春城热力(01853) - 2025 - 中期业绩

Company Announcement Information This announcement presents Jilin Province Chuncheng Heat Power Co., Ltd.'s (stock code: 1853) unaudited interim results for the first half of 2025 - This announcement is the 2025 interim results announcement issued by Jilin Province Chuncheng Heat Power Co., Ltd. (stock code: 1853)[2] Financial Highlights The group's unaudited interim results for the six months ended June 30, 2025, prepared under PRC accounting standards, have been reviewed by the audit committee - The Group's unaudited interim results for the six months ended June 30, 2025, prepared in accordance with China Enterprise Accounting Standards, have been reviewed by the Audit Committee[4] Key Financial Indicators for H1 2025 | Indicator | 2025 H1 (RMB) | YoY Change | | :--- | :--- | :--- | | Revenue | 935.13 million | +3.14% | | Profit before tax | 143.64 million | -28.40% | | Net profit attributable to equity holders | 106.90 million | -27.84% | | Earnings per share | 0.23 | Decreased by 0.09 | Financial Statements This section provides detailed consolidated financial statements, including the balance sheet, income statement, and comprehensive income statement Consolidated Balance Sheet As of June 30, 2025, the Group's total assets and liabilities significantly decreased from year-end 2024, while shareholders' equity increased, reflecting asset structure adjustments and accumulated profits Key Consolidated Balance Sheet Data | Indicator | June 30, 2025 (RMB) | December 31, 2024 (RMB) | Change | | :--- | :--- | :--- | :--- | | Total current assets | 1,377,354,891.21 | 2,676,804,769.68 | -48.55% | | Total non-current assets | 1,090,760,220.90 | 1,069,031,309.98 | +2.03% | | Total Assets | 2,468,115,112.11 | 3,745,836,079.66 | -34.11% | | Total current liabilities | 1,202,935,543.39 | 2,578,974,059.36 | -53.36% | | Total non-current liabilities | 115,116,319.82 | 123,702,208.21 | -6.94% | | Total Liabilities | 1,318,051,863.21 | 2,702,676,267.57 | -51.10% | | Total equity attributable to parent company shareholders | 1,150,063,248.90 | 1,043,159,812.09 | +10.25% | | Total Shareholders' Equity | 1,150,063,248.90 | 1,043,159,812.09 | +10.25% | Consolidated Income Statement In H1 2025, the Group's total operating revenue increased year-on-year, but operating profit and net profit significantly declined due to increased operating costs, finance costs, and asset impairment losses Key Consolidated Income Statement Data (H1 2025 vs H1 2024) | Indicator | 2025 Jan-Jun (RMB) | 2024 Jan-Jun (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Total operating revenue | 935,134,299.91 | 906,629,256.98 | +3.14% | | Operating cost | 745,469,319.23 | 686,590,830.07 | +8.58% | | Finance costs | 9,397,905.71 | 1,720,984.50 | +446.07% | | Asset impairment losses | -2,382,244.28 | 21,627,705.85 | From gain to loss | | Operating profit | 143,641,144.97 | 200,682,399.11 | -28.43% | | Total profit | 143,635,744.05 | 200,617,153.89 | -28.40% | | Income tax expense | 36,732,307.24 | 52,475,162.44 | -30.00% | | Net profit | 106,903,436.81 | 148,141,991.45 | -27.84% | | Net profit attributable to owners of the parent company | 106,903,436.81 | 148,141,991.45 | -27.84% | Consolidated Statement of Comprehensive Income The Group's total comprehensive income for H1 2025 was RMB 106.90 million, consistent with net profit, with no other comprehensive income items Key Consolidated Statement of Comprehensive Income Data (H1 2025 vs H1 2024) | Indicator | 2025 Jan-Jun (RMB) | 2024 Jan-Jun (RMB) | | :--- | :--- | :--- | | Net profit | 106,903,436.81 | 148,141,991.45 | | Other comprehensive income, net of tax | – | – | | Total Comprehensive Income | 106,903,436.81 | 148,141,991.45 | | Total comprehensive income attributable to owners of the parent company | 106,903,436.81 | 148,141,991.45 | - There were no ordinary shares with potential dilutive effects issued in the current or prior period, thus diluted earnings per share are the same as basic earnings per share[23] Notes to Financial Information This section provides detailed notes on the Group's financial information, including company overview, accounting policies, segment information, and specific financial line items 1. Company Overview Jilin Province Chuncheng Heat Power Co., Ltd., established in China in 2017, primarily engages in heating, construction, maintenance, and design services, with Changchun Heating (Group) Co., Ltd. as its controlling shareholder - The Company was