Group 1 - The core point of the article is that AsiaInfo Technology (Nanjing) Co., Ltd. has obtained a patent for a signal transmission method and related devices, indicating its ongoing innovation efforts in the technology sector [1] - AsiaInfo Technology (Nanjing) Co., Ltd. was established in 2004 and is primarily engaged in software and information technology services, with a registered capital of 100 million RMB [1] - The company has made investments in 8 enterprises and participated in 4,028 bidding projects, showcasing its active involvement in the market [1] Group 2 - The company holds 94 patents and has 4 trademark registrations, reflecting its commitment to intellectual property development [1] - AsiaInfo Technology (Nanjing) Co., Ltd. has obtained 7 administrative licenses, indicating compliance with regulatory requirements [1]

Core Viewpoint - The article highlights the top 10 most popular research reports from iResearch, a subsidiary of AsiaInfo Technologies, which are available for free download during a limited time [2] Group 1 - AsiaInfo Technologies has made its top 10 research reports from iResearch available for free download, indicating a strategy to enhance accessibility and engagement with their research [2] - The reports cover various sectors and trends, showcasing the company's expertise in market analysis and research [2] - This initiative may attract new clients and strengthen existing relationships by providing valuable insights without cost barriers [2]

[Report Overview](index=1&type=section&id=Report%20Overview) [Definitions and Technical Terms](index=3&type=section&id=Definitions%20and%20Technical%20Terms) This section defines key terms and technical vocabulary used in the report, ensuring clarity for the reader - The report defines key entities, including "AsiaInfo Security" (listed on the Shanghai Stock Exchange, with Dr Tian ultimately controlling approximately 51.42% of its equity) and "the Company" (AsiaInfo Technologies Holdings Limited, listed on the Hong Kong Stock Exchange, stock code: 1675)[7](index=7&type=chunk) - Technical terms cover core business areas such as AI, 5G, BSS (Business Support System), OSS (Operations Support System), DevOps, GPU, LLM (Large Language Model), and O-RAN[13](index=13&type=chunk) - The reporting period is defined as the six months ended June 30, 2025, with primary currencies being RMB and HKD[11](index=11&type=chunk) [Financial Highlights](index=8&type=section&id=Financial%20Highlights) In H1 2025, revenue decreased by 13.2% YoY to RMB 2.598 billion, while gross profit grew by 6.1% to RMB 783 million, and net loss widened to RMB 202 million Key Financial Data for H1 2025 | Financial Metric | 2025 (RMB hundred million) | 2024 (RMB hundred million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 25.98 | 29.94 | (13.2%) | | Cost of Revenue | (18.15) | (22.56) | (19.6%) | | Gross Profit | 7.83 | 7.38 | 6.1% | | Gross Profit Margin | 30.1% | 24.7% | 5.4 ppt | | Net Loss | (2.02) | (0.70) | (188.5%) | | Net Cash Used in Operating Activities | (5.94) | (9.19) | 35.3% | - Despite declines in revenue and net profit, **gross profit and gross profit margin both increased**, indicating effective cost control measures[15](index=15&type=chunk)[16](index=16&type=chunk) [Chairman's Statement](index=9&type=section&id=Chairman's%20Statement) [Overall Performance](index=10&type=section&id=Overall%20Performance) In H1 2025, the company's revenue and profit declined due to telecom operators' cost-cutting, but gross profit and margin grew through structural optimization and AI-driven efficiency gains - Revenue **decreased by 13.2% YoY to RMB 2.598 billion**, primarily due to declines in the ICT Support Business (down 14.7%) and the Digital Intelligence Operation Business (down 8.8%)[21](index=21&type=chunk) Revenue and Growth by Business Segment for H1 2025 | Business Segment | H1 2025 Revenue (RMB hundred million) | YoY Change | | :--- | :--- | :--- | | ICT Support Business | 21.18 | (14.7%) | | Digital Intelligence Operation Business | 4.08 | (8.8%) | | 5G Private Network and Application Business | 0.47 | (26.3%) | | AI Large Model Application and Delivery Business | 0.26 | 76x | - The **AI Large Model Application and Delivery Business revenue grew 76-fold YoY**, with order amounts increasing 78-fold, demonstrating explosive growth potential[21](index=21&type=chunk) - **Gross profit increased by 6.1% YoY to RMB 783 million**, and the gross profit margin rose by 5.4 percentage points to 30.1%, mainly due to personnel structure optimization and cost control[22](index=22&type=chunk) - The Board of Directors has proposed a **final dividend guidance for 2025 at 40% of the annual net profit** attributable to shareholders[22](index=22&type=chunk) [Business Development](index=10&type=section&id=Business%20Development) The company actively addresses industry challenges by focusing on three growth engines: AI Large Model Application and Delivery, 5G Private Network and Application, and Digital Intelligence Operation - The company is focused on building three growth engines: AI Large Model Application and Delivery, 5G Private Network and Application, and Digital Intelligence Operation, while deeply integrating "AI+" technology into its ICT Support Business[18](index=18&type=chunk) [AI Large Model Application and Delivery Business](index=10&type=section&id=AI%20Large%20Model%20Application%20and%20Delivery%20Business) This business achieved explosive growth, with H1 revenue increasing 76-fold to RMB 26 million and order value growing 78-fold to RMB 70 million AI Large Model Application and Delivery Business Growth | Metric | H1 2025 (RMB) | YoY Growth | | :--- | :--- | :--- | | Revenue | 26 million | 76x | | Order Amount | 70 million | 78x | - The company enhances project delivery quality and speed through a toolset including intelligent data cleaning, large model hallucination suppression, and automated prompt engineering[25](index=25&type=chunk) - Collaborations with partners like Alibaba Cloud, Baidu AI Cloud, NVIDIA, and AsiaInfo Security help build end-to-end industry-specific large model solutions[26](index=26&type=chunk) [5G Private Network and Application Business](index=12&type=section&id=5G%20Private%20Network%20and%20Application%20Business) This business continues to expand in the energy sector, with H1 order value growing 51.7% YoY to RMB 82 million, though revenue declined due to delayed order recognition 5G Private Network and Application Business Growth | Metric | H1 2025 (RMB) | YoY Change | | :--- | :--- | :--- | | Revenue | 47 million | (26.3%) | | Order Amount | 82 million | 51.7% | - In the nuclear power sector, the company maintains a **leading market share**, covering 7 nuclear power bases and 29 units nationwide, and has successfully secured China Huaneng Group as a client[30](index=30&type=chunk) - In the mining sector, a joint venture was established with Zhengzhou Coal Mining Machinery Group, and an intrinsically safe 5G private network base station received network access permission[31](index=31&type=chunk) [Digital Intelligence Operation Business](index=13&type=section&id=Digital%20Intelligence%20Operation%20Business) H1 revenue for this business decreased by 8.8% YoY to RMB 408 million, but orders from non-telecom industries grew, and the business model continues to optimize - While Digital Intelligence Operation Business revenue decreased by 8.8% YoY to RMB 408 million, **orders from non-telecom industries grew by 18.2%**[21](index=21&type=chunk)[34](index=34&type=chunk) - **Order value from the financial sector surged by 48.3% YoY**, with successful implementations of landmark projects for UnionPay and Postal Savings Bank branches[33](index=33&type=chunk) - The proportion of revenue from **result-based and revenue-sharing models reached 33.4%**, an increase of 6.7 percentage points YoY, indicating continuous business structure optimization[34](index=34&type=chunk) [ICT Support Business](index=14&type=section&id=ICT%20Support%20Business) H1 revenue for this business declined by 14.7% YoY to RMB 2.118 billion due to reduced operator investment, but the company maintains a leading market share and is actively transforming - ICT Support Business revenue **decreased by 14.7% YoY to RMB 2.118 billion** but maintained a leading market share[21](index=21&type=chunk)[38](index=38&type=chunk) - In H1, the company accelerated the application of AI in BSS and OSS, signing 48 new projects, deploying AI tool platforms in over 10 provinces, and launching digital human projects in more than 10 locations[37](index=37&type=chunk) - In the government and enterprise market, the company collaborated with telecom operators to explore areas such as data governance, trusted data spaces, public services, and the low-altitude economy[37](index=37&type=chunk) [Strengthening Product and Technology Leadership](index=14&type=section&id=Strengthening%20Product%20and%20Technology%20Leadership) The company focuses on its "Cloud & Network," "Digital Intelligence," and "IT" product systems, driving an AI Native evolution to enhance its technological leadership - The company focuses on its "Cloud & Network," "Digital Intelligence," and "IT" product systems, comprehensively driving product innovation towards an AI Native evolution[39](index=39&type=chunk) [Cloud and Network Domain](index=15&type=section&id=Cloud%20and%20Network%20Domain) The company enhanced its influence by joining the AI-RAN Alliance, winning GTI and TM Forum awards, and advancing its AI Native product