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August 2026 Investor Presentation Horizon Construction Development
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2 Disclaimer This material is prepared by Horizon Construction Development ( “the Company” or “HCD”, together with its subsidiaries, the “Group”) and has not been independently audited. This document contains confidential and proprietary information, and its contents have not been verified by an independent third party. The Company does not guarantee the accuracy, fairness and completeness of the information contained herein and does not have any obligation to update or revise the forward looking statements contained herein in the future, nor does it make any explicit or implicit representation or guarantee as to the fairness, accuracy, completeness or correctness of the information or views contained herein. Therefore, people should not rely on the fairness, accuracy, completeness or correctness thereof. The information contained in this document is subject to change without notice, and will not be updated in connection with significant progress made after the marketing. In addition to descriptions of historical facts, this material contains certain forward looking statements. Such statements often involve some known or unknown assumptions, risks and uncertainties, most of which are beyond the control of the Company. You are kindly reminded not to unreasonably rely on these forward looking statements as they may differ significantly from reality. Note: Unless otherwise specified, all monetary amounts stated herein are denominated in RMB.
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3 • Horizon Construction Development (“HCD”) has been in the dominant position in China’s equipment operation service industry for years. – Total asset reaches about RMB35.80 billion, and the volumes of aerial work platforms (“AWPs”) is leading globally; – Established 544 branches globally; – Cumulatively served over 430,000 clients. HCD: The leading comprehensive equipment operation service provider in China Upstream manufactures External equipment resources • Cumulatively served over 430K clients globally, including approx. 7.7K overseas clients • Covering multi-scenario demands Downstream clients1 Multi-category one-stop comprehensive operational services provider1 Factory & logistics Green energy Transportation construction Marine & shipyards Municipal sanitation Mining program Total Asset 35.80 Billion 202K units Aerial work platform (Leading globally2) 1,207K tons Neo-excavation support system (Leading in China) 596K tons Neo-formwork system (Leading in China) 10K units forklift, earth-moving machinery, mining equipment, road equipment, etc. Global Outlets 544 • Across China and 10 overseas countries Data center Logistics facilities Commercial office Financial leasing companies Notes: 1. Data for 2026H1; 2. According to 2025 ACCESS50 (Global Top 50 AWP Rentals) by UK KHL Group. Sales & lease demand Diverse services
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4 Contents 1 Results Overview 2 Business Analysis
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5 52% 66% 26% 19%22% 15% 2025H1 2026H1 Asset mgt and other services Engineering and technical services Operating lease services 86% 77% 14% 23% 2025H1 2026H1 China Overseas Revenue structure (by region) 43.5 40.2 2025H1 2026H1 Revenue performance • In the first half of 2026, the Company recorded a revenue of approx. RMB4.02 billion, with a year-on-year decrease of approx. 7.5%. • In the respect of revenue by region, the proportion of overseas revenue has increased to approx. 23%. • In the respect of revenue by business type, the proportion of operating lease services increased year-on-year, while the proportions of engineering and technical services and asset management and other services decreased. Total revenue (RMB'00 million) Revenue structure (by business)
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6 • Affected by market conditions, the rental prices in the mainland China’s market continued the downward trend throughout the year, while the utilization rate of AWPs and neo-formwork system saw increase year-on-year. • During the reporting period, the operating lease services revenue increased approx. 16.4% year-on-year, with the domestic aspect up by approx. 3% after excluding overseas aspect. Revenue by business segment – operating lease services 66.3% 70.8% 2025H1 2026H1 +453bps Domestic market rental price index below the boom-bust line1 64.0% 65.8% 2025H1 2026H1 +180bps 9,061 8,289 2025.6 2026.6 -8.5% Average utilization rate Domestic market rental price index1 Average utilization rate Main asset for rental ②: Neo-formwork system Main asset for rental ①: Aerial work platform Revenue of operating lease services (RMB’00 million) 22.7 26.4 17.3 17.9 2025H1 2026H1 Revenue (incl. overseas) Revenue (excl. overseas) Note: 1. Source: China Construction Machinery Association, and China Construction Materials Rental Contractor Association 2025 January 2026 June Boom-bust line (50)
