Core Viewpoint - The company reported a significant increase in revenue and profitability for the first half of 2025, driven primarily by the positive performance of its online gaming segment [1] Financial Performance - The company achieved revenue of 176 million yuan, representing a year-on-year increase of 26.54% [1] - Profit attributable to the owners of the company for the period was 27.129 million yuan, a turnaround from a loss of 7.814 million yuan in the same period last year [1] - Earnings per share were reported at 0.011 yuan [1] Business Segment Performance - The increase in revenue was mainly attributed to the positive performance of the company's online gaming business during the first half of 2025 [1]

[Company Announcement and Financial Highlights](index=1&type=section&id=Company%20Announcement%20and%20Financial%20Highlights) This section provides an overview of 7Road Holdings Limited's unaudited interim results for the six months ended June 30, 2025, and key financial performance [Company Information](index=1&type=section&id=Company%20Information) 7Road Holdings Limited (Stock Code: 797) released its unaudited consolidated interim results for the six months ended June 30, 2025 - Company Name: **7Road Holdings Limited**, Stock Code: **797**[2](index=2&type=chunk) - Announcement content: Unaudited consolidated interim results for the six months ended June 30, 2025[3](index=3&type=chunk) [Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) In H1 2025, total revenue from continuing operations increased by 26.5% to RMB 176.4 million, achieving a profit of RMB 26.1 million, turning losses into profits 2025 H1 Key Financial Data Summary | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | Change | | :--- | :--- | :--- | :--- | | Revenue | 176,387 | 139,389 | +26.5% | | Profit/(Loss) for the period | 26,099 | (5,971) | Turnaround | | Profit/(Loss) for the period attributable to owners of the Company | 27,129 | (7,814) | Turnaround | - Total revenue from continuing operations was approximately **RMB 176.4 million**, an increase of approximately **26.5%** year-on-year[5](index=5&type=chunk) - Profit for the period was approximately **RMB 26.1 million**, compared to a loss of approximately **RMB 6.0 million** in the same period last year, achieving a turnaround[5](index=5&type=chunk) [Business Overview](index=2&type=section&id=Business%20Overview) This section details the overall market conditions for the gaming industry and the Group's operational review and outlook for the second half of 2025 [Industry Overview](index=2&type=section&id=Industry%20Overview) In H1 2025, China's gaming market achieved record-high actual sales revenue and user scale, with strong growth in mobile and mini-program games, and increased overseas revenue from self-developed games - From January to June 2025, domestic game market actual sales revenue was approximately **RMB 168.0 billion**, a year-on-year increase of **14.08%**[6](index=6&type=chunk) - China's game user scale reached nearly **679 million**, a year-on-year increase of **0.72%**, both historical highs[6](index=6&type=chunk) - Mobile game market actual sales revenue was approximately **RMB 125.309 billion**, a year-on-year increase of **16.55%**; mini-program mobile game revenue increased by **40.2%** to **RMB 23.276 billion**[6](index=6&type=chunk) - Overseas actual sales revenue of self-developed domestic games was approximately **USD 9.501 billion**, a year-on-year increase of **11.07%**, with the US, Japan, and South Korea remaining the main markets[6](index=6&type=chunk) [Business Review for H1 2025](index=3&type=section&id=Business%20Review%20for%20H1%202025) The Group focused on core online game business in H1, achieving a 30.7% revenue increase, with mobile games accounting for 79%, while expanding mini-program games, overseas markets, and integrating AI - During the reporting period, online game business achieved revenue of approximately **RMB 176 million**, a year-on-year increase of **30.7%**[7](index=7&type=chunk) - Mobile game revenue accounted for **79%**, and web game revenue accounted for **21%**[7](index=7&type=chunk) - Self-developed mobile game "DDTank" accumulated revenue increased by **15.2%** year-on-year in H1; exclusive operation of mini-program game "I Am MT" continued to generate revenue[7](index=7&type=chunk) - Overseas publishing business continued to strengthen, with "Shen Qu H5" launched in Europe, America, Hong Kong, Macau, Taiwan, and Southeast Asia, contributing incremental revenue[7](index=7&type=chunk) - Artificial intelligence has been successfully integrated into multiple business lines, improving R&D efficiency and product quality[9](index=9&type=chunk) [Outlook for H2 2025](index=4&type=section&id=Outlook%20for%20H2%202025) The Group will continue its "IP-driven, premium, globalized" strategy, deepening R&D in casual competitive and MMORPGs, exploring niche overseas markets, and launching new multi-platform and mini-program games - The Group will adhere to the "IP-driven, premium, globalized" development strategy, strengthening long-term operations and global publishing capabilities[10](index=10&type=chunk) - Continued deepening of R&D investment in casual competitive and MMORPG fields to enrich product types[10](index=10&type=chunk) - Overseas publishing will explore niche regional market opportunities such as Turkey and the extended Middle East region[10](index=10&type=chunk) - The first "DDTank" IP multi-platform classic version is under development, expected to complete basic R&D within 2025[10](index=10&type=chunk) [Financial Review](index=5&type=section&id=Financial%20Review) This section provides a detailed analysis of the Group's financial performance, liquidity, and financial resources for the period, including key operational data and balance sheet items [Operating Data](index=5&type=section&id=Operating%20Data) The Group assesses operational performance using key performance indicators (MAU, MPAU, ARPPU), with both web and mobile game ARPPU showing year-on-year growth in H1 2025, indicating improved user monetization - The Group uses Monthly Active Users (MAU), Monthly Paying Active Users (MPAU), and Average Revenue Per Paying User (ARPPU) to assess operating performance[12](index=12&type=chunk) 2025 H1 Operating Key Performance Indicators | Indicator | Web Games | Mobile Games | | :--- | :--- | :--- | | Average Monthly Active Users (MAU) | Approx. 640,000 | Approx. 550,000 | | Average Monthly Paying Active Users (MPAU) | Approx. 24,200 | Approx. 47,400 | | Average Revenue Per Paying User (ARPPU) | RMB 626 (YoY +19.2%) | RMB 620 (YoY +15.9%) | [Income Statement Comparison (2025 vs 2024 H1)](index=6&type=section&id=Income%20Statement%20Comparison%20(2025%20vs%202024%20H1)) In H1 2025, the Group's continuing operations achieved an operating profit of RMB 32.4 million, a significant improvement from the RMB 4.8 million operating loss in the prior year, driven by revenue growth and controlled expenses 2025 H1 Income Statement Key Metrics Comparison | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 176,387 | 139,389 | +26.5% | | Cost of Revenue | (53,748) | (35,856) | +49.9% | | Gross Profit | 122,639 | 103,533 | +18.5% | | R&D Expenses | (33,074) | (70,690) | -53.2% | | Selling and Marketing Expenses | (24,690) | (38,023) | -35.1% | | Administrative Expenses | (29,811) | (21,322) | +39.8% | | Operating Profit/(Loss) | 32,419 | (4,789) | Turnaround | | Profit/(Loss) for the period | 26,099 | (5,971) | Turnaround | [Revenue](index=7&type=section&id=Revenue) Total revenue increased by 26.5% year-on-year to RMB 176.4 million in H1 2025, primarily driven by the positive performance of the online game business, with growth in both self-developed and agency games - Total revenue was approximately **RMB 176.4 million**, an increase of approximately **26.5%** year-on-year[15](index=15&type=chunk) - Game business revenue was approximately **RMB 176.4 million**, an increase of approximately **30.7%** year-on-year, mainly due to the positive performance of online games[15](index=15&type=chunk) 2025 H1 Revenue Details | Type of Goods or Services | 2025 (RMB '000) | % | 2024 (RMB '000) | % | | :--- | :--- | :--- | :--- | :--- | | Online Game Revenue | 176,387 | 100.0% | 134,941 | 96.8% | | - Self-developed Games (published by the Group) | 92,733 | 52.6% | 77,734 | 55.8% | | - Self-developed Games (published by other publishers) | 46,322 | 26.3% | 39,035 | 28.0% | | - Agency Games (published by the Group) | 31,623 | 17.9% | 18,172 | 13.0% | | - Agency Games (published by other publishers) | 5,709 | 3.2% | — | — | | IP Licensing | — | — | 3,553 | 2.6% | | Cloud-related Services | — | — | 895 | 0.6% | | **Total** | **176,387** | **100%** | **139,389** | **100%** | [Cost of Revenue](index=7&type=section&id=Cost%20of%20Revenue) Cost of revenue increased by 49.9% year-on-year to RMB 53.7 million, primarily due to higher game channel service fees and agency costs - Cost of revenue was approximately **RMB 53.7 million**, an increase of approximately **49.9%** year-on-year[16](index=16&type=chunk) - The increase was mainly due to higher game channel service fees and agency costs[16](index=16&type=chunk) [Gross Profit and Gross Margin](index=8&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit increased by 18.5% year-on-year to RMB 122.6 million, but gross margin decreased to 69.5% as cost of revenue grew faster than revenue - Gross profit was approximately **RMB 122.6 million**, an increase of approximately **18.5%** year-on-year[17](index=17&type=chunk) - Gross margin was approximately **69.5%**, a decrease from **74.3%** in the same period last year, mainly because the growth rate of cost of revenue exceeded that of total revenue[17](index=17&type=chunk) [Research and Development Expenses](index=8&type=section&id=Research%20and%20Development%20Expenses) R&D expenses significantly decreased by 53.2% year-on-year to RMB 33.1 million, primarily due to enhanced R&D expense management and reduced staff remuneration - R&D expenses were approximately **RMB 33.1 million**, a decrease of approximately **53.2%** year-on-year[18](index=18&type=chunk) - The decrease was mainly due to strengthened R&D expense management, reduced staff remuneration expenses, and other R&D expenses[18](index=18&type=chunk) [Selling and Marketing Expenses](index=8&type=section&id=Selling%20and%20Marketing%20Expenses) Selling and marketing expenses decreased by 35.1% year-on-year to RMB 24.7 million, primarily due to lower marketing and promotion costs for game operations and publishing - Selling and marketing expenses were approximately **RMB 24.7 million**, a decrease of approximately **35.1%** year-on-year[19](index=19&type=chunk) - The decrease was mainly due to lower marketing and promotion expenses for game operations and publishing compared to the same period last year[19](index=19&type=chunk) [Administrative Expenses](index=9&type=section&id=Administrative%20Expenses) Administrative expenses increased by 39.8% year-on-year to RMB 29.8 million, primarily due to an increase in other professional service fees - Administrative expenses were approximately **RMB 29.8 million**, an increase of approximately **39.8%** year-on-year[20](index=20&type=chunk) - The increase was mainly due to an increase in other professional service fees compared to the same period last year[20](index=20&type=chunk) [Income Tax](index=9&type=section&id=Income%20Tax) Income tax expense increased year-on-year, primarily due to higher profit before tax, with applicable tax rates ranging from 8.25% to 25% - Income tax expense increased year-on-year, mainly due to higher profit before tax[21](index=21&type=chunk) - Applicable income tax rates ranged from **8.25% to 25%** (2024: 12.5% to 25%)[21](index=21&type=chunk) [Profit/(Loss) for the Period](index=9&type=section&id=Profit%2F(Loss)%20for%20the%20Period) Profit for the period attributable to owners of the Company from continuing operations was approximately RMB 27.1 million, successfully reversing the loss from the prior year, mainly due to increased online game revenue - Profit for the period attributable to owners of the Company from continuing operations was approximately **RMB 27.1 million**, compared to a loss of approximately **RMB 9.1 million** in the same period last year[22](index=22&type=chunk) - The turnaround was mainly due to increased revenue from online games' positive performance in H1 2025[22](index=22&type=chunk) [Liquidity and Financial Resources](index=9&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, cash and cash equivalents increased by 64.9% to RMB 100.0 million, primarily driven by net cash inflow from operating activities - Cash and cash equivalents were approximately **RMB 100.0 million**, an increase of approximately **64.9%** compared to December 31, 2024[23](index=23&type=chunk) - The increase was mainly due to net cash inflow from operating activities during the reporting period[23](index=23&type=chunk) [Interest-Bearing Borrowings](index=10&type=section&id=Interest-Bearing%20Borrowings) As of June 30, 2025, total borrowings remained at RMB 15.0 million, indicating a stable financial position - Total borrowings were approximately **RMB 15.0 million**, consistent with December 31, 2024[24](index=24&type=chunk) [Gearing Ratio](index=10&type=section&id=Gearing%20Ratio) As of June 30, 2025, the gearing ratio slightly increased to 7.7%, indicating a low level of financial leverage - The gearing ratio was approximately **7.7%**, a slight increase from **6.9%** as of December 31, 2024[25](index=25&type=chunk) [Capital Expenditure](index=10&type=section&id=Capital%20Expenditure) Capital expenditure significantly decreased by 96.5% to RMB 0.6 million in H1 2025, primarily due to building-related renovations in the prior year 2025 H1 Capital Expenditure Comparison | Item | 2025 (RMB '000) | 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Servers and other equipment | 25 | 98 | -74.5 | | Motor vehicles | 545 | — | 0 | | Buildings and related renovations and leasehold land | — | 16,178 | -100.0 | | **Total** | **570** | **16,276** | **-96.5** | - Total capital expenditure was approximately **RMB 0.6 million**, a decrease of approximately **96.5%** compared to **RMB 16.3 million** in the same period last year[27](index=27&type=chunk) - The decrease was mainly due to building-related renovations purchased in H1 2024[27](index=27&type=chunk) [Foreign Exchange Risk](index=11&type=section&id=Foreign%20Exchange%20Risk) The Group operates in overseas markets through foreign publishers, exposing it to foreign exchange risks from currencies like USD, but currently has no hedging policy - The Group operates in overseas markets through foreign publishers, bearing foreign exchange risks from currencies such as USD[28](index=28&type=chunk) - For the six months ended June 30, 2025, the Group had no policy to hedge against any foreign currency fluctuations[28](index=28&type=chunk) [Pledged Assets](index=11&type=section&id=Pledged%20Assets) As of June 30, 2025, the Group pledged certain property, plant and equipment and right-of-use assets for borrowings of RMB 15.0 million - Property, plant and equipment of **RMB 7,227,000** and right-of-use assets of **RMB 32,234,000** were pledged for borrowings of **RMB 15.0 million**[29](index=29&type=chunk) [Contingent Liabilities and Guarantees](index=11&type=section&id=Contingent%20Liabilities%20and%20Guarantees) As of June 30, 2025, the Group had no other unrecorded