Earnings release
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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. ʮ̡ HORIZON CONSTRUCTION DEVELOPMENT LIMITED (Incorporated in the Cayman Islands with limited liability) (Stock Code: 9930) INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2026 The board of directors (the “Board ”) of Horizon Construction Development Limited (the “Company ”) hereby announces the unaudited interim results of the Company and its subsidiaries (the “Group”) for the six months ended 30 June 2026, together with the comparative figures for the six months ended 30 June 2025. This announcement, containing the full text of the 2026 interim report of the Company, complies with the relevant requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited in relation to information to accompany preliminary announcement of interim results. By Order of the Board Horizon Construction Development Limited KONG Fanxing Chairman Hong Kong, 4 August 2026 As at the date of this announcement, the executive directors of the Company are Mr. ZHAN Jing (Chief Executive Officer) and Mr. TANG Li, the non-executive directors of the Company are Mr. KONG Fanxing (Chairman), Mr. XU Huibin, Mr. HE Ziming, Mr. YUAN Shaozhen and Ms. GUO Lina, and the independent non-executive directors of the Company are Mr. LIU Jialin, Mr. XU Min, Ms. JIN Jinping and Mr. SUM Siu Kei.
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Contents Horizon Construction Development Limited · 2026 Interim Report Other Information ------------------------------------------------------------------------------------------------------ 57 Corporate Governance ----------------------------------------------------------------------------------------------- 55 Disclosure of Interests ------------------------------------------------------------------------------------------------ 50 Management Discussion and Analysis ----------------------------------------------------------------------- 12 Business Overview ------------------------------------------------------------------------------------------------------ 08 Company Profile --------------------------------------------------------------------------------------------------------- 06 Corporate Information- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 04
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Be global for shared prosperity Notes to Interim Condensed Consolidated Financial Information ----------------------------- 67 Interim Condensed Consolidated Statement of Cash Flows- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 65 Interim Condensed Consolidated Statement of Changes in Equity --------------------------- 63 Interim Condensed Consolidated Statement of Financial Position ---------------------------- 61 Interim Condensed Consolidated Statement of Comprehensive Income ------------------ 60 Interim Condensed Consolidated Statement of Profit or Loss ------------------------------------ 59 Independent Review Report -------------------------------------------------------------------------------------- 58
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Horizon Construction Development Limited · 2026 Interim Report CORPORATE INFORMATION BOARD Chairman and Non-executive Director Mr. KONG Fanxing (͛ ) Executive Directors Mr. ZHAN Jing ( ༗᎑͛ ) (Chief Executive Officer) Mr. TANG Li (ͭ͛ ) (Co-Chief Financial Officer) Non-executive Directors Mr. XU Huibin (ึⅳ͛ ) Mr. HE Ziming (͛ ) Mr. YUAN Shaozhen ( ˇቤ͛ ) Ms. GUO Lina (ɾɻ ) Independent Non-executive Directors Mr. LIU Jialin (͛ ) (Lead Independent Non-executive Director) Mr. XU Min Ms. JIN Jinping (ᎀറɾɻ ) Mr. SUM Siu Kei ( ҊΊਿ͛ ) COMPOSITION OF COMMITTEES Audit Committee Mr. XU Min (Chairman) Ms. JIN Jinping (ᎀറɾɻ ) Mr. SUM Siu Kei ( ҊΊਿ͛ ) Nomination Committee Ms. JIN Jinping (ᎀറɾɻ ) (Chairwoman) Mr. LIU Jialin (͛ ) Mr. XU Huibin (ึⅳ͛ ) Remuneration Committee Ms. JIN Jinping (ᎀറɾɻ ) (Chairwoman) Mr. LIU Jialin (͛ ) Ms. GUO Lina (ɾɻ ) Environmental, Social and Governance Committee Mr. SUM Siu Kei ( ҊΊਿ͛ ) (Chairman) Mr. HE Ziming (͛ ) Mr. XU Min COMPANY SECRETARY Ms. LI Yee Ching ( ҽရᆋɾɻ ) AUTHORIZED REPRESENTATIVES Mr. ZHAN Jing ( ༗᎑͛ ) Ms. LI Yee Ching ( ҽရᆋɾɻ ) REGISTERED OFFICE P.O. Box 31119 Grand Pavilion Hibiscus Way 802 West Bay Road Grand Cayman KY1-1205 Cayman Islands
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Be global for shared prosperity CORPORATE INFORMATION HEADQUARTERS No. 5, 6-610, Building 2 Minghai Center, 200 Xichang Road Pilot Free Trade Zone (Dongjiang Bonded Port Zone) Tianjin PRC PRINCIPAL PLACE OF BUSINESS IN HONG KONG Room 1901, 19/F, Lee Garden One 33 Hysan Avenue Causeway Bay Hong Kong SHARE REGISTRAR AND TRANSFER OFFICE Computershare Hong Kong Investor Services Limited Shops 1712-1716 17/F, Hopewell Centre 183 Queen ’s Road East Wanchai Hong Kong PRINCIPAL BANKS China Construction Bank Corporation Bank of Communications Co., Ltd. Bank of China Limited AUDITOR Ernst & Young (Public Interest Entity Auditor registered in accordance with the Financial Reporting Council Ordinance) LEGAL ADVISER Baker & McKenzie COMPANY WEBSITE www.hongxinjianfa.com STOCK CODE The Company ’s shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited Stock code: 9930
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Horizon Construction Development Limited · 2026 Interim Report COMPANY PROFILE Horizon Construction Development Limited (the “Company ” or “Horizon Construction Development ”) and its subsidiaries (collectively the “Group ”) are leading equipment operation service providers in China. Being a leading global rental company, the Group is committed to providing one-stop comprehensive solutions of “product + service ” for domestic and overseas clients in the construction and industrial sectors. Since its establishment in 2011, the Group has built up comprehensive and diversified equipment offerings and strong service capacities, and maintained industry-leading positions in numerous product lines, providing clients with comprehensive and multi-dimensional services covering the full cycle of projects. Leveraging the synergies among its various product lines and diversified service categories, as well as the ever-improving independent R&D innovation and digital operational capabilities, the Group has fostered a diverse, blue chip, loyal and high-quality customer base. To date, the number of service outlets of the Group ranks first among equipment operation service providers in China. The Group has deployed outlets in several overseas markets, thus continuously improving its global service capabilities. The Company ’s shares have been officially listed on the Main Board of The Stock Exchange of Hong Kong Limited (the “Stock Exchange ” or the “Hong Kong Stock Exchange ”) since 25 May 2023 (the “Listing Date ”). The shares of Far East Horizon Limited ( “Far East Horizon ”), the immediate holding company of the Company and a company incorporated in Hong Kong, have been listed on the Main Board of the Stock Exchange (stock code: 3360).
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Be global for shared prosperity INTERNATIONAL BUSINESS NETWORK *The presentation of the map is for artistic purposes only, the actual geographic information published in accordance with the laws shall prevail.
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INTERIM REPORT08 Horizon Construction Development Limited · 2026 Interim Report BUSINESS OVERVIEW For the six months ended 30 June For the year ended 31 December 2026 2025 2025 2024 2023 2022 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Operating results Total revenue 4,024,060 4,350,062 9,359,192 11,581,062 9,610,581 7,877,646 Operating lease services 2,636,011 2,265,244 5,191,671 4,620,986 5,139,275 5,189,949 Engineering and technical services 769,486 1,138,882 2,193,527 3,751,364 2,964,591 2,136,630 Asset management and other services (formerly “platform and other services ”) 618,563 945,936 1,973,994 3,208,712 1,506,715 551,067 Cost of sales (2,903,598) (3,409,395) (6,892,756) (7,806,466) (5,849,180) (4,744,640) Operating lease services (1,781,125) (1,644,048) (3,524,547) (2,858,228) (2,848,976) (2,870,719) Engineering and technical services (624,544) (967,475) (1,835,700) (2,761,118) (2,098,931) (1,496,266) Asset management and other services (formerly “platform and other services ”) (497,929) (797,872) (1,532,509) (2,187,120) (901,273) (377,655) Gross profit and gross profit margin 1,120,462 940,667 2,466,436 3,774,596 3,761,401 3,133,006 Operating lease services 854,886 621,196 1,667,124 1,762,758 2,290,299 2,319,230 Gross profit margin 32.4% 27.4% 32.1% 38.1% 44.6% 44.7% Engineering and technical services 144,942 171,407 357,827 990,246 865,660 640,364 Gross profit margin 18.8% 15.1% 16.3% 26.4% 29.2% 30.0% Asset management and other services (formerly “platform and other services ”) 120,634 148,064 441,485 1,021,592 605,442 173,412 Gross profit margin 19.5% 15.7% 22.4% 31.8% 40.2% 31.5% Profit before tax 53,081 50,276 208,866 1,200,159 1,226,523 893,804 Profit for the period/year attributable to holders of ordinary shares of the Company 36,602 35,490 146,976 896,322 962,407 664,335 Basic earnings per share (RMB) 0.012 0.011 0.047 0.282 0.316 0.235 Diluted earnings per share (RMB) 0.012 0.011 0.047 0.282 0.316 0.235 Profitability Indicators Return on average equity (1) 0.7% 0.6% 1.3% 8.1% 11.0% 10.5% Return on average total assets (2) 0.2% 0.2% 0.4% 2.6% 3.1% 2.3% Gross profit margin 27.8% 21.6% 26.4% 32.6% 39.1% 39.8% EBITDA margin (a non-HKFRS measure) (3) 47.3% 45.3% 44.0% 40.0% 46.6% 51.8%
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09INTERIM REPORT Be global for shared prosperity BUSINESS OVERVIEW 30 June 2026 31 December 2025 31 December 2024 31 December 2023 31 December 2022 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Assets and liabilities Total assets 35,802,004 36,368,347 36,434,181 31,236,775 30,288,394 Total liabilities 24,742,222 25,043,502 24,975,831 20,459,108 23,616,202 Interest-bearing bank and other borrowings 19,967,472 20,328,205 20,902,895 17,339,232 21,212,114 Gearing ratio (4) 69.1% 68.9% 68.6% 65.5% 78.0% Total equity 11,059,782 11,324,845 11,458,350 10,777,667 6,672,192 Equity attributable to holders of ordinary shares of the Company 11,059,782 11,324,845 11,458,350 10,777,667 6,672,192 Net assets per share (RMB) (5) 3.53 3.61 3.66 3.37 2.36
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Horizon Construction Development Limited · 2026 Interim Report BUSINESS OVERVIEW Notes: (1) Return on average equity = profit for the period or year attributable to holders of ordinary shares of the Company/average balance of total equity at the beginning and the end of the period or year attributable to holders of ordinary shares of the Company, presented on an annualized basis. (2) Return on average total assets = profit for the period or year attributable to holders of ordinary shares of the Company/ average balance of total assets at the beginning and the end of the period or year, presented on an annualized basis. (3) EBITDA margin (a non-HKFRS measure) = EBITDA (a non-HKFRS measure)/total revenue for the period or year. EBITDA (a non-HKFRS measure) = profit for the period or year – interest income from the bank + income tax expenses + finance costs + depreciation and amortization. (4) Gearing ratio = total liabilities at the end of the period or year/total assets at the end of the period or year. (5) Net assets per share = total equity at the end of the period or year attributable to holders of ordinary shares of the Company/number of ordinary shares outstanding at the end of the period or year. INTERIM REPORT10
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Be global for shared prosperity 11INTERIM REPORT
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INTERIM REPORT12 MANAGEMENT DISCUSSION AND ANALYSIS 1. INDUSTRY ENVIRONMENT AND COMPANY ’S SOLUTIONS 1.1 National and Regional Environment Mainland China: In the first half of 2026, China ’s macroeconomic performance remained stable amid a mix of internal and external factors. High-quality development continued to progress towards greater innovation and excellence, and the 15th Five-Year Plan got off to a solid start. Supply-side growth remained robust, with gross domestic product (GDP) reaching RMB69.57 trillion in the first half of the year, representing a year-on-year increase of 4.7% at constant prices, laying a solid foundation for the economic recovery throughout the year. The price system exhibited moderate recovery, with price indicators on both the supply and demand sides moving higher in parallel. In the first half of the year, the Consumer Price Index (CPI) rose by an average of 1.0% year on year, reflecting a steady pick-up in end-consumer demand; in June, the Producer Price Index (PPI) increased by 4.1% year on year, representing a monthly gain expansion since its March turnaround, with an average increase of 1.5% over the first half of the year. The supply-demand dynamics in upstream industries continued to improve. Price signals flowed through the production chain to midstream and downstream segments, driving a marginal profit recovery for industrial enterprises, with an earnings improvement trend gradually taking hold. The manufacturing sector continued to expand in both volume and quality, though fixed-asset investment sentiment weakened. In the first half of the year, the value-added output of industrial enterprises above designated size increased by 5.4% year on year, while high-tech manufacturing output grew by 13.3% year on year, highlighting the strong support from innovation-driven growth. Manufacturing fixed-asset investment declined by 1.2% year on year in aggregate, with the decline widening as compared to the previous period. Midstream and downstream manufacturers were constrained by rising upstream costs and other factors, leading to downward adjustments in overall capital expenditure, although investment in high-tech manufacturing sector maintained its growth trajectory, rising by 4.6% year on year. The construction sector presented a mixed operational pattern in general, characterised by infrastructure holding up, property staying weak, orders declining and structural divergence. Fixed-asset investment growth slowed down after a strong start, weighed down by a widening contraction in property investment and a marginal deceleration in infrastructure investment. From January to June 2026, national fixed-asset investment (excluding rural households) amounted to RMB22.64 trillion, representing a year-on-year decrease of 5.7%. Excluding real estate development investment, project investment dropped by 2.7% year on year. The business activity index for the construction industry remained below the 50-point threshold, signalling continued contraction in industry sentiment. Horizon Construction Development Limited · 2026 Interim Report
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13INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS Infrastructure investment decreased by 2.4% year on year during the first half of 2026, with its growth rate continuing to slow down from the beginning of the year and eventually turning negative. Investment in information transmission and air transport increased by 25.6% and 11.0% year on year, respectively. The construction of the “Six Networks ʬੵၣ” new infrastructure project progressed steadily, alongside the ongoing ramp-up of “Two Major ” projects, supporting steady progress in infrastructure investment across key sectors. Sentiment in the construction machinery sector improved, marking a divergence from the fundamentals of the construction industry. Domestic excavator sales reached 79,000 units in the first half of the year, representing a year-on-year increase of 20.4%. The sector remained strong on both supply and demand, driven primarily by the implementation of equipment renewal policies and the steady rise in new-energy machine penetration. Overseas regions: The following elaborates on the operating environment across the key countries and regions in which the Group operates. Malaysia recorded a year-on-year GDP growth of 5.6% in the first half of 2026, representing an increase of 4.5% as compared to the same period last year, underpinned by the manufacturing, services and construction sectors which served as key growth drivers. In particular, driven by the construction of non-residential building projects such as data centres, the construction sector recorded a moderate growth of 6.6% in the second quarter. Data centres, industrial parks, power facilities and industrial infrastructure have gradually emerged as the primary drivers of incremental infrastructure expansion in the local market. Indonesia recorded a year-on-year GDP growth of 5.61% in the first quarter of 2026, marking a significant acceleration from the 4.87% growth rate recorded in the same period last year. The local construction sector continued to expand, recording a year-on-year growth of 5.49% in the first quarter. Development of the new capital, Nusantara (IKN), continued to advance, providing sustained momentum for complementary infrastructure works in the Kalimantan region. A number of data centres and battery materials industrial parks transitioned from planning to execution, with infrastructure investment, energy projects and industrial upgrading increasingly emerged as the key engines of local growth. Vietnam recorded a year-on-year GDP growth of 8.18% in the first half of 2026, which accelerated significantly from the 7.63% growth rate recorded in the same period last year, outpacing all other major economies in Southeast Asia. In particular, the value-added output of the industrial and construction sectors increased by 9.81% year on year in the first half of the year, rendering their position as the core growth engine of domestic economy. As of the end of June 2026, Vietnam attracted a total of US$34.65 billion in foreign direct investment (including newly approved projects, capital increases and equity acquisitions), representing a year-on-year increase of 61.0%. Supported by the implementation of the 2030 industrial zone development plan, alongside the comprehensive advancement of cross-border standard-gauge railway projects and large-scale data centre infrastructure, Vietnam ’s construction sector is well-positioned for sustained growth. Thailand recorded a year-on-year GDP growth of 2.8% in the first quarter of 2026, representing a 0.3 percentage-point improvement quarter-on-quarter, signalling a sustained economic recovery trajectory. The manufacturing, hospitality and transportation sectors served as the primary pillars of economic growth. The construction sector grew by 6.2% year on year in the first quarter. The Thailand Board of Investment (BOI) has approved several data centre investment projects during the Be global for shared prosperity
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INTERIM REPORT14 MANAGEMENT DISCUSSION AND ANALYSIS year, with total investment exceeding USD31 billion. The local construction sector accelerated its structural transformation, shifting its business focus from traditional residential projects to emerging areas such as computing hubs, transport infrastructure and smart cities. Saudi Arabia recorded a year-on-year real GDP growth of 3.0% in the first quarter of 2026, moderating from the previous quarter against a backdrop of regional geopolitical disruptions, with both non-oil and oil-related economic activity exhibiting a year-on-year growth of 2.9%. Real GDP in the construction sector increased by 2.3% year on year. Despite a moderation in new contract signings during the period amid regional macroeconomic headwinds, the sector maintained positive growth overall, supported by the continued implementation of major “Vision 2030 ” projects and infrastructure developments, together with the transition to the third phase of the vision plan in 2026, the steady expansion of the non-oil sector and the shift toward a more diversified economic structure. UAE is expected to deliver a 3.1% real GDP growth in 2026 according to the International Monetary Fund (IMF) forecast. Supported by the implementation of Abu Dhabi ’s AED240 billion (equivalent to approximately USD65.4 billion) long-term investment plan, the launch of cross-border mega-infrastructure projects including the Oman power interconnection project early this year, as well as the rollout of Dubai ’s AED18 billion major development plan, the UAE continued to ramp up investment in major projects such as data centres, transport infrastructure and urban development. The resilience of its organic growth momentum remained evident, serving as a buffer against the impact of geopolitical disruptions in the Strait of Hormuz. Turkey recorded a year-on-year real GDP growth of 2.5% in the first quarter of 2026, while the construction sector recorded a year-on-year increase of 3.2%, with both growth rates moderating from the previous quarter. Geopolitical tensions in Iran lifted energy prices, exacerbating domestic inflationary pressures. Accordingly, the central bank has raised its year-end inflation forecast from 18% to 26%. The World Bank forecasts a deceleration in Turkey ’s economic expansion in 2026, with annual growth projected at 2.8%. Tanzania is forecasted by IMF to record a GDP growth of 5.9% in 2026. As a core economy in East Africa, Tanzania experienced strong demand for infrastructure investment, with continued increases in capital input across transportation, energy, water conservancy, and other sectors. At the same time, China-Tanzania infrastructure cooperation continued to deepen, with domestic enterprises deeply involved in landmark local projects, offering ample regional market opportunities. Morocco recorded a year-on-year GDP growth of 4.6% in the first quarter of 2026, and the OECD has raised its forecast for the country ’s annual GDP growth in 2026 to 5.0%. As a core gateway economy in Africa, the continued growth in incremental demand for the engineering machinery rental market is attributable to the country ’s robust investment activities in transport infrastructure, renewable energy and port logistics, as well as the accelerated rollout of supporting infrastructure projects for the 2030 World Cup. Kazakhstan recorded a year-on-year GDP growth of 4.1% in the first half of 2026, with strong growth momentum across sectors. The construction, transport services and manufacturing industries grew by 15.2%, 7.1% and 9.8% year on year, respectively, making these three sectors becoming key pillars of the economy. IMF forecasts the country ’s economic growth in 2026 at 4.6%. As a key node country in the Belt and Road Initiative, China and Kazakhstan maintained close cooperation in transport corridors, energy infrastructure and industrial capacity, providing high-quality strategic space for overseas business expansion. Horizon Construction Development Limited · 2026 Interim Report
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15INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 1.2 Company Business Environment The Group is primarily engaged in machinery rental and supporting services, with its core business covering the integrated operations services of engineering equipment such as aerial work platform equipment, neo-excavation support system, neo-formwork system and road equipment. Meanwhile, the Company continues to expand its rental product portfolio inside and outside of China, and is strategically developing emerging rental businesses such as special aerial work equipment (truck-mounted aerial work platforms, glass attachment boom lifts, track-based aerial trucks, etc.), material handling equipment (forklifts, telescopic handlers, etc.), lifting equipment (truck-mounted cranes, spider cranes, etc.) and mining equipment. In the domestic market, the continuation of population aging, the steady upward shift in the labor cost benchmark, and increasingly stringent regulatory policies on production safety, green development and carbon reduction are collectively accelerating the substitution of labor with equipment in engineering construction, thereby driving steady expansion in the demand for efficient, safe and environmentally friendly construction machinery. Although investment in traditional domestic residential construction has been declining, the overall base of fixed-asset construction remains substantial, and the total volume of engineering projects provides solid support. Benefiting from the 8.9% year-on-year growth in infrastructure investment during the first quarter, rigid rental demand persists across construction scenarios which are highly compatible with the Company ’s equipment, including infrastructure projects, green industrial plants, warehousing and logistics facilities, and data centres. Moreover, given the persistent profitability headwinds and the escalating imperative to curb costs across the construction industry, the equipment rental model has emerged as a preferred procurement approach for construction enterprises, underpinned by its core advantages of asset-light operations, cost reduction and efficiency improvement, which continues to boost the penetration rate of the domestic construction machinery rental sector. According to the IPAF Rental Market Report 2026, the unit volume of the Chinese aerial work platform rental market amounted to 710,000 units as of the end of 2025, representing a year-on-year increase of 6.1%. The growth rate of the unit volume significantly slowed down but remained in positive territory. The application scope of aerial work platforms continued to expand, covering various scenarios such as construction work, municipal engineering, operation and maintenance, landscaping, advertisement installation, and sports and entertainment. Looking forward, with the increasing acknowledgment of the equipment ’s economical and operational efficiency benefits by various industries, the medium– to long-term demand in the sector is expected to continue unfolding. With steel-structure support as its core, the neo-excavation support system has been widely deployed in scenarios such as water conservancy hubs, urban underground pipeline networks, deep building foundation pits and transportation infrastructure. Fuelled by policy support and investment inflows into domestic water conservancy projects, underground pipeline networks, and flood control and disaster mitigation infrastructure, the neo-excavation support system is progressively displacing conventional concrete support systems with its differentiated advantages of green and low-carbon characteristics, high installation efficiency and controllable overall costs, pushing industry penetration steadily higher. Ringlock scaffold, as a core category within the neo-formwork system, offers advantages including high safety margins, low labour costs, convenient assembly and disassembly, material savings and excellent surface finish, making it widely adaptable to various construction scenarios such as infrastructure projects, industrial facilities and building construction. In 2025, the volume of ringlock scaffold in China was approximately 28.5 million tons, sustaining an overall growth trend. The industry indicators from the China Construction Materials Rental Contractor Association suggest that the domestic ringlock scaffold sector is still navigating a contractionary environment, where subdued demand and downward pricing pressure Be global for shared prosperity
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INTERIM REPORT16 MANAGEMENT DISCUSSION AND ANALYSIS remain unresolved industry pain points. On the overseas front, leveraging the product ’s core strengths in load-bearing capacity, safety and stability, and construction efficiency, demand for ringlock scaffolds in overseas markets continues to expand. In overseas markets, driven by the rapid industrialization in Southeast Asia, the surging wave of data centre construction, the rolling out of trillion-scale infrastructure projects under the vision initiatives in Middle East, and persistently robust infrastructure and industrial investment in countries along the Belt and Road and key African regions, overseas markets have emerged as a strategic frontier for Chinese construction machinery enterprises to capture incremental growth and refine global positioning. Meanwhile, the overseas demand for construction equipment is undergoing a structural upgrade. Beyond conventional earthmoving equipment, new types of safe, green and efficient equipment, such as aerial work platform, neo-excavation support system and neo-formwork system, are seeing rising penetration rates, providing ample headroom for the Company to optimize its global asset allocation and expand its international business presence. 1.3 Company ’s Strategies In the first half of 2026, facing the dual challenges of a complex and volatile international landscape and continuous pressure on the domestic construction industry, the Group adhered to a market-oriented operation approach, consolidated its operational foundation through lean management, and adopted deep engagement with high-value customers as its core business strategy. Embracing the development philosophy of “Be global for shared prosperity ”, the Group steadily implemented its “Three + Three + Three ( ɧ+ɧ+ɧ)” strategic framework and continued its solid progress towards the vision of becoming a world-class enterprise. Domestically, the Group continuously optimized its operational structure and drove efficiency enhancement through lean operations. On the customer front, the Group implemented refined, tiered and classified management and control of customers, adopted innovative marketing strategies, deployed online customer acquisition and operations for micro, small and medium-sized customers, while advancing ecosystem-based marketing collaboration for key accounts. On the product front, with a focus on the current situation of its customers in the traditional construction sector, the Group explored new product offerings, new frontiers and customized solutions to hedge against the cyclical fluctuations of traditional products. The Group continued to advance its “Three + Three + Three ” overseas development strategy. Its overseas business has progressively undergone iterative upgrades in its business model towards “scale expansion ” and “operational efficiency improvement ”. Key initiatives include: deepening engagement with regional value customers, exploring cooperation opportunities in local market, innovating customer service models, and continuously increasing customer wallet share; optimizing asset allocation on a global basis, with an emphasis on increasing asset investment in high-potential markets such as the Middle East and Southeast Asia, while enriching asset categories in alignment with the developmental characteristics of each regional markets, and providing diversified equipment rental services to its customers; and iterating its global organizational management system to empower the high-quality development of overseas business through standardized service and control systems. Meanwhile, the Company has established its network footprint and launched operational pilots in Kazakhstan, Morocco and Tanzania, and actively and continuously exploring further opportunities in emerging markets. As of 30 June 2026, the Group established 544 service outlets worldwide. Among them, a total of 467 service outlets were located in Mainland China and Hong Kong, China, covering 229 cities, and 77 service outlets were located overseas, covering 10 overseas countries. Horizon Construction Development Limited · 2026 Interim Report
