) - Xintongchan Company, Shenguanghui Company, and Jintai Company made share lock-up commitments for this A-share issuance, where shares subscribed by Xintongchan will not be transferable for **18 months** from the issuance completion date, and shares subscribed by other investors will not be transferable for **6 months** from the issuance completion date[193](index=193&type=chunk) - The company's directors and senior management committed not to transfer benefits to other entities or individuals without compensation or under unfair conditions, not to use company assets for investment or consumption activities unrelated to their duties, and to support the alignment of the remuneration system with the implementation of the company's measures to fill immediate returns dilution[194](index=194&type=chunk) [Corporate Governance Status](index=74&type=section&id=Corporate%20Governance%20Status) The company is dual-listed on the Shanghai Stock Exchange and the Hong Kong Stock Exchange, complying with laws and regulatory requirements of both jurisdictions, and has fully adopted the code provisions of the HKEX Corporate Governance Code, striving for better corporate governance practices. - The company is dual-listed on the Shanghai Stock Exchange and the Hong Kong Stock Exchange, complying with applicable laws and securities regulatory requirements of both jurisdictions, and has fully adopted the code provisions of the Corporate Governance Code contained in Appendix C1 of the HKEX Listing Rules, with no material deviations or violations[195](index=195&type=chunk) [Investor Relations Management](index=74&type=section&id=Investor%20Relations%20Management) The company's management values investor communication, conducting investor relations activities through various channels, including hotlines, email, website messages, on-site visits, performance briefings, online conferences, and roadshows, continuously conveying company value and gathering investor feedback. - The company responds promptly to investor inquiries through its investor hotline, email, and website investor message board, having responded approximately **40 times** in the first half of 2025[197](index=197&type=chunk) - The company hosted **11 batches of investor visits** involving over **20 people**, and communicated with approximately **400 investors**, brokers, analysts, and media reporters through performance briefings, online conferences, and roadshows[197](index=197&type=chunk) [Employees, Remuneration, and Training](index=74&type=section&id=Employees,%20Remuneration,%20and%20Training) As of June 30, 2025, the Group had **7,080 employees**. The company provides position-based salaries, performance-based remuneration, and statutory benefits, and emphasizes employee training, having established a training system based on job competency. During the reporting period, **281 online and offline training sessions** were conducted, with approximately **10,174 person-times** participating. - As of June 30, 2025, the Group had a total of **7,080 employees**, including **1,882 management and professional personnel** and **5,198 toll collection and other frontline operational personnel**[196](index=196&type=chunk) - Employee remuneration and benefits include position-based salaries, performance-based remuneration, and statutory and company benefits, with participation in employee retirement benefit plans (social old-age insurance) and housing provident fund plans[198](index=198&type=chunk) - During the reporting period, the Group implemented **281 online and offline training sessions**, with approximately **10,174 person-times** participating, covering legal regulations, risk management, engineering safety management, and comprehensive professional qualities[198](index=198&type=chunk) [Interim Results Review](index=75&type=section&id=Interim%20Results%20Review) The Group's financial statements and half-year report for the six months ended June 30, 2025, have been reviewed and confirmed by the company's audit committee but remain unaudited. - The company's audit committee has reviewed and confirmed the Group's financial statements and half-year report for the six months ended June 30, 2025; the financial information is unaudited[199](index=199&type=chunk) Share Capital and Shareholder Information This section details changes in the company's share capital, information on its shareholders, and other related matters. [Changes in Share Capital](index=76&type=section&id=Changes%20in%20Share%20Capital) Pursuant to the approval from the China Securities Regulatory Commission, the company completed a private placement of **357,085,801 A-shares** in March 2025, increasing its total share capital to **2,537,856,127 shares**. The newly issued shares are restricted tradable shares, with Xintongchan's shares locked up for **18 months** and Yunshan Capital and Wantong Expressway's shares locked up for **6 months**. Changes in Share Capital | Share Type | Quantity Before Change | Increase/Decrease in This Change (+) | Quantity After Change | | :--------- | :--------------------- | :--------------------------------- | :-------------------- | | Restricted Shares | 0 | 357,085,801 | 357,085,801 | | Unrestricted Tradable Shares | 2,180,770,326 | 0 | 2,180,770,326 | | **Total Shares** | **2,180,770,326** | **357,085,801** | **2,537,856,127** | - The private placement of **357,085,801 A-shares** was listed on the Shanghai Stock Exchange on March 27, 2025. Shares subscribed by Xintongchan are locked up for **18 months**, while shares subscribed by Yunshan Capital and Wantong Expressway are locked up for **6 months**[204](index=204&type=chunk)[206](index=206&type=chunk) [Shareholder Information](index=77&type=section&id=Shareholder%20Information) As of the end of the reporting period, the company had **19,826 shareholders**. Among the top ten shareholders, Xintongchan Industrial Development (Shenzhen) Co., Ltd., HKSCC NOMINEES LIMITED, and Shenzhen Shenguanghui Highway Development Co., Ltd. were major shareholders. Shenzhen International is the company's controlling shareholder, and Shenzhen Investment Holdings is the ultimate controlling party. - As of the end of the reporting period, the company had a total of **19,826 shareholders**, including **19,591 A-share shareholders** and **235 H-share shareholders**[207](index=207&type=chunk) Top 10 Shareholders' Shareholdings | Shareholder Name | Period-End Shareholding | Proportion (%) | Number of Restricted Shares Held | | :--------------- | :---------------------- | :------------- | :------------------------------- | | Xintongchan Industrial Development (Shenzhen) Co., Ltd. | 730,710,144 | 28.79 | 75,930,144 | | HKSCC NOMINEES LIMITED | 730,277,242 | 28.78 | – | | Shenzhen Shenguanghui Highway Development Co., Ltd. | 411,459,887 | 16.21 | – | | Jiangsu Yunshan Capital Management Co., Ltd. | 242,976,461 | 9.57 | 242,976,461 | | China Merchants Highway Network Technology Holdings Co., Ltd. | 91,092,743 | 3.59 | – | | Guangdong Road and Bridge Construction Development Co., Ltd. | 43,466,862 | 1.71 | – | | Anhui Wantong Expressway Co., Ltd. | 38,179,196 | 1.50 | 38,179,196 | | China Merchants Bank Co., Ltd. - SSE Dividend ETF | 32,694,935 | 1.29 | – | | AU SIU KWOK | 11,000,000 | 0.43 | – | | Bank of China Co., Ltd. - E Fund CSI Dividend ETF | 8,052,232 | 0.32 | – | - Xintongchan Company and Shenguanghui Company are related parties under the common control of Shenzhen International. China Merchants Highway holds over **20%** of Wantong Expressway's shares, and one of its directors also serves as a director of Wantong Expressway, indicating an associated relationship[210](index=210&type=chunk)[213](index=213&type=chunk) - During the reporting period, there were no changes in the company's controlling shareholder or actual controlling party; Shenzhen International is the controlling shareholder, and Shenzhen SASAC is the ultimate controlling party[219](index=219&type=chunk)[226](index=226&type=chunk)[748](index=748&type=chunk) [Other](index=81&type=section&id=Other) During the reporting period, neither the company nor its subsidiaries or joint ventures repurchased, sold, or redeemed any of their listed securities. - During the reporting period, neither the company nor its subsidiaries or joint ventures repurchased, sold, or redeemed any of their listed securities[220](index=220&type=chunk) Directors, Supervisors, and Senior Management Information This section provides details on changes in the company's directors, supervisors, and senior management, as well as their securities interests. [Changes in Directors, Supervisors, and Senior Management](index=82&type=section&id=Changes%20in%20Directors,%20Supervisors,%20and%20Senior%20Management) During the reporting period, there were changes in the company's board of directors, with Ms. Li Xiaoyan and Mr. Dai Jingming resigning as non-executive directors due to work changes and retirement, and Mr. Xu Enli, Ms. Wu Yanling, Ms. Zhang Jian, and Mr. Chen Yunjiang appointed as new directors. - Ms. Li Xiaoyan and Mr. Dai Jingming resigned as non-executive directors due to work changes and retirement, respectively[222](index=222&type=chunk) - Mr. Xu Enli, Ms. Wu Yanling, Ms. Zhang Jian, and Mr. Chen Yunjiang were appointed as directors of the company's Ninth Board of Directors[222](index=222&type=chunk) - Director Chen Yunjiang has been approved to serve as a director of Nanjing Bank Co., Ltd., with his appointment still subject to regulatory approval[223](index=223&type=chunk) [Securities Interests of Directors, Supervisors, and Senior Management](index=82&type=section&id=Securities%20Interests%20of%20Directors,%20Supervisors,%20and%20Senior%20Management) During the reporting period, none of the company's directors, supervisors, or senior management held company shares, nor did they engage in buying or selling company shares or being granted equity incentives. Director Liao Xiangwen's spouse holds ordinary shares and share option interests in Shenzhen International. - During the reporting period, none of the company's directors, supervisors, or senior management engaged in buying or selling company shares or were granted equity incentives, and as of the end of the reporting period, none held company shares[224](index=224&type=chunk)[225](index=225&type=chunk) - Director