Earnings release
Page 1
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. China Risun Group Limited ʮ̡ (Incorporated in the Cayman Islands with limited liability) (Stock Code: 1907) ANNOUNCEMENT OF UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2026 HIGHLIGHTS • Coke and refined chemicals ’ production/processing volume for the Reporting Period were 9.4 million tons and 2.6 million tons respectively, representing decreases of 13.8% and 10.3% year-on-year. • High-purified hydrogen ’s production volume for the Reporting Period was 9.2 million Nm3, representing a decrease of 17.4% year-on-year. • Lithium battery anode materials ’ production/processing volume for the Reporting Period was 42.0 thousand tons, representing an increase of 63.9% year-on-year. • Revenue for the Reporting Period was RMB21,855.9 million, representing an increase of 5.2% year-on-year. • Profits for the Reporting Period was RMB244.4 million, representing an increase of 376.0% year-on-year. • Basic earnings per share for the Reporting Period was RMB4.77 cents, representing an increase of 736.8% year-on-year. • The Board declares an interim dividend for the Reporting Period amounting to RMB1.44 cents per share (equivalent to HK1.67 cents per share) (for the Last Period: RMB0.20 cents per share or HK0.22 cents per share). The board (the “Board”) of directors (the “Director(s) ”) of China Risun Group Limited (the “Company ”) is pleased to announce the unaudited consolidated results of the Company and its subsidiaries (collectively referred to as the “Group”) for the six months ended June 30, 2026 (the “Reporting Period ” or “Current Interim Period ” or “Current Period ”), together with the comparative unaudited figures for the six months ended June 30, 2025 (the “Last Period ”).
Page 2
2 CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2026 Six months ended June 30, 2026 2025 Notes RMB’000 RMB’000 (Unaudited) (Unaudited) (Restated) Revenue 5 21,855,864 20,783,377 Cost of sales and services (19,544,540) (19,105,407) Gross profit 2,311,324 1,677,970 Other income 6 120,641 341,520 Other gains and losses 7 (97,305) 50,397 Impairment losses (including reversals of impairment losses) on financial assets (7,455) (14,427) Selling and distribution expenses (758,884) (705,570) Administrative expenses (511,211) (560,959) Profit from operations 1,057,110 788,931 Finance costs 8 (796,273) (705,082) Share of results of associates 35,635 9,651 Share of results of joint ventures 3,030 6,260 Profit before taxation 9 299,502 99,760 Income tax expense 10 (55,143) (48,415) Profit for the period 244,359 51,345 Other comprehensive expense for the period Item that may be reclassified subsequently to profit or loss: Exchange differences arising on translating foreign operations (60,955) (4,091) Total comprehensive income for the period 183,404 47,254
Page 3
3 Six months ended June 30, 2026 2025 Notes RMB’000 RMB’000 (Unaudited) (Unaudited) (Restated) Profit for the period attributable to: Owners of the Company 203,971 24,877 Non-controlling interests 40,388 26,468 244,359 51,345 Total comprehensive income for the period attributable to: Owners of the Company 143,016 20,786 Non-controlling interests 40,388 26,468 183,404 47,254 Earnings per share (RMB cents) Basic 12 4.77 0.57 Diluted 4.77 N/A
Page 4
4 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT JUNE 30, 2026 June 30, 2026 December 31, 2025 Notes RMB’000 RMB’000 (Unaudited) (Restated) Non-current assets Property, plant and equipment 13 30,193,129 29,788,518 Right-of-use assets 1,859,855 1,851,053 Investment properties 13 1,826,923 1,830,303 Goodwill 212,347 212,347 Intangible assets 1,479,219 1,456,596 Interests in associates 962,137 890,563 Interests in joint ventures 3,043,966 2,948,987 Other long term receivables and prepayments 14 691,900 619,739 Financial assets at fair value through profit or loss ( “FVTPL ”) 15 476,539 333,752 Deferred tax assets 205,963 201,323 Amounts due from related parties 1,012,641 943,895 41,964,619 41,077,076 Current assets Inventories 4,006,276 3,107,599 Income tax prepayment 32,416 38,269 Other receivables 16 13,957,512 10,537,188 Trade and bills receivables measured at fair value through other comprehensive income (“FVTOCI ”) 16 1,949,788 1,628,649 Amounts due from related parties 2,543,203 3,169,365 Financial assets at FVTPL 15 153 37 Restricted bank balances 17 5,325,924 3,118,671 Bank deposits 17 313,425 381,857 Cash and cash equivalents 4,454,602 1,588,529 32,583,299 23,570,164
Page 5
5 June 30, 2026 December 31, 2025 Notes RMB’000 RMB’000 (Unaudited) (Restated) Current liabilities Financial liabilities at FVTPL 15 75 2,397 Trade and other payables 18 10,957,249 9,249,520 Contract liabilities 2,387,518 1,833,924 Income tax payable 365,654 352,875 Bank and other loans 19 27,927,965 25,759,219 Lease liabilities 2,355 1,568 Amounts due to related parties 2,587,905 2,193,615 44,228,721 39,393,118 Net current liabilities (11,645,422) (15,822,954) Total assets less current liabilities 30,319,197 25,254,122 Non-current liabilities Bank and other loans 19 13,473,162 9,181,638 Lease liabilities 1,686 639 Deferred income 322,795 323,274 Deferred tax liabilities 410,455 424,194 Trade and other payables 101,020 102,845 14,309,118 10,032,590 NET ASSETS 16,010,079 15,221,532 CAPITAL AND RESERVES Share capital 20 385,172 385,172 Reserves 11,772,593 12,102,870 Total equity attributable to owners of the Company 12,157,765 12,488,042 Non-controlling interests 3,852,314 2,733,490 TOTAL EQUITY 16,010,079 15,221,532
Page 6
6 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED JUNE 30, 2026 Attributable to owners of the Company Share capital Treasury Stocks Share premium Merger reserve Reserve fund Safety fund Foreign currency transaction reserve Revaluation reserve Other reserve Retained profits Total Non- controlling interests Total equity RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Balance at December 31, 2025 (Audited) 385,172 (477,376) 3,085,483 19,869 1,942,097 43,994 43,609 155,834 227,986 7,066,558 12,493,226 2,590,052 15,083,278 The 2026 Acquisition (note 3) – – – 56,329 – 2,419 – – – (63,932) (5,184) 143,438 138,254 Balance at January 1, 2026 (restated) 385,172 (477,376) 3,085,483 76,198 1,942,097 46,413 43,609 155,834 227,986 7,002,626 12,488,042 2,733,490 15,221,532 Profit for the period – – – – – – – – – 203,971 203,971 40,388 244,359 Other comprehensive expense – – – – – – (60,955) – – – (60,955) – (60,955) Net transfer to safety fund – – – – – 8,766 – – – (8,766) – – – Repurchase of shares as treasury stocks (note 20) – (41,940) – – – – – – – – (41,940) – (41,940) Recognition of equity-settled share-based payment – – – – – – – – 1,926 – 1,926 16,748 18,674 Capital contributions from non- controlling shareholders – – – – – – – – 146,051 – 146,051 1,132,743 1,278,794 Business combination under common control (note 3) – – – (571,200) – – – – – – (571,200) – (571,200) Dividend declared by a subsidiary – – – – – – – – – – – (71,055) (71,055) Dividends recognized as distribution (note 11) – – – – – – – – – (8,130) (8,130) – (8,130) Balance at June 30, 2026 (Unaudited) 385,172 (519,316) 3,085,483 (495,002) 1,942,097 55,179 (17,346) 155,834 375,963 7,189,701 12,157,765 3,852,314 16,010,079 Balance at December 31, 2024 (Audited) 385,172 (297,416) 3,085,483 19,869 1,822,875 34,010 68,855 155,834 243,868 7,241,224 12,759,774 3,116,908 15,876,682 The 2026 Acquisition (note 3) – – – 46,719 – 1,200 – – – (15,043) 32,876 201,951 234,827 Balance at January 1, 2025 (restated) 385,172 (297,416) 3,085,483 66,588 1,822,875 35,210 68,855 155,834 243,868 7,226,181 12,792,650 3,318,859 16,111,509 Profit for the period – – – – – – – – – 24,877 24,877 26,468 51,345 Other comprehensive expense – – – – – – (4,091) – – – (4,091) – (4,091) Net transfer to safety fund – – – – – 16,941 – – – (16,941) – – – Repurchase of shares as treasury stocks – (116,910) – – – – – – – – (116,910) – (116,910) Partial disposal of a subsidiary – – – – – – – – (1,093) – (1,093) 1,181 88 Capital contributions from a non- controlling shareholder – – – – – – – – – – – 4,063 4,063 Dividend declared by a subsidiary – – – – – – – – – – – (107,100) (107,100) Dividends recognized as distribution (note 11) – – – – – – – – – (94,907) (94,907) – (94,907) Balance at June 30, 2025 (Unaudited) 385,172 (414,326) 3,085,483 66,588 1,822,875 52,151 64,764 155,834 242,775 7,139,210 12,600,526 3,243,471 15,843,997
Page 7
7 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2026 1. GENERAL INFORMATION The Company was incorporated in the Cayman Islands as an exempted company with limited liability under the Companies Law, Chapter 22 (Law 3 of 1961, as consolidated and revised) of the Cayman Islands. The ultimate holding company and immediate holding company of the Company is Texson Limited, a company incorporated in the British Virgin Islands, and ultimately controlled by Mr. Yang Xuegang (the “Ultimate Controlling Shareholder ”). The Company ’s operating subsidiaries are engaged in the manufacturing, sale and distribution of coke, coking chemicals, refined chemicals and new energy products. The condensed consolidated financial statements of the Company and its subsidiaries (collectively referred to as the “Group”) are presented in Renminbi ( “RMB”), which is the same as the functional currency of the Company. 2. 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 ( “IASB”) as well as the applicable disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. Going concern As at June 30, 2026, the Group had net current liabilities of RMB11,645 million. The directors of the Company (the “Directors ”) are of the opinion that, taking into consideration the availability of unutilized banking facilities of the Group amounting to RMB9,852 million at the report date, of which RMB7,626 million is unconditional and RMB2,226 million is the outstanding portion of certain syndicated loans for special purpose of construction of certain production lines and the assumption that approximately 55% of bank and other loans as at the date of this report will be successfully renewed upon maturity, the Group has sufficient financial resources to meet its commitments and liabilities as and when they fall due for the next twelve months from the end of the reporting period. Accordingly, the condensed consolidated financial statements are prepared on a going concern basis.