reconstruction for autonomous networks - The company joined the AI-RAN Alliance, won GTI Awards, and received a TM Forum award for a joint project with a telecom operator[40](index=40&type=chunk) - The 5G network intelligence product suite was **selected for Gartner's relevant matrix for the fourth consecutive year** and is undergoing an AI Native reconstruction to create intelligent agents and CoPilot toolsets[40](index=40&type=chunk) - The company plans to develop Agentic wireless and core networks to build highly autonomous 5G/6G private networks with intent awareness[40](index=40&type=chunk) [Digital Intelligence Domain](index=15&type=section&id=Digital%20Intelligence%20Domain) The company expanded its product portfolio, building an industry-specific large model product system that has been deployed in over 240 commercial cases - The company built an industry-specific large model product system of "2 large model platforms, 5 industry-specific large models, and N industry intelligent agent tools," with **over 240 cumulative case implementations**[41](index=41&type=chunk) - The data infrastructure platform received the "DataOps" Innovative Product Case Award from CAICT, and its trusted data space product passed evaluation and certification[41](index=41&type=chunk) - The company is developing multi-agent collaborative capabilities based on Agentic AI technology to promote deep integration between communication networks and intelligent agents[41](index=41&type=chunk) [IT Domain](index=16&type=section&id=IT%20Domain) The company is building an AI-native IT product system, providing capabilities like intelligent computing infrastructure management, inference acceleration, and GPU virtualization - The company is building an AI-native universal IT product system, offering capabilities such as intelligent computing infrastructure management, inference acceleration, and elastic GPU virtualization scheduling[43](index=43&type=chunk) - The **SimOps (Simulation Twin) concept proposed by the company was cited by Gartner**, and a digital twin case won the "Excellent Case" award at the 2025 Digital China Innovation Contest[43](index=43&type=chunk) - The company plans to develop digital space infrastructure based on technologies like NeRF, 3DGS, spatial computing, and spatial intelligence to empower the low-altitude economy[43](index=43&type=chunk) [Standards and Intellectual Property](index=16&type=section&id=Standards%20and%20Intellectual%20Property) The company actively participates in international and national standards organizations, adding 26 new standards and numerous software copyrights and patents in H1 2025 - As of June 2025, the company has participated in the formulation of **356 international/domestic standards**, with 26 new additions in H1 covering core areas like digital intelligence large models, 5G private networks, and O-RAN[44](index=44&type=chunk) - In H1, the company added **32 software copyrights, 45 new patents, and 29 new patent applications**, continuously strengthening its intellectual property portfolio[44](index=44&type=chunk) [Future Outlook](index=17&type=section&id=Future%20Outlook) The company anticipates a significantly better performance in the second half of the year and will focus on its three growth engines to ensure steady full-year growth - Performance in H2 is expected to be significantly better than H1, with the company aiming for **steady full-year results and high-speed growth** in the AI Large Model and 5G Private Network businesses[46](index=46&type=chunk) - The company will continue to solidify its foundation in the telecommunications industry to promote a steady recovery of its ICT Support Business[46](index=46&type=chunk) - The Digital Intelligence Operation Business will integrate AI and intelligent agent technologies to advance innovative result-based payment models and optimize its business structure[46](index=46&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) [Overall Operating Performance](index=18&type=section&id=Overall%20Operating%20Performance) In H1 2025, despite revenue pressure from the telecom industry, the company achieved significant growth in its AI business and improved gross margin and operating cash flow through cost management - H1 revenue **decreased by 13.2% YoY to RMB 2.598 billion**, while gross profit increased by 6.1% to RMB 783 million, and the gross profit margin improved by 5.4 percentage points to 30.1%[50](index=50&type=chunk) - The **net loss was approximately RMB 202 million**; excluding a one-off severance compensation, the adjusted net loss was approximately RMB 48 million, an improvement from the RMB 70 million net loss in the same period last year[50](index=50&type=chunk) - **Net cash used in operating activities significantly improved by 35.3% YoY** to RMB 594 million[51](index=51&type=chunk) [Revenue Analysis](index=18&type=section&id=Revenue%20Analysis) Total revenue in H1 2025 decreased by 13.2% YoY to RMB 2.598 billion, primarily due to a slowdown in the telecommunications industry and operator cost pressures Revenue by Business Type for H1 2025 | Business Segment | 2025 (RMB'000) | Proportion (%) | 2024 (RMB'000) | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | ICT Support Business | 2,117,736 | 81.5 | 2,483,649 | 83.0 | | Digital Intelligence Operation Business | 407,647 | 15.7 | 447,001 | 14.9 | | 5G Private Network and Application Business | 46,652 | 1.8 | 63,277 | 2.1 | | AI Large Model Application and Delivery Business | 25,840 | 1.0 | 335 | 0.0 | | Total Revenue | 2,597,875 | 100.0 | 2,994,262 | 100.0 | - The **AI Large Model Application and Delivery Business experienced explosive YoY growth**, with revenue increasing from RMB 335 thousand to RMB 25,840 thousand, raising its revenue share to 1.0%[52](index=52&type=chunk)[54](index=54&type=chunk) - Revenue from the ICT Support Business, Digital Intelligence Operation Business, and 5G Private Network and Application Business decreased by 14.7%, 8.8%, and 26.3% respectively, mainly due to operator cost controls and project timelines[52](index=52&type=chunk)[54](index=54&type=chunk) [Cost and Profit Analysis](index=19&type=section&id=Cost%20and%20Profit%20Analysis) In H1 2025, effective cost control led to a 19.6% decrease in cost of revenue and a significant improvement in gross margin, though administrative expenses rose due to one-off severance costs - **Cost of revenue decreased by 19.6% YoY**, primarily due to personnel structure adjustments and cost control measures[55](index=55&type=chunk) - **Gross profit increased by 6.1%**, and the gross profit margin improved by 5.4 percentage points to 30.1%[56](index=56&type=chunk) - **Administrative expenses surged by 62.4% YoY**, mainly due to one-off severance compensation from personnel structure adjustments[58](index=58&type=chunk) - **R&D expenses decreased by 4.9% YoY** as the company maintained moderate investment to support its strategic transformation[59](index=59&type=chunk) - The **net loss was approximately RMB 202 million**; excluding one-off severance compensation, the adjusted net loss was approximately RMB 48 million, an improvement from the RMB 70 million net loss in the prior year period[61](index=61&type=chunk) [Cost of Revenue](index=19&type=section&id=Cost%20of%20Revenue) In H1 2025, the company's cost of revenue was approximately RMB 1.815 billion, a YoY decrease of 19.6%, mainly due to personnel structure adjustments and enhanced cost control measures - **Cost of revenue decreased by 19.6% YoY to RMB 1.815 billion**, primarily due to personnel structure adjustments and cost control[55](index=55&type=chunk) [Gross Profit and Gross Profit Margin](index=19&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) In H1 2025, gross profit was approximately RMB 783 million, a YoY increase of 6.1%, while the gross profit margin was 30.1%, up 5.4 percentage points YoY Gross Profit and Gross Profit Margin Change | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Profit | RMB 783 million | RMB 738 million | 6.1% | | Gross Profit Margin | 30.1% | 24.7% | 5.4 ppt | [Selling and Marketing Expenses](index=19&type=section&id=Selling%20and%20Marketing%20Expenses) In H1 2025, selling and marketing expenses were approximately RMB 223 million, a slight YoY increase of 1.1%, reflecting the company's ongoing marketing activities to support business expansion - Selling and marketing expenses **increased slightly by 1.1% YoY to RMB 223 million** to support business development[57](index=57&type=chunk) [Administrative Expenses](index=19&type=section&id=Administrative%20Expenses) In H1 2025, administrative expenses were approximately RMB 297 million, a significant YoY increase of 62.4%, mainly due to one-off severance compensation from personnel adjustments - Administrative expenses **surged by 62.4% YoY to RMB 297 million**, primarily driven by one-off severance compensation[58](index=58&type=chunk) - Excluding the one-off severance compensation, administrative expenses were approximately RMB 143 million[58](index=58&type=chunk) [Research and Development Expenses](index=19&type=section&id=Research%20and%20Development%20Expenses) In H1 2025, R&D expenses were approximately RMB 415 million, a YoY decrease of 4.9%, as the company maintained moderate investment to support its strategic transformation and product evolution - R&D expenses **decreased by 4.9% YoY to RMB 415 million** to support strategic transformation and product evolution[59](index=59&type=chunk) [Income Tax Credit](index=20&type=section&id=Income%20Tax%20Credit) In