北京能源国际(00686) - 2025 - 中期财报

Corporate Information Board of Directors The company's Board of Directors comprises executive, non-executive, and independent non-executive directors, with various committees established - Board members include Executive Directors Mr. Zhang Ping (Chairman) and Mr. Lu Zhenwei, Non-executive Directors Mr. Liu Guoxi, Mr. Su Yongjian, Mr. Li Hao, Mr. Huang Jiao, Mr. Wang Cheng, and Independent Non-executive Directors Mr. Jin Xinbin, Mr. Zhu Jianbiao, Mr. Zeng Ming, and Mr. Liu Jingwei[3][4] - Committees include the Audit Committee (chaired by Mr. Liu Jingwei), Remuneration Committee (chaired by Mr. Liu Jingwei), Nomination Committee (chaired by Mr. Zhang Ping), Risk Control Committee (chaired by Mr. Zhang Ping), and Sustainable Development Committee (chaired by Mr. Zhang Ping)[3][4][5] Other Corporate Details The company discloses its auditor, legal advisors, share registrar, registered office, principal place of business, main banks, and website - The auditor is Grant Thornton Hong Kong Limited[7][8] - Legal advisors include Conyers Dill & Pearman in Bermuda, Jones Day in Hong Kong, and Beijing Yingke Law Firm and Beijing Zhongce Law Firm in mainland China[7][8] - Principal bankers include Agricultural Bank of China, Bank of China, CITIC Bank, and China Construction Bank[9][10] - The company's website is http://www.bjei.com[10](index=10&type=chunk) Management Discussion and Analysis Business Review The group aims to be an international clean energy operator, expanding its generation business and significantly increasing total electricity output - The group primarily engages in the development, investment, operation, and management of power stations and other clean energy projects, aiming to become the most respected international clean energy ecological investment and operation service provider[11][14] Diversification of Investment Locations and Portfolios The group actively expands its solar, wind, hydro, and energy storage businesses across 28 Chinese provinces and internationally - As of June 30, 2025, the group owned 187 solar power stations (December 31, 2024: 166), 39 wind power stations (December 31, 2024: 38), 26 hydro power stations (December 31, 2024: 26), and 3 energy storage power stations (December 31, 2024: 3)[12][15] - Total grid-connected installed capacity was approximately 13,692 MW (December 31, 2024: approximately 12,639 MW), an increase of approximately 8.3%[12][15] - Power stations are distributed across 28 provinces in China, with overseas projects in Australia and Vietnam[12][15] Other Clean Energy Projects The group holds development rights for approximately 5 GW of hydropower and focuses on optimizing its asset structure and diversifying energy supply - The group holds hydropower development rights with an estimated capacity of approximately 5 GW, where the company indirectly holds a 75% equity interest in the project company, and the remaining 25% is indirectly held by the People's Government of the Tibet Autonomous Region[17][20] - In the short term, the group will continue to focus on developing solar, wind, hydro, and energy storage businesses, improving its asset structure, with a long-term goal of supplementing diverse energy supplies[18][20] Electricity Generation Total electricity generation from the company's power stations significantly increased by 51.7% to approximately 11,514,751 MWh Total Electricity Generation by Power Generation Subsidiaries | Indicator | H1 2025 (MWh) | H1 2024 (MWh) | Change Rate | | :--- | :--- | :--- | :--- | | Total Electricity Generation | 11,514,751 | 7,590,356 | +51.7% | Summary of Power Generation Subsidiaries' Power Stations | Type | June 30, 2025 (MW) | June 30, 2024 (MW) | H1 2025 Electricity Generation (MWh) | H1 2024 Electricity Generation (MWh) | | :--- | :--- | :--- | :--- | :--- | | Solar | 7,958 | 6,391 | 4,863,871 | 4,220,057 | | Wind | 4,432 | 2,602 | 5,177,066 | 1,874,559 | | Hydro | 952 | 952 | 1,348,606 | 1,495,740 | | Energy Storage | 350 | 100 | 125,208 | – | | Total | 13,692 | 10,045 | 11,514,751 | 7,590,356 | - Energy storage power stations officially commenced production and operation in the second half of 2024, hence no relevant data for the first half of 2024[24][25] Financing The group diversified financing channels, reduced its weighted average annual interest rate, and secured funding for future business expansion - During the reporting period, the weighted average annual interest rate for bank and other borrowings was approximately 3.17%, a significant decrease from approximately 3.73% as of December 31, 2024[30][33] - The decrease in interest rates was primarily due to the refinancing of high-interest loans and a decline in benchmark rates such as LPR and SOFR[30][33] - The company completed the issuance of two tranches of perpetual medium-term notes in February and May 2025, with sizes of RMB 900 million and RMB 600 million respectively, fixed distribution rates of 2.47% and 2.38% per annum, with net proceeds used to repay domestic borrowings in China[31][33] - Jingneng Development secured private perpetual medium-term note funding of RMB 1,500 million (2024) and RMB 1,050 million (H1 2025) through investment agreements with China Life Investment and Allianz Insurance, used to supplement working capital and repay borrowings[32][34][35][39] Financial Review The group achieved slight net profit growth, increased revenue and EBITDA, but experienced a decline in average electricity prices Key Financial Indicators | Indicator | H1 2025 (RMB'million) | H1 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Net Profit | 293 | 292 | +0.34% | | Revenue | 4,086 | 3,272 | +24.87% | | EBITDA | 3,276 | 2,686 | +21.97% | - Revenue and EBITDA growth were primarily attributable to the expansion of grid-connected installed capacity from approximately 10,045 MW as of June 30, 2024, to approximately 13,692 MW as of June 30, 2025, an increase of approximately 36.3%, as well as efficient operation and management of power stations[37][41] - The average electricity price per kWh (excluding VAT) decreased from approximately RMB 0.43 as of June 30, 2024, to approximately RMB 0.35 for the current period, mainly due to the continuous increase in grid-connected installed capacity of grid-parity solar and wind power projects, whose electricity prices do not include subsidies[38][41] Finance Costs Total finance costs slightly decreased, primarily due to the refinancing of high-interest loans into lower-interest