[Group Financial Summary](index=1&type=section&id=Group%20Financial%20Summary) This section provides a concise overview of the group's key financial performance and position for the first half of 2025 compared to 2024 | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,812.6 | 4,280.2 | -10.9% | | Passenger Vehicles Sold | 8,307 units | 9,141 units | -9.1% | | Revenue from Vehicle Sales | 3,158.8 | 3,673.7 | -14.0% | | Revenue from After-sales Services | 653.8 | 606.5 | +7.8% | | Net Profit | 11.6 | 47.5 | -75.6% | | Profit Attributable to Equity Holders of the Company | 7.1 | 33.9 | -79.1% | | Net Profit Margin | 0.3% | 1.1% | -0.8pp | | Net Cash Inflow from Operating Activities | 309.4 | 379.8 | -18.6% | | Cash and Cash Equivalents | 909.9 (as of June 30, 2025) | 899.4 (as of December 31, 2024) | +1.2% | [Interim Results Overview](index=2&type=section&id=Interim%20Results) The Board of Directors announced the unaudited consolidated interim results for the six months ended June 30, 2025, which have been reviewed by the audit committee - The Board of Directors announced the unaudited consolidated interim results for the six months ended June 30, 2025, which have been reviewed by the audit committee[4](index=4&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This section presents the consolidated financial performance, including revenue, profit, and comprehensive income, for the six months ended June 30, 2025 and 2024 Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,812,566 | 4,280,157 | -10.9% | | Cost of Sales | (3,799,606) | (4,076,484) | -6.8% | | Gross Profit | 12,960 | 203,673 | -93.6% | | Other Income | 363,583 | 259,900 | +39.9% | | Selling and Distribution Expenses | (228,278) | (289,988) | -21.3% | | Administrative Expenses | (105,290) | (88,932) | +18.4% | | Operating Profit | 42,975 | 84,653 | -49.2% | | Finance Costs | (29,809) | (16,349) | +82.3% | | Profit Before Tax | 13,166 | 68,304 | -80.7% | | Income Tax Expense | (1,539) | (20,802) | -92.6% | | Profit for the Period | 11,627 | 47,502 | -75.5% | | Profit Attributable to Equity Holders of the Company | 7,132 | 33,878 | -79.0% | | Basic and Diluted Earnings Per Share (RMB) | 0.01 | 0.05 | -80.0% | | Total Comprehensive Income for the Period | 10,564 | 46,795 | -77.4% | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This section details the group's assets, liabilities, and equity as of June 30, 2025, and December 31, 2024 Interim Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | **Non-current Assets** | | | | | Property, Plant and Equipment | 566,867 | 415,952 | +36.3% | | Investment Properties | 338,114 | 54,898 | +516.0% | | Right-of-use Assets | 769,078 | 335,380 | +129.3% | | Intangible Assets | 791,380 | 810,557 | -2.4% | | Goodwill | 367,944 | 367,944 | 0.0% | | Deferred Tax Assets | 35,227 | 23,246 | +51.5% | | Long-term Prepayments | 89,900 | 386,175 | -76.7% | | **Total Non-current Assets** | **2,958,510** | **2,394,152** | **+23.6%** | | **Current Assets** | | | | | Inventories | 694,481 | 829,099 | -16.3% | | Trade Receivables | 129,400 | 77,317 | +67.4% | | Prepayments, Other Receivables and Other Assets | 657,577 | 647,903 | +1.5% | | Pledged Bank Deposits | 377,874 | 430,170 | -12.2% | | Cash and Cash Equivalents | 508,548 | 450,605 | +12.8% | | **Total Current Assets** | **2,405,286** | **2,469,688** | **-2.6%** | | **Current Liabilities** | | | | | Trade Payables and Bills Payable | 842,354 | 882,144 | -4.5% | | Interest-bearing Bank and Other Borrowings | 497,866 | 438,445 | +13.5% | | **Total Current Liabilities** | **1,761,436** | **1,577,808** | **+11.6%** | | **Non-current Liabilities** | | | | | Interest-bearing Bank and Other Borrowings | 350,000 | — | N/A | | **Total Non-current Liabilities** | **868,670** | **547,022** | **+58.8%** | | **Total Equity** | **2,733,690** | **2,739,010** | **-0.2%** | [Notes to the Unaudited Interim Financial Statements](index=6&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Statements) This section provides detailed explanations and disclosures for the figures presented in the interim financial statements [1. General Information](index=6&type=section&id=1.%20General%20Information) The Company, incorporated in the Cayman Islands, primarily operates 4S dealership businesses in China and was listed on the HKEX main board on July 15, 2021 - The Company was incorporated as an exempted company in the Cayman Islands on May 18, 2018[10](index=10&type=chunk) - The Group is principally engaged in 4S dealership businesses in the People's Republic of China[11](index=11&type=chunk) - The Company's shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on July 15, 2021[12](index=12&type=chunk) [2. Basis of Preparation](index=6&type=section&id=2.%20Basis%20of%20Preparation) The interim consolidated financial statements are prepared in accordance with IFRS, presented in RMB, and measured using the historical cost convention, requiring management judgments and estimates - The interim condensed consolidated financial statements have been prepared in accordance with all applicable accounting standards of International Financial Reporting Standards[13](index=13&type=chunk) - The financial statements are presented in RMB, the Group's presentation currency, and have been rounded to the nearest thousand[14](index=14&type=chunk) - The financial statements have been prepared on the historical cost basis, except for certain assets that are stated at fair value[15](index=15&type=chunk) [3. Application of Amendments to International Financial Reporting Standards](index=7&type=section&id=3.%20Application%20of%20Amendments%20to%20International%20Financial%20Reporting%20Standards) Amendments to IAS 21 "Lack of Exchangeability" were first applied during the period, but had no significant impact on the Group's financial performance or position - The Group has first applied the amendments to IAS 21 "Lack of Exchangeability" issued by the International Accounting Standards Board[16](index=16&type=chunk)[17](index=17&type=chunk) - The application of these amendments did not have a significant impact on the Group's financial performance and position for the current and prior periods[17](index=17&type=chunk) [4. Revenue and Segment Reporting](index=7&type=section&id=4.%20Revenue%20and%20Segment%20Reporting) The Group primarily engages in passenger vehicle sales and after-sales services, reporting a single operating segment in China, with vehicle sales revenue decreasing and after-sales service revenue increasing - The Group is principally engaged in the sale of passenger vehicles and provision of after-sales services, operating a single reportable operating segment, which is the sale of passenger vehicles and provision of related services in China[18](index=18&type=chunk) Revenue Disaggregated by Major Product or Service Line (For the six months ended June 30) | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Sale of Passenger Vehicles | 3,158,820 | 3,673,665 | -14.0% | | Provision of After-sales Services | 653,746 | 606,492 | +7.8% | | **Total** | **3,812,566** | **4,280,157** | **-10.9%** | - All revenue is derived from mainland China and recognized at a point in time[19](index=19&type=chunk) [5. Other Income](index=8&type=section&id=5.%20Other%20Income) Other income increased by 39.9% year-on-year to RMB 363.6 million, primarily driven by a significant rise in commission income Other Income Components (For the six months ended June 30) | Income Source | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Interest income | 2,320 | 6,143 | -62.3% | | Commission income | 312,256 | 214,434 | +45.6% | | Rental income | 273 | 305 | -10.5% | | Government grants | 139 | 1,483 | -90.6% | | Gain on disposal of items of property, plant and equipment | 7,905 | 11,531 | -31.4% | | Others | 40,690 | 26,004 | +56.5% | | **Total** | **363,583** | **259,900** | **+39.9%** | [6. Profit Before Tax](index=8&type=section&id=6.%20Profit%20Before%20Tax) Profit before tax significantly decreased by 80.7% to RMB 13.2 million, mainly due to a substantial increase in finance costs and higher staff costs Finance Costs (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Interest on bank and other borrowings | 21,167 | 5,681 | +272.6% | | Interest on lease liabilities | 8,404 | 10,309 | -18.5% | | Interest on sale and leaseback liabilities | 238 | 359 | -33.7% | | **Total** | **29,809** | **16,349 | **+82.3%** | Staff Costs (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Salaries, wages and other benefits | 144,038 | 132,576 | +8.6% | | Contributions to defined contribution retirement plans | 19,108 | 16,993 | +12.4% | | Equity-settled share-based payment transactions | 1,101 | (6,317) | N/A | | **Total** | **164,247** | **143,252** | **+14.7%** | Other Items (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Cost of inventories | 3,761,486 | 4,017,800 | -6.4% | | Depreciation — owned property, plant and equipment | 42,687 | 48,980 | -12.8% | | Depreciation — right-of-use assets | 37,481 | 34,917 | +7.3% | | Amortisation of intangible assets | 19,177 | 19,717 | -2.7% | | Operating lease charges | 3,472 | 720 | +382.2% | | Auditor's remuneration — other services | 1,500 | — | N/A | [7. Income Tax](index=9&type=section&id=7.%20Income%20Tax) Income tax expense decreased significantly by 92.8% year-on-year to RMB 1.5 million, primarily due to reduced taxable profit, with varying corporate income tax rates applied to Chinese subsidiaries Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Current tax: Provision for PRC income tax for the period | 17,808 | 21,812 | -18.4% | | Deferred tax: Origination and reversal of temporary differences | (16,269) | (1,010) | +1510.8% | | **Total** | **1,539** | **20,802** | **-92.6%** | - The Company, incorporated in the Cayman Islands, is not subject to income tax; Hong Kong subsidiaries had no taxable profit during the period, thus no provision for Hong Kong profits tax was made[24](index=24&type=chunk) - PRC subsidiaries are subject to a corporate income tax rate of 25%, except for Chengdu Jinbao, Chengdu Xinbao, and Hainan Liya, which enjoy a preferential tax rate of 15%, and two subsidiaries in Harbin and Xiamen, which enjoy a preferential tax rate of 5%[25](index=25&type=chunk)[30](index=30&type=chunk) [8. Dividends](index=10&type=section&id=8.%20Dividends) The Board recommended no interim dividend for the six months ended June 30, 2025, compared to RMB 0.03 per ordinary share in the prior period - No interim dividend was proposed after the end of the reporting period for the six months ended June 30, 2025 (for the six months ended June 30, 2024: RMB 0.03 per ordinary share)[28](index=28&type=chunk) - A final dividend of RMB 0.02 per ordinary share for the previous financial year was approved in the next interim period (for the six months ended June 30, 2024: RMB 0.03 per ordinary share)[28](index=28&type=chunk) [9. Earnings Per Share](index=10&type=section&id=9.%20Earnings%20Per%20Share) Basic earnings per share for the six months ended June 30, 2025, was RMB 0.01, a significant decrease from RMB 0.05 in the prior period - Basic earnings per share for the six months ended June 30, 2025, was **RMB 0.01** (2024: RMB 0.05)[5](index=5&type=chunk)[28](index=28&type=chunk) - Basic earnings per share is calculated based on the profit attributable to equity holders of the Company of **RMB 7,132,000** and the weighted average number of ordinary shares in issue of **611,524,729** shares[28](index=28&type=chunk) - No adjustment has been made to the basic earnings per share amount for dilution as the outstanding share options had an anti-dilutive effect on the basic earnings per share amount presented[29](index=29&type=chunk) [10. Intangible Assets](index=11&type=section&id=10.%20Intangible%20Assets) As of June 30, 2025, the net book value of intangible assets was RMB 791.4 million, primarily comprising motor vehicle dealership rights, with amortization expense of RMB 19.2 million for the period Net Book Value of Intangible Assets (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Office software | 23,195 | 25,734 | | Motor vehicle dealership rights | 768,185 | 784,823 | | **Total** | **791,380** | **810,557** | - Motor vehicle dealership rights have an estimated useful life of 30 years, with fair value determined using the multi-period excess earnings method at each acquisition date[31](index=31&type=chunk) - Intangible assets of approximately **RMB 27.2 million** were written off due to the closure of a Jaguar-Land Rover retail store in the Foshan area[33](index=33&type=chunk) [11. Goodwill](index=12&type=section&id=11.%20Goodwill) As of June 30, 2025, the carrying amount of goodwill remained stable at RMB 367.9 million, with RMB 10.7 million written off last year due to the closure of a Jaguar-Land Rover retail store in Foshan - The carrying amount of goodwill was **RMB 367,944 thousand** as of June 30, 2025, and December 31, 2024[34](index=34&type=chunk) - Goodwill of approximately **RMB 10.7 million** was written off last year due to the closure of a Jaguar-Land Rover retail store in the Foshan area[33](index=33&type=chunk)[34](index=34&type=chunk) [12. Inventories](index=12&type=section&id=12.%20Inventories) Total inventories as of June 30, 2025, decreased by 16.2% to RMB 694.5 million, with portions pledged as collateral for bank loans and bills payable Inventory Components (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Motor vehicles | 655,622 | 783,766 | -16.4% | | Parts and accessories | 65,726 | 73,737 | -10.9% | | Less: Provision for inventories | (26,867) | (28,404) | -5.4% | | **Total** | **694,481** | **829,099** | **-16.3%** | - As of June 30, 2025, inventories with a carrying amount of **RMB 130,733 thousand** were pledged as collateral for bank and other borrowings[35](index=35&type=chunk) - As of June 30, 2025, inventories with a carrying amount of **RMB 236,179 thousand** were pledged as collateral for bills payable[35](index=35&type=chunk) [13. Trade Receivables](index=13&type=section&id=13.%20Trade%20Receivables) Total trade receivables as of June 30, 2025, significantly increased by 67.4% to RMB 129.4 million, with all expected to be recovered within one year and no significant impairment provision recognized Ageing Analysis of Trade Receivables (As of June 30) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Within 3 months | 103,055 | 76,810 | +34.2% | | 3 to 6 months | 9,671 | 247 | +3815.0% | | 6 months to 1 year | 16,674 | 260 | +6313.1% | | **Total** | **129,400** | **77,317** | **+67.4%** | - All trade receivables are expected to be recovered within one year, and management continuously monitors credit risk[36](index=36&type=chunk) - No significant impairment provision for trade receivables was recognized as of June 30, 2025, and December 31, 2024[36](index=36&type=chunk) [14. Prepayments, Other Receivables and Other Assets](index=13&type=section&id=14.%20Prepayments,%20Other%20Receivables%20and%20Other%20Assets) The current portion of prepayments, other receivables, and other assets was RMB 657.6 million as of June 30, 2025, including RMB 579.0 million paid for the acquisition of a claim from Inner Mongolia Commercial Bank, which is not yet fully completed Components of Prepayments, Other Receivables and Other Assets (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Prepayments | 172,194 | 157,037 | +9.7% | | Prepayments for acquisition of claims | 89,721 | 385,996 | -76.7% | | Other receivables | 240,554 | 174,700 | +37.7% | | Rebates receivable | 233,746 | 291,125 | -19.7% | | Recoverable VAT | 26,502 | 40,460 | -34.5% | | **Total** | **762,717** | **1,049,318** | **-27.3%** | | Less: Long-term prepayments | (89,900) | (386,175) | -76.7% | | Impairment provision for other receivables | (15,240) | (15,240) | 0.0% | | **Current portion** | **657,577** | **647,903** | **+1.5%** | - The Group entered into a claim transfer agreement with Inner Mongolia Commercial Bank, having paid the remaining consideration of approximately **RMB 579.0 million**, with the transaction not fully completed before June 30, 2025[38](index=38&type=chunk) [15. Trade Payables and Bills Payable](index=14&type=section&id=15.%20Trade%20Payables%20and%20Bills%20Payable) Total trade payables and bills payable decreased by 4.5% to RMB 842.4 million as of June 30, 2025, with bills payable secured by inventories and pledged bank deposits Components of Trade Payables and Bills Payable (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 109,146 | 88,291 | +23.6% | | Bills payable | 733,208 | 793,853 | -7.6% | | **Total** | **842,354** | **882,144** | **-4.5%** | - Bills payable are secured by inventories with a carrying amount of **RMB 236,179 thousand** and pledged bank deposits of **RMB 377,874 thousand**[39](index=39&type=chunk) [16. Acquisition of a Subsidiary](index=15&type=section&id=16.%20Acquisition%20of%20a%20Subsidiary) The Group acquired a claim from Inner Mongolia Commercial Bank for approximately RMB 965.0 million to obtain collateral, including equity in Aurora Real Estate, business of Aurora Star, and two properties in Beijing, treated as an acquisition of assets and liabilities - The Group entered into a claim transfer agreement with Inner Mongolia Commercial Bank to acquire claims for a cash consideration of approximately **RMB 965.0 million**, aiming to acquire assets pledged as collateral[40](index=40&type=chunk) - The collateral includes equity in Beijing Aurora Real Estate Development Co., Ltd., the business of Beijing Aurora Star Automobile Sales and Service Co., Ltd., and two properties located in Beijing[40](index=40&type=chunk) - The transfer of equity in Aurora Real Estate is treated as an acquisition of assets and liabilities, not a business combination, with total assets and liabilities of **RMB 875,269 thousand** at the acquisition date[40](index=40&type=chunk)[42](index=42&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's operational performance, financial position, and key business developments during the reporting period [1. Business Review](index=17&type=section&id=1.%20Business%20Review) The Company is a luxury and ultra-luxury automotive dealership service provider in China, operating 17 4S stores and one showroom across eight provinces and cities, offering comprehensive automotive products and after-sales services - The Group is an automotive dealership service provider in China, focusing on luxury and ultra-luxury brands, operating **17 4S dealership stores** and one showroom across eight provinces and cities in China[44](index=44&type=chunk)[45](index=45&type=chunk) - It offers a full range of automotive-related products and services, including sales of imported and domestic vehicles, after-sales services, insurance agency, vehicle registration, auto financing, and used car services[47](index=47&type=chunk) - The Group implements standardized central management and builds an intelligent business platform to enhance operational efficiency, optimize customer experience, and establish differentiated competitive barriers[47](index=47&type=chunk) Key Operating Data (For the six months ended June 30) | Metric | H1 2025 | H1 2024 | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Passenger Vehicles Sold | 8,307 units | 9,141 units | -9.1% | | Revenue from Vehicle Sales | RMB 3,158.8 million | RMB 3,673.7 million | -14.0% | | Revenue from After-sales Services | RMB 653.8 million | RMB 606.5 million | +7.8% | | Proportion of Vehicle Sales Revenue to Total Revenue | 82.9% | 85.8% | -3.4% | | Proportion of After-sales Services Revenue to Total Revenue | 17.1% | 14.2% | +20.4% | [2. Financial Review](index=20&type=section&id=2.%20Financial%20Review) The Group's revenue decreased by 10.9% to RMB 3,812.6 million, primarily due to lower vehicle sales and average selling prices, leading to a significant 93.6% drop in gross profit and a 75.6% decline in net profit [2.1 Revenue](index=20&type=section&id=2.1%20Revenue) Revenue decreased by 10.9% to RMB 3,812.6 million, driven by a 14.0% decline in vehicle sales revenue due to lower sales volume and average selling price, while after-sales service revenue increased by 7.8% - Revenue decreased by approximately **10.9%** from approximately **RMB 4,280.2 million** for the corresponding period in 2024 to approximately **RMB 3,812.6 million** for the period[51](index=51&type=chunk) - Revenue from vehicle sales decreased by **14.0%** to approximately **RMB 3,158.8 million**, primarily due to a decline in new car sales volume (down **9.1%**) and average selling price (down **5.4%**)[51](index=51&type=chunk) - Revenue from after-sales services increased by **7.8%** to approximately **RMB 653.8 million**, mainly due to an increase in business volume[51](index=51&type=chunk) [2.2 Cost of Sales](index=20&type=section&id=2.2%20Cost%20of%20Sales) Cost of sales decreased by 6.8% to RMB 3,799.6 million, primarily due to a decline in new vehicle sales volume - Cost of sales decreased by approximately **6.8%** from approximately **RMB 4,076.5 million** for the corresponding period in 2024 to approximately **RMB 3,799.6 million** for the period, mainly due to a decline in new car sales volume[52](index=52&type=chunk) [2.3 Gross Profit and Gross Margin](index=20&type=section&id=2.3%20Gross%20Profit%20and%20Gross%20Margin) Gross profit decreased significantly by 93.6% to RMB 13.0 million, with the gross margin falling to 0.3%, mainly due to lower average selling prices and gross margins for passenger vehicles - Gross profit was approximately **RMB 13.0 million**, a decrease of approximately **93.6%** compared to the corresponding period in 2024[53](index=53&type=chunk) - Gross profit margin decreased from approximately **4.8%** for the corresponding period in 2024 to approximately **0.3%** for the period, primarily due to a decrease in the average selling price and gross profit margin of passenger vehicles[53](index=53&type=chunk) [2.4 Other Income](index=21&type=section&id=2.4%20Other%20Income) Other income increased by 39.9% to RMB 363.6 million, primarily attributable to higher commission income from other value-added automotive services - Other income increased by approximately **39.9%** from approximately **RMB 259.9 million** for the corresponding period in 2024 to approximately **RMB 363.6 million** for the period, mainly due to an increase in commission income from other value-added automotive services[54](index=54&type=chunk) [2.5 Selling and Distribution Expenses](index=21&type=section&id=2.5%20Selling%20and%20Distribution%20Expenses) Selling and distribution expenses decreased by 21.3% to RMB 228.3 million, mainly due to reduced promotional expenses for vehicle sales - Selling and distribution expenses decreased by approximately **21.3%** from approximately **RMB 290.0 million** for the corresponding period in 2024 to approximately **RMB 228.3 million** for the period, mainly due to a reduction in promotional expenses for vehicle sales[55](index=55&type=chunk) [2.6 Administrative Expenses](index=21&type=section&id=2.6%20Administrative%20Expenses) Administrative expenses increased by 18.4% to RMB 105.3 million, primarily due to higher staff costs and increased depreciation and amortization expenses - Administrative expenses increased by approximately **18.4%** from approximately **RMB 88.9 million** for the corresponding period in 2024 to approximately **RMB 105.3 million** for the period, mainly due to an increase in staff costs and depreciation and amortization expenses[56](index=56&type=chunk) [2.7 Finance Costs](index=21&type=section&id=2.7%20Finance%20Costs) Finance costs increased by 82.8% to RMB 29.8 million, mainly driven by an increase in bank and other borrowings - Finance costs increased by approximately **82.8%** from approximately **RMB 16.3 million** for the corresponding period in 2024 to approximately **RMB 29.8 million** for the period, mainly due to an increase in bank and other borrowings[57](index=57&type=chunk) [2.8 Profit Before Tax](index=21&type=section&id=2.8%20Profit%20Before%20Tax) Profit before tax decreased significantly by 80.7% to RMB 13.2 million - Profit before tax decreased by approximately **80.7%** from approximately **RMB 68.3 million** for the corresponding period in 2024 to approximately **RMB 13.2 million** for the period[58](index=58&type=chunk) [2.9 Income Tax Expense](index=22&type=section&id=2.9%20Income%20Tax%20Expense) Income tax expense decreased by 92.8% to RMB 1.5 million, primarily due to a reduction in taxable profit - Income tax expense decreased by approximately **92.8%** from approximately **RMB 20.8 million** incurred for the corresponding period in 2024 to approximately **RMB 1.5 million** incurred for the period, mainly due to a reduction in taxable profit[59](index=59&type=chunk) [2.10 Profit for the Period](index=22&type=section&id=2.10%20Profit%20for%20the%20Period) Profit for the period decreased by 75.6% to RMB 11.6 million, resulting in a net profit margin of 0.3% compared to 1.1% in the prior period - Profit for the period decreased by approximately **75.6%** from approximately **RMB 47.5 million** for the corresponding period in 2024 to approximately **RMB 11.6 million** for the period[60](index=60&type=chunk) - The net profit margin for the period was approximately **0.3%**, compared to approximately **1.1%** for the corresponding period in 2024[60](index=60&type=chunk) [2.11 Profit Attributable to Equity Holders of the Company](index=22&type=section&id=2.11%20Profit%20Attributable%20to%20Equity%20Holders%20of%20the%20Company) Profit attributable to equity holders of the Company decreased by 79.1% to RMB 7.1 million - Profit attributable to equity holders of the Company decreased by approximately **79.1%** from approximately **RMB 33.9 million** for the corresponding period in 2024 to approximately **RMB 7.1 million** for the period[61](index=61&type=chunk) [2.12 Inventory Turnover Days](index=22&type=section&id=2.12%20Inventory%20Turnover%20Days) Inventory balance decreased by 16.2% to RMB 694.5 million, with average inventory turnover days increasing slightly to 36.3 days - The inventory balance decreased by approximately **16.2%** from approximately **RMB 829.1 million** as of December 31, 2024, to approximately **RMB 694.5 million** as of June 30, 2025[62](index=62&type=chunk) - As of June 30, 2025, the average inventory turnover days were approximately **36.3 days** (December 31, 2024: approximately 35.2 days)[62](index=62&type=chunk) [3. Liquidity and Financial Resources](index=22&type=section&id=3.%20Liquidity%20and%20Financial%20Resources) The Group maintains a prudent treasury policy and sound liquidity, with total equity slightly decreasing, interest-bearing bank and other borrowings significantly increasing by 93.4% to RMB 847.9 million, and a debt-to-equity ratio rising to 31.0% - The Group's primary sources of working capital include cash inflows from operating activities and bank borrowings, maintaining a prudent treasury policy and sound liquidity[63](index=63&type=chunk) - As of June 30, 2025, the Group's total equity was approximately **RMB 2,733.7 million** (December 31, 2024: approximately RMB 2,739.0 million)[63](index=63&type=chunk) - Interest-bearing bank and other borrowings amounted to **RMB 847.9 million**, an increase of approximately **93.4%** compared to December 31, 2024, mainly due to increased loans to pay for the claim transfer from Inner Mongolia Commercial Bank[64](index=64&type=chunk) - The debt-to-equity ratio was approximately **31.0%** (December 31, 2024: approximately 16.0%)[64](index=64&type=chunk) - Net cash inflow from operating activities was approximately **RMB 309.4 million** (H1 2024: RMB 379.8 million)[64](index=64&type=chunk) [4. Capital Commitments](index=23&type=section&id=4.%20Capital%20Commitments) As of June 30, 2025, capital commitments were approximately RMB 4.0 million, primarily for property, plant and equipment, intangible assets, and business acquisitions, with no large capital commitments for future expansion - The Group's capital commitments were approximately **RMB 4.0 million** (December 31, 2024: approximately RMB 2.5 million)[66](index=66&type=chunk) - Capital commitments primarily include expenditures for property, plant and equipment, intangible assets, and business acquisitions[66](index=66&type=chunk) - The Group plans to further expand its dealership network and prefers to maintain flexibility throughout the expansion process, without making any large capital commitments for its expansion[67](index=67&type=chunk) [5. Significant Acquisitions and Disposals of Subsidiaries](index=24&type=section&id=5.%20Significant%20Acquisitions%20and%20Disposals%20of%20Subsidiaries) The Group acquired a subsidiary during the period, as detailed in Note 16 to the financial statements, with no other significant acquisitions or disposals - During the period, the Group acquired a subsidiary, details of which are disclosed in Note 16 to the financial statements in this announcement[68](index=68&type=chunk) - Save as disclosed above, the Group had no other significant acquisitions or disposals of subsidiaries during the period[68](index=68&type=chunk) [6. Capital Expenditure and Investments](index=24&type=section&id=6.%20Capital%20Expenditure%20and%20Investments) Total capital expenditure for the six months ended June 30, 2025, was approximately RMB 699.7 million, a significant increase from the prior period, primarily for property, plant and equipment and business acquisitions - For the six months ended June 30, 2025, the Group's total capital expenditure was approximately **RMB 699.7 million** (for the six months ended June 30, 2024: approximately RMB 54.6 million)[69](index=69&type=chunk) - Capital expenditure primarily includes expenditures for property, plant and equipment and business acquisitions[69](index=69&type=chunk) - Save as disclosed above, the Group made no other significant investments for the six months ended June 30, 2025[69](index=69&type=chunk) [7. Contingent Liabilities](index=24&type=section&id=7.%20Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities (December 31, 2024: Nil)[70](index=70&type=chunk) [8. Pledged Group Assets](index=24&type=section&id=8.%20Pledged%20Group%20Assets) The Group pledged certain assets, including inventories, deposits, and properties, as collateral for bills payable and interest-bearing bank borrowings to fund daily business operations - The Group pledged its group assets as collateral for bills payable and interest-bearing bank and other borrowings to fund its daily business operations[71](index=71&type=chunk) Total Carrying Amount of Pledged Assets (As of June 30) | Item | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Inventories | 366.9 | 348.8 | | Deposits | 377.9 | 430.2 | | Properties | 161.8 | — | [9. Human Resources](index=24&type=section&id=9.%20Human%20Resources) As of June 30, 2025, the Group had 1,756 employees, an increase from December 31, 2024, with remuneration comprising basic salaries, discretionary bonuses, social insurance contributions, and share-based incentives - As of June 30, 2025, the Group had **1,756 employees** (December 31, 2024: 1,450 employees)[72](index=72&type=chunk) - Remuneration for existing employees includes basic salaries, discretionary bonuses, social insurance contributions, and share-based incentives[72](index=72&type=chunk) [Other Information](index=25&type=section&id=Other%20Information) This section presents additional disclosures regarding post-balance sheet events, securities transactions, investments, corporate governance, and publication details [1. Post Balance Sheet Events](index=25&type=section&id=1.%20Post%20Balance%20Sheet%20Events) The acquisition of a subsidiary under the claim transfer agreement and asset-for-debt agreement was completed on August 4, 2025 - The transaction for the acquisition of a subsidiary under the claim transfer agreement and the asset-for-debt agreement was completed on August 4, 2025[73](index=73&type=chunk) [2. Purchase, Sale or Redemption of the Company's Listed Securities](index=25&type=section&id=2.%20Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, redeemed, or sold any of the Company's listed securities during the period, and no treasury shares were held as of June 30, 2025 - During the period, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[74](index=74&type=chunk) - As of June 30, 2025, the Company did not hold any treasury shares[74](index=74&type=chunk) [3. Material Investments Held](index=25&type=section&id=3.%20Material%20Investments%20Held) The Group held no material investments in the equity of any company during the period - The Group held no material investments in the equity of any company during the period[75](index=75&type=chunk) [4. Significant Acquisitions and Disposals of Subsidiaries and Associates](index=25&type=section&id=4.%20Significant%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%20and%20Associates) The Group acquired a subsidiary during the period, as detailed in Note 16 to the financial statements, with no other significant acquisitions or disposals of subsidiaries and associates - During the period, the Group acquired a subsidiary, details of which are disclosed in Note 16 to the financial statements in this announcement[76](index=76&type=chunk) - Save as disclosed above, the Group had no other significant acquisitions or disposals of subsidiaries and associates during the period[77](index=77&type=chunk) [5. Corporate Governance Code](index=25&type=section&id=5.%20Corporate%20Governance%20Code) The Company complied with all code provisions of the Corporate Governance Code set out in Appendix C1 to the HKEX Listing Rules during the period - During the period, the Company complied with all code provisions of the Corporate Governance Code set out in Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[78](index=78&type=chunk) [6. Standard Code for Securities Transactions by Directors](index=25&type=section&id=6.%20Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company adopted and confirmed compliance by all directors with the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules[79](index=79&type=chunk) - Following specific enquiries made to all Directors, the Company confirmed that each of them has complied with the required standards set out in the Standard Code throughout the period[79](index=79&type=chunk) [7. Audit Committee](index=26&type=section&id=7.%20Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, advises on external auditor appointments and oversees financial reporting, internal controls, risk management, and corporate governance, having reviewed the unaudited interim financial results - The Audit Committee comprises three members, namely Mr. Lu Shidong, Mr. Liu Dengqing, and Dr. Chu Fumin, with Mr. Lu Shidong serving as the Chairman of the Audit Committee[80](index=80&type=chunk) - The primary duties of the Audit Committee are to advise the Board on the appointment and removal of external auditors and to assist the Board in fulfilling its oversight responsibilities related to the Group's financial reporting, internal control structure, risk management process, external audit function, and corporate governance responsibilities[80](index=80&type=chunk) - The Audit Committee held a meeting on August 26, 2025, and reviewed the unaudited interim financial results for the six months ended June 30, 2025[80](index=80&type=chunk) [8. Interim Dividends](index=26&type=section&id=8.%20Interim%20Dividends) The Board recommended no interim dividend for the six months ended June 30, 2025 - The Board recommended no interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: RMB 0.03 per ordinary share)[81](index=81&type=chunk) [9. Public Float](index=26&type=section&id=9.%20Public%20Float) The Company maintained the prescribed public float under the Listing Rules throughout the period and up to the date of the announcement - During the period and as of the date of this announcement, the Company maintained the public float as prescribed by the Listing Rules[82](index=82&type=chunk) [10. Publication of Interim Results Announcement and Interim Report](index=26&type=section&id=10.%20Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) The interim results announcement is available on the HKEX and Company websites, and the interim report will be published and dispatched to shareholders in due course - This interim results announcement is available on the HKEX website www.hkexnews.hk and the Company's website www.blchina.com[83](index=83&type=chunk)[84](index=84&type=chunk) - The Company's interim report for the period, containing all information required by the Listing Rules, will be published on the aforementioned websites and dispatched to shareholders who have indicated their wish to receive printed copies in due course[83](index=83&type=chunk)

