Earnings release
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– 1 – Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. (a joint stock company incorporated in the People’s Republic of China with limited liability) (Stock Code: 1133 ) INTERIM RESULTS ANNOUNCEMENT 2026 The Board of Directors (the “Board”) of Harbin Electric Company Limited (the “Company ”) hereby announces the operating results of the Company and its subsidiaries for the six months ended 30 June 2026, which were prepared in accordance with the Chinese Enterprises Accounting Standard. Such operating results have not been audited but have been reviewed by ShineWing Certified Public Accountants LLP. Unless otherwise specified, the currency mentioned in this report was Renminbi.
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– 2 – CONSOLIDATED BALANCE SHEET June 30, 2026 Prepared by: Harbin Electric Company Limited Item Notes June 30, 2026 December 31, 2025 Current assets: – – Monetary fund 20,109,049,667.75 15,245,928,716.21 Settlement reserves 0.00 0.00 Lendings to banks and other financial institutions 0.00 0.00 Financial assets held for trading 2,000,000.00 2,000,000.00 Derivative financial assets 0.00 0.00 Notes receivable 747,537,061.53 608,511,782.89 Accounts receivable Note 8 6,252,968,327.85 5,759,220,668.60 Receivables financing 742,817,834.41 570,947,744.81 Advances to suppliers 7,380,736,718.34 7,844,056,661.37 Premiums receivable 0.00 0.00 Reinsurance accounts receivable 0.00 0.00 Reinsurance contract reserves receivable 0.00 0.00 Other receivables 1,294,337,647.20 1,048,305,666.41 Including: Interest receivable 15,156,565.09 10,941,635.51 Dividends receivable 12,874,821.31 8,842,879.26 Financial assets held under resale agreements 975,000,000.00 1,072,500,000.00 Inventories 20,250,440,250.96 18,856,189,846.69 Including: Data resources 0.00 0.00 Contract assets 10,703,925,632.86 9,078,279,080.29 Held-for-sale assets 0.00 0.00 Non-current assets due within one year 508,692,129.85 471,894,177.66 Other current assets 4,553,914,640.90 4,392,650,137.09 Total current assets 73,521,419,911.65 64,950,484,482.02
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– 3 – Item Notes June 30, 2026 December 31, 2025 Non-current assets: – – Disbursement of loans and advances to customers 0.00 0.00 Debt investments 0.00 0.00 Other debt investments 1,012,399,380.68 1,010,844,608.08 Long-term receivables 601,156,405.11 607,481,090.17 Long-term equity investments 1,538,752,037.04 1,456,292,677.92 Other equity instrument investments 526,775,750.78 807,494,380.89 Other non-current financial assets 0.00 0.00 Investment properties 189,501,608.50 194,265,674.38 Fixed assets 6,755,061,892.31 6,720,446,609.37 Construction in progress 436,967,130.07 517,433,811.07 Bearer biological assets 0.00 0.00 Oil and gas assets 0.00 0.00 Right-of-use assets 9,194,602.59 13,401,594.56 Intangible assets 994,394,517.54 1,031,082,088.34 Including: Data resources 0.00 0.00 Development expenditures 70,945,754.71 70,009,430.39 Including: Data resources 0.00 0.00 Goodwill 0.00 0.00 Long-term deferred expenses 17,462,583.47 21,090,329.68 Deferred tax assets 790,911,805.39 792,653,176.63 Other non-current assets 469,991,633.08 469,815,517.39 Including: Physical assets reserve specifically authorized 0.00 0.00 Total non-current assets 13,413,515,101.27 13,712,310,988.87 Total assets 86,934,935,012.92 78,662,795,470.89 CONSOLIDATED BALANCE SHEET (CONTINUED) June 30, 2026 Prepared by: Harbin Electric Company Limited
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– 4 – Item Notes June 30, 2026 December 31, 2025 Current liabilities: – – Short-term borrowings 3,646,130,373.43 3,858,171,045.87 Borrowings from the central bank 0.00 0.00 Borrowings from banks and other financial institutions 0.00 0.00 Financial liabilities held for trading 0.00 0.00 Derivative financial liabilities 0.00 0.00 Notes payable 1,465,963,747.71 1,844,560,816.94 Accounts payable Note 9 18,671,009,916.02 13,899,099,770.11 Advances from customers 0.00 0.00 Contract liabilities 37,037,406,457.15 34,084,749,651.29 Financial assets sold under repurchase agreements 0.00 0.00 Customer bank deposits and interbank deposits 822,705,181.51 799,351,790.47 Employee compensation payable 703,611,003.79 1,152,570,535.31 Taxes payable 313,454,344.67 527,334,616.51 Other payables 1,454,011,109.48 413,233,532.43 Including: Interest payable 8,758,466.70 7,198,762.54 Dividends payable 803,359,804.53 2,772,996.53 Held-for-sale liabilities 0.00 0.00 Non-current liabilities due within one year 342,907,881.34 322,778,137.32 Other current liabilities 463,293,292.81 647,966,508.65 Total current liabilities 64,920,493,307.91 57,549,816,404.90 CONSOLIDATED BALANCE SHEET (CONTINUED) June 30, 2026 Prepared by: Harbin Electric Company Limited
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– 5 – Item Notes June 30, 2026 December 31, 2025 Non-current liabilities: – – Long-term borrowings 292,928,900.59 252,162,846.82 Bonds payable 0.00 0.00 Including: Preferred stock 0.00 0.00 Perpetual bonds 0.00 0.00 Lease liabilities 3,104,064.65 3,489,629.62 Long-term payables 20,232,639.43 20,232,639.43 Long-term employee compensation payable 250,513,826.83 251,064,822.91 Estimated liabilities 1,747,183,297.11 1,827,255,473.16 Deferred income 246,470,864.86 277,260,013.60 Deferred tax liabilities 5,115,431.40 5,249,501.44 Other non-current liabilities 1,495,000.00 0.00 Total non-current liabilities 2,567,044,024.87 2,636,714,926.98 Total liabilities 67,487,537,332.78 60,186,531,331.88 CONSOLIDATED BALANCE SHEET (CONTINUED) June 30, 2026 Prepared by: Harbin Electric Company Limited
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– 6 – Item Notes June 30, 2026 December 31, 2025 Shareholders’ equity – – Share capital 2,236,276,000.00 2,236,276,000.00 Other equity instruments 0.00 0.00 Including: Preferred stock 0.00 0.00 Perpetual bonds 0.00 0.00 Capital reserves 5,491,796,378.02 5,491,563,058.67 Less: Treasury stocks 0.00 0.00 Other comprehensive income 31,532,380.50 58,895,147.51 Special reserves 75,851,954.86 62,650,692.88 Surplus reserves 1,033,247,486.89 1,033,247,486.89 General risk reserves 0.00 0.00 Retained earnings 9,912,097,270.79 8,918,841,633.88 Total shareholders’ equity attributable to the parent company 18,780,801,471.06 17,801,474,019.83 Non-controlling interests 666,596,209.08 674,790,119.18 Total shareholders’ equity 19,447,397,680.14 18,476,264,139.01 Total liabilities and shareholders’ equity 86,934,935,012.92 78,662,795,470.89 CONSOLIDATED BALANCE SHEET (CONTINUED) June 30, 2026 Prepared by: Harbin Electric Company Limited
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– 7 – CONSOLIDATED INCOME STATEMENT January to June 2026 Prepared by: Harbin Electric Company Limited Item Notes January to June 2026 January to June 2025 I. Total operating revenue 24,996,823,074.14 22,696,104,178.47 Including: Operating revenue Note 1 24,799,157,892.05 22,474,007,780.48 Interest income 197,665,182.09 222,095,831.95 Fe e and commission income 0.00 566.04 II. Total operating cost 22,950,488,365.52 21,442,004,500.37 Including: Operating cost 21,079,848,238.35 19,766,182,792.21 Interest expenses 3,248,417.72 2,326,441.12 Fe e and commission expenses 266,484.39 42,007.72 Taxes and surcharges 120,991,535.85 98,183,589.17 Selling expenses 281,452,526.77 238,976,218.92 Administrative expenses Note 2 861,879,870.36 758,385,864.32 R&D expenses 460,574,196.73 432,061,486.86 Financial expenses 142,227,095.35 145,846,100.05 Add: Other income 107,142,242.77 126,367,654.23 Investment income 75,286,713.20 135,387,812.97 Exchange income 7,124.41 106,711.56 In come from changes in fair value 3,603,025.00 -5,830,192.40 Credit impairment loss Note 3 -231,082,794.02 -196,485,698.47 Asset impairment loss Note 4 8,726,490.83 -93,274,801.94 Income from assets disposal 49,306.90 2,408,683.04
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– 8 – Item Notes January to June 2026 January to June 2025 III. Operating profit 2,010,066,817.71 1,222,779,847.09 Add: Non-operating revenue 51,669,249.59 14,383,265.51 Less: Non-operating expenses 5,038,681.14 9,727,397.14 IV. Total profit 2,056,697,386.16 1,227,435,715.46 Less: Income tax expenses Note 7 334,762,770.33 171,103,088.32 V. Net profit 1,721,934,615.83 1,056,332,627.14 (I) Cl assified according to operating continuity – – 1. Ne t profit from going concern 1,721,934,615.83 1,056,332,627.14 2. Ne t profit from discontinued operations 0.00 0.00 (II) Cl assified according to attribution of the ownership – – 1. Ne t profit attributable to owners of the parent company 1,717,898,111.62 1,050,891,055.16 2. Mi nority interest income 4,036,504.21 5,441,571.98 VI. Ne t of tax of other comprehensive income 46,580,995.75 85,272,494.20 Ne t of tax of other comprehensive income attributable to the owner of the parent company 48,581,566.28 82,407,042.92 CONSOLIDATED INCOME STATEMENT (CONTINUED) January to June 2026 Prepared by: Harbin Electric Company Limited
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– 9 – Item Notes January to June 2026 January to June 2025 (I) Ot her comprehensive income that cannot be reclassified into profit or loss 74,371,741.87 -15,748,964.76 1. Ch anges arising from re-measurement of the defined benefit plan 0.00 0.00 2. Ot her comprehensive income that cannot be reclassified into profit or loss under the equity method 0.00 0.00 3. Ch anges in fair value of other equity instrument investments 74,371,741.87 -15,748,964.76 4. Ch anges in fair value of the Company’s credit risk 0.00 0.00 (II) Ot her comprehensive income to be reclassified into profit or loss -25,790,175.59 98,156,007.68 1. Ot her comprehensive income to be transferred into profit or loss under the equity method 0.00 0.00 2. Ch anges in fair value of other debt investments -12,523,048.44 0.00 3. Am ount of financial assets reclassified into other comprehensive income 0.00 0.00 4. Pr ovision for credit impairment of other debt investments -7,704,942.50 28,972,896.22 CONSOLIDATED INCOME STATEMENT (CONTINUED) January to June 2026 Prepared by: Harbin Electric Company Limited
