Group 1 - The core viewpoint of the article highlights that Tongtong AI Social (00628.HK) reported significant revenue growth and profit increase for the six months ending June 30, 2025 [1] - The company achieved a revenue of RMB 203 million, representing a year-on-year increase of 233.3% [1] - The profit attributable to the owners of the company was RMB 31.876 million, which is a year-on-year increase of 26.1% [1] - The basic earnings per share were RMB 0.0061 [1]

[Summary](index=1&type=section&id=Summary) The company reported a significant 233.4% revenue increase, but profit before tax and profit for the period declined sharply, while profit attributable to owners rose 26.1% with no interim dividend recommended Overview of Core Financial Indicators (For the six months ended June 30, 2025) | Indicator | H1 2025 (thousand RMB) | H1 2024 (thousand RMB) | Change | Change % | | :--- | :--- | :--- | :--- | :--- | | Revenue | 202,700 | 60,800 | +141,900 | +233.4% | | Profit Before Tax | 7,000 | 33,600 | -26,600 | -79.2% | | Profit for the Period | 2,500 | 25,400 | -22,900 | -90.2% | | Profit Attributable to Owners of the Company | 31,900 | 25,300 | +6,600 | +26.1% | | Basic Earnings Per Share | RMB 0.61 cents | RMB 0.89 cents | -0.28 cents | -31.5% | - The Board does not recommend the payment of any interim dividend for the current interim period, consistent with the corresponding period[5](index=5&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=2&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) Revenue for the period surged by **233.4% to 202,677 thousand RMB**, but profit before tax and profit for the period significantly decreased, primarily due to a sharp rise in administrative and marketing expenses; however, profit attributable to owners of the company increased by **26.1%** Key Data from Condensed Consolidated Statement of Profit or Loss (thousand RMB) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | 202,677 | 60,804 | | Other Income and Other Gains and Losses | 17,553 | (3,631) | | Administrative Expenses | (89,595) | (15,847) | | Marketing Expenses | (119,338) | (5,849) | | Profit Before Tax | 7,018 | 33,596 | | Profit for the Period | 2,546 | 25,388 | | Profit Attributable to Owners of the Company | 31,876 | 25,275 | | Basic Earnings Per Share | RMB 0.61 cents | RMB 0.89 cents | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Profit for the period significantly decreased, and due to exchange differences from functional currency translation and overseas operations, total comprehensive expense for the period was **16,886 thousand RMB**, compared to comprehensive income of **33,613 thousand RMB** in the prior period Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (thousand RMB) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit for the Period | 2,546 | 25,388 | | Exchange Differences Arising from Translation of Functional Currency to Presentation Currency | (17,192) | 7,499 | | Exchange Differences Arising from Translation of Overseas Operations | (2,240) | 726 | | Total Comprehensive (Expense) / Income for the Period | (16,886) | 33,613 | | Total Comprehensive (Expense) / Income Attributable to Owners of the Company | 14,558 | 32,975 | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets slightly increased, with a significant rise in intangible assets within non-current assets, while current liabilities surged, leading to a slight decrease in net current assets and total equity Key Data from Condensed Consolidated Statement of Financial Position (thousand RMB) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Non-Current Assets | 1,168,042 | 1,125,393 | | Total Current Assets | 1,509,133 | 1,482,098 | | Total Current Liabilities | 143,759 | 81,587 | | Net Current Assets | 1,365,374 | 1,400,511 | | Total Assets Less Current Liabilities | 2,533,416 | 2,525,904 | | Total Non-Current Liabilities | 87,790 | 60,837 | | Total Equity | 2,445,626 | 2,465,067 | - Intangible assets increased from **286,695 thousand RMB** as of December 31, 2024, to **323,958 thousand RMB** as of June 30, 2025, primarily due to business combinations and other intangible asset expenditures[8](index=8&type=chunk)[32](index=32&type=chunk) - Contract liabilities significantly increased from **10,154 thousand RMB** as of December 31, 2024, to **43,361 thousand RMB** as of June 30, 2025, mainly from subscription revenue, financial information service revenue, and digital content service revenue[8](index=8&type=chunk)[41](index=41&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [1 Company Information and Basis of Preparation](index=6&type=section&id=1%20Company%20Information%20and%20Basis%20of%20Preparation) The company is incorporated in Bermuda and listed on the HKEX, primarily engaged in investment holding, with subsidiaries covering digital internet platforms, digital content ecosystems, and FinTech services; financial statements are presented in RMB, prepared in accordance with HKAS 34 and Listing Rules - The Company's principal business is investment holding, with subsidiaries engaged in digital internet platform business, digital content ecosystem business, and FinTech services[10](index=10&type=chunk) - The condensed consolidated financial statements are presented in **RMB** and prepared in accordance with **Hong Kong Accounting Standard 34** and the applicable disclosure requirements of the **Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited**[10](index=10&type=chunk)[11](index=11&type=chunk) [2 Accounting Policies](index=7&type=section&id=2%20Accounting%20Policies) The condensed consolidated financial statements are prepared on a historical cost basis, with the first-time application of revised HKFRS accounting standards in the current period having no significant impact on financial position or performance; digital content service revenue is recognized using a time-based output method, proportional to the contract period - New and revised Hong Kong Financial Reporting Standards accounting standards applied in the current interim period have **no significant impact** on the Group's financial position and performance[13](index=13&type=chunk) - Digital content service revenue, such as platform-based digital marketing services, is recognized using a time-based output method, proportional to the contract period (typically one to three months)[14](index=14&type=chunk) [3 Segment Operating Information](index=8&type=section&id=3%20Segment%20Operating%20Information) The Group updated its segment reporting from March 18, 2025, to better reflect its latest business strategy, now comprising three reportable segments: Digital Internet Platform Business, Digital Content Ecosystem Business, and FinTech Services Business; the Digital Content Ecosystem Business contributes the most revenue, but the Digital Internet Platform Business incurred significant losses - As of March 18, 2025, the Group's segment reporting has been updated to include Digital Internet Platform Business, Digital Content Ecosystem Business, and FinTech Services Business[16](index=16&type=chunk) H1 2025 Segment Revenue and Results (thousand RMB) | Segment | Revenue from External Customers | Segment Results | | :--- | :--- | :--- | | Digital Internet Platform Business | 11,923 | (42,488) | | Digital Content Ecosystem Business | 131,074 | 2,835 | | FinTech Services Business | 59,680 | 39,589 | | **Total** | **202,677** | **(64)** | - In H1 2025, the Digital Content Ecosystem Business was the primary source of revenue, the FinTech Services Business contributed most of the segment results, while the Digital Internet Platform Business recorded a significant loss[19](index=19&type=chunk) Segment Assets and Liabilities (thousand RMB) | Segment | Segment Assets as of June 30, 2025 | Segment Liabilities as of June 30, 2025 | | :--- | :--- | :--- | | Digital Internet Platform Business | 122,317 | 164,523 | | Digital Content Ecosystem Business | 779,434 | 42,963 | | FinTech Services Business | 1,355,994 | 8,752 | | **Total** | **2,257,745** | **216,238** | [4 Revenue, Other Income and Other Gains and Losses](index=13&type=section&id=4%20Revenue,%20Other%20Income%20and%20Other%20Gains%20and%20Losses) Revenue for the period significantly increased to **202,677 thousand RMB**, primarily driven by advertising services, top-up services, and subscription revenue; other income decreased, but a significant increase in exchange gains offset some losses Revenue Source Analysis (thousand RMB) | Revenue Category | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Interest Income from Accounts Receivable Factoring Loans | 40,123 | 39,172 | | Advertising Service Income | 41,719 | 255 | | Top-up Service Income | 88,200 | 5,718 | | Subscription Income | 11,923 | – | | Digital Content Service Income | 1,155 | – | | Financial Information Service Income | 19,557 | 15,659 | | **Total Revenue** | **202,677** | **60,804** | Other Income and Gains/Losses (thousand RMB) | Category | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Bank Interest Income | 766 | 2,973 | | Bargain Purchase Gain | 37 | – | | Exchange Gains / (Losses) | 16,709 | (6,978) | | **Total** | **17,553** | **(3,631)** | [5 Profit Before Tax](index=14&type=section&id=5%20Profit%20Before%20Tax) Profit before tax significantly decreased, mainly due to a substantial increase in employee benefit expenses, depreciation of right-of-use assets, and amortization of intangible assets Profit Before Tax Deductions (thousand RMB) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Employee