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. 2026 INTERIM RESULTS ANNOUNCEMENT OVERVIEW The Company’s financial position as at 30 June 2026 and its operating results for the six months ended 30 June 2026 were as follows: • Operating revenue amounted to RMB175.907 billion, representing a decrease of RMB61.626 billion (or 25.94%) from RMB237.533 billion in the first half of 2025. • Total profit amounted to RMB4.019 billion, representing a decrease of RMB1.260 billion (or 23.86%) from RMB5.279 billion in the first half of 2025. • Net profit amounted to RMB3.077 billion, representing a decrease of RMB0.996 billion (or 24.45%) from RMB4.073 billion in the first half of 2025. • Net profit attributable to Shareholders of the listed company amounted to RMB2.326 billion, representing a decrease of RMB0.773 billion (or 24.95%) from RMB3.099 billion in the first half of 2025. • Basic earnings per Share amounted to RMB0.05, compared to RMB0.09 in the first half of 2025. • Total assets as at 30 June 2026 amounted to RMB806.794 billion, representing a decrease of RMB32.695 billion (or 3.89%) from RMB839.489 billion as at the end of 2025. • Shareholders’ equity as at 30 June 2026 amounted to RMB184.872 billion, representing an increase of RMB1.313 billion (or 0.72%) from RMB183.559 billion as at the end of 2025. • Value of newly signed contracts amounted to RMB413.637 billion, representing a decrease of RMB134.565 billion (or 24.55%) from RMB548.202 billion in the first half of 2025. Note: The percentages of increase or decrease are calculated based on the figures denominated in RMB.
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– 2 – I. CHAIRMAN’S STATEMENT Dear Shareholders, On behalf of the Board of Directors of MCC, I am pleased to present to you the interim results for the first half of 2026, and would like to express our sincere gratitude to all shareholders, partners and friends from all sectors of society for your long-standing trust, care and support for the Company. The year 2026 marks a pivotal year for laying a solid foundation at the start of the “15th Fiv e-Year Plan” period, and also a critical period for the Company to deepen its transformation and upgrading and to tackle key challenges with concerted efforts. At present, as China’s supply-side structural reform continues to deepen, the industry landscape is undergoing profound changes. The ferrous metallurgy industry has completed its transition from quantitative growth to quality enhancement, while the infrastructure and construction industries have shifted from a phase of rapid growth to a period of deep adjustment. These adjustments are not temporary or short-term in nature, but represent a long-term and deep-seated structural reshaping. In the first half of 2026, in the face of a complex and challenging market environment and multiple pressures, MCC remained steadfast in its confidence, rose to the challenges, and proactively adjusted its business mix and improved quality, with a view to strengthening its risk resilience and core competitiveness. As a result, the Company maintained overall stability in its operations and achieved tangible results in its transformation and upgrading. First, the quality of operations remained stable and the business structure continued to improve. In the first half of the year, the Company achieved operating revenue of RMB175.907 billion and total profit of RMB4.019 billion. The cash-to-revenue ratio reached 105.32%, representing a year-on-year increase of 18.89%. The “Fiv e-Five Strategy” was further advanced, with the “One Core” (metallurgical, non-ferrous and mining engineering) business accounting for 21.37% of total operating revenue, up by 4.77 percentage points, of which, revenue from the mining engineering business stood at RMB4.111 billion, representing an increase of 32.58% compared with the same period last year, and revenue from research and design subsidiaries amounted to RMB43.262 billion, remaining broadly flat compared with the same period last year. The “Five Featured” businesses accounted for 11.32% of total operating revenue, up by 2.08 percentage points, among which the digital and intelligent applications business generated revenue of RMB500 million, representing a year-on-year increase of 17.06%.
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– 3 – Second, the role of innovation service platforms was fully leveraged, and breakthroughs were achieved in technological innovation. In the first half of the year, the Company secured 25 metallurgical science and technology awards and 2 China patent excellence awards, led the formulation of 12 national standards, and obtained 1,381 newly granted invention patents. The Company further expanded its full-life-cycle operation and maintenance services for mines, and successfully completed and put into operation a smart mining centralized control centre integrating remote control, intelligent scheduling and AI-assisted decision-making, facilitating the intelligent upgrading of mining construction and operations. Focusing on the high-end, intelligent and green transformation of the ferrous metallurgy industry, the Company’s independently developed ful l-l ocalization hydroge n-b ased shaft furnace hot DRI pneumatic conveying technology and equipment was successfully applied to Baosteel Zhanjiang’s near-zero carbon production line, filling a technological gap in the industry. In addition, the Company deepened the integration of AI and digital intelligence, with five projects selected as typical cases of AI application by the Ministry of Industry and Information Technology in 2025. Third, marketing quality steadily improved and project management and performance capabilities continued to be enhanced. The Company precisely targeted quality markets, quality customers and quality projects, deepened “head-to-head” strategic cooperation with key clients, and established an efficient and coordinated integrated marketing system, achieving continued improvements in both domestic market development and overseas market expansion along the “Belt and Road Initiatives”. At the same time, the Company advanced lean performance management and upgraded the whole-life-cycle project management and control system. Leveraging standardized management manuals, the Company built an integrated domestic and cross-border control framework, and implemented effective measures to ensure the delivery of lean project management. Steadfast progress leads to a new journey ahead. Looking forward, the Company will continue to firmly anchor itself in the long-term evolution of the industry, take proactive actions, and unswervingly advance transformation and upgrading. We will further systematically reshape our development model, growth drivers, profit structure and business logic, with a view to creating a differentiated competitive advantage unique to MCC. Through practical efforts and determined actions, we will strive to deliver outstanding performance, repay the trust and support of our shareholders, and write a new chapter in MCC’s high-quality and sustainable development. Chairman: Li Zhongze
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– 4 – II. BUSINESS OVERVIEW (I) EXPLANATION OF THE INDUSTRIES THAT THE COMPANY ENGAGES IN AND THE PRINCIPAL OPERATING RESULTS DURING THE REPORTING PERIOD 1. Overview of the Company’s Major Business Activities The Company actively advances the top-level design for the 15th Five-Year Plan, continuously consolidates its strategic positioning as “International Leader in Metallurgical Construction and National Pioneer in the Two New Construction”. It has established a new business system layout known as “One Core, Two Main Bodies and Five Features (ːՇ˴ʞतЍ) ”, namely taking metallurgical construction as the core, industrial construction and infrastructure construction as the two main bodies, and engineering services, new materials, high-end equipment, energy and environmental protection, as well as digital and intelligent applications as the five featured businesses. The Company is firmly pushing forward its transformation towards quality and efficiency-driven growth and accelerating the pace of corporate re-transformation and upgrading. (1) “One Core” Businesses: Metallurgical Engineering, Non-ferrous and Mining Engineering Metallurgical engineering, non-ferrous and mining engineering form the core business of the Company. As the founder of New China’s metallurgical industry, the world’s largest, most technologically advanced and most complete industrial chain metallurgical construction contractor and operation-service provider, leveraging its full industrial chain integration strengths integrating engineering consulting, survey, design and construction, the Company is capable of delivering full-life-cycle services covering iron and steel, non-ferrous metallurgy, mining and new energy metals, maintaining an absolutely leading position in the global metallurgical engineering field. As the national team in metallurgical construction, the Company is a leading enterprise in the research, development and engineering application of hydrogen metallurgy technology in China, having established a comprehensive technical system covering process R&D, core equipment, engineering design and project construction. The world’s first industrial-scale hydrogen-based vertical furnace project utilizing coke oven gas without reforming, designed by the Company, has successfully demonstrated the large-scale industrialization of hydrogen metallurgy; the independently developed, domestically produced complete set of hydrogen-based vertical furnace technologies covers the entire process chain from reduction smelting and hot DRI conveyance to electric arc furnace steel-making, breaking foreign technological monopolies and providing strong support for the low-carbon transition of China’s steel industry.
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– 5 – (2) “Two Main Bodies” Businesses: Industrial Construction and Infrastructure Construction Industrial construction and capital construction are the two main businesses of the Company. Among them, industrial construction focuses on electronic factories, precision workshops, machinery and equipment manufacturing, light industry, petrochemicals, conventional power engineering, industrial parks and other sectors; capital construction mainly covers high-rise building construction, urban renewal, six-network development, as well as infrastructure, water conservancy works and municipal engineering. The business models primarily include EPC general contracting, comprehensive area development (integrated primary and secondary land development), whole-process engineering consultancy, PPP and ABO. The Company boasts a complete industrial chain spanning survey and design, investment and financing, engineering construction, through to operation and maintenance. It has undertaken numerous landmark building and infrastructure projects, and secured hundreds of honours including the Luban Prize and National Quality Engineering Award. Its business footprint covers the whole of China and countries along the “Belt and Road” initiative. (3) “Five Features” Businesses: Engineering Services, New Materials, High-end Equipment, Energy and Environmental Protection, and Digital Intelligence Applications In recent years, the Company has accelerated its pace of re-transformation and upgrading, strived to expand its five featured businesses of engineering services, new materials, high-end equipment, energy and environment protection, and digital intelligence applications, fostered more diversified growth drivers and strengthened its resilience against risks. As an integral component of the Company’s “One Core, Two Main Bodies and Five Features” business system, the engineering services business principally covers project management, construction supervision, survey, quality inspection services, operation services and whole-p rocess consultancy services for engineering projects in metallurgy, non-f errous metals and mining, building construction, municipal infrastructure construction and other sectors. It has built a comprehensive service system featuring diversified business formats and maintained an industry-l eading edge, successfully developing a number of market-r enowned brands such as “MCC Baosteel Technology”, “CISDI Consulting (ፔ༔)”, “MCC Inspection”, “CERIS”, and “Yuan Da International”.
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– 6 – The Company’s new materials business mainly focuses on the research, development and production of green, low-carbon and high-p erformance new materials, covering coppe r-b ased materials, aluminium-based materials, carbon materials, new building materials and other materials. Drawing on high-q uality domestic and overseas R&D resources and guided by national strategic needs and industrial upgrading drivers, the Company actively establishes an innovative R&D system for new materials. By accelerating the industrialisation of technologies such as high-end aluminium materials and eco-friendly brass, the Company has successfully developed and actively promoted the application of 7XXX series high-performance aluminium alloy ingots, hundred-kilogram-grade eco-friendly brass, super welding wires and powder products. It has also successfully produced high-q uality aluminium-scandium master alloys complying with national standards, achieving domestic leading standards in key indicators including high homogeneity, fine grains and low impurity content. The Company’s high-end equipment business mainly covers steel structure manufacturing and installation, metallurgical core equipment manufacturing and assembly integration, and mining engineering equipment manufacturing, including the manufacturing of metallurgical special equipment and non-metallurgical equipment (general equipment and special equipment). In particular, in the sector of core metallurgical process equipment, the Company has built up profound technological expertise, extensive engineering experience and a leading domestic market share. Certain types of its equipment have attained internationally advanced standards. The Company also boasts distinctive strengths and practical experience in promoting the intelligentisation (unmanned overhead travelling cranes and intelligent rolling lines), large-scale development, high efficiency, energy conservation and environmental performance of metallurgical equipment. As a pioneer in the domestic industrial automation field where core equipment is independently controllable, the Company has independently developed hig h-p erformance inverters and intelligent controllers, successfully breaking the long-term monopoly held by imported brands. It systematically advances domestic substitution and digital and intelligent transformation of key industrial equipment. Meanwhile, the Company has concentrated on the R&D and manufacturing of electrical equipment for industrial enterprises and has established an independent core product portfolio covering variable-f requency drives, high-p ower power supplies and power quality solutions.
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– 7 – The Company’s energy and environmental protection business mainly covers the engineering construction and operation services for municipal solid waste treatment, new energy power generation (clean energy power generation including wind power, solar power and hydrogen energy), energy storage (including clean energy storage such as solar energy, wind energy, hydropower, hydrogen energy, etc.), water treatment (including sewage treatment, industrial wastewater recycling, reclaimed water business, sludge disposal, etc.), air pollution control (including industrial waste gas emission treatment), and ecological restoration (river regulation, soil and land heavy metal pollution control, mine restoration). The Company possesses domestically leading and internationally advanced technologies and extensive engineering track records in ultra-low emission technologies for areas such as the metallurgical industry, advanced treatment and reuse of industrial wastewater, resource utilization of metallurgical solid waste, and efficient recovery and utilization of industrial residual heat and energy; the Company has established a significant brand presence in urban environmental protection sectors such as waste incineration power generation (grate furnace technology), comprehensive water environment treatment (treatment of black and odorous water bodies, river basin treatment) and soil remediation, and MCC Ecological Environmental Protection under the Company. The Company operates 60 water plants with a total designed capacity of over 4 million tonnes per day. Its water treatment capacity ranks among the forefront of central construction enterprises. It has established a full industrial chain service system covering urban water supply, municipal sewage treatment, industrial wastewater treatment and sludge treatment & disposal. The Company’s digital intelligence applications business mainly provides full-process digital solutions such as smart engineering management systems and industrial internet platforms, digital transformation consultancy and IoT technology applications, as well as production intelligent services including the manufacturing of industrial robots, intelligent production scheduling, predictive equipment maintenance and AI visual inspection for the metallurgical and construction sectors. The Company takes an industry-leading position in the in-depth application of industrial scenarios. It has successfully developed products including the CISDigital AI Eyes Large Model (CISDigital AIۨand vertical large models tailored for the iron and steel industry, which have been deployed and applied at multiple iron and steel enterprises. The Company has also developed the first domestic self-developed intelligent construction robot cluster, spearheading the emergence of new ecosystems and new industries within the construction sector.
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– 8 – 2. Overview of the Industry Landscape for Major Businesses of the Company At this stage, China’s iron and steel industry has moved past the phase of extensive development model of scale expansion and entered a new era of high-quality development featuring stock optimisation, structural reshaping, green-oriented quality improvement and digital-intelligent empowerment. The industry’s transformation centres heavily on two major themes: lo w-carbon green development and intelligent upgrading. With the rapid advancement of digital technologies and continuous emergence of cuttin g-e dge artificial intelligence, new technologies including ultr a-l ow emissions, ultimate energy efficiency, hydrogen metallurgy, shor t-r oute electric-arc furnace processes and industrial AI are scaling up from demonstration pilots to large-scale application. Meanwhile, policy and market constraints have come into force one after another, including the compliance obligations for the iron and steel sector under China’s national carbon market, the official launch of charges under the EU Carbon Border Adjustment Mechanism (CBAM) in 2026, and the national three-year campaign (2026–2028) for energy conservation and carbon reduction covering nine major high-energy-consuming industries. These factors further render green and intelligent retrofitting a core imperative for metallurgical engineering construction and technical renovation, unlocking growth potential for businesses such as metallurgical design, engineering contracting, operation and maintenance services and equipment manufacturing. Driven by national strategies relating to new-quality productive forces, new industrialisation and the “dual carbon” goals, the domestic industrial construction and infrastructure industries are undergoing structural transformation. Market potential continues to be unleashed in areas including green factory upgrading, solid waste treatment and low-carbon park retrofitting. Emerging industries such as new energy and high-end equipment are also fuelling growing demand for the construction of hig h-standard factories and smart industrial parks. Supported by the 15th Five-Year Plan and the coordinated regional development strategy, the development of the six networks covering transport, energy, water conservancy and other sectors has become a core priority for infrastructure investment. The infrastructure market is shifting from scale expansion to addressing weak links, structural adjustment and functional improvement. The building construction industry has entered an inventory-driven era. Urban renewal, renovation of ageing facilities and high-quality residential development have replaced traditional shantytown redevelopment. Competition within the industry has intensified, and benefits continue to concentrate on central construction enterprises with robust risk control capabilities and comprehensive strengths.
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– 9 – The overseas construction industry generally features low-speed growth and structural divergence. Demand for conventional building construction and commercial real estate remains subdued on the whole. New energy infrastructure, cross-border transport trunk lines, digital infrastructure and renovation of existing buildings have emerged as core growth tracks, marking a notable shift in industry demand structure. Rooted in markets along the “Belt and Road”, the Company continues to consolidate its core principal businesses in metallurgy and mining. Aligning with the industrialisation, new energy industry and infrastructure development priorities of various host countries, the Company actively explores emerging markets in light of local industrial layout plans. (II) ANALYSIS ON CORE COMPETITIVENESS DURING THE REPORTING PERIOD 1. Strong Value Creation Capacity. Leveraging its technical and qualification advantages accumulated over more than 70 years in the entire process and industrial chain of steel metallurgy, the Company strengthens its core metallurgical construction business to consolidate the “basic disk” of traditional advantages; optimizes its two main businesses of industrial construction and capital construction to consolidate the “ballast stone” of scale and efficiency; expands its five characteristic businesses including engineering services, new materials, high-e nd equipment, energy and environmental protection, and digital intelligence applications to develop new tracks for transformation and upgrading, forming a diversified business system layout of “One Core, Two Main Bodies and Five Features (ːՇ˴ʞतЍ )”. This business structure holds distinct advantages in terms of reinforcing business synergy and enhancing resilience. Through sharing technologies, customer resources and supply chains among related businesses, the Company helps form synergy effects, further reduces operating costs, improves overall competitiveness, and provides strong support for expanding emerging market space.
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– 10 – 2. Strong Market Competitiveness. The Company is the world’s largest and strongest metallurgical construction contractor and metallurgical enterprise operation service provider, with absolute competitive advantages and a leading position in the field of metallurgical engineering. The Company has world-leading technical strength in the field of metallurgical engineering, and has accumulated core technical advantages and design and construction capabilities throughout all links of metallurgical engineering, especially independent core technologies in blast furnaces, converters, steel rolling, etc.; it has all the largest and strongest metallurgical design institutes ranked among the top in the domestic metallurgical engineering field, and has taken the lead in completing the planning, design and construction of almost all large and medium-sized metallurgical enterprises in China, occupying most of the domestic metallurgical market share, with a global market share far exceeding that of its competitors, giving it an unshakable market influence. 3. Strong Innovation Driving Force. The Company has a relatively complete technological innovation system in fields such as metallurgical construction, industrial construction, capital construction and featured business, and is committed to original and leading technological R&D and transformation and application. As at the end of the Reporting Period, the Company has 25 national-level scientific and technological R&D platforms, more than 56,000 valid patents, 8 “Science and Technology Reform” and “Dual Hundred” enterprises, 10 nationa l-level manufacturing single champions, and 14 specialized, refined, featured and new “little giant” enterprises. It has accumulated 58 national science and technology awards, issued 72 international standards and 670 national standards. It not only has a strong say in the field of metallurgical construction, but also shows strong development potential in emerging fields such as green low-carbon and intelligent construction. As at the end of the Reporting Period, the Company has 1 academician of the Chinese Academy of Engineering, 10 national masters of engineering survey and design, 2 experts of the National Hundred, Thousand and Ten Thousand Talent Project, 3 winners of the Grand Skill Award of China, 3 gold medalists of the World Skills Competition, 86 National Technical Experts, and 10 national skill master studios, as well as more than 60,000 engineering and technical personnel, with strong scientific research resources and a solid scientific research team.