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– 10 – Item Notes January to June 2026 January to June 2025 5. Re serves for cash flow hedge (effective parts of cash flow hedging profit or loss) -1,270,750.00 70,036,659.28 6. Tr anslation difference of foreign currency financial statements -4,291,434.65 -853,547.82 7. Others 0.00 0.00 Ne t of tax of other comprehensive income attributable to minority shareholders -2,000,570.53 2,865,451.28 VII. Total comprehensive income 1,768,515,611.58 1,141,605,121.34 To tal comprehensive income attributable to shareholders of the parent company 1,766,479,677.90 1,133,298,098.08 To tal comprehensive income attributable to minority shareholders 2,035,933.68 8,307,023.26 VIII. Earnings per share – – (I) Basic earnings per share Note 6 0.77 0.47 (II) Diluted earnings per share 0.77 0.47 CONSOLIDATED INCOME STATEMENT (CONTINUED) January to June 2026 Prepared by: Harbin Electric Company Limited
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– 11 – CONSOLIDATED CASH FLOW STATEMENT January to June 2026 Prepared by: Harbin Electric Company Limited Item Notes January to June 2026 January to June 2025 I. Cash flows from operating activities: – – Ca sh received from sales of goods and provision of services 26,099,765,537.82 25,227,691,402.91 Ne t increase in deposits from customers and placements from banks and other financial institutions 23,353,391.04 42,946,235.84 Ne t increase in borrowings from other financial institutions 61,989,065.36 0.00 Ca sh received from interests, fees and commissions 194,687,676.95 222,274,505.82 Ne t increase in repurchase business funds 100,000,000.00 -300,000,000.00 Re funds of taxes and surcharges received 105,285,064.14 126,282,034.87 Ot her cash received relating to operating activities 1,384,124,983.36 904,359,184.89 Su btotal of cash inflows from operating activities 27,969,205,718.67 26,223,553,364.33
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– 12 – Item Notes January to June 2026 January to June 2025 Ca sh paid for the purchase of goods and receipt of services 17,877,966,605.40 16,297,606,745.02 Ne t increase in loans and advances to customers 0.00 0.00 Ne t increase in deposits in the central bank and other financial institutions 78,173,497.06 2,772,902,820.78 Ne t increase in lendings to banks and other financial institutions 0.00 0.00 Ca sh paid for interests, fees and commissions 6,857,683.54 1,571,804.57 Ca sh paid to and on behalf of employees 1,745,127,792.60 1,564,595,891.18 Taxes and surcharges paid 1,388,331,006.35 825,034,852.49 Ot her cash paid relating to operating activities 524,987,886.14 1,569,747,716.98 Su btotal of cash outflows from operating activities 21,621,444,471.09 23,031,459,831.02 Ne t cash flows from operating activities 6,347,761,247.58 3,192,093,533.31 CONSOLIDATED CASH FLOW STATEMENT(CONTINUED) January to June 2026 Prepared by: Harbin Electric Company Limited
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– 13 – Item Notes January to June 2026 January to June 2025 II. Cash flows from investing activities: – – Ca sh received from investment recovery 2,110,158,116.90 1,700,000,000.00 Ca sh received from acquirement of investment income 3,549,485.15 9,405,651.72 Ne t cash received from disposal of fixed assets, intangible assets and other long-term assets 16,059.00 5,077,500.00 Ne t cash received from disposal of subsidiaries and other business entities 0.00 0.00 Ot her cash received relating to investing activities 0.00 0.00 Su btotal of cash inflows from investing activities 2,113,723,661.05 1,714,483,151.72 Ca sh paid for purchasing fixed assets, intangible assets and other long-term assets 509,876,116.39 625,426,005.07 Cash paid for investment 1,906,272,802.31 2,118,886,300.00 Ne t cash paid for the acquisition of subsidiaries and other business entities 0.00 0.00 Ot her cash paid relating to investing activities 0.00 21,327,013.60 Su btotal of cash outflows from investing activities 2,416,148,918.70 2,765,639,318.67 Ne t cash flows from investing activities -302,425,257.65 -1,051,156,166.95 CONSOLIDATED CASH FLOW STATEMENT(CONTINUED) January to June 2026 Prepared by: Harbin Electric Company Limited
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– 14 – Item Notes January to June 2026 January to June 2025 III. Ca sh flows from financing activities: – – Ca sh received from absorbing investment 0.00 0.00 Including: Ca sh received by subsidiaries from absorbing investments of minority shareholders 0.00 0.00 Cash received from borrowings 15,823,820.00 618,133,297.00 Ot her cash received relating to financing activities 0.00 5,000,000.00 Su btotal of cash inflows from financing activities 15,823,820.00 623,133,297.00 Cash paid for debt repayment 228,571,000.00 942,827,030.27 Ca sh paid for distributing dividends and profits or paying interests 55,372,007.49 70,711,279.29 Including: Di vidends and profits paid by subsidiaries to minority shareholders 7,697,225.85 17,596,584.27 Ot her cash paid relating to financing activities 4,032,948.55 8,541,547.98 Su btotal of cash outflows from financing activities 287,975,956.04 1,022,079,857.54 Ne t cash flows from financing activities -272,152,136.04 -398,946,560.54 CONSOLIDATED CASH FLOW STATEMENT(CONTINUED) January to June 2026 Prepared by: Harbin Electric Company Limited
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– 15 – Item Notes January to June 2026 January to June 2025 IV. Effects from change of exchange rate on cash and cash equivalents -110,285,542.12 -73,247,226.49 V. Net increase in cash and cash equivalents 5,662,898,311.77 1,668,743,579.33 Add: Be ginning balance of cash and cash equivalents 14,193,537,323.25 15,173,753,371.19 VI. Ending balance of cash and cash equivalents 19,856,435,635.02 16,842,496,950.52 CONSOLIDATED CASH FLOW STATEMENT(CONTINUED) January to June 2026 Prepared by: Harbin Electric Company Limited
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– 16 – CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITYJanuary to June 2026 Prepared by: Harbin Electric Company Limited January to June 2026 Shareholders’ equity attributable to the parent company Non- controlling interests Total shareholders’ equity Item Share capital Other equity instruments Capital reserves Less: Treasury stocks Other comprehensive income Special reserves Surplus reserves General risk reserves Retained earnings Others Subtotal Preferred stock Perpetual bonds Others I. Closing balance of the previous year 2,236,276,000.00 0.00 0.00 0.00 5,491,563,058.67 0.00 58,895,147.51 62,650,692.88 1,033,247,486.89 0.00 8,918,841,633.88 0.00 17,801,474,019.83 674,790,119.18 18,476,264,139.01 Add: Changes in accounting policies 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Corrections of early errors 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Bu siness combination under common control 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 II. Opening balance of the current year 2,236,276,000.00 0.00 0.00 0.00 5,491,563,058.67 0.00 58,895,147.51 62,650,692.88 1,033,247,486.89 0.00 8,918,841,633.88 0.00 17,801,474,019.83 674,790,119.18 18,476,264,139.01 III. In crease or decrease in the current year (decrease to be listed with “-”) 0.00 0.00 0.00 0.00 233,319.35 0.00 -27,362,767.01 13,201,261.98 0.00 0.00 993,255,636.91 0.00 979,327,451.23 -8,193,910.10 971,133,541.13 (I) Total comprehensive income 0.00 0.00 0.00 0.00 0.00 0.00 48,581,566.28 0.00 0.00 0.00 1,717,898,111.62 0.00 1,766,479,677.90 2,035,933.68 1,768,515,611.58 (II) Ca pital invested and decreased by shareholders 0.00 0.00 0.00 0.00 233,319.35 0.00 0.00 0.00 0.00 0.00 0.00 0.00 233,319.35 -3,865,274.97 -3,631,955.62 1. Or dinary shares invested by shareholders 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2. Ca pital invested by holders of other equity instruments 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3. Am ount of share-based payment included in shareholders’ equity 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4. Others 0.00 0.00 0.00 0.00 233,319.35 0.00 0.00 0.00 0.00 0.00 0.00 0.00 233,319.35 -3,865,274.97 -3,631,955.62
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– 17 – January to June 2026 Shareholders’ equity attributable to the parent company Non- controlling interests Total shareholders’ equity Item Share capital Other equity instruments Capital reserves Less: Treasury stocks Other comprehensive income Special reserves Surplus reserves General risk reserves Retained earnings Others Subtotal Preferred stock Perpetual bonds Others (III) Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -800,586,808.00 0.00 -800,586,808.00 -7,697,225.85 -808,284,033.85 1. Ap propriation to surplus reserve 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2. Ap propriation to general risk reserve 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3. Di stribution to shareholders 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -800,586,808.00 0.00 -800,586,808.00 -7,697,225.85 -808,284,033.85 4. Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (IV) In ternal carry-over in shareholders’ equity 0.00 0.00 0.00 0.00 0.00 0.00 -75,944,333.29 0.00 0.00 0.00 75,944,333.29 0.00 0.00 0.00 0.00 1. Ca pital reserve transferred to share capital 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2. Su rplus reserve transferred to share capital 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3. Su rplus reserve to recover losses 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4. Re tained earnings carried forward from changes in defined benefit plan 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5. Re tained earnings carried forward from other comprehensive income 0.00 0.00 0.00 0.00 0.00 0.00 -75,944,333.29 0.00 0.00 0.00 75,944,333.29 0.00 0.00 0.00 0.00 6. Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY (CONTINUED)January to June 2026 Prepared by: Harbin Electric Company Limited
