Core Viewpoint - SANY International demonstrated strong operational resilience and significant growth in the first half of 2025, achieving a revenue of 12.2 billion yuan, a year-on-year increase of 14%, and a net profit of 1.294 billion yuan, up 25% [1][2] Financial Performance - In the first half of 2025, SANY International achieved operating revenue of 12.2 billion yuan, representing a 14% year-on-year growth [1] - The net profit attributable to the parent company was 1.294 billion yuan, reflecting a 25% increase compared to the previous year [1] - Operating cash flow net amount reached 368 million yuan, showing a remarkable growth of 341% [1] Business Segments - The oil and gas equipment, silicon energy, and lithium energy segments all experienced double-digit growth [1] - New energy sectors, including silicon energy, lithium energy, and hydrogen energy, became new growth engines, generating 2.6 billion yuan in revenue, a 276% increase year-on-year [2] - SANY's silicon energy overseas microgrid orders amounted to approximately 1.2 billion yuan, with intended orders around 4 billion yuan [2] - Lithium energy battery sales reached 5,560 units, marking a staggering growth of 999% [2] - The scale of SANY's unmanned mining vehicles reached 150 units, with an efficiency exceeding 105% and an attendance rate over 90% [2] - Hydrogen energy projects secured orders of 123 MW and completed the first round of equity financing, with a pre-investment valuation exceeding 2 billion yuan [2] Global Strategy - SANY International's overseas sales revenue reached 4 billion yuan, a 5% increase year-on-year, with a five-year compound growth rate of 47% [1] - Core products such as port equipment, mining vehicles, and energy storage have been exported to multiple countries and regions across Asia, Africa, America, and Europe, enhancing the brand's international influence [1] Future Outlook - The management expressed confidence in achieving the annual performance targets across all business segments for the second half of 2025 [2] - SANY International plans to continue advancing its globalization, digitalization, and low-carbon strategies, focusing on developing new productive forces and strengthening R&D innovation capabilities [2]

Financial Data and Key Metrics Changes - The company reported a revenue of $1.2 billion for H1 2025, representing a 15% increase year-over-year [1] - Gross profit margin improved to 30%, up from 28% in the previous year [1] - Net income for the period was $150 million, a 20% increase compared to H1 2024 [1] Business Line Data and Key Metrics Changes - The construction machinery segment saw revenue growth of 18%, reaching $800 million, driven by increased demand in domestic markets [1] - The mining equipment division reported a 10% decline in revenue, totaling $200 million, attributed to reduced capital expenditures in the mining sector [1] - The service and parts business grew by 25%, contributing $200 million to total revenue, reflecting a strong focus on after-sales support [1] Market Data and Key Metrics Changes - Domestic market sales accounted for 70% of total revenue, up from 65% in the previous year, indicating a shift towards local demand [1] - International sales increased by 5%, reaching $360 million, with notable growth in Southeast Asia [1] - The company’s market share in the construction equipment sector rose to 25%, up from 22% [1] Company Strategy and Development Direction - The company plans to invest $100 million in R&D to enhance product innovation and sustainability initiatives over the next two years [1] - A strategic focus on expanding the service network to improve customer engagement and retention was highlighted [1] - The management emphasized the importance of digital transformation in operations to enhance efficiency and reduce costs [1] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in the construction sector, expecting continued growth in demand for heavy equipment [1] - Concerns were raised regarding potential supply chain disruptions and inflationary pressures impacting costs [1] - The outlook for H2 2025 remains positive, with projected revenue growth of 10% to 15% [1] Other Important Information - The company announced a dividend of $0.05 per share, reflecting confidence in cash flow generation [1] - A new partnership with a leading technology firm was established to develop smart machinery solutions [1] Q&A Session Summary Question: What are the expectations for the mining equipment segment moving forward? - Management indicated that while the current outlook is cautious, they anticipate a rebound in capital expenditures in the mining sector by late 2025 [1] Question: How is the company addressing supply chain challenges? - The company is diversifying its supplier base and increasing inventory levels to mitigate risks associated with supply chain disruptions [1] Question: Can you elaborate on the digital transformation initiatives? - Management highlighted investments in IoT and AI technologies to enhance product offerings and operational efficiencies [1]

Group 1 - The core viewpoint of the article is that SANY International reported significant growth in both revenue and profit for the first half of 2025 compared to the same period in 2024 [1] - The company achieved a revenue of approximately 12.237 billion yuan, representing an increase of about 13.8% from approximately 10.756 billion yuan in the same period of 2024 [1] - The profit for the period was approximately 1.294 billion yuan, which is an increase of about 31.1% compared to approximately 0.987 billion yuan in the same period of 2024 [1] Group 2 - The profit attributable to the owners of the parent company was approximately 1.294 billion yuan, reflecting a growth of about 25.3% from approximately 1.033 billion yuan in the same period of 2024 [1]

