[Management Discussion and Analysis](index=5&type=section&id=Management%20Discussion%20and%20Analysis) This section analyzes the group's financial performance, liquidity, and capital resources, detailing operating results and key financial metrics [Overview and Business Segments](index=5&type=section&id=Overview%20and%20Business%20Segments) The group's revenue primarily stems from Content Solutions and Technology Products and Services, encompassing film conversion, cinema system sales, leasing, and maintenance - The Group's revenue primarily comes from two core business segments: Content Solutions (film conversion and distribution) and Technology Products and Services (cinema system sales, leasing, and maintenance)[10](index=10&type=chunk)[11](index=11&type=chunk)[12](index=12&type=chunk) 2025 Fiscal Year First Half Revenue by Segment | Segment | Revenue (Thousand USD) | % of Total Revenue | | :--- | :--- | :--- | | Content Solutions | 20,801 | 36.0% | | Technology Products and Services | 36,230 | 62.7% | | All Other | 771 | 1.3% | | **Total** | **57,802** | **100.0%** | 2025 Fiscal Year First Half Gross Profit by Segment | Segment | Gross Profit (Thousand USD) | Gross Margin (%) | | :--- | :--- | :--- | | Content Solutions | 19,197 | 92.3% | | Technology Products and Services | 20,686 | 57.1% | | All Other | 217 | 28.1% | | **Total** | **40,100** | **69.4%** | [Content Solutions](index=5&type=section&id=Content%20Solutions) Content Solutions revenue is generated from a percentage of box office receipts from Hollywood, Chinese, and other films converted to IMAX format - Content Solutions revenue is derived from a percentage of box office receipts from partner films (Hollywood, Chinese, etc.) converted and distributed to the IMAX cinema network[11](index=11&type=chunk) [Technology Products and Services](index=6&type=section&id=Technology%20Products%20and%20Services) Technology Products and Services revenue includes sales and leases of IMAX cinema systems, revenue-sharing, maintenance, and other cinema-related item sales - Technology Products and Services revenue comprises: - **Sales and Sales-Type Leases**: design, manufacturing, and installation fees for cinema systems - **Revenue-Sharing Arrangements**: leasing systems to exhibitors for future box office revenue sharing - **Maintenance Revenue**: ongoing maintenance, warranty, and technical support services - **Other Cinema Revenue**: aftermarket sales of 3D glasses, screens, and more[12](index=12&type=chunk)[14](index=14&type=chunk) [Comparative Operating Results](index=10&type=section&id=Comparative%20Operating%20Results) In H1 2025, total revenue grew 31.7% to $57.8 million, operating profit increased 93.7% to $30.2 million, and net profit rose 88.9% to $23.9 million, driven by Content Solutions' strong box office recovery and improved gross margins H1 2025 vs H1 2024 Operating Results | Metric (Thousand USD) | H1 2025 | H1 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 57,802 | 43,901 | +31.7% | | Gross Profit | 40,100 | 25,102 | +59.8% | | Operating Profit | 30,196 | 15,592 | +93.7% | | Profit for the Period | 23,893 | 12,648 | +88.9% | | Adjusted Profit | 24,815 | 13,401 | +85.2% | - Revenue growth was primarily driven by an **$11.5 million increase** in Content Solutions revenue and a **$2.1 million increase** in Technology Products and Services revenue[26](index=26&type=chunk) [Revenue Comparison](index=11&type=section&id=Revenue%20Comparison) Total revenue increased by 31.7%, primarily driven by Content Solutions, which surged 123.7% to $20.8 million due to a 91.2% rise in IMAX format film box office to $205.5 million and higher-commission Chinese film box office share - Content Solutions revenue increased by **123.7% year-on-year**, primarily due to increased box office revenue and a higher proportion of local language films with higher commission rates; IMAX format film box office revenue increased by **91.2% year-on-year** to **$205.5 million**[27](index=27&type=chunk) - Technology Products and Services revenue increased by **6.2% year-on-year**, mainly due to a **$7 million increase** in revenue-sharing arrangements, partially offset by a **$5.5 million decrease** in sales and sales-type lease revenue[29](index=29&type=chunk) IMAX Cinema System Installations | Business Arrangement | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Sales and Sales-Type Lease Arrangements | 9 | 4 | | Revenue-Sharing Arrangements | 15 | 6 | | **Total** | **24** | **10** | [Cost of Sales Comparison](index=14&type=section&id=Cost%20of%20Sales%20Comparison) Total cost of sales decreased by 5.9% to $17.7 million, with Content Solutions' cost of sales falling 30.4% due to fewer Hollywood films screened and lower per-film costs, while Technology Products and Services' costs slightly decreased by 3.1% from reduced depreciation under revenue-sharing arrangements - The Group's total cost of sales decreased by **5.9%** from **$18.8 million** to **$17.7 million**[36](index=36&type=chunk) - Content Solutions' cost of sales decreased by **30.4%**, primarily due to fewer Hollywood films screened in mainland China and lower DMR conversion and marketing costs per film[37](index=37&type=chunk) [Gross Profit and Gross Margin Comparison](index=15&type=section&id=Gross%20Profit%20and%20Gross%20Margin%20Comparison) Group gross profit significantly increased by 59.8% to $40.1 million, with gross margin improving from 57.2% to 69.4%, primarily driven by Content Solutions' 174.3% gross profit growth to $19.2 million and 92.3% gross margin, reflecting network operating leverage - Overall group gross profit increased by **59.8% year-on-year**, with gross margin improving from **57.2%** to **69.4%**[43](index=43&type=chunk) - Content Solutions gross profit increased by **174.3%**, with gross margin rising from **75.4%** to **92.3%**, primarily due to operating leverage from **91.2% box office growth** and reduced costs[44](index=44&type=chunk) - Technology Products and Services gross profit increased by **14.4%**, with gross margin rising from **53.1%** to **57.1%**[45](index=45&type=chunk) [Other Expenses and Profit Comparison](index=16&type=section&id=Other%20Expenses%20and%20Profit%20Comparison) Selling, general, and administrative expenses slightly increased by 2.9%, other operating expenses rose due to higher licensing fees to IMAX Corporation from increased revenue, and financial asset impairment shifted from provision to reversal due to enhanced collection efforts, resulting in a period profit increase of 88.9% to $23.9 million - Selling, general, and administrative expenses slightly increased by **2.9%** to **$7 million**[50](index=50&type=chunk) - Financial asset impairment impact shifted from a **$0.4 million provision** in the prior period to a **$0.1 million reversal** in the current period, mainly due to enhanced collection efforts for trade receivables[52](index=52&type=chunk)[19](index=19&type=chunk) - Income tax expense increased by **86.8%** to **$7.1 million** due to a significant increase in profit before tax[55](index=55&type=chunk) - Profit for the period was **$23.9 million**, compared to **$12.6 million** in the prior period[56](index=56&type=chunk) [Liquidity and Capital Resources](index=18&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the group's net current assets increased to $191.3 million from $164.7 million at year-end 2024, with cash and cash equivalents rising to $94.2 million, reflecting capital management goals to ensure going concern, maximize shareholder returns, and maintain an optimal capital structure Liquidity Position (Thousand USD) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | 226,116 | 198,702 | | Total Current Liabilities | 34,839 | 34,014 | | **Net Current Assets** | **191,277** | **164,688** | | Cash and Cash Equivalents | 94,172 | 80,049 | - The increase in net current assets was primarily attributable to a **$15.4 million increase** in trade and other receivables and a **$14.1 million increase** in cash and cash equivalents[59](index=59&type=chunk) - Capital management objectives include safeguarding the ability to continue as a going concern, maximizing shareholder returns, and optimizing the capital structure to reduce the weighted average cost of capital[61](index=61&type=chunk) [Cash Flow Analysis](index=20&type=section&id=Cash%20Flow%20Analysis) In H1 2025, net cash from operating activities was $19.3 million, largely consistent with the prior period, while net cash used in investing activities was $3.2 million, primarily for cinema equipment under revenue-sharing arrangements, and net cash used in financing activities was $2.2 million, mainly for share repurchases and equity incentive settlements Condensed Cash Flow Statement (Thousand USD) | Cash Flow Activity | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 19,295 | 19,657 | | Net Cash Used in Investing Activities | (3,187) | (3,216) | | Net Cash Used in Financing Activities | (2,209) | (1,492) | | **Increase in Cash and Cash Equivalents for the Period** | **14,123** | **14,746** | - Net cash inflow from operating activities was **$19.3 million**, primarily from **$31 million** in profit before tax, partially offset by working capital changes (mainly increased trade receivables) and taxes paid after adjusting for non-cash items[62](index=62&type=chunk) - Net cash outflow from investing activities was **$3.2 million**, primarily for the installation of IMAX cinema equipment under comprehensive revenue-sharing arrangements[64](index=64&type=chunk) - Net cash outflow from financing activities was **$2.2 million**, mainly for **$1.5 million** in share repurchases[66](index=66&type=chunk) [Capital Commitments and Working Capital](index=21&type=section&id=Capital%20Commitments%20and%20Working%20Capital) As of June 30, 2025, the group's capital commitments totaled $1.3 million, primarily for property, plant, and equipment acquisitions, with working capital needs met by operating cash flow and an unutilized RMB 400 million (approximately $55.8 million) unsecured revolving credit facility from Bank of China and HSBC - As of June 30, 2025, contracted but unprovided capital expenditure amounted to **$1.3 million**[69](index=69&type=chunk) - The Group has unsecured revolving credit facilities totaling up to **RMB 400 million** (approximately **$55.8 million**) with Bank of China and HSBC to meet working capital requirements[73](index=73&type=chunk) - As of June 30, 2025, the Group had no outstanding borrowing capital, bank overdrafts, or other similar debts[74](index=74&type=chunk)[78](index=78&type=chunk) [Key Financial Ratios and Dividends](index=24&type=section&id=Key%20Financial%20Ratios%20and%20Dividends) As of June 30, 2025, the capital-to-debt ratio decreased from 21.7% to 20.0% due to increased equity, while the adjusted profit margin significantly improved from 30.5% to 42.9%, and the board resolved not to declare an interim dividend for the six months ended June 30, 2025 Key Financial Ratios | Ratio | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Capital-to-Debt Ratio | 20.0% | 21.7% | | **Ratio** | **H1 2025** | **H1 2024** | | Adjusted Profit Margin | 42.9% | 30.5% | - The Board has resolved not to declare any interim dividend for the six months ended June 30, 2025[84](index=84&type=chunk) [Corporate Governance Summary and Other Information](index=26&type=section&id=Corporate%20Governance%20Summary%20and%20Other%20Information) This section outlines the company's share repurchase activities, adherence to corporate governance principles, and details on connected transactions and equity-based compensation plans [Share Repurchase and Corporate Governance](index=26&type=section&id=Share%20Repurchase%20and%20Corporate%20Governance) In the six months ended June 30, 2025, the company repurchased 1,495,900 listed shares for approximately HKD 11.27 million on the Stock Exchange, while maintaining high corporate governance standards and public float, with minor exceptions for director attendance at the AGM - For the six months ended June 30, 2025, the company repurchased **1,495,900 shares** on the Stock Exchange, totaling approximately **HKD 11.27 million**[87](index=87&type=chunk)[88](index=88&type=chunk) - The company is committed to maintaining high corporate governance practices and has complied with all code provisions of the Corporate Governance Code, with minor exceptions for certain directors' absence from the Annual General Meeting[91](index=91&type=chunk)[93](index=93&type=chunk) - The company has established Audit, Remuneration, and Nomination Board Committees to manage and oversee specific matters[97](index=97&type=chunk) [Connected Transactions](index=29&type=section&id=Connected%20Transactions) The group engages in various ongoing connected transactions with its controlling shareholder, IMAX Corporation and its subsidiaries, primarily involving equipment supply, technology and trademark licensing, and film DMR conversion and distribution services, which are fundamental to the group's operations and comply with Listing Rules - The Group has multiple ongoing connected transactions with its controlling shareholder, IMAX Corporation, which are crucial to the Group's business and cover technology, brand, equipment, and content services[104](index=104&type=chunk) H1 2025 Key Connected Transaction Amounts (Thousand USD) | Transaction Type | Payable to IMAX Corp. | Receivable from IMAX Corp. | | :--- | :--- | :--- | | Equipment Supply | 3,768 | - | | Master Distribution Agreement (Hollywood Films) | 1,277 | 3,255 | | DMR Services (Chinese Films) | 504 | 347 | | Technology License | 1,803 | - | | Trademark License | 1,202 | - | | Enhanced Business | 64 | 722 | [Discloseable and Announceable Connected Transactions](index=29&type=section&id=Discloseable%20and%20Announceable%20Connected%20Transactions) These transactions require disclosure and announcement under Listing Rules but are exempt from independent shareholder approval, including trademark and technology licensing, DMR services, and Enhanced business agreements, forming the framework for the group's core technology, brand authorization, content production, and back-office support - Trademark License Agreement: IMAX Corporation grants the Group exclusive rights to use IMAX-related trademarks in Greater China, with a fee of **2% of total revenue**; approximately **$1.202 million** was paid in H1 2025[111](index=111&type=chunk)[121](index=121&type=chunk)[124](index=124&type=chunk) - Technology License Agreement: IMAX Corporation grants the Group exclusive rights to use related equipment and service technologies, with a fee of **3% of total revenue**; approximately **$1.803 million** was paid in H1 2025[126](index=126&type=chunk)[137](index=137&type=chunk)[139](index=139&type=chunk) - DMR Services Agreement: IMAX Corporation provides DMR conversion services for Chinese films, with a fee of actual cost plus **10%**; approximately **$0.504 million** was paid in H1 2025[143](index=143&type=chunk)[147](index=147&type=chunk)[150](index=150&type=chunk) - Enhanced Business Agreement: The Group collaborates with IMAX Corporation to develop the IMAX Enhanced business, involving license fee payments and revenue sharing; in H1 2025, the Group paid approximately **$0.064 million** in license fees and received approximately **$0.722 million** in revenue sharing[168](index=168&type=chunk)[173](index=173&type=chunk) [Discloseable, Announceable, and Shareholder Approved Connected Transactions](index=48&type=section&id=Discloseable%2C%20Announceable%2C%20and%20Shareholder%20Approved%20Connected%20Transactions) These transactions, due to their significant value, require disclosure, announcement, and shareholder approval (though exempted), primarily including the Equipment Supply Agreement and Master Distribution Agreement, which are core channels for the group to acquire IMAX cinema system hardware and Hollywood film content - Equipment Supply Agreement: IMAX Corporation supplies cinema system-related equipment to the Group, with a purchase price of actual cost plus **10%**; in H1 2025, the Group paid approximately **$3.768 million** for equipment for **24 systems**[185](index=185&type=chunk)[188](index=188&type=chunk)[189](index=189&type=chunk) - Master Distribution Agreement: IMAX Corporation provides Hollywood films for screening in Greater China, with the Group paying a fixed conversion fee and receiving a portion of box office revenue; in H1 2025, the Group paid **$1.277 million** in conversion fees for **8 films** and received **$3.255 million** in revenue[192](index=192&type=chunk)[197](index=197&type=chunk)[204](index=204&type=chunk) [Equity and Remuneration](index=57&type=section&id=Equity%20and%20Remuneration) This report discloses shareholdings of directors, key executives, and major shareholders in the company and its associated corporations (IMAX Corporation), detailing the group's comprehensive remuneration policy and long-term incentive plans, including share option, RSU, and PSU schemes, designed to attract and motivate talent - Disclosures include shareholdings of directors, key executives, and major shareholders (IMAX Corporation and its subsidiaries) in the company[207](index=207&type=chunk)[213](index=213&type=chunk) - The Group's remuneration policy aims to attract and retain talent by linking compensation to the Group's annual performance[215](index=215&type=chunk) - The Group has three long-term incentive sub-plans: Share Option Scheme, Restricted Share Unit (RSU) Scheme, and Performance Share Unit (PSU) Scheme[218](index=218&type=chunk)[220](index=220&type=chunk) [Long-Term Incentive Plan Details](index=59&type=section&id=Long-Term%20Incentive%20Plan%20Details) The group's long-term incentive plan comprises three sub-plans, with 654,265 unexercised share options, 1,793,004 unexercised RSUs, and 663,969 unexercised PSUs as of June 30, 2025, and 1,097,339 new RSUs and 180,930 new PSUs granted to directors, executives, and employees during the period Outstanding Equity Incentives as of June 30, 2025 | Plan Type | Outstanding Quantity | | :--- | :--- | | Share Option Scheme | 654,265 | | Restricted Share Unit Scheme | 1,793,004 | | Performance Share Unit Scheme | 663,969 | - For the six months ended June 30, 2025, the company granted **1,097,339 new Restricted Share Units (RSUs)** and **180,930 new Performance Share Units (PSUs)**[248](index=248&type=chunk)[263](index=263&type=chunk) [Interim Financial Information](index=74&type=section&id=Interim%20Financial%20Information) This section presents the interim financial statements, including the review report, condensed consolidated statements of comprehensive income, financial position, changes in equity, and cash flows, along with detailed notes on accounting policies, financial risk management, and related party transactions [Review Report on Interim Financial Information](index=74&type=section&id=Review%20Report%20on%20Interim%20Financial%20Information) PricewaterhouseCoopers has reviewed the group's interim financial information in accordance with International Standard on Review Engagements 2410, concluding that nothing came to their attention causing them to believe the interim financial information is not prepared in all material respects in accordance with International Accounting Standard 34 - PricewaterhouseCoopers, the auditor, has reviewed the interim financial information and issued a conclusion[278](index=278&type=chunk) - Conclusion: Nothing came to the auditor's attention causing them to believe the interim financial information is not prepared in all material respects in accordance with International Accounting Standard 34[280](index=280&type=chunk) [Condensed Consolidated Interim Financial Statements](index=75&type=section&id=Condensed%20Consolidated%20Interim%20Financial%20Statements) This section presents the four core financial statements for the six months ended June 30, 2025: the statement of comprehensive income, statement of financial position, statement of changes in equity, and statement of cash flows, reflecting strong revenue and profit growth, expanded assets, and a healthy cash position Condensed Consolidated Interim Statement of Comprehensive Income (Thousand USD) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | 57,802 | 43,901 | | Gross Profit | 40,100 | 25,102 | | Operating Profit | 30,196 | 15,592 | | **Profit for the Period Attributable to Owners of the Company** | **23,893** | **12,648** | | Basic Earnings Per Share (USD) | 0.07 | 0.04 | Condensed Consolidated Interim Statement of Financial Position (Thousand USD) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | 358,266 | 333,573 | | Total Liabilities | 59,826 | 59,469 | | **Total Equity** | **298,440** | **274,104** | Condensed Consolidated Interim Statement of Cash Flows (Thousand USD) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 19,295 | 19,657 | | Net Cash Used in Investing Activities | (3,187) | (3,216) | | Net Cash Used in Financing Activities | (2,209) | (1,492) | | **Cash and Cash Equivalents at End of Period** | **94,172** | **77,457** | [Notes to Condensed Consolidated Interim Financial Information](index=81&type=section&id=Notes%20to%20Condensed%20Consolidated%20Interim%20Financial%20Information) These notes provide detailed explanations and supplementary information on accounting policies, financial risk management, significant accounting estimates, segment information, and various asset, liability, and profit/loss items, with a focus on revenue segment breakdown, financial risks (market, credit, liquidity), equity incentive accounting, and detailed related party transactions with IMAX Corporation - Financial Risk Management: The Group faces market risks (foreign exchange, interest rate), credit risk, and liquidity risk, with corresponding policies in place; credit risk includes concentration risk due to revenue and receivables from a few major customers[308](index=308&type=chunk)[314](index=314&type=chunk) - Revenue and Segment Information (Note 7): Details revenue, cost, and gross profit for Content Solutions and Technology Products and Services segments; in H1 2025, revenue from two major customers each accounted for over **10% of total revenue**[344](index=344&type=chunk)[350](index=350&type=chunk)[351](index=351&type=chunk) - Share-Based Payments (Note 16c): Discloses activity for options, RSUs, and PSUs under the China Long-Term Incentive Plan and IMAX Long-Term Incentive Plan, including outstanding at beginning, granted, vested, forfeited, and outstanding at end of period[369](index=369&type=chunk)[372](index=372&type=chunk)[376](index=376&type=chunk)[383](index=383&type=chunk) - Related Party Transactions (Note 24): Quantifies various transactions with controlling shareholder IMAX Corporation, including cinema system purchases, film-related transactions, management fees, trademark and technology fees, and revenue sharing[415](index=415&type=chunk)

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) Xinyi Solar Holdings Limited reported interim results for the six months ended June 30, 2025, with revenue down 6.5% to RMB 10,931.8 million, profit attributable to equity holders significantly decreasing by 58.8% to RMB 745.8 million, basic EPS at RMB 8.21 cents, and an interim dividend of 4.2 HK cents per share | Metric | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 10,931.8 | 11,693.9 | -6.5% | | Profit attributable to equity holders of the Company | 745.8 | 1,810.8 | -58.8% | | Earnings per share - Basic | RMB 8.21 cents | RMB 20.33 cents | -59.6% | | Interim dividend per share | 4.2 HK cents | 10.0 HK cents | -58.0% | [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the Group's revenue decreased to RMB 10,931,769 thousand from RMB 11,693,929 thousand in the prior period, with gross profit, operating profit, and profit for the period all significantly declining, resulting in profit attributable to equity holders of RMB 745,755 thousand | Metric | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 10,931,769 | 11,693,929 | | Cost of sales | (8,933,233) | (8,553,752) | | Gross profit | 1,998,536 | 3,140,177 | | Operating profit | 1,295,598 | 2,643,978 | | Profit before income tax | 1,142,902 | 2,454,933 | | Income tax expense | (139,791) | (467,051) | | Profit for the period | 1,003,111 | 1,987,882 | | Profit attributable to equity holders of the Company | 745,755 | 1,810,808 | | Profit attributable to non-controlling interests | 257,356 | 177,074 | | Basic and diluted earnings per share (RMB cents) | 8.21 | 20.33 | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's total comprehensive income for the period decreased to RMB 1,145,190 thousand from RMB 1,860,212 thousand in the prior period, primarily due to foreign currency translation differences shifting from income to loss | Metric | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the period | 1,003,111 | 1,987,882 | | Items that will not be reclassified to profit or loss: Foreign currency translation differences | (248,330) | 137,418 | | Items that may be reclassified subsequently to profit or loss: Foreign currency translation differences | 391,728 | (266,557) | | Share of other comprehensive income of investments accounted for using the equity method | (1,319) | 1,469 | | Total comprehensive income for the period | 1,145,190 | 1,860,212 | | Total comprehensive income attributable to equity holders of the Company | 888,542 | 1,759,939 | | Total comprehensive income attributable to non-controlling interests | 256,648 | 100,273 | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets increased by 3.1% to RMB 58,704,168 thousand compared to December 31, 2024, with significant increases in trade receivables and cash and cash equivalents within current assets, while inventories and bills receivables decreased, and total equity and total liabilities also increased | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **ASSETS** | | | | Total non-current assets | 38,736,619 | 39,369,543 | | Total current assets | 19,967,549 | 17,562,941 | | **TOTAL ASSETS** | **58,704,168** | **56,932,484** | | **EQUITY** | | | | Capital and reserves attributable to equity holders of the Company | 29,949,177 | 29,051,790 | | Non-controlling interests | 5,509,201 | 5,356,082 | | **TOTAL EQUITY** | **35,458,378** | **34,407,872** | | **LIABILITIES** | | | | Total non-current liabilities | 7,942,843 | 7,180,740 | | Total current liabilities | 15,302,947 | 15,343,872 | | **TOTAL LIABILITIES** | **23,245,790** | **22,524,612** | | **TOTAL EQUITY AND LIABILITIES** | **58,704,168** | **56,932,484** | - Trade receivables within current assets increased from RMB 8,541,364 thousand to **RMB 10,110,382 thousand**, and cash and cash equivalents significantly increased from RMB 821,606 thousand to **RMB 2,865,456 thousand**[7](index=7&type=chunk) - Inventories decreased from RMB 2,856,039 thousand to **RMB 1,973,654 thousand**, and bills receivables measured at amortized cost decreased from RMB 3,046,843 thousand to **RMB 2,485,518 thousand**[7](index=7&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, total equity attributable to equity holders of the Company