H1 2025, the company received an income tax credit of approximately RMB 34 million, an increase from the same period last year, mainly due to temporary losses from short-term business pressure - The income tax credit was approximately **RMB 34 million**, an increase from RMB 21 million in the prior year period, reflecting short-term business pressure[60](index=60&type=chunk) [Net Loss](index=20&type=section&id=Net%20Loss) For H1 2025, the Group's net loss was approximately RMB 202 million; after excluding the impact of one-off severance compensation, the net loss was approximately RMB 48 million - The Group's **net loss was approximately RMB 202 million**[61](index=61&type=chunk) - **Excluding one-off severance compensation**, the net loss was approximately RMB 48 million, an improvement compared to the RMB 70 million net loss in the same period last year[61](index=61&type=chunk) [Financial Position](index=20&type=section&id=Financial%20Position) As of June 30, 2025, the company's financial position remained healthy, though total assets, liabilities, and net assets decreased, primarily due to dividend payments and normal business fluctuations - The company's overall financial position is healthy, but **total assets, total liabilities, and net assets all decreased**, mainly due to dividend payments and normal business changes[63](index=63&type=chunk) [Total Assets and Total Liabilities](index=20&type=section&id=Total%20Assets%20and%20Total%20Liabilities) As of June 30, 2025, total assets were approximately RMB 9.311 billion, total liabilities were RMB 3.153 billion, and net assets were RMB 6.158 billion Balance Sheet Overview | Metric | June 30, 2025 (RMB hundred million) | Dec 31, 2024 (RMB hundred million) | YoY Change | | :--- | :--- | :--- | :--- | | Total Assets | 93.11 | 105.00 | (11.3%) | | Total Liabilities | 31.53 | 38.59 | (18.3%) | | Net Assets | 61.58 | 66.41 | (7.3%) | [Net Current Assets](index=20&type=section&id=Net%20Current%20Assets) As of June 30, 2025, net current assets were approximately RMB 3.597 billion, a YoY decrease of 13.9%, primarily due to dividend distribution - **Net current assets decreased by 13.9% YoY to RMB 3.597 billion**, mainly due to dividend distribution[64](index=64&type=chunk) [Goodwill](index=20&type=section&id=Goodwill) As of June 30, 2025, total goodwill was approximately RMB 1.932 billion, consistent with the end of 2024, with no signs of impairment during the reporting period - Total goodwill was approximately **RMB 1.932 billion**, with no signs of impairment or impairment risk during the reporting period[65](index=65&type=chunk) [Cash and Cash Equivalents](index=20&type=section&id=Cash%20and%20Cash%20Equivalents) As of June 30, 2025, cash and cash equivalents were approximately RMB 613 million, a significant YoY decrease of 62.1%, mainly due to dividend payments and daily operating expenses - **Cash and cash equivalents decreased significantly by 62.1% YoY to RMB 613 million**, primarily due to dividend payments and daily operating expenses[66](index=66&type=chunk) [Trade and Bills Receivables](index=20&type=section&id=Trade%20and%20Bills%20Receivables) As of June 30, 2025, trade and bills receivables were approximately RMB 1.785 billion, a YoY decrease of 13.6%, mainly due to the maturity of bills receivable - **Trade and bills receivables decreased by 13.6% YoY to RMB 1.785 billion**, mainly due to the maturity of bills receivable[67](index=67&type=chunk) [Contract Assets and Contract Liabilities](index=21&type=section&id=Contract%20Assets%20and%20Contract%20Liabilities) As of June 30, 2025, contract assets were approximately RMB 2.957 billion, a slight YoY increase of 0.9%, while contract liabilities were approximately RMB 250 million, a YoY decrease of 15.2% - **Contract assets increased slightly by 0.9% YoY to RMB 2.957 billion**[68](index=68&type=chunk) - **Contract liabilities decreased by 15.2% YoY to RMB 250 million**[68](index=68&type=chunk) [Financial Assets at Fair Value through Profit or Loss — Current](index=21&type=section&id=Financial%20Assets%20at%20Fair%20Value%20through%20Profit%20or%20Loss%20%E2%80%94%20Current) As of June 30, 2025, these assets were approximately RMB 158 million, a YoY decrease of 11.8%, mainly due to the redemption of wealth management products - Financial assets at fair value through profit or loss—current **decreased by 11.8% YoY to RMB 158 million**, mainly due to the redemption of wealth management products[69](index=69&type=chunk) [Inventories](index=21&type=section&id=Inventories) As of June 30, 2025, inventories were approximately RMB 412 million, a significant YoY increase of 49.9%, mainly due to increased costs to fulfill contracts as business developed - **Inventories increased significantly by 49.9% YoY to RMB 412 million**, primarily due to higher costs to fulfill contracts[70](index=70&type=chunk) [Trade and Bills Payables](index=21&type=section&id=Trade%20and%20Bills%20Payables) As of June 30, 2025, trade and bills payables were approximately RMB 958 million, a YoY decrease of 13.2%, which is a normal fluctuation in line with business development - **Trade and bills payables decreased by 13.2% YoY to RMB 958 million**, a normal fluctuation related to business development[71](index=71&type=chunk) [Deposits Received, Accruals and Other Payables](index=21&type=section&id=Deposits%20Received,%20Accruals%20and%20Other%20Payables) As of June 30, 2025, these liabilities were approximately RMB 1.238 billion, a YoY decrease of 24.5%, which is a normal fluctuation in line with business development - Deposits received, accruals and other payables **decreased by 24.5% YoY to RMB 1.238 billion**, a normal fluctuation related to business development[72](index=72&type=chunk) [Borrowings](index=21&type=section&id=Borrowings) As of June 30, 2025, the Group had no bank borrowings, and its corresponding gearing ratio was zero - The Group had **no bank borrowings**, and its gearing ratio was zero[73](index=73&type=chunk) [Contingent Liabilities](index=21&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - The Group had **no significant contingent liabilities**[75](index=75&type=chunk) [Cash Flow](index=21&type=section&id=Cash%20Flow) In H1 2025, net cash used in operating activities improved significantly by 35.3% to RMB 594 million, driven by better sales collection and cost control Cash Flow Overview for H1 2025 | Cash Flow Type | H1 2025 (RMB hundred million) | H1 2024 (RMB hundred million) | YoY Change | | :--- | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (5.94) | (9.19) | 35.3% | | Net Cash Generated from Investing Activities | 0.08 | 3.28 | (97.6%) | | Net Cash Used in Financing Activities | (4.17) | (6.96) | 40.0% | - The improvement in operating cash flow was mainly due to **enhanced sales collection and effective cost control**[76](index=76&type=chunk) - The significant decrease in investing cash flow was primarily due to differences in the scale of redeemed wealth management products[78](index=78&type=chunk) [Capital and Working Capital Management](index=22&type=section&id=Capital%20and%20Working%20Capital%20Management) The Group's capital and liquidity are centrally managed by the treasury department, which formulates and oversees the implementation of capital management policies and annual plans - Capital and liquidity are centrally managed by the Group's treasury department, which is responsible for policy formulation, planning, and supervision[79](index=79&type=chunk) - The company adopts a meticulous capital management policy covering account management, budgeting, payments, and credit financing to ensure capital security and efficiency[79](index=79&type=chunk) [Foreign Exchange Risk](index=22&type=section&id=Foreign%20Exchange%20Risk) The Group's foreign exchange risk primarily arises from fluctuations in the exchange rates of HKD against RMB and USD against RMB - The main foreign exchange risks stem from fluctuations in the **HKD/RMB and USD/RMB exchange rates**[80](index=80&type=chunk) - As of June 30, 2025, the Group had no foreign currency hedging operations, but management continuously monitors foreign currency risk and will consider hedging if necessary[80](index=80&type=chunk) [Significant Investment and Acquisition/Disposal Plans](index=22&type=section&id=Significant%20Investment%20and%20Acquisition/Disposal%20Plans) During the reporting period, the Group had no significant investments, acquisitions, or disposals, and as of June 30, 2025, there were no definite plans for such activities - There were **no significant investments, M&A activities, or disposals** during the reporting period[81](index=81&type=chunk) - As of June 30, 2025, there were no definite plans for significant capital asset acquisitions, major investments, or disposals[81](index=81&type=chunk) [Other Information](index=23&type=section&id=Other%20Information) [Corporate Governance Practices](index=23&type=section&id=Corporate%20Governance%20Practices) The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value and accountability - The company is committed to maintaining high standards of corporate governance to safeguard shareholder interests and enhance corporate value[82](index=82&type=chunk) - During the reporting period, the company complied with all applicable provisions of the Corporate Governance Code and will continue its review and monitoring[82](index=82&type=chunk) [Model Code for Securities Transactions](index=23&type=section&id=Model%20Code%20for%20Securities%20Transactions) The company has adopted the Model Code