RMB loans Total Finance Costs | Indicator | H1 2025 (RMB'million) | H1 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Total Finance Costs | 1,099 | 1,105 | -0.54% | - The decrease in finance costs was mainly due to the gradual refinancing of certain high-interest loans with lower-interest RMB loans[43][47] Trade, Bills and Tariff Adjustment Receivables Total trade, bills, and tariff adjustment receivables significantly increased, mainly from government subsidies for renewable energy projects Details of Trade, Bills and Tariff Adjustment Receivables | Indicator | June 30, 2025 (RMB'million) | December 31, 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Trade and Bills Receivables | 881 | 590 | +49.32% | | Tariff Adjustment Project List | 9,021 | 6,906 | +30.63% | | Other Tariff Adjustments | 624 | 559 | +11.63% | | Total | 10,526 | 8,055 | +30.68% | - Tariff adjustment receivables primarily refer to central government subsidies for renewable energy projects collected from State Grid and Inner Mongolia Power based on power purchase agreements and government policies[49] Bank and Other Borrowings As of June 30, 2025, total bank and other borrowings were RMB 69,557 million, with RMB loans being the largest component Maturity and Currency Composition of Bank and Other Borrowings | Currency | Within 1 Year (RMB'million) | 2nd Year (RMB'million) | 3-5 Years (RMB'million) | 6-10 Years (RMB'million) | After 10 Years (RMB'million) | Total (RMB'million) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | RMB | 9,867 | 11,767 | 19,832 | 11,438 | 4,249 | 57,153 | | USD | 6,394 | 3,472 | – | – | – | 9,866 | | AUD | 1,890 | – | – | – | – | 1,890 | | HKD | 648 | – | – | – | – | 648 | | Total | 18,799 | 15,239 | 19,832 | 11,438 | 4,249 | 69,557 | - The group actively seeks financing/refinancing opportunities to reduce funding costs and improve liquidity[52] Key Performance Indicators Changes in key performance indicators reflect business expansion, with improved debt ratios and interest coverage despite a slight EBITDA margin decrease - The changes in various key performance indicators during the period primarily resulted from the expansion of the group's business scale[54][56] EBITDA Margin Ratio EBITDA margin decreased by approximately 2% to 80%, mainly due to business expansion and additional operating expenses EBITDA Margin Ratio | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | EBITDA Margin Ratio | 80% | 82% | -2% | Debt to EBITDA Ratio The debt to EBITDA ratio improved from 22.7 to 19.5, indicating enhanced debt repayment capability Debt to EBITDA Ratio | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Debt to EBITDA Ratio | 19.5 | 22.7 | -3.2 | Funds from Operations to Net Debt Ratio The funds from operations to net debt ratio increased from 2.7% to 3.5%, reflecting stronger debt servicing capacity from operating income Funds from Operations to Net Debt Ratio | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Funds from Operations to Net Debt Ratio | 3.5% | 2.7% | +0.8% | Interest Coverage Ratio The interest coverage ratio rose from 2.61 to 2.98, indicating an improved ability to cover interest expenses on interest-bearing debt Interest Coverage Ratio | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Interest Coverage Ratio | 2.98 | 2.61 | +0.37 | Liquidity, Financial Resources, Gearing Ratio and Capital Structure The group's current liabilities exceeded current assets, but the gearing ratio decreased due to perpetual medium-term note issuance - As of June 30, 2025, the group's current assets were approximately RMB 19,581 million, and current liabilities were approximately RMB 26,515 million[62][64] - The group formulates treasury policies to reduce funding costs and uses derivative financial instruments (cross-currency swaps) to hedge against foreign exchange and interest rate fluctuations[63][65] Capital Structure | Indicator | June 30, 2025 (RMB'million) | December 31, 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Bank and Other Borrowings | 69,542 | 68,582 | +1.40% | | Less: Cash Deposits | (5,694) | (5,604) | +1.61% | | Net Debt | 63,848 | 62,978 | +1.38% | | Total Equity | 25,460 | 22,660 | +12.36% | | Total Capital | 89,308 | 85,638 | +4.29% | | Gearing Ratio | 71.5% | 73.5% | -2.0% | - The decrease in the gearing ratio was primarily attributable to the increase in equity due to the issuance of perpetual medium-term notes[69][70] - The group will strive to reduce its gearing ratio through deleveraging, including co-investing in power stations with strategic business partners to reduce capital expenditure[69][70] Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures The group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period - During the period, the group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[74][79] Performance and Future Prospects for Significant Investments Held and Future Plans for Material Investments or Capital Assets As of June 30, 2025, the group held no significant investments but actively seeks opportunities to enhance future financial performance - As of June 30, 2025, the group did not hold any significant investments or capital assets[75][80] - The group will closely monitor market changes and actively seek promising investment opportunities to enhance future financial performance and profitability[75][80] Material Reliance on Key Customers The group's electricity sales heavily rely on Chinese state-owned power companies, with significant receivables from State Grid and Inner Mongolia Power - The major electricity sales customers in China are subsidiaries of State Grid Corporation of China and Inner Mongolia Power (Group) Co., Ltd[76][81] - As of June 30, 2025, receivables from State Grid and Inner Mongolia Power subsidiaries accounted for approximately 74.5% and 17.9% respectively of the group's total trade, bills, and tariff adjustment receivables[76][81] Charge on Assets Approximately 30.5% of the group's bank and other borrowings are secured by power modules, guarantee deposits, electricity sales rights, or subsidiary equity - As of June 30, 2025, approximately 30.5% of the group's bank and other borrowings were secured by pledges of certain power modules and equipment, guarantee deposits, rights to electricity sales of certain subsidiaries, and/or pledges of shares/equity interests in certain subsidiaries of the group[78][82] Employees and Remuneration Policies The group's full-time employee count increased to 