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. XINGDA INTERNATIONAL HOLDINGS LIMITED (incorporated in the Cayman Islands with limited liability) (Stock Code: 01899) INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2026 FINANCIAL HIGHLIGHTS Six months ended 30 June 2026 2025 (unaudited) (unaudited) RMB in Million RMB in Million CHANGE Revenue 5,778.5 5,664.3 +2.0% Gross profit 1,122.6 1,121.1 +0.1% Gross profit margin 19.4% 19.8% -0.4pp EBITDA (Note) 662.6 941.1 -29.6% Profit attributable to owners of the Company 65.0 198.9 -67.3% Earnings per share – basic (RMB cents) Earnings per share – diluted (RMB cents) 3.39 3.37 10.37 10.30 -67.3% -67.3% Note: It is arrived at profit before finance costs, income tax expense, depreciation and amortisation.
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2 INTERIM RESULTS The board of directors (the “Board”) of Xingda International Holdings Limited (the “Company”) is pleased to announce the condensed consolidated financial statements of the Company and its subsidiaries (the “Group” or "Xingda”) for the six months ended 30 June 2026 (the “Period”) together with the comparative figures as follows: CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 30 JUNE 2026 Six months ended 30 June NOTES 2026 2025 (unaudited) (unaudited) RMB’000 RMB’000 Revenue 3 5,778,460 5,664,267 Cost of sales (4,655,833) (4,543,157) － － － － － － － － － － － － － － － － Gross profit 1,122,627 1,121,110 Other income 57,731 90,887 Other expense (1,927) (1,020) Government grants 13,589 18,597 Distribution and selling expenses (523,738) (505,965) Administrative expenses (188,903) (192,616) Other gains and losses, net 4 (138,414) 97,240 Impairment loss on financial assets (10,808) (10,682) Research and development expenditure (151,464) (145,966) Finance costs 5 (85,483) (113,408) － － － － － － － － － － － － － － － － Profit before tax 93,210 358,177 Income tax expense 6 (11,915) (74,960) － － － － － － － － － － － － － － － － Profit for the period 7 81,295 283,217 Other comprehensive (expense) income item that may be reclassified subsequently to profit or loss: Exchange difference arising on translation of foreign operations (72,012) 21,284 － － － － － － － － － － － － － － － － Total comprehensive income for the period 9,283 304,501 = = = = = = = = = = = = = = = = = = = = = = = = = = Profit for the period attributable to: Owners of the Company 64,973 198,921 Non-controlling interests 16,322 84,296 － － － － － － － － － － － － － － － － 81,295 283,217 = = = = = = = = = = = = = = = = = = = = = = = = = =
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3 Total comprehensive income for the period attributable to: Owners of the Company 11,528 213,898 Non-controlling interests (2,245) 90,603 － － － － － － － － － － － － － － － － 9,283 304,501 = = = = = = = = = = = = = = = = = = = = = = = = = = Earnings per share 9 -Basic (RMB cents) 3.39 10.37 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = -Diluted (RMB cents) 3.37 10.30 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =
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4 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 30 JUNE 2026 As at As at 30 June 31 December NOTES 2026 2025 (unaudited) (audited) NON-CURRENT ASSETS RMB’000 RMB’000 Property, plant and equipment 7,854,667 8,080,406 Right-of-use assets 632,985 641,305 Freehold land 174,793 190,433 Investment properties 97,000 97,000 Term deposits Deferred tax assets 1,248,406 163,191 759,199 150,349 Prepayments for acquisition of property, plant and equipment 63,262 34,578 Other prepayments 8,110 9,707 － － － － － － － － － － － － － － － － － 10,242,414 9,962,977 － － － － － － － － － － － － － － － － － CURRENT ASSETS Inventories 1,423,088 1,316,066 Financial assets at fair value through profit or loss ("FVTPL") 90,452 106,332 Trade, bills and other receivables 10 7,840,608 7,590,471 Tax recoverable 752 3,876 Term deposits 219,080 1,058,740 Bank balances and cash 1,199,792 1,155,232 － － － － － － － － － － － － － － － － － 10,773,772 11,230,717 － － － － － － － － － － － － － － － － － CURRENT LIABILITIES Trade, bills and other payables 11 4,555,695 4,432,789 Contract liabilities 48,481 50,627 Tax liabilities 54,080 75,187 Dividend payable 13,284 23,226 Borrowings 5,859,240 5,892,198 Deferred income Lease liabilities 26,004 237 — 270 － － － － － － － － － － － － － － － － － 10,557,021 10,474,297 － － － － － － － － － － － － － － － － － NET CURRENT ASSETS 216,751 756,420 － － － － － － － － － － － － － － － － － TOTAL ASSETS LESS CURRENT LIABILITIES 10,459,165 10,719,397 － － － － － － － － － － － － － － － － －
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5 As at As at 30 June 31 December NOTE 2026 2025 (unaudited) (audited) NON-CURRENT LIABILITIES RMB’000 RMB’000 Deferred tax liabilities 31,382 81,071 Borrowings 1,961,280 1,528,635 Deferred income 204,625 241,644 Lease liabilities 18 125 － － － － － － － － － － － － － － － － － 2,197,305 1,851,475 － － － － － － － － － － － － － － － － － NET ASSETS 8,261,860 8,867,922 =============== ============= CAPITAL AND RESERVES Share capital 12 186,603 186,603 Share premium and other reserves 6,031,106 6,460,457 － － － － － － － － － － － － － － － － － － Equity attributable to owners of the Company 6,217,709 6,647,060 Non-controlling interests 2,044,151 2,220,862 － － － － － － － － － － － － － － － － － － TOTAL EQUITY 8,261,860 8,867,922 =============== ===============
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6 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 30 JUNE 2026 Six months ended 30 June 2026 2025 (unaudited) (unaudited) RMB’000 RMB’000 NET CASH FROM OPERATING ACTIVITIES 313,626 1,009,072 － － － － － － － － － － － － － － INVESTING ACTIVITIES Purchases of property, plant and equipment (474,679) (786,289) Placement of term deposits (545,857) (445,803) Withdrawal of term deposits Interest received Receipts of assets-related government grants 845,108 71,145 2,000 1,200,010 109,308 — Dividend received from financial assets at FVTPL — 7,755 Repayment from a shareholder 98,921 — Proceeds on disposal of property, plant and equipment 10,964 3,651 － － － － － － － － － － － － － － NET CASH FROM INVESTING ACTIVITIES 7,602 88,632 － － － － － － － － － － － － － － FINANCING ACTIVITIES New borrowings raised 4,040,831 5,010,002 Repayments of borrowings (3,590,469) (4,773,237) Dividend paid (615,356) (353,337) Interest paid (87,648) (104,882) Repurchase of shares (10,441) — Repayments of lease liabilities (147) (147) Consideration paid to settle the obligations arising from repurchase of shares Repurchase shares of a subsidiary from non-controlling interests — — (223,944) (183,517) － － － － － － － － － － － － － － NET CASH USED IN FINANCING ACTIVITIES (263,230) (629,062) － － － － － － － － － － － － － － NET INCREASE IN CASH AND CASH EQUIV ALENTS 57,998 468,642 － － － － － － － － － － － － － － CASH AND CASH EQUIV ALENTS AT 1 JANUARY, 1,155,232 835,591 Effect of foreign exchange rate changes (13,438) 2,831 － － － － － － － － － － － － － － CASH AND CASH EQUIV ALENTS AT 30 JUNE, 1,199,792 ======== 1,307,064 ============ represented by bank balances and cash 1,199,792 1,307,064 =========== ============
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7 NOTES: 1. BASIS OF PREPARATION The condensed consolidated financial statements have been prepared in accordance with International Accounting Standard 34 ("IAS 34") Interim Financial Reporting issued by the International Accounting Standards Board (the "IASB") as well as the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. 2. ACCOUNTING POLICIES The condensed consolidated financial statements have been prepared on the historical cost basis except for certain properties and financial instruments, which are measured at fair values, as appropriate. Other than change in accounting policies resulting from application of amendments to IFRS Accounting Standards , the accounting policies and methods of computation used in the condensed consolidated financial statements for the six months ended 30 June 202 6 are the same as those presented in the Group 's annual financial statements for the year ended 31 December 2025. Application of amendments to IFRS Accounting Standards In the current interim period, the Group has applied the following amendments to IFRS Accounting Standards issued by the IASB, for the first time, which are mandatory effective for the Group's annual period beginning on 1 January 2026 for the preparation of the Group's condensed consolidated financial statements: Amendments to IFRS 9 and IFRS 7 Amendments to the Classification and Measurement of Financial Instruments Amendments to IFRS 9 and IFRS 7 Contracts Referencing Nature-dependent Electricity Amendments to IFRS Accounting Annual Improvements to IFRS Accounting Standards Standards - V olume 11 The application of the amendments to an IFRS Accounting Standard s in the current interim period has had no material impact on the Group's financial positions and performance for the current and prior periods and/or on the disclosures set out in these condensed consolidated financial statements.
