Earnings release
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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 . 遠東 宏 信 有限公司 FAR EAST HORIZON FAR EAST HORIZON LIMITED ( Incorporated in Hong Kong with limited liability ) ( Stock code : 3360 ) INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2026 The board of directors ( the " Board " ) of Far East Horizon Limited ( the " Company " ) hereby announces the unaudited interim results of the Company and its subsidiaries ( the " Group " ) for the six months ended 30 June 2026 , together with the comparative figures for the six months ended 30 June 2025. This announcement , containing the full text of the 2026 interim report of the Company , complies with the relevant requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited in relation to information to accompany preliminary announcement of interim results . By Order of the Board Far East Horizon Limited KONG Fanxing Chairman , Chief Executive Officer and Executive Director Hong Kong , 5 August 2026 As at the date of this announcement , the executive directors of the Company are Mr. KONG Fanxing ( Chairman ) , Mr. WANG Mingzhe and Mr. CAO Jian , the non - executive directors of the Company are Mr. CHEN Shumin , Ms. WEI Mengmeng , Mr. KUO Ming - Jian and Mr. John LAW , and the independent non - executive directors of the Company are Mr. HAN Xiaojing , Mr. LIU Jialin , Mr. YIP Wai Ming and Mr. WONG Ka Fai Jimmy .
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Far East Horizon Limited ·2026 Interim Report Contents 04 06 08 14 121 124115 Other Information ----------------------------------------------------------------------------------- Corporate Governance ------------------------------------------------------------------------------ Disclosure of Interests ------------------------------------------------------------------------------- Management Discussion and Analysis --------------------------------------------------------------- Business Overview ---------------------------------------------------------------------------------- Company Profile ------------------------------------------------------------------------------------- Corporate Information ------------------------------------------------------------------------------
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Integrating global resources and promoting industry development 126 127 128 129 132 134 137 Notes to Interim Condensed Consolidated Financial Information ----------------------------- Interim Condensed Consolidated Statement of Cash Flows ------------------------------------------- Interim Condensed Consolidated Statement of Changes in Equity ------------------------------------ Interim Condensed Consolidated Statement of Financial Position ------------------------------------ Interim Condensed Consolidated Statement of Comprehensive Income ------------------------------ Interim Condensed Consolidated Statement of Profit or Loss ----------------------------------------- Independent Review Report -------------------------------------------------------------------------
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Far East Horizon Limited ·2026 Interim Report CORPORATE INFORMATION BOARD OF DIRECTORS Chairman and Executive Director Mr. KONG Fanxing (Chairman, Chief Executive Officer) Executive Directors Mr. WANG Mingzhe (Chief Financial Officer) Mr. CAO Jian (Senior Vice President) Non-Executive Directors Mr. CHEN Shumin (Vice Chairman) Ms. WEI Mengmeng Mr. LIU Haifeng David (former Non-executive Director, retired with effect from 10 March 2026) Mr. KUO Ming-Jian Mr. John LAW Independent Non-executive Directors Mr. HAN Xiaojing Mr. LIU Jialin (Lead Independent Non-executive Director) Mr. YIP Wai Ming Mr. WONG Ka Fai Jimmy COMPOSITION OF COMMITTEES Audit and Risk Management Committee Mr. YIP Wai Ming (Chairman) Mr. HAN Xiaojing Mr. John LAW Remuneration and Nomination Committee Mr. LIU Jialin (Chairman) Mr. HAN Xiaojing Mr. KUO Ming-Jian Strategy and Investment Committee Mr. LIU Haifeng David (Chairman) (former Non-executive Director, retired with effect from 10 March 2026) Mr. KONG Fanxing Mr. WONG Ka Fai Jimmy Environmental, Social and Governance Committee Mr. WONG Ka Fai Jimmy (Chairman) Mr. HAN Xiaojing Mr. John LAW COMPANY SECRETARY Ms. YUEN Wing Yan Winnie (resigned on 11 March 2026) Ms. Yeung Siu Lam (appointed on 11 March 2026 ) AUTHORISED REPRESENTATIVES Mr. KONG Fanxing Ms. YUEN Wing Yan Winnie (resigned on 11 March 2026) Ms. Yeung Siu Lam (appointed on 11 March 2026 ) REGISTERED OFFICE Units 6706B-6708A, 67/F, International Commerce Centre, 1 Austin Road West, Kowloon, Hong Kong
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Integrating global resources and promoting industry development CORPORATE INFORMATION PRINCIPAL PLACE OF BUSINESS IN THE PRC Far East Horizon Plaza, 9 Yaojiang Road, Pudong New Area, Shanghai, the People ’s Republic of China PRINCIPAL PLACE OF BUSINESS IN HONG KONG Units 6706B-6708A, 67/F, International Commerce Centre, 1 Austin Road West, Kowloon, Hong Kong SHARE REGISTRAR Computershare Hong Kong Investor Services Limited Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen ’s Road East, Wanchai, Hong Kong PRINCIPAL BANKERS China Development Bank Bank of China AUDITORS Ernst & Young (Public Interest Entity Auditor registered in accordance with the Financial Reporting Council Ordinance) (As the auditors for the financial year since 2009) LEGAL ADVISER Baker & McKenzie COMPANY ’S WEBSITE www.fehorizon.com STOCK CODE The Company ’s shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited Stock Code: 3360
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Far East Horizon Limited ·2026 Interim Report COMPANY PROFILE Far East Horizon Limited (the “Company ” or “Far East Horizon ”) and its subsidiaries (the “Group”) is one of China ’s leading innovative financial companies focusing on the Chinese fundamental industries and leveraging the business model of integrating finance and industry to serve enterprises of greatest vitality with the support of the enormous economy in China. Based on its operational philosophy of “finance + industry ”, Far East Horizon endeavours to realize its vision of “Integrating global resources and promoting industry development ” by making innovations in products and services to provide our customers with tailor-made integrated operations services. Over the past more than 10 years, the Group has been leading the development of the industry, and has been listed among the Fortune China 500 and Forbes Global 2000. Over the past two decades, the Group has evolved from a single financial service company into an integrated service provider backed by the mainland and headquartered in Hong Kong with a global footprint so as to facilitate national economic and sustainable social development. With the creative integration of industrial services and financial capital and with unique advantages in the organization of resources and value added services, we provide integrated finance, investment, trade, advisory and engineering services in healthcare, cultural & tourism, engineering construction, machinery, chemical & medicine, electronic information, public consuming, transportation & logistics, urban public utility as well as other fundamental sectors. The Group, headquartered in Hong Kong, China, has business operations centers in Shanghai, Tianjin and Guangzhou, and has offices in more than 20 core cities throughout China, forming a client service network that covers the national market. The Group has been successfully operating its multiple specialized business platforms in China and abroad in financial services, industrial investment, hospital investment and operations, equipment operation services, exquisite education, trade brokerage, management consulting, engineering services, etc. The Company was officially listed on the Main Board of The Stock Exchange of Hong Kong Limited (the “Stock Exchange ”) on 30 March 2011.
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Integrating global resources and promoting industry development OFFICE LAYOUT NATIONWIDE Harbin Shenyang Qingdao Hangzhou Xiamen Nanchang ShenzhenNanning Changsha Zhengzhou Kunming Chengdu Guiyang Chongqing Xi’an Hohhot Jinan Beijing Wuhan Hefei Nanjing Taiyuan Urumqi Tianjin Shanghai Hong Kong Guangzhou
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Far East Horizon Limited ·2026 Interim Report 08 INTERIM REPORT BUSINESS OVERVIEW For the six months ended 30 June 2026 Total revenue (RMB’000) 18,038,807 Diluted earnings per share (RMB) Return on average assets (2) For the six months ended 30 June Return on average equity (3) For the six months ended 30 June 0.47 1.21% 8.47% Net interest margin (4) For the six months ended 30 June Net interest spread (5) For the six months ended 30 June Cost to income ratio (6) For the six months ended 30 June 5.50% 5.04% 44.65% Gearing ratio For the six months ended 30 June 2025 2026 83.65% 83.62% Net assets per share (RMB) For the six months ended 30 June 2025 2026 10.71 10.99 Profit for the period attributable to holders of ordinary shares (RMB’000) 2,221,547 Basic Earnings per Share (RMB) 0.47 For the twelve months ended 31 December For the twelve months ended 31 December For the twelve months ended 31 December For the six months ended 30 June For the six months ended 30 June For the six months ended 30 June 2025 2024 2023 17,336,455 35,785,015 37,749,156 37,959,798 18,038,807 2025 2026 2025 2024 2023 2,163,585 3,888,519 3,862,461 6,192,972 2,221,547 2025 2026 2025 2025 2024 2023 2026 0.51 0.87 0.92 1.47 0.47
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Integrating global resources and promoting industry development 09INTERIM REPORT BUSINESS OVERVIEW For the six months ended 30 June For the year ended 31 December 2026 2025 2025 2024 2023 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Operating results Total revenue 18,038,807 17,336,455 35,785,015 37,749,156 37,959,798 Financial services (interest income) 11,621,542 10,657,250 21,807,366 21,182,108 22,467,103 Advisory services (fee income) 543,150 433,249 868,301 523,546 896,331 Revenue from industrial operation 5,950,619 6,328,829 13,283,870 16,180,581 14,739,271 Tax and surcharges (76,504) (82,873) (174,522) (137,079) (142,907) Cost of sales (8,454,013) (9,686,711) (18,925,110) (20,734,304) (19,958,815) Borrowing costs (3,992,748) (4,711,141) (8,944,616) (9,397,606) (9,982,081) Costs for industrial operation (4,461,265) (4,975,570) (9,980,494) (11,336,698) (9,976,734) Pre-provision operating profit (1) 5,359,490 4,309,827 9,338,164 9,275,587 10,614,851 Profit before tax 4,097,810 4,011,925 8,032,369 8,021,363 10,425,260 Profit for the period/year attributable to holders of ordinary shares of the Company 2,221,547 2,163,585 3,888,519 3,862,461 6,192,972 Basic earnings per share (RMB) 0.47 0.51 0.87 0.92 1.47 Diluted earnings per share (RMB) 0.47 0.47 0.83 0.84 1.33 Profitability indicators Return on average assets (2) 1.21% 1.21% 1.09% 1.27% 1.98% Return on average equity (3) 8.47% 8.66% 7.71% 7.80% 12.99% Net interest margin (4) 5.50% 4.51% 4.83% 4.48% 4.58% Net interest spread (5) 5.04% 4.06% 4.39% 4.00% 3.98% Cost to income ratio (6) 44.65% 50.70% 48.89% 48.98% 45.12%
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Far East Horizon Limited ·2026 Interim Report 10 INTERIM REPORT BUSINESS OVERVIEW 30 June 2026 30 June 2025 31 December 2025 31 December 2024 31 December 2023 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Assets and liabilities Total assets 373,223,828 363,799,616 370,961,369 360,390,000 351,483,236 Net interest-earning assets 282,471,751 266,625,712 272,046,827 260,641,331 269,084,739 Total liabilities 312,106,211 304,321,722 310,667,725 302,912,859 293,913,636 Interest-bearing bank and other borrowings 266,188,806 265,358,970 266,919,667 264,918,183 255,636,145 Gearing ratio 83.62% 83.65% 83.75% 84.05% 83.62% Total equity 61,117,617 59,477,894 60,293,644 57,477,141 57,569,600 Equity attributable to holders of ordinary shares of the Company 52,934,053 50,999,255 51,942,124 48,990,316 50,099,369 Net assets per share (RMB) 10.99 10.71 10.82 11.34 11.61
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Integrating global resources and promoting industry development 11INTERIM REPORT BUSINESS OVERVIEW 30 June 2026 30 June 2025 31 December 2025 31 December 2024 31 December 2023 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Duration matching of assets and liabilities Financial assets 325,240,633 313,176,085 321,470,596 311,067,265 306,682,291 Financial liabilities 305,470,159 297,064,746 302,003,026 297,613,319 285,025,325 Quality of interest-earning assets Non-performing asset ratio (7) 0.99% 1.05% 1.03% 1.07% 1.04% Provision coverage ratio (8) 227.98% 227.33% 227.82% 227.78% 227.59% Write-off of non-performing asset ratio (9) 42.00% 21.24% 50.37% 40.70% 49.41% Write-off of non-performing asset ratio for the traditional financial business (10) 4.33% 9.36% 12.97% 27.69% 48.77% Overdue interest-earning assets (over 30 days) ratio (11) 0.81% 0.90% 0.82% 0.90% 0.91%
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Far East Horizon Limited ·2026 Interim Report 12 INTERIM REPORT BUSINESS OVERVIEW Notes: (1) Pre-provision operating profit = profit before tax + provision for assets; (2) Return on average assets = profit for the year or the period/average balance of assets at the beginning and end of the period, presented on an annualized basis; (3) Return on average equity = profit for the year or the period attributable to holders of ordinary shares of the Company/average balance of equity attributable to holders of ordinary shares of the Company at the beginning and end of the period, presented on an annualized basis; (4) Net interest margin = net interest income/average balance of interest-earning assets, presented on an annualized basis; (5) Net interest spread = average yield of interest-earning assets – average cost rate of interest-bearing liabilities, presented on an annualized basis; (6) Cost to income ratio = selling and administrative expense/gross profit; (7) Non-performing asset ratio = net non-performing assets/net interest-earning assets; (8) Provision coverage ratio = provision for interest-earning assets/net non-performing assets; (9) Write-off of non-performing asset ratio = written-off and disposal of non-performing assets/non-performing assets at the end of the previous period; (10) Write-off of non-performing asset ratio for the traditional financial business = written-off and disposal of non-performing assets of the traditional financial business/ non-performing assets of the traditional financial business at the end of the previous period; (11) Overdue interest-earning assets (over 30 days) ratio = overdue interest-earning assets (over 30 days)/net interest-earning assets; 12 INTERIM REPORT
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Integrating global resources and promoting industry development 13INTERIM REPORT Healthcare Culture & tourism Engineering construction Machinery Chemical & medicine Electronic information Public consuming Urban public utility Transportation & logistics 13INTERIM REPORT
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Far East Horizon Limited ·2026 Interim Report 14 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 1. ECONOMIC ENVIRONMENT 1.1 Macro-economy In the first half of 2026, China ’s gross domestic product (GDP) reached RMB69.57 trillion on a constant price basis, representing a year-on-year increase of 4.7%. By industry, the added value of the primary industry was RMB3.15 trillion, representing a year-on-year increase of 3.7% and a contribution to economic growth of 3.7%; the added value of the secondary industry was RMB25.05 trillion, representing a year-on-year increase of 3.9% and a contribution to economic growth of 30.2%; and the added value of the tertiary industry was RMB41.37 trillion, representing a year-on-year increase of 5.2% and a contribution to economic growth of 66.1%. Taking into consideration the price factor, the GDP deflator recorded a year-on-year increase of 0.7%, of which the primary industry deflator decreased by approximately 2.68% year on year, the secondary industry deflator increased by approximately 1.18% year on year, and the tertiary industry deflator increased by approximately 0.74% year on year. On the demand side, in respect of investment in the first half of 2026, fixed assets investment (excluding rural households) nationwide amounted to RMB22.64 trillion, representing a year-on-year decrease of 5.7%. In particular, private investment in fixed assets recorded a year-on-year decrease of 8.5%. In respect of consumption, the total sales of social consumer goods amounted to RMB24.87 trillion, representing a year-on-year increase of 1.3%. In particular, the sales of urban consumer goods amounted to RMB21.55 trillion; and the sales of rural consumer goods amounted to RMB3.32 trillion. In respect of imports and exports, total imports and exports of goods amounted to RMB25.47 trillion, representing a year-on-year increase of 16.9%. In particular, export of goods amounted to RMB14.73 trillion, representing a year-on-year increase of 13.4%; and import of goods amounted to RMB10.74 trillion, representing a year-on-year increase of 22.1%. The trade surplus was RMB3.99 trillion after offsetting the exports against the imports. On the supply side, the industrial capacity utilization rate was 73.3% in the first half of 2026, representing a year-on-year decrease of 0.7 percentage point. For the three major industries, the mining industry, the manufacturing industry, and the electricity, heat, gas and water production and supply industry reported capacity utilization rates of 69.1%, 73.5% and 70.4%, respectively. Total profits of the industrial enterprises above a designated size amounted to RMB3.95 trillion, representing a year-on-year increase of 18.7%. For the three major industries, total profits from the mining industry, the manufacturing industry, and the electricity, heat, gas and water production and supply industry amounted to RMB574.5 billion, RMB2,971.2 billion and RMB402.2 billion, respectively, representing a year-on-year increase of 33.5%, a year-on-year increase of 20.1% and a year-on-year decrease of 4.2%, respectively.
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Integrating global resources and promoting industry development 15INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS In respect of fiscal policy, in the first half of 2026, the national general public budget expenditure was RMB14.33 trillion, representing a year-on-year increase of 1.5%. The increase was mainly driven by expenditures on healthcare, social security and employment, debt interest payments, science and technology, and education, which grew by 10.8%, 7.6%, 4.5%, 1.3% and 0.6%, respectively. Energy conservation and environmental protection expenditure recorded a year-on-year decrease of 10.3%, and expenditure on agriculture, forestry and water conservancy recorded a year-on-year decrease of 8.6%. The national general public budget revenue was RMB12.11 trillion, representing a year-on-year increase of 4.7%. In particular, tax revenue amounted to RMB9.79 trillion, representing a year-on-year increase of 5.3%. Non-tax revenue amounted to RMB2.32 trillion, representing a year-on-year increase of 2.3%. From the perspective of various industry sectors served by the Group, divergent development trends were observed across sectors. In respect of urban public utility, infrastructure investment generally declined, with a year-on-year decrease of 2.4% in the first half of the year, but investment in new infrastructure such as information transmission and pipeline transportation maintained a high growth rate, increasing by 25.6% and 98.8% year on year, respectively. In respect of engineering construction, real estate construction continued to slow down. Real estate investment, gross floor area (GFA) under construction, and GFA of new construction projects decreased by 18.0%, 12.5% and 23.4% year on year, respectively. In respect of healthcare, healthcare investment remained subdued, with investment in healthcare recording a year-on-year decrease of 9.2%. In respect of culture & tourism, the tourism market continued to pick up. Civil air passenger traffic reached 318 million, representing a year-on-year increase of 2.5%. In respect of transportation & logistics, cargo transportation maintained growth. The national commercial freight volume was 23.12 billion tonnes, representing a year-on-year increase of 3.3%. In respect of public consumption, investment remained stable, with fixed asset investment in textile and apparel recording a year-on-year increase of 9.4%, while fixed asset investment in the agricultural and sideline food processing industry remained flat. The electronics industry saw improved sentiment. Fixed asset investment in computer, communication and other electronic equipment manufacturing increased by 6.5% year on year, while investment in general-purpose equipment manufacturing and electrical machinery manufacturing remained stable, increasing by 1.9% and 1.2% year on year, respectively. Source: National Bureau of Statistics of China, People ’s Bank of China, Ministry of Transport, Ministry of Culture and Tourism, General Administration of Customs, China Association of Automobile Manufacturers, China Construction Machinery Association, National Health Commission of the PRC, Ministry of Commerce, Ministry of Finance 1.2 Financial Environment In the first half of 2026, the broad money supply (M2) increased by 8.0% year on year, while the outstanding social financing increased by 7.4% year on year. Social financing costs remained at a relatively low level, with the 1-year Loan Prime Rate (LPR) and 5-year LPR averaging 3.0% and 3.5%, respectively, remaining flat as compared with the end of 2025. The People ’s Bank of China continued to implement a moderately accommodative monetary policy to maintain ample liquidity. By utilizing a comprehensive mix of quantitative, price-based and structural monetary policy tools to strengthen counter-cyclical and cross-cyclical adjustments, it created a favorable monetary and financial environment for the economy. In January, the People ’s Bank of China lowered the re-lending and rediscount rates by 0.25 percentage point, increased the credit lines of re-lending for supporting agriculture and small businesses by RMB500 billion, and for technological innovation and technological upgrading by RMB400 billion, and lowered the minimum down payment ratio for home purchase loans to 30%. In June, at the Lujiazui Forum, the People ’s Bank of China announced major reform measures, including narrowing the interest rate corridor from 70 basis points to 50 basis points, creating a repo facility for overseas central banks, and studying the establishment of a macro-prudential liquidity support tool for non-bank institutions. Source: People ’s Bank of China
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Far East Horizon Limited ·2026 Interim Report 16 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 1.3 Industry Environment In respect of financial leasing, the industry was characterized by a dual focus on regulation and development. On the one hand, the National Financial Regulatory Administration issued the Measures for the Administration of Financial Leasing Business of Financial Leasing Companies and the Measures for the Supervision and Rating of Financial Leasing Companies, which required financial leasing companies to focus on their core business, tighten risk controls, ensure clear ownership of leased assets, and strengthen the supervision of leaseback funds. On the other hand, several regional authorities, including those in Tianjin, Guangdong, Zhejiang and Shandong, issued supportive and regulatory documents to guide and support equipment leasing and encourage businesses in fields such as chips and aerospace. Despite the regulatory direction becoming clearer, the industry has been navigating a period of adjustment. As of the end of 2025, the balance of financial leasing contracts at the end of the period nationwide amounted to approximately RMB5.38 trillion, representing a decrease of approximately 1.5% from the end of the previous year, with the decline continuing to narrow as compared with 2024. The total number of enterprises continued to fall to approximately 7,020. In respect of equipment leasing, the industry presented a landscape of domestic structural divergence contrasted with broad opportunities overseas. In the domestic market, in the first half of 2026, the construction sector as a whole presented an operational pattern characterized by infrastructure holding up, property staying weak and orders declining; however, the engineering machinery sector witnessed a significant rise in sentiment, benefiting from equipment renewal policies and the push for new energy adoption. The unit volume of aerial work platforms grew steadily and their application scenarios continued to broaden. New support systems saw continuous improvement in penetration rate, driven by policies in water conservancy and underground pipe networks. While the ringlock scaffold market remained on an upward trajectory, sluggish demand and price pressures across the broader industry indicated a further need for market consolidation. In overseas markets, with the in-depth advancement of the Belt and Road initiative, the turnover of China ’s foreign contracted engineering projects grew by 8% year on year in the first half of 2026. With the acceleration of industrialization in Southeast Asia, the continuous implementation of major infrastructure projects in the Middle East, and robust infrastructure demand in emerging markets such as Africa and Central Asia, the penetration rate of new high-performance equipment such as aerial work platforms continued to rise, leaving ample room for market incremental growth. In respect of healthcare, China ’s healthcare industry has currently entered a stage of high-quality development. Driven by an accelerating aging population and rising public health awareness, industry demand has expanded from a “treatment-centered ” approach to full life-cycle health management, with eldercare services, chronic disease management, preventive screening and consumer-driven healthcare emerging as major growth engines. On the policy front, the Healthy China 2030 agenda continued to advance, while reforms to medical insurance reimbursement and the normalization of volume-based procurement have been pushing healthcare service providers to innovate and upgrade, shifting from a focus on “revenue generation ” to “refined operations ”. In addition, the development of smart hospitals accelerated, with AI-assisted diagnosis and telemedicine becoming deeply integrated with offline services to reshape the medical treatment process and service boundaries. The healthcare service industry has been fostering a high-quality development landscape in which “public hospitals secure basic care, private institutions offer differentiated services, and the entire chain drives efficiency gains ”. Source: National Bureau of Statistics of China, People ’s Bank of China, China Construction Machinery Association, National Health Commission of the PRC
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Integrating global resources and promoting industry development 17INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 1.4 Company ’s Solutions Since 2026, the Group has, on the one hand, continued to maintain strategic resolve, staying committed to the vision of “making every effort to shape excellent enterprises ” and the mission of “integrating global resources and promoting industry development ”. On the other hand, centered on the “finance + industry ” strategy, the Group accelerated internal restructuring and continuously upgraded its strategic pathways to stay attuned with the market environment. In terms of financial services, the Group remained committed to serving the real economy and real industries, while reinforcing its financial services across “green, technology, digital, inclusive and pension ” finance. In terms of “serving industrial development ”, the Group expanded upward into integrated services and explored downward towards inclusive finance. In terms of “serving urban development ”, it focused on the development of vibrant regions and cities. In terms of serving industrial development by expanding upward into integrated services, the Company selected industry leaders and regional leading enterprises as target customers. By integrating both internal and external capabilities, the Company not only catered to B2B corporate needs in debt financing, equity financing, supply chain finance and offshore bond issuance, but also addressed B2C individual needs for entrepreneurs. Building upon this B2B-B2C synergy, the Company comprehensively developed an integrated service capability. In terms of serving industrial development by exploring downward towards inclusive finance, the Company focused on the demand of SMEs in China for “short-term, small-ticket, frequent, and urgent ” financing. It developed a differentiated operational capability with Far East characteristics, integrating elements such as marketing management, operations management, pricing management, asset management, and organizational management, thus driving parallel growth in business size and profitability while maintaining stable asset quality. In terms of serving urban development by focusing on vibrant regions, in light of the changing dynamics arising from the restructuring of the urban investment and financing system, the Company continued to focus on economically vibrant regions in China, accelerated the expansion of diversified service models, and organically integrated industrial services with financial service. In the first half of the year, the Company developed four major service matrices, namely asset operations, investment attraction, financial empowerment, and urban investment and transformation, with a total of over 200 integrated service projects in the pipeline. In addition, the Company continued to upgrade its urban information system and completed the launch of its business collaboration system, effectively empowering the exploration of new models. Currently, the Company has developed distinctive characteristics in serving urban development. Industrial operation was centered on Horizon Construction Development and Horizon Healthcare. Horizon Construction Development remained committed to a market-oriented operational approach, consolidating its operational foundation through lean management and focusing on high-value customers as its core operational strategy to drive steady implementation of the “Three + Three + Three ” strategic layout. In the first half of 2026, Horizon Construction Development continued to optimize the operational structure of its domestic operations by implementing refined tiered customer management, deepening ecosystem collaboration with key accounts, and expanding online operations for small and micro customers. It also expanded into new product lines and non-construction sectors to hedge against cyclical fluctuations, and established closed-loop controls across all operational processes to achieve cost reduction and efficiency enhancement. Overseas, it advanced its globalization strategy by targeting regional high-value customers, optimizing its global asset allocation, and increasing investments in high-potential markets such as the Middle East and Southeast Asia to strengthen its localized operational capabilities. Meanwhile, it established service outlets and launched trial operations in Kazakhstan, Morocco and Tanzania. In the first half of 2026, Horizon Construction Development had 544 outlets globally. In particular, it had 467 outlets across 229 cities in mainland China and Hong Kong, China; overseas, it had 77 outlets across 10 countries. In the first half of 2026, although domestic operations faced pressure due to pricing in the domestic construction industry and the leasing market, overseas operations maintained a favorable growth trajectory and remained a key growth driver.
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Far East Horizon Limited ·2026 Interim Report 18 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS As the healthcare industry has undergone profound changes, Horizon Healthcare has been making a strategic breakthrough from medical insurance-driven disease diagnosis and treatment services to healthcare services that care for customers across their full-life cycle. It pursued a higher-level, innovation-led development model, aiming to establish itself in a new market position in the new era and become a one-stop health service provider for local communities. Adhering to a patient-centered approach, Horizon Healthcare accurately identified customers ’ value propositions and reshaped the customer value utility curve to develop its hospitals into new medical institutions characterized by “strong specialty disciplines, comprehensive excellence and one-stop services ”. In addition, it continued to improve labor productivity, reduce procurement, logistics and property management costs, and deeply integrate AI into the entire process of diagnosis, treatment and customer health management to continuously lower operating costs and improve operational efficiency. 2. ANALYSIS OF FINANCIAL RESULTS In the first half of 2026, the Group continued to reinforce its operational foundation and enhance management efficiency. By leveraging its resource integration advantages of “finance + industry ”, the Group achieved steady financial results as a whole. Financial business grew steadily, and the Group ’s consolidated profit increased slightly. In the first half of 2026, the financial and advisory segment achieved revenue of RMB12.165 billion, representing a year-on-year increase of 9.69%. Supported by integrated services and the inclusive finance business, the interest yield of the financial business recorded a structural increase. By adopting a customer strategy of “upward and downward while focusing on vibrant regions ” and adhering to its consistent and prudent risk management policy, the Group recorded a slight decrease in the non-performing asset ratio in financial services, with asset quality remaining stable. Besides, as the private equity fund business progressively entered its exit phase, several investments were listed on the capital market, resulting in an overall increase in fair value and contributing a profit of RMB388 million in the first half of 2026. By virtue of the foregoing, in the first half of 2026, the Group ’s profit for the period attributable to holders of ordinary shares of the Company grew by 2.68% year on year. As of the end of the first half of 2026, the Group ’s asset-liability ratio decreased by 0.13 percentage point, demonstrating continued optimization in financial structure.
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Integrating global resources and promoting industry development 19INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 3. ANALYSIS OF PROFIT AND LOSS 3.1 Analysis of Profit and Loss (Overview) The Group ’s total revenue increased by 4.05% year on year, mainly due to a year-on-year increase of 9.69% in revenue from financial services. Gross profit, pre-provision operating profit and profit before tax all moved higher, mainly attributable to the impact of fluctuations in the industrial operation segment offset by the growth in financial services. Profit for the period attributable to holders of ordinary shares was RMB2,221,547,000, representing an increase of 2.68% as compared with the corresponding period of the previous year. The following table sets forth the comparative figures against the corresponding period of 2025. For the six months ended 30 June 2026 2025 RMB’000 RMB’000 Change % Revenue 18,038,807 17,336,455 4.05% Cost of sales (8,454,013) (9,686,711) -12.73% Gross profit 9,584,794 7,649,744 25.30% Other income/gains (1) 681,778 999,844 -31.81% Selling and administrative expenses (4,279,854) (3,878,758) 10.34% Other expenses and losses (1) (68,556) (45,340) 51.20% Finance costs (468,162) (588,066) -20.39% Gains and losses on investment in joint ventures/associates (90,510) 172,403 -152.50% Pre-provision operating profit 5,359,490 4,309,827 24.36% Provision for assets (1,261,680) (297,902) 323.52% Profit before tax 4,097,810 4,011,925 2.14% Income tax expense (1,837,394) (1,823,497) 0.76% Profit for the period 2,260,416 2,188,428 3.29% Attributable to: Holders of ordinary shares of the Company 2,221,547 2,163,585 2.68% Non-controlling interests 38,869 24,843 56.46%
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Far East Horizon Limited ·2026 Interim Report 20 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS Notes: (1) There is a difference in terms of reporting basis between the amount of other income/gains as well as other expenses and losses and the consolidated statement of profit or loss in the financial report. The gain or loss on change in fair value of interest-earning financial assets here is included in provision for assets; the gain or loss on change in fair value of non-interest-earning financial assets and financial liabilities here is included in “other income/gains ” (net gain) or in “other expenses and losses ” (net loss) on a net basis. In the consolidated statement of profit or loss, the gain on change in fair value of financial assets and financial liabilities is included in “other income and gains ”, and the loss on changes in fair value is included in “other expenses ”. In the first half of 2026, the Group recorded a slight increase in consolidated revenue. By virtue of improved operational efficiency, enhanced asset value, and the recovery and disposal of non-performing assets, profit before tax remained generally stable, and the net profit attributable to holders of ordinary shares showed year-on-year improvement. The specific changes in profit and loss are explained as follows: (i) Revenue and gross profit both experienced a year-on-year increase. Revenue and gross profit are primarily derived from two major segments, i.e. financial services and industrial operation. In particular, the revenue and gross profit of financial services increased by 9.69% and 28.10% year on year, respectively, while the revenue of industrial operation decreased by 5.98% and its gross profit increased by 10.06%. Due to the growth in the performance of financial service, the overall revenue and gross profit of the Group increased by 4.05% and 25.30%, respectively. (ii) Other income/gains: Other income/gains of the Group, comprising government grants and investment income from equity/debt items, amounted to RMB681,778,000 in the first half of 2026, representing a decrease of 31.81% from RMB999,844,000 in the corresponding period of the previous year. In particular, investment income from private equity-related financial investments increased by RMB148,685,000 year on year. However, due to fluctuations in the fair value of infrastructure investment projects and the expiration of all off-balance-sheet assets, which resulted in a decline in gains from the corresponding holdings of such assets, this line item generally decreased. For a detailed analysis, please refer to item 3.5 of this section. (iii) Gains and losses on investment in joint ventures/associates: Joint ventures/associates represent the Group ’s equity interests in investees where the Group exercises significant influence but does not have control over their business decisions. Gains and losses on investment are primarily calculated based on the profits of the investees and the shareholding of the Group in these investees. In the first half of 2026, losses on investment in joint ventures/associates amounted to RMB90,510,000, representing a decrease from the gain on investment of RMB172,403,000 in the corresponding period of the previous year, mainly attributable to the decline in business performance of the investees.
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Integrating global resources and promoting industry development 21INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS (iv) Provision for assets: The Group makes provision for both financial services and industrial operation, and adopts a consistent and prudent approach in making provision for assets. For financial services, provision and reversal of bad debts after write-off for the traditional financial business amounted to RMB48,809,000 and RMB53,448,000, respectively. As reversal of bad debts after write-off represents a deduction of provision, this resulted in an overall reversal of provision for the traditional financial business of RMB4,639,000 for the period, representing a decrease of RMB130,424,000 year on year. To prevent the accumulation or deferral of bad debts in the financial operations of the inclusive finance business, starting from 2025, the Group adopted a more prudent write-off policy that is better aligned with current business development to write off projects upon 30+ days overdue, resulting in write-off losses of RMB1,051,030,000, representing an increase of RMB719,666,000 year on year. In addition, reversal of bad debts after write-off for the inclusive finance business amounted to RMB193,511,000, representing an increase of RMB166,598,000 year on year. Furthermore, as the business model of the inclusive finance business was maturing, the balance of pass and special mention assets grew steadily, with corresponding provision of RMB70,690,000, representing a decrease of RMB20,045,000 year on year. In conclusion, provisions and losses for interest-earning assets in the financial services totaled RMB923,570,000, representing an increase of RMB663,447,000 year on year. In respect of industrial operation, the provision incurred by operating entities such as Horizon Healthcare and Horizon Construction Development amounted to RMB338,110,000, representing an increase of RMB300,331,000 year on year, primarily due to the Group ’s impairment of goodwill of RMB194,733,000 for certain underperforming hospitals. As of 30 June 2026, the goodwill balance of the Group ’s healthcare segment was nil. The goodwill balance of the Group ’s other segments was RMB187,256,000, of which goodwill of RMB173,979,000 arose from Horizon Construction Development ’s acquisition of TH Tong Heng Machinery Sdn. Bhd. in 2025. (v) Taking into account the above factors, the profit before tax of the Group for the first half of 2026 increased slightly by 2.14% year on year. (vi) In the first half of 2026, the effective tax rate of the Group ’s business entities remained generally stable as compared with the corresponding period of 2025. The consolidated effective tax rate decreased from 45.5% in the first half of 2025 to 44.8% in the first half of 2026. For a detailed analysis, please refer to item 3.11 of this section. Due to the steady growth of the Group ’s financial business, the profit before tax of the Group for the first half of 2026 amounted to RMB4,097,810,000, representing a year-on-year increase of 2.14%. Profit for the period amounted to RMB2,260,416,000, representing a year-on-year increase of 3.29%. Profit for the period attributable to holders of ordinary shares amounted to RMB2,221,547,000, representing a year-on-year increase of 2.68%.
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Far East Horizon Limited ·2026 Interim Report 22 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 3.2 Revenue In the first half of 2026, the Group realized revenue of RMB18,038,807,000, representing a slight increase from RMB17,336,455,000 in the corresponding period of the previous year. In particular, revenue (before taxes and surcharges) from the financial and advisory segment was RMB12,164,692,000, accounting for 67.15% of the total revenue (before taxes and surcharges) and representing an increase of 9.69% as compared with the corresponding period of the previous year. Revenue from the industrial operation segment (before taxes and surcharges) was RMB5,950,619,000, accounting for 32.85% of the total revenue (before taxes and surcharges), representing a decrease of 5.98% as compared with the corresponding period of the previous year. The table below sets forth the composition and the change of the Group ’s revenue by business segment for the periods indicated. For the six months ended 30 June 2026 2025 RMB’000 % of total RMB’000 % of total Change % Financial and advisory segment 12,164,692 67.15% 11,090,499 63.67% 9.69% Financial services (interest income) 11,621,542 64.15% 10,657,250 61.18% 9.05% Advisory services (fee income) 543,150 3.00% 433,249 2.49% 25.37% Industrial operation segment 5,950,619 32.85% 6,328,829 36.33% -5.98% Revenue from equipment operation 4,024,060 22.21% 4,350,062 24.97% -7.49% Revenue from healthcare operation 1,692,800 9.34% 1,810,060 10.39% -6.48% Others 233,759 1.29% 168,707 0.97% 38.56% Total 18,115,311 100.00% 17,419,328 100.00% 4.00% Taxes and surcharges (76,504) (82,873) -7.69% Revenue (after taxes and surcharges) 18,038,807 17,336,455 4.05% In the first half of 2026, the Group realized revenue of RMB18,038,807,000, representing a slight increase from RMB17,336,455,000 in the corresponding period of the previous year. Facing the ever-changing environment, the Group placed a greater emphasis on the quality of operations, insisting on taking safe and stable operations as its top priority and prudently pushing ahead with various operational initiatives. In particular, the financial services, driven by a new strategic focus and a targeted client approach, achieved growth in interest-earning assets while maintaining a balance between returns and risks, resulting in a year-on-year increase of 9.69% in revenue. Due to changes in the market environment and intensified competition, the contribution from the industrial operation segment decreased for the period.
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Integrating global resources and promoting industry development 23INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS Revenue (before taxes and surcharges) from the financial and advisory segment was RMB12.165 billion, accounting for 67.15% of the total revenue (before taxes and surcharges). In particular, interest income contribution from the inclusive finance business amounted to RMB2.710 billion (first half of 2025: RMB1.451 billion), accounting for 15.02% of the total revenue (first half of 2025: 8.34%). For details, please refer to the discussion and analysis in item 15 of this section. For revenue from the industrial operation segment, the industrial operation segment, comprising Horizon Construction Development and Horizon Healthcare, realized a total revenue of RMB5.951 billion, representing a decrease of 5.98% as compared with the corresponding period of the previous year. In particular, Horizon Construction Development realized a revenue of RMB4.024 billion, representing a decrease of 7.49% as compared with the corresponding period of the previous year; Horizon Healthcare realized a revenue of RMB1.693 billion, representing a decrease of 6.48% as compared with the corresponding period of the previous year. 3.2.1 Financial Services (Interest Income) The interest income (before taxes and surcharges) from the financial and advisory segment of the Group increased by 9.05% from RMB10,657,250,000 for the first half of 2025 to RMB11,621,542,000 for the first half of 2026, accounting for 64.15% of the Group ’s total revenue (before taxes and surcharges). The table below sets forth the average balance of interest-earning assets, interest income and average yield for the periods indicated. For the six months ended 30 June 2026 2025 Average balance (1) Interest income (2) Average yield (3) Average balance (1) Interest income (2) Average yield (3) RMB’000 RMB’000 % RMB’000 RMB’000 % Interest-earning assets 277,259,289 11,621,542 8.38% 263,633,522 10,657,250 8.08% Notes: (1) Calculated based on the average balance of interest-earning assets at the beginning and end of the periods indicated. (2) Interest income represents the revenue before taxes and surcharges. (3) Average yield represents the quotient of interest income divided by the average balance of interest-earning assets, presented on an annualized basis. (4) Interest-earning assets include net financial leasing receivable, entrusted loans, mortgage loans, long-term receivables, factoring receivables and respective interest accrued but not received.
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Far East Horizon Limited ·2026 Interim Report 24 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS Analysis according to average balance of interest-earning assets In the first half of 2026, the average balance of interest-earning assets of the Group was RMB277,259,289,000, which maintained a stable increase as compared to RMB263,633,522,000 in the first half of 2025. In particular, the inclusive finance business achieved steady growth, and its average balance of interest-earning assets increased from RMB19,720 million in the first half of 2025 to RMB31,907 million in the first half of 2026, representing an increase of 61.80%. Analysis according to average yield In the first half of 2026, the average yield of the Group was 8.38%, representing a slight increase from 8.08% as compared to the corresponding period of the previous year, which was due to the combination of the following: (i) Traditional finance business ’ comprehensive services promoted customer stickiness and income stability: in response to a complex business environment, the Group strategically opted for safer and more reliable whitelisted customers and customers from economically vibrant regions. As a result, client tiers and asset quality improved, achieving business growth, while the yield experienced a slight decline, leading to a decrease in the overall average yield of interest-earning assets of the Group by 0.25%. (ii) Inclusive finance business generated higher marginal yields: characterized by a focus on lower-tier markets, risk diversification and rapid asset turnover, this segment exhibited a higher asset yield than traditional finance business in general. As inclusive finance ’s business model matured and its share of the portfolio further increased, its contribution to driving the Group ’s overall financial services became increasingly evident, leading to an increase in the overall average yield of interest- earning assets by 0.55%. The table below sets forth the breakdown of interest income (before taxes and surcharges) by region for the periods indicated. For the six months ended 30 June 2026 2025 RMB’000 % of total RMB’000 % of total Northeast China 287,904 2.48% 302,045 2.83% Northern China 1,196,611 10.30% 1,145,842 10.75% Eastern China 5,806,484 49.96% 5,147,142 48.30% Southern China 899,048 7.74% 622,558 5.84% Central China 1,809,059 15.57% 1,762,626 16.54% Northwest China 525,260 4.52% 634,114 5.95% Southwest China 1,097,176 9.43% 1,042,923 9.79% Total 11,621,542 100.00% 10,657,250 100.00%
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Integrating global resources and promoting industry development 25INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 3.2.2 Revenue from the Industrial Operation Segment Revenue from the industrial operation segment (before taxes and surcharges) of the Group decreased by RMB378,210,000 from RMB6,328,829,000 for the first half of 2025 to RMB5,950,619,000 for the first half of 2026, accounting for 32.85% of the total revenue of the Group (before taxes and surcharges). The table below sets forth the Group ’s revenue from the industrial operation segment (before taxes and surcharges) by business segment for the periods indicated. For the six months ended 30 June 2026 2025 RMB’000 % of total RMB’000 % of total Change % Revenue from the industrial operation segment 5,950,619 100.00% 6,328,829 100.00% -5.98% Of which: Revenue from equipment operation (1) 4,024,060 67.62% 4,350,062 68.73% -7.49% Revenue from hospital operation (2) 1,692,800 28.45% 1,810,060 28.60% -6.48% Notes: (1) For details of the revenue from equipment operation, please refer to the discussion and analysis in item 13 of this section; (2) For details of the revenue from hospital operation, please refer to the discussion and analysis in item 14 of this section.
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Far East Horizon Limited ·2026 Interim Report 26 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 3.3 Cost of Sales In the first half of 2026, the cost of sales of the Group decreased by 12.73% from RMB9,686,711,000 in the corresponding period of the previous year to RMB8,454,013,000, of which the cost of the financial and advisory segment was RMB3,992,748,000, accounting for 47.23% of the total costs and representing a decrease of 15.25% from RMB4,711,141,000 in the corresponding period of the previous year. The cost of the industrial operation segment was RMB4,461,265,000, accounting for 52.77% of the total costs and representing a decrease of 10.34% from RMB4,975,570,000 in the corresponding period of the previous year. The table below sets forth the composition and the change of the Group ’s cost of sales by business segment for the periods indicated. For the six months ended 30 June 2026 2025 RMB’000 % of total RMB’000 % of total Change % Cost of the finance and advisory segment 3,992,748 47.23% 4,711,141 48.64% -15.25% Cost of the industrial operation segment 4,461,265 52.77% 4,975,570 51.36% -10.34% Cost of equipment operation 2,903,598 34.35% 3,409,395 35.20% -14.84% Cost of hospital operation 1,399,820 16.56% 1,469,490 15.17% -4.74% Others 157,847 1.87% 96,685 1.00% 63.26% Cost of sales 8,454,013 100.00% 9,686,711 100.00% -12.73%
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Integrating global resources and promoting industry development 27INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 3.3.1 Cost of the Finance and Advisory Segment The cost of sales of the financial and advisory segment of the Group comprised solely the relevant interest expenses of the interest-bearing bank borrowings and other borrowings of the Group. The following table sets forth the average balance of the interest-bearing liabilities of the Group, the interest expense of the Group and the average cost rate of the Group for the periods indicated. For the six months ended 30 June 2026 2025 Average balance (1) Interest expense Average cost rate (2) Average balance (1) Interest expense Average cost rate (2) RMB’000 RMB’000 % RMB’000 RMB’000 % Interest-bearing liabilities 238,748,633 3,992,748 3.34% 234,121,864 4,711,141 4.02% Notes: (1) Calculated as the average balance of the interest-bearing liabilities at the beginning and end of the period. (2) Calculated by dividing interest expense by the average balance of interest-bearing liabilities, presented on an annualized basis. The cost of sales of the financial and advisory segment decreased by RMB718,393,000 from RMB4,711,141,000 for the first half of 2025 to RMB3,992,748,000 for the first half of 2026. The average cost rate of the Group decreased significantly to 3.34% for the first half of 2026 as compared to that for the first half of 2025, mainly due to: (i) the continuation of a moderately accommodative stance in the domestic monetary policy in the first half of 2026: leveraging its long-term deep cooperative foundation with banks, the Company actively sought to lower drawdown interest rates, resulting in a continuation of the downward trend in 2025 and a further significant decrease in domestic bank financing costs. New drawdowns from domestic banks led to a decrease of 0.151% in the average cost rate as compared to the first half of 2025; (ii) the reduction in the cost of outstanding liabilities: certain high-cost liabilities previously incurred matured in batches in the first half of 2026, leading to a decrease of 0.428% in the average cost rate as compared to the first half of 2025; (iii) generally favorable conditions with periodic fluctuations in the bond market in the first half of 2026: the Company seized market windows to optimize its issuance arrangement and broaden various investor outreaches. It successively completed the issuance of various products such as corporate bonds, medium-term notes, super short-term financial bonds and asset-backed securities with repeated record-low issuance rates, which reduced the average cost rate by 0.091% as compared to the first half of 2025; (iv) active communication with foreign banks: new drawdowns from overseas banks resulted in a decrease of 0.006% in the average cost rate as compared to the first half of 2025.
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Far East Horizon Limited ·2026 Interim Report 28 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 3.3.2 Cost of the Industrial Operation Segment The cost of sales of the industrial operation segment of the Group was primarily derived from the cost of equipment operation and the cost of hospital operation, etc. The following table sets forth the cost of the industrial operation segment of the Group by business type for the periods indicated. For the six months ended 30 June 2026 2025 RMB’000 % of total RMB’000 % of total Change % Cost of the industrial operation segment 4,461,265 100.00% 4,975,570 100.00% -10.34% Of which: Cost of equipment operation (1) 2,903,598 65.08% 3,409,395 68.52% -14.84% Cost of hospital operation (2) 1,399,820 31.38% 1,469,490 29.53% -4.74% Notes: (1) For details of the cost of equipment operation, please refer to the discussion and analysis in item 13 of this section; (2) For details of the cost of hospital operation, please refer to the discussion and analysis in item 14 of this section.
