[Financial Highlights](index=1&type=section&id=Financial%20Highlights) [Interim Results Summary for the Six Months Ended June 30, 2025](index=1&type=section&id=Interim%20Results%20Summary%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025) The Group's unaudited condensed consolidated interim results for the six months ended June 30, 2025, show a significant decline in revenue and profit, with a corresponding decrease in earnings per share Key Financial Data for the Six Months Ended June 30 (RMB thousands) | Indicator | 2025 | 2024 | Change | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Revenue | 136,682 | 153,535 | (16,853) | -11.0% | | Gross Profit | 39,336 | 46,851 | (7,515) | -16.0% | | Profit Before Income Tax | 26,281 | 36,466 | (10,185) | -27.9% | | Profit for the Period | 21,955 | 31,557 | (9,602) | -30.4% | | Profit for the Period Attributable to Equity Holders of the Company | 21,955 | 31,557 | (9,602) | -30.4% | | Basic and Diluted Earnings Per Share (RMB cents) | 17.15 | 24.65 | (7.50) | -30.4% | [Condensed Consolidated Interim Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Financial%20Statements) [Condensed Consolidated Interim Statement of Profit or Loss](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Profit%20or%20Loss) The Group's consolidated statement of profit or loss for the six months ended June 30, 2025, shows a decline in revenue, gross profit, operating profit, and profit for the period, primarily due to changes in cost of sales, selling, and administrative expenses Condensed Consolidated Interim Statement of Profit or Loss for the Six Months Ended June 30 (RMB thousands) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 136,682 | 153,535 | | Cost of Sales | (97,346) | (106,684) | | Gross Profit | 39,336 | 46,851 | | Selling Expenses | (3,020) | (1,697) | | Administrative Expenses | (16,704) | (20,669) | | Net Reversal of Impairment Loss on Financial Assets | 683 | 4,488 | | Other Income | 5,528 | 1,528 | | Other (Losses) / Gains — Net | (132) | 1,867 | | Operating Profit | 25,691 | 32,368 | | Finance Income | 590 | 4,098 | | Profit Before Income Tax | 26,281 | 36,466 | | Income Tax Expense | (4,326) | (4,909) | | Profit for the Period Attributable to Equity Holders of the Company | 21,955 | 31,557 | | Basic and Diluted Earnings Per Share (RMB cents) | 17.15 | 24.65 | [Condensed Consolidated Interim Statement of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Comprehensive%20Income) The Group's total comprehensive income for the six months ended June 30, 2025, is consistent with the profit for the period, with no other comprehensive income generated Condensed Consolidated Interim Statement of Comprehensive Income for the Six Months Ended June 30 (RMB thousands) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the Period | 21,955 | 31,557 | | Other Comprehensive Income | — | — | | Total Comprehensive Income Attributable to Equity Holders of the Company | 21,955 | 31,557 | [Condensed Consolidated Interim Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets and liabilities decreased compared to December 31, 2024, while total equity increased, indicating a stable financial structure Condensed Consolidated Interim Statement of Financial Position as of June 30 (RMB thousands) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **ASSETS** | | | | Non-current Assets | 165,411 | 175,925 | | Current Assets | 754,468 | 887,639 | | **TOTAL ASSETS** | **919,879** | **1,063,564** | | **EQUITY** | | | | Total Equity | 724,735 | 713,020 | | **LIABILITIES** | | | | Current Liabilities | 195,144 | 350,544 | | **TOTAL LIABILITIES** | **195,144** | **350,544** | | **TOTAL EQUITY AND LIABILITIES** | **919,879** | **1,063,564** | [Notes to the Condensed Consolidated Interim Financial Information](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) [1. General Information of the Group](index=6&type=section&id=1.%20General%20Information%20of%20the%20Group) Wuxi Sunlit Science and Technology Co., Ltd. primarily manufactures and sells steel wire production line equipment and standalone machines, established in China in 2006 and listed on the HKEX Main Board in 2014 - The Group's principal activities are the manufacturing and sale of a series of equipment and standalone machines for steel wire production lines[9](index=9&type=chunk) - The Company was incorporated in China on March 21, 2006, and listed on the Main Board of the Stock Exchange of Hong Kong on November 11, 2014[9](index=9&type=chunk)[10](index=10&type=chunk) [2. Basis of Preparation](index=6&type=section&id=2.%20Basis%20of%20Preparation) The condensed consolidated interim financial information is prepared in accordance with HKAS 34 "Interim Financial Reporting" and should be read in conjunction with the annual financial statements for the year ended December 31, 2024 - The condensed consolidated interim financial information is prepared in accordance with Hong Kong Accounting Standard ("HKAS") 34 "Interim Financial Reporting"[13](index=13&type=chunk) [3. Accounting Policies](index=6&type=section&id=3.%20Accounting%20Policies) The Group's accounting policies are consistent with the 2024 annual financial statements, with new and revised standards applied for the first time having no significant impact on the interim financial information, and future standards are also not expected to have a material effect - The accounting policies applied are consistent with those applied in the annual financial statements for the year ended December 31, 2024, and income tax for the interim period is accrued using the tax rate that would be applicable to the expected total annual earnings[14](index=14&type=chunk)[15](index=15&type=chunk) - The Group has applied new and revised standards for the first time on January 1, 2025, which had no significant impact on the condensed consolidated interim financial information[16](index=16&type=chunk)[17](index=17&type=chunk) - New and revised standards issued but not yet effective, such as HKFRS 18 "Presentation and Disclosure in Financial Statements," are not expected to have a significant impact on the Group's consolidated financial statements[17](index=17&type=chunk) [4. Estimates](index=8&type=section&id=4.%20Estimates) The preparation of interim financial information involves management's judgments, estimates, and assumptions, with key sources consistent with the consolidated financial statements for the year ended December 31, 2024 - The preparation of interim financial information requires management to make judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income, and expenses[18](index=18&type=chunk) [5. Fair Value Estimation](index=8&type=section&id=5.%20Fair%20Value%20Estimation) The Group's financial instruments are measured at fair value and categorized into three levels, with the carrying amounts of most financial assets and short-term liabilities approximating their fair values - Financial instruments measured at fair value are measured using different valuation techniques, with inputs categorized into three levels (Level 1, Level 2, Level 3)[19](index=19&type=chunk)[21](index=21&type=chunk) - The carrying amounts of the Group's other financial assets and short-term liabilities approximate their fair values due to their short-term nature[19](index=19&type=chunk) [6. Revenue](index=8&type=section&id=6.%20Revenue) The Group primarily engages in the production and sale of steel wire product equipment and leasing, with total revenue for the six months ended June 30, 2025, at RMB 136,682 thousand, a 11.0% decrease year-on-year, mainly due to a significant reduction in electro-brass steel wire production line sales, offset by an increase in standalone machine sales - The Group is principally engaged in the production and sale of a series of equipment for manufacturing steel wire products and leasing[20](index=20&type=chunk) Revenue Breakdown for the Six Months Ended June 30 (RMB thousands) | Revenue Category | 2025 | 2024 | | :--- | :--- | :--- | | Electro-brass Steel Wire Production Lines | 52,615 | 85,221 | | Other Production Lines | 1,725 | 6,997 | | Standalone Machine Sales | 75,030 | 49,242 | | Sales of Other Die Repair Equipment, Parts and Accessories | 4,975 | 9,707 | | Rental Income | 2,337 | 2,368 | | **Total Revenue** | **136,682** | **153,535** | Geographical Distribution of Revenue for the Six Months Ended June 30 (RMB thousands) | Region | 2025 | 2024 | | :--- | :--- | :--- | | China | 121,480 | 147,259 | | Others | 15,202 | 6,276 | | **Total Revenue** | **136,682** | **153,535** | Major Customer Revenue Contribution for the Six Months Ended June 30 (RMB thousands) | Customer | 2025 | 2024 | | :--- | :--- | :--- | | Company A | 104,119 | 85,281 | | Company B | 15,160 | Not Applicable | | Company C | Not Applicable | 48,576 | [7. Expenses by Nature](index=9&type=section&id=7.%20Expenses%20by%20Nature) Total cost of sales, selling, and administrative expenses for the period was RMB 117,070 thousand, a decrease from RMB 129,050 thousand in the prior period, primarily due to a significant reduction in raw material consumption and outsourced installation and transportation fees Expenses by Nature for the Six Months Ended June 30 (RMB thousands) | Expense Category | 2025 | 2024 | | :--- | :--- | :--- | | Changes in Inventories of Finished Goods and Work-in-progress | 70,943 | (97,498) | | Raw Materials Used | 17,570 | 179,725 | | Employee Benefit Expenses | 11,826 | 15,355 | | Depreciation and Amortization | 5,544 | 5,728 | | Other Tax Expenses | 2,383 | 3,290 | | Outsourced Installation and Transportation Fees | 2,209 | 13,198 | | Business Entertainment Expenses | 1,331 | 549 | | Professional Fees | 1,107 | 1,033 | | Travel Expenses | 685 | 794 | | Office Expenses | 522 | 661 | | Auditor's Remuneration | 472 | 547 | | Impairment Provision for Properties Held for Sale | — | 3,795 | | Other Expenses | 2,478 | 1,873 | | **Total Cost of Sales, Selling and Administrative Expenses** | **117,070** | **129,050** | [8. Other Income](index=10&type=section&id=8.%20Other%20Income) Other income for the period significantly increased to RMB 5,528 thousand, primarily driven by a substantial rise in interest income from fixed deposits and an increase in government grants Other Income for the Six Months Ended June 30 (RMB thousands) | Income Category | 2025 | 2024 | | :--- | :--- | :--- | | Interest Income from Fixed Deposits | 4,162 | — | | VAT Deductions | 178 | 1,088 | | Government Grants | 1,262 | 412 | | VAT Refunds | (74) | 28 | | **Total** | **5,528** | **1,528** | - Government grants primarily refer to subsidies for the Group's intelligent manufacturing projects and contributions to stable employee employment[26](index=26&type=chunk) [9. Other (Losses) / Gains — Net](index=10&type=section&id=9.%20Other%20%28Losses%29%20%2F%20Gains%20%E2%80%94%20Net) The period recorded other net losses of RMB 132 thousand, compared to net gains of RMB 1,867 thousand in the prior period, mainly due to exchange losses and reduced gains from disposal of property, plant, and equipment Other (Losses) / Gains — Net for the Six Months Ended June 30 (RMB thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Gains / (Losses) on Disposal of Properties Held for Sale | 294 | (1) | | Gains on Disposal of Property, Plant and Equipment | 4 | 1,170 | | Exchange (Losses) / Gains — Net | (430) | 567 | | Others | — | 131 | | **Total** | **(132)** | **1,867** | [10. Employee Benefit Expenses](index=10&type=section&id=10.%20Employee%20Benefit%20Expenses) Employee benefit expenses for the period were RMB 11,826 thousand, a decrease from RMB 15,355 thousand in the prior period, primarily due to a reduction in wages, salaries, and discretionary bonuses Employee Benefit Expenses for the Six Months Ended June 30 (RMB thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Wages, Salaries and Discretionary Bonuses | 8,169 | 11,466 | | Other Social Security Costs, Housing Benefits and Other Employee Benefits | 2,589 | 2,692 | | Defined Contribution Plan Retirement Costs | 1,068 | 1,197 | | **Total** | **11,826** | **15,355** | [11. Finance Income](index=11&type=section&id=11.%20Finance%20Income) Finance income for the period significantly decreased to RMB 590 thousand, primarily due to a reduction in bank interest income from RMB 4,063 thousand in the prior period to RMB 565 thousand Finance Income for the Six Months Ended June 30 (RMB thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Bank Interest Income | 565 | 4,063 | | Amortization of Unrealized Finance Income | 25 | 35 | | **Total** | **590** | **4,098** | [12. Income Tax Expense](index=11&type=section&id=12.%20Income%20Tax%20Expense) Income tax expense for the period was RMB 4,326 thousand, a decrease from RMB 4,909 thousand in the prior period, mainly due to reduced taxable income, with the Company benefiting from a 15% preferential corporate income tax rate as a high-tech enterprise Income Tax Expense for the Six Months Ended June 30 (RMB thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current Income Tax — China Corporate Income Tax | 3,304 | 4,332 | | Deferred Income Tax | 1,022 | 577 | | **Income Tax Expense** | **4,326** | **4,909** | - The Company qualifies as a high-tech enterprise and is subject to a reduced corporate income tax rate of **15%**[31](index=31&type=chunk) - Wuxi Haisheng Software Technology Co., Ltd. and Jiangsu Sunlit Equipment Technology Co., Ltd. qualify as small and micro enterprises, enjoying preferential income tax rates[31](index=31&type=chunk) [13. Earnings Per Share](index=12&type=section&id=13.%20Earnings%20Per%20Share) Basic and diluted earnings per share for the period were 17.15 RMB cents, a 30.4% decrease from 24.65 RMB cents in the prior period, consistent with the decline in profit for the period Earnings Per Share Calculation for the Six Months Ended June 30 (RMB thousands/thousands of shares/RMB cents) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the Period Attributable to Equity Holders of the Company | 21,955 | 31,557 | | Weighted Average Number of Ordinary Shares in Issue | 128,000 | 128,000 | | **Basic and Diluted Earnings Per Share (RMB cents)** | **17.15** | **24.65** | - Diluted earnings per share are equal to basic earnings per share as there were no outstanding potential dilutive ordinary shares during the reporting period[33](index=33&type=chunk) [14. Leases](index=12&type=section&id=14.%20Leases) The Group's right-of-use assets primarily consist of land use rights in mainland China with a 50-year lease term, and related amortization expenses are recognized in cost of sales and administrative expenses Right-of-Use Assets (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Land Use Rights | 19,656 | 19,965 | - All of the Group's land use rights are located in mainland China and held under 50-year leases[34](index=34&type=chunk) - For the six months ended June 30, 2025, amortization of land use rights was recognized as RMB 114 thousand in administrative expenses and RMB 195 thousand in cost of sales[34](index=34&type=chunk) [15. Property, Plant and Equipment](index=13&type=section&id=15.%20Property%2C%20Plant%20and%20Equipment) As of June 30, 2025, the net book value of property, plant and equipment was RMB 74,625 thousand, a slight decrease from RMB 76,564 thousand as of January 1, 2025, primarily due to depreciation expenses despite new additions Net Book Value of Property, Plant and Equipment (RMB thousands) | Item | June 30, 2025 | January 1, 2025 | | :--- | :--- | :--- | | Buildings | 55,352 | 57,770 | | Machinery | 15,135 | 14,795 | | Motor Vehicles | 1,452 | 592 | | Computer and Electronic Equipment | 534 | 669 | | Office Equipment | 490 | 548 | | Interior Decoration | 1,662 | 2,190 | | **Total** | **74,625** | **76,564** | Depreciation Expense for the Six Months Ended June 30 (RMB thousands) | Category | 2025 | 2024 | | :--- | :--- | :--- | | Cost of Sales | 2,350 | 2,029 | | Administrative Expenses | 2,071 | 2,578 | | Selling Expenses | 1 | — | | **Total** | **4,422** | **4,607** | [16. Investment Properties](index=14&type=section&id=16.%20Investment%20Properties) As of June 30, 2025, the net book value of investment properties was RMB 13,351 thousand, a decrease from the beginning of the period, mainly due to depreciation and amortization expenses, with these properties held for rental income or capital appreciation Net Book Value of Investment Properties (RMB thousands) | Item | June 30, 2025 | January 1, 2024 | | :--- | :--- | :--- | | Opening Balance | 14,151 | 15,750 | | Depreciation and Amortization Expense | (800) | (800) | | **Closing Balance** | **13,351** | **14,950** | - Investment properties primarily consist of leasehold land and buildings held to earn long-term rental income or for capital appreciation or both[38](index=38&type=chunk) Investment Property Related Income for the Six Months Ended June 30 (RMB thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Rental Income | 2,337 | 2,368 | | Direct Operating Expenses Generating Rental Income | (800) | (800) | | **Net Income** | **1,537** | **1,568** | [17. Deferred Tax Assets — Net](index=15&type=section&id=17.%20Deferred%20Tax%20Assets%20%E2%80%94%20Net) As of June 30, 2025, net deferred tax assets were RMB 28,767 thousand, a decrease from the beginning of the period, primarily due to amounts deducted from the condensed interim statement of profit or loss Movement in Deferred Tax Assets (RMB thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Opening Balance as of January 1 | 29,789 | 19,135 | | Deducted from Condensed Interim Statement of Profit or Loss | (1,022) | (577) | | **Closing Balance as of June 30** | **28,767** | **18,558** | [18. Inventories](index=15&type=section&id=18.%20Inventories) As of June 30, 2025, the net book value of inventories was RMB 136,903 thousand, a significant decrease from RMB 208,243 thousand as of December 31, 2024, primarily due to a reduction in finished goods inventory Inventories Breakdown (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Raw Materials | 19,918 | 20,335 | | Work-in-progress | 5,954 | 1,067 | | Finished Goods | 118,174 | 194,004 | | Cost | 144,046 | 215,406 | | Less: Impairment Provision | (7,143) | (7,163) | | **Net Book Value** | **136,903** | **208,243** | [19. Properties Held for Sale](index=15&type=section&id=19.%20Properties%20Held%20for%20Sale) As of June 30, 2025, the net book value of properties held for sale was RMB 7,390 thousand, a decrease from RMB 8,440 thousand as of December 31, 2024 Properties Held for Sale (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cost | 45,301 | 51,801 | | Less: Impairment Provision | (37,911) | (43,361) | | **Net Book Value** | **7,390** | **8,440** | [20. Prepayments](index=16&type=section&id=20.%20Prepayments) As of June 30, 2025, total prepayments were RMB 1,179 thousand, a decrease from RMB 1,900 thousand as of December 31, 2024, primarily due to a reduction in prepaid VAT and other taxes Prepayments Breakdown (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Prepayments for Raw Materials | 426 | 322 | | Prepaid VAT and Other Taxes | 753 | 1,578 | | **Total** | **1,179** | **1,900** | [21. Trade and Other Receivables](index=16&type=section&id=21.%20Trade%20and%20Other%20Receivables) As of June 30, 2025, net trade and other receivables were RMB 149,341 thousand, a significant decrease from RMB 230,942 thousand as of December 31, 2024, primarily due to a reduction in trade receivables and commercial acceptance bills Net Trade and Other Receivables (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade Receivables — Net | 120,645 | 184,835 | | Commercial Acceptance Bills — Net | 25,886 | 40,294 | | Bank Acceptance Bills | 1,650 | 3,981 | | Other Receivables — Net | 1,160 | 1,832 | | **Total** | **149,341** | **230,942** | Ageing Analysis of Trade Receivables (RMB thousands) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 Year | 74,967 | 130,275 | | 1 to 2 Years | 34,003 | 49,031 | | 2 to 3 Years | 27,966 | 26,868 | | Over 3 Years | 91,144 | 87,913 | | **Total** | **228,080** | **294,087** | Movement in Impairment Provision for Trade Receivables, Commercial Acceptance Bills and Other Receivables (RMB thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Opening Balance as of January 1 | 114,170 | 77,199 | | Net Reversal of Impairment Loss | (2,247) | (4,938) | | Write-off of Irrecoverable Receivables | — | (7,155) | | **Closing Balance as of June 30** | **111,923** | **65,106** | [22. Contract Assets](index=18&type=section&id=22.%20Contract%20Assets) As of June 30, 2025, net contract assets were RMB 45,424 thousand, a decrease from RMB 49,465 thousand as of December 31, 2024, with contract assets typically due for collection after the product quality assurance period expires Net Contract Assets (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Contract Assets | 53,177 | 55,654 | | Less: Impairment Provision for Contract Assets | (7,753) | (6,189) | | **Contract Assets — Net** | **45,424** | **49,465** | - Contract assets are due for collection upon the expiry of the product quality assurance period, which is generally 12 or 24 months from customer acceptance of the equipment[45](index=45&type=chunk) Movement in Impairment Provision for Contract Assets (RMB thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Opening Balance as of January 1 | 6,189 | 2,487 | | Net Impairment Loss | 1,564 | 450 | | **Closing Balance as of June 30** | **7,753** | **2,937** | [23. Cash and Cash Equivalents](index=19&type=section&id=23.%20Cash%20and%20Cash%20Equivalents) As of June 30, 2025, the Group's total cash and bank balances increased to RMB 443,179 thousand from RMB 424,028 thousand as of December 31, 2024, reflecting an increase in cash and cash equivalents, a decrease in restricted cash, and an increase in fixed deposits Cash and Cash Equivalents Breakdown (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and Bank Balances | 139,881 | 100,313 | | Bank Deposits | 303,298 | 323,715 | | **Total** | **443,179** | **424,028** | | Less: Restricted Cash | (34,192) | (76,869) | | Less: Fixed Deposits | (269,106) | (246,846) | | **Cash and Cash Equivalents** | **139,881** | **100,313** | - The Group's cash and cash equivalents, restricted cash, and fixed deposits are primarily denominated in RMB[48](index=48&type=chunk) - Fixed deposits were initially for periods of more than 3 months but less than 1 year, with a weighted average effective interest rate of **2.60%** per annum as of June 30, 2025 (December 31, 2024: **2.90%** per annum)[49](index=49&type=chunk) [24. Share Capital and Share Premium](index=20&type=section&id=24.%20Share%20Capital%20and%20Share%20Premium) As of June 30, 2025, and December 31, 2024, the Company's share capital and share premium remained unchanged, with 128,000,000 shares in issue Share Capital and Share Premium (RMB thousands) | Item | Number of Shares in Issue (shares) | Share Capital | Share Premium | Total | | :--- | :--- | :--- | :--- | :--- | | As of June 30, 2025 and December 31, 2024 | 128,000,000 | 128,000 | 311,464 | 439,464 | [25. Reserves](index=20&type=section&id=25.%20Reserves) As of June 30, 2025, the Group's total reserves increased to RMB 81,381 thousand from the beginning of the period, primarily due to transfers to statutory reserves Movement in Reserves (RMB thousands) | Item | Capital Reserve | Statutory Reserve | Special Reserve | Total | | :--- | :--- | :--- | :--- | :--- | | As of January 1, 2025 | 17,637 | 49,162 | 12,439 | 79,238 | | Transfer to Statutory Reserve | — | 2,186 | — | 2,186 | | Utilization of Safety Fund | — | — | (43) | (43) | | **As of June 30, 2025** | **17,637** | **51,348** | **12,396** | **81,381** | - Certain Group entities are required to set aside a percentage of their income as a safety fund for improving machinery manufacturing safety, which is not available for distribution to shareholders[50](index=50&type=chunk) [26. Trade and Other Payables](index=21&type=section&id=26.