Core Viewpoint - Zhongmiao Holdings (01471) reported a significant increase in revenue and profit for the six months ending June 30, 2025, driven by technological capabilities and diverse insurance products [1] Financial Performance - The company achieved a revenue of 114 million yuan, representing a year-on-year increase of 28.4% [1] - Profit attributable to equity shareholders was 25.063 million yuan, up 16.1% year-on-year [1] - Earnings per share stood at 0.18 yuan [1] Insurance Agency Business Growth - The total premium facilitated by the group increased approximately 40.5%, rising from about 666 million yuan for the six months ending June 30, 2024, to approximately 936 million yuan for the same period in 2025 [1] - Commission income generated from the insurance agency business rose about 32.8%, from approximately 82.2 million yuan to about 109 million yuan [1]

Core Viewpoint - Zhongmiao Holdings (01471) reported a significant increase in revenue and profit for the six months ending June 30, 2025, driven by technological capabilities and diverse insurance products [1] Financial Performance - The company achieved revenue of 114 million yuan, representing a year-on-year increase of 28.4% [1] - Profit attributable to equity shareholders was 25.063 million yuan, up 16.1% year-on-year [1] - Earnings per share stood at 0.18 yuan [1] Insurance Agency Business Growth - Total premiums facilitated by the group rose approximately 40.5% from about 666 million yuan for the six months ending June 30, 2024, to approximately 936 million yuan for the same period in 2025 [1] - Commission income generated from the insurance agency business increased by about 32.8%, from approximately 82.2 million yuan to about 109 million yuan [1]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) This section presents key financial indicators for the first half of 2025 and 2024, highlighting growth in revenue, gross profit, and net profit 2025 H1 Key Financial Indicators | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | YoY Growth | | :--- | :--- | :--- | :--- | | Revenue | 113.6 | 88.5 | 28.4% | | Gross Profit | 42.1 | 37.2 | 13.2% | | Profit for the Period | 25.1 | 21.3 | 17.8% | | Profit Attributable to Equity Holders | 25.1 | 21.6 | 16.2% | [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement provides a summary of the Group's financial performance, including revenue, gross profit, operating profit, and net profit for the six months ended June 30, 2025 and 2024 Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 113,580 | 88,456 | | Cost of Sales | (71,467) | (51,248) | | Gross Profit | 42,113 | 37,208 | | Operating Profit | 30,709 | 26,251 | | Profit for the Period | 25,099 | 21,258 | | Basic and Diluted Earnings Per Share (RMB) | 0.18 | 0.20 | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement presents the Group's financial position, detailing non-current assets, current assets, current liabilities, and total equity as of June 30, 2025, and December 31, 2024 Summary of Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 104,078 | 145,953 | | Current Assets | 543,300 | 489,440 | | Current Liabilities | 42,968 | 37,021 | | Net Current Assets | 500,332 | 452,419 | | Total Assets Less Current Liabilities | 604,410 | 598,372 | | Total Equity | 604,410 | 598,372 | [Notes to the Interim Condensed Consolidated Financial Information](index=6&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed explanatory notes to the interim condensed consolidated financial statements, covering accounting policies, revenue, expenses, and other financial items [1 Basis of Preparation](index=6&type=section&id=1%20Basis%20of%20Preparation) This chapter outlines that the interim financial report is prepared in accordance with HKEX Listing Rules and IAS 34, using consistent accounting policies with the 2024 annual financial statements, and has been reviewed by KPMG - The report is prepared in accordance with the Listing Rules of the Stock Exchange of Hong Kong and International Accounting Standard 34, with accounting policies consistent with the 2024 annual financial statements[9](index=9&type=chunk) - This interim financial report is unaudited but has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[10](index=10&type=chunk) [2 Revenue and Segment Reporting](index=7&type=section&id=2%20Revenue%20and%20Segment%20Reporting) The Group generates revenue primarily from three business segments: insurance agency, IT services, and consulting services, with insurance agency being the main revenue driver showing significant growth - The Group's principal activities are providing insurance agency services, IT services, and consulting services in China[11](index=11&type=chunk) [(a) Disaggregation of Revenue](index=7&type=section&id=2(a)%20Disaggregation%20of%20Revenue) This section disaggregates the Group's revenue by business segment and by the timing of revenue recognition from customer contracts for the periods presented Revenue by Business Segment | Business Segment | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Insurance Agency Business | 109,204 | 82,213 | | IT Services | 4,340 | 5,486 | | Consulting Services | 36 | 757 | | **Total** | **113,580** | **88,456** | Revenue from Contracts with Customers by Timing of Revenue Recognition | Timing of Revenue Recognition | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | At a point in time | 107,435 | 80,464 | | Over time | 6,145 | 7,992 | | **Total** | **113,580** | **88,456** | [(b) Segment Reporting](index=7&type=section&id=2(b)%20Segment%20Reporting) This section details the Group's management of its business across insurance agency, IT services, and consulting segments, with gross profit used as the key performance indicator - The Group manages its business through three reportable segments: insurance agency business, IT services, and consulting services, with gross profit used as the performance indicator