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Integrating global resources and promoting industry development 29INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 3.4 Gross Profit The gross profit of the Group for the first half of 2026 increased by RMB1,935,050,000 or 25.30% to RMB9,584,794,000 from RMB7,649,744,000 in the corresponding period of the previous year. For the first half of 2026 and the first half of 2025, the gross profit margin of the Group was 53.13% and 44.13%, respectively. 3.4.1 Gross Profit of the Financial and Advisory Segment The gross profit margin of the financial and advisory segment was affected by the changes in net interest income and net interest margin. The following table sets forth the interest income, interest expense, net interest income, net interest spread and net interest margin of the Group for the periods indicated. For the six months ended 30 June 2026 2025 RMB’000 RMB’000 Change % Interest income (1) 11,621,542 10,657,250 9.05% Interest expense (2) 3,992,748 4,711,141 -15.25% Net interest income 7,628,794 5,946,109 28.30% Average yield of interest-earning assets 8.38% 8.08% 0.30% Average cost rate of interest-bearing liabilities 3.34% 4.02% -0.68% Net interest spread (3) 5.04% 4.06% 0.98% Net interest margin (4) 5.50% 4.51% 0.99% Notes: (1) Interest income refers to the interest income of the financial services of the Group. (2) Interest expense refers to the borrowing cost of the financial services of the Group. (3) Calculated as the difference between the average yield and the average cost rate. The average yield is calculated by dividing interest income by the average balance of interest-earning assets, presented on an annualized basis. The average cost rate is calculated by dividing interest expense by the average balance of the interest-bearing liabilities, presented on an annualized basis. (4) Calculated by dividing net interest income by the average balance of interest-earning assets, presented on an annualized basis.
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Far East Horizon Limited ·2026 Interim Report 30 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS Net interest spread of the Group for the first half of 2026 increased by 98 basis points to 5.04% as compared with the corresponding period of the previous year, which was mainly due to an increase in the average yield of interest-earning assets coupled with a decline in the average cost rate of interest-bearing liabilities. This demonstrates the simultaneous improvement of operational capabilities of the Group in both assets and liabilities. In the first half of 2026, under the Group ’s strategy of prudent operation and risk control, the net interest income of financial services increased by 28.30%, while the average balance of interest-earning assets grew steadily, and thus the net interest margin improved significantly. 3.4.2 Gross Profit of the Industrial Operation Segment For the six months ended 30 June 2026 2025 RMB’000 % of total RMB’000 % of total Change % Gross profit of the industrial operation segment 1,489,354 100.00% 1,353,259 100.00% 10.06% Of which: Gross profit of equipment operation (1) 1,120,462 75.23% 940,667 69.51% 19.11% Gross profit margin of equipment operation 27.84% 21.62% 6.22% Gross profit of hospital operation (2) 292,980 19.67% 340,570 25.17% -13.97% Gross profit margin of hospital operation 17.31% 18.82% -1.51% Notes: (1) For details of gross profit of equipment operation, please refer to the discussion and analysis in item 13 of this section; (2) For details of gross profit of hospital operation, please refer to the discussion and analysis in item 14 of this section.
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Integrating global resources and promoting industry development 31INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 3.5 Other Income/Gains The following table sets forth a breakdown of other income/gains of the Group for the periods indicated: For the six months ended 30 June 2026 2025 RMB’000 RMB’000 Change % Equity and debt investment income (1) 438,094 555,748 -21.17% Of which: financial investments related to private equity funds 388,634 239,949 61.97% Government grants (2) 118,527 122,628 -3.34% Bank interest income 50,822 96,574 -47.38% Gains from structured financial products 98 18,978 -99.48% Income from the holdings of off-balance-sheet assets (3) – 42,321 -100.00% Other income (4) 74,237 163,595 -54.62% Total 681,778 999,844 -31.81% Notes: (1) The Group ’s equity and debt investment income was mainly gain on change in fair value of and transfer of equity and debt investment. In particular, the gain from the change in fair value of infrastructure investment projects amounted to RMB140 million (first half of 2025: RMB190 million). (2) The Group ’s government grants for the period mainly consisted of business operation incentives for Horizon Construction Development of approximately RMB80 million. (3) For the holdings of off-balance-sheet assets of the Group, the income of the year was recognized according to the expected yield and expected loss rate of such holdings. Since the end of 2025, the Group has had no outstanding off-balance-sheet assets. (4) The Group ’s other income for the period mainly consisted of gains from the disposal of subsidiaries of RMB30 million and gains from the disposal of fixed assets of RMB10 million.
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Far East Horizon Limited ·2026 Interim Report 32 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 3.6 Selling and Administrative Expenses Selling and administrative expenses of the Group for the first half of 2026 were RMB4,279,854,000, representing an increase of RMB401,096,000 or 10.34% from the corresponding period of the previous year, indicating an overall increase. Selling and administrative expenses in relation to financial services recorded a year-on-year increase of RMB446,592,000, mainly due to the increase in labor and travelling costs as the Group put greater efforts into market expansion. Selling and administrative expenses in relation to industrial operation recorded a year-on-year decrease of RMB45,496,000, mainly due to the decrease of RMB53,560,000 in the healthcare operation segment. The cost to income ratio of the Group for the first half of 2026 decreased to 44.65%, representing a decrease from 50.70% for the corresponding period of the previous year. The cost to income ratio of financial services was 41.07%, representing a decrease from 41.62% for the corresponding period of the previous year, mainly due to the increase in gross profit and a significant improvement in operating efficiency. The cost to income ratio of industrial operation decreased, mainly due to cost reduction and efficiency increase in the equipment and healthcare segments, decreasing the cost to income ratio to 65.34% for the period from 80.62% in the first half of 2025. 3.7 Other Expenses and Losses Other expenses and losses of the Group for the first half of 2026 amounted to RMB68,556,000, representing an increase of 51.20% as compared to RMB45,340,000 in the corresponding period of the previous year, which was mainly due to the increase in foreign exchange losses. 3.8 Finance Costs Finance costs of the Group for the first half of 2026 amounted to RMB468,162,000, representing a decrease of 20.39% as compared to RMB588,066,000 in the corresponding period of the previous year. The finance costs were mainly financing- related costs for the Group ’s industrial operation segment and infrastructure investment projects. 3.9 Pre-provision Operating Profit Pre-provision operating profit of the Group for the first half of 2026 amounted to RMB5,359,490,000, representing an increase of RMB1,049,663,000 or 24.36% as compared with the corresponding period of the previous year. The pre-provision operating profit of the industrial operation segment increased. In particular, the domestic business of Horizon Construction Development focused on stability while accelerating its expansion into overseas markets, and its pre-provision operating profit amounted to RMB116,923,000, representing an increase of RMB249,443,000 as compared to the corresponding period of the previous year. The Group will continue to proactively adopt prudent and stable development strategies. It is expected that with the gradual stabilization of the external market environment, the gradual expansion of the size of industrial operation, and the improvement in internal operating efficiency in the future, the pre-provision operating profit of the Group will maintain steady growth.
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Integrating global resources and promoting industry development 33INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 3.10 Provision for Assets The following table sets forth a breakdown of the provision for assets of the Group for the periods indicated: For the six months ended 30 June 2026 2025 RMB’000 % of total RMB’000 % of total Change % Provision for interest-earning assets of the traditional business (1) 48,809 3.88% 160,333 53.82% -69.56% Reversal of interest-earning assets after write-off for the traditional business (1) (53,448) -4.24% (295,396) -99.16% -81.91% Write-off losses on interest-earning assets of the inclusive business (1) 1,051,030 83.30% 331,364 111.23% 217.18% Reversal of interest-earning assets after write-off for the inclusive business (1) (193,511) -15.34% (26,913) -9.03% 619.02% Other provisions for interest-earning assets of the inclusive business (1) 70,690 5.60% 90,735 30.46% -22.09% Provision for accounts receivable (2) 74,879 5.93% (92,915) -31.19% N/A Provision for other receivables (2) 83,899 3.48% (31,055) -10.42% N/A Provision for fixed assets (5,504) -0.44% – – N/A Provision for investment in joint ventures/associates 61,461 4.87% 179,065 60.11% -65.68% Provision for goodwill (3) 194,738 15.43% – – N/A Provision for credit commitments (4) (13,095) -1.04% (35,069) -11.77% -62.66% Other provisions (58,268) -1.43% 17,753 5.96% N/A Total 1,261,680 100.00% 297,902 100.00% 323.52%
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Far East Horizon Limited ·2026 Interim Report 34 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS Notes: (1) In view of the stable sizes of interest-earning assets and non-performing assets, the Group continued to adopt a prudent approach in making provision for assets during the first half of 2026. For financial services, provision and reversal of bad debts after write-off for the traditional financial business amounted to RMB48,809,000 and RMB53,448,000, respectively. As reversal of bad debts after write-off represented the deduction of provision, this resulted in an overall reversal of provision for the traditional financial business of RMB4,639,000, representing a decrease of RMB130,424,000 as compared with the previous year. To prevent the accumulation or deferral of bad debts in the financial operations of the inclusive finance business, the Group adopted a more prudent write-off policy that was better aligned with current business development to write off projects upon 30+ days overdue, resulting in write-off losses of RMB1,051,030,000, representing an increase of RMB719,666,000 as compared with the previous year. In addition, reversal of bad debts after write-off for the inclusive finance business amounted to RMB193,511,000, representing an increase of RMB166,598,000 as compared with the corresponding period of the previous year. Furthermore, as the business model of the inclusive finance business was maturing, the balance of pass and special mention assets grew steadily, with corresponding provision of RMB70,690,000, representing a decrease of RMB20,045,000 as compared with the previous year. (2) Provision for accounts receivable and other receivables is mainly the expected credit loss of the relevant receivables made by the Group for equipment operation and hospital operation. In particular, the equipment operation segment began implementing a customer classification management system during 2025, which supplemented and optimized the blacklisted customer management system accordingly. During the corresponding period of the previous year, certain customers with normal payment collection within one year, better qualifications and classified as high grade were removed from the blacklist to better maintain customer relationships and conduct normal business cooperation, resulting in a reversal of provision during the corresponding period of the previous year. (3) Provision for goodwill is mainly the Group ’s goodwill impairment provision of RMB195 million for certain subsidiaries with lower-than-expected profits in the hospital operation segment. As of 30 June 2026, the balance of goodwill for the Group ’s healthcare segment amounted to zero. The balance of goodwill for the Group ’s remaining segments amounted to RMB187,256,000, of which the goodwill generated from the acquisition of TH Tong Heng Machinery Sdn. Bhd. by Horizon Construction Development amounted to RMB173,979,000. (4) Provision for credit commitments is mainly the expected credit loss of the Group ’s interest-earning assets that have been contracted but not yet disbursed. 3.11 Income Tax Expense Income tax expense of the Group for the first half of 2026 was RMB1,837,394,000, representing an increase of RMB13,897,000 or 0.76% from the corresponding period of the previous year. The effective income tax rate of the Group for the first half of 2026 decreased to 44.8% from the corresponding period of the previous year. The following table sets forth a breakdown of the income tax rate of the Group for the periods indicated: For the six months ended 30 June 2026 2025 Change % Domestic statutory tax rate 25.0% 25.0% – Cross-border business withholding tax (1) 4.0% 4.4% -0.4% Tax losses of certain operating entities within the Group 11.9% 14.2% -2.3% Others 3.9% 1.9% 2.0% Total 44.8% 45.5% -0.7% Note: (1) Cross-border business withholding tax is mainly the relevant withholding income tax burden arising from dividend distribution to overseas companies by domestic companies of the Group based on regulatory requirements and the Group ’s overseas capital needs.
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Integrating global resources and promoting industry development 35INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 3.12 Profit for the Period Attributable to Holders of Ordinary Shares of the Company Based on the above discussion and analysis, profit for the period attributable to holders of ordinary shares of the Company was RMB2,221,547,000, which increased by RMB57,962,000 or 2.68% from the corresponding period of the previous year. 3.13 Basic Earnings per Share Basic earnings per share for the current period amounted to RMB0.47, representing a decrease of RMB0.04 or 8.12% from the corresponding period of the previous year. For the six months ended 30 June 2026 2025 Change % Profit for the period attributable to holders of ordinary shares of the Company (RMB ’000) 2,221,547 2,163,585 2.68% Weighted average number of ordinary shares outstanding during the period (share) 4,737,217,820 4,239,083,563 11.75% Basic earnings per share (RMB) 0.47 0.51 -8.12% As of 30 June 2026, the outstanding portion of the convertible bonds issued by the Group in July 2020 and June 2021 was converted. As a result of the conversion of convertible bonds to 430 million shares in the corresponding period of the previous year, the weighted average number of ordinary shares of the Company during the first half of 2026 increased by 11.75% from the corresponding period of the previous year. Therefore, despite the profit for the period attributable to holders of ordinary shares of the Company increasing by 2.68% for the period as compared with the corresponding period of the previous year, the basic earnings per share decreased by 8.12% as compared to the corresponding period of the previous year, while the diluted earnings per share remained the same as the corresponding period of the previous year. It is expected that the Group will maintain the safe and steady development of the traditional financial business in the future and achieve robust growth in the inclusive finance business and industrial operation by following economic development trends and enriching its services, which will lead to a steady increase in the Group ’s return on average equity. 4. ANALYSIS OF FINANCIAL POSITION 4.1 Assets (Overview) As at 30 June 2026, the total assets of the Group increased by RMB2,262,459,000 or 0.61% from the end of the previous year to RMB373,223,828,000. Net interest-earning assets increased by RMB10,424,924,000 or 3.83% from the end of the previous year to RMB282,471,751,000.
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Far East Horizon Limited ·2026 Interim Report 36 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS The following table sets forth the analysis of the assets as of the dates indicated. 30 June 2026 31 December 2025 RMB’000 % of total RMB’000 % of total Change % Loans and accounts receivable 283,846,142 76.04% 273,519,543 73.73% 3.78% Of which: interest-earning assets 275,199,256 73.74% 264,313,474 71.25% 4.12% Cash and cash equivalents 16,225,208 4.35% 21,375,169 5.76% -24.09% Restricted deposits 10,495,490 2.81% 10,439,383 2.81% 0.54% Prepayment and other accounts receivable 3,873,952 1.04% 4,191,536 1.13% -7.58% Deferred income tax assets 6,664,112 1.79% 6,232,591 1.68% 6.92% Property, plant and equipment 24,773,897 6.64% 25,596,257 6.90% -3.21% Investment in joint ventures/associates 9,556,480 2.56% 10,178,764 2.74% -6.11% Financial assets at fair value through profit or loss 13,715,889 3.67% 14,193,789 3.83% -3.37% Of which: interest-earning assets 917,609 0.25% 1,377,671 0.37% -33.39% Financial assets at fair value through other comprehensive income 370,534 0.10% 260,855 0.07% 42.05% Derivative financial instruments 82,100 0.02% 320,608 0.09% -74.39% Inventories 569,883 0.15% 597,726 0.16% -4.66% Contract assets 580,255 0.16% 660,263 0.18% -12.12% Goodwill 187,256 0.05% 368,716 0.10% -49.21% Right-of-use assets 2,157,969 0.58% 2,300,196 0.62% -6.18% Investment property – – 9,829 0.00% -100.00% Other assets 124,661 0.04% 716,144 0.20% -82.59% Total assets 373,223,828 100.00% 370,961,369 100.00% 0.61%
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Integrating global resources and promoting industry development 37INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS The following table sets forth the analysis of the assets by business nature as of the dates indicated. 30 June 2026 31 December 2025 RMB’000 % of total RMB’000 % of total Change % 1) Financial services Interest-earning assets 276,116,865 73.98% 265,691,145 71.62% 3.92% Of which: inclusive finance 35,109,650 9.41% 27,725,183 7.47% 26.63% 2) Industrial operation Equipment operation segment 35,802,004 9.59% 36,368,347 9.80% -1.56% Hospital operation segment 5,705,565 1.53% 6,159,430 1.66% -7.37% 3) Other public assets of the Group (excluding industrial operation) Cash and cash equivalents 14,621,055 3.92% 19,673,317 5.30% -25.68% Restricted deposits 10,243,819 2.74% 10,333,142 2.79% -0.86% Infrastructure investment projects 7,221,990 1.94% 7,110,644 1.92% 1.57% Deferred income tax assets 6,082,702 1.63% 5,740,304 1.55% 5.96% Property, plant and equipment and right-of-use assets 1,659,830 0.44% 1,737,371 0.47% -4.46% Investment in investees, associates and joint ventures (1) 14,483,955 3.88% 15,060,943 4.06% -3.83% Derivative financial instruments, such as interest rate and foreign exchange swaps 82,100 0.02% 320,608 0.09% -74.39% Other assets (2) 1,203,943 0.33% 2,766,118 0.73% -56.48% Total assets 373,223,828 100.00% 370,961,369 100.00% 0.61% Note 1: Investment in investees, associates and joint ventures primarily includes equity investment in funds and provincial asset management companies, among others, made by the Group to enhance its comprehensive financial service capabilities. Note 2: Other assets mainly include goodwill and other miscellaneous assets.
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Far East Horizon Limited ·2026 Interim Report 38 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 4.2 Interest-earning Assets The main component of the Group ’s assets was interest-earning assets, which accounted for 73.98% of the Group ’s total assets as at 30 June 2026. In the first half of 2026, the Group dynamically adjusted the development strategies of each industry sector in accordance with the environment and industry patterns. While cultivating the market in depth, it also strengthened risk management and control in a prudent manner, and strengthened the risk identification of sub-sectors and customer qualifications. Under the premise of asset safety, the Group steadily promoted the expansion of financial services to maintain its interest-earning assets at a stable size. The following table sets forth the analysis of interest-earning assets as of the dates indicated. 30 June 2026 31 December 2025 RMB’000 % of total RMB’000 % of total Change % Net interest-earning assets Included in loans and accounts receivable 281,546,156 99.67% 270,657,286 99.49% 4.02% Included in financial assets at fair value through profit or loss 925,595 0.33% 1,389,541 0.51% -33.39% Total net interest-earning assets 282,471,751 100.00% 272,046,827 100.00% 3.83% Provision for loans and accounts receivables (6,346,900) (6,343,812) 0.05% Provision for financial assets at fair value through profit or loss (7,986) (11,870) -32.72% Less: total provision for interest-earning assets (6,354,886) (6,355,682) -0.01% Net interest-earning assets 276,116,865 265,691,145 3.92%
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Integrating global resources and promoting industry development 39INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 4.2.1 Loans and Accounts Receivable The following table sets forth the analysis of loans and accounts receivable as of the dates indicated. 30 June 2026 31 December 2025 RMB’000 % of total RMB’000 % of total Change % Net interest-earning assets included in loans and accounts receivable 275,199,256 96.95% 264,313,474 96.63% 4.12% Others (1) 8,646,886 3.05% 9,206,069 3.37% -6.07% Net loans and accounts receivable 283,846,142 100.00% 273,519,543 100.00% 3.78% Note: (1) Others included notes receivable and accounts receivable related to industrial operation.
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Far East Horizon Limited ·2026 Interim Report 40 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 4.2.2 Net Interest-earning Assets by Industry The following table sets forth net interest-earning assets of the Group by industry as of the dates indicated (1). 30 June 2026 31 December 2025 RMB’000 % of total RMB’000 % of total Change % Healthcare 11,858,385 4.20% 14,091,124 5.18% -15.85% Culture & tourism 38,389,894 13.59% 35,700,324 13.12% 7.53% Engineering construction 37,182,062 13.16% 39,830,213 14.64% -6.65% Machinery manufacturing 25,506,252 9.03% 21,956,976 8.07% 16.16% Chemical & medicine 21,925,262 7.76% 17,605,462 6.47% 24.54% Electronic information 11,011,971 3.90% 10,855,200 3.99% 1.44% Public consuming 31,573,392 11.18% 29,444,805 10.82% 7.23% Transportation & logistics 21,257,366 7.53% 21,365,177 7.85% -0.50% Urban public utility 83,767,167 29.65% 81,197,546 29.86% 3.16% Total 282,471,751 100.00% 272,046,827 100.00% 3.83% Notes: (1) Interest-earning assets for chemical & medicine, machinery manufacturing, public consuming, culture & tourism and other industries among the target industries of the Group maintained faster growth in the first half of 2026, which was attributable to (i) the Group ’s business expansion and in-depth exploration of the respective industries, expanding the customer base in the above industries and increasing the introduction of high-quality customers in the above industries; (ii) the Group ’s adaptation to the changes in the macro-economy and the trend of the industrial environment and adjustments to the layout of key industries; and (iii) the Group ’s continuous maintenance of quality industries and customers and exploration of their needs for financial services. (2) As at 30 June 2026, the interest-earning assets of urban public utility were further divided into sub-sectors, including public transportation infrastructure, water, electricity, gas and other operational services, urban environmental governance, energy-saving and carbon-reduction projects, smart city upgrading and transformation, emerging industry facilities and operation services, and other industries. (3) As at 30 June 2026, the net interest-earning assets of the Group ’s inclusive finance business amounted to RMB35,634 million, which maintained stable growth as compared to RMB28,179 million as at 31 December 2025. For the details of the inclusive finance business, please refer to the discussion and analysis in item 15 of this section.
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Integrating global resources and promoting industry development 41INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 4.2.3 Net Interest-earning Assets by Region The table below sets forth net interest-earning assets of the Group by region as of the dates indicated. 30 June 2026 31 December 2025 RMB’000 % of total RMB’000 % of total Northeast China 5,509,608 1.95% 5,566,886 2.05% Northern China 29,473,002 10.43% 27,582,444 10.14% Eastern China 140,650,266 49.80% 136,434,383 50.15% Southern China 22,825,600 8.08% 19,275,152 7.09% Central China 40,792,738 14.44% 42,113,588 15.48% Northwest China 13,466,854 4.77% 12,177,399 4.48% Southwest China 29,753,683 10.53% 28,896,975 10.61% Total 282,471,751 100.00% 272,046,827 100.00%
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Far East Horizon Limited ·2026 Interim Report 42 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS The table below sets forth net interest-earning assets of the urban public utility industry by region as of the dates indicated. 30 June 2026 31 December 2025 RMB’000 % of total RMB’000 % of total Northeast China 793,330 0.95% 424,477 0.52% Northern China 7,026,729 8.39% 6,319,335 7.78% Eastern China 43,036,849 51.38% 42,926,056 52.87% Southern China 5,759,778 6.87% 4,340,723 5.35% Central China 13,461,133 16.07% 12,919,992 15.91% Northwest China 3,264,103 3.90% 3,555,910 4.38% Southwest China 10,425,245 12.44% 10,711,053 13.19% Total 83,767,167 100.00% 81,197,546 100.00%
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Integrating global resources and promoting industry development 43INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 4.2.4 Aging Analysis of Net Interest-earning Assets The following table sets forth an aging analysis of net interest-earning assets as of the dates indicated, categorized by the time elapsed since the effective date of the relevant leases, entrusted loans, mortgage loans, credit assignment and factoring contracts. 30 June 2026 31 December 2025 RMB’000 % of total RMB’000 % of total Change % Net interest-earning assets Within 1 year 183,467,074 64.95% 181,199,396 66.61% 1.25% 1 to 2 years 74,465,368 26.36% 65,973,235 24.25% 12.87% 2 to 3 years 16,587,647 5.87% 15,000,594 5.51% 10.58% 3 years and beyond 7,951,662 2.82% 9,873,602 3.63% -19.47% Total 282,471,751 100.00% 272,046,827 100.00% 3.83% Net interest-earning assets within one year represented net interest-earning assets that become effective within one year from the reporting date indicated, and were still valid as at the end of the year or the end of the period. As at 30 June 2026, net interest-earning assets within one year as set out in the table above represented 64.95% of net interest-earning assets of the Group, which decreased slightly as compared to the end of the previous year, indicating that the Group still maintained steady flows of interest-earning assets.
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Far East Horizon Limited ·2026 Interim Report 44 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 4.2.5 Maturity Profile of Net Interest-earning Assets The following table sets forth the maturity profile of the net interest-earning assets as of the dates indicated. 30 June 2026 31 December 2025 RMB’000 % of total RMB’000 % of total Change % Maturity date Within 1 year 158,353,568 56.07% 154,494,031 56.79% 2.50% 1 to 2 years 87,636,643 31.02% 83,031,995 30.52% 5.55% 2 to 3 years 32,549,417 11.52% 29,861,432 10.98% 9.00% 3 years and beyond 3,932,123 1.39% 4,659,369 1.71% -15.61% Total 282,471,751 100.00% 272,046,827 100.00% 3.83% Net interest-earning assets due within one year represent net interest-earning assets which the Group will receive within one year of the reporting date indicated. As at 30 June 2026, the proportion of net interest-earning assets due within 1 year decreased and the proportion of those due in more than 1 year increased among net interest-earning assets due within the respective periods as set forth in the table above, which was mainly due to the fact that the Group moderately increased asset duration of projects of high quality customers during the year to obtain sustained and stable cash inflows.
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Integrating global resources and promoting industry development 45INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 4.2.6 Asset Quality of Net Interest-earning Assets 4.2.6.1 Five-category Classification of Net Interest-earning Assets The Group implements a five-category classification of interest-earning assets that accurately reveals the asset risk profile and confirms the quality of assets primarily by obtaining information on the qualification of stock assets. On such basis, we have deployed management resources and efforts in a focused manner to effectively implement measures on category management, and have strengthened risk anticipation and the relevance of risk prevention to improve the ability to control asset risks. In particular, since its establishment, the inclusive finance business has consistently focused on serving the lower-tier long-tail market, and its business model has matured. After reviewing the asset performance of the inclusive finance business over several years, the Group determined that while the inclusive finance business offered relatively higher yields compared to the traditional financial business, the existing customer base also exhibited a risk profile characterized by higher default rates. To present a more accurate picture of the operating results of the inclusive finance business, continuously solidify asset quality, and prevent the accumulation or deferral of bad debt risks, the Group adopted a more prudent write- off policy that is better aligned with current business development to write off projects upon 30+ days overdue. The adoption of this policy resulted in a significant increase in write-off losses for the inclusive finance business during the period. However, with the steady growth of the business, risk diversification across geographies and industries, and further enhancements to its risk control and operating systems, the inclusive finance business is well-positioned to achieve an optimal balance between return and risk. Classification criteria In determining the classification of the interest-earning assets portfolio, the Group applies a series of criteria that is derived from its own internal regulations regarding the management of lease assets. These criteria are designed to assess the possibility of repayment by the borrower and the collectability of principal and interest on our interest-earning assets. The interest-earning assets classification criteria focus on a number of factors, if applicable. The asset classifications of the Group include: Pass. There is no reason to doubt that the loan principal and interest will not be paid by the debtor in full and/or on a timely basis. There is no reason to suspect that the interest-earning assets will be impaired. Special mention. Even though the debtor is able to pay its payments in a timely manner, there are still factors that could adversely affect its ability to pay, which are related to changes in the economic, policy and industrial environment, the structure of the debtor ’s property rights and the debtor ’s management mechanisms, organizational framework and management personnel adjustments, operating capabilities, material investments and credit size and conditions, as well as the effects of changes in the value of core assets on the debtor ’s ability to repay; while taking into consideration the effects of subjective factors, including any change in the debtor ’s willingness to repay, on the quality of assets, such as if payments have been overdue for 30 days or more, then the interest-earning assets for this contract shall be classified as special mention or lower. Substandard. The debtor ’s ability to pay is in question as it is unable to make its payments in full with its operating revenues, and the Group is likely to incur losses notwithstanding the enforcement of any guarantees underlying the contract. The Group takes into account other factors, for example, if lease payments have been overdue for over three months, then the interest-earning assets for this contract shall be classified as substandard or lower.
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Far East Horizon Limited ·2026 Interim Report 46 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS Doubtful. The debtor ’s ability to pay is in question as it is unable to make payments in full and/or on a timely basis with its operating revenues and we are likely to incur significant losses notwithstanding the enforcement of any guarantees underlying the contract. The Group takes into account other factors, for example, if payments have been overdue for over six months, the interest-earning assets for this contract shall be classified as doubtful or lower. Loss. After taking all possible steps or going through all necessary legal procedures, payments remain overdue or only a very limited portion has been recovered. Asset management measures In the first half of 2026, amid the complex environment characterized by macroeconomic structural adjustments and divergent industry risks, the Group, guided by strategic upgrading, continued to refine its governance and control architecture, featuring centralized management by the asset center alongside hierarchical, classified, and vertically penetrating supervision. Adhering to the principle of “early detection, early decision-making, and early disposition ”, the Group established a full-chain risk prevention system covering early warning monitoring, disposition and cash recovery. During the Reporting Period, asset quality remained sound, with the non-performing asset ratio showing a steady trend with a slight decline and the provision coverage ratio staying at a high level, providing a solid safeguard for the Group ’s prudent operation. Enhancing organizational independence and professional specialization to build an end-to-end asset control system Serving as an independent and pivotal link in its business chain, the Group ’s asset management function has consistently upheld the full-process closed-loop management principle of “independent inspection, independent decision-making, and independent disposition ”. The team was structured into two functional pillars, consisting of risk monitoring and asset disposition, with a professional monitoring team of over 70 members and a dedicated disposition team of nearly 100 members. It achieved nationwide coverage through grid-based management to ensure a rapid 3-hour response, while implementing a flattened structure and a fast-track approval mechanism, enabling major project proposals to reach the decision-making level directly. By streamlining and optimizing approval nodes, the Group fostered efficient collaboration and swift response, laying a solid organizational foundation for maintaining sound asset quality. Deepening the “human-machine co-governance ” early warning model to strengthen risk identification and predictive capabilities Adhering to the principle of “early detection, early decision-making, and early disposition ”, the Group has established an intelligent early warning and defense system powered by human-machine collaboration. By categorizing and tiering its transacted customer base, the Company formulated quarterly, semi-annual, and annual inspection plans tailored to specific customer profiles. In parallel, the early warning system continuously gathered data on overdue payments, industrial and commercial registrations, judicial rulings, and public sentiment on a 24/7 basis, enabling the Company to dynamically update daily customer risk profiles. Through the rigorous inspection and early warning regime, the Company maintained real-time visibility into changes in the core assets of its customers. In the event of any default, the disposition team was well-positioned to deploy targeted interventions to effectively mitigate project losses and maximize asset recovery.
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Integrating global resources and promoting industry development 47INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS Innovating diversified disposition approaches to enhance asset recovery and value management capabilities The Group has further enriched its asset disposition toolkit. To address distressed assets, the Group maintained a long-term dual-track operational framework combining high-frequency on-site recovery and legal litigation, while placing particular emphasis on leveraging legal remedies to safeguard its rights. With rigorous operational procedures and meticulous evidentiary preparation, the Group earned strong recognition from local courts across jurisdictions. Furthermore, leveraging its integrated industrial service and operational capabilities, the Group revitalized underperforming assets, coordinated and integrated stakeholder resources, and broadened recovery channels across multiple dimensions. Meanwhile, for legacy bad debts, it consistently adhered to the principle of “retaining case tracking post-write-off to ensure maximum recovery ”, continuously enhancing the recovery efficiency and value optimization of non-performing assets. Establishing a scientific and quantified incentive mechanism to unleash the core operational capabilities of the asset management team The Group continuously refined the customer value model for its asset management team, evaluating disposition contributions through a quantitative metric that multiplies recovery percentage points by difficulty coefficients. Coupled with a net revenue-based bonus structure, this created a dual-incentive framework that effectively addressed the industry challenge of quantifying asset recovery performance. For major and complex projects, the Group implemented list-based management alongside real-time incentives, ensuring well-defined goals and prompt rewards. Meanwhile, supported by specialized training programmes and standardized operational manuals, the Group consistently sharpened the execution capabilities of its team, maintaining industry-leading talent density and professional expertise to provide solid human capital support for its asset management operations. The following table sets forth the five-category classification of interest-earning assets as of the dates indicated. 30 June 2026 31 December 2025 31 December 2024 31 December 2023 RMB’000 % of total RMB’000 % of total RMB’000 % of total RMB’000 % of total Pass 264,377,443 93.59% 254,297,592 93.47% 243,298,013 93.35% 250,225,686 92.99% Special mention 15,306,805 5.42% 14,959,413 5.50% 14,553,198 5.58% 16,066,847 5.97% Substandard 1,080,389 0.38% 1,158,147 0.43% 1,091,725 0.42% 1,484,565 0.55% Doubtful 1,707,114 0.61% 1,631,675 0.60% 1,698,395 0.65% 1,307,641 0.49% Loss – – – – – – – – Net interest-earning assets 282,471,751 100.00% 272,046,827 100.00% 260,641,331 100.00% 269,084,739 100.00% Non-performing assets 2,787,503 2,789,822 2,790,120 2,792,206 Non-performing asset ratio 0.99% 1.03% 1.07% 1.04%
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Far East Horizon Limited ·2026 Interim Report 48 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS The Group has established a prudent asset quality control policy and adhered to a stringent and conservative asset classification policy. As at 30 June 2026, the Group ’s assets under special mention accounted for 5.42% of its net interest-earning assets, representing a decrease of 0.08 percentage point from 5.50% at the end of 2025. During the Reporting Period, the quality of assets continued to be further optimized. The assets under special mention in the urban public utility industry accounted for 21.49% of the total assets under special mention. The proportion of assets under special mention in the segment was 3.93%, which was lower than the proportion of the overall assets under special mention of the Group. Performing essential urban infrastructure functions, the segment exhibits strong, inelastic demand and stable long-term growth prospects. However, it features high capital intensity, substantial investment scale, long payback periods, and relatively rigid operating costs. Compounded by a slowdown in the disbursement of government subsidies that constrained operating cash flows for certain customers, potential uncertainty was introduced to their short-term solvency. Accordingly, the Group prudently reclassified a greater portion of assets in this segment as assets under special mention. The assets under special mention in the cultural & tourism industry accounted for 18.10% of the total assets under special mention. The proportion of assets under special mention in the segment was 7.22%, which was higher than the proportion of the overall assets under special mention of the Group. While the segment demonstrated broad long-term growth prospects, private education customers faced persistent student enrollment pressures amid declining birth rates. Meanwhile, catering and hospitality customers experienced lower-than-expected revenues due to weakening consumer sentiment. Compounded by the segment ’s inherent characteristics of substantial upfront fixed-asset investments and long payback periods, short-term cash flows for certain customers were exposed to volatility risks. Accordingly, the Group prudently reclassified a greater portion of assets in this segment as assets under special mention. The assets under special mention in the public consuming industry accounted for 11.40% of the total assets under special mention. The proportion of assets under special mention in the segment was 5.53%, which was slightly higher than the proportion of the overall assets under special mention of the Group. The segment was affected by sluggish consumer demand and intensifying industry competition, with certain export-oriented customers impacted by external trade policies. Compounded by risk exposures involving actual controllers of individual customers, financing capabilities were impaired, leading to a decline in their overall debt service capabilities. Accordingly, the Group prudently reclassified a greater portion of assets in this segment as assets under special mention. The assets under special mention in the engineering construction industry accounted for 11.27% of the total assets under special mention. The proportion of assets under special mention in the segment was 4.64%, which was lower than the proportion of the overall assets under special mention of the Group. As a key pillar of the national economy, the segment is supported by solid long-term fundamentals. However, affected by complex payment chains and obstructed payment pathways in engineering projects, certain projects faced frequent short-term payment delays. Meanwhile, squeezed by both narrowing profit margins and bad debt provisions, certain customers exhibited a high concentration of accounts receivable, introducing uncertainties to their short-term liquidity turnover. Accordingly, the Group prudently reclassified a greater portion of assets in this segment as assets under special mention.
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Integrating global resources and promoting industry development 49INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS The following table sets forth the analysis of the Group ’s assets under special mention by industry as of the dates indicated. 30 June 2026 31 December 2025 31 December 2024 RMB’000 % of total RMB’000 % of total RMB’000 % of total Healthcare 1,478,994 9.66% 1,976,746 13.21% 1,947,346 13.38% Culture & tourism 2,769,886 18.10% 2,659,871 17.78% 2,469,198 16.97% Engineering construction 1,725,593 11.27% 1,683,702 11.26% 1,709,770 11.75% Machinery manufacturing 1,572,972 10.28% 1,098,469 7.34% 596,070 4.10% Chemical & medicine 1,363,915 8.91% 1,079,477 7.22% 389,683 2.68% Electronic information 810,960 5.30% 744,490 4.98% 659,570 4.53% Public consuming 1,745,708 11.40% 1,383,159 9.25% 574,950 3.95% Transportation & logistics 549,799 3.59% 674,639 4.51% 760,853 5.23% Urban public utility 3,288,978 21.49% 3,658,860 24.45% 5,445,758 37.41% Total 15,306,805 100.00% 14,959,413 100.00% 14,553,198 100.00% Through prudent asset classification and prudent monitoring and management of assets under special mention, the migration from assets under special mention to non-performing assets of the Group was at a low level.
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Far East Horizon Limited ·2026 Interim Report 50 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS The following table sets forth the migration of the Group ’s assets under special mention as of the dates indicated. 30 June 2026 30 June 2025 31 December 2025 31 December 2024 31 December 2023 % of total % of total % of total % of total % of total Pass 2.35% 0.43% 0.18% 0.01% 0.00% Special mention 56.14% 56.63% 31.80% 31.09% 46.28% Substandard 3.09% 7.10% 5.51% 6.75% 5.37% Doubtful 0.70% 1.94% 4.37% 7.99% 1.42% Loss 3.19% 1.82% 2.59% 3.09% 5.58% Recovery 34.53% 32.08% 55.55% 51.07% 41.35% Total 100.00% 100.00% 100.00% 100.00% 100.00% As at 30 June 2026, the size of non-performing assets was RMB2,788 million, which remained basically flat as compared with the end of last year, and the non-performing asset ratio was 0.99%, which slightly decreased as compared with the end of last year. The overall asset quality remained safe and under control. For the non-performing assets of the inclusive finance business of the Group, please refer to the discussion and analysis in item 15 of this section. The non-performing assets of the urban public utility industry accounted for 58.31% of the total non- performing assets. The proportion of non-performing assets in the segment was 1.94%, which was higher than the proportion of the overall non-performing assets of the Group. The segment is characterized by both public welfare attributes and inelastic demand, resulting in solid fundamentals in the industry. However, affected by regional fiscal tightening and slowed fund disbursements, certain customers faced continued delays in the collection of engineering payments and government subsidies. Compounded by the industry ’s inherent characteristics of substantial investment scale, low capital turnover efficiency, and high operating costs, certain enterprises in the segment encountered shrinking operating cash flows and strained capital chains, leading to loan defaults. Accordingly, the Group prudently reclassified a greater portion of assets in this segment as substandard and doubtful assets.
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Integrating global resources and promoting industry development 51INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS The non-performing assets of the healthcare industry accounted for 10.27% of the total non-performing assets. The proportion of non-performing assets in the segment was 2.41%, which was higher than the proportion of the overall non-performing assets of the Group. Driven by accelerating population aging, health consumption upgrades, and continuous policy support, the segment is underpinned by broad long-term growth prospects. However, affected by healthcare payment reforms and the implementation of normalized centralized procurement, profit margins for certain customers were squeezed. Compounded by extended medical insurance settlement cycles, their debt service capabilities weakened, leading to defaults on scheduled payments. Accordingly, the Group prudently reclassified a greater portion of assets in this segment as substandard and doubtful assets. The non-performing assets of the culture & tourism industry accounted for 9.26% of the total non- performing assets. The proportion of non-performing assets in the segment was 0.67%, which was lower than the proportion of the overall non-performing assets of the Group. Non-performing assets in the segment were primarily concentrated in private education, where student enrollments contracted continuously under the impact of declining birth rates. Meanwhile, impacted by the dual headwinds of industry overcapacity and a tepid tourism recovery, hotel customers operated under pressure across the segment, with certain independent hotels with substantial upfront capital investments struggling to maintain operations. Compounded by operational failures among individual customers, their cash flows were virtually depleted. Accordingly, the Group prudently reclassified a greater portion of assets in this segment as substandard and doubtful assets. The non-performing assets of the machinery manufacturing industry accounted for 5.14% of the total non-performing assets. The proportion of non-performing assets in the segment was 0.56%, which was lower than the proportion of the overall non-performing assets of the Group. Certain private customers in the segment were impacted by a downturn in the downstream industries and sluggish demand in sub-segments, resulting in narrowing profit margins. Compounded by historical over-expansion and a high reliance on non- standard financing, their cash flows remained under continuous pressure. In addition, individual customers suffered from corporate governance deficiencies, which impaired their access to financing and ultimately led to a deterioration in their debt service capabilities. Accordingly, the Group prudently reclassified a greater portion of assets in this segment as substandard and doubtful assets.
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Far East Horizon Limited ·2026 Interim Report 52 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS The following table sets forth the analysis on the Group ’s non-performing assets by industry as of the dates indicated. 30 June 2026 31 December 2025 31 December 2024 RMB’000 % of total RMB’000 % of total RMB’000 % of total Healthcare 286,296 10.27% 361,859 12.97% 416,386 14.92% Culture & tourism 258,087 9.26% 158,402 5.68% 331,883 11.89% Engineering construction 91,695 3.29% 110,938 3.98% 162,488 5.82% Machinery manufacturing 143,267 5.14% 109,138 3.91% 81,444 2.92% Chemical & medicine 115,061 4.13% 143,320 5.14% 7,065 0.25% Electronic information 96,619 3.47% 140,549 5.04% 59,038 2.12% Public consuming 66,034 2.37% 63,413 2.27% 32,545 1.17% Transportation & logistics 104,706 3.76% 62,108 2.23% 339,798 12.18% Urban public utility 1,625,738 58.31% 1,640,095 58.78% 1,359,473 48.73% Total 2,787,503 100.00% 2,789,822 100.00% 2,790,120 100.00%
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Integrating global resources and promoting industry development 53INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS The following table sets forth the analysis on the Group ’s substandard assets by industry as of the dates indicated. 30 June 2026 31 December 2025 31 December 2024 RMB’000 % of total RMB’000 % of total RMB’000 % of total Healthcare 219,844 20.35% 284,346 24.55% 206,125 18.88% Culture & tourism 244,412 22.62% 129,432 11.18% 213,625 19.57% Engineering construction 19,405 1.80% 110,938 9.58% 139,891 12.81% Machinery manufacturing 88,185 8.16% 103,370 8.93% 76,319 6.99% Chemical & medicine 47,952 4.44% 76,211 6.58% 4,008 0.37% Electronic information 2,406 0.22% 40,375 3.49% 13,855 1.27% Public consuming 47,171 4.37% 56,317 4.86% – 0.00% Transportation & logistics 56,443 5.22% 33,134 2.86% 112,431 10.30% Urban public utility 354,571 32.82% 324,024 27.97% 325,471 29.81% Total 1,080,389 100.00% 1,158,147 100.00% 1,091,725 100.00%
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Far East Horizon Limited ·2026 Interim Report 54 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS The following table sets forth the analysis on the Group ’s doubtful assets by industry as of the dates indicated. 30 June 2026 31 December 2025 31 December 2024 RMB’000 % of total RMB’000 % of total RMB’000 % of total Healthcare 66,452 3.89% 77,513 4.75% 210,261 12.38% Culture & tourism 13,675 0.80% 28,970 1.78% 118,258 6.96% Engineering construction 72,290 4.23% – – 22,597 1.33% Machinery manufacturing 55,082 3.23% 5,768 0.35% 5,125 0.30% Chemical & medicine 67,109 3.93% 67,109 4.11% 3,057 0.18% Electronic information 94,213 5.52% 100,174 6.14% 45,183 2.66% Public consuming 18,863 1.10% 7,096 0.43% 32,545 1.92% Transportation & logistics 48,263 2.83% 28,974 1.78% 227,367 13.39% Urban public utility 1,271,167 74.47% 1,316,071 80.66% 1,034,002 60.88% Total 1,707,114 100.00% 1,631,675 100.00% 1,698,395 100.00%
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Integrating global resources and promoting industry development 55INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS The following table sets forth the analysis on the Group ’s loss assets by industry as of the dates indicated. 30 June 2026 31 December 2025 31 December 2024 RMB’000 % of total RMB’000 % of total RMB’000 % of total Healthcare – – – – – – Culture & tourism – – – – – – Engineering construction – – – – – – Machinery manufacturing – – – – – – Chemical & medicine – – – – – – Electronic information – – – – – – Public consuming – – – – – – Transportation & logistics – – – – – – Urban public utility – – – – – – Total – – – – – –
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Far East Horizon Limited ·2026 Interim Report 56 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS The following table sets forth the movement of non-performing assets of the Group as of the dates indicated. 30 June 2026 31 December 2025 31 December 2024 RMB’000 RMB’000 RMB’000 At the beginning of the period/ year 2,789,822 2,790,120 2,792,206 Downgrade (1) 1,705,511 2,945,175 3,147,845 Upgrades – (208,290) (1,393) Recoveries (536,004) (1,331,723) (2,012,188) Write-off/transfer-out (1,171,826) (1,405,460) (1,136,350) At the end of the period/year 2,787,503 2,789,822 2,790,120 Non-performing asset ratio 0.99% 1.03% 1.07% Non-performing asset formation ratio (2) 0.43% 0.54% 0.43% Notes: (1) Represents downgrades of interest-earning assets classified as pass or special mention at the end of prior year and interest-earning assets newly classified in the period to non-performing categories; (2) Non-performing asset formation ratio = (the balance of non-performing assets at the end of period – the balance of non-performing assets at the beginning of period + write-off/transfer-out of non-performing assets for the period)/(net pass interest-earning assets at the beginning of period + net interest-earning assets under special mention at the beginning of period). In the first half of 2026, the Group ’s overall non-performing loan formation rate was 0.43%, among which traditional financial business was 0.05% (2025: 0.15%). In addition, since 2025, the inclusive finance business had adopted a write-off policy to write off projects upon 30+ days overdue. In the first half of 2026, bad debt write-offs amounted to RMB1,051,030,000 (2025: RMB1,043,562,000), with a non-performing asset formation ratio of 3.73% (2025: 6.05%), which was higher than the overall level of the Group. For details of the inclusive finance business, please refer to the discussion and analysis in item 15 of this section.
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Integrating global resources and promoting industry development 57INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 4.2.6.2 Interest-earning Assets Provisions The following table sets forth the analysis of the provisions under our assessment methodology as of the dates indicated. 30 June 2026 31 December 2025 31 December 2024 31 December 2023 RMB’000 % of total RMB’000 % of total RMB’000 % of total RMB’000 % of total Interest-earning assets provisions: Provision for non-performing assets 1,419,620 22.34% 1,563,982 24.61% 1,866,617 29.37% 1,683,143 26.49% Provision for pass and special mention assets 4,935,266 77.66% 4,791,700 75.39% 4,488,823 70.63% 4,671,589 73.51% Total 6,354,886 100.00% 6,355,682 100.00% 6,355,440 100.00% 6,354,732 100.00% Non-performing assets 2,787,503 2,789,822 2,790,120 2,792,206 Provision coverage ratio 227.98% 227.82% 227.78% 227.59% Credit cost ratio (1) 0.33% 0.31% 0.30% 0.13% Note: (1) Credit cost ratio = provision for interest-earning assets for the period/average balance of interest-earning assets. In the first half of 2026, the Group ’s overall credit cost ratio was 0.33%, among which traditional financial business was 0.00% (2025: -0.14%). In addition, as the inclusive finance business focused on lower-tier customers in the long-tail market, the Group raised its provisioning level to ensure safe and stable asset quality. The credit cost ratio for the inclusive finance business was 2.91% (2025: 5.19%), which was higher than the overall level of the Group. For details, please refer to the discussion and analysis in item 15 of this section.