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– 18 – January to June 2026 Shareholders’ equity attributable to the parent company Non- controlling interests Total shareholders’ equity Item Share capital Other equity instruments Capital reserves Less: Treasury stocks Other comprehensive income Special reserves Surplus reserves General risk reserves Retained earnings Others Subtotal Preferred stock Perpetual bonds Others (V) Ap propriation to and use of special reserves 0.00 0.00 0.00 0.00 0.00 0.00 0.00 13,201,261.98 0.00 0.00 0.00 0.00 13,201,261.98 1,332,657.04 14,533,919.02 1. Ap propriation in current year 0.00 0.00 0.00 0.00 0.00 0.00 0.00 20,561,676.14 0.00 0.00 0.00 0.00 20,561,676.14 1,685,273.45 22,246,949.59 2. Use in current year 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -7,360,414.16 0.00 0.00 0.00 0.00 -7,360,414.16 -352,616.41 -7,713,030.57 (VI) Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 IV. Closing balance of the current year 2,236,276,000.00 0.00 0.00 0.00 5,491,796,378.02 0.00 31,532,380.50 75,851,954.86 1,033,247,486.89 0.00 9,912,097,270.79 0.00 18,780,801,471.06 666,596,209.08 19,447,397,680.14 CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY (CONTINUED)January to June 2026 Prepared by: Harbin Electric Company Limited
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– 19 – January to June 2025 Shareholders’ equity attributable to the parent company Non- controlling interests Total shareholders’ equity Item Share capital Other equity instruments Capital reserves Less: Treasury stocks Other comprehensive income Special reserves Surplus reserves General risk reserves Retained earnings Others Subtotal Preferred stock Perpetual bonds Others I. Closing balance of the previous year 2,236,276,000.00 0.00 0.00 0.00 5,491,563,058.67 0.00 -102,281,657.96 60,940,261.82 973,010,437.91 0.00 6,823,254,033.56 0.00 15,482,762,134.00 707,099,094.72 16,189,861,228.72 Add: Changes in accounting policies 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Corrections of early errors 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Bu siness combination under common control 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 II. Opening balance of the current year 2,236,276,000.00 0.00 0.00 0.00 5,491,563,058.67 0.00 -102,281,657.96 60,940,261.82 973,010,437.91 0.00 6,823,254,033.56 0.00 15,482,762,134.00 707,099,094.72 16,189,861,228.72 III. In crease or decrease in the current year (decrease to be listed with “-”) 0.00 0.00 0.00 0.00 0.00 0.00 84,759,632.66 14,279,184.27 0.00 0.00 540,903,813.42 0.00 639,942,630.35 -8,255,492.56 631,687,137.79 (I) Total comprehensive income 0.00 0.00 0.00 0.00 0.00 0.00 82,407,042.92 0.00 0.00 0.00 1,050,891,055.16 0.00 1,133,298,098.08 8,307,023.26 1,141,605,121.34 (II) Ca pital invested and decreased by shareholders 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1. Or dinary shares invested by shareholders 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2. Ca pital invested by holders of other equity instruments 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3. Am ount of share-based payment included in shareholders’ equity 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4. Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY (CONTINUED)January to June 2026 Prepared by: Harbin Electric Company Limited
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– 20 – January to June 2025 Shareholders’ equity attributable to the parent company Non- controlling interests Total shareholders’ equity Item Share capital Other equity instruments Capital reserves Less: Treasury stocks Other comprehensive income Special reserves Surplus reserves General risk reserves Retained earnings Others Subtotal Preferred stock Perpetual bonds Others (III) Profit distribution 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -507,634,652.00 0.00 -507,634,652.00 -17,596,584.27 -525,231,236.27 1. Ap propriation to surplus reserve 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2. Ap propriation to general risk reserve 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3. Di stribution to shareholders 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -507,634,652.00 0.00 -507,634,652.00 -17,596,584.27 -525,231,236.27 4. Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (IV) In ternal carry-over in shareholders’ equity 0.00 0.00 0.00 0.00 0.00 0.00 2,352,589.74 0.00 0.00 0.00 -2,352,589.74 0.00 0.00 0.00 0.00 1. Ca pital reserve transferred to share capital 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2. Su rplus reserve transferred to share capital 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3. Su rplus reserve to recover losses 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4. Re tained earnings carried forward from changes in defined benefit plan 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5. Re tained earnings carried forward from other comprehensive income 0.00 0.00 0.00 0.00 0.00 0.00 2,352,589.74 0.00 0.00 0.00 -2,352,589.74 0.00 0.00 0.00 0.00 6. Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY (CONTINUED)January to June 2026 Prepared by: Harbin Electric Company Limited
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– 21 – January to June 2025 Shareholders’ equity attributable to the parent company Non- controlling interests Total shareholders’ equity Item Share capital Other equity instruments Capital reserves Less: Treasury stocks Other comprehensive income Special reserves Surplus reserves General risk reserves Retained earnings Others Subtotal Preferred stock Perpetual bonds Others (V) Ap propriation to and use of special reserves 0.00 0.00 0.00 0.00 0.00 0.00 0.00 14,279,184.27 0.00 0.00 0.00 0.00 14,279,184.27 1,034,068.45 15,313,252.72 1. Ap propriation in current year 0.00 0.00 0.00 0.00 0.00 0.00 0.00 19,847,696.21 0.00 0.00 0.00 0.00 19,847,696.21 1,408,737.96 21,256,434.17 2. Use in current year 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -5,568,511.94 0.00 0.00 0.00 0.00 -5,568,511.94 -374,669.51 -5,943,181.45 (VI) Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 IV. Closing balance of the current year 2,236,276,000.00 0.00 0.00 0.00 5,491,563,058.67 0.00 -17,522,025.30 75,219,446.09 973,010,437.91 0.00 7,364,157,846.98 0.00 16,122,704,764.35 698,843,602.16 16,821,548,366.51 CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY (CONTINUED)January to June 2026 Prepared by: Harbin Electric Company Limited
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– 22 – HARBIN ELECTRIC COMPANY LIMITED CONSOLIDATED FINANCIAL SUMMARY I. COMPANY PROFILE Harbin Electric Company Limited (hereinafter referred to as “the Company”) was formed through the restructuring of the former state-owned enterprise Harbin Electric Corporation (hereinafter referred to as “HE”) and its affiliated companies former Harbin Electric Machinery Works, Harbin Boiler Works, and Harbin Turbine Works. The Company was registered and established in Harbin on October 6, 1994, and was approved for restructuring into a joint stock company listed in Hong Kong by the former State Commission for Restructuring the Economic System on November 5, 1994. The parent company and ultimate controlling party of the Company is Harbin Electric Corporation. The Company operates within the generator and generating set manufacturing industry, specializing in the production and sales of power generation equipment and general contracting of power station projects. II. BASIS OF PREPARATION FOR FINANCIAL STATEMENTS The Financial Statements of the Group are prepared on a going concern basis, as per the actually incurred transaction and events, the Accounting Standards for Business Enterprises issued by the Ministry of Finance and its application guidelines, interpretations and other relevant provisions thereof (hereinafter collectively referred to as “ASBEs”), Preparation Rules for Information Disclosures by Companies Offering Shares to the Public No. 15 – General Provisions on Financial Reports (revised in 2023) issued by China Securities Regulatory Commission (CSRC) and relevant regulations, and disclosure requirements in Hong Kong Companies Ordinance and Listing Rules/GEM Listing Rules of the Stock Exchange of Hong Kong, and based on the accounting policies and accounting estimates in the “Note IV. Significant Accounting Policies and Accounting Estimates”. III. STATEMENT OF COMPLIANCE WITH ASBE The financial statements prepared by the Company conform to the requirements of the ASBE, and truly and completely reflect the relevant information such as the financial position, the operating results and the cash flows of the Company and the Group. Given the equivalence between the Accounting Standards for Business Enterprises of the Chinese Mainland and the Hong Kong Financial Reporting Standards, SFC and the Stock Exchange have accepted financial reports prepared under the Accounting Standards for Business Enterprises of the Chinese Mainland by Chinese Mainland-based companies listed in Hong Kong and audited by Chinese Mainland-qualified accounting firms.
