香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 Swang Chai Chuan Limited 雙財莊有限公司 （於 開 曼 群 島 註 冊 成 立 的 有 限 公 司） （股 份 代 號：2321） 截 至2025年6月30日止六個月的 中期業績公告 財務摘要 截 至2025年6月30日止六個月（「本期間」）： 雙財莊有限公司（「本公司」）董 事（「董 事」）會（「董事會」）呈報本公司及其附屬公 司（統 稱「本集團」）截 至2025年6月30日 止 六 個 月 的 未 經 審 核 中 期 業 績，連 同2024 年 同 期 的 比 較 數 字 如 下。中 期 業 績 未 經 外 聘 核 數 師 審 核，惟 已 經 本 公 司 審 核 委 員 會（「審核委員會」）審 閱。 – 1 – • 本集團（定 義 見 下 文）錄得未經審核收益約467.8百 萬 令 吉，較 截 至2024年 6月30日止 ...

[Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Honghua Group Limited announced its unaudited interim results for the six months ended June 30, 2025, with revenue decreasing by 6.3% year-on-year, while gross profit and net profit attributable to owners of the parent company significantly increased, and gross margin improved by 2.1 percentage points. The company's board of directors recommended no interim dividend | Indicator | Six months ended June 30, 2025 (RMB thousands) | Six months ended June 30, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,601,073 | 2,776,000 | -6.3% | | Gross profit | 338,585 | 301,514 | 12.3% | | Operating profit | 81,311 | 80,970 | 0.4% | | Profit attributable to owners of the Company | 37,095 | 2,419 | 1433.5% | | Earnings Per Share - Basic (RMB cents) | 0.41 | 0.03 | EPS increased by 0.38 cents per share | | Earnings Per Share - Diluted (RMB cents) | 0.41 | 0.03 | EPS increased by 0.38 cents per share | - Gross margin increased by **2.1 percentage points** from **10.9%** in the same period of 2024 to **13.0%** in the same period of 2025[3](index=3&type=chunk) - The Board recommended no interim dividend for the six months ended June 30, 2025[3](index=3&type=chunk) [Introduction to Interim Results](index=1&type=section&id=Introduction%20to%20Interim%20Results) This announcement presents Honghua Group's unaudited condensed consolidated interim financial results for the six months ended June 30, 2025, which have been reviewed by the company's audit committee but not by the auditors - The Group's unaudited condensed consolidated interim financial results for the six months ended June 30, 2025, have been announced[4](index=4&type=chunk) - The interim results have not been reviewed or audited by the Company's auditors but have been reviewed by the Audit Committee[4](index=4&type=chunk) [Unaudited Condensed Consolidated Interim Financial Statements](index=2&type=section&id=Unaudited%20Condensed%20Consolidated%20Interim%20Financial%20Statements) [Unaudited Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) This statement details revenue, cost of sales, gross profit, various expenses, net finance costs, share of profit/loss from associates and joint ventures, profit before tax, income tax expense, and profit for the period for the six months ended June 30, 2025, reflecting a significant improvement in the company's profitability | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 2,601,073 | 2,776,000 | | Cost of sales | (2,262,488) | (2,474,486) | | Gross profit | 338,585 | 301,514 | | Operating profit | 81,311 | 80,970 | | Net finance costs | (40,977) | (68,848) | | Profit before tax | 37,544 | 12,498 | | Income tax expense | (997) | (15,114) | | Profit/(Loss) for the period | 36,547 | (2,616) | | Profit/(Loss) attributable to owners of the Company | 37,095 | 2,419 | - Profit for the period turned from a loss of **RMB 2,616 thousands** in the same period of 2024 to a profit of **RMB 36,547 thousands** in the same period of 2025[5](index=5&type=chunk) - Net finance costs significantly decreased year-on-year from **RMB 68,848 thousands** to **RMB 40,977 thousands**[5](index=5&type=chunk) [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the total of profit for the period and other comprehensive income, where foreign currency translation differences significantly impacted comprehensive income, resulting in a total comprehensive expense of RMB 9,149 thousands for the first half of 2025, compared to an income of RMB 40,943 thousands in the prior year | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit/(Loss) for the period | 36,547 | (2,616) | | Other comprehensive (expense)/income – net of tax | (45,696) | 43,559 | | Total comprehensive (expense)/income for the period | (9,149) | 40,943 | | Total comprehensive (expense)/income for the period attributable to owners of the Company | (8,601) | 45,978 | - In the first half of 2025, foreign currency translation differences (items not to be reclassified to profit or loss) resulted in an expense of **RMB 64,679 thousands**, significantly impacting other comprehensive income[7](index=7&type=chunk) [Unaudited Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets increased to RMB 12,710,723 thousands, with a higher proportion of current assets. Changes in asset structure were mainly due to increases in contract assets and cash and cash equivalents, and a decrease in non-current assets. Total liabilities also increased, with current liabilities accounting for over 80% | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total assets | 12,710,723 | 11,928,201 | | Non-current assets | 3,993,739 | 4,294,609 | | Current assets | 8,716,984 | 7,633,592 | | Total equity | 3,655,440 | 3,664,589 | | Total liabilities | 9,055,283 | 8,263,612 | | Current liabilities | 7,538,262 | 6,143,432 | | Non-current liabilities | 1,517,021 | 2,120,180 | - Contract assets within current assets significantly increased from **RMB 1,472,915 thousands** at the end of 2024 to **RMB 2,102,226 thousands** as of June 30, 2025[8](index=8&type=chunk) - Cash and cash equivalents increased from **RMB 790,586 thousands** at the end of 2024 to **RMB 1,356,489 thousands** as of June 30, 2025[8](index=8&type=chunk) [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Financial%20Statements) [General Information](index=6&type=section&id=General%20Information) Honghua Group primarily engages in drilling rigs, oil and gas extraction equipment, drilling engineering services, fracturing business, and marine equipment. The company is registered in the Cayman Islands, with its parent company being Dongfang Electric Group International Investment Co., Ltd., and ultimate parent company being China Dongfang Electric Group Co., Ltd. These interim financial statements are unaudited and presented in RMB - The Group's principal activities include manufacturing drilling rigs, oil and gas extraction equipment, providing drilling engineering services, fracturing business, and marine equipment business[10](index=10&type=chunk) - The Company was incorporated in the Cayman Islands on **June 15, 2007**, and listed on The Stock Exchange of Hong Kong Limited on **March 7, 2008**[10](index=10&type=chunk)[11](index=11&type=chunk) - These condensed consolidated interim financial statements are presented in **RMB** and are unaudited[12](index=12&type=chunk)[13](index=13&type=chunk) [Basis of Preparation](index=6&type=section&id=Basis%20of%20Preparation) These condensed consolidated interim financial statements are prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' and should be read in conjunction with the annual financial statements. New and revised International Financial Reporting Standards were first applied in this period, but had no significant impact on financial position and performance - The condensed consolidated interim financial statements are prepared in accordance with International Accounting Standard **34 'Interim Financial Reporting'**[14](index=14&type=chunk) - New and revised International Financial Reporting Standards were first applied in this period, but had no significant impact on the financial position and performance[14](index=14&type=chunk) [Segment Information](index=7&type=section&id=Segment%20Information) The Group is divided into five reportable operating segments based on business lines: Land Drilling Rigs, Parts and Others, Drilling Engineering Services, Fracturing Business, and Marine Sector. Segment performance is primarily assessed based on segment profit or loss, excluding share of profit/loss from associates and joint ventures, net other gains or losses, other income, and unallocated head office expenses. During the reporting period, each segment showed varied revenue and profit performance, with significant revenue growth in the Middle East market, while revenue from Parts and Others decreased due to business structure adjustments - The Group has identified five reportable segments: Land Drilling Rigs, Parts and Others, Drilling Engineering Services, Fracturing Business, and Marine Sector[15](index=15&type=chunk)[17](index=17&type=chunk) - Segment performance assessment excludes share of profit/(loss) from associates and joint ventures, net other gains or losses, other income, and unallocated head office and corporate expenses[16](index=16&type=chunk) [Segment Overview](index=7&type=section&id=Segment%20Overview) Management determines operating segments based on information reviewed for resource allocation and performance evaluation, identifying five reportable segments: Land Drilling Rigs, Parts and Others, Drilling Engineering Services, Fracturing Business, and Marine Sector - Management determines operating segments based on information reviewed by senior executive management for allocating resources and assessing performance[15](index=15&type=chunk) - The Group has identified five reportable segments: Land Drilling Rigs, Parts and Others, Drilling Engineering Services, Fracturing Business, and Marine Sector[17](index=17&type=chunk) [Segment Performance and Revenue](index=8&type=section&id=Segment%20Performance%20and%20Revenue) This section details the revenue and profit/loss for each of the five operating segments, showing varied performance with significant profit growth in Land Drilling Rigs and Marine Sector, and reduced losses in Fracturing Business | Segment | 2025 Revenue (RMB thousands) | 2024 Revenue (RMB thousands) | 2025 Profit/(Loss) (RMB thousands) | 2024 Profit/(Loss) (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Land Drilling Rigs | 801,453 | 869,464 | 88,266 | 25,672 | | Parts and Others | 574,751 | 968,571 | 94,773 | 108,266 | | Drilling Engineering Services | 174,505 | 173,795 | 11,451 | 33,689 | | Fracturing Business | 433,421 | 307,091 | (34,157) | (93,627) | | Marine Sector | 616,943 | 457,079 | 32,482 | 10,853 | | Total | 2,601,073 | 2,776,000 | 192,815 | 84,853 | - Fracturing Business's loss significantly narrowed from **RMB 93,627 thousands** in the same period of 2024 to a loss of **RMB 34,157 thousands** in the same period of 2025[18](index=18&type=chunk) - Marine Sector profit increased from **RMB 10,853 thousands** in the same period of 2024 to **RMB 32,482 thousands** in the same period of 2025[18](index=18&type=chunk) [Revenue and Non-Current Assets by Geography](index=9&type=section&id=Revenue%20and%20Non-Current%20Assets%20by%20Geography) This section presents revenue and non-current assets broken down by geographical region, highlighting significant revenue growth in the Middle East and stable non-current assets in China | Region | 2025 Revenue (RMB thousands) | 2024 Revenue (RMB thousands) | | :--- | :--- | :--- | | China | 1,295,528 | 1,296,267 | | Middle East | 1,029,806 | 779,714 | | Europe | 191,541 | 132,282 | | Americas | 42,140 | 58,842 | | South and Southeast Asia | 25,277 | 144,062 | | Africa | 16,781 | 364,833 | | Total | 2,601,073 | 2,776,000 | - Revenue from the Middle East region increased by **32.1%** year-on-year, reaching **RMB 1,029,806 thousands**[19](index=19&type=chunk) | Region | June 30, 2025 Non-current assets (RMB thousands) | December 31, 2024 Non-current assets (RMB thousands) | | :--- | :--- | :--- | | China | 2,916,149 | 3,037,834 | | Middle East | 419,119 | 377,919 | | Africa | 41,349 | 41,863 | | Europe | 2,181 | 1,036 | | Americas | 74 | 74 | | Total | 3,378,872 | 3,458,726 | [Major Customers](index=10&type=section&id=Major%20Customers) The Group's revenue for the six months ended June 30, 2025, included a significant portion from one external customer, with no other customer contributing more than 10% of total revenue - For the six months ended June 30, 2025, approximately **RMB 569,620,000** of the Group's revenue was derived from one external customer, primarily from sales of 'Land Drilling Rigs' and 'Parts and Others'[20](index=20&type=chunk) - The Group had no other customers contributing more than **10%** of total revenue[20](index=20&type=chunk) [Operating Profit](index=10&type=section&id=Operating%20Profit) In the calculation of operating profit for the period, key deductions included inventory write-downs and impairment provisions for property, plant, and equipment, while reversals of impairment provisions for financial assets and gains on disposal of property, plant, and equipment and other intangible assets were recognized | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Write-down of inventories | 27,508 | 28,804 | | Reversal of impairment loss on financial assets | (8,351) | (12,628) | | Impairment (reversal)/provision for contract assets | (485) | 549 | | Impairment provision for property, plant and equipment | – | 3,996 | | Gain on disposal of property, plant and equipment and other intangible assets | (6,669) | (478) | [Income Tax Expense](index=11&type=section&id=Income%20Tax%20Expense) Income tax expense significantly decreased during the period, primarily due to the reversal of deferred income tax. Chinese subsidiaries enjoy a 15% corporate income tax rate under high-tech enterprise or western preferential policies. The Board decided that Chinese subsidiaries would not distribute dividends to offshore holding companies in the foreseeable future to support business development | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current income tax – China | 1,265 | 1,788 | | Current income tax – Other regions | 7,500 | 12,935 | | Deferred income tax | (7,768) | 391 | | Total | 997 | 15,114 | - High-tech enterprises such as Sichuan Honghua, Gansu Hongteng, and Jiangsu Ocean are subject to a corporate income tax rate of **15%**[24](index=24&type=chunk) - Honghua Electric, Sichuan Oil Service, and Hanzheng Testing are approved to enjoy a preferential tax rate of **15%** as qualified enterprises in Western China[24](index=24&type=chunk) - The Board decided that subsidiaries of the Group located in the People's Republic of China would not distribute dividends to offshore holding companies in the foreseeable future to fund business and future development[26](index=26&type=chunk) [Earnings Per Share](index=12&type=section&id=Earnings%20Per%20Share) Both basic and diluted earnings per share attributable to owners of the Company were RMB 0.41 cents, a significant increase from the prior year, with basic and diluted EPS being consistent due to the absence of dilutive potential shares | Indicator | 2025 (RMB thousands/thousand shares/RMB cents per share) | 2024 (RMB thousands/thousand shares/RMB cents per share) | | :--- | :--- | :--- | | Profit attributable to owners of the Company | 37,095 | 2,419 | | Adjusted weighted average number of ordinary shares in issue | 8,979,400 | 8,979,400 | | Basic and diluted earnings per share | 0.41 | 0.03 | - Diluted loss per share was consistent with basic earnings per share due to the absence of dilutive potential shares during the periods presented[28](index=28&type=chunk) [Dividends](index=12&type=section&id=Dividends) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[30](index=30&type=chunk) [Property, Plant and Equipment](index=13&type=section&id=Property%2C%20Plant%20and%20Equipment) As of June 30, 2025, the Group's net book value of property, plant, and equipment was RMB 2,437,359 thousands, a decrease from the end of 2024, primarily due to depreciation expense and disposals | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Net book value at end of period | 2,437,359 | 2,541,627 | | Additions | 46,153 | - | | Disposals | (16,850) | - | | Depreciation expense | (132,919) | - | - For the six months ended June 30, 2025, depreciation expense was **RMB 132,919 thousands**[31](index=31&type=chunk) [Trade and Other Receivables](index=14&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, the Group's total trade and other receivables were RMB 3,685,908 thousands, a decrease from the end of 2024. Trade receivables and bills receivable within one year accounted for the largest proportion, and the company maintains different credit policies, with trade receivables generally payable within 90 days | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables | 2,340,830 | 2,683,320 | | Bills receivable | 51,907 | 215,246 | | Amounts due from related parties | 392,812 | 475,394 | | Prepayments to non-related parties | 660,367 | 455,121 | | Total | 3,685,908 | 4,110,463 | | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within one year | 1,795,326 | 2,374,741 | | Over one year | 377,942 | 365,514 | | Total | 2,173,268 | 2,740,255 | - Trade receivables are generally payable within **90 days** after the Group submits invoices to customers[33](index=33&type=chunk) [Borrowings](index=15&type=section&id=Borrowings) As of June 30, 2025, the Group's total borrowings were RMB 4,771,805 thousands, an increase from the end of 2024, with a significant rise in the current portion. Borrowings primarily include bank loans, unsecured related party loans, and other borrowings, with detailed disclosures of terms and repayment status for several related party syndicated and entrusted loans | Borrowing type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank loans | 3,174,664 | 2,895,356 | | Unsecured related party loans | 1,463,760 | 1,108,860 | | Other borrowings | 86,381 | 98,538 | | Total borrowings | 4,771,805 | 4,149,754 | | Current portion | 3,333,771 | 2,110,702 | | Non-current portion | 1,438,034 | 2,039,052 | - The Group's subsidiary, Honghua (China) Investment Co., Ltd., obtained syndicated loans from Dongfang Electric Group Finance Co., Ltd., Sichuan Bank, and Industrial Bank, with a total credit facility of **RMB 1,470,000,000**[35](index=35&type=chunk) - As of June 30, 2025, the Group had unutilized fixed-rate borrowing facilities of **RMB 6,563,512 thousands**[39](index=39&type=chunk) [Trade and Other Payables](index=19&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, the Group's total trade and other payables were RMB 3,270,999 thousands, a slight decrease from the end of 2024. Trade payables accounted for the largest proportion, with the vast majority being current liabilities due within one year | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade payables | 2,450,057 | 2,182,072 | | Amounts due to related parties | 407,925 | 434,695 | | Bills payable | 190,648 | 520,065 | | Other payables | 222,369 | 270,669 | | Total | 3,270,999 | 3,407,501 | | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within one year | 2,657,571 | 2,771,633 | | Over one year | 386,680 | 360,901 | | Total | 3,044,251 | 3,132,534 | [Events After Reporting Period](index=19&type=section&id=Events%20After%20Reporting%20Period) As of the approval date of these condensed consolidated financial statements, there were no significant events after June 30, 2025, requiring disclosure by the Group - The Group had no significant events requiring disclosure from June 30, 2025, up to the approval date of these condensed consolidated financial statements[42](index=42&type=chunk) [Business Review](index=20&type=section&id=Business%20Review) [Company Overview](index=20&type=section&id=Company%20Overview) Honghua Group is a global leader in oil and gas exploration and development equipment manufacturing and drilling engineering services, operating across major oil and gas producing regions worldwide, offering a full range of land drilling rigs, electric fracturing equipment, core components for drilling and completion equipment, drilling engineering services, digital drilling and completion products, offshore wind power, marine oil and gas and offshore equipment manufacturing, and new energy equipment and integrated services for oil and gas fields - Honghua Group is a global leading company in oil and gas exploration and development equipment manufacturing and drilling engineering services[43](index=43&type=chunk) - The product portfolio is extensive, covering land drilling rigs, electric fracturing, drilling engineering services, marine equipment, and new energy equipment[43](index=43&type=chunk) [Market Environment and Strategy](index=20&type=section&id=Market%20Environment%20and%20Strategy) In the first half of 2025, international oil prices fluctuated due to geopolitical conflicts and global economic downturn pressures, increasing the oil and gas industry's focus on equipment and service efficiency, stability, and safety. Honghua Group aligns with the energy transition trend, focusing on enhancing core competitiveness, seizing opportunities in intelligent, unmanned, and green development, and serving national deep-earth and deep-sea strategies - International oil prices experienced significant short-term fluctuations due to multiple factors including the Russia-Ukraine war, Iran-Israel conflict, US tariff policies, OPEC+ production increases, and global economic downturn pressures[44](index=44&type=chunk) - The oil and gas industry increased the application of intelligent equipment and green extraction technologies, with unconventional oil and gas development and deep-sea energy development becoming new growth cores[44](index=44&type=chunk) - The Group's strategy focuses on enhancing core competitiveness, seizing opportunities in intelligent, unmanned, and green development, and serving national deep-earth and deep-sea strategies[44](index=44&type=chunk) [Quality and Efficiency Improvements](index=20&type=section&id=Quality%20and%20Efficiency%20Improvements) The Group's revenue decreased by 6.3% in the first half of 2025, primarily due to proactive business structure adjustments and streamlining low-margin businesses. By reducing financing costs, controlling expenses, and optimizing cost management, gross profit increased by 12.3% year-on-year, and net profit attributable to owners of the parent company surged by 1433.5%. Working capital turnover efficiency significantly improved, with net cash flow from operating activities increasing by 132.4% year-on-year - Revenue decreased by **6.3%** to **RMB 2,601.07 million**, primarily due to the company's proactive adjustment of its business structure and contraction of low-margin business segments[45](index=45&type=chunk) - Financing costs decreased by **0.89 percentage points** to **2.5%**, interest expenses decreased by **27.5%** year-on-year, and the finance cost ratio decreased by **0.90 percentage points** to **1.6%**[46](index=46&type=chunk) | Indicator | Six months ended June 30, 2025 | Six months ended June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Gross profit | RMB 338.59 million | RMB 301.51 million | Increased by 12.3% | | Net profit attributable to owners of the parent company | RMB 37.10 million | RMB 2.42 million | Significantly increased by 1433.5% | | Gross profit margin | 13.0% | 10.9% | Increased by 2.1 percentage points | | Average turnover days for trade and bills receivables | 201 days | 268 days | Decreased by 67 days | | Average turnover days for inventories | 126 days | 144 days | Decreased by 18 days | | Net cash flow from operating activities | RMB 93.67 million | RMB 40.30 million | Increased by 132.4% | [Market Expansion](index=21&type=section&id=Market%20Expansion) The Group achieved multi-faceted breakthroughs in market expansion, with stable revenue in the Chinese market and a decrease in overseas market revenue, though the Middle East market performed strongly with a 32.1% year-on-year growth. Total new effective orders increased by 14.2% year-on-year, with overseas orders surging by 107%, securing several major contracts in the Middle East and Indonesia, and entering CNPC's framework bidding and high-end scientific research vessel construction for the first time - Revenue from the Chinese market was **RMB 1,295.53 million**, a slight decrease of **0.06%** year-on-year, accounting for **49.8%** of total revenue[47](index=47&type=chunk) - Overseas market revenue was **RMB 1,305.55 million**, a year-on-year decrease of **11.8%**, but Middle East market revenue increased by **32.1%** year-on-year to **RMB 1,029.81 million**[47](index=47&type=chunk) - New effective orders reached **RMB 4,578 million**, a year-on-year increase of **14.2%**, with overseas new effective orders reaching **RMB 2,556 million**, a year-on-year increase of **107%**[49](index=49&type=chunk) - Successfully signed contracts for **RMB 1.5 billion** intelligent cluster well drilling rigs for artificial islands, several desert fast-moving drilling rigs exceeding **USD 100 million** (Middle East), and **6 Offshore Construction Vessel (OCV)** orders from Middle Eastern clients[49](index=49&type=chunk) - Domestically, the Group was selected for CNPC's framework bidding for the first time, secured an order for Sinopec's oil production platform new energy photovoltaic power generation project, and signed a shipbuilding engineering sub-procurement contract exceeding **RMB 240 million**, entering the high-end scientific research vessel construction niche market[49](index=49&type=chunk) [Revenue by Market](index=22&type=section&id=Revenue%20by%20Market) This section provides a breakdown of revenue by geographical region, showing stable performance in China, a decrease in overall overseas revenue, but strong growth in the Middle East market | Regional Distribution | 2025 Revenue (RMB millions) | 2025 Proportion (%) | 2024 Revenue (RMB millions) | 2024 Proportion (%) | Revenue Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | China | 1,295.52 | 49.81 | 1,296.27 | 46.70 | -0.06 | | Overseas | 1,305.55 | 50.19 | 1,479.73 | 53.30 | -11.77 | | Middle East | 