1,918, with competitive remuneration and increased total employee benefit expenses Employee Count and Benefit Expenses | Indicator | June 30, 2025 | June 30, 2024 | Change Rate | | :--- | :--- | :--- | :--- | | Full-time Employee Count | 1,918 | 1,856 | +3.34% | | Total Employee Benefit Expenses (RMB'million) | 279 | 251 | +11.16% | - Employee remuneration is determined based on job nature, individual qualifications, performance, work experience, and market trends, with additional medical insurance, discretionary bonuses, training programs, and share option schemes provided[84][87] Exposure to Fluctuations in Exchange Rates and Related Hedges Operating primarily in mainland China and Hong Kong, the group faces minimal exchange rate risk, with management monitoring foreign currency exposure - The group primarily operates in mainland China and Hong Kong, with most transactions in mainland China settled in RMB, expecting minimal exchange rate fluctuation risk[85][88] - Most transactions in Hong Kong are settled in HKD and USD, with exchange rate fluctuation risk under the linked exchange rate system mainly arising from conversion to the presentation currency[85][88] - No other hedging instruments were used during the period, but management will strengthen monitoring of foreign currency risk when necessary[85][88] Contingent Liabilities As of June 30, 2025, the group had no material contingent liabilities other than those disclosed in the interim report - Except as stated and disclosed in this interim report, as of June 30, 2025, the group had no other material contingent liabilities[86][89] Material Events After the Date of Statement of Financial Position No other material events occurred after June 30, 2025, up to the date of the interim report, except as disclosed in Note 20 - Except as disclosed in Note 20 to the unaudited condensed consolidated interim financial information, the group had no other material events after June 30, 2025, up to the date of this interim report[90][94] Prospects The company will transition to a balanced asset operation model, explore light-asset development, and expand in hydro, gas turbine, and green hydrogen businesses - 2025 marks the final year of the "14th Five-Year Plan" and a critical year for the company's high-quality development, as the new energy industry enters an era of inventory competition where underlying asset quality becomes a core factor[91][95] - Strategically, the company will shift from heavy asset ownership to a balanced asset operation approach, prioritizing comprehensive project development costs and regional consumption capacity, exploring light-asset development and operation models to maximize power station asset value creation[93][95] - In business expansion, the company will deepen its hydropower business in Yunnan and Tibet, steadily advance gas turbine projects, transition integrated energy businesses towards light assets, and monitor the latest developments in green hydrogen business[97][100] - In operational management, the focus will be on quality improvement and efficiency enhancement, implementing comprehensive cost control, strictly controlling engineering costs, conducting post-project evaluations, improving regional benchmarking rankings, emphasizing electricity spot trading, and introducing equity financing to reduce funding costs[98][101] - The company aims to accelerate the construction of a clean energy industrial ecosystem that is "green-dominated, multi-energy complementary, and intelligently coordinated," contributing to global energy transition and climate change response[99][101] Interim Condensed Consolidated Statement of Profit or Loss Interim Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, net profit slightly increased, revenue and EBITDA significantly improved, but finance costs remained high Summary of Interim Condensed Consolidated Statement of Profit or Loss | Indicator | H1 2025 (RMB'million) | H1 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Electricity Sales | 2,945 | 2,094 | +40.64% | | Tariff Subsidies | 1,141 | 1,178 | -3.14% | | Revenue | 4,086 | 3,272 | +24.87% | | Other Income | 58 | 47 | +23.40% | | Employee Benefit Expenses | (279) | (251) | +11.16% | | Operation and Maintenance Costs | (232) | (150) | +54.67% | | Professional Fees | (85) | (48) | +77.08% | | Taxes and Surcharges | (48) | (28) | +71.43% | | Other Expenses | (224) | (156) | +43.59% | | EBITDA | 3,276 | 2,686 | +21.97% | | Depreciation of Property, Plant and Equipment | (1,683) | (1,102) | +52.72% | | Depreciation of Right-of-Use Assets | (84) | (66) | +27.27% | | Amortisation of Intangible Assets | (3) | – | N/A | | Finance Income | 2 | 49 | -95.92% | | Finance Costs | (1,099) | (1,105) | -0.54% | | Share of Profits of Investments Accounted for Using Equity Method | 40 | 17 | +135.29% | | Profit Before Income Tax | 448 | 434 | +3.23% | | Income Tax Expense | (155) | (142) | +9.15% | | Profit for the Period | 293 | 292 | +0.34% | | Profit Attributable to Equity Holders of the Company | 173 | 33 | +424.24% | | Non-controlling Interests | 120 | 259 | -53.67% | | Basic and Diluted Earnings Per Share (RMB cents) | 7.87 | 1.48 | +431.76% | | Dividends | 193 | 196 | -1.53% | Interim Condensed Consolidated Statement of Comprehensive Income Interim Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, total comprehensive income significantly increased, driven by a shift from currency translation loss to gain Summary of Interim Condensed Consolidated Statement of Comprehensive Income | Indicator | H1 2025 (RMB'million) | H1 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Profit for the Period | 293 | 292 | +0.34% | | Currency Translation Differences | 195 | (134) | N/A (from loss to gain) | | Total Comprehensive Income for the Period | 488 | 158 | +208.86% | | Attributable to Equity Holders of the Company | 368 | (101) | N/A (from loss to gain) | | Non-controlling Interests | 120 | 259 | -53.67% | Interim Condensed Consolidated Statement of Financial Position Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets and equity increased, but current liabilities still exceeded current assets, indicating liquidity pressure Summary of Interim Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB'million) | December 31, 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 86,046 | 85,867 | +0.21% | | Property, Plant and Equipment | 76,091 | 75,749 | +0.45% | | Right-of-Use Assets | 2,940 | 2,858 | +2.87% | | Investments Accounted for Using