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– 11 – 4. Strong Resource Allocation Capacity. The Company has unique full-industrial chain system integration capabilities, with 11 engineering design and research companies, 15 large-scale construction enterprises, 4 comprehensive Class A design qualifications, 3 comprehensive Class A survey qualifications, 9 comprehensive supervision qualifications, and 50 special-grade general contracting qualifications, forming a high-level, diversified and comprehensive qualification matrix. The Company has a complete engineering construction industrial chain covering scientific research and development, consulting and planning, surveying and mapping, engineering design, engineering supervision, civil engineering construction, installation and commissioning, operation management, equipment manufacturing, technical services and import and export trade. Compared with general engineering design enterprises, engineering construction enterprises or equipment manufacturing enterprises, it can integrate resources across the entire industrial chain to provide customers with more comprehensive and integrated services. At the same time, by effectively exerting the integrated role of the “Five Linkages” of internal units, it further strengthens the coordinated development and complementary advantages of the upstream and downstream of the industrial chain, and improves the Company’s market competitiveness in comprehensive projects. 5. Strong Cultural Soft Power. The Company’s history can be traced back to the earliest steel industry construction force in New China, and it is the pioneer and main force of China’s steel industry. Since 1948, it has participated in the construction of Anshan Iron and Steel, the “cradle of China’s steel industry”, and then constructed Wuhan Iron and Steel, Baotou Iron and Steel, Taiyuan Iron and Steel, Panzhihua Iron and Steel, Baoshan Iron and Steel, etc. It has successively undertaken the planning, survey, design and construction projects of the main production facilities of almost all large and medium-sized steel enterprises in China, and is the founder of building the “steel frame” of New China. Thus, it has accumulated and formed an excellent inheritance characterized by fearlessness of hardships, forging ahead, unity and struggle, and courage to fight, which has become a huge spiritual wealth of the Company. The Company anchors the Goals for “one building, two most, five strong”, and guides all cadres and employees to move forward in the same direction with simplicity and honesty, responsibility, integrity and courage to strive for excellence, bursting out new vitality again. The excellent corporate culture formed and accumulated in this process is the Company’s unique winning formula and a strong spiritual force for the long-term development of the foundation, and has become an important part of the Company’s core competitiveness.
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– 12 – (III) OPERATION RESULT DISCUSSION AND ANALYSIS 1. Overview of Operations and Management during the Reporting Period In the first half of 2026, centring firmly on its strategic positioning as “International Leader in Metallurgical Construction and National Pioneer in the Two New Construction”, the Company forged ahead with resolve and delivered solid results. Adhering to the principle of driving industrial innovation through scientific and technological innovation, the Company coordinated progress across various undertakings including market expansion, operation and management, organisational development, reform and growth. Overcoming difficulties and forging ahead with determination, the Company maintained an overall stable development momentum featuring steady improvement in quality and demonstrated strong development resilience. First, the Company’s operational quality has been improved continuously. The financial structure was continuously optimised. As at the end of June, the asset-liability ratio stood at 77.1%, representing a decrease of 1.04 percentage points as compared to the beginning of the year. The cash collection ratio on operating revenue reached 105.3%, representing an increase of 18.9 percentage points year-on-year. Interest-bearing debt decreased by RMB48.8 billion year-on-year, representing a decrease of 37.9%. During the Reporting Period, the Company maintained an AAA credit rating for its onshore entities and debt instruments. Offshore, it has secured investment-grade international credit ratings from four rating agencies (Moody’s, S&P, Fitch and CCXAP). The Company’s capacity for sustainable operation has been continuously strengthened. Second, the Company’s business structure was continuously optimised. During the Reporting Period, the Company further advanced the “Five-Five Plan” strategy. The proportions of newly signed contract value from core businesses and industrial construction in the Company’s total newly signed contract value rose by 4.8 and 2.4 percentage points respectively year-on-year, and the contract structure continued to improve. The “head-to-head” cooperation mechanism yielded initial outcomes, with marketing priority and concentration continuously improved. The Company has joined hands with well-known companies in the industry to create the “City Partner” brand profile, and interconnectedly explored the market for digital transformation of production lines. The foundation of overseas business remained stable. The value of newly signed overseas contracts amounted to RMB36.85 billion, of which newly signed contracts for core businesses accounted for nearly 70%. Breakthroughs were achieved for major projects across multiple areas with successive implementation of such projects . Accordingly, growth drivers for the Company’s transformation and development have been continuously built up.
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– 13 – Third, the Company’s project management and control was steadily strengthened. Standardised project construction was further implemented. The Engineering Project Management Manual was applied in full coverage, and the Commercial Management Manual was comprehensively promoted. The cumulative settled amount exceeded the half-year target. Full-cycle management of project construction periods was strengthened. The Guiding Opinions on Project Construction Period Management was issued and implemented. The “three-level plan management and three-level node control” mechanism was adopted to advance on-time project delivery and efficient contract performance, and to reduce costs and improve benefits via progress management and control. The overseas engineering management system was continuously improved. The Measures for Overseas Engineering Project Management were formulated to accelerate the establishment of integrated management and control of domestic and overseas projects. Fourth, remarkable achievements were made in scientific and technological innovation. Efforts on technological research were intensified, and major breakthroughs were achieved in a number of core projects. The first domestically-developed all-localised hydrogen-based shaft furnace hot direct reduction iron pneumatic conveying technology and equipment independently developed by the Company were successfully put into operation on the near-zero carbon production line at Baosteel Zhanjiang, breaking foreign technological monopolies. The sel f-developed pilot prototype for ultra-h igh temperature electric heating of hydrogen-r ich coal gas realised stable heating of coal gas at 1,200 ĘC. A te n-t housand-t onne production line for in-s itu/ cold-s tate dephosphorisation and iron recovery of steel slag was completed. During the Reporting Period, the Company was awarded 25 Metallurgical Science and Technology Awards for 2026 (including 5 first awards) and 2 China Patent Excellence Awards. A total of 1,381 new invention patents were granted to the Company. The Company accelerated the industrialisation of scientific and technological achievements and formulated the MCC Industrialisation Plan for Major Scientific and Technological Achievements in 2026 ( ʕʕз2026 ྌ), providing technical reserves for subsequent industrial application.
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– 14 – Fifth, in-depth progress was achieved in reform and transformation. The Company further optimised headquarters functions and enhanced governance capacity, streamlined the headquarters decision-making list and cut decision-making items by 23% in aggregate, effectively shortening the decision-making cycle and speeding up market response. The Company accelerated reform and empowerment of subsidiaries, and effectively strengthened the financial strength and market risk resilience of subsidiaries. The Company also promoted a number of subsidiaries to accelerate integrated development expanding from ferrous metal business to non-ferrous metal and mining sectors. The Company issued the Work Guidelines for the Special Campaign of the “Management Improvement Year” ( “ ၍ଣʺϋ ” ਖ਼ධБਗʈЪ ˏ) and formulated the Benchmarking, Diagnosis and Improvement List ( ࿁ᅺൢᓙʺఊ ) covering 348 key priorities for management improvement to ensure the orderly implementation of all management improvement tasks. Standout results were achieved in reform and transformation. In the special assessment for the “Science and Technology Reform (ҷ )” and “Double Hundred Action ( ᕐϵ )”, the Company attained its best-ever performance with 5 benchmark ratings and 3 excellent ratings, laying a more solid foundation and generating stronger momentum for the Company’s reform and development. 2. Main Businesses by Industry (1) Core Businesses – Metallurgical Engineering, Non-ferrous Metal and Mining Engineering During the Reporting Period, the Company accelerated the extension of its integrated advantages across the entire metallurgical engineering construction industry chain to non-ferrous engineering and mining engineering sectors. It developed three industrial chains covering metallurgical engineering, non-ferrous engineering and mining engineering, and continuously strengthened its core supporting function of “supplying core technologies and equipment for the global metal industry”. From January to June, the newly-signed contract value of the Company’s core businesses amounted to RMB104.03 billion, accounting for 25.1% of total newly signed contracts value, and representing an increase of 4.8 percentage points compared with the previous year; including RMB61.72 billion for metallurgical engineering and RMB42.31 billion for non-ferrous metal and mining engineering. Revenue from the core business amounted to RMB37.8 billion, accounting for 21.4% of total revenue, and its proportion of the Company’s total operating revenue increased by 4.8 percentage points as compared with the previous year. Of which, revenue from the mining engineering business stood at RMB4.11 billion, representing an increase of 32.6% compared with the same period last year.
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– 15 – During the Reporting Period, the first set of wholly domestically developed hydrogen-based vertical furnace hot direct reduction iron pneumatic conveying technology and equipment, independently researched and developed by the Company, was successfully commissioned at the nea r-z ero-c arbon production line of Baosteel Zhanjiang Iron & Steel, breaking the foreign technological monopoly and injecting strong momentum into the green, intelligent and high-quality development of China’s iron and steel industry. In the overseas market, the Company successfully signed the agreement for the Khoemacau Copper Mine Expansion in Botswana, laying an important foundation for the Company to further establish its presence in the Southern African market and build an overseas mining brand. The operating revenues of each segment for the core business of the Company and the proportion accounting for the total income of the core business are as follows: Unit: RMB’000 Items of revenue January – June 2026 January – June 2025 Amount Proportion Amount Proportion % % Metallurgical engineering 31,579,228 83.54 33,479,321 84.05 Non-ferrous engineering 2,109,584 5.58 3,253,619 8.17 Mining engineering 4,111,332 10.88 3,100,936 7.78
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– 16 – During the Reporting Period, the key core business projects tendered and entered into by the Company are as follows: No. Name of Project (Contract) Contract Amount (RMB100 million) Domestic Projects 1 EPC, Engineering General Contracting Project for Mining Exploitation and Mineral Products Processing Services of Fulin Construction Sandstone Mine, Wangbu Village, Longhu Town, Wanxiu District, Wuzhou City ( ψ̹ ᘤ EPC e ̍ධͦ ) 47.0 2 Open-pit Mining Project of Kurgaksayi Iron Mine, Qinghe County, Xinjiang (ဧ៝дᔜԱ᚛ᘤ ᚣ˂મᘤධͦ ) 15.2 3 EPC General Contract for 2 Million Tons Per Annum Coking Production Resumption Project of Yingkou Dafeng Coking Co., Ltd. (ʮ̡ϋ ପ 200 ຬኚೊʷልପධͦ EPC̍ʈΥΝ ) 11.1 4 Shaft and Tunnel Engineering Contract for 5 Million Tons Mining and Processing Project of Dangba Spodumene Mine, Ma Er KangJ inxin Mining Co., Ltd. (ږ ʮ̡ᙣᜠሾͩᘤ 500 ຬኚમ፯ʈ ʈΥΝ ) 8.9 5 EPC General Contract for the Newl y-b uilt Ironmaking Project of Shanxi Jingang New Materials Technology Co., Ltd. ( ᚛ධͦ EPC̍ ) 5.0 Overseas Projects 1 Mining Services Agreement for Khoemacau Copper Mine Expansion Project, Botswana (৵Ͻზᘤ ਕᙄ ) 46.73 2 Supply and Construction Contract for Brownfield Revamp of Gas Purification Section 2.3, Qarmet, Kazakhstan (۞ ᔜдվ Qarmet ंଋʷ 2.3ಅήҷிධͦ ʈΥΝ ) 3.82
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– 17 – (2) Main Businesses – Industrial Construction and Infrastructure Construction The Company firmly grasps the two main business segments of industrial construction and urban renewal, focuses on emerging tracks including electronic manufacturing plants, new energy and data centres to capture market share, actively integrates into the national strategic layout for the development of the “Six Networks”, deepens innovation in the commercial model of urban renewal, and unlocks market potential through policy dividends. During the Reporting Period, the Company further explored core local markets of its subsidiaries, shortened operational radius and improved marketing performance. Meanwhile, it focused on key regions in economically strong provinces and strengthened targeted marketing. The newly signed contract value for industrial construction and infrastructure businesses totalled RMB256.0 billion, of which newly signed contract value for industrial construction stood at RMB63.46 billion and that for infrastructure reached RMB192.54 billion. Orders from economically vibrant regions registered steady growth. Operating income of RMB119.08 billion was achieved in main businesses. The operating revenues of industrial construction and infrastructure construction of the Company and the proportion accounting for the total revenue of the main businesses are as follows: Unit: RMB’000 Items of revenue January – June 2026 January – June 2025 Amount Proportion Amount Proportion % % Industrial construction business 17,877,523 15.01 21,628,523 12.86 Infrastructure construction business 101,199,480 84.99 146,571,010 87.14
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– 18 – During the Reporting Period, the main construction projects tendered and entered into by the Company are as follows: No. Name of Project (Contract) Contract Amount (RMB100 million) Domestic Projects 1 Tangshan Jingtang Smart Port Science and Technology Innovation Demonstration Park Urban Renewal Project (௴ ̹һอධͦ ) 125.4 2 Engineering Drawing Design and Engineering General Contracting for Reconstruction Plot 02 (Lezhu Area) under the Urban Village Renovation Project of Liantang Economic Cooperative, Huocun Community, Yunpu Subdistrict, Huangpu District, Guangzhou City ( ᄿ ʕӀҷிධ ܔ02̍ΥΝ ) 20.5 3 EPCO Project for Urban Renewal of Bowang District (Gaochao River Area), Ma’anshan City – Infrastructure Weaknesses Remediation and Quality Improvement Project for Gaochao River Area, Bowang District, Ma’anshan City (˪ਜ ) EPCO –ሯ ʺධͦ ) 19.6 4 Contract for Smart Oasis Intelligent Innovation Center (౽௴ ʕːΥΝ ) 16.7 5 Phase I of the Dongsheng Hexin 3D Integrated Chip Manufacturing Project, Shanghai˪ණϓႡி ɓಂ ධͦ 16.5 6 EPC General Contract for Auto Parts Project of Jingmen Lingtou Intelligent Technology Co., Ltd. (ʮ̡ ӛԓཧධͦ EPC̍ΥΝ ) 14.7 7 Engineering General Contracting for Commercial, Residential and Supporting Works of TOD Plot at Longhu High School Affiliated Station, East Guangdong Intercity Railway (ڝ ʕ१ TOD̍ ) 12.9
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– 19 – No. Name of Project (Contract) Contract Amount (RMB100 million) 8 Engineering General Contracting for Second Bidding Section of the Xiong’an Qingteng Town Project in the Start-up Area (ڡ ̍ΥΝ ) 11.9 9 Qianjian Guoke Innovative Medical Devices Industrial Base Project, Shanghai (௴อᔼᐕኜପุਿήධͦ ) 9.9 10 Construction General Contracting Works for Plot No.2, Phase III under Zitong Palace Station TOD Comprehensive Development Project, Chengdu (१ TOD ၝΥක೯ධͦɧಂ 2݄ ݬ) 8.2 Overseas Projects 1 Steel Structure Subcontract Project for the Electric Vehicle Supplier Park (ASP) in Saudi Arabia ( ӍतཥਗӛԓԶᏐਠਜ (ASP) ፻ഐ ʱ̍ධͦ ) 11.4 2 China-aid Malawi Judicial Complex Project (ၝΥධ ͦ ) 4.6 3 General Construction Works (Section 2) for Painting and Welding Workshops of Chery Malaysia CKD Factory, 2025 (2025 ϋփ৵Ը Гԭ CKDݬ)) 3.5 4 Wet-process Lithium Battery Separator (Phase I) Project at Indonesia IPM ( Ι̵ IPMཥϫཞᕎᇫɓಂධͦ ) 3.2
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– 20 – (3) Featured Business The Company keeps targeting differentiated tracks and vigorously fosters the competitive strengths of the five featured business segments, namely engineering services, new-type materials, high-end equipment, energy and environmental protection, and digital-intelligent application, so as to drive the optimisation and upgrading of business structure. During the Reporting Period, the five featured businesses steadily expanded market reach with a further increase in the proportion of high-value-added projects. Each business segment leverages industrial chain synergy advantages to deliver integrated comprehensive solutions for sectors including steel, non-ferrous metals and new energy, continuously builds up technological barriers, hedges against cyclical fluctuations in traditional construction businesses, consistently strengthens core competitiveness in niche segments and improves profitability. During the Reporting Period, the Company further deepened and materialised AI-digital-intelligent integration, promoted and implemented the Work Plan for the Special Action on Production-line Digital-Intelligent Upgrade of MCC ( ʕʕз ପ 㝬ᅰ౽ʷʺਖ਼ධБਗʈЪ˙ ), and provided technical support for the intelligent, green and integrated development of metallurgical and mining enterprises. The intelligent factory project of Minmetals Copper built by the Company was officially put into operation. Integrating remote operation, intelligent analysis and scheduling, and AI-assisted decision-making, the project covers multiple self-developed technologies; the coke oven lining workstation and construction method based on articulated robots, developed by the Company, have been successfully implemented in a coal coking project, significantly enhancing the level of intelligent construction. As at the end of the Reporting Period, the newly-signed contract value of the Company’s featured businesses amounted to RMB47.71 billion. Featured business generated operating revenue of RMB20.02 billion, accounting for 11.3% of total operating revenue, representing an increase of 2.1 percentage points compared with the previous year. Of which, revenue from the digita l-intelligent application business stood at RMB500 million, representing a year-on-year increase of 17.1%; whilst revenue from the supervision services segment within engineering services stood at RMB900 million, representing a year-on-year increase of 16.5%.
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– 21 – The operating revenues of each segment for the featured business of the Company and the proportion accounting for the total income of featured business are as follows: Unit: RMB’000 Items of revenue January – June 2026 January – June 2025 Amount Proportion Amount Proportion % % Engineering services 5,252,608 26.24 5,424,584 24.47 New materials 742,579 3.71 845,540 3.81 High-end equipment 4,802,227 23.99 5,514,571 24.88 Energy and environmental protection 8,722,640 43.57 9,954,931 44.91 Digital and intelligent applications 499,685 2.49 426,867 1.93 During the Reporting Period, the featured business projects tendered and entered into by the Company are as follows: No. Name of Project (Contract) Contract Amount (RMB100 million) 1 Integrated Project of Vanadium-Titanium Energy Storage New Materials and Energy Storage Batteries (Phase I) in Chifeng, Inner Mongolia (ʿᎷঐཥ ϫɓʷධͦ ɓಂ )) 18.0 2 245 MW Wind Power Project, Weixian, Hebei (ጤ 245MWཥධͦ ) 9.2 3 Comprehensive Water Environment Treatment Project, Xiaoxian, Suzhou (ଣʈ ) 8.0 4 Supervision Contract for the National Medical Centre, Fangshan Branch of Xuanwu Hospital, Capital Medical University (ே ᔼኪʕː္ଣΥΝ ) 0.2 5 Whole-process Consultancy Service Contract for Clusters 1, 2, 3, and 4 of the Wisdom Valley Campus, Chongqing University (ࠠ ਜɓଡ଼ྠ e ɚଡ଼ྠ e ɧଡ଼ྠ e ̬ଡ଼ྠධ ਕΥΝ ) 0.2 6 Acceptance Contract for Quality Consistency of Chemica l-protection Products (᜕ϗ ΥΝ ) 0.1
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– 22 – Significant changes in the operations of the Company, and matters occurring during the Reporting Period that have a significant impact on the operations of the Company and are expected to have a significant impact in the future Applicable ✔ Not applicable III. FINANCIAL HIGHLIGHTS 1. Overview The Company’s financial position as at 30 June 2026 and its operating results for the six months ended 30 June 2026 were as follows: • Operating revenue amounted to RMB175.907 billion, representing a decrease of RMB61.626 billion (or 25.94%) from RMB237.533 billion in the first half of 2025. • Total profit amounted to RMB4.019 billion, representing a decrease of RMB1.260 billion (or 23.86%) from RMB5.279 billion in the first half of 2025. • Net profit amounted to RMB3.077 billion, representing a decrease of RMB0.996 billion (or 24.45%) from RMB4.073 billion in the first half of 2025. • Net profit attributable to Shareholders of the listed company amounted to RMB2.326 billion, representing a decrease of RMB0.773 billion (or 24.95%) from RMB3.099 billion in the first half of 2025. • Basic earnings per Share amounted to RMB0.05, compared to RMB0.09 in the first half of 2025. • Total assets as at 30 June 2026 amounted to RMB806.794 billion, representing a decrease of RMB32.695 billion (or 3.89%) from RMB839.489 billion as at the end of 2025. • Shareholders’ equity as at 30 June 2026 amounted to RMB184.872 billion, representing an increase of RMB1.313 billion (or 0.72%) from RMB183.559 billion as at the end of 2025. • Value of newly-signed contracts amounted to RMB413.637 billion, representing a decrease of RMB134.565 billion (or 24.55%) from RMB548.202 billion in the first half of 2025. Note: The percentages of increase or decrease are calculated based on the figures denominated in RMB.
