数智驱动、生态共进 持续探索"AI+"新场景 参加云商店专题论坛 快消云脑构建企业洞察智库 会上，玄武云助理总裁卢超出席大会华为云云商店专题论坛，发表主题演讲《玄瞳AI构建企业洞察智库：快消云脑》，玄武云代表参加生态伙伴交流会。 卢超认为，随着市场竞争的加剧，快消企业亟需通过数智化技术与方法论重塑"人、货、场"，其中，精细化洞察消费者需求，持续降低运营成本，提升人 效、营销转化率是重塑的重要路径。 快消云脑是基于玄瞳AI大模型技术打造的"数据驱动+智能决策"、专为快消行业提供从终端洞察到经营决策的全链路数智化解决方案，该应用整合云计算、 大数据、AI、IoT等多项技术，覆盖人员行为规范、渠道执行管控和营销费用优化三大核心场景，帮助企业在销售、营销、人员管理等环节实现数字化升 级。 依托自研AI图像识别、价签识别大模型、SKU超级模型等核心技术，快消云脑提供终端陈列检测、费用真实核销、SKU精准识别等关键功能，有效杜绝数 据造假，优化资源分配，推动营销转化率提升。目前，快消云脑在饮料、白酒、食品等多个细分领域具备丰富落地经验，显著提升企业运营效率与决策能 力。 9月18日，以"跃升行业智能化"为主题的第十届华为 ...

[Supplementary Announcement Overview](index=1&type=section&id=Supplementary%20Announcement%20Overview) This section provides an overview of the supplementary announcement, detailing its purpose and key additional information [Background and Purpose of the Announcement](index=1&type=section&id=Background%20and%20Purpose%20of%20the%20Announcement) This announcement supplements Xuanwu Cloud Technology Holdings Limited's 2024 annual report, providing additional details while affirming other report information remains unchanged - This announcement supplements Xuanwu Cloud Technology Holdings Limited's 2024 annual report, originally published on March 26, 2025, and re-issued on April 23, 2025[2](index=2&type=chunk) - The supplementary information complements the annual report without altering its other contents, which remain unchanged except as disclosed herein[3](index=3&type=chunk) [Supplementary Explanation on Treasury Shares Usage](index=1&type=section&id=Supplementary%20Explanation%20on%20Treasury%20Shares%20Usage) The company provides additional details on the 3,075,000 treasury shares, outlining their potential uses to enhance capital structure management flexibility - The company holds **3,075,000 treasury shares**[3](index=3&type=chunk) - Potential uses for treasury shares include, but are not limited to, funding the 2022 Restricted Share Award Scheme, future resale and transfer, and other purposes permitted by the Articles of Association and applicable Cayman Islands law[3](index=3&type=chunk) - Holding treasury shares provides the company with greater flexibility in managing its capital structure without issuing new shares[3](index=3&type=chunk) [Board of Directors Information](index=1&type=section&id=Board%20of%20Directors%20Information) This section lists the composition of the Board of Directors as of September 19, 2025, including executive and independent non-executive directors - As of September 19, 2025, the Board of Directors comprises[5](index=5&type=chunk) - Executive Directors: Mr. Chen Yonghui (Chairman, Chief Executive Officer), Mr. Huang Fangjie, Mr. Li Hairong, and Mr. Guo Haiqiu[4](index=4&type=chunk)[5](index=5&type=chunk) - Independent Non-Executive Directors: Mr. Du Jianqing, Ms. Wu Ruifeng, and Professor Wu Jintao[5](index=5&type=chunk)

[Company Information](index=3&type=section&id=Company%20Information) [Executive Directors](index=3&type=section&id=Executive%20Directors) This section lists the company's executive directors, including Mr. Chen Yonghui (Chairman and CEO), Mr. Huang Fangjie, Mr. Li Hairong, and Mr. Guo Haiqiu - Executive directors include Mr. Chen Yonghui (Chairman and Chief Executive Officer), Mr. Huang Fangjie, Mr. Li Hairong, and Mr. Guo Haiqiu[3](index=3&type=chunk) [Independent Non-Executive Directors](index=3&type=section&id=Independent%20Non-Executive%20Directors) This section lists the company's independent non-executive directors, including Mr. Du Jianqing, Ms. Wu Ruifeng, and Professor Wu Jintao - Independent non-executive directors include Mr. Du Jianqing, Ms. Wu Ruifeng, and Professor Wu Jintao[3](index=3&type=chunk) [Audit Committee](index=3&type=section&id=Audit%20Committee) This section details the composition of the company's Audit Committee, chaired by Ms. Wu Ruifeng, with Mr. Du Jianqing and Professor Wu Jintao as members - The Audit Committee is chaired by Ms. Wu Ruifeng, with members including Mr. Du Jianqing and Professor Wu Jintao[3](index=3&type=chunk) [Remuneration Committee](index=3&type=section&id=Remuneration%20Committee) This section details the composition of the company's Remuneration Committee, chaired by Professor Wu Jintao, with Mr. Guo Haiqiu and Ms. Wu Ruifeng as members - The Remuneration Committee is chaired by Professor Wu Jintao, with members including Mr. Guo Haiqiu and Ms. Wu Ruifeng[3](index=3&type=chunk) [Nomination Committee](index=3&type=section&id=Nomination%20Committee) This section details the composition of the company's Nomination Committee, chaired by Mr. Chen Yonghui, with Mr. Du Jianqing and Professor Wu Jintao as members - The Nomination Committee is chaired by Mr. Chen Yonghui, with members including Mr. Du Jianqing and Professor Wu Jintao[3](index=3&type=chunk) [Legal Adviser as to Hong Kong Law](index=3&type=section&id=Legal%20Adviser%20as%20to%20Hong%20Kong%20Law) The company's legal adviser as to Hong Kong law is Zhong Lun Law Firm (Limited Liability Partnership) - The company's Hong Kong legal adviser is Zhong Lun Law Firm (Limited Liability Partnership)[3](index=3&type=chunk) [Joint Company Secretaries](index=3&type=section&id=Joint%20Company%20Secretaries) The company's joint company secretaries are Ms. Ge Ping and Ms. Lin Zhiqin - The joint company secretaries are Ms. Ge Ping and Ms. Lin Zhiqin[3](index=3&type=chunk) [Authorised Representatives](index=3&type=section&id=Authorised%20Representatives) The company's authorised representatives are Mr. Chen Yonghui and Ms. Lin Zhiqin - The authorised representatives are Mr. Chen Yonghui and Ms. Lin Zhiqin[3](index=3&type=chunk) [Stock Code](index=3&type=section&id=Stock%20Code) The company's stock code is 2392 - The company's stock code is 2392[3](index=3&type=chunk) [Company Website](index=3&type=section&id=Company%20Website) The company's website is https://ir.wxchina.com/ - The company's website is https://ir.wxchina.com/[3](index=3&type=chunk) [Registered Office](index=3&type=section&id=Registered%20Office) The company's registered office is located in the Cayman Islands - The registered office is located at Harneys Fiduciary (Cayman) Limited, Grand Cayman KY1-1002, Cayman Islands[3](index=3&type=chunk) [Headquarters and Principal Place of Business in China](index=4&type=section&id=Headquarters%20and%20Principal%20Place%20of%20Business%20in%20China) The company's headquarters and principal place of business in China are located in Haizhu District, Guangzhou, China - The headquarters and principal place of business in China are located at Room 904, 9/F, No. 38 Haizhou Road, Haizhu District, Guangzhou, Guangdong Province, China[4](index=4&type=chunk) [Principal Place of Business in Hong Kong](index=4&type=section&id=Principal%20Place%20of%20Business%20in%20Hong%20Kong) The company's principal place of business in Hong Kong is located in Jardine House, Central, Hong Kong - The principal place of business in Hong Kong is located at 4/F, Jardine House, 1 Connaught Place, Central, Hong Kong[4](index=4&type=chunk) [Principal Share Registrar and Transfer Office](index=4&type=section&id=Principal%20Share%20Registrar%20and%20Transfer%20Office) The company's principal share registrar and transfer office is located in the Cayman Islands - The principal share registrar and transfer office is located at Harneys Fiduciary (Cayman) Limited, Grand Cayman KY1-1002, Cayman Islands[4](index=4&type=chunk) [Hong Kong Share Registrar](index=4&type=section&id=Hong%20Kong%20Share%20Registrar) The company's Hong Kong share registrar is Computershare Hong Kong Investor Services Limited - The Hong Kong share registrar is Computershare Hong Kong Investor Services Limited[4](index=4&type=chunk) [Auditor](index=4&type=section&id=Auditor) The company's auditor is PricewaterhouseCoopers - The auditor is PricewaterhouseCoopers[4](index=4&type=chunk) [Principal Bankers](index=4&type=section&id=Principal%20Bankers) The company's principal banker is China Merchants Bank - The principal banker is China Merchants Bank[4](index=4&type=chunk) [Financial Highlights](index=5&type=section&id=Financial%20Highlights) [Summary of Condensed Consolidated Statement of Comprehensive Income](index=5&type=section&id=Summary%20of%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue decreased by 36.5% year-on-year to RMB410,907 thousand, gross profit decreased by 26.0% to RMB74,950 thousand, operating loss expanded to RMB26,968 thousand, loss attributable to owners of the company was RMB25,874 thousand, and loss per share was RMB0.048 Summary of Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Revenue | 410,907 | 647,469 | | Gross Profit | 74,950 | 101,249 | | Operating Loss | (26,968) | (4,106) | | Loss Before Tax | (29,084) | (5,912) | | Loss Attributable to Owners of the Company | (25,874) | (6,444) | | Loss Per Share (RMB per share) | (0.048) | (0.012) | [Summary of Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Summary%20of%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets were RMB624,742 thousand, a slight decrease from the end of 2024, with equity attributable to owners of the company at RMB306,665 thousand and total liabilities at RMB325,273 thousand Summary of Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Non-current Assets | 32,569 | 39,765 | | Current Assets | 592,173 | 594,043 | | Total Assets | 624,742 | 633,808 | | Equity Attributable to Owners of the Company | 306,665 | 331,621 | | Non-controlling Interests | (7,196) | (3,552) | | Total Equity | 299,469 | 328,069 | | Non-current Liabilities | 2,137 | 8,026 | | Current Liabilities | 323,136 | 297,713 | | Total Liabilities | 325,273 | 305,739 | | Total Equity and Liabilities | 624,742 | 633,808 | [Business Review and Outlook](index=6&type=section&id=Business%20Review%20and%20Outlook) [Business Review](index=6&type=section&id=Business%20Review) During the reporting period, the company's revenue decreased by 36.5% year-on-year to RMB410.9 million due to domestic telecom industry regulatory policy adjustments, while focusing on AI+SaaS business to improve gross profit margin and achieve positive operating cash flow, continuing to strengthen technological innovation and provide digital intelligence services to customers in finance, FMCG, government & enterprise, and TMT sectors - In the first half of the year, the global digital economy maintained strong growth, with AI technology transitioning from breakthroughs to large-scale applications, empowering various industries[6](index=6&type=chunk) - Domestic revenue from PaaS and some SaaS services declined due to adjustments in domestic telecom industry regulatory policies[6](index=6&type=chunk) - Overseas cloud communication business achieved rapid customer and revenue growth, covering Southeast Asia, Latin America, East Asia, and the Middle East regions[6](index=6&type=chunk) First Half Revenue Scale | Indicator | H1 2025 (RMB million) | YoY Change | | :--- | :--- | :--- | | Revenue Scale | 410.9 | -36.5% | - Continued focus on AI+SaaS business led to a steady increase in gross profit margin, driving up the overall gross profit margin[7](index=7&type=chunk) - The Board adopted prudent and strict financial controls and strengthened cash flow management, resulting in positive operating cash flow in the first half of 2025[7](index=7&type=chunk) - During the reporting period, **410 authorized patents and computer software copyrights** were obtained, with **11 new additions**, maintaining product competitive advantages[7](index=7&type=chunk) - Provided digital intelligence transformation and upgrade services to a cumulative total of **2,351 customers** across four major industries: finance, FMCG, government & enterprise, and TMT[7](index=7&type=chunk) [SaaS Business](index=7&type=section&id=SaaS%20Business) SaaS business, comprising marketing cloud, sales cloud, and customer service cloud, generated RMB245.0 million in revenue, a 32.9% year-on-year decrease due to telecom policy impacts and proactive reduction of loss-making projects, while its gross profit margin improved to 26.5% SaaS Business Revenue and Gross Profit Margin | Indicator | H1 2025 (RMB million) | YoY Change | Gross Profit Margin | | :--- | :--- | :--- | :--- | | SaaS Revenue | 245.0 | -32.9% | 26.5% | | Gross Profit Margin YoY Increase | - | - | 3.4 percentage points | - Total revenue from core customers accounted for **95.0%** of total customer revenue, with an average contribution of **RMB1.3 million** per core customer[8](index=8&type=chunk) - The number of continuously focused SaaS customers reached **1,558**, with an average contribution of **RMB1.1 million** per SaaS core customer[8](index=8&type=chunk) [Marketing Cloud](index=7&type=section&id=Marketing%20Cloud) Marketing Cloud revenue decreased by 38.1% to RMB189.7 million due to telecom regulatory policy adjustments, while its ICC platform completed latest protocol adaptations for mainstream telecom operators, upgraded 5G messaging capabilities, increased trusted computing adaptations to 14 items, and achieved over 90% project win rate Marketing Cloud Revenue | Indicator | H1 2025 (RMB million) | YoY Change | | :--- | :--- | :--- | | Marketing Cloud Revenue | 189.7 | -38.1% | - ICC (Integrated Communication Center) completed the latest protocol adaptation for direct connection mode with mainstream domestic telecom operators, and **5G messaging capabilities were fully upgraded**[9](index=9&type=chunk) - ICC improved its trusted computing ecosystem, increasing trusted computing adaptations to **14 items**, completed HarmonyOS adaptation for components like Jiyan and iPush, and achieved a project win rate of **over 90%**[9](index=9&type=chunk) [Sales Cloud](index=8&type=section&id=Sales%20Cloud) Sales Cloud revenue decreased by 33.6% to RMB28.6 million due to proactive reduction of loss-making projects, but its gross profit margin improved, with core product [Smart 100] enhancing functions and adding configuration components, and Smart U-Customer