Core Viewpoint - SANY International (00631) reported a significant increase in revenue and profit for the six months ending June 30, 2025, driven by its global, digital, and low-carbon strategies [1] Financial Performance - The company achieved a revenue of RMB 12.237 billion, representing a year-on-year increase of 13.76% [1] - Gross profit reached RMB 2.899 billion, up 10.4% year-on-year [1] - Profit attributable to the parent company was RMB 1.294 billion, marking a 25.33% increase compared to the previous year [1] - Basic earnings per share stood at RMB 0.39 [1] Strategic Developments - Revenue growth was primarily attributed to the implementation of global, digital, and low-carbon strategies, leading to significant increases in revenue from large port machinery, oil and gas equipment, and emerging industries [1] - The acquisition of lithium energy business completed on July 22, 2024, provided a new source of revenue [1] International Expansion - The company is steadily advancing its globalization efforts, with international revenue reaching RMB 4.019 billion, a year-on-year growth of 5.4% [1] - The rapid development of the second growth curve from emerging industries is contributing to new profit growth points [1]

Core Insights - SANY International (00631) reported a revenue of RMB 12.237 billion for the six months ending June 30, 2025, representing a year-on-year increase of 13.76% [1] - Gross profit reached RMB 2.899 billion, up 10.4% year-on-year, while profit attributable to shareholders increased by 25.33% to RMB 1.294 billion, with basic earnings per share at RMB 0.39 [1] - The revenue growth was primarily driven by the company's implementation of globalization, digitalization, and low-carbon strategies, leading to significant increases in revenue from large port machinery, oil and gas equipment, emerging industries, and overseas sales of mining trucks [1] Revenue Breakdown - International revenue for the first half of 2025 was RMB 4.019 billion, reflecting a year-on-year growth of 5.4% [1] - The acquisition of lithium energy business completed on July 22, 2024, contributed to new revenue streams for the company [1] - The rapid development of the second growth curve from emerging industries provided new profit growth points [1]

Core Insights - SANY International (00631.HK) reported a revenue of approximately RMB 12,236.6 million for the six months ending June 30, 2025, representing a year-on-year increase of about 13.8% [1] - The group's profit margin before tax for the same period was approximately 14.0%, an increase of about 3.3 percentage points compared to 10.7% for the six months ending June 30, 2024 [1] - The net profit for the period was approximately RMB 1,294.2 million, reflecting a year-on-year increase of about 31.1%, while the profit attributable to the owners of the parent company was approximately RMB 1,294.4 million, up by about 25.3% [1] - The profit growth significantly outpaced revenue growth, indicating a continued high-quality development and enhanced operational capability [1] - The company is steadily advancing its globalization strategy, with international revenue reaching RMB 4,018.9 million in the first half of 2025, a year-on-year increase of 5.4% [1] - The emerging industries developed by the company are rapidly growing, providing new profit growth points [1]

Company Information [Company Overview](index=1&type=section&id=Company%20Overview) Sany Heavy Equipment International Holdings Company Limited announced its unaudited condensed consolidated interim results for the six months ended June 30, 2025 - Sany Heavy Equipment International Holdings Company Limited announced its unaudited condensed consolidated interim results for the six months ended June 30, 2025[2](index=2&type=chunk) [Company Details](index=6&type=section&id=Company%20Details) The company, incorporated in the Cayman Islands, primarily manufactures and sells mining, logistics, oil, and new energy equipment in mainland China - The company was incorporated in the Cayman Islands on July 23, 2009, primarily engaged in manufacturing and selling mining equipment, logistics equipment, oil equipment, new energy manufacturing equipment, electric power, lithium batteries, energy storage systems, and accessories, and providing related services in mainland China[8](index=8&type=chunk) - The company's direct holding company is Sany Hong Kong Group Co., Ltd., and its ultimate holding company is Sany Heavy Equipment Investment Co., Ltd[8](index=8&type=chunk) Financial Highlights [Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) For the six months ended June 30, 2025, the Group's revenue increased by 13.8% year-on-year to RMB 12,236.6 million, with profit before tax margin rising 3.3 percentage points to 14.0% 2025 H1 Key Financial Data | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | YoY Growth/Change | | :--- | :--- | :--- | :--- | | Revenue | 12,236.6 | 10,756.1 | +13.8% | | Profit before tax margin | 14.0% | 10.7% | +3.3 percentage points | | Profit for the period | 1,294.2 | 987.0 | +31.1% | | Profit attributable to owners of the parent | 1,294.4 | 1,032.7 | +25.3% | | Basic earnings per share | 0.39 RMB | - | - | Condensed Consolidated Interim Financial Statements [Condensed Consolidated Interim Income Statement](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Income%20Statement) For the six months ended June 30, 2025, the Group reported revenue of RMB 12,236.6 million, gross profit of RMB 2,898.7 million, and profit attributable to owners of the parent of RMB 1,294.4 million Condensed Consolidated Interim Income Statement (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 12,236,558 | 10,756,056 | | Cost of sales | (9,337,876) | (8,130,487) | | Gross profit | 2,898,682 | 2,625,569 | | Other income and gains | 594,104 | 368,568 | | Selling and distribution costs | (576,305) | (563,037) | | Administrative expenses | (985,711) | (1,108,543) | | Net impairment losses on financial and contract assets | (93,846) | (54,159) | | Finance costs | (122,046) | (113,330) | | Profit before tax | 1,707,237 | 1,152,535 | | Income tax expense | (413,064) | (165,580) | | Profit for the period | 1,294,173 | 986,955 | | Profit attributable to owners of the parent | 1,294,383 | 1,032,749 | | Basic earnings per share (RMB) | 0.39 | 0.31 | [Condensed Consolidated Interim Statement of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's profit for the period was RMB 1,294.2 million, with total comprehensive income of RMB 1,252.6 million primarily due to exchange differences Condensed Consolidated Interim Statement of Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the period | 1,294,173 | 986,955 | | Exchange differences on translation of financial statements | (41,553) | (3,548) | | Total comprehensive income for the period | 1,252,620 | 983,407 | | Attributable to owners of the parent | 1,252,830 | 1,029,201 | [Condensed Consolidated Interim Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total non-current assets were RMB 15,084.9 million, total current assets were RMB 28,553.6 million, and total equity was RMB 12,510.0 million Condensed Consolidated Interim Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total non-current assets | 15,084,891 | 14,700,627 | | Total current assets | 28,553,556 | 26,227,101 | | Total current liabilities | 23,103,840 | 21,209,793 | | Net current assets | 5,449,716 | 5,017,308 | | Total non-current liabilities | 8,024,575 | 7,542,675 | | Net assets | 12,510,032 | 12,175,260 | | Total equity | 12,510,032 | 12,175,260 | Notes to the Condensed Consolidated Interim Financial Information [Basis of Preparation and Changes in Accounting Policies](index=6&type=section&id=Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies) The interim financial information is prepared in accordance with IAS 34 and presented in RMB, with no significant impact from newly adopted IFRS amendments - The condensed consolidated interim financial information is prepared in accordance with International Accounting Standard 34 Interim Financial Reporting and presented in RMB[9](index=9&type=chunk) - The revised International Financial Reporting Standards (IFRS) accounting standards (amendment to IAS 21 Lack of Exchangeability) adopted for the first time in the current period did not have a significant impact on the condensed consolidated interim financial information[10](index=10&type=chunk)[11](index=11&type=chunk) [Operating Segment Information](index=7&type=section&id=Operating%20Segment%20Information) The Group operates in four reportable segments: mining equipment, logistics equipment, oil and gas equipment, and emerging industry equipment, with emerging industry equipment showing significant revenue growth - The Group's four reportable operating segments are: mining equipment, logistics equipment, oil and gas equipment, and emerging industry equipment[12](index=12&type=chunk) Segment Revenue (For the six months ended June 30) | Segment | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Mining equipment | 4,636,791 | 5,938,343 | | Logistics equipment | 3,680,398 | 3,282,225 | | Oil and gas equipment | 1,324,966 | 845,853 | | Emerging industry equipment | 2,594,403 | 689,635 | | Total | 12,236,558 | 10,756,056 | - Sales revenue from fellow subsidiaries for the six months ended June 30, 2025, was approximately **RMB 2,487.3 million**, a significant increase from RMB 1,269.5 million in the same period of 2024[18](index=18&type=chunk) [Revenue, Other Income and Gains](index=11&type=section&id=Revenue%2C%20Other%20Income%20and%20Gains) For the six months ended June 30, 2025, the Group's revenue from contracts with customers was RMB 12,236.6 million, primarily from industrial product sales in mainland China, with other income and gains increasing significantly Revenue from Contracts with Customers (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue from contracts with customers | 12,236,558 | 10,756,056 | Revenue by Type of Goods or Services (For the six months ended June 30) | Type of goods or services | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Sale of industrial products | 11,198,732 | 10,519,113 | | Construction services | 584,109 | — | | Oilfield services | 276,105 | 24,340 | | Maintenance services and others | 126,525 | 174,427 | Other Income and Gains (For the six months ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank interest income | 118,623 | 59,234 | | Government grants | 293,842 | 170,929 | | Net exchange differences | 45,859 | 4,479 | | Net fair value gains | 59,574 | 57,752 | | Total other income and gains | 594,104 | 368,568 | [Profit Before Tax](index=14&type=section&id=Profit%20Before%20Tax) The Group's profit before tax is derived after deducting various expenses such as cost of inventories sold, service costs, depreciation, R&D costs, and employee benefits, while including net exchange differences and fair value gains Items Deducted/Included in Profit Before Tax (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of inventories sold | 8,919,939 | 7,970,054 | | Cost of services provided | 330,587 | 128,164 | | Depreciation of property, plant and equipment | 394,051 | 289,924 | | Research and development costs | 701,742 | 813,063 | | Total employee benefit expenses | 1,162,962 | 1,272,542 | | Net impairment of financial and contract assets | 93,846 | 54,159 | | Net fair value gains | (59,574) | (57,752) | [Finance Costs](index=15&type=section&id=Finance%20Costs) For the six months ended June 30, 2025, the Group's finance costs totaled RMB 122.0 million, primarily consisting of interest on interest-bearing bank and other borrowings Finance Costs (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on interest-bearing bank and other borrowings | 115,226 | 102,287 | | Interest on discounted bills | 5,407 | 9,812 | | Interest on lease liabilities | 1,413 | 1,231 | | Total | 122,046 | 113,330 | [Income Tax](index=15&type=section&id=Income%20Tax) The Group's income tax expense was RMB 413.1 million, with an effective tax rate of approximately 24.2%, reflecting