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– 23 – IV. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES 1. Accounting period An accounting year of the Company lasts from January 1 to December 31 (Gregorian calendar). 2. Bookkeeping currency Except for Harbin Electric International (Hong Kong) Holdings Company Limited and Hassyan International Investment Limited, subsidiaries of the Company, which use the US Dollar (USD) as their bookkeeping currency, the Company and its other subsidiaries use Renminbi (RMB) as their bookkeeping currency. 3. The Group uses RMB to prepare the financial statements. 4. Accounting method for business combination under and not under common control (1) Where the terms, conditions, and economic effects of multiple transactions in the process of step-by-step realization of business combination meet one or more of the following conditions, these transactions shall be treated as a package transaction for accounting: 1) These transactions are concluded simultaneously or by taking the mutual impact into account; 2) These transactions as a whole can reach a complete business result; 3) The occurrence of one transaction depends on the occurrence of at least one other transaction; 4) One transaction alone is not economical, but it is when considered with other transactions. (2) Business combination under common control The assets and liabilities of the Company obtained from the business combination are measured according to the carrying amount of the assets and liabilities (including goodwill resulting from the acquisition of the combined party by the ultimate controlling party) of the combined party in the ultimate controlling party’s Consolidated Financial Statements at the date of combination. The difference between the carrying amount of net assets obtained from the combination and that of the consideration paid for the combination (or the total par value of the shares issued) shall be adjusted to the equity premium in capital reserve, or adjusted to retained earnings if the equity premium in capital reserve is insufficient to offset.
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– 24 – If there is contingent consideration which is classified as estimated asset or liability, representing the difference between the amount of assets or liabilities and the amount of the contingent consideration paid subsequently, is adjusted to the capital reserves (capital premium or share capital premium). If the capital premium or share capital premium of the capital reserves is not sufficient, the remaining balance is adjusted to the retained earnings. In case multiple transactions for the business combination are considered as a package transaction, these transactions shall be regarded as a transaction for the acquisition of control for accounting treatment; if they are not considered as a package transaction, the difference between the initial investment cost of long-term equity investment at the date when the control is acquired and the sum of carrying amount of the long-term equity investment before the combination and the carrying amount of the consideration paid at the combination date for further acquisition of shares shall be used to adjust capital surplus; if the capital surplus is insufficient for offset, the retained earnings shall be adjusted. The equity investment held prior to the combination date and recognized as other comprehensive income due to calculation by equity method or calculation as per recognition and measurement criteria of financial instruments will not be subject to accounting treatment temporarily and will be subject to accounting treatment on the same basis as that adopted by the investee for direct disposal of related assets or liabilities at the time of disposal. If it is recognized as other changes in owner’s equity (excluding net profit/loss, other comprehensive income and profit distribution) in the net assets of the investee due to calculation by equity method, it will not be subject to accounting treatment temporarily and will be transferred to current profits and losses at the time of disposal. (3) Business combination not under common control The date of acquisition is the date on which the Company actually acquires control over the acquiree, i.e., the date on which control over the acquiree’s net assets or production and operating decisions is transferred to the Company. The Company generally considers a transfer of control to have been achieved when the following conditions are met: 1) The business combination contract or agreement has been approved by the internal authority of the Company. 2) The matter of business combination subject to the approval of the relevant state authorities has been approved. 3) The necessary procedures for transferring property rights have been completed. 4) The Company has paid the majority of the combination price and has the ability and plan to pay the remaining amount. 5) The Company has actually controlled the financial and operation policies of the acquiree, shares the corresponding earnings, and takes corresponding risks.
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– 25 – The assets given, and the liabilities incurred or assumed by the Company as business combination consideration on the acquisition date are measured at fair value. The difference between the fair value and the carrying amount is recorded in the profit or loss for the current period. The Company recognizes any excess of the combination cost over the fair value of the net identifiable assets acquired from the acquiree in combination as goodwill; upon reassessment, any deficiency of the combination cost below the fair value of the net identifiable assets acquired from the acquiree in combination is recognized in current profits and losses. (4) Costs incurred for combination Intermediary fees for such items as auditing, legal services, appraisal and consulting, and other directly related costs incurred for the business combination are charged to current profit or loss as incurred; transaction costs for equity securities issued for the business combination are deducted from equity if they are directly attributable to the equity transaction. 5. Segment information The Company has structured its main businesses into three operational systems–a new-type power system centered on new energy, a clean and efficient industrial system, and a green, low-carbon drive system–based on its internal organizational structure, management requirements, and internal reporting system. At the same time, the finance company and other non-main businesses are treated as a separate business segment. Each reportable segment of the Company provides distinct products or services, or operates in different geographical regions. As each segment requires unique technologies or market strategies, the Company’s management individually oversees the operating activities of each reportable segment and periodically evaluates their operating results to determine resource allocation and assess their performance. Inter-segment transfer prices are determined based on actual transaction prices. Indirect expenses attributable to segments are allocated proportionally according to revenue. Assets are allocated based on segment operations and physical location, while segment liabilities include liabilities attributable to the segment’s operating activities. Where liabilities are jointly incurred by multiple operating segments, such shared liabilities are allocated to these segments in proportion to the expenses borne by each. 6. Changes in accounting policies (1) Changes in accounting policies There are no changes in accounting policies in the reporting period. (2) Changes in accounting estimates There are no changes in accounting estimates in the reporting period.
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– 26 – V. MAIN ITEMS OF CONSOLIDATED FINANCIAL STATEMENTS Note 1. Revenue and segment information (1) Determination basis and accounting policy of reportable segments The Company has structured its main businesses into three operational systems– a new-type power system centered on new energy, a clean and efficient industrial system, and a green, low-carbon drive system–based on its internal organizational structure, management requirements, and internal reporting system. At the same time, the finance company and other non-main businesses are treated as a separate business segment. Each reportable segment of the Company provides distinct products or services, or operates in different geographical regions. As each segment requires unique technologies or market strategies, the Company’s management individually oversees the operating activities of each reportable segment and periodically evaluates their operating results to determine resource allocation and assess their performance. Inter-segment transfer prices are determined based on actual transaction prices. Indirect expenses attributable to segments are allocated proportionally according to revenue. Assets are allocated based on segment operations and physical location, while segment liabilities include liabilities attributable to the segment’s operating activities. Where liabilities are jointly incurred by multiple operating segments, such shared liabilities are allocated to these segments in proportion to the expenses borne by each. (2) Financial information of reportable segments 1) Segment financial information from January to June 2026 Item New-type power system centered on new energy Green, low-carbon drive system Clean and efficient industrial system Other businesses Offset Total I. Operating revenue 17,216,100,641.08 277,017,857.30 2,664,346,936.68 6,371,975,028.93 -1,532,617,389.85 24,996,823,074.14 Including: ex ternal transaction revenue 15,940,555,737.05 277,017,857.30 2,620,672,112.51 6,158,577,367.28 0.00 24,996,823,074.14 Intra-segment transaction revenue 1,275,544,904.03 0.00 43,674,824.17 213,397,661.65 -1,532,617,389.85 0.00 II. Investment income from the joint ventures and associates 38,167,092.99 614,132.46 5,906,702.07 14,126,297.73 0.00 58,814,225.25 III. Asset impairment losses 5,662,997.10 91,121.18 876,399.91 2,095,972.64 0.00 8,726,490.83 IV. Credit impairment losses -138,927,578.68 -2,235,431.88 -21,500,296.52 -51,419,486.94 -17,000,000.00 -231,082,794.02 V. Depreciation and amortization expenses 342,296,611.82 5,507,767.17 52,973,489.65 126,689,864.83 834,590.25 528,302,323.72 VI. Total profit 2,218,006,254.59 35,689,111.78 343,256,483.75 820,922,272.87 -1,361,176,736.83 2,056,697,386.16 VII. Income tax expenses 217,242,031.65 3,495,560.54 33,620,164.84 80,405,013.30 0.00 334,762,770.33 VIII. Net profit 2,000,764,222.94 32,193,551.23 309,636,318.91 740,517,259.58 -1,361,176,736.83 1,721,934,615.83 IX. Total assets 82,224,112,106.54 1,323,037,534.98 12,724,923,359.80 30,432,558,454.53 -39,769,696,442.93 86,934,935,012.92 X. Total liabilities 62,381,066,341.80 1,003,750,483.01 9,654,032,959.01 23,088,305,842.00 -28,639,618,293.04 67,487,537,332.78
