香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 佈 全部或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責 任。 NANYANG HOLDINGS LIMITED （於百慕達註冊成立之有限公司） （股份代號：212） 二零二五年中期業績公佈 | 集團財務摘要 | | | | | --- | --- | --- | --- | | | 未經審核 | | | | | 截至六月三十日止六個月 | | | | | 二零二五年 | 二零二四年 | 變 動 | | | 港幣千元 | 港幣千元 | | | 收入與其他收益 | 169,417 | 144,185 | 17% | | 本 公 司 股 權 持 有 人 應 佔 溢 利╱（虧 損） | 27,528 | (43,740) | 163% | | 本 公 司 股 權 持 有 人 應 佔 溢 利 經 扣 除： | | | | | －投資物業公平值之變動及相關 | | | | | 稅務影響 | 119,226 | 142,7 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何部份內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 截至二零二五年六月三十日止六個月 之未經審核中期業績 天 安 中 國 投 資 有 限 公 司（「本 公 司」）董 事 會（「董 事 會」）宣 佈 本 公 司 及 其 附 屬 公 司 （「本 集 團」）截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 之 未 經 審 核 綜 合 業 績 連 同 二零二四年同期之比較數字如下： 簡明綜合損益表 截至二零二五年六月三十日止六個月 | | | | | （未經審核） | | | --- | --- | --- | --- | --- | --- | | | | | | 截至六月三十日止六個月 | | | | | | | 二零二五年 | 二零二四年 | | | | | 附 註 | 千港元 | 千港元 | | 除稅前溢利 | | | | 4,462,013 | 232,010 | | | 項 | 稅 | (6) | (2,106,022) | (97,8 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何 部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 Marketingforce Management Ltd 邁 富 時 管 理 有 限 公 司 （ 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ） （股份代號：2556） 截至2025年6月30日止六個月的 中期業績公告 邁富時管理有限公司（「本公司」）董事（「董事」）會（「董事會」）宣佈本公司及其附 屬公司（統稱「本集團」）截至2025年6月30日止六個月（「報告期間」）之未經審核 綜合中期業績，連同截至2024年6月30日止六個月之比較數字。於本公告內，「邁富 時」、「我們」、「我們的」均指本集團，而如文義另有所指，則指本公司。 財務摘要 截至6月30日止六個月 | | 2025年 人民幣千元 | 2024年 人民幣千元 | 同比變化 | | --- | --- | --- | --- | | | （未經審核） | （未經審核） | | | 收入 | 928,293 | 739,443 | ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 GREENTOWN MANAGEMENT HOLDINGS COMPANY LIMITED 綠 城 管 理 控 股 有 限 公 司 （ 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ） （股份代號：09979） 截至2025年6月30日止六個月中期業績公告 綠城管理控股有限公司（「綠城管理」或「本公司」或「我們」）董事（「董事」）會（「董事會」）欣 然宣佈本公司及其附屬公司（合稱「本集團」）根據國際財務報告準則編製的截至2025年6月 30日止六個月（「本報告期」或「本期」）未經審核簡明綜合中期業績連同2024年同期的比較 數字。有關中期業績已經本公司審核委員會（「審核委員會」）審閱並獲董事會批准。 摘要 - 1 - • 實現收入約人民幣13.74億元，毛利率約40%。 • 本公司擁有人應佔淨利潤約人民幣2.56億元，本公司擁有人應佔淨利率為19%。 • 經營活動現金淨流入達人民幣1.12億元 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 會 就 因 本 公 告全部或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何 責 任。 萬科海外投資控股有限公司 VANKE OVERSEAS INVESTMENT HOLDING COMPANY LIMITED （於 開 曼 群 島 註 冊 成 立 之 有 限 公 司） （股 份 代 號：01036） 截至二零二五年六月三十日止六個月 未經審核業績公告 中期業績 萬科海外投資控股有限公司（「本公司」，連 同 其 附 屬 公 司 統 稱「本集團」）董事會 （「董事會」）欣然公佈本集團截至二零二五年六月三十日止六個月（「期 間」）之 未 經 審 核 中 期 業 績 如 下： 綜合損益表 截至二零二五年六月三十日止六個月 | 未經審核 | 截至六月三十日止六個月 | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- ...

[Financial Summary](index=1&type=section&id=Financial%20Summary) This section provides a concise overview of the company's financial performance and position for the six months ended June 30, 2025 As at June 30, 2025 Financial Summary | Indicator | 2025 (HK$ Million) | 2024 (HK$ Million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 69.1 | 107.8 | -35.9% | | EBITDA* | (14.7) | (16.9) | -13.0% | | Loss for the Period | (38.4) | (43.7) | -12.1% | | **As at** | **June 30, 2025** | **December 31, 2024** | **Change** | | Gearing Ratio | 13.0% | 12.7% | 0.3 percentage points | | Net Gearing Ratio** | 10.0% | 8.0% | 2.0 percentage points | * EBITDA refers to earnings before finance costs, tax, depreciation and amortisation ** Refers to the ratio of net balance of total bank borrowings less bank balances and cash and restricted bank deposits to equity [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the company's financial performance, including revenue, expenses, and total comprehensive income for the period Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Revenue | 69,134 | 107,821 | | Cost of Sales | (64,094) | (98,586) | | Gross Profit | 5,040 | 9,235 | | Other Income | 1,079 | 1,120 | | Other Gains and Losses | 1,782 | 175 | | Selling and Distribution Costs | (4,449) | (5,867) | | Administrative Expenses | (16,112) | (17,983) | | Other Expenses | (27,489) | (29,546) | | Finance Costs | (1,662) | (1,831) | | Loss Before Tax | (41,811) | (44,697) | | Income Tax Credit | 3,405 | 1,020 | | Loss for the Period Attributable to Owners of the Company | (38,406) | (43,677) | | Exchange Differences on Translation of Overseas Operations | 19,849 | (22,724) | | Total Comprehensive Expense for the Period Attributable to Owners of the Company | (18,557) | (66,401) | | Basic and Diluted Loss Per Share (HK Cents) | (4.70) | (5.34) | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement details the company's assets, liabilities, and equity as of June 30, 2025, and December 31, 2024 Condensed Consolidated Statement of Financial Position (As at June 30, 2025) | Indicator | As at June 30, 2025 (HK$ Thousand) | As at December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 659,510 | 665,812 | | Right-of-use Assets | 17,449 | 17,493 | | Deposits and Prepayments | 125,252 | 131,821 | | **Current Assets** | | | | Inventories | 12,058 | 13,098 | | Trade and Other Receivables | 30,787 | 39,549 | | Deposits and Prepayments | 4,453 | 6,465 | | Restricted Bank Deposits | 596 | 586 | | Bank Balances and Cash | 20,125 | 33,558 | | **Current Liabilities** | | | | Trade and Other Payables | 61,812 | 77,581 | | Tax Payable | 1,689 | 1,361 | | Lease Liabilities | 64 | 141 | | Bank Borrowings | 4,317 | 4,239 | | **Non-current Liabilities** | | | | Bank Borrowings | 87,595 | 88,128 | | Deferred Tax | 5,347 | 8,969 | | **Net Assets** | 709,406 | 727,963 | | **Total Equity Attributable to Owners of the Company** | 709,406 | 727,963 | [Notes](index=4&type=section&id=Notes) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements [1. Basis of Preparation](index=4&type=section&id=1.%20Basis%20of%20Preparation) The unaudited condensed consolidated financial statements are prepared in accordance with HKAS 34 Interim Financial Reporting and Appendix D2 of the Listing Rules - The financial statements are prepared in accordance with Hong Kong Accounting Standard (HKAS) 34 and Appendix D2 of the Listing Rules[5](index=5&type=chunk) [Going Concern Basis](index=4&type=section&id=Going%20Concern%20Basis) The Group faces significant going concern uncertainties due to continuous losses and potential large tax liabilities, despite management's plans - The Group recorded continuous losses for the six months ended June 30, 2025, and 2024, amounting to **HK$38,406,000** and **HK$43,677,000** respectively[6](index=6&type=chunk) - There is a significant contingent liability related to the PRC tax authorities, which if realized, could lead to insufficient cash to meet obligations[6](index=6&type=chunk) - The Directors have prepared cash flow forecasts and obtained a letter of intent for a **RMB300 million** loan facility to support going concern[7](index=7&type=chunk) [2. Significant Accounting Policies](index=5&type=section&id=2.%20Significant%20Accounting%20Policies) The unaudited condensed consolidated financial statements are prepared on a historical cost basis, with consistent accounting policies - The financial statements are prepared on a historical cost basis, with accounting policies consistent with the prior year[8](index=8&type=chunk) - The adoption of new and revised Hong Kong Financial Reporting Standards has not resulted in significant changes to the Group's accounting policies, financial statement presentation, or reported amounts[9](index=9&type=chunk) [3. Revenue and Segment Information](index=5&type=section&id=3.%20Revenue%20and%20Segment%20Information) The Group's manufacturing operations in China are segmented into containerboard and corrugated packaging, with the latter being the sole source of external revenue [Segment Revenue and Results](index=6&type=section&id=Segment%20Revenue%20and%20Results) All Group revenue is derived from corrugated packaging, with both segments reporting losses, particularly the containerboard segment Analysis of Revenue and Results by Operating and Reportable Segment | Segment | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | **Revenue** | | | | Containerboard | – | – | | Corrugated Packaging | 69,134 | 107,821 | | **Segment Loss** | | | | Containerboard | (30,058) | (31,336) | | Corrugated Packaging | (4,424) | (3,341) | | Central Administrative Expenses | (5,667) | (8,189) | | Finance Costs | (1,662) | (1,831) | | Loss Before Tax | (41,811) | (44,697) | [4. Finance Costs](index=7&type=section&id=4.%20Finance%20Costs) The Group's finance costs primarily consist of interest on bank borrowings, showing a decrease compared to the prior period Details of Finance Costs (For the six months ended June 30) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Interest on Bank Borrowings | 1,660 | 1,826 | | Interest on Lease Liabilities | 2 | 5 | | **Total** | **1,662** | **1,831** | [5. Income Tax Credit](index=7&type=section&id=5.%20Income%20Tax%20Credit) The Group recorded an income tax credit, mainly from deferred tax, benefiting from Hong Kong's two-tiered tax rate and China's preferential rates for high-tech enterprises Details of Income Tax Credit (For the six months ended June 30) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Current Tax: Hong Kong Profits Tax | 331 | 390 | | Current Tax: PRC Enterprise Income Tax | 3 | – | | Deferred Tax Credit | (3,739) | (1,410) | | **Total** | **(3,405)** | **(1,020)** | - Hong Kong Profits Tax applies a two-tiered tax rate, with the first **HK$2,000,000** of assessable profits taxed at **8.25%** and the remainder at **16.5%**[14](index=14&type=chunk) - PRC subsidiaries are subject to a **25%** Enterprise Income Tax rate, with one high-tech enterprise enjoying a preferential rate of **15%**[15](index=15&type=chunk) [6. Loss for the Period](index=8&type=section&id=6.%20Loss%20for%20the%20Period) This section details key expenses and income items, such as depreciation, staff costs, and inventory costs, included in or deducted from the loss for the period Loss for the Period has been (Credited)/Charged with the following (For the six months ended June 30) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 25,105 | 25,652 | | Depreciation of Right-of-use Assets | 340 | 342 | | Gain on Termination of Lease Contracts | – | (7) | | Staff Costs (including Directors' Emoluments) | 17,394 | 19,574 | | Cost of Inventories Recognised as Expense | 64,094 | 98,586 | | Exchange Gain, Net | (29) | (81) | [7. Dividends](index=8&type=section&id=7.%20Dividends) The Group neither declared nor proposed any dividends during or at the end of the reporting period - For the six months ended June 30, 2025, and 2024, the Group did not declare or propose any dividends[17](index=17&type=chunk) [8. Loss Per Share](index=8&type=section&id=8.%20Loss%20Per%20Share) Basic and diluted loss per share attributable to owners was 4.70 HK cents, showing an improvement, with no dilutive effect from share options Loss Per Share Calculation (For the six months ended June 30) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Loss for the Purpose of Calculating Basic and Diluted Loss Per Share | (38,406) | (43,677) | | Weighted Average Number of Ordinary Shares for Basic and Diluted Loss Per Share | 817,644,000 | 817,644,000 | | Basic and Diluted Loss Per Share (HK Cents) | (4.70) | (5.34) | - The exercise price of share options was higher than the average market price of shares, thus no dilutive effect was included in the calculation of diluted loss per share[18](index=18&type=chunk) [9. Trade and Other Receivables](index=9&type=section&id=9.%20Trade%20and%20Other%20Receivables) The Group's total trade and other receivables decreased, primarily due to a reduction in trade receivables, with credit terms ranging from 5 to 120 days Total Trade and Other Receivables (As at June 30, 2025) | Item | As at June 30, 2025 (HK$ Thousand) | As at December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Trade Receivables | 21,796 | 30,665 | | Less: Provision for Credit Losses | (248) | (243) | | Other Receivables | 9,239 | 9,127 | | **Total Trade and Other Receivables** | **30,787** | **39,549** | Ageing Analysis of Trade Receivables (As at June 30, 2025) | Ageing | As at June 30, 2025 (HK$ Thousand) | As at December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Within 30 Days | 14,169 | 20,504 | | 31-60 Days | 6,474 | 9,488 | | 61-90 Days | 413 | 341 | | Over 90 Days | 492 | 89 | | **Total** | **21,548** | **30,422** | - The Group grants trade customers credit terms ranging from **5 to 120 days**, with an average ageing of approximately **56 days** (December 31, 2024: approximately **53 days**)[19](index=19&type=chunk) [10. Trade and Other Payables](index=10&type=section&id=10.%20Trade%20and%20Other%20Payables) The Group's total trade and other payables decreased, with supplier credit terms between 30 and 90 days, and overdue trade payables remaining stable Total Trade and Other Payables (As at June 30, 2025) | Item | As at June 30, 2025 (HK$ Thousand) | As at December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Trade Payables | 16,236 | 22,703 | | Payables for Acquisition of Property, Plant and Equipment | 3,200 | 2,492 | | Other PRC Taxes Payable | 13,010 | 11,794 | | Accrued Expenses | 25,692 | 37,811 | | Other Payables | 3,674 | 2,781 | | **Total** | **61,812** | **77,581** | Ageing Analysis of Trade Payables (As at June 30, 2025) | Ageing | As at June 30, 2025 (HK$ Thousand) | As at December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Current | 4,629 | 11,311 | | Overdue 1 to 30 Days | 23 | 8 | | Overdue 31 to 60 Days | – | – | | Overdue Over 60 Days | 11,584 | 11,384 | | **Trade Payables** | **16,236** | **22,703** | [11. Litigation and Contingent Liabilities](index=11&type=section&id=11.%20Litigation%20and%20Contingent%20Liabilities) The Group faces a significant tax issue related to its PRC subsidiary, Senye Paper, involving VAT invoice irregularities, unpaid taxes of approximately RMB 109 million, and administrative penalties of RMB 44.07 million, which the Group is contesting [Tax Treatment Decision](index=11&type=section&id=Tax%20Treatment%20Decision) Senye Paper appealed the Qingyuan Tax Bureau's tax treatment decision, including a rejected tax guarantee application and a review application to the Guangdong High People's Court, which was dismissed, now seeking administrative supervision - Senye Paper was required to pay approximately **RMB109 million** in outstanding taxes and surcharges due to VAT invoice issues[22](index=22&type=chunk) - Senye Paper's application for a tax guarantee was rejected, leading to appeals to various mainland authorities[23](index=23&type=chunk) - The application for review to the Guangdong High People's Court was dismissed, and an application for administrative supervision has been filed with the Qingyuan People's Procuratorate of Guangdong Province[24](index=24&type=chunk)[25](index=25&type=chunk) [Tax Penalty Decision](index=12&type=section&id=Tax%20Penalty%20Decision) Senye Paper sought administrative reconsideration and then initiated administrative litigation regarding the tax penalty decision; the second instance judgment overturned the first instance and dismissed Senye Paper's claims, prompting the Group to seek legal advice - Senye Paper was subject to an administrative penalty of approximately **RMB44.07 million**[22](index=22&type=chunk) - Senye Paper applied for administrative reconsideration with the Guangdong Provincial Tax Service regarding the tax penalty decision, followed by administrative litigation[26](index=26&type=chunk) - The second instance judgment overturned the first instance administrative judgment and dismissed Senye Paper's claims, and the Group is seeking PRC legal advice on this matter[27](index=27&type=chunk)[28](index=28&type=chunk) [Interim Dividend](index=14&type=section&id=Interim%20Dividend) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025[29](index=29&type=chunk) [Business Review](index=14&type=section&id=Business%20Review) The Group's revenue declined significantly in the first half of 2025 due to reduced orders and intense market competition, while its upstream business aims to resume production after a boiler conversion project - In the first half of 2025, the Group's revenue decreased by **35.9%**, primarily due to reduced customer orders and intense market competition[30](index=30&type=chunk) - The upstream containerboard business has been temporarily suspended since October 2021 and is currently coordinating a coal-to-gas boiler conversion project to resume production[30](index=30&type=chunk) - The corrugated packaging industry faces a challenging operating environment, and the Group is committed to strengthening cost control management and improving efficiency to reduce losses[30](index=30&type=chunk) [Financial Review](index=14&type=section&id=Financial%20Review) This section provides a comprehensive analysis of the Group's financial performance, liquidity, and capital resources for the reporting period [Operating Results](index=14&type=section&id=Operating%20Results) The Group's revenue significantly decreased by 35.9% to HK$69.1 million, leading to lower gross profit and margin, though the loss for the period narrowed despite negative EBITDA Key Operating Results Changes (For the six months ended June 30) | Indicator | 2025 (HK$ Million) | 2024 (HK$ Million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 69.1 | 107.8 | -35.9% | | Gross Profit | 5.0 | 9.2 | -45.7% | | Gross Profit Margin | 7.3% | 8.6% | -1.3 percentage points | | Other Income | 1.08 | 1.1 | -1.8% | | Other Gains and Losses (Net Gain) | 1.8 | 0.174 | +934.5% | | Selling and Distribution Costs | 4.4 | 5.9 | -25.5% | | Administrative Expenses | 16.1 | 17.9 | -10.1% | | Other Expenses | 27.5 | 29.5 | -6.8% | | Finance Costs | 1.7 | 1.8 | -5.6% | | EBITDA | (14.7) | (16.9) | +13.0% | | Loss for the Period | (38.4) | (43.7) | +12.1% | - The decrease in revenue was primarily due to reduced customer orders and intense competition[31](index=31&type=chunk) - The significant increase in net other gains and losses was mainly due to the write-off of accrued expenses and other payables[31](index=31&type=chunk) [Liquidity, Financial and Capital Resources](index=15&type=section&id=Liquidity%2C%20Financial%20and%20Capital%20Resources) The Group experienced reduced cash and cash equivalents, net current assets, and liquidity ratio, indicating increased liquidity pressure, alongside extended turnover days and higher leverage ratios Liquidity and Financial Indicators (As at June 30, 2025) | Indicator | As at June 30, 2025 | As at December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Cash and Cash Equivalents | HK$20.1 Million | HK$33.6 Million | -40.2% | | Net Current Assets | HK$0.1 Million | HK$9.9 Million | -99.0% | | Current Ratio | 1.0 | 1.12 | -0.12 | | Trade Receivables Turnover Days | Approx. 56 Days | Approx. 53 Days | +3 Days | | Trade Payables Turnover Days | Approx. 46 Days | Approx. 43 Days | +3 Days | | Inventory Turnover Days | Approx. 46 Days | Approx. 33 Days | +13 Days | | Total Bank Borrowings | HK$91.9 Million | HK$92.4 Million | -0.5% | | Gearing Ratio | 13.0% | 12.7% | +0.3 percentage points | | Net Borrowings | HK$71.2 Million | HK$58.2 Million | +22.3% | | Net Gearing Ratio | 10.0% | 8.0% | +2.0 percentage points | - The Group's capital expenditure in China was **HK$0.2 million**, primarily for property, plant, and equipment, a significant decrease from the prior period[34](index=34&type=chunk) [Outlook](index=16&type=section&id=Outlook) The corrugated packaging industry is expected to remain challenging, but the Group anticipates resuming upstream operations and benefiting from increasing demand for eco-friendly paper packaging - The operating environment for the corrugated packaging industry is expected to remain challenging, facing soaring manufacturing costs and weak market demand[36](index=36&type=chunk) - The Group anticipates its upstream business will resume operations after completing the coal-to-gas boiler conversion project to achieve vertical integration advantages[36](index=36&type=chunk) - Stricter controls on plastic packaging in China and market focus on sustainability will drive demand for environmentally friendly paper packaging, benefiting the Group's business[36](index=36&type=chunk) - The Group will focus on strategies such as pricing power, increasing sales volume, improving production efficiency, and reducing energy use and raw material waste[36](index=36&type=chunk) [Human Resources](index=16&type=section&id=Human%20Resources) The Group employed approximately 206 full-time staff as of June 30, 2025, a decrease from the prior period, offering competitive remuneration and performance-based incentives - As of June 30, 2025, the Group employed approximately **206** full-time staff, a decrease from **229** as of December 31, 2024[37](index=37&type=chunk) - The Group offers competitive remuneration packages to employees and may grant share options and discretionary bonuses based on performance[37](index=37&type=chunk) [Audit Committee](index=16&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, reviewed the interim results, financial statements, risk management, internal controls, and financial reporting - The Audit Committee, consisting of three independent non-executive directors, has reviewed the Group's interim results announcement and financial statements, and discussed risk management, internal controls, and financial reporting matters[38](index=38&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=16&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2025 - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[39](index=39&type=chunk) [Model Code for Securities Transactions](index=17&type=section&id=Model%20Code%20for%20Securities%20Transactions) The Company has adopted a code of conduct for directors' securities transactions, which is no less stringent than the Model Code in Appendix C3 of the Listing Rules - The Company has adopted a code of conduct for directors' securities transactions, with terms no less stringent than the Model Code set out in Appendix C3 of the Listing Rules[40](index=40&type=chunk) [Corporate Governance](index=17&type=section&id=Corporate%20Governance) The Company's corporate governance practices include deviations from certain code provisions regarding the roles of Chairman and CEO, audit committee meetings, and remuneration committee responsibilities [Code Provision C.2.1](index=17&type=section&id=Code%20Provision%20C.2.1) The Company deviates from the code provision requiring written delineation of Chairman and CEO responsibilities, as their roles are considered clearly defined - The Company has not formally separated the roles of Chairman and Chief Executive Officer in writing, but the Board believes their respective responsibilities are clearly defined[42](index=42&type=chunk)[43](index=43&type=chunk) [Code Provision D.3.3](index=17&type=section&id=Code%20Provision%20D.3.3) The Company deviates from the code provision for the Audit Committee to meet with auditors at least twice annually, as no auditors were engaged for the interim review - The Audit Committee meets with the auditors once a year, instead of the minimum two times required by the code, as no auditors were engaged to review the interim report[42](index=42&type=chunk)[43](index=43&type=chunk) [Code Provision E.1.2](index=18&type=section&id=Code%20Provision%20E.1.2) The Company deviates from the code provision for the Remuneration Committee to review senior management remuneration, which is currently handled by the Chairman and/or CEO - The Remuneration Committee only reviews the remuneration of Directors, while senior management remuneration is handled by the Chairman and/or Chief Executive Officer[44](index=44&type=chunk)[48](index=48&type=chunk) [Public Float](index=18&type=section&id=Public%20Float) As of the announcement date, at least 25% of the Company's total issued shares are held by the public - As of the date of this announcement, at least **25%** of the Company's total issued shares are held by the public[45](index=45&type=chunk) [Publication of Results Announcement and Interim Report](index=18&type=section&id=Publication%20of%20Results%20Announcement%20and%20Interim%20Report) The results announcement has been published on the Company's and HKEX websites, with the interim report to be dispatched to shareholders and published in September 2025 - This results announcement has been published on the Company's website and the website of Hong Kong Exchanges and Clearing Limited[46](index=46&type=chunk) - The interim report for the six months ended June 30, 2025, will be dispatched to shareholders and published on the Company's and HKEX websites in September 2025[46](index=46&type=chunk) [Acknowledgement](index=18&type=section&id=Acknowledgement) The Board of Directors extends its sincere gratitude to shareholders, business partners, and company employees - The Board of Directors extends its sincere gratitude to shareholders, business partners, and company employees[47](index=47&type=chunk)