Liao Xiangwen's spouse holds a long position of **23,332 ordinary shares** in Shenzhen International and interests in Shenzhen International's share option plans 1, 2, and 3, with **332,000, 249,000, and 249,000 options** respectively[226](index=226&type=chunk)[227](index=227&type=chunk) - The company has formulated a "Securities Trading Code" to regulate the trading of company securities by directors, supervisors, and relevant employees, and confirmed compliance during the reporting period[229](index=229&type=chunk) 2025 Interim Financial Statements This section presents the consolidated and parent company financial statements for the interim period of 2025, including balance sheets, income statements, cash flow statements, and statements of changes in equity, along with detailed notes. [Consolidated and Parent Company Balance Sheets](index=84&type=section&id=Consolidated%20and%20Parent%20Company%20Balance%20Sheets) This section presents the Group's and parent company's balance sheets as of June 30, 2025, reflecting their financial position at period-end. The Group's total assets were **72.039 billion yuan**, total liabilities were **39.814 billion yuan**, and equity attributable to parent company shareholders was **26.917 billion yuan**. Consolidated Balance Sheet Summary as of June 30, 2025 | Item | June 30, 2025 (RMB Yuan) | December 31, 2024 (RMB Yuan) | | :--- | :----------------------- | :------------------------- | | Total Current Assets | 12,486,727,242.56 | 7,643,838,856.74 | | Total Non-Current Assets | 59,552,078,424.27 | 59,914,192,091.84 | | **Total Assets** | **72,038,805,666.83** | **67,558,030,948.58** | | Total Current Liabilities | 12,644,080,010.79 | 14,175,295,530.40 | | Total Non-Current Liabilities | 27,169,686,305.83 | 26,181,164,708.79 | | **Total Liabilities** | **39,813,766,316.62** | **40,356,460,239.19** | | Total Equity Attributable to Parent Company Shareholders | 26,916,838,311.98 | 21,903,521,723.27 | | Minority Interests | 5,308,201,038.23 | 5,298,048,986.12 | | **Total Shareholders' Equity** | **32,225,039,350.21** | **27,201,570,709.39** | [Consolidated and Parent Company Income Statements](index=91&type=section&id=Consolidated%20and%20Parent%20Company%20Income%20Statements) This section presents the Group's and parent company's income statements for the period from January 1 to June 30, 2025. The Group achieved a net profit of **1.031 billion yuan**, with net profit attributable to parent company shareholders of **0.960 billion yuan**, and total comprehensive income of **1.106 billion yuan**. Consolidated Income Statement Summary for H1 2025 | Item | Period from January 1 to June 30, 2025 (RMB Yuan) | Period from January 1 to June 30, 2024 (RMB Yuan) | | :--- | :---------------------------------------------- | :---------------------------------------------- | | Operating Revenue | 3,918,555,340.74 | 3,756,892,301.30 | | Operating Profit | 1,252,552,622.82 | 1,094,759,629.06 | | Total Profit | 1,255,312,119.50 | 1,099,724,969.99 | | Net Profit | 1,030,659,129.30 | 851,177,933.98 | | Net Profit Attributable to Parent Company Shareholders | 959,891,990.84 | 773,857,169.47 | | Total Comprehensive Income | 1,106,384,486.55 | 675,175,864.49 | | Basic Earnings Per Share (Yuan/share) | 0.382 | 0.312 | [Consolidated and Parent Company Cash Flow Statements](index=93&type=section&id=Consolidated%20and%20Parent%20Company%20Cash%20Flow%20Statements) This section presents the Group's and parent company's cash flow statements for the period from January 1 to June 30, 2025. The Group's net cash flow from operating activities was **1.955 billion yuan**, net cash outflow from investing activities was **4.600 billion yuan**, and net cash inflow from financing activities was **4.391 billion yuan**. Consolidated Cash Flow Statement Summary for H1 2025 | Item | Period from January 1 to June 30, 2025 (RMB Yuan) | Period from January 1 to June 30, 2024 (RMB Yuan) | | :--- | :---------------------------------------------- | :---------------------------------------------- | | Net Cash Flow from Operating Activities | 1,954,978,990.73 | 1,760,822,084.42 | | Net Cash Flow from Investing Activities | (4,600,359,703.87) | 365,152,522.12 | | Net Cash Flow from Financing Activities | 4,391,204,626.11 | (1,878,358,081.17) | | Net Increase in Cash and Cash Equivalents | 1,744,593,858.44 | 168,421,210.34 | | Cash and Cash Equivalents at Period End | 4,415,087,511.40 | 2,123,641,437.66 | [Consolidated and Parent Company Statements of Changes in Shareholders' Equity](index=96&type=section&id=Consolidated%20and%20Parent%20Company%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) This section presents the Group's and parent company's statements of changes in shareholders' equity for the period from January 1 to June 30, 2025. The Group's total equity attributable to parent company shareholders increased by **5.013 billion yuan**, primarily influenced by total comprehensive income and capital contributions/reductions by shareholders during the period. Consolidated Shareholders' Equity Change Summary for H1 2025 | Item | Share Capital (RMB Yuan) | Other Equity Instruments (RMB Yuan) | Capital Reserve (RMB Yuan) | Other Comprehensive Income (RMB Yuan) | Surplus Reserve (RMB Yuan) | Retained Earnings (RMB Yuan) | Total Equity Attributable to Parent Company Shareholders (RMB Yuan) | | :--- | :----------------------- | :---------------------------------- | :------------------------- | :------------------------------------ | :------------------------- | :--------------------------- | :---------------------------------------------------- | | Beginning Balance | 2,180,770,326.00 | 4,000,000,000.00 | 4,392,194,420.15 | (762,550,544.98) | 3,506,925,959.18 | 8,586,181,562.92 | 21,903,521,723.27 | | Changes in Current Period | 357,085,801.00 | – | 4,311,565,735.60 | 57,850,789.59 | 390,875,528.76 | (104,061,266.24) | 5,013,316,588.71 | | Ending Balance | 2,537,856,127.00 | 4,000,000,000.00 | 8,703,760,155.75 | (704,699,755.39) | 3,897,801,487.94 | 8,482,120,296.68 | 26,916,838,311.98 | [Notes to Financial Statements](index=97&type=section&id=Notes%20to%20Financial%20Statements) This section provides detailed notes to the financial statements, covering the company's basic information, basis of preparation, significant accounting policies and estimates, taxation, notes to major items in consolidated financial statements, changes in consolidation scope, interests in other entities, government grants, financial instrument-related risks, fair value disclosures, related party transactions, commitments and contingencies, and notes to major items in parent company financial statements. [I. Basic Company Information](index=99&type=section&id=I.%20Basic%20Company%20Information) Shenzhen Expressway Company Limited was incorporated in Shenzhen on December 30, 1996, primarily engaging in the investment, construction, and operation management of toll roads and major environmental protection businesses. The company's A-shares and H-shares are listed on the Shanghai Stock Exchange and the Hong Kong Stock Exchange, respectively, with Shenzhen International as its parent company and Shenzhen SASAC as the ultimate controlling party. - Shenzhen Expressway Company Limited was incorporated in Guangdong Province, People's Republic of China, on December 30, 1996, primarily engaging in the investment, construction, and operation management of toll road businesses and major environmental protection businesses[246](index=246&type=chunk) - The company's A-shares and H-shares are listed on the Shanghai Stock Exchange of China and The Stock Exchange of Hong Kong Limited, respectively[246](index=246&type=chunk) - The company's parent company and ultimate controlling party are Shenzhen International Holdings Limited and Shenzhen Municipal State-owned Assets Supervision and Administration Commission, respectively[246](index=246&type=chunk) [II. Basis of Financial Statement Preparation](index=99&type=section&id=II.%20Basis%20of%20Financial%20Statement%20Preparation) The Group's financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance and relevant regulations, and comply with the disclosure requirements of the Hong Kong Companies Ordinance and HKEX Listing Rules. The financial statements are prepared on a going concern basis using the accrual basis of accounting and historical cost as the measurement basis, with certain financial instruments measured at fair value. - The Group implements the Accounting Standards for Business Enterprises and relevant regulations issued by the Ministry of Finance, and discloses relevant financial information in accordance with "Rules for the Preparation of Information Disclosure by Companies Issuing Public Securities No. 15 - General Provisions for Financial Reports (Revised in 2023)," the Hong Kong Companies Ordinance, and the Hong Kong Stock Exchange Listing Rules[248](index=248&type=chunk) - These financial statements are prepared on a going concern basis, as the Group can address insufficient working capital through reasonable financing arrangements[249](index=249&type=chunk) - The Group's accounting is based on the accrual method, and these financial statements use historical cost as the measurement basis, except for certain financial instruments measured at fair value[250](index=250&type=chunk) [III. Significant Accounting Policies and Accounting Estimates](index=101&type=section&id=III.%20Significant%20Accounting%20Policies%20and%20Accounting%20Estimates) This section elaborates on the significant accounting policies and estimates followed by the Group in preparing its financial statements, including business combinations, consolidated financial statement preparation, financial instrument classification