Page 8
8 3. RESTATEMENTS ARISING FROM BUSINESS COMBINATION UNDER COMMON CONTROL On June 24, 2026, Risun Group Limited ( “Risun Group ”), a wholly-owned subsidiary of the Company, acquired 14.5% equity interest in Tianjin Binhai Energy & Development Co., Ltd. ( “Binhai Energy ”) at the consideration of RMB571.2 million, which was previously owned by Xuyang Holding Limited ( “Xuyang Holding ”), a company beneficially owned by the Ultimate Controlling Shareholder. Binhai Energy is primarily engaged in lithium battery anode materials business. Risun Group and Xuyang Holding also entered into an acting-in-concert agreement, which will take effect from the date of completion of the Acquisition and shall terminate on the date when either Risun Group or Xuyang Holding ceases to hold any shares in Binhai Energy, pursuant to which Xuyang Holding agreed that, upon completion of the acquisition, in exercising the shareholder voting rights, nomination rights, proposal rights and other non-property rights attached to the shares of the Binhai Energy held by it, representing 9.32% equity interest of Binhai Energy, it shall act in concert with Risun Group and exercise such rights in accordance with the decisions made by Risun Group. The acquisition was referred to as the “2026 Acquisition ”. Upon completion of the 2026 Acquisition and based on the acting-in-concert arrangement, Risun Group will in aggregate control the exercise of approximately 23.82% of the voting rights of the issued shares of the Binhai Energy, and the Group will have de facto control over Binhai Energy taking into consideration the relative size and dispersion of holdings of the other shareholders of Binhai Energy, the historically low attendance of the other shareholders at Binhai Energy ’s shareholders ’ meetings and the practical ability to nominate majority of the directors of Binhai Energy. Accordingly, upon completion of the 2026 Acquisition, the Group will control the relevant activities of Binhai Energy and consolidate its financial statements. As the Group and Binhai Energy were under common control of the Ultimate Controlling Shareholder before and after the 2026 Acquisition, and such control was not transitory, the acquisition is considered as a business combination under common control. The principle of merger accounting for business combination involving businesses under common control has therefore been applied. As a result, the condensed consolidated financial statements have been prepared as if Binhai Energy was a subsidiary of the Company ever since it became under common control of the Ultimate Controlling Shareholder. The net assets of Binhai Energy are consolidated using the existing book values from Xuyang Holding ’s perspective, and no amount is recognised as goodwill. The difference between the acquirer ’s interest in the net fair value of acquiree ’s identifiable assets, liabilities and contingent liabilities and cash consideration have been made to merger reserve in the condensed consolidated statement of changes in equity. Accordingly, the consolidated statement of financial position as at December 31, 2025 have been restated to include the carrying amount of assets and liabilities of Binhai Energy which had been in existence as at December 31, 2025 as if Binhai Energy was combined from the date when they first came under the common control of the Ultimate Controlling Shareholder. The condensed consolidated statement of profit or loss and other comprehensive income, condensed consolidated statement of changes in equity and condensed consolidated statement of cash flows for the period ended June 30, 2025 have been restated to include the operating results of Binhai Energy. Respective notes to the condensed consolidated financial statements have also been restated. All significant intragroup transactions, balances, income and expenses are eliminated on combination.
Page 9
9 As a result of the 2026 Acquisition, the relevant line items in the condensed consolidated statement of financial position as at December 31, 2025 have been restated. The following table shows the effect for each individual line item affected: The Group Effect of (as previously the 2026 The Group reported) Acquisition Eliminations (restated) RMB’000 RMB’000 RMB’000 RMB’000 (Audited) (Unaudited) (Unaudited) (Unaudited) Non-current assets Property, plant and equipment 27,991,912 1,734,723 61,883 29,788,518 Right-of-use assets 1,480,329 417,805 (47,081) 1,851,053 Investment property 1,883,422 – (53,119) 1,830,303 Intangible assets 1,453,125 3,471 – 1,456,596 Other long-term receivables and prepayments 577,164 42,575 – 619,739 Deferred tax assets 155,398 45,925 – 201,323 Amounts due from related parties 943,216 679 – 943,895 Current assets Inventories 2,850,678 256,921 – 3,107,599 Other receivables 10,500,485 36,703 – 10,537,188 Trade and bills receivables measured at FVTOCI 1,355,156 273,493 – 1,628,649 Amounts due from related parties 3,169,494 3,523 (3,652) 3,169,365 Pledged bank deposits 3,116,022 2,649 – 3,118,671 Cash and cash equivalents 1,578,824 9,705 – 1,588,529 Current liabilities Trade and other payables 8,276,346 973,174 – 9,249,520 Contract liability 1,831,252 2,672 – 1,833,924 Income tax payables 352,871 4 – 352,875 Bank and other loans 25,536,007 223,212 – 25,759,219 Lease liabilities 1,495 73 – 1,568 Amounts due to related parties 1,198,109 999,158 (3,652) 2,193,615 Non-current liabilities Bank and other loans 8,890,401 291,237 – 9,181,638 Deferred income 164,534 158,740 – 323,274 Deferred tax liabilities 420,863 15,101 (11,770) 424,194 Capital and Reserves Share capital 385,172 222,148 (222,148) 385,172 Reserves 12,108,054 (147,886) 142,702 12,102,870 Non-controlling interests 2,590,052 90,539 52,899 2,733,490
Page 10
10 As a result of the 2026 Acquisition, the relevant line items in the condensed consolidated statement of profit or loss and other comprehensive income, basic and diluted earnings per share, and condensed consolidated statement of cash flows for the six months period ended June 30, 2025 have been restated. The following table shows the effect for each individual line item affected: The Group Effect of (as previously the 2026 The Group reported) Acquisition Eliminations (restated) RMB’000 RMB’000 RMB’000 RMB’000 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Condensed consolidated statement of profit or loss and other comprehensive income for the six months period ended June 30, 2025 Revenue 20,548,610 234,767 – 20,783,377 Cost of sales and services (18,862,702) (243,661) 956 (19,105,407) Other income 341,376 144 – 341,520 Other gains and losses 48,042 398 1,957 50,397 Impairment losses (including reversals of impairment losses) on financial assets (11,336) (3,091) – (14,427) Selling and distribution expenses (703,073) (2,497) – (705,570) Administrative expenses (544,606) (15,290) (1,063) (560,959) Finance costs (693,308) (11,774) – (705,082) Income tax expense (52,006) 3,591 – (48,415) Profit for the period 86,908 (37,413) 1,850 51,345 Total comprehensive income for the period 82,817 (37,413) 1,850 47,254 Profit for the period attributable to: Owners of the Company 28,639 (37,105) 33,343 24,877 Non-controlling interests 58,269 (308) (31,493) 26,468 Total comprehensive income for the period attributable to: Owners of the Company 24,548 (37,105) 33,343 20,786 Non-controlling interests 58,269 (308) (31,493) 26,468 Earnings per share (RMB cents) Basic 0.66 (0.85) N/A 0.57 Condensed consolidated statement of cash flows for the six months period ended June 30, 2025 Operating activities 1,946,279 (85,029) – 1,861,250 Investing activities (5,602,104) (10,862) – (5,612,966) Financing activities 3,893,599 97,340 – 3,990,939
Page 11
11 4. ACCOUNTING POLICIES The condensed consolidated financial statements have been prepared on the historical cost basis except for certain financial instruments and investment properties, which are measured at fair values, as appropriate. Other than additional/change in accounting policies resulting from the application of the amendments to IFRS Accounting Standards and the application of de facto control as set out below, the accounting policies and methods of computation used in the condensed consolidated financial statements for the six months ended June 30, 2026 are the same as those presented in the Group ’s consolidated annual financial statements for the year ended December 31, 2025. Application of amendments to IFRS Accounting Standards In the current interim period, the Group has applied the following amendments to IFRS Accounting Standard issued by the IASB, for the first time, which are mandatorily effective for the Group ’s annual period beginning on January 1, 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 Annual Improvements to IFRS Accounting Standards Accounting Standards – Volume 11 The application of the amendments to IFRS Accounting Standard 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. Application of de facto control in business combination When the Group has less than a majority of the voting rights of an investee, it considers that it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Group considers all relevant facts and circumstances in assessing whether or not the Group ’s voting rights in an investee are sufficient to give it power, including: • the size of the Group ’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders; • potential voting rights held by the Group, other vote holders or other parties; • rights arising from other contractual arrangements; and • any additional facts and circumstances that indicate that the Group has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders ’ meetings. 5. REVENUE AND SEGMENT INFORMATION During the current interim period, the Group ’s revenue represents the amount received and receivable from the sales of goods or provision of service to external customers arising from the coke and coking chemicals, refined chemicals, operation management services, trading, new energy products, sales of properties arising from property development and rental income. Except for the provision of operation management services, which was recognized over time, the revenue of the remaining operations is recognized at a point in time when the customers obtain control of the goods/services delivered.