upgrading based on Huawei Ascend AI ecosystem and DeepSeek large model to achieve 'second-level response' and multi-language versions Sales Cloud Revenue and ARR Contribution | Indicator | H1 2025 (RMB million) | YoY Change | ARR Contribution | | :--- | :--- | :--- | :--- | | Sales Cloud Revenue | 28.6 | -33.6% | 62.9% | | ARR Contribution YoY Increase | - | - | 12.4 percentage points | - Sales Cloud's core product [Smart 100] added plug-and-play configuration components such as 'Super Forms' and 'Surveys'[12](index=12&type=chunk) - Smart U-Customer was fully upgraded based on Huawei Ascend AI ecosystem and DeepSeek large model, achieving 'second-level response' for customer profile analysis and business opportunity prediction, and released multi-language versions[12](index=12&type=chunk) - Based on self-developed Xuantao large model and open-source large models like DeepSeek, AI products such as **SKU Super Model** and **'AI Reshoot Detective'** were launched, increasing the number of AI standard products to **12**[13](index=13&type=chunk) - Multiple AI agents such as 'Development Assistant', 'Market Survey Assistant', and 'Voice Operation Assistant' were built based on the aPaaS platform, and Smart U-Customer's business assistant 'Smart Xiao Xuan' has been successfully implemented[13](index=13&type=chunk) - AIoT Smart Refrigerator continued to expand offline terminal store coverage, iterated sales promotion application scenarios, and optimized customer advertising costs[14](index=14&type=chunk) [Customer Service Cloud](index=9&type=section&id=Customer%20Service%20Cloud) Customer Service Cloud revenue significantly increased by 71.7% to RMB26.6 million, with its post-loan management SaaS business gaining market share and seat scale growing by 19.9%, while contact points expanded from outbound calls to all-touchpoints, integrating DeepSeek and other open-source large models to develop a speech configuration robot that reduces workload by 90% Customer Service Cloud Revenue and Seat Scale Growth | Indicator | H1 2025 (RMB million) | YoY Change | | :--- | :--- | :--- | | Customer Service Cloud Revenue | 26.6 | +71.7% | | Seat Scale YoY Increase | - | +19.9% | - Customer Service Cloud's contact points expanded from outbound calls to all-touchpoints, achieving breakthroughs in new contact methods such as SMS and flash messages for post-loan management[15](index=15&type=chunk) - Integrated DeepSeek and other open-source large models to develop a speech configuration robot, which has been implemented for customers and can help reduce **90%** of speech configuration workload[15](index=15&type=chunk) - Reached a strategic cooperation with Tencent Cloud to collaborate on AI products and services, cloud communication, and smart retail[15](index=15&type=chunk) - Partnered with Huawei Ascend to jointly upgrade and iterate product versions, with data-related products already launched on Guangzhou and Shenzhen Data Exchanges[15](index=15&type=chunk) [Business Outlook](index=10&type=section&id=Business%20Outlook) For the second half of 2025, the company will continue to deepen its 'product standardization, refined operations, and business globalization' strategy, prioritizing profit to achieve high-quality development, focusing on enriching core product standardized components, strengthening key AI product operations, innovating AI+finance application scenarios, and emphasizing domestic and international ecosystem building to enhance market responsiveness - Deeply implement the 'AI+' initiative, with large models and AI agents fully integrating into the real economy[16](index=16&type=chunk) - In the second half of the year, the company will deepen its development goals of 'product standardization, refined operations, and business globalization', prioritizing profit to achieve high-quality development[16](index=16&type=chunk) [Enrich Core Product Standardized Components to Enhance Profit Margins](index=10&type=section&id=Enrich%20Core%20Product%20Standardized%20Components%20to%20Enhance%20Profit%20Margins) The company will focus on enhancing the standardization of core products across all business lines by extracting common requirements to create more standardized product components, coupled with standardized delivery processes, to optimize delivery cycles, reduce project costs, and increase profit margins, while also enriching the AI standard product matrix based on customer business scenario needs to achieve rapid product scaling - Focus on enhancing the standardization of core products across all business lines, creating more standardized product components to optimize delivery cycles, reduce project costs, and **increase profit margins**[16](index=16&type=chunk) - Continue to enrich the AI standard product matrix based on actual customer business scenario needs, aiming for rapid product scaling[16](index=16&type=chunk) [Strengthen Key AI Product Operations and Innovate AI+Finance Application Scenarios](index=10&type=section&id=Strengthen%20Key%20AI%20Product%20Operations%20and%20Innovate%20AI%2BFinance%20Application%20Scenarios) The company will strengthen market expansion and operations for key AI products like SKU Super Model and 'AI Reshoot Detective' to establish them as star AI products, while solidifying AI+consumer technology applications and developing AI product applications for the financial industry, including intelligent agent development, smart customer service optimization, and digital humans, to deepen customer cooperation - Strengthen market expansion and operations for key AI products such as **SKU Super Model** and **'AI Reshoot Detective'**, aiming to build them into the company's star AI products[17](index=17&type=chunk) - Leverage customer resources in the financial industry to develop AI product applications for the financial sector, including intelligent agent development, smart customer service optimization and upgrades, and digital humans[17](index=17&type=chunk) [Emphasize Domestic and International Ecosystem Building to Enhance Market Responsiveness](index=10&type=section&id=Emphasize%20Domestic%20and%20International%20Ecosystem%20Building%20to%20Enhance%20Market%20Responsiveness) The company will continue to build its ecosystem, maintaining close ties with upstream and downstream partners, strengthening interaction and cooperation with telecom operators, cloud vendors, and peers in the second half of the year to promote stable group business development, and plans to achieve localized operations in some overseas regions to deepen cooperation with resource providers and further expand customer base - Continuously build the ecosystem, strengthening interaction and cooperation with telecom operators, cloud vendors, and peers to promote stable group business development[18](index=18&type=chunk) - Plan to achieve localized operations in some overseas regions, deepening cooperation with resource providers and further expanding customer sources[18](index=18&type=chunk) [Management Discussion and Analysis](index=10&type=section&id=Management%20Discussion%20and%20Analysis) [Financial Overview](index=11&type=section&id=Financial%20Overview) This section analyzes the company's financial performance during the reporting period, with total revenue decreasing by 36.5% to RMB410.9 million due to domestic telecom industry regulatory policy adjustments, leading to a decline in both PaaS and SaaS revenues, but an increase in SaaS business's proportion and overall gross profit margin to 18.2%, while operating expenses decreased, and loss attributable to owners of the company expanded to RMB25.9 million - The Group's total revenue decreased by **36.5%** to **RMB410.9 million**, primarily due to adjustments in domestic telecom industry regulatory policies[19](index=19&type=chunk) - SaaS business accounted for **59.6%** of total revenue (H1 2024: 56.4%), while PaaS accounted for **40.4%** (H1 2024: 43.6%)[19](index=19&type=chunk) Segment Revenue Details (For the six months ended June 30) | Segment | 2025 (RMB'000) | 2025 (%) | 2024 (RMB'000) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | PaaS | 165,951 | 40.4 | 282,411 | 43.6 | | SaaS | 244,956 | 59.6 | 365,058 | 56.4 | | Total | 410,907 | 100.0 | 647,469 | 100.0 | Gross Profit and Gross Profit Margin (For the six months ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | 2025 Gross Profit Margin | 2024 Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | | Overall Gross Profit | 75,000 | 101,200 | 18.2% | 15.6% | | PaaS Gross Profit Margin | - | - | 6.0% | 6.0% | | SaaS Gross Profit Margin | - | - | 26.5% | 23.1% | - Loss attributable to owners of the company for the period was **RMB25.9 million**, an increase from **RMB6.4 million** in the same period of 2024, primarily due to increased telecom industry regulation leading to reduced sales of PaaS and some SaaS services[33](index=33&type=chunk) [Revenue](index=11&type=section&id=Revenue) The Group's revenue primarily derives from PaaS and SaaS operating segments, with total revenue decreasing by 36.5% to RMB410.9 million for the six months ended June 30, 2025, mainly due to domestic telecom industry regulatory policy adjustments, and SaaS revenue proportion increasing to 59.6% - The Group's revenue is derived from two operating segments, PaaS and SaaS, with SaaS being the larger segment, accounting for **59.6%**[19](index=19&type=chunk) Segment Revenue (For the six months ended June 30) | Segment | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | PaaS | 165,951 | 282,411 | | SaaS | 244,956 | 365,058 | | Total | 410,907 | 647,469 | - PaaS revenue decreased by **41.2%** to **RMB166.0 million**, primarily due to adjustments in domestic telecom industry regulatory policies[20](index=20&type=chunk) - SaaS revenue decreased by **32.9%** to **RMB245.0 million**, mainly due to the company's proactive reduction of loss-making projects[22](index=22&type=chunk) SaaS Revenue Breakdown (For the six months ended June 30) | Solution | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Marketing Cloud | 189,743 | 306,495 | | Sales Cloud | 28,590 | 43,061 | | Customer Service Cloud | 26,623 | 15,502 | | Total | 244,956 | 365,058 | [Cost of Sales](index=12&type=section&id=Cost%20of%20Sales) For the six months ended June 30, 2025, the Group's cost of sales decreased by 38.5% to RMB336.0 million, consistent with the reduction in PaaS and SaaS businesses, primarily due to lower telecom resources, labor, and outsourced implementation costs - The Group's cost of sales decreased by **38.5%** to **RMB336.0 million**, consistent with the reduction in PaaS and SaaS businesses[23](index=23&type=chunk) - PaaS cost of sales decreased by **41.2%** to **RMB156.0 million**, primarily due to lower telecom resource costs[23](index=23&type=chunk) - SaaS cost of sales decreased by **35.9%** to **RMB180.0 million**, primarily due to reduced telecom resource costs, labor costs, and outsourced implementation costs[23](index=23&type=chunk) [Gross Profit and Gross Profit Margin](index=13&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) For the six months ended June 30, 2025, the Group's overall gross profit decreased by 26.0% to RMB75.0 million, but the overall gross profit margin increased from 15.6% to 18.2%, with PaaS gross profit margin remaining at 6.0% and SaaS gross profit margin increasing to 26.5% due to improved profitability of the core SaaS business Gross Profit and Gross Profit Margin (For the six months ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | 2025 Gross Profit Margin | 2024 Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | | Overall Gross Profit | 75,000 | 101,200 | 18.2% | 15.6% | | PaaS Gross Profit Margin | - | - | 6.0% | 6.0% | | SaaS Gross Profit Margin | - | - | 26.5% | 23.1% | [Selling and Distribution Expenses](index=13&type=section&id=Selling%20and%20Distribution%20Expenses) For the six months ended June 30, 2025, selling and distribution expenses decreased by 2.1% to RMB48.8 million, primarily due to reduced business entertainment and travel expenses for sales and marketing personnel Selling and Distribution Expenses (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 48.8 | 49.9 | -2.1% | [Administrative Expenses](index=13&type=section&id=Administrative%20Expenses) For the six months ended June 30, 2025, administrative expenses decreased by 2.1% to RMB22.9 million, primarily due to reduced employee benefit expenses Administrative Expenses (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Administrative Expenses | 22.9 | 23.4 | -2.1% | [Research and Development Expenses](index=13&type=section&id=Research%20and%20Development%20Expenses) For the six months ended June 30, 2025, research and development expenses decreased by 12.8% to RMB28.6 million, primarily due to effective optimization of R&D processes and organization Research and Development Expenses (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Research and Development Expenses | 28.6 | 32.8 | -12.8% | [Net Impairment Loss on Financial Assets](index=13&type=section&id=Net%20Impairment%20Loss%20on%20Financial%20Assets) For the six months ended June 30, 2025, net impairment loss on financial assets slightly increased by 0.7% to RMB2.7 million Net Impairment Loss on Financial Assets (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Net Impairment Loss on Financial Assets | 2.7 | 2.7 | +0.7% | [Other Income](index=13&type=section&id=Other%20Income) For the six months ended June 30, 2025, other income decreased by 42.9% to RMB1.6 million, primarily due to reduced government grants and VAT refunds Other Income (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Other Income | 1.6 | 2.9 | -42.9% | [Finance Costs—Net](index=14&type=section&id=Finance%20Costs%E2%80%94Net) For the six months ended June 30, 2025, net finance costs were RMB2.1 million, an increase from RMB1.8 million in the same period of 2024 Finance Costs—Net (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Finance Costs—Net | 2.1 | 1.8 | [Income Tax Expense](index=14&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2025, income tax expense was RMB0.2 million, consistent with the same period in 2024 Income Tax Expense (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Income Tax Expense | 0.2 | 0.2 | [Loss Attributable to Owners of the Company for the Period](index=14&type=section&id=Loss%20Attributable%20to%20Owners%20of%20the%20Company%20for%20the%20Period) During the reporting period, the Group recorded a loss attributable to owners of the company of RMB25.9 million, an increase from RMB6.4 million in the same period of 2024, primarily due to increased telecom industry regulation leading to reduced sales of PaaS and some SaaS services in the first half of 2025 Loss Attributable to Owners of the Company (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Loss Attributable to Owners of the Company | 25.9 | 6.4 | - The expanded loss was primarily due to increased telecom industry regulation in the first half of 2025, leading to a corresponding reduction in PaaS and some SaaS sales[33](index=33&type=chunk) [Liquidity and Financial Resources](index=14&type=section&id=Liquidity%20and%20Financial%20Resources) This section outlines the company's liquidity and financial resources, noting an increase in cash and cash equivalents, a slight decrease in total debt but a slight increase in the gearing ratio, with no significant contingent liabilities, capital commitments, major investments, or M&A activities during the reporting period, and no assets pledged - The Group adopts prudent financial management policies, actively monitors its liquidity position, and maintains adequate financial resources[34](index=34&type=chunk) [Cash and Cash Equivalents](index=14&type=section&id=Cash%20and%20Cash%20Equivalents) As of June 30, 2025, the Group's cash and cash equivalents were RMB94.6 million, a 32.4% increase from RMB71.4 million as of December 31, 2024 Cash and Cash Equivalents | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 94.6 | 71.4 | +32.4% | [Indebtedness](index=15&type=section&id=Indebtedness) As of June 30, 2025, the Group's total borrowings were RMB143,619 thousand, lease liabilities were RMB7,320 thousand, and total indebtedness was RMB150,939 thousand, a slight decrease from the end of 2024 Debt Composition | Indicator | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Borrowings | 143,619 | 144,040 | | Lease Liabilities | 7,320 | 15,224 | | Total | 150,939 | 159,264 | [Contingent Liabilities](index=15&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities (December 31, 2024: nil)[37](index=37&type=chunk) [Capital Commitments](index=15&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group had no capital commitments - As of June 30, 2025, the Group had no capital commitments (December 31, 2024: nil)[38](index=38&type=chunk) [Gearing Ratio](index=15&type=section&id=Gearing%20Ratio) As of June 30, 2025, the Group's gearing ratio was 50.4%, a slight increase from 48.5% at the end of 2024 Gearing Ratio | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing Ratio | 50.4% | 48.5% | [Exchange Rate Fluctuation Risk](index=15&type=section&id=Exchange%20Rate%20Fluctuation%20Risk) The Group primarily conducts business in RMB and had no significant non-RMB assets or liabilities as of June 30, 2025, nor had it entered into any forward foreign exchange contracts to hedge foreign exchange risk - The Group primarily operates in RMB, has no significant non-RMB assets or liabilities, and has not entered into any forward foreign exchange contracts to hedge foreign exchange risk[40](index=40&type=chunk) [Material Investments](index=15&type=section&id=Material%20Investments) During the reporting period, the Group did not make any material investments - During the reporting period, the Group did not make any material investments[41](index=41&type=chunk) [Material Acquisitions and Disposals](index=16&type=section&id=Material%20Acquisitions%20and%20Disposals) During the reporting period, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures[42](index=42&type=chunk) [Pledge of Assets](index=16&type=section&id=Pledge%20of%20Assets) As of June 30, 2025, the Group had not pledged any of its assets - As of June 30, 2025, the Group had not pledged any of its assets (December 31, 2024: nil)[43](index=43&type=chunk) [Plans for Future Material Investments and Capital Assets](index=16&type=section&id=Plans%20for%20Future%20Material%20Investments%20and%20Capital%20Assets) As of June 30, 2025, the Group had no plans for future material investments and capital assets other than those disclosed in this report, but will continue to seek investment opportunities that align with the overall interests of shareholders - As of June 30, 2025, the Group had no plans for future material investments and capital assets other than those disclosed in this report[44](index=44&type=chunk) - The Group will continue to seek investment opportunities that align with the overall interests of shareholders[44](index=44&type=chunk) [Other Information](index=17&type=section&id=Other%20Information) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company or its Associated Corporations](index=17&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20or%20its%20Associated%20Corporations) This section discloses the interests of the company's directors and chief executive in the shares, underlying shares, and debentures of the company or its associated corporations as of June 30, 2025, with Mr. Chen Yonghui, Mr. Huang Fangjie, and Mr. Li Hairong, as parties acting in concert, collectively holding 53.35% of the share interests, and Mr. Guo Haiqiu holding 2.41% Directors' and Chief Executive's Share Interests | Director's Name | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | | Mr. Chen Yonghui | Interest in controlled corporation and parties acting in concert | 298,932,230 | 53.35% | | Mr. Huang Fangjie | Interest in controlled corporation and parties acting in concert | 298,932,230 | 53.35% | | Mr. Li Hairong | Interest in controlled corporation and parties acting in concert | 298,932,230 | 53.35% | | Mr. Guo Haiqiu | Interest in controlled corporation | 13,500,000 | 2.41% | - Mr. Chen Yonghui, Mr. Huang Fangjie, and Mr. Li Hairong are parties acting in concert with each other[47](index=47&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares of the Company](index=19&type=section&id=Substantial%20Shareholders'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) This section discloses the interests of substantial shareholders in the company's shares and underlying shares as of June 30, 2025, with Zhenghao Global, Honghan Global, and Shangying Global holding 18.02%, 11.83%, and 10.67% of shares respectively, Baoya Group Holdings Limited and its controlled person Mr. Song Xiaohu holding 9.53%, and Guangzhou Xuandong and its controlled person Ms. Ge Ping holding 5.62% Substantial Shareholders' Share Interests | Shareholder Name/Name | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | | Zhenghao Global | Beneficial owner | 100,968,000 | 18.02% | | Honghan Global | Beneficial owner | 66,311,770 | 11.83% | | Shangying Global | Beneficial owner | 55,542,460 | 10.67% | | Baoya Group Holdings Limited | Beneficial owner | 53,417,170 | 9.53% | | Mr. Song Xiaohu | Interest in controlled corporation | 53,417,170 | 9.53% | | Guangzhou Xuandong | Beneficial owner | 31,500,000 | 5.62% | | Ms. Ge Ping | Interest in controlled corporation | 31,500,000 | 5.62% | [Use of Proceeds from Global Offering](index=20&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) This section details the use of net proceeds of approximately HKD163.3 million from the company's global offering, with most funds utilized as described in the prospectus, including for enhancing aPaaS and cPaaS platforms, developing DI capabilities, improving AI capabilities, strengthening SaaS solutions, increasing sales and marketing capabilities, and working capital, while HKD16.4 million remains unutilized under strategic investments and acquisitions - Net proceeds from the global offering of approximately **HKD163.3 million** have been and are intended to be used in the manner set out in the prospectus[51](index=51&type=chunk) Status of Use of Net Proceeds from Global Offering (As of June 30, 2025) | Item | Net Proceeds (HKD million) | Utilized as of June 30, 2025 (HKD million) | Unutilized as of June 30, 2025 (HKD million) | | :--- | :--- | :--- | :--- | | Enhance aPaaS and cPaaS platforms | 13.2 | 13.2 | 0.0 | | Develop DI capabilities | 5.6 | 5.6 | 0.0 | | Improve AI capabilities | 5.6 | 5.6 | 0.0 | | Provide omni-channel marketing cloud solutions | 25.4 | 25.4 | 0.0 | | Strengthen sales cloud solutions | 28.5 | 28.5 | 0.0 | | Consolidate customer service cloud solutions | 11.4 | 11.4 | 0.0 | | Enhance brand in finance, government & enterprise, and internet industries | 24.5 | 24.5 | 0.0 | | Promote brand in large consumer, retail, and healthcare industries and establish relevant industry research institutions | 4.9 | 4.9 | 0.0 | | Expand sales and after-sales service teams | 19.6 | 19.6 | 0.0 | | Strategic investments and acquisitions | 16.4 | 0.0 | 16.4 | | Working capital and general corporate purposes | 8.2 | 8.2 | 0.0 | | Total | 163.3 | 146.9 | 16.4 | - The Board will continue to evaluate the plan for utilizing the unutilized net proceeds and may revise it based on market conditions and business development needs[53](index=53&type=chunk) [Share Award Scheme](index=21&type=section&id=Share%20Award%20Scheme) The company adopted the 2022 Restricted Share Award Scheme on December 1, 2022, to incentivize and retain core employees, with the trustee holding 21,894,000 awarded shares and 48,453,050 shares available for grant as of June 30, 2025, and the scheme having a validity period of approximately seven years and three months, with vesting, lapse, and cancellation changes for awarded shares of Mr. Li Hairong and Group employees during the reporting period - The 2022 Restricted Share Award Scheme aims to provide selected participants with opportunities to acquire ownership interests in the company, encouraging and retaining them to serve the Group[54](index=54&type=chunk) - As of June 30, 2025, the total number of awarded shares held by the trustee under the scheme was **21,894,000 shares**[54](index=54&type=chunk) - As of June 30, 2025, the number of awarded shares available for grant under the 2022 Restricted Share Award Scheme was **48,453,050 shares**[54](index=54&type=chunk) Details of Changes in 2022 Restricted Share Award Scheme (As of June 30, 2025) | Category/Name of Grantee | Grant Date | Closing Price Immediately Before Grant Date (HKD) | Awarded Shares Not Yet Vested as of January 1, 2025 | Vested | Lapsed | Cancelled | Awarded Shares Not Yet Vested as of June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Mr. Li Hairong | September 27, 2024 | 0.66 | 390,000 | — | — | — | 390,000 | | Group Employees | January 6, 2023 | 3.00 | 3,108,000 | 1,257,000 | 241,000 | — | 1,610,000 | | Group Employees | September 27, 2024 | 0.66 | 3,028,000 | — | 113,000 | — | 2,915,000 | | Total | - | - | 6,526,000 | 1,257,000 | 354,000 | — | 4,915,000 | [Employee Remuneration and Employment Relationship](index=23&type=section&id=Employee%20Remuneration%20and%20Employment%20Relationship) As of June 30, 2025, the Group had 609 employees, with total employee costs of RMB86.1 million, a decrease from the same period last year, and the company offers competitive remuneration, bonuses, and share-based compensation, along with comprehensive training programs to maintain staff quality - As of June 30, 2025, the Group had **609 employees**[59](index=59&type=chunk) Total Employee Costs (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Total Employee Costs | 86.1 | 98.3 | - The company provides employees with competitive remuneration, bonuses, and share-based compensation, along with comprehensive training programs[59](index=59&type=chunk) [Changes in Directors' Biographical Details as Required by Rule 13.51B(1) of the Listing Rules](index=23&type=section&id=Changes%20in%20Directors'%20Biographical%20Details%20as%20Required%20by%20Rule%2013.51B(1)%20of%20the%20Listing%20Rules) From the publication date of the 2024 annual report until the date of this report, there were no changes in directors' biographical details requiring disclosure under Rule 13.51B(1) of the Listing Rules - From the publication date of the 2024 annual report until the date of this report, there were no changes in directors' biographical details requiring disclosure under Rule 13.51B(1) of the Listing Rules[60](index=60&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=24&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted the Model Code as the code of conduct for directors' securities transactions, and all directors confirmed strict compliance with the code during the reporting period after inquiry - The company has adopted the Model Code as the code of conduct for directors' securities transactions, and all directors confirmed strict compliance during the reporting period[62](index=62&type=chunk) [Compliance with the Corporate Governance Code](index=24&type=section&id=Compliance%20with%20the%20Corporate%20Governance%20Code) The company complied with all applicable Corporate Governance Code provisions during the reporting period, except for a deviation from Code Provision C.2.1 (roles of Chairman and Chief Executive should be separate), as the Board believes Mr. Chen Yonghui's dual role benefits business prospects and operational efficiency, with sufficient safeguards to ensure power balance within the Board - The company complied with all applicable Corporate Governance Code provisions, except for a deviation from Code Provision C.2.1 (roles of Chairman