[Financial Highlights and Company Overview](index=1&type=section&id=Financial%20Highlights%20and%20Company%20Overview) This section presents the company's key financial highlights for the first half of 2025 and outlines its core business activities and financial reporting basis [Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company reported its unaudited condensed consolidated results for the first half of 2025, detailing key financial performance metrics Financial Highlights (For the six months ended June 30) | Indicator | Amount (million HKD) | | :--- | :--- | | Revenue | 12,672 | | Gross Profit | 300 | | Profit | 133 | | Profit attributable to equity holders of the Company | 136 | | Basic and diluted earnings per share | 0.051 | [Company Information and Basis of Preparation](index=6&type=section&id=Company%20Information%20and%20Basis%20of%20Preparation) The company's core business activities and the basis for preparing its interim financial information are outlined - The Group is principally engaged in coal and other commodity trading and providing integrated supply chain services[10](index=10&type=chunk) - The interim financial information has been prepared in accordance with the HKEX Listing Rules and International Accounting Standard 34 'Interim Financial Reporting'[11](index=11&type=chunk) [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the condensed consolidated statements of profit or loss, comprehensive income, and financial position for the reporting period [Consolidated Statement of Profit or Loss](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) Revenue, gross profit, and profit for the period significantly declined for the six months ended June 30, 2025, driven by increased cost of sales and reduced operating profit Consolidated Statement of Profit or Loss Key Data (For the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 12,672,225 | 19,854,020 | -36.17% | | Cost of Sales | (12,372,035) | (18,627,921) | -33.58% | | Gross Profit | 300,190 | 1,226,099 | -75.50% | | Other Income | 170,928 | 94,452 | 80.97% | | Administrative Expenses | (290,039) | (420,041) | -30.95% | | Operating Profit | 181,079 | 900,510 | -79.89% | | Net Finance Costs | (67,760) | (55,942) | 21.13% | | Profit Before Tax | 101,142 | 939,260 | -89.22% | | Profit for the Period | 133,331 | 830,103 | -83.93% | | Profit attributable to equity holders of the Company | 136,240 | 782,859 | -82.63% | | Basic and diluted earnings per share (HKD) | 0.051 | 0.294 | -82.65% | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Total comprehensive income for the period significantly decreased by 76.6% due to reduced profit, despite a positive shift in exchange differences Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data (For the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit for the Period | 133,331 | 830,103 | -83.93% | | Exchange differences on translation | 47,039 | (54,960) | N/A (from negative to positive) | | Other comprehensive income for the period | 48,175 | (53,509) | N/A (from negative to positive) | | Total comprehensive income for the period | 181,506 | 776,594 | -76.62% | | Attributable to equity holders of the Company | 182,756 | 746,888 | -75.51% | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) Total assets less current liabilities slightly decreased, while total current assets significantly declined, and net assets saw a modest increase as of June 30, 2025 Consolidated Statement of Financial Position Key Data (As of June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (%) | | :--- | :--- | :--- | :--- | | Total non-current assets | 6,988,995 | 7,038,412 | -0.70% | | Total current assets | 7,482,706 | 10,396,326 | -28.02% | | Total current liabilities | 4,832,182 | 7,728,922 | -37.50% | | Net current assets | 2,650,524 | 2,667,404 | -0.63% | | Total assets less current liabilities | 9,639,519 | 9,705,816 | -0.68% | | Total non-current liabilities | 461,544 | 604,843 | -23.70% | | Net assets | 9,177,975 | 9,100,973 | 0.85% | | Total equity attributable to equity holders of the Company | 8,788,761 | 8,661,550 | 1.47% | [Notes to the Unaudited Interim Financial Information](index=6&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Information) This section provides detailed notes on accounting policies, revenue, segment reporting, income, expenses, and balance sheet items for the interim period [Changes in Accounting Policies](index=6&type=section&id=Changes%20in%20Accounting%20Policies) Amendments to IAS 21 regarding foreign exchange rates were applied but had no significant impact on the interim financial information - The Group has applied the amendments to IAS 21 'The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability', but they had no significant impact on this interim financial information[12](index=12&type=chunk) [Revenue and Segment Reporting](index=7&type=section&id=Revenue%20and%20Segment%20Reporting) Revenue from coal and other commodity trading and supply chain services decreased by 36.17%, with coal trading revenue significantly down, while overseas market share grew - The Group is principally engaged in coal and other commodity trading and providing integrated supply chain services[14](index=14&type=chunk) [Disaggregation of Revenue](index=7&type=section&id=Disaggregation%20of%20Revenue) Revenue is disaggregated by product/service and geography, showing coal as the largest but declining source, with increased overseas market share Revenue by Major Product or Service Line (thousand HKD) | Product/Service Line | 2025 | 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Coal | 9,667,908 | 16,858,477 | -42.65% | | Provision of supply chain integrated services | 1,802,424 | 2,100,552 | -14.19% | | Petroleum and petrochemical products | 1,024,038 | 746,656 | 37.15% | | Coke | 89,018 | – | N/A | | Iron ore | 77,356 | 112,917 | -31.50% | | Others | 11,481 | 35,418 | -67.60% | | **Total** | **12,672,225** | **19,854,020** | **-36.17%** | Revenue by Customer Geographical Location (thousand HKD) | Geographical Location | 2025 | 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | China (including Hong Kong, Macau and Taiwan) | 8,519,404 | 14,942,943 | -42.99% | | Indonesia | 1,219,331 | 1,835,536 | -33.58% | | Mongolia | 633,834 | 422,881 | 49.89% | | South Korea | 582,729 | 713,909 | -18.49% | | Malaysia | 554,927 | 1,011,534 | -45.14% | | India | 345,855 | 295,276 | 17.13% | | Vietnam | 293,593 | 128,650 | 128.21% | | Japan | 286,228 | 503,291 | -43.00% | | Canada | 180,359 | – | N/A | | Others | 55,965 | – | N/A | | **Total** | **12,672,225** | **19,854,020** | **-36.17%** | [Segment Profit or Loss, Assets and Liabilities Information](index=8&type=section&id=Segment%20Profit%20or%20Loss%2C%20Assets%20and%20Liabilities%20Information) Coal and other commodity trading segment profit (adjusted EBITDA) turned to a loss, and total reportable segment profit significantly decreased by 62.4% Reportable Segment Key Data (For the six months ended June 30) | Indicator | Coal and Other Commodity Trading (thousand HKD) | Provision of Supply Chain Integrated Services (thousand HKD) | Total (thousand HKD) | | :--- | :--- | :--- | :--- | | **2025** | | | | | Revenue from external customers | 10,869,801 | 1,802,424 | 12,672,225 | | Reportable segment (loss)/profit (adjusted EBITDA) | (39,825) | 486,218 | 446,393 | | Additions to non-current segment assets during the period | 78,097 | 200,986 | 279,083 | | Reportable segment assets (as of June 30) | 8,249,638 | 7,183,375 | 15,433,013 | | Reportable segment liabilities (as of June 30) | 3,608,731 | 2,700,714 | 6,309,445 | | **2024** | | | | | Revenue from external customers | 17,753,468 | 2,100,552 | 19,854,020 | | Reportable segment (loss)/profit (adjusted EBITDA) | 480,835 | 707,816 | 1,188,651 | | Additions to non-current segment assets during the period | 179,366 | 319,605 | 498,971 | | Reportable segment assets (as of December 31) | 11,333,992 | 7,296,415 | 18,630,407 | | Reportable segment liabilities (as of December 31) | 6,446,609 | 2,996,745 | 9,443,354 | - Reportable segment profit (adjusted EBITDA) significantly decreased by **62.4%** from **HKD 1,188,651 thousand** in the first half of 2024 to **HKD 446,393 thousand** in the first half of 2025[20](index=20&type=chunk) [Other Income](index=9&type=section&id=Other%20Income) Other income increased by 80.97% due to significant gains from derivative financial instruments and structured deposit products Other Income Components (thousand HKD) | Item | 2025 | 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net realized and unrealized gains from derivative financial instruments and structured deposit products | 150,246 | 60,965 | 146.45% | | Government grants | 7,914 | 31,007 | -74.48% | | Others | 12,768 | 2,480 | 414.84% | | **Total** | **170,928** | **94,452** | **80.97%** | - Net realized and unrealized gains from derivative financial instruments primarily refer to the Group's net gains from commodity futures contracts[22](index=22&type=chunk) [Components of Profit Before Tax](index=10&type=section&id=Components%20of%20Profit%20Before%20Tax) Profit before tax was influenced by increased net finance costs, decreased staff costs, and higher amortization and depreciation - Profit before tax is after deducting/(crediting) net finance costs, staff costs, and other items[23](index=23&type=chunk) [Net Finance Costs](index=10&type=section&id=Net%20Finance%20Costs) Net finance costs increased by 21.13% due to a significant rise in net foreign exchange losses Net Finance Costs Components (thousand HKD) | Item | 2025 | 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Interest income | (31,010) | (28,677) | 8.13% | | Total interest expense | 55,988 | 63,327 | -11.59% | | Net foreign exchange losses | 35,789 | 10,373 | 245.02% | | Bank and other charges | 6,993 | 10,919 | -35.96% | | **Net Finance Costs** | **67,760** | **55,942** | **21.13%** | [Staff Costs](index=10&type=section&id=Staff%20Costs) Total staff costs decreased by 18.05% due to reductions in salaries, wages, bonuses, and other benefits Staff Costs Components (thousand HKD) | Item | 2025 | 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Salaries, wages, bonuses and other benefits | 332,447 | 417,225 | -20.32% | | Contributions to defined contribution retirement plans | 24,636 | 18,491 | 33.23% | | **Total** | **357,083** | **435,716** | **-18.05%** | [Other Items](index=11&type=section&id=Other%20Items) Amortization and depreciation increased by 39.41%, while impairment loss reversal for trade receivables and inventory write-downs decreased Other Key Items (thousand HKD) | Item | 2025 | 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Amortization and depreciation | 283,270 | 203,197 | 39.41% | | Impairment loss (reversal) for trade receivables | (7,431) | (9,444) | -21.31% | | Inventory write-downs | 27,743 | 144,710 | -80.80% | [Income Tax](index=11&type=section&id=Income%20Tax) Income tax shifted from a credit to an expense, driven by reduced deferred tax movements and Pillar Two income tax recognition Income Tax Components (thousand HKD) | Item | 2025 | 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Current tax – Hong Kong Profits Tax | 12,595 | 13,987 | -10.09% | | Current tax – Outside Hong Kong | 49,411 | 120,061 | -58.84% | | Pillar Two income tax | 6,247 | – | N/A | | Deferred tax | (102,020) | (32,453) | 214.38% | | **Total** | **(32,189)** | **109,157** | N/A (from positive to negative) | - Certain subsidiaries of the Group enjoy a preferential tax rate of **15%**, including enterprises in Hainan Free Trade Port and those encouraged by the Western Development Strategy[27](index=27&type=chunk) - The Company obtained a High-Tech Enterprise Certificate in October 2024, entitling it to a **15%** income tax rate from 2024 to 2026[28](index=28&type=chunk) - The Group recognized a current tax expense of **HKD 6,247 thousand** related to Pillar Two top-up tax in the first half of 2025[30](index=30&type=chunk) [Earnings Per Share](index=13&type=section&id=Earnings%20Per%20Share) Basic and diluted earnings per share significantly decreased by 82.65% due to reduced profit attributable to equity holders of the Company Earnings Per Share Calculation (For the six months ended June 30) | Indicator | 2025 | 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit attributable to equity holders of the Company (thousand HKD) | 136,240 | 782,859 | -82.63% | | Weighted average number of ordinary shares (thousand shares) | 2,646,823 | 2,663,980 | -0.64% | | **Basic and diluted earnings per share (HKD)** | **0.051** | **0.294** | **-82.65%** | - For the six months ended June 30, 2025 and 2024, basic and diluted earnings per share were identical as there were no potentially dilutive ordinary shares outstanding during the periods[32](index=32&type=chunk) [Property, Plant and Equipment and Investment Properties](index=13&type=section&id=Property%2C%20Plant%20and%20Equipment%20and%20Investment%20Properties) Acquisitions of property, plant and equipment increased by 49.8%, with disposals generating gains and transfers from construction in progress Property, Plant and Equipment Movements (thousand HKD) | Item | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Additions to property, plant and equipment | 181,442 | 121,136 | 49.79% | | Net book value of property, plant and equipment disposed of | 9,090 | 117,271 | -92.25% | | Gain on disposal | 1,052 | 3,890 | -72.96% | | Transfer from construction in progress to property, plant and equipment | 115,589 | 146,039 | -20.85% | [Other Non-current Assets](index=14&type=section&id=Other%20Non-current%20Assets) Other non-current assets increased by 6.56%, mainly due to loans to joint ventures, with certain assets pledged as collateral Other Non-current Assets Components (thousand HKD) | Item | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Loans to joint ventures | 388,745 | 361,652 | 7.49% | | Prepayments for property and equipment and construction in progress | 63,900 | 63,126 | 1.23% | | **Total** | **452,645** | **424,778** | **6.56%** | - The Group provided loans to joint ventures with a maximum limit of **USD 45,000,000** at an annual interest rate of **7%**, secured by logistics facilities[35](index=35&type=chunk) - As of June 30, 2025, the Group had pledged **HKD 660,262 thousand** of property, plant and equipment as collateral for borrowings, bills payable, and lease liabilities[37](index=37&type=chunk) [Inventories](index=15&type=section&id=Inventories) Total inventories significantly decreased by 72.95% due to reduced coal inventories, with no pledged inventories at period-end Inventories Components (thousand HKD) | Item | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Coal | 461,452 | 1,950,968 | -76.35% | | Others | 88,259 | 81,938 | 7.71% | | **Total** | **549,711** | **2,032,906** | **-72.95%** | - As of June 30, 2025, the Group had no pledged inventories, compared to **HKD 224,968 thousand** pledged inventories as of December 31, 2024[38](index=38&type=chunk) [Trade and Other Receivables](index=15&type=section&id=Trade%20and%20Other%20Receivables) Total trade and other receivables decreased by 31.53%, with a significant reduction in trade and bills receivables, and some bills pledged Trade and Other Receivables Components (thousand HKD) | Item | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Trade and bills receivables, net of loss allowance | 884,857 | 1,708,867 | -48.22% | | Bank acceptance bills | 708,384 | 1,108,107 | -36.07% | | Other receivables | 82,471 | 166,769 | -50.54% | | Deposits and prepayments | 840,004 | 819,419 | 2.51% | | Other recoverable taxes | 367,772 | 376,329 | -2.27% | | Derivative financial instruments | 115,521 | 87,414 | 32.16% | | Investment in structured deposit products | – | 112,180 | -100.00% | | **Total** | **2,999,009** | **4,379,085** | **-31.53%** | - As of June 30, 2025, the Group's bills receivable of **HKD 510,513 thousand** had been pledged as collateral for borrowings and bills payable[40](index=40&type=chunk) [Trade and Other Payables](index=16&type=section&id=Trade%20and%20Other%20Payables) Total trade and other payables significantly decreased by 39.30%, with a substantial reduction in trade and bills payable Trade and Other Payables Components (thousand HKD) | Item | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total trade and bills payable | 2,120,756 | 3,570,629 | -40.68% | | Payables for construction work | 49,710 | 119,912 | -58.54% | | Payables for purchase of equipment and vehicles | 159,490 | 357,604 | -55.40% | | Staff-related costs payable | 88,788 | 301,917 | -70.62% | | Dividends payable | 85,752 | 217,781 | -60.53% | | **Total** | **2,997,806** | **4,955,836** | **-39.30%** | Analysis of Bills Payable (thousand HKD) | Collateral Type | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Pledged by restricted bank deposits, bills receivable and structured deposits | 1,287,555 | 1,970,417 | -34.66% | | Pledged by restricted bank deposits, property, plant and equipment, land use rights and inventories | 214,206 | 218,185 | -1.82% | | Pledged by restricted bank deposits and credit guarantees | 231,993 | 37,942 | 511.44% | | **Total** | **1,733,754** | **2,226,544** | **-22.13%** | [Secured Bank Loans](index=17&type=section&id=Secured%20Bank%20Loans) Total secured bank loans decreased by 27.35%, with a decline across all collateralized loan categories Secured Bank Loans Analysis (thousand HKD) | Collateral Type | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Pledged by bills receivable and restricted bank deposits | 357,613 | 643,655 | -44.45% | | Pledged by restricted bank deposits, property, plant and equipment, land use rights and inventories | 655,191 | 711,745 | -7.95% | | Pledged by restricted bank deposits and credit guarantees | 649,997 | 936,125 | -30.58% | | **Total** | **1,662,801** | **2,291,525** | **-27.35%** | [Capital, Reserves and Dividends](index=17&type=section&id=Capital%2C%20Reserves%20and%20Dividends) Share capital slightly decreased due to repurchased share cancellations, and no interim dividend was recommended to conserve cash for market challenges Share Capital Movements (thousand shares/thousand HKD) | Item | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Issued and fully paid ordinary shares (number of shares) | 2,673,089 | 2,696,547 | -0.87% | | Issued and fully paid ordinary shares (thousand HKD) | 5,389,760 | 5,410,638 | -0.38% | | Cancellation of repurchased shares (number of shares) | (23,458) | (9,450) | 148.23% | | Cancellation of repurchased shares (thousand HKD) | (20,878) | (9,881) | 111.29% | - The Board did not recommend declaring or paying an interim dividend for the six months ended June 30, 2025, to retain sufficient cash reserves to address market challenges[104](index=104&type=chunk) - For the six months ended June 30, 2025, the Company cancelled **23,458,000** shares purchased from the open market[49](index=49&type=chunk) [Management Discussion and Analysis](index=19&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's analysis of the company's financial performance, operational highlights, and strategic outlook for the reporting period [Overview](index=19&type=section&id=Overview) Revenue and net profit significantly decreased in H1 2025, while cash and cash equivalents increased, reflecting varied financial performance H1 2025 Key Financial Indicators Overview (million HKD) | Indicator | H1 2025 | H1 2024 | H2 2024 | | :--- | :--- | :--- | :--- | | Revenue | 12,672 | 19,854 | 19,312 | | Net Profit | 133 | 830 | 154 | | Total Assets (June 30, 2025/December 31, 2024) | 14,472 | N/A | 17,435 | | Total Equity (June 30, 2025/December 31, 2024) | 9,178 | N/A | 9,101 | | Cash and Cash Equivalents (June 30, 2025/December 31, 2024) | 2,435 | N/A | 1,996 | [Revenue Overview](index=20&type=section&id=Revenue%20Overview) Consolidated revenue decreased by 36.17% due to coking coal price drops, while overseas market share increased, despite a significant decline in coal product revenue - In H1 2025, the average price of coking coal was **USD 175/tonne**, a decrease of nearly **40.00%** compared to H1 2024, leading to a **42.65%** reduction in coal trading revenue[62](index=62&type=chunk) - Revenue generated by the Group outside China was approximately **HKD 4,153 million**, with its proportion of total revenue increasing from **24.74%** in H1 2024 to **32.78%** in H1 2025[64](index=64&type=chunk) - The supply chain trading business segment recorded revenue of approximately **HKD 10,870 million**, accounting for approximately **85.78%** of total revenue[66](index=66&type=chunk) [Market Environment and Total Revenue](index=20&type=section&id=Market%20Environment%20and%20Total%20Revenue) Coking coal prices fell by nearly 40% due to market conditions, leading to a 36.17% decrease in consolidated revenue - Coking coal prices remained under pressure, with an average price of **USD 175/tonne** in H1 2025, a decrease of nearly **40.00%** compared to H1 2024[62](index=62&type=chunk) - The Company recorded consolidated revenue of approximately **HKD 12,672 million**, a decrease of approximately **36.17%** from approximately **HKD 19,854 million** in H1 2024[62](index=62&type=chunk) [Geographical Revenue Distribution](index=21&type=section&id=Geographical%20Revenue%20Distribution) Overseas market revenue share increased to 32.78% as the Group pursued globalization, with top five customers contributing 39.62% of total revenue - In H1 2025, revenue generated by the Group outside China was approximately **HKD 4,153 million**, with its proportion of total revenue increasing from **24.74%** in H1 2024 to **32.78%** in H1 2025[64](index=64&type=chunk) - Revenue from the Group's top five customers accounted for **39.62%** of total revenue, compared to **47.22%** in H1 2024[65](index=65&type=chunk) [Supply Chain Trading Revenue](index=21&type=section&id=Supply%20Chain%20Trading%20Revenue) Supply chain trading revenue was HKD 10,870 million, with coal product revenue decreasing by 42.65% due to market pressure - The supply chain trading business segment recorded revenue of approximately **HKD 10,870 million**, accounting for approximately **85.78%** of total revenue[66](index=66&type=chunk) - Revenue from coal products decreased by approximately **42.65%** from approximately **HKD 16,858 million** in H1 2024 to approximately **HKD 9,668 million** in H1 