Page 12
12 Upon completion of the 2026 Acquisition as set out in note 3, the Group has a new reportable segment of new energy product manufacturing, which includes lithium battery anode materials manufacturing conducted by Binhai Energy and hydrogen energy manufacturing previously measured in the segment of refined chemicals manufacturing. In addition, during the current interim period, the Directors, being the chief operating decision maker, changed the profit allocation basis for inter-segment sales between the coke and coking chemicals manufacturing segment and the refined chemicals manufacturing segment. Following the Group reorganised its internal reporting structure set out above, which resulted in changes to the composition of its reportable segments, the corresponding segment revenue and results for the six months ended June 30, 2025 and segment assets and liabilities as at December 31, 2025 have been restated. Except for the carrying amounts of long-term equity investment in joint ventures and an associate amounting to RMB1,303 million (December 31, 2025: RMB1,372 million) and RMB188 million (December 31, 2025: RMB199 million) respectively, which were operated in Indonesia, and approximately 4% (the six months ended June 30, 2025: 3%) of the Group ’s revenue which were derived from outside the People ’s Republic of China (“PRC”), the Group ’s revenue and profit were mainly derived from the PRC and all other non-current assets are mainly located in the PRC during the reporting period. The following is an analysis of the Group ’s results, by reportable segments: Six months ended June 30, 2026 (Unaudited) Coke and Coking Chemicals Manufacturing Refined Chemicals Manufacturing Operation Management Trading New Energy Products Manufacturing Others Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Revenue from contracts with external customers Sale of coke and coking chemicals 6,965,556 – – – – – 6,965,556 Sale of refined chemicals – 9,475,342 1,836,418 – – – 11,311,760 Trading – – – 2,976,912 – – 2,976,912 Management services – – 26,239 – – – 26,239 Sale of new energy products – – – – 523,300 – 523,300 Property development and investment – – – – – 52,097 52,097 6,965,556 9,475,342 1,862,657 2,976,912 523,300 52,097 21,855,864 Inter-segment revenue 1,085,674 286,217 – – 59,021 – 1,430,912 Reportable segment revenue 8,051,230 9,761,559 1,862,657 2,976,912 582,321 52,097 23,286,776 Reportable segment results 69,225 361,001 86,760 (79,359) (16,487) 10,630 431,770 Unallocated head office and corporate expenses (132,268) Profit before taxation 299,502 Other information: Share of results of associates 1,365 32,626 – 1,644 – – 35,635 Share of results of joint ventures 3,030 – – – – – 3,030
Page 13
13 Six months ended June 30, 2025 (Restated and unaudited) Coke and Coking Chemicals Manufacturing Refined Chemicals Manufacturing Operation Management Trading New Energy Products Manufacturing Others Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Revenue from contracts with external customers Sale of coke and coking chemicals 6,357,591 – – – – – 6,357,591 Sale of refined chemicals – 9,096,043 1,215,633 – – – 10,311,676 Trading – – – 3,730,359 – – 3,730,359 Management services – – 58,906 – – – 58,906 Sale of new energy products – – – – 234,767 – 234,767 Property development and investment – – – – – 90,078 90,078 6,357,591 9,096,043 1,274,539 3,730,359 234,767 90,078 20,783,377 Inter-segment revenue 1,099,027 222,964 – – 73,456 – 1,395,447 Reportable segment revenue 7,456,618 9,319,007 1,274,539 3,730,359 308,223 90,078 22,178,824 Reportable segment results 393,933 44,476 33,768 (183,891) (946) (1,528) 285,812 Unallocated head office and corporate expenses (186,052) Profit before taxation 99,760 Other information: Share of results of associates (21,515) 31,166 – – – – 9,651 Share of results of joint ventures 6,260 – – – – – 6,260
Page 14
14 The following is an analysis of the Group ’s assets and liabilities by reportable segments: Segment assets June 30, 2026 December 31, 2025 RMB’000 RMB’000 (Restated) Coke and coking chemicals manufacturing 23,269,139 21,792,412 Refined chemicals manufacturing 24,486,251 21,826,827 Operation management 664,732 373,543 Trading 17,269,671 13,283,418 New energy products manufacturing 4,594,957 3,166,191 Others 2,381,269 2,373,338 Reportable segment assets 72,666,019 62,815,729 Unallocated head office and corporate assets 1,881,899 1,831,511 Total assets 74,547,918 64,647,240 Segment liabilities June 30, 2026 December 31, 2025 RMB’000 RMB’000 (Restated) Coke and coking chemicals manufacturing 17,691,775 16,513,109 Refined chemicals manufacturing 21,852,683 18,058,380 Operation management 437,313 235,538 Trading 12,818,946 9,631,625 New energy products manufacturing 3,397,563 2,750,353 Others 1,283,132 1,361,322 Reportable segment liabilities 57,481,412 48,550,327 Unallocated head office and corporate liabilities 1,056,427 875,381 Total liabilities 58,537,839 49,425,708
Page 15
15 6. OTHER INCOME Six months ended June 30 2026 2025 RMB’000 RMB’000 (Restated) Interest income 60,291 70,858 Value-added Tax ( “VAT”) concession (Note) 32,340 86,093 Production waste sales 13,133 30,527 Government grants 14,844 139,885 Others 33 14,157 120,641 341,520 Note: During the current interim period, certain subsidiaries of the Company are qualified as “Advanced Manufacturing Enterprises ”, which are eligible for an extra 5% VAT deduction based on their deductible input VAT during the period from January 1, 2023 to December 31, 2027. 7. OTHER GAINS AND LOSSES Six months ended June 30 2026 2025 RMB’000 RMB’000 (Restated) Change in fair value of financial assets/liabilities at FVTPL: – Listed equity securities (10,361) 5,806 – Unlisted equity securities (554) (4,943) – Private equity investment funds 36,382 7,302 – Futures contracts 1,325 8,007 – Other non-derivative financial assets – (1,026) Fair value change of investment properties (3,380) (1,610) Loss on foreign exchange, net (43,675) (3,367) Impairment of construction in progress (Note) (88,080) – Gain on disposal of property, plant and equipment 3,005 3,288 Insurance proceeds received – 13,000 Gain on modification of a payable to a third party – 14,585 Others 8,033 9,355 (97,305) 50,397 Note: During the current interim period, the management of the Group determined to terminate the construction of two production lines taking into consideration changes in industrial regulatory policies and recognized an impairment loss amounting to RMB88 million accordingly.
Page 16
16 8. FINANCE COSTS Six months ended June 30 2026 2025 RMB’000 RMB’000 (Restated) Interest on bank loans 528,332 465,249 Interest on other loans from licensed financial institutions 206,619 178,794 Finance charges on bills receivable discounted 105,720 85,803 Finance charges on lease liabilities 74 21 840,745 729,867 Less: Amount capitalized under construction in progress (Note) (44,472) (24,785) 796,273 705,082 Note: The finance costs were capitalized at annual rates of 3.00% to 6.00% per annum during the current interim period (during the six months ended June 30, 2025: 3.55% to 7.60% per annum). 9. PROFIT BEFORE TAXATION Profit before taxation has been arrived at after charging (crediting) the following items: Six months ended June 30 2026 2025 RMB’000 RMB’000 (Restated) Depreciation of property, plant and equipment 951,516 921,603 Depreciation of right-of-use assets 25,493 29,264 Amortization of intangible assets 78,303 89,208 Total depreciation and amortization 1,055,312 1,040,075 Capitalized in construction in progress (3,022) (1,971) 1,052,290 1,038,104 10. INCOME TAX EXPENSE Six months ended June 30 2026 2025 RMB’000 RMB’000 (Restated) Current tax expense PRC income tax for the period 63,952 50,807 Under provision in prior years 9,570 – Deferred tax credit (18,379) (2,392) 55,143 48,415 11. DIVIDENDS During the current interim period, a final dividend of RMB0.19 cents (the six months ended June 30, 2025: RMB2.22 cents) per ordinary share amounting to RMB8,130,000 (the six months ended June 30, 2025: a special dividend of RMB94,907,000 in respect of the year ended December 31, 2024) in respect of the year ended December 31, 2025 was declared and paid to the owners of the Company. Subsequent to the end of the reporting period, the Directors have determined that an interim dividend of RMB1.44 cents per share amounting to RMB61,231,000 (the six months ended June 30, 2025: RMB8,561,000) will be distributable in September 2026.
Page 17
17 12. EARNINGS PER SHARE The calculation of the basic and diluted earnings per share attributable to the ordinary shareholders of the Company is based on the following data: Six months ended June 30 2026 2025 (Restated) Earnings Profit attributable to the owners of the Company (RMB’000) 203,971 24,877 Number of shares Weighted average number of ordinary shares for the purpose of basic earnings per share 4,273,252,845 4,339,058,425 Effect of dilutive potential ordinary shares: Equity-settled share-based payment 3,661,980 – Weighted average number of ordinary shares for the purpose of diluted earnings per share 4,276,914,825 4,339,058,425 No diluted earnings per share for six months period ended June 30, 2025 were presented as there were no potential ordinary shares in issue. The effect of treasury shares has been included in the calculation of weighted average number of ordinary shares in issue. 13. PROPERTY, PLANT AND EQUIPMENT AND INVESTMENT PROPERTIES During the current interim period, the Group acquired property, plant and equipment amounting to approximately RMB1,447 million (six months ended June 30, 2025 (restated): RMB841 million). The Group ’s investment properties at the end of the current interim period were valued by the Directors. The resulting decrease in fair value of investment properties of RMB3 million (six months ended June 30, 2025 (restated): RMB2 million) has been recognised directly in profit or loss for the six months ended June 30, 2026. Details of the pledged property, plant and equipment and investment properties are set out in note 21.