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17INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 2. INCOME STATEMENT ANALYSIS 2.1 Income Statement Analysis (Overview) In the first half of 2026, the Group faced a complex and volatile external environment, with decreased revenue as compared to the same period of last year. Profit before tax was RMB53,081,000, representing an increase of 5.6% from RMB50,276,000 for the same period of last year. The Group ’s EBITDA (a non-HKFRS measure) was RMB1,903,209,000, representing a decrease of 3.3% from RMB1,968,638,000 for the same period of last year. The following table sets forth the composition and changes in the Group ’s profit for the period: For the six months ended 30 June 2026 2025 RMB’000 RMB’000 Change % Revenue 4,024,060 4,350,062 -7.5% Cost of sales (2,903,598) (3,409,395) -14.8% Gross profit 1,120,462 940,667 19.1% Other income and gains 97,469 104,327 -6.6% Selling and administrative expenses (1) (766,395) (758,331) 1.1% Provision for assets (2) (63,842) 182,796 N/A Other expenses (15,408) (18,113) -14.9% Finance costs (319,205) (401,070) -20.4% Profit before tax 53,081 50,276 5.6% Income tax expenses (16,479) (14,786) 11.5% Profit for the period 36,602 35,490 3.1% Notes: (1) Selling and administrative expenses exclude impairment of repossessed assets under administrative expenses in the interim condensed consolidated statement of profit or loss. (2) Provision for assets includes expected credit losses ( “ECL”) on financial and contract assets, net and impairment of repossessed assets under administrative expenses in the interim condensed consolidated statement of profit or loss. Be global for shared prosperity
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INTERIM REPORT18 MANAGEMENT DISCUSSION AND ANALYSIS Non-HKFRS Measures To supplement our consolidated results which are prepared and presented in accordance with HKFRS, the Group uses EBITDA, which are not required by, or presented in accordance with HKFRS. The Group believes that such non-HKFRS measures facilitate comparisons of operating performance by eliminating the potential impact of these non-core items. The use of such non-HKFRS measures has limitations as an analytical tool, and you should not consider them in isolation from, as a substitute for, analysis of, or superior to, our results of operations or financial conditions as reported under HKFRS. In addition, such non-HKFRS financial measures may be defined differently by other companies, and may not be comparable to other similarly titled measures used by other companies. The table below sets forth the reconciliation of our non-HKFRS measures presented to the most directly comparable HKFRS measures: For the six months ended 30 June 2026 2025 RMB’000 RMB’000 Change % Profit for the period 36,602 35,490 3.1% Less: Bank interest income 1,336 3,923 -65.9% Add: Income tax expenses 16,479 14,786 11.5% Add: Finance costs 319,205 401,070 -20.4% Add: Depreciation and Amortization (1) 1,532,259 1,521,215 0.7% EBITDA (a non-HKFRS measure) 1,903,209 1,968,638 -3.3% Note: (1) Depreciation and amortization include depreciation of property, plant and equipment, depreciation of right-of-use assets and amortization of other intangible assets. 2.2 Revenue In the first half of 2026, the Group recorded revenue of RMB4,024,060,000, representing a decrease of 7.5% as compared with RMB4,350,062,000 for the corresponding period last year. The decline in the Group ’s revenue was mainly based on the continued decline in equipment rental rates in the domestic market environment and our proactive focus on high-margin engineering business in the domestic market. In the first half of 2026, the Group actively deployed overseas outlets and business teams, and achieved overseas revenue of approximately RMB924,005,000. Attributable to our comprehensive and multi-dimensional service model covering the full cycle of projects, the Group has established a diversified, stable and high-quality customer base with years of deep cultivation in the industry. The number of the Group ’s customers (on a standalone basis) increased from approximately 325,000 in 2024 (including approximately 1,700 overseas customers) to approximately 401,000 in 2025 (including approximately 6,400 overseas customers), and further increased to approximately 431,000 in the first half of 2026 (including approximately 7,700 overseas customers), covering a wide range of industries such as municipal construction, housing construction, transportation construction, shipbuilding and offshore engineering, industrial manufacturing, green energy, warehousing and logistics, culture and art, and business and entertainment. Horizon Construction Development Limited · 2026 Interim Report
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19INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS The following table sets forth key operational information related to the Group ’s revenue: For the six months ended 30 June 2026 2025 Aerial work platform Equipment volume (in thousand units) (1) 202.2 202.6 Utilization rate (2) 65.8% 64.0% Neo-excavation support system Equipment volume (in thousand tons) 1,207.5 1,371.1 Utilization rate (2) 58.8% 70.4% Neo-formwork system Equipment volume (in thousand tons) 595.8 638.3 Utilization rate (2) 70.8% 66.3% Notes: (1) As at 30 June 2026, among the 202,200 aerial work platforms operated and managed by the Group, 44,380 aerial work platforms were entrusted to the Group by equipment owners outside the Group to operate and manage through the asset management service model. The asset management service model primarily refers to the model in which the Group leases from other equipment suppliers and enters into sub-leases with customers. (2) Calculated as the average of total value of assets the Group leased out during the period divided by the average of total value of equipment the Group owned. “Average of total value of equipment ” is the total asset value of all equipment, averaged between the beginning and the end of the period. In the first half of 2026, according to the analysis on main product lines of the Group, the average utilization rate of neo-excavation support system was lower than that of the corresponding period last year, attributable to our proactive focus on high-margin engineering business in domestic market. The average utilization rate of aerial work platform and neo-formwork system higher than that of the corresponding period last year, primarily benefitted from the gradual maturation of the overseas formwork business. Be global for shared prosperity
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INTERIM REPORT20 MANAGEMENT DISCUSSION AND ANALYSIS 2.2.1 Revenue analysis by business segment The Group ’s revenue is derived from (i) operating leasing services, which primarily include aerial work platform, neo-excavation support system, neo-formwork system and other equipment; (ii) engineering and technical services, which represent the tailor-made one-stop solutions for different business or operation scenarios; and (iii) asset management and other services, which primarily consists of asset management services, and the sales of equipment, materials and spare parts under trading business. The following table sets forth the composition and changes in the Group ’s revenue by business segment: For the six months ended 30 June 2026 2025 RMB’000 Proportion % RMB’000 Proportion % Change % Operating lease services 2,636,011 65.5% 2,265,244 52.1% 16.4% Engineering and technical services 769,486 19.1% 1,138,882 26.2% -32.4% Asset management and other services 618,563 15.4% 945,936 21.7% -34.6% Total 4,024,060 100.0% 4,350,062 100.0% -7.5% 2.2.1.1 Operating lease services The Group ’s portfolio of operating lease services includes various types of leased equipment and materials, and operating lease services are provided on a daily, weekly, monthly, annual or project-by-project basis according to customers ’ needs. In the first half of 2026, the Group ’s revenue from operating lease services amounted to RMB2,636,011,000, representing an increase of 16.4% as compared with RMB2,265,244,000 for the corresponding period last year, which was mainly driven by the rapid increase in operating lease services revenue from overseas markets. The Group ’s portfolio of operating lease services is currently anchored by three core products (aerial work platform, neo-excavation support system and neo-formwork system), which enjoy broad customer demand across the early, middle and late phases of constructing infrastructure, manufacturing factories, logistics parks, commercial buildings and data centre. For instance, in the construction of manufacturing factories, the neo-excavation support system can be deployed for early-stage construction of foundation pits and underground works for ancillary pipeline laying, whereas the neo-formwork system can be used during the main framework assembly stage. The aerial work platform can be applied for the installation of steel structures as well as the installation of electromechanical equipment, fire protection, lighting and curtain walls during the late stage of construction. In addition to these three core product lines, the Group also provides, in overseas markets, rental services for earthmoving machinery, lifting machinery, road engineering machinery and mining machinery, tailored to the needs of customers in various countries. The contribution of these diversified products to operating lease income has been increasing progressively alongside our overseas expansion. Meanwhile, the Group also initiated early-stage trials for innovative products in non-construction segments, including initial explorations into leasing models for commercial cleaning robots and autonomous logistics vehicles. However, these products currently represent extremely low proportion and have a very limited impact on the operating lease income. Horizon Construction Development Limited · 2026 Interim Report
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21INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS According to the statistics of the confirmed turnover derived from the equipment operated and managed by the Group, during the first half of 2026, approximately 72.2% were served in the industrial projects (including industrial plants and logistics warehousing), approximately 18.7% in infrastructure and municipal projects, approximately 2.6% in commercial real estate projects (including shopping malls, hotels and offices), approximately 1.7% in residential projects, and approximately 4.8% in daily operations and other projects. Note: The statistics above reflect Mainland China only, excluding overseas scenarios. 2.2.1.2 Engineering and technical services In the first half of 2026, the Group ’s revenue from engineering and technical services amounted to RMB769,486,000, representing a decrease of 32.4% as compared with RMB1,138,882,000 for the corresponding period last year, which was mainly due to the overall focus strategy adopted for our domestic materials business and our proactive withdrawal from certain engineering business with lower added value, leading to a year-on-year decrease in the Group ’s revenue from engineering and technical services during the period. 2.2.1.3 Asset management and other services In the first half of 2026, the Group ’s revenue from asset management and other services amounted to RMB618,563,000, representing a decrease of 34.6% as compared to RMB945,936,000 for the corresponding period last year, mainly due to the Group ’s reduction in equipment asset management service entrustments received from leasing peers. Asset management service revenue represents the revenue generated by the Group through the asset management service model, under which the Group first enters into lease agreements with financial leasing companies or other equipment leasing companies for the right to use the equipment. During the agreed period, the Group, as the lessee, takes full responsibility for the leasing, dispatch, maintenance and customer service of the equipment. The Group then subleases the entrusted equipment to end customers. Leveraging its nationwide operational network, digital management systems and extensive equipment operation experience, the Group possessed strong asset management capabilities and further consolidated its operational advantages through the entrusted management model, on top of its own resources. As at 30 June 2026, among the 202,200 aerial work platforms operated and managed by the Group, 44,380 aerial work platforms were entrusted to the Group by other equipment owners outside the Group to operate and manage through the asset management service model, which was decreased compared with the same period last year. Revenue from other services mainly represents trading revenue generated from sales of equipment, materials and spare parts by the Group. In the first half of 2026, the Group sold 317 units of equipment and 42,040 tons of materials, thus achieving continuous asset structure optimization. Be global for shared prosperity
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INTERIM REPORT22 MANAGEMENT DISCUSSION AND ANALYSIS The following table sets forth the composition and changes in the Group ’s asset management and other services: For the six months ended 30 June 2026 2025 RMB’000 Proportion % RMB’000 Proportion % Change % Asset management services 325,643 52.6% 659,715 69.7% -50.6% Trade and others 292,920 47.4% 286,221 30.3% 2.3% Total 618,563 100.0% 945,936 100.0% -34.6% 2.2.2 Revenue analysis by region The following table sets forth the composition and changes in the Group ’s revenue by regions: For the six months ended 30 June 2026 2025 RMB’000 Proportion % RMB’000 Proportion % Change % Domestic regions (including Hong Kong and Macau) 3,100,055 77.0% 3,752,682 86.3% -17.4% Overseas regions 924,005 23.0% 597,380 13.7% 54.7% Total 4,024,060 100.0% 4,350,062 100.0% -7.5% As at 30 June 2026, the number of equipment under management in domestic regions (including Hong Kong and Macau) was 193,200 sets, while the number of equipment under management in overseas regions was 19,000 sets. In addition to aerial work equipment, equipment under the Company ’s management includes material handling equipment (forklifts, telescopic handlers, etc.), lifting equipment (truck-mounted cranes, spider cranes, etc.) and mining equipment (wide-body dump trucks, mining excavators, etc.). As at 30 June 2026, there were 1,169,000 tons of support materials and 405,000 tons of formwork assets under management in domestic regions (including Hong Kong and Macau); and there were 39,000 tons of support materials and 191,000 tons of formwork assets under management in overseas regions. Horizon Construction Development Limited · 2026 Interim Report
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23INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 2.3 Gross Profit and Gross Profit Margin In the first half of 2026, the Group recorded a gross profit of RMB1,120,462,000, representing an increase of 19.1% as compared with RMB940,667,000 for the corresponding period last year. The gross profit margin of the Group was 27.8%, representing an increase of 6.2% as compared with 21.6% for the corresponding period last year, mainly due to our proactive focus on high-margin engineering and technical services business in the domestic market, an increased revenue contribution from high-margin operating lease services business in the overseas market, and internal operational efficiency enhancements. 2.3.1 Gross profit by business segment The following table sets forth the Group ’s gross profit and gross profit margin by segment: For the six months ended 30 June 2026 2025 RMB’000 Gross profit margin % RMB’000 Gross profit margin % Change in gross profit % Operating lease services 854,886 32.4% 621,196 27.4% 37.6% Engineering and technical services 144,942 18.8% 171,407 15.1% -15.4% Asset management and other services 120,634 19.5% 148,064 15.7% -18.5% Total gross profit/gross profit margin 1,120,462 27.8% 940,667 21.6% 19.1% 2.3.1.1 Operating lease services In the first half of 2026, the gross profit of the Group ’s operating lease services amounted to RMB854,886,000, representing an increase of 37.6% as compared with RMB621,196,000 for the corresponding period last year. The gross profit margin of the Group ’s operating lease services was 32.4%, representing an increase of 5.0% as compared with 27.4% for the corresponding period last year, mainly due to an increased revenue contribution from high-margin business in the overseas market, as well as the implementation of lean management to reduce costs and enhance efficiency in response to price competition within the domestic market. 2.3.1.2 Engineering and technical services In the first half of 2026, the gross profit of the Group ’s engineering and technical services amounted to RMB144,942,000, representing a decrease of 15.4% as compared with RMB171,407,000 for the corresponding period last year. The gross profit margin of the Group ’s engineering and technical services was 18.8%, representing an increase of 3.7% as compared with 15.1% for the corresponding period last year, which was mainly due to the Group ’s proactive withdrawal from certain engineering segments with lower gross profit margins, coupled with its continuous commitment to engineering segments with higher economic added value, such as water-related cofferdams, steel trestle bridges and steel sheet pile shoring projects. Be global for shared prosperity
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INTERIM REPORT24 MANAGEMENT DISCUSSION AND ANALYSIS 2.3.1.3 Asset management and other services In the first half of 2026, the gross profit of the Group ’s asset management and other services amounted to RMB120,634,000, representing a decrease of 18.5% as compared to RMB148,064,000 for the corresponding period last year. The gross profit margin of the Group ’s asset management and other services was 19.5%, representing an increase of 3.8% as compared to 15.7% for the corresponding period last year, which can be further divided into: In the first half of 2026, the gross profit of the Group ’s asset management services amounted to RMB97,550,000, representing a decrease of 8.1% as compared to RMB106,162,000 for the corresponding period last year. The gross profit margin of the Group ’s asset management service was 30.0%, representing an increase of 13.9% as compared to 16.1% for the corresponding period last year, mainly due to the implementation of lean management to reduce costs and enhance efficiency in response to price competition within the domestic market. In the first half of 2026, the Group actively adjusted the structure of self-owned lease and service assets by disposal of certain equipment and materials assets that did not meet the efficiency requirements. The gross profit of the Group ’s sales of equipment, materials and spare parts amounted to RMB23,084,000, representing a decrease of 44.9% as compared to RMB41,902,000 for the corresponding period last year. The gross profit margin of the Group ’s sales of equipment, materials and spare parts amounted to 7.9%, representing a decrease of 6.7% as compared to 14.6% for the corresponding period last year, mainly due to the decline in steel prices. 2.3.2 Gross profit by region The following table sets forth the composition and changes in the Group ’s gross profit by regions: For the six months ended 30 June 2026 2025 RMB’000 Gross profit margin % RMB’000 Gross profit margin % Change in gross profit % Domestic regions (including Hong Kong and Macau) 721,154 23.3% 669,585 17.8% 7.7% Overseas regions 399,308 43.2% 271,082 45.4% 47.3% Total 1,120,462 27.8% 940,667 21.6% 19.1% Horizon Construction Development Limited · 2026 Interim Report
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25INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 2.4 Cost of Sales and Selling and Administrative Expenses In the first half of 2026, the Group ’s cost of sales amounted to RMB2,903,598,000, representing a decrease of 14.8% as compared with RMB3,409,395,000 for the corresponding period last year. The Group ’s selling and administrative expenses (excluding impairment of repossessed assets) amounted to RMB766,395,000, representing an increase of 1.1% as compared with RMB758,331,000 for the corresponding period last year. The total amount of the above costs and expenses was RMB3,669,993,000, representing a decrease of 11.9% as compared with RMB4,167,726,000 for the corresponding period last year, which was mainly due to a decrease in staff and labour subcontracting costs, trading and re-rent costs, maintenance and consumable materials costs, and logistics and lifting costs. The following table sets forth a breakdown of the Group ’s cost of sales and selling and administrative expenses (excluding impairment of repossessed assets) by nature: For the six months ended 30 June 2026 2025 RMB’000 % of revenue RMB’000 % of revenue Change in amount % Depreciation and amortization (1) 1,492,145 37.1% 1,486,981 34.2% 0.3% Depreciation and amortization – leasehold use rights (1) 40,111 1.0% 33,001 0.8% 21.5% Staff and labour subcontracting costs (2) 832,229 20.6% 944,183 21.7% -11.9% Trading and re-rent costs (3) 455,914 11.3% 658,887 15.1% -30.8% Maintenance and consumable materials costs (4) 183,972 4.6% 304,680 7.0% -39.6% Logistics and lifting costs (5) 260,211 6.5% 304,439 7.0% -14.5% Research and development expenses (6) 94,937 2.4% 106,442 2.4% -10.8% Transportation, travelling and information expenses (7) 91,177 2.3% 106,337 2.4% -14.3% Rental and property management services expenses (8) 62,980 1.6% 53,430 1.2% 17.9% Taxes and surcharges 49,369 1.2% 31,279 0.7% 57.8% Professional services fee (9) 29,347 0.7% 41,624 1.0% -29.5% Other expenses (10) 77,601 1.9% 96,443 2.2% -19.5% Total 3,669,993 91.2% 4,167,726 95.8% -11.9% Be global for shared prosperity
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INTERIM REPORT26 MANAGEMENT DISCUSSION AND ANALYSIS Notes: (1) Depreciation and amortization are depreciation of property, plant and equipment, depreciation of right-of-use assets and amortization of other intangible assets, but excluding depreciation and amortization included in research and development expenses. The actual economic life of assets used in operating leases and engineering and technical services in the industry is generally up to 15-20 years after regular maintenance and repair. On 12 March 2024, the Group announced that the expected useful life of the hot-dip galvanizing scaffolds in the neo-formwork system would be changed from 10 years to 20 years and the expected net residual value rate would be changed from 10% to 30%. In the first half of 2026, the Group ’s depreciation and amortization (including the depreciation of leasehold and leased equipment use rights) amounted to RMB1,532,256,000, representing an increase of 0.8% as compared with RMB1,519,982,000 for the corresponding period last year, which was mainly due to the increase in the size of the Group ’s self-owned equipment compared to the corresponding period last year. (2) The Group ’s staff and labour subcontracting costs mainly represent the remuneration expenses of the Group ’s employees and the labour subcontracting costs incurred in connection with the demand for temporary staff in engineering and technical service projects. In the first half of 2026, the Group ’s staff and labour subcontracting costs amounted to RMB832,229,000, representing a decrease of 11.9% as compared with the corresponding period last year, which was mainly due to the strategic focus of the material business on high-margin projects, which led to the downsizing of engineering service personnel. (3) Trading and re-rent costs mainly represent trading costs of sales of equipment, materials and spare parts and the Group ’s equipment leasing costs. In the first half of 2026, the Group ’s trading and re-rent costs amounted to RMB455,914,000, representing a decrease of 30.8% as compared with the corresponding period last year, of which re-rent costs amounted to RMB186,078,000, representing a decrease of 55.1% as compared with the corresponding period last year. Trading costs amounted to RMB269,836,000, representing an increase of 10.4% as compared with the corresponding period last year, which was mainly due to the Group ’s continuous optimisation of its asset structure. (4) The maintenance and consumable materials costs mainly represent the cost of spare parts for the Group ’s maintenance and repair of equipment and materials (including the equipment leased under the asset management service model), and the cost of materials consumed by the Group ’s engineering and technical service projects. In the first half of 2026, the Group ’s maintenance and consumable materials costs amounted to RMB183,972,000, representing a decrease of 39.6% as compared with the corresponding period last year, which was mainly due to the Group ’s continuous optimisation of standardised and modularized management of its maintenance system, reduced maintenance costs through accelerated development of alternative maintenance parts as well as the repair and reuse of used parts, and a reduction in materials consumed resulting from a scale-down in business operations due to proactive focus on high- margin projects in engineering and technical service. (5) The logistics and lifting costs mainly represent the logistics costs of equipment for transfers between different projects under the Group ’s operating lease services and asset management services, and the lifting costs of equipment on site of engineering and technical service projects. In the first half of 2026, the Group ’s logistics and lifting costs amounted to RMB260,211,000, representing a decrease of 14.5% as compared with the corresponding period last year, mainly due to the Group ’s establishment of a tracking management system for the rapid delivery of equipment, as well as a cost reduction management system for rapid adjustment of freight rates, which effectively guarantees the timeliness of equipment transportation in all aspects and effectively controls the transportation price of equipment. By continuously improving the logistics monitoring system, improving the delivery mode and capacity structure, and optimizing the allocation and transportation distance, the Group has contributed to the operational efficiency enhancement and cost reduction of the Company. In addition, the unit price of logistics in the first half of 2026 decreased by 8.7% as compared with the corresponding period last year. Horizon Construction Development Limited · 2026 Interim Report
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27INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS (6) The Group ’s research and development expenses are mainly depreciation, materials and staff cost from research and development activities which are used for the upgrade and digitalization of engineering and technical services and internet of things ( “IoT”). In the first half of 2026, the Group ’s research and development expenses amounted to RMB94,937,000 (including depreciation and amortization amounting to RMB3,000), representing a decrease of 10.8% as compared with the corresponding period last year, which was mainly due to a decrease in the Group ’s research and development projects for its digitalisation system. (7) The Group incurred transportation, travelling and information expenses of RMB91,177,000, representing a decrease of 14.3% as compared with the corresponding period last year, which was mainly due to the Group ’s optimization and enhancement of its procurement methods and policies for travelling and communication expenses, thereby contributing to cost control and management of the Company. (8) The Group incurred rental and property management services expenses of RMB62,980,000, representing an increase of 17.9% as compared with the corresponding period last year, mainly due to an increase in rental and property management services expenses as a result of the continued expansion of overseas business of the Group. (9) The Group incurred professional service fees of RMB29,347,000, representing a decrease of 29.5% as compared with the corresponding period last year, which was mainly due to a decrease in the Group ’s litigation and legal expenses. (10) Other expenses mainly include fuel costs consumed by engineering and technical service projects, office expenses and business entertainment and promotion expenses. 2.5 Other Income and Gains In the first half of 2026, the Group realised other income and gains of RMB97,469,000, representing a decrease of 6.6% as compared with RMB104,327,000 for the corresponding period last year, mainly due to a decrease in interest income and government grants for the period. For the six months ended 30 June 2026 2025 RMB’000 RMB’000 Change % Interest income 1,336 3,923 -65.9% Government grant 77,421 83,250 -7.0% Gain on disposal of items of property, plant and equipment and early termination of right-of-use assets 9,327 6,448 44.6% Other 9,385 10,706 -12.3% Total 97,469 104,327 -6.6% 2.6 Provision for Assets The provision for assets of the Group is expected credit losses ( “ECL”) of the financial assets and impairment of repossessed assets under administrative expenses. The Group adopts a prudent strategy to assess the risk of asset provision, to carry out multi-dimensional quantitative assessment on the imported customers and to strengthen the monitoring of the repayment ability of customers through the linkage mechanism of risk review and risk control, so as to ensure the security of assets of the Group. Be global for shared prosperity