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7 Revenue by business segment – engineering and technical services • The Company has implemented a proactive scaling-back strategy for its material-related businesses in mainland China, by proactively phasing out low-value-added engineering businesses in addition to the disposal of materials. Therefore, the revenue of engineering and technical services witnessed an obvious decrease year-on-year. Revenue of engineering and technical services (RMB’00 million) 11.4 7.7 2025H1 2026H1 1,371 1,207 2025H1 2026H1 -12.0% 638 596 2025H1 2026H1 -6.7% Main material asset ①: Neo-excavation support system Equipment volume (thousand tons) Main material asset ②: Neo-formwork system Equipment volume (thousand tons)
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8 6.6 3.3 2.9 2.9 2025H1 2026H1 Trading and other services revenue Asset mgt services revenue 59,270 44,380 2025H1 2026H1 6.2 2,438 2,415 2025H1 2026H1 Data source: iFind 9.5 Revenue of asset management and other services (RMB'00 million） Number of AWPs under asset management model Average domestic prices of scrap steel prices in H1 were broadly flat YoY (RMB/ton) • The Company’s asset management services contributed approx. RMB0.62 billon of revenue, with a year-on-year decrease of approx. 34.6%, primarily due to the prudent reduction in the management scale of equipment entrusted by peers in response to the downturn in the domestic market. • During the reporting period, the Company continued to optimize the asset structure, and then the trade and other services revenue generated from, e.g., the sales of disposed equipment and materials, amounted to approx. RMB0.29 billion, remaining relatively stable year-on-year. Revenue by business segment – asset management and other services (Unit)
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9 Gross profit margin performance • During the reporting period, the Company’s domestic gross profit margin improved and the proportion of high-margin overseas business further increased, leading the overall gross profit margin to experience increment compared to the same period of last year. • There were no material changes to the Company’s accounting policies with respect to depreciation during the period. 21.6% 27.8% 2025H1 2026H1 17.8% 23.3% 2025H1 2026H1 45.4% 43.2% 2025H1 2026H1 Gross profit margin of the Company Gross profit margin of domestic business Gross profit margin of overseas business
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10 0.35 0.37 2025H1 2026H1 19.7 19.0 2025H1 2026H1 Profitability performance • In the first half of 2026, EBITDA decreased by approx. 3.3% year-on-year, while net profit increased by approx. 3.1% year-on-year. EBITDA (RMB'00 million) Net profit (RMB'00 million)
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11 8.2 9.6 2025H1 2026H1 9.6 3.6 2025H1 2026H1 17.8 13.2 2025H1 2026H1 Free cash flow performance • In the first half of the year, the Company’s operating net cash flow declined year-on-year, while the capital expenditure slightly increased, resulting in a year-on-year decrease in free cash flow. CAPEX (RMB'00 million) Free cash flow1 (RMB'00 million) Operating net cash flow (RMB'00 million) Note: 1. Free cash flow is calculated by deducting capital expenditure from operating cash flow
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12 Condensed Balance Sheet (RMB'00 million) 30 Jun 2026 31 Dec 2025 Change Total assets 358 364 -1.6% Equipment and material for leasing and services 203 209 -3.1% Trade receivables, notes receivables and contract assets 84 86 -1.7% Total liabilities 247 250 -1.2% Total equity 111 113 -2.3% Equity attributable to owners of the parent 111 113 -2.3% Net assets per share (RMB/share) 3.53 3.61 -2.2%
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13 Condensed Income Statement (RMB'00 million) 2026H1 2025H1 Change Revenue 40.2 43.5 -7.5% EBITDA 19.0 19.7 -3.3% Net profit 0.37 0.35 +3.1% EPS (RMB/share) 0.012 0.011 +9.1% ROA 0.2% 0.2% +0.0pct ROE 0.7% 0.6% +0.1pct
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14 Condensed Cash Flow Statement (RMB'00 million) 2026H1 2025H1 Change Net change in cash and cash equivalents -0.9 3.9 -123.7% Net cash flows from operating activities 13.2 17.8 -25.7% Net cash flows from investing activities -5.8 -8.6 32.1% Net cash flows from financing activities -8.2 -5.2 -57.8% Effect of foreign exchange rate changes, net -0.1 -0.1 -78.3% Cash and cash equivalents at the end of the period 14.3 21.8 -34.4%
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15 1 Results Overview 2 Business Analysis Contents
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16 1. Domestic business maintained steady adjustments and resiliently responded to the environment. 2. Overseas business operating system continues to be strengthened, building a new engine for growth. Highlights
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1. Domestic business maintained steady adjustments and resiliently responded to the environment.
