中联重科(01157) - 2025 - 中期业绩

Financial Highlights The company reported growth in total assets, revenue, and profit attributable to shareholders, alongside an increase in earnings per share and a proposed interim dividend Financial Summary | Metric | Six Months Ended June 30, 2025 / As of June 30, 2025 | Six Months Ended June 30, 2024 / As of December 31, 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total Assets | RMB 129.262 billion | RMB 123.712 billion | Increase RMB 5.550 billion | 4.49% | | Revenue | RMB 24.855 billion | RMB 24.535 billion | Increase RMB 0.320 billion | 1.30% | | Profit attributable to equity holders of the Company | RMB 2.753 billion | RMB 2.281 billion | Increase RMB 0.472 billion | 20.69% | | Earnings per share | RMB 0.32 yuan | RMB 0.27 yuan | Increase RMB 0.05 yuan | - | | Proposed interim dividend | RMB 0.2 yuan per share | - | - | - | Financial Performance The company's financial performance for the period shows overall growth in revenue and profit, with a notable increase in comprehensive income and a stable financial position - This interim financial report was prepared in accordance with International Accounting Standard 34 and the Hong Kong Stock Exchange Listing Rules, unaudited but reviewed by KPMG[3][4][11] Consolidated Statement of Comprehensive Income During the reporting period, the company achieved growth in both revenue and profit, with a significant increase in profit attributable to equity holders of the Company and a corresponding rise in basic and diluted earnings per share Consolidated Comprehensive Income | Metric | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Year-on-Year Change | Year-on-Year Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 24,855 | 24,535 | 320 | 1.30% | | Gross Profit | 6,996 | 6,946 | 50 | 0.72% | | Operating Profit | 2,833 | 2,951 | (118) | -4.00% | | Profit before tax | 3,284 | 2,857 | 427 | 14.95% | | Profit for the period | 2,888 | 2,535 | 353 | 13.92% | | Profit attributable to equity holders of the Company | 2,753 | 2,281 | 472 | 20.69% | | Basic earnings per share (RMB yuan) | 0.32 | 0.28 | 0.04 | 14.29% | | Diluted earnings per share (RMB yuan) | 0.32 | 0.27 | 0.05 | 18.52% | - Total comprehensive income for the period was RMB 2,913 million, a significant increase from RMB 2,020 million in the prior year period[8] Consolidated Statement of Financial Position As of June 30, 2025, the company's total assets increased from the end of 2024, primarily due to an increase in current assets, while current liabilities also rose, but net assets slightly decreased Consolidated Financial Position | Metric | As of June 30, 2025 (RMB million) | As of December 31, 2024 (RMB million) | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total non-current assets | 48,693 | 49,234 | (541) | -1.10% | | Total current assets | 80,503 | 74,478 | 6,025 | 8.09% | | Total assets | 129,196 | 123,712 | 5,484 | 4.43% | | Total current liabilities | 45,012 | 42,987 | 2,025 | 4.71% | | Total non-current liabilities | 24,844 | 20,923 | 3,921 | 18.74% | | Net assets | 59,340 | 59,802 | (462) | -0.77% | | Total equity attributable to equity holders of the Company | 57,107 | 57,101 | 6 | 0.01% | - Net current assets increased from RMB 31,491 million as of December 31, 2024, to RMB 35,491 million as of June 30, 2025[10] Notes to Financial Information This section provides detailed notes on the financial statements, covering accounting policies, revenue segmentation, profit and tax components, asset and liability breakdowns, and equity movements - This interim financial report, though unaudited, has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[11] 1 Basis of Preparation This interim financial report was prepared in accordance with the Hong Kong Stock Exchange Listing Rules and International Accounting Standard 34, approved by the audit committee, and did not adopt new standards not yet effective for the current period - The report was approved by the company's audit committee and authorized for publication on August 29, 2025[11] - The Group has not adopted any new standards or interpretations that are not yet effective for the current accounting period[12] 2 Revenue and Segment Reporting The company's revenue primarily derives from construction machinery and agricultural machinery, with construction machinery being the largest contributor; during the reporting period, revenue from outside Mainland China significantly increased, surpassing that from Mainland China Revenue by Source | Revenue Source | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Year-on-Year Change | Year-on-Year Change Rate | | :--- | :--- | :--- | :--- | :--- | | Construction Machinery | 22,582 | 20,039 | 2,543 | 12.69% | | Agricultural Machinery | 1,987 | 2,341 | (354) | -15.12% | | Financial Services | 231 | 207 | 24 | 11.59% | | Lease Income | 75 | 48 | 27 | 56.25% | | Total Revenue | 24,855 | 24,535 | 320 | 1.30% | Revenue by Geographical Location | Revenue by Geographical Location | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Year-on-Year Change | Year-on-Year Change Rate | | :--- | :--- | :--- | :--- | :--- | | Mainland China | 11,039 | 12,488 | (1,449) | -11.60% | | Outside Mainland China | 13,816 | 12,047 | 1,769 | 14.68% | - During the reporting period, revenue from aerial work platforms decreased by 34.46% year-on-year, while revenue from earthmoving machinery increased by 21.96% year-on-year[14] 3 Profit Before Tax During the reporting period, the company's profit before tax significantly increased, primarily driven by an improvement in net finance income (from net costs to net income) and an increase in share of profits from associates, despite higher selling and R&D expenses Profit Before Tax Components | Metric | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Net finance income/(costs) | 392 | (119) | 511 | | Selling and distribution expenses | (2,098) | (1,902) | (196) | | Research and development expenses | (1,412) | (1,306) | (106) | | Expected credit losses | (273) | (377) | 104 | | Share of profits less losses of associates | 59 | 25 | 34 | - Total staff costs slightly decreased, mainly due to a significant reduction in share incentive plan expenses[19] 4 Income Tax During the reporting period, the company's income tax expense increased, primarily due to deferred tax turning from a negative to a positive value, while PRC income tax expense decreased Income Tax Expense | Metric | Six Months Ended June 30, 2025 (RMB million) | Six Months Ended June 30, 2024 (RMB million) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Current tax - PRC income tax | 290 | 486 | (196) | | Deferred tax | 98 | (221) | 319 | | Income tax expense | 396 | 322 | 74 | 5 Earnings Per Share During the reporting period, both the company's basic and diluted earnings per share increased, with diluted earnings per share being equal to basic earnings per share due to the anti-dilutive effect of restricted A shares Earnings Per Share | Metric | Six Months Ended June 30, 2025 (RMB yuan) | Six Months Ended June 30, 2024 (RMB yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Basic earnings per share | 0.32 | 0.28 | 0.04 | | Diluted earnings per share | 0.32 | 0.27 | 0.05 | - The calculation of diluted earnings per share for 2025 excludes restricted A shares as they have an anti-dilutive effect, thus being equal to basic earnings per share[23] 6 Goodwill As of June 30, 2025, the company's goodwill balance increased due to the impact of exchange rate differences Goodwill Balance | Metric | As of June 30, 2025 (RMB million) | As of December 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Balance | 2,739 | 2,580 | 159 | - The increase in goodwill is primarily due to exchange rate differences, adding RMB 159 million[24] 7 Interests in Associates As of June 30, 2025, the company's total interests in associates slightly decreased, with the carrying amount of interest in Infore Environment Technology Group Co., Ltd. also slightly reduced Interests in Associates | Metric | As of June 30, 2025 (RMB million) | As of December 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Total interests in associates | 4,451 | 4,484 | (33) | | Infore Environment Technology Group Co., Ltd. | 3,182 | 3,209 | (27) | 8 Other Financial Assets As of June 30, 2025, the company's total other financial assets decreased, mainly due to a reduction in equity securities at fair value through other comprehensive income and private equity funds Other Financial Assets | Metric | As of June 30, 2025 (RMB million) | As of December 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Equity securities (FVTOCI) | 1,619 | 1,760 | (141) | | Private equity funds (FVTPL) | 158 | 224 | (66) | | Total | 1,809 | 2,017 | (208) | - During the reporting period, the company received RMB 10 million in dividends from equity securities investments and incurred a cumulative fair value change loss of RMB 2 million from the disposal of equity securities[26] 9 Trade and Other Receivables As of June 30, 2025, the company's total trade and other receivables significantly increased, primarily driven by growth in trade receivables, with the largest portion maturing within one year Trade and Other Receivables | Metric | As of June 30, 2025 (RMB million) | As of December 31, 2024 (RMB million) | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Trade receivables, net of allowance for doubtful debts | 35,320 | 31,108 | 4,212 | 13.54% | | Prepayment for equity investment | 1,628 | 0 | 1,628 | - | | Recoverable VAT | 2,446 | 2,329 | 117 | 5.02% | | Total (Current portion) | 38,879 | 32,400 | 6,479 | 20.00% | - During the reporting period, the company's non-recourse factored trade receivables significantly decreased to RMB 3.136 billion from RMB 5.940 billion in the prior year period[27] - As of the end of the reporting period, receivables due within 1 year accounted for 67% of the total (23,654/35,320)[28] 10 Finance Lease Receivables As of June 30, 2025, the company's total finance lease receivables decreased, mainly due to a reduction in gross investment and unearned finance income, while the proportion of overdue receivables also declined Finance Lease Receivables | Metric | As of June 30, 2025 (RMB million) | As of December 31, 2024 (RMB million) | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Gross