Strong Capital Operations and Financing Innovation

• Record-setting Bond Issuance: The Company completed a tap issuance of US\$500 million bonds, achieving the “largest historical yield tightening” and “narrowest public bond spread on record” for its offshore bonds. This highlights robust investor demand and improved credit standing.
• Pioneering Digital Bonds: Successfully launched the first US\$40 million public blockchain-native digital USD notes among Chinese corporates, entering Hong Kong’s digital bond market and diversifying funding channels. This opens new liquidity sources and enhances the Company’s innovation credentials.
• Strategic Investment Exit: The Company exited the Horizon project with a total return of 95.39%, realizing gains of approximately RMB148 million. This demonstrates strong investment management and the ability to generate significant returns for shareholders.

Synergistic Empowerment and Ecosystem Value Release

• Value Creation Philosophy: The Company emphasizes value creation through synergistic empowerment, not only supporting its controlled enterprises but also fostering collaboration within the ecosystem.
• Operational Efficiency: Internal control, post-investment management, and cost control have been enhanced, with all loss-making subsidiaries turned profitable. This is expected to have a positive effect on future earnings and governance standards.
• Digital Transformation: The Company is leveraging digital intelligence to boost efficiency and cost management across the group.

Commitment to ESG and Sustainable Development

• ESG Integration: The Company is embedding ESG considerations into strategy and operations, with a focus on transparency and technical specifications for carbon measurement, supporting China’s “dual carbon” goals.
• Green Finance and Investment: Through its subsidiary SHNE, the Company is advancing clean energy industry development, integrating “finance + industry” and supporting national energy security priorities.

2026 Outlook: Strategic Focus on Green Power and Quality Growth

• National Policy Alignment: 2026 marks the start of China’s 15th Five-Year Plan, with green and low-carbon development as core themes.
• Expansion in Green Power: The Company aims to accelerate centralized project development and distributed energy, prioritizing asset quality and replicable demonstrations in transportation-energy integration.
• Capital Structure Optimization: The Company will actively use equity financing and green bonds, focus on core asset integration, and maintain flexible capital management to fuel industrial development.

Risk Management and Governance Enhancements

• Comprehensive Risk Management: The Company maintains a risk register covering strategic, reputation, liquidity, credit, market, legal, HR, and operational risks, with annual assessments and mitigation measures in place.
• Liquidity & Financing Risk: The Company monitors liquidity closely and arranges funds for all maturing debts in advance. Financing channels are diversified to guard against cost increases or disruptions.
• Equity Price Risk: A 15% change in equity prices would have a material impact on profits due to the Company’s exposure to listed equities, especially outside Hong Kong.
• Public Sentiment & Market Risk: Proactive media monitoring and brand communication strategies are in place to manage reputation risk.

Corporate Actions and Share Structure

• Share Buybacks: In September 2025, the Company repurchased 3,700,000 shares (~0.06% of issued shares) at an average price of HK\$6.11, which are held as treasury shares. This signals management’s confidence in the Company’s value and is potentially price-supportive.
• Dividend Policy: No dividend is declared for 2025, in line with the Company’s policy of balancing shareholder returns and future growth needs. The Board retains discretion and considers financial results, reserves, capital requirements, and other factors.
• Public Float & Shareholding Concentration: The SFC issued a notice in September 2025 regarding significant concentration of shareholding in a limited number of shareholders. The Company continues to monitor and affirms compliance with public float requirements, but this concentration could affect share liquidity and price volatility.

Auditor’s Opinion and Financial Reporting

• Unqualified Audit Opinion: Crowe (HK) CPA Limited issued an unqualified opinion on the 2025 consolidated financial statements, confirming compliance with HKFRS and Hong Kong Companies Ordinance.
• No Change in Auditor: The Company has kept the same auditor for the past three years, reinforcing stability and continuity in financial reporting.
• Transparency and Disclosure: The Company updates its website regularly and maintains open communication with shareholders through meetings and public disclosures.

Key Accounting and Policy Changes

• Adoption of New HKFRS Standards: Amendments to HKAS 21 “Lack of Exchangeability” were adopted, with no material impact on current or prior years. Future changes (HKFRS 18, etc.) are expected to affect the presentation/disclosure of financial statements but not the underlying results.

Share Options and Incentives

• Share Option Scheme: The Company maintains an equity-settled share option scheme, with clear limits and approval requirements, supporting long-term alignment with management and staff.

Summary for Investors

Potential Share Price Movers:

• Entry into Hong Kong’s digital bond market and innovations in financing are significant and may attract new investors.
• The strategic exit from the Horizon project with high returns, and the turnaround of loss-making subsidiaries, signal strong management execution.
• Share buybacks and SFC’s notice on shareholding concentration could lead to share price volatility or re-rating.
• No dividend for 2025 may disappoint yield-focused investors, but signals reinvestment for growth.
• Heavy focus on green and low-carbon initiatives aligns with government policies and could attract ESG-focused funds.