Equity Method | 1,998 | 1,898 | +5.27% | | Total Current Assets | 19,581 | 16,602 | +17.94% | | Trade, Bills and Tariff Adjustment Receivables | 10,525 | 8,054 | +30.68% | | Cash and Cash Equivalents | 5,398 | 5,195 | +3.91% | | Total Assets | 105,627 | 102,469 | +3.08% | | Total Equity | 25,460 | 22,660 | +12.36% | | Perpetual Medium-Term Notes | 13,322 | 10,777 | +23.62% | | Non-controlling Interests | 7,273 | 7,133 | +1.96% | | Total Non-current Liabilities | 53,652 | 50,833 | +5.54% | | Bank and Other Borrowings (Non-current) | 50,758 | 47,936 | +5.89% | | Total Current Liabilities | 26,515 | 28,976 | -8.49% | | Bank and Other Borrowings (Current) | 18,784 | 20,646 | -9.02% | | Total Liabilities | 80,167 | 79,809 | +0.45% | | Total Equity and Liabilities | 105,627 | 102,469 | +3.08% | - As of June 30, 2025, the group's current liabilities exceeded current assets by approximately RMB 6,934 million[125] Interim Condensed Consolidated Statement of Changes in Equity Interim Condensed Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, total equity significantly increased due to perpetual medium-term note issuance and period profit Summary of Interim Condensed Consolidated Statement of Changes in Equity | Indicator | June 30, 2025 (RMB'million) | January 1, 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Total Equity at Beginning of Period | 22,660 | 17,063 | +32.81% | | Profit for the Period | 293 | 292 | +0.34% | | Other Comprehensive Income | 195 | (134) | N/A | | Final Dividend Declared for 2024 | (193) | – | N/A | | Profit Attributable to Holders of Perpetual Medium-Term Notes | (87) | – | N/A | | Distributions to Holders of Perpetual Medium-Term Notes | (87) | – | N/A | | Issuance of Perpetual Medium-Term Notes | 2,545 | 2,294 | +10.94% | | Capital Contribution from Non-controlling Interests | 33 | 1,323 | -97.50% | | Dividends Declared to Non-controlling Interests | (13) | (217) | -94.01% | | Total Equity at End of Period | 25,460 | 20,438 | +24.57% | - The issuance of perpetual medium-term notes significantly increased total equity, with RMB 2,545 million issued in the first half of 2025[112] - Profit attributable to equity holders of the company significantly increased from RMB 33 million in the first half of 2024 to RMB 173 million in the first half of 2025[112] Interim Condensed Consolidated Statement of Cash Flows Interim Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, net cash inflow from operating activities decreased, while net cash outflows from investing and financing activities also significantly declined Summary of Interim Condensed Consolidated Statement of Cash Flows | Indicator | H1 2025 (RMB'million) | H1 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Net Cash Inflow from Operating Activities | 715 | 1,273 | -43.83% | | Net Cash Outflow from Investing Activities | (2,341) | (7,012) | -66.61% | | Net Cash Inflow from Financing Activities | 1,802 | 8,052 | -77.62% | | Net Increase in Cash and Cash Equivalents | 176 | 2,313 | -92.39% | | Cash and Cash Equivalents at End of Period | 5,398 | 8,539 | -36.89% | - Capital expenditure significantly decreased from RMB 7,216 million in the first half of 2024 to RMB 2,355 million in the first half of 2025[115] - The decrease in net cash inflow from financing activities was primarily due to changes in proceeds from and repayment of bank borrowings, as well as a reduction in capital contributions from non-controlling interests[116] Notes to the Unaudited Condensed Consolidated Interim Financial Information GENERAL INFORMATION The company, incorporated in Bermuda, primarily engages in power station and clean energy projects, controlled by Beijing Energy Group - The company's ordinary shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited[117] - Beijing Energy Investment Group (Hong Kong) Co., Limited is the company's direct controlling shareholder, holding approximately 32.14% of the issued share capital, and is ultimately wholly-owned indirectly by the Beijing State-owned Assets Supervision and Administration Commission[118][122] - The group primarily engages in the development, investment, operation, and management of power stations and other clean energy projects[119][123] BASIS OF PREPARATION The financial information is prepared under HKAS 34 using the historical cost convention, assessing going concern, and disclosing accounting policy changes and risk management - This financial information is prepared in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[120][124] - Except for financial assets and liabilities measured at fair value through profit or loss, this financial information is prepared on a historical cost basis[121][124] Going Concern Despite current liabilities exceeding current assets and significant short-term debt, the board believes the group has sufficient working capital for continued operation - As of June 30, 2025, the group's current liabilities exceeded current assets by approximately RMB 6,934 million[125][129] - Approximately RMB 18,784 million of bank and other borrowings are due for repayment within the next twelve months[125][129] - The group has successfully issued RMB 450 million in perpetual medium-term notes and secured approximately RMB 1,565 million in long-term bank and other borrowings[128][129][131] - The group received approximately RMB 6,815 million in loan support from its controlling shareholder, Beijing Energy Group, and its subsidiaries[131] - The Board is negotiating with banks and other financial institutions to raise approximately RMB 5,196 million in new short-term or long-term financing, utilizing the unused credit guarantee facilities provided by Beijing Energy Group[131] - Existing and future renewable energy projects are expected to generate sufficient operating cash inflows[132] Changes in Accounting Policies and Disclosures The adoption of HKAS 21 (Revised) "Lack of Exchangeability" had no material impact, and other new HKFRSs are not expected to significantly affect financial statements - The group adopted HKAS 21 (Revised) "Lack of Exchangeability," effective from January 1, 2025, during the period[137][141] - This amendment had no material impact on the group's current and prior period financial position and performance[139][141] - Disclosures include Hong Kong Financial Reporting Standards (HKFRS 18, HKFRS 19, etc.) that have been issued but are not yet effective, which are not expected to have a significant impact on the financial statements[142][143][145][146] Financial