incorporated in the People's Republic of China on October 23, 2017, and is currently a joint stock company[13] - The Group's principal activities include heating (heating and heat transmission, connection fees, and heat transmission) and construction, maintenance, design, and other services[14] - The Company's controlling shareholder is Changchun Heating Group, wholly owned by the Changchun Municipal People's Government State-owned Assets Supervision and Administration Commission[14] 2. Significant Accounting Policies The Group's consolidated financial statements are primarily measured using the historical cost method and are consistent with the accounting policies and calculation methods of the previous year - The consolidated financial statements are measured at historical cost, except for certain financial instruments measured at fair value[15] - The accounting policies and calculation methods adopted for the consolidated financial statements for the six months ended June 30, 2025, are consistent with those followed in the preparation of the annual financial statements for the year ended December 31, 2024[15] 3. Revenue and Segment Information The Group reports financial information based on two operating segments: heating and construction, maintenance, and design services; in H1 2025, heating business revenue accounted for the vast majority, while construction, maintenance, and design services revenue was smaller but grew significantly 3.(1) Basis for Determining Reporting Segments and Accounting Policies - The Company determines two operating segments, heating and construction, maintenance, and design services, based on its internal organizational structure, management requirements, and internal reporting system[16] - Management separately manages the operating activities of each reporting segment and regularly evaluates their operating results to allocate resources and assess performance[16] 3.(2)(1) Financial Information of Reporting Segments Segment Assets, Liabilities, and Revenue (June 30, 2025) | Item | Heating (RMB) | Construction, Maintenance, and Design Services (RMB) | Total (RMB) | | :--- | :--- | :--- | :--- | | Segment assets | 2,210,700,559.64 | 257,414,552.47 | 2,468,115,112.11 | | Segment liabilities | 1,223,499,374.24 | 94,552,488.97 | 1,318,051,863.21 | | Reportable segment revenue (H1 2025) | 926,331,893.76 | 8,802,406.15 | 935,134,299.91 | | Reportable segment gross profit (H1 2025) | 191,116,646.50 | -1,451,665.82 | 189,664,980.68 | 3.(2)(2) Revenue and Other Business Income Revenue from Customer Contracts Details (H1 2025 vs H1 2024) | Item | 2025 Jan-Jun (RMB) | 2024 Jan-Jun (RMB) | | :--- | :--- | :--- | | Heating and heat transmission | 884,923,601.99 | 859,996,290.50 | | Connection fees | 35,108,205.62 | 33,624,881.16 | | Heat transmission | 6,300,086.15 | 6,702,695.84 | | Engineering construction | 5,710,502.31 | 1,895,403.15 | | Engineering maintenance | 6,902.00 | 2,541,378.58 | | Design services | 100,622.38 | 1,676,775.53 | | Other | 2,984,379.46 | 191,832.22 | | Total | 935,134,299.91 | 906,629,256.98 | 4. Administrative Expenses The Group's administrative expenses for H1 2025 were RMB 42.70 million, a slight decrease from the same period last year, primarily comprising labor costs and depreciation and amortization expenses Administrative Expenses (H1 2025 vs H1 2024) | Item | 2025 Jan-Jun (RMB) | 2024 Jan-Jun (RMB) | | :--- | :--- | :--- | | Administrative expenses | 42,703,122.46 | 43,227,227.39 | - Administrative expenses primarily consist of labor costs, depreciation and amortization expenses, etc[19] 5. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) The Group's EBITDA for H1 2025 was RMB 213 million, a decrease from the same period last year, mainly affected by changes in net profit and interest expenses EBITDA (H1 2025 vs H1 2024) | Item | 2025 Jan-Jun (RMB) | 2024 Jan-Jun (RMB) | | :--- | :--- | :--- | | Net profit | 106,903,436.81 | 148,141,991.45 | | Income tax expense | 36,732,307.24 | 52,475,162.44 | | Depreciation of fixed assets | 70,529,485.38 | 66,888,092.64 | | Amortization of intangible assets | 757,872.55 | 668,972.13 | | Interest and investment income | 11,383,806.88 | 8,763,445.66 | | Interest expense | 9,397,905.71 | 1,720,984.50 | | EBITDA | 212,937,200.81 | 261,149,142.82 | 6. Dividends The Board does not recommend an interim dividend for H1 2025; the final dividend for FY2024 was approved but not yet distributed - The Board does not recommend the payment