Page 18
18 14. OTHER LONG-TERM RECEIVABLES AND PREPAYMENTS June 30, 2026 December 31, 2025 RMB’000 RMB’000 (Restated) Prepayments for property, plant and equipment 184,772 76,039 Prepayments for leasehold land 27,671 27,671 Deposits for other loans 328,467 333,791 Government grants (Note) 67,485 76,387 Others 85,278 107,624 Less: Allowance for credit losses (1,773) (1,773) 691,900 619,739 Note: During the six months period ended June 30, 2025, the Group was granted a government assistance amounting to RMB119 million after fulfillment of eligible conditions of investment in certain companies for 3 years, of which RMB31 million was received in 2025, RMB23 million will be received within one year, and the remaining RMB67 million recognized based on discounted amount is payable in instalment over period of 1 to 5 years and represented as non-current assets. 15. FINANCIAL ASSETS/LIABILITIES AT FVTPL June 30, 2026 December 31, 2025 RMB’000 RMB’000 (Restated) Non-current assets Listed equity securities 86,266 23,344 Unlisted equity investment 75,494 76,048 Private equity investment funds 200,130 115,135 Wealth management products 114,649 119,225 476,539 333,752 Current assets Futures contracts 153 37 Current liabilities Futures contracts (75) (2,397)
Page 19
19 16. OTHER RECEIVABLES/TRADE AND BILLS RECEIVABLES MEASURED AT FVTOCI June 30, 2026 December 31, 2025 RMB’000 RMB’000 (Restated) Trade receivables measured at FVTOCI 996,416 1,043,660 Bills receivables measured at FVTOCI 953,372 584,989 Trade and bills receivables measured at FVTOCI 1,949,788 1,628,649 Prepayments for raw materials 8,468,921 6,415,990 Other deposits, prepayments and other receivables 967,396 1,116,285 Loan receivables 400,000 400,000 Prepayments on behalf of third parties as a trading agency 3,497,353 2,261,914 Deductible input VAT and prepaid other taxes and charges 665,276 387,762 Less: Impairment (41,434) (44,763) Other receivables 13,957,512 10,537,188 The customers usually settle the sales by cash or bills. The credit period granted to the customers who settle in cash is usually no more than 30 days, interest free with no collateral. Aging analysis of trade receivables presented based on invoice dates, which approximated the respective revenue recognition dates, is as follows: June 30, 2026 December 31, 2025 RMB’000 RMB’000 (Restated) Within one month 776,499 924,444 2 to 3 months 135,279 95,879 4 to 6 months 52,895 7,737 7 to 12 months 30,954 14,382 1 to 2 years 789 1,218 996,416 1,043,660
Page 20
20 17. RESTRICTED BANK BALANCES/BANK DEPOSITS a. Restricted bank balances The carrying amounts of the Group ’s restricted bank balances placed to secure various liabilities of the Group are as follows: June 30, 2026 December 31, 2025 RMB’000 RMB’000 (Restated) Restricted bank balances to secure: Bills payable and letters of credit (Note) 4,807,840 2,552,672 Bank loans 387,203 415,604 Futures contracts 130,881 150,395 5,325,924 3,118,671 Analyzed for reporting purpose as: Current assets 5,325,924 3,118,671 Note: Certain restricted bank balances were placed to secure bills issued among subsidiaries of the Group for intra-group transactions which have been discounted with full recourse to secure bank loans of RMB7,729,283,000 (December 31, 2025: RMB6,281,909,000) as at June 30, 2026. Restricted bank balances are bank deposits mainly in the PRC and the remittance of these funds out of the PRC is subject to the exchange restrictions imposed by the PRC government. These bank deposits carry interest at market rates ranging from 0.85% to 2.30% per annum as at June 30, 2026 (December 31, 2025: 0.85% to 2.30% per annum). b. Bank deposits The bank deposits are with initial maturity of more than three months but within one year and carry interest at rates ranging from 0.01% to 3.28% (December 31, 2025: 0.01% to 3.66%).
Page 21
21 18. TRADE AND OTHER PAYABLES June 30, 2026 December 31, 2025 RMB’000 RMB’000 (Restated) Trade payables 3,328,209 2,834,102 Payables to be settled by the endorsed bills receivable 96,263 142,638 Bills payable 3,558,916 2,758,575 Payables for construction in progress 1,820,957 2,214,167 Payables on behalf of third parties as a trading agency 872,568 118,627 Advances from customers on behalf of third parties as a trading agency 506,843 354,684 Other tax payables 114,781 79,140 Payroll payables 73,488 93,727 Other payables and accruals (Note) 686,244 756,705 11,058,269 9,352,365 Analyzed for reporting purposes as: Current liabilities 10,957,249 9,249,520 Non-current liabilities 101,020 102,845 Note: Included in other payables and accruals were payables amounting to RMB101 million in relation to modification of payables to third parties in November 2025. Pursuant to supplementary agreements, the balance will be settled in December 2027. All trade payables are due within one year. The credit period on purchases of raw materials is ranging from 30 to 90 days. The following is an aging analysis of trade payables based on the invoice date at the end of each reporting period: June 30, 2026 December 31, 2025 RMB’000 RMB’000 (Restated) Within 3 months 2,972,403 2,514,507 3 to 6 months 161,028 28,562 6 to 12 months 70,434 155,552 1 to 2 years 81,410 78,199 2 to 3 years 16,460 30,997 More than 3 years 26,474 26,285 3,328,209 2,834,102 19. BANK AND OTHER LOANS During the current interim period, the Group received the proceeds amounting to approximately RMB21,280 million (six months ended June 30, 2025: RMB16,449 million) related to its renewed and newly obtained bank and other loans, and made repayments amounting to approximately RMB16,363 million (six months ended June 30, 2025 (restated): RMB11,633 million), with a net exchange gain of RMB4 million (six months ended June 30, 2025: net exchange loss of RMB1 million). The loans carry interest at the rate ranging from 2.15% to 8.50% (December 31, 2025: 1.70% to 8.50%) per annum and are repayable in instalments over a period of 1 to 15 years.
Page 22
22 As at June 30, 2026, bank loan of RMB2,033 million (December 31, 2025: RMB1,373 million) was guaranteed by related parties. Details of the assets pledged for securing the bank and other loans of the Group are set out in note 21. 20. SHARE CAPITAL As at As at June 30, 2026 December 31, 2025 June 30, 2026 December 31, 2025 Number of shares Number of shares HKD’000 HKD’000 Authorized Shares of HKD0.10 each Authorized ordinary shares: At the beginning and end of the period/year 10,000,000,000 10,000,000,000 1,000,000 1,000,000 Issued and fully paid of ordinary shares: At the beginning and the end of the period/year 4,454,186,000 4,454,186,000 445,419 445,419 June 30, 2026 December 31, 2025 RMB’000 RMB’000 Presented in the condensed consolidated statement of financial position: At the beginning and the end of the period/year 385,172 385,172 Note: During the current interim period, the Company repurchased 22,646,000 (six months ended June 30, 2025: 50,928,000) ordinary shares with an aggregate consideration of RMB41,940,000 (six months ended June 30, 2025: 116,910,000) paid. As at June 30, 2026, 212,635,000 (six months ended June 30, 2025: 160,664,000) ordinary shares were repurchased as treasury stocks, of which 14,418,000 shares were granted to directors and eligible employees under the Company ’s share award plan, and the remaining treasury stocks were not granted nor cancelled. 21. PLEDGE OF ASSETS At the end of each reporting period, certain Group ’s assets were pledged to secure bank and other loans, bills payable and other facilities granted to the Group and their carrying amounts are as follows: June 30, 2026 December 31, 2025 RMB’000 RMB’000 (Restated) Property, plant and equipment 9,774,363 9,098,820 Right-of-use assets 660,377 482,042 Investment properties 1,670,619 1,680,271 Inventories 180,000 140,000 Trade receivables 393,585 783,623 Restricted bank balances 5,195,043 2,968,276 17,873,987 15,153,032
Page 23
23 MANAGEMENT DISCUSSION AND ANALYSIS OVERVIEW The Group is an integrated producer and supplier of coke, coking chemicals, refined chemicals and new energy (including hydrogen energy) products, as well as a provider of relevant operation management services in China. The Group is the world ’s largest independent producer and supplier of coke by production/processing volume in 2025 # and this remarkable leading position in the independent coke industry has been maintained for thirty-one years since 1995. During the Reporting Period, the Group held several leading positions in coke, refined chemicals and hydrogen-energy products sectors in China or globally as follows: Name of products Industry position 1) Coke World ’s largest independent producer and supplier 2) Coking crude benzene World ’s largest processor 3) High temperature coal tar World ’s second largest processor 4) Caprolactam World ’s second largest producer 5) 2-Amino-2-Methyl-1-Propanol World’s second largest producer (by production capacity) 6) Coke-oven-gas-based methanol China ’s largest producer 7) Industrial-naphthalene-based phthalic anhydride China ’s largest producer 8) High purified hydrogen China ’s second largest producer The Group is also an operation management service provider to third-party independent coke producers and/or refined chemicals producers in order to enhance the Group ’s influence, market share and discourse in these industries. At the end of the Reporting Period, the Group was providing operation management services to three coke producers and four refined chemicals producers. During the Current Period, the net profit increased by approximately RMB193.1 million or approximately 376.0% as compared to the Last Period. The average price of the Group ’s coke products rose to approximately RMB1,515.0/ton (tax exclusive), up approximately 11.3% from the Last Period. The Group controlled its blended coal prices through various effective means, maintaining a coal-coke price spread of approximately RMB300/ton or above, broadly consistent with the prior year level. Benefiting from the prominent cost advantages of coal to chemical operations for the Group ’s chemical products, the margin spread of chemical production lines widened. The average price of caprolactam increased by RMB1,138.2/ton to RMB9,701.3/ton, representing a rise of approximately 13.3% compared with the prior period. By virtue of supply chain management and internal synergy, the Group effectively controlled the purchase price of externally sourced pure benzene, which remained largely unchanged from the prior year level. # According to the industry report prepared by Frost & Sullivan (Beijing) Inc., Shanghai Branch Co., an independent global consulting firm.