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– 23 – 2. Operating Revenue from Principal Business Segments During the Reporting Period, operating revenue from the principal business segments of the Company was as follows: (1) Core Business Operating revenue amounted to RMB37.800 billion, representing a decrease of RMB2.034 billion (or 5.11%) from RMB39.834 billion in the first half of 2025. (2) Main Business Operating revenue amounted to RMB119.077 billion, representing a decrease of RMB49.123 billion (or 29.20%) from RMB168.200 billion in the first half of 2025. (3) Featured Business Operating revenue amounted to RMB20.020 billion, representing a decrease of RMB2.146 billion (or 9.68%) from RMB22.166 billion in the first half of 2025. Note: All statistics of segment operating revenue above are figures before inter-segment elimination. The percentages of increase or decrease are calculated based on the figures denominated in RMB. IV. POSSIBLE RISKS AND MEASURES ADOPTED BY THE COMPANY (I) Possible Risks and Measures Adopted by the Company 1. Risks Associated with Macro-economy The global economy is expected to continue a moderate growth trajectory, though there are many uncertainties. Domestically, the long-term favorable conditions and fundamental trends, such as a solid economic foundation, numerous strengths, strong resilience, and significant potential, remain unchanged. The Company will continue to adhere to the general working principle of seeking progress while maintaining stability, closely focus on the business system of “One Core, Two Main Bodies and Five Features (ːՇ˴ʞतЍ )”, closely monitor and conduct in-depth analysis of macro-economic policies and industry development trends, prudently assess and proactively respond to internal and external risks, and counter the uncertainties stemming from changes in the external environment with the certainty of high-quality development.
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– 24 – 2. Risks Associated with Market Competitiveness The construction industry has bid farewell to the incremental dividends brought by the real-estate sector. The market focus has shifted to urban renewal, the development of the “Six Networks Construction” and overseas expansion. The industry has transitioned from scale-driven expansion to a new stage featuring risk control as well as quality and efficiency improvement, placing higher requirements on construction enterprises to enhance their core competitiveness. In response to the new landscape of industry transformation and upgrading, the Company will prioritize specialized, refined, digital, and green development, continue to optimize the “One Core, Two Main Bodies and Five Features (ːՇ˴ʞतЍ )” business system, enhance the capabilities for differentiated development and comprehensive services, and build sustainable core competitiveness. 3. Risks Associated with International Operations The Company has business footprints across multiple countries and regions. Its business activities are subject to the combined impacts of multiple external factors including regional political situations, economic environments, social structures, legal systems, religions and cultures. Against the backdrop of intensifying geopolitical conflicts globally, tightening global complianc e-supervision standards and deteriorating security situations in some regions, the Company may face greater difficulties in securing overseas project contracts, narrower profit margins, as well as delays in construction schedules, cost overruns and impeded capital recovery for ongoing projects. These may ultimately weigh on the revenue and profit levels of the Company’s overseas businesses. To effectively mitigate the aforesaid risks, on the one hand, the Company will optimise the top-level design for its overseas businesses. It will consolidate the operational foundation of overseas businesses by improving the internal control and management mechanisms for overseas operations, optimising overseas deployment, enhancing the support system for overseas-based personnel, and advancing the in-depth localised operation of overseas institutions. On the other hand, the Company will strengthen risk management for overseas businesses. It will formulate special response guidelines covering core risks such as the safety of overseas-based personnel, compliance-driven operations and public-sentiment incident response. The Company will prioritise projects with favourable contractual terms, strengthen full-cycle dynamic supervision over ongoing projects, and continuously review and summarise experience gained from international operations, so as to strive to reduce the risk exposure of its international businesses.
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– 25 – 4. Environmental and Safety Production Risks As a construction and production-oriented enterprise, the Company owns subsidiaries and projects in progress which are widely dispersed, bringing considerable challenges to ecological and environmental management. During construction and production activities, factors including unsafe human behaviours, potential hazards of equipment and facilities, on-site environmental risks and management oversights may trigger safety accidents, resulting in adverse impacts such as casualties, economic losses and damage to corporate reputation. To effectively prevent and defuse the aforesaid environmental and work-safety risks, the Company strictly complies with relevant national laws, regulations and industry standards, fully implements the primary responsibilities for work safety and environmental protection, continuously improves the institutional system for energy conservation and environmental protection, strengthens daily supervision and control, and proactively implements various pollution-prevention measures. Meanwhile, the Company will continuously raise the risk-prevention awareness of all employees, further optimise the safety-management system, enforce the responsibility for on-site inspections by leading management personnel, deepen the identification and rectification of potential safety hazards, rigorously regulate the whole-process safety control over subcontracting teams, and strictly implement accident accountability mechanisms. The Company will make every effort to prevent and resolutely curb the occurrence of major-level and above safety accidents. 5. Data Fraud or Theft Risks To strictly safeguard state secrets, protect commercial secrets, and consolidate the defence line for national security and corporate operational security, the Company has established a relatively complete confidentiality-management system and institutional framework. The Company conducts regular confidentiality publicity and education in various forms to continuously strengthen employees’ awareness of confidentiality obligations. Comprehensive inspections and special supervisory audits are organised every year to examine the confidentiality work of subsidiaries. By means of interviews, review of institutional documents and on-site verification, the Company comprehensively inspects the operation of the confidentiality-management system of subsidiaries and promptly pushes forward rectification and implementation for identified issues. The Company uniformly deploys domestic-manufactured classified computers, continuously updates security protection systems, and adopts dedicate d-p erson ful l-time management. It strictly enforces the requirement that “classified information shall not be accessed via internet-connected devices and internet-connected devices shall not process classified information”, and prohibits the transmission, storage and processing of classified information via the internet. During the Reporting Period, the Company experienced no incidents of data fraud or theft.
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– 26 – 6. Cyber Risk and Security To effectively prevent and control cybersecurity risks, the Company has established a cybersecurity management system and emergency response plans in accordance with relevant national cybersecurity laws, regulations, and institutional requirements, and continuously promotes the optimization and upgrading of its cybersecurity protection system. The Company implements data classification and grading protection, strengthens the security of core systems; conducts 24/7 cybersecurity monitoring and threat warning, performs routine vulnerability scanning and remediation, and regularly carries out inspections and emergency drills; strengthens cybersecurity management for suppliers and partner enterprises to control supply chain risks; enhances the cybersecurity awareness of all employees through cybersecurity publicity and training. Simultaneously, the Company will explore new risk mitigation mechanisms, promote the intelligentization of cybersecurity operations, and make every effort to ensure the smooth and secure operation of the Company’s network. V. MANAGEMENT DISCUSSION AND ANALYSIS (I) Analysis on Major Operating Business 1. Analysis on the Changes in the Relevant Items in Financial Statements Unit: RMB’000 Items Amount for the current year Amount for the prior year Change in proportion (%) Operating revenue 175,906,562 237,532,712 -25.94 Operating costs 158,664,357 213,563,935 -25.71 Selling expenses 1,101,224 1,304,083 -15.56 Administrative expenses 4,781,975 5,332,722 -10.33 Financial expenses 629,360 753,800 -16.51 Research and development expenses 4,703,901 6,734,970 -30.16 Net cash flow generated from operating activities (22,800,957) (21,984,978) Not applicable Net cash flow generated from investing activities 22,516,273 (604,529) Not applicable Net cash flow generated from financing activities (9,819,321) 24,740,292 -139.69
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– 27 – Explanation of the reasons for the change in operating income: Mainly due to the Company’s proactive optimization of project structure, refocus on its core business and concentration on profitable and cash flow-generating operations. Explanation of the reasons for the change in operating cost: Mainly due to the Company’s alignment with project structure adjustment and operational efficiency optimization, as well as the strengthened cost control measures. Explanation of the reasons for the change in selling expenses: Mainly due to the decrease in selling expenses, including sales service fees and business development expenses. Explanation of the reasons for the change in administrative expenses: Mainly due to the disposal of relevant subsidiaries at the end of 2025 and the decrease in administrative expenses such as travel and office expenses. Explanation of the reasons for the change in financial expenses: Mainly due to the disposal of relevant subsidiaries at the end of 2025 and the decrease in financial expenses resulting from the decrease in interest-bearing debt. Explanation of the reasons for the change in research and development expenses: Mainly due to the decrease in R&D investment during the year. Explanation of the reasons for the change in net cash flow generated from operating activities: Remained broadly flat compared with the previous year. Explanation of the reasons for the change in net cash flow generated from investing activities: Mainly due to the receipt of proceeds from the disposal of relevant entities at the end of 2025 during the first half of the year. Explanation of the reasons for the change in net cash flow generated from financing activities: Mainly due to the recovery of significant funds, resulting in reduced financing needs, together with the repayment of a portion of interest-bearing debt.
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– 28 – 2. Analysis on revenue and costs (1) Major business by segment and region Unit: RMB’000 Major Business by Segment Segments Operating revenue Operating costs Gross margin Increase or decrease in the operating revenue as compared to last year Increase or decrease in the operating costs as compared to last year Increase or decrease in the gross profit margin as compared to last year (%) (%) (%) (%) Core business 37,800,144 34,521,020 8.67 -5.11 -4.08 Decreased by 0.98 percentage point Main business 119,077,003 107,877,373 9.41 -29.20 -29.26 Increased by 0.08 percentage point Featured business 20,019,739 17,187,040 14.15 -9.68 -8.66 Decreased by 0.96 percentage point Major Business by Region Regions Operating revenue Operating costs Gross margin Increase or decrease in the operating revenue as compared to last year Increase or decrease in the operating costs as compared to last year Increase or decrease in the gross profit margin as compared to last year (%) (%) (%) (%) PRC 159,332,161 143,841,707 9.72 -28.57 -28.50 -0.09 Other countries/regions 16,574,401 14,822,650 10.57 14.46 19.69 -3.91 Note: The segment revenue and cost are data without offsetting inter-segment transactions.
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– 29 – Ǻ Core business Core business includes metallurgical construction business and mining engineering business. The gross profit margins of the core business in the first half of 2026 and 2025 were 8.67% and 9.65%, respectively, with a year-on-year decrease of 0.98 percentage points. ǻ Main business Main business includes industrial construction and infrastructure construction. Among these, infrastructure construction business is the Company’s traditional main business, while industrial construction business is the Company’s important business. Main business is mainly carried out by way of EPC contract and general financing and construction contracting contract, and is currently the major source of income and profits of the Company. The gross profit margins of the main business in the first half of 2026 and 2025 were 9.41% and 9.33%, respectively, with a year-on-year increase of 0.08 percentage points. Ǽ Featured business Featured business includes engineering services business, new materials business, high-end equipment business, energy and environmental protection business and digital and intelligent applications business. The overall gross profit margins of the featured business in the first half of 2026 and 2025 were 14.15% and 15.11%, respectively, with a year-on-year decrease of 0.96 percentage points.
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– 30 – (2) Costs analysis Unit: RMB’000 Segment Costs component items Amount for the current period Proportion of the amount for the current period to the total costs Amount for the same period in the previous year Proportion of the amount for the same period in the previous year to the total cost Percentage change in the amount for the current period as compared to that for same period in the previous year (%) (%) (%) Core business Operating costs 34,521,020 21.63 35,991,116 16.69 -4.08 Main business Operating costs 107,877,373 67.60 152,502,372 70.70 -29.26 Featured business Operating costs 17,187,040 10.77 18,817,443 8.72 -8.66 Note: The segment cost are data without offsetting inter-segment transactions. The major components of costs of main business of the Company were as follows: Unit: RMB’000 Items of costs January – June 2026 January – June 2025 Amount Proportion Amount Proportion (%) (%) Subcontracting expenses 64,712,414 59.99 93,734,862 61.46 Materials expenses 27,537,448 25.53 39,358,197 25.81 Labour costs 6,102,320 5.66 7,513,466 4.93 Machinery usage fees 2,396,582 2.22 2,986,763 1.96 Others 7,128,609 6.60 8,909,084 5.84 Total engineering cost 107,877,373 100.00 152,502,372 100.00 The major components of costs of construction projects of the Company are subcontracting expenses, materials expenses, labour costs and machinery usage fees. The proportion of each component of costs to operating costs is relatively stable.
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– 31 – (3) Information on major customers and major suppliers The sales of top five customers amounted to RMB16,315,971 thousand, accounting for 9.28% of the total sales during the Reporting Period; among them, related-party sales included in the sales of the top five customers amounted to RMB2,165,334 thousand, accounting for 1.23% of the total sales during the Reporting Period. Unit: RMB’000 Customer’s name Operating revenue Proportion of the total operating revenue (%) China Baowu Steel Group Corporation Limited (ʮ̡ ) 9,663,775 5.49 China Minmetals Corporation (ʮ̡ ) 2,165,334 1.23 HBIS Group Co., Ltd. (ʮ̡ ) 1,551,108 0.88 Yunnan Yuxi Yukun Iron and Steel Group Co., Ltd. (፻᚛ණྠϞ ʮ̡ ) 1,526,519 0.87 PT.FENIHALTIM 1,409,235 0.81 Total 16,315,971 9.28 The procurement of top five suppliers amounted to RMB5,901,243 thousand, accounting for 3.73% of the total procurement during the Reporting Period; of which, the procurement from related parties under the procurement of top five suppliers amounted to RMB2,580,876 thousand, accounting for 1.63% of the total procurement during the Reporting Period.
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– 32 – Unit: RMB’000 Supplier’s name Procurement volume in current period Proportion of the total operating costs (%) China Minmetals Corporation ( ʕʞᘤණ ʮ̡ ) 2,580,876 1.63 Contemporary Brunp Lygend Co., Ltd. (ت ʮ̡ ) 1,129,058 0.71 Anhui Hongxiang Building Materials Co., Ltd. (ʮ̡ ) 851,145 0.54 China Baowu Steel Group Corporation ( ʕ ʮ̡ ) 741,984 0.47 Guangdong Construction Engineering Group Co., Ltd.΅ ʮ̡ 598,180 0.38 Total 5,901,243 3.73 3. Analysis on expenses 1) Selling expenses The Company’s selling expenses mainly include employees compensation costs, travelling expenses and sale services expenses. In the first half of 2026 and 2025, the Company’s selling expenses were RMB1,101,224 thousand and RMB1,304,083 thousand, respectively, representing a year-on-year decrease of 15.56%, which was mainly attributable to the decrease in the Company’s selling expenses, such as selling service fees and business development fees. (2) Administrative expenses The Company’s administrative expenses mainly include employee compensation costs, depreciation expenses and domestic travelling expenses. In the first half of 2026 and 2025, the Company’s administrative expenses were RMB4,781,975 thousand and RMB5,332,722 thousand, respectively, representing a year-on-year decrease of 10.33%, which was mainly attributable to the decrease in administration expenses such as labour costs and lease expenses.
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– 33 – (3) Financial expenses The Company’s financial expenses include costs of borrowing, exchange gains or losses, and bank charges incurred in the course of business. In the first half of 2026 and 2025, the Company’s financial expenses were RMB629,360 thousand and RMB753,800 thousand, respectively, representing a yea r-on-year decrease of 16.51%, which was mainly attributable to the year-on-year decrease in interest expenses. (4) Research and development expenses The Company’s research and development expenses include personnel labour costs, direct input costs, depreciation expenses and equipment commissioning expenses and experimentation expenses. In the first half of 2026 and 2025, the Company’s research and development expenses were RMB4,703,901 thousand and RMB6,734,970 thousand respectively, representing a year-on-year decrease of 30.16%, which was mainly attributable to the decrease in R&D inputs in the current year. 4. Research and development expenditure Unit: RMB’000 Expensed research and development expenditure for the current period 4,703,901 Capitalized research and development expenditure for the current period – Total research and development expenditure 4,703,901 Proportion of total research and development expenditure to operating revenue (%) 2.67 Proportion of capitalized research and development expenditure (%) –
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– 34 – 5. Cash Flow The cash flows of the Company are as follows: Unit: RMB’000 Item January – June 2026 January – June 2025 Net cash flow from operating activities 22,800,957 21,984,978 Net cash flow from investing activities 22,516,273 604,529 Net cash flow from financing activities 9,819,321 24,740,292 (1) Operating activities In the first half of 2026 and 2025, the Company’s net cash flow generated from operating activities amounted to RMB-22,800,957 thousand and RM B-21,984,978 thousand, respectively. From January to June 2026 and 2025, the cash inflows generated from operating activities mainly arise from the cash received from the sale of goods and the rendering of services, accounting for 95.88% and 96.58%, respectively with respect to the cash inflow generated from operating activities. The Company’s cash outflows generated from operating activities mainly consisted of cash payments for goods purchased and services received, cash payments to and on behalf of employees and payments of various types of taxes. In the first half of 2026 and 2025, such cash outflow accounted for 88.65%, 6.39%, 2.26% and 86.64%, 6.12%, 3.25%, respectively with respect to the cash outflow generated from operating activities.
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– 35 – (2) Investing activities In the first half of 2026 and 2025, the Company’s net cash flow generated from investing activities amounted to RMB22,516,273 thousand and RMB-604,529 thousand. The cash inflows generated from investing activities of the Company were mainly derived from cash received from the disposal of subsidiaries and other business organisations, as well as cash received from the disposal of fixed assets, intangible assets and other long-term assets, which accounted for 97.21%, 0.62% and 3.00%, 2.26% of the cash inflow generated from investing activities in the first half of 2026 and 2025, respectively. The Company’s cash outflows mainly included cash payments to acquire or construct fixed assets, intangible assets and other long-term assets, as well as cash paid for investment. In the first half of 2026 and 2025, such cash outflow accounted for 47.37%, 38.05% and 35.82%, 62.65%, respectively with respect to the cash outflow generated from investing activities. (3) Financing activities In the first half of 2026 and 2025, the Company’s net cash flow generated from financing activities amounted to RMB-9,819,321 thousand and RMB24,740,292 thousand, respectively. The Company’s cash inflow from financing activities mainly consisted of cash receipts from borrowings which accounted for 98.26% and 86.21% of the cash inflow generated from financing activities for the first half of 2026 and 2025, respectively. The Company’s cash outflow from financing activities mainly consisted of cash repayments of borrowings. In the first half of 2026 and 2025, such cash outflow accounted for 76.78% and 79.07%, respectively with respect to the cash outflow generated from financing activities. (II) Explanation of Significant Profit Changes Due to Non-core Business Applicable ✔ Not applicable
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– 36 – (III) Analysis on Assets and Liabilities 1. Status of Assets and Liabilities Unit: RMB’000 Items Amount at the end of the current period Percentage of total assets at the end of the current period Amount at the end of the period of previous year Percentage of total assets at the end of the period of previous year Proportion change in the amount at the end of the current period as compared to that at the end of the period of previous year (%) (%) (%) Current assets 606,345,022 75.15 639,634,797 76.19 -5.20 Cash and bank balances 68,081,477 8.44 77,764,883 9.26 -12.45 Accounts receivable 238,598,546 29.57 243,437,020 29.00 -1.99 Inventories 16,275,106 2.02 15,687,453 1.87 3.75 Contract assets 201,261,931 24.95 189,499,733 22.57 6.21 Non-current assets 200,449,329 24.85 199,853,885 23.81 0.30 Intangible assets 27,664,510 3.43 26,597,565 3.17 4.01 Total assets 806,794,351 100.00 839,488,682 100.00 -3.89 Current liabilities 568,030,281 91.33 606,414,578 92.45 -6.33 Short-term borrowings 20,476,444 3.29 22,127,213 3.37 -7.46 Bills payable 26,470,793 4.26 25,608,315 3.90 3.37 Accounts payable 376,271,683 60.50 396,600,873 60.46 -5.13 Contract liabilities 51,101,691 8.22 56,137,036 8.56 -8.97 Non-current liabilities 53,892,057 8.67 49,514,666 7.55 8.84 Long-term borrowings 45,993,649 7.40 41,446,692 6.32 10.97 Total liabilities 621,922,338 100.00 655,929,244 100.00 -5.18
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– 37 – (1) Analysis on the structure of assets Cash and bank balances As at 30 June 2026 and 31 December 2025, the balances of cash and bank balances of the Company were RMB68,081,477 thousand and RMB77,764,883 thousand, respectively, representing a decrease of 12.45% as compared with the beginning of the year. As at 30 June 2026 and 31 December 2025, the restricted cash and bank balances of the Company were RMB8,885,857 thousand and RMB8,278,623 thousand, respectively, which accounted for 13.05% and 10.65% of the cash and bank balances, respectively. The restricted cash and bank balances mainly included bank deposits for issuing acceptance bills, guarantee deposits, frozen funds for lawsuit, project supervision funds and wage deposits for rural migrant workers, etc. Accounts receivable As at 30 June 2026 and 31 December 2025, the carrying value of the Company’s accounts receivable was RMB238,598,546 thousand and RMB243,437,020 thousand, respectively, representing a decrease of 1.99% as compared with the beginning of the year, which was mainly due to a decrease in accounts receivable related to engineering contracting services. Inventories The inventories of the Company mainly consisted of properties under development, completed properties held for sale, raw materials, work in process and finished goods, etc. The inventory structure of the Company reflected the characteristics of the metallurgical construction, capital construction and featured business in which the Company was engaged. As at 30 June 2026 and 31 December 2025, the Company’s net inventories were RMB16,275,106 thousand and RMB15,687,453 thousand, respectively, representing an increase of 3.75% as compared with the beginning of the year.
