[Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The company reported a slight revenue decrease and gross profit increase, but experienced a significant shift from profit to loss for the period and adjusted net loss Financial Highlights for the Six Months Ended June 30, 2025 (RMB '000) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 66,360 | 66,974 | -0.9 | | Gross Profit | 43,709 | 42,316 | 3.3 | | Loss/(Profit) for the Period | (1,769) | 4,328 | -140.9 | | Adjusted Net Loss/(Profit) | (1,769) | 4,328 | -140.9 | - Adjusted net profit is defined as profit for the period plus share-based compensation expenses (post-IPO restricted share unit scheme expenses); for the six months ended June 30, 2025, these compensation expenses were **zero**[2](index=2&type=chunk) [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Interim Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company's revenue slightly decreased, but gross profit increased; however, a shift from profit to loss occurred due to reduced other income, increased impairment losses, and positive income tax expense Key Profit or Loss Statement Data (RMB '000) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 66,360 | 66,974 | | Cost of Sales | (22,651) | (24,658) | | Gross Profit | 43,709 | 42,316 | | Other Income and Gains | 3,739 | 8,199 | | Selling and Distribution Expenses | (29,527) | (29,410) | | Administrative Expenses | (9,747) | (11,217) | | Research and Development Expenses | (6,774) | (6,042) | | Impairment Loss on Financial and Contract Assets | (1,156) | (8) | | Finance Costs | (107) | (128) | | Profit Before Tax | 84 | 3,708 | | Income Tax Expense/(Credit) | (1,853) | 620 | | Loss/(Profit) for the Period | (1,769) | 4,328 | | Loss/(Profit) Attributable to Owners of the Parent | (1,783) | 4,525 | | Basic Loss/Earnings Per Share | RMB (0.002) | RMB 0.004 | [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company's total comprehensive income for the period aligned with the loss for the period at RMB (1,769) thousand, a significant decrease from the RMB 4,328 thousand comprehensive income in the prior year Key Comprehensive Income Statement Data (RMB '000) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss/(Profit) for the Period | (1,769) | 4,328 | | Total Comprehensive Income for the Period | (1,769) | 4,328 | | Attributable to Owners of the Parent | (1,783) | 4,525 | | Attributable to Non-Controlling Interests | 14 | (197) | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, the company's total non-current assets decreased while total current assets slightly increased, driven by significant growth in financial assets at fair value through profit or loss and cash and cash equivalents, leading to improved liquidity through reduced current liabilities and enhanced net current assets Key Financial Position Statement Data (RMB '000) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Non-Current Assets | 53,575 | 66,700 | | Total Current Assets | 559,882 | 556,052 | | Total Current Liabilities | 77,565 | 84,166 | | Net Current Assets | 482,317 | 471,886 | | Total Assets Less Current Liabilities | 535,892 | 538,586 | | Total Non-Current Liabilities | 3,790 | 4,715 | | Net Assets | 532,102 | 533,871 | | Total Equity | 532,102 | 533,871 | - Among current assets, financial assets at fair value through profit or loss significantly increased from **RMB 10,240 thousand** as of December 31, 2024, to **RMB 76,538 thousand** as of June 30, 2025[6](index=6&type=chunk) - Cash and cash equivalents increased from **RMB 209,104 thousand** as of December 31, 2024, to **RMB 280,757 thousand** as of June 30, 2025[6](index=6&type=chunk) [Notes to the Interim Condensed Consolidated Financial Information](index=6&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB) [Basis of Presentation](index=6&type=section&id=%E5%91%88%E5%88%97%E5%9F%BA%E6%BA%96) The interim condensed consolidated financial information is prepared in accordance with HKAS 34 and should be read in conjunction with the annual financial statements for the year ended December 31, 2024, as it does not include all disclosures required for annual financial statements - The financial information is prepared in accordance with **HKAS 34 "Interim Financial Reporting"**[8](index=8&type=chunk) [Changes in Accounting Policies and Disclosures](index=6&type=section&id=%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E5%8F%8A%E6%8A%AB%E9%9C%B2%E8%AE%8A%E5%8B%95) The accounting policies used to prepare the interim financial information are consistent with the 2024 annual consolidated financial statements, with the only new adoption being the revised HKAS 21, which had no material impact due to the group's transactional currency convertibility - The revised **HKAS 21 "Lack of Exchangeability"** was adopted for the first time, but it had no impact on the interim condensed consolidated financial information as the Group's transactional currencies are convertible[9](index=9&type=chunk)[10](index=10&type=chunk) [Operating Segment Information](index=6&type=section&id=%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The chief operating decision maker reviews the financial results of the group as a whole, without separate operating segment financial information, and no geographical segment information is presented as all revenue and non-current assets are located in Mainland China; during the reporting period, Customer A and Customer B became major clients, while Customer C no longer accounted for over 10% of revenue - The chief operating decision maker reviews the Group's financial performance as a whole, and no separate operating segment information is presented[11](index=11&type=chunk) - All revenue and non-current assets are located in Mainland China, thus no geographical segment information is presented[12](index=12&type=chunk) Customers Accounting for Over 10% of Revenue (RMB '000) | Customer | 2025 | 2024 | | :--- | :--- | :--- | | Customer A | 11,771 | Not Applicable | | Customer B | 7,841 | Not Applicable | | Customer C | Not Applicable | 11,029 | [Revenue](index=7&type=section&id=%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, the Group's total revenue was RMB 66,360 thousand, with online advertising services accounting for the vast majority and recognized over time, while integrated marketing services revenue significantly decreased Disaggregated Revenue Information (RMB '000) | Revenue Stream | 2025 | 2024 | | :--- | :--- | :--- | | Online Advertising Services | 64,494 | 55,945 | | Integrated Marketing Services | 1,866 | 11,029 | | Total | 66,360 | 66,974 | - Revenue from online advertising services is primarily recognized **over time**, while integrated marketing services revenue is recognized at a **point in time** when services are transferred[15](index=15&type=chunk) - Online advertising services revenue is recognized when advertisements are published over a specified display period, with payments typically due within **30 to 180 days** after the billing date[17](index=17&type=chunk) - Performance obligations for integrated marketing services are satisfied upon completion of marketing activities and client confirmation, with payments typically due within **90 days** after the billing date[18](index=18&type=chunk) [Profit Before Tax](index=8&type=section&id=%E9%99%A4%E7%A8%85%E5%89%8D%E5%88%A9%E6%BD%A4) For the six months ended June 30, 2025, the Group's profit before tax significantly decreased to RMB 84 thousand, primarily due to reduced employee benefit expenses, increased R&D expenses, impairment of other receivables, and lower bank interest income Components of Profit Before Tax (RMB '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Cost of Services Provided | 22,651 | 24,658 | | Employee Benefit Expenses | 22,248 | 26,836 | | Depreciation of Property, Plant and Equipment | 1,093 | 944 | | Amortization of Intangible Assets | 481 | 829 | | Research and Development Expenses | 6,774 | 6,042 | | Net Exchange Difference | 1,356 | (1,343) | | Reversal of Impairment Loss on Trade Receivables | (1,332) | (40) | | Impairment of Other Receivables | 2,499 | – | | Bank Interest Income | (5,142) | (5,938) | [Income Tax](index=8&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85) The Group pays income tax at local rates in different jurisdictions, with Chinese subsidiaries enjoying a 15% preferential tax rate for high-tech enterprises and others paying at a 25% statutory rate; income tax expense significantly increased during the reporting period, mainly due to government tax refunds in the prior year - Entities in the Cayman Islands and British Virgin Islands are **exempt from income tax**[21](index=21&type=chunk)[22](index=22&type=chunk) - Hong Kong profits tax rate is **16.5%**, with some eligible subsidiaries paying **8.25%** on the first HKD 2,000,000 of assessable profits[23](index=23&type=chunk) - Chinese high-tech enterprise subsidiaries enjoy a **15% preferential corporate income tax rate**, while other Chinese subsidiaries pay at a **25% statutory tax rate**[24](index=24&type=chunk) Components of Income Tax Expense (RMB '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current - China Expense for the Period | 1,400 | 499 | | Under/(Over) Provision in Prior Years | 469 | (933) | | Deferred | (16) | (186) | | Total Tax Expense/(Credit) for the Period | 1,853 | (620) | [Dividends](index=9&type=section&id=%E8%82%A1%E6%81%AF) The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025[26](index=26&type=chunk) [Loss/Earnings Per Share Attributable to Owners of the Parent](index=9&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%99%AE%E9%80%9A%E6%AC%8A%E7%9B%8A%E6%8C%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%B5%E6%AF%8F%E8%82%A1%EF%BC%88%E虧%E6%90%8D%EF%BC%89%E2%88%95%E7%9B%88%E5%88%A9) For the six months ended June 30, 2025, the company's basic and diluted loss per share were both RMB (0.002), compared to earnings per share of RMB 0.004 in the prior year, reflecting a shift from profit to loss Loss/Earnings Per Share | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Basic Loss/Profit Per Share | RMB (0.002) | RMB 0.004 | | Diluted Loss/Profit Per Share | RMB (0.002) | RMB 0.004 | - Basic earnings per share are calculated based on the profit for the period attributable to