significant contingent liabilities, guarantees, or major litigations, apart from disclosed major legal proceedings and part of Note 16 - Except for major legal proceedings and disclosures in Note 16, there were no other unrecorded significant contingent liabilities, guarantees, or major litigations[31](index=31&type=chunk) [Future Plans for Material Investments or Capital Assets](index=11&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of the announcement date, the Group has no other future plans for material investments or capital assets beyond those already disclosed - As of the announcement date, the Group has no other future plans for material investments or capital assets[32](index=32&type=chunk) [Material Investments Held](index=11&type=section&id=Material%20Investments%20Held) The Group holds material investments in Shanghai Chaoxi, Ningbo Lianjun, and Nanjing Linghang; the Shanghai Chaoxi investment was sold in July 2025, generating a gain, while the others are long-term investments [Investment in Shanghai Chaoxi](index=11&type=section&id=Investment%20in%20Shanghai%20Chaoxi) As of June 30, 2025, the Group held approximately 1.97% equity in Shanghai Chaoxi with a fair value of RMB 394.0 million, recognizing an unrealized fair value gain of RMB 14.0 million; this investment was sold in July 2025, yielding a gain - As of June 30, 2025, the fair value of the investment in Shanghai Chaoxi was approximately **RMB 394.0 million**, accounting for approximately **21.4%** of total assets[33](index=33&type=chunk) - Accumulated unrealized fair value gain on investment in Shanghai Chaoxi was approximately **RMB 14.0 million**[33](index=33&type=chunk) - The investment was sold on July 16, 2025, and the Group will record a disposal gain of approximately **RMB 2.0 million**, totaling a gain of approximately **RMB 14.0 million**[35](index=35&type=chunk) [Investment in Ningbo Lianjun](index=12&type=section&id=Investment%20in%20Ningbo%20Lianjun) As of June 30, 2025, the Group held approximately 20.98% equity in Ningbo Lianjun with a fair value of RMB 116.3 million, recognizing an unrealized fair value gain of RMB 11.3 million, considered a medium-to-long-term investment focusing on integrated circuits - The fair value of the investment in Ningbo Lianjun was approximately **RMB 116.3 million**, accounting for approximately **6.3%** of total assets[36](index=36&type=chunk) - Accumulated unrealized fair value gain on investment in Ningbo Lianjun was approximately **RMB 11.3 million**[36](index=36&type=chunk) - The Group actually holds approximately **20.98%** equity in Ningbo Lianjun, a fund focusing on integrated circuits and upstream/downstream enterprises, considered a medium-to-long-term investment[36](index=36&type=chunk) [Direct Investment in Nanjing Linghang](index=12&type=section&id=Direct%20Investment%20in%20Nanjing%20Linghang) As of June 30, 2025, the Group directly held approximately 0.5085% equity in Nanjing Linghang with a fair value of RMB 122.3 million, considered a medium-to-long-term investment expected to yield financial returns from its smart mobility platform business - The fair value of the direct investment in Nanjing Linghang was approximately **RMB 122.3 million**, accounting for approximately **6.6%** of total assets[38](index=38&type=chunk) - The Group directly holds approximately **0.5085%** equity in Nanjing Linghang, which operates a smart mobility platform, and this investment is considered a medium-to-long-term investment[38](index=38&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates, and Joint Ventures](index=13&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries,%20Associates,%20and%20Joint%20Ventures) In H1 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - In H1 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[40](index=40&type=chunk) [Employees and Remuneration Policy](index=13&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 209 full-time employees, with 70% in R&D; total employee remuneration in H1 was RMB 45.8 million, based on performance, experience, and ability, with training provided - As of June 30, 2025, the Group had **209** full-time employees, with R&D personnel accounting for **70%**[41](index=41&type=chunk) - Total employee remuneration for H1 2025 was approximately **RMB 45.8 million**[41](index=41&type=chunk) - Remuneration policy is based on performance, experience, and ability, with targeted training provided[42](index=42&type=chunk) [Major Legal Proceedings](index=14&type=section&id=Major%20Legal%20Proceedings) The Group is involved in a legal dispute with Qianhai Huanjing regarding "DDTank" IP contract, with a claim of RMB 60.2 million; the case was remanded for retrial after a successful appeal, but is not expected to affect normal business operations - Qianhai Huanjing filed a lawsuit against Guangzhou Zhangyingkong and Angame Inc. in April 2021 regarding a "DDTank" IP contract dispute, with a claim amount of approximately **RMB 60.2 million**[43](index=43&type=chunk) - The first instance ruling dismissed the claim, Qianhai Huanjing successfully appealed, and the case has been remanded for retrial, but is not expected to affect the Group's normal business operations[43](index=43&type=chunk) [Material Post-Balance Sheet Events](index=14&type=section&id=Material%20Post-Balance%20Sheet%20Events) The Group completed the disposal of its investment in Shanghai Chaoxi-related partnership interests on July 16, 2025, with no other material post-balance sheet events - The Group completed the disposal of its investment in Shanghai Chaoxi-related partnership interests on July 16, 2025[45](index=45&type=chunk) [Financial Statements](index=15&type=section&id=Financial%20Statements) This section presents the Group's interim condensed consolidated statement of profit or loss and other comprehensive income and statement of financial position for the period [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=15&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The statement shows a profit from continuing operations of RMB 26.1 million, profit attributable to owners of the Company of RMB 27.1 million, total comprehensive income of RMB 24.8 million, and basic earnings per share of RMB 0.011 for the six months ended June 30, 2025 2025 H1 Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Profit/(Loss) for the period from continuing operations | 26,099 | (7,246) | | Profit/(Loss) for the period | 26,099 | (5,971) | | Total comprehensive income/(expense) for the period | 24,756 | (6,224) | | Profit/(Loss) for the period attributable to owners of the Company | 27,129 | (7,814) | | Basic earnings/(loss) per share | 0.011 | (0.003) | [Interim Condensed Consolidated Statement of Financial Position](index=17&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets were RMB 1,845.2 million, total liabilities were RMB 141.4 million, and net assets reached RMB 1,703.9 million, with financial assets at fair value through profit or loss being a significant component of non-current assets 2025 June 30 Consolidated Statement of Financial Position Summary | Indicator | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Non-current assets | 1,575,811 | 1,547,385 | | Current assets | 269,422 | 257,234 | | **Total Assets** | **1,845,233** | **1,804,619** | | Current liabilities | 122,994 | 113,783 | | Non-current liabilities | 18,376 | 11,225 | | **Total Liabilities** | **141,370** | **125,008** | | Net Assets | 1,703,863 | 1,679,611 | | Total Equity attributable to owners of the Company | 1,703,863 | 1,678,077 | - Financial assets at fair value through profit or loss were the main component of non-current assets, totaling **RMB 841.4 million**[48](index=48&type=chunk) [Notes to Financial