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) The Group achieved significant growth in revenue, gross profit, and net profit for H1 2025, successfully turning losses into profits [Financial Highlights](index=1&type=section&id=Financial%20Highlights) The Group achieved significant growth in revenue, gross profit, and net profit for H1 2025, successfully turning losses into profits Key Financial Data for H1 2025 | Indicator | H1 2025 (RMB million) | YoY Growth | H1 2024 (RMB million) | | :--- | :--- | :--- | :--- | | Revenue | 3,172.0 | 71.9% | 1,844.8 | | Gross Profit | 568.7 | 210.5% | 183.1 | | Net Profit | 220.4 | Increased by 350.4 | (130.0) | | Basic and Diluted Earnings Per Share | 0.09 RMB | Increased by 0.15 RMB | (0.06) RMB | [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents the company's interim condensed consolidated financial statements for the reporting period [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The statement shows H1 2025 revenue of RMB 3.172 billion, gross profit of RMB 569 million, and net profit of RMB 220 million, reversing prior year's loss Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Summary) | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 3,172,028 | 1,844,800 | | Cost of sales | (2,581,469) | (1,640,608) | | Impairment loss on inventories | (21,875) | (21,050) | | Gross profit | 568,684 | 183,142 | | Other income and gains | 27,267 | 22,245 | | Selling and marketing expenses | (16,404) | (16,578) | | Administrative expenses | (172,723) | (134,885) | | Research and development expenses | (252,858) | (260,327) | | Profit/(loss) before taxation | 213,480 | (136,524) | | Profit/(loss) and total comprehensive income for the period | 220,425 | (130,034) | | Profit/(loss) attributable to owners of the parent company | 220,425 | (130,034) | | Basic and diluted earnings/(loss) per share (RMB) | 0.09 | (0.06) | [Interim Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets and net assets increased, with net current assets turning positive, improving the financial structure Interim Condensed Consolidated Statement of Financial Position (Summary) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total non-current assets | 10,650,641 | 9,861,915 | | Total current assets | 6,596,912 | 5,732,316 | | Total current liabilities | 6,459,435 | 6,496,681 | | Net current assets/(liabilities) | 137,477 | (764,365) | | Total non-current liabilities | 3,749,737 | 3,200,428 | | Net assets | 7,038,381 | 5,897,122 | | Total equity | 7,038,381 | 5,897,122 | [Notes to the Interim Condensed Consolidated Financial Information](index=5&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes on company information, accounting policies, and specific financial item breakdowns [Company and Group Information](index=5&type=section&id=Company%20and%20Group%20Information) The company, incorporated in China in 2019, focuses on R&D, production, and sales of power, energy storage, and aviation battery products - The company was incorporated in China on February 26, 2019, and restructured into a joint-stock company on July 17, 2024[7](index=7&type=chunk) - The company and its subsidiaries primarily focus on the research, development, production, and sales of power battery products, energy storage battery products, and aviation battery products[7](index=7&type=chunk) [Basis of Preparation](index=5&type=section&id=Basis%20of%20Preparation) The interim financial information is prepared under IAS 34 and should be read with the 2024 annual consolidated financial statements - The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 — Interim Financial Reporting[8](index=8&type=chunk) [Changes in Accounting Policies and Disclosures](index=5&type=section&id=Changes%20in%20Accounting%20Policies%20and%20Disclosures) This period's financial information adopts revised IFRS, but has no significant impact due to currency convertibility - This period's financial information first adopted the revised International Accounting Standard 21, 'Lack of Exchangeability'[9](index=9&type=chunk)[10](index=10&type=chunk) - The revisions have no impact on the interim condensed consolidated financial information as the Group's transaction currencies are convertible[10](index=10&type=chunk) [Operating Segment Information and Revenue](index=5&type=section&id=Operating%20Segment%20Information%20and%20Revenue) No separate segment data is presented; almost all revenue and non-current assets are from mainland China, with major customers contributing over 10% - The Group does not present operating segment information as it focuses on overall operating performance[11](index=11&type=chunk) - Almost all of the Group's non-current assets and revenue are derived from mainland China[12](index=12&type=chunk) - For the six months ended June 30, 2025, approximately **RMB 2.823 billion** in revenue was generated from sales to customers contributing over **10%** of total revenue[13](index=13&type=chunk) [Revenue, Other Income and Gains](index=6&type=section&id=Revenue%2C%20Other%20Income%20and%20Gains) H1 2025 total revenue was RMB 3.172 billion, primarily from power batteries, with other income from government grants and interest Revenue by Product Category | Product Category | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Power Batteries | 2,985,306 | 1,641,029 | | Energy Storage Systems and Others | 186,722 | 203,771 | | Total Revenue from Customer Contracts | 3,172,028 | 1,844,800 | Analysis of Other Income and Gains | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Government grants | 11,218 | 524 | | Interest income | 14,962 | 19,683 | | Total other income | 27,267 | 21,482 | | Net exchange gains | – | 763 | | Total other income and gains | 27,267 | 22,245 | - Almost all of the Group's revenue is derived from mainland China operations, with overseas market revenue being insignificant[15](index=15&type=chunk) [Profit/(Loss) Before Taxation](index=7&type=section&id=Profit%2F%28Loss%29%20Before%20Taxation) H1 2025 profit before taxation was RMB 213 million, a significant improvement from prior year's loss, influenced by costs and impairment Composition of Profit/(Loss) Before Taxation | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of sales of goods | 2,581,469 | 1,640,608 | | Net impairment losses on financial assets and contract assets | 5,182 | (921) | | Impairment loss on inventories | 21,875 | 21,050 | | Net exchange differences | 15,966 | (763) | [Income Tax Expense](index=7&type=section&id=Income%20Tax%20Expense) Mainland China subsidiaries enjoy a 15% preferential tax rate as high-tech enterprises, resulting in a negative income tax expense for the period - Mainland China subsidiaries are subject to a statutory tax rate of 25%, but the company, as a high-tech enterprise, enjoys a preferential tax rate of **15%**[20](index=20&type=chunk) Income Tax Expense Details | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Current income tax | 75 | – | | Deferred tax | (7,020) | (6,490) | | Income tax expense charged to profit or loss | (6,945) | (6,490) | [Dividends](index=7&type=section&id=Dividends) No dividends were paid or declared by the company for the six months ended June 30, 2025 - No dividends were paid or declared by the company for the six months ended June 30, 2025[23](index=23&type=chunk) [Earnings/(Loss) Per Share Attributable to Ordinary Equity Holders of the Parent Company](index=8&type=section&id=Earnings%2F%28Loss%29%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Parent%20Company) Basic and diluted EPS for the period was RMB 0.09, reversing a prior year loss, with no dilutive shares issued Earnings/(Loss) Per Share | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit/(loss) attributable to owners of the parent company (RMB thousand) | 220,425 | (130,034) | | Weighted average number of ordinary shares outstanding | 2,439,248,241 | 2,255,935,152 | | Basic and diluted earnings/(loss) per share (RMB) | 0.09 | (0.06) | - The Group did not issue any potentially dilutive ordinary shares during the period[25](index=25&type=chunk) [Property, Plant and Equipment](index=8&type=section&id=Property%2C%20Plant%20and%20Equipment) Acquisitions of property, plant and equipment significantly increased to RMB 872 million, alongside a net loss on disposal Changes in Property, Plant and Equipment | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Acquisitions | 871,700 | 193,170 | | Net loss on disposal | 11,105 | – | [Right-of-Use Assets](index=8&type=section&id=Right-of-Use%20Assets) Acquisition of land use rights amounted to RMB 344 million in the current period, with no prior year expenditure Acquisition of Land Use Rights | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Acquisition of land use rights | 344,397 | – | [Other Intangible Assets](index=8&type=section&id=Other%20Intangible%20Assets) Intangible asset acquisitions increased to RMB 8.314 million in the current period compared to the prior year Acquisition of Intangible Assets | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Acquisition of intangible assets | 8,314 | 389 | [Investments in Joint Ventures](index=8&type=section&id=Investments%20in%20Joint%20Ventures) As of June 30, 2025, investments in joint ventures totaled RMB 3.311 billion, slightly lower due to decreased share of net assets Investments in Joint Ventures | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Share of net assets | 428,749 | 584,967 | | Goodwill on acquisition | 2,882,206 | 2,882,206 | | Total | 3,310,955 | 3,467,173 | [Trade and Bills Receivables](index=9&type=section&id=Trade%20and%20Bills%20Receivables) Net trade and bills receivables increased to RMB 1.752 billion, mostly current, with a slight increase in impairment losses Trade and Bills Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables | 2,255,012 | 1,860,218 | | Less: Impairment losses | 627,055 | 624,065 | | Net book value | 1,752,203 | 1,623,305 | Aging Analysis of Trade and Bills Receivables | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 months | 1,738,205 | 1,412,318 | | 3 to 6 months | 6,400 | 196,026 | | 6 months to 1 year | 2,168 | 7,753 | | 1 to 2 years | 5,430 | 7,208 | | Total | 1,752,203 | 1,623,305 | [Trade and Bills Payables](index=9&type=section&id=Trade%20and%20Bills%20Payables) Total trade and bills payables were RMB 3.540 billion, slightly down from 2024 year-end, with most due within one year Aging Analysis of Trade and Bills Payables | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 3,539,059 | 3,741,138 | | 1 to 2 years | 1,423 | 1,394 | | 2 to 3 years | – | 54 | | Total | 3,540,482 | 3,742,586 | [Other Payables and Accrued Expenses](index=10&type=section&id=Other%20Payables%20and%20Accrued%20Expenses) Other payables and accrued expenses decreased to RMB 1.119 billion, mainly due to reduced payables for property, plant and equipment and related parties Other Payables and Accrued Expenses | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Payables for purchase of property, plant and equipment | 932,153 | 1,160,950 | | Accrued salaries and welfare | 77,412 | 63,117 | | Accrued listing expenses | – | 11,569 | | Amounts due to related parties | 369 | 108,567 | | Total | 1,119,202 | 1,427,848 | [Share Capital](index=10&type=section&id=Share%20Capital) Share capital increased to RMB 2.509 billion, primarily from IPO-related ordinary share issuance and 2024 Series B investor contributions Summary of Share Capital Movements | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Beginning of period/year | 2,386,976 | 2,255,935 | | Share capital | 2,508,500 | 2,386,976 | | Shareholder contributions | – | 131,041 | | Issuance of ordinary shares related to initial public offering | 121,524 | – | | End of period/year | 2,508,500 | 2,386,976 | - The company was listed on the Stock Exchange on April 14, 2025, issuing **121,523,700** ordinary shares at **HKD 8.27** per share, raising approximately **HKD 1.005 billion**[35](index=35&type=chunk) [Commitments](index=11&type=section&id=Commitments) Capital commitments significantly increased to RMB 1.862 billion, primarily related to property, plant and equipment Capital Commitments | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Property, plant and equipment | 1,862,150 | 109,225 | [Related Party Transactions](index=11&type=section&id=Related%20Party%20Transactions) Transactions mainly involved leasing and labor services, with key management personnel remuneration totaling RMB 8.551 million Related Party Transactions | Transaction Type | Related Party | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | :--- | | Receiving leasing services | Nanjing Airport Hub Economic Zone Investment Development Co., Ltd. | 416 | 502 | | Receiving leasing services | Jiangsu Aicheng New Energy Technology Co., Ltd. | 1,959 | 1,959 | | Receiving labor dispatch services | Jiangsu Aicheng New Energy Technology Co., Ltd. | – | 160 | Key Management Personnel Remuneration | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Short-term employee benefits | 4,704 | 5,137 | | Share-based payment expenses | 3,386 | 3,575 | | Social insurance and housing provident fund contributions | 461 | 376 | | Total remuneration paid to key management personnel | 8,551 | 9,088 | [Fair Value and Fair Value Hierarchy of Financial Instruments](index=12&type=section&id=Fair%20Value%20and%20Fair%20Value%20Hierarchy%20of%20Financial%20Instruments) Financial instrument fair value measurements focus on bills receivables, using Level 2, with no significant changes - The Group's policies and procedures for fair value measurement of financial instruments are the responsibility of the finance department and approved by the Chief Financial Officer[40](index=40&type=chunk) - The fair value changes of bills receivables measured at fair value through other comprehensive income were assessed as insignificant as of June 30, 2025[40](index=40&type=chunk) Fair Value Hierarchy of Assets | Fair Value Measurement Hierarchy | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Level 2 (Significant observable inputs) | 242,724 | 92,936 | | Total | 242,724 | 92,936 | [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) This section discusses the Group's financial performance, industry trends, business operations, and future outlook [Industry Overview](index=14&type=section&id=Industry%20Overview) Global EV market growth drives power battery demand; energy storage sees significant deployment; low-altitude economy emerges with aviation battery needs [Power Battery Market](index=14&type=section&id=Power%20Battery%20Market) Global EV sales grew 28% in H1 2025, with China leading; domestic power battery sales increased 51.6%, especially LFP - Global electric vehicle sales reached **9.1 million units** in H1 2025, a **28% year-on-year increase**[45](index=45&type=chunk) - In H1 2025, China's new energy vehicle production and sales increased by **41.4%** and **40.3%** respectively, with market penetration reaching **44.3%**[45](index=45&type=chunk) - In H1 2025, China's cumulative power battery sales reached **485.5 GWh**, a **51.6% year-on-year increase**, with LFP battery sales growing by **77.6%**[45](index=45&type=chunk) [Energy Storage Market](index=15&type=section&id=Energy%20Storage%20Market) Global battery energy storage deployment reached 86.7 GWh in H1 2025, growing 54%, with China as the largest market - Global battery energy storage system deployment capacity reached **86.7 GWh** in H1 2025, a **54% year-on-year increase**[47](index=47&type=chunk) - China is the world's largest single energy storage market, with unparalleled installed capacity[47](index=47&type=chunk) [Low-Altitude Economy](index=15&type=section&id=Low-Altitude%20Economy) A national strategic industry, projected to reach RMB 1.5 trillion by 2025, with electric aviation driving demand for certified aviation-grade batteries - China's low-altitude economy market size is projected to reach **RMB 1.5 trillion** by 2025 and potentially **RMB 3.5 trillion** by 2035[48](index=48&type=chunk) - Electric aviation is one of the core technological carriers for the industrial transformation of the low-altitude economy[48](index=48&type=chunk) - Aviation-grade power battery enterprises need to overcome the significant challenges of airworthiness certification, which involves long cycles and high costs, as a key market entry barrier[48](index=48&type=chunk) [Business Review](index=15&type=section&id=Business%20Review) The Group, a lithium-ion battery manufacturer, achieved over 80% growth in power battery revenue, benefited from overseas energy storage demand, and mass-produced certified aviation batteries [Principal Business](index=15&type=section&id=Principal%20Business) The company manufactures lithium-ion batteries for power, energy storage, and aviation, offering integrated solutions to expand electrochemical product applications - The company primarily focuses on the research, development, production, and sales of power battery products, energy storage battery products, and aviation battery products[49](index=49&type=chunk) - The company provides integrated solutions including cells, modules, battery packs, battery clusters, and battery management systems[49](index=49&type=chunk) - The company is committed to expanding the large-scale application of electrochemical products under the Land, Sea, Air Interconnection (LISA) framework[49](index=49&type=chunk) [Principal Products](index=16&type=section&id=Principal%20Products) Products include power batteries for various EV models, home/large-scale/commercial energy storage, and aviation batteries for electric aircraft - Power battery products cover BEV, PHEV, EREV, and HEV models, catering to the needs of sedans, SUVs, MPVs, and other multi-purpose vehicles[51](index=51&type=chunk) - Energy storage products cover home energy storage, large-scale energy storage, and commercial and industrial energy storage[51](index=51&type=chunk) - Aviation battery products can be applied to electric manned fixed-wing aircraft and eVTOLs[51](index=51&type=chunk) [Business Achievements](index=16&type=section&id=Business%20Achievements) Power battery revenue and shipments grew over 80%, improving market ranking; energy storage benefited from overseas demand; aviation batteries achieved certification and mass production [Power Battery Business](index=16&type=section&id=Power%20Battery%20Business) In H1 2025, power battery business sales revenue reached RMB 2.985 billion and shipments reached 7.63 GWh, both growing over 80% year-on-year, with the company's ranking in new energy passenger vehicle installations rising to 7th nationally and 6th in June, deepening cooperation with leading automakers - In H1 2025, power battery business sales revenue was **RMB 2.985 billion**, and shipments were **7.63 GWh**, with both sales revenue and shipments increasing by over **80% year-on-year**[52](index=52&type=chunk) - The company ranked **7th** in new energy passenger vehicle installations from January to June 2025, and its single-month ranking in June rose to **6th** nationally[52](index=52&type=chunk) - The company's supply share of battery products for core models of multiple global leading enterprises, including FAW Hongqi, GAC Trumpchi, Leapmotor, SAIC-GM-Wuling, SAIC-GM, GAC Toyota, and Volkswagen, continues to increase[53](index=53&type=chunk) [Energy Storage and Other Businesses](index=17&type=section&id=Energy%20Storage%20and%20Other%20Businesses) The energy storage business benefited from robust overseas demand, with 104Ah standardized cells sold to markets in Asia, Africa, and Latin America, while the aviation battery business obtained airworthiness certification for the RX1E fixed-wing manned electric aircraft and will achieve mass production this year, utilizing second-generation "three-high-one-fast" dual semi-solid technology - The company's self-developed **104Ah standardized cell** has become one of the main supply products for global home energy storage, sold to markets in Asia, Africa, and Latin America[54](index=54&type=chunk) - The company's aircraft aviation battery business has obtained airworthiness certification with the Liaoning General Aviation fixed-wing manned electric aircraft RX1E and will achieve mass production[54](index=54&type=chunk) - The company's mass-produced second-generation 'three-high-one-fast' aviation power battery adopts dual semi-solid technology, featuring high safety, high energy density, high power, and fast charging capabilities[54](index=54&type=chunk) [Technology Iteration and Innovation](index=18&type=section&id=Technology%20Iteration%20and%20Innovation) Breakthroughs in advanced materials, technology platforms, and cutting-edge battery tech, including high-density LFP, fast-charging products, and solid-state batteries - In advanced materials, the focus is on developing key materials such as high-density LFP, high-safety high-nickel materials, 8C+ fast-charging graphite, new silicon-carbon anodes, and new electrolytes[55](index=55&type=chunk) - In advanced technology platforms, the company achieved development of ultra-fast charging **6C LFP** products, high-energy ternary (silicon-based) systems with energy densities covering **280-350 Wh/kg**, and sodium-ion batteries with energy densities exceeding **170 Wh/kg**[55](index=55&type=chunk) - In cutting-edge battery technology, lithium-metal batteries achieved an energy density of **400 Wh/kg**, the second-generation 'three-high-one-fast' dual semi-solid large cylindrical battery is mass-produced in the aviation battery sector, and the construction of a sulfide all-solid-state battery pilot line is actively progressing[55](index=55&type=chunk) [Product Refinement and Upgrades](index=19&type=section&id=Product%20Refinement%20and%20Upgrades) Enhanced efficiency via smart manufacturing; products achieved 5C/8C fast charging, high specific energy, long life, high safety, and mass-produced aviation batteries - In smart manufacturing, the company achieved automatic detection of manufacturing defects through **5um ultra-thin separators**, AI vision and big data analysis, and full-stack self-development of CTP production line software[57](index=57&type=chunk) - Ternary system power products achieved **5C fast charging** at 400V peak and **8C ultra-fast charging** at 800V peak, with energy density exceeding **240 Wh/kg**[57](index=57&type=chunk) - Phosphate system power products achieved high specific energy LFP cells with a volumetric energy density of **435 Wh/L**, and 800V 4C fast-charging products with a cycle life of **4,000 cycles**[57](index=57&type=chunk) - Home energy storage products feature long-cycle batteries with energy efficiency exceeding **95%** and a cycle life greater than **8,000 cycles**[58](index=58&type=chunk) - The '45℃ never thermal runaway' ternary battery system passed multiple stringent safety tests, exceeding national standards required by 2026[58](index=58&type=chunk) - The second-generation 'three-high-one-fast' aviation battery has an energy density exceeding **320 Wh/kg**, supports **15-minute fast charging**, and has been mass-produced and delivered[58](index=58&type=chunk) [Future Outlook](index=20&type=section&id=Future%20Outlook) Plans include increased capacity to 50.5 GWh by 2026, expanded customer base, overseas market growth, and continued investment in flash charging, solid-state, and embodied AI [Further Capacity Enhancement](index=20&type=section&id=Further%20Capacity%20Enhancement) Current capacity 25.5 GWh, plans to reach 50.5 GWh by end of 2026 with advanced, flexible production lines - The company's existing capacity is **25.5 GWh**, with plans to add **10 GWh** by Q4 2025 and another **15 GWh** by the end of 2026, bringing total capacity to **50.5 GWh**[59](index=59&type=chunk) - New production lines will be equipped with advanced technology and equipment to improve production automation and intelligence, and reduce energy consumption and carbon emissions[59](index=59&type=chunk) - The company plans to explore technology for producing different products on the same production line to enhance line flexibility[60](index=60&type=chunk) [Continuous Customer Expansion](index=21&type=section&id=Continuous%20Customer%20Expansion) Plans to launch new EV battery products, deepen existing customer relationships, and actively expand into overseas markets - The company plans to launch new battery products for vehicles with different power sources, uses, and cruising ranges[61](index=61&type=chunk) - The company continuously strengthens and deepens relationships with existing customers and establishes business cooperation with new customers[61](index=61&type=chunk) - The company actively explores overseas market business, supporting customers' export models as a core component supplier, with products already sold to Hong Kong, India, Indonesia, the EU, and other markets[61](index=61&type=chunk) [Technological Re-innovation](index=21&type=section&id=Technological%20Re-innovation) Focus on flash charging materials, high-nickel/silicon-carbon R&D, platform upgrades, sulfide all-solid-state batteries, and embodied AI in production - In advanced materials, the company continues to focus on flash charging system material research, concentrating on graphite anodes with **10C+ charging capability** and new electrolyte system development[62](index=62&type=chunk) - In cutting-edge battery technology, the focus is on sulfide electrolyte development to launch high-safety, high-specific energy sulfide all-solid-state batteries, and actively promote the construction of a **100 MWh** all-solid-state battery pilot line[62](index=62&type=chunk) - In smart manufacturing, the company promotes the application of embodied AI technology in production lines to replace manual labor[62](index=62&type=chunk) [Overview](index=22&type=section&id=Overview) H1 2025 revenue grew 71.9% to RMB 3.172 billion; net profit turned from loss to RMB 220 million; EPS increased from -RMB 0.06 to RMB 0.09 - The Group's revenue increased by **71.9%** from **RMB 1.8448 billion** in H1 2024 to **RMB 3.172 billion** in H1 2025[63](index=63&type=chunk) - Net profit for the period increased from a loss of **RMB 130 million** in H1 2024 to a profit of **RMB 220 million** in H1 2025, a year-on-year increase of **RMB 350.4 million**[63](index=63&type=chunk) - Earnings per share increased from **-RMB 0.06** in H1 2024 to **RMB 0.09** in H1 2025, an increase of **RMB 0.15**[63](index=63&type=chunk) [Key Financial Indicators](index=22&type=section&id=Key%20Financial%20Indicators) H1 2025 showed strong performance with significant growth in revenue, gross profit, and net profit, improved margins, and positive EPS Comparison of Key Financial Indicators | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 3,172,028 | 1,844,800 | 71.9% | | Gross Profit | 568,684 | 183,142 | 210.5% | | Gross Margin (%) | 17.9 | 9.9 | Increased by 8 percentage points | | Net Profit | 220,425 | (130,034) | Turned loss into profit | | Net Sales Margin (%) | 6.9 | (7.0) | Significantly improved | | Earnings Per Share (RMB) | 0.09 | (0.06) | Turned loss into profit | [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Management Discussion)](index=23&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income%20%28Management%20Discussion%29) Management highlights significant growth in revenue, gross profit, and net profit, reflecting strong operating performance recovery Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Management Discussion Summary) | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 3,172,028 | 1,844,800 | | Gross Profit | 568,684 | 183,142 | | Profit/(Loss) Before Taxation | 213,480 | (136,524) | | Profit/(Loss) and Total Comprehensive Income for the Period | 220,425 | (130,034) | | Basic and Diluted Earnings/(Loss) Per Share (RMB) | 0.09 | (0.06) | [Revenue Analysis](index=24&type=section&id=Revenue%20Analysis) H1 2025 revenue grew 71.9% to RMB 3.172 billion, driven by power battery shipments; energy storage revenue decreased due to capacity prioritization - The Group's revenue increased by **71.9% year-on-year**, primarily due to a significant increase in power battery shipments[67](index=67&type=chunk) Revenue Breakdown by Product Type | Item | H1 2025 Revenue (RMB thousand) | Revenue Share (%) | H1 2024 Revenue (RMB thousand) | Revenue Share (%) | | :--- | :--- | :--- | :--- | :--- | | Power Batteries | 2,985,306 | 94.1 | 1,641,029 | 89.0 | | Energy Storage System Products and Others | 186,722 | 5.9 | 203,771 | 11.0 | | Total | 3,172,028 | 100.0 | 1,844,800 | 100.0 | - Revenue from energy storage products and others decreased by **8.4%**, mainly because the company's current capacity is tight, and production lines are primarily used for power battery products[68](index=68&type=chunk) [Cost of Sales](index=24&type=section&id=Cost%20of%20Sales) H1 2025 cost of sales increased 56.7% to RMB 2.603 billion, primarily due to higher power battery product sales volume - Cost of sales increased by **56.7%** to **RMB 2.603 billion**, primarily due to a significant increase in power battery product sales volume[69](index=69&type=chunk) [Gross Profit and Gross Margin Analysis](index=25&type=section&id=Gross%20Profit%20and%20Gross%20Margin%20Analysis) H1 2025 gross profit grew 210.5% to RMB 569 million; gross margin improved 8 percentage points to 17.9%, driven by sales volume and cost improvements Gross Profit and Gross Margin by Product Type | Item | H1 2025 Gross Profit (RMB thousand) | Gross Margin (%) | H1 2024 Gross Profit (RMB thousand) | Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Power Batteries | 546,243 | 18.3 | 182,620 | 11.1 | | Energy Storage System Products and Others | 22,441 | 12.0 | 522 | 0.3 | | Total | 568,684 | 17.9 | 183,142 | 9.9 | - Gross profit increased by **210.5%**, and gross margin improved by **8 percentage points** to **17.9%**[70](index=70&type=chunk) - The increase in power battery gross profit and gross margin was primarily due to a significant increase in sales volume, economies of scale, and quality and efficiency improvement activities[71](index=71&type=chunk) [Other Income and Gains](index=25&type=section&id=Other%20Income%20and%20Gains) H1 2025 other income and gains increased 23.0% to RMB 27.3 million, mainly due to additional VAT deductions - Other income and gains increased by **23.0%** to **RMB 27.3 million**, primarily due to additional VAT deductions[72](index=72&type=chunk) [Selling and Marketing Expenses](index=25&type=section&id=Selling%20and%20Marketing%20Expenses) H1 2025 selling and marketing expenses slightly decreased to RMB 16.4 million - Selling and marketing expenses decreased from **RMB 16.6 million** to **RMB 16.4 million**[73](index=73&type=chunk) [Administrative Expenses](index=26&type=section&id=Administrative%20Expenses) H1 2025 administrative expenses increased 28.0% to RMB 173 million, primarily due to increased listing expenses - Administrative expenses increased by **28.0%** to **RMB 172.7 million**, primarily due to increased listing expenses[74](index=74&type=chunk) [Research and Development Expenses](index=26&type=section&id=Research%20and%20Development%20Expenses) H1 2025 research and development expenses slightly decreased to RMB 253 million - Research and development expenses decreased from **RMB 260.3 million** to **RMB 252.9 million**[75](index=75&type=chunk) [Net Impairment Losses on Financial Assets and Contract Assets](index=26&type=section&id=Net%20Impairment%20Losses%20on%20Financial%20Assets%20and%20Contract%20Assets) H1 2025 net impairment losses turned to a RMB 5.2 million loss, due to increased credit impairment from higher receivables - Net impairment losses on financial assets and contract assets turned from a gain in the prior year to a loss of **RMB 5.2 million**, primarily due to increased provision for credit impairment losses from higher accounts receivable balances[76](index=76&type=chunk) [Other Expenses](index=26&type=section&id=Other%20Expenses) H1 2025 other expenses significantly increased to RMB 27.3 million, primarily due to increased exchange losses on foreign currency deposits - Other expenses significantly increased to **RMB 27.3 million**, primarily due to increased exchange losses on foreign currency deposits[77](index=77&type=chunk) [Finance Costs](index=26&type=section&id=Finance%20Costs) H1 2025 finance costs increased 6.9% to RMB 68.2 million, primarily due to increased interest expenses on borrowings - Finance costs increased by **6.9%** to **RMB 68.2 million**, primarily due to increased interest expenses on borrowings[78](index=78&type=chunk) [Share of Profits of Joint Ventures](index=26&type=section&id=Share%20of%20Profits%20of%20Joint%20Ventures) H1 2025 share of profits of joint ventures increased 19.8% to RMB 160 million, mainly from Xinzhongyuan Toyota - Share of profits of joint ventures increased by **19.8%** to **RMB 160.3 million**, primarily due to increased net profit from the joint venture Xinzhongyuan Toyota[79](index=79&type=chunk) [Profit for the Period](index=26&type=section&id=Profit%20for%20the%20Period) H1 2025 net profit turned from a RMB 130 million loss to a RMB 220 million profit, benefiting from revenue growth and improved gross margin - Net profit for the period turned from a loss of **RMB 130 million** in the prior year to a profit of **RMB 220 million**, a year-on-year increase of **RMB 350.4 million**[80](index=80&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) The Group maintains sufficient liquidity through financing and cash flows, with increased cash, higher borrowings, and a reduced gearing ratio [Cash and Cash Equivalents](index=27&type=section&id=Cash%20and%20Cash%20Equivalents) As of June 30, 2025, cash and cash equivalents increased to RMB 2.549 billion, primarily in RMB - As of June 30, 2025, the Group's cash and cash equivalents were **RMB 2.5487 billion**, an increase from **RMB 2.1991 billion** as of December 31, 2024[82](index=82&type=chunk) [Bank and Other Borrowings](index=27&type=section&id=Bank%20and%20Other%20Borrowings) As of June 30, 2025, total interest-bearing borrowings increased to RMB 4.969 billion, with 33.9% due within one year - As of June 30, 2025, the Group's interest-bearing bank and other borrowings were approximately **RMB 4.9689 billion**, an increase from **RMB 4.0145 billion** as of December 31, 2024[83](index=83&type=chunk) - As of June 30, 2025, **33.9%** of interest-bearing bank and other borrowings were due within one year, with the remainder due after one year[83](index=83&type=chunk) [Capital Structure](index=27&type=section&id=Capital%20Structure) As of June 30, 2025, net assets were RMB 7.038 billion, and the gearing ratio decreased to 59.2%, indicating improved capital structure - As of June 30, 2025, the Group's net assets were **RMB 7.0384 billion**[84](index=84&type=chunk) - As of June 30, 2025, the Group's gearing ratio (total liabilities divided by total assets) was **59.2%**, a decrease from **62.2%** as of December 31, 2024[84](index=84&type=chunk) [Cash Flows](index=27&type=section&id=Cash%20Flows) H1 2025 saw net operating cash inflow of RMB 126 million, net investing cash outflow of RMB 1.303 billion, and net financing cash inflow of RMB 1.784 billion Net Cash Flows | Activity Type | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Net cash flow from operating activities | 125.8 | 305.4 | | Net cash flow from investing activities | (1,302.5) | (438.6) | | Net cash flow from financing activities | 1,783.7 | 234.0 | [Interest Rate Risk and Exchange Rate Risk](index=28&type=section&id=Interest%20Rate%20Risk%20and%20Exchange%20Rate%20Risk) The Group manages market interest rate risk, primarily from floating-rate debt, through a mix of fixed and floating-rate borrowings - The Group's market interest rate fluctuation risk is primarily related to floating-rate long-term debt[86](index=86&type=chunk) - The Group manages interest costs by using a mix of fixed and floating-rate debt[87](index=87&type=chunk) [Capital Expenditure and Commitments](index=28&type=section&id=Capital%20Expenditure%20and%20Commitments) H1 2025 capital expenditure was RMB 1.598 billion, mainly for property, plant and equipment; commitments totaled RMB 1.862 billion - Capital expenditure in H1 2025 was approximately **RMB 1.5984 billion**, primarily related to the purchase of property, plant and equipment, right-of-use assets, and other intangible assets[88](index=88&type=chunk) - As of June 30, 2025, capital commitments were **RMB 1.8622 billion**, related to property, plant and equipment[88](index=88&type=chunk) [Restricted Assets](index=28&type=section&id=Restricted%20Assets) As of June 30, 2025, total restricted assets were RMB 4.455 billion, used to secure bank loans and other financing - As of June 30, 2025, the Group had restricted assets with a total carrying value of **RMB 4.4547 billion**[89](index=89&type=chunk) - Restricted assets primarily include restricted bank deposits of **RMB 924.1 million**, property, plant and equipment of **RMB 3.1387 billion**, and right-of-use assets of **RMB 391.9 million**[89](index=89&type=chunk) - Restricted assets are primarily used to obtain bank loans, other bank financing, and issue bank acceptance bills[89](index=89&type=chunk) [Significant Investments](index=28&type=section&id=Significant%20Investments) As of June 30, 2025, the Group held no significant investments valued at 5% or more of its total assets - As of June 30, 2025, the Group had not made or held any significant investments valued at **5% or more** of its total assets[90](index=90&type=chunk) [Significant Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=28&type=section&id=Significant%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) In H1 2025, the Group had no significant acquisitions or disposals of subsidiaries or associates - For the six months ended June 30, 2025, the Group had no significant acquisitions or disposals of subsidiaries or associates[91](index=91&type=chunk) [Future Plans for Material Investments or Capital Assets](index=28&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) Beyond prospectus disclosures, no other significant investment plans exist, but the Group will seek new business opportunities - Apart from the expansion plans disclosed in the prospectus, the Group has no specific plans for significant investments or acquisitions of material capital assets or other businesses[92](index=92&type=chunk) - The Group will continue to seek new business development opportunities[92](index=92&type=chunk) [Contingent Liabilities](index=28&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities, guarantees, or pending litigations - As of June 30, 2025, the Group had no significant contingent liabilities, guarantees, or any material litigation or claims pending or threatened against any member of the Group[93](index=93&type=chunk) [Events After the Reporting Period](index=28&type=section&id=Events%20After%20the%20Reporting%20Period) As of the announcement date, the Group had no significant events after the reporting period of June 30, 2025 - As of the date of this interim results announcement, the Group had no significant events after the reporting period of June 30, 2025[94](index=94&type=chunk) [Other Information](index=29&type=section&id=Other%20Information) This section covers corporate governance, securities trading compliance, share transactions, dividends, audit committee review, and interim results publication [Compliance with Corporate Governance Code](index=29&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company adopted and complied with the Corporate Governance Code from its listing date to June 30, 2025 - The company has adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules[95](index=95&type=chunk) - The Board believes that the company has complied with the applicable provisions of the Corporate Governance Code for the period from its listing date to June 30, 2025[95](index=95&type=chunk) [Compliance with Standard Code for Securities Transactions by Directors and Supervisors](index=29&type=section&id=Compliance%20with%20Standard%20Code%20for%20Securities%20Transactions%20by%20Directors%20and%20Supervisors) The company established a "Company Code" for securities transactions by directors, supervisors, senior management, and relevant employees, confirming compliance by all directors and supervisors - The company has established the 'Management System for Directors, Supervisors, Senior Management, and Employees Holding and Trading Company Shares' ('Company Code'), whose terms are no less stringent than the Standard Code set out in Appendix C3 of the Listing Rules[96](index=96&type=chunk) - All directors and supervisors have confirmed their compliance with the Company Code for the period from the listing date to June 30, 2025[96](index=96&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=29&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) From the listing date to June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities - From the listing date to June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities[97](index=97&type=chunk) - As of June 30, 2025, the company held no treasury shares[97](index=97&type=chunk) [Dividends](index=29&type=section&id=Dividends%20%28Other%20Information%29) The Board of Directors recommended not to pay any interim dividend for the six months ended June 30, 2025 - For the six months ended June 30, 2025, the Board of Directors recommended not to pay any interim dividend[98](index=98&type=chunk) [Audit Committee](index=29&type=section&id=Audit%20Committee) The company has established an Audit Committee comprising three directors, with Mr. Gong Zhenliang as Chairman, which has reviewed the Group's unaudited interim financial statements and confirmed their compliance with accounting principles and disclosure requirements - The company has established an Audit Committee in compliance with the Listing Rules, comprising Mr. Gong Zhenliang, Ms. Xiao Min, and Mr. Zhang Li, with Mr. Gong Zhenliang as Chairman[99](index=99&type=chunk) - The Audit Committee has reviewed the Group's unaudited interim condensed consolidated financial statements for the six months ended June 30, 2025, and confirmed their compliance with all applicable accounting principles, standards, and requirements, and that adequate disclosures have been made[99](index=99&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=30&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This results announcement has been published on the HKEXnews website and the company's website, and the 2025 interim report containing all required information will be dispatched to shareholders and published on the websites in due course - This results announcement has been published on the HKEXnews website and the company's website[100](index=100&type=chunk) - The 2025 interim report, containing all information required by the Listing Rules, will be dispatched to shareholders and published on the company's and HKEXnews websites in due course[100](index=100&type=chunk) [Definitions](index=30&type=section&id=Definitions) This section provides definitions for key terms and abbreviations used in this interim results announcement to ensure clear understanding of the report content [Definitions](index=30&type=section&id=Definitions) This section provides definitions for key terms and abbreviations used in this interim results announcement to ensure clear understanding of the report content - This section lists key terms and their meanings used in this interim results announcement, including 'Associate', 'Audit Committee', 'Board', 'China Automotive Power Battery Industry Innovation Alliance', 'Corporate Governance Code', 'China', 'Company', 'Directors', 'Energy Storage System', 'Electric Vehicle', 'Group', 'GWh', 'H Shares', 'HKD', 'Hong Kong', 'HKEX', 'IFRS', 'Installed Capacity', 'LFP', 'LISA', 'Listing', 'Listing Date', 'Listing Rules', 'Lithium', 'Standard Code', 'MWh', 'Ternary', 'OEM', 'Prospectus', 'R&D', 'RMB', 'Reporting Period', 'Shares', 'Shareholders', 'Supervisors', 'Unlisted Shares', and '%'[101](index=101&type=chunk)[102](index=102&type=chunk)[105](index=105&type=chunk)