owners of the parent and the weighted average number of ordinary shares outstanding during the period[27](index=27&type=chunk) - The Group had **no potentially dilutive ordinary shares** outstanding for the six months ended June 30, 2025, and 2024[28](index=28&type=chunk) [Trade and Bills Receivables](index=10&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E6%94%B6%E7%A5%A8%E6%93%9A) As of June 30, 2025, total trade and bills receivables amounted to RMB 66,187 thousand, a decrease from December 31, 2024; the Group generally offers a 180-day credit period and maintains strict control over outstanding receivables, with no significant concentration of credit risk Trade and Bills Receivables (RMB '000) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade Receivables | 61,937 | 82,155 | | Bills Receivable | 4,250 | 4,461 | | Total | 66,187 | 86,616 | - The credit period generally ranges up to **180 days**, and the Group maintains strict control over outstanding receivables with **no significant concentration of credit risk**[29](index=29&type=chunk) Ageing Analysis of Trade Receivables (RMB '000) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 30 days | 12,054 | 34,583 | | 31 to 90 days | 25,152 | 12,561 | | 91 to 180 days | 14,510 | 14,207 | | 181 to 365 days | 7,049 | 17,725 | | Over 1 year | 18,043 | 19,282 | | Total (Unimpaired) | 76,808 | 98,358 | | Impairment | (14,871) | (16,203) | | Total (Impaired) | 61,937 | 82,155 | [Trade and Bills Payables](index=11&type=section&id=%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E4%BB%98%E7%A5%A8%E6%93%9A) As of June 30, 2025, total trade and bills payables amounted to RMB 11,930 thousand, a significant decrease from December 31, 2024; trade payables are typically settled within 90 days and are non-interest bearing Ageing Analysis of Trade and Bills Payables (RMB '000) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 months | 11,867 | 6,142 | | 3 to 6 months | – | 14,769 | | 6 months to 1 year | 63 | – | | Total | 11,930 | 20,911 | - Trade payables are **non-interest bearing** and typically settled on **90-day terms**[31](index=31&type=chunk) - Bills payable have a maturity period of **six months**[32](index=32&type=chunk) [Share Capital](index=11&type=section&id=%E8%82%A1%E6%9C%AC) As of June 30, 2025, the company's authorized and issued and fully paid share capital remained unchanged at RMB 1,000 thousand and RMB 840 thousand, respectively Share Capital Composition (RMB '000) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Authorized Share Capital | 1,000 | 1,000 | | Issued and Fully Paid Share Capital | 840 | 840 | - The number of issued shares is **1,234,600,000 ordinary shares** with a par value of **USD 0.0001 per share**[33](index=33&type=chunk) [Commitments](index=11&type=section&id=%E6%89%BF%E6%93%94) As of the end of the reporting period, the Group had no capital commitments - As of the end of the reporting period, the Group had **no capital commitments**[33](index=33&type=chunk) [Approval of Financial Statements](index=11&type=section&id=%E6%89%B9%E5%87%86%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) The Board of Directors approved and authorized the publication of these interim condensed consolidated financial statements on August 26, 2025 - The Board of Directors approved and authorized the publication of the interim condensed consolidated financial statements on **August 26, 2025**[33](index=33&type=chunk) [Business Review and Outlook](index=12&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E8%88%87%E5%B1%95%E6%9C%9B) [Market Overview](index=12&type=section&id=%E5%B8%82%E5%A0%B4%E6%A6%82%E8%A7%88) In the first half of 2025, China's automotive industry achieved resilient growth amidst price competition and intelligent technology development, with passenger vehicle sales increasing by 10.8% year-on-year and new energy vehicle penetration exceeding 50% for the first time, while the AI marketing market is projected to reach RMB 66.9 billion with a 26.2% CAGR, and the automotive AI marketing segment is expected to surpass RMB 12 billion - National passenger vehicle sales reached **15.72 million units** in the first half of 2025, a year-on-year increase of approximately **10.8%**[34](index=34&type=chunk) - The market penetration rate of new energy vehicles exceeded **50%** for the first time[34](index=34&type=chunk) - From January to May 2025, the automotive industry's profit decreased by **11.9%** year-on-year, prompting a shift towards "value competition" and AI technology upgrades[34](index=34&type=chunk) - The total size of China's AI marketing market is projected to reach **RMB 66.9 billion** in 2025, with a compound annual growth rate of **26.2%**[34](index=34&type=chunk) - AI applications in the automotive vertical account for **15% to 18%** of the overall AI marketing market, with an estimated scale exceeding **RMB 12 billion** in 2025[34](index=34&type=chunk) - The online penetration rate of the automotive advertising market exceeded **55%** in the first half of 2025, projected to rise to **58.6%** for the full year[35](index=35&type=chunk) [Group Overview](index=12&type=section&id=%E6%9C%AC%E9%9B%86%E5%9C%98%E6%A6%82%E8%A7%88) Established in 2015, the Group is a leading automotive information and digital marketing service provider in China, committed to offering full-scenario marketing solutions through a "content + technology + ecosystem" model; in February 2025, it rebranded as AI X Tech Inc., signaling a strategic upgrade to an AI-driven technology platform focusing on "intelligent technology empowerment, ecosystem value reconstruction" - The Group was established in **September 2015** and listed on the Main Board of the Stock Exchange in **January 2020**[36](index=36&type=chunk) - The Group has become a leading automotive information and digital marketing service provider in China, offering full-scenario marketing solutions through a **"content + technology + ecosystem" model**[36](index=36&type=chunk) - In **February 2025**, the English name was officially changed to AI X Tech Inc., fully upgrading to an **AI-driven technology platform**[36](index=36&type=chunk) - Accelerating the implementation of three core strategies: **AI technology breakthroughs, deepening content matrix, and synergistic development in lower-tier markets**[36](index=36&type=chunk)[40](index=40&type=chunk) [Business Overview](index=13&type=section&id=%E6%A5%AD%E5%8B%99%E6%A6%82%E8%A7%88) For the six months ended June 30, 2025, the Group's operating revenue slightly decreased by 0.9% to RMB 66.4 million, while online advertising services revenue grew by 15.3%; gross profit increased by 3.3% to RMB 43.7 million, but the period saw a loss of RMB 1.8 million, primarily due to surging R&D investments in AI platforms and virtual interaction technologies during strategic transformation - Operating revenue was approximately **RMB 66.4 million**, a year-on-year decrease of approximately **0.9%**[38](index=38&type=chunk) - Online advertising services revenue was approximately **RMB 64.5 million**, a year-on-year increase of approximately **15.3%**[38](index=38&type=chunk) - Gross profit was approximately **RMB 43.7 million**, a year-on-year increase of approximately **3.3%**[38](index=38&type=chunk) - Loss for the period was approximately **RMB 1.8 million**, primarily due to surging R&D investments in AI platforms and virtual interaction technologies during the strategic transformation period, focusing on platform technology upgrades and ecosystem reconstruction[38](index=38&type=chunk) [Key Business Milestones](index=13&type=section&id=%E6%A5%AD%E5%8B%99%E9%87%8D%E8%A6%81%E9%87%8C%E7%A8%8B%E7%A2%91) The Group continues to consolidate its leading position in vertical sectors, deepen its "technology + content" dual-engine strategy, expand its user base, and fully implement its self-developed AIGC product "AI X," driving the company's transformation into an "AI + ecosystem marketing technology platform" - Continuously deepening the **"technology + content" dual-engine strategy**, building a comprehensive content system through an upgraded full-scenario media matrix, and precisely reaching users with intelligent distribution technology[39](index=39&type=chunk) - Fully launched the self-developed AIGC product **"AI X,"** with core capabilities including diverse content generation, intelligent distribution, precise efficiency control, and data-driven empowerment[41](index=41&type=chunk) - The **"AI X" distribution system** was fully operational in 2025, driving the Group's transformation from a "vertical media service provider" to an **"AI + ecosystem marketing technology platform"**[41](index=41&type=chunk) [Outlook](index=14&type=section&id=%E5%B1%95%E6%9C%9B) In the second half of 2025, the Group will continue to implement its "AI-native driven, ecosystem-wide leap" strategy, reshape its leadership in the vertical media ecosystem, increase AI R&D investment, and proactively plan for ecosystem M&A and strategic collaborations to strengthen its technological foundation and expand market reach - Reshaping vertical media ecosystem leadership: Building a **"professional evaluation + user co-creation + AI-assisted creation" three-dimensional content matrix** based on the "AI X" intelligent engine, deepening data interoperability with mainstream platforms, and achieving full-chain automation[42](index=42&type=chunk) - Increasing AI R&D investment: Systematically investing in AI technology infrastructure, with generative AI as the core engine, to upgrade the technology architecture from tool empowerment to a **"decision-making hub + ecological collaboration"**[43](index=43&type=chunk) - Proactive planning for ecosystem M&A and strategic collaborations: Focusing on technological synergy, scenario entry value, and financial stability to select targets and build a **"technology-scenario-data" closed loop**[44](index=44&type=chunk)[47](index=47&type=chunk) [Financial Review](index=15&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) [Revenue](index=15&type=section&id=%E6%94%B6%E5%85%A5) For the six months ended June 30, 2025, total revenue was approximately RMB 66.4 million, a year-on-year decrease of 0.9%, primarily due to the Group's strategic focus on core business development and proactive