Earnings release
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1 Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. CALB Group Co., Ltd. ʮ̡ (A joint stock limited company incorporated in the People ’s Republic of China with limited liability) (Stock Code: 3931) ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2026 The board (the “Board”) of directors (the “Directors ”) of CALB Group Co., Ltd. (the “Company ”) is pleased to announce the unaudited condensed consolidated interim results of the Company and its subsidiaries (collectively, the “Group”, “CALB”, “we” or “us”) for the six months ended 30 June 2026 (the “Reporting Period ”), together with the comparative figures for the six months ended 30 June 2025, as follows: FINANCIAL SUMMARY The revenue of the Group increased by 65.0% from RMB16,418.88 million for the six months ended 30 June 2025 to RMB27,084.37 million for the six months ended 30 June 2026. The profit for the period of the Group increased by 102.2% from RMB752.99 million for the six months ended 30 June 2025 to RMB1,522.77 million for the six months ended 30 June 2026. The basic earnings per share of the Group increased by 100.7% from RMB0.2629 for the six months ended 30 June 2025 to RMB0.5276 for the six months ended 30 June 2026.
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2 INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE SIX MONTHS ENDED 30 JUNE 2026 Unaudited Six months ended 30 June Notes 2026 2025 RMB’000 RMB’000 Revenue 4 27,084,367 16,418,878 Cost of sales (22,557,359) (13,539,998) Gross profit 4,527,008 2,878,880 Investment and other income 5 131,850 160,942 Other losses, net 6 (378,295) (121,384) Selling expenses (466,483) (368,568) Administrative expenses (599,503) (500,062) Research and development expenses (1,112,656) (859,670) Reversal of impairment losses/(impairment losses) on trade and bills receivables, net 1,291 (19,017) Impairment losses on prepayments, deposits and other receivables, net (6,356) (4,523) Profit from operations 2,096,856 1,166,598 Finance costs (512,151) (383,121) Share of profit of associates 4,618 515 Profit before tax 1,589,323 783,992 Income tax expense 7 (66,550) (31,005) Profit for the period 8 1,522,773 752,987 Attributable to: Owners of the Company 935,106 465,957 Non-controlling interests 587,667 287,030 1,522,773 752,987 Earnings per share (expressed in RMB per share) 10 Basic 0.5276 0.2629 Diluted 0.5276 0.2629
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3 INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 30 JUNE 2026 Unaudited Six months ended 30 June 2026 2025 RMB’000 RMB’000 Profit for the period 1,522,773 752,987 Other comprehensive (expense)/income: Item that will not be reclassified to profit or loss: Fair value changes of equity instruments at fair value through other comprehensive income ( “FVTOCI ”) (52,899) 7,147 Item that may be reclassified to profit or loss: Exchange differences on translating foreign operations (37,412) (2,849) Other comprehensive (expense)/income for the period, net of tax (90,311) 4,298 Total comprehensive income for the period 1,432,462 757,285 Attributable to: Owners of the Company 844,795 470,255 Non-controlling interests 587,667 287,030 1,432,462 757,285
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4 INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 30 JUNE 2026 Unaudited Audited Notes 30 June 2026 31 December 2025 RMB’000 RMB’000 Non-current assets Property, plant and equipment 103,382,896 91,803,586 Right-of-use assets 2,738,609 2,469,276 Goodwill 137,956 137,956 Intangible assets 2,095,016 2,118,814 Investments in associates 356,472 359,959 Other financial assets 2,579,467 2,241,924 Deposits paid for acquisition of property, plant and equipment 1,911,569 1,142,603 Deferred tax assets 873,885 763,521 114,075,870 101,037,639 Current assets Inventories 12,832,209 7,163,551 Trade and bills receivables 11 15,724,839 14,964,655 Prepayments, deposits and other receivables 11,070,892 8,175,971 Amounts due from related parties 24,165 – Other financial assets 2,149,462 5,019,239 Current tax assets 5,183 3,186 Pledged bank deposits 2,815,328 2,552,680 Restricted bank balances 15,501 508 Bank and cash balances 10,334,934 9,637,699 54,972,513 47,517,489 Current liabilities Trade and bills payables 12 30,241,725 27,036,648 Accruals and other payables 7,262,263 6,866,909 Contract liabilities 2,005,077 329,736 Bond payables 26,478 11,441 Amounts due to related parties 42,867 25,658 Lease liabilities 402,375 385,519 Bank borrowings 30,068,477 25,108,122 Provisions 356,407 311,608 Financial guarantee 143,567 143,567 Current tax liabilities 60,453 71,092 70,609,689 60,290,300 Net current liabilities (15,637,176) (12,772,811) Total assets less current liabilities 98,438,694 88,264,828
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5 Unaudited Audited 30 June 2026 31 December 2025 RMB’000 RMB’000 Non-current liabilities Bond payables 3,200,000 1,900,000 Deferred income 91,149 338,124 Lease liabilities 874,215 648,596 Bank borrowings 34,256,204 30,247,028 Provisions 1,718,572 1,520,911 Deferred tax liabilities 216,802 153,560 40,356,942 34,808,219 NET ASSETS 58,081,752 53,456,609 Capital and reserves Equity attributable to owners of the Company Share capital 1,772,302 1,772,302 Reserves 35,789,715 34,966,643 37,562,017 36,738,945 Non-controlling interests 20,519,735 16,717,664 TOTAL EQUITY 58,081,752 53,456,609
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6 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2026 1. GENERAL INFORMATION CALB Group Co., Ltd. (ʮ̡ ) is a joint stock limited company registered in the People ’s Republic of China (the “PRC”). The Company ’s H shares have been listed on The Stock Exchange of Hong Kong Limited since 6 October 2022. The address of its registered office and its principal place of business is No. 1 Jiangdong Avenue, Jintan District, Changzhou City, Jiangsu Province, the PRC. The Group have been engaging in the design, research and development, production and sales of EV batteries and ESS products and others. 2. BASIS OF PREPARATION These condensed financial statements have been prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting ” issued by the International Accountant Standards Board (the “IASB”) and applicable disclosures required by the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. These condensed financial statements should be read in conjunction with the consolidated financial statements of the Company for the year ended 31 December 2025 ( “2025 Annual Report ”), which have been prepared in accordance with all applicable IFRS Accounting Standards issued by the IASB. Except as described below, the accounting policies (including the significant judgements made by management in applying the Group ’s accounting policies and the key sources of estimation uncertainty) and methods of computation used in the preparation of these condensed financial statements are consistent with those used in the 2025 Annual Report. 3. NEW AND AMENDED IFRS ACCOUNTING STANDARDS New and amended IFRS Accounting Standards adopted by the Group The Group has applied the following amendments to IFRS Accounting Standards issued by the IASB, for the first time, which are mandatorily effective for the Group ’s annual period beginning on 1 January 2026 for the preparation of the Group ’s condensed consolidated financial statements. Amendments to IFRS 9 and IFRS 7 Contracts Referencing Nature-dependent Electricity Amendments to IFRS 9 and IFRS 7 Amendments to the Classification and Measurement of Financial Instruments Amendments to IFRS Accounting Standards Annual Improvements to IFRS Accounting Standards – Volume 11 The application of these amendments to IFRS Accounting Standards has had no material impact to the Group ’s financial positions and performance for the current and prior periods and/or on the disclosures set out in these condensed consolidated financial statements.
