香 港 交易 及 結 算 所 有限 公 司 及 香港 聯 合 交 易 所有 限 公 司 對 本公 告 之 內 容概 不 負 責， 對 其 準 確 性或 完 整 性 亦不 發 表 任 何 聲明 ， 並 明 確 表示 概 不 就 因本 公 告 全部 或 任 何 部 份內 容 而 產 生或 因 倚 賴 該 等內 容 而 引 致 之任 何 損 失 承擔 任何責任。 洪 橋 集 團 有 限 公 司 （ 於開曼群島註冊成立之有限公司） （股份代號：8137） 二零二四年年報之補充公告 茲 提 述本 公 司 於 二 零二 五 年 四 月八 日 刊 發 之 截至 二 零 二 四 年十 二 月 三 十一 日 止 年 度 之 年 報（「二 零 二 四 年 年 報」）。 除 另 有 指 明 者 外 ， 本 公 告 所 用 詞 彙 與 二 零二 四 年 年 報 所界 定 者 具 有相 同 涵 義 。 本公 告 為 二 零 二四 年 年 報 提供 補充資料，其應與二零二四年年報一併閱讀。 購股權計劃之進一步詳情 茲 提 述 二 零 二 四 年 年 報 第 39 頁 所 載「 購 股 權 計 劃 」一 段 。 董 事 會 謹 此 按 照 ...

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 的 內 容 概 不 負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部 或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 上述額外資料並不影響二零二四年年報所載之其他資料，且除上文所披露者外， 二零二四年年報內所有其他資料均維持不變。 承董事會命 China Vered Financial Holding Corporation Limited 中 薇 金 融 控 股 有 限 公 司 （於香港註冊成立之有限公司） （股份代號：245） 有關截至二零二四年十二月三十一日止年度 年報之補充公告 茲提述中薇金融控股有限公司（「本公司」）截至二零二四年十二月三十一日止年度 之年報（「二零二四年年報」）。除另有指明者外，本公告所用詞彙與二零二四年年 報所界定者具有相同涵義。 除二零二四年年報所提供資料外，本公司謹此根據上市規則第17.07 (3)條提供以下 有關股份獎勵計劃的補充資料。 本公司謹此澄清，於報告期內，根據股份獎勵計劃，既無實際發行新股，亦無潛 在發行新股 ...

Financial Performance - Revenue for the six months ended June 30, 2025, was US$107,162,000, a decrease of 9.4% from US$118,510,000 in the same period of 2024[5] - Gross profit increased to US$40,576,000, up 9.9% from US$37,107,000 year-on-year[5] - Profit before tax rose to US$16,742,000, compared to US$10,329,000 in the previous year, reflecting a 62.5% increase[5] - Profit for the period attributable to owners of the Company was US$15,218,000, significantly up from US$7,660,000, marking a 98.5% increase[5] - Basic earnings per share attributable to owners of the Company increased to US$3.00 cents from US$1.51 cents, representing a 98.7% rise[5] - Sales revenue for the Group amounted to US$107,162,000, representing a decrease of 9.6% compared to the corresponding period[79] - Gross profit for the Group was US$40,576,000, representing a 9.3% increase compared to the previous period, with a gross profit margin of 37.9%[89] - Other income decreased by 9.9% due to a combination of increased government grants and decreased bank interest income[94] - The Group recorded a net gain of US$8.4 million in other gains and losses, a significant improvement from a net loss of approximately US$0.6 million in the previous period[96] - Selling and distribution costs were US$15,180,000, a decrease of 3.4%, but as a percentage of revenue, they increased from 13.3% to 14.2%[98] - Administrative expenses increased by 7.5% to US$15,980,000, with the percentage of revenue rising from 12.5% to 14.9%[103] - Income tax for the Group increased to US$1,478,000 compared to the previous period[106] - Net profit for the period, including profit attributable to non-controlling interests, was US$15,264,000[107] - Profit attributable to owners of the Company was US$15,218,000 during the period[108] Market Performance - The Group's international lighting business remained the core business, contributing the majority of revenue despite a challenging economic environment[8] - In the first half of 2025, Japan's domestic demand for LED lighting products remained stable compared to the same period in 2024, with overall sales in the Japanese market increasing year-on-year due to the introduction of new customers[19][23] - North America saw sales exceed expectations in the first half of 2025, driven by the normalization of retail prices and new product launches, while domestic sales lagged[18] - The UK market is currently facing a lack of confidence, with the new government's short-term measures showing no significant impact on the economy[20][24] - D&H, a subsidiary, experienced strong growth in its order book during the first half of 2025, although delivery timing may affect sales targets[28] - NVC Nordics recorded growth in both sales and margins in 2024, with expectations for stronger results in the second half of 2025 due to new product launches[29][31] - The overall sales performance in the first half of 2025 was supported by strong trends observed in Sweden, contributing to a robust market position in the Nordics[22][29] - The Vietnam market underperformed expectations due to project delays and rising costs from customized solutions for small orders[34] - The UK and Nordic markets are expected to see improved sales performance in the second half of the year due to changes in the sales team and strong order books[54] - The Group aims to strengthen its business in the Middle East and Southeast Asia markets while promoting cost-effective and intelligent products[45] Strategic Initiatives - The Group adjusted its procurement strategy to reduce costs through supplier selection, bidding, and price negotiations, enhancing product competitiveness[7] - New product designs and launches are part of the Group's strategy to enhance competitiveness in pricing and functionality[10] - The Company is focusing on localizing production in Vietnam to address tariff-related challenges and improve production capacity[15] - The company implemented a dual-channel business strategy focusing on Flow Channels and Project Channels, which has shown promising results in the first half of 2025[32][36] - The company is advancing its brand upgrade for its lighting sub-brand, with plans for an official relaunch in the second half of 2025[35] - The Group plans to launch approximately ten highly anticipated ETI-branded products with excellent specifications and a high cost-performance ratio in the second half of 2025[47] - The Group will focus on online sales of new products, expanding e-commerce presence on platforms like Amazon and Rakuten[53] - In Vietnam, the focus will shift from low-volume customized projects to standardized solutions through Flow Projects[55] - The Group will continue to enhance brand visibility through participation in major exhibitions and hosting customer seminars[56] - The Group plans to expand sales channels and strengthen online sales in Japan, focusing on both proprietary brand business and new customer development[58] - The Group aims to enhance brand awareness and unlock new business opportunities through strategic upgrades of key brand assets in the second half of 2025[61] - The Group will focus on product research and development to improve cost performance and expand the application of core patented technologies[62] - The Group will implement procurement cost control measures, including annual bidding and special cost reduction projects, to enhance product cost competitiveness[63] Operational Insights - Current assets totaled US$262,121,000, while current liabilities amounted to US$82,136,000, resulting in net current assets of US$179,985,000[124] - The current ratio improved from 3.02 to 3.19 as of June 30, 2025[125] - Capital expenditure during the period was US$3,682,000, primarily for property, plant, and equipment[131] - Cash and cash equivalents at the end of the period were US$104,613,000, reflecting an increase from US$93,928,000 at the beginning of the period[120] - Net cash flows from operating activities were US$4,541,000, compared to a negative cash flow of US$267,000 in the previous period[120] - Total debt as of June 30, 2025, was US$13,722,000, significantly up from US$2,603,000 at the end of 2024[129] - Capital commitments for the purchase of property, plant, and equipment were US$387,000 as of June 30, 2025[133] - The carrying amounts of the Group's assets pledged for borrowings include property, plant, and equipment valued at $6,057,000 and trade receivables valued at $5,863,000 as of June 30, 2025[146] - The Group has no significant liquidity risk, having reviewed working capital and capital expenditure requirements[150] - The Group entered into insurance contracts covering 90% of uncollectible receivables from international sales, with a maximum compensation amount of $20,000,000 for the period from July 1, 2025, to June 30, 2026[156] Human Resources - The Group had approximately 1,901 employees as of June 30, 2025, a decrease from 2,163 employees as of December 31, 2024[162] - Ms. CHAN Kim Yung, Eva resigned as CEO effective April 1, 2025, and the company is currently searching for a new CEO[188] - Mr. WANG Donglei assumed CEO responsibilities temporarily after the resignation of the previous CEO[189] - The company ensured effective communication with shareholders during the AGM held on June 13, 2025, despite the chairman's absence[190] - The company has established an audit and risk control department to monitor and assess internal risks and control systems[196] Corporate Governance - The company has adopted the CG Code as its own code of corporate governance and has generally complied with its principles, except for provisions C.2.1 and F.1.3[187] - The Audit Committee consists of three independent non-executive Directors and has reviewed the interim results for the period under review[197] - The Board oversees the effectiveness of the internal control system, including resources, staff qualifications, and training programs[196] - The Company established a Remuneration Committee in compliance with the Listing Rules[200] - The primary duties of the Remuneration Committee include reviewing and making recommendations on remuneration packages for executive Directors and senior management[200] - The Remuneration Committee consists of one executive Director and two independent non-executive Directors[200] - Mr. LEE Kong Wai, Conway serves as the chairman of the Remuneration Committee[200] - The Committee ensures transparent procedures for developing remuneration policies to prevent conflicts of interest[200] Shareholder Information - The company has a total of 507,273,677 issued shares as of June 30, 2025[170] - Director YE Yong holds 27,403,900 ordinary shares, representing 5.40% of the total issued shares[167] - Elec-Tech International (H.K.) Company Limited is a substantial shareholder with 74,034,600 ordinary shares, accounting for 14.59% of the total issued shares[173] - Rising Wealth Limited holds 63,840,000 ordinary shares, which is 12.58% of the total issued shares[173] - Harbour Faith Enterprises Limited has 41,491,100 ordinary shares, representing 8.18% of the total issued shares[173] - Veritas Holdings Limited and AEGEAN Anstalt each control 151,412,677 ordinary shares, making up 29.85% of the total issued shares[173] - Canopy Capital Limited owns 84,545,613 ordinary shares, which is 16.67% of the total issued shares[173] - Gold Interact Investment Limited holds 66,867,064 ordinary shares, representing 13.18% of the total issued shares[173] - During the review period, the company did not purchase, sell, or redeem any listed securities[180] - The company had no controlling shareholders during the review period[183] - There were no purchases, sales, or redemptions of the company's listed securities during the review period, and as of June 30, 2025, the company held no treasury shares[184] - The company did not issue any equity securities or sell treasury shares for cash during the review period[185]

川控股有限公司 中期報告 2025 目錄 | 公司資料 | 2 | | --- | --- | | 簡明綜合全面收益表 | 4 | | 簡明綜合財務狀況表 | 5 | | 簡明綜合權益變動表 | 7 | | 簡明綜合現金流量表 | 8 | | 未經審核簡明綜合中期財務報表附註 | 9 | | 管理層討論與分析 | 27 | | 其他資料及企業管治 | 39 | 提名委員會 彭耀傑先生 （主席） 王雪芬女士（於2025年6月26日獲委任） 黃獻英先生（於2025年6月26日獲委任） 黃家寶先生 許風雷先生 1 董事 執行董事 林桂廷先生 （行政總裁） 彭耀傑先生 （主席） Bijay Joseph先生 王雪芬女士 （首席財務官） 獨立非執行董事 黃獻英先生 黃家寶先生 許風雷先生 審核委員會 黃家寶先生 （主席） 黃獻英先生 許風雷先生 薪酬委員會 許風雷先生 （主席） 林桂廷先生 黃家寶先生 公司秘書 何啟德先生 授權代表 林桂廷先生 何啟德先生 核數師 安永會計師事務所 執業會計師 One Raffles Quay, North Tower Level 18, Singapore 048583 註冊辦事處 ...

目錄 | 公司資料 | 2 | | --- | --- | | 簡明綜合損益表 | 4 | | 簡明綜合損益及其他全面收益表 | 5 | | 簡明綜合財務狀況表 | 6 | | 簡明綜合權益變動表 | 7 | | 簡明綜合現金流量表 | 8 | | 簡明綜合中期財務報表附註 | 9 | | 管理層討論與分析 | 19 | | 披露權益 | 27 | | 其他資料 | 34 | 公司資料 董事會 執行董事 江陳鋒先生 （主席） 張秀華女士 韓林先生 非執行董事 林倩如女士 獨立非執行董事 林俊才先生 崔士威先生 鄒耀明先生 執行委員會 3rd Floor, Century Yard Cricket Square P.O. Box 902 Grand Cayman, KY1-1103 Cayman Islands 總辦事處及中國主要營業地點 中國 上海市 浦東新區 世紀大道1500號 東方大廈 9樓901室 郵編200122 江陳鋒先生 （主席） 張秀華女士 韓林先生 審核委員會 鄒耀明先生 （主席） 崔士威先生 林俊才先生 薪酬委員會 崔士威先生 （主席） 林俊才先生 鄒耀明先生 提名委員會 江陳鋒先生 （主席 ...