2025[67](index=67&type=chunk) [Supply Chain Integrated Services Revenue](index=22&type=section&id=Supply%20Chain%20Integrated%20Services%20Revenue) Supply chain integrated services revenue decreased by 14.19%, with mining services achieving 18.69 million cubic meters in excavation volume - The supply chain integrated services segment recorded revenue of approximately **HKD 1,802 million**, a decrease of approximately **14.19%** compared to H1 2024[68](index=68&type=chunk) - Mining services achieved an excavation volume of approximately **18.69 million cubic meters**, revenue of approximately **HKD 623 million**, and gross profit of approximately **HKD 81 million**[68](index=68&type=chunk) [Business Vision](index=22&type=section&id=Business%20Vision) The Group aims to strengthen its market position and maintain market share through enhanced customer service, business expansion, and cost control - The Group will strengthen its industry position and maintain market share by deepening customer services, expanding value-added businesses, optimizing sales strategies, and strictly implementing internal cost control[70](index=70&type=chunk) [Cost of Sales and Purchases](index=23&type=section&id=Cost%20of%20Sales%20and%20Purchases) Cost of sales decreased by 33.58% due to falling coal prices, with total purchases declining, while hedging generated HKD 456 million in gross profit - Cost of sales was approximately **HKD 12,372 million**, a decrease of approximately **33.58%** compared to H1 2024, primarily due to falling coal transaction prices[71](index=71&type=chunk) Purchase Details of Different Commodity Categories (thousand tonnes/thousand HKD) | Product | H1 2025 Purchase Volume (thousand tonnes) | H1 2025 Purchase Amount (thousand HKD) | H1 2024 Purchase Volume (thousand tonnes) | H1 2024 Purchase Amount (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Coal | 7,385 | 7,208,249 | 8,719 | 13,881,556 | | Petroleum and petrochemical products | 141 | 1,015,160 | 82 | 739,631 | | Coke | 92 | 105,645 | – | – | | Iron ore | 93 | 66,740 | 110 | 95,992 | | **Total** | **7,711** | **8,395,794** | **8,911** | **14,717,179** | - The Company utilized futures to hedge risks, achieving a combined spot and futures gross profit of approximately **HKD 456 million**[73](index=73&type=chunk) [Administrative Expenses](index=24&type=section&id=Administrative%20Expenses) Administrative expenses decreased by 30.95% due to a significant reduction in staff costs Administrative Expenses Components (thousand HKD) | Item | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Staff costs | 172,481 | 284,726 | -39.42% | | Reversal of impairment loss provision for trade and other receivables | (5,779) | (9,748) | -40.71% | | Others | 123,337 | 145,063 | -14.98% | | **Total** | **290,039** | **420,041** | **-30.95%** | [Other Income](index=25&type=section&id=Other%20Income%20(MD%26A)) Other income increased by 81% due to gains from derivative hedging in the futures market - Other income was approximately **HKD 171 million**, primarily due to gains of approximately **HKD 156 million** generated by the Company in the futures market from using derivative instruments for hedging[76](index=76&type=chunk) [Net Finance Costs](index=25&type=section&id=Net%20Finance%20Costs%20(MD%26A)) Net finance costs increased by 21.43% due to unrealized exchange losses from intercompany balances caused by exchange rate fluctuations - Net finance costs were approximately **HKD 68 million**, an increase of approximately **21.43%** compared to H1 2024, primarily due to unrealized exchange losses from intercompany balances between domestic and overseas subsidiaries caused by exchange rate fluctuations[77](index=77&type=chunk) Net Finance Costs Components (thousand HKD) | Item | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Interest income | (31,010) | (28,677) | 8.13% | | Total interest expense | 55,988 | 63,327 | -11.59% | | Net foreign exchange losses | 35,789 | 10,373 | 245.02% | | Bank and other charges | 6,993 | 10,919 | -35.96% | | **Net Finance Costs** | **67,760** | **55,942** | **21.13%** | [Profit Attributable to Equity Holders and Earnings Per Share](index=26&type=section&id=Profit%20Attributable%20to%20Equity%20Holders%20and%20Earnings%20Per%20Share%20(MD%26A)) Profit attributable to equity holders significantly decreased by 82.63%, with basic and diluted earnings per share at HKD 0.051 - Profit attributable to equity holders was approximately **HKD 136 million**, a decrease of approximately **82.63%** compared to H1 2024[79](index=79&type=chunk) - For the six months ended June 30, 2025, basic and diluted earnings per share were both **HKD 0.051**[80](index=80&type=chunk) [Inventories](index=26&type=section&id=Inventories%20(MD%26A)) Inventories decreased by 72.95% as the Group focused on accelerating turnover and reducing levels to enhance capital efficiency Inventories Amount (thousand HKD) | Item | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Coal | 461,452 | 1,950,968 | -76.35% | | Others | 88,259 | 81,938 | 7.71% | | **Total** | **549,711** | **2,032,906** | **-72.95%** | - The Group accelerated inventory turnover and reduced inventory levels, thereby improving capital efficiency[82](index=82&type=chunk) [Debt and Liquidity](index=27&type=section&id=Debt%20and%20Liquidity) Total bank loans decreased, gearing ratio improved, but EBITDA/interest and debt/EBITDA ratios deteriorated due to reduced profit - The Group's total bank loans were approximately **HKD 1,663 million**, with annual interest rates ranging from **0.65%** to **5.91%**[83](index=83&type=chunk) - The gearing ratio decreased to **36.58%** (December 31, 2024: **47.80%**)[83](index=83&type=chunk) Debt and Liquidity Ratios | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | EBITDA/Interest | 8.29 | 17.43 | | Debt/EBITDA | 4.41 | 2.20 | [Working Capital](index=27&type=section&id=Working%20Capital) Working capital metrics improved with a reduced cash conversion cycle of 12 days, while various assets secure bank loans and bills payable Working Capital Turnover Days | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Days Sales Outstanding | 33 | 31 | | Days Payable Outstanding | 41 | 42 | | Inventory Days | 20 | 31 | | **Overall Cash Conversion Cycle** | **12** | **20** | - Bank loans and bills payable are secured by various assets, including credit guarantees, restricted bank deposits, bills receivable, property, plant and equipment, and land use rights[87](index=87&type=chunk)[88](index=88&type=chunk) [Cash Flow and Capital Management](index=29&type=section&id=Cash%20Flow%20and%20Capital%20Management) Operating cash inflow significantly increased due to inventory management, while investing outflow decreased and financing outflow increased, supported by prudent capital management - Net cash inflow from operating activities was approximately **HKD 1,533 million**, a year-on-year increase of **304.49%**, primarily due to accelerated cash recovery from inventory reduction and faster turnover[89](index=89&type=chunk) - Net cash outflow from investing activities was approximately **HKD 127 million**, a year-on-year decrease of **83.02%**, primarily invested in mining equipment, logistics park, and coal washing plant construction[89](index=89&type=chunk) - Net cash outflow from financing activities was approximately **HKD 997 million**, a year-on-year increase of **163.06%**, primarily used for loan repayments, dividend payments, and finance lease repayments[90](index=90&type=chunk) - The Group adopts a prudent and conservative capital management approach, managing capital allocation, reducing inventory and receivables levels, collecting customer prepayments, and using foreign exchange derivative instruments to hedge against exchange rate fluctuation risks[91](index=91&type=chunk) [Risk Factors](index=30&type=section&id=Risk%20Factors) This section outlines key risks including commodity price volatility, reliance on the steel industry, liquidity, currency fluctuations, and fair value measurement [Commodity Price Volatility Risk](index=31&type=section&id=Commodity%20Price%20Volatility%20Risk) Commodity prices are subject to uncontrollable factors, and their volatility may significantly impact the Group's profitability and financial position - Commodity market prices are volatile and influenced by numerous factors beyond our control, including international supply and demand, consumer demand levels, global economic trends, global or regional political events, and international incidents[93](index=93&type=chunk) [Reliance on Steel Industry Risk](index=31&type=section&id=Reliance%20on%20Steel%20Industry%20Risk) Revenue is highly dependent on coking coal demand from the steel industry, making the Group vulnerable to its business cycles and alternative supplies - The Group's revenue primarily derives from commodity trading services for coking coal products and is highly dependent on the demand for coking coal from steel mills and coking plants in China and international markets[94](index=94&type=chunk) [Liquidity Risk](index=31&type=section&id=Liquidity%20Risk) The Group manages liquidity risk by monitoring needs and complying with covenants to ensure sufficient cash and committed funding - The Group adopts a policy of regularly monitoring liquidity requirements and complying with loan covenants, ensuring sufficient cash reserves and committed funding from major financial institutions[95](index=95&type=chunk) [Currency Risk](index=32&type=section&id=Currency%20Risk) RMB/USD exchange rate fluctuations pose a risk to net assets and profitability, despite hedging strategies in place - Over **56.97%** of the Group's revenue is denominated in RMB, and over **59.25%** of procurement costs and certain operating expenses are denominated in USD[96](index=96&type=chunk) - The Group has largely hedged the exchange rate risk of its commodity trading business by adopting appropriate exchange rate management policies and derivative hedging instruments[96](index=96&type=chunk) [Fair Value Measurement Risk](index=32&type=section&id=Fair%20Value%20Measurement%20Risk) Valuation of certain financial assets and liabilities measured at fair value may involve uncertainties - Certain financial assets and liabilities of the Group are measured at fair value[97](index=97&type=chunk) [Human Resources](index=32&type=section&id=Human%20Resources) This section details the Group's employee profile, including functional and educational distribution, and outlines its training initiatives [Employee Profile](index=32&type=section&id=Employee%20Profile) The Group had 2,384 full-time employees as of June 30, 2025, with 87% in frontline operations, adhering to performance-based compensation and legal compliance - As of June 30, 2025, the Group had **2,384** full-time employees (excluding **894** outsourced staff of its PRC subsidiaries)[99](index=99&type=chunk) Employee Functional Distribution | Function | Number of Employees | Percentage | | :--- | :--- | :--- | | Management, Administration and Finance | 188 | 8% | | Sales and Marketing | 116 | 5% | | Frontline Production and Transportation Personnel | 2,080 | 87% | | **Total** | **2,384** | **100%** | Employee Educational Background | Education Level | Number of Employees | Percentage | | :--- | :--- | :--- | | Master's degree and above | 145 | 6% | | Bachelor's degree | 715 | 30% | | Junior college | 190 | 8% | | Secondary school and below | 1,334 | 56% | | **Total** | **2,384** | **100%** | [Training](index=34&type=section&id=Training) The Group conducted 1,699 hours of internal and external training for 12,968 participants, covering safety, management, and professional skills - For the six months ended June 30, 2025, the Group conducted various internal and external training courses, totaling **1,699 hours** with **12,968** participants[100](index=100&type=chunk) Training Course Statistics | Training Course | Hours | Participants | | :--- | :--- | :--- | | Safety Training | 313 | 8,946 | | Management and Leadership Training | 339 | 2,109 | | Professional Skills Training | 1,047 | 1,913 | | **Total** | **1,699** | **12,968** | [Health, Safety and Environment](index=34&type=section&id=Health%2C%20Safety%20and%20Environment) The Group prioritizes employee health, safety, and environmental protection, reporting no major incidents in H1 2025 - The Group places utmost importance on employee health and safety and environmental protection[102](index=102&type=chunk) - In the first half of 2025, no major incidents, environmental accidents, or occupational health and safety accidents occurred[102](index=102&type=chunk) [Corporate Governance and Compliance](index=34&type=section&id=Corporate%20Governance%20and%20Compliance) This section details the company's adherence to corporate governance codes, policies on securities transactions, and interim results disclosure [Purchase, Sale or Redemption of the Company's Listed Securities](index=34&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) The Company had 2,673,088,962 issued shares, repurchased and cancelled 23,458,000 shares, and held 3,306,000 as treasury shares - As of June 30, 2025, the Company had a total of **2,673,088,962** issued shares[103](index=103&type=chunk) - The Company repurchased and cancelled **23,458,000** shares in the first half of 2025[49](index=49&type=chunk)[103](index=103&type=chunk) - As of June 30, 2025, **3,306,000** shares were held by the Company as treasury shares[103](index=103&type=chunk) [Dividend Policy](index=35&type=section&id=Dividend%20Policy) No interim dividend was recommended to conserve cash reserves for challenging market conditions and operational flexibility - The Board did not recommend declaring or paying an interim dividend for the six months ended June 30, 2025[104](index=104&type=chunk) - Management believes that sufficient cash reserves should be retained to cope with changing market conditions and maintain greater flexibility for second-half operations[104](index=104&type=chunk) [Compliance with the Corporate Governance Code](index=35&type=section&id=Compliance%20with%20the%20Corporate%20Governance%20Code) The Company complied with the Corporate Governance Code, with the Chairman also serving as CEO, an arrangement deemed to provide consistent leadership and checks and balances - The Company has fully complied with the code provisions set out in Appendix C1 Part 2 of the Listing Rules, with the exception of a deviation from code provision C.2.1 (separation of the roles of Chairman and Chief Executive Officer)[105](index=105&type=chunk) - Ms. Cao Xinyi serves as both the Chairman of the Board and Chief Executive Officer, an arrangement the Board believes provides consistent leadership and an appropriate structure of checks and balances[105](index=105&type=chunk) [Standard Code for Securities Transactions by Directors](index=36&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company adopted and all Directors complied with the Standard Code for Securities Transactions by Directors of Listed Issuers - The Company adopted the 'Standard Code for Securities Transactions by Directors of Listed Issuers', and all Directors confirmed compliance with the code during the reporting period[106](index=106&type=chunk) [Interim Results Review and Disclosure](index=36&type=section&id=Interim%20Results%20Review%20and%20Disclosure) The audit committee and KPMG reviewed the interim results, which were subsequently published on the Company's and HKEX websites - The Company's audit committee has reviewed the Group's interim results for the six months ended June 30, 2025[107](index=107&type=chunk) - The interim results are unaudited but have been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[107](index=107&type=chunk) - This interim results announcement was published on the Company's website (www.e-comm.com) and the HKEX website (www.hkexnews.hk)[108](index=108&type=chunk)

[Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents Goldwind Technology Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025, providing an overview of the company's financial performance and position Condensed Consolidated Income Statement and Statement of Comprehensive Income (For the Six Months Ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 28,493,824 | 20,143,154 | | Cost of sales | (24,142,783) | (16,449,413) | | Gross profit | 4,351,041 | 3,693,741 | | Other income and gains, net | 1,074,032 | 1,274,599 | | Selling and distribution expenses | (659,394) | (604,813) | | Administrative expenses | (1,928,160) | (1,806,843) | | Impairment losses on financial and contract assets, net | (121,822) | (125,849) | | Other operating expenses | (141,933) | (108,219) | | Finance costs | (531,180) | (617,718) | | Profit before tax | 2,107,383 | 1,844,931 | | Income tax expense | (443,666) | (408,939) | | Profit for the period | 1,663,717 | 1,435,992 | | Profit attributable to equity holders of the Company | 1,487,542 | 1,386,844 | | Profit attributable to non-controlling interests | 176,175 | 49,148 | | Basic and diluted earnings per share (RMB) | 0.34 | 0.32 | Condensed Consolidated Statement of Financial Position (As at June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Total non-current assets | 89,866,209 | 86,623,398 | | Total current assets | 71,687,065 | 68,600,887 | | Total current liabilities | 73,585,152 | 71,873,940 | | Total non-current liabilities | 44,481,646 | 42,923,264 | | Net assets | 43,486,476 | 40,427,081 | | Equity attributable to equity holders of the Company | 39,769,743 | 38,529,306 | | Non-controlling interests | 3,716,733 | 1,897,775 | Condensed Consolidated Cash Flow Statement (For the Six Months Ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net cash flows used in operating activities | (2,949,385) | (8,150,780) | | Net cash flows used in investing activities | (1,836,801) | (836,625) | | Net cash flows from financing activities | 1,904,796 | 4,085,818 | | Net decrease in cash and cash equivalents | (2,881,390) | (4,901,587) | | Cash and cash equivalents at end of period | 8,167,307 | 7,711,708 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section details the basis of preparation, accounting policy changes, operating segment information, revenue composition, expenses, and balance sheet items, providing supplementary explanations for understanding the financial statements [1. Company and Group Information](index=10&type=section&id=1.%20Company%20and%20Group%20Information) This section provides an overview of Goldwind Science & Technology Co., Ltd.'s establishment, listing details, and the primary business activities of the group - Goldwind Science & Technology Co., Ltd. was established in Xinjiang, China, on March 26, 2001, with A-shares and H-shares listed in 2007 and 2010, respectively[14](index=14&type=chunk) - The Group's main activities include R&D, manufacturing, and sales of wind turbine generator sets and components, providing wind farm construction, post-warranty services, asset management, and water treatment plant operations[19](index=19&type=chunk) [2. Basis of Preparation and Changes in Accounting Policies](index=10&type=section&id=2%20Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies) This section outlines the basis for preparing the condensed consolidated financial statements and any changes in accounting policies, noting their immaterial impact - The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and Appendix 16 of the Hong Kong Stock Exchange Listing Rules[16](index=16&type=chunk) - Accounting policies are consistent with the 2024 annual financial statements, except for new and revised standards effective from January 1, 2025, which have no significant impact on the financial position or performance for the current and prior periods[17](index=17&type=chunk)[18](index=18&type=chunk) [3. Operating Segment Information](index=11&type=section&id=3.%20Operating%20Segment%20Information) This section provides a breakdown of the group's revenue and performance by operating segment and geographical location for the reporting period Segment Revenue (For the Six Months Ended June 30) | Segment | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Wind turbine generator sets manufacturing and sales | 21,852,284 | 12,767,677 | | Wind farm development | 3,171,937 | 4,401,088 | | Wind power services | 2,896,207 | 2,374,091 | | Others | 573,396 | 600,298 | | **Total** | **28,493,824** | **20,143,154** | Segment Results (For the Six Months Ended June 30) | Segment | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Wind turbine generator sets manufacturing and sales | 115,498 | (584,584) | | Wind farm development | 1,788,587 | 2,428,419 | | Wind power services | 550,561 | 343,583 | | Others | 448,885 | 851,336 | | **Total** | **2,413,354** | **2,217,389** | Sales to External Customers (By Geographical Location) | Region | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | China | 20,117,354 | 15,367,226 | | Other countries | 8,376,470 | 4,775,928 | | **Total** | **28,493,824** | **20,143,154** | [4. Revenue](index=15&type=section&id=4.%20Revenue) This section details the group's revenue sources and the recognition policies for various performance obligations, including wind turbine sales, wind farm development, and services Revenue Stream Analysis (For the Six Months Ended June 30) | Revenue Stream | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Sales of wind turbine generator sets and components | 21,852,284 | 12,767,677 | | Wind farm development | 3,171,937 | 4,401,088 | | Wind power services | 2,803,156 | 2,254,764 | | Others | 573,396 | 600,298 | | Total lease income | 93,051 | 119,327 | | **Total** | **28,493,824** | **20,143,154** | - Performance obligations for wind turbine sales and power station product sales are satisfied when control of the goods is transferred[31](index=31&type=chunk) - Performance obligations for wind farm development are typically recognized when electricity is transmitted, measured based on the amount of wind power transmitted and fixed tariff rates[32](index=32&type=chunk) - Performance obligations for wind power services, including service-type warranties and construction services, are recognized over the service period or based on the stage of completion[33](index=33&type=chunk) [5. Other Income and Gains, Net](index=18&type=section&id=5.%20Other%20Income%20and%20Gains,%20Net) This section presents a detailed breakdown of other income and gains, net, and explains the reasons for period-over-period changes Other Income and Gains, Net (For the Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank interest income | 225,209 | 245,260 | | Government grants and deferred income | 158,483 | 78,448 | | VAT refunds | 112,102 | 82,337 | | Gain on disposal of interests in subsidiaries | 143,148 | 137,094 | | Investment income from loss of significant influence or disposal of joint ventures/associates | 9,174 | 824,311 | | Fair value changes of listed equity investments | 350,311 | (115,100) | | **Total** | **1,074,032** | **1,274,599** | - Other income and gains, net, decreased by **15.74%** year-on-year, primarily due to reduced investment gains from disposal of joint ventures, increased fair value losses on unlisted equity investments, and decreased technical service income[36](index=36&type=chunk)[161](index=161&type=chunk)[162](index=162&type=chunk) [6. Profit Before Tax](index=19&type=section&id=6.