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Far East Horizon Limited ·2026 Interim Report 58 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 4.2.6.3 Write-offs of Interest-earning Assets The following table sets forth the write-offs of interest-earning assets as of the dates indicated. 30 June 2026 31 December 2025 31 December 2024 31 December 2023 RMB’000 RMB’000 RMB’000 RMB’000 Write-off/disposal of non-performing assets 1,171,826 1,405,460 1,136,350 1,399,102 Non-performing assets as at the end of last year 2,789,822 2,790,120 2,792,206 2,831,337 Write-off ratio (1) 42.00% 50.37% 40.70% 49.41% Note: (1) The write-off ratio is calculated as the amount of write-off/disposal of non-performing assets over the net non-performing assets as of the beginning of the relevant year. In the first half of 2026, according to the requirements of the accounting standards, the Group wrote off bad debts of RMB1,171,826,000, which were mainly distributed in the public consuming, machinery manufacturing, culture & tourism and other industries, accounting for RMB372,539,000, RMB265,913,000 and RMB179,849,000, respectively. Among which, the written-off bad debts of the inclusive finance business amounted to RMB1,051,030,000, mainly due to more prudent amendments to rules in relation to bad debt write-offs in the segment. For details of the inclusive finance business, please refer to the discussion and analysis in item 15 of this section. Despite the Group ’s effort in collection through judicial means, actionable assets were unable to cover risk exposure of projects at the moment. Although at the moment the Group was required to write off the bad debts of the relevant non-performing assets pursuant to the requirements of the accounting standards, the Group did not terminate the disposal of assets, but continued to collect the payment through disposal of equipment/ pledge, and exerting pressure on guarantors. From 2011 to 30 June 2026, the written-off bad debts amounted to RMB11,010,458,000, and RMB2,990,091,000 had been recovered, representing a point-in-time recovery rate of 27.15%. Among which, the accumulated written-off bad debts of the inclusive finance business amounted to RMB2,525,449,000, with recovered amount of RMB303,451,000, representing a point-in-time recovery rate of 12.01%.
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Integrating global resources and promoting industry development 59INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 4.2.6.4 Interest-earning Assets (Overdue for More than 30 Days) The following table sets forth the interest-earning assets (overdue for more than 30 days) as of the dates indicated. 30 June 2026 31 December 2025 31 December 2024 31 December 2023 Overdue ratio (over 30 days) 0.81% 0.82% 0.90% 0.91% The Group adhered to the prudent strategies of risk control and asset management. The Group ’s overdue ratio (over 30 days) was 0.81% as at 30 June 2026, which slightly decreased as compared to the end of 2025. The following table sets forth the interest-earning assets (overdue more than 30 days) by industry as of the dates indicated. 30 June 2026 31 December 2025 RMB’000 % of total RMB’000 % of total Healthcare 154,922 6.78% 178,041 7.94% Culture & tourism 153,318 6.71% 37,648 1.68% Engineering construction 166,815 7.30% 33,891 1.51% Machinery manufacturing 118,260 5.17% 101,339 4.52% Chemical & medicine 67,109 2.94% 202,672 9.04% Electronic information 114,482 5.01% 110,181 4.92% Public consuming 30,946 1.35% 54,616 2.44% Transportation & logistics 81,967 3.59% 50,266 2.24% Urban public utility 1,397,483 61.15% 1,473,029 65.71% Total 2,285,302 100.00% 2,241,683 100.00%
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Far East Horizon Limited ·2026 Interim Report 60 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS The following table sets forth the interest-earning assets (overdue for more than 30 days) by classification as of the dates indicated. 30 June 2026 31 December 2025 RMB’000 % of total RMB’000 % of total Pass – – – – Special mention 446,007 19.52% 376,429 16.79% Substandard 154,557 6.76% 236,511 10.55% Doubtful 1,684,738 73.72% 1,628,743 72.66% Loss – – – – Total 2,285,302 100.00% 2,241,683 100.00%
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Integrating global resources and promoting industry development 61INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 4.3 Liabilities (Overview) As at 30 June 2026, total liabilities of the Group amounted to RMB312,106,211,000, representing an increase of RMB1,438,486,000 or 0.46% as compared to the end of last year, among which, the interest-bearing bank and other borrowings were the main component of the Group ’s total liabilities, accounting for 85.29% of the total, which decreased by 0.63 percentage point as compared to 85.92% as at the end of last year. The following table sets forth the liability analysis as of the dates indicated. 30 June 2026 31 December 2025 RMB’000 % of total RMB’000 % of total Change % Interest-bearing bank and other borrowings 266,188,806 85.29% 266,919,667 85.92% -0.27% Other payables and accruals 30,631,502 9.81% 29,904,723 9.63% 2.43% Trade and bills payables 8,243,260 2.64% 7,771,420 2.50% 6.07% Tax payables 1,355,065 0.43% 1,702,395 0.55% -20.40% Derivative financial instruments 2,985,300 0.96% 1,312,277 0.42% 127.49% Deferred tax liabilities 1,095,324 0.35% 1,328,295 0.43% -17.54% Deferred revenue 786,973 0.25% 834,805 0.27% -5.73% Lease liabilities 819,981 0.27% 894,143 0.28% -8.29% Total liabilities 312,106,211 100.00% 310,667,725 100.00% 0.46%
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Far East Horizon Limited ·2026 Interim Report 62 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 4.4 Interest-bearing Bank and Other Borrowings In the face of a complicated and ever-changing financial environment domestically and overseas, the Group continued to consolidate reliable financing resources, optimize the debt structure, and flexibly deploy funds. By continuously reducing financing costs, the Group made good progress in both direct and indirect financing markets, supporting the effective advancement of the Company ’s overall operations. With respect to the direct financing market, the Group continuously diversified its issuance offerings, leveraged unique asset characteristics, and optimized its product structure. Since 2026, the Group had issued multiple asset securitization products with the themes of “high-quality development for medium, small and micro enterprises (MSMEs) ” and “facilitating high-quality development of tech enterprises ”, which formed positive synergy with the asset side and fully implemented national high-quality development strategies to support MSMEs and tech enterprises. These issuances gained high market recognition as evidenced by repeatedly record-low issuance rates. In addition, the Group seized a favorable market window in early 2026 to issue USD400 million three-year senior unsecured notes at a relatively low interest rate, which were oversubscribed in the international market, demonstrating the Group ’s exceptional capability to access global resources. With respect to the indirect financing market, the Group aligned with the policy directives regarding green finance, inclusive finance and technological innovation to meet the Company ’s strategic needs. It continued to deepen strategic partnerships with financial institutions across financial and industrial segments, as well as in the domestic and offshore markets, resulting in a sustained reduction in drawdown interest rates. In the first half of 2026, the Group secured approximately RMB1.1 billion in bank drawdowns designated for “sustainable development ”. These funds were utilized to support areas such as renewable energy, sewage treatment and energy efficiency improvements. In conclusion, the Group has continuously diversified its financing methods, continuously improved the quality of its financing, optimized its debt structure, and continuously reduced financing costs. Through the flexible mobilization of multiple channels, products, markets and currencies, the Group can secure its needs for resources in a stable manner. Looking forward to the future, the Group is confident that, backed by robust operational momentum and profound cooperation within financial markets, it will further improve its competitiveness on the liability side. As at 30 June 2026, the total sum of the Group ’s interest-bearing bank and other borrowings amounted to RMB266,188,806,000, representing a decrease of 0.27% as compared with RMB266,919,667,000 as at the end of the previous year. The Group ’s borrowings were mainly denominated in RMB and US$.
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Integrating global resources and promoting industry development 63INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS The following table sets forth the distribution between current and non-current interest-bearing bank and other borrowings as of the dates indicated. 30 June 2026 31 December 2025 RMB’000 % of total RMB’000 % of total Change % Current 132,638,232 49.83% 134,110,938 50.24% -1.10% Non-current 133,550,574 50.17% 132,808,729 49.76% 0.56% Total 266,188,806 100.00% 266,919,667 100.00% -0.27% As at 30 June 2026, the Group ’s current interest-bearing bank and other borrowings (including short-term loans and portions that are due within one year in long-term loans) as a percentage of the Group ’s total interest-bearing bank and other borrowings was 49.83%, which decreased as compared to the end of the previous year. The Group moderately increased its financing with terms that aligned with the Company ’s operational needs in a move that balanced against asset duration and cost efficiency, while adhering to a prudent financing strategy and ensuring liquidity availability, all within the context of market conditions. The following table sets forth the distribution between secured and unsecured interest-bearing bank and other borrowings as of the dates indicated. 30 June 2026 31 December 2025 RMB’000 % of total RMB’000 % of total Change % Secured 68,785,506 25.84% 64,988,075 24.35% 5.84% Unsecured 197,403,300 74.16% 201,931,592 75.65% -2.24% Total 266,188,806 100.00% 266,919,667 100.00% -0.27% For the first half of 2026, the Group carefully managed its funding risk. As at 30 June 2026, the proportion of the Group ’s interest-bearing bank and other borrowings that were unsecured accounted for 74.16% of the Group ’s total interest-bearing bank and other borrowings, which slightly decreased as compared to the end of the previous year. The Group continuously balanced and aligned its financing needs with financing conditions, thereby securing financing resources that were better tailored to its needs.
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Far East Horizon Limited ·2026 Interim Report 64 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS The following table sets forth the distribution of interest-bearing bank and other borrowings between bank loans and other loans as of the dates indicated. 30 June 2026 31 December 2025 RMB’000 % of total RMB’000 % of total Change % Bank loans 171,196,228 64.31% 171,213,695 64.14% -0.01% Other loans 94,992,578 35.69% 95,705,972 35.86% -0.75% Total 266,188,806 100.00% 266,919,667 100.00% -0.27% As at 30 June 2026, the proportion of the Group ’s bank loans as a percentage of the Group ’s total bank and other loans increased as compared to the end of the previous year, mainly because the Group continuously deepened its cooperation with banks, demonstrating its long-term and prudent financing strategies. The following table sets forth the distribution of interest-bearing bank and other borrowings between domestic and overseas as of the dates indicated. 30 June 2026 31 December 2025 RMB’000 % of total RMB’000 % of total Change % Domestic 211,931,862 79.62% 207,399,940 77.70% 2.19% Overseas 54,256,944 20.38% 59,519,727 22.30% -8.84% Total 266,188,806 100.00% 266,919,667 100.00% -0.27% As at 30 June 2026, the proportion of the Group ’s domestic borrowings and other borrowings as a percentage of the Group ’s total borrowings was 79.62%, which increased as compared to the end of the previous year, as the Group opportunistically increased its financing in domestic markets in the first half of 2026 based on market conditions, changes in funding costs and the funding needs of its domestic and overseas entities to further reduce funding costs.
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Integrating global resources and promoting industry development 65INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS The following table sets forth the distribution of interest-bearing bank and other borrowings based on the currencies as of the dates indicated. 30 June 2026 31 December 2025 RMB’000 % of total RMB’000 % of total Change % RMB 212,501,800 79.83% 206,473,093 77.35% 2.92% US$ 30,815,155 11.58% 30,358,750 11.37% 1.50% Borrowings in other currencies 22,871,851 8.59% 30,087,824 11.28% -23.98% Total 266,188,806 100.00% 266,919,667 100.00% -0.27% As at 30 June 2026, the Group ’s activities in RMB accounted for 79.83% of its total interest-bearing bank and other borrowings, which increased as compared to the end of the previous year, as the Group increased its financing in domestic markets as and when appropriate. The following table sets forth the distribution of interest-bearing bank and other borrowings based on direct and indirect financing as of the dates indicated. 30 June 2026 31 December 2025 RMB’000 % of total RMB’000 % of total Change % Direct financing 83,881,205 31.51% 75,489,445 28.28% 11.12% Indirect financing 182,307,601 68.49% 191,430,222 71.72% -4.77% Total 266,188,806 100.00% 266,919,667 100.00% -0.27% As at 30 June 2026, the Group ’s indirect financing accounted for 68.49% of the total, which decreased as compared to the end of the previous year. Building on its ongoing commitment to deepen engagement in the credit market, the Company flexibly and prudently secured alternative funding resources by comprehensively considering factors such as cost, duration, and market conditions, thereby continuously solidifying and enhancing the resource foundation for its future development. 4.5 Shareholders ’ Equity As at 30 June 2026, the total equity of the Group was RMB61,117,617,000, representing an increase of RMB823,973,000 or 1.37% from the end of the previous year. During the period, the Company maintained safe and sound operation, striving to increase returns for shareholders, and ensuring the steady increase in the equity attributable to ordinary shareholders of the Company.
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Far East Horizon Limited ·2026 Interim Report 66 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS The following table sets forth the analysis of equity as of the dates indicated. 30 June 2026 31 December 2025 RMB’000 % of total RMB’000 % of total Change % Share capital 15,761,675 25.79% 15,639,775 25.94% 0.78% Equity component of convertible bonds – – 103 0.00% -100.00% Reserve 37,172,378 60.82% 36,302,246 60.21% 2.40% Equity attributable to holders of ordinary shares of the Company (1) 52,934,053 86.61% 51,942,124 86.15% 1.91% Perpetual securities (2) – – – – – Non-controlling interests 8,183,564 13.39% 8,351,520 13.85% -2.01% Total equity 61,117,617 100.00% 60,293,644 100.00% 1.37% Notes: (1) The following table sets forth the change in the equity attributable to the ordinary shareholders of the Company in the first half of 2026. Equity attributable to holders of ordinary shares of the Company 31 December 2025 51,942,124 Profit for the period 2,221,547 Other comprehensive income (208,356) Dividend distribution (1,279,739) Other changes in equity 258,477 30 June 2026 52,934,053 The final dividend of HK$0.31 per share for the year ended 31 December 2025 was approved at the annual general meeting on 10 June 2026 and paid on 29 June 2026. The interim dividend of HK$0.25 per share for the six months ended 30 June 2026 was declared by the Board on 5 August 2026. (2) Issuance of perpetual securities. As at 30 June 2026, the Group did not have outstanding perpetual securities.
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Integrating global resources and promoting industry development 67INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 4.6 Outstanding Guaranteed Convertible Bonds The bonds in the principal amount of US$250,000,000 due 2026, issued by Universe Trek Limited, a wholly-owned subsidiary of the Company, on 15 June 2021 and guaranteed by the Company, were convertible into fully paid ordinary shares in the issued and paid-up capital of the Company in accordance with relevant conditions, and bore zero coupon. Based on the net proceeds from the issuance of such convertible bonds (after deducting the fees, commission and expenses) amounting to approximately US$246 million, the net price of each conversion share of such convertible bonds amounted to approximately HK$10.01 (at the predetermined exchange rate of US$1.00 to HK$7.7614). The convertible bonds were offered and sold to no less than six independent placees (who were independent individuals, corporates and/or institutional investors). The initial conversion price of the convertible bonds was HK$10.20 per conversion share; the conversion price was adjusted to HK$9.76 per conversion share on 30 June 2021 due to the payment of dividend; the conversion price was further adjusted to HK$9.16 per conversion share on 30 June 2022 due to the payment of dividend; the conversion price was further adjusted to HK$8.50 per conversion share on 30 June 2023 due to the payment of dividend; the conversion price was further adjusted to HK$8.35 per conversion share on 22 January 2024 due to the payment of special dividend; the conversion price was further adjusted to HK$7.69 per conversion share on 28 June 2024 due to the payment of dividend; the conversion price was further adjusted to HK$7.38 per conversion share on 5 July 2024 due to the payment of special dividend; the conversion price was further adjusted to HK$7.04 per conversion share on 16 October 2024 due to the payment of dividend; the conversion price was further adjusted to HK$6.70 per conversion share on 6 May 2025 due to the payment of dividend; the conversion price was further adjusted to HK$6.48 per conversion share on 24 September 2025 due to the payment of dividend. As at the end of 2021, the Company had used all net proceeds for working capital and general corporate purposes, consistent with the use of proceeds disclosed in the announcement of the Company dated 27 May 2021, approximately US$95 million was used for repayment of bank loans and approximately US$151 million was used for repayment of the US$ floating rate notes issued in 2018. On 15 June 2024, the Company received a notice of exercise of the put option amounting to US$249,100,000 and redeemed and cancelled the relevant convertible bonds for a consideration equivalent to 106.15% of their principal amount according to the terms. On 8 July 2025, as a result of the exercise of the conversion rights by the holders of the Convertible Bonds, an aggregate principal amount of US$500,000, representing approximately 0.2% of the initial aggregate principal amount of the Convertible Bonds, was converted at the conversion price of HK$6.70 per share and cancelled in accordance with the conditions, resulting in a total number of 579,208 shares being issued and credited as fully paid. On 2 June 2026, as a result of the exercise of the conversion rights by the holders of the Convertible Bonds, an aggregate principal amount of US$400,000, representing approximately 0.16% of the initial aggregate principal amount of the Convertible Bonds, was converted at the conversion price of HK$6.48 per share and cancelled in accordance with the conditions, resulting in a total number of 479,098 shares being issued and credited as fully paid. As at 30 June 2026, there was no outstanding principal amount in respect of such convertible bonds. The above convertible bonds were issued at 100.00% of the principal amount of the bonds as the issue price, and were issued in registered form and in denominations US$200,000 each and integral multiples of US$1,000 in excess thereof. The proceeds from the bond issue can provide the Company with additional funding at lower cost to repay its existing debts and optimize its financing structure, to further strengthen the working capital for the Company, as well as potentially enhance the equity base of the Company. For the principal terms and other details of the abovementioned convertible bonds, please refer to the relevant announcements of the Company dated 27 May 2021, 15 June 2021, 16 June 2021, 24 June 2021, 24 June 2022, 28 October 2022, 20 June 2023, 22 January 2024, 17 June 2024, 7 July 2024, 3 October 2024, 25 April 2025, 16 September 2025 and 5 June 2026. During the reporting period, there was no adjustment to the conversion price of the convertible bonds. As of 30 June 2026, the convertible bonds issued in June 2021 had been fully redeemed or converted, and there were no other convertible bonds issued and outstanding.
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Far East Horizon Limited ·2026 Interim Report 68 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 5. CAPITAL MANAGEMENT The primary objective of the Group ’s capital management activities is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value. In the first half of 2026, no change was made to the objectives, policies or processes for managing capital. 5.1 Gearing ratio The Group monitors its capital by gearing ratio. The following table sets forth the gearing ratios as of the dates indicated: 30 June 2026 31 December 2025 RMB’000 RMB’000 Total assets (A) 373,223,828 370,961,369 Total liabilities (B) 312,106,211 310,667,725 Total equity 61,117,617 60,293,644 Gearing ratio (C=B/A) 83.62% 83.75% In the first half of 2026, the Group made full use of capital leverage for its operations to keep the Group ’s gearing ratio relatively high while at the same time closely managed the Group ’s gearing ratio to avoid potential liquidity risk. As at 30 June 2026, the Group ’s gearing ratio was 83.62%.
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Integrating global resources and promoting industry development 69INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 5.2 Ratio of Assets at Risk to Equity According to Article 27 of the Interim Measures for the Supervision and Management of Financial Leasing Companies issued by the China Banking and Insurance Regulatory Commission in May 2020, the total assets at risk of a financial leasing company must not exceed 8 times of the net assets. As at 30 June 2026, the ratios of total assets at risk to net assets of International Far Eastern Financial Leasing Co., Ltd., Far Eastern Horizon (Tianjin) Financial Leasing Co., Ltd., Far Eastern Horizon Financial Leasing Co., Ltd., Far East Horizon Financial Leasing (Guangdong) Co., Ltd. and Far East Horizon Inclusive Financial Leasing (Tianjin) Co., Limited were 3.94, 5.31, 6.11, 5.15 and 3.55, respectively, which were in compliance with the ratio of assets at risk to equity requirements of the measures. The Group will ensure that all domestic finance leasing operations entities will continue to meet the above regulatory requirements through allocation of internal resources. The following table sets forth the ratio of assets at risk to equity as of the dates indicated: International Far Eastern Financial Leasing Co., Ltd. (ʮ̡ ) 30 June 2026 31 December 2025 RMB’000 RMB’000 Total assets 198,751,544 200,493,810 Less: cash 12,268,267 13,747,162 Total assets at risk 186,483,277 186,746,648 Equity 47,292,105 49,210,448 Ratio of assets at risk to equity 3.94 3.79
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Far East Horizon Limited ·2026 Interim Report 70 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS Far Eastern Horizon (Tianjin) Financial Leasing Co., Ltd. (ڦ( ݵ)ʮ̡ ) 30 June 2026 31 December 2025 RMB’000 RMB’000 Total assets 73,041,782 73,500,818 Less: cash 4,287,010 6,870,580 Total assets at risk 68,754,772 66,630,238 Equity 12,941,023 16,913,547 Ratio of assets at risk to equity 5.31 3.94 Far Eastern Horizon Financial Leasing Co., Ltd. (ʮ̡ ) 30 June 2026 31 December 2025 RMB’000 RMB’000 Total assets 26,609,606 17,906,419 Less: cash 1,030,074 42,452 Total assets at risk 25,579,532 17,863,967 Equity 4,186,193 3,194,889 Ratio of assets at risk to equity 6.11 5.59
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Integrating global resources and promoting industry development 71INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS Far East Horizon Financial Leasing (Guangdong) Co., Ltd. (ፄ༟ॡ༣ (؇)ʮ̡ ) 30 June 2026 31 December 2025 RMB’000 RMB’000 Total assets 25,603,069 23,998,562 Less: cash 558,213 684,870 Total assets at risk 25,044,856 23,313,692 Equity 4,859,774 4,529,645 Ratio of assets at risk to equity 5.15 5.15 Far East Horizon Inclusive Financial Leasing (Tianjin) Co., Limited (౷ፄ༟ॡ༣ (ݵ)ʮ̡ ) 30 June 2026 31 December 2025 RMB’000 RMB’000 Total assets 11,643,743 11,110,285 Less: cash 387,641 1,072,048 Total assets at risk 11,256,102 10,038,237 Equity 3,173,338 2,982,653 Ratio of assets at risk to equity 3.55 3.37 6. CAPITAL EXPENDITURES The Group ’s capital expenditure was RMB1,234,305,000 as at 30 June 2026. Among which, investment in joint ventures/ associates was RMB165,295,000 and capital expenditure in the equipment operation segment was RMB961,682,000, which was primarily used for various business development initiatives of the Group and asset optimization and renewal of Horizon Construction Development.
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Far East Horizon Limited ·2026 Interim Report 72 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 7. RISK MANAGEMENT 7.1 Credit Risk The Company upheld asset safety as its fundamental bottom line, and adopted a comprehensive, prudent, proactive and forward-looking approach to enhance risk governance, thereby bolstering its governance quality and capabilities. The Company remained steadfast in its founding mission of serving the real economy with its financial services by taking the initiative to adapt to environmental shifts, optimizing its asset structure, pivoting industry allocation towards high- end and emerging sectors, strengthening regional presence in robust and dynamic markets, and upgrading its customer portfolio towards high-caliber and growth-oriented enterprises, thereby ensuring steady and concrete progress in its high- quality development. Concurrently, the Company maintained a disciplined assessment framework combining quantitative and qualitative approaches in evaluating group customers, and raised its standards of standardization, scientific rigor, and regulatory compliance, bringing its customer evaluation and risk management to a new level. Adhering to the philosophy that compliance mitigates risk and creates value, the Company actively adapted to the new landscape of financial regulation by effectively internalizing external regulatory requirements. Demonstrating strict professional ethics, the Company firmly defended the baseline of compliance and regulatory red lines. Furthermore, the Company remained committed to full- scale technological empowerment, building a digitalized, intelligent, and agile middle-office platform, so as to continuously enhance precision in risk management and operational efficiency. In the first half of the year, despite a challenging operating environment, the Company advanced its business against the headwinds and delivered solid results. Risk prevention and control also yielded effective outcomes with core risk indicators remaining at relatively low levels in the industry, while asset quality remained stable with positive momentum. I. Comprehensive, prudent, scientific, proactive and forward-looking risk governance The Company regarded asset safety as the fundamental lifeline of its survival and development. It remained firmly committed to a safety-first philosophy in its business development. All development plans were built upon a solid foundation of asset safety, and business development was strictly controlled within the boundaries of risk prevention and control capabilities. By striking a scientific balance between risks and returns, the Company drove long-term value creation and sustainable growth supported by sound and resilient asset quality. Adhering to the principle of “full-process, all-round, multi-dimensional and uninterrupted ” in risk control, the Company continued to improve its risk governance structure and carry out risk management efforts with a comprehensive, prudent, scientific, proactive and forward-looking management philosophy, thereby effectively safeguarding high-quality business development with high standards of safety. Continuously improving the comprehensive risk management system. The Company continued to improve its comprehensive risk management framework by continuously optimizing the 360-degree view and risk control mechanism that encompasses all employees, all segments, all products, all processes and all cycles. By adopting a tiered, classified approach spanning horizontally and vertically across the organization, the Company established a three-dimensional, matrix-style and professional risk management grid characterized by “horizontal integration and vertical specialization ”. Through regular, holistic reviews of risk control practices and systematic enhancement of management capabilities, the Company achieved full coverage of risk prevention and control with no gaps, blind spots, or omissions of material risks. In the first half of the year, the Company operated and conducted business with a “customer-centric ” approach and improved its management with a “front-office-centric ” approach, expanding the scope and enriching the substance of risk management. The functions, responsibilities and roles of the front, middle and back offices were further rationalized, and coordination and communication mechanisms were further improved.
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Integrating global resources and promoting industry development 73INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS Continuously and prudently building a strong defense line for risk management. The Company remained committed to a philosophy of steady business development and a prudent risk appetite, ensuring all business operations were always conducted on the premise of compliance. It struck a comprehensive balance between risks and returns in determining its annual performance targets and departmental performance indicators. By applying bottom- line thinking and extreme-scenario analysis, the Company examined every aspect of its operations and management and developed robust contingency plans to ensure preparedness for potential emergencies. Within a reasonably existing asset size, the Company promoted high-quality development by enhancing its asset portfolio across industries, regions and customers towards a more advanced, resilient and optimized structure. It reinforced four lines of defense covering pre-approval, in-process approval, post-approval review and internal audit and control. The Company adhered to professional approval processes that were free from administrative interference, and strengthened quality control by fostering objective, independent, and accountable credit approval personnel who strictly adhered to high standards of professional integrity to ensure all business activities were conducted under conditions where risks were identifiable and controllable. In the first half of the year, the Company further refined the procedures and policies in relation to customer list, credit rating and transaction structuring. It also improved the vertical division of responsibilities in the review process, resulting in a steady enhancement of its risk management capabilities. Continuously upgrading scientific management methods and tools. Adhering to comprehensive and compliant data collection, the Company broke down information silos and provided reliable data source for risk analysis. Drawing upon proven domestic and international practices, the Company had established a multi-tiered risk monitoring indicator system covering multiple dimensions such as corporate characteristics, operational dynamics, regulatory records, external investments and public reputation. At the same time, the Company continued to upgrade its approach to move beyond the limitations of traditional risk control that relied on subjective experience-based judgment, enabling multi-dimensional quantitative analysis of assessment subjects. It widely applied credit assessment models and stress testing to calculate probability of default and loss given default. Risk assessment had thus shifted from an “experience-driven ” approach to a “data-driven ” approach, significantly enhancing the scientific rigor of decision- making. In addition, leveraging AI and big data technologies, the Company had built an automated risk management platform that supported rational classification, dynamic adjustment and results sharing. Digital tools were increasingly replacing manual processes, reducing human errors while enabling coordinated and transparent management between headquarters and branch offices. In the first half of the year, the Company optimized its customer rating model by fully integrating expert experience with quantitative analysis, further enhancing the scientific quality of its decision-making tools.
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Far East Horizon Limited ·2026 Interim Report 74 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS Proactive, front-loaded risk prevention for effective risk control. The Company actively promoted a culture of compliance and strengthened awareness of accountability. By proactively benchmarking against new regulatory requirements, it ensured the internal adaptation of external policies. Internal and external compliance incidents were monitored in a timely manner, accompanied by regular risk control training and awareness campaigns. The Company took a proactive approach to key industries, regions and customers, implementing dynamic and differentiated management strategies. It actively guided the direction of risk control throughout the year, strictly enforcing operational standards for business execution to effectively reduce execution deviations. For high-quality customers, it adopted proactive pre-credit approval to improve the efficiency of credit approval. Risk management for the credit business was brought to the forefront, enabling the credit approval function to play a proactive role in stepping in ahead of market fluctuations and major emergencies. The Company strengthened proactive and preventive risk management across the first and second lines of defense in credit approval, strictly implementing the principles of early detection, early identification, early warning and early resolution. It continued to refine the early warning and monitoring mechanism for risk indicators, integrating monitoring outputs into the entire credit approval process to provide precise guidance for risk analysis and scientific judgment. It deeply promoted a company-wide, collaborative approach to risk management, encouraging all employees to actively participate in risk management. In the first half of the year, the Company further clarified the alignment between middle-back office and front-office personnel at all levels, resulting in smoother front-middle-back office collaboration and more consistent performance indicators, and further enhanced the closed-loop management and personnel coordination across all processes. Adhering to forward-looking analysis for early action. The Company continued to strengthen the guiding role of research in providing forward-looking insights in risk management and enhance macro – and meso-level research and analysis to accurately anticipate systemic and structural development trends across industries, regions and customer groups. This enabled swift responses to external market changes and risk impacts, allowing targeted management and control strategies to be formulated in advance, and risk management tools were improved to achieve early-stage prevention of systemic risks. Through proactive early action and preemptive planning, risks were identified and flagged sooner over time. Leveraging AI tools, the Company could gain timely insights into macroeconomic and industry development, enabling more precise comprehension of industry development trends, regional development strategies and peer benchmarking during the credit approval process, thereby achieving more comprehensive collection and understanding of customer information. The Company also made more efficient use of customers ’ historical credit data for risk analysis, which not only improved operational efficiency but also effectively enhanced credit approval personnel ’s ability to anticipate and assess risks. Professional, forward-looking research thus provided a more effective and scientific basis for risk control decisions.
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Integrating global resources and promoting industry development 75INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS II. Strengthening a balanced, independent, collaborative and efficient risk governance structure The Company continues to enhance its risk-oriented governance structure through both top-down and bottom-up approaches. It continuously strengthens the top-level design of risk management and further refines a risk governance structure characterized by sound organization, reasonable division of responsibilities, clear delineation of authority and responsibility, functional independence, risk checks and balances, and efficient collaboration, thereby continuously consolidating the governance foundation for risk prevention and control. The Board, as the highest decision-making body, is responsible for setting the strategic direction of operations and management, establishing the Company ’s risk culture and risk appetite, and ensuring close alignment between risk management and strategic objectives. Senior management is responsible for implementing the Board ’s risk management decisions and ensuring the implementation and execution of strategic initiatives. The Company has established mechanisms featuring clear division of responsibilities, mutual coordination and effective checks and balances across departments. Implementation progress is reported to the Board on a regular basis. The independence and professional decision-making capabilities of external directors are fully safeguarded. The Risk Management Committee leads the professional review of resolutions, with committee members comprising management and staff from relevant front, middle and back office functions. The Risk Management Department is responsible for the implementation of risk policies and daily risk management and operations. The Audit Department is directly accountable to and reports to the Board, and operates independently from both business and risk control functions. It conducts independent audits and effective oversight of the compliance of business operations and the effectiveness of the risk management system, and issues special reports accordingly. In the first half of the year, the Company dynamically updated the composition of the Risk Management Committee to ensure objective, professional and independent reviews. Senior and middle management from business operations and functional management held regular meetings to discuss governance-related issues and made improvements accordingly. III. Enhancing asset allocation towards an advanced, resilient and optimized structure The Company remained committed to its original mission of serving the real economy through financial services, integrating global resources to promote industry development and serve urban development. While maintaining a stable business size overall, the Company placed greater emphasis on structural adjustment. By closely monitoring macroeconomic conditions, industrial development trends and regional development dynamics, the Company dynamically adapted to local contexts and changing market conditions to continuously adjust the flow of incremental capital and constantly optimize the structure of existing assets. The Company was committed to advancing its industry layout towards high-value sectors and new growth, directing its regional layout towards dynamic and robust markets, and orienting its customer selection towards high-quality and high-tier segments, making the Company ’s development deeply integrated and aligned with national industrial policies and regional development strategies. Through scientific planning, the Company achieved appropriate asset diversification and a reasonably balanced asset portfolio, laying a solid and reliable foundation for high-quality development. Industry layout towards high-value sectors and new growth. In alignment with national development strategies and industrial policy directives, the Company focused on competitive and distinctive industries, directing capital towards high-end areas and new quality segments within the real economy. The Company was committed to advancing the “Five Key Areas of Finance ”: technology finance, green finance, inclusive finance, pension finance and digital finance. It actively supported the “Two New ” initiatives, namely large-scale equipment upgrades and consumer goods trade-in programs, by extending its reach into new auxiliary equipment and consumer goods segments. It fully supported the “Two Priority Areas ”, namely the implementation of major national strategies and the development of security capacity in key areas, by continuously increasing financial support for the development of major infrastructure projects such as water conservancy, railways, highways, airports, and ports. It also closely monitored critical areas such as energy security, food security and the stability of supply chains and industrial chains, ensuring the funding needs of key projects were secured.
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Far East Horizon Limited ·2026 Interim Report 76 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS The Company strove to empower the development of new quality productive forces and the building of a modern industrial system, with a focus on supporting new infrastructure development and the growth of advanced manufacturing sectors, including new energy, new materials, next-generation information technology, bio-medicine, integrated circuits, and high-end equipment, to facilitate the transformation and upgrading of the manufacturing sector towards high-end, intelligent and green development. The Company actively explored consumer market potential and continued to strengthen support for sectors such as essential consumption and culture & tourism. It also continued to support the quality improvement and upgrading of domestic demand-oriented and livelihood-oriented fundamental sectors, including healthcare, education, public transportation, and utilities such as water, electricity, gas and heating. In planning its industry layout, the Company adhered to the principle of exploring prudently while controlling risks. While investing in sectors characterized by low cyclicality, stable growth and sound asset quality, the Company also explored investment opportunities in emerging or future industries with clear development pathways and relatively high commercial viability, such as AI, embodied intelligence and the low-altitude economy. Through a diversified product mix comprising equity investment, equity-debt linkage and industrial funds, the Company supported the steady development of new industries, business models and operating patterns in China, while maintaining robust risk controls and continuously cultivating new growth drivers for business development. Regional layout towards robust and dynamic markets. Deeply aligning with the national strategy for coordinated regional development, the Company devoted its full efforts to supporting the development layouts of regions with high economic vitality and strong development capacity, including the coordinated development of the Beijing-Tianjin-Hebei region, the development of the Guangdong-Hong Kong-Macao Greater Bay Area, the integrated development of the Yangtze River Delta, the development of the Chengdu-Chongqing economic circle, the rise of the central regions such as the city clusters along the middle reaches of the Yangtze River, the comprehensive revitalization of Northeast China, and the large-scale development of Western China, thus contributing to the flow of financial resources towards highly vibrant and economically powerful regions. The Company continued to refine its city-tier assessment model, taking local development prospects and economic benefits as core dimensions to carry out hierarchical and classified management of economic development capabilities and market vitality across regions. It prioritized customer acquisition and business cooperation in high-tier, high-capacity core cities. Embracing the strategy of concentrating on core regions and expanding into neighboring markets, the Company focused on key national economic belts and core cities and gradually expanded into second – and third-tier cities with strong growth momentum, promising development potential and relatively high asset quality, alongside quality asset allocation along river basins and coastal regions. Taking full account of the disparity among different regions in terms of resource endowments, industrial strengths and economic development, the Company implemented a differentiated “city-specific ” business cooperation model to precisely align financial services with local development needs. At the same time, it steadily explored cooperation pathways in key node cities along the Belt and Road Initiative and the RCEP framework, continuously expanding the breadth and depth of its regional asset deployment, resulting in a more reasonable and balanced geographic distribution of assets. Customer portfolio towards high-quality and high-tier segments. Adhering to the “customer-centric ” business philosophy, the Company took customer development as the core driver of asset allocation and made sustained efforts to identify, develop, manage, and improve the quality of active customers. By steering its customer portfolio towards high-quality and high-tier segments, the Company targeted active and high-quality customers with strong growth potential. It stepped up its efforts to support quality customers who were closely aligned with market demand, deeply committed to their core businesses, well-governed, highly resilient to economic cycles, endowed with core competitive advantages and brand influence, robust and ample operating cash flows, and reasonable and manageable debt levels and debt structures. The Company strengthened its efforts in customer engagement and targeted development. It carried out targeted customer development in alignment with the development trajectories of national industrial clusters, regional pillar industries and distinctive industries, adhering to the principle of region-specific and locally-tailored strategies. It extended its reach by embedding itself into customers ’ industrial ecosystems and established a refined list-based customer management system to accurately identify the needs of high-quality customers, thereby enabling the Company to deliver precise marketing and efficient services under the premise of keeping risks fully under control across the entire process.
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Integrating global resources and promoting industry development 77INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS Acting on the “Two Services ” philosophy of “serving enterprises and serving entrepreneurs ” throughout the full lifecycle, the Company deeply addressed the comprehensive needs of enterprises in production, operations, transformation and upgrading, as well as the needs of entrepreneurs in family development. It expanded the scope of service through a diversified product portfolio and enhanced customer value creation capabilities via integrated service offerings, resulting in gradually increasing customer loyalty and more solid, substantive business partnerships. The development of a high-quality and high-tier customer base provided the Company with a strong foundation for its high-quality development. Dynamic limit adjustment in response to business development. The Company had established and refined a limit management system across three key dimensions covering industry, region and customer. It integrated limit management throughout the entire process of business operations and asset allocation, thereby managing risk exposure at the source for a single dimension and single entity. In response to macroeconomic conditions, industrial shifts, regional development and customer quality, the Company dynamically improved its risk control strategies and kept them under constant review and adjustment to ensure asset allocation in line with shifting market conditions. The Company continued to refine the assessment and evaluation mechanism that aligned with its risk appetite and strengthen the role of risk appetite as both a guide and a constraint in business decisions and resource allocation. Through a scientific assessment mechanism, the Company directed capital towards more optimal uses, improving the efficiency of financial resource allocation and capital utilization. By applying multi-dimensional limit management, dynamic strategy adjustments and scientific assessment guidance, the Company effectively mitigated concentration risk and achieved appropriate and reasonable diversification of assets across industries, regions and customer bases, resulting in a more advanced, resilient, optimized and high-quality asset portfolio. IV. Improving levels of “standardization, scientific rigor and regulation ” through professional review in both quantitative and qualitative approach The Company always adheres to maintaining expert review instead of administrative review. In the process of review, the Company focuses on quantitative analysis and draws on the qualitative assessment conducted based on expert experience, so as to ensure precise conclusion for group customer review and effective preventive measures. Quantitative analysis – Revealing true operation status of customers through data analysis. The Company focused on the comprehensive collection of the quantitative data of core entities of group customers. It comprehensively collected the consolidated statements of the group, as well as the financial statements of parent company and different core subsidiaries, and concurrently gathered core quantitative indicators such as asset scale, operating profit, cash flow of investment and financing and transaction statement, with focus on data of core operating entities, entities with huge investment and financing and entities with frequent related party transactions, outlining the full picture of core financial data of the group. The Company established risk evaluation system for group customer by using comprehensive quantitative data. Furthermore, the Company optimized customer financial and operational indicator analysis, debt structure and investment return analysis, as well as quantitative estimation on operating cash flows, credit limit control and other aspects, thereby gaining precise understanding of the operating capability, financial strength, solvency and overall credit lines of the customer. It conducted quantitative analysis on customers ’ profitability, cash flow stability and asset turnover ratio, as well as the alignment between major investment and financing ability, and comprehensively assessed the overall solvency and financial capacity of the group. The Company implemented the comprehensive quantitative control system for credit limit. In addition, the Company established the tiered quantitative limit rules for overall credit of the group and sub-limit credit of the subsidiary, and set the red lines on credit grant for different operating entities. Credit concentration risk is limited by quantification, while excess credit grant is prohibited by rigid data management.
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Far East Horizon Limited ·2026 Interim Report 78 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS Qualitative assessment – Identifying deep-rooted potential risks exposed to clients in a multi-dimensional, crossing approach. The Company conducted qualitative assessment based on non-financial information regarding industry, equity, governance, performance and other aspects. Through multi-channel information cross checking and thorough identification of actual risk, the Company discovered the root of potential risks beyond operation, governance and connected transaction of the group. It comprehensively established verification system on qualitative information of clients. Utilizing the physical outlet resources of the Company across the country, the Company jointly conducted multi-dimensional cross verification with local government, financial institution partners, upstream and downstream enterprises, industry peers and internal staff, and inspected the operating history, performance record, tax compliance, expertise of management team and other aspects of the entity in all-rounded approach, so as to reveal the actual operation and credit quality of the client. Taking equity ownership, decision-making procedure, personnel appointment and fund collection as the assessment basis, the Company distinguished strong and weak affiliated entities, and defined the complete scope of assessment. It precisely identified hidden related parties, unfair affiliated fund appropriation, transfer of benefits and other misconduct. Centering on substantial risks exposed to group customers such as common governance defects, dispersed ownership, blind diversification and expansion, mutual guarantee, short-term loan for long-term investment and multi-lender credit granting, and drawing on the experience of industry experts, the Company meticulously analyzed to thoroughly understand risk nature, and accurately identified potential operating and liquidity risks. Through integration of quantitative and qualitative analysis and leveraging expert experience, the Company strengthened the foundation of professional review. By improving the level of standardization, scientific rigor and regulation in every single process, the credit evaluation and risk management of the Company had stepped forward to a new stage. Standardization – Standardizing the operating mode for full process of credit review of group customers. Centering on the entire chain of credit grant, assessment and risk prevention for group customers, the Company formulated the unified operational standard, which standardized the operational process of data collection, due diligence, credit limit management and post-leasing monitor, realizing standardized practice, scope and standard for risk management within the Group. In addition, the Company standardized the due diligence standard for credit grant, formulated the standard list for date collection in group evaluation and the data collection scope of consolidated statement, individual statement, equity structure and related party, established standards for due diligence that “focusing on substance over form ”, and maintained balance between due diligence level and cost efficiency, forming replicable, executable standardized operational rules for due diligence works on group customers. The Company standardized the operational rules for group customer review group, established the standardized review mechanism for review led by industry experts, correspondence for experts from different sectors and multi-domain joint review for major projects, clarified the review personnel allocation, commenting procedure and discussion procedure for the Group’s projects at different complexity level, and improved the review operational procedures for group customers across different sectors. Moreover, the Company unified the standard for implementation of credit risk management, standardized the requirements for setting risk control measures on pledges and guarantees, and regulated the coverage period of guarantee measure and the standard risk mitigation effectiveness evaluation. The Company standardized the post-loan tracking, risk inspection and case review procedures, clarified the monitor frequency, inspection level and close-loop requirement for review, and formulated standard risk control operational manual for the entire process. Furthermore, the Company standardized the management criterion of credit limit system, and established the dual credit limit management system with central control at group level and subordinated control at subsidiary level.
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Integrating global resources and promoting industry development 79INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS Scientific rigor – Enhancing risk assessment accuracy through professional system and multi-dimensional tools. With scientific support from industry expertise, integrated quantitative and qualitative model, online and offline inspection network and digital system, the Company established the digital, intelligent credit risk control system for group customers featuring hierarchical grading, multi-dimensional verification and dynamic prediction, thus enhancing accuracy of risk identification and mitigation. Based on management needs, the Company continuously improved risk attribute classification and labelling. It optimized risk data management, and continuously improved data quality. Besides, the Company established comprehensive expert pool for professional industry review. Leveraging the industry expertise earned over the years and the accurate trend judgment, the Company constantly optimized its credit evaluation model and assessment system. It had developed scientific judgment logic that integrated quantitative and qualitative analysis. By integrating quantitative financial prediction and quantitative credit limit control with qualitative analysis such as equity management, related party transaction and compliance performance, a dual scientific analysis framework of “quantitative analysis + qualitative assessment ”, with objective data as its basis and support by expert experience, had been established, aiming to thoroughly understand the operational mode and risk nature. With the application of digital system, the Company achieved scientifically empowered credit management. By automatically completing dynamic credit limit estimation, real-time enquiry, automatic alert and over-limit interception through information system, as well as replacing manual offline ledger with digital tool, the Company realized intelligent dynamic control and look-through management on overall credit grant and sub-limit of the Group, improving the efficiency and accuracy of risk management. The Company continued to develop and optimize real-time scientific monitor system for risk indicators, and strived for perfection in timeliness, effectiveness and sensitivity. In respect of monitor result handling and application, the Company aimed to further improve efficiency. Regulation – Strengthening long-term defenses for asset security of group clients through closed-loop management. The Company optimized the closed-loop rules and mechanisms for the whole credit granting process of the Group regarding accountability and constraints, risk hedging and subsequent review, regulated the risk control in respect of credit approval, assessment, granting and post-loan management, and established the regulated lines of defense for asset security featured with clear responsibility, closed-loop procedure and controllable risk. By regulating the selection mechanism for front-end customer onboarding, the Company standardized the customer onboarding criterion at source. Moreover, the Company rigorously implemented the application of negative list and cross- verification procedure, clarified the base lines and red lines for customer onboarding, and prohibited credit grant for risky group customers at early stage. It set up the criterion for full process judgment on credit grant evaluation, clarified the requirements for related party identification, substance look-through and comprehensive assessment on solvency, standardized the definition of related scope, risk identification and logic of risk level classification, and regulated decision-making process for assessment. In addition, the Company standardized the mechanism for implementation of credit risk mitigation measures. It specifically regulated hedging methods for classification of various potential risks exposed to the Group, and stipulated strict requirements for the formulation of mitigation measures such as pledges and guarantees. In respect of complicated major projects of the Group, the Company set up “belt and braces ” risk mitigation measures and risk exit route. Taking into account the long-term effectiveness of full leasing cycle risk predication and mitigation measures, the Company regulated the design of risk hedging plans. It regulated post- loan monitor and closed-loop management of risk review, and established working rules for regular risk inspection on group customers and continuous tracking and analysis. Besides, the Company optimized the standardized mechanism for risk case review, which concurrently applied industry risk characteristics, customer analysis method and mitigation instruments in early-stage credit assessment, forming a standardized closed-loop management over “assessment – grant – monitor – review – optimization ”. Through the in-depth integration of quantitative analysis and qualitative analysis, as well as the adoption of the three-in-one approach of “standardization, scientific rigor and regulation ”, every single step in the entire process of credit granting, assessment and risk prevention for group customers was closely correlated and linked with each other. Benefiting from the comprehensive and well-established risk control assessment system, precise identification and mitigation of risks associated with group customers had gradually become a reality, and stepped forward to a new stage. During the first half of the year, the Company recorded no major credit risk events, with asset safety remaining under control.