2025 中期報告 INTERIM REPORT 2025 2025 Interim Report 中期報告 120915 本產品採用FSCTM認證的和其他受控來源的材料。 © 版權 中國三江精細化工有限公司。本公司保留一切版權。 目錄 管理層討論及分析 未經審核綜合業績 簡明綜合損益表 簡明綜合全面收益表 簡明綜合財務狀況報表 簡明綜合現金流量表 簡明綜合權益變動表 簡明綜合財務資料附註 其他資料 公司資料 2 6 7 8 10 11 12 24 30 管理層討論及分析 於回顧期內，中華人民共和國（「中國」）的石油及化工行業（「本行業」）繼續面對波動和複雜的經營環境，主要 受到商品價格波動、貿易政策朝令夕改及全球地緣政治走勢所左右。雖然挑戰重重，中國三江精細化工有限 公司（「本公司」）及其附屬公司（統稱「本集團」）的盈利能力仍然取得明顯改善；與2024年同期相比，本公司權 益持有人應佔純利增長約95.5%至人民幣301.1百萬元。成績驕人，主要受若干主要產品（尤其是乙二醇（「乙二 醇」）的市場利好走勢及本集團的營運策略靈活多變相互結合而成，受到聚酯業下游需求持續，使乙二醇的平 均售價（「平均售價」）及毛利率 ...

[Interim Board Report 2025](index=3&type=section&id=%E4%BA%8C%E9%9B%B6%E4%BA%94%E4%BA%94%E5%B9%B4%E4%B8%AD%E6%9C%9F%E8%91%A3%E4%BA%8B%E6%9C%83%E5%A0%B1%E5%91%8A%E6%9B%B8) [Report Introduction](index=3&type=section&id=Introduction) The company's board announces unaudited operating results for the six months ended June 30, 2025, reviewed by Shinewing Certified Public Accountants, with all monetary figures in RMB - The company released its unaudited operating results for the six months ended June 30, 2025, reviewed by **Shinewing Certified Public Accountants**[3](index=3&type=chunk) - All monetary figures in the report are in **RMB**, unless otherwise specified[4](index=4&type=chunk) [Industry Development and Business Review](index=3&type=section&id=%E8%A1%8C%E6%A5%AD%E7%99%BC%E5%B1%95%E8%88%87%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A0%A7) China's economy grew steadily in H1 2025, with the power industry operating safely and transitioning to green energy, leading to significant year-on-year increases in the company's revenue, profit, and contract value - In the first half of 2025, China's economy operated steadily and improved, with the power industry maintaining safe and stable operations and continuing its green and low-carbon transformation[5](index=5&type=chunk) - National newly installed power generation capacity reached **293.32 million kilowatts**, a year-on-year increase of **140.56 million kilowatts**, with wind and solar power accounting for **89.9%** of the total new capacity[5](index=5&type=chunk) - As of June 30, 2025, the national total installed power generation capacity was **3.65 billion kilowatts**, including **1.47 billion kilowatts** of thermal power, **440 million kilowatts** of hydropower, **60.91 million kilowatts** of nuclear power, **573 million kilowatts** of grid-connected wind power, and **1.1 billion kilowatts** of grid-connected solar power[5](index=5&type=chunk) - In the first half of 2025, the company's operating revenue, profit, and formal contract signing value all significantly increased year-on-year, demonstrating stable and progressive business development[6](index=6&type=chunk) [Operating Performance](index=4&type=section&id=%E7%B6%93%E7%87%9F%E6%A5%AD%E7%B8%BE) For the six months ended June 30, 2025, the company's operating revenue grew by 31.86% to 22.47 billion yuan, net profit attributable to parent company owners increased by 101.06% to 1.05 billion yuan, with earnings per share of 0.47 yuan Key Financial Data for H1 2025 | Metric | H1 2025 (Billion Yuan) | Year-on-Year Growth | | :--- | :--- | :--- | | Operating Revenue | 22.47 | 31.86% | | Net Profit Attributable to Parent Company Owners | 1.05 | 101.06% | | Earnings Per Share | 0.47 yuan | Increased by 0.24 yuan | | Total Equity Attributable to Parent Company Owners (Period-end) | 16.12 | Increased by 639.94 million yuan (vs. year-start) | | Net Asset Value Per Share (Period-end) | 7.21 yuan | Increased by 0.29 yuan (vs. year-start) | [Order Status](index=5&type=section&id=%E8%A8%82%E5%96%AE%E6%83%85%E6%B3%81) As of June 30, 2025, the company's formal contract signing value increased by 36.64% to 35.56 billion yuan, with export orders surging by 945.25% to 11.87 billion yuan, mainly due to a large EPC project in Saudi Arabia - Formal contract signing value: **35.56 billion yuan**, a year-on-year increase of **36.64%**[8](index=8&type=chunk) - New power equipment contract value: **19.19 billion yuan**, a year-on-year decrease of **1.39%** (including **4.17% growth** in coal power equipment, **34.26% growth** in hydropower equipment, and **71.64% decrease** in nuclear power equipment)[8](index=8&type=chunk) - Engineering, Procurement, and Construction (EPC) and trade contract value: **10.48 billion yuan**, a year-on-year increase of **3,618.09%**, primarily due to the activation of a large EPC project in Saudi Arabia[8](index=8&type=chunk) - Export orders: **11.87 billion yuan**, a year-on-year increase of **945.25%**[8](index=8&type=chunk) [Product Output](index=6&type=section&id=%E7%94%A2%E5%93%81%E7%94%A2%E9%87%8F) In H1 2025, the company's total power generation equipment output increased by 39.05% to 20.12 million kilowatts, with significant growth in steam turbine generator output but a decline in power station boiler output - Total power generation equipment output: **20.12 million kilowatts**, a year-on-year increase of **39.05%**[9](index=9&type=chunk) - Hydro turbine generator sets: **4.64 million kilowatts**, a year-on-year increase of **13.45%**[9](index=9&type=chunk) - Steam turbine generators: **15.48 million kilowatts**, a year-on-year increase of **49.13%**[9](index=9&type=chunk) - Power station boilers: **1.30 million kilowatts**, a year-on-year decrease of **58.20%**[9](index=9&type=chunk) [Operating Revenue and Costs](index=6&type=section&id=%E7%B6%93%E7%87%9F%E6%94%B6%E5%85%A5%E5%8F%8A%E6%88%90%E6%9C%AC) In H1 2025, the company's operating revenue reached 22.47 billion yuan, a 31.86% year-on-year increase, with new power equipment revenue growing by 50.54%; export revenue accounted for 17.83% of total revenue, mainly from Asia, while operating costs increased by 30.82% - Operating revenue: **22.47 billion yuan**, a year-on-year increase of **31.86%**[10](index=10&type=chunk) - New power equipment revenue: **14.46 billion yuan**, a year-on-year increase of **50.54%** (including **61.87% growth** in coal power equipment, **23.57% growth** in hydropower equipment, and **68.68% growth** in nuclear power equipment)[10](index=10&type=chunk) - Green and low-carbon driven equipment revenue: **170.76 million yuan**, a year-on-year decrease of **65.87%**[10](index=10&type=chunk) - Export revenue: **4.01 billion yuan**, accounting for **17.83%** of operating revenue, primarily from Asia (accounting for **92.36%** of export revenue)[11](index=11&type=chunk) - Operating costs: **19.77 billion yuan**, a year-on-year increase of **30.82%**[12](index=12&type=chunk) [Gross Profit and Gross Profit Margin](index=7&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) In H1 2025, the company's gross profit increased by 40.03% to 2.71 billion yuan, with the gross profit margin rising by 0.70 percentage points to 12.05%, driven by higher margins in nuclear and hydropower products, while EPC and trade gross profit margin significantly declined due to project losses - Gross profit: **2.71 billion yuan**, a year-on-year increase of **40.03%**[13](index=13&type=chunk) - Gross profit margin: **12.05%**, an increase of **0.70 percentage points** year-on-year[13](index=13&type=chunk) - New power equipment gross profit margin: **16.84%**, an increase of **7.08 percentage points** year-on-year, primarily due to improved gross profit margins for nuclear and hydropower products[13](index=13&type=chunk)[14](index=14&type=chunk) - EPC and trade gross profit margin: **-9.20%**, a year-on-year decrease of **13.48 percentage points**, mainly due to losses incurred from delays in individual projects[13](index=13&type=chunk) [Period Expenses](index=8&type=section&id=%E6%9C%9F%E9%96%93%E8%B2%BB%E7%94%A8) Total period expenses in H1 2025 amounted to 1.58 billion yuan, an increase of 117.68 million yuan year-on-year, with higher administrative and R&D expenses, and slight reductions in selling and financial expenses - Total period expenses: **1.58 billion yuan**, a year-on-year increase of **117.68 million yuan**[15](index=15&type=chunk) - Administrative expenses: **758.39 million yuan**, a year-on-year increase of **99.94 million yuan**[15](index=15&type=chunk) - Research and development expenses: **432.06 million yuan**, a year-on-year increase of **18.82 million yuan**[15](index=15&type=chunk) [Assets and Liabilities](index=8&type=section&id=%E8%B3%87%E7%94%A2%E8%88%87%E8%B2%A0%E5%82%B5) As of June 30, 2025, total assets were 80.41 billion yuan, up 11.76% year-on-year; total liabilities were 63.59 billion yuan, up 14.05%, mainly due to increases in notes payable, accounts payable, and contract liabilities, resulting in a debt-to-asset ratio of 79.08%, a 0.49 percentage point decrease from the prior year - Total assets: **80.41 billion yuan**, an increase of **8.46 billion yuan** from the beginning of the period, representing an **11.76%** growth[16](index=16&type=chunk) - Total liabilities: **63.59 billion yuan**, an increase of **7.83 billion yuan** from the beginning of the period, representing a **14.05%** growth, primarily due to business expansion and increases in notes payable, accounts payable, and contract liabilities[16](index=16&type=chunk) - Debt-to-asset ratio: **79.08%**, a decrease of **0.49 percentage points** compared to the same period last year[16](index=16&type=chunk) [Capital and Debt Ratios](index=9&type=section&id=%E8%B3%87%E6%9C%AC%E8%88%87%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) As of June 30, 2025, the company's capital gearing ratio (non-current liabilities to total shareholders' equity) was 0.13:1, a decrease from 0.16:1 at the beginning of the period - Capital gearing ratio (non-current liabilities to total shareholders' equity): **0.13:1**, compared to **0.16:1** at the beginning of the period[17](index=17&type=chunk) [Cash and Cash Flows](index=9&type=section&id=%E8%B2%A8%E5%B9%A3%E8%B3%87%E9%87%91%E5%8F%8A%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F) As of June 30, 2025, the company's cash and cash equivalents increased by 11.62% to 17.91 billion yuan, with a significant increase in net cash flow from operating activities due to enhanced collection efforts - Cash and cash equivalents: **17.91 billion yuan**, an increase of **1.86 billion yuan** from the beginning of the period, representing an **11.62%** increase[18](index=18&type=chunk) - Net cash flow from operating activities: **3.19 billion yuan**, a significant increase compared to the same period last year, primarily due to the company's intensified efforts in collecting payments[18](index=18&type=chunk) - Net cash flow from investing activities: **-1.05 billion yuan**[18](index=18&type=chunk) - Net cash flow from financing activities: **-398.95 million yuan**[18](index=18&type=chunk) [Funding Sources and Borrowings](index=9&type=section&id=%E8%B3%87%E9%87%91%E4%BE%86%E6%BA%90%E5%8F%8A%E5%80%9F%E6%AC%BE%E6%83%85%E6%B3%81) The company's working capital primarily comes from shareholder funds, customer payments, bank loans, and entrusted loans from state appropriations; as of June 30, 2025, total borrowings were 5.01 billion yuan, with 4.36 billion yuan due within one year, and contract liabilities amounted to 29.06 billion yuan - Funding sources for operations and development: **shareholder funds, customer payments, bank loans, and entrusted loans from state appropriations**[19](index=19&type=chunk) - Total borrowings: **5.01 billion yuan**[19](index=19&type=chunk) - Borrowings repayable within one year: **4.36 billion yuan**, a decrease of **496.77 million yuan** from the beginning of the period[19](index=19&type=chunk) - Contract liabilities: **29.06 billion yuan**, an increase of **2.57 billion yuan** from the beginning of the period[19](index=19&type=chunk) [Major Investments and Subsidiary Changes](index=10&type=section&id=%E6%8C%81%E6%9C%89%E7%9A%84%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E9%97%9C%E6%96%BC%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E9%87%8D%E8%A6%81%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%EF%BC%8C%E4%BB%A5%E5%8F%8A%E6%9C%AA%E4%BE%86%E4%BD%9C%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E6%88%96%E8%B3%BC%E5%85%A5%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E8%A8%88%E5%8A%83) In H1 2025, the company completed 478.31 million yuan in fixed asset investments for nuclear power, pumped-storage, and technical upgrade projects, and increased capital in Dongzhuang Company, resulting in a 9.58% reduction in its equity holding - Completed fixed asset investments of **478.31 million yuan**, primarily for nuclear power industry layout capacity assurance projects, pumped-storage capacity enhancement projects, and technical renovation investments to maintain normal production operations of subsidiaries[20](index=20&type=chunk) - Entered into capital increase agreements with Jiadian Co., Ltd. and Dongzhuang Company, with the company agreeing to inject **RMB 140 million** into Dongzhuang Company, resulting in a **9.58% reduction** in the company's equity holding in Dongzhuang Company after the capital increase[20](index=20&type=chunk) - No other major investments were held during the period, nor were there any significant acquisitions or disposals of subsidiaries, or plans for other major investments or capital asset purchases approved[20](index=20&type=chunk) [Exchange Rate Fluctuation Risk and Hedging](index=10&type=section&id=%E5%BD%99%E7%8E%87%E6%B3%A2%E5%8B%95%E9%A2%A8%E9%9A%AA%E5%8F%8A%E7%9B%B8%E9%97%9C%E5%B0%8D%E6%96%9D) The company faces exchange