Financial Performance - For the year ended December 31, 2024, the company reported revenue of RMB 604,164,000, an increase from RMB 559,045,000 in 2023, representing an 8.0% growth[16]. - The gross profit for the year was RMB 255,805,000, slightly down from RMB 259,728,000 in the previous year, indicating a decrease of 1.1%[16]. - The company recorded a loss before tax of RMB 1,016,000 compared to a profit of RMB 26,085,000 in 2023, marking a significant decline[16]. - The loss for the year amounted to RMB 2,049,000, contrasting with a profit of RMB 25,011,000 in the prior year[16]. - The adjusted profit for the year, excluding IPO intermediaries fees, was RMB 14,916,000, down from RMB 36,709,000 in 2023, reflecting a decrease of 59.5%[16][18]. - The loss per share attributable to ordinary equity holders was RMB (0.65) cents, compared to earnings of RMB 8.72 cents per share in the previous year[16]. - The overall revenue for the year ended December 31, 2024, increased by 8.1% to RMB604.2 million from RMB559.0 million in 2023, mainly due to growth in digital marketing and other digital content services[47]. Revenue Breakdown - Over 90.0% of the company's revenue is generated from advertising services provided under online reading platform services and digital marketing services[3][6]. - In 2024, revenue from digital marketing services achieved RMB337.0 million, reflecting a year-on-year growth of 16.7%[29]. - Revenue from online games publishing services decreased to RMB6.1 million, representing a year-on-year decline of 41.8%[33]. - Revenue from other digital content services increased to RMB19.2 million, marking a year-on-year growth of 79.0%[34]. - Revenue from online reading platform services decreased by 2.9% from RMB248.9 million in 2023 to RMB241.8 million in 2024, primarily due to a reduction in advertisement placements and a focus on promoting free reading[48]. - Revenue from digital marketing services increased by 16.7% from RMB288.8 million in 2023 to RMB337.0 million in 2024, driven by efforts to expand services and improve advertising platform efficiency[49]. - Revenue from online games publishing services fell by 41.8% from RMB10.6 million in 2023 to RMB6.1 million in 2024, attributed to unsatisfactory performance of newly launched games overseas[50]. - Other digital content services achieved revenue of RMB19.2 million in 2024, marking a 79.0% year-over-year growth[36]. Expenses and Costs - Cost of sales increased by 16.4% from RMB299.3 million for the year ended December 31, 2023, to RMB348.4 million for the year ended December 31, 2024[54]. - Gross profit decreased by 1.5% from RMB259.7 million for the year ended December 31, 2023, to RMB255.8 million for the year ended December 31, 2024[59]. - Gross profit margin decreased from 46.5% for the year ended December 31, 2023, to 42.3% for the year ended December 31, 2024[59]. - Selling and distribution expenses increased by 20.4% from RMB153.7 million for the year ended December 31, 2023, to RMB185.0 million for the year ended December 31, 2024[69]. - Administrative expenses increased by 69.5% from RMB25.6 million for the year ended December 31, 2023, to RMB43.3 million for the year ended December 31, 2024[70]. - R&D expenses decreased by 4.0% from RMB37.6 million for the year ended December 31, 2023, to RMB36.1 million for the year ended December 31, 2024[71]. Assets and Liabilities - Total assets increased by 34.7% from RMB 505.4 million as of December 31, 2023, to RMB 680.8 million as of December 31, 2024, while total liabilities increased by 86.4% from RMB 126.1 million to RMB 235.1 million[82]. - Trade receivables increased by 39.0% from RMB 161.5 million as of December 31, 2023, to RMB 224.6 million as of December 31, 2024, mainly due to increased revenue from digital marketing services[89]. - Current assets increased by 43.7% from RMB 399.9 million as of December 31, 2023, to RMB 574.7 million as of December 31, 2024, while current liabilities increased by 89.9% from RMB 121.7 million to RMB 231.2 million[88]. - Cash and cash equivalents amounted to RMB160.8 million as of December 31, 2024, representing an increase of 80.6% from RMB89.1 million as of December 31, 2023, primarily due to proceeds from the Global Offering and increased bank borrowings[112]. - Interest-bearing bank and other borrowings increased by 127.4% to RMB193.1 million as of December 31, 2024, up from RMB84.9 million as of December 31, 2023, driven by working capital needs for business expansion[113]. - The gearing ratio increased to 