Information](index=19&type=section&id=Notes%20to%20Financial%20Information) This section provides detailed notes on the Group's financial information, including general information, basis of preparation, accounting policies, segment information, and specific financial item breakdowns [General Information](index=19&type=section&id=General%20Information) 7Road Holdings Limited, incorporated in the Cayman Islands, primarily develops and publishes web and mobile games in China and other countries, with financial statements presented in RMB - The Company is incorporated in the Cayman Islands, primarily engaged in the development and publishing of web and mobile games in China and other countries[50](index=50&type=chunk) - The unaudited condensed consolidated financial statements are presented in RMB[50](index=50&type=chunk) [Basis of Preparation](index=19&type=section&id=Basis%20of%20Preparation) The financial statements are prepared in accordance with IAS 34 "Interim Financial Reporting" and the HKEX Listing Rules, with accounting policies consistent with the 2024 annual financial statements - The financial statements are prepared in accordance with IAS 34 and the HKEX Listing Rules[51](index=51&type=chunk) - Accounting policies are consistent with the annual financial statements for the year ended December 31, 2024[51](index=51&type=chunk) [Adoption of New and Revised IFRS Accounting Standards](index=19&type=section&id=Adoption%20of%20New%20and%20Revised%20IFRS%20Accounting%20Standards) The Group adopted all new and revised IFRS effective January 1, 2025, with no material changes to accounting policies, presentation, or reported amounts for the current and prior periods - The Group has adopted all new and revised IFRS effective January 1, 2025[52](index=52&type=chunk) - The adoption of these standards did not result in material changes to accounting policies, presentation, or reported amounts for the current and prior periods[52](index=52&type=chunk) [Segment Information and Revenue](index=20&type=section&id=Segment%20Information%20and%20Revenue) The Board considers the Group's business to operate and be managed as a single segment, thus no segment information is presented; the vast majority of non-current assets are located in China, and online game revenue is the primary source of income - The Group's business is operated and managed as a single segment, thus no segment information is presented[53](index=53&type=chunk) - The vast majority of non-current assets are located in China[53](index=53&type=chunk) 2025 H1 Online Game Revenue Details | Type of Goods or Services | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Online Game Revenue | 176,387 | 134,941 | | - Self-developed Games (published by the Group) | 92,733 | 77,734 | | - Self-developed Games (published by other publishers) | 46,322 | 39,035 | | - Agency Games (published by the Group) | 31,623 | 18,172 | | - Agency Games (published by other publishers) | 5,709 | — | | IP Licensing | — | 3,553 | | Cloud-related Services | — | 895 | [Other Income](index=20&type=section&id=Other%20Income) Other income in H1 2025 was RMB 1.4 million, a significant decrease from RMB 13.5 million in the prior year, mainly due to reduced government grants and other income 2025 H1 Other Income Details | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Government grants | 760 | 2,528 | | Refund of China VAT | 581 | 444 | | Others | 38 | 10,573 | | **Total** | **1,379** | **13,545** | [Net Other Gains or Losses and Net Finance Costs](index=21&type=section&id=Net%20Other%20Gains%20or%20Losses%20and%20Net%20Finance%20Costs) Net other gains or losses in H1 2025 was a loss of RMB 0.3 million, compared to a gain of RMB 23.0 million in the prior year, mainly impacted by fair value changes of financial assets; net finance costs improved to a loss of RMB 0.7 million from RMB 0.9 million 2025 H1 Net Other Gains or Losses Details | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Fair value changes of financial assets at fair value through profit or loss | (53) | 21,225 | | (Loss)/gain on disposal of property, plant and equipment and right-of-use assets | (235) | 311 | | Gain on disposal of a subsidiary | 120 | — | | Net foreign exchange (loss)/gain | (36) | 394 | | Others | (88) | 1,081 | | **Total** | **(292)** | **23,011** | 2025 H1 Net Finance Costs Details | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Finance income (total) | 805 | 198 | | Finance costs (total) | (1,500) | (1,142) | | **Net Finance Costs** | **(695)** | **(944)** | [Income Tax Expense](index=22&type=section&id=Income%20Tax%20Expense) Income tax expense in H1 2025 significantly increased to RMB 5.5 million from RMB 0.3 million in the prior year, primarily due to higher current and deferred tax during the period 2025 H1 Income Tax Expense Details | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Current income tax | 1,060 | 14 | | Deferred tax | 4,420 | 321 | | **Total** | **5,480** | **335** | - The increase in income tax expense was mainly due to the increase in profit before tax for the Group and its subsidiaries in H1 2025[21](index=21&type=chunk) [Discontinued Operations](index=22&type=section&id=Discontinued%20Operations) The Group completed the disposal of Shanghai Ling Su Network Technology Co., Ltd. on April 11, 2024, with its cloud computing and related services business classified as discontinued operations, which recorded a profit of RMB 1.3 million in H1 2024 - The Group completed the disposal of all equity interests in Shanghai Ling Su Network Technology Co., Ltd. on April 11, 2024, and its cloud computing and related services business is considered a discontinued operation[64](index=64&type=chunk) 2024 H1 Discontinued Operations Financial Summary | Indicator | 2024 (RMB '000) | | :--- | :--- | | Loss from discontinued operations | (8,167) | | Gain on disposal of discontinued operations | 9,442 | | **Profit for the period from discontinued operations** | **1,275** | [Notes to Operating Profit/(Loss)](index=24&type=section&id=Notes%20to%20Operating%20Profit%2F(Loss)) This note details the expenses comprising operating profit/(loss), highlighting significant year-on-year decreases in employee benefit expenses and promotion and advertising expenses in H1 2025 2025 H1 Major Operating Expenses Details | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Channel service fees and agency costs | 31,995 | 13,356 | | Employee benefit expenses | 45,828 | 69,088 | | Other R&D technical service fees | 8,321 | 23,001 | | Other professional service fees | 14,264 | 3,757 | | Promotion and advertising expenses | 24,690 | 38,297 | - Employee benefit expenses decreased by approximately **33.7%** year-on-year, and promotion and advertising expenses decreased by approximately **35.5%** year-on-year[65](index=65&type=chunk) [Dividends](index=24&type=section&id=Dividends) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[66](index=66&type=chunk) [Basic and Diluted Earnings/(Loss) Per Share](index=25&type=section&id=Basic%20and%20Diluted%20Earnings%2F(Loss)%20Per%20Share) Basic and diluted earnings per share for H1 2025 were both RMB 0.011, a turnaround from a loss of RMB 0.003 in the prior year 2025 H1 Basic and Diluted Earnings/(Loss) Per Share | Indicator | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Basic earnings/(loss) per share — continuing and discontinued operations | 0.011 | (0.003) | | Basic earnings/(loss) per share — continuing operations | 0.011 | (0.004) | | Weighted average number of ordinary shares (thousands) | 2,574,268 | 2,574,268 | - Diluted earnings/(loss) per share is equal to basic earnings/(loss) per share as there are no potential dilutive ordinary shares[68](index=68&type=chunk) [Trade and Other