for each segment[14](index=14&type=chunk)[18](index=18&type=chunk) Gross Profit by Business Segment | Business Segment | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Insurance Agency Services | 39,627 | 33,260 | | IT Services | 2,450 | 3,413 | | Consulting Services | 36 | 535 | | **Total** | **42,113** | **37,208** | - The majority of the Group's operating assets and results are derived from China, thus no geographical segment analysis is provided[20](index=20&type=chunk) [3 Other Income](index=9&type=section&id=3%20Other%20Income) Other income for the six months ended June 30, 2025, totaled RMB 4,260 thousand, a slight decrease from the prior year, mainly due to reduced government grants and negative other income items, partially offset by increased interest income Other Income Details | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Interest Income | 5,098 | 3,959 | | Government Grants | – | 400 | | Others | (838) | 30 | | **Total** | **4,260** | **4,389** | [4 Profit Before Tax](index=9&type=section&id=4%20Profit%20Before%20Tax) Profit before tax for the six months ended June 30, 2025, was RMB 30,697 thousand, influenced by a significant decrease in finance costs and an increase in staff costs and other items like referral fees [(a) Finance Costs](index=9&type=section&id=4(a)%20Finance%20Costs) This section details the components of the Group's finance costs for the six months ended June 30, 2025, and 2024 Finance Costs Details | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Interest expense on lease liabilities | – | 131 | | Others | 12 | 18 | | **Total** | **12** | **149** | [(b) Staff Costs](index=10&type=section&id=4(b)%20Staff%20Costs) This section details the Group's staff costs, including salaries, wages, other benefits, and contributions to defined contribution retirement plans Staff Costs Details | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Salaries, wages and other benefits | 13,581 | 12,998 | | Contributions to defined contribution retirement plans | 1,110 | 1,287 | | **Total** | **14,691** | **14,285** | [(c) Other Items](index=10&type=section&id=4(c)%20Other%20Items) This section provides a breakdown of other operating expenses, including referral fees, commission fees, service fees, and depreciation Other Items Details | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Referral fees | 62,051 | 40,228 | | Commission fees | 2,990 | 4,855 | | Service fees | 2,500 | 2,340 | | IT subcontracting fees | 1,015 | 376 | | Listing expenses | – | 676 | | Depreciation of property, plant and equipment | 54 | 76 | | Depreciation of right-of-use assets | 876 | 637 | [5 Income Tax in the Consolidated Statement of Profit or Loss](index=11&type=section&id=5%20Income%20Tax%20in%20the%20Consolidated%20Statement%20of%20Profit%20or%20Loss) Income tax expense for the six months ended June 30, 2025, was RMB 5,598 thousand, an increase from the prior year, primarily due to higher profit before tax and the company benefiting from high-tech enterprise and small-profit enterprise tax incentives [(a) Tax in the Consolidated Statement of Profit or Loss](index=11&type=section&id=5(a)%20Tax%20in%20the%20Consolidated%20Statement%20of%20Profit%20or%20Loss) This section details the components of income tax expense recognized in the consolidated statement of profit or loss Tax in Consolidated Statement of Profit or Loss Details | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Current tax – PRC Enterprise Income Tax | 5,595 | 4,845 | | Deferred tax – Temporary differences | 3 | (1) | | **Total** | **5,598** | **4,844** | [(b) Reconciliation of Tax Expense to Accounting Profit at Applicable Tax Rate](index=11&type=section&id=5(b)%20Reconciliation%20of%20Tax%20Expense%20to%20Accounting%20Profit%20at%20Applicable%20Tax%20Rate) This section reconciles the Group's tax expense with the accounting profit calculated at the applicable tax rate, considering various tax adjustments and incentives Tax Expense Reconciliation | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Profit before tax | 30,697 | 26,102 | | Income tax at statutory tax rate | 6,190 | 5,376 | | Super deduction for R&D expenses | (785) | (643) | | Tax effect of non-deductible expenses and others | 193 | 111 | | **Total** | **5,598** | **4,844** | - The Company, as a high-tech enterprise, enjoys a preferential income tax rate of **15%**[26](index=26&type=chunk) - Certain PRC subsidiaries are recognized as small-profit enterprises, benefiting from a preferential tax policy where the portion of taxable income not exceeding **RMB 3 million** is subject to a **25% reduction** and taxed at a **20%** enterprise income tax rate[27](index=27&type=chunk) [6 Earnings Per Share](index=12&type=section&id=6%20Earnings%20Per%20Share) Net profit attributable to equity holders for the six months ended June 30, 2025, was RMB 25,063 thousand, resulting in basic and diluted earnings per share of RMB 0.18, a decrease from RMB 0.20 in the prior period, despite increased net profit, due to an increase in the weighted average number of ordinary shares outstanding Earnings Per Share Calculation | Indicator | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Net profit attributable to equity holders (RMB thousand) | 25,063 | 21,588 | | Weighted average number of ordinary shares outstanding (thousand shares) | 141,196 | 105,896 | | Basic earnings per share attributable to equity holders (RMB) | 0.18 | 0.20 | - The weighted average number of ordinary shares outstanding increased due to the Company's listing on the Main Board of the Stock Exchange on August 6, 2024, with the issuance of **35,300,000 ordinary shares**[28](index=28&type=chunk) [7 Trade and Bills Receivables](index=13&type=section&id=7%20Trade%20and%20Bills%20Receivables) Net trade and bills receivables as of June 30, 2025, increased significantly to RMB 56,388 thousand from RMB 41,965 thousand at the end of 2024, with the majority