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– 38 – Contract assets Contract assets of the Company are mainly completed and unsettled inventories and construction quality guarantee deposits with regard to the engineering contracting service contracts. As at 30 June 2026 and 31 December 2025, the net contract assets of the Company amounted to RMB201,261,931 thousand and RMB189,499,733 thousand, respectively, representing an increase of 6.21% as compared with the beginning of the year, which was mainly due to an increase in contract assets related to engineering contracting services. Intangible assets As at 30 June 2026 and 31 December 2025, the aggregated carrying value of the Company’s intangible assets was RMB27,664,510 thousand and RMB26,597,565 thousand, respectively, representing an increase of 4.01% as compared with the beginning of the year. The Company’s intangible assets mainly included land use rights, franchise right, patent and proprietary technology, as well as mining rights etc. (2) Analysis on the structure of liabilities Long-term and short-term borrowings Long-term and short-term borrowings of the Company mainly consisted of credit loans, pledge loans and guaranteed loans from commercial banks and other financial organizations. As at 30 June 2026 and 31 December 2025, the carrying value of the Company’s short-term borrowings was RMB20,476,444 thousand and RMB22,127,213 thousand, respectively, representing a decrease of 7.46% as compared with the beginning of the year. As at 30 June 2026 and 31 December 2025, the carrying value of the Company’s long-term borrowings was RMB45,993,649 thousand and RMB41,446,692 thousand, respectively, representing an increase of 10.97% as compared with the beginning of the year. During the Reporting Period, the short-term borrowings and long-term borrowings repaid by the Company amounted to RMB23,026,899 thousand and RMB10,805,832 thousand, respectively. As at the end of the Reporting Period, the balances of fixed-rate short-term borrowings and fixed-rate long-term borrowings amounted to RMB17,571,567 thousand and RMB14,875,723 thousand, respectively.
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– 39 – Accounts payable Accounts payable mainly consisted of material costs payable to suppliers and engineering costs payable to subcontractors by the Company. As at 30 June 2026 and 31 December 2025, the Company’s carrying value of accounts payable was RMB376,271,683 thousand and RMB396,600,873 thousand, respectively, representing a decrease of 5.13% as compared with the beginning of the year. Contract liabilities Contract liabilities mainly consisted of contract liabilities related to engineering contracting services and sales contracts. As at 30 June 2026 and 31 December 2025, the Company’s carrying value of contract liabilities amounted to RMB51,101,691 thousand and RMB56,137,036 thousand, respectively, representing a decrease of 8.97% as compared with the beginning of the year. 2. Status of Overseas Assets Overseas assets were RMB25,227,327 thousand, accounting for 3.13% of total assets.
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– 40 – (IV) Investment Analysis 1. Overall Analysis on External Equity Investments As at 30 June 2026 and 31 December 2025, the net assets of the Company’s trading financial assets were RMB1,754 thousand and RMB2,030 thousand, respectively, representing a decrease of 13.56% compared to the beginning of the year. As at 30 June 2026 and 31 December 2025, the net long-term equity investments of the Company were RMB41,323,023 thousand and RMB40,731,505 thousand, respectively, representing an increase of 1.45% compared to the beginning of the year. As at 30 June 2026 and 31 December 2025, the net investment in other equity instruments of the Company amounted to RMB1,540,953 thousand and RMB1,789,413 thousand, respectively, representing a decrease of 13.89% as compared to the beginning of the year. As at 30 June 2026 and 31 December 2025, the Company’s other net investment in non-current financial assets amounted to RMB4,367,271 thousand and RMB4,373,896 thousand, respectively, representing a decrease of 0.15% as compared with the beginning of the year. 2. Significant Equity Investments Applicable ✔ Not applicable 3. Significant Non-equity Investments Applicable ✔ Not applicable
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– 41 – 4. Financial Assets Measured at Fair Value Securities investments Unit: RMB’000 Stock variety Stock code Stock abbreviation Initial investment amount Carrying amount at the beginning of the period Profit or loss arising from changes in fair value for the current period Cumulative fair value change included in equity Amount of new purchase for the current period Amount of disposal for the current period Investment profit or loss for the current period Carrying amount at the end of the period Account category Shares 601005 Chongqing Iron and Steel (ᅅ፻᚛ ) 185 126 -27 – – – – 99 Financial assets held for trading Shares 600515 Hainan Airport (ዚఙ ) 264 444 -216 – – – – 228 Financial assets held for trading Shares 600221 Hainan Airlines Holding (ٰ) 206 200 -32 – – – – 168 Financial assets held for trading Shares 000709 Hesteel (΅ ) 4,600 4,382 – -702 – – – 3,680 Investments in other equity instruments Shares 601328 Bank of Communications ( ʹஷვБ ) 86,192 301,618 – -33,743 – – – 267,875 Investments in other equity instruments Shares 000939 Kaidi Ecological (͛࿒ ) 2,502 – – – – – – – Investments in other equity instruments Shares 000005 Fountain (๕ ) 420 75 – -15 – – – 60 Investments in other equity instruments Shares 600665 Tande ( ˂ή๕ ) 1,122 520 – -62 – – – 458 Investments in other equity instruments Shares 601005 Chongqing Iron and Steel (ᅅ፻᚛ ) 171,568 70,494 -14,485 – 56,009 Investments in other equity instruments
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– 42 – Derivative investments (1) Derivative Investments for Hedging Purposes during the Reporting Period On 29 June 2026, the 2025 annual general meeting of the Company considered and approved the proposal in relation to the financial derivatives business plan of MCC for the year 2026. It approved that the total volume of financial derivatives business to be carried out by MCC in 2026 shall not exceed USD2.062 billion (including the equivalent amount in foreign currency), with a validity period of no more than 12 months from the date of approval by the Shareholders’ meeting of the Company. (For details, please refer to the relevant announcements disclosed by the Company on 30 March 2026 and 29 June 2026). The Company’s financial derivatives business in 2026 is not subject to hedge accounting. For details of risk management, please refer to the table below: Accounting policies and specific principles of accounting for hedging operations during the Reporting Period, as well as an explanation of whether there have been any significant changes compared with the previous Reporting Period No significant changes have occurred. Explanation of actual gain or loss during the Reporting Period The Company conducts foreign exchange forward and currency swap businesses strictly in accordance with the hedging principle. The scale of foreign exchange hedging is determined based on the actual demand for foreign exchange-denominated businesses. Gains and losses arising from foreign exchange hedging transactions are offset against changes in the value of their corresponding assets. Explanation of hedging effect The Company’s foreign exchange derivatives business is in line with the needs of the daily operations of the Company, which enables the Company to effectively avoid exchange rate risks and reduce the possible adverse impact of exchange rate fluctuations on the Company. Sources of funds for derivative investments Contractual receipts and payments of foreign exchange and foreign currency funds on hand arising from normal production and operation.
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– 43 – Risk analysis and description of control measures for derivative positions during the Reporting Period (including but not limited to market risk, liquidity risk, credit risk, operational risk, legal risk, and others) (I) Transaction Risk Analysis 1. Market risk: due to the unpredictability of changes at home and abroad in the economic environment, there is a possibility of loss in the valuation of the foreign exchange hedging business during the survival period, and the trading profit and loss at the time of maturity or selective delivery. 2. Liquidity risk: unreasonable arrangement of the foreign exchange hedging business triggers the liquidity risk of the Company’s funds at the time of maturity and delivery. 3. Performance risk: the choice from the counterparty is unreasonable, and the counterparty is unable to pay corresponding amount as agreed upon at the time of the maturity and delivery of foreign exchange hedging business. 4. Internal control risk: foreign exchange hedging business is relatively professional and sophisticated, which may result in loss in the process of foreign exchange funds due to operational errors, systems and other reasons. 5. Compliance risk: subject to regulatory penalties, economic losses and negative impact on the Company’s reputation for its failure to comply with policies, regulations and company systems.
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– 44 – (II) Risk Control Measures 1. For market risk, the Company intends to take the following measures: First, the foreign exchange hedging business to be undertaken by the Company are all foreign exchange forwards, simple exchange rate options, interest rate swaps and currency swaps products conducted for the purpose of hedging which are closely related to the actual business, and do not involve speculative arbitrage. Transaction gains and losses are also hedged against changes in the value of their corresponding risk assets; secondly, we strengthened research and analysis of exchange rates, paid attention to changes in the market environment both at home and abroad, and adjusted our operating strategies in a timely manner in conjunction with changes in the market; thirdly, following the signing of the foreign exchange contract, we followed up on the market in a timely manner for dynamic management, and set up a risk early warning line based on the transaction program. We regularly check the transaction situation with all counterparties, analyze and assess the possible risks and take prompt countermeasures. 2. For liquidity risk, the Company intends to take the following measures: First, the foreign exchange hedging business to be undertaken by the Company are based on the actual business, matching with the actual foreign exchange income and expenditure, and at the time of decision-making, the Company has reasonably planned the capital plan to ensure sufficient funds to be held at the time of delivery; secondly, the Company will select the difference in delivery at the appropriate time based on the type of products and market trends, so as to successfully satisfy the demand for funds for delivery; thirdly, the Company will reinforce its efforts in collection of the project, so as to ensure the return of the funds.
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– 45 – 3. For the performance risk, the Company intends to take the following measures: first, the counterparties of the foreign exchange hedging business to be undertaken by the Company are all financial institutions with good credit, solid capital and with whom the Company has established long-term business relations, so that the performance risk is low; second, the Company will closely follow up on the operation of the counterparties in the process of holding positions, and will take countermeasures promptly in the event of any significant risk events. 4. For the internal control risk, the Company intends to take the following measures: firstly, the Company will carry out the business in strict accordance with the annual plan of foreign exchange hedging, and the specific business shall be approved by the relevant authorized personnel of the Company before processing; secondly, the Company will clearly define the responsibilities and authority of the positions of foreign exchange hedging business, and ensure the separation, constraint and supervision of incompatible positions for foreign exchange hedging business; thirdly, the Company prohibits one person from processing the whole process of foreign exchange hedging business, while the personnel for processing the business shall have the corresponding business competence; fourthly, through the foreign exchange risk management auditing and supervisory system, the Company will carry out supervision and inspection of foreign exchange hedging business norms and the effectiveness of the internal control mechanism on a regular basis.
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– 46 – 5. For compliance risk, the Company intends to take the following measures: first, the Company concludes contracts with counterparties in compliance with the Civil Code of the People’s Republic of China and relevant laws and regulations; second, the legal compliance department shall conduct compliance audits of foreign exchange contracts; and third, third-party legal advisers or experts shall be consulted for the conclusion of major foreign exchange contracts. Changes in the market price or product fair value of invested derivatives during the Reporting Period, the analysis of the fair value of derivatives shall disclose the specific methods used and the setting of relevant assumptions and parameters The Company conducted foreign exchange forward and currency swap business with caution for the purpose of hedging, and the market price fluctuated according to the exchange rate of Renminbi against the U. S. dollar during the Reporting Period. Involvement in litigation (if applicable) Not applicable Date of disclosure of the announcement of the Board for approval of derivative investment (if any) 30 March 2026 Date of disclosure of the announcement of the Shareholders’ meeting for approval of derivative investment (if any) 29 June 2026 (2) Derivative Investments for Speculative Purposes during the Reporting Period Applicable ✔ Not applicable
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– 47 – VI. CONSOLIDATED AND THE COMPANY’S BALANCE SHEET CONSOLIDATED BALANCE SHEET 30 June 2026 RMB’000 Item 30 June 2026 31 December 2025 (unaudited) Current assets Cash and bank balances 68,081,477 77,764,883 Held-fo r-trading financial assets 1,754 2,030 Notes receivable 6,391,160 5,366,671 Accounts receivable 238,598,546 243,437,020 Receivables financing 8,958,368 9,066,234 Prepayments 17,803,087 19,028,155 Other receivables 30,479,421 59,373,440 Inventories 16,275,106 15,687,453 Contract assets 201,261,931 189,499,733 Non-current assets due within one year 10,408,286 11,483,026 Other current assets 8,085,886 8,926,152 Total Current Assets 606,345,022 639,634,797 Non-current assets Long-term receivables 50,410,017 51,689,756 Long-term equity investments 41,323,023 40,731,505 Investments in other equity instruments 1,540,953 1,789,413 Other non-current financial assets 4,367,271 4,373,896 Investment properties 7,155,764 7,304,471 Fixed assets 16,331,758 16,615,171 Construction in progress 4,664,180 4,747,680 Right-of-use assets 530,180 564,920 Intangible assets 27,664,510 26,597,565 Goodwill 47,361 47,361 Long-term prepaid expenses 328,407 342,458 Deferred tax assets 9,210,168 8,985,407 Other non-current assets 36,875,737 36,064,282 Total Non-current Assets 200,449,329 199,853,885 TOTAL ASSETS 806,794,351 839,488,682
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– 48 – CONSOLIDATED BALANCE SHEET (CONTINUED) 30 June 2026 RMB’000 Item 30 June 2026 31 December 2025 (unaudited) Current liabilities Short-term borrowings 20,476,444 22,127,213 Derivative financial liabilities – 648,732 Notes payable 26,470,793 25,608,315 Accounts payable 376,271,683 396,600,873 Receipts in advance 74,754 69,347 Contract liabilities 51,101,691 56,137,036 Employee benefits payable 2,489,875 3,161,987 Taxes payable 2,173,450 2,969,140 Other payables 46,134,514 50,256,178 Non-current liabilities due within one year 11,598,423 14,538,963 Other current liabilities 31,238,654 34,296,794 Total Current Liabilities 568,030,281 606,414,578 Non-current liabilities Long-term borrowings 45,993,649 41,446,692 Bonds payable 2,000,000 2,000,000 Lease liabilities 379,206 410,397 Long-term payables 910,583 992,278 Long-term employee benefits payable 2,435,994 2,475,555 Provisions 510,886 566,712 Deferred income 782,960 738,992 Deferred tax liabilities 114,775 120,036 Other non-current liabilities 764,004 764,004 Total Non-current Liabilities 53,892,057 49,514,666 TOTAL LIABILITIES 621,922,338 655,929,244
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– 49 – Item 30 June 2026 31 December 2025 (unaudited) Shareholders’ Equity Share capital 20,691,619 20,723,619 Other equity instruments 54,100,000 54,100,000 Including: Perpetual bonds 54,100,000 54,100,000 Capital reserve 23,556,988 23,549,164 Less: Treasury stock 259,442 – Other comprehensive income 501,353 629,544 Special reserve 2,059,370 1,688,552 Surplus reserve 3,782,468 3,782,468 Retained profits 52,247,440 51,289,390 Total equity attributable to shareholders of the Company 156,679,796 155,762,737 Minority interests 28,192,217 27,796,701 TOTAL SHAREHOLDERS’ EQUITY 184,872,013 183,559,438 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 806,794,351 839,488,682 This financial statement is signed by following persons: Legal Representative: Chief Financial Officer: Person in Charge of the Accounting Body: Li Zhongze Dong Su Li Yifeng CONSOLIDATED BALANCE SHEET (CONTINUED) 30 June 2026 RMB’000
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– 50 – THE COMPANY’S BALANCE SHEET 30 June 2026 RMB’000 Item 30 June 2026 31 December 2025 (unaudited) Current assets Cash and bank balances 14,837,415 23,238,794 Accounts receivable 130,560 316,430 Prepayments 1,002,297 971,823 Other receivables 66,028,798 62,784,328 Inventories 927 927 Contract assets 1,231,266 1,313,008 Other current assets 135 135 Total Current Assets 83,231,398 88,625,445 Non-current assets Long-term receivables 2,037 120,718 Long-term equity investments 86,536,062 78,020,481 Investments in other equity instruments 1,035 981 Fixed assets 17,205 19,091 Construction in progress 1,645 – Right-of-use assets 28,498 37,894 Intangible assets 41,649 41,302 Other non-current assets 612,586 610,358 Total Non-current Assets 87,240,717 78,850,825 TOTAL ASSETS 170,472,115 167,476,270
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– 51 – THE COMPANY’S BALANCE SHEET (CONTINUED) 30 June 2026 RMB’000 Items 30 June 2026 31 December 2025 (unaudited) Current liabilities Short-term borrowings – 1,011,347 Derivative financial liabilities – 648,732 Accounts payable 1,710,600 1,756,832 Contract liabilities 1,635,723 1,773,848 Employee benefits payable 19,939 20,816 Taxes payable 43,771 104,580 Other payables 44,179,853 42,848,842 Non-current liabilities due within one year 2,445,414 3,074,730 Total Current Liabilities 50,035,300 51,239,727 Non-current liabilities Long-term borrowings 439,080 439,080 Bonds payable 2,000,000 2,000,000 Lease liabilities 9,372 18,675 Long-term employee benefits payable 77,977 77,231 Provisions 62,805 62,805 Deferred income 3,598 3,598 Total Non-current Liabilities 2,592,832 2,601,389 TOTAL LIABILITIES 52,628,132 53,841,116
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– 52 – Items 30 June 2026 31 December 2025 (unaudited) SHAREHOLDERS’ EQUITY Share capital 20,691,619 20,723,619 Other equity instruments 54,100,000 54,100,000 Including: Perpetual bonds 54,100,000 54,100,000 Capital reserve 37,805,764 37,823,082 Less: Treasury stock 259,442 – Other comprehensive loss (25,223) (21,414) Special reserve 12,550 12,550 Surplus reserve 3,782,468 3,782,468 Retained profits/(Accumulated losses) 1,736,247 (2,785,151) TOTAL SHAREHOLDERS’ EQUITY 117,843,983 113,635,154 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 170,472,115 167,476,270 This financial statement is signed by following persons: Legal Representative: Chief Financial Officer: Person in Charge of the Accounting Body: Li Zhongze Dong Su Li Yifeng THE COMPANY’S BALANCE SHEET (CONTINUED) 30 June 2026 RMB’000
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– 53 – VII. CONSOLIDATED AND THE COMPANY’S INCOME STATEMENTS CONSOLIDATED INCOME STATEMENT For the six months period ended 30 June 2026 RMB’000 Item For the six months ended 30 June 2026 For the six months ended 30 June 2025 (unaudited) (unaudited) I. Total operating income 175,906,562 237,532,712 Including: Operating income 175,906,562 237,532,712 II. Total operating costs 170,576,892 228,566,665 Including: Operating costs 158,664,357 213,563,935 Taxes and levies 696,075 877,155 Selling expenses 1,101,224 1,304,083 Administrative expenses 4,781,975 5,332,722 Re search and development expenses 4,703,901 6,734,970 Financial expenses 629,360 753,800 Including: Interest expenses 1,119,247 1,435,030 Interest income 1,275,151 937,172 Add: Other income 200,829 239,657 Investment loss (226,169) (445,757) Including: Lo sses on investments in associates and joint ventures (36,374) (52,241) Lo sses arising from derecognition of financial assets at amortised cost (185,143) (256,644) Gains/(Losses) on changes in fair value 25,683 (44,681) Impairment losses of credit (926,006) (1,905,514) Impairment losses of assets (491,528) (1,700,083) Gains on disposal of assets 19,877 178,667