[Financial Summary](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The Group's unaudited consolidated results for the six months ended June 30, 2025, show a year-on-year decrease in revenue, but an increase in profit attributable to owners and basic earnings per share, with interim dividends remaining unchanged Financial Summary for H1 2025 | Metric | H1 2025 (HKD thousand) | H1 2024 (HKD thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 1,718,589 | 1,820,260 | -5.69% | | Profit attributable to owners of the Company | 344,455 | 288,077 | +19.57% | | Basic earnings per share (HK cents) | 32.11 | 26.85 | +19.59% | | Interim dividend (HK cents per share) | 5.18 | 5.18 | 0.00% | [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 the Group's condensed consolidated statement of profit or loss, statement of profit or loss and other comprehensive income, and statement of financial position for the six months ended June 30, 2025, illustrating financial performance and period-end financial position [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, Group revenue slightly decreased, but profit before tax and profit for the period significantly increased due to substantial growth in other income and a turnaround from loss to gain in other gains Key Data from Condensed Consolidated Statement of Profit or Loss (Six Months Ended June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 1,718,589 | 1,820,260 | -5.69% | | Gross profit | 547,900 | 588,491 | -6.90% | | Other income | 474,910 | 149,223 | +218.26% | | Other gains and losses, net | 26,669 | (30,201) | From loss to gain | | Profit before tax | 691,500 | 416,795 | +65.91% | | Profit for the period | 614,996 | 384,330 | +59.99% | | Profit attributable to owners of the Company | 344,455 | 288,077 | +19.57% | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&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, Group profit for the period grew significantly, with total comprehensive income turning from loss to profit, despite a negative impact from fair value changes of equity instruments at fair value through other comprehensive income, as currency translation differences shifted from negative to positive Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Six Months Ended June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Profit for the period | 614,996 | 384,330 | +59.99% | | Fair value changes of equity instruments at fair value through other comprehensive income | (434,692) | (473,760) | Loss narrowed | | Currency translation differences – Group | 127,667 | (72,289) | From loss to gain | | Total comprehensive income (expense) for the period | 454,494 | (134,905) | From loss to gain | | Total comprehensive income (expense) attributable to owners of the Company | 354,123 | 64,717 | +447.19% | [Condensed Consolidated Statement of Financial Position](index=4&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, Group total assets slightly increased, with significant growth in non-current assets like investments accounted for using the equity method and fixed deposits maturing over three months, while current assets such as cash and cash equivalents and fixed deposits maturing over three months decreased; total equity and total liabilities maintained steady growth Key Data from Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Change | | :--- | :--- | :--- | :--- | | Total assets | 22,449,648 | 22,192,849 | +1.16% | | Non-current assets | 12,875,509 | 11,701,178 | +10.04% | | Current assets | 9,574,139 | 10,491,671 | -8.75% | | Total equity | 17,687,865 | 17,455,293 | +1.33% | | Total liabilities | 4,761,783 | 4,737,556 | +0.51% | | Net current assets | 4,994,846 | 5,997,598 | -16.72% | - Among non-current assets, investments accounted for using the equity method increased to **HKD 6.34 billion** (December 31, 2024: HKD 6.06 billion), and fixed deposits maturing over three months significantly increased to **HKD 1.62 billion** (December 31, 2024: HKD 238.7 million)[6](index=6&type=chunk) - Among current assets, cash and cash equivalents decreased to **HKD 2.44 billion** (December 31, 2024: HKD 3.54 billion), and fixed deposits maturing over three months decreased to **HKD 1.79 billion** (December 31, 2024: HKD 2.38 billion)[6](index=6&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=6&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%E9%99%84%E8%A8%BB) This section details the basis of preparation, significant accounting policies, segment financial performance, other income and gains, tax expenses, earnings per share calculation, dividend policy, and specifics of various investments and receivables/payables for the condensed consolidated financial statements [Basis of Preparation](index=6&type=section&id=%E7%B7%A8%E5%88%B6%E5%9F%BA%E6%BA%96) The condensed consolidated financial statements are prepared in accordance with HKAS 34 "Interim Financial Reporting" and Appendix D2 of the Listing Rules, consistent with the statutory annual consolidated financial statements - The financial statements are prepared in accordance with **HKAS 34 "Interim Financial Reporting"** and **Appendix D2 of the Listing Rules**[8](index=8&type=chunk) - Comparative financial information for the year ended December 31, 2024, is derived from the statutory annual consolidated financial statements filed with the Registrar of Companies, with an **unqualified auditor's report**[8](index=8&type=chunk) [Significant Accounting Policies](index=6&type=section&id=%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The condensed consolidated financial statements are primarily prepared on a historical cost basis, with certain financial instruments measured at fair value, and accounting policies are consistent with the prior year, except for the application of revised HKFRSs - The financial statements are primarily prepared on a **historical cost basis**, with investment properties and certain financial instruments measured at **fair value**[9](index=9&type=chunk) - Except for the application of revised HKFRSs, accounting policies are **consistent with the prior year's financial statements**[9](index=9&type=chunk) [Application of Revised HKFRSs](index=6&type=section&id=%E6%87%89%E7%94%A8%E7%B6%93%E4%BF%AE%E8%A8%82%E9%A6%99%E6%B8%AF%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87%E6%9C%83%E8%A8%88%E6%BA%96%E5%89%87) Revised HKFRSs, including HKAS 21 (Amendment) "Lack of Exchangeability," were first applied in this interim period, with no significant impact on the Group's financial position or performance - The Group first applied revised HKFRSs, including **HKAS 21 (Amendment) "Lack of Exchangeability"**[10](index=10&type=chunk) - The application of new standards had **no significant impact** on the Group's financial position or performance[10](index=10&type=chunk) [Segment Information](index=7&type=section&id=%E5%88%86%E9%A1%9E%E8%B3%87%E6%96%99) The Group has six reportable operating segments: utilities, pharmaceuticals, hotels, electromechanical, port services, and elevators and escalators, each managed independently with performance assessed by after-tax profit; accounting for the pharmaceutical segment's research institute was adjusted due to equity changes - The Group has six operating segments: **utilities, pharmaceuticals, hotels, electromechanical, port services, and elevators and escalators**[11](index=11&type=chunk) - In the pharmaceutical segment, due to equity changes, Yaoyan Institute is no longer recognized as an investment accounted for using the equity method since December 25, 2024, but as an equity instrument at fair value through other comprehensive income, with **no profit or loss recognized** in this interim period[11](index=11&type=chunk) Operating Segment Revenue and Profit (Six Months Ended June 30) | Segment | 2025 Segment Revenue (HKD thousand) | 2024 Segment Revenue (HKD thousand) | 2025 Profit (Loss) attributable to owners of the Company (HKD thousand) | 2024 Profit (Loss) attributable to owners of the Company (HKD thousand) | | :--- | :--- | :--- | :--- | :--- | | Utilities | 712,786 | 768,660 | 78,360 | 82,369 | | Pharmaceuticals | 863,280 | 895,352 | 132,166 | 5,576 | | Hotels | 63,047 | 66,555 | 15,592 | 15,175 | | Electromechanical | 79,476 | 89,693 | (42,296) | (47,982) | | Port Services | ‒ | ‒ | 72,456 | 87,882 | | Elevators and Escalators | ‒ | ‒ | 121,918 | 155,067 | | **Total** | **1,718,589** | **1,820,260** | **378,196** | **298,087** | [Other Income](index=9&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, Group other income surged by 218.26%, primarily driven by a significant increase in dividend income from equity instruments at fair value through other comprehensive income Composition of Other Income (Six Months Ended June 30) | Item | 2025 (HKD thousand) | 2024 (HKD thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Interest income | 124,656 | 131,845 | -5.45% | | Government grants | 3,645 | 2,268 | +60.71% | | Dividend income from equity instruments at fair value through other comprehensive income | 334,488 | 2,433 | +13655.77% | | **Total** | **474,910** | **149,223** | **+218.26%** | - Operating profit of the pharmaceutical segment includes dividend income from Tasly Group of approximately **HKD 329.4 million** (six months ended June 30, 2024: nil)[16](index=16&type=chunk) [Other Gains and Losses, Net](index=10&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E5%8F%8A%E虧%E6%90%8D%EF%BC%8C%E6%B7%A8%E9%A1%8D) For the six months ended June 30, 2025, Group other gains and losses, net, turned from a loss to a gain, primarily due to reversal of impairment losses on trade receivables, fair value gains on financial assets held for trading, and exchange gains Other Gains and Losses, Net (Six Months Ended June 30) | Item | 2025 (HKD thousand) | 2024 (HKD thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Reversal of (provision for) impairment losses – trade receivables | 21,591 | (21,963) | From provision to reversal | | Net fair value gains (losses) on financial assets held for trading – listed | 3,320 | 1,162 | +185.71% | | Net fair value gains (losses) on financial assets held for trading – unlisted | 5,113 | (6,118) | From loss to gain | | Net exchange gains (losses) | 4,552 | (1,111) | From loss to gain | | **Total** | **26,669** | **(30,201)** | **From loss to gain** | [Tax Expense](index=10&type=section&id=%E7%A8%85%E9%A0%85%E6%94%AF%E5%87%BA) For the six months ended June 30, 2025, Group tax expense significantly increased, mainly due to higher PRC corporate income tax and under-provision in prior years; some PRC subsidiaries qualify for a preferential 15% corporate income tax rate as high-tech enterprises Tax Expense (Six Months Ended June 30) | Item | 2025 (HKD thousand) | 2024 (HKD thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | PRC corporate income tax | 52,301 | 21,529 | +142.94% | | Under-provision in prior years | 24,413 | ‒ | New | | Deferred tax | (210) | 10,936 | From expense to credit | | **Total** | **76,504** | **32,465** | **+135.66%** | - Some PRC subsidiaries qualify as high-tech enterprises and are subject to a **preferential corporate income tax rate of 15%**[18](index=18&type=chunk) [Profit for the Period is Arrived at After Charging](index=11&type=section&id=%E6%9C%9F%E9%96%93%E6%BA%A2%E5%88%A9%E4%B9%83%E6%89%A3%E9%99%A4%E4%B8%8B%E5%88%97%E9%A0%85%E7%9B%AE%E5%BE%8C%E9%81%94%E8%87%B4) Profit for the period is derived after deducting employee benefit expenses, cost of inventories, depreciation and amortization, short-term lease expenses, and research and development costs; employee benefit expenses and cost of inventories increased, while depreciation and amortization decreased Items Deducted in Arriving at Profit for the Period (Six Months Ended June 30) | Item | 2025 (HKD thousand) | 2024 (HKD thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Employee benefit expenses | 304,443 | 298,463 | +2.00% | | Cost of inventories recognized as expense | 955,188 | 900,853 | +6.03% | | Depreciation of property, plant and equipment | 94,521 | 102,026 | -7.36% | | Depreciation of land use rights | 4,220 | 3,071 | +37.40% | | Amortization of intangible assets | 2,506 | 4,339 | -42.24% | | Research and development costs included in other operating expenses | 79,370 | 74,400 | +6.68% | [Earnings Per Share](index=11&type=section&id=%E6%AF%8F%E8%82%A1%E7%86%B1%E5%88%A9) For the six months ended June 30, 2025, basic and diluted earnings per share attributable to owners were 32.11 HK cents, up from 26.85 HK cents in the prior year, primarily due to increased profit attributable to owners with no change in ordinary shares outstanding Earnings Per Share (Six Months Ended June 30) | Metric | 2025 (HK cents) | 2024 (HK cents) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Basic earnings per share | 32.11 | 26.85 | +19.59% | | Diluted earnings per share | 32.11 | 26.85 | +19.59% | - The number of ordinary shares used for calculating basic and diluted earnings per share was **1,072,770 thousand shares**, with **no dilutive effect** in either interim period[20](index=20&type=chunk) [Dividends](index=12&type=section&id=%E8%82%A1%E6%81%AF) The Board declared an interim dividend of 5.18 HK cents per ordinary share for the six months ended June 30, 2025, consistent with the prior year, totaling approximately HKD 55,569,500 Interim Dividend (Six Months Ended June 30) | Metric | 2025 (HK cents per share) | 2024 (HK cents per share) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Interim dividend | 5.18 | 5.18 | 0.00% | | Total amount (HKD thousand) | 55,569.5 | 55,569.5 | 0.00% | [Investments Accounted for Using the Equity Method](index=12&type=section&id=%E6%8E%A1%E7%94%A8%E6%AC%8A%E7%9B%8A%E6%B3%95%E5%85%A5%E8%B3%AC%E7%9A%84%E6%8A%95%E8%B3%87) As of June 30, 2025, the Group's total investments accounted for using the equity method increased to HKD 6,339,761 thousand, primarily comprising interests in Tianjin Port Development, Otis China, and TEDA Electric Power Investments Accounted for Using the Equity Method (As of June 30) | Investment Item | 2025 (HKD thousand) | 2024 (HKD thousand) | Change | | :--- | :--- | :--- | :--- | | Tianjin Port Development | 3,776,179 | 3,716,230 | +1.61% | | Otis China | 1,092,146 | 928,920 | +17.57% | | TEDA Electric Power | 1,471,436 | 1,419,839 | +3.63% | | **Total** | **6,339,761** | **6,064,989** | **+4.53%** | - The interest in Tianjin Port Development includes goodwill of **HKD 820.7 million** (net of impairment losses), which remained **unchanged** from December 31, 2024[23](index=23&type=chunk) [Equity Instruments at Fair Value Through Other Comprehensive Income](index=13&type=section&id=%E6%8C%89%E5%85%AC%E5%85%81%E5%83%B9%E5%80%BC%E9%80%8F%E9%81%8E%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E5%88%97%E8%B3%AC%E4%B9%8B%E6%AC%8A%E7%9B%8A%E5%B7%A5%E5%85%B7) As of June 30, 2025, the Group's total equity instruments at fair value through other comprehensive income amounted to HKD 1,847,310 thousand, a decrease from December 31, 2024, primarily due to a decline in the fair value of unlisted equity securities, including interests in Tasly Group and Yaoyan Institute Equity Instruments at Fair Value Through Other Comprehensive Income (As of June 30) | Item | 2025 (HKD thousand) | 2024 (HKD thousand) | Change | | :--- | :--- | :--- | :--- | | Listed equity securities | 77,236 | 84,228 | -8.29% | | Unlisted equity securities | 1,770,074 | 2,181,392 | -18.86% | | **Total** | **1,847,310** | **2,265,620** | **-18.46%** | - Unlisted equity securities primarily include a **12.15% interest in Tasly Group** and a **31.05% interest in Yaoyan Institute**[24](index=24&type=chunk) - The equity interest in Binhai Investment had a market value of **HKD 59.8 million**, with an unrealized fair value loss of **HKD 7.0 million** recognized in other comprehensive income[24](index=24&type=chunk) [Trade and Other Receivables, Deposits and Prepayments](index=14&type=section&id=%E6%87%89%E6%94%B6%E8%B2%A8%E6%AC%BE%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E3%80%81%E6%8C%89%E9%87%91%E5%8F%8A%E9%A0%90%E4%BB%98%E6%AC%BE) As of June 30, 2025, the Group's total trade and other receivables, deposits, and prepayments increased to HKD 2,284,586 thousand, primarily due to higher trade receivables and other receivables, with the latter mainly from dividend income due from Tasly Group Trade and Other Receivables (As of June 30) | Item | 2025 (HKD thousand) | 2024 (HKD thousand) | Change | | :--- | :--- | :--- | :--- | | Total trade receivables | 1,546,595 | 1,401,862 | +10.32% | | Other receivables, deposits and prepayments | 737,991 | 426,410 | +72.90% | | **Total** | **2,284,586** | **1,828,272** | **+25.07%** | - The increase in other receivables, deposits, and prepayments primarily stemmed from **dividend income due from Tasly Group**[25](index=25&type=chunk) Trade Receivables Ageing Analysis (As of June 30) | Ageing | 2025 (HKD thousand) | 2024 (HKD thousand) | | :--- | :--- | :--- | | Within 30 days | 319,261 | 196,441 | | 31 to 90 days | 175,127 | 293,212 | | 91 to 180 days | 293,002 | 236,725 | | 181 to 365 days | 315,566 | 393,547 | | Over 1 year | 443,639 | 281,937 | [Structured Deposits](index=14&type=section&id=%E7%B5%90%E6%A7%8B%E6%80%A7%E5%AD%98%E6%AC%BE) As of June 30, 2025, the Group's structured deposits increased to HKD 775,603 thousand, with maturities up to six months and expected annual interest rates ranging from 0.8% to 3.4% Structured Deposits (As of June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Change | | :--- | :--- | :--- | :--- | | Structured deposits | 775,603 | 347,394 | +123.26% | - Deposit terms are up to **six months**, with expected annual interest rates ranging from **0.8% to 3.4%** (December 31, 2024: 1.1% to 2.6%)[26](index=26&type=chunk) [Trust Deposits](index=14&type=section&id=%E4%BF%A1%E8%A8%97%E5%AD%98%E6%AC%BE) As of June 30, 2025, the Group's trust deposits slightly increased to HKD 1,064,449 thousand, with maturities of six to twelve months and an expected annualized return of 4.0% Trust Deposits (As of June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Change | | :--- | :--- | :--- | :--- | | Trust deposits | 1,064,449 | 1,036,909 | +2.66% | - Deposit terms are **six to twelve months**, with an expected annualized return of **4.0%**[27](index=27&type=chunk) [Trade Payables](index=15&type=section&id=%E6%87%89%E4%BB%98%E8%B2%A8%E6%AC%BE) As of June 30, 2025, the Group's total trade payables increased to HKD 480,988 thousand, with significant increases in payables aged 31 to 90 days and 91 to 180 days Trade Payables Ageing Analysis (As of June 30) | Ageing | 2025 (HKD thousand) | 2024 (HKD thousand) | Change | | :--- | :--- | :--- | :--- | | Within 30 days | 108,329 | 144,080 | -24.81% | | 31 to 90 days | 94,362 | 39,073 | +141.50% | | 91 to 180 days | 62,600 | 35,765 | +75.04% | | Over 180 days | 215,697 | 225,719 | -4.30% | | **Total** | **480,988** | **444,637** | **+8.17%** | [Management Discussion and Analysis](index=15&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 provides an operational review of the Group's business segments, outlook on the future economic environment, liquidity, capital sources, key financial risk management strategies, and details on staff remuneration, asset pledges, litigation, dividend distribution, share registration, securities trading, and corporate governance [Business Review](index=15&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group's diverse businesses include utilities, pharmaceuticals, hotels, electromechanical, and strategic investments, with varied performance: water utilities grew, while heat and power revenues slightly declined; pharmaceutical profit surged due to special dividends; hotel revenue decreased but profit slightly rose; electromechanical revenue fell but losses narrowed; and strategic investments in port services and elevators/escalators contributed less profit [Utilities](index=15&type=section&id=%E5%85%AC%E7%94%A8%E8%A8%AD%E6%96%BD) The utilities business primarily operates water, heat, and power supply in Tianjin Development Area; water business revenue and profit grew, heat business revenue and profit declined, and power business revenue slightly decreased but contributed more profit - The utilities business primarily provides **water, heat, and power** to commercial and residential users in the Tianjin Economic-Technological Development Area, China[30](index=30&type=chunk) [Water Supply](index=15&type=section&id=%E8%87%AA%E4%BE%86%E6%B0%B4) Water supply company revenue was approximately HKD 144 million, up 1.2% year-on-year, with profit of approximately HKD 22 million, increasing 19.6%, primarily due to reduced operating expenses and a 3.6% increase in total sales volume Water Supply Business Performance (Six Months Ended June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 144,000 | 142,305 | +1.2% | | Profit | 22,000 | 18,400 | +19.6% | | Total sales volume (tonnes) | 22,563,000 | 21,779,000 | +3.6% | - Profit growth was primarily attributable to successful implementation of **operating expense reduction measures**, leading to improved operating margins[31](index=31&type=chunk) [Heat Energy](index=16&type=section&id=%E7%86%B1%E8%83%BD) Heat and power company revenue was approximately HKD 568.8 million, down 9.2% year-on-year, with profit of approximately HKD 31.1 million, a decrease from HKD 40.4 million in the prior year, mainly due to a 10.2% drop in steam sales volume, partially offset by reduced operating expenses Heat Energy Business Performance (Six Months Ended June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 568,800 | 626,400 | -9.2% | | Profit | 31,100 | 40,400 | -22.9% | | Total steam sales volume (tonnes) | 1,714,000 | 1,908,000 | -10.2% | - The decrease in revenue and profit was mainly due to a **decline in steam sales volume**, partially offset by reduced operating expenses[32](index=32&type=chunk) [Electric Power](index=16&type=section&id=%E9%9B%BB%E5%8A%9B) TEDA Electric Power revenue was approximately HKD 1,140.9 million, a 0.2% year-on-year decrease, contributing approximately HKD 29.5 million in profit to the Group, an increase of HKD 1.2 million from the prior year Electric Power Business Performance (Six Months Ended June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 1,140,900 | 1,143,281 | -0.2% | | Profit contribution | 29,500 | 28,300 | +4.24% | - TEDA Electric Power primarily operates **power supply services** in the Tianjin Development Area, also offering services related to new and renewable energy technology applications[33](index=33&type=chunk) [Pharmaceuticals](index=16&type=section&id=%E9%86%AB%E8%97%A5) Pharmaceutical segment revenue was approximately HKD 863.3 million, a 3.6% year-on-year decrease; however, profit surged to HKD 377.9 million due to a special dividend of HKD 303.1 million from Tasly Group, or HKD 74.8 million excluding the dividend, primarily driven by increased interest income Pharmaceutical Business Performance (Six Months Ended June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 863,300 | 895,400 | -3.6% | | Profit | 377,900 | 62,300 | +506.58% | | Revenue from production and sales of chemical drugs, proprietary Chinese medicines, and other healthcare products | 787,400 | 811,750 | -3.0% | | Revenue from sales of packaging materials | 75,900 | 84,000 | -9.64% | - The significant increase in pharmaceutical segment profit was primarily due to a **special dividend of HKD 303.1 million** declared by Tasly Group[35](index=35&type=chunk) - Excluding the special dividend, pharmaceutical segment profit was approximately **HKD 74.8 million**, an increase of **HKD 12.5 million** from the prior year, mainly due to increased interest income and the Group no longer sharing in Yaoyan Institute's results[35](index=35&type=chunk) - Lisheng Pharmaceutical intends to subscribe **RMB 173.75 million** to establish a limited partnership fund, representing **34.75%** of the proposed total subscribed capital[36](index=36&type=chunk) [Hotels](index=17&type=section&id=%E9%85%92%E5%BA%97) Courtyard by Marriott revenue was approximately HKD 63 million, down 5.4% year-on-year, but profit slightly increased to HKD 15.6 million, with average occupancy rising 2 percentage points to 89.7% despite a 6.4% drop in average room rate Hotel Business Performance (Six Months Ended June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 63,000 | 66,600 | -5.4% | | Profit | 15,600 | 15,200 | +2.63% | | Average occupancy rate | 89.7% | 87.7% | +2.0 ppts | | Average room rate | -6.4% | N/A | -6.4% | [Electromechanical](index=17&type=section&id=%E6%A9%9F%E9%9B%BB) Electromechanical segment revenue was approximately HKD 79.5 million, down 11.4% year-on-year; losses narrowed to approximately HKD 51.1 million, an 11.9% improvement from the prior year, but still impacted by slower hydropower industry development and lower contract gross margins Electromechanical Business Performance (Six Months Ended June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 79,500 | 89,693 | -11.4% | | Loss | (51,100) | (58,000) | Loss narrowed 11.9% | - Operating loss was primarily due to the **slowing development of the hydropower industry** and **lower gross margins** on completed contract works[38](index=38&type=chunk) [Strategic and Other Investments](index=18&type=section&id=%E7%AD%96%E7%95%A5%E6%80%A7%E5%8F%8A%E5%85%B6%E4%BB%96%E6%8A%95%E8%B3%87) The Group's strategic and other investments include port services, elevators and escalators, Binhai Investment, and Tasly Group; profit contributions from port services and elevators/escalators decreased, Binhai Investment's equity market value declined with unrealized fair value losses, and Tasly Group's investment fair value decreased but provided substantial dividend income [Port Services](index=18&type=section&id=%E6%B8%AF%E5%8F%A3%E6%9C%8D%E5%8B%99) Tianjin Port Development revenue grew 2.9% to approximately HKD 6,942.2 million, but profit attributable to its owners decreased by 17.6%; the Group's profit contribution from Tianjin Port Development was approximately HKD 72.5 million, a 17.5% year-on-year decrease Port Services Business Performance (Six Months Ended June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Tianjin Port Development revenue | 6,942,200 | 6,746,550 | +2.9% | | Profit attributable to owners of Tianjin Port Development | 345,000 | 418,600 | -17.6% | | Group's profit contribution | 72,500 | 87,882 | -17.5% | [Elevators and Escalators](index=18&type=section&id=%E5%8D%87%E9%99%8D%E6%A9%9F%E5%8F%8A%E6%89%B6%E6%89%8B%E9%9B%BB%E6%A2%AF) Otis China revenue was approximately HKD 6,740.8 million, a 23.3% year-on-year decrease; the Group's profit contribution from Otis China was approximately HKD 121.9 million, down 21.4% year-on-year Elevators and Escalators Business Performance (Six Months Ended June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Otis China revenue | 6,740,800 | 8,786,000 | -23.3% | | Group's profit contribution | 121,900 | 155,067 | -21.4% | [Investment in Binhai Investment Company Limited](index=18&type=section&id=%E6%96%BC%E6%BF%B1%E6%B5%B7%E6%8A%95%E8%B3%87%E6%9C%89%E9%99%90%E5%85%AC%E5%8F%B8%E4%B9%8B%E6%8A%95%E8%B3%87) The Group holds a 4.2% equity interest in Binhai Investment, with a market value of approximately HKD 59.8 million as of June 30, 2025, and recognized an unrealized fair value loss of approximately HKD 7 million Binhai Investment Company Limited Investment Status (As of June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Change | | :--- | :--- | :--- | :--- | | Equity market value | 59,800 | 66,800 | -10.48% | | Unrealized fair value loss | 7,000 | N/A | New | - The Group holds a **4.2% equity interest in Binhai Investment**, which is listed on the Main Board of the Stock Exchange[42](index=42&type=chunk) [Investment in Tasly Pharmaceutical Group Co., Ltd.](index=18&type=section&id=%E6%96%BC%E5%A4%A9%E5%A3%AB%E5%8A%9B%E7%94%9F%E7%89%A9%E9%86%AB%E8%97%A5%E7%94%A2%E6%A5%AD%E9%9B%86%E5%9C%98%E6%9C%89%E9%99%90%E5%85%AC%E5%8F%B8%E4%B9%8B%E6%8A%95%E8%B3%87) The Group holds a 12.15% non-core passive equity interest in Tasly Group, with a fair value of approximately HKD 852.3 million as of June 30, 2025, a decrease from December 31, 2024, recognizing approximately HKD 420.4 million in unrealized fair value losses and exchange differences, while receiving approximately HKD 329.4 million in dividend income during the review period Tasly Group Investment Status (As of June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Change | | :--- | :--- | :--- | :--- | | Fair value | 852,300 | 1,272,700 | -33.03% | | Unrealized fair value loss and exchange differences | 420,400 | N/A | New | | Dividend income (H1) | 329,400 | 4,000 (Full Year) | Substantially increased | - The Group holds a **12.15% equity interest in Tasly Group**, which is a **non-core passive investment** and will not be sold in the foreseeable future[43](index=43&type=chunk)[44](index=44&type=chunk) [Outlook](index=19&type=section&id=%E5%B1%95%E6%9C%9B) For the second half of 2025, the global economy faces high uncertainty with ongoing geopolitical conflicts and international trade frictions; China's economy is expected to achieve its targets through policy synergy, and the Company will actively promote stable business development, deepen integration, focus on shareholder value, adhere to prudent financial management, and enhance core competitiveness - The global economy is expected to face **high uncertainty** in the second half of 2025, with ongoing geopolitical conflicts and international trade frictions[45](index=45&type=chunk) - China's economy is projected to achieve its targets through **policy synergy**[45](index=45&type=chunk) - The Company will actively promote **stable business development**, deepen integration, focus on **shareholder value**, strengthen its foundation, and enhance core competitiveness[45](index=45&type=chunk) [Liquidity, Capital Resources and Key Risks](index=19&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B3%87%E6%9C%AC%E4%BE%86%E6%BA%90%E5%8F%8A%E4%B8%BB%E8%A6%81%E9%A2%A8%E9%9A%AA) As of June 30, 2025, the Group's total cash on hand and bank loans both decreased, with a slight improvement in the gearing ratio; funding primarily comes from operating cash flow and loan financing, with close monitoring of interest rate, exchange rate, and credit risks, and no derivative contracts entered Liquidity Status (As of June 30) | Metric | 2025 (HKD thousand) | 2024 (HKD thousand) | Change | | :--- | :--- | :--- | :--- | | Total cash on hand | 5,909,600 | 6,272,100 | -5.89% | | Total bank loans | 1,972,800 | 1,989,800 | -0.85% | | Gearing ratio | 15.3% | 15.8% | -0.5 ppts | - **HKD 1.94 billion** in bank loans will mature within one year[46](index=46&type=chunk) - Of the outstanding bank loans, **HKD 1.92 billion** bears floating interest rates, with **HKD 1.72 billion** linked to environmental, social, and governance (ESG) performance indicators[47](index=47&type=chunk) - The Group has **not entered into any derivative contracts or hedging transactions** and closely monitors foreign currency exchange rate fluctuations[48](index=48&type=chunk) [Employees and Remuneration Policy](index=20&type=section&id=%E5%93%A1%E5%B7%A5%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) The Group employs approximately 2,735 staff, contributing to pension schemes for both PRC and Hong Kong employees, with some PRC subsidiary employees participating in restricted share incentive plans - The Group employs approximately **2,735 staff**, including management, technical, and production personnel[49](index=49&type=chunk) - Contributions are made to government-established pension schemes for PRC employees and to the **Mandatory Provident Fund Scheme** for Hong Kong employees[49](index=49&type=chunk) - Some employees of PRC subsidiaries participate in relevant **restricted share incentive plans**[49](index=49&type=chunk) [Pledge of Assets](index=20&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%BC%E8%A8%98) As of June 30, 2025, the Group pledged restricted bank deposits of HKD 59.4 million and property, plant and equipment with a carrying amount of HKD 55.6 million to financial institutions as collateral for general banking facilities Asset Pledge Status (As of June 30) | Pledged Assets | Amount (HKD thousand) | | :--- | :--- | | Restricted bank deposits | 59,400 | | Property, plant and equipment | 55,600 | - Pledged assets serve as **collateral for general banking facilities**[50](index=50&type=chunk) [Litigation](index=20&type=section&id=%E8%A8%B4%E8%A8%9F) The Tianjin Higher People's Court dismissed the appeal by Zhongyang Pharmaceutical and its agent, upholding the first-instance judgment; Group management believes this litigation will not have a material adverse impact on the Group's financial position - The Tianjin Higher People's Court dismissed the appeal by Zhongyang Pharmaceutical and its agent, with the **first-instance judgment upheld and final**[51](index=51&type=chunk) - Management believes the litigation will **not have a material adverse impact** on the Group's financial position[51](index=51&type=chunk) [Interim Dividend](index=20&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board declared an interim dividend of 5.18 HK cents per share for the six months ended June 30, 2025, payable on October 31, 2025 - The Board declared an interim dividend of **5.18 HK cents per share**, consistent with the prior year[52](index=52&type=chunk) - The interim dividend will be **paid on October 31, 2025**[52](index=52&type=chunk) [Closure of Register of Members](index=20&type=section&id=%E6%9A%AB%E5%81%9C%E8%BE%A6%E7%90%86%E8%82%A1%E4%BB%BD%E9%81%8E%E6%88%B6%E7%99%BB%E8%A8%98%E6%89%8B%E7%BA%8C) To determine eligibility for the interim dividend, the Company's register of members will be closed from September 24 to September 26, 2025 - The register of members will be closed from **September 24 to September 26, 2025**, to determine eligibility for the interim dividend[53](index=53&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=20&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 - Neither the Company nor its subsidiaries engaged in any **purchase, sale, or redemption of listed securities** during the review period[54](index=54&type=chunk) [Compliance with Corporate Governance Code](index=21&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) For the six months ended June 30, 2025, the Company complied with the Corporate Governance Code provisions in Appendix C1 Part 2 of the Listing Rules and will continue to monitor and review its corporate governance practices - The Company consistently complied with the **Corporate Governance Code** in Appendix C1 Part 2 of the Listing Rules during the review period[55](index=55&type=chunk) - The Board will continue to **monitor and review corporate governance practices and procedures**[56](index=56&type=chunk) [Compliance with the Standard Securities Dealing Code for Directors of Listed Issuers](index=21&type=section&id=%E9%81%B5%E5%AE%88%E4%B8%8A%E5%B8%82%E7%99%BC%E8%A1%8C%E4%BA%BA%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) All Directors confirmed compliance with the Standard Securities Dealing Code in Appendix C3 of the Listing Rules during the review period, and the Company has established written guidelines for senior management and specific individuals regarding securities transactions, no less exacting than the Standard Code - All Directors confirmed compliance with the **Standard Securities Dealing Code for Directors of Listed Issuers** during the review period[57](index=57&type=chunk) - The Company has established **strict written guidelines for securities transactions** for senior management and specific individuals who may have access to price-sensitive information[57](index=57&type=chunk) [Review by Audit Committee](index=21&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83%E4%B9%8B%E5%AF%A9%E9%96%B1) The Audit Committee engaged independent auditors to review the unaudited condensed consolidated financial statements and discussed accounting principles, risk management (including ESG risks), internal control system effectiveness, auditing, and financial reporting with management - The Audit Committee engaged **independent auditors to review the unaudited condensed consolidated financial statements**[58](index=58&type=chunk) - The Audit Committee reviewed **accounting principles, risk management (including ESG risks), the effectiveness of internal control systems, auditing, and financial reporting matters**[58](index=58&type=chunk)