1,029.81 | 39.59 | 779.71 | 28.09 | 32.07 | | Other Overseas | 275.74 | 10.60 | 700.02 | 25.21 | -60.61 | | Total | 2,601.07 | 100.00 | 2,776.00 | 100.00 | -6.30 | [New Effective Orders](index=22&type=section&id=New%20Orders) The Group recorded significant growth in new effective orders, particularly from overseas markets, securing major contracts for intelligent drilling rigs, desert fast-moving rigs, and offshore engineering vessels - During the reporting period, the Group recorded new effective orders totaling **RMB 4,578 million**, a year-on-year increase of **14.2%**[49](index=49&type=chunk) - Overseas new effective orders reached **RMB 2,556 million**, a year-on-year increase of **107%**[49](index=49&type=chunk) - Successfully signed contracts in the international market for **RMB 1.5 billion** intelligent cluster well drilling rigs for artificial islands, several desert fast-moving drilling rigs exceeding **USD 100 million**, and **6 Offshore Construction Vessel (OCV)** orders from Middle Eastern clients[49](index=49&type=chunk) [Technology Innovation and Green Development](index=23&type=section&id=Technology%20Innovation%20and%20Green%20Development) The Group made significant progress in technological innovation, applying for 55 patents in the first half of the year, with a cumulative total of 859 valid patents. Breakthroughs were achieved in equipment intelligence, drilling digitalization, completion digitalization, and new energy-related industries, notably the intelligent fracturing demonstration project and the implementation of 'photovoltaic + oil and gas' new energy business - During the reporting period, **55 patents** were applied for (**30 invention patents**), with a cumulative total of **859 valid patents** (**397 invention patents**)[50](index=50&type=chunk) - Awarded the **First Prize for Petroleum and Petrochemical Equipment Technology Innovation Achievements in 2025**, the **Second Prize for National Drilling Standardization Committee Standard Innovation**, and the **First Prize for Chongqing Science and Technology Progress Award in 2024**[50](index=50&type=chunk) - Key efforts were made to advance the R&D of **Intelligent Drilling Rig 2.0** and national deep-earth drilling rig research projects, and to build **AI edge computing capabilities** in drilling digitalization[50](index=50&type=chunk) - The intelligent fracturing demonstration project achieved breakthrough progress, realizing dynamic real-time optimization of fracturing parameters and remote collaboration in operations[50](index=50&type=chunk) - Achieved the first 'photovoltaic + oil and gas' new energy business implementation, completing a new breakthrough in photovoltaic power generation and 'zero-carbon' power supply in the oil and gas field[50](index=50&type=chunk) [Business Model and Segment Performance](index=24&type=section&id=Business%20Model%20and%20Segment%20Performance) The Group's business model covers Land Drilling Rigs, Parts and Others, Drilling Engineering Services, Marine Sector, and Fracturing Business. During the reporting period, revenue from the Marine Sector and Fracturing Business significantly increased, while revenue from Parts and Others substantially decreased due to proactive business structure adjustments. Each business segment achieved new progress and breakthroughs in both domestic and international markets | Business Category | 2025 Revenue (RMB millions) | 2025 Proportion (%) | 2024 Revenue (RMB millions) | 2024 Proportion (%) | Revenue Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Land Drilling Rigs | 801.45 | 30.81 | 869.46 | 31.32 | -7.82 | | Parts and Others | 574.75 | 22.10 | 968.57 | 34.89 | -40.66 | | Drilling Engineering Services | 174.51 | 6.71 | 173.80 | 6.26 | 0.41 | | Marine Sector | 616.94 | 23.72 | 457.08 | 16.47 | 34.98 | | Fracturing Business | 433.42 | 16.66 | 307.09 | 11.06 | 41.14 | | Total | 2,601.07 | 100.00 | 2,776.00 | 100.00 | -6.30 | [Land Drilling Rigs](index=24&type=section&id=Land%20Drilling%20Rigs) Land Drilling Rigs business revenue decreased by 7.8% year-on-year, primarily driven by overseas markets, especially the Middle East, where significant orders were secured, while domestic market competitiveness was also enhanced - Land Drilling Rigs business revenue was **RMB 801.45 million**, a year-on-year decrease of **7.8%**, accounting for **30.8%** of total revenue[51](index=51&type=chunk)[54](index=54&type=chunk) - **92.3%** of Land Drilling Rigs business revenue came from overseas, with the Middle East accounting for **85.2%**, and multiple significant orders secured in the Middle East[54](index=54&type=chunk) - Domestically, the Group won a drilling rig project for a certain coalfield geological oil and gas drilling and extraction company, enhancing market competitiveness[54](index=54&type=chunk) [Parts and Others](index=26&type=section&id=Parts%20and%20Others) Revenue from Parts and Others business decreased by 40.7% due to proactive business structure adjustments, focusing on streamlining low-margin operations, while achieving a 3.3 percentage point increase in gross margin and securing new orders for high-pressure mud pumps and photovoltaic power generation projects - Revenue from Parts and Others business was **RMB 574.75 million**, a year-on-year decrease of **40.7%**, accounting for **22.1%** of total revenue, primarily due to the company's proactive adjustment of its business structure and streamlining of low-margin businesses[51](index=51&type=chunk)[56](index=56&type=chunk) - During the reporting period, the gross margin of Parts and Others business increased by **3.3 percentage points** compared to the same period last year[56](index=56&type=chunk) - High-pressure mud pumps received **49 bulk orders** from domestic and international markets, and successfully secured an order for Sinopec's oil production platform new energy photovoltaic power generation project[56](index=56&type=chunk) [Drilling Engineering Services](index=26&type=section&id=Drilling%20Engineering%20Services) Drilling Engineering Services revenue saw a slight increase of 0.4% year-on-year, with six self-owned drilling rigs deployed in the Middle East operating at full capacity, and domestic projects demonstrating stable performance and advanced technology - Drilling Engineering Services revenue was **RMB 174.51 million**, a year-on-year increase of **0.4%**, accounting for **6.7%** of total revenue[51](index=51&type=chunk)[57](index=57&type=chunk) - The Group deployed **6 self-owned drilling rigs** in the Middle East, with overall production tasks at full capacity and project execution progressing steadily[57](index=57&type=chunk) - Domestic projects utilized intelligent drilling rigs on a Sinopec Chongqing shale gas platform in Nanchuan, demonstrating stable equipment performance and advanced technology[57](index=57&type=chunk) [Marine Sector](index=27&type=section&id=Marine%20Sector) The Marine Sector experienced significant revenue growth of 35.0% year-on-year, driven by a substantial increase in new effective orders, particularly in offshore oil and gas and marine engineering equipment manufacturing - Marine Sector revenue was **RMB 616.94 million**, a year-on-year increase of **35.0%**, accounting for **23.7%** of total revenue, with new effective orders significantly up by **63%** compared to the same period last year[51](index=51&type=chunk)[59](index=59&type=chunk) - The Offshore Oil & Gas and Marine Engineering Equipment Manufacturing business unit recorded revenue of **RMB 263.19 million**, a significant increase of **1,171.4%** compared to the same period last year[59](index=59&type=chunk) [Offshore Wind Power](index=28&type=section&id=Offshore%20Wind%20Power) Offshore Wind Power business revenue decreased by 18.9% but the company maintains a leading position in the large jacket foundation market, securing new orders and expanding its client base - Offshore Wind Power business revenue was **RMB 353.75 million**, a year-on-year decrease of **18.9%**, accounting for **57.3%** of Marine Sector business revenue[60](index=60&type=chunk)[61](index=61&type=chunk) - The company has secured a leading position in China's offshore wind power large jacket foundation sub-market[61](index=61&type=chunk) - New effective orders amounted to approximately **RMB 800 million**, including **38 sets of large offshore wind jacket foundation orders**, and new clients such as Mingyang BASF and Guangdong Institute were developed[61](index=61&type=chunk) [Offshore Oil & Gas and Marine Engineering Equipment Manufacturing](index=29&type=section&id=Offshore%20Oil%20%26%20Gas%20and%20Marine%20Engineering%20Equipment%20Manufacturing) Revenue from Offshore Oil & Gas and Marine Engineering Equipment Manufacturing significantly increased by 1,171.4%, driven by new orders for offshore workover rigs, OCV vessels for Middle Eastern clients, and entry into the high-end scientific research vessel construction market - Revenue from Offshore Oil & Gas Equipment and Special Vessels business was **RMB 263.19 million**, a significant increase of **1,171.4%** compared to the same period in 2024[60](index=60&type=chunk)[63](index=63&type=chunk) - Successfully signed an offshore workover rig order with a domestic client and secured **6 OCV vessel orders** from Middle Eastern clients, achieving a breakthrough in special vessel exports[63](index=63&type=chunk) - Signed a shipbuilding engineering sub-procurement contract exceeding **RMB 240 million** with a domestic vessel operation and management company, successfully entering the high-end scientific research vessel construction market[63](index=63&type=chunk) [Fracturing Business](index=30&type=section&id=Fracturing%20Business) Fracturing Business revenue significantly increased by 41.1%, entirely from the domestic market, driven by substantial growth in fracturing equipment sales and services, successful application of electric fracturing, and expansion to new clients - Fracturing Business revenue was **RMB 433.42 million**, a significant year-on-year increase of **41.1%**, accounting for **16.7%** of total revenue, entirely from the domestic market[51](index=51&type=chunk)[64](index=64&type=chunk) - Revenue from fracturing equipment sales and fracturing services recorded **RMB 328.30 million**, a significant year-on-year increase of **64.7%**, with gross profit significantly increasing by **RMB 57.62 million**[64](index=64&type=chunk)[65](index=65&type=chunk) - Completed approximately **1,800 fracturing stages**, achieved the first application of electric fracturing in Xinjiang Tarim, and expanded to **8 new clients**[64](index=64&type=chunk) [Talent Development](index=31&type=section&id=Talent%20Development) As of June 30, 2025, the Group had a total of 2,830 employees. The company comprehensively promotes high-quality talent team building through targeted recruitment of high-end technical talents for emerging industries, strengthening job rotation and exchanges, conducting numerous training sessions, and implementing incentive measures such as performance-linked remuneration and project profit sharing - As of June 30, 2025, the Group had a total of **2,830 employees**[66](index=66&type=chunk) - Focusing on supporting the development of strategic emerging industries, the Group specifically introduced high-end technical talents for emerging industries, forming technical talent teams in areas such as equipment intelligence, management digitalization, and marine engineering equipment[66](index=66&type=chunk) - During the period, a total of **392 training sessions** were conducted, covering technology, skill enhancement, legal risk compliance, quality and safety, financial literacy, and employee management[66](index=66&type=chunk) - Implemented incentive measures such as project profit sharing, linking employee income to performance, ensuring that total compensation growth is synchronized with economic benefits[66](index=66&type=chunk) [Future Outlook](index=31&type=section&id=Future%20Outlook) [Industry Trends and Company Strategy](index=31&type=section&id=Industry%20Trends%20and%20Company%20Strategy) Facing uncertainties and new opportunities in the global oil and gas development industry in the second half of 2025, Honghua Group will continuously improve its global operational system and form a 'equipment + services' dual-driven competitive advantage by accelerating business structure optimization and upgrading, focusing on core technological breakthroughs, and striving to enhance operational efficiency - In the second half of 2025, the global oil and gas development industry faces multiple factors including supply-demand structural adjustments, oil price fluctuations, and a complex and changing policy environment[67](index=67&type=chunk) - The Group will focus on accelerating business structure optimization and upgrading, concentrating on core technological breakthroughs, and striving to enhance operational efficiency[67](index=67&type=chunk) - The goal is to gradually form a 'equipment + services' dual-driven competitive advantage[67](index=67&type=chunk) [Accelerate Business Structure Optimization and Upgrading](index=31&type=section&id=Accelerate%20Business%20Structure%20Optimization%20and%20Upgrading) To mitigate industry fluctuations, the Group will stabilize its three core businesses—Land Drilling Rigs, Parts and Others, and Drilling Engineering Services—reshape the Fracturing Business segment while expanding overseas markets, and build the Marine Sector as its 'second growth curve'. The company will continue to strengthen its presence in the Middle East market, cultivate emerging markets, and comprehensively enhance its comprehensive solution service competitiveness, including spare parts services, global service center operations, and API Q2 certification advantages - Gradually form an industry development pattern driven by 'equipment + services' with mutual empowerment[68](index=68&type=chunk) - Stabilize the three major businesses of Land Drilling Rigs, Parts and Others, and Drilling Engineering Services, reshape the Fracturing Business segment and accelerate breakthroughs in overseas markets, and build the Marine Sector business as the 'second growth curve'[68](index=68&type=chunk)[69](index=69&type=chunk) - Continue to strengthen and expand the Middle East market, cultivate emerging markets, and continuously enhance offshore wind power market expansion[69](index=69&type=chunk) - Comprehensively enhance the competitiveness of comprehensive solution services, including improving spare parts service sales capabilities, operating global service centers, and leveraging API Q2 certification advantages to expand overseas markets[70](index=70&type=chunk) [Focus on Core Technology Breakthroughs](index=32&type=section&id=Focus%20on%20Core%20Technology%20Breakthroughs) The Group will maintain an R&D investment intensity of approximately 5%, actively respond to national deep-earth and deep-sea strategies, and focus on technological segments such as drilling and completion equipment, marine engineering equipment, digital products, and new energy. Key efforts include advancing Intelligent Drilling Rig 2.0 and iterative upgrades of electric fracturing systems, achieving new breakthroughs in the oil and gas field new energy market, and strengthening digital governance and innovation talent assurance systems - Actively embrace national deep-earth and deep-sea strategies, focusing on technological segments such as drilling and completion equipment, marine engineering equipment, digital products, and new energy[71](index=71&type=chunk) - Key efforts include advancing the R&D of **Intelligent Drilling Rig 2.0** and national deep-earth drilling rig research projects, and promoting pump efficiency improvement and system performance iterative upgrades in the electric fracturing field[71](index=71&type=chunk) - In the new energy sector, closely follow Dongfang Electric Group's new energy product lines, striving for new breakthroughs in the oil and gas field new energy market[71](index=71&type=chunk) - Will continue to maintain an R&D investment intensity of approximately **5%**, strengthen the supporting role of technological innovation, and promote industrial development towards high-end, intelligent, and green directions[72](index=72&type=chunk) - Strengthen the innovation talent assurance system, focusing on introducing industry technical experts in marine engineering, digitalization, and other fields, and strengthening the development of a diversified and international talent team[72](index=72&type=chunk) [Financial Review](index=33&type=section&id=Financial%20Review) [Overall Financial Performance](index=33&type=section&id=Overall%20Financial%20Performance) In the first half of 2025, Honghua Group achieved significant growth in gross profit and profit attributable to owners of the Company, with improvements in both gross margin and net margin, steadily enhancing profitability through optimized cost management and improved operational efficiency amidst a complex external environment | Indicator | First half of 2025 | First half of 2024 | | :--- | :--- | :--- | | Gross profit | Approximately RMB 339 million | Approximately RMB 302 million | | Profit attributable to owners of the Company | Approximately RMB 37 million | Approximately RMB 2 million | | Gross margin | 13.0% | 10.9% | | Net margin | 1.4% | 0.1% | - Profitability steadily improved, primarily benefiting from optimized cost management and reduced financing costs[73](index=73&type=chunk) [Revenue](index=33&type=section&id=Revenue) Revenue for the period was approximately RMB 2.601 billion, a year-on-year decrease of 6.3%, primarily due to the company's proactive adjustment of its business structure, focusing on core business segments to enhance overall profitability | Indicator | First half of 2025 | First half of 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | Approximately RMB 2.601 billion | Approximately RMB 2.776 billion | -6.3% | - The main reason for the revenue decrease was the company's proactive adjustment of its business structure, focusing on core business segments[74](index=74&type=chunk) [Cost of Sales](index=33&type=section&id=Cost%20of%20Sales) Cost of sales for the period was approximately RMB 2.262 billion, a year-on-year decrease of 8.6%, primarily influenced by reduced sales revenue, while optimized product structure, improved production efficiency, and cost reduction measures also enhanced profitability | Indicator | First half of 2025 | First half of 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Cost of sales | Approximately RMB 2.262 billion | Approximately RMB 2.474 billion | -8.6% | - The decrease in cost of sales was mainly influenced by reduced sales revenue, coupled with effective implementation of product structure optimization, improved production efficiency, and cost reduction measures[75](index=75&type=chunk) [Gross Profit and Gross Margin](index=34&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit for the period was approximately RMB 339 million, a year-on-year increase of 12.3%, with gross margin improving by 2.1 percentage points to 13.0%. This was primarily due to the expanded scale and improved efficiency of fracturing services, rapid growth in the marine sector, and optimized product structure | Indicator | First half of 2025 | First half of 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Gross profit | Approximately RMB 339 million | Approximately RMB 302 million | 12.3% | | Gross margin | 13.0% | 10.9% | Increased by 2.1 percentage points | - The increase in gross margin was primarily due to the significant expansion and improved efficiency of fracturing services, rapid growth in the marine sector, and optimized product structure[76](index=76&type=chunk) [Period Expenses](index=34&type=section&id=Period%20Expenses) Distribution expenses decreased year-on-year, administrative expenses increased due to higher staff salaries and property fees, R&D expenses significantly grew to meet the demand for equipment automation, digitalization, and intelligence, and net finance costs substantially decreased due to improved financing structure | Expense Category | First half of 2025 (RMB billions) | First half of 2024 (RMB billions) | Change (%) | | :--- | :--- | :--- | :--- | | Distribution expenses | 0.75 | 0.80 | -6.8% | | Administrative expenses | 1.43 | 1.30 | 9.9% | | R&D expenses | 0.77 | 0.58 | 31.8% | | Net finance costs | 0.41 | 0.69 | -40.5% | - Total R&D investment was **RMB 146 million**, a year-on-year increase of **10.6%**, to meet the development needs for automation, digitalization, and intelligence of drilling and extraction equipment[77](index=77&type=chunk) - Net finance costs significantly decreased, primarily benefiting from continuous improvement in financing structure and optimized financing costs[77](index=77&type=chunk) [Profit Before Income Tax](index=34&type=section&id=Profit%20Before%20Income%20Tax) Profit before income tax for the period was approximately RMB 38 million, an increase of RMB 26 million compared to the RMB 12 million profit in the same period last year, indicating a significant improvement in profitability | Indicator | First half of 2025 | First half of 2024 | Change (RMB billions) | | :--- | :--- | :--- | :--- | | Profit before income tax | Approximately RMB 38 million | Approximately RMB 12 million | Increased by 0.026 billion | [Income Tax Expense](index=35&type=section&id=Income%20Tax%20Expense) Income tax expense for the period was approximately RMB 1 million, a significant decrease of RMB 14 million compared to RMB 15 million in the same period last year | Indicator | First half of 2025 | First half of 2024 | Change (RMB billions) | | :--- | :--- | :--- | :--- | | Income tax expense | Approximately RMB 1 million | Approximately RMB 15 million | Decreased by 0.014 billion | [Profit/(Loss) for the Period](index=35&type=section&id=Profit%2F%28Loss%29%20for%20the%20Period) The Group achieved a profit of approximately RMB 37 million for the period, compared to a loss of approximately RMB 3 million in the same period last year, with net margin improving from 0.1% to 1.4%, indicating a significant improvement in operating performance | Indicator | First half of 2025 | First half of 2024 | | :--- | :--- | :--- | | Profit/(Loss) for the period | Approximately RMB 37 million | Approximately RMB (3) million | | Net margin | 1.4% | 0.1% | - Profit attributable to owners of the Company was approximately **RMB 37 million**, while loss attributable to non-controlling interests was approximately **RMB 1 million**[80](index=80&type=chunk) [Non-HKFRS Financial Measures](index=35&type=section&id=Non-HKFRS%20Financial%20Measures) EBITDA for the period was approximately RMB 260 million, a year-on-year increase, with EBITDA margin improving to 10.0%, reflecting the Group's continuous enhancement of profitability and significant improvement in operating efficiency. EBITDA, as a non-HKFRS financial measure, helps compare operating performance across periods | Indicator | First half of 2025 | First half of 2024 | | :--- | :--- | :--- | | EBITDA | Approximately RMB 260 million | Approximately RMB 232 million | | EBITDA margin | 10.0% | 8.4% | - EBITDA growth was primarily due to the Group's continuous enhancement of profitability and significant improvement in operating efficiency[81](index=81&type=chunk) [Dividends](index=35&type=section&id=Dividends) For the six months ended June 30, 2025, the Board of Directors recommended no interim dividend, consistent with the prior year - The Board of Directors recommended no interim dividend for the six months ended June 30, 2025[82](index=82&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) [Funding Sources](index=35&type=section&id=Funding%20Sources) The Group's primary funding sources include cash generated from operations and bank loans - The Group's primary funding sources include cash generated from operations and bank loans[83](index=83&type=chunk) [Borrowings Status](index=36&type=section&id=Borrowings%20Status) As of June 30, 2025, the Group's total borrowings were approximately RMB 4.772 billion, an increase of RMB 622 million from the end of 2024. Current borrowings repayable within one year significantly increased by 57.9% to approximately RMB 3.334 billion | Indicator | June 30, 2025 (RMB billions) | December 31, 2024 (RMB billions) | Change (RMB billions) | | :--- | :--- | :--- | :--- | | Total borrowings | 4.772 | 4.150 | Increased by 0.622 billion | | Borrowings repayable within one year | 3.334 | 2.111 | Increased by 1.223 billion (57.9% increase) | [Deposits and Cash Flows](index=36&type=section&id=Deposits%20and%20Cash%20Flows) As of June 30, 2025, the Group's cash and cash equivalents were approximately RMB 1.356 billion, an increase of RMB 565 million from the end of 2024. During the period, net cash inflow from operating activities was RMB 94 million, net cash inflow from financing activities was RMB 539 million, and net cash outflow from investing activities was RMB 70 million | Indicator | June 30, 2025 (RMB billions) | December 31, 2024 (RMB billions) | | :--- | :--- | :--- | | Cash and cash equivalents | 1.356 | 0.791 | | Net cash inflow from operating activities | 0.094 | - | | Net cash outflow from investing activities | 0.070 | - | | Net cash inflow from financing activities | 0.539 | - | [Asset and Liability Structure](index=36&type=section&id=Asset%20and%20Liability%20Structure) [Asset Structure and Changes](index=36&type=section&id=Asset%20Structure%20and%20Changes) As of June 30, 2025, the Group's total assets were approximately RMB 12.711 billion. Current assets accounted for 68.6% of total assets, increasing by RMB 1.083 billion, primarily due to increases in contract assets and cash and cash equivalents; non-current assets decreased by RMB 301 million, mainly