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7 4. REVENUE The Group ’s operation and main revenue streams are those described in the 2025 Annual Report. The Group ’s revenue is derived from contracts with customers. Disaggregation of revenue Disaggregation of revenue from contracts with customers by major products or service line for the periods is as follows: Six months ended 30 June 2026 2025 RMB’000 RMB’000 (unaudited) (unaudited) Revenue from contracts with customers within the scope of IFRS 15 Sales of EV batteries 16,505,781 10,662,346 Sales of ESS products and others 10,578,586 5,756,532 27,084,367 16,418,878 The Group derives revenue from the transfer of goods and services over time and at a point in time in the following major product lines and geographical regions: For the six months ended 30 June 2026 2025 RMB’000 RMB’000 (unaudited) (unaudited) Primary geographic markets – Chinese Mainland 25,899,786 16,092,451 – Asia 615,961 247,211 – Europe 558,617 76,554 – America 5,910 286 – Others 4,093 2,376 Revenue from external customers 27,084,367 16,418,878 Timing of revenue recognition – Products transferred at a point in time 26,791,056 16,380,445 – Services transferred over time 293,311 38,433 Total 27,084,367 16,418,878
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8 5. INVESTMENT AND OTHER INCOME Six months ended 30 June 2026 2025 RMB’000 RMB’000 (unaudited) (unaudited) Interest income on: – Bank deposits 44,673 53,052 – Financial assets at FVTOCI 25,138 19,563 Total interest income 69,811 72,615 Government grants and subsidies 21,288 45,358 Value-added tax additional deduction 21,886 34,188 Compensation from suppliers 13,992 1,295 Insurance compensation income 974 6,479 Others 3,899 1,007 131,850 160,942 6. OTHER LOSSES, NET Six months ended 30 June 2026 2025 RMB’000 RMB’000 (unaudited) (unaudited) Allowance for inventories (303,808) (165,420) Fair value change in financial assets at FVTPL (18,051) 3,580 Net foreign exchange (losses)/gains (56,794) 39,351 Others 358 1,105 (378,295) (121,384) 7. INCOME TAX EXPENSE Income tax expense has been recognised in profit or loss as follows: Six months ended 30 June 2026 2025 RMB’000 RMB’000 (unaudited) (unaudited) Current tax – Chinese Mainland Provision for the period (108,772) (26,359) Current tax – Others Provision for the period (103) (107) (108,875) (26,466) Deferred tax 42,325 (4,539) (66,550) (31,005)
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9 Under the relevant income tax law, the Chinese Mainland subsidiaries are subject to Enterprise Income Tax (“EIT”) at a statutory rate of 25% on their respective taxable income during the periods. The Company and certain subsidiaries operating in Chinese Mainland were approved to be high and new technology enterprises and were entitled to a reduced EIT rate of 15%. The high and new technology enterprises certificates need to be renewed every three years so as to enable the Company and those subsidiaries to enjoy the reduced EIT rate of 15%. 8. PROFIT FOR THE PERIOD The Group ’s profit for the periods is arrived after charging the following: Six months ended 30 June 2026 2025 RMB’000 RMB’000 (unaudited) (unaudited) Allowance for inventories 303,808 165,420 Amortisation of intangible assets 119,601 92,543 Cost of inventories sold 22,557,359 13,539,998 Depreciation of property, plant and equipment 3,417,952 1,956,160 Depreciation of right-of-use assets 49,292 30,953 Employee benefit expenses (including Directors ’ emoluments): Salaries, bonus and allowances 1,123,732 686,166 Retirement benefit scheme contribution 94,630 56,735 9. DIVIDENDS On 28 August 2026, the board of directors proposed an interim dividend of RMB0.6 per 10 ordinary shares for the six months ended 30 June 2026. The total amount of dividend is approximately RMB106,338,000 and it is subject to approval by the Company ’s shareholders at the forthcoming extraordinary general meeting (for the six months ended 30 June 2025: nil). 10. EARNINGS PER SHARE The calculation of the basic earnings per share during the periods is based on the profit for the period attributable to ordinary shareholders of the Company and the number of ordinary shares in issue or deemed to be in issue. (a) Basic earnings per share For the six months ended 30 June 2026 and 30 June 2025, the calculation of basic earnings per share is based on the profit for the period attributable to owners of the Company of approximately RMB935,106,000 (unaudited) and RMB465,957,000 (unaudited) respectively and the number of ordinary shares of approximately 1,772,302,000 (unaudited) and 1,772,302,000 (unaudited) in issue during the respective periods. (b) Diluted earnings per share No diluted earnings per share was presented as the Company did not have any dilutive potential ordinary shares for both periods.
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10 11. TRADE AND BILLS RECEIVABLES 30 June 2026 31 December 2025 RMB’000 RMB’000 (unaudited) (audited) Trade receivables Receivables from third parties 14,283,648 13,223,407 Due from related parties 311,017 43,645 Allowance for doubtful debts (272,603) (273,413) 14,322,062 12,993,639 Bills receivables 1,402,777 1,971,525 Allowance for doubtful debts – (509) 1,402,777 1,971,016 15,724,839 14,964,655 The credit terms, being granted to independent third parties, are generally within 90 days. Each customer has a maximum credit limit. For new customers, payment in advance is normally required. The Group seeks to maintain strict control over outstanding receivables. Overdue balances are reviewed regularly by the Directors. The aging analysis of trade receivables based on the invoice date, and net of allowance is as follows: 30 June 2026 31 December 2025 RMB’000 RMB’000 (unaudited) (audited) 0 to 180 days 13,712,737 12,053,397 181 to 365 days 336,313 696,696 1 to 2 years 181,152 172,595 Over 2 years 91,860 70,951 14,322,062 12,993,639 Reconciliation of allowance for trade and bills receivables: 2026 2025 RMB’000 RMB’000 (unaudited) (audited) At 1 January 273,922 179,697 Acquisition of subsidiaries – 98,176 Reversal for the period/year, net (1,291) (3,951) Written off (28) – At 30 June/31 December 272,603 273,922
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11 12. TRADE AND BILLS PAYABLES 30 June 2026 31 December 2025 RMB’000 RMB’000 (unaudited) (audited) Trade payables Payables to third parties 14,585,812 12,850,143 Due to related parties 398,734 217,249 14,984,546 13,067,392 Bills payables 15,257,179 13,969,256 30,241,725 27,035,648 As at 30 June 2026, bills payables were secured by pledged bank deposits of RMB2,754,812,000 (31 December 2025: RMB2,488,420,000). The aging analysis of trade payables, based on the date of receipt of goods is as follows: 30 June 2026 31 December 2025 RMB’000 RMB’000 (unaudited) (audited) 0 to 180 days 14,931,350 13,009,765 181 to 365 days 22,599 50,805 1 to 2 years 28,609 4,306 Over 2 years 1,988 2,516 14,984,546 13,067,392
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12 MANAGEMENT DISCUSSION AND ANALYSIS I. Industry Landscape In 2026, carbon emission reduction targets were being incorporated into the legal systems and industrial policy frameworks across various countries at an accelerated pace, while investments in the clean energy sector continued to gain momentum. Meanwhile, as 2026 marked the inaugural year of the “15th Five-Year Plan ”, the optimization of China ’s energy structure accelerated significantly. The EV battery and energy storage industries maintained a sustained growth trajectory, with multiple technological roadmaps developing in parallel across various application scenarios. Meanwhile, application markets such as electric vessels, low-altitude aircraft and robots noticeably accelerated, emerging as new growth drivers for the industry. 1. EV battery sector The continued increase in demand in global new energy vehicle market drove the steady growth of the EV battery industry. According to SNE Research, global sales of new energy vehicles reached 9.906 million units in the first half of 2026, representing a year-on-year increase of 5.5%; global EV battery installations amounted to 608.5GWh, representing a year-on-year increase of 20.0%. The International Energy Agency (IEA) forecasts the global sales volume of new energy vehicles to reach 23 million units in 2026, and global new energy vehicle market would continue its steady growth. The industry scale of China ’s new energy vehicle market has grown steadily. According to data from the China Association of Automobile Manufacturers, sales of China ’s new energy vehicles reached 7.446 million units in the first half of 2026, representing a year-on-year increase of 7.3%, and accounting for 49.6% of total new vehicle sales in China, and it is expected that the sales volume of new energy vehicles will reach 19 million units for the full year of 2026, representing a year-on-year increase of 15.2%. During the same period, according to data from the China Automotive Battery Innovation Alliance, cumulative EV battery installations in China reached 335.6GWh in the first half of 2026, representing a year-on-year increase of 12.0%. The production volume of new energy vehicles is expected to reach 18.985 million units in 2026, with the demand for EV batteries reaching 888.7GWh. With respect to the Europe and the United States markets, according to SNE Research, the sales volume of new energy vehicles in the European market reached 2.528 million units in the first half of 2026, representing a year-on-year increase of 29.0%, while affected by the United States tax credit policy, the burden of purchasing a new energy vehicle in the North American market increased, the sales volume of new energy vehicles reached 681 thousand units in the first half of 2026, representing a year-on-year decrease of 20.5%. The IEA forecasts that the sales volume of new energy vehicles in the European market to grow by approximately 20% in 2026, the sales volume of new energy vehicles in Asia-Pacific countries excluding China to grow by more than 50%, and the sales volume of new energy vehicles in the Latin American region to grow by 45%.