%20Profit%20Before%20Tax) This section itemizes the components deducted from or credited to profit before tax, including costs of sales, depreciation, amortization, and staff welfare expenses Items Deducted From/(Credited to) Profit Before Tax (For the Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of inventories sold | 20,129,632 | 12,269,398 | | Cost of wind power generation | 1,349,074 | 1,916,923 | | Cost of wind power services | 2,245,075 | 1,785,942 | | Depreciation of property, plant and equipment | 1,396,212 | 1,224,767 | | Depreciation of right-of-use assets | 111,156 | 92,584 | | Amortization of other intangible assets | 294,795 | 249,241 | | Net impairment of trade receivables | 118,526 | 110,670 | | Net impairment of inventories | 19,175 | (18,858) | | Total staff welfare expenses | 2,092,794 | 2,061,107 | | Total research and development costs | 906,215 | 887,953 | [7. Finance Costs](index=21&type=section&id=7.%20Finance%20Costs) This section details the group's finance costs, including interest on bank loans and lease liabilities, and explains the reasons for period-over-period changes Finance Costs (For the Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest on bank and other borrowings | 632,055 | 700,745 | | Interest on lease liabilities | 63,096 | 71,782 | | Less: Interest capitalized | (163,971) | (154,809) | | **Total** | **531,180** | **617,718** | - Finance costs decreased by **14.01%** year-on-year, mainly due to reduced interest on bank and other borrowings[39](index=39&type=chunk)[167](index=167&type=chunk) [8. Income Tax Expense](index=21&type=section&id=8.%20Income%20Tax%20Expense) This section outlines the group's income tax expenses, including current and deferred tax, and details the preferential tax policies enjoyed by the company and its subsidiaries - The Company and ten subsidiaries are recognized as "High-New Technology Enterprises" and enjoy a preferential tax rate of **15%**[40](index=40&type=chunk) - Some Chinese subsidiaries engaged in public infrastructure projects enjoy a "three-year exemption and three-year half reduction" corporate income tax incentive[40](index=40&type=chunk) - Certain Chinese subsidiaries operating in western regions and participating in government-supported projects are subject to a **15%** preferential tax rate[40](index=40&type=chunk) Income Tax Expense (For the Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current | 705,626 | 546,108 | | Deferred tax | (261,960) | (137,169) | | **Tax expense for the period** | **443,666** | **408,939** | - Income tax expense increased by **8.49%** year-on-year, primarily due to an increase in taxable profit for the period[43](index=43&type=chunk)[168](index=168&type=chunk) [9. Dividends](index=22&type=section&id=9.%20Dividends) This section reports on the dividends approved and paid for the previous fiscal year and the board's decision regarding interim dividends for the current reporting period - The 2024 final cash dividend of **RMB 1.4** per 10 shares (tax inclusive), totaling **591,114 thousand RMB**, was approved by shareholders on June 25, 2025[44](index=44&type=chunk) - The Board did not recommend the payment of a dividend for the six months ended June 30, 2025 (nil for the same period in 2024)[44](index=44&type=chunk) [10. Earnings Per Share Attributable to Ordinary Equity Holders of the Company](index=22&type=section&id=10.%20Earnings%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Company) This section provides the calculation of basic and diluted earnings per share attributable to the company's ordinary equity holders for the reporting period Earnings Per Share Calculation (For the Six Months Ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the Company | 1,487,542 | 1,386,844 | | Less: Distribution related to perpetual medium-term notes | (56,656) | (40,499) | | Profit for the purpose of basic earnings per share | 1,430,886 | 1,346,345 | | Weighted average number of ordinary shares in issue (thousands) | 4,182,839 | 4,225,068 | | **Basic earnings per share (RMB)** | **0.34** | **0.32** | | **Diluted earnings per share (RMB)** | **0.34** | **0.32** | [11. Property, Plant and Equipment](index=23&type=section&id=11.%20Property,%20Plant%20and%20Equipment) This section details the changes in the group's property, plant and equipment, including additions, disposals, and depreciation expenses for the reporting period Changes in Property, Plant and Equipment (As at June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Beginning of period/year | 45,973,875 | 41,805,332 | | Additions | 2,865,401 | 9,248,511 | | Disposals | (37,520) | (230,401) | | Depreciation expense for the period/year | (1,396,212) | (2,673,869) | | Disposal of subsidiaries | (433,664) | (1,598,950) | | **End of period/year** | **47,004,585** | **45,973,875** | [12. Leases](index=24&type=section&id=12.%20Leases) This section presents the changes in the group's right-of-use assets and lease liabilities, including new leases, depreciation, and interest recognized Changes in Right-of-Use Assets (As at June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Beginning of period/year | 3,030,535 | 3,192,509 | | New leases | 1,193,921 | 556,803 | | Depreciation expense for the period/year | (111,156) | (181,586) | | **End of period/year** | **3,991,448** | **3,030,535** | Changes in Lease Liabilities (As at June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Beginning of period/year | 4,588,993 | 5,231,674 | | New leases | 947,752 | 3,095,970 | | Interest recognized during the period/year | 63,096 | 223,826 | | Payments | (475,324) | (986,045) | | **End of period/year** | **5,056,259** | **4,588,993** | | Current portion | 384,556 | 372,878 | | Non-current portion | 4,671,703 | 4,216,115 | [13. Equity Investments Designated at Fair Value Through Other Comprehensive Income](index=25&type=section&id=13.%20Equity%20Investments%20Designated%20at%20Fair%20Value%20Through%20Other%20Comprehensive%20Income) This section reports on the group's equity investments designated at fair value through other comprehensive income, specifically non-listed equity investments Equity Investments Designated at Fair Value Through Other Comprehensive Income (As at June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Unlisted equity investments | 156,203 | 164,996 | [14. Financial Assets at Fair Value Through Profit or Loss](index=25&type=section&id=14.%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) This section details the group's financial assets measured at fair value through profit or loss, including listed and unlisted equity investments, partnership investments, and wealth management products Financial Assets at Fair Value Through Profit or Loss (As at June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Listed equity investments | 1,678,197 | 1,754,215 | | Unlisted equity investments | 1,658,691 | 1,667,801 | | Partnership investments | 120,000 | 120,000 | | Wealth management products | 790,000 | 1,000,000 | | Others | 23,970 | 20,000 | | **Total** | **4,270,858** | **4,562,016** | | Non-current portion | (3,480,858) | (3,562,016) | | Current portion | 790,000 | 1,000,000 | - Wealth management products are mandatorily classified as financial assets at fair value through profit or loss because their contractual cash flows are not solely payments of principal and interest[51](index=51&type=chunk) [15. Other Non-Current Financial Assets](index=26&type=section&id=15.%20Other%20Non-Current%20Financial%20Assets) This section presents the group's other non-current financial assets, primarily debt investments, along with their impairment provisions Other Non-Current Financial Assets (As at June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Debt investments | 194,582 | 205,102 | | Impairment allowance | (320) | (329) | | **Total** | **194,262** | **204,773** | | Non-current portion | (192,625) | (200,345) | | Current portion | 1,637 | 4,428 | [16. Deferred Tax](index=27&type=section&id=16.%20Deferred%20Tax) This section provides a breakdown of the group's deferred tax assets and liabilities, including those related to asset impairment, tax losses, and fair value adjustments Deferred Income Tax Assets (As at June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Asset impairment provisions | 639,428 | 644,373 | | Tax losses | 2,167,519 | 2,048,600 | | Provisions and accrued items | 2,143,319 | 2,040,920 | | **Total** | **6,504,019** | **6,251,106** | Deferred Income Tax Liabilities (As at June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Fair value of identifiable assets exceeding carrying value of acquired subsidiaries | 754,306 | 788,488 | | Asset depreciation | 508 | 538 | | Fair value adjustments of equity investments recognized in other comprehensive income/profit or loss | 542,894 | 529,705 | | **Total** | **1,712,827** | **1,696,648** | Group Deferred Income Tax Assets and Liabilities After Offsetting (As at June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Deferred income tax assets | 6,449,251 | 6,136,494 | | Deferred income tax liabilities | (1,658,059) | (1,582,036) | [17. Trade and Bills Receivables](index=31&type=section&id=17.%20Trade%20and%20Bills%20Receivables) This section details the group's trade and bills receivables, including impairment provisions and an aging analysis, and notes the reclassification of some bank acceptance bills Trade and Bills Receivables (As at June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables | 35,869,428 | 32,840,414 | | Bills receivables | 1,435,960 | 2,437,112 | | Impairment allowance | (2,141,650) | (2,014,948) | | **Total** | **35,163,738** | **33,262,578** | - The Group reclassified some bank acceptance bills as financial assets at fair value through other comprehensive income, but they are still presented as trade and bills receivables[58](index=58&type=chunk) Aging Analysis of Trade and Bills Receivables (Net of Allowance, As at June 30) | Aging | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Within six months | 17,423,331 | 16,526,290 | | Six months to one year | 4,530,334 | 4,531,854 | | One to two years | 6,368,065 | 6,353,032 | | Two to three years | 3,393,645 | 2,832,886 | | Over three years | 3,448,363 | 3,018,516 | | **Total** | **35,163,738** | **33,262,578** | [18. Financial Receivables](index=33&type=section&id=18.%20Financial%20Receivables) This section outlines the group's financial receivables, primarily from service concession arrangements and finance lease receivables, along with their impairment provisions Financial Receivables (As at June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Receivables under service concession arrangements | 3,779,474 | 3,983,349 | | Finance lease receivables | 3,120,978 | 3,240,376 | | Impairment allowance | (82,508) | (83,676) | | **Total** | **7,156,380** | **7,420,224** | | Non-current portion | (6,771,503) | (7,043,030) | | Current portion | 384,877 | 377,194 | - Receivables under service concession arrangements primarily arise from concession contracts for construction services and water treatment plant operations[60](index=60&type=chunk) - Finance lease receivables primarily arise from finance lease contracts providing leased equipment to lessees[61](index=61&type=chunk) [19. Prepayments, Other Receivables and Other Assets](index=34&type=section&id=19.%20Prepayments,%20Other%20Receivables%20and%20Other%20Assets) This section details the group's prepayments, other receivables, and other assets, including advances to suppliers, VAT credits, and deposits, along with impairment provisions Prepayments, Other Receivables and Other Assets (As at June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Advances to suppliers | 1,125,062 | 2,193,175 | | Prepayments | 2,429,630 | 766,214 | | VAT input tax credit | 4,709,072 | 4,151,810 | | Deposits and other receivables | 2,207,208 | 2,732,427 | | Impairment allowance | (264,130) | (259,402) | | **Total** | **10,206,842** | **9,584,224** | | Non-current portion | (4,828,622) | (3,776,077) | | Current portion | 5,378,220 | 5,808,147 | [20. Derivative Financial Instruments](index=35&type=section&id=20.%20Derivative%20Financial%20Instruments) This section presents the group's derivative financial instruments, including foreign exchange forward contracts and call options, categorized as assets and liabilities Derivative Financial Instrument Assets (As at June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Foreign exchange forward contracts - designated hedges | 8,526 | 37,382 | | **Total** | **8,526** | **37,382** | | Current portion | 8,526 | 36,452 | Derivative Financial Instrument Liabilities (As at June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Foreign exchange forward contracts - designated hedges | 139,155 | 39,069 | | Call options | 8,854 | 13,320 | | **Total** | **148,009** | **52,389** | | Non-current portion | (36,361) | (21,489) | | Current portion | 111,648 | 30,900 | [21. Inventories](index=36&type=section&id=21.%20Inventories) This section details the composition of the group's inventories, including raw materials, work-in-progress, finished goods, and power station costs, noting capitalized interest Inventory Composition (As at June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Raw materials | 6,126,775 | 4,650,108 | | Work-in-progress, finished goods and semi-finished goods | 6,446,696 | 4,552,648 | | Power station costs | 6,329,131 | 5,612,468 | | **Total** | **18,929,245** | **14,827,632** | - Capitalized interest included in power station costs amounted to **39,432 thousand RMB** (2024: **87,271 thousand RMB**), with an interest capitalization rate ranging from **2.51%** to **3.50%**[68](index=68&type=chunk) [22. Cash and Cash Equivalents and Pledged Deposits](index=37&type=section&id=22.%20Cash%20and%20Cash%20Equivalents%20and%20Pledged%20Deposits) This section provides a breakdown of the group's cash and cash equivalents and pledged deposits, categorized by type and currency Cash and Cash Equivalents and Pledged Deposits (As at June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Cash and bank balances | 7,814,008 | 11,512,606 | | Time deposits | 1,771,500 | 106,798 | | Less: Pledged deposits | (846,702) | (486,500) | | **Cash and cash equivalents in condensed consolidated statement of financial position** | **8,738,806** | **11,132,904** | | Cash and cash equivalents in condensed consolidated cash flow statement | 8,167,307 | 11,030,276 | | Pledged deposits | 846,702 | 486,500 | Cash and Cash Equivalents and Pledged Deposits (By Currency, As at June 30) | Currency | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | RMB | 6,214,780 | 9,568,652 | | USD | 1,409,227 | 739,968 | | EUR | 758,736 | 406,636 | | AUD | 303,937 | 124,013 | | HKD | 153,362 | 209,531 | | Argentine Peso | 270,272 | 148,352 | | Other currencies | 475,194 | 422,252 | | **Total** | **9,585,508** | **11,619,404** | [23. Contract Assets](index=38&type=section&id=23.%20Contract%20Assets) This section details the group's contract assets, primarily from wind turbine warranty deposits, construction services, and concession arrangements, along with their recognition and reclassification policies Sources of Contract Assets (As at June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Wind turbine sales warranty deposits | 6,255,407 | 5,883,414 | | Construction services | 994,375 | 1,146,251 | | Concession services arrangements | 296,629 | 97,690 | | Impairment | (46,676) | (47,065) | | **Total** | **7,499,735** | **7,080,290** | | Non-current portion | (6,054,421) | (5,415,238) | | Current portion | 1,445,314 | 1,665,052 | - Wind turbine sales warranty deposits typically mature 2 to 5 years after the completion of wind turbine commissioning[70](index=70&type=chunk) - Contract assets for construction services are initially recognized when construction services are provided and revenue is recognized, then reclassified as trade receivables upon customer acceptance of billing settlement[71](index=71&type=chunk) [24. Trade and Bills Payables](index=39&type=section&id=24.%20Trade%20and%20Bills%20Payables) This section presents the group's trade and bills payables, including their typical settlement terms and the due dates for warranty payables Trade and Bills Payables (As at June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade payables | 32,205,881 | 31,193,698 | | Bills payables | 7,969,530 | 10,304,613 | | **Total** | **40,175,411** | **41,498,311** | | Non-current liabilities portion | (714,103) | (719,442) | | Current liabilities portion | 39,461,308 | 40,778,869 | - Trade and bills payables are non-interest bearing and generally settled within 180 days, while warranty payables typically mature 3 to 5 years after goods delivery[73](index=73&type=chunk) [25. Other Payables and Accruals](index=40&type=section&id=25.%20Other%20Payables%20and%20Accruals) This section details the group's other payables and accruals, including contract liabilities, accrued salaries, other taxes payable, and dividends payable Other Payables and Accruals (As at June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Contract liabilities | 20,250,268 | 18,181,188 | | Accrued salaries, wages and benefits | 720,814 | 1,015,372 | | Other taxes payable | 253,502 | 364,829 | | Dividends payable | 688,980 | 88,743 | | Others | 1,700,248 | 1,484,223 | | **Total** | **23,626,382** | **21,144,824** | | Non-current liabilities portion | (304,873) | (249,268) | | Current liabilities portion | 23,321,509 | 20,895,556 | [26. Interest-Bearing Bank and Other Borrowings](index=41&type=section&id=26.%20Interest-Bearing%20Bank%20and%20Other%20Borrowings) This section provides a breakdown of the group's interest-bearing bank and other borrowings, distinguishing between current and non-current portions Interest-Bearing Bank and Other Borrowings (As at June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | **Current portion** | | | | Short-term bank loans | 1,462,544 | 1,576,164 | | Current portion of long-term bank loans | 1,783,754 | 1,216,775 | | Lease liabilities | 384,556 | 372,878 | | Payables for sale and leaseback | 79,012 | 156,608 | | **Non-current portion** | | | | Long-term bank loans | 30,017,009 | 29,505,756 | | Payables for sale and leaseback | 2,758,373 | 2,510,672 | | Lease liabilities | 4,671,703 | 4,216,115 | | **Total** | **43,673,389** | **42,049,203** | [27. Share Capital](index=42&type=section&id=27.%20Share%20Capital) This section details the composition of the company's share capital, including the number and par value of A shares and H shares Share Capital Composition (As at June 30) | Share Type | 2025 Number of Shares (thousands) | 2025 Par Value (RMB thousands) | 2024 Number of Shares (thousands) | 2024 Par Value (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | A Shares (par value RMB 1.00 per share) | 3,451,496 | 3,451,496 | 3,451,496 | 3,451,496 | | H Shares (par value RMB 1.00 per share) | 773,572 | 773,572 | 773,572 | 773,572 | | **Total** | **4,225,068** | **4,225,068** | **4,225,068** | **4,225,068** | [28. Share-Based Payments](index=42&type=section&id=28.%20Share-Based%20Payments) This section describes the company's restricted share incentive plan, including the approval, grant details, and recognized expenses for the reporting period - The company approved a restricted share incentive plan on November 19, 2024, involving the repurchase of A-shares as restricted shares, totaling **442,460 thousand RMB**[79](index=79&type=chunk) - On December 13, 2024, **39,400,000** restricted shares were granted at an issue price of **RMB 4.09** per share[79](index=79&type=chunk) - As of June 30, 2025, the Group recognized expenses related to the incentive plan amounting to **72,745 thousand RMB**[80](index=80&type=chunk) [29. Disposal of Subsidiaries](index=43&type=section&id=29.%20Disposal%20of%20Subsidiaries) This section lists the subsidiaries disposed of during the reporting period, including their disposal dates, equity re-establishment ratios, and the total consideration received Subsidiaries Disposed of During the Period (As at June 30) | Company Name | Disposal Date | Equity Re-establishment Ratio | | :--- | :--- | :--- | | Jimunai Runjiaying Wind Power Co., Ltd. | January 1, 2025 | 51% | | Mulei Goldwind Tianrun Wind Power Co., Ltd. | April 30, 2025 | 100% | | Shanghai Hurong New Energy Co., Ltd. | May 14, 2025 | 100% | | Taicang Juyi Technology Innovation Consulting Co., Ltd. | June 30, 2025 | 100% | | Glad Precision Technology (Jiangsu) Co., Ltd. | June 27, 2025 | Not applicable | - The total consideration for the disposal of subsidiaries during the period was **352,142 thousand RMB**, with net cash inflow of **219,157 thousand RMB**[83](index=83&type=chunk) [30. Contingent Liabilities](index=44&type=section&id=30.%20Contingent%20Liabilities) This section details the group's contingent liabilities, including guarantees issued and pending lawsuits, and their respective amounts Contingent Liabilities (As at June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Guarantees issued | 33,792,428 | 24,537,869 | | Guarantees provided to banks for loans: associates | 161,519 | 170,042 | | Guarantees provided to banks for loans: an independent third party | 126,036 | 129,348 | | **Total** | **34,079,983** | **24,837,259** | - The Group is a defendant in pending lawsuits totaling **2,789,893 thousand RMB** (December 31, 2024: **2,450,965 thousand RMB**)[86](index=86&type=chunk) [31. Commitments](index=45&type=section&id=31.%20Commitments) This section outlines the group's capital commitments, primarily related to property, plant and equipment, and land use rights Capital Commitments (As at June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Property, plant and equipment and land use rights | 10,161,033 | 6,936,784 | | **Total** | **10,161,033** | **6,936,784** | [32. Related Party Transactions](index=46&type=section&id=32.%20Related%20Party%20Transactions) This section provides details of significant transactions and outstanding balances with related parties, including associates, joint ventures, and key management personnel compensation Significant Transactions with Related Parties (For the Six Months Ended June 30) | Related Party Type | 2025 Transaction Amount (RMB thousands) | 2024 Transaction Amount (RMB thousands) | | :--- | :--- | :--- | | Beneficiary shareholders of the Company | - | 5,161 | | Associates | 418,940 | 482,459 | | Joint ventures | 68,945 | 65,426 | - The Directors believe that the Group's transactions with related parties were conducted at arm's length prices and in accordance with general commercial terms[89](index=89&type=chunk)[90](index=90&type=chunk) Outstanding Balances with Related Parties (As at June 30) | Related Party Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade and bills receivables: beneficiary shareholders | 908 | 1,963 | | Trade and bills receivables: joint ventures | 56,124 | 35,923 | | Trade and bills receivables: associates | 8,138 | 29,379 | | Prepayments, other receivables and other assets: joint ventures | 845,539 | 584,855 | | Prepayments, other receivables and other assets: associates | 25,412 | 36,770 | | Trade and bills payables: associates | 282,240 | 629,817 | | Other payables and accruals: joint ventures | 8,733 | 9,071 | | Other payables and accruals: associates | 2,989 | 4,215 | Key Management Personnel Compensation (For the Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Short-term employee benefits | 11,266 | 11,099 | | Share-based payment expenses | 7,350 | - | | Contributions to retirement benefit plans | 400 | 383 | | **Total** | **19,016** | **11,482** | [33. Financial Risk Management and Financial Instruments](index=48&type=section&id=33.