信义光能(00968) - 2025 - 中期业绩

Financial Highlights 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 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 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 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] - 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] Condensed Consolidated Statement of Changes in Equity 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 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] - 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] - 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] Notes to the Condensed Consolidated Financial Information 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 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] - The financial information is presented in RMB thousand and was approved for issue by the Board of Directors on August 1, 2025[14] 2 Basis of Preparation and Accounting Policies 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] - The presentation currency of the Group's consolidated financial statements has been changed from HKD to RMB, and comparative amounts have been restated[16] - The Group first adopted HKAS 21 and HKFRS 1 (Amendments) on January 1, 2025, with no material impact[18] - The Group is assessing the impact of new standards (amendments) issued but not yet effective, with preliminary assessment indicating no significant impact[19] 3 Revenue and Segment Information 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] 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] 4 Other Income 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 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 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 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 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] - 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] - 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] 9 Earnings Per Share 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] 10 Dividends 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] 11 Property, Plant and Equipment 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] 12 Right-of-use Assets 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 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 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] 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] 15 Prepayments, Deposits and Other Receivables 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] 16 Trade and Bills Payables and Other Payables 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] 17 Share Capital and Share Premium 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] 18 Borrowings 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][52] - The Company issued RMB 800 million of three-year fixed-rate bonds in June 2025, with an annual interest rate of 2.1%[52] - 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] 20 Transactions with Non-controlling Interests 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] - Following the disposal, the Company's indirect equity interest in Wuhu Xintu decreased from 100% to 51.62%, but control was not lost[54] - 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] 21 Related Party Transactions 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] 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] 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] 22 Fair Value Estimation 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] 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] - Supply-demand imbalance has squeezed profit margins across the entire industry chain, including the solar glass sector[67] - 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] 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 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 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] - China faces curtailment issues and changes in on-grid tariff policies, while the US supply chain is affected by trade measures[68] - India is emerging as a high-growth market, with rapid development in Southeast Asia, the Middle East, Africa, and Latin America[68][69] - Innovative projects such as solar-plus-storage hybrid systems, corporate power purchase agreements, and green hydrogen pilot projects are gaining recognition[69] Policy Changes and Uncertainty Drive China's PV Installation Rush 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] - 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] - 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] - 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] Supply-Demand Imbalance and Technological Shifts in the Solar Industry Chain 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] - Industry associations are promoting stricter quality standards and capacity discipline to curb vicious price competition[73] - 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] Adhering to Strategy and Production Diversification for Competitive Advantage 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] - It adopts a dynamic inventory management system to maintain appropriate inventory levels and implements selective customer collaboration and stricter credit management policies[74][75] - Through strategic capacity planning and targeted overseas expansion (new solar glass production facilities in Indonesia), the Group enhances its resilience against market fluctuations[75] - 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] Prudent Expansion of Solar Farm Business, Flexible Response to Market Changes 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] - 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] - The disposal of a 30 MW solar farm project to Xinyi Energy was completed, helping to replenish working capital[76] - As of June 30, 2025, the Group's cumulative approved grid-connected capacity for solar farm projects was 6,245 MW[77] - 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] Financial Review 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 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] - 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] - 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] - As of June 30, 2025, the Group's uncollected tariff adjustment (subsidy) receivables amounted to RMB 5,342.5 million[86] Gross Profit 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] - 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] Other Income 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] Net Other Losses 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] Selling and Marketing Expenses 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] - The ratio of selling and marketing expenses to revenue increased from 0.4% to 0.7%[91] Administrative and Other Operating Expenses 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] - 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] - The ratio of administrative and other operating expenses to revenue decreased from 4.7% to 4.1%[92] Impairment Loss on Property, Plant and Equipment 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] Finance Costs 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] - Interest expenses of RMB 31.2 million were capitalized as costs of solar glass, solar farm, and polysilicon production facilities under construction[94] Share of Net Profit of Investments Accounted for Using the Equity Method 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] Income Tax Expense 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] - 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] EBITDA and Net Profit 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] Liquidity and Financial Resources 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] - 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] - 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] - Net cash used in investing activities decreased to RMB 1,054.6 million, reflecting a slower pace of capacity expansion[99] - 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] Business Outlook 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 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] - New electricity demand trends from electric vehicles, artificial intelligence, data centers, and green hydrogen production will drive solar demand[100] - 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] - The industry's long-term positive fundamentals remain strong, supported by technological advancements and the global energy transition trend[101] Solar Glass Market Outlook 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] - 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] - 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] - Given the dynamic market changes, price pressure may persist in the short term[102] - 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] - Two new solar glass production lines are under construction in Indonesia, expected to commence commercial production in the first quarter of 2026[103] Solar Farm Investment Outlook 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] - 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] - 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] Financing Strategy 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] - 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] Long-Term Strategy 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] - This aims to withstand current market volatility, consolidate competitive advantages, and create long-term economic value for shareholders[104] Other Information 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 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] - 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] Pledged Assets 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] Contingent Liabilities As of June 30, 2025, the Group had no significant contingent liabilities - The Group had no significant contingent liabilities[107] Material Acquisitions and Disposals of Subsidiaries 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] Treasury Policy and Foreign Exchange Fluctuation Risk 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] - The Group primarily manages currency risk through natural hedging, avoiding speculative foreign exchange activities[109] - Foreign currency bank loans have been converted into RMB-denominated debt through cross-currency swaps, further reducing exchange rate risk[109] Employees and Remuneration Policy 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] - Total staff costs (including directors' emoluments) for the first half of 2025 amounted to RMB 597.3 million[110] - The Group provides competitive remuneration benefits and discretionary bonuses based on employee performance and Group results[110] Share Option Scheme 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] - The share options are valid from March 28, 2025, to March 31, 2029, and are subject to vesting conditions[111] Events After the Reporting Period 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] - The future plans for these production lines are still under review[112] Interim Dividend and Closure of Register of Members 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] - 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] - The register of members will be closed from August 18 to August 20, 2025, with the record date being August 20, 2025[113] Purchase, Sale or Redemption of 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 - 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] Corporate Governance 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] - 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] Model Code for Securities Transactions 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