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8 3. REVENUE AND SEGMENT INFORMATION Disaggregation of revenue from contracts with customers The following is an analysis of the Group's revenue from its major products: Six months ended 30 June 2026 2025 (unaudited) (unaudited) RMB’000 RMB’000 Sales of products Radial tire cords - For trucks 3,339,160 3,145,841 - For passenger cars 1,677,480 1,774,738 Bead wires Hose wires and other wires 392,442 369,378 356,455 387,233 －－－－－－－－ － － － － － － － 5,778,460 5,664,267 = = = = = = = = = = = = = = = = = = = = = = = = = Timing of revenue recognition A point in time 5,778,460 5,664,267 == = = = = = = = = = = = = == = = = = = = = = = = The contracts for sales of goods to external customers are short -term and the contract prices are fixed. The Group's customers were mainly tyre manufacturers in the PRC and other countries. Segment information The directors of the Company, being the chief operating decision maker of the Group, regularly review revenue analysis by types of products which are basically radial tire cords, bead wires and other wires, for the purposes of resource allocation and asses sment of performance. However, other than revenue analysis, no operating results or other discrete financial information is available for the assessment of performance of the respective types of products. The directors of the Company review the operating results of the Group as a whole to make decisions about resource allocation. The operation of the Group constitutes one single operating and reportable segment under IFRS 8 Operating Segments and accordingly no separate segment information is prepared. The information about its non-current assets (other than deferred tax assets and term deposits) by geographical locations of the assets is set out as below:
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9 As at 30 June 2026 As at 31 December 2025 (unaudited) (audited) RMB’000 RMB’000 The PRC 7,581,477 7,693,702 Thailand 1,249,340 1,359,727 － － － － － － － － － － － － － － － 8,830,817 9,053,429 ============= ============ Geographical information Information about the Group's revenue from operations and arising from external customers is presented based on the location of the goods delivered. Six months ended 30 June 2026 2025 (unaudited) (unaudited) RMB’000 RMB’000 The PRC (country of domicile) 3,902,910 3,596,685 India United States of America Thailand 281,146 260,657 211,026 293,383 234,799 231,663 Brazil 131,986 210,233 Slovakia 118,020 129,775 Korea 83,852 105,856 Turkey Romania 70,848 68,414 58,611 102,542 Others 649,601 700,720 － － － － － － － － － － － － － － － 5,778,460 5,664,267 ============= ============ “Others” included revenue from other various countries, each of which is individually less than 10% of the Group’s total revenue. No customer contributes over 10% of the total revenue of the Group for the six months ended 30 June 2026 and 2025.
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10 4. OTHER GAINS AND LOSSES, NET Six months ended 30 June 2026 2025 (unaudited) (unaudited) RMB’000 RMB’000 Net foreign exchange (loss) gain (128,659) 86,621 (Loss) gain on change in fair value of financial assets at FVTPL (15,880) 2,416 Loss on written off and disposal of property, plant and equipment Dividend income from financial assets at FVTPL (429) 6,554 (47) 8,250 － － － － － － － － － － － － － － － (138,414) 97,240 ============= ============ 5. FINANCE COSTS Six months ended 30 June 2026 2025 (unaudited) (unaudited) RMB’000 RMB’000 Interests on: Bank borrowings 84,027 104,099 Bills receivable discounted Lease liabilities 1,449 7 1,963 13 Imputed interest on obligations arising from repurchase of shares (Note) — 7,333 － － － － － － － － － － － － － － － 85,483 113,408 ============= ============ No borrowing costs were capitalised during the six months ended 30 June 2026 and 2025. Note: On 16 December 2020, Jiangsu Xingda Steel Tyre Cord Co., Ltd* ( 江蘇興達鋼簾線 股份有限公司 ) (“Jiangsu Xingda ”), the Company ’s non -wholly owned subsidiary, entered into capital increase agreements with strategic investors containing a share repurchase arrangement granted to the investors at a repurchase consideration as investment principal plus 8% imputed interest per annum. During the period ended 30 June 2025, the investors exercised the repurchase option and respective obligations were derecognised in full as at 30 June 2025.
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11 6. INCOME TAX EXPENSE Six months ended 30 June 2026 2025 (unaudited) (unaudited) RMB’000 RMB’000 Current tax 34,430 54,123 Overprovision in prior years (10,958) (12,004) Withholding tax 50,974 31,017 Deferred tax (62,531) 1,824 － － － － － － － － － － － － － － － 11,915 74,960 ============= ============ The tax charge represents income tax in the PRC which is calculated at the prevailing tax rate prevailing on the taxable income of the group entities in the PRC. Under the Law of the PRC on Enterprise Income Tax (the "EIT Law") and Implementation Regulations of the EIT Law, the tax rate for certain PRC subsidiaries is 25% except for Jiangsu Xingda as further described below. Jiangsu Xingda is qualified as High-tech Enterprise and enjoyed preferential tax rate of 15% throughout the effective period of High-tech Enterprise Certificate till 2026. No provision for taxation in Hong Kong has been made as the Group's income neither arises in, nor is derived from, Hong Kong for both periods. Taxation arising in other jurisdictions is calculated at the rates prevailing in the relevant jurisdictions. The Group is operating in certain jurisdictions (i.e., Thailand, Luxembourg and Hong Kong) where Global Anti‑Base Erosion Rules (the "Pillar Two Rules") are in effect. However, based on management’s best estimate and after considering certain adjustments required under the Pillar Two Rules, the Group’s estimated (i) effective tax rate in Hong Kong exceeds 15%, (ii) group entity in Thailand applied safe harbour provisions during this interim period, and (iii) group entity in Luxembourg is not with assessment profit during this interim period and is not significantly exposed to top-up tax under Pillar Two Rules. Accordingly, the management of the Group did not recognise any top-up tax under the Pillar Two Rules during the period ended 30 June 2026.