Benefit Expenses | 50,950 | 7,498 | | Depreciation of Property, Plant and Equipment | 194 | – | | Depreciation of Right-of-Use Assets | 4,065 | 580 | | Amortization of Intangible Assets | 14,549 | – | [6 Finance Costs](index=14&type=section&id=6%20Finance%20Costs) Finance costs significantly increased from **7 thousand RMB** to **2,169 thousand RMB**, primarily due to higher interest expenses on borrowings Finance Costs Analysis (thousand RMB) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Interest Expense on Borrowings | 1,950 | – | | Interest Expense on Lease Liabilities | 219 | 7 | | **Total** | **2,169** | **7** | [7 Income Tax Expense](index=15&type=section&id=7%20Income%20Tax%20Expense) Income tax expense decreased from **8,208 thousand RMB** to **4,472 thousand RMB**, mainly due to a reduction in China corporate income tax - The Group did not generate taxable profits in Hong Kong, and estimated taxable profits generated in mainland China are provided at a tax rate of **25%**[26](index=26&type=chunk) Income Tax Expense Analysis (thousand RMB) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Current Tax – China Corporate Income Tax | 3,992 | 7,749 | | Deferred Tax | 480 | 459 | | **Total Tax Expense for the Period** | **4,472** | **8,208** | [8 Dividends](index=15&type=section&id=8%20Dividends) The Board does not recommend the payment of any interim dividend for the current interim period, consistent with the prior year - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025[28](index=28&type=chunk) [9 Earnings Per Share](index=15&type=section&id=9%20Earnings%20Per%20Share) Basic earnings per share decreased from **RMB 0.89 cents** to **RMB 0.61 cents**, despite an increase in profit attributable to owners of the company, due to a significant increase in the weighted average number of ordinary shares outstanding Basis for Basic Earnings Per Share Calculation | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit Attributable to Ordinary Equity Holders of the Company for Basic EPS Calculation (thousand RMB) | 31,876 | 25,275 | | Weighted Average Number of Ordinary Shares Outstanding (thousand shares) | 5,201,123 | 2,838,486 | | **Basic Earnings Per Share** | **RMB 0.61 cents** | **RMB 0.89 cents** | - Diluted earnings per share are not presented as the Company had no dilutive potential ordinary shares during the interim period[30](index=30&type=chunk) [10 Right-of-Use Assets and Intangible Assets](index=16&type=section&id=10%20Right-of-Use%20Assets%20and%20Intangible%20Assets) Both right-of-use assets and intangible assets significantly increased during the period due to business combinations and new lease agreements; intangible assets primarily include mobile software and technology, amortized on a straight-line basis over five years - For the six months ended June 30, 2025, the Group acquired **1,224 thousand RMB** in right-of-use assets through business combinations and recognized **8,618 thousand RMB** in right-of-use assets due to renewals and new lease agreements[31](index=31&type=chunk) - For the six months ended June 30, 2025, the Group acquired **4,079 thousand RMB** in intangible assets through business combinations and incurred **48,447 thousand RMB** in other intangible asset expenditures; intangible assets include mobile software and technology, amortized on a straight-line basis over five years[32](index=32&type=chunk) [11 Trade and Loan Receivables](index=17&type=section&id=11%20Trade%20and%20Loan%20Receivables) Total trade and loan receivables increased to **1,401,150 thousand RMB**, primarily driven by commercial factoring loans receivable; the aging structure of trade receivables shows a high proportion of short-term receivables, and all receivables and loans are neither past due nor credit-impaired Overview of Trade and Loan Receivables (thousand RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Commercial Factoring Loans Receivable | 1,346,054 | 1,281,656 | | Trade Receivables | 72,148 | 59,309 | | Provision for Expected Credit Losses | (17,052) | (14,944) | | **Total** | **1,401,150** | **1,326,021** | - Commercial factoring loans receivable have terms ranging from **90 to 360 days**, with effective interest rates between **6% and 7.5% per annum**; as of the reporting period end, all commercial factoring loans receivable were not yet due[33](index=33&type=chunk) Aging Analysis of Trade Receivables (thousand RMB) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 to 30 days | 29,693 | 57,449 | | 31 to 60 days | 18,102 | 1,278 | | 61 to 90 days | 18,146 | 386 | | Over 90 days | 6,207 | 196 | - As of June 30, 2025, and December 31, 2024, none of the Group's trade and loan receivables were credit-impaired[34](index=34&type=chunk) [12 Prepayments, Deposits and Other Receivables](index=19&type=section&id=12%20Prepayments,%20Deposits%20and%20Other%20Receivables) Total prepayments amounted to **403,006 thousand RMB**, with the majority arising from the acquisition of Tianjin Guanchuang Meitong E-commerce Co., Ltd., which is still pending approval; Mr. Huang Guangyu has provided a personal guarantee for the recoverability of the prepayments, and management believes no further impairment is needed Overview of Prepayments, Deposits and Other Receivables (thousand RMB) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Prepayments Arising from Acquisition of Tianjin Guanchuang | 576,000 | 576,000 | | Impairment Loss | (208,000) | (208,000) | | **Total Carrying Amount** | **403,006** | **393,592** | - Prepayments of **576,000 thousand RMB** for the acquisition of Tianjin Guanchuang are pending approval from the People's Bank of China, and the change of actual controller has not yet been completed[37](index=37&type=chunk) - Mr. Huang Guangyu has provided a personal guarantee, committing to make up any shortfall by **December 31, 2026**, if the transaction cannot be completed and the funds cannot be recovered[38](index=38&type=chunk) - Management believes the recoverable amount of prepayments is higher than their carrying amount, and no impairment of prepayments needs to be recognized in profit or loss[39](index=39&type=chunk) [13 Trade Payables](index=21&type=section&id=13%20Trade%20Payables) Trade payables increased to **37,867 thousand RMB**, primarily due within 30 days, with an average credit period of 60 days; the Group ensures all payables are settled within their credit terms Aging Analysis of Trade Payables (thousand RMB) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 to 30 days | 23,942 | 23,484 | | 31 to 60 days | 11,943 | – | | 61 to 90 days | 959 | – | | Over 90 days | 1,023 | 68 | | **Total** | **37,867** | **23,552** | - Trade payables are non-interest bearing, with an average credit period of **60 days**, and the Group ensures all payables are settled within their credit terms[40](index=40&type=chunk) [14 Contract Liabilities](index=22&type=section&id=14%20Contract%20Liabilities) Contract liabilities significantly increased to **43,361 thousand RMB**, primarily from advance payments related to subscription revenue, financial information service revenue, and digital content service revenue Sources of Contract Liabilities (thousand RMB) | Source | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Subscription Income | 34,338 | 9,712 | | Financial Information Service Income | 633 | 442 | | Digital Content Service Income | 8,390 | – | | **Total** | **43,361** | **10,154** | - Contract liabilities represent proceeds received in advance from customers related to subscription revenue, financial information service revenue, and digital content service revenue, expected to be settled within the normal operating cycle[41](index=41&type=chunk) [15 Borrowings](index=22&type=section&id=15%20Borrowings) Total borrowings increased to **84,315 thousand RMB**, mainly from loans from independent third parties and additional borrowings acquired through business combinations, all unsecured and incurring finance costs at an annual interest rate of 6% - Borrowing balances include principal amounts of **70,737 thousand RMB** from independent third parties (2024: **55,128 thousand RMB**), incurring finance costs at an annual interest rate of **6%**, repayable in **2027**[43](index=43&type=chunk) - Additional loan principal of **7,586 thousand RMB** was acquired through business combinations, incurring finance costs at an annual interest rate of **6%**, repayable in **2028**[43](index=43&type=chunk) - All borrowings are unsecured by any of the Group's assets or guarantees[43](index=43&type=chunk) [16 Share Capital](index=23&type=section&id=16%20Share%20Capital) The company's issued share capital remained unchanged during the interim period at **5,201,123 thousand shares**, amounting to **45,824 thousand RMB**; a capital reorganization was completed in June 2024, involving capital reduction and share subdivision, and new shares were issued due to subsidiary acquisitions Issued and Fully Paid Share Capital (thousand shares/thousand HKD) | Item | Number of Shares (thousand shares) | Amount (thousand HKD) | | :--- | :--- | :--- | | As of January 1, 2024 | 2,701,123 | 230,159 | | Capital Reduction | – | (207,143) | | Shares Issued upon Acquisition of Subsidiaries | 2,500,000 | 22,808 | | **As of June 30, 2025** | **5,201,123** | **45,824** | - A capital reorganization was completed on **June 21, 2024**, including the reduction of par value per share from **HK$0.1 to HK$0.01** and the subdivision of unissued shares[44](index=44&type=chunk)[46](index=46&type=chunk) - Following