increased from RMB 29,051,790 thousand at the beginning of the year to RMB 29,949,177 thousand, primarily driven by profit for the period and positive foreign currency translation differences, partially offset by dividends paid to non-controlling interests | Item | Share Capital (RMB thousand) | Share Premium (RMB thousand) | Other Reserves (RMB thousand) | Retained Earnings (RMB thousand) | Total Attributable to Equity Holders of the Company (RMB thousand) | Non-controlling Interests (RMB thousand) | Total Equity (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Balance at January 1, 2025 | 738,830 | 5,595,254 | 4,553,181 | 18,164,525 | 29,051,790 | 5,356,082 | 34,407,872 | | Profit for the period | — | — | — | 745,755 | 745,755 | 257,356 | 1,003,111 | | Other comprehensive income | — | — | 142,787 | — | 142,787 | (708) | 142,079 | | Total comprehensive income for the period | — | — | 142,787 | 745,755 | 888,542 | 256,648 | 1,145,190 | | Employee share option scheme | — | — | 5,390 | 946 | 6,336 | 80 | 6,416 | | Dividends payable to non-controlling interests | — | — | — | — | — | (100,339) | (100,339) | | Balance at June 30, 2025 | 738,830 | 5,595,254 | 4,709,519 | 18,905,574 | 29,949,177 | 5,509,201 | 35,458,378 | [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, the Group's net cash generated from operating activities significantly increased to RMB 1,567,444 thousand, net cash used in investing activities substantially decreased due to slower capital expenditure, and net cash generated from financing activities increased, primarily from the issuance of fixed-rate bonds and new borrowings | Metric | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Net cash generated from operating activities | 1,567,444 | 1,144,891 | | Net cash used in investing activities | (1,054,556) | (2,761,774) | | Net cash generated from financing activities | 1,534,063 | 931,461 | | Net increase/(decrease) in cash and cash equivalents | 2,046,951 | (685,422) | | Cash and cash equivalents at end of period | 2,865,456 | 1,897,313 | - The increase in net cash generated from operating activities was primarily attributable to increased cash from operations and reduced income tax paid[11](index=11&type=chunk) - The decrease in net cash used in investing activities was mainly due to a significant reduction in payments for the purchase of property, plant and equipment, from RMB 2,733,440 thousand to **RMB 1,126,014 thousand**[12](index=12&type=chunk) - The increase in net cash generated from financing activities was primarily due to net proceeds of **RMB 799,040 thousand** from the issuance of fixed-rate bonds[13](index=13&type=chunk) [Notes to the Condensed Consolidated Financial Information](index=10&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Information) This section details the Group's financial statement notes, covering company overview, accounting policies, segment information, revenue and expense breakdowns, taxes, dividends, asset and liability changes, related party transactions, and fair value estimates, providing deeper context for understanding the Group's financial position and operating results [1 General Information](index=10&type=section&id=1%20General%20Information) Xinyi Solar Holdings Limited and its subsidiaries primarily engage in the production and sale of solar glass products and the development and operation of solar power plants in China, with this interim financial information presented in RMB thousand and approved for issue by the Board of Directors - The Group's principal activities are the manufacture and sale of solar glass products, and the development and operation of solar power plants[14](index=14&type=chunk) - The financial information is presented in **RMB thousand** and was approved for issue by the Board of Directors on August 1, 2025[14](index=14&type=chunk) [2 Basis of Preparation and Accounting Policies](index=10&type=section&id=2%20Basis%20of%20Preparation%20and%20Accounting%20Policies) This interim financial information is prepared in accordance with HKAS 34 and should be read in conjunction with the annual financial statements, with the Group having changed its presentation currency from HKD to RMB and restated comparative amounts, while new standards adopted in the period had no material impact and those not yet effective are being assessed - This interim financial information is prepared in accordance with **Hong Kong Accounting Standard 34 "Interim Financial Reporting"**[15](index=15&type=chunk) - The presentation currency of the Group's consolidated financial statements has been changed from **HKD to RMB**, and comparative amounts have been restated[16](index=16&type=chunk) - The Group first adopted **HKAS 21 and HKFRS 1 (Amendments)** on January 1, 2025, with no material impact[18](index=18&type=chunk) - The Group is assessing the impact of new standards (amendments) issued but not yet effective, with preliminary assessment indicating no significant impact[19](index=19&type=chunk) [3 Revenue and Segment Information](index=12&type=section&id=3%20Revenue%20and%20Segment%20Information) The Group's total revenue for the first half of 2025 was RMB 10,931,769 thousand, primarily from solar glass sales and solar farm business, with solar glass sales revenue decreasing by 7.3% year-on-year while solar farm business revenue slightly increased by 0.7%, and Mainland China remained the main market but with a reduced share, as North America and Europe markets grew significantly Revenue by Product Category | Product Category | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Solar glass sales | 9,474,148 | 10,221,499 | | Solar farm business | 1,437,551 | 1,427,923 | | Others | 20,070 | 44,507 | | **Total Revenue** | **10,931,769** | **11,693,929** | - The Group has two main operating segments: solar glass sales and solar farm business, with segment performance assessed based on gross profit[21](index=21&type=chunk) Segment Gross Profit | Segment | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Solar glass sales | 1,079,400 | 2,196,821 | | Solar farm business | 913,435 | 936,242 | | Other segments | — | — | | Unallocated | 5,701 | 7,114 | | **Total Gross Profit** | **1,998,536** | **3,140,177** | Revenue by Geographical Region (First Half 2025) | Region | Solar Glass Sales (RMB thousand) | Solar Farm Business (RMB thousand) | Others (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Mainland China | 6,482,850 | 1,436,543 | 13,072 | 7,932,465 | | Other Asia | 2,033,644 | — | — | 2,033,644 | | North America and Europe | 763,489 | 1,008 | 6,998 | 771,495 | | Others | 194,165 | — | — | 194,165 | | **Total** | **9,474,148** | **1,437,551** | **20,070** | **10,931,769** | - As of June 30, 2025, the Group's total assets were **RMB 58,704,168 thousand**, and total liabilities were **RMB 23,245,790 thousand**[26](index=26&type=chunk) [4 Other Income](index=17&type=section&id=4%20Other%20Income) In the first half of 2025, the Group's other income increased to RMB 200,285 thousand, primarily driven by higher government grants and insurance compensation income, partially offset by reduced scrap sales and supplier compensation income | Item | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Government grants | 116,582 | 65,034 | | Scrap sales | 40,180 | 64,706 | | Insurance compensation income | 22,936 | 4,585 | | Tariff adjustment for self-use solar power systems | 8,271 | 1,642 | | Supplier compensation income | 2,334 | 13,010 | | Others | 9,982 | 10,118 | | **Total** | **200,285** | **159,095** | [5 Net Other Losses](index=17&type=section&id=5%20Net%20Other%20Losses) In the first half of 2025, the Group's net other losses increased to RMB 66,737 thousand, mainly due to net foreign exchange losses shifting from gains to losses, and losses from the disposal of bills receivables measured at fair value through other comprehensive income | Item | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Net foreign exchange (loss)/gain | (47,410) | 8,381 | | Loss on disposal of bills receivables measured at fair value through other comprehensive income | (13,663) | (30,386) | | Loss on disposal of property, plant and equipment | (7,729) | (10,414) | | Net fair value gain/(loss) on financial assets at fair value through profit or loss | 2,553 | (4,864) | | Others | (488) | — | | **Total** | **(66,737)** | **(37,283)** | [6 Expenses by Nature](index=18&type=section&id=6%20Expenses%20by%20Nature) In the first half of 2025, the Group's total expenses increased to RMB 9,449,581 thousand from RMB 9,152,704 thousand in the prior period, with depreciation of property, plant and equipment and transportation costs significantly rising, while inventory costs and R&D expenses remained relatively stable or slightly decreased | Item | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 1,083,603 | 882,728 | | Employee benefit expenses | 597,271 | 592,689 | | Cost of inventories | 6,706,803 | 6,707,539 | | Transportation costs | 442,483 | 348,117 | | Research and development expenses | 279,720 | 301,035 | | **Total** | **9,449,581** | **9,152,704** | [7 Finance Income and Costs](index=19&type=section&id=7%20Finance%20Income%20and%20Costs) In the first half of 2025, the Group's finance income was RMB 5,944 thousand, primarily from bank deposit interest, while finance costs were RMB 173,065 thousand (RMB 204,225 thousand before capitalization), a decrease from the prior period mainly due to lower interest on borrowings | Item | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | **FINANCE INCOME** | | | | Interest income from bank deposits | 5,632 | 18,378 | | Interest income from loans to investments accounted for using the equity method | 312 | — | | **Total Finance Income** | **5,944** | **18,378** | | **FINANCE COSTS** | | | | Interest on lease liabilities | 28,856 | 30,973 | | Interest on borrowings | 175,182 | 230,090 | | Interest on fixed-rate bonds | 187 | — | | Less: Amount capitalised on qualifying assets | (31,160) | (40,121) | | **Total Finance Costs** | **173,065** | **220,942** | [8 Income Tax Expense](index=19&type=section&id=8%20Income%20Tax%20Expense) In the first half of 2025, the Group's income tax expense significantly decreased to RMB 139,791 thousand, primarily due to reduced China corporate income tax, as the Group benefits from preferential tax rates for high-tech and encouraged enterprises in China, and some solar farm projects enjoy tax exemptions or reductions | Item | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current income tax | 191,275 | 485,868 | | Deferred income tax | (51,484) | (18,817) | | **Income Tax Expense** | **139,791** | **467,051** | - The corporate income tax rate applicable to the Group's major subsidiaries in China is **25%**, but those qualified as "High and New Technology Enterprises" or "Encouraged Enterprises" enjoy a preferential tax rate of **15%**[35](index=35&type=chunk) - Subsidiaries engaged in operating and managing solar power plants enjoy a **full exemption from corporate income tax for the first three years**, followed by a **50% reduction for the next three years**[35](index=35&type=chunk) - A Malaysian subsidiary, due to its qualifying status, enjoys an investment tax allowance, with a deferred tax asset of **RMB 70,947 thousand** recognized[35](index=35&type=chunk) [9 Earnings Per Share](index=21&type=section&id=9%20Earnings%20Per%20Share) In the first half of 2025, the Group's basic earnings per share were RMB 8.21 cents, a significant decrease from RMB 20.33 cents in the prior period, with diluted earnings per share being the same as basic earnings per share due to the absence of potential dilutive shares | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Profit attributable to equity holders of the Company (RMB thousand) | 745,755 | 1,810,808 | | Weighted average number of ordinary shares in issue (thousand shares) | 9,078,447 | 8,907,292 | | Basic earnings per share (RMB cents) | 8.21 | 20.33 | - Diluted earnings per share are equal to basic earnings per share as there are no potential dilutive shares[37](index=37&type=chunk) [10 Dividends](index=21&type=section&id=10%20Dividends) The Board of Directors has resolved to declare an interim dividend of 4.2 HK cents per share for the first half of 2025, a reduction from 10.0 HK cents in the prior period, which will be deducted from retained earnings for the year ending December 31, 2025 | Item | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Proposed interim dividend of 4.2 HK cents per share (2024: 10.0 HK cents) | 348,580 | 827,585 | | Final dividend for 2023 of 10.0 HK cents per share | — | 1,237,183 | - The 2025 interim dividend amount is calculated based on **9,078,447,365 shares** in issue as of June 30, 2025[38](index=38&type=chunk) [11 Property, Plant and Equipment](index=22&type=section&id=11%20Property,%20Plant%20and%20Equipment) As of June 30, 2025, the Group's net book value of property, plant and equipment was RMB 35,466,514 thousand, with an impairment loss of RMB 313,667 thousand recognized during the period, primarily due to the termination of operations for some production facilities in the solar glass segment caused by supply-demand imbalance | Item | Six Months Ended June 30, 2025 (RMB thousand) | | :--- | :--- | | Net book value at January 1 | 36,167,785 | | Additions | 716,777 | | Depreciation expense | (1,110,987) | | Impairment loss | (313,667) | | Net book value at June 30 | 35,466,514 | - The impairment loss primarily relates to idle facilities in the solar glass segment no longer suitable for production, due to market supply-demand imbalance leading to termination of operations[39](index=39&type=chunk) [12 Right-of-use Assets](index=23&type=section&id=12%20Right-of-use%20Assets) As of June 30, 2025, the Group's net book value of right-of-use assets was RMB 2,187,970 thousand, a slight increase from the beginning of the year, mainly due to additions offsetting the impact of depreciation expense and foreign currency translation differences | Item | Six Months Ended June 30, 2025 (RMB thousand) | | :--- | :--- | | Net book value at January 1 | 2,175,439 | | Additions | 72,567 | | Depreciation expense | (52,557) | | Foreign currency translation differences | (7,479) | | Net book value at June 30 | 2,187,970 | [13 Investments Accounted for Using the Equity Method](index=23&type=section&id=13%20Investments%20Accounted%20for%20Using%20the%20Equity%20Method) As of June 30, 2025, the Group's investments accounted for using the equity method amounted to RMB 257,567 thousand, an increase from the beginning of the year, primarily due to the contribution from its share of net profit | Item | Six Months Ended June 30, 2025 (RMB thousand) | | :--- | :--- | | At January 1 | 244,455 | | Share of net profit | 14,425 | | Foreign currency translation differences | (1,313) | | At June 30 | 257,567 | [14 Trade and Bills Receivables](index=24&type=section&id=14%20Trade%20and%20Bills%20Receivables) As of June 30, 2025, the Group's net trade receivables increased to RMB 10,110,382 thousand, primarily from tariff adjustment payments for solar farm business, while total bills receivables decreased, but bills receivables measured at fair value through other comprehensive income significantly increased | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Net trade receivables | 10,110,382 | 8,541,364 | | Net bills receivables measured at amortized cost | 2,485,518 | 3,046,843 | | Bills receivables measured at fair value through other comprehensive income | 797,296 | 280,756 | - Among trade receivables, tariff adjustment payments for solar farm business accounted for the largest portion, reaching **RMB 5,342,523 thousand**[42](index=42&type=chunk) Ageing Analysis of Trade Receivables (June 30, 2025) | Ageing | Amount (RMB thousand) | | :--- | :--- | | 0 to 90 days | 9,569,581 | | 91 to 180 days | 579,843 | | 181 to 365 days | 16,443 | | One to two years | 17,883 | | Over two years | 2,760 | | **Total** | **10,186,510** | - The credit period for solar glass sales is generally within **90 days**, while tariff adjustment receivables for solar farm business will be collected through the State Grid Corporation in accordance with government policies[45](index=45&type=chunk) [15 Prepayments, Deposits and Other Receivables](index=26&type=section&id=15%20Prepayments,%20Deposits%20and%20Other%20Receivables) As of June 30, 2025, the Group's current portion of prepayments, deposits, and other receivables was RMB 1,245,839 thousand, a decrease from December 31, 2024, primarily due to reductions in prepayments and other tax receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Prepayments | 674,029 | 783,781 | | Deposits and other receivables | 84,914 | 72,554 | | Other tax receivables | 907,965 | 1,056,030 | | Less: Non-current portion | (420,063) | (415,867) | | Less: Loss allowance for deposits and other receivables | (1,006) | (1,875) | | **Current Portion** | **1,245,839** | **1,494,623** | - Other tax receivables primarily refer to recoverable **Value Added Tax (VAT)** amounts[46](index=46&type=chunk) [16 Trade and Bills Payables and Other Payables](index=27&type=section&id=16%20Trade%20and%20Bills%20Payables%20and%20Other%20Payables) As of June 30, 2025, the Group's total trade and bills payables and other payables amounted to RMB 6,164,626 thousand, a decrease from December 31, 2024, primarily due to reductions in trade payables and accrued expenses and other payables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 1,668,477 | 2,442,951 | | Bills payables | 1,189,491 | 1,035,623 | | Accrued expenses and other payables | 3,306,658 | 3,653,731 | | **Total** | **6,164,626** | **7,132,305** | Ageing Analysis of Trade Payables (June 30, 2025) | Ageing | Amount (RMB thousand) | | :--- | :--- | | 0 to 90 days | 1,185,682 | | 91 to 180 days | 468,144 | | 181 to 365 days | 6,155 | | Over one year | 8,496 | | **Total** | **1,668,477** | - Bills payables are due within **six months**[47](index=47&type=chunk) [17 Share Capital and Share Premium](index=27&type=section&id=17%20Share%20Capital%20and%20Share%20Premium) For the six months ended June 30, 2025, there was no change in the Company's share capital and share premium - The Company's share capital and share premium remained unchanged in the first half of 2025[48](index=48&type=chunk) [18 Borrowings](index=28&type=section&id=18%20Borrowings) As of June 30, 2025, the Group's total borrowings increased to RMB 13,205,390 thousand, primarily from unsecured bank borrowings and newly issued unsecured fixed-rate bonds, with most borrowings denominated in RMB and bearing floating interest rates at an effective annual rate of 2.58% | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Unsecured bank borrowings | 12,405,390 | 11,639,790 | | Unsecured fixed-rate bonds | 800,000 | — | | **Total Borrowings** | **13,205,390** | **11,640,054** | Maturity of Bank and Other Borrowings (June 30, 2025) | Maturity | Amount (RMB thousand) | | :--- | :--- | | Repayable on demand and within one year | 6,913,969 | | One to two years | 1,041,223 | | Two to five years | 2,550,452 | | Over five years | 2,699,746 | | **Total** | **13,205,390** | - As of June 30, 2025, most bank and other borrowings bore floating interest rates, with an effective annual interest rate of **2.58%** (December 31, 2024: 3.25%)[50](index=50&type=chunk)[52](index=52&type=chunk) - The Company issued **RMB 800 million** of three-year fixed-rate bonds in June 2025, with an annual interest rate of **2.1%**[52](index=52&type=chunk) - As of June 30, 2025, the total unsecured bank facilities granted to the Group's subsidiaries amounted to **RMB 18,503,770 thousand**, with **RMB 12,429,994 thousand** utilized[53](index=53&type=chunk) [20 Transactions with Non-controlling Interests](index=30&type=section&id=20%20Transactions%20with%20Non-controlling%20Interests) In March 2025, the Group's wholly-owned subsidiary completed the disposal of its entire equity interest in Wuhu Xintu New Energy Co, Ltd to Xinyi Energy for a cash consideration of RMB 14.8 million, resulting in a reduction of non-controlling interests by RMB 3.27 million - The Group disposed of its entire equity interest in Wuhu Xintu New Energy Co, Ltd to Xinyi Energy for a consideration of **RMB 14.8 million**[54](index=54&type=chunk) - Following the disposal, the Company's indirect equity interest in Wuhu Xintu decreased from **100% to 51.62%**, but control was not lost[54](index=54&type=chunk) - The Group recognized a transaction with non-controlling interests, resulting in a reduction of non-controlling interests by **RMB 3.27 million** related to the disposal[54](index=54&type=chunk) [21 Related Party Transactions](index=30&type=section&id=21%20Related%20Party%20Transactions) The Group engages in various related party transactions with its controlling shareholder and associated companies, including procurement of machinery, ocean freight, sale of silica sand, procurement of glass products, rental payments, and solar farm management fees, and as of June 30, 2025, the Group had outstanding receivables and payables with related parties - The controlling shareholder collectively owns **26.79%** of the Company's shares, and Xinyi Glass and its subsidiaries hold **23.68%** of the shares[55](index=55&type=chunk) Related Party Transactions with Subsidiaries of Xinyi Glass (First Half 2025) | Transaction Type | Six Months Ended June 30, 2025 (RMB thousand) | Six Months Ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Procurement of machinery | 798 | 74,949 | | Ocean freight | 15,386 | 4,570 | | Sale of silica sand | 611 | 35,936 | | Procurement of glass products | 1,081 | 3,252 | | Rental expenses paid | 1,574 | 1,690 | | Rental income received | 3,184 | 3,184 | - Paid solar farm management fees of **RMB 4,613 thousand** to subsidiaries of Xinyi Energy (First half of 2024: RMB 5,925 thousand)[57](index=57&type=chunk) Amounts Due from Related Companies (June 30, 2025) | Item | Amount (RMB thousand) | | :--- | :--- | | Amounts due from investments accounted for using the equity method | 57,980 | | Loans to an investment accounted for using the equity method | 7,968 | | Amounts due from related companies | 197 | Amounts Due to Related Companies (June 30, 2025) | Item | Amount (RMB thousand) | | :--- | :--- | | Amounts due to related companies | (1,870,731) | - Key management personnel remuneration was **RMB 9,902 thousand** (2024: RMB 18,492 thousand)[61](index=61&type=chunk) [22 Fair Value Estimation](index=34&type=section&id=22%20Fair%20Value%20Estimation) The Group uses valuation techniques such as discounted cash flow to estimate the fair value of financial instruments, with key unobservable inputs for bills receivables measured at fair value through other comprehensive income and financial assets at fair value through profit or loss including discount rates and expected rates of return Quantitative Information of Fair Value Measurements (June 30, 2025) | Description | Fair Value (RMB thousand) | Valuation Technique | Unobservable Inputs | Input Range | | :--- | :--- | :--- | :--- | :--- | | Bills receivables measured at fair value through other comprehensive income | 797,296 | Discounted cash flow method | Discount rate | 0.90%-1.80% | | Financial assets at fair value through profit or loss – private securities products | 60,605 | Discounted cash flow method | Expected rate of return | 4.06% | - Higher discount rates result in lower fair values; higher expected rates of return result in higher fair values[62](index=62&type=chunk) [Overview](index=36&type=section&id=Overview) In the first half of 2025, the solar industry faced complex challenges including slowing global installation growth, geopolitical tensions, trade barriers, and supply-demand imbalance leading to squeezed profit margins; despite this, the Group's solar glass sales volume increased, but declining average selling prices and impairment provisions resulted in a significant 58.8% decrease in profit attributable to equity holders of the Company - The solar industry operating environment is complex and volatile, with slowing global installation growth, and geopolitical and trade barriers disrupting supply chains[67](index=67&type=chunk) - Supply-demand imbalance has squeezed profit margins across the entire industry chain, including the solar glass sector[67](index=67&type=chunk) - The Group's solar glass segment saw increased sales volume, but a significant drop in average selling prices led to a decline in profit margins, and impairment provisions were recognized for some idle production facilities[67](index=67&type=chunk) Key Financial Data for First Half 2025 | Metric | Amount (RMB million) | Year-on-Year Change | | :--- | :--- | :--- | | Consolidated Revenue | 10,931.8 | -6.5% | | Profit attributable to equity holders of the Company | 745.8 | -58.8% | | Basic earnings per share | RMB 8.21 cents | -59.6% | [Business Review](index=36&type=section&id=Business%20Review) This section reviews the global solar market developments in the first half of 2025, including slowing installation growth, a rush to install projects in China driven by policy changes, supply-demand imbalance in the industry chain, and technological shifts, with the Group responding to market challenges and maintaining competitive advantages through strategic adherence, production diversification, and prudent expansion of its solar farm business [Global Solar Installation Continues to Grow, but at a Slower Pace](index=36&type=section&id=Global%20Solar%20Installation%20Continues%20to%20Grow,%20but%20at%20a%20Slower%20Pace) Global solar installation continued to grow in the first half of 2025, but at a slower pace than in previous years, with China, the US, and the EU remaining key drivers despite facing grid constraints, approval delays, and policy adjustments, while emerging markets like India, Southeast Asia, the Middle East, Africa, and Latin America showed rapid development - Global solar installation continues to grow, but at a slower pace, with mature markets facing grid capacity constraints, approval delays, and policy adjustments[68](index=68&type=chunk) - China faces curtailment issues and changes in on-grid tariff policies, while the US supply chain is affected by trade measures[68](index=68&type=chunk) - India is emerging as a high-growth market, with rapid development in Southeast Asia, the Middle East, Africa, and Latin America[68](index=68&type=chunk)[69](index=69&type=chunk) - Innovative projects such as solar-plus-storage hybrid systems, corporate power purchase agreements, and green hydrogen pilot projects are gaining recognition[69](index=69&type=chunk) [Policy Changes and Uncertainty Drive China's PV Installation Rush](index=37&type=section&id=Policy%20Changes%20and%20Uncertainty%20Drive%20China's%20PV%20Installation%20Rush) In the first half of 2025, China's PV installation increased by 107.1% year-on-year to 212.21 GW, primarily driven by two significant renewable energy policy changes, including the "Administrative Measures for the Development and Construction of Distributed Photovoltaic Power Generation" and the "Notice on Deepening the Market-Oriented Reform of New