Risk Management The group faces market, credit, and liquidity risks, using cross-currency swaps to mitigate foreign exchange and interest rate fluctuations - The group's operations expose it to market risks (including foreign exchange risk and cash flow interest rate risk), credit risk, and liquidity risk[150][154] - To mitigate foreign exchange risk and cash flow interest rate risk, the group uses cross-currency swaps to convert floating-rate foreign currency borrowings into fixed-rate RMB borrowings[155][159] REVENUE AND SEGMENT INFORMATION The group's operating segments include solar, wind, hydro, and other businesses, with mainland China as the primary revenue source and high customer concentration - The group's operating segments include solar power generation business, wind power generation business, and hydro power generation business, as well as others (including energy storage business, corporate income and expenses, and other direct investments)[160][161][162] Business Segments For the six months ended June 30, 2025, solar power contributed the highest revenue and segment results, with significant growth in wind power revenue Business Segment Revenue and Results | Segment | H1 2025 Revenue (RMB'million) | H1 2025 Segment Results (RMB'million) | H1 2024 Revenue (RMB'million) | H1 2024 Segment Results (RMB'million) | | :--- | :--- | :--- | :--- | :--- | | Solar Power Generation Business | 2,161 | 1,115 | 2,168 | 1,273 | | Wind Power Generation Business | 1,529 | 660 | 747 | 339 | | Hydro Power Generation Business | 330 | 130 | 357 | 150 | | Others | 66 | (359) | – | (267) | | Total | 4,086 | 1,546 | 3,272 | 1,495 | - Wind power generation business revenue increased from RMB 747 million in the first half of 2024 to RMB 1,529 million in the first half of 2025, a growth of 104.68%[164] Geographical Segments The group's main revenue and non-current assets are concentrated in China, with minor contributions from Australia and Vietnam Revenue by Geographical Segment | Region | H1 2025 (RMB'million) | H1 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | China | 3,918 | 3,123 | +25.46% | | Australia | 146 | 130 | +12.31% | | Vietnam | 22 | 19 | +15.79% | | Total | 4,086 | 3,272 | +24.87% | Non-current Assets by Geographical Segment | Region | June 30, 2025 (RMB'million) | December 31, 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | China | 75,166 | 75,048 | +0.16% | | Australia | 7,321 | 6,841 | +7.02% | | Vietnam | 469 | 505 | -7.13% | | Hong Kong | 3 | 4 | -25.00% | | Total | 82,959 | 82,398 | +0.68% | Information About Major Customers The group's revenue is highly concentrated among a few key customers, with Customers A and B contributing the majority in H1 2025 Major Customer Revenue Contribution | Customer | H1 2025 (RMB'million) | H1 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Customer A | 2,833 | 2,165 | +30.85% | | Customer B | 513 | 388 | +32.22% | | Customer C | 315 | 336 | -6.25% | - In the first half of 2025, Customer A and Customer B each contributed over 10% to the group's total revenue[172][173] - Customer C's contribution to total revenue did not exceed 10% in the first half of 2025[175] FINANCE COSTS For the six months ended June 30, 2025, total finance costs slightly decreased, primarily comprising interest expenses on bank and other borrowings Details of Finance Costs | Indicator | H1 2025 (RMB'million) | H1 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Interest Expense on Bank and Other Borrowings | 1,046 | 1,060 | -1.32% | | Loan Financing Fees for Bank and Other Borrowings | 20 | 19 | +5.26% | | Interest Expense on Lease Liabilities | 31 | 24 | +29.17% | | Interest Expense on Restoration Provisions | 2 | 2 | 0.00% | | Total | 1,099 | 1,105 | -0.54% | INCOME TAX EXPENSES For the six months ended June 30, 2025, income tax expenses increased, mainly from current income tax, with tax incentives for renewable energy projects Details of Income Tax Expenses | Indicator | H1 2025 (RMB'million) | H1 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Current Income Tax | 169 | 156 | +8.33% | | Deferred Income Tax | (14) | (14) | 0.00% | | Total | 155 | 142 | +9.15% | - The group's operations in China are subject to a 25% PRC corporate income tax, with certain renewable energy project subsidiaries enjoying preferential tax reductions[178][179] EARNINGS PER SHARE For the six months ended June 30, 2025, basic and diluted earnings per share attributable to equity holders significantly increased due to higher profit Earnings Per Share | Indicator | H1 2025 (RMB cents) | H1 2024 (RMB cents) | Change Rate | | :--- | :--- | :--- | :--- | | Profit Attributable to Equity Holders of the Company (RMB'million) | 173 | 33 | +424.24% | | Weighted Average Number of Ordinary Shares (million shares) | 2,198 | 2,236 | -1.61% | | Basic Earnings Per Share | 7.87 | 1.48 | +431.76% | | Diluted Earnings Per Share | 7.87 | 1.48 | +431.76% | - The calculation of basic and diluted earnings per share has been adjusted for the effect of the share consolidation effective November 1, 2024[184] - Diluted earnings per share calculation did not assume the exercise of share options as their exercise price was higher than the average market price of the shares[187][189] DIVIDENDS The company declared and paid the 2024 final dividend in H1 2025 but did not declare an interim dividend for the period Dividend Declaration | Indicator | H1 2025 (RMB'million) | H1 2024 (RMB'million) | | :--- | :--- | :--- | | 2024 Final Dividend | 193 | – | | 2023 Final Dividend | – | 196 | | Total | 193 | 196 | - The 2024 final dividend of HKD 10.00 cents (approximately RMB 9.12 cents) per ordinary share, totaling approximately HKD 220 million (approximately RMB 193 million), was paid on July 11, 2025[191] - The company did not pay or declare any interim dividend for ordinary shares during the period[192][193] PROPERTY, PLANT AND EQUIPMENT As of June 30, 2025, the carrying value of the group's property, plant, and equipment slightly increased, influenced by additions and exchange differences Changes in Property, Plant and Equipment | Indicator | June 30, 2025 (RMB'million) | December 31, 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Beginning Balance | 75,749 | 64,150 | +18.08% | | Additions | 1,820 | 13,428 | -86.45% | | Depreciation | (1,683) | (2,475) | -32.00% | | Exchange Differences | 205 | (417) | N/A | | Ending Balance | 76,091 | 75,749 | +0.45% | LEASES As of June 30, 2025, the