Receivables](index=26&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, the carrying amount of trade receivables decreased to RMB 58.7 million, with credit terms ranging from 30 to 120 days 2025 June 30 Trade Receivables Ageing Analysis | Ageing | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 3 months | 25,431 | 38,993 | | 3 to 6 months | 337 | 1,756 | | 6 months to 1 year | 7,299 | 1,805 | | 1 to 2 years | 1,602 | 2,049 | | Over 2 years | 86,347 | 86,918 | | **Total** | **121,016** | **131,521** | | Provision for impairment losses | (62,354) | (62,930) | | **Carrying Amount** | **58,662** | **68,591** | - The carrying amount of trade receivables decreased from **RMB 68.6 million** as of December 31, 2024, to **RMB 58.7 million**[69](index=69&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=26&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, financial assets at fair value through profit or loss totaled RMB 863.7 million, primarily comprising listed and unlisted equity investments in China, unlisted limited partnerships in China, and listed shares in Hong Kong 2025 June 30 Financial Assets at Fair Value Through Profit or Loss Details | Type | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Non-current - China listed shares and unlisted equity investments | 298,848 | 263,693 | | Non-current - China unlisted limited partnerships | 542,553 | 545,757 | | Current - Hong Kong listed shares | 22,326 | 18,603 | | **Total** | **863,727** | **828,053** | [Trade and Other Payables](index=27&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables increased to RMB 79.7 million, mainly consisting of trade payables and remuneration liabilities 2025 June 30 Trade and Other Payables Details | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade payables | 42,799 | 21,420 | | Remuneration liabilities | 18,309 | 22,543 | | Other tax payables | 3,385 | 5,276 | | Accrued expenses | 15,039 | 15,754 | | **Total** | **79,678** | **65,158** | - Trade payables increased from **RMB 21.4 million** as of December 31, 2024, to **RMB 42.8 million**[70](index=70&type=chunk) [Contingent Liabilities and Guarantees](index=28&type=section&id=Contingent%20Liabilities%20and%20Guarantees) The "Shen Qu" trade secret litigation was dismissed in the first instance on April 8, 2024, no longer a contingent liability; the Group still provides a guarantee of up to RMB 120 million for the disposed Shanghai Ling Su, but with counter-guarantees, credit risk is not material - The "Shen Qu" trade secret litigation's first instance judgment became effective on April 8, 2024, dismissing all plaintiff's claims, thus no longer constituting a contingent liability for the Group[71](index=71&type=chunk) - The Group provides a guarantee of up to **RMB 120 million** for the disposed Shanghai Ling Su, but has obtained counter-guarantees, making the credit risk not material[72](index=72&type=chunk)[73](index=73&type=chunk) [Other Information and Corporate Governance Summary](index=29&type=section&id=Other%20Information%20and%20Corporate%20Governance%20Summary) This section covers the Group's policies and practices regarding securities transactions, dividends, compliance with corporate governance codes, and the role of the audit committee [Purchase, Sale or Redemption of Listed Securities](index=29&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Listed%20Securities) For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities, nor did the Company hold any treasury shares - For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any shares[74](index=74&type=chunk) - The Company did not hold any treasury shares as of June 30, 2025[75](index=75&type=chunk) [Interim Dividend](index=29&type=section&id=Interim%20Dividend) The Board does not recommend the declaration of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[76](index=76&type=chunk) [Compliance with Corporate Governance Code](index=29&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) For the six months ended June 30, 2025, the Company complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules - The Company has complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules[77](index=77&type=chunk) [Standard of Conduct for Directors' Securities Transactions](index=29&type=section&id=Standard%20of%20Conduct%20for%20Directors'%20Securities%20Transactions) The Company adopted the Standard Code set out in Appendix C3 of the Listing Rules, and all directors and relevant employees confirmed compliance during the reporting period - The Company has adopted the Standard Code set out in Appendix C3 of the Listing Rules as its own code of conduct for directors and relevant employees dealing in securities[78](index=78&type=chunk) - All directors confirmed compliance with the Standard Code during the reporting period, and no non-compliance by relevant employees was noted[78](index=78&type=chunk) [Audit Committee](index=29&type=section&id=Audit%20Committee) The Audit Committee, composed of three independent non-executive directors, has reviewed the Group's unaudited interim results for the six months ended June 30, 2025 - The Audit Committee is composed of three independent non-executive directors, with Mr. Xue Jun as the chairman of the committee[79](index=79&type=chunk) - The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025[79](index=79&type=chunk) [Publication of Interim Results Announcement and 2025 Interim Report](index=30&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%202025%20Interim%20Report) This announcement has been published on the HKEX and Company websites, and the interim report will be published by the end of September 2025 - This announcement has been published on the HKEX website (www.hkexnews.hk) and the Company's website (www.7road.com)[80](index=80&type=chunk) - The Group's interim report for the six months ended June 30, 2025, will be published by the end of September 2025[80](index=80&type=chunk) [Definitions](index=30&type=section&id=Definitions) This section provides definitions for key terms and abbreviations used throughout the report, including company names, financial metrics, business types, and related entities, ensuring clarity and understanding [Definitions](index=30&type=section&id=Definitions) This chapter provides definitions for key terms and abbreviations used in the report, including company names, financial indicators, business types, and related entities, to ensure clear understanding of the report content - Provides definitions for key terms such as "Directors", "Average Revenue Per Paying User", "Audit Committee", "Average Monthly Paying User", "Board", "Corporate Governance Code", "China", "Company"[82](index=82&type=chunk)[83](index=83&type=chunk) - Includes definitions for business and finance-related terms such as "Group", "Hong Kong", "IP", "Listing Rules", "Monthly Active User", "Mobile Game", "Standard Code", "Monthly Paying User", "Nanjing Linghang", "Ningbo Lianjun", "Online Game"[84](index=84&type=chunk) - Further defines "Partnership Interest", "Paying User", "Qianhai Huanjing", "R&D", "RMB", "Restricted Share Unit", "Senior Management", "Shanghai Ling Su", "Shanghai Chaoxi", "Shares", "Shareholders", "Stock Exchange", "USD", "Web Game", and "%"[85](index=85&type=chunk)[86](index=86&type=chunk)

7Road Holdings Limited 第七大道控股有限公司 (the "Company"） （「本公司」） Terms of reference of the Nomination Committee (the "Committee") of the Board (the "Board") of Directors (the "Directors") of the Company 本公司董事（「董事」）會（「董事會」）提名委員會（「委員會」）職權範圍 （中文本為翻譯稿，僅供參考用） 1. Constitution 1.1 The Committee is established pursuant to a resolution passed by the Board at its meeting held on June 23, 2018. 2. Membership 組成 本委員會乃根據董事會於2018年6月23日 舉行的會議通過的決議案成立。 成員 委員會成員由董事會從董事中挑選，委 員會人數最少三名，而大部份之成員須 為獨立非執行董事，其中至少一名成員 為不同性別。 委員會主席由董事會委任或經委 ...