of receivables aged within three months Net Trade and Bills Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade and bills receivables | 56,455 | 42,048 | | Less: Impairment allowance | (67) | (83) | | **Net Amount** | **56,388** | **41,965** | Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 months (inclusive) | 53,711 | 41,277 | | 3 to 6 months (inclusive) | 1,136 | 596 | | Over 6 months | 1,541 | 92 | | **Net Amount** | **56,388** | **41,965** | [8 Cash and Cash Equivalents, Restricted Cash and Time Deposits](index=13&type=section&id=8%20Cash%20and%20Cash%20Equivalents%2C%20Restricted%20Cash%20and%20Time%20Deposits) As of June 30, 2025, cash and cash equivalents significantly increased to RMB 286,923 thousand, while total time deposits (current and non-current) decreased, and restricted cash notably increased, primarily due to funds collected on behalf of others [(a) Cash and Cash Equivalents](index=13&type=section&id=8(a)%20Cash%20and%20Cash%20Equivalents) This section provides a breakdown of the Group's cash and cash equivalents, including bank deposits and amounts placed with other financial institutions Cash and Cash Equivalents Details | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank deposits | 286,803 | 169,691 | | Amounts placed with other financial institutions | 120 | 30 | | **Total** | **286,923** | **169,721** | [(b) Time Deposits](index=14&type=section&id=8(b)%20Time%20Deposits) This section details the Group's time deposits, categorized into current and non-current assets Time Deposits Details | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current assets – Time deposits | 177,457 | 262,638 | | Non-current assets – Time deposits | 94,709 | 136,282 | | **Total** | **272,166** | **398,920** | [(c) Restricted Cash](index=14&type=section&id=8(c)%20Restricted%20Cash) This section details the components of restricted cash, including margins and funds collected on behalf of others Restricted Cash Details | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current assets – Margin deposits | 7,826 | 7,736 | | Current assets – Funds collected on behalf of others | 16,601 | 7,372 | | **Total** | **24,427** | **15,108** | - Funds collected on behalf of others primarily include premiums collected on behalf of insurance companies but not yet remitted[37](index=37&type=chunk) - Qingdao Haier Insurance Agency Co., Ltd. is required to maintain **15%** of its registered capital as working capital reserves[37](index=37&type=chunk) [9 Trade and Other Payables](index=15&type=section&id=9%20Trade%20and%20Other%20Payables) Total trade and other payables as of June 30, 2025, increased to RMB 33,375 thousand from RMB 26,896 thousand at the end of 2024, primarily driven by a substantial increase in premiums payable Trade and Other Payables Details | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Amounts due to suppliers | 15,899 | 16,329 | | Premiums payable | 12,429 | 2,474 | | Dividends payable | 77 | – | | Accrued listing expenses | – | 1,029 | | Others | 4,970 | 7,064 | | **Total** | **33,375** | **26,896** | - Premiums payable represent premiums collected on behalf of insurance companies but not yet remitted as of the balance sheet date[38](index=38&type=chunk) [10 Capital and Reserves](index=16&type=section&id=10%20Capital%20and%20Reserves) As of June 30, 2025, total equity attributable to the Company's equity holders was RMB 606,197 thousand, with this section detailing share capital issuance, PRC statutory reserve requirements, and dividends paid [(a) Contributed Capital/Share Capital and Capital Reserve](index=16&type=section&id=10(a)%20Contributed%20Capital%2FShare%20Capital%20and%20Capital%20Reserve) This section outlines the issuance of ordinary shares and the allocation of proceeds to share capital and capital reserve - On August 6, 2024, the Company issued **35,300,000 ordinary shares** with a par value of RMB 1 each, with proceeds of **RMB 35,300,000** credited to share capital[39](index=39&type=chunk) - After deducting share issue costs, approximately **RMB 153,028,003** was credited to the capital reserve account[39](index=39&type=chunk) [(b) PRC Statutory Reserves](index=16&type=section&id=10(b)%20PRC%20Statutory%20Reserves) This section explains the requirements for the Group's PRC subsidiaries to appropriate 10% of their after-tax profit to statutory reserves until the reserve reaches 50% of registered capital - The Group is required to appropriate **10%** of its after-tax profit to statutory reserves until the reserve reaches **50%** of its registered capital[40](index=40&type=chunk) - Statutory reserves can be used to offset prior year losses and may be converted into capital in proportion to equity, provided that the remaining reserve balance is not less than **25%** of the entity's registered capital after conversion[40](index=40&type=chunk) [(c) Dividends](index=16&type=section&id=10(c)%20Dividends) This section details the final dividend for 2024 of RMB 0.135 per share, totaling RMB 19,061,406, which was paid before July 4, 2025 - The 2024 final dividend of **RMB 0.135 per share**, totaling **RMB 19,061,406**, was paid before July 4, 2025[41](index=41&type=chunk) [11 Non-Adjusting Post Balance Sheet Events](index=16&type=section&id=11%20Non-Adjusting%20Post%20Balance%20Sheet%20Events) On August 22, 2025, the Company entered into an agreement to conditionally acquire a 55% equity interest in Beijing Kechuang Rongxin Technology Co., Ltd. for RMB 165 million in cash - On August 22, 2025, the Company entered into an agreement to conditionally acquire a **55% equity interest** in Beijing Kechuang Rongxin Technology Co., Ltd. for **RMB 165 million** in cash[42](index=42&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's business performance, financial results, and future outlook, emphasizing its commitment to an intelligent insurance service platform and AI technology [Business