China Wan Tong Yuan (Holdings) Limited reported a solid turnaround for the six months ended 30 June 2026, reversing last year’s interim loss on the back of stronger burial‐service demand and the absence of one-off tax costs.

Financial Highlights • Revenue rose 57.4% year on year to RMB17.42 million (2025 interim: RMB11.07 million). • Gross profit expanded 73.0% to RMB14.11 million, lifting the gross margin to 81.0% from 73.7% a year earlier. • Profit attributable to owners reached RMB1.32 million versus a RMB9.39 million loss in the prior-year period, translating into basic EPS of RMB0.10 cents (2025 interim: loss per share of RMB0.90 cents). • The Board proposed no interim dividend, unchanged from last year. • Cash and cash equivalents stood at RMB149.84 million at period-end, down RMB8.59 million from end-2025, but the balance sheet remains debt-free, with a gearing ratio of 32.4% (31 Dec 2025: 32.9%).

Operational Performance 1. Burial plots and related services – Revenue surged 73.7% to RMB14.28 million, accounting for 82.0% of group turnover. – Segment gross margin improved to 81.9% (1H25: 72.3%). – Growth reflected higher plot sales and the absence of VAT revaluation payments that weighed on the prior-year base.

2. Cemetery maintenance services – Revenue increased 10.7% to RMB3.14 million. – Segment margin moderated to 77.2% (1H25: 84.8%).

3. Funeral services – No revenue recorded (1H25: RMB2,000), as the business remained minimal.

Cost & Expense Dynamics • Cost of sales grew 13.6% to RMB3.31 million, well below revenue growth, supporting margin expansion. • Distribution and selling expenses fell 24.0% to RMB3.52 million due to lower headcount. • Administrative expenses were broadly stable at RMB6.26 million. • Other expenses dropped sharply to RMB0.44 million (1H25: RMB5.32 million) after last year’s VAT surcharges. • Fair-value loss on financial assets at FVTPL narrowed to RMB0.21 million from RMB2.73 million.

Cash Flow & Investments • Operating activities generated RMB1.72 million of net cash (1H25 outflow: RMB7.89 million). • Net investing cash outflow of RMB10.18 million reflected RMB10.42 million deployed into Huatai USD Money Market Fund A units and RMB0.29 million spent on cemetery landscape facilities. • Capital expenditure commitments for cemetery assets stood at zero as of 30 June 2026.

Balance Sheet Snapshot • Total assets were RMB315.33 million; net assets rose marginally to RMB213.04 million. • Financial assets at FVTPL increased to RMB11.95 million, mainly due to the Huatai money-market investment.

Strategic and Operational Developments • The joint-venture cemetery project in Langfang remains pending regulatory approvals amid evolving funeral-industry policies. Management continues discussions with authorities to finalise the construction permit and action plan. • With bank balances and cash of RMB179.84 million, management views liquidity as sufficient to fund future project requirements. • The group is enhancing digital “Cloud Tomb-sweeping” services, broadening burial offerings, and strengthening ties with local authorities for columbarium storage projects.

Outlook Management intends to deepen its presence in Langfang, pursue expansion within the Jing-Jin-Ji region, and continue developing the JV Cemetery Project once approvals are secured. No guidance was provided on the timing of these milestones.