Energy On-grid Tariffs and Promoting High-Quality Development of New Energy," which led to a rush by developers to complete projects before deadlines - In the first half of 2025, China's new PV installed capacity increased by **107.1%** year-on-year, reaching **212.21 GW**[70](index=70&type=chunk) - The "Administrative Measures for the Development and Construction of Distributed Photovoltaic Power Generation" established a comprehensive regulatory framework, emphasizing local consumption and grid capacity assessment[71](index=71&type=chunk) - The "Notice on Deepening the Market-Oriented Reform of New Energy On-grid Tariffs and Promoting High-Quality Development of New Energy" abolished fixed on-grid tariffs, shifting to a bidding mechanism and introducing flexible settlement mechanisms[71](index=71&type=chunk) - Policy reforms increased revenue uncertainty, leading developers to rush to complete projects before key deadlines, causing a surge in PV installations and a short-term rise in product prices in March and April[72](index=72&type=chunk) [Supply-Demand Imbalance and Technological Shifts in the Solar Industry Chain](index=39&type=section&id=Supply-Demand%20Imbalance%20and%20Technological%20Shifts%20in%20the%20Solar%20Industry%20Chain) In the first half of 2025, the solar industry chain continued to face supply-demand imbalance, price volatility, and industry consolidation pressure, with no significant progress in capacity reduction, while industry associations promoted stricter quality standards to curb vicious competition, and PV module technology shifted towards N-type and double-glass modules, demanding thinner, larger, stronger, more transparent, and more durable solar glass - The solar industry chain faces supply-demand imbalance, price volatility, and industry consolidation pressure, with no significant capacity reduction[73](index=73&type=chunk) - Industry associations are promoting stricter quality standards and capacity discipline to curb vicious price competition[73](index=73&type=chunk) - PV module technology is shifting towards N-type and double-glass module designs, demanding new specifications for solar glass that are thinner, larger, stronger, more transparent, and more durable[73](index=73&type=chunk) [Adhering to Strategy and Production Diversification for Competitive Advantage](index=40&type=section&id=Adhering%20to%20Strategy%20and%20Production%20Diversification%20for%20Competitive%20Advantage) Facing a challenging market, the Group implemented stringent strategies including comprehensive cost optimization, continuous R&D investment, dynamic inventory management, selective customer collaboration, and strict credit management, enhancing market resilience through strategic capacity planning and overseas expansion (new facilities in Indonesia), and effectively mitigating potential risks from US tariff policies through geographical diversification (production facilities in China and overseas) - The Group implements comprehensive cost optimization measures and continuous R&D investment to meet the technical and commercial demands of solar module manufacturers[74](index=74&type=chunk) - It adopts a dynamic inventory management system to maintain appropriate inventory levels and implements selective customer collaboration and stricter credit management policies[74](index=74&type=chunk)[75](index=75&type=chunk) - Through strategic capacity planning and targeted overseas expansion (new solar glass production facilities in Indonesia), the Group enhances its resilience against market fluctuations[75](index=75&type=chunk) - Geographical diversification (production facilities in China and overseas) ensures operational flexibility and mitigates potential trade risks, with limited direct exports of solar glass to the US[75](index=75&type=chunk) [Prudent Expansion of Solar Farm Business, Flexible Response to Market Changes](index=41&type=section&id=Prudent%20Expansion%20of%20Solar%20Farm%20Business,%20Flexible%20Response%20to%20Market%20Changes) In the first half of 2025, the Group temporarily halted solar farm construction in China, focusing instead on reserve development and preparatory work to address uncertainties from policy shifts, resulting in only a slight increase in power generation revenue with no self-developed large-scale projects connected to the grid during the period, while completing the sale of a 30 MW solar farm project to Xinyi Energy and advancing the establishment of an infrastructure securities investment fund to realize value and enhance financial flexibility - The Group temporarily halted solar farm construction in China in the first half of 2025, focusing instead on reserve development and preparatory work[76](index=76&type=chunk) - No self-developed large-scale solar farm projects were connected to the grid during the period, and power generation revenue recorded only a slight increase[76](index=76&type=chunk) - The disposal of a **30 MW** solar farm project to Xinyi Energy was completed, helping to replenish working capital[76](index=76&type=chunk) - As of June 30, 2025, the Group's cumulative approved grid-connected capacity for solar farm projects was **6,245 MW**[77](index=77&type=chunk) - Xinyi Energy is advancing the establishment of an infrastructure securities investment fund, targeting listing on a Chinese stock exchange, to realize value from part of its solar farm investment portfolio[77](index=77&type=chunk) [Financial Review](index=42&type=section&id=Financial%20Review) This section provides a detailed review of the Group's financial performance in the first half of 2025, including revenue, gross profit, various expenses, impairment losses, finance costs, income tax, EBITDA, and net profit; overall, the Group's revenue and profitability were significantly impacted by declining average selling prices of solar glass and impairment provisions, but liquidity and net gearing ratio improved through cost control and financial management [Revenue](index=42&type=section&id=Revenue) In the first half of 2025, the Group's total revenue was RMB 10,931.8 million, a 6.5% year-on-year decrease, with solar glass sales revenue declining by 7.3% to RMB 9,474.1 million, primarily due to a significant drop in average selling prices, partially offset by a 17.5% increase in sales volume, while solar farm business revenue slightly increased by 0.7% to RMB 1,437.6 million Revenue by Product Category | Product Category | First Half 2025 (RMB million) | % of Revenue | First Half 2024 (RMB million) | % of Revenue | Increase/(Decrease) (RMB million) | Increase/(Decrease) % | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Solar glass sales | 9,474.1 | 86.7 | 10,221.5 | 87.4 | (747.4) | (7.3) | | Solar farm business | 1,437.6 | 13.2 | 1,427.9 | 12.2 | 9.6 | 0.7 | | Unallocated | 20.1 | 0.2 | 44.5 | 0.4 | (24.4) | (54.9) | | **Total External Revenue** | **10,931.8** | **100.0** | **11,693.9** | **100.0** | **(762.2)** | **(6.5)** | Solar Glass Revenue by Geographical Region | Region | First Half 2025 (RMB million) | % of Revenue | First Half 2024 (RMB million) | % of Revenue | Increase/(Decrease) (RMB million) | Increase/(Decrease) % | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Mainland China | 6,482.9 | 68.4 | 7,777.7 | 76.1 | (1,294.8) | (16.6) | | Other Asia | 2,033.6 | 21.5 | 2,017.8 | 19.7 | 15.9 | 0.8 | | North America and Europe | 763.5 | 8.1 | 235.9 | 2.3 | 527.6 | 223.7 | | Others | 194.2 | 2.1 | 190.2 | 1.9 | 4.0 | 2.1 | | **Total** | **9,474.1** | **100.0** | **10,221.5** | **100.0** | **(747.4)** | **(7.3)** | - Solar glass sales volume (in tons) increased by **17.5%** year-on-year, primarily achieved through a strategy of reducing inventory[81](index=81&type=chunk) - Overseas sales accounted for **31.6%** of total solar glass sales (First half of 2024: 23.9%), while domestic sales in Mainland China accounted for **68.4%** (First half of 2024: 76.1%)[81](index=81&type=chunk) - The price decline for **2.0 mm** solar glass was greater than for **3.2 mm** solar glass, exerting more downward pressure on segment revenue[82](index=82&type=chunk) - As of June 30, 2025, the Group's uncollected tariff adjustment (subsidy) receivables amounted to **RMB 5,342.5 million**[86](index=86&type=chunk) [Gross Profit](index=45&type=section&id=Gross%20Profit) In the first half of 2025, the Group's gross profit decreased by 36.4% year-on-year to RMB 1,998.5 million, with the overall gross profit margin falling from 26.9% to 18.3%, while the solar glass business gross profit margin decreased by 10.1 percentage points to 11.4% due to declining average selling prices and fixed costs of idle facilities, and the solar farm business gross profit margin reduced to 63.5% affected by power curtailment and increased depreciation expenses | Metric | First Half 2025 (RMB million) | First Half 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Total Gross Profit | 1,998.5 | 3,140.2 | -36.4% | | Overall Gross Profit Margin | 18.3% | 26.9% | -8.6 percentage points | - The solar glass business gross profit margin decreased to **11.4%** (First half of 2024: 21.5%), primarily due to a significant decline in average selling prices and fixed costs of idle production facilities[87](index=87&type=chunk) - The solar farm business gross profit margin decreased to **63.5%** (First half of 2024: 65.6%), mainly affected by power curtailment measures and increased depreciation expenses[88](index=88&type=chunk) [Other Income](index=46&type=section&id=Other%20Income) In the first half of 2025, the Group's other income increased to RMB 200.3 million, a RMB 41.2 million increase from the prior period, primarily due to higher government grants and insurance compensation income - Other income increased by **RMB 41.2 million** to **RMB 200.3 million**, mainly due to increased government grants and insurance compensation income[89](index=89&type=chunk) [Net Other Losses](index=46&type=section&id=Net%20Other%20Losses) In the first half of 2025, net other losses increased by RMB 29.4 million to RMB 66.7 million, primarily due to net foreign exchange losses shifting from gains to losses - Net other losses increased to **RMB 66.7 million**, primarily including net foreign exchange losses of **RMB 47.4 million** (First half of 2024: net gain of RMB 8.4 million)[90](index=90&type=chunk) [Selling and Marketing Expenses](index=46&type=section&id=Selling%20and%20Marketing%20Expenses) In the first half of 2025, selling and marketing expenses increased by 38.5% to RMB 71.5 million, mainly driven by increased solar glass sales volume and higher internal warehousing and logistics costs, with the ratio of selling and marketing expenses to revenue rising from 0.4% to 0.7% - Selling and marketing expenses increased by **38.5%** to **RMB 71.5 million**, primarily due to increased solar glass sales volume and higher internal warehousing and logistics costs[91](index=91&type=chunk) - The ratio of selling and marketing expenses to revenue increased from **0.4% to 0.7%**[91](index=91&type=chunk) [Administrative and Other Operating Expenses](index=47&type=section&id=Administrative%20and%20Other%20Operating%20Expenses) In the first half of 2025, administrative and other operating expenses decreased by 18.7% to RMB 444.8 million, mainly due to reduced employee benefit expenses and R&D expenses, with the ratio of administrative and other operating expenses to revenue falling from 4.7% to 4.1% - Administrative and other operating expenses decreased by **RMB 102.5 million** or **18.7%** to **RMB 444.8 million**[92](index=92&type=chunk) - This was primarily due to a **RMB 57.6 million** decrease in employee benefit expenses and a **RMB 21.3 million** decrease in R&D expenses[92](index=92&type=chunk) - The ratio of administrative and other operating expenses to revenue decreased from **4.7% to 4.1%**[92](index=92&type=chunk) [Impairment Loss on Property, Plant and Equipment](index=47&type=section&id=Impairment%20Loss%20on%20Property,%20Plant%20and%20Equipment) In the first half of 2025, an impairment loss of RMB 313.7 million on property, plant and equipment was recognized, primarily for idle production facilities deemed no longer suitable for solar glass production - An impairment loss of **RMB 313.7 million** was recognized for idle production facilities no longer suitable for solar glass production[93](index=93&type=chunk) [Finance Costs](index=47&type=section&id=Finance%20Costs) In the first half of 2025, the Group's finance costs decreased to RMB 173.1 million, primarily due to a lower overall interest rate resulting from an increased proportion of RMB loans, partially offset by a rise in total bank debt, with RMB 31.2 million of interest expenses capitalized during the period - Finance costs decreased to **RMB 173.1 million** (RMB 204.2 million before capitalization), primarily due to a lower overall interest rate resulting from an increased proportion of RMB loans[94](index=94&type=chunk) - Interest expenses of **RMB 31.2 million** were capitalized as costs of solar glass, solar farm, and polysilicon production facilities under construction[94](index=94&type=chunk) [Share of Net Profit of Investments Accounted for Using the Equity Method](index=47&type=section&id=Share%20of%20Net%20Profit%20of%20Investments%20Accounted%20for%20Using%20the%20Equity%20Method) In the first half of 2025, the Group recorded a share of net profit from investments accounted for using the equity method of RMB 14.4 million, primarily from a 100 MW solar farm project in Lu'an City, Anhui Province, China - The share of net profit from investments accounted for using the equity method was **RMB 14.4 million**, primarily from a **100 MW** solar farm project in Lu'an City, Anhui Province, China[95](index=95&type=chunk) [Income Tax Expense](index=48&type=section&id=Income%20Tax%20Expense) In the first half of 2025, the Group's income tax expense decreased to RMB 139.8 million, with the overall effective income tax rate falling from 19.0% to 12.2%, mainly due to reduced profit contribution from the solar glass business, tax incentives for Malaysian production facilities, and the deferred tax impact of impairment losses on property, plant and equipment - Income tax expense decreased to **RMB 139.8 million**, primarily due to reduced profit contribution from the solar glass business[96](index=96&type=chunk) - The overall effective income tax rate decreased from **19.0% to 12.2%**, mainly benefiting from tax incentives for Malaysian production facilities and the deferred tax impact of impairment losses[96](index=96&type=chunk) [EBITDA and Net Profit](index=48&type=section&id=EBITDA%20and%20Net%20Profit) In the first half of 2025, the Group's EBITDA was RMB 2,445.0 million, a 32.2% year-on-year decrease, with an EBITDA margin of 22.4%, while net profit attributable to equity holders of the Company was RMB 745.8 million, a 58.8% year-on-year decrease, and the net profit margin fell to 6.8%, primarily affected by declining solar glass business profit margins and impairment losses | Metric | First Half 2025 (RMB million) | First Half 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | EBITDA | 2,445.0 | 3,605.9 | -32.2% | | EBITDA Margin | 22.4% | 30.8% | -8.4 percentage points | | Net Profit attributable to equity holders of the Company | 745.8 | 1,810.8 | -58.8% | | Net Profit Margin | 6.8% | 15.5% | -8.7 percentage points | - The decline in net profit margin was primarily due to reduced profit margins in the solar glass business and impairment losses on solar glass production facilities[97](index=97&type=chunk) [Liquidity and Financial Resources](index=49&type=section&id=Liquidity%20and%20Financial%20Resources) In the first half of 2025, the Group's total assets grew by 3.1% to RMB 58,704.2 million, and shareholders' equity increased by 3.1% to RMB 29,949.2 million, with the current ratio improving to 1.30 and net cash from operating activities increasing to RMB 1,567.4 million, while the net gearing ratio improved to 28.7% due to better liquidity and increased shareholders' equity - Total assets increased by **3.1%** to **RMB 58,704.2 million**, and shareholders' equity increased by **3.1%** to **RMB 29,949.2 million**[98](index=98&type=chunk) - The current ratio improved from **1.14** as of December 31, 2024, to **1.30**, mainly due to a more prudent financial management strategy[98](index=98&type=chunk) - Net cash generated from operating activities was **RMB 1,567.4 million** (First half of 2024: RMB 1,144.9 million), primarily due to reduced inventory[99](index=99&type=chunk) - Net cash used in investing activities decreased to **RMB 1,054.6 million**, reflecting a slower pace of capacity expansion[99](index=99&type=chunk) - The net gearing ratio improved from **31.0%** as of December 31, 2024, to **28.7%**, benefiting from improved liquidity and increased shareholders' equity[99](index=99&type=chunk) [Business Outlook](index=50&type=section&id=Business%20Outlook) This section forecasts the long-term growth potential of the solar industry, despite short-term challenges of supply-demand imbalance and price pressure across the entire value chain, with the Group committed to prudent business management, consolidating its leading position through cost control, efficiency improvements, and strategic expansion, while the solar glass market is expected to slow down in the short term and the solar farm business will focus on project reserves, and the Group's successful issuance of Panda bonds has optimized its financing structure, maintaining confidence in future sustainable development [Industry Outlook](index=50&type=section&id=Industry%20Outlook) The solar industry has strong long-term prospects, with falling costs and technological advancements maintaining its competitive edge, and its share of global electricity consumption exceeding 10% for the first time, while new electricity demand trends from electric vehicles, AI, data centers, and green hydrogen production will drive growth, and despite short-term supply-demand imbalance and overcapacity, the industry is expected to gradually improve - Solar power generation's share of global electricity consumption has exceeded **10%** for the first time, indicating immense long-term development potential[100](index=100&type=chunk) - New electricity demand trends from electric vehicles, artificial intelligence, data centers, and green hydrogen production will drive solar demand[100](index=100&type=chunk) - In the short term, the solar industry faces supply-demand imbalance and overcapacity across the entire value chain, with capacity rationalization being key to restoring profitability[101](index=101&type=chunk) - The industry's long-term positive fundamentals remain strong, supported by technological advancements and the global energy transition trend[101](index=101&type=chunk) [Solar Glass Market Outlook](index=50&type=section&id=Solar%20Glass%20Market%20Outlook) The recovery of the solar glass market depends on global PV installation trends and policy developments, with the Chinese market potentially slowing temporarily after a policy-driven installation rush, but overseas markets typically being more active in the second half of the year, and on the supply side, new capacity expansion has significantly contracted, with future growth mainly from existing projects, suggesting that price pressure may persist in the short term - The Chinese market may experience a temporary slowdown after the policy-driven installation rush in the first half of 2025, suppressing short-term demand[101](index=101&type=chunk) - Overseas market installation activities are typically more active in the second half of the year, which may partially offset the contraction in Chinese demand[101](index=101&type=chunk) - Solar glass industry capacity continues to increase, but new capacity expansion projects are almost non-existent, with future supply growth mainly from existing projects[102](index=102&type=chunk) - Given the dynamic market changes, price pressure may persist in the short term[102](index=102&type=chunk) - The Group's total operating solar glass melting capacity is **23,200 tons per day**, and it temporarily suspended operations of two production lines with a total daily melting capacity of **1,800 tons** in July 2025[103](index=103&type=chunk) - Two new solar glass production lines are under construction in Indonesia, expected to commence commercial production in the **first quarter of 2026**[103](index=103&type=chunk) [Solar Farm Investment Outlook](index=51&type=section&id=Solar%20Farm%20Investment%20Outlook) The Group will continue to prioritize quality and rigorously evaluate new solar farm projects, but increased curtailment risks, higher market-based electricity sales requirements, and policy changes have increased uncertainty regarding investment returns, and in the second half of 2025, the focus will remain on project reserve development and preparatory work, with very limited or zero new grid-connected capacity expected - The Group will continue to prioritize quality, rigorously evaluating new projects based on their investment return potential[103](index=103&type=chunk) - Increased curtailment risks, higher market-based electricity sales requirements, and policy changes in China's renewable energy market have increased uncertainty regarding investment returns for new projects[103](index=103&type=chunk) - In the second half of 2025, the focus will remain on project reserve development and preparatory work, with new grid-connected capacity expected to be very limited, or even zero[103](index=103&type=chunk) [Financing Strategy](index=52&type=section&id=Financing%20Strategy) The Group successfully completed its inaugural RMB 800 million Panda bond issuance in June 2025, opening up a low-cost financing channel, optimizing its financing structure, and providing a natural currency hedge for RMB-denominated assets - The Group successfully completed its inaugural **RMB 800 million** Panda bond issuance in June 2025, with a three-year term[104](index=104&type=chunk) - This initiative opened up a new low-cost financing channel, optimized the financing structure, and provided a natural currency hedge for RMB-denominated assets[104](index=104&type=chunk) [Long-Term Strategy](index=52&type=section&id=Long-Term%20Strategy) The Group will strictly execute its three-pillar strategy of operational excellence, financial prudence, and technological leadership to withstand current market volatility, consolidate its competitive advantages, and create long-term economic value for shareholders - The Group will strictly execute its three-pillar strategy: operational excellence, financial prudence, and technological leadership[104](index=104&type=chunk) - This aims to withstand current market volatility, consolidate competitive advantages, and create long-term economic value for shareholders[104](index=104&type=chunk) [Other Information](index=52&type=section&id=Other%20Information) This section provides other important information for the Group's first half of 2025, including capital expenditure, pledged assets, contingent liabilities, material acquisitions and disposals, treasury policy, employees and remuneration, share option schemes, post-reporting period events, interim dividends, securities transactions, and corporate governance, comprehensively supplementing the financial and business review [Capital Expenditure and Commitments](index=52&type=section&id=Capital%20Expenditure%20and%20Commitments) In the first half of 2025, the Group incurred capital expenditure of RMB 1,127.8 million, primarily for expanding and upgrading solar glass production capacity, developing solar farm projects, and constructing polysilicon production facilities, with contracted but unspent capital commitments amounting to RMB 918.0 million as of June 30, 2025 - Capital expenditure in the first half of 2025 was **RMB 1,127.8 million**, primarily for solar glass capacity expansion, solar farm development, and polysilicon production facility construction[105](index=105&type=chunk) - As of June 30, 2025, contracted but unspent capital commitments amounted to **RMB 918.0 million**, mainly related to new solar glass production facilities in Indonesia[105](index=105&type=chunk) [Pledged Assets](index=52&type=section&id=Pledged%20Assets) As of June 30, 2025, RMB 80.4 million of bills receivables were pledged as collateral for obtaining letter of credit financing in China - **RMB 80.4 million** of bills receivables were pledged as collateral for obtaining letter of credit financing in China[106](index=106&type=chunk) [Contingent Liabilities](index=52&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - The Group had no significant contingent liabilities[107](index=107&type=chunk) [Material Acquisitions and Disposals of Subsidiaries](index=53&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries) Except for the disposal of Wuhu Xintu New Energy Co, Ltd as disclosed in Note 20, no other material acquisitions and disposals of subsidiaries and associates occurred in the first half of 2025 - Except for the disposal of Wuhu Xintu New Energy Co, Ltd, no other material acquisitions and disposals of subsidiaries and associates occurred in the first half of 2025[108](index=108&type=chunk) [Treasury Policy and Foreign Exchange Fluctuation Risk](index=53&type=section&id=Treasury%20Policy%20and%20Foreign%20Exchange%20Fluctuation%20Risk) The Group's consolidated financial statements are presented in RMB, and most business transactions are settled in RMB, thus limiting significant foreign exchange risk, with the Group primarily managing currency risk through natural hedging and having converted foreign currency bank loans into RMB-denominated debt to effectively eliminate currency mismatch issues - The Group's consolidated financial statements are presented in **RMB**, and most business transactions are settled in RMB, limiting significant foreign exchange risk[109](index=109&type=chunk) - The Group primarily manages currency risk through **natural hedging**, avoiding speculative foreign exchange activities[109](index=109&type=chunk) - Foreign currency bank loans have been converted into RMB-denominated debt through cross-currency swaps, further reducing exchange rate risk[109](index=109&type=chunk) [Employees and Remuneration Policy](index=54&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had approximately 8,087 full-time employees, with total staff costs amounting to RMB 597.3 million, and the Group maintains good relationships with employees, provides training, and offers competitive remuneration benefits and discretionary bonuses - As of June 30, 2025, the Group had approximately **8,087 full-time employees**, of whom **6,850** were in Mainland China[110](index=110&type=chunk) - Total staff costs (including directors' emoluments) for the first half of 2025 amounted to **RMB 597.3 million**[110](index=110&type=chunk) - The Group provides competitive remuneration benefits and discretionary bonuses based on employee performance and Group results[110](index=110&type=chunk) [Share Option Scheme](index=54&type=section&id=Share%20Option%20Scheme) Under the share option scheme adopted in May 2024, a total of 17,050,000 share options were granted to selected employees and an executive director in March 2025, valid until March 31, 2029, and subject to vesting conditions - A total of **17,050,000 share options** were granted to selected employees and an executive director in March 2025[111](index=111&type=chunk) - The share options are valid from March 28, 2025, to March 31, 2029, and are subject to vesting conditions[111](index=111&type=chunk) [Events After the Reporting Period](index=54&type=section&id=Events%20After%20the%20Reporting%20Period) Given anticipated changes in downstream demand and recent supply-demand dynamics, the Group temporarily suspended operations of two solar glass production lines with a total daily melting capacity of 1,800 tons in July 2025, with future plans still under review - The Group temporarily suspended operations of two solar glass production lines with a total daily melting capacity of **1,800 tons** in July 2025[112](index=112&type=chunk) - The future plans for these production lines are still under review[112](index=112&type=chunk) [Interim Dividend and Closure of Register of Members](index=55&type=section&id=Interim%20Dividend%20and%20Closure%20of%20Register%20of%20Members) The Board of Directors has resolved to declare an interim dividend of 4.2 HK cents per share for the first half of 2025, with shareholders having the option to receive it in cash or by scrip dividend, and the register of members will be closed from August 18 to August 20, 2025, to determine dividend entitlements - The Board of Directors has resolved to declare an interim dividend of **4.2 HK cents per share** for the first half of 2025 (First half of 2024: 10.0 HK cents)[113](index=113&type=chunk) - Shareholders will be offered an option to receive the interim dividend in cash or in whole or in part by new fully paid shares of the Company in lieu of cash[113](index=113&type=chunk) - The register of members will be closed from **August 18 to August 20, 2025**, with the record date being August 20, 2025[113](index=113&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=56&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Listed%20Securities) In the first half of 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - In the first half of 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[115](index=115&type=chunk) [Corporate Governance](index=56&type=section&id=Corporate%20Governance) The Company has complied with the applicable code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the HKEX Listing Rules during the first half of 2025, except for the requirement that the roles of Chairman and Chief Executive Officer be held by different individuals, though the Board believes this arrangement facilitates the smooth execution of business strategies - The Company complied with the Corporate Governance Code in the first half of 2025, except for the requirement that the roles of Chairman and Chief Executive Officer be separate[116](index=116&type=chunk) - The Board believes that Mr Li Sai Tan, the Vice Chairman and Chief Executive Officer, holding both positions facilitates the smooth and efficient execution of business strategies[116](index=116&type=chunk) [Model Code for Securities Transactions](index=57&type=section&id=Model%20Code%20for%20Securities%20Transactions) The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules, and all Directors confirmed compliance with the Code during the first half of 2025 - The Company has adopted the **Model Code for Securities Transactions by Directors of Listed Issuers**[1