the capital reorganization, the issuance of **2,500,000,000 ordinary shares** due to subsidiary acquisitions resulted in credits of **22,808 thousand RMB** to the share capital account and **499,495 thousand RMB** to the share premium account, respectively[46](index=46&type=chunk) [17 Contingent Liabilities](index=24&type=section&id=17%20Contingent%20Liabilities) As of June 30, 2025, and December 31, 2024, the Group had no significant contingent liabilities - The Group had **no significant contingent liabilities** at the end of the reporting period[45](index=45&type=chunk) [Management Discussion and Analysis](index=25&type=section&id=Management%20Discussion%20and%20Analysis) [Overview](index=25&type=section&id=Overview) The Group accelerated its digital transformation and business diversification by deepening its "Technology + Finance" integrated internet strategy, achieving a **233.4% revenue increase to 202,700 thousand RMB**, primarily driven by the acquisitions of CashBox and Beijing Liheng Group; despite a decline in profit before tax, profit attributable to owners of the company increased due to non-controlling interests absorbing losses, and the Group will continue to develop its digital internet ecosystem business for multi-domain synergy - The Group is primarily engaged in Digital Internet Platform Business, Digital Content Ecosystem Business, and FinTech Services Business[47](index=47&type=chunk) - Revenue for the interim period significantly increased by **233.4% to 202,700 thousand RMB**, mainly attributable to the acquisitions of CashBox Group Technology (Hong Kong) Limited (**129,900 thousand RMB**) and Beijing Liheng Group (**11,900 thousand RMB**), as well as the steady growth of commercial factoring and other financial services businesses[48](index=48&type=chunk)[49](index=49&type=chunk) - Profit before tax significantly decreased by **79.2% to 7,000 thousand RMB**, primarily due to a substantial increase in staff costs (**43,500 thousand RMB**) and amortization of intangible assets (**14,500 thousand RMB**) resulting from Beijing Liheng Group's business expansion, partially offset by increased exchange gains[48](index=48&type=chunk)[49](index=49&type=chunk) - Profit attributable to owners of the company increased to **31,900 thousand RMB**, mainly because a significant portion of Beijing Liheng Group's losses was borne by non-controlling interests[50](index=50&type=chunk) - The Group successfully expanded into internet social and digital content domains through the Beijing Liheng contractual arrangement, Beijing Yiheng contractual arrangement, and Beijing Jiayu contractual arrangement[51](index=51&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk) [Industry Environment](index=29&type=section&id=Industry%20Environment) In H1 2025, the Hong Kong capital market recovered, China's economy grew steadily, and policies continued to promote inclusive and technology-driven finance; the financial services sector transformed through regulation and technology integration, with deepening blockchain applications; the internet industry accelerated "quality leap" with AI large models empowering various sectors, and Web3.0-AI convergence fostering decentralized ecosystems; in the digital content ecosystem, games and short dramas saw explosive growth, with China's overseas micro-short drama market growing nearly fourfold year-on-year - In H1 2025, China's economy showed a "generally stable, structurally differentiated" trend, with policies continuously promoting the development of inclusive finance and FinTech[57](index=57&type=chunk) - The financial services industry accelerated its digital transformation, with blockchain technology enabling full-process traceability in supply chain finance, and Hong Kong laying the foundation for cross-border payments through the **"Stablecoin Bill"**[58](index=58&type=chunk) - The internet industry accelerated its transformation towards a "quality leap," with policies promoting the **"AI+" initiative**, AI large models empowering various industries, and the convergence of Web3.0 and AI fostering decentralized ecosystems[58](index=58&type=chunk) - In the digital content ecosystem, games and short dramas became core growth engines; China's micro-short drama market size is estimated to reach **63.43 billion RMB** in 2025, with the number of overseas market applications growing nearly **fourfold year-on-year**[59](index=59&type=chunk)[60](index=60&type=chunk) [Business Review](index=31&type=section&id=Business%20Review) The Group expanded its digital content ecosystem business through the acquisitions of CashBox and Beijing Yiheng Group, showing strong performance in game development and publishing and gaining market attention for short drama production; the digital internet platform business developed social commerce platforms and commercial ecosystem collaboration platforms through the acquisitions of Beijing Liheng Group and Beijing Jiayu Group, with over 1.8 million registered users; the FinTech services business maintained stable growth in commercial factoring and other financial services revenue [Digital Content Ecosystem Business](index=31&type=section&id=Digital%20Content%20Ecosystem%20Business) The Group successfully expanded its digital content ecosystem business through the acquisitions of CashBox and Beijing Yiheng Group; CashBox demonstrated strong performance in game development and publishing, having developed and released over **500 games** and recorded **129,900 thousand RMB** in revenue; Beijing Yiheng Group focuses on producing high-quality short dramas, collaborating deeply with multiple platforms, and recorded **1,200 thousand RMB** in revenue - The Group acquired CashBox and Beijing Yiheng Group between **June 2024 and March 2025** to achieve business diversification[61](index=61&type=chunk) - CashBox has developed and released over **500 games**, with users in **100+ countries**, recording revenue of **129,900 thousand RMB**[62](index=62&type=chunk) - Beijing Yiheng Group focuses on the high-quality short drama segment, collaborating deeply with platforms such as Hongguo Short Drama, iQiyi Micro-Short Drama, and Douyin, recording revenue of **1,200 thousand RMB**[63](index=63&type=chunk) [Digital Internet Platform Business](index=33&type=section&id=Digital%20Internet%20Platform%20Business) The Group expanded its digital internet platform business through the acquisitions of Beijing Liheng Group and Beijing Jiayu Group, including social commerce platforms and commercial ecosystem collaboration platforms; Beijing Liheng Group's "Tongtong APP" and "Lehuo Universe App" have accumulated over **1.8 million registered users**, with approximately **65,000 paying users**, generating **11,900 thousand RMB** in revenue; Beijing Jiayu Group focuses on cross-merchant asset interoperability and has achieved ecosystem integration with "Tongtong APP" - The Group acquired Beijing Liheng Group through the Beijing Liheng contractual arrangement, focusing on social networking, artificial intelligence, e-commerce, information technology services, and technology research and development[64](index=64&type=chunk) - Beijing Liheng Group's platforms have accumulated over **1,800,000 registered users**, of whom approximately **65,000 users** have paid for subscriptions, generating revenue of **11,900 thousand RMB**[67](index=67&type=chunk) - The Group completed the acquisition of Beijing Jiayu Group through the Beijing Jiayu contractual arrangement, focusing on cross-merchant asset interoperability and achieving ecosystem integration with the Tongtong APP[69](index=69&type=chunk) [FinTech Services Business](index=35&type=section&id=FinTech%20Services%20Business) The Group's FinTech services business includes commercial factoring and other financial services; commercial factoring loan amounts increased to **1,028,100 thousand RMB**, with revenue rising to **40,100 thousand RMB** and stable segment results; other financial services revenue increased to **19,600 thousand RMB**, primarily due to business promotion efforts - Commercial factoring loan amounts increased to **1,028,100 thousand RMB**, with revenue increasing to **40,100 thousand RMB**, and segment results of **34,400 thousand RMB**[71](index=71&type=chunk) - The interest rate charged to commercial factoring borrowers slightly decreased, ranging from **6.0% to 7.5%**, consistent with market rates[71](index=71&type=chunk) - Other financial services revenue increased to **19,600 thousand RMB**, primarily due to enhanced business promotion efforts[72](index=72&type=chunk) [Financial Review](index=37&type=section&id=Financial%20Review) The Group's revenue significantly increased by **233.4% to 202,700 thousand RMB**, primarily driven by the acquisitions of CashBox and Beijing Liheng Group; however, a surge in administrative and marketing expenses led to a substantial decline in profit before tax; business segment performance was mixed, with the Digital Content Ecosystem Business contributing the most revenue, the FinTech Services Business showing stable growth, and the Digital Internet Platform Business incurring losses due to expansion; the credit risk management system is robust, with a **0% non-performing loan ratio** [Performance Summary](index=37&type=section&id=Performance%20Summary) Revenue for the interim period significantly increased by **233.4% to 202,700 thousand RMB**, mainly from the CashBox acquisition (**129,900 thousand RMB**), Beijing Liheng Group acquisition (**11,900 thousand RMB**), and FinTech