%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables were RMB 81,614 thousand, a significant decrease from RMB 175,046 thousand as of December 31, 2024, primarily due to a reduction in bills payable and trade payables Trade and Other Payables Breakdown (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bills Payable | 32,507 | 88,033 | | Trade Payables | 35,137 | 71,601 | | Provision for Quality Assurance Expenses | 2,852 | 3,489 | | Quality Assurance Deposits from Suppliers | 2,635 | 2,835 | | Accrued Employee Benefits | 2,475 | 2,680 | | Other Taxes Payable | 802 | 723 | | Payables for Property, Plant and Equipment | 298 | 923 | | Others | 4,908 | 4,762 | | **Total** | **81,614** | **175,046** | - Bills payable are secured by pledged cash deposits with banks[51](index=51&type=chunk) Ageing Analysis of Trade Payables (RMB thousands) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 Year | 28,312 | 63,832 | | 1 to 2 Years | 6,747 | 6,377 | | Over 2 Years | 78 | 1,392 | | **Total** | **35,137** | **71,601** | [27. Dividends](index=21&type=section&id=27.%20Dividends) The final dividend for the year ended December 31, 2024, was paid on July 18, 2025, and the Board does not recommend an interim dividend for the six months ended June 30, 2025 - The final dividend of **RMB 0.08** per share (totaling **RMB 10,240 thousand**) for the year ended December 31, 2024, was paid on July 18, 2025[53](index=53&type=chunk) - The directors of the Company do not recommend the declaration of a dividend for the six months ended June 30, 2025[54](index=54&type=chunk) [28. Capital Commitments](index=22&type=section&id=28.%20Capital%20Commitments) As of June 30, 2025, contracted but unprovided capital expenditure was RMB 79 thousand, primarily for property, plant, and equipment Capital Commitments Contracted But Not Provided For (RMB thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Property, Plant and Equipment | 79 | 662 | [29. Related Party Transactions](index=22&type=section&id=29.%20Related%20Party%20Transactions) The Group is ultimately controlled by Mr. Zhang Degang, Mr. Zhang Deqiang, and Ms. Zhang Jinghua, and there were no significant related party transactions during the period - The Group is ultimately controlled by Mr. Zhang Degang, Mr. Zhang Deqiang, and Ms. Zhang Jinghua, who held a **60.34%** direct equity interest in the Company as of June 30, 2025[56](index=56&type=chunk) - For the six months ended June 30, 2025, and 2024, the Group did not enter into any significant related party transactions[57](index=57&type=chunk) Key Management Compensation for the Six Months Ended June 30 (RMB thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Wages, Salaries and Bonuses | 1,252 | 994 | | Benefits and Pensions | 296 | 289 | | **Total** | **1,548** | **1,283** | [Management Discussion and Analysis](index=23&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=23&type=section&id=Business%20Review) In the first half of 2025, the Group faced dual pressures from China-US trade friction and exchange rate fluctuations, leading to a slight decline in steel cord industry exports; despite external challenges, the Group focused on its core business, advancing refined management and internal control governance, while China's automotive market, especially new energy vehicles, achieved significant growth in production and sales - In the first half of 2025, a new round of China-US tariff wars and renewed anti-dumping and countervailing duties on Chinese steel cord by the US subjected the industry to dual pressures from trade friction and exchange rate fluctuations[59](index=59&type=chunk) - The Company further focused on its core business, steadily advancing various operational tasks through refined management and internal control governance[59](index=59&type=chunk) - From January to June 2025, China's automobile production and sales increased by **12.5%** and **11.4%** year-on-year, respectively, with new energy vehicle production and sales growing by **41.4%** and **40.3%** respectively[59](index=59&type=chunk) - As of June 30, 2025, the Group achieved revenue of **RMB 136.68 million**, a year-on-year decrease of **11.0%**, and recorded a net profit of **RMB 21.955 million**, a year-on-year decrease of **30.4%**[59](index=59&type=chunk) [Revenue](index=23&type=section&id=Revenue) Revenue for the period was RMB 136.7 million, a 10.9% decrease from the prior period, mainly due to fewer customer acceptance and commissioning of production lines and standalone machines, with electro-brass steel wire production line sales significantly down but standalone machine sales notably up Revenue Breakdown for the Six Months Ended June 30 (RMB thousands) | Product Category | 2025 Units Sold | 2025 Revenue (RMB thousands) | 2025 % of Total | 2024 Units Sold | 2024 Revenue (RMB thousands) | 2024 % of Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Electro-brass Steel Wire Production Line Sales | 5 | 52,615 | 38.5 | 8 | 85,221 | 55.5 | | Other Production Line Sales | 2 | 1,725 | 1.3 | 6 | 6,997 | 4.6 | | Standalone Machine Sales | 689 | 75,030 | 54.9 | 312 | 49,242 | 32.1 | | Sales of Die Repair Equipment, Parts and Accessories | Not Applicable | 4,975 | 3.6 | Not Applicable | 9,707 | 6.3 | | Rental Income | Not Applicable | 2,337 | 1.7 | Not Applicable | 2,368 | 1.5 | | **Total** | | **136,682** | **100.0** | | **153,535** | **100.0** | - The decrease in revenue was primarily due to fewer customer acceptance and commissioning of production lines and standalone machines during the current period[62](index=62&type=chunk) - Sales revenue from electro-brass steel wire production lines decreased by **RMB 32.6 million**, mainly due to a reduction in accepted sets (5 sets in 2025 vs. 8 sets in 2024)[62](index=62&type=chunk) - Standalone machine sales revenue increased by approximately **52.4%** to **RMB 75.0 million**, primarily due to higher sales volume (689 sets in 2025 vs. 312 sets in 2024)[62](index=62&type=chunk) [Gross Profit and Gross Profit Margin](index=24&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Gross profit for the period was RMB 39.3 million, a 16.2% year-on-year decrease, with the overall gross profit margin declining by 1.7 percentage points to 28.8%, mainly due to a decrease in the overall selling prices of production lines and standalone machines - Gross profit for the period was **RMB 39.3 million**, a decrease of approximately **16.2%** compared to **RMB 46.9 million** in the same period of 2024[64](index=64&type=chunk) - The overall gross profit margin decreased by approximately **1.7** percentage points to **28.8%** from **30.5%** in the same period of 2024[64](index=64&type=chunk) - The decrease in gross profit margin was primarily due to a decrease in the overall selling prices of production lines and standalone machines during the current period[64](index=64&type=chunk) [Administrative Expenses](index=25&type=section&id=Administrative%20Expenses) Administrative expenses for the period were RMB 16.7 million, a decrease of RMB 4.0 million from the prior period - Administrative expenses were **RMB 16.7 million**, a decrease of **RMB 4.0 million** compared to **RMB 20.7 million** in the same period of 2024[65](index=65&type=chunk) [Net Reversal of Impairment Loss on Financial Assets](index=25&type=section&id=Net%20Reversal%20of%20Impairment%20Loss%20on%20Financial%20Assets) The period recorded a net reversal of impairment loss on financial assets of RMB 0.7 million, primarily due to a decrease in trade receivables - The Group recorded a net reversal of impairment loss on financial assets of **RMB 0.7 million**[66](index=66&type=chunk) - This primarily resulted from a decrease in trade receivables from **RMB 294.1 million** as of December 31, 2024, to **RMB 228.1 million** as of June 30, 2025[66](index=66&type=chunk) [Other (Losses) / Gains — Net](index=25&type=section&id=Other%20%28Losses%29%20%2F%20Gains%20%E2%80%94%20Net) The period recorded other net losses of RMB 0.13 million, compared to net gains of RMB 1.9 million in the prior period, mainly due to the absence of gains from the disposal of buildings by subsidiary Haisheng Software during the period - The Group recorded other net losses of **RMB 0.13 million**, compared to other net gains of **RMB 1.9 million** in the same period of 2024[67](index=67&type=chunk) - The decrease in other net gains was primarily due to the absence of gains from the disposal of buildings by the Company's subsidiary, Haisheng Software, during the current period[67](index=67&type=chunk) [Finance Income](index=25&type=section&id=Finance%20Income) Finance income for the period was RMB 0.6 million, a significant decrease from RMB 4.1 million in the prior period, primarily due to reduced bank interest income - The Group recorded finance income of **RMB 0.6 million**, compared to finance income of **RMB 4.1 million** in the same period of 2024[68](index=68&type=chunk) - The decrease in finance income was primarily due to reduced bank interest income[68](index=68&type=chunk) [Income Tax Expense](index=25&type=section&id=Income%20Tax%20Expense) Income tax expense for the period was RMB 4.3 million, a decrease from RMB 4.9 million in the prior period, primarily due to reduced taxable income - The Group recorded income tax expense of **RMB 4.3 million**, compared to income tax expense of **RMB 4.9 million** in the same period of 2024[69](index=69&type=chunk) - The decrease in income tax expense was primarily due to reduced taxable income[69](index=69&type=chunk) [Contract Assets and Trade Receivables](index=25&type=section&id=Contract%20Assets%20and%20Trade%20Receivables) As of June 30, 2025, contract assets decreased by 8.3% to RMB 45.4 million, mainly due to a reduction in remaining unsatisfied performance obligations, while trade receivables decreased by 35.3% to RMB 148.2 million, primarily due to the collection of large receivables - Contract assets were **RMB 45.4 million**, a decrease of **8.3%** from **RMB 49.5 million** as of December 31, 2024, primarily due to a reduction in the Group's remaining unsatisfied performance obligations as of June 30, 2025[70](index=70&type=chunk) - Trade receivables were **RMB 148.2 million**, a decrease of **35.3%** from **RMB 229.1 million** as of December 31, 2024, primarily due to the collection of large receivables by the Group[70](index=70&type=chunk) [Inventories](index=26&type=section&id=Inventories) The Group's inventories decreased by 34.2% from RMB 208.2 million as of December 31, 2024, to RMB 136.9 million as of June 30, 2025, mainly due to a reduction in finished goods resulting from fewer production orders - Inventories decreased by approximately **34.2%** from **RMB 208.2 million** as of December 31, 2024, to **RMB 136.9 million** as of June 30, 2025[71](index=71&type=chunk) - This was primarily due to a reduction in finished goods resulting from fewer production orders[71](index=71&type=chunk) [Trade Payables and Bills Payable](index=26&type=section&id=Trade%20Payables%20and%20Bills%20Payable) As of June 30, 2025, trade payables and bills payable were RMB 81.6 million, a 53.4% decrease from RMB 175.0 million as of December 31, 2024, primarily due to reduced procurement during the period - Trade payables and bills payable were **RMB 81.6 million**, a decrease of **53.4%** from **RMB 175.0 million** as of December 31, 2024[72](index=72&type=chunk) - This was primarily due to reduced procurement during the period[72](index=72&type=chunk) [Cash Position and Available Funds](index=26&type=section&id=Cash%20Position%20and%20Available%20Funds) The Group maintains a robust liquidity position with no outstanding bank borrowings as of June 30, 2025; total cash and bank balances were RMB 443.2 million, the current ratio increased to 3.87 times, and the gearing ratio remained at zero - The Group maintains a robust liquidity position by funding working capital through operating cash flows, with no outstanding bank borrowings as of June 30, 2025[73](index=73&type=chunk) - As of June 30, 2025, the Group's total cash and bank balances were **RMB 443.2 million** (December 31, 2024: **RMB 424.0 million**)[73](index=73&type=chunk) - As of June 30, 2025, the Group's current ratio was **3.87 times** (December 31, 2024: **2.53 times**), with the increase primarily due to a reduction in contract liabilities[73](index=73&type=chunk) - As of June 30, 2025, the Group's gearing ratio was **zero** (December 31, 2024: **zero**)[73](index=73&type=chunk) [Material Investments](index=26&type=section&id=Material%20Investments) The Group did not make any material investments during the period - During the period, the Group did not make any material investments[74](index=74&type=chunk) [Material Acquisitions and Disposals of Assets](index=26&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Assets) The Group did not undertake any material acquisitions or disposals of subsidiaries, associates, joint ventures, or assets during the period - During the period, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, joint ventures, or assets[75](index=75&type=chunk) [Pledge of Group Assets](index=27&type=section&id=Pledge%20of%20Group%20Assets) As of June 30, 2025, cash deposits of RMB 34.2 million were pledged to banks as security for bills payable and letters of guarantee, a decrease from RMB 76.9 million as of December 31, 2024 - As of June 30, 2025, cash deposits of **RMB 34.2 million** (December 31, 2024: **RMB 76.9 million**) were pledged to banks as security for bills payable and letters of guarantee[76](index=76&type=chunk) [Future Plans for Material Investments and Expected Sources of Funds](index=27&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Expected%20Sources%20of%20Funds) The Group will continue to implement a diversified development strategy and actively seek potential investment opportunities, with no future material investment plans or expected sources of funds other than those disclosed in the prospectus as of June 30, 2025 - The Group will continue to implement a diversified development strategy and actively seek potential investment opportunities[77](index=77&type=chunk) - As of June 30, 2025, the Group had no future material investment plans or expected sources of funds, other than those disclosed in the prospectus or this announcement[77](index=77&type=chunk) [Capital Expenditure](index=27&type=section&id=Capital%20Expenditure) Capital expenditure for the period was RMB 2.5 million, a significant increase from RMB 0.4 million in the prior period, primarily related to the acquisition of machinery and tools - During the period, the Group's capital expenditure was **RMB 2.5 million** (for the six months ended June 30, 2024: **RMB 0.4 million**), primarily related to the acquisition of machinery and tools[78](index=78&type=chunk) [Properties Held for Sale](index=27&type=section&id=Properties%20Held%20for%20Sale) The Group purchased 166 residential properties in 2018, of which 14 units were sold during the period for a total consideration of approximately RMB 1.5 million, with the book value of unsold units approximately RMB 7.4 million as of June 30, 2025 - The Group purchased 166 residential units and supporting facilities at Tongxing Garden, No. 269 Guangxing Road, Kenli District, Dongying City, Shandong Province, China, in 2018[79](index=79&type=chunk) - During the period, the Group sold 14 of these residential units for a total consideration of approximately **RMB 1.5 million**[79](index=79&type=chunk) - The book value of the unsold units was approximately **RMB 7.4 million** as of June 30, 2025, representing **0.8%** of the Group's total assets[79](index=79&type=chunk) [Capital Structure](index=28&type=section&id=Capital%20Structure) The Group's capital structure remained unchanged during the period, consisting solely of ordinary shares, with no treasury shares held or sold - During the period, the Group's capital structure remained unchanged, with capital consisting solely of ordinary shares[81](index=81&type=chunk) - During the period, the Company did not hold or sell any treasury shares of the Company[81](index=81&type=chunk) [Foreign Currency Risk](index=28&type=section&id=Foreign%20Currency%20Risk) The Group primarily transacts in RMB, but some trade receivables and bank deposits are denominated in USD, exposing it to foreign currency exchange risk, where a 5% fluctuation in the USD/RMB exchange rate would impact net profit by approximately RMB 3.9 million - The Group operates in China, with most transactions denominated and settled in RMB, except for certain trade receivables and bank deposits denominated in USD, thus facing foreign currency exchange risk[82](index=82&type=chunk) - If the USD were to appreciate/depreciate by **5%** against the RMB, with all other variables remaining constant, the Group's net profit for the period would increase/decrease by approximately **RMB 3.9 million** due to various USD-denominated financial assets[82](index=82&type=chunk) [Use of Net Proceeds from Listing](index=28&type=section&id=Use%20of%20Net%20Proceeds%20from%20Listing) The net proceeds from the listing, approximately HKD 209.5 million, were primarily intended for constructing new manufacturing facilities and a new R&D center in Wuxi; this project was delayed due to changes in business development strategy and the impact of the pandemic, with approximately HKD 37.27 million of unutilized proceeds remaining as of June 30, 2025 - The net proceeds from the listing were approximately **HKD 209.5 million** (equivalent to approximately **RMB 165.3 million**)[83](index=83&type=chunk) - The proceeds were primarily used for the construction of new manufacturing facilities and a new research and development center in Wuxi, Jiangsu Province, China[84](index=84&type=chunk) Use of Net Proceeds from Listing (HKD) | Planned Use | Planned Net Proceeds from Listing | Utilized as of June 30, 2025 | Interest Income | Amount Utilized for the Year Ended June 30, 2025 | Unutilized Balance | Expected Timeline | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Funding for New Wuxi Facilities and R&D Center | 163,000,000.00 | 140,370,000.00 | 14,640,000.00 | 2,030,000.00 | 37,270,000.00 | On or before December 31, 2027 | | Development of Certain Target R&D Projects | 25,500,000.00 | 26,634,000.00 | 1,134,000.00 | — | 0.00 | | | General Working Capital and Other General Corporate Purposes | 21,000,000.00 | 21,000,000.00 | — | — | 0.00 | | | **Total** | **209,500,000.00** | **188,004,000.00** | **15,774,000.00** | **2,030,000.00** | **37,270,000.00** | | - The construction of new facilities and a new R&D center in Wuxi was delayed due to changes in business development strategy and the outbreak of COVID-19[85](index=85&type=chunk)[86](index=86&type=chunk) [Outlook](index=30&type=section&id=Outlook) Despite China-US trade friction, the Group will capitalize on the rising penetration of new energy vehicles, global rebalancing, and green manufacturing trends, guided by a strategy of "high-end, intelligent, international, and green development," driven by "overseas expansion + high-end upgrading," to increase R&D investment, promote product iteration and upgrading, and achieve sustainable development - Looking ahead, despite China-US trade friction remaining a short-term disruptive factor, the three major trends of increasing new energy vehicle penetration, global rebalancing, and green manufacturing are irreversible[87](index=87&type=chunk) - The Group will continue to adhere to "high-end, intelligent, international, and green development" as its strategic main axis, maintaining a dual-driven model of "overseas expansion + high-end upgrading"[87](index=87&type=chunk) - The Group will continue to increase R&D investment, collaborate with upstream and downstream industrial chain partners to tackle key core technologies, and continuously promote product iteration and upgrading towards smarter and greener directions[87](index=87&type=chunk) [Employees and Remuneration Information](index=30&type=section&id=Employees%20and%20Remuneration%20Information) As of June 30, 2025, the Group employed 154 full-time employees, a decrease from the prior year, with total employee remuneration for the period approximately RMB 11.8 million; the Group values talent development, with remuneration policies based on performance and qualifications, and a remuneration committee in place - As of June 30, 2025, the Group employed a total of **154** (December 31, 2024: **191**) full-time employees[88](index=88&type=chunk) - During the period, the Group's total employee remuneration was approximately **RMB 11.8 million** (for the six months ended June 30, 2024: approximately **RMB 15.4 million**), representing approximately **8.7%** of the Group's total revenue[88](index=88&type=chunk) - The Group's remuneration policy is formulated and regularly reviewed based on individual employee performance and qualifications, and a remuneration committee has been established[88](index=88&type=chunk)[89](index=89&type=chunk) [Other Information](index=31&type=section&id=Other%20Information) [Share Option Scheme](index=31&type=section&id=Share%20Option%20Scheme) As of June 30, 2025, the Company had no existing share option schemes, nor any outstanding share options or share awards granted but not yet exercised - As of June 30, 2025, the Company had no existing share option schemes, nor any outstanding share options or share awards granted but not yet exercised[90](index=90&type=chunk) [Contingent Liabilities](index=31&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[91](index=91&type=chunk) [Compliance with Corporate Governance Code](index=31&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company has adopted the Corporate Governance Code set out in Appendix C1 to the Listing Rules and has fully complied with all code provisions during the period and up to the date of this announcement - The Company has adopted the Corporate Governance Code set out in Appendix C1 to the Listing Rules and is satisfied that the Company has complied with all code provisions of the Corporate Governance Code during the period and up to the date of this announcement[92](index=92&type=chunk) [Compliance with Model Code for Securities Transactions by Directors of Listed Issuers](index=32&type=section&id=Compliance%20with%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors%20of%20Listed%20Issuers) The Company has adopted the Model Code set out in Appendix C3 to the Listing Rules, and all directors and supervisors have confirmed full compliance with the code during the period up to the date of this announcement - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 to the Listing Rules[93](index=93&type=chunk) - Following specific enquiries, each of the Company's directors and supervisors has confirmed that they have fully complied with the required standards set out in the Model Code during the period up to the date of this announcement[93](index=93&type=chunk) [Interests of Directors, Supervisors and Chief Executive in Securities](index=33&type=section&id=Interests%20of%20Directors%2C%20Supervisors%20and%20Chief%20Executive%20in%20Securities) As of June 30, 2025, Mr. Zhang Degang, Mr. Zhang Deqiang, and Ms. Zhang Jinghua, acting in concert, held beneficial and jointly held interests in the Company's domestic shares, with Mr. Zhang Degang and Mr. Zhang Deqiang also holding interests in controlled corporations Directors' Interests in the Company's Shares (as of June 30, 2025) | Director Name | Class of Shares | Number of Shares | Nature of Interest | Approximate Percentage of Relevant Class of Share Capital | Approximate Percentage of Total Issued Share Capital | | :--- | :--- | :--- | :--- | :--- | :--- | | Mr. Zhang Degang | Domestic Shares | 26,821,504 | Beneficial Owner | 27.94% | 20.96% | | | Domestic Shares | 50,410,496 | Jointly Held Interest with Other Persons | 52.51% | 39.38% | | | Domestic Shares | 4,416,000 | Interest in Controlled Corporation | 4.60% | 3.45% | | Mr. Zhang Deqiang | Domestic Shares | 29,983,104 | Beneficial Owner | 31.23% | 23.42% | | | Domestic Shares | 47,248,896 | Jointly Held Interest with Other Persons | 49.22% | 36.92% | | | Domestic Shares | 4,416,000 | Interest in Controlled Corporation | 