varying tax rates for Hong Kong and mainland China operations, including preferential rates for high-tech enterprises - Hong Kong profits tax is provided at **8.25% to 16.5%**, while mainland China operating companies are subject to a 25% corporate income tax rate[27](index=27&type=chunk) - Eleven major operating companies (including Sany Heavy Equipment, Sany Marine Heavy Industry, etc.) are recognized as high-tech enterprises and are subject to a preferential corporate income tax rate of **15%**[29](index=29&type=chunk) Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current — Hong Kong | 127,221 | 35,781 | | Current — Mainland China | 215,100 | 164,926 | | Deferred | 42,288 | (19,518) | | Total tax expense for the period | 413,064 | 165,580 | [Dividends](index=16&type=section&id=Dividends) Shareholders approved a final dividend of HKD 0.29 per share for the year ended December 31, 2024, totaling approximately RMB 983.7 million, with no interim dividend proposed for H1 2025 - Shareholders approved a final dividend of **HKD 0.29 per share** for the year ended December 31, 2024, totaling approximately **RMB 983.7 million**[31](index=31&type=chunk) - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[32](index=32&type=chunk) [Earnings Per Share Attributable to Ordinary Equity Holders of the Parent](index=17&type=section&id=Earnings%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Parent) For the six months ended June 30, 2025, basic earnings per share were RMB 0.39 and diluted earnings per share were RMB 0.35, both showing an increase from the prior year Earnings Per Share (For the six months ended June 30) | Indicator | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Basic earnings per share | 0.39 | 0.31 | | Diluted earnings per share | 0.35 | 0.28 | - Basic earnings per share are calculated based on profit attributable to ordinary equity holders of the parent of **RMB 1,294.4 million** and a weighted average of **3,219.5 million** ordinary shares outstanding[34](index=34&type=chunk) - Diluted earnings per share calculation considers the potential dilutive effect of share options and convertible preference shares converting into ordinary shares[35](index=35&type=chunk) [Property, Plant and Equipment](index=17&type=section&id=Property%2C%20Plant%20and%20Equipment) As of June 30, 2025, the carrying amount of property, plant and equipment was RMB 8,185.1 million, with additions of RMB 645.5 million and depreciation of RMB 394.1 million during the period Changes in Property, Plant and Equipment (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Carrying amount at January 1 | 7,989,762 | 7,275,832 | | Additions | 645,513 | 1,229,866 | | Depreciation for the period/year | (394,051) | (548,985) | | Carrying amount at June 30/December 31 | 8,185,096 | 7,989,762 | [Trade and Bills Receivables](index=18&type=section&id=Trade%20and%20Bills%20Receivables) As of June 30, 2025, net trade receivables were RMB 13,041.6 million and bills receivables were RMB 755.2 million, with an impairment provision of RMB 798.7 million for trade receivables Trade and Bills Receivables (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables (gross) | 13,840,233 | 11,692,009 | | Impairment | (798,661) | (718,022) | | Trade receivables (net) | 13,041,572 | 10,973,987 | | Bills receivables | 755,191 | 1,131,661 | Ageing Analysis of Trade Receivables (As of June 30) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 180 days | 8,850,894 | 7,447,691 | | 181 to 365 days | 2,665,291 | 2,242,741 | | 1 to 2 years | 1,358,170 | 1,142,848 | - The Group endorsed bills receivables with a carrying amount of **RMB 567.1 million** to suppliers to settle trade payables and continued to recognize them, as it retained substantially all risks and rewards[41](index=41&type=chunk) - The Group endorsed bills receivables with a carrying amount of **RMB 947.7 million** to suppliers and derecognized them, as substantially all risks and rewards were transferred[42](index=42&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=20&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, the Group's total financial assets at fair value through profit or loss amounted to RMB 2,069.4 million, primarily wealth management products issued by Chinese banks Financial Assets at Fair Value Through Profit or Loss (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current | 1,966,880 | 2,393,996 | | Non-current | 102,500 | 57,500 | | Total | 2,069,380 | 2,451,496 | - Unlisted investments primarily consist of wealth management products issued by banks and other financial institutions in mainland China, and investments in limited liability partnerships and companies[43](index=43&type=chunk) [Trade and Bills Payables](index=21&type=section&id=Trade%20and%20Bills%20Payables) As of June 30, 2025, the Group's total trade and bills payables were RMB 12,051.1 million, with the largest portion due within 30 days, and RMB 914.6 million owed to fellow subsidiaries Ageing Analysis of Trade and Bills Payables (As of June 30) | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 30 days | 6,556,471 | 5,776,501 | | 31 to 90 days | 3,860,448 | 1,572,728 | | 91 to 180 days | 1,306,412 | 3,245,574 | | Total | 12,051,100 | 11,213,230 | - Trade and bills payables include amounts due to fellow subsidiaries of **RMB 914.6 million**[45](index=45&type=chunk) [Interest-Bearing Bank and Other Borrowings](index=22&type=section&id=Interest-Bearing%20Bank%20and%20Other%20Borrowings) As of June 30, 2025, the Group's total interest-bearing bank and other borrowings were RMB 10,889.5 million, with varying interest rates and some borrowings secured by leased land or power charges Interest-Bearing Bank and Other Borrowings (As of June 30) | Type | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total current borrowings | 4,612,267 | 4,250,167 | | Total non-current borrowings | 6,277,202 | 5,684,432 | | Total | 10,889,469 | 9,934,599 | - Secured bank and other