[Executive Summary](index=1&type=section&id=Executive%20Summary) The Group reported a 28.7% revenue increase and a 3.8% rise in profit attributable to owners, with significant growth in clean energy business, but no interim dividend is recommended | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,019.6 | 792.4 | 28.7% | | Profit Attributable to Owners of the Company | 52.2 | 50.3 | 3.8% | | EBITDA | 147.3 | 153.3 | (3.9%) | | Clean Energy and New Energy Segment Revenue | 8.4 | 1.2 | 600.0% | | Clean Energy and New Energy Segment Profit | 5.1 | 1.1 | 363.6% | | Basic and Diluted Earnings Per Share | 0.23 cents | 0.22 cents | 4.5% | - The Board does not recommend declaring an **interim dividend** for the first half of 2025[3](index=3&type=chunk) [Unaudited Interim Results](index=2&type=section&id=Unaudited%20Interim%20Results) This section presents the condensed consolidated financial statements, highlighting the Group's financial performance and position for the interim period [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group's revenue increased by 28.7% to RMB 1,019.6 million, with profit attributable to owners rising 3.8%, despite an 18.8% decline in gross profit | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 1,019,577 | 792,399 | | Cost of Sales | (1,007,241) | (777,215) | | Gross Profit | 12,336 | 15,184 | | Other Income and Gains, Net | 9,484 | 4,247 | | Administrative Expenses | (52,337) | (66,539) | | Reversal of Impairment Losses on Financial Assets, Net | 8,038 | 1,581 | | Finance Costs | (45,547) | (58,313) | | Share of Profit of Associates | 131,898 | 154,056 | | Profit Before Tax | 62,938 | 48,905 | | Profit for the Period | 47,774 | 37,755 | | Profit Attributable to Owners of the Company | 52,206 | 50,266 | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total non-current assets increased to RMB 3,654.5 million, driven by investments in associates, while net current liabilities stood at RMB 2,038.6 million, indicating liquidity pressure | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Non-current Assets | 3,654,512 | 3,554,066 | | Total Current Assets | 839,636 | 896,562 | | Total Current Liabilities | 2,878,261 | 2,871,531 | | Net Current Liabilities | (2,038,625) | (1,974,969) | | Net Assets | 1,521,823 | 1,480,155 | | Total Equity | 1,521,823 | 1,480,155 | [Notes to the Unaudited Condensed Consolidated Interim Financial Information](index=6&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Interim%20Financial%20Information) This section provides detailed notes on the Group's interim financial information, covering accounting policies, segment data, and key financial statement items [1. General Information](index=6&type=section&id=1.%20General%20Information) The company, registered in Bermuda and listed on HKEX, primarily engages in natural gas distribution, trading, and clean energy, with Beijing Enterprises Group Company Limited as its ultimate controlling shareholder - The Company is incorporated in Bermuda and its shares are listed on the Stock Exchange of Hong Kong[10](index=10&type=chunk) - The Group primarily engages in natural gas transmission and distribution, gas equipment sales, pipeline connection services, CNG/LNG refilling station operations, natural gas trading and distribution, and integrated clean energy and new energy businesses[11](index=11&type=chunk)[13](index=13&type=chunk) - The Company's ultimate controlling company is Beijing Enterprises Group Company Limited, wholly owned by the Beijing State-owned Assets Supervision and Administration Commission[11](index=11&type=chunk) [2. Basis of Presentation and Preparation](index=6&type=section&id=2.%20Basis%20of%20Presentation%20and%20Preparation) The Group faces net current liabilities of approximately RMB 2,039 million, but the Board believes in its going concern based on inter-company loans, bank offers, associate dividends, and ongoing support from the controlling shareholder [2.1 Basis of Presentation](index=6&type=section&id=2.1%20Basis%20of%20Presentation) - As of June 30, 2025, the Group's **net current liabilities** were approximately **RMB 2,039 million**[12](index=12&type=chunk) - The Board believes the Group will have sufficient funds for **going concern**, based on a **HKD 1,000 million** revolving loan from a fellow subsidiary, a **RMB 1,200 million** 3-year syndicated loan offer from major banks, expected dividends from associates, and ongoing financial support from the controlling company[12](index=12&type=chunk)[14](index=14&type=chunk) [2.2 Basis of Preparation](index=7&type=section&id=2.2%20Basis%20of%20Preparation) - The unaudited interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 and the applicable disclosure requirements of Appendix D2 to the Listing Rules[15](index=15&type=chunk) - This interim condensed consolidated financial information is unaudited but has been reviewed by the Company's Audit Committee[16](index=16&type=chunk) [Change in Presentation Currency](index=7&type=section&id=Change%20in%20Presentation%20Currency) - Effective January 1, 2024, the Company's consolidated financial statements' presentation currency changed from HKD to RMB, with comparative figures retrospectively accounted for and restated[17](index=17&type=chunk) - The Board considers RMB more appropriate as the presentation currency, as most of the Group's transactions are denominated and settled in RMB, providing clearer financial performance insights for shareholders and potential investors[17](index=17&type=chunk) [3. Changes in Accounting Policies and Disclosures](index=7&type=section&id=3.%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) The first-time adoption of revised IFRS accounting standards (IAS 21 amendments) had no material impact on the Group's interim condensed consolidated financial information, as its transaction and functional currencies are convertible - The first-time adoption of revised IFRS accounting standards (IAS 21 amendments) had no impact on the Group's interim condensed consolidated financial information[18](index=18&type=chunk) - The amendment addresses assessing currency exchange and estimating spot exchange rates when convertibility is lacking, but the Group's transaction and functional currencies are convertible[18](index=18&type=chunk) [4. Seasonal Factors in Operations](index=7&type=section&id=4.%20Seasonal%20Factors%20in%20Operations) The Group's natural gas business experiences seasonal fluctuations, with higher demand in the second half due to winter heating, meaning first-half results may not reflect full-year performance - The Group's natural gas business experiences **seasonal fluctuations**, with higher demand typically in the second half due to winter heating[19](index=19&type=chunk) - The interim results for the first half may not be indicative of the operating performance for the entire financial year[20](index=20&type=chunk) [5. Operating Segment Information](index=8&type=section&id=5.%20Operating%20Segment%20Information) The Group operates in city gas, natural gas trading and distribution, and integrated clean and new energy segments, with significant revenue growth in natural gas trading and distribution in H1 2025 - The Group's operating segments include city gas operations, natural gas trading and distribution, and the development and operation of integrated clean energy and new energy[21](index=21&type=chunk)[24](index=24&type=chunk) | Segment | H1 2025 Revenue (RMB thousand) | H1 2024 Revenue (RMB thousand) | H1 2025 Profit/(Loss) (RMB thousand) | H1 2024 Profit (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | City Gas Operations | 440,969 | 480,643 | 120,113 | 121,110 | | Natural Gas Trading and Distribution | 570,184 | 310,536 | (3,378) | 1,807 | | Clean Energy and New Energy | 8,424 | 1,220 | 5,132 | 1,071 | | **Total** | **1,019,577** | **792,399** | **121,867** | **123,988** | [6. Revenue](index=9&type=section&id=6.%20Revenue) Total revenue for H1 2025 reached RMB 1,019.6 million, a 28.7% year-on-year increase, primarily driven by an 83.6% surge in natural gas trading and distribution revenue | Revenue Source | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | City Gas Operations | 440,969 | 480,643 | | Natural Gas Trading and Distribution | 570,184 | 310,536 | | Development and Operation of Integrated Clean Energy and New Energy | 8,424 | 1,220 | | **Total** | **1,019,577** | **792,399** | - Total revenue for H1 2025 increased by **28.7%** year-on-year, primarily due to increased revenue from the natural gas trading and distribution business[27](index=27&type=chunk) [7. Other Income and Gains, Net](index=10&type=section&id=7.%20Other%20Income%20and%20Gains,%20Net) Net other income and gains for H1 2025 significantly increased to RMB 9.5 million from RMB 4.2 million, primarily due to growth in other income | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank Interest Income | 1,368 | 1,330 | | Government Grants and Subsidies | 70 | 165 | | Net Exchange Differences | (195) | (1,536) | | Other | 8,241 | 4,288 | | **Total** | **9,484** | **4,247** | - Net other income and gains increased by **123.3%** year-on-year, primarily driven by significant growth in the 'other' category[29](index=29&type=chunk) [8. Finance Costs](index=10&type=section&id=8.%20Finance%20Costs) Finance costs decreased by 22.0% to RMB 45.5 million in H1 2025, mainly due to reduced interest expenses on bank borrowings and loans from the controlling company | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest Expense on Bank Borrowings | 24,079 | 30,836 | | Interest Expense on Other Borrowings | 303 | 2,055 | | Interest Expense on Convertible Bonds and Corporate Bonds | 13,854 | 14,986 | | Interest Expense on Loans from Controlling Company | 7,275 | 10,039 | | Interest Expense on Lease Liabilities | 36 | 397 | | **Total** | **45,547** | **58,313** | - Finance costs decreased by **22.0%** year-on-year, mainly due to reduced interest expenses on bank borrowings and loans from the controlling company[30](index=30&type=chunk) [9. Profit Before Tax](index=11&type=section&id=9.%20Profit%20Before%20Tax) Profit before tax was achieved after deducting cost of inventories sold, depreciation, amortization, and employee benefits, with a significant increase in net reversal of impairment losses on financial assets to RMB 8.0 million | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of Inventories Sold | 988,085 | 746,078 | | Depreciation of Property, Plant and Equipment | 25,009 | 31,823 | | Amortization of Operating Rights | 8,765 | 9,024 | | Total Employee Benefit Expenses | 29,619 | 38,354 | | Reversal of Impairment Losses on Financial Assets, Net | (8,038) | (1,581) | | Reversal of Impairment Losses on Property, Plant and Equipment | (446) | (5,626) | - Net reversal of impairment losses on financial assets increased from **RMB (1,581) thousand** in H1 2024 to **RMB (8,038) thousand** in H1 2025, indicating an increase in impairment reversals[31](index=31&type=chunk) [10. Income Tax](index=11&type=section&id=10.%20Income%20Tax) Income tax expense for H1 2025 was RMB 15.2 million, primarily comprising current tax for PRC subsidiaries and withholding tax on dividends from PRC subsidiaries | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Current – Mainland China | 7,610 | 5,392 | | Withholding Tax on Dividends Distributed by PRC Subsidiaries | 10,000 | 8,000 | | Deferred | (2,446) | (2,242) | | **Total Tax Expense for the Period** | **15,164** | **11,150** | - Income tax expense for H1 2025 increased by **36.0%** year-on-year, mainly due to higher current tax in mainland China and increased withholding tax on dividends[34](index=34&type=chunk) [11. Dividends](index=12&type=section&id=11.%20Dividends) The Board does not recommend declaring an interim dividend for the first half of 2025 - The Board does not recommend declaring an **interim dividend** for the six months ended June 30, 2025[35](index=35&type=chunk) [12. Earnings Per Share Attributable to Owners of the Company](index=12&type=section&id=12.%20Earnings%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company) Basic earnings per share for H1 2025 slightly increased to RMB 0.23 cents, with unconverted convertible bonds having no dilutive effect on basic EPS | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Company | RMB 52,206,000 | RMB 50,266,000 | | Weighted Average Number of Ordinary Shares in Issue | 22,736,114,715 shares | 22,736,114,715 shares | | **Basic Earnings Per Share** | **RMB 0.23 cents** | **RMB 0.22 cents** | - Unconverted convertible bonds have no dilutive effect on the presented basic earnings per share amount[36](index=36&type=chunk) [13. Trade Receivables](index=12&type=section&id=13.%20Trade%20Receivables) As of June 30, 2025, total trade receivables increased by RMB 12.4 million to RMB 85.9 million, correlating with revenue growth | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables | 215,811 | 203,652 | | Impairment | (129,917) | (130,200) | | **Total** | **85,894** | **73,452** | - As of June 30, 2025, total trade receivables increased by **17.0%** to **RMB 85.9 million**, related to revenue growth[37](index=37&type=chunk) | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Unbilled and Billed within 3 Months | 36,193 | 32,716 | | 4 to 6 Months | 4,791 | 3,647 | | 7 to 12 Months | 13,479 | 19,591 | | Over 1 Year | 31,431 | 17,498 | [14. Trade and Bills Payables](index=13&type=section&id=14.%20Trade%20and%20Bills%20Payables) As of June 30, 2025, total trade and bills payables were RMB 113.3 million, remaining largely consistent with the end of 2024 | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 Months | 31,345 | 31,609 | | 4 to 6 Months | 10,987 | 11,412 | | 7 to 12 Months | 15,301 | 7,255 | | Over 1 Year | 52,922 | 51,952 | | Unbilled | 2,764 | 5,210 | | **Total** | **113,319** | **107,438** | - As of June 30, 2025, total trade and bills payables were **RMB 113.3 million**, a slight increase from the end of 2024[38](index=38&type=chunk) [15. Events After the Reporting Period](index=13&type=section&id=15.%20Events%20After%20the%20Reporting%20Period) Post-reporting period, on July 29, 2025, the Group established a 51%-owned joint venture with Beijing ENN New Energy Investment Co., Ltd., with a capital injection of RMB 40.8 million, to engage in integrated energy services - On July 29, 2025, the Group established a **51%-owned joint venture** with Beijing ENN New Energy Investment Co., Ltd., a wholly-owned subsidiary of ENN Energy Holdings Limited[39](index=39&type=chunk) - The joint venture was capitalized with **RMB 40,800,000** to engage in integrated energy services, investment, construction, and operation of integrated energy facilities, and smart energy management platforms[39](index=39&type=chunk) [16. Capital Commitments](index=13&type=section&id=16.%20Capital%20Commitments) As of June 30, 2025, the Group's capital commitments primarily for property, plant, and equipment totaled RMB 1.8 million, a significant decrease from the end of 2024 | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Property, Plant and Equipment | 1,814 | – | | Equity Interest in an Entity | – | 25,088 | | **Total** | **1,814** | **25,088** | - As of June 30, 2025, total capital commitments were **RMB 1.8 million**, a significant **92.8% decrease** from the end of 2024, primarily due to the completion of equity investment commitments from 2024 year-end[40](index=40&type=chunk) [17. Comparative Amounts](index=13&type=section&id=17.%20Comparative%20Amounts) The Group has changed the presentation currency of its consolidated financial statements from HKD to RMB, with comparative figures retrospectively restated - The Group has changed the presentation currency of its consolidated financial statements from HKD to RMB, with comparative figures retrospectively accounted for and restated[41](index=41&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the industry, a detailed business review, future outlook, and an in-depth analysis of the Group's financial performance and position [Industry Overview](index=14&type=section&id=Industry%20Overview) In H1 2025, global natural gas supply-demand remained fragile, domestic market was weak with a 0.9% decline in apparent consumption, while China promotes energy structure optimization and higher new energy power generation targets - In H1 2025, global natural gas supply-demand remained fragile, the domestic natural gas market was weak, and national apparent consumption decreased by **0.9%** year-on-year[42](index=42&type=chunk) - The Chinese government is committed to green and low-carbon transition, optimizing the energy structure, highlighting natural gas as a 'transition energy', and targeting **non-fossil energy power generation capacity to reach approximately 60% by 2025**[43](index=43&type=chunk) - As a key participant in the energy system, the Group continuously strengthens resource supply, enhances the efficiency of the entire natural gas industry chain, and actively expands into clean and low-carbon sectors[44](index=44&type=chunk) [Business Review](index=15&type=section&id=Business%20Review) In H1 2025, the Group's total gas sales volume grew 23.3% to 324.9 million cubic meters, revenue increased 28.7%, but gross margin declined, as it optimized city gas and accelerated new energy deployment | Metric | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Gas Sales Volume | 324.9 million cubic meters | 263.4 million cubic meters | 23.3% | | Revenue | RMB 1,019.6 million | RMB 792.4 million | 28.7% | | Gross Profit | RMB 12.3 million | RMB 15.2 million | (18.8%) | | Gross Margin | 1.2% | 1.9% | Decrease of 0.7 percentage points | | Profit for the Period | RMB 47.8 million | RMB 37.8 million | 26.5% | - The increase in profit for the period was primarily due to a decrease in administrative expenses and finance costs[45](index=45&type=chunk) - The Group's natural gas projects primarily cover **7 provinces and autonomous regions** in China[45](index=45&type=chunk) [Development and Operation of City Gas Business](index=16&type=section&id=Development%20and%20Operation%20of%20City%20Gas%20Business) - City gas business revenue was **RMB 441.0 million**, a **8.2% year-on-year decrease**, with connection revenue falling **19.3% to RMB 26.7 million**, mainly due to reduced industrial user connection services[48](index=48&type=chunk) - During the period, **14,386 new gas pipeline users** were connected, bringing the cumulative user count to **583,755**[48](index=48&type=chunk) | Metric | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Natural Gas Sales Volume | 131.7 million cubic meters | 141.9 million cubic meters | (7.2%) | | - Residential Users | 51.4 million cubic meters | 50.3 million cubic meters | 2.2% | | - Non-residential Users | 80.3 million cubic meters | 91.6 million cubic meters | (12.3%) | [LNG and CNG Trading and Distribution Business](index=17&type=section&id=LNG%20and%20CNG%20Trading%20and%20Distribution%20Business) - Total trade volume in H1 2025 was **192.3 million cubic meters**, a **67.4% year-on-year increase**, with segment sales of **RMB 570.2 million**, mainly due to the Group's enhanced market development in Zhejiang and Guangdong provinces for trading and distribution businesses[49](index=49&type=chunk) - The Group entered into a master agreement with a wholly-owned subsidiary of its controlling shareholder, Beijing Gas Group, to ensure natural gas supply from January 1, 2024, to December 31, 2026[50](index=50&type=chunk) [LNG Receiving Terminal Project](index=18&type=section&id=LNG%20Receiving%20Terminal%20Project) - The Group holds a **29% equity interest** in PetroChina Jingtang, an LNG receiving terminal that serves as a major winter peak-shaving and supply station for the Beijing-Tianjin-Hebei region[51](index=51&type=chunk) - In H1 2025, PetroChina Jingtang's total LNG receiving volume reached **2,959.9 million cubic meters**, a **10.9% year-on-year decrease**, primarily due to reduced gas demand in Beijing[51](index=51&type=chunk) [Development and Operation of Integrated Clean Energy and New Energy Business](index=18&type=section&id=Development%20and%20Operation%20of%20Integrated%20Clean%20Energy%20and%20New%20Energy%20Business) - The Group actively explores transformation, accelerating its new energy business layout in energy storage, distributed energy, and multi-energy complementarity through acquisitions, self-construction, and joint ventures[52](index=52&type=chunk)[56](index=56&type=chunk) - The Group holds a **49% equity interest** in Beijing Unite Energy Engineering Technology Co., Ltd., which primarily engages in planning, design, and consulting for gas, heating, integrated energy utilization, and new energy power generation projects[53](index=53&type=chunk) - The Beiqijia Business Park Energy Center project generated **RMB 6.7 million** in revenue (**458.3% year-on-year increase**) and **RMB 2.0 million** in segment profit (**81.8% year-on-year increase**) for the Group's integrated clean energy and new energy business[54](index=54&type=chunk) - The Yangzhou Wutingqiao Cylinder Liner Co., Ltd. user-side energy storage system project officially commenced operations in Q4 2024, with other energy storage businesses also starting operations in various regions[55](index=55&type=chunk) [Future Outlook](index=19&type=section&id=Future%20Outlook) For H2 2025, China's economy is expected to moderately recover, with deepening green and low-carbon energy transition, as the Group aims to strengthen natural gas, accelerate new energy, and transform into an integrated clean energy provider - In H2 2025, China's economy is expected to moderately recover, with deepening green and low-carbon energy transition and a continuous increase in clean energy's share[57](index=57&type=chunk) - The Group will actively respond to the 'Dual Carbon' strategy, consolidate its natural gas business advantages, accelerate new energy deployment, and transform into an integrated clean energy service provider[57](index=57&type=chunk) - In natural gas, the Group will strengthen synergy with its controlling shareholder to expand full industry chain advantages; in integrated energy, it will further improve new energy business layout and accelerate the transition of old and new growth drivers[57](index=57&type=chunk) [Financial Performance Analysis](index=20&type=section&id=Financial%20Performance%20Analysis) This section details H1 2025 financial performance, including revenue growth, gross profit decline, reduced administrative and finance costs, and increased impairment reversals, collectively leading to a slight rise in profit attributable to owners [Revenue](index=20&type=section&id=Revenue_MDA) - Revenue for H1 2025 was **RMB 1,019.6 million**, an increase of **28.7%** compared to H1 2024, primarily due to increased revenue from natural gas trading and distribution[58](index=58&type=chunk) [Gross Profit and Gross Margin](index=20&type=section&id=Gross%20Profit%20and%20Gross%20Margin_MDA) | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 12.3 | 15.2 | (18.8%) | | Gross Margin | 1.2% | 1.9% | Decrease of 0.7 percentage points | - The decline in gross margin was primarily due to rising cost of sales caused by continuous adjustments in upstream prices[59](index=59&type=chunk) [EBITDA](index=20&type=section&id=EBITDA_MDA) | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | EBITDA | 147.3 | 153.3 | (3.9%) | - EBITDA remained largely stable[60](index=60&type=chunk) [Other Income and Gains, Net](index=20&type=section&id=Other%20Income%20and%20Gains,%20Net_MDA) | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Other Income and Gains, Net | 9.5 | 4.2 | 5.3 | [Administrative Expenses](index=20&type=section&id=Administrative%20Expenses_MDA) | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 52.3 | 66.5 | (14.2) | - The decrease in administrative expenses was due to the Group's continuous implementation of cost reduction and efficiency improvement measures and enhanced operational efficiency[62](index=62&type=chunk) [Reversal of Impairment Losses on Financial Assets, Net](index=20&type=section&id=Reversal%20of%20Impairment%20Losses%20on%20Financial%20Assets,%20Net_MDA) | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Reversal of Impairment Losses on Financial Assets, Net | 8.0 | 1.6 | 6.4 | - The increase in impairment reversals was due to the recovery of previously recognized impairment losses on financial assets during the period[63](index=63&type=chunk) [Other Expenses, Net](index=20&type=section&id=Other%20Expenses,%20Net_MDA) | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Other Expenses, Net | 0.8 | 1.5 | (0.7) | [Finance Costs](index=20&type=section&id=Finance%20Costs_MDA) | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 45.5 | 58.3 | (22.0%) | - The decrease in finance costs was due to the Group's continuous implementation of cost reduction and efficiency improvement measures and enhanced operational efficiency[65](index=65&type=chunk) [Income Tax](index=21&type=section&id=Income%20Tax_MDA) | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Income Tax Expense | 15.2 | 11.2 | - Income tax expense primarily refers to current tax of **RMB 7.6 million** for PRC subsidiaries and withholding tax of **RMB 10.0 million** on dividends distributed by PRC subsidiaries[66](index=66&type=chunk) [Profit Attributable to Owners of the Company](index=21&type=section&id=Profit%20Attributable%20to%20Owners%20of%20the%20Company_MDA) | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Profit Attributable to Owners of the Company | 52.2 | 50.3 | 3.8% | - Profit attributable to owners of the Company remained largely stable compared to H1 2024[67](index=67&type=chunk) [Changes in Key Items of Condensed Consolidated Statement of Financial Position](index=21&type=section&id=Changes%20in%20Key%20Items%20of%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This section analyzes balance sheet changes, including increased non-current assets due to associate investments, higher trade receivables and lower prepayments in current assets, and reduced other payables in current liabilities [Non-current Assets](index=21&type=section&id=Non-current%20Assets_MDA) - The balance of property, plant and equipment decreased by **RMB 30.9 million** compared to the end of 2024, mainly due to depreciation provisions in H1 2025[68](index=68&type=chunk) - The net carrying amount of investments in associates increased compared to December 31, 2024, primarily due to the share of profit from associate PetroChina Jingtang during the period[69](index=69&type=chunk) [Current Assets](index=21&type=section&id=Current%20Assets_MDA) - The balance of trade receivables increased by **RMB 12.4 million** compared to December 31, 2024, related to revenue growth[70](index=70&type=chunk) - The balance of prepayments, deposits and other receivables decreased by **RMB 86.0 million** compared to December 31, 2024, mainly due to collections during the period[70](index=70&type=chunk) - Cash and cash equivalents balance was **RMB 364.7 million**, largely consistent with the balance as of December 31, 2024[71](index=71&type=chunk) [Non-current Liabilities](index=22&type=section&id=Non-current%20Liabilities_MDA) - The balance of non-current liabilities remained largely consistent with the balance as of December 31, 2024[72](index=72&type=chunk) [Current Liabilities](index=22&type=section&id=Current%20Liabilities_MDA) - The balance of other payables and accrued expenses decreased compared to December 31, 2024, mainly due to enhanced management by the Group during the period[73](index=73&type=chunk) - The balance of bank and other borrowings remained largely consistent with the balance as of December 31, 2024, primarily comprising shareholder loans from the controlling company and certain RMB bank borrowings[73](index=73&type=chunk) - Convertible bonds refer to those issued by the Company to Beijing Gas Company Limited with a total principal amount of **HKD 300 million**, maturing on December 28, 2025[73](index=73&type=chunk) [Capital Structure and Financial Resources](index=22&type=section&id=Capital%20Structure%20and%20Financial%20Resources) The Group maintains a sound financial policy, financing through equity, bank borrowings, and convertible bonds, with net current liabilities of RMB 2,038.6 million, a debt-to-asset ratio of 66.1%, and a net debt-to-equity ratio of 130.2% as of June 30, 2025 | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 364.7 | 360.3 | 1.2% | | Net Current Liabilities | (2,038.6) | (1,975.0) | (3.2%) | | Current Ratio | 0.29 | 0.31 | (6.5%) | | Debt-to-Asset Ratio | 66.1% | 66.7% | (0.6 percentage points) | | Leverage Ratio | 52.2% | 52.4% | (0.2 percentage points) | | Net Debt-to-Equity Ratio | 130.2% | 133.3% | (3.1 percentage points) | - Since 2023, the Group has leveraged the advantage of low-cost RMB financing to replace HKD and USD borrowings, securing **RMB bank borrowings equivalent to HKD 1,000 million** at lower interest rates in H1 2025[76](index=76&type=chunk) - The Group will continue to explore various financing options to enhance its financing portfolio and improve financial independence, with no financial instruments entered into for hedging purposes during the period[76](index=76&type=chunk) [Employee Information](index=23&type=section&id=Employee%20Information) As of June 30, 2025, the Group had 574 employees, with compensation based on market conditions and individual performance, including medical insurance and discretionary bonuses - As of June 30, 2025, the Group had **574 employees**, an increase of **10** from December 31, 2024[77](index=77&type=chunk) - Employee compensation is determined based on market conditions and individual performance, including medical insurance and discretionary bonuses[77](index=77&type=chunk) [Tax Relief](index=23&type=section&id=Tax%20Relief) The Company is unaware of any tax relief or exemptions granted to its shareholders for holding the Company's securities - The Company is unaware of any tax relief or exemptions granted to its shareholders for holding the Company's securities[78](index=78&type=chunk) [Pledge of the Group's Assets](index=24&type=section&id=Pledge%20of%20the%20Group's%20Assets) As of June 30, 2025, the Group's assets pledged include property, plant and equipment, equity interests in subsidiaries, investment properties, and collection rights for natural gas sales receivables - As of June 30, 2025, the Group's assets pledged include certain property, plant and equipment, equity interests in subsidiaries, investment properties, and collection rights for receivables from natural gas sales by a subsidiary[79](index=79&type=chunk)[80](index=80&type=chunk)[86](index=86&type=chunk) [Exchange Rate Fluctuation Risk](index=24&type=section&id=Exchange%20Rate%20Fluctuation%20Risk) Most of the Company's monetary assets and liabilities are denominated in RMB, limiting significant foreign currency risk, with no current hedging policy but ongoing monitoring by the Board to mitigate currency risks - Most of the Company's monetary assets and liabilities are denominated in RMB, thus not facing significant foreign currency risk[81](index=81&type=chunk) - Currently, the Group has no foreign currency hedging policy, but the Directors will continue to monitor relevant foreign exchange risks and take appropriate measures to mitigate currency risks[81](index=81&type=chunk) [Contingent Liabilities](index=24&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[82](index=82&type=chunk) [Events After the Reporting Period](index=24&type=section&id=Events%20After%20the%20Reporting%20Period_MDA) Details of material events after the reporting period are disclosed in Note 15 of this interim results announcement, with no other material events - Details of material events after the reporting period are contained in Note 15 of this interim results announcement, with no other material events[83](index=83&type=chunk) [Dividends](index=24&type=section&id=Dividends_MDA) The Board does not recommend declaring an interim dividend for the first half of 2025 - The Board does not recommend declaring an **interim dividend** for the first half of 2025[84](index=84&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=24&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries,%20Associates%20and%20Joint%20Ventures) Except as disclosed in this announcement, the Group had no material acquisitions or disposals of subsidiaries, associates, and joint ventures in H1 2025 - Except as disclosed in this announcement, the Group had no material acquisitions or disposals of subsidiaries, associates, and joint ventures for the six months ended June 30, 2025[85](index=85&type=chunk) [Material Investments and Future Plans for Material Investments or Capital Assets](index=25&type=section&id=Material%20Investments%20and%20Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) The Group entered into a joint venture cooperation agreement with Beijing ENN New Energy Investment Co., Ltd. on May 19, 2025, to engage in integrated energy services, with future plans to identify potential investment opportunities and conduct feasibility studies - On May 19, 2025, the Group entered into a joint venture cooperation agreement with Beijing ENN New Energy Investment Co., Ltd. to engage in integrated energy services[87](index=87&type=chunk) - Feasibility studies will be conducted and implementation plans developed to identify potential investment opportunities, funded by internal resources[87](index=87&type=chunk) [Corporate Governance and Other Information](index=25&type=section&id=Corporate%20Governance%20and%20Other%20Information) The Group is committed to high corporate governance standards, complying with Listing Rules, with the Audit Committee reviewing interim financial statements, no listed securities transactions, and the Board appointing a lead independent non-executive director [Audit Committee Review](index=25&type=section&id=Audit%20Committee%20Review) - The Board's Audit Committee has reviewed the Company's H1 2025 condensed consolidated financial statements and unaudited consolidated interim results, deeming appropriate accounting policies adopted and sufficient disclosures made[88](index=88&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=25&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) - In H1 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and as of June 30, 2025, the Company held no treasury shares[89](index=89&type=chunk) [Corporate Governance](index=25&type=section&id=Corporate%20Governance) - The Board is committed to upholding high standards of corporate governance and complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules during H1 2025[90](index=90&type=chunk)[91](index=91&type=chunk) - All Directors complied with the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules throughout H1 2025[92](index=92&type=chunk) [Directors](index=26&type=section&id=Directors) - The Board appointed Mr. Xu Jianwen, an independent non-executive Director, as the Lead Independent Non-executive Director, effective August 28, 2025, to act as an intermediary between other Directors and shareholders[93](index=93&type=chunk) [Publication of Results Announcement and Interim Report](index=26&type=section&id=Publication%20of%20Results%20Announcement%20and%20Interim%20Report) - This interim results announcement has been published on the HKEX website and the Company's website, and the interim report will be dispatched to shareholders and uploaded to the aforementioned websites in due course[94](index=94&type=chunk)