due to reductions in property, plant, and equipment and trade and other receivables | Indicator | June 30, 2025 (RMB billions) | December 31, 2024 (RMB billions) | | :--- | :--- | :--- | | Total assets | 12.711 | 11.928 | | Current assets | 8.717 | 7.634 | | Non-current assets | 3.994 | 4.295 | - Current assets increased by **RMB 1.083 billion**, primarily due to increases in contract assets and cash and cash equivalents[86](index=86&type=chunk) - Non-current assets decreased by **RMB 301 million**, mainly due to reductions in property, plant, and equipment and trade and other receivables[86](index=86&type=chunk) [Liabilities Structure and Changes](index=36&type=section&id=Liabilities%20Structure%20and%20Changes) As of June 30, 2025, the Group's total liabilities were approximately RMB 9.055 billion, with current liabilities accounting for 83.2% and increasing by RMB 1.395 billion. The asset-liability ratio increased by 1.9 percentage points to 71.2% | Indicator | June 30, 2025 (RMB billions) | December 31, 2024 (RMB billions) | | :--- | :--- | :--- | | Total liabilities | 9.055 | 8.264 | | Total current liabilities | 7.538 | 6.143 | | Total non-current liabilities | 1.517 | 2.120 | | Asset-liability ratio | 71.2% | 69.3% | - Total current liabilities increased by **RMB 1.395 billion**, while total non-current liabilities decreased by **RMB 603 million**[87](index=87&type=chunk) [Equity Structure and Changes](index=36&type=section&id=Equity%20Structure%20and%20Changes) As of June 30, 2025, the Group's total equity was approximately RMB 3.655 billion, a slight decrease from the end of 2024. Both equity attributable to owners of the Company and non-controlling interests saw minor declines. Basic and diluted earnings per share were both RMB 0.41 cents | Indicator | June 30, 2025 (RMB billions) | December 31, 2024 (RMB billions) | | :--- | :--- | :--- | | Total equity | 3.655 | 3.665 | | Total equity attributable to owners of the Company | 3.461 | 3.470 | | Total non-controlling interests | 0.194 | 0.195 | | Basic earnings per share (RMB cents) | 0.41 | 0.03 | | Diluted earnings per share (RMB cents) | 0.41 | 0.03 | - Total equity decreased by **RMB 10 million**, and total equity attributable to owners of the Company decreased by **RMB 9 million**[88](index=88&type=chunk) [Other Information](index=37&type=section&id=Other%20Information) [Major Acquisitions or Disposals of Subsidiaries, Associates, and Joint Ventures](index=37&type=section&id=Major%20Acquisitions%20or%20Disposals) During the period, the Group had no major acquisitions or disposals of subsidiaries, associates, or joint ventures - The Group had no major acquisitions or disposals of subsidiaries, associates, or joint ventures during the period[89](index=89&type=chunk) [Capital Expenditure and Major Investments and Commitments](index=37&type=section&id=Capital%20Expenditure%20and%20Major%20Investments%20and%20Commitments) Total capital expenditure for the period was approximately RMB 52 million, primarily for infrastructure and technological upgrades. Capital expenditure for the second half of 2025 is estimated at approximately RMB 196 million, with capital commitments of RMB 29 million for business and capacity optimization adjustments | Indicator | First half of 2025 (RMB billions) | First half of 2024 (RMB billions) | Change (RMB billions) | | :--- | :--- | :--- | :--- | | Total capital expenditure | 0.052 | 0.070 | Decreased by 0.018 billion | - For the second half of 2025, the Group anticipates capital expenditure of approximately **RMB 196 million**, primarily for infrastructure and technological upgrades[90](index=90&type=chunk) - As of June 30, 2025, the Group had capital commitments of approximately **RMB 29 million** for optimizing and adjusting the Group's business and production capacity[90](index=90&type=chunk) [Foreign Exchange Risk](index=37&type=section&id=Foreign%20Exchange%20Risk) The Group faces foreign exchange risks arising from multiple currencies (primarily USD, HKD, AED, and RMB), and management has established policies to monitor and consider hedging significant foreign exchange risks when necessary - The Group is exposed to foreign exchange risks arising from various currencies, primarily involving **USD, HKD, AED, and RMB**[92](index=92&type=chunk) - Management has established policies requiring Group companies to manage foreign exchange risks related to their functional currencies and to consider hedging significant foreign exchange risks when necessary[92](index=92&type=chunk) [Contingent Liabilities](index=37&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - The Group had no significant contingent liabilities as of June 30, 2025[93](index=93&type=chunk) [Pledges and Guarantees](index=37&type=section&id=Pledges%20and%20Guarantees) Details of the Group's pledges and guarantees are provided in Note 10 (Borrowings) to the financial statements - Details of the Group's pledges and guarantees are provided in Note **10** to the financial statements[94](index=94&type=chunk) [Purchase, Sale or Repurchase of Listed Securities](index=37&type=section&id=Purchase%2C%20Sale%20or%20Repurchase%20of%20Listed%20Securities) As of June 30, 2025, the Company held no treasury shares, and neither the Company nor its subsidiaries purchased, sold, or repurchased any of the Company's shares - As of June 30, 2025, the Company held no treasury shares[95](index=95&type=chunk) - During the period, neither the Company nor its subsidiaries purchased, sold, or repurchased any of the Company's shares[96](index=96&type=chunk) [Events After Reporting Period](index=38&type=section&id=Events%20After%20Reporting%20Period_2) From the end of the reporting period on June 30, 2025, to the date of this announcement, no significant events occurred that had any material impact on the Group - From the end of the reporting period on June 30, 2025, to the date of this announcement, no significant events occurred that had any material impact on the Group[97](index=97&type=chunk) [Corporate Governance and Other Disclosures](index=38&type=section&id=Corporate%20Governance%20and%20Other%20Disclosures) [Audit Committee](index=38&type=section&id=Audit%20Committee) The Company's Audit Committee was established in accordance with the Listing Rules, responsible for reviewing and overseeing financial reporting, internal control, and risk management, and has reviewed the unaudited interim financial report for the period - The Audit Committee was established in accordance with Rules **3.21** and **3.22** of the Listing Rules[98](index=98&type=chunk) - Its primary responsibilities include reviewing and overseeing the adequacy and effectiveness of the Company's financial reporting system, internal control, and risk management systems and related procedures[98](index=98&type=chunk) - The Audit Committee has reviewed the unaudited interim financial report of the Company and the Group for the six months ended June 30, 2025[98](index=98&type=chunk) [Compliance with Corporate Governance Code](index=38&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company has adopted and complied with all code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules, and will continue to review to maintain a high standard of corporate governance - The Company has adopted and complied with the principles and code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules[99](index=99&type=chunk) - For the six-month period from **January 1, 2025, to June 30, 2025**, the Company has complied with all code provisions of the Corporate Governance Code[99](index=99&type=chunk) [Standard Code for Directors' Securities Transactions](index=38&type=section&id=Standard%20Code%20for%20Directors'%20Securities%20Transactions) The Company has adopted a code for directors' securities transactions no less stringent than the Standard Code set out in Appendix C3 of the Listing Rules, with all directors confirming compliance. Additionally, the company has established written guidelines for employees with inside information, and no non-compliance incidents were noted during the reporting period - The Company has adopted a code for directors' dealings in the Company's securities, the terms of which are no less exacting than those set out in the Standard Code in Appendix C3 of the Listing Rules[101](index=101&type=chunk) - All Directors have confirmed that they have complied with the Securities Dealing Code and the Standard Code throughout the six-month reporting period ended June 30, 2025[102](index=102&type=chunk) - The Company has also established written guidelines for employees' dealings in securities, and no incidents of non-compliance by employees were noted during the reporting period[102](index=102&type=chunk)[103](index=103&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=39&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This results announcement has been published on the Company's website and the Stock Exchange's website, and the interim report will be dispatched to shareholders and published on the aforementioned websites in due course - This results announcement is published on the Company's website (www.hh-gltd.com) and the Stock Exchange's website (www.hkexnews.hk)[104](index=104&type=chunk) - The Company's interim report for the six months ended June 30, 2025, will be dispatched to the Company's shareholders and published on the aforementioned websites in due course[104](index=104&type=chunk) [Definitions](index=39&type=section&id=Definitions) This report provides definitions for key terms, including 'Audit Committee', 'Board', 'Corporate Governance Code', 'Securities Dealing Code', 'Company', 'Directors', 'Group', 'HKD', 'Hong Kong', 'Listing Rules', 'Standard Code', 'Period', 'PRC', 'RMB', 'Last Corresponding Period', 'Shares', 'Stock Exchange', and 'USD' - This report provides definitions for key terms to ensure consistent understanding of the report's content[105](index=105&type=chunk)[106](index=106&type=chunk)

財務摘要 未經審計 截至以下年度止六個月 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不會就本公告全部或任何部分內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 CaoCao Inc. 曹操出行有限公司 （於開曼群島註冊成立的有限公司） （股份代號：02643） 截至2025年6月30日止六個月之中期業績公告 曹操出行有限公司董事會欣然公佈本集團截至2025年6月30日止六個月之未經審 計合併中期業績，連同截至2024年6月30日止六個月之比較數字，已經董事會審 核委員會審閱。 | | 截至6月30日止六個月 | | 同比變動 | | --- | --- | --- | --- | | | 2025年 | 2024年 | % | | GTV（人民幣百萬元） | 10,954 | 7,132 | 53.6 | | 訂單量（千計） | 379,505 | 254,766 | 49.0 | | AOV（人民幣元） | 28.9 | 28.0 | 3.2 | | 日訂單量（千計） | 2,108 | 1,400 | 50.6 | ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 SHANGHAI JUNSHI BIOSCIENCES CO., LTD.* 上海君實生物醫藥科技股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：1877） 截至2025年6月30日止六個月的 中期業績公告 上海君實生物醫藥科技股份有限公司（「本公司」）董事（「董事」）會（「董事會」）謹 此宣佈本公司及其附屬公司（「本集團」）截至2025年6月30日止六個月（「報告期」） 的未經審核簡明綜合中期業績及2024年同期的比較數字。本集團於報告期的未經 審核簡明綜合財務報表已由本公司審計委員會（「審計委員會」）及本公司核數師德 勤•關黃陳方會計師行審閱。除非另有說明，否則本公告的財務數據乃根據國際財 務報告準則（「國際財務報告準則」）編製。 於本公告中，「我們」指本公司，如文意另有所指，則指本集團。 財務摘要 1 • 截至2025年6月30日，報告期內本集團收入總額約人民幣1,168百萬 ...

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倚賴該等內 容而引致的任何損失承擔任何責任。 （於開曼群島註冊成立之有限公司） （股份代號：01164） 截至2025年6月30日止六個月之中期業績公告 | 摘要 | | | | --- | --- | --- | | | （未經審核） | | | | 截至6月30日止六個月 | | | | 2025年 | 2024年 | | | 千港元 | 千港元 | | 營業額 | 1,708,681 | 4,072,652 | | 本公司擁有人應佔（虧損）╱溢利 | (67,570) | 113,122 | | 每股（虧損）╱盈利 | | | | －基本 | (0.89)港仙 | 1.49港仙 | | －攤薄 | (0.89)港仙 | 1.49港仙 | | 每股中期股息 | 無 | 0.3港仙 | | • 報告期內本集團營業額約1,709百萬港元，較2024年同期下降約58%。 | | | | • 報告期內本公司擁有人應佔虧損約68百萬港元，較2024年同期 ...

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) The Group achieved significant financial improvement for the six months ended June 30, 2025, with 4.8% revenue growth and a turnaround to a profit of RMB 15,702 thousand Financial Highlights (RMB thousand) | Indicator | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 749,658 | 715,208 | | Gross Profit | 49,910 | 44,334 | | Profit/(Loss) Before Income Tax | 18,444 | (99,163) | | Profit/(Loss) for the Period | 15,702 | (123,868) | | Total Comprehensive Income/(Loss) for the Period Attributable to Owners of the Company | 13,563 | (106,011) | | Basic and Diluted Earnings/(Loss) Per Share (RMB cents) | 1.92 | (15.12) | | **Statement of Financial Position (Period-end):** | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | Total Assets | 3,298,688 | 3,347,474 | | Total Equity | 710,484 | 696,921 | [Condensed Consolidated Interim Financial Statements](index=2&type=section&id=Interim%20Results%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025) This section presents the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025, detailing the Group's financial position and performance - The Board approved the unaudited consolidated interim results for the six months ended June 30, 2025, on August 26, 2025[3](index=3&type=chunk) [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 reported RMB 749,658 thousand revenue and RMB 15,702 thousand profit, a significant improvement Condensed Consolidated Interim Statement of Comprehensive Income (RMB thousand) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 749,658 | 715,208 | | Cost of Sales | (699,748) | (670,874) | | Gross Profit | 49,910 | 44,334 | | Operating Profit/(Loss) | 26,421 | (89,789) | | Profit/(Loss) Before Income Tax | 18,444 | (99,163) | | Income Tax Expense | (2,742) | (24,705) | | Profit/(Loss) for the Period | 15,702 | (123,868) | | Total Comprehensive Income/(Loss) for the Period Attributable to Owners of the Company | 13,563 | (106,011) | | Basic and Diluted Earnings/(Loss) Per Share | 1.92 | (15.12) | [Condensed Consolidated Interim Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets were RMB 3,298,688 thousand, with total equity increasing to RMB 710,484 thousand Condensed Consolidated Interim Statement of Financial Position (RMB thousand) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Assets:** | | | | Non-current Assets | 752,959 | 680,641 | | Current Assets | 2,545,729 | 2,666,833 | | Total Assets | 3,298,688 | 3,347,474 | | **Equity:** | | | | Total Equity | 710,484 | 696,921 | | **Liabilities:** | | | | Non-current Liabilities | 111,396 | 176,221 | | Current Liabilities | 2,476,808 | 2,474,332 | | Total Liabilities | 2,588,204 | 2,650,553 | | Total Equity and Total Liabilities | 3,298,688 | 3,347,474 | [Notes to the Condensed Consolidated Interim Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section provides detailed notes to the condensed consolidated interim financial statements, offering deeper context and explanation for the financial data [1 General Information](index=6&type=section&id=1%20General%20Information) Wison Offshore & Marine Co., Ltd. is a Cayman Islands-incorporated investment holding company listed on the HKEX, operating in marine and municipal engineering - The Company is incorporated in the Cayman Islands as an investment holding company, with its subsidiaries primarily engaged in marine construction and municipal engineering in mainland China and Southeast Asia[7](index=7&type=chunk) - The Company's shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on November 19, 2018[7](index=7&type=chunk) [2 Basis of Preparation](index=7&type=section&id=2%20Basis%20of%20Preparation) The condensed consolidated interim financial statements are prepared under HKAS 34, with consistent accounting policies and no significant impact from new standards, except for HKFRS 18 still under assessment - The condensed consolidated interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting[10](index=10&type=chunk) - The new and amended standards adopted by the Group have not had any significant impact on the amounts recognized in prior periods and are not expected to have a significant impact on the current or future periods[12](index=12&type=chunk) - Hong Kong Financial Reporting Standard 18 (Presentation and Disclosure in Financial Statements) is expected to primarily affect the presentation of the consolidated statement of comprehensive income, and the Group is still assessing its impact[13](index=13&type=chunk)[14](index=14&type=chunk) [3 Segment Information](index=8&type=section&id=3%20Segment%20Information) The Group's business is segmented into marine and municipal engineering, with detailed financial performance and asset information provided by segment and region [3 (a) Description of Segments and Principal Activities](index=8&type=section&id=3%20%28a%29%20Description%20of%20Segments%20and%20Principal%20Activities) The Group's two reportable segments are marine construction, encompassing port and waterway projects, and municipal engineering, covering urban infrastructure and landscaping - The Group's two reportable segments are marine construction (including port infrastructure construction, waterway engineering and other services) and municipal engineering construction (including urban public infrastructure construction, urban greening and building construction)[16](index=16&type=chunk) [3 (b) Segment Results and Other Information](index=9&type=section&id=3%20%28b%29%20Segment%20Results%20and%20Other%20Information) In H1 2025, marine construction revenue was RMB 244,471 thousand and municipal engineering revenue was RMB 505,187 thousand, with varied performance across segments Segment Results for the Six Months Ended June 30, 2025 (RMB thousand) | Indicator | Marine Construction | Municipal Engineering Construction | Total | | :--- | :--- | :--- | :--- | | Revenue | 244,471 | 505,187 | 749,658 | | Cost of Sales | (212,276) | (487,472) | (699,748) | | Gross Profit | 32,195 | 17,715 | 49,910 | | Total Segment Assets as of June 30, 2025 | 1,251,854 | 2,149,504 | 3,298,688 | | Total Segment Liabilities as of June 30, 2025 | 816,659 | 1,874,215 | 2,588,204 | Segment Results for the Six Months Ended June 30, 2024 (RMB thousand) | Indicator | Marine Construction | Municipal Engineering Construction | Total | | :--- | :--- | :--- | :--- | | Revenue | 300,050 | 415,158 | 715,208 | | Cost of Sales | (272,740) | (398,134) | (670,874) | | Gross Profit | 27,310 | 17,024 | 44,334 | | Total Segment Assets as of December 31, 2024 | 1,357,587 | 2,129,116 | 3,347,474 | | Total Segment Liabilities as of December 31, 2024 | 915,493 | 1,874,289 | 2,650,553 | [3 (c) Revenue from Contracts with Customers and Cost of Sales](index=11&type=section&id=3%20%28c%29%20Revenue%20from%20Contracts%20with%20Customers%20and%20Cost%20of%20Sales) In H1 2025, China's revenue was RMB 693,552 thousand with significant growth, while Southeast Asia's revenue was RMB 56,106 thousand with substantial declines Revenue and Cost of Sales by Geographical Region (RMB thousand) | Region | H1 2025 Revenue | H1 2025 Cost of Sales | H1 2025 Gross Profit | H1 2024 Revenue | H1 2024 Cost of Sales | H1 2024 Gross Profit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | China | 693,552 | (648,603) | 44,949 | 562,175 | (528,696) | 33,479 | | Southeast Asia | 56,106 | (51,145) | 4,961 | 153,033 | (142,178) | 10,855 | [3 (d) Segment Assets by Geographical Region](index=11&type=section&id=3%20%28d%29%20Segment%20Assets%20by%20Geographical%20Region) As of June 30, 2025, non-current assets totaled RMB 70,606 thousand, with China at RMB 67,371 thousand and Southeast Asia at RMB 3,235 thousand Non-current Assets by Geographical Region (RMB thousand) | Region | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | China | 67,371 | 72,325 | | Southeast Asia | 3,235 | 2,208 | | Total | 70,606 | 74,533 | [3 (e) Contract Assets and Liabilities](index=12&type=section&id=3%20%28e%29%20Contract%20Assets%20and%20Liabilities) As of June 30, 2025, total contract assets were RMB 785,795 thousand, decreasing from 2024, while total contract liabilities significantly increased to RMB 166,220 thousand Contract Assets and Liabilities (RMB thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Contract Assets | 785,795 | 840,762 | | Total Contract Liabilities | 166,220 | 69,065 | | **Contract Assets (Current Portion):** | | | | Marine Construction | 114,494 | 172,356 | | Municipal Engineering Construction | 147,029 | 220,203 | | Less: Impairment Provision | (16,757) | (20,869) | | **Contract Assets (Non-current Portion):** | | | | Marine Construction | 47,431 | 24,258 | | Municipal Engineering Construction | 521,800 | 474,071 | | Less: Impairment Provision | (28,202) | (29,257) | | **Contract Liabilities:** | | | | Marine Construction | 61,137 | 9,916 | | Municipal Engineering Construction | 105,083 | 59,149 | [4 Income Tax Expense](index=13&type=section&id=4%20Income%20Tax%20Expense) H1 2025 income tax expense decreased significantly by 89.1% to RMB 2,742 thousand, mainly due to reduced deferred tax, with varying rates across jurisdictions Income Tax Expense (RMB thousand) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current Income Tax | 2,204 | 3,463 | | Deferred Income Tax | 538 | 21,242 | | Income Tax Expense — Net | 2,742 | 24,705 | - Chinese subsidiaries are subject to a corporate income tax rate of **25%**, with Shanghai Sanhang Benteng Offshore Engineering Co., Ltd. and Shanghai Wison Environmental Technology Co., Ltd. enjoying a preferential rate of **15%** as high-tech enterprises[28](index=28&type=chunk)[29](index=29&type=chunk) - Hong Kong profits tax rate is **16.5%**, Brunei income tax rate is **18.5%**, Indonesian construction service income tax rate is **2.65%** (2.65%-4% in 2024), Malaysian income tax rate is **24%**, and Saudi Arabian income tax rate is **20%**[27](index=27&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk) [5 Basic and Diluted Earnings/(Loss) Per Share](index=15&type=section&id=5%20Basic%20and%20Diluted%20Earnings%2F%28Loss%29%20Per%20Share) For H1 2025, basic earnings per share were **RMB 1.92 cents**, a turnaround from a **RMB 15.12 cents loss** in the prior period, with no dilution effect Basic and Diluted Earnings/(Loss) Per Share (RMB thousand) | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Profit/(Loss) Attributable to Owners of the Company (RMB thousand) | 15,702 | (123,868) | | Weighted Average Number of Ordinary Shares in Issue (thousand shares) | 819,008 | 819,008 | | Basic Earnings/(Loss) Per Share (RMB cents) | 1.92 | (15.12) | - As of June 30, 2025 and 2024, there were no dilutive potential ordinary shares outstanding, thus diluted earnings per share were the same as basic earnings per share[37](index=37&type=chunk) [6 Trade and Other Receivables](index=16&type=section&id=6%20Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables were RMB 1,898,094 thousand, with RMB 9,266 thousand of bills receivable pledged as collateral Trade and Other Receivables (RMB thousand) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables and Bills Receivable — Net | 975,560 | 1,190,972 | | Retention Receivables — Net | 269,477 | 263,310 | | Long-term Trade Receivables — Net | 38,602 | 42,176 | | Other Receivables | 329,239 | 233,503 | | Prepayments | 284,554 | 163,364 | | Prepaid Taxes | 662 | 4,588 | | Total | 1,898,094 | 1,897,913 | | Current Portion | 1,796,308 | 1,801,358 | | Non-current Portion | (101,786) | (96,555) | - As of June 30, 2025, bills receivable with a net carrying amount of **RMB 9,266 thousand** were pledged as collateral for the Group's bank borrowings (2024: RMB 20,208 thousand)[39](index=39&type=chunk) - As of June 30, 2025, the Group pledged long-term trade receivables with a carrying amount of approximately **RMB 40,830 thousand** for long-term bank borrowings of **RMB 7,000 thousand**[40](index=40&type=chunk) [7 Trade and Other Payables](index=19&type=section&id=7%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables decreased to RMB 2,054,187 thousand, including RMB 1,371,341 thousand in trade payables and bills Trade and Other Payables (RMB thousand) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Payables | 1,352,341 | 1,543,705 | | Bills Payable | 19,000 | 21,000 | | Retention Payables | 192,188 | 219,016 | | Long-term Payables | 191,490 | 184,725 | | Employee Salaries and Social Security | 18,526 | 20,635 | | Other Payables | 182,704 | 150,806 | | Other Tax Liabilities | 97,938 | 137,671 | | Total | 2,054,187 | 2,277,558 | | Current Portion | 1,993,588 | 2,109,717 | | Non-current Portion | (60,599) | (167,841) | Ageing Analysis of Trade Payables and Bills Payable (RMB thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 months | 119,016 | 265,693 | | 4 to 6 months | 288,632 | 267,195 | | 7 to 12 months | 313,157 | 318,465 | | 1 to 2 years | 258,152 | 291,577 | | 2 to 3 years | 111,400 | 131,263 | | Over 3 years | 280,984 | 290,512 | | Total | 1,371,341 | 1,564,705 | [8 Dividends](index=21&type=section&id=8%20Dividends) The Board does not recommend an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[44](index=44&type=chunk) [9 Commitments](index=22&type=section&id=9%20Commitments) As of June 30, 2025, the Group and Company had no significant capital commitments, with minimum operating lease payments of RMB 1,808 thousand - As of June 30, 2025, the Group and the Company had no significant capital commitments[45](index=45&type=chunk) Minimum Lease Payments Under Non-Cancellable Operating Leases (RMB thousand) | Term | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Not later than 1 year | 1,808 | 866 | | Later than 1 year but not later than 2 years | — | 129 | | Total | 1,808 | 995 | [10 Events After the Reporting Period](index=22&type=section&id=10%20Events%20After%20the%20Reporting%20Period) No other significant events occurred for the Company or Group after June 30, 2025 - The Company or the Group did not undertake any other significant events after June 30, 2025[48](index=48&type=chunk) [Management Discussion and Analysis](index=23&type=section&id=Management%20Discussion%20and%20Analysis) This section details the Group's H1 2025 business performance, market environment, and future strategies, highlighting revenue growth and a profit turnaround through enhanced project management [Business