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Far East Horizon Limited ·2026 Interim Report 80 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS V. Upholding professional ethics to safeguard regulatory red lines and compliance bottom lines Through top-down compliance culture promotion and bottom-up enhancement of employees ’ sense of responsibility, the Company imposed clear lines of operational and management responsibilities. The Company upheld professional ethics, and safeguarded the compliance bottom lines and regulatory red lines. Besides, the Company strengthened personnel coordination mechanism, maintained the approach of addressing both symptoms and root- causes, and promoted regular improvement and long-term enhancement in management. Solidify foundation for compliance culture and increase the all-rounded awareness on compliance among all employees. The Company launched multi-dimensional compliance promotion, deeply rooting compliance concept among people. Adhering to the core principle of “compliance would reduce risk and create value ”, the Company proactively embraced financial regulatory development trend, and enhanced the compliance awareness of all employees by conducting regular comprehensive trainings. By adopting diversified measures such as online video compliance courses, offline intensive thematic study sessions and compliance quiz and self-test, the Company organized regular compliance learning and exchange programs for all employees. Meanwhile, the Company introduced self-evaluation and cross-assessment mechanism for employees at different positions, guiding employees to discover compliance weakness in their respective responsible fields, implement rectification for every link, and consciously uphold professional ethics. Through frequent and multi-dimensional promotion, compliance culture had penetrated all business scenarios, with typical non-compliance cases widely spread among employees, enabling internalization and practical implementation of compliance principles. Insisting on maintaining value-orientated operation, the Company focused on the main line of compliance operation development. Upholding the concept of “compliance brings security, violation brings risk ”, the Company treated compliance operation as top priority for stable business development. It implemented regulatory requirements throughout its daily operation, and prevented operational risk and controlled operational hazard through culture development. Furthermore, the Company standardized the understanding of compliance value using top-down approach, and moved away from the narrow mindset of “prioritizing business operation over risk management ”. It guided all employees to understand that compliance was not only an absolute regulatory red line but also a key initiative for safeguarding assets and creating long-term business value. The Company also fostered long-term mindset of proactive and voluntary compliance. Refine operational management system and impose clear responsibilities for employees at different levels. The Company imposed clear red lines and bottom lines for operations, and strictly regulated the full process operation. Adhering to the bottom-line thinking, the Company established stringent, standardized operational management system. By closely updating rules based on regulatory policy updates, the Company timely completed internalization of external regulatory rules, and dynamically adjusted and publicly announced the red lines of compliance and the bottom lines of operational conduct for employees. Furthermore, the Company systematically sorted out performance requirements for employees, common non-compliance risks and prohibitive operational requirements. In addition to continuously promoting special compliance and internal control training, the Company had set up rigid management rules stipulating that “there is a law to be followed, the law must be followed, law enforcement must be strict, and violations of the law must be investigated ”. The Company implemented stringent control throughout the entire operation, enhanced execution and supervision, increased the severity of penalties for non-compliance, and clearly stipulated bottom lines of conduct. Besides, the Company enhanced the three lines of defense for risk control, and strengthened the multi-dimensional supervision and balancing network. It continued to strengthen the due diligence before credit granting, evaluation during credit granting and asset inspection after credit granting as three lines of defense, and focused on improving the operational quality of the front-line personnel due diligence at early stage. The Company refined employee responsibilities, working standards and operational procedures at every stage, and implemented the three-level rectification mechanism of self-inspection, cross-checking and internal control inspection. In addition, the Company had established multi-dimensional compliance performance management system, and improved risk profiling of employee behaviors, thus realizing accurate identification and dynamic control of compliance risk. It also strictly fulfilled the check and balance requirements regarding incompatible positions to eliminate blind spots in supervision and management. The Company regularly conducted entire process walkthrough tests, increased inspections over major business and key operating process, and imposed clear responsibilities for front-line operators and management at different levels, thereby ensuring standardized, controllable operation at every stage.
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Integrating global resources and promoting industry development 81INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS Strengthen personnel coordination mechanism and continuously promote long-term governance improvement. The Company implemented strict accountability system across the entire line, targeting on solving root-causes for misconduct. It had established the accountability system applicable for operators, direct managers and department leaders across the entire line, seriously dealt with various risk and non-compliance incidents, and adhered to prohibit “promoting employees despite known misconduct ”. The Company regularly reviewed typical internal and external cases of violations and carried out opposite warning education to encourage all employees to learn from past mistakes and prevent potential risk exposures in advance. The Company strictly implemented the “three-step ” methodology of identifying, analyzing and solving problems. When dealing with problems, the Company adhered to the “three musts ” principle, pursuant to which the Company must analyze the cause of problem clearly, educate the responsible personnel and employees, and take practical preventive measures. The Company investigated the root causes of risks thoroughly, and implemented closed-loop rectification for every link. Through rectification, reverse pressure was applied to promote operational procedure optimization, management efficiency improvement and employee expertise enhancement, realizing separation of investigation, warning and governance. The Company had established long-term mechanism for personnel coordination, enabling continuous management upgrade. It had implemented long-term management and control measures, such as the suspension and restoration of business qualifications, the penalty cards for operational quality and the targeted publication of risk warnings, which closely tied business compliance and operational quality to performance appraisal and cadre selection and appointment, amplifying the guiding effect of personnel binding. The Company regularly conducted management enhancement and specific rectification, established regular self-inspection and rectification mechanism, and continued to upgrade and optimize internal control management system. In addition, the Company optimized the risk tracing review and cross-functional problem discussion system, organized regular training on positive and negative compliance cases, and handled new operational risks in a timely manner. Past experiences in rectification and reflection on risks were incorporated in daily management standards, thereby continuously improving operation standards and overall management capability of all employees. By optimizing the business continuity management system, the Company enhanced operation compliance protection. Besides, it facilitated the establishment of business continuity management system, optimized specific management system, and enhanced system implementation and operation system. The Company comprehensively conducted business impact analysis, refined emergency plan for various unexpected incidents, organized regular practical emergency drills, and strengthened the all-rounded capability of the Company for sustainable operation, thus providing solid foundation for healthy compliance operation. With the synchronized effect arising from the implementation of “shaping mindset through compliance culture, solidifying defense line through operational control, securing effective operation through human resources integration ”, the Company guided all employees in upholding professional standards. It strictly observed regulatory red lines, reinforced the bottom lines of operational conduct, and comprehensively prevented compliance and operational risks, thereby securing orderly, compliant and steady development for various businesses of the Company. VI. Building intelligent mobile digital middle platform fully empowered by technology The Company conducted data management and system upgrade on regular basis, thereby strengthening the foundation for digital risk management. With the application of financial technologies, the Company had established digital, intelligent middle platform for risk management. It applied, developed and modified various mobile devices to break limitations of space and time and unleash productivity. While applying cutting-edge technologies and improving risk predictions, the Company also enhanced information security precautions. Reinforce data foundation and strengthen the Group ’s foundation for risk control digitalization. Taking business system iteration and upgrade as starting point, the Company promoted the in-depth integration of financial technology into the Group ’s operation and management, and focused on building basic capabilities for digitalization. The Company continued to upgrade and enhance its omni data warehouse, integrated and gathered business data from internal and external sources, conducted standardized data management on regular basis, and gradually improved the completeness and accuracy of data, thus providing reliable data support for risk control decision-making. The Company synchronized and standardized data interfaces across all product categories, and eliminated data silos across different business lines. By creating a path for eco-based, scenario-driven development through product line standardization, it provided high flexibility for cross-business collaboration, thus enhancing fundamental support for the integrated digital risk control of the Group.
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Far East Horizon Limited ·2026 Interim Report 82 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS Upgrade intelligent middle platform and establish lifecycle automated risk control system. Attributable to the expansion of data input dimension using multi-channel external data source, the in-depth application of visual and voice biometric technology, as well as the optimization of machine-learning algorithm through business operation scenario iteration, the accuracy of real-time risk alert and standard of intelligent-aided decision-making were effectively enhanced. Adaptable to various business risk control scenarios, the system intelligently integrated the all-rounded risk view for customers, various risk control tools and modules, establishing an integrated online management platform for full business lifecycle covering all customers, entities and products. Hence, a model-driven operation mode featuring automated operation, cloud sharing, closed-loop operation and tiered collaboration was established for intelligent middle platform, which comprehensively enhanced the risk control precision and operational efficiency of the Group. Break limitations and unleash full-scenario potential by making use of mobile devices. Focusing on the full- scenario operational requirements of risk control, the Company facilitated the establishment of mobilized system, and developed lightweight and cross-platform risk control applications tailored for various devices including mobile, tablets and computers. In addition to ordinary real-time online interactions, an ancillary offline operation mode, which completely broke time and space limitations, was created, enabling around-the-clock and full-scenario risk inspection, business assessment and other operations, considerably simplifying frontline operation procedures, and significantly improving the efficiency of implementation of the Group ’s general risk control measures. Integrate cutting-edge technology and enhance risk prediction and security control. On the one hand, the Company continued to explore application scenario for cutting-edge technologies such as big data, block chain, large AI model and ensemble risk control model. By integrating multi-dimensional intelligent data analysis with professional review expertise, the Company enhanced its risk prediction and assessment capabilities, thus realizing front-loading risk identification and proactive control, empowering quality and efficiency enhancement in risk assessment. On the other hand, the Company concurrently established a sound information security defense system, commenced regular application of cutting-edge technologies in risk identification, assessment, monitoring and proactive prevention, built up a lifecycle data protection mechanism for customers, and imposed strict accountability system for data security management. The Company secured stable, long-term and effective operation of digital intelligent risk control platform through reliable technologies and safety barriers. During the first half of the year, the Company recorded no major network and information security incidents.
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Integrating global resources and promoting industry development 83INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 7.2 Interest Rate Risk Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group ’s exposure to the risk of changes in market interest rates relates primarily to the Group ’s interest-bearing bank and other borrowings and lease receivables and other loans. A principal part of the Group ’s management of interest rate risk is to monitor the sensitivity of projected net interest income under varying interest rate scenarios (simulation modelling). The Group aims to continuously monitor the impact of prospective interest rate movements which could reduce future net interest income, while actively using interest rate swaps and other financial instruments to hedge interest rate risk exposure. The distribution of interest rate sensitive assets and liabilities of the Group is as follows: As at 30 June 2026 As at 31 December 2025 RMB’000 RMB’000 Variable interest-earning assets 1,122,255 816,312 Variable interest-bearing liabilities (150,380,522) (145,555,501) Monetary funds and others 26,720,698 31,814,552 Derivative financial instruments 38,534,778 44,703,423 Net exposure (84,002,791) (68,221,214) The table below demonstrates the sensitivity to a reasonably possible change in interest rate, to the Group ’s profit before tax with all other variables held constant. The sensitivity of the profit before tax is the effect of the assumed changes in interest rates (such as the RMB loan market quoted interest rates) on profit before tax, based on the financial assets and financial liabilities held at the end of each reporting period subject to re-pricing within the coming year. Increase/(decrease) in profit before tax of the Group As at 30 June 2026 As at 31 December 2025 RMB’000 RMB’000 Change in basis points +25 basis points (54,188) (76,143) – 25 basis points 54,588 77,543
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Far East Horizon Limited ·2026 Interim Report 84 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 7.3 Foreign Exchange Risk Foreign exchange risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Group ’s exposure to the risk of changes in foreign exchange relates primarily to the operating activities of the Group (when receipt or payment is settled using a currency that is different from the functional currency). The Group conducts its businesses mainly in RMB, with certain transactions denominated in US$, and to a lesser extent, other currencies. The Group ’s exposure to foreign exchange risk mainly arises from its transactions in currencies other than RMB. The Group adopted prudent foreign exchange risk management which hedges risk exposures one by one under comprehensive risk exposure management. The Group proactively hedged against foreign exchange exposure based on the currency and terms by using financial instruments such as foreign exchange forwards and currency swaps. According to relevant statistics, as at 30 June 2026, the Group ’s actual exposure to foreign exchange risk amounted to approximately US$7,554 million, hedges against foreign exchange exposure amounted to approximately US$7,606 million with the hedge ratio (percentage of the aforesaid two items) of approximately 100.68% (approximately 98.87% as at 31 December 2025). The Group ’s actual exposure to foreign exchange risk is limited. The table below demonstrates the effect of reasonable potential changes in exchanges rates of RMB arising from actual exposure to foreign exchange risk, with all other variables held constant, on the Group ’s equity interest. Increase/(decrease) in equity interest of the Group Change in RMB exchange rate As at 30 June 2026 As at 31 December 2025 RMB’000 RMB’000 Effect on the profit before tax +1% (3,524) 6,207 The effect above was based on the assumption that the Group ’s foreign exchange exposures as at the end of each reporting period are kept unchanged and the average percentage of foreign exchange exposure with hedges remained as above so as to calculate the effect of exchange rate change on equity interest.
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Integrating global resources and promoting industry development 85INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 7.4 Liquidity Risk Liquidity risk refers to the risks that the Group will not be able to meet its obligations associated with its financial liabilities that are settled by delivering cash or other financial assets. The Group manages its liquidity risk through daily monitoring with the following objectives: maintaining the stability of the leasing business, projecting cash flows and evaluating the level of current assets, and maintaining an efficient internal fund transfer mechanism to ensure liquidity of the Group. The following table sets forth the Group ’s liquidity-related indicators as of the dates indicated. As at 30 June 2026 As at 31 December 2025 Liquidity coverage ratio (1) 283.19% 271.86% Proportion of short-term liabilities (2) 50.00% 50.43% Liabilities/total credit lines (3) 57.73% 59.76% Notes: (1) Liquidity coverage ratio = (position + collection of lease payments within one month)/rigid payment outflows within one month; (2) Proportion of short-term liabilities = (interest-bearing liabilities due within one year + bills payable due within one year)/(interest-bearing liabilities + bills payable + convertible bonds); (3) Total liabilities/credit lines = (interest-bearing liabilities + bills payable + convertible bonds)/total credit lines.
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Far East Horizon Limited ·2026 Interim Report 86 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS The table below summarizes the maturity profile of the Group ’s financial assets and liabilities based on the contractual undiscounted cash flows. On demand Less than 3 months 3 to 12 months 1 to 5 years Over 5 years Undated Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 As at 30 June 2026 Total financial assets 18,526,545 54,718,082 138,073,166 141,039,520 3,461,277 3,676,772 359,495,362 Total financial liabilities 345,633 36,969,927 119,143,892 151,344,211 5,916,181 – 313,719,844 Net liquidity gap 18,180,912 17,748,155 18,929,274 (10,304,691) (2,454,904) 3,676,772 45,775,518 As at 31 December 2025 Total financial assets 23,706,142 56,201,826 127,055,116 140,120,072 3,265,640 3,666,752 354,015,548 Total financial liabilities 273,255 51,892,883 104,913,994 150,793,282 6,194,976 – 314,068,390 Net liquidity gap 23,432,887 4,308,943 22,141,122 (10,673,210) (2,929,336) 3,666,752 39,947,158 7.5 Operational Risk The Group continuously enhanced the internal control mechanism of various industrial groups and continued to improve the management over HSE major risks. The Group further strengthened the headquarters ’ effectiveness of implementation of policies and professional guidance and management, ensuring that the overall operational process risks were under control. 8. CHARGE ON GROUP ASSETS As at 30 June 2026, the Group had lease receivables of RMB50,497,988,000, long-term receivables of RMB9,086,000, financial assets at fair value through profit or loss of RMB7,221,990,000, cash of RMB10,442,030,000, property, plant and equipment of RMB6,162,436,000 pledged or paid to banks for bank borrowings, and cash of RMB36,285,000 pledged for bank acceptances, letter of credit and etc..
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Integrating global resources and promoting industry development 87INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 9. MATERIAL INVESTMENTS, ACQUISITIONS AND DISPOSALS In the first half of 2026, the number of hospitals controlled by the Group was 25 with the actual number of beds available amounting to approximately 10,000. A nationwide hospital operation network covering Eastern China, Southern China, Northern China, Southwest China, and Northeast China had been formed. The Group continued to adjust its business structure, optimize asset efficiency, and accelerate strategic upgrading and transformation. Under the operation of “One system, One network, One hospital ” and for the operation vision, the Group will include the above hospitals in the unified operation and management model, and under the main theme of discipline development and construction, efforts will be made to increase the core competitiveness of the hospitals and achieve higher income. For further details, please refer to the discussion and analysis in item 14 of this section. In the first half of 2026, the Group operated one non-compulsory school. The Company insisted on a high-quality positioning of school operations, and took the responsibility of cultivating elites for the society. Its high schools have formed a good brand in the local area and are widely recognized by parents. The high school attained excellent results regarding further studies, with an admission rate of over 95% for the top 100 universities in the world, and has helped outstanding students to enter top schools such as Oxford, Cambridge and Ivy League for successive years. In the first half of 2026, the Group did not conduct any material investment as defined under Rule 32(4A) of Appendix D2 of the Listing Rules or any material disposal as defined under Rule 32 (5) of Appendix D2 of the Listing Rules. 10. HUMAN RESOURCES As of 30 June 2026, the Group had 18,717 full-time employees (including 4,861 employees for finance business, among which 2,522 employees were in the inclusive finance business; and 13,856 employees for industrial operation), a decrease of 108 full-time employees as compared to 18,825 (including 4,620 employees for finance business, among which 2,294 employees are in the inclusive finance business; and 14,205 employees for industrial operation) as at the end of 2025. The Group believes it has a high quality work force with specialized industry expertise. As at 30 June 2026, approximately 68.1% of the Group ’s employees had bachelor ’s degrees or above, and approximately 9.3% had master ’s degrees or above.
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Far East Horizon Limited ·2026 Interim Report 88 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 10.1 Incentive Schemes The Group has established effective employee incentive schemes to correlate the remuneration of our employees with their overall performance and contribution to the Company rather than operating results, and has established a merit based remuneration awards system. Employees are promoted not only in terms of position and seniority, but also in terms of professional classification. Our senior employees are reviewed every quarter on the basis of, among other criteria, their performance as business leaders to achieve stipulated performance targets (such as budget targets) and their risk management capabilities on the operational matters under their charge. With a view to promoting the Group to establish and improve the medium-long term stimulation and restriction system for fully motivating the enthusiasm of the management, attracting and retaining excellent management talents, and effectively integrating the interests of Shareholders, the Company and the management to guarantee the long-term, stable and healthy development of the Group, the Board of the Company considered and passed the program of setting up the equity incentive plans (including the share option scheme and restricted share award scheme) in 2014, 2019 and 2024. The Company adopted a share option scheme (the “2014 Share Option Scheme ”) on 7 July 2014. Since the total share options under the 2014 Share Option Scheme had been fully granted, on 5 June 2019, the Company adopted a new share option scheme (the “2019 Share Option Scheme ”) to incentivize and reward the selected participants thereunder. The Company also adopted a restricted share award scheme (the “2014 Restricted Share Award Scheme ”) on 11 June 2014 and made certain amendments to such scheme on 2 June 2016 and 20 March 2019. For details of the 2014 Share Option Scheme and the 2019 Share Option Scheme, please refer to the 2019 annual report of the Company. For details of the 2014 Restricted Share Award Scheme, please refer to the announcements of the Company dated 11 June 2014, 2 June 2016 and 20 March 2019. As all restricted shares and all share options under the 2014 Restricted Share Award Scheme and the 2019 Share Option Scheme have been fully granted, the Company has adopted a new restricted share award scheme (the “2024 Restricted Share Award Scheme ”) on 13 March 2024, and a new share option scheme (the “2024 Share Option Scheme ”) on 5 June 2024. For details of the 2024 Restricted Share Award Scheme, please refer to the announcement of the Company dated 13 March 2024. For details of the 2024 Share Option Scheme, please refer to the announcements of the Company dated 13 March 2024 and 5 June 2024, as well as the circular dated 2 May 2024.
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Integrating global resources and promoting industry development 89INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 10.1.1 2014 Share Option Scheme The purpose of the 2014 Share Option Scheme is to incentivize and reward selected participants (i.e., senior and middle management personnel, as well as other key employees of the Company or any subsidiary of the Company) for their contribution to the Group and to align their interests with that of the Company so as to encourage them to work towards enhancing the value of the Company. The eligibility of the selected participants will be decided by the Board or the administration committee of such scheme, at its respective absolute discretion, as to his contribution to the Company or any of its subsidiaries. The 2014 Share Option Scheme is valid for 10 years from 7 July 2014, the date of its adoption. Therefore, as at 30 June 2026, the remaining life of the 2014 Share Option Scheme was 0 year. The maximum number of new shares in respect of which options may be granted under the 2014 Share Option Scheme shall not exceed 4.00% of the Company ’s issued share capital as at the date of approval of the 2014 Share Option Scheme by the Shareholders, which is 131,696,000 shares, representing 2.73% of the issued share capital of the Company as at the disclosure date of this report. The maximum number of shares which are issued and may be issued upon exercise of all options (including exercised and outstanding options) granted to any selected participant within any 12-month period must not exceed 1% of the issued share capital of the Company from time to time. Any grant of further share options above this limit is subject to certain requirements as stipulated in the Listing Rules and the rules of the 2014 Share Option Scheme. An offer shall be open for acceptance for such period within 14 days inclusive of, and from, the offer date by the selected participant. An offer not accepted within this period shall lapse. An amount of HK$1.00 is payable upon acceptance of the grant of options and such payment shall not be refundable and shall not be deemed to be a part payment of the exercise price under the 2014 Share Option Scheme. The purchase price of HK$1.00 is a nominal consideration. Considering that the selected participants have contributed or will contribute to the Group, the Board is of the view that the consideration of HK$1.00 (instead of any lower or higher amount) to be paid by each selected participant for purchasing each share option is fair and reasonable and the Board considers that such arrangement aligns with the purpose of the 2014 Share Option Scheme where the share options are intended to be granted to the selected participants to reward their contributions to the Group. The exercise period of the share options granted is determinable by the Board or the administration committee and ends on a date which is not later than 10 years from the date of grant of the share options. The exercise price is determined by the Board or the administration committee, and shall not be less than the higher of: (i) the closing price of the shares on the Stock Exchange as stated in the Stock Exchange ’s daily quotations sheet on the date of the offer of the grant of option; (ii) the average closing price of the shares on the Stock Exchange as stated in the Stock Exchange ’s daily quotations sheets for the five trading days immediately preceding the date of the offer of the grant of option; and (iii) the nominal value of the shares as at the date of the offer of the grant of option.
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Far East Horizon Limited ·2026 Interim Report 90 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS During the reporting period, no options were granted under the 2014 Share Option Scheme. A summary of the movements of the outstanding share options under the 2014 Share Option Scheme during the reporting period is as follows: Grantee Date of grant Vesting period (Note 1) Exercise period (Note 2) Exercise price per share HK$ (Notes 3-5) Outstanding as at 1 January 2026 Number of share options Outstanding as at 30 June 2026 Granted (Note 7) Exercised (Note 6) Lapsed Cancelled KONG Fanxing, CEO and executive Director 15 June 2016 15 June 2018 – 15 June 2020 15 June 2018 – 15 June 2026 5.714 3,292,400 – 3,292,400 – – – KONG Fanxing, CEO and executive Director 20 June 2017 20 June 2019 – 20 June 2021 20 June 2019 – 20 June 2027 6.82 3,292,400 – – – – 3,292,400 KONG Fanxing, CEO and executive Director 18 July 2018 18 July 2020 – 18 July 2022 18 July 2020 – 18 July 2028 7.36 3,410,926 – – – – 3,410,926 WANG Mingzhe, CFO and executive Director 15 June 2016 15 June 2018 – 15 June 2020 15 June 2018 – 15 June 2026 5.714 1,053,568 – 1,053,568 – – – WANG Mingzhe, CFO and executive Director 20 June 2017 20 June 2019 – 20 June 2021 20 June 2019 – 20 June 2027 6.82 1,037,106 – – – – 1,037,106 WANG Mingzhe, CFO and executive Director 18 July 2018 18 July 2020 – 18 July 2022 18 July 2020 – 18 July 2028 7.36 1,074,442 – – – – 1,074,442 CAO Jian, Senior Vice President and executive Director 18 July 2018 18 July 2020 – 18 July 2022 18 July 2020 – 18 July 2028 7.36 1,074,442 – 500,000 – – 574,442 SUBTOTAL FOR DIRECTORS 14,235,284 – 4,845,968 – – 9,389,316 Employees 15 June 2016 15 June 2018 – 15 June 2020 15 June 2018 – 15 June 2026 5.714 812,806 – 807,914 4,892 – 0 Employees 20 June 2017 20 June 2019 – 20 June 2021 20 June 2019 – 20 June 2027 6.82 3,245,299 – 688,112 – – 2,557,187 Employees 18 July 2018 18 July 2020 – 18 July 2022 18 July 2020 – 18 July 2028 7.36 5,440,625 – 505,817 – – 4,934,808 Total 23,734,014 – 6,847,811 4,892 – 16,881,311
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Integrating global resources and promoting industry development 91INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS Note 1: Subject to the rules of the 2014 Share Option Scheme, the options granted will be vested to the grantees at the second, third and fourth anniversary of the date of grant at an average amount. Note 2: According to the 2014 Share Option Scheme, the options shall be exercised within the Option Period. “Option Period ” shall mean, in respect of any particular option, a period (which may not be later than 10 years from the offer date of that option) to be determined and notified by the Board or the administration committee to the grantee thereof and, in the absence of such determination, from the offer date to the earlier of (i) the date on which such option lapses; and (ii) 10 years from the offer date of that option. There is no minimum period for which any vested option must be held before it can be exercised and no performance target which need to be achieved by a grantee before the vested options can be exercised. Note 3: The exercise price is not less than the higher of (i) the closing price of HK$5.60 per share on the Stock Exchange as stated in the Stock Exchange ’s daily quotations sheet on 15 June 2016 (i.e. the grant date) and (ii) the average closing price of HK$5.714 per share on the Stock Exchange as stated in the Stock Exchange ’s daily quotations sheets for the five trading days immediately preceding 15 June 2016. The Share does not carry nominal value. The closing price of shares immediately before the date on which the options were granted is HK$5.58 per share. Note 4: The exercise price is not less than the higher of (i) the closing price of HK$6.82 per share on the Stock Exchange as stated in the Stock Exchange ’s daily quotations sheet on 20 June 2017 (i.e. the grant date) and (ii) the average closing price of HK$6.714 per share on the Stock Exchange as stated in the Stock Exchange ’s daily quotations sheets for the five trading days immediately preceding 20 June 2017. The Share does not carry nominal value. The closing price of shares immediately before the date on which the options were granted is HK$6.80 per share. Note 5: The exercise price is not less than the higher of (i) the closing price of HK$7.36 per share on the Stock Exchange as stated in the Stock Exchange ’s daily quotations sheet on 18 July 2018 (i.e. the grant date) and (ii) the average closing price of HK$7.032 per share on the Stock Exchange as stated in the Stock Exchange ’s daily quotations sheets for the five trading days immediately preceding 18 July 2018. The Share does not carry nominal value. The closing price of shares immediately before the date on which the options were granted is HK$7.18 per share. Note 6: In respect of the exercise of options by Mr. KONG Fanxing during the reporting period, the weighted average closing price of shares immediately before the date on which the options were exercised is HK$7.8901. In respect of the exercise of options by Mr. WANG Mingzhe during the reporting period, the weighted average closing price of shares immediately before the date on which the options were exercised is HK$7.76. In respect of the exercise of options by Mr. CAO Jian during the reporting period, the weighted average closing price of shares immediately before the date on which the options were exercised is HK$7.84. In respect of the exercise of options by the employees during the reporting period, the weighted average closing price of shares immediately before the dates on which the options were exercised is HK$7.5567. Note 7: No option is available for grant under the 2014 Share Option Scheme as at the beginning and the end of the reporting period. During the reporting period, the Company did not grant any share options under all share option schemes (including the 2014 Share Option Scheme, the 2019 Share Option Scheme and the 2024 Share Option Scheme). Therefore, the number of shares that may be issued in respect of the share options granted under all the share option schemes of the Company during the reporting period divided by the weighted average number of shares in issue for the reporting period as required under Rule 17.07(3) of the Listing Rules is not applicable.
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Far East Horizon Limited ·2026 Interim Report 92 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 10.1.2 2019 Share Option Scheme The purpose of the 2019 Share Option Scheme is to incentivize and reward selected participants (i.e., senior and middle management personnel, as well as other key employees of the Company or any subsidiary of the Company) for their contribution to the Group and to align their interests with that of the Company so as to encourage them to work towards enhancing the value of the Company. The eligibility of the selected participants will be decided by the Board or the administration committee of such scheme, at its respective absolute discretion, as to his contribution to the Company or any of its subsidiaries. The 2019 Share Option Scheme is valid for 10 years from 5 June 2019, the date of its adoption. Therefore, as at 30 June 2026, the remaining life of the 2019 Share Option Scheme was approximately 3 years. The maximum number of new shares in respect of which options may be granted under the 2019 Share Option Scheme shall not exceed 4.00% of the Company ’s issued share capital as at the date of approval of the 2019 Share Option Scheme by the Shareholders, which is 158,167,904 shares, representing 3.28% of the issued share capital of the Company as at the disclosure date of this report. The maximum number of shares which are issued and may be issued upon exercise of all options (including exercised and outstanding options) granted to any selected participant within any 12-month period must not exceed 1.00% of the issued share capital of the Company from time to time. Any grant of further share options above this limit is subject to certain requirements as stipulated in the Listing Rules and the rules of the 2019 Share Option Scheme. An offer shall be open for acceptance for such period within 14 days inclusive of, and from, the offer date by the selected participant. An offer not accepted within this period shall lapse. An amount of HK$1.00 is payable upon acceptance of the grant of options and such payment shall not be refundable and shall not be deemed to be a part payment of the exercise price under the 2019 Share Option Scheme. The purchase price of HK$1.00 is a nominal consideration. Considering that the selected participants have contributed or will contribute to the Group, the Board is of the view that the consideration of HK$1.00 (instead of any lower or higher amount) to be paid by each selected participant for purchasing each share option is fair and reasonable and the Board considers that such arrangement aligns with the purpose of the 2019 Share Option Scheme where the share options are intended to be granted to the selected participants to reward their contributions to the Group. The exercise period of the share options granted is determinable by the Board or the administration committee and ends on a date which is not later than 10 years from the date of grant of the share options. The exercise price is determined by the Board or the administration committee, and shall not be less than the higher of: (i) the closing price of the shares on the Stock Exchange as stated in the Stock Exchange ’s daily quotations sheet on the date of the offer of the grant of option; and (ii) the average closing price of the shares on the Stock Exchange as stated in the Stock Exchange ’s daily quotations sheets for the five trading days immediately preceding the date of the offer of the grant of option.
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Integrating global resources and promoting industry development 93INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS During the reporting period, no options were granted under the 2019 Share Option Scheme. A summary of the movements of the outstanding share options under the 2019 Share Option Scheme during the reporting period is as follows: Grantee Date of grant Vesting period (Note 1) Exercise period (Note 2) Exercise price per share HK$ (Notes 3-7) Outstanding as at 1 January 2026 Number of share options Outstanding as at 30 June 2026 Granted (Note 9) Exercised (Note 8) Lapsed Cancelled KONG Fanxing, CEO and executive Director 19 July 2019 19 July 2020 – 19 July 2022 19 July 2020 – 19 July 2029 7.618 3,163,358 – – – – 3,163,358 KONG Fanxing, CEO and executive Director 23 July 2020 23 July 2021 – 23 July 2023 23 July 2021 – 23 July 2030 6.70 3,748,579 – – – – 3,748,579 KONG Fanxing, CEO and executive Director 26 July 2021 26 July 2022 – 26 July 2024 26 July 2022 – 26 July 2031 8.40 4,164,656 – – – – 4,164,656 KONG Fanxing, CEO and executive Director 27 July 2022 27 July 2023 – 27 July 2025 27 July 2023 – 27 July 2032 6.378 4,315,460 – – – – 4,315,460 KONG Fanxing, CEO and executive Director 10 August 2023 10 August 2024 – 10 August 2026 10 August 2024 – 10 August 2033 5.58 4,317,610 – – – – 4,317,610 WANG Mingzhe, CFO and executive Director 19 July 2019 19 July 2020 – 19 July 2022 19 July 2020 – 19 July 2029 7.618 996,458 – – – – 996,458 WANG Mingzhe, CFO and executive Director 23 July 2020 23 July 2021 – 23 July 2023 23 July 2021 – 23 July 2030 6.70 1,614,388 – – – – 1,614,388 WANG Mingzhe, CFO and executive Director 26 July 2021 26 July 2022 – 26 July 2024 26 July 2022 – 26 July 2031 8.40 2,357,201 – – – – 2,357,201 WANG Mingzhe, CFO and executive Director 27 July 2022 27 July 2023 – 27 July 2025 27 July 2023 – 27 July 2032 6.378 2,258,366 – 2,258,366 – – – WANG Mingzhe, CFO and executive Director 10 August 2023 10 August 2024 – 10 August 2026 10 August 2024 – 10 August 2033 5.58 2,247,493 – 1,498,328 – – 749,165
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Far East Horizon Limited ·2026 Interim Report 94 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS Grantee Date of grant Vesting period (Note 1) Exercise period (Note 2) Exercise price per share HK$ (Notes 3-7) Outstanding as at 1 January 2026 Number of share options Outstanding as at 30 June 2026 Granted (Note 9) Exercised (Note 8) Lapsed Cancelled CAO Jian, Senior Vice President and executive Director 19 July 2019 19 July 2020 – 19 July 2022 19 July 2020 – 19 July 2029 7.618 996,458 – 574,442 – – 422,016 CAO Jian, Senior Vice President and executive Director 23 July 2020 23 July 2021 – 23 July 2023 23 July 2021 – 23 July 2030 6.70 314,388 – 314,388 – – – CAO Jian, Senior Vice President and executive Director 26 July 2021 26 July 2022 – 26 July 2024 26 July 2022 – 26 July 2031 8.40 2,357,201 – – – – 2,357,201 CAO Jian, Senior Vice President and executive Director 27 July 2022 27 July 2023 – 27 July 2025 27 July 2023 – 27 July 2032 6.378 2,258,366 – – – – 2,258,366 CAO Jian, Senior Vice President and executive Director 10 August 2023 10 August 2024 – 10 August 2026 10 August 2024 – 10 August 2033 5.58 2,247,493 – – – – 2,247,493 SUBTOTAL FOR DIRECTORS 37,357,475 – 4,645,524 – – 32,711,951 Employees 19 July 2019 19 July 2020 – 19 July 2022 19 July 2020 – 19 July 2029 7.618 5,975,458 – 280,000 – – 5,695,458 Employees 23 July 2020 23 July 2021 – 23 July 2023 23 July 2021 – 23 July 2030 6.70 5,390,699 – 1,507,413 – – 3,883,286 Employees 26 July 2021 26 July 2022 – 26 July 2024 26 July 2022 – 26 July 2031 8.40 18,473,474 – – – – 18,473,474 Employees 27 July 2022 27 July 2023 – 27 July 2025 27 July 2023 – 27 July 2032 6.378 11,088,415 – 2,418,611 – – 8,669,804 Employees 10 August 2023 10 August 2024 – 10 August 2026 10 August 2024 – 10 August 2033 5.58 12,599,465 – 1,115,337 – – 11,484,128 Total 90,884,986 – 9,966,885 – – 80,918,101
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Integrating global resources and promoting industry development 95INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS Note 1: Subject to the rules of the 2019 Share Option Scheme, the options granted will be vested to the grantees at the first, second and third anniversary of the date of grant at an average amount. Note 2: According to the 2019 Share Option Scheme, the options shall be exercised within the Option Period. “Option Period ” shall mean, in respect of any particular option, a period (which may not be later than 10 years from the offer date of that option) to be determined and notified by the Board or the administration committee to the grantee thereof and, in the absence of such determination, from the offer date to the earlier of (i) the date on which such option lapses; and (ii) 10 years from the offer date of that option. There is no minimum period for which any vested option must be held before it can be exercised and no performance target which need to be achieved by a grantee before the vested options can be exercised. Note 3: The exercise price is not less than the higher of (i) the closing price of HK$7.40 per share on the Stock Exchange as stated in the Stock Exchange ’s daily quotations sheet on 19 July 2019 (i.e. the grant date) and (ii) the average closing price of HK$7.618 per share on the Stock Exchange as stated in the Stock Exchange ’s daily quotations sheets for the five trading days immediately preceding 19 July 2019. The Share does not carry nominal value. The closing price of shares immediately before the date on which the options were granted is HK$7.38 per share. Note 4: The exercise price is not less than the higher of (i) the closing price of HK$6.480 per share on the Stock Exchange as stated in the Stock Exchange ’s daily quotations sheet on 23 July 2020 (i.e. the grant date) and (ii) the average closing price of HK$6.700 per share on the Stock Exchange as stated in the Stock Exchange ’s daily quotations sheets for the five trading days immediately preceding 23 July 2020. The Share does not carry nominal value. The closing price of shares immediately before the date on which the options were granted is HK$6.55 per share. Note 5: The exercise price is not less than the higher of (i) the closing price of HK$8.40 per share on the Stock Exchange as stated in the Stock Exchange ’s daily quotations sheet on 26 July 2021 (i.e. the grant date) and (ii) the average closing price of HK$8.202 per share on the Stock Exchange as stated in the Stock Exchange ’s daily quotations sheets for the five trading days immediately preceding 26 July 2021. The Share does not carry nominal value. The closing price of shares immediately before the date on which the options were granted is HK$8.32 per share. Note 6: The exercise price is not less than the higher of (i) the closing price of HK$6.340 per share on the Stock Exchange as stated in the Stock Exchange ’s daily quotations sheet on 27 July 2022 (i.e. the grant date) and (ii) the average closing price of HK$6.378 per share on the Stock Exchange as stated in the Stock Exchange ’s daily quotations sheets for the five trading days immediately preceding 27 July 2022. The Share does not carry nominal value. The closing price of shares immediately before the date on which the options were granted is HK$6.42 per share. Note 7: The exercise price is not less than the higher of (i) the closing price of HK$5.390 per share on the Stock Exchange as stated in the Stock Exchange ’s daily quotations sheet on 10 August 2023 (i.e. the grant date) and (ii) the average closing price of HK$5.58 per share on the Stock Exchange as stated in the Stock Exchange ’s daily quotations sheets for the five trading days immediately preceding 10 August 2023. The Share does not carry nominal value. The closing price of shares immediately before the date on which the options were granted is HK$5.55 per share. Note 8: In respect of the exercise of options by Mr. WANG Mingzhe during the reporting period, the weighted average closing price of shares immediately before the dates on which the options were exercised is HK$7.76. In respect of the exercise of options by Mr. CAO Jian during the reporting period, the weighted average closing price of shares immediately before the dates on which the options were exercised is HK$7.84. In respect of the exercise of options by the employees during the reporting period, the weighted average closing price of shares immediately before the dates on which the options were exercised is HK$7.5499. Note 9: No option is available for grant under the 2019 Share Option Scheme at the beginning and the end of the reporting period. During the reporting period, the Company did not grant any share options under all share option schemes (including the 2014 Share Option Scheme, the 2019 Share Option Scheme and the 2024 Share Option Scheme). Therefore, the number of shares that may be issued in respect of the share options granted under all the share option schemes of the Company during the reporting period divided by the weighted average number of shares in issue for the reporting period as required under Rule 17.07(3) of the Listing Rules is not applicable.
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Far East Horizon Limited ·2026 Interim Report 96 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 10.1.3 2024 Share Option Scheme The purpose of the 2024 Share Option Scheme is to reward the participants for their contribution to the Group and to encourage the participants to continue their efforts towards enhancing the value of the Company and its shares in the interests of the Company and all its Shareholders. Participants of the 2024 Share Option Scheme include employee participants who meet the conditions of participation as set out in the Listing Rules and the 2024 Share Option Scheme, specifically, include the senior management, middle management and other key employees of the Company or any subsidiary of the Company who meet the conditions of participation as set out in the Listing Rules and the 2024 Share Option Scheme. In determining the basis of eligibility of employee participants, their employment status with the Group, such as for how long they have been an employee, the managerial or key positions held and the corresponding functions assumed, individual expertise, skills or experience, contribution to the operation and management of the Group, and such other factors as may be deemed appropriate by the Board or the administration committee in its sole discretion will be taken in consideration. The 2024 Share Option Scheme is valid for 10 years from 5 June 2024, the date of its adoption. Therefore, as at 30 June 2026, the remaining life of the 2024 Share Option Scheme was approximately 8 years. The maximum number of new shares in respect of which options may be granted under the 2024 Share Option Scheme shall not exceed 4.00% of the Company ’s issued share capital as at the date of approval of the 2024 Share Option Scheme by the Shareholders, which is 172,770,846 shares, representing 3.59% of the issued share capital of the Company as at the disclosure date of this report. The maximum number of shares which are issued and to be issued upon exercise of share options (including exercised and unexercised share options) by any participant within any 12-month period must not exceed 1% of the issued shares from time to time. In the event that any further share options will be granted to such participant, which will result in the total number of shares issued and to be issued under all share options and awards granted to him/her (excluding the lapsed options and awards under the terms of the scheme) within the 12-month period up to and inclusive of the date of such further grant in excess of 1% of the issued shares, such grant would be approved by the Shareholders of the Company in general meetings, and such participant and his/her close associates (or his/her associates if the participant is a connected person) shall abstain from voting. Any grant of a share option to any director, chief executive or substantial Shareholder of the Company or their respective associates shall require the prior approval of the independent non-executive Directors of the Company (excluding the independent non-executive Director who is to be granted such share options). If the grant of a share option to any substantial shareholder or independent non-executive Director of the Company or any of their respective associates would result in the issue and proposed issue of shares in respect of all share options granted (excluding any options and awards lapsed in accordance with the scheme) in the twelve months prior to and including the date of such grant exceeding 0.1% of the total number of Shares of the Company in issue as at the date of the aforesaid grant, the further grant of the share option must be approved by the Shareholders of the Company at a general meeting in the manner as set out in Rule 17.04(4) of the Listing Rules, and the grantee and his/her associates and all core connected persons of the Company shall abstain from voting and a circular shall be despatched to Shareholders under the Listing Rules.
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Integrating global resources and promoting industry development 97INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS An offer shall be open for acceptance for such period within 14 days after the offer date by the selected participant. An offer not accepted within this period shall lapse. If the Company receives, within the period of the acceptance date, a letter of offer of share options duly signed by such participant specifying the number of Shares in respect of which he/she accepts the offer of share options and, at the same time, receives from him/her a remittance to the Company of the consideration for the grant of the share options in the amount of HK$1.00, the share options in respect of which the letter of offer of share options is signed shall be deemed to have been granted and to have become effective. The consideration of HK$1.00 for the grant of the share options is nominal only and taking into account the contributions made or to be made by the participants to the Group, the Board considers that the nominal consideration of HK$1.00 to be paid by each participant for the purchase of each of the share options is fair and reasonable and that such arrangement is in line with the purpose of the share option scheme, i.e. it is intended that share options be granted to the participants to incentivize them for their contribution to the Group. In accordance with the rules of the 2024 Share Option Scheme, share options shall be exercised within the share option period determined by the Board or the Administration Committee (which may not be later than 10 years from the granting date of relevant share options). The exercise price shall be determined in the sole discretion of the Board or the Administration Committee but shall in no event be less than the higher of: (i) the closing price of the Shares as stated in the Stock Exchange ’s daily quotations sheet on the granting date, which must be a business day; and (ii) the average closing price of the Shares as stated in the Stock Exchange ’s daily quotations sheets for the five business days immediately preceding the granting date. The share options will be vested according to the following vesting schedule: Vesting date Number of share options to be vested The date of the first anniversary of the granting date One-third of the share options (the number of Shares rounded to the nearest whole number) The date of the second anniversary of the granting date One-third of the share options (the number of Shares rounded to the nearest whole number) The date of the third anniversary of the granting date The remaining of the share options (the number of Shares rounded to the nearest whole number) The Board or the administration committee has the right to adjust the vesting period arrangement as described above, provided that the vesting period will not be shorter than 12 months and the requirements relating to the vesting period as set out in Rule 17.03F of the Listing Rules and the relevant guidelines are met.
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Far East Horizon Limited ·2026 Interim Report 98 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS During the reporting period, no options were granted under the 2024 Share Option Scheme. A summary of the movements of the outstanding share options under the 2024 Share Option Scheme during the reporting period is as follows: Grantee Date of grant Vesting period (Note 1) Exercise period (Note 2) Exercise price per share HK$ (Note 3-4) Outstanding as at 1 January 2026 Number of share options Outstanding as at 30 June 2026 Granted (Note 5-6) Exercised (Note 7) Lapsed Cancelled KONG Fanxing, CEO and executive Director 12 August 2024 12 August 2025 – 12 August 2027 12 August 2025 – 12 August 2034 5.39 4,319,900 – – – – 4,319,900 KONG Fanxing, CEO and executive Director 13 August 2025 13 August 2026 – 13 August 2028 13 August 2026 – 13 August 2035 7.53 4,762,087 – – – – 4,762,087 WANG Mingzhe, CFO and executive Director 12 August 2024 12 August 2025 – 12 August 2027 12 August 2025 – 12 August 2034 5.39 2,258,770 – 752,923 – – 1,505,847 WANG Mingzhe, CFO and executive Director 13 August 2025 13 August 2026 – 13 August 2028 13 August 2026 – 13 August 2035 7.53 2,264,897 – – – – 2,264,897 CAO Jian, Senior Vice President and executive Director 12 August 2024 12 August 2025 – 12 August 2027 12 August 2025 – 12 August 2034 5.39 2,258,770 – – – – 2,258,770 CAO Jian, Senior Vice President and executive Director 13 August 2025 13 August 2026 – 13 August 2028 13 August 2026 – 13 August 2035 7.53 2,264,897 – – – – 2,264,897 SUBTOTAL FOR DIRECTORS 18,129,321 – 752,923 – – 17,376,398 Employees 12 August 2024 12 August 2025 – 12 August 2027 12 August 2025 – 12 August 2034 5.39 20,480,211 – 587,100 – – 19,893,111 Employees 13 August 2025 13 August 2026 – 13 August 2028 13 August 2026 – 13 August 2035 7.53 25,229,205 – – – – 25,229,205 Total 63,838,737 – 1,340,023 – – 62,498,714
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Integrating global resources and promoting industry development 99INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS Note 1: Subject to the rules of the 2024 Share Option Scheme, the options granted will be vested to the grantees at the first, second and third anniversary of the date of grant at an average amount. Note 2: According to the 2024 Share Option Scheme, the options shall be exercised within the Option Period. “Option Period ” shall mean, in respect of any particular option, a period (which may not be later than 10 years from the offer date of that option) to be determined and notified by the Board or the administration committee to the grantee thereof and, in the absence of such determination, from the offer date to the earlier of (i) the date on which such option lapses; and (ii) 10 years from the offer date of that option. There is no minimum period for which any vested option must be held before it can be exercised and no performance target which need to be achieved by a grantee before the vested options can be exercised. Note 3: The exercise price is not less than the higher of (i) the closing price of HK$5.39 per share on the Stock Exchange as stated in the Stock Exchange ’s daily quotations sheet on 12 August 2024 (i.e. the grant date) and (ii) the average closing price of HK$5.34 per share on the Stock Exchange as stated in the Stock Exchange ’s daily quotations sheets for the five trading days immediately preceding 12 August 2024. The Share does not carry nominal value. The closing price of shares immediately before the date on which the options were granted is HK$5.46 per share. Note 4: The exercise price is not less than the higher of (i) the closing price of HK$7.53 per share on the Stock Exchange as stated in the Stock Exchange ’s daily quotations sheet on 13 August 2025 (i.e. the grant date) and (ii) the average closing price of HK$7.514 per share on the Stock Exchange as stated in the Stock Exchange ’s daily quotations sheets for the five trading days immediately preceding 13 August 2025. The Share does not carry nominal value. The closing price of shares immediately before the date on which the options were granted is HK$7.37 per share. Note 5: Pursuant to the rules of 2024 Share Option Scheme, the Board or the administration committee may, from time to time, in their respective absolute discretion, select the grantees and determine the number of share options to be granted in accordance with the rules of 2024 Share Option Scheme after taking into account a number of factors which they consider appropriate for the grant of share options under the 2024 Share Option Scheme. The terms on which share options are granted may be determined by the Board or the administration committee in their respective absolute discretion. The Board or the administration committee may, in its sole discretion, when offering share options, may impose any conditions, restrictions or limitations in relation thereto in addition to the rules of 2024 Share Option Scheme as it may deem appropriate (as set out in the letter containing the grant of the offer of the share options), including the performance, operating or financial targets to be achieved by the Company, the Company ’s subsidiary(ies) and/or the grantee, certain conditions or obligations or performance targets to be met or satisfactorily performed by the grantee who is granted the share options (including, as the case may be, his/her expertise, skills or experience, contribution to the Group, performance and synergies at work, achievement of performance targets or annual appraisal results, key performance indicators of respective department(s) that the grantee belongs), and the vesting time for the grantee to exercise all or part of his/her share options, provided that the terms and conditions shall not be inconsistent with any other terms of the 2024 Share Option Scheme. The Board or the administration committee will conduct assessment by comparing the actual performance, operating or financial results of the Company, the Company ’s subsidiary(ies) and the actual performance of the grantee with the pre-determined targets or individual performance indicators to determine whether or to what extent the performance targets have been met. Such pre-determined targets or individual performance indicators may be set by the Board or the administration committee on a case by case basis with reference to factors including the specific position and role of the relevant grantee, and the overall business plan, strategy and the expected financial performance of the Group in the relevant period. The performance target will be deemed to be met when the actual level achieved reaches or exceeds the level of the pre-determined targets or individual performance indicators Note 6: 103,728,674 options are available for grant under the 2024 Share Option Scheme as at the beginning and the end of the reporting period. During the reporting period, the Company did not grant any share options under all share option schemes (including the 2014 Share Option Scheme, the 2019 Share Option Scheme and the 2024 Share Option Scheme). Therefore, the number of shares that may be issued in respect of the share options granted under all the share option schemes of the Company during the reporting period divided by the weighted average number of shares in issue for the reporting period as required under Rule 17.07(3) of the Listing Rules is not applicable. Note 7: In respect of the exercise of options by Mr. WANG Mingzhe during the reporting period, the weighted average closing price of shares immediately before the date on which the options were exercised is HK$7.76. In respect of the exercise of options by the employees during the reporting period, the weighted average closing price of shares immediately before the dates on which the options were exercised is HK$7.6006.