Review](index=17&type=section&id=Business%20Review) The Group is dedicated to building a one-stop intelligent insurance service platform, promoting full-process digital upgrades, and increasing investment in AI and big data technologies, achieving significant growth in revenue and net profit for the six months ended June 30, 2025 - The Group is committed to building and improving a one-stop intelligent insurance service platform, promoting full-process digital upgrades from underwriting to policy management and claims services[43](index=43&type=chunk) - Continuous investment in cutting-edge technologies such as artificial intelligence, big data, and blockchain is a key focus[43](index=43&type=chunk) 2025 H1 Business Review Key Indicators | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | YoY Growth | | :--- | :--- | :--- | :--- | | Operating Revenue | 113.6 | 88.5 | 28.4% | | Net Profit Attributable to Equity Holders | 25.1 | 21.6 | 16.2% | [Insurance Agency Business](index=17&type=section&id=Insurance%20Agency%20Business) This section reviews the performance of the insurance agency business, highlighting significant increases in gross premiums and commission income, driven by platform optimization and new partnerships, despite a decline in life and health insurance - Gross premiums facilitated by the insurance agency business increased by **40.5%** from **RMB 666.2 million** to **RMB 936.0 million** in the first half of the year[44](index=44&type=chunk) - Insurance agency business commission income rose by **32.8%** from **RMB 82.2 million** to **RMB 109.2 million**, accounting for **96.1%** of total revenue[44](index=44&type=chunk) - Commission income from property insurance products grew by **47.4%** to **RMB 52.9 million**, driven by optimization of the enterprise insurance interactive service platform and product iterations[44](index=44&type=chunk) - Commission income from accident and auto insurance products increased by **38.6%** to **RMB 47.4 million**, primarily due to the introduction of new strategic channel partners[44](index=44&type=chunk) - Commission income from life and health insurance products decreased by **26.4%** to **RMB 8.9 million**, affected by the overall economic situation in China, weakened consumer demand, and the "reporting and execution in one" policy[44](index=44&type=chunk) [IT Services](index=18&type=section&id=IT%20Services) This section reviews the performance of IT services, noting a decrease in revenue primarily due to the timing of IT project acceptance milestones - IT services revenue decreased by **21.8%** from **RMB 5.5 million** to **RMB 4.3 million**[45](index=45&type=chunk) - The decline in revenue was mainly due to the timing of IT project acceptance milestones[45](index=45&type=chunk) - IT services revenue accounted for **3.8%** of total revenue[45](index=45&type=chunk) [Consulting Services](index=18&type=section&id=Consulting%20Services) This section describes the consulting services offered by the Group, including human resources consulting, management and recruitment strategy advice, and marketing and promotion services - The Group provides human resources consulting services and marketing and promotion services, including management and recruitment strategy advice, direct recruitment services, and design of promotional materials and advertisements[46](index=46&type=chunk) [Outlook](index=18&type=section&id=Outlook) The Group's long-term strategic goals include achieving sustainable development by expanding its ecosystem, proactively embracing AI technology, particularly in risk reduction and smart claims, and making prudent investments and acquisitions in the insurance intermediary and FinTech industries [Continuous Expansion of Ecosystem](index=18&type=section&id=Continuous%20Expansion%20of%20Ecosystem) This section outlines the strategy to expand the ecosystem through collaborative models, offering extended services beyond insurance, and actively developing a comprehensive FinTech business ecosystem - The Group aims to expand its ecosystem through a co-creation model, establishing connections with more companies to offer a wider range of insurance product solutions[47](index=47&type=chunk) - Services will extend beyond insurance, providing ecosystem services that originate from but are not limited to insurance, thereby enhancing user stickiness[47](index=47&type=chunk) - The Group plans to seize opportunities in financial digital development, actively expand its FinTech business landscape, and build a comprehensive FinTech business ecosystem[47](index=47&type=chunk) [Proactive Embrace of AI](index=19&type=section&id=Proactive%20Embrace%20of%20AI) This section details the Group's "AI+" strategy, focusing on enhancing risk reduction through comprehensive information collection and smart management, and improving smart claims processing with large models and rule engines for higher accuracy and efficiency - The "AI+" strategy will be deepened, with a focus on **AI+ risk reduction** through large models and big data technology to build a comprehensive information collection network, enabling intelligent hierarchical management, real-time warnings, and interventions to enhance warehouse safety management and emergency response efficiency[48](index=48&type=chunk) - **Smart claims processing** will be advanced using large models and rule engines to achieve intelligent collection of all medical bill details nationwide, dynamic correction of standard databases, improving collection accuracy, and adapting precise claims assessment algorithms to enhance claims efficiency and reasonably reduce losses[48](index=48&type=chunk) [Prudent Investments and Acquisitions in the Insurance Intermediary and FinTech Industries](index=19&type=section&id=Prudent%20Investments%20and%20Acquisitions%20in%20the%20Insurance%20Intermediary%20and%20FinTech%20Industries) This section outlines the Group's intention to actively seek