香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不對因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的 任 何 損 失 承 擔 任 何 責 任。 HealthyWay Inc. 健康之路股份有限公司 （於 開 曼 群 島 註 冊 成 立 之 有 限 公 司） （股 份 代 號：2587） 持續關連交易 科普內容合作協議 科普內容合作協議 茲提述本公司於2024年12月18日 刊 發 的 招 股 章 程，內 容 有 關2024年 科 普 內 容 合 作 協 議。由 於2024年科普內容合作協議的期限 於2024年12月 31日 屆 滿，本 公司於2024年12月27日 訂 立2025年 科 普 內 容 合 作 協 議，以 於 自2025年1月1日起至2025年12月31日 止 的 期 間 內，繼 續 向 百 度 提 供 科 普 內 容。 董 事 會 最 近 注 意 到，截 至2025年12月31日 止 年 度，2025年科普內容合作 協議項下的交易總額已超過3百 萬 港 元。 上市 ...

Corporate Information This section provides an overview of the company's governance structure, key personnel, and essential contact details [Board of Directors Composition](index=3&type=section&id=Board%20of%20Directors) The Board comprises executive, non-executive, and independent non-executive directors, chaired by Mr. Zhang Wanneng; a non-executive director resigned in July 2025 - Executive Directors include Mr. Zhang Wanneng (Chairman and CEO) and Mr. Chen Jing[5](index=5&type=chunk) - Non-executive Directors include Mr. Chen Yong (resigned on July 11, 2025) and Mr. Zhang Xiangming[5](index=5&type=chunk) - Independent Non-executive Directors include Mr. Xu Jing, Dr. Lu Tao, and Ms. Deng Xiaolan[5](index=5&type=chunk) [Committees and Key Personnel](index=3&type=section&id=Committees%20and%20Key%20Personnel) The company has Audit, Remuneration, and Nomination Committees, all chaired by independent non-executive directors, with changes in joint company secretaries - The Audit Committee is chaired by Mr. Xu Jing, while the Remuneration Committee and Nomination Committee are both chaired by Dr. Lu Tao[5](index=5&type=chunk)[6](index=6&type=chunk) - Mr. Chen Zhoufeng was appointed Joint Company Secretary on March 28, 2025, with Mr. Li Guomin resigning on the same day[6](index=6&type=chunk)[7](index=7&type=chunk) [Company Information and Contacts](index=4&type=section&id=Company%20Information%20and%20Contacts) The company disclosed details of its compliance advisor, auditor, legal counsel, registered office, principal business addresses, and main bankers - The compliance advisor is Smart Rich Finance Limited, and the auditor is KPMG[9](index=9&type=chunk)[10](index=10&type=chunk) - The company is registered in the Cayman Islands, with its principal place of business in Hong Kong at 4/F, Hua Yuan Building, 149 Queen's Road Central, and its China headquarters in Fuzhou Software Park[9](index=9&type=chunk)[10](index=10&type=chunk)[11](index=11&type=chunk) - Principal bankers include China Merchants Bank Fuzhou Branch, Industrial Bank Fuzhou Global Sub-branch, and CMB Wing Lung Bank Limited[12](index=12&type=chunk)[13](index=13&type=chunk) Management Discussion and Analysis This section reviews the company's operational performance, financial results, balance sheet items, liquidity, treasury policies, and future outlook [Business Review](index=6&type=section&id=Business%20Review) The company expanded its user and doctor base in H1 2025, with stable enterprise services, but digital marketing and medical support faced challenges - As of June 30, 2025, registered individual users increased to **211.8 million** (end of 2024: 205.5 million), registered doctors to **905,000** (end of 2024: 889,000), and connected hospitals to **12,161** (end of 2024: 11,762)[17](index=17&type=chunk)[19](index=19&type=chunk) - Page views for popular science content services decreased from **400 million** in H1 2024 to **250 million** in H1 2025[18](index=18&type=chunk)[20](index=20&type=chunk) - The number of clients for precision content services increased from **9 pharmaceutical companies** in H1 2024 to **16 pharmaceutical companies and 6 other entities** in H1 2025[18](index=18&type=chunk)[20](index=20&type=chunk) - The number of clients for RWS support services increased from **30 pharmaceutical companies** in H1 2024 to **48 pharmaceutical companies and 6 other entities** in H1 2025[18](index=18&type=chunk)[20](index=20&type=chunk) - The number of paying enterprise and institutional clients for digital marketing services decreased from **570** at the end of 2024 to **353** as of June 30, 2025, primarily due to economic downturn[21](index=21&type=chunk)[23](index=23&type=chunk) - Individual clients for the health membership program decreased from **6.5 million** in H1 2024 to **5.9 million** in H1 2025, and enterprise clients decreased from **164** to **133**[22](index=22&type=chunk)[23](index=23&type=chunk) - Online medical consultations decreased from **1.8 million** in H1 2024 to **1.4 million** in H1 2025[22](index=22&type=chunk)[23](index=23&type=chunk) [Financial Review](index=8&type=section&id=Financial%20Review) The company achieved a net profit of **RMB 7.0 million** in H1 2025, turning around from a loss, primarily due to cost control and the impact of redeemable liability changes Revenue Comparison for H1 2025 vs. H1 2024 | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change Rate | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | 517,852 | 611,485 | -15.3% | Decrease in content services, value-based medical services, and digital marketing services revenue | | Health and Medical Services | 104,638 | 122,829 | -14.8% | Decrease in pharmaceutical sales and comprehensive health and medical service packages revenue | | Enterprise Services and Digital Marketing Services | 413,059 | 488,539 | -15.5% | Decrease in content services and digital marketing services revenue | | Others | 155 | 117 | +32.5% | - | Cost and Profit Comparison for H1 2025 vs. H1 2024 | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change Rate | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Cost of Sales | 356,118 | 427,824 | -16.8% | Consistent with revenue decrease | | Gross Profit | 161,734 | 183,661 | -11.9% | Decrease in revenue | | Gross Profit Margin | 31.2% | 30.0% | +1.2% | Impacted by business mix, pricing policies, and cost structure | | Other Net Income | 1,161 | 455 | +155.2% | Increase in interest income and government grants, partially offset by exchange losses | | Selling Expenses | 87,249 | 98,576 | -11.6% | Decrease in marketing activities and health membership program promotion expenses | | Administrative Expenses | 26,256 | 29,097 | -9.6% | Decrease in office and third-party service expenses, partially offset by increased staff costs | | Research and Development Costs | 37,386 | 53,968 | -30.7% | Completion of AI disease prediction platform and other products, decrease in technical service fees | | Finance Costs | 1,358 | 2,321 | -39.1% | Repayment of certain bank loans and borrowings | | Change in Fair Value of Redeemable Liabilities | 0 | 62,989 | -100% | Preferential rights terminated due to listing, reclassified to equity | | Profit/(Loss) Before Taxation | 10,498 | (63,150) | N/A | Turnaround to profit | | Income Tax | 3,458 | (5,875) | N/A | Turnaround from loss to profit, reversal of deferred tax assets | | Net Profit/(Loss) | 7,040 | (57,275) | N/A | Turnaround to profit | | Basic Earnings/(Loss) Per Share | 0.01 | (0.08) | N/A | Turnaround to profit | | Diluted Earnings/(Loss) Per Share | 0.01 | (0.08) | N/A | Turnaround to profit | [Discussion of Selected Items in the Consolidated Statement of Financial Position](index=12&type=section&id=Discussion%20of%20Selected%20Items%20in%20the%20Consolidated%20Balance%20Sheet) Net current assets slightly decreased, but total net assets