scaling back of non-core operations - Total revenue was approximately **RMB 66.4 million**, a year-on-year decrease of approximately **0.9%**[44](index=44&type=chunk) - The slight revenue fluctuation primarily stemmed from a strategic focus on core businesses and the proactive scaling back of non-core operations[44](index=44&type=chunk) [Cost of Sales](index=15&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) Cost of sales decreased by approximately 8.1% to RMB 22.7 million, mainly due to a strategic focus on core businesses, improved marketing efficiency, reduced cost input for non-core businesses, and refined cost control - Cost of sales was approximately **RMB 22.7 million**, a year-on-year decrease of approximately **8.1%**[45](index=45&type=chunk) - The reduction in cost of sales was primarily attributed to a strategic focus on core businesses, improved marketing efficiency, reduced costs for non-core businesses, and refined cost control[45](index=45&type=chunk) [Gross Profit and Gross Profit Margin](index=15&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) Gross profit increased by 3.3% to RMB 43.7 million, and the gross profit margin improved from 63.2% to 65.9%, primarily due to the Group's firm focus on high-margin core businesses and optimization of product and customer structures - Gross profit was approximately **RMB 43.7 million**, a year-on-year increase of approximately **3.3%**[46](index=46&type=chunk) - Gross profit margin increased from **63.2% to 65.9%**[46](index=46&type=chunk) - The increase in both gross profit and gross profit margin was due to a focus on high-margin core businesses and optimization of product and customer structures[46](index=46&type=chunk) [Other Income and Gains](index=16&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E6%94%B6%E7%9B%8A) Other income and gains decreased by 54.4% to RMB 3.7 million, primarily affected by foreign exchange market fluctuations and a reduction in wealth management income due to general market interest rate cuts - Other income and gains were approximately **RMB 3.7 million**, a year-on-year decrease of approximately **54.4%**[48](index=48&type=chunk) - The change was primarily affected by foreign exchange market fluctuations and a general decrease in wealth management income due to market benchmark interest rate reductions[48](index=48&type=chunk) [Selling and Distribution Expenses](index=16&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E5%88%86%E9%8A%B7%E6%94%AF%E5%87%BA) Selling and distribution expenses were approximately RMB 29.5 million, a slight year-on-year increase of 0.4%, remaining largely consistent with the prior year - Selling and distribution expenses were approximately **RMB 29.5 million**, a year-on-year increase of approximately **0.4%**, remaining largely stable[49](index=49&type=chunk) [Administrative Expenses](index=16&type=section&id=%E8%A1%8C%E6%94%BF%E8%B2%BB%E7%94%A8) Administrative expenses decreased by 13.1% to RMB 9.7 million, primarily due to organizational structure optimization and improved operational efficiency from digital transformation - Administrative expenses were approximately **RMB 9.7 million**, a year-on-year decrease of approximately **13.1%**[50](index=50&type=chunk) - The decrease was primarily due to overall organizational structure optimization and improved operational efficiency resulting from digital transformation initiatives[50](index=50&type=chunk) [Research and Development Expenses](index=16&type=section&id=%E7%A0%94%E7%99%BC%E8%B2%BB%E7%94%A8) Research and development expenses increased by 12.1% to RMB 6.8 million, primarily due to the Group's strategic intensification of investment in core AI marketing technologies to strengthen long-term technological barriers - Research and development expenses were approximately **RMB 6.8 million**, a year-on-year increase of approximately **12.1%**[51](index=51&type=chunk) - The increase was primarily due to strategic intensification of investment in core AI marketing technologies to strengthen long-term technological barriers[51](index=51&type=chunk) [Finance Costs](index=16&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) Finance costs were approximately RMB 0.1 million, consistent with the prior year - Finance costs were approximately **RMB 0.1 million**, equivalent to the prior year[52](index=52&type=chunk) [Income Tax Expense](index=16&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense was approximately RMB 1.9 million, a significant year-on-year increase of 398.9%, primarily because the prior year benefited from government tax refunds, while the actual tax rate for the reporting period remained consistent with previous periods - Income tax expense was approximately **RMB 1.9 million**, a year-on-year increase of approximately **398.9%**[53](index=53&type=chunk) - The increase was primarily due to government tax refunds enjoyed in the prior year, with the actual tax rate for the reporting period remaining consistent with previous periods[53](index=53&type=chunk) [Loss/Profit for the Period](index=17&type=section&id=%E6%9C%9F%E5%85%A7%EF%BC%88%E虧%E6%90%8D%EF%BC%89%E2%88%95%E5%88%A9%E6%BD%A4) Loss attributable to owners of the Group was approximately RMB 1.8 million, a 140.9% decrease compared to a profit of RMB 4.3 million in the prior year, mainly due to reduced other income and gains and increased income tax expense - Loss attributable to owners of the Group was approximately **RMB 1.8 million**, a year-on-year decrease of approximately **140.9%**[54](index=54&type=chunk) - The loss was primarily due to reduced other income and gains and increased income tax expense[54](index=54&type=chunk) [Other Financial Information (Non-IFRS Measure): Adjusted Net Profit](index=17&type=section&id=%E5%85%B6%E4%BB%96%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%EF%BC%88%E9%9D%9E%E3%80%8A%E5%9C%8B%E9%9A%9B%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87%E3%80%8B%E6%8C%87%E6%A8%99%EF%BC%89%EF%BC%9A%E7%B6%93%E8%AA%BF%E6%95%B4%E7%B4%94%E5%88%A9) Adjusted net profit, a non-IFRS measure, provides a clearer perspective on operating performance; for the six months ended June 30, 2025, adjusted net profit was consistent with the loss for the period, both at RMB (1,769) thousand, representing a 140.9% year-on-year decrease - Adjusted net profit is defined as profit for the period plus share-based compensation expenses[55](index=55&type=chunk) - This indicator aims to provide useful information regarding financial position and operating results but should not be considered in isolation or as a substitute for analysis under IFRS[55](index=55&type=chunk) Non-IFRS Measure Adjusted Net Profit (RMB '000) | Indicator | 2025 | Percentage of Total Revenue | 2024 | Percentage of Total Revenue | Year-on-Year Percentage Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Profit for the Period | (1,769) | -2.7 | 4,328 | 6.5 | -140.9 | | Add back: Share-based Compensation Expenses | 0 | 0 | 0 | 0 | 0 | | Non-IFRS Measure Adjusted Net Profit | (1,769) | -2.7 | 4,328 | 6.5 | -140.9 | [Liquidity and Capital Resources](index=17&type=section&id=%E6%B5%81%E5%8B%95%E6%80%A7%E5%8F%8A%E8%B3%87%E6%9C%AC%E4%BE%86%E6%BA%90) [Liquidity Overview](index=17&type=section&id=%E6%B5%81%E5%8B%95%E6%80%A7%E6%A6%82%E8%A7%88) As of June 30, 2025, the Group's current assets were approximately RMB 559.9 million, current liabilities were approximately RMB 77.6 million, and the current ratio improved to 7.2 times, indicating strong liquidity; cash and cash equivalents increased to RMB 280.8 million, with a gearing ratio of 15.3% - Current assets were approximately **RMB 559.9 million** (December 31, 2024: RMB 556.1 million)[58](index=58&type=chunk) - Current liabilities were approximately **RMB 77.6 million** (December 31, 2024: RMB 84.2 million)[58](index=58&type=chunk) - The current ratio improved from **6.6 times** as of December 31, 2024, to **7.2 times** as of June 30, 2025[58](index=58&type=chunk) - Cash and cash equivalents were approximately **RMB 280.8 million**, primarily from net cash generated from operating activities[59](index=59&type=chunk) - The gearing ratio was **15.3%** (December 31, 2024: 16.6%)[59](index=59&type=chunk) [Cash Flow Statement](index=18&type=section&id=%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June 30, 2025, net cash generated from operating activities significantly increased to RMB 27.3 million; net cash generated from investing activities was RMB 46.2 million, mainly from the sale of time deposits; and net cash used in financing activities was RMB 0.5 million Key Cash Flow Statement Data (RMB '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 27,341 | 11,559 | | Net Cash Generated from Investing Activities | 46,188 | 13,354 | | Net Cash Used in Financing Activities | (520) | (1,200) | | Net Increase in Cash and Cash Equivalents | 73,009 | 23,713 | | Cash and Cash Equivalents at Beginning of Period | 209,104 | 369,880 | | Cash and Cash Equivalents at June 30 | 280,757 | 394,936 | - Net cash generated from operating activities was approximately **RMB 27.3 million**, primarily comprising cash generated from operations of approximately **RMB 25.0 million** and interest and income tax refunds of **RMB 4.3 million**[62](index=62&type=chunk) - Net cash generated from investing activities was approximately **RMB 46.2 million**, mainly from proceeds from the sale of time deposits of approximately **RMB 205.2 million**, partially offset by purchases of financial assets and time deposits[63](index=63&type=chunk) - Net cash used in financing activities was approximately **RMB 0.5 million**, primarily comprising payments for lease liabilities[64](index=64&type=chunk) [Capital Expenditure](index=19&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, capital expenditure primarily involved the acquisition of property, plant and equipment, amounting to RMB 2,859 thousand, a significant increase from the prior year, while intangible asset capital expenditure was zero Capital Expenditure (RMB '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Property, Plant and Equipment | 2,859 | 732 | | Intangible Assets | – | 6,001 | - Capital expenditure primarily includes the acquisition of property, plant and equipment (such as computer and electronic equipment) and