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INTERIM REPORT28 MANAGEMENT DISCUSSION AND ANALYSIS The following table sets forth a breakdown of the ECL of the financial assets of the Group: For the six months ended 30 June 2026 2025 RMB’000 Proportion % RMB’000 Proportion % Change % Trade receivables and contract assets 96,204 150.7% -163,029 87.3% N/A Notes receivables -32,826 -51.4% -26,765 14.3% 22.6% Other 464 0.7% 2,917 -1.6% -84.1% Total 63,842 100.0% -186,877 100.0% N/A For details, please refer to the discussion and analysis in 3.3, 3.4 and 3.5 of this section. 2.7 Other Expenses Other expenses of the Group primarily consist of commission expenses, representing commission fees and handling fees charged by banks and non-bank financial institutions in connection with the bank and other borrowings of the Group. In the first half of 2026, the Group ’s other expenses amounted to RMB15,408,000, representing a decrease of 14.9% as compared with RMB18,113,000 for the corresponding period last year, mainly due to a decrease in financing handling fees from banks and non-bank financial institutions and exchange losses for the period. 2.8 Finance Costs Finance costs of the Group primarily consist of (i) interest on borrowings; and (ii) interest on lease liabilities. In the first half of 2026, the Group ’s finance costs amounted to RMB319,205,000, representing a decrease of 20.4% as compared with RMB401,070,000 for the corresponding period last year, mainly due to the decrease in interest on borrowings of the Group of RMB80,546,000. For details, please refer to the discussion and analysis in 2.8.1 and 3.11 of this section. Horizon Construction Development Limited · 2026 Interim Report
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29INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 2.8.1 Interest on borrowings The following table sets forth the average balance of interest-bearing bank and other borrowings, interest expense and average financing rate of the Group: For the six months ended 30 June 2026 2025 Average Balance (1) Interest expense Average financing rate (2) Average Balance (1) Interest expense Average financing rate (2) RMB’000 RMB’000 RMB’000 RMB’000 Interest-bearing bank and other borrowings 20,147,839 308,446 Ŋ 21,063,794 388,992 Ŋ Including: interest-bearing bank and other borrowings, deducting redemption liabilities on ordinary shares 20,147,839 308,446 3.06% 21,063,794 388,992 3.69% Notes: (1) Average balance = (balance of interest-bearing bank and other borrowings at the beginning of the period + balance of interest-bearing bank and other borrowings at the end of the period)/2. (2) Average financing rate = interest expense during the period/corresponding average balance, presented on an annualized basis. In the first half of 2026, the average financing rate of interest-bearing bank and other borrowings of the Group was 3.06%, representing a decrease of 0.63% as compared with 3.69% for the corresponding period last year, mainly due to the cost reduction measures implemented by the Group, and the preferential interest rate continuously available to the Group as the Group ’s main businesses were encouraged by the country. Meanwhile, the Group actively utilized innovative products such as green loans, supply chain financing, and loans for sci-tech innovation, and proactively optimized its debt structure through the early settlement of the liabilities with higher-than-average costs, thus further reducing its overall financing costs. 2.9 Income Tax Expenses In the first half of 2026, the Group ’s income tax expenses amounted to RMB16,479,000, representing an increase of 11.5% as compared with RMB14,786,000 for the corresponding period last year. The effective tax rate of the Group was 31.0%, representing an increase of 1.6% as compared with 29.4% for the corresponding period last year, mainly due to the Group's cautious recognition policy for deferred income tax assets of loss-making subsidiaries. Be global for shared prosperity
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INTERIM REPORT30 MANAGEMENT DISCUSSION AND ANALYSIS 2.10 Profit for the Period Based on the above discussion and analysis, the Group ’s profit for the period was RMB36,602,000, representing an increase of 3.1% as compared with RMB35,490,000 for the corresponding period last year. The following table sets forth the composition and changes in the Group ’s net profit after tax by regions: For the six months ended 30 June 2026 2025 RMB’000 Proportion % RMB’000 Proportion % Change % Domestic regions (including Hong Kong and Macau) -39,333 -107.5% -19,374 -54.6% 103.0% Overseas regions (1) 75,935 207.5% 54,864 154.6% 38.4% Total 36,602 100.0% 35,490 100.0% 3.1% Note: (1) The net profit after tax of overseas segment for the first half of 2025 (before deducting accrued remuneration and interest expenses, etc.) was RMB113,351,000. With the increasing maturity of the overseas segment ’s operations, the Group accrued expenses such as remuneration for senior management and interest expenses from segment profit for domestic regions, based on the human resources deployed and cost of capital for trade receivables utilized by the overseas segment. In the first half of 2026, the net profit after tax of overseas segment (deducting accrued remuneration and interest expenses, etc.) increased by 38.4% compared with the corresponding period of last year. 2.11 Basic Earnings per Share In the first half of 2026, basic earnings per share of the Group amounted to RMB0.012, representing an increase of RMB0.001 or 9.1% from RMB0.011 for corresponding period last year. For the six months ended 30 June 2026 2025 Change % Profit for the period attributable to holders of ordinary shares of the Company (RMB ’000) 36,602 35,490 3.1% Weighted average number of ordinary shares in issue (share) (1) 3,134,748,312 3,133,375,000 0.1% Basic earnings per share (RMB) 0.012 0.011 9.1% Note: (1) Weighted average number of ordinary shares in issue (share) = (the number of outstanding ordinary shares at the beginning of the period + positive or negative change of the number of ordinary shares during the period × number of change months)/6 Horizon Construction Development Limited · 2026 Interim Report
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31INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 3. ANALYSIS OF FINANCIAL CONDITION 3.1 Assets (Summary) As at 30 June 2026, total assets of the Group were RMB35,802,004,000, representing a decrease of RMB566,343,000 or 1.6% as compared with that of the end of last year. The following table sets forth assets of the Group as at the dates indicated: 30 June 2026 31 December 2025 RMB’000 % of total RMB’000 % of total Change % Property, plant and equipment 20,901,421 58.4% 21,583,432 59.4% -3.2% Trade receivables and contract assets 7,716,604 21.5% 7,496,363 20.6% 2.9% Notes receivables (1) 696,359 1.9% 1,061,829 2.9% -34.4% Prepayments, other receivables and other assets 2,866,816 8.0% 2,739,355 7.5% 4.7% Cash and bank balances 1,672,125 4.7% 1,610,210 4.4% 3.8% Right-of-use assets 818,567 2.3% 904,417 2.5% -9.5% Goodwill 173,979 0.5% 173,979 0.5% 0.0% Other assets 956,133 2.7% 798,762 2.2% 19.7% Total assets 35,802,004 100.0% 36,368,347 100.0% -1.6% Including: non-current assets 23,105,992 64.5% 23,717,756 65.2% -2.6% Including: current assets 12,696,012 35.5% 12,650,591 34.8% 0.4% Note: (1) Notes receivables are recorded under “debt investments at fair value through other comprehensive income ” in the interim condensed consolidated statement of financial position. Be global for shared prosperity
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INTERIM REPORT32 MANAGEMENT DISCUSSION AND ANALYSIS The following table sets forth assets of the Group as at the dates indicated: 30 June 2026 31 December 2025 RMB’000 Proportion % RMB’000 Proportion % Change % Domestic regions (including Hong Kong and Macau) 29,520,852 82.5% 30,516,617 83.9% -3.3% Overseas regions 6,281,152 17.5% 5,851,730 16.1% 7.3% Total 35,802,004 100.0% 36,368,347 100.0% -1.6% 3.2 Property, Plant and Equipment As at 30 June 2026, the property, plant and equipment of the Group amounted to RMB20,901,421,000, representing a decrease of RMB682,011,000 or 3.2% as compared with that of the end of last year, due to the combined effect of the following factors: (i) in the first half of 2026, the Group has disposed of certain material assets in Mainland China; and (ii) the provision on depreciation of property, plant and equipment amounted to RMB1,392,710,000 for the period. The following table sets forth the property, plant and equipment of the Group as at the dates indicated: 30 June 2026 31 December 2025 RMB’000 % of total RMB’000 % of total Change % Equipment, materials and moulds for leasing and services 20,281,319 97.0% 20,934,490 97.0% -3.1% Buildings 475,510 2.3% 492,924 2.3% -3.5% Leasehold improvements and others 144,592 0.7% 156,018 0.7% -7.3% Total 20,901,421 100.0% 21,583,432 100.0% -3.2% As at 30 June 2026, the equipment, materials and molds for leasing and services of the Group mainly included aerial work platform of RMB11,940,515,000 (RMB12,178,135,000 as at the end of last year), neo-excavation support system of RMB3,803,747,000 (RMB4,019,109,000 as at the end of last year) and neo-formwork system of RMB3,227,426,000 (RMB3,227,967,000 as at the end of last year). During the period, the Group held products such as material handling equipment (forklifts, telescopic handlers, etc.), lifting equipment (truck-mounted cranes, spider cranes) and mining equipment (wide-body dump trucks, mining excavators, etc.). Horizon Construction Development Limited · 2026 Interim Report
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33INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS Asset distribution by product lines in the first half of 2026 Others Neo-formwork syste m Neo-excavation support system Aerial work platform 19% 6% 59% 16% Asset distribution by product lines in 2025 Others Neo-formwork syste m Neo-excavation support system Aerial work platform 19% 8% 58% 15% The Group researches the operating lease markets by product category and by geography (both domestic and overseas) to estimate appropriate time for further actions. The Group would consider disposing of the equipment and material assets which did not meet the efficiency requirements of the Group to second-hand market after such equipment and material assets have been used for a certain period of time. For equipment maintenance and management, the equipment asset service and maintenance team of the Group has a comprehensive decision-making and balance mechanism comprising front-end monitoring and handling, middle-office process control and back-end supervision and support, and establishes a management system covering the full life circle of asset maintenance, which realises a whole process closed-loop management of “equipment procurement-equipment leasing services flow and process maintenance-equipment overhaul-equipment disposal ”, with the support of organizational guarantee, technical guarantee and material guarantee to improve the overall efficiency of equipment operation. 3.3 Trade Receivables and Contract Assets Trade receivables represent amounts receivable by the Group for services rendered and goods sold to customers. Contract assets represent the right to receive payment arising from the provision of engineering and technical services by the Group to customers; contract assets are initially recognized for revenue earned from engineering and technical services as the receipt of consideration is conditional on successful completion of services and acceptance by the customer, respectively. Upon completion of services and acceptance by the customer, the amounts recognized as contract assets are reclassified to trade receivables. Be global for shared prosperity
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INTERIM REPORT34 MANAGEMENT DISCUSSION AND ANALYSIS The table below sets forth the composition of the trade receivables and contract assets of the Group as at the dates indicated: 30 June 2026 31 December 2025 RMB’000 RMB’000 Change % Trade receivables and contract assets Gross carrying amount 8,986,582 8,661,210 3.8% Provision -1,269,978 -1,164,847 9.0% Net carrying amount 7,716,604 7,496,363 2.9% 3.3.1 Total trade receivables and contract assets As at 30 June 2026, the total trade receivables and contract assets of the Group amounted to RMB8,986,582,000, representing an increase of RMB325,372,000 or 3.8% as compared with that of the end of last year, mainly due to the rapid expansion of overseas business. 3.3.2 Provision for trade receivables and contract assets As at 30 June 2026, the provision for trade receivables and contract assets of the Group amounted to RMB1,269,978,000, representing an increase of RMB105,131,000 or 9.0% as compared with that of the end of last year, mainly due to an increase in the proportion of overseas business operations, which generally feature shorter credit periods and a lower risk profile. The Group has implemented systematic risk management assessment policies to evaluate the credit and performance of our customers. The Group has a large number of customers, in particular, it needs to deal with a large number of small and medium-sized customers in aerial work platform business, among which the Group used a “Hongxin Score ” ( “ʱ”) model to carry out quantitative risk assessment for such customers. By superimposing historical transaction data, external monitoring data and internal cooperation records accumulated in the course of operation from multiple dimensions, such model performs quantitative analysis on 70 subdivision indicators to screen out the characteristics of high-quality customers, thus realising intelligent and automatic evaluation of small and medium-sized customers. For large-scale engineering projects, the Group selected customers and projects through quantitative and manual evaluation, fully evaluated the potential risks such as project compliance risk, construction technology risk, supply guarantee risk, HSE risk and credit risk from multiple dimensions, and formulated corresponding solutions. In terms of trade receivables management, the Group strengthened risk awareness through risk review and risk control and debt linkage mechanism, and realised effective isolation of risk customers through management mechanisms such as blacklist, and conducted on-site evaluation of our customer ’s operation as necessary. The Group reviews the trade receivables balance and follows up with our customers with overdue trade receivables on a quarterly basis. At the same time, the Group classified trade receivables into different risk levels and recognized provisions accordingly with reference to our past recoverability, the quarterly review of ageing of trade receivables and observable changes in economic conditions that correlate with default on trade receivables. Horizon Construction Development Limited · 2026 Interim Report
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35INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 3.3.3 Trade receivables ageing distribution The table below sets forth the ageing distribution of the trade receivables of the Group as at the dates indicated based on the billing date: 30 June 2026 31 December 2025 Total Provision Net Net Total Provision Net Net Change, net % RMB’000 RMB’000 RMB’000 % of total RMB’000 RMB’000 RMB’000 % of total Trade receivables Within 1 year 5,058,185 -321,678 4,736,507 66.4% 5,061,650 -306,628 4,755,022 69.6% -0.4% More than 1 year 3,242,871 -843,029 2,399,842 33.6% 2,870,262 -789,184 2,081,078 30.4% 15.3% Total 8,301,056 -1,164,707 7,136,349 100.0% 7,931,912 -1,095,812 6,836,100 100.0% 4.4% 3.4 Notes Receivables As at 30 June 2026, the notes receivables of the Group amounted to RMB696,359,000, representing a decrease of RMB365,470,000 or 34.4% as compared with that of the end of last year, mainly due to the Group ’s prudent collection strategy. The following table sets forth the notes receivables of the Group as at the dates indicated: 30 June 2026 31 December 2025 RMB’000 % of total RMB’000 % of total Change % Bank acceptances 180,124 25.9% 144,656 13.6% 24.5% Commercial acceptance bills and letters of credit 516,235 74.1% 917,173 86.4% -43.7% Total 696,359 100.0% 1,061,829 100.0% -34.4% Be global for shared prosperity
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INTERIM REPORT36 MANAGEMENT DISCUSSION AND ANALYSIS 3.5 Prepayments, Other Receivables and Other Assets Our prepayments, other receivables and other assets primarily consist of (i) prepayments and deposits, mainly including expenditures related to our procurement and rental of equipment or materials, deposits paid to providers for the re-renting of equipment, deposits paid for financing, and deposits paid to bid for projects; and (ii) tax recoverable, which primarily includes our input VAT to be credited. As at 30 June 2026, the net prepayments, other receivables and other assets of the Group amounted to RMB2,866,816,000, representing an increase of RMB127,461,000 or 4.7% as compared with that of the end of last year, mainly due to an increase in tax recoverable. The following table sets forth a breakdown of the Group ’s prepayments, other receivables and other assets as at the dates indicated: 30 June 2026 31 December 2025 RMB’000 % of total RMB’000 % of total Change % Prepayments and deposits 811,570 28.0% 819,452 29.6% -1.0% Tax recoverable 1,493,970 51.5% 1,447,659 52.2% 3.2% Other receivables 195,937 6.8% 72,920 2.6% 168.7% Others 397,826 13.7% 431,347 15.6% -7.8% Total 2,899,303 100.0% 2,771,378 100.0% 4.6% Provision -32,487 -32,023 1.4% Net 2,866,816 2,739,355 4.7% 3.6 Cash and Bank Balances As at 30 June 2026, the cash and bank balances of the Group amounted to RMB1,672,125,000, representing an increase of RMB61,915,000, or 3.8% as compared with that of the end of last year, mainly due to the Group ’s efforts to conserve cash reserves and maintain liquidity during the first half of the year. The Group retains relatively abundant cash and cash equivalents to support its business development needs and ensure the liquidity safety of the Group. The cash and cash equivalents of the Group are mainly RMB-denominated assets, as well as a small amount of foreign currencies, including Hong Kong Dollar, US Dollar, Euros, Malaysian Ringgit, Indonesian Rupiah, Thai Baht, Vietnamese Dong, Singapore Dollar, UAE Dirham, Saudi Riyal, Turkish Lira, Omani Rial, Macanese Pataca, Kazakhstani Tenge, Tanzanian Shilling, Moroccan Dirham, Zambian Kwacha, Brazilian Real, etc. Horizon Construction Development Limited · 2026 Interim Report
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37INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 3.7 Right-of-Use Assets As at the lease commencement date, the Group recognizes right-of-use assets and the corresponding lease liabilities, except for short-term leases that have a lease term of 12 months or less and leases of low-value assets. As at 30 June 2026, the right-of-use assets of the Group amounted to RMB818,567,000, representing a decrease of RMB85,850,000, or 9.5% as compared with that of the end of last year, mainly due to the normal depreciation of right-of-use assets. The following table sets forth a breakdown of right-of-use assets of the Group as at the dates indicated: 30 June 2026 31 December 2025 RMB’000 % of total RMB’000 % of total Change % Equipment 564,646 69.0% 629,981 69.7% -10.4% Leasehold land 169,635 20.7% 171,988 19.0% -1.4% Offices and others 84,286 10.3% 102,448 11.3% -17.7% Total 818,567 100.0% 904,417 100.0% -9.5% 3.8 Goodwill As at 30 June 2026, the Group ’s goodwill amounted to RMB173,979,000. On 30 May 2025, the Group completed the acquisition of TH Tong Heng Machinery Sdn. Bhd. 3.9 Other Assets As at 30 June 2026, the Group ’s other assets amounted to RMB956,133,000, mainly including (i) RMB457,565,000 of the balance of deferred tax assets recognized for the provision for asset and other deductible temporary differences; and (ii) RMB414,859,000 of balance of inventories for the purpose of raw materials used for manufacturing neo-formwork system and spare parts used for repairing aerial work platform, self-manufactured neo-formwork system and finished goods held for sale in the ordinary course of business. Be global for shared prosperity
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INTERIM REPORT38 MANAGEMENT DISCUSSION AND ANALYSIS 3.10 Liabilities (Overview) As at 30 June 2026, the total liabilities of the Group were RMB24,742,222,000, representing a decrease of RMB301,280,000, or 1.2% as compared with that of the end of last year. The following table sets forth the details of the Group ’s liabilities as at the dates indicated: 30 June 2026 31 December 2025 RMB’000 % of total RMB’000 % of total Change % Interest-bearing bank and other borrowings 19,967,472 80.7% 20,328,205 81.1% -1.8% Trade and bills payables 3,148,545 12.7% 2,924,244 11.7% 7.7% Other payables and accruals 860,114 3.5% 995,027 4.0% -13.6% Lease liabilities 581,345 2.3% 607,852 2.4% -4.4% Tax payables 38,305 0.3% 96,939 0.4% -60.5% Derivative financial instruments 10,906 0.0% 17,298 0.1% -37.0% Financial liabilities at fair value through profit or loss 73,937 0.3% 73,937 0.3% 0.0% Deferred tax liabilities 61,598 0.2% – 0.0% 100.0% Total liabilities 24,742,222 100.0% 25,043,502 100.0% -1.2% Including: Current liabilities 11,646,324 47.1% 11,528,820 46.0% 1.0% Including: Non-current liabilities 13,095,898 52.9% 13,514,682 54.0% -3.1% 3.11 Interest-bearing Bank and Other Borrowings In the face of the complex domestic and international financial environment, the Group continued to optimize its debt structure in the first half of 2026 with good progress in financing. In the first half of 2026, the Group actively expanded its credit resources in Hong Kong, Macau and other overseas regions, thus further enhancing the stability of financing. Moreover, the Group actively promoted the use of innovative products such as green loans, supply chain financing and loans for sci-tech innovation to further reduce financing costs. As at 30 June 2026, the Group ’s balance of interest-bearing bank and other borrowings amounted to RMB19,967,472,000, representing a decrease of RMB360,733,000, or 1.8% as compared with that of the end of last year. The decrease in the balance of interest-bearing bank and other borrowings was mainly due to the Group ’s proactive control of the size of its interest-bearing liabilities to optimize its financial leverage and early settlement of the liabilities with higher-than-average costs. Horizon Construction Development Limited · 2026 Interim Report
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39INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS The following table sets forth the compositions of the Group ’s interest-bearing bank and other borrowings as at the dates indicated: 30 June 2026 31 December 2025 RMB’000 Proportion % RMB’000 Proportion % Change % Secured 4,591,670 23.0% 5,840,869 28.7% -21.4% Unsecured 15,375,802 77.0% 14,487,336 71.3% 6.1% Total 19,967,472 100.0% 20,328,205 100.0% -1.8% Including: Current liabilities 7,386,690 37.0% 7,294,708 35.9% 1.3% Non-current liabilities 12,580,782 63.0% 13,033,497 64.1% -3.5% In the first half of 2026, the Group has prudentially managed financial risk. As at 30 June 2026, the proportion of unsecured interest-bearing bank and other borrowings was 77.0%, representing an increase from 71.3% as at the end of last year, while the proportion of secured interest-bearing bank and other borrowings represented a decrease as compared with that of the end of last year. Changes in the Group ’s secured and unsecured structure are mainly attributable to that the Group optimized its financing structure and adjusted the proportion of interest-bearing bank and other borrowings. 3.12 Trade and Bills Payables Trade and bills payables are amounts payable to suppliers. As at 30 June 2026, the Group ’s trade and bills payables amounted to RMB3,148,545,000, representing an increase of RMB224,301,000 or 7.7% as compared with that of the end of last year, which was mainly due to the Group ’s proactive management of payment terms with its suppliers. Be global for shared prosperity
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INTERIM REPORT40 MANAGEMENT DISCUSSION AND ANALYSIS 3.13 Other Payables and Accruals The Group ’s other payables and accruals primarily include (i) deposits, which represent deposits paid by our customers; (ii) salary and welfare payable to our employees; (iii) advanced rentals and contract liabilities, which represent amounts received from customers by the Group in advance for services according to the payment schedule as agreed in the contract; (iv) interest payables relating to bank and other borrowings; and (v) other tax payables, primarily VAT payables. As at 30 June 2026, the Group ’s balance of other payables and accruals was RMB860,114,000, representing a decrease of RMB134,913,000 or 13.6% as compared with that of the end of last year, which was mainly due to a decrease in value-added tax payable of the Group in the first half of the year. 3.14 Lease Liabilities As mentioned in 3.7, other than part of leases, the right-of-use assets and corresponding lease liabilities are recognized by the Group at the commencement date of the lease. The land leased by the Group has been prepaid and no subsequent payment is required, therefore there is no balance of land lease liabilities. The lease liabilities of the Group mainly arise from leases of office and equipment. As at 30 June 2026, the lease liabilities of the Group amounted to RMB581,345,000, representing a decrease of RMB26,507,000 as compared with that of the end of last year, which was mainly due to the normal amortization of lease liabilities. 3.15 Derivative Financial Instruments The Group's derivative financial instrument liabilities are cross-currency swap financial instruments, which are used to hedge exposure to exchange and interest rate risks on foreign currency floating-rate borrowings of the Group. The Group applied hedge accounting to such instruments, with changes in fair value of the cross-currency swap financial instruments recognized in equity. 3.16 Financial Liabilities at Fair Value Through Profit or Loss The Group ’s financial liabilities at fair value through profit or loss arose from the acquisition of TH Tong Heng Machinery Sdn. Bhd. Pursuant to the shareholders ’ agreement, the Group may purchase the remaining 20% equity interest in TH Tong Heng Machinery Sdn. Bhd. at exercise prices determined based on key metrics, including the average adjusted earnings before interest, taxes, depreciation, and amortisation ( “EBITDA ”) from the accounts for the three years ending 31 December 2027 and 31 December 2034, as well as the cash and debt position as of 31 December 2027 and 31 December 2034, respectively. As the Group has practical control or obtainable access over the minority interests, the Group actually controlled 100% equity interests over TH Tong Heng Machinery Sdn. Bhd. as of the acquisition date. The contingent consideration was initially recognised by RMB73,937,000, which is presented under financial liabilities at fair value through profit or loss. Horizon Construction Development Limited · 2026 Interim Report
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41INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 3.17 Shareholders ’ equity As at 30 June 2026, the Company ’s total equity was RMB11,059,782,000, representing a decrease of RMB265,063,000 or 2.3% as compared with that of the end of last year. The following table sets forth the analysis of the Company ’s equity as at the dates indicated: 30 June 2026 31 December 2025 RMB’000 RMB’000 Change % Share capital (1) 421 421 – Reserves 11,059,361 11,324,424 -2.3% Total equity 11,059,782 11,324,845 -2.3% Note: (1) The changes in the Company ’s equity in the first half of 2026 are shown in the table below Equity of the Company RMB’000 31 December 2025 11,324,845 Profit for the period 36,602 Dividend distribution -43,614 Other changes in equity (1) -258,051 30 June 2026 11,059,782 On 9 June 2026, the annual general meeting of the Company considered and approved the distribution of 2025 final dividend of HK$0.016 per share, which was paid on 9 July 2026. Note: (1) Other changes in equity mainly represented foreign currency translation effects arising from related party transactions. Be global for shared prosperity
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INTERIM REPORT42 MANAGEMENT DISCUSSION AND ANALYSIS 4. CAPITAL MANAGEMENT For the purpose of stable capital management and subject to the changes in economic environment, the Group has adopted prudential capital management strategy. The Group regulates capital structure and financial management efficiency through financial return criteria (i.e. “return on average equity ”, “return on average total assets ” and others) and leverage ratio (i.e. “gearing ratio ”). The following table sets forth the key financial ratios of the Group: For the six months ended 30 June 2026 2025 Return on average equity (1) 0.7% 0.6% Return on average total assets (2) 0.2% 0.2% Gearing ratio (3) 69.1% 69.0% Notes: (1) Return on average equity = profit for the period attributable to holders of ordinary shares of the Company/average balance of total equity at the beginning and the end of the period attributable to holders of ordinary shares of the Company, presented on an annualized basis. (2) Return on average total assets = profit for the period attributable to holders of ordinary shares of the Company/average balance of total assets at the beginning and the end of the period, presented on an annualized basis. (3) Gearing ratio = the total liabilities for the end of year or period/the total assets for the end of year or period. As at 31 December 2025, the Group ’s gearing ratio was 68.9%. 4.1 Return on Average Equity In the first half of 2026, the Group ’s return on average equity was 0.7%, remaining relatively stable compared with the corresponding period of last year. 4.2 Return on Average Total Assets In the first half of 2026, the Group ’s return on average total assets was 0.2%, remaining stable compared with the corresponding period of last year. 4.3 Gearing Ratio As at 30 June 2026, the Group ’s gearing ratio was 69.1%, representing an increase of 0.2% as compared with that of 68.9% at the end of last year. Horizon Construction Development Limited · 2026 Interim Report
