Hilong (1623) investor relations material

Executive summary

• Revenue for the six months ended 30 June 2026 increased by 1.4% year-over-year to RMB2,355.9 million, with significant growth in oilfield services offsetting declines in other segments.

• Gross profit surged 60.1% to RMB642.7 million, driven by improved margins and cost controls.

• Net profit attributable to equity owners was RMB59.9 million, reversing a loss of RMB324.2 million in the prior year period.

• The Board declared an interim dividend of HKD0.003 per share.

Financial highlights

• Gross profit margin rose to 27.3%, up 10 percentage points year-over-year.

• Cost of sales decreased by 10.8% to RMB1,713.2 million.

• Net finance costs dropped 46.8% to RMB53.7 million, aided by foreign exchange gains.

• Basic earnings per share were RMB0.0365, compared to a loss per share of RMB0.1911 last year.

• Cash and cash equivalents stood at RMB605.1 million, with a gearing ratio of 32.67%.

Outlook and guidance

• The company aims to expand in high-end international markets, focusing on the US, Middle East, Southeast Asia, and South America.

• Plans include broadening product offerings, enhancing digital and intelligent management, and increasing high-tech business penetration.

• Oilfield services will target new growth in Africa, Central and South America, and Europe, with a focus on turnkey projects and technology-driven solutions.

• Offshore engineering will strengthen project management and digital delivery, targeting new projects and efficiency gains.