兴业合金(00505) - 2025 - 中期业绩

Consolidated Statement of Profit or Loss This section details the company's financial performance, showing a decline in profit for the period and earnings per share Profit for the Period The company's profit for the period decreased by 24.8% to 106,165 thousand RMB, with basic and diluted earnings per share falling to 12.16 RMB cents Key Consolidated Statement of Profit or Loss Data (For the six months ended June 30) | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 4,388,782 | 3,593,506 | +22.1% | | Gross Profit | 378,040 | 430,096 | -12.1% | | Operating Profit | 132,723 | 195,912 | -32.3% | | Profit Before Tax | 126,788 | 183,663 | -30.9% | | Profit for the Period | 106,165 | 141,135 | -24.8% | | Attributable to Equity Holders of the Company | 106,128 | 140,937 | -24.7% | | Basic Earnings Per Share (RMB cents) | 12.16 | 15.97 | -23.8% | | Diluted Earnings Per Share (RMB cents) | 12.16 | 15.97 | -23.8% | Consolidated Statement of Profit or Loss and Other Comprehensive Income This section presents the company's total comprehensive income, reflecting the impact of profit for the period and other comprehensive income items Total Comprehensive Income for the Period Total comprehensive income for the period decreased by 25.9% to 104,714 thousand RMB, driven by lower profit and exchange rate fluctuations Total Comprehensive Income for the Period (For the six months ended June 30) | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Profit for the Period | 106,165 | 141,135 | | Exchange differences on translation of the Company's financial statements | (24,978) | 3,116 | | Exchange differences on translation of financial statements of subsidiaries outside Mainland China | 23,527 | (2,908) | | Other comprehensive income for the period | (1,451) | 208 | | Total comprehensive income for the period | 104,714 | 141,343 | Consolidated Statement of Financial Position This section provides a snapshot of the company's assets, liabilities, and equity, indicating growth in total assets and net current assets Overview of Assets and Liabilities As of June 30, 2025, total assets and liabilities increased, with net current assets reaching 1,269,977 thousand RMB and total equity at 2,278,974 thousand RMB Key Consolidated Statement of Financial Position Data (As of June 30) | Metric | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Non-current assets | 1,504,271 | 1,471,454 | | Property, plant and equipment | 1,376,426 | 1,304,270 | | Current assets | 4,885,098 | 4,202,613 | | Inventories | 1,831,574 | 1,548,355 | | Trade and other receivables | 1,186,612 | 1,019,967 | | Cash and cash equivalents | 700,273 | 681,211 | | Current liabilities | 3,615,121 | 3,007,210 | | Interest-bearing borrowings | 1,391,761 | 948,508 | | Trade and other payables | 2,186,072 | 2,011,397 | | Net current assets | 1,269,977 | 1,195,403 | | Net assets | 2,278,974 | 2,183,167 | | Total equity | 2,278,974 | 2,183,167 | Notes to the Unaudited Interim Financial Results This section provides detailed explanations and disclosures regarding the accounting policies, financial performance, and financial position presented in the interim financial statements 1 Reporting Entity and Background Information Incorporated in the Cayman Islands in 2007 and listed on HKEX, the Group's core business is high-precision copper strip manufacturing and trading, supplemented by network gaming since 2016 - The Company was incorporated in the Cayman Islands on July 19, 2007, and listed on the Main Board of the Hong Kong Stock Exchange on December 27 of the same year[7] - The Group's principal activities include manufacturing and selling high-precision copper strips, trading raw materials, providing processing services, and developing, publishing, and operating online games since August 2016[7] 2 Basis of Preparation Interim financial information is prepared under IAS 34, using consistent accounting policies from 2024, involving management judgments, estimates, and assumptions - The interim financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and adopts the same accounting policies as the 2024 annual financial statements[8] - The preparation of interim financial information requires management to make judgments, estimates, and assumptions, and actual results may differ from these estimates[8] 3 Changes in Accounting Policies The Group applied IFRS 21 amendments on exchange rate changes, but they had no significant impact on the interim financial report due to the absence of relevant foreign currency transactions - The Group has applied IFRS 21 "The Effects of Changes in Foreign Exchange Rates (Amendments) – Lack of Exchangeability"[9] - As the Group did not undertake foreign currency transactions where