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– 54 – Item For the six months ended 30 June 2026 For the six months ended 30 June 2025 (unaudited) (unaudited) III. Operating profit 3,932,356 5,288,336 Add: Non-operating income 171,618 127,460 Less: Non-operating expenses 84,541 136,647 IV. Total profit 4,019,433 5,279,149 Less: Income tax expenses 942,221 1,206,157 V. Net profit 3,077,212 4,072,992 (I) Cl assified by the continuity of operation Net profit from continuing operations 3,077,212 5,282,984 Net loss from discontinued operations – (1,209,992) (II) Categorised by ownership Ne t profit attributable to shareholders of the Company 2,326,127 3,099,278 Pr ofit or loss attributable to minority interests 751,085 973,714 VI. Other comprehensive loss, net of tax (217,779) (26,314) Other comprehensive loss attributable to shareholders of the Company, net of income tax (165,139) (13,674) (I) Ot her comprehensive (loss)/income that cannot be reclassified subsequently to profit or loss (109,053) 13,887 1. Ch anges from remeasurement of defined benefit plans (58,881) 120 2. Ot her comprehensive loss that cannot be subsequently reclassified to profit or loss under the equity method – (23) 3. C hanges in fair value of investments in other equity instruments (50,172) 13,790 CONSOLIDATED INCOME STATEMENT (CONTINUED) For the six months period ended 30 June 2026 RMB’000
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– 55 – Item For the six months ended 30 June 2026 For the six months ended 30 June 2025 (unaudited) (unaudited) (II) Ot her comprehensive loss that will be reclassified subsequently to profit or loss (56,086) (27,561) 1. Ot her comprehensive loss that can be reclassified to profit or loss under the equity method (3,844) (1,916) 2. Ch anges in fair value of receivables financing 9,548 9,721 3. Tr anslation differences of financial statements denominated in foreign currencies (61,790) (35,366) Ot her comprehensive loss attributable to minority interests, net of tax (52,640) (12,640) VII. Total comprehensive income 2,859,433 4,046,678 To tal comprehensive income attributable to shareholders of the Company 2,160,988 3,085,604 To tal comprehensive income attributable to minority interests 698,445 961,074 VIII. Earnings per share Basic earnings per share (RMB/Share) 0.05 0.09 Diluted earnings per share (RMB/Share) 0.05 0.09 This financial statement is signed by following persons: Legal Representative: Chief Financial Officer: Person in Charge of the Accounting Body: Li Zhongze Dong Su Li Yifeng CONSOLIDATED INCOME STATEMENT (CONTINUED) For the six months period ended 30 June 2026 RMB’000
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– 56 – THE COMPANY’S INCOME STATEMENT For the six months period ended 30 June 2026 RMB’000 Item For the six months ended 30 June 2026 For the six months ended 30 June 2025 (unaudited) (unaudited) I. Total operating income 400,198 971,838 Including: Operating income 400,198 971,838 II. Total operating costs 552,607 851,670 Including: Operating costs 393,642 970,815 Taxes and levies 22,958 3,721 Selling expenses 12,392 8,414 Administrative expenses 102,596 102,432 Re search and development expenses 3,334 – Financial expenses 17,685 (233,712) Including: Interest expenses 415,064 735,248 Interest income 491,464 980,278 Add: Other income 1,779 769 Investment income 5,982,562 196,151 Including: Ga ins/(losses) on investments in associates and joint ventures 5,597 (3,767) Ga ins/(losses) on changes in fair value 25,560 (43,704) Impairment losses of credit (1,814) (3,946) Impairment losses of assets (226) (7,454) III. Operating profit 5,855,452 261,984 Add: Non-operating income 150 100 Less: Non-operating expenses 68 58
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– 57 – Item For the six months ended 30 June 2026 For the six months ended 30 June 2025 (unaudited) (unaudited) IV. Total profit 5,855,534 262,026 Less: Income tax expenses 3,007 – V. Net profit 5,852,527 262,026 (I) Cl assified by the continuity of operation Net profit from continuing operations 5,852,527 262,026 VI. Ot her comprehensive (loss)/income, net of tax (3,809) 95 (I) Ot her comprehensive (loss)/income that cannot be reclassified subsequently to profit or loss (2,325) 95 1. Ch anges from remeasurement of defined benefit plans (2,379) (4) 2. Ch anges in fair value of investments in other equity instruments 54 99 (II) Ot her comprehensive loss that will be reclassified to profit or loss (1,484) – 1. Ot her comprehensive loss that can be reclassified to profit or loss under the equity method (1,484) – VII. Total comprehensive income 5,848,718 262,121 This financial statement is signed by following persons: Legal Representative: Chief Financial Officer: Person in Charge of the Accounting Body: Li Zhongze Dong Su Li Yifeng THE COMPANY’S INCOME STATEMENT (CONTINUED) For the six months period ended 30 June 2026 RMB’000
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– 58 – VIII. CONSOLIDATED AND THE COMPANY’S CASH FLOWS STATEMENTS CONSOLIDATED CASH FLOW STATEMENT For the six months period ended 30 June 2026 RMB’000 Item For the six months ended 30 June 2026 For the six months ended 30 June 2025 (unaudited) (unaudited) I. Cash Flows from Operating Activities Cash receipts from the sale of goods and the rendering of services 177,629,377 198,282,825 Receipts of tax refunds 256,588 618,396 Other cash receipts relating to operating activities 7,374,621 6,392,516 Sub-total of cash inflows from operating activities 185,260,586 205,293,737 Cash payments for goods purchased and services received 184,456,573 196,917,475 Cash payments to and on behalf of employees 13,299,846 13,913,010 Payments of various types of taxes 4,702,233 7,387,115 Other cash payments relating to operating activities 5,602,891 9,061,115 Sub-total of cash outflows from operating activities 208,061,543 227,278,715 Net Cash Flow used in Operating Activities (22,800,957) (21,984,978)
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– 59 – Item For the six months ended 30 June 2026 For the six months ended 30 June 2025 (unaudited) (unaudited) II. Cash Flows from Investing Activities Cash receipts from disposal and recovery of investments 250,433 225,791 Cash receipts from investment income 141,853 82,415 Net cash receipts from disposals of fixed assets, intangible assets and other long-term assets 165,330 113,485 Net cash receipts from disposals of subsidiaries and other business units 26,042,923 150,797 Net cash receipts for acquisitions of subsidiaries and other business units 82,175 2,117,661 Other cash receipts relating to investing activities 107,335 2,338,707 Sub-total of cash inflows from investing activities 26,790,049 5,028,856 Cash payments to acquire or construct fixed assets, intangible assets and other long-term assets 2,024,591 2,017,837 Cash payments to acquire investments 1,626,013 3,529,253 Other cash payments relating to investing activities 623,172 86,295 Sub-total of cash outflows from investing activities 4,273,776 5,633,385 Net Cash Flow from/(Used in) Investing Activities 22,516,273 (604,529) CONSOLIDATED CASH FLOW STATEMENT (CONTINUED) For the six months period ended 30 June 2026 RMB’000
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– 60 – Item For the six months ended 30 June 2026 For the six months ended 30 June 2025 (unaudited) (unaudited) III. Cash Flows from Financing Activities Cash receipts from capital contributions 511,111 18,081,926 Including: Ca sh receipts from capital contributions from minority shareholders of subsidiaries 511,111 82,846 Cash receipts from issue of perpetual bonds – 17,999,080 Cash receipts from borrowings 33,175,009 113,928,725 Other cash receipts relating to financing activities 75,458 141,325 Sub-total of cash inflows from financing activities 33,761,578 132,151,976 Cash repayments of borrowings 33,460,731 84,927,194 Cash payments for distribution of dividends or profits or settlement of interest expenses 2,078,821 3,127,097 Including: Pa yments for distribution of dividends or profits to minority shareholders of subsidiaries 158,972 41,809 Other cash payments relating to financing activities 8,041,347 19,357,393 Sub-total of cash outflows from financing activities 43,580,899 107,411,684 Net Cash Flow (Used in)/from Financing Activities (9,819,321) 24,740,292 CONSOLIDATED CASH FLOW STATEMENT (CONTINUED) For the six months period ended 30 June 2026 RMB’000
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– 61 – Item For the six months ended 30 June 2026 For the six months ended 30 June 2025 (unaudited) (unaudited) IV. Ef fect of Foreign Exchange Rate Changes on Cash and Cash Equivalents (186,635) 5,592 V. Ne t (Decrease)/Increase in Cash and Cash Equivalents (10,290,640) 2,156,377 Add: Op ening balance of cash and cash equivalents 69,486,260 43,190,604 VI. Cl osing Balance of Cash and Cash Equivalents 59,195,620 45,346,981 This financial statement is signed by following persons: Legal Representative: Chief Financial Officer: Person in Charge of the Accounting Body: Li Zhongze Dong Su Li Yifeng CONSOLIDATED CASH FLOW STATEMENT (CONTINUED) For the six months period ended 30 June 2026 RMB’000
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– 62 – THE COMPANY’S CASH FLOW STATEMENT For the six months period ended 30 June 2026 RMB’000 Item For the six months ended 30 June 2026 For the six months ended 30 June 2025 (unaudited) (unaudited) I. Cash Flows from Operating Activities Cash receipts from the sale of goods and the rendering of services 502,266 214,429 Other cash receipts relating to operating activities 302,247 344,766 Sub-total of cash inflows from operating activities 804,513 559,195 Cash payments for goods purchased and services received 577,820 177,673 Cash payments to and on behalf of employees 97,607 88,614 Payments of various types of taxes 83,699 10,918 Other cash payments relating to operating activities 195,440 371,855 Sub-total of cash outflows from operating activities 954,566 649,060 Net Cash Flow Used in Operating Activities (150,053) (89,865) II. Cash Flows from Investing Activities Cash receipts from investment income 3,687,998 540,159 Net cash receipts from disposals of subsidiaries and other business units 26,041,658 – Other cash receipts relating to investing activities 15,559,915 10,974,935 Sub-total of cash inflows from investing activities 45,289,571 11,515,094
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– 63 – Item For the six months ended 30 June 2026 For the six months ended 30 June 2025 (unaudited) (unaudited) Cash payments to acquire or construct fixed assets, intangible assets and other long-term assets 3,243 6,000 Cash payments to acquire investments 8,518,993 200,000 Other cash payments relating to investing activities 43,830,181 20,059,000 Sub-total of cash outflows from investing activities 52,352,417 20,265,000 Net Cash Flow Used in Investing Activities (7,062,846) (8,749,906) III. Cash Flows from Financing Activities Cash receipts from capital contributions – 17,999,080 Cash receipts from borrowings – 65,696,061 Other cash receipts relating to financing activities 166,192,974 190,551,393 Sub-total of cash inflows from financing activities 166,192,974 274,246,534 THE COMPANY’S CASH FLOW STATEMENT (CONTINUED) For the six months period ended 30 June 2026 RMB’000
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– 64 – Item For the six months ended 30 June 2026 For the six months ended 30 June 2025 (unaudited) (unaudited) Cash repayments of borrowings 1,600,000 58,600,000 Cash payments for distribution of dividends or profits or settlement of interest expenses 678,876 1,180,012 Other cash payments relating to financing activities 165,099,700 210,008,350 Sub-total of cash outflows from financing activities 167,378,576 269,788,362 Net Cash Flow (Used in)/from Financing Activities (1,185,602) 4,458,172 IV. Ef fect of Foreign Exchange Rate Changes on Cash and Cash Equivalents (45,059) 373 V. Net Decrease in Cash and Cash Equivalents (8,443,560) (4,381,226) Add: Opening balance of cash and cash equivalents 23,228,983 8,354,373 VI. Closing Balance of Cash and Cash Equivalents 14,785,423 3,973,147 This financial statement is signed by following persons: Legal Representative: Chief Financial Officer: Person in Charge of the Accounting Body: Li Zhongze Dong Su Li Yifeng THE COMPANY’S CASH FLOW STATEMENT (CONTINUED) For the six months period ended 30 June 2026 RMB’000
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– 65 – IX. CONSOLIDATED AND THE COMPANY’S STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDER’S EQUITYFor the six months period ended 30 June 2026 RMB’000 For the six months ended 30 June 2026 (unaudited) Equity attributable to shareholders of the Company Item Share capital Other equity instruments Capital reserve Less: Treasury stock Other comprehensive income Special reserve Surplus reserve Retained profits Minority interests Total shareholders’ equity I. Closing balance of the prior year 20,723,619 54,100,000 23,549,164 – 629,544 1,688,552 3,782,468 51,289,390 27,796,701 183,559,438 II. Opening balance of the current period 20,723,619 54,100,000 23,549,164 – 629,544 1,688,552 3,782,468 51,289,390 27,796,701 183,559,438 III. Changes for the period (32,000) – 7,824 259,442 (128,191) 370,818 – 958,050 395,516 1,312,575 (I) Total comprehensive (loss)/income – – – – (165,139) – – 2,326,127 698,445 2,859,433 (II) Shareholders' contributions and reduction in capital (32,000) – 7,824 259,442 – – – – 543,233 259,615 1. Ordinary shares contributed by shareholders – – – – – – – – 511,111 511,111 2. Repurchase/cancellation ordinary shares (32,000) – (17,318) 259,442 – – – – – (308,760) 3. Capital contribution from holders of other equity instruments – – – – – – – – (902) (902) 4. Acquisition of subsidiaries – – – – – – – – 21,172 21,172 5. Others – – 25,142 – – – – – 11,852 36,994 (III) Profit distribution – – – – – – – (1,331,129) (875,532) (2,206,661) 1. Distribution to shareholders – – – – – – – – (839,532) (839,532) 2. Distribution of interest on perpetual bonds – – – – – – – (1,331,129) (36,000) (1,367,129) (IV) Transfers within shareholders' equity – – – – 36,948 – – (36,948) – – 1. Other comprehensive income transferred to retained earnings – – – – 36,948 – – (36,948) – – (V) Special reserve – – – – – 370,818 – – 29,370 400,188 1. Transfer to special reserve in the period – – – – – 3,733,924 – – 58,166 3,792,090 2. Amount utilised in the period – – – – – (3,363,106) – – (28,796) (3,391,902) IV. Closing balance of the current period 20,691,619 54,100,000 23,556,988 259,442 501,353 2,059,370 3,782,468 52,247,440 28,192,217 184,872,013
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– 66 – CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDER’S EQUITY (CONTINUED)For the six months period ended 30 June 2026 RMB’000 For the six months ended 30 June 2025 (unaudited) Equity attributable to shareholders of the Company Item Share capital Other equity instruments Capital reserve Other comprehensive income Special reserve Surplus reserve Retained profits Minority interests Total shareholders’ equity I. Closing balance of the prior year 20,723,619 50,600,000 23,460,671 751,118 1,024,967 3,782,468 52,700,255 29,292,768 182,335,866 II. Opening balance of the current period 20,723,619 50,600,000 23,460,671 751,118 1,024,967 3,782,468 52,700,255 29,292,768 182,335,866 III. Changes for the period – (3,000,000) (14,310) (14,444) 490,030 – 624,316 177,993 (1,736,415) (I) Total comprehensive (loss)/income – – – (13,674) – – 3,099,278 961,074 4,046,678 (II) Shareholders’ contributions and reduction in capital – (3,000,000) (14,310) – – – – (745,539) (3,759,849) 1. Ordinary shares contributed by shareholders – – – – – – – 82,846 82,846 2. Ca pital contribution from holders of other equity instruments – 18,000,000 (19,764) – – – – – 17,980,236 3. Ca pital reduction from holders of other equity instruments – (21,000,000) – – – – – – (21,000,000) 4. Acquisition of subsidiaries – – – – – – – 11,795 11,795 5. Others – – 5,454 – – – – (840,180) (834,726) (III) Profit distribution – – – – – – (2,475,732) (41,809) (2,517,541) 1. Distribution to shareholders – – – – – – (1,160,523) (41,809) (1,202,332) 2. Distribution of interest on perpetual bonds – – – – – – (1,315,209) – (1,315,209) (IV) Transfers within shareholders’ equity – – – (770) – – 770 – – 1. Ot her comprehensive income transferred to retained earnings – – – (770) – – 770 – – (V) Special reserve – – – – 490,030 – – 4,267 494,297 1. Transfer to special reserve in the period – – – – 4,887,943 – – 17,985 4,905,928 2. Amount utilised in the period – – – – (4,397,913) – – (13,718) (4,411,631) IV. Closing balance of the current period 20,723,619 47,600,000 23,446,361 736,674 1,514,997 3,782,468 53,324,571 29,470,761 180,599,451 This financial statement is signed by following persons: Legal Representative: Chief Financial Officer: Person in Charge of the Accounting Body: Li Zhongze Dong Su Li Yifeng
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– 67 – THE COMPANY’S STATEMENT OF CHANGES IN SHAREHOLDER’S EQUITYFor the six months period ended 30 June 2026 RMB’000 For the six months ended 30 June 2026 (unaudited) Item Share capital Other equity instruments Capital reserve Less: Treasury stock Other comprehensive loss Special reserve Surplus reserve (Accumulated losses)/ Retained profits Total shareholders’ equity I. Opening balance of the current period 20,723,619 54,100,000 37,823,082 – (21,414) 12,550 3,782,468 (2,785,151) 113,635,154 II. Changes for the period (32,000) – (17,318) 259,442 (3,809) – – 4,521,398 4,208,829 (I) Total comprehensive (loss)/income – – – – (3,809) – – 5,852,527 5,848,718 (II) Owners’ contributions and reduction in capital (32,000) – (17,318) 259,442 – – – – (308,760) 1. Repurchase/cancellation ordinary shares (32,000) – (17,318) 259,442 – – – – (308,760) 2. Ca pital contribution from holders of other equity instruments – – – – – – – – – 3. Others – – – – – – – – – (III) Profit distribution – – – – – – – (1,331,129) (1,331,129) 1. Distribution to shareholders – – – – – – – – – 2. Distribution of interest on perpetual bonds – – – – – – – (1,331,129) (1,331,129) III. Closing balance of the current period 20,691,619 54,100,000 37,805,764 259,442 (25,223) 12,550 3,782,468 1,736,247 117,843,983
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– 68 – THE COMPANY’S STATEMENT OF CHANGES IN SHAREHOLDER’S EQUITY (CONTINUED)For the six months period ended 30 June 2026 RMB’000 For the six months ended 30 June 2025 (unaudited) Item Share capital Other equity instruments Capital reserve Other comprehensive loss Special reserve Surplus reserve Retained profits Total shareholders’ equity I. Opening balance of the current period 20,723,619 50,600,000 37,858,940 (17,365) 12,550 3,782,468 6,140,098 119,100,310 II. Changes for the period – (3,000,000) (19,764) 95 – – (2,213,706) (5,233,375) (I) Total comprehensive income – – – 95 – – 262,026 262,121 (II) Owners’ contributions and reduction in capital – (3,000,000) (19,764) – – – – (3,019,764) 1. Ca pital contribution from holders of other equity instruments – 18,000,000 (19,764) – – – – 17,980,236 2. Ca pital reduction from holders of other equity instruments – (21,000,000) – – – – – (21,000,000) (III) Profit distribution – – – – – – (2,475,732) (2,475,732) 1. Distribution to shareholders – – – – – – (1,160,523) (1,160,523) 2. Distribution of interest on perpetual bonds – – – – – – (1,315,209) (1,315,209) III. Closing balance of the current period 20,723,619 47,600,000 37,839,176 (17,270) 12,550 3,782,468 3,926,392 113,866,935 This financial statement is signed by following persons: Legal Representative: Chief Financial Officer: Person in Charge of the Accounting Body: Li Zhongze Dong Su Li Yifeng
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– 69 – X. NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS (I) BASIC INFORMATION Metallurgical Corporation of China Ltd. (the “Company”) was established as a joint stock limited liability company by China Metallurgical Group Corporation (“CMGC”) and China Baowu Steel Group Corporation (“CBSGC”, formerly named as Baosteel Group Corporation) as promoters on 1 December 2008 and was registered in Beijing, the People’s Republic of China (the “PRC”), upon the approval by the State-owned Assets Supervision and Administration Commission of the State Council of the PRC (the “SASAC”) of Approval for CMGC’s Group Restructuring and Dual Listing in Domestic and Overseas Markets (Guozi Reform [2008] No. 528) issued on 10 June 2008. SASAC is the ultimate controlling party of the Company. Upon establishment of the Company, the share capital of the Company was RMB13 billion, representing 13 billion ordinary shares of RMB1.0 each. On 14 September 2009, the Company issued 3,500,000,000 A shares of the Company to domestic investors and these A shares of the Company were listed on the Shanghai Stock Exchange on 21 September 2009, and 2,610,000,000 H shares of the Company were issued on 16 September 2009 and listed on the Main Board of The Stock Exchange of Hong Kong Ltd. (the “Hong Kong Stock Exchange”) on 24 September 2009. During the course of the issue of A shares and H shares of the Company, CMGC and CBSGC transferred state-owned shares with a total amount of 350,000,000 A shares and 261,000,000 H shares of the Company to National Council for Social Security Fund (“NSSF”) of the PRC, of which 261,000,000 H shares held by NSSF were sold by the Company during the issuance of H shares, in accordance with the “Letter on the Entrustment to Sell State-owned Shares Held by the NSSF in Metallurgical Corporation of China Ltd.”. Upon completion of the public offering of A shares and H shares above, the total share capital of the Company increased to RMB19.11 billion. Pursuant to the special mandate granted by the shareholders at the 2016 First Extraordinary General Meeting, the 2016 First A Shareholders’ Class Meeting and the 2016 First H Shareholders’ Class Meeting, having received the Approval in Relation to the Non-public Issuance of Shares by Metallurgical Corporation of China Ltd. (Zheng Jian Xu Ke [2016] No. 1794) from the China Securities Regulatory Commission (the “CSRC”), the Company completed a private placement of 1,613,619,000 ordinary A shares with a par value of RMB1 per share to specific investors on 26 December 2016. Upon completion of the Non- Public Issuance, the share capital of the Company increased to RMB20,723,619,000, and CMGC remains as the controlling shareholder of the Company.