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18 Source：《IPAF Rental Market Report 2026》 451,341 595,188 669,194 710,057 36% 32% 12% 6% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 0 100000 200000 300000 400000 500000 600000 700000 800000 2022 2023 2024 2025 Existing volume of AWPs in China YoY change The existing volume of aerial work platforms in China continues to grow Domestic supply and demand pattern unchanged Supply Demand Take AWPindustry as an example： • Existing manufacturers in the industry: affected by foreign anti-dumping measures • New manufacturers entering to the industry: adding new capacity to the market • Small and medium-sized rental companies: relying on manufacturers for financial support, facing great cash flow pressure, and reducing prices to survive …… • Affected by factors such as the external environment, the supply and demand pattern of the domestic equipment operation industry has not changed. • The growth rate of domestic aerial work platform volume has outpaced demand growth, leading to severe "involution" competition among most companies in the industry. The market environment in mainland China
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19 Domestic business demand is broad and remains resilient • The Company's domestic revenue has long been derived from a wide range of scenarios and orders in the industrial and infrastructure sectors, while the high-risk real estate sector continues to contribute relatively little to the Company’s operating leasing business revenue. Furthermore, the Company has long relied not on a single major client, but on a broad base of business demand. Domestic Revenue Breakdown by Scenario and Source Top 5 client (entity-level) concentration rate 2.6% 3.4% 3.3% 3.5% 2024 2025 2025H1 2026H1 72.2% 18.7% 4.8% 2.6% 1.7% Industrial Infra & Municipal Daily operations & others Commercial property Residential property 2024 2025 2026H1
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20 • General equipment: Upgraded from fragmented store-level engagement to joint development with key accounts, with dedicated relationship managers. Building a "1+X" product solution portfolio to enhance value creation. • Neo-excavation support system: Focusing on high-value rental clients, infrastructure developers and bridge & road contractors, with a particular emphasis on SOEs and central government-affiliated entities. • Neo-formwork system: Advancing "Headquarter-to-Headquarter" strategic cooperation, deepening integrated service models, and providing customized formwork engineering solutions to clients. • Fully leveraging the Company’s unique edge in the equipment rental sector, we will deepen strategic collaboration with NKAs (national key-account clients) and SKAs (super key-account clients) to enhance client loyalty and secure more recurring revenue. Build on our inherent strengths to deepen relationships with quality clients and enhance revenue sustainability NKA (National KA) SKA (Super KA) Regular clients Micro and small-sized clients Visit by Deputy GM of CSCEC 8th Bureau Strategic partnership with China Railway 25th Bureau Tiered client management …
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21 • Through multiple initiatives including pricing management, performance reviews and asset optimization, the Company is streamlining the business mix—expanding high-efficiency areas and shrinking low -efficiency ones—to restore domestic gross margins. Business structure optimization has been gradually translating into margin improvement 17.8% 23.3% 2025H1 2026H1 Domestic gross profit margin +542 bps1 General equipment-related business Material asset-related business Exiting low-margin engineering businesses while increasing the share of higher-margin operations focusing on high-margin orders through rental price floor monitoring and order-level gross margin KPI Taking neo-formwork systems global while trimming low- efficiency domestic business UAE Malaysia Saudi Arabia Thailand Neo-formwork system go-global Further scaling down the proportion of entrusted equipment Upgrading diesel-driven boom-lifts to electrified model to boost efficiency Disposing or redeploying low- efficiency domestic equipment to overseas when scaling up high-efficiency products Secured multiple contracts for the lower Yalong River steel trestle bridge project, with 80,000 tones of materials already delivered Note: 1. Changes are based on unrounded gross margin data.