Company Overview [Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) PCCW Limited announced its unaudited interim results for the six months ended June 30, 2025, showing growth in revenue and EBITDA despite macroeconomic challenges, significant increases in Viu paying subscribers and ViuTV digital members, and a declared interim dividend - Viu paying subscribers increased to **13.8 million**, driving subscription and advertising revenue up by **27%**[3](index=3&type=chunk) - ViuTV digital members reached **3.3 million**, with a strong lineup of concerts and programs planned for the second half of the year[3](index=3&type=chunk) H1 2025 Key Financial Highlights | Metric | Amount (HK$) | Y-o-Y Change | | :--- | :--- | :--- | | Revenue | HK$18.922 billion | +7% | | HKT Revenue | HK$17.322 billion | +4% | | OTT Business Revenue | HK$1.194 billion | +10% | | Free TV & Related Business Revenue | HK$343 million | - | | EBITDA | HK$6.010 billion | +6% | | HKT EBITDA | HK$6.380 billion | +3% | | OTT Business EBITDA | HK$346 million | +51% | | Free TV & Related Business EBITDA | HK$47 million | - | | Consolidated Profit for the Period | HK$758 million | +116% | | Loss Attributable to Equity Holders of the Company | narrowed to HK$445 million | - | | Interim Dividend Per Ordinary Share | HK9.77 cents | - | [Letter to Shareholders](index=2&type=section&id=Letter%20to%20Shareholders) Managing Director Susanna Hui's letter to shareholders emphasized the company's focus on driving earnings growth by expanding regional video streaming, local entertainment, and leveraging HKT's market leadership, while Viu deepened regional penetration, ViuTV created new artist opportunities, and HKT benefited from its solid foundation and active AI adoption, all supported by a prudent dividend policy for sustainable growth and stable shareholder returns - Overall Strategy: Focus on driving earnings growth by expanding regional video streaming and local entertainment businesses, benefiting from HKT's market leadership and solid foundation[4](index=4&type=chunk) - Viu Performance: Paying subscribers reached **13.8 million**, with particularly strong growth in Thailand, the Philippines, and Malaysia; H1 revenue grew **10%**, and EBITDA margin improved from **21%** to **29%**[5](index=5&type=chunk) - HKT Performance: Revenue and EBITDA recorded **4%** and **3%** growth respectively, with adjusted funds flow increasing **3%**; committed to being a leader in AI technology and applications, and applying AI to reshape operations[8](index=8&type=chunk) - Dividend Policy: The Board declared an interim dividend of **HK9.77 cents** per ordinary share; the Company will adopt a prudent dividend policy, prioritizing strengthening its financial position to support sustainable growth while providing stable returns to shareholders[9](index=9&type=chunk) Business Segment Performance [HKT Business](index=6&type=section&id=HKT%20Business) HKT demonstrated resilience in a challenging macroeconomic environment, with revenue growing **4%** to **HK$17.322 billion** and EBITDA increasing **3%** to **HK$6.380 billion** for the six months ended June 30, 2025, actively integrating AI technology into operations and achieving solid growth across local, international, and mobile telecommunications services HKT Key Financial Data | Metric | June 30, 2024 (HK$ million) | June 30, 2025 (HK$ million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | HKT Revenue | 16,669 | 17,322 | +4% | | HKT EBITDA | 6,168 | 6,380 | +3% | | HKT Adjusted Funds Flow | 2,495 | 2,562 | +3% | - Local telecommunications services revenue grew **5%** to **HK$8.714 billion**, driven by strong broadband service demand and enterprise business growth; FTTH connections reached **1.055 million**, and local data revenue grew **11%**[14](index=14&type=chunk) - Mobile communications business revenue grew **5%** to **HK$5.2 billion**, with service revenue increasing **5%** to **HK$4.189 billion**, primarily driven by growth in roaming services, an expanded postpaid customer base, and rising demand for 5G/IoT enterprise solutions; 5G customer numbers increased to **1.894 million**[16](index=16&type=chunk) - Operating costs saved **4%** to **HK$1.921 billion**, reflecting the effectiveness of reshaping workflows through AI applications, streamlining business structures, and optimizing human resources[17](index=17&type=chunk) [OTT Business](index=8&type=section&id=OTT%20Business) OTT business revenue significantly increased **10%** to **HK$1.194 billion**, primarily driven by Viu's contributions, with Viu's subscription and advertising revenue growing **27%** and paying subscribers (excluding Myanmar) rising **19%** year-on-year to **13.8 million**, while EBITDA surged **51%** to **HK$346 million**, improving the margin to **29%** and progressing towards positive cash flow OTT Business Key Financial Data | Metric | June 30, 2024 (HK$ million) | June 30, 2025 (HK$ million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | OTT Business Revenue | 1,089 | 1,194 | +10% | | OTT Business EBITDA | 229 | 346 | +51% | | OTT Business EBITDA Margin | 21% | 29% | +8 percentage points | - Viu subscription and advertising revenue significantly increased **27%**, primarily due to producing engaging content, expanding the subscriber base, and launching premium subscription plans[20](index=20&type=chunk) - Viu paying subscribers (excluding Myanmar) reached **13.8 million**, a **19%** year-on-year growth, with particularly significant growth in Thailand, the Philippines, and Malaysia[22](index=22&type=chunk) - Content Strategy and Partnerships: Added nearly **150 new productions**, including Chinese and Korean dramas, with popular Viu Original productions; deepened cooperation with local telecom operators and expanded to joint content creation with Telkomsel in Indonesia[21](index=21&type=chunk)[22](index=22&type=chunk) [Free TV and Related Businesses](index=9&type=section&id=Free%20TV%20and%20Related%20Businesses) Free TV and related businesses revenue was **HK$343 million**, a **29%** decrease from the prior year due to different concert and event scheduling, yet advertising revenue remained stable, digital membership grew over **4%** to **3.3 million**, and while EBITDA fell to **HK$47 million**, it is expected to rebound in the second half with numerous concerts and events Free TV and Related Businesses Key Financial Data | Metric | June 30, 2024 (HK$ million) | June 30, 2025 (HK$ million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 480 | 343 | (29)% | | EBITDA | 91 | 47 | (48)% | | EBITDA Margin | 19% | 14% | (5 percentage points) | - Artist Development and International Collaboration: Continued to provide development opportunities for nearly **70 artists** and expanded their exposure in markets outside Hong Kong, collaborating with international artists such as Coldplay, Sunmi, and Karencici[24](index=24&type=chunk) - ViuTV Digital Members and Viewing Time: Digital members grew over **4%** to **3.3 million**, and viewing time also increased over **4%**[24](index=24&type=chunk) - H2 Outlook: Anticipates an increase in live performances in the second half, with **10 strong concert series** planned, expected to drive revenue growth and a rebound in financial performance[24](index=24&type=chunk) [Other Businesses and Eliminations](index=10&type=section&id=Other%20Businesses%20and%20Eliminations) Other business revenue grew **99%** to **HK$743 million**, driven by IT enterprise solutions project milestones, with eliminations of **HK$680 million** reflecting internal and external project collaborations within the Group - Other business revenue grew **99%** from **HK$373 million** last year to **HK$743 million**, consistent with IT enterprise solutions project milestones[25](index=25&type=chunk) - Eliminations were **HK$680 million**, a **26%** decrease from **HK$913 million** in the prior period, reflecting internal and external project collaborations among the Group's various businesses[11](index=11&type=chunk)[26](index=26&type=chunk) Consolidated Financial Performance and Analysis [Consolidated Revenue and EBITDA](index=4&type=section&id=Consolidated%20Revenue%20and%20EBITDA) For the six months ended June 30, 2025, PCCW's consolidated revenue increased **7%** to **HK$18.922 billion**, consolidated EBITDA grew **6%** to **HK$6.010 billion**, consolidated profit for the period surged **116%** to **HK$758 million**, and loss attributable to equity holders of the Company narrowed to **HK$445 million** Consolidated Revenue and EBITDA | Metric | June 30, 2024 (HK$ million) | June 30, 2025 (HK$ million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Consolidated Revenue | 17,698 | 18,922 | +7% | | Consolidated EBITDA | 5,672 | 6,010 | +6% | | Consolidated EBITDA Margin | 32% | 32% | - | - Loss attributable to equity holders of the Company narrowed to **HK$445 million** (prior period 2024: **HK$462 million**)[11](index=11&type=chunk) - Consolidated profit for the period increased **116%** to **HK$758 million**[3](index=3&type=chunk) [Costs and Other Financial Items](index=

Consolidated Statement of Profit or Loss [Overview of Consolidated Statement of Profit or Loss](index=2&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8-%E6%A6%82%E8%A6%BD) For the six months ended June 30, 2025, the company experienced significant declines in both revenue and profit, with revenue down **6.6%** and profit attributable to equity holders decreasing by **43.8%** Revenue and Profit Overview | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Revenue | 1,400,319 | 1,498,857 | -6.6% | | Gross Profit | 669,029 | 852,093 | -21.49% | | Profit Before Income Tax | 346,511 | 521,361 | -33.54% | | Profit for the Period | 292,039 | 547,458 | -46.66% | | Profit Attributable to Equity Holders of the Company | 281,940 | 501,370 | -43.8% | Earnings Per Share | Metric | H1 2025 (RMB cents) | H1 2024 (RMB cents) | Change Rate | | :--- | :--- | :--- | :--- | | Basic EPS | 3.58 | 6.24 | -42.63% | | Diluted EPS | 3.58 | 6.23 | -42.54% | Key Cost Changes | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Cost of Services and Cost of Sales | (731,290) | (646,764) | 13.07% | | Finance Costs | (315,461) | (340,563) | -7.37% | - **Other Gains and Losses, Net**: H1 2025 recorded net gains of **24,070 RMB thousands**, compared to a net loss of **724 RMB thousands** in H1 2024, primarily due to **reversal of impairment losses on assets held for sale** and **gains from disposal of a joint venture**[4](index=4&type=chunk) Consolidated Statement of Comprehensive Income [Overview of Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8-%E6%A6%82%E8%A6%BD) Total comprehensive income for the six months ended June 30, 2025, significantly decreased by **43.9%** to **RMB 303,760 thousands**, primarily due to lower profit for the period Total Comprehensive Income | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Profit for the Period | 292,039 | 547,458 | -46.66% | | Exchange Differences on Translation | 11,721 | (6,475) | 281.19% | | Total Comprehensive Income for the Period | 303,760 | 540,983 | -43.86% | - Profit Attributable to Equity Holders of the Company: H1 2025 was **293,675 RMB thousands**, a **40.69% decreased** compared to **495,141 RMB thousands** in H1 2024[5](index=5&type=chunk) Consolidated Statement of Financial Position [Overview of Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8-%E6%A6%82%E8%A6%BD) As of June 30, 2025, total assets grew by **3.37%** to **RMB 33,212,691 thousands**, driven by property, plant and equipment, while net current assets improved significantly and total liabilities increased slightly Total Assets | Metric | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Total Assets | 33,212,691 | 32,129,839 | 3.37% | | Non-current Assets | 27,311,490 | 23,985,781 | 13.86% | | Current Assets | 5,901,201 | 8,144,058 | -27.54% | Total Liabilities | Metric | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Total Liabilities | 24,312,642 | 23,223,533 | 4.69% | | Non-current Liabilities | 18,871,245 | 15,283,280 | 23.47% | | Current Liabilities | 5,441,397 | 7,940,253 | -31.48% | Key Asset Changes | Metric | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Property, Plant and Equipment | 20,422,587 | 17,247,835 | 18.49% | | Assets Classified as Held for Sale | 84,877 | 2,777,915 | -96.95% | | Cash and Cash Equivalents | 1,983,096 | 1,693,834 | 17.08% | Key Liability Changes | Metric | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Bank Borrowings (Non-current) | 6,206,205 | 4,809,590 | 29.04% | | Other Borrowings (Non-current) | 11,515,808 | 9,296,012 | 23.88% | | Liabilities Directly Associated with Assets Classified as Held for Sale | 40,530 | 2,541,816 | -98.41% | - Net Current Assets: As of June 30, 2025, net current assets were **459,804 RMB thousands**, an **increased** of **125.61%** compared to **203,805 RMB thousands** as of December 31, 2024[7](index=7&type=chunk) - Gearing Ratio: As of June 30, 2025, the gearing ratio was **73.20%**, a **slightly increased** compared to **72.28%** as of December 31, 2024[45](index=45&type=chunk) Notes to the Consolidated Financial Statements [1 Basis of Preparation and Changes in Accounting Policies and Disclosures](index=6&type=section&id=1%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96%E5%8F%8A%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E5%8F%8A%E6%8A%AB%E9%9C%B2%E4%B9%8B%E8%AE%8A%E6%9B%B4) This section details the basis of preparation for the interim financial report, confirming compliance with HKEX Listing Rules and HKAS 34, with consistent accounting policies and no material impact from new standards - Basis of Preparation: The report is **prepared** in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard **34** - Interim Financial Reporting issued by the Hong Kong Institute of Certified Public Accountants[8](index=8&type=chunk) - Accounting Policies Consistency: The accounting policies adopted in the preparation of this interim financial report are **consistent** with those applied in the **2024** annual financial statements, except for expected changes in accounting policies to be reflected in the **2025** annual financial statements[8](index=8&type=chunk) - Review Status: This interim financial report is unaudited but has been **reviewed** by KPMG in accordance with Hong Kong Standard on Review Engagements **2410**[9](index=9&type=chunk) - New Standards Impact: The Group has **applied** Hong Kong Accounting Standard **21** - The Effects of Changes in Foreign Exchange Rates - Lack of Exchangeability (Amendments), but this amendment has **no material impact** on this interim report as **no** relevant transactions were conducted[9](index=9&type=chunk) [2 Segment Information](index=6&type=section&id=2%20%E5%88%86%E9%A1%9E%E8%B3%87%E6%96%99) The company segments its business into core power generation (wind and solar plant operations/investments) and 'others' (design, tech, consulting, finance lease), with power generation contributing **95.36%** of external revenue - Business Segments: The primary operating decision-maker analyzes the business from a product and service perspective, classifying operations into **power generation business** (wind and solar power plant operations and investments) and **'others'** (design, technical and consulting services, power engineering design and construction, and existing finance lease services)[11](index=11&type=chunk) - Performance Assessment Basis: The primary operating decision-maker assesses the performance of operating segments based on adjusted earnings before interest and tax (excluding non-recurring income and expenses)[12](index=12&type=chunk) [Business Segments](index=6&type=section&id=%E6%A5%AD%E5%8B%99%E5%88%86%E9%A1%9E) The company segments operations into power generation (wind/solar plant operations and investments) and 'others' (design, tech, consulting, finance lease), with performance assessed by adjusted EBIT - Power Generation Business: **Core business**, including the operation and investment of wind and solar power generation plants[11](index=11&type=chunk) - Others: **Ancillary business**, including design, technical, consulting services, and finance lease[11](index=11&type=chunk) - Internal Reports: Operating segments are based on internal reports **reviewed** by the primary operating decision-maker[11](index=11&type=chunk) [Segment Revenue and Results, and Segment Assets and Liabilities](index=7&type=section&id=%E5%88%86%E9%A1%9E%E6%94%B6%E5%85%A5%E5%8F%8A%E6%A5%AD%E7%B8%BE%EF%BC%8C%E5%8F%8A%E5%88%86%E9%A1%9E%E8%B3%87%E7%94%A2%E8%88%87%E8%B2%A0%E5%82%B5) For H1 2025, power generation external revenue was **RMB 1,335,393 thousands** (**95.36%** of total), with segment results of **RMB 625,860 thousands**, both declining year-on-year H1 2025 Segment Revenue and Results | Metric | Power Generation Business (RMB thousands) | Others (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | | Revenue from External Customers | 1,335,393 | 64,926 | 1,400,319 | | Segment Results | 625,860 | (5,516) | 620,344 | Segment Assets and Liabilities as of June 30, 2025 | Metric | Power Generation Business (RMB thousands) | Others (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | | Segment Assets | 31,287,237 | 1,533,936 | 32,821,173 | | Segment Liabilities | (23,412,468) | (449,314) | (23,861,782) | - Power Generation Business Revenue Composition (H1 2025): Revenue from wind power plants and other income was **1,115,501 RMB thousands**, and solar power plants was **219,892 RMB thousands**[14](index=14&type=chunk) H1 2024 Segment Revenue and Results | Metric | Power Generation Business (RMB thousands) | Others (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | | Revenue from External Customers | 1,364,318 | 134,539 | 1,498,857 | | Segment Results | 812,081 | (5,513) | 806,568 | - Power Generation Business Revenue Composition (H1 2024): Revenue from wind power plants and other income was **1,176,495 RMB thousands**, and solar power plants was **187,823 RMB thousands**[15](index=15&type=chunk) [3 Revenue](index=9&type=section&id=3%20%E6%94%B6%E5%85%A5) For H1 2025, total revenue decreased by **6.6%** to **RMB 1,400,319 thousands**, with lower benchmark/market-based tariff and green certificate income, offset by increased renewable energy subsidies and design services Revenue Composition and Changes | Revenue Category | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Benchmark and Market-based Tariff Revenue | 1,170,425 | 1,188,558 | -1.52% | | Renewable Energy Subsidy Income | 153,436 | 146,391 | 4.81% | | Green Certificate Income | 7,211 | 19,716 | -63.42% | | Design, Procurement and Construction Services Revenue | 26,217 | 40,109 | -34.59% | | Design Services Revenue | 20,658 | 14,099 | 46.52% | | Technical and Consulting Services Revenue | 6,763 | 12,409 | -45.50% | | Other Income (Non-finance Lease) | 6,470 | 59,751 | -89.17% | | Finance Lease Income | 9,139 | 17,824 | -48.73% | | **Total Revenue** | **1,400,319** | **1,498,857** | **-6.57%** | - Revenue Recognition Standards: Most revenue is **recognized** based on customer contracts within the scope of Hong Kong Financial Reporting Standard **15**[16](index=16&type=chunk) [4 Other Income](index=9&type=section&id=4%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) For H1 2025, total other income decreased by **29.54%** to **RMB 53,960 thousands**, mainly due to lower interest and substation access income, despite a significant increase in tax refund government grants Other Income Composition and Changes | Revenue Category | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Interest Income | 8,043 | 25,585 | -68.56% | | Government Grants — Tax Refunds | 30,141 | 17,366 | 73.56% | | Step-up Substation Access and Usage Income | - | 18,868 | -100% | | Guarantee Income | 1,980 | 4,014 | -50.68% | | Rental Income | 5,003 | 2,766 | 80.87% | | **Total Other Income** | **53,960** | **76,577** | **-29.54%** | - **Tax refunds increased**: Government grants from tax refunds **increased** from **17,366 RMB thousands** in H1 2024 to **30,141 RMB thousands**, a **73.56% increased**[17](index=17&type=chunk) [5 Other Gains and Losses, Net](index=10&type=section&id=5%20%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E5%8F%8A%E虧%E6%90%8D%EF%BC%8C%E6%B7%A8%E9%A1%8D) For H1 2025, the company recorded net other gains and losses of **RMB 24,070 thousands**, a significant improvement from a net loss in the prior year, driven by reversal of impairment and disposal gains - **Primary source of gains**: **Reversal of impairment losses on assets held for sale** of **14,637 RMB thousands**; **net gains from disposal of a joint venture** of **11,461 RMB thousands**[18](index=18&type=chunk) - **Fair value change gains decreased**: Fair value change gains on financial assets at fair value through profit or loss **decreased** from **5,794 RMB thousands** in H1 2024 to **4,155 RMB thousands**[18](index=18&type=chunk) - **Exchange losses reduced**: Net exchange losses **reduced** from **4,061 RMB thousands** in H1 2024 to **1,307 RMB thousands**[18](index=18&type=chunk) [6 Finance Costs](index=10&type=section&id=6%20%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) For H1 2025, total finance costs decreased by **7.37%** to **RMB 315,461 thousands**, primarily due to increased interest capitalization despite a slight reduction in total interest expenses Interest Expense Composition and Changes | Interest Expense Category | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Bank Borrowings | 99,192 | 97,974 | 1.24% | | Other Borrowings | 238,985 | 260,603 | -8.29% | | Lease Liabilities | 12,274 | 6,660 | 84.29% | | **Total Interest Expense** | **350,451** | **365,237** | **-4.05%** | - **Interest capitalization increased**: Interest capitalization amount **increased** from **24,674 RMB thousands** in H1 2024 to **34,990 RMB thousands**, an **increased** of **41.81%**[18](index=18&type=chunk) [7 Income Tax Expense/(Credit)](index=10&type=section&id=7%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF%2F%28%E6%8A%B5%E5%85%8D%29) For H1 2025, the company recorded an income tax expense of **RMB 54,472 thousands**, a shift from a credit in the prior year, mainly due to the absence of a significant PRC withholding tax reversal Income Tax Expense/(Credit) Changes | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Current Tax — PRC Enterprise Income Tax | 65,422 | 49,294 | Increase | | Current Tax — PRC Withholding Tax | 16,842 | 53,982 | Decrease | | Under/(Over) Provision in Prior Periods — PRC Withholding Tax | - | (90,000) | Decrease (2024 was Credit) | | Deferred Tax | (37,604) | (42,991) | Decrease (Credit reduced) | | **Total** | **54,472** | **(26,097)** | From Credit to Expense | - **2024 withholding tax reversal**: In June **2024**, the company **reversed** **90,000 RMB thousands** of PRC dividend withholding tax for **2022** and **2023** due to obtaining Hong Kong resident status, which was recovered in **2024**[19](index=19&type=chunk) [8 Earnings Per Share](index=11&type=section&id=8%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) For H1 2025, basic EPS decreased by **42.63%** to **RMB 3.58 cents**, and diluted EPS also fell to **RMB 3.58 cents**, primarily due to a significant reduction in profit attributable to ordinary equity holders Basic Earnings Per Share | Metric | H1 2025 | H1 2024 | Change Rate | | :--- | :--- | :--- | :--- | | Profit Attributable to Ordinary Equity Holders (RMB thousands

[Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The company achieved significant growth in revenue, profit, and dividends for the six months ended June 30, 2025 Financial Highlights for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB million) | 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,210.2 | 1,124.0 | 7.7% | | Profit attributable to equity holders of the Company | 449.8 | 364.4 | 23.4% | | Earnings per share - basic (RMB cents) | 5.37 | 4.41 | 21.8% | | Interim dividend (RMB million) | 222.1 | 177.8 | 24.9% | | Interim dividend per share (HK cents) | 2.9 | 2.3 | 26.1% | [Condensed Consolidated Financial Statements](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the condensed consolidated financial statements, including income, comprehensive income, financial position, equity changes, and cash flows [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) The Group's revenue for the six months ended June 30, 2025, increased by 7.7% to RMB1,210,234 thousand, with profit attributable to equity holders growing by 23.4% Key Data from Condensed Consolidated Statement of Profit or Loss | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 1,210,234 | 1,124,053 | | Cost of sales | (462,813) | (401,737) | | Gross profit | 747,421 | 722,316 | | Operating profit | 731,301 | 706,917 | | Profit before income tax | 585,162 | 527,320 | | Profit for the period | 449,842 | 364,991 | | Profit attributable to equity holders of the Company | 449,842 | 364,448 | | Basic and diluted earnings per share (RMB cents) | 5.37 | 4.41 | [Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The Group's total comprehensive income for the six months ended June 30, 2025, significantly increased to RMB447,622 thousand, primarily due to a substantial reduction in foreign currency translation losses Key Data from Condensed Consolidated Statement of Comprehensive Income | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the period | 449,842 | 364,991 | | Exchange differences on translation of foreign operations | (2,181) | (127,584) | | Share of other comprehensive (loss)/income of associates accounted for using the equity method | (39) | 9 | | Total comprehensive income for the period | 447,622 | 237,416 | | Total comprehensive income attributable to equity holders of the Company | 447,622 | 236,873 | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the Group's total assets were RMB22,103,578 thousand, with total equity at RMB12,744,799 thousand, primarily comprising property, plant, and equipment in non-current assets and trade and other receivables in current assets Key Data from Condensed Consolidated Statement of Financial Position | Indicator | As of June 30, 2025 (RMB thousand) | As of December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **ASSETS** | | | | Total non-current assets | 16,575,620 | 16,727,382 | | Total current assets | 5,527,958 | 4,941,119 | | **TOTAL ASSETS** | **22,103,578** | **21,668,501** | | **EQUITY** | | | | Total equity | 12,744,799 | 12,504,485 | | **LIABILITIES** | | | | Total non-current liabilities | 6,049,365 | 5,986,271 | | Total current liabilities | 3,309,414 | 3,177,745 | | **TOTAL LIABILITIES** | **9,358,779** | **9,164,016** | [Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) For the six months ended June 30, 2025, total equity attributable to equity holders increased from RMB12,504,485 thousand to RMB12,744,799 thousand, driven by profit for the period and dividend distributions Changes in Equity Attributable to Equity Holders of the Company | Item | As of June 30, 2025 (RMB thousand) | As of June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Balance at beginning of period | 12,504,485 | 12,119,808 | | Profit for the period | 449,842 | 364,448 | | Other comprehensive loss | (2,220) | (127,575) | | Employee share option scheme | (1,746) | (546) | | Dividends | (207,398) | (198,721) | | Transfer to safety reserve | — | — | | Balance at end of period | 12,744,799 | 12,158,023 | [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June 30, 2025, net cash generated from operating activities significantly increased, net cash used in investing activities substantially decreased, and financing activities shifted from net inflow to net outflow Key Data from Condensed Consolidated Statement of Cash Flows | Cash Flow Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net cash generated from operating activities | 308,995 | 169,559 | | Net cash used in investing activities | (186,776) | (624,126) | | Net cash (used in)/generated from financing activities | (100,958) | 316,909 | | Net increase/(decrease) in cash and cash equivalents | 21,261 | (137,658) | | Cash and cash equivalents at end of period | 374,713 | 441,592 | [Notes to the Financial Statements](index=9&type=section&id=%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed notes on the financial statements, covering general information, accounting policies, revenue, expenses, and financial position items [1 General Information](index=9&type=section&id=1%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) Xinyi Energy Holdings Limited and its subsidiaries primarily operate and manage solar farms in China, with interim financial information presented in RMB thousand and approved for publication on August 1, 2025 - The Group primarily operates and manages solar farms in the People's Republic of China[14](index=14&type=chunk) - The unaudited condensed consolidated interim financial information is presented in RMB thousand and was approved for publication by the Board of Directors on August 1, 2025[14](index=14&type=chunk) [2 Basis of Preparation and Changes in Accounting Policies](index=9&type=section&id=2%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96%E5%8F%8A%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E8%AE%8A%E5%8B%95) This interim financial information is prepared in accordance with HKAS 34, with consistent accounting policies from the prior year, but with the first-time adoption of newly revised HKFRSs and a retrospective change in presentation currency to RMB [2(a) Adoption of New Standards, Interpretations and Amendments by the Group](index=9&type=section&id=2(a)%20%E6%9C%AC%E9%9B%86%E5%9C%98%E6%8E%A1%E7%B4%8D%E7%9A%84%E6%96%B0%E8%A8%82%E6%BA%96%E5%89%87%E3%80%81%E8%A7%A3%E9%87%8B%E5%8F%8A%E4%BF%AE%E8%A8%82) The Group adopted revised HKFRSs for the first time in this period, including HKAS 21 (Amendment) "Lack of Exchangeability" - The revised HKFRSs, including HKAS 21 (Amendment) "Lack of Exchangeability," were adopted for the first time in this period[16](index=16&type=chunk)[17](index=17&type=chunk) - The adoption of these revised standards and interpretations is not expected to have any significant impact on the Group's results and financial position for the current or prior periods[16](index=16&type=chunk) [2(b) Standards Issued But Not Yet Effective for Accounting Periods Beginning on or After January 1, 2025, and Not Early Adopted by the Group](index=10&type=section&id=2(b)%20%E6%96%BC%E4%BA%8C%E9%9B%B6%E4%BA%8C%E4%BA%94%E5%B9%B4%E4%B8%80%E6%9C%88%E4%B8%80%E6%97%A5%E8%B5%B7%E9%96%8B%E5%A7%8B%E7%9A%84%E6%9C%83%E8%A8%88%E6%9C%9F%E9%96%93%E5%B7%B2%E9%A0%92%E5%B8%83%E4%BD%86%E5%B0%9A%E6%9C%AA%E7%94%9F%E6%95%88%E4%B8%94%E6%9C%AC%E9%9B%86%E5%9C%98%E4%BA%A6%E7%84%A1%E6%8F%90%E6%97%A9%E6%8E%A1%E7%B4%8D%E7%9A%84%E6%BA%96%E5%89%87%EF%BC%88%E4%BF%AE%E8%A8%82%E6%9C%AC%EF%BC%89) Standards issued but not yet effective include HKFRS 9 and 7 (Amendments) "Classification and Measurement of Financial Instruments" and HKFRS 18 "Presentation and Disclosure in Financial Statements" - Standards issued but not yet effective include HKFRS 9 and 7 (Amendments) "Classification and Measurement of Financial Instruments," Annual Improvements to HKFRSs – Volume 1, and HKFRS 18 "Presentation and Disclosure in Financial Statements"[19](index=19&type=chunk) - The Group is currently assessing the impact of these amended standards, with preliminary assessments indicating no significant impact on financial performance and position[19](index=19&type=chunk) [2(c) Change in Presentation Currency](index=11&type=section&id=2(c)%20%E8%AE%8A%E6%9B%B4%E5%91%88%E5%88%97%E8%B2%A8%E5%B9%A3) The Company decided to adopt RMB as the presentation currency for its consolidated financial statements, with comparative figures retrospectively restated - The Company decided to adopt RMB as the presentation currency for the Group's consolidated financial statements, with retrospective restatement of comparative figures[20](index=20&type=chunk) - The change in presentation currency is due to the majority of the Group's business transactions being settled in RMB and most operations and assets being located in Mainland China, which the Board believes provides a more accurate understanding of financial performance for shareholders and potential investors[20](index=20&type=chunk) [3 Revenue, Other Income and Segment Information](index=11&type=section&id=3%20%E6%94%B6%E7%9B%8A%E3%80%81%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group's revenue primarily derives from electricity sales, tariff adjustments, and solar farm operation and management services, totaling RMB1,210,234 thousand for the six months ended June 30, 2025, with other income of RMB13,508 thousand mainly from government grants Revenue and Other Income Details | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | **REVENUE** | | | | Electricity sales | 740,552 | 644,274 | | Tariff adjustments | 464,998 | 473,854 | | Solar farm operation and management services | 4,684 | 5,925 | | **TOTAL REVENUE** | **1,210,234** | **1,124,053** | | **OTHER INCOME** | | | | Government grants | 11,051 | 3,665 | | Insurance compensation | 723 | 437 | | Others | 1,734 | 4,922 | | **TOTAL OTHER INCOME** | **13,508** | **9,024** | - The Group primarily operates and manages solar farms in China, with no separate operating segment financial information[23](index=23&type=chunk) [4 Other Net Gains](index=12&type=section&id=4%20%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E6%B7%A8%E9%A1%8D) For the six months ended June 30, 2025, the Group's other net gains significantly increased to RMB7,695 thousand, primarily driven by higher net foreign exchange gains Other Net Gains Details | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net foreign exchange gains | 7,596 | 250 | | Loss on disposal of property, plant and equipment | (86) | (70) | | Net fair value gains on financial assets at fair value through profit or loss | 185 | 3,547 | | **TOTAL** | **7,695** | **3,727** | [5 Operating Profit](index=13&type=section&id=5%20%E7%B6%93%E7%87%9F%E6%BA%A2%E5%88%A9) The Group's operating profit for the six months ended June 30, 2025, was RMB731,301 thousand, mainly impacted by increased depreciation expenses for property, plant, and equipment Components of Operating Profit | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Depreciation expenses for property, plant and equipment | 361,755 | 314,713 | | Depreciation expenses for right-of-use assets | 26,060 | 16,684 | | Employee benefit expenses | 30,329 | 30,353 | | Electricity expenses | 13,108 | 15,984 | | Repair and maintenance | 21,445 | 19,058 | | Insurance expenses | 3,361 | 2,520 | [6 Finance Income and Finance Costs](index=13&type=section&id=6%20%E8%B2%A1%E5%8B%99%E6%94%B6%E5%85%A5%E5%8F%8A%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) For the six months ended June 30, 2025, the Group's finance income was RMB1,826 thousand, and finance costs were RMB147,544 thousand, with finance costs decreasing primarily due to lower interest expenses on bank borrowings Finance Income and Finance Costs Details | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | **FINANCE INCOME** | | | | Interest income from bank deposits | 1,511 | 2,583 | | Interest income from loans to associates accounted for using the equity method | 315 | — | | **TOTAL FINANCE INCOME** | **1,826** | **2,583** | | **FINANCE COSTS** | | | | Interest on lease liabilities | 26,298 | 22,313 | | Interest expenses on bank borrowings | 121,246 | 159,859 | | **TOTAL FINANCE COSTS** | **147,544** | **182,172** | [7 Income Tax Expense](index=14&type=section&id=7%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, the Group's income tax expense decreased to RMB135,320 thousand, mainly due to reduced China withholding tax, partially offset by increased taxable profit and more solar farm projects subject to statutory tax rates Income Tax Expense Details | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | China corporate income tax | 142,372 | 149,583 | | Overseas tax | 17 | — | | China withholding tax | 2,500 | 23,000 | | Deferred income tax | (9,569) | (10,254) | | **TOTAL INCOME TAX EXPENSE** | **135,320** | **162,329** | - Chinese subsidiaries enjoy various corporate income tax preferential rates, including a **15%** rate for high-tech enterprises, a **15%** rate for encouraged enterprises in central and western regions (**9%** in 2024), and preferential rates for small low-profit enterprises[29](index=29&type=chunk)[33](index=33&type=chunk) - Dividends paid by Chinese subsidiaries are subject to a **5%** withholding tax[30](index=30&type=chunk) [8 Earnings Per Share](index=15&type=section&id=8%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) For the six months ended June 30, 2025, basic earnings per share attributable to equity holders increased to RMB5.37 cents from RMB4.41 cents in the prior period, with diluted earnings per share being the same as basic earnings per share due to no potential dilutive shares Basic Earnings Per Share Calculation | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit attributable to equity holders of the Company (RMB thousand) | 449,842 | 364,448 | | Weighted average number of ordinary shares in issue (thousand shares) | 8,376,654 | 8,256,589 | | Basic earnings per share (RMB cents) | 5.37 | 4.41 | - For the six months ended June 30, 2025 and 2024, diluted earnings per share were equal to basic earnings per share as there were no potential dilutive shares[34](index=34&type=chunk) [9 Dividends](index=16&type=section&id=9%20%E8%82%A1%E6%81%AF) The Board resolved to declare an interim dividend of 2.9 HK cents per share for the six months ended June 30, 2025, an increase from 2.3 HK cents per share in the prior period Dividend Distribution Status | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Final dividend for 2024 of 2.7 HK cents per share (2023: 2.6 HK cents) | 207,398 | 198,721 | | Proposed interim dividend of 2.9 HK cents per share (2024: 2.3 HK cents) | 222,080 | 177,750 | - The proposed interim dividend totaling HK$242,923,000 (equivalent to RMB222,080,000) has not been recognized as a liability in this interim financial information[35](index=35&type=chunk) [10 Property, Plant and Equipment](index=17&type=section&id=10%20%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) As of June 30, 2025, the Group's net book value of property, plant and equipment was RMB15,216,079 thousand, a slight decrease from the beginning of the period, mainly due to depreciation expenses, but with new additions Changes in Property, Plant and Equipment | Item | Solar Farms (RMB thousand) | Buildings (RMB thousand) | Motor vehicles, furniture and fixtures, equipment and others (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Net book value at beginning of period | 15,222,718 | 144,598 | 27,632 | 15,394,948 | | Additions | 182,348 | — | 6,341 | 188,689 | | Disposals | (5,780) | — | (23) | (5,803) | | Depreciation expenses | (356,069) | (3,463) | (2,223) | (361,755) | | Net book value at end of period | 15,043,217 | 141,135 | 31,727 | 15,216,079 | [11 Trade and Other Receivables and Prepayments](index=18&type=section&id=11%20%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E5%8F%8A%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, the current portion of the Group's trade and other receivables and prepayments increased to RMB5,140,461 thousand, primarily comprising receivables from tariff adjustments Trade and Other Receivables and Prepayments Details | Item | As of June 30, 2025 (RMB thousand) | As of December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Net trade receivables | 4,738,862 | 4,204,565 | | Deposits and other receivables | 38,054 | 43,177 | | Other tax receivables | 270,471 | 304,456 | | Prepayments for land use rights and property, plant and equipment | 33,782 | 27,735 | | Other prepayments | 93,074 | 28,112 | | **CURRENT PORTION** | **5,140,461** | **4,580,310** | Ageing Analysis of Trade Receivables | Ageing | As of June 30, 2025 (RMB thousand) | As of December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 90 days | 441,824 | 378,705 | | 91 to 180 days | 237,053 | 325,528 | | 181 to 365 days | 567,084 | 549,483 | | Over 365 days | 3,540,768 | 2,993,319 | | **TOTAL** | **4,786,729** | **4,247,035** | - Trade receivables include receivables from electricity sales and tariff adjustments, with tariff adjustment receivables (government subsidies) to be collected from state-owned grid companies in accordance with government policies[37](index=37&type=chunk)[38](index=38&type=chunk) [12 Share Capital](index=20&type=section&id=12%20%E8%82%A1%E6%9C%AC) As of June 30, 2025, the Company's authorized share capital was 800,000,000,000 ordinary shares of HK$0.01 each, with 8,376,653,757 issued and fully paid shares totaling RMB72,497 thousand Share Capital Structure | Category | Number of Ordinary Shares | Par Value Per Share (HK$) | Total (HK thousand) | | :--- | :--- | :--- | :--- | | Authorized share capital | 800,000,000,000 | 0.01 | 8,000,000 | | Issued and fully paid share capital | 8,376,653,757 | 0.01 | 72,497 (RMB thousand) | [13 Accruals and Other Payables](index=21&type=section&id=13%20%E6%87%89%E8%A8%88%E8%B2%BB%E7%94%A8%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, the current portion of the Group's accruals and other payables was RMB452,648 thousand, primarily comprising payables for property, plant and equipment, and accrued professional fees, bank loan interest, and staff costs Accruals and Other Payables Details | Item | As of June 30, 2025 (RMB thousand) | As of December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Payables for property, plant and equipment | 407,766 | 418,509 | | Others | 61,863 | 47,373 | | **CURRENT PORTION** | **452,648** | **450,504** | - The carrying amounts of accruals and other payables are primarily denominated in RMB and approximate their fair values[41](index=41&type=chunk) [14 Bank Borrowings](index=22&type=section&id=14%20%E9%8A%80%E8%A1%8C%E5%80%9F%E6%AC%BE) As of June 30, 2025, the Group's total bank borrowings amounted to RMB7,256,873 thousand, with a current portion of RMB2,433,489 thousand, and most borrowings are interest-bearing at floating rates and have been converted to RMB denomination Bank Borrowings Repayment Schedule Analysis | Term | As of June 30, 2025 (RMB thousand) | As of December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 2,433,489 | 2,541,250 | | 1 to 2 years | 849,596 | 840,041 | | 2 to 5 years | 1,424,753 | 1,696,935 | | Over 5 years | 2,549,035 | 2,252,248 | | **TOTAL** | **7,256,873** | **7,330,474** | Bank Borrowings Currency Composition | Currency | As of June 30, 2025 (RMB thousand) | As of December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | HKD | — | 1,521,340 | | RMB | 7,256,873 | 5,809,134 | | **TOTAL** | **7,256,873** | **7,330,474** | - As of June 30, 2025, the average effective interest rate for bank borrowings was **2.88%**, a decrease from **3.50%** as of December 31, 2024[44](index=44&type=chunk) - The Company and its subsidiaries provide corporate guarantees for bank borrowings[44](index=44&type=chunk) [15 Related Party Transactions](index=23&type=section&id=15%20%E9%97%9C%E8%81%AF%E6%96%B9%E4%BA%A4%E6%98%93) The Group engaged in various ordinary course of business transactions with related parties, including subsidiary acquisitions, operation and management services, green electricity certificate sales, office and land leases, and related receivables, payables, and loans [15(a) Summary of Related Party Transactions](index=23&type=section&id=15(a)%20%E9%97%9C%E8%81%AF%E6%96%B9%E4%BA%A4%E6%98%93%E6%A6%82%E8%A6%81) The Group's related party transactions include acquiring a subsidiary from a fellow subsidiary, providing solar farm operation and management services, selling green electricity certificates, and interest income from loans to associates Related Party Transactions Details | Transaction Type | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Acquisition of a subsidiary from a fellow subsidiary | 14,839 | 140,534 | | Receivables for solar farm operation and management services from Xinyi Solar subsidiaries | 4,613 | 5,925 | | Sale of green electricity certificates to Xinyi Solar | 227 | — | | Interest income from loans to associates accounted for using the equity method | 315 | — | - These transactions constitute continuing connected transactions as defined in Chapter 14A of the Listing Rules, conducted at prices and terms agreed upon by the parties[46](index=46&type=chunk) [15(b) Balances with Related Parties](index=24&type=section&id=15(b)%20%E9%97%9C%E8%81%AF%E6%96%B9%E7%B5%90%E9%A4%98) Balances with related parties include amounts due from fellow subsidiaries, receivables from associates accounted for using the equity method, loans to associates, and amounts due to fellow subsidiaries Related Party Balances Details | Item | As of June 30, 2025 (RMB thousand) | As of December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Amounts due from fellow subsidiaries | 1,657 | 1,336 | | Receivables from associates accounted for using the equity method | — | 2,235 | | Loans to associates accounted for using the equity method | 7,968 | — | | Amounts due to fellow subsidiaries | (85,743) | (85,912) | - Amounts due from and to related parties and loans to associates accounted for using the equity method are unsecured, interest-free, repayable on demand, and denominated in HKD, RMB, and Malaysian Ringgit[48](index=48&type=chunk) - Loans to associates accounted for using the equity method are denominated in Ringgit and bear interest at an effective rate of **7.9%**[49](index=49&type=chunk) [15(c) Leases](index=25&type=section&id=15(c)%20%E7%A7%9F%E8%B3%83) The Group leases office and land space from related parties, with rental terms agreed upon by both parties Interest Expenses on Related Party Lease Liabilities | Related Party | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Smart Harvest Investment Limited | 3 | 3 | | Xinyi Energy (Wuhu) Co., Ltd. | 30 | 52 | | Xinde Park (Wuhu) Co., Ltd. | 19 | — | | **TOTAL** | **52** | **55** | - The Group leases office space and land space from related parties, with rental terms agreed upon by both parties[50](index=50&type=chunk) [15(d) Key Management Personnel Remuneration](index=26&type=section&id=15(d)%20%E4%B8%BB%E8%A6%81%E7%AE%A1%E7%90%86%E4%BA%BA%E5%93%A1%E8%96%AA%E9%85%AC) Key management personnel remuneration includes salaries, allowances, benefits in kind, retirement benefit scheme contributions, and share options granted Key Management Personnel Remuneration Details | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Salaries, allowances and benefits in kind | 2,350 | 6,018 | | Contributions to retirement benefit schemes | 33 | 33 | | Share options granted | 17 | — | | **TOTAL** | **2,400** | **6,051** | [16 Contingent Liabilities](index=26&type=section&id=16%20%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, and December 31, 2024, the Group had no significant contingent liabilities - The Group had no significant contingent liabilities at the end of the reporting period[53](index=53&type=chunk) [Management Discussion and Analysis](index=27&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) This section provides an overview of the Group's operating results, financial position, liquidity, business outlook, and strategies for the period [Overview](index=27&type=section&id=%E6%A6%82%E8%A7%88) China's carbon peak and neutrality goals, coupled with supportive policies, have driven rapid growth in the photovoltaic industry, with technology maturity and cost reductions solidifying solar power's clean energy status, despite grid curtailment losses and lower market-based electricity prices impacting revenue - China's "carbon peak before 2030 and carbon neutrality before 2060" targets and various supportive policies are driving rapid development in the photovoltaic industry[54](index=54&type=chunk) - Policies such as the "Administrative Measures for the Development and Construction of Distributed Photovoltaic Power Generation" and the "Notice on Deepening the Market-Oriented Reform of New Energy On-grid Tariffs to Promote High-Quality Development of New Energy" led to two rounds of "rush installations" in the first half of 2025, with new photovoltaic installed capacity exceeding **200 GW**[54](index=54&type=chunk)[55](index=55&type=chunk) - During the period, the Group incurred some curtailment losses due to grid absorption limitations, and some market-based electricity transaction prices were slightly lower than on-grid tariffs, leading to a decrease in electricity sales revenue[56](index=56&type=chunk) Key Financial Performance for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,210.2 | 1,124.0 | 7.7% | | Profit attributable to equity holders of the Company | 449.8 | 364.4 | 23.4% | | Basic earnings per share (RMB cents) | 5.37 | 4.41 | - | [Operating Results Analysis](index=30&type=section&id=%E7%B6%93%E7%87%9F%E6%A5%AD%E7%B8%BE%E5%88%86%E6%9E%90) The Group's revenue grew by 7.7% in the first half of 2025, primarily due to expanded solar farm project capacity, though partially offset by curtailment losses and market-based electricity transactions, while gross profit and net profit increased, and finance costs and income tax expenses decreased [Revenue Contribution for H1 2025](index=30&type=section&id=%E4%BA%8C%E9%9B%B6%E4%BA%8C%E4%BA%94%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E6%94%B6%E7%9B%8A%E8%B2%A2%E7%8D%BB) The Group's total electricity generation increased by 22.7% in H1 2025, driven by new acquisitions and full operation of the 2024 portfolio, despite some offset from grid curtailment and increased market-based transactions - In the first half of 2025, the Group's total electricity generation from solar farm projects increased by **22.7%** compared to the first half of 2024, primarily due to the successful acquisition of a large solar farm project and the full operation of the 2024 portfolio[57](index=57&type=chunk) - The 2024 portfolio and 2025 portfolio together contributed **RMB137.1 million** in revenue to the Group[57](index=57&type=chunk) - The increase in revenue was partially offset by curtailment losses due to grid absorption limitations and an increase in the frequency and volume of market-based electricity transactions[57](index=57&type=chunk) [Expansion of Solar Farm Project Capacity in H1 2025](index=30&type=section&id=%E4%BA%8C%E9%9B%B6%E4%BA%8C%E4%BA%94%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E5%A4%AA%E9%99%BD%E8%83%BD%E7%99%BC%E9%9B%BB%E5%A0%B4%E9%A0%85%E7%9B%AE%E5%AE%B9%E9%87%8F%E6%93%B4%E5%85%85) In the