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43INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS 5. CAPITAL EXPENDITURE The Group ’s capital expenditure consisted of additions to property, plant and equipment and other intangible assets. In the first half of 2026, our capital expenditure amounted to RMB961,682,000, representing an increase of 16.6% as compared with RMB824,817,000 for the same period of last year. The Group intends to finance future capital expenditure plans through cash flow from operating activities and bank and other borrowings. 6. RISK MANAGEMENT The Group is exposed to various types of financial risks in the ordinary course of business, including foreign currency risk, liquidity risk etc. Overall risk management strategy of the Group focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on our financial performance. 6.1 Foreign Currency Risk The Group ’s monetary assets, liabilities and transactions are principally denominated in RMB, and the business dominated in other currencies is still in the preliminary stage of development with a relatively small scale. As at 30 June 2026, the Group adopted prudent currency risk management, and most of currencies, excluding those hedged by derivative financial instruments against foreign exchange exposure, owned by the Group were dominated with RMB. Therefore, the Group’s foreign exchange risk exposure is limited and there is a low foreign currency risk. 6.2 Liquidity Risk The Group ’s objective is to maintain balance between continuity of funding and flexibility by using interest-bearing bank and other borrowings. The Group managed to control the liquidity risk through the following measures: (i) optimize our financing structure by expanding long-term financing products to mitigate the maturity mismatches between assets and liabilities; and (ii) operate effective capital plan and management mechanism and maintain a certain percentage of capital position to ensure the safe liquidity. 7. PLEDGE OF ASSETS As at 30 June 2026, the Group had pledged its property, plant and equipment of RMB5,602,704,000 to non-bank financial institutes in order to secure other borrowings, and used deposits of RMB105,080,000 as collateral for non-bank borrowings. 8. CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS As at 30 June 2026 and 31 December 2025, the Group did not have any material contingent liability, guarantees or any other material litigation or claims outstanding or threatened against the Group that could have a material adverse effect on its business, financial condition or results of operations. Be global for shared prosperity
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INTERIM REPORT44 MANAGEMENT DISCUSSION AND ANALYSIS As at the dates indicated, the capital commitments of the Group are as follows: 30 June 2026 31 December 2025 RMB’000 RMB’000 Contracted, but not provided for: Purchase of plant and machinery 143,722 29,980 9. MATERIAL INVESTMENTS, ACQUISITIONS OR DISPOSALS On 13 March 2026, Tianjin Hongtou Enterprise Management Co., Ltd. ( “Tianjin Hongtou ”, being a wholly-owned subsidiary of the Company) and Shanghai Depeng Industrial Co., Ltd. ( “Shanghai Depeng ”, being a wholly-owned subsidiary of Far East Horizon) entered into an equity transfer agreement, pursuant to which Tianjin Hongtou has conditionally agreed to acquire and Shanghai Depeng has conditionally agreed to sell 25.6306% of the equity interest in Shanghai Hongzuo New Energy Technology Co., Ltd. ( “Shanghai Hongzuo ” or “Target Company ”) held by it at a consideration of RMB77,402,873.02. On 31 March 2026, all the conditions precedent to the equity transfer agreement had been fulfilled, and therefore the equity transfer agreement has become unconditional. The acquisition has completed accordingly. The acquisition facilitates the Company and Shanghai Hongzuo ’s creation of strategic synergies in the Middle East and Southeast Asia markets, as well as their joint expansion of opportunities across the overseas distributed photovoltaic upstream and downstream industries, which realizes the overall interests of the Company and its shareholders. For details, please refer to the announcements of the Company dated 13 March 2026 and 9 April 2026, respectively. Save as disclosed above, the Group did not have any material investments, acquisitions or disposals of subsidiaries, associates and joint ventures in the first half of 2026. 10. HUMAN RESOURCES As at 30 June 2026, the Group had a total of 4,249 employees (same period of 2025: 4,317 employees). 10.1 Share Incentive Scheme With a view of promoting the Group to establish and improve the medium-long term incentive and restriction mechanisms for fully motivating initiative of the management, attracting and retaining the excellent management talents, and effectively integrating the interests of shareholders, the Company and the management to guarantee the long-term, stable and healthy development, the Company, as considered and approved by the board of directors, established an equity incentive plan in 2024, including a restricted share award scheme and a share option scheme. Horizon Construction Development Limited · 2026 Interim Report
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45INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS The Company adopted the 2024 restricted share award scheme (the “2024 Restricted Share Award Scheme ”) on 12 March 2024 and the 2024 share option scheme (the “2024 Share Option Scheme ”) on 4 June 2024. For details of the 2024 Restricted Share Award Scheme, please refer to the announcement of the Company dated 12 March 2024. For details of the 2024 Share Option Scheme, please refer to the announcements of the Company dated 12 March 2024 and 4 June 2024 as well as the circular of the Company dated 2 May 2024. 10.1.1 2024 Share Option Scheme During the reporting period, no options were granted under the 2024 Share Option Scheme. A summary of the movements of the outstanding share options under the 2024 Share Option Scheme during the reporting period is as follows: Number of share options Grantee Grant date Vesting period Exercise period Exercise price per Share HK$ Outstanding as at 1 January 2026 Granted Exercised Lapsed Cancelled Outstanding as at 30 June 2026 (Note 1) (Note 2) (Notes 3 to 4) (Note 5) (Note 6) ZHAN Jing Executive Director and Chief Executive Officer 8 August 2025 8 August 2026 – 8 August 2028 8 August 2026 – 8 August 2035 1.34 2,420,000 – – – – 2,420,000 TANG Li Executive Director and Co-Chief Financial Officer 8 July 2024 8 July 2025 – 8 July 2027 8 July 2025 – 8 July 2034 1.45 406,667 – – – – 406,667 TANG Li Executive Director and Co-Chief Financial Officer 8 August 2025 8 August 2026 – 8 August 2028 8 August 2026 – 8 August 2035 1.34 330,000 – – – – 330,000 Subtotal for Directors 3,156,667 – – – – 3,156,667 Employees 8 July 2024 8 July 2025 – 8 July 2027 8 July 2025 – 8 July 2034 1.45 5,958,669 – – 466,667 – 5,492,002 Employees 8 August 2025 8 August 2026 – 8 August 2028 8 August 2026 – 8 August 2035 1.34 6,050,000 – – 570,000 – 5,480,000 Total 15,165,336 – – 1,036,667 – 14,128,669 Be global for shared prosperity
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INTERIM REPORT46 MANAGEMENT DISCUSSION AND ANALYSIS Note 1: Subject to the 2024 Share Option Scheme Rules, the share options granted are subject to a vesting scheme in three tranches: one-third shall be vested on the first anniversary of the grant date; one-third shall be vested on the second anniversary of the grant date; and the remaining shall be vested on the third anniversary of the grant date. Note 2: According to the 2024 Share Option Scheme, the share options shall be exercised within the Share Option Period. “Share Option Period ” shall mean, in respect of any particular share option, a period (which may not be later than 10 years from the offer date of that share option) to be determined and notified by the Board or the Administration Committee to the grantee thereof and, in the absence of such determination, from the offer date to the earlier of (i) the date on which such share option lapses; and (ii) 10 years from the offer date of such share option. There is no minimum period for which any vested share option must be held before it can be exercised, and no performance target is required for a grantee before the exercise of vested share options. Note 3: The exercise price is not less than the higher of: (i) the closing price of HK$1.45 per Share on the Stock Exchange as stated in the Stock Exchange ’s daily quotations sheet on 8 July 2024 (i.e. the grant date); and (ii) the average closing price of approximately HK$1.35 per Share as stated in the Stock Exchange ’s daily quotations sheets for the five trading days immediately preceding 8 July 2024. The closing price immediately preceding the date of grant of share options was HK$1.56 per Share. Note 4: The exercise price is not less than the higher of: (i) the closing price of HK$1.34 per Share on the Stock Exchange as stated in the Stock Exchange ’s daily quotations sheet on 8 August 2025 (i.e. the grant date); and (ii) the average closing price of approximately HK$1.28 per Share as stated in the Stock Exchange ’s daily quotations sheets for the five trading days immediately preceding 8 August 2025. The closing price immediately preceding the date of grant of share options was HK$1.28 per Share. Note 5: The performance targets attached to the grant of options include (a) measurable performance benchmark which the Board considers relevant to the grantee, such as key performance indicators of respective department(s) and/or subsidiary(ies) to which the grantee belongs, individual position, ranking, annual appraisal results and performance of the grantee as determined under the Company ’s employee performance evaluation system; (b) the grantee ’s fulfilment of milestones with respect to, including but not limited to, the business development of the Group; (c) such performance targets as the Board considers appropriate, such as the Company ’s annual results, the annual growth in the revenue of the Group as compared to the previous financial year and the performance of the Group. The Board or the Administration Committee will conduct assessment by comparing the actual performance, operating or financial results of the Company, the Company ’s subsidiary(ies) and the actual performance of the grantee with the pre-determined targets or individual performance indicators to determine whether or to what extent the performance targets have been met. Such pre-determined targets or individual performance indicators specified in the Share Option Offer letter may be set by the Board or the Administration Committee on a case by case basis with reference to factors including the specific position and role of the relevant grantee, and the overall business plan, strategy and the expected financial performance of the Group in the relevant period. The performance targets will be deemed to be met when the actual level achieved reaches or exceeds the level of the pre-determined targets or individual performance indicators. For details, please refer to the section headed “V. Grant of Share Options ” set forth in Appendix I to the circular of the Company dated 2 May 2024. Horizon Construction Development Limited · 2026 Interim Report
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47INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS Note 6: No options were exercised under the 2024 Share Option Scheme during the reporting period. Therefore, the weighted average closing price of such shares immediately prior to the exercise date of the options as required to be disclosed under Rule 17.07(1)(d) of the Listing Rules is not applicable. Note 7: On 1 January 2026, the number of share options that may be granted under the 2024 Share Option Scheme was 32,793,324, while the number of share options that are available for grant under the 2024 Share Option Scheme as at the end of the reporting period was 33,829,991. The number of shares to be issued under the share options granted but remain outstanding was 14,128,669. The weighted average number of shares that may be issued in respect of share options granted under the 2024 Share Option Scheme divided by the number of shares in issue (excluding treasury shares) during the reporting period is 0.4%. 10.1.2 2024 Restricted Share Award Scheme During the reporting period, no shares were granted or vested pursuant to the 2024 Restricted Share Award Scheme. The number of shares available for grant under the 2024 Restricted Share Award Scheme was 79,029,867 Shares as at 30 June 2026. Grantees under such award scheme are not required to pay any amount upon acceptance of restricted shares awards granted. Movements of the number of Restricted Shares during the reporting period Grantee Grant date Vesting period Outstanding as at 1 January 2026 Granted Vested Lapsed Cancelled Outstanding as at 30 June 2026 (Note 1) (Notes 2 and 3) (Note 4) (Note 5) ZHAN Jing Executive Director and Chief Executive Officer 8 August 2025 8 August 2026 – 8 August 2028 5,650,000 – – – – 5,650,000 TANG Li Executive Director and Co-Chief Financial Officer 8 July 2024 8 July 2025 – 8 July 2027 946,667 – – – – 946,667 TANG Li Executive Director and Co-Chief Financial Officer 8 August 2025 8 August 2026 – 8 August 2028 760,000 – – – – 760,000 Subtotal for Directors 7,356,667 – – – – 7,356,667 Employees 8 July 2024 8 July 2025 – 8 July 2027 12,413,339 – – 1,093,333 – 11,320,006 Employees 8 August 2025 8 August 2026 – 8 August 2028 14,030,000 – – 1,330,000 – 12,700,000 Subtotal for employees 26,443,339 – – 2,423,333 – 24,020,006 Total 33,800,006 – – 2,423,333 – 31,376,673 Be global for shared prosperity
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INTERIM REPORT48 MANAGEMENT DISCUSSION AND ANALYSIS Note 1: Subject to the 2024 Restricted Share Award Scheme Rules, upon satisfaction of vesting conditions, the Restricted Shares granted to the grantees are subject to a vesting scheme in three tranches: one-third shall be vested on the first anniversary of the granting date; one-third shall be vested on the second anniversary of the granting date; and the remaining shall be vested on the third anniversary of the granting date. The exercise period for Restricted Shares granted has not been specified under the rules of the award scheme. Note 2: According to the 2024 Restricted Share Award Scheme Rules, in determining the number of Restricted Shares to be granted to any selected grantee, the Board or the Administration Committee shall take into account certain matters, including but not limited to: i. the current and expected contribution of the Group ’s profits from relevant selected grantees; ii. the expertise, skills or experience, performance and synergies at work and achievement of performance targets of relevant selected grantees; iii. the general financial condition, overall business objectives and future development plans of the Group; and iv. any other matters that the Board or the Administration Committee deems relevant. The grantee of Restricted Shares is not required to pay any consideration for the acceptance of the Restricted Share awards granted. For details, please refer to the announcement of the Company dated 12 March 2024. Note 3: The closing prices immediately preceding the date of grant of Restricted Shares, i.e. 8 July 2024 and 8 August 2025, were HK$1.56 per Share and HK$1.28 per Share, respectively. Note 4: No shares were vested under the 2024 Restricted Share Award Scheme during the reporting period. Therefore, the weighted average closing price of such shares immediately prior to the vesting date as required to be disclosed under Rule 17.07(1)(d) of the Listing Rules is not applicable. Note 5: As at 1 January 2026, the number of shares that may be granted under the 2024 Restricted Share Award Scheme was 76,606,534. As at 30 June 2026, the number of shares that may be granted under the 2024 Restricted Share Award Scheme was 79,029,867. Note 6: The 2024 Restricted Share Award Scheme does not involve the issue of new shares. Therefore, the weighted average number of Shares that may be issued in respect of the Restricted Shares granted under the 2024 Restricted Share Award Scheme during the reporting period divided by the number of issued shares (excluding treasury shares) during the reporting period as required to be disclosed under Rule 17.07(3) of the Listing Rules is not applicable. 10.2 Employee benefits The Group provides competitive remuneration packages for employees based on their qualifications, capabilities, performance and comparable information on the market, in order to attract, retain and encourage excellent talents. The remuneration packages generally include salary, contributions to pension schemes and discretionary bonuses. The Group also offers training for employees. The Group will regularly review the remuneration packages to reflect market practices and employees ’ performance. The Chinese employees of the Group are entitled to participate in several government-regulated housing fund, medical insurance and other social insurance schemes. The Group makes monthly contributions to those funds based on a certain percentage of employees ’ salaries, subject to certain ceilings. The Group ’s obligations in respect of these funds are limited to the contributions payable each year. The contributions to the housing fund, medical insurance and other social insurance are expensed when incurred. In accordance with the PRC Labor Law, the Group has made contributions to social insurance (including endowment insurance, medical insurance, unemployment insurance, work-related injury insurance and maternity Horizon Construction Development Limited · 2026 Interim Report
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49INTERIM REPORT MANAGEMENT DISCUSSION AND ANALYSIS insurance) and the housing fund for employees. The Group also provides supplemental medical insurance, group accident insurance and employer liability insurance to its employees in addition to those required under the PRC regulations. As at 30 June 2026, the Group complied with all statutory social insurance and housing fund obligations applicable to the Group under the PRC laws in all material aspects. 11. EVENTS AFTER THE REPORTING PERIOD The Group had no significant subsequent events which are required to be disclosed after 30 June 2026 up to the date of this report. 12. FUTURE PROSPECT To navigate the downward cyclical pressure on the domestic construction industry and to seize the incremental growth opportunities in overseas markets, the Group has maintained its strategic focus and firmly committed to the implementation of its “Three + Three + Three ” development strategy. Guided by a market-oriented approach and a customer-centric mindset, the Group has continued to deepen the optimization and adjustment of its asset structure and business mix. Leveraging the concept of lean operations, the Group has comprehensively upgraded its operation and management system, steadily advancing towards its development vision of becoming a “first-class global enterprise ”, and consistently creating long-term value for all stakeholders. On the domestic market front, the Group will continue to promote lean operations and reinforce its operational foundation, to comprehensively enhance its resilience against cyclical downturns and risks. Driven by a customer-centric approach, the Group will implement refined customer management, build a full-lifecycle customer service system, and continuously optimize service quality and customer loyalty. Concurrently, the Group will pursue precise alignment of its asset structure with market demand, develop innovative service models such as multi-industry solutions and urban ecosystems offerings, optimize full-lifecycle asset management, and steadily improve asset operational efficiency. On the overseas market front, the Group will steadily advance its global footprint, leveraging the comparative advantages of the domestic supply chain to capture incremental opportunities in its overseas business. In countries where the Group already established a presence, it will continuously refine its management standards, deepen localized operations, and provide robust empowerment and support through its standardized system, thereby ensuring the stable and sound operation of its overseas business. At the same time, the Group will closely track emerging markets with growth potential across the world, and continue to broaden and enhance its international business presence. The Group will remain steadfast in implementing its established development strategy, coordinating high-quality resources both domestically and internationally, precisely capturing industry development opportunities, deepening synergies and linkages across business segments, and continuously building its core competitive barriers. In parallel, the Group will comprehensively upgrade its refined management system to promote the steady improvement of operational quality and efficiency, positioning the Company to enter a new stage of development characterized by higher quality and greater resilience. Be global for shared prosperity
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INTERIM REPORT50 DISCLOSURE OF INTERESTS DIRECTORS ’ AND CHIEF EXECUTIVES ’ INTERESTS AND/OR SHORT POSITIONS IN THE SHARES, UNDERLYING SHARES AND DEBENTURES OF THE COMPANY OR ANY OF ITS ASSOCIATED CORPORATIONS As at 30 June 2026, the interests or short positions of the directors and chief executives of the Company in the shares, underlying shares and debentures of the Company and any of its associated corporations (within the meaning of Part XV of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) (the “SFO”)) which were required to be notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests or short positions which they are taken or deemed to have under such provisions of the SFO), or which were required, pursuant to section 352 of the SFO, to be entered in the register referred to therein, or which were required, pursuant to the Model Code for Securities Transactions by Directors of Listed Issuers (the “Model Code ”), to be notified to the Company and the Stock Exchange, were detailed as follows: (1) Interest in the Company: Name of the director and chief executive Capacity/nature of interest Total number of ordinary Shares (1) Approximate percentage of interest (2) KONG Fanxing Beneficial owner 8,078,052 (L) 0.25% ZHAN Jing Beneficial owner 17,928,186 (L) (3) 0.56% TANG Li Beneficial owner 2,682,459 (L) (4) 0.08% XU Huibin Beneficial owner 1,215,290 (L) 0.03% HE Ziming Beneficial owner 3,030,665 (L) 0.09% Interest in a controlled corporation 102,620,112 (L) (5) 3.21% Interest of spouse 105,449,332 (L) (6) 3.29% GUO Lina Beneficial owner 122,184 (L) 0.00% LIU Jialin Beneficial owner 27,777 (L) 0.00% Interest of spouse 27,777 (L) 0.00% Notes: (1) The letter “L” denotes the person ’s long position in the shares of the Company (the “Shares ”). (2) The percentage is calculated on the basis of 3,197,244,000 Shares in issue of the Company as at 30 June 2026. Horizon Construction Development Limited · 2026 Interim Report
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51INTERIM REPORT DISCLOSURE OF INTERESTS (3) These interests include (i) 2,420,000 Shares in respect of the share options granted under the 2024 Share Option Scheme of the Company; (ii) 5,650,000 Shares in respect of the award shares granted under the 2024 Restricted Share Award Scheme of the Company; and (iii) in addition to the foregoing interests, to the best knowledge, information and belief of the Directors and having made all reasonable enquiries, interests held by Mr. Zhan Jing as a beneficial owner in 9,858,186 ordinary shares of the Company as at 30 June 2026. For details of the schemes, please refer to the 2025 annual report of the Company. (4) These interests include (i) 736,667 Shares in respect of the share options granted under the 2024 Share Option Scheme of the Company; (ii) 1,706,667 Shares in respect of the award shares granted under the 2024 Restricted Share Award Scheme of the Company; and (iii) in addition to the foregoing interests, to the best knowledge, information and belief of the Directors and having made all reasonable enquiries, interests held by Mr. Tang Li as a beneficial owner in 239,125 ordinary shares of the Company as at 30 June 2026. For details of the schemes, please refer to the 2025 annual report of the Company. (5) Farsighted Wit Limited is wholly owned by Tianjin Hongjian Enterprise Management Consulting Center (Limited Partnership) ( “Tianjin Hongjian ”). The limited partner of Tianjin Hongjian holding more than one-third of partnership interest in Tianjin Hongjian is Tianjin Lanjin Enterprise Management Consulting Center (Limited Partnership) ( “Tianjin Lanjin ”), which is controlled by Tianjin Hongsheng Leasing Co., Ltd. as a general partner and owned more than one- third of partnership interest by Mr. HE Ziming as a limited partner. In addition, Shanghai Lanjin Stone Decoration Co., Ltd., (ʮ̡ ) is wholly owned by Mr. HE Ziming. Accordingly, Mr. HE Ziming is deemed to be interested in the 102,620,112 Shares held by Farsighted Wit Limited and Shanghai Lanjin Stone Decoration Co., Ltd., ( ɪ ʮ̡ ) for the purpose of Part XV of the SFO. (6) Ms. LIU Lifang, the spouse of Mr. HE Ziming, holds the Shares through Lanjin Limited, which was incorporated in the British Virgin Islands as an exempted company with limited liability and is wholly owned by Ms. LIU Lifang. Be global for shared prosperity
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INTERIM REPORT52 DISCLOSURE OF INTERESTS (2) Interests in the Shares or Underlying Shares of Associated Corporations of the Company: Name of the director or chief executive Name of associated corporation Nature of interest Number of shares/ underlying shares (1) Approximate percentage of interest in shares/underlying shares of associated corporation (7) KONG Fanxing Far East Horizon Beneficial owner 103,574,032 (L) (2) 2.14% Interest in a controlled corporation 868,947,897 (L) (3) 18.03% XU Huibin Far East Horizon Beneficial owner 16,667,577 (L) (4) 0.34% ZHAN Jing Far East Horizon Beneficial owner 16,750,126 (L) (5) 0.34% GUO Lina Far East Horizon Beneficial owner 1,362,953 (L) (6) 0.02% HE Ziming Far East Horizon Beneficial owner 7,080,000 (L) 0.14% TANG Li Far East Horizon Beneficial owner 64 (L) 0.00% LIU Jialin Far East Horizon Beneficial owner 125,000 (L) 0.00% Interest of spouse 125,000 (L) 0.00% Notes: (1) The letter “L” denotes long position in the shares/underlying shares. (2) These interests include Mr. KONG Fanxing ’s entitlement to receive shares in Far East Horizon pursuant to share schemes of Far East Horizon. (3) These interests include 272,237,062 shares held directly by Idea Delicacy Limited, 40,726,000 shares held directly by Powerful Force HK Limited, 159,670,000 shares held directly by Will of Heaven HK Limited, 107,503,000 shares held directly by Swallow Gird HK Limited, 197,945,000 shares held directly by Energon HK Limited and an aggregate of 90,866,835 shares held directly by certain employees of Far East Horizon. All of them and their employees had unconditionally, irrevocably and permanently entrusted Idea Prosperous Limited, a company 100% owned by Mr. KONG Fanxing, to exercise the voting rights attached to the shares. (4) These interests include Mr. XU Huibin ’s entitlement to receive shares in Far East Horizon pursuant to share schemes of Far East Horizon. (5) These interests include Mr. ZHAN Jing ’s entitlement to receive shares in Far East Horizon pursuant to share schemes of Far East Horizon. Horizon Construction Development Limited · 2026 Interim Report
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53INTERIM REPORT DISCLOSURE OF INTERESTS (6) These interests include Ms. GUO Lina ’s entitlement to receive shares in Far East Horizon pursuant to share schemes of Far East Horizon. (7) The percentage is calculated on the basis of 4,818,107,647 shares in issue of Far East Horizon as at 30 June 2026. Saved as disclosed above, as at 30 June 2026, none of the directors or the chief executive of the Company had any interests or short positions in the shares, underlying shares or debentures of the Company or any of its associated corporations (within the meaning of Part XV of the SFO), which were required to be notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests or short positions which he/she is taken or deemed to have under such provisions of the SFO), or which were required to be entered in the register kept by the Company pursuant of Section 352 of the SFO or which were required to be notified to the Company and the Stock Exchange pursuant to the Model Code. SUBSTANTIAL SHAREHOLDERS ’ INTERESTS IN THE SHARES Based on the information available to the directors of the Company, as at 30 June 2026 (including such information as was available on the website of the Stock Exchange) or so far as they are aware of, as at 30 June 2026, other than the directors and chief executives of the Company, the entities or individuals who had interests or short positions in the Shares or underlying Shares which fall to be disclosed to the Company under Divisions 2 and 3 of Part XV of the SFO, or which were recorded in the register kept by the Company under section 336 of the SFO or had otherwise notified to the Company were as follows: Name of the shareholder Nature of interest Number of ordinary Shares (1) Approximate percentage of interest (2) Far East Horizon Beneficial owner 1,333,247,413 (L) 41.70% Interest in a controlled corporation 102,130,000 (L) (3) 3.19% Farsighted Wit Limited Beneficial owner 102,130,000 (L) (3) 3.19% Tianjin Hongsheng Leasing Co., Ltd. Interest in a controlled corporation 102,130,000 (L) (3) 3.19% Tianjin Hongjian Enterprise Management Consulting Center (Limited Partnership) Interest in a controlled corporation 102,130,000 (L) (3) 3.19% Tianjin Lanjin Enterprise Management Consulting Center (Limited Partnership) Interest in a controlled corporation 102,130,000 (L) (3) 3.19% International Far Eastern Leasing Co., Ltd. Interest in a controlled corporation 102,130,000 (L) (3) 3.19% Far East Horizon (Tianjin) Financial Leasing Co., Ltd. Interest in a controlled corporation 102,130,000 (L) (3) 3.19% Be global for shared prosperity
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INTERIM REPORT54 DISCLOSURE OF INTERESTS Notes: (1) The letter “L” denotes the long position in the Shares. (2) The percentage is calculated on the basis of 3,197,244,000 shares in issue as at 30 June 2026. (3) Tianjin Hongsheng is owned as to 100% by Far East Horizon (Tianjin) Financial Leasing Co., Ltd., which is in turn owned as to 55.38% by Far East Horizon and 44.62% by International Far Eastern Leasing Co., Ltd. (a wholly-owned subsidiary of Far East Horizon). Please refer to Note (5) of the section headed “Directors ’ and Chief Executives ’ Interests and/or Short Positions in the Shares, Underlying Shares and Debentures of the Company or any of its Associated Corporations – (1) Interests in the Company ” for further details of the shareholding structure. Saved as disclosed above, as at 30 June 2026, the register required to be kept under section 336 of the SFO showed that the Company had not been notified by any person of any interest or short position in the Shares or underlying Shares. Horizon Construction Development Limited · 2026 Interim Report