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22 Launching an AI strategy to progressively boost operational productivity • AI has been elevated to a company-level strategic priority for HCD. Currently, the Company will first focus on core business scenarios, improve the efficiency of each business link through AI single-point tools, and build a foundation for intelligent agent application technology. • The next phase will involve upgrading from traditional human-machine interaction to a multi-agent collaborative network to automate and intelligentize complex business processes, significantly improving end-to-end processing efficiency. AI recognition: the off-hire photo is invalid because the equipment's left edge is cropped out Impact: improved review efficiency and reduced disputes over loss liability Example of AI-driven efficiency: Asset condition check and loss determination after return 3 3 8 12 18 Other functions Financial center Business support IT tech Asset mgmt Applicable scenarios for AI tech 44 AI-applicable efficiency scenarios have been identified and are being gradually deployed. Examples include intelligent client assistants, telemarketing support, rental order validation, maintenance work order verification, and off-hire asset inspection…
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23 Through lean management measures, the company's cost-to-revenue ratio has been optimized • Through optimizing domestic warehouse layouts and implementing refined logistics management, the cost efficiency for operating leasing services has been improved. Logistic and lifting cost ratio1 Streamline of warehouse management Optimized outlet assessment Standardized infrastructure Logistics & warehouse management Chartered transport Based on updated order data and warehouse mapping, 95 charter vehicles are covering 86 outlets Innovative transport capacity and models 1 Pilot program for new energy recovery trucks Lower energy and maintenance costs deliver ~20% annual cost savings per vehicle vs. fuel-powered models. Optimized supplier resources Expanding capacity resources and streamlining procurement and pricing workflows. Evaluate based on criteria such as asset volume, dispatch rates, transport costs and size Upgrade the standard & supplier pool to decrease the infrastructure cost 2 1 2 3 Note: 1. Refers to the logistics and lifting costs as a percentage of revenue 7.0% 6.5% 2025H1 2026H1 504 467 2025H1 2026H1 Streamline the domestic outlets 504 467 2025H1 2026H1
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24 Prudently controlling overall capital expenditures and the scale of domestic asset under management • Based on factors within the domestic operating leasing industry environment, the Company proactively control the scale of domestic asset under management and imposed strict disciplinary controls on total capital expenditure to ensure a safe and stable debt-to-asset ratio. 8.2 9.6 2025H1 2026H1 305.2 295.2 2025 2026H1 Capital expenditure (RMB'00 million) Total domestic assets (RMB'00 million)
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25 The Company is equipped with the industry-leading funding capabilities • Medium and small-sized peers account for around 50% of players in the domestic industry, which are weak in funding with high leverage and relying on financing credit from manufacturers to sustain their operations. • The Company has maintained independent funding capabilities without relying on manufacturers. In 2026H1, our financing structure kept optimized and credit sources remained abundant. During the period, the number of collaborative institutions increased to 107, among which there were 20 overseas institutions; the average financing duration maintained stable, and the interest rate of loan newly-added was improved remarkably. 3.9 4.3 5.1 5.2 4.8 4.48% 4.20% 3.99% 2.68% 2.59% 0% 1% 2% 3% 4% 5% 2 3 4 5 6 7 8 9 10 2022 2023 2024 2025 2026H1 Average financing duration (year) Interest rate of newly-added loan (%) 86 87 17 20 30 40 50 60 70 80 90 100 110 120 2025 2026H1 Mainland China Outside of mainland China 107103 Interest rate of newly-added loan and average financing duration Number of collaborative institutions
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26 Capital structure • During the reporting period, the Company’s leverage ratio maintained steady within the targeted control range, and the cash and cash equivalents remained adequate. 68.9% 69.1% 2025 2026H1 15.2 14.3 2025 2026H1 Asset-to-liability ratio Cash and cash equivalents (RMB'00 million)
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27 The industry is still in the phase of bottoming out. The Company will position itself to adapt to future changes • The current domestic industry environment remains challenging, but both the sales side and rental prices are gradually entering a bottoming-out phase. • The Company will leverage a capital structure superior to that of our peers and maintain a prudent operational stance to prepare for potential future possibilities. 129,889 95,964 61,323 36,202 2023 2024 2025 2026H1 Domestic sales volume of major Chinese AWP manufacturers (units) 11,737 8,289 2024-01 2024-08 2025-03 2025-10 2026-05 Domestic rental price index of AWP (from January 2024 to June 2026) 12.9 30.0 2024-01 2024-08 2025-03 2025-10 2026-05 Domestic rental price index of ring-lock scaffold (from January 2024 to June 2026) Boom-bust line (50) Source: China Construction Machinery Association and China Construction Materials Rental Contractor Association
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2. Overseas business operating system continues to be strengthened, building a new engine for growth.