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12 7. PROFIT FOR THE PERIOD Profit for the period has been arrived at after charging: Six months ended 30 June 2026 2025 (unaudited) (unaudited) RMB’000 RMB’000 Staff cost, including directors’ remuneration Salaries, wages and other benefits 546,239 559,135 Retirement benefits scheme contributions 51,282 40,729 Share-based payments 510 1,101 － － － － － － － － － － － － － － － Total staff costs 598,031 600,965 = = = = = = = = = = = = = = = = = = = = = = = = = = Depreciation and amortisation - Property, plant and equipment 475,606 461,738 - Right-of-use assets 8,320 7,802 － － － － － － － － － － － － － － － Total depreciation and amortisation 483,926 469,540 = = = = = = = = = = = = = = = = = = = = = = = = = 8. DIVIDENDS Six months ended 30 June 2026 2025 (unaudited) (unaudited) RMB’000 RMB’000 Special dividend - 25.0 HK cents per share (2025: 15.0 HK cents per share) 430,948 265,136 = = = = = = = = = = = = = = = = = = = = = = = = = = During the current interim period, one-off special dividend of 25.0 HK cents (2025: a one-off special dividend of 15.0 HK cents) per ordinary share in an aggregate amount of approximately RMB430,948,000 (2025: RMB265,136,000) has been approved at the extraordinary general meeting held on 20 January 2026 (2025: at the extraordinary general meeting of the Company held on 27 January 2025). The board of directors has determined that no dividend will be paid for both interim periods.
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13 9. EARNINGS PER SHARE The calculation of the basic and diluted earnings per share attributable to the owners of the Company is based on the following data: Six months ended 30 June 2026 2025 (unaudited) (unaudited) RMB’000 RMB’000 Earnings Earnings for the period attributable to owners of the Company 64,973 198,921 = = = = = = = = = = = = = = = = = = = = = = = = = = Six months ended 30 June 2026 (unaudited) ’000 2025 (unaudited) ’000 Number of shares Weighted average number of ordinary shares for the purpose of calculating basic earnings per share 1,915,665 1,917,986 Effect of dilutive potential ordinary shares in respect of outstanding share awards 12,928 13,048 － － － － － － － － － － － － － － － Weighted average number of ordinary shares for the purpose of diluted earnings per share 1,928,593 1,931,034 = = = = = = = = = = = = = = = = = = = = = = = = = = The weighted average number of ordinary shares shown above to calculate basic and dilutive earnings per share has been arrived at after deducting shares held by share award scheme trust . Besides, effect of dilutive potential ordinary shares in respect of outstanding share awards is also accounted for to calculate dilutive earnings per share.
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14 10. TRADE, BILLS AND OTHER RECEIV ABLES As at As at 30 June 31 December 2026 2025 (unaudited) (audited) RMB’000 RMB’000 Trade receivables – goods Less: Allowance for credit losses 4,565,991 (79,085) － － － － － － － － 4,486,906 4,349,288 (76,129) － － － － － － － － 4,273,159 － － － － － － － － － － － － － － － Bills receivables 3,117,154 2,921,337 Less: Allowance for credit losses (1,950) (1,950) － － － － － － － － － － － － － － － 3,115,204 2,919,387 － － － － － － － － － － － － － － － 7,602,110 7,192,546 － － － － － － － － － － － － － － － Advances to suppliers of raw materials Prepayments for spool 24,859 20,232 33,968 19,125 Value-added tax receivable 142,071 203,454 Other receivables 47,583 33,347 Less: Allowance for credit losses on other receivables (13,114) (5,262) Other prepayments 16,867 12,872 Amount due from a shareholder (Note) —— 100,421 － － － － － － － － － － － － － － － 238,498 397,925 － － － － － － － － － － － － － － － 7,840,608 7,590,471 = = = = = = = = = = = = = = = = = = = = = = = = = = Note: On 13 November 2025, Great Trade Limited, one of the controlling shareholders of the Group, borrowed Hong Kong Dollars (“HKD”) 110 million loan from the Group, that is unsecured, matured within one year and at interest of 8% per annum. During the period ended 30 June 2026, interest income amounting to RMB2,161,000 was recognised as “other income”. In April 2026, the loan was repaid by Great Trade Limited of HKD110 million (equivalent to RMB98,921,000) as well as the interest accrual. The following is an aged analysis of trade and bills receivables, net of allowance for credit losses, presented based on the invoice date at the end of the reporting period which approximated the revenue recognition date:
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15 As at As at 30 June 31 December 2026 2025 (unaudited) (audited) RMB’000 RMB’000 Trade receivables 0 - 90 days 2,909,747 2,796,567 91 - 120 days 472,661 446,873 121 - 180 days 350,471 315,408 181 - 360 days Over 360 days 631,792 122,235 580,629 133,682 － － － － － － － － － － － － － － － 4,486,906 4,273,159 = = = = = = = = = = = = = = = = = = = = = = = = = = Bills receivables 0 - 90 days 252,994 268,263 91 - 180 days 1,333,638 1,339,037 181 - 360 days 1,482,799 1,291,220 Over 360 days 45,773 20,867 － － － － － － － － － － － － － － － － 3,115,204 2,919,387 = = = = = = = = = = = = = = = = = = = = = = = = = = The Group has a policy of allowing an average credit period of 90 to 120 days to its trade customers and the Group allows domestic customers to pay bills or letter of credit to settle the trade receivables. As at 30 June 2026, total bills received amounting to RMB2,695,556,000 (31 December 2025: RMB2,823,516,000) are held by the Group for future settlement of trade receivables , and were further discounted/endorsed by the Group. The Group continues to recognise their full carrying amounts at the end of the reporting period. Bills receivable and letter of credit received by the Group are with a maturity period of less than one year. The basis of determining the inputs and assumptions and the estimation techniques for impairment assessment under expected credit loss model used in the condensed consolidated financial statements for the six months ended 30 June 2026 are the same as those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2025. During the current interim period, the Group has recognised impairment loss under expected credit loss model of RMB 10,808,000 (for the six months ended 30 June 2025: RMB10,682,000).