[Corporate Information](index=2&type=section&id=Corporate%20Information) [Board of Directors](index=3&type=section&id=Board%20of%20Directors) The company's Board of Directors comprises executive, non-executive, and independent non-executive directors, with various committees established - Board members include Executive Directors Mr. Zhang Ping (Chairman) and Mr. Lu Zhenwei, Non-executive Directors Mr. Liu Guoxi, Mr. Su Yongjian, Mr. Li Hao, Mr. Huang Jiao, Mr. Wang Cheng, and Independent Non-executive Directors Mr. Jin Xinbin, Mr. Zhu Jianbiao, Mr. Zeng Ming, and Mr. Liu Jingwei[3](index=3&type=chunk)[4](index=4&type=chunk) - Committees include the Audit Committee (chaired by Mr. Liu Jingwei), Remuneration Committee (chaired by Mr. Liu Jingwei), Nomination Committee (chaired by Mr. Zhang Ping), Risk Control Committee (chaired by Mr. Zhang Ping), and Sustainable Development Committee (chaired by Mr. Zhang Ping)[3](index=3&type=chunk)[4](index=4&type=chunk)[5](index=5&type=chunk) [Other Corporate Details](index=4&type=section&id=Other%20Corporate%20Details) The company discloses its auditor, legal advisors, share registrar, registered office, principal place of business, main banks, and website - The auditor is Grant Thornton Hong Kong Limited[7](index=7&type=chunk)[8](index=8&type=chunk) - Legal advisors include Conyers Dill & Pearman in Bermuda, Jones Day in Hong Kong, and Beijing Yingke Law Firm and Beijing Zhongce Law Firm in mainland China[7](index=7&type=chunk)[8](index=8&type=chunk) - Principal bankers include Agricultural Bank of China, Bank of China, CITIC Bank, and China Construction Bank[9](index=9&type=chunk)[10](index=10&type=chunk) - The company's website is http://www.bjei.com[10](index=10&type=chunk) [Management Discussion and Analysis](index=5&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=6&type=section&id=Business%20Review) The group aims to be an international clean energy operator, expanding its generation business and significantly increasing total electricity output - The group primarily engages in the development, investment, operation, and management of power stations and other clean energy projects, aiming to become the most respected international clean energy ecological investment and operation service provider[11](index=11&type=chunk)[14](index=14&type=chunk) [Diversification of Investment Locations and Portfolios](index=6&type=section&id=Diversification%20of%20Investment%20Locations%20and%20Portfolios) The group actively expands its solar, wind, hydro, and energy storage businesses across 28 Chinese provinces and internationally - As of June 30, 2025, the group owned **187 solar power stations** (December 31, 2024: 166), **39 wind power stations** (December 31, 2024: 38), **26 hydro power stations** (December 31, 2024: 26), and **3 energy storage power stations** (December 31, 2024: 3)[12](index=12&type=chunk)[15](index=15&type=chunk) - Total grid-connected installed capacity was approximately **13,692 MW** (December 31, 2024: approximately 12,639 MW), an increase of approximately **8.3%**[12](index=12&type=chunk)[15](index=15&type=chunk) - Power stations are distributed across **28 provinces in China**, with overseas projects in Australia and Vietnam[12](index=12&type=chunk)[15](index=15&type=chunk) [Other Clean Energy Projects](index=7&type=section&id=Other%20Clean%20Energy%20Projects) The group holds development rights for approximately 5 GW of hydropower and focuses on optimizing its asset structure and diversifying energy supply - The group holds hydropower development rights with an estimated capacity of approximately **5 GW**, where the company indirectly holds a **75% equity interest** in the project company, and the remaining **25%** is indirectly held by the People's Government of the Tibet Autonomous Region[17](index=17&type=chunk)[20](index=20&type=chunk) - In the short term, the group will continue to focus on developing solar, wind, hydro, and energy storage businesses, improving its asset structure, with a long-term goal of supplementing diverse energy supplies[18](index=18&type=chunk)[20](index=20&type=chunk) [Electricity Generation](index=7&type=section&id=Electricity%20Generation) Total electricity generation from the company's power stations significantly increased by 51.7% to approximately 11,514,751 MWh Total Electricity Generation by Power Generation Subsidiaries | Indicator | H1 2025 (MWh) | H1 2024 (MWh) | Change Rate | | :--- | :--- | :--- | :--- | | **Total Electricity Generation** | 11,514,751 | 7,590,356 | +51.7% | Summary of Power Generation Subsidiaries' Power Stations | Type | June 30, 2025 (MW) | June 30, 2024 (MW) | H1 2025 Electricity Generation (MWh) | H1 2024 Electricity Generation (MWh) | | :--- | :--- | :--- | :--- | :--- | | Solar | 7,958 | 6,391 | 4,863,871 | 4,220,057 | | Wind | 4,432 | 2,602 | 5,177,066 | 1,874,559 | | Hydro | 952 | 952 | 1,348,606 | 1,495,740 | | Energy Storage | 350 | 100 | 125,208 | – | | **Total** | **13,692** | **10,045** | **11,514,751** | **7,590,356** | - Energy storage power stations officially commenced production and operation in the second half of 2024, hence no relevant data for the first half of 2024[24](index=24&type=chunk)[25](index=25&type=chunk) [Financing](index=10&type=section&id=Financing) The group diversified financing channels, reduced its weighted average annual interest rate, and secured funding for future business expansion - During the reporting period, the weighted average annual interest rate for bank and other borrowings was approximately **3.17%**, a significant decrease from approximately **3.73%** as of December 31, 2024[30](index=30&type=chunk)[33](index=33&type=chunk) - The decrease in interest rates was primarily due to the refinancing of high-interest loans and a decline in benchmark rates such as LPR and SOFR[30](index=30&type=chunk)[33](index=33&type=chunk) - The company completed the issuance of two tranches of perpetual medium-term notes in February and May 2025, with sizes of **RMB 900 million** and **RMB 600 million** respectively, fixed distribution rates of **2.47%** and **2.38%** per annum, with net proceeds used to repay domestic borrowings in China[31](index=31&type=chunk)[33](index=33&type=chunk) - Jingneng Development secured private perpetual medium-term note funding of **RMB 1,500 million** (2024) and **RMB 1,050 million** (H1 2025) through investment agreements with China Life Investment and Allianz Insurance, used to supplement working capital and repay borrowings[32](index=32&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk)[39](index=39&type=chunk) [Financial Review](index=11&type=section&id=Financial%20Review) The group achieved slight net profit growth, increased revenue and EBITDA, but experienced a decline in average electricity prices Key Financial Indicators | Indicator | H1 2025 (RMB'million) | H1 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Net Profit | 293 | 292 | +0.34% | | Revenue | 4,086 | 3,272 | +24.87% | | EBITDA | 3,276 | 2,686 | +21.97% | - Revenue and EBITDA growth were primarily attributable to the expansion of grid-connected installed capacity from approximately **10,045 MW** as of June 30, 2024, to approximately **13,692 MW** as of June 30, 2025, an increase of approximately **36.3%**, as well as efficient operation and management of power stations[37](index=37&type=chunk)[41](index=41&type=chunk) - The average electricity price per kWh (excluding VAT) decreased from approximately **RMB 0.43** as of June 30, 2024, to approximately **RMB 0.35** for the current period, mainly due to the continuous increase in grid-connected installed capacity of grid-parity solar and wind power projects, whose electricity prices do not include subsidies[38](index=38&type=chunk)[41](index=41&type=chunk) [Finance Costs](index=12&type=section&id=Finance%20Costs) Total finance costs slightly decreased, primarily due to the refinancing of high-interest loans into lower-interest RMB loans Total Finance Costs | Indicator | H1 2025 (RMB'million) | H1 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | **Total Finance Costs** | 1,099 | 1,105 | -0.54% | - The decrease in finance costs was mainly due to the gradual refinancing of certain high-interest loans with lower-interest RMB loans[43](index=43&type=chunk)[47](index=47&type=chunk) [Trade, Bills and Tariff Adjustment Receivables](index=12&type=section&id=Trade%2C%20Bills%20and%20Tariff%20Adjustment%20Receivables) Total trade, bills, and tariff adjustment receivables significantly increased, mainly from government subsidies for renewable energy projects Details of Trade, Bills and Tariff Adjustment Receivables | Indicator | June 30, 2025 (RMB'million) | December 31, 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Trade and Bills Receivables | 881 | 590 | +49.32% | | Tariff Adjustment Project List | 9,021 | 6,906 | +30.63% | | Other Tariff Adjustments | 624 | 559 | +11.63% | | **Total** | **10,526** | **8,055** | **+30.68%** | - Tariff adjustment receivables primarily refer to central government subsidies for renewable energy projects collected from State Grid and Inner Mongolia Power based on power purchase agreements and government policies[49](index=49&type=chunk) [Bank and Other Borrowings](index=13&type=section&id=Bank%20and%20Other%20Borrowings) As of June 30, 2025, total bank and other borrowings were RMB 69,557 million, with RMB loans being the largest component Maturity and Currency Composition of Bank and Other Borrowings | Currency | Within 1 Year (RMB'million) | 2nd Year (RMB'million) | 3-5 Years (RMB'million) | 6-10 Years (RMB'million) | After 10 Years (RMB'million) | Total (RMB'million) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | RMB | 9,867 | 11,767 | 19,832 | 11,438 | 4,249 | 57,153 | | USD | 6,394 | 3,472 | – | – | – | 9,866 | | AUD | 1,890 | – | – | – | – | 1,890 | | HKD | 648 | – | – | – | – | 648 | | **Total** | **18,799** | **15,239** | **19,832** | **11,438** | **4,249** | **69,557** | - The group actively seeks financing/refinancing opportunities to reduce funding costs and improve liquidity[52](index=52&type=chunk) [Key Performance Indicators](index=13&type=section&id=Key%20Performance%20Indicators) Changes in key performance indicators reflect business expansion, with improved debt ratios and interest coverage despite a slight EBITDA margin decrease - The changes in various key performance indicators during the period primarily resulted from the expansion of the group's business scale[54](index=54&type=chunk)[56](index=56&type=chunk) [EBITDA Margin Ratio](index=13&type=section&id=EBITDA%20Margin%20Ratio) EBITDA margin decreased by approximately 2% to 80%, mainly due to business expansion and additional operating expenses EBITDA Margin Ratio | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | **EBITDA Margin Ratio** | 80% | 82% | -2% | [Debt to EBITDA Ratio](index=14&type=section&id=Debt%20to%20EBITDA%20Ratio) The