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Far East Horizon Limited ·2026 Interim Report 100 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 10.1.4 2014 Restricted Share Award Scheme The 2014 Restricted Share Award Scheme (revised twice by the Board on 2 June 2016 and 20 March 2019) (the “Award Scheme ”) aims to incentivize and reward the selected participants (i.e. senior and middle management personnel, as well as other key employees of the Company or any of subsidiaries of the Company) for their contribution to the Group and align their interests with that of the Company so as to encourage them to work towards enhancing the value of the Company. The eligibility for selected participants will be decided by the Board or the administration committee of the Award Scheme, at its respective absolute discretion, as to his/her contribution to the Company or any of its subsidiaries. According to the rules of the Award Scheme, the restricted shares will be shares purchased by the trustee (an independent third party of the Company) with cash paid by the Company to the trustee from its own funds, and will be held on trust on behalf of the relevant selected grantees until such restricted shares are vested with the relevant selected grantees in accordance with the rules of the Award Scheme and the award conditions (if any) of such restricted shares. The maximum number of shares that may be granted under the Award Scheme shall not exceed the sum of the following: (i) 6.00% of the total number of issued shares when the Board approved the adoption of the Award Scheme on 11 June 2014, that is, 197,544,000 shares (accounting for approximately 4.10% of the issued share capital of the Company as at the disclosure date of this report); and (ii) 6.00% of the total number of issued shares when the Board approved the adoption of the revised Award Scheme on 20 March 2019, i.e. 237,251,856 shares (accounting for approximately 4.92% of the issued share capital of the Company as at the disclosure date of this report). There is no agreed limit on the upper limit of shares that may be granted for each grantee under the Award Scheme, and the grantee is not required to pay any amount for accepting the restricted share award granted. An offer shall be open for acceptance for such period within 28 days inclusive of, and from, the offer date by the selected participant. An offer not accepted within this period shall lapse. According to the rules of the Award Scheme, unless the Award Scheme is terminated early according to the resolution of the Board or the resolution of the Company ’s general meeting, the Award Scheme will remain valid. During the reporting period, the Company did not grant or vest any shares under the 2014 Restricted Share Award Scheme. As at 30 June 2026, there were no more shares to be granted under the 2014 Restricted Share Award Scheme.
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Integrating global resources and promoting industry development 101INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS The changes in the unvested restricted shares under the 2014 Restricted Share Award Scheme during the reporting period are summarized as follows: Grantee Date of grant Vesting period (Note 1) Not yet vested as at 1 January 2026 Changes in the number of restricted shares during the reporting period Not yet vested as at 30 June 2026 Granted (Notes 2, 4, 5) Vested (Note 3) Lapsed Cancelled KONG Fanxing, CEO and executive Director 10 August 2023 10 August 2024 – 10 August 2026 2,677,552 – – – – 2,677,552 WANG Mingzhe, CFO and executive Director 10 August 2023 10 August 2024 – 10 August 2026 1,084,266 – – – – 1,084,266 CAO Jian, Senior Vice President and executive Director 10 August 2023 10 August 2024 – 10 August 2026 1,084,266 – – – – 1,084,266 SUBTOTAL FOR DIRECTORS 4,846,084 – – – – 4,846,084 Employees 10 August 2023 10 August 2024 – 10 August 2026 11,181,309 – – – – 11,181,309 SUBTOTAL FOR EMPLOYEES 11,181,309 – – – – 11,181,309 TOTAL 16,027,393 – – – – 16,027,393 Five highest paid employees 10 August 2023 10 August 2024 – 10 August 2026 5,768,544 – – – – 5,768,544 TOTAL (FIVE HIGHEST PAID EMPLOYEES) 5,768,544 – – – – 5,768,544
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Far East Horizon Limited ·2026 Interim Report 102 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS Note 1: Subject to the rules of the Award Scheme, the restricted shares will be vested to the grantees at the first, second and third anniversary of the date of grant at an average amount. The rules of the Award Scheme do not stipulate the exercise period of the restricted shares granted. Note 2: According to the rules of the Award Scheme, the Board shall consider certain matters when determining the grant of such restricted shares to the grantees, including but not limited to: i. the current and expected contribution of the grantees to the Group ’s profits; ii. the general financial status of the Group; iii. the overall business objectives and future development plans of the Group; and iv. any other matters deemed relevant by the Board or the administration committee. Note 3: No share has been vested under the 2014 Restricted Share Award Scheme during the reporting period. Therefore, the weighted average closing price of shares immediately before the date(s) on which the shares were vested during the reporting period is not applicable. Note 4: As at 1 January 2026 and 30 June 2026, the number of shares available for grant under the Award Scheme was 0. Note 5: The 2014 Restricted Share Award Scheme does not involve the issuance of new shares. Therefore, the disclosure of the number of shares that may be issued in respect of the restricted shares granted under the 2014 Restricted Share Award Scheme during the reporting period divided by the weighted average number of shares in issue for the reporting period as required under Rule 17.07(3) of the Listing Rules is not applicable.
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Integrating global resources and promoting industry development 103INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 10.1.5 2024 Restricted Share Award Scheme The purpose of the 2024 Restricted Share Award Scheme is to provide participants with an opportunity to gain ownership in the Company; to encourage and retain participants to work for the Company; and to provide additional incentives which motivate them in achieving performance targets, so as to fulfill the goal of increasing the value of the Company and to connect the participants ’ interests directly to those of the Shareholders of the Company through the ownership of shares. Participants of 2024 Restricted Share Award Scheme are employee participants who meet the conditions of participation as set out in the rules of 2024 Restricted Share Award Scheme, specifically, include the senior management, middle management and other key employees of the Company or any subsidiary of the Company who meet the conditions of participation as set out in the 2024 Restricted Share Award Scheme. In determining the basis of eligibility of employee participants, their employment status with the Group, such as for how long they have been an employee, the managerial or key positions and the corresponding functions assumed, individual expertise, skills or experience, contribution to the operation and management of the Group, and such other factors as may be deemed appropriate by the Board or the administration committee in its sole discretion will be taken in consideration. Pursuant to the rules of the 2024 Restricted Share Award Scheme, the restricted shares will be shares purchased in the secondary market by the trustee out of the Company ’s own funds to the trustee, and will be held in trust on behalf of the grantees until such restricted shares are vested to the grantees in accordance with the 2024 Restricted Share Award Scheme. The maximum number of restricted shares that may be granted under the 2024 Restricted Share Award Scheme shall not exceed 6.00% of the total number of issued shares of the Company when the Board approved the adoption of the 2024 Restricted Share Award Scheme on 13 March 2024, i.e. 258,908,151 Shares (accounting for approximately 5.37% of the issued share capital of the Company as at the disclosure date of this report). There is no agreed limit on the upper limit of shares that may be granted for each grantee under the 2024 Restricted Share Award Scheme, and the grantee is not required to pay any amount for accepting the restricted shares granted. An offer shall be open for acceptance for such period within 28 days after the offer date by the selected participant. An offer not accepted within this period shall lapse. According to the rules of the 2024 Restricted Share Award Scheme, unless the 2024 Restricted Share Award Scheme is terminated early according to the resolution of the Board, the 2024 Restricted Share Award Scheme will remain valid. The vesting of restricted shares granted under the 2024 Restricted Share Award Scheme is subject to the achievement of the Company ’s performance targets for the previous year (based on the budget targets approved by the Board for the previous year, including net profit growth rate, EPS growth rate, ROE, etc.), and other vesting conditions specified in the 2024 Restricted Share Award Scheme. Upon fulfillment of the vesting conditions, one-third of the restricted shares granted to selected grantees will be vested on the first anniversary of the granting date, one-third on the second anniversary of the granting date and the remaining on the third anniversary of the granting date. During the reporting period, the Company did not grant or vest any Shares under the 2024 Restricted Share Award Scheme. As at 30 June 2026, the remaining shares to be granted under the 2024 Restricted Share Award Scheme were 155,344,891 shares.
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Far East Horizon Limited ·2026 Interim Report 104 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS The changes in the unvested restricted shares under the 2024 Restricted Share Award Scheme during the reporting period are summarized as follows: Grantee Date of grant Vesting period (Note 1) Not yet vested as at 1 January 2026 Changes in the number of restricted shares during the reporting period Not yet vested as at 30 June 2026 Granted (Notes 2, 4, 5) Vested (Note 3) Lapsed Cancelled KONG Fanxing, CEO and executive Director 12 August 2024 12 August 2025 – 12 August 2027 5,421,189 – – – – 5,421,189 KONG Fanxing, CEO and executive Director 13 August 2025 13 August 2026 – 13 August 2028 7,833,795 – – – – 7,833,795 WANG Mingzhe, CFO and executive Director 12 August 2024 12 August 2025 – 12 August 2027 2,176,403 – – – – 2,176,403 WANG Mingzhe, CFO and executive Director 13 August 2025 13 August 2026 – 13 August 2028 3,344,780 – – – – 3,344,780 CAO Jian, Senior Vice President and executive Director 12 August 2024 12 August 2025 – 12 August 2027 2,176,403 – – – – 2,176,403 CAO Jian, Senior Vice President and executive Director 13 August 2025 13 August 2026 – 13 August 2028 3,344,780 – – – – 3,344,780 SUBTOTAL FOR DIRECTORS 24,297,350 – – – – 24,297,350 Employees 12 August 2024 12 August 2025 – 12 August 2027 24,151,100 – – – – 24,151,100 Employees 13 August 2025 13 August 2026 – 13 August 2028 37,258,275 – – – – 37,258,275 SUBTOTAL FOR EMPLOYEES 61,409,375 – – – – 61,409,375 TOTAL 85,706,725 – – – – 85,706,725 Five highest paid employees 12 August 2024 12 August 2025 – 12 August 2027 11,678,347 – – – – 11,678,347 Five highest paid employees 13 August 2025 13 August 2026 – 13 August 2028 17,405,011 – – – – 17,405,011 TOTAL (FIVE HIGHEST PAID EMPLOYEES) 29,083,358 – – – – 29,083,358
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Integrating global resources and promoting industry development 105INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS Note 1: Subject to the rules of the Award Scheme, the restricted shares will be vested to the grantees at the first, second and third anniversary of the date of grant at an average amount. The rules of the Award Scheme do not stipulate the exercise period of the restricted shares granted. Note 2: Subject to the rules of the Award Scheme, the Board or the administration committee may select grantee(s) under the rules of the 2024 Restricted Share Award Scheme and grant restricted shares to such selected grantee(s) at its sole discretion from time to time. In determining the number of restricted shares to be granted to any selected grantee, the Board or the administration committee shall take into account certain matters, including but not limited to: (a) the current and expected contribution to the Group ’s profit from relevant selected grantees; (b) the expertise, skills or experience, performance and synergies at work and achievement of performance targets of relevant selected grantees; (c) the general financial condition, overall business objectives and future development plans of the Group; and (d) any other matters that the Board or the administration committee deems relevant. Note 3: No share has been vested under the 2024 Restricted Share Award Scheme during the reporting period. Therefore, the weighted average closing price of shares immediately before the date(s) on which the shares were vested during the reporting period is not applicable. Note 4: As at 1 January 2026 and 30 June 2026, the number of shares available for grant under the Award Scheme was 155,344,891. Note 5: The 2024 Restricted Share Award Scheme does not involve the issuance of new shares. Therefore, the disclosure of the number of shares that may be issued in respect of the restricted shares granted under the 2024 Restricted Share Award Scheme during the reporting period divided by the weighted average number of shares in issue for the reporting period as required under Rule 17.07(3) of the Listing Rules is not applicable. 10.2 Employee Benefits In accordance with applicable PRC regulations, the Group has made contributions to social security insurance funds (including pension plans, medical insurance, work-related injury insurance, unemployment insurance and maternity insurance) and housing funds for our employees. The Group also provides supplemental commercial medical insurance, property insurance and safety insurance in addition to those required under the PRC regulations. As of 30 June 2026, the Group complied with all statutory social insurance and housing fund obligations applicable to the Group under the PRC laws in all material aspects.
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Far East Horizon Limited ·2026 Interim Report 106 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 11. CIRCUMSTANCES INCLUDING CONTRACTUAL OBLIGATIONS, CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS 11.1 Contingent Liabilities The table below sets forth the total outstanding claims as of each of the dates indicated. As of 30 June 2026 As of 31 December 2025 RMB’000 RMB’000 Legal proceedings: Claimed amounts – – 11.2 Capital Commitments and Credit Commitments The Group had the following capital commitments and irrevocable credit commitments as of each of the dates indicated: As of 30 June 2026 As of 31 December 2025 RMB’000 RMB’000 Contracted, but not provided for: Capital expenditure for acquisition of property, plant and equipment 158,150 48,162 Irrevocable credit commitment (1) 3,655,654 7,147,750 Note: (1) The Group ’s irrevocable credit commitments primarily represent finance leases that have been signed but the term of the lease has not started.
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Integrating global resources and promoting industry development 107INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 12. FUTURE OUTLOOK Currently, China ’s development environment is undergoing profound and complex changes, and has entered a period where strategic opportunities, risks and challenges coexist, with increasing uncertainties and unpredictable factors. On the basis of “creating new incremental value for shareholders, customers, creditors, governments and employees ”, the Company will maintain a rapid pace of transformation, and reinforce its operational foundation and survival bedrock with a focus on building differentiated advantages, while sustaining its efforts to serve industrial upgrading and urban renewal. In respect of financial services, while holding the bottom line for risk control and reinforcing asset security, the Company continues to develop innovative service models. In terms of serving industries by expanding upward into integrated services, the Company will progressively upgrade its target customer management system, elevate marketing capabilities, and accelerate the development of a full-scenario solution framework that integrates B2B and B2C, thereby equipping the Company with capabilities that surpass those of simple financial services. In terms of serving industries by exploring downward towards inclusive finance, alongside increasing the inflow of business opportunities, the Company will upgrade its marketing control approaches through initiatives such as enhancing customer resource management, customer coverage requirements, and business space management. The Company will continue to intensify the application of AI technologies, and implement measures such as big data-based precise lists, customer relationship mapping, AI-powered intelligent risk control, and asset quantitative modeling, so as to avoid linear growth between business size and manpower input. In terms of serving urban development by focusing on vibrant regions, the Company continuously optimizes its asset allocation in vibrant regions to safeguard asset quality, and stabilize business traffic through innovation in marketing models, service portfolios and resource capabilities. The Company continuously adheres to the development direction of integrated urban services, striving for strategic breakthroughs in both service models and asset categories. In respect of industrial operation, the Company remains committed to its strategic direction and continuously enhances its operational management efficiency. Horizon Construction Development will firmly implement its “Three + Three + Three ” development strategy. Guided by a market-oriented approach and a customer-centric mindset, it will deepen the optimization of its asset structure and business mix. By upgrading its operating system through lean operations, it will steadily advance towards becoming a first-class global enterprise. Domestically, it will promote lean operations and reinforce its operational foundation. It will implement refined customer management and build a full-lifecycle service system. It will also pursue alignment of its asset structure with market demand, and develop innovative models such as multi-industry solutions and urban ecosystems offerings, while optimizing full- lifecycle asset management to enhance operational efficiency. Abroad, it will steadily advance its global footprint, leveraging the advantages of the domestic supply chain to capture incremental opportunities. In countries where it has already established a presence, it will refine its management and deepen localized operations, empowering business through its standardized system. It will also continuously track emerging markets with growth potential across the world, and broaden its international presence. Horizon Construction Development will coordinate resources both domestically and internationally, deepen business synergies, build core competitive barriers, upgrade refined management, and promote the steady improvement of operational quality and efficiency, so as to enter a new stage of development characterized by higher quality and greater resilience. Horizon Healthcare will actively respond to the national strategies of “Healthy China ” and “Actively Responding to Aging Population ”, and continue to focus on its layout in third-, fourth-, and fifth-tier cities and counties with relatively weak medical resources. With the mission of “good medical care not far away ”, it will completely demolish the two barriers. Adhering to the principle of “centering on patient and healthcare ”, it will accelerate upgrades from the process of treatment to health management, meet medical needs at different levels and classification through flexible methods, and establish platform-based and ecological operation. With the goal of improving the medical and health levels of counties and reducing the growth rate of medical insurance expenditures, it will fully meet the needs of counties for medical healthcare services, and build the healthcare management medical group with global vision. It aims to achieve long-term and sustainable development and step towards its vision of “building a long-living Horizon Healthcare brand that the government is pleased to see, the industry recognizes and in which people have confidence ”.
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Far East Horizon Limited ·2026 Interim Report 108 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 13. EQUIPMENT OPERATION SEGMENT REPORT Horizon Construction Development is a leading equipment operation service provider in China established by the Group. In 2025, committed to providing one-stop comprehensive solutions of “product + service ” for its customers in the construction and industrial sectors both at home and abroad, Horizon Construction Development ranked the 13th place in IRN World ’s Top 100 Rental Companies, which is awarded by KHL Group, one of the world ’s largest international building information providers. On 25 May 2023, Horizon Construction Development was officially listed on the Main Board of the Hong Kong Stock Exchange (stock code: 9930). As at 30 June 2026, the Group ’s direct shareholding in Horizon Construction Development was 41.69%, and the Group controlled 3.19% of the voting rights of Horizon Construction Development through Farsighted Wit Limited. Horizon Construction Development is a subsidiary of the Company and its results are consolidated in the financial statements of the Company. The key financial data are shown in the table below: For the six months ended 30 June 2026 2025 RMB million RMB million Change % Total revenue 4,024.06 4,350.06 -7.49% Gross profit 1,120.46 940.67 19.11% Total profit 53.08 50.28 5.57% Profit for the period 36.60 35.49 3.13% Return on average assets 0.2% 0.2% 0.0% Return on average equity 0.7% 0.6% 0.1% 30 June 2026 31 December 2025 RMB million RMB million Change % Total assets 35,802.00 36,368.35 -1.56% Total liabilities 24,742.22 25,043.50 -1.20% Total equity 11,059.78 11,324.85 -2.34% Gearing ratio 69.1% 68.9% 0.20%
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Integrating global resources and promoting industry development 109INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 14. HOSPITAL OPERATION SEGMENT REPORT In the first half of 2026, the number of hospitals controlled by the Group was 25 with the actual number of beds available amounting to approximately 10,000. A nationwide hospital operation network covering Eastern China, Southern China, Northern China, Southwest China, and Northeast China had been formed. The Group adhered to the differentiated layout, and “took root ” in various regions in China with positive and steady momentum. It also helps counties to achieve “two improvements and one reduction ” (i.e. improving the medical care and health levels of counties, and reducing the growth rate of medical insurance expenditures) through operational upgrades and management enhancements, aiming at “building a long-living Horizon Healthcare brand that the government is pleased to see, the industry recognizes and in which people have confidence ”. In view of the rapid changes in the environment, Horizon Healthcare maintained an innovative mindset, drove strategic upgrades, pioneered business models and leveraged its operational advantages as a group. It continued to strengthen the service link between high-quality medical resources in first – and second-tier cities and patients in disease origin, and promoted the construction of a hospital-centered healthcare ecosystem so that people in the region can enjoy diverse and multi-level medical and healthcare services nearby. The introduction of cutting-edge medical concepts and resources further enabled Horizon Healthcare to enhance its medical services and expand its international perspective. The key financial data of the hospital operation segment are shown in the table below: For the six months ended 30 June 2026 2025 RMB million RMB million Change % Total revenue from hospital operation (1) 1,692.80 1,810.06 -6.48% Total costs from hospital operation (2) (1,399.82) (1,469.49) -4.74% Gross profit from hospital operation 292.98 340.57 -13.97% Gross profit margin from hospital operation 17.31% 18.82% -1.51% Profit before tax 79.59 153.95 -48.30% Profit for the period 27.40 106.56 -74.29%
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Far East Horizon Limited ·2026 Interim Report 110 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 30 June 2026 31 December 2025 RMB million RMB million Change % Total assets 5,705.57 6,159.43 -7.37% Of which: fixed assets and intangible assets (4) 3,236.11 3,349.07 -3.37% Right-of-use assets (5) 517.39 536.38 -3.54% Accounts receivables 436.26 558.00 -21.82% Notes: (1) The revenue from hospital operation of the Group mainly comprises revenues from outpatient, inpatient and other revenues. Horizon Healthcare extends the scope of healthcare services based on its advantages in medical services, continues to innovate service models, and creates a new platform for health services. Adhering to its “five major concepts of hospital operation ”, Horizon Healthcare differentiates its layout, takes root in counties and operates locally while focusing on the healthcare needs of millions of residents in counties, and providing full-cycle, one-stop comprehensive services from medical care to health. The Group fully utilized its advantages as a group, and the member hospitals exerted their functions as a supplementary medical service provider in the local medical market. Facing the changes in healthcare demands of citizens and the complex hospital service environment, the Group placed an emphasis on the improvement in revenue quality and the revenue structure adjustment, resulting in a decrease in revenue. (2) The costs of hospital operation shown in the Group ’s consolidated financial statements of the first half of 2026 decreased to RMB1,400 million from approximately RMB1,469 million of the first half of 2025. The costs of hospital operation of the Group primarily included labor costs, pharmaceutical supplies, inspection costs and other costs, decreased comparing to the same period last year as a result of revenue structure adjustment and cost reduction and efficiency initiatives. The Group focused on process management and control, empowering the improvement of discipline connotation. Through measures such as enhancing professional technology, introducing expert resources and building flagship hospitals, the Group set benchmarks and led development. The Group also promoted centralized procurement empowerment, dug deep into digital work effects, established a quality management system, constructed a patient safety management model, optimized the quality management operation mechanism, adhered to the bottom line of legal compliance, and continued to consolidate the baseline of hospital compliance and healthy development, constructing a medical quality management system with the Group ’s characteristics to advance the high-quality development of hospitals. (3) This analysis of hospital operation segment profit statement has not taken into account the impact of shareholders ’ borrowings, goodwill and impairment of fixed assets. The data for the first half of 2025 include a one-off demolition gain of approximately RMB75 million from a hospital under the Group in Zhenhai, Ningbo. (4) Fixed asset and intangible assets mainly comprised medical equipment and buildings of each hospital. (5) Right-of-use assets mainly comprised the rent for hospital sites. (6) For the year, based on the actual operation of the hospital operation segment, the scope of the hospital operation segment has been adjusted and the comparative data has been restated.
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Integrating global resources and promoting industry development 111INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 15. INCLUSIVE FINANCE SEGMENT REPORT For the six months ended 30 June 2026 2025 RMB million RMB million Change % Interest income 2,710.12 1,451.22 86.75% Average yield on assets (1) 16.99% 14.72% 2.27% 30 June 2026 31 December 2025 RMB million RMB million Change % Net interest-earning assets 35,634.10 28,178.94 26.46% Less: provision for interest-earning assets (524.45) (453.76) 15.58% Net interest-earning assets 35,109.65 27,725.18 26.63% As a percentage of the Group ’s net interest-earning assets 12.62% 10.36% 2.26% Note: (1) Average yield represents the quotient of interest income as divided by average balance of interest-earning assets as at the beginning and end of the period, presented on an annualized basis. As the segment specialized in the financial leasing business of micro, small and medium-sized enterprises in the Group, the inclusive finance segment continues to dip deep into the long-tail market in economically developed areas such as those along rivers and coasts, and provides a wide range of financial products and services for vibrant downstream customers to effectively address the various funding needs of micro, small and medium-sized enterprises, such as the purchase of equipment, investment in research and development, and replenishment of liquidity, thereby assisting these enterprises to develop steadily and injecting vitality into the real economy. As at 30 June 2026, the inclusive finance segment had set up over 110 inclusive finance business outlets in more than 20 provinces across the country, with business presence in more than 175 cities, forming a relatively comprehensive customer service network, which enables the Group to respond to customers promptly and provide customers with efficient and convenient funding solutions and related services.
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Far East Horizon Limited ·2026 Interim Report 112 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS Since its establishment in 2019, the inclusive finance segment has primarily served micro, small and medium-sized enterprises situated in cities with developed manufacturing industries located in southeastern coastal provinces, such as Eastern China and Southern China, and has served over 40,000 customers cumulatively and disbursed funds of more than RMB100 billion in total, gaining wide recognition within and outside the industry. The inclusive finance segment was awarded the “Soaring Prize ” in China ’s financial leasing for six consecutive years from 2020 to 2025 by the Competitiveness Forum of the Global Leasing Industry, and the “Most Influential Financial Leasing Company ” from 2022 to 2023. It was also awarded the “Leading Enterprise of Inclusive Leasing ” from 2024 to 2025, and the “Star Cup ”, the Polaris award for the year, by the 13th China Leasing Annual Conference in 2025. Furthermore, Far East Horizon Inclusive Financial Leasing (Tianjin) Co., Limited, the primary platform company in the inclusive finance segment, successfully issued seven asset securitization products with a total scale of RMB13,600 million on the back of its own credit, and was honored with the “2025 Innovative Institution ” award at the 12th China Securitization Forum (CSF) Annual Commendation. Moving forward, the inclusive finance business will strive to expand diversified financing channels and optimize funding structures, injecting robust financial momentum to continuously enhance its capacity to serve the real economy. Since its establishment, the inclusive finance business has persistently focused on tapping into the long-tail market, and acquired authentic and detailed operational information from customers through a “door-to-door ” localized promotion model. It has gradually built a unique risk control model after reviewing the performance of its assets over the past few years. In order to build such model and accommodate subsequent asset growth, the Group continued to step up its human resources and increased the number of employees of the inclusive finance business from 2,294 as at the end of 2025 to 2,500 by mid-2026, of which over 1,900 were frontline business personnel. With the support of ample human resources, the inclusive finance business has achieved a high degree of diversification in both geographic and industry allocation while minimizing the average amount per asset, which in turn attained an optimal balance between returns and risks. More notably, despite the continuous expansion of frontline personnel, the inclusive finance business has maintained industry- leading labor efficiency, further propelling the steady growth of interest-earning assets, which is inseparable from the management philosophy of “digital and intelligent empowerment ” upheld by the inclusive finance business. Over the past few years, the inclusive finance business continued to promote the digital, online, automated and intelligent construction of its business processes, and deepen the concept of serving micro, small and medium-sized enterprises with efficient operations, realizing “paperless ” online operation throughout the entire process, and forming an industry-leading operation system through such technological means as online entry, electronic contracting and direct bank-business connection. It has also introduced intelligent solutions such as AI pre-screening, due diligence assistants, and fraud alerts to elevate “decision- making intelligence ”, establishing a unique risk control system within the industry. It is remarkable that the inclusive finance business has already achieved the ability to generate credit evaluation reports within “seconds ” across its entire product line, further solidifying a modern financial services system that equally emphasizes efficiency and risk management. The commercial logic of the inclusive finance business has progressively evolved from a “risk control ” approach in the past to the “risk management ” level. As at 30 June 2026, the net interest-earning assets of the inclusive finance business of the Group amounted to approximately RMB35,630 million, representing an increase of RMB7,460 million or approximately 26.46% from the end of the previous year, and an increase to 12.62% of the Group ’s net interest-earning assets from 10.36% as at the end of the previous year. By exploring customers in the long-tail market, the inclusive finance business achieved greater risk dispersion and higher efficient turnover. In the first half of 2026, the inclusive finance business completed 67.3 project investments (first half of 2025: 47.3) on average every day, and the average amount of individual projects remained at around RMB1.6 million. At the same time, the average yield on assets edged up to 16.99% in the first half of 2026, remaining broadly in line with the level in the second half of 2025 and maintaining a relatively stable position. By virtue of the rapid growth in investment scale and the gradual increase in average yield on assets, total interest income from the inclusive finance business of the Group amounted to RMB2,710 million in the first half of 2026, representing an increase of 86.75% from RMB1,451 million in the same period of the previous year.
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Integrating global resources and promoting industry development 113INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 15.1 Asset Quality of Net Interest-earning Assets The following table sets forth the five-category classification of interest-earning assets as of the dates indicated. 30 June 2026 31 December 2025 RMB million % of total RMB million % of total Pass 33,857.86 95.02% 26,632.47 94.51% Special mention 1,776.24 4.98% 1,546.47 5.49% Substandard – – – – Doubtful – – – – Loss – – – – Net interest-earning assets 35,634.10 100.00% 28,178.94 100.00% Non-performing assets – – – – Non-performing asset ratio – – – Reversal of non-performing assets after write-off 193.51 84.01 While ensuring efficient operations, the Group has also established a comprehensive risk management system for inclusive finance: on the business entry side, it adheres to the basic principle of risk-based pricing and has built an effective credit management system targeting small, medium and micro customers through the management of industrial, regional and operational risks; on the post-lease management side, it established a nationwide post-lease management team, and ensured prudent business operation and safe and solid asset quality through the combination of online and offline means of asset forewarning, collection and disposal. In order to better reflect the operating results of the inclusive finance business, the Group has further adopted a write- off policy that is better aligned with its current business development for non-performing assets of the inclusive finance business since 2025, i.e. classifying the assets overdue for more than 30 days as non-performing assets and 100% write-off of non-performing assets as at the end of the period. As the inclusive finance business of the Group is under rapid growth, the gradual expansion of its written-off non-performing asset size may increase the amount and proportion of the Group ’s written-off non-performing assets during the period.
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Far East Horizon Limited ·2026 Interim Report 114 INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS The following table sets forth the movement of non-performing assets of the Group as of the dates indicated. 30 June 2026 31 December 2025 RMB million RMB million At the beginning of the period/year – – Downgrades 1,051.03 1,043.56 Upgrades – – Recoveries – – Write-off/transfer-out (1,051.03) (1,043.56) At the end of the period/year – – Non-performing assets ratio – – Non-performing asset formation ratio (1) 3.73% 6.05% Credit cost ratio (2) 2.91% 5.19% Notes: (1) Non-performing asset formation ratio = (the balance of non-performing assets at the end of the period – the balance of non-performing assets at the beginning of the period + write-off/transfer-out of non-performing assets for the period)/(net pass interest-earning assets at the beginning of the period + net interest- earning assets under special mention at the beginning of the period), a non-annualized indicator. (2) Credit cost ratio = provision for interest-earning assets for the period/average balance of interest-earning assets, a non-annualized indicator. In first half of 2026, the credit cost ratio of the inclusive finance business was approximately 2.91% (31 December 2025: 5.19%), which was significantly higher than the average level of the Group, and also reflected the prudent and steady operation of the Group ’s inclusive finance business. Looking ahead, the Group will continue to enhance the comprehensive service capability of its inclusive finance business through its continuous specialized operation to meet the diversified needs of small, medium and micro customers, and strive to expand the market size and operating contribution of the inclusive finance segment.
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Integrating global resources and promoting industry development 115INTERIM REPORT DISCLOSURE OF INTERESTS DIRECTORS ’ AND CHIEF EXECUTIVES ’ INTERESTS AND/OR SHORT POSITIONS IN THE SHARES, UNDERLYING SHARES AND DEBENTURES OF THE COMPANY OR ANY OF ITS ASSOCIATED CORPORATIONS As at 30 June 2026, the interests or short positions of the directors and chief executives of the Company in the shares, underlying shares and debentures of the Company and any of its associated corporations (within the meaning of Part XV of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) (the “SFO”)) which were notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests or short positions which they are taken or deemed to have under such provisions of the SFO), or which were required, pursuant to section 352 of the SFO, to be entered in the register referred to therein, or which were required, pursuant to the Model Code for Securities Transactions by Directors of Listed Issuers (the “Model Code ”), to be notified to the Company and the Stock Exchange, were detailed as follows: Interests in the shares/underlying shares of the Company Name of director Capacity/nature of interest Number of ordinary shares (1) Approximate percentage of the issued share capital of the Company KONG Fanxing Beneficial owner 103,574,032(L) (2) 2.14% Interest in a controlled corporation 868,947,897(L) (3) 18.03% WANG Mingzhe Beneficial owner 37,900,476(L) (4) 0.78% LIU Jialin Beneficial owner 125,000(L) 0.00% Interest of spouse 125,000(L) 0.00% CAO Jian Beneficial owner 38,076,475(L) (5) 0.79%
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Far East Horizon Limited ·2026 Interim Report 116 INTERIM REPORT DISCLOSURE OF INTERESTS Notes: (1) The letter “L” denotes the person ’s long position in the shares of the Company. (2) The interest includes 6,703,326 underlying shares in respect of the share options granted pursuant to the Company ’s 2014 Share Option Scheme, 19,709,663 underlying shares in respect of the share options granted pursuant to the Company ’s 2019 Share Option Scheme, 9,081,987 underlying shares in respect of the share options granted pursuant to the Company ’s 2024 Share Option Scheme, 50,443,477 underlying shares in respect of the awarded shares granted pursuant to the Company ’s 2014 Restricted Share Award Scheme and 15,965,579 underlying shares in respect of the awarded shares granted pursuant to the Company ’s 2024 Restricted Share Award Scheme. In addition to the share interest in respect of the share options and awarded shares granted, to the best of the directors ’ knowledge, information and belief, having made all reasonable enquiries, Mr. KONG Fanxing is interested in 1,670,000 ordinary shares of the Company as at 30 June 2026. For details of those schemes, please refer to the 2025 annual report of the Company. (3) The interest includes 272,237,062 shares held directly by Idea Delicacy Limited, 40,726,000 shares held directly by Powerful Force HK Limited, 159,670,000 shares held directly by Will of Heaven HK Limited, 107,503,000 held directly by Swallow Gird HK Limited, 197,945,000 held directly by Energon HK Limited and an aggregate of 90,866,835 held directly by certain employees of the Company. All of them had unconditionally, irrevocably and permanently entrusted Idea Prosperous Limited, a company 100% owned by Mr. KONG Fanxing, to exercise the voting rights attached to the shares. (4) The interest includes 2,111,548 underlying shares in respect of the share options granted pursuant to the Company ’s 2014 Share Option Scheme, 5,717,212 underlying shares in respect of the share options granted pursuant to the Company ’s 2019 Share Option Scheme, 3,770,744 underlying shares in respect of the share options granted pursuant to the Company ’s 2024 Share Option Scheme, 19,105,588 underlying shares in respect of the awarded shares granted pursuant to the Company ’s 2014 Restricted Share Award Scheme and 6,609,384 underlying shares in respect of the awarded shares granted pursuant to the Company ’s 2024 Restricted Share Award Scheme. In addition to the share interest in respect of the share options and awarded shares granted, to the best of the directors ’ knowledge, information and belief, having made all reasonable enquiries, Mr. WANG Mingzhe is interested in 586,000 ordinary shares of the Company as at 30 June 2026. For details of those schemes, please refer to the 2025 annual report of the Company. (5) The interest includes 574,442 underlying shares in respect of the share options granted pursuant to the Company ’s 2014 Share Option Scheme, 7,285,076 underlying shares in respect of the share options granted pursuant to the Company ’s 2019 Share Option Scheme, 4,523,667 underlying shares in respect of the share options granted pursuant to the Company ’s 2024 Share Option Scheme, 19,083,906 underlying shares in respect of the awarded shares granted pursuant to the Company ’s 2014 Restricted Share Award Scheme and 6,609,384 underlying shares in respect of the awarded shares granted pursuant to the Company ’s 2024 Restricted Share Award Scheme. For details of those schemes, please refer to the 2025 annual report of the Company.
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Integrating global resources and promoting industry development 117INTERIM REPORT DISCLOSURE OF INTERESTS Interests in the shares/underlying shares of associated corporations of the Company Name of director Name of associated corporation Capacity/nature of interest Number of ordinary shares (1) Approximate percentage of the issued share capital of the associated corporation KONG Fanxing Horizon Construction Development Limited Beneficial owner 8,078,052(L) 0.25% WANG Mingzhe Horizon Construction Development Limited Beneficial owner 4,197,848(L) 0.13% LIU Jialin Horizon Construction Development Limited Beneficial owner 27,777(L) 0.00% Interest of spouse 27,777(L) 0.00% CAO Jian Horizon Construction Development Limited Beneficial owner 2,796,585(L) 0.08% Note: (1) The letter “L” denotes the person ’s long position in the shares of the associated company. Save as disclosed above, as at 30 June 2026, none of the directors or the chief executives of the Company had any interests or short positions in the shares, underlying shares or debentures of the Company or any associated corporations (within the meaning of Part XV of the SFO), which were required to be notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests or short positions which he/she is taken or deemed to have under such provisions of the SFO), or which were required to be entered in the register kept by the Company pursuant to Section 352 of the SFO or which were required to be notified to the Company and the Stock Exchange pursuant to the Model Code.
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Far East Horizon Limited ·2026 Interim Report 118 INTERIM REPORT DISCLOSURE OF INTERESTS SUBSTANTIAL SHAREHOLDERS ’ INTERESTS IN THE SHARES Based on the information available to the directors of the Company, as at 30 June 2026 (including such information as was available on the website of the Stock Exchange) or so far as they are aware of, as at 30 June 2026, the entities or individuals who had interests or short positions in the shares or underlying shares of the Company which fall to be disclosed to the Company under Divisions 2 and 3 of Part XV of the SFO, or which were recorded in the register kept by the Company under section 336 of the SFO or had otherwise notified to the Company were as follows: Name of shareholder Capacity/nature of interest Number of ordinary shares (1) Approximate percentage of the issued share capital of the Company Sinochem Capital Investment Management (Hong Kong) Limited (2) Beneficial owner 919,914,440(L) 19.09% Sinochem Capital Investment Management Limited (2) Interest in a controlled corporation 919,914,440(L) 19.09% Sinochem Corporation (2) Interest in a controlled corporation 919,914,440(L) 19.09% Sinochem Group Co., Ltd (2) Interest in a controlled corporation 919,914,440(L) 19.09% The State-owned Assets Supervision and Administration Commission of the State Council (2) Interest in a controlled corporation 919,914,440(L) 19.09% KONG Fanxing Beneficial owner 103,574,032(L) (3) 2.14% Interest in a controlled corporation 868,947,897(L) (4) 18.03% Idea Prosperous Limited (4) Entrusted to exercise voting rights 868,947,897(L) 18.03% Aim Future Limited (5) Interest in a controlled corporation 505,844,000(L) 10.49% Gold Stone Enterprise Limited (5) Interest in a controlled corporation 505,844,000(L) 10.49% Cantrust (Far East) Limited (5) Trustee 505,844,000(L) 10.49% UBS Group AG (6) Interest in a controlled corporation 336,132,649(L) 6.97% Sunshine Trust Company Limited (7) Trustee 272,237,062(L) 5.65% LIU Haifeng David Founder of a discretionary trust who can influence how the trustee exercises his discretion 344,394,100(L) 7.14% 65,443,109(S) 1.35% Interest in a controlled corporation 1,067,000(L) (8) 0.02%
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Integrating global resources and promoting industry development 119INTERIM REPORT DISCLOSURE OF INTERESTS Name of shareholder Capacity/nature of interest Number of ordinary shares (1) Approximate percentage of the issued share capital of the Company Vivian CHEN (9) Interest of spouse 345,461,100(L) 7.17% 65,443,109(S) 1.35% Capital Rise Limited Beneficial owner 314,775,100(L) 6.53% 35,824,109(S) 0.74% Capital Bridge Limited (10) Interest in a controlled corporation 344,394,100(L) 7.14% 65,443,109(S) 1.35% DCP Capital Partners L.P. (10) Interest in a controlled corporation 344,394,100(L) 7.14% 65,443,109(S) 1.35% DCP General Partner, Ltd (10) Interest in a controlled corporation 344,394,100(L) 7.14% 65,443,109(S) 1.35% DCP, Ltd. (10) Interest in a controlled corporation 344,394,100(L) 7.14% 65,443,109(S) 1.35% Julian Juul WOLHARDT (10) Interest in a controlled corporation 344,394,100(L) 7.14% 65,443,109(S) 1.35% Classic Fit Limited (10) Interest in a controlled corporation 344,394,100(L) 7.14% 65,443,109(S) 1.35% J.P. Morgan Trust Company (Bahamas) Limited (10) Trustee 344,394,100(L) 7.14% 65,443,109(S) 1.35%
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Far East Horizon Limited ·2026 Interim Report 120 INTERIM REPORT DISCLOSURE OF INTERESTS Notes: (1) The letter “L” denotes the person ’s long position in the shares of the Company. The letter “S” denotes the person ’s short position in the shares of the Company. (2) Sinochem Capital Investment Management (Hong Kong) Limited is 100% controlled by Sinochem Capital Investment Management Limited, which is 100% controlled by Sinochem Corporation, which is in turn controlled as to 98% by Sinochem Group Co., Ltd. Sinochem Group Co., Ltd is 100% controlled by the State-owned Assets Supervision and Administration Commission of the State Council. (3) Please refer to Note (2) of the sub-section headed “Interests in the shares/underlying shares of the Company ” under the section headed “Directors ’ and Chief Executives ’ Interests and/or Short Positions in the Shares, Underlying Shares and Debentures of the Company or any of its Associated Corporations ” for further details of the shareholding structure. (4) Please refer to Note (3) of the sub-section headed “Interests in the shares/underlying shares of the Company ” under the section headed “Directors ’ and Chief Executives ’ Interests and/or Short Positions in the Shares, Underlying Shares and Debentures of the Company or any of its Associated Corporations ” for further details of the shareholding structure. (5) The interest is held directly by Will of Heaven HK Limited, Swallow Gird HK Limited, Powerful Force HK Limited and Energon HK Limited. Will of Heaven HK Limited, Swallow Gird HK Limited, Powerful Force HK Limited and Energon HK Limited are 100% controlled by Aim Future Limited, which is in turn 100% controlled by Gold Stone Enterprise Limited. Cantrust (Far East) Limited is the trustee of The Gold Stone I Trust and holds 100% interest in Gold Stone Enterprise Limited. (6) Please refer to Form 2 – Corporate Substantial Shareholder Notice for the relevant event on 5 June 2026 for further details of the shareholding structure. (7) The interest is held directly by Idea Delicacy Limited, which is 100% controlled by Sunshine Trust Company Limited. (8) The interest is held directly by New Trace Limited which is 100% controlled by Mr. LIU Haifeng David. (9) Ms. Vivian CHEN is the spouse of Mr. LIU Haifeng David. (10) The interest includes long position in 314,775,100 ordinary shares and short position of 35,824,109 ordinary shares of the Company held directly by Capital Rise Limited and long position in 29,619,000 ordinary shares and short position in 29,619,000 ordinary shares of the Company held directly by Capital Lead Limited. Capital Bridge Limited holds the entire share capital of Capital Rise Limited and Capital Lead Limited respectively. Capital Bridge Limited is 100% controlled by DCP Capital Partners L.P., which is 100% controlled by DCP General Partner, Ltd, which in turn is 100% controlled by DCP Partners Limited. DCP Partners Limited is 100% controlled by DCP, Ltd., which is 50% controlled by Mr. Julian Juul Wolhardt and 50% controlled by Classic Fit Limited. Classic Fit Limited is 100% controlled by J.P. Morgan Trust Company (Bahamas) Limited, trustee of a private trust. Save as disclosed above, the register required to be kept under section 336 of the SFO showed that the Company had not been notified by any person of any interest or short position in the Shares or underlying Shares of the Company.
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Integrating global resources and promoting industry development 121INTERIM REPORT CORPORATE GOVERNANCE CORPORATE GOVERNANCE CODE The Company has applied the principles and code provisions as set out in the Corporate Governance Code (the “CG Code ”) as contained in Appendix C1 of the Listing Rules. The Company has complied with the code provisions of the CG Code throughout the period from 1 January 2026 to 30 June 2026, except for code provisions B.3.5, C.2.1 and F.1.3 as explained below. Pursuant to code provision B.3.5 of the CG Code, issuers should appoint at least one director of a different gender to the nomination committee. During the period from 1 January 2026 to 30 June 2026, all members of the Remuneration and Nomination Committee of the Company were of a single gender, and the Company has therefore deviated from code provision B.3.5. During the reporting period, the structure of the Remuneration and Nomination Committee was in compliance with Rule 3.27A of the Listing Rules, and has not caused any material adverse impact on the performance of duties by the Remuneration and Nomination Committee or the formulation and implementation of the diversity policy for the Board and employees of the Company. Meanwhile, the proportion of members of the Remuneration and Nomination Committee to the number of members of the Board is relatively appropriate, which satisfies the needs of the Remuneration and Nomination Committee to perform its duties in accordance with its terms of reference. In addition, the Company has adopted and implemented a board diversity policy, according to which, in order to achieve long-term compliance with the gender diversity policy, the Company will give priority to meeting the needs of gender diversity under equal conditions when considering potential candidates for directors. Nevertheless, the Board will take into account the requirements of corporate governance and make comprehensive considerations, and will appoint a female director as a member of the Remuneration and Nomination Committee of the Company as soon as practicable, so as to comply with the requirements of code provision B.3.5 of the CG Code as set out in Appendix C1 to the Listing Rules. Taking into account the time required to identify suitable candidates and to complete the its internal procedures, the Company expects to progress this matter as soon as possible within the current financial year. Pursuant to code provision C.2.1 of the CG Code, the roles of chairman and chief executive officer should be separate and should not be performed by the same individual. The division of responsibilities between the chairman and chief executive officer should be clearly established and set out in writing. During the period from 1 January 2026 to 30 June 2026, the Company has deviated from code provision C.2.1 with the positions of the chairman of the Board (the “Chairman ”) and the chief executive officer of the Company (the “Chief Executive Officer ”) being held by Mr. KONG Fanxing. The Board however believes that it is in the interests of the Company to vest the roles of both the Chairman and the Chief Executive Officer in the same person, so as to provide consistent leadership within the Group and facilitate the prompt execution of the Group ’s business strategies and boost operation effectiveness. The Board also believes that the balance of power and authority under this arrangement will not be impaired, as all major decisions must be made in consultation with the Board as a whole, together with relevant Board committees, which comprise experienced and high caliber individuals, with four independent non-executive Directors who are in the position to provide independent insights to the Board and monitor the management and operation of the Company. The Board will periodically review and consider the effectiveness of this arrangement by taking into account the circumstances of the Group as a whole.