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55INTERIM REPORT CORPORATE GOVERNANCE CORPORATE GOVERNANCE CODE The Company has applied the principles and code provisions as set out in the Corporate Governance Code (the “CG Code ”) contained in Part 2 of Appendix C1 to the Listing Rules. The Company has complied with the code provisions of the CG Code throughout the period from 1 January 2026 to 30 June 2026, except for Code Provision F.1.3 as explained below. Code Provision F.1.3 of the CG Code stipulates that, among others, the chairman of the board should attend the annual general meeting of listed issuers and invite the lead independent non-executive director (if any) and the chairmen of the audit committee, remuneration committee, nomination committee and any other committees (as appropriate) to attend. In the absence of any committee chairman, the chairman of the board should invite another member of the committee or failing this their duly appointed delegate, to attend. These persons should be available to answer relevant questions at the annual general meeting. At the annual general meeting (the “AGM”) of the Company held on 9 June 2026, Mr. KONG Fanxing (Chairman of the Board), Mr. XU Min (Chairman of the Audit Committee and member of the Environmental, Social and Governance Committee), Ms. JIN Jinping (Chairwoman of the Nomination Committee and the Remuneration Committee and member of the Audit Committee), Mr. SUM Siu Kei (Chairman of the Environmental, Social and Governance Committee and member of the Audit Committee), Mr. XU Huibin (member of the Nomination Committee), Mr. HE Ziming (member of the Environmental, Social and Governance Committee), Ms. GUO Lina (member of the Remuneration Committee) and Mr. LIU Jialin (lead independent non-executive Director and member of the Nomination Committee and the Remuneration Committee) were unable to attend due to other work commitments. In order to ensure the smooth holding of the AGM, Mr. ZHAN Jing (executive Director and chief executive officer) chaired the AGM, while Mr. TANG Li (executive Director and co-chief financial officer) attended the AGM, and answered questions where necessary. MODEL CODE FOR SECURITIES TRANSACTIONS The Company has adopted the Model Code as set out in Appendix C3 to the Listing Rules as its own code of conduct for its Directors and relevant employees regarding their dealings in the Company ’s securities. Specific enquiries have been made to all the Directors and the Directors have confirmed that they had complied with the Model Code throughout the six months ended 30 June 2026. INDEPENDENT NON-EXECUTIVE DIRECTORS During the period from 1 January 2026 to 30 June 2026, the Board has been in compliance with Rule 3.10(1) of the Listing Rules, which requires a listed company to maintain at least three independent non-executive directors on the board; with Rules 3.10(2) of the Listing Rules, which requires one of those independent non-executive directors to be specialized in accounting or relevant financial management; and with Rule 3.10A of the Listing Rules, which requires independent non-executive directors to represent at least one-third of the board. Be global for shared prosperity
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INTERIM REPORT56 CORPORATE GOVERNANCE AUDIT COMMITTEE The Company has established the Audit Committee in compliance with Rules 3.21 and 3.22 of the Listing Rules. The Audit Committee comprises three members, including Mr. XU Min, as Chairman, Mr. SUM Siu Kei and Ms. JIN Jinping. This interim report has been reviewed by the Audit Committee. The Audit Committee has reviewed, with the management and the external auditor, the condensed consolidated financial statements for the six months ended 30 June 2026 of the Group, including the accounting principles and practices adopted by the Group. Horizon Construction Development Limited · 2026 Interim Report
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57INTERIM REPORT OTHER INFORMATION IMPLEMENTATION OF DISTRIBUTION OF 2025 FINAL DIVIDEND According to the proposal in relation to dividend distribution, which was considered and passed at the AGM held on 9 June 2026, the Group has paid a dividend of HK$0.016 per share to shareholders whose names appeared on the register of members of the Company on 17 June 2026, thereby resulting in a total dividend payment amount of approximately HK$51,156,000. INTERIM DIVIDEND The Board does not recommend the payment of an interim dividend in respect of the six months ended 30 June 2026 (30 June 2025: Nil). PURCHASE, SALE OR REDEMPTION OF THE COMPANY ’S LISTED SECURITIES Neither the Company nor any of its subsidiaries has purchased, sold or redeemed any listed securities of the Company during the six months ended 30 June 2026. As of 30 June 2026, no treasury shares (as defined under the Listing Rules) were held by the Company. MEMORANDUM AND ARTICLES OF ASSOCIATION Shareholders have approved and the Company has adopted the fifth amended and restated memorandum and articles of association proposed at the AGM held on 9 June 2026, so that the memorandum and articles of association of the Company is in compliance with the latest legal and regulatory requirements, which include, among others, (i) enabling the serving of notices and documents by electronic means, the execution of proxy instruments and other documents of the Company by electronic means, the receipt of notices and documents by shareholders of the Company ( “Shareholders ”) via their publication on the Company ’s website or the website of The Stock Exchange of Hong Kong Limited, and giving instructions by Shareholders by electronic means in accordance with the amended articles; (ii) enabling any general meeting to be held physically, as a hybrid meeting (partially physical and partially electronic) or entirely by electronic means, and attendance, participation and voting by electronic means; (iii) enabling Shareholders to receive corporate action proceeds and the payment of subscription monies to Shareholders electronically; and (iv) making necessary and consequential updates to align the existing articles of the Company with the applicable laws of the Cayman Islands and the Listing Rules. For details of the fifth amended and restated memorandum and articles of association of the Company, please refer to the announcement of the Company dated 10 March 2026 and the circular of the Company dated 28 April 2026, respectively. CHANGES IN DIRECTORS ’ BIOGRAPHICAL DETAILS Since the publication of the 2025 annual report of the Company and as at the date of this report, there have been no changes to the Director ’s information as required to be disclosed pursuant to Rule 13.51B(1) of the Listing Rules. Be global for shared prosperity
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INTERIM REPORT58 INDEPENDENT REVIEW REPORT Ernst & Young 27/F, One Taikoo Place 979 King ’s Road Quarry Bay, Hong Kong ה ༸ 979 ࢭ27ᅽ Telཥ༑: +852 2846 9888 Faxෂॆ: +852 2868 4432 ey.com To the board of directors of Horizon Construction Development Limited (Incorporated in the Cayman Islands with limited liability) INTRODUCTION We have reviewed the interim financial information set out on pages 59 to 132, which comprises the condensed consolidated statement of financial position of Horizon Construction Development Limited (the “Company ”) and its subsidiaries (the “Group ”) as at 30 June 2026 and the related condensed consolidated statements of profit or loss, comprehensive income, changes in equity and cash flows for the six-month period then ended, and explanatory notes. The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited require the preparation of a report on interim financial information to be in compliance with the relevant provisions thereof and Hong Kong Accounting Standard 34 Interim Financial Reporting (“HKAS 34 ”) as issued by the Hong Kong Institute of Certified Public Accountants ( “HKICPA ”). The directors of the Company are responsible for the preparation and presentation of this interim financial information in accordance with HKAS 34. Our responsibility is to express a conclusion on this interim financial information based on our review. Our report is made solely to you, as a body, in accordance with our agreed terms of engagement, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report. SCOPE OF REVIEW We conducted our review in accordance with Hong Kong Standard on Review Engagements 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity as issued by the HKICPA. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Hong Kong Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. CONCLUSION Based on our review, nothing has come to our attention that causes us to believe that the interim financial information is not prepared, in all material respects, in accordance with HKAS 34. Ernst & Young Certified Public Accountants Hong Kong 4 August 2026 Horizon Construction Development Limited · 2026 Interim Report
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59INTERIM REPORT INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS For the six months ended 30 June 2026 For the six months ended 30 June 2026 2025 Notes RMB’000 RMB’000 (Unaudited) (Unaudited) REVENUE 5 4,024,060 4,350,062 Cost of sales 7 (2,903,598) (3,409,395) Gross profit 1,120,462 940,667 Other income and gains 6 97,469 104,327 Selling and distribution expenses 7 (206,319) (242,505) Administrative expenses 7 (560,076) (519,907) Expected credit losses ( “ECLs”) on financial and contract assets, net 7 (63,842) 186,877 Other expenses 7 (15,408) (18,113) Finance costs 8 (319,205) (401,070) PROFIT BEFORE TAX 7 53,081 50,276 Income tax expense 9 (16,479) (14,786) PROFIT FOR THE PERIOD 36,602 35,490 Attributable to: Owners of the parent 36,602 35,490 EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT 11 RMB RMB Basic Earnings per share 0.01 0.01 Diluted Earnings per share 0.01 0.01 Be global for shared prosperity
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INTERIM REPORT60 INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the six months ended 30 June 2026 For the six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) PROFIT FOR THE PERIOD 36,602 35,490 Other comprehensive income that may be reclassified to profit or loss in subsequent periods: Cash flow hedges: Effective portion of changes in fair value of hedging instruments arising during the period 6,392 (1,054) Offset of foreign exchange (losses)/gains (5,558) 2,884 Income tax effect – (193) Exchange differences: Exchange differences on translation of foreign operations (269,324) (33,983) Net other comprehensive income that may be reclassified to profit or loss in subsequent periods (268,490) (32,346) OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF TAX (268,490) (32,346) TOTAL COMPREHENSIVE INCOME FOR THE PERIOD (231,888) 3,144 Attributable to: Owners of the parent (231,888) 3,144 Horizon Construction Development Limited · 2026 Interim Report
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61INTERIM REPORT INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30 June 2026 30 June 2026 31 December 2025 Notes RMB’000 RMB’000 (Unaudited) (Audited) NON-CURRENT ASSETS Property, plant and equipment 12 20,901,421 21,583,432 Right-of-use assets 13(a) 818,567 904,417 Goodwill 14 173,979 173,979 Other intangible assets 15 5,296 5,511 Investments in associates 16 78,413 653 Prepayments, other receivables and other assets 19 670,751 663,097 Deferred tax assets 17 457,565 386,667 Total non-current assets 23,105,992 23,717,756 CURRENT ASSETS Inventories 18 414,859 405,931 Trade receivables 20 7,136,349 6,836,100 Contract assets 21 580,255 660,263 Prepayments, other receivables and other assets 19 2,196,065 2,076,258 Debt investments at fair value through other comprehensive income 22 696,359 1,061,829 Restricted bank balances 23 243,476 88,205 Cash and cash equivalents 23 1,428,649 1,522,005 Total current assets 12,696,012 12,650,591 CURRENT LIABILITIES Trade and bills payables 24 3,148,545 2,924,244 Other payables and accruals 25 825,364 970,097 Derivative financial instruments 10,906 17,298 Interest-bearing bank and other borrowings 26 7,386,690 7,294,708 Lease liabilities 13(b) 236,514 225,534 Tax payables 38,305 96,939 Total current liabilities 11,646,324 11,528,820 NET CURRENT ASSETS 1,049,688 1,121,771 TOTAL ASSETS LESS CURRENT LIABILITIES 24,155,680 24,839,527 Be global for shared prosperity
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INTERIM REPORT62 INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30 June 2026 30 June 2026 31 December 2025 Notes RMB’000 RMB’000 (Unaudited) (Audited) NON-CURRENT LIABILITIES Other payables and accruals 25 34,750 24,930 Interest-bearing bank and other borrowings 26 12,580,782 13,033,497 Lease liabilities 13(b) 344,831 382,318 Financial liabilities at fair value through profit or loss 73,937 73,937 Deferred tax liabilities 17 61,598 – Total non-current liabilities 13,095,898 13,514,682 Net assets 11,059,782 11,324,845 EQUITY Equity attributable to owners of the parent Share capital 27 421 421 Reserves 30 11,059,361 11,324,424 Total equity 11,059,782 11,324,845 Zhan Jing Tang Li Shan Jianlin Director Director Co-Chief Financial Officer Horizon Construction Development Limited · 2026 Interim Report
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63INTERIM REPORT INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the six months ended 30 June 2026 Attributable to owners of the parent Share capital Share premium* Merger reserve* Capital reserve* Shares held for the share award scheme* Share-based compensation reserve* Special reserve* Other comprehensive income* Retained profits* Total equity RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 (note 27) (note 30) (note 30) (note 30) (note 29) (note 30) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) At 31 December 2025 (Audited) 421 7,533,457 (29,862) 394,456 (87,486) 19,663 177,389 (155,547) 3,472,354 11,324,845 Profit for the period – – – – – – – – 36,602 36,602 Other comprehensive income for the period: Cash flow hedges, net of tax – – – – – – – 834 – 834 Exchange differences on translation of foreign operations – – – – – – – (269,324) – (269,324) Total comprehensive income for the period – – – – – – – (268,490) 36,602 (231,888) Dividends – – – – – – – – (43,614) (43,614) Recognition of equity-settled share-based payments – – – – – 10,439 – – – 10,439 Special reserve – safety fund appropriation – – – – – – 2,761 – (2,761) – At 30 June 2026 421 7,533,457 (29,862) 394,456 (87,486) 30,102 180,150 (424,037) 3,462,581 11,059,782 * These reserve accounts comprise the consolidated reserves of RMB11,059,361,000 in the interim condensed consolidated statement of financial position as at 30 June 2026. Be global for shared prosperity
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INTERIM REPORT64 INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the six months ended 30 June 2026 Attributable to owners of the parent Share capital Share premium* Merger reserve* Capital reserve* Shares held for the share award scheme* Share-based compensation reserve* Special reserve* Other comprehensive income* Retained profits* Total equity RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 (note 27) (note 30) (note 30) (note 30) (note 29) (note 30) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) At 31 December 2024 (Audited) 421 7,533,457 (29,862) 394,456 (89,455) 12,254 165,120 3,813 3,468,146 11,458,350 Profit for the period – – – – – – – – 35,490 35,490 Other comprehensive income for the period: Cash flow hedges, net of tax – – – – – – – 1,637 – 1,637 Exchange differences on translation of foreign operations – – – – – – – (33,983) – (33,983) Total comprehensive income for the period – – – – – – – (32,346) 35,490 3,144 2024 annual dividend – – – – – – – – (132,874) (132,874) Reverse of equity-settled share-based payments – – – – – (874) – – – (874) Special reserve – safety fund appropriation – – – – – – 8,102 – (8,102) – At 30 June 2025 421 7,533,457 (29,862) 394,456 (89,455) 11,380 173,222 (28,533) 3,362,660 11,327,746 * These reserve accounts comprise the consolidated reserves of RMB11,327,325,000 in the interim condensed consolidated statement of financial position as at 30 June 2025. Horizon Construction Development Limited · 2026 Interim Report
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65INTERIM REPORT INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS For the six months ended 30 June 2026 For the six months ended 30 June 2026 2025 Notes RMB’000 RMB’000 (Unaudited) (Unaudited) CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax: 53,081 50,276 Adjustments for: Finance costs 8 319,205 401,070 Loss/(gain) on financial assets at fair value through profit or loss 6,7 28 (320) Gain on disposal of items of property, plant and equipment and early termination of right-of-use assets 6 (9,327) (6,448) Loss on scrapped and physical items of property, plant and equipment 7 319 80 ECLs on financial and contract assets, net 7 63,842 (186,877) Impairment of repossessed assets 7 – 4,081 Depreciation of property, plant and equipment 12 1,392,710 1,315,971 Depreciation of right-of-use assets 13(a) 139,221 204,789 Amortisation of other intangible assets 15 328 455 Deferred revenue – (9,822) Equity-settled share-based payment expense 7 10,439 (874) Provision 7 2,461 – Exchange (gains)/losses 6, 7 (6,031) 5,624 1,966,276 1,778,005 Decrease in inventories 44,565 174,790 Increase in trade receivables (374,257) (92,651) Decrease/(increase) in debt investments at fair value through other comprehensive income 193,816 (276,838) Decrease in prepayments, other receivables and other assets 30,273 287,875 Decrease in contract assets 43,772 61,451 Increase in restricted deposits (155,271) – (Decrease)/increase in trade and bills payables (160,093) 110,625 Decrease in other payables and accruals (156,872) (99,492) Cash generated from operations 1,432,209 1,943,765 Tax paid (110,007) (163,399) Net cash flows generated from operating activities 1,322,202 1,780,366 Be global for shared prosperity
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INTERIM REPORT66 INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS For the six months ended 30 June 2026 For the six months ended 30 June 2026 2025 Notes RMB’000 RMB’000 (Unaudited) (Unaudited) Net cash flows generated from operating activities 1,322,202 1,780,366 CASH FLOWS FROM INVESTING ACTIVITIES Purchases of items of property, plant and equipment (529,155) (658,328) Proceeds from disposal of items of property, plant and equipment 22,263 6,374 Additions to other intangible assets (113) – Investment in associates (77,760) (380) Acquisition of a subsidiary, net of cash acquired – (209,546) Net cash received for investments – 320 Net cash flows used in investing activities (584,765) (861,560) CASH FLOWS FROM FINANCING ACTIVITIES New bank and other borrowings 31 5,242,969 4,057,102 Dividends paid – (2,411) Interest paid 31 (315,742) (397,235) Deposits paid (12,540) 55,005 Repayment of bank and other borrowings 31 (5,609,261) (3,780,975) Principal portion of lease payments, net 31 (125,430) (160,977) Placement of restricted deposits – (290,101) Net cash flows used in financing activities (820,004) (519,592) NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS (82,567) 399,214 Cash and cash equivalents at the beginning of period 1,522,005 1,783,418 Effect of foreign exchange rate changes, net (10,789) (6,052) CASH AND CASH EQUIVALENTS AT THE END OF PERIOD 23 1,428,649 2,176,580 Horizon Construction Development Limited · 2026 Interim Report
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67INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 1. CORPORATE INFORMATION Horizon Construction Development Limited (the “Company ”) was incorporated in the Cayman Islands on 28 September 2020 as an exempted company with limited liability under the Companies Law Chapter 22 of the Cayman Islands. The registered address of the Company is P.O. Box 31119 Grand Pavilion, Hibiscus Way, 802 West Bay Road, Grand Cayman, KY1-1205 Cayman Islands. The Company is an investment holding company. During the reporting period, the Company and its subsidiaries (the “Group”) were principally engaged in the provision of the following services: (i) Operating lease services, including operational leasing of aerial work platforms, turnover materials and mould bases; (ii) Engineering and technical services, including construction and related services, electric power supply services, equipment repair and maintenance services and logistics services; and (iii) Asset management and other services, including asset management services (mainly referring to subleasing services and related maintenance services) and sale of goods (mainly referring to the sale of new equipment, second-hand equipment and materials). The immediate holding company of the Company is Far East Horizon Limited (the “Controlling Shareholder ”). 2. BASIS OF PREPARATION The interim condensed consolidated financial information for the six months ended 30 June 2026 has been prepared in accordance with HKAS 34 Interim Financial Reporting . The Group has prepared the financial statements on the basis that it will continue to operate as a going concern. The directors consider that there are no material uncertainties that may cast significant doubt over this assumption. They have formed a judgement that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, and not less than 12 months from the end of the reporting period. The interim condensed consolidated financial information does not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group ’s annual consolidated financial statements for the year ended 31 December 2025. The interim condensed consolidated financial information is presented in Renminbi ( “RMB”) and all values are rounded to the nearest thousand ( “RMB’000”) except when otherwise indicated. Be global for shared prosperity
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INTERIM REPORT68 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 3. CHANGES IN ACCOUNTING POLICIES The accounting policies adopted in the preparation of the interim condensed consolidated financial information are consistent with those applied in the preparation of the Group ’s annual consolidated financial statements for the year ended 31 December 2025, except for the adoption of the following amended HKFRS Accounting Standards for the first time for the current period ’s financial information. Amendments to HKFRS 9 and HKFRS 7 Amendments to the Classification and Measurement of Financial Instruments Amendments to HKFRS 9 and HKFRS 7 Contracts Referencing Nature-dependent Electricity Annual Improvements to HKFRS Accounting Standards – Volume 11 Amendments to HKFRS 1, HKFRS 7, HKFRS 9, HKFRS 10 and HKAS 7 The nature and impact of the amended HKFRS Accounting Standards are described below: (a) Amendments to HKFRS 9 and HKFRS 7 Amendments to the Classification and Measurement of Financial Instruments clarify that a financial asset is derecognised when the entity ’s rights to the contractual cash flows expire or are transferred, while a financial liability is derecognised on the settlement date. The amendments introduce an accounting policy option to derecognise a financial liability that is settled through an electronic payment system before the settlement date if specified criteria are met. The amendments clarify how to assess the contractual cash flow characteristics of financial assets with environmental, social and governance and other similar contingent features. Moreover, the amendments clarify the requirements for classifying financial assets with non-recourse features and contractually linked instruments. The amendments also include additional disclosures for investments in equity instruments designated at fair value through other comprehensive income and financial instruments with contingent features. Since the Group ’s accounting policy for the derecognition of financial assets and liabilities in prior years aligned with the amendments and the Group did not have the financial assets that were addressed by the amendments, the amendments did not have any impact on the interim condensed consolidated financial information. (b) Amendments to HKFRS 9 and HKFRS 7 Contracts Referencing Nature-dependent Electricity clarify the application of the “own-use ” requirements for in-scope contracts and amend the designation requirements for a hedged item in a cash flow hedging relationship for in-scope contracts. The amendments also include additional disclosures that enable users of financial statements to understand the effects these contracts have on an entity ’s financial performance and future cash flows. As the Group did not have any contracts that are in the scope of the amendments, the amendments did not have any impact on the interim condensed consolidated financial information. (c) Annual Improvements to HKFRS Accounting Standards – Volume 11 set out narrow scope amendments to HKFRS 1, HKFRS 7 (and the accompanying Guidance on implementing HKFRS 7 ), HKFRS 9, HKFRS 10 and HKAS 7. The amendments include clarifications, simplifications, corrections or changes to improve consistency in the corresponding HKFRS Accounting Standards. The amendments did not have any impact on the interim condensed consolidated financial information. Horizon Construction Development Limited · 2026 Interim Report
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69INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 4. OPERATING SEGMENT INFORMATION For management purposes, the Group is organised into business units based on their products and services and has three reportable operating segments as follows: (i) Operating lease services: Leasing of equipment and materials to customers and generating revenue mainly from rental fees payable by customers. The equipment and materials remain the property of the Group and are leased out to different customers with same or similar requirements; (ii) Engineering and technical services: Provision of construction services, electric power supply services, equipment repair and maintenance services and logistics services, and related value-added services, and generating revenue mainly from service fees charged to customers; and (iii) Asset management and other services: Subleasing and sale of equipment and materials. Management monitors the results of the Group ’s operating segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on reportable segment profit, which is a measure of adjusted profit before tax. The adjusted profit before tax is measured consistently with the Group ’s profit before tax except that other income and gains (other than gain on disposal of items of property, plant and equipment and early termination of right-of-use assets), non-financial lease-related finance costs, ECLs of other receivables, as well as other expenses (other than loss on scrapped and physical items of property, plant and equipment). Be global for shared prosperity
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INTERIM REPORT70 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 4. OPERATING SEGMENT INFORMATION (continued) Segment assets exclude investment in associates, deferred tax assets, derivative financial instruments, restricted bank balances, cash and cash equivalents as well as other receivables and other assets. Segment liabilities exclude other payables and accruals (other than lease deposits, salary and welfare payables, advances from customers, contract liabilities and dividend payables), interest-bearing bank and other borrowings, tax payables, derivative financial instruments, deferred tax liabilities, financial liabilities at fair value through profit or loss and deferred revenue. As at and for the six months ended 30 June 2026 Operating lease services Engineering and technical services Asset management and other services Total RMB’000 RMB’000 RMB’000 RMB’000 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Segment revenue (note 5) Sales to external customers 2,636,011 769,486 618,563 4,024,060 Intersegment sales – – – – Revenue 2,636,011 769,486 618,563 4,024,060 Segment results 394,140 (28,338) (2,629) 363,173 Reconciliation: Unallocated other income and gains 10,721 Unallocated other expenses (11,903) Unallocated finance costs (308,446) Unallocated ECLs (464) Profit before tax 53,081 Horizon Construction Development Limited · 2026 Interim Report
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71INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 4. OPERATING SEGMENT INFORMATION (continued) As at and for the six months ended 30 June 2026 (continued) Operating lease services Engineering and technical services Asset management and other services Total RMB’000 RMB’000 RMB’000 RMB’000 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Segment assets 24,123,187 6,543,257 641,830 31,308,274 Reconciliation: Corporate and other unallocated assets 4,493,730 Total assets 35,802,004 Segment liabilities 3,292,551 861,059 61,736 4,215,346 Reconciliation: Corporate and other unallocated liabilities 20,526,876 Total liabilities 24,742,222 Other segment information Impairment losses reversed in profit or loss, net 19,777 41,793 1,808 63,378 Unallocated impairment losses of financial and contract assets 464 Unallocated impairment losses of repossessed assets – Total impairment losses reversed in profit or loss, net 63,842 Depreciation and amortisation 1,229,048 303,211 – 1,532,259 Capital expenditure* 771,380 190,302 – 961,682 Be global for shared prosperity
