Group 1 - The forum "China-ASEAN Free Trade Area 3.0 Green Value Chain Partnership" aims to promote the greening of regional industrial and supply chains, contributing to global carbon neutrality and sustainable development [1] - China plays a crucial role in the global value chain greening as the world's largest exporter and second-largest importer [1] - Discussions focused on the adaptability and synergy of green low-carbon policies for agricultural products and sustainable transformation practices in key industrial sectors [1] Group 2 - Guangxi has established 105 national-level green factories, 11 green parks, and 1 zero-carbon park, with green factory output accounting for 35% of the total industrial output value [2] - The sugar industry in Guangxi has achieved a circular economy output exceeding 100 billion yuan, with a 100% utilization rate of by-products like bagasse [2] - Guangxi is building a clean energy hub for ASEAN, with over 70% of installed capacity from clean energy sources and cross-border electricity exchanges exceeding 74 billion kilowatt-hours [2] Group 3 - Guangxi's exports to ASEAN reached 275.09 billion yuan in the first eight months of the year, leading among central and western provinces in China, with a nearly 50% increase in exports of electric passenger vehicles [3] - Consensus was reached to strengthen policy dialogue and technical exchanges, co-establish a regional green value chain standard system, and deepen collaboration in industrial and supply chains [3]

Core Insights - Central enterprises in China are actively participating in the energy transition, contributing to the construction of a green energy network that spans the country, thereby promoting a shift towards a cleaner and low-carbon energy structure [1][4][10] Group 1: Green Energy Projects - The "Ningdian into Xiang" project has successfully transmitted over 900 million kilowatt-hours of green electricity to Hunan as of September 25, 2023, with an annual capacity of over 36 billion kilowatt-hours [2][4] - The Huaneng Longdong Energy Base is set to begin operations in October 2023, enhancing Shandong's power receiving capacity to 38 million kilowatts [3] - The China Three Gorges Corporation's clean energy corridor has generated 32.595 billion kilowatt-hours in July 2023 alone, sufficient to meet the electricity needs of the entire population of China for about seven days [3] Group 2: Technological Innovations - The successful installation of a 26-megawatt offshore wind turbine by Dongfang Electric Group marks a significant advancement in high-end equipment manufacturing, setting new records for wind turbine capacity and rotor diameter [5][6] - China Baowu's development of laser-etched silicon steel could save 90 billion kilowatt-hours annually if applied to existing transformers, equivalent to the output of a Three Gorges power station [7] - The digital control system upgrade at the Daya Bay Nuclear Power Base has achieved a "zero defect" operation, enhancing nuclear safety [7] Group 3: Impact on Society - The establishment of 15,700 charging stations by the Southern Power Grid has enabled comprehensive coverage in rural areas, facilitating the use of electric vehicles [10] - China National Offshore Oil Corporation is contributing over 54 million kilowatt-hours of clean energy annually to Weizhou Island through a multi-energy complementary approach [10] - The integration of photovoltaic power generation with livestock farming in the Hongyuan Yak Photovoltaic Power Station has generated 450 million kilowatt-hours, providing sustainable income opportunities for local herders [10]

Domestic News - The Ministry of Industry and Information Technology plans to comprehensively enhance the intelligence and connectivity capabilities of automotive enterprises, raising production access thresholds and emphasizing cybersecurity and data security requirements [7] - In the first three quarters, the export share of domestic brand electric vehicles reached 59.5%, reflecting a significant increase compared to the previous year [8] - Starting November 1, the Ministry of Public Security will implement a fully digital process for new car registration, allowing users to complete the process without leaving home [9] - China has established the world's largest charging network, with 17.348 million charging facilities, equating to two charging stations for every five vehicles [10] - Seres Group has made significant progress in its listing process on the Hong Kong Stock Exchange, planning to issue up to 331 million shares [11] - XPeng Motors has begun exporting its MONA series to the Middle East and Africa, marking its expansion in overseas markets [12] - Tesla's Shanghai Gigafactory has initiated production capacity expansion for the fourth quarter of 2025 [13] - BYD's flagship store in South Africa has officially opened, indicating the company's growth in the African market [13] International News - The average price of new cars in the U.S. has surpassed $50,000 for the first time, driven by increased sales of luxury and electric vehicles [15] - The Manitoba provincial government in Canada is urging the federal government to eliminate the 100% tariff on Chinese electric vehicles, citing adverse effects on bilateral trade [16] - Renault plans to launch a new electric vehicle model priced below $20,000, leveraging advancements in battery technology to reduce production costs by 40% [17] - SK On is expanding its battery production facility in Georgia, USA, to include capabilities for both electric vehicle batteries and energy storage systems [18][19] Commercial Vehicles - Weishi Energy and the Brazilian Institute of Technology have announced a strategic partnership to promote the commercialization of hydrogen-powered heavy trucks in Brazil [20] - Dongfeng Commercial Vehicle has formed a strategic cooperation with Shijiazhuang Anruike to develop integrated vehicle and trailer solutions, promoting the use of clean energy [21] - The Remote Star Intelligent F3E has been launched in northern and eastern regions, addressing operational challenges faced by local users [22] - Shenzhen will implement a full ban on National III diesel trucks starting January 1, 2026, following previous restrictions [23]

