On August 25, 2025, BINHAI INV (02886) held its 2025 interim results presentation at Conrad Hong Kong, engaging in positive discussions with approximately 20 institutional investors. The briefing was attended by Deputy General Manager and Company Secretary Mr. Yin Fugang, General Manager of Securities Division and Executive Director Ms. Wang Meili, and Securities Division Director Wu Tingyuan, who provided detailed insights into the Group's 2025 interim operating performance and latest developments in core business operations. They conducted comprehensive discussions with investors on topics including the rapid development of value-added services, margin improvement, and financing cost reduction.

For the first half of 2025, BINHAI INV achieved total revenue of HK$2.931 billion and net profit attributable to shareholders of HK$173 million, representing a 3% year-on-year increase. Affected by the warm winter this spring, the company achieved total natural gas sales volume of 1.14 billion cubic meters. The gross margin showed significant recovery, reaching RMB 0.50 per cubic meter. While first-quarter gas sales volume faced pressure, second-quarter total gas sales volume grew 13% year-on-year, demonstrating that excluding the warm winter effect, BINHAI INV's gas sales business remains in rapid growth.

**Double Growth in Value-Added Services Revenue and Profit**

In 2025, value-added services were formally incorporated into core business operations and continued to maintain rapid growth, with revenue and gross profit reaching HK$37.67 million and HK$25.40 million respectively, both up 7% year-on-year. The gas appliance sales business benefited from the launch of the proprietary brand "Taiyuejia" products, with gross margin surging 13 percentage points year-on-year to 49.2%. The overall comprehensive gross margin for value-added services remained stable.

Value-added services have newly added kitchen renovation business, which is expected to align with current Chinese household needs and will further enhance the profitability of value-added services. Additionally, the meeting revealed that value-added services will launch on e-commerce platforms in the second half of the year, opening online sales channels, which is expected to boost revenue levels.

**Refined Operations Drive Profit Growth**

BINHAI INV has spared no effort in cost reduction. Starting last year, the company built an integrated upstream and downstream industrial chain, and this year further optimized its gas source structure to reduce gas procurement costs. In the first half of 2025, the company's urban gas average gross margin increased by RMB 0.07 per cubic meter year-on-year to RMB 0.50 per cubic meter. Gas source costs were reduced by approximately RMB 9.32 million in the first half.

Meanwhile, BINHAI INV further refined financial management to reduce comprehensive financing costs. In the first half, BINHAI INV reduced financing costs by HK$29.14 million through repaying high-interest offshore RMB loans and replacing high-interest loans with low-interest alternatives. The Group's comprehensive financing rate for the first half of 2025 was 4.67%, down approximately 82 basis points year-on-year.

In the current environment where the industry is undergoing profound transformation and market competition is intensifying, we are facing more opportunities and challenges. The Group will continue to consolidate and expand advantages in its core gas business, accelerate the expansion of value-added services, comprehensively improve operational efficiency and quality, and actively promote the implementation of comprehensive energy demonstration projects to lay a solid foundation for transformation into a comprehensive energy service provider. The company is confident in continuously optimizing performance and creating richer investment returns for shareholders.