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INTERIM REPORT72 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 4. OPERATING SEGMENT INFORMATION (continued) As at and for the six months ended 30 June 2025 Operating lease services Engineering and technical services Asset management and other services Total RMB’000 RMB’000 RMB’000 RMB’000 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Segment revenue (note 5) Sales to external customers 2,265,244 1,138,882 945,936 4,350,062 Intersegment sales – – – – Revenue 2,265,244 1,138,882 945,936 4,350,062 Segment results 326,732 19,909 14,916 361,557 Reconciliation: Unallocated other income and gains 97,879 Unallocated other expenses (17,251) Unallocated finance costs (388,992) Unallocated ECLs (2,917) Profit before tax 50,276 Segment assets 20,444,215 9,188,168 1,437,885 31,070,268 Reconciliation: Corporate and other unallocated assets 5,511,088 Total assets 36,581,356 Segment liabilities 2,273,083 1,071,964 64,013 3,409,060 Reconciliation: Corporate and other unallocated liabilities 21,844,550 Total liabilities 25,253,610 Other segment information Impairment losses reversed in profit or loss, net (106,494) (49,798) (33,502) (189,794) Unallocated impairment losses of financial and contract assets 2,917 Unallocated impairment losses of repossessed assets 4,081 Total impairment losses reversed in profit or loss, net (182,796) Depreciation and amortisation 1,064,535 456,680 – 1,521,215 Capital expenditure* 577,201 247,616 – 824,817 * Capital expenditure consists of additions to property, plant and equipment, and other intangible assets during the period. Horizon Construction Development Limited · 2026 Interim Report
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73INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 4. OPERATING SEGMENT INFORMATION (continued) Geographical information For the six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Revenue from external customers Chinese Mainland 3,063,673 3,720,938 Outside Chinese Mainland 960,387 629,124 Total 4,024,060 4,350,062 The revenue information above is based on the locations of the customers. Revenue from outside the Chinese Mainland is mainly generated from Hong Kong, Southeast Asia and the Middle East markets. 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Total operating assets Chinese Mainland 25,184,054 26,354,769 Outside Chinese Mainland 6,124,220 5,849,427 Total 31,308,274 32,204,196 Information about major customers Total operating revenue from sales to the five largest customers accounted for 11% of the Group ’s revenue for the period ended 30 June 2026 (30 June 2025: 11%). Be global for shared prosperity
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INTERIM REPORT74 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 5. REVENUE An analysis of the revenue is as follows: For the six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Revenue from operating lease income Operating lease services 2,636,011 2,265,244 Subleasing 340,817 660,842 Subtotal 2,976,828 2,926,086 Revenue from contracts with customers 1,047,232 1,423,976 Total 4,024,060 4,350,062 Horizon Construction Development Limited · 2026 Interim Report
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75INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 5. REVENUE (continued) Revenue from contracts with customers: (a) Disaggregated revenue information: For the six months ended 30 June 2026 Segments Engineering and technical services Asset management and other services Total RMB’000 RMB’000 RMB’000 (Unaudited) (Unaudited) (Unaudited) Type of goods or services Engineering and technical services 769,486 – 769,486 Sale of goods – 277,746 277,746 Total 769,486 277,746 1,047,232 Geographical markets Chinese Mainland 712,450 240,781 953,231 Outside Chinese Mainland 57,036 36,965 94,001 Total 769,486 277,746 1,047,232 Timing of revenue recognition Goods transferred at a point in time – 277,746 277,746 Services transferred over time 769,486 – 769,486 Total 769,486 277,746 1,047,232 Be global for shared prosperity
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INTERIM REPORT76 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 5. REVENUE (continued) Revenue from contracts with customers: (continued) (a) Disaggregated revenue information: (continued) For the six months ended 30 June 2025 Segments Engineering and technical services Asset management and other services Total RMB’000 RMB’000 RMB’000 (Unaudited) (Unaudited) (Unaudited) Type of goods or services Engineering and technical services 1,138,882 – 1,138,882 Sale of goods – 285,094 285,094 Total 1,138,882 285,094 1,423,976 Geographical markets Chinese Mainland 1,093,908 276,086 1,369,994 Outside Chinese Mainland 44,974 9,008 53,982 Total 1,138,882 285,094 1,423,976 Timing of revenue recognition Goods transferred at a point in time – 285,094 285,094 Services transferred over time 1,138,882 – 1,138,882 Total 1,138,882 285,094 1,423,976 Horizon Construction Development Limited · 2026 Interim Report
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77INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 5. REVENUE (continued) Revenue from contracts with customers: (continued) (a) Disaggregated revenue information: (continued) The following table shows the amounts of revenue recognised in the period that were included in the contract liabilities at the beginning of the respective period: For the six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Revenue recognised that was included in contract liabilities at the beginning of the period: Engineering and technical services 50,151 30,840 Sale of goods 17,167 30,178 Total 67,318 61,018 Be global for shared prosperity
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INTERIM REPORT78 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 5. REVENUE (continued) Revenue from contracts with customers: (continued) (b) Performance obligations Information about the Group ’s performance obligations is summarised below: Sale of goods The performance obligation is satisfied upon delivery of the goods. Engineering and technical services The performance obligation is satisfied over time as services are rendered. A certain percentage of payment is retained by customers until the end of the retention period as the Group ’s entitlement to the final payment is conditional on the satisfaction of the service quality by the customers over a certain period as stipulated in the contracts. The amounts of transaction prices allocated to the remaining performance obligations (unsatisfied or partially unsatisfied) as at the end of the reporting period are as follows: 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Amounts expected to be recognised as revenue: Within one year 685,295 453,615 After one year 293,698 194,407 Total 978,993 648,022 The amounts of transaction prices allocated to the remaining performance obligations which are expected to be recognised as revenue after one year are related to engineering and technical services, of which the performance obligations are to be satisfied within three years. The amounts disclosed above do not include variable consideration which is constrained. Horizon Construction Development Limited · 2026 Interim Report
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79INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 6. OTHER INCOME AND GAINS For the six months ended 30 June 2026 2025 Note RMB’000 RMB’000 (Unaudited) (Unaudited) Other income Government grants (a) 77,421 83,250 Bank interest income 1,336 3,923 Total other income 78,757 87,173 Other gains Gain on disposal of items of property, plant and equipment and early termination of right-of-use assets 9,327 6,448 Exchange gains 6,031 – Gain on financial assets at fair value through profit or loss – 320 Others 3,354 10,386 Total other gains 18,712 17,154 Total other income and gains 97,469 104,327 Note: (a) Government grants Government grants have been received from local government authorities as subsidies to the Group. In the opinion of management, there were no unfulfilled conditions or contingencies relating to these grants. For the six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Government special subsidies 77,421 83,250 Be global for shared prosperity
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INTERIM REPORT80 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 7. PROFIT BEFORE TAX The Group ’s profit before tax is arrived at after charging/(crediting): For the six months ended 30 June 2026 2025 Notes RMB’000 RMB’000 (Unaudited) (Unaudited) Cost of operating lease services 1,781,125 1,644,048 Cost of engineering and technical services provided 624,544 967,475 Cost of asset management and other services provided 497,929 797,872 Depreciation of property, plant and equipment (a) 12 44,262 31,737 Depreciation of right-of-use assets (b) 13(a) 41,793 35,354 Amortisation of intangible assets 15 328 455 Rental expenses 13(c) 40,861 37,157 Auditor ’s remuneration 2,000 2,000 Employee benefit expense (including directors ’ and chief executive ’s remuneration) Wages and salaries 223,137 233,466 Pension scheme contributions 26,132 25,813 Equity-settled share-based payment expense 10,439 (874) Other employee benefits 44,563 52,070 ECLs on financial and contract assets: ECLs on financial assets included in prepayments, other receivables and other assets 19 464 2,917 ECLs on trade receivables 20 59,968 (157,924) ECLs on contract assets 21 36,236 (5,105) ECLs on debt investments at fair value through other comprehensive income 22 (32,826) (26,765) Impairment of repossessed assets – 4,081 Research and development expenses: Current period expenditure 94,937 106,442 Business travelling and transportation expenses 77,054 88,464 Horizon Construction Development Limited · 2026 Interim Report
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81INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 For the six months ended 30 June 2026 2025 Notes RMB’000 RMB’000 (Unaudited) (Unaudited) Taxes and surcharges 49,369 31,279 Office expenses 23,980 11,540 Property management service expenses 22,790 16,273 Information expenses 14,152 17,682 Consultancy fees 13,694 11,051 Litigation expenses 12,305 28,573 Commission expenses 5,742 10,255 Entertainment expenses 3,752 8,292 Provision 2,461 – Advertising and promotional expenses 1,736 2,780 Loss on scrapped and physical items of property, plant and equipment 319 80 Exchange losses – 5,624 Others 25,997 20,931 (a) Besides the depreciation as mentioned above, the depreciation of property, plant and equipment amounting to RMB1,348,448,000 for the six months ended 30 June 2026 was included in cost of sales and research and development expenses (30 June 2025: RMB1,284,234,000). (b) Besides the depreciation as mentioned above, the depreciation of right-of-use assets amounting to RMB97,428,000 for the six months ended 30 June 2026 was included in cost of sales (30 June 2025: RMB169,435,000). 7. PROFIT BEFORE TAX (continued) The Group ’s profit before tax is arrived at after charging/(crediting): (continued) Be global for shared prosperity
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INTERIM REPORT82 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 8. FINANCE COSTS An analysis of finance costs is as follows: For the six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Interest on interest-bearing bank and other borrowings 308,446 388,992 Interest on lease liabilities (note 13(c)) 10,759 12,078 Total 319,205 401,070 9. INCOME TAX For the six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Current Charge for the period 25,779 62,566 Deferred tax (note 17) (9,300) (47,780) Total 16,479 14,786 The Group is subject to income tax on an entity basis on profit arising in or derived from the jurisdictions in which members of the Group are domiciled and operate. Pursuant to the rules and regulations of the Cayman Islands, the Company and the Group’s subsidiaries incorporated in the Cayman Islands are not subject to any income tax. According to applicable tax regulations prevailing in the PRC, dividends distributed by a company established in the Chinese Mainland to a foreign investor with respect to profit derived after 1 January 2008 are generally subject to a 10% withholding tax. If a foreign investor is incorporated in Hong Kong, under the double taxation arrangement between the Chinese Mainland and Hong Kong, the relevant withholding tax rate applicable to such foreign investor will be reduced from 10% to 5% subject to the fulfilment of certain conditions. Horizon Construction Development Limited · 2026 Interim Report
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83INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 9. INCOME TAX (continued) In the opinion of the directors of the Company, the Group ’s fund will be retained in the Chinese Mainland for the expansion of the Group ’s operation, so it is not probable that these subsidiaries will distribute such earnings in the foreseeable future. As at 30 June 2026, the aggregate amount of unrecognised deferred tax liabilities (i.e., withholding taxes relating to such temporary differences) was approximately RMB195,304,000 (30 June 2025: RMB179,237,000). Dividends distributed from certain jurisdictions in which the Group ’s entities operate are also subject to withholding tax at respective applicable tax rates. The provision for the Chinese Mainland current income tax was based on a statutory rate of 25% of the taxable profits for the period as determined in accordance with the PRC Income Tax Law and the respective regulations. Subsidiaries of the Group operating in the Chinese Mainland were subject to the PRC corporate income tax with a tax rate of 25% for the period except for the following subsidiaries: Company name Corporate income tax rate Shanghai Horizon Equipment & Engineering Co., Ltd. 15% Guangzhou Hongtu Equipment & Engineering Co., Ltd. 15% Shanghai Horizon Equipment & Engineering Co., Ltd. was accredited as High and New Technology Enterprise (the “HNTE”) since 2015, while Guangzhou Hongtu Equipment & Engineering Co., Ltd. was accredited as HNTE since 2020, and both of them were entitled to a preferential PRC corporate income tax rate of 15% thereafter. The HNTE certificates of Shanghai Horizon Equipment & Engineering Co., Ltd. and Guangzhou Hongtu Equipment & Engineering Co., Ltd. need to be renewed every three years in order to enable to enjoy the reduced tax rate of 15%. Shanghai Horizon Equipment & Engineering Co., Ltd. was entitled to a tax rate of 15% till 26 December 2027 and is expected to continue to enjoy this thereafter. Guangzhou Hongtu Equipment & Engineering Co., Ltd. was entitled to a tax rate of 15% till 28 December 2026 and is expected to continue to enjoy this thereafter. Be global for shared prosperity
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INTERIM REPORT84 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 9. INCOME TAX (continued) A reconciliation of the tax expense applicable to profit before tax at the statutory tax rate for the jurisdiction in which the Company and the majority of its subsidiaries are domiciled and/or operate to the tax expense at the effective tax rate for the period are as follows: For the six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Profit before tax 53,081 50,276 Tax at the Income Tax rate of 25% 13,270 12,569 Effects of different tax rates applicable to different subsidiaries of the Group (8,615) (10,297) Effects of preferential tax benefits to subsidiaries incorporated in the Chinese Mainland (6,881) (17,388) Expenses not deductible for tax 1,352 3,550 Adjustment on current income tax in respect of prior periods 3,937 4,662 Utilisation of previously unrecognised tax losses and temporary differences (476) (423) Unrecognised tax losses and temporary differences 13,892 22,113 Total tax charge at the Group ’s effective rate 16,479 14,786 Pillar Two income taxes The Group is within the scope of Pillar Two model rules. The Group has assessed its potential exposure based on the information available regarding the financial performance of the Group in the current period. As such, it may not be entirely representative of future circumstances. Based on the assessment, the Group should benefit from the transitional safe harbour for all of the jurisdictions in which the Group operates. Therefore, the Group does not expect potential exposure to Pillar Two “top-up ” taxes. 10. DIVIDENDS No interim dividend was declared by the board of directors ( “The Board ”) for the six months ended 30 June 2026 (31 December 2025: HKD0.016 per share). The final dividend of HKD0.016 per share for the year ended 31 December 2025 was paid on Thursday, 9 July 2026. Horizon Construction Development Limited · 2026 Interim Report
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85INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 11. EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT The calculation of the basic earnings per share amount is based on the consolidated profit for the period attributable to ordinary equity holders of the parent, and the weighted average number of ordinary shares of 3,134,748,000 outstanding during the period (30 June 2025: 3,133,375,000). The calculation of the diluted earnings per share amount is based on the consolidated profit for the period attributable to ordinary equity holders of the parent, adjusted to reflect the effects as if the dilutive potential ordinary shares do not exist at the beginning of the period. The weighted average number of ordinary shares used in the calculation is the number of ordinary shares outstanding during the period, as used in the basic earnings per share calculation, and the weighted average number of ordinary shares assumed to have been issued at no consideration on the deemed conversion of all dilutive potential ordinary shares into ordinary shares. The calculations of basic and diluted earnings per share are based on: For the six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Earnings Profit attributable to ordinary equity holders of the parent, used in the basic earnings per share calculation 36,602 35,490 Number of shares 2026 2025 (Unaudited) (Unaudited) Shares Weighted average number of ordinary shares outstanding during the period, used in the basic earnings per share calculation 3,134,748,000* 3,133,375,000 Effect of dilution – weighted average number of ordinary shares: Share options –** – Weighted average number of ordinary shares for diluted earnings per share 3,134,748,000 3,133,375,000 * The weighted average number of shares was after taking into account the effect of shares held for the share award scheme. ** The details of the share option scheme are disclosed in note 28 to the interim condensed consolidated financial information. As the exercise price of the share options was higher than the average market price of the Company ’s share during the period, no adjustment has been made to the diluted earnings per share as of 30 June 2026. Be global for shared prosperity
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INTERIM REPORT86 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 12. PROPERTY, PLANT AND EQUIPMENT As at 30 June 2026 Buildings Leasehold improvements Equipment, materials and moulds for leasing and services Equipment, materials and moulds for own use Office and other equipment Motor vehicles Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) At 1 January 2026: Cost 741,201 136,383 30,679,558 54,874 80,167 181,158 31,873,341 Accumulated depreciation and impairment (248,277) (105,356) (9,745,068) (7,631) (50,774) (132,803) (10,289,909) Net carrying amount 492,924 31,027 20,934,490 47,243 29,393 48,355 21,583,432 At 1 January 2026, net of accumulated depreciation and impairment 492,924 31,027 20,934,490 47,243 29,393 48,355 21,583,432 Additions – 7,770 940,662 2,892 4,122 6,123 961,569 Disposals – – (62,458) (610) (130) (54) (63,252) Depreciation provided during the period (17,414) (19,220) (1,344,816) (395) (4,770) (6,095) (1,392,710) Exchange realignment – – (186,559) 179 (295) (943) (187,618) At 30 June 2026, net of accumulated depreciation and impairment 475,510 19,577 20,281,319 49,309 28,320 47,386 20,901,421 At 30 June 2026: Cost 741,202 144,153 31,052,673 56,659 81,555 184,269 32,260,511 Accumulated depreciation and impairment (265,692) (124,576) (10,771,354) (7,350) (53,235) (136,883) (11,359,090) Net carrying amount 475,510 19,577 20,281,319 49,309 28,320 47,386 20,901,421 Horizon Construction Development Limited · 2026 Interim Report
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87INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 12. PROPERTY, PLANT AND EQUIPMENT (continued) As at 31 December 2025 Buildings Leasehold improvements Equipment, materials and moulds for leasing and services Equipment, materials and moulds for own use Office and other equipment Motor vehicles Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) At 1 January 2025: Cost 731,760 125,315 29,411,323 102,163 63,083 70,588 30,504,232 Accumulated depreciation and impairment (212,619) (90,970) (7,799,525) (48,394) (49,572) (57,749) (8,258,829) Net carrying amount 519,141 34,345 21,611,798 53,769 13,511 12,839 22,245,403 At 1 January 2025, net of accumulated depreciation and impairment 519,141 34,345 21,611,798 53,769 13,511 12,839 22,245,403 Additions 1,368 11,068 2,349,356 2,265 6,023 19,711 2,389,791 Acquisition of a subsidiary 12,115 – 125,466 – 16,393 28,079 182,053 Disposals (5,180) – (523,214) (7,093) (89) (1,332) (536,908) Depreciation provided during the year (35,132) (14,386) (2,656,643) (775) (6,353) (10,334) (2,723,623) Exchange realignment 612 – 27,727 (923) (92) (608) 26,716 At 31 December 2025, net of accumulated depreciation and impairment 492,924 31,027 20,934,490 47,243 29,393 48,355 21,583,432 At 31 December 2025: Cost 741,201 136,383 30,679,558 54,874 80,167 181,158 31,873,341 Accumulated depreciation and impairment (248,277) (105,356) (9,745,068) (7,631) (50,774) (132,803) (10,289,909) Net carrying amount 492,924 31,027 20,934,490 47,243 29,393 48,355 21,583,432 Be global for shared prosperity
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INTERIM REPORT88 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 12. PROPERTY, PLANT AND EQUIPMENT (continued) Certain of the Group ’s property, plant and equipment with a net carrying amount of RMB5,602,704,000 as at 30 June 2026 were pledged to secure other borrowings granted to the Group (31 December 2025: RMB6,820,439,000). Movement in provision for impairment of property, plant and equipment in the period is as follows: As at 30 June 2026 Equipment, materials and moulds for leasing and services RMB’000 (Unaudited) At 1 January 2026: 57,883 Disposals (487) At 30 June 2026 57,396 As at 31 December 2025 Equipment, materials and moulds for leasing and services RMB’000 (Audited) At 1 January 2025: 59,197 Disposals (1,314) At 31 December 2025 57,883 Measurement basis and major assumptions for determining the recoverable amount of the above asset groups are as follows: The recoverable amount is determined based on the higher of the net fair value of the cash-generating unit ( “CGU”) less costs to sell and the present value of the estimated future cash flows of the CGUs ( “VIU”). Horizon Construction Development Limited · 2026 Interim Report
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89INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 12. PROPERTY, PLANT AND EQUIPMENT (continued) The VIUs were calculated by discounting the estimated future cash flows based on the forecast rentals earned from the CGUs, which is determined based on management ’s best estimate. The cash flows over the forecast period had been determined based on historical rental arrangements such as rental income and occupancy rate. The estimated future cash flows were discounted to their present values using pre-tax rates of 10.5% as of 30 June 2026, which reflected the market assessments of the time value of money and the risks specific to the CGUs (31 December 2025: 10.5%). The calculation of the fair value less costs to sell was based on observable market prices for the equipment with similar conditions and incremental costs for disposing of the assets. 13. LEASES The Group as a lessee The Group has lease contracts for various items of leasehold land, offices, motor and equipment used in its operations. Lump sum payments were made upfront to acquire the leased land from the owners with lease periods of 50 years, and no ongoing payments will be made under the terms of these land leases. (a) Right-of-use assets: The carrying amounts of right-of-use assets and the movements during the period are as follows: As at 30 June 2026 Leasehold land Offices Motor Equipment Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) At 1 January 2026 171,988 99,607 2,841 629,981 904,417 Additions – 38,164 – 111,456 149,620 Depreciation charge (2,353) (40,111) – (96,757) (139,221) Disposal – (13,374) (2,841) (80,034) (96,249) At 30 June 2026 169,635 84,286 – 564,646 818,567 Be global for shared prosperity
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INTERIM REPORT90 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 13. LEASES (continued) The Group as a lessee (continued) (a) Right-of-use assets: (continued) As at 31 December 2025 Leasehold land Offices Motor Equipment Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 (Audited) (Audited) (Audited) (Audited) (Audited) At 1 January 2025 176,693 119,150 – 609,296 905,139 Additions – 65,853 – 528,834 594,687 Acquisition of a subsidiary – 2,163 2,961 55,264 60,388 Depreciation charge (4,705) (74,617) (120) (303,494) (382,936) Disposal – (12,942) – (259,919) (272,861) At 31 December 2025 171,988 99,607 2,841 629,981 904,417 As at 30 June 2026 and 31 December 2025, the Group has obtained all the land ownership certificates. At the end of the reporting period, no leasehold land of the Group was pledged as security for the Group ’s bank borrowings. Measurement basis and major assumptions for determining the recoverable amounts of the above equipment categorised in right-of-use assets of the Group are disclosed in note 12. Horizon Construction Development Limited · 2026 Interim Report
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91INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 13. LEASES (continued) The Group as a lessee (continued) (b) Lease liabilities: The carrying amounts of lease liabilities and the movements during the period are as follows: 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Carrying amount at the beginning of period 607,852 633,582 New leases 149,620 594,687 Additions as a result of acquisition of subsidiaries – 38,027 Accretion of interest recognised during the period (note 8) 10,759 32,285 Payments (125,430) (556,939) Disposal (61,456) (133,790) Carrying amount at the end of period 581,345 607,852 Analysed into: Current portion 236,514 225,534 Non-current portion 344,831 382,318 (c) The amounts recognised in profit or loss in relation to leases are as follows: For the six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Interest on lease liabilities (note 8) 10,759 12,078 Depreciation charge on right-of-use assets 139,221 204,789 Rent expensed directly to profit or loss 40,861 37,157 Cost of re-rent fees 220,989 251,652 Total amount recognised in profit or loss 411,830 505,676 (d) The total cash outflow for leases is disclosed in note 31 to the interim condensed consolidated financial information. Be global for shared prosperity
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INTERIM REPORT92 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 13. LEASES (continued) The Group as a lessor The Group mainly leases its equipment, materials and moulds in the Chinese Mainland under operating lease arrangements. The terms of the leases generally require the tenants to pay security deposits and provide for periodic rent adjustments according to the then prevailing market conditions. Rental income recognised by the Group amounted to RMB2,976,828,000 for the six months ended 30 June 2026, details of which are included in note 5 to the interim condensed consolidated financial information (30 June 2025: RMB2,926,086,000). At the end of the reporting period, the undiscounted lease payments receivable by the Group in future period under operating leases with its tenants are as follows: 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Within 1 year 4,529,076 4,877,608 After 1 year but within 2 years 670,597 688,276 After 2 years but within 3 years 31,575 49,067 Total 5,231,248 5,614,951 Horizon Construction Development Limited · 2026 Interim Report
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93INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 14. GOODWILL Reconciliation of the carrying amount of the Group ’s goodwill at the beginning and end of the reporting period is presented below: RMB’000 (Unaudited) Gross carrying amount At 1 January 2026 173,979 At 30 June 2026 173,979 Accumulated impairment losses At 1 January 2026 – Impairment losses recognised during the period – At 30 June 2026 – Net book value At 1 January 2026 173,979 At 30 June 2026 173,979 The goodwill arose from the acquisition of TH Tong Heng Machinery Sdn. Bhd., a Malaysia based leading company in equipment leasing, repairing and trading, on 30 May 2025. This acquisition aligns with the Group ’s strategic initiative to expand its market share in Malaysia ’s equipment leasing sector. The goodwill acquired through business combinations is allocated to acquired subsidiaries each as a CGU within the operating lease services for impairment testing. The recoverable amount of CGU within the operating lease services has been determined based on a value-in use calculation using cash flow projections based on financial budgets covering a five-year period and approved by senior management. The pre-tax discount rate applied to the cash flow projections is 15.8% (31 December 2025: 15.8%). The post-tax discount rate applied to the cash flow projections is 12.0% (31 December 2025: 12.0%). Assumptions were used in the value-in-use calculation of each CGU within the operating lease services for 30 June 2026. The following describes each key assumption on which management has based its cash flow projections to undertake impairment testing of goodwill. Be global for shared prosperity
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INTERIM REPORT94 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 14. GOODWILL (continued) Expected gross margin – the basis used to determine the value assigned to the expected gross margin is the gross margin achieved in the current period, adjusted for expected growth and other changes, and expected market development. Discount rate – the discount rate used reflects specific risks relating to the units. The values assigned to the key assumptions on market development of the operating lease services, and the discount rate is comparable to external information sources. 15. OTHER INTANGIBLE ASSETS 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Software At the beginning of period: Cost 12,787 12,787 Accumulated amortisation (7,276) (6,038) Net carrying amount 5,511 6,749 Carrying amount at the beginning of period: 5,511 6,749 Additions 113 – Amortisation provided during the period (note 7) (328) (1,238) Carrying amount at the end of period 5,296 5,511 At the end of period: Cost 12,900 12,787 Accumulated amortisation (7,604) (7,276) Net carrying amount 5,296 5,511 Horizon Construction Development Limited · 2026 Interim Report