debt to EBITDA ratio improved from 22.7 to 19.5, indicating enhanced debt repayment capability Debt to EBITDA Ratio | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | **Debt to EBITDA Ratio** | 19.5 | 22.7 | -3.2 | [Funds from Operations to Net Debt Ratio](index=14&type=section&id=Funds%20from%20Operations%20to%20Net%20Debt%20Ratio) The funds from operations to net debt ratio increased from 2.7% to 3.5%, reflecting stronger debt servicing capacity from operating income Funds from Operations to Net Debt Ratio | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | **Funds from Operations to Net Debt Ratio** | 3.5% | 2.7% | +0.8% | [Interest Coverage Ratio](index=14&type=section&id=Interest%20Coverage%20Ratio) The interest coverage ratio rose from 2.61 to 2.98, indicating an improved ability to cover interest expenses on interest-bearing debt Interest Coverage Ratio | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | **Interest Coverage Ratio** | 2.98 | 2.61 | +0.37 | [Liquidity, Financial Resources, Gearing Ratio and Capital Structure](index=15&type=section&id=Liquidity%2C%20Financial%20Resources%2C%20Gearing%20Ratio%20and%20Capital%20Structure) The group's current liabilities exceeded current assets, but the gearing ratio decreased due to perpetual medium-term note issuance - As of June 30, 2025, the group's current assets were approximately **RMB 19,581 million**, and current liabilities were approximately **RMB 26,515 million**[62](index=62&type=chunk)[64](index=64&type=chunk) - The group formulates treasury policies to reduce funding costs and uses derivative financial instruments (cross-currency swaps) to hedge against foreign exchange and interest rate fluctuations[63](index=63&type=chunk)[65](index=65&type=chunk) Capital Structure | Indicator | June 30, 2025 (RMB'million) | December 31, 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Bank and Other Borrowings | 69,542 | 68,582 | +1.40% | | Less: Cash Deposits | (5,694) | (5,604) | +1.61% | | Net Debt | 63,848 | 62,978 | +1.38% | | Total Equity | 25,460 | 22,660 | +12.36% | | Total Capital | 89,308 | 85,638 | +4.29% | | **Gearing Ratio** | **71.5%** | **73.5%** | **-2.0%** | - The decrease in the gearing ratio was primarily attributable to the increase in equity due to the issuance of perpetual medium-term notes[69](index=69&type=chunk)[70](index=70&type=chunk) - The group will strive to reduce its gearing ratio through deleveraging, including co-investing in power stations with strategic business partners to reduce capital expenditure[69](index=69&type=chunk)[70](index=70&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=17&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) The group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period - During the period, the group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[74](index=74&type=chunk)[79](index=79&type=chunk) [Performance and Future Prospects for Significant Investments Held and Future Plans for Material Investments or Capital Assets](index=17&type=section&id=Performance%20and%20Future%20Prospects%20for%20Significant%20Investments%20Held%20and%20Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of June 30, 2025, the group held no significant investments but actively seeks opportunities to enhance future financial performance - As of June 30, 2025, the group did not hold any significant investments or capital assets[75](index=75&type=chunk)[80](index=80&type=chunk) - The group will closely monitor market changes and actively seek promising investment opportunities to enhance future financial performance and profitability[75](index=75&type=chunk)[80](index=80&type=chunk) [Material Reliance on Key Customers](index=17&type=section&id=Material%20Reliance%20on%20Key%20Customers) The group's electricity sales heavily rely on Chinese state-owned power companies, with significant receivables from State Grid and Inner Mongolia Power - The major electricity sales customers in China are subsidiaries of State Grid Corporation of China and Inner Mongolia Power (Group) Co., Ltd[76](index=76&type=chunk)[81](index=81&type=chunk) - As of June 30, 2025, receivables from State Grid and Inner Mongolia Power subsidiaries accounted for approximately **74.5%** and **17.9%** respectively of the group's total trade, bills, and tariff adjustment receivables[76](index=76&type=chunk)[81](index=81&type=chunk) [Charge on Assets](index=17&type=section&id=Charge%20on%20Assets) Approximately 30.5% of the group's bank and other borrowings are secured by power modules, guarantee deposits, electricity sales rights, or subsidiary equity - As of June 30, 2025, approximately **30.5%** of the group's bank and other borrowings were secured by pledges of certain power modules and equipment, guarantee deposits, rights to electricity sales of certain subsidiaries, and/or pledges of shares/equity interests in certain subsidiaries of the group[78](index=78&type=chunk)[82](index=82&type=chunk) [Employees and Remuneration Policies](index=18&type=section&id=Employees%20and%20Remuneration%20Policies) The group's full-time employee count increased to 1,918, with competitive remuneration and increased total employee benefit expenses Employee Count and Benefit Expenses | Indicator | June 30, 2025 | June 30, 2024 | Change Rate | | :--- | :--- | :--- | :--- | | Full-time Employee Count | 1,918 | 1,856 | +3.34% | | Total Employee Benefit Expenses (RMB'million) | 279 | 251 | +11.16% | - Employee remuneration is determined based on job nature, individual qualifications, performance, work experience, and market trends, with additional medical insurance, discretionary bonuses, training programs, and share option schemes provided[84](index=84&type=chunk)[87](index=87&type=chunk) [Exposure to Fluctuations in Exchange Rates and Related Hedges](index=18&type=section&id=Exposure%20to%20Fluctuations%20in%20Exchange%20Rates%20and%20Related%20Hedges) Operating primarily in mainland China and Hong Kong, the group faces minimal exchange rate risk, with management monitoring foreign currency exposure - The group primarily operates in mainland China and Hong Kong, with most transactions in mainland China settled in RMB, expecting minimal exchange rate fluctuation risk[85](index=85&type=chunk)[88](index=88&type=chunk) - Most transactions in Hong Kong are settled in HKD and USD, with exchange rate fluctuation risk under the linked exchange rate system mainly arising from conversion to the presentation currency[85](index=85&type=chunk)[88](index=88&type=chunk) - No other hedging instruments were used during the period, but management will strengthen monitoring of foreign currency risk when necessary[85](index=85&type=chunk)[88](index=88&type=chunk) [Contingent Liabilities](index=18&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the group had no material contingent liabilities other than those disclosed in the interim report - Except as stated and disclosed in this interim report, as of June 30, 2025, the group had no other material contingent liabilities[86](index=86&type=chunk)[89](index=89&type=chunk) [Material Events After the Date of Statement of Financial Position](index=19&type=section&id=Material%20Events%20After%20the%20Date%20of%20Statement%20of%20Financial%20Position) No other material events occurred after June 30, 2025, up to the date of the interim report, except as disclosed in Note 20 - Except as disclosed in Note 20 to the unaudited condensed consolidated interim financial information, the group had no other material events after June 30, 2025, up to the date of this interim report[90](index=90&type=chunk)[94](index=94&type=chunk) [Prospects](index=19&type=section&id=Prospects) The company will transition to a balanced asset operation model, explore light-asset development, and expand in hydro, gas turbine, and green hydrogen businesses - **2025** marks the final year of the "14th Five-Year Plan" and a critical year for the company's high-quality development, as the new energy industry enters an era of inventory competition where underlying asset quality becomes a core factor[91](index=91&type=chunk)[95](index=95&type=chunk) - Strategically, the company will shift from heavy asset ownership to a balanced asset operation approach, prioritizing comprehensive project development costs and regional consumption capacity, exploring light-asset development and operation models to maximize power station asset value creation[93](index=93&type=chunk)[95](index=95&type=chunk) - In business expansion, the company will deepen its hydropower business in Yunnan and Tibet, steadily advance gas turbine projects, transition integrated energy businesses towards light assets, and monitor the latest developments in green hydrogen business[97](index=97&type=chunk)[100](index=100&type=chunk) - In operational management, the focus will be on quality improvement and efficiency enhancement, implementing comprehensive cost control, strictly controlling engineering costs, conducting post-project evaluations, improving regional benchmarking rankings, emphasizing electricity spot trading, and introducing equity financing to reduce funding costs[98](index=98&type=chunk)[101](index=101&type=chunk) - The company aims to accelerate the construction of a clean energy industrial ecosystem that is "green-dominated, multi-energy complementary, and intelligently coordinated," contributing to global energy transition and climate change response[99](index=99&type=chunk)[101](index=101&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss](index=20&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) [Interim Condensed Consolidated Statement of Profit or Loss](index=20&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, net profit slightly increased, revenue and EBITDA significantly improved, but finance costs remained high Summary of Interim Condensed Consolidated Statement of Profit or Loss | Indicator | H1 2025 (RMB'million) | H1 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Electricity Sales | 2,945 | 2,094 | +40.64% | | Tariff Subsidies | 1,141 | 1,178 | -3.14% | | **Revenue** | **4,086** | **3,272** | **+24.87%** | | Other Income | 58 | 47 | +23.40% | | Employee Benefit Expenses | (279) | (251) | +11.16% | | Operation and Maintenance Costs | (232) | (150) | +54.67% | | Professional