of any interim dividend to shareholders for the six months ended June 30, 2025[21] - The final dividend of RMB 0.065 per share (inclusive of tax) for the financial year ended December 31, 2024, was approved at the 2024 annual general meeting but had not been distributed as of June 30, 2025[22] 7. Earnings Per Share The Group's earnings per share for H1 2025 was RMB 0.23, a decrease from the same period last year, with basic and diluted EPS being identical Earnings Per Share (H1 2025 vs H1 2024) | Item | 2025 Jan-Jun | 2024 Jan-Jun | | :--- | :--- | :--- | | Net profit attributable to parent company | 106,903,436.81 | 148,141,991.45 | | Weighted average number of ordinary shares issued during the period | 466,700,000.00 | 466,700,000.00 | | Earnings Per Share | 0.23 | 0.32 | - As of June 30, 2025, and 2024, there were no ordinary shares with potential dilutive effects issued for the six months ended, thus diluted earnings per share are the same as basic earnings per share[23] 8. Income Tax Expense The Group's income tax expense for H1 2025 was RMB 36.73 million, a 30% decrease year-on-year, primarily due to a decline in total profit Income Tax Expense (H1 2025 vs H1 2024) | Item | 2025 Jan-Jun (RMB) | 2024 Jan-Jun (RMB) | | :--- | :--- | :--- | | Current income tax expense | 40,560,755.05 | 53,138,389.25 | | Deferred income tax expense | -3,828,447.81 | -663,226.81 | | Total | 36,732,307.24 | 52,475,162.44 | - The decrease in income tax expense was mainly due to the decrease in total profit for the current period[61] 9. Accounts Receivable The Group's total accounts receivable and allowance for doubtful accounts both increased, with significant growth in receivables aged 1-2 years and over 5 years, reflecting challenges in collection 9.(1) Accounts Receivable by Ageing Accounts Receivable Ageing Analysis (June 30, 2025 vs December 31, 2024) | Ageing | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Within 1 year | 94,805,548.81 | 240,784,530.94 | | 1 to 2 years | 120,088,965.53 | 50,660,189.88 | | 2 to 3 years | 40,011,168.25 | 16,463,637.23 | | 3 to 4 years | 14,507,308.95 | 18,091,660.10 | | 4 to 5 years | 16,273,134.02 | 8,163,363.23 | | Over 5 years | 24,521,871.23 | 17,834,792.54 | | Subtotal | 310,207,996.79 | 351,998,173.92 | | Less: Allowance for doubtful accounts | 65,755,050.07 | 59,544,145.46 | | Total | 244,452,946.72 | 292,454,028.46 | 9.(2) Disclosure by Method of Provision for Doubtful Accounts Provision for Doubtful Accounts by Credit Risk Characteristics Portfolio (June 30, 2025) | Category | Carrying Amount (RMB) | Proportion (%) | Allowance for Doubtful Accounts (RMB) | Provision Rate (%) | Carrying Value (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | By credit risk characteristics portfolio | 310,207,996.79 | 100.00 | 65,755,050.07 | 21.20 | 244,452,946.72 | | Of which: Ageing portfolio – Heating business | 98,191,505.71 | 31.65 | 11,046,958.40 | 11.25 | 87,144,547.31 | | Ageing portfolio – Basic heating fees | 36,422,356.51 | 11.74 | 10,174,084.70 | 27.93 | 26,248,271.81 | | Ageing portfolio – Engineering business | 60,256,061.91 | 19.42 | 28,149,415.16 | 46.72 | 32,106,646.75 | | Related party portfolio | 115,338,072.66 | 37.19 | 16,384,591.81 | 14.21 | 98,953,480.85 | 9.(3) Provision for Doubtful Accounts by Credit Risk Characteristics Portfolio - The provision rates for doubtful accounts for ageing portfolios in heating business, basic heating fees, and engineering business increase with ageing, with a 100% provision rate for receivables over 5 years[30][31][32] 10. Accounts Payable The Group's total accounts payable significantly decreased from year-end 2024, but accounts payable aged 1-2 years and over 3 years increased Accounts Payable Ageing Analysis (June 30, 2025 vs December 31, 2024) | Ageing | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Within 1 year | 17,652,359.36 | 228,146,149.72 | | 1 – 2 years | 33,790,937.76 | 14,745,559.16 | | 2 – 3 years | 4,350,737.23 | 39,714,923.61 | | Over 3 years | 36,609,707.51 | 5,726,739.83 | | Total | 92,403,741.86 | 288,333,372.32 | I. Business Review This section reviews the Group's operational performance, including heating business, construction, maintenance, design, safety management, and technology and R&D (I) Heating Business The Group's heating business achieved steady growth in H1 2025, with increases in heating area and customer numbers, and revenue growing by 2.89% year-on-year - As of June 30, 2025, the Group's heating