increased; inventories, receivables, and intangible assets grew, while prepayments and payables decreased Comparison of Selected Balance Sheet Items as of June 30, 2025, vs. December 31, 2024 | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change Rate | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Net Current Assets | 103,508 | 114,400 | -9.5% | Decrease in cash and cash equivalents, prepayments, and other financial assets, partially offset by a decrease in trade and other payables | | Inventories | 9,390 | 7,096 | +32.3% | Unrecognized revenue from content services, capitalization of related contract fulfillment costs | | Trade and Other Receivables | 158,102 | 144,208 | +9.6% | Extension of payment terms for certain customers | | Prepayments | 14,959 | 27,450 | -45.5% | Decrease in prepayments to suppliers after strategic discussions | | Trade and Other Payables | 177,508 | 208,562 | -14.9% | Consistent with the decrease in cost of sales | | Contract Liabilities | 56,002 | 58,015 | -3.5% | Remained relatively stable | | Loans and Borrowings (Current) | 54,416 | 55,502 | -2.0% | Repayment of certain loans and borrowings | | Net Assets | 240,166 | 231,800 | +3.6% | - | | Property, Plant and Equipment | 6,663 | 8,660 | -23.0% | Depreciation | | Intangible Assets | 99,020 | 81,272 | +21.8% | Recognition of R&D achievements as intangible assets | | Goodwill | 8,605 | 8,605 | 0% | Remained stable | - As of June 30, 2025, the company had no significant contingent liabilities[66](index=66&type=chunk)[72](index=72&type=chunk) [Liquidity and Financial Resources](index=14&type=section&id=Liquidity%20and%20Financial%20Resources) Cash and cash equivalents decreased, with investing outflows for R&D capitalization and financing outflows for loan repayments; the gearing ratio remained stable Cash Flow Comparison for H1 2025 vs. H1 2024 | Indicator | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change Rate | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | 34,670 | 13,030 | +166.1% | - | | Net Cash Used in Investing Activities | (52,344) | (18,578) | +181.8% | Expenses related to the recognition of R&D achievements as intangible assets | | Net Cash Used in Financing Activities | (11,130) | (13,409) | -17.0% | Repayment of bank loans and payment of listing fees | | Net Decrease in Cash and Cash Equivalents | (28,804) | (18,957) | +52.0% | - | | Cash and Cash Equivalents at June 30 | 231,425 | 149,736 | +54.6% | - | - As of June 30, 2025, total bank loans and borrowings amounted to **RMB 54.7 million** (end of 2024: RMB 56.4 million), with **RMB 54.4 million** repayable within one year[79](index=79&type=chunk)[81](index=81&type=chunk) - All loans and borrowings are denominated in RMB, with fixed annual interest rates ranging from **3.35% to 14.65%** (June 30, 2024: 3.80% to 11.70%)[79](index=79&type=chunk)[81](index=81&type=chunk) - The gearing ratio remained relatively stable at **57%** as of June 30, 2025 (December 31, 2024: 60%)[80](index=80&type=chunk)[81](index=81&type=chunk) [Treasury Policies and Foreign Exchange Exposure](index=15&type=section&id=Treasury%20Policies%20and%20Foreign%20Exchange%20Exposure) The company maintains prudent treasury policies, focusing on capital preservation; a net exchange loss was recorded, but no major liquidity issues or hedging occurred - Long-term investment objectives are to invest in or acquire businesses complementary to its operations, while short-term investments focus on highly liquid, low-risk financial instruments[82](index=82&type=chunk)[86](index=86&type=chunk) - A net exchange loss of **RMB 1.65 million** was recorded during the reporting period (H1 2024: RMB 0.46 million)[83](index=83&type=chunk)[86](index=86&type=chunk) - The company did not hedge foreign currency risks and did not encounter significant liquidity issues due to exchange rate fluctuations[83](index=83&type=chunk)[86](index=86&type=chunk) [Employees and Remuneration Policies](index=15&type=section&id=Employees%20and%20Remuneration%20Policies) The company employs **400 staff** in China, offering competitive remuneration and training, and maintained good labor relations during the reporting period - As of June 30, 2025, the company had **400 employees**, all based in China[84](index=84&type=chunk)[87](index=87&type=chunk) - Remuneration policies include basic salaries and performance-based bonuses, which are regularly reviewed and improved to maintain competitiveness[85](index=85&type=chunk)[87](index=87&type=chunk) - The company provides internal training, including mandatory and recommended courses, to enhance employee skills and knowledge[89](index=89&type=chunk)[94](index=94&type=chunk) - No strikes, labor disputes, or industrial actions with a significant impact on operations occurred during the reporting period[90](index=90&type=chunk)[95](index=95&type=chunk) [Outlook](index=16&type=section&id=Outlook) The company expects to improve financial performance through monetization of pharmaceutical sales, content, and IT services, and plans to deepen doctor engagement, maintaining cautious optimism - Plans to improve financial performance and profitability through the monetization of pharmaceutical sales, content services, and information technology services[91](index=91&type=chunk)[96](index=96&type=chunk) - Will deepen connections with more doctors and integrate their medical services onto the platform to be in a more favorable position in the pharmaceutical sales business[91](index=91&type=chunk)[96](index=96&type=chunk) - By expanding cooperation with doctors, aims to acquire broader real-world clinical data to provide pharmaceutical companies with drug research insights[92](index=92&type=chunk)[96](index=96&type=chunk) - Despite challenging market conditions, the company remains cautiously optimistic about its business prospects[93](index=93&type=chunk)[97](index=97&type=chunk) Other Information This section covers directors' and substantial shareholders' interests, share schemes, securities transactions, corporate governance, dividends, use of proceeds, and contractual arrangements [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares, and Debentures](index=17&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions) Directors and the chief executive held long positions in company shares and associated corporations, primarily through controlled entities, as of June 30, 2025 Directors' Long Positions in the Company's Ordinary Shares (as of June 30, 2025) | Director's Name | Nature of Interest | Number of Shares Held/Interested | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Zhang Wanneng | Interest in controlled corporation | 295,915,335 | 33.71% | | Mr. Chen Yong | Interest in controlled corporation | 91,530,500 | 10.43% | | Mr. Chen Jing | Interest in controlled corporation | 42,774,900 | 4.87% | - Mr. Zhang Wanneng holds shares through Fengji Limited, which is wholly owned by him[109](index=109&type=chunk) - Mr. Chen Yong holds shares through Jiaman Group Investment Limited, which is wholly owned by him[109](index=109&type=chunk) - Mr. Chen Jing holds approximately **43.06%** equity interest in Yuanjing Co., Ltd. and is deemed to be interested in all shares held by it[102](index=102&type=chunk)[105](index=105&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in the Company's Shares and Underlying