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16 11. TRADE, BILLS AND OTHER PAYABLES As at As at 30 June 31 December 2026 20245 (unaudited) (audited) RMB’000 RMB’000 Trade payables 2,951,394 2,708,701 Bills payables (Note) 507,545 486,900 － － － － － － － － － － － － － － － 3,458,939 3,195,601 － － － － － － － － － － － － － － － Value-added tax payables and other tax payables 38,671 36,284 Accrued staff costs and pension 188,073 276,327 Payables for purchase of property, plant and equipment 664,838 753,618 Amount due to a related party 8,740 9,622 Accrued expenses Other payable to a non-controlling shareholder 135,765 20 105,937 20 Others 60,649 55,380 － － － － － － － － － － － － － － － 1,096,756 1,237,188 － － － － － － － － － － － － － － － 4,555,695 4,432,789 = = = = = = = = = = = = = = = = = = = = = = = = = = Note: These relate to trade payables in which the Group has issued bills to the relevant suppliers for settlement of trade payables. The suppliers can obtain the invoice amounts from the bank on the maturity date of the bills. The Group continues to recognise the obligation to suppliers on the condensed consolidated financial statements as the Group is obliged to make payments to the relevant banks on due dates of the bills, under the same conditions as agreed with the suppliers without further extension. In the condensed consolidated statement of cash flows, settlements of these bills by the Group are included within operating cash flows based on the nature of the arrangements.
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17 The following is an aged analysis of trade and bills payables presented based on the transaction date at the end of the reporting period: As at As at 30 June 31 December 2026 2025 (unaudited) (audited) RMB’000 RMB’000 Trade payables 0 - 90 days 1,916,478 1,809,357 91 - 180 days 763,280 642,617 181 - 360 days 191,599 188,300 Over 360 days 80,037 68,427 － － － － － － － － － － － － － － － 2,951,394 2,708,701 = = = = = = = = = = = = = = = = = = = = = = = = = = Bills payables 91 - 180 days 507,545 486,900 = = = = = = = = = = = = = = = = = = = = = = = = = = The average credit period on purchase of goods is 90 days which may be extended to 120 days or 180 days based on negotiation with the suppliers. The Group has financial risk management policies in place to ensure that all payables are settled within the cr edit timeframe. 12. SHARE CAPITAL Number of shares Share capital 30 June 2026 31 December 2025 30 June 2026 31 December 2025 '000 '000 RMB’000 RMB’000 Authorised: (unaudited) (audited) (unaudited) (audited) 3 billion ordinary shares of HK$0.1 each 3,000,000 3,000,000 301,410 301,410 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = Issued and fully paid: At beginning and end of period/year 1,920,125 1,920,125 186,603 186,603 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = During the current interim period, the Company instructed a trustee to repurchase 10,000,000 ordinary shares from the second market for share-award scheme purpose with consideration of RMB10,441,000. As at 30 June 2026, included the issued and fully paid ordinary shares, 12,139,665 shares are held by trustee under share -award scheme (31 December 2025: 2,139,665 shares).
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18 MANAGEMENT DISCUSSION AND ANALYSIS Xingda International Holdings Limited (the "Company") and its subsidiaries (collectively the "Group" or "Xingda") are pleased to present the unaudited interim results of the Group for the six months ended 30 June 2026 (the “review period”). For the six months ended 30 June 2026, the Group recorded revenue of RMB 5,778.5 million, representing a year -on-year increase of 2.0% (first half of 2025: RMB 5,664.3 million ). Gross profit increased by 0.1% year-on-year to RMB1,122.6 million (first half of 202 5: RMB1,121.1 million) and gross profit margin dropped by 0.4 percentage point compared to the same period last year to 19.4% (first half of 202 5: 19.8%). Profit attributable to the owners of the Company decreased by 67.3% year-on-year to RMB65.0 million (first half of 202 5: RMB198.9 million). Basic earnings per share were RMB 3.39 cents (first half of 202 5: RMB10.37 cents). The Board of Directors did not recommend any interim dividend for the six months ended 30 June 2026. INDUSTRY OVERVIEW In the first half of 2026, the Chinese economy demonstrated resilience against a complex domestic and international environment. According to data from the National Bureau of Statistics, the Gross Domestic Product (GDP) increased by 5.0% in the first quarter and 4.3% in the second quarter, reflecting a trend of quarterly deceleration in growth. In terms of consumption , total retail sales of consumer goods increased by only 1.3% year -on-year, with retail sales of goods growing by merely 1.1% in the first half, indicating insufficient momentum on the consumption side and a still-weak domestic demand recovery. In terms of policy, during the first half of 2026, large -scale equipment renewal and trade -in programs for consumer goods continued to be optimized . The RMB200 billion of ultra -long special treasury bonds for “renewal and trade -in programs” has been fully allocated. “Renewal and trade-in programs” has cumulatively driven RMB1.1 trillion in goods sales, of which 3.707 million vehicles were traded under the program. However, since the second quarter, consumption momentum has visibly weakened due to the overdraft effect of the program and insufficient consumer confidence. In May 2026, total retail sales of consumer goods declined by 0.6% year- on-year, marking the first monthly negative growth since December 2022. The contradiction between “strong supply and weak demand” remains particularly apparent. Major consumer goods including automobile remain under persistent pressure, and the radial tire cords industry has also been affected by demand fluctuations.
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19 The automotive industry, as the core downstream sector for radial tire cords, exhibited a marked divergence between“weak domestic demand and robust exports”in the first half. According to data from the China Association of Automobile Manufacturers, China's automobile production and sales in the first half of 2026 reached 14.993 million and 15.017 million units respectively, representing year-on-year declines of 4% and 4.1%. Although domestic demand showed weak recovery, automotive exports still grew beyond expectations. In June, monthly vehicle exports exceeded the one -million mark for the first time, reaching 1.037 million units, a year -on-year surge of 75.1%. For the first half, vehicle exports reached 5.096 million units, a 65.3% increase year-on-year, with new energy vehicle exports accounting for 2.355 million units, representing over 46% of total vehicle exports and serving as a key driver of export growth. The tire industry, as the direct downstream sector for radial tire cords, exhibited two distinct trends in the first half, characterized by “steady growth in production” and “increasing volumes but falling prices in export.” According to data from the National Bureau of Statistics, the production of rubber tires reached 607.362 million in the first half, representing a year -on-year increase of 2.0%. The data from China Customs shows that rubber tire exports reached 4.94 million tonnes in the same period, up 4.9% year -on-year. However, the export revenue decreased by 1% year- on-year to RMB 82.6 billion, presenting a classic case of “V olume-Price Divergence”. Specifically, automotive tire exports reached 4.1379 million tonnes, growing by 3.3% while the export revenue fell by 3.1% to RMB 66.5 billion, representing a more noticeable decline. The domestic t ire industry is now confronting the critical reality of intense price competition. Although the competitiveness of Chinese vehicle exports in overseas markets continues to strengthen, geopolitical tensions escalated during the first half, with exchange rate and international shipping costs impacting export profit. Prices of non-ferrous metals such as copper and zinc, as well as energy sources including natural gas, have risen significantly due to commodity market volatility. The cost factors for radial tire cords have increased simultaneously, narrowing profit margins.