one currency is not exchangeable into another, these amendments had no significant impact on this interim financial report[9] 4 Revenue and Segment Reporting Group revenue is predominantly from copper products, with minimal gaming contribution, a diversified customer base, and no single customer exceeding 10% of total revenue, operating as a single segment Revenue by Major Product or Service Line (For the six months ended June 30) | Product/Service Line | 2025 (thousand RMB) | 2024 (thousand RMB) | Year-on-year Growth (%) | | :--- | :--- | :--- | :--- | | Sales of high-precision copper strips | 4,213,297 | 3,435,293 | +22.6% | | Processing service fees | 133,634 | 129,539 | +3.2% | | Trading of raw materials | 40,272 | 25,886 | +55.6% | | Total related to copper products | 4,387,203 | 3,590,718 | +22.2% | | Publishing and operating online games | 1,579 | 2,788 | -43.4% | | Total Revenue | 4,388,782 | 3,593,506 | +22.1% | Revenue by Customer Geographical Location (For the six months ended June 30) | Geographical Location | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Mainland China | 3,948,998 | 3,187,147 | | Taiwan, China | 73,638 | 106,194 | | Vietnam | 48,458 | 15,524 | | Singapore | 47,041 | 51,596 | | India | 46,386 | 31,764 | | United States of America | 19,638 | 7,079 | | Other regions | 204,623 | 194,102 | | Total Revenue | 4,388,782 | 3,593,506 | - The Group has a diversified customer base, with no single customer contributing more than 10% of total revenue[13] - The Group has only one operating segment, and segment assets and liabilities are not regularly reported to the chief operating decision maker[14] 5 Other Income and (Losses) – Net Other income and losses – net improved to (44,292) thousand RMB, primarily due to reduced net losses from metal futures contracts Other Income and (Losses) – Net (For the six months ended June 30) | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Credit loss allowance for trade and other receivables | (6,582) | (6,254) | | Gain/(loss) on disposal of property, plant and equipment | 634 | (491) | | Net loss on metal futures contracts | (37,405) | (60,458) | | Others | (939) | (248) | | Total | (44,292) | (67,451) | - Net loss on metal futures contracts decreased from 60,458 thousand RMB to 37,405 thousand RMB, which was the primary reason for the reduction in total losses[15] 6 Profit Before Tax Profit before tax reflects a reduction in net finance costs to (5,935) thousand RMB, driven by higher net foreign exchange gains and lower interest expenses Net Finance Costs (For the six months ended June 30) | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Interest income from bank deposits | 13,190 | 15,491 | | Net foreign exchange gain | 419 | — | | Gain on foreign exchange option contracts | 102 | — | | Finance income | 13,711 | 15,491 | | Interest expense on interest-bearing borrowings | (20,289) | (23,218) | | Less: Interest expense capitalized | 645 | 992 | | Net interest expense recognized in profit or loss | (19,646) | (22,236) | | Net foreign exchange loss | — | (5,391) | | Loss on forward foreign exchange contracts and swap contracts | — | (113) | | Finance costs | (19,646) | (27,740) | | Net finance costs | (5,935) | (12,249) | - Borrowing costs were capitalized at an annual rate of 3.2% (2024: 3.2% to 4.3%)[16] Items Included in/Deducted from Profit Before Tax (For the six months ended June 30) | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Cost of inventories | 4,008,463 | 3,161,144 | | Research and development expenses | 123,198 | 80,252 | | Depreciation (property, plant and equipment) | 64,719 | 50,922 | | Government grants | 30,611 | 26,331 | 7 Income Tax Income tax expense significantly decreased to 20.6 million RMB, with the effective tax rate falling from 23% to 16%, primarily due to increased R&D super deduction Income Tax Expense (For the six months ended June 30) | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Current tax | 25,088 | 45,483 | | Deferred tax | (4,465) | (2,955) | | Total | 20,623 | 42,528 | - The effective tax rate decreased from 23% in the prior period of 2024 to 16% in the current period of 2025[18] - The reduction in the effective tax rate was primarily due to an increase in the estimated super deduction for qualified research and development expenses[18] 8 Earnings Per Share Basic and diluted earnings per share decreased to 12.16 RMB cents, down from 15.97 RMB cents, primarily due to lower profit attributable to equity holders Earnings Per Share (For the six months ended June 30) | Metric | 2025 (RMB cents) | 2024 (RMB cents) | | :--- | :--- | :--- | | Basic Earnings Per Share | 12.16 | 15.97 | | Diluted Earnings Per Share | 12.16 | 15.97 | - Basic earnings per share