services business expansion; profit before tax decreased to **7,000 thousand RMB**, primarily affected by increased staff costs, intangible asset amortization, and marketing expenses; despite this, profit attributable to owners of the company grew due to non-controlling interests absorbing losses - Revenue significantly increased by **233.4% to 202,700 thousand RMB**, primarily from the CashBox acquisition (**129,900 thousand RMB**), Beijing Liheng Group acquisition (**11,900 thousand RMB**), and FinTech services business expansion[73](index=73&type=chunk)[74](index=74&type=chunk) - Other income (bank interest income) decreased to **800 thousand RMB**, but exchange gains of **16,700 thousand RMB** arose from the appreciation of RMB against HKD[75](index=75&type=chunk) - Administrative expenses increased by **73,800 thousand RMB to 89,600 thousand RMB**, mainly due to staff costs (increase of **43,500 thousand RMB**), intangible asset amortization (increase of **14,500 thousand RMB**), and increased service fees[76](index=76&type=chunk) - Marketing expenses increased to **119,300 thousand RMB**, primarily comprising advertising and promotion expenses, technical service fees, etc., from CashBox, Beijing Liheng Group, and Beijing Yiheng Group[77](index=77&type=chunk) - Finance costs increased to **2,200 thousand RMB**, mainly related to non-bank borrowings of Beijing Liheng Group[78](index=78&type=chunk) - Profit attributable to owners of the company increased to **31,900 thousand RMB**, mainly because a significant portion of Beijing Liheng Group's substantial losses was borne by non-controlling interests[79](index=79&type=chunk) [Digital Content Ecosystem Business Segment Analysis](index=40&type=section&id=Digital%20Content%20Ecosystem%20Business%20Segment%20Analysis) Total revenue for the Digital Content Ecosystem Business significantly increased to **131,074 thousand RMB**, primarily contributed by CashBox's online advertising and top-up services, as well as Beijing Yiheng Group's digital content service revenue; net operating expenses increased significantly, but the segment still recorded a profit Digital Content Ecosystem Business Operating Results (thousand RMB) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Total Revenue | 131,074 | 5,973 | | Net Operating Expenses | (128,137) | (5,801) | | Segment Results | 2,835 | 172 | - CashBox's online advertising services and top-up services accounted for **31.8% and 67.3%**, respectively, of the Digital Content Ecosystem Business's total revenue[81](index=81&type=chunk) - Beijing Yiheng Group's digital content service revenue was **1,200 thousand RMB**[81](index=81&type=chunk) [Digital Internet Platform Business Segment Analysis](index=41&type=section&id=Digital%20Internet%20Platform%20Business%20Segment%20Analysis) The Digital Internet Platform Business generated **11,923 thousand RMB** in revenue, but due to increased R&D, personnel, and marketing costs from Beijing Liheng Group's business expansion, the segment recorded a significant loss of **53,809 thousand RMB** Digital Internet Platform Business Operating Results (thousand RMB) | Indicator | H1 2025 | | :--- | :--- | | Revenue | 11,923 | | Net Operating Expenses | (65,732) | | Segment Results (excluding inter-segment transactions) | (53,809) | - The segment recorded a significant loss due to increased R&D, personnel, and related costs from Beijing Liheng Group's expanded business scope, while products are not yet fully mature[84](index=84&type=chunk) [FinTech Services Business Segment Analysis](index=42&type=section&id=FinTech%20Services%20Business%20Segment%20Analysis) FinTech services business revenue grew steadily, with commercial factoring business revenue increasing to **40,123 thousand RMB** and segment results of **34,430 thousand RMB**; other financial services revenue increased to **19,557 thousand RMB**, with segment results of **16,480 thousand RMB**; the total loan return rate decreased, but the non-performing loan ratio remained **0%**, indicating robust risk management Commercial Factoring Business Operating Results (thousand RMB) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | 40,123 | 39,172 | | Net Operating Expenses | (3,685) | (3,072) | | Segment Results (excluding inter-segment transactions) | 34,430 | 34,226 | Other Financial Services Business Operating Results (thousand RMB) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | 19,557 | 15,659 | | Net Operating Expenses | (3,077) | (2,249) | | Segment Results (excluding inter-segment transactions) | 16,480 | 13,410 | Key Indicators for Commercial Factoring Business | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Total Loan Return (Revenue as % of Average Total Loan Balance) | 6.12% | 7.16% | | Loan Loss Provision Ratio (Impairment Provision as % of Total Loan Balance) | 1.22% | 1.14% | | Non-Performing Loan Ratio | 0.00% | 0.00% | - The decrease in total loan return is mainly due to the People's Bank of China continuously lowering the Loan Prime Rate, leading the Group to also adjust its commercial factoring loan interest rates to align with market conditions[92](index=92&type=chunk) - The non-performing loan ratio remained at **0%**, and the provision coverage ratio remained above **100%** or was not applicable, indicating that provisions fully cover the total balance of all non-performing loans[93](index=93&type=chunk) [Provision for Expected Credit Losses](index=47&type=section&id=Provision%20for%20Expected%20Credit%20Losses) During the interim period, a provision for expected credit losses of **2,000 thousand RMB** was made for commercial factoring business and **100 thousand RMB** for game development and publishing business; the total provision at period-end increased to **17,052 thousand RMB** Changes in Provision for Expected Credit Losses on Trade and Loan Receivables (thousand RMB) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | As of January 1 | 14,944 | 11,473 | | Impairment Provision Recognized | 10,733 | 7,710 | | Reversal of Impairment Loss | (8,625) | (5,836) | | **As of June 30** | **17,052** | **13,347** | [Credit Policy and Credit Approval Procedures](index=47&type=section&id=Credit%20Policy%20and%20Credit%20Approval%20Procedures) The Group has established stringent credit policies and approval procedures, including due diligence by the business department, review and analysis by the risk audit department, and approval by the Credit Review Committee; the finance department is responsible for signing, disbursing, and collecting payments, with standard collection procedures in place to ensure loan quality and risk control - The Group has established credit policies and approval procedures, including due diligence by the business department, review and analysis by the risk audit department, and approval by the Credit Review Committee[95](index=95&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk) - The finance department is responsible for loan signing, disbursement, and collection, with standard collection and recovery procedures in place, allowing for legal action against borrowers with overdue or delinquent repayments[98](index=98&type=chunk)[99](index=99&type=chunk) - Commercial factoring loans have credit terms ranging from **90 to 360 days**, with effective annual interest rates between **6.0% and 7.5%**; during the interim period, no trade and loan receivables from commercial factoring services business were overdue[100](index=100&type=chunk)[102](index=102&type=chunk) [Assessment of Equity Value Corresponding to Prepayments Arising from Acquisitions](index=50&type=section&id=Assessment%20of%20Equity%20Value%20Corresponding%20to%20Prepayments%20Arising%20from%20Acquisitions) The Group prepaid **576,000 thousand RMB** to OPCO for the acquisition of Tianjin Guanchuang, but the transaction is delayed due to pending approval from the People's Bank of China; Mr. Huang Guangyu has provided a personal guarantee to cover any shortfall if the transaction fails; management believes Tianjin Guanchuang is crucial for the Group's business development and will continue to pursue approvals, with no further impairment of prepayments currently deemed necessary - The Group has prepaid **576,000 thousand RMB** for the acquisition of **100% equity interest** in Tianjin Guanchuang Meitong E-commerce Co., Ltd., but the transaction has not yet received approval from the People's Bank of China[103](index=103&type=chunk) - Mr. Huang Guangyu has provided a personal guarantee, committing to make up any shortfall to the Group with his personal assets by **December 31, 2026**, if the transaction ultimately cannot be completed and the funds cannot be recovered[106](index=106&type=chunk) - Management believes Tianjin Guanchuang will bring more development opportunities and synergies to the Group and will continue to actively pursue approval procedures; currently, the estimated recoverable amount of prepayments is higher than their carrying amount, and no further impairment is needed[105](index=105&type=chunk)[107](index=107&type=chunk) [Outlook](index=52&type=section&id=Outlook) The Group will continue to strengthen its technological empowerment and risk control capabilities, exploring new paths for integrated "Technology + Finance" development; in terms of business layout, it will focus on innovations in financial services such as cross-border payments, promote the international expansion of its digital internet business, and deepen the synergy among its three major business segments—FinTech