%20Financial%20Risk%20Management%20and%20Financial%20Instruments) This section describes the group's exposure to and management of financial risks, including interest rate, foreign exchange, credit, and liquidity risks, and the fair value measurement hierarchy of financial instruments - The Group faces major financial risks including fair value and cash flow interest rate risk, foreign exchange risk, credit risk, and liquidity risk[93](index=93&type=chunk) - As of June 30, 2025, the Group had net outflow liabilities of approximately **1,898 million RMB** and net cash outflow from operating activities of approximately **2,949 million RMB**[93](index=93&type=chunk) - The Group manages liquidity risk by regularly monitoring liquidity requirements, maintaining external financing and committed credit lines, and entering into financing agreements with multiple banks and financial institutions[95](index=95&type=chunk) - The Group's policy is that no more than **70%** of borrowings should mature within 12 months[95](index=95&type=chunk) - The fair value measurement hierarchy for the Group's financial instruments includes Level 1 (quoted prices in active markets), Level 2 (significant observable inputs), and Level 3 (significant unobservable inputs)[105](index=105&type=chunk) [34. Events After the Reporting Period](index=57&type=section&id=34.%20Events%20After%20the%20Reporting%20Period) This section confirms that no significant events have occurred after the reporting period that would materially affect the group's operations or financial performance - No significant post-balance sheet events have occurred since June 30, 2025, up to the date of the condensed consolidated financial statements[112](index=112&type=chunk) [35. Approval of Condensed Consolidated Financial Statements](index=57&type=section&id=35.%20Approval%20of%20Condensed%20Consolidated%20Financial%20Statements) This section states that the condensed consolidated financial statements were approved and authorized for issue by the Board of Directors on August 22, 2025 - The condensed consolidated financial statements were approved and authorized for issue by the Board of Directors on August 22, 2025[113](index=113&type=chunk) [Management Discussion and Analysis](index=58&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews Goldwind Technology's main businesses, core competencies, operating performance of key segments, and financial results, while also outlining future development trends and identifying risks and mitigation strategies [I. Principal Businesses During the Reporting Period](index=58&type=section&id=I.%20Principal%20Businesses%20During%20the%20Reporting%20Period) This section outlines the company's core businesses, including wind turbine manufacturing, wind power services, and wind farm investment and development, along with other diversified operations - The company operates three main businesses: wind turbine manufacturing, wind power services, and wind farm investment and development, alongside other businesses like water treatment, providing diversified revenue channels[114](index=114&type=chunk) - Goldwind Technology offers integrated solutions for wind turbine products, wind power services, and wind farm investment and development, with units suitable for various operating environments, and actively expands its global market presence[114](index=114&type=chunk) [II. Analysis of Core Competencies](index=58&type=section&id=II.%20Analysis%20of%20Core%20Competencies) This section highlights the company's core strengths, including its leading market position, R&D innovation, commitment to quality, comprehensive solutions, and global presence - The company is one of the earliest enterprises in China to enter the wind power equipment manufacturing sector, ranking first in domestic new wind power installed capacity for **14** consecutive years and first globally for **three** consecutive years[115](index=115&type=chunk) - The company emphasizes R&D innovation, with a "1+1+6" global R&D layout and over **3,000** R&D technical personnel, continuously enhancing product performance and market coverage[116](index=116&type=chunk) - The company adheres to a quality and efficiency-driven approach, ensuring high quality and stability throughout the wind turbine's lifecycle, reducing levelized cost of energy, and building a strong industry reputation[117](index=117&type=chunk) - The company provides integrated solutions for wind farm services and wind farm development, actively expanding into new business areas such as hybrid towers, energy storage, and energy carbon management, aiming to be a leader in clean energy and energy-saving environmental protection solutions[118](index=118&type=chunk) - Adhering to the principle of "localizing to globalize," the company has established a "1+1+6" global R&D layout, **7** regional centers, **5** global solution factories, and **3** international production bases, with operations spanning **47** countries across six continents[119](index=119&type=chunk) [III. Analysis of Principal Businesses](index=59&type=section&id=III.%20Analysis%20of%20Principal%20Businesses) This section provides an in-depth analysis of the company's main business segments, including market overview, operational performance, and future outlook - During the reporting period, the Group achieved revenue of **28,493.82 million RMB**, representing a **41.46% year-on-year increase**, and net profit attributable to the parent company of **1,487.54 million RMB**, a **7.26% year-on-year increase**[132](index=132&type=chunk) [(I) Overview](index=59&type=section&id=%28I%29%20Overview) This section provides a general overview of the global and domestic economic environment, energy policies, and the wind power industry's development during the reporting period - The International Monetary Fund (IMF) forecasts global economic growth to slow to **3.0%** and **3.1%** in 2025 and 2026, respectively[120](index=120&type=chunk) - In the first half of 2025, China's GDP grew by **5.3%** year-on-year, with the equipment manufacturing industry's added value increasing by **10.2%** year-on-year[120](index=120&type=chunk) - From January to June 2025, total electricity consumption across society increased by **3.7%** year-on-year; as of the end of June, national cumulative wind power installed capacity was approximately **573 GW**, a **22.7%** year-on-year increase[120](index=120&type=chunk) - The "Energy Law of the People's Republic of China" officially came into effect, promoting clean and low-carbon energy development and the construction of a unified national electricity market[121](index=121&type=chunk)[122](index=122&type=chunk) - The National Energy Administration issued the "2025 Energy Work Guidance Opinion," proposing to increase the share of non-fossil energy in power generation capacity to approximately **60%** and in total energy consumption to approximately **20%**[124](index=124&type=chunk) - In the first half of 2025, national newly grid-connected wind power capacity reached **51.39 GW**, a **98.9% year-on-year increase**, with cumulative installed capacity reaching **573 GW**, accounting for **15.7%** of the grid's total generation capacity[129](index=129&type=chunk) - From January to June 2025, the total domestic wind turbine public bidding volume reached **71.93 GW**, a **8.8% year-on-year increase**, with 6MW and above models maintaining a high proportion of bidding volume[130](index=130&type=chunk) - China's cumulative offshore wind power installed capacity ranks first globally, with **5** floating offshore wind power demonstration projects completed, totaling **40 MW** of installed capacity[131](index=131&type=chunk) [(II) Analysis of the Company's Principal Businesses](index=61&type=section&id=%28II%29%20Analysis%20of%20the%20Company%27s%20Principal%20Businesses) This section provides a detailed analysis of the company's core business segments, including wind turbine manufacturing, wind power services, wind farm investment, and water treatment operations - The company adheres to a high-quality development philosophy, driving product and technological innovation to create a multi-scenario product portfolio covering onshore large-scale bases, deep-sea offshore areas, and distributed wind power, while simultaneously expanding into emerging businesses such as "wind power +" hydrogen production, energy storage, hybrid towers, and energy carbon management[132](index=132&type=chunk) [1. Production, R&D, and Sales of Wind Turbines and Components](index=61&type=section&id=1.%20Production,%20R%26D,%20and%20Sales%20of%20Wind%20Turbines%20and%20Components) This section details the revenue, sales volume, order backlog, and technological innovations in the company's wind turbine manufacturing and sales segment - During the reporting period, the company's revenue from wind turbine and component sales was **21,852.28 million RMB**, a **71.15% year-on-year increase**, accounting for **76.69%** of operating revenue[134](index=134&type=chunk) - From January to June 2025, external sales volume reached **10,641.44 MW**, a **106.60% year-on-year increase**, with 6MW and above units seeing a **187.01%** year-on-year increase in sales volume, becoming the dominant model[134](index=134&type=chunk) Wind Turbine Sales Volume Details (For the Six Months Ended June 30) | Model | 2025 Sales Volume (MW) | 2024 Sales Volume (MW) | Sales Volume Change | | :--- | :--- | :--- | :--- | | Below 4MW | 22.50 | 24.85 | -9.46% | | 4MW (inclusive) - 6MW | 1,947.35 | 2,104.52 | -7.47% | | 6MW and above | 8,671.59 | 3,021.35 | 187.01% | | **Total** | **10,641.44** | **5,150.72** | **106.60%** | - As of June 30, 2025, the company's external order backlog totaled **51,811.47 MW**, a **45.58% year-on-year increase**, with overseas orders amounting to **7,359.82 MW**, up **42.27%** year-on-year[135](index=135&type=chunk) - The company continuously increases investment in technological innovation and R&D, forming GWHV11, GWHV12, GWHV15, GWHV17, GWHV19, GWHV20, GWHV21 multi-platform product series, covering onshore, offshore, and overseas wind power markets[137](index=137&type=chunk) - The GWH204 Ultra platform received ultra-high tower safety certification and was selected for the "2025 Wind Power Leading Innovation Product Catalog"[137](index=137&type=chunk) - The GWHV20 platform's GWH266-16.2MW Ultra prototype was grid-connected and fully operational in Jiangsu, increasing power generation by **5%** and reducing levelized cost of energy by **3%** to **4%**[138](index=138&type=chunk) - Goldwind Technology's grid-forming units were successfully selected for the National Energy Administration's fourth batch of major technical equipment for first (set) applications in the energy sector, and medium-speed grid-forming units passed performance testing by the China Electric Power Research Institute[138](index=138&type=chunk) - In the first half of 2025, the company obtained **137** complete machine certification certificates (**105** domestic, **32** international)[139](index=139&type=chunk) - As of the end of the reporting period, the company held **6,245** domestic patent applications (**3,803** invention patents) and **4,611** domestic authorized patents (**2,356** invention patents), ranking first in the industry[139](index=139&type=chunk) - The company actively participates in **33** IEC standard revisions and leads or participates in **606** domestic standard revisions[139](index=139&type=chunk) - The company maintains its leading position in the hybrid tower industry, with domestic hybrid tower new orders increasing by **50%** and deliveries by **59%** year-on-year in the first half of 2025, securing **3 GW** of international project orders[141](index=141&type=chunk) - In the first half of 2025, the company's domestic energy storage new orders increased by **99%** year-on-year, and overseas energy storage products GoldBlock L200 and GoldBlock L700 achieved scaled breakthroughs in orders and shipments[142](index=142&type=chunk) [2. Wind Power Services](index=64&type=section&id=2.%20Wind%20Power%20Services) This section describes the company's wind power services, focusing on asset value preservation, operational efficiency improvements, and revenue from post-warranty services - Goldwind Technology aims to preserve and enhance the value of new energy assets, promoting an operational philosophy shift from "maximizing power generation" to "optimizing power generation," continuously iterating and upgrading the Goldwind Tianji Trading Cloud Platform and Digital Intelligence Center[143](index=143&type=chunk) - The company integrates online monitoring with AI analysis technology to accelerate the "unmanned" process of wind farms, improving operation and maintenance efficiency by an average of over **25%**[143](index=143&type=chunk) - Self-developed flow control technology based on high-precision flow measurement has achieved market application and secured orders, increasing annual power generation by **2.5%** to **5%**[144](index=144&type=chunk) - In the first half of 2025, the company's electricity sales business covered **7** provinces, providing green energy to over **3,500** users[144](index=144&type=chunk) - During the reporting period, the Group's domestic and international post-warranty service projects had an operational capacity of nearly **45.95 GW**, a **37.0%** year-on-year increase[144](index=144&type=chunk) - The Group achieved wind power service revenue of **2,896.21 million RMB**, of which post-warranty service revenue was **1,754.71 million RMB**, a **9.56% year-on-year increase**[144](index=144&type=chunk) [3. Wind Farm Investment and Development](index=64&type=section&id=3.%20Wind%20Farm%20Investment%20and%20Development) This section covers the company's wind farm investment and development activities, including new grid-connected capacity, cumulative capacity, and power generation revenue - The company adheres to onshore centralized wind power development as its core, securing multiple large-scale projects and distributed indicators by closely following "Energy Demonstration County" policies and the "Riding the Wind" initiative[145](index=145&type=chunk) - During the reporting period, the company's domestic and international self-operated wind farms added **709.04 MW** of equity grid-connected capacity and transferred **100.2 MW** of equity grid-connected capacity[146](index=146&type=chunk) - As of the end of the reporting period, global cumulative equity grid-connected capacity was **8,651.70 MW**, with equity in-construction wind farm capacity of **3,705.42 MW**[146](index=146&type=chunk) - The Group's wind power projects generated revenue of **3,171.94 million RMB**, and investment income from the transfer of wind farm project equity was **143.00 million RMB**, a **35.89% year-on-year increase**[146](index=146&type=chunk) - During the reporting period, the average utilization hours for domestic wind turbines were **1,255** hours, exceeding the national average for wind turbines by **168** hours[146](index=146&type=chunk) [4. Water Treatment Business](index=65&type=section&id=4.%20Water%20Treatment%20Business) This section provides an overview of the company's water treatment business, including the number of project companies, operational scale, and revenue generated - As of the end of the reporting period, Goldwind Technology held **64** water treatment project companies, covering **13** provinces nationwide, with a total operational agreement scale of **2.5851 million tons/day**[147](index=147&type=chunk) - During the reporting period, the Group achieved water treatment operating revenue of **502.45 million RMB**, largely consistent with the same period last year[147](index=147&type=chunk) [5. Outlook for the Company's Future Development](index=65&type=section&id=5.%20Outlook%20for%20the%20Company%27s%20Future%20Development) This section presents forecasts for global wind power growth and the company's strategic positioning in the evolving clean energy market - BloombergNEF (BNEF) forecasts global new wind power installed capacity to reach **143 GW** in 2025, with cumulative global wind power installed capacity reaching **2 TW** by 2030[148](index=148&type=chunk) - GWEC predicts that over **350 GW** of new offshore wind power capacity will be added globally in the next decade (2025-2034), with China's new offshore wind capacity totaling **80 GW** between 2025 and 2030, accounting for **51%** of global new capacity[149](index=149&type=chunk) [6. Basic Information of Principal Subsidiaries](index=65&type=section&id=6.%20Basic%20Information%20of%20Principal%20Subsidiaries) This section lists the group's principal subsidiaries, joint ventures, and associates, along with key financial information for major subsidiaries - As of June 30, 2025, the Group had **821** subsidiaries (**52** directly controlled, **769** indirectly controlled), **22** joint ventures, **39** associates, and **36** investee companies[150](index=150&type=chunk) Principal Subsidiaries' Financial Information (As of June 30, 2025, under Chinese Accounting Standards) | No. | Company Name | Registered Capital (RMB) | Total Assets (RMB) | Net Assets (RMB) | Revenue (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 1 | Beijing Tianrun New Energy Investment Co., Ltd. | 5,550,000,000 | 72,726,183,331.83 | 18,216,477,573.24 | 3,126,549,994.39 | 599,562,835.45 | | 2 | Goldwind International Holdings (Hong Kong) Limited | USD635,200,000 | 24,610,547,334.13 | 6,186,084,733.45 | 8,611,722,617.52 | 983,071,373.59 | | 3 | Goldwind Investment Holdings Co., Ltd. | 1,000,000,000 | 4,705,899,188.85 | 3,689,994,303.23 | 45,701,120.53 | 240,996,062.73 | [IV. Operating Results and Analysis](index=66&type=section&id=IV.%20Operating%20Results%20and%20Analysis) This section provides a comprehensive analysis of the group's financial performance, including revenue, costs, gross profit, expenses, assets, liabilities, cash flows, and key financial ratios - For the six months ended June 30, 2025, the Group's revenue was **28,493.82 million RMB**, a **41.46% year-on-year increase**, and net profit attributable to shareholders of the listed company was **1,487.54 million RMB**, a **7.26% year-on-year increase**[153](index=153&type=chunk) Revenue by Business Segment (For the Six Months Ended June 30) | Business Segment | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Wind turbine manufacturing and sales | 21,852,284 | 12,767,677 | 9,084,607 | 71.15% | | Wind power services | 2,896,207 | 2,374,091 | 522,116 | 21.99% | | Wind farm development | 3,171,937 | 4,401,088 | (1,229,151) | -27.93% | | Others | 573,396 | 600,298 | (26,902) | -4.48% | | **Total** | **28,493,824** | **20,143,154** | **8,350,670** | **41.46%** | - The year-on-year increase in revenue was primarily due to increased wind turbine sales volume and increased revenue from wind farm construction services[155](index=155&type=chunk) Cost of Sales by Business Segment (For the Six Months Ended June 30) | Business Segment | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Wind turbine manufacturing and sales | 20,129,632 | 12,269,398 | 7,860,234 | 64.06% | | Wind power services | 2,245,075 | 1,785,942 | 459,133 | 25.71% | | Wind farm development | 1,349,074 | 1,916,923 | (567,849) | -29.62% | | Others | 419,002 | 477,150 | (58,148) | -12.19% | | **Total** | **24,142,783** | **16,449,413** | **7,693,370** | **46.77%** | - The year-on-year increase in cost of sales was primarily due to increased operating revenue[157](index=157&type=chunk) Gross Profit by Business Segment (For the Six Months Ended June 30) | Business Segment | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Wind turbine manufacturing and sales | 1,722,652 | 498,279 | 1,224,373 | 245.72% | | Wind power services | 651,132 | 588,149 | 62,983 | 10.71% | | Wind farm development | 1,822,863 | 2,484,165 | (661,302) | -26.62% | | Others | 154,394 | 123,148 | 31,246 | 25.37% | | **Total** | **4,351,041** | **3,693,741** | **657,300** | **17.79%** | Gross Profit Margin by Business Segment (For the Six Months Ended June 30) | Business Segment | 2025 Gross Profit Margin | 2024 Gross Profit Margin | Gross Profit Margin Change (percentage points) | | :--- | :--- | :--- | :--- | | Wind turbine manufacturing and sales | 7.88% | 3.90% | 3.98% | | Wind power services | 22.48% | 24.77% | -2.29% | | Wind farm development | 57.47% | 56.44% | 1.03% | | Others | 26.93% | 20.51% | 6.42% | - The Group's overall gross profit margin decreased from **18.34%** to **15.27%**, with gross profit margins for wind turbine manufacturing and sales, wind farm development, and other business segments increasing year-on-year, while wind power services' gross profit margin decreased year-on-year[159](index=159&type=chunk)[160](index=160&type=chunk) - Selling and distribution expenses were approximately **659.39 million RMB**, a **9.02% year-on-year increase**, mainly due to increased staff costs[163](index=163&type=chunk) - Administrative expenses were approximately **1,928.16 million RMB**, a **6.71% year-on-year increase**, mainly due to increased share-based payment expenses and staff costs[164](index=164&type=chunk) - Impairment losses on financial and contract assets, net, were **121.82 million RMB**, a **3.20% year-on-year decrease**, primarily due to reduced impairment losses on other receivables[165](index=165&type=chunk) - Other operating expenses were approximately **141.93 million RMB**, a **31.15% year-on-year increase**, mainly due to increased bank charges[166](index=166&type=chunk) - As of June 30, 2025, the Group's total assets were **161,553.27 million RMB**, with current assets accounting for **44.37%** of total assets[169](index=169&type=chunk) - The increase in current assets was primarily due to increases in inventories, trade and bills receivables, and pledged deposits[169](index=169&type=chunk) - The increase in non-current assets was primarily due to increases in prepayments, other receivables and other assets, property, plant and equipment, right-of-use assets, and contract assets[169](index=169&type=chunk) - Total liabilities were **118,066.80 million RMB**, with current liabilities at **73,585.15 million RMB** and non-current liabilities at **44,481.65 million RMB**[170](index=170&type=chunk) - The increase in current liabilities was primarily due to increases in other payables and accruals, and interest-bearing bank and other borrowings[170](index=170&type=chunk) - Net outflow liabilities were **1,898.09 million RMB**, and net assets were **43,486.48 million RMB**[170](index=170&type=chunk) - Net cash used in operating activities was **2,949.39 million RMB**, primarily impacted by increased inventories, increased trade receivables, and decreased trade payables[173](index=173&type=chunk) - Net cash used in investing activities was **1,836.80 million RMB**, primarily for the purchase of property, plant and equipment and financial assets[175](index=175&type=chunk) - Net cash from financing activities was **1,904.80 million RMB**, mainly from new bank and other borrowings, offset by repayment of bank loans and sale-and-leaseback payments[177](index=177&type=chunk) - Capital expenditure was **3,791.77 million RMB**, a **55.12% year-on-year increase**, with primary funding sources being bank borrowings and operating cash flow[179](index=179&type=chunk) - As of June 30, 2025, the Group's interest-bearing bank borrowings totaled **35,779.75 million RMB**, and other borrowings totaled **7,893.64 million RMB**[180](index=180&type=chunk) - The Group pledged assets with a total carrying value of **23,346.93 million RMB** to secure bank loans and other bank credit[182](index=182&type=chunk) - The debt-to-capital ratio increased from **65.71%** as of December 31, 2024, to **66.17%** as of June 30, 2025[183](index=183&type=chunk) - Over **69%** of the Group's revenue, expenses, financial assets, and financial liabilities are denominated in RMB, so changes in the RMB to foreign currency exchange rates do not significantly impact operating results[184](index=184&type=chunk) - Contingent liabilities increased from **24,837.26 million RMB** as of December 31, 2024, to **34,079.98 million RMB** as of June 30, 2025[185](index=185&type=chunk) - For the six months ended June 30, 2025, the Group had no significant investments, acquisitions, or disposals, nor any significant future plans for investments or capital assets[186](index=186&type=chunk)[187](index=187&type=chunk)[188](index=188&type=chunk) [V. Risks Faced by the Company and Countermeasures](index=73&type=section&id=V.