Shares](index=20&type=section&id=Substantial%20Shareholders'%20and%20Other%20Persons'%20Interests%20and%20Short%20Positions) Substantial shareholders, excluding directors, held long positions in the company's ordinary shares, including Fengji, Baidu (Hong Kong), Jiaman Group, and Meiyi Limited Substantial Shareholders' Long Positions in the Company's Ordinary Shares (as of June 30, 2025) | Substantial Shareholder Name/Entity | Nature and Capacity of Interest | Number of Shares Held/Interested | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Fengji Limited | Beneficial owner | 295,915,335 | 33.71% | | Baidu (Hong Kong) Limited | Beneficial owner | 106,245,100 | 12.11% | | Jiaman Group Investment Limited | Beneficial owner | 91,530,500 | 10.43% | | Meiyi Limited | Beneficial owner | 81,012,500 | 9.23% | - Baidu (Hong Kong) Limited is a wholly-owned subsidiary of Baidu Holdings Limited[118](index=118&type=chunk)[119](index=119&type=chunk) - Meiyi Limited is wholly owned by Mr. Zhang Wande, the brother of Mr. Zhang Wanneng[118](index=118&type=chunk)[119](index=119&type=chunk) [Directors' Rights to Acquire Shares or Debentures](index=19&type=section&id=Directors'%20Rights%20to%20Acquire%20Shares%20or%20Debentures) No rights to acquire company shares or debentures were granted to or exercised by directors, their spouses, or minor children during the reporting period - During the reporting period, no rights to acquire benefits by acquiring shares or debentures of the company were granted to any director or their respective spouses or minor children, nor were any such rights exercised[112](index=112&type=chunk)[113](index=113&type=chunk) [Share Scheme](index=21&type=section&id=Share%20Scheme) The company has not adopted any share scheme under Chapter 17 of the Listing Rules - The company has not adopted any share scheme under Chapter 17 of the Listing Rules[122](index=122&type=chunk)[125](index=125&type=chunk) [Directors' Securities Transactions](index=21&type=section&id=Directors'%20Securities%20Transactions) The company adopted the Model Code for directors' securities transactions, and all directors confirmed compliance during the reporting period - The company has adopted the Model Code set out in Appendix C3 of the Listing Rules as its own code of conduct for directors' securities transactions[123](index=123&type=chunk)[126](index=126&type=chunk) - All directors have confirmed their compliance with the required standards set out in the Model Code during the reporting period[123](index=123&type=chunk)[126](index=126&type=chunk) [Changes in Directors' Information](index=21&type=section&id=Changes%20in%20Directors'%20Information) Mr. Chen Yong resigned as a non-executive director on July 11, 2025, due to personal matters, confirming no disagreement with the Board - Mr. Chen Yong resigned as a non-executive director, effective July 11, 2025, to focus on family and other personal matters[124](index=124&type=chunk)[127](index=127&type=chunk) - Mr. Chen confirmed that he had no disagreement with the Board and that there were no matters relating to his resignation that needed to be brought to the attention of shareholders and the Stock Exchange[124](index=124&type=chunk)[127](index=127&type=chunk) [Audit Committee](index=22&type=section&id=Audit%20Committee) The Audit Committee, chaired by Mr. Xu Jing, reviewed the group's accounting principles, internal controls, and interim financial statements - The Audit Committee comprises Mr. Xu Jing (Chairman), Ms. Deng Xiaolan, and Mr. Zhang Xiangming[128](index=128&type=chunk)[133](index=133&type=chunk) - The Committee has reviewed and discussed the group's accounting principles, practices, audit, internal controls, and financial reporting matters, as well as the unaudited consolidated interim financial statements for the six months ended June 30, 2025[129](index=129&type=chunk)[133](index=133&type=chunk) [Compliance with the Code on Corporate Governance Practices](index=22&type=section&id=Compliance%20with%20the%20Code%20on%20Corporate%20Governance%20Practices) The company generally complies with the Corporate Governance Code, but the Chairman and CEO roles are combined, an arrangement the Board deems beneficial - The company's corporate governance practices have complied with the Corporate Governance Code, but there is a deviation from Code Provision C.2.1 (roles of Chairman and Chief Executive should be separate)[130](index=130&type=chunk)[131](index=131&type=chunk)[134](index=134&type=chunk)[135](index=135&type=chunk) - Mr. Zhang Wanneng serves concurrently as Chairman and Chief Executive Officer, an arrangement the Board believes benefits group management, with senior management and the Board effectively monitoring and balancing his powers[132](index=132&type=chunk)[135](index=135&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk) - The Board will continue to review and consider separating the roles of Chairman and Chief Executive Officer at appropriate and suitable times[138](index=138&type=chunk)[141](index=141&type=chunk) [Interim Dividend](index=23&type=section&id=Interim%20Dividend) The Board does not recommend declaring an interim dividend for the six months ended June 30, 2025 - The Board does not recommend declaring an interim dividend for the six months ended June 30, 2025 (2024: nil)[139](index=139&type=chunk)[142](index=142&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=23&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities during the reporting period - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[143](index=143&type=chunk) [Use of Proceeds](index=24&type=section&id=Use%20of%20Proceeds) Net proceeds from the December 2024 global offering (HKD 109.4 million) were utilized consistent with the prospectus for business expansion, R&D, and working capital - The company's shares were listed on the Main Board of the Stock Exchange of Hong Kong on December 30, 2024[144](index=144&type=chunk)[146](index=146&type=chunk) - The total net proceeds from the global offering amounted to approximately **HKD 109.4 million** (approximately RMB 101.25 million)[144](index=144&type=chunk)[146](index=146&type=chunk) Intended Use of Net Proceeds and Utilization as of June 30, 2025 | Intended Use | Allocation of Net Proceeds (HKD million) | Net Proceeds Utilized as of June 30, 2025 (HKD million) | Unutilized Net Proceeds as of June 30, 2025 (HKD million) | Expected Timeline for Utilization of Net Proceeds | | :--- | :--- | :--- | :--- | :--- | | Business Expansion | 66.19 | 0.36 | 65.83 | Before December 2027 | | Strategic Investments or Acquisitions | 22.97 | 0 | 22.97 | Before December 2027 | | Research and Development | 15.86 | 0.19 | 15.67 | Before December 2027 | | Working Capital and General Corporate Purposes | 4.38 | 0 | 4.38 | Before December 2027 | | **Total** | **109.4** | **0.55** | **108.85** | | [Significant Investments, Material Acquisitions and Disposals, and Future Plans for Material Investments or Capital Assets](index=25&type=section&id=Significant%20Investments%2C%20Material%20Acquisitions%20and%20Disposals%2C%20and%20Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) The company held no significant investments, nor undertook material acquisitions or disposals; no other major investment plans were authorized as of the report date - The company held no significant investments during the reporting period, nor did it undertake any material acquisitions or disposals concerning