group's right-of-use assets and lease liabilities increased, primarily consisting of land use rights and non-current lease liabilities Lease Assets and Liabilities | Indicator | June 30, 2025 (RMB'million) | December 31, 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Right-of-Use Assets | 2,940 | 2,858 | +2.87% | | Land Use Rights | 2,780 | 2,737 | +1.57% | | Buildings | 160 | 121 | +32.23% | | Lease Liabilities | 1,609 | 1,512 | +6.41% | | Non-current Lease Liabilities | 1,447 | 1,386 | +4.40% | | Current Lease Liabilities | 162 | 126 | +28.57% | TRADE, BILLS AND TARIFF ADJUSTMENT RECEIVABLES As of June 30, 2025, total trade, bills, and tariff adjustment receivables significantly increased, mainly from unbilled tariff adjustment receivables Trade, Bills and Tariff Adjustment Receivables | Indicator | June 30, 2025 (RMB'million) | December 31, 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Trade Receivables | 881 | 587 | +49.32% | | Tariff Adjustment Receivables | 9,645 | 7,465 | +29.22% | | Bills Receivables | – | 3 | -100.00% | | Total | 10,526 | 8,055 | +30.68% | Ageing Analysis of Unbilled Receivables and Tariff Adjustment Receivables | Ageing | June 30, 2025 (RMB'million) | December 31, 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Within 1 Year | 3,341 | 3,188 | +4.80% | | 1 to 2 Years | 2,219 | 1,750 | +26.80% | | 2 to 3 Years | 1,428 | 968 | +47.52% | | Over 3 Years | 3,472 | 2,096 | +65.65% | | Total | 10,460 | 8,002 | +30.72% | - Management believes that the impairment provision for tariff adjustment receivables is adequate, with no further significant credit losses expected[201][202] CAPITAL AND RESERVES The company's share capital remained stable after the share consolidation, with no changes in treasury shares or new repurchases/cancellations Share Capital As of June 30, 2025, the company's authorized and issued share capital remained stable after the 2024 share consolidation, with no new shares issued Share Capital Movement | Indicator | June 30, 2025 (million shares) | January 1, 2024 (million shares) | June 30, 2025 (RMB'million) | January 1, 2024 (RMB'million) | | :--- | :--- | :--- | :--- | :--- | | Authorized Ordinary Shares (HKD 1.00 per share) | 3,000 | 3,000 | 2,525 | 2,525 | | Issued and Fully Paid Ordinary Shares (HKD 1.00 per share) | 2,234 | 2,234 | 1,915 | 1,915 | - The share consolidation effective November 1, 2024, merged every 10 shares of HKD 0.10 par value into 1 share of HKD 1.00 par value, adjusting the total number of issued ordinary shares from approximately 22,334 million to approximately 2,234 million[211] - The company did not issue any shares during the period[211] Treasury Shares As of June 30, 2025, the company held approximately 34.5 million treasury shares, with no repurchases or cancellations during the period Treasury Share Movement | Indicator | June 30, 2025 (million shares) | January 1, 2024 (million shares) | | :--- | :--- | :--- | | Beginning Balance | 34.5 | 65.9 | | Cancellation | – | (65.9) | | Repurchase | – | 345.0 | | Share Consolidation | – | (310.5) | | Ending Balance | 34.5 | 34.5 | - The company did not cancel or repurchase any ordinary shares during the period[216][217] - As of June 30, 2025, approximately 34.5 million repurchased ordinary shares were held as treasury shares for strategic acquisitions or market resale[220] PERPETUAL MEDIUM-TERM NOTES As of June 30, 2025, the group's total perpetual medium-term notes significantly increased, with two tranches issued to diversify financing channels Perpetual Medium-Term Note Movement | Indicator | June 30, 2025 (RMB'million) | December 31, 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Beginning Balance | 10,777 | 3,494 | +208.45% | | Issuance of Perpetual Medium-Term Notes | 2,550 | 7,300 | -65.07% | | Issuance Transaction Costs | (5) | (17) | -70.59% | | Profit Attributable to Holders | 87 | 145 | -40.00% | | Distributions to Holders | (87) | (145) | -40.00% | | Ending Balance | 13,322 | 10,777 | +23.62% | - Two tranches of perpetual medium-term notes were issued during the period, with a total principal of RMB 1,500 million and distribution rates of 2.47% and 2.38% per annum, respectively[224][225] - Through an agreement with Allianz Insurance, Jingneng Development secured RMB 1,050 million in private perpetual medium-term notes with a fixed distribution rate of 3.30% per annum[226][227] BANK AND OTHER BORROWINGS As of June 30, 2025, the group's total bank and other borrowings increased, while the weighted average annual interest rate and tenure decreased Bank and Other Borrowings Movement | Indicator | June 30, 2025 (RMB'million) | December 31, 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Non-current | 50,758 | 47,936 | +5.89% | | Current | 18,784 | 20,646 | -9.02% | | Total | 69,542 | 68,582 | +1.40% | | Weighted Average Annual Interest Rate | 3.17% | 3.73% | -0.56% | | Weighted Average Annual Tenure | 5.45 years | 5.67 years | -0.22 years | CONVERTIBLE BONDS For the six months ended June 30, 2024, the three-year convertible bonds issued to an independent third party on June 29, 2021, were fully redeemed - In the first half of 2024, the three-year convertible bonds issued to an independent third party on June 29, 2021, were fully redeemed[231][233] ACQUISITIONS OF SUBSIDIARIES The group's strategy is to acquire promising renewable energy projects with stable returns, with no business combinations or asset acquisitions in the current period - The group's strategy is to identify suitable investment opportunities to acquire renewable energy projects with good prospects and potential for stable returns[235][240] - For the six months ended June 30, 2025, there were no business combinations or asset acquisitions[236][241][237][242] - For the six months ended June 30, 2024, the company acquired equity interests in two companies in China from independent third parties through its subsidiaries, which were considered asset acquisitions, with a total grid-connected installed capacity of 180 MW[238][243][244] CASH GENERATED FROM OPERATIONS For the six months ended June 30, 2025, cash generated from operations decreased, primarily due to changes in working capital Cash Generated from Operations | Indicator | H1 2025 (RMB'million) | H1 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Profit Before Income Tax | 448 | 434 | +3.23% | | Operating Profit Before Working Capital Changes | 3,302 | 2,709 | +21.89% | | Changes in Trade, Bills and Tariff Adjustment Receivables | (2,471) | (2,098) | +17.78% | | Changes in Other Receivables, Deposits and Prepayments | 244 | (290) | N/A (from negative to positive) | | Changes in Other Payables and Accrued Expenses | (192) | 1,080 | N/A (from positive to negative) | | Cash Generated from Operations | 883 | 1,401 | -37.09% | CAPITAL COMMITMENTS As of June 30, 2025, the group's capital commitments for property, plant, and equipment were approximately RMB 2,525 million, a decrease from year-end 2024 Capital Commitments | Indicator | June 30, 2025 (RMB'million) | December 31, 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Capital Commitments for Property, Plant and Equipment | 2,525 | 3,083 | -18.10% | RELATED-PARTY TRANSACTIONS The group engages in various related-party transactions with its controlling shareholder and subsidiaries, including interest expenses and administrative fees Significant Related Party Transactions Interest expenses paid to the controlling shareholder and its subsidiaries decreased but remained a primary related-party transaction during the period Summary of Significant Related Party Transactions | Transaction Type | H1 2025 (RMB'million) | H1 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Interest Expense to Controlling Shareholder | 29 | 195 | -85.13% | | Interest Expense to Subsidiaries of Controlling Shareholder | 155 | 185 | -16.22% | | Interest Income from Subsidiaries of Controlling Shareholder | 2 | 14 | -85.71% | | Building Management Fees to Subsidiaries of Controlling Shareholder | 2 | 3 | -33.33% | | Administrative Office Service Expenses to Subsidiaries of Controlling Shareholder | 9 | 9 | 0.00% | - Interest expenses from Beijing Energy Group loans were paid at annual interest rates ranging from 2.01% to 4.05%[265] - Interest expenses from loans from Beijing Energy Group Finance Co., Ltd. and Beijing Jingneng Financial Leasing Co., Ltd. were paid at annual interest rates ranging from 2.40% to 3.20%[265] Significant with Related Party Balances As of June 30, 2025, the group had substantial outstanding bank and financial institution loan balances with its controlling shareholder and subsidiaries Summary of Significant Related Party Balances | Balance Type | June 30, 2025 (RMB'million) | December 31, 2024 (RMB'million) | | :--- | :--- | :--- | | Bank Loans from Subsidiaries of Controlling Shareholder | 5,180 | 5,450 | | Bank Loans from Controlling Shareholder | 1,635 | 1,624 | | Financial Institution Loans from Subsidiaries of Controlling Shareholder | 6,851 | 7,001 | | Other Loans from Associates | 60 | 60 | Key Management Compensation Total key management compensation increased, primarily driven by short-term employee benefits and retirement benefit plan contributions Key Management Compensation | Compensation Type | H1 2025 (RMB'million) | H1 2024 (RMB'million) | Change Rate | | :--- | :--- | :--- | :--- | | Short-term Employee Benefits | 2.05 | 1.62 | +26.54% | | Contributions to Retirement Benefit Plans | 0.16 | 0.05 | +220.00% | | Share-based Payment Expenses | 0.11 | 0.24 | -54.17% | | Total | 2.32 | 1.91 | +21.47% | FAIR VALUE MEASUREMENT The group's financial instruments are measured across three fair value hierarchy levels, with sensitivity analysis performed on Level 3 instruments - Fair value measurement of financial instruments is categorized into Level 1 (quoted prices in active markets), Level 2 (observable market data), and Level 3 (unobservable inputs)[271][272][273][275] - There were no significant transfers of financial assets between Level 1, Level 2, and Level 3 fair value classifications during the period[273][274] Financial Assets and Financial Liabilities Measured at Fair Value As of June 30, 2025, the fair values of Level 3 financial assets (unlisted investments) and financial liabilities (contingent consideration) remained stable Level 3 Financial Instrument Movement | Indicator | January 1, 2025 (RMB'million) | June 30, 2025 (RMB'million) | | :--- | :--- | :--- | | Financial Assets at Fair Value Through Profit or Loss (Unlisted Investments) | 31 | 31 | | Financial Liabilities at Fair Value Through Profit or Loss (Contingent Consideration) | (3) | (2) | Sensitivity Analysis of Observable and Unobservable Inputs Sensitivity analysis for Level 3 financial instruments indicates that changes in discount rates and revenue growth rates impact profit or loss Sensitivity Analysis of Level 3 Financial Instruments | Instrument Type | Key Input Data | Input Data Range | Favorable/(Unfavorable) Change to P&L (June 30, 2025, RMB'million) | | :--- | :--- | :--- | :--- | | Financial Assets at Fair Value Through Profit or Loss (Unlisted Investments) | Discount Rate 5.10% | +0.5% | (0.1) | | | | –0.5% | 0.1 | | | Revenue Growth Rate 0% | +5% | 0.7 | | | | –5% | (0.5) | | Financial Liabilities at Fair Value Through Profit or Loss (Contingent Consideration) | Effective Generation Hours 2,200–2,630 | +1% | – | | | | –1% | – | | | Discount Rate 8.80% | +3% | – | | | | –3% | – | - As of June 30, 2025, the carrying amounts of all the group's financial assets and financial liabilities approximated their fair values[281][284] EVENTS AFTER THE DATE OF STATEMENT OF FINANCIAL POSITION In July 2025, Jingneng Development entered a trust agreement to issue approximately RMB 2,000 million in asset-backed commercial papers - In July 2025, Jingneng Development entered into a trust agreement with Industrial Bank International Trust Co., Ltd. to establish a trust for the issuance of asset-backed commercial papers with a total size of approximately RMB 2,000 million[282][285] COMPARATIVE FIGURES Certain comparative figures have been restated to conform with the current period's presentation - Certain comparative figures have been restated to conform with the current period's presentation[283][286] Other Information DIRECTORS' AND CHIEF EXECUTIVES' INTERESTS IN SHARES, UNDERLYING SHARES AND DEBENTURES As of June 30, 2025, some directors and key executives held long positions in the company's shares and underlying shares Directors' and Chief Executives' Long Positions in Shares and Underlying Shares | Name | Capacity/Nature of Interest | Number of Shares/Underlying Shares Held | Approximate Percentage of Issued Shares | | :--- | :--- | :--- | :--- | | Mr. Zhang Ping | Beneficial Owner | 944,000 | 0.08% | | | Share Option Related Shares | 792,000 | | | Mr. Liu Guoxi | Share Option Related Shares | 429,000 | 0.02% | | Mr. Zhu Jun | Beneficial Owner | 120,000 | 0.05% | | | Share Option Related