borrowings bear interest at annual rates ranging from **1.77% to 3.98%**, while unsecured borrowings bear interest at **1.75% to 4.35%**[46](index=46&type=chunk) - Some bank loans are secured by the Group's leased land and power charge pledges, and Sany Group Co., Ltd. provides guarantees for certain bank loans[48](index=48&type=chunk) [Government Grants](index=23&type=section&id=Government%20Grants) As of June 30, 2025, the Group's total government grants were RMB 1,683.2 million, with RMB 293.8 million transferred to the income statement during the period, primarily for property, plant, equipment, or R&D projects Government Grants (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | At January 1 | 1,765,642 | 1,916,665 | | Received during the period/year | 198,778 | 257,888 | | Transferred to income statement during the period/year | (293,842) | (425,668) | | At June 30/December 31 | 1,683,160 | 1,765,642 | - Government grants are primarily used for certain projects involving the purchase of property, plant and equipment or for research and development project funding[47](index=47&type=chunk) [Share Capital](index=24&type=section&id=Share%20Capital) As of June 30, 2025, the company's total issued and fully paid share capital was RMB 318.9 million, including ordinary and convertible preference shares, with 16,813,599 new ordinary shares issued for share awards Issued and Fully Paid Share Capital (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total issued and fully paid share capital | 318,941 | 317,394 | - For the six months ended June 30, 2025, the company issued **16,813,599 new ordinary shares** for share awards[50](index=50&type=chunk) - Convertible preference shares are convertible into ordinary shares of the company at any time and have the same rights as ordinary shares to receive declared dividends[49](index=49&type=chunk) [Commitments](index=25&type=section&id=Commitments) As of June 30, 2025, the Group's capital commitments amounted to approximately RMB 1,186.7 million, primarily for buildings, plant, and machinery Capital Commitments (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Buildings | 349,296 | 432,905 | | Plant and machinery | 837,404 | 772,588 | | Total | 1,186,700 | 1,205,493 | Business Review [Principal Products](index=26&type=section&id=Principal%20Products) The Group's products are categorized into four segments: mining equipment, logistics equipment, oil and gas equipment, and emerging industries, covering a wide range of specialized machinery and new energy solutions - The Group's products are divided into four major segments: mining equipment, logistics equipment, oil and gas equipment, and emerging industries[53](index=53&type=chunk) - Mining equipment includes roadheader equipment, coal mining equipment, engineering tunnel boring machines, mining transportation vehicles, and smart mining operation systems[53](index=53&type=chunk) - Emerging industries include solar modules, hydrogen production equipment, power battery modules, and energy storage systems[53](index=53&type=chunk) [Overall Business Performance](index=26&type=section&id=Overall%20Business%20Performance) In H1 2025, the Group achieved revenue of RMB 12,236.6 million, a 13.8% year-on-year increase, and profit for the period of RMB 1,294.2 million, up 31.1%, driven by global, digital, and low-carbon strategies - The Group continued to implement its globalization, digitalization, and low-carbon operation strategies, achieving steady business development[54](index=54&type=chunk) Overall Business Performance (2025 H1) | Indicator | 2025 H1 (RMB million) | YoY Growth | | :--- | :--- | :--- | | Revenue | 12,236.6 | +13.8% | | Profit for the period | 1,294.2 | +31.1% | | Profit attributable to shareholders | 1,294.4 | +25.3% | | International revenue | 4,018.9 | +5.4% | - The rapidly developing second curve created by emerging industries has become a new profit growth point[54](index=54&type=chunk) [Financial Performance Analysis](index=27&type=section&id=Financial%20Performance%20Analysis) The Group's H1 2025 revenue grew by 13.8% due to global strategy, increased sales in key segments, and acquisitions, leading to a 3.3 percentage point rise in profit before tax margin despite a slight decrease in gross margin - Revenue increase was primarily due to the deep implementation of globalization, digitalization, and low-carbon strategies, leading to significant increases in revenue from large port machinery, oil and gas equipment, emerging industries, and overseas mining vehicles, as well as new revenue streams from the acquisition of lithium energy business[55](index=55&type=chunk) - Other income and gains increased by **61.2%** to **RMB 594.1 million**, mainly due to increased government grants and bank interest income[56](index=56&type=chunk) - Gross margin decreased by **0.7 percentage points** to **23.7%**, primarily due to an increased proportion of sales revenue from products with relatively lower gross margins[58](index=58&type=chunk) - Research and development expenses decreased by **13.7%** to **RMB 701.7 million**, with its proportion to revenue decreasing by **1.9 percentage points** to **5.7%**, mainly due to changes in R&D system management and focus on core product R&D[61](index=61&type=chunk) - Profit before tax margin increased by **3.3 percentage points** to **14.0%**, mainly due to a decrease in the ratio of selling and distribution costs and administrative expenses to revenue, and an increase in other income[64](index=64&type=chunk) - Profit attributable to owners of the parent increased by **25.3%** to **RMB 1,294.4 million**[66](index=66&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the Group's total current assets were RMB 28,553.6 million, total current liabilities were RMB 23,103.8 million, and the asset-liability ratio was 63.5%, with positive operating cash flow and increased working capital days Asset and Liability Status (As of June 30) | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Total current assets | 28,553.6 | 26,227.1 | | Total current liabilities | 23,103.8 | 21,209.8 | | Total assets | 43,638.4 | 40,927.7 | | Total liabilities | 31,128.4 | 28,752.5 | | Asset-liability ratio | 63.5% | 63.2% | - Gross trade and bills receivables increased by **13.8%** to **RMB 14,595.4 million**, with trade receivables increasing by 18.4% and bills receivables decreasing by 33.3%[68](index=68&type=chunk) - Interest-bearing bank and other borrowings increased to **RMB 10,889.5 million**, mainly to meet the development needs of emerging industries and daily operations[69](index=69&type=chunk) Cash Flow (For the six months ended June 30) | Cash flow type | 2025 H1 (RMB million) | 2024 H1 (RMB million) | | :--- | :--- | :--- | | Net cash inflow from operating activities | 368.4 | (152.9) | | Net cash inflow from investing activities | 92.6 | (346.7) | | Net cash inflow from financing activities | 460.5 | 1,734.0 | - Average inventory turnover days increased by **24 days** to **106 days**, mainly due to increased inventory in emerging industries and increased overseas stock to ensure timely delivery to overseas markets[71](index=71&type=chunk) - Trade and bills receivables turnover days increased by **2 days** to **204 days**, mainly due to an increased proportion of revenue from products with relatively longer collection cycles[71](index=71&type=chunk) - Trade and bills payables turnover days increased by **40 days** to **228 days**, mainly due to the implementation of offline settlement and extended contract payment cycles[72](index=72&type=chunk) - Financial guarantee contracts have provisions of **RMB 20.7 million** for outstanding loans and lease amounts of **RMB 5,075.7 million**[73](index=73&type=chunk) [Employees and Remuneration Policy](index=31&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 7,843 full-time employees, with a focus on talent development and incentive programs including year-end bonuses, share option schemes, and equity award plans - As of June 30, 2025, the Group had **7,843 full-time employees**[75](index=75&type=chunk) - The Group motivates employees by providing training, year-end bonuses, and implementing share option schemes and equity award plans[75](index=75&type=chunk) [Significant Investments, Acquisitions and Disposals](index=31&type=section&id=Significant%20Investments%2C%20Acquisitions%20and%20Disposals) Sany Marine Heavy Industry (Hunan) and Sany Heavy Steel Structure agreed to sell certain tower assets to Sany Tower Technology for approximately RMB 52.9 million, with no other significant transactions during the reporting period - Sany Marine Heavy Industry (Hunan) and Sany Heavy Steel Structure have agreed to sell certain tower assets to Sany Tower Technology for a total consideration of approximately **RMB 52.9 million**[76](index=76&type=chunk) - For the six months ended June 30, 2025, there were no other significant investments held, nor any significant acquisitions or disposals of subsidiaries, associates, and joint ventures[77](index=77&type=chunk) [Pledged Assets](index=32&type=section&id=Pledged%20Assets) As of June 30, 2025, the Group's pledged bank deposits of approximately RMB 88.0 million were for bank acceptance bill guarantees, with leased land and power charge pledges securing bank loans - Pledged bank deposits of approximately **RMB 88.0 million** are used as guarantees for bank acceptance bills[79](index=79&type=chunk) - Leased land of approximately **RMB 677.4 million** and power charge pledges of approximately **RMB 64.6 million** are used to secure bank loans[79](index=79&type=chunk) [Foreign Exchange Risk](index=32&type=section&id=Foreign%20Exchange%20Risk) As of June 30, 2025, the Group held cash and bank balances denominated in foreign currencies, such as USD and EUR, equivalent to approximately RMB 4,296.7 million, and will monitor and consider hedging foreign exchange risk - The Group's cash and bank balances denominated in foreign currencies such as USD and EUR amounted to approximately **RMB 4,296.7 million**[80](index=80&type=chunk) - The Group will monitor the risks it is exposed to and will consider hedging significant currency risks when necessary[80](index=80&type=chunk) [Events After the Reporting Period](index=32&type=section&id=Events%20After%20the%20Reporting%20Period) As of the announcement date, there were no significant events for the Group after June 30, 2025 - There were no significant events for the Group after June 30, 2025, and up to the date of this announcement[81](index=81&type=chunk) Corporate Governance and Other Information [Social Responsibility](index=32&type=section&id=Social%20Responsibility) The Group actively practices corporate social responsibility, promotes low-carbon development, strengthens R&D capabilities, and implements globalization, digitalization, and low-carbon transformation strategies - The Group actively practices corporate social responsibility, is committed to promoting low-carbon development, and drives globalization, digitalization, and low-carbon transformation strategies by strengthening independent R&D capabilities[82](index=82&type=chunk) - Products such as the EBZ260H full-rock roadheader, upgraded electric heavy forklifts, and pure water hydraulic supports contribute to mine water protection and green transformation of the coal industry, and promote the deep transformation of industrial vehicles towards "intelligence, green, and scenario-based" development[82](index=82&type=chunk)[83](index=83&type=chunk) - The Group actively engages in industry and university-enterprise collaborations to explore innovative paths for AI-driven industrial intelligence[83](index=83&type=chunk) [Corporate Governance](index=33&type=section&id=Corporate%20Governance) The company is committed to establishing sound corporate governance practices, complying with the Corporate Governance Code in Appendix C1 of the Listing Rules, and ensuring business