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13 2. Energy storage sector Driven by the increasing electrification of traditional sectors such as industry and the power demand from emerging sectors such as AI (Artificial Intelligence) data centers, the market demand for energy storage, which serves as a key stabilizing tool for power systems, has expanded rapidly. According to InfoLink, cumulative global shipments of energy storage cells reached 467.84GWh in the first half of 2026, representing a year-on-year increase of 94.76%; global shipments of energy storage cells are expected to be approximately 1,026GWh in 2026. According to statistics from the China Energy Storage Alliance, in the first half of 2026, the installed capacity of new-type energy storage projects newly put into operation in China reached 21.64GW/58.20GWh; it is projected that under a conservative scenario, China’s cumulative installed capacity of new-type energy storage will reach 371.2GW by 2030, representing a compound annual growth rate of 20.7% from 2026 to 2030; under an ideal scenario, such cumulative capacity is expected to reach 450.7GW by 2030, representing a compound annual growth rate of 25.5%. Overseas markets continued to maintain strong growth momentum. Benefiting from policy support and demand driven by AI data center scenarios, the large-scale energy storage market in the United States grew rapidly; the large-scale energy storage projects in Europe witnessed a concentrated surge in volume under policy stimulus; and emerging markets, including the Middle East and Australia, also contributed significant incremental capacity. 3. Other Markets In the ship market, global shipping decarbonisation has entered a phase of mandatory constraints. The International Maritime Organization (IMO) has explicitly established a net-zero target for 2050. The global electric vessel market is expected to increase from US$4.8 billion in 2025 to US$18.3 billion in 2032. In China market, driven by the “dual carbon ” policy and subsidies for the replacement of ageing vessels, early adoption has been achieved in inland lakes, inland waterways, port areas, and offshore waters. EVTank forecasts that the market size in China will exceed RMB36 billion in 2026. In the European and United States markets, stringent regulations in Europe are driving the early electrification of short-haul ferries and port tugboats, while the leisure culture in North America is leading the growth in demand for electric yachts. These two regions are accelerating the development of the global electric vessel industry, with the application scenarios for the electric vessels continuing to expand.
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14 In the low-altitude market, the low-altitude industry in China has made positive progress, with accelerated breakthroughs in technological equipment and expansion of diversified application scenarios. As a core component of the low-altitude industry, EV batteries serve as an important breakthrough in resolving the technical pain points of payload capacity, flight duration, and safety for low-altitude aircraft. Battery companies and original equipment manufacturers are jointly promoting the implementation of aviation-grade standards, with multiple technologies advancing in coordination to drive the rapid development of the low-altitude industry. Furthermore, the robot industry is at a critical turning point, transitioning from “technological validation ” to “mass production ”, with the market maintaining a growth trajectory. II. Business Review As a leading global new energy technology company, the Group is committed to becoming a creator of energy value. Adhering to the mission of “transcend commerce to benefit humanity ” and the vision of “co-create, win together, achieve excellence ”, the Group will continue to shape a healthy ecosystem for the new energy sector by pioneering innovation and technology leadership, and strive to take on the greatest responsibility in achieving the goals of “carbon peaking and carbon neutrality ” and implementing the new energy vehicle strategy as well as fulfill its responsibilities for energy security and sustainable development. 1. Main business and its applications The Group is a leading global new energy technology company specializing in the research, production, sales and market application development of lithium batteries, battery management systems and related integrated products as well as materials for lithium batteries. As a battery expert, the Group is committed to building a comprehensive energy operation system, providing comprehensive product solutions and full life-cycle management for the all-scenario application market of new energy represented by EV batteries and ESS products. The Group ’s subsidiary, Jiangsu Olive Sensors High-tech Corporation Limited* ( Ϫ ʮ̡ ) ( “Olive Sensors ”), listed on the ChiNext Market of the Shenzhen Stock Exchange (stock code: 300507), and its subsidiaries, focus on the research and development, manufacturing, and sales of high-quality components. With their products covering sensors and accessories, new energy components and thermal management system components, fuel system accessories and automotive interior parts, they have established a diversified product portfolio and are committed to providing professional component supply and collaborative development services for the automotive and new energy markets. For details of the 2026 interim results of the subsidiary, Olive Sensors, please refer to its “2026 Semi-Annual Report ” published on 8 August 2026 on the CNINFO website (http://www.cninfo.com.cn).
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15 2. Major products Passenger vehicle market: Centering on users ’ needs across all scenarios, we have integrated key core technologies, such as ultra-high-energy chemistry system, ultra-safe electrolytes, minimalist top-flow structure, and highly reliable TPP3.0 thermal safety technology, to develop the “UP” battery, which achieves comprehensive leadership in safety performance, driving range, charging efficiency, acceleration performance and cycle life, whilst providing extensive coverage for all-scenario applications of passenger vehicles, thereby establishing industry-leading product competitiveness. Commercial vehicle market: We have established a comprehensive product matrix architecture, covering all scenarios, all segments, and all enabling capabilities. With ultra-high safety, ultra-fast charging and long lifespan, lightweight design, and wide temperature range as the core product competitive strengths, through modular and platform-based technologies and product systems, we have achieved full-scenario coverage from 30kWh to 900kWh for vans vehicles, mini and small trucks, light trucks, buses, medium and heavy trucks, and construction machinery, accurately targeting and satisfying customers ’ core needs and continuously reinforcing our hard-core product competitiveness. Energy storage market: We provide comprehensive product solutions and full life-cycle management for all application scenarios, including power, industrial and commercial, and household applications, AIDC (Artificial Intelligence Data Center) and zero-carbon industrial parks. Our products have four major advantages: high safety, ultra-long life, ultra-high energy efficiency, and high reliability. In the power sector, 314Ah and 392Ah battery cells have continued to achieve large-scale commercial deliveries, while 588Ah and 600+Ah large-format battery cells have entered mass production. In the commercial and industrial sector, 261kWh outdoor cabinets have been exported overseas on a large scale, while residential energy storage products cover the full spectrum of application from 2.7kWh to 20kWh. The energy management platform for zero-carbon industrial parks enables integrated system management and control, with multi-scenario collaboration driving industry development.