first half of 2025, the Group acquired a 30 MW grid-parity solar farm project in China, bringing its total approved generation capacity to 4,540.5 MW, with a focus on grid-parity projects to enhance operating cash flow - In the first half of 2025, the Group acquired a **30 MW** grid-parity solar farm project in China from Xinyi Solar Group[58](index=58&type=chunk) - As of June 30, 2025, the Group operated and held solar farm projects with a total approved generation capacity of **4,540.5 MW**, comprising **1,734 MW** under the on-grid tariff policy and **2,806.5 MW** under the grid-parity policy[58](index=58&type=chunk) - The Group focuses on investing in solar farm projects under the grid-parity policy, with electricity sales contributing **61.2%** of revenue, an increase of **14.9%**, driving continuous improvement in operating cash flow[58](index=58&type=chunk) [Revenue](index=31&type=section&id=%E6%94%B6%E7%9B%8A) The Group's revenue primarily stems from solar power generation and the provision of solar farm operation and management services - The Group's revenue primarily comes from solar power generation and the provision of solar farm operation and management services[59](index=59&type=chunk) Revenue Comparative Analysis | Item | H1 2025 (RMB million) | Percentage | H1 2024 (RMB million) | Percentage | Change (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Electricity sales | 740.5 | 61.2 | 644.2 | 57.3 | 96.3 | 14.9 | | Tariff adjustments | 465.0 | 38.4 | 473.9 | 42.2 | (8.9) | (1.9) | | Operation and management services | 4.7 | 0.4 | 5.9 | 0.5 | (1.2) | (20.3) | | **TOTAL** | **1,210.2** | **100.0** | **1,124.0** | **100.0** | **86.2** | **7.7** | - As of the first half of 2025, the Group operated solar farm projects with a total approved capacity of **4,540.5 MW**, including initial projects, the 2019-2024 portfolios, and the newly added Sanshan Gaoan solar farm in the first half of 2025[63](index=63&type=chunk)[64](index=64&type=chunk) [Cost of Sales](index=33&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) Cost of sales increased by RMB61.1 million to RMB462.8 million, mainly due to higher depreciation expenses for property, plant and equipment, right-of-use assets, and increased repair and maintenance expenses for the 2024 portfolio - Cost of sales increased by **RMB61.1 million** to **RMB462.8 million**, primarily due to increased depreciation expenses for property, plant and equipment and right-of-use assets, as well as higher repair and maintenance expenses for the 2024 portfolio[66](index=66&type=chunk) [Gross Profit](index=33&type=section&id=%E6%AF%9B%E5%88%A9) Gross profit increased by RMB25.1 million or 3.5% to RMB747.4 million, while the gross profit margin decreased from 64.3% to 61.8%, mainly because revenue growth outpaced cost of sales growth - Gross profit increased by **RMB25.1 million** or **3.5%** to **RMB747.4 million**, with the gross profit margin decreasing from **64.3%** to **61.8%**, primarily because revenue growth exceeded cost of sales growth[67](index=67&type=chunk) [Other Income](index=34&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Other income increased by RMB4.5 million to RMB13.5 million, mainly due to higher government grants and insurance compensation in China - Other income increased by **RMB4.5 million** to **RMB13.5 million**, primarily due to increased government grants and insurance compensation in China[68](index=68&type=chunk) [Other Net Gains](index=34&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E6%B7%A8%E9%A1%8D) Other net gains significantly increased by RMB4.0 million to RMB7.7 million, primarily driven by higher foreign exchange gains - Other net gains significantly increased by **RMB4.0 million** to **RMB7.7 million**, primarily due to increased foreign exchange gains[69](index=69&type=chunk) [Administrative Expenses](index=34&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Administrative expenses increased by RMB9.3 million to RMB31.9 million, mainly due to higher miscellaneous expenses and insurance expenses - Administrative expenses increased by **RMB9.3 million** to **RMB31.9 million**, primarily due to increased miscellaneous expenses and insurance expenses[70](index=70&type=chunk) [Finance Costs](index=34&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) Total finance costs decreased to RMB147.5 million, mainly due to lower effective interest rates on bank borrowings and a slight reduction in interest-bearing bank borrowing balances - Total finance costs decreased to **RMB147.5 million**, primarily due to a decrease in the effective interest rate on bank borrowings and a slight reduction in interest-bearing bank borrowing balances[71](index=71&type=chunk) - Interest on lease liabilities slightly increased to **RMB26.3 million** due to the completion of the acquisition of the 2024 portfolio[71](index=71&type=chunk) [Income Tax Expense](index=35&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense decreased to RMB135.3 million, mainly due to reduced China withholding tax, partially offset by increased taxable profit and more solar farm projects becoming subject to statutory tax rates - Income tax expense decreased to **RMB135.3 million**, primarily due to a reduction in China withholding tax, partially offset by an increase in taxable profit and more solar farm projects becoming subject to statutory tax rates[72](index=72&type=chunk) [EBITDA and Net Profit](index=35&type=section&id=EBITDA%E5%8F%8A%E7%B4%94%E5%88%A9) EBITDA increased by 7.7% to RMB1,120.5 million, and net profit attributable to equity holders increased by 23.4% to RMB449.8 million, with the net profit margin improving to 37.2% EBITDA and Net Profit Performance | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | EBITDA | 1,120.5 | 1,040.9 | 7.7% | | Net profit attributable to equity holders of the Company | 449.8 | 364.4 | 23.4% | | Net profit margin | 37.2% | 32.4% | 4.8 percentage points | - The increase in net profit margin was primarily due to higher revenue, lower finance costs, and reduced income tax expense, partially offset by increased depreciation expenses[73](index=73&type=chunk) [Financial Position and Liquidity](index=36&type=section&id=%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E5%8F%8A%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91) As of June 30, 2025, the Group maintained a robust financial position with growth in total assets and net assets, improved current ratio and net gearing ratio, significantly increased operating cash flow, reduced investing cash outflow, and increased financing cash outflow Key Financial Position Indicators | Indicator | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Total assets | RMB22,103.6 million | RMB21,668.5 million | | Net assets | RMB12,744.8 million | RMB12,504.5 million | | Current ratio | 1.7 | 1.6 | | Net gearing ratio | 54.0% | 55.8% | Cash Flow Performance | Cash Flow Category | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Net cash generated from operating activities | 309.0 | 169.6 | | Net cash used in investing activities | (186.8) | (624.1) | | Net cash (used in)/generated from financing activities | (101.0) | 316.9 | | Cash and cash equivalents at end of period | 374.7 | 441.6 | - Net cash generated from operating activities increased primarily due to higher profit before income tax and lower interest and income tax paid, partially offset by an increase in trade and other receivables[75](index=75&type=chunk) - Net cash used in financing activities was mainly due to repayment of bank borrowings of **RMB994.6 million**, partially offset by new bank borrowings of **RMB921.0 million**[75](index=75&type=chunk) [Business Outlook and Strategies](index=37&type=section&id=%E6%A5%AD%E5%8B%99%E5%B1%95%E6%9C%9B%E5%8F%8A%E7%AD%96%E7%95%A5) Facing new energy market reforms and electricity price volatility, the Group is adjusting its operating strategies, including signing medium-to-long-term power purchase agreements, establishing a market-oriented trading team, and developing AI prediction models, while also planning to set up an infrastructure securities investment fund to optimize financing structure and actively expand into overseas markets like Malaysia, Japan, and other Asia-Pacific regions [Policy Impact and Responses](index=37&type=section&id=%E6%94%BF%E7%AD%96%E5%BD%B1%E9%9F%BF%E8%88%87%E6%87%89%E5%B0%8D) China's new energy market reforms are shifting electricity prices from policy-driven to market-driven, prompting the Group to monitor policy developments and assess their impact on operations, project returns, and investment strategies - China's new energy market-oriented reform is shifting electricity prices from policy-driven to market-driven, and the Group is closely monitoring policy developments and assessing their impact on business operations, project returns, and investment strategies[76](index=76&type=chunk) - Due to unclear policy details, the Group's annual acquisition plan from Xinyi Solar Group for 2025 has been postponed[77](index=77&type=chunk) - To counter declining market-based transaction electricity prices, the Group plans to sign medium-to-long-term power purchase agreements to stabilize electricity sales prices, establish a market-oriented trading team, and utilize AI prediction models to enhance decision-making efficiency[78](index=78&type=chunk) - The Group is implementing a plan to establish an infrastructure securities investment fund for selected solar farm assets, aiming for listing on a Chinese stock exchange to partially realize its portfolio and enhance financial flexibility[78](index=78&type=chunk) [Financing Strategy](index=38&type=section&id=%E8%9E%8D%E8%B3%87%E7%AD%96%E7%95%A5) To address rising financing costs, the Group increased domestic long-term bank loans to refinance existing offshore short-term loans, effectively reducing overall financing costs and converting all non-RMB bank loans to RMB to mitigate exchange rate volatility - To counter rising financing costs, the Group increased domestic long-term bank loans to refinance original offshore short-term loans, effectively reducing overall financing costs[79](index=79&type=chunk) - In the first half of 2025, the Group completed the currency conversion of all non-RMB denominated bank loans to RMB denominated loans to mitigate the impact of exchange rate fluctuations[79](index=79&type=chunk) - As of June 30, 2025, short-term borrowings accounted for **33.5%** of bank loans, lower than **34.7%** as of December 31, 2024, reflecting improved capital structure stability[79](index=79&type=chunk) [Overseas Business Expansion](index=39&type=section&id=%E6%B5%B7%E5%A4%96%E6%A5%AD%E5%8B%99%E6%8B%93%E5%B1%95) The Group's joint venture secured a 100 MW large-scale solar farm project in Malaysia in mid-2024, with construction expected to commence in the second half of 2025, as the Group continues to seek new energy opportunities in Malaysia, Japan, and other Asia-Pacific regions - The Group's joint venture won a bid for a **100 MW** large-scale solar farm project in Malaysia in mid-2024, with construction expected to commence in the second half of 2025[80](index=80&type=chunk) - The Group will continue to identify potential new energy opportunities in Malaysia and other overseas markets, including Japan and other Asia-Pacific regions, to expand its business footprint and enhance asset returns[80](index=80&type=chunk) [Capital Expenditure and Commitments](index=39&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF%E5%8F%8A%E6%89%BF%E6%93%94) In the first half of 2025, the Group incurred capital expenditure of RMB182.7 million, primarily for acquiring, improving existing, and adding new solar farm projects, as well as settling outstanding capital expenditures, with no capital commitments as of June 30, 2025 - In the first half of 2025, the Group incurred capital expenditure of **RMB182.7 million**[81](index=81&type=chunk) - Capital expenditure was primarily used for acquiring and improving existing and new solar farm projects, and settling outstanding capital expenditures for completed construction projects[81](index=81&type=chunk) - As of June 30, 2025, the Group had no capital commitments[81](index=81&type=chunk) [Pledged Assets](index=39&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group had not pledged any assets as collateral for bank borrowings - As of June 30, 2025, the Group had not pledged any assets as collateral for bank borrowings[82](index=82&type=chunk) [Contingent Liabilities](index=40&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[83](index=83&type=chunk) [Significant Acquisitions and Disposals of Subsidiaries](index=40&type=section&id=%E9%87%8D%E5%A4%A7%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) In the first half of 2025, the Group completed the acquisition of Wuhu Xintu New Energy Co., Ltd., a 30 MW solar farm project in China, with no other significant subsidiary acquisitions or disposals during the period - In the first half of 2025, the Group completed the acquisition of Wuhu Xintu New Energy Co., Ltd., a solar farm project in China with an approved capacity of **30 MW**[84](index=84&type=chunk) - Other than the aforementioned disclosure, there were no other significant acquisitions or disposals of subsidiaries in the first half of 2025[85](index=85&type=chunk) [Treasury Policy and Exchange Rate Fluctuation Risk](index=40&type=section&id=%E8%B2%A1%E8%B3%87%E6%94%BF%E7%AD%96%E5%8F%8A%E5%8C%AF%E7%8E%87%E6%B3%A2%E5%8B%95%E9%A2%A8%E9%9A%AA) The Group's primary business transactions and assets are RMB-denominated, resulting in no significant foreign exchange risk, and all HKD-denominated bank borrowings were converted to RMB to further mitigate risk, with no financial instruments used for hedging during the period - The Group's consolidated financial statements are presented in RMB, which is also the functional currency of its major subsidiaries, while the Company's functional currency is HKD[86](index=86&type=chunk) - As most business transactions are settled in RMB and assets are located in China, the Group does not face significant foreign exchange risk[86](index=86&type=chunk) - To mitigate foreign exchange risk, the Group completed the conversion of all HKD-denominated bank borrowings to RMB-denominated bank borrowings in the first half of 2025[86](index=86&type=chunk) [Employees and Remuneration Policy](index=41&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group had 428 full-time employees in Hong Kong and China, with total staff costs of RMB30.3 million, and remuneration is based on qualifications, job nature, performance, and market levels, including MPF schemes and statutory social security contributions - As of June 30, 2025, the Group had **428** full-time employees in Hong Kong and China[87](index=87&type=chunk) - Total staff costs (including directors' emoluments) for the first half of 2025 amounted to **RMB30.3 million**[87](index=87&type=chunk) - Employee remuneration is determined based on qualifications, job nature, performance, and work experience, with reference to current market remuneration levels, and includes contributions to MPF schemes and statutory social security[87](index=87&type=chunk) [Other Information](index=41&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) This section covers additional information including capital structure, share option scheme, post-balance sheet events, interim dividend, securities transactions, corporate governance, and board details [Capital Structure](index=41&type=section&id=%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B) There were no significant changes to the Company's capital structure in the first half of 2025, with the company's share capital consisting of ordinary shares - There were no significant changes to the Company's capital structure in the first half of 2025[88](index=88&type=chunk) - The Group's share capital consists of ordinary shares[88](index=88&type=chunk) [Share Option Scheme](index=41&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%88%83) Under the share option scheme adopted in November 2018, the Company granted 3,500,000 share options to selected employees in March 2025, valid until March 31, 2029, with phased vesting conditions - In March 2025, **3,500,000** share options were granted to selected employees[89](index=89&type=chunk) - The share options are valid from March 31, 2025, to March 31, 2029[89](index=89&type=chunk) - One-third of the share options will vest on December 31, 2025, 2026, and 2027, respectively, provided the grantees meet the vesting conditions outlined in the grant letter[89](index=89&type=chunk) [Post Balance Sheet Events](index=42&type=section&id=%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) As of the date of this announcement, no significant events affecting the Group have occurred since June 30, 2025 - No significant events affecting the Group have occurred after June 30, 2025, and up to the date of this announcement[90](index=90&type=chunk) [Interim Dividend and Closure of Register of Members](index=42&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF%E5%8F%8A%E6%9A%AB%E5%81%9C%E8%BE%A6%E7%90%86%E8%82%A1%E4%BB%BD%E9%81%8E%E6%88%B6%E7%99%BB%E8%A8%98) The Board resolved to declare an interim dividend of 2.9 HK cents per share for the first half of 2025, with the register of members to be closed from August 18 to August 20, 2025, and shareholders having the option to receive dividends in cash or scrip - The Board resolved to declare an interim dividend of **2.9 HK cents** per share for the first half of 2025 (first half of 2024: **2.3 HK cents**)[91](index=91&type=chunk) - The interim dividend is expected to be paid on or around October 10, 2025[91](index=91&type=chunk) - The Company's register of members will be closed from August 18 to August 20, 2025 (both dates inclusive), with the record date for determining shareholders entitled to the interim dividend being August 20, 2025[91](index=91&type=chunk) - Shareholders will be given an option to elect to receive the interim dividend in cash or in new fully paid shares of the Company in lieu of cash, in whole or in part[91](index=91&type=chunk) [Purchase, Sale or Redemption of the Company’s Listed Securities](index=43&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B2%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) In the first half of 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - In the first half of 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[93](index=93&type=chunk) [Corporate Governance](index=43&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The Directors confirm that the Company complied with the applicable code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the HKEX Listing Rules during the first half of 2025 - The Directors confirm that the Company complied with the applicable code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the HKEX Listing Rules during the first half of 2025[94](index=94&type=chunk) [Standard Code for Securities Transactions](index=43&type=section&id=%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%8F%88%E5%89%87) The Company adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as its own code of conduct, and all Directors confirmed compliance during the first half of 2025 - The Company adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as its own code of conduct for directors' securities transactions[95](index=95&type=chunk) - All Directors confirmed their compliance with the required standards of dealing set out in the Standard Code during the first half of 2025[95](index=95&type=chunk) [Review of Interim Results](index=43&type=section&id=%E5%AF%A9%E9%96%8B%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) The Company's unaudited interim results for the first half of 2025 were not reviewed by external auditors but were reviewed by the Audit Committee - The Company's unaudited interim results for the first half of 2025 were not reviewed by external auditors[96](index=96&type=chunk) - The interim results were reviewed by the Company's Audit Committee, which comprises three independent non-executive directors[96](index=96&type=chunk) [Publication of Interim Report](index=44&type=section&id=%E5%88%8A%E8%BC%89%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) The Company's interim report for the first half of 2025 will be published on the HKEX and the Company's website in due course - The Company's interim report for the first half of 2025 will be published on the HKEX and the Company's website in due course[97](index=97&type=chunk)[100](index=100&type=chunk) [Board Information](index=44&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E8%B3%87%E6%96%99) As of the date of this announcement, the Board of Directors comprises four executive directors and three independent non-executive directors, with Mr. Li Sing Pui as Chairman - As of the date of this announcement, the Board of Directors comprises four executive directors (Mr. Li Sing Pui, Tan Sri Dato' David Chua, Mr. Dong Kuang Ya, Mr. Li Youqing) and three independent non-executive directors (Mr. Leung Ting Yuk, Mr. Ip Kwok Him, Ms. Lyu Fang)[99](index=99&type=chunk) - The Chairman of the Board is Mr. Li Sing Pui[98](index=98&type=chunk)[99](index=99&type=chunk)

[Company Information and Declarations](index=1&type=section&id=Company%20Information%20and%20Declarations) This section outlines the characteristics of the GEM market, directors' responsibilities, and disclaimers regarding the report's content [GEM Characteristics and Disclaimer](index=2&type=section&id=GEM%20Characteristics%20and%20Disclaimer) This section describes the characteristics of the GEM market, noting its high investment risk and lack of guaranteed liquidity, while the Stock Exchange disclaims responsibility for the report's content - The GEM market provides a listing platform for small and medium-sized companies, but carries **higher investment risks** and does not guarantee high liquidity[3](index=3&type=chunk) [Directors' Responsibility Statement](index=2&type=section&id=Directors'%20Responsibility%20Statement) The company's directors collectively and individually assume full responsibility for this report, confirming its truthfulness, completeness, and absence of misleading or fraudulent information - All directors of the company jointly and individually assume full responsibility for this report, confirming the information is true, complete, and not misleading[4](index=4&type=chunk) [Interim Results Summary](index=3&type=section&id=Interim%20Results%20Summary) Chengang Technology's unaudited revenue for the six months ended May 31, 2025, increased by 37.1% to HKD 17.611 million, with net loss significantly narrowing by 63.1% to HKD 1.906 million, and basic loss per share decreasing to 0.42 HK cents, indicating improved profitability 2025 H1 Key Financial Data Comparison | Indicator | Six Months Ended May 31, 2025 (HKD thousands) | Six Months Ended May 31, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 17,611 | 12,850 | +37.1% | | Net Loss | (1,906) | (5,165) | -63.1% | | Basic Loss Per Share | HK cents (0.42) | HK cents (1.09) | -61.47% | [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the company's unaudited condensed consolidated statement of profit or loss and other comprehensive income, statement of financial position, statement of cash flows, and statement of changes in equity for the six months ended May 31, 2025, detailing the group's financial performance, asset-liability structure, cash flows, and changes in shareholders' equity [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended May 31, 2025, revenue increased by 37.1%, but a larger increase in cost of sales led to a 44.25% decrease in gross profit; however, a swing from net other loss to income and effective control over operating expenses significantly narrowed operating and pre-tax losses, reducing the loss for the period by 63.1% Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Six Months Ended May 31) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 17,611 | 12,850 | +37.1% | | Cost of Sales | (14,837) | (7,874) | +88.4% | | Gross Profit | 2,774 | 4,976 | -44.25% | | Net Other Income or Losses | 1,693 | (1,792) | N/A (Swing from loss to income) | | Loss from Operations | (1,118) | (4,469) | -74.9% | | Loss Before Tax | (1,906) | (5,165) | -63.1% | | Loss and Total Comprehensive Loss for the Period | (1,906) | (5,165) | -63.1% | | Basic Loss Per Share (HK cents) | (0.42) | (1.09) | -61.47% | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of May 31, 2025, the company's total assets decreased compared to November 30, 2024, and total equity swung from positive to negative, indicating financial challenges, with a significant expansion in net current liabilities suggesting increased short-term repayment pressure Condensed Consolidated Statement of Financial Position (As of May 31) | Indicator | May 31, 2025 (HKD thousands) | November 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 24,671 | 27,151 | -9.0% | | Equity Attributable to Owners of the Company | (1,347) | 646 | N/A (Swing from positive to negative) | | Total Equity | (1,333) | 573 | N/A (Swing from positive to negative) | | Total Liabilities | 26,004 | 26,578 | -2.2% | | Net Current Liabilities | (2,174) | (292) | +644.5% | [Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended May 31, 2025, the company's operating cash flow shifted from a net inflow to a net outflow compared to the prior year, resulting in a net decrease in cash and cash equivalents and a significant decline in the period-end cash balance Condensed Consolidated Statement of Cash Flows (Six Months Ended May 31) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Net Cash (Used in) / Generated from Operating Activities | (4,755) | 7,358 | Swing from generated to used | | Net Cash Generated from Investing Activities | 3 | – | Small inflow | | Net Cash Used in Financing Activities | (154) | (223) | Reduced usage | | Net (Decrease) / Increase in Cash and Cash Equivalents | (4,906) | 7,135 | Swing from increase to decrease | | Cash and Cash Equivalents at End of Period | 6,588 | 13,258 | -50.3% | [Condensed Consolidated Statement of Changes in Equity](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of May 31, 2025, equity attributable to owners of the company and total equity both swung from positive to negative compared to the prior year, reflecting the erosion of shareholders' equity by the loss for the period Condensed Consolidated Statement of Changes in Equity (As of May 31) | Indicator | May 31, 2025 (HKD thousands) | May 31, 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Total Attributable to Owners of the Company | (1,347) | 3,010 | Swing from positive to negative | | Non-controlling Interests | 14 | – | New addition | | Total Equity | (1,333) | 3,010 | Swing from positive to negative | [Notes to the Condensed Consolidated Interim Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section details the basis of preparation, accounting policies, and impact of new accounting standards for the condensed consolidated interim financial statements, along