Financial Performance - Revenue for the six months ended June 30, 2025, was HKD 369,420,000, a decrease of 12.5% compared to HKD 422,038,000 for the same period in 2024[2] - Other income for the same period was HKD 3,302,000, down from HKD 7,796,000, representing a decline of 57.6%[2] - Selling expenses amounted to HKD 362,691,000, a decrease of 11.8% from HKD 411,526,000 in the previous year[2] - Administrative expenses were HKD 121,666,000, slightly down from HKD 125,258,000, indicating a reduction of 2.3%[2] - The company reported a loss before tax of HKD 153,800,000, compared to a loss of HKD 117,183,000 in the same period last year, reflecting an increase in losses of 31.1%[2] - The net loss for the period was HKD 147,326,000, compared to a loss of HKD 117,277,000 in the previous year, marking a 25.7% increase in losses[2] - Basic and diluted loss per share was HKD 21.84, compared to HKD 17.50 in the previous year, indicating a worsening of 24.0%[4] - The company did not declare any dividends for the period, consistent with the previous year[4] Assets and Liabilities - Non-current assets decreased from HKD 646,531,000 to HKD 599,827,000, a decline of approximately 7.2%[5] - Current assets decreased from HKD 1,092,436,000 to HKD 999,738,000, a decline of about 8.5%[6] - Total liabilities decreased from HKD 329,356,000 to HKD 325,483,000, a reduction of approximately 1.1%[6] - Total equity decreased from HKD 1,289,878,000 to HKD 1,177,386,000, a decline of about 8.7%[6] - Cash and cash equivalents decreased from HKD 210,526,000 to HKD 164,248,000, a decrease of approximately 22%[5] - The company reported a net current asset value of HKD 674,255,000, down from HKD 763,080,000, a decrease of about 11.7%[6] - The company’s total assets decreased from HKD 1,409,611,000 to HKD 1,274,082,000, a decline of approximately 9.6%[6] - The company’s total non-current liabilities decreased from HKD 119,733,000 to HKD 96,696,000, a reduction of about 19.2%[6] - The company’s total borrowings decreased from HKD 122,872,000 to HKD 108,241,000, a reduction of about 11.9%[6] Revenue Segmentation - The group identified two reportable segments: Property Agency and Financial Services, each requiring different business strategies[10] - Commission income from property agency services was HKD 362,985,000 for the six months ended June 30, 2025, compared to HKD 404,543,000 in 2024, indicating a decrease of about 10.3%[12] - Interest income from loans receivable was HKD 6,435,000 for the six months ended June 30, 2025, down from HKD 17,495,000 in 2024, reflecting a significant decline of approximately 63.2%[12] - The property agency business generated revenue of approximately HKD 363 million, accounting for 98% of the group's total revenue, while the financial services segment contributed approximately HKD 6 million, accounting for 2%[43] Operational Strategies - The financial results indicate a challenging market environment, prompting the company to explore new strategies for recovery and growth[2] - The company is focusing on improving operational efficiency to mitigate losses and enhance profitability in future periods[17] - The company is actively pursuing digital transformation strategies, enhancing its online property search platform "Banglin Find House" to provide a more precise and intelligent user experience[46] - The group aims to leverage AI innovation technology to address market demand dynamics and provide personalized services through an online and offline dual-track operation model[47] - The company has strengthened cost control and improved transaction skills to counter market fluctuations and prepare for industry recovery[42] Employee and Corporate Governance - The group had approximately 2,500 full-time employees as of June 30, 2025, emphasizing the importance of employees as valuable assets[53] - The group has established an audit committee consisting of three current independent non-executive directors to review the unaudited interim results for the six months ended June 30, 2025[49] - The company adopted a stock option plan on May 23, 2023, to attract and retain top employees, effective for 10 years[30] - A total of 67,380,000 shares can be purchased under the stock option plan, with a vesting period of no less than 12 months[35] - The maximum number of shares that can be issued under the plan does not exceed 10% of the company's issued share capital as of the adoption date, which is 67,414,998 shares[33] Market Outlook - The management anticipates a continued weak recovery in the domestic real estate market in the second half of 2025, with government policies expected to reduce uncertainty and clarify development trends[47] - The group has expanded its agency business coverage to approximately 40 major cities nationwide, with over 400 agency projects and around 10 second-hand branches[45] Financial Health - As of June 30, 2025, the group maintained a healthy financial position with cash and bank deposits of approximately HKD 164 million, down from HKD 211 million as of December 31, 2024[50] - The current ratio was 3.07 as of June 30, 2025, compared to 3.32 as of December 31, 2024[50] - Total borrowings amounted to approximately HKD 117 million, a decrease from HKD 123 million as of December 31, 2024[50] - The capital debt ratio was approximately 7.3% as of June 30, 2025, slightly up from 7.1% as of December 31, 2024[50] - The group pledged investment properties and machinery valued at approximately HKD 69 million to secure bank loans as of June 30, 2025, compared to HKD 66 million as of December 31, 2024[51] Related Party Transactions - There were no significant transactions with related parties during the six months ended June 30, 2025, consistent with the previous year[29] - The company did not recognize any impairment losses on accounts receivable for the six months ended June 30, 2025, similar to the previous year[27]

[Corporate Information](index=4&type=section&id=Corporate%20Information) This section provides an overview of the company's governance structure, key personnel, registered offices, and professional advisors [Board of Directors](index=4&type=section&id=Board%20of%20Directors) The Board of Directors experienced changes during the reporting period, with Mr. Xiong Jianping appointed as Executive Director and President, and a new Sustainability Committee established - Mr. Xiong Jianping was appointed Executive Director and President on July 24, 2025, succeeding Mr. Tao Junjie who resigned[6](index=6&type=chunk)[8](index=8&type=chunk) - The company established a Sustainability Committee on July 24, 2025, with Mr. Xiong Jianping as its Chairman[7](index=7&type=chunk)[8](index=8&type=chunk) [Registered Office and Contact Information](index=5&type=section&id=Registered%20Office%20and%20Contact%20Information) The company maintains a registered address in Bermuda and operates offices in Shenzhen, Singapore, and Hong Kong, providing comprehensive contact and share registrar details - The company is registered in Bermuda and has offices in Shenzhen, China, Singapore, and Hong Kong, facilitating global operations and shareholder services[9](index=9&type=chunk)[11](index=11&type=chunk) [Auditors and Legal Advisors](index=6&type=section&id=Auditors%20and%20Legal%20Advisors) The company has appointed KPMG as its auditor in compliance with SGX and HKEX listing rules and engages multiple legal advisors for professional services - KPMG has served as the company's auditor under SGX and HKEX listing rules since the 2024 financial year[13](index=13&type=chunk)[15](index=15&type=chunk) - The company engages Allen & Gledhill LLP, Li & Partners, and Beijing Yingke (Shenzhen) Law Firm as its legal advisors[14](index=14&type=chunk)[15](index=15&type=chunk) [Principal Bankers and Other Information](index=6&type=section&id=Principal%20Bankers%20and%20Other%20Information) The company collaborates with several major banks and provides public information such as its official website and stock codes - The company's principal bankers include Agricultural Bank of China, Bank of China, Bank of Communications, China Construction Bank, China Minsheng Bank, DBS Bank, Industrial and Commercial Bank of China, Mizuho Bank, and Postal Savings Bank of China[14](index=14&type=chunk)[15](index=15&type=chunk) - The company's official website is www.ebwater.com, and its stock codes are **U9E.SG** (SGX) and **1857.HK** (HKEX)[15](index=15&type=chunk)[16](index=16&type=chunk) [Financial Highlights](index=7&type=section&id=Financial%20Highlights) This section summarizes the company's financial performance and position for the first half of FY2025, detailing revenue, profit, assets, and liabilities [1HFY2025 Financial Performance](index=7&type=section&id=1HFY2025%20Financial%20Performance) In 1HFY2025, the company's revenue decreased by 2% year-on-year to HKD 3.28 billion, while gross profit increased by 8% to HKD 1.369 billion, with gross margin improving by 4 percentage points to 42% 1HFY2025 Financial Performance Overview | Indicator | 1HFY2025 (Thousand HKD) | 1HFY2024 (Thousand HKD) | Percentage Change | | :--- | :--- | :--- | :--- | | Revenue | 3,279,565 | 3,352,595 | (2%) | | Gross Profit | 1,369,235 | 1,269,233 | 8% | | EBITDA | 1,194,117 | 1,196,486 | (0.2%) | | Profit Attributable to Equity Holders of the Company | 563,760 | 581,146 | (3%) | | Basic Earnings Per Share (HK cents) | 19.71 | 20.31 | (3%) | | Interim Dividend Per Share (HK cents) | 6.09 | 6.09 | – | | Interim Dividend Per Share (S$ cents) | 0.99 | 1.05 | (6%) | - Overall gross profit margin increased by **4 percentage points to 42%** from 38% in the same period last year[17](index=17&type=chunk) [1HFY2025 Financial Position](index=7&type=section&id=1HFY2025%20Financial%20Position) As of June 30, 2025, the company's total assets grew by 6% to HKD 38.213 billion, total liabilities increased by 7% to HKD 23.391 billion, and equity attributable to equity holders rose by 7% 1HFY2025 Financial Position Overview | Indicator | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | Percentage Change | | :--- | :--- | :--- | :--- | | Total Assets | 38,212,846 | 35,889,362 | 6% | | Total Liabilities | 23,391,257 | 21,897,684 | 7% | | Equity Attributable to Equity Holders of the Company | 12,614,517 | 11,835,120 | 7% | | Net Asset Value Per Share (HKD) | 4.41 | 4.14 | 7% | | Gearing Ratio (%) | 61.2 | 61.0 | 0.2ppt** | [Business Review and Prospects](index=8&type=section&id=Business%20Review%20and%20Prospects) This section reviews the company's operating performance, market expansion, project portfolio, operational efficiency, safety and environmental management, technological innovation, capital market activities, social responsibility, and future industry outlook [Operating Results](index=8&type=section&id=Operating%20Results) In 1HFY2025, China Everbright Water maintained its leading position in the industry by adhering to green, low-carbon, and high-quality development principles amidst a complex international environment, achieving progress across various operational aspects and maintaining its interim dividend - The company upholds green, low-carbon, and high-quality development principles, adheres to the general tone of seeking progress while maintaining stability, deepens core businesses, coordinates development and innovation, achieves steady operations, and continuously solidifies its industry-leading position[20](index=20&type=chunk)[21](index=21&type=chunk) [Overall Performance & Market Expansion](index=9&type=section&id=Overall%20Performance%20%26%20Market%20Expansion) The company experienced a slight decrease in revenue and profit attributable to equity holders in 1HFY2025 but achieved a significant improvement in gross margin, while expanding its light-asset business model in China and overseas with new contracts totaling approximately RMB 60 million 1HFY2025 Key Financial Indicators | Indicator | 1HFY2025 | 1HFY2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | HKD 3.28 billion | HKD 3.353 billion | Decrease of 2% | | EBITDA | HKD 1.194 billion | HKD 1.196 billion | Largely flat | | Profit Attributable to Equity Holders of the Company | HKD 564 million | HKD 581 million | Decrease of 3% | | Basic Earnings Per Share | 19.71 HK cents | 20.31 HK cents | Decrease of 3% | | Overall Gross Profit Margin | 42% | 38% | Increase of 4 percentage points | - The company secured new light-asset business contracts totaling approximately **RMB 60 million** in Hubei, Jiangsu, Zhejiang provinces in China, and the Thai market, adding **10,000 cubic meters/day** of industrial wastewater treatment design capacity[23](index=23&type=chunk)[25](index=25&type=chunk) [Project Portfolio & Capacity](index=10&type=section&id=Project%20Portfolio%20%26%20Capacity) As of June 30, 2025, the company invested in and held 170 environmental protection projects with a total investment of approximately RMB 31.63 billion, spanning 13 provinces, municipalities, and autonomous regions in China, as well as overseas markets like Mauritius, achieving a total water treatment/supply capacity of 7,618,600 cubic meters/day - As of June 30, 2025, the company invested in and held **170 environmental protection projects**, with a total investment of approximately **RMB 31.63 billion**[26](index=26&type=chunk)[27](index=27&type=chunk) Project Count and Water Treatment/Supply Capacity by Category | Project Category | Project Count (Units) | Water Treatment/Supply Capacity (Cubic Meters/Day) | | :--- | :--- | :--- | | Municipal Wastewater Treatment Projects | 135 | 5,823,000 | | Industrial Wastewater Treatment Projects | 27 | 506,000 | | Reclaimed Water Projects | 8 | 324,600 | | River Basin Management Projects | 6 | 115,000 | | Water Supply Projects | 3 | 250,000 | | Raw Water Protection Projects | 1 | 600,000 | | Sludge Treatment and Disposal Projects | 2 | Not Applicable | | Livestock and Poultry Waste Resource Utilization Projects | 1 | Not Applicable | | Total | 183 | 7,618,600 | [Operations Management & Efficiency Enhancement](index=11&type=section&id=Operations%20Management%20%26%20Efficiency) The company enhances operational quality and efficiency through technological innovation and refined management, implements cost reduction measures, establishes a digital supply chain system, expands open-source businesses, and operates photovoltaic power generation facilities at 12 projects, providing approximately 20 million kWh of green electricity annually - The company continues to implement refined management measures such as optimizing chemical types, precise dosing, and equipment energy performance contracting, further reducing operating costs for existing projects[31](index=31&type=chunk)[32](index=32&type=chunk) - As of June 30, 2025, photovoltaic power generation facilities at **12 of the company's projects** are operational, with a total installed capacity of approximately **20 MW**, expected to provide about **20 million kWh of green electricity annually**[31](index=31&type=chunk)[32](index=32&type=chunk) - In 1HFY2025, the company received various government subsidies totaling approximately **RMB 27.5 million**; it cumulatively treated approximately **835 million cubic meters of wastewater** and supplied approximately **20 million cubic meters of reclaimed water**[31](index=31&type=chunk)[32](index=32&type=chunk) [Safety & Environmental Management](index=12&type=section&id=Safety%20%26%20Environmental%20Management) The company continuously strengthens safety and environmental leadership, conducts "Safety Production Month" activities, and promotes a "Three-Year Action Plan for Fundamental Safety Production Improvement" to achieve "zero safety accidents and zero environmental incidents" in engineering construction and operational projects - The company organized "Safety Production Month" activities and continuously promoted the "Three-Year Action Plan for Fundamental Safety Production Improvement," strengthening supervision of safety and environmental work[33](index=33&type=chunk)[36](index=36&type=chunk) - The company achieved the goal of "zero safety accidents and zero environmental incidents" ("dual zero") for engineering construction and operational projects, maintaining a stable safety production situation[33](index=33&type=chunk)[36](index=36&type=chunk) [Technological Innovation & Project Construction](index=12&type=section&id=Technological%20Innovation%20%26%20Project%20Construction) Adhering to a "technology innovation-led development" strategy, the company obtained 3 new authorized intellectual property rights, including 1 invention patent, in 1HFY2025, while commencing 2 new projects and completing 5 projects, adding 700,000 cubic meters/day of wastewater treatment design capacity - In 1HFY2025, the company obtained **3 new authorized intellectual property rights**, including **1 invention patent**[34](index=34&type=chunk)[36](index=36&type=chunk) - The company commenced construction on **2 new projects** with a design capacity of **15,000 cubic meters/day of reclaimed water supply**; **5 projects were completed and put into operation**, with a design capacity of **700,000 cubic meters/day of wastewater treatment**[35](index=35&type=chunk)[36](index=36&type=chunk) [Capital Market & Financing](index=13&type=section&id=Capital%20Market%20%26%20Financing) The company continuously optimizes its financing structure to reduce financial costs by adjusting loan terms, currencies, and interest rates, strengthens accounts receivable management, and completed three tranches of medium-term notes totaling RMB 3.2 billion in mainland China during 1HFY2025 - The company continuously optimizes its financing structure by adjusting loan terms, currencies, and interest rates to reduce financial costs, while strengthening accounts receivable management to effectively control liquidity risks[37](index=37&type=chunk)[38](index=38&type=chunk) 1HFY2025 Major Financing Arrangements | Issuance Date | Financing Arrangement and Use of Proceeds | Issuance Size (RMB) | | :--- | :--- | :--- | | January 2025 | Issuance of the first tranche of medium-term notes for 2025, used to supplement working capital | RMB 1.5 billion | | April 2025 | Issuance of the second tranche of medium-term notes for 2025, used to repay maturing debt | RMB 1 billion | | June 2025 | Issuance of the third tranche of medium-term notes for 2025, used to redeem existing perpetual medium-term notes | RMB 0.7 billion | [Social Responsibility & Awards](index=14&type=section&id=Social%20Responsibility%20%26%20Awards) The company actively fulfills its corporate social responsibility, participates in industry exchanges, conducts environmental public welfare activities, and launched its "World Environment Day" series of brand public welfare activities for the eighth consecutive year, receiving multiple accolades during the reporting period - The company launched its "World Environment Day" series of brand public welfare activities for the **8th consecutive year**; as of June 30, 2025, **49 projects are open to the public**, having hosted over **6,000 visitors** in 1HFY2025[40](index=40&type=chunk)[41](index=41&type=chunk) 1HFY2025 Major Awards | Award Name | Awarding Body | | :--- | :--- | | One of the "Top 10 Influential Enterprises in China's Water Industry" (8th consecutive year) | E20 Environmental Platform | | "Benchmark Award for Smart Circular Governance of Water Ecology" | 1st Macao 2025 ESG Excellence Awards | | First inclusion in "The Sustainability Yearbook" (China Edition) | S&P Global | | Everbright Water (Suzhou) Co., Ltd. and Everbright Water (Zibo) Co., Ltd. selected for the "First Batch of Youth Ecological Civilization Education Practice Venues" list | China Ministry of Ecology and Environment Publicity and Education Center | | Zibo Zhangdian Eastern Chemical Industrial Park Industrial Wastewater Treatment Project in Shandong rated as an "Excellent Case for Industrial Park Wastewater Treatment" | E20 Environmental Platform | | Zibo Water and Shandong Binzhou Development Zone Wastewater Treatment Project rated as an "Excellent Case for Municipal Wastewater Treatment" | E20 Environmental Platform | [Interim Dividend](index=16&type=section&id=Interim%20Dividend) The Board of Directors declared an interim dividend of 6.09 HK cents per ordinary share for 1HFY2025, consistent with the prior year, to continue sharing operating results with shareholders - The Board of Directors declared an interim dividend of **6.09 HK cents** (equivalent to **0.99 S$ cents**) per ordinary share for 1HFY2025, consistent with 1HFY2024[44](index=44&type=chunk)[46](index=46&type=chunk) [Industry Prospects](index=16&type=section&id=Industry%20Prospects) The company will actively seize development opportunities in the environmental protection industry, focusing on "stable growth in scale and stable improvement in efficiency" as dual priorities, and driving business with unconventional thinking and measures - The company will actively assess and seize development opportunities in the environmental protection industry, adhering to the general tone of seeking progress while maintaining stability, and focusing on the "dual priorities" of stable growth in scale and stable improvement in efficiency[45](index=45&type=chunk)[47](index=47&type=chunk) - The company will focus on five core tasks: scale growth, cost reduction and efficiency improvement, accounts receivable collection, compliance and risk control, and organizational optimization, to drive its transformation from a "traditional water operator" to a "technology-driven environmental service provider"[45](index=45&type=chunk)[47](index=47&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a detailed analysis of the company's financial performance, financial position, resources, borrowings, foreign exchange risks, asset pledges, commitments, contingent liabilities, and significant events [Financial Results](index=17&type=section&id=Financial%20Results) In 1HFY2025, the company's revenue decreased by 2% year-on-year, primarily due to reduced construction service revenue, although operating revenue increased, while gross profit grew by 8% and profit attributable to equity holders decreased by 3% 1HFY2025 Revenue Composition and Gross Profit Change | Indicator | 1HFY2025 (Billion HKD) | 1HFY2024 (Billion HKD) | Change | | :--- | :--- | :--- | :--- | | Total Revenue | 3.280 | 3.353 | Decrease of 2% | | Construction Service Revenue | 1.164 | 1.355 | Decrease | | Operating Revenue | 1.477 | 1.301 | Increase | | Finance Income | 0.559 | 0.564 | Slight decrease | | Gross Profit | 1.369 | 1.269 | Increase of 8% | | Profit Attributable to Equity Holders of the Company | 0.564 | 0.581 | Decrease of 3% | [Financial Position](index=17&type=section&id=Financial%20Position) As of June 30, 2025, the company's total assets were approximately HKD 38.21 billion, with net assets of HKD 14.82 billion, while net asset value per share increased by 7% to HKD 4.41, and the gearing ratio slightly rose by 0.2 percentage points to 61.2% - As of June 30, 2025, the company's total assets were approximately **HKD 38.21 billion**, with net assets of **HKD 14.82 billion**[49](index=49&type=chunk)[51](index=51&type=chunk) - Net asset value attributable to equity holders of the company was **HKD 4.41 per share**, an increase of **7%** compared to the end of FY2024[49](index=49&type=chunk)[51](index=51&type=chunk) - The gearing ratio was **61.2%**, a slight increase of **0.2 percentage points** from 61.0% at the end of FY2024[49](index=49&type=chunk)[51](index=51&type=chunk) [Financial Resources](index=18&type=section&id=Financial%20Resources) The company adopts a prudent cash and financial management strategy, with primary funding sources including internal cash flow, bank loans, and bond issuance, holding approximately HKD 1.87 billion in cash and bank balances as of June 30, 2025, with about 99% denominated in HKD and RMB - As of June 30, 2025, the company held cash and bank balances of approximately **HKD 1.87 billion**, an increase of **HKD 21.97 million** from the end of FY2024[52](index=52&type=chunk)[53](index=53&type=chunk) - The majority of the company's cash and bank balances (approximately **99%**) are denominated in HKD and RMB[52](index=52&type=chunk)[53](index=53&type=chunk) [Group Borrowings and Debt Securities](index=18&type=section&id=Borrowings%20and%20Debt%20Securities%20of%20the%20Group) As of June 30, 2025, the company's outstanding borrowings totaled HKD 17.26 billion, an increase of HKD 867 million from the end of FY2024, with 60% fixed-rate and 40% floating-rate, all denominated in RMB, and HKD 5.08 billion of its HKD 12.33 billion bank loan facilities remaining unutilized Group Borrowings and Debt Securities Overview | Indicator | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Payable within one year or on demand (secured) | 473,698 | 452,917 | | Payable within one year or on demand (unsecured) | 3,255,711 | 3,728,412 | | Payable after one year (secured) | 4,140,151 | 4,268,921 | | Payable after one year (unsecured) | 9,386,820 | 7,939,360 | - As of June 30, 2025, the company's outstanding borrowings totaled **HKD 17.26 billion**, an increase of **HKD 866.77 million** from the end of FY2024[57](index=57&type=chunk)[61](index=61&type=chunk) - All borrowings are denominated in RMB, with **60%** being fixed-rate and **40%** floating-rate[57](index=57&type=chunk)[61](index=61&type=chunk) - The company has bank loan facilities of **HKD 12.33 billion**, of which **HKD 5.08 billion** remains unutilized[57](index=57&type=chunk)[61](index=61&type=chunk) [Foreign Exchange Risks](index=19&type=section&id=Foreign%20Exchange%20Risks) Operating primarily in China, the company faces foreign currency transaction and translation risks involving USD, EUR, SGD, KRW, HKD, and RMB, which impacted 1HFY2025 results, but the Board believes future fluctuations will not materially affect operations, and no formal hedging policy is in place - The company primarily operates in China and faces foreign currency transaction and translation risks involving USD, EUR, SGD, KRW, HKD, and RMB[59](index=59&type=chunk)[62](index=62&type=chunk) - While 1HFY2025 was affected by exchange rate fluctuations, the company has not adopted any formal hedging policy or used any financial instruments for hedging purposes[59](index=59&type=chunk)[62](index=62&type=chunk) [Pledge of Assets](index=20&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, certain bank loan facilities and asset-backed securities issuances are secured by related revenue, intangible assets, contract assets, and receivables under service concession arrangements, with a total net book value of pledged assets amounting to HKD 9.37 billion - As of June 30, 2025, the total net book value of pledged assets was **HKD 9.37 billion**, used to secure bank loan facilities and asset-backed securities issuances[63](index=63&type=chunk)[66](index=66&type=chunk) [Commitments](index=20&type=section&id=Commitments) As of June 30, 2025, the company had procurement commitments of HKD 279.15 million for construction contracts and capital commitments of HKD 5.46 million for a joint venture, planning to fund these through internal resources, external borrowings, or a combination of both - As of June 30, 2025, the company had procurement commitments of **HKD 279.15 million** contracted for construction projects[64](index=64&type=chunk)[67](index=67&type=chunk) - The company had capital commitments of **HKD 5.46 million** related to capital injection into a joint venture[64](index=64&type=chunk)[67](index=67&type=chunk) [Contingent Liabilities](index=20&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the company provided financial guarantees for two subsidiaries with a maximum liability provision of HKD 1.93 billion, but the Board considers the likelihood of claims against the company under these guarantees to be low, thus no contingent liabilities were recognized at the consolidated level - As of June 30, 2025, the company provided financial guarantees for two subsidiaries, with a maximum liability provision of **HKD 1.93 billion**[65](index=65&type=chunk)[68](index=68&type=chunk) - The Board believes the likelihood of claims being made against the company by the holders of these guarantees is low, thus no contingent liabilities were recognized at the consolidated level[65](index=65&type=chunk)[68](index=68&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=21&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries,%20Associates%20and%20Joint%20Ventures) In 1HFY2025, the company established a subsidiary, EW (Zhengzhou) Water Operation Co., Ltd., and formed a joint venture with Everbright Environment and others, with a registered capital of RMB 50 million - The company established a subsidiary, Everbright Water (Zhengzhou) Water Operation Co., Ltd., with a registered capital of **RMB 6 million**, to undertake two wastewater treatment plants in Henan Province[69](index=69&type=chunk)[70](index=70&type=chunk) - The company entered into a joint venture agreement with China Everbright Environment Group Limited and others to establish a joint venture with a registered capital of **RMB 50 million**, in which the company holds a **10% stake**[69](index=69&type=chunk)[70](index=70&type=chunk) [Significant Investments](index=22&type=section&id=Significant%20Investments) During the review period, the company did not hold any significant investments representing 5% or more of the Group's total assets - The company held no significant investments representing **5% or more** of the Group's total assets during the review period[72](index=72&type=chunk)[76](index=76&type=chunk) [Future Plans for Material Investments or Capital Assets](index=22&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) Apart from future plans disclosed in the listing document on April 24, 2019, the company had no other future plans for material investments or capital asset acquisitions in 1HFY2025 - Apart from those disclosed in the listing document on April 24, 2019, the company had no other future plans for material investments or capital asset acquisitions in 1HFY2025[73](index=73&type=chunk)[77](index=77&type=chunk) [Events After the Reporting Period](index=22&type=section&id=Event%20After%20the%20Reporting%20Period) Effective July 24, 2025, Mr. Xiong Jianping was appointed Executive Director and President, and the company established a Sustainability Committee to oversee ESG matters - Effective July 24, 2025, Mr. Xiong Jianping was appointed Executive Director and President, succeeding Mr. Tao Junjie[74](index=74&type=chunk)[78](index=78&type=chunk) - On the same day, the company established a Sustainability Committee under the Board of Directors to oversee the management of environmental, social, and governance (ESG) matters[74](index=74&type=chunk)[78](index=78&type=chunk) [Interested Person Transactions Mandate and Aggregate Value of Such Transactions](index=23&type=section&id=Interested%20Person%20Transactions%20Mandate%20and%20Aggregate%20Value%20of%20Such%20Transactions) The company's general mandate for interested person transactions was renewed at the Annual General Meeting on April 23, 2025, with the aggregate value of such transactions exceeding S$100,000 in 1HFY2025, primarily involving its controlling shareholder and its associates - The company's general mandate for interested person transactions was renewed at the Annual General Meeting held on April 23, 2025[79](index=79&type=chunk)[80](index=80&type=chunk) 1HFY2025 Aggregate Value of Interested Person Transactions (Exceeding S$100,000) | Name of Interested Person | Nature of Relationship | Aggregate Value of All Interested Person Transactions Conducted Under the Interested Person Transactions Mandate (HKD) | | :--- | :--- | :--- | | Everbright Environment | Controlling Shareholder | 84,891,000 (equivalent to S$14,449,000) | | Everbright Securities Company Limited | Associate of Controlling Shareholder | 4,119,000 (equivalent to S$701,000) | | Everbright Everbright Life Insurance Co., Ltd. | Associate of Controlling Shareholder | 1,019,000 (equivalent to S$173,000) | [Internal Management](index=24&type=section&id=Internal%20Management) The company has established a robust corporate governance framework with five Board committees, a Management Committee (now replaced by the President's Office Meeting) overseeing daily operations, multiple functional departments, eight regional management centers, and fully implemented ESHS and risk management systems to enhance management quality and risk control capabilities - The company has established a robust corporate governance framework, with five committees under the Board of Directors: Audit, Remuneration, Nominating, Strategy, and Sustainability[82](index=82&type=chunk)[84](index=84&type=chunk) - The Management Committee was dissolved effective August 12, 2025, and its functions and responsibilities have been assumed by the President's Office Meeting[85](index=85&type=chunk) - The company fully implements Environmental, Safety, Health, and Social Responsibility (ESHS) management systems and risk management systems to standardize management across all stages of project investment, construction, and operation[86](index=86&type=chunk)[88](index=88&type=chunk) [Human Resource Management](index=26&type=section&id=Human%20Resource%20Management) Adhering to a "people-oriented" philosophy, the company deeply implements its talent strategy, employing approximately 1,860 staff as of June 30, 2025, and ensuring employee rights and enhancing capabilities through online and offline training, dynamic selection mechanisms, and optimized compensation plans to provide talent assurance for high-quality development - As of June 30, 2025, the company employed approximately **1,860 staff** (including Hong Kong and Singapore)[91](index=91&type=chunk)[93](index=93&type=chunk) - The company enhances the capabilities of management personnel and employees through specialized training programs such as "Cloud Sail Program," "Voyage Program," and "Management Talent Soul-Forging and Empowerment"[89](index=89&type=chunk)[90](index=90&type=chunk) - The company continuously optimizes its compensation distribution plan, prioritizing frontline production staff, key core positions, urgently needed talent, and departments and individuals with outstanding performance in performance appraisals[89](index=89&type=chunk)[90](index=90&type=chunk) [Principal Risks and Uncertainties](index=27&type=section&id=Principal%20Risks%20and%20Uncertainties) During the review period, the company continuously strengthened risk management, identified and assessed major risks such as policy changes, new business investment and market competition, environmental compliance and safety production management, accounts receivable, project management, staffing, financing management, and cost control, and formulated corresponding control measures - The company, based on the requirements of its "Risk Management System" and "Risk Management Manual," fully identified and assessed the major risks faced during the review period and formulated targeted control measures[92](index=92&type=chunk)[94](index=94&type=chunk) [Policy Changing Risk](index=28&type=section&id=Policy%20Changing%20Risk) The company faces risks from changes in laws and policies in China's wastewater treatment, river basin ecological restoration, and sponge city construction sectors, with countermeasures including closely monitoring policy changes, organizing teams for research and interpretation, and timely adjusting strategies and business models - The company faces risks from changes in laws and policies in China's wastewater treatment, river basin ecological restoration, sponge city construction, reclaimed water reuse, water supply, wastewater source heat pump, potential new business investment projects, and PPP mechanisms[95](index=95&type=chunk)[97](index=97&type=chunk) - Countermeasures include assigning dedicated personnel to regularly update and summarize national laws and policies, organizing internal teams and external experts to research and interpret new regulations, and timely adjusting development strategies and business models[98](index=98&type=chunk)[99](index=99&type=chunk) [New Business Investment and Market Competition Risks](index=29&type=section&id=New%20Business%20Investment%20and%20Market%20Competition%20Risks) With increasing competition in the water industry, the company faces risks of unsatisfactory investment returns or unclear competitive advantages, addressed by focusing on core businesses, increasing new business research, expanding overseas operations, and driving business development through technology - With a large influx of capital and competitors into the water industry, overall market competition is intensifying, and the company faces risks of unsatisfactory investment returns or unclear competitive advantages[100](index=100&type=chunk)[102](index=102&type=chunk) - Countermeasures include re-evaluating and optimizing development strategies, focusing on "pan-water" core businesses, strengthening light-asset service capabilities, increasing new business research, actively expanding overseas operations, and driving business development through "five small innovations" and other methods[103](index=103&type=chunk)[106](index=106&type=chunk) [Environmental Compliance and Safety Production Management Risks](index=31&type=section&id=Environmental%20Compliance%20and%20Safety%20Production%20Management%20Risks) As the Chinese government strengthens environmental compliance and safety production management regulations, the company faces increasing compliance pressure, addressed by enhancing process control, emphasizing safety management capacity building, conducting investigations and special rectifications, strengthening education and training, and improving monitoring and early warning systems - The Chinese government has introduced and revised several laws and regulations concerning environmental compliance and safety production management, strengthening relevant supervision and penalties, leading to increasingly severe environmental compliance and safety production management pressure for the company[107](index=107&type=chunk)[109](index=109&type=chunk) - Countermeasures include strengthening control in all aspects of business expansion, design, engineering construction, and operation, comprehensively implementing the all-staff safety and environmental responsibility system, continuously carrying out special investigations and rectifications of major accident