area was 69.826 million square meters, a year-on-year increase of 3.54%[35] - The number of heating customers was 572,273 households, a year-on-year increase of 3.59%[35] - Heating business revenue was RMB 926.33 million, a year-on-year increase of 2.89%[35] Heating Customer Numbers and Revenue Contribution (June 30, 2025 vs June 30, 2024) | Customer Type | 2025 H1 Customer Count | % of Heating & Heat Transmission Revenue | 2024 H1 Customer Count | % of Heating & Heat Transmission Revenue | | :--- | :--- | :--- | :--- | :--- | | Residential users | 505,761 | 88.38% | 493,789 | 89.38% | | Non-residential users | 66,512 | 11.62% | 58,659 | 10.62% | | Total | 572,273 | 100% | 552,448 | 100% | - In H1 2025, the Group purchased a total of 12.41 million gigajoules of heat sources, of which 11.28 million gigajoules were used for heating production[38] - Approximately 1.13 million gigajoules of heat were resold, generating heat transmission fees of RMB 6.30 million[39] Purchased Heat Usage Data (H1 2025 vs H1 2024) | Item | 2025 Jan-Jun (Gigajoules) | 2024 Jan-Jun (Gigajoules) | | :--- | :--- | :--- | | Estimated heat purchase quota | 13,670,000 | 13,900,000 | | Transferred heat purchase quota | 1,128,955 | 1,152,499 | | Actual consumption | 11,282,780 | 11,557,948 | | Total heat purchased | 12,411,736 | 12,710,447 | | Utilization rate | 82.54% | 83.15% | (II) Construction, Maintenance, Design, and Other Services The Group's construction, maintenance, design, and other services revenue significantly grew by 39.60% in H1 2025, undertaking several key engineering projects - Revenue from this business was RMB 8.80 million, a year-on-year increase of 39.60%[41] - In the first half of the year, a total of 15 engineering construction projects, 2 engineering maintenance projects, and 9 design service projects were undertaken, including key projects such as the "Changchun Aviation Expo Park Pipeline Network Project"[41] (III) Safety Management The Group prioritized safety production in H1 2025, fully implementing government directives, and experienced no major safety accidents during the reporting period - The Group fully implemented the decisions and deployments of government departments at all levels regarding safety production and strictly fulfilled its safety production management responsibilities[42] - No major safety accidents occurred during the reporting period[42] (IV) Technology and R&D The Group made progress in environmental facility upgrades and equipment management digitalization, achieving ultra-low emission standards for boilers and independently developing an equipment ledger management system, obtaining two utility model patents - Completed SCR ultra-low emission modification tests for 15 boilers in 3 boiler rooms, all meeting national super emission standards, expected to significantly reduce particulate matter, sulfur dioxide, and nitrogen oxide emissions[43] - The independently developed "Equipment Ledger Management System" was fully optimized and put into use, achieving refined and convenient equipment management[44] - Obtained 2 utility model patents issued by the National Intellectual Property Administration during the reporting period[45] II. Analysis of Financial Position and Operating Results This section analyzes the Group's financial performance, covering revenue, other income, operating costs, gross profit, expenses, and liquidity (I) Revenue The Group's total revenue for H1 2025 was RMB 935.13 million, a 3.14% year-on-year increase, primarily driven by increased heating business revenue - For the six months ended June 30, 2025, the Group's revenue was RMB 935.13 million, a year-on-year increase of 3.14%[46] - The increase in revenue was mainly due to the increase in heating business revenue[46] Revenue Details by Segment (H1 2025 vs H1 2024) | Segment | 2025 (RMB million) | 2024 (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Heating | 926.33 | 900.32 | 2.89% | | Construction, maintenance, and design services | 8.80 | 6.31 | 39.60% | | Total | 935.13 | 906.63 | 3.14% | (II) Other Income and Net Other Gains The Group's other income and net other gains increased by 34.00% year-on-year in H1 2025, driven by higher government subsidies and bank deposit interest income - For the six months ended June 30, 2025, other income and net other gains were RMB 15.54 million, a year-on-year increase of 34.00%[49] - The increase was mainly due to increased government subsidies, such as heating subsidies (+47.20%), and