rate risks from export and foreign currency settlement businesses, with foreign currency deposits totaling approximately 543.11 million yuan as of June 30, 2025, and has entered into forward foreign exchange contracts to mitigate these risks - The company's export and foreign currency-settled businesses, as well as its foreign currency deposits, are exposed to **exchange rate risks**[21](index=21&type=chunk) - As of June 30, 2025, the company's foreign currency deposits amounted to approximately **543.11 million yuan** in RMB equivalent[21](index=21&type=chunk) - To effectively control exchange rate fluctuation risks in the foreign exchange market, the company has signed **forward foreign exchange contracts** with banks for a portion of future foreign currency receivables from overseas projects[21](index=21&type=chunk) [Use of Raised Funds](index=11&type=section&id=%E5%8B%9F%E9%9B%86%E8%B3%87%E9%87%91%E9%81%8B%E7%94%A8) The 500 million yuan raised in 2023 for working capital was fully utilized by June 30, 2025, completing the planned use of all 2023 raised funds - The **RMB 500 million** of funds raised in 2023 for supplementing working capital was fully utilized as planned by June 30, 2025[22](index=22&type=chunk)[23](index=23&type=chunk) - All funds raised in 2023 have been fully utilized according to their planned purposes and schedule[22](index=22&type=chunk)[23](index=23&type=chunk) - The company had no new fundraising activities during the reporting period[23](index=23&type=chunk) [Tax Policies](index=12&type=section&id=%E7%A8%85%E6%94%B6%E6%94%BF%E7%AD%96) The company and several subsidiaries are recognized as high-tech enterprises, enjoying a 15% corporate income tax preferential rate, with export product tax refund rates primarily at 13%, and benefit from full refund policies for VAT input tax credits Main Tax Types and Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Based on sales of goods and taxable services calculated as per tax laws, after deducting deductible input VAT for the current period, the difference is the VAT payable | 3%, 6%, 9%, 10%, 13% | | Urban Maintenance and Construction Tax | Actual amount of turnover tax paid | 7% | | Corporate Income Tax | Taxable income | 15%, 25% | - Harbin Electric Company Limited and several subsidiaries have been re-certified as high-tech enterprises, applying a **15% income tax rate**[216](index=216&type=chunk)[217](index=217&type=chunk) - Harbin Electric International Engineering Co., Ltd. has been designated a technologically advanced service enterprise, applying a **15% income tax rate**[217](index=217&type=chunk) - Some advanced manufacturing enterprises enjoy a **5% preferential policy for VAT input tax credit deduction**[219](index=219&type=chunk) [Technological Innovation](index=13&type=section&id=%E7%A7%91%E6%8A%80%E5%89%B5%E6%96%B0) The company prioritizes technological innovation, increasing R&D investment by 62.87% in H1 2025 to 4.41% of revenue, achieving significant breakthroughs in gas turbines, hydro turbines, nuclear power upgrades, waste incineration boilers, and energy storage power stations - The company insists on placing **technological innovation at the core** of its overall development, driving industrial innovation through technology to accelerate the development of new quality productive forces[25](index=25&type=chunk) - R&D investment in the first half increased by **62.87%** year-on-year, with R&D intensity reaching **4.41%**, and **12 provincial and ministerial-level scientific and technological awards** were received[25](index=25&type=chunk) - The domestically developed first **16-megawatt gas turbine prototype (HGT16)** successfully achieved first ignition and full-load operation[26](index=26&type=chunk) - The world's first **500-megawatt impulse hydro turbine runner** with the largest single unit capacity and largest size of **6.23 meters**, independently developed, was successfully shipped[26](index=26&type=chunk) - The "Energy Storage No. 1" project, the world's first **300-megawatt-class compressed air energy storage power station** in Yingcheng, Hubei, in which the company participated, successfully achieved full-capacity grid connection for power generation[26](index=26&type=chunk) [Employees, Remuneration, Share Option Scheme, and Training](index=14&type=section&id=%E5%93%A1%E5%B7%A5%E3%80%81%E9%85%AC%E9%87%91%E3%80%81%E8%AA%8D%E8%82%A1%E6%9C%9F%E6%AC%8A%E8%A8%88%E5%8A%83%E8%88%87%E5%9F%B9%E8%A8%93) As of June 30, 2025, the company had 11,143 employees with total remuneration of 1.03 billion yuan, is implementing the third batch of its 2023 share appreciation rights incentive plan, and conducted 1,298 training sessions for 33,056 participants in H1 - As of June 30, 2025, the company had **11,143 active employees**, with total remuneration of **1.03 billion yuan**[27](index=27&type=chunk) - The company's 2023 annual performance has met the performance targets for the third exercise period of the share appreciation rights, and the company is organizing eligible participants to exercise their rights for the third batch[27](index=27&type=chunk) - In the first half of 2025, the company organized a total of **1,298 training sessions**, training **33,056 participants**[29](index=29&type=chunk) [Interim Dividend](index=15&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[30](index=30&type=chunk) [Outlook](index=15&type=section&id=%E5%B1%95%E6%9C%9B) National new power generation capacity is projected to exceed 500 million kilowatts in 2025, with new energy accounting for approximately 400 million kilowatts; the company plans to focus on national strategies, high-quality manufacturing development, efficiency improvements, profitability, market share, and continuous R&D investment in H2 - According to the China Electricity Council's forecast, national newly installed power generation capacity is expected to exceed **500 million kilowatts** in 2025, setting a new historical record, with new energy installed capacity reaching approximately **400 million kilowatts**[31](index=31&type=chunk) - By the end of 2025, national installed power generation capacity is projected to reach approximately **3.9 billion kilowatts**, a year-on-year increase of about **16.5%**, with non-fossil energy installed capacity at approximately **2.4 billion kilowatts**, accounting for about **61%** of the total installed capacity[31](index=31&type=chunk) - In the second half of 2025, the company will continue to focus on serving national strategies to promote high-quality manufacturing development, adhere to efficiency and effectiveness as its core to strengthen the foundation for high-quality development, continuously deepen quality and efficiency improvements, and steadily enhance corporate profitability and cost competitiveness[32](index=32&type=chunk) - The company will persist in fostering new quality productive forces through technological innovation, comprehensively enhance the overall effectiveness of its innovation system, continuously increase funding, and advance breakthroughs in key core technologies[32](index=32&type=chunk) [Major Shareholders' Equity Interests](index=17&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E8%82%A1%E6%9C%AC%E6%AC%8A%E7%9B%8A) As of June 30, 2025, the company's total share capital was 2,236,276,000 shares, with Harbin Electric Group Co., Ltd. holding 1,560,705,000 state-owned legal person shares, representing 69.79% of the total share capital - As of June 30, 2025, the company's total share capital was **2,236,276,000 shares**[33](index=33&type=chunk) - Harbin Electric Group Co., Ltd. held **1,560,705,000 state-owned legal person shares**, representing **100%** of the relevant class of shares and **69.79%** of the total share capital[33](index=33&type=chunk) [Equity Interests of Directors, Supervisors, and Senior Management](index=18&type=section&id=%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%A3%E4%BA%8B%E5%8F%8A%E9%AB%98%E7%B4%9A%E7%AE%A1%E7%90%86%E4%BA%BA%E5%93%A1%E4%B9%8B%E8%82%A1%E6%9C%AC%E6%AC%8A%E7%9B%8A) As of June 30, 2025, none of the company's directors, supervisors, senior management, or their associates held any interests or short positions in the shares of the company or its associated corporations - As of June 30, 2025, none of the company's directors, supervisors, senior management, or their associates held any interests or short positions in the shares of the company or its associated corporations[34](index=34&type=chunk) [Compliance with the Model Code](index=18&type=section&id=%E9%81%B5%E5%AE%88%E3%80%8A%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87%E3%80%8B) For the six months ended June 30, 2025, the company's directors complied with the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules - For the six months ended June 30, 2025, the company adopted the Model Code for Securities Transactions by Directors of Listed Issuers in Appendix C3 of the Listing Rules as the standard for its directors' securities transactions, and inquiries confirmed that all directors complied with the code's provisions during the period[35](index=35&type=chunk) [Purchase, Sale, or Redemption of the Company's Listed Securities](index=18&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B9%8B%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) For the six months ended June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities - For the six months ended June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities[36](index=36&type=chunk) [Contingent Liabilities](index=18&type=section&id=%E6%88%96%E6%9C%89%E8%B2%A0%E5%82%B5) As of June 30, 2025, the company's total guarantees to subsidiaries and among subsidiaries amounted to 303 million yuan, with no external guarantees - As of June 30, 2025, the company's total guarantees to its subsidiaries and among its subsidiaries amounted to **303 million yuan**[37](index=37&type=chunk) - There were no external guarantees provided by the company[37](index=37&type=chunk) [Asset Pledges](index=18&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the company had 289.84 million yuan in pledged assets for working capital loans, a significant increase compared to the same period in 2024 - As of June 30, 2025, the company had **289.84 million yuan** in pledged assets for working capital loans[38](index=38&type=chunk) - As of June 30, 2024, this figure was **84.88 million yuan**, indicating a significant increase in pledged assets[38](index=38&type=chunk) [Compliance with the Corporate Governance Code](index=19&type=section&id=%E9%81%B5%E5%AE%88%E3%80%8A%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87%E3%80%8B) For the six months ended June 30, 2025, the company complied with the Corporate Governance Code in Appendix C1 of the Listing Rules, despite multiple board member changes during the period, which were subsequently rectified to meet company articles - For the six months ended June 30, 2025, the company complied with the provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules[39](index=39&type=chunk) - The Board of Directors experienced multiple changes in membership during the reporting period, including the resignation and new appointment of independent non-executive directors, as well as changes in executive director and chairman positions[39](index=39&type=chunk)[40](index=40&type=chunk) - The number of board members temporarily fell below the minimum required by the company's Articles of Association during the changes but was subsequently replenished[40](index=40&type=chunk) [Audit Committee](index=20&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The company's Audit Committee has reviewed and approved the interim results report for the six months ended June 30, 2025 - The company's Audit Committee has reviewed and approved the company's interim results report for the six months ended June 30, 2025[41](index=41&type=chunk) - The members of the Audit Committee are: Mr. Gao Yibin, Mr. He Yu, Mr. Pan Qilong, and Ms. Niu Xiangchun[41](index=41&type=chunk) [Auditor](index=20&type=section&id=%E6%A0%B8%E6%95%B8%E5%B8%AB) Shinewing Certified Public Accountants (Special General Partnership) reviewed the company's unaudited interim results report for the six months ended June 30, 2025, in accordance with relevant review standards - The company's auditor, Shinewing Certified Public Accountants (Special General Partnership), reviewed the company's unaudited interim results report for the six months ended June 30, 2025, in accordance with the provisions of "China Review Standards for Certified Public Accountants No. 2101 - Review of Financial Statements"[42](index=42&type=chunk) [Shareholder Meeting Status](index=21&type=section&id=%E8%82%A1%E6%9D%B1%E6%9C%83%E8%AD%B0%E6%83%85%E6%B3%81) The company held its Annual General Meeting, H Share Class Meeting, and Domestic Share Class Meeting on May 23, 2025, with the results announced subsequently - On May 23, 2025, the company held its Annual General Meeting, H Share Class Meeting, and Domestic Share Class Meeting in Harbin, China[43](index=43&type=chunk) - The results of the relevant meetings can be found in the company's announcement dated May 23, 2025[43](index=43&type=chunk) [Other Disclosable Information](index=21&type=section&id=%E5%85%B6%E4%BB%96%E9%A0%88%E4%BA%88%E6%8A%AB%E9%9C%B2%E7%9A%84%E8%B3%87%E6%96%99) As of June 30, 2025, the company had no other information