intangible assets like computer software and website usage rights[65](index=65&type=chunk) [Foreign Exchange Fluctuation Risk](index=19&type=section&id=%E5%BD%99%E7%8E%87%E6%B3%A2%E5%8B%95%E9%A2%A8%E9%9A%AA) The Group's operations are primarily conducted in China, with most transactions settled in RMB, and the Board believes there is no significant foreign exchange risk; no derivative activities or hedging of foreign exchange risk were undertaken during the reporting period - The Group's operations are primarily conducted in China, with most transactions settled in RMB, and there is **no significant foreign exchange risk**[67](index=67&type=chunk) - No derivative activities or hedging of foreign exchange risk were undertaken during the reporting period[67](index=67&type=chunk) [Treasury Policy](index=19&type=section&id=%E5%BA%AB%E5%8B%99%E6%94%BF%E7%AD%96) The Group adopts a prudent financial management approach, with the majority of cash and cash equivalents held by Chinese financial institutions, and manages liquidity risk by monitoring the maturity dates of financial liabilities and assets, as well as projected operating cash flows - The Group adopts a **prudent financial management approach**, with the vast majority of cash and cash equivalents held by major financial institutions in China[68](index=68&type=chunk) - Liquidity risk is managed by monitoring the risk of funding shortfalls[68](index=68&type=chunk) [Pledge of Assets](index=19&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group had not pledged any assets as collateral for bank borrowings or any other financing activities - As of June 30, 2025, the Group had **not pledged any assets**[69](index=69&type=chunk) [Significant Investments, Material Acquisitions and Disposals of Subsidiaries and Capital Assets](index=19&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2) The Group's financial asset investments primarily include unlisted investment funds and wealth management products; as of June 30, 2025, the Group held a 58.79% interest in Ruibo Fund with an investment cost of RMB 30,000 thousand and a fair value of RMB 25,571 thousand, representing approximately 4.2% of the Group's total assets; there were no other significant investments, acquisitions, or disposals during the reporting period - Financial asset investments primarily include **unlisted investment funds and wealth management product investments**[70](index=70&type=chunk) Significant Investment: Ruibo Fund | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Percentage of Interest Held | 58.79% | 58.79% | | Investment Cost (RMB '000) | 30,000 | 30,000 | | Fair Value (RMB '000) | 25,571 | 25,571 | | Percentage of Group's Total Assets | Approx. 4.2% | - | - During the reporting period, the Group held **no other significant investments** and made **no material acquisitions or disposals** of subsidiaries, associates, and joint ventures[72](index=72&type=chunk) [Contingent Liabilities](index=20&type=section&id=%E6%88%96%E6%9C%89%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had **no material contingent liabilities**[73](index=73&type=chunk) [Employees and Remuneration Policy](index=20&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group had 77 full-time employees, a decrease from 126 in the prior year, with employee benefit expenses of approximately RMB 22.2 million; the Group has established effective performance appraisal and incentive plans, and adopted a post-IPO restricted share unit scheme to attract and retain talent - As of June 30, 2025, the Group had **77 full-time employees** (June 30, 2024: 126 employees)[74](index=74&type=chunk) - For the six months ended June 30, 2025, employee benefits and expenses were approximately **RMB 22.2 million**[74](index=74&type=chunk) - The Group has established an effective employee performance appraisal system and employee incentive plan, and adopted a post-IPO restricted share unit scheme to attract and retain talent and drive overall performance[75](index=75&type=chunk) [Material Events After the Reporting Period](index=21&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A0%85) There were no material events after June 30, 2025, that would significantly impact the operating and financial results up to the date of this announcement - There were **no material events** after June 30, 2025[76](index=76&type=chunk) [Interim Dividend](index=21&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board of Directors resolved not to pay any interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board of Directors resolved **not to pay any interim dividend** for the six months ended June 30, 2025[77](index=77&type=chunk) [Corporate Governance](index=21&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The company is committed to maintaining high standards of corporate governance and complies with the Corporate Governance Code set out in Appendix C1 of the Listing Rules; despite the Chairman and Chief Executive Officer roles being held by Mr. Xu, deviating from Code Provision C.2.1, the Board believes this arrangement ensures consistent strategic planning and management oversight for the Group - The company has adopted the **Corporate Governance Code** set out in Appendix C1 of the Listing Rules[78](index=78&type=chunk) - Mr. Xu concurrently serves as the Chairman and Chief Executive Officer, deviating from Code Provision C.2.1, but the Board believes this arrangement ensures consistent leadership and efficient strategic planning for the Group[78](index=78&type=chunk) - The Board of Directors comprises a balanced mix of members with diverse experience and industry backgrounds, including **three independent non-executive directors**[79](index=79&type=chunk) [Standard Code for Securities Transactions](index=22&type=section&id=%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%88%99) The company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions, and all directors confirmed their compliance with the code during the reporting period - The company has adopted the **Standard Code** set out in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions[80](index=80&type=chunk) - All directors confirmed their compliance with the Standard Code throughout the reporting period[80](index=80&type=chunk) [Purchase, Sale or Redemption of the Company's Shares](index=22&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%82%A1%E4%BB%BD) During the reporting period, neither the company nor any of its subsidiaries purchased, redeemed, or sold any of the company's listed securities; as of June 30, 2025, and up to the date of this announcement, no restricted share units were granted, and the company held no treasury shares - During the reporting period, neither the company nor any of its subsidiaries purchased, redeemed, or sold any of the company's listed securities[81](index=81&type=chunk) - As of June 30, 2025, and up to the date of this announcement, **no restricted share units were granted**[81](index=81&type=chunk) - As of June 30, 2025, the company held **no treasury shares**[82](index=82&type=chunk) [Audit Committee](index=22&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, comprising three independent non-executive directors, has reviewed the accounting principles and practices adopted by the Group and confirmed that the interim results for the six months ended June 30, 2025, were properly prepared - The Audit Committee comprises **three independent non-executive directors**: Mr. Wu Haoyun (Chairman), Mr. Xu Xiangyang, and Mr. Sun Yong[83](index=83&type=chunk) - The Audit Committee has reviewed the interim condensed consolidated financial statements and the interim results announcement, deeming them properly prepared in accordance with relevant accounting standards, rules, and regulations[83](index=83&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=22&type=section&id=%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This interim results announcement has been published on the Stock Exchange website and the company's website; the interim report will be dispatched to shareholders and published on the Stock Exchange and company websites in due course as required - The interim results announcement has been published on the Stock Exchange website **www.hkexnews.hk** and the company's website **www.cheshi.com**[84](index=84&type=chunk) - The interim report will be dispatched to shareholders and published on the Stock Exchange and the company's website in due course as required[84](index=84&type=chunk) [Definitions](index=23&type=section&id=%E9%87%8B%E7%BE%A9) This section provides definitions for key terms used throughout the interim results announcement - This section provides definitions for key terms used in the interim results announcement, including AI, Audit Committee, Board, Corporate Governance Code, Chairman, China, the Company, Directors, the Group, Hong Kong, HK$, Listing Date, Listing Rules, Mr. Xu, Standard Code, Post-IPO Restricted Share Unit Scheme, R&D, RMB, Reporting Period, SaaS, Shares, Shareholders, Stock Exchange, THB, US$, and Percentage[85](index=85&type=chunk)[86](index=86&type=chunk) [Board of Directors](index=24&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83) This section lists the members of the Board of Directors, including executive and independent non-executive directors - The Board of Directors includes Executive Directors Mr. Xu Chong, Mr. Liu Lei, Mr. Lin Yuqi, and Ms. Zhang Nan; and Independent Non-Executive Directors Mr. Xu Xiangyang, Mr. Sun Yong, and Mr. Wu Haoyun[87](index=87&type=chunk)

Group 1 - The company, CheShi KeJi (01490.HK), will hold a board meeting on August 26, 2025, to review and approve its interim results for the six months ending June 30, 2025 [1] - The meeting will also consider the proposal for the distribution of an interim dividend, if any [1]

車市科技有限公司（「本公司」，連同其附屬公司及綜合聯屬實體為「本集團」）董事 （「董事」）會（「董事會」）謹此宣佈，本公司將於2025年8月26日（星期二）舉行董事 會會議，藉以（其中包括）批准本集團截至2025年6月30日止六個月之未經審核中 期業績以供發佈，及考慮派發中期股息（如有）。 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，並明確表示概不就因本公告全部或任何部份內容而產生或因依賴 該等內容而引致的任何損失承擔任何責任。 AI X Tech Inc. 車市科技有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1490） 董事會召開日期 承董事會命 車市科技有限公司 主席兼首席執行官 徐翀 中國•北京，2025年8月14日 於本公告日期，董事會包括執行董事徐翀先生、劉磊先生、林渝奇先生及張男女 士；以及獨立非執行董事徐向陽先生、孫勇先生及吳浩雲先生。 ...