are calculated based on profit attributable to ordinary equity holders of the Company of 106,128,000 RMB and the weighted average number of ordinary shares outstanding of 872,628,581 shares[19] - As of June 30, 2025, diluted earnings per share were the same as basic earnings per share due to the absence of potentially dilutive shares during the period[20] 9 Inventories Total inventories increased to 1,831,574 thousand RMB, driven by raw materials, with a 20,974 thousand RMB allowance and some inventories pledged for bank loans Inventory Composition (As of June 30) | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Raw materials | 398,011 | 140,722 | | Work in progress | 1,028,213 | 1,065,196 | | Finished goods | 404,972 | 342,081 | | Others | 378 | 356 | | Total | 1,831,574 | 1,548,355 | - An allowance of 20,974 thousand RMB (December 31, 2024: 20,450 thousand RMB) has been made for inventories where the net realizable value is below the carrying amount[21] - Certain inventories with a maximum aggregate carrying amount of 480,000 thousand RMB have been pledged as collateral for bank loans[21] 10 Trade and Other Receivables Trade and other receivables increased to 1,186,612 thousand RMB, primarily due to higher net trade receivables and bills, with discounted/endorsed bank acceptance bills still recognized Composition of Trade and Other Receivables (As of June 30) | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Net trade receivables after allowance for credit losses | 647,449 | 601,348 | | Bills receivable | 349,038 | 254,165 | | Deposits for metal futures contracts | 82,820 | 75,988 | | Recoverable value-added tax | 65,057 | 43,296 | | Prepayments | 34,648 | 40,796 | | Total | 1,186,612 | 1,019,967 | - The Group discounted or endorsed bank acceptance bills totaling 278,312 thousand RMB and continued to fully recognize the carrying amounts of these bills receivable and related settled trade payables[23] Ageing Analysis of Trade Receivables and Bills Receivable (As of June 30) | Ageing | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Within 3 months | 893,085 | 780,955 | | Over 3 months but less than 6 months | 99,790 | 69,025 | | Over 6 months but less than 1 year | 796 | 1,667 | | Over 1 year | 2,816 | 3,866 | | Total | 996,487 | 855,513 | 11 Interest-Bearing Borrowings Total interest-bearing borrowings rose to 1,822,692 thousand RMB, with short-term debt at 76.4%, and some loans secured by inventories and property, plant, and equipment Composition of Interest-Bearing Borrowings (As of June 30) | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Current | 1,391,761 | 948,508 | | Short-term secured bank loans | 124,648 | 155,042 | | Unsecured bank loans | 69,516 | 191,618 | | Bank advances under discounted bills | 1,078,468 | 495,514 | | Current portion of non-current secured bank loans | 119,129 | 106,334 | | Non-current | 430,931 | 417,659 | | Secured bank loans | 430,931 | 417,659 | | Total | 1,822,692 | 1,366,167 | Carrying Amount of Pledged Assets (As of June 30) | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Inventories | 480,000 | 480,000 | | Property, plant and equipment | 123,170 | 132,982 | | Right-of-use assets | 5,838 | 6,058 | | Total | 609,008 | 619,040 | - Unsecured bank loans bear interest at 2.45% to 2.80% per annum (December 31, 2024: 2.50% to 3.01%)[27] - Secured bank loans bear interest at 2.30% to 4.20% per annum (December 31, 2024: 2.70% to 4.30%)[29] 12 Trade and Other Payables Trade and other payables increased to 2,186,072 thousand RMB, driven by higher trade payables, while bills payable decreased Composition of Trade and Other Payables (As of June 30) | Item | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Trade payables | 1,548,719 | 1,275,642 | | Bills payable | 389,709 | 479,270 | | Accrued staff welfare | 65,175 | 88,101 | | Payables for purchase of property, plant and equipment | 70,474 | 61,599 | | Accruals and others | 50,244 | 63,786 | | Contract liabilities | 61,751 | 42,999 | | Total | 2,186,072 | 2,011,397 | Ageing Analysis of Trade Payables and Bills Payable (As of June 30) | Ageing | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Within 3 months | 1,791,171 | 1,295,337 | | Over 3 months but less than 6 months | 126,145 | 414,162 | | Over 6 months but less than 1 year | 8,435 | 34,405 | | Over 1 year | 12,677 | 11,008 | | Total | 1,938,428 | 1,754,912 | 13 Equity-Settled Share-Based Transactions The 2016 share award scheme aims to reward employees; as of June 30, 2025, 66,801 thousand RMB was injected into the trust, which purchased 69,767,000 shares, with 14,000,000 shares granted in December 2023 - The Company adopted a share award scheme on April 18, 2016, to recognize and reward eligible employees