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16 Ship market: We develop comprehensive lithium battery solutions for pure electric vessels, with in-house research and production covering battery cells, modules, battery systems, containerized power supplies and battery management systems (BMS), enabling full product coverage across application scenarios, including pure electric, hybrid, energy storage and backup power so as to adapt to the needs of various ship structures. We have developed two principal product series, namely high-rate 2-4C fast-charging and fast-discharging products and high-energy, long-cycle-life products. The relevant products obtained certifications from mainstream international classification societies, including DNV, ABS, BV, RINA and CCS. Low-altitude market: We have employed high-performance “high-energy cylindrical cells ”. The products have advantages such as high energy density, high power performance, high discharge capacity, high safety design, and low heat generation. The cell energy density can reach 310Wh/kg, effectively improving the flight duration of aircraft. They can be matched with a variety of aircraft models in the industry, covering a wide range of eVTOL aircraft, from two-seat models to medium- and large-sized five- and six-seat aircraft. Robot market: We have employed high-performance solid-state battery technology. The products have advantages such as high energy density, stable power output, excellent safety performance, flexible adaptability, and production compatibility, effectively meeting the high energy consumption requirements of robots, while also satisfying the high energy demands of confined spaces such as chest cavity and backpack of humanoid robots. 3. Business achievements During the Reporting Period, the Group achieved revenue of RMB27.084 billion, representing an increase of 65.0% compared to the same period last year, and realized a profit of RMB1.523 billion for the period, representing an increase of 102.2% compared to the same period last year. (1) Continuous innovations in product and technology The Group leverages its leading technology and product capabilities to support the development of the new energy business, and insists on taking the needs of end users and customers and social sustainable development as the pursuit of technological development. The Group drives industry innovation through technological innovation to provide users with products featuring high safety, high reliability and high performance, and develops top-notch technologies and products through continuous innovation, so as to achieve the breakthrough in technological development, continuously boosting the core competitiveness of the Group.
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17 “UP super-charged ”: it is suitable for pure electric and hybrid electric vehicles. The 5C products are exclusively equipped in the Xpeng GX and G9L flagship models, assisting Xpeng in developing all-new pure electric and super extended- range SUVs based on the SEPA3.0 architecture with all models featuring an 800V high-voltage platform as standard. The products are exclusively equipped in the Xpeng MONA L03 pure electric models, and will be comprehensively equipped in all subsequent models of the MONA platform. Furthermore, they have entered the supply system of the Huawei Giant Whale (̶ᗼ ) battery platform, providing highly safe and highly reliable products for Shangjie (ޢ֠Luxeed, and others. “UP high-power ”: completed the development of track-grade BEV products, achieving a discharge power of 2MW and supplying to multiple leading enterprises. Completed the technological development of battery cells featuring a 35C discharge rate, a 16C charge rate, and a cycle life of 6,000 cycles, leading the technological upgrade in the HEV sector. “UP high-energy ”: the high-specific-energy ternary battery developed for the mid-to-high-end large-space sub-market was equipped in the super extended-range models of the Xiaomi Pengcheng series, including the Pengcheng N70 Max and N90 Max. The pure electric range of the extended-range vehicles leads the industry. The “UP high-energy ” 360Wh/kg R46 cylindrical battery cell is expected to achieve mass delivery in 2027. “Boundless ”: overcame bottlenecks in solid-state battery manufacturing processes, completed the batch preparation of 60Ah solid-state battery cells, and significantly enhanced product performance. “ZHIYUAN ”: launched the fourth-generation GL series stacked products for heavy-duty commercial vehicles, featuring a self-developed CIR integrated architecture which, through structural innovation, achieved a high degree of integration and lightweight design for the battery pack and enhanced production efficiency, supporting heavy-duty trucks to realize 2C fast charging and attaining an ultra-long service life of 10 years; took the lead in completing the mass deployment of the 400Wh/kg solid-liquid hybrid battery in commercial vehicles, as well as the ultimate balance between high energy density and high safety performance. “ZHIJIU ”: following the pioneering introduction and mass production of the 314A and 314B battery cells, the new-generation benchmark products, the “ZHIJIU ” 588Ah and 684Ah large battery cells, have been put into mass production, accelerating the transformation of the technological blueprint into large-scale production capacity to better serve application scenarios.
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18 The Group followed the high-quality intellectual property rights development strategy which was deeply integrated with the strategy of “consolidating its leadership in product and technology ”. Focused on the high-quality patent portfolio to build a strong innovation-driven brand, it has established a patent portfolio covering the entire battery industry chain, including battery materials, battery structure, system integration, electrical circuits, BMS, manufacturing process equipment, battery recycling and electronic control components. As of 30 June 2026, the Group had a total of 8,098 patent applications globally. The Group was awarded the Second Prize of the National Science and Technology Progress Award (ኪҦஔආӉᆤɚഃᆤ ). The Group continues to drive the evolution of AI from a “business tool ” to a “core capability ”, accelerating the deep integration of AI with new energy research and development (R&D), advanced manufacturing, and operational management. Through the continuous accumulation of data, algorithms, and knowledge capabilities, AI has been deeply applied in key scenarios such as R&D assistance, quality inspection, equipment operation and maintenance, and operational analysis, driving the transformation of R&D and manufacturing from being experience- driven to data- and intelligence-driven, and continuously enhancing innovation efficiency, manufacturing capabilities, and operational agility. With continuously advanced technologies and products, the Group will reconstruct the industrial ecology, jointly build a zero-carbon future, and steadily enter a new stage of high-quality development jointly driven by multiple scenarios, multiple markets and multiple technologies, injecting strong impetus into the global green transformation. (2) Deep cultivation and expansion of all-scenario business In the first half of 2026, the Group continued to expand its new customers and new application scenarios. Its new products continued to ramp up in volume in sectors such as passenger vehicles, commercial vehicles, and energy storage, driving continuous growth in business scale. At the same time, the Group continuously develops outstanding green and low-carbon products and solutions, and establishes an efficiently operating carbon management system. Passenger vehicle market: the installed capacity recorded steady growth in the first half of 2026, with stable deliveries of projects for Xpeng, Huawei Harmony Intelligent Mobility Alliance (ᒿႆ౽Б ), and Toyota; Xiaomi project commenced mass production and supply; the installed capacity in the overseas passenger vehicle market increased by 84% year-on-year, bringing overseas business expansion to a new stage.
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19 • Mid-to-high-end market segment: 5C UP super-charged cells are exclusively supplied for the Xpeng GX and G9L dual-power SUVs; the Xiaomi Pengcheng ( ᆔ) high-end series and the Shangjie (ޢ֠Z7 series under Harmony Intelligent Mobility Alliance ( ᒿႆ౽Б ) have achieved mass production and supply, and the Luxeed RX project is progressing smoothly, with deliveries expected in the second half of 2026; • Economy market segment: mass production and supply for the Xpeng MONA series; platform projects for customers such as Geely and Changan maintained stable mass production and supply; newly added Leapmotor A10/A05 and new platforms for other customers, with mass production and delivery expected in the second half of 2026; and • International market: stable supply was provided for global vehicle models of customers such as Toyota and Mazda ( ৵І༺), with continuously increasing penetration rates; new overseas platform projects for Volkswagen, Hyundai and others progressed rapidly, and product offerings became increasingly diverse. Commercial vehicle market: shipment volume recorded a year-on-year increase of 225% in the first half of 2026. Through the rapid deployment of new vehicle models, new announcements for 206 models were secured, achieving comprehensive coverage across vehicle models in all segments. • In the light commercial vehicle field: the Group established in-depth collaborations with customers such as Chery, Geely, Dongfeng, Ruichi, SAIC Maxus and King Long, continuously increasing market penetration; • In the heavy commercial vehicle field: the Group engaged in comprehensive and in-depth cooperation with Sinotruk, XCMG, SANY, Shaanxi Automobile, GAC, DeepWay ( ଉΣ ), Lingong, and Liugong on all categories of models, including heavy trucks and construction machinery. To address the core operational pain points such as closed scenarios and mainline transportation, the Group created the HL and GL series of benchmark products, established a vehicle-battery-station-cloud integrated commercial all-scenario ecosystem, promoted innovative business models such as battery banks and financial leasing, implemented a number of scenario-based ecosystem demonstration projects, and jointly built green mines and Zero-Carbon Ports smart logistics demonstration scenarios. These efforts have earned high recognition from the market and customers, and continuously enhanced its brand influence and industry competitive position; and