strategic investment and acquisition opportunities in the insurance intermediary and FinTech sectors to accelerate business development and enhance overall competitiveness - The Group intends to actively seek strategic investment and acquisition opportunities in the insurance intermediary and FinTech industries to accelerate business development and enhance overall competitiveness[48](index=48&type=chunk) - Key considerations for investment and acquisition targets include their ability to strategically complement the Group's business in terms of technological capabilities, resource channels, or talent teams[48](index=48&type=chunk) [Financial Review](index=20&type=section&id=Financial%20Review) For the six months ended June 30, 2025, the Group experienced increases in revenue, gross profit, R&D costs, general and administrative expenses, and income tax, while selling and marketing costs and finance costs decreased, leading to a slight decline in overall net profit margin [Revenue](index=20&type=section&id=Revenue) This section reviews the Group's total revenue, which increased by 28.4% to RMB 113.6 million, primarily driven by higher insurance agency business income, despite a decrease in IT services revenue - Total revenue increased by **28.4%** from **RMB 88.5 million** to **RMB 113.6 million**, primarily due to increased revenue from the insurance agency business[49](index=49&type=chunk) - The increase in insurance agency business commission income was mainly attributable to the optimization and upgrade of the enterprise insurance interactive service platform and the addition of new strategic channel partners[49](index=49&type=chunk) - IT services revenue decreased, primarily due to the timing of IT project acceptance milestones[49](index=49&type=chunk) [Gross Profit and Gross Profit Margin](index=20&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) This section reviews the Group's gross profit, which increased to RMB 42.1 million, while the overall gross profit margin decreased to 37.1%, mainly due to a higher proportion of lower-margin property insurance products within the insurance agency business - Overall gross profit increased from **RMB 37.2 million** to **RMB 42.1 million**[50](index=50&type=chunk) - The overall gross profit margin decreased from **42.0%** to **37.1%**[50](index=50&type=chunk) - The decrease in gross profit margin was mainly attributable to a decline in the gross profit margin of the insurance agency business, due to an increased proportion of commission income from property insurance products, which have relatively lower distribution gross margins[50](index=50&type=chunk) [Other Income](index=21&type=section&id=Other%20Income) This section reviews the Group's other income, which slightly decreased to RMB 4.3 million, primarily due to increased exchange losses, partially offset by higher interest income from time deposits - Other income decreased from **RMB 4.4 million** to **RMB 4.3 million**[51](index=51&type=chunk) - The decrease was mainly due to increased exchange losses, partially offset by increased interest income from time deposits[51](index=51&type=chunk) [Research and Development Costs](index=21&type=section&id=Research%20and%20Development%20Costs) This section reviews the Group's R&D costs, which slightly increased to RMB 4.7 million, primarily due to higher staff costs resulting from an increased number of R&D employees - Research and development costs slightly increased from **RMB 4.4 million** to **RMB 4.7 million**[52](index=52&type=chunk) - The increase was due to higher staff costs resulting from an increased number of R&D employees[52](index=52&type=chunk) [General and Administrative Expenses](index=21&type=section&id=General%20and%20Administrative%20Expenses) This section reviews the Group's general and administrative expenses, which increased to RMB 8.1 million, mainly due to higher personnel costs aimed at improving corporate governance and motivating management - General and administrative expenses increased from **RMB 6.9 million** to **RMB 8.1 million**[53](index=53&type=chunk) - The increase was mainly due to higher personnel costs aimed at improving corporate governance and enhancing the motivation of management personnel[53](index=53&type=chunk) [Selling and Marketing Costs](index=21&type=section&id=Selling%20and%20Marketing%20Costs) This section reviews the Group's selling and marketing costs, which decreased to RMB 2.8 million, primarily attributed to optimized business processes and enhanced organizational efficiency - Selling and marketing costs decreased from **RMB 4.1 million** to **RMB 2.8 million**[54](index=54&type=chunk) - The decrease was mainly attributable to optimized business processes and enhanced organizational efficiency[54](index=54&type=chunk) [Finance Costs](index=21&type=section&id=Finance%20Costs) This section reviews the Group's finance costs, which significantly decreased to RMB 12 thousand, mainly due to reduced interest expenses on lease liabilities - Finance costs decreased from **RMB 149 thousand** to **RMB 12 thousand**[55](index=55&type=chunk) - The decrease was mainly due to reduced interest expenses on lease liabilities[55](index=55&type=chunk) [Income Tax](index=21&type=section&id=Income%20Tax) This section reviews the Group's income tax, which increased to RMB 5.6 million, primarily due to higher profit before tax resulting from business growth - Income tax increased from **RMB 4.8 million** to **RMB 5.6 million**[56](index=56&type=chunk) - The increase was mainly due to higher profit before tax resulting from business growth[56](index=56&type=chunk) [Profit](index=22&type=section&id=Profit) This section reviews the Group's profit for the period, which increased to RMB 25.1 million, although the net profit margin decreased to 22.1% - Profit for the period increased from **RMB 21.3 million** to **RMB 25.1 million**[57](index=57&type=chunk) - The