transparency to create shareholder value - The company is committed to establishing sound corporate governance practices and procedures to be accountable to shareholders with transparency and responsible institutions[84](index=84&type=chunk) - The company has adopted the Corporate Governance Code set out in Part 2 of Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and has complied with all applicable code provisions for the six months ended June 30, 2025[84](index=84&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=34&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted the Model Code in Appendix C3 of the Listing Rules as its code of conduct for directors' securities transactions, and all directors confirmed compliance - The company has adopted the Model Code set out in Appendix C3 to the Listing Rules as its own code of conduct for securities transactions[85](index=85&type=chunk) - All directors confirmed that they have complied with the required standards set out in the Model Code for the six months ended June 30, 2025[85](index=85&type=chunk) [Audit Committee](index=34&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors with Mr. Pan Zhaoguo as chairman, has reviewed the Group's unaudited interim financial statements for H1 2025 - The Audit Committee is composed of three independent non-executive directors, with Mr. Pan Zhaoguo as chairman[86](index=86&type=chunk) - The Audit Committee has held meetings to discuss audit, internal control, risk management, and financial reporting matters, and has reviewed the Group's unaudited interim financial statements for the six months ended June 30, 2025[86](index=86&type=chunk) [Review of Interim Financial Statements](index=34&type=section&id=Review%20of%20Interim%20Financial%20Statements) The Group's interim financial statements for the six months ended June 30, 2025, were not audited or reviewed by external auditors but were reviewed by the Audit Committee - The Group's interim financial statements for the six months ended June 30, 2025, have not been audited or reviewed by the company's external auditors[87](index=87&type=chunk) - The interim financial statements were reviewed by the Audit Committee before being recommended to the Board for approval[87](index=87&type=chunk) [Interim Dividend](index=34&type=section&id=Interim%20Dividend) The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2025[88](index=88&type=chunk) [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) For the six months ended June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities, and no treasury shares were held - 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[89](index=89&type=chunk) - As of June 30, 2025, the company did not hold any treasury shares[89](index=89&type=chunk) [Publication of Information on Websites](index=35&type=section&id=Publication%20of%20Information%20on%20Websites) This announcement is published on the HKEX and company websites, and the interim report will be available and dispatched to shareholders in due course - This announcement is published on the HKEX website www.hkexnews.hk and the company's website www.sanyhe.com[90](index=90&type=chunk) - The company's interim report for the six months ended June 30, 2025, will be available on the same websites and dispatched to shareholders in due course[90](index=90&type=chunk) [Board of Directors](index=35&type=section&id=Board%20of%20Directors) As of the announcement date, the Board comprises executive directors Mr. Liang Zaizhong, Mr. Qi Jian, and Mr. Fu Weizhong, non-executive directors Mr. Tang Xiuguo and Mr. Xiang Wenbo, and independent non-executive directors Mr. Pan Zhaoguo, Mr. Hu Jiquan, Mr. Yang Shuyong, and Ms. Zhou Lan - The executive directors are Mr. Liang Zaizhong, Mr. Qi Jian, and Mr. Fu Weizhong[92](index=92&type=chunk) - The non-executive directors are Mr. Tang Xiuguo and Mr. Xiang Wenbo[92](index=92&type=chunk) - The independent non-executive directors are Mr. Pan Zhaoguo, Mr. Hu Jiquan, Mr. Yang Shuyong, and Ms. Zhou Lan[92](index=92&type=chunk)

Market Overview - Global markets showed mixed performance, with the Hang Seng Index closing at 25,830, up 1.94% for the day and 28.76% year-to-date [1] - The A-share market is entering a second bullish phase, with significant increases in client margin sizes at securities firms and a notable rise in ETF investments, reaching $681 billion, surpassing Japan [3][4] Company Analysis Pinduoduo (PDD US) - Pinduoduo reported Q2 2025 revenue growth of 7% year-on-year, reaching 104 billion RMB, in line with expectations, driven by online marketing services [5] - Non-GAAP net profit decreased by 5% to 32.7 billion RMB, but exceeded market expectations by 46%, indicating strong operational performance [5] - The target price has been raised by 9% to $146.30, reflecting a positive outlook despite ongoing investments in platform ecosystem enhancement [5] Jiumaojiu (9922 HK) - Jiumaojiu's revenue for the first half of FY25 decreased by 10% to 2.75 billion RMB, slightly below market expectations [9] - The company anticipates closing 40 to 50 additional stores in the second half of FY25, leading to a total of approximately 100 closures for the year [6] - Despite challenges, there are positive signs of stabilization in same-store sales, with a potential rebound expected from store renovations [6][9] ZhongAn Online (6060 HK) - ZhongAn Online's net profit for the first half of FY25 surged by 11.04 times to 668 million RMB, significantly exceeding market expectations [10] - The property and casualty insurance segment saw a 9.3% increase in total premiums, driven by substantial growth in health and auto insurance [10] - The target price has been raised to 23 HKD, reflecting improved profitability and operational efficiency [10] Greentown Service (2869 HK) - Greentown Service reported a 22.6% increase in net profit for the first half of FY25, with total revenue growing by 6.1% [12] - The company has successfully improved