investment | 7,003 | 8,217 | (1,214) | -14.77% | | Unearned finance income | (295) | (443) | 148 | -33.41% | | Total, net of allowance for doubtful debts | 6,205 | 7,163 | (958) | -13.37% | | Total overdue | 959 | 1,418 | (459) | -32.37% | - During the reporting period, the company's non-recourse factored finance lease receivables decreased to RMB 1.029 billion from RMB 1.788 billion in the prior year period[31] 11 Inventories As of June 30, 2025, the company's total inventories slightly increased, with growth in finished goods and work in progress, while raw materials remained stable Inventories Breakdown | Metric | As of June 30, 2025 (RMB million) | As of December 31, 2024 (RMB million) | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Raw materials | 5,486 | 5,413 | 73 | 1.35% | | Work in progress | 2,275 | 1,898 | 377 | 19.86% | | Finished goods | 13,192 | 12,818 | 374 | 2.92% | | Total inventories | 23,391 | 22,564 | 827 | 3.67% | 12 Financial Assets at Fair Value Through Profit or Loss As of June 30, 2025, the company's total financial assets at fair value through profit or loss slightly decreased, mainly due to a reduction in investment funds, but wealth management products and structured deposits significantly increased Financial Assets at Fair Value Through Profit or Loss | Metric | As of June 30, 2025 (RMB million) | As of December 31, 2024 (RMB million) | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Wealth management products and structured deposits | 207 | 45 | 162 | 360.00% | | Investment funds | 1,363 | 1,577 | (214) | -13.57% | | Total | 1,571 | 1,622 | (51) | -3.14% | - The company invests its surplus funds in bank wealth management products, structured deposits, and investment funds[34] 13 Trade and Other Payables As of June 30, 2025, the company's total trade and other payables significantly increased, primarily driven by growth in trade payables and prepayments for equity investments Trade and Other Payables | Metric | As of June 30, 2025 (RMB million) | As of December 31, 2024 (RMB million) | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Trade payables | 11,247 | 8,830 | 2,417 | 27.37% | | Electronic bills payable | 3,947 | 5,192 | (1,245) | -23.98% | | Bills payable | 8,174 | 7,883 | 291 | 3.69% | | Dividends payable | 2,529 | 0 | 2,529 | - | | Other accruals and other payables | 3,498 | 2,879 | 619 | 21.50% | | Total | 33,807 | 29,763 | 4,044 | 13.59% | - As of the end of the reporting period, trade payables and bills payable due within 1 month or on demand accounted for the highest proportion at 28.44%[36] 14 Share Capital, Reserves and Dividends During the reporting period, the company declared a cash dividend for 2024, continued its employee share ownership plan, and repurchased and cancelled H shares, resulting in slight changes to share capital - The Board of Directors proposes to declare an interim dividend of RMB 0.2 yuan per share for the six months ended June 30, 2025[2][75] - On June 26, 2025, a cash dividend of RMB 0.3 yuan per share for 2024, totaling RMB 2.595 billion, was approved for declaration, with a portion remaining unpaid as of June 30, 2025[37] - The second phase of the employee share ownership plan granted 423,956,766 restricted shares on September 28, 2023, with no shares unlocked during the reporting period[38][39] - During the reporting period, the company repurchased 18,746,800 H shares on the Hong Kong Stock Exchange for a total consideration of HKD 104 million (RMB 96 million), and cancelled 29,457,000 H shares in June 2025[40][76] Business Review and Outlook This section reviews the company's strategic initiatives, operational achievements, and future outlook, highlighting advancements in industrial development, global market expansion, digital transformation, and technological innovation - The company adheres to the core philosophy of "doing business with internet thinking and making products with ultimate thinking," focusing on high-quality development through "related diversification, globalization, and digitalization" as its three strategic transformations[41][68] Company Strategy and Performance Overview Zoomlion upholds the core philosophy of "doing business with internet thinking and making products with ultimate thinking," focusing on "related diversification, globalization, and digitalization" as its three strategic transformations, driving high-quality development through technological innovation, with both operating revenue and net profit attributable to the parent company increasing during the reporting period - The company's strategy focuses on three major transformations: "related diversification, globalization, and digitalization," driving high-quality development through technological innovation[41][68] Performance Overview | Metric | Six Months Ended June 30, 2025 | Year-on-Year Growth | | :--- | :--- | :--- | | Operating Revenue | RMB 24.855 billion | 1.30% | | Net profit attributable to the parent company | RMB 2.753 billion | 20.69% | 1. Accelerating Industrial Tiered Development The company accelerates the diversification of its industrial segments, with traditional