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Far East Horizon Limited ·2026 Interim Report 122 INTERIM REPORT CORPORATE GOVERNANCE Code provision F.1.3 of the CG Code stipulates that, among others, the chairman of the board should attend the annual general meeting and invite the chairmen of the audit, remuneration and nomination committees (as appropriate) or in the absence of the chairman of such committees, another member of the committee to attend and be available to answer relevant questions at the annual general meeting. At the annual general meeting of the Company held on 10 June 2026 (the “2026 AGM”), Mr. YIP Wai Ming (the chairman of the Audit and Risk Management Committee), Mr. LIU Jialin (the chairman of the Remuneration and Nomination Committee), Mr. WONG Ka Fai Jimmy (the chairman of the Environmental, Social and Governance Committee and the member of the Strategy and Investment Committee), Mr. HAN Xiaojing (the member of each of the Audit and Risk Management Committee, the Remuneration and Nomination Committee and the Environmental, Social and Governance Committee), Mr. KUO Ming-Jian (the member of the Remuneration and Nomination Committee) and Mr. John LAW (the member of each of the Audit and Risk Management Committee and the Environmental, Social and Governance Committee) were unable to attend due to other important business engagements. To ensure relevant matters can be smoothly handled at the 2026 AGM, Mr. KONG Fanxing (the Chairman and the member of the Strategy and Investment Committee) attended and chaired the 2026 AGM to answer questions where necessary. MODEL CODE FOR SECURITIES TRANSACTIONS The Company has devised its own code of conduct regarding Directors ’ dealings in the Company ’s securities (the “Code of Conduct ”) on terms no less exacting than the required standard set out in the Model Code for Securities Transactions by Directors of Listed Issuers (the “Model Code ”) as set out in Appendix C3 to the Listing Rules. Specific enquiry has been made to all the Directors and the Directors have confirmed that they have complied with the Code of Conduct throughout the six months ended 30 June 2026. The Company has also established written guidelines (the “Employees Written Guidelines ”) no less exacting than the required standard set out in the Model Code for securities transactions by employees who are likely to be in possession of unpublished inside information of the Company. No incident of non-compliance with the Employees Written Guidelines by the employees was noted by the Company for the six months ended 30 June 2026.
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Integrating global resources and promoting industry development 123INTERIM REPORT CORPORATE GOVERNANCE INDEPENDENT NON/hyphen.capEXECUTIVE DIRECTORS During the period from 1 January 2026 to 30 June 2026, the board of directors had been in compliance with Rule 3.10(1) of the Listing Rules, which requires a company to maintain at least three independent non-executive directors in the board of directors; with Rule 3.10(2) of the Listing Rules, which requires one of those independent non-executive directors to be specialized in accounting or relevant financial management; and with Rule 3.10A of the Listing Rules, which requires independent non-executive directors representing at least one-third of the board of directors. AUDIT AND RISK MANAGEMENT COMMITTEE The Company has established an audit and risk management committee (the “Audit and Risk Management Committee ”) in compliance with Rules 3.21 and 3.22 of the Listing Rules. The Audit and Risk Management Committee comprises three members, including Mr. YIP Wai Ming as chairman, Mr. HAN Xiaojing and Mr. John LAW. This interim report has been reviewed by the Audit and Risk Management Committee. The Audit and Risk Management Committee has reviewed, with the management and the external auditors, the condensed consolidated financial statements for the six months ended 30 June 2026 of the Group, including the accounting principles and practices adopted by the Group.
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Far East Horizon Limited ·2026 Interim Report 124 INTERIM REPORT OTHER INFORMATION IMPLEMENTATION OF DISTRIBUTION OF 2025 FINAL DIVIDEND According to the proposal in relation to dividend distribution, which was considered and passed at the 2026 AGM held on 10 June 2026, the Group has paid a dividend of HK$0.31 per share to shareholders whose names appear on the register of members of the Company on 18 June 2026, thereby resulting in a total dividend payment amount of HK$1,471,979,000. INTERIM DIVIDEND The Board approved the payment of an interim dividend of HK$0.25 per share in respect of the six months ended 30 June 2026 to shareholders whose names appear on the register of members of the Company on Friday, 18 September 2026. The interim dividend will be paid on Tuesday, 29 September 2026. CLOSURE OF SHARE REGISTER The date of payment of the interim dividend is expected to be Tuesday, 29 September 2026. For determining the entitlement to the interim dividend, the register of members of the Company will be closed from Wednesday, 16 September 2026 to Friday, 18 September 2026, both days inclusive, during which period no transfer of shares will be registered. The record date on which the shareholders are qualified to receive the interim dividend is Friday, 18 September 2026. In order to qualify for the interim dividend, all completed transfer forms accompanied by the relevant share certificates must be lodged with the Company ’s share registrar, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen ’s Road East, Wan Chai, Hong Kong, for registration not later than 4:30 p.m. (Hong Kong time) on Tuesday, 15 September 2026, being the last registration date. PURCHASE, SALE OR REDEMPTION OF THE COMPANY ’S LISTED SECURITIES Neither the Company nor any of its subsidiaries had purchased, redeemed or sold any shares of the Company for the six months ended 30 June 2026. TREASURY SHARES As at the end of the reporting period, the Company did not hold (or hold through CCASS or deposit in CCASS) any treasury share. Hence, disclosure requirements in respect of treasury shares under the Listing Rules are not applicable.
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Integrating global resources and promoting industry development 125INTERIM REPORT OTHER INFORMATION AMENDMENTS TO ARTICLES OF ASSOCIATION During the reporting period, the amendments to the Articles of Association of the Company have been approved by the Shareholders by way of a special resolution at the AGM held on 10 June 2026, and have become effective from 10 June 2026. Such amendments to the Articles of Association were for the purpose of bringing the Articles of Association in line with the latest regulatory requirements including the expanded paperless listing regime and the relevant amendments made to the Listing Rules, aligning with the latest legal and regulatory requirements in relation to treasury shares to the Listing Rules and the Companies Ordinance (Chapter 622 of the Laws of Hong Kong), and making other housekeeping amendments to the Articles of Association. Please refer to the circular dated 28 April 2026 for details CHANGES IN DIRECTORS ’ BIOGRAPHICAL DETAILS Changes in directors ’ biographical details as at the disclosure date of this report, which are required to be disclosed pursuant to Rule 13.51B(1) of the Listing Rules, are set out below: Name of director Details of changes KUO Ming-Jian Ceased to serve as a director of Cathay Securities Investment Trust Co., Ltd. (ৄ ʮ̡ ) with effect from 22 June 2026. Ceased to serve as a director of Cathay Financial Holding Co., Ltd. (ʮ̡ ) with effect from 26 June 2026. Ceased to serve as the chairman of Cathay United Bank ( इ˰ശვБ ) with effect from 26 June 2026. Ceased to serve as a director of Cathay Private Equity Co., Ltd. (ʮ̡ ) with effect from 26 June 2026.
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Far East Horizon Limited ·2026 Interim Report 126 INTERIM REPORT INDEPENDENT REVIEW REPORT Ernst & Young 27/F, One Taikoo Place 979 King ’s Road Quarry Bay, Hong Kong ה ༸ 979 ࢭ27ᅽ Telཥ༑: +852 2846 9888 Faxෂॆ: +852 2868 4432 ey.com To the board of directors of Far East Horizon Limited (Incorporated in Hong Kong with limited liability) INTRODUCTION We have reviewed the interim financial information set out on pages 127 to 220, which comprises the condensed consolidated statement of financial position of Far East Horizon Limited (the “Company ”) and its subsidiaries (the “Group”) as at 30 June 2026 and the related condensed consolidated statements of profit or loss, comprehensive income, changes in equity and cash flows for the six-month period then ended, and explanatory notes. The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited require the preparation of a report on interim financial information to be in compliance with the relevant provisions thereof and Hong Kong Accounting Standard 34 Interim Financial Reporting ( “HKAS 34 ”) as issued by the Hong Kong Institute of Certified Public Accountants ( “HKICPA ”). The directors of the Company are responsible for the preparation and presentation of this interim financial information in accordance with HKAS 34. Our responsibility is to express a conclusion on this interim financial information based on our review. Our report is made solely to you, as a body, in accordance with our agreed terms of engagement, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report. SCOPE OF REVIEW We conducted our review in accordance with Hong Kong Standard on Review Engagements 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity as issued by the HKICPA. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Hong Kong Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. CONCLUSION Based on our review, nothing has come to our attention that causes us to believe that the interim financial information is not prepared, in all material respects, in accordance with HKAS 34. Ernst & Young Certified Public Accountants Hong Kong 5 August 2026
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Integrating global resources and promoting industry development 127INTERIM REPORT INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS For the six months ended 30 June 2026 2026 2025 (Unaudited) (Unaudited) Notes RMB’000 RMB’000 Interest income 4 11,621,542 10,657,250 Revenue from operating leases 4 2,961,691 2,926,173 Revenue from contracts with customers 4 3,532,078 3,835,905 Tax and surcharges 4 (76,504) (82,873) Cost of sales (8,454,013) (9,686,711) Other income and gains 4 1,000,260 1,082,425 Selling and distribution costs (1,616,119) (1,699,198) Administrative expenses (2,794,701) (2,197,313) Impairment losses on financial and contract assets (1,073,137) (123,160) Losses on derecognition of financial assets measured at amortised cost (592) (1,350) Other expenses (444,023) (283,560) Finance costs (468,162) (588,066) Share of net profits of: Associates 58,506 72,012 Share of net (losses)/profits of: Joint ventures (149,016) 100,391 PROFIT BEFORE TAX 5 4,097,810 4,011,925 Income tax expense 6 (1,837,394) (1,823,497) PROFIT FOR THE PERIOD 2,260,416 2,188,428 Attributable to: Ordinary shareholders of the Company 2,221,547 2,163,585 Non-controlling interests 38,869 24,843 2,260,416 2,188,428 EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT 8 RMB RMB Basic – Earnings per share 0.47 0.51 Diluted – Earnings per share 0.47 0.47 Details of the dividends payable and proposed for the period are disclosed in Note 7 to the interim condensed consolidated financial information.
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Far East Horizon Limited ·2026 Interim Report 128 INTERIM REPORT INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the six months ended 30 June 2026 2026 2025 (Unaudited) (Unaudited) RMB’000 RMB’000 PROFIT FOR THE PERIOD 2,260,416 2,188,428 OTHER COMPREHENSIVE INCOME Other comprehensive income that may be reclassified to profit or loss in subsequent periods, net of tax: Cash flow hedges: Effective portion of changes in fair value of hedging instruments arising during the period (1,931,723) (867,053) Reclassification to the consolidated statement of profit or loss 1,882,749 (278,473) Income tax effect (1,386) (203) (50,360) (1,145,729) Exchange differences: Exchange differences on translation of foreign operations (313,680) (33,120) (313,680) (33,120) Net other comprehensive income that will be reclassified to profit or loss in subsequent periods (364,040) (1,178,849) OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF TAX (364,040) (1,178,849) TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 1,896,376 1,009,579 Attributable to: Ordinary shareholders of the Company 2,013,191 1,005,598 Non-controlling interests (116,815) 3,981 1,896,376 1,009,579
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129INTERIM REPORT Integrating global resources and promoting industry development INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30 June 2026 30 June 2026 31 December 2025 (Unaudited) (Audited) Notes RMB’000 RMB’000 NON-CURRENT ASSETS Property, plant and equipment 9 24,773,897 25,596,257 Investment properties – 9,829 Right-of-use assets 2,157,969 2,300,196 Goodwill 187,256 368,716 Other intangible assets 124,661 133,533 Investments in joint ventures 12 5,504,420 6,060,292 Investments in associates 13 4,052,060 4,118,472 Financial assets at fair value through profit or loss 16 11,170,887 11,739,389 Derivative financial instruments 11 589 71,905 Loans and accounts receivables 10 121,622,146 114,508,897 Prepayments, other receivables and other assets 790,035 786,405 Deferred tax assets 19 6,664,112 6,232,591 Restricted deposits 14 9,195,415 9,195,415 Total non-current assets 186,243,447 181,121,897 CURRENT ASSETS Inventories 569,883 597,726 Loans and accounts receivables 10 162,223,996 159,010,646 Contract assets 580,255 660,263 Prepayments, other receivables and other assets 3,083,917 3,405,131 Debt investment at fair value through other comprehensive income 370,534 260,855 Financial assets at fair value through profit or loss 16 2,545,002 2,454,400 Derivative financial instruments 11 81,511 248,703 Restricted deposits 14 1,300,075 1,243,968 Cash and cash equivalents 14 16,225,208 21,375,169 Assets held for sale 15 – 582,611 Total current assets 186,980,381 189,839,472
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130 INTERIM REPORT Far East Horizon Limited ·2026 Interim Report INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30 June 2026 30 June 2026 31 December 2025 (Unaudited) (Audited) Notes RMB’000 RMB’000 CURRENT LIABILITIES Trade and bills payables 17 8,243,260 7,771,420 Other payables and accruals 11,878,496 12,672,894 Derivative financial instruments 11 763,521 311,602 Convertible bonds – host debts – 3,047 Interest-bearing bank and other borrowings 18 132,638,232 134,107,891 Lease liabilities 18 342,179 337,992 Income tax payable 1,355,065 1,702,395 Total current liabilities 155,220,753 156,907,241 NET CURRENT ASSETS 31,759,628 32,932,231 TOTAL ASSETS LESS CURRENT LIABILITIES 218,003,075 214,054,128 NON-CURRENT LIABILITIES Interest-bearing bank and other borrowings 18 133,550,574 132,808,729 Lease liabilities 18 477,802 556,151 Derivative financial instruments 11 2,221,779 1,000,675 Deferred tax liabilities 19 1,095,324 1,328,295 Other payables and accruals 16,681,923 15,090,937 Deferred revenue 786,973 834,805 Other non-current liabilities 2,071,083 2,140,892 Total non-current liabilities 156,885,458 153,760,484 Net assets 61,117,617 60,293,644
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131INTERIM REPORT Integrating global resources and promoting industry development INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30 June 2026 30 June 2026 31 December 2025 (Unaudited) (Audited) Notes RMB’000 RMB’000 EQUITY Equity attributable to ordinary shareholders of the parent Share capital 20 15,761,675 15,639,775 Equity component of convertible bonds – 103 Reserves 21 37,172,378 36,302,246 52,934,053 51,942,124 Non-controlling interests 8,183,564 8,351,520 Total equity 61,117,617 60,293,644 Kong Fanxing Wang Mingzhe Director Director
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Far East Horizon Limited ·2026 Interim Report 132 INTERIM REPORT INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the six months ended 30 June 2026 Attributable to ordinary shareholders of the parent Share capital Equity component of convertible bonds Capital reserve Shares held for the share award scheme Share-based compensation reserve Shares held for the share award scheme of a subsidiary Special reserve Reserve fund Hedging reserve Exchange fluctuation 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 RMB’000 (Note 20) (Note 21) (Note 21) (Note 21) (Note 21) (Note 21) At 1 January 2026 15,639,775 103 573,019 (318,322) 409,770 (37,102) 118,747 121,913 (727,620) 477,020 35,684,821 51,942,124 8,351,520 60,293,644 Profit for the period – – – – – – – – – – 2,221,547 2,221,547 38,869 2,260,416 Other comprehensive income for the period: Cash flow hedges, net of tax – – – – – – – – (50,840) – – (50,840) 480 (50,360) Exchange differences on translation of foreign operations – – – – – – – – – (157,516) – (157,516) (156,164) (313,680) Total comprehensive income – – – – – – – – (50,840) (157,516) 2,221,547 2,013,191 (116,815) 1,896,376 Final 2025 dividend declared (net of dividends received from shares held for the share award scheme) (Note 7) – – – – – – – – – – (1,279,739) (1,279,739) – (1,279,739) Transfer of share option reserve upon exercise of share options 118,791 – – – (20,431) – – – – – – 98,360 – 98,360 Recognition of equity-settled share-based payments – – – – 153,267 – – – – – – 153,267 5,972 159,239 Special reserve – safety fund appropriation – – – – – – 1,171 – – – (1,171) – – – Capital injection by non-controlling shareholders – – 2,665 – – – – – – – – 2,665 10,179 12,844 Capital reduction by non-controlling shareholders – – – – – – – – – – – – (6,480) (6,480) Share of other reserves of investments accounted for using the equity method – – 120 – – – – – – – – 120 – 120 Disposal of subsidiaries – – – – – – – – – – – – (10,208) (10,208) Dividends declared to non-controlling shareholders – – – – – – – – – – – – (50,604) (50,604) Issue of shares upon conversion of convertible bonds 3,109 (103) – – – – – – – – – 3,006 – 3,006 Others – – 1,285 – – – – – – – (226) 1,059 – 1,059 At 30 June 2026 (Unaudited) 15,761,675 – 577,089* (318,322)* 542,606* (37,102)* 119,918* 121,913* (778,460)* 319,504* 36,625,232* 52,934,053 8,183,564 61,117,617 * These reserve accounts comprise the consolidated reserves of RMB37,172,378,000 (31 December 2025: RMB36,302,246,000) in the consolidated statement of financial position.
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Integrating global resources and promoting industry development 133INTERIM REPORT INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the six months ended 30 June 2026 Attributable to ordinary shareholders of the parent Share capital Equity component of convertible bonds Capital reserve Shares held for the share award scheme Share-based compensation reserve Shares held for the share award scheme of a subsidiary Special reserve Reserve fund Hedging reserve Exchange fluctuation 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 RMB’000 (Note 20) (Note 21) (Note 21) (Note 21) (Note 21) (Note 21) At 1 January 2025 13,098,930 144,785 632,899 (546,009) 419,783 (37,938) 113,544 121,913 388,887 527,519 34,126,003 48,990,316 8,486,825 57,477,141 Profit for the period – – – – – – – – – – 2,163,585 2,163,585 24,843 2,188,428 Other comprehensive income for the period: Cash flow hedges, net of tax – – – – – – – – (1,144,399) – – (1,144,399) (1,330) (1,145,729) Exchange differences on translation of foreign operations – – – – – – – – – (13,588) – (13,588) (19,532) (33,120) Total comprehensive income – – – – – – – – (1,144,399) (13,588) 2,163,585 1,005,598 3,981 1,009,579 Final 2024 dividend declared (net of dividends received from shares held for the share award scheme) (Note 7) – – – – – – – – – – (1,175,451) (1,175,451) – (1,175,451) Transfer of share option reserve upon exercise of share options 52,563 – – – (7,885) – – – – – – 44,678 – 44,678 Recognition of equity-settled share-based payments – – – – 108,634 – – – – – – 108,634 (503) 108,131 Special reserve – safety fund appropriation – – – – – – 3,436 – – – (3,436) – – – Capital injection by non-controlling shareholders – – – – – – – – – – – – 23,134 23,134 Capital reduction by non-controlling shareholders – – – – – – – – – – – – (602) (602) Share of other reserves of investments accounted for using the equity method – – 9,138 – – – – – – – – 9,138 – 9,138 Disposal of subsidiaries – – (55,785) – – – – – – – – (55,785) 55,785 – Dividends declared to non-controlling shareholders – – – – – – – – – – – – (89,981) (89,981) Issue of shares upon conversion of convertible bonds 2,222,325 (144,513) – – – – – – – – – 2,077,812 – 2,077,812 Others – – (5,685) – – – – – – – – (5,685) – (5,685) At 30 June 2025 (Unaudited) 15,373,818 272 580,567* (546,009)* 520,532* (37,938)* 116,980* 121,913* (755,512)* 513,931* 35,110,701* 50,999,255 8,478,639 59,477,894
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Far East Horizon Limited ·2026 Interim Report 134 INTERIM REPORT INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS For the six months ended 30 June 2026 2026 2025 (Unaudited) (Unaudited) Notes RMB’000 RMB’000 CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax 4,097,810 4,011,925 Adjustments for: Finance costs 4,423,862 5,282,619 Bank interest income 4 (50,822) (96,574) Share of net profits of associates (58,506) (72,012) Share of net losses/(profits) of joint ventures 149,016 (100,391) Gains on unlisted debt investments, at fair value 4 (98) (18,978) Gains on disposal of property, plant and equipment, net (6,648) (82,386) Gains on disposal of subsidiaries 4 (29,884) (19,971) Losses on disposal of joint ventures 5 367 12,882 Depreciation of property, plant and equipment 1,574,737 1,496,024 Depreciation of investment properties 1,444 13,906 Depreciation of right-of-use assets 199,546 270,784 Provision for impairment of loans and accounts receivables 5 1,071,230 189,284 Impairment/(Reversal of impairment) of prepayments, other receivables and other assets 5 15,002 (31,055) Impairment of investment in joint ventures 5 68,397 179,065 Reversal of impairment of credit commitments 5 (13,095) (35,069) Impairment of goodwill 5 194,738 – Reversal of impairment of investment in associates 5 (6,936) – (Reversal of impairment)/Impairment of other assets 5 (63,771) 17,753 Amortisation of intangible assets and other assets 5 41,807 36,923 Equity-settled share-based payment expenses 5 159,239 108,131 Foreign exchange losses/(gains), net 5 22,805 (37,852) Interest expense on lease liabilities 37,048 16,587 Realised gains on derecognition of financial assets at fair value through profit or loss 4 (190,184) (200,184) Fair value gains from financial liabilities at fair value through profit or loss, net 5 (32,670) (10,608) Fair value gains from financial assets at fair value through profit or loss, net 5 (219,124) (367,031) 11,385,310 10,563,772
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Integrating global resources and promoting industry development 135INTERIM REPORT INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS For the six months ended 30 June 2026 2026 2025 (Unaudited) (Unaudited) Notes RMB’000 RMB’000 Decrease in inventories 27,843 43,082 Decrease in contract assets 43,772 56,346 Increase in loans and accounts receivables (12,159,854) (6,748,840) Decrease in prepayments, other receivables and other assets 844,424 546,985 (Increase)/Decrease in restricted cash (5,334) 172,568 Increase in trade and bills payables 471,840 109,781 Increase in other payables and accruals 1,652,726 290,089 (Decrease)/Increase in other liabilities (47,832) 830,902 Net cash flows from operating activities before tax and interest 2,212,895 5,864,685 Interest paid (4,812,113) (5,457,218) Interest received 50,822 96,574 Income tax paid (2,850,333) (2,328,011) Net cash flows used in operating activities (5,398,729) (1,823,970) CASH FLOWS FROM INVESTING ACTIVITIES Gains on unlisted debt investments, at fair value 4 98 18,978 Proceeds from disposal of property, plant and equipment 133,317 335,183 Purchase of items of property, plant and equipment, intangible assets and other long-term assets (1,069,010) (1,012,450) Proceeds from disposal of associates 80,000 – Proceeds from disposal of joint ventures 22,735 1,512 Purchase of shareholdings of associates (20,380) (380) Purchase of shareholdings of joint ventures (144,915) (2,057,203) Dividends received from associates 78,902 66,125 Realised gains on derecognition of financial assets at fair value through profit or loss 4 190,184 200,184 Proceeds from disposal of financial assets at fair value through profit or loss 3,068,341 3,142,720 Acquisition of subsidiaries (111,270) (209,547) Disposal of subsidiaries 171,063 104,532 Purchase of financial assets at fair value through profit or loss (1,671,015) (1,789,625) Net cash flows from/(used in) investing activities 728,050 (1,199,971)
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Far East Horizon Limited ·2026 Interim Report 136 INTERIM REPORT INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS For the six months ended 30 June 2026 2026 2025 (Unaudited) (Unaudited) Notes RMB’000 RMB’000 CASH FLOWS FROM FINANCING ACTIVITIES Cash received from exercise of share options 98,360 44,678 Capital injection from non-controlling shareholders 12,844 23,134 Capital reduction from non-controlling shareholders (28,068) (602) Purchase of non-controlling equity – (5,684) Cash received from borrowings 99,568,964 94,731,685 Repayments of borrowings (98,472,687) (92,434,020) Principal portion of lease payments (203,297) (217,607) Increase of pledged time deposits (50,773) (122,597) Dividends paid to non-controlling shareholders (23,510) (14,287) Realised fair value (losses)/gains from derivative financial instruments in hedges for borrowings (20,190) 693,218 Dividends paid to ordinary equity holders (1,279,739) (1,175,451) Net cash flows (used in)/from financing activities (398,096) 1,522,467 NET DECREASE IN CASH AND CASH EQUIVALENTS (5,068,775) (1,501,474) Cash and cash equivalents at beginning of period 21,375,169 19,786,521 Effect of exchange rate changes on cash and cash equivalents (81,186) 8,873 CASH AND CASH EQUIVALENTS AT END OF PERIOD 14 16,225,208 18,293,920
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Integrating global resources and promoting industry development 137INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 1. CORPORATE INFORMATION Far East Horizon Limited (the “Company ”) is a limited liability company which was incorporated in Hong Kong on 15 May 2008. Pursuant to the special resolutions dated 15 October 2008 and 29 November 2010, respectively, the Company changed its name from Fully Ascent Limited to Far Eastern Hong Xin Co., Limited, and then Far East Horizon Limited. The registered office address of the Company is Unit 6706B-6708A, 67/F, International Commerce Centre, 1 Austin Road West, Kowloon, Hong Kong. The Group is principally engaged in the provision of finance to its customers by a wide array of assets under finance lease arrangements, operating lease arrangements, entrusted loan arrangements, factoring, the provision of advisory services, equipment operation business, industrial operation business and other services as approved by the Ministry of Commerce of the People ’s Republic of China (the “PRC”). 2. BASIS OF PREPARATION AND ACCOUNTING POLICIES 2.1 Basis of preparation The interim condensed consolidated financial information for the six months ended 30 June 2026 has been prepared in accordance with HKAS 34 Interim Financial Reporting . The interim condensed consolidated financial information does not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group ’s annual consolidated financial statements for the year ended 31 December 2025. The financial information relating to the year ended 31 December 2025 that is included in the interim condensed consolidated statement of financial position as comparative information does not constitute the Company ’s statutory annual consolidated financial statements for that year but is derived from those financial statements. Further information relating to those statutory financial statements required to be disclosed in accordance with section 436 of the Hong Kong Companies Ordinance is as follows: The Company has delivered the financial statements for the year ended 31 December 2025 to the Registrar of Companies as required by section 662(3) of, and Part 3 of Schedule 6 to, the Hong Kong Companies Ordinance. The Company ’s auditors have reported on the financial statements for the year ended 31 December 2025. The auditor ’s report was unqualified; and did not contain a statement under section 406(2), 407(2) or 407(3) of the Hong Kong Companies Ordinance. The interim condensed consolidated financial information is presented in Renminbi ( “RMB”) and all values are rounded to the nearest thousand ( “RMB’000”) except when otherwise indicated.
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Far East Horizon Limited ·2026 Interim Report 138 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 2. BASIS OF PREPARATION AND ACCOUNTING POLICIES /parenleft.capCONTINUED/parenright.cap 2.2 Changes in accounting policies and disclosures The accounting policies adopted in the preparation of the interim condensed consolidated financial information are consistent with those applied in the preparation of the Group ’s annual consolidated financial statements for the year ended 31 December 2025, except for the adoption of the following amended HKFRS Accounting Standards for the first time for the current period ’s financial information. Amendments to HKFRS 9 and HKFRS 7 Amendments to the Classification and Measurement of Financial Instruments Amendments to HKFRS 9 and HKFRS 7 Contracts Referencing Nature-dependent Electricity Annual Improvements to HKFRS Accounting Standards – Volume 11 Amendments to HKFRS 1, HKFRS 7, HKFRS 9, HKFRS 10 and HKAS 7 The nature and impact of the amended HKFRS Accounting Standards are described below: Amendments to HKFRS 9 and HKFRS 7 Amendments to the Classification and Measurement of Financial Instruments clarify that a financial asset is derecognised when the entity ’s rights to the contractual cash flows expire or are transferred, while a financial liability is derecognised on the settlement date. The amendments introduce an accounting policy option to derecognise a financial liability that is settled through an electronic payment system before the settlement date if specified criteria are met. The amendments clarify how to assess the contractual cash flow characteristics of financial assets with environmental, social and governance and other similar contingent features. Moreover, the amendments clarify the requirements for classifying financial assets with non-recourse features and contractually linked instruments. The amendments also include additional disclosures for investments in equity instruments designated at fair value through other comprehensive income and financial instruments with contingent features. Since the Group ’s accounting policy for the derecognition of financial assets and liabilities in prior years aligned with the amendments and the Group did not have the financial assets that were addressed by the amendments, the amendments did not have any impact on the interim condensed consolidated financial information. Amendments to HKFRS 9 and HKFRS 7 Contracts Referencing Nature-dependent Electricity clarify the application of the “own-use ” requirements for in-scope contracts and amend the designation requirements for a hedged item in a cash flow hedging relationship for in-scope contracts. The amendments also include additional disclosures that enable users of financial statements to understand the effects these contracts have on an entity ’s financial performance and future cash flows. As the Group did not have any contracts that are in the scope of the amendments, the amendments did not have any impact on the interim condensed consolidated financial information.
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Integrating global resources and promoting industry development 139INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 2. BASIS OF PREPARATION AND ACCOUNTING POLICIES /parenleft.capCONTINUED/parenright.cap 2.2 Changes in accounting policies and disclosures (continued) Annual Improvements to HKFRS Accounting Standards – Volume 11 set out narrow scope amendments to HKFRS 1, HKFRS 7 (and the accompanying Guidance on implementing HKFRS 7 ), HKFRS 9, HKFRS 10 and HKAS 7. The amendments include clarifications, simplifications, corrections or changes to improve consistency in the corresponding HKFRS Accounting Standards. The amendments did not have any impact on the interim condensed consolidated financial information. 3. OPERATING SEGMENT INFORMATION For management purposes, the Group is organised into three operating segments, namely the financial, advisory, and other business, the equipment operation and the hospital operation, based on the internal organisational structure, management requirement and the internal reporting system: • The financial, advisory, and other business comprises (a) direct finance leasing; (b) sale-leaseback; (c) factoring; (d) entrusted loans; and (e) advisory services, etc. • The equipment operation comprises primarily (a) operating lease services; (b) engineering technical services; and (c) sales of equipment and materials related to operating lease services and engineering technical services; • The hospital operation comprises (a) medical engineering; and (b) hospital and healthcare management. Management monitors the operating results of the Group ’s business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment information is prepared in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Group. Segment revenue, results and assets mainly include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Intersegment transfers are transacted with reference to the selling prices used for sales made to third parties at the then prevailing market prices.
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Far East Horizon Limited ·2026 Interim Report 140 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 3. OPERATING SEGMENT INFORMATION /parenleft.capCONTINUED/parenright.cap As at and for the six months ended 30 June 2026 (unaudited) Financial, advisory, and other business Equipment operation Hospital operation Adjustments and eliminations Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Segment revenue: (Note 4) Sales to external customers 12,324,232 4,024,003 1,690,572 – 18,038,807 Intersegment sales 29,929 57 2,228 (32,214) – Cost of sales (4,150,595) (2,903,598) (1,399,820) – (8,454,013) Other income and gains 874,139 97,469 43,342 (14,690) 1,000,260 Selling and distribution costs and administrative expenses (3,295,047) (766,395) (351,816) 2,438 (4,410,820) Other expenses (419,300) (15,408) (9,315) – (444,023) Finance costs (136,299) (319,205) (56,288) 43,630 (468,162) Impairment losses on financial and contract assets (932,730) (63,842) (76,565) – (1,073,137) Losses on disposal of financial assets measured at amortised cost (592) – – – (592) Share of net profits of associates 58,478 – 28 – 58,506 Share of net losses of joint ventures (149,016) – – – (149,016) Profit/(loss) before tax 4,203,199 53,081 (157,634) (836) 4,097,810 Income tax expense (1,779,354) (16,479) (41,561) – (1,837,394) Profit/(loss) after tax 2,423,845 36,602 (199,195) (836) 2,260,416 Segment assets 338,340,367 35,802,004 5,705,565 (6,624,108) 373,223,828 Other segment information: Impairment losses recognised in the statement of profit or loss 930,424 63,842 271,299 – 1,265,565 Depreciation and amortisation 123,749 1,532,259 161,526 – 1,817,534 Capital expenditure 227,795 961,682 44,828 – 1,234,305
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Integrating global resources and promoting industry development 141INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 3. OPERATING SEGMENT INFORMATION /parenleft.capCONTINUED/parenright.cap As at and for the six months ended 30 June 2025 (unaudited) Financial, advisory, and other business Equipment operation Hospital operation Adjustments and eliminations Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Segment revenue: (Note 4) Sales to external customers 11,179,436 4,350,005 1,807,014 – 17,336,455 Intersegment sales 35,108 57 3,046 (38,211) – Cost of sales (4,807,826) (3,409,395) (1,469,490) – (9,686,711) Other income and gains 881,586 104,327 114,149 (17,637) 1,082,425 Selling and distribution costs and administrative expenses (2,927,591) (762,412) (210,641) 4,133 (3,896,511) Other expenses (255,085) (18,113) (10,362) – (283,560) Finance costs (170,087) (401,070) (67,789) 50,880 (588,066) (Impairment losses)/Reversal of impairment losses on financial and contract assets (246,200) 186,877 (63,837) – (123,160) Losses on disposal of financial assets measured at amortised cost (1,350) – – – (1,350) Share of net profits of associates 72,023 – (11) – 72,012 Share of net profits of joint ventures 100,391 – – – 100,391 Profit before tax 3,860,405 50,276 102,079 (835) 4,011,925 Income tax expense (1,774,280) (14,786) (34,431) – (1,823,497) Profit after tax 2,086,125 35,490 67,648 (835) 2,188,428 Segment assets 327,211,477 36,581,356 6,427,210 (6,420,426) 363,799,617 Other segment information: Impairment losses/(Reversal of impairment losses) recognised in the statement of profit or loss 438,937 (182,796) 63,837 – 319,978 Depreciation and amortisation 136,458 1,521,215 159,964 – 1,817,637 Capital expenditure 2,143,092 824,817 102,124 – 3,070,033
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Far East Horizon Limited ·2026 Interim Report 142 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 3. OPERATING SEGMENT INFORMATION /parenleft.capCONTINUED/parenright.cap Geographical information (a) Revenue from external customers For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) RMB’000 RMB’000 Chinese mainland 17,050,832 16,724,502 Saudi Arabia 250,796 179,930 The United Arab Emirates 223,215 106,811 Indonesia 182,888 127,348 Malaysia 102,495 66,676 Hong Kong 13,808 11,223 Other locations 214,773 119,965 Total 18,038,807 17,336,455 The revenue information above is based on the locations of the customers. (b) Non-current assets 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Chinese mainland 32,632,550 35,031,470 Saudi Arabia 1,287,921 1,322,954 The United Arab Emirates 1,103,642 885,505 Indonesia 575,991 696,178 Hong Kong 32,544 35,995 Other locations 1,668,611 1,160,192 Total 37,301,259 39,132,294
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Integrating global resources and promoting industry development 143INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 3. OPERATING SEGMENT INFORMATION /parenleft.capCONTINUED/parenright.cap Geographical information (continued) (b) Non-current assets (continued) The non-current asset information above is based on the locations of the assets and excludes financial instruments and deferred tax assets. Information about major customers There was no single customer from whom the revenue derived amounted to 10% or more of the total revenue of the Group during the period (six months ended 30 June 2025: Nil). 4. INTEREST INCOME, REVENUE FROM OPERATING LEASES, REVENUE FROM CONTRACTS WITH CUSTOMERS AND OTHER INCOME AND GAINS An analysis of interest income, revenue from operating leases, revenue from contracts with customers and other income and gains is as follows: For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) Note RMB’000 RMB’000 Interest income Interest income from finance leases, factoring and loans 11,585,263 10,594,309 Interest income from financial assets at fair value through profit or loss 36,279 62,941 Revenue from operating leases 2,961,691 2,926,173 Revenue from contracts with customers (i) 3,532,078 3,835,905 Tax and surcharges (76,504) (82,873) Total 18,038,807 17,336,455
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Far East Horizon Limited ·2026 Interim Report 144 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 4. INTEREST INCOME, REVENUE FROM OPERATING LEASES, REVENUE FROM CONTRACTS WITH CUSTOMERS AND OTHER INCOME AND GAINS /parenleft.capCONTINUED/parenright.cap Revenue from contracts with customers (i) Disaggregated revenue information For the six months ended 30 June 2026 Financial, advisory and other business Equipment operation Hospital operation Total Segments RMB’000 RMB’000 RMB’000 RMB’000 Types of goods or services Sale of goods – 277,746 – 277,746 Construction services – 769,486 – 769,486 Service fee income 543,150 – – 543,150 Healthcare service income – – 1,674,595 1,674,595 Education service income 113,761 – – 113,761 Chartering and brokerage income 475 – – 475 Other income 106,414 15,118 31,333 152,865 Total revenue from contracts with customers 763,800 1,062,350 1,705,928 3,532,078 Geographical markets Hong Kong 1,483 5,696 – 7,179 Chinese mainland 756,241 968,349 1,705,928 3,430,518 Other locations 6,076 88,305 – 94,381 Total revenue from contracts with customers 763,800 1,062,350 1,705,928 3,532,078 Timing of revenue recognition Goods or services transferred at a point in time 314,276 277,746 643,015 1,235,037 Services transferred over time 449,524 784,604 1,062,913 2,297,041 Total revenue from contracts with customers 763,800 1,062,350 1,705,928 3,532,078
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Integrating global resources and promoting industry development 145INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 4. INTEREST INCOME, REVENUE FROM OPERATING LEASES, REVENUE FROM CONTRACTS WITH CUSTOMERS AND OTHER INCOME AND GAINS /parenleft.capCONTINUED/parenright.cap Revenue from contracts with customers (continued) (i) Disaggregated revenue information (continued) For the six months ended 30 June 2025 Financial, advisory and other business Equipment operation Hospital operation Total Segments RMB’000 RMB’000 RMB’000 RMB’000 Types of goods or services Sale of goods – 285,094 – 285,094 Construction services – 1,138,882 – 1,138,882 Service fee income 433,249 – – 433,249 Healthcare service income – – 1,794,461 1,794,461 Education service income 104,204 – – 104,204 Chartering and brokerage income 8,015 – – 8,015 Other income 42,712 1,070 28,218 72,000 Total revenue from contracts with customers 588,180 1,425,046 1,822,679 3,835,905 Geographical markets Hong Kong 726 – – 726 Chinese mainland 586,673 1,371,065 1,822,679 3,780,417 Other locations 781 53,981 – 54,762 Total revenue from contracts with customers 588,180 1,425,046 1,822,679 3,835,905 Timing of revenue recognition Goods or services transferred at a point in time 262,174 285,094 713,576 1,260,844 Services transferred over time 326,006 1,139,952 1,109,103 2,575,061 Total revenue from contracts with customers 588,180 1,425,046 1,822,679 3,835,905
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Far East Horizon Limited ·2026 Interim Report 146 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 4. INTEREST INCOME, REVENUE FROM OPERATING LEASES, REVENUE FROM CONTRACTS WITH CUSTOMERS AND OTHER INCOME AND GAINS /parenleft.capCONTINUED/parenright.cap Revenue from contracts with customers (continued) (i) Disaggregated revenue information (continued) Set out below is the reconciliation of the revenue from contracts with customers to the amounts disclosed in the segment information: For the six months ended 30 June 2026 Financial, advisory and other business Equipment operation Hospital operation Total Segments RMB’000 RMB’000 RMB’000 RMB’000 Revenue from contracts with customers External customers 763,800 1,062,350 1,705,928 3,532,078 Intersegment sales 2,381 57 2,228 4,666 766,181 1,062,407 1,708,156 3,536,744 Intersegment adjustments and eliminations (2,381) (57) (2,228) (4,666) Total revenue from contracts with customers 763,800 1,062,350 1,705,928 3,532,078 For the six months ended 30 June 2025 Financial, advisory and other business Equipment operation Hospital operation Total Segments RMB’000 RMB’000 RMB’000 RMB’000 Revenue from contracts with customers External customers 588,180 1,425,046 1,822,679 3,835,905 Intersegment sales 1,891 57 3,046 4,994 590,071 1,425,103 1,825,725 3,840,899 Intersegment adjustments and eliminations (1,891) (57) (3,046) (4,994) Total revenue from contracts with customers 588,180 1,425,046 1,822,679 3,835,905
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Integrating global resources and promoting industry development 147INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 4. INTEREST INCOME, REVENUE FROM OPERATING LEASES, REVENUE FROM CONTRACTS WITH CUSTOMERS AND OTHER INCOME AND GAINS /parenleft.capCONTINUED/parenright.cap For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) Note RMB’000 RMB’000 Other income and gains Bank interest income 50,822 96,574 Gains on unlisted debt investments, at fair value 98 18,978 Gains on disposal of property, plant and equipment 10,557 83,171 Government grants 4a 118,527 122,628 Gains on disposal of subsidiaries 29,884 19,971 Interest income from continuing involvement in transferred assets – 42,321 Fair value gains from financial assets at fair value through profit or loss 533,722 410,013 Fair value gains from financial liabilities at fair value through profit or loss 32,670 28,131 Realised gains on financial assets at fair value through profit or loss 190,184 200,184 Foreign exchange gains, net – 37,852 Others 33,796 22,602 Total 1,000,260 1,082,425 4a. GOVERNMENT GRANTS For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) RMB’000 RMB’000 Government special subsidies 118,527 122,628
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Far East Horizon Limited ·2026 Interim Report 148 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 5. PROFIT BEFORE TAX The Group ’s profit before tax is arrived at after charging/(crediting): For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) RMB’000 RMB’000 Cost of borrowings (included in cost of sales) 3,992,748 4,711,141 Cost of inventories sold 269,836 244,571 Cost of construction contracts 626,103 967,664 Cost of operating leases 2,009,287 2,197,783 Cost of healthcare service 1,394,224 1,463,999 Cost of education service 59,275 57,472 Cost of others 102,540 44,081 Depreciation of property, plant and equipment Current period expenditure 87,894 91,250 Less: Government grants released** (732) (712) Total 87,162 90,538 Depreciation of right-of-use assets 66,166 63,651 Amortisation of intangible assets and other assets 41,807 36,923 Auditors ’ remuneration – other services 5,100 4,100 Employee benefit expense (including directors ’ remuneration) – Wages and salaries* Current period expenditure 3,069,671 2,387,915 Less: Government grants released** (598,429) (222,695) Total 2,471,242 2,165,220 – Equity-settled share-based payment expenses 159,239 108,131 – Pension scheme contributions 112,140 106,590 – Other employee benefits 206,862 200,594 2,949,483 2,580,535
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Integrating global resources and promoting industry development 149INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) RMB’000 RMB’000 Impairment of investment in joint ventures 68,397 179,065 Reversal of impairment of investment in associates (6,936) – Impairment of goodwill 194,738 – Impairment of loans and accounts receivables (Note 10) 1,071,230 189,284 Impairment/(reversal of impairment) of financial assets included in prepayments, other receivables and other assets 15,002 (31,055) Reversal of impairment of credit commitments (13,095) (35,069) (Reversal of impairment)/impairment of other assets (63,771) 17,753 Lease payments not included in the measurement of lease liabilities 40,861 37,157 Entertainment expenses 34,870 35,911 Business travelling expenses 151,708 145,664 Consultancy fees 132,442 145,610 Office expenses 41,170 25,904 Advertising and promotion expenses 21,479 33,649 Transportation expenses 63,263 72,824 Communication expenses 22,956 27,310 Litigation expenses 41,649 47,544 Other miscellaneous expenses: Current period expenditure 585,929 548,387 Less: Government grants released** (6,191) (16,950) Total 579,738 531,437 5. PROFIT BEFORE TAX /parenleft.capCONTINUED/parenright.cap The Group ’s profit before tax is arrived at after charging/(crediting): (continued)
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Far East Horizon Limited ·2026 Interim Report 150 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) RMB’000 RMB’000 Losses on disposal of property, plant and equipment 3,909 785 Donation 10,996 1,253 Bank commission expenses 8,495 5,295 Foreign exchange gains, net: Derivative gain or loss (recycled from equity under cash flow hedge) 2,067,497 (92,536) Foreign exchange (gains)/losses (2,044,692) 54,684 Total 22,805 (37,852) Losses on disposal of joint ventures 367 12,882 Fair value losses from financial assets at fair value through profit or loss 314,598 42,982 Fair value losses from financial liabilities at fair value through profit or loss – 17,523 Other expenditure 21,391 23,776 Finance costs 468,162 588,066 Losses on derecognition of loans and accounts receivables measured at amortised cost 592 1,350 Bank interest income (50,822) (96,574) Interest income from continuing involvement in transferred assets – (42,321) Fair value gains from financial assets at fair value through profit or loss (533,722) (410,013) Fair value gains from financial liabilities at fair value through profit or loss*** (32,670) (28,131) Realised gains on financial assets at fair value through profit or loss (190,184) (200,184) 5. PROFIT BEFORE TAX /parenleft.capCONTINUED/parenright.cap The Group ’s profit before tax is arrived at after charging/(crediting): (continued)
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Integrating global resources and promoting industry development 151INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 5. PROFIT BEFORE TAX /parenleft.capCONTINUED/parenright.cap The Group ’s profit before tax is arrived at after charging/(crediting): (continued) * The Group has adopted collective economic-gain bonus schemes (the “Schemes ”) since 2014. During the six months ended 30 June 2026, the Group did not pay any bonuses to the aforementioned plan (six months ended 30 June 2025: Nil), and no distribution was made to senior management and directors (six months ended 30 June 2025: Nil). In 2022, new trust schemes (the “2022 Trust Schemes ”) were established in the Chinese mainland and Hong Kong, respectively. The beneficiaries of the 2022 Trust Schemes comprised certain employees of the Group (including senior management) and directors. During the six months ended 30 June 2026, the Group did not pay any bonuses (six months ended 30 June 2025: Nil) to the 2022 Trust Schemes in the Chinese mainland, while paid bonuses of USD250,000,000 (six months ended 30 June 2025: USD250,000,000) to the 2022 Trust Schemes in Hong Kong. No distribution was made to senior management and directors under the 2022 Trust Schemes (six months ended 30 June 2025: Nil). Upon becoming aware of any forthcoming actual distribution or determination of allocation amounts under the aforementioned plans, the Group will disclose such information in accordance with the relevant requirements stipulated in the Listing Rules. ** Government grants have been received by subsidiaries of the Company from the local government for the improvement of technology, staff training and development, and others. The government grants received have been deducted from the expenses to which they related. Government grants received for which related expenditure has yet been undertaken are included in deferred revenue in the statement of financial position. *** The fair value gains from financial liabilities at fair value through profit or loss are accounted for the fair value change linked to the investments by limited partners other than the Group in several investment limited partnerships that are classified as financial liabilities in the consolidated financial statements of the Group. 6. INCOME TAX For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) RMB’000 RMB’000 Current – Hong Kong profits tax Charge for the period 68,593 33,172 Current – Chinese mainland – Income taxes Charge for the period 1,992,412 1,660,795 (Overprovision)/Underprovision in prior periods (16,932) 43,202 Deferred tax (Note 19) (206,679) 86,328 Total tax charge for the period 1,837,394 1,823,497
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Far East Horizon Limited ·2026 Interim Report 152 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 6. INCOME TAX /parenleft.capCONTINUED/parenright.cap Hong Kong profits tax Hong Kong profits tax has been provided at the rate of 16.5% (six months ended 30 June 2025: 16.5%) on the estimated assessable profits arising in Hong Kong for the period. Corporate Income Tax ( “CIT”) The income tax provision of the Group in respect of its operations in the Chinese mainland has been calculated at the tax rate of 25% (six months ended 30 June 2025: 25%) on the estimated assessable profits for the period, based on the existing legislation, interpretations and practices in respect thereof. The State Administration of Taxation announced that enterprises of the encouraged industries in the Western Region of the PRC can apply a preferential tax rate of 15% from 1 January 2011 to 31 December 2030. Deyang The Fifth Hospital Co., Ltd., Chongqing Yudong Hospital Co., Ltd., Nayong Xinli Hospital Co., Ltd. and Chengdu Jinsha Hospital Co., Ltd. have been identified as having fulfilled the criteria of the aforesaid preferential taxation policy and thus have enjoyed a preferential tax rate of 15% since 2016. Zhaotong Renan Hospital Co., Ltd. and Qiaojia Renan Hospital Co., Ltd. have been identified as having fulfilled the criteria of the aforesaid preferential taxation policy and thus have enjoyed a preferential tax rate of 15% since 2017. Qinghai Kangle Hospital Company Ltd. has been identified as having fulfilled the criteria of the aforesaid preferential taxation policy and thus has enjoyed a preferential tax rate of 15% since 2020. Lichuan Hongxin Hexie Hospital Company Ltd. was recognised to fulfil the requirement of the aforesaid preferential taxation policy and thus has enjoyed a preferential tax rate of 15% since 2025. Shanghai Horizon Equipment & Engineering Co., Ltd. was accredited as High and New Technology Enterprise (the “HNTE”) since 2015, while Guangzhou Hongtu Equipment & Engineering Co., Ltd. was accredited as HNTE since 2020, and both of them were entitled to a preferential PRC corporate income tax rate of 15% thereafter. The HNTE certificates of Shanghai Horizon Equipment & Engineering Co., Ltd. and Guangzhou Hongtu Equipment & Engineering Co., Ltd. need to be renewed every three years in order to enable to enjoy the reduced tax rate of 15%. Shanghai Horizon Equipment & Engineering Co., Ltd. was entitled to a tax rate of 15% till 26 December 2027 and is expected to continue to enjoy this thereafter. Guangzhou Hongtu Equipment & Engineering Co., Ltd. was entitled to a tax rate of 15% till 28 December 2026 and is expected to continue to enjoy this thereafter.
