Profit Restored, Driven by Phase-Change Energy Business

(5 March 2026, Hong Kong) Huiyuan Cowins Technology Group Limited (“Huiyuan Cowins Technology”, together with its subsidiaries, the “Group”; stock code: 1116.HK) is pleased to announce its interim results for the six months ended 31 December 2025 (the “Period”). During the Period, the Group recorded revenue of approximately RMB454 million, representing a year-on-year increase of 14.9%. Gross profit amounted to approximately RMB47.65 million, up 6.9% year-on-year. Profit attributable to owners of the Company was approximately RMB1.34 million, representing a turnaround from a loss in the corresponding period of the previous year. Basic earnings per share were RMB0.06 cents, marking a significant improvement in performance.

Strong Growth from Emerging Business; PCM Technology Drives Industrial Upgrade

Through coordinated development across multiple business lines, the Group maintained stability in its traditional carbon steel and stainless steel segments while accelerating growth in emerging areas, including direct drinking water, phase-change materials (PCM), and facility agriculture. The energy storage business, bolstered by supportive national policies and the Group’s technological strengths, has emerged as a key growth driver with substantial market potential.

• Breakthrough in cold-chain transportation: The Group pioneered the use of PCM in China to create a long-lasting phase change cold chain vehicle. Temperature control and cold storage last for up to 120 hours, and the cost of cold storage and preservation can be reduced by up to 60%, offering innovation value for agricultural and pharmaceutical logistics.

• Industrial waste-heat recovery: The “AI intelligent multi-heat source waste heat recovery application project”, the first of its kind in the industry nationwide, was launched in Huailai Zero-Carbon Agriculture Demonstration Park in November 2025. The heat generated during data center operation supplies to the surrounding Phalaenopsis orchid greenhouses and Jinqiu Jiayuan community for heating, replacing the traditional gas boiler heating. According to an assessment by SinoCarbon Innovation and Investment, during the heating season from November 2024 to March 2025, the project cumulatively saved a total of 838.94 tons of standard coal, reduced carbon dioxide emissions by 1,048.69 tons, and achieved a water saving rate of 56.61% and reduced costs by 58.63%.

• Facility agriculture benchmark project: The nation’s first application case of a “phase change energy storage multi-energy complementary ultra-low energy consumption intelligent greenhouse” was implemented in Sanya, Hainan, enabling efficient year-round cultivation in tropical conditions.

In addition, the Group, through its subsidiary Guangzhou Mayer, entered into a memorandum of understanding with UK-based Environmental Process Systems Limited (EPS), to further strengthen technological leadership and expand application scenarios in central air-conditioning, data centers, and cold-chain storage.

Direct Drinking Water: Supported by Policy and Rising Demand

Stricter regulations and growing public health awareness have created strong opportunities in the direct drinking water sector. The GB5749-2022 national “Standards for Drinking Water Quality” has raised entry barriers, while local governments increasingly prioritize direct drinking water in key livelihood projects. The Group has completed several direct drinking water projects, including the piped direct drinking water system for Guangdong Radio and Television, which achieved benchmark recognition and commenced operations in December 2025, serving the daily water needs of over 4,000 people. Meanwhile, the direct drinking water project for the Guangdong Expressway Fokai Branch is currently under construction.

Traditional Business: Steady Performance Amid Structural Opportunities

Despite industry challenges such as overcapacity and declining steel prices, structural opportunities persist. The transition from 5G to 6G is driving increased demand for data storage and related server chassis, supporting at least 5–10 years of growth in the Group’s carbon steel segment. Limited high-end coated product processing capacity in Vietnam and Thailand also creates export opportunities for the Group’s domestic production.

In stainless steel business, the Group has adopted flexible pricing strategies and expanded its international presence in Hong Kong, Australia, and New Zealand, enhancing brand recognition and growth momentum.

Strategic Outlook: Broad Development Prospects Ahead

Looking ahead, the Group will continue to align with national policies, enhance quality and efficiency in its core businesses, and pursue high-quality development across multiple segments. It will increase investment in research and development, as well as the industrialization of PCM energy storage technologies, to expand application scenarios, strengthen competitive advantages, and establish a new growth engine.

Its subsidiary, Guangzhou Mayer, has been recognized with more than 70 honours, including National High-Tech Enterprise, National “Little Giant” Enterprise, National CNAS Accredited Laboratory, Guangdong Province Green Factory, Outstanding Enterprise in New Quality Productive Forces, featured enterprise in CCTV’s “Strong Country Intelligent Manufacturing” program, and one of the Top 10 Leading Enterprises in the 2025 Economy. It also holds 45 technological patents, fully demonstrating the Group’s outstanding capabilities in technological research and industrial upgrading. In the future, the Group will continue to drive industrial upgrading through scientific and technological innovation, deliver long-term and stable value to shareholders, and make greater contributions to achieving the national carbon neutrality goal.

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About Huiyuan Cowins Technology Group Limited

Huiyuan Cowins Technology Group Limited (stock code: 1116.HK) has been deeply engaged in the steel pipe and steel sector for over 30 years and is a benchmark brand in China's stainless steel water pipe industry, with full-chain capabilities in “independent R&D – production manufacturing”. Its main businesses cover stainless steel water pipes and fittings, carbon steel plate shearing, pipeline direct drinking water solutions, and extend to the phase change energy storage technology field.

Since 2023, the Group has accelerated its expansion into the energy storage business, focusing on the R&D and production of phase-change energy storage materials (PCM), providing customized cold storage and heat storage solutions for customers in various industries. The company was listed on the Main Board of The Stock Exchange of Hong Kong Limited in 2004. For more details, please visit its official company website: https://www.hctechgp.com.