4.60% | 3.45% | | Ms. Zhang Jinghua | Domestic Shares | 20,427,392 | Beneficial Owner | 21.28% | 15.96% | | | Domestic Shares | 61,220,608 | Jointly Held Interest with Other Persons | 63.77% | 47.83% | - Mr. Zhang Degang, Mr. Zhang Deqiang, and Ms. Zhang Jinghua are parties acting in concert, and each is deemed to have an interest in the shares held by them respectively[94](index=94&type=chunk) - Mr. Zhang Degang and Mr. Zhang Deqiang are the two general partners of Wuxi Shunxin Investment Enterprise (Limited Partnership) and are therefore deemed to have an interest in the shares held by Shunxin[94](index=94&type=chunk) [Interests and Short Positions of Substantial Shareholders](index=34&type=section&id=Interests%20and%20Short%20Positions%20of%20Substantial%20Shareholders) As far as the directors are aware, as of June 30, 2025, no person or corporation (other than the Company's directors, chief executive, or supervisors) had any disclosable interests or short positions in the Company's shares or related shares - As far as the directors are aware, as of June 30, 2025, no person or corporation (other than the Company's directors, chief executive, or supervisors) had or was deemed or taken to have any interests or short positions in the shares or underlying shares of the Company which would fall to be disclosed to the Company under the provisions of Divisions 2 and 3 of Part XV of the Securities and Futures Ordinance or which were recorded in the register required to be kept under Section 336 of the Securities and Futures Ordinance[96](index=96&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=34&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%E2%80%99s%20Listed%20Securities) During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[97](index=97&type=chunk) [Directors' Material Interests in Contracts](index=34&type=section&id=Directors%E2%80%99%20Material%20Interests%20in%20Contracts) Save as disclosed in the prospectus or above, no director had any material interest in any contract entered into by the Group that was significant to its business during the period - Save as disclosed in the prospectus or above, no director had any material interest in any contract entered into by the Company or any of its subsidiaries that was significant to the Group's business during the period[98](index=98&type=chunk) [Competing Business](index=34&type=section&id=Competing%20Business) During the period, the directors were not aware of any business or interest of the directors, controlling shareholders of the Company, and their respective close associates that competed or might compete with the Group's business - During the period, the directors were not aware of any business or interest of the directors, controlling shareholders of the Company, and their respective close associates that competed or might compete with the Group's business, or any other conflicts of interest with the Group[99](index=99&type=chunk) [Dividends](index=34&type=section&id=Dividends) The final dividend for the year ended December 31, 2024, was paid on July 18, 2025, and the directors have resolved not to recommend an interim dividend for the current period - The proposal to pay a final dividend of **RMB 0.08** per share (pre-tax) (totaling **RMB 10,240 thousand** (pre-tax)) for the year ended December 31, 2024, was approved at the annual general meeting and paid on July 18, 2025[100](index=100&type=chunk) - The directors have resolved not to recommend an interim dividend for the current period (for the six months ended June 30, 2024: nil)[101](index=101&type=chunk) [Review by Audit Committee](index=35&type=section&id=Review%20by%20Audit%20Committee) The Audit Committee has reviewed the Group's unaudited interim results and financial information for the period and discussed matters related to risk management, internal control systems, and financial reporting - The Audit Committee held a meeting to discuss the Company's risk management, internal control systems, and financial reporting matters, including reviewing the Group's unaudited interim results and unaudited condensed consolidated interim financial information for the period[102](index=102&type=chunk) [Sufficiency of Public Float](index=35&type=section&id=Sufficiency%20of%20Public%20Float) Based on publicly available information and to the best knowledge of the directors, the Company has maintained the minimum public float as prescribed by the Listing Rules up to the date of this announcement - Based on publicly available information and to the best knowledge of the directors, the Company has maintained the minimum public float as prescribed by the Listing Rules up to the date of this announcement[103](index=103&type=chunk) [Events After Reporting Period](index=35&type=section&id=Events%20After%20Reporting%20Period) No significant disclosable events occurred after June 30, 2025, up to the date of this announcement - No significant disclosable events occurred after June 30, 2025, up to the date of this announcement[104](index=104&type=chunk) [Publication of Interim Results and Interim Report](index=35&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) This announcement has been published on the HKEX website and the Company's website, and the interim report for the period, containing all relevant information, will be issued by the Company and published on the aforementioned websites - This announcement is published on the HKEX website (www.hkex.com.hk) and the Company's website (www.wxsunlit.com)[105](index=105&type=chunk) - The interim report for the period, containing all relevant information as required by Appendix D2 of the Listing Rules, will be issued by the Company and published on the aforementioned websites in accordance with the Listing Rules[105](index=105&type=chunk)

Interim Results Announcement [Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The company's unaudited interim results for H1 2025 show declines in revenue, gross profit, and profit attributable to owners Key Financial Indicators for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,572.5 | 3,956.6 | -9.7% | | Gross Profit | 538.6 | 566.4 | -4.9% | | Profit Attributable to Owners of the Company | 83.2 | 189.4 | -56.1% | [Condensed Consolidated Financial Statements](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents detailed unaudited financial data on income, profit, assets, liabilities, and equity for the six months ended June 30, 2025 [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company's revenue decreased year-on-year, with profit for the period at RMB 105,817 thousand Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 3,572,532 | 3,956,623 | | Cost of sales | (3,033,894) | (3,390,221) | | Gross profit | 538,638 | 566,402 | | Profit for the period | 105,817 | 217,914 | | Profit for the period attributable to owners of the Company | 83,184 | 189,440 | | Basic and diluted earnings per share (RMB) | 0.08 | 0.18 | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the company's total non-current assets were RMB 7,659,765 thousand and total current assets were RMB 5,086,060 thousand Summary of Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current assets | 7,659,765 | 7,553,930 | | Current assets | 5,086,060 | 4,554,412 | | Current liabilities | 5,495,691 | 5,179,498 | | Net current liabilities | (409,631) | (625,086) | | Equity attributable to owners of the Company | 4,937,590 | 4,852,828 | | Total equity | 5,393,894 | 5,300,000 | | Non-current liabilities | 1,856,240 | 1,628,844 | [Notes to the Condensed Consolidated Interim Financial Statements](index=5&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section details the basis of preparation, significant accounting policies, and breakdowns of key financial statement items and notes [General Information](index=5&type=section&id=%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) China Sunshine Paper Holdings Company Limited is incorporated in the Cayman Islands and its shares are listed on the Hong Kong Stock Exchange - The company is incorporated in the Cayman Islands with its shares listed on the Main Board of the Hong Kong Stock Exchange[8](index=8&type=chunk) - The Group's principal activities are the production/manufacturing and sale of paper products, electricity, and steam[9](index=9&type=chunk) [Basis of Preparation](index=5&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The financial statements are prepared in accordance with IAS 34 and the Listing Rules on a going concern basis despite net current liabilities - The financial statements are prepared in accordance with International Accounting Standard 34 and the Listing Rules of the Stock Exchange[10](index=10&type=chunk) - As of June 30, 2025, the Group had **net current liabilities of approximately RMB 409,631,000**, but the directors believe the company has sufficient working capital and prepared the statements on a going concern basis[10](index=10&type=chunk) [Significant Accounting Policies](index=5&type=section&id=%E9%87%8D%E5%A4%A7%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The financial statements are prepared on a historical cost basis, with certain assets measured at fair value, and a new accounting standard was adopted - The financial statements are prepared on the historical cost basis, with certain assets measured at fair value[11](index=11&type=chunk) - The adoption of the amendment to IAS 21 "Lack of Exchangeability" had **no material impact** on the Group's current or prior period results and financial position[11](index=11&type=chunk)[12](index=12&type=chunk) [Revenue](index=6&type=section&id=%E6%94%B6%E5%85%A5) In H1 2025, the Group's revenue was primarily derived from the sale of paper products and electricity and steam, totaling RMB 3,572,532 thousand Revenue by Segment | Segment | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Paper products | 3,365,539 | 3,729,815 | | Electricity and steam | 206,993 | 226,808 | | Total | 3,572,532 | 3,956,623 | Revenue by Geographical Market | Geographical Market | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | China | 3,529,053 | 3,897,881 | | Overseas | 43,479 | 58,742 | [Segment Information](index=7&type=section&id=%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group's business is divided into two operating segments, Paper Products and Electricity and Steam, for internal reporting purposes [Segment Revenue and Results](index=7&type=section&id=%E5%88%86%E9%83%A8%E6%94%B6%E5%85%A5%E5%8F%8A%E6%A5%AD%E7%B8%BE) In H1 2025, the Paper Products segment generated external revenue of RMB 3,365,539 thousand and the Electricity and Steam segment generated RMB 206,993 thousand Analysis of Segment Revenue and Profit | Segment | H1 2025 External Revenue (RMB thousand) | H1 2024 External Revenue (RMB thousand) | H1 2025 Segment Profit (RMB thousand) | H1 2024 Segment Profit (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Paper products | 3,365,539 | 3,729,815 | 449,403 | 473,528 | | Electricity and steam | 206,993 | 226,808 | 175,601 | 183,596 | | Total | 3,572,532 | 3,956,623 | 625,004 | 657,124 | [Reconciliation of Segment Profit](index=8&type=section&id=%E5%88%86%E9%83%A8%E7%9A%84%E5%88%A9%E6%BD%A4%E5%B0%8D%E8%B3%AC) The reconciliation shows the adjustments made to total segment profit to arrive at the consolidated profit before income tax Reconciliation of Segment Profit | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Segment profit | 625,004 | 657,124 | | Unrealised profit on inter-segment sales | (80,271) | (86,316) | | Other income | 79,987 | 172,264 | | Other net gains or losses | (29,125) | 20,561 | | Distribution and selling expenses | (181,185) | (186,470) | | Administrative expenses | (237,374) | (215,854) | | Reversal of/(provision for) expected credit losses on financial assets, net | 77,477 | (373) | | Loss on fair value change of investment properties | (1,215) | (74) | | Share of loss of a joint venture | (12,019) | (566) | | Finance costs | (48,531) | (76,534) | | Consolidated profit before income tax | 192,748 | 283,762 | [Other Income and Other Net Gains or Losses](index=9&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E6%88%96%E8%99%A7%E6%90%8D%E6%B7%A8%E9%A1%8D) Other income in H1 2025 was RMB 80,312 thousand, while other net gains or losses recorded a loss of RMB 5,613 thousand Details of Other Income | Other Income Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Total interest income | 30,950 | 49,019 | | Government grants | 33,894 | 114,882 | | Logistics service income | 11,618 | 5,961 | | Total other income | 80,312 | 173,152 | Details of Other Net Gains or Losses | Other Net Gains or Losses Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Net gain on sale of scrap materials | 20,883 | 16,642 | | Fair value change of financial assets at FVTPL | (83,691) | (870) | | Net exchange loss | (13,548) | (3,672) | | Sale of carbon emission allowances | 18,453 | 22,712 | | Gain on waiver of consideration payable | 29,196 | — | | Gain on step acquisition of a joint venture | 11,848 | — | | Total other net gains or losses | (5,613) | 42,707 | - Sunshine Oji became a wholly-owned subsidiary of the Company on June 26, 2025[19](index=19&type=chunk) [Finance Costs](index=10&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) Finance costs for H1 2025 decreased to RMB 60,682 thousand, mainly due to increased interest capitalization for construction in progress Details of Finance Costs | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Total interest expense | 77,439 | 94,716 | | Less: Interest capitalized in construction in progress | (16,757) | (5,989) | | Finance costs | 60,682 | 88,727 | - The annual capitalization rate for borrowing costs ranged from **4.79% to 5.34%**[20](index=20&type=chunk) [Income Tax Expense](index=10&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense for H1 2025 increased to RMB 86,931 thousand, with the effective tax rate rising to 45.1% Details of Income Tax Expense | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Current income tax (PRC Enterprise Income Tax) | 61,332 | 83,807 | | Deferred tax expense | 25,599 | (17,959) | | Expense for the period | 86,931 | 65,848 | - The effective tax rate for H1 2025 was **45.1%**, compared to 23.2% in H1 2024[48](index=48&type=chunk) [Profit Before Income Tax](index=11&type=section&id=%E9%除%E6%89%80%E5%BE%97%E7%A8%85%E5%89%8D%E5%88%A9%E6%BD%A4) Profit before income tax is stated after charging various expenses including staff costs, inventory costs, and depreciation Items Charged to Profit Before Income Tax | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Total staff costs | 266,648 | 233,552 | | Cost of inventories recognised as an expense | 2,409,957 | 2,425,845 | | Depreciation of property, plant and equipment | 221,099 | 227,147 | | Research and development expenses | 2,433 | 614 | [Dividends](index=11&type=section&id=%E8%82%A1%E6%81%AF) The company approved a final dividend for 2024 but resolved not to declare an interim dividend for H1 2025 - A final dividend for 2024 of **HK 5 cents per ordinary share**, totaling HK$53,257,000 (approximately RMB 49,316,000), was approved in H1 2025[23](index=23&type=chunk) - The Board of Directors resolved **not to declare an interim dividend** for the first half of 2025[23](index=23&type=chunk) [Earnings Per Share](index=11&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic and diluted earnings per share for H1 2025 decreased significantly to RMB 0.08 from RMB 0.18 in the prior year period Calculation of Earnings Per Share | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company (RMB thousand) | 83,184 | 189,440 | | Weighted average number of ordinary shares in issue (thousand shares) | 1,065,144 | 1,065,144 | | Basic and diluted earnings per share (RMB) | 0.08 | 0.18 | [Trade Receivables](index=12&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade receivables increased significantly to RMB 960,963 thousand, with the majority aged within 0-30 days Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 30 days | 666,439 | 418,510 | | 31 to 90 days | 219,113 | 159,846 | | 91 to 365 days | 75,411 | 53,783 | | Total | 960,963 | 632,139 | - The provision for expected credit losses on trade receivables was **RMB 28,458 thousand** at the period end[25](index=25&type=chunk) [Bills Receivable](index=13&type=section&id=%E6%87%89%E6%94%B6%E7%A5%A8%E6%93%9A) As of June 30, 2025, total bills receivable increased to RMB 216,125 thousand, with the majority maturing within 0-90 days Ageing Analysis of Bills Receivable | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 90 days | 153,300 | 89,550 | | 91 to 180 days | 62,825 | 55,352 | | 181 to 365 days | — | 71 | | Total | 216,125 | 144,973 | - As of June 30, 2025, bills receivable discounted to banks with recourse amounted to **RMB 28,597 thousand**[26](index=26&type=chunk) [Trade Payables](index=13&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, total trade payables decreased slightly to RMB 885,063 thousand, with the majority aged within 0-90 days Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 90 days | 702,257 | 738,272 | | 91 to 365 days | 106,160 | 116,559 | | Over one year | 76,646 | 68,254 | | Total | 885,063 | 923,085 | [Bills Payable](index=14&type=section&id=%E6%87%89%E4%BB%98%E7%A5%A8%E6%93%9A) As of June 30, 2025, total bills payable increased significantly to RMB 352,471 thousand, with all bills maturing within 12 months Ageing Analysis of Bills Payable | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 90 days | 204,871 | 82,890 | | 91 to 180 days | 147,600 | 86,070 | | Total | 352,471 | 168,960 | [Lease Liabilities](index=14&type=section&id=%E7%A7%9F%E8%B3%83%E8%B2%A0%E5%82%B5) As of June 30, 2025, the present value of lease liabilities was RMB 52,357 thousand, secured by the related assets Present Value Analysis of Lease Liabilities | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Present value of lease liabilities | 52,357 | 56,355 | | Amount due for settlement within 12 months | (5,173) | (5,172) | | Amount due for settlement after 12 months | 47,184 | 51,183 | - Lease liabilities are secured by the related assets[30](index=30&type=chunk) - The total cash outflow for leases during the interim period was **RMB 6,247 thousand**[30](index=30&type=chunk) [Discounted Bills Financing](index=15&type=section&id=%E8%B2%BC%E7%8F%BE%E7%A5%A8%E6%93%9A%E8%9E%8D%E8%B3%87) As of June 30, 2025, total discounted bills financing amounted to RMB 1,310,896 thousand, primarily from discounted bills receivable from subsidiaries Source of Discounted Bills Financing | Source | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Discounted bills receivable from third parties | 28,597 | 112 | | Discounted bills receivable from the Company's subsidiaries | 1,282,299 | 1,520,000 | | Total | 1,310,896 | 1,520,112 | - Bank deposits of **RMB 1,024,930,000** were pledged to the issuing banks upon obtaining the original intra-group bills[32](index=32&type=chunk) [Bank Borrowings](index=15&type=section&id=%E9%8A%80%E8%A1%8C%E5%80%9F%E6%AC%BE) In H1 2025, the Group raised new bank loans of RMB 2,311,813 thousand and repaid loans of RMB 1,891,919 thousand - In H1 2025, the Group raised new loans of **RMB 2,311,813 thousand** and repaid loans of **RMB 1,891,919 thousand**[31](index=31&type=chunk) - As of June 30, 2025, property, plant and equipment, land use rights, and investment properties with a value of **RMB 2,344,154 thousand** were pledged as security for bank borrowings[31](index=31&type=chunk) [Other Borrowings](index=16&type=section&id=%E5%85%B6%E4%BB%96%E5%80%9F%E6%AC%BE) As of June 30, 2025, total other borrowings amounted to RMB 167,766 thousand, including sale-and-leaseback obligations and funds from a partnership Details of Other Borrowings | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current: Sale-and-leaseback obligations | 68,771 | 137,513 | | Current: Partnership | 75,315 | 75,315 | | Non-current: Sale-and-leaseback obligations | 23,680 | 163 | | Total other borrowings | 167,766 | 212,991 | - A partnership injected **RMB 276,500,000** into the Group, of which **RMB 75,315,000** was recognized as other borrowings[33](index=33&type=chunk) [Share Capital](index=17&type=section&id=%E8%82%A1%E6%9C%AC) As of June 30, 2025, the issued and fully paid-up share capital consisted of 1,065,144,359 shares with a par value of HK$0.10 each Share Capital Movement | Item | Number of Shares | Share Capital (RMB thousand) | | :--- | :--- | :--- | | As at January 1, 2024 | 1,129,854,359 | 100,445 | | Repurchase and cancellation of shares | (64,710,000) | (5,864) | | As at June 30, 2025 | 1,065,144,359 | 94,581 | - The company repurchased and cancelled a portion of its ordinary shares in 2023 and 2024[34](index=34&type=chunk) [Capital Commitments](index=18&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of June 30, 2025, the Group's contracted capital expenditure totaled RMB 235,171 thousand Details of Capital Commitments | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Property, plant and equipment | 38,856 | 33,796 | | Investment cost in a partnership | 196,315 | 196,315 | | Total | 235,171 | 230,111 | [Significant Events After the Reporting Period](index=18&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A0%85) The Group had no significant events after the reporting period up to the date of this announcement - The Group had **no significant events** after the reporting period up to the date of this announcement[37](index=37&type=chunk) [Operational Review](index=19&type=section&id=%E9%81%8B%E7%87%9F%E5%9B%9E%E9%A1%A7) In H1 2025, the company navigated a challenging economic environment, resulting in lower revenue and profit despite improved management capabilities [Macroeconomic and Industry Environment](index=19&type=section&id=%E5%AE%8F%E8%A7%80%E7%B6%93%E6%BF%9F%E5%8F%8A%E8%A1%8C%E6%A5%AD%E7%92%B0%E5%A2%83) The global and domestic economies faced challenges in H1 2025, putting pressure on the paper and paper products industry - In H1 2025, the global economy faced multiple challenges, while China's manufacturing sector dealt with overcapacity and insufficient demand[38](index=38&type=chunk) Key Indicators for the Paper and Paper Products Industry | Indicator (Paper and Paper Products Industry) | Jan-Jun 2025 | Y-o-Y Change (%) | | :--- | :--- | :--- | | Total Profit | RMB 17.57 billion | -21.4% | | Operating Revenue | RMB 681.21 billion | -2.3% | [Company's Business Strategy and Performance](index=19&type=section&id=%E5%85%AC%E5%8F%B8%E7%B6%93%E7%87%9F%E7%AD%96%E7%95%A5%E8%88%87%E8%A1%A8%E7%8F%BE) The company implemented strategic initiatives focused on innovation and cost reduction, leading to improved liquidity despite lower sales volume and revenue - The company implemented a management theme of "continuous innovation, transformative breakthroughs, refined cost reduction, and solid execution"[39](index=39&type=chunk) Company's Operating Performance | Indicator | H1 2025 | H1 2024 | Y-o-Y Change (%) | | :--- | :--- | :--- | | Machine-made paper sales volume | 967,000 tons | 1,015,000 tons | -4.73% | | Operating revenue | RMB 3.57 billion | RMB 3.96 billion | -9.7% | | Profit attributable to owners of the Company | RMB 83.18 million | RMB 189.44 million | -56.1% | - The **current ratio improved to 0.93** from 0.88 at the end of 2024; the ratio of finance costs to revenue **decreased to 1.7%** from 2.2%; and the inventory turnover rate decreased to 5.08 times from 5.3 times[39](index=39&type=chunk)[40](index=40&type=chunk) [Business Outlook](index=20&type=section&id=%E6%A5%AD%E5%8B%99%E5%B1%95%E6%9C%9B) The company will focus on niche markets and product innovation to navigate intensified competition and aims to enhance efficiency through its full acquisition of Sunshine Oji - In the second half of the year, the paper industry will face severe "involution," with a trend towards optimization and differentiation among competitors[41](index=41&type=chunk) - The company will focus on niche markets, producing high-quality packaging paper and insisting on a **differentiation strategy**[41](index=41&type=chunk) - The company