required to be disclosed under paragraphs (a) to (j) of Rule D2.40.3 of the Listing Rules - As of June 30, 2025, the company had no information required to be disclosed under paragraphs (a) to (j) of Rule D2.40.3 of the Listing Rules[44](index=44&type=chunk) [Documents Available for Inspection](index=21&type=section&id=%E5%82%99%E6%9F%A5%E6%96%87%E4%BB%B6) The company's Articles of Association and the original interim report and reviewed financial statements for the six months ended June 30, 2025, are available for inspection - The company's Articles of Association and the original interim report and reviewed financial statements for the six months ended June 30, 2025, are available for inspection at the company's headquarters at No. 1399 Chuangxin 1st Road, Songbei District, Harbin, Heilongjiang Province, China[45](index=45&type=chunk) [Review Report](index=22&type=section&id=%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A) Shinewing Certified Public Accountants (Special General Partnership) reviewed Harbin Electric Company Limited's consolidated and parent company financial statements for June 30, 2025, finding no material misstatements and concluding they fairly reflect the financial position, operating results, and cash flows in all material respects according to enterprise accounting standards - Shinewing Certified Public Accountants reviewed Harbin Electric Company Limited's consolidated and parent company balance sheets as of June 30, 2025, consolidated and parent company income statements, consolidated and parent company cash flow statements, consolidated and parent company statements of changes in shareholders' equity, and notes to the financial statements for January-June 2025[47](index=47&type=chunk) - The review was conducted in accordance with "China Review Standards for Certified Public Accountants No. 2101 - Review of Financial Statements," providing a lower level of assurance than an audit[47](index=47&type=chunk) - Based on the review, no matters were noted that would lead to a belief that the financial statements were not prepared in all material respects in accordance with enterprise accounting standards, or that they failed to fairly reflect Harbin Electric Company Limited's financial position as of June 30, 2025, and its operating results and cash flows for January-June 2025[47](index=47&type=chunk) [Consolidated Balance Sheet](index=23&type=section&id=%E5%90%88%E4%BD%B5%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E8%A1%A8) As of June 30, 2025, the company's total consolidated assets were 80.41 billion yuan, total liabilities were 63.59 billion yuan, and total equity attributable to parent company shareholders was 16.12 billion yuan, with both assets and liabilities increasing from year-end 2024 Consolidated Balance Sheet Overview | Metric | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Total Current Assets | 67,682,918,516.57 | 60,208,795,230.03 | | Total Non-current Assets | 12,727,114,472.85 | 11,737,359,924.14 | | **Total Assets** | **80,410,032,989.42** | **71,946,155,154.17** | | Total Current Liabilities | 61,406,117,639.53 | 53,192,396,798.99 | | Total Non-current Liabilities | 2,182,366,983.38 | 2,563,897,126.46 | | **Total Liabilities** | **63,588,484,622.91** | **55,756,293,925.45** | | Total Equity Attributable to Parent Company Owners | 16,122,704,764.35 | 15,482,762,134.00 | | Non-controlling Interests | 698,843,602.16 | 707,099,094.72 | | **Total Shareholders' Equity** | **16,821,548,366.51** | **16,189,861,228.72** | [Parent Company Balance Sheet](index=28&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E8%A1%A8) As of June 30, 2025, the parent company's total assets were 18.04 billion yuan, total liabilities were 9.32 billion yuan, and total shareholders' equity was 8.71 billion yuan Parent Company Balance Sheet Overview | Metric | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Total Current Assets | 7,274,701,871.77 | 7,101,976,714.38 | | Total Non-current Assets | 10,762,316,924.56 | 10,863,197,796.97 | | **Total Assets** | **18,037,018,796.33** | **17,965,174,511.35** | | Total Current Liabilities | 9,209,721,367.26 | 9,130,464,483.15 | | Total Non-current Liabilities | 115,020,919.82 | 101,906,698.12 | | **Total Liabilities** | **9,324,742,287.08** | **9,232,371,181.27** | | Total Shareholders' Equity | 8,712,276,509.25 | 8,732,803,330.08 | [Consolidated Income Statement](index=33&type=section&id=%E5%90%88%E4%BD%B5%E5%88%A9%E6%BD%A4%E8%A1%A8) In H1 2025, the company's total operating revenue was 22.70 billion yuan, a 31.49% year-on-year increase; net profit was 1.06 billion yuan, up 95.23%; net profit attributable to parent company owners was 1.05 billion yuan, with basic earnings per share of 0.47 yuan Consolidated Income Statement Overview | Metric | Jan-Jun 2025 (RMB) | Jan-Jun 2024 (RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 22,696,104,178.47 | 17,260,636,497.03 | 31.49% | | Total Operating Costs | 21,442,004,500.37 | 16,640,870,337.70 | 28.85% | | Operating Profit | 1,222,779,847.09 | 694,868,031.09 | 75.98% | | Net Profit | 1,056,332,627.14 | 541,073,632.84 | 95.23% | | Net Profit Attributable to Parent Company Owners | 1,050,891,055.16 | 522,667,422.32 | 101.06% | | Basic Earnings Per Share (yuan/share) | 0.47 | 0.23 | 104.35% | [Parent Company Income Statement](index=36&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%88%A9%E6%BD%A4%E8%A1%A8) In H1 2025, the parent company's operating revenue was 1.46 billion yuan, and net profit was 489.46 million yuan, a significant increase from the prior year Parent Company Income Statement Overview | Metric | Jan-Jun 2025 (RMB) | Jan-Jun 2024 (RMB) | | :--- | :--- | :--- | | Operating Revenue | 1,455,048,614.10 | 2,512,758,683.27 | | Operating Profit | 489,458,420.91 | 55,197,964.81 | | Net Profit | 489,460,420.91 | 55,197,964.81 | | Total Comprehensive Income | 487,107,831.17 | 55,197,964.81 | [Consolidated Cash Flow Statement](index=38&type=section&id=%E5%90%88%E4%BD%B5%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) In H1 2025, the company's net cash flow from operating activities significantly improved to 3.19 billion yuan, while net cash flow from investing activities was -1.05 billion yuan, and from financing activities was -398.95 million yuan Consolidated Cash Flow Statement Overview | Metric | Jan-Jun 2025 (RMB) | Jan-Jun 2024 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 3,192,093,533.31 | -1,430,147,768.73 | | Net Cash Flow from Investing Activities | -1,051,156,166.95 | -2,326,470.95 | | Net Cash Flow from Financing Activities | -398,946,560.54 | -676,024,063.22 | | Net Increase in Cash and Cash Equivalents | 1,668,743,579.33 | -2,165,912,507.45 | | Cash and Cash Equivalents at Period-End | 16,842,496,950.52 | 15,198,319,600.90 | [Parent Company Cash Flow Statement](index=42&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) In H1 2025, the parent company's net cash flow from operating activities was -69.07 million yuan, from investing activities was 811.78 million yuan, and from financing activities was -408.70 million yuan Parent Company Cash Flow Statement Overview | Metric | Jan-Jun 2025 (RMB) | Jan-Jun 2024 (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -69,066,825.74 | 72,966,252.16 | | Net Cash Flow from Investing Activities | 811,777,991.81 | 168,538,472.24 | | Net Cash Flow from Financing Activities | -408,704,114.68 | -668,392,921.73 | | Net Increase in Cash and Cash Equivalents | 334,007,051.39 | -426,888,197.33 | | Cash and Cash Equivalents at Period-End | 1,679,293,448.99 | 1,657,017,901.91 | [Consolidated Statement of Changes in Shareholders' Equity](index=46&type=section&id=%E5%90%88%E4%BD%B5%E8%82%A1%E6%9D%B1%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) As of June 30, 2025, total equity attributable to parent company shareholders was 16.12 billion yuan, an increase of 639.94 million yuan from the beginning of the year, primarily due to an increase in total comprehensive income Consolidated Shareholders' Equity Changes Overview | Metric | Jan-Jun 2025 (RMB) | Jan-Jun 2024 (RMB) | | :--- | :--- | :--- | | Total Equity Attributable to Parent Company Owners (Period-end) | 16,122,704,764.35 | 14,257,828,523.06 | | Change in Amount for the Year (Attributable to Parent Company Owners' Equity) | 639,942,630.35 | 393,126,373.99 | | Total Comprehensive Income (Attributable to Parent Company Owners) | 1,133,298,098.08 | 504,875,133.08 | | Distribution to Shareholders | -507,634,652.00 | -116,286,352.00 | [Parent Company Statement of Changes in Shareholders' Equity](index=48&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%B1%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) As of June 30, 2025, the parent company's total shareholders' equity was 8.71 billion yuan, a slight decrease from the beginning of the year, mainly due to profit distribution Parent Company Shareholders' Equity Changes Overview | Metric | Jan-Jun 2025 (RMB) | Jan-Jun 2024 (RMB) | | :--- | :--- | :--- | | Total Shareholders' Equity (Period-end) | 8,712,276,509.25 | 8,708,683,800.37 | | Change in Amount for the Year | -20,526,820.83 | -61,088,387.19 | | Total Comprehensive Income | 487,107,831.17 | 55,197,964.81 | | Distribution to Shareholders | -507,634,652.00 | -116,286,352.00 | [Notes to the Financial Statements](index=50&type=section&id=%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed explanations for the financial statements, covering company background, consolidation scope, accounting policies, tax information, major balance sheet and income statement items, related parties, contingencies, and supplementary financial data [I. Company Overview](index=50&type=section&id=%E4%B8%80.%20%E5%85%AC%E5%8F%B8%E7%9A%84%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) Harbin Electric Company Limited was established on October 6, 1994, listed in Hong Kong on December 16, 1994, primarily engaged in power generation equipment manufacturing and EPC, with total share capital of 2,236,276,000 shares as of June 30, 2025, and ultimately controlled by SASAC - Harbin Electric Company Limited was registered in Harbin on October 6, 1994, and listed on the Hong Kong Stock Exchange on December 16, 1994[94](index=94&type=chunk) - Primarily engaged in the production and sale of power generation equipment and undertaking power station EPC projects, including the manufacturing of large-scale thermal, hydro, nuclear power, and their auxiliary complete sets of equipment[99](index=99&type=chunk) - As of June 30, 2025, the company's total accumulated share capital was **2,236,276,000.00 shares**, with a registered capital of **2,236,276,000.00 yuan**[99](index=99&type=chunk) - The company's parent company is Harbin Electric Group Co., Ltd., with the ultimate controlling party being the **State-owned Assets Supervision and Administration Commission (SASAC)**[100](index=100&type=chunk) [II. Scope of Consolidated Financial Statements](index=53&type=section&id=%E4%BA%8C.%20%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E7%AF%84%E5%9C%8D) This period's consolidated financial statements include 41 subsidiaries, comprising 14 second-tier, 24 third-tier, and 3 fourth-tier subsidiaries - A total of **41 subsidiaries** are included in the scope of consolidated financial statements for this period, comprising **14 second-tier, 24 third-tier, and 3 fourth-tier subsidiaries**[102](index=102&type=chunk) - Key second-tier subsidiaries include Harbin Electric Group Finance Co., Ltd., Harbin Boiler Co., Ltd., and Harbin Turbine Co., Ltd[102](index=102&type=chunk)[103](index=103&type=chunk) [III. Basis of Preparation of Financial Statements](index=55&type=section&id=%E4%B8%89.%20%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E7%9A%84%E7%B7%A8%E8%A3%BD%E5%9F%BA%E7%A4%8E) The Group's financial statements are prepared on a going concern basis, in accordance with Chinese Enterprise Accounting Standards, and relevant provisions of the CSRC and Hong Kong Stock Exchange Listing Rules - The Group's financial statements are prepared on a **going concern basis**[105](index=105&type=chunk) - The preparation is based on the "Enterprise Accounting Standards" issued by the Ministry of Finance, their application guidelines, interpretations, and other relevant regulations, as well as the disclosure requirements of the China Securities Regulatory Commission's "Rules for Information Disclosure by Companies Issuing Securities to the Public No. 15" and the Hong Kong Stock Exchange's "Listing Rules"[105](index=105&type=chunk) [IV. Significant Accounting Policies and Accounting Estimates](index=56&type=section&id=%E5%9B%9B.