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20 • In the international market: with superior product performance and full-cycle service guarantee, the market scale in segments such as European rail transit and buses has grown steadily, and the layout for overseas high-end commercial vehicles has continued to deepen, completing project designations from multiple top-tier European and American customers. Energy storage market: in the first half of 2026, the shipment volume continued to achieve steady growth, with overseas installed capacity continuing to rise. • Power energy storage sector: the Group has strengthened deep cooperation at the group level with SPIC, continuously deepened scenario-based cooperation with central state-owned enterprises such as Huadian ( ശཥ), Datang (ࡥand Three Gorges (ࢠand jointly built a multi-scenario ecosystem with EPCs, supply chains, and developers; it has also deepened strategic cooperation with system integrators and top-tier customers in areas such as wind power and photovoltaics; • Power plants sector: relying on demonstration projects, the Group has opened up investment channels for independent energy storage funds and gradually promoted them; • Zero-carbon ecosystem sector: a green power direct connection project was among the first batch to be approved by the government. The Group signed zero-carbon cities cooperation agreements with multiple local governments, pushed forward the construction of source-grid-load-storage and virtual power plant platforms, explored city-level zero-carbon development paths, and built an energy ecosystem; • Industrial and commercial energy storage and household energy storage sectors: capitalizing on the solar-storage integration model, the Group conducted independent R&D for industry-leading grid simulation models, which optimized the operational strategies of energy storage systems and significantly improved overall economic efficiency; household energy storage business has secured project designations from and achieved stable delivery to multiple top-tier customers, demonstrating superior product performance and industry-leading market performance; • AIDC sector: exploring new business scenarios in AIDC, with dedicated 6C high-rate systems precisely matching the backup power requirements of AI computing centers, and injecting new momentum into results growth; and
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21 • International market: the AC/DC energy storage container systems completed the supporting supply for the Japanese market ’s first ultra-high voltage (UHV) front-of-the-meter independent energy storage project; the Group entered the supplier whitelists of top-tier energy storage developers and IPPs (independent power producers) in Europe and other regions; the new generation of “ZhiJiu ” 600Ah+ long-cycle large energy storage cells completed large-scale mass production delivery; the household energy storage and industrial and commercial energy storage product matrixes have been deployed in multiple overseas markets; relying on the product advantages of high energy efficiency and safety performance, the Group has established collaborations with customers in more than ten countries and regions. Meanwhile, the ship market expanded steadily, deeply cooperating on the “1,000-Sail Program ” (ྌ ) of Hubei Port Group ( ಳ̏ಥɹණྠ ) to support the construction of the Electrified Yangtze River; advancing Guangdong Province ’s first 5,000-ton-class pure electric bulk carrier project, facilitating the green shipping upgrade in the Guangdong-Hong Kong-Macao Greater Bay Area; completing the smooth commissioning of projects such as the first domestic CCS-certified carbon fiber electric official vessel, Hong Kong ’s first commercially operated pure electric cargo vessel, the first batch of electric tugboats in the United States and a batch of hybrid offshore engineering vessels in the Middle East. Our “zero-carbon shipping ” product solutions have received wide attention and recognition from the international ship market. For the low-altitude market, we continued to deepen the strategic cooperation with domestic mainstream eVTOL companies such as XPeng Huitian, GOVY, Volant, and Yifei Aviation. We newly secured a supplier nomination from a leading customer, and obtained the exclusive supplier nomination for EV battery products of customers ’ main models. Furthermore, through the innovation of several development and business models, we have effectively advanced the sustained expansion of the low-altitude business. For the robot market, we will also commence the mass delivery for our robot products. (3) Carbon management and sustainable development Focusing on the strategic objective of “Carbon neutrality in core operations by 2030, carbon neutrality in value chain by 2040 ”, the Group was fully committed to seven core directions, including low-carbon product development, full life-cycle carbon footprint management, energy efficiency improvement, clean energy consumption, low-carbon logistics, recycling, and collaborative decarbonization across the supply chain, so as to establish an efficient and well-functioning carbon management system. In terms of green manufacturing, the Group continues to expand the deployment of photovoltaic and industrial energy storage systems, applies biomass energy on a large scale, and introduces energy-saving technical renovation projects in the production process, making efforts to drive down carbon emissions per unit of product.
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22 In terms of green products, adhering to the advanced concept of achieving an optimal balance between energy and resources, the Group incorporated low-carbon standards at the outset and embedded them throughout product life-cycle management, and has newly obtained multiple ISO 14067 Product Carbon Footprint Certifications. In terms of the ESG governance system, the Group upgraded the biodiversity issue to a natural capital issue and comprehensively integrated it into its ESG governance structure. Concurrently, in response to the battery passport provisions under the EU Battery Regulation which will come into effect on 18 February 2027, the Group independently developed its battery passport system and supporting management framework. Currently, the said system and framework have entered the full-process implementation and verification stage, with all construction work expected to be completed in 2026 before officially serving mass production projects. The Group will strictly comply with relevant legal, regulatory, and standard requirements, ensuring that all products exported to the European Union seamlessly meet the new digital compliance demands to safeguard the steady development of its overseas business. In the first half of 2026, the Group was recognized in the 2026 Fortune China ESG Impact List and was included in the S&P Global CSA 2026 Sustainability Yearbook (China Edition). III. Future Prospects The Group is driven by technological innovation and guided by the “AI + Energy ” strategy, adhering to the deep integration of technological innovation and industrial innovation. Propelled by a future-oriented R&D layout, we have established a positive feedback loop mechanism of “new technology and product development – multi-market application – scaled delivery – refined operations – technological iteration and upgrade ”. Focusing on platform-based products, we are building a cross-domain, cross-scenario dynamic power and energy storage product matrix to achieve deep synergy in power and energy storage business, creating cutting-edge product capabilities across all scenarios. At the same time, the Group will continuously explore markets such as ship, low-altitude economy and robot, offer high-safety, high-reliability, and high-performance product solutions, and through safe and efficient batteries, green and low-carbon technologies, the Group will inject strong momentum into new-quality productivity scenarios represented by low-altitude and robot. Continuous innovations in technology and product The Group remains committed to technological innovation, continuously leading the industrial development with advanced technologies.
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23 In terms of high-performance battery technology, the Group will continue to pursue breakthroughs in battery technologies, focusing on enhanced safety, high energy density, high power, ultra-fast charging, long warranty, wide temperature range, and ultra-long service life. It will solidify its comprehensive leadership by developing products with exceptional performance and cost competitiveness. The Group will persistently make breakthroughs in critical technologies for improving efficiency and longevity in energy storage cells, promote the iterative upgrade of ultra-large-capacity cells, and strive for the “photovoltaic-storage co-lifespan ” ( ΈᎷΝྪ ) of energy storage cells, so as to develop the cutting-edge performance and cost competitiveness; the Group will complete the industrialization of high-specific-energy 360Wh/kg high-nickel high-silicon cylindrical batteries, achieve the mass production of 10C+ ultra-fast charging cell solutions to create the ultimate terminal charging experience. The Group will advance the industrialization of 210Wh/kg lithium manganese iron phosphate products with 5C fast charging, break through the energy density boundary capabilities of the LFP system, and support the upgrading demands of customers for high driving range and lightweight design. The Group will continuously advance key technological breakthroughs and commercial application of high-performance all-solid-state batteries, completing the application and promotion of 10Ah-class all-solid-state batteries in the field of robots as well as the batch verification of 400Wh/kg large-capacity all-solid-state automotive products. The Group will continuously deepen efforts in tackling the core technologies of solid-state batteries, focus on iterative upgrades of long cycle performance and cell consistency to continuously improve cell cycle lifespan, and advance the improvement of the mass manufacturing system for the sulfide system, as well as the implementation of large-scale industrialization for the polymer system. In terms of advanced manufacturing, the Group will focus on three directions towards advanced manufacturing, namely, minimalism, extremity and intelligence. Specifically, the Group will develop highly flexible standardized production lines, innovate CTB minimalist process, and pursue breakthroughs in core technologies such as high-speed ultra-wide-width coating as well as dry electrode to reinforce the process solutions for all-solid-state batteries; upgrade full-procedure online inspection systems and deploy mobile AI re-inspection platforms, thereby forming full-process closed-loop management and control to ensure zero missed detection of defects; meanwhile, comprehensively promote the application of online closed-loop systems to realize capability upgrades of product characteristics and process characteristics, and research and apply manufacturing consistency control technologies to comprehensively elevate the level of product consistency. Steady expansion of market and customers across all scenarios In terms of the passenger vehicle market, the Group will continue to increase its efforts in global market development. Closely aligning with regional new energy vehicle consumption demands and regulatory requirements, the Group will iteratively launch battery products with stronger market competitiveness. Meanwhile, leveraging its comprehensive supporting capabilities for all categories of passenger vehicles, the Group will accelerate its engagement with overseas complete vehicle customers, advance the implementation of overseas projects, continuously expand its global business scale, and promote the development of demands for new platform projects, thereby creating a brand-new growth curve for the passenger vehicles business.