acquired the remaining 40% stake in Sunshine Oji to make it a **100% owned subsidiary**, aiming to improve management efficiency, create synergies, and enhance innovation in specialty paper products[41](index=41&type=chunk) [Management Discussion and Analysis](index=21&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) This section analyzes the company's financial performance in H1 2025, covering revenue, costs, profitability, expenses, and liquidity [Revenue Analysis](index=21&type=section&id=%E6%94%B6%E5%85%A5%E5%88%86%E6%9E%90) Total revenue for H1 2025 was RMB 3,572.5 million, a decrease of 9.7% year-on-year, driven by lower sales prices and volume - Total revenue for H1 2025 was **RMB 3,572.5 million**, a decrease of **9.7%** from H1 2024, mainly due to lower sales prices and volume[42](index=42&type=chunk) Sales and Gross Profit Margin by Business Segment | Business Segment | H1 2025 Sales (RMB thousand) | H1 2024 Sales (RMB thousand) | H1 2025 Gross Margin (%) | H1 2024 Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | | White-top linerboard | 671,499 | 757,880 | 17.0 | 16.5 | | Coated white-top linerboard | 817,174 | 931,273 | 14.4 | 13.8 | | Paper tube | 276,977 | 289,329 | 19.5 | 18.2 | | Specialised paper products | 819,623 | 880,807 | 9.9 | 11.2 | | Corrugating medium | 780,266 | 870,526 | 10.6 | 7.9 | | Subtotal for paper products sales | 3,365,539 | 3,729,815 | 13.4 | 12.7 | | Electricity and steam sales | 206,993 | 226,808 | 29.5 | 28.0 | | Total revenue | 3,572,532 | 3,956,623 | 15.1 | 14.3 | [Cost of Sales](index=21&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) Cost of sales for H1 2025 was RMB 3,033.9 million, a decrease of 10.5% year-on-year, in line with the decline in revenue - Cost of sales for H1 2025 was **RMB 3,033.9 million**, a decrease of **10.5%** from H1 2024, consistent with the decrease in revenue[44](index=44&type=chunk) [Gross Profit and Gross Profit Margin](index=21&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) Gross profit for H1 2025 decreased to RMB 538.6 million, but the gross profit margin increased to 15.1% from 14.3% in the prior year period Gross Profit and Gross Profit Margin Changes | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Gross Profit | 538.6 | 566.4 | | Gross Profit Margin | 15.1% | 14.3% | [Other Income and Other Net Gains or Losses](index=22&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E6%88%96%E8%99%A7%E6%90%8D%E6%B7%A8%E9%A1%8D) Other income for H1 2025 was RMB 80.3 million, while other net gains or losses recorded a loss of RMB 5.6 million - Other income for H1 2025 was **RMB 80.3 million**, primarily from interest income, government grants, and service fees[46](index=46&type=chunk) - Other net gains or losses for H1 2025 was a **loss of RMB 5.6 million**, mainly due to a fair value loss on financial assets at FVTPL (RMB 83.7 million) and a net exchange loss (RMB 13.5 million)[46](index=46&type=chunk) [Distribution and Selling Expenses](index=22&type=section&id=%E5%88%86%E9%8A%B7%E5%8F%8A%E9%8A%B7%E5%94%AE%E9%96%8B%E6%94%AF) Distribution and selling expenses for H1 2025 were RMB 181.2 million, representing an increased proportion of total revenue at 5.1% Distribution and Selling Expenses Changes | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | % of Total Revenue (2025) | % of Total Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | | Distribution and selling expenses | 181.2 | 186.5 | 5.1% | 4.7% | [Administrative Expenses](index=22&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Administrative expenses for H1 2025 increased to RMB 243.0 million, representing 6.8% of total revenue Administrative Expenses Changes | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | % of Total Revenue (2025) | % of Total Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | | Administrative expenses | 243.0 | 222.3 | 6.8% | 5.6% | [Finance Costs](index=22&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) Finance costs for H1 2025 decreased significantly by 31.6% to RMB 60.7 million, representing 1.7% of total revenue Finance Costs Changes | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | % of Total Revenue (2025) | % of Total Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | | Finance costs | 60.7 | 88.7 | 1.7% | 2.2% | [Share of Loss of a Joint Venture](index=22&type=section&id=%E5%88%86%E4%BD%94%E4%B8%80%E5%AE%B6%E5%90%88%E7%87%9F%E4%BC%81%E6%A5%AD%E8%99%A7%E6%90%8D) The company's share of loss from Sunshine Oji increased substantially to RMB 12.0 million in H1 2025 Share of Loss of a Joint Venture | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Share of loss of Sunshine Oji | 12.0 | 0.6 | [Income Tax Expense](index=22&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense for H1 2025 increased to RMB 86.9 million, with the effective tax rate rising to 45.1% Income Tax Expense and Effective Tax Rate | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Effective Tax Rate (2025) | Effective Tax Rate (2024) | | :--- | :--- | :--- | :--- | :--- | | Income tax expense | 86.9 | 65.8 | 45.1% | 23.2% | [Profit and Total Comprehensive Income](index=22&type=section&id=%E5%88%A9%E6%BD%A4%E5%8F%8A%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E7%B8%BD%E9%A1%8D) Profit attributable to owners of the Company for H1 2025 was RMB 83.2 million, a significant decrease from the prior year period Profit for the Period Attributable to Owners of the Company | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company | 83.2 | 189.4 | [Significant Investments](index=23&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) The Group did not hold any significant investments during the first half of 2025 - The Group did not hold any **significant investments** during the first half of 2025[50](index=50&type=chunk) [Significant Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=23&type=section&id=%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%90%88%E7%87%9F%E4%BC%81%E6%A5%AD%E7%9A%84%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E4%BA%8B%E9%A0%85) On June 16, 2025, the company's subsidiary acquired the remaining 40% equity interest in Sunshine Oji, making it a wholly-owned subsidiary - On June 16, 2025, the company's subsidiary Century Sunshine acquired a **40% equity interest in Sunshine Oji for RMB 85,000,000**[51](index=51&type=chunk) - Following the acquisition, Sunshine Oji became a **wholly-owned subsidiary** of the Company, and its financial results will be consolidated into the Group's statements[51](index=51&type=chunk) [Liquidity and Financial Resources](index=23&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group's operations are supported by cash from operations, bank borrowings, and credit facilities, with an improved current ratio but higher gearing [Working Capital, Gearing Ratio and Financial Resources Overview](index=23&type=section&id=%E7%87%9F%E9%81%8B%E8%B3%87%E9%87%91%E3%80%81%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E6%A6%82%E8%A6%BD) The Group funds its operations primarily through operating cash flow and borrowings, with a net gearing ratio that increased to 27.8% - The Group primarily funds its operations with cash generated from operations, bank borrowings, and credit facilities[52](index=52&type=chunk) Liquidity and Financial Resources Overview | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Restricted bank deposits, cash and bank balances | 2,567.9 | 2,697.7 | | Total debt | 4,068.3 | 3,567.6 | | Net gearing ratio | 27.8% | 16.4% | [Inventory Turnover](index=23&type=section&id=%E5%AD%98%E8%B2%A8%E9%80%B1%E8%BD%89) Inventory increased to RMB 686.9 million as of June 30, 2025, with turnover days increasing to 36 days Inventory and Turnover Days | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Inventory | 686.9 | 506.5 | Inventory Turnover Days | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Inventory turnover days | 36 days | 34 days | [Trade Receivables Turnover](index=23&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E9%80%B1%E8%BD%89) Trade receivables increased to RMB 961.0 million as of June 30, 2025, with turnover days increasing to 41 days Trade Receivables and Turnover Days | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Trade receivables | 961.0 | 632.1 | Trade Receivables Turnover Days | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Trade receivables turnover days | 41 days | 30 days | [Trade Payables Turnover](index=23&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E9%80%B1%E8%BD%89) Trade payables decreased to RMB 885.1 million as of June 30, 2025, with turnover days increasing to 54 days Trade Payables and Turnover Days | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Trade payables | 885.1 | 923.1 | Trade Payables Turnover Days | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Trade payables turnover days | 54 days | 51 days | [Current Ratio](index=23&type=section&id=%E6%B5%81%E5%8B%95%E6%AF%94%E7%8E%87) The current ratio improved to 0.93 times as of June 30, 2025, from 0.88 times at the end of 2024 Current Ratio | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current ratio | 0.93 times | 0.88 times | [Capital Expenditure](index=24&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) Capital expenditure in H1 2025 amounted to approximately RMB 429.9 million, mainly for new production line equipment and facilities - Capital expenditure in H1 2025 was approximately **RMB 429.9 million**[56](index=56&type=chunk) - It was primarily related to the acquisition of property, plant, and equipment for new production lines and the construction of supporting facilities[56](index=56&type=chunk) [Capital Commitments and Contingent Liabilities](index=24&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94%E5%8F%8A%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had contracted capital commitments of RMB 235.2 million and no contingent liabilities - As of June 30, 2025, contracted capital commitments amounted to **RMB 235.2 million**[57](index=57&type=chunk) - As of June 30, 2025, there were **no contingent liabilities**[58](index=58&type=chunk) [Pledge of Assets](index=24&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, assets with a carrying value of RMB 2,334.2 million were pledged as security for various financing arrangements - As of June 30, 2025, assets with a carrying value of **RMB 2,334.2 million** were pledged[59](index=59&type=chunk) - The pledged assets served as security for bank and other loans, discounted bills financing, bills payable, and lease liabilities[59](index=59&type=chunk) [Foreign Exchange Risk](index=24&type=section&id=%E5%8C%AF%E5%85%8C%E9%A2%A8%E9%9A%AA) The Group's foreign exchange risk at the operational level is not significant as its functional and reporting currency is the Renminbi - The Group's functional and reporting currency is the Renminbi, and its business transactions are mainly conducted in Renminbi, making operational foreign exchange risk **not significant**[60](index=60&type=chunk) - The company continuously monitors foreign exchange risk and is prepared to take hedging measures if necessary[61](index=61&type=chunk) [Notes on Financial Ratios](index=24&type=section&id=%E8%B2%A1%E5%8B%99%E6%AF%94%E7%8E%87%E9%99%84%E8%A8%BB) This section provides the calculation methodologies for key financial ratios, including turnover days, current ratio, and net gearing ratio - The calculation methods for inventory turnover days, trade receivables turnover days, trade payables turnover days, current ratio, and net gearing ratio are provided[62](index=62&type=chunk) [Corporate Governance](index=25&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The Group is committed to high standards of corporate governance and complied with all code provisions of the Corporate Governance Code in H1 2025 [Corporate Governance Practices](index=25&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F) The company is dedicated to high standards of corporate governance and complied with all relevant code provisions during H1 2025 - The company is committed to high standards of corporate governance and complied with all code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules during H1 2025[63](index=63&type=chunk) [Model Code for Securities Transactions by Directors](index=25&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company has adopted the Model Code for Securities Transactions by Directors, and all directors have confirmed their compliance - The company has adopted the Model Code for Securities Transactions by Directors, and all directors have confirmed their compliance[64](index=64&type=chunk) [Audit Committee](index=25&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Board has established an Audit Committee composed of three independent non-executive directors to oversee financial reporting and internal controls - The Audit Committee consists of **three independent non-executive directors**, with Ms. Zhang Tao as the chairwoman[65](index=65&type=chunk) - The committee's main functions are to review and supervise the financial reporting process, internal control, and risk management systems, and it has reviewed the unaudited interim financial statements for H1 2025[65](index=65&type=chunk) [Employees and Remuneration Policy](index=25&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group had approximately 4,400 employees, with staff costs totaling RMB 266.6 million for the first half of the year - As of June 30, 2025, the Group had approximately **4,400 employees**[66](index=66&type=chunk) Staff Costs | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Staff costs | 266.6 | 233.6 | - The remuneration policy aims to attract, retain, and motivate talented individuals, with compensation determined based on job nature, position, and market standards[66](index=66&type=chunk) [Interim Dividend](index=25&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board of Directors has resolved not to declare an interim dividend for the first half of 2025 - The Board of Directors has resolved **not to declare an interim dividend** for the first half of 2025[67](index=67&type=chunk) [Purchase, Sale or Redemption of Securities](index=26&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%E8%AD%89%E5%88%B8) Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's shares during H1 2025 - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's shares during H1 2025[68](index=68&type=chunk) - As of June 30, 2025, the number of treasury shares held by the company was **zero**[68](index=68&type=chunk) [Publication of Interim Report on the Stock Exchange's Website](index=26&type=section&id=%E6%96%BC%E8%81%AF%E4%BA%A4%E6%89%80%E7%B6%B2%E7%AB%99%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This announcement is available on the websites of the Stock Exchange and the company, with the full interim report to follow - This announcement has been published on the websites of the Stock Exchange and the company[69](index=69&type=chunk) - The interim report containing all information required by the Listing Rules will be dispatched to shareholders and published in due course[69](index=69&type=chunk) [Other Information](index=26&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section includes an acknowledgement from the Board and a list of the Board of Directors as of the announcement date [Acknowledgement](index=26&type=section&id=%E8%87%B4%E8%AC%9D) The Board of Directors expresses its gratitude to shareholders, business partners, and all employees for their continued support - The Board of Directors thanks shareholders, business partners, and all employees for their support[70](index=70&type=chunk) [Board of Directors](index=26&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E6%88%90%E5%93%A1) As of the announcement date, the Board of Directors comprises executive, non-executive, and independent non-executive directors - The Board of Directors includes executive, non-executive, and independent non-executive directors[72](index=72&type=chunk) - Mr. Wang Dongxing serves as the **Chairman of the Board**[71](index=71&type=chunk)[72](index=72&type=chunk)

[Financial Performance Overview](index=2&type=section&id=%E8%B2%A1%E5%8B%99%E6%A5%AD%E7%B8%BE%E6%A6%82%E8%A6%BD) The Group's H1 2025 financial results show a significant reduction in losses driven by cost efficiencies and tax credits, alongside a slight asset decline and increased net current liabilities reflecting ongoing financial challenges [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) KWG Group Holdings significantly narrowed losses in H1 2025, with revenue down 27.5% year-on-year, but pre-tax and period losses substantially reduced by 59.6% and 73.3% respectively, due to decreased costs and a tax credit | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,792,305 | 5,233,954 | -27.5% | | Gross Profit | 93,476 | 97,829 | -4.4% | | Other Income and Gains, Net | 29,689 | 509,963 | -94.2% | | Loss Before Tax | (3,161,750) | (7,819,148) | -59.6% | | Loss for the Period | (2,171,682) | (8,133,016) | -73.3% | | Loss Attributable to Owners of the Company | (2,053,365) | (8,223,670) | -75.0% | | Basic Loss Per Share | RMB (60) cents | RMB (241) cents | -75.1% | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the Group's total non-current and current assets slightly decreased, while total current liabilities increased, expanding net current liabilities to RMB 39.8 billion, with net assets and total equity both declining by 17.8% | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 73,695,025 | 75,234,188 | -2.0% | | Total Current Assets | 77,348,857 | 78,102,099 | -1.0% | | Total Current Liabilities | 117,148,780 | 115,751,563 | +1.2% | | Net Current Liabilities | (39,799,923) | (37,649,464) | +5.7% | | Net Assets | 7,510,769 | 9,136,369 | -17.8% | | Total Equity | 7,510,769 | 9,136,369 | -17.8% | [Notes to the Financial Statements](index=7&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 notes on the Group's financial statements, covering company information, accounting policies, key financial performance drivers, and significant post-reporting events [Company Information](index=7&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) K WG Group Holdings Limited is a limited liability company incorporated in the Cayman Islands, primarily engaged in property development, property investment, and hotel operations - The company's principal businesses are property development, property investment, and hotel operations[9](index=9&type=chunk)[12](index=12&type=chunk) [Basis of Preparation](index=7&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The unaudited condensed consolidated interim financial information is prepared in accordance with HKAS 34 and Appendix 16 of the HKEX Listing Rules, with significant uncertainty regarding the Group's going concern ability, despite management's plans to mitigate liquidity pressure - The financial information is prepared in accordance with HKAS 34 and Appendix 16 of the Listing Rules[10](index=10&type=chunk) [Going Concern Basis](index=7&type=section&id=%E6%8C%81%E7%BA%8C%E7%B6%93%E7%87%9F%E5%9F%BA%E7%A4%8E) The Group faces significant net losses, net current liabilities, and substantial current bank borrowings, with defaults on USD senior notes and bank loans since 2023, creating material uncertainty about its going concern ability, which management addresses through project white-list financing, offshore debt restructuring, asset disposals, and cost controls - As of June 30, 2025, the Group reported a net loss of approximately **RMB 2.172 billion**, net current liabilities of approximately **RMB 39.8 billion**, current portion of bank and other borrowings of approximately **RMB 48.172 billion**, and cash and bank balances of approximately **RMB 837 million**[11](index=11&type=chunk) - Since December 31, 2023, the Group has defaulted on principal and interest payments for certain USD-denominated senior notes and bank borrowings, triggering defaults or cross-defaults totaling approximately **RMB 46.681 billion**[11](index=11&type=chunk) - To alleviate liquidity pressure, the Group has formulated several plans, including: 33 projects being included in the project white-list, with approximately **RMB 8.6 billion** in project financing loan principal successfully extended; engaging financial and legal advisors to explore a comprehensive offshore debt restructuring plan targeting existing debt totaling approximately **USD 4.6 billion**; the 50%-owned Hong Kong Kaiyue project company successfully securing **HKD 8.2 billion** in refinancing; accelerating pre-sales and sales of properties under development and completed properties held for sale, and negotiating the disposal of entire commercial properties, hotels, urban renewal projects, and non-core properties; continuing to control administrative costs and capital expenditures; and seeking to dispose of equity interests in joint ventures or associates engaged in property development[13](index=13&type=chunk)[14](index=14&type=chunk)[15](index=15&type=chunk) [Changes in Accounting Policies](index=9&type=section&id=%E6%9C%AC%E9%9B%86%E5%9C%98%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E4%B9%8B%E8%AE%8A%E6%9B%B4) The Group adopted the revised HKFRS 21 'Lack of Exchangeability—Effects of Changes in Foreign Exchange Rates' effective January 1, 2025, which did not have a significant impact on the financial statements - Adopted the revised HKAS 21 'Lack of Exchangeability—Effects of Changes in Foreign Exchange Rates' effective January 1, 2025[17](index=17&type=chunk)[18](index=18&type=chunk) - The revision did not have a significant impact on the Group's financial statements[20](index=20&type=chunk) [Revenue, Other Income and Gains, Net, and Segment Information](index=10&type=section&id=%E6%94%B6%E5%85%A5%E3%80%81%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A%E6%B7%A8%E9%A1%8D%E4%BB%A5%E5%8F%8A%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group's H1 2025 revenue, primarily from property sales, investment property rentals, and hotel operations, decreased by 27.5% year-on-year, with property development, investment, and hotel revenues all declining, and other income and gains, net, significantly reduced by 94.2% | Revenue Source | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Property Sales | 3,072,560 | 4,421,186 | -30.5% | | Hotel Operations Revenue | 313,640 | 365,388 | -14.2% | | Total Rental Income | 406,105 | 447,380 | -9.2% | | **Total Revenue** | **3,792,305** | **5,233,954** | **-27.5%** | | Other Income and Gains, Net | 29,689 | 509,963 | -94.2% | - The Group's operating segments include property development, property investment, and hotel operations[22](index=22&type=chunk) [Finance Costs](index=13&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) The Group's H1 2025 finance costs were RMB 1.008 billion, a significant 47.3% decrease from RMB 1.911 billion in H1 2024, primarily due to a substantial increase in capitalized interest | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Interest on bank and other borrowings | 2,543,808 | 2,301,817 | +10.5% | | Interest on lease liabilities | 1,538 | 9,393 | -83.6% | | Less: Capitalized interest | (1,537,224) | (400,707) | +283.6% | | **Total Finance Costs** | **1,008,122** | **1,910,503** | **-47.3%** | [Loss Before Tax](index=14&type=section&id=%E7%A8%85%E5%89%8D%E虧%E6%90%8D) The Group's H1 2025 loss before tax narrowed significantly to RMB 3.162 billion from RMB 7.819 billion in H1 2024, mainly due to substantial reductions in cost of properties sold, cost of services provided, employee benefit expenses, and impairment losses recognized on properties under development and completed properties held for sale | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Cost of properties sold | 3,504,344 | 4,894,630 | -28.5% | | Cost of services provided | 194,485 | 241,495 | -19.5% | | Employee benefit expenses (excluding directors' and chief executive's emoluments) | 131,434 | 219,116 | -40.0% | | Impairment losses recognized on properties under development and completed properties held for