Page 24
24 Under the operation and management reform (the “Reform ”), the Group was coordinating the integration, expansion and transformation of the existing businesses including production/ processing capacity of coke, refined chemicals and operation management services, with a view to reinforcing the Group ’s consolidated competitive advantages and enhancing performance. Other than that, the Group was exploring capital market initiatives, such as merger and acquisition of new businesses together with restructuring of existing businesses (the “Development ”). During the Reporting Period, the Group completed the acquisition of 14.5% of issued shares of Tianjin Binhai Energy & Development Co., Ltd. (ʮ̡ ) ( “Binhai Energy ”, whose shares are listed on the Shenzhen Stock Exchange (stock code: 000695)) in June 2026. It is a strategic move into the new energy battery materials industry, which is a new and extended business for the Group, moving downstream from the refined chemicals industry to the new energy battery materials industry. Considering the operating results in the first half of 2026 and up to the date of this announcement, the recent development of China and the world ’s economy, the Group ’s future development needs as well as the Reform and Development, the Board has resolved to declare an interim dividend of RMB1.44 cents per share (equivalent to HK1.67 cents per share) with a total dividend amount of approximately RMB61,231,000 or HK$71,011,000 for the Reporting Period (for the Last Period: RMB0.20 cents per share or HK0.22 cents per share and a total dividend amount of RMB8,561,000 or HK$9,417,000), representing no less than 30% of the Group ’s net profit attributable to owners of the Company for the Current Period. BUSINESS REVIEW The Group ’s vertically integrated business model and its experience of 31 years in the coke and chemicals industry production chains enable the Group to widen the downstream refined chemicals market. As such, the Group upheld the main principle of integration of existing businesses and production bases, expansion of the downstream production and processing capacity of coke and refined chemicals together with identification of new operation management projects over third-party coke and refined chemicals producers in China and globally. In addition, the Group closely controlled the operating costs and expenditures of production bases and monitored the operating efficiency of production facilities through the Reform in order to continuously create value for the shareholders of the Company ( “Shareholders ”). The Group has now developed five major business segments, namely refined chemicals, coke, operation management services, trading and new energy products. While focusing on its core businesses, the Group continues to expand into new materials and new energy. The chemicals production capacity is 6.23 million tons, coke capacity is 20.70 million tons, operation management services capacity is 4.03 million tons, and the new energy segment includes 150,000 tons of graphitization capacity and anode material production that is 80% complete, as well as 140 million cubic meters of high-purity hydrogen and 5 tons/day of liquid hydrogen. With the addition of the new energy segment, the Group has a more complete industry value chain. Following the acquisition of Binhai Energy in the first half of 2026, Binhai Energy added production lines for green electricity, artificial graphite anodes, and anode materials. This expanded the product value chain to six major categories and 63 products, comprising 58 chemical production lines, 14 coking production lines, 6 graphitization production lines, and 5 high-purity hydrogen production lines.
Page 25
25 As at the end of the Reporting Period, the Group ’s coking coal prices rose in nine rounds and fell in two rounds, with an aggregate price increase of RMB385/ton. Benefiting from the Group ’s core competitive advantages in sales-transportation-production-supply-R&D accumulated over 31 years, the coking coal segment ’s operating revenue increased by 9.6% year-on-year, and gross profit increased by 10.5% year-on-year. Benefiting from the increase in capacity from newly added and restarted blast furnaces globally, as well as favorable factors such as India ’s cancellation of quota policies, the profitability of overseas coking coal business has significantly improved, with both sales volume and price rising. Risun Wei Shan (Indonesia) Limited ( ϛජਃʆ (Ι̵)ʮ̡ *) ( “Risun Wei Shan ”) in Indonesia recorded year-on-year increase in revenue, net profit attributable to the parent company and sales volume of 976%, 1,854% and 61%, respectively. The Group has established and consolidated its leading positions in several areas of basic chemicals sector and is expanding into downstream new materials through innovative R&D. Its amino alcohol new material, which is the largest in China and a first of its kind globally, not only achieved year-on-year growth in sales volume and customer numbers in the first half of this year, but also expanded its export markets to South America and Southeast Asia, thereby further broadening its downstream application market. It now supplies to battery, carbon capture, electronic cleaning, high-end pharmaceutical, and cosmetic fields, thus expanding its industry influence. Meanwhile, the Group ’s independently developed and innovative process for producing 50,000 tons/year of hexamethylenediamine officially commenced production during the Current Period. It has already achieved full production and sales, and its quality has been widely recognized by downstream customers. Furthermore, the chemicals industry responded to the national call to combat internal competition, most notably in the caprolactam and benzene hydrogenation sectors, by reducing production to maintain prices and stabilize supply and demand, resulting in a recovery in both prices and profitability. The Group ’s methanol feedstock is coke oven gas, and its annual production capacity of 600,000 tons ranks first in the country. Production has remained stable for many years, producing high-quality methanol suitable for electronic applications. The Group is fully self-sufficient in raw materials and is the only futures delivery warehouse in Hebei Province, enabling synergy between futures and spot markets and increasing profitability. This year, driven by reduced supply and increased demand, methanol prices have risen. The Group possesses a stable raw material supply and cost advantage, and the methanol-producing methanol-ammonia production line offers considerable profits. Adhering to the overall strategy of “multi-faceted growth, multi-industry development, and multi-regional layout ”, the Group completed the acquisition of Binhai Energy in the first half of this year. This acquisition will bring capital synergies and competitive advantages to the future development of both listed companies, further enriching the corporate value in Hong Kong and Mainland stock markets. In the first half of this year, graphitization and anode material products not only achieved year-on-year growth in both production capacity and sales volume, but also revenue increased by 78% year-on-year. Meanwhile, the first phase of the nation ’s only 580MW power generation, grid, load, and storage project, with a capacity of 150MW, officially commenced grid-connection trial operation, further reducing costs and increasing efficiency, and enhancing the profitability of the new energy business segment.
Page 26
26 Five major business segments of the Group are set out as follows: 1) coke and coking chemicals manufacturing: the production and sale of coke and a series of coking chemicals from externally sourced coking coals processed at the Group ’s coking facilities; 2) refined chemicals manufacturing: the processing of coking chemicals, sourced from the Group’s coke and coking chemicals manufacturing segment and third parties, into refined chemicals products at the Group ’s refined chemicals facilities, as well as marketing and sale of such refined chemicals; 3) operation management: the operation management services provided to the third-party plants, and the sale of coke, coking chemicals and refined chemicals produced by these plants under the management service agreements and commissioned processing contracts; 4) trading: the sourcing of coke, coking chemicals and refined chemicals from third parties and the marketing, sale and distribution of them; and 5) new energy products manufacturing: the production and sale of new energy and hydrogen-energy products at the Group ’s new energy battery materials and related facilities. The Group maintained four production chains of refined chemicals and new energy products. The classification of these four products is as follows: 1) Carbon material chemicals: Coal tar pitch, industrial-naphthalene-based phthalic anhydride, carbon black oil 2) Alcohol-ammonia chemicals: Methanol, synthetic ammonia, 2-Amino-2-Methyl-1-Propanol 3) Aromatic chemicals: Benzene hydrogenation, cyclohexane, cyclohexanone, styrene, caprolactam, polyamide 6, hexamethylenediamine 4) New energy products: Lithium battery anode materials, high purified hydrogen, liquid hydrogen
Page 27
27 Below is the table summarizing the key corporate activities of the Group for the Reporting Period and up to the date of this announcement: Time Corporate Activities January 2026 – Second grant of share awards A total of 4,503,000 share awards was granted to 600 eligible participants under the share award plan adopted pursuant to an ordinary resolution passed by the Shareholders on May 30, 2025 (the “Share Award Plan ”). April 2026 – Acquisition of shares in Binhai Energy and strategic move into the new energy battery materials industry Risun Group, a wholly-owned subsidiary of the Company, entered into a share transfer agreement with Xuyang Holding, pursuant to which Risun Group has agreed to acquire and Xuyang Holding has agreed to sell 33,600,000 shares in Binhai Energy, representing approximately 14.50% of the total issued shares of Binhai Energy, at a total consideration of RMB571.2 million. June 2026 – Capital injection to Hebei Risun Energy Co., Ltd.* (ʮ ̡) (“Hebei Risun Energy ”) Zhangzhou Gulei Port Economic Development Zone Guozhi Qixu Equity Investment Partnership (Limited Partnership)* (ᛆҳ༟ΥྫΆุ (Υྫ )) agreed to make a cash capital injection of RMB495,000,000 into Hebei Risun Energy. The average selling prices (net of VAT) of the Group ’s major products during the Reporting Period are as follows: RMB per ton Coke 1,515.0 Benzene 6,699.7 Coal tar pitch 4,315.5 Caprolactam 9,701.3 2-Amino-2-Methyl-1-Propanol (per kilogram) 98.6 Methanol 2,220.9 Phthalic anhydride 6,046.8 Synthetic ammonia 1,697.1 Styrene 7,702.1 Hydrogen-energy products (per cube meter) 2.1 DEVELOPMENT STRATEGIES Founded in 1995 and up to 2026, the Group has a more than 31-years history of development to leverage leading position, experience, technology and digitalization in coke, refined chemicals and new energy products industries to drastically expand its five major business segments through the following development strategies: (i) expansion of business operation and production capacity (including high value-added chemicals products and hydrogen-energy products); (ii) capitalization of market opportunities to provide operation management services;
Page 28
28 (iii) development and reinforcement of long-term business relationships with the major customers and suppliers; (iv) expansion of domestic and international trading business; (v) improvement of its energy-efficiency, environmental protection and operation safety standards; and (vi) enhancement of its core competitive strengths through automation and information technologies. The above development strategies are deployed based on the Group ’s competitive advantages arising from integrated business model and are designed to diversify the risks across the production bases in China and overseas. COMPETITIVE ADVANTAGES In addition to the above development strategies, the Group believes that there are nine competitive advantages that enable it to deploy and execute these development strategies effectively to enhance its leadership in the coke, refined chemicals and new energy products (including hydrogen-energy products) industries: 1. Economies of Scale Advantage The Group is the world ’s largest independent coke producer and supplier by production/ processing volume and enjoys economies of scale that enable it to be more competitive in terms of costs, product quality and customer relationships across its nine production bases in China and overseas. 2. Vertically Integrated Advantage The vertically integrated business model helps improve the Group ’s production efficiency and achieve synergies through centralized and unified management and reducing exposure to market volatility and price fluctuations. 3. Production Base Advantage Almost all of the production bases are in industrial parks approved by local government authorities. The production bases are located close to most of the major customers and suppliers and transportation infrastructure, such as national railway networks, major highways, expressways and ports, which provide the Group with multiple transportation options to achieve the optimal cost of transportation. 4. Cost Control Advantage The Group actively controls the costs of sales and services, selling and distribution expenses, administrative expenses, finance costs and income tax expenses. Leveraging its IT infrastructure and experience, the Group has developed a comprehensive and mature coal preparation and blending computer system to widen the price spread between its products and raw materials in the coke, refined chemicals and new energy products industries.