advantageous industries solidifying market positions and enhancing competitiveness, while emerging industries rapidly expand to form new growth poles and achieve synergistic development - The company is building a synergistic and competitive development pattern between traditional advantageous industries and emerging industries, strengthening strategic execution[42] (1) Leading Products Maintain Stable Market Position - The domestic market positions of the three major product lines (concrete machinery, engineering hoisting machinery, and building hoisting machinery) are stable, with new energy mixer trucks and crawler crane products achieving double-digit growth[43] - Overseas business scale and market position continue to improve, with overall export sales of the three major product lines increasing by over 13% year-on-year[43] (2) Earthmoving Machinery Builds Advantages with Full-Scenario Product Matrix - Earthmoving machinery has built a full-scenario product matrix, with its market share in medium and large excavators ranking among the top in the domestic market[44] - The overseas market deepens its global layout, with export sales increasing by over 33% year-on-year, leading the industry in growth rate[44] (3) Aerial Work Platforms Lead Global High-End Market Development - Ultra-high straight boom products hold the number one global market share, with the 82-meter ultra-high straight boom product passing EU CE certification[45] - High-reach articulated boom product ZA32J holds the number one global market share, achieving large-scale exports to Europe, America, and the Asia-Pacific region[45] - Construction of the Hungarian factory is progressing efficiently, deepening local manufacturing competitiveness[45] (4) Agricultural Machinery Promotes Strategic Restructuring and Lean Development Transformation - The company is driving a systematic upgrade across the entire chain of products, R&D, market, production, and human resources, centered on the core development strategy of "high-end, international, and new energy"[46] - Wheat harvesters maintain a top two market share domestically, while tractor and rice harvester product lines achieve counter-trend growth during the industry adjustment period[46] (5) Mining Machinery Focuses on 'Green, Large-scale, and Intelligent' - Focusing on "green, large-scale, and intelligent" directions, the company builds high-end mining equipment for all processes, with production capacity increasing 3 times from the beginning of the year[47] - Overseas business has fully entered the global high-end mining market, with export sales increasing by over 29% year-on-year[47] (6) Embodied Intelligent Robot R&D Accelerates - Three new humanoid robots (one wheeled, two bipedal) have been developed, with dozens already deployed in factories, accelerating industrialization[48] - An embodied intelligent training ground with 120 workstations has been built, and an embodied intelligent operation center established, forming a closed-loop mechanism of "data collection – model training – application iteration"[48] (7) Emerging Businesses Flourish - Sales scale and profit of emergency equipment both reached historical highs, with a year-on-year increase of over 54%[49] - Basic construction continues to break through in both domestic and international markets, with export sales increasing by over 85% year-on-year[49] 2. Globalization Strategy Drives In-depth Breakthroughs in Global Markets The company firmly implements its globalization development strategy, deepening its "end-to-end, digital, and localized" overseas direct sales system, accelerating the localized operation layout of overseas R&D, production, supply, sales, and service, and promoting steady and rapid development of overseas business - The company firmly implements its unique globalization development strategy, continuously deepening its "end-to-end, digital, and localized" overseas direct sales system[50] - It accelerates the comprehensive localized operation layout of all business elements, including overseas R&D, manufacturing, supply chain, and sales service networks[50] (1) Diversified Market Layout Provides Strong Support for Steady Overseas Business Growth - Overseas revenue continued to grow in the first half of the year, with a year-on-year increase of over 14%[52] - The African region saw a year-on-year increase of over 179%, while the Middle East, Southeast Asia, and Australia/New Zealand maintained high growth, with emerging regional markets accounting for 39% of sales[52] (2) Deepening the 'Air Hub + Ground Force + Flying Force' End-to-End Model - An integrated management system has been built and improved, achieving flattened, process-oriented, standardized, and systematic management of overseas business[52] - Three lines of defense—marketing, risk control, and legal—have been established to ensure steady development of overseas business through differentiated risk control models and diversified collateral measures[52] - AI technology is utilized to optimize end-to-end business process efficiency, and a digital remote collaboration platform has been built and deepened in application[52] (3) Deepening