and Chief Executive should be separate)[63](index=63&type=chunk) - The Board believes that Mr. Chen Yonghui's dual role as Chairman and Chief Executive Officer benefits business prospects and operational efficiency, with three independent non-executive directors providing independent insights to ensure power balance[63](index=63&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=24&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) The company repurchased 376,000 shares for a total consideration of HKD357,013.14 during the reporting period under the repurchase mandate, holding them as treasury shares, with a total of 422,500 shares repurchased for HKD408,033.53 up to the date of this report, and neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities during the reporting period - The Directors have been granted a general mandate to repurchase shares not exceeding **10%** of the total issued shares[64](index=64&type=chunk) Share Repurchase Details (During the Reporting Period up to the Date of this Report) | Repurchase Month | Number of Shares Repurchased | Total Consideration Paid (HKD) | | :--- | :--- | :--- | | January 2025 | 99,000 | 86,072.23 | | February 2025 | 30,500 | 32,042.69 | | March 2025 | — | — | | April 2025 | 87,000 | 81,907.86 | | May 2025 | 69,500 | 65,438.47 | | June 2025 | 90,000 | 91,551.89 | | July 2025 | 46,500 | 51,020.39 | | August 2025 (up to the Latest Practicable Date) | — | — | | Total | 422,500 | 408,033.53 | - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[66](index=66&type=chunk) [Interim Dividend](index=25&type=section&id=Interim%20Dividend) The Board does not recommend the payment of an interim dividend for the reporting period - The Board does not recommend the payment of an interim dividend for the reporting period (for the six months ended June 30, 2024: nil)[67](index=67&type=chunk) [Audit Committee](index=25&type=section&id=Audit%20Committee) The Audit Committee has reviewed the Group's unaudited condensed consolidated interim results for the reporting period and is satisfied that they have been prepared in accordance with applicable accounting standards and the Listing Rules, with adequate disclosures and no objections to the accounting treatment - The Audit Committee has reviewed the Group's unaudited condensed consolidated interim results and is satisfied that they have been prepared in accordance with applicable accounting standards and the Listing Rules, with adequate disclosures and no objections to the accounting treatment[68](index=68&type=chunk) [Contractual Arrangements](index=26&type=section&id=Contractual%20Arrangements) The Board has reviewed the Group's overall performance under the contractual arrangements and believes that the Group has complied in all material respects with the contractual arrangements disclosed in the prospectus and the Foreign Investment Law of the People's Republic of China, with no updates to contractual arrangements or qualification requirements, nor any new contractual arrangements entered into, renewed, or re-entered into during the reporting period - The Board has reviewed the Group's overall performance under the contractual arrangements and believes that it has complied with the contractual arrangements disclosed in the prospectus and the Foreign Investment Law of the People's Republic of China in all material respects[69](index=69&type=chunk) - During the reporting period, there were no updates to contractual arrangements or qualification requirements, nor any new contractual arrangements entered into, renewed, or re-entered into[69](index=69&type=chunk) [Events After the Reporting Period](index=26&type=section&id=Events%20After%20the%20Reporting%20Period) No significant events affecting the Group occurred from the end of the reporting period up to the date of this report - No significant events affecting the Group occurred from the end of the reporting period up to the date of this report[70](index=70&type=chunk) [Condensed Consolidated Interim Statement of Comprehensive Income](index=26&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Comprehensive%20Income) [Details of Condensed Consolidated Interim Statement of Comprehensive Income](index=26&type=section&id=Details%20of%20Condensed%20Consolidated%20Interim%20Statement%20of%20Comprehensive%20Income) This table presents the condensed consolidated interim statement of comprehensive income for the six months ended June 30, 2025, and the corresponding period in 2024, detailing revenue, cost of sales, gross profit, various operating expenses, net impairment loss on financial assets, other income, net finance costs, income tax expense, and loss and total comprehensive loss for the period Condensed Consolidated Interim Statement of Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Revenue | 410,907 | 647,469 | | Cost of Sales | (335,957) | (546,220) | | Gross Profit | 74,950 | 101,249 | | Selling and Distribution Expenses | (48,789) | (49,854) | | Administrative Expenses | (22,853) | (23,353) | | Research and Development Expenses | (28,598) | (32,790) | | Net Impairment Loss on Financial Assets | (2,744) | (2,726) | | Other Income | 1,636 | 2,867 | | Other (Losses)/Gains — Net | (570) | 501 | | Operating Loss | (26,968) | (4,106) | | Finance Income | 101 | 578 | | Finance Costs | (2,217) | (2,384) | | Finance Costs — Net | (2,116) | (1,806) | | Loss Before Income Tax | (29,084) | (5,912) | | Income Tax Expense | (154) | (228) | | Loss and Total Comprehensive Loss for the Period | (29,238) | (6,140) | | Loss Attributable to Owners of the Company | (25,874) | (6,444) | | Non-controlling Interests | (3,364) | 304 | | Basic and Diluted Loss Per Share | (0.048) | (0.012) | [Condensed Consolidated Interim Statement of Financial Position](index=27&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) [Details of Condensed Consolidated Interim Statement of Financial Position](index=27&type=section&id=Details%20of%20Condensed%20Consolidated%20Interim%20Statement%20of%20Financial%20Position) This table presents the condensed consolidated interim statement of financial position as of June 30, 2025, and December 31, 2024, detailing non-current assets, current assets, total assets, equity attributable to owners of the company, non-controlling interests, total equity, non-current liabilities, current liabilities, and total liabilities Condensed Consolidated Interim Statement of Financial Position | Indicator | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 32,569 | 39,765 | | Current Assets | 592,173 | 594,043 | | **Total Assets** | **624,742** | **633,808** | | **Equity** | | | | Equity Attributable to Owners of the Company | 306,665 | 331,621 | | Non-controlling Interests | (7,196) | (3,552) | | **Total Equity** | **299,469** | **328,069** | | **Liabilities** | | | | Non-current Liabilities | 2,137 | 8,026 | | Current Liabilities | 323,136 | 297,713 | | **Total Liabilities** | **325,273** | **305,739** | | **Total Equity and Liabilities** | **624,742** | **633,808** | [Condensed Consolidated Interim Statement of Changes in Equity](index=29&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Changes%20in%20Equity) [Details of Condensed Consolidated Interim Statement of Changes in Equity](index=29&type=section&id=Details%20of%20Condensed%20Consolidated%20Interim%20Statement%20of%20Changes%20in%20Equity) This table presents the condensed consolidated interim statement of changes in equity for the six months ended June 30, 2025, and the corresponding period in 2024, including opening balances, loss for the period, share-based payments, share exercises, share repurchases, non-controlling interest contributions, and dividends, across share capital, share premium, other reserves, accumulated losses, non-controlling interests, and total equity Condensed Consolidated Interim Statement of Changes in Equity (For the six months ended June 30, 2025) | Indicator | Share Capital (RMB'000) | Share Premium (RMB'000) | Other Reserves (RMB'000) | Accumulated Losses (RMB'000) | Total (RMB'000) | Non-controlling Interests (RMB'000) | Total Equity (RMB'000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Balance as of January 1, 2025 | 360 | 440,616 | (40,411) | (68,944) | 331,621 | (3,552) | 328,069 | | Loss for the period | — | — | — | (25,874) | (25,874) | (3,364) | (29,238) | | Share-based payments | — | — | 516 | — | 516 | — | 516 | | Exercise of shares related to employee share scheme | — | 1,121 | (390) | — | 731 | — | 731 | | Share repurchase | — | — | (329) | — | (329) | — | (329) | | Transactions with non-controlling interests - capital contribution | — | — | — | — | — | 20 | 20 | | Transactions with non-controlling interests - dividends | — | — | — | — | — | (300) | (300) | | Balance as of June 30, 2025 | 360 | 441,737 | (40,614) | (94,818) | 306,665 | (7,196) | 299,469 | Condensed Consolidated Interim Statement of Changes in Equity (For the six months ended June 30, 2024) | Indicator | Share Capital (RMB'000) | Share Premium (RMB'000) | Other Reserves (RMB'000) | Accumulated Losses (RMB'000) | Total (RMB'000) | Non-controlling Interests (RMB'000) | Total Equity (RMB'000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Balance as of January 1, 2024 | 360 | 439,569 | (31,474) | (72,490) | 335,965 | 3,055 | 339,020 | | Loss for the period | — | — | — | (6,444) | (6,444) | 304 | (6,140) | | Share-based payments | — | — | 1,176 | — | 1,176 | — | 1,176 | | Purchase of shares related to employee share scheme | — | — | (8,308) | — | (8,308) | — | (8,308) | | Exercise of shares related to employee share scheme | — | 1,047 | (242) | — | 805 | — | 805 | | Balance as of June 30, 2024 | 360 | 440,616 | (38,848) | (78,934) | 323,194 | 3,359 | 326,553 | [Condensed Consolidated Interim Statement of Cash Flows](index=31&type=section&id=Condensed%20Consolidated%20Interim%20Statement%20of%20Cash%20Flows) [Details of Condensed Consolidated Interim Statement of Cash Flows](index=31&type=section&id=Details%20of%20Condensed%20Consolidated%20Interim%20Statement%20of%20Cash%20Flows) This table presents the condensed consolidated interim statement of cash flows for the six months ended June 30, 2025, and the corresponding period in 2024, detailing net cash flows from operating, investing, and financing activities, as well as the net increase/(decrease) in cash and cash equivalents and their period-end balances Condensed Consolidated Interim Statement of Cash Flows (For the six months ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Net Cash From/(Used In) Operating Activities | 30,779 | (74,110) | | Net Cash Used In Investing Activities | (162) | (9,487) | | Net Cash Used In Financing Activities | (7,402) | (14,643) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 23,215 | (98,240) | | Cash and Cash Equivalents at Beginning of Period | 71,413 | 192,278 | | Cash and Cash Equivalents at End of Period | 94,561 | 94,074 | [Notes to the Condensed Consolidated Interim Financial Information](index=33&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) [1 General Information](index=33&type=section&id=1%20General%20Information) This section provides basic company information, including its registration location, principal business activities, ultimate controlling shareholders, and ultimate holding company, noting its primary engagement in providing smart customer relationship management (CRM) services in the People's Republic of China - Xuanwu Cloud Technology Holdings Limited was incorporated in the Cayman Islands on **April 26, 2021**[83](index=83&type=chunk) - The Group is principally engaged in providing smart customer relationship management (CRM) services in the People's Republic of China[83](index=83&type=chunk) - The ultimate controlling shareholders are Mr. Chen Yonghui, Mr. Huang Fangjie, and Mr. Li Hairong, who have entered into an agreement to act in concert with each other[83](index=83&type=chunk) [2 Basis of Preparation](index=33&type=section&id=2%20Basis%20of%20Preparation) This condensed consolidated interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting', is unaudited, and should be read in conjunction with the financial statements for the year ended December 31, 2024 - This condensed consolidated interim financial information has been prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting'[86](index=86&type=chunk) - This condensed consolidated interim financial information is unaudited and should be read in conjunction with the financial statements for the year ended December 31, 2024[85](index=85&type=chunk)[86](index=86&type=chunk) [3 Accounting Policies](index=34&type=section&id=3%20Accounting%20Policies) This section describes the accounting policies adopted by the Group, which are consistent with those applied in the preparation of the financial statements for the year ended December 31, 2024, except for the adoption of new and revised standards, none of which have had a significant impact on the condensed consolidated interim financial information, nor are new standards not yet effective expected to have a material impact - The accounting policies applied are consistent with those applied in the preparation of the Group's financial statements for the year ended December 31, 2024, except for the adoption of new and revised standards[87](index=87&type=chunk) - The adoption of new and revised standards (such as amendments to HKAS 21 and HKFRS 1) had no significant impact on the Group's condensed consolidated interim financial information[87](index=87&type=chunk) - New standards and amendments not yet effective (such as amendments to HKFRS 18 and HKFRS 19) are not expected to have a significant impact on the Group's condensed consolidated interim financial information[88](index=88&type=chunk) [4 Critical Accounting Estimates and Judgements](index=35&type=section&id=4%20Critical%20Accounting%20Estimates%20and%20Judgements) This section highlights