as the code of conduct for directors' securities transactions, and all directors have confirmed their compliance during the reporting period - The company has adopted the Model Code as the code of conduct for directors' securities transactions[83](index=83&type=chunk) - All directors have confirmed their compliance with the required standards set out in the Model Code during the reporting period[83](index=83&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=23&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Listed%20Securities) During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the reporting period, **neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities**[84](index=84&type=chunk) [Audit Committee](index=23&type=section&id=Audit%20Committee) The Audit Committee has reviewed the Group's accounting principles and practices, as well as the unaudited interim results, and found the risk management and internal control systems to be effective - The Audit Committee has reviewed the accounting principles, practices, and interim results[85](index=85&type=chunk) - The committee considers the risk management and internal control systems to be effective and adequate[85](index=85&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=24&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures) As of June 30, 2025, several directors and the chief executive held interests in the company's shares, with Dr Tian Suning holding approximately 29.86% and Mr Gao Nianshu holding about 2.79% Overview of Directors' and Chief Executive's Shareholdings (as of June 30, 2025) | Name of Director/Chief Executive | Nature of Interest | Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Dr Tian Suning | Total | 279,854,851 | 29.86% | | Mr Gao Nianshu | Total | 26,140,913 | 2.79% | | Dr Zhang Ya-Qin | Beneficial Owner (L) | 112,000 | 0.01% | | Mr Ge Ming | Beneficial Owner (L) | 112,000 | 0.01% | | Ms Tao Ping | Beneficial Owner (L) | 112,000 | 0.01% | - Dr Tian Suning is deemed to have a **29.86% interest** through controlled corporations including Info Addition Limited, AsiaInfo Security, and PacificInfo Limited[87](index=87&type=chunk)[89](index=89&type=chunk) - Mr Gao Nianshu's interests include beneficial shares, unexercised options under the Pre-IPO Share Option Scheme, and share interests under the 2023 Share Award Scheme[87](index=87&type=chunk)[89](index=89&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares](index=26&type=section&id=Substantial%20Shareholders'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, AsiaInfo Security held an interest of approximately 29.86%, China Mobile Group held about 19.44%, and Ocean Voice Investment Holding Limited held about 6.42% Overview of Substantial Shareholders' Holdings (as of June 30, 2025) | Name of Shareholder | Nature of Interest | Number of Shares | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | | AsiaInfo Security | Beneficial Owner (L) | 279,854,851 | 29.86% | | China Mobile International Holdings Limited | Beneficial Owner (L) | 182,259,893 | 19.44% | | Ocean Voice Investment Holding Limited | Beneficial Owner (L) | 60,129,928 | 6.42% | - Through a voting rights proxy agreement, AsiaInfo Security holds the voting rights for a total of 279,854,851 shares held by Dr Tian and his controlled entities[91](index=91&type=chunk) - China Mobile International Holdings Limited is wholly owned by China Mobile Communications Group Co, Ltd, which is therefore deemed to be interested in its shares[92](index=92&type=chunk) [Directors' Rights to Acquire Shares or Debentures](index=28&type=section&id=Directors'%20Rights%20to%20Acquire%20Shares%20or%20Debentures) Apart from the disclosed share schemes, no arrangements existed during the reporting period for directors to benefit from acquiring shares or debentures of the company or any other body corporate - Apart from the disclosed share schemes, no arrangements existed for directors or their associates to benefit from acquiring shares or debentures during the reporting period[94](index=94&type=chunk) [Share Schemes](index=28&type=section&id=Share%20Schemes) The company operates Pre-IPO and 2019 Share Option Schemes, as well as 2020 and 2023 Share Award Schemes, to incentivize directors, management, and employees - The company has a Pre-IPO Share Option Scheme, a 2019 Share Option Scheme, a 2020 Share Award Scheme, and a 2023 Share Award Scheme to incentivize employees and management[95](index=95&type=chunk) [Share Option Schemes](index=28&type=section&id=Share%20Option%20Schemes) The company operates a Pre-IPO Share Option Scheme, which has expired, and a 2019 Share Option Scheme, with 53,192,432 and 63,326,657 options outstanding respectively as of June 30, 2025 - The Pre-IPO Share Option Scheme has expired, but **53,192,432 options remained outstanding** as of June 30, 2025[96](index=96&type=chunk) - The 2019 Share Option Scheme has approximately 4 years and 3 months remaining, with **33,596,629 options available for future grant** as of June 30, 2025[102](index=102&type=chunk) [Pre-IPO Share Option Scheme](index=29&type=section&id=Pre-IPO%20Share%20Option%20Scheme) Details of Outstanding Options under Pre-IPO Share Option Scheme (as of June 30, 2025) | Grantee | Date of Grant | Outstanding at Jan 1, 2025 | Exercised | Lapsed | Outstanding at June 30, 2025 | Exercise Price (USD) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Director** | | | | | | | | Mr Gao Nianshu | Jul 11, 2018 | 800,000 | — | — | 800,000 | 1.9225 | | | Aug 1, 2018 | 2,998,656 | — | — | 2,998,656 | 1.2725 | | *Sub-total* | | 3,798,656 | — | — | 3,798,656 | | | **Employees** | | | | | | | | | Aug 1, 2018 | 11,321,096 | 823,008 | 374,536 | 10,123,552 | 1.2725 | | | Jul 11, 2018 | 22,127,720 | — | 17,065,440 | 5,062,280 | 1.9225 | | | Aug 1, 2018 | 36,893,144 | — | 2,685,200 | 34,207,944 | 1.9225 | | *Sub-total* | | 70,341,960 | 823,008 | 20,125,176 | 49,393,776 | | | **Total** | | 74,140,616 | 823,008 | 20,125,176 | 53,192,432 | | [2019 Share Option Scheme](index=30&type=section&id=2019%20Share%20Option%20Scheme) Details of Outstanding Options under 2019 Share Option Scheme (as of June 30, 2025) | Grantee | Date of Grant | Outstanding at Jan 1, 2025 | Granted | Exercised | Lapsed | Outstanding at June 30, 2025 | Exercise Price (HKD) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Directors** | | | | | | | | | Dr Zhang Ya-Qin | Jun 16, 2020 | 112,000 | — | — | — | 112,000 | 9.56 | | Mr Ge Ming | Jun 16, 2020 | 112,000 | — | — | — | 112,000 | 9.56 | | Ms Tao Ping | Mar 25, 2021 | 112,000 | — | — | — | 112,000 | 12.46 | | **Others** | | | | | | | | | **Former Director** | | | | | | | | | Dr Gao Qunyao | Jun 16, 2020 | 112,000 | — | — | — | 112,000 | 9.56 | | **Employees** | | | | | | | | | | Jun 16, 2020 | 6,756,760 | — | 1,038,760 | 88,000 | 5,630,000 | 9.56 | | | Jun 9, 2021 | 10,254,912 | — | 60,800 | 680,078 | 9,514,034 | 12.54 | | | Mar 11, 2022 | 12,293,028 | — | — | 679,360 | 11,613,668 | 13.24 | | | May 10, 2022 | 2,695,895 | — | — | — | 2,695,895 | 13.32 | | | Jun 14, 2023 | 15,960,000 | — | 96,000 | 654,440 | 15,209,560 | 11.72 | | | Aug 16, 2024 | 18,400,000 | — | — | 184,500 | 18,215,500 | 5.20 | | *Sub-total* | | 66,360,595 | — | 1,195,560 | 2,286,378 | 62,878,657 | | | **Total** | | 66,808,595 | — | 1,195,560 | 2,286,378 | 63,326,657 | | [Share Award Schemes](index=31&type=section&id=Share%20Award%20Schemes) The company operates 2020 and 2023 Share Award Schemes, which utilize existing shares rather than issuing new ones, with a combined total of over 26.5 million shares available for future grants - The 2020 Share Award Scheme has approximately 5 years and 4 months remaining, with **3,258,300 awarded shares available for future grant** as of June 30, 2025[104](index=104&type=chunk) - The 2023 Share Award Scheme has approximately 8 years and 4 months remaining, with **23,275,215 awarded shares available for future grant** as of June 30, 2025[111](index=111&type=chunk) - No new awarded shares were granted during the reporting period, but some previously awarded shares either vested or lapsed[106](index=106&type=chunk)[114](index=114&type=chunk) [2020 Share Award Scheme](index=31&type=section&id=2020%20Share%20Award%20Scheme) Details of Unvested Awarded Shares under 2020 Share Award Scheme (as of June 30, 2025) | Grantee | Date of Grant | No. of Unvested Awarded Shares at Jan 1, 2025 | No. of Awarded Shares Granted during the Period | No. of Awarded Shares Vested during the Period | No. of Awarded Shares Lapsed during the Period | No. of Unvested Awarded Shares at June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Employees | May 26, 2021 | 324,000 | — | 324,000 | — | — | | | Mar 11, 2022 | 300,000 | — | 300,000 | — | — | | | Jun 29, 2023 | 4,540,800 | — | 2,530,800 | — | 2,010,000 | | **Total** | | 5,164,800 | — | 3,154,800 | — | 2,010,000 | [2023 Share Award Scheme](index=32&type=section&id=2023%20Share%20Award%20Scheme) Details of Unvested Awarded Shares under 2023 Share Award Scheme (as of June 30, 2025) | Grantee | Date of Grant | No. of Unvested Awarded Shares at Jan 1, 2025 | No. of Awarded Shares Granted during the Period | No. of Awarded Shares Vested during the Period | No. of Awarded Shares Lapsed during the Period | No. of Unvested Awarded Shares at June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Director** | | | | | | | | Mr Gao Nianshu | Oct 24, 2024 | 1,600,000 | — | — | — | 1,600,000 | | **Employees** | Oct 15, 2024 | 18,080,000 | — | — | 190,000 | 17,890,000 | | **Total** | | 19,680,000 | — | — | 