Horizon Construction Development Limited — Earnings Release 2025

Apr 14, 2025

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss arising from or in reliance upon the whole or any part of the contents of this announcement.

宏信建設發展有限公司

HORIZON CONSTRUCTION DEVELOPMENT LIMITED

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 9930)

UNAUDITED OPERATION SUMMARY FOR THE FIRST QUARTER OF 2025 AS AT 31 MARCH 2025

This announcement sets out the unaudited operation summary of Horizon Construction Development Limited (the "Company") and its subsidiaries (the "Group") for the first quarter ended 31 March 2025 (the "Period under Review").

This announcement is made in accordance with the requirements of Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

In the first quarter of 2025, with the resumption of operations by various industries in China after the Chinese New Year holiday, the utilization rate of the Group's major equipment categories continued to rise (among them, the utilization rate of aerial work platforms at the end of this quarter was approximately 78%). The Group's total revenue for the first quarter maintained growth as compared to that for the same period of the previous year, with revenue from overseas operations growing significantly as compared to that for the same period of the previous year, accounting for more than 15% of the total revenue. At the same time, the Group's business was typically slow around the Chinese New Year holiday and as a result, the profit attributable to ordinary shareholders for the first quarter showed a seasonal loss. However, the loss for this first quarter did not increase as compared to that for the same period of the previous year, which demonstrated the Group's sound cost control capability.

As at the end of the Period under Review, the Group's total number of service outlets was 579, where the number of outlets in mainland China and Hong Kong decreased to 520 from 528 at the end of the previous year, while the number of overseas outlets increased to 59 from 53 at the end of the previous year.

During the Period under Review, the Group continued to optimize its asset structure and prudently controlled the scale of capital expenditure. In respect of the existing equipment, the Group disposed of some inefficient domestic equipment or transferred them to overseas markets in accordance with the established operation guidelines in the first quarter, and at the same time appropriately downsized the management scale of non-self-owned equipment. On the other hand, in respect of the new equipment, the Group incurred capital expenditure of approximately RMB350 million during the Period under Review, most of which was incurred for the purchasing of equipment for its overseas operations. The Group believes that the expected rate of return on the newly acquired assets from these capital expenditures is significantly higher than the Group's average level of rate of return on the current assets, which will contribute to the Group's overall return on assets performance to some extent.

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Looking forward to the full year, despite the ongoing market pressure, the Group will prioritize maintaining a healthy and stable financial structure and improve its operating performance at domestic and overseas markets in order to create value for its shareholders.

CAUTION STATEMENT

The board of directors (the "Board") of the Company hereby reminds investors that the above operation summary for the first quarter ended 31 March 2025 is based on the Group's internal information and management accounts which are not reviewed or audited by auditors. Such statistics may differ from the figures disclosed in the audited or unaudited consolidated financial statements of the Company issued on an annual or half-year basis. Accordingly, the above statistics is preliminary in nature and for investors' reference only. Investors are advised to exercise caution in dealing in the shares of the Company.

Words such as "may", "could", "will", "expect", "intend", "estimate", "anticipate", "believe", "plan", "seek", "continue" or similar expressions in this announcement are forward-looking statements. These forward-looking statements are not guarantees of future performance. Rather, they are based on current views and assumptions and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Group and are difficult to predict, that will or may cause actual results to differ materially from any future results or developments expressed or implied from the forward-looking statements. Such risks and uncertainties include the effects of volatility in domestic and international financial markets and macro-economics, economic conditions in individual markets in which the Group operates, and other factors affecting the level of the Group's business activities and the costs and availability of financing for the Group's activities. Any forward-looking statements contained in this announcement should not be taken as a representation that such trends or activities will continue in the future. No statement in this announcement is intended to be a profit forecast or to imply that the earnings of the Group as at the date of this announcement or in future will necessarily match or exceed the historical or published earnings of the Group. Each forward-looking statement speaks only as of the date of the particular statement. The Group expressly disclaims any obligation or undertaking to release publicly any updated information or revisions to any forward-looking statements contained herein to reflect any change in the Group's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

By Order of the Board

Horizon Construction Development Limited

KONG Fanxing

Chairman

Hong Kong, 14 April 2025

As at the date of this announcement, the executive directors of the Company are Mr. ZHAN Jing (Chief Executive Officer) and Mr. TANG Li, the non-executive directors of the Company are Mr. KONG Fanxing (Chairman), Mr. XU Huibin, Mr. HE Ziming, Mr. YUAN Shaozhen and Ms. GUO Lina, and the independent non-executive directors of the Company are Mr. LIU Jialin, Mr. XU Min, Ms. JIN Jinping and Mr. SUM Siu Kei.