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– 27 – 2) Segment financial information from January to June 2025 Item New-type power system centered on new energy Green, low-carbon drive system Clean and efficient industrial system Other businesses Offset Total I. Operating revenue 15,900,846,674.42 170,756,824.91 2,287,264,536.10 6,099,171,846.57 -1,761,935,703.53 22,696,104,178.47 Including: external transaction revenue 14,463,181,536.87 170,756,824.91 2,259,322,812.47 5,802,843,004.22 0.00 22,696,104,178.47 Intra-segment transaction revenue 1,437,665,137.55 0.00 27,941,723.63 296,328,842.35 -1,761,935,703.53 0.00 II. Investment income from the joint ventures and associates 28,025,566.20 300,962.38 4,031,350.34 10,749,914.64 0.00 43,107,793.56 III. Asset impairment losses -60,640,522.76 -651,209.55 -8,722,863.63 -23,260,206.00 0.00 -93,274,801.94 IV. Credit impairment losses -124,969,605.94 -1,342,029.99 -17,976,309.92 -47,935,252.62 -4,262,500.00 -196,485,698.47 V. Depreciation and amortization expenses 251,164,329.21 2,697,216.33 36,128,847.39 96,340,429.99 -686,187.73 385,644,635.19 VI. Total profit 1,240,244,362.06 13,318,799.54 178,403,515.46 475,727,088.68 -680,258,050.28 1,227,435,715.46 VII. Income tax expenses 111,238,839.50 1,194,577.33 16,001,201.56 42,668,469.93 0.00 171,103,088.32 VIII. Net profit 1,129,005,522.56 12,124,222.21 162,402,313.90 433,058,618.75 -680,258,050.28 1,056,332,627.14 IX. Total assets 79,265,508,636.10 851,220,495.15 11,401,983,212.06 30,404,290,323.43 -41,512,969,677.32 80,410,032,989.42 X. Total liabilities 61,110,911,410.96 656,260,978.65 8,790,526,900.93 23,440,635,459.72 -30,409,850,127.35 63,588,484,622.91 Note 2. Administrative expenses Item Amount in the current period Amount in the previous period Employee salary 386,241,114.48 381,714,576.48 Repair expenses 151,169,364.98 64,413,040.40 Depreciation and amortization expenses 116,332,784.86 109,964,713.77 Business travel expense 41,424,100.74 29,963,632.70 Labor service outsourcing expenses 25,040,722.25 23,170,180.09 Transportation expenses 10,699,992.84 13,083,758.64 Intermediary agency fee 10,210,293.78 7,284,523.03 Utility bills 9,026,875.29 8,533,346.85 Office expenses 8,426,348.72 10,434,695.56 Test and inspection expenses 8,169,483.55 5,277,274.23 Property management fees 7,896,579.09 7,536,088.64 Consulting service fee 7,788,345.85 14,308,604.45 Working funds for Party building 4,737,196.70 10,445,274.62 Advertising expenses 3,769,009.81 2,960,219.58 Rental expenses 3,155,398.72 6,991,745.86 Labor protection expenses 2,754,909.93 3,787,490.62 Business entertainment expenses 2,662,564.19 5,048,486.52 Others 62,374,784.58 53,468,212.28 Total 861,879,870.36 758,385,864.32
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– 28 – Note 3. Credit impairment loss Item Amount in the current period Amount in the previous period Bad debt loss -229,131,297.84 -164,647,350.97 Impairment loss of other debt investments -4,451,496.18 -31,838,347.50 Other impairment losses 2,500,000.00 0.00 Total -231,082,794.02 -196,485,698.47 Note 4. Asset impairment loss Item Amount in the current period Amount in the previous period Inventory impairment loss 10,914,594.29 -30,870,653.12 Impairment loss of contract assets -1,708,548.30 -62,094,275.36 Impairment loss of fixed assets -479,555.16 -309,873.46 Total 8,726,490.83 -93,274,801.94 Note 5. Dividends The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2026. The dividend per share in 2025 was RMB0.358. Note 6. Earnings per share Item Amount in the current period Amount in the previous period Net profit attributable to common shareholders of the parent company 1,717,898,111.62 1,050,891,055.16 Weighted-average number of ordinary shares issued during the period 2,236,276,000.00 2,236,276,000.00 Earnings per share 0.77 0.47 Diluted earnings per share 0.77 0.47
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– 29 – Note 7. Income tax (1) Enterprise income tax According to the relevant provisions of the Enterprise Income Tax Law, the enterprise income tax rate is reduced to 15% for new high-tech enterprises requiring major support from the State. On October 16, 2023, the Company obtained the High-tech Enterprise Certificate (Certificate No.: GR202323000783) jointly issued by the Department of Science and Technology of Heilongjiang Province, Finance Bureau of Heilongjiang Province, and Heilongjiang Provincial Tax Service, State Taxation Administration. The certificate is valid for three years, during which the Company is subject to a 15% enterprise income tax rate. Except for certain subsidiaries entitled to a 15% enterprise income tax rate (for the six months ended June 30, 2026: 15%), other subsidiaries in China are subject to the statutory enterprise income tax rate of 25% (for the six months ended June 30, 2026: 25%). (2) Hong Kong profits tax The Company did not derive any assessable income liable to Hong Kong profits tax during January to June 2026. Consequently, no provision was recognized for Hong Kong profits tax. (3) Withholding income tax Pursuant to the Notice on the Issues Concerning Withholding the EIT on the Dividends Paid by Chinese Resident Enterprises to H Share Holders Which Are Overseas Non-resident Enterprises (GSH [2008] No. 897) issued by the State Taxation Administration on November 6, 2008, Chinese resident enterprises paying dividends for 2008 and onwards to overseas non-resident enterprise shareholders of H-shares must withhold enterprise income tax at 10%. Accordingly, the Company withholds enterprise income tax at 10% when paying dividends for 2008 and onwards to overseas non-resident enterprise shareholders of H-shares.
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– 30 – Note 8. Accounts receivable 1. Accounts receivable presented by ageing Ageing Ending book value Beginning book value Within 1 year (including 1 year) 4,613,980,187.21 4,530,416,926.70 1-2 years 1,902,307,457.62 1,372,137,203.96 2-3 years 636,128,329.85 890,130,956.15 Over 3 years 2,892,365,650.83 2,523,325,930.98 Subtotal 10,044,781,625.51 9,316,011,017.79 Less: provision for bad debts 3,791,813,297.66 3,556,790,349.19 Total 6,252,968,327.85 5,759,220,668.60 2. Classified presentation of accounts receivable according to bad debt accrual method Category Ending balance Book value Provision for bad debts Carrying amountAmount Proportion Amount Provision proportion (%) (%) Provision for bad debts on a single basis 1,071,700,096.72 10.67 948,757,357.26 88.53 122,942,739.46 Provision for bad debts on a portfolio basis 8,973,081,528.79 89.33 2,843,055,940.40 – 6,130,025,588.39 Including: Ageing portfolio 8,966,778,775.02 89.27 2,843,055,940.40 31.71 6,123,722,834.62 Portfolio of related parties 6,302,753.77 0.06 0.00 0.00 6,302,753.77 Total 10,044,781,625.51 100.00 3,791,813,297.66 – 6,252,968,327.85 Category Beginning balance Book value Provision for bad debts Carrying amountAmount Proportion Amount Provision proportion (%) (%) Provision for bad debts on a single basis 1,199,063,221.29 12.87 990,012,752.01 82.57 209,050,469.28 Provision for bad debts on a portfolio basis 8,116,947,796.50 87.13 2,566,777,597.18 – 5,550,170,199.32 Including: Ageing portfolio 8,109,496,025.61 87.05 2,566,777,597.18 31.65 5,542,718,428.43 Portfolio of related parties 7,451,770.89 0.08 0.00 0.00 7,451,770.89 Total 9,316,011,017.79 100.00 3,556,790,349.19 – 5,759,220,668.60
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– 31 – (1) Provision for bad debt made individually for accounts receivable Description Ending balance Book value Provision for bad debts Provision proportion Reasons for provision (%) Ministry of Water Resources and Irrigation of the Republic of Sudan 269,302,351.16 269,302,351.16 100.00 Expected to be irrecoverable Coastal Energy Private Limited 130,174,146.90 130,174,146.90 100.00 Expected to be irrecoverable Kolin, owner of the Türkiye Soma Project 85,034,070.02 85,034,070.02 100.00 Expected to be irrecoverable Dehui Ruilong Biomass Power Generation Co., Ltd. 76,537,715.03 44,215,120.92 57.77 Expected to be recoverable Fuyuan Ruilong Biomass Power Generation Co., Ltd. 56,745,986.84 28,499,410.74 50.22 Expected to be recoverable Jiangsu Delong Nickel Industry Co., Ltd. 53,280,000.00 53,280,000.00 100.00 Expected to be irrecoverable National Electricity Corporation of Sudan 53,123,862.42 53,123,862.42 100.00 Expected to be irrecoverable Wangkui Ruilong Biomass Power Generation Co., Ltd. 52,058,540.07 17,883,001.84 34.35 Expected to be recoverable China Energy Engineering Group Tianjin Electric Power Construction Co., Ltd. 49,000,000.00 39,200,000.00 80.00 Expected to be recoverable Ministry of Electricity and Dams of Sudan 37,815,812.92 37,815,812.92 100.00 Expected to be irrecoverable Ordos Green Energy Photoelectric Co., Ltd. 37,582,892.87 37,582,892.87 100.00 Expected to be irrecoverable Ningxia Changyi Clean Energy Co., Ltd. 25,748,000.00 25,748,000.00 100.00 Expected to be irrecoverable Sinosplendor Engineering & Technology Co., Ltd. 21,880,000.00 21,880,000.00 100.00 Expected to be irrecoverable Datang Environment Industry Group Co., Ltd. Leizhou Project Branch 21,507,908.73 21,507,908.73 100.00 Expected to be irrecoverable Beijing Haoshenghe Biotechnology Co., Ltd. 17,236,278.00 17,236,278.00 100.00 Expected to be irrecoverable Sudanese Thermal Power Generation Company, Ministry of Dams 15,507,316.62 15,507,316.62 100.00 Expected to be irrecoverable Others 69,165,215.14 50,767,184.12 – – Total 1,071,700,096.72 948,757,357.26 – –
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– 32 – (2) Provision for bad debts of accounts receivable accrued as per portfolio – ageing portfolio Ageing Ending balance Book value Provision for bad debtsAmount Proportion (%) Within 1 year (including 1 year) 4,580,189,443.91 51.08 216,492,176.06 1-2 years 1,675,970,781.10 18.69 418,992,695.31 2-3 years 620,918,808.23 6.92 310,459,404.40 Over 3 years 2,089,699,741.78 23.31 1,897,111,664.63 Total 8,966,778,775.02 100.00 2,843,055,940.40 (Cont’d) Ageing Beginning balance Book value Provision for bad debtsAmount Proportion (%) Within 1 year (including 1 year) 4,213,563,319.88 51.96 208,991,833.60 1-2 years 1,321,785,758.89 16.30 330,446,440.05 2-3 years 796,765,938.59 9.83 398,382,969.40 Over 3 years 1,777,381,008.25 21.91 1,628,956,354.13 Total 8,109,496,025.61 100.00 2,566,777,597.18 3. Movement of bad debt provision made, recovered, or reversed for accounts receivable in the current period Category Beginning balance Change of amount in the current period Ending balanceAccrual Recovery or reversal Charge or write-off Others Provision for bad debts 3,556,790,349.19 251,470,411.70 16,471,242.26 0.00 23,779.03 3,791,813,297.66 Significant recovery or reversal of bad debt provision for the current period: Company name Amount Reason for reversal Method Basis and rationality for determining the proportion of original provision for bad debts Beijing Haoshenghe Biotechnology Co., Ltd. 12,124,640.60 Recovery Recovery Collection difficulties