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20 In the second half of 2026, the global economy will face growth pressures. Bank of China Research Institute believes that foreign trade exports and domestic policies will be the main drivers of China’s economic recovery. As the effects of domestic growth -stabilizing policies continue to materialize, exports maintain relatively high prosperity, and domestic demand gradually repairs, China’s macroeconomy is expected to show a gradual recovery, laying a solid foundation for the 15th Five-Year Plan. For the radial tire cords industry, in July, the State Council formally issued the“Action Plan for Carbon Peaking During the 15th Five -Year Plan Period”, setting a target for new energy vehicle stock to reach 30% by 2030, with new energy commercial transport vehicles accounting for 25% of stock. Driven by the“15th Five-Year Plan”, new energy vehicles will continue to drive the positive development and long-term growth of the automotive sector and radial tire cords sector. BUSINESS REVIEW In the first half of 2026, a boost in domestic downstream market demand, resulting in an increase in sales volume. The Group's total sales volume grew by 7.4% year-on-year to 739,600 tonnes (first half of 2025: 688,900); the sales volume of radial tire cords increased by 7.9% year-on-year to 607,100 tonnes (first half of 202 5: 562,400), accounting for 82.1% of the Group’s total sales volume (first half of 202 5: 81.6%); the sales volume of bead wires increased by 6.7% to 73,200 tonnes (first half of 2025: 68,600), representing 9.9% of the Group’s total sales volume (first half of 2025: 10.0%). The sales volume of hose wires and other wires increased by 2.4% to 59,300 tonnes (first half of 2025: 57,900), making up 8.0% of the Group’s total sales volume (first half of 2025: 8.4%). During the review period, the sales volume of radial tire cords for trucks increased by 11.5% year- on-year to 409,600 tonnes (first half of 202 5: 367,400), driven by greater demand s from the domestic downstream market. Additionally, an increase in orders from domestic tire manufacturers outweighed the drop in sales volume of overseas market which contributed to an overall increase in sales volume of radial tire cords for passenger cars , which saw a growth of 1.3% to 197,500 tonnes (first half of 2025: 195,000). The sales volume of radial tire cords for trucks and passenger cars accounted for 67.5% and 32.5% respectively of the total sales volume of radial tire cords during the review period.
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21 Sales Volume Six months ended 30 June 2026 2025 Change Tonnes Tonnes Radial tire cords 607,100 562,400 +7.9% - For trucks 409,600 367,400 +11.5% - For passenger cars 197,500 195,000 +1.3% Bead wires Hose wires and other wires 73,200 59,300 68,600 57,900 +6.7% +2.4% － － － － － － － － － － － － － － － － － － － － Total 739,600 688,900 +7.4% ================= ================= In the China market, the sales volume of the Group’s radial tire cords increased by 13.4% to 433,100 tonnes during the review period (first half of 2025: 381,800 tonnes), primarily driven by increased demand from domestic tire manufacturers . The competition of the overseas radial tire cord market led to a slight decrease in overseas market sales orders in this review period. Accordingly, the sales volume of radial tire cords decreased by 3.7% to 174,000 tonnes (first half of 2025: 180,600 tonnes) in the overseas market . The domestic and overseas markets accounted for 71.3% and 28.7% of the Group's total sales volume, respectively, (first half of 202 5: 67.9% and 32.1%). As at 30 June 202 6, the Group’s annual production capa city of radial tire cords increased to 1,338,000 tonnes. The annual production capacity of the Jiangsu and Shandong factories reached 890,000 tonnes and 348,000 tonnes, respectively, providing strong support for domestic sales. The annual production capacity of the Thailand plant increased to 100,000 tonnes . The annual production capacity of bead wires reached 173,000 tonnes. The annual production capacity of hose wires and other wires reached 131,000 tonnes. During the review period, the overall utilization rate of the Group's factories increased to 90.4% (first half of 202 5: 83.0%), influenced by the uptrend demand in the domestic radial tire market. 30 June 2026 Production Capacity (Tonnes) Six months ended 30 June 2026 Utilisation Rate 30 June 2025 Production Capacity (Tonnes) Six months ended 30 June 2025 Utilisation Rate Radial tire cords 1,338,000 91% 1,317,000 83% Bead wires Hose wires and other wires 173,000 131,000 82% 96% 173,000 131,000 77% 89% Overall 1,642,000 90% 1,621,000 83%
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22 To bolster production capacity and enlarge its business footprint, the Group has continued to invest resources in strengthening product research and development, upgrading product technology, and creating customized radial tire cords to meet the diverse ne eds of customers. During the review period, the Group developed 15 new types of radial tire cords and 7 new types of bead wires and other wires. FINANCIAL REVIEW Revenue The Group’s revenue breakdown by product category is as follows: During the review period, the Group’s revenue increased by RMB114.2 million or 2.0% year-on- year to RMB5,778.5 million (first half of 2025: RMB5,664.3 million), mainly due to an increase in domestic sales volume for the Group. Gross profit and gross profit margin The Group’s gross profit increased by RMB 1.5 million or 0.1% year-on-year to RMB 1,122.6 million (first half of 2025: RMB1,121.1 million), with gross profit margin at 19. 4% (first half of 2025: 19.8%), 0.4 percentage point lower year-on-year mainly to the decrease in average selling price of the products particularly of overseas market which was relatively weakened in the first half of 2026. Other income Other income decreased by RMB33.2 million or 36.5% to RMB57.7 million (first half of 202 5: RMB90.9 million), mainly due to a decrease in bank interest income. It was primarily due to the year-on-year decrease in average term deposits balances and the downward adjustment of bank deposit interest rates. Six months ended 30 June RMB in million 2026 Proportion (%) 2025 Proportion (%) Change (%) Radial tire cords - For trucks - For passenger cars 5,016.7 3,339.2 1,677.5 87 58 29 4,920.6 3,145.8 1,774.8 87 56 31 +2.0 +6.1 -5.5 Bead wires Hose wires and other wires 392.4 369.4 7 6 356.5 387.2 6 7 +10.1 -4.6 Total 5,778.5 100 5,664.3 100 +2.0
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23 Other expense Other expenses increased by RMB0.9 million or 88.9% to RMB 1.9 million (first half of 202 5: RMB1.0 million ), primarily due to the increase in sundry income in the review period and the corresponding increase in costs of sundry income. Government grants During the review period, government grants decreased by RMB5.0 million or 26.9% to RMB13.6 million (first half of 202 5: RMB 18.6 million ), mainly due to a decrease in unconditional government grants. Distribution and selling expenses Distribution and selling expe nses increased by RMB17.7 million or 3.5% to RMB523.7 million (first half of 2025: RMB506.0 million), mainly due to higher transportation costs under increasing shipment fees on a year-on-year basis. Administrative expenses Administrative expenses decreased by RMB3.7 million or 1.9% to RMB188.9 million (first half of 2025: RMB192.6 million). It is mainly due to a drop of staff costs. Other gains and losses, net Other gains and losses, net increased by RMB235.6 million or 242.3% from net gain of RMB97.2 million in the first half of 202 5 to net loss of RMB138.4 million in the first half of 202 6. This increase was mainly due to a turnaround from a net foreign exchange gain in first half of 2025 to a net foreign exchange loss in the first half of 2026 , primarily due to the fluctuations in foreign exchange rates. Impairment loss on financial assets Impairment loss on financial assets increased by RMB0.1 million or 1.2% to RMB10.8 million in the first half of 202 6 (first half of 202 5: RMB10.7 million). This increase was mainly due an increase in trade receivables as at 30 June 2026 when compared to the amount of trade receivables as at 31 December 2025.