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– 70 – On 8 December 2015, the Strategic Restructuring between CMGC and China Minmetals Corporation (“CMC”) started upon the approval of the SASAC, whereby CMGC would be merged into CMC. In May 2019, CMGC completed the industrial and commercial registration of its shareholding alteration with its capital contributor changing from the SASAC to CMC. The status of CMGC as the controlling shareholder and the SASAC as the ultimate controlling shareholder of the Company does not change before or after the Strategic Restructuring. In October 2018, CMGC purchased the structure adjusting funds for central enterprises at a consideration of 3% shares it held in the Company. CMGC’s proportion of shareholding and voting rights upon the Company decreased from 59.18% to 56.18% subsequent to the completion of purchase and CMGC is still the controlling shareholder of the Company. In September and November 2019, CMGC purchased the central enterprise innovation driven ETF fund with 224,685,000 shares of the Company. CMGC’s proportion of shareholding and voting rights upon the Company decreased from 56.18% to 55.10% subsequent to the completion of purchase and CMGC is still the controlling shareholder of the Company. In May 2020, CMGC transferred its 1,227,760,000 A shares of the Company (accounting for 5.92% of the Company’s total share capital) to China National Petroleum Corporation (CNPC) for free. After the completion of the free transfer, CMGC’s proportion of shareholding and voting rights upon the Company decreased from 55.10% to 49.18%. In December 2024, CMGC transferred its 9,171,860,000 A shares of the Company (accounting for 44.26% of the Company’s total share capital) to CMC for free. After the completion of the free transfer, CMGC’s proportion of shareholding and voting rights upon the Company decreased from 49.18% to 4.92%. The controlling shareholder of the Company has changed to CMC and the ultimate controlling party of the Company is SASAC. On 16 January 2026, the Company convened its First Extraordinary General Meeting of Shareholders in 2026 and approved resolutions on the proposal for repurchasing its A shares and authorising the repurchase of its H shares, agreeing to use its own funds to repurchase a portion of issued A Shares and H shares via centralised bidding transactions. As of 30 June 2026, the Company has cumulatively repurchased 85,731,626 A shares, representing 0.4143% of the Company’s total share capital, and has cumulatively repurchased 32,000,000 H shares, representing 0.1544% of the Company’s total share capital. The repurchased H shares were fully cancelled on 2 June 2026. Upon the cancellation, the Company’s total share capital was reduced to RMB20,691,619,000.
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– 71 – The principal operating activities of the Company and its subsidiaries (the “Group”) have no significant changes during the reporting period. During the reporting period, the Group established a new business system layout known as “One Core, Two Main Bodies and Five Features (ːՇ˴ ʞतЍ )”, namely taking metallurgical construction as the core, industrial construction and infrastructure construction as the two main bodies, and engineering services, new materials, hig h-e nd equipment, energy and environmental protection, as well as digital and intelligent applications as the five featured businesses. The financial statements had been approved by the board of directors of the Company on 28 August 2026. (II) BASIS OF PREPARATION OF FINANCIAL STATEMENTS 1. Basis of preparation The Group implements the Accounting Standards for Business Enterprises issued by the Ministry of Finance of the People’s Republic of China (“MoF”) and the relevant regulations (hereinafter collectively referred to as the “ASBEs”). In addition, the Group has disclosed relevant financial information in accordance with Compilation Rules for Information Disclosure by Companies Offering Securities to the Public No. 15 – General Provisions on Financial Reports (Revised in 2023). According to Acceptance of Mainland Accounting and Auditing Standards and Mainland Audit Firms for Mainland Incorporated Companies Listed in Hong Kong and other Hong Kong Listing Rules Amendments issued by the Hong Kong Stock Exchange in December 2010, and the relevant provisions issued by the MoF and the CSRC, and approved by the stockholders in the general meeting of the Company, from fiscal year 2014, the Company no longer provides the financial statements prepared in accordance with the ASBEs and International Financial Reporting Standards (“IFRSs”) separately to stockholders of A shares and H shares. Instead, the Company provides the financial statements prepared in accordance with the ASBEs to all stockholders, taking into consideration the relevant disclosure requirements of Hong Kong Companies Ordinance and the Hong Kong Listing Rules into consideration. 2. Statement of compliance These financial statements are in compliance with the ASBEs to truly and completely reflect consolidated and the Company’s financial position at 30 June 2026 and consolidated and the Company’s operating results, consolidated and the Company’s changes in shareholders’ equity and cash flows for the period then ended.
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– 72 – 3. Accounting period The Group has adopted the calendar year as its accounting year, i.e., from 1 January to 31 December. The preparation period of the financial statements is from 1 January to 30 June 2026. 4. Functional currency The Company and its domestic subsidiaries choose Renminbi (“RMB”) as their functional currency. The functional currency of the overseas subsidiaries of the Company is selected based on the primary economic environment where they operate. The Company adopts RMB to present its financial statements. (III) CHANGES IN SIGNIFICANT ACCOUNTING POLICIES 1. Changes in Significant Accounting Policies The Ministry of Finance issued the “Explanations No. 19 to the Enterprise Accounting Standards” (hereinafter referred to as “Explanations No. 19”) on December 5, 2025, and “Explanations No. 20 to the Enterprise Accounting Standards” (hereinafter referred to as “Explanations No. 20”) on June 4, 2026. Explanations No. 19 provides guidance on the accounting treatment of compensatory assets in business combinations under non-common control, the accounting treatment of capital reserves related to the disposal of subsidiaries previously acquired through business combinations under common control, the derecognition of financial liabilities settled using electronic payment systems, and the assessment of contractual cash flow characteristics of financial assets. It is effective from January 1, 2026. Explanations No. 20 addresses the assessment of contractual cash flow characteristics of financial assets and the accounting treatment when currency convertibility is lacking. It is effective from January 1, 2026. After assessment, the Group has determined that the adoption of the above-mentioned provisions has no significant impact on the Group’s and the Company’s financial statements. 2. Changes in Significant Accounting Estimates During the current reporting period, the Group did not experience any significant changes in accounting estimates.
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– 73 – (IV) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. Cash and bank balances RMB’000 Item 30 June 2026 31 December 2025 (unaudited) Cash on hand 3,184 2,971 Bank deposits 66,005,100 76,145,655 Other monetary funds 2,073,193 1,616,257 Total 68,081,477 77,764,883 Including: To tal amount deposited overseas 4,428,449 4,329,700
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– 74 – 2. Notes receivable RMB’000 30 June 2026 (unaudited) 31 December 2025 Item Gross carrying amount Credit loss allowance Carrying amount Gross carrying amount Credit loss allowance Carrying amount Bank acceptances 1,667,665 3,978 1,663,687 1,992,718 4,873 1,987,845 Commercial acceptances 4,816,085 88,612 4,727,473 3,448,496 69,670 3,378,826 Total 6,483,750 92,590 6,391,160 5,441,214 74,543 5,366,671 3. Accounts receivable RMB’000 Aging 30 June 2026 31 December 2025 (unaudited) Within 1 year 150,268,697 152,243,376 1 to 2 years 60,093,365 66,814,265 2 to 3 years 24,965,033 21,574,033 3 to 4 years 8,878,798 9,339,328 4 to 5 years 8,073,215 8,025,452 Over 5 years 17,667,189 15,940,314 Total gross carrying amount 269,946,297 273,936,768 Less: Credit loss allowance 31,347,751 30,499,748 Carrying amount 238,598,546 243,437,020
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– 75 – 4. Prepayments RMB’000 30 June 2026 (unaudited) 31 December 2025 Aging Amount Proportion Amount Proportion (%) (%) Within 1 year 14,254,695 80.07 15,122,953 79.48 1 to 2 years 2,084,766 11.71 2,235,862 11.75 2 to 3 years 635,196 3.57 624,675 3.28 Over 3 years 828,430 4.65 1,044,665 5.49 Total 17,803,087 100.00 19,028,155 100.00 5. Other receivables (1) Category of other receivables RMB’000 Item 30 June 2026 31 December 2025 (unaudited) Dividends receivable 44,778 33,568 Other receivables 30,434,643 59,339,872 Total 30,479,421 59,373,440
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– 76 – (2) Other receivables (a) Aging analysis RMB’000 Aging 30 June 2026 31 December 2025 (unaudited) Within 1 year 10,852,343 39,300,729 1 to 2 years 5,881,850 6,154,696 2 to 3 years 3,533,099 4,178,705 3 to 4 years 4,182,087 3,548,769 4 to 5 years 2,521,941 2,806,796 Over 5 years 13,968,856 13,950,453 Total gross carrying amount 40,940,176 69,940,148 Less: Cr edit loss allowance 10,505,533 10,600,276 Carrying amount 30,434,643 59,339,872 (b) Other receivables categorised by nature RMB’000 Nature Gross carrying amount at 30 June 2026 Gross carrying amount at 31 December 2025 (unaudited) Deposits and guarantees 15,369,043 16,085,576 Advances 13,211,175 14,215,000 Borrowings and current accounts 6,325,418 6,994,096 Payments to be recovered for equity transfer and investment 1,114,659 27,157,582 Others 4,919,881 5,487,894 Total 40,940,176 69,940,148
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– 77 – 6. Inventories (1) Classification of inventories RMB’000 Item 30 June 2026(unaudited) 31 December 2025 Gross carrying amount Provision for decline in value Carrying amount Gross carrying amount Provision for decline in value Carrying amount Raw materials 1,637,113 24,142 1,612,971 1,424,143 25,719 1,398,424 Purchased materials 53,649 10 53,639 46,931 10 46,921 Materials on consignment for further processing 9,269 – 9,269 5,271 – 5,271 Work in progress 2,718,903 323,892 2,395,011 2,327,939 323,892 2,004,047 Goods on hand 2,215,039 42,507 2,172,532 1,783,736 43,152 1,740,584 Reusable materials 377,112 1,191 375,921 399,132 1,194 397,938 Costs to fulfil a contract 305,917 – 305,917 380,928 – 380,928 Costs of properties under development 3,311,806 88,889 3,222,917 3,811,830 88,889 3,722,941 Completed properties held for sale 6,832,387 705,458 6,126,929 6,703,917 713,518 5,990,399 Total 17,461,195 1,186,089 16,275,106 16,883,827 1,196,374 15,687,453 (2) Provision for decline in value of inventories RMB’000 Increase for the period Decrease for the period Item 31 December 2025 Provision for the period Transferred- out for the period 30 June 2026 (unaudited) Raw materials 25,719 – 1,577 24,142 Purchased materials 10 – – 10 Work in progress 323,892 – – 323,892 Goods on hand 43,152 1,649 2,294 42,507 Reusable materials 1,194 – 3 1,191 Costs of properties under development 88,889 – – 88,889 Completed properties held for sale 713,518 – 8,060 705,458 Total 1,196,374 1,649 11,934 1,186,089
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– 78 – 7. Contract assets (1) Classification of contract assets RMB’000 30 June 2026(unaudited) 31 December 2025 Item Gross carrying amount Provision for impairment Carrying amount Gross carrying amount Provision for impairment Carrying amount Contract assets interrelated with engineering contracting services 204,401,687 7,078,481 197,323,206 192,016,803 6,695,711 185,321,092 Contract assets interrelated with quality guarantee deposit 4,042,905 104,180 3,938,725 4,319,945 141,304 4,178,641 Total 208,444,592 7,182,661 201,261,931 196,336,748 6,837,015 189,499,733 (2) West Australia SINO Iron Mining Project In 2012, MCC Mining (Western Australia) Pty Ltd. (“Western Australia”), a wholly owned subsidiary of the Group, was forced to postpone the SINO Iron Project, including six production lines in total, due to extreme weather condition in Australia and other unpredictable reasons. The owner of the project is CITIC Limited. The Group negotiated with China CITIC Group Ltd. (“CITIC Group”, the parent company of CITIC Limited) for the project delay and the total contract price after cost overruns. CITIC Group and Western Australia signed the Third Supplementary EPC Agreement of SINO Iron Project in Western Australia on 30 December 2011 agreeing that the construction costs to complete the second main process line including trial run should be within USD4.357 billion. The ultimate construction costs for the aforesaid project should be determined by an audit performed by a third-party auditor. Based on the consensus with CITIC Group above and the estimated total construction costs of the project, the Group recognised impairment loss on contract costs of USD481 million (equivalent to approximately RMB3.035 billion) for the year ended 31 December 2012.
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– 79 – As of 31 December 2013, the first and the second production lines of the project undertaken by Western Australia were completed and put into operation. Western Australia and Sino Iron Pty Ltd. (“the Owner”, a wholly-owned subsidiary of CITIC Limited) signed the Fourth Supplementary Agreement of SINO Iron Project in Western Australia (“Fourth Supplementary Agreement”) dated 24 December 2013 for the handing over of the first and the second production lines and related construction work of the project to the Owner at the end of 2013. As such, the construction, installation and trial running work set out in the EPC contract for the project entered into by Western Australia were completed. For the third to sixth production lines of the project, Western Australia and Northern Engineering & Technology Corporation, a subsidiary of the Company, have entered into the Project Management Service Agreement and Engineering Design and Equipment Procurement Management Technology Service Agreement, respectively, with the Owner for the provision of follow-up technology management services. In addition, both parties have agreed to engage an independent third party to perform an audit of the total construction costs incurred for the project, the reasonableness of the construction costs incurred, the reasons for the project delay and the responsibility of the delay. Based on the final result of the audit, the two parties will make final settlement of the project. The Group assessed the accounts receivable and the contract assets based on expected credit losses. In the opinion of the Group, although the final contract amount shall be confirmed after the auditing of the third party, the consensus between the Group and CITIC Group for the previously agreed construction costs of USD4.357 billion mentioned in the paragraph above remained unchanged. The Group reasonably expected that the consensus should not have any significant change and recognised no additional contract losses as at 30 June 2026. As at 30 June 2026, the accounts receivable for the above project amounted to RMB1,645,374,000, and the contract assets amounted to RMB3,643,902,000. After the completion of the audit mentioned above, the Group will actively follow up with CITIC Group and the Owner for negotiation and discussion in reaching the final agreed project construction costs and make relevant accounting treatments accordingly.