who have contributed to the Group's business growth[31] - As of June 30, 2025, the Company had cumulatively injected 66,801 thousand RMB into the trust, and the trustee had cumulatively purchased 69,767,000 shares of the Company[32] - Pursuant to a Board resolution on December 22, 2023, 14,000,000 ordinary shares under the share award scheme were granted free of charge to 3 directors and 7 employees, vesting in two tranches[33] Details of Shares Held Under Share Award Scheme (As of June 30) | Item | 2025 (Number of shares) | 2025 (thousand RMB) | 2024 (Number of shares) | 2024 (thousand RMB) | | :--- | :--- | :--- | :--- | :--- | | At January 1 | 23,862,000 | 23,153 | 19,200,000 | 18,853 | | Shares purchased during the period/year | 10,519,000 | 9,907 | 11,662,000 | 11,092 | | Shares vested during the period/year | — | — | (7,000,000) | (6,792) | | At June 30/December 31 | 34,381,000 | 33,060 | 23,862,000 | 23,153 | 14 Dividends The Board of Directors decided not to declare or pay an interim dividend for the six months ended June 30, 2025 - No dividends were declared or paid for the six months ended June 30, 2025, and the Board has decided not to pay any dividend for the interim period[35] Management Discussion and Analysis This section offers management's perspective on the Group's operational and financial performance, key business segments, market risks, and future outlook Copper Processing Business In H1 2025, the copper processing business saw increased production and sales amid volatile copper prices, but net profit declined due to rising costs and policy changes, prompting product structure optimization and enhanced management - In the first half of 2025, the global economy experienced a moderate recovery, though trade frictions and geopolitical conflicts continued to pose uncertainties[36] - The copper concentrate market saw weak supply and demand, with treatment and refining charges (TC) hitting a historical low; demand from new energy and photovoltaic installations weakened, while high-value copper materials were driven by high-end manufacturing (AI computing power, data centers)[36] - In the first half of 2025, the copper market was characterized by "tight supply and high prices," with copper prices rising first and then falling; the average price of copper in the domestic non-ferrous market was 77,800 RMB/ton (year-on-year +4.2%)[37][38] - Demand for red copper strips was strong, yellow copper strips were significantly impacted by the real estate sector, and high-end alloy copper strips saw significant growth driven by the electronics and artificial intelligence industries[38] - In the first half of 2025, the Group's copper strip business achieved a total production volume of 87,254 tons and a total sales volume of 84,171 tons, representing year-on-year increases of 13.7% and 13.6%, respectively[40] Copper Strip Business Sales Revenue and Net Profit (For the six months ended June 30) | Metric | 2025 (million RMB) | 2024 (million RMB) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Sales Revenue | 4,387.2 | 3,590.7 | +22.2% | | Copper Product Sales Revenue | 4,213.3 | 3,435.3 | +22.6% | | Processing Service Revenue | 133.6 | 129.5 | +3.2% | | Copper Trading Revenue | 40.3 | 25.9 | +55.6% | | Net Profit | 108.3 | 143.4 | -24.5% | - The decrease in net profit from the copper business was mainly due to: (1) increased labor costs; (2) increased depreciation costs; and (3) reduced gross profit from overseas sales due to the Chinese government's cancellation of export tax rebates for certain copper products[40] - The Group continues to adjust its product structure, increasing market share in domestic substitution areas such as automotive, electronic products, semiconductors, and new energy, while strengthening overseas market research[41] - The Group completed the preparation of its new five-year strategic plan, implementing a key task responsibility system and management methodology to improve departmental efficiency[41] - The Group engaged a global senior consulting firm for human resource reform, breaking through personnel management bottlenecks through organizational structure changes, recruitment system establishment, and compensation performance optimization[44] - The Group actively practices ESG principles, earning an EcoVadis Bronze rating and successfully breaking through overseas market entry barriers[44] - The Group is actively promoting energy cost reduction, saving costs through participation in electricity trading, leveraging energy storage advantages, and upgrading high-energy-consuming motors[44] - Looking ahead to the second half of the year, the Group expects to meet challenges, overcome difficulties, and achieve its targets, primarily benefiting