Fees | (85) | (48) | +77.08% | | Taxes and Surcharges | (48) | (28) | +71.43% | | Other Expenses | (224) | (156) | +43.59% | | **EBITDA** | **3,276** | **2,686** | **+21.97%** | | Depreciation of Property, Plant and Equipment | (1,683) | (1,102) | +52.72% | | Depreciation of Right-of-Use Assets | (84) | (66) | +27.27% | | Amortisation of Intangible Assets | (3) | – | N/A | | Finance Income | 2 | 49 | -95.92% | | Finance Costs | (1,099) | (1,105) | -0.54% | | Share of Profits of Investments Accounted for Using Equity Method | 40 | 17 | +135.29% | | **Profit Before Income Tax** | **448** | **434** | **+3.23%** | | Income Tax Expense | (155) | (142) | +9.15% | | **Profit for the Period** | **293** | **292** | **+0.34%** | | Profit Attributable to Equity Holders of the Company | 173 | 33 | +424.24% | | Non-controlling Interests | 120 | 259 | -53.67% | | Basic and Diluted Earnings Per Share (RMB cents) | 7.87 | 1.48 | +431.76% | | Dividends | 193 | 196 | -1.53% | [Interim Condensed Consolidated Statement of Comprehensive Income](index=23&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) [Interim Condensed Consolidated Statement of Comprehensive Income](index=23&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, total comprehensive income significantly increased, driven by a shift from currency translation loss to gain Summary of Interim Condensed Consolidated Statement of Comprehensive Income | Indicator | H1 2025 (RMB'million) | H1 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Profit for the Period | 293 | 292 | +0.34% | | Currency Translation Differences | 195 | (134) | N/A (from loss to gain) | | **Total Comprehensive Income for the Period** | **488** | **158** | **+208.86%** | | Attributable to Equity Holders of the Company | 368 | (101) | N/A (from loss to gain) | | Non-controlling Interests | 120 | 259 | -53.67% | [Interim Condensed Consolidated Statement of Financial Position](index=24&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) [Interim Condensed Consolidated Statement of Financial Position](index=24&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets and equity increased, but current liabilities still exceeded current assets, indicating liquidity pressure Summary of Interim Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB'million) | December 31, 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | **Total Non-current Assets** | **86,046** | **85,867** | **+0.21%** | | Property, Plant and Equipment | 76,091 | 75,749 | +0.45% | | Right-of-Use Assets | 2,940 | 2,858 | +2.87% | | Investments Accounted for Using Equity Method | 1,998 | 1,898 | +5.27% | | **Total Current Assets** | **19,581** | **16,602** | **+17.94%** | | Trade, Bills and Tariff Adjustment Receivables | 10,525 | 8,054 | +30.68% | | Cash and Cash Equivalents | 5,398 | 5,195 | +3.91% | | **Total Assets** | **105,627** | **102,469** | **+3.08%** | | **Total Equity** | **25,460** | **22,660** | **+12.36%** | | Perpetual Medium-Term Notes | 13,322 | 10,777 | +23.62% | | Non-controlling Interests | 7,273 | 7,133 | +1.96% | | **Total Non-current Liabilities** | **53,652** | **50,833** | **+5.54%** | | Bank and Other Borrowings (Non-current) | 50,758 | 47,936 | +5.89% | | **Total Current Liabilities** | **26,515** | **28,976** | **-8.49%** | | Bank and Other Borrowings (Current) | 18,784 | 20,646 | -9.02% | | **Total Liabilities** | **80,167** | **79,809** | **+0.45%** | | **Total Equity and Liabilities** | **105,627** | **102,469** | **+3.08%** | - As of June 30, 2025, the group's current liabilities exceeded current assets by approximately **RMB 6,934 million**[125](index=125&type=chunk) [Interim Condensed Consolidated Statement of Changes in Equity](index=26&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) [Interim Condensed Consolidated Statement of Changes in Equity](index=26&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity significantly increased due to perpetual medium-term note issuance and period profit Summary of Interim Condensed Consolidated Statement of Changes in Equity | Indicator | June 30, 2025 (RMB'million) | January 1, 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Total Equity at Beginning of Period | 22,660 | 17,063 | +32.81% | | Profit for the Period | 293 | 292 | +0.34% | | Other Comprehensive Income | 195 | (134) | N/A | | Final Dividend Declared for 2024 | (193) | – | N/A | | Profit Attributable to Holders of Perpetual Medium-Term Notes | (87) | – | N/A | | Distributions to Holders of Perpetual Medium-Term Notes | (87) | – | N/A | | Issuance of Perpetual Medium-Term Notes | 2,545 | 2,294 | +10.94% | | Capital Contribution from Non-controlling Interests | 33 | 1,323 | -97.50% | | Dividends Declared to Non-controlling Interests | (13) | (217) | -94.01% | | **Total Equity at End of Period** | **25,460** | **20,438** | **+24.57%** | - The issuance of perpetual medium-term notes significantly increased total equity, with **RMB 2,545 million** issued in the first half of 2025[112](index=112&type=chunk) - Profit attributable to equity holders of the company significantly increased from **RMB 33 million** in the first half of 2024 to **RMB 173 million** in the first half of 2025[112](index=112&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=28&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) [Interim Condensed Consolidated Statement of Cash Flows](index=28&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash inflow from operating activities decreased, while net cash outflows from investing and financing activities also significantly declined Summary of Interim Condensed Consolidated Statement of Cash Flows | Indicator | H1 2025 (RMB'million) | H1 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Net Cash Inflow from Operating Activities | 715 | 1,273 | -43.83% | | Net Cash Outflow from Investing Activities | (2,341) | (7,012) | -66.61% | | Net Cash Inflow from Financing Activities | 1,802 | 8,052 | -77.62% | | Net Increase in Cash and Cash Equivalents | 176 | 2,313 | -92.39% | | Cash and Cash Equivalents at End of Period | 5,398 | 8,539 | -36.89% | - Capital expenditure significantly decreased from **RMB 7,216 million** in the first half of 2024 to **RMB 2,355 million** in the first half of 2025[115](index=115&type=chunk) - The decrease in net cash inflow from financing activities was primarily due to changes in proceeds from and repayment of bank borrowings, as well as a reduction in capital contributions from non-controlling interests[116](index=116&type=chunk) [Notes to the Unaudited Condensed Consolidated Interim Financial Information](index=29&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Interim%20Financial%20Information) [GENERAL INFORMATION](index=30&type=section&id=GENERAL%20INFORMATION) The company, incorporated in Bermuda, primarily engages in power station and clean energy projects, controlled by Beijing Energy Group - The company's ordinary shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited[117](index=117&type=chunk) - Beijing Energy Investment Group (Hong Kong) Co., Limited is the company's direct controlling shareholder, holding approximately **32.14%** of the issued share capital, and is ultimately wholly-owned indirectly by the Beijing State-owned Assets Supervision and Administration Commission[118](index=118&type=chunk)[122](index=122&type=chunk) - The group primarily engages in the development, investment, operation, and management of power stations and other clean energy projects[119](index=119&type=chunk)[123](index=123&type=chunk) [BASIS OF PREPARATION](index=30&type=section&id=BASIS%20OF%20PREPARATION) The financial information is prepared under HKAS 34 using the historical cost convention, assessing going concern, and disclosing accounting policy changes and risk management - This financial information is prepared in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[120](index=120&type=chunk)[124](index=124&type=chunk) - Except for financial assets and liabilities measured at fair value through profit or loss, this financial information is prepared on a historical cost basis[121](index=121&type=chunk)[124](index=124&type=chunk) [Going Concern](index=31&type=section&id=Going%20Concern) Despite current liabilities exceeding current assets and significant short-term debt, the board believes the group has sufficient working capital for continued operation - As of June 30, 2025, the group's current liabilities exceeded current assets by approximately **RMB 6,934 million**[125](index=125&type=chunk)[129](index=129&type=chunk) - Approximately **RMB 18,784 million** of bank and other borrowings are due for repayment within the next twelve months[125](index=125&type=chunk)[129](index=129&type=chunk) - The group has successfully issued **RMB 450 million** in perpetual medium-term notes and secured approximately **RMB 1,565 million** in long-term bank and other borrowings[128](index=128&type=chunk)[129](index=129&type=chunk)[131](index=131&type=chunk) - The group received approximately **RMB 6,815 million** in loan support from its controlling shareholder, Beijing Energy Group, and its subsidiaries[131](index=131&type=chunk) - The Board is negotiating with banks and other financial institutions to raise approximately **RMB 5,196 million** in new short-term or long-term financing, utilizing the unused credit guarantee facilities provided by Beijing Energy Group[131](index=131&type=chunk) - Existing and future renewable energy projects are expected to generate sufficient operating cash inflows[132](index=132&type=chunk) [Changes in Accounting Policies and Disclosures](index=34&type=section&id=Changes%20in%20Accounting%20Policies%20and%20Disclosures) The adoption of HKAS 21 (Revised) "Lack of Exchangeability" had no material impact, and other new HKFRSs are not expected to significantly affect financial statements - The group adopted HKAS 21 (Revised) "Lack of Exchangeability," effective from January 1, 2025, during the period[137](index=137&type=chunk)[141](index=141&type=chunk) - This amendment had no material impact on the group's current and prior period financial position and performance[139](index=139&type=chunk)[141](index=141&type=chunk) - Disclosures include Hong Kong Financial Reporting Standards (HKFRS 18, HKFRS 19, etc.) that have been issued but are not yet effective, which are