%20Risks%20Faced%20by%20the%20Company%20and%20Countermeasures) This section identifies the key risks facing the company, including policy, market competition, and economic environment risks, along with the corresponding mitigation strategies - The company faces policy risks, as the development of the wind power industry is affected by national and industry policy adjustments[189](index=189&type=chunk) - Market competition risks are intensifying, with increasing competition among enterprises in product quality and efficiency improvement, securing advantageous resources, and expanding market share[190](index=190&type=chunk) - Economic environment and exchange rate fluctuation risks exist, as complex and volatile domestic and international economic environments may impact internationalization strategies, and overseas operations may incur losses due to exchange rate fluctuations[191](index=191&type=chunk) - The company will address risks through technological and product innovation, continuously launching high-quality, cost-effective, and superior-performing products and solutions, leveraging its full industry chain competitive advantages, and enhancing diversified profitability[191](index=191&type=chunk) [Other Disclosures](index=74&type=section&id=Other%20Disclosures) This section discloses the company's compliance with corporate governance codes, information on purchases, sales, or repurchases of listed securities, interim dividend policy, interim results review process, and post-balance sheet events - During the reporting period, the company complied with all applicable code provisions of Appendix C1 "Corporate Governance Code" of the Listing Rules, except for a brief period when the terms of office of members of the Board's special committees expired, which was fully rectified upon appointment of new members on July 8, 2025[192](index=192&type=chunk) - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or repurchased any of the Company's listed securities (including the sale of treasury shares)[193](index=193&type=chunk) - As of June 30, 2025, the Company held **2,828,173** A-share treasury shares, which will be used for the A-share restricted stock incentive plan[193](index=193&type=chunk) - The Company decided not to declare an interim dividend for the six months ended June 30, 2025 (nil for the same period in 2024)[194](index=194&type=chunk) - The Company's Audit Committee and its auditor, Deloitte Touche Tohmatsu, have reviewed the Group's unaudited interim results for the six months ended June 30, 2025[195](index=195&type=chunk) - As of the date of this announcement, no significant events have occurred since June 30, 2025, that would materially affect the Group's operations and financial performance[196](index=196&type=chunk) [Definitions](index=75&type=section&id=Definitions) This section provides definitions for key terms and abbreviations used in the report to ensure readers accurately understand the content

[Summary](index=1&type=section&id=Summary) [Interim Results and Dividends](index=1&type=section&id=Interim%20Results%20and%20Dividends) The Group reported an 8.0% increase in underlying profit attributable to shareholders to HKD 312 million, with interim dividend maintained at HKD 0.10 per share Interim Financial Highlights | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | YoY Change | | :--- | :--- | :--- | :--- | | Underlying Profit Attributable to Shareholders | 312 million | 289 million | +8.0% | | Basic Interim Earnings Per Share | 0.239 | 0.246 | -2.8% | | Unaudited Profit Attributable to Shareholders | 125 million | 113 million | +10.6% | | Interim Dividend Per Share | 0.10 | 0.10 | Flat | [Market Overview and Business Review](index=2&type=section&id=Market%20Overview%20and%20Business%20Review) [Hong Kong Property Market](index=2&type=section&id=Hong%20Kong%20Property%20Market) Hong Kong residential property prices saw increased activity after stamp duty abolition and HIBOR decline, while commercial and retail property rents and prices generally decreased - Hong Kong residential property prices initially declined due to high interest rates and ample supply but saw active transactions after the government abolished stamp duties[7](index=7&type=chunk) - HIBOR significantly decreased from May, promoting residential sales and prices[7](index=7&type=chunk) - Commercial and retail property rents and prices generally fell due to high vacancy rates, weak demand, and changing consumption patterns[7](index=7&type=chunk) [Mainland China Property Market](index=2&type=section&id=Mainland%20China%20Property%20Market) Despite central government stabilization policies, the Mainland China property market's response has been limited, with property prices and demand showing restricted effects - Despite government stabilization policies, the Mainland China real estate market's response has not yet caught up in the past six months[7](index=7&type=chunk) [Property Development Sales](index=2&type=section&id=Property%20Development%20Sales) Hong Kong's High Park project sold 95% of units, recognizing HKD 1.4 billion in sales revenue, while Mainland China projects generated RMB 756 million in recognized sales revenue with limited profit contribution [Hong Kong Property Development Sales](index=2&type=section&id=Hong%20Kong%20Property%20Development%20Sales) Hong Kong's High Park project has sold over 1,480 residential units, representing 95% of the total, with HKD 1.4 billion in sales revenue recognized - The High Park project in Tseung Kwan O, Hong Kong, has sold over **1,480 residential units**, representing approximately **95% of the total**[8](index=8&type=chunk) Hong Kong Property Sales Revenue | Project | Sales Revenue (HKD) | | :--- | :--- | | High Park (Recognized during review period) | 1.4 billion | [Mainland China Property Development Sales](index=3&type=section&id=Mainland%20China%20Property%20Development%20Sales) Mainland China development projects generated RMB 671 million in total pre-sales/sales, with RMB 756 million in recognized sales revenue, contributing limited profit to the Group Mainland China Property Sales Performance | Indicator | Amount (RMB) | | :--- | :--- | | Total Pre-sales/Sales of Development Projects | 671 million | | Group's Attributable Pre-sales/Sales | 518 million | | Group's Attributable Sales Revenue (Recognized during review period) | 756 million | - Mainland China sales revenue contributed limited profit to the Group during the period[9](index=9&type=chunk) [Property Development](index=3&type=section&id=Property%20Development) The Group unified ownership of a Hong Kong site for redevelopment, holding 2.9 million sq.m. of land bank for development, with progress detailed for various projects in Hong Kong and Mainland China [Land Bank and New Projects](index=3&type=section&id=Land%20Bank%20and%20New%20Projects) The Group formed a joint venture to redevelop a Hong Kong site into a 4,600 sq.m. commercial/residential complex, with its total land bank for development reaching 2.9 million sq.m. - The Group established a joint venture and successfully unified the ownership of the Fuk Chak Street site in Hong Kong, planning to redevelop it into a high-rise commercial/residential complex[10](index=10&type=chunk) Key Development Metrics | Indicator | Value | | :--- | :--- | | Fuk Chak Street Project Total Gross Floor Area | Approx. 4,600 sq.m. | | Group's Attributable Total Gross Floor Area of Land Bank for Development | Approx. 2,900,000 sq.m. | [Progress of Major Property Projects](index=3&type=section&id=Progress%20of%20Major%20Property%20Projects) The report details the progress of major property projects in Hong Kong and Mainland China, covering various stages from superstructure works to design approvals and foundation preparations Major Property Project Progress | Property Project | Region/City | Usage | Approx. Gross Floor Area (sq.m.) | Group's Attributable Interest | Project Progress | Estimated Completion Date | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Mid-Levels Grandeur | Sai Ying Pun, Hong Kong | Residential & Commercial | 4,600 | 60% | Superstructure works in progress | H1 2026 | | Clear Water Bay Road | Ngau Chi Wan, Kowloon | Residential & Commercial | 201,000 | 100% | Superstructure works in progress | 2027 to 2029 | | Fuk Chak Street | Tai Kok Tsui, Kowloon | Residential & Commercial | 4,600 | 50% | Preparing for demolition | To be confirmed | | Riverfront City (Shenyang) | Hunnan New District, Shenyang | Residential & Commercial | 630,000 | 100% | Phase 5A planning modification in progress | To be confirmed | | Cui Di Wan (Shenyang) | Shenhe District, Shenyang | Residential & Commercial | 2,000,000 | 100% | Phase 4 design approval in progress | To be confirmed | | Riverfront South Garden (Huizhou) | Huicheng District, Huizhou | Residential & Commercial | 520,000 | 60% | Phase 3 design modification completed | To be confirmed | | Shanyu Lake (Foshan) | Nanhai District, Foshan | Residential & Commercial | 1,600,000 | 50% | Phase 5 construction completed | To be confirmed | | City Plaza (Tianjin) | Hedong District, Tianjin | Residential, Commercial & Office | 850,000 | 49% | Phase 3B superstructure works in progress | End 2026 | | Yangpu (Shanghai) | Yangpu District, Shanghai | Residential, Commercial & Office | 75,000 | 40% | Preliminary construction permit obtained; foundation construction preparation in progress | End 2029 | | Polytec Grand Mansion (Shanxi) | Jiexiu City | Residential & Commercial | 463,000 | 100% | Phase 2 planning in progress | To be confirmed | | Hengda Plaza (Zhuhai) | Xiangzhou District, Zhuhai | Commercial, Office & Apartment | 199,000 | 70% | Phase 1 superstructure works in progress | End 2025 | [Property Investment](index=4&type=section&id=Property%20Investment) The Group's total rental income from Hong Kong investment properties decreased by 10.8% to HKD 132 million in the first half of 2025 Hong Kong Investment Property Rental Income | Indicator | H1 2025 (HKD) | H1 2024 (HKD) | YoY Change | | :--- | :--- | :--- | :--- | | Total Rental Income from Hong Kong Investment Properties | 132 million | 148 million | -10.8% | [Outlook](index=5&type=section&id=Outlook) [Market Outlook](index=5&type=section&id=Market%20Outlook) Residential transaction volume and prices are expected to stabilize or rise in the second half, while commercial and retail properties will likely remain in an adjustment phase - If HIBOR remains low and Hong Kong's economy grows healthily in the second half, residential transaction volume is expected to improve, with prices stabilizing or rising[14](index=14&type=chunk) - Commercial buildings and retail shops are expected to remain in an adjustment phase in the second half due to market supply-demand imbalance[14](index=14&type=chunk) [Hong Kong Project Outlook](index=5&type=section&id=Hong%20Kong%20Project%20Outlook) High Park sales are expected to complete, Mid-Levels Grandeur will launch, Clear Water Bay Road's first phase targets 2027 completion, and Fuk Chak Street construction is planned for 2026 - Hong Kong's High Park project in Tseung Kwan O is expected to largely complete residential unit sales in the second half[15](index=15&type=chunk) - The Mid-Levels Grandeur project in Sai Ying Pun will be launched for sale in the second half, with good sales response anticipated[15](index=15&type=chunk) - Superstructure works for the Clear Water Bay Road development in Ngau Chi Wan are progressing, with the first phase targeted for completion by the first half of 2027 or earlier[15](index=15&type=chunk) - The Fuk Chak Street joint venture project site in Tai Kok Tsui is preparing for demolition, with construction planned to commence in 2026[15](index=15&type=chunk) [Mainland China Project Outlook](index=5&type=section&id=Mainland%20China%20Project%20Outlook) Mainland China projects show varied progress, with Huizhou and Shenyang in design/approval, Shanxi Phase 1 sales strong, Zhuhai and Tianjin targeting 2025/2026 completion, and Shanghai preparing for foundation work - Huizhou Riverfront South Garden Phase 3 residential project has completed design modifications and will commence construction after approval[15](index=15&type=chunk) - Shanxi Polytec Grand Mansion Phase 1 sales are strong, with approximately **75% of units sold**, and sales are expected to largely complete within the year[16](index=16&type=chunk) - Zhuhai Hengda Plaza Phase 1 is expected to be completed and occupied by end-2025[17](index=17&type=chunk) - Tianjin City Plaza Phase 3B superstructure works are ongoing, with completion expected by end-2026[17](index=17&type=chunk) - The Shanghai Yangpu project has obtained preliminary construction permits, with foundation work preparation underway[17](index=17&type=chunk) [Financial Strategy and Dividend Policy](index=6&type=section&id=Financial%20Strategy%20and%20Dividend%20Policy) The Group anticipates High Park sales and rental income to drive second-half results and will adopt a conservative dividend policy due to industry challenges and significant project funding needs - The Group expects sales and rental income from Hong Kong's High Park project to be the main contributors to performance and revenue in the second half of 2025[18](index=18&type=chunk) - Given the challenging operating environment in the property sector and the substantial funding requirements for the large-scale Clear Water Bay Road development project, the Group deems it necessary to adopt a conservative dividend policy[18](index=18&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) [Consolidated Statement of Profit or Loss](index=7&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) Operating revenue increased to HKD 2.429 billion, with operating profit at HKD 240 million and profit attributable to equity holders at HKD 125 million, resulting in HKD 0.10 basic and diluted earnings per share Consolidated Statement of Profit or Loss Highlights | Indicator | H1 2025 (HKD thousand) | H1 2024 (HKD thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,428,801 | 1,940,947 | +25.1% | | Cost of Sales | (1,275,466) | (916,223) | +39.2% | | Fair Value Changes of Investment Properties | (186,798) | (189,846) | -1.6% | | Fair Value Changes of Property Development Interests | (293) | 14,050 | -102.1% | | Operating Profit | 239,920 | 269,188 | -10.9% | | Finance Costs | (73,965) | (85,140) | -13.1% | | Profit Before Tax | 195,801 | 199,345 | -1.8% | | Profit for the Period | 115,121 | 113,104 | +1.8% | | Profit Attributable to Equity Holders of the Company | 124,556 | 113,453 | +9.8% | | Earnings Per Share – Basic and Diluted | HKD 0.10 | HKD 0.10 | Flat | [Consolidated Statement of Financial Position](index=9&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets less current liabilities were HKD 36.89 billion, net assets were HKD 17.625 billion, with notable decreases in joint venture interests, inventories, and various current liabilities Consolidated Statement of Financial Position Highlights | Indicator | As of June 30, 2025 (HKD thousand) | As of Dec 31, 2024 (HKD thousand) | Change | | :--- | :--- | :--- | :--- | | Investment Properties | 13,295,290 | 13,416,380 | -0.9% | | Property Development Interests (Non-current) | 1,232,238 | 1,239,499 | -0.6% | | Interests in Joint Ventures | 1,588,019 | 1,898,578 | -16.4% | | Interests in Associates | 2,320,253 | 2,245,931 | +3.3% | | Inventories | 20,508,918 | 21,278,307 | -3.6% | | Cash and Bank Balances | 956,812 | 791,467 | +20.9% | | Trade and Other Payables (Current) | 2,663,313 | 3,231,671 | -17.5% | | Amounts Due to Joint Ventures (Current) | 0 | 557,725 | -100% | | Bank Loans (Current) | 1,709,454 | 2,374,807 | -28.0% | | Total Assets Less Current Liabilities | 36,890,009 | 36,200,159 | +1.9% | | Net Assets | 17,625,085 | 17,567,526 | +0.3% | [Notes](index=11&type=section&id=Notes) [Basis of Preparation](index=11&type=section&id=Basis%20of%20Preparation) This interim financial report is prepared under HKEX Listing Rules and HKAS 34, with accounting policies consistent with 2024 annual statements, except for Note 2 changes - The interim financial report is prepared in accordance with Hong Kong Listing Rules and HongAS 34[23](index=23&type=chunk) - Accounting policies are consistent with the 2024 annual financial statements, except for changes detailed in Note 2[23](index=23&type=chunk) [Changes in Accounting Policies](index=12&type=section&id=Changes%20in%20Accounting%20Policies) The Group applied HKAS 21 amendments with no significant impact, and no new standards or interpretations not yet effective were adopted in this period - Amendments to Hong Kong Accounting Standard 21 have been applied but have no significant impact on this interim report[24](index=24&type=chunk) - No new standards or interpretations not yet effective have been adopted in the current accounting period[25](index=25&type=chunk) [Segment Reporting](index=12&type=section&id=Segment%20Reporting) The Group manages its business across three reportable segments: property development (Hong Kong/Mainland China), property investment, and other businesses, with operating revenue from various property-related activities [Segment Results and Assets](index=13&type=section&id=Segment%20Results%20and%20Assets) In H1 2025, Hong Kong property development generated HKD 1.419 billion revenue and HKD 364.5 million profit, Mainland China property development generated HKD 600.2 million revenue and HKD 46.5 million profit, and total segment assets were HKD 40.475 billion Segment Performance and Assets (H1 2025) | Segment | H1 2025 Operating Revenue (HKD thousand) | H1 2025 Reportable Segment Profit/(Loss) (HKD thousand) | As of June 30, 2025, Reportable Segment Assets (HKD thousand) | | :--- | :--- | :--- | :--- | | Property Development (Total) | 2,428,801 | 498,697 | 40,475,189 | | - Hong Kong | 1,419,027 | 364,467 | 15,383,133 | | - Mainland China | 600,249 | 46,460 | 11,199,793 | | Property Investment | 132,151 | 102,532 | 13,312,565 | | Other Businesses | 277,374 | (14,762) | 579,698 | [Profit Before Tax](index=15&type=section&id=Profit%20Before%20Tax) Finance costs decreased by 13.1% to HKD 74.0 million in H1 2025 due to lower loan interest and higher capitalized costs, while interest income significantly declined [Finance Costs](index=15&type=section&id=Finance%20Costs) Net finance costs decreased by 13.1% to HKD 74.0 million, after capitalizing HKD 348.9 million in borrowing costs at an annual interest rate of 1.89%–6.98% Finance Costs Breakdown | Indicator | H1 2025 (HKD thousand) | H1 2024 (HKD thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Interest on Bank Loans | 377,164 | 543,149 | -30.6% | | Interest on Related Company Loans | 45,692 | 73,904 | -38.2% | | Less: Amount Capitalized | (348,891) | (531,913) | -34.4% | | Total Finance Costs | 73,965 | 85,140 | -13.1% | - Borrowing costs capitalized were calculated at an annual interest rate of **1.89%–6.98%**[34](index=34&type=chunk) [Other Items](index=16&type=section&id=Other%20Items) Depreciation and amortization were HKD 6.2 million, while interest income significantly decreased to HKD 12.1 million in the first half of 2025 Other Income and Expenses | Indicator | H1 2025 (HKD thousand) | H1 2024 (HKD thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Depreciation and Amortization | 6,184 | 10,155 | -39.1% | | Interest Income | (12,095) | (36,425) | -66.8% | [Income Tax](index=16&type=section&id=Income%20Tax) Total income tax decreased by 6.4% to HKD 80.7 million, with Hong Kong profits tax at HKD 75.8 million, new withholding tax of HKD 13.8 million, and a significant reduction in land appreciation tax Income Tax Breakdown | Indicator | H1 2025 (HKD thousand) | H1 2024 (HKD thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Total Tax for the Period | 80,680 | 86,241 | -6.4% | | Profits Tax Provision – Hong Kong | 75,780 | 77,775 | -2.6% | | Profits Tax Provision – Outside Hong Kong | 9,188 | 397 | +2213.4% | | Withholding Tax | 13,830 | 0 | N/A | | Land Appreciation Tax | 20 | 818 | -97.6% | | Deferred Tax | (18,138) | 7,251 | -350.1% | - Hong Kong profits tax is calculated at a rate of **16.5%**[36](index=36&type=chunk) - Mainland China land appreciation tax is levied at progressive rates ranging from **30% to 60%**[37](index=37&type=chunk) [Earnings Per Share](index=17&type=section&id=Earnings%20Per%20Share) Basic earnings per share remained at HKD 0.10, with profit attributable to equity holders at HKD 124.6 million and no dilutive potential ordinary shares during the period Earnings Per Share Details | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Basic Earnings Per Share | HKD 0.10 | HKD 0.10 | | Profit Attributable to Equity Holders of the Company | HKD 124,556,000 | HKD 113,453,000 | | Weighted Average Number of Ordinary Shares in Issue | 1,306,206,058 shares | 1,176,631,296 shares | - There were no dilutive potential ordinary shares during the period[39](index=39&type=chunk) [Dividends](index=17&type=section&id=Dividends) The Board declared an interim dividend of HKD 0.10 per share for 2025, consistent with the prior year, payable on January 7, 2026 Interim Dividend Declaration | Indicator | H1 2025 (HKD thousand) | H1 2024 (HKD thousand) | | :--- | :--- | :--- | | Interim Dividend of HKD 0.10 Per Share Declared After Period End | 130,621 | 130,621 | - The interim dividend will be paid on **January 7, 2026**[6](index=6&type=chunk) [Property Development Interests](index=17&type=section&id=Property%20Development%20Interests) Property development interests, accounted for at fair value, represent joint investments in Mainland China, with HKD 458.1 million expected to be recovered within one year - Property development interests represent joint investments by the Group and Polytec Holdings in Huizhou and Zhuhai, Mainland China[41](index=41&type=chunk) - These interests are accounted for at fair value, with **HKD 458.1 million** expected to be recovered within one year and classified as current assets[41](index=41&type=chunk) [Trade and Other Receivables / Loans](index=18&type=section&id=Trade%20and%20Other%20Receivables%20%2F%20Loans) Total trade receivables and loans decreased to HKD 384 million, with HKD 351 million current, as the Group maintains specific credit policies to mitigate risk Trade and Other Receivables / Loans | Indicator | As of June 30, 2025 (HKD thousand) | As of Dec 31, 2024 (HKD thousand) | Change | | :--- | :--- | :--- | :--- | | Trade Receivables and Loans | 384,015 | 425,517 | -9.7% | | - Current | 351,261 | 368,761 | -4.8% | | Other Receivables and Prepayments | 393,702 | 377,139 | +4.4% | | Total | 876,175 | 906,680 | -3.4% | - The Group maintains specific credit policies and close monitoring to mitigate credit risk[42](index=42&type=chunk) [Trade and Other Payables](index=19&type=section&id=Trade%20and%20Other%20Payables) Total trade and other payables decreased to HKD 2.663 billion, with trade payables at HKD 1.795 billion and contract liabilities significantly reduced to HKD 259.8 million Trade and Other Payables Breakdown | Indicator | As of June 30, 2025 (HKD