services, digital content ecosystem, and digital internet platform—to address challenges and achieve steady growth - The Group will continue to strengthen its technological empowerment and risk control capabilities, exploring new paths for integrated "Technology + Finance" development[108](index=108&type=chunk) - In terms of business layout, the Group will focus on innovation opportunities in financial services such as cross-border payments, explore enhancing the efficiency of cross-border capital flows through technological upgrades, and timely promote the international expansion of its digital internet business[109](index=109&type=chunk) - The Group will deepen the synergy among its three major business segments: FinTech services, digital content ecosystem, and digital internet platform, strengthening risk identification and technical safeguards, and improving operational compliance to lay a solid foundation for steady growth in the second half of the year[109](index=109&type=chunk) [Liquidity and Financial Resources](index=54&type=section&id=Liquidity%20and%20Financial%20Resources) [Liquidity and Financial Resources](index=54&type=section&id=Liquidity%20and%20Financial%20Resources) The Group maintains a sound financial position, but cash and cash equivalents decreased to **73,000 thousand RMB**, primarily due to business expansion costs of Beijing Liheng Group and an increase in commercial factoring loan scale; the current ratio decreased to **10.5**, and the debt-to-asset ratio increased to **9.15%** - The Group's total equity was **2,445,600 thousand RMB**, and cash and cash equivalents decreased to **73,000 thousand RMB**[110](index=110&type=chunk) - The decrease in cash balance was mainly due to increased R&D, personnel, and related costs from Beijing Liheng Group's business expansion, as well as an increase in the scale of commercial factoring loans[110](index=110&type=chunk) Cash Flow Overview (thousand RMB) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Cash Outflow from Operating Activities | (9,100) | (89,100) | | Cash Outflow from Investing Activities | (47,600) | (7,700) | | Cash Inflow from Financing Activities | 14,600 | (700) | Liquidity Ratios | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Ratio | 10.5 | 18.2 | | Debt-to-Asset Ratio | 9.15% | 5.25% | [Capital Structure](index=55&type=section&id=Capital%20Structure) [Capital Structure](index=55&type=section&id=Capital%20Structure) The company's issued share capital remained unchanged during the interim period, maintaining **5,201,123,120 shares** - The number of issued ordinary shares of the Company remained at **5,201,123,120 shares** as of June 30, 2025[113](index=113&type=chunk) [Significant Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=55&type=section&id=Significant%20Acquisitions%20and%20Disposals%20of%20Subsidiaries,%20Associates%20and%20Joint%20Ventures) [Significant Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=55&type=section&id=Significant%20Acquisitions%20and%20Disposals%20of%20Subsidiaries,%20Associates%20and%20Joint%20Ventures) Apart from the Beijing Yiheng contractual arrangement and Beijing Jiayu contractual arrangement, the Group had no other significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the interim period - Apart from the Beijing Yiheng contractual arrangement and Beijing Jiayu contractual arrangement, the Group had no other significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the interim period[114](index=114&type=chunk) [Material Investments](index=55&type=section&id=Material%20Investments) [Material Investments](index=55&type=section&id=Material%20Investments) As of June 30, 2025, the Group had no material investments - As of June 30, 2025, the Group had **no material investments**[115](index=115&type=chunk) [Pledge of Assets and Contingent Liabilities](index=55&type=section&id=Pledge%20of%20Assets%20and%20Contingent%20Liabilities) [Pledge of Assets and Contingent Liabilities](index=55&type=section&id=Pledge%20of%20Assets%20and%20Contingent%20Liabilities) As of June 30, 2025, the Group had no pledged assets or significant contingent liabilities - As of June 30, 2025, the Group had **no pledged assets or significant contingent liabilities**[116](index=116&type=chunk) [Treasury Policy and Foreign Exchange Risk](index=55&type=section&id=Treasury%20Policy%20and%20Foreign%20Exchange%20Risk) [Treasury Policy and Foreign Exchange Risk](index=55&type=section&id=Treasury%20Policy%20and%20Foreign%20Exchange%20Risk) The Group adopts a prudent treasury policy, closely monitoring its liquidity position and customer financial conditions; all bank deposits are in HKD, RMB, and USD; the Group has not adopted any hedging policy but will continue to monitor foreign exchange risk and consider hedging measures when necessary - The Group adopts a prudent treasury policy, with all bank deposits held in **HKD, RMB, and USD**[117](index=117&type=chunk) - The Group has not adopted any hedging policy, but the executive directors and management will continue to monitor foreign exchange risk and consider hedging measures when necessary[117](index=117&type=chunk) [Staff and Remuneration](index=56&type=section&id=Staff%20and%20Remuneration) [Staff and Remuneration](index=56&type=section&id=Staff%20and%20Remuneration) As of June 30, 2025, the Group's total number of employees increased to **630**; employee remuneration (excluding directors and chief executive) for the interim period was **50,300 thousand RMB**, and staff training was conducted in a timely manner - As of June 30, 2025, the Group employed a total of **630 staff** (December 31, 2024: **381 staff**)[118](index=118&type=chunk) - Employee remuneration (excluding remuneration for directors and chief executive) for the interim period was **50,300 thousand RMB** (corresponding period: **6,500 thousand RMB**)[118](index=118&type=chunk) - The Group pays social insurance and mandatory provident fund contributions for employees in accordance with applicable laws in China and Hong Kong, and conducts relevant staff training in a timely manner[118](index=118&type=chunk) [Interim Dividend](index=56&type=section&id=Interim%20Dividend) [Interim Dividend](index=56&type=section&id=Interim%20Dividend) The directors do not recommend the payment of any interim dividend for the current interim period, consistent with the prior year - The directors do not recommend the payment of any interim dividend for the current interim period[119](index=119&type=chunk) [Compliance with Corporate Governance Code](index=56&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) [Compliance with Corporate Governance Code](index=56&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company has complied with the Corporate Governance Code during the interim period, except for the unseparated roles of Chairman and Chief Executive; the Chief Executive's role is performed by the Operating Management Committee, and the Board will review and consider appointing a suitable candidate - The Company has complied with the Corporate Governance Code throughout the interim period, except that the roles of Chairman and Chief Executive are not separated[120](index=120&type=chunk) - The role of Chief Executive is performed by the Operating Management Committee (comprising executive directors), and the Board will review and consider appointing a suitable candidate from time to time[121](index=121&type=chunk) [Standard Securities Dealing Code for Directors](index=57&type=section&id=Standard%20Securities%20Dealing%20Code%20for%20Directors) [Standard Securities Dealing Code for Directors](index=57&type=section&id=Standard%20Securities%20Dealing%20Code%20for%20Directors) Upon inquiry with all directors, it is confirmed that they have complied with the Standard Code as set out in Appendix C3 of the Listing Rules throughout the interim period - All directors confirmed compliance with the Standard Code as set out in Appendix C3 of the Listing Rules throughout the interim period[122](index=122&type=chunk) [Purchase, Redemption or Sale of the Company's Listed Securities](index=57&type=section&id=Purchase,%20Redemption%20or%20Sale%20of%20the%20Company's%20Listed%20Securities) [Purchase, Redemption or Sale of the Company's Listed Securities](index=57&type=section&id=Purchase,%20Redemption%20or%20Sale%20of%20the%20Company's%20Listed%20Securities) Neither the company nor any of its subsidiaries purchased, redeemed, or sold any of the company's listed securities during the interim period, nor did they hold any treasury shares - Neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities during the interim period, nor did they hold any treasury shares[123](index=123&type=chunk) [Audit Committee](index=58&type=section&id=Audit%20Committee) [Audit Committee](index=58&type=section&id=Audit%20Committee) The Audit Committee comprises four members, including three independent non-executive directors and one non-executive director, with Chairman Mr. Mak Yau Kee possessing appropriate financial and accounting professional qualifications; the committee has reviewed the Group's unaudited interim results for the current interim period - The Audit Committee comprises four members, including three independent non-executive directors and one non-executive director, with Chairman Mr. Mak Yau Kee possessing appropriate financial and accounting professional qualifications[124](index=124&type=chunk) - The Audit Committee met with management on **August 27, 2025**, to review accounting standards and practices and the Group's unaudited interim results for the current interim period[124](index=124&type=chunk) [Publication of Financial Information](index=58&type=section&id=Publication%20of%20Financial%20Information) [Publication of Financial Information](index=58&type=section&id=Publication%20of%20Financial%20Information) This results announcement has been published on the HKEX website and the company's website, and the interim report containing all information will be available for viewing at the appropriate time - This results announcement has been published on the HKEX website (www.hkexnews.hk) and the Company's website (www.00628.hk.com)[125](index=125&type=chunk) - The Company's interim report for the current interim period, containing all information required by the Listing Rules, will be available for viewing on the aforementioned websites at the appropriate time[125](index=125&type=chunk)