(Incorporated in the Cayman Islands with limited liability) （於開曼群島註冊成立之有限公司） China Harmony Auto Holding Limited 中國和諧汽車控股有限公司 （Stock Code 股份代號：3836） NOTIFICATION LETTER 通知信函 Dear Non-Registered Shareholders(Note 1) 26 September 2025 China Harmony Auto Holding Limited (the "Company") – Notice of publication of Interim Report 2025 (the "Current Corporate Communication") The English and Chinese versions of the Company's Current Corporate Communications are available on the Company's website at www.hexieauto.com ...

China Harmony Auto Holding Limited 中國和諧汽車控股有限公司 (Incorporated in the Cayman Islands with limited liability) （於開曼群島註冊成立之有限公司） （Stock Code 股份代號：3836） NOTIFICATION LETTER 通知信函 Dear Registered Shareholders, 26 September 2025 China Harmony Auto Holding Limited (the "Company") – Notice of publication of Interim Report 2025 (the "Current Corporate Communication") The English and Chinese versions of the Company's Current Corporate Communications are now available on the Company's website at www.hexieauto.com and th ...

Company Information [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) This section lists the company's board members and their roles in the audit, remuneration, and nomination committees, including executive directors, independent non-executive directors, and committee chairpersons - The Board of Directors comprises executive directors Feng Changge (Chairman), Feng Shaolun (Vice Chairman), Liu Fenglei (President), Ma Lintao (Vice President), Cheng Junqiang (Vice President), and independent non-executive directors Wang Nengguang, Liu Guoxun, and Song Jiaheng[3](index=3&type=chunk) - The Audit Committee Chairman is Mr. Wang Nengguang, the Remuneration Committee Chairman is Mr. Song Jiaheng, and the Nomination Committee Chairman is Mr. Feng Changge[3](index=3&type=chunk) [Company Contact and Registration Information](index=3&type=section&id=Company%20Contact%20and%20Registration%20Information) This section provides the company's legal counsel, auditor, principal bankers, registered office, principal place of business, and share registrar information - The Company Secretary is Ms. Wong Wai Yee, and authorized representatives are Mr. Liu Fenglei and Ms. Wong Wai Yee[3](index=3&type=chunk) - The legal counsel is Haiwen & Partners, and the auditor is Beijing Xinghua Dingfeng Certified Public Accountants Co., Ltd[3](index=3&type=chunk) - The company's stock code is **3836**, and its website is www.hexieauto.com[4](index=4&type=chunk) Management Discussion and Analysis [Industry Overview and Outlook](index=5&type=section&id=Industry%20Overview%20and%20Outlook) In the first half of 2025, China's passenger vehicle retail sales increased by 10.8% year-on-year, with new energy vehicle sales growing by 33.3%; the luxury car market faced challenges, experiencing an 11.8% year-on-year decline in sales, while Chinese new energy vehicle brands demonstrated exceptional export performance, growing by 48.0% Overview of China's Passenger Vehicle Market in H1 2025 | Metric | H1 2025 | Y-o-Y Growth | | :--- | :--- | :--- | | Passenger Vehicle Retail Sales | approx. 10.9 million units | 10.8% | | Cumulative NEV Sales | 5.5 million units | 33.3% | - The luxury car market's cumulative sales in H1 2025 were approximately **1.2 million units**, a **11.8% decrease** compared to the same period last year[7](index=7&type=chunk) - China's new energy vehicle exports significantly increased by **48.0%** year-on-year, with BYD's exports growing by **1.3 times**[8](index=8&type=chunk) - Fiscal policies, such as trade-in subsidies and NEV purchase tax incentives, are expected to continue boosting market demand[8](index=8&type=chunk) [Business Review and Outlook](index=6&type=section&id=Business%20Review%20and%20Outlook) In the first half of 2025, the Group achieved a significant 60.6% increase in total sales, driven by strategic overseas market expansion and successful implementation of the '1+2' operating strategy in the domestic market, which also delivered stable operating net profit through focused brand and regional advantages, enhanced synergy, and refined management - Total sales reached **30,666 units** in H1 2025, a significant **60.6% year-on-year increase**[9](index=9&type=chunk) - Sales in Hong Kong and overseas markets reached **15,725 units**, accounting for **51.3%** of total sales and becoming the primary growth driver[9](index=9&type=chunk) - Excluding non-recurring losses of **RMB 32.5 million** related to store closures, adjusted net profit was **RMB 20.7 million**, representing a significant turnaround[9](index=9&type=chunk) [Mainland China Market](index=6&type=section&id=Mainland%20China%20Market) The Mainland China market achieved stable operating net profit through a '1+2' operating strategy (focusing on performance profitability, advantageous brands and regions, and efficient quality) and prudent M&A development; the Group enhanced business synergy, optimized sales pace and model structure, and improved after-sales service gross margin and overall operational efficiency through deep customer demand analysis and refined management - Adjusted operating net profit for the Mainland China market (excluding non-recurring losses related to store closures) was approximately **RMB 17.9 million**[10](index=10&type=chunk) - Adhering to the '1+2' operating strategy, focusing on 3 ultra-luxury brands (Bentley, Rolls-Royce, Ferrari) and 2 luxury brands (BMW, Lexus)[10](index=10&type=chunk) - In H1 2025, the comprehensive gross margin for after-sales services increased from **38.3%** in the same period last year to **39.2%**, a year-on-year increase of approximately **1 percentage point**[12](index=12&type=chunk) - Added **3 Denza brand experience showrooms** to capitalize on the growth opportunities in China's electric vehicle market[13](index=13&type=chunk) [Hong Kong and Overseas Markets](index=8&type=section&id=Hong%20Kong%20and%20Overseas%20Markets) The Group's international new energy vehicle market strategy is showing initial results, establishing a global strategic partnership with BYD, operating 40 4S centers, 36 showrooms, and 6 service centers across Asia-Pacific, Europe, and Africa, with 29 new outlets added in the first half; BYD sales lead in Hong Kong, while Indonesia, Cambodia, and the Philippines markets show significant sales growth, all adopting a 'low-cost, high-efficiency' operating model - Established a global strategic partnership with BYD Company, a leading Chinese automobile manufacturer, for distribution and after-sales services[14](index=14&type=chunk) - As of June 30, 2025, operating **40 4S centers**, **36 showrooms**, and **6 service centers** in Asia, Europe, and Africa, with a total of **29 new outlets** added in the first half[14](index=14&type=chunk) Sales Performance in Hong Kong and Overseas Markets (H1 2025) | Market | Sales (units) | Y-o-Y Growth | | :--- | :--- | :--- | | Hong Kong (BYD) | 4,762 | - | | Indonesia | 2,538 | 226% | | Cambodia | 1,610 | 444% | | Philippines | 1,767 | 89% | - Overseas regions adopt a 'low-cost, high-efficiency' operating model, with lower single-store investment and fewer employees than traditional 4S stores in China[14](index=14&type=chunk) [Future Outlook](index=8&type=section&id=Future%20Outlook) The Group's future systematic deployment will focus on 'framework building, coverage expansion, foundation establishment, refinement, breadth expansion, and deep impact,' aiming to complete global network layout, increase core market density, build localized management and profitability systems, strengthen refined operations, expand NEV-related businesses, and continuously enhance core competitiveness to become the world's largest NEV dealer group - Future plans include rapidly advancing new market development in the Middle East, Africa, and Americas, based on Asia-Pacific and Europe, to complete the global network framework layout[16](index=16&type=chunk) - Continuously building local-demand-oriented management foundations and profitability systems, including talent management, business process standards, used car market business improvement, and integration of derivative business resources like insurance and finance[16](index=16&type=chunk) - Expanding NEV-related businesses such as energy storage, charging solutions, battery repair and recycling, zero-carbon parks, and supporting facilities[16](index=16&type=chunk) - Committed to becoming the world's largest new energy vehicle dealer group[16](index=16&type=chunk) [Financial Review](index=9&type=section&id=Financial%20Review) In the first half of 2025, the Group's total revenue increased by 29.1% to RMB 9,636.6 million, primarily driven by significant growth in automobile and other sales, especially strong performance in Hong Kong and overseas markets; despite a 52.8% increase in gross profit, the period still recorded a loss due to increased selling and distribution expenses and administrative expenses, though the loss significantly narrowed year-on-year - Total revenue for H1 2025 was **RMB 9,636.6 million**, a **29.1% increase** from H1 2024[18](index=18&type=chunk) - Gross profit increased by **52.8%** from **RMB 366.3 million** in H1 2024 to **RMB 559.8 million**, with gross margin improving from **4.9%** to **5.8%**[23](index=23&type=chunk) - Loss attributable to owners of the Company decreased to **RMB 11.8 million**, compared to a loss of **RMB 76.3 million** in H1 2024[31](index=31&type=chunk) [Revenue Analysis](index=9&type=section&id=Revenue%20Analysis) The Group's total revenue in H1 2025 increased by 29.1% to RMB 9,636.6 million; automobile and other sales revenue grew significantly by 36.7%, accounting for 89.0% of total revenue, primarily due to international sales network expansion, while after-sales service and finance lease service revenues decreased; geographically, Hong Kong and overseas revenue surged 5.0 times, comprising 40.5% of total revenue, whereas Mainland China revenue declined by 15.8% Revenue by Type of Goods or Services (RMB million) | Revenue Source | H1 2025 | H1 2024 | Y-o-Y Change | Share of Total Revenue (2025) | | :--- | :--- | :--- | :--- | :--- | | Automobile and Other Sales | 8,577.4 | 6,273.6 | +36.7% | 89.0% | | After-sales Services | 1,044.7 | 1,170.5 | -10.7% | 10.8% | | Finance Lease Services | 14.5 | 22.1 | -34.4% | 0.2% | Revenue by