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24 Research and development expenditure Research and development expenditure increased by RMB 5.5 million or 3.8% to RMB 151.5 million (first half of 202 5: RMB146.0 million), mainly due to an increase in the number of new products under development projects in the first half of 2026, so that the Group allocated more resources in new product research and development. Finance costs Finance costs decreased by RMB27.9 million or 24.6% to RMB85.5 million (first half of 202 5: RMB113.4 million). The decrease was primarily due to the decline in the effective interest rates of borrowings in the first half of 2026. Income tax expense The Group’s income tax expense decreased by RMB63.1 million or 84.1% to RMB11.9 million (first half of 202 5: RMB75.0 million ), with an effective tax rate of 12.8% (first half of 202 5: 20.9%). During the review period, current tax was decreased by RMB19.7 million or 36.4% to RMB34.4 million due to the decrease in profit before tax (first half of 202 5: RMB54.1 million). By using the current tax on calculating the effective tax rate, it would become 36.9% (first half of 2025: 15.1%). An increase in an effective tax rate was mainly due to profit before tax of Xingda Steel Cord (Thailand) Company Limited for the six months ended 30 June 2025 was absorbed by its unrecognised tax loss and no provision for taxation has been made thereon, but Xingda Steel Cord (Thailand) Company Limited recorded a net foreign exchange loss which led to a net loss was incurred for this review period. Net profit Taking the factors mentioned above into account, the Group’s net profit for the six months ended 30 June 2026 decreased by RMB201.9 million or 71.3% to RMB81.3 million (first half of 2025: RMB283.2 million). LIQUIDITY, CAPITAL RESOURCES AND CAPITAL STRUCTURE During the review period, there were no significant changes in the Group’s funding and treasury policies. The principal source of liquidity and capital resources was the cash flow generated from operating, whereas the principal usage of cash was for the acquisition of property, plant and equipment, repayments of bank borrowings and payments of dividends, interest and income tax.
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25 As at 30 June 2026, the Group’s bank balances and cash increased by RMB 44.6 million or 3.9% from RMB 1,155.2 million as at 31 December 202 5 to RMB1,199.8 million. The increase was mainly due to the cash that generated from operating activities of RMB313.6 million and investing activities of RMB 7.6 million respectively exceeding the cash used for financing activities of RMB263.2 million , and a decrease in cash due to foreign exchange rate changes of RMB 13.4 million. As at 30 June 202 6, the Group’s borrowings amounted to RMB 7,820.5 million, representing an increase of RMB399.7 million or 5.4% from RMB7,420.8 million as at 31 December 202 5. The fixed interest rates on the borrowings ranged from 0.65% to 3.30% (31 December 2025: 0.55% to 3.00%), while the floating interest rates ranged from 2.14% to 3.40% (31 December 2025: 2.04% to 3.55%). Borrowings of RMB 5,859.2 million are due for repayment within one year from 30 June 2026 and the remaining borrowings of RMB1,961.3 million are due for repayment after one year from 30 June 2026. As at 30 June 202 6, the Group’s current assets decreased by RMB 456.9 million or 4.1% to RMB10,773.8 mil lion (31 December 202 5: RMB 11,230.7 million ), while current liabilities increased by RMB82.7 million or 0.8% to RMB 10,557.0 million (31 December 202 5: RMB10,474.3 million ). The Group’s current ratio (being defined as current assets divided by current liabilities) dropped to 1.0 times (31 December 202 5: 1.1 times). As at 30 June 2026, the Group’s gearing ratio (being defined as total borrowings to total assets) was 37.2% (31 December 2025: 35.0%). FOREIGN EXCHANGE RISK The Group’s sales were principally denominated in Renminbi, US dollars, Euros and Thai Baht and the Group’s purchases were principally denominated in Renminbi. The Group exposed to foreign currency risk for translating monetary assets and liabilities denominated in currencies other than Reminbi under the fluctuation of exchange rates movement and th e Group did not enter into any financial derivative instruments to hedge against foreign exchange currency risk during the period under review. However, the Group is closely monitoring the impact of change in value of the Renminbi on its operations and may consider appropriate hedging solutions, if required. CAPITAL EXPENDITURE For the six months ended 30 June 202 6, the Group’s capital expenditure on property, plant and equipment amounted to RMB357.2 million (first half of 2025: RMB685.6 million).
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26 CAPITAL COMMITMENTS As at 30 June 202 6, the Group had made a capital commitment of approximately RMB 925.4 million (31 December 2025: RMB72.5 million) for acquisition of property, plant and equipment contracted for but not provided in the condensed consolidated financial statements. The Group did not make any capital commitment for acquisition of property, plant and equipment authorised but not contracted as at 30 June 2026 and 31 December 2025. The capital commitment is expected to be met by the internal resources of the Group and borrowings. CONTINGENT LIABILITIES The Group did not have any material contingent liabilities as at 30 June 202 6 and 31 December 2025. PLEDGE OF ASSETS As at 30 June 202 6, secured bank borrowings amounting to RMB 807.8 million (31 December 2025: RMB 991.6 million ) were secured by term deposits and bills receivable of the Group amounting to RMB 449.2 million and RMB 301.2 million , respectively (31 December 202 5: secured by term deposits and bills receivable amounting to RMB 636.9 million and RMB 251.6 million, respectively).