Group 1 - The core point of the article is that Tongtong AI Social (00628.HK) has announced a new agreement with Gome Xinda and the borrower Ningbo Multilateral Huishang International Trade Co., Ltd., which will take effect on August 26, 2025, when the previous agreement expires [1] - Under the new agreement, Gome Xinda can provide factoring loans to the borrower during the term, with the total outstanding balance not exceeding RMB 210 million [1]

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 佈 之 內 容 概 不 負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公佈全部 或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 Tong Tong AI Social Group Limited 通 通 AI 社 交 集 團 有 限 公 司 （於百慕達註冊成立之有限公司） （股份代號：628） – 1 – 新協議 新協議之主要條款載列如下。 日期 二零二五年八月二十六日 訂約方： 須予披露交易 就提供保理貸款 與寧波多邊惠商國際貿易有限公司訂立新框架協議 茲提述本公司日期為二零二二年八月二十六日之公佈，內容有關根據先前協議 向借款人提供保理貸款。 由於先前協議之年期將於二零二五年八月二十六日屆滿，於二零二五年八月二 十六日，國美信達與借款人訂立新協議，據此，國美信達可於年期內不時向借 款人提供保理貸款，惟於年期內不時之尚未償還餘額總額不得超過人民幣2.1億 元。 由於根據新協議擬進行交易有關之上市規則第14.07條之最高適用百分比率高於 5 %但低於25 %，訂立 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告 全部或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責 任。 董事會會議召開日期 通 通 AI 社交集團有限公司 Tong Tong AI Social Group Limited （於百慕達註冊成立之有限公司） （股份代號：628） 香港，二零二五年八月十九日 於本公告日期，本公司執行董事為周亞飛先生及宋晨曦先生；非執行董事為 魏婷女士及吳茜女士；以及獨立非執行董事為麥佑基先生、羅文鈺教授及黃 嵩教授。 通通AI社交集團有限公司（「本公司」）董事（「董事」）會（「董事會」）宣佈，本公司 將於二零二五年八月二十九日（星期五）舉行董事會會議，藉以（其中包括）考 慮及批准本公司及其附屬公司截至二零二五年六月三十日止六個月之未經審 核中期業績及其刊發、考慮派發中期股息的建議（如有）及處理任何其他事項。 承董事會命 通通AI社交集團有限公司 主席 周亞飛 ...

截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 通通AI社交集團有限公司 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 第 1 頁 共 10 頁 v 1.1.1 FF301 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00628 | 說明 | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | 5,201,123,120 | | 0 | | 5,201,123,120 | | 增加 / 減少 (-) | | | 0 | | | | | | 本月底結存 | | | 5,201,123,120 | | 0 | | 5,201,123,120 | 第 2 頁 ...

Financial Performance - For the fiscal year ending December 31, 2024, the company reported a revenue increase of 222.1%, rising from RMB 82 million in the previous year to RMB 264.1 million[13]. - The company's profit before tax also saw a significant increase of 47.1%, from RMB 46.1 million to RMB 67.8 million[13]. - The company recorded a profit attributable to owners of RMB 39,600,000, an increase from RMB 37,000,000 in the corresponding period, primarily due to significant revenue growth and reduced financial costs[17]. - The group recorded an operating profit of RMB 67,800,000, compared to RMB 46,100,000 in the corresponding period, with net profit attributable to the company’s owners at RMB 39,600,000, up from RMB 37,000,000[40]. - The company's revenue increased significantly by RMB 182,100,000 or 222.1% to RMB 264,100,000 during the reporting period, compared to RMB 82,000,000 in the corresponding period, primarily due to the acquisitions of CashBox and Beijing Liheng, as well as the expansion of commercial factoring and other financial services[34]. Acquisitions and Strategic Developments - The acquisition of CashBox Group Technology (Hong Kong) Limited contributed RMB 139.9 million to the company's revenue following its acquisition on June 21, 2024[13]. - The company also acquired Beijing Liheng Group in August 2024, which added RMB 10.5 million to its revenue[13]. - CashBox's acquisition of Beijing Liheng Group will allow the company to consolidate its financial performance into the group’s financial statements, enhancing its operational control and economic benefits[14]. - The acquisition of Tianjin Guanchuang is still pending approval from the People's Bank of China, which has not been obtained as of December 31, 2024[64]. - The company believes that the acquisition of Tianjin Guanchuang will play a crucial role in its business development and create more growth opportunities and synergies[66]. Business Strategy and Market Focus - The company is focusing on the integration of financial technology and the real economy, aiming to enhance service efficiency and quality through technological empowerment[10]. - The company plans to expand its digital internet ecosystem by integrating new technologies and business lines, particularly in the context of Web 3.0[10]. - The company aims to maintain a stable financial performance while optimizing its revenue structure to create new growth momentum for brand value[10]. - The company aims to develop a multi-dimensional interconnected business ecosystem under the new Web 3.0 model, connecting users and merchants to enhance its overall internet service capabilities[33]. - The company is committed to responding to national policy directions by promoting inclusive finance and digital transformation[10]. Revenue Sources and Growth Areas - Revenue from commercial factoring increased by RMB 4,600,000 or 6.1% to RMB 80,400,000, driven by an expansion in commercial factoring loan scale in China[17]. - Revenue from other financial services surged by RMB 27,100,000 or 437.1% to RMB 33,300,000, attributed to strengthened business promotion efforts during the reporting period[17]. - The commercial factoring business recorded an increase in income to RMB 80,400,000, up from RMB 75,800,000 in the corresponding period, driven by an increase in loan amounts to high-quality clients from RMB 1.5 billion to RMB 1.8 billion[25]. - The income from other financial services surged to RMB 33,300,000, a significant increase from RMB 6,200,000 in the corresponding period, attributed to enhanced business promotion efforts[27]. Economic and Market Trends - The overall economic growth target for China in 2024 was successfully achieved at 5%, despite geopolitical challenges[6]. - The global supply chain finance industry in China reached approximately RMB 41.3 trillion in 2023, growing by 11.9% year-on-year, with a projected compound annual growth rate of 20.88% over the next five years[20]. - The number of internet users in China is expected to reach 1.108 billion by December 2024, with an internet penetration rate of 78.6%[21]. - The global gaming market is projected to reach RMB 1,216.335 billion in 2024, reflecting a year-on-year growth of 3.31%[21]. - The market for Web3.0-related businesses is expected to reach USD 800 billion in 2024 and rapidly increase to USD 1.5 trillion by 2030, indicating a significant shift in traditional business models[23]. Corporate Governance and Management - The company appointed Mr. Zhou Yafei as Executive Director and Chairman of the Board starting from March 26, 2021, with extensive experience in finance and accounting[86]. - Mr. Song Chenxi rejoined the company as Chief Financial Officer in October 2023, having previously held various financial management roles in other companies[87]. - The company is actively expanding its board with experienced professionals to enhance governance and strategic oversight[95]. - The strategic committee is chaired by Mr. Zhou Yafei, indicating a strong focus on long-term growth strategies[86]. - The company is committed to maintaining high standards of corporate governance through its audit and remuneration committees[89]. Risks and Compliance - The VIE contract with Beijing Liheng may not comply with future Chinese regulatory changes, posing significant risks to the company's operations[149]. - The VIE contract may not provide effective control over Beijing Liheng compared to direct ownership, potentially impacting governance and management decisions[150]. - The company may incur economic risks due to operational difficulties faced by Beijing Liheng, although it is not liable for its losses[158]. - The implementation of the new Foreign Investment Law in China introduces uncertainties regarding the validity of Beijing Liheng's contractual arrangements[160]. - The board will review compliance with the Beijing Liheng contractual arrangements at least annually and may hire external legal advisors if necessary[163]. Financial Position and Capital Structure - The total equity of the group as of December 31, 2024, was RMB 2,465,100,000, an increase from RMB 1,684,200,000 as of December 31, 2023[73]. - Cash and cash equivalents decreased to RMB 130,500,000 as of December 31, 2024, down from RMB 284,400,000 as of December 31, 2023[73]. - The group completed the acquisition of CashBox, issuing 2,500,000,000 new ordinary shares at HKD 0.08 per share, increasing the total number of issued shares to 5,201,123,120 as of December 31, 2024[76]. - The company has a total issued share capital of 5,201,123,120 shares as of December 31, 2024[187]. - The group recorded cash outflow from operating activities of RMB 152,300,000 during the reporting period, compared to RMB 84,200,000 in the corresponding period[74].