increased interest income from bank deposits (+29.90%)[49] (III) Operating Costs The Group's operating costs increased by 8.58% year-on-year in H1 2025, primarily due to higher heat purchase costs, coal costs, depreciation and amortization, and utility fees in the heating business Operating Costs of Heating Business Operating Costs by Business Segment (H1 2025 vs H1 2024) | Segment | 2025 (RMB million) | 2024 (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Heating | 735.22 | 680.33 | 8.07% | | Construction, maintenance, and design services | 10.25 | 6.26 | 63.78% | | Total | 745.47 | 686.59 | 8.58% | Heating Sales Cost Details (H1 2025 vs H1 2024) | Item | 2025 (RMB million) | 2024 (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Heat purchase cost | 436.96 | 419.78 | 4.09% | | Coal | 46.13 | 20.77 | 122.10% | | Maintenance and repair | 6.90 | 6.86 | 0.47% | | Labor | 76.84 | 76.64 | 0.25% | | Depreciation and amortization | 69.06 | 64.12 | 7.70% | | Utilities | 49.38 | 44.79 | 10.25% | | Input tax transfer out | 29.75 | 28.79 | 3.32% | | Other | 20.21 | 18.58 | 8.79% | | Total | 735.22 | 680.33 | 8.07% | - The 4.09% increase in heat purchase cost was mainly due to increased heat source consumption from expanded heating area[54] - The 122.10% increase in coal cost was mainly due to the addition of new peak-shaving coal-fired boilers and increased coal consumption in the current period[55] - The 7.70% increase in depreciation and amortization cost was mainly due to new fixed asset investments in the prior and current periods[56] - The 10.25% increase in utility costs was mainly due to the continuous expansion of heating area[56] Construction, Maintenance, and Design Services Costs - Operating costs for construction, maintenance, and design services were RMB 10.25 million, a year-on-year increase of 63.78%, largely consistent with the increase in revenue from this business[57] (IV) Gross Profit and Gross Margin The Group's gross profit for H1 2025 was RMB 189.67 million, a 13.80% year-on-year decrease, primarily due to increased coal-fired heating proportion and rising costs from new peak-shaving coal-fired boilers - For the six months ended June 30, 2025, the Group's gross profit was RMB 189.67 million, a year-on-year decrease of 13.80%[58] - The decrease in gross profit was mainly due to the addition of new peak-shaving coal-fired boilers in the current period, leading to an increased proportion of coal-fired heating and higher costs[58] (V) Administrative Expenses The Group's administrative expenses for H1 2025 were RMB 42.70 million, remaining largely stable with a slight decrease of 1.21% compared to the same period last year - For the six months ended June 30, 2025, the Group's administrative expenses were RMB 42.70 million, a year-on-year decrease of 1.21%[59] (VI) Finance Costs The Group's finance costs significantly increased by 446.07% to RMB 9.40 million in H1 2025, primarily due to higher interest expenses from increased bank loans - For the six months ended June 30, 2025, the Group's finance costs were RMB 9.40 million, a year-on-year increase of 446.07%[60] - The increase was mainly due to an increase in bank loans in the current period compared to the prior period, leading to higher interest expenses[60] (VII) Income Tax Expense The Group's income tax expense for H1 2025 was RMB 36.73 million, a 30.00% year-on-year decrease, primarily due to a decline in total profit - For the six months ended June 30, 2025, the Group's income tax expense was RMB 36.73 million, a year-on-year decrease of 30.00%[61] - The decrease was mainly due to the decrease in total profit for the current period[61] (VIII) Profit for the Period The Group's profit for H1 2025 was RMB 106.90 million, a 27.84% year-on-year decrease, mainly impacted by lower gross profit and increased provision for doubtful accounts - For the six months ended June 30, 2025, the Group's profit for the period was RMB 106.90 million, a year-on-year decrease of 27.84%[62] - The decrease was mainly due to a RMB 30.07 million decrease in gross profit compared to the same period last year, and an additional RMB 23.84 million provision for doubtful accounts in the current period compared to the prior year[62] (IX) Profit Attributable to Owners of the Company The Group's profit attributable to owners of the Company for H1 2025 was RMB 106.90 million, a 27.84% year-on-year decrease, consistent with the profit for the period - For the six months ended