43.3% as of December 31, 2024, compared to 22.4% as of December 31, 2023[114]. Strategic Initiatives - The company is committed to continuously improving its AI-based recommendation technology, which is foundational to its business operations[4]. - The Easou Recommendation Engine has been successfully applied in four scenarios, with plans to explore additional business opportunities[4]. - The company aims to achieve diversified monetization through synergy across its various business lines, leveraging its user base and digital content[5]. - The company plans to focus on overseas markets for game publishing and seek high-quality overseas game opportunities[21]. - The company will continue to invest in AIGC technologies and explore their application in various fields such as literary creation and advertising[28]. - The company is exploring recommendation services for short drama content to expand its application scenarios[32]. - The company plans to enhance the Easou AI Recommendation Engine by leveraging large model technology and multimodal feature fusion strategies in 2025[39]. - The company aims to expand overseas markets, focusing on high-quality translated and original short dramas targeting European and American users[42]. - In 2025, the company expects to launch no less than four new games in overseas markets, focusing on light games with in-app advertising as a monetization method[43]. - The company will continue to explore recommendation scenarios for digital music, videos, and e-commerce to achieve new business growth points[46]. Corporate Governance and Structure - The Group's executive team includes Mr. Wang Xi as CEO, Mr. Chen Jun as CFO, and Mr. Zhao Lei as COO, each with extensive experience in management and finance[139][144][148]. - The Company was incorporated in the Cayman Islands on February 9, 2022, and its shares were listed on the Main Board of the Stock Exchange on June 7, 2024[170]. - The Board did not recommend the payment of a final dividend for the year ended December 31, 2024, consistent with the previous year[173]. - The Group's operations are primarily managed in the PRC, with most income and expenses denominated in RMB[128]. - The Group has no future plans for significant investment and capital assets as of the date of the annual report[135]. - The Group's major business activities include digital reading recommendation services, digital marketing services, and online game publishing services[176]. - The Company recognizes the importance of integrating environmental, social, and governance (ESG) values into its corporate strategies[187]. - There were no material acquisitions or disposals of subsidiaries, associates, or joint ventures for the year ended December 31, 2024[129]. - The Group will continue to monitor exchange rates and enhance risk management measures[133]. - The Group has foreign investments in US dollars but no foreign currency borrowings[132]. Future Outlook - The company is enhancing its R&D capabilities with a focus on improving its technological capability in the Easou Recommendation Engine, investing 15.0% of net proceeds, amounting to HK$6.1 million, with an expected utilization by the fourth quarter of 2027[195]. - The company aims to expand its user base on its online reading platform services, targeting a 10.0% increase, which corresponds to HK$4.1 million, with no unutilized balance expected by the third quarter of 2026[196]. - The company is optimizing the application depth of its Easou Recommendation Engine in online reading platform services, allocating 5.0% of net proceeds, equating to HK$2.0 million, with an expected utilization by the third quarter of 2026[196]. - The company plans to relaunch its online games publishing services in overseas markets, utilizing 15.0% of net proceeds, which is HK$6.1 million, with an expected utilization by the third quarter of 2026[197]. - The company is expanding its collaboration with content providers, targeting a 10.0% increase, which corresponds to HK$4.1 million, with an expected utilization by the third quarter of 2026[196]. - The company is increasing its investment in equipment to improve hardware support capabilities, allocating 15.0% of net proceeds, amounting to HK$6.1 million, with an unutilized balance of HK$6.1 million[195]. - The company is establishing cooperative relationships with new media channels to strengthen cooperation depth and attract more traffic, allocating 10.0% of net proceeds, equating to HK$4.1 million, with no unutilized balance expected[196].