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29 • The fixed asset investment and construction demand in Southeast Asia, Middle East and North Africa continue to expand. • It is expected that the demand for equipment operation services in these markets will continue to grow. Malaysia Data center Saudi Arabia Photovoltaic industry UAE Smart city Vietnam City upgrade Indonesian Battery manufacturing Thailand Power Grid upgrade Construction demand in overseas markets we have entered:Infrastructure development index of “Belt and Road” cooperating countries in 2025 (Top 25) Overseas market environment 110 120 130 140 Hungary Bangladesh Morocco Mongolia Kenya Peru Ghana Turkey Iraq Serbia Kuwait Egypt Cambodia Singapore Kazakhstan Uzbekistan Tanzania Nigeria Algeria Thailand Brazil UAE Malaysia Vietnam Indonesia Saudi Arabia Source: “One Belt, One Road” National Infrastructure Development Index Report 202 5, by China Foreign Engineering Contractors Association
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30 Our vision: Committed to building a world-class comprehensive equipment operation service provider Phase 1 Phase 2 Phase 3 Absolutely leading in China market Explore the Southeast Asian market Equipment operation with selective categories First-class global provider of comprehensive equipment operation services, with a multinational business group structure Absolutely leading in China market and Southeast Asia market Expand into new markets with the Middle East and North Africa region gradually taking shape Comprehensive equipment operation • In the future, under the "3+3+3" strategy1, the company is committed to building a first-class comprehensive operation service provider across multiple national markets. Note: 1. Formulated at the beginning of 2024.
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31 • In line with the Board's overseas strategy, the company has entered into the markets of Indonesia, Malaysia, Vietnam, Thailand, Saudi Arabia, the UAE, Turkey, Kazakhstan, Tanzania and Morocco, rapidly expanding its business network, workforce and assets. • The overseas team will be further localized and internationalized, attracting senior talents with international management an d operational experience in the overseas leasing industry. ~RMB5.4 billion of AUM scale1 ~19 thousand units of equipment2 77 overseas branches 1,484 talents Over 89% of localization Markeon Moore Markeon Moore joined us in February 2026 as the Senior Specialist in Lean Operations, bringing over 12 years of industry experience from United Rentals, where he most recently served as Director of Operational Excellence. Building an international high-level talent team Ahmed Shabrawi Ahmed Shabrawi joined us in April 2026 as Country Manager of the Saudi Arabia Business Department, bringing extensive management experience in the international equipment rental industry, including key leadership roles at Aggreko, Hertz Dayim Equipment Rental, Rapid Access (Loxam Group) and other top-tier firms. Overseas business layout overview (As of 30 June 2026) Overview of overseas presence Note: 1. Original asset value; 2. Including AWP, mining and other equipment.
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32 AWPs, 44% Non-AWP equipment, 26% Materials , 29% Structure of asset under mgmt (By original asset value) Create a multi- category, one- stop service platform A fleet of over 10K AWPs in overseas More than 4,000 other types of equipment • Leveraging years of experience in domestic operating leasing services, the Company has expanded its overseas market presence, starting with AWPs and gradually extending to a wider range of products including mining machinery, earthmoving equipment, telehandler and power equipment. We have already deployed over 4,000 equipment other than AWPs in overseas markets, forming a multi-category, one-stop equipment service platform. Developing a multi-category business model overseas
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33 • Criteria for identifying value-customers: industry position, professional qualifications, potential cooperation amount, settlement and payment history... • Deeply engage with value-customers and provide multi-category, one-stop solutions. • In the overseas business department, customer segmentation and classification management is promoted based on customer value and risk dimensions. • Deeply engaging with value-customers and enhance customer retention through one-stop solutions. • Controlling the collaboration size of high-value, high-risk clients, exiting low-value/high-risk clients, and accompanying bedrock customers in long-term growth. Focus on developing local value-customers High-output value, high-risk customers Value- customers Low-output value, high-risk customers Bedrock customers Targeting the needs of high-value customers and enhancing one-stop solution capabilities. Dehum idifier Power Generator Boom- lift Scissor -lift Data center Ringlock- Scaffold Industrial air conditioner Boom- lift Scissor -lift Oil & Gas Ringlock -Scaffold BulldozerExcavator Fork lift Truck crane Loader Power Genera tor Scissor -lifts Photovoltaic power station Fork lift Piledriver Earthmoving Equipment Risk Output Value High Low High Low • Establish a key account marketing organization with dedicated personnel to develop valuable clients. • Improve service quality and enhance customer retention.