hazards, strengthening training and assessment for safety and environmental personnel, and fully utilizing information sharing platforms, environmental monitoring platforms, and testing platforms to enhance monitoring and early warning[110](index=110&type=chunk)[113](index=113&type=chunk) [Trade Receivables Risk](index=33&type=section&id=Trade%20Receivables%20Risk) With local Chinese governments as its primary clients, the company faces accounts receivable collection risks due to macroeconomic impacts, addressed by improving management mechanisms, implementing differentiated collection strategies, exploring diversified recovery channels, and strengthening liquidity management - The company's primary clients are local Chinese governments, and a decline in their fiscal payment capacity or delayed payment of service fees could impact the company's capital management and profits[114](index=114&type=chunk)[116](index=116&type=chunk) - Countermeasures include prioritizing accounts receivable collection, establishing a "special team, ledger, incentive, and assessment" work mechanism, implementing differentiated collection strategies, exploring diversified recovery channels such as "phased clearance of historical arrears," and strengthening liquidity management[117](index=117&type=chunk)[119](index=119&type=chunk) [Construction Project Management Risk](index=35&type=section&id=Construction%20Project%20Management%20Risk) Construction projects are susceptible to various factors that can lead to safety, quality, schedule, and cost issues, addressed by strengthening engineering information management, schedule control, budget control, and conducting on-site special and random inspections - Construction projects are affected by various factors such as design flaws, insufficient personnel, tight schedules, and inadequate contractor supervision, which can lead to engineering safety, quality issues, schedule delays, and cost control problems[120](index=120&type=chunk)[122](index=122&type=chunk) - Countermeasures include implementing full-process management through an engineering management information system, comprehensively tracking the progress of all construction projects, strictly controlling project budgets, and continuously conducting special and random inspections for safety, environment, and quality in engineering projects[123](index=123&type=chunk)[126](index=126&type=chunk) [Staff Deployment Risk](index=37&type=section&id=Staff%20Deployment%20Risk) The water industry requires long cultivation periods for key management and technical talent, and personnel turnover can adversely affect business development, addressed by fostering corporate culture, establishing a talent reserve, providing regular employee training, and optimizing selection and appointment systems - The cultivation of key management and technical talent in the water industry has a certain cycle, and if key personnel leave and suitable replacements cannot be found in the short term, it may adversely affect the company's business development[127](index=127&type=chunk)[129](index=129&type=chunk) - Countermeasures include continuously committing to corporate culture building, establishing a talent reserve and regularly conducting professional training, and optimizing the selection and appointment system to facilitate employee career progression[130](index=130&type=chunk)[131](index=131&type=chunk) [Financing Management Risk](index=38&type=section&id=Financing%20Management%20Risk) The capital-intensive business model of the water industry requires significant upfront investment, exposing the company to risks in financing cost control and securing financing scale, addressed by scientifically formulating financing plans, timely adjusting loan structures, and strengthening liquidity management - The capital-intensive business model of the water industry requires the company to invest significant funds upfront for project construction, with service fees recovered gradually after construction completion and entry into the operational phase, posing risks in financing cost control and securing financing scale[132](index=132&type=chunk)[134](index=134&type=chunk) - Countermeasures include scientifically formulating financing plans, coordinating the management of domestic and international funds, timely adjusting loan structures, strictly controlling asset-liability ratios and fund utilization, and continuously urging project companies to actively collect wastewater treatment service fees and reduce the scale of accounts receivable[135](index=135&type=chunk)[136](index=136&type=chunk) [Cost Control Risk](index=39&type=section&id=Cost%20Control%20Risk) Market fluctuations and policy impacts may lead to increased costs due to price adjustments by upstream suppliers, addressed by exploring operational potential, leveraging centralized procurement advantages, and strengthening budget and process control - Due to market fluctuations and relevant Chinese government policies, upstream suppliers may increase prices due to regulatory policies, production capacity limitations, and rising costs, leading to increased costs[137](index=137&type=chunk)[139](index=139&type=chunk) - Countermeasures include continuously prioritizing energy saving and consumption reduction in operations, reducing production costs through operational benchmarking and refined management, fully leveraging the scale and flexibility advantages of centralized and regional procurement, and establishing strict budget targets for all ongoing and operational projects, strengthening budget and process control[140](index=140&type=chunk)[141](index=141&type=chunk) [Environmental and Social Management](index=40&type=section&id=Environmental%20and%20Social%20Management) The company actively fulfills its environmental and social responsibilities, integrating ESHS management into its operations, with all projects certified or seeking certification for international management systems, strictly adhering to environmental laws, and most projects' effluent quality meeting or exceeding national standards, with no significant violations in 1HFY2025, and a newly established Sustainability Committee to oversee ESG matters - All of the company's projects have obtained or are applying for international management system certifications such as **ISO 9001 Quality Management System**, **ISO 14001 Environmental Management System**, and **ISO 45001 Occupational Health and Safety Management System**[142](index=142&type=chunk)[143](index=143&type=chunk) - The company strictly complies with environmental protection, safety production, occupational health, and social responsibility laws and regulations, with the effluent quality of most projects meeting or even exceeding the **Class 1A standard** of the "Discharge Standard of Pollutants for Municipal Wastewater Treatment Plants" (GB18918-2002)[144](index=144&type=chunk)[145](index=145&type=chunk) - In 1HFY2025, the company had no record of significant losses or impacts due to non-compliant activities or violations of environmental and social laws and regulations[144](index=144&type=chunk)[145](index=145&type=chunk) - Effective July 24, 2025, the company established a Sustainability Committee under the Board of Directors to oversee the management of ESG matters[146](index=146&type=chunk)[148](index=148&type=chunk) - As of June 30, 2025, **49 of the company's projects are officially open to the public**, having hosted **122 public visits** and over **6,000 visitors** in 1HFY2025[149](index=149&type=chunk)[150](index=150&type=chunk) [Disclosure of Interests](index=44&type=section&id=Disclosure%20of%20Interests) This section details the interests and short positions of directors, chief executive, substantial shareholders, and other persons in the company's shares, underlying shares, and debentures [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=44&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures) As of June 30, 2025, none of the company's directors, chief executive, or their respective associates held any interests or short positions in the shares, underlying shares, or debentures of the company and/or any associated corporations - As of June 30, 2025, none of the company's directors, chief executive, or their respective associates held any interests or short positions in the shares, underlying shares, or debentures of the company and/or any associated corporations[151](index=151&type=chunk)[153](index=153&type=chunk) [Directors' Rights to Acquire Shares or Debentures](index=44&type=section&id=Directors'%20Rights%20to%20Acquire%20Shares%20or%20Debentures) During the review period, neither the company nor any of its subsidiaries, holding companies, or fellow subsidiaries participated in any arrangements enabling directors to acquire benefits by purchasing shares or debentures of the company or any other body corporate - At no time during the review period did the company, its subsidiaries, holding company, or fellow subsidiaries participate in any arrangements enabling directors to acquire benefits by purchasing shares or debentures of the company or any other body corporate[152](index=152&type=chunk)[154](index=154&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in the Shares and Underlying Shares of the Company](index=45&type=section&id=Substantial%20Shareholders'%20and%20Other%20Persons'%20Interests%20and%20Short%20Positions%20in%20the%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) As of June 30, 2025, Central Huijin Investment Ltd., China Everbright Group Co., Ltd., China Everbright Group Ltd., Guildford Limited, Everbright Environment, and China Everbright Water Holdings Limited were all deemed to hold 72.87% of the company's shares Substantial Shareholders' Long Positions in the Company's Shares (as of June 30, 2025) | Name of Substantial Shareholder | Capacity | Nature of Interest | Number of Shares Held (Ordinary Shares) | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | :--- | | Central Huijin Investment Ltd. | Interest in controlled corporations | Corporate interest | 2,084,724,572 | 72.87% | | China Everbright Group Co., Ltd. | Interest in controlled corporations | Corporate interest | 2,084,724,572 | 72.87% | | China Everbright Group Ltd. | Interest in controlled corporations | Corporate interest | 2,084,724,572 | 72.87% | | Guildford Limited | Interest in controlled corporations | Corporate interest | 2,084,724,572 | 72.87% | | Everbright Environment | Interest in controlled corporations | Corporate interest | 2,084,724,572 | 72.87% | | China Everbright Water Holdings Limited | Beneficial owner | Corporate interest | 2,084,724,572 | 72.87% | - The aforementioned substantial shareholders are ultimately controlled by **Central Huijin Investment Ltd.**, which is indirectly wholly owned by the State Council of China, through a multi-layered holding structure[164](index=164&type=chunk) [Share Scheme](index=47&type=section&id=Share%20Scheme) The company did not have any share schemes in place during the review period - The company had no share schemes during the review period[162](index=162&type=chunk)[163](index=163&type=chunk) [Corporate Governance](index=48&type=section&id=Corporate%20Governance) This section outlines the company's commitment to high standards of corporate governance, its practices, and the roles of its Board committees [Corporate Governance Practices](index=48&type=section&id=Corporate%20Governance%20Practices) The company maintains sound corporate governance practices to enhance long-term value and shareholder returns, adhering to both Singapore and Hong Kong corporate governance codes, and complying with stricter provisions where conflicts arise - The company's corporate governance practices comply with the principles and provisions of the **2018 Code of Corporate Governance in Singapore** and the **Corporate Governance Code** set out in Appendix C1 of the HKEX Listing Rules[166](index=166&type=chunk)[168](index=168&type=chunk) - In case of any conflict between the Singapore Code of Corporate Governance and the Hong Kong Corporate Governance Code, the company will comply with the **stricter provisions**[166](index=166&type=chunk)[168](index=168&type=chunk) [Board Committees](index=49&type=section&id=Board%20Committees) The Board of Directors holds regular meetings and has established five committees—Audit, Remuneration, Nominating, Strategy, and Sustainability—each with clear terms of reference to ensure good corporate governance - The Board of Directors holds regular meetings (at least four times a year) and has established an Audit Committee, a Remuneration Committee, a Nominating Committee, a Strategy Committee, and a Sustainability Committee[169](index=169&type=chunk)[171](index=171&type=chunk) [Audit Committee](index=49&type=section&id=Audit%20Committee) The Audit Committee, composed of four independent non-executive directors, is responsible for reviewing financial reporting, the adequacy and effectiveness of internal control and risk management systems, and the independence and effectiveness of external auditors - The Audit Committee, comprising **four independent non-executive directors**, is responsible for reviewing significant financial reporting matters and judgments, and overseeing the integrity of the Group's financial statements[170](index=170&type=chunk)[174](index=174&type=chunk) - The committee reviews and reports to the Board on the adequacy and effectiveness of the Group's internal control and risk management systems, as well as the independence and objectivity of the external auditors[170](index=170&type=chunk)[174](index=174&type=chunk) [Remuneration Committee](index=50&type=section&id=Remuneration%20Committee) The Remuneration Committee, consisting of three independent non-executive directors, is responsible for determining the remuneration packages of directors and key management personnel, ensuring alignment with the Group's long-term interests and risk policies, and attracting, retaining, and motivating talent - The Remuneration Committee, comprising **three independent non-executive directors**, is responsible for determining the remuneration packages of each director and key management personnel through a formal, transparent, and objective process[175](index=175&type=chunk)[177](index=177&type=chunk) - The committee ensures that remuneration levels are consistent with the Group's long-term interests and risk policies, and are appropriate for attracting, retaining, and motivating talent[175](index=175&type=chunk)[177](index=177&type=chunk) [Nominating Committee](index=50&type=section&id=Nominating%20Committee) The Nominating Committee, composed of three independent non-executive directors and one non-executive director who is also the Chairman, is responsible for implementing the appointment and re-election procedures for Board members and evaluating the overall performance of the Board and its committees - The Nominating Committee comprises **three independent non-executive directors** and Mr. Luan Zusheng, the Non-Executive Director and Chairman[176](index=176&type=chunk)[178](index=178&type=chunk) - The committee is responsible for implementing formal and transparent procedures for the appointment and re-election of Board members, and for evaluating the performance of individual Board members, Board committee members, and the overall performance of the Board and Board committees[176](index=176&type=chunk)[178](index=178&type=chunk) [Strategy Committee](index=51&type=section&id=Strategy%20Committee) The Strategy Committee, comprising the Chairman, two executive directors, and two independent non-executive directors, is primarily responsible for assisting the Board in providing strategic direction, overseeing the Group's strategic plans and implementation, and reviewing management's proposed medium- and long-term strategic objectives - The Strategy Committee comprises Mr. Luan Zusheng (Chairman), Mr. Xiong Jianping and Mr. Wang Yuexing (Executive Directors), and Ms. Hao Gang and Mr. Wong Yue Hiong (Independent Non-Executive Directors)[179](index=179&type=chunk)[181](index=181&type=chunk) - The committee's primary responsibilities include assisting the Board in providing strategic direction to the Group, overseeing the Group's strategic plans and implementation, and reviewing management's proposed medium- and long-term strategic objectives[179](index=179&type=chunk)[181](index=181&type=chunk) [Sustainability Committee](index=51&type=section&id=Sustainability%20Committee) The Sustainability Committee, composed of the Executive Director and President and three independent non-executive directors, is responsible for overseeing the management of ESG matters and evaluating issues and risks related to the Group's sustainable development and ESG - The Sustainability Committee comprises Mr. Xiong Jianping (Executive Director and President), and Ms. Hao Gang, Mr. Wong Yue Hiong, and Ms. Chan Pui Shan (Independent Non-Executive Directors)[180](index=180&type=chunk)[182](index=182&type=chunk) - The committee's primary responsibilities include overseeing the management of ESG matters, evaluating issues and risks related to the Group's sustainable development and ESG, and making recommendations to the Board[180](index=180&type=chunk)[182](index=182&type=chunk) [Dealings in the Securities](index=52&type=section&id=Dealings%20in%20the%20Securities) The company has adopted an internal code of conduct to regulate securities dealings by directors, officers, and relevant employees, in compliance with HKEX and SGX listing rules, prohibiting trading when possessing unpublished price-sensitive information and during specific blackout periods - The company has adopted an internal code of conduct to regulate securities dealings by directors, officers, and relevant employees who may possess unpublished price-sensitive information[183](index=183&type=chunk)[184](index=184&type=chunk) - This code complies with the HKEX Listing Rules and the Hong Kong Corporate Governance Code, as well as the SGX Listing Manual and the Singapore Code of Corporate Governance[183](index=183&type=chunk)[184](index=184&type=chunk) - Directors, officers, and relevant employees are prohibited from dealing in the company's securities **30 days prior to the announcement of interim results** and **60 days prior to the announcement of annual results**[185](index=185&type=chunk) [Other Information](index=54&type=section&id=Other%20Information) This section provides additional disclosures including changes in directors' information, interim dividend details, book closure dates, and review of interim financial information [Changes in Directors' Information](index=54&type=section&id=Changes%20in%20Directors'%20Information) In accordance with HKEX Listing Rules, Ms. Hao Gang, an independent non-executive director, ceased to serve as Associate Dean (China Executive Programs and Outreach) of the College of Business at City University of Hong Kong effective August 1, 2025 - Ms. Hao Gang, an independent non-executive director of the company, ceased to serve as Associate Dean (China Executive Programs and Outreach) of the College of Business at City University of Hong Kong effective **August 1, 2025**[189](index=189&type=chunk)[193](index=193&type=chunk) [Interim Dividend](index=54&type=section&id=Interim%20Dividend) The Board announced an interim dividend of 6.09 HK cents per ordinary share for 1HFY2025, consistent with the prior year, with payment expected on or about September 12, 2025 - The Board announced an interim dividend of **6.09 HK cents** (equivalent to **0.99 S$ cents**) per ordinary share for 1HFY2025, consistent with 1HFY2024[191](index=191&type=chunk)[194](index=194&type=chunk) - The 1HFY2025 interim dividend is expected to be paid on or about **Friday, September 12, 2025**[192](index=192&type=chunk)[194](index=194&type=chunk) [Books Closure Date(s)](index=55&type=section&id=Books%20Closure%20Date(s)) To determine eligibility for the 1HFY2025 interim dividend, the Singapore share transfer books will close at 5:00 PM on August 28, 2025, and the Hong Kong branch share register will be closed from August 29 to September 1, 2025 - The Singapore share transfer books will be closed at **5:00 PM (Singapore time) on Thursday, August 28, 2025**[195](index=195&type=chunk)[197](index=197&type=chunk) - The Hong Kong branch share register will be closed from **Friday, August 29, 2025, to Monday, September 1, 2025** (both days inclusive), during which no share transfers will be registered[198](index=198&type=chunk)[201](index=201&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=56&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Listed%20Securities) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of its listed securities, and the company held no subsidiary-held shares - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of its listed securities[200](index=200&type=chunk)[202](index=202&type=chunk) - As of June 30, 2025, the company held no subsidiary-held shares[200](index=200&type=chunk)[202](index=202&type=chunk) [Review of Interim Financial Information](index=57&type=section&id=Review%20of%20Interim%20Financial%20Information) The Audit Committee has reviewed the company's unaudited financial statements and interim report for 1HFY2025, including the accounting principles and practices adopted - The Audit Committee has reviewed the company's unaudited financial statements and interim report for 1HFY2025, including the accounting principles and practices adopted by the company[203](index=203&type=chunk) [Interim Financial Report](index=58&type=section&id=Interim%20Financial%20Report) This section presents the company's condensed consolidated interim financial statements, including the statement of comprehensive income, financial position, changes in equity, cash flows, and detailed notes to the financial information [Condensed Consolidated Statement of Comprehensive Income](index=58&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) In 1HFY2025, the company's revenue decreased by 2% year-on-year, but gross profit increased by 8%, while profit attributable to equity holders decreased by 3%, and basic earnings per share were 19.71 HK cents, with other comprehensive income primarily affected by exchange differences Condensed Consolidated Statement of Comprehensive Income Summary | Indicator | 1HFY2025 (Thousand HKD) | 1HFY2024 (Thousand HKD) | | :--- | :--- | :--- | | Revenue | 3,279,565 | 3,352,595 | | Gross Profit | 1,369,235 | 1,269,233 | | Profit Before Tax | 832,211 | 815,307 | | Profit for the Period | 625,324 | 627,568 | | Profit Attributable to Equity Holders of the Company | 563,760 | 581,146 | | Other Comprehensive Income/(Loss) for the Period | 408,463 | (157,099) | | Total Comprehensive Income for the Period | 1,033,787 | 470,469 | | Basic Earnings Per Share (HK cents) | 19.71 | 20.31 | [Condensed Consolidated Statement of Financial Position](index=61&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets increased to HKD 38.213 billion, with contract assets representing the largest portion, while net assets stood at HKD 14.822 billion, and the gearing ratio was 61.2% Condensed Consolidated Statement of Financial Position Summary | Indicator | June 30, 2025 (Thousand HKD) | December 31, 2024 (Thousand HKD) | | :--- | :--- | :--- | | Total Non-Current Assets | 27,121,929 | 25,931,236 | | Total Current Assets | 11,090,917 | 9,958,126 | | Total Assets | 38,212,846 | 35,889,362 | | Total Current Liabilities | 7,544,712 | 7,521,411 | | Total Non-Current Liabilities | 15,846,545 | 14,376,273 | | Total Liabilities | 23,391,257 | 21,897,684 | | Total Equity | 14,821,589 | 13,991,678 | | Equity Attributable to Equity Holders of the Company | 12,614,517 | 11,835,120 | - As of June 30, 2025, contract assets (non-current and current) totaled **HKD 23.808 billion**, accounting for **62.3% of total assets**[218](index=218&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=64&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) In 1HFY2025, total comprehensive income attributable to equity holders of the company was HKD 946 million, primarily influenced by profit for the period and foreign currency translation differences, with perpetual capital instruments issued and partially redeemed during the period Condensed Consolidated Statement of Changes in Equity Summary (Attributable to Equity Holders of the Company) | Indicator | 1HFY2025 (Thousand HKD) | 1HFY2024 (Thousand HKD) | | :--- | :--- | :--- | | Equity at Beginning of Period | 11,835,120 | 11,406,121 | | Profit for the Period | 563,760 | 581,146 | | Foreign Currency Translation Differences | 382,460 | (145,236) | | Total Comprehensive Income for the Period | 946,220 | 435,910 | | Final Dividends Declared | (166,823) | (165,424) | | Issuance of Perpetual Capital Instruments | 755,686 | – | | Redemption of Perpetual Capital Instruments | (806,982) | – | | Equity at End of Period | 12,614,517 | 11,676,607 | [Condensed Consolidated Statement of Cash Flows](index=68&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) In 1HFY2025, net cash flow from operating activities was HKD 132 million, net cash outflow from investing activities was HKD 174 million, and net cash inflow from financing activities was HKD 41 million, resulting in a net decrease of HKD 0.947 million in cash and cash equivalents Condensed Consolidated Statement of Cash Flows Summary | Activity Category | 1HFY2025 (Thousand HKD) | 1HFY2024 (Thousand HKD) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 131,710 | (422,256) | | Net Cash Flow from Investing Activities | (173,546) | 14,292 | | Net Cash Flow from Financing Activities | 40,889 | 382,787 | | Net Decrease in Cash and Cash Equivalents | (947) | (25,177) | | Cash and Cash Equivalents at End of Period | 1,865,021 | 1,813,216 | - In financing activities, proceeds from the issuance of medium-term notes amounted to **HKD 2.678 billion**, and proceeds from the issuance of perpetual capital instruments were **HKD 758 million**, while **HKD 807 million** of perpetual capital instruments were repaid[248](index=248&type=chunk) [Notes to Interim Condensed Consolidated Financial Information](index=72&type=section&id=Notes%20to%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes to the interim condensed consolidated financial information, covering company information, accounting policies, operating segments, revenue, other income, finance costs, profit before tax, income tax, dividends, earnings per share, contract assets, trade and other receivables, other financial assets, cash and cash equivalents, trade and other payables, share capital, perpetual capital instruments, commitments, related party transactions, fair value of financial instruments, subsequent events, comparative figures, and authorization for issue [Corporate Information (Notes)](index=72&type=section&id=Corporate%20Information%20(Notes)) The company is a limited company incorporated in Bermuda, dual-listed on the SGX and HKEX main boards, primarily engaged in investment holding, with its subsidiaries mainly involved in China's water environment management business, and its ultimate controlling entity being China Investment Corporation - The company is a limited company incorporated in Bermuda and is dual-listed on the main boards of the Singapore Exchange Securities Trading Limited and The Stock Exchange of Hong Kong Limited[255](index=255&type=chunk)[258](index=258&type=chunk) - The company's subsidiaries are primarily involved in China's water environment management business, and its ultimate controlling entity is **China Investment Corporation**[256](index=256&type=chunk)[257](index=257&type=chunk)[258](index=258&type=chunk) [Summary of Material Accounting Policies](index=73&type=section&id=Summary%20of%20Material%20Accounting%20Policies) The interim financial information is prepared in accordance with IAS 34, with accounting policies consistent with the 2024 annual financial statements, and the adoption of new and amended IFRS effective January 1, 2025, had no material impact on results or financial position - The unaudited interim financial information has been prepared in accordance with **International Accounting Standard 34 "Interim Financial Reporting"** issued by the International Accounting Standards Board[261](index=261&type=chunk)[265](index=265&type=chunk) - The adoption of the amended IAS 21 "Lack of Exchangeability" had no material impact on the preparation and presentation of the results and financial position for the current or prior accounting periods[271](index=271&type=chunk)[274](index=274&type=chunk) [Operating Segment Information](index=77&type=section&id=Operating%20Segment%20Information) The company operates in a single business segment, water environment management, which includes municipal wastewater treatment, industrial wastewater treatment, and water supply, with revenue and non-current assets primarily located in mainland China, and local government agencies as its main customers - The company operates in a single business segment, water environment management, which includes municipal wastewater treatment, industrial wastewater treatment, water supply, reclaimed water reuse, sludge treatment and disposal, sponge city construction, river basin management, livestock and poultry waste resource utilization, and water environment technology research and development and engineering construction[279](index=279&type=chunk)[280](index=280&type=chunk)[282](index=282&type=chunk) Revenue from External Customers (by Geographical Location) | Geographical Location | 1HFY2025 (Thousand HKD) | 1HFY2024 (Thousand HKD) | | :--- | :--- | :--- | | Mainland China | 3,276,626 | 3,339,163 | | Germany | 2,939 | 13,432 | | Total | 3,279,565 | 3,352,595 | - The main customers are local government agencies[291](index=291&type=chunk) [Revenue (Notes)](index=80&type=section&id=Revenue%20(Notes)) In 1HFY2025, the company's total revenue was HKD 3.28 billion, with an increase in operating revenue but a decrease in construction service revenue and equipment sales and technical service revenue, while finance income from service concession arrangements slightly decreased Revenue Composition (1HFY2025) | Revenue Source | 1HFY2025 (Thousand HKD) | 1HFY2024 (Thousand HKD) | | :--- | :--- | :--- | | Construction Service Revenue | 1,164,178 | 1,355,412 | | Operating Revenue | 1,476,891 | 1,301,259 | | Equipment Sales and Technical Service Revenue | 79,684 | 131,597 | | Finance Income from Service Concession Arrangements | 558,812 | 564,327 | | Total Revenue | 3,279,565 | 3,352,595 | - Total construction service revenue, finance income, and operating revenue from service concession arrangements with local government agencies in China amounted to **HKD 3,121,222,000**[294](index=294&type=chunk) [Other Income and Gains, Net](index=81&type=se

Company Information [Company Overview](index=1&type=section&id=Company%20Overview) Sany Heavy Equipment International Holdings Company Limited announced its unaudited condensed consolidated interim results for the six months ended June 30, 2025 - Sany Heavy Equipment International Holdings Company Limited announced its unaudited condensed consolidated interim results for the six months ended June 30, 2025[2](index=2&type=chunk) [Company Details](index=6&type=section&id=Company%20Details) The company, incorporated in the Cayman Islands, primarily manufactures and sells mining, logistics, oil, and new energy equipment in mainland China - The company was incorporated in the Cayman Islands on July 23, 2009, primarily engaged in manufacturing and selling mining equipment, logistics equipment, oil equipment, new energy manufacturing equipment, electric power, lithium batteries, energy storage systems, and accessories, and providing related services in mainland China[8](index=8&type=chunk) - The company's direct holding company is Sany Hong Kong Group Co., Ltd., and its ultimate holding company is Sany Heavy Equipment Investment Co., Ltd[8](index=8&type=chunk) Financial Highlights [Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) For the six months ended June 30, 2025, the Group's revenue increased by 13.8% year-on-year to RMB 12,236.6 million, with profit before tax margin rising 3.3 percentage points to 14.0% 2025 H1 Key Financial Data | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | YoY Growth/Change | | :--- | :--- | :--- | :--- | | Revenue | 12,236.6 | 10,756.1 | +13.8% | | Profit before tax margin | 14.0% | 10.7% | +3.3 percentage points | | Profit for the period | 1,294.2 | 987.0 | +31.1% | | Profit attributable to owners of the parent | 1,294.4 | 1,032.7 | +25.3% | | Basic earnings per share | 0.39 RMB | - | - | Condensed Consolidated Interim Financial Statements [Condensed Consolidated Interim Income Statement](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Income%20Statement) For the six months ended June 30, 2025, the Group reported revenue of RMB 12,236.6 million, gross profit of RMB 2,898.7 million, and profit attributable to owners of the parent of RMB 1,294.4 million Condensed Consolidated Interim Income Statement (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 12,236,558 | 10,756,056 | | Cost of sales | (9,337,876) | (8,130,487) | | Gross profit | 2,898,682 | 2,625,569 | | Other income and gains | 594,104 | 368,568 | | Selling and distribution costs | (576,305) | (563,037) | | Administrative expenses | (985,711) | (1,108,543) | | Net impairment losses on financial and contract assets | (93,846) | (54,159) | | Finance costs | (122,046) | (113,330) | | Profit before tax | 1,707,237 | 1,152,535 | | Income tax expense | (413,064) | (165,580) | | Profit for the period | 1,294,173 | 986,955 | | Profit attributable to owners of the parent | 1,294,383 | 1,032,749 | | Basic earnings per share (RMB) | 0.39 | 0.31 | [Condensed Consolidated Interim Statement of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's profit for the period was RMB 1,294.2 million, with total comprehensive income of RMB 1,252.6 million primarily due to exchange differences Condensed Consolidated Interim Statement of Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the period | 1,294,173 | 986,955 | | Exchange differences on translation of financial statements | (41,553) | (3,548) | | Total comprehensive income for the period | 1,252,620 | 983,407 | | Attributable to owners of the parent | 1,252,830 | 1,029,201 | [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 non-current assets were RMB 15,084.9 million, total current assets were RMB 28,553.6 million, and total equity was RMB 12,510.0 million Condensed Consolidated Interim Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total non-current assets | 15,084,891 | 14,700,627 | | Total current assets | 28,553,556 | 26,227,101 | | Total current liabilities | 23,103,840 | 21,209,793 | | Net current assets | 5,449,716 | 5,017,308 | | Total non-current liabilities | 8,024,575 | 7,542,675 | | Net assets | 12,510,032 | 12,175,260 | | Total equity | 12,510,032 | 12,175,260 | Notes to the Condensed Consolidated Interim Financial Information [Basis of Preparation and Changes in Accounting Policies](index=6&type=section&id=Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies) The interim financial information is prepared in accordance with IAS 34 and presented in RMB, with no significant impact from newly adopted IFRS amendments - The condensed consolidated interim financial information is prepared in accordance with International Accounting Standard 34 Interim Financial Reporting and presented in RMB[9](index=9&type=chunk) - The revised International Financial Reporting Standards (IFRS) accounting standards (amendment to IAS 21 Lack of Exchangeability) adopted for the first time in the current period did not have a significant impact on the condensed consolidated interim financial information[10](index=10&type=chunk)[11](index=11&type=chunk) [Operating Segment Information](index=7&type=section&id=Operating%20Segment%20Information) The Group operates in four reportable segments: mining equipment, logistics equipment, oil and gas equipment, and emerging industry equipment, with emerging industry equipment showing significant revenue growth - The Group's four reportable operating segments are: mining equipment, logistics equipment, oil and gas equipment, and emerging industry equipment[12](index=12&type=chunk) Segment Revenue (For the six months ended June 30) | Segment | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Mining equipment | 4,636,791 | 5,938,343 | | Logistics equipment | 3,680,398 | 3,282,225 | | Oil and gas equipment | 1,324,966 | 845,853 | | Emerging industry equipment | 2,594,403 | 689,635 | | Total | 12,236,558 | 10,756,056 | - Sales revenue from fellow subsidiaries for the six months ended June 30, 2025, was approximately **RMB 2,487.3 million**, a significant increase from RMB 1,269.5 million in the same period of 2024[18](index=18&type=chunk) [Revenue, Other Income and Gains](index=11&type=section&id=Revenue%2C%20Other%20Income%20and%20Gains) For the six months ended June 30, 2025, the Group's revenue from contracts with customers was RMB 12,236.6 million, primarily from industrial product sales in mainland China, with other income and gains increasing significantly Revenue from Contracts with Customers (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue from contracts with customers | 12,236,558 | 10,756,056 | Revenue by Type of Goods or Services (For the six months ended June 30) | Type of goods or services | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Sale of industrial products | 11,198,732 | 10,519,113 | | Construction services | 584,109 | — | | Oilfield services | 276,105 | 24,340 | | Maintenance services and others | 126,525 | 174,427 | Other Income and Gains (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank interest income | 118,623 | 59,234 | | Government grants | 293,842 | 170,929 | | Net exchange differences | 45,859 | 4,479 | | Net fair value gains | 59,574 | 57,752 | | Total other income and gains | 594,104 | 368,568 | [Profit Before Tax](index=14&type=section&id=Profit%20Before%20Tax) The Group's profit before tax is derived after deducting various expenses such as cost of inventories sold, service costs, depreciation, R&D costs, and employee benefits, while including net exchange differences and fair value