HXTL FY2025 Turns to RMB42.50 Million Net Loss; AGM Seeks 20% Issue Mandate Renewal and Up-to-10% Share Buy-back

Bulletin Express04-29

Hengxin Technology Ltd. (HXTL) released its FY2025 audited results and circulated AGM resolutions, highlighting a swing to a net loss and outlining key authorisations up for shareholder approval on 29 May 2026.

Financial Performance • Revenue fell 10.8 % year on year to RMB2.25 billion, driven by softer sales across telecommunications (-15 %), partially offset by growth in integrated-circuits and digital-technology (+12 %) and new-energy (+10 %). • Gross profit slipped 1.0 % to RMB462.67 million; group gross margin improved to 20.6 % (FY2024: 18.5 %) on a richer mix. • The group posted a net loss of RMB42.50 million versus FY2024’s RMB73.32 million profit, mainly due to a RMB67.96 million withholding-tax charge on PRC dividends and higher finance costs (+11.6 % to RMB57.45 million). • Cash and cash equivalents stood at RMB402.64 million (-53.3 % Y/Y), while interest-bearing bank loans rose to RMB1.90 billion. The debt-to-assets ratio increased to 53 % (FY2024: 50 %). • Total assets were RMB4.93 billion; total equity attributable to shareholders was RMB1.52 billion.

Segment Highlights • Telecommunications: Revenue RMB1.77 billion (-15.3 %), segment profit before tax RMB42.05 million. • New Energy & Services: Revenue RMB205.20 million (+10.3 %), segment profit before tax RMB12.82 million. • Integrated Circuits & Digital Technology: Revenue RMB267.06 million (+12.1 %), segment profit before tax RMB17.57 million.

AGM Agenda – 29 May 2026, Hong Kong 1. Re-election of five directors: Cui Wei, Peng Yinan, Lau Fai Lawrence, Lin Ting and Chan Hon Chung Johnny. 2. Directors’ remuneration capped at HKD2.80 million for FY2026 (FY2025: HKD3.13 million). 3. Re-appointment of Rongcheng (Hong Kong) CPA Limited and RSM SG Assurance LLP as Hong Kong and Singapore auditors, with indicative FY2026 fees of RMB2.2-2.4 million and SGD0.095-0.11 million respectively. 4. Renewal of 20 % general share issue mandate in line with Hong Kong Listing Rules. 5. New 10 % share purchase mandate allowing repurchase of up to 46.56 million shares during the mandate period. Maximum price limits: 105 % of five-day average for on-market buys and 120 % for off-market purchases. 6. Poll voting will be used for all resolutions.

Capital Structure & Other Details • Issued share capital: 465.60 million ordinary shares; no treasury shares held. • A total of 2.33 million shares are held by the company’s share-award scheme trustee and will abstain from voting. • No final dividend proposed for FY2025.

Shareholders whose names appear on the registers by 4:30 p.m. on 22 May 2026 (Hong Kong time) are eligible to attend and vote at the AGM.

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