sale | 255,105 | 3,917,521 | -93.5% | [Income Tax Credit / (Expense)](index=15&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E6%8A%B5%E5%85%8D%E2%88%95%EF%BC%88%E9%96%8B%E6%94%AF%EF%BC%89) The Group recorded an income tax credit of RMB 990 million in H1 2025, compared to an expense of RMB 314 million in H1 2024, primarily due to the reversal of previously accrued but no longer payable income tax expenses | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Current – PRC corporate income tax | (995,472) | 399,319 | | Current – Land appreciation tax | 24,208 | 98,662 | | Deferred | (18,804) | (184,113) | | **Total tax (credit) / expense for the period** | **(990,068)** | **313,868** | - The income tax credit was primarily due to the reversal of previously accrued but no longer payable income tax expenses[58](index=58&type=chunk) [Dividends](index=15&type=section&id=%E8%82%A1%E6%81%AF) The Board has resolved not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board has resolved not to declare any interim dividend for the six months ended June 30, 2025 (2024: nil)[34](index=34&type=chunk) [Loss Per Share Attributable to Owners of the Company](index=16&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%93%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%94%E6%AF%8F%E8%82%A1%E虧%E6%90%8D) For the six months ended June 30, 2025, both basic and diluted loss per share were RMB (60) cents, a significant narrowing from RMB (241) cents in H1 2024 | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Loss Attributable to Owners of the Company (RMB thousands) | (2,053,365) | (8,223,670) | | Weighted average number of ordinary shares in issue | 3,418,883,945 | 3,418,883,945 | | Basic and diluted loss per share | RMB (60) cents | RMB (241) cents | [Trade Receivables](index=16&type=section&id=%E6%87%89%E6%94%B6%E8%B2%BF%E6%98%93%E8%B3%AC%E6%AC%BE) As of June 30, 2025, total trade receivables amounted to RMB 294 million, with the majority (approximately 88.5%) aged within three months | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within three months | 260,004 | 260,450 | | Seven to twelve months | 726 | 5,252 | | Over one year | 32,911 | 21,841 | | **Total** | **293,641** | **287,543** | [Cash and Bank Balances](index=17&type=section&id=%E7%8F%BE%E9%87%91%E5%8F%8A%E9%8A%80%E8%A1%8C%E7%B5%90%E9%A4%98) As of June 30, 2025, cash and bank balances totaled RMB 837 million, comprising RMB 688 million in restricted cash and RMB 149 million in cash and cash equivalents | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Cash and bank balances | 837,316 | 787,445 | | Less: Restricted cash | (688,120) | (634,881) | | **Cash and cash equivalents** | **149,196** | **152,564** | [Trade and Bills Payables](index=17&type=section&id=%E6%87%89%E4%BB%98%E8%B2%BF%E6%98%93%E8%B3%AC%E6%AC%BE%E5%8F%8A%E6%87%89%E4%BB%98%E7%A5%A8%E6%93%9A) As of June 30, 2025, total trade and bills payables amounted to RMB 19.854 billion, with approximately 78.7% due within one year | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within one year | 15,623,515 | 13,807,265 | | Over one year | 4,230,981 | 5,121,139 | | **Total** | **19,854,496** | **18,928,404** | [Events After Reporting Period](index=17&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) Subsequent to the reporting period, Shandong Sunshine New World Microcredit Co Ltd filed a winding-up petition against the Company with the Hong Kong High Court on August 11, 2025, involving guaranteed outstanding principal of approximately RMB 642 million and accrued interest of approximately RMB 136 million - On August 11, 2025, Shandong Sunshine New World Microcredit Co Ltd filed a winding-up petition against the Company with the Hong Kong High Court[41](index=41&type=chunk) - The petition involves guaranteed outstanding principal of approximately **RMB 642 million** and accrued interest of approximately **RMB 136 million**[41](index=41&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section provides a comprehensive review of the Group's financial performance, liquidity, market conditions, business operations, and future outlook for the reporting period [Financial Review](index=18&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's H1 2025 revenue declined 27.5% due to business segment downturns, while cost reductions, improved administrative efficiency, and lower finance costs led to a significant narrowing of the period's loss [Revenue](index=18&type=section&id=%E6%94%B6%E5%85%A5) In H1 2025, the Group's revenue was approximately RMB 3.792 billion, a 27.5% year-on-year decrease, primarily from property sales, investment property rentals, and hotel operations, with equity-accounted revenue at RMB 5.641 billion, down 23.7% | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,792.3 | 5,234.0 | -27.5% | | Equity-accounted revenue | 5,641.4 | 7,397.7 | -23.7% | [Property Development](index=18&type=section&id=%E7%89%A9%E6%A5%AD%E9%96%8B%E7%99%BC) H1 2025 property development revenue was approximately RMB 3.073 billion, a 30.5% year-on-year decrease, driven by a 12.7% reduction in GFA delivered and a 20.4% decline in average selling price, reflecting price promotions to accelerate inventory destocking | Indicator | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Property development revenue (RMB millions) | 3,072.6 | 4,421.2 | -30.5% | | Total GFA delivered (square meters) | 348,103 | 398,698 | -12.7% | | Average selling price (RMB/square meter) | 8,827 | 11,089 | -20.4% | - The decrease in average selling price was primarily due to price promotion activities implemented to accelerate inventory destocking in response to the downturn in the real estate market[43](index=43&type=chunk) [Property Investment](index=19&type=section&id=%E7%89%A9%E6%A5%AD%E6%8A%95%E8%B3%87) H1 2025 property investment revenue was approximately RMB 406 million, a 9.2% year-on-year decrease, mainly due to reduced leasing volume amid a challenging overall economic environment | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Property investment revenue | 406.1 | 447.4 | -9.2% | - The decrease in revenue was primarily due to reduced leasing volume amid a challenging overall economic environment[45](index=45&type=chunk) [Hotel Operations](index=19&type=section&id=%E9%85%92%E5%BA%97%E7%87%9F%E9%81%8B) H1 2025 hotel operations revenue was approximately RMB 314 million, a 14.2% year-on-year decrease, mainly due to lower hotel occupancy rates amid a challenging overall economic environment | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Hotel operations revenue | 313.6 | 365.4 | -14.2% | - The decrease in revenue was primarily due to lower hotel occupancy rates amid a challenging overall economic environment[46](index=46&type=chunk) [Cost of Sales](index=19&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) H1 2025 cost of sales was approximately RMB 3.699 billion, a 28.0% year-on-year decrease, primarily due to a reduction in total GFA delivered, with both per-square-meter land and construction costs also declining | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Cost of sales | 3,698.8 | 5,136.1 | -28.0% | | Land cost per square meter (RMB) | 3,689 | 3,835 | -3.8% | | Construction cost per square meter (RMB) | 4,420 | 4,627 | -4.5% | [Gross Profit](index=20&type=section&id=%E6%AF%9B%E5%88%A9) The Group's H1 2025 gross profit was approximately RMB 93.5 million, a 4.4% year-on-year decrease, primarily due to lower total sales | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 93.5 | 97.8 | -4.4% | [Other Income and Gains, Net](index=20&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A%E6%B7%A8%E9%A1%8D) H1 2025 other income and gains, net, amounted to approximately RMB 29.7 million, a significant 94.2% year-on-year decrease | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Other income and gains, net | 29.7 | 510.0 | -94.2% | [Selling and Marketing Expenses](index=20&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E7%87%9F%E9%8A%B7%E9%96%8B%E6%94%AF) H1 2025 selling and marketing expenses were approximately RMB 342 million, a 24.6% year-on-year decrease, primarily due to reduced expenses associated with lower sales | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Selling and marketing expenses | 342.0 | 453.6 | -24.6% | [Administrative Expenses](index=20&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) H1 2025 administrative expenses were approximately RMB 642 million, a 13.9% year-on-year decrease, mainly due to cost savings from optimizing the corporate organizational structure | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Administrative expenses | 642.2 | 745.5 | -13.9% | [Other Operating Expenses](index=20&type=section&id=%E5%85%B6%E4%BB%96%E7%87%9F%E9%81%8B%E9%96%8B%E6%94%AF) H1 2025 other operating expenses were approximately RMB 255 million, a significant 93.5% decrease from RMB 3.918 billion in H1 2024, primarily due to reduced impairment losses on development properties | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Other operating expenses | 255.1 | 3,917.5 | -93.5% | [Net Fair Value Loss on Investment Properties](index=20&type=section&id=%E6%8A%95%E8%B3%87%E7%89%A9%E6%A5%AD%E5%85%AC%E5%85%81%E5%80%BC%E虧%E6%90%8D%E6%B7%A8%E9%A1%8D) H1 2025 net fair value loss on investment properties was approximately RMB 122 million, a significant 74.1% decrease from RMB 471 million in H1 2024, primarily due to reduced revaluation losses | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net fair value loss on investment properties | 122.0 | 470.9 | -74.1% | [Finance Costs](index=21&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) H1 2025 finance costs were approximately RMB 1.008 billion, a 47.3% year-on-year decrease, primarily related to borrowing costs for general corporate loans and certain senior notes, which were not capitalized | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Finance costs | 1,008.1 | 1,910.5 | -47.3% | [Share of Loss of Joint Ventures](index=21&type=section&id=%E5%88%86%E4%BD%94%E5%90%88%E7%87%9F%E4%BC%81%E6%A5%AD%E虧%E6%90%8D) H1 2025 share of loss of joint ventures was approximately RMB 874 million, a 5.4% year-on-year decrease, primarily due to reduced gross loss from changes in inter-city delivery mix | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Share of loss of joint ventures | 873.7 | 923.8 | -5.4% | [Income Tax Credit / (Expense)](index=21&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E6%8A%B5%E5%85%8D%E2%88%95%EF%BC%88%E9%96%8B%E6%94%AF%EF%BC%89) H1 2025 saw an income tax credit of approximately RMB 990 million, compared to an expense of RMB 314 million in H1 2024, primarily due to the reversal of previously accrued but no longer payable income tax expenses | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | | :--- | :--- | :--- | | Income tax credit/(expense) | 990.1 (credit) | 313.9 (expense) | [Loss for the Period](index=21&type=section&id=%E6%9C%9F%E5%85%A7%E虧%E6%90%8D) H1 2025 loss for the period was approximately RMB 2.172 billion, a significant 73.3% narrowing from RMB 8.133 billion in H1 2024 | Indicator | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Loss for the period | 2,171.7 | 8,133.0 | -73.3% | [Liquidity, Financial and Capital Resources](index=21&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) As of June 30, 2025, the Group's cash and bank balances increased slightly, but restricted cash also rose, with substantial secured borrowings and a significantly elevated gearing ratio of 958.7%, indicating high financial leverage and contingent liabilities [Cash Position](index=21&type=section&id=%E7%8F%BE%E9%87%91%E7%8B%80%E6%B3%81) As of June 30, 2025, cash and bank balances were approximately RMB 837 million, a slight increase from year-end 2024, with restricted cash of approximately RMB 688 million primarily comprising guarantee deposits for pre-sale property proceeds | Indicator | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and bank balances | 837.3 | 787.4 | +6.3% | | Restricted cash | 688.1 | 634.9 | +8.4% | [Borrowings and Pledges of the Group's Assets](index=22&type=section&id=%E5%80%9F%E8%B2%B8%E5%8F%8A%E6%9C%AC%E9%9B%86%E5%9C%98%E7%9A%84%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group had substantial bank and other loans, senior notes, and domestic corporate bonds, with approximately RMB 40.759 billion in bank and other loans and RMB 3.487 billion in domestic corporate bonds secured by Group assets, and all senior notes classified as current liabilities | Borrowing Type | June 30, 2025 (RMB millions) | | :--- | :--- | | Bank and other borrowings | 41,428.2 | | Senior notes | 27,925.4 | | Domestic corporate bonds | 3,487.4 | - Approximately **RMB 40.759 billion** in bank and other borrowings and **RMB 3.487 billion** in domestic corporate bonds are secured by the Group's assets[61](index=61&type=chunk) - All senior notes are presented as current liabilities[61](index=61&type=chunk) [Gearing Ratio](index=22&type=section&id=%E8%B2%A0%E5%80%B5%E6%AF%94%E7%8E%87) As of June 30, 2025, the gearing ratio (net borrowings divided by total equity) significantly increased to 958.7% from 789.6% at year-end 2024, indicating further increased financial leverage | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing ratio | 958.7% | 789.6% | [Foreign Exchange Fluctuation Risk](index=23&type=section&id=%E5%8C%AF%E7%8E%87%E6%B3%A2%E5%8B%95%E9%A2%A8%E9%9A%AA) The Group primarily operates in China, with most revenue and expenses denominated in RMB; despite RMB appreciation against USD and HKD in H1 2025, the Board anticipates no material adverse impact from exchange rate fluctuations on operations - The Group primarily operates in China, with most revenue and expenses denominated in RMB[64](index=64&type=chunk) - In H1 2025, the RMB appreciated against the USD and HKD, but the Board does not expect a material adverse impact on the Group's operations[64](index=64&type=chunk) [Contingent Liabilities](index=23&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%80%B5) As of June 30, 2025, the Group's contingent liabilities related to guarantees provided to banks for buyers' mortgage financing amounted to approximately RMB 9.289 billion, in addition to guarantees for bank loans of its joint ventures, associates, third parties, and related companies - As of June 30, 2025, the Group's contingent liabilities related to guarantees provided to banks for certain buyers' mortgage financing amounted to approximately **RMB 9.289 billion**[65](index=65&type=chunk) - The Group also provided guarantees for certain bank loans of its joint ventures, associates, third parties, and related companies[65](index=65&type=chunk) [Market Review](index=24&type=section&id=%E5%B8%82%E5%A0%B4%E5%9B%9E%E9%A1%A7) H1 2025 saw China's real estate market exhibit 'structural differentiation,' with core cities resilient amidst national declines in investment and sales, tight developer funding, and falling prices, leading to cautious buyer sentiment - In H1 2025, China's real estate market exhibited 'structural differentiation,' with core cities showing resilience while non-core cities remained deeply in adjustment[66](index=66&type=chunk) | Indicator (Jan-Jun 2025) | Amount/Data | YoY Change (%) | | :--- | :--- | :--- | | National real estate development investment | 4,665.8 billion RMB | -11.2% | | Commercial housing sales area | 45,851 ten thousand square meters | -3.5% | | Commercial housing sales value | 4,424.1 billion RMB | -5.5% | | Funds available to real estate development enterprises | 5,020.2 billion RMB | -6.2% | - Prices of second-hand homes in 100 cities cumulatively fell by **3.6%**, marking 38 consecutive months of decline; new home prices generally trended downwards, and buyer sentiment remained cautious[67](index=67&type=chunk) [Business Review](index=24&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group actively responded to market adjustments by prioritizing property delivery, addressing debt, and boosting sales; H1 pre-sales reached RMB 3.565 billion, with 4,900 homes delivered, while investment property and hotel revenues declined, prompting plans to enhance management and expand hotels [Overview of Property Development](index=24&type=section&id=%E7%89%A9%E6%A5%AD%E7%99%BC%E5%B1%95%E6%A6%82%E8%A6%BD) In H1, the Group achieved pre-sales of RMB 3.565 billion, with a pre-sale area of 139,700 square meters and an average pre-sale price of RMB 25,511/square meter; the Greater Bay Area contributed approximately 78% of performance, and approximately 4,900 homes were delivered, totaling about 710,000 square meters | Indicator (H1 2025) | Data | | :--- | :--- | | Pre-sales amount | RMB 3.565 billion | | Pre-sale area | 13.97 ten thousand square meters | | Average pre-sale price | RMB 25,511/square meter | | Greater Bay Area performance contribution | Approximately 78% | | Cumulative number of homes delivered | Approximately 4,900 units | | Cumulative delivery area | Approximately 71 ten thousand square meters | - Land reserve attributable GFA is **11.43 million square meters**, with an attributable interest of approximately **75%**, primarily located in high-tier cities such as Beijing, Shanghai, Guangzhou, Shenzhen, Hong Kong, and Chengdu[69](index=69&type=chunk) [Investment Properties and Hotels](index=25&type=section&id=%E6%8A%95%E8%B3%87%E6%80%A7%E7%89%A9%E6%A5%AD%E5%8F%8A%E9%85%92%E5%BA%97) The Group operates 14 shopping malls, 9 office buildings, 13 self-branded hotels, and 5 co-branded foreign hotels; H1 2025 rental income was RMB 406 million, down 9.2%, and hotel revenue was RMB 314 million, down 14.2%, prompting plans to enhance management, operational efficiency, and add two new Moliere hotels in H2 - The Group operates **14** shopping malls, **9** office buildings, **13** self-branded hotels, and **5** co-branded foreign hotels[70](index=70&type=chunk) | Indicator (H1 2025) | Amount (RMB billions) | YoY Change (%) | | :--- | :--- | :--- | | Rental income | 4.06 | -9.2% | | Hotel business revenue | 3.14 | -14.2% | - The Group plans to add two new Moliere hotels in Guangzhou and Chengdu in H2 2025[71](index=71&type=chunk) [Outlook](index=26&type=section&id=%E6%9C%AA%E4%BE%86%E5%B1%95%E6%9C%9B) H2 China real estate policy will balance 'stabilizing expectations' and 'preventing risks,' reshaping supply-demand and shifting developers to 'value creation'; KWG Group will focus on Greater Bay Area projects for recovery, cash flow, brand commitments, and full debt restructuring - In H2, policies are expected to enhance the balance between 'stabilizing expectations' and 'preventing risks,' reshaping supply-demand through long-term mechanisms such as land reserves and affordable housing construction[72](index=72&type=chunk) - The Group will adhere to three main strategies: leveraging core Greater Bay Area projects for recovery and cash flow assurance; fulfilling brand commitments through benchmark projects; and fully advancing domestic and offshore debt restructuring[72](index=72&type=chunk) [Overview of the Group's Property Development](index=26&type=section&id=%E6%9C%AC%E9%9B%86%E5%9C%98%E7%89%A9%E6%A5%AD%E7%99%BC%E5%B1%95%E6%83%85%E6%B3%81%E6%A6%82%E8%A6%BD) As of June 30, 2025, the Group owned 147 major projects (excluding residual properties) across 42 cities in mainland China and Hong Kong, primarily in high-tier cities like Guangzhou, Suzhou, Chengdu, Beijing, and Shanghai, with project types including residential, villas, serviced apartments, office buildings, commercial, and hotels - As of June 30, 2025, the Group had **147** major projects (excluding residual properties) across **42** cities in mainland China and Hong Kong[69](index=69&type=chunk)[73](index=73&type=chunk) - Project types include residential, villas, serviced apartments, office buildings, commercial, and hotels[74](index=74&type=chunk)[75](index=75&type=chunk)[76](index=76&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk)[80](index=80&type=chunk) [Employees and Remuneration Policy](index=33&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group employed approximately 1,800 staff, with total employee costs of approximately RMB 148 million in H1, and its remuneration policy is based on performance, skills, experience, and industry practice, offering discretionary bonuses, cash incentives, provident fund schemes, and training development - As of June 30, 2025, the Group employed a total of approximately **1,800** employees[81](index=81&type=chunk) | Indicator | H1 2025 (RMB millions) | | :--- | :--- | | Total employee costs | 148.1 | - Remuneration policy is determined based on performance, skills, experience, and industry practice, offering discretionary bonuses, cash incentives, provident fund schemes, and training and development[81](index=81&type=chunk)[82](index=82&type=chunk) [Corporate Governance](index=33&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The Group largely complies with the CG Code in Appendix C1 of the Listing Rules, but noted deviations include board resolutions for significant connected transactions and company secretary appointments, the Chairman's AGM absence, and non-compliance with major transaction circular dispatch rules, for which remedial actions have been taken - The Group has complied with most of the provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules[84](index=84&type=chunk) - There was a deviation from Code Provision C.5.7, where the Board approved the renewal of certain continuing connected transactions for leasing properties to Guangzhou Kaichuang by written resolution, involving a material interest of Executive Director Mr. Kong Jian Tao[84](index=84&type=chunk)[85](index=85&type=chunk) - There was a deviation from Code Provision F.1.3, as Mr. Kong Jian Min, the Chairman of the Board, was unable to attend the Annual General Meeting on June 3, 2025[87](index=87&type=chunk) - There was a deviation from Code Provision C.6.2, where the Board handled the appointment of the company secretary by written resolution instead of holding a physical board meeting[86](index=86&type=chunk)[88](index=88&type=chunk) - The Company did not comply with Listing Rule 14.41(a) regarding the dispatch of circulars for major transactions, and has taken remedial actions including engaging an independent third party to conduct an internal control review[88](index=88&type=chunk) - All Directors have confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers for the six months ended June 30, 2025[89](index=89&type=chunk) [Other Information](index=35&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section covers information on the purchase, sale, or redemption of listed securities, review by the audit committee, interim report details, and the composition of the Board of Directors [Purchase, Sale or Redemption of the Company's Listed Securities](index=35&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%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[90](index=90&type=chunk) [Review by Audit Committee](index=35&type=section&id=%E7%B6%93%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83%E5%AF%A9%E9%96%B1) The Company's Audit Committee, comprising three independent non-executive directors, has reviewed the Group's unaudited condensed consolidated interim results for the six months ended June 30, 2025 - The Company's Audit Committee has reviewed the Group's unaudited condensed consolidated interim results for the six months ended June 30, 2025[91](index=91&type=chunk) - The Audit Committee comprises three independent non-executive directors[91](index=91&type=chunk) [Interim Report](index=36&type=section&id=%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) The interim report for the six months ended June 30, 2025, containing all detailed information, will be published on the Company's website and HKEXnews website in due course, with printed copies dispatched to shareholders - The interim report for the six months ended June 30, 2025, containing all detailed information, will be published on the Company's website (www.kwggroupholdings.com) and HKEXnews website (www.hkexnews.hk)[92](index=92&type=chunk) [By Order of the Board](index=36&type=section&id=%E6%89%BF%E8%91%A3%E4%BA%8B%E6%9C%83%E5%91%BD) The Board of Directors comprises seven directors, including four executive directors and three independent non-executive directors - The Board of Directors comprises seven directors, among whom Mr. Kong Jian Min (Chairman), Mr. Kong Jian Tao (Chief Executive Officer), Mr. Kong Jian Nan, and Mr. Cai Feng Jia are executive directors; and Mr. Tam Chun Fai, Mr. Law Yiu Wing, and Ms. Wong Man Ming are independent non-executive directors[94](index=94&type=chunk)