Review](index=23&type=section&id=Business%20Review) In H1 2025, the Group achieved a slight revenue rebound through enhanced project management, with marine construction at RMB 244.5 million and municipal engineering at RMB 505.2 million - In H1 2025, the Group continued to strengthen project management, achieving a slight revenue rebound despite intense market competition and contracting demand[50](index=50&type=chunk) Revenue Recognized During the Reporting Period (Unaudited, RMB million) | Segment | Revenue | | :--- | :--- | | Marine Construction | 244.5 | | Municipal Engineering Construction | 505.2 | | Total | 749.7 | [Future Plans and Prospects](index=23&type=section&id=Future%20Plans%20and%20Prospects) The Group plans to consolidate market share, expand into new businesses like environmental engineering, and optimize overseas presence for high-quality, sustainable development - The Group will further consolidate its leading advantages in the port, waterway, municipal, and construction industries, stabilize existing market share, adjust business development strategies as appropriate, actively explore new business markets, and gradually expand the proportion of environmental engineering business[53](index=53&type=chunk) - The Group will continue to optimize its overseas presence, further promote overseas business towards "high-quality, sustainable" development, leverage industry-leading advantages, strengthen cooperation, form synergies, and continuously enhance the Group's overall competitiveness[53](index=53&type=chunk) [Financial Overview](index=24&type=section&id=Financial%20Overview) This section reviews the Group's H1 2025 financial performance, covering revenue, costs, expenses, tax, receivables, payables, liquidity, capital structure, and asset pledges [Revenue](index=24&type=section&id=Revenue) H1 2025 consolidated revenue grew by **4.8%** to **RMB 749.7 million**, driven by improved project management, with China contributing **RMB 693.6 million** - The Group's consolidated revenue for H1 2025 was **RMB 749.7 million**, an increase of approximately **4.8%** year-on-year compared to RMB 715.2 million in the same period of the previous fiscal year[54](index=54&type=chunk) - The increase in revenue was primarily due to the Group's strengthened project management accelerating project progress[54](index=54&type=chunk) - Revenues from China and Southeast Asia in H1 2025 were recorded at **RMB 693.6 million** and **RMB 56.1 million**, respectively[54](index=54&type=chunk) [Cost of Sales and Gross Profit](index=24&type=section&id=Cost%20of%20Sales%20and%20Gross%20Profit) H1 2025 consolidated cost of sales increased by **4.3%** to **RMB 699.8 million**, while gross profit rose by **12.6%** to **RMB 49.9 million** - Consolidated cost of sales for H1 2025 was **RMB 699.8 million**, an increase of **4.3%** compared to RMB 670.9 million in H1 2024[55](index=55&type=chunk) - The Group's consolidated gross profit from principal activities was **RMB 49.9 million**, an increase of **12.6%** compared to RMB 44.3 million in H1 2024[56](index=56&type=chunk) - Costs of raw materials and consumables used increased by **8.5%**, and subcontracting costs decreased by **5.4%**, respectively[56](index=56&type=chunk) [Administrative Expenses](index=25&type=section&id=Administrative%20Expenses) H1 2025 administrative expenses decreased by **15.2%** to **RMB 36.7 million**, driven by personnel cost control and reassessed impairment provisions - Administrative expenses for H1 2025 were **RMB 36.7 million**, a decrease of **15.2%** compared to RMB 43.3 million in H1 2024[57](index=57&type=chunk) - The decrease was mainly due to strengthened personnel cost control and the reassessment of impairment provisions for investment properties[57](index=57&type=chunk) [Income Tax Expense](index=25&type=section&id=Income%20Tax%20Expense) H1 2025 income tax expense significantly decreased by **89.1%** to **RMB 2.7 million**, primarily due to reduced deferred income tax - The Group's income tax expense for H1 2025 was **RMB 2.7 million**, a decrease of **89.1%** compared to RMB 24.7 million in H1 2024[58](index=58&type=chunk) - The decrease was mainly attributable to a reduction in deferred income tax expenses during the reporting period[58](index=58&type=chunk) [Trade and Other Receivables](index=25&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, net trade and other receivables slightly increased to **RMB 1,898.1 million**, while net contract assets decreased by **RMB 55 million** - As of June 30, 2025, the Group's net trade and other receivables increased to **RMB 1,898.1 million** (December 31, 2024: RMB 1,897.9 million)[59](index=59&type=chunk) - The Group's net contract assets decreased by **RMB 55 million** from RMB 840.8 million as of December 31, 2024, to **RMB 785.8 million** as of June 30, 2025[59](index=59&type=chunk) [Trade and Other Payables](index=25&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, trade and other payables decreased to **RMB 2,054.2 million**, primarily due to the payment of amounts due - As of June 30, 2025, the Group's trade and other payables decreased to **RMB 2,054.2 million** (December 31, 2024: RMB 2,277.6 million)[60](index=60&type=chunk) - The decrease was mainly due to the payment of amounts due[60](index=60&type=chunk) [Liquidity, Capital Structure and Gearing Ratio](index=26&type=section&id=Liquidity%2C%20Capital%20Structure%20and%20Gearing%20Ratio) As of June 30, 2025, the Group maintained a healthy liquidity position with net current assets of **RMB 68.9 million** and cash of **RMB 371.4 million**, while the gearing ratio decreased to **78.5%** - As of June 30, 2025, the Group's net current assets and cash and cash equivalents were approximately **RMB 68.9 million** (December 31, 2024: RMB 192.5 million) and **RMB 371.4 million** (December 31, 2024: RMB 342.7 million), respectively[61](index=61&type=chunk) - The Group's gearing ratio (calculated as total liabilities divided by total assets) as of June 30, 2025, was **78.5%** (December 31, 2024: 79.2%)[61](index=61&type=chunk) - The Group's bank borrowings as of June 30, 2025, were **RMB 352.4 million** (December 31, 2024: RMB 280.5 million)[61](index=61&type=chunk) [Pledge of Assets](index=26&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group pledged **RMB 40.8 million** in long-term trade receivables and **RMB 9.3 million** in bills receivable as collateral for bank borrowings - As of June 30, 2025, the Group pledged long-term trade receivables with a carrying amount of approximately **RMB 40.8 million** for long-term bank borrowings of **RMB 7.0 million**[62](index=62&type=chunk) - As of June 30, 2025, bills receivable with a net carrying amount of **RMB 9.3 million** were pledged as collateral for the Group's bank borrowings of **RMB 9.3 million**[62](index=62&type=chunk) [Foreign Exchange](index=26&type=section&id=Foreign%20Exchange) The Group primarily transacts in major currencies like RMB, HKD, and USD, mitigating foreign exchange risk through contract and payment currency alignment without hedging - The Group's business primarily transacts in major currencies and has not adopted any hedging policy[63](index=63&type=chunk) - Foreign exchange risk is mitigated by using major currencies as the primary currency for contracts entered into with customers and for settling payments to suppliers and operating expenses[63](index=63&type=chunk) [Capital Expenditure and Commitments](index=27&type=section&id=Capital%20Expenditure%20and%20Commitments) The Group's capital expenditure is typically funded by operating cash flows, with no significant capital commitments as of June 30, 2025 - The Group generally funds its capital expenditure with cash flows from operations[64](index=64&type=chunk) - As of June 30, 2025, the Group had no significant capital commitments[65](index=65&type=chunk) [Contingent Liabilities](index=27&type=section&id=Contingent%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[66](index=66&type=chunk) [Significant Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=27&type=section&id=Significant%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) For H1 2025, the Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group had no significant acquisitions or disposals of subsidiaries, associates, and joint ventures[67](index=67&type=chunk) [Material Investments Held](index=27&type=section&id=Material%20Investments%20Held) As of June 30, 2025, the Group held no material investments and had no related future plans - As of June 30, 2025, the Group had no material investments or future plans regarding material investments or capital assets[68](index=68&type=chunk) [Interim Dividend](index=27&type=section&id=Interim%20Dividend) The Board resolved not to declare an interim dividend for H1 2025, prioritizing sufficient cash flow for operations and expansion - The Board resolved not to declare any dividend for the six months ended June 30, 2025[69](index=69&type=chunk) - This decision was primarily made to maintain sufficient cash flow for daily operations and expansion needs[69](index=69&type=chunk) [Employees and Remuneration Policy](index=27&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had **441 employees**, with remuneration based on local laws, and employee costs of approximately **RMB 30.2 million** for the period - As of June 30, 2025, the Group had **441 employees**[70](index=70&type=chunk) - All employee remuneration has been paid in accordance with relevant laws and regulations in China, Indonesia, Brunei, Malaysia, and Hong Kong[70](index=70&type=chunk) - During the reporting period, the Group's employee costs (including directors' emoluments) were approximately **RMB 30.2 million** (six months ended June 30, 2024: approximately RMB 38.2 million)[70](index=70&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=28&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the reporting period, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[72](index=72&type=chunk) [Corporate Governance Code](index=28&type=section&id=Corporate%20Governance%20Code) The Company has adopted and complied with all applicable code provisions of the Corporate Governance Code in Appendix C1 to the Listing Rules - The Company has adopted all code provisions in Part 2 of the Corporate Governance Code set out in Appendix C1 to the Listing Rules as its own corporate governance code and has complied with all applicable code provisions during the reporting period[73](index=73&type=chunk) [Standard Code for Securities Transactions by Directors](index=28&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) All Directors confirmed full compliance with the Standard Code for Securities Transactions by Directors of Listed Issuers during the reporting period - All Directors confirmed that they have fully complied with the Company's own code of conduct and the relevant provisions of the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules during the reporting period[74](index=74&type=chunk) [Audit Committee Review of Interim Results](index=28&type=section&id=Audit%20Committee%20Review%20of%20Interim%20Results) The Audit Committee reviewed the Group's unaudited condensed consolidated interim financial statements for the period, raising no objections to accounting policies - The Audit Committee has discussed and reviewed the Group's unaudited condensed consolidated interim financial statements for the reporting period with the Company's management[75](index=75&type=chunk) - The Audit Committee raised no objections regarding the accounting policies adopted by the Company[75](index=75&type=chunk) [Other Disclosures](index=29&type=section&id=Other%20Disclosures) This section covers the publication of interim results and report, definitions of terms, and Board orders [Publication of Interim Results and Interim Report](index=29&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) This interim results announcement is published on HKEXnews and the Company's website; the 2025 interim report will be dispatched to shareholders and published online - This interim results announcement is published on the HKEXnews website http://www.hkexnews.hk and the Company's website http://www.shbt-china.com[76](index=76&type=chunk) - The 2025 interim report, containing all information required by the Listing Rules, will be dispatched to shareholders in due course and published on the aforementioned websites[76](index=76&type=chunk) [Definitions](index=29&type=section&id=Definitions) This section defines key terms used in the announcement, covering company entities, currencies, committees, and geographical regions - This section provides definitions for key terms used in the announcement, such as "Audit Committee", "BND", "Board", "Company", "Directors", "Group", "HKD", "IDR", "Listing Rules", "Major Currencies", "PRC", "Remuneration Committee", "RMB", "Reporting Period", "Shares", "Shareholders", "Stock Exchange", and "USD"[77](index=77&type=chunk)[78](index=78&type=chunk) [By Order of the Board](index=30&type=section&id=By%20Order%20of%20the%20Board) This announcement is issued by Mr. Wang Xiuchun on behalf of the Board, listing Board members as of the announcement date - This announcement is issued by Mr. Wang Xiuchun, Chairman and Executive Director, on behalf of the Board[78](index=78&type=chunk) - As of the date of this announcement, the Board members include Executive Directors Mr. Wang Xiuchun, Ms. Wan Yun, Mr. Wang Lijiang, and Mr. Wang Likai; Non-executive Director Mr. Wang Shizhong; Independent Non-executive Directors Mr. Wang Hongwei, Mr. Hou Siming, and Mr. Sun Dajian[79](index=79&type=chunk)

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company's H1 2025 revenue decreased by 28.6% to **RMB 533 million** due to EPC business adjustments, while profit for the period and basic EPS significantly increased, and total assets and net assets grew H1 2025 Financial Highlights | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | **Revenue** | 533,102 | 746,741 | (28.6) | | **Profit before income tax expense** | 112,529 | 92,633 | 21.5 | | **Profit for the period** | 85,549 | 70,719 | 21.0 | | **Basic earnings per share (RMB cents)** | 4.65 | 3.80 | 22.4 | | **Total assets (period-end)** | 10,767,906 | 10,323,470 | 4.3 | | **Net assets (period-end)** | 1,801,597 | 1,711,215 | 5.3 | [Management Discussion and Analysis](index=2&type=section&id=Management%20Discussion%20and%20Analysis) This section details the company's H1 2025 operations, industry trends, financial performance, and future outlook, highlighting strategic adjustments towards energy storage and operational efficiency despite a revenue decline [Business Review and Outlook](index=2&type=section&id=Business%20Review%20and%20Outlook) In H1 2025, the new energy sector saw rapid growth driven by policy and technology, but faced supply chain and trade challenges, prompting the company to focus on energy storage and high self-consumption distributed PV projects [Industry Development Review](index=2&type=section&id=Industry%20Development%20Review) H1 2025 saw the new energy industry expand in scale and quality, driven by government policies, technological advancements, and market demand, despite facing supply chain volatility and international trade barriers - In H1 2025, the new energy industry demonstrated a "parallel expansion of scale and quality" driven by policy guidance, technological breakthroughs, and market demand, maintaining high growth despite challenges like supply chain volatility and international trade barriers[4](index=4&type=chunk) - The National Energy Administration issued the "Administrative Measures for the Development and Construction of Distributed Photovoltaic Power Generation," standardizing household and industrial/commercial distributed PV projects, simplifying filing, encouraging diverse investment, and stipulating that full grid-connected projects will not be approved after May 1, 2025, with surplus electricity from self-consumption projects participating in market transactions[5](index=5&type=chunk) - The National Development and Reform Commission and the National Energy Administration issued Document No. 136, "Notice on Deepening the Market-Oriented Reform of New Energy On-grid Tariffs and Promoting High-Quality Development of New Energy," proposing "full market entry" for new energy on-grid electricity and setting June 1, 2025, as the "new and old demarcation" date for different pricing mechanisms for existing and new projects[6](index=6&type=chunk) - The National Energy Administration released the "2025 Energy Work Guidance Opinion," targeting a national total installed power generation capacity of over **3.6 billion kW**, with over **200 million kW** of new new energy installed capacity, and actively promoting large-scale wind and PV bases in desert areas and offshore wind power projects[7](index=7&type=chunk) - The Ministry of Ecology and Environment issued the "Work Plan for Expanding the National Carbon Emission Trading Market to Cover Steel, Cement, and Aluminum Smelting Industries," which will integrate these three high-energy-consuming sectors into the national carbon market in two phases, promoting "green electricity purchase and green hydrogen use" by enterprises and fostering interaction between green certificate trading and the carbon market[8](index=8&type=chunk) - The National Development and Reform Commission and the National Energy Administration issued Document No. 394, "Notice on Comprehensively Accelerating the Construction of Electricity Spot Markets," requiring basic full coverage of electricity spot markets by the end of 2025, full implementation of continuous settlement operations, and clarifying the timetable for electricity spot market operations in 20 provinces[10](index=10&type=chunk) H1 2025 Photovoltaic Power Generation Industry Key Data | Metric | H1 2025 | YoY Change | | :--- | :--- | :--- | | New installed capacity | 212.2 GW | 107.1% | | Cumulative installed capacity (as of end of June) | 1,100 GW | 54.2% | | Share of national total installed power generation capacity | 30.1% | - | | Average utilization rate | Approx. 94% | Down 2.3 percentage points | | TOPCon module conversion efficiency | 25.58% | - | | HIBC cell conversion efficiency | 27.81% | - | | Perovskite tandem module efficiency | 30.6% | - | | TOPCon module price | Approx. RMB 0.65/W | Down from RMB 0.7/W at year-start | | New installed capacity in June | 14.36 GW | Down 38% (YoY), Down 85% (MoM) | H1 2025 Wind Power Generation Industry Key Data | Metric | H1 2025 | YoY Change | | :--- | :--- | :--- | | New installed capacity | 51.4 GW | 98.9% | | Cumulative grid-connected capacity (as of end of June) | 572.6 GW | 22.7% | | Average utilization rate | Approx. 93.2% | Down 2.7 percentage points | | Onshore wind turbine cost | Approx. RMB 1.5/W | Down from RMB 4/W in 2020 | | Offshore wind turbine (incl. tower) average winning bid price | Approx. RMB 3/W | - | | New installed capacity in June | 5.11 GW | Down 16% (YoY), Down 81% (MoM) | H1 2025 Energy Storage Industry Key Data | Metric | H1 2025 | YoY Change | | :--- | :--- | :--- | | New installed power capacity | 21.9 GW | 69.4% | | New installed energy capacity | 55.2 GWh | - | | Grid-side energy storage share | 64.9% | - | | Power source-side energy storage share | 26.7% | - | | User-side energy storage new installed capacity | Doubled YoY | - | | Annualized utilization hours | 1,022–1,200 hours | Slightly up from 1,000 hours in 2024 | | 2h energy storage system price | Approx. RMB 0.55/Wh | Down from RMB 0.85/Wh at early 2024 | | Energy storage cell price | Approx. RMB 0.3/Wh | Down from RMB 0.45/Wh at early 2024 | | New installed power capacity in June | 4.1 GW | Down 31.2% (YoY), Down 53.2% (MoM) | [Group Business Review](index=7&type=section&id=Group%20Business%20Review) In H1 2025, the Group adjusted its strategy to prioritize energy storage and high self-consumption distributed PV projects, achieving progress in new energy development, EPC construction, and power station O&M, leading to increased overall profit despite reduced EPC and financing revenue - The Group adjusted its business direction, prioritizing energy storage development this year, while actively pursuing distributed PV projects with high self-consumption rates and decentralized wind power projects with local priority consumption[16](index=16&type=chunk) - In H1, the Group tracked over **6 GW** of new energy projects, with **4.2 GW** identified as key development projects, successfully bidding for the Huazun Liuxinzhen 25.2 MW project, advancing the Lincang Phase II 100 MW/200 MWh energy storage project to grid connection, and securing the Jiyuan Steel 80 MW/240 MWh energy storage project[17](index=17&type=chunk) - Leveraging shareholder resources, the Group actively developed Baowan Logistics rooftop distributed PV power stations, completing grid connection for **14 projects** in H1, with **7 projects** under construction and **6 projects** approved for commencement; additionally, it actively explored overseas markets, promoting the Sri Lanka Hambantota integrated PV-storage project[17](index=17&type=chunk) H1 2025 Group Key Financial Indicators | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 533,102 | 746,741 | (28.6) | | Profit attributable to equity holders | 86,122 | 70,383 | 22.4 | | Basic earnings per share (RMB cents) | 4.65 | 3.80 | 22.4 | EPC, Consulting, and Integrated Construction Business Revenue | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue from sales to external customers | 32,422 | 362,737 | (91.1) | - The decrease in EPC business revenue is primarily due to a change in business strategy, with new energy EPC business mainly focused on self-invested and self-built projects, where most revenue is offset at the consolidated level; municipal EPC business contracted and exited due to the downturn in the real estate industry, with no new projects undertaken in 2025[19](index=19&type=chunk) - In H1, the Group undertook **14 new energy EPC projects** with a total contract value of approximately **RMB 345 million**, covering centralized PV, distributed PV, and energy storage, and successfully grid-connected **14 Baowan Logistics rooftop distributed projects** and the **Lincang Phase II 100 MW/200 MWh energy storage project**[20](index=20&type=chunk) - The Group's wholly-owned subsidiary upgraded its "Power Installation, Repair, and Testing Qualification" from Level 4 to Level 3, obtained **2 utility model patents** and **1 invention patent**, and maintained its qualification as a High-Tech Enterprise in Jiangsu Province[21](index=21&type=chunk) Power Generation Business Key Data | Metric | H1 2025 | H1 2024 (Restated) | Change (%) | | :--- | :--- | :--- | :--- | | Total operating power stations | 117 | - | - | | Total wind and PV operating capacity | 2,030 MW | - | - | | Energy storage power station operating capacity | 551 MWh | - | - | | Wind and PV total power generation | 1.14 billion kWh | - | - | | Cumulative PV power station generation | 820 million kWh | - | - | | Cumulative wind power station generation | 320 million kWh | - | - | | Green electricity trading volume | Approx. 