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24 In terms of the commercial vehicle market, the Group will leverage one-stop electrification solutions to advance the implementation of an all-scenario ecosystem. (1) In the light commercial vehicle segment: the Group has established stable capability for large-scale delivery. Through an enhanced platform-based cost reduction approach, it will achieve a qualitative shift from “scale expansion ” to “unit profit enhancement ”. (2) Heavy commercial vehicle business: taking the reduction of the full life-cycle TCO (total cost of ownership) for customers as its business logic, the Group will achieve a strategic upgrade from one-off product sales to full life-cycle value operations of vehicles through diversified business models such as heavy-duty truck battery swapping, battery banks and financing leases. It will accelerate the scaled replication and promotion of benchmark scenarios such as green mines and Zero-Carbon Ports, which, coupled with the implementation of the AI smart energy dispatch system, will continuously raise scenario-based competitive barriers; in terms of construction machinery, the Group will continuously consolidate its advantages in heavy-duty equipment such as loaders, and by relying on leading product technologies and hardcore delivery capabilities, it will continuously expand the space for electrification substitution in niche tracks, steadily opening up a second commercial growth curve. (3) In international markets: the Group will seize growth opportunities in the new energy commercial vehicle sector to achieve transition from “exporting the products ” to “exporting the brand ” through the comprehensive implementation of terminal and regional strategies. In terms of the energy storage market, the Group will continue to advance its strategic upgrade from an equipment supplier to an energy solution provider, and guided by AI-driven intelligent decision-making, propel the enterprise ’s transformation from traditional manufacturing into a data-driven energy platform. Centering around technological foundations such as full-chain data perception, energy and carbon monitoring, AI-optimised dispatch and carbon asset management, it will accelerate the implementation of scenario-based solutions including zero-carbon cities, zero-carbon industrial parks, zero-carbon factories, zero-carbon ports, virtual power plants and direct green power connection. (1) For the domestic business, the Group will continue to deepen strategic cooperation with power groups, system integrators, and leading enterprises in wind power and photovoltaics to consolidate the incremental scale of new energy power stations, and simultaneously innovate industrial, commercial and household energy storage/AIDC business models to drive continuous growth in shipments. (2) For the international market, leveraging the established overseas channels, the Group will achieve comprehensive connections and multi-dimensional cooperation with the international leading integrators, developers and owners, and fully achieve the implementation and delivery of liquid-cooled container system in high value markets such as Europe, Japan and United States. The Group will accelerate the market penetration of the household energy storage and industrial and commercial energy storage products, and promote the rapid growth of the energy storage market.
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25 In terms of the ship market, the Group will continue to advance globalization strategy and full-scenario layout, expand its presence in domestic and overseas markets, and deepen the scale effect of “Electrified Yangtze River ”, “Zero-Carbon Ports ” and offshore shipping in China. Meanwhile, the Group will accelerate its overseas operation and deepen strategic collaboration with leading global customers and industry partners. The Group will continue to spearhead the iteration of core technologies such as large-capacity and high-rate battery cells, system safety protection, and intelligent management systems, thereby leapfrogging from product solutions to a full-stack solution of “battery system + battery swapping and charging network + operational services ”. By building a zero-carbon power ecosystem covering inland waterways, coastal waters and ocean-going routes, the Group will become an innovation driver of global shipping decarbonization. In terms of low-altitude market, the Group will continue to focus on the development needs of low-altitude economy, address the pain points within the industry with leading battery products, guide the industry specifications by standard formulation, empower OEMs with a full-stack energy solution, and promote the implementation of low-altitude battery swapping and charging network and full life-cycle system by ecosystem co-construction, fully supporting the large-scale and commercialization development of the eVTOL industry and contributing core energy strength to the China ’s low-altitude economy as it advances toward global leadership. In terms of the robot market, the Group will capture the industry development opportunities, rely on its advanced electrochemistry and system integration technology, focus on the robot-specific energy solutions with high power density, enhanced safety, long life and light weight, deepen its synergy with the leading OEMs, and continuously improve its product competitiveness and expand its market coverage, so as to proactively build the energy capacity targeting the next generation of intelligent equipment. Comprehensively promoting zero-carbon technology and AI intelligent development The Group will deeply advance the transition of the energy structure and improvement in energy efficiency, and effectively increasing the percentage of clean energy consumption. The Group will also pursue the goals of “zero-carbon technology ”, “ecological synergy ” and “systematic innovation ”, continuously develop excellent green low-carbon products and solutions, as well as deploy new energy systems such as zero-carbon industrial parks and zero-carbon cities. Looking forward, the Group will focus on the “AI + Energy Strategy ” to drive AI from being an efficiency enhancement tool to gradually becoming a new engine for technological innovation and industrial upgrading, and accelerate the construction of a new capability system characterized by “AI-driven R&D, AI-driven manufacturing, and AI- driven operations ”. (1) In terms of innovation, the Group will explore the integration of AI with material science, computational simulation, and product design to advance R&D to “intelligent exploration ”, accelerating breakthroughs in new materials, new systems, and new products; (2) In terms of manufacturing, the Group will integrate AI, industrial big data, and digital twins to advance manufacturing from ”automated production ” to “autonomous perception, intelligent decision-making, and continuous optimization ”, thereby building a higher-quality, higher-efficiency, and more resilient advanced manufacturing system; (3) In terms of operation, the Group will promote the deep integration of enterprise data and intelligent agents to advance management from “data visibility ” to “intelligent insights and assisted decision-making ”.
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26 Simultaneously, the Group will continuously consolidate foundational capabilities such as data, computing power, models, and intelligent agents, to gradually build a sustainably evolving intelligent foundation for the enterprise. By leveraging digital and intelligent transformation to drive the upgrading of innovation paradigms, manufacturing models, and operating methods, it will forge new advantages for the Group in facing the future competition in the energy industry. The Group will boost industry innovation through technological innovation, work with partners along the upstream and downstream of the value chain in a concerted effort to build a clean, low-carbon, safe and efficient energy system, making contributions to the development of global climate governance and energy civilization. IV. Financial Review Overview During the Reporting Period, the revenue of the Group increased from RMB16,418.88 million for the six months ended 30 June 2025 to RMB27,084.37 million for the six months ended 30 June 2026, representing an increase of 65.0%; the Group ’s profit for the period increased from RMB752.99 million for the six months ended 30 June 2025 to RMB1,522.77 million for the six months ended 30 June 2026, representing an increase of 102.2%; the basic earnings per share of the Group increased from RMB0.2629 for the six months ended 30 June 2025 to RMB0.5276 for the six months ended 30 June 2026, representing an increase of 100.7%. Financial indicators The key financial indicators of the Group are set out as follows: For the six months ended 30 June (unaudited) Financial indicator 2026 2025 Net sales margin (%) 5.6% 4.6% The net sales margin of the Group increased by 1.0 percentage point from 4.6% for the six months ended 30 June 2025 to 5.6% for the six months ended 30 June 2026. Revenue structure During the Reporting Period, the Group generated revenue from the sales of EV batteries, ESS products and other related products. The revenue of the Group increased from RMB16,418.88 million for the six months ended 30 June 2025 to RMB27,084.37 million for the six months ended 30 June 2026, representing an increase of 65.0%. The increase was mainly attributable to the Group ’s expansion of the customer base and new application scenarios, as well as the continued ramp-up of new products in passenger vehicles, commercial vehicles, energy storage and other applications, resulting in sustained growth in business scale.