Network Layout and Market Penetration - The core functions of first-tier air hubs are consolidated, and the expansion and construction of 55 second-tier outlets are fully promoted[51] - For traditional key markets, the air hub sinking strategy is accelerated, with 47 second-tier outlets deployed and surrounding city nodes developed, strengthening the "1 central warehouse + N satellite warehouses" star-shaped service structure[51] - Over 30 first-tier business air hubs and more than 430 second- and third-tier outlets have been established, with products covering over 170 countries and regions[53] (4) Continuously Advancing Overseas R&D and Manufacturing Base Expansion and Upgrades - The German Wilbert factory is being expanded and upgraded, transforming it into a comprehensive production base[53] - A new aerial work platform factory is being built in Hungary to promote in-depth business development through localized production[53] 3. Accelerating Digital Transformation The company fully accelerates digital transformation, innovating market operation models with internet thinking, reshaping management and business models with digital means, building a new digitally driven development pattern, and empowering efficient overseas operations and refined production, sales, and inventory management - The company is fully accelerating digital transformation, innovating market operation models with internet thinking, and reshaping management and business models[54] Digitalization Empowers Efficient Overseas Business Operations - Global marketing and service business process diagnostic tools and performance management platforms are fully applied, enabling real-time visualization of frontline team indicators and performance bonus incentives[54] - The overseas service business platform is optimized, and the spare parts order dispatch management system is deepened, covering 9 product lines and over 30 countries and regions, achieving precise control of service costs, tracking of missing parts, and uninterrupted service[54] Digitalization Empowers Refined Production, Sales, and Inventory Management - A digital monitoring system covering the entire chain from "opportunity insight to value realization" is built, integrating AI and other cutting-edge technologies to achieve efficient full-chain collaboration[54] - The operating model of "production based on demand, lean supply" is reshaped to respond to market demand with the optimal cost structure, reduce inventory scale, and improve capital turnover rate[54] 4. Intelligent Manufacturing Industrial Cluster Gradually Takes Shape The company firmly adheres to the "digital, intelligent, and green" development direction, accelerating the upgrade of high-end equipment intelligent manufacturing, with intelligent parks, smart factories, and smart production lines successively implemented, forming an industry-leading intelligent manufacturing industrial cluster - The company firmly adheres to the "digital, intelligent, and green" development direction, accelerating the upgrade of high-end equipment intelligent manufacturing[55] - Intelligent parks, smart factories, and smart production lines have been successively implemented, accelerating the formation of an industry-leading intelligent manufacturing industrial cluster[55] (1) Intelligent Manufacturing Industrial Cluster Continues to Grow and Develop - Centered on Zoomlion Smart Industrial City, 4 major mainframe smart factories and key component centers have been fully completed and put into operation[55] - Globally, 17 smart factories and over 370 smart production lines have been built and put into operation[55] (2) Rapid Conversion and Application of Advanced Intelligent Manufacturing Technology Research - Deep integration of artificial intelligence, industrial internet, intelligent manufacturing technology, and intelligent equipment is used to create digital, intelligent, and green smart production lines[55] - Nearly 250 key technologies have been broken through in areas such as quality improvement, cost reduction, and efficiency enhancement, and implemented on smart production lines, with over 160 items reaching industry-leading levels[55] (3) Full-Chain Digital Transformation of Manufacturing and Supply Chain Fully Accelerates - Deep integration of AI Agent, big data, digital twin, and other technologies is used to promote the deep deployment and global empowerment of the intelligent manufacturing platform[55] - Plan accuracy increased by 15%, production efficiency by 15%, and warehouse physical management efficiency by 20%[56] - Intelligent diagnosis of equipment faults is achieved based on AI and intelligent control technology, improving fault response efficiency by 40% and diagnosis accuracy by 18%[57] 5. Technological Innovation Drives Global Competitiveness The company adheres to technological innovation to drive high-quality development, launching 141 new products in overseas markets and obtaining international certifications for 338 products in the first half of the year, with the overseas market coverage of engineering machinery and mining machinery main products increasing by nearly 