25 million kWh | - | - | | Increased revenue from green electricity trading | Approx. RMB 480 thousand | - | - | | Green certificate trading volume | 408 thousand certificates | - | - | | Increased revenue from green certificate trading | Approx. RMB 1.52 million | - | - | | Power generation segment revenue | RMB 493,208 thousand | RMB 372,912 thousand | 32.3 | | Power generation segment profit (before tax and finance costs) | RMB 239,590 thousand | RMB 180,217 thousand | 33.0 | - To ensure distributed PV projects continued under existing policies, the Group optimized design and implemented cross-construction measures to ensure **14 Baowan Logistics distributed rooftop PV projects** were grid-connected before April 30, 2025[22](index=22&type=chunk) - The Group vigorously expanded its energy storage business, adding **245 MWh** of grid-connected capacity, including the Lincang Phase II 100 MW/200 MWh energy storage project which achieved full capacity grid connection on May 28, generating revenue through charge-discharge price differences and capacity leasing, and reducing curtailment rates for power stations in the Yunnan region[23](index=23&type=chunk) - The Group continued to advance the standardization of power station operations, enhancing intelligent O&M capabilities, with its independently developed intelligent O&M system now operational, achieving a power station equipment availability rate of **99.7%**, 0.7 percentage points higher than the industry standard[24](index=24&type=chunk) Financing Business Revenue | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Segment revenue from external customers | 7,472 | 11,092 | (32.6) | - The decrease in financing business revenue is mainly due to intense industry competition and difficulties in project expansion; the Group continues to conduct financial leasing business in the new energy sector, connecting with **22 projects** (17 PV, 5 energy storage) in H1, achieving **107.9%** of its annual investment plan[26](index=26&type=chunk)[27](index=27&type=chunk) [Business Outlook](index=12&type=section&id=Business%20Outlook) The 136 document marks a shift in the new energy sector from policy-driven expansion to market-led high-quality development, accelerating electricity spot markets, driving refined operations for wind and PV, and transforming energy storage into a value-driven industry - Document No. 136 is a landmark for China's new energy industry, signaling a shift from "policy-driven scale expansion" to "market-led high-quality development," marking a deeper phase of new energy electricity market reform with systemic and structural impacts across the entire new energy industry chain[28](index=28&type=chunk) - Document No. 394, in conjunction with Document No. 136, jointly promotes nationwide coverage of electricity spot markets (targeting end of 2025), normalizing time-of-use pricing and supply-demand response, providing price signals to guide resource allocation for new energy and energy storage, and compelling the power system to transition towards "new energy as the main source, thermal power for peak shaving"[29](index=29&type=chunk) - Each province will formulate differentiated implementation rules based on local new energy penetration, absorption capacity, and market development, requiring new energy investment enterprises to deeply understand and adapt to local policies while strategically deploying in high electricity price markets to optimize returns[30](index=30&type=chunk) - The wind and PV industries will shift from scale expansion to refined operations, with revenue models being restructured, forcing improvements in levelized cost of electricity control and regulation capabilities; enterprises need to strengthen power generation forecasting, optimize bidding strategies, and enhance market-oriented trading capabilities[31](index=31&type=chunk) - Energy storage demand will transition from "policy-mandated" to genuine market-driven needs, with core drivers including peak shaving and frequency regulation in weak grid areas, user-side arbitrage, improving the economic viability of self-consumption for distributed projects, and virtual power plants aggregating resources to provide ancillary services[32](index=32&type=chunk) - The rise of distributed PV and "wall-to-wall" power sales models promotes the transformation of distributed energy from "surplus power to grid" to primarily self-consumption, direct supply to users via "wall-to-wall" sales, or aggregation into microgrids for power sales, fostering the rapid development of new entities such as "wall-to-wall" power sales service providers and integrated energy integrators[33](index=33&type=chunk) - Virtual Power Plants (VPPs) will become a core market hub, aggregating distributed wind, PV, and storage, as well as interruptible loads, to provide services such as peak shaving, frequency regulation, and reserves to the grid, becoming a key tool for new energy projects to participate in market transactions and obtain excess returns[33](index=33&type=chunk) [Financial Performance Analysis](index=15&type=section&id=Financial%20Performance%20Analysis) In H1 2025, the Group's consolidated revenue decreased by 28.6% to **RMB 533 million** due to a significant decline in EPC segment revenue, yet profit for the period increased by 21.0% to **RMB 85.55 million** driven by enhanced power station O&M and increased generation, improving the net profit margin to 16.0% H1 2025 Revenue Composition | Segment | H1 2025 (RMB thousand) | Share (%) | H1 2024 (RMB thousand) | Share (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | EPC, Consulting, and Integrated Construction | 32,422 | 6.1 | 362,737 | 48.6 | (91.1) | | Power Generation | 493,208 | 92.5 | 372,912 | 49.9 | 32.3 | | Financing | 7,472 | 1.4 | 11,092 | 1.5 | (32.6) | | **Total** | **533,102** | **100.0** | **746,741** | **100.0** | **(28.6)** | - Profit attributable to owners of the Company increased by approximately **22.4%** to **RMB 86,122,000**, with basic earnings per share of **RMB 4.65 cents**, up **22.4%** from **RMB 3.80 cents** in the same period last year[34](index=34&type=chunk)[38](index=38&type=chunk) - The increase in profit is primarily due to the Group's continuous improvement in intelligent O&M of power stations, consistently enhancing equipment availability and power generation, leading to an increase in net profit margin to **16.0%** (H1 2024: 9.5%)[38](index=38&type=chunk) H1 2025 Other Income, Gains, and Losses – Net | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Other income, gains, and losses – net | 183 | 10,423 | Significant decrease | | Primary reasons | Decrease in interest income due to reduced bank deposits, and exchange losses from HKD depreciation against RMB | - | - | H1 2025 Cost of Sales | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of sales | 279,895 | 514,265 | (45.6) | | Primary reasons | Business adjustments in the EPC segment | - | - | H1 2025 Administrative Expenses | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative expenses | 43,494 | 47,686 | (8.8) | | Primary components | Staff costs, depreciation, bank charges, professional fees, administrative expenses, and R&D expenses | - | - | H1 2025 Finance Costs | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Finance costs | 98,013 | 103,129 | (5.0) | | Primary reasons | Significant reduction in bank loan interest rates due to high-interest replacement and LPR adjustments | - | - | H1 2025 Income Tax Expense | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Income tax expense | 26,980 | 21,914 | 23.1 | | Primary reasons | Consistent with the Group's overall business growth rate | - | - | [Financial Position](index=17&type=section&id=Financial%20Position) As of June 30, 2025, the Group's total assets increased by 4.3% to **RMB 10.768 billion**, with total liabilities growing 4.1% to **RMB 8.966 billion**, and total equity attributable to owners increasing 5.4% to **RMB 1.764 billion**, maintaining a prudent financial management approach H1 2025 Balance Sheet Overview | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total assets | 10,767,906 | 10,323,470 | 4.3 | | Current assets | 3,513,910 | 3,420,050 | 2.7 | | Non-current assets | 7,253,996 | 6,903,420 | 5.1 | | Total liabilities | 8,966,309 | 8,612,255 | 4.1 | | Current liabilities | 3,429,913 | 3,345,013 | 2.5 | | Non-current liabilities | 5,536,396 | 5,267,242 | 5.1 | | Total equity attributable to owners of the Company | 1,764,152 | 1,673,197 | 5.4 | H1 2025 Liquidity and Gearing Ratio | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net current assets | RMB 83,997 thousand | RMB 75,037 thousand | | Cash and cash equivalents | RMB 925,001 thousand | RMB 831,871 thousand | | Gearing ratio | 4.42 | 4.31 | | Debt-to-asset ratio | 0.83 | 0.83 | - The Group has pledged bank deposits of **RMB 75,336,000**, as well as finance lease receivables, trade and bills receivables, and power stations, to secure bank and other borrowings[49](index=49&type=chunk) - The Group primarily funds its operations through internally generated resources, bank and other borrowings, and fundraising activities, regularly reviewing its liquidity and financing needs and adopting a prudent financial management approach[50](index=50&type=chunk)[51](index=51&type=chunk) H1 2025 Capital Expenditure and Commitments | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Capital expenditure | 563,003 | 640,145 | | Purpose | Investment, development, and construction of power station equipment | Investment, development, and construction of power station equipment | | Contractual commitments for power station construction (period-end) | 1,016,473 | 964,591 | H1 2025 Employment and Remuneration Policy | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total employees | 355 | 325 | | Staff costs (RMB thousand) | 47,291 | 33,639 | | Remuneration determination | Based on Group performance and individual performance | Based on Group performance and individual performance | [Interim Condensed Consolidated Financial Statements](index=21&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited interim condensed consolidated statement of profit or loss and other comprehensive income and statement of financial position for China Nuclear Energy Technology Group Co., Ltd. for the six months ended June 30, 2025, showing decreased revenue but increased profit and steady growth in net assets [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=21&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group reported revenue of **RMB 533 million** and gross profit of **RMB 253 million**, with profit for the period increasing 21.0% to **RMB 85.55 million** and total comprehensive income at **RMB 90.38 million** Summary of Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 533,102 | 746,741 | | Cost of sales | (279,895) | (514,265) | | Gross profit | 253,207 | 232,476 | | Other income, gains and losses – net | 183 | 10,423 | | Administrative expenses | (43,494) | (47,686) | | Finance costs | (98,013) | (103,129) | | Profit before tax | 112,529 | 92,633 | | Income tax expense | (26,980) | (21,914) | | Profit for the period | 85,549 | 70,719 | | Total comprehensive income for the period | 90,382 | 67,911 | | Profit attributable to owners of the parent | 86,122 | 70,383 | | Basic earnings per share (RMB cents) | 4.65 | 3.80 | - Exchange differences arising from the translation of foreign operations amounted to **RMB 4,833 thousand**, contributing to an increase in other comprehensive income for the period[57](index=57&type=chunk) [Interim Condensed Consolidated Statement of Financial Position](index=23&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets reached **RMB 10.768 billion**, a 4.3% increase from year-end 2024, with non-current assets at **RMB 7.254 billion** and current assets at **RMB 3.514 billion**, while total liabilities were **RMB 8.966 billion** and net assets **RMB 1.802 billion** Summary of Interim Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 6,418,788 | 6,096,004 | | Right-of-use assets | 428,987 | 392,741 | | Total non-current assets | 7,253,996 | 6,903,420 | | **Current assets** | | | | Trade and bills receivables | 1,470,572 | 1,435,704 | | Cash and cash equivalents | 925,001 | 831,871 | | Total current assets | 3,513,910 | 3,420,050 | | **Current liabilities** | | | | Trade and bills payables | 693,701 | 891,201 | | Bank and other borrowings (current) | 2,403,304 | 2,098,277 | | Total current liabilities | 3,429,913 | 3,345,013 | | **Non-current liabilities** | | | | Bank and other borrowings (non-current) | 5,161,780 | 4,929,416 | | Total non-current liabilities | 5,536,396 | 5,267,242 | | **Net assets** | 1,801,597 | 1,711,215 | | **Total equity** | 1,801,597 | 1,711,215 | [Notes to the Interim Condensed Consolidated Financial Statements](index=25&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the interim condensed consolidated financial statements, covering company information, accounting policies, financial instruments, segment reporting, cost and tax components, EPS calculation, dividend policy, asset and liability breakdowns, business combinations, contingent liabilities, commitments, and related party transactions [Company Information](index=25&type=section&id=Company%20Information) China Nuclear Energy Technology Group Co., Ltd., incorporated in Bermuda, primarily engages in Engineering, Procurement, and Construction (EPC) and consulting and integrated construction services, power generation, and financing services - The Company, incorporated in Bermuda, primarily engages in EPC and consulting and integrated construction services, power generation, and financing services[62](index=62&type=chunk)[64](index=64&type=chunk) [Basis of Preparation and Accounting Policies](index=25&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) The interim financial statements are prepared in accordance with HKAS 34 and applicable disclosure provisions of the Listing Rules, consistent with annual financial statements, with no significant impact from new or revised HKFRSs effective January 1, 2025 - The interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[62](index=62&type=chunk) - The accounting policies applied and significant judgments made by management are consistent with those described in the annual financial statements for the year ended December 31, 2024, and all new or revised Hong Kong Financial Reporting Standards effective from January 1, 2025, have no significant impact on the Group's accounting policies[63](index=63&type=chunk) [Financial Instruments](index=26&type=section&id=Financial%20Instruments) The fair value measurement of the Group's financial instruments utilizes market observable inputs where possible and is categorized into three levels, with no transfers between levels during H1 2025, and the carrying amounts of most financial and non-financial assets and liabilities approximate their fair values - The fair value measurement of the Group's financial and non-financial assets and liabilities uses market observable inputs where possible and is categorized into three levels (Level 1: quoted prices in active markets; Level 2: significant observable inputs; Level 3: significant unobservable inputs)[65](index=65&type=chunk)[68](index=68&type=chunk) - There were no transfers between levels during the six months ended June 30, 2025[66](index=66&type=chunk) Financial Assets at Fair Value Through Profit or Loss | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Unlisted equity investments | 45,318 | 45,334 | | Valuation method | Income approach or recent transaction prices, using discounted cash flow method with a discount rate of 10.67% | - | [Segment Reporting and Revenue](index=27&type=section&id=Segment%20Reporting%20and%20Revenue) The Group has three reportable operating segments: EPC and consulting and integrated construction services, power generation, and financing services, with performance assessed by adjusted profit/loss before tax, where the power generation segment contributed the largest revenue of **RMB 493 million** and segment results of **RMB 240 million** in H1 2025 - The Group has three reportable operating segments: EPC and consulting and integrated construction services, power generation, and financing services[69](index=69&type=chunk)[72](index=72&type=chunk) - Segment performance is assessed by reportable segment profit/loss (measured as adjusted profit/loss before tax)[69](index=69&type=chunk) H1 2025 Segment Revenue and Results | Segment | Sales to external customers (RMB thousand) | Total segment revenue (RMB thousand) | Segment results (RMB thousand) | | :--- | :--- | :--- | :--- | | EPC, Consulting, and Integrated Construction | 32,422 | 360,220 | (27,665) | | Power Generation | 493,208 | 493,208 | 239,590 | | Financing | 7,472 | 8,191 | 658 | | **Total (external customers)** | **533,102** | **861,619** | **212,583** | H1 2025 Segment Assets and Liabilities | Segment | Segment assets (RMB thousand) | Segment liabilities (RMB thousand) | | :--- | :--- | :--- | | EPC, Consulting, and Integrated Construction | 1,638,025 | 2,373,727 | | Power Generation | 8,566,686 | 6,003,567 | | Financing | 332,524 | 132,317 | | **Total** | **10,537,235** | **8,509,611** | [Finance Costs](index=30&type=section&id=Finance%20Costs) For the six months ended June 30, 2025, the Group's finance costs decreased by 5.0% to **RMB 98.01 million**, primarily comprising interest on bank and other borrowings and lease liabilities H1 2025 Finance Costs Composition | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on bank and other borrowings | 92,380 | 100,483 | | Interest on lease liabilities | 5,633 | 2,646 | | **Total** | **98,013** | **103,129** | [Profit Before Tax](index=30&type=section&id=Profit%20Before%20Tax) The Group's profit before tax for the six months ended June 30, 2025, was **RMB 113 million**, after deducting various expenses including depreciation of property, plant and equipment, right-of-use assets, and staff costs H1 2025 Profit Before Tax Deductions | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Reversal of impairment allowance for trade and bills receivables and contract assets | 241 | 370 | | Auditor's remuneration | 230 | 227 | | Bank charges | 2,822 | 2,535 | | Legal and professional fees | 2,919 | 2,773 | | Short-term and low-value lease expenses | 2,253 | 1,545 | | Research and development expenses | 172 | 73 | | Total staff costs | 29,208 | 33,291 | | Depreciation of property, plant and equipment | 175,679 | 158,211 | | Depreciation of right-of-use assets | 13,651 | 12,271 | [Income Tax](index=31&type=section&id=Income%20Tax) For the six months ended June 30, 2025, the Group's income tax expense increased by 23.1% to **RMB 26.98 million**, consistent with overall business growth, with a high-tech subsidiary in China enjoying a 15% corporate income tax rate reduction - The Group's income tax expense increased by approximately **23.1%** to **RMB 26,980,000**, consistent with the Group's overall business growth rate[43](index=43&type=chunk)[81](index=81&type=chunk) - A subsidiary operating in mainland China was recognized as a "High-Tech Enterprise," qualifying for a **15%** corporate income tax rate reduction for the period from 2023 to 2025[79](index=79&type=chunk) H1 2025 Income Tax Expense Composition | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Current – Mainland China expense for the period | 27,350 | 18,915 | | Prior years (over-provision) / under-provision | (348) | 1,079 | | Deferred tax | (22) | 1,920 | | **Income tax expense** | **26,980** | **21,914** | [Earnings Per Share Attributable to Owners of the Parent](index=31&type=section&id=Earnings%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Parent) For the six months ended June 30, 2025, basic and diluted earnings per share attributable to owners of the parent increased to **RMB 4.65 cents** from **RMB 3.80 cents** in the prior year, based on profit of **RMB 86.12 million** and 1,852,037 thousand weighted average ordinary shares H1 2025 Earnings Per Share Calculation | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit used for basic and diluted EPS calculation | RMB 86,122 thousand | RMB 70,383 thousand | | Basic and diluted earnings per share | RMB 4.65 cents | RMB 3.80 cents | | Issued share capital (beginning and end of period) | 1,852,037 thousand shares | 1,852,037 thousand shares | | Weighted average number of ordinary shares | 1,852,037 thousand shares | 1,852,037 thousand shares | [Dividends](index=32&type=section&id=Dividends) The Company's directors did not declare or propose any dividends for the six months ended June 30, 2025 - The Company's directors did not declare or propose any dividends for the six months ended June 30, 2025 (six months ended June 30, 2024: nil)[84](index=84&type=chunk) [Property, Plant and Equipment](index=32&type=section&id=Property,%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group acquired property, plant and equipment at a cost of approximately **RMB 503 million**, including approximately **RMB 80.81 million** acquired through business combinations H1 2025 Property, Plant and Equipment Acquisition Cost | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Acquisition cost | 502,752 | 696,606 | | Acquisition cost through business combinations | 80,813 | - | [Investment in an Associate](index=32&type=section&id=Investment%20in%20an%20Associate) As of June 30, 2025, the Group's investment in its associate, CNNC Qiqihar Solar Power Generation Co., Ltd., was **RMB 6.73 million**, representing a 49% ownership interest, aligning with the Group's power generation segment Investment in an Associate | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Share of net assets | 6,725 | 6,320 | - The associate is CNNC Qiqihar Solar Power Generation Co., Ltd., with the Group's ownership interest at **49%**, primarily engaged in solar power generation and sales, solar technology consulting services, PV technology development, and solar PV system construction in China[87](index=87&type=chunk) [Trade and Bills Receivables](index=33&type=section&id=Trade%20and%20Bills%20Receivables) As of June 30, 2025, the Group's net carrying amount of trade and bills receivables was **RMB 1.471 billion**, a slight increase from year-end 2024, with credit terms generally three months but extendable up to one year for major customers, and overdue balances regularly reviewed H1 2025 Trade and Bills Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables | 1,477,164 | 1,443,093 | | Bills receivables | 26,242 | 25,622 | | Impairment | (32,834) | (33,011) | | **Net carrying amount** | **1,470,572** | **1,435,704** | H1 2025 Ageing Analysis of Trade and Bills Receivables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 90 days | 190,368 | 273,385 | | 91 to 180 days | 63,607 | 257,669 | | 181 to 365 days | 371,973 | 157,363 | | Over 365 days | 877,458 | 780,298 | | **Total** | **1,503,406** | **1,468,715** | [Pledged Bank Deposits](index=34&type=section&id=Pledged%20Bank%20Deposits) As of June 30, 2025, the Group's pledged bank deposits amounted to **RMB 75.34 million**, a decrease from year-end 2024, primarily used to secure general bank facilities and bills payable, bearing fixed annual interest rates between 0.2% and 1.3% Pledged Bank Deposits | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Pledged bank deposits | 75,336 | 100,894 | | Interest rate range | 0.2% to 1.3% (fixed annual interest rate) | 0.1% to 1.3% (fixed annual interest rate) | | Currency | RMB | RMB | - Pledged bank deposits are primarily used to secure general bank facilities and bills payable and are classified as current assets[91](index=91&type=chunk) [Trade and Bills Payables](index=35&type=section&id=Trade%20and%20Bills%20Payables) As of June 30, 2025, the Group's trade and bills payables totaled **RMB 694 million**, a decrease from year-end 2024, with the largest portion of accounts payable being over 365 days, and these payables are non-interest bearing H1 2025 Ageing Analysis of Trade and Bills Payables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 90 days | 160,617 | 241,555 | | 91 to 180 days | 89,956 | 106,489 | | 181 to 365 days | 123,509 | 138,688 | | Over 365 days | 319,619 | 404,469 | | **Total** | **693,701** | **891,201** | - Trade and bills payables are non-interest bearing[92](index=92&type=chunk) [Interest-Bearing Bank and Other Borrowings](index=35&type=section&id=Interest-Bearing%20Bank%20and%20Other%20Borrowings) As of June 30, 2025, the Group's total interest-bearing bank and other borrowings increased to **RMB 7.565 billion**, comprising **RMB 2.403 billion** in current and **RMB 5.162 billion** in non-current borrowings, all bearing floating interest rates between 2.2% and 3.75% and secured by various assets H1 2025 Interest-Bearing Bank and Other Borrowings | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Current** | | | | Short-term bank borrowings, secured | 1,505,029 | 1,297,481 | | Short-term bank borrowings, unsecured | 456,437 | 390,719 | | Long-term bank borrowings, secured, current portion | 421,536 | 390,566 | | Other borrowings, secured, current portion | 20,302 | 19,511 | | **Total – Current** | **2,403,304** | **2,098,277** | | **Non-current** | | | | Long-term bank borrowings, secured | 5,062,744 | 4,825,432 | | Other borrowings, secured | 99,036 | 103,984 | | **Total – Non-current** | **5,161,780** | **4,929,416** | | **Total** | **7,565,084** | **7,027,693** | - Secured bank and other borrowings are pledged by corporate guarantees, finance lease receivables, trade and bills receivables, power stations, and shares of certain subsidiaries[94](index=94&type=chunk) - All bank and other borrowings bear floating effective annual interest rates ranging from **2.2% to 3.75%** (December 31, 2024: 1.5% to 7.0%)[95](index=95&type=chunk) H1 2025 Scheduled Repayment of Bank and Other Borrowings | Repayment period | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within one year | 2,403,304 | 2,098,277 | | Over one year but not exceeding two years | 544,575 | 534,315 | | Over two years but not exceeding five years | 1,592,683 | 1,436,711 | | After five years | 3,024,522 | 2,958,390 | | **Total** | **7,565,084** | **7,027,693** | - As of June 30, 2025, the Group's undrawn bank loan facilities amounted to **RMB 3,308,529,000**[96](index=96&type=chunk) [Share Capital](index=37&type=section&id=Share%20Capital) As of June 30, 2025, the Company's issued and fully paid share capital remained consistent with year-end 2024, comprising 1,852,037 thousand shares with a capital amount of **RMB 162.34 million** Issued Share Capital | Metric | June 30, 2025 (thousand shares) | June 30, 2025 (RMB thousand) | | :--- | :--- | :--- | | Issued and fully paid share capital | 1,852,037 | 162,338 | [Business Combinations](index=38&type=section&id=Business%20Combinations) On March 31, 2025, the Group acquired 100% equity interest in Shaoguan Dingrong New Energy Technology Co., Ltd. for **RMB 1 million** in cash to expand its power generation market share in China, resulting in negative goodwill of **RMB 1.27 million** - On March 31, 2025, the Group acquired **100%** equity interest in Shaoguan Dingrong New Energy Technology Co., Ltd. from a third-party company, as part of the Group's strategy to expand its market share in China's power generation market[98](index=98&type=chunk) Fair Value of Shaoguan Dingrong New Energy Technology Co., Ltd. at Acquisition | Item | Fair value recognized at acquisition (RMB thousand) | | :--- | :--- | | Property, plant and equipment | 80,813 | | Right-of-use assets | 3,200 | | Trade receivables | 1,631 | | Prepayments and other receivables | 643 | | Trade payables | (70,742) | | Accruals and other payables | (9,946) | | Lease liabilities | (3,332) | | **Total identifiable net assets measured at fair value** | **2,267** | | **Goodwill at acquisition** | **(1,267)** | | **Cash paid** | **1,000** | - Since the acquisition, Shaoguan Dingrong New Energy Technology Co., Ltd. contributed **RMB 1,893,000** in revenue and a consolidated loss of **RMB 67,000** to the Group for the six months ended June 30, 2025[100](index=100&type=chunk) [Contingent Liabilities](index=39&type=section&id=Contingent%20Liabilities) As of the end of the reporting period, the Group had no significant contingent liabilities - As of the end of the reporting period, the Group had no significant contingent liabilities[101](index=101&type=chunk) [Commitments](index=39&type=section&id=Commitments) As