FF301 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: 車市科技有限公司(於開曼群島註冊成立的有限公司） 呈交日期: 2025年8月1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) | 01490 | 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 | | 0.0001 USD | | 1,000,000 | | 增加 / 減少 (-) | | | 0 | | USD | | 0 | | 本月底結存 | | 10,000,000,000 | USD | | 0.0001 USD | | 1,000,000 | 本月底法定/註冊股本總額： USD ...

Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue decreased to RMB 151.851 million, a decline of 2.6% compared to RMB 155.358 million in 2023[9] - The gross profit for the same period was RMB 85.850 million, representing a significant drop of 29.5% from RMB 121.784 million in 2023[9] - The profit attributable to owners of the company fell sharply to RMB 2.692 million, down 93.7% from RMB 42.884 million in 2023[9] - Adjusted net profit for 2024 was RMB 2.314 million, a decrease of 94.4% compared to RMB 41.413 million in 2023[9] - Online advertising service revenue for the fiscal year ending December 31, 2024, was approximately RMB 119.2 million, representing a decline of about 23.3% compared to the same period in 2023[15] - The company's net profit for the fiscal year ending December 31, 2024, was approximately RMB 2.3 million, a significant decrease of about 94.4% compared to the same period in 2023[15] - The gross margin decreased from approximately 78.4% for the fiscal year ending December 31, 2023, to about 56.5% for the fiscal year ending December 31, 2024[29] - Net profit for the year was approximately RMB 23 million, a decrease of about RMB 391 million (or 94.4%) due to strategic transformation focusing on platform technology upgrades and increased R&D in AI and virtual interaction technologies[39] Assets and Liabilities - Total assets increased to RMB 622.752 million, up 2.0% from RMB 609.599 million in 2023[9] - Total liabilities rose to RMB 88.881 million, an increase of 14.4% from RMB 77.664 million in 2023[9] - Current assets increased to approximately RMB 5,561 million, a rise of about RMB 15 million (or 0.3%), mainly due to increased prepayments[44] - Current liabilities increased to approximately RMB 842 million, up by about RMB 87 million (or 11.4%) due to increased trade payables[44] - As of December 31, 2024, the company has no pledged assets as collateral for bank loans or other financing activities[50] - The company reported no bank borrowings as of December 31, 2024, consistent with the previous year[101] Strategic Focus and Development - The company is focusing on AI-driven technology upgrades, including the development of intelligent advertising matching systems and virtual interaction tools[14] - The company aims to expand its content matrix by enhancing short video, live streaming, and new energy content to create immersive consumer decision-making scenarios[14] - The company plans to launch the "AI X" distribution system in 2025, transitioning from a "vertical media service provider" to an "AI + ecological marketing technology platform"[18] - The company aims to enhance its AI research and development investments, focusing on building an AI-native strategic foundation to drive comprehensive intelligent upgrades[21] - The company is seeking strategic partnerships and acquisitions to create a closed loop of "technology - scenario - data" in the automotive industry's intelligent and ecological transformation[22] Marketing and Advertising Trends - The automotive industry in China is projected to see a production and sales increase of 4.3% and 4.0%, respectively, in 2024, with a significant focus on new energy vehicles[11] - The online automotive advertising market in China is expected to exceed RMB 100 billion in 2024, with online advertising penetration surpassing 50% for the first time[11] - The company is focusing on expanding its user base and enhancing marketing efficiency through a dual-engine strategy of "technology + content" in the automotive vertical media sector[16] Employee and Governance - The company has established a competitive compensation system to attract and motivate employees, linking their remuneration to overall performance[94] - The company has established an effective employee performance evaluation system and incentive plan, linking employee compensation to overall performance and contributions to business operations[57] - The company has a total of 81 full-time employees as of December 31, 2024, with most located in China[56] - The company has appointed independent non-executive directors with initial terms of three years, automatically renewable unless terminated with three months' notice[109] - The board believes its current composition meets the business development needs and provides valuable advice and oversight[199] Compliance and Risk Management - The company has complied with all relevant laws and regulations that significantly impact its operations as of December 31, 2024[88] - The company faced various risks in its operations, including specific risks related to the online automotive advertising industry and regulatory environment[90] - The independent non-executive directors have reviewed the contractual arrangements and deemed them fair and reasonable, aligning with the overall interests of the company and its shareholders[173] Shareholder Information - For the fiscal year ending December 31, 2024, the top five customers contributed approximately 46.0% of the total revenue, up from 39.7% in 2023, with the largest customer accounting for 21.4% of total revenue, compared to 11.7% in 2023[92] - As of December 31, 2024, the company has available reserves of approximately RMB 387 million, an increase from RMB 375 million as of December 31, 2023[98] - Major shareholders include Cheshi Holdings, holding 802,500,000 shares (65.0%), and The Core Trust Company Limited, holding 80,000,000 shares (6.5%)[121] Corporate Governance - The company has adopted the Corporate Governance Code as its own governance framework, complying with most of its best practices[185] - The audit committee consists of three independent non-executive directors, ensuring compliance with applicable accounting principles and standards[184] - The board will review corporate governance policies and compliance with the Corporate Governance Code annually[190] Environmental and Social Responsibility - The company has implemented environmental protection measures and encourages employees to reduce energy consumption and waste[89] - The company has not made any charitable donations during the reporting period, consistent with the previous year[175]

Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of RMB 151,851,000, a decrease of 2.3% compared to RMB 155,358,000 in 2023[4] - Gross profit for the same period was RMB 85,850,000, reflecting a significant decline of 29.5% from RMB 121,784,000 in the previous year[4] - The profit attributable to equity holders of the parent company dropped dramatically by 93.7% to RMB 2,692,000 from RMB 42,884,000 in 2023[4] - Adjusted net profit decreased by 94.4% to RMB 2,314,000 compared to RMB 41,413,000 in the prior year[4] - The company reported a pre-tax profit of RMB 3,410,000, down from RMB 42,520,000 in 2023[5] - Total comprehensive income for the year was RMB 2,350,000, a sharp decline from RMB 41,326,000 in the previous year[6] - Total other income for 2024 is RMB 13,594,000, down from RMB 16,148,000 in 2023, representing a decrease of about 15.9%[27] - The group's profit before tax for 2024 is RMB 3,410,000, a significant decrease from RMB 42,520,000 in 2023, reflecting a decline of approximately 92%[35] - The basic earnings per share for the year ended December 31, 2024, is RMB 2,692,000, a sharp decline from RMB 42,884,000 in 2023, indicating a decrease of around 93.7%[39] - The net profit for the fiscal year ending December 31, 2024, was approximately RMB 2.3 million, a significant decrease of about 94.4% compared to the previous year[54] Revenue Breakdown - For the fiscal year ending December 31, 2024, total revenue reached RMB 151.851 million, with online advertising services contributing RMB 119.160 million and integrated marketing services contributing RMB 32.546 million[21] - Online advertising service revenue for the fiscal year ending December 31, 2024, was approximately RMB 119.2 million, representing a decrease of about 23.3% year-over-year[54] - Major client A, providing integrated marketing services, generated revenue of RMB 32.546 million in 2024, while major client B, offering online advertising services, contributed RMB 18.246 million in 2023[20] - The company reported a decrease in recognized revenue from contract liabilities for online advertising services, with RMB 6.232 million recognized in 2024 compared to RMB 7.166 million in 2023[22] Assets and Liabilities - As of December 31, 2024, total non-current assets amounted to RMB 66,700,000, an increase from RMB 54,986,000 in 2023[7] - Current assets totaled RMB 556,052,000, slightly up from RMB 554,613,000 in the previous year[7] - The company's total liabilities increased to RMB 84,166,000 from RMB 75,547,000 in 2023, indicating a rise in current liabilities[8] - The equity attributable to equity holders of the parent company was RMB 537,415,000, a marginal increase from RMB 535,101,000 in 2023[8] - As of December 31, 2024, trade receivables amounted to RMB 82,155 thousand, a decrease of 12.7% from RMB 94,172 thousand in 2023[42] - The aging analysis of trade receivables shows that 30 days overdue receivables increased to RMB 34,583 thousand in 2024 from RMB 23,552 thousand in 2023, representing a 47.0% increase[42] - The expected credit loss for trade receivables as of December 31, 2024, was RMB 16,203 thousand, up 32.5% from RMB 12,245 thousand in 2023[43] - Trade payables increased significantly to RMB 20,911 thousand in 2024 from RMB 10,005 thousand in 2023, marking a 109.5% increase[46] Research and Development - Research