Core Insights - The article highlights the rapid deployment of the "Repair Management Function" by the Southern Power Grid Internet Company in response to Typhoon "Hagupit," enhancing emergency repair efficiency and coordination [1][2] Group 1: Emergency Response Enhancements - The new repair management function addresses three major pain points: slow command transmission, unclear task assignment, and difficult documentation [1] - The system allows for quick creation of emergency tasks, precise assignment of repair tasks, and standardized management of repair process documentation [1] Group 2: Digital Control Platform - The Southern Power Grid's Smart Engineering Information System is the first fully digital control platform for power grid infrastructure in China, achieving 100% coverage of Southern Power Grid construction projects [2] - The system has authenticated over 870,000 construction personnel, managed over 360,000 construction projects, and deployed more than 25,000 IoT sensing devices [2] - Prior to Typhoon "Hagupit," the system entered "Typhoon Warning Mode," sending out 28,715 warning messages to remind construction sites to secure equipment and evacuate personnel [2]

Economic Performance - In July 2025, the industrial added value in Henan province grew by 8.8%, outperforming the national average by 3.1 percentage points[20] - The total retail sales of consumer goods in Henan reached 2125.27 billion yuan, with a year-on-year growth of 4.8%, exceeding the national growth rate by 1.1 percentage points[21] - Fixed asset investment in Henan increased by 5.6% year-on-year, higher than the national growth rate of 1.6%[23] Market Trends - In August 2025, the Henan Index rose by 12.68%, surpassing the Shanghai Composite Index's increase of 7.97% and the CSI 300 Index's increase of 10.33%[55] - The cumulative increase of the Henan Index for the first eight months of 2025 was 28.59%, consistently outperforming major benchmark indices[55] Investment Landscape - As of the end of August 2025, Henan had a total of 138 listed companies, with an A-share market capitalization of 17794.34 billion yuan, reflecting a quarter-on-quarter growth of 13.34%[6] - In the first eight months of 2025, the total amount of IPOs approved nationwide was 50, with Henan having only one company in the pipeline[6] Policy Environment - In August 2025, the financial regulatory authorities introduced a series of policies aimed at expanding consumption and supporting industrial transformation[28] - The Henan provincial government launched multiple policies to support technological innovation and the development of strategic emerging industries[34]