with specific disclosures and analysis of key financial items such as revenue, segment information, other income, loss components, finance costs, taxation, dividends, loss per share, receivables, reserves, and payables [Basis of Preparation](index=9&type=section&id=Basis%20of%20Preparation) The condensed consolidated interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the HKICPA, complying with GEM Listing Rules and Hong Kong Companies Ordinance disclosure requirements, and have been reviewed by the audit committee but not audited by the company's auditors - The condensed consolidated interim financial statements are prepared under **HKAS 34**, reviewed by the audit committee, but not audited by the company's auditors[11](index=11&type=chunk) [Impact of New Hong Kong Financial Reporting Standards and Hong Kong Accounting Standards](index=9&type=section&id=Impact%20of%20New%20Hong%20Kong%20Financial%20Reporting%20Standards%20and%20Hong%20Kong%20Accounting%20Standards) The Group first adopted new and revised Hong Kong Financial Reporting Standards and Hong Kong Accounting Standards effective from December 1, 2024, which, apart from leading to new accounting policies and additional disclosures in certain cases, had no significant impact on the financial statements for the current period - The first adoption of new and revised HKFRS and HKAS had **no significant impact** on the financial statements, except for new accounting policies and additional disclosures[12](index=12&type=chunk) [Revenue](index=10&type=section&id=Revenue) The Group primarily derives revenue from professional services, computer software licensing and related services, maintenance services, sales of computer hardware and related products, and fintech resource services; for the six months ended May 31, 2025, total revenue grew significantly, with maintenance services being the main driver, while computer software licensing and fintech resource services revenue decreased Revenue Breakdown (Six Months Ended May 31) | Revenue Source | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Provision of professional services | 1,086 | – | N/A (New) | | Computer software licensing and provision of related services | 1,304 | 1,676 | -22.2% | | Provision of maintenance services | 10,077 | 5,658 | +78.1% | | Sales of computer hardware and related products | – | 18 | N/A (Ceased) | | Provision of fintech resource services | 5,144 | 5,498 | -6.5% | | **Total Revenue** | **17,611** | **12,850** | **+37.1%** | [Segment Information](index=11&type=section&id=Segment%20Information) The Group's business is divided into financial solutions and support services segments; the financial solutions segment saw significant revenue growth but swung from profit to loss, while the support services segment experienced growth in both revenue and results; central administrative costs decreased significantly, and financial assets at fair value through profit or loss swung from loss to gain, positively impacting the narrowing of the overall loss before tax [Segment Revenue and Results](index=11&type=section&id=Segment%20Revenue%20and%20Results) For the six months ended May 31, 2025, the financial solutions segment's revenue grew by 57.2% but its segment result swung from profit to loss, while the support services segment's revenue increased by 10.1% and its result also grew; central administrative costs significantly decreased, and financial assets at fair value through profit or loss swung from loss to gain, collectively contributing to a substantial narrowing of the loss before tax Segment Revenue and Results (Six Months Ended May 31) | Segment | 2025 Revenue (HKD thousands) | 2024 Revenue (HKD thousands) | Revenue Change (%) | 2025 Segment Result (HKD thousands) | 2024 Segment Result (HKD thousands) | Result Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Financial Solutions | 11,559 | 7,352 | +57.2% | (1,651) | 1,701 | Swing from profit to loss | | Support Services | 6,052 | 5,498 | +10.1% | 149 | 84 | +77.4% | | **Total** | **17,611** | **12,850** | **+37.1%** | **(1,502)** | **1,785** | Swing from profit to loss | | Central Administrative Costs | | | | (1,306) | (4,269) | -69.4% | | Fair Value Gain / (Loss) on Financial Assets at Fair Value Through Profit or Loss | | | | 1,695 | (1,987) | Swing from loss to gain | [Segment Assets and Liabilities](index=12&type=section&id=Segment%20Assets%20and%20Liabilities) As of May 31, 2025, both assets and liabilities of the financial solutions segment decreased, while those of the support services segment increased; overall, the Group's consolidated total assets and total liabilities slightly decreased Segment Assets and Liabilities (As of May 31) | Segment | 2025 Assets (HKD thousands) | 2024 Assets (HKD thousands) | Asset Change (%) | 2025 Liabilities (HKD thousands) | 2024 Liabilities (HKD thousands) | Liability Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Financial Solutions | 13,903 | 24,164 | -42.4% | 9,767 | 12,005 | -18.7% | | Support Services | 3,172 | 2,606 | +21.7% | 1,228 | 483 | +154.2% | | **Consolidated Total Assets** | **24,671** | **30,120** | **-18.1%** | **Consolidated Total Liabilities** | **26,004** | **27,110** | **-4.1%** | [Other Segment Information](index=12&type=section&id=Other%20Segment%20Information) For the six months ended May 31, 2025, depreciation expense for property, plant and equipment decreased, while depreciation expense for right-of-use assets significantly increased, reflecting changes in asset structure and usage Other Segment Information (Six Months Ended May 31) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 29 | 51 | -43.1% | | Depreciation of right-of-use assets | 179 | 7 | +2457.1% | [Geographical Segments](index=13&type=section&id=Geographical%20Segments) All of the Group's revenue and non-current assets are derived from Hong Kong, thus no geographical segment information is presented - All Group revenue and non-current assets are located in Hong Kong, thus no geographical segment information is presented[22](index=22&type=chunk) [Information about Major Customers](index=13&type=section&id=Information%20about%20Major%20Customers) For the six months ended May 31, 2025, Customer A contributed HKD 2.182 million in revenue to the Group, primarily from the support services segment, becoming a major customer contributing over 10% of total revenue during the period - Customer A contributed **HKD 2,182 thousand** in revenue in H1 2025, primarily from the support services segment[23](index=23&type=chunk) [Net Other Income or Losses](index=13&type=section&id=Net%20Other%20Income%20or%20Losses) For the six months ended May 31, 2025, the Group's net other income or losses swung from a loss of HKD 1.792 million in the prior year to an income of HKD 1.693 million, primarily due to fair value gains on financial assets at fair value through profit or loss Net Other Income or Losses (Six Months Ended May 31) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Fair value gain / (loss) on financial assets at fair value through profit or loss | 1,695 | (1,987) | Swing from loss to gain | | **Total** | **1,693** | **(1,792)** | Swing from loss to gain | [Loss Before Tax](index=13&type=section&id=Loss%20Before%20Tax) For the six months ended May 31, 2025, the Group's loss before tax significantly narrowed, mainly due to a substantial 66.5% reduction in staff costs (excluding directors' emoluments) and a decrease in depreciation of property, plant and equipment, despite a significant increase in depreciation of right-of-use assets Loss Before Tax Components (Six Months Ended May 31) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 29 | 51 | -43.1% | | Depreciation of right-of-use assets | 179 | 7 | +2457.1% | | Staff costs (excluding directors' emoluments) | 2,383 | 7,108 | -66.5% | [Finance Costs](index=14&type=section&id=Finance%20Costs) For the six months ended May 31, 2025, the Group's finance costs increased compared to the prior year, primarily comprising imputed interest expense on promissory notes and interest expense on lease liabilities Finance Costs (Six Months Ended May 31) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Imputed interest expense on promissory notes | 769 | 693 | +11.0% | | Interest expense on lease liabilities | 19 | 3 | +533.3% | | **Total** | **788** | **696** | **+13.2%** | [Income Tax Expense](index=14&type=section&id=Income%20Tax%20Expense) For the six months ended May 31, 2025 and 2024, the Group incurred no income tax expense, primarily because Hong Kong entities had sufficient tax losses carried forward or no assessable profits, while the Bermuda-registered entity was exempt from profits tax - No income tax expense for the period, as Hong Kong entities had **tax losses carried forward** or no assessable profits, and the Bermuda entity was exempt[27](index=27&type=chunk) [Dividends](index=14&type=section&id=Dividends) The Board of Directors does not recommend the payment of an interim dividend for the six months ended May 31, 2025, consistent with the prior year - The Board of Directors does not recommend an interim dividend for the six months ended May 31, 2025[28](index=28&type=chunk) [Loss Per Share](index=15&type=section&id=Loss%20Per%20Share) For the six months ended May 31, 2025, basic loss per share attributable to owners of the company significantly narrowed to 0.42 HK cents (compared to 1.09 HK cents in the prior year); diluted loss per share is not presented as there were no potentially dilutive ordinary shares outstanding during either period - Basic loss per share narrowed from **1.09 HK cents** to **0.42 HK cents**, with no dilutive impact[29](index=29&type=chunk)[30](index=30&type=chunk) [Trade and Other Receivables](index=15&type=section&id=Trade%20and%20Other%20Receivables) As of May 31, 2025, the Group's total trade and other receivables increased to HKD 10.597 million, with net trade receivables increasing and the largest portion being aged over 360 days, indicating a longer collection cycle for some receivables Trade and Other Receivables (As of May 31) | Indicator | May 31, 2025 (HKD thousands) | November 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Net trade receivables | 8,608 | 7,280 | +18.2% | | Prepayments | 1,132 | 1,597 | -29.2% | | Other receivables | 465 | 389 | +19.5% | | **Total** | **10,597** | **9,658** | **+9.7%** | - Among trade receivables, the largest portion is aged over **360 days**, amounting to **HKD 19,738 thousand** as of May 31, 2025[31](index=31&type=chunk) [Reserves](index=16&type=section&id=Reserves) The Group's unaudited reserve amounts and their movements for the current period and the prior year are presented in the condensed consolidated statement of changes in equity - Reserve amounts and their movements are presented in the consolidated statement of changes in equity[32](index=32&type=chunk) [Trade and Other Payables and Accrued Charges](index=16&type=section&id=Trade%20and%20Other%20Payables%20and%20Accrued%20Charges) As of May 31, 2025, the Group's trade payables significantly decreased, leading to a slight reduction in total trade and other payables and accrued charges, while the average credit period for suppliers remained between 60 and 180 days Trade and Other Payables and Accrued Charges (As of May 31) | Indicator | May 31, 2025 (HKD thousands) | November 30, 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 123 | 870 | -85.9% | | Accrued charges | 1,320 | 1,663 | -20.6% | | Other payables | 6,183 | 6,050 | +2.2% | | **Total** | **7,626** | **8,583** | **-11.2%** | [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) Management discusses the Group's financial performance for H1 2025, including reasons for revenue growth and narrowed losses, and elaborates on liquidity, financial resources, risk management, employee policies, and operational review of business segments with future outlook [Financial Review](index=17&type=section&id=Financial%20Review) For the six months ended May 31, 2025, the Group's revenue grew by 37.1%, and net loss significantly decreased by 63.1%, primarily due to improved net other income or losses and reduced software research and development, sales and marketing, and administrative expenses, with maintenance services revenue being a key driver and staff costs decreasing due to fewer employees - Revenue grew by **37.1%** to **HKD 17,611 thousand**, and net loss decreased by **63.1%** to **HKD 1,906 thousand**, primarily due to the net effect of improved net other income or losses and reduced software R&D, sales and marketing, and administrative expenses[35](index=35&type=chunk) - Maintenance services revenue contributed **HKD 10,077 thousand**, accounting for **57.2%** of total revenue, driving growth in line with Hong Kong's expanding IT services market[35](index=35&type=chunk) - Operating expenses decreased by **23.7%** to **HKD 4,476 thousand**, mainly due to reduced marketing expenses and sales commissions[36](index=36&type=chunk) - Staff costs (excluding directors' emoluments) decreased by **66.5%** to **HKD 2,383 thousand**, primarily due to a reduction in the number of employees[38](index=38&type=chunk) [Liquidity and Financial Resources](index=18&type=section&id=Liquidity%20and%20Financial%20Resources) The Group maintains a prudent treasury policy, allowing investments only in Hong Kong-listed equity securities, cash, and other short-term bank deposits; as of May 31, 2025, total promissory notes amounted to approximately HKD 15.5 million, and the gearing ratio increased, indicating higher leverage - The Group maintains a prudent treasury policy, investing only in **Hong Kong-listed equity securities**, cash, and other short-term bank deposits[39](index=39&type=chunk) - As of May 31, 2025, total promissory notes amounted to approximately **HKD 15,500 thousand**, representing unsecured, non-interest-bearing loans[39](index=39&type=chunk) - The gearing ratio increased from **0.57** in 2024 to **0.65** in 2025[39](index=39&type=chunk) [Pledge of Assets](index=18&type=section&id=Pledge%20of%20Assets) As of May 31, 2025, the Group had not pledged or charged any of its assets - As of May 31, 2025, the Group had **no assets pledged or charged**[40](index=40&type=chunk) [Foreign Exchange Fluctuation Risk and Related Hedging](index=18&type=section&id=Foreign%20Exchange%20Fluctuation%20Risk%20and%20Related%20Hedging) All of the Group's assets, liabilities, and transactions are denominated in HKD or CAD; the Group's policy is to allow operating entities to borrow local currency when needed to minimize currency risk, and no foreign currency hedging was undertaken during the period - Group assets, liabilities, and transactions are denominated in **HKD or CAD**, with a policy to borrow local currency to minimize risk, and **no foreign currency hedging** was undertaken[41](index=41&type=chunk)[42](index=42&type=chunk) [Treasury Policy](index=18&type=section&id=Treasury%20Policy) The Group's cash and bank deposits are denominated in HKD and CAD, with core business transactions primarily in HKD; as the Group considers its foreign exchange risk minimal, it does not use any derivative instruments to hedge foreign exchange risk - Core business transactions are primarily in **HKD**, foreign exchange risk is minimal, and **no derivative instruments** are used for hedging[43](index=43&type=chunk) [Contingent Liabilities](index=18&type=section&id=Contingent%20Liabilities) As of May 31, 2025, the Group had no material contingent liabilities - As of May 31, 2025, the Group had **no material contingent liabilities**[44](index=44&type=chunk) [Material Investments](index=18&type=section&id=Material%20Investments) For the three months ended May 31, 2025, the Group held no material investments - For the three months ended May 31, 2025, the Group held **no material investments**[45](index=45&type=chunk) [Significant Events](index=19&type=section&id=Significant%20Events) As of May 31, 2025, the Group had no material capital commitments and no future plans to engage in significant investments or acquire capital assets - As of May 31, 2025, the Group had **no material capital commitments** and no future plans for significant investments or capital asset acquisitions[46](index=46&type=chunk) [Employees and Remuneration Policy](index=19&type=section&id=Employees%20and%20Remuneration%20Policy) As of May 31, 2025, the Group employed 25 staff in Hong Kong, a decrease from the prior year; employee remuneration is determined by individual performance, work experience, and market salary levels, including basic salary, MPF, and medical insurance plans - As of May 31, 2025, the Group had **25 employees** (35 in 2024), with total staff costs of approximately **HKD 2,833 thousand**[47](index=47&type=chunk) [Pension Scheme](index=19&type=section&id=Pension%20Scheme) The Group participates in the Mandatory Provident Fund Scheme for all employees hired under the Hong Kong Employment Ordinance, contributing 5% of employees' relevant income, up to a monthly cap of HKD 30,000 - The Group participates in the **Mandatory Provident Fund Scheme** for Hong Kong employees, contributing **5%** of relevant income, up to a monthly cap of **HKD 30,000**[48](index=48&type=chunk) [Operational Review](index=19&type=section&id=Operational%20Review) For the six months ended May 31, 2025, the Group's revenue increased by 37.1%, primarily driven by contributions from computer software licensing and related services, maintenance services, fintech resource services, and professional services; the Group remains optimistic about the Hong Kong financial market outlook and plans to strengthen its strategy to seize new business opportunities - Group revenue increased by **37.1%** to **HKD 17,611 thousand**, primarily from computer software licensing and related services, maintenance services (**HKD 11,381 thousand**), fintech resource services (**HKD 5,144 thousand**), and professional services (**HKD 1,086 thousand**)[49](index=49&type=chunk) - The Group is optimistic about the Hong Kong financial market outlook and plans to strengthen strategic initiatives to create new business opportunities[50](index=50&type=chunk) [Financial Solutions Services](index=20&type=section&id=Financial%20Solutions%20Services) RegTech solutions and related services continue to yield positive results for the Group, despite increasing market competition; the Group actively addresses challenges and capitalizes on the growing demand for compliance in the financial industry by enhancing its service portfolio, including annual maintenance and other professional services, and marketing activities - RegTech solutions and related services continue to yield positive results, despite **increasing market competition**[51](index=51&type=chunk) - The Group enhances its service portfolio, including annual maintenance and other professional services, and marketing to capitalize on the growing demand for compliance in the financial industry[51](index=51&type=chunk) [Support Services](index=20&type=section&id=Support%20Services) The Group successfully expanded its support services market through the acquisition of Smart Talent and Global Platform Limited, offering IT professional secondment, recruitment, and other professional services; amidst growing market demand for technological efficiency and fintech talent, the support services segment achieved significant revenue growth, successfully renewing existing client contracts and securing new ones - The Group expanded support services through the acquisition of Smart Talent and Global Platform Limited, offering **IT professional secondment, recruitment, and other professional services**[52](index=52&type=chunk) - Support services segment revenue grew significantly to approximately **HKD 1,086 thousand** for the six months ended May 31, 2025, with successful renewal of existing client secondment contracts and new professional service contracts[52](index=52&type=chunk) [Corporate Governance and Equity Information](index=21&type=section&id=Corporate%20Governance%20and%20Equity%20Information) This section discloses the interests and short positions of directors and chief executives, and substantial shareholders in the company's shares, underlying shares, and debentures, along with the audit committee's composition, duties, and work, and the company's compliance with the code for securities transactions by directors and the corporate governance code [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=21&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures) As of May 31, 2025, none of the company's directors or chief executives held any long or short positions in the shares, underlying shares, or debentures of the company or its associated corporations that are required to be disclosed under the SFO or GEM Listing Rules - As of May 31, 2025, directors and chief executives held **no disclosable long or short positions** in the company's or its associated corporations' shares, underlying shares, or debentures[53](index=53&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk)[56](index=56&type=chunk)[57](index=57&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk) [Interests Discloseable Under the Securities and Futures Ordinance and Substantial Shareholders](index=23&type=section&id=Interests%20Discloseable%20Under%20the%20Securities%20and%20Futures%20Ordinance%20and%20Substantial%20Shareholders) As of May 31, 2025, substantial shareholders Bravo Merit Management Groups Limited and its beneficial owner Mr. Leung Wai Ming held a 74.81% long position in the company's shares; no other persons or substantial shareholders were recorded in the register as holding disclosable short positions in the company's shares or underlying shares - Bravo Merit Management Groups Limited and its beneficial owner Mr. Leung Wai Ming hold **355,942,790 ordinary shares**, representing **74.81%** of the issued share capital[61](index=61&type=chunk) - No other persons or substantial shareholders are recorded in the register as holding disclosable short positions in the company's shares or underlying shares[62](index=62&type=chunk)[63](index=63&type=chunk) [Audit Committee](index=23&type=section&id=Audit%20Committee) The company's audit committee comprises three independent non-executive directors, chaired by Mr. Chow Wai Hing, and is responsible for reviewing financial reporting, internal control systems, and the relationship with external auditors; during the period, the audit committee held two meetings, reviewed the Group's unaudited results for the six months ended May 31, 2025, and deemed them prepared in accordance with applicable accounting standards - The audit committee, chaired by Mr. Chow Wai Hing, consists of **three independent non-executive directors** and reviews financial reporting, internal controls, and external auditor relations[64](index=64&type=chunk)[65](index=65&type=chunk) - The audit committee reviewed the unaudited results for the six months ended May 31, 2025, and found them prepared in accordance with applicable accounting standards[65](index=65&type=chunk) [Code of Conduct Regarding Securities Transactions by Directors](index=24&type=section&id=Code%20of%20Conduct%20Regarding%20Securities%20Transactions%20by%20Directors) The company has adopted a code of conduct for directors' securities transactions that is no less exacting than the required standard; during the six months ended May 31, 2025, the company was not aware of any non-compliance by any director with this code - The company adopted a **code of conduct for directors' securities transactions** no less exacting than the required standard, with no non-compliance noted during the period[66](index=66&type=chunk) [Corporate Governance Code](index=24&type=section&id=Corporate%20Governance%20Code) The company is committed to maintaining high standards of corporate governance and has adopted the revised and amended provisions of the Corporate Governance Code set out in Appendix 15 to the GEM Listing Rules; no other non-compliance with the code was identified during the period, except for the frequency of financial reporting updates - The company adopted the **revised Corporate Governance Code** from Appendix 15 of the GEM Listing Rules, committed to high governance standards[67](index=67&type=chunk) [Financial Reporting](index=25&type=section&id=Financial%20Reporting) According to the Corporate Governance Code, management should provide monthly financial reporting updates to the Board; however, the company's management provides updates quarterly at regular Board meetings and provides timely updates on any significant changes to all Board members - Management provides financial reporting updates quarterly to the Board, not monthly, but provides timely updates on significant changes[68](index=68&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=25&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Listed%20Securities) During the six months ended May 31, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the six months ended May 31, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities[69](index=69&type=chunk) [By Order of the Board](index=25&type=section&id=By%20Order%20of%20the%20Board) This report was issued by Executive Director Mr. Wong Kam Chiu for and on behalf of the Board on July 31, 2025, and lists the names of the Board members - The report was issued by Executive Director Mr. Wong Kam Chiu on behalf of the Board on **July 31, 2025**, listing Board members[69](index=69&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，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 （於香港註冊成立的有限公司） （股份代號：3360） 截至二零二五年六月三十日止六個月中期業績公告 遠東宏信有限公司（「本公司」）董事局（「董事局」）謹此公布本公司及其附屬公司 （「本集團」）截至二零二五年六月三十日止六個月的未經審核中期業績，連同截至 二零二四年六月三十日止六個月的比較數字。本公告列載本公司二零二五年中期 報告全文，並符合香港聯合交易所有限公司證券上市規則有關中期業績初步公告 附載的資料之要求。 承董事局命 遠東宏信有限公司 主席、行政總裁及執行董事 孔繁星 香港，二零二五年八月一日 於本公告日期，本公司的執行董事為孔繁星先生（主席）、王明哲先生及曹健先 生；本公司非執行董事為陳樹民先生、衛濛濛女士、劉海峰先生、郭明鑑先生及 羅強先生；以及本公司獨立非執行董事為韓小京先生、劉嘉凌先生、葉偉明先生 及黃家輝先生。 | 企 目 業 信 錄 息 | 公 司 簡 介 | 業 績 概 覽 | 管 ...

GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交所上市的公司帶有較 高投資風險。有意投資的人士應了解投資於該等公司的潛在風險，並應經過審慎周詳的考慮後方作出 投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主板買賣之證券承受較大的市 場波動風險，同時無法保證在GEM買賣的證券會有高流通量的市場。 WLS Holdings Limited 滙隆控股有限公司* （於開曼群島註冊成立並於百慕達存續之有限公司） （股份代號：8021） 截至二零二五年四月三十日止年度業績公佈 香港聯合交易所有限公司（「聯交所」）GEM的特色 香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責，對其準確性或完整 性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何部分內容而產生或因依賴該等內容而引 致之任何損失承擔任何責任。 本公佈（滙隆控股有限公司（「本公司」或「滙隆」）各董事（「董事」）願共同及個別對此負全責）乃遵照 聯交所GEM證券上市規則（「GEM上市規則」）的規定而提供有關本公司的資料。各董事經作出一切合 理查詢後，確認就彼等所知及所信：(1) 本公佈所 ...

2025 Annual Report Annual Report 2025 2025 年 報 年報 聯交所GEM的特色 GEM的定位，乃為較其他於聯交所上市的公司帶有更高投資風險的中小型公司提供一個上市的市場。有意投資 者應瞭解投資於該等公司的潛在風險，並應經過審慎周詳考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，於GEM買賣的證券可能會承受較於聯交所主機板買賣的證券更高的市 場波動風險，同時無法保證於GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明 確表示，概不對因本報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。 本報告的資料乃遵照GEM上市規則而刊載，旨在提供有關本公司的資料；NIU Holdings Limited（前稱「飲食天王 （環球）控股有限公司」）（「本公司」）董事（「董事」）願就本報告的資料共同及個別地承擔全部責任。各董事在 作出一切合理查詢後，確認就其所知及所信，本報告所載資料在各重要方面均屬準確完備，並無誤導或欺詐成 分，且並無遺漏任何其他事項，足以令致本報告所載 ...