net profit margin decreased from **24.1%** to **22.1%**[57](index=57&type=chunk) [Financial Position](index=22&type=section&id=Financial%20Position) The Group's net assets slightly increased from RMB 598.4 million at the end of 2024 to RMB 604.4 million as of June 30, 2025, primarily due to increased operating profit during the period, partially offset by cash dividends paid Financial Position Summary | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 104,078 | 145,953 | | Current Assets | 543,300 | 489,440 | | Current Liabilities | 42,968 | 37,021 | | Net Assets | 604,410 | 598,372 | - Net assets slightly increased due to higher operating profit during the period, partially offset by cash dividends paid[58](index=58&type=chunk) [Cash and Cash Equivalents and Time Deposits in Other Financial Assets](index=22&type=section&id=Cash%20and%20Cash%20Equivalents%20and%20Time%20Deposits%20in%20Other%20Financial%20Assets) The total of cash and cash equivalents and time deposits in other financial assets decreased from RMB 568.6 million at the end of 2024 to RMB 559.1 million as of June 30, 2025, mainly due to cash dividends paid and delayed collection of trade receivables, partially offset by increased operating profit Total Cash and Other Financial Assets in Time Deposits | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Cash and cash equivalents | 286,923 | 169,721 | | Time deposits in other financial assets – Current portion | 177,457 | 262,638 | | Time deposits in other financial assets – Non-current portion | 94,709 | 136,282 | | **Total** | **559,089** | **568,641** | - The total amount decreased mainly due to cash dividends paid and delayed collection of trade receivables, partially offset by increased operating profit during the period[60](index=60&type=chunk) [Liquidity and Financial Resources](index=23&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's net current assets were RMB 500.3 million, with total cash and cash equivalents and time deposits in other financial assets amounting to RMB 559.1 million, indicating sufficient liquidity for operations and strategic investments in the coming year - As of June 30, 2025, net current assets were **RMB 500.3 million** (December 31, 2024: RMB 452.4 million)[61](index=61&type=chunk) - Total cash and cash equivalents and time deposits in other financial assets amounted to **RMB 559.1 million**[61](index=61&type=chunk) - The Group will have sufficient liquidity to meet its working capital requirements for the next year and maintain financial flexibility for future strategic investment opportunities[61](index=61&type=chunk) [Gearing Ratio](index=23&type=section&id=Gearing%20Ratio) As of June 30, 2025, the Group's gearing ratio was 0.0035%, reflecting a very low level of leverage - As of June 30, 2025, the gearing ratio was **0.0035%**[62](index=62&type=chunk) [Bank Borrowings](index=23&type=section&id=Bank%20Borrowings) As of June 30, 2025, the Group had no bank borrowings - As of June 30, 2025, the Group had **zero bank borrowings**[63](index=63&type=chunk) [Contingent Liabilities](index=23&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had **no significant contingent liabilities**[64](index=64&type=chunk) [Capital Commitments](index=23&type=section&id=Capital%20Commitments) For the six months ended June 30, 2025, the Group incurred no capital commitments - For the six months ended June 30, 2025, the Group incurred **no capital commitments** (RMB 11 thousand for the same period last year)[65](index=65&type=chunk) [Dividends](index=24&type=section&id=Dividends) The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025[66](index=66&type=chunk) [Use of Net Proceeds from Global Offering](index=24&type=section&id=Use%20of%20Net%20Proceeds%20from%20Global%20Offering) The net proceeds from the global offering were approximately HKD 198.9 million, with HKD 1.2 million utilized by June 30, 2025, for enhancing IT service products and R&D capabilities, while the majority remains unutilized and is planned for developing insurance agency business, improving IT services, prudent investments, and general working capital - The net proceeds from the global offering were approximately **HKD 198.9 million**[67](index=67&type=chunk) Use of Net Proceeds from Global Offering and Utilization Status | Main Use | Approximate Percentage | Total Net Proceeds Allocated (HKD million) | Amount Utilized (June 30, 2025) (HKD million) | Unutilized Amount (June 30, 2025) (HKD million) | Expected Timeline for Unutilized Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | | Development of insurance agency business | 53.8% | 107.0 | – | 107.0 | Before end of 2027 | | Enhancement of IT service products and R&D capabilities | 26.2% | 52.1 | 1.2 | 50.9 | Before end of 2029 | | Seeking prudent investments and acquisitions | 10.0% | 19.9 | – | 19.9 | Before end of 2026 | | General working capital and general corporate purposes | 10.0% | 19.9 | – | 19.9 | Before end of 2027 | | **Total** | **100.0%** | **198.9** | **1.2** | **197.7** | | [Corporate Governance Code](index=25&type=section&id=Corporate%20Governance%20Code) The Company has adopted and complied with all principles and code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules during the reporting period - The Company has adopted the Corporate Governance Code as set out in Appendix C1 of the Listing Rules and has complied with all principles and code provisions during the reporting period[69](index=69&type=chunk) - The roles of Chairman and Chief Executive Officer are combined and held by Mr. Lu Yao, an arrangement the Board believes ensures consistent internal leadership and enhances overall strategic planning efficiency[70](index=70&type=chunk) [Standard Code for Securities Transactions](index=26&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The Company has adopted a code of conduct for securities transactions by directors and supervisors