and development expenses for 2024 amount to RMB 4,095,000, up from RMB 3,701,000 in 2023, marking an increase of approximately 10.7%[28] - The group’s main business costs increased by approximately RMB 32.4 million (or 96.6%) to about RMB 66.0 million, attributed to ongoing optimization of advertising structure and digital transformation initiatives[62] - Research and development expenses rose by approximately RMB 0.8 million (or about 7.5%) to RMB 11.9 million, reflecting increased investment in AI business and technology upgrades[67] Strategic Initiatives - The company has launched its self-developed AIGC product "AI X," which includes capabilities for diverse content generation and intelligent distribution, set to be fully operational by 2025[56] - The company aims to enhance its vertical media ecosystem leadership by evolving from PGC to a collaborative model of AI+UGC+PGC[58] - The company plans to increase investment in AI research and development to build an AI-native strategic foundation, focusing on intelligent creation, distribution, and attribution[59] - The company is seeking strategic partnerships and acquisitions to create a closed loop of "technology - scenario - data" in the automotive industry[60] - The company has established a collaboration with Xinhua News Agency to create a dedicated automotive column, enhancing industry communication[57] - The company is focusing on expanding its user base and enhancing advertising effectiveness through a comprehensive content ecosystem and distribution efficiency[55] Governance and Compliance - The company has adopted the Corporate Governance Code and has complied with most of its best practices, except for the separation of the roles of Chairman and CEO[93] - The board consists of independent non-executive directors with diverse backgrounds, accounting for over one-third of the board members[94] - The audit committee, composed of three independent non-executive directors, has reviewed the applicable accounting principles and the consolidated financial statements for the year ending December 31, 2024[98] - The company's auditor, Ernst & Young, confirmed that the financial figures in the preliminary announcement align with the consolidated financial statements prepared for the year[99] Future Outlook - The Chinese automotive industry is projected to produce and sell 31.5 million and 31.3 million passenger vehicles in 2024, reflecting year-on-year growth of 4.3% and 4.0% respectively[51] - The penetration rate of new energy vehicles in China is expected to exceed 35% in 2024, with production and sales surpassing 12 million units[51] - The online automotive advertising market in China is anticipated to exceed RMB 100 billion in 2024, with online advertising penetration surpassing 50% for the first time[51] Miscellaneous - The company does not recommend the distribution of any final dividend for the year ended December 31, 2024, consistent with 2023[36] - The group has no significant contingent liabilities as of December 31, 2024[86] - The group employed 81 full-time employees as of December 31, 2024, with employee benefits and expenses amounting to approximately RMB 47 million[87] - The company will hold its annual general meeting on May 22, 2025[102]

Automotive Industry Performance - As of June 30, 2024, China's passenger car production and sales reached approximately 11.9 million and 12.0 million units, representing year-on-year growth of 5.4% and 6.3% respectively[6] - The production and sales of new energy vehicles (NEVs) in China reached 4.9 million units each, with year-on-year growth of 30.1% and 32%, accounting for 35.2% of total new car sales[6] - China's total vehicle exports amounted to approximately 2.8 million units, reflecting a year-on-year increase of 30.5%, while NEV exports reached 0.6 million units, up 13.2% year-on-year[6] Online Advertising Market - The online automotive advertising market in China is projected to grow from RMB 568 billion in 2020 to RMB 1,164 billion by 2025, with a compound annual growth rate (CAGR) of 15.4%[6] - The online advertising penetration rate in China's automotive sector is expected to reach 58.6% by 2025, with a CAGR of 5.14%[6] Company Strategy and Development - The company aims to become a "super connector" in the automotive industry by leveraging digitalization and collaboration strategies to build an efficient industrial cooperation network[7] - The company has transitioned into the mobility business market since September 2021, focusing on the integration of industry internet and digital ecosystems[7] - The company has developed into one of China's leading automotive vertical media advertising platforms since its establishment in 2015[7] - The company acquired the "Online Car Market" in October 2015, enhancing its market position and brand recognition in the automotive advertising sector[7] - The company has implemented a dual-driven strategy of technology and service to enhance its operational capabilities and market reach[7] Financial Performance - For the six months ended June 30, 2024, the group's revenue was approximately RMB 67.0 million, a decrease of about 11.3% compared to RMB 75.5 million for the same period in 2023[9] - Online advertising service revenue for the same period was approximately RMB 56.0 million, down about 25.9% year-over-year[9] - Gross profit for the six months ended June 30, 2024, was approximately RMB 42.3 million, a decrease of about 28.8% from RMB 59.4 million in the prior year[9] - Net profit for the same period was approximately RMB 4.3 million, down about 84.6% from RMB 28.1 million in 2023[9] - For the six months ended June 30, 2024, the profit attributable to the owners of the group was approximately RMB 4.3 million, a decrease of about RMB 23.7 million (or approximately 84.6%) compared to RMB 28.0 million for the same period in 2023, primarily due to a decrease in revenue and an increase in cost of sales[28] - The adjusted net profit for the same period was RMB 4.3 million, reflecting a decrease of 84.6% from RMB 28.1 million in the previous year[31] Expenses and Investments - The group's sales and distribution expenses increased by approximately RMB 1.3 million (or about 4.8%) to RMB 29.4 million for the six months ended June 30, 2024, primarily due to increased marketing activities[22] - Research and development expenses increased by approximately RMB 0.3 million (or about 6.0%) to RMB 6.0 million, driven by system and technology upgrades[25] - The group intends to strengthen its technology R&D investment and improve IT systems, product development, and SaaS service capabilities[13] - The company invested RMB 30 million in the Rui Bo Fund, acquiring a 59.99% partnership interest as of June 30, 2024[43] Cash Flow and Assets - The net cash generated from operating activities for the six months ended June 30, 2024, was approximately RMB 11.6 million, down from RMB 25.8 million in the same period of 2023[35] - The net cash generated from investing activities was approximately RMB 13.4 million, compared to a net cash outflow of RMB 121.7 million for the same period in 2023[36] - The net cash used in financing activities was approximately RMB 1.2 million, an increase from RMB 0.6 million in the previous year[37] - As of June 30, 2024, the group's current assets were approximately RMB 550.5 million, while current liabilities were approximately RMB 83.0 million, resulting in a current ratio of 6.6 times[32] - The group had cash and cash equivalents of approximately RMB 394.9 million as of June 30, 2024, significantly increased from RMB 188.9 million in the previous year[33] Shareholder Information - As of June 30, 2024, the company has issued a total of 1,234,600,000 shares[61] - Cheshi Holdings owns 802,500,000 shares, representing 65.0% of the total shares[60] - The Core Trust Company Limited holds 80,000,000 shares, accounting for 6.5% of the total shares[60] - The employee incentive plan includes 2,170,000 restricted share units and 80,000,000 share awards granted to employees[63] - The restricted share unit plan and share award plan are effective for a total of 10 years, with approximately 5 years remaining[64] Governance and Management - The company’s board consists of independent non-executive directors with diverse backgrounds, ensuring balanced governance[49] - The chairman and CEO roles are held by the same individual, which the board believes ensures effective strategic guidance[49] - The company has established an effective employee performance evaluation and incentive plan linking compensation to overall performance[45] Future Outlook - The company expects revenue guidance for the second half of 2024 to be between RMB 600 million and RMB 650 million, indicating a potential growth of 20% to 30%[128] - The company plans to expand its market presence in Southeast Asia, targeting a 15% market share by the end of 2025[128] - A new advertising technology platform is set to launch in Q3 2024, expected to increase ad revenue by 30%[128] - The company aims to introduce three new products by the end of 2024, focusing on electric vehicle solutions[128] - The strategic partnership with major automotive manufacturers is projected to generate an additional RMB 200 million in revenue over the next year[128]