of June 30, 2025, the Group's contractual commitments for the construction of power stations increased to **RMB 1.016 billion** from year-end 2024 Contractual Commitments for Power Station Construction | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Contractual commitments | 1,016,473 | 964,591 | [Related Party Transactions](index=39&type=section&id=Related%20Party%20Transactions) For the six months ended June 30, 2025, the Group engaged in various related party transactions, including new right-of-use assets, interest and payments for lease liabilities, electricity sales, and new property, plant and equipment, with outstanding balances including **RMB 58.66 million** in lease liabilities and **RMB 6.17 million** in trade and bills receivables H1 2025 Related Party Transactions | Transaction type | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | New right-of-use assets from related companies | 44,714 | 2,687 | | Interest paid on lease liabilities to related companies | 317 | 132 | | Payments for lease liabilities to related companies | 4,627 | 808 | | Sales of electricity to related companies | 2,197 | 937 | | New property, plant and equipment from related companies | 334 | - | Outstanding Balances with Related Parties | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Lease liabilities to related companies | 58,659 | 18,254 | | Trade and bills receivables from related companies | 6,166 | 5,956 | Key Management Personnel Remuneration | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Short-term employee benefits | 1,645 | 1,202 | | Contributions to pension schemes | 162 | 141 | | **Remuneration paid to key management personnel** | **1,807** | **1,343** | [Comparative Figures](index=40&type=section&id=Comparative%20Figures) Comparative figures for the six months ended June 30, 2024, have been restated due to a change in the presentation currency of the consolidated financial statements from HKD to RMB - Comparative figures for the six months ended June 30, 2024, have been restated in these interim financial statements due to a change in the presentation currency of the consolidated financial statements from HKD to RMB[106](index=106&type=chunk) [Approval of Financial Statements](index=40&type=section&id=Approval%20of%20Financial%20Statements) The Board of Directors approved and authorized the publication of the interim financial statements on August 26, 2025 - The Board of Directors approved and authorized the publication of the interim financial statements on August 26, 2025[107](index=107&type=chunk) [Corporate Governance and Other Information](index=41&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section outlines the company's corporate governance practices, including compliance with Listing Rules, the audit committee's role, directors' securities trading standards, and confirms no purchases, sales, or redemptions of listed securities, no significant post-balance sheet events, and no interim dividend declaration [Corporate Governance Practices](index=41&type=section&id=Corporate%20Governance%20Practices) The Company has adopted and complied with the applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the HKEX Listing Rules throughout the six months ended June 30, 2025 - The Company has adopted the principles of the Corporate Governance Code set out in Appendix C1 of the HKEX Listing Rules and has complied with the applicable code provisions of the Corporate Governance Code throughout the six months ended June 30, 2025[109](index=109&type=chunk) [Audit Committee](index=41&type=section&id=Audit%20Committee) The Company has established an Audit Committee in accordance with the Listing Rules, responsible for reviewing and overseeing the Group's financial reporting, risk management, and internal controls, and has reviewed the unaudited interim condensed consolidated financial statements for H1 2025 - The Audit Committee, comprising three independent non-executive directors Dr. Su Lixin, Dr. Xu Shiqing, and Mr. Wang Ruzhang, has reviewed the Group's unaudited interim condensed consolidated financial statements for the six months ended June 30, 2025[110](index=110&type=chunk) [Standard Code for Securities Transactions by Directors](index=41&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted its own code of conduct for directors' securities transactions, no less stringent than the Standard Code in Appendix C3 of the Listing Rules, and all directors confirmed compliance throughout H1 2025 - The Company has adopted its own code of conduct for directors' dealings in the Company's securities, the terms of which are no less stringent than the Standard Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules[111](index=111&type=chunk) - Following specific enquiries, all directors confirmed compliance with the required standards of dealing set out in the code of conduct and the Standard Code throughout the six months ended June 30, 2025[111](index=111&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=41&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - 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 shares[112](index=112&type=chunk) [Significant Post-Balance Sheet Events](index=42&type=section&id=Significant%20Post-Balance%20Sheet%20Events) No significant post-balance sheet events have occurred from June 30, 2025, up to the date of this announcement - No significant post-balance sheet events have occurred from June 30, 2025, up to the date of this announcement[113](index=113&type=chunk) [Interim Dividend](index=42&type=section&id=Interim%20Dividend) The Board of Directors did not declare any interim dividend for the six months ended June 30, 2025 - The Board of Directors did not declare any interim dividend for the six months ended June 30, 2025 (2024: nil)[114](index=114&type=chunk) [Board of Directors](index=42&type=section&id=Board%20of%20Directors) As of the date of this announcement, the Board of Directors comprises executive directors Mr. Li Hongwei (Chairman), Mr. Wu Rong (Vice Chairman), Mr. Qiu Wenhe (Vice Chairman), Mr. Liu Genyu, Mr. Li Xiaofeng, and Ms. Du Ruili, and independent non-executive directors Dr. Xu Shiqing, Dr. Su Lixin, and Mr. Wang Ruzhang - As of the date of this announcement, the executive directors are Mr. Li Hongwei (Chairman), Mr. Wu Rong (Vice Chairman), Mr. Qiu Wenhe (Vice Chairman), Mr. Liu Genyu, Mr. Li Xiaofeng, and Ms. Du Ruili; and the independent non-executive directors are Dr. Xu Shiqing, Dr. Su Lixin, and Mr. Wang Ruzhang[116](index=116&type=chunk)

Company Information The section provides an overview of the company's governance structure, key personnel, and fundamental operational details [Board of Directors and Committee Composition](index=4&type=section&id=Board%20of%20Directors%20and%20Committee%20Composition) This section details the composition of Hanvey Group Holdings Limited's Board of Directors, compliance officer, company secretary, authorized representatives, and members of the audit, remuneration, and nomination committees - The Board of Directors comprises Mr. Cheuk Sin Cheung (Chairman and Chief Executive Officer), Ms. Au Ching Mei (Executive Director), and three independent non-executive directors[7](index=7&type=chunk)[8](index=8&type=chunk) - Mr. Yu Sau Ning is the Chairman of the Audit Committee and Remuneration Committee, while Mr. Cheuk Sin Cheung is the Chairman of the Nomination Committee[9](index=9&type=chunk) [Company Basic Information](index=4&type=section&id=Company%20Basic%20Information) This section provides essential company details including auditors, legal advisors, headquarters, registered office, share registrar, principal bankers, GEM stock code, and website - The company's stock code is **8219**, and its website is **www.hanveygroup.com.hk**[10](index=10&type=chunk) - The auditor is Tianjian International CPA Limited, and the Hong Kong legal advisor is Tsui & Co[9](index=9&type=chunk) Executive Summary This section presents the key financial highlights for the first half of 2025, demonstrating a significant turnaround in profitability and revenue growth [Key Financial Highlights for H1 2025](index=5&type=section&id=Key%20Financial%20Highlights%20for%20H1%202025) This section outlines Hanvey Group's key financial performance for the six months ended June 30, 2025, including revenue growth, a turnaround to net profit, and significant improvement in basic earnings per share Key Financial Highlights for H1 2025 | Metric | Six Months Ended June 30, 2025 (HKD thousands) | Six Months Ended June 30, 2024 (HKD thousands) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 54,062 | 51,811 | +4.34% | | Profit/(Loss) Attributable to Owners of the Company | 1,060 | (8,970) | Turned to Profit | | Basic Earnings/(Loss) Per Share | 0.43 HK cents | (5.44) HK cents | Turned to Profit | Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income This section details the Group's financial performance for the six months ended June 30, 2025, showing a shift from loss to profit driven by revenue growth and cost reductions [Profit or Loss and Comprehensive Income Performance](index=6&type=section&id=Profit%20or%20Loss%20and%20Comprehensive%20Income%20Performance) This section presents Hanvey Group's condensed consolidated statement of profit or loss and other comprehensive income for the six months ended June 30, 2025, reflecting a turnaround from loss to profit, driven by revenue growth, increased other income, and significant reductions in administrative expenses and finance costs, though exchange differences led to increased other comprehensive expenses Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Six Months Ended June 30, 2025) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Revenue | 54,062 | 51,811 | Increase of 2,251 | | Gross Profit | 18,417 | 17,299 | Increase of 1,118 | | Other income, gains and losses | 2,613 | (334) | Increase of 2,947 (Turned to profit) | | Administrative expenses | (18,402) | (20,361) | Decrease of 1,959 | | Finance costs | (2,011) | (3,918) | Decrease of 1,907 | | Profit/(Loss) before tax | 1,153 | (8,824) | Increase of 9,977 (Turned to profit) | | Profit/(Loss) for the period | 1,058 | (8,972) | Increase of 10,030 (Turned to profit) | | Profit/(Loss) attributable to owners of the Company | 1,060 | (8,970) | Increase of 10,030 (Turned to profit) | | Exchange differences arising on translation | (4,995) | 4,740 | Decrease of 9,735 (From income to expense) | | Basic earnings/(loss) per share | 0.43 HK cents | (5.44) HK cents | Turned to profit | Condensed Consolidated Statement of Financial Position This section outlines the Group's financial position as of June 30, 2025, indicating changes in asset and liability structure due to disposals and expanded net current liabilities [Changes in Asset and Liability Structure](index=7&type=section&id=Changes%20in%20Asset%20and%20Liability%20Structure) This section presents Hanvey Group's condensed consolidated statement of financial position as of June 30, 2025, showing a decrease in both total assets and net assets, and an expansion of net current liabilities, reflecting asset disposals and changes in the liability structure Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Non-current assets | 21,497 | 22,448 | Decrease of 951 | | Current assets | 81,205 | 95,991 | Decrease of 14,786 | | Assets classified as held for sale | 16,100 | 34,902 | Decrease of 18,802 | | Current liabilities | 108,698 | 118,542 | Decrease of 9,844 | | Liabilities associated with assets classified as held for sale | 2,447 | 23,205 | Decrease of 20,758 | | Net current liabilities | (13,840) | (10,854) | Expanded by 2,986 | | Net assets | 7,657 | 11,594 | Decrease of 3,937 | | Equity attributable to owners of the Company | 8,546 | 12,481 | Decrease of 3,935 | Condensed Consolidated Statement of Changes in Equity This section illustrates the movements in the Group's equity for the six months ended June 30, 2025, primarily influenced by comprehensive expenses and exchange reserve changes [Analysis of Changes in Equity](index=9&type=section&id=Analysis%20of%20Changes%20in%20Equity) This section presents Hanvey Group's condensed consolidated statement of changes in equity for the six months ended June 30, 2025, showing a decrease in equity attributable to owners of the company from HKD 11,594 thousand at the end of 2024 to HKD 7,657 thousand, primarily due to total comprehensive expenses for the period, especially a reduction in exchange reserves Condensed Consolidated Statement of Changes in Equity (As of June 30, 2025) | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Share Capital | 24,750 | 24,750 | No change | | Share Premium | 52,362 | 52,362 | No change | | Exchange Reserve | (6,888) | (2,001) | Decrease of 4,887 | | Accumulated Losses | (67,651) | (68,711) | Decrease of 1,060 (Loss narrowed) | | Equity attributable to owners of the Company | 8,546 | 12,481 | Decrease of 3,935 | | Total Equity | 7,657 | 11,594 | Decrease of 3,937 | - Profit for the period was **HKD 1,060 thousand**, but total comprehensive expenses, mainly due to exchange differences, amounted to **HKD 3,937 thousand**[15](index=15&type=chunk) Condensed Consolidated Statement of Cash Flows This section presents the Group's cash flow activities for the six months ended June 30, 2025, highlighting a positive shift in operating cash flow despite a net decrease in overall cash and cash equivalents [Cash Flow Performance](index=10&type=section&id=Cash%20Flow%20Performance) This section presents Hanvey Group's condensed consolidated statement of cash flows for the six months ended June 30, 2025, showing a turnaround to positive cash flow from operating activities, but investing and financing activities led to a net decrease in cash and cash equivalents, resulting in a significantly lower period-end cash balance Condensed Consolidated Statement of Cash Flows (Six Months Ended June 30, 2025) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Net cash generated from/(used in) operating activities | 242 | (28,248) | Increase of 28,490 (Turned from negative to positive) | | Net cash (used in)/generated from investing activities | (18) | 7,277 | Decrease of 7,295 (Turned from positive to negative) | | Net cash used in financing activities | (9,245) | (74) | Increase of 9,171 (Expenditure increased) | | Net decrease in cash and cash equivalents | (9,021) | (21,045) | Decrease of 12,024 (Decrease narrowed) | | Cash and cash equivalents at end of period | 1,881 | (5,281) | Increase of 7,162 (Turned from negative to positive) | Notes to the Condensed Consolidated Financial Statements This section provides detailed explanations and breakdowns for various financial statement items, including company background, accounting policies, revenue, disposals, and financial instruments [1. Company Information](index=11&type=section&id=1.%20Company%20Information) This section details the company's registration, establishment date, principal place of business, ultimate holding company, and its primary business activities of designing, developing, manufacturing, and distributing ODM watch products - The Company was incorporated in the Cayman Islands as an exempted company with limited liability on **June 12, 2017**[17](index=17&type=chunk) - The Company is an investment holding company, with its subsidiaries primarily engaged in the design, development, manufacture, and distribution of watch products on an original design manufacturer (ODM) basis for global watch manufacturers, brand owners, and watch importers[17](index=17&type=chunk) - The Company's shares were listed on GEM of The Stock Exchange of Hong Kong Limited on **July 12, 2018**[18](index=18&type=chunk) [2. Basis of Preparation and Accounting Policies](index=11&type=section&id=2.%20Basis%20of%20Preparation%20and%20Accounting%20Policies) This section outlines the basis for preparing the interim financial statements, which adheres to Hong Kong Financial Reporting Standards, confirming consistency with prior year's accounting policies and no material impact from new standards - The unaudited condensed consolidated interim financial statements are prepared in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants[19](index=19&type=chunk) - The accounting policies adopted are consistent with those applied in the audited financial statements for the year ended December 31, 2024[19](index=19&type=chunk) - The adoption of new and revised Hong Kong Financial Reporting Standards has no significant impact on the Group's results and financial position[19](index=19&type=chunk) [3. Revenue and Segment Information](index=11&type=section&id=3.%20Revenue%20and%20Segment%20Information) This section discloses the Group's revenue primarily from ODM watch manufacturing and trading, categorized by customer geographical location (Asia, Europe, Pacific Region, South America) - The Group currently operates only one operating segment: original design manufacturing (ODM)[20](index=20&type=chunk) Revenue by Customer Geographical Location (Six Months Ended June 30, 2025) | Region | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Asia | 26,076 | 32,536 | | Europe | 8,672 | 5,251 | | Pacific Region | 2,930 | 3,032 | | South America | 16,384 | 10,992 | | **Total** | **54,062** | **51,811** | - The Group's revenue primarily originates from **India, Brazil, and Turkey**[21](index=21&type=chunk) [4. Revenue, Other Income, Gains and Losses](index=12&type=section&id=4.%20Revenue,%20Other%20Income,%20Gains%20and%20Losses) This section details the Group's revenue composition (finished watches, watch kits, watch parts) and other income, gains, and losses, indicating watch kits as the primary revenue source and a significant increase in net exchange gains Revenue Composition (Six Months Ended June 30, 2025) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Finished watches | 12,493 | 16,568 | | Watch kits | 39,669 | 34,018 | | Watch parts | 1,900 | 1,225 | | **Total Revenue** | **54,062** | **51,811** | Other Income, Gains and Losses (Six Months Ended June 30, 2025) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Interest income | 168 | 313 | | Rental income | 413 | 192 | | Net exchange gains | 2,115 | 201 | | Net loss on disposal of financial assets at fair value through profit or loss | (83) | (1,572) | | **Total** | **2,613** | **(334)** | [5. Gain on Disposal of a Subsidiary](index=13&type=section&id=5.%20Gain%20on%20Disposal%20of%20a%20Subsidiary) This section discloses the details of the company's disposal of its subsidiary, Shenzhen Fukui Precision Technology Co., Ltd., including the counterparty, consideration offset method, and the resulting net gain of HKD 1,938 thousand - The Company entered into a sale and purchase agreement with Billion Riches Limited (Purchaser A) for the disposal of the entire equity interest and sales loan in Shenzhen Fukui Precision Technology Co., Ltd[23](index=23&type=chunk) - The disposal (Disposal A) was completed on **June 23, 2025**, generating a net gain of **HKD 1,938 thousand**[25](index=25&type=chunk) Gain on Disposal of a Subsidiary Calculation (HKD thousands) | Item | Amount | | :--- | :--- | | Consideration for Disposal A | (14,250) | | Investment in disposed company | 19,660 | | Carrying amount of assets and liabilities of disposed company as of June 23, 2024 | (3,675) | | Exchange differences arising on translation of foreign operations | 203 | | **Net gain on Disposal A** | **1,938** | [6. Profit Before Tax](index=14&type=section&id=6.%20Profit%20Before%20Tax) This section provides partial information on profit before tax, specifically depreciation expenses for property, plant, and equipment, indicating a slight increase in depreciation Depreciation of Property, Plant and Equipment (Six Months Ended June 30, 2025) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 2,130 | 2,043 | [7. Income Tax](index=14&type=section&id=7.%20Income%20Tax) This section lists the Group's income tax expenses, primarily Hong Kong profits tax and China corporate income tax, showing a decrease in total tax expenses Income Tax Expense (Six Months Ended June 30, 2025) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Hong Kong profits tax | 95 | 115 | | China corporate income tax | – | 33 | | **Total tax expense** | **95** | **148** | [8. Assets and Liabilities Classified as Held for Sale](index=14&type=section&id=8.%20Assets%20and%20Liabilities%20Classified%20as%20Held%20for%20Sale) This section details the Group's assets and liabilities classified as held for sale, including the planned disposal of equity in Shenzhen Fukui Precision Technology Co., Ltd. and a Hong Kong property, along with their respective carrying amounts - The Group entered into an agreement on **December 17, 2024**, to dispose of the entire equity interest and sales loan in its wholly-owned subsidiary, Shenzhen Fukui Precision Technology Co., Ltd., for a consideration of **RMB 18.20 million** (approximately **HKD 19.66 million**)[28](index=28&type=chunk) - On the same day, the Group entered into an agreement to dispose of a property located in Hong Kong for a cash consideration of **HKD 16.40 million**[28](index=28&type=chunk) Assets and Liabilities Classified as Held for Sale (As of June 30, 2025) | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Non-current assets classified as held for sale (Investment property) | 16,100 | 16,100 | | Total assets of disposal group classified as held for sale | – | 18,802 | | **Total assets classified as held for sale** | **16,100** | **34,902** | | Total liabilities associated with assets classified as held for sale | 2,447 | 23,205 | [9. Earnings/(Loss) Per Share](index=16&type=section&id=9.%20Earnings%2F%28Loss%29%20Per%20Share) This section explains the basis for calculating earnings per share, noting that diluted earnings per share are the same as basic earnings per share due to the absence of potential dilutive ordinary shares during the reporting period - Earnings per share for the six months ended June 30, 2025, are calculated based on the profit attributable to owners of the Company of approximately **HKD 1.06 million**[32](index=32&type=chunk) - Diluted earnings per share are the same as basic earnings per share as there were no potential dilutive ordinary shares during the reporting period[33](index=33&type=chunk) [10. Property, Plant and Equipment](index=16&type=section&id=10.%20Property,%20Plant%20and%20Equipment) This section discloses the Group's expenditure on property, plant, and equipment during the reporting period and the carrying amount of pledged property, plant, and equipment as collateral for bank financing - During the interim period, the Group paid approximately **HKD 0.13 million** for the purchase of property, plant and equipment (2024 corresponding period: **HKD 0.06 million**)[34](index=34&type=chunk) - As of June 30, 2025, approximately **HKD 8.29 million** of the Group's pledged property, plant and equipment was mortgaged as collateral for bank financing[34](index=34&type=chunk) [11. Trade and Other Receivables, Deposits and Prepayments](index=16&type=section&id=11.%20Trade%20and%20Other%20Receivables,%20Deposits%20and%20Prepayments) This section details the composition and aging analysis of trade and other receivables, deposits, and prepayments, showing a decrease in total trade receivables and a relatively high proportion of receivables over 90 days old Trade and Other Receivables, Deposits and Prepayments (As of June 30, 2025) | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Trade receivables (net of allowance) | 24,407 | 34,159 | | Other receivables, deposits and prepayments (net of allowance) | 13,443 | 14,113 | Aging Analysis of Trade Receivables (As of June 30, 2025) | Aging | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | 0 to 30 days | 15,771 | 10,700 | | 31 to 60 days | 1,147 | 9,043 | | 61 to 90 days | 451 | 4,556 | | Over 90 days | 7,038 | 9,860 | | **Total** | **24,407** | **34,159** | - The Group generally grants credit terms of **30 to 90 days** to trade customers, with longer terms exceeding 90 days for long-term customers[36](index=36&type=chunk) [12. Trade and Bills Payables, Other Payables and Accrued Charges](index=17&type=section&id=12.