10%, and the world's largest 4,000-ton all-terrain crane achieving batch sales - In the first half of the year, 141 new products were launched in overseas markets, and 338 products passed international certifications[58] - The overseas market coverage of engineering machinery and mining machinery main products increased by nearly 10%, and overseas market share achieved rapid growth[58] - The world's largest 4,000-ton all-terrain crane has achieved batch sales, marking global leadership in ultra-large all-terrain crane technology[59] (1) 'Three Transformations' New Technologies Continuously Integrated, Product Competitiveness Significantly Enhanced - During the reporting period, 1,755 R&D projects were underway, with nearly 300 projects focusing on "three transformations" new technologies[59] - In terms of digitalization, 61 projects were carried out, with 19 items achieving batch integration, making significant breakthroughs in product operation and maintenance management and full lifecycle health management[59] - In terms of intelligence, 100 projects were carried out, with 22 items achieving batch integration, successfully creating an overall smart mining solution that reduces mining personnel by approximately 90% and improves operational efficiency by 10%[60] - In terms of greening, 78 projects were carried out, with 23 prototypes completing verification and 14 items achieving small-batch or batch integration, overcoming challenges in energy saving, emission reduction, and safety control[61] (2) New Energy Mainframes Fully Expanded, Key Components Industrialization Accelerated - In the first half of the year, 20 new energy mainframe products were launched, including the world's first pure electric port tire crane[62] - The electrification penetration rate of mixer trucks increased from 36.6% in 2024 to 74%, and that of wide-body vehicles increased from 2.8% to 33%[62] - The company rolled out a 6kWh high-rate battery pack for agricultural machinery, a 120kW compact high-efficiency flat-wire motor for agricultural machinery, and mining truck battery packs, while also rapidly advancing into the hydrogen energy sector by developing a new generation of hydrogen liquid-driven piston compressors and fuel cell power stations[62] (3) Accelerating Breakthroughs in Key Core Technologies and Products for Agricultural Machinery - In the first half of the year, 4 flagship products were launched for sale: N-series mechanical shift tractors, TK100MAX grain harvesters, PL80 rice harvesters, and 30-ton dryers[63] - The industry's first distributed motor direct drive technology was pioneered, launching the first DV4004 electric drive continuously variable transmission tractor, achieving 8% fuel savings under heavy load and 25% fuel savings in tillage and sowing operations[63] (4) Global Layout of Intellectual Property and Standards - 683 new patent applications were filed, and 555 patents were granted, including 172 invention patents[64] - A cumulative total of 5,974 patents for "three transformations" new technologies and 2,371 technical patents for the agricultural machinery sector were applied for; overseas PCT applications and national phase entries totaled 974[64] - The company successfully hosted the International Organization for Standardization Crane Technical Committee annual meeting, leading 4 international crane standard projects to substantial progress, and spearheading the drafting of multiple national, industry, and group standards[65] 6. Continuous Improvement in Business Management Quality and Efficiency During the reporting period, the company comprehensively strengthened risk control, enhanced supply chain system construction, promoted digital inventory management, deepened extreme service capabilities, and focused on empowering global human resource system construction to ensure high-quality development - Risk control is strengthened, establishing an end-to-end risk control system that combines prevention and control, enabling real-time monitoring of terminal overdue payments down to each customer, order, and equipment[66] - Supply chain system construction is strengthened, promoting centralized procurement and integration of bulk general materials, accelerating digital transformation, and improving procurement pricing efficiency[66] - Full-process inventory management system construction is strengthened, promoting digital inventory control projects to achieve real-time monitoring and abnormal early warning of production, sales, and inventory data, leading to a significant reduction in inventory scale[66] - Extreme service capability construction is deepened, promoting the air hub service system, achieving a service localization rate of 54%, and launching digital service tools[66] - Efforts are focused on empowering global human resource system construction, optimizing organizational structure, targeted talent acquisition, deepening talent development, and exploring global talent incentives[67] Financial Position Analysis This section provides a detailed analysis of the company's operating revenue, profit, cash flow, and capital expenditures, indicating that both operating revenue