%20%E9%87%8D%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E5%8F%8A%E6%9C%83%E8%A8%88%E4%BC%B0%E8%A8%88) This section details the company's accounting policies and estimation methods, including statements of compliance with enterprise accounting standards, accounting period, operating cycle, functional currency, basis of accounting, measurement principles, financial instruments, revenue recognition, and significant changes in accounting policies - The financial statements prepared by the company comply with the requirements of enterprise accounting standards, truly, accurately, and completely reflecting the financial position of the company and the Group as of June 30, 2025, and relevant information on operating results and cash flows for January-June 2025[106](index=106&type=chunk) - The Group's accounting period is from **January 1 to December 31** of the Gregorian calendar, with an operating cycle of **12 months**[106](index=106&type=chunk) - The company and its other subsidiaries use **RMB as their functional currency**, while some overseas subsidiaries use **USD**[106](index=106&type=chunk) - The company uses the **accrual basis of accounting**, with accounting elements generally measured at **historical cost**, and in special cases, at replacement cost, net realizable value, present value, or fair value[108](index=108&type=chunk) [4.1 Financial Instruments](index=57&type=section&id=4.1%20%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7) This section details accounting policies for financial instruments, including recognition, derecognition, classification, measurement, impairment, transfer, and distinction between financial liabilities and equity instruments, with financial assets categorized based on business model and contractual cash flow characteristics - The Group recognizes a financial asset or financial liability when it becomes a party to a financial instrument contract, and derecognizes it when specific conditions are met[109](index=109&type=chunk)[111](index=111&type=chunk) - Financial assets are classified upon initial recognition, based on the business model for managing financial assets and their contractual cash flow characteristics, as measured at **amortized cost**, at **fair value through other comprehensive income**, or at **fair value through profit or loss**[114](index=114&type=chunk) - Financial liabilities are classified upon initial recognition as measured at **fair value through profit or loss** or at **amortized cost**[132](index=132&type=chunk) - The Group performs impairment testing and recognizes loss provisions for financial assets measured at amortized cost, debt investments measured at fair value through other comprehensive income, contract assets, and lease receivables, based on **expected credit losses**[139](index=139&type=chunk) - For accounts receivable, notes receivable, and other receivables arising from daily operating activities such as sales of goods and provision of services that do not contain significant financing components, the Group applies a simplified measurement approach, measuring loss provisions at an amount equal to the **expected credit losses over the entire lifetime**[145](index=145&type=chunk) [4.2 Revenue Recognition Principles and Measurement Methods](index=82&type=section&id=4.2%20%E6%94%B6%E5%85%A5%E7%A2%BA%E8%AA%8D%E5%8E%9F%E5%88%B0%E5%92%8C%E8%A8%88%E9%87%8F%E6%96%B9%E6%B3%95) The company recognizes revenue when customers obtain control of goods or services, using different methods based on whether performance obligations are satisfied over time or at a point in time, and allocates transaction prices for contracts with multiple performance obligations based on relative standalone selling prices - The Group recognizes revenue when it satisfies a performance obligation in a contract, which is when the customer obtains control of the related goods or services[184](index=184&type=chunk) - Performance obligations are categorized as satisfied **over time** or **at a point in time**, with different revenue recognition methods applied accordingly[184](index=184&type=chunk)[186](index=186&type=chunk) - For sales of boilers, steam turbines, gas turbines, steam turbine generators, and other equipment below **600MW**, revenue is recognized at a **point in time** when all relevant equipment is signed off by the customer[200](index=200&type=chunk) - For units of **600MW and above**, hydro turbines, nuclear main pumps, nuclear generators, and engineering construction projects, these are classified as performance obligations satisfied **over time**, and revenue is recognized using the **input method**[204](index=204&type=chunk) - Financial service income is recognized based on the **time over which the right to use funds is transferred** and the **effective interest rate**[207](index=207&type=chunk) [4.3 Significant Changes in Accounting Policies and Accounting Estimates](index=92&type=section&id=4.3%20%E9%87%8D%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E5%92%8C%E6%9C%83%E8%A8%88%E4%BC%B0%E8%A8%88%E8%AE%8A%E6%9B%B4) The Ministry of Finance issued Interpretation No. 18 in December 2024, leading to accounting policy changes effective January 1, 2024, where estimated liabilities for guarantee-type quality assurance are now recorded in cost of sales, with no significant impact on the Group's profit - The Ministry of Finance issued "Interpretation No. 18 of Enterprise Accounting Standards" in December 2024, leading to a change in the company's accounting policies effective **January 1, 2024**[209](index=209&type=chunk) - When accounting for estimated liabilities arising from guarantee-type quality assurance that do not constitute a single performance obligation, the determined estimated liability amount should be recorded in "Cost of Sales," "Other Operating Costs," and other relevant accounts[209](index=209&type=chunk) - The implementation of Interpretation No. 18 has **no significant impact on the Group's profit**[209](index=209&type=chunk) Impact of Accounting Policy Changes on Relevant Items in the Consolidated Income Statement for Jan-Jun 2024 | Affected Item | Before Change (RMB) | Impact Amount (RMB) | After Change (RMB) | | :--- | :--- | :--- | :--- | | Operating Costs | 15,095,612,044.43 | 14,158,094.21 | 15,109,770,138.64 | | Selling Expenses | 253,579,762.53 | -14,158,094.21 | 239,421,668.32 | [V. Taxation](index=94&type=section&id=%E4%BA%94.%20%E7%A8%85%E9%A0%85) This section lists the company's main tax types and rates, including VAT, urban maintenance and construction tax, and corporate income tax; the company and several subsidiaries enjoy a 15% preferential corporate income tax rate as high-tech enterprises, with some advanced manufacturing enterprises also benefiting from a 5% VAT input tax credit deduction policy Main Tax Types and Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Based on sales of goods and taxable services calculated as per tax laws, after deducting deductible input VAT for the current period, the difference is the VAT payable | 3%, 6%, 9%, 10%, 13% | | Urban Maintenance and Construction Tax | Actual amount of turnover tax paid | 7% | | Corporate Income Tax | Taxable income | 15%, 25% | - Harbin Electric Company Limited and several subsidiaries have been re-certified as high-tech enterprises, applying a **15% income tax rate**[216](index=216&type=chunk)[217](index=217&type=chunk) - Harbin Electric International Engineering Co., Ltd. has been designated a technologically advanced service enterprise, applying a **15% income tax rate**[217](index=217&type=chunk) - Some advanced manufacturing enterprises enjoy a **5% preferential policy for VAT input tax credit deduction**[219](index=219&type=chunk) [VI. Notes to Major Items in Consolidated Financial Statements](index=98&type=section&id=%E5%85%AD.%20%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E4%B8%BB%E8%A6%81%E9%A0%85%E7%9B%AE%E8%A8%BB%E9%87%8B) This section provides detailed notes on major consolidated financial statement items, including cash and cash equivalents, accounts receivable, prepayments, other receivables, inventories, contract assets, other current assets, changes in long-term assets, short-term borrowings, accounts payable, contract liabilities, non-current liabilities due within one year, share capital, operating revenue and costs, period expenses, credit and asset impairment losses, restricted assets, EBITDA, and dividends - Cash and cash equivalents balance at period-end: **17.91 billion yuan**, of which **300.12 million yuan** is deposited overseas[220](index=220&type=chunk) - Accounts receivable book value at period-end: **5.34 billion yuan**, with bad debt provision of **4.05 billion yuan**[222](index=222&type=chunk) - Inventory book value at period-end: **16.85 billion yuan**, with inventory impairment provision and contract performance cost impairment provision totaling **622.60 million yuan**[263](index=263&type=chunk) - Contract liabilities balance at period-end: **29.06 billion yuan**, primarily for advance receipts for equipment and engineering projects[281](index=281&type=chunk) - Total assets with restricted ownership and use rights: **1.38 billion yuan**, mainly comprising acceptance bill deposits, statutory deposits with the central bank, and pledged buildings, land, and construction in progress[297](index=297&type=chunk) - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[302](index=302&type=chunk) [VII. Related Parties and Related Party Transactions](index=136&type=section&id=%E4%B8%83.%20%E9%97%9C%E8%81%AF%E6%96%B9%E5%8F%8A%E9%97%9C%E8%81%AF%E4%BA%A4%E6%98%93) This section discloses the company's related party relationships, including its parent company Harbin Electric Group Co., Ltd. and its subsidiaries, along with ongoing related party transactions and period-end balances of receivables and payables, all at agreed-upon prices - The company's parent company is Harbin Electric Group Co., Ltd., with a registered capital of **2 billion yuan**, a shareholding ratio of **69.79%**, and the ultimate controlling party being **SASAC**[303](index=303&type=chunk) - Other related parties include subsidiaries of the controlling shareholder Harbin Electric Group, such as Harbin Electric Power Equipment Co., Ltd. and Jiamusi Electric Machine Co., Ltd[306](index=306&type=chunk)[308](index=308&type=chunk) - Related party transactions include sales of goods, purchases of goods, service fee expenses, interest payable on deposits, entrusted loan interest income and expenses, and entrusted management fees, with transaction prices determined by **mutual agreement**[310](index=310&type=chunk)[313](index=313&type=chunk)[315](index=315&type=chunk)[319](index=319&type=chunk)[321](index=321&type=chunk) - Period-end receivables from related parties totaled **238.39 million yuan**, and payables to related parties totaled **4.80 billion yuan**[331](index=331&type=chunk)[347](index=347&type=chunk) [VIII. Contingencies](index=157&type=section&id=%E5%85%AB.%20%E6%88%96%E6%9C%89%E4%BA%8B%E9%A0%85) As of June 30, 2025, the company had no contingent liabilities or contingent assets requiring disclosure - As of June 30, 2025, the company had no contingent liabilities requiring explanation[349](index=349&type=chunk) - As of June 30, 2025, the company had no contingent assets requiring explanation[349](index=349&type=chunk) [IX. Events After the Balance Sheet Date](index=157&type=section&id=%E4%B9%9D.%20%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E8%A1%A8%E6%97%A5%E5%BE%8C%E4%BA%8B%E9%A0%85) As of the date of approval for issuance of the financial report, the Group had no un-disclosed events after the balance sheet date - As of the date of approval for issuance of the financial report, the Group had no un-disclosed events after the balance sheet date[350](index=350&type=chunk) [X. Supplementary Financial Information](index=158&type=section&id=%E5%8D%81.%20%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E8%A3%9C%E5%85%85%E8%B3%87%E6%96%99) This section provides a statement of non-recurring gains and losses and earnings per share information, with net non-recurring gains and losses attributable to the parent company totaling 177.33 million yuan, and basic and diluted earnings per share both at 0.47 yuan - Net non-recurring gains and losses attributable to the parent company: **177.33 million yuan**[356](index=356&type=chunk) - Total net profit attributable to parent company owners after deducting non-recurring gains and losses: **873.56 million yuan**[356](index=356&type=chunk) - Basic earnings per share: **0.47 yuan**[358](index=358&type=chunk) - Diluted earnings per share: **0.47 yuan**[358](index=358&type=chunk) [Company Information](index=164&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) This section provides essential company details for Harbin Electric Company Limited, including its legal name, registered and office addresses, contact information, legal representative, authorized representatives, company secretary, auditor, legal counsel, and H-share listing information - Company legal name: **Harbin Electric Company Limited** (Chinese name: 哈爾濱電氣股份有限公司)[360](index=360&type=chunk) - Company registered and office address: **No. 1399 Chuangxin 1st Road, Songbei District, Harbin, Heilongjiang Province, People's Republic of China**[360](index=360&type=chunk) - Legal representative: **Mr. Huang Wei** (appointed on July 9, 2025)[360](index=360&type=chunk) - Auditor: **Shinewing Certified Public Accountants (Special General Partnership)**[360](index=360&type=chunk) - H-share listing information: **The Stock Exchange of Hong Kong Limited, Stock Code: 1133**[360](index=360&type=chunk)

美的集團股份有限公司 Midea Group Co., Ltd. （於中華人民共和國註冊成立的股份有限公司） 股份代號 : 0300 2025 中期報告 目錄 | 釋義 | 2 | | --- | --- | | 業務概覽 | 5 | | 公司資料 | 7 | | 管理層討論與分析 | 9 | | 財務回顧 | 46 | | 董事會報告 | 56 | | 股份變動及股東情況 | 72 | | 中期財務資料的審閱報告 | 75 | | 中期簡明合併損益表 | 76 | | 中期簡明合併綜合收益表 | 77 | | 中期簡明合併財務狀況表 | 78 | | 中期簡明合併權益變動表 | 81 | | 中期簡明合併現金流量表 | 83 | | 中期財務資料附註 | 85 | 釋義 在本報告中，除非文意另有所指，下列詞語或詞組具有如下含義： 美的集團股份有限公司 中期報告2025 3 | 釋義項 | | 釋義內容 | | --- | --- | --- | | 「人民幣」 | 指 | 人民幣，中國內地法定貨幣 | | 「《證券法》」 | 指 | 《中華人民共和國證券法》 | | 「《證券及期貨條例》」 | 指 | 指香 ...