Page 29
29 5. Centralized Sale and Marketing Advantage The Group is market-oriented, and all the products are sold under the brand “RISUN ” via the centralized sale and marketing system operated by the Group. The Group maintains low levels of finished product inventories, adopts a “zero inventory ” policy and strives to achieve minimal inventory of the Group ’s coke products. The Group produces based on the periodical production plans which are adjusted regularly pursuant to the customers ’ demands. 6. Innovation Advantage The research and technology personnel focuses on the innovation of production and energy and resource efficiency to improve its manufacturing processes and reduce the environmental impact of its production processes. The Group is also committed to improving product added value and extending the industrial value chain. 7. Automation and Information Technologies Advantage The production bases are highly automated, and the Group has established a centralized system connecting its Manufacturing Execution System (MES), Enterprise Resource Planning (ERP) systems and the BeiDou Navigation Satellite System. The Group also uses the mobile internet, cloud computing, internet of things, big data and intelligent manufacturing technologies in its operations. 8. Environmental Safety Advantage The Group adopts a number of measures and practices to reduce the environmental impact of its operations on the environment, such as preventing soil pollution, water pollution and air pollution in order to minimize the negative impact on the environment. Another key environmental measure of the Group is resource recovery and re-utilization. During the coking process, the Group recovers and re-utilizes valuable coking by-products to manufacture refined chemical products. With the vertically integrated business model, the Group also re-utilizes the heat from its production processes and re-use wastewater and other fluids after appropriate treatment. 9. Risk Mitigation Advantage The Group monitors the business operations of its customers, including but not limited to their inventory levels, production output and sales volumes, via its on-site customer service personnel. This helps promptly understand the downstream demand for the Group ’s products, adjust its production plans and mitigate the risks associated with price fluctuations and changes in demand for its products. BUSINESS PROSPECTS Looking forward to its seventh “Five-Year Plan from 2026 to 2030 ”, the Group will utilize various methods, including operation and management arrangements, mergers and acquisitions, and the establishment of joint ventures with well-known geographical large enterprises, to increase its market share, measured by production/processing volume, in coke, refined chemicals and new energy products (including hydrogen-energy products).
Page 30
30 In the second half of 2026, the Group will continue to advance the construction of a 2,000-ton/year silicon-carbon material production line, a 1,000-ton/year porous carbon material production line, a 20-ton/year integrated anode material production line, and the supporting phase II 430MW power generation, grid-load, and energy storage project, thereby further expanding its product value chain layout. Coke Looking forwards, the Group, just like the leading corporations in other manufacturing industries, can usually benefit from the uncertainty environment and competitions by its own competitive advantages as discussed above. Although there is still overcapacity in the coke industry, the Group still maintains a strong entrepreneurial passion and fighting spirit, which is primary driving force towards the future. The Group will continue monitoring the coke market very closely and capture any market opportunities, especially when the involution in the PRC is being curbed due to unusual price cuts, coupled with the increasing demand from customers and the elimination of obsolete production capacity, by increasing the Group ’s sales volume of coke and implementing appropriate and market-affordable increments of coke selling price at RMB50 per ton each time. Refined chemicals Following the strategy in the Current Period, the Group will continue the R&D and production of refined chemicals in high-value with sustainable demand, such as amino alcohol, which is widely used in high-end coatings, metal processing, pharmaceutical pesticides and cosmetics, which can greatly improve their comprehensive performance in terms of the color uniformity and reduction of volatile organic compounds. New Energy products Focusing on the rapid development of hydrogen-energy industry in Beijing-Tianjin-Hebei area, the Group is committed to developing from production, storage, transportation, hydrogenation to usage together with radiation of intelligent supply of hydrogen to the whole country with advanced technology and more customer-oriented services. In the future, the Group will explore the opportunities to construct hydrogen-energy mother island and integrated energy station in Beijing-Tianjin-Hebei area together with mergers and acquisitions with other leading companies specializing in the hydrogen industry. For the battery materials products, the Group will focus on the core construction of silicon- carbon materials project of 2,000 tons/year, porous carbon materials project of a 1,000 tons/ year, an integrated anode materials project of 300,000 tons/year, and a supporting 580MW power generation, grid, load, and energy storage system. Upon completion of these projects the Group ’s product portfolio in the field of new energy battery materials will be further enhanced, its cost and supply chain advantages in “green electricity + materials ” will be strengthened. The new production capacity will strongly support for the rapid expansion of the Group ’s third growth curve.
Page 31
31 DEVELOPMENT, PERFORMANCE AND STATUS OF THE BUSINESS OF THE GROUP The following table sets forth the Group ’s financial ratios as at the dates and for the periods indicated: For the six months ended June 30, 2026 2025 (Restated) Financial indicators Gross profit margin (1) 10.6% 8.1% Net profit margin (2) 1.1% 0.2% EBITDA margin (3) 9.8% 8.9% Return on equity (4) 3.4% 0.4% As at June 30, 2026 As at December 31, 2025 (Restated) Gearing ratio (5) 2.6 2.3 Debt-to-asset ratio (6) 78.5% 76.5% Notes: (1) Gross profit margin is calculated by dividing gross profit by revenue for the period. (2) Net profit margin is calculated by dividing profit for the period by revenue for the period. (3) EBITDA margin is calculated by dividing earnings before interest, tax, depreciation and amortization (“EBITDA ”) by revenue for the period. (4) Return on equity is calculated by dividing profit attributable to owners of the Company for the period or annualized period by equity attributable to owners of the Company as of the end of the period. (5) Gearing ratio is calculated by dividing total interest-bearing borrowings by total equity as of the end of the period/year. (6) Debt-to-asset ratio is calculated by dividing total debts by total assets as of the end of the period/year.
Page 32
32 FINANCIAL REVIEW The following table sets forth our total revenue and gross profit by business segment (excluding the inter-segment revenue): For the six months ended June 30, 2026 Coke and coking chemicals manufacturing Refined chemicals manufacturing Operation management services Trading New energy products manufacturing Others Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Total revenue 6,965,556 9,475,342 1,862,657 2,976,912 523,300 52,097 21,855,864 Gross profit 952,582 925,571 150,231 192,721 58,262 31,957 2,311,324 For the six months ended June 30, 2025 (Restated and unaudited) Coke and coking chemicals manufacturing Refined chemicals manufacturing Operation management services Trading New energy products manufacturing Others Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Total revenue 6,357,591 9,096,043 1,274,539 3,730,359 234,767 90,078 20,783,377 Gross profit/(loss) 862,006 654,625 61,412 88,927 (12,949) 23,949 1,677,970 The following discussion addresses the principal trends that have affected our results of operations during the Reporting Period. 1. Revenue Revenue for the Reporting Period increased to RMB21,855.9 million, as compared to RMB20,783.4 million for the Last Period. Revenue from the coke and coking chemicals manufacturing business increased by RMB608.0 million, or 9.6%, from RMB6,357.6 million for the Last Period to RMB6,965.6 million for the Reporting Period. This was mainly attributable to a RMB153.8 per-ton, or 11.3% increase in coke prices as compared with the Last Period. During the Reporting Period, driven by tightened supply of coking coal on the cost side and the resulting rigid cost inflation, multiple rounds of coke price hikes were implemented. Revenue from the refined chemicals manufacturing business increased by RMB379.3 million, or 4.2%, from RMB9,096.0 million for the Last Period to RMB9,475.3 million for the Reporting Period, primarily due to year-on-year increases in the average selling prices of caprolactam and styrene by 13.3% and 10.4%, respectively. This was mainly driven by the upward price trend of upstream pure benzene and cyclohexanone, which directly lifted the production costs of caprolactam and provided strong cost-side support for product prices. Revenue from the operation and management business increased by RMB588.2 million, or 46.2%, from RMB1,274.5 million for the Last Period to RMB1,862.7 million for the Reporting Period, primarily due to the addition of the management and operation project for Wulong Magnesium ( ʞᎲᒝุ ) during the Reporting Period.
Page 33
33 Revenue from the trading business decreased by RMB753.5 million, or 20.2%, from RMB3,730.4 million for the Last Period to RMB2,976.9 million for the Reporting Period. This was primarily attributable to the Group ’s ongoing efforts to optimize its trading business structure and proactively scale back low-gross-margin projects, which led to a year-on-year decline in revenue during the Reporting Period. Revenue from the new energy business increased by RMB288.5 million, or 122.9%, from RMB234.8 million for the Last Period to RMB523.3 million for the Reporting Period. This was primarily attributable to expanded graphitization capacity and higher shipment volumes for self-produced anode materials and graphitization processing business. Revenue from other businesses decreased by RMB38.0 million, or 42.2%, from RMB90.1 million for the Last Period to RMB52.1 million for the Reporting Period, primarily due to the fact that the completed properties have been mostly sold while properties under construction have not yet been delivered. Therefore, revenue from sales of commercial properties decreased by RMB44.0 million year-on-year. 2. Cost of sales Cost of sales for the Reporting Period increased to RMB19,544.5 million, as compared to RMB19,105.4 million for the Last Period. Cost of sales for the coke and coking chemicals manufacturing business increased by RMB517.4 million, or 9.4%, from RMB5,495.6 million for the Last Period to RMB6,013.0 million for the Reporting Period. This was primarily attributable to mine safety incidents in Shanxi Province, which led the state to strengthen safety-production remediation efforts for coal mines, keeping coal market prices at elevated levels. Upstream coking coal market prices rose further, pushing up coal-blending procurement costs. Cost of sales for the refined chemicals manufacturing business increased by RMB108.4 million, or 1.3%, from RMB8,441.4 million for the Last Period to RMB8,549.8 million for the Reporting Period, primarily due to the increase in raw material costs across various chemical production lines. Cost of sales for the operation and management business increased by RMB499.3 million, or 41.2%, from RMB1,213.1 million for the Last Period to RMB1,712.4 million for the Reporting Period, primarily due to the addition of the management and operation project for Wulong Magnesium ( ʞᎲᒝุ ) during the Reporting Period. Cost of sales for the trading business decreased by RMB857.2 million, or 23.5%, from RMB3,641.4 million for the Last Period to RMB2,784.2 million for the Reporting Period, primarily due to the Group ’s efforts to optimize the trading business structure and proactively reduce low-gross-margin projects, resulting in a year-on-year decrease in cost of sales for the Current Period. Cost of sales and services for the new energy business increased by RMB217.3 million, or 87.7%, from RMB247.7 million for the Last Period to RMB465.0 million for the Reporting Period. This was primarily due to the gradual release of production capacity, driven by the advantages of new production processes and equipment for anode materials, which resulted in a decrease in unit production costs.