[ALPHAMAB ONCOLOGY Interim Results Announcement for the Six Months Ended June 30, 2025](index=1&type=section&id=ALPHAMAB%20Oncology%20Interim%20Results%20Announcement) [Overview of Announcement](index=1&type=section&id=Overview%20of%20Announcement) ALPHAMAB Oncology is pleased to announce its unaudited condensed consolidated interim results for the six months ended June 30, 2025, with comparative data for the same period in 2024 [Financial Highlights](index=1&type=section&id=Financial%20Highlights) This section provides a concise overview of the company's interim financial performance and position [Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Summary%20of%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company achieved significant revenue growth, turned from loss to profit, substantially increased gross profit and total comprehensive income, despite higher R&D expenses | Indicator | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Revenue | 319,438 | 173,561 | | Cost of Sales | (31,257) | (30,807) | | Gross Profit | 288,181 | 142,754 | | Other Income | 27,211 | 39,786 | | Other Gains and Losses | (2,334) | 7,293 | | Research and Development Expenses | (253,163) | (194,531) | | Administrative Expenses | (34,375) | (34,635) | | Finance Costs | (3,945) | (5,563) | | Profit (Loss) Before Tax | 21,575 | (44,896) | | Income Tax Expense | – | – | | Profit (Loss) for the Period | 21,575 | (44,896) | | Total Comprehensive Income (Expense) for the Period | 21,876 | (44,614) | [Summary of Condensed Consolidated Statement of Financial Position](index=2&type=section&id=Summary%20of%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's current assets and net assets increased, alongside a rise in current liabilities, maintaining a stable overall asset structure | Indicator | As of June 30, 2025 (thousand RMB) | As of December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Non-current Assets | 523,765 | 530,406 | | Current Assets | 1,835,164 | 1,711,349 | | Non-current Liabilities | 135,249 | 155,827 | | Current Liabilities | 368,699 | 254,044 | | Net Assets | 1,854,981 | 1,831,884 | [Business Overview](index=2&type=section&id=Business%20Overview) This section summarizes the company's business developments, profile, product pipeline, and technology platforms [Key Business Progress During the Reporting Period](index=2&type=section&id=Key%20Business%20Progress%20During%20the%20Reporting%20Period) During the reporting period, the company achieved significant clinical research and IND application progress across multiple drug pipelines, including first patient dosing, results publication, and breakthrough therapy designations - Phase II clinical study results of KN026 combined with docetaxel for HER2+ recurrent or metastatic breast cancer have been fully published in 'Cancer Communications'[6](index=6&type=chunk) - Phase I/II clinical trial of JSKN033 for advanced metastatic malignancies completed first patient dosing, with dose escalation completed and cohort expansion ongoing; concurrently, a Phase II clinical trial for JSKN033 in HER2-mutated/expressing non-small cell lung cancer has been initiated[6](index=6&type=chunk) - JSKN003 received CDE approval to initiate a Phase III clinical trial for HER2+ breast cancer patients, with first patient dosing completed; simultaneously, a Phase III clinical trial for JSKN003 in platinum-resistant recurrent ovarian cancer also completed first patient dosing[6](index=6&type=chunk) - Full results of the Phase II clinical study of KN046 combined with lenvatinib for unresectable advanced or metastatic hepatocellular carcinoma have been published in 'Nature Communications'[7](index=7&type=chunk) - IND applications for JSKN016 combined with chemotherapy/immunotherapy/TKI for multiple cohorts in first-line and later-line NSCLC treatment received CDE approval, with dose confirmation completed; Phase II clinical trials for JSKN016 monotherapy in multiple NSCLC cohorts are ongoing[7](index=7&type=chunk) - JSKN003 received Breakthrough Therapy Designation from CDE for the treatment of platinum-resistant ovarian cancer, regardless of HER2 expression level[7](index=7&type=chunk) - Phase II/III clinical trial of KN026 combined with chemotherapy for second-line and above HER2+ gastric cancer completed its first PFS interim analysis, meeting the primary endpoint and showing an OS benefit trend[7](index=7&type=chunk) - Three Phase II clinical study results for KN035 (Envafolimab) as monotherapy or in combination were presented at the 2025 ASCO Annual Meeting, with an additional eight clinical study results published online[9](index=9&type=chunk) - JSKN003 received Orphan Drug Designation from the US FDA for gastric cancer/gastroesophageal junction cancer, and FDA approval to conduct a Phase II clinical study in the US for platinum-resistant ovarian cancer, regardless of HER2 expression level[9](index=9&type=chunk) - IND application for JSKN022 in Phase I clinical trials for advanced solid tumors has been accepted by CDE[9](index=9&type=chunk) [Company Profile and Mission](index=5&type=section&id=Company%20Profile%20and%20Mission) ALPHAMAB Oncology is a leading Chinese biopharmaceutical company focused on ADC, bispecific antibodies, and multifunctional protein engineering, committed to providing innovative biologics to global patients - The company is a leading biopharmaceutical company in China, possessing comprehensive proprietary technology platforms for ADC, bispecific antibodies, and multifunctional protein engineering[10](index=10&type=chunk) - Its mission is to provide world-class innovative therapeutic biologics to global patients by leveraging its unique drug discovery and development capabilities[10](index=10&type=chunk) [Product Pipeline](index=5&type=section&id=Product%20Pipeline) The company boasts a highly differentiated in-house pipeline covering ADCs, oncology monoclonal antibodies, and bispecific antibodies, with multiple products in Phase III or pivotal clinical trials, and KN035 already approved for market - The product pipeline comprises ADCs, oncology monoclonal antibodies, and bispecific antibodies at various R&D stages, including one product approved by the NMPA and multiple products in Phase III or pivotal clinical trials[11](index=11&type=chunk) Overview of Key Product Pipeline | Candidate Drug | Indication | Combination Therapy | IND | Phase I | Phase II | Pivotal Clinical (Phase II/III) | NDA | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | KN035 (Subcutaneous PD-L1) | ≥2L MSI-H/dMMR Advanced Solid Tumors | Monotherapy | | | | | ✅ | | KN026 (HER2/HER2 Bispecific Antibody) | 1L HER2+ BC HER2+ BC Neoadjuvant 1L HER2+ GC/GEJ | +Albumin Docetaxel +Albumin Docetaxel Planned | | | | ✅ ✅ Ongoing | | | JSKN003 (HER2 Bispecific ADC) | Later-line HER2-low BC Platinum-resistant Ovarian Cancer ≥2L HER2+ BC HER2-expressing Solid Tumors Platinum-resistant Ovarian Cancer 1 1L HER2+ GC/GEJ HER2-negative BC | Monotherapy Monotherapy Monotherapy Monotherapy Monotherapy +IO/Chemotherapy Monotherapy | | | | ✅ ✅ ✅ Ongoing Ongoing Ongoing | | | JSKN016 (HER3/TROP2 Bispecific ADC) | NSCLC NSCLC HER2-negative BC Other Advanced Solid Tumors | Monotherapy Combination Combination Monotherapy | | | Ongoing Ongoing Ongoing Ongoing | | | JSKN033 (Subcutaneous formulation of JSKN003 and KN035) | Advanced Solid Tumors HER2-mutated/expressing NSCLC | Monotherapy Monotherapy | | Ongoing Ongoing | | | | | JSKN022 (PD-L1/αvβ6 Bispecific ADC) | Advanced Solid Tumors 2 | Monotherapy | Ongoing | | | | | | KN046 (PD-L1/CTLA-4 Bispecific Antibody) | 1L Squamous NSCLC | +Chemotherapy | | | | Ongoing | | [Core Technology Platforms and Manufacturing Capabilities](index=6&type=section&id=Core%20Technology%20Platforms%20and%20Manufacturing%20Capabilities) The company possesses structure-guided protein engineering capabilities and proprietary platforms, including sdAb and CRIB, and is expanding its manufacturing facilities to exceed 40,000L total capacity, compliant with international standards - Possesses structure-guided protein engineering capabilities, enabling the development of various protein building block formats[12](index=12&type=chunk) - Proprietary platforms developed in-house include the sdAb platform, CRIB platform, glycan-specific conjugation platform, linker-payload platform, subcutaneous high-concentration formulation platform, and glycan-specific dual-payload conjugation platform[12](index=12&type=chunk) - Leading manufacturing capabilities will be further enhanced through the design and construction of new facilities compliant with NMPA, EMA, and FDA current Good Manufacturing Practice standards, with an expected total capacity exceeding **40,000L**[12](index=12&type=chunk) [Management Discussion and Analysis](index=7&type=section&id=Management%20Discussion%20and%20Analysis) This section analyzes the company's financial performance, balance sheet, liquidity, and funding sources [Financial Performance Overview](index=7&type=section&id=Financial%20Performance%20Overview) For the six months ended June 30, 2025, the company's total revenue grew to

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，並明確表示概不會就本公告全部或任何部分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。 根據不同投票權架構，我們的股本包括A類普通股及B類普通股。對於提呈我們股東大會的任 何決議案，A類普通股持有人每股可投一票，而B類普通股持有人則每股可投十票，惟法律或 《香港聯合交易所有限公司證券上市規則》或我們的組織章程大綱及細則另行規定者除外。股東 及有意投資者務請留意投資不同投票權架構公司的潛在風險。我們的美國存託股（每股美國存 託股代表三股A類普通股）於美國納斯達克全球精選市場上市，股份代號為BZUN。 Baozun Inc. 寶尊電商有限公司* （於開曼群島註冊成立以不同投票權控制的有限責任公司） 承董事會命 寶尊電商有限公司 仇文彬 主席 香港，2025年8月28日 於本公告日期，我們的董事會包括董事仇文彬先生（主席）、吳駿華先生、岡 田聡良先生、王俊博士及余濱女士；以及獨立董事Yiu Pong Chan先生、Steve Hsien-Chieng Hsia先生及葉長青先生。 * 僅供識別 （股 ...

[General Information](index=1&type=section&id=General%20Information) This announcement discloses the unaudited operating results for the six months ended June 30, 2025, with RMB as the reporting currency [Announcement Details](index=1&type=section&id=Announcement%20Details) The announcement details the unaudited but reviewed operating performance of Harbin Electric Company Limited and its subsidiaries for the first half of 2025 - This announcement discloses the unaudited but reviewed operating results of Harbin Electric Company Limited and its subsidiaries for the six months ended June 30, 2025[3](index=3&type=chunk) - All currencies discussed in the report are in **RMB**, unless otherwise specified[4](index=4&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) This section presents the consolidated financial statements, including the balance sheet, income statement, cash flow statement, and statement of changes in equity [Consolidated Balance Sheet](index=2&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2025, total assets increased by 11.76% to **RMB 80.41 billion**, with liabilities rising 14.05% to **RMB 63.59 billion**, and an asset-liability ratio of **79.08%** Consolidated Balance Sheet Key Data (As of June 30, 2025) | Metric | June 30, 2025 (RMB) | December 31, 2024 (RMB) | Change | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | **Total Assets** | 80,410,032,989.42 | 71,946,155,154.17 | +8,463,877,835.25 | +11.76% | | Total Current Assets | 67,682,918,516.57 | 60,208,795,230.03 | +7,474,123,286.54 | +12.41% | | Total Non-current Assets | 12,727,114,472.85 | 11,737,359,924.14 | +989,754,548.71 | +8.43% | | **Total Liabilities** | 63,588,484,622.91 | 55,756,293,925.45 | +7,832,190,697.46 | +14.05% | | Total Current Liabilities | 61,406,117,639.53 | 53,192,396,798.99 | +8,213,720,840.54 | +15.44% | | Total Non-current Liabilities | 2,182,366,983.38 | 2,563,897,126.46 | -381,530,143.08 | -14.88% | | **Total Shareholders' Equity** | 16,821,548,366.51 | 16,189,861,228.72 | +631,687,137.79 | +3.90% | | Total Equity Attributable to Owners of the Parent Company | 16,122,704,764.35 | 15,482,762,134.00 | +639,942,630.35 | +4.13% | | Asset-Liability Ratio | 79.08% | 77.49% | +1.59% | - | - The increase in total liabilities is primarily due to business growth and increases in **bills payable**, **accounts payable**, and **contract liabilities** (advances from customers)[81](index=81&type=chunk) [Consolidated Income Statement](index=7&type=section&id=Consolidated%20Income%20Statement) For the six months ended June 30, 2025, total operating revenue grew **31.49%** to **RMB 22.70 billion**, with net profit attributable to the parent company increasing **101.06%** to **RMB 1.05 billion** Consolidated Income Statement Key Data (January-June 2025) | Metric | January-June 2025 (RMB) | January-June 2024 (RMB) | Change | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenue | 22,696,104,178.47 | 17,260,636,497.03 | +5,435,467,681.44 | +31.49% | | Total Operating Costs | 21,442,004,500.37 | 16,640,870,337.70 | +4,801,134,162.67 | +28.85% | | Operating Profit | 1,222,779,847.09 | 694,868,031.09 | +527,911,816.00 | +76.09% | | Total Profit | 1,227,435,715.46 | 690,481,328.01 | +536,954,387.45 | +77.77% | | Net Profit | 1,056,332,627.14 | 541,073,632.84 | +515,258,994.30 | +95.23% | | Net Profit Attributable to Owners of the Parent Company | 1,050,891,055.16 | 522,667,422.32 | +528,223,632.84 | +101.06% | | Basic Earnings Per Share (RMB) | 0.47 | 0.23 | +0.24 | +104.35% | | Diluted Earnings Per Share (RMB) | 0.47 | 0.23 | +0.24 | +104.35% | - Net after-tax other comprehensive income shifted from a negative value in the prior period to a positive value, indicating a significant increase in **total comprehensive income**[12](index=12&type=chunk)[13](index=13&type=chunk)[14](index=14&type=chunk) [Consolidated Cash Flow Statement](index=12&type=section&id=Consolidated%20Cash%20Flow%20Statement) For the six months ended June 30, 2025, net cash flow from operating activities significantly improved to **RMB 3.19 billion**, driven by stronger collections Consolidated Cash Flow Statement Key Data (January-June 2025) | Metric | January-June 2025 (RMB) | January-June 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 3,192,093,533.31 | -1,430,147,768.73 | +4,622,241,302.04 | | Net Cash Flow from Investing Activities | -1,051,156,166.95 | -2,326,470.95 | -1,048,829,696.00 | | Net Cash Flow from Financing Activities | -398,946,560.54 | -676,024,063.22 | +277,077,502.68 | | Net Increase in Cash and Cash Equivalents | 1,668,743,579.33 | -2,165,912,507.45 | +3,834,656,086.78 | | Cash and Cash Equivalents at Period End | 16,842,496,950.52 | 15,198,319,600.90 | +1,644,177,349.62 | - Net cash flow from operating activities significantly increased, primarily due to the company's enhanced efforts in **accounts receivable collection**[83](index=83&type=chunk) [Consolidated Statement of Changes in Equity](index=17&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity attributable to owners of the parent company increased by **RMB 0.64 billion**, driven by higher comprehensive income Changes in Equity Attributable to Owners of the Parent Company (January-June 2025) | Metric | June 30, 2025 (RMB) | December 31, 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Total Equity Attributable to Owners of the Parent Company | 16,122,704,764.35 | 15,482,762,134.00 | +639,942,630.35 | | Other Comprehensive Income | -17,522,025.30 | -102,281,657.96 | +84,759,632.66 | | Retained Earnings | 7,364,157,846.98 | 6,823,254,033.56 | +540,903,813.42 | | Total Comprehensive Income (Attributable to Parent Company) | 1,133,298,098.08 | 504,875,133.08 | +628,422,965.00 | - Net after-tax other comprehensive income for the current period was **RMB 85,272,494.20**, compared to **RMB -17,792,289.24** in the prior period, indicating significant improvement[12](index=12&type=chunk) [Consolidated Financial Summary](index=23&type=section&id=Consolidated%20Financial%20Summary) This section provides a summary of the company's information, financial statement preparation basis, accounting policies, segment information, and key financial notes [Company Information](index=23&type=section&id=Company%20Information) Harbin Electric Company Limited, incorporated in 1994, specializes in power generation equipment and EPC, with Harbin Electric Group Co., Ltd. as its ultimate controlling entity - The company was incorporated in Harbin on **October 6, 1994**, and restructured as a Hong Kong-listed joint-stock company on **November 5, 1994**[34](index=34&type=chunk) - The company's parent company and ultimate controlling party is **Harbin Electric Group Co., Ltd**[35](index=35&type=chunk) - The company's main business involves the production and sale of power generation equipment and undertaking **EPC projects for power plants**, operating in the generator and generator set manufacturing industry[35](index=35&type=chunk) [Basis of Preparation and Compliance](index=23&type=section&id=Basis%20of%20Preparation%20and%20Compliance) Financial statements are prepared on a going concern basis, adhering to Chinese Enterprise Accounting Standards and relevant regulatory disclosure requirements - The financial statements are prepared on a **going concern basis**, in accordance with **Chinese Enterprise Accounting Standards** and relevant regulations from the **CSRC** and **HKEX**[36](index=36&type=chunk) - The company declares that the prepared financial statements comply with **Enterprise Accounting Standards**, truly and completely reflecting the financial position, operating results, and cash flows[37](index=37&type=chunk) - Chinese mainland Enterprise Accounting Standards are equivalent to **Hong Kong Financial Reporting Standards**, allowing Hong Kong-listed companies to prepare financial reports using Chinese mainland standards[37](index=37&type=chunk) [Significant Accounting Policies and Estimates](index=24&type=section&id=Significant%20Accounting%20Policies%20and%20Estimates) The fiscal year runs from January 1 to December 31, with RMB as the primary functional currency, and specific accounting policies for business combinations are detailed - The accounting period is from **January 1 to December 31** of the Gregorian calendar[38](index=38&type=chunk) - The company and most of its subsidiaries use **RMB** as their functional currency, while some Hong Kong subsidiaries use **USD**[39](index=39&type=chunk) - Detailed provisions are made for the measurement of assets and liabilities in **business combinations under common control**, and the criteria for identifying the acquisition date and treatment of merger costs in **business combinations not under common control**[40](index=40&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk) - Intermediary fees such as audit, legal services, and appraisal consulting incurred for business combinations are recognized as **current period expenses** when incurred[46](index=46&type=chunk) [Segment Information and Accounting Policy Changes](index=26&type=section&id=Segment%20Information%20and%20Accounting%20Policy%20Changes) The company's main business is segmented into four areas, with New Power Systems being the largest contributor, and new accounting standards for warranty provisions were adopted with no material profit impact - The company's main business is divided into three systems: **New Power Systems** (primarily new energy), **Clean and Efficient Industrial Systems**, **Green and Low-Carbon Drive Systems**, with the finance company and other non-core businesses as a separate segment[47](index=47&type=chunk)[51](index=51&type=chunk) - Inter-segment transfer prices are determined by **actual transaction prices**, and indirect expenses are allocated based on **revenue proportion**[48](index=48&type=chunk)[53](index=53&type=chunk) - Effective **January 1, 2024**, the company adopted **Interpretation No. 18 of Enterprise Accounting Standards**, accounting for provisions arising from warranty-type quality assurance, with no significant impact on profit[49](index=49&type=chunk) Segment Financial Information (January-June 2025) | Item | New Power Systems | Green and Low-Carbon Drive Systems | Clean and Efficient Industrial Systems | Other Businesses | Eliminations | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (Million RMB) | 15,900.85 | 170.76 | 2,287.26 | 6,099.17 | -1,761.94 | 22,696.10 | | Net Profit (Million RMB) | 1,129.01 | 12.12 | 162.40 | 433.06 | -680.26 | 1,056.33 | | Total Assets (Million RMB) | 79,265.51 | 851.22 | 11,401.98 | 30,404.29 | -41,512.97 | 80,410.03 | | Total Liabilities (Million RMB) | 61,110.91 | 656.26 | 8,790.53 | 23,440.64 | -30,409.85 | 63,588.48 | [Notes to Consolidated Financial Statements](index=29&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section details management expenses, impairment losses, dividends, EPS, income tax, and accounts receivable/payable, noting increases in expenses and receivables, and a significant rise in EPS Management Expenses Details (January-June 2025) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Staff Remuneration | 381,714,576.48 | 325,677,609.51 | +56,036,966.97 | +17.21% | | Depreciation and Amortization | 109,964,713.77 | 97,759,883.59 | +12,204,830.18 | +12.48% | | Total | 758,385,864.32 | 658,448,508.09 | +99,937,356.23 | +15.18% | Credit Impairment Losses (January-June 2025) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change | | :--- | :--- | :--- | :--- | | Bad Debt Losses | -164,647,350.97 | 15,629,160.48 | -180,276,511.45 | | Impairment Losses on Other Debt Investments | -31,838,347.50 | 0.00 | -31,838,347.50 | | Total | -196,485,698.47 | 15,629,160.48 | -212,114,858.95 | Asset Impairment Losses (January-June 2025) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change | | :--- | :--- | :--- | :--- | | Inventory Impairment Losses | -30,870,653.12 | -7,373,314.31 | -23,497,338.81 | | Contract Asset Impairment Losses | -62,094,275.36 | -74,578,741.05 | +12,484,465.69 | | Fixed Asset Impairment Losses | -309,873.46 | 0.00 | -309,873.46 | | Total | -93,274,801.94 | -81,952,055.36 | -11,322,746.58 | - The Board of Directors does not recommend the distribution of an **interim dividend** for the six months ended June 30, 2025[56](index=56&type=chunk)[97](index=97&type=chunk) - The company and some subsidiaries enjoy a **15% preferential income tax rate** as high-tech enterprises, while other Chinese subsidiaries pay **25%**[58](index=58&type=chunk)[90](index=90&type=chunk) - As of June 30, 2025, total accounts receivable amounted to **RMB 9.39 billion**, with bad debt provisions of **RMB 4.05 billion**, resulting in a net amount of **RMB 5.34 billion**[61](index=61&type=chunk)[62](index=62&type=chunk) - The net amount of bad debt provisions accrued, reversed, or recovered in the current period was **RMB 0.102 billion**, with no actual write-offs of accounts receivable during the period[65](index=65&type=chunk)[66](index=66&type=chunk) - As of June 30, 2025, total accounts payable amounted to **RMB 19.51 billion**, representing a **17.75% increase** from the beginning of the period[68](index=68&type=chunk) [Industry Development and Business Review](index=35&type=section&id=Industry%20Development%20and%20Business%20Review) In H1 2025, the company achieved significant performance growth, with substantial increases in revenue, net profit, contract signings, and export orders, driven by accelerated green energy transition and increased R&D investment - In H1 2025, national newly installed power generation capacity reached **293.32 million kilowatts**, with wind and solar power accounting for **89.9%** of the total new capacity[70](index=70&type=chunk) H1 2025 Operating Performance Overview | Metric | H1 2025 (RMB) | YoY Growth | | :--- | :--- | :--- | | Operating Revenue | 22.474 billion | +31.86% | | Net Profit Attributable to Owners of Parent Company | 1.051 billion | +101.06% | | Earnings Per Share | 0.47 | +0.24 | | Formal Contract Signing Amount | 35.561 billion | +36.64% | | Export Orders | 11.874 billion | +945.25% | - Formal contract signing amounts for **EPC and trade** and **export orders** significantly increased, primarily due to the official commencement of a large-scale EPC project in the **Saudi Arabia region**[74](index=74&type=chunk) - The company produced **20.12 million kilowatts** of power generation equipment, a **39.05% year-on-year increase**[75](index=75&type=chunk) - Export revenue was **RMB 4.01 billion**, accounting for **17.83% of operating revenue**, primarily to **Asian regions**[76](index=76&type=chunk) - Gross profit margin was **12.05%**, an increase of **0.70 percentage points year-on-year**, mainly due to higher gross profit margins for **nuclear and hydropower products**[78](index=78&type=chunk)[79](index=79&type=chunk) - Total period expenses amounted to **RMB 1.58 billion**, an increase of **RMB 0.12 billion year-on-year**, with increases in **management and R&D expenses**[80](index=80&type=chunk) - Total assets were **RMB 80.41 billion**, an **11.76% increase**; total liabilities were **RMB 63.59 billion**, a **14.05% increase**, with an asset-liability ratio of **79.08%**[81](index=81&type=chunk) - Monetary funds amounted to **RMB 17.91 billion**, an **11.62% increase**[83](index=83&type=chunk) - Completed **fixed asset investments of RMB 0.48 billion**, primarily for enhancing **nuclear power** and **pumped-storage hydropower capacity** and technological upgrades[85](index=85&type=chunk) - The company entered into capital increase agreements with Jiadian Co., Ltd. and Dongzhuang Co., Ltd., increasing capital in Dongzhuang Co., Ltd., which resulted in a **9.58% reduction** in the company's shareholding percentage[86](index=86&type=chunk) - To manage exchange rate fluctuation risks, the company signed **forward foreign exchange settlement contracts** for a portion of future foreign currency receivables from overseas projects[87](index=87&type=chunk) - All **2023 raised funds** have been fully utilized according to their planned purposes and schedule[88](index=88&type=chunk)[89](index=89&type=chunk) - R&D investment increased by **62.87% year-on-year** in H1, with an R&D intensity of **4.41%**, achieving significant technological breakthroughs in areas such as **gas turbines, hydro turbines, nuclear steam turbine retrofits, waste incineration boilers, and compressed air energy storage power stations**[92](index=92&type=chunk)[93](index=93&type=chunk) - As of June 30, 2025, the company had **11,143 employees**, with total remuneration of **RMB 1.03 billion**, and implemented a **stock appreciation rights incentive plan**[94](index=94&type=chunk) [Outlook](index=43&type=section&id=Outlook) The company anticipates significant growth in new energy capacity in 2025 and plans to enhance profitability, innovation, and operational efficiency to deliver better shareholder returns - National newly installed power generation capacity is expected to exceed **500 million kilowatts** in 2025, with new energy generation accounting for approximately **400 million kilowatts**[98](index=98&type=chunk) - The company will focus on serving national strategies, prioritizing **efficiency and effectiveness**, deepening quality and efficiency improvements, and enhancing **profitability and cost competitiveness**[99](index=99&type=chunk) - The company will adhere to **technological innovation** to foster new productive forces, comprehensively enhance the overall effectiveness of its innovation system, continuously increase funding, and advance breakthroughs in **key core technologies**[99](index=99&type=chunk) - The company will deepen reforms, optimize resource allocation, and strategically plan investment scale and structure to enhance investment efficiency, focusing on **technological innovation, industrial upgrading, and digital transformation**[99](index=99&type=chunk) [Shareholder and Governance Information](index=44&type=section&id=Shareholder%20and%20Governance%20Information) As of June 30, 2025, total share capital was **2.24 billion shares**, with Harbin Electric Group Co., Ltd. as the largest shareholder; the company adheres to governance codes, and recent board changes include a new Chairman Major Shareholders' Equity Interests (As of June 30, 2025) | Shareholder Name | Share Class | Number of Shares | Capacity | Percentage of Relevant Class of Share Capital | Percentage of Total Share Capital | | :--- | :--- | :--- | :--- | :--- | :--- | | Harbin Electric Group Co., Ltd. | State-owned Legal Person Shares | 1,560,705,000 | Beneficial Owner | 100% | 69.79% | - As of June 30, 2025, none of the company's directors, supervisors, senior management, or their associates held any **equity interests or short positions** in the company or its associated corporations[102](index=102&type=chunk) - The company complies with the provisions of Appendix C3 'Model Code for Securities Transactions by Directors of Listed Issuers' and Appendix C1 'Corporate Governance Code' of the **Listing Rules**[103](index=103&type=chunk)[107](index=107&type=chunk) - 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**[104](index=104&type=chunk) - The company provided guarantees totaling **RMB 0.303 billion** to its subsidiaries, with no external guarantees provided to third parties[105](index=105&type=chunk) - The company has **RMB 0.29 billion** in pledged assets for working capital loans, a significant increase from **RMB 84.88 million** as of June 30, 2024[106](index=106&type=chunk) - On **July 9, 2025**, Mr. Cao Zhian resigned as Executive Director and Chairman, and Mr. Huang Wei was elected Chairman, also resigning from his position as President[107](index=107&type=chunk) - The Audit Committee has reviewed and approved the company's **interim results report** for the six months ended June 30, 2025[108](index=108&type=chunk) - ShineWing Certified Public Accountants (Special General Partnership), the auditor, has reviewed the **interim results report**[109](index=109&type=chunk)

[Interim Results Highlights and Financial Overview](index=1&type=section&id=Interim%20Results%20Highlights%20and%20Financial%20Overview) [Performance Summary](index=1&type=section&id=Performance%20Summary) The Group's H1 2025 revenue slightly decreased by 0.2% YoY, but it achieved profitability with a significant increase in profit attributable to equity holders and positive basic earnings per share. The Board recommended no interim dividend Key Financial Data for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 83,280 | 83,470 | -0.2% | | Profit/(Loss) Attributable to Equity Holders | 1,360 | (2,018) | Turned loss into profit | | Basic Earnings/(Loss) Per Share | 0.172 RMB | (0.239) RMB | Turned loss into profit | - The Board recommended no interim dividend for the six months ended June 30, 2025[2](index=2&type=chunk) [Condensed Consolidated Income Statement](index=2&type=section&id=Condensed%20Consolidated%20Income%20Statement) In H1 2025, the Group's revenue slightly decreased, but effective control over cost of sales, administrative expenses, and finance costs, coupled with significant growth in investment and other income and share of results of associates, led to a substantial increase in profit for the period and a return to profitability Condensed Consolidated Income Statement (For the six months ended June 30) | Indicator (RMB thousand) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | 83,279,904 | 83,470,594 | -0.23% | | Cost of Sales | (67,299,968) | (70,217,099) | 4.16% (Decrease) | | Gross Profit | 15,979,936 | 13,253,495 | 20.57% (Growth) | | Investment and Other Income, Net | 2,053,943 | 1,183,823 | 73.50% (Growth) | | Administrative Expenses | (8,934,012) | (9,913,658) | 9.88% (Decrease) | | Finance Costs, Net | (2,286,152) | (2,441,944) | 6.38% (Decrease) | | Share of Results of Associates | 680,218 | 340,979 | 99.49% (Growth) | | Profit/(Loss) for the Period | 3,964,811 | (292,353) | Turned loss into profit | | Profit/(Loss) Attributable to Equity Holders of the Company | 1,360,196 | (2,017,616) | Turned loss into profit | | Basic Earnings/(Loss) Per Share | 0.172 | (0.239) | Turned loss into profit | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) In H1 2025, the Group's total comprehensive income for the period significantly increased, primarily due to a substantial improvement in profit for the period and a shift from exchange loss to gain Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Indicator (RMB thousand) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Profit/(Loss) for the Period | 3,964,811 | (292,353) | Turned loss into profit | | Exchange Differences | 85,489 | (63,817) | From loss to profit | | Total Comprehensive Income/(Expense) for the Period | 4,050,790 | (327,342) | Turned loss into profit | | Total Comprehensive Income/(Expense) Attributable to Equity Holders of the Company | 1,384,674 | (2,049,671) | Turned loss into profit | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets and liabilities both increased, but net assets slightly decreased. Non-current assets maintained stable growth, while inventories and trade and other receivables within current assets significantly rose. Borrowings in current liabilities substantially increased, leading to an expanded net current liabilities Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator (RMB thousand) | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Total Non-current Assets | 352,332,350 | 349,967,814 | 0.68% (Growth) | | Total Current Assets | 153,407,898 | 144,039,462 | 6.50% (Growth) | | Inventories | 21,566,677 | 16,951,294 | 27.22% (Growth) | | Trade and Other Receivables (Current) | 95,270,468 | 87,592,581 | 8.76% (Growth) | | **Liabilities** | | | | | Total Current Liabilities | 201,713,875 | 181,463,328 | 11.16% (Growth) | | Borrowings - repayable within one year | 102,530,326 | 82,128,645 | 24.84% (Growth) | | Net Current Liabilities | (48,305,977) | (37,423,866) | 29.08% (Expanded) | | Total Non-current Liabilities | 111,249,434 | 118,016,063 | -5.65% (Decrease) | | **Equity** | | | | | Net Assets | 192,776,939 | 194,527,885 | -0.90% (Decrease) | | Equity Attributable to Equity Holders of the Company | 100,170,879 | 103,121,124 | -2.86% (Decrease) | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [General Information and Basis of Preparation](index=7&type=section&id=General%20Information%20and%20Basis%20of%20Preparation) The company was established in China in 2005 and listed in Hong Kong in 2006, primarily engaged in the production and sale of basic building materials, new materials, and the provision of engineering technical services. The condensed consolidated financial statements are prepared in accordance with the HKEX Listing Rules and IAS 34, with the first-time application of IAS 21 amendments having no significant impact - The company's principal activities are the operation, production, and sale of basic building materials and new materials, and the provision of engineering technical services[9](index=9&type=chunk) - The condensed consolidated financial statements are prepared in accordance with the applicable disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and International Accounting Standard 34 "Interim Financial Reporting"[12](index=12&type=chunk) - The first-time application of the amendments to IAS 21 "Lack of Exchangeability" had no significant impact on the financial position and performance for the current interim period[14](index=14&type=chunk) [Segment Information](index=8&type=section&id=Segment%20Information) The Group is divided into five operating segments: Cement, Ready-Mixed Concrete, New Materials, Engineering Technical Services, and Others. Segment performance is disclosed using profit before interest, tax, depreciation, and amortization (EBITDA), which management believes better assesses each segment's operations [Segment Performance H1 2025](index=9&type=section&id=Segment%20Performance%20H1%202025) External Sales Revenue and Adjusted EBITDA by Segment for H1 2025 | Segment | External Sales Revenue (RMB thousand) | Adjusted EBITDA (RMB thousand) | | :--- | :--- | :--- | | Cement | 26,470,904 | 6,114,992 | | Ready-Mixed Concrete | 10,470,899 | 699,716 | | New Materials | 26,683,265 | 5,567,788 | | Engineering Technical Services | 17,364,316 | 2,003,782 | | Others | 2,290,520 | 126,220 | | **Total** | **83,279,904** | **14,512,498** | [Segment Assets and Liabilities H1 2025](index=10&type=section&id=Segment%20Assets%20and%20Liabilities%20H1%202025) Segment Assets and Liabilities as of June 30, 2025 | Segment | Segment Assets (RMB thousand) | Segment Liabilities (RMB thousand) | | :--- | :--- | :--- | | Cement | 232,098,324 | 140,048,814 | | Ready-Mixed Concrete | 48,307,476 | 22,606,396 | | New Materials | 92,484,222 | 41,018,258 | | Engineering Technical Services | 41,836,622 | 34,173,177 | | Others | 7,773,842 | 6,914,836 | | **Total** | **422,500,486** | **244,761,481** | [Segment Performance H1 2024](index=11&type=section&id=Segment%20Performance%20H1%202024) External Sales Revenue and Adjusted EBITDA/(Loss) by Segment for H1 2024 | Segment | External Sales Revenue (RMB thousand) | Adjusted EBITDA/(Loss) (RMB thousand) | | :--- | :--- | :--- | | Cement | 29,486,704 | 3,287,340 | | Ready-Mixed Concrete | 10,954,853 | 322,816 | | New Materials | 23,374,031 | 4,852,614 | | Engineering Technical Services | 16,125,785 | 1,850,736 | | Others | 3,529,221 | (414,564) | | **Total** | **83,470,594** | **9,898,942** | [Segment Assets and Liabilities FYE 2024](index=12&type=section&id=Segment%20Assets%20and%20Liabilities%20FYE%202024) Segment Assets and Liabilities as of December 31, 2024 | Segment | Segment Assets (RMB thousand) | Segment Liabilities (RMB thousand) | | :--- | :--- | :--- | | Cement | 229,610,948 | 138,759,882 | | Ready-Mixed Concrete | 47,754,612 | 20,392,785 | | New Materials | 85,134,943 | 38,200,200 | | Engineering Technical Services | 40,249,872 | 32,461,196 | | Others | 7,252,692 | 7,196,107 | | **Total** | **410,003,067** | **237,010,170** | [Reconciliation of Profit Before Income Tax](index=13&type=section&id=Reconciliation%20of%20Profit%20Before%20Income%20Tax) Reconciliation of Profit Before Income Tax (For the six months ended June 30) | Indicator (RMB thousand) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Segment Profit (EBITDA) | 14,512,498 | 9,898,942 | 46.61% (Growth) | | Operating Profit | 6,736,897 | 2,435,151 | 176.65% (Growth) | | Profit Before Income Tax | 5,125,453 | 327,196 | 1466.67% (Growth) | - The Group's five operating segments for the period are Cement, Ready-Mixed Concrete, New Materials, Engineering Technical Services, and Others[15](index=15&type=chunk) - Segment performance is disclosed as profit/(loss) before interest, tax, depreciation, and amortization[16](index=16&type=chunk) - Demand for cement products is typically higher in the second half of the year than in the first half, resulting in generally lower operating revenue and performance for the Group in the first half[16](index=16&type=chunk) [Investment and Other Income, Net](index=14&type=section&id=Investment%20and%20Other%20Income,%20Net) In H1 2025, the Group's net investment and other income significantly increased by 73.5%, primarily driven by higher government grants (especially VAT refunds), gains from disposal of subsidiaries and associates' interests, and a shift from fair value decrease to increase for financial assets at fair value through profit or loss Investment and Other Income, Net (For the six months ended June 30) | Income Source (RMB thousand) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Government Grants (Total) | 997,004 | 1,083,999 | -8.02% (Decrease) | | - VAT Refunds | 359,073 | 254,781 | 40.93% (Growth) | | Gain/(Loss) on Disposal of Subsidiaries, Net | 16,425 | (3,748) | From loss to profit | | Gain on Partial Disposal of Interests in Associates | 51,987 | – | New | | Net Fair Value Increase/(Decrease) of Financial Assets at FVTPL | 104,954 | (580,717) | From decrease to increase | | **Total** | **2,053,943** | **1,183,823** | **73.50% (Growth)** | - Government grants primarily include VAT refunds (to encourage comprehensive utilization of natural resources) and local government subsidies (to encourage development and contribution to the local economy)[27](index=27&type=chunk) [Finance Costs, Net](index=15&type=section&id=Finance%20Costs,%20Net) In H1 2025, the Group's net finance costs decreased by 6.38% YoY, mainly due to lower interest expenses on bank borrowings and bonds, and a decrease in interest income from bank deposits Finance Costs, Net (For the six months ended June 30) | Indicator (RMB thousand) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Interest Expense (Total) | 2,594,920 | 2,824,836 | -8.00% (Decrease) | | - Interest on Bank Borrowings | 1,877,673 | 2,037,573 | -7.85% (Decrease) | | - Interest on Bonds and Other Borrowings | 812,321 | 891,546 | -8.89% (Decrease) | | Interest Income (Total) | (308,768) | (382,892) | -19.49% (Decrease) | | - Interest on Bank Deposits | (203,624) | (301,237) | -32.39% (Decrease) | | **Finance Costs, Net** | **2,286,152** | **2,441,944** | **-6.38% (Decrease)** | [Components of Profit Before Income Tax](index=15&type=section&id=Components%20of%20Profit%20Before%20Income%20Tax) In H1 2025, the Group's total depreciation and amortization increased, while inventories expensed and staff costs decreased. Notably, a net exchange gain replaced last year's net loss Items Deducted From/(Credited To) Profit Before Income Tax (For the six months ended June 30) | Indicator (RMB thousand) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Depreciation and Amortization | 7,927,275 | 7,606,958 | 4.21% (Growth) | | Inventories Expensed | 54,405,964 | 62,516,797 | -13.06% (Decrease) | | Staff Costs | 10,312,502 | 10,585,358 | -2.58% (Decrease) | | Net Exchange (Gain)/Loss | (155,628) | 240,395 | From loss to profit | - There was no goodwill impairment loss in H1 2025, compared to RMB4,685 thousand in H1 2024[29](index=29&type=chunk) [Income Tax Expense](index=16&type=section&id=Income%20Tax%20Expense) In H1 2025, the Group's income tax expense significantly increased YoY, primarily due to higher current income tax expense, despite a decrease in deferred income tax credit. Management assessed no top-up tax is payable under Pillar Two rules Income Tax Expense (For the six months ended June 30) | Indicator (RMB thousand) | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Current Income Tax Expense | 1,266,671 | 946,009 | 33.89% (Growth) | | Deferred Income Tax Credit | (106,029) | (326,460) | -67.59% (Decrease) | | **Income Tax Expense** | **1,160,642** | **619,549** | **87.34% (Growth)** | - China income tax is calculated at **25%**, with some subsidiaries enjoying a **15%** preferential tax rate or exemptions[30](index=30&type=chunk) - The Group's management believes that the estimated effective tax rate in all jurisdictions where it operates is above **15%**, thus no top-up tax is required under Pillar Two rules[30](index=30&type=chunk) [Dividends](index=16&type=section&id=Dividends) In H1 2025, the company declared and paid a final dividend of **RMB0.158 per share**, totaling approximately **RMB1,199.70 million**, a decrease from the prior year. The Board recommended no interim dividend Dividends (For the six months ended June 30) | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Final Dividend Declared (Per Share) | RMB0.158 | RMB0.229 | -30.99% (Decrease) | | Final Dividend Declared (Total) | RMB1,199,697 thousand | RMB1,931,562 thousand | -37.89% (Decrease) | - The Board recommended no interim dividend for the six months ended June 30, 2025[33](index=33&type=chunk) [Earnings/(Loss) Per Share](index=17&type=section&id=Earnings/(Loss)%20Per%20Share) In H1 2025, basic earnings per share attributable to equity holders of the company were **RMB0.172**, turning a loss into profit, compared to a basic loss per share of **RMB0.239** in the prior period Earnings/(Loss) Per Share - Basic and Diluted (For the six months ended June 30) | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Profit/(Loss) Attributable to Equity Holders of the Company (RMB thousand) | 1,360,196 | (2,017,616) | Turned loss into profit | | Basic Earnings/(Loss) Per Share (RMB) | 0.172 | (0.239) | Turned loss into profit | | Weighted Average Number of Ordinary Shares in Issue (thousand shares) | 7,918,560 | 8,434,771 | -6.00% (Decrease) | - The Group had no potentially dilutive ordinary shares outstanding during both periods, thus no adjustments were made in calculating diluted earnings/(loss) per share[34](index=34&type=chunk) [Trade and Other Receivables](index=17&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, the Group's total trade and other receivables increased to **RMB97,805 million**, primarily driven by growth in trade receivables and contract assets. The aging analysis of trade receivables shows increases in amounts due within two months and over two to three years Trade and Other Receivables (As of June 30, 2025) | Indicator (RMB thousand) | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Trade Receivables (Net of Allowance for Credit Losses) | 54,992,702 | 47,530,229 | 15.70% (Growth) | | Bills Receivable | 9,075,160 | 11,671,177 | -22.24% (Decrease) | | Contract Assets | 10,410,209 | 8,764,769 | 18.77% (Growth) | | Other Receivables, Deposits and Prepayments | 23,327,168 | 22,831,448 | 2.17% (Growth) | | **Total** | **97,805,239** | **90,797,623** | **7.72% (Growth)** | Aging Analysis of Trade Receivables (As of June 30, 2025) | Aging of Trade Receivables (RMB thousand) | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Within 2 months | 13,919,002 | 6,519,099 | 113.52% (Growth) | | Over 2 months but within 1 year | 21,527,982 | 21,822,297 | -1.35% (Decrease) | | 1 to 2 years | 10,840,698 | 11,534,849 | -6.02% (Decrease) | | 2 to 3 years | 5,350,561 | 4,631,271 | 15.53% (Growth) | | Over 3 years | 3,354,459 | 3,022,713 | 10.98% (Growth) | - The Group generally grants credit periods of 60 to 180 days to trade customers, while customers in the engineering technical services segment typically have credit periods ranging from 1 to 2 years[35](index=35&type=chunk) [Trade and Other Payables](index=18&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, the Group's total trade and other payables slightly decreased, mainly due to reductions in bills payable and other payables, offset by increases in trade payables and contract liabilities Trade and Other Payables (As of June 30, 2025) | Indicator (RMB thousand) | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Trade Payables | 47,328,206 | 46,360,344 | 2.09% (Growth) | | Bills Payable | 12,085,803 | 13,181,420 | -8.31% (Decrease) | | Contract Liabilities | 11,131,738 | 10,597,139 | 5.04% (Growth) | | Other Payables | 19,813,966 | 21,240,934 | -6.72% (Decrease) | | **Total** | **90,359,713** | **91,379,837** | **-1.12% (Decrease)** | - Credit periods for purchased products and services from suppliers range from 30 to 365 days, and bills payable have an aging within six months[38](index=38&type=chunk) [Business Operations Analysis](index=19&type=section&id=Business%20Operations%20Analysis) [Summary of Key Business Data](index=19&type=section&id=Summary%20of%20Key%20Business%20Data) The Group's segments showed mixed performance in H1 2025. Basic building materials generally saw lower sales volumes but recovering average selling prices, while new materials exhibited diversification with significant growth in sales volume and average selling prices for some products. Engineering services revenue maintained stable growth [Basic Building Materials Segment](index=19&type=section&id=Basic%20Building%20Materials%20Segment) Key Business Data for Basic Building Materials Segment (For the six months ended June 30) | Indicator | H1 2025 | H1 2024 | Growth Rate | | :--- | :--- | :--- | :--- | | Total Cement Clinker Sales Volume (thousand tons) | 97,779 | 113,844 | -14.1% | | Average Selling Price