gains Items Deducted/Included in Profit Before Tax (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of inventories sold | 8,919,939 | 7,970,054 | | Cost of services provided | 330,587 | 128,164 | | Depreciation of property, plant and equipment | 394,051 | 289,924 | | Research and development costs | 701,742 | 813,063 | | Total employee benefit expenses | 1,162,962 | 1,272,542 | | Net impairment of financial and contract assets | 93,846 | 54,159 | | Net fair value gains | (59,574) | (57,752) | [Finance Costs](index=15&type=section&id=Finance%20Costs) For the six months ended June 30, 2025, the Group's finance costs totaled RMB 122.0 million, primarily consisting of interest on interest-bearing bank and other borrowings Finance Costs (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on interest-bearing bank and other borrowings | 115,226 | 102,287 | | Interest on discounted bills | 5,407 | 9,812 | | Interest on lease liabilities | 1,413 | 1,231 | | Total | 122,046 | 113,330 | [Income Tax](index=15&type=section&id=Income%20Tax) The Group's income tax expense was RMB 413.1 million, with an effective tax rate of approximately 24.2%, reflecting varying tax rates for Hong Kong and mainland China operations, including preferential rates for high-tech enterprises - Hong Kong profits tax is provided at **8.25% to 16.5%**, while mainland China operating companies are subject to a 25% corporate income tax rate[27](index=27&type=chunk) - Eleven major operating companies (including Sany Heavy Equipment, Sany Marine Heavy Industry, etc.) are recognized as high-tech enterprises and are subject to a preferential corporate income tax rate of **15%**[29](index=29&type=chunk) Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current — Hong Kong | 127,221 | 35,781 | | Current — Mainland China | 215,100 | 164,926 | | Deferred | 42,288 | (19,518) | | Total tax expense for the period | 413,064 | 165,580 | [Dividends](index=16&type=section&id=Dividends) Shareholders approved a final dividend of HKD 0.29 per share for the year ended December 31, 2024, totaling approximately RMB 983.7 million, with no interim dividend proposed for H1 2025 - Shareholders approved a final dividend of **HKD 0.29 per share** for the year ended December 31, 2024, totaling approximately **RMB 983.7 million**[31](index=31&type=chunk) - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[32](index=32&type=chunk) [Earnings Per Share Attributable to Ordinary Equity Holders of the Parent](index=17&type=section&id=Earnings%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Parent) For the six months ended June 30, 2025, basic earnings per share were RMB 0.39 and diluted earnings per share were RMB 0.35, both showing an increase from the prior year Earnings Per Share (For the six months ended June 30) | Indicator | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Basic earnings per share | 0.39 | 0.31 | | Diluted earnings per share | 0.35 | 0.28 | - Basic earnings per share are calculated based on profit attributable to ordinary equity holders of the parent of **RMB 1,294.4 million** and a weighted average of **3,219.5 million** ordinary shares outstanding[34](index=34&type=chunk) - Diluted earnings per share calculation considers the potential dilutive effect of share options and convertible preference shares converting into ordinary shares[35](index=35&type=chunk) [Property, Plant and Equipment](index=17&type=section&id=Property%2C%20Plant%20and%20Equipment) As of June 30, 2025, the carrying amount of property, plant and equipment was RMB 8,185.1 million, with additions of RMB 645.5 million and depreciation of RMB 394.1 million during the period Changes in Property, Plant and Equipment (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Carrying amount at January 1 | 7,989,762 | 7,275,832 | | Additions | 645,513 | 1,229,866 | | Depreciation for the period/year | (394,051) | (548,985) | | Carrying amount at June 30/December 31 | 8,185,096 | 7,989,762 | [Trade and Bills Receivables](index=18&type=section&id=Trade%20and%20Bills%20Receivables) As of June 30, 2025, net trade receivables were RMB 13,041.6 million and bills receivables were RMB 755.2 million, with an impairment provision of RMB 798.7 million for trade receivables Trade and Bills Receivables (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables (gross) | 13,840,233 | 11,692,009 | | Impairment | (798,661) | (718,022) | | Trade receivables (net) | 13,041,572 | 10,973,987 | | Bills receivables | 755,191 | 1,131,661 | Ageing Analysis of Trade Receivables (As of June 30) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 180 days | 8,850,894 | 7,447,691 | | 181 to 365 days | 2,665,291 | 2,242,741 | | 1 to 2 years | 1,358,170 | 1,142,848 | - The Group endorsed bills receivables with a carrying amount of **RMB 567.1 million** to suppliers to settle trade payables and continued to recognize them, as it retained substantially all risks and rewards[41](index=41&type=chunk) - The Group endorsed bills receivables with a carrying amount of **RMB 947.7 million** to suppliers and derecognized them, as substantially all risks and rewards were transferred[42](index=42&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=20&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, the Group's total financial assets at fair value through profit or loss amounted to RMB 2,069.4 million, primarily wealth management products issued by Chinese banks Financial Assets at Fair Value Through Profit or Loss (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current | 1,966,880 | 2,393,996 | | Non-current | 102,500 | 57,500 | | Total | 2,069,380 | 2,451,496 | - Unlisted investments primarily consist of wealth management products issued by banks and other financial institutions in mainland China, and investments in limited liability partnerships and companies[43](index=43&type=chunk) [Trade and Bills Payables](index=21&type=section&id=Trade%20and%20Bills%20Payables) As of June 30, 2025, the Group's total trade and bills payables were RMB 12,051.1 million, with the largest portion due within 30 days, and RMB 914.6 million owed to fellow subsidiaries Ageing Analysis of Trade and Bills Payables (As of June 30) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 30 days | 6,556,471 | 5,776,501 | | 31 to 90 days | 3,860,448 | 1,572,728 | | 91 to 180 days | 1,306,412 | 3,245,574 | | Total | 12,051,100 | 11,213,230 | - Trade and bills payables include amounts due to fellow subsidiaries of **RMB 914.6 million**[45](index=45&type=chunk) [Interest-Bearing Bank and Other Borrowings](index=22&type=section&id=Interest-Bearing%20Bank%20and%20Other%20Borrowings) As of June 30, 2025, the Group's total interest-bearing bank and other borrowings were RMB 10,889.5 million, with varying interest rates and some borrowings secured by leased land or power charges Interest-Bearing Bank and Other Borrowings (As of June 30) | Type | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total current borrowings | 4,612,267 | 4,250,167 | | Total non-current borrowings | 6,277,202 | 5,684,432 | | Total | 10,889,469 | 9,934,599 | - Secured bank and other borrowings bear interest at annual rates ranging from **1.77% to 3.98%**, while unsecured borrowings bear interest at **1.75% to 4.35%**[46](index=46&type=chunk) - Some bank loans are secured by the Group's leased land and power charge pledges, and Sany Group Co., Ltd. provides guarantees for certain bank loans[48](index=48&type=chunk) [Government Grants](index=23&type=section&id=Government%20Grants) As of June 30, 2025, the Group's total government grants were RMB 1,683.2 million, with RMB 293.8 million transferred to the income statement during the period, primarily for property, plant, equipment, or R&D projects Government Grants (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | At January 1 | 1,765,642 | 1,916,665 | | Received during the period/year | 198,778 | 257,888 | | Transferred to income statement during the period/year | (293,842) | (425,668) | | At June 30/December 31 | 1,683,160 | 1,765,642 | - Government grants are primarily used for certain projects involving the purchase of property, plant and equipment or for research and development project funding[47](index=47&type=chunk) [Share Capital](index=24&type=section&id=Share%20Capital) As of June 30, 2025, the company's total issued and fully paid share capital was RMB 318.9 million, including ordinary and convertible preference shares, with 16,813,599 new ordinary shares issued for share awards Issued and Fully Paid Share Capital (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total issued and fully paid share capital | 318,941 | 317,394 | - For the six months ended June 30, 2025, the company issued **16,813,599 new ordinary shares** for share awards[50](index=50&type=chunk) - Convertible preference shares are convertible into ordinary shares of the company at any time and have the same rights as ordinary shares to receive declared dividends[49](index=49&type=chunk) [Commitments](index=25&type=section&id=Commitments) As of June 30, 2025, the Group's capital commitments amounted to approximately RMB 1,186.7 million, primarily for buildings, plant, and machinery Capital Commitments (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Buildings | 349,296 | 432,905 | | Plant and machinery | 837,404 | 772,588 | | Total | 1,186,700 | 1,205,493 | Business Review [Principal Products](index=26&type=section&id=Principal%20Products) The Group's products are categorized into four segments: mining equipment, logistics equipment, oil and gas equipment, and emerging industries, covering a wide range of specialized machinery and new energy solutions - The Group's products are divided into four major segments: mining equipment, logistics equipment, oil and gas equipment, and emerging industries[53](index=53&type=chunk) - Mining equipment includes roadheader equipment, coal mining equipment, engineering tunnel boring machines, mining transportation vehicles, and smart mining operation systems[53](index=53&type=chunk) - Emerging industries include solar modules, hydrogen production equipment, power battery modules, and energy storage systems[53](index=53&type=chunk) [Overall Business Performance](index=26&type=section&id=Overall%20Business%20Performance) In H1 2025, the Group achieved revenue of RMB 12,236.6 million, a 13.8% year-on-year increase, and profit for the period of RMB 1,294.2 million, up 31.1%, driven by global, digital, and low-carbon strategies - The Group continued to implement its globalization, digitalization, and low-carbon operation strategies, achieving steady business development[54](index=54&type=chunk) Overall Business Performance (2025 H1) | Indicator | 2025 H1 (RMB million) | YoY Growth | | :--- | :--- | :--- | | Revenue | 12,236.6 | +13.8% | | Profit for the period | 1,294.2 | +31.1% | | Profit attributable to shareholders | 1,294.4 | +25.3% | | International revenue | 4,018.9 | +5.4% | - The rapidly developing second curve created by emerging industries has become a new profit growth point[54](index=54&type=chunk) [Financial Performance Analysis](index=27&type=section&id=Financial%20Performance%20Analysis) The Group's H1 2025 revenue grew by 13.8% due to global strategy, increased sales in key segments, and acquisitions, leading to a 3.3 percentage point rise in profit before tax margin despite a slight decrease in gross margin - Revenue increase was primarily due to the deep implementation of globalization, digitalization, and low-carbon strategies, leading to significant increases in revenue from large port machinery, oil and gas equipment, emerging industries, and overseas mining vehicles, as well as new revenue streams from the acquisition of lithium energy business[55](index=55&type=chunk) - Other income and gains increased by **61.2%** to **RMB 594.1 million**, mainly due to increased government grants and bank interest income[56](index=56&type=chunk) - Gross margin decreased by **0.7 percentage points** to **23.7%**, primarily due to an increased proportion of sales revenue from products with relatively lower gross margins[58](index=58&type=chunk) - Research and development expenses decreased by **13.7%** to **RMB 701.7 million**, with its proportion to revenue decreasing by **1.9 percentage points** to **5.7%**, mainly due to changes in R&D system management and focus on core product R&D[61](index=61&type=chunk) - Profit before tax margin increased by **3.3 percentage points** to **14.0%**, mainly due to a decrease in the ratio of selling and distribution costs and administrative expenses to revenue, and an increase in other income[64](index=64&type=chunk) - Profit attributable to owners of the parent increased by **25.3%** to **RMB 1,294.4 million**[66](index=66&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the Group's total current assets were RMB 28,553.6 million, total current liabilities were RMB 23,103.8 million, and the asset-liability ratio was 63.5%, with positive operating cash flow and increased working capital days Asset and Liability Status (As of June 30) | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Total current assets | 28,553.6 | 26,227.1 | | Total current liabilities | 23,103.8 | 21,209.8 | | Total assets | 43,638.4 | 40,927.7 | | Total liabilities | 31,128.4 | 28,752.5 | | Asset-liability ratio | 63.5% | 63.2% | - Gross trade and bills receivables increased by **13.8%** to **RMB 14,595.4 million**, with trade receivables increasing by 18.4% and bills receivables decreasing by 33.3%[68](index=68&type=chunk) - Interest-bearing bank and other borrowings increased to **RMB 10,889.5 million**, mainly to meet the development needs of emerging industries and daily operations[69](index=69&type=chunk) Cash Flow (For the six months ended June 30) | Cash flow type | 2025 H1 (RMB million) | 2024 H1 (RMB million) | | :--- | :--- | :--- | | Net cash inflow from operating activities | 368.4 | (152.9) | | Net cash inflow from investing activities | 92.6 | (346.7) | | Net cash inflow from financing activities | 460.5 | 1,734.0 | - Average inventory turnover days increased by **24 days** to **106 days**, mainly due to increased inventory in emerging industries and increased overseas stock to ensure timely delivery to overseas markets[71](index=71&type=chunk) - Trade and bills receivables turnover days increased by **2 days** to **204 days**, mainly due to an increased proportion of revenue from products with relatively longer collection cycles[71](index=71&type=chunk) - Trade and bills payables turnover days increased by **40 days** to **228 days**, mainly due to the implementation of offline settlement and extended contract payment cycles[72](index=72&type=chunk) - Financial guarantee contracts have provisions of **RMB 20.7 million** for outstanding loans and lease amounts of **RMB 5,075.7 million**[73](index=73&type=chunk) [Employees and Remuneration Policy](index=31&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 7,843 full-time employees, with a focus on talent development and incentive programs including year-end bonuses, share option schemes, and equity award plans - As of June 30, 2025, the Group had **7,843 full-time employees**[75](index=75&type=chunk) - The Group motivates employees by providing training, year-end bonuses, and implementing share option schemes and equity award plans[75](index=75&type=chunk) [Significant Investments, Acquisitions and Disposals](index=31&type=section&id=Significant%20Investments%2C%20Acquisitions%20and%20Disposals) Sany Marine Heavy Industry (Hunan) and Sany Heavy Steel Structure agreed to sell certain tower assets to Sany Tower Technology for approximately RMB 52.9 million, with no other significant transactions during the reporting period - Sany Marine Heavy Industry (Hunan) and Sany Heavy Steel Structure have agreed to sell certain tower assets to Sany Tower Technology for a total consideration of approximately **RMB 52.9 million**[76](index=76&type=chunk) - For the six months ended June 30, 2025, there were no other significant investments held, nor any significant acquisitions or disposals of subsidiaries, associates, and joint ventures[77](index=77&type=chunk) [Pledged Assets](index=32&type=section&id=Pledged%20Assets) As of June 30, 2025, the Group's pledged bank deposits of approximately RMB 88.0 million were for bank acceptance bill guarantees, with leased land and power charge pledges securing bank loans - Pledged bank deposits of approximately **RMB 88.0 million** are used as guarantees for bank acceptance bills[79](index=79&type=chunk) - Leased land of approximately **RMB 677.4 million** and power charge pledges of approximately **RMB 64.6 million** are used to secure bank loans[79](index=79&type=chunk) [Foreign Exchange Risk](index=32&type=section&id=Foreign%20Exchange%20Risk) As of June 30, 2025, the Group held cash and bank balances denominated in foreign currencies, such as USD and EUR, equivalent to approximately RMB 4,296.7 million, and will monitor and consider hedging foreign exchange risk - The Group's cash and bank balances denominated in foreign currencies such as USD and EUR amounted to approximately **RMB 4,296.7 million**[80](index=80&type=chunk) - The Group will monitor the risks it is exposed to and will consider hedging significant currency risks when necessary[80](index=80&type=chunk) [Events After the Reporting Period](index=32&type=section&id=Events%20After%20the%20Reporting%20Period) As of the announcement date, there were no significant events for the Group after June 30, 2025 - There were no significant events for the Group after June 30, 2025, and up to the date of this announcement[81](index=81&type=chunk) Corporate Governance and Other Information [Social Responsibility](index=32&type=section&id=Social%20Responsibility) The Group actively practices corporate social responsibility, promotes low-carbon development, strengthens R&D capabilities, and implements globalization, digitalization, and low-carbon transformation strategies - The Group actively practices corporate social responsibility, is committed to promoting low-carbon development, and drives globalization, digitalization, and low-carbon transformation strategies by strengthening independent R&D capabilities[82](index=82&type=chunk) - Products such as the EBZ260H full-rock roadheader, upgraded electric heavy forklifts, and pure water hydraulic supports contribute to mine water protection and green transformation of the coal industry, and promote the deep transformation of industrial vehicles towards "intelligence, green, and scenario-based" development[82](index=82&type=chunk)[83](index=83&type=chunk) - The Group actively engages in industry and university-enterprise collaborations to explore innovative paths for AI-driven industrial intelligence[83](index=83&type=chunk) [Corporate Governance](index=33&type=section&id=Corporate%20Governance) The company is committed to establishing sound corporate governance practices, complying with the Corporate Governance Code in Appendix C1 of the Listing Rules, and ensuring business transparency to create shareholder value - The company is committed to establishing sound corporate governance practices and procedures to be accountable to shareholders with transparency and responsible institutions[84](index=84&type=chunk) - The company has adopted the Corporate Governance Code set out in Part 2 of Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and has complied with all applicable code provisions for the six months ended June 30, 2025[84](index=84&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=34&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted the Model Code in Appendix C3 of the Listing Rules as its code of conduct for directors' securities transactions, and all directors confirmed compliance - The company has adopted the Model Code set out in Appendix C3 to the Listing Rules as its own code of conduct for securities transactions[85](index=85&type=chunk) - All directors confirmed that they have complied with the required standards set out in the Model Code for the six months ended June 30, 2025[85](index=85&type=chunk) [Audit Committee](index=34&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors with Mr. Pan Zhaoguo as chairman, has reviewed the Group's unaudited interim financial statements for H1 2025 - The Audit Committee is composed of three independent non-executive directors, with Mr. Pan Zhaoguo as chairman[86](index=86&type=chunk) - The Audit Committee has held meetings to discuss audit, internal control, risk management, and financial reporting matters, and has reviewed the Group's unaudited interim financial statements for the six months ended June 30, 2025[86](index=86&type=chunk) [Review of Interim Financial Statements](index=34&type=section&id=Review%20of%20Interim%20Financial%20Statements) The Group's interim financial statements for the six months ended June 30, 2025, were not audited or reviewed by external auditors but were reviewed by the Audit Committee - The Group's interim financial statements for the six months ended June 30, 2025, have not been audited or reviewed by the company's external auditors[87](index=87&type=chunk) - The interim financial statements were reviewed by the Audit Committee before being recommended to the Board for approval[87](index=87&type=chunk) [Interim Dividend](index=34&type=section&id=Interim%20Dividend) The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025[88](index=88&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%27s%20Listed%20Securities) 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, and no treasury shares were held - 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[89](index=89&type=chunk) - As of June 30, 2025, the company did not hold any treasury shares[89](index=89&type=chunk) [Publication of Information on Websites](index=35&type=section&id=Publication%20of%20Information%20on%20Websites) This announcement is published on the HKEX and company websites, and the interim report will be available and dispatched to shareholders in due course - This announcement is published on the HKEX website www.hkexnews.hk and the company's website www.sanyhe.com[90](index=90&type=chunk) - The company's interim report for the six months ended June 30, 2025, will be available on the same websites and dispatched to shareholders in due course[90](index=90&type=chunk) [Board of Directors](index=35&type=section&id=Board%20of%20Directors) As of the announcement date, the Board comprises executive directors Mr. Liang Zaizhong, Mr. Qi Jian, and Mr. Fu Weizhong, non-executive directors Mr. Tang Xiuguo and Mr. Xiang Wenbo, and independent non-executive directors Mr. Pan Zhaoguo, Mr. Hu Jiquan, Mr. Yang Shuyong, and Ms. Zhou Lan - The executive directors are Mr. Liang Zaizhong, Mr. Qi Jian, and Mr. Fu Weizhong[92](index=92&type=chunk) - The non-executive directors are Mr. Tang Xiuguo and Mr. Xiang Wenbo[92](index=92&type=chunk) - The independent non-executive directors are Mr. Pan Zhaoguo, Mr. Hu Jiquan, Mr. Yang Shuyong, and Ms. Zhou Lan[92](index=92&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佈之內容概不負責，對其 準確性或完整性亦不發表聲明，並明確表示，概不對因本公佈全部或任何部份內容而產 生或因依賴該等內容而引致之任何損失承擔任何責任。 SEMICONDUCTOR MANUFACTURING INTERNATIONAL CORPORATION 中芯國際集成電路製造有限公司* （於開曼群島註冊成立之有限公司） （股份代號：00981） 2025年中期業績公告 中芯國際集成電路製造有限公司（「本公司」）董事會（「董事會」）謹此公佈本公司及其子 公司截至2025年6月30日止六個月的未經審計業績。本公告載有本公司2025年中期報告 （「2025年中期報告」）的全文，並已遵守有關香港聯合交易所有限公司（「香港聯交所」）證 券上市規則有關中期業績初步公告的資訊的規定。2025年中期報告將於適當的時候交付 給本公司要求印刷版的股東，並可在香港聯交所網站www.hkexnews.hk和本公司的網站 www.smics.com上進行查看。 承董事會命 中芯國際集成電路製造有限公司 公司秘書╱董事會秘書 郭光莉 中國上海，2025年8月28日 - 1 - 於 ...

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 分 內 容 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 Mediwelcome Healthcare Management & Technology Inc. 麥迪衛康健康醫療管理科技股份有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2159） 截 至2025年6月30日 止 六 個 月 中 期 業 績 公 告 麥 迪 衛 康 健 康 醫 療 管 理 科 技 股 份 有 限 公 司（「本 公 司」）董 事（「董 事」）會（「董 事 會」）欣 然 宣 佈 本 公 司 及 其 附 屬 公 司（統 稱「我 們」或「本 集 團」）截 至2025年 6月30日 止 六 個 月（「報 告 期」）的 未 經 審 核 綜 合 中 期 業 績，連 同2024年 同 期 的 比 較 數 ...

[Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) [Financial Summary](index=1&type=section&id=Financial%20Summary) The Group announced unaudited interim results for the six months ended June 30, 2025, with revenue increasing by **16.9%** year-on-year, gross profit significantly up by **50.1%**, but profit for the period decreased by **7.6%**, while adjusted net profit achieved a substantial growth of **97.7%** Financial Summary for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,063.5 | 2,620.6 | 16.9% | | Gross Profit | 666.9 | 444.3 | 50.1% | | Profit for the Period | 116.2 | 125.8 | (7.6%) | | Adjusted Net Profit | 294.3 | 148.9 | 97.7% | - Adjusted net profit, a non-IFRS measure, provides investors with additional information to better assess overall operating performance[3](index=3&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company saw revenue growth and significant gross profit improvement, but a substantial increase in fair value losses on financial assets led to a year-on-year decline in profit for the period and earnings per share Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 3,063,455 | 2,620,565 | | Cost of Sales | (2,396,584) | (2,176,281) | | Gross Profit | 666,871 | 444,284 | | Operating Profit | 310,188 | 164,025 | | Fair Value Changes of Financial Assets at FVTPL | (182,111) | (23,109) | | Profit Before Tax | 121,931 | 132,870 | | Profit and Total Comprehensive Income for the Period Attributable to Equity Holders of the Company | 116,226 | 125,761 | | Earnings Per Share (Basic and Diluted) | 0.11 | 0.12 | - Fair value changes of financial assets at fair value through profit or loss increased significantly from **RMB 23,109 thousand** in 2024 to **RMB 182,111 thousand** in 2025, primarily causing the decline in profit before tax and profit for the period[4](index=4&type=chunk) [Consolidated Statement of Financial Position](index=3&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets slightly decreased, mainly due to a reduction in financial assets at fair value through profit or loss, while current liabilities significantly declined, primarily from substantial bank loan repayments, maintaining stable net current assets and net assets Key Data from Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 1,791,446 | 1,930,960 | | Financial Assets at FVTPL | 440,727 | 615,055 | | Current Assets | 2,446,109 | 2,682,858 | | Inventories | 1,070,727 | 1,360,169 | | Cash and Bank Balances | 786,721 | 712,972 | | Current Liabilities | 680,249 | 980,303 | | Bank Loans | 200,074 | 645,475 | | Net Current Assets | 1,765,860 | 1,702,555 | | Net Assets | 3,495,819 | 3,554,770 | - Bank loans significantly decreased from **RMB 645,475 thousand** on December 31, 2024, to **RMB 200,074 thousand** on June 30, 2025, substantially improving the current liability position[5](index=5&type=chunk) [Notes to Interim Financial Information](index=5&type=section&id=Notes%20to%20Interim%20Financial%20Information) [Basis of Preparation](index=5&type=section&id=Basis%20of%20Preparation) The interim financial information is prepared in accordance with the Listing Rules of The Stock Exchange of Hong Kong Limited and International Accounting Standard 34 'Interim Financial Reporting', authorized for issue on August 28, 2025, and adopts the same accounting policies as the 2024 annual financial statements, except for anticipated changes in accounting policies - The interim financial information complies with the Listing Rules of the Hong Kong Stock Exchange and International Accounting Standard 34 requirements[7](index=7&type=chunk) - Except for anticipated changes in accounting policies, the same accounting policies as the 2024 annual financial statements are adopted[7](index=7&type=chunk) [Changes in Accounting Policies](index=5&type=section&id=Changes%20in%20Accounting%20Policies) The Group applied IAS 21 (Amendment) 'The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability', which had no material impact on the interim financial information due to the absence of relevant transactions, and no other new or amended standards not yet effective were applied during this accounting period - IAS 21 (Amendment) has been applied, but it has no material impact on the interim financial information[8](index=8&type=chunk) - No other new or amended standards not yet effective have been applied during this accounting period[9](index=9&type=chunk) [Revenue and Segment Reporting](index=6&type=section&id=Revenue%20and%20Segment%20Reporting) The Group's primary business involves the production and sale of staple kitchen foods, with all revenue recognized within the reporting period, segmented into four reportable product categories: rice, corn, miscellaneous grains, beans and other products, and dried goods and other products, with comparative segment information for 2024 restated - The Group's main business is the production and sale of staple kitchen foods, with all revenue recognized at a point in time within the reporting period[10](index=10&type=chunk) - The Group has presented four reportable segments: rice products, corn products, miscellaneous grains, beans and other products, and dried goods and other products[11](index=11&type=chunk)[13](index=13&type=chunk) - Corn product revenue has achieved significant growth since 2024, expected to contribute to stable cash flow generation and diversification of product matrix and revenue sources[12](index=12&type=chunk) [Segment Results](index=7&type=section&id=Segment%20Results) For the six months ended June 30, 2025, rice product revenue and gross profit both significantly increased, while corn product revenue and gross profit decreased, with miscellaneous grains, beans and other products, and dried goods and other products all showing growth in revenue and gross profit Segment Revenue and Gross Profit (RMB thousand) | Segment | 2025 Revenue | 2025 Gross Profit | 2024 Revenue | 2024 Gross Profit | | :--- | :--- | :--- | :--- | :--- | | Rice Products | 2,066,467 | 435,553 | 1,707,209 | 211,083 | | Corn Products | 433,069 | 156,635 | 514,221 | 171,142 | | Miscellaneous Grains, Beans and Other Products | 274,276 | 52,849 | 212,050 | 46,164 | | Dried Goods and Other Products | 289,643 | 21,834 | 187,085 | 15,895 | | **Total** | **3,063,455** | **666,871** | **2,620,565** | **444,284** | - Rice product revenue increased by **21.0%** year-on-year, with gross profit increasing by **106.3%** year-on-year[15](index=15&type=chunk) - Corn product revenue decreased by **15.8%** year-on-year, with gross profit decreasing by **8.5%** year-on-year[15](index=15&type=chunk) [Geographical Information](index=7&type=section&id=Geographical%20Information) All of the Group's revenue is derived from customers within mainland China, and it does not have significant assets or operations outside China, thus no segment analysis based on customer and asset geographical location is presented - All of the Group's revenue is derived from its customers in China[16](index=16&type=chunk) - The Group does not have significant assets or operations outside China[16](index=16&type=chunk) [Profit Before Tax](index=8&type=section&id=Profit%20Before%20Tax) Profit before tax is primarily influenced by finance costs, staff costs, cost of inventories, depreciation, and net loss on disposal of property, plant and equipment, with finance costs decreasing due to reduced bank loan interest, while staff costs and cost of inventories increased [Finance Costs](index=8&type=section&id=Finance%20Costs) The Group's finance costs decreased from **RMB 8,046 thousand** in the prior period of 2024 to **RMB 6,146 thousand** in 2025, mainly due to reduced bank loan interest expenses, though foreign exchange shifted from a gain to a loss Details of Finance Costs (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Interest expense on bank loans | 5,025 | 13,270 | | Interest on lease liabilities | 865 | 1,444 | | Foreign exchange loss / (gain) | 256 | (6,668) | | **Total** | **6,146** | **8,046** | - Interest expense on bank loans decreased by **62.1%** year-on-year[17](index=17&type=chunk) [Staff Costs](index=8&type=section&id=Staff%20Costs) The Group's staff costs increased from **RMB 153,952 thousand** in the prior period of 2024 to **RMB 164,084 thousand** in 2025, primarily driven by an increase in salaries, wages, and other benefits Details of Staff Costs (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Salaries, wages and other benefits | 153,655 | 144,004 | | Contributions to defined contribution retirement plans | 10,429 | 9,948 | | **Total** | **164,084** | **153,952** | [Other Items](index=8&type=section&id=Other%20Items) Other items primarily include cost of inventories, depreciation, net loss on disposal of property, plant and equipment, and lease expenses, with both cost of inventories and depreciation of owned property, plant and equipment increasing Details of Other Items (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Cost of inventories | 2,396,584 | 2,176,281 | | Depreciation – owned property, plant and equipment | 50,114 | 43,420 | | Depreciation – right-of-use assets | 4,601 | 5,915 | | Net loss on disposal of property, plant and equipment | 555 | 113 | | Lease expenses | 705 | 827 | [Income Tax](index=9&type=section&id=Income%20Tax) The Group's income tax expense decreased from **RMB 7,109 thousand** in the prior period of 2024 to **RMB 5,705 thousand** in 2025, mainly due to a reduction in taxable income, with primary processing of agricultural products qualifying for income tax exemption Income Tax Expense (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current tax | 5,705 | 7,109 | - Primary processing of agricultural products qualifies for income tax exemption[24](index=24&type=chunk) [Dividends](index=9&type=section&id=Dividends) The Board does not recommend an interim dividend for the six months ended June 30, 2025; however, the company approved a final dividend of **RMB 0.164** per ordinary share for the previous financial year during the interim period, a significant increase from the prior year - The Board does not recommend an interim dividend for the six months ended June 30, 2025[21](index=21&type=chunk) Dividends Payable to Equity Holders of the Company Approved and Attributable to the Previous Financial Year During the Interim Period (RMB thousand) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Final dividend for the previous financial year | 175,177 | 33,113 | [Earnings Per Share](index=9&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share decreased to **RMB 0.11** from **RMB 0.12** in the prior period, with diluted earnings per share being the same as basic earnings per share due to the absence of dilutive potential ordinary shares Earnings Per Share (RMB) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Basic earnings per share | 0.11 | 0.12 | | Diluted earnings per share | 0.11 | 0.12 | - Basic earnings per share is calculated based on profit attributable to equity holders of the Company of **RMB 116,226 thousand** and a weighted average of **1,068,153 thousand** ordinary shares outstanding[23](index=23&type=chunk) [Trade and Other Receivables](index=10&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables decreased to **RMB 559,672 thousand** from December 31, 2024, with trade receivables (net of loss allowance) predominantly within 3 months, indicating a healthy aging structure Trade and Other Receivables (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables (third parties) | 363,053 | 383,188 | | Less: Loss allowance | (887) | (5,763) | | Bills receivable | 7,989 | 8,789 | | Prepayments | 97,344 | 105,148 | | Recoverable VAT | 59,015 | 82,289 | | Other receivables | 87,708 | 110,317 | | **Total** | **559,672** | **609,717** | Aging Analysis of Trade Receivables (RMB thousand) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 months | 341,364 | 371,937 | | 4 to 6 months | 19,515 | 4,988 | | 7 to 12 months | 1,174 | 299 | | Over 1 year | 113 | 201 | | **Total** | **362,166** | **377,425** | [Trade and Other Payables](index=11&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables significantly increased to **RMB 434,253 thousand** from December 31, 2024, primarily due to a substantial rise in dividends payable Trade and Other Payables (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 159,781 | 152,677 | | Dividends payable | 175,177 | – | | Staff-related costs payable | 42,510 | 53,724 | | Amounts payable for construction and purchase of property, plant and equipment | 17,827 | 22,654 | | Others | 13,290 | 12,617 | | Financial liabilities measured at amortized cost | 408,585 | 241,672 | | Refund liabilities | 1,494 | 2,213 | | Miscellaneous taxes payable | 24,174 | 9,332 | | **Total** | **434,253** | **253,217** | - Dividends payable increased from **zero** on December 31, 2024, to **RMB 175,177 thousand** on June 30, 2025[27](index=27&type=chunk) - All trade payables are expected to be settled within one year or are repayable on demand[28](index=28&type=chunk) [Management Discussion and Analysis](index=13&type=section&id=Management%20Discussion%20and%20Analysis) [Macro and Industry Environment](index=13&type=section&id=Macro%20and%20Industry%20Environment) In H1 2025, China's GDP grew by **5.3%** year-on-year, total retail sales of consumer goods increased by **5%**, with final consumption expenditure contributing **52%** to economic growth, while the food industry shows trends towards health, quality, convenience, and brand, with pre-packaged food market share continuously expanding, supported by national policies for whole grain development and rising consumer health awareness driving growth in miscellaneous grains and corn categories - In H1 2025, China's GDP grew by **5.3%** year-on-year, with total retail sales of consumer goods reaching **RMB 24.55 trillion**, a **5%** year-on-year increase[29](index=29&type=chunk) - Final consumption expenditure contributed as much as **52%** to economic growth, becoming the main driver[29](index=29&type=chunk) - Food industry trends indicate consumers shifting from 'eating well' to 'eating healthy', preferring nutritionally balanced, low-fat, and fiber-rich foods; pre-packaged foods continue to gain market share due to stable quality and convenience[29](index=29&type=chunk)[32](index=32&type=chunk) - National