Financial Performance - The company's revenue increased significantly from RMB 82,000,000 in the previous year to RMB 264,100,000, representing a growth of 222.1%[3] - Operating profit rose from RMB 46,100,000 to RMB 67,800,000, marking an increase of 47.1%[3] - The net profit attributable to the company was RMB 39,600,000, compared to RMB 37,000,000 in the previous year[3] - Total comprehensive income for the year was RMB 88,302,000, up from RMB 51,880,000[7] - Basic earnings per share increased from 0.98 to 1.37[5] - The company reported a pre-tax profit of RMB 67,770 million for the year, resulting in a net profit of RMB 58,506 million after tax expenses of RMB 9,264 million[19] - The group recorded a profit attributable to owners of the company of RMB 39,600,000, up from RMB 37,000,000 in the corresponding period[72] Dividend Policy - The company does not recommend the distribution of a final dividend for the reporting period[4] - The board does not recommend the payment of a final dividend for the reporting period[73] - The company did not recommend any dividend distribution for the years ended December 31, 2024, and December 31, 2023[32] Assets and Liabilities - Total assets as of December 31, 2024, amounted to RMB 2,525,904,000, an increase from RMB 1,684,195,000 in 2023, reflecting a growth of approximately 50%[9] - Non-current assets totaled RMB 1,125,393,000, compared to RMB 371,533,000 in the previous year, indicating a significant increase of about 202%[9] - Current assets reached RMB 1,482,098,000, up from RMB 1,330,673,000, representing a growth of approximately 11.4%[9] - The company's net equity stood at RMB 2,465,067,000, a substantial rise from RMB 1,684,195,000, marking an increase of around 46%[10] - The total liabilities decreased to RMB 60,837,000 from RMB 1,684,195,000, showing a reduction of approximately 96.4%[10] Market Expansion and Strategy - The company plans to continue expanding its market presence and developing new technologies[3] - The management indicated a positive outlook for the upcoming fiscal year, anticipating continued growth in user data and market share[11] - The company aims to become a market leader in "Technology + Finance" integrated services[73] - The group plans to leverage opportunities in the supply chain finance industry, which is projected to grow at a compound annual growth rate of 10.3% over the next five years, exceeding RMB 60 trillion by 2027[133] Acquisitions and Business Segments - The group has started engaging in game development and publishing, as well as acquiring several companies including Guomei Xin International Investment Limited and CashBox Group Technology (Hong Kong) Limited[16] - The acquisition of CashBox Group Technology contributed RMB 139,900,000 to the group's revenue[67] - The acquisition of Beijing Liheng Group is expected to enhance the company's overall internet service capabilities and diversify its business in a challenging market environment[93] - The company completed the acquisition of 100% of the issued shares of Guomei Xin International Investment Limited, which indirectly holds 47.7% equity in CashBox, and acquired a 3.3% interest in CashBox[142] Financial Services and Revenue Streams - The company's main business includes investment holding and providing commercial factoring and other financial services in China[12] - Revenue from commercial factoring increased by RMB 4,600,000 or 6.1% to RMB 80,400,000[71] - Revenue from other financial services surged by RMB 27,100,000 or 437.1% to RMB 33,300,000[71] - The business segment generated revenue of RMB 80,371 million, while the financial services segment contributed RMB 33,331 million[19] Credit Management and Risk Assessment - The company maintained a strong liquidity position with no overdue loans reported, reflecting robust financial health[36] - The expected credit loss provision for commercial factoring loans was RMB 14,944,000 in 2024, up from RMB 11,473,000 in 2023, indicating a rise of 30.1%[35] - The company is focusing on enhancing the quality of borrowers by evaluating their scale and strength to mitigate risks[121] - The company has established its own credit policies and approval procedures for loan applications[115] Employee and Operational Performance - The group employed a total of 381 employees as of December 31, 2024, compared to 31 employees as of December 31, 2023, with total employee compensation amounting to RMB 20,100,000 during the reporting period[147] - Administrative expenses increased to RMB 56,000,000 from RMB 25,200,000, mainly due to the acquisition of CashBox and Beijing Liheng, resulting in a rise in employee costs[98] Economic Outlook and Industry Trends - The global economic growth is projected at 3.2%, with China's GDP growth expected to reach 5%[74] - The scale of China's supply chain finance industry reached approximately RMB 41.3 trillion in 2023, representing a year-on-year growth of 11.9% and a five-year compound annual growth rate of 20.88%[75] - The market for Web 3.0-related businesses is projected to reach USD 800 billion in 2024, rapidly climbing to USD 1.5 trillion by 2030[80] Compliance and Governance - The company has adhered to all corporate governance codes as stipulated by the Hong Kong Stock Exchange, with no significant deviations reported[148] - The Audit Committee has been established in accordance with Listing Rule 3.21, consisting of four members, including three independent non-executive directors[162]

Financial Performance - The company reported a significant increase in revenue, rising from RMB 39.6 million in the corresponding period to RMB 60.8 million, representing a growth of 53.5%[14]. - The pre-tax profit surged from RMB 3.5 million to RMB 33.6 million, marking an increase of 860%[14]. - The company recorded a profit attributable to owners of RMB 25.3 million, compared to a loss of RMB 2.2 million in the corresponding period[14]. - The group recorded a net profit after tax of RMB 25,400,000 during the interim period, compared to a net loss of RMB 2,200,000 in the corresponding period[24]. - The company achieved a profit before tax of RMB 33,596,000, compared to RMB 3,506,000 in the previous year, indicating a significant improvement[50]. - The net profit for the period was RMB 25,388,000, a turnaround from a loss of RMB 2,229,000 in the same period last year[50]. - Total comprehensive income for the period was RMB 33,613,000, up from RMB 29,984,000 in the previous year, reflecting a growth of 12.2%[51]. - The company’s basic earnings per share increased to RMB 0.89, compared to a loss per share of RMB 0.08 in the previous year[51]. Revenue Sources - Revenue from other financial services increased by 423.3%, from RMB 3 million to RMB 15.7 million, due to enhanced business promotion efforts[14]. - Revenue from commercial factoring increased by 7.1%, from RMB 36.6 million to RMB 39.2 million, driven by the expansion of commercial factoring loan scales in China[14]. - Revenue from financial information services rose to RMB 15,700,000 during the interim period, up from RMB 3,000,000 in the corresponding period, driven by enhanced business promotion efforts[20]. - For the six months ended June 30, 2024, total revenue from external customers was RMB 60,804,000, with contributions of RMB 39,172,000 from commercial factoring, RMB 15,659,000 from other financial services, and RMB 5,973,000 from game development and publishing[70]. Business Strategy and Development - The company aims to become a leading "technology + finance" integrated service group, exploring new business opportunities in the digital economy and Web3.0[15]. - Management believes that continuous development of the "technology + finance" integrated service business will lead to steady growth[15]. - The company aims to leverage emerging technologies like big data and AI to enhance service capabilities and explore diversified financial service solutions[16]. - The group aims to optimize supply chain financial services and explore new paths for "technology + finance" integration to enhance operational efficiency[38]. Economic Context - In the first half of 2024, China's GDP grew by 5.0%, with a second-quarter growth rate of 4.7%, indicating a slowdown compared to the first quarter[16]. - The global economic growth rate is expected to decline to around 2.9% in 2024, influenced by tightening monetary policies and geopolitical tensions[16]. - The digital economy's core industry value-added is projected to account for 10% of GDP by 2025, as per the "14th Five-Year Plan" for digital economy development[17]. - As of December 2023, the number of internet users in China reached 1.092 billion, with an internet penetration rate of 77.5%[17]. Operational Metrics - The average loan balance net amount increased by RMB 112,000,000 or 11.5% to RMB 1,090,000,000 during the reporting period[18]. - The total balance of ordinary loans increased to RMB 1,172,400,000 as of June 30, 2024, from RMB 1,054,800,000 as of December 31, 2023, due to the expansion of commercial factoring business[27]. - The average interest rate for commercial