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– 33 – 4. Accounts receivable actually written off this period No accounts receivable are actually written off in the current period. 5. Accounts receivable and contract assets with top five ending balances collected as per the borrowers Company name Ending balance of accounts receivable Ending balance of contract assets Ending balance of accounts receivable and contract assets Proportion in total ending balance of accounts receivable and contract assets Ending balance of the provision for bad debts for accounts receivable and contract assets The 703rd Research Institute of China State Shipbuilding Corporation Limited 329,324,892.16 175,781,291.60 505,106,183.76 2.28 95,274,982.30 CHINERGY Co., Ltd. 226,355,903.78 247,227,356.76 473,583,260.54 2.14 11,317,795.18 China National Water Resources & Electric Power Materials & Equipment Group Co., Ltd. 145,027,730.59 303,945,875.86 448,973,606.45 2.03 16,733,536.54 China Nuclear Power Engineering Co., Ltd. (CGN) 27,299,710.01 406,756,116.24 434,055,826.25 1.96 1,451,041.61 Hassyan Coal-fired Power Plant Project Company 0.00 517,289,419.02 517,289,419.02 2.34 252,276,925.32 Total 728,008,236.54 1,651,000,059.48 2,379,008,296.02 10.75 377,054,280.95 Note 9. Accounts payable Item Ending balance Beginning balance Within 1 year (including 1 year) 14,093,283,290.29 10,290,219,613.15 1-2 years 2,106,277,714.43 1,759,535,046.65 2-3 years 913,803,674.63 627,614,853.29 Over 3 years 1,557,645,236.67 1,221,730,257.02 Total 18,671,009,916.02 13,899,099,770.11
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– 34 – INDUSTRY DEVELOPMENT AND BUSINESS REVIEW In the first half of 2026, China adhered to the general working principle of pursuing progress while ensuring stability, fully, accurately and comprehensively applied the new development philosophy, accelerated the fostering of a new development pattern, strived to promote high-quality development, and implemented more proactive and effective macro policies. The economy withstood pressures and operated within a reasonable range, showing a development trend featured by new driving forces and improved structure. From the perspective of the power industry, China’s power consumption was characterised by growing total volume, improved structure and new driving forces. China’s power system operated safely and stably, the power supply structure underwent continuous green and low-carbon transformation, and power supply and demand remained generally balanced. China’s newly installed power generation capacity reached 159 million kilowatts, of which thermal power was 38.36 million kilowatts, hydropower was 6.03 million kilowatts, nuclear power was 3.62 million kilowatts, grid-connected wind power was 38.62 million kilowatts, and grid-connected solar power was 72.07 million kilowatts. As of 30 June 2026, the total installed capacity of power generation on a consolidated basis in China stood at 4.043 billion kilowatts, of which thermal power was 1.569 billion kilowatts, conventional hydropower was 385 million kilowatts, and pumped-storage hydropower was 69 million kilowatts, nuclear power was 66 million kilowatts, grid-connected wind power was 679 million kilowatts, and grid-connected solar power was 1.274 billion kilowatts. In the first half of 2026, the Company deeply studied and implemented the important speeches and important instructions of General Secretary Xi Jinping and the decisions and deployments of the Central Committee of the Communist Party of China, remained unwaveringly anchored on its full-year targets, strengthened confidence, forged ahead with resolve, fulfilled its responsibilities, maintained a development momentum of steady progress, and achieved steady improvement in operational quality and efficiency. OPERATING RESULTS In the first half of 2026, the Company recorded an operating revenue of RMB24,799.16 million, representing an increase of 10.35% as compared with the same period last year. The Company recorded a net profit attributable to owners of the parent company of RMB1,717.90 million, representing an increase of 63.47% as compared with the same period last year. Earnings per share were RMB0.77, representing an increase of RMB0.30 as compared with the same period last year. The Company’s total equity attributable to the owners of the parent company at the end of the period was RMB18,780.80 million, representing an increase of RMB979.33 million over the beginning of the year; and net assets per share were RMB8.40, representing an increase of RMB0.44 over the beginning of the year.
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– 35 – NEW CONTRACTS In the first half of 2026, the amount of formal contracts signed of the Company realized RMB36.040 billion, representing a year-on-year increase of 1.35%, of which new-type power equipment amounted to RMB27.102 billion, representing a year-on-year increase of 41.19% (including RMB16.014 billion and a year-on-year increase of 41.89% for coal power equipment, RMB6.312 billion and a year-on-year increase of 5.27% for hydropower equipment, RMB2.686 billion and a year-on-year increase of 209.80% for nuclear power equipment); green and low carbon driven equipment amounted to RMB247 million, representing a year-on-year decrease of 34.31%; clean and efficient industrial system amounted to RMB2.066 billion, representing a year-on-year increase of 15.29%; EPC and trading amounted to RMB2.964 billion, representing a year-on-year decrease of 71.73%; and modern manufacturing and service industry amounted to RMB3.661 billion, representing a year-on-year decrease of 1.40%. In the first half of 2026, the value of export contracts by the Company amounted to RMB4.862 billion, representing a year-on-year decrease of 59.05%. The main reason for the significant year-on-year increase in the amount of formal contracts signed for coal power and nuclear power equipment is that the previously awarded and signed projects have taken effect and been executed; the reason for the significant year-on-year decrease in the amount of formal contracts signed for EPC and trading and export orders is that the Company’s large-scale EPC projects in Saudi Arabia took effect and were executed in the same period of last year, while no new large-scale EPC projects of similar scale have taken effect and been executed in the corresponding period of the current year. PRODUCT OUTPUT The capacity of the Company’s power equipment produced in the first half of 2026 was 25,430 MW, representing an increase of 26.38% as compared with the same period last year, and among which water turbine generators sets generated a total of 8,060 MW, representing an increase of 73.72% as compared with the same period last year; steam turbine generators generated a total of 17,370 MW, representing an increase of 12.19% as compared with the same period last year; utility boilers for power stations generated a total of 9,270 MW, representing an increase of 611.87% as compared with the same period last year, and steam turbines for power stations generated a total of 15,400 MW, representing an increase of 62.24% as compared with the same period last year.
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– 36 – OPERATING REVENUE AND COST In the first half of 2026, the Company recorded an operating revenue of RMB24,799.16 million, representing a year-on-year increase of 10.35% as compared with the same period last year. In particular, new-type power equipment was RMB15,940.56 million, representing a year-on-year increase of 10.21% (including RMB10,297.03 million and a year-on-year increase of 8.31% for coal power industry, RMB2,382.91 million and a year-on-year increase of 42.22% for hydropower industry, RMB1,970.37 million and a year-on-year decrease of 22.93% for nuclear power industry); green and low carbon driven equipment was RMB277.02 million, representing a year-on-year increase of 62.23%; clean and efficient industrial system was RMB2,620.67 million, representing a year-on-year increase of 15.99%; EPC and trading was RMB4,717.15 million, representing a year-on-year increase of 38.53%; and modern manufacturing and service industry was RMB1,077.12 million, representing a year-on-year decrease of 46.00%. The Company recorded an export turnover of RMB4,181.03 million, accounting for 16.86% of the operating revenue. The exports were mainly concentrated on Saudi Arabia and Pakistan, accounting for 14.96% of the operating revenue and 88.71% of the export turnover. The operating cost of the Company was RMB 21,079.85 million, representing an increase of 6.65% as compared with the same period last year, and the growth rate of operating cost was lower than that of operating revenue. GROSS PROFIT AND GROSS PROFIT MARGIN In the first half of 2026, the Company realized a gross profit from operating business of RMB3,719.31 million, representing an increase of 37.35% as compared with the same period last year. The gross profit margin was 15.00%, representing an increase of 2.95 percentage points as compared with the same period last year. In particular, the gross profit from new type power equipment was RMB2,887.36 million and the gross profit margin was 18.11%, representing a year on year increase of 1.27 percentage points (including RMB2,100.90 million, 20.40% and a year-on-year increase of 2.75 percentage points for coal power equipment, RMB391.48 million, 16.43% and a year-on-year increase of 2.60 percentage points for hydropower equipment, RMB273.59 million, 13.89% and a year-on-year decrease of 2.78 percentage points for nuclear power equipment); the gross profit from green and low carbon driven equipment was RMB41.19 million and the gross profit margin was 14.87%, representing a year-on-year increase of 8.18 percentage points; the gross profit from clean and efficient industrial system was RMB126.01 million and the gross profit margin was 4.81%, representing a year-on-year decrease of 0.53 percentage points; the gross profit from EPC and trading was RMB365.84 million and the gross profit margin was 7.76%, representing a year-on-year increase of 16.95 percentage points; the gross profit from modern manufacturing and service industry was RMB225.35 million and the gross profit margin was 20.92%, representing a year-on-year decrease of 1.12 percentage points.