190,000 | 19,490,000 | [Employment Management](index=34&type=section&id=Employment%20Management) The Group strictly adheres to labor laws, protects employee rights, and had a total of 11,379 full-time employees as of June 30, 2025, a decrease from the end of 2024 - As of June 30, 2025, the Group had **11,379 full-time employees**, a decrease from 12,868 at December 31, 2024[117](index=117&type=chunk) - The company strictly complies with labor laws and regulations, protects employee rights, and prohibits the use of child labor[117](index=117&type=chunk) [Remuneration and Benefits](index=35&type=section&id=Remuneration%20and%20Benefits) The Group's employee remuneration system consists of a monthly salary and an annual bonus, with statutory social insurance and housing provident fund contributions - The employee remuneration system comprises a monthly salary and an annual bonus, with statutory contributions to social insurance and housing provident funds[119](index=119&type=chunk) - The company provides multiple benefits, including personal and medical insurance, supplementary insurance, health check-ups, and paid leave[119](index=119&type=chunk) [Retirement Benefit Schemes](index=35&type=section&id=Retirement%20Benefit%20Schemes) The Group participates in defined contribution retirement benefit schemes as required by Chinese regulations, with contributions expensed as they are incurred - The Group participates in defined contribution retirement benefit schemes as stipulated by Chinese law, with contributions recognized as an expense when incurred[120](index=120&type=chunk) [Performance Management and Employee Development](index=35&type=section&id=Performance%20Management%20and%20Employee%20Development) The Group uses performance management to enhance corporate and employee performance and identifies high-potential talent through a promotion management system - Performance management is used to improve Group and employee performance, while a promotion management system identifies high-potential talent[121](index=121&type=chunk) - The company offers diverse education and training opportunities to enhance core competencies and build a strong team of employees and managers[121](index=121&type=chunk) [Events After the Reporting Period](index=35&type=section&id=Events%20After%20the%20Reporting%20Period) No significant events affecting the Group have occurred between the end of the reporting period and the date of this interim report - **No significant post-reporting period events** occurred between the period end and the date of this interim report[122](index=122&type=chunk) [Review Report](index=36&type=section&id=Review%20Report) [Review Report](index=36&type=section&id=Review%20Report) KPMG has reviewed the interim financial report in accordance with Hong Kong Standard on Review Engagements 2410 and found no material misstatements - KPMG has reviewed the interim financial report, with the scope of the review being less than that of an audit[125](index=125&type=chunk)[126](index=126&type=chunk) - Based on the review, nothing has come to their attention that causes them to believe the interim financial report is not prepared in all material respects in accordance with HKAS 34[127](index=127&type=chunk) [Condensed Consolidated Financial Statements](index=37&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=37&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company recorded revenue of RMB 2.598 billion, a gross profit of RMB 783 million, and a loss for the period of RMB 202 million Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary (For the six months ended June 30, 2025) | Metric | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Revenue | 2,597,875 | 2,994,262 | | Cost of revenue | (1,814,839) | (2,255,981) | | Gross profit | 783,036 | 738,281 | | Loss before taxation | (236,524) | (91,392) | | Income tax credit | 34,195 | 21,261 | | Loss for the period | (202,329) | (70,131) | | Loss for the period attributable to equity holders of the Company | (198,261) | (59,490) | | Total comprehensive income for the period | (203,084) | (70,274) | [Condensed Consolidated Statement of Financial Position](index=38&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets were RMB 9.311 billion, total liabilities were RMB 3.153 billion, and net assets were RMB 6.158 billion Condensed Consolidated Statement of Financial Position Summary (as of June 30, 2025) | Metric | June 30, 2025 (RMB'000) | Dec 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Non-current assets | 2,903,706 | 2,861,391 | | Current assets | 6,407,670 | 7,638,575 | | Current liabilities | 2,810,280 | 3,461,615 | | Net current assets | 3,597,390 | 4,176,960 | | Net assets | 6,158,188 | 6,641,199 | | Equity attributable to equity holders of the Company | 6,203,482 | 6,682,425 | - **Goodwill is the largest component of non-current assets**, at approximately RMB 1.932 billion[133](index=133&type=chunk) - **Cash and cash equivalents decreased** from RMB 1.618 billion at the end of 2024 to RMB 613 million as of June 30, 2025[133](index=133&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=40&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, equity attributable to equity holders of the Company decreased from RMB 6.682 billion to RMB 6.203 billion, mainly due to the period's loss and dividend distribution Condensed Consolidated Statement of Changes in Equity Summary (For the six months ended June 30, 2025) | Equity Item | Jan 1, 2025 (RMB'000) | June 30, 2025 (RMB'000) | | :--- | :--- | :--- | | Equity attributable to equity holders of the Company | 6,682,425 | 6,203,482 | | Loss for the period | — | (198,261) | | Total comprehensive income | — | (199,016) | | Recognition of equity-settled share-based payments | — | 48,808 | | Dividends distributed for prior years | — | (347,151) | - Equity attributable to equity holders of the Company **decreased by RMB 479 million**, primarily due to the loss for the period and dividend distribution[139](index=139&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=41&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash used in operating activities was RMB 594 million, a significant YoY improvement, while cash and cash equivalents at the end of the period decreased substantially Condensed Consolidated Statement of Cash Flows Summary (For the six months ended June 30, 2025) | Cash Flow Type | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Net cash used in operating activities | (594,425) | (919,009) | | Net cash generated from investing activities | 7,970 | 328,375 | | Net cash used in financing activities | (417,475) | (696,196) | | Net decrease in cash and cash equivalents | (1,003,930) | (1,286,830) | | Cash and cash equivalents at 30 June | 612,693 | 1,326,432 | - **Net cash used in operating activities improved by 35.3% YoY**, reflecting the company's efforts in operational efficiency and cost control[142](index=142&type=chunk) - **Net cash generated from investing activities decreased by 97.6%**, mainly due to differences in the scale of redeemed wealth management products[142](index=142&type=chunk) [Notes to the Interim Financial Report](index=42&type=section&id=Notes%20to%20the%20Interim%20Financial%20Report) [General Information](index=42&type=section&id=General%20Information) AsiaInfo Technologies Holdings Limited was incorporated in the British Virgin Islands, and its shares are listed on the Main Board of the Hong Kong Stock Exchange - The Company is incorporated in the British Virgin Islands and its shares are listed on the Hong Kong Stock Exchange[145](index=145&type=chunk) - The Group's principal activities are the provision of software products and related services[146](index=146&type=chunk) [Basis of Preparation](index=42&type=section&id=Basis%20of%20Preparation) The interim financial report has been prepared in accordance with Hong Kong Accounting Standard 34 and the applicable disclosure requirements of the Listing Rules - The interim financial report was prepared in accordance with HKAS 34 and the Listing Rules and was published on August 4, 2025[147](index=147&type=chunk) - The report adopts the same accounting policies as the 2024 annual financial statements and has been reviewed by KPMG[147](index=147&type=chunk)[148](index=148&type=chunk) [Significant Accounting Policies](index=43&type=section&id=Significant%20Accounting%20Policies) The interim financial report is prepared on the historical cost basis, except for certain financial instruments measured at fair value - The interim financial report is prepared on the historical cost basis, with certain financial instruments measured at fair value[149](index=149&type=chunk) - The Group has applied amendments to HKAS 21, which had no material impact[150](index=150&type=chunk) [Revenue](index=43&type=section&id=Revenue) The Group's revenue is primarily derived from project-based software development contracts and is recognized net of sales-related taxes - Revenue is mainly from project-based software development contracts and is recognized net of sales-related taxes[152](index=152&type=chunk) Revenue Disaggregation (For the six months ended June 30, 2025) | Timing of Revenue Recognition | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Point in time | 152,367 | 272,964 | | Over time | 2,445,508 | 2,721,298 | | | | | | **Type of goods and services** | | | | Provision of services | 2,469,563 | 2,769,909 | | Sales of goods | 128,312 | 224,353 | - The Group operates in a single operating segment, with the vast majority of its