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 66,974 thousand, a decrease of 11.3% compared to RMB 75,518 thousand in the same period of 2023[1] - Gross profit for the same period was RMB 42,316 thousand, down 28.8% from RMB 59,420 thousand year-on-year[1] - Profit for the period was RMB 4,328 thousand, representing an 84.6% decline from RMB 28,054 thousand in the previous year[1] - Adjusted net profit for the six months was also RMB 4,328 thousand, reflecting the same 84.6% decrease compared to RMB 28,060 thousand in 2023[1] - Basic and diluted earnings per share for the parent company were both RMB 0.004, down from RMB 0.03 in the prior year[2] - Total comprehensive income for the period was RMB 4,328 thousand, unchanged from the previous year[3] - The group reported total revenue of RMB 66,974 thousand for the six months ended June 30, 2024, compared to RMB 55,945 thousand for the same period in 2023, representing a year-over-year increase of approximately 19.5%[12] - Online advertising services generated revenue of RMB 11,029 thousand, while integrated marketing services contributed RMB 55,945 thousand during the same period[12] - The group reported a net foreign exchange loss of RMB 1,343 thousand for the first half of 2024, compared to a loss of RMB 7,222 thousand in the same period of 2023, indicating an improvement in foreign exchange management[16] - For the six months ending June 30, 2024, the group's profit attributable to ordinary equity holders was RMB 4,525,000 (approximately a 83.8% decrease from RMB 27,923,000 for the same period in 2023)[23] - The group reported trade payables of RMB 14,301,000 as of June 30, 2024, an increase of 42.4% from RMB 10,005,000 as of December 31, 2023[25] - The group's profit attributable to owners for the six months ended June 30, 2024, was approximately RMB 4.3 million, a decrease of about RMB 23.7 million (or approximately 84.6%) compared to RMB 28.0 million for the same period in 2023, primarily due to a decrease in revenue and an increase in sales costs[46] - Adjusted net profit for the same period was RMB 4.3 million, reflecting a similar decline of 84.6% from RMB 28.1 million in 2023[48] Assets and Liabilities - Non-current assets totaled RMB 71,678 thousand as of June 30, 2024, an increase from RMB 54,986 thousand at the end of 2023[4] - Current assets amounted to RMB 550,518 thousand, slightly down from RMB 554,613 thousand at the end of 2023[4] - Total equity attributable to the parent company was RMB 535,855 thousand, compared to RMB 531,935 thousand at the end of 2023[5] - Non-current liabilities increased to RMB 3,292 thousand from RMB 2,117 thousand at the end of 2023[5] - Trade receivables as of June 30, 2024, totaled RMB 72,286,000, down 23.2% from RMB 94,172,000 as of December 31, 2023[24] - As of June 30, 2024, the group's current assets were approximately RMB 550.5 million, while current liabilities were approximately RMB 83.0 million, resulting in a current ratio of 6.6 times, down from 7.3 times as of December 31, 2023[49] - The group had no bank borrowings as of June 30, 2024, maintaining a capital debt ratio of 16.1%, up from 14.6% as of December 31, 2023[49] - As of June 30, 2024, the company reported no significant contingent liabilities, consistent with the previous year[57] Operational Highlights - The cost of services provided increased to RMB 24,658 thousand in the first half of 2024 from RMB 16,098 thousand in the first half of 2023, reflecting a rise of approximately 53.5%[16] - Employee benefits expenses decreased to RMB 23,934 thousand in the first half of 2024 from RMB 25,841 thousand in the first half of 2023, a decline of about 7.4%[16] - The company's sales cost increased by approximately 53.4% to RMB 24.7 million, up from RMB 16.1 million in the prior year, primarily due to increased marketing activities[39] - The gross margin decreased from approximately 78.7% to 63.2% for the six months ended June 30, 2024[40] - Other income and gains decreased by approximately 38.4% to RMB 8.2 million from RMB 13.3 million in the previous year, mainly due to currency exchange rate fluctuations[41] - Research and development expenses increased by approximately 6.0% to RMB 6.0 million from RMB 5.7 million in the prior year, driven by system and technology upgrades[44] - The company has 126 full-time employees as of June 30, 2024, an increase from 114 employees a year earlier, with employee benefits and expenses amounting to approximately RMB 23.9 million[59] Strategic Initiatives - The company plans to strengthen its market position in the automotive vertical media advertising sector and expand its geographic coverage in lower-tier cities[34] - The company is actively pursuing overseas expansion of its automotive business, starting in Thailand and extending to other Southeast Asian countries[37] - The company has initiated a new marketing strategy aimed at increasing brand awareness, with a budget allocation of HKD 20 million[71] - A strategic acquisition of a local tech firm is in progress, expected to close by Q4 2024, enhancing technological capabilities[70] - The board has approved a share buyback program worth HKD 100 million to enhance shareholder value[70] Market Trends - The Chinese automotive industry saw a production and sales increase of 5.4% and 6.3%, respectively, for passenger vehicles in the six months ending June 30, 2024[29] - New energy vehicle production and sales in China reached 4.9 million units, representing a year-on-year growth of 30.1% and 32%, respectively, accounting for 35.2% of total new car sales[29] - User engagement metrics showed a 30% increase in active users, totaling 1.2 million by June 30, 2024[71] - The company anticipates a revenue growth forecast of 20% for the second half of 2024, projecting total revenue of HKD 600 million[71] - New product launches in the AI sector are expected to contribute an additional HKD 100 million in revenue by the end of 2024[70] - The company plans to enhance its online advertising services, aiming for a 25% growth in this segment[71] Compliance and Governance - The group has reassessed its liabilities and confirmed that the classification of current and non-current liabilities remains unchanged following the adoption of revised accounting standards[6] - The group has been approved as a high-tech enterprise in China, allowing it to pay a reduced corporate income tax rate of 15% from October 2023 to October 2026[21] - The audit committee, consisting of three independent non-executive directors, reviewed the interim financial statements for the six months ended June 30, 2024, and confirmed compliance with relevant accounting standards[67] - The board has not recommended any interim dividend for the six months ending June 30, 2024[22] - The company has not declared any interim dividend for the six months ended June 30, 2024, similar to the previous year[62]

Financial Performance - For the fiscal year ended December 31, 2023, the company's revenue was approximately RMB 155.4 million, a decrease of about 8.6% compared to RMB 170.0 million in the same period of 2022[15]. - The gross profit for the fiscal year ended December 31, 2023, was approximately RMB 121.8 million, down about 5.7% from RMB 129.2 million in 2022[15]. - The net profit for the fiscal year ended December 31, 2023, was approximately RMB 41.4 million, an increase of about 175.5% compared to RMB 15.2 million in 2022, primarily due to reduced operating expenses and increased other income[15]. - The online advertising service revenue for the fiscal year ended December 31, 2023, was approximately RMB 155.4 million, a decrease of about 4.8% compared to the previous year[15]. - The group's total revenue for the reporting period was approximately RMB 155.4 million, a decrease of about RMB 14.6 million or approximately 8.6% compared to RMB 170.0 million for the year ended December 31, 2022, primarily due to a decline in online advertising revenue[30]. - The gross profit decreased from approximately RMB 129.2 million for the year ended December 31, 2022, to approximately RMB 121.8 million, a reduction of about RMB 7.4 million or approximately 5.7%, while the gross margin increased from approximately 76.0% to approximately 78.4%[33]. - The profit for the year was approximately RMB 41.4 million, an increase of about RMB 26.4 million (or 175.5%) compared to the previous year[44]. - Adjusted net profit for the year was approximately RMB 41.4 million, reflecting a year-on-year increase of 173.2%[48]. Assets and Liabilities - The total assets as of December 31, 2023, were RMB 609.6 million, an increase from RMB 572.4 million in 2022[8]. - The total liabilities as of December 31, 2023, were RMB 77.7 million, a decrease from RMB 81.8 million in 2022[8]. - The total equity as of December 31, 2023, was RMB 531.9 million, up from RMB 490.6 million in 2022[8]. - Current assets as of December 31, 2023, were approximately RMB 554.6 million, an increase of about RMB 29.6 million (or 5.6%) from the previous year[49]. - Current liabilities as of December 31, 2023, were approximately RMB 75.5 million, a decrease of about RMB 2.6 million (or 3.3%) from the previous year[49]. - The cash and cash equivalents as of December 31, 2023, were approximately RMB 369.9 million, primarily from net cash flows from operating activities[49]. - The capital adequacy ratio as of December 31, 2023, was 14.6%, down from 16.7% in the previous year[49]. - The available distributable reserves as of December 31, 2023, amounted to approximately RMB 375 million, an increase from RMB 367 million in 2022[115]. Market Position and Strategy - The company continues to enhance its market position in the automotive advertising industry by optimizing its media content matrix and investing in short video content creation[16]. - The group plans to strengthen its market position in the automotive vertical media advertising industry by enhancing the quality and quantity of PGC content and expanding its user base in lower-tier cities[22]. - The group aims to enhance its IT system and SaaS service capabilities by optimizing its Picker engine and installing new computer servers[23]. - The group is actively seeking strategic alliances, investments, and acquisition opportunities to complement its existing services and strategies, focusing on targets with significant user traffic and robust financial health[24]. - The group is planning overseas expansion of its automotive