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Integrating global resources and promoting industry development 153INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 6. INCOME TAX /parenleft.capCONTINUED/parenright.cap Corporate Income Tax ( “CIT”) (continued) A reconciliation of the tax expense/(credit) applicable to profit before tax using the statutory/applicable tax rates for the jurisdictions in which the Company and the majority of its subsidiaries are domiciled to the tax expense at the effective tax rate is as follows: For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) RMB’000 RMB’000 Profit before tax 4,097,810 4,011,925 Tax at the statutory income tax rates 1,166,171 1,220,206 Expenses not deductible for tax 511,370 595,293 Income not subject to tax (116,082) (282,748) (Overprovision)/Underprovision in prior periods (16,932) 43,202 Utilisation of previously unrecognised tax losses (18,360) (8,487) Unrecognised tax losses and deductible temporary differences 130,365 87,513 Effect of withholding tax on the distributable profits of the Group ’s PRC subsidiaries 131,294 150,001 Effect of withholding tax on interest on intra-group balances 49,568 18,517 Income tax expense as reported in the interim condensed consolidated statement of profit or loss 1,837,394 1,823,497 Pillar Two income taxes The Group is within the scope of Pillar Two model rules. The Group has assessed its potential exposure based on the information available regarding the financial performance of the Group in the current period. As such, it may not be entirely representative of future circumstances. Based on the assessment, the Group should benefit from the transitional safe harbour for all of the jurisdictions in which the Group operates. Therefore, the Group does not expect potential exposure to Pillar Two “top-up ” taxes.
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Far East Horizon Limited ·2026 Interim Report 154 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 7. DIVIDENDS For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) RMB’000 RMB’000 Dividends 1,279,739 1,175,451 Pursuant to a resolution passed at the general meeting on 10 June 2026, the Company declared a final dividend of HKD0.31 per share in respect of the year ended 31 December 2025 to its shareholders whose names appear on the register of members of the Company on 18 June 2026. Based on the total number of outstanding ordinary shares of 4,748,320,997 (after excluding the 69,786,650 shares held for the share award scheme), cash dividends declared of approximately HKD1,471,979,000 (equivalent to RMB1,279,739,000) were recognised in the financial statements. 8. EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT The calculation of basic earnings per share for the six months ended 30 June 2026 is based on the consolidated net profit for the period attributable to ordinary equity holders of the parent and the weighted average number of ordinary shares of 4,737,217,820 (six months ended 30 June 2025: 4,239,083,563) outstanding during the period. The calculation of the diluted earnings per share amount is based on the consolidated net profit for the period attributable to ordinary equity holders of the parent, adjusted to reflect the interest on the host debt component of convertible bonds. The weighted average number of ordinary shares used in the calculation is the number of ordinary shares outstanding during the period, as used in the basic earnings per share calculation, and the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares.
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Integrating global resources and promoting industry development 155INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 8. EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT /parenleft.capCONTINUED/parenright.cap The calculations of basic and diluted earnings per share are based on: Earnings For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) RMB’000 RMB’000 Profit attributable to ordinary equity holders of the parent, used in the basic earnings per share calculation 2,221,547 2,163,585 Interest on the host debt component of convertible bonds – 17,458 Profit attributable to ordinary equity holders of the parent, before the above impact arising from convertible bonds 2,221,547 2,181,043 Shares Number of shares For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) Weighted average number of ordinary shares outstanding during the period, used in the basic earnings per share calculation 4,737,217,820 4,239,083,563 Effect of dilution – weighted average number of ordinary shares: Share options 7,986,454 1,151,255 Convertible bonds 404,983 408,982,818 Weighted average number of ordinary shares for diluted earnings per share 4,745,609,257 4,649,217,636
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Far East Horizon Limited ·2026 Interim Report 156 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 9. PROPERTY, PLANT AND EQUIPMENT During the six months ended 30 June 2026, the Group acquired items of property, plant and equipment at a total cost of RMB1,015,203,000, including those through acquisition of subsidiaries (six months ended 30 June 2025: RMB1,131,672,000). Property, plant and equipment with a net book value of RMB97,327,000 were disposed of by the Group during the six months ended 30 June 2026 (six months ended 30 June 2025: RMB234,109,000), resulting in a net gain of disposal of RMB6,648,000 (six months ended 30 June 2025: a net gain of disposal of RMB82,386,000). As at 30 June 2026, the Group had not obtained the property ownership certificate for one batch of buildings with a net book value of RMB1,216,000 (31 December 2025: RMB4,134,000). The Group was in the process of applying for the property ownership certificates for the above buildings as at 30 June 2026. As at 30 June 2026, property, plant and equipment with a net carrying amount of RMB6,162,436,000 (31 December 2025: RMB7,411,336,000) were pledged to secure general banking facilities granted to the Group (Note 18(d)). 10. LOANS AND ACCOUNTS RECEIVABLES 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Loans and accounts receivables due within 1 year 162,223,996 159,010,646 Loans and accounts receivables due after 1 year 121,622,146 114,508,897 Total 283,846,142 273,519,543
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Integrating global resources and promoting industry development 157INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 10. LOANS AND ACCOUNTS RECEIVABLES /parenleft.capCONTINUED/parenright.cap 10a. Loans and accounts receivables by nature 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Lease receivables (Note 10b)* 291,223,502 277,746,503 Less: Unearned finance income (25,710,766) (24,604,747) Net lease receivables (Note 10b) 265,512,736 253,141,756 Interest receivables* 2,092,987 2,014,905 Factoring receivable (Note 10g) 8,906,780 10,695,146 Entrusted loans (Note 10h) 730,336 970,860 Long-term receivables* 3,147,354 3,073,443 Secured loans 1,155,963 761,176 Subtotal of interest-earning assets (Note 10c)** 281,546,156 270,657,286 Less: Provision for lease receivables (5,853,492) (5,882,810) Provision for factoring receivables (281,610) (315,122) Provision for entrusted loans (161,879) (113,719) Provision for long-term receivables (41,477) (26,566) Provision for secured loans (8,442) (5,595) Provision for interest-earning assets (Note 10d)** (6,346,900) (6,343,812) Notes receivable, net 996,810 1,774,084 Accounts receivable (Note 10e) 9,362,756 9,028,378 Provision for accounts receivable (Note 10f) (1,712,680) (1,596,393) Total of loans and accounts receivables 283,846,142 273,519,543 * These balances included balances with related parties which are disclosed in Note 10j. ** These balances are included in the interest-earning assets disclosed in Note 10c and Note 10d.
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Far East Horizon Limited ·2026 Interim Report 158 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 10. LOANS AND ACCOUNTS RECEIVABLES /parenleft.capCONTINUED/parenright.cap 10b (1). An ageing analysis of lease receivables, determined based on the ageing of the receivables since the effective date of the relevant lease contracts, as at the end of the reporting period is as follows: 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Lease receivables: Within 1 year 191,738,768 187,281,763 1 to 2 years 76,221,366 67,461,775 2 to 3 years 15,834,040 13,941,307 3 to 5 years 7,429,328 9,061,658 Total 291,223,502 277,746,503 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Net lease receivables: Within 1 year 173,194,009 168,865,808 1 to 2 years 70,543,046 62,853,623 2 to 3 years 15,047,629 13,176,600 3 to 5 years 6,728,052 8,245,725 Total 265,512,736 253,141,756
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Integrating global resources and promoting industry development 159INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 10. LOANS AND ACCOUNTS RECEIVABLES /parenleft.capCONTINUED/parenright.cap 10b (2). The table below illustrates the gross and net amounts of lease receivables the Group expects to receive in the following five or more than five consecutive accounting years: 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Lease receivables: Due within 1 year 164,767,897 159,515,203 Due in 1 to 2 years 89,807,402 83,921,172 Due in 2 to 3 years 33,457,560 30,317,202 Due in 3 to 5 years 3,190,643 3,988,209 Due after 5 years – 4,717 Total 291,223,502 277,746,503 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Net lease receivables: Due within 1 year 147,636,999 143,073,773 Due in 1 to 2 years 82,990,801 77,521,247 Due in 2 to 3 years 31,828,430 28,731,755 Due in 3 to 5 years 3,056,506 3,810,290 Due after 5 years – 4,691 Total 265,512,736 253,141,756 There was no unguaranteed residual value in connection with finance lease arrangements or contingent lease arrangements of the Group that need to be recorded as at the end of the reporting period. As at 30 June 2026, the Group ’s lease receivables pledged or charged as security for the Group ’s bank and other borrowings amounted to RMB50,497,988,000 (31 December 2025: RMB47,335,335,000) (Note 18(a)).
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Far East Horizon Limited ·2026 Interim Report 160 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 10. LOANS AND ACCOUNTS RECEIVABLES /parenleft.capCONTINUED/parenright.cap 10c. Analysis of interest-earning assets Stage I (12-month ECL) Stage II (Lifetime ECL) Stage III (Lifetime ECL – impaired) Total (Unaudited) (Unaudited) (Unaudited) (Unaudited) RMB’000 RMB’000 RMB’000 RMB’000 As at 30 June 2026 Interest-earning assets 267,926,395 10,832,258 2,787,503 281,546,156 Allowance for impairment losses (2,840,535) (2,087,661) (1,418,704) (6,346,900) Interest-earning assets, net 265,085,860 8,744,597 1,368,799 275,199,256 Stage I (12-month ECL) Stage II (Lifetime ECL) Stage III (Lifetime ECL – impaired) Total (audited) (audited) (audited) (audited) RMB’000 RMB’000 RMB’000 RMB’000 As at 31 December 2025 Interest-earning assets 257,438,680 10,428,784 2,789,822 270,657,286 Allowance for impairment losses (2,821,466) (1,958,364) (1,563,982) (6,343,812) Interest-earning assets, net 254,617,214 8,470,420 1,225,840 264,313,474 10d. Movements in provision for interest-earning assets The Group has applied the general approach to providing for expected credited losses ( “ECLs”) prescribed by HKFRS 9, which permits the use of either a twelve-month basis or a lifetime basis to record expected credit losses based on an expected credit loss model for interest-earning assets. The Group has conducted an assessment of ECLs according to forward-looking information and used appropriate models and a large number of assumptions in its expected measurement of credit losses. These models and assumptions relate to the future macroeconomic conditions and borrower ’s creditworthiness (e.g., the likelihood of default by customers and the corresponding losses). The Group has adopted judgement, assumptions and estimation techniques in order to measure ECLs according to the requirements of accounting standards such as criteria for judging significant increases in credit risk, definition of credit-impaired financial assets, parameters for measuring ECLs and forward-looking information.
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Integrating global resources and promoting industry development 161INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 10. LOANS AND ACCOUNTS RECEIVABLES /parenleft.capCONTINUED/parenright.cap 10d. Movements in provision for interest-earning assets (continued) For the six months ended 30 June 2026 Stage I (12-month ECL) Stage II (Lifetime ECL) Stage III** (Lifetime ECL – impaired) Total (Unaudited) (Unaudited) (Unaudited) (Unaudited) RMB’000 RMB’000 RMB’000 RMB’000 At the beginning of the period 2,821,466 1,958,364 1,563,982 6,343,812 Impairment losses for the period 157,310* 332,874 437,271 927,455 Conversion to Stage I 31,927 (31,927) – – Conversion to Stage II (170,668) 170,668 – – Conversion to Stage III – (342,318) 342,318 – Write-off – – (1,171,826) (1,171,826) Recoveries of interest-earning assets previously written off – – 246,959 246,959 Exchange differences 500 – – 500 At the end of the period 2,840,535 2,087,661 1,418,704 6,346,900
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Far East Horizon Limited ·2026 Interim Report 162 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 10. LOANS AND ACCOUNTS RECEIVABLES /parenleft.capCONTINUED/parenright.cap 10d. Movements in provision for interest-earning assets (continued) Year ended 31 December 2025 Stage I (12-month ECL) Stage II (Lifetime ECL) Stage III** (Lifetime ECL – impaired) Total (Audited) (Audited) (Audited) (Audited) RMB’000 RMB’000 RMB’000 RMB’000 At the beginning of the year 2,243,025 2,212,423 1,866,617 6,322,065 Impairment losses for the year 905,265* 77,693 (139,078) 843,880 Conversion to Stage I 13,804 (13,804) – – Conversion to Stage II (342,156) 390,572 (48,416) – Conversion to Stage III – (708,520) 708,520 – Write-off – – (1,405,460) (1,405,460) Recoveries of interest-earning assets previously written off – – 581,799 581,799 Exchange differences 1,528 – – 1,528 At the end of the year 2,821,466 1,958,364 1,563,982 6,343,812 * This includes a loss allowance of RMB1,227,188,000 (31 December 2025: RMB2,543,543,000) provided for newly originated interest-earning assets, and RMB1,069,878,000 (31 December 2025: RMB1,638,278,000) reversed as a result of repayment of existing interest-earning assets. ** The majority of the interest-earning assets are finance lease receivables, under which the lessor owns the related leased assets, so the finance leases are similar to secured lending. Among these interest-earning assets, 97% (31 December 2025: 97%) (in terms of carrying amount) of the credit-impaired assets falling in stage 3 in the table above are finance lease receivables, and hence, the related leased assets are owned by the Group. Such leased assets are similar to security and constitute the main source of collection of impaired assets.
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Integrating global resources and promoting industry development 163INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 10. LOANS AND ACCOUNTS RECEIVABLES /parenleft.capCONTINUED/parenright.cap 10e. An ageing analysis of accounts receivable as at the end of the reporting period is as follows: Accounts receivable are non-interest-earning and are generally on 60-day terms, while the credit terms for major customers can be extended to 180 days. 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Within 1 year 5,635,564 5,639,786 More than 1 year 3,727,192 3,388,592 Total 9,362,756 9,028,378 10f. Movements in provision for accounts receivable 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 At the beginning of period/year 1,596,393 1,637,436 Charge for the period/year 143,775 176,381 Write-off (27,488) (217,424) At the end of period/year 1,712,680 1,596,393 An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit losses. The provision rates are based on ageing for groupings of various customer segments with similar loss patterns.
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Far East Horizon Limited ·2026 Interim Report 164 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 10. LOANS AND ACCOUNTS RECEIVABLES /parenleft.capCONTINUED/parenright.cap 10f. Movements in provision for accounts receivable (continued) Set out below is the information about the credit risk exposure on the Group ’s accounts receivable using a provision matrix: As at 30 June 2026 Ageing Within 1 year 1-2 years 2-3 years 3-5 years Total (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Gross carrying amount (RMB ’000) 5,635,564 2,092,624 1,007,246 627,322 9,362,756 Expected credit loss (RMB ’000) 583,071 420,902 377,607 331,100 1,712,680 Average expected credit loss rate 10.35% 20.11% 37.49% 52.78% 18.29% As at 31 December 2025 Ageing Within 1 year 1-2 years 2-3 years 3-5 years Total (Audited) (Audited) (Audited) (Audited) (Audited) Gross carrying amount (RMB ’000) 5,639,786 2,057,673 811,552 519,367 9,028,378 Expected credit loss (RMB ’000) 500,552 461,209 341,147 293,485 1,596,393 Average expected credit loss rate 8.88% 22.41% 42.04% 56.51% 17.68% 10g. An ageing analysis of factoring receivables as at the end of the reporting period is as follows: 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Within 1 year 5,800,743 8,006,601 More than 1 year 3,106,037 2,688,545 Total 8,906,780 10,695,146
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Integrating global resources and promoting industry development 165INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 10. LOANS AND ACCOUNTS RECEIVABLES /parenleft.capCONTINUED/parenright.cap 10h (1). An ageing analysis of entrusted loans, determined based on the ageing of the receivables since the effective dates of the relevant loan contracts, as at the end of the reporting period is as follows: 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Entrusted loans: Within 1 year 2,328 200,003 1 to 2 years – 42,988 2 to 3 years 69,979 34,854 3 to 5 years 639,692 674,902 Over 5 years 18,337 18,113 Total 730,336 970,860 10h (2). The table below illustrates the amounts of entrusted loans which the Group expects to receive in the following five or more than five consecutive accounting years: 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Entrusted loans: Due within 1 year 260,746 368,674 Due in 1 to 2 years 469,590 597,849 Due in 2 to 3 years – 4,337 Total 730,336 970,860 10i. Long-term receivables As at 30 June 2026, the carrying value of long term receivables pledged or charged as collateral for the Group ’s borrowings amounted to RMB9,086,000 (31 December 2025: RMB227,848,000) (Note 18(b)).
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Far East Horizon Limited ·2026 Interim Report 166 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 10. LOANS AND ACCOUNTS RECEIVABLES /parenleft.capCONTINUED/parenright.cap 10j. Balances with related parties 30 June 2026 31 December 2025 (Unaudited) (Audited) Note RMB’000 RMB’000 Joint ventures: – Guangzhou Kangda Industrial Technology Co., Ltd. Long term receivables (i) 240,280 190,920 Interest receivables 2,201 818 – Ziyang Yuyi Construction Investment Co., Ltd. Long-term receivables (i) 92,654 92,654 Interest receivables 10,459 8,060 – Guixi Hongye Infrastructure Investment Co., Ltd. Long-term receivables (i) 51,750 26,000 Interest receivables 985 56 – Chengdu Jinlanrui City Construction and Development Co., Ltd. Long-term receivables (i) 200,106 200,106 Interest receivables 20,856 12,807 – Guixi Hongyu Infrastructure Investment Co., Ltd. Long-term receivables (i) 22,850 3,000 Interest receivables 228 6 – Deyang Hongbo Construction Investment Co., Ltd. Long-term receivables (i) 62,540 10,640 Interest receivables 948 84 – Wuhan Hongye Construction and Development Co., Ltd. Long-term receivables (i) 28,000 28,000 Interest receivables – –
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Integrating global resources and promoting industry development 167INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 30 June 2026 31 December 2025 (Unaudited) (Audited) Note RMB’000 RMB’000 – Suzhou Hongcheng City Development Co., Ltd. Long-term receivables (i) 5,355 5,355 Interest receivables 149 15 – Hangzhou Hongqian City Development Construction Co., Ltd. Long-term receivables (i) 271,824 219,324 Interest receivables 8,147 3,078 – Beijing Xingzhu Real Estate Development Co., Ltd. Long-term receivables (i) – 70,000 Interest receivables – 1,166 – Hangzhou Hongchen City Construction Development Co., Ltd. Long-term receivables (i) 193,564 53,533 Interest receivables 2,652 607 – Hangzhou Jiehan City Development and Construction Co., Ltd. Long-term receivables (i) 277,522 76,256 Interest receivables 2,759 438 – Shanghai Jielang Enterprise Management Co., Ltd. Long-term receivables (i) 8 8 Interest receivables – – Provision (12,914) (8,569) Total 1,482,923 994,362 (i) Balances of long-term receivables were interest-earning at annual interest rate ranging from 3% to 8% (31 December 2025: from 3% to 8%). 10. LOANS AND ACCOUNTS RECEIVABLES /parenleft.capCONTINUED/parenright.cap 10j. Balances with related parties (continued)
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Far East Horizon Limited ·2026 Interim Report 168 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 11. DERIVATIVE FINANCIAL INSTRUMENTS 30 June 2026 31 December 2025 Assets Liabilities Assets Liabilities (Unaudited) (Unaudited) (Audited) (Audited) RMB’000 RMB’000 RMB’000 RMB’000 Cross-currency interest rate swaps 81,439 (2,869,390) 320,419 (1,215,243) Forward currency contracts – (106,308) – (71,857) Interest rate swaps 661 (9,602) 189 (25,177) Total 82,100 (2,985,300) 320,608 (1,312,277) Portion classified as non-current: Cross-currency interest rate swaps – (2,216,257) 71,745 (985,668) Forward currency contracts – (3,554) – (2,379) Interest rate swaps 589 (1,968) 160 (12,628) 589 (2,221,779) 71,905 (1,000,675) Current portion 81,511 (763,521) 248,703 (311,602) Total 82,100 (2,985,300) 320,608 (1,312,277) Cash flow hedges under HKFRS 9 At 30 June 2026, the Group designated 178 (31 December 2025: 154) cross-currency interest rate swaps, 30 (31 December 2025: 39) forward currency contracts and 52 (31 December 2025: 71) interest rate swaps as hedges of future cash flows arising from foreign and local currency borrowings, details of which are as follows: At 30 June 2026, the Group had 47 (31 December 2025: 44) cross-currency interest rate swaps in place with notional amounts of HKD15,196,892,000 (31 December 2025: HKD19,777,120,000) whereby the Group receives a floating rate of interest on the HKD notional amount at HKD-HIBOR-HKAB and pays a fixed rate of interest on the RMB notional amount at 2.45% to 4.51% (31 December 2025: 2.45% to 4.51%) per annum. The swaps are being used to hedge the foreign currency and interest rate exposure of 47 floating rate borrowings denominated in HKD with the total principal of HKD15,196,892,000 (31 December 2025: HKD19,777,120,000).
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Integrating global resources and promoting industry development 169INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 11. DERIVATIVE FINANCIAL INSTRUMENTS /parenleft.capCONTINUED/parenright.cap Cash flow hedges under HKFRS 9 (continued) At 30 June 2026, the Group had 3 (31 December 2025: 3) cross-currency interest rate swaps in place with notional amounts of HKD450,000,000 (31 December 2025: HKD450,000,000) whereby the Group receives a fixed rate of interest on the HKD notional amount at 3.60% to 4.00% (31 December 2025: 3.60% to 4.00%) per annum and pays a fixed rate of interest on the RMB notional amount at 2.70% to 3.02% (31 December 2025: 2.70% to 3.02%) per annum. The swaps are being used to hedge the foreign currency and interest rate exposure of 3 fixed rate borrowing denominated in HKD with the total principal of HKD450,000,000 (31 December 2025: HKD450,000,000). At 30 June 2026, the Group had 37 (31 December 2025: 33) cross-currency interest rate swaps in place with notional amounts of USD1,505,016,000 (31 December 2025: USD1,310,016,000) whereby the Group receives a floating rate of interest on the USD notional amount at USD-SOFR and pays a fixed rate of interest on the RMB notional amount at 2.50% to 4.15% (31 December 2025: 2.50% to 4.55%) per annum. The swaps are being used to hedge the foreign currency and interest rate exposure of 37 floating rate borrowings denominated in USD with the total principal of USD1,505,016,000 (31 December 2025: USD1,310,016,000). At 30 June 2026, the Group had 64 (31 December 2025: 46) cross-currency interest rate swaps in place with notional amounts of USD2,551,909,000 (31 December 2025: USD1,881,000,000) whereby the Group receives a fixed rate of interest on the USD notional amount at 3.90% to 6.63% (31 December 2025: 4.25% to 6.63%) per annum and pays a fixed rate of interest on the RMB notional amount at 2.11% to 5.99% (31 December 2025: 3.00% to 5.99%) per annum. The swaps are being used to hedge the foreign currency and interest rate exposure of 64 fixed rate borrowings denominated in USD with the total principal of USD2,551,909,000 (31 December 2025: USD1,881,000,000). At 30 June 2026, the Group had 2 (31 December 2025: 2) cross-currency interest rate swaps in place with notional amounts of JPY30,600,000,000 (31 December 2025: JPY30,600,000,000) whereby the Group receives floating rate interest on the JPY notional amount at JPY-TONA and pays a fixed rate interest on the RMB notional amount at 3.08% (31 December 2025: 3.08%) per annum. The swaps are being used to hedge the foreign currency and interest rate exposure of 2 floating rate borrowings denominated in JPY with the principal of JPY 30,600,000,000 (31 December 2025: JPY30,600,000,000).
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Far East Horizon Limited ·2026 Interim Report 170 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 11. DERIVATIVE FINANCIAL INSTRUMENTS /parenleft.capCONTINUED/parenright.cap Cash flow hedges under HKFRS 9 (continued) At 30 June 2026, the Group had 6 (31 December 2025: 5) cross-currency interest rate swaps in place with notional amounts of JPY27,983,845,000 (31 December 2025: JPY18,200,000,000) whereby the Group receives a fixed rate interest on the JPY notional amount at 1.17% to 2.05% (31 December 2025: 1.20% to 2.05%) and pays a fixed rate interest on the RMB notional amount at 2.15% to 4.98% (31 December 2025: 2.60% to 4.98%) per annum. The swaps are being used to hedge the foreign currency and interest rate exposure of 6 fixed rate borrowings denominated in JPY with the principal of JPY27,983,845,000 (31 December 2025: JPY18,200,000,000). At 30 June 2026, the Group had 9 (31 December 2025: 9) cross-currency interest rate swaps in place with notional amounts of EUR280,300,000 (31 December 2025: EUR280,300,000) whereby the Group receives interest at floating rates on the EUR notional amount at EURIBOR and pays interest at fixed rates on the RMB notional amount at 3.16% to 3.99% (31 December 2025: 3.16% to 3.99%) per annum. The swaps are being used to hedge the foreign currency and interest rate exposure of 9 floating rate borrowings denominated in EUR with the total principal of EUR280,300,000 (31 December 2025: EUR280,300,000). At 30 June 2026, the Group had 1 (31 December 2025: 4) cross-currency interest rate swap in place with a notional amount of EUR105,000 (31 December 2025: EUR155,568,000) whereby the Group receives a fixed rate of interest on the EUR notional amount at 3.60% (31 December 2025: 3.60% to 3.95%) per annum and pays a fixed rate of interest on the RMB notional amount at 4.25% (31 December 2025: 4.25% to 4.80%) per annum. The swap is being used to hedge the foreign currency and interest rate exposure of 1 fixed rate borrowing denominated in EUR with the principal of EUR105,000 (31 December 2025: EUR155,568,000). At 30 June 2026, the Group had 9 (31 December 2025: 8) cross-currency interest rate swaps in place with notional amounts of AED1,449,450,000 (31 December 2025: AED1,339,350,000) whereby the Group receives interest at floating rates on the AED notional amount at EIBOR and pays interest at fixed rates on the RMB notional amount at 3.21% to 4.60% (31 December 2025: 3.22% to 4.60%) per annum. The swaps are being used to hedge the foreign currency and interest rate exposure of 9 floating rate borrowings denominated in AED with the total principal of AED1,449,450,000 (31 December 2025: AED1,339,350,000).
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Integrating global resources and promoting industry development 171INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 11. DERIVATIVE FINANCIAL INSTRUMENTS /parenleft.capCONTINUED/parenright.cap Cash flow hedges under HKFRS 9 (continued) At 30 June 2026, the Group had 9 (31 December 2025: 13) forward currency contracts with notional amounts of USD351,432,000 (31 December 2025: USD610,952,000) as hedges of future cash flows arising from foreign currency borrowings with the total principal of USD351,432,000 (31 December 2025: USD610,952,000) which will be settled in USD. At 30 June 2026, the Group had 1 (31 December 2025: 2) forward currency contract with a notional amount of HKD200,000,000 (31 December 2025: HKD450,000,000) as hedge of future cash flows arising from a foreign currency borrowing with the principal of HKD200,000,000 (31 December 2025: HKD450,000,000) which will be settled in HKD. At 30 June 2026, the Group had 1 (31 December 2025: 1) forward currency contract with a notional amount of JPY1,426,000,000 (31 December 2025: JPY3,424,385,000) as hedge of future cash flows arising from a foreign currency borrowing with the principal of JPY1,426,000,000 (31 December 2025: JPY3,424,385,000) which will be settled in JPY. At 30 June 2026, the Group had 19 (31 December 2025: 23) forward currency contracts with notional amounts of EUR50,794,000 (31 December 2025: EUR55,950,000) as hedge of future cash flows arising from foreign currency borrowings with the total principal of EUR50,794,000 (31 December 2025: EUR55,950,000) which will be settled in EUR. At 30 June 2026, the Group had 52 (31 December 2025: 70) interest rate swaps in place with notional amounts of RMB8,076,069,000 (31 December 2025: RMB13,749,967,000) whereby the Group receives interest at variable rates based on the Loan Prime Rate on the notional amount and pays interest at fixed rates on the RMB notional amount at 2.65% to 3.85% (31 December 2025: 2.65% to 3.85%) per annum. The swaps are being used to hedge interest rate exposure of 52 floating rate borrowings denominated in RMB with the principal of RMB8,076,069,000 (31 December 2025: RMB13,749,967,000). There is an economic relationship between the hedged items and the hedging instruments as the terms of the cross-currency interest rate swaps, forward currency contracts and interest rate swaps match the terms of the borrowing contracts (i.e., the notional amount, expected payment date and interest rate). The Group has established a hedge ratio of 1:1 for the hedging relationships as the underlying risks of the cross-currency interest rate swaps, forward currency contracts and interest rate swaps are identical to the hedged risk components. To measure the hedge effectiveness, the Group uses the hypothetical derivative method and compares the changes in the fair value of the hedging instruments against the changes in fair value of the hedged items attributable to the hedged risks.
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Far East Horizon Limited ·2026 Interim Report 172 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 11. DERIVATIVE FINANCIAL INSTRUMENTS /parenleft.capCONTINUED/parenright.cap Cash flow hedges under HKFRS 9 (continued) Hedge ineffectiveness can arise from: • Differences in the timing of the cash flows of the hedged items and the hedging instruments • Different interest rate curves applied to discount the hedged items and hedging instruments • The counterparties ’ credit risks differently impacting the fair value movements of the hedging instruments and hedged items The Group holds the following cross-currency interest rate swaps, forward currency contracts and interest rate swaps: Maturity Less than 3 months 3 to 6 months 6 to 9 months 9 to 12 months 1 to 2 years 2 to 5 years Total As at 30 June 2026 Cross-currency interest rate swaps Notional amount (in RMB ’000) 74,085 1,904,800 1,285,065 3,963,526 7,709,446 13,752,065 28,688,987 Average forward exchange rate (USD/RMB) 7.1605 6.5837 7.0402 7.2281 7.1857 7.0719 Notional amount (in RMB ’000) 547,830 322,669 2,051,932 – 4,620,243 6,759,480 14,302,154 Average forward exchange rate (HKD/RMB) 0.9162 0.9167 0.9264 – 0.9179 0.9060 Notional amount (in RMB ’000) – 280,170 430,000 – 215,253 1,737,580 2,663,003 Average forward exchange rate (JPY/RMB) – 0.0483 0.0440 – 0.0478 0.0455 Notional amount (in RMB ’000) 830 – 1,257,940 – 610,917 350,540 2,220,227 Average forward exchange rate (EUR/RMB) 7.9410 – 7.8658 – 7.8524 8.2480 Notional amount (in RMB ’000) – – 1,028,704 – 800,772 960,661 2,790,137 Average forward exchange rate (AED/RMB) – – 1.9520 – 1.9208 1.9015
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Integrating global resources and promoting industry development 173INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 Maturity Less than 3 months 3 to 6 months 6 to 9 months 9 to 12 months 1 to 2 years 2 to 5 years Total Forward currency contracts Notional amount (in RMB ’000) 69,161 – – – – – 69,161 Average forward exchange rate (JPY/RMB) 0.0485 – – – – – Notional amount (in RMB ’000) 1,385,285 973,956 – – – 68,355 2,427,596 Average forward exchange rate (USD/RMB) 6.9201 6.8778 – – – 6.8185 Notional amount (in RMB ’000) 181,120 – – – – – 181,120 Average forward exchange rate (HKD/RMB) 0.9056 – – – – – Notional amount (in RMB ’000) 304,525 40,600 394 39,369 38,362 – 423,250 Average forward exchange rate (EUR/RMB) 8.3854 8.4195 8.4166 8.4145 8.4008 – Interest rate swaps Notional amount (in RMB ’000) 357,803 1,680,684 983,773 1,247,920 3,805,890 – 8,076,070 Average interest rate (%) 3.4795 3.4016 3.4122 3.3064 2.9671 – Hedge rate 1 1 1 1 1 – 11. DERIVATIVE FINANCIAL INSTRUMENTS /parenleft.capCONTINUED/parenright.cap Cash flow hedges under HKFRS 9 (continued) The Group holds the following cross-currency interest rate swap contracts, forward currency contracts and interest rate swaps: (continued)
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Far East Horizon Limited ·2026 Interim Report 174 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 11. DERIVATIVE FINANCIAL INSTRUMENTS /parenleft.capCONTINUED/parenright.cap Cash flow hedges under HKFRS 9 (continued) The Group holds the following cross-currency interest rate swaps, forward currency contracts and interest rate swaps: (continued) Maturity Less than 3 months 3 to 6 months 6 to 9 months 9 to 12 months 1 to 2 years 2 to 5 years Total As at 31 December 2025 Cross-currency interest rate swaps Notional amount (in RMB ’000) 1,091,377 – 718,306 1,904,800 6,862,631 12,157,294 22,734,408 Average forward exchange rate (USD/RMB) 7.2273 – 7.1605 6.5837 7.2299 7.1736 Notional amount (in RMB ’000) – 1,136,990 5,478,300 322,669 6,672,175 5,147,040 18,757,174 Average forward exchange rate (HKD/RMB) – 0.8969 0.9162 0.9167 0.9202 0.9098 Notional amount (in RMB ’000) – – – 280,170 215,253 1,737,580 2,233,003 Average forward exchange rate (JPY/RMB) – – – 0.0483 0.0478 0.0455 Notional amount (in RMB ’000) 1,136,450 – 10,830 – 1,868,857 350,540 3,366,677 Average forward exchange rate (EUR/RMB) 7.3344 – 7.9410 7.8625 7.8625 8.2480 Notional amount (in RMB ’000) – – – – 1,829,476 753,530 2,583,006 Average forward exchange rate (AED/RMB) – – – – 1.9333 1.9082
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Integrating global resources and promoting industry development 175INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 Maturity Less than 3 months 3 to 6 months 6 to 9 months 9 to 12 months 1 to 2 years 2 to 5 years Total Forward currency contracts Notional amount (in RMB ’000) 1,067,705 970,385 1,385,285 841,956 – – 4,265,331 Average forward exchange rate (USD/RMB) 7.1180 7.0000 6.9201 6.9060 – – Notional amount (in RMB ’000) 813 42,457 304,525 40,600 60,390 17,735 466,520 Average forward exchange rate (EUR/RMB) 8.4320 8.4258 8.3854 8.4195 8.4122 8.3954 Notional amount (in RMB ’000) 228,980 – 181,120 – – – 410,100 Average forward exchange rate (HKD/RMB) 0.9159 – 0.9056 – – – Notional amount (in RMB ’000) – 98,866 69,161 – – – 168,027 Average forward exchange rate (JPY/RMB) – 0.0495 0.0485 – – – Interest rate swaps Notional amount (in RMB ’000) 1,142,999 698,016 906,331 2,904,529 6,715,244 1,664,000 14,031,119 Average interest rate (%) 3.8212 3.3622 3.4906 3.4004 3.1552 2.9650 Hedge rate 1 1 1 1 1 1 11. DERIVATIVE FINANCIAL INSTRUMENTS /parenleft.capCONTINUED/parenright.cap Cash flow hedges under HKFRS 9 (continued) The Group holds the following cross-currency interest rate swap contracts, forward currency contracts and interest rate swaps: (continued)
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Far East Horizon Limited ·2026 Interim Report 176 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 11. DERIVATIVE FINANCIAL INSTRUMENTS /parenleft.capCONTINUED/parenright.cap Cash flow hedges under HKFRS 9 (continued) The impacts of the hedging instruments on the statement of financial position are as follows: Notional amount Carrying amount Line item in the statement of financial position Change in fair value used for measuring hedge ineffectiveness for the period RMB’000 RMB’000 RMB’000 As at 30 June 2026 Forward currency contracts 3,101,127 (106,308) Derivative financial instruments liabilities (88,454) Cross-currency interest rate swaps 1,804,800 81,439 Derivative financial instruments assets (149,445) Cross-currency interest rate swaps 48,859,708 (2,869,390) Derivative financial instruments liabilities (1,703,748) Interest rate swaps 2,414,000 661 Derivative financial instruments assets 472 Interest rate swaps 5,662,070 (9,602) Derivative financial Instruments liabilities 9,452
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Integrating global resources and promoting industry development 177INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 11. DERIVATIVE FINANCIAL INSTRUMENTS /parenleft.capCONTINUED/parenright.cap Cash flow hedges under HKFRS 9 (continued) The impacts of the hedging instruments on the statement of financial position are as follows: (continued) Notional amount Carrying amount Line item in the statement of financial position Change in fair value used for measuring hedge ineffectiveness for the year RMB’000 RMB’000 RMB’000 As at 31 December 2025 Forward currency contracts – – Derivative financial instruments assets (259,736) Forward currency contracts 5,309,978 (71,857) Derivative financial instruments liabilities (20,594) Cross-currency interest rate swaps 5,772,687 320,419 Derivative financial instruments assets (523,039) Cross-currency interest rate swaps 43,901,581 (1,215,243) Derivative financial instruments liabilities (1,838,192) Interest rate swaps 992,000 189 Derivative financial instruments assets (65,515) Interest rate swaps 13,039,119 (25,177) Derivative financial Instruments liabilities 63,682
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Far East Horizon Limited ·2026 Interim Report 178 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 11. DERIVATIVE FINANCIAL INSTRUMENTS /parenleft.capCONTINUED/parenright.cap Cash flow hedges under HKFRS 9 (continued) The impacts of the hedged items on the statement of financial position are as follows: Change in fair value used for measuring hedge ineffectiveness for the period Cash flow hedge reserve RMB’000 RMB’000 As at 30 June 2026 Foreign currency bank loans amounting to RMB equivalent 59,481,538,000 (1,931,723) (777,058) Change in fair value used for measuring hedge ineffectiveness for the year Cash flow hedge reserve RMB’000 RMB’000 As at 31 December 2025 Foreign currency bank loans amounting to RMB equivalent 54,636,092,000 (2,643,394) (726,698)
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Integrating global resources and promoting industry development 179INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 11. DERIVATIVE FINANCIAL INSTRUMENTS /parenleft.capCONTINUED/parenright.cap Cash flow hedges under HKFRS 9 (continued) The effects of the cash flow hedge on the statement of profit or loss and the statement of comprehensive income are as follows: Total hedging gain/(loss) recognised in other comprehensive income Hedge ineffectiveness recognised in profit or loss Line item in the statement of profit or loss Amount reclassified from other comprehensive income to profit or loss Line item (gross amount) in the statement of profit or loss For the six months ended 30 June 2026 Gross amount Tax effect Total Gross amount Tax effect Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Forward currency contracts (88,454) 1,519 (86,935) – N/A 99,504 (2,420) 97,084 Other expenses Cross-currency interest rate swaps (1,853,193) 13,995 (1,839,198) – N/A 1,777,121 (10,628) 1,766,493 Cost of sales/other expenses Interest rate swaps 9,924 (2,479) 7,445 – N/A 6,124 (1,373) 4,751 Cost of sales Total (1,931,723) 13,035 (1,918,688) – N/A 1,882,749 (14,421) 1,868,328 Total hedging gain/(loss) recognised in other comprehensive income Hedge ineffectiveness recognised in profit or loss Line item in the statement of profit or loss Amount reclassified from other comprehensive income to profit or loss Line item (gross amount) in the statement of profit or loss Year ended 31 December 2025 Gross amount Tax effect Total Gross amount Tax effect Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Forward currency contracts (280,330) 7,102 (273,228) – N/A 34,453 (1,357) 33,096 Other expenses Cross-currency interest rate swaps (2,361,231) (23,303) (2,384,534) – N/A 1,428,383 31,559 1,459,942 Cost of sales/other expenses Interest rate swaps (1,833) 485 (1,348) – N/A 65,341 (16,048) 49,293 Cost of sales Total (2,643,394) (15,716) (2,659,110) – N/A 1,528,177 14,154 1,542,331
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Far East Horizon Limited ·2026 Interim Report 180 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 11. DERIVATIVE FINANCIAL INSTRUMENTS /parenleft.capCONTINUED/parenright.cap Derivative financial instruments – transactions not qualifying as hedges: As at 30 June 2026 and 31 December 2025, all derivatives were designated for the cash flow hedge purposes. 12. INVESTMENTS IN JOINT VENTURES 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Share of net assets 5,995,247 6,482,722 Excess of consideration over share of net assets acquired 17,844 17,844 Provision for impairment (508,671) (440,274) Total 5,504,420 6,060,292 Particulars of the Group ’s joint ventures are as follows: Name Particulars of issued shares held Place of registration and business Percentage of Principal activities Ownership interest Profit sharing Guangzhou Kangda Industrial Technology Co., Ltd. ( “Kangda ”) (Ҧ ʮ̡ ) Registered capital of HKD570,000,000 PRC/ Chinese mainland 60* 60 Development and construction Grand Flight Holdings Co., Ltd. (ʮ̡ ) Authorised capital of USD50,000 British Virgin Islands 70* 70 Investment holding Grand Flight Hooyoung Investment Management Co., Ltd. (ʮ̡ ) Authorised capital of USD50,000 Cayman Islands 70* 70 Investment holding Grand Flight Hooyoung Investment L.P. (Υྫ ) Registered capital of USD100,500,001 Cayman Islands 54.73* 54.73 Investment holding
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Integrating global resources and promoting industry development 181INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 Name Particulars of issued shares held Place of registration and business Percentage of Principal activities Ownership interest Profit sharing Fengyang Qianmen Hospital Co., Ltd. (ʮ̡ ) Registered capital of RMB100,000,000 PRC/ Chinese mainland 35 35 Medical services Grand Flight Investment Management Co., Ltd. (ʮ̡ ) Registered capital of RMB50,000,000 PRC/ Chinese mainland 78* 90 Investment holding Tianjin Yuanyi Kaiyuan Asset Management Centre (Limited Partnership) (Ⴣᑈකʩ༟ପ ၍ଣʕː (Υྫ )) ( “Yuanyi Kaiyuan ”) Registered capital of RMB1,505,420,000 PRC/ Chinese mainland 39.856 39.856 Investment holding Guangzhou Yimei Tiancheng Decoration Engineering Co., Ltd. (ʮ̡ ) Registered capital of RMB5,000,000 PRC/ Chinese mainland 60* 60 Decoration engineering Wuhan Matang Hospital of Traditional Chinese Medicine Co., Ltd. (ʮ̡ ) Registered capital of RMB16,040,000 PRC/ Chinese mainland 24.99 24.99 Medical services Shanghai Xiangyun Enterprise Management Partnership (Limited Partnership) ( ɪऎᑳ⪯Άุ၍ଣΥྫΆุ (Υྫ )) Registered capital of RMB350,010,000 PRC/ Chinese mainland 51.9985* 51.9985 Management consulting 12. INVESTMENTS IN JOINT VENTURES /parenleft.capCONTINUED/parenright.cap Particulars of the Group ’s joint ventures are as follows: (continued)
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Far East Horizon Limited ·2026 Interim Report 182 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 Name Particulars of issued shares held Place of registration and business Percentage of Principal activities Ownership interest Profit sharing Wuhan Hongye Construction Development Co., Ltd. (ʮ̡ ) Registered capital of RMB328,000,000 PRC/ Chinese mainland 47 47 Drainage works Guixi Hongyu Infrastructure Investment Co., Ltd. (ʮ̡ ) Registered capital of RMB146,280,748 PRC/ Chinese mainland 85* 90 Infrastructure construction Guixi Hongye Infrastructure Investment Co., Ltd. (ҳ༟ ʮ̡ ) Registered capital of RMB151,294,129 PRC/ Chinese mainland 85* 90 Infrastructure construction Xi’an Chuxin Investment Construction Co., Ltd. (ʮ̡ ) Registered capital of RMB100,000,000 PRC/ Chinese mainland 46 46 Municipal engineering Sichuan Hongzhu City Construction Investment Co., Ltd. (̹ ʮ̡ ) Registered capital of RMB10,000,000 PRC/ Chinese mainland 60* 60 Construction investment Qingdao Co-e-Wins Venture Capital Limited Partnership (ΝዝԨᙊ ௴ุҳ༟ΥྫΆุ (Υྫ )) Registered capital of RMB66,000,000 PRC/ Chinese mainland 60.9756* 60.9756 Investment management Yantai Zhongda Xinhong Education Investment Co., Ltd. (҃ ʮ̡ ) Registered capital of RMB520,000,000 PRC/ Chinese mainland 47.5 47.5 Infrastructure construction 12. INVESTMENTS IN JOINT VENTURES /parenleft.capCONTINUED/parenright.cap Particulars of the Group ’s joint ventures are as follows: (continued)
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Integrating global resources and promoting industry development 183INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 Name Particulars of issued shares held Place of registration and business Percentage of Principal activities Ownership interest Profit sharing Yantai Yuanxin Zhongda Investment Co., Ltd. (ʮ̡ ) Registered capital of RMB260,000,000 PRC/ Chinese mainland 67* 67 Infrastructure construction Nanchang Xintie City Construction Investment Co., Ltd. (ʮ̡ ) Registered capital of RMB50,000,000 PRC/ Chinese mainland 45 45 Infrastructure construction Deyang Hongbo Construction Investment Co., Ltd. (ண ʮ̡ ) Registered capital of RMB371,825,488 PRC/ Chinese mainland 87* 87 Infrastructure construction Ziyang Yuyi Construction Investment Co., Ltd. (ணҳ༟ ʮ̡ ) Registered capital of RMB100,000,000 PRC/ Chinese mainland 98.15* 98.15 Infrastructure construction Qingdao Huizhu Zhouji Equity Investment Limited Partnership (ᛆҳ༟ΥྫΆุ (Υྫ )) Registered capital of RMB500,000,000 PRC/ Chinese mainland 50 50 Investment management Suzhou Hongcheng City Development Co., Ltd. (ʮ̡ ) Registered capital of RMB20,000,000 PRC/ Chinese mainland 50 50 Infrastructure construction Tianjin Hongcheng City Development Co., Ltd. (ʮ̡ ) Registered capital of RMB300,000,000 PRC/ Chinese mainland 99.63* 99.63 Infrastructure construction 12. INVESTMENTS IN JOINT VENTURES /parenleft.capCONTINUED/parenright.cap Particulars of the Group ’s joint ventures are as follows: (continued)
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Far East Horizon Limited ·2026 Interim Report 184 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 Name Particulars of issued shares held Place of registration and business Percentage of Principal activities Ownership interest Profit sharing Tianjin Hongpu Enterprise Management Co., Ltd. (ʮ̡ ) Registered capital of RMB127,500,000 PRC/ Chinese mainland 94.12* 94.12 Infrastructure construction Shanghai Jielang Enterprise Management Co., Ltd. (ʮ̡ ) Registered capital of RMB25,000,000 PRC/ Chinese mainland 70* 70 Investment management Chengdu Jinlanrui City Construction Development Co., Ltd. (̹ ʮ̡ ) Registered capital of RMB20,000,000 PRC/ Chinese mainland 65.44* 65.44 Infrastructure construction Hangzhou Hongkun City Development And Construction Co., Ltd. (۬ ʮ̡ ) Registered capital of RMB10,000,000 PRC/ Chinese mainland 70* 70 Infrastructure construction Tianjin Hongjia City Development Construction Co., Ltd. (̹ක ʮ̡ ) Registered capital of RMB50,000,000 PRC/ Chinese mainland 45.5 45.5 Infrastructure construction Chengdu Huachuang Yixingao Property Development Co., Ltd. ( ϓேശ௴ू பʮ̡ ) Registered capital of RMB100,000,000 PRC/ Chinese mainland 70* 70 Infrastructure construction Suzhou Hongxiang City Construction Development Co., Ltd. (ܔ பʮ̡ ) Registered capital of RMB100,000,000 PRC/ Chinese mainland 70* 70 Infrastructure construction 12. INVESTMENTS IN JOINT VENTURES /parenleft.capCONTINUED/parenright.cap Particulars of the Group ’s joint ventures are as follows: (continued)
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Integrating global resources and promoting industry development 185INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 Name Particulars of issued shares held Place of registration and business Percentage of Principal activities Ownership interest Profit sharing Hangzhou Hongqian City Development Construction Co., Ltd. (̹ ʮ̡ ) Registered capital of RMB230,000,000 PRC/ Chinese mainland 70* 70 Infrastructure construction Beijing Xingzhu Real Estate Development Co., Ltd. ( “Xingzhu ”) (ʮ̡ ) Registered capital of RMB470,000,000 PRC/ Chinese mainland 70* 70 Infrastructure construction Chengdu Hongmin City Construction Development Co., Ltd. (̹ ʮ̡ ) Registered capital of RMB213,350,000 PRC/ Chinese mainland 51* 51 Infrastructure construction Hangzhou Hongchen City Construction Development Co., Ltd. (ܔ ʮ̡ ) Registered capital of RMB180,000,000 PRC/ Chinese mainland 56.67* 56.67 Infrastructure construction Hangzhou Jiehan City Development and Construction Co., Ltd. (̹೯ ʮ̡ ) Registered capital of RMB200,000,000 PRC/ Chinese mainland 80* 80 Infrastructure construction Anhui Yuanyi Ruyi Venture Capital Fund (Limited Partnership) ( τᏏჃᑈνจ ΥྫΆุ (Υྫ )) Registered capital of RMB506,610,000 PRC/ Chinese mainland 59.2171* 59.2171 Investment holding * The decisions about the relevant activities that most significantly affect the returns of these investees would be subject to the consent of others (e.g. other shareholders or directors), and hence, the ownership interests and powers held by the Group in those investees do not currently grant the Group the unilateral ability to direct the relevant activities in these investees. The Group ’s loans and accounts receivables balances due from the joint ventures are disclosed in Note 10j to the interim condensed consolidated financial information. There was no recent history of default and past due amounts for loans to joint ventures. As at 30 June 2026 and 31 December 2025, the loss allowance was assessed to be minimal. Kangda, Xingzhu, and Yuanyi Kaiyuan, which are considered material joint ventures of the Group, are mainly engaged in development and construction, infrastructure construction, and investment holding in the Chinese mainland. The aforementioned companies are measured using the equity method. 12. INVESTMENTS IN JOINT VENTURES /parenleft.capCONTINUED/parenright.cap Particulars of the Group ’s joint ventures are as follows: (continued)
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Far East Horizon Limited ·2026 Interim Report 186 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 12. INVESTMENTS IN JOINT VENTURES /parenleft.capCONTINUED/parenright.cap The following table illustrates the summarised financial information in respect of Kangda adjusted for any differences in accounting policies and reconciled to the carrying amount of the net assets in the financial statements: 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Cash and cash equivalents 362,029 272,806 Other current assets 3,478,766 3,449,059 Current assets 3,840,795 3,721,865 Non-current assets 136,854 135,626 Other payables and accruals (696,153) (634,870) Current liabilities (696,153) (634,870) Non-current liabilities (965,315) (930,607) Net assets 2,316,181 2,292,014 Reconciliation to the Group ’s interest in the joint venture: Proportion of the Group ’s ownership 60% 60% The Group ’s share of net assets of the joint venture, excluding the excess of consideration over share of net assets acquired 1,389,709 1,375,208 Carrying amount of the investment 1,389,709 1,375,208 For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) RMB’000 RMB’000 Revenue 111,676 131,902 Cost of sales (52,216) (58,577) Administrative expenses (8,005) (6,576) Other expenses, net (26,577) (32,044) Profit and total comprehensive income for the period, net 24,878 34,705
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Integrating global resources and promoting industry development 187INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 12. INVESTMENTS IN JOINT VENTURES /parenleft.capCONTINUED/parenright.cap The following table illustrates the summarised financial information in respect of Xingzhu adjusted for any differences in accounting policies and reconciled to the carrying amount of the net assets in the financial statements: 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Cash and cash equivalents 566,468 187,421 Other current assets 1,643,819 1,429,551 Current assets 2,210,287 1,616,972 Non-current assets 8,097 – Other payables and accruals (1,793,207) (267,085) Current liabilities (1,793,207) (267,085) Non-current liabilities – (70,000) Net assets 425,177 1,279,887 Reconciliation to the Group ’s interest in the joint venture: Proportion of the Group ’s ownership 70% 70% The Group ’s share of net assets of the joint venture, excluding the excess of consideration over share of net assets acquired 297,624 895,921 Carrying amount of the investment 297,624 895,921 For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) RMB’000 RMB’000 Other expenses, net (20,864) (642) Loss and total comprehensive income for the period, net (20,864) (708)
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Far East Horizon Limited ·2026 Interim Report 188 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 12. INVESTMENTS IN JOINT VENTURES /parenleft.capCONTINUED/parenright.cap The following table illustrates the summarised financial information in respect of Yuanyi Kaiyuan adjusted for any differences in accounting policies and reconciled to the carrying amount of the net assets in the financial statements: 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Cash and cash equivalents 9,200 6,760 Other current assets 476,987 635,863 Current assets 486,187 642,623 Other payables and accruals (2,500) – Current liabilities (2,500) – Net assets 483,687 642,623 Reconciliation to the Group ’s interest in the joint venture: Proportion of the Group ’s ownership 39.856% 39.856% The Group ’s share of net assets of the joint venture, excluding the excess of consideration over share of net assets acquired 192,778 256,124 Carrying amount of the investment 192,778 256,124 For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) RMB’000 RMB’000 Other (expenses)/income, net (156,915) 46,947 (Loss)/Profit and total comprehensive income for the period, net (156,915) 46,947
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Integrating global resources and promoting industry development 189INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 12. INVESTMENTS IN JOINT VENTURES /parenleft.capCONTINUED/parenright.cap The following table illustrates the aggregate financial information of the Group ’s joint ventures that are not individually material: For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) RMB’000 RMB’000 Share of the joint ventures ’ (losses)/profits for the period (86,798) 61,352 Aggregate carrying amount of the Group ’s investments in the joint ventures 3,624,309 3,544,055 13. INVESTMENTS IN ASSOCIATES 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Share of net assets 3,780,479 3,844,496 Excess of consideration over share of net assets acquired 320,408 329,739 Provision for impairment (48,827) (55,763) Total 4,052,060 4,118,472 As at 30 June 2026, the Group invested in three companies (31 December 2025: three) which are mainly engaged in the investment holding business in the Chinese mainland, with the registered capital of RMB7,884,870,000, RMB8,590,320,000 and RMB3,000,000,000 (31 December 2025: RMB7,884,870,000, RMB8,590,320,000 and RMB3,000,000,000), respectively. The percentages of ownership interest and profit sharing of the Group in these companies are 7.6549%, 7.6342% and 17.0000% (31 December 2025: 7.6549%, 7.6342% and 17.0000%), respectively. The aforementioned companies are measured using the equity method.