[Company Information](index=3&type=section&id=Company%20Information) [Board of Directors](index=3&type=section&id=Board%20of%20Directors) The Board of Directors includes executive, non-executive, and independent non-executive directors; an executive director change occurred on May 1, 2025 - Executive Director Mr. Lam Wai Tong resigned on May 1, 2025, and Mr. Wong Yiu Kui was appointed on the same day[4](index=4&type=chunk)[5](index=5&type=chunk) - The Chairman of the Board is Mr. Cheung Shui Lun, a non-executive director[4](index=4&type=chunk)[5](index=5&type=chunk) [Company Addresses](index=3&type=section&id=Company%20Addresses) The company is registered in the Cayman Islands, with its principal business in Hong Kong and an office in Beijing - The registered address is in the Cayman Islands, and the principal place of business in Hong Kong is 19th Floor, Sun Hung Kai Centre, 30 Harbour Road, Wan Chai[4](index=4&type=chunk)[5](index=5&type=chunk) - The Beijing office is located at Beichen Times Building, No. 8 Beichen East Road, Chaoyang District[7](index=7&type=chunk)[8](index=8&type=chunk) [Listing Information](index=4&type=section&id=Listing%20Information) Company shares are listed on HKEX (01555), and 2028 senior notes are listed on the Singapore Exchange - The company's shares are listed on The Stock Exchange of Hong Kong Limited, stock code: **01555**[7](index=7&type=chunk)[8](index=8&type=chunk) - The company's senior notes due 2028 are listed on the Singapore Exchange Securities Trading Limited[7](index=7&type=chunk)[8](index=8&type=chunk) [Company Secretary & Authorized Representatives](index=4&type=section&id=Company%20Secretary%20%26%20Authorized%20Representatives) Ms. Tse Fung Sum serves as Company Secretary, with Mr. Cheung Shui Lun and Mr. Zhao Jiangwei as authorized representatives - The Company Secretary is Ms. Tse Fung Sum[7](index=7&type=chunk)[8](index=8&type=chunk) - The authorized representatives are Mr. Cheung Shui Lun and Mr. Zhao Jiangwei[7](index=7&type=chunk)[8](index=8&type=chunk) [Committee Members](index=5&type=section&id=Committee%20Members) The company has Audit, Remuneration, and Nomination Committees, each chaired by an independent non-executive director - The Chairman of the Audit Committee is Mr. Liu Ying Shun[9](index=9&type=chunk)[10](index=10&type=chunk) - The Chairman of the Remuneration Committee is Mr. Mei Jianping[9](index=9&type=chunk)[10](index=10&type=chunk) - The Chairman of the Nomination Committee is Mr. Mei Jianping[9](index=9&type=chunk)[10](index=10&type=chunk) [Advisors](index=5&type=section&id=Advisors) The company engages Ryder Scott, BDO, and multiple law firms as independent technical, audit, and legal advisors - The independent technical advisor is Ryder Scott Company, L.P.[9](index=9&type=chunk)[10](index=10&type=chunk) - The independent auditor is BDO Limited[10](index=10&type=chunk)[11](index=11&type=chunk) - Legal advisors include Jingtian & Gongcheng (PRC law), Maples and Calder (Cayman Islands law), and Kwok Yih & Chan (Hong Kong law)[13](index=13&type=chunk)[14](index=14&type=chunk) - The principal bankers are Citibank and China Construction Bank Corporation Limited[13](index=13&type=chunk)[14](index=14&type=chunk) [Share Registrars](index=6&type=section&id=Share%20Registrars) Maples FS Limited is the Cayman Islands principal share registrar, and Tricor Investor Services Limited is the Hong Kong branch - The principal share registrar in the Cayman Islands is Maples FS Limited[13](index=13&type=chunk)[14](index=14&type=chunk) - The Hong Kong branch share registrar is Tricor Investor Services Limited[13](index=13&type=chunk)[14](index=14&type=chunk) [Financial Summary](index=7&type=section&id=Financial%20Summary) 2025 Interim Financial Summary (RMB thousands) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Revenue | 365,702 | 461,288 | | EBITDA | 214,001 | 286,652 | | Adjusted EBITDA | 213,183 | 281,215 | | Loss for the Period | (148,019) | (110,090) | | Basic Loss Per Share | (0.04) | (0.03) | | Diluted Loss Per Share | (0.04) | (0.03) | **Balance Sheet (as at period end):** | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Property, Plant and Equipment | 823,109 | 951,943 | | Cash and Cash Equivalents | 51,862 | 71,883 | | Total Assets | 1,266,126 | 1,382,193 | | Total Equity | (2,405,999) | (2,269,825) | - H1 2025 saw total revenue decrease by **20.7%** and loss for the period increase by **34.4%**, with total assets declining and equity deficit widening[15](index=15&type=chunk) - As of June 30, 2025, total assets decreased by **8.4%** compared to December 31, 2024, and the total equity deficit further widened[15](index=15&type=chunk) [Operating Summary](index=8&type=section&id=Operating%20Summary) 2025 Interim Operating Summary | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Net Crude Oil Sales (barrels) | 731,238 | 798,902 | | Net Crude Oil Production (barrels) | 729,939 | 797,321 | | Average Daily Net Production (barrels/day) | 4,033 | 4,381 | | Average Realized Price (USD/barrel) | 69.63 | 81.31 | | Lifting Cost (USD/barrel) | 17.34 | 17.21 | | Wells Drilled During Period (total) | – | – | - For the six months ended June 30, 2025, both net crude oil sales and net production decreased year-on-year, with average daily net production decreasing by **7.9%**[17](index=17&type=chunk) - The average realized oil price decreased by **14.4%** year-on-year to **USD 69.63/barrel**, while lifting costs slightly increased by **0.8%** to **USD 17.34/barrel**[17](index=17&type=chunk) [Management Discussion and Analysis](index=9&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Prospects](index=9&type=section&id=BUSINESS%20REVIEW%20AND%20PROSPECTS) In H1 2025, the Group navigated declining oil prices by maintaining stable production and cost advantages, with plans for digital management and tech innovation for sustainable development - In H1 2025, the international crude oil market experienced ample supply and a year-on-year decline in crude oil prices, primarily due to the US trade war and OPEC+ production increases[18](index=18&type=chunk)[20](index=20&type=chunk) - The Group actively responded to the complex macroeconomic situation, coordinating production and operations, enhancing quality and efficiency, promoting green and low-carbon initiatives, and steadily advancing crude oil capacity building to continuously consolidate its cost advantages[18](index=18&type=chunk)[20](index=20&type=chunk) H1 2025 Crude Oil Production and Price Changes | Indicator | H1 2025 | H1 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Total Crude Oil Production | 1.52 million barrels | 1.70 million barrels | -10.4% | | Net Crude Oil Production Attributable to the Group | 0.73 million barrels | 0.80 million barrels | -8.5% | | Average Daily Total Crude Oil Production | 8,409 barrels/day | - | -9.9% | | Average Daily Net Crude Oil Production | 4,033 barrels/day | 4,381 barrels/day | -7.9% | | Average Realized Oil Price | 69.63 USD/barrel | 81.31 USD/barrel | -14.4% | | Da'an Oilfield Lifting Cost | 17.34 USD/barrel | 17.21 USD/barrel | +0.8% | - As of June 30, 2025, the Group holds **100%** foreign contractor interest in the Da'an Product Sharing Contract in China[19](index=19&type=chunk)[21](index=21&type=chunk) - The Group did not conduct any drilling activities in the Da'an Oilfield in H1 2025[22](index=22&type=chunk)[25](index=25&type=chunk) - As of the end of 2022, the Group had completed drilling 268 new wells as stipulated in the supplementary agreement to the Da'an Petroleum Contract, and the operating period of the Da'an Product Sharing Contract has been extended to February 29, 2028[28](index=28&type=chunk)[30](index=30&type=chunk) - Looking ahead to H2 2025, international crude oil prices are expected to remain under pressure amidst volatility, and the Group will continue to promote digital management and technological innovation to support high-quality sustainable development[29](index=29&type=chunk)[31](index=31&type=chunk) [Review of Financial Results](index=12&type=section&id=REVIEW%20OF%20FINANCIAL%20RESULTS) The Group's H1 2025 revenue decreased by **20.7%** to **RMB 365.7 million**, expanding net loss to **RMB 148.0 million** despite reduced operating and finance costs [Revenue](index=12&type=section&id=Revenue) - The Group's revenue, entirely from China, decreased by **20.7%** year-on-year to **RMB 365.7 million**[23](index=23&type=chunk)[25](index=25&type=chunk)[33](index=33&type=chunk)[36](index=36&type=chunk) - The decline in revenue was primarily due to an **8.5%** decrease in net crude oil sales (from 0.80 million barrels to 0.73 million barrels) and a **14.4%** decrease in average realized oil price (from **USD 81.31/barrel** to **USD 69.63/barrel**)[33](index=33&type=chunk)[36](index=36&type=chunk) - For the six months ended June 30, 2025, revenue from services provided was zero, compared to **RMB 0.1 million** in the same period last year[34](index=34&type=chunk)[36](index=36&type=chunk) [Operating Expenses](index=12&type=section&id=Operating%20expenses) - Depreciation, depletion, and amortization expenses decreased by **8.2%** year-on-year to **RMB 158.8 million**, mainly due to lower net crude oil production[35](index=35&type=chunk)[37](index=37&type=chunk) Taxes (Other than Income Tax) | Tax Category | 2025 (RMB thousands) | 2024 (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Special Oil Gain Levy | 5,976 | 23,469 | -74.5% | | City Construction Tax and Education Surcharge | 1,160 | 1,458 | -20.5% | | Others | 22 | 22 | 0% | | **Total** | **7,158** | **24,949** | **-71.3%** | - Taxes (other than income tax) decreased by **71.1%** year-on-year to **RMB 7.2 million**, primarily due to a reduction in the special oil gain levy as the threshold was adjusted to **USD 65/barrel**[38](index=38&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk) - Staff compensation costs同比略增**0.2%** to **RMB 46.3 million**, remaining largely stable[41](index=41&type=chunk)[44](index=44&type=chunk) - Procurement, services, and other direct costs decreased by **9.2%** year-on-year to **RMB 100.6 million**, mainly due to reduced measures for increasing oil production in the Da'an Oilfield (approximately **RMB 8 million**) resulting from lower oil prices, and decreased administrative expenses (approximately **RMB 1.8 million**) due to strict budget management and cost control[42](index=42&type=chunk)[45](index=45&type=chunk) [Other Gains/(Losses), Net](index=14&type=section&id=Other%20gains%2F%28losses%29%2C%20net) - Other net gains decreased year-on-year to **RMB 2.4 million** (H1 2024: **RMB 7.3 million**), primarily due to a reduction of approximately **RMB 4.6 million** in net fair value changes of the derivative component of borrowings[43](index=43&type=chunk)[46](index=46&type=chunk) [Finance Costs](index=15&type=section&id=Finance%20costs) - Finance costs decreased by **4.8%** year-on-year to **RMB 184.5 million**, mainly due to the impact of exchange rate fluctuations[47](index=47&type=chunk)[51](index=51&type=chunk) - Excluding the impact of accrued interest expenses, a net profit of **RMB 27.4 million** would have been generated for the period[47](index=47&type=chunk)[51](index=51&type=chunk) [Loss Before Income Tax](index=15&type=section&id=Loss%20before%20income%20tax) - Loss before income tax increased by **RMB 49.1 million** year-on-year to **RMB 129.3 million**, primarily due to a decrease in revenue of approximately **RMB 95.5 million**, partially offset by reduced operating and finance costs[48](index=48&type=chunk)[52](index=52&type=chunk) [Income Tax Expense](index=15&type=section&id=Income%20tax%20expense) - Income tax expense decreased by **37.5%** year-on-year to **RMB 18.7 million**[49](index=49&type=chunk)[53](index=53&type=chunk) [Loss for the Period](index=15&type=section&id=Loss%20for%20the%20period) - Loss for the period increased by **RMB 37.9 million** year-on-year to **RMB 148.0 million**, primarily due to the cumulative effect of the aforementioned factors[50](index=50&type=chunk)[54](index=54&type=chunk) [EBITDA and Adjusted EBITDA](index=16&type=section&id=EBITDA%20AND%20ADJUSTED%20EBITDA) The Group's H1 2025 EBITDA decreased by **25.3%** to **RMB 214.0 million**, and Adjusted EBITDA decreased by **24.2%** to **RMB 213.2 million**, primarily due to reduced revenue - EBITDA refers to earnings before income tax, interest income, finance costs, and depreciation, depletion, and amortization[55](index=55&type=chunk)[57](index=57&type=chunk) - Adjusted EBITDA further excludes non-cash and non-recurring items such as employee service costs under share option schemes, net impairment losses on financial assets, impairment losses on assets, fair value changes of financial instruments, and other non-cash or non-recurring income/expenses[55](index=55&type=chunk)[57](index=57&type=chunk) Reconciliation of EBITDA and Adjusted EBITDA to Loss Before Income Tax | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss Before Income Tax | (129,332) | (80,188) | | Interest Income | (17) | (85) | | Finance Costs | 184,520 | 193,884 | | Depreciation, Depletion and Amortization | 158,830 | 173,041 | | **EBITDA** | **214,001** | **286,652** | | Net Fair Value Change of New Secured Borrowings and 2024 Senior Notes Derivative Components | (818) | (5,437) | | **Adjusted EBITDA** | **213,183** | **281,215** | - The Group's EBITDA decreased by **25.3%** to **RMB 214.0 million**, and Adjusted EBITDA decreased by **24.2%** to **RMB 213.2 million** year-on-year, primarily due to a decrease in revenue of approximately **RMB 95.5 million** resulting from lower oil prices and net crude oil sales[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk) [Liquidity and Capital Resources](index=20&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) In H1 2025, operating activities were the main cash source, but total cash and equivalents decreased; total borrowings and leverage ratios increased [Overview](index=20&type=section&id=Overview) - For the six months ended June 30, 2025, the primary source of cash was cash flows generated from operating activities[66](index=66&type=chunk)[69](index=69&type=chunk) - As of June 30, 2025, cash and cash equivalents decreased by **RMB 20.0 million** compared to December 31, 2024, primarily denominated in RMB, USD, or HKD[67](index=67&type=chunk)[69](index=69&type=chunk) [Cash Generated from Operating Activities](index=20&type=section&id=Cash%20generated%20from%20operating%20activities) - For the six months ended June 30, 2025, net cash generated from operating activities was **RMB 165.1 million**, a decrease from **RMB 255.8 million** in the same period of 2024[68](index=68&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk)[74](index=74&type=chunk) - In