%20Trade%20and%20Bills%20Payables,%20Other%20Payables%20and%20Accrued%20Charges) This section lists the composition and aging analysis of trade and bills payables, other payables, and accrued charges, showing a slight increase in total trade payables and a decrease in total bills payables Trade and Bills Payables, Other Payables and Accrued Charges (As of June 30, 2025) | Item | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Trade payables | 24,422 | 22,715 | | Bills payable | 23,164 | 28,700 | | Other payables and accrued charges | 4,525 | 4,990 | - Trade payables typically have credit terms of **30 to 120 days**, and bills payable are all due within **30 to 120 days**[37](index=37&type=chunk)[38](index=38&type=chunk) Management Discussion and Analysis This section offers insights into the Group's business performance, future outlook, financial review, and corporate governance practices during the reporting period [Business Review](index=19&type=section&id=Business%20Review) This section reviews the Group's business performance during the reporting period, noting a 4.34% year-on-year revenue growth and citing a significant increase in the HKTDC export confidence index for the watch industry - The Group primarily derives revenue from the sale of finished watches, watch kits, and watch parts, as well as providing related assembly services[40](index=40&type=chunk) Revenue Growth (Six Months Ended June 30, 2025) | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 54,062 | 51,811 | +4.34% | - The confidence index for the watch industry increased by **10.8 points** from **41.3** in Q2 2024 to **52.1** in Q2 2025[41](index=41&type=chunk) [Prospects](index=19&type=section&id=Prospects) This section discusses uncertainties in the overseas business environment, particularly US-China trade relations and risks of economic slowdowns in Europe and the US, while highlighting strong demand for automatic mechanical and quartz watches in Southeast Asia and the Group's focus on core business and product innovation - The overseas business environment remains uncertain, facing economic slowdown or recession risks, with the US-China tariff trade war as a major uncertainty[43](index=43&type=chunk) - The watch industry faces challenges from technological innovation, diversified consumer demand, and intensified market competition, yet traditional mechanical watches maintain a solid position in the luxury market[43](index=43&type=chunk) - Demand for automatic mechanical and quartz watches in the Southeast Asian market remains substantial, and the Group will closely monitor market trends to provide designs suitable for customers and market needs[43](index=43&type=chunk) - The Group intends to continue focusing on developing its core business, committed to improving product design and strengthening development capabilities[44](index=44&type=chunk) [Financial Review](index=20&type=section&id=Financial%20Review) This section reviews the financial performance during the reporting period, noting an increase in gross profit due to higher sales, and significant reductions in administrative expenses and finance costs due to decreased staff costs and bank borrowings Key Financial Metric Changes (Six Months Ended June 30, 2025) | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Gross Profit | 18,420 | 17,299 | Increase of 1,121 | +6.47% | | Administrative Expenses | 18,400 | 20,360 | Decrease of 1,960 | -9.63% | | Finance Costs | 2,010 | 3,920 | Decrease of 1,910 | -48.72% | - The decrease in administrative expenses was primarily due to reduced staff costs, and the decrease in finance costs was mainly due to reduced bank borrowings[45](index=45&type=chunk) [Interim Dividend](index=20&type=section&id=Interim%20Dividend) The Board of Directors decided not to declare an interim dividend for the reporting period - The Board did not declare an interim dividend for the reporting period (2024: nil)[46](index=46&type=chunk) [Capital Structure](index=20&type=section&id=Capital%20Structure) The company's capital structure remained unchanged during the reporting period, consisting primarily of issued share capital and reserves, which are regularly reviewed by the Board - The Company's capital structure, comprising issued share capital and reserves, remained unchanged during the reporting period[47](index=47&type=chunk) [Liquidity and Financial Resources](index=20&type=section&id=Liquidity%20and%20Financial%20Resources) This section analyzes the Group's liquidity position, showing a significant increase in cash and bank balances, but a slight decrease in the current ratio and a substantial increase in the gearing ratio, indicating higher financial leverage Liquidity Indicators (As of June 30, 2025) | Metric | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash and bank balances (HKD thousands) | 7,150 | 630 | Increase of 6,520 | | Current Ratio (times) | 0.88 | 1.01 | Decrease of 0.13 | | Gearing Ratio (%) | 969.31% | 730.06% | Increase of 239.25% | - The Directors believe that the Group's financial resources are sufficient to support its business and operations[49](index=49&type=chunk) [Commitments](index=20&type=section&id=Commitments) The Group has entered into a non-legally binding memorandum of understanding with Yangshuo Xingyuan Lead-Zinc Mine Co., Ltd. for the proposed acquisition of a non-ferrous metal mining business - The Group entered into a non-legally binding memorandum of understanding with Yangshuo Xingyuan Lead-Zinc Mine Co., Ltd. regarding the acquisition of a non-ferrous metal mining business[50](index=50&type=chunk) [Pledged Assets](index=21&type=section&id=Pledged%20Assets) This section lists the details of the Group's assets pledged to banks as collateral for financing at the end of the reporting period, including property, plant and equipment, financial assets, investment properties, and bank deposits Details of Pledged Assets (As of June 30, 2025) | Asset Type | Amount (HKD thousands) | | :--- | :--- | | Property, plant and equipment | 8,285 | | Financial assets at fair value through profit or loss | 19,274 | | Investment properties | 25,288 | | Bank deposits | 6,148 | | **Total** | **58,995** | [Employees and Remuneration Policy](index=21&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 105 employees, with a remuneration policy based on qualifications, position, and experience, supported by an annual review system for performance evaluation - As of June 30, 2025, the Group had **105 employees** (June 30, 2024: **102 employees**)[52](index=52&type=chunk) - Salaries are determined based on each employee's qualifications, position, and experience, with an annual review system for salary adjustments, bonuses, and promotions[52](index=52&type=chunk) [Foreign Exchange Risk](index=21&type=section&id=Foreign%20Exchange%20Risk) The Group's purchases are denominated in HKD, while sales are primarily in USD, RMB, and HKD, with foreign exchange risk reviewed and monitored periodically, but no derivative instruments or hedging activities were undertaken during the reporting period - The Group's purchases are denominated in **HKD**, while sales are primarily denominated in **USD, RMB, and HKD**[53](index=53&type=chunk) - During the reporting period, the Group did not engage in any derivative activities or hedging activities for foreign exchange risk[54](index=54&type=chunk) [Contingent Liabilities](index=21&type=section&id=Contingent%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)[55](index=55&type=chunk) [Events After Reporting Period](index=21&type=section&id=Events%20After%20Reporting%20Period) Subsequent to the reporting period, the Company entered into a sale and purchase agreement with Zhihua Group Holdings Limited and Wanmao Limited for the disposal of Property B - Subsequent to the reporting period, the Company entered into Sale and Purchase Agreement B with Zhihua Group Holdings Limited and Wanmao Limited for the disposal of Property B[56](index=56&type=chunk) [Directors' and Chief Executive's Interests and/or Short Positions in Shares, Underlying Shares, and Debentures of the Company or its Associated Corporations](index=22&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%2For%20Short%20Positions%20in%20Shares,%20Underlying%20Shares,%20and%20Debentures%20of%20the%20Company%20or%20its%20Associated%20Corporations) This section discloses the long positions of directors and the chief executive in the shares of the Company and its associated corporations as of June 30, 2025, noting that Mr. Cheuk Sin Cheung and Ms. Au Ching Mei jointly hold 51.00% of the Company's shares through their controlled corporation, Hanvey Group Limited Directors' Long Positions in Shares of the Company (As of June 30, 2025) | Name of Director | Capacity/Nature of Interest | Number of Ordinary Shares | Percentage of Total Shares | | :--- | :--- | :--- | :--- | | Mr. Cheuk Sin Cheung | Interest in controlled corporation | 126,225,000 | 51.00% | | Ms. Au Ching Mei, M.H. | Interest in controlled corporation | 126,225,000 | 51.00% | - Mr. Cheuk Sin Cheung and Ms. Au Ching Mei jointly own **51.00%** of the Company's shares through Hanvey Group Limited[58](index=58&type=chunk) Directors' Long Positions in Ordinary Shares of Associated Corporations (As of June 30, 2025) | Name of Director | Name of Associated Corporation | Capacity/Nature of Interest | Number of Ordinary Shares | Percentage of Total Shares | | :--- | :--- | :--- | :--- | | Mr. Cheuk Sin Cheung | Hanvey | Beneficial interest | 1 | 50% | | Ms. Au Ching Mei | Hanvey | Beneficial interest | 1 | 50% | [Substantial Shareholders' Interests and/or Short Positions in Shares and Underlying Shares of the Company](index=23&type=section&id=Substantial%20Shareholders'%20Interests%20and%2For%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) This section discloses that, apart from directors and the chief executive, the substantial shareholder Hanvey Group Limited holds 51.00% of the Company's shares Substantial Shareholders' Long Positions in Shares of the Company (As of June 30, 2025) | Name of Shareholder | Capacity/Nature of Interest | Number of Ordinary Shares | Percentage of Total Shares | | :--- | :--- | :--- | :--- | | Hanvey | Beneficial interest | 126,225,000 | 51.00% | [Purchase, Sale or Redemption of the Company's Listed Securities](index=23&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%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 - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[61](index=61&type=chunk) [Material Investments Held, Material Acquisitions or Disposals of Subsidiaries, Associates and Joint Ventures](index=23&type=section&id=Material%20Investments%20Held,%20Material%20Acquisitions%20or%20Disposals%20of%20Subsidiaries,%20Associates%20and%20Joint%20Ventures) During the reporting period, the Company did not undertake any material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Company had no material investments, material acquisitions, or disposals of subsidiaries, associates, or joint ventures[62](index=62&type=chunk) [Future Plans for Material Investments or Capital Assets](index=23&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) Apart from the memorandum of understanding for the acquisition of a non-ferrous metal mining business disclosed in this interim report, the Group has no other significant investment or capital asset plans for the next year - Except as disclosed in this interim report, the Group has no other material investment or capital asset plans for the next year[63](index=63&type=chunk) [Share Option Scheme](index=23&type=section&id=Share%20Option%20Scheme) The Company adopted a share option scheme in 2018 to incentivize employees and attract talent, but no options have been granted since its adoption, and no outstanding options existed as of June 30, 2025 - The share option scheme was approved and adopted on **June 20, 2018**, with a **10-year validity**, aiming to provide incentives and attract talent[64](index=64&type=chunk) - No share options have been granted since the adoption of the scheme, and as of June 30, 2025, there were no outstanding share options under the Company's share option scheme[66](index=66&type=chunk) - The total number of shares available for grant under the share option scheme was **100,000,000 shares**, representing **10%** of the issued shares as of June 30, 2025[66](index=66&type=chunk) [Competition and Conflicts of Interest](index=24&type=section&id=Competition%20and%20Conflicts%20of%20Interest) During the reporting period, no directors, management shareholders, substantial shareholders, or their associates engaged in any business competing with or conflicting with the Group's business - During the reporting period, none of the Company's directors, management shareholders, substantial shareholders, or any of their respective associates engaged in any business that competes or may compete with the Group's business, or had any other conflicts of interest with the Group[67](index=67&type=chunk) [Corporate Governance Code](index=24&type=section&id=Corporate%20Governance%20Code) The Company complied with the Corporate Governance Code under the GEM Listing Rules during the reporting period, though the roles of Chairman and Chief Executive Officer are held by the same individual, an arrangement the Board believes is in the Group's best interest - During the reporting period, the Company complied with the code provisions of the Corporate Governance Code set out in Appendix C1 to the GEM Listing Rules[68](index=68&type=chunk) - The roles of Chairman and Chief Executive Officer are held by Mr. Cheuk Sin Cheung, which deviates from code provision C.2.1, but the Board believes this arrangement is in the best interest of the Group[68](index=68&type=chunk) [Code of Conduct for Securities Transactions by Directors](index=25&type=section&id=Code%20of%20Conduct%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted a code of conduct for directors' securities transactions and confirmed that directors complied with this code during the reporting period - The Company has adopted a code of conduct for directors' securities transactions, with terms no less exacting than the required standard of dealings set out in Rules 5.48 to 5.67 of the GEM Listing Rules[69](index=69&type=chunk) - During the reporting period, the directors complied with the required standard of dealings and the code of conduct for securities transactions by directors[69](index=69&type=chunk) [Audit Committee](index=25&type=section&id=Audit%20Committee) The Audit Committee has reviewed the unaudited consolidated results contained in this interim report and found them to be in compliance with applicable accounting standards and the GEM Listing Rules - The Audit Committee members include Mr. Yu Sau Ning (Chairman), Ms. Yu Wai Fong, and Mr. Yip Yat Lam[70](index=70&type=chunk) - The Audit Committee has reviewed the Group's unaudited consolidated results for the reporting period and is of the opinion that they were prepared in accordance with applicable accounting standards and the GEM Listing Rules, with adequate disclosures made[70](index=70&type=chunk) [Forward-Looking Statements](index=25&type=section&id=Forward-Looking%20Statements) This section cautions readers that forward-looking statements in the interim report are based on various assumptions, are not guarantees of future performance, and are subject to risks, uncertainties, and assumptions - This interim report contains forward-looking statements regarding the Group's financial position, operating results, and business[71](index=71&type=chunk) - These forward-looking statements reflect the Group's views on future events and are not guarantees of future performance, being subject to certain risks, uncertainties, and assumptions[71](index=71&type=chunk)

Report Overview and Regulatory Information [Disclaimer and GEM Features](index=1&type=section&id=Disclaimer%20and%20GEM%20Features) This report includes disclaimers from the Stock Exchange regarding content accuracy and highlights GEM market's high investment risks for SMEs - The Stock Exchange of Hong Kong Limited accepts no responsibility for this announcement's content, makes no representation as to its accuracy or completeness, and disclaims any liability for losses arising from or in reliance upon it[1](index=1&type=chunk)[11](index=11&type=chunk) - The GEM market offers listing opportunities for SMEs, entailing **higher investment risks**, potential for **significant market volatility**, and no guarantee of high liquidity[10](index=10&type=chunk)[11](index=11&type=chunk) [Company Information and Announcement](index=1&type=section&id=Company%20Information%20and%20Announcement) Hang Wai Group Holdings Limited (Stock Code: 8219) released its unaudited interim results for H1 2025, complying with GEM rules and signed by the Chairman - Hang Wai Group Holdings Limited (Stock Code: **8219**) published its unaudited interim results announcement for the six months ended June 30, 2025[2](index=2&type=chunk)[3](index=3&type=chunk) - The announcement complies with the relevant requirements of the GEM Listing Rules of The Stock Exchange of Hong Kong Limited[3](index=3&type=chunk) - The Board of Directors includes Executive Directors Mr. Cheuk Sin Cheong (Chairman and Chief Executive Officer) and Ms. Au Ching Mei, and Independent Non-executive Directors Mr. Yu Sau Ning, Ms. Yu Wai Fong, and Mr. Yip Yat Lam[4](index=4&type=chunk) Company Information [Board and Committee Composition](index=5&type=section&id=Board%20and%20Committee%20Composition) The company's Board comprises two executive directors, including the Chairman and CEO, and three independent non-executive directors, with established audit, remuneration, and nomination committees - Executive Directors: Mr. Cheuk Sin Cheong (Chairman and Chief Executive Officer), Ms. Au Ching Mei[13](index=13&type=chunk) - Independent Non-executive Directors: Mr. Yu Sau Ning, Ms. Yu Wai Fong, Mr. Yip Yat Lam[14](index=14&type=chunk) - Mr. Yu Sau Ning chairs the Audit Committee and Remuneration Committee, while Mr. Cheuk Sin Cheong chairs the Nomination Committee[15](index=15&type=chunk) [Company Contact and Registration Information](index=5&type=section&id=Company%20Contact%20and%20Registration%20Information) The company secretary is Ms. Pang Yuk Fong, with Ms. Au Ching Mei and Ms. Pang Yuk Fong as authorized representatives, and its headquarters are in Hong Kong with a registered office in the Cayman Islands - The Company Secretary is Ms. Pang Yuk Fong, and the Authorized Representatives are Ms. Au Ching Mei and Ms. Pang Yuk Fong[15](index=15&type=chunk) - The headquarters and principal place of business are in Kwai Chung, New Territories, Hong Kong, with the registered office in the Cayman Islands[15](index=15&type=chunk) - Principal bankers include Bank of China (Hong Kong) Limited and Hang Seng Bank[16](index=16&type=chunk) Financial Summary [Key Financial Performance](index=6&type=section&id=Key%20Financial%20Performance) For the six months ended June 30, 2025, the company's revenue increased by 4.34% to HK$54.06 million, achieving a profit attributable to owners of HK$1.06 million, reversing the prior year's loss Key Financial Data for the Six Months Ended June 30, 2025 | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 54,062 | 51,811 | +4.34% | | Profit/(Loss) attributable to owners of the Company | 1,060 | (8,970) | Turned to profit | | Basic earnings/(loss) per share | 0.43 HK cents | (5.44) HK cents | Turned to profit | Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income [Profit and Loss Overview](index=7&type=section&id=Profit%20and%20Loss%20Overview) For the six months ended June 30, 2025, the Group reported revenue of HK$54.06 million and a gross profit of HK$18.42 million, achieving a profit of HK$1.06 million, a significant improvement from the prior year's loss Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (for the six months ended June 30) | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue | 54,062 | 51,811 | Increase | | Cost of sales | (35,645) | (34,512) | Increase | | Gross profit | 18,417 | 17,299 | Increase | | Other income, gains and losses | 2,613 | (334) | Turned to gain | | Selling and distribution expenses | (1,402) | (1,510) | Decrease | | Administrative expenses | (18,402) | (20,361) | Decrease | | Gain on disposal of a subsidiary | 1,938 | – | New | | Finance costs | (2,011) | (3,918) | Decrease | | Profit/(Loss) before tax | 1,153 | (8,824) | Turned to profit | | Income tax expense | (95) | (148) | Decrease | | Profit/(Loss) for the period | 1,058 | (8,972) | Turned to profit | | Exchange differences on translation | (4,995) | 4,740 | Turned to expense | | Total comprehensive expense for the period | (3,937) | (4,232) | Decrease | | Basic and diluted earnings/(loss) per share | 0.43 HK cents | (5.44) HK cents | Turned to earnings | Condensed Consolidated Statement of Financial Position [Balance Sheet Overview](index=8&type=section&id=Balance%20Sheet%20Overview) As of June 30, 2025, the Group's total non-current assets were HK$21.50 million, total current assets were HK$81.21 million, with net assets at HK$7.66 million, a decrease from the end of 2024 Condensed Consolidated Statement of Financial Position (as at June 30, 2025) | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | **Non-current assets** | | | | | Property, plant and equipment | 11,554 | 12,513 | Decrease | | Investment properties | 9,188 | 9,188 | Stable | | Total non-current assets | 21,497 | 22,448 | Decrease | | **Current assets** | | | | | Inventories | 16,362 | 11,418 | Increase | | Trade receivables | 24,407 | 34,159 | Decrease | | Cash and bank balances | 7,150 | 16,518 | Decrease | | Total current assets | 81,205 | 95,991 | Decrease | | Assets classified as held for sale | 16,100 | 34,902 | Decrease | | **Current liabilities** | | | | | Trade and bills payables | 47,586 | 51,415 | Decrease | | Borrowings | 50,148 | 56,184 | Decrease | | Total current liabilities | 108,698 | 118,542 | Decrease | | Liabilities associated with assets classified as held for sale | 2,447 | 23,205 | Decrease | | Net assets | 7,657 | 11,594 | Decrease | Condensed Consolidated Statement of Changes in Equity [Shareholders' Equity Changes](index=10&type=section&id=Shareholders'%20Equity%20Changes) As of June 30, 2025, equity attributable to owners decreased to HK$8.55 million from HK$12.48 million at year-end 2024, despite a HK$1.06 million profit, due to negative exchange differences in the exchange reserve Condensed Consolidated Statement of Changes in Equity (for the six months ended June 30) | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Share capital | 24,750 | 24,750 | Stable | | Share premium | 52,362 | 52,362 | Stable | | Exchange reserve | (6,888) | (2,001) | Decrease | | Accumulated losses | (67,651) | (68,711) | Decrease in loss | | Equity attributable to owners of the Company | 8,546 | 12,481 | Decrease | | Non-controlling interests | (889) | (887) | Decrease | | Total equity | 7,657 | 11,594 | Decrease | - Profit for the period was **HK$1.06 million**, a turnaround from a loss of HK$8.97 million in the prior period[21](index=21&type=chunk) - Exchange reserve deteriorated from negative **HK$2.00 million** at year-end 2024 to negative **HK$6.89 million** as of June 30, 2025, primarily due to foreign exchange differences from translating overseas operations' financial statements[21](index=21&type=chunk) Condensed Consolidated Statement of Cash Flows [Cash Flow Overview](index=11&type=section&id=Cash%20Flow%20Overview) For the six months ended June 30, 2025, net cash generated from operating activities was HK$0.242 million, with net cash outflows from investing and financing activities, resulting in a reduced cash balance Condensed Consolidated Statement of Cash Flows (for the six months ended June 30) | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Net cash from/(used in) operating activities | 242 | (28,248) | Turned to inflow | | Net cash (used in)/from investing activities | (18) | 7,277 | Turned to outflow | | Net cash used in financing activities | (9,245) | (74) | Outflow increased | | Net decrease in cash and cash equivalents | (9,021) | (21,045) | Decrease narrowed | | Cash and cash equivalents at end of period | 1,881 | (5,281) | Turned to positive | | Cash and bank balances | 7,150 | 627 | Increase | | Bank overdrafts | (5,269) | (5,908) | Decrease | | Cash and cash equivalents as stated in the consolidated cash flow statement | 1,881 | (5,281) | Turned to positive | Notes to the Condensed Consolidated Financial Statements [Company and Accounting Policies](index=12&type=section&id=Company%20and%20Accounting%20Policies) This section details the company's registration, primary ODM watch product business, and financial statement preparation basis, confirming consistent accounting policies with no significant impact from new HKFRS standards [Company Information and Business Nature](index=12&type=section&id=Company%20Information%20and%20Business%20Nature) Hang Wai Group Holdings Limited, incorporated in the Cayman Islands in 2017 and listed on GEM in 2018, operates as an investment holding company with subsidiaries primarily engaged in ODM watch product design, development, manufacturing, and distribution globally - The Company was incorporated in the Cayman Islands on **June 12, 2017**, and listed on GEM of The Stock Exchange of Hong Kong Limited on **July 12, 2018**[23](index=23&type=chunk)[24](index=24&type=chunk) - The Company primarily engages in the design, development, manufacture, and distribution of watch products on an original design manufacturer (ODM) basis for global watch manufacturers, brand owners, and watch importers[23](index=23&type=chunk) [Basis of Preparation and Accounting Policies](index=12&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) The unaudited condensed consolidated interim financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, using consistent accounting policies with no significant impact from new or revised standards - The unaudited condensed consolidated interim financial statements are prepared in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants[25](index=25&type=chunk) - The accounting policies adopted are consistent with those applied in the financial statements for the year ended December 31, 2024[25](index=25&type=chunk) - The adoption of new and revised Hong Kong Financial Reporting Standards has no significant impact on the Group's results and financial position[25](index=25&type=chunk) [Revenue and Segment Information](index=12&type=section&id=Revenue%20and%20Segment%20Information) The Group operates a single ODM segment, with total revenue of HK$54.06 million for the six months ended June 30, 2025, primarily from overseas markets like India, Brazil, and Turkey, showing increased revenue from knocked-down kits and growth in European and South American markets [Revenue and Segment Information Details](index=13&type=section&id=Revenue%20and%20Segment%20Information%20Details) The Group operates solely in the Original Design Manufacturer (ODM) segment, with performance assessed by key operating decision-makers based on product or service type, and revenue primarily generated from India, Brazil, and Turkey - The Group operates only in the Original Design Manufacturer (ODM) operating segment[26](index=26&type=chunk) - The Group's revenue primarily originates from **India, Brazil, and Turkey**[27](index=27&type=chunk) [Revenue, Other