Huazhang Technology Holding Limited (“Huazhang Tech”) reported its audited results for the year ended 30 June 2026.

Financial Highlights • Revenue rose 7.15 % to RMB 460.74 million. • Gross profit increased 14.33 % to RMB 84.66 million; gross margin improved to 18.4 % from 17.2 %. • Loss for the year widened 86.32 % to RMB 21.32 million, reflecting a negative margin of 4.6 % (FY-2025: −2.7 %). • Basic and diluted loss per share expanded to RMB 1.34 cents (FY-2025: RMB 0.72 cents). • No final dividend was proposed.

Segment Performance Industrial Products: Revenue fell 22.2 % to RMB 212.0 million, yet margin improved to 21.1 % after tighter cost controls. Project Contracting Services: Revenue surged 104.4 % to RMB 196.33 million; margin eased to 20.2 %. Environmental Products: Revenue grew 77.0 % to RMB 16.97 million with a 38.7 % margin. Supporting Services: Revenue dropped 28.3 % to RMB 33.0 million; margin slid to 5.0 %. Property Investment: Rental income declined 57.5 % to RMB 2.44 million, generating a segment loss of RMB 9.39 million.

Cost Structure • Selling and distribution expenses increased 12.1 % to RMB 12.97 million. • Administrative expenses were broadly flat at RMB 61.03 million. • R&D spending decreased 10.6 % to RMB 21.13 million, equal to 4.6 % of revenue. • Net impairment losses on financial and contract assets rose to RMB 3.36 million. • Net finance costs expanded to RMB 3.08 million, driven by lower interest income and higher foreign-exchange losses. • Other income and gains swung to a net loss of RMB 1.73 million (FY-2025: gain of RMB 19.54 million) after higher contractual-claim provisions and lower disposal gains.

Balance Sheet and Liquidity As at 30 June 2026: • Total assets: RMB 1.02 billion (+6.1 %). • Cash, bank fixed deposits and pledged deposits: RMB 215.93 million. • Interest-bearing loans: RMB 59.99 million (down from RMB 98.08 million). • Gearing ratio improved to 13.3 % (30 June 2025: 19.1 %). • Net assets stood at RMB 392.71 million. • Inventories increased to RMB 201.02 million; contract liabilities rose to RMB 215.39 million, while contract assets fell to RMB 47.86 million.

Capital Expenditure and Commitments Capex declined to RMB 0.75 million (FY-2025: RMB 5.04 million). The Group reported no material capital commitments at year-end.

Equity Funding During FY-2026 the Company utilised HK$73.12 million of the HK$104.5 million net proceeds from the April 2024 open offer, mainly to reduce bank borrowings. Approximately HK$31.38 million remains earmarked for expansion of industrial automation and related services. Net proceeds of HK$100 million from the March 2021 specific-mandate share subscription remain largely unspent, with HK$3.80 million temporarily used as working capital.

Operational Developments The order book stood at RMB 455.6 million, underpinned by contracts such as Guangxi Jianhui’s PM7 permanent-magnet direct-drive transmission and APP Jindong’s PM6 specialty paper line. Multiple projects for Sun Paper, WanGuo Sun Paper and ND Paper progressed to commissioning or production, supporting future revenue flows. The Group advanced R&D in permanent-magnet direct-drive systems, intelligent control and high-end headboxes, filing six additional patents during the year.

Outlook Management expects continued opportunities from equipment upgrades, energy-efficiency mandates and demand for localized, intelligent paper-making solutions, while noting that raw-material costs and customer investment cycles remain key uncertainties. The Group plans to leverage its mechatronic integration strengths, deepen partnerships and expand in Southeast Asia, the Middle East and other Belt-and-Road markets.

Dividend No dividend was declared for FY-2026.

Audit and Governance The results have been reviewed by the Audit Committee and agreed by auditor KTC Partners CPA Limited. The Board confirms compliance with the Corporate Governance Code, with the exception of combining chairman and chief executive roles.

The annual general meeting is scheduled for 27 November 2026. The FY-2026 annual report will be available on the HKEX and company websites in due course.