factoring business during the period was approximately 7.2% to 8.0%[31]. - The company continues to focus on high-quality clients, resulting in a decrease in the number of clients but an increase in the loan amount for commercial factoring[18]. Acquisitions and Investments - The acquisition of CashBox Group Technology (Hong Kong) Limited contributed an additional RMB 6 million to revenue[14]. - The company has paid RMB 576,000,000 as a non-current asset under prepayments for the acquisition of Tianjin Guanchuang Meitong E-commerce Co., Ltd., which is still pending approval from the People's Bank of China[34]. - The renewal of the payment business license for Tianjin Guanchuang was successfully completed, valid until January 2028, allowing the company to proceed with the acquisition application[35]. - The company anticipates that the acquisition of Tianjin Guanchuang will provide significant development opportunities and synergies for future growth[35]. - The company completed the acquisition of 100% of the issued shares of Gome Xin International Investment, which indirectly holds 47.7% of CashBox, making it a wholly-owned subsidiary[41]. Financial Position - As of June 30, 2024, the total equity of the group was RMB 2,435,200,000, an increase from RMB 1,684,200,000 as of December 31, 2023[39]. - The group's cash and cash equivalents decreased to RMB 194,100,000 from RMB 284,400,000 as of December 31, 2023, indicating improved fund utilization[39]. - The liquidity ratio as of June 30, 2024, was 26.1, down from 73.9 as of December 31, 2023[39]. - The total non-current assets amounted to RMB 1,047,358,000 as of June 30, 2024, a significant increase from RMB 371,533,000 at the end of 2023[52]. - The total liabilities for trade payables were RMB 28,124,000 as of June 30, 2024, compared to RMB 50,000 as of December 31, 2023[101]. Governance and Compliance - The company has adopted the corporate governance code as per the Listing Rules and has complied with all provisions except for certain deviations[116]. - The audit committee consists of three independent non-executive directors and one non-executive director, ensuring compliance with listing rules[124]. - The board of directors includes two executive directors, two non-executive directors, and three independent non-executive directors[125]. - The company is committed to maintaining compliance with updated accounting standards and ensuring accurate financial reporting[59]. Shareholder Information - Swiree Capital Limited holds 1,653,073,872 shares, representing 31.78% of the company's issued share capital[114]. - Du Juan holds a total of 2,185,286,341 shares through her spouse, representing 42.02% of the company's issued share capital[114]. - Mega Bright Capital Resources Limited, controlled by Huang Guangyu, also holds 2,185,286,341 shares, accounting for 42.02% of the total[114]. - The total number of issued shares as of June 30, 2024, is 5,201,123,120 shares[115].

Financial Performance - Revenue increased significantly from RMB 39,600,000 for the six months ended June 30, 2023, to RMB 60,800,000 for the six months ended June 30, 2024, representing a growth of approximately 53.5%[2] - Operating profit surged by 860% to RMB 33,600,000 for the six months ended June 30, 2024, compared to RMB 3,500,000 for the same period in 2023[2] - The net profit for the six months ended June 30, 2024, was RMB 25,400,000, a turnaround from a loss of RMB 2,200,000 in the same period of 2023[2] - Basic earnings per share for the six months ended June 30, 2024, was RMB 0.89, compared to a loss per share of RMB 0.08 for the same period in 2023[4] - The adjusted profit before tax for the group was RMB 33,596,000, with a net profit of RMB 25,388,000 for the six months ended June 30, 2024[22] - The group's profit before tax for the six months ended June 30, 2024, was RMB 25,275,000, compared to a loss of RMB 2,229,000 for the same period in 2023, indicating a significant turnaround[30] - The company reported a profit attributable to owners of RMB 25,300,000, a significant increase from a loss of RMB 2,200,000 in the corresponding period[49] - The company recorded a net profit after tax of RMB 25,400,000, compared to a net loss of RMB 2,200,000 in the previous period[59] Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 2,488,644,000, an increase from RMB 1,684,195,000 as of December 31, 2023[5] - The total assets of the group as of June 30, 2024, amounted to RMB 2,490,644,000, with total liabilities of RMB 55,401,000[23] - Non-current assets increased to RMB 1,047,358,000 as of June 30, 2024, compared to RMB 371,533,000 as of December 31, 2023[5] - The total balance of ordinary loans increased to RMB 1,172,394,000 as of June 30, 2024, from RMB 1,054,831,000 as of December 31, 2023, due to the expansion of the commercial factoring business[63] - The expected credit loss provision increased to RMB 13,347,000 as of June 30, 2024, from RMB 11,473,000 as of December 31, 2023, attributed to the increase in receivables[64] Revenue Streams - The revenue from commercial factoring business was RMB 39,172,000, while other financial services generated RMB 15,659,000, and game development and publishing contributed RMB 5,973,000[22] - Revenue from advertising services was RMB 255,000, while recharge service revenue reached RMB 5,718,000, indicating diversification in revenue streams[25] - The company recorded an increase in income from other financial services to RMB 15,700,000, up from RMB 3,000,000 in the previous period, driven by enhanced business promotion efforts[54] - The revenue from the commercial factoring business increased by RMB 2,600,000 or 7.1%, reaching RMB 39,200,000, attributed to the expansion of commercial factoring loan scales in China[49] - The company’s revenue increased by RMB 21,200,000 or 53.5% to RMB 60,800,000 during the reporting period, primarily due to the expansion of commercial factoring and other financial services, as well as the acquisition of CashBox[55] Acquisitions and Investments - The company completed a capital reorganization on June 21, 2024, reducing the par value of shares from HKD 0.1 to HKD 0.01 and issuing 2,500,000,000 shares for the acquisition of a subsidiary, totaling RMB 522,303,000[43] - The acquisition of CashBox contributed an additional RMB 6,000,000 to revenue following its completion on June 21, 2024[49] - The goodwill generated from the acquisition of CashBox amounted to RMB 450,850,000, calculated from the transfer price of RMB 522,303,000, non-controlling interests of RMB 195,132,000, and identifiable net assets of RMB 266,585,000[47] - The company acquired 100% of the issued shares of Gome Xin International Investment, which indirectly holds a 47.7% stake in CashBox, making it a wholly-owned subsidiary[79] Employee and Administrative Expenses - Employee benefits expenses increased to RMB 7,498,000 for the six months ended June 30, 2024, up from RMB 5,002,000 in the same period of 2023, reflecting a 49.9% increase[27] - The total employee compensation (excluding directors' remuneration) for the period was approximately RMB 6,500,000, compared to RMB 4,300,000 in the corresponding period[83] - The company's administrative expenses rose to RMB 15,800,000, an increase of RMB 5,900,000 from the previous period, mainly due to legal and professional fees related to the CashBox acquisition[57] Financial Management and Policies - The group maintained a prudent treasury policy, with all bank deposits in HKD, RMB, and USD, and no hedging policies were adopted[82] - The company has no overdue loans as of June 30, 2024, indicating strong credit management practices[33] - The group recorded cash outflow from operating activities of RMB 89,100,000, compared to RMB 122,100,000 in the corresponding period, primarily due to an increase in trade receivables and loans receivable of RMB 116,800,000[76] Regulatory and Compliance - The group has adopted revised Hong Kong Financial Reporting Standards effective from January 1, 2024, including HKFRS 16 related to lease liabilities in sale and leaseback transactions[9] - The company is awaiting the completion of regulatory approvals for the change of control of Tianjin Guanchuang, which remains pending as of the reporting date[37] - The renewal of Tianjin Guanchuang's payment business license is valid until January 2028, which is expected to provide a clearer approval timeline from the People's Bank of China[71] - The company plans to resubmit approval materials to the People's Bank of China after the new regulations come into effect on May 1, 2024[71] Future Outlook and Strategy - The company plans to continue exploring new business opportunities in the digital economy and Web 3.0 to drive growth and diversify its strategic transformation[50] - The company is actively seeking to enhance its financial technology innovation capabilities by leveraging emerging technologies such as big data, blockchain, and artificial intelligence[52] - The company aims to optimize supply chain financial services and enhance risk awareness while exploring the integration of technology and finance[74]