Income, Gains and Losses Breakdown](index=13&type=section&id=Revenue,%20Other%20Income,%20Gains%20and%20Losses%20Breakdown) For the six months ended June 30, 2025, total revenue was HK$54.06 million, with knocked-down kits contributing HK$39.67 million, and other income, gains, and losses totaling HK$2.61 million, mainly from net exchange gains and rental income Revenue Sources (for the six months ended June 30) | Revenue Category | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Finished watches | 12,493 | 16,568 | Decrease | | Knocked-down kits | 39,669 | 34,018 | Increase | | Watch parts | 1,900 | 1,225 | Increase | | **Total Revenue** | **54,062** | **51,811** | **Increase** | | Interest income | 168 | 313 | Decrease | | Rental income | 413 | 192 | Increase | | Net exchange gains | 2,115 | 201 | Significant increase | | Miscellaneous income | – | 532 | Decrease | | Net loss on disposal of financial assets at fair value through profit or loss | (83) | (1,572) | Loss decreased | | **Other income, gains and losses** | **2,613** | **(334)** | **Turned to gain** | Revenue by Customer Geographical Location (for the six months ended June 30) | Region | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change | | :--- | :--- | :--- | :--- | | Asia | 26,076 | 32,536 | Decrease | | Europe | 8,672 | 5,251 | Increase | | Pacific Region | 2,930 | 3,032 | Decrease | | South America | 16,384 | 10,992 | Increase | | **Total Revenue** | **54,062** | **51,811** | **Increase** | [Subsidiary Disposal and Pre-tax Profit](index=14&type=section&id=Subsidiary%20Disposal%20and%20Pre-tax%20Profit) The Group completed the disposal of a subsidiary during the reporting period, generating a net gain of HK$1.94 million, contributing to a pre-tax profit of HK$1.15 million, a significant improvement from the prior year's loss, with income tax primarily from Hong Kong profits tax [Gain on Disposal of a Subsidiary](index=14&type=section&id=Gain%20on%20Disposal%20of%20a%20Subsidiary) The company entered into a sale and purchase agreement with Easy Investment Limited (Vendor A) and Billion Riches Limited (Purchaser A) for the disposal of a subsidiary, completed on June 23, 2025, resulting in a net gain of HK$1.94 million - The Company completed the disposal of a subsidiary, with Disposal A achieved on **June 23, 2025**[29](index=29&type=chunk)[31](index=31&type=chunk) Net Gain on Disposal of a Subsidiary | Item | Amount (HK$ thousand) | | :--- | :--- | | Consideration for Disposal A | (14,250) | | Investment in disposed company | 19,660 | | Carrying amount of assets and liabilities of disposed company as at June 23, 2024 | (3,675) | | Exchange differences arising from translation of overseas operations | 203 | | **Net gain on Disposal A** | **1,938** | [Profit Before Tax](index=15&type=section&id=Profit%20Before%20Tax) For the six months ended June 30, 2025, the Group recorded a profit before tax of HK$1.15 million, a significant improvement from the HK$8.82 million loss in the prior period, with depreciation of property, plant, and equipment at HK$2.13 million Profit Before Tax (for the six months ended June 30) | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Profit/(Loss) before tax | 1,153 | (8,824) | | Depreciation of property, plant and equipment | 2,130 | 2,043 | [Income Tax](index=15&type=section&id=Income%20Tax) During the reporting period, income tax expense was HK$0.095 million, primarily from Hong Kong profits tax, with no PRC enterprise income tax, representing a decrease from the prior period Income Tax Expense (for the six months ended June 30) | Tax Category | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong profits tax | 95 | 115 | | PRC enterprise income tax | – | 33 | | **Total Tax Expense** | **95** | **148** | [Assets, Liabilities and EPS](index=15&type=section&id=Assets,%20Liabilities%20and%20EPS) This section details assets and liabilities classified as held for sale, EPS calculation, property, plant, and equipment movements, and aging analysis of trade receivables and payables, noting the disposal of Shenzhen Fukui Precision Technology Co Ltd and a Hong Kong property, resulting in basic EPS of 0.43 HK cents [Assets and Liabilities Classified as Held for Sale](index=15&type=section&id=Assets%20and%20Liabilities%20Classified%20as%20Held%20for%20Sale) On December 17, 2024, the Group agreed to dispose of its entire equity interest and sales loan in Shenzhen Fukui Precision Technology Co Ltd for RMB18.20 million and a Hong Kong property for HK$16.40 million, with Disposal A completed on June 23, 2025 - The Group agreed to dispose of its entire equity interest and sales loan in its wholly-owned subsidiary, Shenzhen Fukui Precision Technology Co Ltd, for a consideration of **RMB18.20 million** (approximately **HK$19.66 million**)[34](index=34&type=chunk) - The Group agreed to dispose of a property located in Hong Kong for a cash consideration of **HK$16.40 million**[34](index=34&type=chunk) Assets and Liabilities Classified as Held for Sale (HK$ thousand) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Total assets classified as held for sale | 16,100 | 34,902 | | Total liabilities associated with assets classified as held for sale | 2,447 | 23,205 | [Earnings/(Loss) Per Share](index=17&type=section&id=Earnings%2F%28Loss%29%20Per%20Share) For the six months ended June 30, 2025, profit attributable to owners was approximately HK$1.06 million, resulting in basic earnings per share of 0.43 HK cents, with diluted EPS being the same due to no potential dilutive ordinary shares - For the six months ended June 30, 2025, profit attributable to owners of the Company was approximately **HK$1.06 million**, with basic earnings per share of **0.43 HK cents**[38](index=38&type=chunk) - Diluted earnings per share is the same as basic earnings per share as there were no potential dilutive ordinary shares during these reporting periods[39](index=39&type=chunk) [Property, Plant and Equipment](index=17&type=section&id=Property,%20Plant%20and%20Equipment) During the interim period, the Group acquired approximately HK$0.13 million in property, plant, and equipment, and as of June 30, 2025, approximately HK$8.29 million of mortgaged property, plant, and equipment was pledged as collateral for bank financing - During the interim period, the Group paid approximately **HK$0.13 million** for the purchase of property, plant and equipment (2024: HK$0.06 million)[40](index=40&type=chunk) - As of June 30, 2025, approximately **HK$8.29 million** of mortgaged property, plant and equipment was pledged as collateral for the Group's bank financing[40](index=40&type=chunk) [Trade and Other Receivables, Deposits and Prepayments](index=17&type=section&id=Trade%20and%20Other%20Receivables,%20Deposits%20and%20Prepayments) As of June 30, 2025, net trade receivables decreased to HK$24.41 million from HK$34.16 million at year-end 2024, with total other receivables, deposits, and prepayments at HK$13.44 million, and the largest portion of trade receivables falling within 0 to 30 days aging Aging Analysis of Trade Receivables (net of impairment allowance) (HK$ thousand) | Aging | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | 0 to 30 days | 15,771 | 10,700 | | 31 to 60 days | 1,147 | 9,043 | | 61 to 90 days | 451 | 4,556 | | Over 90 days | 7,038 | 9,860 | | **Total** | **24,407** | **34,159** | - The Group generally allows trade customers a credit period of **30 to 90 days**, with longer credit periods exceeding 90 days granted to long-term relationship customers[42](index=42&type=chunk) [Trade and Other Payables, Accruals and Provisions](index=18&type=section&id=Trade%20and%20Other%20Payables,%20Accruals%20and%20Provisions) As of June 30, 2025, total trade and bills payables decreased to HK$47.59 million from HK$51.42 million at year-end 2024, with other payables and accruals totaling HK$4.53 million, and trade payables typically having a credit period of 30 to 120 days Trade and Bills Payables (HK$ thousand) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade payables | 24,422 | 22,715 | | Bills payable | 23,164 | 28,700 | | **Total** | **47,586** | **51,415** | Aging Analysis of Trade Payables (HK$ thousand) | Aging | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | 0 to 30 days | 7,968 | 4,742 | | 31 to 60 days | 4,981 | 5,676 | | 61 to 90 days | 6,550 | 7,131 | | 91 to 120 days | 1,571 | 1,442 | | Over 120 days | 3,352 | 3,724 | | **Total** | **24,422** | **22,715** | - The credit period for trade payables typically ranges from **30 to 120 days**, and the Group has established financial risk management policies to ensure timely payments[43](index=43&type=chunk) Management Discussion and Analysis [Business Review and Outlook](index=20&type=section&id=Business%20Review%20and%20Outlook) The Group, primarily engaged in ODM watch products, saw a 4.34% revenue increase despite an uncertain overseas market, with an improved watch industry confidence index, and plans to focus on core business, product design, and Southeast Asian market demand [Business Review](index=20&type=section&id=Business%20Review) The Group primarily designs, develops, manufactures, and distributes watch products on an Original Design Manufacturer (ODM) basis for global watch manufacturers, achieving approximately HK$54.06 million in revenue for the period, a 4.34% increase from 2024, alongside a rise in the watch industry's export confidence index - The Group primarily engages in the design, development, manufacture, and distribution of watch products on an Original Design Manufacturer (ODM) basis for global watch manufacturers, brand owners, and watch importers[45](index=45&type=chunk) - For the six months ended June 30, 2025, the Group's revenue was approximately **HK$54.06 million**, an increase of approximately **4.34%** compared to the same period in 2024[47](index=47&type=chunk) - The HKTDC Export Confidence Index for the watch industry rose by **10.8 points** from **41.3** in Q2 2024 to **52.1** in Q2 2025[47](index=47&type=chunk) [Prospects](index=20&type=section&id=Prospects) Despite an uncertain overseas business environment and US-China trade tensions, the watch industry faces innovation challenges but traditional mechanical watches retain a strong luxury market position, prompting the Group to focus on high-tech development, personalized services, and the significant demand for automatic mechanical and quartz watches in Southeast Asia - The overseas market business environment remains uncertain, with the US-China tariff trade war impacting market sentiment, though an agreement framework has been reached, leading to a more moderate market atmosphere[49](index=49&type=chunk) - The watch industry faces challenges from technological innovation, diversified consumer demands, and intensified market competition, yet the stable position of traditional mechanical watches in the luxury market presents opportunities[49](index=49&type=chunk) - The Group will closely monitor the substantial demand for automatic mechanical and quartz watches in the Southeast Asian market, continuing to focus on core business development, improving product design, and strengthening development capabilities[49](index=49&type=chunk)[50](index=50&type=chunk) [Financial Performance and Resources](index=21&type=section&id=Financial%20Performance%20and%20Resources) During the reporting period, the Group's gross profit increased by 6.47%, while administrative and finance costs significantly decreased due to reduced staff costs and bank borrowings; no interim dividend was declared, capital structure remained stable, and liquidity ratios were 0.88x (current) and 969.31% (gearing), with assets pledged as collateral [Financial Review](index=21&type=section&id=Financial%20Review) For the six months ended June 30, 2025, the Group's gross profit increased by approximately 6.47% to HK$18.42 million, administrative expenses decreased by 9.63% to HK$18.40 million due to lower staff costs, and finance costs decreased by 48.72% to HK$2.01 million due to reduced bank borrowings - The Group's gross profit was approximately **HK$18.42 million**, an increase of approximately **6.47%** compared to the same period in 2024, primarily due to increased sales[51](index=51&type=chunk) - Administrative expenses decreased by approximately **9.63%** to **HK$18.40 million**, mainly due to a reduction in staff costs[51](index=51&type=chunk) - Finance costs decreased by approximately **48.72%** to **HK$2.01 million**, primarily due to a reduction in bank borrowings[51](index=51&type=chunk) [Interim Dividend](index=21&type=section&id=Interim%20Dividend) The Board did not declare any interim dividend for the reporting period (2024: nil) - The Board did not declare any interim dividend for the reporting period (2024: nil)[52](index=52&type=chunk) [Capital Structure](index=21&type=section&id=Capital%20Structure) The company's capital structure, comprising issued share capital and reserves, remained unchanged during the reporting period, with the Board regularly reviewing it - The Company's capital structure remained unchanged during the reporting period, primarily consisting of issued share capital and reserves[53](index=53&type=chunk) [Liquidity and Financial Resources](index=21&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's cash and bank balances were approximately HK$7.15 million, with a current ratio of 0.88x and a gearing ratio of 969.31%, which the Board deems sufficient for business operations Liquidity and Financial Resources (HK$ thousand) | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Cash and bank balances | 7,150 | 630 | | Current ratio | 0.88x | 1.01x | | Gearing ratio | 969.31% | 730.06% | - The Directors believe that as of the date of this interim report, the Group's financial resources are sufficient to support its business and operations[55](index=55&type=chunk) [Commitments and Pledge of Assets](index=21&type=section&id=Commitments%20and%20Pledge%20of%20Assets) The Group entered a non-legally binding MOU for a non-ferrous metal mining business acquisition and has pledged assets totaling HK$58.995 million, including property, plant, and equipment, financial assets, investment properties, and bank deposits, as collateral for bank financing - The Group entered into a non-legally binding Memorandum of Understanding with Yangshuo County Xingyuan Lead-Zinc Mine Co Ltd regarding the acquisition of a non-ferrous metal mining business[56](index=56&type=chunk) Total Pledged Assets (HK$ thousand) | Pledged Asset Category | Amount (HK$ thousand) | | :--- | :--- | | Property, plant and equipment | 8,285 | | Financial assets at fair value through profit or loss | 19,274 | | Investment properties | 25,288 | | Bank deposits | 6,148 | | **Total** | **58,995** | [Employees, Risks and Post-Reporting Events](index=22&type=section&id=Employees,%20Risks%20and%20Post-Reporting%20Events) As of June 30, 2025, the Group employed 105 staff with remuneration based on qualifications and performance, monitored foreign exchange risks without derivative or hedging activities, reported no significant contingent liabilities, and disclosed a post-reporting period property disposal [Employees and Remuneration Policies](index=22&type=section&id=Employees%20and%20Remuneration%20Policies) As of June 30, 2025, the Group had 105 employees, with salaries determined by qualifications, position, and experience, and an annual review system for performance-based adjustments - As of June 30, 2025, the Group had **105 employees** (June 30, 2024: 102 employees)[58](index=58&type=chunk) - Salaries are determined based on each employee's qualifications, position, and experience, with an annual review system to assess performance for salary adjustments, bonuses, and promotions[58](index=58&type=chunk) [Foreign Exchange Risk](index=22&type=section&id=Foreign%20Exchange%20Risk) The Group's purchases are denominated in HKD, while sales are primarily in USD, RMB, and HKD; foreign exchange risk is monitored, but no derivative or hedging activities were undertaken during the reporting period - The Group's purchases are denominated in HKD, while sales are primarily denominated in **USD, RMB, and HKD**[59](index=59&type=chunk) - During the reporting period, the Group did not engage in any derivative activities or hedging activities for foreign exchange risk[60](index=60&type=chunk) [Contingent Liabilities](index=22&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities (December 31, 2024: nil) - As of June 30, 2025, the Group had no significant contingent liabilities (December 31, 2024: nil)[61](index=61&type=chunk) [Events After Reporting Period](index=22&type=section&id=Events%20After%20Reporting%20Period) Subsequent to the reporting period, the Company and Zhihua Group Holdings Limited (Vendor B) entered into a sale and purchase agreement with Wanmao Limited (Purchaser B) for the conditional disposal of Property B - Subsequent to the reporting period, the Company and Zhihua Group Holdings Limited entered into a sale and purchase agreement with Wanmao Limited concerning the disposal of Property B[62](index=62&type=chunk) [Equity and Investment Information](index=23&type=section&id=Equity%20and%20Investment%20Information) This section details the interests of directors, chief executives, and substantial shareholders in the company's shares, noting Mr. Cheuk Sin Cheong and Ms. Au Ching Mei's 51.00% stake through Wanyi Group Limited; the company made no purchases, sales, or redemptions of listed securities, nor any material investments or disposals of subsidiaries during the period, and no share options have been granted since the 2018 scheme adoption [Directors' and Chief Executive's Interests](index=23&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests) As of June 30, 2025, Executive Directors Mr. Cheuk Sin Cheong and Ms. Au Ching Mei are deemed to have interests in 126,225,000 ordinary shares of the Company, representing 51.00% of the total shares, through their equally controlled corporate entity, Wanyi Group Limited Directors' and Chief Executive's Long Positions in the Company's Shares (as at June 30, 2025) | Director Name | Capacity/Nature of Interest | Number of Ordinary Shares Interested | Percentage of Total Shares | | :--- | :--- | :--- | :--- | | Mr. Cheuk Sin Cheong | Interest in controlled corporation | 126,225,000 | 51.00% | | Ms. Au Ching Mei | Interest in controlled corporation | 126,225,000 | 51.00% | - Mr. Cheuk Sin Cheong and Ms. Au Ching Mei legally and beneficially own equally the entire issued share capital of Wanyi Group Limited, which holds **126,225,000 shares** of the Company[64](index=64&type=chunk) [Substantial Shareholders' Interests](index=24&type=section&id=Substantial%20Shareholders'%20Interests) As of June 30, 2025, Wanyi Group Limited is a substantial shareholder, beneficially owning 126,225,000 ordinary shares, representing 51.00% of the Company's total shares, excluding directors or the chief executive Substantial Shareholders' Long Positions in the Company's Shares (as at June 30, 2025) | Shareholder Name | Capacity/Nature of Interest | Number of Ordinary Shares Interested | Percentage of Total Shares | | :--- | :--- | :--- | :--- | | Wanyi Group Limited | Beneficial interest | 126,225,000 | 51.00% | [Securities Transactions and Material Investments](index=24&type=section&id=Securities%20Transactions%20and%20Material%20Investments) During the reporting period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of its listed securities, nor were there any material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures, with no other significant investment or capital asset plans for the coming year - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[67](index=67&type=chunk) - During the reporting period, the Company had no material investments, material acquisitions, or disposals of subsidiaries, associates, and joint ventures[68](index=68&type=chunk) - Except as disclosed in this interim report, the Group has no other material investment or capital asset plans for the coming year[69](index=69&type=chunk) [Share Option Scheme](index=24&type=section&id=Share%20Option%20Scheme) The Company's share option scheme, adopted on June 20, 2018, for a 10-year term, aims to reward and retain high-quality employees, with no options granted since its adoption, and 100,000,000 shares available for grant as of June 30, 2025, representing 10% of issued shares - The Company's share option scheme was approved and adopted by shareholders on **June 20, 2018**, with a validity period of **10 years**[70](index=70&type=chunk) - The purpose of the share option scheme is to provide incentives or rewards for participants' contributions to the Group and/or enable the Group to recruit and retain high-quality employees[70](index=70&type=chunk) - No share options have been granted since the scheme's adoption on June 20, 2018, and as of June 30, 2025, the total number of shares available for grant under the scheme is **100,000,000 shares**, representing **10%** of the Company's issued shares[72](index=72&type=chunk) [Corporate Governance](index=25&type=section&id=Corporate%20Governance) During the reporting period, no directors, management shareholders, or substantial shareholders engaged in competing businesses or conflicts of interest; the company complied with GEM Listing Rules' Corporate Governance Code, despite the Chairman and CEO roles being combined, and adopted a code of conduct for directors' securities transactions, with the Audit Committee reviewing financial information [Competition and Conflicts of Interest](index=25&type=section&id=Competition%20and%20Conflicts%20of%20Interest) During the reporting period, no directors, management shareholders, substantial shareholders, or their associates engaged in any business competing with the Group or had any other conflicts of interest - During the reporting period, no directors, management shareholders, substantial shareholders, or any of their respective associates engaged in any business competing or likely to compete with the Group, nor did they have any other conflicts of interest with the Group[73](index=73&type=chunk) [Corporate Governance Code](index=25&type=section&id=Corporate%20Governance%20Code) During the reporting period, the Company complied with the Corporate Governance Code provisions in Appendix C1 of the GEM Listing Rules, with the Board deeming the combined roles of Chairman and Chief Executive Officer, held by Mr. Cheuk Sin Cheong, to be in the Group's best interest - During the reporting period, the Company complied with the code provisions of the Corporate Governance Code set out in Appendix C1 to the GEM Listing Rules[74](index=74&type=chunk) - The roles of Chairman and Chief Executive Officer are performed by Mr. Cheuk Sin Cheong, an arrangement the Board believes benefits the Group's business, strengthens stable and consistent leadership, and is in the Group's best interest[74](index=74&type=chunk) [Code of Conduct for Securities Transactions by Directors](index=26&type=section&id=Code%20of%20Conduct%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted a code of conduct for directors' securities transactions, with terms no less exacting than the required standards set out in the GEM Listing Rules, and directors complied with this code during the reporting period - The Company has adopted a code of conduct for securities transactions by directors, with terms no less exacting than the required standards set out in the GEM Listing Rules[75](index=75&type=chunk) - During the reporting period, the directors complied with the required standards and the code of conduct for securities transactions by directors[75](index=75&type=chunk) [Audit Committee](index=26&type=section&id=Audit%20Committee) The Company has established an Audit Committee, chaired by Mr. Yu Sau Ning, which has reviewed the Group's unaudited consolidated results for the reporting period and confirmed their preparation in accordance with applicable accounting standards and GEM Listing Rules, with adequate disclosure - The Company has established an Audit Committee in compliance with the GEM Listing Rules and the Corporate Governance Code, with Mr. Yu Sau Ning as Chairman[76](index=76&type=chunk) - The Audit Committee has reviewed the Group's unaudited consolidated results for the reporting period and is of the opinion that they were prepared in accordance with applicable accounting standards and the GEM Listing Rules, and that adequate disclosure has been made[76](index=76&type=chunk) [Forward-Looking Statements](index=26&type=section&id=Forward-Looking%20Statements) This interim report contains forward-looking statements regarding the Group's financial condition, operating results, and business, which are based on various assumptions and are not guarantees of future performance, being subject to risks, uncertainties, and assumptions - This interim report contains forward-looking statements regarding the Group's financial condition, operating results, and business[77](index=77&type=chunk) - These statements are based on various assumptions about the Group's current and future business strategies and its future operating environment, are not guarantees of future performance, and are subject to certain risks, uncertainties, and assumptions[77](index=77&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因 倚賴該等內容而引致的任何損失承擔任何責任。 Cirrus Aircraft Limited 西銳飛機有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2507） 2025年中期業績公告 西銳飛機有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣佈本公司及 其附屬公司截至2025年6月30日止六個月之未經審核簡明合併中期業績。本公 告列載本公司2025年中報（「2025年中報」）全文，符合香港聯合交易所有限公司 （「聯交所」）證券上市規則有關中期業績初步公告所附資料的相關規定。 該等中期業績已由董事會審計、風險控制、合規委員會審閱。 本中期業績公告將刊載於聯交所網站 www.hkexnews.hk 及本公司網 站 https://cirrusaircraft.com 。2025年中報將適時刊載於同一網站。 承董事會命 西銳飛機有限公司 主席兼非執行董事 楊雷先生 香港，2025年8月26日 於本公告日期，董事會包括主席兼非執行董事楊雷 ...