[Annual Results Announcement](index=2&type=section&id=Annual%20Results%20Announcement) The annual results announcement provides a comprehensive overview of the Group's financial performance and position for the year ended March 31, 2025 [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group's consolidated statement of profit or loss for the year ended March 31, 2025, shows revenue growth, a decline in gross profit, and a significant increase in profit for the year, primarily driven by fair value changes in financial assets | Indicator | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 104,274 | 100,981 | 3,293 | 3.3% | | Cost of Services | (79,755) | (67,667) | (12,088) | 17.9% | | Gross Profit | 24,519 | 33,314 | (8,795) | (26.4%) | | Other Income | 1,410 | 1,906 | (496) | (26.0%) | | Fair Value Changes of Financial Assets at Fair Value Through Profit or Loss | 77,700 | 18,307 | 59,393 | 324.4% | | Profit Before Tax | 64,013 | 3,584 | 60,429 | 1686.2% | | Profit for the Year Attributable to Owners of the Company | 64,506 | 3,718 | 60,788 | 1634.9% | | Basic and Diluted Earnings Per Share (HK cents) | 47.50 | 3.19 | 44.31 | 1389.0% | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2025, the Group's total assets and net assets significantly increased, mainly due to a substantial rise in financial assets at fair value through profit or loss | Indicator | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Non-current Assets | 112,230 | 38,604 | 73,626 | 190.7% | | Financial Assets at Fair Value Through Profit or Loss | 96,831 | 26,631 | 70,200 | 263.6% | | Current Assets | 131,189 | 116,377 | 14,812 | 12.7% | | Current Liabilities | 38,329 | 35,360 | 2,969 | 8.4% | | Net Current Assets | 92,860 | 81,017 | 11,843 | 14.6% | | Net Assets | 197,320 | 115,796 | 81,524 | 70.4% | [Consolidated Statement of Changes in Equity](index=5&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) For the year ended March 31, 2025, total equity attributable to owners of the Company significantly increased due to substantial profit for the year and capital increases from two share placements | Indicator | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Equity at Beginning of Period | 115,796 | 91,956 | 23,840 | 25.9% | | Profit for the Year | 64,506 | 3,718 | 60,788 | 1634.9% | | Placement of New Shares | 18,000 | 20,168 | (2,168) | (10.7%) | | Transaction Costs Attributable to Placement of New Shares | (1,000) | (248) | (752) | 303.2% | | Total Equity at End of Period | 197,320 | 115,796 | 81,524 | 70.4% | [Notes to the Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) These notes provide detailed information and explanations supporting the consolidated financial statements [General Information](index=6&type=section&id=General%20Information) NIU Holdings Limited, formerly King Of Catering (Global) Holdings Ltd., is an investment holding company listed on GEM since September 17, 2018, and officially changed its English name on June 5, 2025 - The company officially changed its English name from "King Of Catering (Global) Holdings Ltd." to "**NIU Holdings Limited**" on June 5, 2025, and removed its Chinese name[8](index=8&type=chunk) - The company is an investment holding company, with its shares listed on GEM of The Stock Exchange of Hong Kong Limited since September 17, 2018[9](index=9&type=chunk) [Basis of Preparation](index=6&type=section&id=Basis%20of%20Preparation) The consolidated financial statements are prepared in accordance with applicable Hong Kong Financial Reporting Standards, presented in HKD, and measured on a historical cost basis - The consolidated financial statements are prepared in accordance with all applicable Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants[10](index=10&type=chunk) - The consolidated financial statements are presented in **Hong Kong Dollars** and rounded to the nearest thousand, with HKD being the functional currency of the Company and its Hong Kong subsidiaries[11](index=11&type=chunk) - The measurement basis used in preparing the consolidated financial statements is the historical cost basis, except for derivative financial assets measured at fair value[11](index=11&type=chunk) [Adoption of New and Revised Hong Kong Financial Reporting Standards](index=7&type=section&id=Adoption%20of%20New%20and%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) The Group has adopted new and revised HKFRSs with no material impact on current or prior period financial performance, while assessing the potential significant impact of HKFRS 18 on financial statement presentation and disclosure - The adoption of revised Hong Kong Financial Reporting Standards and interpretations for the current year had no material impact on the Group's financial performance, position, or disclosures for the current and prior years[13](index=13&type=chunk) - HKFRS 18 will replace HKAS 1, introducing new requirements to enhance comparability, relevance, and transparency of financial performance, and will lead to significant changes in the structure of the statement of profit or loss, disclosure of management-defined performance measures, and disaggregation requirements[19](index=19&type=chunk) - The Company's directors are currently assessing the impact of applying HKFRS 18 on the presentation and disclosures in the consolidated financial statements[19](index=19&type=chunk) [Revenue and Segment Information](index=10&type=section&id=Revenue%20and%20Segment%20Information) The Group's primary business is providing structural and geotechnical engineering consultancy services, with IT equipment installation services introduced this year, and revenue mainly generated in Hong Kong from a single operating segment - The Group's principal businesses include providing comprehensive structural and geotechnical engineering consultancy services, equipment leasing services in Hong Kong, and IT equipment installation services[20](index=20&type=chunk) - For the years ended March 31, 2025 and 2024, the Group operated only a single operating and reportable segment, namely comprehensive structural and geotechnical engineering consultancy services[25](index=25&type=chunk) - For the years ended March 31, 2025 and 2024, no individual external customer accounted for **10% or more** of the Group's total revenue[28](index=28&type=chunk) [Disaggregation of Revenue](index=10&type=section&id=Disaggregation%20of%20Revenue) For the year ended March 31, 2025, the Group's revenue was **HKD 104.27 million**, primarily from engineering services for new property construction, with all revenue recognized over time | Revenue Source | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Construction of New Properties | 89,316 | 79,593 | 9,723 | 12.2% | | Renovation/Maintenance of Existing Properties | 7,369 | 9,693 | (2,324) | (24.0%) | | Others | 7,589 | 11,695 | (4,106) | (35.1%) | | **Total Revenue** | **104,274** | **100,981** | **3,293** | **3.3%** | - Revenue primarily refers to contract revenue from providing comprehensive structural and geotechnical engineering consultancy services, recognized over time as the Group constructs or renovates assets and transfers control to customers[22](index=22&type=chunk) [Revenue Expected to be Recognized in the Future](index=11&type=section&id=Revenue%20Expected%20to%20be%20Recognized%20in%20the%20Future) As of March 31, 2025, the Group's remaining performance obligations from existing customer contracts totaled approximately **HKD 125.01 million**, expected to be recognized over the next two years and beyond | Expected Recognition Time | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Within 1 year | 63,331 | 57,981 | 5,350 | 9.2% | | Within 1 to 2 years | 34,877 | 29,961 | 4,916 | 16.4% | | After 2 years | 26,802 | 19,163 | 7,639 | 39.9% | | **Total** | **125,010** | **107,105** | **17,905** | **16.7%** | [Segment Reporting and Geographical Information](index=12&type=section&id=Segment%20Reporting%20and%20Geographical%20Information) The Group primarily operates in Hong Kong, treating comprehensive structural and geotechnical engineering consultancy services as a single operating segment, with non-current assets mainly located in Hong Kong and Mainland China - For the years ended March 31, 2025 and 2024, the Group operated only a single operating and reportable segment (i.e., comprehensive structural and geotechnical engineering consultancy services)[25](index=25&type=chunk) | Region | Revenue from External Customers (2025, Thousand HKD) | Revenue from External Customers (2024, Thousand HKD) | Non-current Assets (2025, Thousand HKD) | Non-current Assets (2024, Thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong | 104,274 | 99,849 | 11,141 | 9,038 | | Mainland China | – | – | 515 | 950 | | Macau | – | 1,132 | – | – | | **Total** | **104,274** | **100,981** | **11,656** | **9,988** | [Other Income and Other Gains/(Losses) – Net](index=14&type=section&id=Other%20Income%20and%20Other%20Gains%2F(Losses)%20%E2%80%93%20Net) For the year ended March 31, 2025, the Group's net other income and other gains was **HKD 1.32 million**, a decrease from the prior year, primarily due to lower interest income | Indicator | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Other Income | 1,410 | 1,906 | (496) | (26.0%) | | Total Other Losses – Net | (91) | (216) | 125 | (57.9%) | | **Total Other Income and Other Gains – Net** | **1,319** | **1,690** | **(371)** | **(21.9%)** | [Finance Costs](index=14&type=section&id=Finance%20Costs) For the year ended March 31, 2025, the Group's finance costs were approximately **HKD 0.39 million**, mainly comprising interest on lease liabilities, remaining largely consistent with the prior year | Indicator | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Interest on Bank Overdrafts | 1 | – | 1 | N/A | | Interest on Lease Liabilities | 387 | 417 | (30) | (7.2%) | | **Total** | **388** | **417** | **(29)** | **(7.0%)** | [Profit Before Tax](index=15&type=section&id=Profit%20Before%20Tax) Profit before tax is primarily influenced by staff costs, depreciation, and R&D expenses; total staff costs for the year ended March 31, 2025, were **HKD 75.51 million**, with **HKD 64.09 million** included in cost of services | Indicator | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Staff Costs | 75,506 | 78,215 | (2,709) | (3.5%) | | Auditor's Remuneration | 730 | 720 | 10 | 1.4% | | Depreciation of Property, Plant and Equipment | 1,402 | 1,431 | (29) | (2.0%) | | Depreciation of Right-of-use Assets | 3,360 | 3,091 | 269 | 8.7% | | Research and Development Expenses | – | 500 | (500) | (100.0%) | [Income Tax Credit](index=16&type=section&id=Income%20Tax%20Credit) For the year ended March 31, 2025, the Group recorded an income tax credit of **HKD 0.49 million**, mainly due to deferred tax credits, with Hong Kong profits tax levied under a two-tiered system and Mainland China subsidiaries benefiting from preferential tax policies | Indicator | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Current Tax (Hong Kong Profits Tax) | 185 | – | 185 | N/A | | Deferred Tax Credit | (678) | (134) | (544) | 406.0% | | **Income Tax Credit** | **(493)** | **(134)** | **(359)** | **267.9%** | - A Hong Kong subsidiary of the Company is subject to a two-tiered profits tax system, with the first **HKD 2 million** taxed at **8.25%** and the remainder at **16.5%**[32](index=32&type=chunk) - Mainland China enterprise income tax is provisioned at a **25%** rate, with some subsidiaries qualifying for preferential tax policies for small and micro-enterprises[33](index=33&type=chunk) [Earnings Per Share](index=19&type=section&id=Earnings%20Per%20Share) For the year ended March 31, 2025, basic and diluted earnings per share attributable to owners of the Company significantly increased to **47.50 HK cents**, primarily due to higher profit for the year, with the weighted average number of ordinary shares retrospectively adjusted for share consolidation | Indicator | 2025 | 2024 (Restated) | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Profit for the Year Attributable to Owners of the Company (Thousand HKD) | 64,506 | 3,718 | 60,788 | 1634.9% | | Weighted Average Number of Ordinary Shares (Thousands) | 135,816 | 116,511 | 19,305 | 16.6% | | **Basic and Diluted Earnings Per Share (HK cents)** | **47.50** | **3.19** | **44.31** | **1389.0%** | - The weighted average number of ordinary shares for current and prior years has been retrospectively adjusted to reflect the share consolidation on June 9, 2025[35](index=35&type=chunk) [Income Tax in the Consolidated Statement of Financial Position](index=20&type=section&id=Income%20Tax%20in%20the%20Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2025, the Group's income tax payable was **HKD 0.19 million**, compared to a recoverable tax in the prior year; deferred tax assets increased to **HKD 1.50 million**, and deferred tax liabilities were eliminated | Indicator | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (Thousand HKD) | | :--- | :--- | :--- | :--- | | Tax Payable/(Recoverable) at End of Period | 185 | (1,066) | 1,251 | | Deferred Tax Assets Recognized in Consolidated Statement of Financial Position | 1,500 | 1,056 | 444 | | Deferred Tax Liabilities Recognized in Consolidated Statement of Financial Position | – | (234) | 234 | | **Net Deferred Tax** | **1,500** | **822** | **678** | [Trade and Other Receivables](index=21&type=section&id=Trade%20and%20Other%20Receivables) As of March 31, 2025, total trade and other receivables increased to **HKD 86.49 million**, primarily due to higher trade receivables; the Group closely monitors credit quality and has a policy for expected credit loss provisions | Indicator | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Trade Receivables (net of allowance for expected credit losses) | 48,099 | 36,568 | 11,531 | 31.5% | | Deposits, Prepayments and Other Receivables (net of allowance for expected credit losses) | 38,388 | 12,189 | 26,199 | 214.9% | | **Total Trade and Other Receivables** | **86,487** | **48,757** | **37,730** | **77.4%** | - The Group's management closely monitors the credit quality of trade receivables and assesses credit quality and sets credit limits before accepting new customers[40](index=40&type=chunk) - The Group has a policy for expected credit loss provisions, based on an assessment of account recoverability, aging analysis, and management judgment[40](index=40&type=chunk) [Trade and Other Payables](index=23&type=section&id=Trade%20and%20Other%20Payables) As of March 31, 2025, total trade and other payables increased to **HKD 9.75 million**, mainly due to higher accrued expenses and other payables, with an increase in long service payment provisions | Indicator | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (Thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Trade Payables | 1,171 | 1,495 | (324) | (21.7%) | | Provision for Annual Leave and Long Service Payments | 2,768 | 2,632 | 136 | 5.2% | | Accrued Expenses and Other Payables | 5,809 | 4,444 | 1,365 | 30.7% | | **Total Trade and Other Payables** | **9,748** | **8,571** | **1,177** | **13.7%** | - The provision for long service payments refers to the obligation to pay long service payments in accordance with the Hong Kong Employment Ordinance (Cap. 57)[42](index=42&type=chunk) [Capital](index=25&type=section&id=Capital) The Company's authorized share capital is **HKD 15.00 million**, with 1,382,000,000 ordinary shares issued as of March 31, 2025; share capital and share premium increased during the year through two share placements - The Company's authorized share capital is **HKD 15,000,000**, divided into **1,500,000,000 shares** of **HKD 0.01** each[44](index=44&type=chunk) - As of March 31, 2025, the number of issued ordinary shares was **1,382,000,000**[44](index=44&type=chunk) [Share Capital](index=25&type=section&id=Share%20Capital) Two share placements completed on January 31, 2024, and May 29, 2024, issued 80,000,000 and 150,000,000 new shares respectively, raising net proceeds of approximately **HKD 19.92 million** and **HKD 17.00 million** to increase share capital and share premium - A placement of **80,000,000 new shares** was completed on January 31, 2024, raising net proceeds of approximately **HKD 19.92 million**, increasing share capital by **HKD 800,000** and share premium by **HKD 19.12 million**[44](index=44&type=chunk) - A placement of **150,000,000 new shares** was completed on May 29, 2024, raising net proceeds of approximately **HKD 17.00 million**, increasing share capital by **HKD 1,500,000** and share premium by **HKD 15.50 million**, with proceeds to be used for developing food and beverage and IT business segments and general working capital[46](index=46&type=chunk) [Dividends](index=26&type=section&id=Dividends) The Company's directors did not recommend the payment of a final dividend for the year ended March 31, 2025 - The Company's directors did not recommend the payment of a final dividend for the year ended March 31, 2025 (2024: nil)[47](index=47&type=chunk) [Events After the Reporting Period](index=27&type=section&id=Events%20After%20the%20Reporting%20Period) Significant post-reporting period events include three share placements, a share consolidation, and the dilution of the Group's equity interest in OPS, which may impact the valuation of financial assets at fair value through profit or loss - A placement of up to **118,000,000 placing shares** was completed on May 30, 2025, with net proceeds of approximately **HKD 2.42 million**[48](index=48&type=chunk) - On June 9, 2025, the Company consolidated every **10 issued and unissued ordinary shares** of **HKD 0.01** each into **1 ordinary share** of **HKD 0.10**[49](index=49&type=chunk) - On June 9, 2025, the Group's equity interest in OPS was diluted from **15.22% to 2.56%**, which may affect the valuation of financial assets at fair value through profit or loss[50](index=50&type=chunk) [Management Discussion and Analysis](index=28&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's business performance, financial position, and future outlook [Business Review and Outlook](index=28&type=section&id=Business%20Review%20and%20Outlook) The Group, primarily an engineering consultancy, successfully introduced IT business, achieving revenue growth, and has rebranded to NIU Holdings Limited to reflect its diversified business strategy and future expansion plans - The Group is a construction engineering consultant specializing in comprehensive structural and geotechnical engineering design, and successfully introduced IT business in Hong Kong and the People's Republic of China during the current financial year[51](index=51&type=chunk) - For the year ended March 31, 2025, the Group's revenue increased by approximately **3.3%** to approximately **HKD 104.3 million**, mainly due to a slight increase in project volume and revenue contribution from structural and geotechnical engineering consulting services, as well as approximately **HKD 0.8 million** from IT solution services[51](index=51&type=chunk) - The Group changed its name to NIU Holdings Limited during the year, marking a new era for the Group to not only provide construction engineering consultancy services but also to actively explore new business segments, including the information technology industry[52](index=52&type=chunk) [Financial Review](index=29&type=section&id=Financial%20Review) The Group's revenue grew by 3.3%, but increased cost of services led to a 26.4% decline in gross profit; profit for the year surged by 1634.9%, primarily driven by **HKD 77.7 million** in fair value gains from financial assets at fair value through profit or loss - The Group's revenue increased by approximately **3.3%** from approximately **HKD 101.0 million** to approximately **HKD 104.3 million**[54](index=54&type=chunk) - Gross profit decreased by **26.4%** to approximately **HKD 24.5 million**, with the gross profit margin falling from **33.0% to 23.5%**, mainly due to a reduction in the number of smaller projects which typically have higher gross profit margins[56](index=56&type=chunk) - For the year ended March 31, 2025, the Group recorded a profit for the year of approximately **HKD 64.5 million**, primarily attributable to fair value changes of financial assets at fair value through profit or loss of approximately **HKD 77.7 million**[62](index=62&type=chunk) [Revenue](index=29&type=section&id=Revenue) Revenue increased by **3.3%** year-on-year to **HKD 104.3 million**, driven by an increase in new property construction projects, structural and geotechnical engineering consulting services, and approximately **HKD 0.8 million** from IT solution services - Revenue increased by approximately **HKD 3.3 million** or **3.3%** from approximately **HKD 101.0 million** for the year ended March 31, 2024, to approximately **HKD 104.3 million** for the year ended March 31, 2025[54](index=54&type=chunk) [Cost of Services](index=30&type=section&id=Cost%20of%20Services) Cost of services increased by **17.9%** year-on-year to **HKD 79.8 million**, mainly due to higher subcontracting consultant fees and increased staff costs and benefits for structural and geotechnical engineering consulting services - Cost of services increased by approximately **HKD 12.1 million** or **17.9%** from approximately **HKD 67.7 million** to approximately **HKD 79.8 million**[55](index=55&type=chunk) [Gross Profit](index=30&type=section&id=Gross%20Profit) Gross profit decreased by **26.4%** to **HKD 24.5 million**, with the gross profit margin falling from **33.0% to 23.5%**, primarily due to a reduction in the number of smaller, higher-margin projects - The Group's gross profit decreased by approximately **HKD 8.8 million** or **26.4%** to approximately **HKD 24.5 million**, with the gross profit margin decreasing from **33.0% to 23.5%**[56](index=56&type=chunk) [Other Income and Other Gains or Losses](index=30&type=section&id=Other%20Income%20and%20Other%20Gains%20or%20Losses) Net other income and other gains or losses decreased by approximately **HKD 0.4 million**, primarily due to a reduction in interest income - The Group's other income and other gains or losses were approximately **HKD 1.3 million** and **HKD 1.7 million** respectively, a decrease of approximately **HKD 0.4 million**, mainly due to a reduction in interest income[57](index=57&type=chunk) [Fair Value Changes of Financial Assets at Fair Value Through Profit or Loss](index=31&type=section&id=Fair%20Value%20Changes%20of%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) The Group recorded a gain of approximately **HKD 77.7 million** from fair value changes of financial assets at fair value through profit or loss, mainly due to an increase in the fair value of its OPS shares, driven by the market capitalization increase of OPS's subsidiary, Super X AI Technology Limited, after its NASDAQ listing - The Group recorded a gain of approximately **HKD 77.7 million** from fair value changes of financial assets at fair value through profit or loss, representing an increase in the fair value of the Group's shares in OPS as of March 31, 2025[58](index=58&type=chunk) [General and Administrative Expenses](index=31&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses decreased by **12.3%** year-on-year to **HKD 35.1 million**, primarily including staff costs, bonuses, training, and legal professional fees - The Group's general and administrative expenses decreased by approximately **HKD 4.9 million** or **12.3%** to approximately **HKD 35.1 million** from approximately **HKD 40.0 million**[59](index=59&type=chunk) [Finance Costs](index=31&type=section&id=Finance%20Costs) Finance costs were approximately **HKD 0.4 million**, mainly comprising interest expenses on lease liabilities and bank borrowings, consistent with the prior year - Finance costs for the years ended March 31, 2025 and 2024, were approximately **HKD 0.4 million**, consisting of interest expenses on lease liabilities and bank borrowings[60](index=60&type=chunk) [Income Tax Expense](index=31&type=section&id=Income%20Tax%20Expense) Income tax expense increased to approximately **HKD 0.5 million**, primarily due to a decrease in taxable profit of a key operating subsidiary of the Company - For the year ended March 31, 2025, the Group incurred income tax of approximately **HKD 0.5 million**, compared to an income tax expense of approximately **HKD 0.1 million** for the year ended March 31, 2024[61](index=61&type=chunk) [Profit for the Year](index=32&type=section&id=Profit%20for%20the%20Year) Profit for the year significantly increased to **HKD 64.5 million**, primarily attributable to fair value changes of financial assets at fair value through profit or loss of approximately **HKD 77.7 million** - For the year ended March 31, 2025, the Group recorded a profit for the year of approximately **HKD 64.5 million**, primarily attributable to fair value changes of financial assets at fair value through profit or loss of approximately **HKD 77.7 million**[62](index=62&type=chunk) [Liquidity and Financial Resources](index=32&type=section&id=Liquidity%20and%20Financial%20Resources) The Group primarily meets its liquidity needs through operating cash flow, with a current ratio improving from **3.3 times to 3.4 times**, indicating a sound financial position; the Group had no borrowings as of March 31, 2025 - The current ratio increased from approximately **3.3 times** as of March 31, 2024, to **3.4 times** as of March 31, 2025, mainly due to an increase in contract liabilities[63](index=63&type=chunk) - As of March 31, 2025, the Group had no borrowings, thus the gearing ratio is not applicable[63](index=63&type=chunk) - The Directors believe that the Group's financial position is sound and strong, and its liquidity is sufficient to meet funding requirements, supported by available bank and cash balances and bank credit facilities[63](index=63&type=chunk) [Treasury Policy](index=33&type=section&id=Treasury%20Policy) The Group adopts prudent financial management principles, maintaining a sound liquidity position and closely monitoring customer credit and liquidity risks - The Group adopts prudent financial management principles, maintaining a sound liquidity position and continuously assessing customers' creditworthiness and financial standing to mitigate credit risk[64](index=64&type=chunk) [Capital Structure](index=33&type=section&id=Capital%20Structure) The Company's shares were listed on GEM on September 17, 2018, with its capital structure primarily comprising ordinary shares; as of the announcement date, 1,445,450,000 ordinary shares were issued - The Company's shares were listed on GEM of The Stock Exchange of Hong Kong Limited on September 17, 2018, and there have been no changes in the Group's capital structure since then, with share capital comprising only ordinary shares[65](index=65&type=chunk) - As of the date of this announcement, after the completion of the placement of new shares on May 30, 2025, the number of issued ordinary shares was **1,445,450,000**[65](index=65&type=chunk) [Commitments, Material Investments and Contingent Liabilities](index=33&type=section&id=Commitments%2C%20Material%20Investments%20and%20Contingent%20Liabilities) As of March 31, 2025, the Group had no capital commitments, material investment plans, or significant contingent liabilities - As of March 31, 2025, the Group had no capital commitments (March 31, 2024: nil)[66](index=66&type=chunk) - As of March 31, 2025, the Group had no plans involving material investments and capital assets[67](index=67&type=chunk) - As of March 31, 2025, the Group had no significant contingent liabilities (March 31, 2024: nil)[69](index=69&type=chunk) [Exposure to Fluctuations in Exchange Rates](index=34&type=section&id=Exposure%20to%20Fluctuations%20in%20Exchange%20Rates) The Group's business primarily transacts in HKD, and bank balances are denominated in HKD, leading directors to believe that foreign exchange exposure is minimal, with no hedging contracts in place - The Group's revenue-generating business primarily transacts in **Hong Kong Dollars**, and bank balances are mainly denominated in **Hong Kong Dollars**; the Directors believe that foreign exchange exposure has a minimal impact on the Group, and no forward foreign exchange contracts or other hedging instruments for exchange rate fluctuations have been entered into[70](index=70&type=chunk) [Pledge of the Group's Assets](index=34&type=section&id=Pledge%20of%20the%20Group%27s%20Assets) As of March 31, 2025, the Group's bank facilities were secured by **HKD 2.1 million** in bank deposits and a corporate guarantee from the Company - As of March 31, 2025, the Company and its subsidiaries were granted general banking facilities secured by bank deposits of **HKD 2.1 million** and a corporate guarantee from the Company[71](index=71&type=chunk) [Events After the Reporting Period](index=34&type=section&id=Events%20After%20the%20Reporting%20Period) Subsequent to the reporting period, the Company completed a placement of new shares on May 30, 2025, issuing 63,450,000 new shares with net proceeds of approximately **HKD 2.4 million** - On May 30, 2025, the Company completed a placement of new shares under general mandate, issuing **63,450,000 shares** at **HKD 0.039 per share**, with net proceeds of approximately **HKD 2.4 million**[73](index=73&type=chunk) [Segment Information](index=35&type=section&id=Segment%20Information) The Group's segment information is comprehensively disclosed in Note 4 to the consolidated financial statements - The Group's segment information is disclosed in Note 4 to the consolidated financial statements[74](index=74&type=chunk) [Employees and Remuneration Policy](index=35&type=section&id=Employees%20and%20Remuneration%20Policy) As of March 31, 2025, the Group employed 161 individuals, with total staff costs of approximately **HKD 75.5 million**; remuneration policy is determined by market trends, operating results, and individual performance - As of March 31, 2025, the Group employed a total of **161 employees** (March 31, 2024: 164 employees)[75](index=75&type=chunk) - For the year ended March 31, 2025, the Group's staff costs (including directors' emoluments) were approximately **HKD 75.5 million**[75](index=75&type=chunk) - Remuneration is primarily determined by reference to market trends, the Group's operating results, and individual employees' performance, qualifications, and experience[75](index=75&type=chunk) [Use of Proceeds](index=36&type=section&id=Use%20of%20Proceeds) The Company has fully utilized the IPO net proceeds; net proceeds from three share placements, totaling **HKD 19.9 million**, **HKD 17.0 million**, and **HKD 2.4 million**, were primarily allocated to general working capital, new business development (including F&B, catering, entertainment, medical beauty, and IT), and engineering consulting services - The net proceeds of approximately **HKD 26.9 million** received by the Company from the share offer have been fully utilized[76](index=76&type=chunk) - Net proceeds from three placements of new shares amounted to approximately **HKD 19.9 million** (first), **HKD 17.0 million** (second), and **HKD 2.4 million** (third), respectively[76](index=76&type=chunk) - Proceeds from the first placement were used for general working capital and developing new businesses (food and beverage, catering, entertainment, and medical beauty); the second placement's proceeds were for general working capital and developing food and beverage and IT business segments; the third placement's proceeds are planned for general working capital, business development and equipment supply for engineering consulting services, and expansion and improvement of the IT business department, with a portion yet to be utilized[77](index=77&type=chunk) [Key Risks and Uncertainties](index=37&type=section&id=Key%20Risks%20and%20Uncertainties) The Group faces various risks, including reliance on professional personnel, deviations in project cost estimates, potential non-payment of service fees, and credit risk associated with trade receivables - The Group's business operations are highly dependent on professional personnel, especially the management team[78](index=78&type=chunk) - Estimated time and costs involved in projects may deviate from actual time and costs, leading to risks in tender price determination[78](index=78&type=chunk) - Service fees may not be fully paid if client projects are not completed as scheduled; the Group is exposed to credit risk from trade receivables and may face increased outstanding balances and longer trade receivable turnover days[82](index=82&type=chunk) [Other Information](index=38&type=section&id=Other%20Information) This section covers additional disclosures regarding the Company's governance, securities, and post-reporting events [Purchase, Sale or Redemption of the Company's Listed Securities](index=38&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the year, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the year, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[80](index=80&type=chunk) [Compliance with Corporate Governance Code](index=38&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company has complied with the Corporate Governance Code, with a deviation from code provision C.1.7 regarding not purchasing appropriate insurance for directors' potential legal actions, as the Board considers the Company's business and financial position stable with robust internal control systems - The Company has complied with the Corporate Governance Code, except for a deviation from code provision C.1.7 regarding not arranging insurance for directors' liabilities, as the Board considers the Company's current industry, business, and financial position to be relatively stable, and a robust internal control system has been established[81](index=81&type=chunk) [Audit Committee and Auditor's Scope of Work](index=39&type=section&id=Audit%20Committee%20and%20Auditor%27s%20Scope%20of%20Work) The Audit Committee has reviewed the Group's annual results, and the auditor, Evergreen (Hong Kong) CPA Limited, confirmed the preliminary results announcement data aligns with the draft consolidated financial statements, though their work was limited and not an audit or review - The Audit Committee has reviewed the Group's annual results for the year ended March 31, 2025, with the Company's management and external auditor[83](index=83&type=chunk) - The Company's auditor, Evergreen (Hong Kong) CPA Limited, has confirmed that the data in the preliminary results announcement for the year ended March 31, 2025, is consistent with the amounts in the Group's draft consolidated financial statements for the year, but their work was limited and does not constitute an audit, review, or other assurance engagement[84](index=84&type=chunk) [Change of Company Name and Stock Short Name](index=39&type=section&id=Change%20of%20Company%20Name%20and%20Stock%20Short%20Name) The Company officially changed its English name to "NIU Holdings Limited" and will change its stock short name effective August 7, 2025, while the stock code remains unchanged; the name change will not affect shareholders' rights or daily operations - The Company's English name has been changed from "King Of Catering (Global) Holdings Ltd." to "**NIU Holdings Limited**", and the dual foreign Chinese name is no longer used, effective June 19, 2025[85](index=85&type=chunk) - The English stock short name will change from "KINGOFCATER" to "**NIU HOLDINGS**", and the Chinese stock short name will change from "飲食天王（環球）" to "**NIU HOLDINGS**", effective from 9:00 a.m. on August 7, 2025, while the stock code remains "**8619**"[86](index=86&type=chunk) - The change of company name will not affect any rights of shareholders or the Company's daily business operations or its financial position[87](index=87&type=chunk) [Resumption of Trading and Revised Share Consolidation Timetable](index=40&type=section&id=Resumption%20of%20Trading%20and%20Revised%20Share%20Consolidation%20Timetable) The Company has applied to the Stock Exchange for the resumption of share trading on August 1, 2025, and has revised the share consolidation timetable - The Company has applied to The Stock Exchange for the resumption of trading in the Company's shares from 9:00 a.m. on Friday, August 1, 2025[89](index=89&type=chunk) - As the Company's shares have been suspended from trading on The Stock Exchange from 9:00 a.m. on Tuesday, July 1, 2025, the timetable for the share consolidation has been revised[89](index=89&type=chunk) [Board of Directors](index=42&type=section&id=Board%20of%20Directors) As of the announcement date, the Board of Directors includes executive directors Mr. Tsang Wing Ki, Mr. Man Kwok Hing, Ms. Leung Suet Yiu, and Mr. Leung Chun Yu; non-executive directors Mr. Yuen Chi Ping and Mr. Takeda Masahiro; and independent non-executive directors Ms. Siu Yuk Ming, Ms. Lung Wing Yee, and Mr. Leung Man Chun - As of the date of this announcement, the Board of Directors comprises executive directors Mr. Tsang Wing Ki, Mr. Man Kwok Hing, Ms. Leung Suet Yiu, and Mr. Leung Chun Yu; non-executive directors Mr. Yuen Chi Ping and Mr. Takeda Masahiro; and independent non-executive directors Ms. Siu Yuk Ming, Ms. Lung Wing Yee, and Mr. Leung Man Chun[92](index=92&type=chunk)