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27 1) Revenue by product For the six months ended 30 June (unaudited) 2026 2025 Items Revenue Percentage of revenue Revenue Percentage of revenue (RMB’000) (%) (RMB’000) (%) EV batteries 16,505,781 60.9 10,662,346 64.9 ESS products and others 10,578,586 39.1 5,756,532 35.1 Total 27,084,367 100.0 16,418,878 100.0 During the Reporting Period, the revenue generated from the sales of EV batteries of the Group increased by 54.8% from RMB10,662.35 million for the six months ended 30 June 2025 to RMB16,505.78 million for the six months ended 30 June 2026. The year-on-year increase in the revenue generated from the sales of EV batteries was mainly attributable to the rapid growth in sales volume. During the Reporting Period, the revenue generated from the ESS products and others of the Group increased by 83.8% from RMB5,756.53 million for the six months ended 30 June 2025 to RMB10,578.59 million for the six months ended 30 June 2026. The strong increase was mainly due to the substantial increase in shipment volume attributable to the Group ’s continuous expansion in the ESS products business. 2) Revenue by geographical location of product delivery For the six months ended 30 June (unaudited) 2026 2025 Items Revenue Percentage of revenue Revenue Percentage of revenue (RMB’000) (%) (RMB’000) (%) Chinese Mainland 25,899,786 95.6 16,092,451 98.0 Overseas regions 1,184,581 4.4 326,427 2.0 Total 27,084,367 100.0 16,418,878 100.0 During the Reporting Period, the Group ’s revenue from Chinese Mainland increased by 60.9% from RMB16,092.45 million for the six months ended 30 June 2025 to RMB25,899.79 million for the six months ended 30 June 2026. During the Reporting Period, the Group ’s revenue from overseas regions increased by 262.9% from RMB326.43 million for the six months ended 30 June 2025 to RMB1,184.58 million for the six months ended 30 June 2026. The overall growth in revenue from Chinese Mainland and overseas regions was primarily attributable to the Group ’s expansion of the customer base and new application scenarios, as well as the continued ramp-up of new products in passenger vehicles, commercial vehicles, energy storage and other applications, resulting in sustained growth in business scale.
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28 Financial position 1) Assets The total assets of the Group increased from RMB148,555.13 million as at 31 December 2025 to RMB169,048.38 million as at 30 June 2026, representing an increase of 13.8%, among which, non-current assets increased from RMB101,037.64 million as at 31 December 2025 to RMB114,075.87 million as at 30 June 2026, representing an increase of 12.9%. Such increase was mainly due to the additional property, plant and equipment as the Group continued to invest in new production base projects and existing projects under construction. Current assets increased from RMB47,517.49 million as at 31 December 2025 to RMB54,972.51 million as at 30 June 2026, representing an increase of 15.7%. Such growth was mainly due to an increase in inventories driven by the continued expansion of the Group ’s business. 2) Liabilities The total liabilities of the Group increased from RMB95,098.52 million as at 31 December 2025 to RMB110,966.63 million as at 30 June 2026, representing an increase of 16.7%, among which, current liabilities increased from RMB60,290.30 million as at 31 December 2025 to RMB70,609.69 million as at 30 June 2026, representing an increase of 17.1%. Such increase was mainly due to the increase in trade financing, trade and bills payables, etc., as the Group continued to grow its business scale. Non-current liabilities increased from RMB34,808.22 million as at 31 December 2025 to RMB40,356.94 million as at 30 June 2026, representing an increase of 15.9%. Such increase was mainly due to the increase in syndicated borrowings for projects and bond payables to meet capital requirements for significant projects. LIQUIDITY AND FINANCIAL RESOURCES The operating cash inflow of the Group for the six months ended 30 June 2026 amounted to RMB2,863.60 million, representing an increase of RMB305.61 million as compared to RMB2,557.99 million for the six months ended 30 June 2025, which was mainly attributable to the sustained business growth and increase in profit of the Group. The bank and cash balances (including pledged and restricted bank deposits) of the Group as at 30 June 2026 were approximately RMB13,165.76 million (31 December 2025: RMB12,190.89 million). The total borrowings of the Group as at 30 June 2026, including all bank loans and bond payables, amounted to approximately RMB67,551.16 million (31 December 2025: RMB57,266.59 million). The repayment terms of the bank loans and bond payables are as follows: approximately RMB30,094.96 million are due within one year and approximately RMB37,456.20 million are due after one year. The Group had sufficient liquidity to meet the requirements of its daily liquidity management, repayment of debts due and capital expenditure.
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29 Capital structure The financial management department under the Group is responsible for its financial risk management, aiming to ensure that the liquidity structure of the assets, liabilities and other commitments of the Group could meet its funding needs on an ongoing basis. The borrowings of the Group were mainly settled in Renminbi, while its cash and cash equivalents were mainly held in Renminbi, U.S. dollars, Euro, Thailand baht and Hong Kong dollars. The Group planned to maintain an appropriate portfolio of equity and debt during the period to ensure an effective capital structure. As at 30 June 2026, the outstanding loans of the Group were RMB-denominated loans with approximately 19.9% of these outstanding loans bearing interest at fixed rates and the remainder at floating rates. The Group monitored the capital structure by using the liability-to-asset ratio (i.e. total liabilities divided by total assets) and the debt-to-equity ratio (i.e. net debt divided by equity), with its policies to maintain financial stability and support the sustainable, healthy and rapid development of the Group ’s business. Net debt includes bond payables, lease liabilities, interest-bearing bank and other borrowings and financial guarantee and is net of cash and cash equivalents, with equity being total equity. The liability-to-asset ratio of the Group as at 30 June 2026 was 65.6% (31 December 2025: 64.0%), and the debt-to-equity ratio was 101.0% (31 December 2025: 91.3%). The increase in the liability-to-asset ratio and the debt-to-equity ratio was mainly due to the increased bank borrowings to address the funding needs for the Group ’s sustainable business growth and investment in significant projects. The Group has maintained its financial stability amidst rapid business development. Foreign exchange risk The business operations of our Group are principally located in Chinese Mainland and most of its transactions are conducted in Renminbi. Except for certain bank balances which are denominated in U.S. dollars, Euro, Thailand baht, Hong Kong dollars and other foreign currencies, most of the assets and liabilities are denominated in Renminbi, therefore, the Group ’s foreign exchange risk is minimal. During the Reporting Period, the Group did not experience any material difficulties or impact on its operations or liquidity as a result of fluctuations in currency exchange rates. The Group believes that the Group will have sufficient foreign currencies to meet its foreign exchange needs and will take effective measures to prevent foreign exchange risks. Capital expenditure During the Reporting Period, the capital expenditures of the Group for the six months ended 30 June 2026 amounted to RMB15,820.01 million (for the six months ended 30 June 2025: RMB7,417.70 million), which were mainly used for the construction of production facilities and the upgrade of existing machinery and equipment. The capital expenditures of the Group were mainly funded by the Group ’s own funds, bank borrowings, issuance of bonds as well as cash inflow from the operating activities. Capital commitments During the Reporting Period, the capital commitments of the Group were mainly related to the acquisition of property, plant and equipment. The total of capital expenditures contracted but not incurred as at 30 June 2026 was RMB24,076.71 million (31 December 2025: RMB11,296.96 million).