Revenue and Profitability - Revenue for the year ended December 31, 2024, was RMB 604.164 million, an increase of 8.0% compared to RMB 559.045 million in 2023[5] - Adjusted profit for the year was RMB 14.916 million, down 59.5% from RMB 36.709 million in the previous year[5] - Revenue increased by 8.1% from RMB 559.0 million for the year ended December 31, 2023, to RMB 604.2 million for the year ended December 31, 2024, primarily due to growth in digital marketing services and other digital content services[14] - The company reported a net loss of RMB 2.05 million for 2024, compared to a profit of RMB 25.01 million in 2023[55] - The company recorded a loss before tax of RMB 1.0 million for the year ended December 31, 2024, compared to a profit of RMB 26.1 million for the year ended December 31, 2023[27] Segment Performance - The digital marketing segment generated revenue of RMB 337.0 million, representing a year-on-year growth of 16.7%[7] - Revenue from the online game publishing service was RMB 6.1 million, a decline of 41.8% year-on-year[8] - Other digital content services achieved revenue of RMB 19.2 million, marking a significant increase of 79.0% compared to the previous year[9] - Digital marketing services revenue rose by 16.7% from RMB 288.8 million to RMB 337.0 million, driven by enhanced marketing efforts and improved advertising platform efficiency[15] - Revenue from digital reading platform services decreased by 2.9% from RMB 248.9 million to RMB 241.8 million, mainly due to a strategic reduction in advertising and a focus on promoting free reading[14] Expenses and Financial Position - Selling and distribution expenses increased by 20.4% from RMB 153.7 million to RMB 185.0 million, representing approximately 30.6% of total revenue for the year ended December 31, 2024[22] - Administrative expenses rose significantly by 69.5% from RMB 25.6 million to RMB 43.3 million, primarily due to increased listing expenses[23] - Gross profit decreased by 1.5% from RMB 259.7 million to RMB 255.8 million, with the gross margin declining from 46.5% to 42.3% due to the increased contribution from lower-margin digital marketing services[18] - Research and development expenses for 2024 amounted to RMB 36.1 million, focusing on enhancing AI recommendation technology[6] Assets and Liabilities - Total assets increased by 34.7% from RMB 505.4 million as of December 31, 2023, to RMB 680.8 million as of December 31, 2024[30] - Total liabilities rose by 86.4% from RMB 126.1 million to RMB 235.1 million, primarily due to increased bank borrowings[30] - Current assets increased by 43.7% from RMB 399.9 million to RMB 574.7 million, while current liabilities increased by 89.9% from RMB 121.7 million to RMB 231.2 million[31] - Trade receivables grew by 39.0% from RMB 161.5 million to RMB 224.6 million, attributed to increased digital marketing service revenue and extended credit terms[32] - Cash and cash equivalents increased by 80.6% from RMB 89.1 million to RMB 160.8 million, mainly due to proceeds from a global offering and increased bank borrowings[43] Future Plans and Investments - The company plans to expand its overseas market presence, particularly in digital content recommendation and online game publishing, targeting European and American users[12] - The company aims to enhance its AI technology applications in digital marketing, improving advertising efficiency and accuracy[11] - Future development will focus on AIGC technology, exploring its applications in advertising, literature creation, and voice generation[10] - The company aims to increase its user base on the digital reading platform, allocating 10% of the net proceeds (HKD 4.1 million) for this purpose, with no funds yet utilized[53] - The company plans to expand its digital marketing services, allocating 10% of the net proceeds (HKD 4.1 million) to establish partnerships with new media channels[53] Corporate Governance and Compliance - The company has adhered to all applicable corporate governance code provisions since its listing date, except for the separation of the roles of Chairman and CEO, which are both held by Mr. Wang Xi[92] - The Audit Committee has reviewed the group's financial performance for the year ending December 31, 2024, confirming compliance with applicable accounting standards and sufficient disclosures[95] - Ernst & Young has verified that the financial figures for the year ending December 31, 2024, align with the group's consolidated financial statements, although their work does not constitute an audit service[96] - The company will continue to regularly review and monitor its corporate governance practices to ensure compliance with the corporate governance code[93] Shareholder Information - The company did not recommend a final dividend for the year ending December 31, 2024, consistent with 2023[90] - The average number of ordinary shares issued increased to 322,547,094 in 2024 from 286,404,599 in 2023[83] - The company raised approximately HKD 40.70 million from the global offering, issuing 14,802,500 shares at HKD 5.80 per share[51]