from its specialized production line advantages, improved management, and team cohesion[42] Gaming Business Gaming business revenue totaled 1.6 million RMB with a 2.1 million RMB net loss, mainly due to declining existing game product revenue, with plans to boost new product revenue in H2 Gaming Business Financial Performance (For the six months ended June 30) | Metric | 2025 (million RMB) | 2024 (million RMB) | | :--- | :--- | :--- | | Total Revenue | 1.6 | 2.8 | | Net Loss | 2.1 | 2.3 | - The primary reason for the gaming business loss was the decrease in revenue from existing game products[43] - Looking ahead to the second half of the year, the gaming business will continue to attempt to increase new product revenue[43] Financial Review In H1 2025, total revenue grew 22.1% driven by copper, though copper gross margin fell to 8.6%; other income and net other losses improved, administrative expenses and net finance costs shifted, income tax decreased, and profit attributable to shareholders declined, while liquidity remained sufficient despite increased short-term debt - During the reporting period, the Group recorded total sales revenue of 4,388.8 million RMB, an increase of 22.1% compared to the prior period in 2024[45] Revenue Composition and Proportion (For the six months ended June 30) | Item | 2025 (million RMB) | % of Total Revenue | 2024 (million RMB) | % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Sales of high-precision copper strips | 4,213.3 | 96.0% | 3,435.3 | 95.7% | | Provision of processing services | 133.6 | 3.0% | 129.5 | 3.6% | | Trading of raw materials | 40.3 | 1.0% | 25.9 | 0.7% | | Online gaming business | 1.6 | 0.04% | 2.8 | 0.08% | - The overall gross profit margin for the copper business decreased from 12.0% in the prior period of 2024 to 8.6% in the reporting period, mainly due to reduced processing service revenue per ton, the cancellation of export tax rebate policies, and rising raw material prices[46] - Other income increased by 23.6 million RMB to 50.4 million RMB, primarily due to compensation received by a PRC subsidiary for equipment quality defects[47] - Net other losses decreased by 23.2 million RMB to 44.3 million RMB, mainly due to a reduction in net losses from metal futures contracts[48] - The ratio of distribution expenses to revenue increased from 0.7% to 0.9%, primarily due to higher freight charges[49] - Administrative expenses increased by 27.4% to 213.3 million RMB, attributable to increased research and development expenses[50] - Net finance costs decreased by 6.3 million RMB to 5.9 million RMB, mainly due to a reduction in net foreign exchange losses[51] - Income tax expense was 20.6 million RMB, with an effective tax rate of 16%, primarily due to an increase in the estimated super deduction for qualified research and development expenses[52] - Profit attributable to equity holders of the Company was 106.1 million RMB, a decrease of 34.8 million RMB compared to the prior period[53] - Net current assets increased to 1,270.0 million RMB, mainly due to an increase in restricted bank deposits and cash and cash equivalents[54] - The percentage of short-term interest-bearing borrowings to total interest-bearing borrowings was 76.4% (December 31, 2024: 69.4%)[55] - The Group has bank facilities of 3,043.1 million RMB and bank cash of 1,866.9 million RMB, and the Board is confident in its sufficient financial resources[55] - As of June 30, 2025, 37.0% of the Group's debt was secured (December 31, 2024: 49.7%)[56] - The gearing ratio (net debt divided by total capital) was 39.9% (December 31, 2024: 34.8%)[56] - Assets with an aggregate carrying amount of 609.0 million RMB were pledged as security for bank loans and facilities[57] - Capital expenditure was approximately 78.0 million RMB, primarily for the acquisition of property, plant and equipment[58] - Future capital commitments amounted to 114.0 million RMB, mainly for plant construction and capacity expansion in the copper processing business[59] - As of June 30, 2025, the Group had no significant contingent liabilities[60] Market Risks The Group manages price, interest rate, and foreign exchange risks through copper futures and foreign exchange option contracts, with interest rate risk primarily from bank borrowings and no interest rate swaps - The Group is exposed to the risk of fluctuations in raw material prices, primarily including cathode copper, alloy scraps, zinc, tin, and nickel[62] - The Group uses copper futures contracts on SHFE and LME to hedge against copper price fluctuations, recording a net loss of approximately 37.4 million RMB on metal futures contracts in H1 2025, a reduction from the prior period[62] - The Group's market risk from interest rate