policies support the development of the whole grain industry, and rising consumer health awareness drives growth in miscellaneous grains and corn categories[30](index=30&type=chunk) [Future Outlook](index=14&type=section&id=Future%20Outlook) The Group will continue to cultivate its omni-channel ecosystem, strengthen channel management, build a content-centric intelligent marketing ecosystem, continuously understand consumer needs, and timely adjust business layout and product portfolio, while also deeply selecting production areas, focusing on building core capabilities in procurement, production, inspection, and warehousing, and promoting digitalization and system construction to enhance operational efficiency and refined management - Adhere to the mission of 'providing healthy, high-quality, and safe family food for Chinese consumers', aiming to 'build valuable and influential food brands in China'[33](index=33&type=chunk) - Deepen the omni-channel ecosystem, strengthen channel management capabilities, and build a content-centric intelligent marketing ecosystem[33](index=33&type=chunk) - Continuously monitor industry dynamics, adjust business layout and product portfolio, expand new channels and businesses, and create healthy, high-quality star products[33](index=33&type=chunk) - Promote digitalization and system construction to enhance omni-channel operational efficiency and refined management levels[33](index=33&type=chunk) [Business Review](index=14&type=section&id=Business%20Review) In H1 2025, the Group's total revenue reached **RMB 3,063.5 million**, a **16.9%** year-on-year increase, with gross profit growing by **50.1%**, as the company continued to deepen existing categories, expand its product matrix and sales network, strengthen its multi-brand business model, and solidify supply chain management capabilities, maintaining leading sales volumes in core rice and corn categories while actively developing new light, healthy, and low-fat family food products Key Financial Performance for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 3,063.5 | 2,620.6 | 16.9% | | Gross Profit | 666.9 | 444.3 | 50.1% | | Gross Profit Margin | 21.8% | 17.0% | +4.8pp | | Profit Before Tax | 121.9 | 132.9 | (8.3%) | | Net Profit | 116.2 | 125.8 | (7.6%) | | Adjusted Net Profit | 294.3 | 148.9 | 97.7% | | Adjusted Net Profit Margin | 9.6% | 5.7% | +3.9pp | - The company continues to deepen existing categories, expand its multi-category product matrix, broaden its sales network, strengthen its multi-brand business model with distinct focuses, and solidify its supply chain management capabilities[34](index=34&type=chunk) [Our Brands and Products](index=15&type=section&id=Our%20Brands%20and%20Products) The Group owns brands such as 'Shiyuedaotian', 'Chaihuo Dayuan', and 'Fuxiang Renjia', maintaining leading sales volumes in rice and corn categories, and actively responds to consumer trends by launching snack foods like barbecue-flavored and spicy corn, and expanding into light family meal products such as brown rice onigiri and corn paste sachets, aiming to become an expert in family food innovation - Core brands include **Shiyuedaotian**, **Chaihuo Dayuan**, and **Fuxiang Renjia**[36](index=36&type=chunk) - The Shiyuedaotian brand has been recognized as 'China's leading sales volume in Northeast rice for six consecutive years' and 'China's leading sales volume in corn category for two consecutive years'[36](index=36&type=chunk) - Launched snack foods such as barbecue-flavored corn and spicy corn, as well as light family meal products like brown rice onigiri and corn paste sachets, to meet the composite demands for 'health, nutrition, and convenience'[36](index=36&type=chunk)[38](index=38&type=chunk) Revenue Breakdown by Product Category (RMB thousand) | Product Category | 2025 | % of Total Revenue | 2024 | % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Rice Products | 2,066,467 | 67.4% | 1,707,209 | 65.2% | | Corn Products | 433,069 | 14.1% | 514,221 | 19.6% | | Miscellaneous Grains, Beans and Other Products | 274,276 | 9.0% | 212,050 | 8.1% | | Dried Goods and Other Products | 289,643 | 9.5% | 187,085 | 7.1% | | **Total** | **3,063,455** | **100.0%** | **2,620,565** | **100.0%** | - Rice product revenue increased by **21.0%** year-on-year, mainly due to continuous strategic adjustments to deepen channels, increased sales of mid-to-high-end rice, and a strategic reduction in sales of low-margin rice[41](index=41&type=chunk) - Corn product revenue decreased by **15.8%** year-on-year, mainly because the Group aimed to improve profitability quality and adjusted its marketing investment strategy[41](index=41&type=chunk) [Our Sales Network](index=18&type=section&id=Our%20Sales%20Network) The Group has established extensive sales coverage through online channels (e-commerce platforms, online self-operated stores), modern supermarket channels, direct customers, and a distribution network, with online channels remaining the primary revenue source and significant growth observed in modern supermarket and direct customer revenues Revenue Breakdown by Sales Channel (RMB thousand) | Sales Channel | 2025 | % of Total Revenue | 2024 | % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Online Channels | 1,836,767 | 60.0% | 1,776,257 | 67.8% | | －E-commerce Platforms | 1,163,282 | 38.0% | 1,095,938 | 41.8% | | －Online Self-operated Stores | 673,485 | 22.0% | 680,319 | 26.0% | | Modern Supermarket Channels | 495,584 | 16.2% | 393,223 | 15.0% | | Direct Customers | 563,209 | 18.4% | 321,654 | 12.3% | | Distribution Network | 167,895 | 5.4% | 129,431 | 4.9% | | **Total** | **3,063,455** | **100.0%** | **2,620,565** | **100.0%** | - Revenue from e-commerce platforms increased by **6.2%** year-on-year, mainly due to channel adjustment strategies and efforts to improve profitability quality[45](index=45&type=chunk) - Revenue from modern supermarket channels increased by **26.0%** year-on-year, direct customer revenue increased by **75.1%** year-on-year, and distribution network revenue increased by **29.8%** year-on-year[45](index=45&type=chunk) [Our Production](index=19&type=section&id=Our%20Production) The Group prioritizes quality, ensuring product excellence through a comprehensive raw material supply and production management system, having established long-term partnerships with quality suppliers and adopting order-based and partial self-operated cultivation strategies, with highly standardized and automated production processes, modern industrial bases built in five core grain-producing regions in China, and a sweet corn production base under construction in Nanning, Guangxi - Long-term stable relationships have been established with various product suppliers, with core production areas including Shenyang Xinmin, Wuchang, Songyuan, Tonghe, and Aohan regions[46](index=46&type=chunk) - A diversified supply strategy is adopted, including strategic cooperation with quality suppliers, contract farming with farmers, and partial self-operated cultivation[46](index=46&type=chunk) - Production processes are highly standardized and automated, with modern industrial bases built near five core grain-producing regions in China[47](index=47&type=chunk) - A sweet corn production base is under construction in Nanning, Guangxi, expected to be completed and operational in H2 2025[47](index=47&type=chunk) [Supply Chain Management](index=20&type=section&id=Supply%20Chain%20Management) The Group achieves real-time monitoring of the entire value chain by deeply integrating various channel resources, efficiently collecting and analyzing consumer data, and synchronizing order, inventory, and capacity information, implementing order-based production to ensure product freshness, and establishing a modern warehousing and distribution system with five self-operated regional distribution centers and over ten local warehouses - Achieves real-time monitoring of all links in the value chain, efficiently collects and analyzes consumer data, and synchronizes order, inventory, and capacity information[48](index=48&type=chunk) - Executes order-based production, typically completing production, processing, and shipment within **three days** of a customer placing an order, ensuring product freshness[48](index=48&type=chunk) - Possesses over **twenty** automated production lines and has established **five** self-operated regional distribution centers and over **ten** local warehouses[48](index=48&type=chunk) [Food Safety and Quality Control](index=20&type=section&id=Food%20Safety%20and%20Quality%20Control) Food safety and product quality are the Group's top priorities, implementing stringent food safety and quality control standards and measures throughout the entire operation, from procurement, production, and storage to sales, with a dedicated quality assurance team responsible for systematic, full-lifecycle quality management - Strict food safety and quality control standards and measures are implemented throughout the entire operation, covering steps from procurement, production, and storage to sales[49](index=49&type=chunk) - The quality assurance team focuses on implementing and maintaining the quality control system to execute the Group's quality control plan at the group level[49](index=49&type=chunk) [Information Technology Systems](index=21&type=section&id=Information%20Technology%20Systems) The Group's information technology systems cover all aspects of its operations, including raw material supply, production, operations, and logistics, having developed and adopted complementary systems such as SCM, ERP, TMS, WMS, and CRM to enhance operational efficiency and data management - Information technology systems cover all aspects of operations, including raw material supply, production, operations, and logistics[50](index=50&type=chunk) - Complementary systems such as Supply Chain Management (SCM), ERP, Transportation Management System (TMS), Warehouse Management System (WMS), and Customer Relationship Management (CRM) are adopted to enable efficient product operations and data management[50](index=50&type=chunk) [Financial Review](index=21&type=section&id=Financial%20Review) The Group achieved growth in both revenue and gross profit in H1 2025, with an improved gross profit margin; however, profit for the period decreased due to a significant increase in fair value losses on financial assets, while selling and distribution expenses rose, and finance costs and income tax expenses decreased [Revenue and Gross Profit](index=21&type=section&id=Revenue%20and%20Gross%20Profit) Revenue for the reporting period was **RMB 3,063.5 million**, a **16.9%** year-on-year increase, with gross profit at **RMB 666.9 million**, up **50.1%** year-on-year, and gross profit margin increasing from **17.0%** to **21.8%**, primarily due to product mix adjustments, sales channel optimization, and a decrease in raw material rice prices Revenue and Gross Profit (RMB million) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,063.5 | 2,620.6 | 16.9% | | Gross Profit | 666.9 | 444.3 | 50.1% | | Gross Profit Margin | 21.8% | 17.0% | +4.8pp | - Revenue growth is primarily attributed to expanding the multi-category product matrix, adjusting business layout, and enhancing brand effect and competitiveness[51](index=51&type=chunk) - Gross profit margin improvement is mainly due to product structure adjustments (higher proportion of mid-to-high-end products, reduced investment in low-margin products), sales channel optimization, and a decrease in raw material rice prices[51](index=51&type=chunk) [Other Net Income](index=22&type=section&id=Other%20Net%20Income) Other net income decreased from **RMB 31.1 million** in the prior period of 2024 to **RMB 12.3 million** in 2025, primarily due to the absence of investment income from wealth management products with idle raised funds and the reversal of litigation provisions from the previous year Other Net Income (RMB million) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Other Net Income | 12.3 | 31.1 | - The decrease is mainly due to the absence of investment income from wealth management products with idle raised funds (**RMB 15.8 million**) and the reversal of litigation provisions (**RMB 3.8 million**) from the previous year in the reporting period[52](index=52&type=chunk) [Fair Value Changes of Biological Assets](index=22&type=section&id=Fair%20Value%20Changes%20of%20Biological%20Assets) Gain from fair value changes of biological assets decreased from **RMB 3.467 million** in the prior period of 2024 to **RMB 1.737 million** in 2025, primarily due to changes in cultivated area Gain from Fair Value Changes of Biological Assets (RMB thousand) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Gain from fair value changes of biological assets | 1,737 | 3,467 | - The decrease is mainly due to changes in cultivated area[53](index=53&type=chunk) [Selling and Distribution Expenses](index=22&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses increased by **27.4%** from **RMB 239.6 million** in the prior period of 2024 to **RMB 305.2 million** in 2025, primarily due to a significant increase in operating expenses from a substantial rise in the number of self-operated stores in certain channels, and increased ground advertising in airports and business districts Selling and Distribution Expenses (RMB million) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 305.2 | 239.6 | 27.4% | - The increase is mainly due to a significant increase in operating expenses from a substantial rise in the number of self-operated stores, and increased advertising and promotional expenses[54](index=54&type=chunk) [Administrative Expenses](index=22&type=section&id=Administrative%20Expenses) Administrative expenses slightly decreased from **RMB 73.2 million** in the prior period of 2024 to **RMB 70.4 million** in 2025, with various expenses remaining stable Administrative Expenses (RMB million) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Administrative Expenses | 70.4 | 73.2 | - Administrative expenses remained stable, with a slight decrease[55](index=55&type=chunk) [Impairment Loss Reversal/Expense on Trade and Other Receivables](index=22&type=section&id=Impairment%20Loss%20Reversal%2FExpense%20on%20Trade%20and%20Other%20Receivables) Impairment loss on trade and other receivables shifted from an expense of **RMB 2.1 million** in the prior period of 2024 to a reversal of **RMB 4.9 million** in 2025, primarily due to the recovery of some long-aged trade receivables during the reporting period Impairment Loss Reversal/Expense on Trade and Other Receivables (RMB million) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Impairment Loss Reversal/(Expense) on Trade and Other Receivables | 4.9 | (2.1) | - The shift to a reversal is mainly due to the recovery of some long-aged trade receivables[56](index=56&type=chunk) [Finance Costs](index=23&type=section&id=Finance%20Costs) Finance costs decreased by **23.8%** from **RMB 8.0 million** in the prior period of 2024 to **RMB 6.1 million** in 2025, primarily due to reduced interest expenses from a lower average borrowing balance and changes in foreign exchange gains and losses Finance Costs (RMB million) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 6.1 | 8.0 | (23.8%) | - The decrease is mainly due to a **RMB 8.2 million** reduction in interest expenses from a lower average borrowing balance, and a shift from foreign exchange gains in the prior year to foreign exchange losses in the reporting period[57](index=57&type=chunk) [Fair Value Changes of Financial Assets at FVTPL](index=23&type=section&id=Fair%20Value%20Changes%20of%20Financial%20Assets%20at%20FVTPL) During the reporting period, the Group incurred a fair value change loss of **RMB 182.1 million** on financial assets measured at fair value, a significant increase from **RMB 23.1 million** in the prior period, primarily attributable to equity investments in listed companies held for strategic cooperation and investment purposes Fair Value Changes of Financial Assets at FVTPL (RMB million) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Fair Value Changes of Financial Assets at FVTPL | (182.1) | (23.1) | - The loss significantly increased, primarily due to the Group's equity investments in listed companies held for strategic cooperation and investment purposes[58](index=58&type=chunk) [Income Tax Expense](index=23&type=section&id=Income%20Tax%20Expense) Income tax expense decreased by **19.7%** from **RMB 7.1 million** in the prior period of 2024 to **RMB 5.7 million** in 2025, primarily due to a reduction in taxable income Income Tax Expense (RMB million) | Indicator | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Income Tax | 5.7 | 7.1 | (19.7%) | - The decrease is mainly due to a reduction in taxable income[59](index=59&type=chunk) [Profit for the Period](index=23&type=section&id=Profit%20for%20the%20Period) Due to the combined impact of the aforementioned factors, the Group's profit for the period decreased from **RMB 125.8 million** in the prior period of 2024 to **RMB 116.2 million** in 2025 Profit for the Period (RMB million) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit for the Period | 116.2 | 125.8 | [Non-IFRS Measures](index=23&type=section&id=Non-IFRS%20Measures) The Group uses adjusted net profit (a non-IFRS measure) as an additional financial metric to supplement the consolidated financial statements presented under IFRS, defined as net profit for the period after deducting fair value changes of equity investments and after-tax dividend income, with adjusted net profit increasing by **97.7%** year-on-year and adjusted net profit margin rising from **5.7%** to **9.6%** during the reporting period - Adjusted net profit (a non-IFRS measure) serves as an additional financial metric, providing useful information to investors[61](index=61&type=chunk) - Adjusted net profit is defined as net profit for the period by deducting fair value changes of equity investments and after-tax dividend income[62](index=62&type=chunk) Reconciliation of Net Profit to Adjusted Net Profit (RMB thousand) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the Period | 116,226 | 125,761 | | Add: Net loss from fair value changes of financial assets at FVTPL | 178,092 | 23,109 | | **Adjusted Net Profit** | **294,318** | **148,870** | - Adjusted net profit increased by **97.7%** year-on-year, and the adjusted net profit margin rose from **5.7%** to **9.6%**, primarily due to product structure and strategic layout adjustments, increasing the proportion of mid-to-high-end products, and improving gross profit margin[63](index=63&type=chunk) [Inventory](index=24&type=section&id=Inventory) The Group's inventory decreased by **21.3%** from **RMB 1,360.2 million** on December 31, 2024, to **RMB 1,070.7 million** on June 30, 2025, with inventory turnover days reducing from **113 days** to **93 days**, primarily due to seasonal raw material procurement and production consumption during the reporting period Inventory (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Inventory | 1,070.7 | 1,360.2 | (21.3%) | - Inventory turnover days decreased from **113 days** in 2024 to **93 days** in the reporting period[64](index=64&type=chunk) - The decrease is mainly due to the seasonal impact of raw material procurement (primarily acquiring raw grains in the fourth quarter) and production consumption during the reporting period[64](index=64&type=chunk) [Biological Assets](index=25&type=section&id=Biological%20Assets) As of June 30, 2025, the fair value of the Group's biological assets for cultivated corn and rice was **RMB 15.0 million** and **RMB 14.0 million**, respectively, with no biological asset balance at year-end as these assets are harvested annually from July to October Fair Value of Biological Assets (RMB million) | Item | June 30, 2025 | | :--- | :--- | | Fair value of cultivated corn | 15.0 | | Fair value of cultivated rice | 14.0 | - The Group's cultivated biological assets are harvested annually from July to October, thus there is no biological asset balance at year-end[65](index=65&type=chunk) [Trade and Other Receivables (Detailed)](index=25&type=section&id=Trade%20and%20Other%20Receivables%20(Detailed)) The Group's trade receivables decreased by **4.0%** from **RMB 377.4 million** on December 31, 2024, to **RMB 362.2 million** on June 30, 2025, with turnover days slightly increasing to **22 days**, and other receivables decreasing primarily due to deductible recoverable VAT Trade Receivables (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Trade Receivables | 362.2 | 377.4 | (4.0%) | - Trade receivables turnover days slightly increased from **20 days** in 2024 to **22 days** in the reporting period[66](index=66&type=chunk) - The decrease in other receivables is mainly due to deductible recoverable VAT being offset during the reporting period[66](index=66&type=chunk) [Financial Assets at FVTPL (Detailed)](index=25&type=section&id=Financial%20Assets%20at%20FVTPL%20(Detailed)) As of June 30, 2025, the Group's financial assets at fair value through profit or loss amounted to **RMB 440.7 million**, primarily equity investments in listed companies, with the decrease from December 31, 2024, mainly attributable to fair value changes Financial Assets at FVTPL (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Financial Assets | 440.7 | 615.1 | - The decrease is mainly due to changes in the fair value of financial assets[67](index=67&type=chunk) [Trade and Other Payables (Detailed)](index=25&type=section&id=Trade%20and%20Other%20Payables%20(Detailed)) The Group's trade payables increased by **4.6%** from **RMB 152.7 million** on December 31, 2024, to **RMB 159.8 million** on June 30, 2025, with turnover days slightly increasing to **12 days**, and other payables significantly rising by **173.0%**, primarily due to an increase of **RMB 175.2 million** in dividends payable Trade Payables (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Trade Payables | 159.8 | 152.7 | 4.6% | | Other Payables | 274.5 | 100.5 | 173.0% | - Trade payables turnover days increased from **11 days** in the prior year to **12 days** in the reporting period[68](index=68&type=chunk) - The significant increase in other payables is mainly due to an increase of **RMB 175.2 million** in dividends payable by the company[68](index=68&type=chunk) [Contract Liabilities](index=25&type=section&id=Contract%20Liabilities) The Group's contract liabilities decreased by **62.1%** from **RMB 40.6 million** on December 31, 2024, to **RMB 15.4 million** on June 30, 2025, primarily due to the fulfillment of contract liability obligations during the reporting period and the impact of sales seasonality Contract Liabilities (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Contract Liabilities | 15.4 | 40.6 | (62.1%) | - The decrease is mainly due to the fulfillment of contract liability obligations and the impact of sales seasonality[69](index=69&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) The Group experienced an increase in cash and bank balances and a significant reduction in bank loans, leading to a notable decrease in the capital gearing ratio and an improvement in its liquidity position [Cash and Bank Balances](index=26&type=section&id=Cash%20and%20Bank%20Balances) The Group's cash and bank balances increased by **10.3%** from **RMB 713.0 million** on December 31, 2024, to **RMB 786.7 million** on June 30, 2025, primarily due to the combined effect of cash inflows from operating activities and repayment of borrowings Cash and Bank Balances (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 786.7 | 713.0 | 10.3% | - The increase is mainly due to the combined effect of cash inflows from operating activities and repayment of borrowings[70](index=70&type=chunk) [Bank Loans](index=26&type=section&id=Bank%20Loans) The Group's bank loans decreased by **69.0%** from **RMB 645.5 million** on December 31, 2024, to **RMB 200.1 million** on June 30, 2025, primarily due to repayment of borrowings during the reporting period Bank Loans (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Bank Loans | 200.1 | 645.5 | (69.0%) | - The significant decrease is mainly due to the Group's repayment of borrowings during the reporting period[71](index=71&type=chunk) [Capital Gearing Ratio](index=26&type=section&id=Capital%20Gearing%20Ratio) As of June 30, 2025, the Group's capital gearing ratio was **17.5%**, a decrease from **23.0%** on December 31, 2024, primarily due to a reduction in debt from repayment of borrowings Capital Gearing Ratio | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Capital Gearing Ratio | 17.5% | 23.0% | - The decrease is mainly due to the Group's repayment of borrowings, leading to a reduction in the amount of debt[72](index=72&type=chunk) [Financial Risks](index=26&type=section&id=Financial%20Risks) The Group faces credit, liquidity, interest rate, currency, and fair value measurement risks, and has implemented risk management plans to minimize potential adverse impacts, with credit risk primarily arising from trade receivables, liquidity managed through regular monitoring and sufficient cash reserves, interest rate risk from floating and fixed-rate borrowings, and currency risk mainly from USD and HKD denominated cash balances - The Group faces credit risk, liquidity risk, interest rate risk, currency risk, and fair value measurement risk[73](index=73&type=chunk) - Credit risk primarily arises from trade receivables, but credit risk for cash and bank balances is limited[74](index=74&type=chunk) - Liquidity is managed through regular monitoring of needs and maintaining sufficient cash reserves and committed credit facilities[75](index=75&type=chunk) - Interest rate risk arises from floating and fixed-rate interest-bearing borrowings, and currency risk primarily stems from USD and HKD denominated cash balances[76](index=76&type=chunk)[77](index=77&type=chunk) [Contingent Liabilities](index=27&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[78](index=78&type=chunk) [Capital Commitments and Capital Expenditure](index=27&type=section&id=Capital%20Commitments%20and%20Capital%20Expenditure) As of June 30, 2025, the Group's capital commitments amounted to approximately **RMB 101.5 million**, primarily for the purchase and construction of buildings, machinery, and equipment, while capital expenditure was approximately **RMB 106.4 million**, mainly for the acquisition of property, plant and equipment, and land use rights Capital Commitments and Capital Expenditure (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Capital Commitments | 101.5 | 64.4 | | Capital Expenditure for the Six Months Ended June 30 | 106.4 | 89.2 | - Capital commitments are primarily for the purchase and construction of buildings, machinery, and equipment[79](index=79&type=chunk) - Capital expenditure is primarily for the purchase of property, plant and equipment, and land use rights[79](index=79&type=chunk) [Pledged Assets](index=27&type=section&id=Pledged%20Assets) As of June 30, 2025, the total carrying amount of the Group's property, plant and equipment, and land use rights pledged for bank loans was **RMB 62.5 million**, a significant decrease from December 31, 2024 Total Carrying Amount of Pledged Assets (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Carrying Amount of Pledged Assets | 62.5 | 338.7 | [Significant Investments, Acquisitions and Disposals](index=27&type=section&id=Significant%20Investments%2C%20Acquisitions%20and%20Disposals) During the reporting period, the Group held no significant investments and undertook no material acquisitions or disposals of subsidiaries, associates, or joint ventures - No significant investments, acquisitions, or disposals occurred during the reporting period[81](index=81&type=chunk) [Future Significant Investments or Capital Asset Plans](index=27&type=section&id=Future%20Significant%20Investments%20or%20Capital%20Asset%20Plans) During the reporting period and up to the date of this announcement, the Group currently has no plans to acquire other significant investments or capital assets, apart from the 'Future Plans and Use of Proceeds' disclosed in the prospectus - Currently, there are no plans to acquire other significant investments or capital assets, except as disclosed in the prospectus[82](index=82&type=chunk) [Other Information](index=28&type=section&id=Other%20Information) [Compliance with Standard Code](index=28&type=section&id=Compliance%20with%20Standard%20Code) The Company has adopted the Standard Code as the code for securities transactions by directors and supervisors, and all directors and supervisors confirmed compliance with this code during the reporting period - All directors and supervisors confirmed compliance with the Standard Code during the reporting period[83](index=83&type=chunk) [Compliance with Corporate Governance Code](index=28&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company complied with all applicable provisions of the Corporate Governance Code during the reporting period, except for Code Provision C.2.1 (separation of roles of chairman and chief executive), as the Board believes Mr. Wang Bing's dual role as Chairman and General Manager fosters consistent internal leadership and efficient strategic planning, with sufficient independent non-executive directors safeguarding shareholders' interests - The Company has complied with all applicable provisions of the Corporate Governance Code, except for Code Provision C.2.1[84](index=84&type=chunk) - The roles of Chairman and General Manager are held by Mr. Wang Bing, an arrangement the Board believes ensures consistent internal leadership and efficient strategic planning for the Group[84](index=84&type=chunk) - The Board has a sufficient number of independent non-executive directors (**three** out of **nine** directors) to safeguard the overall interests of the company and its shareholders[84](index=84&type=chunk) [Compliance with Laws and Regulations](index=28&type=section&id=Compliance%20with%20Laws%20and%20Regulations) The Group's operations are primarily conducted in China, and it has complied with relevant laws and regulations in applicable regions that have a significant impact on the Group, with no material breaches of such laws and regulations during the reporting period - The Group has complied with relevant laws and regulations in applicable regions that have a significant impact on the Group[85](index=85&type=chunk) - During the reporting period, the Group had no material breaches of such laws and regulations[85](index=85&type=chunk) [Purchase, Sale and Redemption of Listed Securities](index=28&type=section&id=Purchase%2C%20Sale%20and%20Redemption%20of%20Listed%20Securities) During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, nor did they hold any treasury shares - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[86](index=86&type=chunk) - As of the end of the reporting period, neither the Company nor any of its subsidiaries held any treasury shares[86](index=86&type=chunk) [Use of Proceeds from Global Offering](index=29&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) The net proceeds from the Company's H-share global offering were approximately **HKD 716.4 million**, with most funds utilized as planned for enhancing supplier cooperation, capacity expansion, channel coverage, brand enhancement, and working capital as of June 30, 2025, though the proposed timeline for unutilized proceeds for the digital middle-office system is later than originally planned - Net proceeds from the global offering were approximately **HKD 716.4 million**[88](index=88&type=chunk) Use of Proceeds from Global Offering and Utilization (HKD million) | Proposed Use | Approximate Percentage of Total Net Proceeds | Net Proceeds from Global Offering | Net Proceeds Used as of June 30, 2025 | Unutilized Net Proceeds as of June 30, 2025 | Expected Timeline for Remaining Net Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | | Enhance cooperation with suppliers and strengthen procurement capabilities | 35% | 250.74 | 200.76 | 49.98 | Before end of 2025 | | Capacity expansion, upgrade of existing production lines, increase warehousing and logistics coverage, and fund production activities related to business expansion | 30% | 214.92 | 154.51 | 60.41 | Before end of 2025 | | Deepen channel coverage and build a sales ecosystem | 10% | 71.64 | 60.88 | 10.76 | Before end of 2025 | | Enhance brand momentum | 10% | 71.64 | 64.21 | 7.43 | Before end of 2025 | | Build a digital middle-office system | 5% | 35.82 | 7.75 | 28.07 | Before end of 2027 | | Working capital and general corporate purposes | 10% | 71.64 | 65.80 | 5.84 | Before end of 2025 | | **Total** | **100%** | **716.40** | **553.91** | **162.49** | | - The proposed timeline for unutilized net proceeds for building the digital middle-office system is later than originally planned due to the company's overall information technology strategy adjustment[88](index=88&type=chunk) [Audit Committee](index=30&type=section&id=Audit%20Committee) The Audit Committee comprises one non-executive director and two independent non-executive directors, with Mr. Yang Zhida serving as Chairman, and has reviewed the Group's accounting principles, financial reporting matters, and the unaudited interim results for the six months ended June 30, 2025 - The Audit Committee consists of one non-executive director and two independent non-executive directors, with Mr. Yang Zhida as Chairman[89](index=89&type=chunk) - The Committee has reviewed the accounting principles and practices adopted by the Group and the interim results[89](index=89&type=chunk) [Review of Interim Financial Information](index=30&type=section&id=Review%20of%20Interim%20Financial%20Information) The financial information in this announcement is extracted from the unaudited interim financial report, which has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410, resulting in a review report with an unmodified conclusion - The interim financial report is unaudited but has been reviewed by KPMG, which issued a review report with an unmodified conclusion[90](index=90&type=chunk) [Interim Dividend](index=30&type=section&id=Interim%20Dividend) The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025[91](index=91&type=chunk) [Human Resources and Remuneration Policy](index=30&type=section&id=Human%20Resources%20and%20Remuneration%20Policy) Adhering to the philosophy that 'talent is the company's most valuable resource', the Company continuously refines its human resource management system, focusing on recruiting talent for key business channels, expanding campus recruitment, and introducing supply chain and quality control professionals in H1, while fostering talent through 'Amoeba' management and 'central-decentralized-central' linkage models, strengthening performance management, and improving the remuneration system to attract and retain talent, with **2,225** full-time employees as of June 30, 2025 - The company focuses on key business channels, strengthens talent pipeline development, expands campus recruitment, and introduces professionals in supply chain and quality control[92](index=92&type=chunk) - Talent is cultivated through 'Amoeba' management and 'central-decentralized-central' linkage models, strengthening performance management[93](index=93&type=chunk) - The remuneration system is improved, flexibly utilizing various compensation structures and models, such as piece-rate wages and performance incentives, and handling various social insurances and housing provident funds[94](index=94&type=chunk) - As of June 30, 2025, the company had **2,225** full-time employees[95](index=95&type=chunk) [Share Schemes](index=31&type=section&id=Share%20Schemes) For the six months ended June 30, 2025, neither the Company nor its principal subsidiaries had any share schemes - For the six months ended June 30, 2025, neither the Company nor its principal subsidiaries had any share schemes[96](index=96&type=chunk) [Subsequent Events](index=32&type=section&id=Subsequent%20Events) As of the date of this announcement, no significant events have occurred since June 30, 2025, that would materially affect the Group's operations and financial performance - As of the date of this announcement, no significant events have occurred since June 30, 2025, that would materially affect the Group's operations and financial performance[97](index=97&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=32&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This announcement has been published on the HKEX website and the Company's website, and the interim report containing all information required by the Listing Rules will be published on the aforementioned websites in due course - This announcement has been published on the HKEX website (www.hkexnews.hk) and the Company's website (www.shiyuedaotian.com)[98](index=98&type=chunk) - The interim report, containing all information required by the Listing Rules, will be published on the aforementioned websites in due course[98](index=98&type=chunk) [Appendices](index=32&type=section&id=Appendices) [Definitions](index=32&type=section&id=Definitions) This section provides definitions for key terms and abbreviations used in the report, including Audit Committee, Board, Company, Corporate Governance Code, ERP System, Directors, Group, H Shares, Hong Kong, HKD, Listing Rules, LKA, Standard Code, NKA, China, Prospectus, Reporting Period, RMB, Shares, Shareholders, Stock Exchange, Subsidiaries, Supervisors, Treasury Shares, Unlisted Shares, and USD [Board of Directors](index=34&type=section&id=Board%20of%20Directors) As of the date of this announcement, the Board of Directors comprises five executive directors (Mr. Wang Bing, Ms. Zhao Wenjun, Ms. Zhao Shulan, Mr. Shu Minghe, and Mr. Zou Hao), one non-executive director (Mr. Chang Bin), and three independent non-executive directors (Mr. Shi Ketong, Mr. Yang Zhida, and Mr. Lin Chen), with Mr. Wang Bing also serving as Chairman and Executive Director - The Board of Directors includes **five** executive directors, **one** non-executive director, and **three** independent non-executive directors[101](index=101&type=chunk) - Mr. Wang Bing serves concurrently as Chairman and Executive Director[101](index=101&type=chunk)