Core Viewpoint - The recent launch of two similar mini-games, "New Bouncing Hall" by 7th Avenue and "Bouncing Planet" by 4399, has sparked competition in the casual gaming sector, with both games utilizing the classic gameplay of "Bouncing Hall" [1][2]. Market Situation - "New Bouncing Hall" debuted on the WeChat mini-game sales chart on August 3, ranking 82nd, and climbed to 12th by August 18, showing a strong upward trend [3]. - "Bouncing Planet" entered the sales chart on August 9, peaked at 27th on August 12, and stabilized at 31st as of August 18, indicating a more stable but less dynamic performance compared to its competitor [5]. Product Strategy - "New Bouncing Hall" leverages its heritage as the original creator of "Bouncing Hall," employing a classic horizontal battle mode and high-definition graphics to attract nostalgic players [8]. - In contrast, "Bouncing Planet" features a vertical operation mode and a cute art style aimed at attracting a younger audience, indicating a strategic focus on broadening user reach rather than competing directly on nostalgia [10][11]. Advertising and Marketing - "New Bouncing Hall" began stable advertising in August, peaking at around 300 ads on August 16, while "Bouncing Planet" ramped up its advertising significantly before its launch, reaching nearly 3,000 ads on its peak day [12][5]. - Over the past 30 days, "Bouncing Planet" has released approximately 6,600 ads, significantly outpacing "New Bouncing Hall," which had around 1,200 ads [12][24]. Creative Material - The top creative formats for "New Bouncing Hall" include user-generated content, classic IP showcases, and gameplay explanations, with a focus on nostalgia [13][15]. - "Bouncing Planet" emphasizes gameplay explanations and mixed gameplay recordings, aiming to lower the entry barrier for casual gamers [19][21]. Summary of Strategies - 7th Avenue's strategy for "New Bouncing Hall" focuses on engaging core users of the original IP before expanding its marketing efforts, while 4399 targets a broader audience from the outset, which may lead to less stable initial user engagement [25]. - The competition between these two games highlights the importance of product differentiation and marketing strategies in the evolving mini-game market, where leveraging classic IPs is becoming a significant trend [25][26].

Group 1 - The board meeting of Seventh Avenue (00797.HK) is scheduled for August 28, 2025, to review and approve the interim results for the six months ending June 30, 2025 [1] - The meeting will also consider the declaration and distribution of an interim dividend, if any [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告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對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的任何損失承擔任何責任。 承董事會命 第七大道控股有限公司 主席 孟書奇 中國深圳，二零二五年八月十八日 於本公告日期，本公司執行董事為孟書奇先生、劉志振先生及楊成先生；及本公司獨立非執 行董事為薛隽先生、勵怡青女士及呂志豪先生。 第七大道控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：797） 董事會會議通知 第七大道控股有限公司（「本公司」）董事會（「董事會」）謹此宣佈，董事會會議 將於二零二五年八月二十八日（星期四）舉行，藉以審議及批准（其中包括）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的中期業績及其刊發， 以及考慮宣派及派發中期股息（如有）。 7Road Holdings Limited ...

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 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: 第七大道控股有限公司 呈交日期: 2025年8月5日 I. 法定/註冊股本變動 | 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) | 00797 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | USD | | 0.000005 USD | | | 50,000 | | 增加 / 減少 (-) | | | 0 | | | USD | | | 0 | | 本月底結存 | | | 10,000,000,000 | USD | | 0.000005 USD | | | 50,000 | 本月底法 ...