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34 • As business branches, assets and management systems in each country are gradually put in place, most of the countries that the Company has tapped into have formed a local-leading business scale and entered a stable and good operating state. Malaysia Thailand Vietnam Indonesia Saudi Arabia UAE Turkey No. of branches 12 8 13 10 16 11 4 AUM2 （RMB'00 million） 7.8 4.7 6.3 6.8 15.1 12.6 0.7 Equipment units3 >4,100 >3,000 >2,100 >1,900 >4,000 >2,500 900 Number of collaborated value- customers 30 12 23 8 34 16 15 Overview of overseas countries (countries already established presence)1 Note: 1. As of 30 June 2026; 2. Original asset value; 3. Including AWP, mining and other equipment. Overseas business performance in each country
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35 • In the first half of 2026, the Company further expanded into new overseas markets, entering the Moroccan, Tanzanian and Kazakhstani markets and gradually deploying its "people, branches and equipment". It is expected to officially enter the Brazilian market in the second half of the year. New target markets Morocco Tanzania Kazakhstan Brazil No. of branches 1 1 1 Expect to enter the Brazilian market in the second half of the year. AUM2 （RMB'00 million） 0.1 0.1 0.2 Equipment units3 46 30 88 Overview of overseas countries (countries recently established branches)1 Note: 1. As of 30 June 2026; 2. Original asset value; 3. Including AWP, mining and other equipment.
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36 • In the first half of 2026, as the operating system in existing overseas countries was gradually improved, the scale of overseas business rapidly increased, achieving revenue of approximately RMB 920 million, representing a year-on-year increase of approximately 54.7%, and has formed a balanced development pattern between the Southeast Asia and Middle East regions. 6.0 9.2 2025H1 2026H1 Revenue of overseas business (RMB’00 million) Overseas revenue breakdown by country in 2026H1 Overseas business revenue contribution becomes prominent Saudi Arabia, 27.0% UAE, 25.8% Indonesia, 17.0% Malaysia, 11.4% Vietnam, 9.9% Thailand, 7.5% Others, 1.3%
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37 Profitability of overseas business • In the first half of 2026, the Company’s overseas business achieved approx. RMB76 million, increasing approx. 38% year-on-year from the same period of last year after excluding the expense accruals 1 Note: 1. In view of the increasing maturity of the Group's overseas operations, the Group has allocated to the overseas segment certain expenses — including senior management compensation and interest costs — based on the segment's utilization of headcount resources and funding requirements for trade receivables. Impact of expense accruals1 on overseas business profits (RMB’00 million) Net profit of overseas business (RMB’00 million, incl. expense accruals1 impact) 0.55 0.76 - 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00 2025H1 2026H1 2025H1 2026H1 (0.58) (1.13) 2025H1 2026H1 +38% YoY
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38 Overseas business growth plan Overseas business targets in 2026 Overseas Revenue YoYgrowth by over 50% Overseas Net profit YoYgrowth by over 30% Overseas Assets Accounts for 20% of total assets Note: The forecast data contained on this page represents only the current expectations of the Company's management. Please refer to the full text of the "Disclaimer" on page 2 of the homepage materials for details. The Company has no obligation to update these forecasts.
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39 Q & A
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40 Website: www.hongxinjianfa.com IR Email: hcd-ir@fehorizon.com Contact us