that the preparation of interim financial information requires management to make judgments, estimates, and assumptions affecting the application of accounting policies and the amounts reported in the financial statements, and actual results may differ from these estimates, with the primary sources of estimation uncertainty being the same as those applied in the financial statements for the year ended December 31, 2024 - In preparing the interim financial information, management is required to make judgments, estimates, and assumptions that affect the application of accounting policies and the amounts reported in the financial statements[89](index=89&type=chunk) - The key judgments and major sources of estimation uncertainty are the same as those applied in the Group's financial statements for the year ended December 31, 2024[89](index=89&type=chunk) [5 Financial Risk Management](index=35&type=section&id=5%20Financial%20Risk%20Management) The Group is exposed to market risks (including foreign exchange risk, price risk, cash flow and fair value interest rate risk), credit risk, and liquidity risk, and this interim financial information does not include all financial risk management information required in annual financial statements, with no changes in risk management department or policies since the year-end - The Group is exposed to market risks (including foreign exchange risk, price risk, cash flow and fair value interest rate risk), credit risk, and liquidity risk[90](index=90&type=chunk) - There have been no changes in the risk management department or risk management policies since the year-end[91](index=91&type=chunk) [6 Segment Information](index=36&type=section&id=6%20Segment%20Information) The Group's operating segments are divided into CRM PaaS services and CRM SaaS services, with the chief operating decision maker assessing performance based on gross profit for each segment, reporting PaaS revenue of RMB165,951 thousand and SaaS revenue of RMB244,956 thousand for the six months ended June 30, 2025, and SaaS gross profit of RMB64,999 thousand and PaaS gross profit of RMB9,951 thousand - The Group's operating segments are CRM PaaS services and CRM SaaS services[93](index=93&type=chunk)[94](index=94&type=chunk) - The chief operating decision maker assesses the performance of the operating segments based on their gross profit[94](index=94&type=chunk) Segment Performance (For the six months ended June 30, 2025) | Segment | Revenue (RMB'000) | Cost of Sales (RMB'000) | Gross Profit (RMB'000) | | :--- | :--- | :--- | :--- | | PaaS | 165,951 | (156,000) | 9,951 | | SaaS | 244,956 | (179,957) | 64,999 | | Total | 410,907 | (335,957) | 74,950 | Segment Performance (For the six months ended June 30, 2024) | Segment | Revenue (RMB'000) | Cost of Sales (RMB'000) | Gross Profit (RMB'000) | | :--- | :--- | :--- | :--- | | PaaS | 282,411 | (265,456) | 16,955 | | SaaS | 365,058 | (280,764) | 84,294 | | Total | 647,469 | (546,220) | 101,249 | [7 Revenue](index=39&type=section&id=7%20Revenue) The Group's revenue primarily comprises proceeds from providing PaaS and SaaS, with PaaS revenue of RMB165,951 thousand and SaaS revenue of RMB244,956 thousand for the six months ended June 30, 2025, and most revenue recognized at a point in time, with contract liabilities of RMB62,158 thousand - Revenue primarily comprises proceeds from providing PaaS and SaaS[98](index=98&type=chunk) Revenue by Category (For the six months ended June 30) | Category | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | PaaS | 165,951 | 282,411 | | SaaS | 244,956 | 365,058 | | Total | 410,907 | 647,469 | Revenue by Recognition Timing (For the six months ended June 30) | Recognition Timing | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | At a point in time | 390,237 | 629,875 | | Over time | 20,670 | 17,594 | | Total | 410,907 | 647,469 | Contract Liabilities | Indicator | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Contract Liabilities | 62,158 | 37,535 | [8 Expenses by Nature](index=40&type=section&id=8%20Expenses%20by%20Nature) This section details expenses included in cost of sales, selling and distribution expenses, research and development expenses, and administrative expenses, with total expenses of RMB436,197 thousand for the six months ended June 30, 2025, and telecom resource costs being the largest component at RMB321,281 thousand Expenses by Nature (For the six months ended June 30) | Expense Category | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Telecom resource costs | 321,281 | 516,683 | | Employee benefit expenses | 86,137 | 98,332 | | Travel and entertainment expenses | 6,536 | 8,284 | | Outsourced customer service expenses | 5,746 | 5,590 | | Depreciation and amortization expenses | 4,724 | 4,984 | | Infrastructure and equipment expenses | 3,916 | 3,542 | | Professional service fees | 3,294 | 2,711 | | Marketing and promotion expenses | 929 | 1,383 | | Taxes and other levies | 837 | 1,219 | | Conference and office expenses | 653 | 914 | | Outsourced implementation costs | 330 | 5,751 | | Lease payments for short-term leases | 240 | 246 | | Auditor's remuneration | 75 | 9 | | Others | 1,499 | 2,569 | | Total | 436,197 | 652,217 | [9 Employee Benefit Expenses](index=41&type=section&id=9%20Employee%20Benefit%20Expenses) For the six months ended June 30, 2025, total employee benefit expenses were RMB86,137 thousand, a decrease from the same period last year, comprising RMB75,730 thousand for salaries, wages, and bonuses, RMB9,891 thousand for social insurance and other employee benefits, and RMB516 thousand for share-based payments Employee Benefit Expenses (For the six months ended June 30) | Expense Category | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Salaries, wages and bonuses | 75,730 | 85,592 | | Social insurance expenses, housing benefits and other employee benefits | 9,891 | 11,564 | | Share-based payments | 516 | 1,176 | | Total | 86,137 | 98,332 | - Employees of the Group's PRC subsidiaries participate in defined contribution retirement schemes, contributing a certain percentage of their salaries[101](index=101&type=chunk) [10 Other Income](index=41&type=section&id=10%20Other%20Income) For the six months ended June 30, 2025, other income was RMB1,636 thousand, a decrease from RMB2,867 thousand in the same period last year, primarily due to reduced government grants and VAT refunds Other Income (For the six months ended June 30) | Income Category | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | VAT refunds | 1,294 | 1,505 | | Government grants | 123 | 1,123 | | Others | 219 | 239 | | Total | 1,636 | 2,867 | - VAT refund policy allows software enterprises to enjoy VAT refunds for the portion of actual tax burden exceeding **3%** of sales when selling self-developed software[104](index=104&type=chunk) - Government grants primarily include growth incentives for first-time transition from below-scale to above-scale enterprises in Guangzhou Development Zone (Huangpu District) and subsidies for promoting high-quality development of commercial services in Guangzhou City[104](index=104&type=chunk) [11 Other (Losses)/Gains — Net](index=42&type=section&id=11%20Other%20(Losses)%2FGains%20%E2%80%94%20Net) For the six months ended June 30, 2025, other net losses were RMB570 thousand, compared to net gains of RMB501 thousand in the same period of 2024, primarily comprising net loss on disposal of property, plant and equipment, fair value gains on financial assets, and foreign exchange losses Other (Losses)/Gains — Net (For the six months ended June 30) | Category | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Net loss on disposal of property, plant and equipment | (2) | (1) | | Net fair value gains on financial assets at fair value through profit or loss | 276 | 513 | | Net foreign exchange (losses)/gains | (67) | 36 | | Others | (777) | (47) | | Total | (570) | 501 | [12 Finance Costs — Net](index=43&type=section&id=12%20Finance%20Costs%20%E2%80%94%20Net) For the six months ended June 30, 2025, net finance costs were RMB2,116 thousand, an increase from RMB1,806 thousand in the same period of 2024, primarily consisting of interest expense on borrowings Finance Costs — Net (For the six months ended June 30) | Category | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Finance income - interest income from bank deposits | 101 | 578 | | Finance costs - interest expense on lease liabilities | (91) | (250) | | Finance costs - interest expense on borrowings | (2,126) | (2,134) | | Finance Costs — Net | (2,116) | (1,806) | [13 Income T

Core Insights - The AI industry is transitioning from "technology showcase" to "value creation" by 2025, with a focus on application-driven solutions rather than just model hype [1] - Xuanwu Cloud (02392) demonstrates how AI+SaaS can empower vertical industries through its recent mid-year performance report [1] Financial Performance - Xuanwu Cloud achieved total revenue of 410 million RMB, with the SaaS segment contributing 240 million RMB, accounting for 59.6% of total revenue, indicating a continuous optimization of business structure [2] - The overall gross margin improved to 18.2%, a year-on-year increase of 2.6 percentage points, reflecting enhanced operational quality [2] - The company served 2,351 clients across various sectors, with core client revenue contributing 95.0% of total revenue, showcasing strong customer retention and value enhancement capabilities [2] AI and SaaS Integration - The integration of AI technology has driven high-quality growth in the SaaS business, with significant advancements in large model technologies like DeepSeek [3] - Xuanwu Cloud has been proactive in developing proprietary AI technologies since 2016, leading to substantial growth in AI-related contracts and repeat purchases from clients [3][4] Product Development and Innovation - The company has launched several innovative applications targeting specific industry needs, such as the SKU supermodel for beverages and the "AI Detective" for the milk powder sector [4] - Xuanwu Cloud's AI capabilities are evolving from customized projects to reusable standard products, enhancing scalability [4] Strategic Partnerships and Market Expansion - Xuanwu Cloud has established a robust ecosystem for both domestic and international markets, with significant growth in overseas SMS business, exceeding last year's total volume by over 150% [6] - Strategic collaborations with Tencent Cloud and Huawei Ascend are aimed at enhancing product offerings and technical competitiveness [6] Future Outlook - The company is positioned at a critical growth juncture, with expectations of overall gross margin reaching around 20% and continued positive operating cash flow [7] - The overseas communication business is projected to maintain strong growth, with an anticipated annual growth rate exceeding 100% [7]

Core Insights - The AI industry is transitioning from "technology showcase" to "value creation" by 2025, with a focus on application-driven solutions rather than just model hype [1] - Xuanwu Cloud (02392) demonstrates how AI+SaaS can empower vertical industries through its mid-year performance report, showcasing improved gross margins and positive operating cash flow [1][2] Business Performance - Xuanwu Cloud achieved total revenue of 410 million RMB, with the SaaS segment generating 240 million RMB, accounting for 59.6% of total revenue, indicating a successful strategic focus [2] - The gross margin for the SaaS segment increased to 26.5%, contributing to an overall gross margin of 18.2%, up 2.6 percentage points year-on-year, reflecting improved operational quality [2] - The company served 2,351 clients across various sectors, with core client revenue accounting for 95.0% and an average revenue per user (ARPU) of 1.3 million RMB, demonstrating strong customer loyalty [2] AI and SaaS Integration - The integration of AI technology is driving high-quality growth in the SaaS sector, with significant advancements in large model technologies enhancing AI's operational capabilities [3] - Xuanwu Cloud has been proactive in developing proprietary AI technologies since 2016, launching various AI products tailored to specific industry needs, resulting in substantial growth in AI-related contracts [3][4] Product Development - The company has introduced innovative applications such as the SKU supermodel for the beverage and liquor industries and the "AI Detective" for the milk powder sector, addressing industry pain points [4] - Xuanwu Cloud's AI standard product offerings have expanded, with a total of 12 AI products now available, indicating a shift from customized projects to reusable standard products [4] Strategic Partnerships and Market Expansion - Xuanwu Cloud is expanding its market presence through strategic partnerships, including collaborations with Tencent Cloud and Huawei, enhancing its technological competitiveness [6] - The company's overseas communication business has seen significant growth, with a 150% increase in SMS business volume compared to the previous year, supported by partnerships with major telecom operators [6] Future Outlook - The company is positioned for substantial growth, with expectations of an overall gross margin increase to around 20% and continued positive operating cash flow [7] - The overseas communication business is projected to maintain strong growth, with an anticipated annual growth rate exceeding 100% as the company expands into new regions [7]

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8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: 玄武雲科技控股有限公司 呈交日期: 2025年9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) | 02392 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 1,000,000,000 | USD | | 0.0001 | USD | | 100,000 | | 增加 / 減少 (-) | | | | | | | USD | | | | 本月底結存 | | | 1,000,000,000 | USD | | 0.0001 | USD | | 100,000 | 本月底法定/註冊股本總 ...