Page 80
– 80 – 8. Long-term receivables RMB’000 Item 30 June 2026 31 December 2025 Discount rate range (unaudited) Long-term receivables on project 59,378,135 60,986,568 3.10%-5.00% Long-term loans 3,964,111 4,681,353 3.60% Receivables on disposal of equity investments 333,485 333,485 4.90% Total gross carrying amount 63,675,731 66,001,406 / Less: Credit loss allowance of long-term receivables 2,857,428 2,828,624 / Total net book value 60,818,303 63,172,782 / Less: Lo ng-term receivables due within 1 year, net 10,408,286 11,483,026 / Long-term receivables due over 1 year, net 50,410,017 51,689,756 / 9. Notes payable RMB’000 Category 30 June 2026 31 December 2025 (unaudited) Bank acceptances 24,473,883 24,323,332 Commercial acceptances 1,996,910 1,284,983 Total 26,470,793 25,608,315
Page 81
– 81 – 10. Accounts payable (1) Classification of accounts payable RMB’000 Item 30 June 2026 31 December 2025 (unaudited) Project fees 276,863,304 289,213,441 Purchases 68,909,753 73,818,529 Labour fees 27,046,464 29,030,083 Quality guarantee deposit 1,638,127 1,745,277 Design fees 561,351 664,999 Others 1,252,684 2,128,544 Total 376,271,683 396,600,873 (2) Aging analysis of accounts payable RMB’000 Aging 30 June 2026 31 December 2025 (unaudited) Within 1 year 260,710,451 283,249,627 1 to 2 years 70,362,627 73,677,289 2 to 3 years 26,506,938 20,907,224 Over 3 years 18,691,667 18,766,733 Total 376,271,683 396,600,873
Page 82
– 82 – 11. Contract liabilities RMB’000 Item 30 June 2026 31 December 2025 (unaudited) Contract liabilities relating to engineering contracting service contracts 48,537,835 53,661,656 Contract liabilities formed by receipt of property sales amount in advance 1,365,405 880,214 Contract liabilities relating to sales contracts 763,506 1,260,911 Contract liabilities relating to contracts of other customers 434,945 334,255 Total 51,101,691 56,137,036 12. Other payables (1) Classification of other payables RMB’000 Category 30 June 2026 31 December 2025 (unaudited) Interest payable 38,658 34,190 Dividends payable 2,509,822 992,051 Other payables 43,586,034 49,229,937 Total 46,134,514 50,256,178
Page 83
– 83 – (2) Dividends payable RMB’000 Item 30 June 2026 31 December 2025 (unaudited) Interest on perpetual bonds classified as equity instrument 1,393,464 555,048 Shareholders’ dividends 1,116,358 437,003 Total 2,509,822 992,051 (3) Other payables RMB’000 Item 30 June 2026 31 December 2025 (unaudited) Current accounts 27,325,641 31,060,956 Guarantees 11,222,755 12,439,603 Deposits 1,138,946 1,332,078 Others 3,898,692 4,397,300 Total 43,586,034 49,229,937
Page 84
– 84 – 13. Operating income and operating costs RMB’000 For the six months ended 30 June 2026 (unaudited) For the six months ended 30 June 2025 (unaudited) Item Revenue Cost Revenue Cost Principal operating activities 175,314,717 158,282,941 236,829,648 213,021,492 Other operating activities 591,845 381,416 703,064 542,443 Total 175,906,562 158,664,357 237,532,712 213,563,935 14. Taxes and levies RMB’000 Item For the six months ended 30 June 2026 For the six months ended 30 June 2025 (unaudited) (unaudited) Stamp tax 152,115 138,240 Urban maintenance and construction tax 150,121 153,184 Property Tax 118,183 162,824 Education surcharge 112,009 120,660 Land use tax 53,971 68,480 Land appreciation tax 20,947 24,157 Others 88,729 209,610 Total 696,075 877,155
Page 85
– 85 – 15. Selling expenses RMB’000 Item For the six months ended 30 June 2026 For the six months ended 30 June 2025 (unaudited) (unaudited) Employee benefits 701,296 705,889 Travel expenses 117,336 128,307 Advertising and sales service expenses 86,910 221,624 Lease expenses 34,490 42,513 Office expenses 32,942 51,295 Consulting fee 20,778 23,566 Depreciation of fixed assets 3,907 5,027 Others 103,565 125,862 Total 1,101,224 1,304,083 16. Administrative expenses RMB’000 Item For the six months ended 30 June 2026 For the six months ended 30 June 2025 (unaudited) (unaudited) Employee benefits 3,379,601 3,718,083 Depreciation of fixed assets 216,501 264,499 Travel expenses 154,130 151,971 Professional service fees 121,960 139,372 Office expenses 117,996 130,070 Lease expenses 106,901 115,784 Amortisation of intangible assets 85,267 92,313 Depreciation of right-of-use assets 66,419 61,282 Maintenance fee 23,984 43,592 Others 509,216 615,756 Total 4,781,975 5,332,722
Page 86
– 86 – 17. Research and development expenses RMB’000 Item For the six months ended 30 June 2026 For the six months ended 30 June 2025 (unaudited) (unaudited) Research and development material expenditure 2,451,856 4,116,474 Employee benefits 1,999,579 2,268,604 Depreciation of fixed assets and right-of-use assets 32,348 53,575 Amortisation of intangible assets 7,936 13,247 Others 212,182 283,070 Total 4,703,901 6,734,970 18. Financial expenses RMB’000 Item For the six months ended 30 June 2026 For the six months ended 30 June 2025 (unaudited) (unaudited) Interest expenses 1,341,256 2,158,279 Less: Capitalised interest expenses 222,009 723,249 Less: Interest income 1,275,151 937,172 Exchange losses 404,957 27,603 Bank charges 286,133 209,019 Interest expenses on lease liabilities 13,892 14,700 Others 80,282 4,620 Total 629,360 753,800
Page 87
– 87 – 19. Investment loss RMB’000 Item For the six months ended 30 June 2026 For the six months ended 30 June 2025 (unaudited) (unaudited) Investment income from disposal of held-fo r-trading financial assets 3,339 – Investment income on disposal of long-term equity investments – 2,210 Investment income from holding investments in other non-current financial assets 7,130 908 Investment income from holding investments in other equity instruments 1,057 15,313 Loss from long-term equity investments under equity method (36,374) (54,451) Investment loss from disposal of receivables financing (46,103) (150,600) Losses from derecognition of financial assets at amortised cost (185,143) (256,644) Profit or loss from debt restructuring 33,080 (10,443) Others (3,155) 7,950 Total (226,169) (445,757)
Page 88
– 88 – 20. Impairment losses of credit RMB’000 Item For the six months ended 30 June 2026 For the six months ended 30 June 2025 (unaudited) (unaudited) Losses on credit impairment of notes receivable (18,047) (4,405) Losses on credit impairment of accounts receivable (951,669) (1,660,181) Reversal of/(Losses on) credit impairment of other receivables 89,868 (192,183) Losses on credit impairment of long-term receivables (46,158) (48,745) Total (926,006) (1,905,514) 21. Impairment losses of assets RMB’000 Item For the six months ended 30 June 2026 For the six months ended 30 June 2025 (unaudited) (unaudited) Losses on decline in value of inventories (1,649) (672,766) Losses on impairment of contract assets (297,889) (979,946) Losses on impairment of investment properties (3,410) – Losses on impairment of intangible assets (192,452) (704) Losses on impairment of other non-currents assets (4,153) (43,678) Reversal of/(Losses on) impairment of other current assets 8,025 (2,989) Total (491,528) (1,700,083)
Page 89
– 89 – 22. Non-operating income RMB’000 Item For the six months ended 30 June 2026 For the six months ended 30 June 2025 Amount recognised in non-recurring profit or loss for the period (unaudited) (unaudited) (unaudited) Income from penalty 11,560 11,740 11,560 Government grants 2,192 19,990 2,192 Unpayable balances 109,112 33,252 109,112 Others 48,754 62,478 48,754 Total 171,618 127,460 171,618
Page 90
– 90 – 23. Non-operating expenses RMB’000 Item For the six months ended 30 June 2026 For the six months ended 30 June 2025 Amount recognised in non-recurring profit or loss for the period (unaudited) (unaudited) (unaudited) Donation expenditure 21,405 15,009 21,405 Compensation and default payments 12,031 38,797 12,031 Litigation estimated liabilities 7,770 50,748 7,770 Fines and surcharges for overdue payments 3,163 24,799 3,163 Loss on damage and retirement of non-current assets 3,035 6,218 3,035 Others 37,137 1,076 37,137 Total 84,541 136,647 84,541 24. Income tax expenses (1) Classification of income tax expenses RMB’000 Item For the six months ended 30 June 2026 For the six months ended 30 June 2025 (unaudited) (unaudited) Current tax expenses 1,169,836 1,478,505 Deferred tax expenses (227,615) (272,348) Total 942,221 1,206,157
Page 91
– 91 – (2) Reconciliation of income tax expenses to the accounting profit RMB’000 Item For the six months ended 30 June 2026 For the six months ended 30 June 2025 (unaudited) (unaudited) Total profit 4,019,433 5,279,149 Income tax expenses calculated at 25% 1,004,858 1,319,787 Effect of difference between applicable tax rate and statutory tax rate (287,110) (667,950) Effect of non-taxable income (6,255) (36,706) Effect of non-deductible costs, expenses and losses 88,507 133,715 Effect of utilising deductible temporary differences or deductible loss not recognised for deferred tax assets for prior period (96,613) (102,362) Effect of deductible temporary differences or deductible losses for which deferred tax assets are not recognised for the period 311,989 1,158,220 Weighted deduction for R&D expenses and others (73,155) (598,547) Income tax expenses 942,221 1,206,157 Most of the companies now comprising the Group are subject to PRC enterprise income tax, which have been provided based on the statutory income tax rate of 25% on the assessable income during the current period as determined in accordance with the relevant PRC income tax rules and regulations except for certain subsidiaries which were exempted from tax or taxed at preferential rate. Taxation of overseas subsidiaries within the Group has been calculated on the estimated assessable profit of these subsidiaries for the period at the rates of taxation prevailing in the countries or jurisdictions in which these companies operate.
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– 92 – 25. Other comprehensive income Accumulated balance of other comprehensive income attributable to shareholders of the Company in the consolidated balance sheet: RMB’000 Item 31 December 2025 Attributable to shareholders of the Company, net of income tax Less: Retained earnings transferred from other comprehensive income 30 June 2026 (unaudited) Other comprehensive income that cannot be reclassified to profit or loss Changes in remeasurement of defined benefit plan 2,477 (58,881) – (56,404) Changes in fair value of investments in other equity instruments (58,358) (50,172) 1,849 (110,379) Other comprehensive losses that cannot be reclassified to profit or loss under the equity method (38,797) – (38,797) – Subtotal (94,678) (109,053) (36,948) (166,783) Other comprehensive income that will be reclassified to profit or loss Other comprehensive income/(loss) that can be reclassified to profit or loss under the equity method 57,094 (3,844) – 53,250 Changes in fair value of receivables financing (64,007) 9,548 – (54,459) Translation differences of financial statements denominated in foreign currencies 731,135 (61,790) – 669,345 Subtotal 724,222 (56,086) – 668,136 Total 629,544 (165,139) (36,948) 501,353
Page 93
– 93 – Amount incurred in other comprehensive income: For the six months ended 30 June 2026 (unaudited): RMB’000 Item Pre-tax amount incurred in the period Less: Income tax expenses Attributable to shareholders of the Company, net of income tax Attributable to minority shareholders, net of income tax Other comprehensive income that cannot be reclassified to profit or loss Changes in remeasurement of defined benefit plan (63,710) (43) (58,881) (4,786) Changes in fair value of investments in other equity instruments (58,739) (7,242) (50,172) (1,325) Subtotal (122,449) (7,285) (109,053) (6,111) Other comprehensive income that will be reclassified to profit or loss Other comprehensive loss that can be reclassified to profit or loss under the equity method (4,749) – (3,844) (905) Changes in fair value of receivables financing 12,230 3,260 9,548 (578) Translation differences of financial statements denominated in foreign currencies (106,836) – (61,790) (45,046) Subtotal (99,355) 3,260 (56,086) (46,529) Total (221,804) (4,025) (165,139) (52,640)
Page 94
– 94 – 26. Earnings per share (1) When calculating earnings per share, net profit for the period attributable to ordinary shareholders RMB’000 Item For the six months ended 30 June 2026 For the six months ended 30 June 2025 (unaudited) (unaudited) Net profit for the period attributable to shareholders of the Company 2,326,127 3,099,278 Including: Ne t profit from continuing operations attributable to shareholders of the Company 2,326,127 4,388,171 Net loss from discontinued operations attributable to shareholders of the Company – (1,288,893) Less: Ne t profit attributable to holders of perpetual bonds (1,331,129) (1,315,209) Net profit for the period attributable to ordinary shareholders 994,998 1,784,069
Page 95
– 95 – (2) For the purpose of calculating basic earnings per share, the denominator is the weighted average number of outstanding ordinary shares Item For the six months ended 30 June 2026 For the six months ended 30 June 2025 (unaudited) (unaudited) ’000 shares ’000 shares Number of ordinary shares outstanding at the beginning of the period 20,723,619 20,723,619 Add: Weighted average number of ordinary shares issued during the period – – Less: Weighted average number of ordinary shares repurchased during the period (69,450) – Number of ordinary shares outstanding at the end of the period 20,654,169 20,723,619
Page 96
– 96 – (3) Earnings per share Item For the six months ended 30 June 2026 For the six months ended 30 June 2025 (unaudited) (unaudited) Calculated based on net profit attributable to ordinary shareholders: Basic earnings per share RMB0.05/share RMB0.09/share Diluted earnings per share RMB0.05/share RMB0.09/share Calculated based on net profit from continuing operations attributable to ordinary shareholders: Basic earnings per share RMB0.05/share RMB0.15/share Diluted earnings per share RMB0.05/share RMB0.15/share Calculated based on net loss from discontinued operations attributable to ordinary shareholders: Basic earnings per share N/A RMB (0.06)/share Diluted earnings per share N/A RMB (0.06)/share
Page 97
– 97 – XI. DIVIDENDS On 29 June 2026, the 2025 annual general meeting of the Company considered and approved the proposal in relation to the interim dividend for the year 2026. Pursuant to the interim dividend plan, the Company proposes to distribute an interim dividend if the conditions for the interim dividend are satisfied. The total amount of the interim dividend shall not exceed the consolidated net profit attributable to Shareholders of the listed company of MCC for the first half of 2026 (RMB2,326,127,000) and the undistributed profits of the parent company of MCC as at the end of June 2026 (RMB1,736,247,000). The specific plan of interim dividend for the year 2026 and its implementation arrangements will be rolled out in due course during the current year. XII. CHANGES IN SHARE CAPITAL AND PARTICULARS OF SHAREHOLDERS (I) Changes in ordinary shares 1. Changes in shares Unit: share Before the change Increase/(decrease) in the change (+,-) After the change Number of shares Proportion New shares issued Bonus shares Capital reserve capitalisation Others Sub-total Number of shares Proportion (%) (%) I. Shares Subject to Selling Restrictions – – – – – – – – 1. State-held shares – – – – – – – – 2. State-owned legal-person shares – – – – – – – – 3. Other domestic-funded shares – – – – – – – – Including: Do mestic non-state-owned legal-person shares – – – – – – – – Domestic natural-person shares – – – – – – – – 4. Foreign-funded shares – – – – – – – – Including: Overseas legal-person shares – – – – – – – – Overseas natural-person shares – – – – – – – – II. Shares Without Selling Restrictions 20,723,619,170 100 – – – -32,000,000 -32,000,000 20,691,619,170 100 1. RMB ordinary shares 17,852,619,170 86.15 – – – – – 17,852,619,170 86.28 2. Domestically-listed foreign shares – – – – – – – – – 3. Overseas-listed foreign shares 2,871,000,000 13.85 – – – -32,000,000 -32,000,000 2,839,000,000 13.72 4. Others – – – – – – – – – III. Total Number of Shares 20,723,619,170 100 – – – -32,000,000 -32,000,000 20,691,619,170 100
Page 98
– 98 – 2. Explanation of the Changes in Shares The relevant repurchase-related resolutions were considered and approved at the 2026 first extraordinary shareholders’ meeting. The Company completed the cancellation formalities for 32,000,000 repurchased H Shares on 2 June 2026. Upon completion of such cancellation, the Company’s total share capital decreased from 20,723,619,170 shares to 20,691,619,170 shares. 3. Impacts on Financial Indicators including Earnings per Share, Net Assets per Share, etc. Due to Changes in Shares during the Period from the End of the Reporting Period to the Issuance of Interim Report (if any) Applicable ✔ Not applicable (II) Changes in Restricted Shares Applicable ✔ Not applicable (III) Particulars of Shareholders (I) Total Number of Shareholders Total number of ordinary Shareholders as at the end of the Reporting Period (persons) 361,569 Total number of Shareholders of preferred shares whose voting rights have been restored as at the end of the Reporting Period (person) 0
Page 99
– 99 – (II) Table of Shareholding of the Top Ten Shareholders and Top Ten Shareholders with Tradable Shares (or Shareholders not Subject to Selling Restrictions) as at the End of the Reporting Period (1) Unit: share Shareholding of the top ten Shareholders (excluding shares lent under the margin refinancing transfer) Name of shareholder (full name) Increase/ decrease during the Reporting Period Number of shares held at the end of the period Proportion Number of shares subject to selling restrictions Pledged, charged or frozen Nature of shareholder Status of shares Amount (%) China Minmetals Corporation 0 9,171,859,770 44.33 0 Nil 0 State-owned legal person HKSCC Nominees Limited (2) -32,225,750 2,818,873,151 13.62 0 Nil 0 Others China National Petroleum Corporation 0 1,227,760,000 5.93 0 Nil 0 State-owned legal person China Metallurgical Group Corporation 0 1,019,095,530 4.93 0 Nil 0 State-owned legal person Hong Kong Securities Clearing Company Limited -7,231,480 188,720,708 0.91 0 Nil 0 State-owned legal person Jia Tiebin 6,298,900 30,000,048 0.14 0 Nil 0 Others China Construction Bank Corporation – E Fund CSI 300 Exchange-traded Open-end Index Sponsoring-type Securities Investment Fund -95,613,158 23,042,213 0.11 0 Nil 0 Others Lun Jinguo ( ) 20,925,514 20,925,514 0.10 0 Nil 0 Others Beijing Zongshen Network Technology Co., Ltd. (ʮ̡ ) 20,000,000 20,000,000 0.10 0 Nil 0 Others JIn Zhilan (ᚆ ) 12,813,100 18,215,600 0.09 0 Nil 0 Others
Page 100
– 100 – Shareholding of the top ten Shareholders not subject to selling restrictions (excluding shares lent under the margin refinancing transfer) Name of shareholder Number of shares held without selling restrictions Types and number of shares Types Amount China Minmetals Corporation 9,171,859,770 RMB ordinary shares 9,171,859,770 HKSCC Nominees Limited (2) 2,818,873,151 Overseas-listed foreign shares 2,818,873,151 China National Petroleum Corporation 1,227,760,000 RMB ordinary shares 1,227,760,000 China Metallurgical Group Corporation 1,019,095,530 RMB ordinary shares 1,019,095,530 Hong Kong Securities Clearing Company Limited 188,720,708 RMB ordinary shares 188,720,708 Jia Tiebin 30,000,048 RMB ordinary shares 30,000,048 China Construction Bank Corporation – E Fund CSI 300 Exchange-traded Open-end Index Sponsoring-type Securities Investment Fund 23,042,213 RMB ordinary shares 23,042,213 Lun Jinguo ( ) 20,925,514 RMB ordinary shares 20,925,514 Beijing Zongshen Network Technology Co., Ltd. ( ̏ԯᐽ ʮ̡ ) 20,000,000 RMB ordinary shares 20,000,000 JIn Zhilan (ᚆ ) 18,215,600 RMB ordinary shares 18,215,600 Explanation of share repurchase accounts among the top ten Shareholders As at 30 June 2026, the repurchase-special securities account of Metallurgical Corporation of China Ltd. held 85,731,626 A Shares of the Company, representing 0.41% of the Company’s total share capital. The repurchase special account is not presented among the top-ten shareholders in accordance with relevant provisions. Explanations on the aforesaid Shareholders’ entrusting of voting rights, entrusted voting rights, and waiver of voting rights Not applicable Explanations on the connections or parties acting in concert among the aforesaid Shareholders Among the above Shareholders, China Minmetals Corporation and China Metallurgical Group Corporation are considered persons acting in concert. Apart from this, the Company is unaware of any related party relationships or persons acting in concert among other shareholders. Explanations on the Shareholders of preferred shares whose voting rights have been restored and the number of shares held Not applicable Note (1): Figures in the table were extracted from the Company register of shareholders as at 30 June 2026. Note (2): The H Shares held by HKSCC Nominees Limited are those held on behalf of their beneficial owners.
Page 101
– 101 – Participation of the Shareholders holding 5% or above shares, top ten Shareholders and top ten Shareholders with tradable shares not subject to selling restrictions in lending shares in the margin refinancing business Applicable ✔ Not applicable Changes in the top ten shareholders and top ten shareholders with tradable shares not subject to selling restrictions due to the lending/ returning of shares in the margin refinancing Applicable ✔ Not applicable Number of shares held by the top ten Shareholders subject to selling restrictions and information on the selling restrictions Applicable ✔ Not applicable (III) Strategic Investors or General Legal Persons Became One of the Top Ten Shareholders as a Result of the Placing of the New Shares Applicable ✔ Not applicable XIII. PURCHASE, SALE OR REDEMPTION OF SECURITIES OF THE COMPANY To effectively safeguard Shareholders’ rights and interests, boost investor confidence, and further stabilise and enhance the Company’s value, the Company continued to implement A Share and H Share repurchases during the Reporting Period. As at 30 June 2026, the Company repurchased 85,731,626 A Shares through the Shanghai Stock Exchange system by way of centralised bidding trading. The repurchased A Shares accounted for 0.4143% of the Company’s total share capital (after cancellation of repurchased H Shares). The highest transaction price was RMB3.25 per share and the lowest transaction price was RMB2.78 per share, with a total transaction amount of RMB259,434,135.42 (excluding transaction costs). By way of on-market repurchase (centralised bidding) through the Hong Kong Stock Exchange’s trading system, the Company repurchased 32,000,000 H Shares, representing 0.1544% of the Company’s total share capital (before cancellation). The highest transaction price was HK$1.94 per share and the lowest transaction price was HK$1.49 per share, with a total transaction amount of HK$55,450,100.30 (excluding transaction costs). The aforesaid repurchased H Shares were fully cancelled on 2 June 2026. Going forward, the Company will continue to push forward the share repurchase work, so as to effectively improve earnings per share and shareholder returns. Meanwhile, the Company will conduct regular investor communication, fully convey the Company’s value and consolidate long-term market investment confidence.
