2026/03/30 Hengdeli Announces 2025 Annual Results Forge ahead while maintaining sound, steady, and long-term operations

In 2025, the global economic situation remained complex, with the global economy continuing to be under pressure due to uncertainties such as continued geopolitical risks, increased trade barriers, and escalated trade frictions. Against the backdrop of a complex external environment, the Chinese economy maintained steady growth, driven by policy support and endogenous momentum, underscoring its strong resilience and positive trajectory. Confronted with the complicated and changing environment, the Group continued to adhere to the principle of "pursuing stability while maintaining sound, steady, and long-term operations", closely monitored changes in the macro situation, and gained in-depth insight into market demand and trends, so as to maintain stability while pursuing development, making every effort to safeguard the interests of its shareholders.

For the year ended 31 December 2025, the Group recorded revenue of RMB648,953,000 (31 December 2024: RMB1,043,555,000), representing a year-on-year decrease of 37.8%; high-end consuming accessories business recorded revenue of RMB579,409,000 (31 December 2024: RMB688,104,000), representing a year-on-year decrease of 15.8%; international commodity trading recorded revenue of RMB69,544,000 (31 December 2024: RMB355,451,000), representing a year-on-year decrease of 80.4%. The Group recorded a loss of approximately RMB24,173,000 (31 December 2024: loss of RMB55,472,000) and loss attributable to equity shareholders amounted to approximately RMB26,901,000 (31 December 2024: loss of RMB65,161,000). The loss for the year was mainly attributable to a decline in sales, a shift from profit to loss in the share of associates, a decrease in bank interest income, as well as the combined impact of factors such as impairment loss of trade receivables.

During the year under review, affected by the shrinking demand in the industry as a whole and the fluctuation of the international market, the development of the Group's high-end consuming accessories business continued to be under pressure, and its sales revenue declined on a year-on year basis. In the face of challenges, the Group actively expanded its business model, developed new customers and new products, and continuously improved its operational efficiency and management level through measures such as technological innovation, process optimization, informatization and automation upgrade. Through the above efforts, the results of various measures have gradually emerged, laying a solid foundation for future business recovery and growth.

During the year under review, the international commodity trading business of the Group mainly covered the importation of iron ore, thermal coal and coking coal to Mainland China. Due to the complex operating environment such as trade barriers and tightening policies in export destinations, the international commodity trading business recorded a year-on-year decrease in terms of both sales and profits. In

recent years, the Group developed its logistics business and build a bulk cargo transshipment logistics park in Mexico, which integrates customs clearance, import, transportation and warehousing, and is dedicated to serving large-scale enterprises in China.

In 2025, the global trade in dry bulk cargo was characterized by "stable rather than breakthrough". The shipping market was affected by geopolitics and trade frictions, showing a complicated situation of "strong demand but weak shipping costs". There was a corresponding pullback in both revenue and profit of the Group's shipping business. Facing the turbulence and uncertainty in the market, the Group adhered to the prudent and stable operation strategy, adhered to the operation of its own fleet as the core, and actively leveraged on its experience and advantages in traditional shipping routes to focus on serving the long-term transportation needs of key customers. In terms of vessel management, the maintenance team implemented more refined management, and strictly controlled the selection, recruitment, training and assessment of seafarers to ensure the safe and smooth navigation of vessels, while focusing on optimizing operation and docking costs, so as to improve the competitiveness of the Group's fleet escort.

In the new year, the Group will continue to adhere to its principle of "pursuing stability while maintaining sound, steady, and long-term operations", and will leverage the stable and favorable business development environment in Mainland China to keep abreast the market dynamics and further advance the process of international trade in a prudent and steady manner. Additionally, the Group will continue to deepen its layout and expansion of its international shipping business uphold its position as a highly competitive participant in the international shipping supply chain and achieve new breakthroughs in corporate development.

The Group will continue to strive for sustainable business development, adapt to market demands and continuously enhance the service standard of its integrated services for commercial space in both Mainland China and international markets. The Group will continuously adjust the manufacturing strategy of high-end accessories manufacturing for renowned watches while embarking on a limited number of diversified business activities to include the manufacturing of high-end consuming accessories in high-end lifestyle products such as jewellery, cosmetics and mobile phones, and to expand its commercial space beautification services to include living space beautification services, thus becoming an indispensable independent segment in the industry ecological chain of high-end consuming accessories.

Breakdown of Revenue

Hengdeli Holdings Limited

Hengdeli Holdings Limited (the "Company" or "Hengdeli") and its subsidiaries (collectively as the "Group"), the Group's business was primarily focused on the manufacturing of high-end consuming accessories, building up of high-end consuming service platforms, international commodity trading and its relevant supply chain services. The Group's shareholders include: the Zhang family; the reputable watch manufacturer and distributor SWATCH Group.

The Group owns a number of high-end consuming accessories manufacturing enterprises, covering the manufacturing of watches, jewellery, cosmetics, mobile phones and accessories and packaging products, commercial space design, production and decoration, serving customers throughout the greater China region, Asia Pacific and other countries and regions such as Switzerland and the United States.

The Group engaged in international commodity trading business, which covers importing iron ore, thermal coal and coking coal to Mainland China., and it is also equipped with relevant supply chain services, customers served included world-renowned mines and China's large-scale state-owned enterprises and listed companies.

The Company has been listed on the Main Board of the Hong Kong Stock Exchange since 2005 under stock code 3389. The abbreviated stock name is: Hengdeli.

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For enquiries, please contact:

Ms. Gao Shi +852 2921 9667 / 5399 9035 shi.gao@hengdeli.com.hk

Fax: +852 2375 8010

Ms. Kelly Fung +852 3150 6763 / 9289 2974 kelly.fung@pordahavas.com