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30 Restricted assets As at 30 June 2026, the Group had restricted assets with a total carrying amount of RMB23,376.94 million for obtaining bank loans and other bank facilities. These assets include pledged and restricted bank deposits of RMB2,830.83 million, other financial assets of RMB951.60 million, property, plant and equipment of RMB18,471.42 million and right-of-use assets of RMB1,123.09 million. Significant investments held As of 30 June 2026, the Group did not hold any significant investments. Future plans for significant investments and capital assets As of 30 June 2026, the Group did not have any plans for significant external investments and capital assets. Material acquisitions and disposals of subsidiaries and associates During the Reporting Period, the Group had no material acquisitions and disposals of subsidiaries and associates. Contingent liabilities The Group had no material contingent liabilities as at 30 June 2026. CHANGE OF AUDITOR On 9 June 2026, upon consideration and approval at the 2025 annual general meeting, Rongcheng (Hong Kong) CPA Limited (༐(ಥ)ʮ̡ ) was appointed as the auditor for H shares of the Company (the “H Shares ”) for 2026. The term shall commence from the conclusion of the 2025 annual general meeting of the Company until the conclusion of the next annual general meeting of the Company. For details, please refer to the announcements of the Company dated 13 May 2026 and 9 June 2026, and the circular dated 18 May 2026. OTHER INFORMATION Compliance with the Corporate Governance Code The Group is committed to maintaining a high standard of corporate governance and strives to comply with the code provisions (the “Code Provisions ”) as set out in Part 2 of the Corporate Governance Code (the “CG Code ”) in Appendix C1 to the Listing Rules. During the Reporting Period, the Company had complied with all applicable Code Provisions of the CG Code, save for the deviation from Code Provision C.2.1 of the CG Code, which stipulates that the roles of chairman and general manager should be separate and should not be performed by the same individual.
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31 Liu Jingyu is the chairwoman and general manager of the Company. The Directors believe that vesting the roles of both chairwoman and general manager in the same person is beneficial to ensure consistent leadership within the Group and enable the Group to formulate overall strategic planning more effectively and efficiently. The Directors also believe that the current arrangement will not impair the balance of duties and authorities and the structure will enable the Company to make decisions and implement them in a timely and effective manner. Under the leadership of Liu Jingyu, the Board works effectively and performs its responsibilities to discuss all important and appropriate issues in a timely manner. In addition, as all major decisions are made in consultation with members of the Board and the relevant Board committees, and there are three independent non-executive Directors on the Board offering independent views, the Board is therefore of the view that there are adequate safeguards in place to ensure sufficient balance of powers within the Board. The Board shall nevertheless review the structure and composition of the Board from time to time in light of prevailing circumstances, to maintain a high standard of corporate governance practices of the Company. The Board will continue to review the effectiveness of the Company ’s governance structure to assess whether it is necessary to separate the responsibilities of the chairman and general manager. Compliance with the Model Code for Securities Transactions by Directors and Supervisors The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers (the “Model Code ”) as set out in Appendix C3 to the Listing Rules as its code of conduct regarding securities transactions of the Company by the Directors and supervisors. Having made specific enquiries to all the Directors and supervisors, the Directors and supervisors confirmed that they have complied with the Model Code during the Reporting Period. Employees and Remuneration Policy The Company upholds the core values of “sincerity, efficiency and win-win cooperation ”, thoroughly implements “Culture and Talent Strategy ”, as well as devotes itself to respecting and cultivating talents, providing a development platform for willing and capable employees, and effectively and proactively performing social responsibilities. The Company has established a comprehensive remuneration and benefit management system, and has built a remuneration and benefit system featuring both external competitiveness and internal fairness. Furthermore, the Company comprehensively assesses the employees ’ abilities and development potential through a transparent and fair promotion mechanism in combination with the employees ’ values, performance, competency and potential for promotion, achieving the collaborative matching between the talents and the Company. The Company has implemented a salary adjustment system that is externally competitive, internally fair, and individually balanced to maximize the potential of the team and individuals. The Company continues to optimize a hierarchical and classified talent incentive system, implements differentiated incentive strategies for different employee categories, constantly enhancing their sense of belonging, accomplishment and honor and achieving mutual growth of the employees and the Company. As of 30 June 2026, the total number of employees of the Group was 14,296.
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32 Purchase, Sale or Redemption of Listed Securities of the Company During the Reporting Period, neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company ’s listed securities (including sale of treasury shares as defined in the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules ”)). As of the end of the Reporting Period, the Company did not hold treasury shares. Proposed implementation of H Share full circulation by the Company On 5 February 2026, the Board of the Company has considered and approved the proposed implementation of the conversion of 207,102,914 Domestic Shares of the Company held by certain Shareholders of the Company into H Share of the Company (the “H Share Full Circulation ”), and has submitted the filing application documents to the China Securities Regulatory Commission for the H Share Full Circulation in February 2026. The Company will make further announcement(s) on the progress of the H Share Full Circulation and the conversion and listing in accordance with the requirements of the Listing Rules. For details, please refer to the announcement of the Company dated 5 February 2026. Interim Dividend The Board recommends the payment of an interim dividend for the six months ended 30 June 2026. Based on the total share capital of the Company as at the record date (the “Record Date ”) determined for the implementation of the 2026 interim profit distribution plan (being 1,772,301,858 shares as at the date of this announcement), a cash dividend of RMB0.6 (tax inclusive) per 10 shares of the Company is proposed to be distributed to all Shareholders, amounting to an aggregate cash dividend of approximately RMB106,338 thousand (the “2026 Interim Dividend ”). The 2026 Interim Dividend will be denominated and declared in RMB, paid in RMB to the holders of Domestic Shares, and paid in Hong Kong dollars to the H shareholders of the Company (the “H Shareholders ”). The actual amount of the proposed interim dividend for H Shares distributed in Hong Kong dollars shall be converted based on the average benchmark exchange rate of RMB to Hong Kong dollars as announced by the People ’s Bank of China for the five business days prior to the extraordinary general meeting (the “EGM”) held by the Company to consider and approve the distribution of the 2026 Interim Dividend. All treasury shares held by the Company (if any) are not entitled to the 2026 Interim Dividend. The 2026 Interim Dividend is subject to approval by the Shareholders of the Company at the EGM. The Company will separately publish an announcement containing the information of the Record Date, book closure dates and distribution date for the dividend distribution to the Shareholders according to relevant laws and regulations, the Hong Kong Listing Rules and the Articles of Association once such dates are determined by the Company.
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33 Events After the Period After due and careful consideration, our Directors confirm that, there has been no material adverse change in financial or trading position or prospects of the Company since 30 June 2026 to the date of this announcement. Audit Committee Reviews Interim Results The Company has established the Audit Committee (the “Audit Committee ”) with written terms of reference in compliance with Rules 3.21 and 3.22 of the Listing Rules and Code Provision D.3.3 of the CG Code. The Audit Committee consists of three independent non-executive Directors including Dr. Wang Susheng, Dr. Chen Zetong, and Dr. Xiao Wen and is currently chaired by Dr. Wang Susheng with appropriate professional qualifications as required under Rules 3.10(2) and 3.21 of the Listing Rules. The Audit Committee has reviewed the accounting policies adopted by the Group. The Audit Committee has also discussed matters relating to risk management, internal control, review of the appointment of auditors, auditors ’ remuneration and financial reporting. The Audit Committee has reviewed and agreed on the unaudited interim condensed consolidated financial information for the Reporting Period. PUBLICATION OF INTERIM RESULTS AND INTERIM REPORT The interim results announcement is published on the websites of the Stock Exchange (www.hkexnews.hk) and the Company (www.calb-tech.com). The interim report of the Company for the six months ended 30 June 2026, containing all the information required by the Listing Rules, will be made available on the above websites in due course, and will be despatched to the Shareholders who have already provided instructions indicating their preference to receive hard copies in due course. By order of the Board CALB Group Co., Ltd. Liu Jingyu Chairwoman of the Board, Executive Director and General Manager Changzhou, PRC 28 August 2026 As at the date of this announcement, the Board comprises Liu Jingyu and Dai Ying as executive Directors; Hu Jing, Li Jiancun and Xie Jieping as non-executive Directors; and Dr. Wang Susheng, Dr. Chen Zetong and Dr. Xiao Wen as independent non-executive Directors.