subsidiaries, associates, and joint ventures, or any pledging of group assets during the period[148](index=148&type=chunk)[151](index=151&type=chunk) - As of the date of this report, there were no other significant investment or capital asset acquisition plans authorized by the Board[148](index=148&type=chunk)[151](index=151&type=chunk) [Compliance with the Contractual Arrangements](index=25&type=section&id=Compliance%20with%20the%20Contractual%20Arrangements) The Group complied with contractual arrangements and the Foreign Investment Law, with no material changes during the reporting period - During the reporting period, the Group complied with the contractual arrangements disclosed in the "Contractual Arrangements" section of the prospectus and the Foreign Investment Law of the People's Republic of China and its accompanying explanations[149](index=149&type=chunk)[152](index=152&type=chunk) - The Group will continue to monitor the latest developments in the Foreign Investment Law and its accompanying explanations and promptly update on the latest regulatory developments[149](index=149&type=chunk)[152](index=152&type=chunk) - There were no material changes concerning the structured contracts and contractual arrangements during the reporting period[150](index=150&type=chunk)[153](index=153&type=chunk) Review Report This section presents KPMG's review report on the interim financial information, outlining the scope and conclusion of their limited assurance engagement [Introduction and Scope of Review](index=26&type=section&id=Introduction%20and%20Scope%20of%20Review) KPMG reviewed the interim financial report for H1 2025 per HKSRS 2410; the scope is less than an audit, thus no audit opinion is expressed - KPMG has reviewed the interim financial report for the six months ended June 30, 2025, which complies with International Accounting Standard 34 "Interim Financial Reporting"[155](index=155&type=chunk)[158](index=158&type=chunk) - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410, with a scope substantially less than an audit, thus no audit opinion is expressed[157](index=157&type=chunk)[160](index=160&type=chunk) [Conclusion](index=27&type=section&id=Conclusion) The review found no matters indicating the interim financial report as of June 30, 2025, was not prepared in all material respects per IAS 34 - Based on the review, nothing has come to our attention that causes us to believe the interim financial report as of June 30, 2025, is not prepared in all material respects in accordance with International Accounting Standard 34 "Interim Financial Reporting"[161](index=161&type=chunk)[162](index=162&type=chunk) Consolidated Statement of Profit or Loss The company achieved a net profit of **RMB 7.04 million** in H1 2025, turning around from a loss, primarily due to cost control and the impact of redeemable liability changes Key Data from Consolidated Statement of Profit or Loss (for the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Revenue | 517,852 | 611,485 | -15.3% | | Cost of Sales | (356,118) | (427,824) | -16.8% | | Gross Profit | 161,734 | 183,661 | -11.9% | | Other Net Income | 1,161 | 455 | +155.2% | | Selling Expenses | (87,249) | (98,576) | -11.6% | | Administrative Expenses | (26,256) | (29,097) | -9.6% | | Research and Development Costs | (37,386) | (53,968) | -30.7% | | Operating Profit | 12,004 | 2,475 | +385.0% | | Finance Costs | (1,358) | (2,321) | -41.5% | | Share of Profit less Loss of Associates | (148) | (315) | -53.0% | | Change in Carrying Value of Redeemable Liabilities | – | (62,989) | -100.0% | | Profit/(Loss) Before Taxation | 10,498 | (63,150) | N/A | | Income Tax | (3,458) | 5,875 | N/A | | Profit/(Loss) for the Period | 7,040 | (57,275) | N/A | | Profit/(Loss) Attributable to Equity Holders of the Company | 7,066 | (55,818) | N/A | | Non-controlling Interests | (26) | (1,457) | -98.2% | | Basic and Diluted Earnings/(Loss) Per Share (RMB) | 0.01 | (0.08) | N/A | Consolidated Statement of Profit or Loss and Other Comprehensive Income Total comprehensive income was **RMB 8.378 million** in H1 2025, a significant improvement from a loss, due to profit for the period and increased exchange differences Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income (for the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Profit/(Loss) for the Period | 7,040 | (57,275) | N/A | | Exchange Differences on Translation of Financial Statements of Overseas Entities | 1,338 | 470 | +184.7% | | Total Comprehensive Income for the Period | 8,378 | (56,805) | N/A | | Attributable to Equity Holders of the Company | 8,404 | (55,348) | N/A | | Non-controlling Interests | (26) | (1,457) | -98.2% | Consolidated Statement of Financial Position Net assets increased to **RMB 240.166 million** as of June 30, 2025, driven by intangible asset growth, while net current assets slightly decreased due to reduced cash Key Data from Consolidated Statement of Financial Position (as of June 30) | Indicator | 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | | **Non-current Assets** | | | | | Property, Plant and Equipment | 6,663 | 8,660 | -23.0% | | Intangible Assets | 99,020 | 81,272 | +21.8% | | Goodwill | 8,605 | 8,605 | 0.0% | | Interests in Associates | 3,060 | 3,208 | -4.6% | | Deferred Tax Assets | 22,797 | 20,300 | +12.3% | | **Current Assets** | | | | | Inventories | 9,390 | 7,096 | +32.3% | | Contract Assets | 62 | 111 | -44.1% | | Other Financial Assets | – | 5,549 | -100.0% | | Trade and Other Receivables | 158,102 | 144,208 | +9.6% | | Prepayments | 14,959 | 27,450 | -45.5% | | Restricted Deposits | 138 | 10,138 | -98.6% | | Cash and Cash Equivalents | 231,425 | 260,229 | -11.1% | | **Current Liabilities** | | | | | Trade and Other Payables | 177,508 | 208,562 | -14.9% | | Contract Liabilities | 56,002 | 58,015 | -3.5% | | Loans and Borrowings | 54,416 | 55,502 | -2.0% | | Lease Liabilities | 2,415 | 3,267 | -26.1% | | Current Taxation | 20,227 | 15,063 | +34.3% | | **Net Current Assets** | 103,508 | 114,372 | -9.5% | | **Non-current Liabilities** | | | | | Loans and Borrowings | 301 | 905 | -66.7% | | Lease Liabilities | 3,186 | 3,724 | -14.5% | | **Net Assets** | 240,166 | 231,788 | +3.6% | | **Total Equity** | 240,166 | 231,788 | +3.6% | Consolidated Statement of Changes in Equity Total equity increased to **RMB 240.166 million** as of June 30, 2025, primarily due to profit for the period and increased exchange reserves, offsetting accumulated losses Key Data from Consolidated Statement of Changes in Equity (for the six months ended June 30) | Indicator | As of January 1, 2025 (RMB thousands) | Changes for the six months ended June 30, 2025 (RMB thousands) | As of June 30, 2025 (RMB thousands) | | :--- | :--- | :--- | :--- | | Share Capital | 96 | – | 96 | | Share Premium | 265,946 | – | 265,946 | | Other Reserves | 2,550,745 | – | 2,550,745 | | Exchange Reserve | 23,803 | 1,338 | 25,141 | | Statutory Reserve | 1,417 | – | 1,417 | | Accumulated Losses | (2,615,242) | 7,066 | (2,608,176) | | **Total Attributable to Equity Holders of the Company** | **226,765** | **8,404** | **235,169** | | Non-controlling Interests | 5,023 | (26) | 4,997 | | **Total Equity** | **231,788** | **8,378** | **240,166** | Condensed Consolidated Cash Flow Statement Net cash from operating activities increased, but investing outflows for R&D capitalization grew, leading to a net decrease in cash; financing