that is no less exacting than the Standard Code set out in Appendix C3 of the Listing Rules, with all directors and supervisors confirming compliance during the period - The Company has adopted a code of conduct for securities transactions by directors and supervisors that is no less exacting than the Standard Code set out in Appendix C3 of the Listing Rules[71](index=71&type=chunk) - All directors and supervisors confirmed compliance with the required standards of the Standard Code for the six months ended June 30, 2025[71](index=71&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=26&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[72](index=72&type=chunk) [Review of Interim Financial Information](index=26&type=section&id=Review%20of%20Interim%20Financial%20Information) The Company's unaudited condensed consolidated interim results have been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410 and by the Audit Committee of the Board - The Company's unaudited condensed consolidated interim results have been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[73](index=73&type=chunk) - The interim results have also been reviewed by the Audit Committee of the Board[73](index=73&type=chunk) [Post Balance Sheet Events](index=26&type=section&id=Post%20Balance%20Sheet%20Events) On August 22, 2025, the Company entered into an agreement to conditionally acquire a 55% equity interest in Beijing Kechuang Rongxin Technology Co., Ltd. for RMB 165 million in cash - On August 22, 2025, the Company entered into an agreement to conditionally acquire a **55% equity interest** in Beijing Kechuang Rongxin Technology Co., Ltd. for **RMB 165 million** in cash[74](index=74&type=chunk) [Publication of Results Announcement and Interim Report](index=27&type=section&id=Publication%20of%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement has been published on the HKEX website and the Company's website, with the full 2025 interim report to be dispatched to shareholders and posted online in due course - This interim results announcement has been published on the HKEX website (www.hkexnews.hk) and the Company's website (www.haierbx.net)[76](index=76&type=chunk) - The 2025 interim report, containing all information required by the Listing Rules, will be dispatched to shareholders and posted on the respective websites of the Stock Exchange and the Company in due course[76](index=76&type=chunk) [Acknowledgement](index=27&type=section&id=Acknowledgement) The Board extends its sincere gratitude to the Group's management and all employees for their efforts and contributions during the period, as well as to shareholders, business partners, and other professionals for their support - The Board extends its sincere gratitude to the Group's management and all employees for their efforts and contributions during the period, as well as to shareholders, business partners, and other professionals for their support[77](index=77&type=chunk) [By Order of the Board](index=27&type=section&id=By%20Order%20of%20the%20Board) This section lists the executive directors, Mr. Lu Yao, Mr. Zhang Zhiquan, Ms. Li Tian, and Mr. Wang Heping, and independent non-executive directors, Ms. Fang Qiaoling, Mr. Zhong Weiwen, and Ms. Wu Xianqiao - The executive directors are Mr. Lu Yao, Mr. Zhang Zhiquan, Ms. Li Tian, and Mr. Wang Heping[78](index=78&type=chunk) - The independent non-executive directors are Ms. Fang Qiaoling, Mr. Zhong Weiwen, and Ms. Wu Xianqiao[78](index=78&type=chunk)

Core Viewpoint - Zhongmiao Holdings (01471) plans to acquire a financial digitalization company, Kexinrongxin Technology, for 165 million yuan, valuing the company at approximately 300 million yuan for a 55% stake, indicating a strategic move into the financial asset digitalization sector [1][3]. Group 1: Company Overview - Kexinrongxin Technology, previously listed on the New Third Board, is based in Beijing and specializes in financial asset digitalization, transforming traditional financial operations into digital management systems [2]. - The company primarily serves banks and non-bank financial institutions, offering solutions like a second-generation currency issuance logistics management system that automates and tracks currency distribution [2]. Group 2: Benefits of Acquisition - The acquisition will enrich Zhongmiao Holdings' product line by adding financial asset digitalization services to its core insurance agency offerings, enhancing its overall service portfolio [4]. - Kexinrongxin's technology can facilitate the digital upgrade of Zhongmiao's insurance services, improving processes such as insurance claims [6]. Group 3: Industry Trends - The financial asset digitalization sector is significantly influenced by AI, with a growing percentage of finance professionals recognizing the potential for AI applications in their field, increasing from 64.73% in 2024 to 69.03% in 2025 [8]. - Research indicates that AI models like GPT-4 excel in financial report analysis, potentially surpassing human analysts [10]. - There is a notable market opportunity for smaller financial institutions that are slower in digital transformation due to resource constraints, creating a demand for digitalization services [11]. Group 4: Application Cases - Jiangsu Bank has implemented an AI-driven "intelligent document assistant" to enhance efficiency in credit approval processes, achieving a 42% increase in efficiency and saving 15,000 hours of work annually [13]. - Hengsheng Electronics upgraded its non-performing asset management system using AI to streamline decision-making processes [14]. - The AI model "Hongxiaozhi" has significantly improved the efficiency of state-owned asset management, reducing the asset verification cycle from monthly to daily [15]. - Changjietong has introduced an AI solution for small and micro enterprises that automates tax-related tasks, drastically reducing the need for human resources [16].