revenue and non-current assets located in China[153](index=153&type=chunk)[154](index=154&type=chunk) [Other Income](index=44&type=section&id=Other%20Income) In H1 2025, other income totaled RMB 20.13 million, a decrease from RMB 31.45 million in the same period of 2024 Composition of Other Income (For the six months ended June 30, 2025) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Government grants | 8,800 | 17,758 | | Interest income from bank balances, restricted bank deposits and time deposits | 6,889 | 13,180 | | Net gain on disposal of financial assets at FVTPL | 966 | 4,609 | | Fair value changes of financial assets at FVTPL | 114 | (3,791) | | Others | 3,360 | (311) | | **Total** | 20,129 | 31,445 | - Government grants are primarily related to the development of high-tech industries and human resources[155](index=155&type=chunk) [Income Tax Credit](index=45&type=section&id=Income%20Tax%20Credit) In H1 2025, the Group received an income tax credit of RMB 34.20 million, an increase from RMB 21.26 million in the same period of 2024 Income Tax Credit (For the six months ended June 30, 2025) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | **Current tax** | | | | Current tax | 49,418 | 3,571 | | Deferred tax | (83,613) | (24,832) | | **Total** | (34,195) | (21,261) | - The tax rate for Chinese subsidiaries is 25%, with some enjoying preferential rates of 10% and 15%, and a 200% tax deduction for R&D expenses[156](index=156&type=chunk) - The Hong Kong minimum top-up tax is not expected to have a material impact on the Group, and the Company is not subject to income tax in the British Virgin Islands[157](index=157&type=chunk)[158](index=158&type=chunk) [Loss for the Period](index=46&type=section&id=Loss%20for%20the%20Period) In H1 2025, the Group's loss for the period was RMB 202 million, primarily influenced by staff costs, cost of inventories, and depreciation and amortization Major Components of Loss for the Period (For the six months ended June 30, 2025) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Total staff costs | 1,789,583 | 1,820,803 | | Cost of inventories recognised as an expense | 206,063 | 190,919 | | Depreciation of property, plant and equipment | 22,081 | 20,133 | | Depreciation of right-of-use assets | 41,396 | 47,666 | | Amortisation of intangible assets | 10,385 | 4,769 | | Short-term and low-value lease expenses | 24,224 | 27,311 | - **Total staff costs amounted to RMB 1.790 billion**, representing the largest expense item, including salaries, benefits, and share-based payments[159](index=159&type=chunk) [Dividends](index=46&type=section&id=Dividends) The Board of Directors has resolved not to declare an interim dividend for the reporting period - The Board of Directors has resolved **not to declare an interim dividend**[62](index=62&type=chunk) Prior Year Dividend Distribution (For the six months ended June 30, 2025) | Dividend Type | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Final dividend | 217,078 | 351,697 | | Special dividend | 137,827 | 510,014 | [Loss per Share](index=47&type=section&id=Loss%20per%20Share) For the six months ended June 30, 2025, both basic and diluted loss per share were RMB 0.22, an increase from RMB 0.06 in the same period of 2024 Loss per Share (For the six months ended June 30, 2025) | Metric | 2025 (RMB Yuan) | 2024 (RMB Yuan) | | :--- | :--- | :--- | | Basic loss per share | (0.22) | (0.06) | | Diluted loss per share | (0.22) | (0.06) | - The weighted average number of ordinary shares used to calculate basic loss per share was **898,222,535**[161](index=161&type=chunk) - Share options and restricted share units were not included in the calculation of diluted loss per share as they were anti-dilutive[162](index=162&type=chunk) [Movements in Property, Plant and Equipment and Right-of-use Assets](index=48&type=section&id=Movements%20in%20Property,%20Plant%20and%20Equipment%20and%20Right-of-use%20Assets) During the interim period, the Group incurred expenses of RMB 16.64 million on leasehold improvements and furniture, fixtures, and equipment - During the interim period, expenses of **RMB 16.64 million** were incurred for leasehold improvements and furniture, fixtures, and equipment[163](index=163&type=chunk) - A loss of **RMB 0.41 million** was generated from the disposal of certain leasehold improvements and furniture, fixtures, and equipment[163](index=163&type=chunk) - Right-of-use assets of **RMB 45.22 million** and lease liabilities of **RMB 40.81 million** were recognized due to new lease agreements[164](index=164&type=chunk) [Deferred Tax Assets and Liabilities](index=48&type=section&id=Deferred%20Tax%20Assets%20and%20Liabilities) As of June 30, 2025, the Group's deferred tax assets were RMB 166 million, deferred tax liabilities were RMB 261 million, resulting in a net deferred tax liability of RMB 95 million Analysis of Deferred Tax Assets and Liabilities (as of June 30, 2025) | Item | June 30, 2025 (RMB'000) | Dec 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Deferred tax assets | 165,701 | 131,381 | | Deferred tax liabilities | (260,692) | (309,985) | | **Net** | (94,991) | (178,604) | - Deferred tax assets primarily arise from impairment losses, tax losses, and accrued payroll and expenses[165](index=165&type=chunk) - The directors believe it is probable that the deferred tax assets will be realized through future taxable profits[166](index=166&type=chunk) [Trade and Bills Receivables](index=49&type=section&id=Trade%20and%20Bills%20Receivables) As of June 30, 2025, total trade and bills receivables were RMB 1.785 billion, a 13.6% decrease from the end of 2024, mainly due to a significant reduction in bills receivable Trade and Bills Receivables (as of June 30, 2025) | Item | June 30, 2025 (RMB'000) | Dec 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Bills receivable | 93,735 | 502,052 | | Trade receivables | 1,927,016 | 1,737,433 | | Less: allowance for credit losses | (235,680) | (174,410) | | **Total** | 1,785,071 | 2,065,075 | - **Trade and bills receivables decreased by 13.6% YoY**, mainly due to the maturity of bills receivable[67](index=67&type=chunk)[167](index=167&type=chunk) - The Group generally grants an average credit period of 30 days and considers the credit quality of all counterparties to be high, with expected credit losses being insignificant[167](index=167&type=chunk)[169](index=169&type=chunk) [Inventories](index=50&type=section&id=Inventories) As of June 30, 2025, total inventories were RMB 412 million, a significant 49.9% increase from the end of 2024, mainly due to higher costs to fulfill contracts Composition of Inventories (as of June 30, 2025) | Item | June 30, 2025 (RMB'000) | Dec 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Equipment and materials | 59,032 | 58,902 | | Other contract costs | 352,686 | 215,850 | | **Total** | 411,718 | 274,752 | - **Inventories increased significantly by 49.9% YoY**, mainly due to higher costs to fulfill contracts[70](index=70&type=chunk)[170](index=170&type=chunk) - During the period, an impairment loss of **RMB 14.84 million** was recognized for equipment and materials, and an impairment loss of **RMB 7.54 million** was recognized for capitalized contract costs[170](index=170&type=chunk) [Impairment Assessment on Financial Assets and Other Items under the Expected Credit Loss Model](index=51&type=section&id=Impairment%20Assessment%20on%20Financial%20Assets%20and%20Other%20Items%20under%20the%20Expected%20Credit%20Loss%20Model) For the six months ended June 30, 2025, the recognized impairment loss (net of reversal) was RMB 105 million, a significant increase from RMB 32.13 million in the same period of 2024 Recognized Impairment Loss (net of reversal) (For the six months ended June 30, 2025) | Item | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Impairment loss recognised, net of reversal | 105,239 | 32,127 | - The **recognized impairment loss increased significantly YoY**, reflecting the results of the credit risk assessment[171](index=171&type=chunk) [Trade and Bills Payables](index=51&type=section&id=Trade%20and%20Bills%20Payables) As of June 30, 2025, total trade and bills payables were RMB 958 million, a 13.2% decrease from the end of 2024, representing a normal fluctuation in line with business development Trade and Bills Payables (as of June 30, 2025) | Item | June 30, 2025 (RMB'000) | Dec 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Trade payables | 741,219 | 865,626 | | Bills payable | 217,274 | 238,088 | | **Total** | 958,493 | 1,103,714 | - **Trade and bills payables decreased by 13.2% YoY**, a normal fluctuation related to business development[71](index=71&type=chunk)[172](index=172&type=chunk) Ageing Analysis of Trade and Bills Payables (as of June 30, 2025) | Ageing | June 30, 2025 (RMB'000) | Dec 31, 2024 (RMB'000) | | :--- | :--- | :--- | | 1 to 90 days | 487,538 | 601,728 | | 91 to 180 days | 94,048 | 77,546 | | 181 to 365 days | 131,201 | 244,346 | | Over 1 year | 245,706 | 180,094 | [Share Capital](index=52&type=section&id=Share%20Capital) As of June 30, 2025, the total number of issued shares increased to 937,322,880, mainly due to the exercise of options under the Pre-IPO and 2019 Share Option Schemes Details of Share Capital Changes (as of June 30, 2025) | Item | Number of shares | Par value per share | Share capital (HKD) | | :--- | :--- | :--- | :--- | | At 31 December 2024 | 935,304,312 | HK$0.0000000125 | 11.69 | | Exercise of share options | 2,018,568 | HK$0.0000000125 | 0.03 | | At 30 June 2025 | 937,322,880 | HK$0.0000000125 | 11.72 | - The number of issued shares **increased by 2,018,568**, mainly due to the exercise of options under the Pre-IPO and 2019 Share Option Schemes[173](index=173&type=chunk) [Purchase of Shares](index=52&type=section&id=Purchase%20of%20Shares) For the six months ended June 30, 2025, the company did not purchase any shares for its share award schemes, but 3,154,800 restricted share units were vested using shares purchased from the market - For the six months ended June 30, 2025, the company **did not purchase any shares** for its share award schemes[175](index=175&type=chunk) - **3,154,800 restricted share units were vested** using shares purchased from the market[175](index=175&type=chunk) - In H1 2024, the company purchased 10,260,800 shares for its share award schemes for a total consideration of RMB 69.21 million[174](index=174&type=chunk)[175](index=175&type=chunk) [Share-based Payments](index=53&type=section&id=Share-based%20Payments) For the six months ended June 30, 2025, the company did not grant any new share options or restricted share units, but recognized a total share-based payment expense of RMB 48.81 million - For the six months ended June 30, 2025, **no new share options or restricted share units were granted**[176](index=176&type=chunk) - A total share-based payment expense of **RMB 48.81 million** was recognized, slightly higher than the same period last year[176](index=176&type=chunk) [Financial Instruments](index=53&type=section&id=Financial%20Instruments) The Group's financial assets measured at fair value on a recurring basis mainly include wealth management products, investment funds, and unlisted equity investments, most of which are valued using Level 3 inputs Financial Assets Measured at Fair Value (as of June 30, 2025) | Item | June 30, 2025 (RMB'000) | Dec 31, 2024 (RMB'000) | Fair Value Hierarchy | | :--- | :--- | :--- | :--- | | **Financial assets at FVTPL** | | | | | — Wealth management products | 158,158 | 179,217 | Level 3 | | — Investment funds | 26,896 | 27,003 | Level 3 | | — Unlisted equity investments | 43,562 | 43,562 | Level 3 | | — Listed equity investments | — | 186 | Level 1 | | *Total* | 228,616 | 249,968 | | | **Financial assets at FVTOCI** | | | | | — Unlisted equity investments | 40,647 | 41,577 | Level 3 | - The majority of financial assets measured at fair value are classified as **Level 3**, valued using discounted cash flow or market approaches[178](index=178&type=chunk) - During the period, the total value of Level 3 financial assets decreased from RMB 291 million to RMB 269 million[179](index=179&type=chunk) [Commitments](index=55&type=section&id=Commitments) As of June 30, 2025, the Group's commitments for the purchase of property, plant, equipment, and intangible assets were approximately RMB 11.29 million - As of June 30, 2025, **capital commitments were approximately RMB 11.29 million**, a decrease from the end of 2024[180](index=180&type=chunk) [Related Party Balances and Transactions](index=56&type=section&id=Related%20Party%20Balances%20and%20Transactions) As of June 30, 2025, the Group had significant receivable and payable balances with related parties, primarily with shareholder China Mobile Group Related Party Balances (as of June 30, 2025) | Item | June 30, 2025 (RMB'000) | Dec 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Total balances due from related parties | 2,751,387 | 2,624,637 | | Total balances due to related parties | 87,705 | 84,826 | - Balances due from related parties primarily consist of receivables from shareholder China Mobile Group for software services provided[182](index=182&type=chunk) Significant Transactions with Related Parties (For the six months ended June 30, 2025) | Transaction Type | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Software business services provided to a shareholder | 1,442,619 | 1,706,772 | | ICT services and products received from it | 11,096 | 6,734 | | Total remuneration for key management personnel | 19,809 | 25,511 |

Core Insights - The article highlights that AsiaInfo Technologies (China) Co., Ltd. has obtained a patent for "MEC Federated Learning Method, Device, and Computer Readable Storage Medium" with the authorization announcement number CN114692898B, applied on March 2022 [1] Company Overview - AsiaInfo Technologies (China) Co., Ltd. was established in 1995 and is located in Beijing, primarily engaged in internet and related services [1] - The company has a registered capital of 26.04057 million USD [1] - According to data from Tianyancha, AsiaInfo has invested in 16 companies and participated in 5,000 bidding projects [1] - The company holds 534 trademark records and 395 patent records, along with 13 administrative licenses [1]

Group 1 - The core viewpoint highlights the rapid growth of new business segments, while the ICT business faces temporary pressure, with a focus on the long-term potential of AI business for AsiaInfo Technology [3][4] - In the first half of 2025, AsiaInfo Technology reported revenue of approximately 2.598 billion RMB, a year-on-year decrease of 13.2%, primarily due to pressure on the ICT business [3] - The AI delivery business saw a remarkable increase, with revenue of 26 million RMB, a year-on-year growth of 7600%, and orders reaching 70 million RMB, a year-on-year increase of 7800% [3][4] Group 2 - New Yangfeng's half-year performance showed steady growth, with revenue of 9.398 billion RMB, a year-on-year increase of 11.63%, and net profit of 951 million RMB, up 28.98% [7][9] - The sales of new-type fertilizers significantly contributed to the performance, with revenue from phosphate fertilizers reaching 2.311 billion RMB, a year-on-year increase of 39.34% [9][10] - The company is expanding its capital expenditure in various projects, including phosphate mining and new energy initiatives, to enhance its product structure and market presence [13][14] Group 3 - Industrial Fulian's half-year report indicated revenue of 360.76 billion RMB, a year-on-year increase of 35.58%, and net profit of 12.113 billion RMB, up 38.61% [17][18] - The AI server revenue grew over 60%, with the GB200 series achieving production ramp-up, reflecting strong demand in the AI infrastructure market [19][20] - The company is expected to benefit from the increasing capital expenditure of major cloud service providers, particularly in AI cloud infrastructure [18][19] Group 4 - Hua Hong Semiconductor reported Q2 revenue of 566 million USD, a year-on-year increase of 18.3%, with a gross margin of 10.9% [23][24] - The company anticipates Q3 revenue between 620-640 million USD, indicating positive growth prospects despite depreciation pressures from new factory operations [25][26] - The semiconductor market is expected to recover, benefiting from increased wafer shipments and strategic partnerships [26] Group 5 - WanHua Chemical's half-year revenue was 90.9 billion RMB, a year-on-year decrease of 6.4%, with net profit of 6.12 billion RMB, down 25.1% [31][32] - The company is focusing on cost control and efficiency improvements to mitigate the impact of declining product margins [34] - WanHua is expanding its polyurethane production capacity, with several new projects underway to strengthen its market position [36][37]

Core Viewpoint - The communication industry is facing significant pressure due to cost-cutting measures by operators, leading to a decline in traditional ICT service performance, which is pushing companies like AsiaInfo Technology to seek new growth opportunities [2][7]. Financial Performance - In the first half of 2025, AsiaInfo Technology reported revenue of approximately 2.598 billion RMB, a year-on-year decrease of 13.2%, and a net loss of about 48 million RMB [2]. - The company's gross profit was 783 million RMB, reflecting a year-on-year increase of 6.1%, with a gross margin rising to 30.1% [2]. - Operating cash flow showed a significant improvement, with a year-on-year reduction in net outflow of 35.3% [2]. New Business Growth Engines - The performance of three emerging business areas—AI large model applications, 5G private networks, and smart operations—has become a new growth engine for AsiaInfo Technology [3][4]. - AI large model delivery generated approximately 26 million RMB in revenue with orders reaching about 70 million RMB, marking a year-on-year increase of 78 times [4][5]. - Orders for 5G private networks amounted to approximately 82 million RMB, a year-on-year increase of 51.7%, despite a revenue decline of 26.3% to 47 million RMB [4][6]. Strategic Adjustments - To address the challenges in traditional ICT support business, which saw a revenue decline of 14.7% to approximately 2.118 billion RMB, AsiaInfo Technology plans to optimize personnel and reduce non-labor costs while maintaining high R&D investment [7][8]. - The company has restructured its business classification, categorizing traditional services as "ICT support business" and identifying AI large model applications, 5G private networks, and smart operations as the three main growth engines [7]. Future Outlook - AsiaInfo Technology aims to solidify its foundation in the communication industry while accelerating the conversion of orders in AI large model applications and 5G private networks to achieve high growth for the year [8]. - The company plans to focus on industries with strong new business application willingness and payment capability, such as energy, oil and petrochemicals, and aviation, to mitigate the impact of the communication industry's downturn [8].