outflows were for loan repayments Key Data from Condensed Consolidated Cash Flow Statement (for the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | 34,670 | 13,030 | +166.1% | | Net Cash Used in Investing Activities | (52,344) | (18,578) | +181.8% | | Net Cash Used in Financing Activities | (11,130) | (13,409) | -17.0% | | Net Decrease in Cash and Cash Equivalents | (28,804) | (18,957) | +52.0% | | Cash and Cash Equivalents at January 1 | 260,229 | 168,693 | +54.3% | | Cash and Cash Equivalents at June 30 | 231,425 | 149,736 | +54.6% | - Net cash outflow from investing activities was primarily attributable to **RMB 50.7 million** for expenses related to the recognition of R&D achievements as intangible assets[78](index=78&type=chunk) - Net cash outflow from financing activities was primarily attributable to the repayment of bank loans of **RMB 24.9 million** and payment of listing fees of **RMB 6.4 million**[78](index=78&type=chunk) Notes to the Unaudited Interim Financial Report This section details the basis of preparation, changes in accounting policies, revenue and segment reporting, and specific financial statement items for the unaudited interim financial report [Basis of Preparation](index=35&type=section&id=Basis%20of%20Preparation) The interim financial report is prepared per HKEX Listing Rules and IAS 34, reviewed by KPMG, and adopts consistent accounting policies with 2024 annual statements - The interim financial report is prepared in accordance with the Listing Rules of the Stock Exchange of Hong Kong and International Accounting Standard 34 "Interim Financial Reporting"[180](index=180&type=chunk)[184](index=184&type=chunk) - The report is unaudited but has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[185](index=185&type=chunk)[189](index=189&type=chunk) - Except for changes in accounting policies expected to be reflected in the 2025 annual financial statements, the report adopts the same accounting policies as the 2024 annual financial statements[181](index=181&type=chunk)[184](index=184&type=chunk) [Changes in Accounting Policies](index=36&type=section&id=Changes%20in%20Accounting%20Policies) The Group applied IAS 21 amendments with no significant impact due to no relevant foreign currency transactions, and no new standards not yet effective were applied - The Group has applied the amendments to International Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability," but with no significant impact on this interim report[187](index=187&type=chunk)[190](index=190&type=chunk) - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period[188](index=188&type=chunk)[191](index=191&type=chunk) [Revenue and Segment Reporting](index=37&type=section&id=Revenue%20and%20Segment%20Reporting) The company's main businesses are enterprise and digital marketing services and health and medical services, with most revenue from mainland China; gross profit for both segments decreased - The Group's principal businesses are the provision of enterprise services and digital marketing services, and health and medical services[193](index=193&type=chunk)[194](index=194&type=chunk) Revenue Breakdown by Service Line (for the six months ended June 30) | Service Line | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Enterprise Services and Digital Marketing Services | 413,059 | 488,539 | | Health and Medical Services | 104,638 | 122,829 | | Others | 155 | 117 | | **Total** | **517,852** | **611,485** | Gross Profit by Reportable Segment (for the six months ended June 30) | Segment | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Enterprise Services and Digital Marketing Services | 133,049 | 148,164 | | Health and Medical Services | 28,559 | 35,401 | | Others | 126 | 96 | | **Total** | **161,734** | **183,661** | - The vast majority of the Group's revenue is derived from mainland China[200](index=200&type=chunk)[205](index=205&type=chunk) [Other Net Income](index=41&type=section&id=Other%20Net%20Income) Other net income significantly grew to **RMB 1.161 million** in H1 2025, driven by higher interest income and government grants, partially offset by net exchange losses Other Net Income Breakdown (for the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Government Grants | 432 | 316 | | Net Exchange Loss | (1,648) | (458) | | Interest Income | 2,511 | 611 | | Others | (134) | (14) | | **Total** | **1,161** | **455** | - Government grants are primarily for research and development activities and employee retention[212](index=212&type=chunk)[214](index=214&type=chunk) [Profit/(Loss) Before Taxation](index=41&type=section&id=Profit%2F%28Loss%29%20Before%20Taxation) The company achieved a profit before taxation of **RMB 10.498 million** in H1 2025, turning around from a loss, with reduced finance costs and increased intangible asset amortization Finance Costs Breakdown (for the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest on Bank Loans | 1,211 | 2,156 | | Interest on Lease Liabilities | 147 | 165 | | **Total** | **1,358** | **2,321** | Other Expenses Breakdown (for the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Depreciation – Owned Property, Plant and Equipment | 430 | 410 | | Depreciation – Right-of-use Assets | 1,931 | 2,111 | | Amortization of Intangible Assets | 32,950 | 12,569 | | Impairment Loss (Reversal)/Recognition on Trade and Other Receivables and Contract Assets | (308) | 132 | [Income Tax](index=42&type=section&id=Income%20Tax) Income tax expense was **RMB 3.458 million** in H1 2025, a shift from a credit, due to profit turnaround and deferred tax asset reversal; preferential rates apply to some subsidiaries Taxation in Consolidated Statement of Profit or Loss (for the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current Tax – Provision for the Period | 5,955 | 1,243 | | Deferred Tax – Origination and Reversal of Temporary Differences | (2,497) | (7,118) | | **Total** | **3,458** | **(5,875)** | - Mainland China subsidiaries are subject to a **25%** corporate income tax rate, but Fujian Health Road Information Technology Co., Ltd., as a high-tech enterprise, enjoys a preferential tax rate of **15%**[228](index=228&type=chunk) - Some subsidiaries, as "small low-profit enterprises," enjoy a lower corporate income tax rate of **20%**[226](index=226&type=chunk)[227](index=227&type=chunk) - Qualified R&D costs are eligible for an additional **100%** bonus deduction for income tax purposes[225](index=225&type=chunk)[227](index=227&type=chunk) [Earnings/(Loss) Per Share](index=44&type=section&id=Earnings%2F%28Loss%29%20Per%20Share) Basic and diluted earnings per share were **RMB 0.01** in H1 2025, a turnaround from a loss, with no potential dilutive ordinary shares - For the six months ended June 30, 2025, basic earnings per share were **RMB 0.01** (H1 2024: loss of RMB 0.08)[229](index=229&type=chunk)[232](index=232&type=chunk) - For the six months ended June 30, 2025, there were no potential dilutive ordinary shares, thus diluted earnings per share were the same as basic earnings per share[230](index=230&type=chunk)[233](index=233&type=chunk) [Intangible Assets](index=44&type=section&id=Intangible%20Assets) The Group's intangible assets are primarily software and datasets; acquisitions in H1 2025 cost **RMB 50.698 million**, a significant increase from the prior year - The Group's intangible assets primarily refer to software and