Core Viewpoint - The strategic investment by Zhongmiao Holdings in Kexinrongxin marks a significant transition from an insurance technology company to a comprehensive financial technology service provider, indicating a new phase in the company's development [1] Group 1: Strategic Collaboration - Zhongmiao Holdings has focused on smart claims, risk reduction, and digital insurance distribution, while Kexinrongxin specializes in financial technology and information services for banks and securities [2] - The acquisition aims to leverage complementary business scenarios and customer resource synergy, integrating Zhongmiao's insurance technology capabilities with Kexinrongxin's banking system management experience [2] - The merger is expected to enhance business scale, leading to significant growth in annual revenue and profit levels, thereby boosting market confidence [2] Group 2: Resource Synergy - For Zhongmiao Holdings, the acquisition is a key step in its "financial technology ecosystem" strategy, allowing it to penetrate the high-barrier banking market and reduce reliance on a single business [3] - Kexinrongxin will benefit from Zhongmiao's backing, gaining access to richer technical resources and research investment, while also expanding its market reach beyond banks [3] Group 3: Future Outlook - Analysts believe that if the transaction is successful, it will enhance Zhongmiao Holdings' valuation logic in the capital market and potentially reshape the competitive landscape in the financial technology sector [4] - There is speculation about Kexinrongxin's potential to list on the Beijing Stock Exchange and Zhongmiao's possible market layout across the Hong Kong and Beijing exchanges [4]

Core Insights - The strategic investment by Zhongmiao Holdings in Kexinrongxin marks a significant transition from an insurance technology company to a comprehensive financial technology service provider, indicating a new phase in the company's development [1][2] Industry Overview - The Chinese financial technology industry is experiencing historic growth opportunities driven by the dual forces of the financial power strategy and domestic substitution trends, with a projected compound annual growth rate of 13.3% over the next five years [1] - By 2028, the market size is expected to exceed 650 billion yuan, reflecting the potential for financial technology integration [1] Strategic Collaboration - The acquisition is based on complementary business scenarios and customer resource synergy, allowing for the integration of Zhongmiao's insurance technology capabilities with Kexinrongxin's banking system management experience [2] - This collaboration aims to develop cross-industry financial digital products and enhance customer resource sharing, potentially increasing revenue streams for both companies [2] Resource Synergy - For Zhongmiao Holdings, this acquisition is a key step in its "financial technology ecosystem" strategy, reducing reliance on a single business and facilitating entry into the banking sector [3] - Kexinrongxin will benefit from Zhongmiao's support, gaining access to enhanced technology resources and the potential to expand its market reach beyond banking [3] Future Outlook - If the transaction is successfully completed, it could elevate Zhongmiao Holdings' valuation in the capital market and reshape the competitive landscape within the financial technology sector [4] - There is speculation about Kexinrongxin's potential to list on the Beijing Stock Exchange and Zhongmiao's possible market expansion strategies [4]

Core Viewpoint - Zhongmiao Holdings (01471.HK) plans to acquire a total of 55% equity in Beijing Kechuang Rongxin Technology Co., Ltd. from Li Yanbai and Chai Hong for a cash consideration of RMB 165 million, subject to adjustments as per the agreement terms [1] Group 1 - The acquisition is scheduled for August 22, 2025 [1] - The total consideration for the acquisition is RMB 165 million [1] - The equity stake being acquired is 55% [1]

Core Viewpoint - Zhongmiao Holdings (01471) plans to acquire a total of 55% equity in Beijing Kechuang Rongxin Technology Co., Ltd. from Li Yanbai and Chai Hong for a cash consideration of RMB 165 million, subject to adjustments according to the agreement [1] Group 1: Acquisition Details - The target company specializes in digital financial asset services, focusing on cash asset digitization in the banking sector [1] - The target company provides hardware and software related to second-generation currency issuance logistics management systems, centralized digital classification outsourcing services for RMB cash, and RMB serial number circulation management systems [1] - The acquisition is expected to strengthen the company's position in the financial asset digitization field and enhance its product line [1] Group 2: Strategic Implications - The acquisition will accelerate the digital upgrade of the company's insurance agency services, enhancing its research and development capabilities [1] - Following the acquisition, the target company will become a non-wholly-owned subsidiary, which is anticipated to promote capitalized results and improve the target company's market image [1] - The acquisition is expected to create new business growth opportunities for the target company [1]

Core Viewpoint - Zhongmiao Holdings (01471) plans to acquire a total of 55% equity in Beijing Kechuang Rongxin Technology Co., Ltd. from Li Yanbai and Chai Hong for a cash consideration of RMB 165 million, subject to adjustments as per the agreement [1] Group 1: Acquisition Details - The target company specializes in digital financial asset services, focusing on cash asset digitization in the banking sector [1] - The products and services offered by the target company include hardware and software related to second-generation currency issuance logistics management systems, centralized digital classification outsourcing services for RMB cash, and RMB serial number circulation management systems [1] Group 2: Strategic Implications - The acquisition is expected to strengthen the company's position in the financial asset digitization field and enrich its product line [1] - It aims to accelerate the digital upgrade of the company's insurance agency services, enhancing overall competitiveness and R&D capabilities [1] - Post-acquisition, the target company will become a non-wholly-owned subsidiary, which is anticipated to promote capitalized results, enhance market image, and create new business growth opportunities for the target company [1]

Core Viewpoint - Zhongmiao Holdings (01471.HK) has announced an agreement to acquire 55% of Beijing Kechuang Rongxin Technology Co., Ltd. for a cash consideration of RMB 165 million, which may be adjusted according to the terms of the agreement [1] Group 1: Acquisition Details - The target company is a limited liability company established in China and is listed on the New Third Board (stock code: 839037) [1] - The target company specializes in digital financial asset services, focusing on cash asset digitization for the banking sector [1] - The acquisition is expected to strengthen Zhongmiao's position in the financial asset digitization field and enhance its product offerings [1] Group 2: Strategic Implications - The acquisition will accelerate the digital upgrade of the company's insurance agency services, enhancing overall competitiveness [1] - Post-acquisition, the target company will become a non-wholly-owned subsidiary, which is anticipated to improve its market image and create new business growth opportunities [1] - The deal is expected to bolster the group's research and development capabilities [1]