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– 37 – The slight increase in the Company’s gross profit margin was mainly due to the improvement in profitability as compared with the same period last year as a result of the fact that the Company further improved quality and efficiency and strengthened cost control. EXPENSES FOR THE PERIOD In the first half of 2026, the Company incurred expenses for the current period of RMB1,746.13 million, representing an increase of RMB170.86 million as compared with the same period last year. In particular, distribution expenses incurred amounted to RMB281.45 million, representing an increase of RMB42.48 million as compared with the same period last year; administrative expenses incurred amounted to RMB861.88 million, representing an increase of RMB103.49 million as compared with the same period last year; R&D expenses incurred amounted to RMB460.57 million, representing an increase of RMB28.51 million as compared with the same period last year; financial costs incurred amounted to RMB142.23 million, representing a decrease of RMB3.62 million as compared with the same period last year. ASSETS AND LIABILITIES As at 30 June 2026, the total assets of the Company amounted to RMB86,934.94 million, representing an increase of RMB8,272.14 million or 10.52% over the beginning of the period, among which the current assets were RMB73,521.42 million, accounting for 84.57% of the total assets, and the non-current assets were RMB13,413.52 million, accounting for 15.43% of the total assets. The total liabilities of the Company amounted to RMB67,487.54 million, representing an increase of RMB7,301.01 million or 12.13% over the beginning of the period, which was mainly due to the growth in business scale resulting in the increase in accounts payable and contract liabilities (advances from customers), among which the current liabilities were RMB64,920.49 million, accounting for 96.20% of the total liabilities, and the non-current liabilities were RMB2,567.04 million, accounting for 3.80% of the total liabilities. As at 30 June 2026, the gearing ratio of the Company was 77.63%, representing a decrease of 1.45 percentage points as compared with the same period last year. CAPITAL AND GEARING RATIO As at 30 June 2026, the gearing ratio of the Company (calculated as non-current liabilities over total shareholders’ equity) was 0.13:1 as compared to 0.14:1 at the beginning of the period.
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– 38 – MONETARY CAPITAL AND CASH FLOWS As at 30 June 2026, the monetary capital of the Company was RMB20,109.05 million, representing an increase of RMB4,863.12 million or 31.90% as compared to the beginning of the period. During the period, the net cash flow generated from operating activities of the Company was RMB6,347.76 million, representing a significant increase as compared to the same period of last year, which was mainly due to the fact that the Company has increased its efforts to recover payments and achieved positive results, while investing activities generated net cash flow of RMB-302.43 million and financing activities generated net cash flow of RMB-272.15 million. FUNDING SOURCE AND BORROWING STATUS The Company currently has four funding sources for operation and development, namely shareholder’s funds, trade receivables from customers, bank borrowings and entrusted loan of national funds. The Company arranges borrowings based on each specific project. Except for some exceptions, loans will be raised individually by the Company’s subsidiaries. However, prior approval from the parent company is required in respect of borrowings raised for capital investments. As at 30 June 2026, the Company’s total borrowings amounted to RMB4,281.96 million, all of which amounts were borrowed from various commercial banks and state-policy banks at LPR and entrusted loan of national funds. Among those borrowings, the amount repayable within one year amounted to RMB3,989.03 million, representing a decrease of RMB191.91 million as compared with the beginning of the year; the borrowings repayable after one year amounted to RMB292.93 million, representing a decrease of RMB37.10 million as compared to the beginning of the year. As at 30 June 2026, the Company’s contracted liabilities were RMB37,037.41 million, representing an increase of RMB2,952.66 million from that at the beginning of the period. MAJOR INVESTMENTS HELD, MAJOR ACQUISITION OR DISPOSAL OF SUBSIDIARIES AND THE FUTURE PLAN ON MAJOR INVESTMENTS OR PURCHASE OF CAPITAL ASSETS In the first half of 2026, the Company had made fixed assets investments of RMB559.00 million, which were mainly utilized for investment in technical measures and technical transformation for maintaining the normal production and operation of nuclear power, gas-fired power and hydropower industry layout capability guarantee projects and subsidiaries. There is no significant change in the 2026 investment plan of the Company. Save as disclosed above, the Company did not have any other major investment, significant acquisition or disposal of subsidiaries, or approve any other major investment or plan on acquisition of capital assets during the period.
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– 39 – EXPOSURE TO FLUCTUATIONS IN EXCHANGE RATES AND RELATED HEDGES The export business and the businesses settled in foreign currencies and all deposits denominated in foreign currencies of the Company are exposed to exchange risk. As of 30 June 2026, the Company’s deposits denominated in foreign currencies were equivalent to approximately RMB2,796.87 million. To effectively control the risk of exchange rate fluctuation in the foreign exchange market, the Company has signed contracts of Forward FX sales and purchase with banks for some future foreign currency receivables of overseas projects. USE OF FUND-RAISING PROCEEDS The funds raised by the Company from the issuance of shares and bonds in previous years have been fully utilised in accordance with the intended purposes and timelines as planned. No funds were raised by the Company during the reporting period. TAX POLICIES According to the provisions of Administrative Measures with regard to the Recognition of High and New Technology Enterprises () jointly issued by the Ministry of Science and Technology, the Ministry of Finance and the State Administration for Taxation of the PRC on 29 January 2016 and the Administrative Guidance with regard to the Recognition of High and New Technology Enterprises (ˏ) jointly issued by the Ministry of Science and Technology, the Ministry of Finance and the State Administration of Taxation on 22 June 2016, corporations including five subsidiaries of the Company, namely Harbin Boiler Company Limited, Harbin Electric Machinery Company Limited, Harbin Turbine Company Limited, HE (QHD) Heavy Equipment Company Limited and HE Harbin Power Plant Valve Company Limited were recognised as High and New Technology Enterprises, and shall be entitled to a 15% preferential income tax rate. In accordance with regulations of the State Administration of Taxation, the rate for tax rebate applicable to the Company’s new export products contracts is mainly 13% effective from 1 April 2019. In accordance with the relevant requirements of the Announcement of the Ministry of Finance and the State Administration of Taxation on Improving the Policy of Value-Added Tax Credit Refund (݁ ʮѓ) in 2025, the Company is entitled to a refund of the newly-added credits and a one-time refund of the existing tax credits.
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– 40 – SCIENTIFIC AND TECHNOLOGICAL INNOVATION In the first half of 2026, the Company adhered to enhancing core competitiveness through the in-depth integration of technological innovation and industrial innovation, adhered to innovation leading development, promoted high-level technological self-reliance and self-improvement, accelerated the development of new quality productivity, and helped to build a modern industrial system underpinned by advanced manufacturing. It continuously integrates into the national science and technology innovation system, strengthens the construction of various national-level science and technology innovation platforms, and builds a science and technology innovation system with complete elements, complete functions, flexible mechanisms, and efficient collaboration. It continuously increases R&D investment; R&D investment increased by 24.85% year-on-year in the first half of the year, with a R&D investment intensity of 5.00%. A total of 16 new national-level, provincial and ministerial-level R&D tasks were added. The completion rate of milestone targets for the undertaken major national science and technology projects reached 100%. The Phase-III tasks of key core technology research and development projects, research tasks of central enterprise innovation consortiums and scientific research projects of the Green and Low-Carbon Energy Innovation Institute were advanced as scheduled. It deepens scientific and technological innovation and open cooperation, continues to strengthen in-depth cooperation with Huairou National Laboratory, and carries out the development task for the Jinshan Project of Mengneng Group, a demonstration project under the major special project of new-generation coal-fired power technology. In the first half of 2026, all four 425MW water turbine generator units of the Zhejiang Tiantai Pumped-Storage Power Station, the pumped-storage power station with the world’s rated highest water head and China’s largest single-unit capacity independently developed by the Company, were put into grid-connected power generation. The world’s first 50-MW 4-pole salient-pole distributed phase-modulator independently developed by the Company passed verification and was officially put into operation. The domestic first 16-MW gas turbine prototype (HGT16) independently developed by the Company completed the full-load test of the natural gas generator. Three sets of 85-MW vertical-shaft mixed-flow water-turbine generator units of the Huaneng Zangmu Hydropower Station, Tibet’s first large-scale hydropower station independently developed by the Company, successfully passed the project completion acceptance. The Company independently tackled the key technologies for G115 heat-resistant steel series valves, and the supporting valves have been applied to the Datang Yuncheng 630 Ċ double-reheat million-kilowatt unit. Unit 2 of the Guoxin Suyan Huai’an Salt-Cavern Compressed-Air Energy Storage Demonstration Project, the world’s largest-scale compressed-air energy storage power station in which the Company participated in the development, achieved successful grid-connection on the first attempt and realised full-load power generation simultaneously.