datasets[231](index=231&type=chunk)[234](index=234&type=chunk) - For the six months ended June 30, 2025, the Group acquired intangible asset items at a cost of **RMB 50,698,000** (H1 2024: RMB 18,404,000)[231](index=231&type=chunk)[234](index=234&type=chunk) [Trade and Other Receivables](index=45&type=section&id=Trade%20and%20Other%20Receivables) Total trade and other receivables increased to **RMB 158.102 million** due to extended payment terms, with a shift in aging towards longer periods Aging Analysis of Trade and Other Receivables (as of June 30) | Item | 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 month | 85,642 | 105,781 | | Over 1 month but within 1 year | 38,691 | 11,482 | | Over 1 year but within 2 years | 804 | 2,261 | | Over 2 years but within 3 years | 420 | 247 | | Trade Receivables, net of loss allowance | 125,557 | 119,771 | | Amounts Due from Related Parties | 1,052 | 1,000 | | Deposits | 3,457 | 3,997 | | Other Receivables | 28,036 | 19,440 | | **Total** | **158,102** | **144,208** | [Cash and Cash Equivalents](index=45&type=section&id=Cash%20and%20Cash%20Equivalents) Cash and cash equivalents decreased to **RMB 231.425 million** as of June 30, 2025, with a significant increase in the proportion held in mainland China Cash and Cash Equivalents (as of June 30) | Item | 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank and Cash on Hand | 231,425 | 260,229 | - As of the end of the reporting period, cash and cash equivalents located in mainland China amounted to **RMB 175.452 million** (December 31, 2024: RMB 102.382 million)[238](index=238&type=chunk)[239](index=239&type=chunk) [Trade and Other Payables](index=46&type=section&id=Trade%20and%20Other%20Payables) Total trade and other payables decreased to **RMB 177.508 million**, consistent with lower cost of sales, with reductions across various payable categories Aging Analysis of Trade and Other Payables (as of June 30) | Item | 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 year | 112,920 | 121,545 | | Over 1 year but within 2 years | 315 | 109 | | Over 2 years but within 3 years | 64 | 103 | | Over 3 years | 159 | 144 | | Accounts Payable | 113,458 | 121,901 | | Amounts Due to Shareholders | 4,659 | 4,714 | | Salaries and Bonuses Payable | 20,045 | 25,006 | | Advances from Customers | 13,424 | 15,751 | | Other Payables | 25,922 | 41,190 | | **Total** | **177,508** | **208,562** | [Contract Liabilities](index=46&type=section&id=Contract%20Liabilities) Contract liabilities remained stable at **RMB 56.002 million** as of June 30, 2025, primarily representing deposits received for future services - Contract liabilities refer to deposits received by the Group before providing related services, primarily including health and medical services, and digital marketing and enterprise services[242](index=242&type=chunk)[243](index=243&type=chunk) Contract Liabilities (as of June 30) | Item | 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Contract Liabilities | 56,002 | 58,015 | [Loans and Borrowings](index=47&type=section&id=Loans%20and%20Borrowings) Total bank loans and borrowings decreased to **RMB 54.717 million**, mostly current and guaranteed by shareholders or subsidiary directors Loans and Borrowings Breakdown (as of June 30) | Item | 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Current Bank Loans – Secured | 54,416 | 55,502 | | Non-current Bank Loans – Secured | 301 | 905 | | **Total** | **54,717** | **56,407** | Bank Loan Repayment Schedule (as of June 30) | Repayment Period | 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 year or on demand | 54,416 | 55,502 | | After 1 year but within 2 years | 301 | 905 | | **Total** | **54,717** | **56,407** | - As of June 30, 2025, bank loans of **RMB 52.215 million** were guaranteed by a shareholder of the company, with the remaining **RMB 2.502 million** guaranteed by directors of subsidiaries[246](index=246&type=chunk) [Deferred Tax](index=48&type=section&id=Deferred%20Tax) Deferred tax assets increased to **RMB 22.797 million**, influenced by unused tax losses and intangible asset amortization; certain deferred tax assets and liabilities were not recognized Components and Movements of Deferred Tax Assets (as of June 30) | Item | As of January 1, 2025 (RMB thousands) | (Charged to)/Credited to Profit or Loss (RMB thousands) | As of June 30, 2025 (RMB thousands) | | :--- | :--- | :--- | :--- | | Credit Loss Provision | 444 | (235) | 209 | | Unused Tax Losses | 726 | 4,398 | 5,124 | | Deferred Income | 9,524 | (6,263) | 3,261 | | Promotion and Advertising Expenses | 3,100 | 1,522 | 4,622 | | Amortization of Intangible Assets | 6,430 | 3,082 | 9,512 | | Others | 76 | (7) | 69 | | **Total** | **20,300** | **2,497** | **22,797** | - The Group did not recognize deferred tax assets for accumulated tax losses of **RMB 6.985 million**, as future taxable profits are unlikely to be available[252](index=252&type=chunk)[255](index=255&type=chunk) - No deferred tax liability was recognized for withholding tax on undistributed profits of **RMB 23.495 million** from mainland China subsidiaries, as the company controls the dividend policy and no future distribution is expected[253](index=253&type=chunk)[256](index=256&type=chunk) [Capital, Reserves and Dividends](index=49&type=section&id=Capital%2C%20Reserves%20and%20Dividends) The directors do not recommend paying an interim dividend for the interim period ended June 30, 2025 - The directors do not recommend paying an interim dividend for the interim period (for the six months ended June 30, 2024: nil)[254](index=254&type=chunk)[257](index=257&type=chunk) [Material Related Party Transactions](index=50&type=section&id=Material%20Related%20Party%20Transactions) The company engaged in service and purchase transactions with Baidu Group and had balances with an associate; all transactions were unsecured, interest-free, and repayable on demand Material Related Party Transactions (for the six months ended June 30) | Transaction Type | Related Party | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | | Provision of Services to | Baidu Group | 3,489 | 7,963 | | Purchase of Goods and Services from | Baidu Group | 106 | 146 | | Prepayment to an Associate | Xiamen Zhongjian Xinlian | 850 | – | | Recovery from an Associate | Xiamen Zhongjian Xinlian | 850 | – | Material Balances with Related Parties (as of June 30) | Item | Related Party | 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | | Trade Receivables from Related Parties | Baidu Group | 1,295 | 1,186 | | Amounts Due from Related Parties | Xiamen Zhongjian Xinlian | 850 | 850 | | Amounts Due from Related Parties | Baidu Group | 50 | 50 | | Amounts Due to Shareholders | Mr. Zhang Wanneng | 674 | 682 | | Amounts Due to Shareholders | Fengji Limited | 3,985 | 4,032 | - All related party balances are unsecured, interest-free, and repayable on demand[266](index=266&type=chunk) - Shareholders provided guarantees for bank loans, with details disclosed in Note 13[267](index=267&type=chunk)[268](index=268&type=chunk)

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: 健康之路股份有限公司 呈交日期: 2025年9月2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) | 02587 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 2,500,000,000 | USD | | 0.00002 USD | | 50,000 | | 增加 / 減少 (-) | | | 0 | | | USD | | | | 本月底結存 | | | 2,500,000,000 | USD | | 0.00002 USD | | 50,000 | 本月底法定/註冊股本總額： USD 50,000 FF3 ...