Financial Performance - The company reported a total revenue of HK$1.2 billion for the fiscal year 2024, representing a 15% increase compared to the previous year[10]. - The company reported a significant increase in revenue, achieving a total of RMB 1.5 billion, representing a 25% year-over-year growth[21]. - For the year ended 31 December 2024, the Company generated total revenue of approximately RMB306.4 million, representing a decrease of approximately 36.8% compared to RMB484.9 million in 2023[26]. - The Company recorded a loss attributable to owners of the Company of approximately RMB73.5 million in 2024, representing a decrease of approximately 49.8% compared to 2023[26]. - The gross profit margin for 2024 was 69.3%, with gross profit amounting to RMB212.3 million, a decrease of approximately 47.0% from RMB400.2 million in 2023[26]. User Engagement - Monthly Active Users (MAUs) reached 5 million, with an average of 1.2 million Monthly Paying Users (MPUs), indicating a 20% growth in user engagement[9]. - User data showed a total of 10 million active users, an increase of 15% compared to the previous quarter[21]. - For the year ended 31 December 2024, the average MAUs for web games was approximately 0.9 million, while mobile games had an average MAUs of approximately 0.6 million[95]. - The average MPUs for web games was approximately 28,000, and for mobile games, it was approximately 49,000[95]. Product Development and Innovation - The company plans to launch three new mobile games in 2025, aiming to capture an additional 10% market share in the mobile gaming sector[7]. - The company has allocated HK$50 million for research and development in new technologies, focusing on augmented reality features for upcoming games[3]. - Research and development expenses increased to RMB 200 million, accounting for 13% of total revenue, reflecting the company's commitment to innovation[21]. - The Company focused on competitive leisure games and MMORPGs as its development direction in 2024, actively capturing new market opportunities[29]. - The mini-program game "I'm MT" was launched in May 2024 and ranked among the top sellers of WeChat mini-program games in its first month[35]. Strategic Partnerships and Acquisitions - A strategic partnership was established with a leading technology firm to enhance game development capabilities and reduce time-to-market by 25%[6]. - The company is exploring potential acquisitions to enhance its technology capabilities, with a budget of up to RMB 500 million allocated for this purpose[21]. - An acquisition of a smaller gaming studio was completed for HK$300 million, expected to contribute an additional HK$100 million in annual revenue[4]. - A new strategic partnership was formed with a leading tech firm, aimed at co-developing advanced gaming technologies[21]. Market Expansion - The company is targeting a revenue growth of 20% for the next fiscal year, supported by new product launches and market expansion initiatives[5]. - Market expansion efforts included entering three new provinces in China, targeting an additional 1 million users[21]. - The company is exploring international markets, with "DDTank Adventure" in Europe and "Wartune H5" in the Asia-Pacific region expected to launch in 2025[42]. Corporate Governance - The company is committed to enhancing its corporate governance practices in line with the latest regulations, ensuring transparency and accountability[1]. - The Board consists of six Directors, ensuring a balance of skills and experience appropriate for the Group's business requirements[171]. - The Board is responsible for corporate governance and has implemented sound policies to maintain high standards of integrity, accountability, and transparency[168]. - The Company has complied with the applicable code provisions of the CG Code during the year ended December 31, 2024[169]. Management Team - Mr. Liu Zhizhen will be appointed as the chief executive officer of the Company effective March 8, 2024, and has over 20 years of experience in game R&D[60]. - The Company is expanding its management team with new appointments, including Mr. Liu as CEO and Mr. Yang as CFO effective January 26, 2025[63]. - The Group's management team includes professionals with qualifications such as CPA and CFA, enhancing financial oversight[67][71]. Financial Oversight and Risk Management - The Company is committed to maintaining strong financial oversight with experienced directors in key positions[64]. - The Group's management has implemented strategies to enhance data analytics capabilities and improve player experience to mitigate identified risks[92]. - The company provided counter-guarantees for the borrowings of Shanghai Lingsu, mitigating credit risk associated with the guarantees[158]. Employee Management - The company had 247 full-time employees as of December 31, 2024, with 71% in R&D, 12% in operations, and 17% in administration[163]. - Employee remuneration for the year ended December 31, 2024, amounted to approximately RMB 125.4 million, including salaries, bonuses, and other benefits[164]. - Total employee compensation for the year ended December 31, 2024, was approximately RMB 125.4 million, including salaries, bonuses, share-based compensation, retirement plan contributions, and other employee benefits[167].

Financial Performance - For the fiscal year ending December 31, 2024, the company's total revenue was approximately RMB 306.4 million, representing a decrease of about 36.8% compared to RMB 484.9 million for the fiscal year ending December 31, 2023[4]. - The company recorded a loss attributable to owners of approximately RMB 73.5 million for the fiscal year ending December 31, 2024, a reduction of about 49.8% from a loss of RMB 146.5 million in the previous year[4]. - Total revenue for the year ended December 31, 2024, was approximately RMB 306.4 million, a decrease of about 36.8% compared to RMB 484.9 million for the year ended December 31, 2023[15]. - Game business revenue was approximately RMB 299.6 million, down 36.2% year-over-year, primarily due to a significant increase in revenue from new games launched at the end of 2022, which declined in the current reporting period[15]. - The net loss attributable to owners of the company for continuing operations was approximately RMB 74.7 million, a significant increase of about 4,618.0% compared to the previous year[22]. - The company reported a net loss of RMB 74,156,000 for the year, compared to a net loss of RMB 144,894,000 in 2023, indicating an improvement[43]. - The gross profit for the same period was RMB 212,285,000, down 47.1% from RMB 400,249,000 in 2023[42]. - The company incurred research and development expenses of RMB 0 in 2024, compared to RMB 94,000 in 2023[59]. User Metrics - The average monthly active users for web games was approximately 0.9 million, while for mobile games it was about 0.6 million for the fiscal year ending December 31, 2024[11]. - The average monthly paying users for web games was around 28,000, and for mobile games, it was approximately 49,000 for the fiscal year ending December 31, 2024[11]. - The average revenue per paying user for web games was approximately RMB 573, while for mobile games it was about RMB 530 for the fiscal year ending December 31, 2024[11]. - The company reported a significant increase in paid users, with a total of 1.5 million paid users across its gaming platforms, representing a 25% year-over-year growth[82]. Cost and Expenses - Cost of revenue amounted to approximately RMB 94.1 million, an increase of about 11.1% compared to RMB 84.7 million in the previous year, mainly due to increased costs associated with agency games[16]. - Research and development expenses were approximately RMB 131.9 million, a decrease of about 21.7% compared to the previous year, due to improved management of R&D spending[18]. - Administrative expenses were approximately RMB 46.0 million, down 22.8% year-over-year, attributed to enhanced cost management[19]. - Sales and marketing expenses increased by approximately 27.6% to RMB 63.6 million, primarily due to higher marketing expenditures for game operations[20]. Investments and Assets - The fair value of the investment in Shanghai Super Silicon as of December 31, 2024, was approximately RMB 391.6 million, representing 21.7% of the total assets of the group[29]. - The cumulative unrealized fair value gain from the investment in Shanghai Super Silicon for the year ended December 31, 2024, was approximately RMB 11.6 million[29]. - The fair value of the investment in Ningbo Lianjun as of December 31, 2024, was approximately RMB 116.3 million, accounting for 6.4% of the group's total assets[30]. - The cumulative unrealized fair value gain from the investment in Ningbo Lianjun for the year ended December 31, 2024, was approximately RMB 11.3 million[30]. - The fair value of the investment in Nanjing Lingxing as of December 31, 2024, was approximately RMB 122.3 million, representing 6.8% of the total assets of the group[31]. - The total consideration for the acquisition of all partnership interests in Shanghai Lingsuda was approximately RMB 122.3 million[35]. - The group held investments in listed and unlisted equity securities totaling RMB 809,450,000 as of December 31, 2024, down from RMB 864,443,000 in 2023[67]. Cash Flow and Liabilities - Cash and cash equivalents as of December 31, 2024, were approximately RMB 60.7 million, an increase of about 26.1% from RMB 48.1 million in the previous year[24]. - The debt-to-asset ratio decreased to approximately 6.9% from 22.9% in the previous year, primarily due to the sale of a subsidiary, which reduced total borrowings[26]. - Trade receivables decreased to RMB 131,521,000 in 2024 from RMB 209,377,000 in 2023, a reduction of approximately 37%[65]. - The group reported a decrease in total liabilities from RMB 108.2 million in 2023 to RMB 65.2 million in 2024, indicating a reduction of about 40%[70]. Future Plans and Strategies - The company plans to launch multiple self-developed or agency mini-program games in 2025, focusing on casual competitive and MMORPG genres[7]. - The company aims to enhance data analysis capabilities and deepen the application of AI technology to improve operational efficiency and product quality in 2025[8]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in user acquisition in the region over the next fiscal year[85]. Corporate Governance and Compliance - The group has complied with all applicable corporate governance code provisions during the fiscal year ending December 31, 2024[74]. - The audit committee, consisting of three independent non-executive directors, reviewed the annual performance for the year ended December 31, 2024[76]. - The company did not declare any dividends for the year ended December 31, 2024, consistent with 2023[61]. - The board does not recommend a final dividend for the year ended December 31, 2024, consistent with the previous year[73]. Other Notable Information - The company has fully exited from providing cloud computing resources and related support services since March 28, 2024[11]. - The company is currently involved in ongoing litigation regarding intellectual property disputes, with potential financial implications pending[39]. - There were no major subsequent events reported after December 31, 2024[41].