Page 34
34 Cost of sales for other businesses decreased by RMB46.0 million, or 69.6%, from RMB66.1 million for the Last Period to RMB20.1 million for the Reporting Period, primarily due to the decrease in real estate sales, with corresponding costs decreasing by RMB46.5 million. 3. Gross profit and gross profit margin The Group ’s total gross profit increased by approximately RMB633.3 million, or 37.7%, from approximately RMB1,678.0 million for the Last Period to approximately RMB2,311.3 million for the Reporting Period. The gross profit margin increased from 8.1% for the Last Period to 10.6% for the Reporting Period. Gross profit from the coke and coking chemicals manufacturing business increased by RMB90.6 million, or 10.5%, from RMB862.0 million for the Last Period to RMB952.6 million for the Reporting Period. The gross profit margin of the coke and coking chemicals manufacturing business increased from 13.6% for the Last Period to 13.7% for the Reporting Period, primarily due to the coal-coke price spread remaining basically at the same level as the Last Period. Gross profit from the refined chemicals manufacturing business increased by RMB271.0 million, or 41.4%, from RMB654.6 million for the Last Period to RMB925.6 million for the Reporting Period. The gross profit margin of the refined chemicals manufacturing business increased from 7.2% for the Last Period to 9.8% for the Reporting Period, primarily due to changes in external market conditions, the enhanced competitiveness of coal-to-chemicals operations and industry self-discipline, which widened the price spread for caprolactam and other chemical product lines and consequently lifted both gross profit and gross profit margin. Gross profit from the operation and management business increased by RMB88.8 million, or 144.6%, from RMB61.4 million for the Last Period to RMB150.2 million for the Reporting Period. The gross profit margin of the operation and management business increased from 4.8% for the Last Period to 8.1% for the Reporting Period, primarily due to the widening of price spread of the Cornell aniline production line. Gross profit from the trading business increased by RMB103.8 million, or 116.8%, from RMB88.9 million for the Last Period to RMB192.7 million for the Reporting Period, with the gross profit margin increasing from 2.4% for the Last Period to 6.5%. This was primarily due to the Group ’s continued efforts to optimize the trading business structure and increase high-gross-margin project volumes, resulting in increases in both gross profit and gross profit margin for the Reporting Period. Gross profit from the new energy business increased by RMB71.2 million, or 551.9%, from a loss of RMB12.9 million for the Last Period to a profit of RMB58.3 million for the Reporting Period, with the gross profit margin increasing from (5.5%) for the Last Period to 11.1%. This was primarily attributable to the increase in business volume for anode materials and the decrease in unit costs.
Page 35
35 Gross profit from other businesses increased by RMB8.0 million, or 33.3%, from RMB24.0 million for the Last Period to RMB32.0 million for the Reporting Period. The gross profit margin of other businesses increased from 26.6% for the Last Period to 61.4% for the Reporting Period. This was primarily because leasing business maintained a high gross profit margin, while real estate sales business, which had a relatively low gross margin, saw a decline in its contribution to overall gross profit of the segment due to reduced sales volume as stated above, thereby increasing the comprehensive gross margin of the segment as a whole. 4. Other income The Group ’s other income mainly includes interest income, income from production waste sales, VAT concessions and government grants received from various government agencies. Other income decreased by RMB220.9 million, or 64.7%, from RMB341.5 million for the Last Period to RMB120.6 million for the Reporting Period. This was primarily due to the tightening of the additional VAT deduction policy for advanced manufacturing during the Reporting Period. In addition, during the Last Period, Yuncheng Production Base ( ⌢ ਜ) was granted a special fund compensation of RMB119 million by the Yuncheng County government for projects such as environmental protection treatment, automation and intelligent enhancement invested since the Group ’s entry into Yuncheng, where as no such special compensation was granted during the Reporting Period. 5. Other gains and losses During the Reporting Period, the Group recognized other losses of RMB97.3 million, primarily due to an impairment loss of RMB88.1 million on certain construction projects. During the Current Period, the Group determined to terminate the construction of Tangshan petrochemical refining project and related supporting facilities, taking into consideration the tightening of industry policy controls, and therefore recognized an impairment loss for such construction projects. 6. Impairment losses (including reversals of impairment losses) on financial assets The amount for the Current Period mainly includes impairment losses on accounts receivable. The impairment changed from losses of RMB14.4 million recognized in the Last Period to losses of RMB7.5 million recognized in the Reporting Period. 7. Selling and distribution expenses Selling and distribution expenses increased by RMB53.3 million, or 7.6%, from RMB705.6 million for the Last Period to RMB758.9 million for the Reporting Period. This was primarily due to the increase in fixed-price transportation costs for railway transport. 8. Administrative expenses The Group ’s administrative expenses decreased by approximately RMB49.8 million, or 8.9%, from approximately RMB561.0 million for the Last Period to approximately RMB511.2 million for the Reporting Period, primarily due to the Group ’s implementation of cost control measures to reduce various expenses.
Page 36
36 9. Finance costs Finance costs mainly include interest expenses on bank loans, interest expenses on other loans and financial expenses for discounted bills receivable. The Group ’s finance costs increased from RMB705.1 million for the Last Period to RMB796.3 million for the Reporting Period, an increase of RMB91.2 million, or 12.9%. This was primarily due to the increase in the scale of interest-bearing liabilities, partially offset by cost savings from lower financing rates. 10. Share of results of associates The share of results of associates increased from a profit of RMB9.7 million for the Last Period to a profit of RMB35.6 million for the Reporting Period, primarily due to the improvement in the operating performance of Yangmei Group Shouyang Jingfu Coal Co., Ltd., which achieved profitability in the Current Period, as compared to a loss in the Last Period. 11. Share of results of joint ventures The share of results of joint ventures decreased from a profit of RMB6.3 million for the Last Period to a profit of RMB3.0 million for the Reporting Period, primarily due to the increase in financial expenses of Risun Wei Shan, which resulted in a decrease in that company ’s net profit and a corresponding decrease in the Group ’s investment income. 12. Profit before taxation As a result of the foregoing, profit before taxation increased by approximately RMB199.7 million, or 200.1%, from RMB99.8 million for the Last Period to approximately RMB299.5 million for the Reporting Period. 13. Income tax expense For the Last Period and the Reporting Period, the Group incurred income tax expense of RMB48.4 million and RMB55.1 million, respectively, with effective tax rates of 57.7% and 21.1%, respectively. The increase in income tax expense was primarily due to the increase in profit before taxation. 14. Profit for the period As a result of the foregoing, net profit increased by approximately RMB193.1 million, or approximately 376.0%, from RMB51.3 million for the Last Period to approximately RMB244.4 million for the Reporting Period. 15. Earnings per share – Basic Basic earnings per share for the Reporting Period and the Last Period were RMB4.77 cents and RMB0.57 cents, respectively. The increase in basic earnings per share was due to the increase in net profit.
Page 37
37 LIQUIDITY AND FINANCIAL RESOURCES The Group ’s cash is primarily used to fund operating costs, capital expenditures and repayment of debts in the PRC. As at June 30, 2026, the Group principally funded its investments and operations with cash generated from operations and debt financing from banks and other financial institutions. The Group believes that the liquidity requirements will be satisfied through a combination of cash flows generated from operating activities, bank loans and other borrowings. Any significant decrease in the demand for, or pricing of, its products and services, or a significant decrease in the availability of bank loans, may adversely impact the liquidity. As at June 30, 2026, cash and cash equivalents held by the Group were mainly cash at banks and on hand denominated in RMB, and deposits denominated in RMB that are readily convertible into cash. The following table sets forth the cash flows for the periods indicated: For the six months ended June 30, 2026 2025 RMB’000 RMB’000 (Restated) Net cash generated from operating activities 2,526,742 1,861,250 Net cash used in investing activities (4,556,140) (5,612,966) Net cash generated from financing activities 4,901,977 3,990,939 Net increase in cash and cash equivalents 2,872,579 239,223 Cash and cash equivalents at the beginning of the period 1,588,529 2,092,896 Effect of foreign exchange rate changes (6,506) (418) Cash and cash equivalents at the end of the period 4,454,602 2,331,701 (a) Net cash generated from operating activities For the Reporting Period, net cash generated from operating activities was approximately RMB2,526.7 million, an increase of approximately RMB665.5 million as compared to the Last Period, primarily due to the increase in gross profit of RMB633.4 million. (b) Net cash used in investing activities Net cash used in investing activities decreased from approximately RMB5,613.0 million for the Last Period to approximately RMB4,556.1 million for the Reporting Period, primarily due to the decrease of RMB1,154.2 million in the amount of additional restricted bank balances deposited as compared to the Last Period.