Core Viewpoint - Xuanwu Cloud (02392) aims to enhance overall profitability and achieve sustainable, high-quality development by focusing on AI + SaaS high-margin businesses and strengthening its domestic and international ecosystem [1] Financial Performance - For the reporting period, Xuanwu Cloud achieved revenue of 410 million, with a gross margin of 18.2%, an increase of 2.6 percentage points year-on-year [1] - The SaaS segment generated revenue of 240 million, accounting for 59.6% of total revenue [1] - The company reported a positive operating cash flow for the first half of 2025 due to prudent financial controls and improved cash flow management [1][4] AI Business Growth - Xuanwu Cloud's AI-related contracts saw significant growth in the first half of the year, with expectations for continued positive trends in AI business contracts and customer expansion throughout the year [1][3] - The company has been developing AI technology since 2016 and has launched AI Agent products in the consumer goods and financial sectors, validating customer willingness to pay through repeat purchases [3] SaaS Margin Improvement - The gross margin for the SaaS segment increased to 26.5%, with overall gross margin expected to reach around 20% for the full year [3] - The company plans to reduce delivery implementation costs through product standardization and by minimizing losses from customized SaaS projects [3] Overseas Communication Business - Xuanwu Cloud's overseas communication business volume exceeded last year's total by over 150%, with revenue close to 7 million [5] - The company has established deep partnerships with major domestic operators and local leading operators in Southeast Asia and East Asia, laying a foundation for localized operations [5] - The overseas communication business is expected to grow by over 100% for the full year [5]

Core Insights - Xuanwu Cloud (02392) reported a revenue of 410 million yuan for the first half of 2025, with the SaaS segment contributing 240 million yuan, accounting for 59.6% of total revenue [1] - The company achieved positive operating cash flow in the first half of 2025 due to strict financial controls and improved cash flow management [1] Customer Service and Client Base - Xuanwu Cloud served a total of 2,351 clients across four major industries: finance, fast-moving consumer goods, government enterprises, and TMT, with core clients contributing 95.0% of total client revenue [1] - The SaaS segment had 1,558 clients, with an average revenue per user (ARPU) of 1.1 million yuan [1] Product Development and Innovation - The company enhanced its AI + SaaS product capabilities, particularly in its sales cloud, which saw updates to existing features and the introduction of new components like "super forms" and "surveys" [2] - Xuanwu Cloud upgraded its Smart U Customer product for the durable consumer goods sector, leveraging Huawei's Ascend and DeepSeek open-source models, and launched multilingual versions to improve global marketing efficiency [2] AI Product Expansion - The company developed new AI applications tailored to the consumer goods sector, including the SKU Super Model for beverage and liquor industries and the unique "AI Photo Detective" model for the milk powder sector [3] - Xuanwu Cloud's AI standard products now include features for detecting empty displays and layered inspections, increasing the number of standard products to 12 [3] - The company created multiple AI assistants on its low-code platform, aimed at enhancing internal development and market insights [3] International Expansion and Strategic Partnerships - Xuanwu Cloud's overseas cloud communication business experienced rapid growth, expanding its service areas to Southeast Asia, Latin America, East Asia, and the Middle East, with partnerships established with telecom operators in South Korea and Thailand [4] - The company formed a strategic partnership with Tencent Cloud to collaborate on AI products, cloud communication, and smart retail [4] - Data-related products were launched on the Guangzhou and Shenzhen stock exchanges, broadening sales channels [4] Future Outlook - The chairman of Xuanwu Cloud, Chen Yonghui, indicated that the company will continue to focus on expanding its SaaS business, optimizing product services, and enhancing organizational management to achieve sustainable and high-quality growth [4]

Core Insights - The company, Xuanwu Cloud, reported a revenue of 410 million yuan for the first half of 2025, with the SaaS segment contributing 240 million yuan, accounting for 59.6% of total revenue [1] - The company achieved positive operating cash flow in the first half of 2025 due to prudent financial controls and improved cash flow management [1] - Xuanwu Cloud served a total of 2,351 clients across four major industries, with core clients contributing 95% of total client revenue and an average revenue per user (ARPU) of 1.3 million yuan [1] SaaS Segment Performance - The SaaS segment had 1,558 clients during the reporting period, with an ARPU of 1.1 million yuan for core clients [1][2] - The company enhanced its product capabilities in the "AI + SaaS" model, particularly in the sales cloud segment, introducing new features and components to meet client needs [2] AI Product Innovations - Xuanwu Cloud developed various AI applications, including the SKU Super Model for beverage and liquor industries and the unique "AI Photo Detective" model for the milk powder sector [3] - The company launched multiple AI assistants on its low-code platform to improve internal development and market insights [3] International Expansion - The overseas cloud communication business saw rapid growth in clients and revenue, with services expanding to Southeast Asia, Latin America, East Asia, and the Middle East [4] - Strategic partnerships were established with telecom operators in countries like South Korea and Thailand, facilitating localized operations [4] - A strategic collaboration with Tencent Cloud was formed to enhance AI products, cloud communication, and smart retail services [4] Future Outlook - The company aims to continue focusing on expanding its SaaS business, optimizing product services, and enhancing organizational management to achieve sustainable and high-quality growth [4]

[Company Information and Financial Summary](index=1&type=section&id=I.%20Company%20Information%20and%20Financial%20Summary) This section provides an overview of the company's profile, including its registration, business, and ultimate controlling shareholders, along with a summary of its financial performance for the period [Company Overview](index=1&type=section&id=1%2E1%20Company%20Overview) Xuan Wu Cloud Technology Holdings Limited, registered in the Cayman Islands, provides smart CRM services in China, with its unaudited interim financials approved on August 28, 2025 - Company Name: **Xuan Wu Cloud Technology Holdings Limited**[2](index=2&type=chunk) - Registered in the **Cayman Islands**[2](index=2&type=chunk)[8](index=8&type=chunk) - Primary business: Providing **smart Customer Relationship Management (CRM) services** in China[8](index=8&type=chunk) - Ultimate controlling shareholders: Mr. Chen Yonghui, Mr. Huang Fangjie, and Mr. Li Hairong[8](index=8&type=chunk) - Financial information is presented in **RMB thousands** and rounded to the nearest thousand[9](index=9&type=chunk) - The condensed consolidated interim financial information is **unaudited** and was approved for publication by the Board on **August 28, 2025**[9](index=9&type=chunk)[10](index=10&type=chunk) [Financial Performance Summary](index=1&type=section&id=1%2E2%20Financial%20Performance%20Summary) For the six months ended June 30, 2025, revenue decreased by **36.5%** to **RMB 410,907 thousands**, gross profit declined, and the company incurred an operating loss Financial Performance Summary for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 410,907 | 647,469 | (36.5) | | Gross Profit | 74,950 | 101,249 | (26.0) | | Operating Loss | (26,968) | (4,106) | N/A | | Loss Before Tax | (29,084) | (5,912) | N/A | | Loss Attributable to Owners of the Company | (25,874) | (6,444) | N/A | | Loss Per Share (RMB) | (0.048) | (0.012) | N/A | [Condensed Consolidated Financial Statements](index=2&type=section&id=II.%20Condensed%20Consolidated%20Financial%20Statements) This section presents the company's condensed consolidated statement of comprehensive income and financial position for the reporting period, detailing revenue, expenses, assets, and liabilities [Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=2%2E1%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, revenue was **RMB 410,907 thousands**, cost of sales **RMB 335,957 thousands**, resulting in a gross profit of **RMB 74,950 thousands**, with an operating loss of **RMB 26,968 thousands** and a loss attributable to owners of the company of **RMB 25,874 thousands** Condensed Consolidated Statement of Comprehensive Income for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 410,907 | 647,469 | | Cost of Sales | (335,957) | (546,220) | | Gross Profit | 74,950 | 101,249 | | Selling and Distribution Expenses | (48,789) | (49,854) | | Administrative Expenses | (22,853) | (23,353) | | Research and Development Expenses | (28,598) | (32,790) | | Operating Loss | (26,968) | (4,106) | | Loss Before Income Tax | (29,084) | (5,912) | | Loss and Total Comprehensive Loss for the Period | (29,238) | (6,140) | | Loss Attributable to Owners of the Company | (25,874) | (6,444) | | Basic and Diluted Loss Per Share (RMB) | (0.048) | (0.012) | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=2%2E2%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets were **RMB 624,742 thousands**, total equity **RMB 299,469 thousands**, and total liabilities **RMB 325,273 thousands**, showing slight asset decrease and adjusted equity/liability structure compared to year-end 2024 Condensed Consolidated Statement of Financial Position as of June 30, 2025 | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 32,569 | 39,765 | | Current Assets | 592,173 | 594,043 | | **Total Assets** | **624,742** | **633,808** | | **Equity** | | | | Equity Attributable to Owners of the Company | 306,665 | 331,621 | | Non-controlling Interests | (7,196) | (3,552) | | **Total Equity** | **299,469** | **328,069** | | **Liabilities** | | | | Non-current Liabilities | 2,137 | 8,026 | | Current Liabilities | 323,136 | 297,713 | | **Total Liabilities** | **325,273** | **305,739** | | **Total Equity and Liabilities** | **624,742** | **633,808** | [Notes to the Financial Information](index=5&type=section&id=III.%20Notes%20to%20the%20Financial%20Information) This section provides detailed notes on the financial information, covering general data, accounting policies, segment performance, revenue, expenses, financing, taxation, and balance sheet items [General Information and Basis of Preparation](index=5&type=section&id=3%2E1%20General%20Information%20and%20Basis%20of%20Preparation) This section outlines the company's registration, primary business, controlling shareholders, and the presentation currency and approval date of its unaudited interim financial information, prepared under HKAS 34 - Financial information is presented in **RMB thousands** and rounded to the nearest thousand[9](index=9&type=chunk) - The condensed consolidated interim financial information is **unaudited** and was approved for publication by the Board on **August 28, 2025**[9](index=9&type=chunk)[10](index=10&type=chunk) - Prepared in accordance with **Hong Kong Accounting Standard 34 "Interim Financial Reporting"**[11](index=11&type=chunk) [Accounting Policies](index=6&type=section&id=3%2E2%20Accounting%20Policies) The Group's accounting policies are consistent with its 2024 annual financial statements, with new and revised standards adopted having no material impact on the interim financial information, and no significant future impact expected - Adoption of new and revised standards (e.g., HKAS 21 and HKFRS 1 amendments) had **no material impact**[12](index=12&type=chunk)[13](index=13&type=chunk) - New standards effective in the future (e.g., HKFRS 9, 7, 18, 19, 10 and HKAS 28 amendments) are **not expected to have a material impact** on the condensed consolidated interim financial information[14](index=14&type=chunk)[15](index=15&type=chunk) [Segment Information](index=7&type=section&id=3%2E3%20Segment%20Information) The company's chief operating decision-maker assesses performance based on gross profit from CRM PaaS and SaaS services, with PaaS revenue at **RMB 165,951 thousands** and SaaS revenue at **RMB 244,956 thousands** for the six months ended June 30, 2025, with SaaS contributing higher gross profit [Overview of Segments and Principal Activities](index=7&type=section&id=3%2E3%2E1%20Overview%20of%20Segments%20and%20Principal%20Activities) The company's chief operating decision-maker categorizes business into CRM PaaS and CRM SaaS services, with PaaS offering telecom network communication capabilities and SaaS providing one-stop smart CRM solutions like marketing, sales, and customer service clouds - Operating segments: **CRM PaaS services (cPaaS)** and **CRM SaaS services** (Marketing Cloud, Sales Cloud, Customer Service Cloud)[17](index=17&type=chunk)[18](index=18&type=chunk) - The chief operating decision-maker assesses performance based on **gross profit** for each segment, without using separate segment asset and liability information[18](index=18&type=chunk) - Most assets are located in **China**[19](index=19&type=chunk) [Segment Performance](index=8&type=section&id=3%2E3%2E2%20Segment%20Performance) For the six months ended June 30, 2025, PaaS revenue was **RMB 165,951 thousands** and SaaS revenue was **RMB 244,956 thousands**, totaling **RMB 410,907 thousands**, with the SaaS segment contributing higher gross profit Segment Performance for the Six Months Ended June 30, 2025 | Metric | PaaS (RMB thousands) | SaaS (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | | Revenue | 165,951 | 244,956 | 410,907 | | Cost of Sales | (156,000) | (179,957) | (335,957) | | Gross Profit | 9,951 | 64,999 | 74,950 | Segment Performance for the Six Months Ended June 30, 2024 | Metric | PaaS (RMB thousands) | SaaS (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | | Revenue | 282,411 | 365,058 | 647,469 | | Cost of Sales | (265,456) | (280,764) | (546,220) | | Gross Profit | 16,955 | 84,294 | 101,249 | [Revenue Analysis](index=10&type=section&id=3%2E4%20Revenue%20Analysis) For the six months ended June 30, 2025, PaaS revenue was **RMB 165,951 thousands** and SaaS revenue was **RMB 244,956 thousands**, with most revenue recognized at a point in time and an increase in contract liabilities Revenue Analysis by Category for the Six Months Ended June 30 | Category | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | PaaS | 165,951 | 282,411 | | SaaS | 244,956 | 365,058 | | **Total** | **410,907** | **647,469** | Revenue Analysis by Timing of Revenue Recognition from Customer Contracts for the Six Months Ended June 30 | Timing of Recognition | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | At a point in time | 390,237 | 629,875 | | Over a period of time | 20,670 | 17,594 | | **Total** | **410,907** | **647,469** | - Contract liabilities increased from **RMB 37,535 thousands** as of December 31, 2024, to **RMB 62,158 thousands** as of June 30, 2025[23](index=23&type=chunk) [Expense Analysis](index=11&type=section&id=3%2E5%20Expense%20Analysis) For the six months ended June 30, 2025, total expenses were **RMB 436,197 thousands**, primarily comprising telecom resource costs and employee benefit expenses, both of which decreased year-on-year, while other income fell **42.9%** due to reduced government grants and