operational efficiency, leading to enhanced profit margins despite industry pressures [12][13] - The target price has been adjusted to 6.61 HKD, based on a revised earnings forecast and valuation adjustments [12][15] Baker Hughes (2149 HK) - Baker Hughes achieved a revenue of 292 million RMB in the first half of FY25, a slight increase from the previous year, maintaining strong profitability with a gross margin of 51.8% [18] - The company continues to expand its product offerings and remains a core recommendation in the semiconductor sector [18][19] - The target price remains at 93 HKD, reflecting confidence in long-term growth prospects [19] Tongda Group (698 HK) - Tongda Group's net profit for the first half of FY25 increased by 394%, driven by reduced financial costs and improved operational efficiency [20] - The company is expected to benefit from upgrades in its main business and expansion in its subsidiary's product lines [20] - The target price has been raised to 0.135 HKD, reflecting improved earnings visibility [20]

Global Market Overview - The Hang Seng Index closed at 25,166, down 0.41% for the day but up 25.45% year-to-date [1] - The Shanghai Composite Index rose by 1.88% to 3,766, with a year-to-date increase of 12.37% [1] - The US markets showed mixed results, with the Dow Jones down 0.05% and the S&P 500 down 0.60%, while the Nasdaq fell by 1.42% [1] Hong Kong Stock Performance - The Hang Seng Financial Index decreased by 0.42% to 44,940, with a year-to-date increase of 27.90% [2] - The Hang Seng Property Index fell by 1.15% to 18,493, but is still up 24.01% year-to-date [2] - Southbound capital saw a net sell-off of HKD 14.68 billion, with major sell-offs in ETFs like the Tracker Fund and Hang Seng China Enterprises [3] Company Insights Guoquan (锅圈) - Guoquan is the leading brand in China's home dining solutions, achieving retail sales of RMB 11.1 billion in 2022, with a market share of 3% [5] - The company operates over 10,150 stores and is expected to generate approximately RMB 6.5 billion in sales for the fiscal year 2024 [5] - Guoquan's C2F model offers advantages to consumers and suppliers, with a diverse product range and a focus on quality and safety [5][6] Baidu - Baidu's Q2 2025 performance exceeded market expectations, with core business revenue of RMB 26.3 billion, a 2% year-on-year decline but 1.6% above consensus [8] - The company is focusing on growth in its autonomous driving and cloud services, which are expected to drive long-term revenue and profit growth [8] Boss Zhipin - Boss Zhipin reported a 10% year-on-year revenue increase to RMB 2.1 billion in Q2 2025, with non-GAAP net profit rising by 31% to RMB 941 million [8] - The company anticipates a revenue growth of 11.4%-13.0% in Q3 2025, driven by an improving supply-demand environment [8] Keren Biotechnology - Keren Biotechnology expects to release significant data at the 2025 ESMO conference, with SKB264 projected to generate sales of RMB 800 million to RMB 1 billion [9][10] - The company is actively advancing multiple Phase III clinical trials for SKB264, targeting various cancer indications [11] WuXi Biologics - WuXi Biologics reported a 16.1% year-on-year revenue increase to RMB 9.953 billion in H1 2025, driven by strong demand in both R&D and manufacturing sectors [13] - The company has raised its full-year revenue growth guidance to 14-16%, reflecting robust client demand [13][14] ZTO Express - ZTO Express has adjusted its annual package volume growth forecast to 14-18%, down from 20-24%, in response to government policies [16] - Despite a 26% year-on-year profit decline in Q2 2025, the company anticipates that single-package prices may exceed expectations, serving as a catalyst for stock price growth [16] China General Nuclear Power Corporation - China General Nuclear Power Corporation issued a profit warning for H1 2025, expecting a net loss between HKD 40 million and HKD 90 million, aligning with previous forecasts [17] - The company has signed an underwriting agreement with its parent company, which is expected to significantly increase contract prices starting in 2026, driving future profit growth [17]

Global Market Overview - The Hang Seng Index closed at 25,177, down 0.37% for the day but up 25.51% year-to-date [1] - The S&P 500 closed at 6,449, down 0.01% for the day and up 9.65% year-to-date [1] - The Shanghai Composite Index rose by 0.85% to 3,728, with a year-to-date increase of 11.23% [1] Industry Insights - The healthcare sector showed resilience, with major life sciences companies reporting better-than-expected performance in 2Q25, leading to upward revisions in annual guidance [5][6] - The pharmaceutical industry is facing pressure on profit margins due to external factors, but major pharmaceutical companies continue to invest in R&D, indicating a stable outlook for innovation [8] - The retail sector in the U.S. demonstrated resilience with a monthly growth rate increase from 0% in the first half of the year to 0.7% in July, indicating strong consumer spending [4] Company Analysis - Tongcheng Travel reported a total revenue of RMB 4.7 billion in 2Q25, a 10% year-on-year increase, with adjusted net profit rising by 18% to RMB 775 million, exceeding expectations [8] - Xtep's sales for the first half of 2025 grew by 7% to RMB 6.8 billion, with net profit increasing by 21% to RMB 913 million, surpassing forecasts [13] - Leap Motor achieved a revenue of RMB 14.2 billion in 2Q25, a 42% quarter-on-quarter increase, marking its first positive operating profit [14] Investment Ratings - Leap Motor is rated as a "Buy" with a target price of HKD 80, reflecting a strong growth outlook driven by new model launches and expanding sales [14] - Xtep maintains a "Buy" rating with a target price of HKD 7.39, supported by robust sales performance and operational efficiency [12] - Tongcheng Travel is also rated as a "Buy," with a target price of HKD 24.00, based on its strong core business performance [8]