June 30, 2025, the profit attributable to owners of the Company was RMB 106.90 million, a year-on-year decrease of 27.84%[63] - The profit attributable to owners of the Company is consistent with the profit for the period[63] (X) Liquidity and Capital Resources The Group's cash and cash equivalents decreased by 16.88% in H1 2025, primarily due to increased cost expenditures from new peak-shaving coal-fired boilers - As of June 30, 2025, the Group held cash and cash equivalents of RMB 460.36 million, a decrease of 16.88% compared to December 31, 2024[64] - The decrease was mainly due to the addition of new peak-shaving coal-fired boilers in the current period, leading to an increased proportion of coal-fired heating and higher cost expenditures[64] (XI) Capital Expenditures The Group's capital expenditures significantly increased by 106.17% in H1 2025, primarily due to the purchase of coal-fired boilers from the controlling shareholder - For the six months ended June 30, 2025, the Group's capital expenditures were RMB 124.03 million, a year-on-year increase of 106.17%[65] - The increase was mainly due to the Group's purchase of coal-fired boilers from the controlling shareholder in the current period, leading to increased capital expenditures[65] (XII) Capital Structure As of June 30, 2025, the Group's owners' equity increased, total interest-bearing bank borrowings amounted to RMB 548 million, and cash and cash equivalents exceeded total interest-bearing liabilities - As of June 30, 2025, the Group's owners' equity was RMB 1,150.06 million, an increase of RMB 106.90 million compared to December 31, 2024[66] - Total interest-bearing bank and other borrowings amounted to approximately RMB 548.00 million, with fixed interest rates ranging from 3.2% to 3.9% per annum[66] - As of June 30, 2025, the Group's cash and cash equivalents exceeded its total interest-bearing liabilities[66] (XIII) Significant Acquisitions and Disposals During the reporting period, the Group completed an acquisition of coal-fired boilers and other assets, and disclosed three proposed asset acquisitions related to the controlling shareholder group, all constituting connected and major transactions, but not yet completed - On January 15, 2025, the Company completed the acquisition of certain buildings, coal-fired boilers, and ancillary equipment from Changchun Heating Group for a consideration of RMB 82,886,461.00[67] - The Company proposes to acquire land, pipelines, machinery and equipment, and vehicles from Changchun Heating Group for a consideration of RMB 113,930,021.65 (Proposed Acquisition I)[68] - Yatai Heating, a wholly-owned subsidiary of the Company, proposes to acquire machinery and equipment from Changchun Heating Group for a consideration of RMB 16,457,865.00 (Proposed Acquisition II)[69] - The Company proposes to acquire machinery and equipment from Jilin Heating for a consideration of RMB 475,980.76 (Proposed Acquisition III)[70] - The aforementioned proposed acquisitions all constitute connected transactions, and together with the previous acquisition, constitute major transactions for the Company, none of which were completed as of the announcement date[70][71] (XIV) Pledge of Assets As of June 30, 2025, the Group had no pledged assets - As of June 30, 2025, the Group had no pledged assets[72] (XV) Contingent Liabilities As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[73] III. Outlook for H2 2025 This section outlines the Group's strategic priorities for the second half of 2025, focusing on core heating business, energy management, and project execution with safety (I) Focus on Core Heating Business, Strengthen Service Foundation The Group will continue to deepen its core heating business in H2, ensuring stable heating operations, optimizing user services, proactively stocking coal for winter peak shaving, and improving the emergency response system - Continue to deepen the core heating business, comprehensively ensure stable operation of heating production, and continuously optimize user service processes and quality based on user needs[74] - Plan ahead and scientifically deploy winter peak-shaving coal reserves to ensure sufficient and stable coal supply[74] - Further improve the heating emergency response system to enhance the ability to respond to sudden heating failures[74] (II) Strengthen Energy Management, Uncover Cost Reduction Potential The Group prioritizes energy management as key to improving efficiency, aiming