VAT refunds Expense Analysis for the Six Months Ended June 30 | Expense Category | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Telecom resource costs | 321,281 | 516,683 | | Employee benefit expenses | 86,137 | 98,332 | | Travel and entertainment expenses | 6,536 | 8,284 | | Outsourced customer service expenses | 5,746 | 5,590 | | Depreciation and amortization expenses | 4,724 | 4,984 | | Infrastructure and equipment expenses | 3,916 | 3,542 | | Professional service fees | 3,294 | 2,711 | | Marketing and promotion expenses | 929 | 1,383 | | Taxes and other levies | 837 | 1,219 | | Conference and office expenses | 653 | 914 | | Outsourced implementation costs | 330 | 5,751 | | Lease payments for short-term leases | 240 | 246 | | Auditor's remuneration | 75 | 9 | | Others | 1,499 | 2,569 | | **Total** | **436,197** | **652,217** | - Other income decreased by **42.9%** to **RMB 1,636 thousands**, primarily due to reduced government grants and VAT refunds[24](index=24&type=chunk)[26](index=26&type=chunk)[71](index=71&type=chunk) [Net Finance Costs](index=12&type=section&id=3%2E6%20Net%20Finance%20Costs) For the six months ended June 30, 2025, the company recorded net finance costs of **RMB 2,116 thousands**, an increase from **RMB 1,806 thousands** in the prior period, primarily driven by interest expense on borrowings Net Finance Costs for the Six Months Ended June 30 | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Finance income (interest on bank deposits) | 101 | 578 | | Finance costs (interest on lease liabilities) | (91) | (250) | | Finance costs (interest on borrowings) | (2,126) | (2,134) | | **Net Finance Costs** | **(2,116)** | **(1,806)** | [Income Tax Expense](index=12&type=section&id=3%2E7%20Income%20Tax%20Expense) The company is tax-exempt in the Cayman Islands and BVI, with no assessable profits in Hong Kong; mainland China operations typically face a 25% corporate income tax, but high-tech enterprises like Xuan Wu enjoy a 15% preferential rate, and small low-profit enterprises a 20% rate, with income tax expense for the six months ended June 30, 2025, being **RMB 154 thousands** - Tax-exempt in the **Cayman Islands** and **British Virgin Islands**, with no assessable profits in Hong Kong[28](index=28&type=chunk)[29](index=29&type=chunk) - China's corporate income tax rate is typically **25%**, but high-tech enterprises (Xuan Wu) enjoy a **15% preferential rate** until December 2027[30](index=30&type=chunk)[31](index=31&type=chunk) - Small low-profit enterprises enjoy a **20% preferential tax rate**, with taxable income below **RMB 3.0 million** taxed at 25%[32](index=32&type=chunk) Income Tax Expense for the Six Months Ended June 30 | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current income tax | – | (13) | | Deferred income tax | (154) | (215) | | **Income Tax Expense** | **(154)** | **(228)** | [Loss Per Share](index=13&type=section&id=3%2E8%20Loss%20Per%20Share) For the six months ended June 30, 2025, basic loss per share expanded to **RMB 0.048**, from **RMB 0.012** in the prior period, with diluted loss per share equaling basic loss per share due to the company's loss Loss Per Share for the Six Months Ended June 30 | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Loss Attributable to Owners of the Company (RMB thousands) | (25,874) | (6,444) | | Weighted average number of ordinary shares deemed to be issued (thousands) | 536,268 | 547,162 | | **Basic Loss Per Share Attributable to Owners of the Company for the Period (RMB)** | **(0.048)** | **(0.012)** | - Diluted loss per share is equal to basic loss per share, as potential ordinary shares have an anti-dilutive effect[36](index=36&type=chunk) [Trade and Other Receivables and Prepayments](index=14&type=section&id=3%2E9%20Trade%20and%20Other%20Receivables%20and%20Prepayments) As of June 30, 2025, trade receivables, bills receivable, other receivables, and prepayments totaled **RMB 485,907 thousands**, a decrease from **RMB 513,107 thousands** at year-end 2024, with an increase in impairment provision for trade receivables Trade Receivables, Bills Receivable, Other Receivables and Prepayments as of June 30, 2025 | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables (net) | 262,479 | 286,396 | | Impairment provision for trade receivables | (35,684) | (32,937) | | Bills receivable | – | 1,514 | | Other receivables (net) | 13,712 | 15,887 | | Prepayments to suppliers | 208,679 | 207,966 | | Prepaid taxes | 1,037 | 1,344 | | **Total** | **485,907** | **513,107** | - Trade receivables aging analysis shows the highest proportion for balances not exceeding three months, but balances over two years have increased[38](index=38&type=chunk) [Borrowings](index=15&type=section&id=3%2E10%20Borrowings) As of June 30, 2025, current bank borrowings were **RMB 143,619 thousands**, largely consistent with year-end 2024, with some borrowings secured by company patents and others by company guarantees Borrowings as of June 30, 2025 | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Current bank borrowings | 143,619 | 144,040 | - Some bank borrowings are secured by certain patents of the Group, while others are guaranteed by the Company[40](index=40&type=chunk) [Trade and Other Payables](index=16&type=section&id=3%2E11%20Trade%20and%20Other%20Payables) As of June 30, 2025, trade payables, bills payable, and other payables totaled **RMB 112,023 thousands**, a slight increase from **RMB 108,764 thousands** at year-end 2024, primarily comprising telecom expenses and server rental fees Trade and Other Payables as of June 30, 2025 | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade payables (third parties) | 89,635 | 85,772 | | Other payables (third parties) | 6,193 | 5,697 | | Accrued salaries | 9,887 | 10,582 | | Other taxes payable | 6,308 | 6,713 | | **Total** | **112,023** | **108,764** | - Trade payables primarily refer to **telecom expenses payable** and **server rental fees payable**[42](index=42&type=chunk) - Trade payables aging analysis shows an increase in balances over six months old[42](index=42&type=chunk) [Dividends](index=16&type=section&id=3%2E12%20Dividends) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[43](index=43&type=chunk) [Business Review](index=17&type=section&id=IV.%20Business%20Review) This section reviews the company's overall business performance, including revenue trends, SaaS segment details, and ecosystem development initiatives during the reporting period [Overall Business Performance](index=17&type=section&id=4%2E1%20Overall%20Business%20Performance) In the first half, the company strengthened its AI capabilities, but domestic revenue from PaaS and some SaaS declined **36.5%** to **RMB 410.9 million** due to telecom regulatory adjustments, while overseas cloud communication business grew rapidly, and overall gross margin improved with positive operating cash flow - Driven by global digital economy and AI innovation, the company, as a smart CRM service provider, continues to **strengthen its AI capabilities**[44](index=44&type=chunk) - Total revenue decreased by **36.5%** year-on-year to **RMB 410.9 million**, primarily due to domestic telecom industry regulatory adjustments impacting PaaS and some SaaS revenue[45](index=45&type=chunk) - Overseas cloud communication business achieved rapid customer and revenue growth, covering Southeast Asia, Latin America, East Asia, and the Middle East[45](index=45&type=chunk) - Focusing on AI+SaaS business, **gross margin steadily improved**, and **operating cash flow turned positive**[46](index=46&type=chunk) - Obtained a total of **410 authorized patents and computer software copyrights**, with **11 new additions** during the reporting period[46](index=46&type=chunk) - Provided digital transformation and upgrade services to **2,351 customers** across four major industries: finance, fast-moving consumer goods, government and enterprises, and TMT[46](index=46&type=chunk) [SaaS Business Segmentation](index=17&type=section&id=4%2E2%20SaaS%20Business%20Segmentation) SaaS business, comprising Marketing Cloud, Sales Cloud, and Customer Service Cloud, generated **RMB 245.0 million** in revenue, a **32.9%** year-on-year decrease due to policy impacts and active reduction of loss-making projects, but SaaS gross margin improved to **26.5%**, with core customers contributing **RMB 1.3 million** per capita - SaaS business revenue was **RMB 245.0 million**, a **32.9%** year-on-year decrease, with gross margin improving to **26.5%**[47](index=47&type=chunk) - Core customer revenue accounted for **95.0%** of total customer revenue, with an average contribution of **RMB 1.3 million** per core customer[47](index=47&type=chunk) - SaaS core customer count was **1,558**, with an average contribution of **RMB 1.1 million** per person[47](index=47&type=chunk) [Marketing Cloud](index=18&type=section&id=4%2E2%2E1%20Marketing%20Cloud) Marketing Cloud served financial and government clients, generating **RMB 189.7 million** in revenue, a **38.1%** year-on-year decrease due to telecom regulatory policies, while ICC completed 5G message capability upgrades, increased trusted computing adaptations to 14, and adapted to HarmonyOS, maintaining over **90%** project win rate - Marketing Cloud revenue was **RMB 189.7 million**, a **38.1%** year-on-year decrease[48](index=48&type=chunk) - ICC (Integrated Communication Center) completed adaptation to the latest direct connection protocols of mainstream domestic telecom operators, fully upgrading its **5G message delivery capabilities**[48](index=48&type=chunk) - ICC's trusted computing adaptations increased to **14**, completing HarmonyOS adaptation for components like "Jiyan" and "iPush", maintaining an over **90% project win rate**[48](index=48&type=chunk) - DMP Smart Marketing Cloud platform deeply serves government, enterprise, and e-commerce sectors, assisting enterprises in building digital marketing and operation systems[48](index=48&type=chunk) [Sales Cloud](index=19&type=section&id=4%2E2%2E2%20Sales%20Cloud) Sales Cloud, focusing on AI+CRM for consumer goods, generated **RMB 28.6 million** in revenue, a **33.6%** year-on-year decrease due to active reduction of loss-making projects, but with improved gross margin; core product [Smart 100] enhanced features, Smart U-Customer upgraded with Huawei Ascend AI and Deep Seek large models for "second-level response," and AI product offerings expanded to 12 standard products including SKU Super Model and "AI Photo Detective" - Sales Cloud revenue was **RMB 28.6 million**, a **33.6%** year-on-year decrease, but with **improved gross margin**[52](index=52&type=chunk) - Annual Recurring Revenue (ARR) accounted for **62.9%** of Sales Cloud revenue, a **12.4 percentage point** increase year-on-year[53](index=53&type=chunk) - Core product [Smart 100] enhanced features, adding configuration components like "Super Form" and "Survey Questionnaire"[50](index=50&type=chunk) - Smart U-Customer fully upgraded based on Huawei Ascend AI ecosystem and Deep Seek large models, achieving "second-level response" for customer profile analysis and business opportunity prediction, and releasing multi-language versions[50](index=50&type=chunk) - Launched AI products based on self-developed Xuan Tao large model and open-source large models like Deep Seek, including **SKU Super Model** and "**AI Photo Detective**"[51](index=51&type=chunk) - The number of AI standard products increased to **12**, adding functions such as terminal display empty space detection and layered detection[51](index=51&type=chunk) - Developed multiple AI intelligent agents based on the aPaaS platform, such as "Development Assistant," "Market Survey Assistant," "Voice Operation Assistant," and "Smart Xuan" for Smart U-Customer[51](index=51&type=chunk) - AIoT Smart Refrigerator continued to expand offline terminal store coverage and iterated on dynamic sales application scenarios[52](index=52&type=chunk) [Customer Service Cloud](index=20&type=section&id=4%2E2%2E3%20Customer%20Service%20Cloud) Customer Service Cloud further increased its market share in post-loan management SaaS, with seat scale growing **19.9%** year-on-year, expanding product capabilities from outbound calls to all touchpoints, integrating Deep Seek and other open-source large models to develop a script voice configuration robot that reduces workload by **90%**, and achieving **RMB 26.6 million** in revenue, a **71.7%** year-on-year increase - Market share in post-loan management SaaS business increased, with seat scale growing by **19.9%** year-on-year[53](index=53&type=chunk) - Contact touchpoints expanded from outbound calls to all touchpoints, achieving breakthroughs in new post-loan management touchpoints such as SMS and flash messages[53](index=53&type=chunk) - Integrated Deep Seek and other open-source large models, developing a script voice configuration robot that can **reduce workload by 90%**[53](index=53&type=chunk) - Customer Service Cloud revenue was **RMB 26.6 million**, a significant **71.7%** year-on-year increase[53](index=53&type=chunk) [Ecosystem Development](index=20&type=section&id=4%2E3%20Ecosystem%20Development) The company actively builds its domestic resource and channel ecosystem, forming a strategic partnership with Tencent Cloud, collaborating with Huawei Ascend to upgrade product versions, and listing data products on Guangzhou and Shenzhen data exchanges to expand sales channels - Established a **strategic partnership with Tencent Cloud** to collaborate on AI products and services, cloud communication, and smart retail[54](index=54&type=chunk) - Collaborated with **Huawei Ascend** to jointly upgrade and iterate product versions[54](index=54&type=chunk) - Data products have been listed on the **Guangzhou and Shenzhen Data Exchanges** to expand sales channels[54](index=54&type=chunk) [Business Outlook](index=21&type=section&id=V.%20Business%20Outlook) This section outlines the company's future strategies, focusing on core product standardization, AI product development, and expanding its domestic and international ecosystem [Core Product Standardization and Profit Enhancement](index=21&type=section&id=5%2E1%20Core%20Product%20Standardization%20and%20Profit%20Enhancement) The company will focus on enhancing the standardization of core products across business lines, developing more standardized product components based on common requirements, and implementing standardized delivery processes to optimize delivery cycles, reduce project costs, and improve profit margins, while also enriching its AI standard product matrix for rapid scaling - Focus on enhancing **core product standardization**, developing more standardized product components, optimizing delivery cycles, reducing project costs, and improving profit margins[55](index=55&type=chunk) - Continue to enrich the **AI standard product matrix** based on customer business scenario demands to achieve rapid product scaling[55](index=55&type=chunk) [Key AI Product Operations and Financial Applications](index=21&type=section&id=5%2E2%20Key%20AI%20Product%20Operations%20and%20Financial%20Applications) The company will strengthen market expansion and operations for key AI products like SKU Super Model and "AI Photo Detective" to establish them as flagship AI products, while leveraging its financial industry client resources to develop AI applications for the financial sector, including intelligent agent development, smart customer service optimization, and digital humans, to deepen cooperation - Strengthen market expansion and operations for key AI products such as **SKU Super Model** and "**AI Photo Detective**" to build them into flagship AI products[56](index=56&type=chunk) - Leverage financial industry client resources to develop AI product applications for the financial sector, including intelligent agent development, smart customer service optimization, and digital humans[56](index=56&type=chunk) [Domestic and International Ecosystem Development and Market Responsiveness](index=21&type=section&id=5%2E3%20Domestic%20and%20International%20Ecosystem%20Development%20and%20Market%20Responsiveness) The company will continue to build its ecosystem, maintaining close ties with upstream and downstream partners, strengthening interactions and cooperation with telecom operators, cloud vendors, and industry peers, and plans to localize operations in some overseas regions, deepen cooperation with resource providers, and further expand its customer base to enhance market responsiveness - Continue to build the ecosystem, strengthening interactions and cooperation with **telecom operators, cloud vendors, and industry peers**[57](index=57&type=chunk) - Plan to achieve **localized operations in some overseas regions**, deepen cooperation with resource providers, and expand customer sources[57](index=57&type=chunk) [Management Discussion and Analysis](index=22&type=section&id=VI.