Page 38
38 (c) Net cash generated from financing activities Net cash generated from financing activities increased from approximately RMB3,990.9 million for the Last Period to approximately RMB4,902.0 million for the Reporting Period, primarily due to a capital contribution from a non-controlling shareholder of RMB1,278.8 million. INDEBTEDNESS (a) Borrowings Most of our borrowings are denominated in RMB. The following table shows our bank borrowings as of the dates indicated: June 30, 2026 December 31, 2025 RMB’000 RMB’000 (Restated) Bank loans, secured 8,457,206 8,464,583 Bank loans, unsecured 17,620,694 13,698,949 26,077,900 22,163,532 Other loans, secured 6,812,391 5,804,767 Other loans, unsecured 505,309 511,689 7,317,700 6,316,456 Discounted bills financing 8,005,527 6,460,869 Total 41,401,127 34,940,857 Total borrowings increased by approximately RMB6,460.2 million, or 18.5%, to approximately RMB41,401.1 million as of June 30, 2026 from RMB34,940.9 million as of December 31, 2025. This was primarily attributable to increases in unsecured bank loans and discounted_bills financing. (b) Lease liabilities The Group had the following total future minimum lease payments as of the dates indicated: June 30, 2026 December 31, 2025 RMB’000 RMB’000 (Restated) Lease liabilities 4,041 2,207
Page 39
39 OFF-BALANCE SHEET ARRANGEMENTS As of June 30, 2026, the Group did not have any significant outstanding off-balance sheet guarantees, interest rate swap transactions, foreign currency and commodity forward contracts or other off-balance sheet arrangements. The Group does not engage in trading activities involving non-exchange traded contracts. In the course of the business operations, the Group does not enter into transactions counterparties with, or otherwise established relationships with, unconsolidated entities, or with financial established for the purpose of facilitating off-balance sheet arrangements or other narrowly defined or limited contractual purpose. PLEDGES OF ASSETS During the Reporting Period, certain of the Group ’s assets were pledged as security for bank and other loans, bills payable and other financing facilities granted to the Group. Details of the pledge of the Group ’s assets are disclosed in note 21 to the Condensed Consolidated Financial Statements in this announcement. EXPOSURE TO FLUCTUATIONS IN EXCHANGE RATES The Group maintained part of its capital in foreign currencies, mainly U.S. dollars, Japanese Yen and Hong Kong dollars. Fluctuations in exchange rates would influence the reserve in foreign currencies to a certain extent, and the Company is exploring and taking measures to address foreign exchange risk. As the exchange differences arising from the translation of foreign operations during the Reporting Period were credited to the foreign currency translation reserve, the Company ’s exposure to fluctuations in exchange rates is limited. SHARE OPTION SCHEME The Company ’s share option scheme (the “Share Option Scheme ”) was adopted pursuant to a written resolution passed by the Shareholders on February 21, 2019 for the primary purpose of providing persons and parties working for the interests of the Group with an opportunity to obtain an equity interest in the Company, thereby aligning their interests with those of the Group and providing them with incentives to work better for the Group ’s benefit. Up to June 30, 2026, no options were granted to any Directors, eligible employees and other external third parties under the Share Option Scheme. SHARE AWARD PLAN The Company ’s Share Award Plan was adopted pursuant to an ordinary resolution passed by the Shareholders on May 30, 2025 for the primary purposes of recognizing and rewarding the contributions of certain eligible participants to the growth and development of the Group, giving incentives to retain them for the continual operation and development of the Group, and attracting suitable personnel for further development of the Group. Up to June 30, 2026, share awards in respect of 14,418,000 shares were granted to eligible participants (including Directors and employees of the Group) under the Share Award Plan.
Page 40
40 COMPETING INTERESTS None of the Directors or controlling shareholders of the Company nor their respective associates (as defined under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules ”)) had any interest in a business that competes or may compete with the business of the Group. PURCHASE, SALE OR REDEMPTION OF THE COMPANY ’S LISTED SECURITIES During the Reporting Period, the Company repurchased 22,646,000 shares of the Company on The Stock Exchange of Hong Kong Limited (the “Stock Exchange ”) at the total consideration of HK$48,214,160. All of the shares repurchased during the Reporting Period were held as treasury shares. Details of the share repurchases by the Company are included in note 20 to the Condensed Consolidated Financial Statements in this announcement. As at June 30, 2026, the Company held 198,217,000 treasury shares in total and intended to resell these treasury shares for cash on the Stock Exchange or use them for the Share Award Plan in the future. Save as disclosed above, neither the Company nor any of its subsidiaries has purchased, sold or redeemed any of the listed securities of the Company (including sale of treasury shares) during the Reporting Period. EMPLOYEE AND REMUNERATION POLICY As at June 30, 2026, we had 7,285 full-time employees (as at June 30, 2025: 7,432). Most of our senior management members and employees are based in Beijing and Hebei province. The Group enters into a standard employment contract with each of the full-time employees. Remuneration for our employees includes basic wages, variable wages, bonuses, share-based payments and other benefits. For the six months ended June 30, 2026 and 2025 (restated), the staff costs were RMB626.7 million and RMB623.4 million, respectively. The Company ’s remuneration policy was formulated by the Remuneration Committee on the basis of the employees ’ performance, qualifications and competence. The emoluments of the Directors are set by the Remuneration Committee, having regard to, among others, salaries paid by comparable companies as well as the time commitment and responsibilities and employment conditions of the Group. CORPORATE GOVERNANCE PRACTICES The Corporate Governance Code (the “CG Code ”) contained in Appendix C1 to the Listing Rules sets out the principles of good corporate governance and the code provisions. The Company has adopted all code provisions as set out in the CG Code and has complied with the applicable code provisions throughout the Reporting Period, except for code provision C.2.1 under Part 2 of the CG Code.
Page 41
41 In accordance with code provision C.2.1 under Part 2 of the CG Code, the roles of the chairman and chief executive officer should be separated and should not be held by the same person. Mr. Yang Xuegang is the chairman and chief executive officer of the Company. With extensive experience in the coke, coking chemicals and refined chemicals industries, Mr. Yang is responsible for the overall management and business development, the operations of the subsidiaries of the Company and their corresponding production facilities and the human resources of the Group, and has been instrumental to the Group ’s growth and business expansion since its establishment in 1995. The Board considers that vesting the roles of chairman and chief executive officer in the same person has the benefit of ensuring consistent leadership within the Group and enables more effective and efficient overall strategic planning for and communication with the Group. The balance of power and authority is ensured by the operation of the senior management and the Board, which comprises experienced and high-caliber individuals. The Board currently comprises six executive Directors (including Mr. Yang) and three independent non-executive Directors and therefore has a strong independence element in its composition. The Board will examine and review, from time to time, the Company ’s corporate governance practices and operations in order to meet the relevant provisions under the Listing Rules and to protect the Shareholders ’ interests. COMPLIANCE WITH THE MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers (the “Model Code ”) as set out in Appendix C3 to the Listing Rules as its model code for securities transactions by the Directors and relevant employees. Specific enquiries have been made of all the Directors and they have confirmed that they have complied with the Model Code during the Reporting Period. The Company ’s employees who are likely to be in possession of unpublished inside information of the Company are also subject to the Model Code. The Company has not been aware of any incident of non-compliance of the Model Code by the employees during the Reporting Period and up to the date of this announcement. SIGNIFICANT INVESTMENTS HELD, MATERIAL ACQUISITION AND DISPOSAL OF SUBSIDIARIES, ASSOCIATED COMPANIES AND JOINT VENTURES, AND FUTURE PLANS FOR MATERIAL INVESTMENTS Save as disclosed in this announcement, there were no other significant investments held, no material acquisition or disposal of subsidiaries, associated companies and joint ventures during the Reporting Period and up to the date of this announcement. As at June 30, 2026, the Board has not authorized any plan for other material investments or additions of capital assets. CONTINGENT LIABILITIES As at June 30, 2026, the maximum liabilities of the Group under guarantees in favor of banks in respect of banking facilities granted to joint ventures and associated companies were RMB7,015.6 million (as at December 31, 2025 (restated): RMB7,048.5 million).
Page 42
42 SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD There were no significant events affecting the Company or any of its subsidiaries that took place subsequent to June 30, 2026. CLOSURE OF REGISTER OF MEMBERS The record date for eligible Shareholders to receive the interim dividend is Wednesday, September 16, 2026. In order to determine the right of Shareholders entitled to receive the interim dividend, the register of members of the Company will be closed from Monday, September 14, 2026 to Wednesday, September 16, 2026, both days inclusive, during which period no transfer of shares will be registered. In order to qualify for the interim dividend, Shareholders must lodge all properly completed share transfer forms accompanied by the relevant share certificates for registration with the Company ’s branch share registrar in Hong Kong, Tricor Investor Services Limited, at 17/F., Far East Finance Centre, 16 Harcourt Road, Hong Kong not later than 4:30 p.m. on Friday, September 11, 2026. The interim dividend is expected to be paid on or before Wednesday, September 30, 2026. REVIEW OF THE INTERIM RESULTS BY THE AUDIT COMMITTEE This announcement, including the unaudited consolidated interim results and the accounting principles and practices adopted by the Group, has been reviewed by the audit committee (the “Audit Committee ”) established by the Board in accordance with the Listing Rules. The Audit Committee has also discussed auditing, risk management, internal control and financial statement matters, including the review of the consolidated financial statements of the Group for the Reporting Period. In addition, the interim results for the six months ended June 30, 2026 have not been audited but have been reviewed by Deloitte Touche Tohmatsu, the auditor of the Company, in accordance with International Standard on Review Engagements 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity ” issued by the International Auditing and Assurance Standards Board. PUBLICATION OF INTERIM RESULTS AND INTERIM REPORT ON THE WEBSITES OF THE COMPANY AND THE STOCK EXCHANGE This announcement is published on the respective websites of the Company at www.risun.com and the Stock Exchange at www.hkexnews.hk. The interim report of the Company for the six months ended June 30, 2026 will be despatched to the Shareholders and will also be made available on the above websites in due course and in accordance with the Listing Rules. By order of the Board China Risun Group Limited Yang Xuegang Chairman Hong Kong, August 28, 2026 As at the date of this announcement, the executive Directors are Mr. Yang Xuegang, Ms. Lu Xiaomei, Mr. Li Qinghua, Mr. Han Qinliang, Mr. Wang Nianping and Mr. Yang Lu; and the independent non-executive Directors are Dr. Yu Kwok Kuen Harry, Mr. Wang Yinping and Dr. Liu Xiaofeng. * For identification purposes only