thousand) | As of Dec 31, 2024 (HKD thousand) | Change | | :--- | :--- | :--- | :--- | | Trade Payables | 1,794,679 | 2,006,327 | -10.5% | | Contract Liabilities – Deposits Received for Property Sales | 259,804 | 524,646 | -50.5% | | Total | 2,663,313 | 3,231,671 | -17.5% | [Financial Review](index=19&type=section&id=Financial%20Review) [Financial Resources and Bank Borrowings](index=19&type=section&id=Financial%20Resources%20and%20Bank%20Borrowings) Total bank loans decreased to HKD 18.74 billion, with net bank borrowings at HKD 17.783 billion and a gearing ratio of 100.9%, supported by cash inflows from property sales Financial Resources and Bank Borrowings Highlights | Indicator | As of June 30, 2025 (HKD) | As of Dec 31, 2024 (HKD) | Change | | :--- | :--- | :--- | :--- | | Total Bank Loans | 18.74 billion | 19.125 billion | -2.0% | | Net Bank Borrowings | 17.783 billion | N/A | N/A | | Gearing Ratio | 100.9% | 104.4% | -3.5% | | Cash Inflow from Hong Kong Property Project Sales | 1.367 billion | N/A | N/A | | Cash Inflow from Mainland China Development Project Pre-sales/Sales | 368 million | N/A | N/A | - The Group prioritizes reducing its gearing ratio as a key financial strategy, achieved through disposing of non-core assets and launching projects for sale[46](index=46&type=chunk) - The Group cautiously advanced project development, investing approximately **HKD 657 million** in construction costs during the period[47](index=47&type=chunk) - All Group borrowings are arranged at floating interest rates, with RMB income and borrowings naturally hedging RMB exchange rate risk[47](index=47&type=chunk) [Capital Commitments](index=20&type=section&id=Capital%20Commitments) The Group's capital commitments totaled HKD 94 million as of June 30, 2025, primarily allocated to investment properties Capital Commitments | Indicator | As of June 30, 2025 (HKD) | | :--- | :--- | | Capital Commitments | 94 million | - Capital commitments are primarily for investment properties[48](index=48&type=chunk) [Pledged Assets](index=20&type=section&id=Pledged%20Assets) As of June 30, 2025, the Group pledged HKD 26.421 billion in properties and HKD 13 million in deposits as security for banking facilities and performance guarantees Pledged Assets | Indicator | As of June 30, 2025 (HKD) | | :--- | :--- | | Pledged Properties | 26.421 billion | | Pledged Deposits | 13 million | - Pledged assets primarily serve as security for banking facilities and performance guarantees[49](index=49&type=chunk) [Contingent Liabilities](index=20&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group provided HKD 38 million in guarantees to financial institutions for subsidiary performance guarantees Contingent Liabilities | Indicator | As of June 30, 2025 (HKD) | | :--- | :--- | | Guarantees for Subsidiary Performance | 38 million | [Other Information](index=20&type=section&id=Other%20Information) [Review of Interim Financial Report](index=20&type=section&id=Review%20of%20Interim%20Financial%20Report) The Audit Committee reviewed the unaudited interim financial report, which was also reviewed by independent auditor KPMG in accordance with HK SRE 2410 - The Audit Committee has reviewed the interim financial report[51](index=51&type=chunk) - Independent auditor KPMG has reviewed the interim financial report in accordance with Hong Kong Standard on Review Engagements 2410[51](index=51&type=chunk) [Compliance with Corporate Governance Code](index=21&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company complied with all Listing Rules Appendix C1 Part 2 code provisions, except for C.2.1 (chairman and CEO roles combined) and F.2.2 (Nomination Committee chairman's AGM absence) - The Company has complied with all code provisions in Part 2 of Appendix C1 to the Listing Rules, with two exceptions[53](index=53&type=chunk) - Code provision C.2.1: The roles of Chairman and Chief Executive Officer are held by Mr. Ko Wai Cheung[53](index=53&type=chunk) - Code provision F.2.2: Mr. Ko Wai Cheung, Chairman of the Nomination Committee, was unable to attend the 2025 Annual General Meeting due to medical arrangements[54](index=54&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=21&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2025 - Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period[55](index=55&type=chunk) [Closure of Register of Members](index=21&type=section&id=Closure%20of%20Register%20of%20Members) The Company will suspend share transfer registration from December 15-16, 2025, requiring shareholders to register by December 12, 2025, to qualify for the interim dividend - The register of members will be closed from **December 15 to December 16, 2025**[56](index=56&type=chunk) - Shareholders must register their transfers by **4:30 p.m. on December 12, 2025**, to qualify for the interim dividend[56](index=56&type=chunk) [Publication of Interim Report](index=22&type=section&id=Publication%20of%20Interim%20Report) The 2025 interim report, with all Listing Rules information, will be published online by end-September 2025, and printed copies will be sent upon request - The 2025 interim report will be published on the HKEXnews website and the Company's website by the end of **September 2025**[57](index=57&type=chunk) - Printed copies will be sent to shareholders upon request[57](index=57&type=chunk)

[Company Information and Financial Summary](index=1&type=section&id=Company%20Information%20and%20Financial%20Summary) This section provides an overview of the company's basic information, financial performance, and interim dividend policy for the first half of 2025 [Company Basic Information](index=1&type=section&id=Company%20Basic%20Information) This report presents the unaudited interim results announcement of Suzhou BaTeLab Co., Ltd. for the six months ended June 30, 2025 - Company name: **Suzhou BaTeLab Co., Ltd.** (Stock Code: **2149**)[2](index=2&type=chunk) - Reporting period: Six months ended **June 30, 2025**[2](index=2&type=chunk) [Financial Summary](index=1&type=section&id=Financial%20Summary) The company achieved moderate revenue and profit growth with a slight increase in gross margin in the first half of 2025, demonstrating stable operating performance 2025 First Half Financial Summary | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 291,701 | 290,554 | 0.4 | | Gross Profit | 150,970 | 148,959 | 1.4 | | Profit Before Tax | 77,148 | 67,116 | 14.9 | | Profit for the Period | 77,148 | 67,116 | 14.9 | - Gross margin increased from **51.3%** in the first half of 2024 to **51.8%** in the first half of 2025[4](index=4&type=chunk) [Interim Dividend](index=2&type=section&id=Interim%20Dividend) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended **June 30, 2025**[6](index=6&type=chunk) [Unaudited Interim Financial Statements](index=3&type=section&id=Unaudited%20Interim%20Financial%20Statements) This section presents the company's detailed unaudited financial statements, including the statement of profit or loss, financial position, and explanatory notes [Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The company achieved growth in revenue and profit during the reporting period, with significant increases in operating profit and profit before tax, leading to a corresponding rise in earnings per share Summary of Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 291,701 | 290,554 | | Gross Profit | 150,970 | 148,959 | | Operating Profit | 82,294 | 70,496 | | Profit Before Tax | 77,148 | 67,116 | | Profit and Total Comprehensive Income for the Period | 77,148 | 67,116 | | Basic Earnings Per Share (RMB) | 1.274 | 1.119 | | Diluted Earnings Per Share (RMB) | 1.266 | 1.119 | - Operating profit increased by **16.7%** year-on-year to **RMB 82,294 thousand**[8](index=8&type=chunk) - Finance costs increased from **RMB 3,380 thousand** in the first half of 2024 to **RMB 5,146 thousand** in the first half of 2025[8](index=8&type=chunk) [Statement of Financial Position](index=4&type=section&id=Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets and net assets both increased, with a significant rise in net current assets, maintaining a healthy capital structure Summary of Statement of Financial Position | Indicator | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Non-Current Assets | 128,532 | 157,839 | | Current Assets | 1,686,592 | 1,450,973 | | Current Liabilities | 623,632 | 601,826 | | Net Current Assets | 1,062,960 | 849,147 | | Net Assets | 1,190,049 | 1,005,004 | | Share Capital | 63,000 | 60,000 | | Reserves | 1,127,049 | 945,004 | | Total Equity | 1,190,049 | 1,005,004 | - Net current assets increased from **RMB 849,147 thousand** as of December 31, 2024, to **RMB 1,062,960 thousand** as of June 30, 2025[9](index=9&type=chunk) - Share capital increased by **RMB 3,000 thousand** due to the placement of shares[10](index=10&type=chunk)[42](index=42&type=chunk) [Notes to the Interim Financial Statements](index=6&type=section&id=Notes%20to%20the%20Interim%20Financial%20Statements) This section details the basis of preparation, significant accounting policies, and the composition and changes of various financial statement items, providing context for understanding the financial data [1 General Information](index=6&type=section&id=1%20General%20Information) This section provides an overview of the company's establishment, listing, and principal business activities - The company was incorporated on **November 12, 2010**, in Suzhou, Jiangsu Province, China, restructured into a joint stock company in **November 2021**, and listed on the Main Board of the Hong Kong Stock Exchange on **December 28, 2023**[11](index=11&type=chunk) - The company primarily engages in the research, development, and sales of high-performance analog integrated circuit design products[12](index=12&type=chunk) [2 Basis of Preparation and 3 Significant Accounting Policies](index=6&type=section&id=2%20Basis%20of%20Preparation%20and%203%20Significant%20Accounting%20Policies) This section outlines the accounting standards and principles used for preparing the interim financial statements, including new accounting standard amendments - The interim financial statements are prepared in accordance with Hong Kong Accounting Standard **34 "Interim Financial Reporting"** issued by the Hong Kong Institute of Certified Public Accountants and the Listing Rules of the Stock Exchange[15](index=15&type=chunk) - Amendments to Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants were first applied in this period, with no significant impact on financial performance and position[17](index=17&type=chunk)[18](index=18&type=chunk) [4 Revenue and Segment Reporting](index=7&type=section&id=4%20Revenue%20and%20Segment%20Reporting) This section details the company's revenue breakdown by product category and confirms its single operating segment Revenue from Contracts with Customers by Product Category | Product Category | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Sales of Analog IC Patterned Wafers | 291,701 | 290,554 | - The company has only one operating segment, the sale of analog IC patterned wafers, with all revenue derived from **Mainland China**[22](index=22&type=chunk)[23](index=23&type=chunk) [5 Other Income, Gains and Losses](index=8&type=section&id=5%20Other%20Income%2C%20Gains%20and%20Losses) This section provides a breakdown of other income, gains, and losses, highlighting the components such as interest income and government grants Details of Other Income, Gains and Losses | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Interest Income | 6,456 | 8,045 | | Government Grants | 5,817 | 6,338 | | Rental Income | 373 | 387 | | Net Exchange (Loss)/Gain | (5,812) | 2,312 | | Total | 6,834 | 17,082 | - Government grants are primarily for encouraging the IC industry and high-tech R&D projects, listing incentives, and additional input VAT deductions[25](index=25&type=chunk) [6 Profit Before Tax](index=8&type=section&id=6%20Profit%20Before%20Tax) This section details the components deducted in calculating profit before tax, including finance costs, staff costs, and R&D expenses Deductions from Profit Before Tax | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Total Finance Costs | 5,146 | 3,380 | | Total Staff Costs | 20,389 | 21,831 | | Cost of Inventories | 181,825 | 197,327 | | Total Depreciation | 4,596 | 3,849 | | Impairment Loss on Trade and Other Receivables | 1,084 | 3,517 | | Research and Development Expenses | 56,364 | 70,812 | | Amortisation of Intangible Assets | 44 | 26 | - Defined contribution retirement scheme contributions within staff costs significantly increased from **RMB 585 thousand** to **RMB 3,186 thousand**[26](index=26&type=chunk) - Research and development expenses include staff costs of **RMB 10,048 thousand** and depreciation of **RMB 1,271 thousand**[27](index=27&type=chunk) [7 Income Tax](index=9&type=section&id=7%20Income%20Tax) This section explains the company's income tax rates and the tax incentives it enjoys, including exemptions and R&D expense deductions - The company's corporate income tax rate is **25%**, but it enjoys tax exemption benefits under relevant policies[28](index=28&type=chunk) - The company entered its first assessable year in **2023**, enjoying tax exemption from **2024 to 2027**, and will subsequently be taxed at a preferential rate of **10%**[29](index=29&type=chunk) - The company is entitled to a **100%** super deduction for eligible research and development expenses[29](index=29&type=chunk) [8 Earnings Per Share](index=10&type=section&id=8%20Earnings%20Per%20Share) This section presents the basic and diluted earnings per share, explaining the factors contributing to their changes Earnings Per Share Data | Indicator | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Basic Earnings Per Share | 1.274 | 1.119 | | Diluted Earnings Per Share | 1.266 | 1.119 | - Both basic and diluted earnings per share increased, primarily due to higher profit for the period[30](index=30&type=chunk)[31](index=31&type=chunk) - Diluted earnings have been adjusted for the potential ordinary share impact under the company's employee restricted share unit scheme[31](index=31&type=chunk) [9 Right-of-Use Assets](index=10&type=section&id=9%20Right-of-Use%20Assets) This section reports the changes in right-of-use assets, specifically noting a deduction due to lease agreement modifications - For the six months ended June 30, 2025, the company recognized a deduction of **RMB 1,067 thousand** in right-of-use assets due to modifications in lease agreements[32](index=32&type=chunk) [10 Financial Assets at Fair Value Through Other Comprehensive Income](index=10&type=section&id=10%20Financial%20Assets%20at%20Fair%20Value%20Through%20Other%20Comprehensive%20Income) This section describes the company's strategic investment in a limited partnership, which is measured at fair value through other comprehensive income - The company holds a **29.4%** limited partnership interest in a limited partnership, a strategic investment with a fair value maintained at **RMB 30,000 thousand**[33](index=33&type=chunk)[34](index=34&type=chunk) - No dividends were received from this investment during the reporting period[34](index=34&type=chunk) [11 Other Non-Current Assets](index=10&type=section&id=11%20Other%20Non-Current%20Assets) This section details the composition and changes in other non-current assets, including prepayments for property, plant, and equipment, and investment deposits Details of Other Non-Current Assets | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Prepayments for Construction and Property, Plant and Equipment | 35,193 | 36,548 | | Investment Deposits | – | 24,525 | | Total | 35,193 | 61,073 | - Investment deposits (for semiconductor manufacturing projects) were reduced to **zero** as of June 30, 2025[35](index=35&type=chunk) [12 Trade and Other Receivables](index=11&type=section&id=12%20Trade%20and%20Other%20Receivables) This section provides a breakdown and aging analysis of trade and other receivables, noting an increase primarily due to extended credit terms for customers Details of Trade and Other Receivables | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade Receivables and Bills Receivable | 71,140 | 50,541 | | Other Receivables and Deposits | 958 | 962 | | Total | 72,098 | 51,503 | Aging Analysis of Trade Receivables and Bills Receivable | Aging | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 1 month | 49,667 | 20,482 | | 1 to 2 months | 5,964 | 20,132 | | 2 to 3 months | 3,602 | 9,415 | | Over 3 months | 11,907 | 512 | - Trade receivables and bills receivable significantly increased, primarily due to appropriately extended credit terms for customers with good credit standing[36](index=36&type=chunk) [13 Prepayments](index=11&type=section&id=13%20Prepayments) This section details the increase in prepayments, primarily driven by increased raw material purchases to support business expansion Details of Prepayments | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Prepayments to Suppliers | 535,907 | 396,053 | | Others | 396 | 238 | | Total | 536,303 | 396,291 | - Prepayments significantly increased, primarily for purchasing raw materials to meet the demands of expanding business operations[37](index=37&type=chunk) [14 Pledged Bank Deposits](index=12&type=section&id=14%20Pledged%20Bank%20Deposits) This section reports the amount of bank deposits pledged as security for bank acceptance bills Pledged Bank Deposits | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Pledged Bank Deposits | 60,166 | 51,757 | - Bank deposits are pledged as security for the issuance of bank acceptance bills and will be released upon settlement[39](index=39&type=chunk) [15 Trade and Other Payables](index=12&type=section&id=15%20Trade%20and%20Other%20Payables) This section details the composition and aging analysis of trade and other payables, noting a decrease primarily due to reduced contract liabilities Details of Trade and Other Payables | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade Payables and Bills Payable | 247,547 | 216,563 | | Contract Liabilities | 1,281 | 40,138 | | Other Payables and Accruals | 10,863 | 20,966 | | Total | 259,691 | 277,667 | Aging Analysis of Trade Payables and Bills Payable | Aging | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 3 months | 195,133 | 110,802 | | 3 to 6 months | 52,414 | 105,761 | | Total | 247,547 | 216,563 | - Total trade and other payables decreased, primarily due to a reduction in contract liabilities for output VAT to be transferred as of December 31, 2024[40](index=40&type=chunk)[91](index=91&type=chunk) [16 Capital, Reserves and Dividends](index=13&type=section&id=16%20Capital%2C%20Reserves%20and%20Dividends) This section outlines the changes in share capital and share premium due to share placement and confirms no dividends were paid or declared Changes in Share Capital | Item | Number of Ordinary Shares (thousand shares) | Share Capital (RMB '000) | Share Premium (RMB '000) | Total (RMB '000) | | :--- | :--- | :--- | :--- | :--- | | January 1, 2024 / June 30, 2024 / December 31, 2024 | 60,000 | 60,000 | 530,648 | 590,648 | | Placement of Shares | 3,000 | 3,000 | 104,072 | 107,072 | | June 30, 2025 | 63,000 | 63,000 | 634,720 | 697,720 | - The company placed **3,000,000 H shares** on May 28, 2025, with net proceeds totaling **RMB 107,072 thousand**[42](index=42&type=chunk) - The company did not pay or declare any dividends during the reporting period[44](index=44&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a comprehensive review of the company's business performance, financial results, risk factors, and future outlook [Business Review and Outlook](index=14&type=section&id=Business%20Review%20and%20Outlook) In the first half of 2025, the company continued to focus on the high-end industrial analog IC market, strengthening its competitive advantages through technological innovation and business expansion, while also outlining future market opportunities and challenges [Market Overview](index=14&type=section&id=Market%20Overview) This section provides an overview of the global analog IC industry's recovery, demand drivers, and the impact of external trade environment on the Chinese market - The global analog IC industry continued its recovery trend in the first half of **2025**, with leading companies experiencing revenue rebound[45](index=45&type=chunk) - The electrification and intelligent development of global manufacturing, along with emerging applications, continue to drive demand for high-performance analog chips[45](index=45&type=chunk) - Fluctuations in the external trade environment increase risks for China's analog chip industry but are expected to accelerate the import substitution process[45](index=45&type=chunk) [Business Overview](index=14&type=section&id=Business%20Overview) This section highlights the company's focus on high-end industrial analog ICs, its strategic optimizations, and key financial achievements during the reporting period - The company continues to focus on the high-end industrial analog IC patterned wafer market, maintaining its performance advantage through core product, business, and technological competitiveness[46](index=46&type=chunk) - During the reporting period, the company optimized its machine learning-based semi-automated chip design methods and actively launched new industrial products, solidifying its differentiated competitive advantage[46](index=46&type=chunk) - Revenue for the reporting period reached approximately **RMB 291.7 million**, a year-on-year increase of **0.4%**, with a gross margin of approximately **51.8%**[46](index=46&type=chunk) [Principal Businesses and Products](index=15&type=section&id=Principal%20Businesses%20and%20Products) This section describes the company's position as a leading industrial analog IC provider, its product portfolio, and its extensive intellectual property and application range - The company is one of China's leading industrial analog IC patterned wafer providers, with products based on self-developed EDA and IP libraries[47](index=47&type=chunk) - The company possesses a product matrix centered on power management and signal chain, extending to a full range of industrial analog chips, with over **850** product models sold[47](index=47&type=chunk) - As of June 30, 2025, the company holds **123** accumulated invention patents, has developed over **600** IP modules, and expanded its diversified end-application scope to include industrial, automotive, and communication sectors[48](index=48&type=chunk) [Future Outlook](index=15&type=section&id=Future%20Outlook) This section outlines the company's expectations for continued domestic demand in key sectors and its strategy to enhance competitiveness and supply chain resilience - Domestic demand in new energy vehicles, data centers, and green energy management is expected to deepen, but external competition and changes in the trade environment will pose challenges[49](index=49&type=chunk) - The company will be market-oriented, enhancing product coverage and competitiveness, and strengthening its full industry chain layout capabilities to address supply chain challenges[49](index=49&type=chunk) [Financial Review](index=16&type=section&id=Financial%20Review) This section provides a detailed analysis of the company's financial performance during the reporting period, including revenue composition, cost control, profit changes, and various expenses, revealing the impact of improved operational efficiency and market strategy adjustments on financial results [Revenue](index=16&type=section&id=Revenue) This section analyzes the company's revenue growth, breakdown by product line and sales