Shares | 925,650 | | - These percentages are calculated based on 2,233,364,443 listed shares of the company issued as of June 30, 2025[298] - Save as disclosed, none of the directors or chief executives or their associates had any interests or short positions in the shares, underlying shares, or debentures of the company or any of its associated corporations[292][295] DIRECTORS' RIGHTS TO ACQUIRE SHARES OR DEBENTURES No arrangements existed during the period for directors to acquire benefits through shares or debentures, nor did they or their families hold subscription rights - At no time during the six months ended June 30, 2025, was the company, its holding company, any of its subsidiaries, or any subsidiary of its holding company a party to any arrangement to enable the directors to acquire benefits by means of the acquisition of shares or debentures of the company or any other body corporate[293][296] - During the period, none of the directors or their spouses or children under 18 years of age had any right to subscribe for securities of the company, nor did they exercise any such rights[293][296] SHARE OPTION SCHEME The company adopted a share option scheme in 2022 to incentivize talent, with a significant number of options unexercised and a remaining term of about three years - The share option scheme was adopted with shareholder approval on June 15, 2022, aiming to attract, retain, and incentivize outstanding talent of the company, and to establish a long-term incentive mechanism closely linked to the company's performance and long-term strategy[294][297][303][304] Share Option Movement | Grantee | Grant Date | Unexercised as of Jan 1, 2025 (shares) | Lapsed During Period (shares) | Unexercised as of June 30, 2025 (shares) | | :--- | :--- | :--- | :--- | :--- | | Mr. Zhang Ping (Director) | June 16, 2022 | 1,584,000 | (792,000) | 792,000 | | Mr. Liu Guoxi (Director) | June 16, 2022 | 858,000 | (429,000) | 429,000 | | Mr. Zhu Jun (CEO) | June 16, 2022 | 1,851,300 | (925,650) | 925,650 | | Other Executives and Employees | June 16, 2022 | 20,511,480 | (10,396,320) | 10,115,160 | | | June 15, 2023 | 8,457,000 | (2,875,380) | 5,581,620 | | Total | | 33,261,780 | (15,418,350) | 17,843,430 | - The share option exercise price, closing price of shares before the grant date, and number of share options have been adjusted to reflect the impact of the share consolidation effective November 1, 2024[309] - As of the date of this interim report, 224,279,484 shares were available for issue under the share option scheme, representing approximately 10.04% of the company's total issued shares[310] - The share option scheme is valid for six years from its adoption date, with approximately three years remaining as of June 30, 2025[311][312] SUBSTANTIAL SHAREHOLDERS' INTERESTS IN SHARES, UNDERLYING SHARES AND DEBENTURES As of June 30, 2025, key shareholders held long positions in the company's shares and underlying shares, including Beijing Energy Investment Group and China Merchants Group Substantial Shareholders' Long Positions in Shares and Underlying Shares | Shareholder Name/Designation | Capacity/Nature of Interest | Total Number of Shares/Underlying Shares Held | Approximate Percentage of Issued Shares | | :--- | :--- | :--- | :--- | | Beijing Energy Investment Group (Hong Kong) Co., Limited | Beneficial Owner | 717,694,349 | 32.14% | | China Merchants Group Limited | Interest in Controlled Corporation | 339,967,529 | 15.22% | | China Merchants New Energy Group Limited | Beneficial Owner | 339,967,529 | 15.22% | | CITIC Financial Asset Management Co., Ltd. | Interest in Controlled Corporation | 263,378,793 | 11.79% | | Huaqing Photovoltaic Co., Ltd. | Beneficial Owner | 304,875,000 | 13.65% | | China State-owned Enterprise Structural Adjustment Fund Co., Ltd. | Interest in Controlled Corporation | 121,679,330 | 5.45% | | Postal Savings Bank of China Co., Ltd. | Interest in Controlled Corporation | 121,679,330 | 5.45% | | Zeng Xiangyi | Beneficial Owner | 210,736,653 | 9.44% | - These percentages are calculated based on 2,233,364,443 listed shares (including shares held as treasury shares) issued as of June 30, 2025[325] - Beijing Energy Investment Group (Hong Kong) Co., Limited is a direct wholly-owned subsidiary of Beijing Energy Group[325] - China Merchants Group Limited indirectly holds shares through its subsidiaries Snow Hill, China Merchants New Energy Group, and other investment funds[325] PURCHASE, SALE OR REDEMPTION OF THE COMPANY'S LISTED SECURITIES Neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during the period, holding 34.5 million treasury shares - During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities (including the sale of treasury shares)[330][332] - As of June 30, 2025, the company held 34,500,000 treasury shares[330][332] COMPLIANCE WITH THE CORPORATE GOVERNANCE CODE The company applied and complied with all applicable code provisions of the Corporate Governance Code during the period - The company applied and complied with all applicable code provisions of the Corporate Governance Code as set out in Part 2 of Appendix C1 to the Listing Rules during the period[335][341] COMPLIANCE WITH THE MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS The company adopted a code for directors' securities transactions, and all directors confirmed compliance with its standards during the period - The company has adopted a code for directors' securities transactions, the terms of which are no less stringent than the required standards set out in the Model Code[336][342] - All directors confirmed that they have complied with the required standards set out in the Model Code and the company's code throughout the period[336][342] CHANGES IN INFORMATION OF DIRECTORS Non-executive director Mr. Li Hao was re-designated as an executive director of Shougang Fushan Resources, and Mr. Wang Cheng assumed new roles at CITIC Financial Asset International - Non-executive Director Mr. Li Hao was re-designated from a non-executive director to an executive director of Shougang Fushan Resources Limited (stock code: 697), effective June 18, 2025[337][343] - Non-executive Director Mr. Wang Cheng currently serves as Deputy Party Secretary (presiding over Party affairs) and General Manager (acting as executive director) of CITIC Financial Asset International Holdings Limited, a subsidiary of CITIC Financial Asset Management Co., Ltd., a substantial shareholder of the company[338][343](index=343&type=chu