and net profit attributable to the parent company increased during the reporting period, operating cash flow significantly improved, investment activities were primarily for asset acquisition and equity prepayments, and financing activities mainly involved a net increase in bank borrowings - During the reporting period, the company's operating revenue was RMB 24.855 billion, a year-on-year increase of 1.30%; net profit attributable to the parent company was RMB 2.753 billion, a year-on-year increase of 20.69%[68] - Net cash generated from operating activities was RMB 1.603 billion, an increase of RMB 0.927 billion from the prior year period, mainly due to a decrease in the maturity and payment of trade bills[70] - Net cash used in investing activities was RMB 3.848 billion, primarily for the acquisition of property, plant and equipment, right-of-use assets, and intangible assets, as well as prepayments for equity interests in subsidiaries[71] - Net cash generated from financing activities was RMB 1.246 billion, mainly due to a net increase in bank and other borrowings of RMB 2.703 billion[72] Corporate Governance This section details the company's adherence to corporate governance principles and compliance with securities trading standards for directors and supervisors - The company has adopted and complied with Appendix C1 "Corporate Governance Code" and Appendix C3 "Model Code for Securities Transactions by Directors of Listed Issuers" of the Listing Rules[73][74] Corporate Governance Code The company has adopted and complied with Appendix C1 "Corporate Governance Code" of the Listing Rules, with the only deviation being the non-separation of the roles of Chairman and Chief Executive Officer, an arrangement the Board believes is beneficial for the company's strategic formulation and execution - The company has complied with all applicable provisions of the Corporate Governance Code, with the only exception being the non-separation of the roles of Chairman and Chief Executive Officer[73] - The Board believes that the arrangement of having a Chairman and Chief Executive Officer facilitates the effective formulation and execution of the company's business strategies[73] Compliance with the Model Code for Securities Transactions by Directors of Listed Issuers The company has adopted and complied with the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors and supervisors confirmed full compliance with the code during the reporting period - All directors and supervisors confirmed full compliance with the Model Code for Securities Transactions by Directors of Listed Issuers during the reporting period[74] Other Information This section provides additional corporate information, including dividend proposals, share repurchase activities, audit committee review, and details regarding the publication of interim results Dividends The Board of Directors proposes to declare an interim dividend for the six months ended June 30, 2025, subject to approval at the general meeting - The Board of Directors proposes to declare an interim dividend of RMB 0.2 yuan per share for the six months ended June 30, 2025, totaling RMB 1.73 billion, subject to approval at the general meeting[75] Purchase, Sale or Redemption of the Company's Listed Securities During the reporting period, the company repurchased and cancelled H shares on the Hong Kong Stock Exchange, with no other purchases, sales, or redemptions of its listed securities - During the reporting period, the company repurchased 18,746,800 H shares on the Hong Kong Stock Exchange for a total consideration of HKD 104 million, and completed the cancellation of 29,457,000 H shares on June 11, 2025[76] Review by the Audit Committee The company's Audit Committee has reviewed the Group's interim financial report for the six months ended June 30, 2025 - The company's Audit Committee has reviewed the Group's interim financial report for the six months ended June 30, 2025[77] Publication of Interim Results Announcement and Interim Report This results announcement has been published on the HKEX website and the company's website, and the interim report will be dispatched to H share holders and published on the company's and HKEX websites in due course - This results announcement has been published on the HKEX website (www.hkexnews.hk) and the company's website (www.zoomlion.com)[79](index=79&type=chunk) - The company will dispatch the 2025 interim report, containing all information required by the Listing Rules, to H share holders in due course[79] By Order of the Board This announcement is authorized for release by the Board of Directors and lists the company's executive, non-executive, and independent non-executive directors - This announcement is authorized for release by the Board of Directors of Zoomlion Heavy Industry Science and Technology Co., Ltd., with Dr. Zhan Chunxin as Chairman[80][81] - As of the date of this announcement, the company's executive director is Dr. Zhan Chunxin; non-executive directors are Mr. He Liu and Mr. Wang Xianping; independent non-executive directors are Mr. Zhang Chenghu, Mr. Huang Guobin, Mr. Wu Baohai, and Ms. Huang Jun[81]