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95INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 16. INVESTMENTS IN ASSOCIATES 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Share of net assets 78,413 653 The Group ’s associates are as follows: Name Registered share capital Place of registration and business Percentage of Principal activities Ownership interest Profit sharing CT HORIZON (THAILAND) CO., LTD. Thai Baht 10,000,000 Thailand 49 49 Rental, trade and repair of construction machinery and construction materials Jiaxing Hongbang Technology Services Co., Ltd. (ਕ ʮ̡)* RMB 2,000,000 PRC/Chinese Mainland 19 19 Technology intermediary and digital services Shanghai Hongzuo New Energy Technology Co., Ltd. (Ҧ ʮ̡) RMB 176,675,430 PRC/Chinese Mainland 25.6306 25.6306 Technology development, technical consulting, technology transfer, and technical services in the field of new energy technology, sales and installation of photovoltaic equipment, professional construction of environmental protection construction projects, import and export of goods and technology, and financial consulting * The Group has the power to participate in the financial and operational policy decisions of the investee and has a significant influence over it. Be global for shared prosperity
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INTERIM REPORT96 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 17. DEFERRED TAX The movements in deferred tax assets and liabilities during the period are as follows: Deferred tax assets As at 30 June 2026 Government special subsidy Provision for impairment losses Salaries and benefits payable Share- based payments Deductible tax loss Unrealised intra-group transaction Accrued interest expenses Lease liabilities Deferred tax asset arising from an interest rate swap Unrealised foreign exchange losses Others Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) At 31 December 2025 and 1 January 2026 – 232,899 8,491 5,377 152,104 33,237 20,682 79,581 – – 856 533,227 Deferred tax credited/ (charged) to profit or loss during the period (note 9) – 29,936 (3,343) 2,610 (22,407) (2,284) (11,941) (70,492) 1,815 – 444 (75,662) Gross deferred tax assets at 30 June 2026 – 262,835 5,148 7,987 129,697 30,953 8,741 9,089 1,815 – 1,300 457,565 As at 31 December 2025 Government special subsidy Provision for impairment losses Salaries and benefits payable Share- based payments Deductible tax loss Unrealised intra-group transaction Accrued interest expenses Lease liabilities Deferred tax asset arising from an interest rate swap Unrealised foreign exchange losses Others Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) At 31 December 2024 and 1 January 2025 1,448 245,682 27,088 1,689 57,119 33,237 25,183 105,149 260 513 856 498,224 Deferred tax credited/(charged) to profit or loss during the year (1,448) (12,783) (18,597) 3,688 94,985 – (4,501) (25,568) – (513) – 35,263 Deferred tax charged to other comprehensive income during the year – – – – – – – – (260) – – (260) Gross deferred tax assets at 31 December 2025 – 232,899 8,491 5,377 152,104 33,237 20,682 79,581 – – 856 533,227 Horizon Construction Development Limited · 2026 Interim Report
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97INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 17. DEFERRED TAX (continued) The movements in deferred tax assets and liabilities during the period are as follows: (continued) Deferred tax liabilities As at 30 June 2026 Right-of-use assets Property, plant and equipment and intangible assets Unrealised foreign exchange gains Withholding tax Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) At 31 December 2025 and 1 January 2026 93,846 52,714 – – 146,560 Deferred tax credited to profit or loss during the period (note 9) (79,663) (5,299) – – (84,962) Gross deferred tax liabilities at 30 June 2026 14,183 47,415 – – 61,598 As at 31 December 2025 Right-of-use assets Property, plant and equipment and intangible assets Unrealised foreign exchange gains Withholding tax Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 (Audited) (Audited) (Audited) (Audited) (Audited) At 31 December 2024 and 1 January 2025 119,597 3,259 2,560 10,000 135,416 Deferred tax charged/(credited) to profit or loss during the year (25,751) 22,148 (2,560) (10,000) (16,163) Acquisition of subsidiaries during the year – 27,307 – – 27,307 Gross deferred tax liabilities at 31 December 2025 93,846 52,714 – – 146,560 Be global for shared prosperity
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INTERIM REPORT98 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 17. DEFERRED TAX (continued) For presentation purposes, certain deferred tax assets and liabilities have been offset in the statement of financial position. The following is an analysis of the deferred tax balances of the Group for financial reporting purposes: 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Net deferred tax assets recognised in the consolidated statement of financial position 457,565 386,667 Net deferred tax liabilities recognised in the consolidated statement of financial position 61,598 – Tax losses arising in the Chinese Mainland will expire in five years for offsetting against future taxable profits. The Group did not recognise deferred tax assets in respect of unutilised tax losses of RMB342,247,000 as at 30 June 2026 (31 December 2025: RMB323,579,000). 18. INVENTORIES 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Raw materials 301,089 310,065 Work in progress 33,286 20,011 Finished goods 80,484 75,855 Total 414,859 405,931 For the six months ended 30 June 2026, no impairment loss on inventories was recognised as an expense (31 December 2025: Nil). At the end of the reporting period, no inventories of the Group were pledged as security for the Group ’s bank borrowings. Horizon Construction Development Limited · 2026 Interim Report
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99INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 19. PREPAYMENTS, OTHER RECEIVABLES AND OTHER ASSETS 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Current Tax recoverable 1,493,970 1,447,659 Prepayments 362,797 319,101 Deposits* 169,520 263,271 Other receivables 195,937 69,860 Due from related parties (note 35(c)) 6,114 8,207 2,228,338 2,108,098 ECLs (32,273) (31,840) Subtotal 2,196,065 2,076,258 Non-current Repossessed assets** 386,256 422,466 Deposits* 279,253 237,080 Others 5,456 3,734 670,965 663,280 ECLs (214) (183) Subtotal 670,751 663,097 Total 2,866,816 2,739,355 * As at 30 June 2026, current deposits of RMB86,780,000 were pledged for other borrowings granted to the Group (31 December 2025: RMB116,413,000), and non-current deposits of RMB18,300,000 were pledged for other borrowings granted to the Group (31 December 2025: RMB18,300,000). ** As at 30 June 2026, the carrying amount of repossessed assets was RMB386,256,000 (31 December 2025: RMB422,466,000), mainly comprising properties. Related allowance for impairment was RMB118,057,000 (31 December 2025: RMB118,057,000). The repossessed assets amounting to RMB32,302,000 (31 December 2025: RMB12,748,000) and RMB17,946,000 (31 December 2025: RMB24,522,000) were disposed of and settled by trade and bills payables for the six months ended 30 June 2026, respectively. The Group plans to dispose of the repossessed assets held at 30 June 2026 by auction, bidding or transfer. The application of the certificates of some properties with a carrying amount of RMB349,693,000 (31 December 2025: RMB370,631,000) is still in process and the directors of the Company believe there is no significant impact on the Group ’s financial statements. A credit loss analysis was performed at the end of the reporting period by considering the probability of default of comparable companies with published credit ratings. At the end of the reporting period, the ECLs of the financial assets included in prepayments, other receivables and other assets were measured based on the 12-month ECLs if they are not past due and there is no information indicating that the financial assets had a significant increase in credit risk since initial recognition. Otherwise, they were measured based on the lifetime ECLs. Be global for shared prosperity
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INTERIM REPORT100 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 19. PREPAYMENTS, OTHER RECEIVABLES AND OTHER ASSETS (continued) Movements in the credit loss for amounts due from related parties, other receivables, and rental and project deposits are as follows: 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) At the beginning of period 32,023 49,856 ECLs (note 7) 464 (17,833) At the end of period 32,487 32,023 20. TRADE RECEIVABLES 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Trade receivables 8,301,056 7,931,912 ECLs (1,164,707) (1,095,812) Net carrying amount 7,136,349 6,836,100 Trade receivables mainly represent rentals and services receivables from tenants and engineering services. The Group seeks to maintain strict control over its outstanding receivables. Overdue balances are reviewed regularly by management. In view of the aforementioned and the fact that the Group ’s trade receivables relate to a large number of diversified individual customers, there is no significant concentration of credit risk. The Group does not hold any other credit enhancements over its trade receivable balances. Trade receivables are non-interest-bearing. As at 30 June 2026, no trade receivables (31 December 2025: RMB700,000,000) were factored out but were not derecognised. In the opinion of the directors, the Group has retained the substantial risks and rewards, which include default risks relating to such factoring trade receivables, and accordingly, it continued to recognise the full carrying amounts of the trade receivables and the factoring amount was recognised as borrowings. Horizon Construction Development Limited · 2026 Interim Report
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101INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 20. TRADE RECEIVABLES (continued) An ageing analysis of the trade receivables as at the end of the reporting period, based on the billing date and net of loss allowance, is as follows: 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Within 6 months 3,444,333 3,292,393 6 months to 1 year 1,292,174 1,462,629 1 to 2 years 1,523,319 1,437,234 2 to 3 years 595,284 433,527 Over 3 years 281,239 210,317 Total 7,136,349 6,836,100 The movements in the credit loss for trade receivables are as follows: 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) At the beginning of period 1,095,812 1,117,651 ECLs (note 7) 68,895 (21,839) At the end of period 1,164,707 1,095,812 A credit loss analysis was performed at the end of the reporting period using the simplified approach. Under the simplified approach, the Group did not track changes in credit risk, but instead recognised a credit loss based on lifetime ECLs at each reporting date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. Be global for shared prosperity
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INTERIM REPORT102 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 20. TRADE RECEIVABLES (continued) Set out below is the information about the credit risk exposure on the Group ’s trade receivables using a provision matrix: As at 30 June 2026 Ageing Less than 6 months 6 months to 1 year 1 to 2 years 2 to 3 years Over 3 years Total (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Gross carrying amount (RMB ’000) 3,676,644 1,381,541 1,874,778 857,812 510,281 8,301,056 ECLs (RMB ’000) 232,311 89,367 351,459 262,528 229,042 1,164,707 ECLs rate 6.32% 6.47% 18.75% 30.60% 44.89% 14.03% As at 31 December 2025 Ageing Less than 6 months 6 months to 1 year 1 to 2 years 2 to 3 years Over 3 years Total (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) Gross carrying amount (RMB ’000) 3,500,905 1,560,745 1,823,846 651,055 395,361 7,931,912 ECLs (RMB ’000) 208,512 98,116 386,612 217,528 185,044 1,095,812 ECLs rate 5.96% 6.29% 21.20% 33.41% 46.80% 13.82% Horizon Construction Development Limited · 2026 Interim Report
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103INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 21. CONTRACT ASSETS 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Contract assets arising from: Engineering and technical services 685,526 729,298 ECLs (105,271) (69,035) Total 580,255 660,263 Contract assets are initially recognised for revenue earned from construction and related services as the receipt of consideration depends on the milestone achieved and accepted by the customer. Included in contract assets for engineering and technical services are retention receivables. Upon completion of installation or construction and confirmed by the customer, the amounts recognised as contract assets are reclassified to trade receivables. The Group ’s credit policy with customers is disclosed in note 20 to the interim condensed consolidated financial information. An ageing analysis of the contract assets as at the end of the reporting period is as follows: 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Within 1 year 369,581 460,890 1 to 2 years 154,884 173,860 2 to 3 years 44,254 17,809 Over 3 years 11,536 7,704 Total 580,255 660,263 Be global for shared prosperity
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INTERIM REPORT104 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 21. CONTRACT ASSETS (continued) The movements in the credit losses for contract assets are as follows: 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) At the beginning of period 69,035 75,516 ECLs (note 7) 36,236 (6,481) At the end of period 105,271 69,035 A credit loss analysis was performed at the end of the reporting period using the simplified approach. Under the simplified approach, the Group did not track changes in credit risk, but instead recognised a credit loss based on lifetime ECLs at the end of the reporting period. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. The provision rates for the measurement of the ECLs of the contract assets are based on those of the trade receivables as the contract assets and the trade receivables are from the same customer bases. Set out below is the information about the credit risk exposure on the Group ’s contract assets using a provision matrix: 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Gross carrying amount 685,526 729,298 ECLs 105,271 69,035 ECLs rate 15.36% 9.47% Horizon Construction Development Limited · 2026 Interim Report
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105INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 22. DEBT INVESTMENTS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Measured at fair values: Notes receivable 755,954 1,154,250 ECLs (59,595) (92,421) Total 696,359 1,061,829 The above debt investments were classified as financial assets at fair value through other comprehensive income as the business model for the notes receivable was for both collecting contractual cash flows and discounting. The Group ’s credit policy with customers is disclosed in note 20. Movements in the credit losses for debt investments at fair value through other comprehensive income are as follows: 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) At the beginning of period 92,421 110,642 ECLs (note 7) (32,826) (18,221) At the end of period 59,595 92,421 Transferred financial assets that are not derecognised in their entirety: During the period, the Group endorsed certain notes receivable accepted by banks in the Chinese Mainland to certain of its suppliers in order to settle the trade payables due to such suppliers (the “Endorsement ”). In the opinion of the directors, the Group has retained the substantial risks and rewards, which include default risks relating to such endorsed bills, and accordingly, it continued to recognise the full carrying amounts of the endorsed bills and the associated trade payables settled. Subsequent to the Endorsement, the Group did not retain any rights on the use of the endorsed bills, including the sale, transfer or pledge of the endorsed bills to any other third parties. The incurred amount of the trade payables settled by the endorsed bills as at 30 June 2026 was RMB174,335,000 (31 December 2025: RMB337,842,000). Be global for shared prosperity
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INTERIM REPORT106 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 22. DEBT INVESTMENTS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (continued) During the period, the Group discounted certain notes receivable to banks in exchange for cash (the “Discounted Bills ”). The incurred amount of the notes receivable as at 30 June 2026 was RMB7,425,000 (31 December 2025: RMB25,341,000). In the opinion of the directors, the Group has retained the substantial risks and rewards, which include default risks relating to such Discounted Bills, and accordingly, it continued to recognise the full carrying amounts of the Discounted Bills and the associated interest-bearing bank borrowings. Transferred financial assets that are derecognised in their entirety: During the period, the Group endorsed/discounted certain notes receivable accepted by banks in the Chinese Mainland to certain of its suppliers or in exchange for cash (the “Derecognised Bills ”). The incurred amount of the notes receivable as at 30 June 2026 was RMB34,009,000 (31 December 2025: RMB102,122,000). In the opinion of the directors, the Group had transferred substantially all risk and rewards relating to the Derecognised Bills. Accordingly, it had derecognised the full carrying amount of the Derecognised Bills. The maximum exposure to loss from the Group ’s continuing involvement in the Derecognised Bills and the undiscounted cash flows to repurchase these Derecognised Bills is equal to their carrying amounts. In the opinion of the directors, the fair values of the Group ’s continuing involvement in the Derecognised Bills are not significant. 23. CASH AND CASH EQUIVALENTS AND RESTRICTED BANK BALANCES 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Cash and bank balances 1,672,125 1,610,210 Less: Restricted bank balances (243,476) (88,205) Cash and cash equivalents 1,428,649 1,522,005 As at 30 June 2026, the cash and bank balances of the Group denominated in RMB amounted to RMB1,312,958,000 (31 December 2025: RMB1,404,035,000). The RMB is not freely convertible into other currencies, however, under the Chinese Mainland ’s Foreign Exchange Control Regulations and Administration of Settlement, and Sale and Payment of Foreign Exchange Regulations, the Group is permitted to exchange RMB for other currencies through banks authorised to conduct foreign exchange business. Horizon Construction Development Limited · 2026 Interim Report
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107INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 23. CASH AND CASH EQUIVALENTS AND RESTRICTED BANK BALANCES (continued) Cash at banks earns interest at floating rates based on daily bank deposit rates. The bank balances are deposited with creditworthy banks with no recent history of default. As at 30 June 2026, cash at banks of RMB214,439,000 (31 December 2025: RMB58,221,000) were time deposits. As at 30 June 2026, cash at banks of RMB29,037,000 (31 December 2025: RMB29,808,000) were frozen by court order in connection with pending litigation. 24. TRADE AND BILLS PAYABLES An ageing analysis of the trade and bills payables as at the end of the reporting period, based on the receipt date, is as follows: 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Within 1 year 2,961,071 2,787,277 1 to 2 years 112,957 94,915 2 to 3 years 33,713 7,505 Over 3 years 40,804 34,547 Total 3,148,545 2,924,244 The trade and bills payables are non-interest-bearing. Be global for shared prosperity
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INTERIM REPORT108 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 25. OTHER PAYABLES AND ACCRUALS 30 June 2026 31 December 2025 Notes RMB’000 RMB’000 (Unaudited) (Audited) Current Advanced from customers 329,602 313,231 Other taxes payable 137,986 228,694 Other payables (a) 133,199 168,523 Salary and welfare payables 73,034 89,300 Interest payable 53,099 60,395 Dividend payables 43,614 – Contract liabilities (b) 35,157 79,673 Lease deposits 19,673 30,258 Due to related parties (note 35(c)) – 23 Subtotal 825,364 970,097 Non-current Lease deposits 27,991 20,632 Provisions 6,759 4,298 Subtotal 34,750 24,930 Total 860,114 995,027 Notes: (a) Other payables are non-interest-bearing and repayable on demand. (b) Details of contract liabilities are as follows: 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Short-term advances received from customers Sale of goods 20,569 22,818 Engineering and technical services 14,588 56,855 Total 35,157 79,673 Contract liabilities include short-term advances received to deliver goods and engineering and technical services. The change in contract liabilities in the period was mainly due to the change in short-term advances received from customers in relation to the delivery of goods and provision of engineering and technical services at the end of the reporting period. Horizon Construction Development Limited · 2026 Interim Report
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109INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 26. INTEREST-BEARING BANK AND OTHER BORROWINGS 30 June 2026 31 December 2025 Effective interest rate (%) Maturity RMB’000 Effective interest rate (%) Maturity RMB’000 (Unaudited) (Audited) Current Bank borrowings – unsecured (a) 1.14-2.96 2026-2027 2,563,796 1.08-2.90 2026 1,172,265 Current portion of long-term bank borrowings – unsecured (a) 2.20-5.07 2026-2027 3,401,007 2.35-4.51 2026 3,641,813 Current portion of long-term other borrowings – secured (b) 2.80-4.87 2026-2027 39,185 2.80-4.87 2026 37,620 Other borrowings – unsecured (c) 2.15 2026 296 2.42-6.00 2026 700,000 Other borrowings – secured (b) 2.75-3.90 2026-2027 1,382,406 2.75-5.37 2026 1,743,010 Subtotal 7,386,690 7,294,708 Non-current Bank borrowings – unsecured (a) 2.20-5.07 2027-2033 9,410,703 2.35-4.25 2027-2032 8,973,258 Other borrowings – secured (b) 2.75-4.87 2027-2031 3,170,079 2.75-5.37 2027-2030 4,060,239 Subtotal 12,580,782 13,033,497 Total 19,967,472 20,328,205 Be global for shared prosperity
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INTERIM REPORT110 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 26. INTEREST-BEARING BANK AND OTHER BORROWINGS (continued) Analysed into: 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Bank borrowings repayable: Within one year 5,964,803 4,814,078 In the second year 2,618,784 2,590,803 In the third to fifth years, inclusive 5,699,644 5,194,492 Beyond five years 1,092,275 1,187,963 Subtotal 15,375,506 13,787,336 Other borrowings repayable: Within one year 1,421,887 2,480,630 In the second year 1,400,719 1,502,051 In the third to fifth years, inclusive 1,769,360 2,558,188 Subtotal 4,591,966 6,540,869 Total 19,967,472 20,328,205 Notes: (a) At 30 June 2026, the Group ’s bank borrowings of RMB7,425,000 arose from un-derecognised discounted notes receivable, of which the Group retained the substantial risks and rewards (31 December 2025: RMB25,341,000). At 30 June 2026, bank borrowings of RMB773,857,000 arose from supplier finance arrangements (31 December 2025: RMB121,972,000). The Group has established supplier finance arrangements that are offered to some of the Group ’s key suppliers in the Chinese Mainland. Participation in the arrangements is at the suppliers ’ own discretion. Suppliers that participate in the supplier finance arrangements will receive early payments or payments at the original due dates on invoices sent to the Group from the Group ’s external finance provider. If suppliers choose to receive early payments, they pay a fee to the finance provider. In order for the finance provider to pay the invoices, the goods must have been received or supplied and the invoices must have been approved by the Group. Payments to suppliers ahead of or at the invoice due date are processed by the finance provider and, in all cases, the Group settles the original invoice by paying the finance provider in line with the original invoice maturity date or at a later date as agreed with the finance provider. Payment terms with suppliers have not been renegotiated in conjunction with the arrangements. The Group provides no security to the finance provider. The original payment terms these financial liabilities that are part of the Group ’s supplier finance arrangements included in the trade and bills payables are normally settled on terms of 30 to 60 days terms, whereas the payment terms for the above amounts of the Group ’s supplier finance arrangements for which included in interest-bearing bank and other borrowings are normally extended to no more than 1 year, and in a few instances, are extended to five years. Horizon Construction Development Limited · 2026 Interim Report
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111INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 26. INTEREST-BEARING BANK AND OTHER BORROWINGS (continued) Notes: (continued) All financial liabilities that are part of the supplier finance arrangements are included in interest-bearing bank and other borrowings in the statement of financial position, with RMB773,857,000 (31 December 2025: RMB121,972,000) included in the current portion of unsecured bank loans and no amount included in the non-current portion of unsecured bank loans (31 December 2025: Nil). (b) At 30 June 2026, long-term other borrowings of RMB4,591,670,000 (31 December 2025: RMB5,840,869,000) were secured by property, plant and equipment amounting to RMB5,602,704,000 (31 December 2025: RMB6,820,439,000) and deposits amounting to RMB105,080,000 (31 December 2025: RMB134,713,000). (c) At 30 June 2026, other borrowings of RMB296,000 arising from the factoring of accounts receivable were unsecured (31 December 2025: RMB700,000,000). (d) At 30 June 2026, all bank borrowings and other borrowings were denominated in RMB, except that bank borrowings equivalent to RMB59,956,000 were denominated in Japanese Yen (JPY) (31 December 2025: RMB153,402,000), bank borrowings equivalent to RMB191,816,000 were denominated in United States dollars (USD) (31 December 2025: Nil) and bank borrowings equivalent to RMB28,766,000 were denominated in Malaysian Ringgit (MYR) (31 December 2025: Nil). 27. SHARE CAPITAL Shares 30 June 2026 31 December 2025 (Unaudited) (Audited) Authorised 5,000,000,000 shares of a par value of USD0.00002 each 100,000 100,000 Shares 30 June 2026 31 December 2025 (Unaudited) (Audited) Issue and paid: 2,832,550,000 shares of a par value of USD0.00002 each 56,651 56,651 364,694,000 shares of a par value of USD0.00002 each* 7,294 7,294 Total 63,945 63,945 Equivalent to RMB 421,000 421,000 * On 25 May 2023, the ordinary shares of the Company were listed on the Hong Kong Stock Exchange, and in connection with the Company ’s listing, 364,694,000 ordinary shares of the Company were issued through global offering to public and international investors at the offer price of HKD4.52 per share for aggregate cash proceeds before expenses of HKD1,648,417,000 (equivalent to RMB1,488,329,000). Be global for shared prosperity
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INTERIM REPORT112 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 28. SHARE OPTION SCHEME On 12 March 2024, the Board approved the adoption of the share option scheme (the “2024 Share Option Scheme ”), which was subsequently ratified by the Company ’s shareholders during the annual general meeting held on 4 June 2024. The Company operates the 2024 Share Option Scheme for the purpose of providing incentives and rewards to eligible participants and certain qualified participants who contribute to the success of the Group ’s operations. Eligible participants of the 2024 Share Option Scheme include senior and middle management personnel, as well as other key employees of the Company or any subsidiary (the “Grantees ”). The total number of new shares in respect of the share options which may be granted under the 2024 Share Option Scheme shall not exceed 1.5% of the Company ’s total issued shares (excluding treasury shares) as at the date of approval of the adoption of the 2024 Share Option Scheme by the shareholders, which is 47,958,660 shares. Meanwhile, the Board approved on 12 March 2024 that the Company may only grant share options which can be exercised into not more than 23,979,330 shares under the 2024 Share Option Scheme in the year 2024. In any event, the total number of shares which may be issued in respect of all share options and awards to be granted under the 2024 Share Option Scheme and any other share schemes shall not exceed 10% of the Company ’s total issued shares (excluding treasury shares) as at the date of approval of the adoption of the 2024 Share Option Scheme by the shareholders. The offer of a grant of share options may be accepted upon payment of a nominal consideration of HKD1 in total by the Grantees subject to any early termination, and the Share Option Scheme will remain in force for a period of 10 years commencing on the date on which the share option scheme is approved by the shareholders of the Company. The vesting of the share options is mainly subject to fulfilment of the Company ’s performance targets, the Grantees remaining at all times after the offer date and on each vesting date as employees of the Group, as well as the Grantees achieving a specified level in annual personal performance evaluations. The exercise price in respect of any option shall be such price as determined by the Board or the administration committee of the 2024 Share Option Scheme and notified to the Grantees and which shall not be less than the higher of: (i) the closing price of the shares on the Hong Kong Stock Exchange as stated in the Hong Kong Stock Exchange ’s daily quotation sheet on the offer date; and (ii) the average of the closing prices of the shares on the Hong Kong Stock Exchange as stated in the Hong Kong Stock Exchange ’s daily quotation sheets for the five trading days immediately preceding the offer date. The shares do not carry nominal value. On 8 August 2025, the Company has resolved to make an offer to grant up to 9,580,000 share options to certain participants under the 2024 Share Option Scheme of the Company adopted on 4 June 2024 to subscribe for up to a total of 9,580,000 ordinary shares, representing approximately 0.30% of the total shares in issue as at the date of announcement. Horizon Construction Development Limited · 2026 Interim Report