channel, and the strategic shift towards direct sales Revenue by Business Line | Business Line | 2025 (RMB '000) | Share (%) | 2024 (RMB '000) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Sales of Power Management Products | 263,108 | 90.2 | 256,504 | 88.3 | | Sales of Signal Chain Products | 28,593 | 9.8 | 34,050 | 11.7 | | Total | 291,701 | 100.0 | 290,554 | 100.0 | Revenue by Sales Channel | Sales Channel | 2025 (RMB '000) | Share (%) | 2024 (RMB '000) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Sales to Distributors | 225,100 | 77.2 | 261,423 | 90.0 | | Direct Sales | 66,601 | 22.8 | 29,131 | 10.0 | | Total | 291,701 | 100.0 | 290,554 | 100.0 | - Total revenue increased by **0.4%** year-on-year to **RMB 291.7 million**, primarily driven by the launch of new industrial products, expansion with key customers, and new client acquisition[51](index=51&type=chunk) - Revenue from power management products grew by **2.6%**, while signal chain product revenue decreased by **16.1%** due to changes in customer demand[52](index=52&type=chunk) - Direct sales revenue significantly increased by **128.9%** to **RMB 66.6 million**, while sales to distributors decreased by **13.9%**, reflecting the company's strategic shift towards a direct sales model[52](index=52&type=chunk)[53](index=53&type=chunk) [Cost of Sales](index=17&type=section&id=Cost%20of%20Sales) This section notes a slight decrease in the cost of sales during the reporting period - Cost of sales decreased by **0.6%** year-on-year to **RMB 140.7 million**, showing minimal change[54](index=54&type=chunk) [Gross Profit and Gross Margin](index=17&type=section&id=Gross%20Profit%20and%20Gross%20Margin) This section analyzes the increase in gross profit and gross margin, with a detailed breakdown by business line - Gross profit increased by **1.3%** year-on-year to **RMB 151.0 million**, with gross margin rising from **51.3%** to **51.8%**[55](index=55&type=chunk) Gross Profit and Gross Margin by Business Line | Business Line | 2025 Gross Profit (RMB '000) | 2025 Gross Margin (%) | 2024 Gross Profit (RMB '000) | 2024 Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Sales of Power Management Products | 135,067 | 51.3 | 129,803 | 50.6 | | Sales of Signal Chain Products | 15,908 | 55.6 | 19,156 | 56.3 | | Total | 150,975 | 51.8 | 148,959 | 51.3 | - Gross profit from power management products increased by **4.1%**, with gross margin improving by **0.7 percentage points**; gross profit from signal chain products decreased by **16.7%**, with gross margin declining by **0.7 percentage points**[56](index=56&type=chunk)[57](index=57&type=chunk) [Other Income, Gains and Losses](index=18&type=section&id=Other%20Income%2C%20Gains%20and%20Losses) This section reports a significant decrease in other income, gains, and losses, primarily attributed to lower interest income - Other income, gains, and losses decreased by **60.2%** year-on-year to **RMB 6.8 million**, mainly due to reduced interest income from lower HKD deposit rates[58](index=58&type=chunk) [Distribution Costs](index=19&type=section&id=Distribution%20Costs) This section notes an increase in distribution costs, reflecting the company's efforts to expand its direct sales customer base - Distribution costs increased by **33.3%** year-on-year to **RMB 4.0 million**, primarily due to the company's efforts to expand direct sales customers[59](index=59&type=chunk) [Administrative Expenses](index=19&type=section&id=Administrative%20Expenses) This section reports a decrease in administrative expenses, mainly due to reduced intermediary and consulting fees post-listing - Administrative expenses decreased by **30.3%** year-on-year to **RMB 15.2 million**, mainly due to reduced intermediary, consulting, and agency fees following the company's stable operation post-listing[60](index=60&type=chunk) [Research and Development Expenses](index=19&type=section&id=Research%20and%20Development%20Expenses) This section details a decrease in R&D expenses, attributed to improved efficiency and changes in remuneration policies - Research and development expenses decreased by **20.3%** year-on-year to **RMB 56.4 million**, primarily due to reduced material costs (**-26.0%**) from improved R&D efficiency and lower staff remuneration (**-16.0%**) due to changes in the remuneration system[61](index=61&type=chunk) [Finance Costs](index=19&type=section&id=Finance%20Costs) This section reports an increase in finance costs, mainly due to a rise in short-term bank loans - Finance costs increased by **50.0%** year-on-year to **RMB 5.1 million**, primarily due to an increase in short-term bank loans[62](index=62&type=chunk) [Profit Before Tax](index=20&type=section&id=Profit%20Before%20Tax) This section highlights the increase in profit before tax, driven by enhanced management efficiency and reduced administrative and R&D expenses - Profit before tax increased by **14.9%** year-on-year to **RMB 77.1 million**, primarily benefiting from improved management efficiency and reduced administrative and R&D expenses[63](index=63&type=chunk) [Income Tax](index=20&type=section&id=Income%20Tax) This section explains the zero income tax expense during the reporting period, attributed to tax incentives and R&D expense deductions - Income tax expense for the reporting period was **zero**, primarily due to the company enjoying income tax incentives and R&D expense super deductions[64](index=64&type=chunk) [Profit for the Period](index=20&type=section&id=Profit%20for%20the%20Period) This section reports the increase in profit for the period, consistent with the growth in profit before tax - Profit for the period increased by **14.9%** year-on-year to **RMB 77.1 million**, consistent with the reasons for the increase in profit before tax[65](index=65&type=chunk) [Non-HKFRS Measures](index=20&type=section&id=Non-HKFRS%20Measures) The company uses adjusted net profit as a supplementary financial measure to eliminate the potential impact of listing expenses and share-based payments, thereby better comparing operating performance across different periods - Adjusted net profit is defined as profit for the period plus listing expenses and share-based payments[67](index=67&type=chunk) Reconciliation of Adjusted Net Profit | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Profit for the Period | 77,148 | 67,116 | | Add: Listing Expenses | – | – | | Add: Share-based Payments | 878 | – | | Adjusted Net Profit | 78,026 | 67,116 | [Risk Factors](index=21&type=section&id=Risk%20Factors) The company faces various risks including market, operational, investment, human resources, financial, and foreign exchange risks, which are mitigated through established risk management procedures, though not entirely eliminated [Market Risk](index=21&type=section&id=Market%20Risk) This section defines market risk as the potential for adverse impact on profitability due to market price changes, which the company's management actively monitors - Market risk refers to the risk of profitability being adversely affected or business objectives being impacted by changes in market prices, which the company's management actively manages and monitors[69](index=69&type=chunk) [Operational Risk](index=21&type=section&id=Operational%20Risk) This section defines operational risk as potential losses from inadequate internal processes, personnel, or systems, or external events, managed by various functional departments - Operational risk refers to the risk of losses arising from inadequate or failed internal processes, people, and systems, or from external events, managed by various functional divisions and departments[70](index=70&type=chunk) [Investment Risk](index=22&type=section&id=Investment%20Risk) This section describes investment risk as the possibility of losses relative to expected returns, managed through authorization systems and detailed analysis - Investment risk refers to the possibility of any investment incurring losses relative to its expected returns, managed by the company through authorization systems and detailed analysis[71](index=71&type=chunk) [Risk of Human Resources Supply and Retention](index=22&type=section&id=Risk%20of%20Human%20Resources%20Supply%20and%20Retention) This section addresses the risk of failing to attract and retain key personnel with necessary skills and experience, which the company mitigates through attractive remuneration - The company faces the risk of being unable to attract and retain key personnel with the required skills, experience, and talent, and will offer attractive remuneration packages[72](index=72&type=chunk) [Financial Risk](index=22&type=section&id=Financial%20Risk) This section identifies various financial risks, including interest rate, credit, and liquidity risks, which the company manages through established risk management procedures - The company faces financial risks such as interest rate risk, credit risk, and liquidity risk, and has established risk management procedures to mitigate these risks[73](index=73&type=chunk) [Foreign Exchange Risk](index=22&type=section&id=Foreign%20Exchange%20Risk) This section explains that the company's financial statements are presented in RMB, and exchange rate fluctuations may impact financial performance, with no current hedging policy - The company's financial statements are presented in RMB, and exchange rate fluctuations may affect its financial position and operating results; currently, there is no foreign currency hedging policy, but it is regularly reviewed[74](index=74&type=chunk) [Capital Management](index=22&type=section&id=Capital%20Management) The company is committed to ensuring its ability to continue as a going concern and maintaining a healthy capital ratio to support business development and maximize shareholder value, managed through its capital gearing ratio - The objectives of capital management are to ensure the ability to continue as a going concern, maintain a healthy capital ratio, support business development, and maximize shareholder value[75](index=75&type=chunk) - The company manages capital using the capital gearing ratio, which was **30.6%** as of June 30, 2025 (June 30, 2024: **32.4%**)[76](index=76&type=chunk) [Liquidity and Financial Resources](index=23&type=section&id=Liquidity%20and%20Financial%20Resources) The company maintained a strong financial position and ample liquidity during the reporting period, with a significant increase in current assets, though cash and cash equivalents slightly decreased - Current assets as of June 30, 2025, were **RMB 1,686.6 million**, an increase of **16.2%** from December 31, 2024, primarily due to increases in inventories, prepayments, and cash and cash equivalents[77](index=77&type=chunk) - Cash and cash equivalents slightly decreased by **0.4%** to **RMB 633.7 million**, mainly due to increased prepayments resulting from business expansion[77](index=77&type=chunk) - Bank loans as of June 30, 2025, amounted to **RMB 362.1 million**, all repayable within one year[77](index=77&type=chunk) [Capital Expenditure](index=23&type=section&id=Capital%20Expenditure) The company's capital expenditure significantly decreased during the reporting period but is expected to increase with business growth, funded primarily by operating cash flow, bank borrowings, and net proceeds from the listing - As of June 30, 2025, capital expenditure was **RMB 1.0 million**, a significant decrease from **RMB 32.0 million** in the same period of 2024[78](index=78&type=chunk) - Future capital expenditure is expected to increase with business growth, funded by cash generated from operations, bank borrowings, and net proceeds from the listing[79](index=79&type=chunk) [Capital Commitments](index=24&type=section&id=Capital%20Commitments) The company's capital commitments at the end of the reporting period primarily relate to contracted but unprovided additions to property, plant, and equipment, with a slight decrease in amount - As of June 30, 2025, capital commitments amounted to **RMB 65.9 million**, a slight decrease from **RMB 66.4 million** as of December 31, 2024[80](index=80&type=chunk) [Pledged Assets](index=24&type=section&id=Pledged%20Assets) As of the end of the reporting period, some of the company's bank deposits were pledged as security for bank acceptance bills, with no other assets pledged - As of June 30, 2025, **RMB 60.2 million** in bank deposits were pledged as security for the issuance of bank acceptance bills[81](index=81&type=chunk) [Loans and Borrowings](index=24&type=section&id=Loans%20and%20Borrowings) The company's total outstanding bank loans increased, primarily to meet working capital needs for daily operations, with all borrowings maturing within one year - Total outstanding bank loans increased from **RMB 320.2 million** as of December 31, 2024, to **RMB 362.1 million** as of June 30, 2025[82](index=82&type=chunk) - All interest-bearing borrowings are unsecured and unpledged, with effective interest rates ranging from **2.60% to 3.45%** per annum, and all borrowings are due within one year[82](index=82&type=chunk) - As of June 30, 2025, the company had unutilized bank facilities of **RMB 695.1 million**[83](index=83&type=chunk) [Contingent Liabilities](index=24&type=section&id=Contingent%20Liabilities) As of the end of the reporting period, the company had no contingent liabilities - As of June 30, 2025, the company had no contingent liabilities[84](index=84&type=chunk) [Property, Plant and Equipment](index=25&type=section&id=Property%2C%20Plant%20and%20Equipment) The company's total property, plant, and equipment slightly decreased, primarily comprising equipment and machinery, motor vehicles, office equipment and furniture, construction in progress, and leasehold improvements - Total property, plant, and equipment decreased from **RMB 62.1 million** as of December 31, 2024, to **RMB 61.1 million** as of June 30, 2025[85](index=85&type=chunk) - Construction in progress primarily includes purchased R&D equipment (awaiting installation) and the renovation of the Suzhou R&D center[85](index=85&type=chunk) [Right-of-Use Assets](index=25&type=section&id=Right-of-Use%20Assets) The company's right-of-use assets decreased, primarily due to reduced rental payments and increased accumulated depreciation - Right-of-use assets decreased from **RMB 4.0 million** as of December 31, 2024, to **RMB 1.7 million** as of June 30, 2025[86](index=86&type=chunk) [Financial Assets at Fair Value Through Other Comprehensive Income](index=25&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Other%20Comprehensive%20Income) The company's financial assets at fair value through other comprehensive income remained stable, primarily representing strategic investments - These financial assets remained at **RMB 30,000 thousand**, primarily representing the company's **29.4%** interest as a limited partner in a limited liability partnership[87](index=87&type=chunk) [Inventories](index=25&type=section&id=Inventories) The company's inventories significantly increased to meet customer demand and market expectations - Inventories increased from **RMB 315.4 million** as of December 31, 2024, to **RMB 381.6 million** as of June 30, 2025, primarily stocked based on customer demand and market assessment[88](index=88&type=chunk) [Trade and Other Receivables](index=26&type=section&id=Trade%20and%20Other%20Receivables) Trade receivables increased, primarily due to the company appropriately extending credit terms for customers with good credit to boost order volumes - Trade receivables increased from **RMB 50.5 million** as of December 31, 2024, to **RMB 71.1 million** as of June 30, 2025[89](index=89&type=chunk) - The increase was primarily due to appropriately extended credit terms for customers with good credit, enhancing customer willingness to place orders and increasing order volumes[89](index=89&type=chunk) [Prepayments](index=26&type=section&id=Prepayments) Prepayments significantly increased, reflecting the growing demand for raw material procurement due to the company's expanding business scale - Prepayments increased from **RMB 396.3 million** as of December 31, 2024, to **RMB 536.3 million** as of June 30, 2025[90](index=90&type=chunk) - The increase was primarily due to expanding business scale and growing demand for raw material procurement[90](index=90&type=chunk) [Trade and Other Payables](index=26&type=section&id=Trade%20and%20Other%20Payables) Total trade and other payables decreased, primarily influenced by a reduction in contract liabilities for output VAT to be transferred - Trade and other payables decreased from **RMB 277.7 million** as of December 31, 2024, to **RMB 259.7 million** as of June 30, 2025[91](index=91&type=chunk) - The decrease was primarily due to contract liabilities for output VAT to be transferred, recognized as **RMB 5.3 million** as of December 31, 2024[91](index=91&type=chunk) [Employees and Remuneration Policy](index=27&type=section&id=Employees%20and%20Remuneration%20Policy) The company maintains a stable employee team, attracting and retaining talent through a robust R&D system, training mechanisms, and competitive remuneration and welfare policies - As of June 30, 2025, the company had **112** full-time employees, with **68** R&D personnel, accounting for over **60%**[92](index=92&type=chunk) - The company builds its R&D system and training mechanisms through a full-stack design platform, offering competitive salaries, performance bonuses, and other incentives[92](index=92&type=chunk)[93](index=93&type=chunk) [Compliance with Relevant Laws and Regulations](index=27&type=section&id=Compliance%20with%20Relevant%20Laws%20and%20Regulations) The company strictly adheres to Chinese laws and regulations concerning the IC industry, cybersecurity, data protection, intellectual property, labor, and product liability, with no material non-compliance during the reporting period - The company strictly adheres to Chinese laws and regulations concerning the IC industry, cybersecurity, data protection, intellectual property, labor, and product liability[94](index=94&type=chunk) - During the reporting period, the company had no material breaches or non-compliance with applicable laws and regulations[95](index=95&type=chunk) [Future Plans for Material Investments and Capital Assets](index=28&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) As of the end of the reporting period, the company had no future plans for material investments and capital assets other than those disclosed in the prospectus - As of June 30, 2025, the company had no other plans for material investments and capital assets, except for those disclosed in the prospectus[96](index=96&type=chunk) [Material Investments, Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=28&type=section&id=Material%20Investments%2C%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) During the reporting period, the company had no material investments, acquisitions, or disposals concerning subsidiaries, associates, or joint ventures - During the reporting period, the company had no material investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures[97](index=97&type=chunk) [Corporate Governance and Other Information](index=28&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section covers the company's adherence to corporate governance standards, audit committee review, and other relevant corporate information [Compliance with Corporate Governance Code](index=28&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company has adopted and complied with the Corporate Governance Code, with a deviation where the roles of Chairman and Chief Executive Officer are combined, which the Board believes is in the company's overall best interest - The company has adopted and complied with the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules[98](index=98&type=chunk) - There is a deviation from Code Provision C.2.1, where the roles of Chairman of the Board and Chief Executive Officer are combined and held by **Mr. Zhang Guangping**[98](index=98&type=chunk) - The Board believes this combined role facilitates unified leadership and effective execution of administrative functions within the company, serving the overall interests of the company and its shareholders[98](index=98&type=chunk) [Compliance with Model Code](index=29&type=section&id=Compliance%20with%20Model%20Code) The company's directors and supervisors have confirmed compliance with the Model Code for Securities Transactions set out in Appendix C3 of the Listing Rules during the reporting period - The company's directors and supervisors have confirmed compliance with the Model Code for Securities Transactions set out in Appendix C3 of the Listing Rules during the reporting period[100](index=100&type=chunk) [Audit Committee Review of Interim Results](index=29&type=section&id=Audit%20Committee%20Review%20of%20Interim%20Results) The Audit Committee has reviewed the company's interim results and believes the relevant statements comply with applicable accounting standards, Listing Rules, and legal requirements - The Audit Committee has reviewed the company's interim results and discussed accounting principles, risk management, internal controls, and financial reporting matters with management and auditors[101](index=101&type=chunk) - The Audit Committee believes the statements comply with applicable accounting standards, Listing Rules, and legal requirements, and appropriate disclosures have been made[101](index=101&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=29&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the reporting period, the company did not purchase, sell, or redeem any of its listed securities, nor did it hold any treasury shares - During the reporting period, the company did not purchase, sell, or redeem any of its listed securities, nor did it hold any treasury shares[102](index=102&type=chunk) [Material Events After the Reporting Period](index=29&type=section&id=Material%20Events%20After%20the%20Reporting%20Period) As of the date of this announcement, no material events affecting the company have occurred after the reporting period - As of the date of this announcement, no material events affecting the company have occurred after the reporting period[103](index=103&type=chunk) [Interim Dividend](index=30&type=section&id=Interim%20Dividend) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended **June 30, 2025**[104](index=104&type=chunk) [Publication of Interim Results and Interim Report](index=30&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) This interim results announcement has been published on the company's website and the Stock Exchange's website, and the interim report will be dispatched to shareholders and published on the websites in due course - This interim results announcement has been published on the company's website (**www.batelab.com**) and the Stock Exchange's website (**www.hkexnews.hk**)[105](index=105&type=chunk) - The interim report will be dispatched to shareholders who have requested printed copies and published on the aforementioned websites in due course[105](index=105&type=chunk) [Board of Directors](index=30&type=section&id=Board%20of%20Directors) As of the announcement date, the Board of Directors comprises three executive directors, one non-executive director, and four independent non-executive directors - The Board of Directors includes Executive Directors **Mr. Zhang Guangping**, **Mr. Li Zhen**, and **Mr. Li Yi**; Non-executive Director **Mr. Kong Jianhua**; and Independent Non-executive Directors **Mr. Zhao Heming**, **Mr. Wen Chengge**, **Mr. Ma Ming**, and **Ms. Kang Yuanshu**[107](index=107&type=chunk)