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27 SIGNIFICANT INVESTMENTS Pursuant to the placing letter signed by the Company on 2 October 2018, the Company has agreed to subscribe for 11,993,000 shares of Prinx Chengshan Holdings Limited (formerly known as Prinx Chengshan (Cayman) Holding Limited) (“Prinx Chengshan”, stock code: 01809), whose shares are listed on the Main Board of the Stock Exchange, at HK$5.89 per share in cash under the initial public offering. The total subscription money, after deducting expenses, amounted to approximately HK$71.4 million. In 202 4, Xingda has subscribed another 6,100,000 shares of Prinx Chengshan at HK$ 8.90 per share, for a total payment of approximately HK$54.5 million after deducting expenses. In 2025, Xingda disposed 3,000,000 shares of Prinx Chengshan at HK$7.60 per share, for a total sale proceeds of approximately HK$22.7 million after deducting expenses. The shares held by Xingda accounted for 2.4% and 2.4% of the entire issued shares of Prinx Chengshan as at 30 June 2026 and 31 December 2025 respectively. Prinx Chengshan is a modern enterprise focusing on the research and development, manufacturing, sales of tires and the provision of tire full -life-cycle services, and a leading domestic manufacturer in the PRC’s commercial all steel radial tire replacement market. The above mentioned investment still exists and a loss on change in fair value of financial assets at FVTPL of RMB15.9 million was recorded during the six months ended 30 June 2026 (first half of 2025: gain of RMB 2.4 million). For the six months ended 30 June 2026, the dividend income received from Prinx Chengshan was RMB6.6 million (first half of 2025: RMB8.3 million). The fair value of the investment in Prinx Chengshan as at 30 June 2026 was RMB90.5 million (31 December 2025: RMB106.3 million). The above mentioned investment accounted for 0.4% and 0.5% of the total assets value of the Group as at 30 June 2026 and 31 December 2025 respectively. Save as disclosed above, the Group had no other significant investments as at 30 June 202 6 and 31 December 2025 respectively
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28 MATERIAL ACQUISITIONS AND DISPOSALS OF SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES On 25 June 2025, Faith Maple International Ltd ( “Faith Maple”), a wholly owned subsidiary of the Group, on the first part, entered into the capital reduction agreements (the “Capital Reduction Agreements”) with Jiangsu Xingda Steel Tyre Cord Co., Ltd* ( 江蘇興達鋼簾線股份有限公司) (“Jiangsu Xingda”), on the second part, and Chengshan Group Co., Ltd* ( 成山集團有限公司), Sailun Group Co., Ltd.* (賽輪集團股份有限公司), Triangle Tyre Co., Ltd* (三角輪胎股份有限 公司), and Linglong Tire Co., Ltd.* ( 玲瓏輪胎有限公司), respectively, on the third part (the “Investors”). Also on 25 June 2025, Faith Maple entered into a capital reduction agreement with and Dongying Rongju Investment Centre (Limited Partnership)* ( 東營融聚投資中心（有限合 夥）) (the “Dongying Capital Reduction Agreement”) (“Dongying”). Pursuant to the Capital Reduction Agreements and the Dongying Capital Reduction Agreement, each of the Investors and Dongying withdrew from Jiangsu Xingda by way of capital reduction. Before the completion of the capital reduction, the total registered cap ital of Jiangsu Xingda is RMB2,862,262,865 divided into 2,862,262,865 shares. According to the Capital Reduction Agreements and the Dongying Capital Reduction Agreement, each share of Jiangsu Xingda is cancelled at approximately RMB2.69 per share. After the completion of the said capital reduction, the shareholding of the Group in Jiangsu Xingda increased from approximately 70.32% to approximately 74.25%. Please refer to the announcements of the Company dated 25 June 2025 and 4 July 2025 for further details. Save as disclosed above, the Company had no material acquisitions and disposals in relation to its subsidiaries, associates and joint ventures for the six months ended 30 June 2026 and 30 June 2025 respectively. HUMAN RESOURCES As of 30 June 2026, the Group had approximately 8,500 full time employees (31 December 2025: approximately 8,300). Total staff costs including directors’ remuneration for the six months ended 30 June 202 6 was RMB 598.0 million (first half of 202 5: RMB 601.0 million ). Salaries are generally reviewed with reference to employees’ merit, qualifications and competence. The calculation of bonuses was based on an evaluation of individual efforts and contributions to the financial performance of the Group. The Group also continues to provide training programs for staff to enhance their technical and product knowledge as well as awareness of industry quality standards.
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29 In addition to salaries and bonuses, the Group also provides various benefits to employees through the Labor Union of Jiangsu Xingda (“Xingda Labor Union”). Each year, major operating subsidiaries including Jiangsu Xingda, Shandong Xingda Steel Tyre Cord Co., Ltd. (“Shandong Xingda”) and Taizhou Xingda Specialized Wires Co., Ltd. (“Taizhou Xingda”) contribute 2% of the total salary of staff (“Union Fee”) to support operation of the Xingda Labor Union. The Union Fee, together with other funds obtained by the Xingda Labor Union are used to provide a variety of welfare benefits and services to employees of the Group, including provision of staff quarters which employees may choose to purchase. For the six months ended 30 June 2026, the amount of Union Fees contributed by the Labour Union of Jiangsu Xingda, Shandong Xingda and Taizhou Xingda was RMB8.7 million (first half of 2025: RMB9.0 million). According to the Social Insurance Regulations published by the State Council of China on 14 January 1999, the Group is required to make contributions to pension funds and insurance policies for its employees. Full -time employees of the Group in China are covered by the contributory pension scheme managed by the government entitling them to a monthly pension after they retire. The PRC government is responsible for crediting the pension to the retired and the Group is required to make annual contributions to the retirement scheme run by the Xinghua Municipality at a specified rate. The contribution is booked in due course as an operating expense of the Group. Under the scheme, no forfeited contributions are available to reduce the existing level of contributions. Apart from pension funds, the Group has provided medical, personal accident and unemployment insurance policies for its employees. In 2009, the Board adopted a share award scheme to retain elite employees and encourage them to achieve performance goals by aligning their interests to the shareholders through share ownerships. Shares are to be purchased by the trustee in the market out of cash contributed by the Company and be held in trust for the selected employees until such shares are vested in them.
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30 In 2010, 5,000,000 shares of the Company (the “First Batch Shares”) were purchased by the trustee on the public market. In 2011, another 5,000,000 shares of the Company (the “Second Batch Shares”) were purchased by the trustee on the public market. In 2013, 10,481,000 shares of the Company were purchased by the trustee on the public market, of which 5,000,000 shares were added to the Second Batch Shares and the remaining 5,481,000 shares were classified as the Third Batch Shares (the “Third Batch Shares”). In 2014, 4,519,000 shares of the Company were purchased by the trustee on the public market and were added to the Third Batch Shares. In 2016, 7,282,000 shares of the Company were purchased by the trustee on the public market (the “Fourth Batch Shares”). In 2017, 601,011 scrip shares allotted under the scrip dividend scheme of the Company as dividend derived from the shares held upon the trust in relation to the share award scheme were added to the Fourth Batch Shares. In 2018, 506,266 scrip shares allotted under the scrip dividend scheme of the Company as dividend derived from the shares held upon the trust in relation to the share award scheme were added to the Fourth Batch Shares. In 2019, 418,899 scrip shares allotted under the scrip dividend scheme of the Company as dividend derived from the shares held upon the trust in relation to the share award scheme were added to the Fourth Batch Shares. Meanwhile, 4,900,000 shares of the Company were purchased by the trustee on the public market, of which 1,075,824 shares were added to the Fourth Batch Shares and the remaining 3,824,176 shares as the Fifth Batch Shares (the “Fifth Batch Shares”). In 2020, 732,018 scrip shares allotted under the scrip dividend scheme of the Company as dividend derived from the shares held upon the trust in relation to the share award scheme were added to the Fifth Batch Shares. In 2021, 665,471 scrip shares allotted under the scrip dividend scheme of the Company as dividend derived from the shares held upon the trust in relation to the share award scheme were added to the Fifth Batch Shares. For the year ended 31 December 2021, 102,000 Fourth Batch Shares were unvested and added to the Fifth Batch Share s. In the first half of 2026 , 10,000,000 shares of the Company were purchased by the trustee on the public market and 3,009,335 shares were added to the Fifth Batch Shares and the remaining 6,990,665 shares were added to the Sixth Batch Shares (the “Sixth Batch Shares”).As at 30 June 2026, the total balance of the Fifth Batch Shares and Sixth Batch Shares were 12,139,665 shares. As at 30 June 202 6, all the First Batch Shares, the Second Batch Shares, the Third Batch Shares and the Fourth Batch Shares and one-third of the Fifth Batch Shares have been vested with selected employees. One-third of Fifth Batch Shares are expected to be vested with selected employees not later than the end of the first quarter of 2027.