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113INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 28. SHARE OPTION SCHEME (continued) Movements in the number of the share options outstanding during the reporting period are as follows: As at 30 June 2026 Number of share options Exercise price per share option (HKD) Date of grant Outstanding as at 1 January 2026 Granted Lapsed Outstanding as at 30 June 2026 1.45 8 July 2024 6,365,335 – (466,666) 5,898,669 1.34 8 August 2025 8,800,000 – (570,000) 8,230,000 Total 15,165,335 – (1,036,666) 14,128,669 As at 31 December 2025 Number of share options Exercise price per share option (HKD) Date of grant Outstanding as at 1 January 2025 Granted Lapsed Outstanding as at 31 December 2025 1.45 8 July 2024 11,420,000 – (5,054,665) 6,365,335 1.34 8 August 2025 – 9,190,000 (390,000) 8,800,000 Total 11,420,000 9,190,000 (5,444,665) 15,165,335 The fair value (measured as at the grant date) of the share options that were outstanding as at 30 June 2026 was RMB9,140,000 (31 December 2025: RMB9,818,000). The weighted average fair values were RMB0.62, RMB0.67, and RMB0.66 per option for each of the three tranches with one-year, two-year, and three-year vesting periods, respectively (31 December 2025: RMB0.62, RMB0.67 and RMB0.66 per option). The Group recognised a share option expense of RMB1,948,000 in employee benefit expense during the six months ended 30 June 2026 (30 June 2025: reversed a share option expense of RMB46,000). Be global for shared prosperity
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INTERIM REPORT114 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 28. SHARE OPTION SCHEME (continued) The fair value of the share options was estimated as at the date of grant, using a binomial model, taking into account the terms and conditions upon which the options were granted. The following table lists the main inputs to the model used: 31 December 2025 (Audited) Expected dividend yield (%) 3.36 Expected volatility (%) 81.40 Risk-free interest rate (%) 2.97 Validity period of the share options (year) 10 Share price (HKD per share) 1.34 Expected exercise trigger multiple 2.00 Estimation of the value of the share options is subjective and uncertain as such values are subject to a number of assumptions and the limitation of the model. The expected volatility is based on the historical volatility reflecting the assumption that the historical volatility is indicative of future trends, which may also not necessarily be the actual outcome. The expected exercise trigger multiple is also estimated and is not necessarily indicative of the exercise patterns that may occur. All significant features necessary to be considered for the measurement of fair values of the share options granted in the year were incorporated into such measurement. At 30 June 2026, the Company had 14,128,669 (31 December 2025: 15,165,335) non-vested share options outstanding under the 2024 Share Option Scheme, including 3,156,667 (31 December 2025: 3,156,667) non-vested share options granted to certain executive directors, 690,000 (31 December 2025: 690,000) non-vested share options granted to certain employees among five highest paid employees (not including executive directors) and 10,282,002 (31 December 2025: 11,318,668) non-vested share options granted to certain key management personnel. Should all of them be vested, the exercise in full of the outstanding share options would, under the present capital structure of the Company, result in the issue of 14,128,669 (31 December 2025: 15,165,335) additional ordinary shares of the Company. Horizon Construction Development Limited · 2026 Interim Report
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115INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 29. RESTRICTED SHARE AWARD SCHEME The Board approved the adoption of the restricted share award scheme (the “2024 Restricted Share Award Scheme ”) on 12 March 2024, under which some restricted shares will be held on trust for the relevant selected grantees (the “Selected Grantees ”) until such restricted shares are vested with the relevant Selected Grantees in accordance with the rules of the 2024 Restricted Share Award Scheme. Subject to the approval of the Board, the number of restricted shares to be granted under the 2024 Restricted Share Award Scheme shall not exceed 3.5% of the total number of issued shares of the Company (excluding treasury shares) as at the date of approval and adoption of the 2024 Restricted Share Award Scheme by the Board, namely 111,903,540 shares. The Board also approved the grant of not more than 55,951,770 restricted shares on 12 March 2024. The vesting of the 2024 restricted shares under the 2024 Restricted Share Award Scheme is mainly subject to the fulfilment of the Company ’s performance targets, Selected Grantees remaining as employees of the Group, as well as Selected Grantees achieving a specified level in annual personal performance evaluations. On 8 August 2025, the Board announced that, the Company has resolved the offer to grant share award scheme to the Grantees under the 2024 Restricted Share Award Scheme adopted on 12 March 2024. The following restricted shares were outstanding under the 2024 Restricted Share Award Scheme during the reporting period: Number of restricted shares (Unaudited) At 1 January 2026 33,800,006 Lapsed (2,423,333) At 30 June 2026 31,376,673 Number of restricted shares (Audited) At 1 January 2025 26,580,000 Granted 21,350,000 Vested (1,497,000) Lapsed (12,632,994) At 31 December 2025 33,800,006 Be global for shared prosperity
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INTERIM REPORT116 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 29. RESTRICTED SHARE AWARD SCHEME (continued) At 30 June 2026, the Company had 31,376,673 (31 December 2025: 33,800,006) non-vested restricted shares outstanding under the 2024 Restricted Share Award Scheme, including 7,356,667 (31 December 2025: 7,356,667) non-vested restricted shares granted to certain executive directors, 1,590,000 (31 December 2025: 1,590,000) non-vested restricted shares granted to certain employees among five highest paid employees (not including executive directors) and 22,430,006 (31 December 2025: 24,853,339) non-vested restricted shares granted to certain key management personnel. The movements of the shares held for the 2024 Restricted Share Award Scheme are as follows: Number of shares Amounts RMB’000 (Unaudited) (Unaudited) At 1 January 2026 and 30 June 2026 62,495,688 87,486 Number of shares Amounts RMB’000 (Audited) (Audited) At 1 January 2025 63,869,000 89,455 Purchase of shares under 2024 Restricted Share Award Scheme* 123,688 128 Vested (1,497,000) (2,097) At 31 December 2025 62,495,688 87,486 * The Company purchased its own shares through the trusts under the 2024 Restricted Share Award Scheme, which were presented as shares held for the share award scheme. Horizon Construction Development Limited · 2026 Interim Report
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117INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 29. RESTRICTED SHARE AWARD SCHEME (continued) The fair value (measured as at the grant dates) of the restricted shares that were outstanding as at 30 June 2026 was RMB37,292,000 (31 December 2025: RMB38,292,000). The weighted average fair values were RMB1.17, RMB1.11 and RMB1.10 per share for each of the three tranches with one-year, two-year and three-year vesting periods, respectively (31 December 2025: RMB1.17, RMB1.11 and RMB1.10). The Group recognised an amount of RMB8,491,000 in employee benefit expense during the six months ended 30 June 2026 (30 June 2025: reversed an amount of RMB828,000). The fair value of the 2024 Restricted Shares granted was estimated as at the date of grant, using a no-arbitrage model, taking into account the terms and conditions upon which the restricted shares were granted. The following table lists the main inputs to the model used: 31 December 2025 (Audited) Expected dividend yield (%) 3.36 Share price (HKD per share) 1.34 30. RESERVES The amounts of the Group ’s reserves and the movements therein for the six months ended 30 June 2026 and 2025 are presented in the consolidated statements of changes in equity. (a) Share premium The share premium represents the difference between the par value of the shares issued and the consideration received. (b) Merger reserve The merger reserve of the Group represents the difference between the changes of the contribution from the then holding company before the completion of the Reorganisation and the consideration paid by the Group for the business combination under common control. Be global for shared prosperity
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INTERIM REPORT118 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 30. RESERVES (continued) (c) Capital reserve (1) Ordinary shares with a redemption obligation Pursuant to the Share Purchase Agreement signed by and among the pre-IPO investors of the Group on 16 April 2021, an aggregate of 6,651 ordinary shares with a redemption obligation were issued and allocated to the Pre-IPO investors at a consideration of USD204,910,000 (equivalent to RMB1,326,185,000). On 25 May 2023, the ordinary shares of the Company were listed on the Hong Kong Stock Exchange, the redemption obligation with a carrying amount of RMB1,676,276,000 (including principal of RMB1,445,212,000 and interest of RMB231,064,000) was classified to capital reserve. (2) Other capital reserve Other capital reserve represents any difference between the carrying amount of net assets attributable to the non- controlling shareholders and the fair value of the consideration paid. (d) Special reserve Special reserve mainly represents funds set aside for the purpose of certain safety production activities. Pursuant to certain regulations issued by the State Administration of Work Safety of the PRC and other relevant regulatory bodies, the subsidiaries, namely Shanghai Horizon Equipment & Engineering Co., Ltd., Shanghai Hongjin Equipment & Engineering Co., Ltd. and Tianjin Horizon Construction Development Engineering Technology Co., Ltd. set aside funds mainly for construction service activities at prescribed rates. These funds can be used for maintenance and/or improvements of safety of these activities, and are not available for distribution to shareholders. The amounts are generally expenses in nature and charged to profit or loss as incurred, and at the same time, the corresponding amounts of safety reserve fund were utilised and transferred back to retained profits until such special reserve was fully utilised. 31. NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS (a) Major non-cash transactions For the six months ended 30 June 2026, the Group had non-cash additions to right-of-use assets and lease liabilities of RMB149,620,000, in respect of lease arrangements for offices and equipment (30 June 2025: RMB98,444,000). Horizon Construction Development Limited · 2026 Interim Report
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119INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 31. NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS (continued) (a) Major non-cash transactions (continued) For the six months ended 30 June 2026, the trade receivables for several customers were settled by certain properties of RMB14,038,000 (30 June 2025: RMB36,909,000). For the six months ended 30 June 2026, the trade and bills payables for several suppliers were settled by certain properties of RMB50,248,000 (30 June 2025: RMB9,665,000). For the six months ended 30 June 2026, the Group had equipment, materials and moulds of RMB53,493,000 carried forward to inventories for external sale (30 June 2025: RMB173,818,000). (b) Changes in liabilities arising from financing activities As at and for the six months ended 30 June 2026 Interest payable Bank and other borrowings Lease liabilities Total RMB’000 RMB’000 RMB’000 RMB’000 (Unaudited) (Unaudited) (Unaudited) (Unaudited) At 1 January 2026 60,395 20,328,205 607,852 20,996,452 Changes in principal from financing cash flows – (366,292) (125,430) (491,722) Maturity of unhedged derivative financial instruments – 5,559 – 5,559 New leases – – 149,620 149,620 Disposal – – (61,456) (61,456) Interest accrued 308,446 – 10,759 319,205 Interest paid (315,742) – – (315,742) At 30 June 2026 53,099 19,967,472 581,345 20,601,916 Be global for shared prosperity
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INTERIM REPORT120 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 31. NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS (continued) (b) Changes in liabilities arising from financing activities (continued) As at and for the six months ended 30 June 2025 Interest payable Bank and other borrowings Lease liabilities Total RMB’000 RMB’000 RMB’000 RMB’000 (Unaudited) (Unaudited) (Unaudited) (Unaudited) At 1 January 2025 76,756 20,902,895 633,582 21,613,233 Changes in principal from financing cash flows – 276,127 (160,977) 115,150 Supplier financing arrangements – 17,480 – 17,480 Additions as a result of acquisition of subsidiaries – 28,190 38,027 66,217 New leases – – 98,444 98,444 Disposal – – (5,873) (5,873) Interest accrued 388,992 – 12,078 401,070 Interest paid (397,235) – – (397,235) At 30 June 2025 68,513 21,224,692 615,281 21,908,486 (c) Total cash outflow for leases The total cash outflow for leases included in the statement of cash flows is as follows: For the six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Within operating activities (261,850) (288,809) Within financing activities (125,430) (160,977) Total (387,280) (449,786) Horizon Construction Development Limited · 2026 Interim Report
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121INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 32. CONTINGENT LIABILITIES As at 30 June 2026 and 31 December 2025, the Group did not have any material contingent liability, guarantee or any other material litigation or claim outstanding or threatened against the Group that could have a material adverse effect on its business, financial condition or results of operations. 33. PLEDGE OF ASSETS Details of the Group ’s assets pledged under bank and other borrowings and restricted bank balances are contained in notes 23 and 26 of the interim condensed consolidated financial information. 34. COMMITMENTS The Group had the following contractual commitments at the end of the reporting period: 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Contracted, but not provided for: Purchase of plant and machinery 143,722 29,980 Be global for shared prosperity
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INTERIM REPORT122 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 35. RELATED PARTY TRANSACTIONS (a) Name and relationship Name of related party Relationship with the Group Far East Horizon Limited (ʮ̡ ) Controlling Shareholder International Far Eastern Leasing Co., Ltd. (ʮ̡ ) Company controlled by the Controlling Shareholder Far East Horizon Leasing (Guangdong) Co., Ltd. (ፄ༟ॡ༣ (؇)ʮ̡ ) Company controlled by the Controlling Shareholder Hangzhou Hongqian Urban Development and Construction Co., Ltd. (ʮ̡ ) Company controlled by the Controlling Shareholder Hangzhou Hongyue Urban Development and Construction Co., Ltd. (ʮ̡ ) Company controlled by the Controlling Shareholder Suzhou Hongxiang Urban Construction and Development Co., Ltd. (ʮ̡ ) Company controlled by the Controlling Shareholder Hangzhou Hongzhan Urban Development and Construction Co., Ltd. (ʮ̡ ) Company controlled by the Controlling Shareholder Beijing Xingzhu Real Estate Development Co., Ltd. (ʮ̡ ) Company controlled by the Controlling Shareholder Shaoxing Shangyu Boteng Metal Products Co., Ltd. (ʮ̡ ) Company controlled by a close family member of key management personnel Horizon Construction Development Limited · 2026 Interim Report
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123INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 Name of related party Relationship with the Group Shanghai Jinmao Construction & Decoration Co., Ltd. (ʮ̡ ) Subsidiary of a group which has significant influence over the Controlling Shareholder of the Company Beijing Jinmao Habitat Environment Technology Co., Ltd. (ʮ̡ ) Subsidiary of a group which has significant influence over the Controlling Shareholder of the Company Luxi Industrial Equipment Co., Ltd. (ʮ̡ ) Subsidiary of a group which has significant influence over the Controlling Shareholder of the Company Sinochem Jilin Changshan Chemical Co., Ltd. (ʮ̡ ) Subsidiary of a group which has significant influence over the Controlling Shareholder of the Company Shandong Liaocheng Luxi Nitro Compound Fertilizer Co., Ltd. (ʮ̡ ) Subsidiary of a group which has significant influence over the Controlling Shareholder of the Company Chengdu Jinmao Smart Energy Technology Co., Ltd. (ʮ̡ ) Subsidiary of a group which has significant influence over the Controlling Shareholder of the Company Shanghai Yijia Construction Development Co., Ltd. (ʮ̡ ) Associate of the Controlling Shareholder 35. RELATED PARTY TRANSACTIONS (continued) (a) Name and relationship (continued) Be global for shared prosperity
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INTERIM REPORT124 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 35. RELATED PARTY TRANSACTIONS (continued) (b) The Group had the following transactions with related parties during the period: For the six months ended 30 June 2026 2025 RMB’000 RMB’000 Notes (Unaudited) (Unaudited) (1) Operating lease income (i) Far East Horizon Leasing (Guangdong) Co., Ltd. 57 – Sinochem Jilin Changshan Chemical Co., Ltd. 40 – Shanghai Yijia Construction Development Co., Ltd. 10 – Shandong Liaocheng Luxi Nitro Compound Fertilizer Co., Ltd. 9 – Chengdu Jinmao Smart Energy Technology Co., Ltd. 6 – Luxi Industrial Equipment Co., Ltd. – 162 Shanghai Jinmao Construction & Decoration Co., Ltd. – 4 Beijing Jinmao Habitat Environment Technology Co., Ltd. – 1 122 167 (2) Engineering and technical services (ii) Hangzhou Hongzhan Urban Development and Construction Co., Ltd. 17,165 – Hangzhou Hongyue Urban Development and Construction Co., Ltd. 15,564 – Hangzhou Hongqian Urban Development and Construction Co., Ltd. 3,441 – Beijing Xingzhu Real Estate Development Co., Ltd. 1,843 – Suzhou Hongxiang Urban Construction and Development Co., Ltd. 577 – Luxi Industrial Equipment Co., Ltd. – 2 38,590 2 (3) Purchases of goods and services Shaoxing Shangyu Boteng Metal Products Co., Ltd. (iii) 77,625 5,268 International Far Eastern Leasing Co., Ltd. (iv) – 572 77,625 5,840 Horizon Construction Development Limited · 2026 Interim Report
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125INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 35. RELATED PARTY TRANSACTIONS (continued) (b) The Group had the following transactions with related parties during the period: (continued) Notes: (i) The operating lease income from related parties arose from the operating lease of aerial work platforms. The prices were determined on arm ’s length basis with reference to (a) the specifications, technical requirements, models and lease terms of the service vehicles; and (b) the rates of service vehicles with similar specifications, technical requirements and model for similar leasing services provided to the independent third parties. (ii) The engineering and technical services income from related parties arose from logistics services and retrofitting services. The transportation prices were determined on arm ’s length basis with reference to the transportation distances and weight of the vehicles; and the modification service prices were determined on arm ’s length basis with reference to the numbers of the vehicles. (iii) The goods purchased mainly are moulds. The transaction prices were determined on arm ’s length basis with reference to (a) the specifications , models , unit price types and quality of the materials; and (b) the prevailing market rates of similar materials provided by the independent third parties. (iv) The procurement of services mainly consists of information technology basic services, system operation and maintenance services and development services. Transaction prices are determined on arm ’s length basis of the cost of labour matching the degree of benefit to the recipient of the labour, such as the amount of equipment used, the volume of data traffic and working hours. Be global for shared prosperity
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INTERIM REPORT126 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 35. RELATED PARTY TRANSACTIONS (continued) (c) Outstanding balance with related parties: 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) (1) Due from related companies Prepayments, other receivables and other assets: Shaoxing Shangyu Boteng Metal Products Co., Ltd. 5,694 4,131 Shanghai Yijia Construction Development Co., Ltd. 420 1,016 Hangzhou Hongqian Urban Development and Construction Co., Ltd. – 1,851 Suzhou Hongxiang Urban Construction and Development Co., Ltd. – 1,209 6,114 8,207 Trade receivables: Hangzhou Hongqian Urban Development and Construction Co., Ltd. 11,745 5,880 Hangzhou Hongzhan Urban Development and Construction Co., Ltd. 11,684 – Hangzhou Hongyue Urban Development and Construction Co., Ltd. 7,655 473 Suzhou Hongxiang Urban Construction and Development Co., Ltd. 5,859 2,755 Beijing Xingzhu Real Estate Development Co., Ltd. 2,189 – Sinochem Jilin Changshan Chemical Co., Ltd. 45 – Luxi Industrial Equipment Co., Ltd. 26 30 International Far Eastern Leasing Co., Ltd. 19 19 Shanghai Yijia Construction Development Co., Ltd. 12 – Shanghai Jinmao Construction & Decoration Co., Ltd. 7 7 Chengdu Jinmao Smart Energy Technology Co., Ltd. 3 3 39,244 9,167 (2) Due to related companies Other payables: Far East Horizon Limited – 23 Trade and bills payables: Shaoxing Shangyu Boteng Metal Products Co., Ltd. 1,360 – International Far Eastern Leasing Co., Ltd. – 580 1,360 580 Horizon Construction Development Limited · 2026 Interim Report
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127INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 35. RELATED PARTY TRANSACTIONS (continued) (c) Outstanding balance with related parties: (continued) At the end of the reporting period, the balances due from/to related parties were unsecured, interest-free and repayable on demand. At the end of the reporting period, except for the other payables to Far East Horizon Limited, the balances due from/to related parties were trade in nature. (d) Compensation of key management personnel of the Group: For the six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Short-term employee benefits 4,556 4,526 Equity-settled share-based payment expense 3,732 (225) Post-employment benefits 224 222 Total compensation paid to key management personnel 8,512 4,523 During the reporting period, certain members of key management personnel of the Group were granted share options and restricted shares in respect of their services to the Group under the Schemes of the Company, further details of which are set out in notes 28 and 29. to the interim condensed consolidated financial information. Be global for shared prosperity
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INTERIM REPORT128 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 36. FINANCIAL INSTRUMENTS BY CATEGORY The carrying amounts of the categories of financial instruments as at the end of the reporting period are as follows: As at 30 June 2026 Financial assets Financial assets at amortised cost Financial assets at fair value through other comprehensive income Total RMB’000 RMB’000 RMB’000 (Unaudited) (Unaudited) (Unaudited) Financial assets included in prepayments, other receivables and other assets 612,223 – 612,223 Trade receivables 7,136,349 – 7,136,349 Debt investments at fair value through other comprehensive income – 696,359 696,359 Restricted bank balances 243,476 – 243,476 Cash and bank balances 1,428,649 – 1,428,649 Total 9,420,697 696,359 10,117,056 Financial liabilities Financial liabilities at fair value through profit or loss Financial liabilities at amortised cost Hedging instruments designated in cash flow hedges Total RMB’000 RMB’000 RMB’000 RMB’000 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Trade and bills payables – 3,148,545 – 3,148,545 Financial liabilities included in other payables and accruals – 277,576 – 277,576 Derivative financial instruments – – 10,906 10,906 Interest-bearing bank and other borrowings – 19,967,472 – 19,967,472 Financial liabilities at fair value through profit or loss 73,937 – – 73,937 Total 73,937 23,393,593 10,906 23,478,436 Horizon Construction Development Limited · 2026 Interim Report
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129INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 36. FINANCIAL INSTRUMENTS BY CATEGORY (continued) The carrying amounts of the categories of financial instruments as at the end of the reporting period are as follows: (continued) As at 31 December 2025 Financial assets Financial assets at amortised cost Financial assets at fair value through other comprehensive income Total RMB’000 RMB’000 RMB’000 (Audited) (Audited) (Audited) Financial assets included in prepayments, other receivables and other assets 541,248 – 541,248 Trade receivables 6,836,100 – 6,836,100 Debt investments at fair value through other comprehensive income – 1,061,829 1,061,829 Restricted bank balances 88,205 – 88,205 Cash and bank balances 1,522,005 – 1,522,005 Total 8,987,558 1,061,829 10,049,387 Financial liabilities Financial liabilities at fair value through profit or loss Financial liabilities at amortised cost Hedging instruments designated in cash flow hedges Total RMB’000 RMB’000 RMB’000 RMB’000 (Audited) (Audited) (Audited) (Audited) Trade and bills payables – 2,924,244 – 2,924,244 Financial liabilities included in other payables and accruals – 279,831 – 279,831 Derivative financial instruments – – 17,298 17,298 Interest-bearing bank and other borrowings – 20,328,205 – 20,328,205 Financial liabilities at fair value through profit or loss 73,937 – – 73,937 Total 73,937 23,532,280 17,298 23,623,515 Be global for shared prosperity
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INTERIM REPORT130 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 36. FINANCIAL INSTRUMENTS BY CATEGORY (continued) Financial instruments not measured at fair value Management has assessed that the fair values of cash and cash equivalents, restricted bank balances, trade receivables, financial assets included in prepayments, other receivables and other assets, trade and bills payables, and financial liabilities included in other payables and accruals approximate to their carrying amounts largely due to the short-term maturities of these instruments. Interest-bearing bank and other borrowings are mostly on floating rate terms and bear interest at prevailing market interest rates and their carrying values approximate to their fair values. 37. FAIR VALUE AND FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS Fair value hierarchy The Group uses the following hierarchy for determining and disclosing the fair values of financial instruments: Level 1: fair values measured based on quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2: fair values measured based on valuation techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly Level 3: fair values measured based on valuation techniques for which any inputs which have a significant effect on the recorded fair value are not based on observable market data (unobservable inputs) Horizon Construction Development Limited · 2026 Interim Report
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131INTERIM REPORT NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 37. FAIR VALUE AND FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS (continued) Fair value hierarchy (continued) Assets and liabilities measured at fair value: As at 30 June 2026 Fair value measurement using Financial assets and liabilities Quoted prices in active markets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) Total RMB’000 RMB’000 RMB’000 RMB’000 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Debt investments at fair value through other comprehensive income – 696,359 – 696,359 Derivative financial instruments – (10,906) – (10,906) Financial liabilities at fair value through profit or loss – – (73,937) (73,937) Total – 685,453 (73,937) 611,516 As at 31 December 2025 Fair value measurement using Financial assets and liabilities Quoted prices in active markets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) Total RMB’000 RMB’000 RMB’000 RMB’000 (Audited) (Audited) (Audited) (Audited) Debt investments at fair value through other comprehensive income – 1,061,829 – 1,061,829 Derivative financial instruments – (17,298) – (17,298) Financial liabilities at fair value through profit or loss – – (73,937) (73,937) Total – 1,044,531 (73,937) 970,594 Be global for shared prosperity
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INTERIM REPORT132 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 30 June 2026 37. FAIR VALUE AND FAIR VALUE HIERARCHY OF FINANCIAL INSTRUMENTS (continued) Fair value hierarchy (continued) The fair values of debt investments at fair value through other comprehensive income have been calculated by discounting the future cash flows using rates currently available for instruments with similar terms, credit risk and remaining maturities. The fair values of the cross-currency interest rate swap and forward currency contract were calculated by discounting the future cash flows using the forward exchange rate and RMB risk-free rate that are observable market inputs. The changes in fair values as a result of the Group for debt investments at fair value through other comprehensive income as at 30 June 2026 and as at 31 December 2025 were assessed to be insignificant. The significant unobservable input to the valuation of financial liabilities at fair value through profit or loss is discount for lack of marketability ( “DLOM”). 38. EVENTS AFTER THE REPORTING PERIOD There have been no significant events since the end of the reporting period. 39. APPROVAL OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION The interim condensed consolidated financial information was approved and authorised for issue by the Board on 4 August 2026. Horizon Construction Development Limited · 2026 Interim Report