not expected to have a significant impact on the financial statements[142](index=142&type=chunk)[143](index=143&type=chunk)[145](index=145&type=chunk)[146](index=146&type=chunk) [Financial Risk Management](index=36&type=section&id=Financial%20Risk%20Management) The group faces market, credit, and liquidity risks, using cross-currency swaps to mitigate foreign exchange and interest rate fluctuations - The group's operations expose it to market risks (including foreign exchange risk and cash flow interest rate risk), credit risk, and liquidity risk[150](index=150&type=chunk)[154](index=154&type=chunk) - To mitigate foreign exchange risk and cash flow interest rate risk, the group uses cross-currency swaps to convert floating-rate foreign currency borrowings into fixed-rate RMB borrowings[155](index=155&type=chunk)[159](index=159&type=chunk) [REVENUE AND SEGMENT INFORMATION](index=37&type=section&id=REVENUE%20AND%20SEGMENT%20INFORMATION) The group's operating segments include solar, wind, hydro, and other businesses, with mainland China as the primary revenue source and high customer concentration - The group's operating segments include solar power generation business, wind power generation business, and hydro power generation business, as well as others (including energy storage business, corporate income and expenses, and other direct investments)[160](index=160&type=chunk)[161](index=161&type=chunk)[162](index=162&type=chunk) [Business Segments](index=38&type=section&id=Business%20Segments) For the six months ended June 30, 2025, solar power contributed the highest revenue and segment results, with significant growth in wind power revenue Business Segment Revenue and Results | Segment | H1 2025 Revenue (RMB'million) | H1 2025 Segment Results (RMB'million) | H1 2024 Revenue (RMB'million) | H1 2024 Segment Results (RMB'million) | | :--- | :--- | :--- | :--- | :--- | | Solar Power Generation Business | 2,161 | 1,115 | 2,168 | 1,273 | | Wind Power Generation Business | 1,529 | 660 | 747 | 339 | | Hydro Power Generation Business | 330 | 130 | 357 | 150 | | Others | 66 | (359) | – | (267) | | **Total** | **4,086** | **1,546** | **3,272** | **1,495** | - Wind power generation business revenue increased from **RMB 747 million** in the first half of 2024 to **RMB 1,529 million** in the first half of 2025, a growth of **104.68%**[164](index=164&type=chunk) [Geographical Segments](index=40&type=section&id=Geographical%20Segments) The group's main revenue and non-current assets are concentrated in China, with minor contributions from Australia and Vietnam Revenue by Geographical Segment | Region | H1 2025 (RMB'million) | H1 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | China | 3,918 | 3,123 | +25.46% | | Australia | 146 | 130 | +12.31% | | Vietnam | 22 | 19 | +15.79% | | **Total** | **4,086** | **3,272** | **+24.87%** | Non-current Assets by Geographical Segment | Region | June 30, 2025 (RMB'million) | December 31, 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | China | 75,166 | 75,048 | +0.16% | | Australia | 7,321 | 6,841 | +7.02% | | Vietnam | 469 | 505 | -7.13% | | Hong Kong | 3 | 4 | -25.00% | | **Total** | **82,959** | **82,398** | **+0.68%** | [Information About Major Customers](index=41&type=section&id=Information%20About%20Major%20Customers) The group's revenue is highly concentrated among a few key customers, with Customers A and B contributing the majority in H1 2025 Major Customer Revenue Contribution | Customer | H1 2025 (RMB'million) | H1 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Customer A | 2,833 | 2,165 | +30.85% | | Customer B | 513 | 388 | +32.22% | | Customer C | 315 | 336 | -6.25% | - In the first half of 2025, Customer A and Customer B each contributed over **10%** to the group's total revenue[172](index=172&type=chunk)[173](index=173&type=chunk) - Customer C's contribution to total revenue did not exceed **10%** in the first half of 2025[175](index=175&type=chunk) [FINANCE COSTS](index=41&type=section&id=FINANCE%20COSTS) For the six months ended June 30, 2025, total finance costs slightly decreased, primarily comprising interest expenses on bank and other borrowings Details of Finance Costs | Indicator | H1 2025 (RMB'million) | H1 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Interest Expense on Bank and Other Borrowings | 1,046 | 1,060 | -1.32% | | Loan Financing Fees for Bank and Other Borrowings | 20 | 19 | +5.26% | | Interest Expense on Lease Liabilities | 31 | 24 | +29.17% | | Interest Expense on Restoration Provisions | 2 | 2 | 0.00% | | **Total** | **1,099** | **1,105** | **-0.54%** | [INCOME TAX EXPENSES](index=42&type=section&id=INCOME%20TAX%20EXPENSES) For the six months ended June 30, 2025, income tax expenses increased, mainly from current income tax, with tax incentives for renewable energy projects Details of Income Tax Expenses | Indicator | H1 2025 (RMB'million) | H1 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Current Income Tax | 169 | 156 | +8.33% | | Deferred Income Tax | (14) | (14) | 0.00% | | **Total** | **155** | **142** | **+9.15%** | - The group's operations in China are subject to a **25%** PRC corporate income tax, with certain renewable energy project subsidiaries enjoying preferential tax reductions[178](index=178&type=chunk)[179](index=179&type=chunk) [EARNINGS PER SHARE](index=43&type=section&id=EARNINGS%20PER%20SHARE) For the six months ended June 30, 2025, basic and diluted earnings per share attributable to equity holders significantly increased due to higher profit Earnings Per Share | Indicator | H1 2025 (RMB cents) | H1 2024 (RMB cents) | Change Rate | | :--- | :--- | :--- | :--- | | Profit Attributable to Equity Holders of the Company (RMB'million) | 173 | 33 | +424.24% | | Weighted Average Number of Ordinary Shares (million shares) | 2,198 | 2,236 | -1.61% | | **Basic Earnings Per Share** | **7.87** | **1.48** | **+431.76%** | | **Diluted Earnings Per Share** | **7.87** | **1.48** | **+431.76%** | - The calculation of basic and diluted earnings per share has been adjusted for the effect of the share consolidation effective November 1, 2024[184](index=184&type=chunk) - Diluted earnings per share calculation did not assume the exercise of share options as their exercise price was higher than the average market price of the shares[187](index=187&type=chunk)[189](index=189&type=chunk) [DIVIDENDS](index=45&type=section&id=DIVIDENDS) The company declared and paid the 2024 final dividend in H1 2025 but did not declare an interim dividend for the period Dividend Declaration | Indicator | H1 2025 (RMB'million) | H1 2024 (RMB'million) | | :--- | :--- | :--- | | 2024 Final Dividend | 193 | – | | 2023 Final Dividend | – | 196 | | **Total** | **193** | **196** | - The 2024 final dividend of **HKD 10.00 cents** (approximately **RMB 9.12 cents**) per ordinary share, totaling approximately **HKD 220 million** (approximately **RMB 193 million**), was paid on July 11, 2025[191](index=191&type=chunk) - The company did not pay or declare any interim dividend for ordinary shares during the period[192](index=192&type=chunk)[193](index=193&type=chunk) [PROPERTY, PLANT AND EQUIPMENT](index=46&type=section&id=PROPERTY%2C%20PLANT%20AND%20EQUIPMENT) As of June 30, 2025, the carrying value of the group's property, plant, and equipment slightly increased, influenced by additions and exchange differences Changes in Property, Plant and Equipment | Indicator | June 30, 2025 (RMB'million) | December 31, 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Beginning Balance | 75,749 | 64,150 | +18.08% | | Additions | 1,820 | 13,428 | -86.45% | | Depreciation | (1,683) | (2,475) | -32.00% | | Exchange Differences | 205 | (417) | N/A | | **Ending Balance** | **76,091** | **75,749** | **+0.45%** | [LEASES](index=46&type=section&id=LEASES) As of June 30, 2025, the group's right-of-use assets and lease liabilities increased, primarily consisting of land use rights and non-current lease liabilities Lease Assets and Liabilities | Indicator | June 30, 2025 (RMB'million) | December 31, 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Right-of-Use Assets | 2,940 | 2,858 | +2.87% | | Land Use Rights | 2,780 | 2,737 | +1.57% | | Buildings | 160 | 121 | +32.23% | | Lease Liabilities | 1,609 | 1,512 | +6.41% | | Non-current Lease Liabilities | 1,447 | 1,386 | +4.40% | | Current Lease Liabilities | 162 | 126 | +28.57% | [TRADE, BILLS AND TARIFF ADJUSTMENT RECEIVABLES](index=47&type=section&id=TRADE%2C%20BILLS%20AND%20TARIFF%20ADJUSTMENT%20RECEIVABLES) As of June 30, 2025, total trade, bills, and tariff adjustment receivables significantly increased, mainly from unbilled tariff adjustment receivables Trade, Bills and Tariff Adjustment Receivables | Indicator | June 30, 2025 (RMB'million) | December 31, 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Trade Receivables | 881 | 587 | +49.32% | | Tariff Adjustment Receivables | 9,645 | 7,465 | +29.22% | | Bills Receivables | – | 3 | -100.00% | | **Total** | **10,526** | **8,055** | **+30.68%** | Ageing Analysis of Unbilled Receivables and Tariff Adjustment Receivables | Ageing | June 30, 2025 (RMB'million) | December 31, 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Within 1 Year | 3,341 | 3,188 | +4.80% | | 1 to 2 Years | 2,219 | 1,750 | +26.80% | | 2 to 3 Years | 1,428 | 968 | +47.52% | | Over 3 Years | 3,472 | 2,096 | +65.65% | | **Total** | **10,460** | **8,002** | **+30.72%** | - Management believes that the impairment provision for tariff adjustment receivables is adequate, with no further significant credit losses expected[201](index=201&type=chunk)[202](index=202&type=chunk) [CAPITAL AND RESERVES](index=49&type=section&id=CAPITAL%20AND%20RESERVES) The company's share capital remained stable after the share consolidation, with no changes in treasury shares or new repurchases/cancellations [Share Capital](index=49&type=section&id=Share%20Capital) As of June 30, 2025, the company's authorized and issued share capital remained stable after the 2024 share consolidation, with no new shares issued Share Capital Movement | Indicator | June 30, 2025 (million shares) | January 1, 2024 (million shares) | June 30, 2025 (RMB'million) | January 1, 2024 (RMB'million) | | :--- | :--- | :--- | :--- | :--- | | Authorized Ordinary Shares (HKD 1.00 per share) | 3,000 | 3,000 | 2,525 | 2,525 | | Issued and Fully Paid Ordinary Shares (HKD 1.00 per share) | 2,234 | 2,234 | 1,915 | 1,915 | - The share consolidation effective November 1, 2024, merged every 10 shares of HKD 0.10 par value into 1 share of HKD 1.00 par value, adjusting the total number of issued ordinary shares from approximately **22,334 million** to approximately **2,234 million**[211](index=211&type=chunk) - The company did not issue any shares during the period[211](index=211&type=chunk) [Treasury Shares](index=50&type=section&id=Treasury%20Shares) As of June 30, 2025, the company held approximately 34.5 million treasury shares, with no repurchases or cancellations during the period Treasury Share Movement | Indicator | June 30, 2025 (million shares) | January 1, 2024 (million shares) | | :--- | :--- | :--- | | Beginning Balance | 34.5 | 65.9 | | Cancellation | – | (65.9) | | Repurchase | – | 345.0 | | Share Consolidation | – | (310.5) | | **Ending Balance** | **34.5** | **34.5** | - The company did not cancel or repurchase any ordinary shares during the period[216](index=216&type=chunk)[217](index=217&type=chunk) - As of June 30, 2025, approximately **34.5 million** repurchased ordinary shares were held as treasury shares for strategic acquisitions or market resale[220](index=220&type=chunk) [PERPETUAL MEDIUM-TERM NOTES](index=52&type=section&id=PERPETUAL%20MEDIUM-TERM%20NOTES) As of June 30, 2025, the group's total perpetual medium-term notes significantly increased, with two tranches issued to diversify financing channels Perpetual Medium-Term Note Movement | Indicator | June 30, 2025 (RMB'million) | December 31, 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Beginning Balance | 10,777 | 3,494 | +208.45% | | Issuance of Perpetual Medium-Term Notes | 2,550 | 7,300 | -65.07% | | Issuance Transaction Costs | (5) | (17) | -70.59% | | Profit Attributable to Holders | 87 | 145 | -40.00% | | Distributions to Holders | (87) | (145) | -40.00% | | **Ending Balance** | **13,322** | **10,777** | **+23.62%** | - Two tranches of perpetual medium-term notes were issued during the period, with a total principal of **RMB 1,500 million** and distribution rates of **2.47%** and **2.38%** per annum, respectively[224](index=224&type=chunk)[225](index=225&type=chunk) - Through an agreement with Allianz Insurance, Jingneng Development secured **RMB 1,050 million** in private perpetual medium-term notes with a fixed distribution rate of **3.30%** per annum[226](index=226&type=chunk)[227](index=227&type=chunk) [BANK AND OTHER BORROWINGS](index=54&type=section&id=BANK%20AND%20OTHER%20BORROWINGS) As of June 30, 2025, the group's total bank and other borrowings increased, while the weighted average annual interest rate and tenure decreased Bank and Other Borrowings Movement | Indicator | June 30, 2025 (RMB'million) | December 31, 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Non-current | 50,758 | 47,936 | +5.89% | | Current | 18,784 | 20,646 | -9.02% | | **Total** | **69,542** | **68,582** | **+1.40%** | | Weighted Average Annual Interest Rate | 3.17% | 3.73% | -0.56% | | Weighted Average Annual Tenure | 5.45 years | 5.67 years | -0.22 years | [CONVERTIBLE BONDS](index=54&type=section&id=CONVERTIBLE%20BONDS) For the six months ended June 30, 2024, the three-year convertible bonds issued to an independent third party on June 29, 2021, were fully redeemed - In the first half of 2024, the three-year convertible bonds issued to an independent third party on June 29, 2021, were fully redeemed[231](index=231&type=chunk)[233](index=233&type=chunk) [ACQUISITIONS OF SUBSIDIARIES](index=55&type=section&id=ACQUISITIONS%20OF%20SUBSIDIARIES) The group's strategy is to acquire promising renewable energy projects with stable returns, with no business combinations or asset acquisitions in the current period - The group's strategy is to identify suitable investment opportunities to acquire renewable energy projects with good prospects and potential for stable returns[235](index=235&type=chunk)[240](index=240&type=chunk) - For the six months ended June 30, 2025, there were no business combinations or asset acquisitions[236](index=236&type=chunk)[241](index=241&type=chunk)[237](index=237&type=chunk)[242](index=242&type=chunk) - For the six months ended June 30, 2024, the company acquired equity interests in two companies in China from independent third parties through its subsidiaries, which were considered asset acquisitions, with a total grid-connected installed capacity of **180 MW**[238](index=238&type=chunk)[243](index=243&type=chunk)[244](index=244&type=chunk) [CASH GENERATED FROM OPERATIONS](index=58&type=section&id=CASH%20GENERATED%20FROM%20OPERATIONS) For the six months ended June 30, 2025, cash generated from operations decreased, primarily due to changes in working capital Cash Generated from Operations | Indicator | H1 2025 (RMB'million) | H1 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Profit Before Income Tax | 448 | 434 | +3.23% | | Operating Profit Before Working Capital Changes | 3,302 | 2,709 | +21.89% | | Changes in Trade, Bills and Tariff Adjustment Receivables | (2,471) | (2,098) | +17.78% | | Changes in Other Receivables, Deposits and Prepayments | 244 | (290) | N/A (from negative to positive) | | Changes in Other Payables and Accrued Expenses | (192) | 1,080 | N/A (from positive to negative) | | **Cash Generated from Operations** | **883** | **1,401** | **-37.09%** | [CAPITAL COMMITMENTS](index=58&type=section&id=CAPITAL%20COMMITMENTS) As of June 30, 2025, the group's capital commitments for property, plant, and equipment were approximately RMB 2,525 million, a decrease from year-end 2024 Capital Commitments | Indicator | June 30, 2025 (RMB'million) | December 31, 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | **Capital Commitments for Property, Plant and Equipment** | **2,525** | **3,083** | **-18.10%** | [RELATED-PARTY TRANSACTIONS](index=59&type=section&id=RELATED-PARTY%20TRANSACTIONS) The group engages in various related-party transactions with its controlling shareholder and subsidiaries, including interest expenses and administrative fees [Significant Related Party Transactions](index=59&type=section&id=Significant%20Related%20Party%20Transactions) Interest expenses paid to the controlling shareholder and its subsidiaries decreased but remained a primary related-party transaction during the period Summary of Significant Related Party Transactions | Transaction Type | H1 2025 (RMB'million) | H1 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Interest Expense to Controlling Shareholder | 29 | 195 | -85.13% | | Interest Expense to Subsidiaries of Controlling Shareholder | 155 | 185 | -16.22% | | Interest Income from Subsidiaries of Controlling Shareholder | 2 | 14 | -85.71% | | Building Management Fees to Subsidiaries of Controlling Shareholder | 2 | 3 | -33.33% | | Administrative Office Service Expenses to Subsidiaries of Controlling Shareholder | 9 | 9 | 0.00% | - Interest expenses from Beijing Energy Group loans were paid at annual interest rates ranging from **2.01% to 4.05%**[265](index=265&type=chunk) - Interest expenses from loans from Beijing Energy Group Finance Co., Ltd. and Beijing Jingneng Financial Leasing Co., Ltd. were paid at annual interest rates ranging from **2.40% to 3.20%**[265](index=265&type=chunk) [Significant with Related Party Balances](index=60&type=section&id=Significant%20with%20Related%20Party%20Balances) As of June 30, 2025, the group had substantial outstanding bank and financial institution loan balances with its controlling shareholder and subsidiaries Summary of Significant Related Party Balances | Balance Type | June 30, 2025 (RMB'million) | December 31, 2024 (RMB'million) | | :--- | :--- | :--- | | Bank Loans from Subsidiaries of Controlling Shareholder | 5,180 | 5,450 | | Bank Loans from Controlling Shareholder | 1,635 | 1,624 | | Financial Institution Loans from Subsidiaries of Controlling Shareholder | 6,851 | 7,001 | | Other Loans from Associates | 60 | 60 | [Key Management Compensation](index=60&type=section&id=Key%20Management%20Compensation) Total key management compensation increased, primarily driven by short-term employee benefits and retirement benefit plan contributions Key Management Compensation | Compensation Type | H1 2025 (RMB'million) | H1 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Short-term Employee Benefits | 2.05 | 1.62 | +26.54% | | Contributions to Retirement Benefit Plans | 0.16 | 0.05 | +220.00% | | Share-based Payment Expenses | 0.11 | 0.24 | -54.17% | | **Total** | **2.32** | **1.91** | **+21.47%** | [FAIR VALUE MEASUREMENT](index=61&type=section&id=FAIR%20VALUE%20MEASUREMENT) The group's financial instruments are measured across three fair value hierarchy levels, with sensitivity analysis performed on Level 3 instruments - Fair value measurement of financial instruments is categorized into Level 1 (quoted prices in active markets), Level 2 (observable market data), and Level 3 (unobservable inputs)[271](index=271&type=chunk)[272](index=272&type=chunk)[273](index=273&type=chunk)[275](index=275&type=chunk) - There were no significant transfers of financial assets between Level 1, Level 2, and Level 3 fair value classifications during the period[273](index=273&type=chunk)[274](index=274&type=chunk) [Financial Assets and Financial Liabilities Measured at Fair Value](index=61&type=section&id=Financial%20Assets%20and%20Financial%20Liabilities%20Measured%20at%20Fair%20Value) As of June 30, 2025, the fair values of Level 3 financial assets (unlisted investments) and financial liabilities (contingent consideration) remained stable Level 3 Financial Instrument Movement | Indicator | January 1, 2025 (RMB'million) | June 30, 2025 (RMB'million) | | :--- | :--- | :--- | | Financial Assets at Fair Value Through Profit or Loss (Unlisted Investments) | 31 | 31 | | Financial Liabilities at Fair Value Through Profit or Loss (Contingent Consideration) | (3) | (2) | [Sensitivity Analysis of Observable and Unobservable Inputs](index=63&type=section&id=Sensitivity%20Analysis%20of%20Observable%20and%20Unobservable%20Inputs) Sensitivity analysis for Level 3 financial instruments indicates that changes in discount rates and revenue growth rates impact profit or loss Sensitivity Analysis of Level 3 Financial Instruments | Instrument Type | Key Input Data | Input Data Range | Favorable/(Unfavorable) Change to P&L (June 30, 2025, RMB'million) | | :--- | :--- | :--- | :--- | | Financial Assets at Fair Value Through Profit or Loss (Unlisted Investments) | Discount Rate 5.10% | +0.5% | (0.1) | | | | –0.5% | 0.1 | | | Revenue Growth Rate 0% | +5% | 0.7 | | | | –5% | (0.5) | | Financial Liabilities at Fair Value Through Profit or Loss (Contingent Consideration) | Effective Generation Hours 2,200–2,630 | +1% | – | | | | –1% | – | | | Discount Rate 8.80% | +3% | – | | | | –3% | – | - As of June 30, 2025, the carrying amounts of all the group's financial assets and financial liabilities approximated their fair values[281](index=281&type=chunk)[284](index=284&type=chunk) [EVENTS AFTER THE DATE OF STATEMENT OF FINANCIAL POSITION](index=64&type=section&id=EVENTS%20AFTER%20THE%20DATE%20OF%20STATEMENT%20OF%20FINANCIAL%20POSITION) In July 2025, Jingneng Development entered a trust agreement to issue approximately RMB 2,000 million in asset-backed commercial papers - In July 2025, Jingneng Development entered into a trust agreement with Industrial Bank International Trust Co., Ltd. to establish a trust for the issuance of asset-backed commercial papers with a total size of approximately **RMB 2,000 million**[282](index=282&type=chunk)[285](index=285&type=chunk) [COMPARATIVE FIGURES](index=64&type=section&id=COMPARATIVE%20FIGURES) Certain comparative figures have been restated to conform with the current period's presentation - Certain comparative figures have been restated to conform with the current period's presentation[283](index=283&type=chunk)[286](index=286&type=chunk) [Other Information](index=64&type=section&id=Other%20Information) [DIRECTORS' AND CHIEF EXECUTIVES' INTERESTS IN SHARES, UNDERLYING SHARES AND DEBENTURES](index=65&type=section&id=DIRECTORS'%20AND%20CHIEF%20EXECUTIVES'%20INTERESTS%20IN%20SHARES%2C%20UNDERLYING%20SHARES%20AND%20DEBENTURES) As of June 30, 2025, some directors and key executives held long positions in the company's shares and underlying shares Directors' and Chief Executives' Long Positions in Shares and Underlying Shares | Name | Capacity/Nature of Interest | Number of Shares/Underlying Shares Held | Approximate Percentage of Issued Shares | | :--- | :--- | :--- | :--- | | Mr. Zhang Ping | Beneficial Owner | 944,000 | 0.08% | | | Share Option Related Shares | 792,000 | | | Mr. Liu Guoxi | Share Option Related Shares | 429,000 | 0.02% | | Mr. Zhu Jun | Beneficial Owner | 120,000 | 0.05% | | | Share Option Related Shares | 925,650 | | - These percentages are calculated based on **2,233,364,443** listed shares of the company issued as of June 30, 2025[298](index=298&type=chunk) - Save as disclosed, none of the directors or chief executives or their associates had any interests or short positions in the shares, underlying shares, or debentures of the company or any of its associated corporations[292](index=292&type=chunk)[295](index=295&type=chunk) [DIRECTORS' RIGHTS TO ACQUIRE SHARES OR DEBENTURES](index=66&type=section&id=DIRECTORS'%20RIGHTS%20TO%20ACQUIRE%20SHARES%20OR%20DEBENTURES) No arrangements existed during the period for directors to acquire benefits through shares or debentures, nor did they or their families hold subscription rights - At no time during the six months ended June 30, 2025, was the company, its holding company, any of its subsidiaries, or any subsidiary of its holding company a party to any arrangement to enable the directors to acquire benefits by means of the acquisition of shares or debentures of the company or any other body corporate[293](index=293&type=chunk)[296](index=296&type=chunk) - During the period, none of the directors or their spouses or children under 18 years of age had any right to subscribe for securities of the company, nor did they exercise any such rights[293](index=293&type=chunk)[296](index=296&type=chunk) [SHARE OPTION SCHEME](index=66&type=section&id=SHARE%20OPTION%20SCHEME) The company adopted a share option scheme in 2022 to incentivize talent, with a significant number of options unexercised and a remaining term of about three years - The share option scheme was adopted with shareholder approval on June 15, 2022, aiming to attract, retain, and incentivize outstanding talent of the company, and to establish a long-term incentive mechanism closely linked to the company's performance and long-term strategy[294](index=294&type=chunk)[297](index=297&type=chunk)[303](index=303&type=chunk)[304](index=304&type=chunk) Share Option Movement | Grantee | Grant Date | Unexercised as of Jan 1, 2025 (shares) | Lapsed During Period (shares) | Unexercised as of June 30, 2025 (shares) | | :--- | :--- | :--- | :--- | :--- | | Mr. Zhang Ping (Director) | June 16, 2022 | 1,584,000 | (792,000) | 792,000 | | Mr. Liu Guoxi (Director) | June 16, 2022 | 858,000 | (429,000) | 429,000 | | Mr. Zhu Jun (CEO) | June 16, 2022 | 1,851,300 | (925,650) | 925,650 | | Other Executives and Employees | June 16, 2022 | 20,511,480 | (10,396,320) | 10,115,160 | | | June 15, 2023 | 8,457,000 | (2,875,380) | 5,581,620 | | **Total** | | **33,261,780** | **(15,418,350)** | **17,843,430** | - The share option exercise price, closing price of shares before the grant date, and number of share options have been adjusted to reflect the impact of the share consolidation effective November 1, 2024[309](index=309&type=chunk) - As of the date of this interim report, **224,279,484 shares** were available for issue under the share option scheme, representing approximately **10.04%** of the company's total issued shares[310](index=310&type=chunk) - The share option scheme is valid for six years from its adoption date, with approximately **three years** remaining as of June 30, 2025[311](index=311&type=chunk)[312](index=312&type=chunk) [SUBSTANTIAL SHAREHOLDERS' INTERESTS IN SHARES, UNDERLYING SHARES AND DEBENTURES](index=71&type=section&id=SUBSTANTIAL%20SHAREHOLDERS'%20INTERESTS%20IN%20SHARES%2C%20UNDERLYING%20SHARES%20AND%20DEBENTURES) As of June 30, 2025, key shareholders held long positions in the company's shares and underlying shares, including Beijing Energy Investment Group and China Merchants Group Substantial Shareholders' Long Positions in Shares and Underlying Shares | Shareholder Name/Designation | Capacity/Nature of Interest | Total Number of Shares/Underlying Shares Held | Approximate Percentage of Issued Shares | | :--- | :--- | :--- | :--- | | Beijing Energy Investment Group (Hong Kong) Co., Limited | Beneficial Owner | 717,694,349 | 32.14% | | China Merchants Group Limited | Interest in Controlled Corporation | 339,967,529 | 15.22% | | China Merchants New Energy Group Limited | Beneficial Owner | 339,967,529 | 15.22% | | CITIC Financial Asset Management Co., Ltd. | Interest in Controlled Corporation | 263,378,793 | 11.79% | | Huaqing Photovoltaic Co., Ltd. | Beneficial Owner | 304,875,000 | 13.65% | | China State-owned Enterprise Structural Adjustment Fund Co., Ltd. | Interest in Controlled Corporation | 121,679,330 | 5.45% | | Postal Savings Bank of China Co., Ltd. | Interest in Controlled Corporation | 121,679,330 | 5.45% | | Zeng Xiangyi | Beneficial Owner | 210,736,653 | 9.44% | - These percentages are calculated based on **2,233,364,443** listed shares (including shares held as treasury shares) issued as of June 30, 2025[325](index=325&type=chunk) - Beijing Energy Investment Group (Hong Kong) Co., Limited is a direct wholly-owned subsidiary of Beijing Energy Group[325](index=325&type=chunk) - China Merchants Group Limited indirectly holds shares through its subsidiaries Snow Hill, China Merchants New Energy Group, and other investment funds[325](index=325&type=chunk) [PURCHASE, SALE OR REDEMPTION OF THE COMPANY'S LISTED SECURITIES](index=75&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 listed securities during the period, holding 34.5 million treasury shares - During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities (including the sale of treasury shares)[330](index=330&type=chunk)[332](index=332&type=chunk) - As of June 30, 2025, the company held **34,500,000** treasury shares[330](index=330&type=chunk)[332](index=332&type=chunk) [COMPLIANCE WITH THE CORPORATE GOVERNANCE CODE](index=76&type=section&id=COMPLIANCE%20WITH%20THE%20CORPORATE%20GOVERNANCE%20CODE) The company applied and complied with all applicable code provisions of the Corporate Governance Code during the period - The company applied and complied with all applicable code provisions of the Corporate Governance Code as set out in Part 2 of Appendix C1 to the Listing Rules during the period[335](index=335&type=chunk)[341](index=341&type=chunk) [COMPLIANCE WITH THE MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS](index=76&type=section&id=COMPLIANCE%20WITH%20THE%20MODEL%20CODE%20FOR%20SECURITIES%20TRANSACTIONS%20BY%20DIRECTORS) The company adopted a code for directors' securities transactions, and all directors confirmed compliance with its standards during the period - The company has adopted a code for directors' securities transactions, the terms of which are no less stringent than the required standards set out in the Model Code[336](index=336&type=chunk)[342](index=342&type=chunk) - All directors confirmed that they have complied with the required standards set out in the Model Code and the company's code throughout the period[336](index=336&type=chunk)[342](index=342&type=chunk) [CHANGES IN INFORMATION OF DIRECTORS](index=76&type=section&id=CHANGES%20IN%20INFORMATION%20OF%20DIRECTORS) Non-executive director Mr. Li Hao was re-designated as an executive director of Shougang Fushan Resources, and Mr. Wang Cheng assumed new roles at CITIC Financial Asset International - Non-executive Director Mr. Li Hao was re-designated from a non-executive director to an executive director of Shougang Fushan Resources Limited (stock code: 697), effective June 18, 2025[337](index=337&type=chunk)[343](index=343&type=chunk) - Non-executive Director Mr. Wang Cheng currently serves as Deputy Party Secretary (presiding over Party affairs) and General Manager (acting as executive director) of CITIC Financial Asset International Holdings Limited, a subsidiary of CITIC Financial Asset Management Co., Ltd., a substantial shareholder of the company[338](index=338&type=chunk)[343](index=343&type=chu