Core Viewpoint - The construction of the Zang-Guangdong DC project marks the initiation of the world's strongest flexible DC transmission project, which will deliver over 43 billion kilowatt-hours of clean energy annually to the Guangdong-Hong Kong-Macao Greater Bay Area after its full operation in 2029 [2][3]. Group 1: Project Overview - The Zang-Guangdong DC project is a key cross-province transmission project under China's 14th Five-Year Plan, with a total length of approximately 2,681 kilometers and a transmission capacity of 10 million kilowatts [2][3]. - The project is expected to replace approximately 12 million tons of standard coal consumption and reduce carbon dioxide emissions by about 33 million tons annually [2][3]. Group 2: Investment and Economic Impact - The total investment for the Zang-Guangdong DC project is approximately 53.2 billion yuan, with an additional investment of over 150 billion yuan for the supporting "water-wind-solar integrated" power generation base [3]. - The project is anticipated to create over 100,000 direct jobs during peak construction, significantly promoting the economic and social development of Tibet [3]. Group 3: Technological Challenges and Innovations - The project faces significant challenges, including the development of new technologies for ultra-high altitude DC transmission and the integration of 20 million kilowatts of renewable energy into a weak grid [4][5]. - The project aims to establish a new model for energy production and consumption, contributing to China's dual carbon goals through high-level technological self-reliance and innovation [4][5]. Group 4: Collaborative Efforts - The Zang-Guangdong DC project is a collaboration between China Southern Power Grid Co., Ltd. and State Grid Corporation of China, marking another significant clean energy transmission project following previous successful collaborations [5]. - The project will leverage advanced technologies and equipment, including high-power semiconductor devices and digital twin technology, to enhance operational efficiency and reduce maintenance needs in remote areas [5].

Investment Rating - The report gives a "Buy" rating for the company, with a target price range of HKD 3.28 to HKD 4.11, corresponding to a market capitalization range of HKD 49.93 billion to HKD 62.57 billion [6]. Core Views - The company is a leading luxury and ultra-luxury car dealer in China, with a strategic shift towards new energy vehicles (NEVs) in partnership with BYD, aiming to expand its market presence in Hong Kong and overseas [6][12]. - The company has successfully established 100 BYD stores in Hong Kong and overseas within two years, leveraging its strong dealership capabilities and operational experience [6][48]. - The company's revenue from Hong Kong and overseas markets has increased significantly, with a fivefold growth in the first half of 2025, driven by the sales of BYD vehicles [19][22]. Summary by Sections Investment Highlights - The company focuses on luxury and ultra-luxury car sales, providing a full lifecycle service including new car sales, financing, insurance, and after-sales services [8][12]. - In 2024, the company ranked 26th among the top 100 automotive dealers in China, with a total revenue of CNY 17.067 billion and total vehicle sales of 48,000 units [12][17]. Partnership with BYD - The collaboration with BYD began in 2023, aiming to accelerate the expansion of sales channels in Asia and Europe, transitioning towards NEVs and export markets [6][12]. - The partnership has evolved from a business collaboration to a capital cooperation, with BYD acquiring a 10% stake in the company's overseas operations [6][9]. Financial Projections - The company is projected to achieve revenues of CNY 28.103 billion, CNY 38.488 billion, and CNY 44.961 billion from 2025 to 2027, with corresponding net profits of CNY 0.61 billion, CNY 2.43 billion, and CNY 4.16 billion [2][6]. - The earnings per share (EPS) are expected to be CNY 0.04, CNY 0.16, and CNY 0.27 for the same period [2][6]. Market Performance - In the first half of 2025, the company reported a revenue of CNY 9.64 billion, a year-on-year increase of 25.7%, with significant contributions from Hong Kong and overseas markets [19][22]. - The gross margin improved to 5.8%, with new car sales margins turning positive for the first time [24][32]. Operational Efficiency - The company has maintained a stable inventory turnover rate of 4.64 times, while the accounts receivable turnover rate decreased due to longer payment cycles in overseas markets [38][41]. - As of the first half of 2025, the company's debt ratio was 55.8%, indicating a healthy financial position with sufficient cash reserves [41][42].