Revenue and Profitability - Revenue for the six months ended June 30, 2024, was RMB 277.8 million, an increase of 13.3% from RMB 245.1 million in the same period of 2023[9]. - Gross profit for the same period was RMB 114.8 million, slightly down from RMB 116.0 million year-on-year[9]. - Profit before tax was RMB 5.2 million, a significant improvement from a loss of RMB 14.6 million in the prior year[9]. - The company reported a profit for the period of RMB 3.4 million, compared to a loss of RMB 12.8 million in the previous year[9]. - Adjusted profit for the period was RMB 17.7 million, recovering from a loss of RMB 2.9 million in the same period last year[9]. - Revenue increased by 13.4% from RMB 245.1 million for the six months ended June 30, 2023, to RMB 277.8 million for the six months ended June 30, 2024, driven by growth in digital marketing services, online games publishing, and other digital content services[26]. - Revenue from digital marketing services increased by 28.9% from RMB 121.5 million for the six months ended June 30, 2023, to RMB 156.6 million for the six months ended June 30, 2024, attributed to a rebound in advertising demand[26]. - The company reported a total comprehensive income for the period of RMB 2,055,000, recovering from a loss of RMB 14,777,000 in 2023[90]. User Engagement and Market Expansion - The cumulative registered users of Easou Reading products reached 45.4 million as of June 30, 2024, with an average monthly active user count of 26.3 million[14]. - Monthly paying users under the paid reading model were 22.3 thousand, representing a ratio of 0.1% to monthly active users[14]. - The company aims to explore the market potential of online reading and expand overseas markets, introducing new literary content formats such as short videos[17]. - The company plans to explore additional business opportunities to apply the Easou Recommendation Engine in other scenarios[3]. Research and Development - In the first half of 2024, the company invested RMB 17.6 million in R&D for intelligent recommendation technology[12]. - The company will continue to increase R&D investments to enhance the capabilities of the Easou AI Recommendation Engine, focusing on key projects including integrated intelligent recommendation systems and high-concurrency performance tuning[17]. - The company is investing 15.0% of net proceeds (HK$6.1 million) to enhance R&D capabilities for the Easou Recommendation Engine, expected to be utilized by the fourth quarter of 2027[55]. Financial Position and Assets - Total assets increased by 24.8% from RMB 505.4 million as of December 31, 2023, to RMB 630.8 million as of June 30, 2024, primarily due to increases in cash and cash equivalents, trade receivables, and financial assets[35]. - Total liabilities rose by 39.2% from RMB 126.1 million as of December 31, 2023, to RMB 175.5 million as of June 30, 2024, mainly due to increased bank borrowings and accruals[35]. - Total equity increased by 20.0% from RMB 379.3 million as of December 31, 2023, to RMB 455.3 million as of June 30, 2024[35]. - Cash and cash equivalents increased by 59.7% from RMB 89.1 million as of December 31, 2023, to RMB 142.3 million as of June 30, 2024, primarily due to proceeds from the Global Offering and increased bank borrowings[40]. Shareholder Structure and Corporate Governance - The company was listed on the Main Board of the Stock Exchange on June 7, 2024, issuing 14,802,500 ordinary shares at an offer price of HK$5.80 per share, resulting in net proceeds of approximately HK$40.70 million[53]. - The company holds a 32.49% interest in its issued share capital through Mr. Wang, the founder of a discretionary trust[61]. - The roles of the chairman and the chief executive officer are performed by the same individual, Mr. Wang, which the Board believes enhances responsiveness and effectiveness[47]. - The company aims to maintain a high level of corporate governance and has complied with all applicable code provisions since the Listing Date[47]. Cost Management - Cost of sales increased by 26.4% from RMB 129.0 million for the six months ended June 30, 2023, to RMB 163.1 million for the six months ended June 30, 2024, primarily due to rising costs in digital marketing services[27]. - Selling and distribution expenses decreased by 8.1% from RMB 74.8 million to RMB 68.8 million, accounting for approximately 30.5% and 24.8% of total revenue for the respective periods[32]. - Administrative expenses increased by 15.9% from RMB 19.9 million to RMB 23.1 million, primarily due to higher listing expenses, representing about 8.1% and 8.3% of total revenue[34]. Strategic Initiatives and Future Plans - The company plans to launch two additional card games overseas in the second half of 2024, following the launch of one card game in the first half[21]. - The company will leverage the Easou Recommendation Engine to expand the scale of its digital marketing services through its proprietary advertising platform, Win Ads[18]. - The company is actively exploring recommendation scenarios for other digital content types, including music and videos, to achieve new business growth points[24]. - The company aims to relaunch online games publishing services in overseas markets, with 15.0% of net proceeds (HK$6.1 million) expected to be utilized by the third quarter of 2026[57]. Compliance and Reporting - The Audit Committee has reviewed the Group's 2024 interim results and confirmed compliance with applicable accounting standards and requirements[51]. - The Group's financial information is presented in Renminbi (RMB) and all values are rounded to the nearest thousand (RMB'000) except when otherwise indicated[101]. - The accounting policies adopted in the preparation of the unaudited interim condensed consolidated financial information are consistent with those applied in the Group's annual consolidated financial statements for the year ended 31 December 2023[103].