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Far East Horizon Limited ·2026 Interim Report 190 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 13. INVESTMENTS IN ASSOCIATES /parenleft.capCONTINUED/parenright.cap The following table illustrates the aggregate financial information of the Group ’s associates that are not individually material: For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) RMB’000 RMB’000 Share of the associates ’ (loss)/profit for the period (12,261) 10,418 Aggregate carrying amount of the Group ’s investments in the associates 560,151 694,805 The Group ’s loans and accounts receivable balances due from the associates are disclosed in Note 10j to the interim condensed consolidated financial information.
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Integrating global resources and promoting industry development 191INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 14. CASH AND CASH EQUIVALENTS AND RESTRICTED DEPOSITS 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Cash and bank balances 17,310,844 22,619,137 Time deposits 9,409,854 9,195,415 Subtotal 26,720,698 31,814,552 Less: Pledged deposits 10,478,315 10,427,542 Restricted bank deposits related to asset securitisations 17,175 11,841 Cash and cash equivalents 16,225,208 21,375,169 At 30 June 2026, the cash and cash equivalents and restricted deposits of the Group denominated in RMB amounted to RMB24,465,005,000 (31 December 2025: RMB31,488,123,000). RMB is not freely convertible into other currencies, however, under the Chinese mainland ’s Foreign Exchange Control Regulations and Administration of Settlement, Sale and Payment of Foreign Exchange Regulations , the Group is permitted to exchange RMB for other currencies through banks authorised to conduct foreign exchange business. Cash at banks earns interest at either fixed or floating rates based on daily bank deposit rates. As at 30 June 2026, cash of RMB10,442,030,000 (31 December 2025: RMB10,177,069,000) was pledged for bank and other borrowings (see Note 18(c)). As at 30 June 2026, cash of RMB36,285,000 (31 December 2025: cash of RMB250,473,000) was pledged for bank acceptances, letters of credit and others.
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Far East Horizon Limited ·2026 Interim Report 192 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 15. ASSETS HELD FOR SALE 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Carrying amount of the assets classified as held for sale – 582,611 Assets: Investment in associates – 503,351 Investment in a subsidiary – 79,260 – 582,611 16. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Unlisted equity investments, at fair value 2,559,719 2,855,970 Listed equity investments, at fair value 1,300,986 1,155,003 Unlisted debt investments, at fair value 9,855,184 10,182,816 Total 13,715,889 14,193,789 Analysed into: Current portion 2,545,002 2,454,400 Non-current portion 11,170,887 11,739,389 The above equity investments were classified as financial assets at fair value through profit or loss as the Group has not elected to recognise the fair value gain or loss through other comprehensive income.
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Integrating global resources and promoting industry development 193INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 16. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS /parenleft.capCONTINUED/parenright.cap The above debt investments were mandatorily classified as financial assets at fair value through profit or loss as their contractual cash flows are not solely payments of principal and interest. As at 30 June 2026, the fair value of financial assets at fair value through profit or loss pledged or charged as collateral for the Group ’s borrowings amounted to RMB7,221,990,000 (31 December 2025: RMB7,110,644,000) (Note 18(b)). 17. TRADE AND BILLS PAYABLES 30 June 2026 31 December 2025 (Unaudited) (Audited) Note RMB’000 RMB’000 Current: Bills payable 913,286 1,006,058 Trade payables 7,323,167 6,758,246 Due to related parties 17a 6,807 7,116 Total 8,243,260 7,771,420 An ageing analysis of the trade and bills payables as at the end of the reporting period is as follows: 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Within 1 year 6,261,730 7,499,083 1 to 2 years 1,868,680 178,463 2 to 3 years 34,306 39,370 3 years and beyond 78,544 54,504 Total 8,243,260 7,771,420
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Far East Horizon Limited ·2026 Interim Report 194 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 17. TRADE AND BILLS PAYABLES /parenleft.capCONTINUED/parenright.cap 17a. Balances with Related Parties 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Due to related parties: Joint venture: Grand Flight Investment Management Co., Ltd. 6,667 6,667 Associate: Shanghai Yijia Construction Development Co., Ltd. 140 449 Total 6,807 7,116 The trade payables are non-interest-bearing and are repayable within the normal operating cycle or on demand.
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Integrating global resources and promoting industry development 195INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 18. INTEREST/hyphen.capBEARING BANK AND OTHER BORROWINGS 30 June 2026 (Unaudited) 31 December 2025 (Audited) Effective annual interest rate (%) Maturity RMB’000 Effective annual interest rate (%) Maturity RMB’000 Current Lease liabilities 3.00~3.65 2026~2027 342,179 3.45~3.65 2026 337,992 Bank loans – secured 1.40~3.00 2026~2027 373,364 1.40~3.50 2026 321,707 Current portion of long term bank loans – secured 1.90~3.80 2026~2027 15,258,253 1.90~4.00 2026 10,503,670 Bank loans – unsecured 1.14~4.93 2026~2027 14,439,003 1.08~4.93 2026 15,970,811 Current portion of long term bank loans – unsecured 1.90~7.12 2026~2027 47,310,138 2.05~7.12 2026 49,531,168 Other loans – secured 2.75~4.87 2026~2027 3,141,497 2.75~5.37 2026 4,510,448 Other loans – unsecured 2.42~6.00 2026~2027 100,296 2.42~6.00 2026 5,850,330 Bonds – secured 2.58~3.90 2026~2027 25,689,811 2.88~4.41 2026 20,014,616 Bonds – unsecured 1.45~6.63 2026~2027 26,325,870 1.50~5.50 2026 27,405,141 Subtotal – current 132,980,411 134,445,883 Convertible bonds – host debts – 3.21 2026 3,047 Total – current 132,980,411 134,448,930
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Far East Horizon Limited ·2026 Interim Report 196 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 30 June 2026 (Unaudited) 31 December 2025 (Audited) Effective annual interest rate (%) Maturity RMB’000 Effective annual interest rate (%) Maturity RMB’000 Non-current Lease liabilities 3.00~4.30 2027~2039 477,802 3.10~4.30 2027~2039 556,151 Bank loans – secured 2.21~3.80 2027~2042 12,171,654 1.90~4.50 2027~2042 17,141,062 Bank loans – unsecured 1.73~5.36 2027~2033 81,643,816 1.48~5.27 2027~2032 77,752,131 Other loans – secured 2.75~4.87 2027~2031 6,348,886 2.75~5.37 2027~2030 9,031,488 Other loans – unsecured 2.90~3.15 2027~2028 1,520,694 3.15 2027 817,406 Bonds – secured 2.58~3.41 2027~2028 5,802,041 2.88~3.82 2027 3,465,084 Bonds – unsecured 1.85~6.00 2027~2029 26,063,483 1.90~6.63 2027~2028 24,601,558 Total – non-current 134,028,376 133,364,880 Total 267,008,787 267,813,810 The carrying amounts of borrowings are denominated in the following currencies: 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 HKD 15,011,455 20,880,381 RMB 213,321,781 207,367,236 USD 30,815,155 30,358,750 EUR 2,583,177 4,060,124 Other 5,277,219 5,147,319 Total 267,008,787 267,813,810 18. INTEREST/hyphen.capBEARING BANK AND OTHER BORROWINGS /parenleft.capCONTINUED/parenright.cap
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Integrating global resources and promoting industry development 197INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 18. INTEREST/hyphen.capBEARING BANK AND OTHER BORROWINGS /parenleft.capCONTINUED/parenright.cap 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Fixed interest rate 118,683,272 124,246,651 Variable interest rate 148,325,515 143,567,159 Total 267,008,787 267,813,810 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Analysed into: Bank loans and overdrafts repayable: Within one year or on demand 77,380,758 76,320,501 In the second year 54,717,066 52,064,731 In the third to fifth years, inclusive 35,654,196 39,228,512 Beyond five years 3,444,208 3,599,951 Subtotal 171,196,228 171,213,695 Other borrowings repayable: Within one year or on demand 55,599,653 58,128,428 In the second year 28,171,747 22,482,169 In the third to fifth years, inclusive 12,014,391 15,956,419 Beyond five years 26,768 33,099 Subtotal 95,812,559 96,600,115 Total 267,008,787 267,813,810 (a) As at 30 June 2026, the Group ’s bank and other borrowings secured by the pledge of certain of the Group ’s lease receivables amounted to RMB50,852,092,000 (31 December 2025: RMB45,716,051,000). (b) As at 30 June 2026, the Group ’s bank and other borrowings secured by the pledge of the Group ’s long-term receivables and financial assets at fair value through profit or loss amounted to RMB4,838,653,000 (31 December 2025: RMB4,885,455,000). (c) As at 30 June 2026, the Group ’s bank borrowings amounting to RMB8,331,013,000 (31 December 2025: RMB8,361,199,000) were secured by the pledge of bank deposits. (d) As at 30 June 2026, the Group ’s bank and other borrowings, secured by the Group ’s leasehold land, and property, plant and equipment, amounted to RMB4,763,748,000 (31 December 2025: RMB6,025,370,000).
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Far East Horizon Limited ·2026 Interim Report 198 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 19. DEFERRED TAX The movements in deferred tax liabilities and assets during the period are as follows: Deferred tax assets Fee income received in advance Government special subsidy Share-based payments Allowances for impairment losses Salary and welfare payable Losses available for offsetting against future taxable profits Cash flow hedge Lease Others Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Gross deferred tax assets at 1 January 2026 142,840 1,095,755 78,935 3,312,610 1,224,484 458,465 15,354 79,489 377 6,408,309 (Charged)/credited to the statement of profit or loss during the period (33,012) (14,854) 33,877 258,255 137,671 (23,576) – (74,215) 2,237 286,383 Charged to reserve – – – – – – (1,386) – – (1,386) Exchange differences – – – (14) – (23) – – – (37) Gross deferred tax assets at 30 June 2026 (Unaudited) 109,828 1,080,901 112,812 3,570,851 1,362,155 434,866 13,968 5,274 2,614 6,693,269 Fee income received in advance Government special subsidy Share-based payments Allowances for impairment losses Salary and welfare payable Losses available for offsetting against future taxable profits Cash flow hedge Lease Others Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Gross deferred tax assets at 1 January 2025 222,010 1,021,195 89,152 3,042,627 1,331,750 366,799 16,916 106,588 2,690 6,199,727 (Charged)/credited to the statement of profit or loss during the year (79,170) 74,560 (10,217) 270,058 (107,266) 91,684 – (27,099) (2,313) 210,237 Charged to reserve – – – – – – (1,562) – – (1,562) Exchange differences – – – (75) – (18) – – – (93) Gross deferred tax assets at 31 December 2025 142,840 1,095,755 78,935 3,312,610 1,224,484 458,465 15,354 79,489 377 6,408,309
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Integrating global resources and promoting industry development 199INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 19. DEFERRED TAX /parenleft.capCONTINUED/parenright.cap The movements in deferred tax liabilities and assets during the period are as follows: (continued) Deferred tax liabilities Asset revaluation Fair value adjustments arising from financial assets at fair value through profit or loss Withholding income tax Lease Others Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Gross deferred tax liabilities at 1 January 2026 110,883 181,080 1,019,510 107,757 84,783 1,504,013 (Credited)/charged to the statement of profit or loss during the period (1,654) 34,838 131,294 (80,783) (3,991) 79,704 Payment of withholding tax – – (459,236) – – (459,236) Gross deferred tax liabilities at 30 June 2026 (Unaudited) 109,229 215,918 691,568 26,974 80,792 1,124,481 Asset revaluation Fair value adjustments arising from financial assets at fair value through profit or loss Withholding income tax Lease Others Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Gross deferred tax liabilities at 1 January 2025 120,505 121,084 563,151 136,365 33,891 974,996 (Credited)/charged to the statement of profit or loss during the year (9,622) 59,996 783,117 (28,608) 23,586 828,469 Payment of withholding tax – – (326,758) – – (326,758) Acquisition of subsidiaries during the year – – – – 27,306 27,306 Gross deferred tax liabilities at 31 December 2025 110,883 181,080 1,019,510 107,757 84,783 1,504,013
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Far East Horizon Limited ·2026 Interim Report 200 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 19. DEFERRED TAX /parenleft.capCONTINUED/parenright.cap For the purpose of the presentation of the consolidated statement of financial position, certain deferred tax assets and liabilities have been offset. The following is an analysis of the deferred tax balances of the Group for financial reporting purposes: 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Net deferred tax assets recognised in the consolidated statement of financial position 6,664,112 6,232,591 Net deferred tax liabilities recognised in the consolidated statement of financial position 1,095,324 1,328,295 As at 30 June 2026, the Group had tax losses arising in Hong Kong of RMB83,968,000 (31 December 2025: RMB84,105,000) that are available indefinitely for offsetting against future taxable profits of the companies in which the losses arose, and tax losses arising in the Chinese mainland of RMB1,649,812,000 (31 December 2025: RMB1,744,116,000) that will expire in one to five years for offsetting against future taxable profits. The Group has recognised deferred tax assets in respect of the tax losses mentioned above. Aside from this, as at 30 June 2026, the Group did not recognise deferred tax assets arising in the Chinese mainland and Hong Kong in respect of unutilised tax losses of RMB5,352,246,000 (31 December 2025: RMB5,015,419,000) and RMB2,562,761,000 (31 December 2025: RMB2,441,835,000), respectively, due to uncertainty in their recoverability. Pursuant to the previous resolutions of the Company, part of the Chinese mainland subsidiaries ’ profits of prior years will be retained by the Chinese mainland subsidiaries for the use in future operations or investments. In the opinion of the directors, it is probable that the temporary differences relating to the profits that are not expected to be distributed will not reverse in the foreseeable future. During the six months ended 30 June 2026, the Group charged withholding taxes of RMB131,294,000 (During the year ended 31 December 2025, the Group charged withholding taxes of RMB783,117,000). As at 30 June 2026, the aggregate amount of unrecognised deferred tax liabilities (i.e., withholding taxes relating to such temporary differences) was approximately RMB1,325,646,000 (31 December 2025: RMB1,325,646,000).
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Integrating global resources and promoting industry development 201INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 20. SHARE CAPITAL Number of shares Amounts HKD Issued and fully paid ordinary shares: At 31 December 2025 (Audited) (Note (i)) 4,799,473,830 19,267,004,000 At 30 June 2026 (Unaudited) (Note (i)) 4,818,107,647 19,405,550,000 Note: (i) The Company purchased its own shares through a trust under a share award scheme, which were presented as shares held for the share award scheme. A summary of movements in the Company ’s share capital is as follows: Number of shares in issue Share capital Equivalent share capital HKD’000 RMB’000 At 1 January 2026 and 31 December 2025 4,799,473,830 19,267,004 15,639,775 Share options exercised (Note (ii)) 18,154,719 135,441 118,791 Conversion shares issued (Note (iii)) 479,098 3,105 3,109 As at 30 June 2026 (Unaudited) 4,818,107,647 19,405,550 15,761,675 Notes: (ii) The subscription rights attaching to 5,153,882, 688,112, 1,005,817, 854,442, 1,821,801, 4,676,977, 2,613,665 and 1,340,023 share options were exercised at the subscription prices of HKD5.714, HKD6.820, HKD7.360, HKD7.618, HKD6.700, HKD6.378, HKD5.580 and HKD5.390 per share, respectively, resulting in the issue of 18,154,719 shares for a total cash consideration, after expenses, of HKD111,897,000. An amount of HKD23,544,000 was transferred from the share option reserve to share capital upon the exercise of the share options. (iii) During the period, there were conversions of the convertible bonds in the principal amount of USD400,000 with the corresponding equity component of USD19,000 and liability component of USD443,000. The Company has issued a total of 479,098 conversion shares to bondholders at the conversion price of HKD6.48 per conversion share.
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Far East Horizon Limited ·2026 Interim Report 202 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 21. RESERVES The amounts of the Group ’s reserves and the movements therein for the current and prior periods are presented in the consolidated statement of changes in equity of the financial statements. The Group ’s capital reserve represents the excess of the carrying amounts of capital and capital reserve of the subsidiaries acquired pursuant to the reorganisation as defined in the Prospectus, over the nominal value of the Company ’s shares issued as consideration plus the amount of borrowings capitalised in excess of the nominal value of shares issued. Pursuant to the relevant PRC rules and regulations, those PRC subsidiaries which are domestic enterprises in the PRC are required to transfer no less than 10% of their profits after taxation, as determined under the PRC Company Law, to the statutory reserve fund until the balance reaches 50% of the registered capital. The transfer to this statutory reserve fund must be made before the distribution of dividends to shareholders. Special reserve mainly represents funds set aside for the purpose of certain safety production activities. Pursuant to certain regulations issued by the State Administration of Work Safety of the PRC and other relevant regulatory bodies, the subsidiaries, Shanghai Horizon Equipment & Engineering Co., Ltd., Shanghai Hongjin Equipment & Engineering Co., Ltd., and Tianjin Horizon Construction Development Engineering Technology Co., Ltd. set aside funds mainly for construction service activities at prescribed rates. These funds can be used for maintenance and/or improvements of safety of these activities, and are not available for distribution to shareholders. The share-based compensation reserve of the Group comprises the recognition of the equity-settled share-based payments under share option schemes and share award schemes which are yet to be exercised. The amount will be transferred to share capital or shares held for the share award scheme when the related share options are exercised or when the restricted shares are vested. 22. CONTINGENT LIABILITIES At 30 June 2026 and 31 December 2025, there were no contingent liabilities not provided for in the financial statements.
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Integrating global resources and promoting industry development 203INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 23. PLEDGE OF ASSETS Details of the Group ’s assets pledged for the Group ’s bank loans and other borrowings are included in Notes 9, 10, 14, 16 and 18 to the interim condensed consolidated financial information. 24. COMMITMENTS (a) Capital commitments The Group had the following capital commitments at the end of the reporting period: 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Contracted, but not provided for: Capital expenditure for acquisition of property, plant and machinery 158,150 48,162 (b) Credit commitments The Group ’s irrevocable credit commitments at the end of the reporting period were as follows: 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Irrevocable credit commitments 3,655,654 7,147,750 At any given time, the Group also has outstanding commitments to extend credit, which are included in irrevocable credit commitments. These commitments are in the form of approved lease contracts, which have yet to be provided at the end of each reporting period.
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Far East Horizon Limited ·2026 Interim Report 204 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 25. RELATED PARTY TRANSACTIONS Relationship between the Group and its related parties: Joint ventures Guangzhou Kangda Industrial Technology Co., Ltd. Fengyang Qianmen Hospital Co., Ltd. Tian Jin Grand Flight Hooyoung Asset Management Co., Ltd. * Grand Flight Investment Management Co., Ltd. Guangzhou Yimei Tiancheng Decoration Engineering Co., Ltd. Ziyang Yuyi Construction Investment Co., Ltd. Tianjin Shuishi Enterprise Management Co., Ltd.* Guixi Hongye Infrastructure Investment Co., Ltd. Guixi Hongyu Infrastructure Investment Co., Ltd. Deyang Hongbo Construction Investment Co., Ltd. Chengdu Jinlanrui City Construction and Development Co., Ltd. Wuhan Hongye Construction and Development Co., Ltd. Hangzhou Hongkun City Development And Construction Co., Ltd. Chengdu Hongmin Urban Construction and Development Co., Ltd. Suzhou Hongxiang City Construction Development Co., Ltd. Hangzhou Jiehan City Development and Construction Co., Ltd. Suzhou Hongcheng City Development Co., Ltd. Sichuan Hongzhu City Construction Investment Co., Ltd. Hangzhou Hongqian City Development Construction Co., Ltd. Hangzhou Hongchen City Construction Development Co., Ltd. Hangzhou Hongyue City Development Construction Co., Ltd. ** Beijing Xingzhu Real Estate Development Co., Ltd. Yantai Yuanxin Zhongda Investment Co., Ltd. Chengdu Huachuang Yixingao Property Development Co., Ltd. Shanghai Jielang Enterprise Management Co., Ltd. Associates Shanghai Yijia Construction Development Co., Ltd. Hangzhou Guoya Stomatological Hospital Co., Ltd. Shanghai Hongzuo New Energy Technology Co., Ltd. Liuzhou CSCEC Science and Industry Cultural Tourism Development Co., Ltd. * Tian Jin Grand Flight Hooyoung Asset Management Co., Ltd. and Tianjin Shuishi Enterprise Management Co., Ltd. are subsidiaries of Grand Flight Investment Management Co., Ltd. ** Hangzhou Hongyue City Development Construction Co., Ltd. is a subsidiary of Hangzhou Hongchen City Construction Development Co., Ltd.
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Integrating global resources and promoting industry development 205INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 25. RELATED PARTY TRANSACTIONS /parenleft.capCONTINUED/parenright.cap a. In addition to the balances in Notes 10 and 17 to the interim condensed consolidated financial information, at the end of the reporting period, the Group had the following balances with its related parties: (i) Prepayments, other receivables and other assets 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Due from related parties Wuhan Hongye Construction and Development Co., Ltd. 46,050 44,050 Deyang Hongbo Construction Investment Co., Ltd. 14,321 14,321 Guangzhou Kangda Industrial Technology Co., Ltd. 12,000 12,000 Shanghai Yijia Construction Development Co., Ltd. 699 2,834 Fengyang Qianmen Hospital Co., Ltd. 565 565 Liuzhou CSCEC Science and Industry Cultural Tourism Development Co., Ltd. 384 – Chengdu Hongmin Urban Construction and Development Co., Ltd. 299 9,257 Yantai Yuanxin Zhongda Investment Co., Ltd. – 2,156 Hangzhou Hongkun City Development And Construction Co., Ltd. – 1,184 Total 74,318 86,367 Amounts due from related parties of the Group are unsecured and non-interest-bearing.
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Far East Horizon Limited ·2026 Interim Report 206 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 25. RELATED PARTY TRANSACTIONS /parenleft.capCONTINUED/parenright.cap a. In addition to the balances in Notes 10 and 17 to the interim condensed consolidated financial information, at the end of the reporting period, the Group had the following balances with its related parties: (continued) (ii) Other payables and accruals 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Due to related parties Chengdu Jinlanrui City Construction and Development Co., Ltd. 150,597 55,330 Grand Flight Investment Management Co., Ltd. 24,661 71,701 Ziyang Yuyi Construction Investment Co., Ltd. 16,803 17,000 Tianjin Shuishi Enterprise Management Co., Ltd. 4,967 4,937 Deyang Hongbo Construction Investment Co., Ltd. 3,701 – Tian Jin Grand Flight Hooyoung Asset Management Co., Ltd. 2,683 2,663 Chengdu Hongmin Urban Construction and Development Co., Ltd. 1,249 – Fengyang Qianmen Hospital Co., Ltd. 268 268 Chengdu Huachuang Yixingao Property Development Co., Ltd. – 34,747 Total 204,929 186,646 Except for the amounts due to Grand Flight Investment Management Co., Ltd., Ziyang Yuyi Construction Investment Co., Ltd., Tianjin Shuishi Enterprise Management Co., Ltd., Deyang Hongbo Construction Investment Co., Ltd., Tian Jin Grand Flight Hooyoung Asset Management Co., Ltd. and Fengyang Qianmen Hospital Co., Ltd., which bear interest at an interest rate of 1.485% per annum, amounts due to other related parties are unsecured and non-interest-bearing.
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Integrating global resources and promoting industry development 207INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 25. RELATED PARTY TRANSACTIONS /parenleft.capCONTINUED/parenright.cap a. In addition to the balances in Notes 10 and 17 to the interim condensed consolidated financial information, at the end of the reporting period, the Group had the following balances with its related parties: (continued) (iii) Interest-bearing bank and other borrowings 30 June 2026 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Due to related parties Chengdu Hongmin Urban Construction and Development Co., Ltd. 194,147 – Chengdu Huachuang Yixingao Property Development Co., Ltd. 208,000 – Total 402,147 – The borrowing from Chengdu Hongmin Urban Construction and Development Co., Ltd. bears interest at an interest rate of 3.1% per annum. b. The Group had the following material transactions with related parties during the period: (i) Interest expenses For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) RMB’000 RMB’000 Chengdu Hongmin Urban Construction and Development Co., Ltd. 1,249 – Grand Flight Investment Management Co., Ltd. 412 344 Ziyang Yuyi Construction Investment Co., Ltd. 42 – Tianjin Shuishi Enterprise Management Co., Ltd. 35 34 Deyang Hongbo Construction Investment Co., Ltd. 27 – Tian Jin Grand Flight Hooyoung Asset Management Co., Ltd. 19 19 Total 1,784 397
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Far East Horizon Limited ·2026 Interim Report 208 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 25. RELATED PARTY TRANSACTIONS /parenleft.capCONTINUED/parenright.cap b. The Group had the following material transactions with related parties during the period: (continued) (ii) Interest income from loans and accounts receivables For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) RMB’000 RMB’000 Chengdu Jinlanrui City Construction and Development Co., Ltd. 7,921 3,860 Guangzhou Kangda Industrial Technology Co., Ltd. 5,597 4,269 Hangzhou Hongqian City Development Construction Co., Ltd. 3,792 – Ziyang Yuyi Construction Investment Co., Ltd. 2,379 2,279 Hangzhou Jiehan City Development and Construction Co., Ltd. 2,298 – Hangzhou Hongchen City Construction Development Co., Ltd. 1,929 – Guixi Hongye Infrastructure Investment Co., Ltd. 926 928 Deyang Hongbo Construction Investment Co., Ltd. 861 150 Suzhou Hongxiang City Construction Development Co., Ltd. 692 – Beijing Xingzhu Real Estate Development Co., Ltd. 520 – Guixi Hongyu Infrastructure Investment Co., Ltd. 221 359 Suzhou Hongcheng City Development Co., Ltd. 135 – Hangzhou Guoya Stomatological Hospital Co., Ltd. – 4 Hangzhou Hongkun City Development And Construction Co., Ltd. – 1,544 Chengdu Hongmin Urban Construction and Development Co., Ltd. – 16 Wuhan Hongye Construction and Development Co., Ltd. – 492 Shanghai Hongzuo New Energy Technology Co., Ltd. – 1,727 Total 27,271 15,628
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Integrating global resources and promoting industry development 209INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 25. RELATED PARTY TRANSACTIONS /parenleft.capCONTINUED/parenright.cap b. The Group had the following material transactions with related parties during the period: (continued) (iii) Administrative fee For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) RMB’000 RMB’000 Shanghai Yijia Construction Development Co., Ltd. – 452 (iv) Service fee income For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) RMB’000 RMB’000 Sichuan Hongzhu City Construction Investment Co., Ltd. 679 –
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Far East Horizon Limited ·2026 Interim Report 210 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 25. RELATED PARTY TRANSACTIONS /parenleft.capCONTINUED/parenright.cap b. The Group had the following material transactions with related parties during the period: (continued) (v) Construction contract revenue For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) RMB’000 RMB’000 Hangzhou Hongyue City Development Construction Co., Ltd. 15,564 – Hangzhou Hongqian City Development Construction Co., Ltd. 3,441 – Beijing Xingzhu Real Estate Development Co., Ltd. 1,843 – Total 20,848 – c. Compensation of key management personnel of the Group For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) RMB’000 RMB’000 Employee benefits 60,774 56,610 The above employee benefits have not taken into consideration the employees ’ potential entitlement under the collective economic-gain bonus schemes (Note 5) during the six months ended 30 June 2026 and 2025.
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Integrating global resources and promoting industry development 211INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 26. FINANCIAL INSTRUMENTS BY CATEGORY As of 30 June 2026 As of 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Financial assets as per the statement of financial position Financial assets at amortised cost: Loans and accounts receivables 283,846,142 273,519,543 Financial assets included in prepayments, other receivables and other assets 505,270 1,361,249 Restricted deposits 10,495,490 10,439,383 Cash and cash equivalents 16,225,208 21,375,169 Financial assets at fair value through profit or loss: Financial assets at fair value through profit or loss 13,715,889 14,193,789 Financial assets at fair value through other comprehensive income: Debt investments at fair value through other comprehensive income 370,534 260,855 Hedging instruments designated in cash flow hedges: Derivative financial instruments designated as hedging instruments in cash flow hedges 82,100 320,608 Total 325,240,633 321,470,596
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Far East Horizon Limited ·2026 Interim Report 212 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 26. FINANCIAL INSTRUMENTS BY CATEGORY /parenleft.capCONTINUED/parenright.cap As of 30 June 2026 As of 31 December 2025 (Unaudited) (Audited) RMB’000 RMB’000 Financial liabilities as per the statement of financial position Financial liabilities at amortised cost: Trade and bills payables 8,243,260 7,771,420 Financial liabilities included in other payables and accruals 25,161,729 22,965,297 Interest-bearing bank and other borrowings 266,188,806 266,916,620 Convertible bonds – host debts – 3,047 Lease liabilities 819,981 894,143 Financial liabilities at fair value through profit or loss: Other non-current liabilities 2,071,083 2,140,222 Hedging instruments designated in cash flow hedges: Derivative financial instruments designated as hedging instruments in cash flow hedges 2,985,300 1,312,277 Total 305,470,159 302,003,026
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Integrating global resources and promoting industry development 213INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 27. FAIR VALUE HIERARCHY Financial instruments not measured at fair value Financial assets and liabilities not presented at their fair value in the statement of financial position mainly represent cash and cash equivalents, restricted deposits, loans and accounts receivables, financial assets included in prepayments, other receivables and other assets, trade and bills payables, financial liabilities included in other payables and accruals, and interest-bearing bank and borrowings. Fair value estimates are made at a specific point in time based on relevant market information and information about various financial instruments. The following methods and assumptions have been used to estimate the fair value of each class of financial instrument as far as practicable: Cash and cash balances, the current portion of financial assets included in prepayments and other receivables, trade and bills payables, short-term borrowings and the current portion of financial liabilities included in other payables and accruals Substantially all of the financial assets and liabilities mature within one year from the end of each reporting period and their carrying values approximate to their fair values. Loans and accounts receivables, restricted deposits, interest-bearing bank and other borrowings except for bonds issued and short-term borrowings Substantially all of the restricted deposits and interest-bearing bank and other borrowings, except for bonds issued and short-term borrowings, are on floating rate terms and bear interest at prevailing market interest rates and their carrying values approximate to their fair values. For loans and accounts receivables with long-term remaining maturities, the applied interest rates approximate to prevailing market interest rates and their carrying values approximate to their fair value.
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Far East Horizon Limited ·2026 Interim Report 214 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 27. FAIR VALUE HIERARCHY /parenleft.capCONTINUED/parenright.cap Financial instruments not measured at fair value (continued) Bonds issued and convertible bonds – host debts The fair values of the bonds and host debts convertible bonds issued are calculated based on a discounted cash flow model that is used based on a current yield curve appropriate for the remaining term to maturity. The carrying amounts and fair values of the Group ’s financial instruments, other than those with carrying amounts that reasonably approximate to fair values, are as follows: Carrying amounts Fair values 30 June 2026 31 December 2025 30 June 2026 31 December 2025 (Unaudited) (Audited) (Unaudited) (Audited) RMB’000 RMB’000 RMB’000 RMB’000 Financial liabilities Bonds issued 83,881,205 75,486,399 84,533,736 76,623,193 Convertible bonds – host debts – 3,047 – 2,812 Non-current portion of financial assets included in prepayments, deposits and other receivables and the non-current portion of financial liabilities included in other payables and accruals The fair values of the non-current portion of financial assets included in prepayment, deposits and other receivables and the non-current portion of financial liabilities included in other payables and accruals have been calculated by discounting the expected future cash flows using rates currently available for instruments with similar terms, credit risk and remaining maturities. The difference between the carrying amounts and the fair values of those financial assets and liabilities is not significant.
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Integrating global resources and promoting industry development 215INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 27. FAIR VALUE HIERARCHY /parenleft.capCONTINUED/parenright.cap Financial instruments measured at fair value Cross-currency interest rate swaps and interest rate swaps Cross-currency interest rate swaps and interest rate swaps are measured using valuation techniques similar to the present value calculations of the forward pricing and swap models, which incorporate various market observable inputs including the credit quality of counterparties, foreign exchange spot and forward rates and interest rate curves. Financial assets at fair value through profit or loss The valuations of the financial assets at fair value through profit or loss were based on information known to the Group and market conditions existing at the end of the reporting period. The fair values were determined by using appropriate valuation techniques. Valuation techniques include using recent arm ’s length market transactions, referring to the current market value of another instrument that is substantially the same and making as much use of available and supportable market data as possible. Set out below is a summary of significant unobservable inputs to the valuation of financial instruments together with a quantitative sensitivity analysis as at 30 June 2026 and 31 December 2025: Description Fair value at 30 June 2026 Valuation technique Unobservable input Relationship of unobservable inputs to fair value RMB’000 Financial assets at fair value through profit or loss 11,294,394 Market comparable model/Adjusted recent transaction price Discount for lack of marketability (“DLOM”)/Volatility The higher the DLOM, the lower the fair value/The higher the volatility, the higher the fair value Other non-current liabilities (2,071,083) Market comparable model/Adjusted recent transaction price DLOM/Volatility The higher the DLOM, the higher the fair value/The higher the volatility, the lower the fair value
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Far East Horizon Limited ·2026 Interim Report 216 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 27. FAIR VALUE HIERARCHY /parenleft.capCONTINUED/parenright.cap Financial instruments measured at fair value (continued) Financial assets at fair value through profit or loss (continued) Description Fair value at 31 December 2025 Valuation technique Unobservable input Relationship of unobservable inputs to fair value RMB’000 Financial assets at fair value through profit or loss 11,955,259 Market comparable model/Adjusted recent transaction price DLOM/Volatility The higher the DLOM, the lower the fair value/The higher the volatility, the higher the fair value Other non-current liabilities (2,140,222) Market comparable model/Adjusted recent transaction price DLOM/Volatility The higher the DLOM, the higher the fair value/The higher the volatility, the lower the fair value Fair value hierarchy The Group uses the following hierarchy for determining and disclosing the fair values of financial instruments: Level 1: fair values measured based on quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: fair values measured based on valuation techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly; Level 3: fair values measured based on valuation techniques for which any inputs which have a significant effect on the recorded fair value are not based on observable market data (unobservable inputs).
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Integrating global resources and promoting industry development 217INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 27. FAIR VALUE HIERARCHY /parenleft.capCONTINUED/parenright.cap Assets and liabilities measured at fair value As at 30 June 2026 Level 1 Quoted prices in active markets Level 2 Significant Observable inputs Level 3 Significant unobservable inputs Total (Unaudited) (Unaudited) (Unaudited) (Unaudited) RMB’000 RMB’000 RMB’000 RMB’000 Cross-currency interest rate swaps – assets – 81,439 – 81,439 Interest rate swaps – assets – 661 – 661 Cross-currency interest rate swaps – liabilities – (2,869,390) – (2,869,390) Forward currency contracts – liabilities – (106,308) – (106,308) Interest rate swaps – liabilities – (9,602) – (9,602) Financial assets at fair value through profit or loss 1,300,986 1,120,509 11,294,394 13,715,889 Debt investments at fair value through other comprehensive income – 370,534 – 370,534 Other non-current liabilities – – (2,071,083) (2,071,083)
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Far East Horizon Limited ·2026 Interim Report 218 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 27. FAIR VALUE HIERARCHY /parenleft.capCONTINUED/parenright.cap Assets and liabilities measured at fair value (continued) As at 31 December 2025 Level 1 Quoted prices in active markets Level 2 Significant Observable inputs Level 3 Significant unobservable inputs Total (Audited) (Audited) (Audited) (Audited) RMB’000 RMB’000 RMB’000 RMB’000 Cross-currency interest rate swaps – assets – 320,419 – 320,419 Interest rate swaps – assets – 189 – 189 Cross-currency interest rate swaps – liabilities – (1,215,243) – (1,215,243) Forward currency contracts – liabilities – (71,857) – (71,857) Interest rate swaps – liabilities – (25,177) – (25,177) Financial assets at fair value through profit or loss 1,155,003 1,083,527 11,955,259 14,193,789 Debt investments at fair value through other comprehensive income – 260,855 – 260,855 Other non-current liabilities – – (2,140,222) (2,140,222)
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Integrating global resources and promoting industry development 219INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 27. FAIR VALUE HIERARCHY /parenleft.capCONTINUED/parenright.cap Assets and liabilities measured at fair value (continued) The movements in fair value measurements within Level 3 during the period are as follows: For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) RMB’000 RMB’000 Financial assets at fair value through profit or loss Carrying amount at the beginning of the period 11,955,259 13,991,560 Changes in fair value recognised in profit or loss 790,274 557,931 Additions 1,902,856 1,789,752 Disposals (2,464,232) (2,775,172) Transfers to Level 1* (889,763) (443,795) Carrying amount at the end of the period 11,294,394 13,120,276 * The Group transferred certain financial instruments from Level 3 to Level 1 of the fair value hierarchy due to the fact that fair value determination had changed from fair value measurement using significant unobservable inputs to quoted prices in active markets. During the six months ended 30 June 2026, there were no transfers of fair value measurements between Level 1 and Level 2 for both financial assets and financial liabilities (six months ended 30 June 2025: Nil). Liabilities for which fair values are disclosed As at 30 June 2026 Level 1 Quoted prices in active markets Level 2 Significant Observable inputs Level 3 Significant unobservable inputs Total (Unaudited) (Unaudited) (Unaudited) (Unaudited) RMB’000 RMB’000 RMB’000 RMB’000 Bonds issued – 84,533,736 – 84,533,736
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Far East Horizon Limited ·2026 Interim Report 220 INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 27. FAIR VALUE HIERARCHY /parenleft.capCONTINUED/parenright.cap Liabilities for which fair values are disclosed (continued) As at 31 December 2025 Level 1 Quoted prices in active markets Level 2 Significant Observable inputs Level 3 Significant unobservable inputs Total (Audited) (Audited) (Audited) (Audited) RMB’000 RMB’000 RMB’000 RMB’000 Bonds issued – 76,623,193 – 76,623,193 Convertible bonds – host debts – 2,812 – 2,812 28. EVENTS AFTER THE REPORTING PERIOD On 5 August 2026, the board of directors (the “Board”) approved the payment of an interim dividend of HKD0.25 per share in respect of the six months ended 30 June 2026 to shareholders whose names appear on the register of members of the Company on 18 September 2026. The interim dividend will be paid on 29 September 2026. 29. APPROVAL OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION The interim condensed consolidated financial information was approved and authorised for issue by the Board on 5 August 2026.