business, starting in Thailand and extending to other Southeast Asian countries, leveraging its brand influence on social media platforms[26]. - The group has entered into a collaboration with JD.com to explore new automotive retail business models, aiming to create an integrated online and offline car purchasing experience[21]. Employee and Compensation - The group employed 111 full-time employees as of December 31, 2023, with employee benefits and expenses amounting to approximately RMB 34.3 million[64]. - Employee compensation is linked to overall performance and contributions to business operations, with a performance-based compensation reward system established[65]. - The company has implemented a restricted share unit plan post-IPO to incentivize employees and align their performance with the group's overall performance[65]. - The company has maintained a competitive compensation structure to attract and motivate employees, linking remuneration to overall performance and contributions to business outcomes[111]. - The company has established effective employee performance evaluation and incentive plans to ensure alignment with business goals[111]. Investments and Acquisitions - The group made a significant investment of RMB 30 million in the Rui Bo Fund, acquiring a 59.99% limited partnership interest[58]. - The company aims to invest in target companies that can supplement its PGC and have strong user traffic and financial stability[106]. - The company has utilized all of the net proceeds from the listing, with no remaining funds as of December 31, 2023[107]. Compliance and Governance - The board report indicates compliance with relevant laws and regulations in all significant aspects affecting the group[100]. - The independent non-executive directors have reviewed the contractual arrangements and deemed them fair and reasonable, aligning with the overall interests of the company and its shareholders[196]. - The company has confirmed compliance with disclosure requirements regarding related party transactions under the Listing Rules[183]. - The company has not made any charitable or other donations for the year ending December 31, 2023, consistent with the previous year[198]. - There have been no significant legal proceedings or arbitrations involving the company as of December 31, 2023[200]. Shareholder Information - As of December 31, 2023, the company had 1,234,600,000 shares outstanding, with Mr. Xu holding 802,500,000 shares, representing 65.00% ownership[136]. - The company has established a retirement benefits plan for its employees, with contributions based on a certain percentage of their salaries[134]. - The company has no significant transactions or contracts involving directors that could impact the business, as of December 31, 2023[129]. - The company will suspend share transfer registration from May 17, 2024, to May 22, 2024, to determine the eligibility of shareholders for the annual general meeting[96].

Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 155,358,000, a decrease of 8.6% compared to RMB 170,037,000 in 2022[3] - Gross profit for the same period was RMB 121,784,000, down 5.7% from RMB 129,205,000 in the previous year[3] - Profit attributable to owners of the parent company increased significantly by 161.6% to RMB 42,884,000 from RMB 16,396,000 in 2022[3] - Adjusted net profit rose by 173.2% to RMB 41,413,000 compared to RMB 15,159,000 in the prior year[3] - The total comprehensive income for the year was RMB 41,326,000, compared to RMB 13,990,000 in 2022, marking an increase of 195.5%[6] - The group reported a pre-tax profit of RMB 58,334 thousand in 2023, a decrease from RMB 63,213 thousand in 2022, reflecting a decline of about 8%[28] - The company's net profit for the fiscal year ending December 31, 2023, was approximately RMB 41.4 million, an increase of about 175.5% compared to the same period in 2022, attributed to reduced operating expenses and increased other income[55] - The net profit for the year was approximately RMB 41.4 million, an increase of about RMB 26.4 million (or 175.5%) compared to RMB 15.0 million for the year ended December 31, 2022, driven by reduced period expenses and interest costs[76] - Adjusted net profit was approximately RMB 41.4 million, representing a year-on-year increase of 173.2% from RMB 15.2 million[79] Revenue Sources - For the fiscal year ending December 31, 2023, the total revenue from customer contracts amounted to RMB 155,358,000, exclusively from online advertising services[20] - Online advertising service revenue for the fiscal year ending December 31, 2023, was approximately RMB 155.4 million, down about 4.8% from RMB 163.1 million in 2022[65] - Total revenue for the year ended December 31, 2022, was RMB 170,037 thousand, with online advertising services contributing RMB 163,130 thousand and mobility services contributing RMB 6,907 thousand[21] - Customer B contributed RMB 18,246,000 to the total revenue, representing over 10% of the group's income for the fiscal year[19] Expenses and Cost Management - Research and development expenses decreased to RMB 11,044,000 from RMB 17,922,000, reflecting a reduction of 38.3%[5] - Sales and distribution expenses were approximately RMB 59.4 million, a decrease of about RMB 10.8 million (or 15.4%) compared to RMB 70.2 million for the year ended December 31, 2022, mainly due to reduced online advertising and marketing expenses[69] - Administrative expenses decreased by approximately RMB 5.1 million (or 16.3%) to about RMB 25.9 million, attributed to organizational restructuring and optimization[70] - Research and development expenses decreased by approximately RMB 6.9 million (or 38.4%) to about RMB 11.0 million, mainly due to improved R&D efficiency[71] Assets and Liabilities - Cash and cash equivalents increased to RMB 369,880,000 from RMB 278,216,000, representing a growth of 32.9%[8] - Total assets less current liabilities amounted to RMB 534,052,000, up from RMB 494,287,000 in 2022, indicating a growth of 8.1%[9] - Current assets increased by approximately RMB 29.6 million (or 5.6%) to about RMB 554.6 million as of December 31, 2023, mainly due to increased tax refunds and interest income[80] - Current liabilities decreased by approximately RMB 2.6 million (or 3.3%) to about RMB 75.5 million, with a current ratio of 7.3 compared to 6.7 as of December 31, 2022[81] - Trade receivables increased to RMB 106,417,000 in 2023 from RMB 102,744,000 in 2022, with a provision for impairment of RMB 12,245,000[43] - The aging analysis of trade receivables shows that amounts overdue for more than one year rose to RMB 4,417,000 in 2023 from RMB 912,000 in 2022[44] - The expected credit loss rate for trade receivables was 11.51% in 2023, compared to 16.59% in 2022, indicating improved credit risk management[45] Investments and Future Plans - The company plans to enhance its PGC quality and quantity, strengthen partnerships with KOLs, and expand coverage in lower-tier cities to improve content service quality and industry influence in 2024[61] - The company aims to optimize its Picker engine and enhance IT infrastructure through new server installations to improve SaaS services and develop effective marketing tools[62] - The company is actively seeking strategic alliances, investments, and acquisition opportunities to complement its existing services and strategies, focusing on targets with significant user traffic and robust financial health[63] - The company plans to expand its automotive business overseas, starting in Thailand and extending to other Southeast Asian countries, leveraging its brand influence and expertise in automotive information services[64] - Future investments will focus on companies that can enhance the group's PGC and have strong user traffic and financial stability[96] Market Overview - The automotive industry in China saw production and sales reach 30.2 million and 30.1 million units respectively in 2023, marking a year-on-year growth of 11.6% and 12%[52] - New energy vehicle production and sales surged to 9.6 million and 9.5 million units in 2023, reflecting year-on-year growth of 35.8% and 37.9%[52] - The penetration rate of new energy vehicles in China reached 31.6% in 2023, up 5.9 percentage points from the previous year[52] - China's automotive advertising market is projected to grow from RMB 568 billion in 2020 to RMB 1,164 billion by 2025, with a compound annual growth rate of 15.4%[53] Governance and Compliance - The company has adopted the Corporate Governance Code as its own governance code and has complied with most of its best practices during the reporting period[102] - The company has a balanced board composition with independent non-executive directors representing more than one-third of the board members[104] - The company has adopted the Standard Code for Securities Transactions by Directors and confirmed compliance by all directors during the reporting period[105] - The audit committee, consisting of three independent non-executive directors, has reviewed the applicable accounting principles and the consolidated financial statements for the year ended December 31, 2023[108] - The company's auditor, Ernst & Young, confirmed that the figures in the preliminary announcement are consistent with the consolidated financial statements prepared for the year ended December 31, 2023[109] Shareholder Information - The board expresses gratitude to management and employees for their hard work over the past year and appreciates the continued support from shareholders and stakeholders[111] - The annual general meeting of shareholders is scheduled for May 22, 2024[100] - The company will suspend share transfer registration from May 17 to May 22, 2024, to determine eligible shareholders for the annual general meeting[101] - No dividends were proposed for the year ended December 31, 2023[99]