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– 41 – EMPLOYEES, REMUNERATION, STOCK OPTION PLAN AND TRAINING As at 30 June 2026, the Company has a total of 11,118 employees, and the total remuneration amounted to RMB1,129.69 million. In the first half of 2026, there was no significant change in the Company’s remuneration policy. In the first half of 2026, the Company organized a total of 1,164 training sessions with 52,246 participants. INTERIM DIVIDEND The Board does not recommend the payment of an interim dividend for the six months ended 30 June 2026. PROSPECTS According to the forecast of China Electricity Council (CEC), the newly installed power generation capacity across China in 2026 is expected to reach 400 million kilowatts, and the installed capacity of solar power generation will surpass that of coal-fired power in the third quarter. By the end of 2026, China’s total installed power generation capacity will reach approximately 4.3 billion kilowatts, among which the installed capacity of non-fossil energy power generation will stand at about 2.7 billion kilowatts, accounting for around 63% of the total installed capacity. The cumulative installed capacity of wind power and solar power generation will account for half of the total installed power generation capacity, while the proportion of coal-fired power installed capacity in the total installed capacity will drop to approximately 31%. The 15th Five-Year Plan for the Development of the New-Type Energy System proposes that by 2030, China’s conventional hydropower installed capacity will reach about 410 million kilowatts, the in-operation nuclear power installed capacity about 110 million kilowatts, pumped-storage installed capacity about 160 million kilowatts, and new-type energy storage installed capacity about 300 million kilowatts. The Action Plan for Energy Conservation and Carbon Reduction in the Energy Sector (2026-2028) puts forward to close a batch of eligible coal-fired generating units of 300,000-kilowatt class and below in a prudent and orderly manner, encourage the construction of replacement units in compliance with requirements for new-generation coal-fired power, and promote the implementation of cross-generational upgrading and transformation to ultra-(super-)critical standards for a number of 600,000-kilowatt class coal-fired generating units.
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– 42 – In the second half of 2026, the Company will grasp the development direction from the full perspective of national strategies, seize development opportunities amid the optimisation and adjustment of the energy supply-demand structure, and forge core competitiveness for a high-quality start of the 15th Five-Year Plan period. We will keep pressing ahead towards the full-year targets and tasks, and strive to elevate high-quality development to new heights with the resolve of making steady progress through solid work and forging ahead to overcome challenges. We will continuously improve efficiency and benefits with higher standards, accumulate development potential by firmly establishing the concept of value creation, go all out to secure more high-quality orders, and steadily enhance our capacity to generate operating cash flows. We will foster new quality productive forces with greater efforts, comprehensively boost the effectiveness of national-level innovation platforms, step up efforts to tackle key core technologies, deepen the development of new industries to empower transformation and upgrading, and adapt to new development needs through comprehensive digital-intelligent transformation. We will strictly enforce the “Six Guarantees” requirements (guarantee targets for projects under research, guarantee delivery for projects under manufacturing, guarantee performance for newly commissioned projects, guarantee stability for in-operation projects, guarantee performance for international projects, and guarantee safety in production and operation), complete scientific research tasks with high quality and efficiency, continuously deliver on commitments in practice, and fully foster a safe and stable development environment. We will continue to deepen reforms with more practical measures, accelerate the establishment of a lean operation and management system, raise the level of compliance management by running the enterprise in accordance with the law, and advance new development under the 15th Five-Year Plan at a high standard. We will make new and greater contributions to advancing the building of a strong country and the great cause of national rejuvenation through Chinese-style modernisation, and repay shareholders for their attention and support with better operating results. SUBSTANTIAL SHAREHOLDERS’ INTERESTS IN SHARE CAPITAL As at 30 June 2026, the total number of share capital of the Company was 2,236,276,000 shares, including 1,560,705,000 state-owned legal person shares and 675,571,000 overseas H shares. The interests and short positions of shareholders holding 5% or more of the issued share capital of relevant class of share of the Company, which were required to be recorded under the register of interests and short positions kept by the Company pursuant to Section 336 of the Securities and Futures Ordinance (the “SFO”), are set out as follows:
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– 43 – Long positions in the shares of the Company: Name of shareholders Class of shares Number of shares Capacity Percentage to underlying share capital Percentage to total share capital Harbin Electric Corporation State-owned legal person shares 1,560,705,000 Beneficial owner 100% 69.79% JP Morgan Chase & Co. H shares 43,477,641 Beneficial owner/Investment manager/Person entitled to a security interest in the shares/Approved lending agent 6.44% 1.94% Citigroup Inc. H shares 34,201,312 Beneficial owner/Investment manager/Person entitled to a security interest in the shares/Approved lending agent 5.06% 1.53% Save as disclosed above, as at 30 June 2026, the Company did not receive any notification about the interests or short positions in shares or underlying shares of the Company, which are required to be entered in the register pursuant to Section 336 of the SFO. INTERESTS AND SHORT POSITIONS IN SHARES, UNDERLYING SHARES OR DEBENTURES OF THE COMPANY AND ITS ASSOCIATED CORPORATIONS OF DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT In the first half of 2026, none of the Directors, Supervisors and Senior Management of the Company and their associates had or were deemed to have any interests and short positions in any shares, underlying shares or debentures (as the case may be) of the Company or any of its associated corporations (within the meaning of Part XV of the SFO) which were required to be notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests and short positions which they were taken or deemed to have under the SFO), or which were required to be recorded in the register maintained by the Company pursuant to section 352 of the SFO, or which were required to be notified to the Company and the Stock Exchange pursuant to the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 to the Listing Rules.
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– 44 – THE MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS AND SUPERVISORS The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules. Upon making specific enquiries to the Directors and Supervisors, it is confirmed that all Directors and Supervisors have complied with the provisions of the Model Code for Securities Transactions by Directors of Listed Issuers throughout the period. AMENDMENTS TO THE ARTICLES OF ASSOCIATION On 22 May 2026, the Company conducted a comprehensive revision to its Articles of Association in accordance with the Company Law of the People’s Republic of China, the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and other relevant laws, administrative regulations, departmental rules and the securities regulatory rules of the place where the Company’s shares are listed. For details, please refer to the announcement of the Company dated 22 May 2026 concerning the details of the Articles of Association. PURCHASE, SALE OR REDEMPTION OF THE COMPANY’S LISTED SECURITIES In the first half of 2026, neither the Company nor any of its subsidiaries purchased, sold, redeemed or cancelled any of the Company’s listed securities (including sale of treasury shares). As at 30 June 2026, the Company held no treasury shares. CONTINGENT LIABILITIES As at 30 June 2026, the guarantees provided by the Company to its subsidiaries and the guarantees between subsidiaries of the Company amounted to RMB10.73 million in aggregate. There was no external guarantee of the Company. PLEDGE OF ASSETS As at 30 June 2026, the Company pledged its assets of RMB275.95 million (as at 30 June 2025: RMB289.84 million) to secure loans for liquidity. COMPLIANCE WITH THE CORPORATE GOVERNANCE CODE In the first half of 2026, by strictly complying with relevant provisions such as the Company Law of the People’s Republic of China and the Securities Law of the People’s Republic of China, the Company has fully complied with the provisions set out in the Corporate Governance Code in Appendix C1 of the Listing Rules and, where appropriate, adopted the recommended best practices as specified therein.
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– 45 – The Board of the Company is responsible for the corporate governance functions. In the first half of 2026, the Board has strictly observed the policies and practices in compliance with laws and regulatory requirements, and also enacted and amended its regulations with reference to those policies and practices, with an aim to perfect our corporate governance policies and practices. The Company continues to focus on the training and continuous professional development of directors and senior management, and actively carries out internal review and rectification work to improve the level of the Company’s governance. THE AUDIT COMMITTEE The Audit Committee of the Company has reviewed and approved the interim report of the Company for the six months ended 30 June 2026. Members of the Audit Committee of the Company include: Mr. Gao Yi-bin, Mr. He Yu, Ms. Niu Xiang-chun and Mr. Li Xie-hua. AUDITORS ShineWing Certified Public Accountants LLP, the Company’s auditor, has carried out a review of the unaudited interim report of the Company for the six months ended 30 June 2026 in accordance with the requirements of “China Certified Public Accountant Review Standard No. 2101 – Review of Financial Statement”. SHAREHOLDERS’ MEETING On 22 May 2026, the annual general meeting, the H shares class meeting and the domestic shares class meeting of the Company were convened in Harbin, the PRC. The following directors attended the annual general meeting, the H shares class meeting and the domestic shares class meeting: Mr. Huang Wei, Mr. Liu Qing-yong, Mr. Du Xing-kai, Mr. He Yu, Ms. Niu Xiang-chun, Mr. Gao Yi-bin and Mr. Li Xie-hua. For the results of relevant meetings, please refer to the announcement of the Company dated 22 May 2026 on the poll results of the general meeting. OTHER DISCLOSEABLE INFORMATION In the first half of 2026, the Company did not have any other information which was required to be disclosed pursuant to Rules 40.3(a) to (j) under Appendix D2 of the Listing Rules.
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– 46 – DOCUMENTS AVAILABLE FOR INSPECTION The Articles of Association of the Company and the original copies of the interim report and the reviewed financial statements for the six months ended 30 June 2026 are available for inspection at the head office of the Company at 1399 Chuangxinyi Road, Songbei District, Harbin, the PRC. By Order of the Board Harbin Electric Company Limited Ai Li-song Company Secretary Harbin, the PRC, 26 August 2026 As at the date of thi s announcement, th e executive Directors of t he Com pany are Mr. Huang Wei, Mr. Liu Qing-yong and Mr. Du Xing-kai; and the independent non-executive Directors of the Company are Mr. He Yu, Ms. Niu Xiang-chun, Mr. Gao Yi-bin and Mr. Li Xie-hua.