Financial Performance - Revenue for the six months ended June 30, 2024, reached RMB 277.8 million, an increase of 13.3% compared to RMB 245.1 million in the same period of 2023[1] - Gross profit for the same period was RMB 114.8 million, slightly down from RMB 116.0 million, resulting in a gross margin of approximately 41.3%[1] - The company reported a profit before tax of RMB 5.2 million, a significant turnaround from a loss of RMB 14.6 million in the previous year[1] - The company reported a net profit of RMB 3.4 million for the six months ended June 30, 2024, compared to a net loss of RMB 12.8 million in the same period of 2023[39] - The group reported a pre-tax profit of RMB 18,007,000 for the six months ended June 30, 2024, compared to RMB 18,921,000 for the same period in 2023, indicating a decrease of 4.8%[53] - The company’s net profit attributable to ordinary shareholders for the six months ended June 30, 2024, was RMB 3,385,000, compared to a loss of RMB 12,856,000 for the same period in 2023[58] Revenue Breakdown - Digital marketing services generated revenue of RMB 156.6 million, reflecting a year-on-year growth of 28.9%[3] - Revenue from digital marketing services rose by 28.9% from RMB 121.5 million to RMB 156.6 million, attributed to a rebound in advertising demand from clients[10] - Revenue from online game publishing services increased by 25.1% from RMB 4.2 million to RMB 5.3 million, mainly due to new games launched overseas[10] - Revenue from other digital content services surged by 125.5% from RMB 4.5 million to RMB 10.1 million, driven by increased promotion of music and video digital content services[10] - Revenue from other digital content services grew by 125.5% year-on-year, reaching RMB 10.1 million[3] User Engagement - Cumulative registered users for the E-Sou reading products reached 45.4 million, with average monthly active users at 26.3 million[2] - The company aims to increase its user base for digital reading services by 10.0%, which corresponds to RMB 4.1 million of the net proceeds, expected by Q3 2026[37] Cost and Expenses - Total sales costs increased by 26.4% from RMB 129.0 million to RMB 163.1 million, primarily due to rising costs in digital marketing services[11] - Selling and distribution expenses decreased by 8.1% from RMB 74.8 million to RMB 68.8 million, representing approximately 30.5% and 24.8% of total revenue for the respective periods[14] - Administrative expenses increased by 15.9% from RMB 19.9 million to RMB 23.1 million, accounting for about 8.1% and 8.3% of total revenue for the respective periods[15] - R&D expenses decreased by 7.7% from RMB 19.0 million to RMB 17.6 million, representing approximately 7.8% and 6.3% of total revenue for the respective periods[16] Assets and Liabilities - Total assets increased by 24.8% from RMB 505.4 million as of December 31, 2023, to RMB 630.8 million as of June 30, 2024, driven by increases in cash and cash equivalents, trade receivables, and financial assets[18] - Current assets increased by 32.8% from RMB 399.9 million as of December 31, 2023, to RMB 531.0 million as of June 30, 2024, while current liabilities increased by 40.6%[19] - Trade receivables rose by 27.2% from RMB 161.5 million as of December 31, 2023, to RMB 205.5 million as of June 30, 2024, mainly due to increased revenue from digital marketing services[20] - Cash and cash equivalents increased by 59.7% from RMB 89.1 million as of December 31, 2023, to RMB 142.3 million as of June 30, 2024, primarily due to funds raised from a global offering and increased bank borrowings[27] - Total liabilities increased to RMB 175,516 thousand from RMB 126,097 thousand, indicating a rise of approximately 39.2%[41] Financing and Investments - Financing costs decreased by 35.5% from RMB 2.9 million for the six months ended June 30, 2023, to RMB 1.9 million for the same period in 2024, primarily due to a decline in bank borrowing rates[17] - The company plans to allocate 15.0% of the net proceeds from its global offering, approximately RMB 6.1 million, to enhance its R&D capabilities by improving its recommendation engine technology by Q4 2027[36] - The company plans to expand its digital marketing services, allocating 10.0% of the net proceeds, approximately RMB 4.1 million, to establish partnerships with new media channels by Q3 2026[37] Corporate Governance and Compliance - The company has complied with all applicable corporate governance codes since its listing date[64] - The audit committee has reviewed the interim results and confirmed compliance with applicable accounting standards[66] - The financial data for the six months ended June 30, 2024, is prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with applicable disclosure requirements[43] Other Information - The company was listed on the Hong Kong Stock Exchange on June 7, 2024[9] - The company has not made any significant acquisitions or disposals of subsidiaries or joint ventures as of June 30, 2024[34] - There were no significant events that could materially affect the company after the reporting period[62] - The group did not recommend any interim dividend for the six months ended June 30, 2024, consistent with the previous year[57]