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31 PROSPECTS In the first half of 2026, despite a challenging and complex external environment, the Chinese economy remained generally stable and demonstrated strong resilience. In July, the State Council formally approved the “Plan for Expanding Consumption During the 15th Five-Year Plan Period”, providing policy support for the expansion and upgrading of goods consumption. Consumption is expected to recover moderately in the second half of 2026. China Association of Automobile Manufacturers (CAAM) also anticipates that the “Renewal and trade-in programs” will continue to be implemented in an orderly manner. CAAM has jointly compiled “Rules for Calculating Whole Vehicle Costs in China's Automotive Industry” with 18 leading domestic automotive manufacturers. On the one hand, the policy is expected to stimulate growth on the consumer side. On the other hand, the self -discipline of price competition and the advancement of high-quality development in the automotive industry will support the overall profit margins of the radial ti re cords industry. However, there is a lag in the transmission of policy benefits to the real economy, and the strength of domestic demand recovery in the short term should not be overly optimistic. In terms of exports, the automotive and tire exports performed strongly in the first half, becoming the main driver of industry growth. However, the ongoing impact of geopolitical risks throughout the year, combined with seasonal production halts due to hi gh temperatures and short -term pressure for the renminbi to rise, have reduced export margins. The Group maintains a neutral and cautious stance towards the industry in the short term. Operationally, facing the capacity release by peers and “involution” competition within the industry, the Group will focus on maintaining a healthy and stable utili zation rate, as well as continuing to implement internal technical improvements, new product research and development, and fixed asset upgrades to enhance production efficiency, thereby strengthening the Group's core competitiveness and risk resilience amid fierce market competition. Looking forward to the future, the Group will pay close attention to the changes in industry trends and domestic and overseas policies, adapt our strategy according to the general environment. At the same time , we will follow the green trend in the tire industry, optimize our global capacity layout, and continue to advance technological innovation and product upgrades. To continue the development focus for the whole year of 2026, we will commit ourselves to research and production of green products, providing high -quality solutions for customers, and seizing long - term development opportunities within the structural transformation.
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32 INTERIM DIVIDEND The Board does not recommend the payment of interim dividend for the six months ended 30 June 2026. CORPORATE GOVERNANCE PRACTICES To promote high level of transparency, accountability and independence in the interests of the shareholders, the Company is committed to maintaining high standards of corporate governance. The Company has applied the principles in and complied with the code provisions of the Corporate Governance Code contained in Appendix C1 of the Listing Rules throughout the six months ended 30 June 2026, except for the following:- Code provision C.2.1 provides, among other things, that the roles of chairman and chief executive should be separate and should not be performed by the same individual. The chairman of the Board, Mr. Liu Jinlan, provides overall leadership for the Board and takes the lead to ensure that the Board acts in the best interest of the Company. The Company does not have the position of chief executive officer and the daily operation of the Group is assigned among the executive Directors. In addition to the fact that the responsibilities of the chairman are shared by the remaining executive Directors, the Executive Committee of the Company which has been established for determining, approving and overseeing the day-to-day control over the allocation of the Group’s resources also segregates the duties of Mr. Liu Jinlan. During the review period. f ollowing the resignation of M s. Xu Chunhua as an independent non - executive Director on 8 April 2026, the Board only had two independent non-executive Directors. As a result of the foregoing, the Company was not in compliance with (i) Rule 3.10(1) of the Listing Rules, which stipulates that the Board must include at least three independent non - executive directors; (ii) Rule 3.10A of the Listing Rules, which stipulates that the number of independent non-executive directors shall represent at least one-third of the Board; (iii) Rule 3.21 of the Listing Rules, which stipulates that the audit committee must comprise a minimum of three members; and (iv) Rule 3.27A of the Listing Rules, which stipulates that the nomination committee must comprise a majority of independent non -executive directors. Ms. Leung Ho Ming, Alison was appointed as an independent non -executive Director on 5 June 2026. Following the appointment of Ms. Leung Ho Ming, Alison , the Company has been in compliance with Rule 3.10(1), Rule 3.10A, Rule 3.21 and Rule 3.27A of the Listing Rules.
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33 In compliance with the code provisions of the Corporate Governance Code, the Company has set up the Audit Committee, the Remuneration and Management Development Committee and the Nomination Committee , and the Board has been responsible for performing the corporate governance duties as set out in the code provisions. MODEL CODE FOR SECURITIES TRANSACTIONS The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers (“ Model Code ”) set out in Appendix C3 of the Listing Rules as the code of conduct regarding Directors’ securities transactions. After having made specific enquiry with all Directors, the Company has received confirmations from all Directors that they have complied with the required standards set out in the Model Code during the six months ended 30 June 2026. The Company has also adopted procedures on terms no less exacting than the Model Code in respect of the securities transactions of the employees who are likely to be in possession of unpublished price-sensitive information. PURCHASE, SALE OR REDEMPTION OF THE COMPANY’S LISTED SECURITIES Neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company’s listed securities during the six months ended 30 June 2026. REVIEW OF INTERIM FINANCIAL STATEMENTS The Audit Committee together with the external auditor and the management of the Company have reviewed the accounting principles and practices adopted by the Group and discussed the financial reporting matters including the review of the unaudited interim results of the Group for the six months ended 30 June 2026.
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34 PUBLICATION OF RESULTS ANNOUNCEMENT AND THE INTERIM REPORT This results announcement is available for viewing on the website of The Stock Exchange of Hong Kong Limited (www.hkexnews.hk) and on the website of the Company (www.irasia.com/listco/hk/xingda/index.htm). The Company’s interim report for the six months ended 30 June 2026 will be dispatched to the shareholders of the Company and will be published on the above websites as and where appropriate in due course. By Order of the Board XINGDA INTERNATIONAL HOLDINGS LIMITED Liu Jinlan Chairman Shanghai, the PRC, 31 August 2026 As at the date of this announcement, the executive Directors are Mr. LIU Jinlan, Mr . LIU Xiang, Mr . HANG Youming, Mr . WANG Jin and Mr. SHEN Aiguo, the independent non-executive Directors are Mr. KOO Fook Sun, Louis, Ms. ZHANG Guoyun and Ms. LEUNG Ho Ming, Alison .