Page 102
– 102 – Save for the above-mentioned repurchase matters and those disclosed under the section “Bond-related Matters” below, neither the Company nor its subsidiaries purchased, sold or redeemed any listed securities of the Company (including sale of treasury shares, as defined under the Hong Kong Listing Rules) during the Reporting Period. As at the end of the Reporting Period, the Company held no treasury shares, and held 85,731,626 repurchased A Shares that have not yet been canceled; and the Company had repurchased 32,000,000 H shares, all of which were canceled on 2 June 2026. XIV. RELEVANT INFORMATION ON BONDS (I) Corporate Bonds (including enterprise bonds) Applicable ✔ Not applicable (II) Non-financial Corporate Debt Financing Instruments in Interbank Bond Market Unit: RMB’00 million Name of bonds Abbreviation Bond code Issue date Value date Expiry date Outstanding bonds Interest rate Method to pay principal and interests Trading venue Investor suitability arrangements (if any) Trading mechanism Is there any risk of termination of listing and trading (%) 2023 Twelfth Tranche of Medium-term Notes of Metallurgical Corporation of China Ltd. 23 MCC MTN012 102382348 31 August 2023– 1 September 2023 4 September 2023 Exercise Date of Options redeemed by the issuer, with the first exercise date on 4 September 2026 10 3.1 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No 2023 Thirteenth Tranche of Medium-term Notes of Metallurgical Corporation of China Ltd. 23 MCC MTN013 102382364 1 September 2023, 4 September 2023 5 September 2023 Exercise Date of Options redeemed by the issuer, with the first exercise date on 5 September 2026 10 3.22 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No
Page 103
– 103 – Name of bonds Abbreviation Bond code Issue date Value date Expiry date Outstanding bonds Interest rate Method to pay principal and interests Trading venue Investor suitability arrangements (if any) Trading mechanism Is there any risk of termination of listing and trading (%) 2024 First Tranche of Medium-term Notes of Metallurgical Corporation of China Ltd. 24 MCC MTN001 102480524 21 February 2024–22 February 2024 23 February 2024 23 February 2034 10 2.94 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No 2024 Second Tranche of Medium-term Notes of Metallurgical Corporation of China Ltd. 24 MCC MTN002 102480538 23 February 2024, 26 February 2024 27 February 2024 27 February 2034 10 2.92 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No 2024 Third Tranche of Medium-term Notes of Metallurgical Corporation of China Ltd. 24 MCC MTN003 102480930 14 March 2024 –15 March 2024 18 March 2024 Exercise Date of Options redeemed by the issuer, with the first exercise date on 18 March 2027 20 2.79 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No 2024 Fourth Tranche of Medium-term Notes of Metallurgical Corporation of China Ltd. 24 MCC MTN004 102480974 18 March 2024 –19 March 2024 20 March 2024 Exercise Date of Options redeemed by the issuer, with the first exercise date on 20 March 2027 20 2.74 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No 2024 Fifth Tranche of Medium-term Notes of Metallurgical Corporation of China Ltd. 24 MCC MTN005A 102483199 24 July 2024 –25 July 2024 26 July 2024 Exercise Date of Options redeemed by the issuer, with the first exercise date on 26 July 2029 10 2.25 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No
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– 104 – Name of bonds Abbreviation Bond code Issue date Value date Expiry date Outstanding bonds Interest rate Method to pay principal and interests Trading venue Investor suitability arrangements (if any) Trading mechanism Is there any risk of termination of listing and trading (%) 2024 Fifth Tranche of Medium-term Notes of Metallurgical Corporation of China Ltd. 24 MCC MTN005B 102483200 24 July 2024 –25 July 2024 26 July 2024 Exercise Date of Options redeemed by the issuer, with the first exercise date on 26 July 2034 10 2.54 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No 2024 Sixth Tranche of Medium-term Notes of Metallurgical Corporation of China Ltd. 24 MCC MTN006 102483403 7 August 2024 –8 August 2024 9 August 2024 Exercise Date of Options redeemed by the issuer, with the first exercise date on 9 August 2029 20 2.25 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No 2024 Seventh Tranche of Medium-term Notes of Metallurgical Corporation of China Ltd. 24 MCC MTN007 102483477 9 August 2024, 12 August 2024 13 August 2024 Exercise Date of Options redeemed by the issuer, with the first exercise date on 13 August 2034 12 2.75 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No 2024 Eighth Tranche of Medium-term Notes of Metallurgical Corporation of China Ltd. 24 MCC MTN008 102483673 21 August 2024–22 August 2024 23 August 2024 Exercise Date of Options redeemed by the issuer, with the first exercise date on 23 August 2029 20 2.40 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No 2024 Ninth Tranche of Medium-term Notes of Metallurgical Corporation of China Ltd. 24 MCC MTN009 102483722 22 August 2024 –23 August 2024 26 August 2024 Exercise Date of Options redeemed by the issuer, with the first exercise date on 26 August 2027 20 2.28 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No
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– 105 – Name of bonds Abbreviation Bond code Issue date Value date Expiry date Outstanding bonds Interest rate Method to pay principal and interests Trading venue Investor suitability arrangements (if any) Trading mechanism Is there any risk of termination of listing and trading (%) 2024 Tenth Tranche of Medium-term Notes of Metallurgical Corporation of China Ltd. 24 MCC MTN010 102483782 23 August 2024, 26 August 2024 27 August 2024 Exercise Date of Options redeemed by the issuer, with the first exercise date on 27 August 2029 20 2.50 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No 2024 Eleventh Tranche of Medium-term Notes of Metallurgical Corporation of China Ltd. 24 MCC MTN011 102483789 26 August 2024 –27 August 2024 28 August 2024 Exercise Date of Options redeemed by the issuer, with the first exercise date on 28 August 2027 20 2.38 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No 2024 Twelfth Tranche of Medium-term Notes of Metallurgical Corporation of China Ltd. 24 MCC MTN012 102483835 27 August 2024 –28 August 2024 29 August 2024 Exercise Date of Options redeemed by the issuer, with the first exercise date on 29 August 2027 12 2.31 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No 2025 First Tranche of Medium-term Notes of Metallurgical Corporation of China Ltd. 25 MCC MTN001 102580928 3 March 2025 –4 March 2025 5 March 2025 Exercise Date of Options redeemed by the issuer, with the first exercise date on 5 March 2028 20 2.30 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No 2025 Second Tranche of Medium-term Notes of Metallurgical Corporation of China Ltd. 25 MCC MTN002 102581292 20 March 2025 –21 March 2025 24 March 2025 Exercise Date of Options redeemed by the issuer, with the first exercise date on 24 March 2028 20 2.31 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No
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– 106 – Name of bonds Abbreviation Bond code Issue date Value date Expiry date Outstanding bonds Interest rate Method to pay principal and interests Trading venue Investor suitability arrangements (if any) Trading mechanism Is there any risk of termination of listing and trading (%) 2025 Third Tranche of Medium-term Notes of Metallurgical Corporation of China Ltd. 25 MCC MTN003 102581059 12 March 2025 –13 March 2025 14 March 2025 Exercise Date of Options redeemed by the issuer, with the first exercise date on 14 March 2028 20 2.37 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No 2025 Fourth Tranche of Medium-term Notes of Metallurgical Corporation of China Ltd. 25 MCC MTN004 102581350 24 March 2025 –25 March 2025 26 March 2025 Exercise Date of Options redeemed by the issuer, with the first exercise date on 26 March 2028 20 2.27 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No 2025 Fifth Tranche of Medium-term Notes of Metallurgical Corporation of China Ltd. 25 MCC MTN005 102581435 27 March 2025 28 March 2025 Exercise Date of Options redeemed by the issuer, with the first exercise date on 28 March 2028 20 2.25 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No 2025 Sixth Tranche of Medium-term Notes of Metallurgical Corporation of China Ltd. 25 MCC MTN006 102581856 23 April 2025 –24 April 2025 25 April 2025 Exercise Date of Options redeemed by the issuer, with the first exercise date on 25 April 2030 12 2.35 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No 2025 Seventh Tranche of Medium-term Notes of Metallurgical Corporation of China Ltd. 25 MCC MTN007 102581943 27 April 2025 –28 April 2025 29 April 2025 Exercise Date of Options redeemed by the issuer, with the first exercise date on 29 April 2030 20 2.39 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No
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– 107 – Name of bonds Abbreviation Bond code Issue date Value date Expiry date Outstanding bonds Interest rate Method to pay principal and interests Trading venue Investor suitability arrangements (if any) Trading mechanism Is there any risk of termination of listing and trading (%) 2025 Eighth Tranche of Medium-term Notes of Metallurgical Corporation of China Ltd. 25 MCC MTN008 102582141 22 May 2025 –23 May 2025 26 May 2025 Exercise Date of Options redeemed by the issuer, with the first exercise date on 26 May 2028 20 2.07 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No 2025 Ninth Tranche of Medium-term Notes of Metallurgical Corporation of China Ltd. 25 MCC MTN009 102582167 26 May 2025 –27 May 2025 28 May 2025 Exercise Date of Options redeemed by the issuer, with the first exercise date on 28 May 2028 20 2.09 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No 2025 Tenth Tranche of Medium-term Notes of Metallurgical Corporation of China Ltd. 25 MCC MTN010 102582334 9 June 2025 –10 June 2025 11 June 2025 Exercise Date of Options redeemed by the issuer, with the first exercise date on 11 June 2028 8 2.05 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No 2025 Eleventh Tranche of Medium-term Notes of Metallurgical Corporation of China Ltd. 25 MCC MTN011 102583972 17 September 2025 –18 September 2025 19 September 2025 Exercise Date of Options redeemed by the issuer, with the first exercise date on 19 September 2028 20 2.27 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No 2025 Twelfth Tranche of Medium-term Notes of Metallurgical Corporation of China Ltd. 25 MCC MTN012 102584010 19 September 2025, 22 September 2025 23 September 2025 Exercise Date of Options redeemed by the issuer, with the first exercise date on 23 September 2028 20 2.26 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No
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– 108 – Name of bonds Abbreviation Bond code Issue date Value date Expiry date Outstanding bonds Interest rate Method to pay principal and interests Trading venue Investor suitability arrangements (if any) Trading mechanism Is there any risk of termination of listing and trading (%) 2025 Thirteenth Tranche of Medium-term Notes of Metallurgical Corporation of China Ltd. 25 MCC MTN013 102584408 22 October 2025 –23 October 2025 24 October 2025 Exercise Date of Options redeemed by the issuer, with the first exercise date on 24 October 2028 13 2.26 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No 2025 Fourteenth Tranche of Medium-term Notes of Metallurgical Corporation of China Ltd. 25 MCC MTN014 102584982 25 November 2025 26 November 2025 Exercise Date of Options redeemed by the issuer, with the first exercise date on 26 November 2030 20 2.48 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No 2025 Fifteenth Tranche of Medium-term Notes of Metallurgical Corporation of China Ltd. 25 MCC MTN015A 102585012 26 November 2025 27 November 2025 Exercise Date of Options redeemed by the issuer, with the first exercise date on 27 November 2028 16 2.25 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No 2025 Fifteenth Tranche of Medium-term Notes of Metallurgical Corporation of China Ltd. 25 MCC MTN015B 102585013 26 November 2025 27 November 2025 Exercise Date of Options redeemed by the issuer, with the first exercise date on 27 November 2030 9 2.50 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No
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– 109 – Name of bonds Abbreviation Bond code Issue date Value date Expiry date Outstanding bonds Interest rate Method to pay principal and interests Trading venue Investor suitability arrangements (if any) Trading mechanism Is there any risk of termination of listing and trading (%) 2025 Sixteenth Tranche of Medium-term Notes of Metallurgical Corporation of China Ltd. 25 MCC MTN016 102585064 1 December 2025 2 December 2025 Exercise Date of Options redeemed by the issuer, with the first exercise date on 2 December 2030 20 2.55 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No 2026 First Tranche of Medium-term Notes of Metallurgical Corporation of China Ltd. 26 MCC MTN001 102683404 26 August 2026 27 August 2026 Exercise Date of Options redeemed by the issuer, with the first exercise date on 27 August 2029 20 1.78 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No 2026 Second Tranche of Mediumterm Notes of Metallurgical Corporation of China Ltd. 26 MCC MTN002 102683422 27 August 2026 28 August 2026 Exercise Date of Options redeemed by the issuer, with the first exercise date on 28 August 2029 20 1.80 Interests payable per annum, and principal and interest payable upon maturity China Interbank Bond Market – Bidding transaction No
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– 110 – XV. COMPLIANCE WITH CORPORATE GOVERNANCE CODE During the Reporting Period, the Company continued to strictly follow the relevant laws and regulations, including the Company Law, Securities Law, and the regulations of securities regulatory authorities, while further strengthening the governance system and standard operations of the Company. As an important part of the corporate governance structure, the Board of Directors gives full play to its duties of “setting strategies, making decisions and preventing risks”. Centring on six dimensions including scientific framework building, rational decision-making, efficient operation, team building, competency enhancement and cultural guidance, the Board continuously improves governance effectiveness. Faced with a complex and volatile market environment, the Board of Directors seizes development opportunities with a strategic vision, makes scientific business layout, vigorously promotes reform and innovation, firmly holds the risk bottom line, and effectively safeguards the steady development of the Company. Each Shareholders’ meeting and Board meeting is convened in accordance with the relevant requirements of the Company Law and the Articles of Association. During the Reporting Period, the Company convened 3 Shareholders’ meetings, 6 Board meetings, and 10 meetings of special committees of the Board. The Company has adopted the Model Code as the code governing the dealings in the Company’s securities by the Directors. Having made specific enquiries with all the Directors, the Company is of the view that all Directors fully complied with the Model Code and requirements set out thereof during the six months ended 30 June 2026. During the Reporting Period, save for code provision B.2.2 of the Corporate Governance Code, the Company strictly adhered to the principles and provisions outlined in the Corporate Governance Code and, where applicable, adopted the recommended best practices. In accordance with the code provision B.2.2 of the Corporate Governance Code, each Director shall retire by rotation at least once every three years. The term of the third session of the Board has exceeded three years. In accordance with the Articles of Association, members of the third session of the Board shall continue to perform duties until the establishment of the fourth session of the Board. The Company established its fourth session of the Board on 13 August 2026. The Company will continue to review and monitor its corporate governance practice to ensure compliance with the latest measures and standards set out in the Corporate Governance Code.
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– 111 – During the Reporting Period, due to important official duties, three independent non-e xecutive Directors did not attend the first extraordinary general meeting of 2026 held by the Company on 16 January 2026, independent non-executive Directors Mr. Ng, Kar Ling Johnny and Ms. Zhou Guoping did not attend the 2026 second extraordinary shareholders’ meeting of the Company held on 8 May 2026, and independent non-executive Directors Mr. Liu Li and Mr. Ng, Kar Ling Johnny did not attend the Company’s 2025 annual general meeting held on 29 June 2026. The Board considers that the absent independent non-executive Directors had reviewed the meeting documents in advance and thoroughly, fully understood the contents of all proposals. The Company’s daily operations and management are fully handled by the executive Directors and the management team. Therefore, such temporary absence does not have a material adverse impact on the corporate governance of the Company. XVI. COMPLIANCE WITH THE MODEL CODE BY DIRECTORS The Company has adopted the Model Code as set out in Appendix C3 to the Hong Kong Listing Rules as the code governing the dealings in the Company’s securities by the Directors. Having made specific enquiries with all the Directors, all the Directors confirmed that they themselves and their respective associates had fully complied with the required standards provided for in the above Model Code during the Reporting Period. XVII. REVIEW ON INTERIM RESULTS BY THE AUDIT COMMITTEE The audit committee has reviewed the unaudited interim results of the Company for the six months ended 30 June 2026. The committee was of the opinion that the unaudited interim results for the six months ended 30 June 2026 had been in compliance with the applicable accounting principles as well as laws and regulations, and proper disclosures had been made. XVIII. PUBLICATION OF INTERIM REPORT The interim report of the Company for the six months ended 30 June 2026 will be available on the website of the Hong Kong Stock Exchange (www.hkexnews.hk) and the Company’s website (http://www.mccchina.com) in mid to late September 2026 for Shareholders’ reference.
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– 112 – XIX. DEFINITIONS AND GLOSSARY OF TECHNICAL TERMS In this announcement, unless the context otherwise requires, the following expressions have the meanings as follows: “Articles of Association” the articles of association of Metallurgical Corporation of China Ltd.* “A Share Listing Rules” the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange “A Share(s)” the domestic shares with a nominal value of RMB1.00 each in the ordinary share capital of the Company, which are listed on the SSE and traded in RMB “Board” the board of Directors of Metallurgical Corporation of China Ltd.* “China Huaye” China Huaye Group Co., Ltd.* “CIE” Zhongye Changtian International Engineering Co., Ltd. “CISDI” CISDI Group Co., Ltd. “CMGC” China Metallurgical Group Corporation “Controlling Shareholder” or “China Minmetals” China Minmetals Corporation “connected person(s)” connected party/parties under A Share Listing Rules and connected person(s) under the H Share Listing Rules “Company” or “MCC” Metallurgical Corporation of China Ltd.* “Corporate Governance Code” the Corporate Governance Code set out in Appendix C1 to the Hong Kong Listing Rules “CSRC” the China Securities Regulatory Commission
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– 113 – “Director(s)” the director(s) of the Company, including all executive, non-executive and independent non-executive Directors “Five-Five strategy” the Company’s strategic goal of medium- and long-term business restructuring, namely, to channel resources to its advantageous business segments and drive transformation toward quality and efficiency, further raise the proportion contributed by core businesses, industrial construction and featured businesses to over 50%, help the infrastructure business pursuing high-end development, and adjust the proportion of infrastructure business to below 50%. “Goals for ‘one building, two most, five strong’” the goals established by the Company refers to creating a world-class enterprise with global competitiveness as the guiding principle; building the best full-service solution provider for metallurgical construction and operation with super core competitiveness, the most reliable general contractor in Two New Construction with global reputation and domestic leading position as the target; its efforts to build a worldclass investment and construction group with strong value creation, market competitiveness, innovative driving force, resource allocation and cultural soft power “Hong Kong Stock Exchange” The Stock Exchange of Hong Kong Limited “HKD” Hong Kong dollars, the lawful currency of Hong Kong “H Share(s)” the overseas listed foreign invested shares with a nominal value of RMB1.00 each in the ordinary share capital of the Company, which are listed on the Hong Kong Stock Exchange and traded in HKD
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– 114 – “Independent Director” or “Independent Non-executive Director” a Director who does not hold any position other than that of Director in the Company and does not have any direct or indirect interest in the Company, its major Shareholders or de facto controllers, or any other Director who may influence him/her to render independent and objective judgement “Listing Rules of the Hong Kong Stock Exchange”, “H Share Listing Rules” or “Hong Kong Listing Rules” the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited “MCC Capital” MCC Capital Engineering & Research Incorporation Limited “MCC20” China MCC20 Group Corp. Ltd. “MCC Duddar” MCC Huaye Duddar Mining Company (Pvt) Limited “MCC Ecological Environmental Protection” MCC Ecological Environmental Protection Group Co., Ltd. “MCC-JJJ Mining” MCC-JJJ Mining Development Company Limited* “MCC Ramu” Ramu NiCo Management (MCC) Limited “MCC Real Estate” MCC Real Estate Group Co., Ltd. “MCC Tongsin Resources” MCC Tongsin Resources Limited “Minmetals Land Holdings” Minmetals Land Holdings Co., Ltd.* now renamed Minmetals Real Estate Group Co., Ltd. “Model Code” the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 to the Hong Kong Listing Rules “Non-ferrous Engineering” China Non-ferrous Engineering Co., Ltd.* “Renminbi” or “RMB” Renminbi, the lawful currency of the PRC
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– 115 – “Reporting Period” from 1 January 2026 to 30 June 2026 “SASAC” the State-owned Assets Supervision and Administration Commission of the State Council “SFO” or “Securities and Futures Ordinance” the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong), as amended, supplemented or otherwise modified from time to time “Shareholder(s)” holder(s) of share(s) of the Company “Shareholders’ meeting(s)” the general meeting(s) of Metallurgical Corporation of China Ltd.* “Six Networks Construction” the construction of urban underground pipeline networks, water networks, new-type power grids, computing power networks, next-generation communication networks, and logistics networks “SSE” the Shanghai Stock Exchange “State Council” the State Council of the People’s Republic of China “Two New Construction” the construction of new industrialization and new urbanization “USD” United States dollars, the lawful currency of the United States “WISDRI” WISDRI Engineering & Research Incorporation Limited The forward-looking statements contained in this announcement including the Company’s future plans do not constitute any substantive commitment to investors by the Company, and investors are reminded of investment risks. The 2026 interim financial statement of the Company has been reviewed by Deloitte Touche Tohmatsu Certified Public Accountants LLP, but has not been audited. Deloitte Touche Tohmatsu Certified Public Accountants LLP has issued the review report for the Company without a qualified opinion.
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– 116 – Unless otherwise specified, all the amounts in this announcement are denominated in RMB. By order of the Board Metallurgical Corporation of China Ltd.* Chang Qi Joint Company Secretary Beijing, the PRC 28 August 2026 As at the date of this announcement, the Board comprises executive directors: Mr. Li Zhongze and Mr. Chen Yang; employee representative director: Mr. Yan Aizhong; non-executive directors: Mr. Zhang Shuqiang, Mr. Peng Haiqing and Mr. Peng Peng; and independent non-executive directors: Ms. Zhou Guoping, Mr. Chen Shenghua and Mr. Ng Kit Chong. * For identification purposes only