to reduce energy consumption, enhance boiler efficiency, and achieve cost reduction through refined management, technological innovation, and real-time monitoring - Prioritize energy management as a key link to enhance corporate efficiency, effectively reduce energy consumption through refined management, technological innovation, and other means[75] - Strengthen real-time analysis and dynamic control of key indicators such as "water, electricity, heat, and coal"[75] - Increase efforts in equipment maintenance and technical transformation to improve boiler energy efficiency and achieve cost reduction targets[75] (III) Accelerate Project Progress, Strictly Adhere to Safety Bottom Line The Group will accelerate key engineering project construction, optimize construction organization, and strictly implement safety production responsibility systems, strengthening risk control to achieve a zero-accident goal - Intensify efforts to advance key engineering construction, optimize construction organization, and ensure all projects are implemented smoothly as planned[76] - Strictly implement the safety production responsibility system, fully implementing "dual responsibilities for one position"[76] - Strengthen risk-based hierarchical control and hidden danger investigation and rectification, establish a normalized and institutionalized safety inspection mechanism to ensure the achievement of a zero-accident goal[76] IV. Events After Reporting Period No significant events occurred after the reporting period other than those disclosed in this announcement - Except as disclosed in this announcement, there were no significant events after the reporting period[77] Other Information This section covers additional information including interim dividends, corporate governance compliance, securities transactions, interim results review, and articles of association amendments Interim Dividend The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[78] Compliance with Corporate Governance Code The Company generally complied with the Corporate Governance Code during the reporting period, with the General Manager position briefly vacant before a new appointment restored compliance - The Company has complied with the code provisions set out in Appendix C1, Part 2 of the Listing Rules, "Corporate Governance Code," during the reporting period, except for a brief vacancy in the General Manager position[79] - Since April 16, 2025, Mr. Zhang Liming has been appointed as the General Manager of the Company, and the Company has re-complied with code provision C.2.1 of the Corporate Governance Code[79] Purchase, Sale or Redemption of the Company's Listed Securities or Redeemable Securities For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any of its listed or redeemable securities, nor did it hold any treasury shares - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities or redeemable securities[80] - As of June 30, 2025, the Company did not hold any treasury shares[80] Review of Interim Results The Company's Audit Committee and independent auditor have reviewed the interim results for the six months ended June 30, 2025, and agreed with the accounting treatments adopted - The Audit Committee comprises three members, with Mr. Chen Shenghui, an independent non-executive director, serving as Chairman[81] - The Company's Audit Committee and its independent auditor have reviewed the Group's interim results for the six months ended June 30, 2025, and agreed with the accounting treatments adopted by the Company[81] Amendments to Articles of Association The Company's Articles of Association were revised on May 16, 2025, with the latest version available on the company and HKEX websites - The Company's Articles of Association were revised at the 2024 Annual General Meeting held on May 16, 2025[82] - The latest version of the Articles of Association is also available on the Company's website and the HKEX website[82] Definitions This section provides definitions for key terms used throughout the report, ensuring clarity and consistent understanding - This section provides definitions for key terms used in the report, including Articles of Association, Enterprise Accounting Standards, Board, China, Changchun Heating Group, the Company, Controlling Shareholder Group, Directors, the Group, Heating Service Area, Hong Kong, HKEX, Jilin Heating, Listing Rules, Reporting Period, RMB, Shares, Shareholders, Yatai Heating, and percentage symbol[83][86][84][85]