H1 2025, net cash from operating activities included a loss before income tax of **RMB 129.3 million**, and adjustments for depreciation, depletion, and amortization of **RMB 158.8 million**, and net interest expense of **RMB 185.8 million**[68](index=68&type=chunk)[70](index=70&type=chunk) [Cash Used in Investing Activities](index=21&type=section&id=Cash%20used%20in%20investing%20activities) - For the six months ended June 30, 2025, net cash used in investing activities was **RMB 110.4 million**, primarily for the purchase of property, plant and equipment (**RMB 72.3 million**) and an increase in restricted cash (**RMB 38.1 million**)[72](index=72&type=chunk)[75](index=75&type=chunk) - Compared to the same period in 2024, net cash used in investing activities decreased (H1 2024: **RMB 133.3 million**)[73](index=73&type=chunk)[75](index=75&type=chunk) [Cash Used in Financing Activities](index=22&type=section&id=Cash%20used%20in%20financing%20activities) - For the six months ended June 30, 2025, net cash used in financing activities was **RMB 74.5 million**, primarily for the repayment of secured borrowings (**RMB 68.0 million**) and 2024 senior notes (**RMB 3.6 million**)[76](index=76&type=chunk)[80](index=80&type=chunk) - Compared to the same period in 2024, net cash used in financing activities decreased (H1 2024: **RMB 109.6 million**)[77](index=77&type=chunk)[80](index=80&type=chunk) [Borrowings](index=22&type=section&id=Borrowings) - As of June 30, 2025, the Group's total borrowings were approximately **RMB 3.0024 billion**, an increase of approximately **RMB 82.3 million** from December 31, 2024[78](index=78&type=chunk)[81](index=81&type=chunk) - Borrowings repayable within one year were approximately **RMB 152.0 million**, an increase of **RMB 18.8 million** from December 31, 2024[78](index=78&type=chunk)[81](index=81&type=chunk) - All borrowings are denominated in USD or HKD and are fixed-rate borrowings, with no hedging activities undertaken[78](index=78&type=chunk)[81](index=81&type=chunk) - The gearing ratio (net borrowings divided by the sum of net borrowings and total equity) increased from **492.4%** as of December 31, 2024, to **541.9%** as of June 30, 2025[79](index=79&type=chunk)[81](index=81&type=chunk) - The total borrowings to adjusted EBITDA ratio increased from **5.3** as of December 31, 2024, to **7.0** as of June 30, 2025[79](index=79&type=chunk)[81](index=81&type=chunk) [Market Risk](index=23&type=section&id=Market%20risk) The Group faces significant market risks from crude oil price volatility and exchange rate fluctuations, with no current foreign exchange hedging activities [Crude Oil Price Risk](index=23&type=section&id=Oil%20price%20risk) - The Group's realized oil prices are determined with reference to international market oil prices, and the instability and high volatility of international crude oil prices significantly impact revenue and profit[83](index=83&type=chunk)[87](index=87&type=chunk) [Currency Risk](index=23&type=section&id=Currency%20risk) - Most of the Group's sales in China are denominated in USD, while production and other expenses are accounted for in RMB[84](index=84&type=chunk)[88](index=88&type=chunk) - RMB is a non-freely convertible currency and is regulated by the Chinese government, which may lead to significant exchange rate fluctuations in the future[84](index=84&type=chunk)[88](index=88&type=chunk) - The Group currently does not engage in hedging activities aimed at managing foreign exchange rate risk but will continue to monitor foreign exchange movements[85](index=85&type=chunk)[89](index=89&type=chunk) [Charges on Group Assets](index=24&type=section&id=CHARGES%20ON%20GROUP%20ASSETS) As of June 30, 2025, the Group's product sharing contract interests, bank accounts, and subsidiary shares were pledged as collateral for **RMB 1.6249 billion** in secured borrowings - As of June 30, 2025, the Group's product sharing contract interests in China, certain bank accounts, and shares of subsidiaries were pledged as collateral for secured borrowings totaling **RMB 1.6249 billion**[90](index=90&type=chunk)[93](index=93&type=chunk) [Employees](index=24&type=section&id=EMPLOYEES) As of June 30, 2025, the company had **920** employees in China, with no significant changes in compensation, policies, or development - As of June 30, 2025, the company had **920** employees, all located in China (mainland and Hong Kong)[91](index=91&type=chunk)[94](index=94&type=chunk) - There were no significant changes in employee compensation, remuneration policies, or staff development compared to the information disclosed in the 2024 annual report[91](index=91&type=chunk)[94](index=94&type=chunk) [Contingencies](index=24&type=section&id=CONTINGENCIES) As of June 30, 2025, the Board of Directors was not aware of any significant contingent liabilities - As of June 30, 2025, the company's Board of Directors was not aware of any significant contingencies[92](index=92&type=chunk)[95](index=95&type=chunk) [Other Information](index=25&type=section&id=Other%20Information) [Directors' and Chief Executives' Interests and/or Short Positions in the Shares, Underlying Shares and Debentures of the Company or Any Associated Corporation](index=25&type=section&id=DIRECTORS'%20AND%20CHIEF%20EXECUTIVES'%20INTERESTS%20AND%2FOR%20SHORT%20POSITIONS%20IN%20THE%20SHARES%2C%20UNDERLYING%20SHARES%20AND%20DEBENTURES%20OF%20THE%20COMPANY%20OR%20ANY%20ASSOCIATED%20CORPORATION) As of June 30, 2025, directors and chief executives held interests in company shares, with Mr. Cheung Shui Lun and Mr. Zhao Jiangwei holding significant long and short positions via controlled corporations Directors' and Chief Executives' Interests in the Company's Shares | Name | Corporation Name | Capacity/Nature of Interest | Number of Shares (including exercisable share options) | Approximate Total Percentage of Interest in Corporation | | :--- | :--- | :--- | :--- | :--- | | Mr. Cheung Shui Lun | The Company | Interest in controlled corporation | 1,566,108,234 (L) | 46.24% | | | The Company | Interest in controlled corporation | 88,521,234 (S) | 2.61% | | | The Company | Beneficial owner | 7,987,000 (L) | 0.24% | | Mr. Zhao Jiangwei | The Company | Interest in controlled corporation | 1,566,108,234 (L) | 46.24% | | | The Company | Interest in controlled corporation | 88,521,234 (S) | 2.61% | | Mr. Mei Jianping | The Company | Beneficial owner | 1,267,933 (L) | 0.03% | | Mr. Mei Liming | The Company | Beneficial owner | 15,909,290 (L) | 0.46% | - Mr. Cheung Shui Lun, Mr. Zhao Jiangwei, and Ms. Zhao Jiangbo (Mr. Cheung Shui Lun's spouse) have entered into an acting-in-concert agreement to act in concert on all matters decided by FEEL shareholders[102](index=102&type=chunk) - The long positions of FEEL, Mr. Cheung Shui Lun, and Mr. Zhao Jiangwei in 1,566,108,234 shares of the company include shares held through subsidiaries, put options, and shares beneficially owned by Mr. Cheung Shui Lun himself[104](index=104&type=chunk) [Substantial Shareholders' Interests and/or Short Positions in the Shares and Underlying Shares of the Company](index=32&type=section&id=SUBSTANTIAL%20SHAREHOLDERS'%20INTERESTS%20AND%2FOR%20SHORT%20POSITIONS%20IN%20THE%20SHARES%20AND%20UNDERLYING%20SHARES%20OF%20THE%20COMPANY) As of June 30, 2025, substantial shareholders, including Ms. Zhao Jiangbo, FEEL, and Orient Energy Opportunity Investment Limited Partnership Fund affiliates, held significant interests or short positions in the company's shares Substantial Shareholders' Interests in the Company's Shares | Name of Interested Party | Capacity/Nature of Interest | Total Number of Shares (including exercisable share options) | Approximate Percentage of Interest in the Company | | :--- | :--- | :--- | :--- | | Ms. Zhao Jiangbo | Interest in controlled corporation | 1,566,108,234 (L) | 46.24% | | | Interest in controlled corporation | 88,521,234 (S) | 2.61% | | FEEL | Interest in controlled corporation | 1,566,108,234 (L) | 46.24% | | | Interest in controlled corporation | 88,521,234 (S) | 2.61% | | Mr. He Zhicheng | Interest in controlled corporation | 1,566,108,234 (L) | 46.24% | | | Interest in controlled corporation | 88,521,234 (S) | 2.61% | | Celestial Energy Limited | Interest in controlled corporation | 1,566,108,234 (L) | 46.24% | | | Interest in controlled corporation | 88,521,234 (S) | 2.61% | | Orient Energy Opportunity Investment Limited Partnership Fund | Person holding security interest in shares | 1,472,300,000 (L) | 43.47% | | OHC Opportunity Investment Limited | Interest in controlled corporation | 1,472,300,000 (L) | 43.47% | | Excel Link Capital Inc. | Interest in controlled corporation | 1,472,300,000 (L) | 43.47% | | Billion Capital Shine Inc. | Interest in controlled corporation | 1,472,300,000 (L) | 43.47% | | China Orient Asset Management (International) Holding Limited | Interest in controlled corporation | 1,472,300,000 (L) | 43.47% | | Wise Leader Assets Ltd. | Interest in controlled corporation | 1,472,300,000 (L) | 43.47% | | Dongyin Development (Holdings) Co., Ltd. | Interest in controlled corporation | 1,472,300,000 (L) | 43.47% | | China Orient Asset Management Co., Ltd. | Interest in controlled corporation | 1,472,300,000 (L) | 43.47% | | Central Huijin Investment Ltd. | Interest in controlled corporation | 1,472,300,000 (L) | 43.47% | | Flying Investments Limited | Beneficial owner | 199,160,000 (L) | 5.88% | | Mr. Xue Hanrong | Interest in controlled corporation | 199,160,000 (L) | 5.88% | - Orient Energy Opportunity Investment Limited Partnership Fund and its affiliates (including OHC Opportunity Investment Limited, Excel Link Capital Inc., Billion Capital Shine Inc., China Orient Asset Management (International) Holding Limited, Wise Leader Assets Ltd., Dongyin Development (Holdings) Co., Ltd., China Orient Asset Management Co., Ltd., and Central Huijin Investment Ltd.) held a security interest in **1,472,300,000** shares of the company, representing **43.47%**[124](index=124&type=chunk)[125](index=125&type=chunk)[128](index=128&type=chunk)[132](index=132&type=chunk) [Share Options](index=36&type=section&id=SHARE%20OPTIONS) The 2021 Share Option Scheme incentivizes contributors; as of June 30, 2025, **19,543,930** options remained unexercised with a **HKD 0.044** weighted average exercise price and **6** years remaining contractual life [2021 Share Option Scheme ("2021 Scheme")](index=36&type=section&id=2021%20Share%20Option%20Scheme%20%28%222021%20Scheme%22%29) - The 2021 Share Option Scheme was adopted by the Board on June 25, 2021, with a **10-year** validity period, aiming to grant share options to executive directors, non-executive directors, full-time employees, consultants, and advisors[134](index=134&type=chunk)[137](index=137&type=chunk) - The exercise period for share options shall not exceed **ten years** from the date of grant, and the exercise price shall be the highest of the closing price on the grant date, the average closing price for the five trading days immediately preceding the grant date, and the nominal value of the shares[135](index=135&type=chunk)[137](index=137&type=chunk) - Share options generally vest annually on the last day of the three-year period starting from the year following the grant, subject to employee status and other performance evaluation results[136](index=136&type=chunk)[138](index=138&type=chunk) Changes in 2021 Share Option Scheme (as of June 30, 2025) | Name | Held as at January 1, 2025 | Number of Options Granted During the Period | Number of Options Exercised During the Period | Number of Lapsed Options | Number of Cancelled Options | Held as at June 30, 2025 | Exercise Price (per share) | Date of Grant | Closing Price as at June 29, 2021 (per share) | Exercisable Period | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Mr. Mei Jianping | 1,267,933 | – | – | – | – | 1,267,933 | HKD 0.044 | June 30, 2021 | HKD 0.044 | June 30, 2021 to June 29, 2031 | | Other Employees | 18,275,997 | – | – | – | – | 18,275,997 | HKD 0.044 | June 30, 2021 | HKD 0.044 | June 30, 2021 to June 29, 2031 | | **Total** | **19,543,930** | **–** | **–** | **–** | **–** | **19,543,930** | | | | | [Others](index=37&type=section&id=Others) - Under the 2021 Scheme, the total number of shares granted to each participant in any **12-month** period shall not exceed **1%** of the company's issued share capital[141](index=141&type=chunk)[143](index=143&type=chunk) - The total number of shares that may be issued under all schemes shall not exceed **10%** of the issued shares as of the date of the 2021 Annual General Meeting[141](index=141&type=chunk)[143](index=143&type=chunk) - As of June 30, 2025, the number of share options available for grant under the 2021 Scheme was **184,425,229** shares, representing approximately **5.45%** of the issued share capital[142](index=142&type=chunk)[143](index=143&type=chunk)[145](index=145&type=chunk)[150](index=150&type=chunk) [Dividend](index=38&type=section&id=DIVIDEND) The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 (H1 2024: nil)[146](index=146&type=chunk)[151](index=151&type=chunk) [Audit Committee](index=38&type=section&id=AUDIT%20COMMITTEE) The Audit Committee reviewed the Group's accounting principles, internal controls, and financial reporting, including H1 2025 unaudited interim results and report - The Audit Committee has reviewed the Group's accounting principles and practices, and discussed internal controls and financial reporting matters, including the unaudited interim results and interim report for the six months ended June 30, 2025[147](index=147&type=chunk)[152](index=152&type=chunk) - The Audit Committee has adopted terms of reference in compliance with the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules[148](index=148&type=chunk)[152](index=152&type=chunk) [Buy-back, Sale or Redemption of the Company's Listed Securities](index=38&type=section&id=BUY-BACK%2C%20SALE%20OR%20REDEMPTION%20OF%20THE%20COMPANY'S%20LISTED%20SECURITIES) For H1 2025, neither the company nor its subsidiaries repurchased, sold, or redeemed any of the company's listed securities - For the six months ended June 30, 2025, neither the company nor its subsidiaries repurchased, sold, or redeemed any of the company's listed securities[149](index=149&type=chunk)[153](index=153&type=chunk) [Corporate Governance Code](index=39&type=section&id=CORPORATE%20GOVERNANCE%20CODE) The company complied with the Corporate Governance Code principles and provisions from January 1 to June 30, 2025 - The company has complied with the principles and code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules for the period from January 1, 2025, to June 30, 2025[154](index=154&type=chunk)[158](index=158&type=chunk) [Model Code for