Financial Performance - For the six months ended June 30, 2024, the company recorded total revenue of approximately RMB 139.4 million, representing a decrease of approximately 62.0% compared to the same period in 2023[9]. - The company reported a loss for the period of approximately RMB 6.0 million, which is a decrease of approximately 104.6% compared to the loss in the same period in 2023[10]. - The loss attributable to owners of the company was approximately RMB 7.8 million, representing a decrease of approximately 106.0% compared to the same period in 2023[10]. - Revenue for continuing operations for the six months ended June 30, 2024, was RMB 139,389,000, compared to RMB 366,962,000 for the same period in 2023[28]. - Gross profit for the six months ended June 30, 2024, was RMB 103,533,000, down from RMB 325,958,000 in the same period in 2023[28]. - The Group's game business revenue for the same period was approximately RMB 134.9 million, also reflecting a decrease of approximately 62.0% year-on-year[30][32]. - The total comprehensive loss for the period was RMB 6,224, compared to a total comprehensive income of RMB 131,188 in the same period last year[101]. - The basic and diluted loss per share from continuing operations was RMB (0.004), compared to earnings of RMB 0.059 in 2023[99]. - The company reported a net provision of impairment losses on financial assets of RMB 14,843 for the period[97]. - Total expenses for continuing operations decreased to RMB 165,891,000 in 2024 from RMB 192,923,000 in 2023, reflecting a reduction of approximately 14%[162]. Market Overview - According to the "2024 Global Games Market Report," the global gaming market is expected to reach US$ 187.7 billion in 2024, with a year-on-year increase of 4.5% in the number of game players[11]. - The global mobile gaming market is estimated to be US$ 92.6 billion in 2024, accounting for 49% of the total revenue of the gaming industry, with a year-on-year increase of 3.0%[11]. - China's gaming market recorded actual sales revenue of approximately RMB 147.3 billion from January to June 2024, representing a year-on-year increase of approximately 2.1%[12]. - The number of China's game players reached approximately 670 million from January to June 2024, representing a year-on-year increase of approximately 0.9%[12]. - The overseas market for China's proprietarily developed games recorded actual sales revenue of approximately US$ 8.6 billion, representing a year-on-year increase of 4.2%[12]. Game Development and Strategy - The Group plans to launch multiple games in the second half of 2024, aiming to improve game quality and strengthen global publishing capabilities[19]. - The exclusive mini program game "I'm MT" launched in May 2024 achieved a turnover exceeding RMB10 million in its first month and has surpassed 3 million users[16]. - The mobile game "Gintama" is expected to undergo release tests in the second half of 2024 after completing two tests and optimizing the game[17]. - The classic IP mobile game "DDTank X" is expected to finish development in Q4 2024, with recruitment tests planned to assess user acceptance of product innovations[20]. - The overseas version of "Wartune H5" is expected to be launched globally in the second half of 2024, enhancing the Group's global development strategy[21]. - The Group is actively utilizing AIGC technology in game development to enhance product content and improve R&D efficiency[18]. Financial Position and Cash Flow - As of June 30, 2024, cash and cash equivalents were approximately RMB 50.2 million, up from RMB 48.1 million as of December 31, 2023[42]. - Total borrowings as of June 30, 2024, amounted to nil, a decrease from approximately RMB 231.0 million as of December 31, 2023, primarily due to the disposal of Shanghai Lingsu[42]. - The gearing ratio as of June 30, 2024, was approximately 6.9%, down from 22.9% as of December 31, 2023, due to a higher decrease in total liabilities relative to total assets[42]. - Net cash generated from operating activities for the six months ended June 30, 2024, was RMB 41,419,000, a decrease from RMB 220,956,000 in 2023[114]. - Cash flows from investing activities showed a net cash inflow of RMB 49,931,000 for the six months ended June 30, 2024, compared to a net cash outflow of RMB 201,644,000 in 2023[116]. - Net cash used in financing activities was RMB 88,699,000 for the six months ended June 30, 2024, compared to RMB 7,084,000 in 2023, reflecting increased financing costs[116]. Legal and Compliance Matters - Qianhai Huanjing filed a lawsuit claiming approximately RMB 60.2 million related to an intellectual property dispute, which is currently pending retrial[60]. - Proficient City Limited's lawsuit against Qianhai Huanjing and Shenzhen 7Road for RMB 25 million was dismissed, with no further appeals filed[60]. - The Group was not involved in any other material legal proceedings during the six months ended June 30, 2024[61]. - The Company maintained compliance with all applicable code provisions of the CG Code for the six months ended June 30, 2024[86]. - The Company has engaged professional service firms for compliance matters and has adhered to relevant laws and regulations during the reporting period[90]. Shareholder Information - As of June 30, 2024, Mr. Meng Shuqi holds 528,854,000 shares, representing 19.20% of the issued share capital[63]. - The total number of shares in issue as of June 30, 2024, is 2,753,200,000[63]. - Baohu Holdings Limited and Shanghai Bao Hu Investment Management each hold 352,714,000 Shares, representing approximately 12.81% of the registered capital[70]. - The RSU Scheme was approved on March 6, 2018, aimed at incentivizing directors, senior management, and employees to contribute to the group's future development and expansion[75]. - The Company did not declare an interim dividend for the six months ended June 30, 2024[86].