changes is primarily related to fluctuations in interest rates on bank borrowings, but it has not entered into any interest rate swaps to hedge this risk[63] - The Group's export sales and some raw material purchases are denominated in foreign currencies (primarily USD), creating foreign exchange exposure, which is hedged using foreign exchange option contracts[64] - During the reporting period, the Group recorded a net foreign exchange gain of 0.4 million RMB, compared to a net foreign exchange loss of 5.4 million RMB in the prior period of 2024[64] Employees As of June 30, 2025, the Group employed 1,868 individuals, providing competitive compensation and benefits, and fostering skill development through annual training - As of June 30, 2025, the Group employed a total of 1,868 employees (December 31, 2024: 1,757 employees)[65] - The Group provides competitive compensation and benefits, including salaries, pensions, medical insurance, and other social insurance[65] - The Group has an annual training program aimed at enhancing the basic skills of new employees and the skills of existing employees[65] Share Option Scheme and Share Award Scheme The Company maintains 2007 (terminated for grants) and 2016 Share Option Schemes, with no activity in the latter during the period, and a 2016 Share Award Scheme detailed in Note 13 - The 2007 Share Option Scheme was terminated on May 27, 2016, and no further share options will be granted under this scheme[66] - The 2016 Share Option Scheme was adopted on May 27, 2016, with no share options granted, exercised, lapsed, cancelled, or outstanding during the reporting period[66] - The Company's Board of Directors adopted a Share Award Scheme on April 18, 2016, with details provided in Note 13[66] Other Information This section provides additional disclosures on corporate governance, compliance, share transactions, dividends, and post-reporting period events Audit Committee The Audit Committee reviewed accounting policies and practices with management, and examined the interim results and report for the period - The Audit Committee has reviewed the accounting policies and practices adopted by the Group with management and discussed financial reporting matters[67] - The Audit Committee has reviewed the interim results and interim report for the review period prepared in accordance with relevant accounting standards[67] Compliance with Corporate Governance Code The Company consistently complied with the applicable code provisions of Part 2 of Appendix C1 to the HKEX Listing Rules' Corporate Governance Code during the reporting period - The Company has complied with the applicable code provisions set out in Part 2 of Appendix C1 to the Listing Rules' Corporate Governance Code throughout the reporting period[68] Compliance with Model Code for Securities Transactions All directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers for the six months ended June 30, 2025 - All directors confirmed their compliance with the Model Code for Securities Transactions by Directors of Listed Issuers for the six months ended June 30, 2025[69] Purchase, Sale or Redemption of the Company’s Listed Securities The share award scheme trustee purchased 10,519,000 Company shares for 9,907,000 RMB; otherwise, no other listed securities were purchased, sold, or redeemed by the Company or its subsidiaries - The trustee of the share award scheme purchased a total of 10,519,000 shares of the Company on the Stock Exchange for a total consideration of 9,907,000 RMB[70] - Save for the aforementioned share purchases under the share award scheme, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[70] Interim Dividend The Board of Directors will not declare an interim dividend for the six months ended June 30, 2025 - The Company's Board of Directors will not declare an interim dividend for the six months ended June 30, 2025[71] Events After Reporting Period No significant events occurred after the reporting period up to the date of this announcement - There have been no significant events after the reporting period up to the date of this announcement[72] Publication of 2025 Interim Results Announcement and Interim Report This results announcement is available on the Company's and HKEX websites, with the interim report to be published and dispatched to shareholders in due course - This results announcement has been published on the Company's website (www.xingyealloy.com) and the website of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk)[73](index=73&type=chunk) - The Company's 2025 interim report will be published on the Company's website and the website of Hong Kong Exchanges and Clearing Limited, and will be dispatched to the Company's shareholders in due course[73]