%20Management%20Discussion%20and%20Analysis) This section provides management's detailed discussion and analysis of the company's financial performance, including revenue, expenses, profitability, liquidity, and financial resources [Financial Overview](index=22&type=section&id=6%2E1%20Financial%20Overview) This section analyzes the financial performance for the reporting period, detailing changes in revenue, cost of sales, gross profit, various expenses, and the ultimate loss, primarily attributing the decline in revenue and gross profit to domestic telecom regulatory adjustments, while SaaS gross margin improved, and the loss attributable to owners of the company expanded to **RMB 25.9 million** due to reduced PaaS and some SaaS sales - Total revenue decreased by **36.5%** to **RMB 410.9 million**, primarily due to domestic telecom industry regulatory adjustments[58](index=58&type=chunk) - The SaaS segment's proportion of total revenue increased to **59.6%** (2024: 56.4%), with PaaS accounting for **40.4%**[58](index=58&type=chunk) [Revenue Analysis](index=22&type=section&id=6%2E1%2E1%20Revenue%20Analysis) For the six months ended June 30, 2025, PaaS revenue decreased by **41.2%** to **RMB 166.0 million**, and SaaS revenue decreased by **32.9%** to **RMB 245.0 million**, primarily due to domestic telecom regulatory policy adjustments and the company's active reduction of loss-making projects Segment Revenue for the Six Months Ended June 30 | Segment | 2025 (RMB thousands) | Proportion (%) | 2024 (RMB thousands) | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | PaaS | 165,951 | 40.4 | 282,411 | 43.6 | | SaaS | 244,956 | 59.6 | 365,058 | 56.4 | | **Total** | **410,907** | **100.0** | **647,469** | **100.0** | - PaaS revenue decreased by **41.2%** to **RMB 166.0 million**, primarily due to domestic telecom industry regulatory policy adjustments[61](index=61&type=chunk) - SaaS revenue decreased by **32.9%** to **RMB 245.0 million**, primarily due to the company's active reduction of loss-making projects[63](index=63&type=chunk) SaaS Revenue Details for the Six Months Ended June 30 | Solution | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Marketing Cloud | 189,743 | 306,495 | | Sales Cloud | 28,590 | 43,061 | | Customer Service Cloud | 26,623 | 15,502 | | **Total** | **244,956** | **365,058** | [Cost of Sales](index=23&type=section&id=6%2E1%2E2%20Cost%20of%20Sales) For the six months ended June 30, 2025, cost of sales decreased by **38.5%** to **RMB 336.0 million**, consistent with the reduction in PaaS and SaaS business, with PaaS cost of sales decreasing by **41.2%** and SaaS cost of sales by **35.9%**, mainly due to lower telecom resource costs, labor costs, and outsourced implementation costs - Cost of sales decreased by **38.5%** to **RMB 336.0 million**, consistent with the reduction in PaaS and SaaS business[64](index=64&type=chunk) - PaaS cost of sales decreased by **41.2%** to **RMB 156.0 million**, primarily due to lower telecom resource costs[64](index=64&type=chunk) - SaaS cost of sales decreased by **35.9%** to **RMB 180.0 million**, primarily due to reduced telecom resource costs, labor costs, and outsourced implementation costs[64](index=64&type=chunk) [Gross Profit and Gross Margin](index=23&type=section&id=6%2E1%2E3%20Gross%20Profit%20and%20Gross%20Margin) Overall gross profit decreased by **26.0%** to **RMB 75.0 million**, but the overall gross margin increased from **15.6%** to **18.2%**, with PaaS gross margin remaining at **6.0%** and SaaS gross margin increasing to **26.5%** due to improved profitability of the core SaaS business - Overall gross profit decreased by **26.0%** to **RMB 75.0 million**[65](index=65&type=chunk) - Overall gross margin increased from **15.6%** to **18.2%**[65](index=65&type=chunk) - PaaS gross margin remained at **6.0%**[66](index=66&type=chunk) - SaaS gross margin increased to **26.5%** (2024: 23.1%), primarily due to improved profitability of the core SaaS business[66](index=66&type=chunk) [Selling and Distribution Expenses](index=24&type=section&id=6%2E1%2E4%20Selling%20and%20Distribution%20Expenses) Selling and distribution expenses decreased by **2.1%** to **RMB 48.8 million**, mainly due to reduced entertainment and travel expenses for sales and marketing personnel - Selling and distribution expenses decreased by **2.1%** to **RMB 48.8 million**[67](index=67&type=chunk) - Primarily due to reduced entertainment and travel expenses for sales and marketing personnel[67](index=67&type=chunk) [Administrative Expenses](index=24&type=section&id=6%2E1%2E5%20Administrative%20Expenses) Administrative expenses decreased by **2.1%** to **RMB 22.9 million**, primarily due to reduced employee benefit expenses - Administrative expenses decreased by **2.1%** to **RMB 22.9 million**[68](index=68&type=chunk) - Primarily due to reduced employee benefit expenses[68](index=68&type=chunk) [Research and Development Expenses](index=24&type=section&id=6%2E1%2E6%20Research%20and%20Development%20Expenses) Research and development expenses decreased by **12.8%** to **RMB 28.6 million**, primarily due to effective optimization of R&D processes and organization - Research and development expenses decreased by **12.8%** to **RMB 28.6 million**[69](index=69&type=chunk) - Primarily due to effective optimization of R&D processes and organization[69](index=69&type=chunk) [Net Impairment Loss on Financial Assets](index=24&type=section&id=6%2E1%2E7%20Net%20Impairment%20Loss%20on%20Financial%20Assets) Net impairment loss on financial assets slightly increased by **0.7%** to **RMB 2.7 million** - Net impairment loss on financial assets increased by **0.7%** to **RMB 2.7 million**[70](index=70&type=chunk) [Other Income](index=24&type=section&id=6%2E1%2E8%20Other%20Income) Other income decreased by **42.9%** to **RMB 1.6 million**, primarily due to reduced government grants and VAT refunds - Other income decreased by **42.9%** to **RMB 1.6 million**[71](index=71&type=chunk) - Primarily due to reduced government grants and VAT refunds[71](index=71&type=chunk) [Net Finance Costs](index=24&type=section&id=6%2E1%2E9%20Net%20Finance%20Costs) Net finance costs were **RMB 2.1 million**, an increase from **RMB 1.8 million** in the prior period - Net finance costs were **RMB 2.1 million** (2024: RMB 1.8 million)[72](index=72&type=chunk) [Income Tax Expense](index=25&type=section&id=6%2E1%2E10%20Income%20Tax%20Expense) Income tax expense remained at **RMB 0.2 million**, consistent with the prior period - Income tax expense was **RMB 0.2 million** (2024: RMB 0.2 million)[73](index=73&type=chunk) [Loss Attributable to Owners of the Company](index=25&type=section&id=6%2E1%2E11%20Loss%20Attributable%20to%20Owners%20of%20the%20Company) Loss attributable to owners of the company expanded to **RMB 25.9 million**, primarily due to increased telecom industry regulation in the first half of 2025, leading to reduced PaaS and some SaaS sales - Loss attributable to owners of the company was **RMB 25.9 million** (2024: RMB 6.4 million)[74](index=74&type=chunk) - The expanded loss was primarily due to increased telecom industry regulation in the first half of 2025, leading to reduced PaaS and some SaaS sales[74](index=74&type=chunk) [Liquidity and Financial Resources](index=25&type=section&id=6%2E2%20Liquidity%20and%20Financial%20Resources) The company maintains prudent financial management, actively monitoring liquidity, with cash and cash equivalents at **RMB 94.6 million** as of June 30, 2025, a **32.4%** increase from year-end 2024, and total debt of **RMB 150,939 thousands**, slightly down from year-end 2024, with no significant contingent liabilities or capital commitments - Adopts prudent financial management policies, actively monitoring liquidity, and maintaining sufficient financial resources[75](index=75&type=chunk) [Financial Policy](index=25&type=section&id=6%2E2%2E1%20Financial%20Policy) The company adopts prudent financial management policies, actively monitoring its liquidity position, and regularly reviewing and adjusting its financial structure to ensure optimal allocation of financial resources - Adopts prudent financial management policies, actively monitoring liquidity position[75](index=75&type=chunk) - Regularly reviews and adjusts financial structure to respond to changing economic conditions and ensure optimal allocation of financial resources[75](index=75&type=chunk) [Cash and Cash Equivalents](index=25&type=section&id=6%2E2%2E2%20Cash%20and%20Cash%20Equivalents) As of June 30, 2025, cash and cash equivalents amounted to **RMB 94.6 million**, representing a **32.4%** increase from December 31, 2024 - Cash and cash equivalents were **RMB 94.6 million**, an increase of **32.4%** from December 31, 2024[76](index=76&type=chunk) [Debt](index=25&type=section&id=6%2E2%2E3%20Debt) As of June 30, 2025, total debt was **RMB 150,939 thousands**, primarily comprising bank borrowings and lease liabilities, a slight decrease from year-end 2024 Debt as of June 30, 2025 | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Borrowings | 143,619 | 144,040 | | Lease liabilities | 7,320 | 15,224 | | **Total** | **150,939** | **159,264** | [Contingent Liabilities and Capital Commitments](index=26&type=section&id=6%2E2%2E4%20Contingent%20Liabilities%20and%20Capital%20Commitments) As of June 30, 2025, the Group had no significant contingent liabilities or capital commitments - No significant contingent liabilities[78](index=78&type=chunk) - No capital commitments[79](index=79&type=chunk) [Other Information](index=26&type=section&id=VII.%20Other%20Information) This section covers additional information including employee remuneration, corporate governance, share repurchases, interim dividends, audit committee review, and post-balance sheet events [Employee Remuneration and Employment Relationship](index=26&type=section&id=7%2E1%20Employee%20Remuneration%20and%20Employment%20Relationship) As of June 30, 2025, the Group had **609 employees**, with total employee costs of **RMB 86.1 million**, and the company has comprehensive training programs to ensure up-to-date employee skills - As of June 30, 2025, there were **609 employees**[80](index=80&type=chunk) - Total employee costs were **RMB 86.1 million** (2024: RMB 98.3 million)[80](index=80&type=chunk) - Comprehensive training programs cover corporate culture, rights and responsibilities, team building, professional conduct, and work performance[80](index=80&type=chunk) [Corporate Governance and Standard Code for Securities Transactions](index=26&type=section&id=7%2E2%20Corporate%20Governance%20and%20Standard%20Code%20for%20Securities%20Transactions) The company has adopted a standard code for directors' securities transactions, which all directors confirm compliance with; regarding corporate governance, the company deviates from the code requiring separation of Chairman and CEO roles, with Mr. Chen holding both, an arrangement the Board believes benefits the business and has sufficient safeguards - All directors confirmed compliance with the **Standard Code for Securities Transactions by Directors**[81](index=81&type=chunk) - The company deviates from Corporate Governance Code Provision C.2.1, with Mr. Chen serving as both Chairman and Chief Executive Officer[82](index=82&type=chunk) - The Board believes this dual role arrangement benefits business prospects and operational efficiency, with sufficient safeguards to ensure a balance of power on the Board[82](index=82&type=chunk)[83](index=83&type=chunk) [Share Repurchases](index=27&type=section&id=7%2E3%20Share%20Repurchases) During the reporting period, the company repurchased **376,000 shares** for a total consideration of **HKD 357,013.14** under its repurchase mandate, holding them as treasury shares - Under the repurchase mandate, the company is authorized to repurchase up to **10%** of its issued share capital[84](index=84&type=chunk) - During the reporting period, the company repurchased **376,000 shares** for a total consideration of **HKD 357,013.14**, holding them as treasury shares[85](index=85&type=chunk) Details of Share Repurchases During the Reporting Period | Month of Repurchase | Number of Shares Repurchased | Highest Price Paid Per Share (HKD) | Lowest Price Paid Per Share (HKD) | Total Consideration Paid (HKD) | | :--- | :--- | :--- | :--- | :--- | | January 2025 | 99,000 | 0.88 | 0.82 | 86,072.23 | | February 2025 | 30,500 | 1.16 | 0.86 | 32,042.69 | | March 2025 | – | – | – | – | | April 2025 | 87,000 | 1.01 | 0.85 | 81,907.86 | | May 2025 | 69,500 | 0.97 | 0.90 | 65,438.47 | | June 2025 | 90,000 | 1.14 | 0.90 | 91,551.89 | | July 2025 | 46,500 | 1.15 | 1.05 | 51,020.39 | | August 2025 (up to the latest practicable date) | – | – | – | – | | **Total** | **422,500** | | | **408,033.53** | [Interim Dividends](index=28&type=section&id=7%2E4%20Interim%20Dividends) The Board does not recommend the payment of an interim dividend for the reporting period, consistent with the prior period - The Board does not recommend the payment of an interim dividend for the reporting period[87](index=87&type=chunk) [Audit Committee Review](index=28&type=section&id=7%2E5%20Audit%20Committee%20Review) The Audit Committee has reviewed the Group's unaudited condensed consolidated interim results, deeming them prepared in accordance with applicable accounting standards and listing rules, with sufficient disclosure and no objections to the accounting treatment - The Audit Committee has reviewed the interim results, finding them prepared in accordance with applicable accounting standards and listing rules, with sufficient disclosure and no objections to the accounting treatment[88](index=88&type=chunk) [Material Post-Balance Sheet Events](index=28&type=section&id=7%2E6%20Material%20Post-Balance%20Sheet%20Events) No material post-balance sheet events have occurred from the end of the reporting period up to the date of this announcement - No material post-balance sheet events have occurred from the end of the reporting period up to the date of this announcement[89](index=89&type=chunk) [Publication of Announcement](index=28&type=section&id=7%2E7%20Publication%20of%20Announcement) This announcement has been published on the HKEX website and the company's website, and the interim report will be dispatched in due course to shareholders who have elected to receive printed corporate communications - This announcement has been published on the **HKEX website** and the **company's website**[90](index=90&type=chunk) - The interim report will be dispatched in due course to shareholders who have elected to receive printed corporate communications[90](index=90&type=chunk)