智通财经8月8日讯(编辑 童古 汤赞淇)以下为各家机构对港股的最新评级和目标价： 里昂：维持中芯国际跑赢大市评级 目标价59.2港元 里昂就中芯国际(00981.HK)发布研报称，该公司二季度收入环比下跌1.7%至22.1亿美元，好于预期。毛 利率20.4%，高于18至20%的预期范围，净利润1.325亿美元，较市场预期低24%。预计三季度收入环比 增长至7%，以中位数6%增幅计，收入为23.4亿美元，较市场预期低1%。毛利率介于18至20%，中位数 19%，较预期低2.1%。 里昂：维持华虹半导体跑赢大市评级 升目标价至50.5港元 交银国际：维持百济神州买入评级 目标价225港元 交银国际就百济神州(06160.HK)发布研报称，公司2Q25业绩超预期，核心产品销售延续高增长，经营 层面进一步扩大盈利。百济神州作为中国创新药出海标杆，泽布替尼和替雷利珠全球销售持续亮眼， HER2双抗表现优异。公司2H25起进入催化剂密集兑现期，Bcl-2抑制剂和BTK CDAC等下一代创新管线 即将进入获批上市/注册性临床数据密集读出的关键节点，有望持续催化股价。 中金公司：维持美高梅中国优于大市评级 中金公司就美高梅中 ...

Core Viewpoint - AsiaInfo Technology (01675) is strategically navigating through cyclical challenges in the telecommunications industry by focusing on three new growth engines: AI large model applications, 5G private networks, and intelligent operations, aiming to establish a second growth curve while countering the decline of traditional business [1][2]. Group 1: Financial Performance - In the first half of 2025, AsiaInfo Technology achieved a revenue of approximately RMB 25.98 billion, with ICT support business revenue at about RMB 21.18 billion, intelligent operation business revenue at approximately RMB 4.08 billion, 5G private network and application business revenue at around RMB 0.47 billion, and AI large model application and delivery business revenue at about RMB 0.26 billion [1]. - The AI large model application and delivery business saw explosive growth, with revenue reaching RMB 0.26 billion, a year-on-year increase of 76 times, and signed order amounts of approximately RMB 70 million, reflecting a year-on-year growth of 78 times [2]. Group 2: Business Segments - AI Large Model Applications and Delivery: This segment is experiencing rapid growth, transitioning from technical exploration to commercial realization, with a gross margin currently between 20-30%, expected to exceed 50% as cross-industry applications increase [2][3]. - 5G Private Networks: Despite a decline in revenue due to delayed nuclear power orders, signed order amounts increased by 51.7% to RMB 0.82 billion, indicating strong growth potential in various verticals, including nuclear power and renewable energy [4][5]. - Intelligent Operations: Non-telecom sectors have become a major growth driver, with overall orders increasing by 18.2%. Key growth areas include financial services, where orders surged by 48.3%, and the implementation of result-based payment models, which accounted for 33.4% of revenue, up 6.7 percentage points year-on-year [6]. Group 3: Strategic Initiatives - The company is deepening its strategic partnership with Alibaba Cloud, enhancing its large model capabilities through collaborative projects, and has established a unique three-tier tool system to improve delivery efficiency [2]. - R&D investment remains a priority, with 16% of revenue allocated to R&D, totaling RMB 4.15 billion in the first half of 2025, leading to significant improvements in cash flow, with net cash from operating activities at approximately RMB 5.94 billion, a 35.3% year-on-year improvement [7]. - The company aims to accelerate order signing and expand its AI large model delivery business, targeting an annual order volume of RMB 2-3 billion, and aims for over RMB 4 billion in 5G private network orders [7].

尽管面临传统业务承压的阶段性考验，但通过AI大模型应用与交付、5G专网与应用、数智运营三大新 引擎，公司正积极实现增长动能的系统性切换。 站在经济浪潮与通信行业深度变革的交汇点，亚信科技（01675）正以战略定力突破周期性挑战。 2025年上半年，亚信科技实现营业收入约人民币25.98亿元。其中，ICT支撑业务收入约人民币21.18亿 元，数智运营业务收入约人民币4.08亿元，5G专网与应用业务收入约人民币0.47亿元，AI大模型应用与 交付业务收入约人民币0.26亿元。 在中期业绩沟通会上，亚信科技管理层也首次系统性拆解增长逻辑：面对通信行业周期性调整，公司以 三大业务为核心，构建出一条第二增长曲线。这一转型，不仅在于对冲传统业务下行，更在于其重构了 科技服务企业的估值坐标系。 在政企智能化、能源数字化、商业运营效率革命等时代趋势下，下一步，亚信科技将如何锚定第二曲线 长期增长？ AI大模型应用与交付：定义产业智能化新范式 首先，在生态构建上，公司深度绑定阿里云星河计划，据亚信科技副总裁兼云事业部总经理傅葳表示， 公司在大模型能力上与阿里已有多年的合作，其中算力、基模部分由阿里负责，平台部分则由双方共同 负 ...

Core Viewpoint - AsiaInfo Technology Holdings Limited reported a significant increase in revenue and profit for the first half of 2025, driven primarily by explosive growth in AI large model application and delivery business, which has become a new growth engine for the company [1][3]. Financial Performance - The company achieved operating revenue of 2.598 billion yuan and gross profit of 783 million yuan, representing a year-on-year growth of 6.1% [1]. - The gross margin reached 30.1%, an increase of 5.4 percentage points year-on-year [1]. - Despite challenges in traditional ICT support business, the company expects significant performance improvement in the second half of the year, with annual profits projected to exceed the previous year [3][8]. AI Large Model Application and Delivery - In the first half of 2025, the AI large model application and delivery business generated approximately 26 million yuan in revenue, a staggering year-on-year growth of 76 times [4]. - The signed order amount reached approximately 70 million yuan, also reflecting a year-on-year increase of 78 times [4]. - The company anticipates total annual order volume to reach 200-300 million yuan, indicating strong market demand [4]. 5G Private Network and Applications - The 5G private network and application business signed order amounts of approximately 82 million yuan in the first half of 2025, a year-on-year increase of 51.7% [6]. - The company aims for an annual order target exceeding 400 million yuan, with accelerated order conversion expected in the second half [6]. - AsiaInfo maintains a leading position in the nuclear power sector, having secured projects across seven nuclear power bases in China [6]. Smart Operations - The smart operations business generated revenue of 408 million yuan in the first half of 2025, despite an overall revenue decline of 8.8% due to cost control by operators [7]. - Non-telecom sector orders grew by 18.2%, with significant increases in the financial sector (48.3% year-on-year) [7]. - The company is focused on creating value through data aggregation, scenario insights, and AI empowerment [7]. Cost Control and Future Outlook - The company has implemented cost reduction measures, achieving a 20% decrease in non-labor costs [8]. - The management emphasizes a mature cost control system, with a 19.6% reduction in operating costs despite a 13.2% decline in revenue [8]. - The company plans to maintain a steady growth strategy, with expectations for rapid growth in AI large models and 5G private networks, aiming for each business segment to reach the scale of a small to medium-sized operator within three years [8].