of Cement Clinker (RMB/ton) | 249.8 | 241.1 | 3.6% | | Ready-Mixed Concrete Sales Volume (thousand cubic meters) | 35,133 | 35,205 | -0.2% | | Average Selling Price of Ready-Mixed Concrete (RMB/cubic meter) | 298.2 | 312.0 | -4.4% | | Aggregates Sales Volume (thousand tons) | 62,965 | 64,224 | -2.0% | | Average Selling Price of Aggregates (RMB/ton) | 36.3 | 36.7 | -1.1% | [New Materials Segment](index=20&type=section&id=New%20Materials%20Segment) Key Business Data for New Materials Segment (For the six months ended June 30) | Product | H1 2025 Sales Volume | H1 2024 Sales Volume | Sales Volume Growth Rate | H1 2025 Average Selling Price | H1 2024 Average Selling Price | Price Growth Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Glass Fiber (thousand tons) | 2,032 | 2,010 | 1.1% | 4,547 RMB | 4,048 RMB | 12.3% | | Gypsum Board (million sq.m.) | 1,156.3 | 1,168.1 | -1.0% | 5.61 RMB | 6.12 RMB | -8.3% | | Wind Turbine Blades (MW) | 15,260 | 7,520 | 102.9% | 340,777 RMB | 377,563 RMB | -9.7% | | Coatings (thousand tons) | 719.29 | 446.22 | 61.2% | 3,491 RMB | 3,996 RMB | -12.6% | | Waterproofing Membranes (million sq.m.) | 126.8 | 117.1 | 8.3% | 13.57 RMB | 14.60 RMB | -7.1% | | Lithium Battery Separators (million sq.m.) | 1,299.7 | 814.4 | 59.6% | 0.71 RMB | 0.93 RMB | -23.7% | | Carbon Fiber (thousand tons) | 10.43 | 6.90 | 51.2% | 86,890 RMB | 104,130 RMB | -16.6% | [Engineering Services Revenue](index=21&type=section&id=Engineering%20Services%20Revenue) Engineering Services Revenue (For the six months ended June 30) | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Growth Rate | | :--- | :--- | :--- | :--- | | Engineering Services Revenue | 21,305.9 | 20,573.3 | 3.6% | [Overview of H1 2025](index=21&type=section&id=Overview%20of%20H1%202025) In H1 2025, the Group faced a complex international environment and domestic structural adjustment pressures, yet China's economy showed stable improvement with new growth drivers emerging. The Group actively responded to challenges through strategies like reform and innovation, lean management, and collaborative cooperation, achieving new progress across all business segments, particularly in green and low-carbon transformation and high-end product development [Development Environment](index=21&type=section&id=Development%20Environment) - In the first half, domestic GDP increased by **5.3%** YoY, fixed asset investment grew by **2.8%** YoY, with infrastructure investment showing a stable **4.6%** increase, while real estate development investment decreased by **11.2%** YoY[43](index=43&type=chunk) - Artificial intelligence is leading a new round of technological revolution and industrial transformation, bringing new development opportunities and challenges for the company's sustainable development[43](index=43&type=chunk) [Group's Response Strategy](index=22&type=section&id=Group's%20Response%20Strategy) - The Group continues to expand new growth, optimize existing assets, manage variables, and improve quality, focusing on reform and innovation, lean management, collaborative cooperation, open sharing, integration and optimization, and Party building leadership[44](index=44&type=chunk) [Basic Building Materials Segment Operations](index=22&type=section&id=Basic%20Building%20Materials%20Segment%20Operations) - National cement output was **815 million tons**, the lowest for the same period since 2010, representing a **4.3%** YoY decrease[45](index=45&type=chunk) - In H1 2025, the cement industry's total profit was **RMB16.4 billion**, turning a loss into profit compared to H1 2024[45](index=45&type=chunk) - In the first half, cement clinker costs decreased by **7.4%** YoY, and gross profit margins for both cement clinker and ready-mixed concrete achieved YoY growth, significantly restoring profitability in the basic building materials business[46](index=46&type=chunk) - Actively promoting "Cement+" business, establishing **5** special cement production bases, and advancing Chizhou and Zongyang aggregate projects[46](index=46&type=chunk) - The Tunisia project completed delivery, and Ningxia Building Materials was selected as the sole cement enterprise in the first batch of national carbon footprint label certification pilot units[46](index=46&type=chunk) [New Materials Segment Operations](index=23&type=section&id=New%20Materials%20Segment%20Operations) [Glass Fiber](index=23&type=section&id=Glass%20Fiber) - Glass fiber business achieved both volume and price increases in the first half, with gross profit margin increasing by **11.1 percentage points** YoY[47](index=47&type=chunk) - The second line of Jiujiang intelligent manufacturing base and the first line of Taiyuan base commenced production, while the electronic-grade glass fiber and supporting projects at Huai'an zero-carbon intelligent manufacturing base and the second line of Taiyuan base officially started construction[47](index=47&type=chunk) - Low-expansion fiber cloth broke foreign monopoly, becoming the only domestic and second global supplier capable of mass-producing low-expansion coefficient fiber cloth products[47](index=47&type=chunk) [Gypsum Board](index=24&type=section&id=Gypsum%20Board) - Gypsum board's home decoration board sales volume significantly increased YoY, and cost-saving initiatives led to a **6.2%** YoY decrease in unit cost[50](index=50&type=chunk) - Tanzania and Uzbekistan production bases continued to achieve significant YoY growth in operating revenue and profit[50](index=50&type=chunk) - The **40 million sq.m./year** gypsum board production line in Thailand has entered trial production, and the **40 million sq.m./year** paper-faced gypsum board production line project in Bosnia and Herzegovina is progressing orderly[50](index=50&type=chunk) [Wind Turbine Blades](index=24&type=section&id=Wind%20Turbine%20Blades) - Wind turbine blade business unit cost decreased by **10.7%** YoY[49](index=49&type=chunk) - All **4** production lines at the Brazil base are operational, and the Uzbekistan project is steadily progressing[52](index=52&type=chunk) - The first domestic **220m+** diameter recyclable wind turbine blade developed in cooperation has been installed, and the trial production and development of **16MW** floating unit SI122F blades have been completed, achieving a major breakthrough in deep and far-sea wind power[52](index=52&type=chunk) [Other New Materials Businesses](index=25&type=section&id=Other%20New%20Materials%20Businesses) - Coatings business steadily advanced management integration, with Carpoly's integration progressing well and Zhejiang Daqiao's integration proceeding orderly[52](index=52&type=chunk) - Waterproofing membranes business expanded its layout in civil construction products and repair services, achieving counter-trend growth in operating revenue and profit[52](index=52&type=chunk) - The first overseas project for lithium battery separators, the Hungary base, is steadily progressing, with **5μm** ultra-thin base film achieving mass supply, and ultra-thin high-strength **4μm/3μm** products forming a technical reserve[52](index=52&type=chunk) - Hydrogen energy cylinder business continues to maintain its industry-leading position, with hydrogen storage cylinder market share and vehicle announcement numbers remaining first in the industry[52](index=52&type=chunk) - Carbon fiber business collaborated with leading clients to develop new energy applications, with the Lianyungang **30,000-ton** carbon fiber project progressing orderly, achieving green transformation of the high-performance carbon fiber industry[52](index=52&type=chunk) [Engineering Technical Services Segment Operations](index=26&type=section&id=Engineering%20Technical%20Services%20Segment%20Operations) - Successfully secured **13** overseas cement whole-line projects in the first half, maintaining the world's largest market share in cement engineering services for **17** consecutive years[53](index=53&type=chunk) - Overseas equipment business revenue accounted for **51%**, and non-equipment industry revenue accounted for **37%**[53](index=53&type=chunk) - Formed a "smart factory + digital mine + expert system" full-scenario solution, with **71** cement operation and maintenance service production lines and **312** mine operation and maintenance service projects currently in execution[53](index=53&type=chunk) - New overseas contracts increased by **19%** YoY, and overseas revenue increased by **25%** YoY[53](index=53&type=chunk) [Strategic Development and Corporate Governance](index=27&type=section&id=Strategic%20Development%20and%20Corporate%20Governance) [Deepening Reforms and Technological Innovation](index=27&type=section&id=Deepening%20Reforms%20and%20Technological%20Innovation) The Group comprehensively advanced supervisory board reform, optimized mixed-ownership enterprise governance, and strengthened market value management by repurchasing and canceling H-shares and increasing China Jushi's stake, enhancing shareholder value. Concurrently, innovation and industrial chains deeply integrated, with several new material projects selected for SASAC's "Top 100 Projects," and breakthroughs achieved in green technologies - Completed the tender offer repurchase and cancellation of **840 million** of the company's circulating H-shares, with a total consideration of **HKD3.392 billion**, representing approximately **9.98%** of the company's total share capital before cancellation[54](index=54&type=chunk) - Increased stake in China Jushi by **89.91 million shares** for **RMB1 billion**, raising the shareholding ratio to **29.22%**[54](index=54&type=chunk) - Special glass fiber for AI and carbon fiber and composite materials for large aircraft projects were selected for SASAC's "Top 100 Projects" in strategic emerging industries[55](index=55&type=chunk) - The world's first large-scale coal gangue suspension hot activation calcination process production line was successfully ignited[55](index=55&type=chunk) [Digital Transformation](index=27&type=section&id=Digital%20Transformation) The Group systematically advanced digital transformation, successfully launching **74** systems, bridging the "last mile" for AI implementation in industrial scenarios, optimizing the entire cement production chain, and reducing average cost per ton by **RMB2.03**. **31** smart cement factories, **72** intelligent new material production lines, and **18** digital mines have been built - "One Cloud" smoothly launched **74** systems and completed demand research for overseas institutions on the global "One Network"[56](index=56&type=chunk) - The basic building materials large model has achieved data value-added in over **140** cement production scenarios, reducing average cost per ton by **RMB2.03** in accepted factories[57](index=57&type=chunk) - A total of **31** smart cement factories, **72** intelligent new material production lines, and **18** digital mines have been built[58](index=58&type=chunk) [Green and Low-Carbon Transformation](index=28&type=section&id=Green%20and%20Low-Carbon%20Transformation) The Group comprehensively deepened green production, with a significant increase in the proportion of ultra-low emission and alternative fuel cement production lines, substantial growth in fuel substitution rates and green electricity usage, and continuous decline in energy consumption and emission indicators. Concurrently, it accelerated the implementation of dual carbon goals, with the second phase of Huai'an Zero-Carbon Intelligent Manufacturing Base commencing construction and the Qingzhou Zhonglian CCUS project selected for the national demonstration list - Ultra-low emission cement production lines accounted for **36.59%**, an increase of **14.49 percentage points** from the end of 2024[59](index=59&type=chunk) - Alternative fuel cement production lines accounted for **45%**, an increase of **12 percentage points** from the end of 2024; cement fuel substitution rate reached **5.88%**, an increase of **1.97 percentage points** from the end of 2024[59](index=59&type=chunk) - "PV+" installed capacity increased by **40.36 MW**, with cumulative installed capacity reaching **707.88 MW**, and green electricity usage increased by **359%** YoY[59](index=59&type=chunk) - Comprehensive energy consumption per ton of cement clinker decreased by **3.04%** YoY, and emissions of carbon dioxide, nitrogen oxides, sulfur dioxide, and dust decreased by **4.18%**, **7.34%**, **1.72%**, and **0.9%** YoY, respectively[59](index=59&type=chunk) - The second phase of the electronic-grade glass fiber and supporting projects at Huai'an Zero-Carbon Intelligent Manufacturing Base commenced construction; the Qingzhou Zhonglian CCUS project was selected for the national green and low-carbon advanced technology demonstration list[60](index=60&type=chunk) [Outlook for H2 2025](index=29&type=section&id=Outlook%20for%20H2%202025) The Group anticipates continued economic uncertainty in H2, but sees opportunities in emerging market infrastructure demand, new material applications, and green low-carbon transformation. Focusing on becoming a world-class materials enterprise, the Group will prioritize stable operations, optimized layout, deepened reforms, and value management to consolidate performance recovery, accelerate industrial transformation, and implement its internationalization strategy - Internationally, emerging market infrastructure demand continues to grow, new material application scenarios are expanding, and green and low-carbon transformation is in a critical window period[61](index=61&type=chunk) - Domestically, the foundation for China's economic recovery is strengthening, with overall stable and improving economic performance[61](index=61&type=chunk) - The Group will anchor its annual targets, focusing on accelerating the construction of a world-class materials enterprise, and continue to prioritize stable operations, optimized layout, deepened reforms, and value management[61](index=61&type=chunk) - Accelerate the optimization and upgrading of basic building materials, with cement business focusing on improving profitability, ready-mixed concrete business accelerating layout in key regions, and aggregates business emphasizing improved input-output ratio[61](index=61&type=chunk) - Strategic emerging industries will comprehensively utilize new investments, mergers and acquisitions, industrial funds, and strategic cooperation to improve tiered layout, focus on key products, and accelerate the construction of industrial clusters[61](index=61&type=chunk) [Major Transactions](index=30&type=section&id=Major%20Transactions) In the Group's acquisition of Carpoly shares, Carpoly's actual net profit for FY2024 did not meet the performance target, and the difference of **RMB77,336,936.31** will be deducted as performance compensation from the remaining share acquisition price - Carpoly's actual net profit for FY2024 was **RMB335,663,063.69**, falling short of the promised net profit of **RMB413 million**[63](index=63&type=chunk) - The difference of **RMB77,336,936.31** will be deducted as performance compensation from the remaining share acquisition price that BNBM should pay to the original shareholders for FY2024[63](index=63&type=chunk) [Share Buyback](index=31&type=section&id=Share%20Buyback) For the six months ended June 30, 2025, the company repurchased a total of **841,749,304 H-shares** through a conditional cash offer, at a total cost of **HKD3,392,249,695**, which were canceled on March 12, 2025. This action aims to demonstrate confidence in long-term prospects, improve trading liquidity, and optimize shareholder structure H-Share Buyback Details | Buyback Completion Date | Number of H-Shares Repurchased | Price Paid Per Share (HKD) | Total Consideration Paid (HKD) | | :--- | :--- | :--- | :--- | | March 12, 2025 | 841,749,304 | 4.03 | 3,392,249,695 | - All repurchased shares were canceled on March 12, 2025, representing approximately **9.98%** of the company's total share capital before cancellation and approximately **18.47%** of the issued H-shares[65](index=65&type=chunk) - The Board believes that the share buyback demonstrates the company's confidence in its long-term prospects and intrinsic value, and can improve trading liquidity and update the shareholder structure[65](index=65&type=chunk) [Corporate Governance Code and Board Committees](index=31&type=section&id=Corporate%20Governance%20Code%20and%20Board%20Committees) The company complied with most provisions of the Corporate Governance Code during the reporting period, with exceptions regarding directors' rotation. The Board has established specialized committees, including Strategic Decision, Nomination, Remuneration and Assessment, Audit, and ESG, each performing its duties to ensure effective corporate governance [Board Member Changes](index=31&type=section&id=Board%20Member%20Changes) - The current Board was elected on November 19, 2021, and was due for rotation on November 19, 2024, but due to the implementation of the H-share buyback offer, some directors have not yet rotated[67](index=67&type=chunk) - Several directors, including Mr. Fu Jinguang, Mr. Liu Yan, Mr. Peng Shou, Mr. Xiao Jiaxiang, Ms. Fan Xiaoyan, Mr. Chang Zhangli, and Mr. Li Xinhua, resigned due to work adjustments or retirement[68](index=68&type=chunk) - New directors, including Mr. Liu Yan, Mr. Wei Rushan, Mr. Chen Shaolong, and Ms. Miao Xiaoling, joined the Board[68](index=68&type=chunk) [Strategic Decision Committee](index=32&type=section&id=Strategic%20Decision%20Committee) - The Strategic Decision Committee comprises **three** directors, including **two** executive directors and **one** independent non-executive director[69](index=69&type=chunk) - Responsible for researching and reviewing the company's operating objectives and long-term development strategies, business and organizational development plans, major investment and financing proposals, and other significant matters affecting the company's development[69](index=69&type=chunk) - During the reporting period, it reviewed proposals such as the company's 2025 investment plan, budget, debt financing instrument issuance plan, and credit facility application plan[69](index=69&type=chunk) [Nomination Committee](index=33&type=section&id=Nomination%20Committee) - The Nomination Committee comprises **three** directors, including **one** executive director and **two** independent non-executive directors[70](index=70&type=chunk) - Responsible for formulating the selection procedures and criteria for the company's directors, senior management, and committee members, and reviewing the Board diversity policy[70](index=70&type=chunk) - Board members comply with the diversity policy in terms of gender, age, cultural and educational background, professional experience, and skills, including **two** female members[71](index=71&type=chunk) [Remuneration and Assessment Committee](index=33&type=section&id=Remuneration%20and%20Assessment%20Committee) - The Remuneration and Assessment Committee comprises **three** directors, including **one** executive director and **two** independent non-executive directors[72](index=72&type=chunk) - Responsible for recommending and reviewing the specific remuneration and performance of the company's directors and senior management in accordance with policies set by the Board[72](index=72&type=chunk) - During the reporting period, it reviewed proposals regarding the performance and remuneration of the company's senior management for 2024[72](index=72&type=chunk) [Audit Committee](index=34&type=section&id=Audit%20Committee) - The Audit Committee comprises **three** independent non-executive directors, one of whom possesses appropriate professional qualifications[73](index=73&type=chunk) - Responsible for monitoring the company's external auditors and their work, the company's financial reporting process, internal control systems, risk management, and internal control work[73](index=73&type=chunk) - During the reporting period, it reviewed proposals such as the appointment of auditors for 2025 and the 2025 interim results report[73](index=73&type=chunk) [Environmental, Social and Governance Committee](index=34&type=section&id=Environmental,%20Social%20and%20Governance%20Committee) - The Environmental, Social and Governance Committee comprises **three** directors, including **one** executive director and **two** independent non-executive directors[74](index=74&type=chunk) - Responsible for researching and formulating the company's overall ESG management objectives, strategies, and policies, and regularly assessing the adequacy and effectiveness of the company's ESG framework[74](index=74&type=chunk) - During the reporting period, it reviewed the proposal regarding the company's 2024 ESG report and discussed ESG development trends[74](index=74&type=chunk) [Standard Code and Subsequent Events](index=34&type=section&id=Standard%20Code%20and%20Subsequent%20Events) The company has adopted a code for directors' securities transactions no less stringent than the Model Code and confirmed compliance by all directors and supervisors during the reporting period. As of the announcement date, the Group has no material subsequent events requiring disclosure - The company has adopted a code for directors' securities transactions no less stringent than the Model Code and confirmed compliance by all directors and supervisors during the reporting period[75](index=75&type=chunk) - As of the date of this announcement, the Group has no material subsequent events requiring disclosure for the reporting period[76](index=76&type=chunk) [Definitions](index=35&type=section&id=Definitions) [Glossary of Terms](index=35&type=section&id=Glossary%20of%20Terms) This section provides definitions for key terms and abbreviations used in the report, including company names, business concepts, financial terminology, and regulatory bodies, to ensure clear understanding of the report's content - Provides definitions for key terms such as "China National Building Material," "Board," "Carpoly," "Cement+," "Code," "China Jushi," "Qingzhou Zhonglian," "the Company," "Directors," "Domestic Shares," "the Group," "H Shares," "Listing Rules," "Lean Management," "Model Code," "Ningxia Building Materials," "Parent Company," "Parent Company Group," "PRC" or "China Government," "Reporting Period," "RMB," "SFO," "Shares," "Shareholders," "Stock Exchange," "Supervisor," and "Supervisory Committee"[78](index=78&type=chunk)[79](index=79&type=chunk)[81](index=81&type=chunk)

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，並明確表示概不就因本公告全部或任何部份內容而產生或因 依賴該等內容引致的任何損失承擔任何責任。 步陽國際控股有限公司 （ 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ） （股份代號：2457） Buyang International Holding Inc 截至2025年6月30日止六個月之中期業績公告 財務摘要 | | 截至6月30日止六個月 | | | | | --- | --- | --- | --- | --- | | | | 2025年 | 2024年 | 變動 | | | （人民幣千元） | | （人民幣千元） | | | 收益 | | 172,725 | 189,315 | -8.76% | | 毛利 | | 21,221 | 26,912 | -21.15% | | 除稅前溢利 | | 6,701 | 14,782 | -54.67% | | 期內溢利 | | 5,947 | 12,447 | -52.22% | | 期內全面收益總額 | | 5,681 | 12,639 ...

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，概不對因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致之任何損失承擔任何責任。 JF SmartInvest Holdings Ltd 九方智投控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：9636） 截至2025年6月30日止六個月 中期業績公告 九方智投控股有限公司（「本公司」）董事（「董事」）會（「董事會」）公佈本公司及 其附屬公司（「本集團」或「我們」）截至2025年6月30日止六個月（「報告期」或「本 期」）的未經審核合併中期業績，連同截至2024年6月30日止六個月（「同期」）的 比較數字如下。本期業績公佈的內容乃根據《香港聯合交易所有限公司證券上市 規則》（「上市規則」）項下有關業績公佈的適用披露規定，並根據香港會計師公會 （「香港會計師公會」）頒佈的香港財務報告準則（「香港財務報告準則」）編製。除特 別註明外，本公司的財務數據均以人民幣（「人民幣」）列示。 摘要 於報告期： 1 • 本集團總訂單金額約為人民幣1,705.4百萬元，較同期的約人民幣930 ...

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聲明，並明確表示概不就因本公告全部或任何部分內容而 產生或因倚賴該等內容而引致的任何損失承擔任何責任。 （ 一家於中華人民共和國註冊成立的股份有限公司） （股份代號：2418） 2025年中期業績公告 德銀天下股份有限公司（「本公司」）董事會（「董事會」）謹此宣佈本公司及附 屬公司（「本集團」）截至2025年6月30日止六個月期間未經審計業績公告。 本 公 告 刊 載 本 公 司 2025 年 中 期 報 告 全 文 ， 符 合 香 港 聯 合 交 易 所 有 限 公 司 （「香港聯交所」）證券上市規則中有關中期業績初步公告附載的資料要求， 並經本公司董事會審核委員會審閱。 本公司2025年中期報告將於適當時候於香港聯交所披露易網頁(www.hkexnews.hk) 及本公司網頁(www.deewintx.com)上登載。 承董事會命 德銀天下股份有限公司 董事長 郭萬才 中國，西安 2025年8月28日 於本公告日期，本公司董事會成員包括董事長兼非執行董事郭萬才先生， 執行董事趙鵬先生及王文岐先生，非執行董事 ...