Securities Transactions](index=39&type=section&id=MODEL%20CODE%20FOR%20SECURITIES%20TRANSACTIONS) The company adopted and confirmed compliance with the Model Code for Securities Transactions by Directors for H1 2025 - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[155](index=155&type=chunk)[159](index=159&type=chunk) - All directors have confirmed compliance with the Model Code for the six months ended June 30, 2025, and no non-compliance by employees was noted[156](index=156&type=chunk)[159](index=159&type=chunk) [Independent Non-Executive Directors](index=39&type=section&id=INDEPENDENT%20NON-EXECUTIVE%20DIRECTORS) The Board complied with Listing Rules requirements regarding the number, qualifications, and proportion of independent non-executive directors - The Board of Directors has at all times complied with the requirements of Listing Rule 3.10(1) (at least three independent non-executive directors), 3.10(2) (one of whom must have appropriate professional qualifications or accounting or related financial management expertise), and 3.10A (independent non-executive directors must comprise at least one-third of the Board)[157](index=157&type=chunk)[160](index=160&type=chunk) [Condensed Interim Consolidated Statement of Financial Position](index=40&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Financial%20Position) Condensed Interim Consolidated Statement of Financial Position (as of June 30, 2025) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Assets** | | | | Property, Plant and Equipment | 823,109 | 951,943 | | Intangible Assets | 18,668 | 22,257 | | Right-of-use Assets | 8,893 | 4,521 | | Restricted Cash (Non-current) | 214,038 | 176,149 | | **Total Non-current Assets** | **1,078,458** | **1,168,778** | | Inventories | 29,320 | 27,533 | | Trade Receivables | 55,640 | 68,223 | | Cash and Cash Equivalents | 51,862 | 71,883 | | **Total Current Assets** | **187,668** | **213,415** | | **Total Assets** | **1,266,126** | **1,382,193** | | **Equity** | | | | Total Accumulated Losses Attributable to Owners | (2,405,999) | (2,269,825) | | **Liabilities** | | | | Borrowings (Non-current) | 2,850,384 | 2,786,845 | | Deferred Income Tax Liabilities | 109,877 | 128,309 | | Trade Payables (Non-current) | 623 | 16,617 | | Provisions, Accruals and Other Payables (Non-current) | 315,400 | 282,674 | | **Total Non-current Liabilities** | **3,280,915** | **3,216,406** | | Trade Payables (Current) | 78,535 | 123,105 | | Borrowings (Current) | 151,993 | 133,217 | | **Total Current Liabilities** | **391,210** | **435,612** | | **Total Liabilities** | **3,672,125** | **3,652,018** | | Net Current Liabilities | 203,542 | 222,197 | - As of June 30, 2025, total assets were **RMB 1,266,126 thousand**, a decrease of approximately **8.4%** from December 31, 2024[161](index=161&type=chunk) - Total accumulated losses attributable to owners further expanded to **RMB (2,405,999) thousand**[162](index=162&type=chunk) - Current liabilities exceeded current assets by **RMB 203,542 thousand**, indicating liquidity pressure[164](index=164&type=chunk) [Condensed Interim Consolidated Statement of Comprehensive Income](index=43&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Comprehensive%20Income) Condensed Interim Consolidated Statement of Comprehensive Income (for the six months ended June 30, 2025) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue from Contracts with Customers | 365,702 | 461,288 | | Depreciation, Depletion and Amortization | (158,830) | (173,041) | | Taxes (Other than Income Tax) | (7,158) | (24,949) | | Staff Compensation Costs | (46,337) | (46,177) | | Procurement, Services and Other Direct Costs | (100,640) | (110,811) | | Other Gains/(Losses), Net | 2,434 | 7,301 | | Interest Income | 17 | 85 | | Finance Costs | (184,520) | (193,884) | | **Loss Before Income Tax** | **(129,332)** | **(80,188)** | | Income Tax Expense | (18,687) | (29,902) | | **Loss for the Period Attributable to Owners of the Company** | **(148,019)** | **(110,090)** | | **Other Comprehensive Income for the Period, Net of Tax** | **11,845** | **(14,865)** | | **Total Comprehensive Income for the Period Attributable to Owners of the Company** | **(136,174)** | **(124,955)** | | Basic Loss Per Share (RMB per share) | (0.04) | (0.03) | | Diluted Loss Per Share (RMB per share) | (0.04) | (0.03) | - For the six months ended June 30, 2025, revenue from contracts with customers decreased by **20.7%** year-on-year, leading to an expanded loss before income tax of **RMB 129.3 million**[166](index=166&type=chunk) - Loss for the period attributable to owners of the company was **RMB 148.0 million**, an increase from **RMB 110.1 million** in the prior year period[166](index=166&type=chunk) - Other comprehensive income after tax turned positive from negative in the prior year, mainly due to exchange differences[168](index=168&type=chunk) [Condensed Interim Consolidated Statement of Changes in Equity](index=45&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Condensed Interim Consolidated Statement of Changes in Equity (as of June 30, 2025) | Indicator | Share Capital (RMB thousands) | Share Premium (RMB thousands) | Other Reserves (RMB thousands) | Accumulated Losses (RMB thousands) | Total Equity (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | As at January 1, 2025 | 22,555 | 1,085,620 | 173,918 | (3,551,918) | (2,269,825) | | Profit for the Period | – | – | – | (148,019) | (148,019) | | Other Comprehensive Income: Exchange Differences | – | – | 11,845 | – | 11,845 | | **Total Comprehensive Income for the Period** | **–** | **–** | **11,845** | **(148,019)** | **(136,174)** | | **As at June 30, 2025 (Unaudited)** | **22,555** | **1,085,620** | **185,763** | **(3,699,937)** | **(2,405,999)** | | As at January 1, 2024 | 22,555 | 1,085,620 | 213,073 | (3,223,747) | (1,902,499) | | Loss for the Period | – | – | – | (110,090) | (110,090) | | Other Comprehensive Income: Exchange Differences | – | – | (14,865) | – | (14,865) | | **Total Comprehensive Income for the Period** | **–** | **–** | **(14,865)** | **(110,090)** | **(124,955)** | | **As at June 30, 2024 (Unaudited)** | **22,555** | **1,085,620** | **198,208** | **(3,333,837)** | **(2,027,454)** | - As of June 30, 2025, accumulated losses further increased to **RMB 3,699,937 thousand**, leading to an expanded total equity deficit of **RMB 2,405,999 thousand**[170](index=170&type=chunk) - Other reserves saw a positive change due to foreign currency translation differences, but this did not offset the negative impact of the loss for the period on equity[170](index=170&type=chunk) [Condensed Interim Consolidated Statement of Cash Flows](index=46&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Cash%20Flows) Condensed Interim Consolidated Statement of Cash Flows (for the six months ended June 30, 2025) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 165,078 | 255,766 | | Net Cash Used in Investing Activities | (110,370) | (133,282) | | Net Cash Used in Financing Activities | (74,513) | (109,643) | | Net Increase/(Decrease) in Cash and Cash Equivalents | (19,805) | 12,841 | | Cash and Cash Equivalents at Beginning of Year | 71,883 | 62,905 | | Exchange (Losses)/Gains on Cash and Cash Equivalents | (216) | 340 | | Cash and Cash Equivalents at End of Period | 51,862 | 76,086 | - For the six months ended June 30, 2025, net cash generated from operating activities decreased by **35.4%** year-on-year to **RMB 165.1 million**[172](index=172&type=chunk) - Net cash used in investing activities was **RMB 110.4 million**, primarily for the purchase of property, plant and equipment[172](index=172&type=chunk) - Net cash used in financing activities was **RMB 74.5 million**, primarily for the repayment of borrowings[172](index=172&type=chunk) - Cash and cash equivalents at the end of the period were **RMB 51,862 thousand**, a decrease from the beginning of the year, whereas the prior year period saw a net increase[173](index=173&type=chunk) [Notes to the Condensed Interim Consolidated Financial Information](index=48&type=section&id=Notes%20to%20the%20Condensed%20Interim%20Consolidated%20Financial%20Information) [1. General Information](index=48&type=section&id=1.%20GENERAL%20INFORMATION) MI Energy Holdings Limited primarily engages in crude oil exploration, development, production, and sales in China; the Da'an Product Sharing Contract was extended to February 29, 2028, and the company is indirectly controlled by Far East Energy Limited - The Group is principally engaged in the exploration, development, production, and sale of crude oil in China under product sharing contracts[175](index=175&type=chunk)[179](index=179&type=chunk) - The expiry date of the Da'an Product Sharing Contract has been extended from December 31, 2024, to February 29, 2028[176](index=176&type=chunk)[179](index=179&type=chunk) - As of June 30, 2025, the company is indirectly controlled by Far East Energy Limited (FEEL), which owns **43.39%** of the company's share capital, and the ultimate controlling shareholder is Mr. Cheung Shui Lun[177](index=177&type=chunk)[179](index=179&type=chunk) - The company's shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since December 14, 2010[178](index=178&type=chunk)[180](index=180&type=chunk) [2. Adoption of International Financial Reporting Standards ("IFRS Accounting Standards")](index=49&type=section&id=2.%20ADOPTION%20OF%20INTERNATIONAL%20FINANCIAL%20REPORTING%20STANDARDS%20%28%22IFRS%20ACCOUNTING%20STANDARDS%22%29) The accounting policies for these interim financial statements align with 2024 annual statements, adopting new standards effective January 1, 2025, which had no significant impact - The accounting policies adopted in the preparation of these condensed interim consolidated financial information are consistent with those applied in the preparation of the Group's annual consolidated financial statements for the year ended December 31, 2024, except for the adoption of new standards effective from January 1, 2025[183](index=183&type=chunk)[186](index=186&type=chunk) - An amendment first applied in 2025 (Amendments to IAS 21: Lack of Exchangeability) had no impact on the Group's condensed interim consolidated financial information[187](index=187&type=chunk)[

Financial Performance - For the first half of 2025, the group's revenue was HKD 379,673,000, a decrease of 3.11% compared to HKD 391,842,000 for the same period in 2024[10] - Shareholders' profit attributable to the company was HKD 77,383,000, down 23.88% from HKD 101,660,000 in the previous year[10] - Basic and diluted earnings per share were both HKD 0.0833, compared to HKD 0.1095 for the same period last year[10] - The company's gross profit for the same period was HKD 103,257,000, reflecting a decline of 29.62% from HKD 146,705,000 in 2024[26] - The EBITDA for the six months ended June 30, 2025, was HKD 261,020,000, down 13.89% from HKD 303,138,000 in 2024, with an EBITDA margin of 68.7%[26] - Operating profit for the period was HKD 103,429,000, a decline of 28.5% from HKD 144,544,000 in the previous year[46] - Net profit for the period was HKD 77,812,000, representing a decrease of 23.4% compared to HKD 101,660,000 in 2024[47] - Total comprehensive income for the period was HKD 91,429,000, an increase of 8.7% from HKD 83,951,000 in the previous year[47] Dividends - The board declared an interim dividend of HKD 0.025 per share, down from HKD 0.045 per share in the previous year[11] - The company plans to declare an interim dividend of 2.50 HKD per share, which is a reduction from the previous interim dividend of 4.50 HKD per share in 2024[69] - Total interim dividend declared after the reporting period amounted to HKD 23,214,000[95] Revenue Sources - Revenue from satellite transponder capacity for the six months ended June 30, 2025, was HKD 323,371,000, a decline of 5.8% from HKD 343,652,000 in 2024[63] - Revenue from satellite broadcasting and telecommunications services was HKD 1,917,000, down from HKD 2,096,000 in the previous year[63] - Revenue from other satellite-related services increased to HKD 54,385,000, up 17.5% from HKD 46,094,000 in 2024[63] - The company reported that approximately 90% of its revenue is derived from satellite transponder capacity and related services[59] - Major customer contributed HKD 124,372,000 in revenue, representing over 10% of total revenue for the period[59] Market Conditions - The company is facing a challenging market environment with a continued oversupply in the satellite transponder market, leading to a decline in rental prices[20] - The decrease in revenue was primarily attributed to a reduction in satellite transponder capacity income during the period[10] - The company achieved a positive growth in business volume in the mainland China and Southeast Asia markets despite the tough market conditions[20] Financial Position - The company reported a total cash and bank balance of HKD 2,511,187,000 as of June 30, 2025, an increase of 2.56% from HKD 2,448,394,000 at the end of 2024[26] - The total liabilities decreased by 3.64% to HKD 845,473,000 as of June 30, 2025, compared to HKD 877,443,000 in 2024[26] - The company continues to maintain a strong financial position and is exploring new satellite project investments and business expansions[22] - As of June 30, 2025, total liabilities decreased to HKD 845,473,000, a reduction of HKD 31,970,000 from December 31, 2024, resulting in a debt-to-asset ratio of 12.1%[36] Operational Efficiency - The group continues to maintain good operational status of its satellites and ground control systems, ensuring reliable service delivery[12] - The company continues to maintain a strong financial position and is exploring new satellite project investments and business expansions[22] - The company plans to expand its traditional satellite resource leasing business while leveraging high-throughput satellites to provide quality broadband services[22] Audit and Compliance - The interim results have been reviewed by the audit and risk management committee and independent auditors[9] - The company has prepared the interim financial statements in accordance with International Accounting Standards (IAS) 34 and Hong Kong Accounting Standards (HKAS) 34[107] - The review of the interim financial statements was conducted under the guidelines of the Hong Kong Institute of Certified Public Accountants, focusing on inquiries and analytical procedures[109] - No significant issues were noted that would lead to a belief that the interim financial statements were not prepared in accordance with IAS 34 or HKAS 34[110] Employee and Workforce Development - The number of employees increased to 118 as of June 30, 2025, from 113 as of June 30, 2024, indicating a focus on workforce development[45]