Core Viewpoint - The company reported a 15.3% decrease in revenue to RMB 517.9 million for the six months ending June 30, 2025, but achieved a net profit of RMB 7.0 million compared to a net loss of RMB 57.3 million for the same period in 2024 [1] Revenue and Profit - Revenue decreased by 15.3% to RMB 517.9 million for the six months ending June 30, 2025 [1] - The company recorded a net profit of RMB 7.0 million for the same period, a significant improvement from a net loss of RMB 57.3 million in the previous year [1] Market Position and User Growth - The company maintained its market share and expanded its customer base during the reporting period [1] - The number of registered individual users increased from 205.5 million as of December 31, 2024, to 211.8 million as of June 30, 2025 [1] - The number of registered doctors rose from 889,000 to 905,000 during the same timeframe [1] - The number of hospitals connected to the company's platform increased from 11,762 to 12,161 [1]

Core Viewpoint - The company reported a decline in revenue for the first half of 2025, but achieved a profit for shareholders, contrasting with a loss in the previous year [1] Financial Performance - Revenue for the first half of 2025 was 518 million RMB, representing a year-on-year decrease of 15.3% [1] - The profit attributable to equity shareholders was 7.066 million RMB, compared to a loss of 55.818 million RMB in the same period last year [1] - Basic earnings per share were reported at 0.01 RMB [1]

Group 1 - The company reported a revenue of 518 million yuan for the first half of 2025, representing a year-on-year decline of 15.3% [1] - The profit attributable to equity shareholders was 7.066 million yuan, a significant improvement from a loss of 55.818 million yuan in the same period last year [1] - The basic earnings per share were 0.01 yuan [1]

[Company Overview and Financial Highlights](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E6%A6%82%E8%A7%88%E4%B8%8E%E8%B4%A2%E5%8A%A1%E4%BA%AE%E7%82%B9) [Company Information and Report Scope](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF%E4%B8%8E%E6%8A%A5%E5%91%8A%E8%8C%83%E5%9B%B4) HealthyWay Inc. announced its unaudited interim results for the six months ended June 30, 2025 - Company Name: **HealthyWay Inc.** `[2](index=2&type=chunk)` - Reporting Period: Six months ended **June 30, 2025** `[2](index=2&type=chunk)[3](index=3&type=chunk)` - Report Nature: Unaudited consolidated financial results announcement `[3](index=3&type=chunk)` [Financial Highlights at a Glance](index=1&type=section&id=%E8%B4%A2%E5%8A%A1%E4%BA%AE%E7%82%B9%E9%80%9F%E8%A7%88) The company's revenue decreased year-on-year, but gross profit margin improved, successfully turning losses into profits with significantly improved profit for the period Financial Highlights Comparison (Six Months Ended June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change | Change Rate | Remarks | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 517,852 | 611,485 | (93,633) | -15.3% | Revenue decreased | | Gross Profit | 161,734 | 183,661 | (21,927) | -11.9% | Gross profit decreased | | Gross Profit Margin | 31.2% | 30.0% | +1.2% | - | Gross profit margin improved | | Profit/(Loss) for the Period | 7,040 | (57,275) | +64,315 | Turned losses into profits | Significant improvement | [Consolidated Financial Statements](index=2&type=section&id=%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) [Consolidated Statement of Profit or Loss](index=2&type=section&id=%E7%BB%BC%E5%90%88%E6%8D%9F%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company achieved a net profit of RMB 7,040 thousand, a significant turnaround from a net loss of RMB 57,275 thousand in the prior year, driven by increased operating profit and the elimination of changes in the carrying amount of redeemable liabilities Key Data from Consolidated Statement of Profit or Loss (Six Months Ended June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 517,852 | 611,485 | (93,633) | -15.3% | | Cost of Sales | (356,118) | (427,824) | 71,706 | -16.8% | | Gross Profit | 161,734 | 183,661 | (21,927) | -11.9% | | Operating Profit | 12,004 | 2,475 | 9,529 | +385.8% | | Profit/(Loss) Before Tax | 10,498 | (63,150) | 73,648 | Turned losses into profits | | Profit/(Loss) for the Period | 7,040 | (57,275) | 64,315 | Turned losses into profits | - Change in carrying amount of redeemable liabilities: **RMB 0 thousand in 2025** compared to **RMB (62,989) thousand in 2024**, significantly contributing to the current period's profit improvement `[4](index=4&type=chunk)` [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=%E7%BB%BC%E5%90%88%E6%8D%9F%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) The company's total comprehensive income for the period turned from a loss of RMB 56,805 thousand in the prior year to a profit of RMB 8,378 thousand, mainly due to improved profit for the period and positive exchange differences from translating financial statements of overseas entities Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income (Six Months Ended June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Profit/(Loss) for the Period | 7,040 | (57,275) | | Exchange differences on translation of financial statements of overseas entities | 1,338 | 470 | | Total Comprehensive Income for the Period | 8,378 | (56,805) | - Total comprehensive income attributable to equity holders of the Company was **RMB 8,404 thousand**, compared to a loss of **RMB 55,348 thousand** in the prior period `[6](index=6&type=chunk)` [Consolidated Statement of Financial Position](index=4&type=section&id=%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) As of June 30, 2025, the company's total assets slightly decreased, but net assets increased, primarily due to an increase in intangible assets and a reduction in liabilities Key Data from Consolidated Statement of Financial Position | Metric | 2025年6月30日 (RMB '000) | 2024年12月31日 (RMB '000) | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Non-current Assets | 130,145 | 113,845 | 16,300 | +14.3% | | Current Assets | 414,076 | 454,781 | (40,705) | -9.0% | | Current Liabilities | 310,568 | 340,409 | (29,841) | -8.8% | | Net Current Assets | 103,508 | 114,372 | (10,864) | -9.5% | | Non-current Liabilities | 3,487 | 4,629 | (1,142) | -24.7% | | Net Assets | 240,166 | 231,788 | 8,378 | +3.6% | | Total Equity | 240,166 | 231,788 | 8,378 | +3.6% | - Intangible assets significantly increased from **RMB 81,272 thousand** as of December 31, 2024, to **RMB 99,020 thousand** as of June 30, 2025, mainly due to the recognition of R&D outcomes as intangible assets during the reporting period `[9](index=9&type=chunk)[55](index=55&type=chunk)` [Notes to the Financial Information](index=6&type=section&id=%E8%B4%A2%E5%8A%A1%E8%B5%84%E6%96%99%E9%99%84%E6%B3%A8) [Basis of Preparation](index=6&type=section&id=%E7%BC%96%E8%A3%BD%E5%9F%BA%E7%A4%8E) The interim financial report is prepared in accordance with the HKEX Listing Rules and IAS 34, adopting the same accounting policies as the 2024 annual financial statements, and was authorized for issue on August 29, 2025 - Basis of Preparation: **HKEX Listing Rules** and **International Accounting Standard 34** `[12](index=12&type=chunk)` - Accounting Policies: Same as those adopted in the **2024 annual financial statements**, except for changes expected to be reflected in the 2025 annual financial statements `[12](index=12&type=chunk)` - Authorization Date for Issue: **August 29, 2025** `[12](index=12&type=chunk)` [Changes in Accounting Policies](index=6&type=section&id=%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E7%9A%84%E5%8F%98%E5%8A%A8) The Group has applied the amendments to IAS 21 "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability," but these amendments had no significant impact on this interim report as no foreign currency non-exchangeable transactions were involved, and no other new standards not yet effective have been applied - Amendments to **IAS 21 "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability"** have been applied `[14](index=14&type=chunk)` - These amendments had **no significant impact** on this interim report as the Group had no foreign currency non-exchangeable transactions `[14](index=14&type=chunk)` - No new standards or interpretations not yet effective have been applied in the current accounting period `[15](index=15&type=chunk)` [Revenue and Segment Reporting](index=6&type=section&id=%E6%94%B6%E5%85%A5%E5%8F%8A%E5%88%86%E9%83%A8%E6%8A%A5%E5%91%8A) The Group primarily generates revenue through enterprise services and digital marketing, healthcare services, and other business lines, managing and assessing performance by these segments, with the vast majority of operations concentrated in mainland China - Main Businesses: Provision of **enterprise services and digital marketing services**, and **healthcare services** `[16](index=16&type=chunk)` - Segment Management: Divided into three independent segments by service line: **enterprise services and digital marketing services**, **healthcare services**, and **other** `[19](index=19&type=chunk)[20](index=20&type=chunk)` - Geographic Concentration: The vast majority of assets, liabilities, revenue, and gross profit are attributable to **mainland China operations** `[19](index=19&type=chunk)[21](index=21&type=chunk)` [Revenue Details](index=7&type=section&id=%E6%94%B6%E5%85%A5%E6%98%8E%E7%BB%86) For the six months ended June 30, 2025, total revenue was RMB 517,852 thousand, with enterprise services and digital marketing contributing the most, but overall revenue decreased year-on-year Revenue from Contracts with Customers by Major Service Line | Service Line | 2025 (RMB '000) | 2024 (RMB '000) | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Enterprise Services and Digital Marketing Services | 413,059 | 488,539 | (75,480) | -15.45% | | Healthcare Services | 104,638 | 122,829 | (18,191) | -14.81% | | Other | 155 | 117 | 38 | +32.48% | | **Total** | **517,852** | **611,485** | **(93,633)** | **-15.31%** | - Revenue Recognition Timing: Most revenue is recognized **at a point in time** (2025: **RMB 462,536 thousand**), with a smaller proportion recognized **over time** (2025: **RMB 55,316 thousand**) `[18](index=18&type=chunk)` [Segment Reporting Analysis](index=7&type=section&id=%E5%88%86%E9%83%A8%E6%8A%A5%E5%91%8A%E5%88%86%E6%9E%90) Enterprise services and digital marketing remain the Group's primary contributors to revenue and gross profit, but both major segments experienced year-on-year declines in revenue and gross profit, consistent with the overall revenue trend Gross Profit by Reportable Segment (Six Months Ended June 30) | Segment | 2025 (RMB '000) | 2024 (RMB '000) | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Enterprise Services and Digital Marketing Services | 133,049 | 148,164 | (15,115) | -10.20% | | Healthcare Services | 28,559 | 35,401 | (6,842) | -19.33% | | Other | 126 | 96 | 30 | +31.25% | | **Total Reportable Segment Gross Profit** | **161,734** | **183,661** | **(21,927)** | **-11.94%** | - The Group's senior management monitors performance based on each segment's revenue and gross profit to assess segment performance and allocate resources `[19](index=19&type=chunk)` [Income Tax](index=9&type=section&id=%E6%89%80%E5%BE%97%E7%A8%8E) During the reporting period, the company's income tax expense was RMB 3,458 thousand, compared to an income tax credit of RMB 5,875 thousand in the prior year, mainly due to the turnaround to pre-tax profit and the reversal of deferred tax assets; some subsidiaries enjoy R&D cost super deduction and small-profit enterprise tax rate benefits Income Tax Components (Six Months Ended June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Current Tax - Provision for the period | 5,955 | 1,243 | | Deferred Tax - Origination and reversal of temporary differences | (2,497) | (7,118) | | **Total Income Tax** | **3,458** | **(5,875)** | - The statutory corporate income tax rate for mainland China subsidiaries is **25%** `[24](index=24&type=chunk)` - Fujian HealthyWay Information Technology Co., Ltd., as a high-tech enterprise, enjoys a lower income tax rate of **15%** (2023-2025) `[24](index=24&type=chunk)` - Eligible R&D costs can enjoy an additional **100% super deduction** `[23](index=23&type=chunk)` - Some subsidiaries, as "small-profit enterprises," enjoy a lower corporate income tax rate of **20%** `[23](index=23&type=chunk)` [Earnings/(Loss) Per Share](index=10&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9%E2%88%95%EF%BC%88%E4%BA%8F%E6%8D%9F%EF%BC%89) For the six months ended June 30, 2025, the company achieved basic and diluted earnings per share of RMB 0.01, a significant improvement from a loss per share of RMB 0.08 in the prior year Earnings/(Loss) Per Share (Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Basic Earnings/(Loss) Per Share (RMB) | 0.01 | (0.08) | | Diluted Earnings/(Loss) Per Share (RMB) | 0.01 | (0.08) | - Basic earnings per share is calculated based on profit attributable to ordinary equity holders of the Company of **RMB 7,066 thousand** (2024: loss of **RMB 55,818 thousand**) and weighted average ordinary shares outstanding of **877,705 thousand** (2024: **714,598 thousand**) `[25](index=25&type=chunk)` - There were no potential dilutive ordinary shares in the current period, so diluted earnings per share is the same as basic earnings per share `[26](index=26&type=chunk)` [Trade and Other Receivables](index=10&type=section&id=%E8%B4%B8%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A1%B9) As of June 30, 2025, total trade and other receivables increased to RMB 158,102 thousand, primarily due to extended payment terms for some customers Ageing Analysis of Trade and Other Receivables | Ageing | 2025年6月30日 (RMB '000) | 2024年12月31日 (RMB '000) | | :--- | :--- | :--- | | Within 1 month | 85,642 | 105,781 | | More than 1 month but within 1 year | 38,691 | 11,482 | | More than 1 year but within 2 years | 804 | 2,261 | | More than 2 years but within 3 years | 420 | 247 | | **Subtotal Trade Receivables** | **125,557** | **119,771** | | Amounts due from related parties | 1,052 | 1,000 | | Deposits | 3,457 | 3,997 | | Other receivables | 28,036 | 19,440 | | **Total** | **158,102** | **144,208** | - Trade receivables overdue by more than 1 month but within 1 year significantly increased, reflecting extended payment terms `[27](index=27&type=chunk)[49](index=49&type=chunk)` [Trade and Other Payables](index=11&type=section&id=%E8%B4%B8%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E5%BA%94%E4%BB%98%E6%AC%BE%E9%A1%B9) As of June 30, 2025, total trade and other payables decreased to RMB 177,508 thousand, largely consistent with the downward trend in cost of sales Ageing Analysis of Trade and Other Payables | Ageing | 2025年6月30日 (RMB '000) | 2024年12月31日 (RMB '000) | | :--- | :--- | :--- | | Within 1 year | 112,920 | 121,545 | | More than 1 year but within 2 years | 315 | 109 | | More than 2 years but within 3 years | 64 | 103 | | More than 3 years | 159 | 144 | | **Subtotal Trade Payables** | **113,458** | **121,901** | | Amounts due to shareholders | 4,659 | 4,714 | | Accrued salaries and bonuses | 20,045 | 25,006 | | Advances from customers | 13,424 | 15,751 | | Other payables | 25,922 | 41,190 | | **Total** | **177,508** | **208,562** | - Amounts due to shareholders as of June 30, 2025, have been fully settled as of the announcement date `[51](index=51&type=chunk)` [Capital, Reserves and Dividends](index=11&type=section&id=%E8%B5%84%E6%9C%AC%E3%80%81%E5%82%A8%E5%A4%87%E5%8F%8A%E8%82%A1%E6%81%AF) As of June 30, 2025, the company's share capital remained stable, reserves increased, and the Board of Directors did not recommend an interim dividend Capital and Reserves (As of June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Share Capital | 96 | 96 | | Reserves | 235,073 | 226,669 | | Total equity attributable to equity holders of the Company | 235,169 | 226,765 | | Non-controlling interests | 4,997 | 5,023 | | **Total Equity** | **240,166** | **231,788** | - The Board of Directors does not recommend an interim dividend for the six months ended **June 30, 2025** (2024: nil) `[29](index=29&type=chunk)[67](index=67&type=chunk)` [Management Discussion and Analysis](index=12&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E5%8F%8A%E5%88%86%E6%9E%90) [Business Review](index=12&type=section&id=%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%B5) The company, as a digital healthcare service platform, maintained market share and expanded its customer base during the reporting period, but some businesses, such as digital marketing and medical support services, faced challenges - The company has been providing **healthcare services to individual users since 2001**, expanding to enterprise and institutional services in 2015 `[30](index=30&type=chunk)` - The number of registered individual users, registered doctors, and connected hospitals on the platform continues to grow `[30](index=30&type=chunk)` [Overview and Platform User Growth](index=12&type=section&id=%E6%A6%82%E8%A7%88%E4%B8%8E%E5%B9%B3%E5%8F%B0%E7%94%A8%E6%88%B7%E5%A2%9E%E9%95%BF) As of June 30, 2025, the company's platform had 211.8 million registered individual users, 905 thousand registered doctors, and 12,161 connected hospitals, all showing steady growth Platform User Growth | Metric | 2025年6月30日 | 2024年12月31日 | Increase | Growth Rate | | :--- | :--- | :--- | :--- | :--- | | Registered Individual Users | 211.8 million | 205.5 million | 6.3 million | +3.07% | | Registered Doctors | 905 thousand | 889 thousand | 16 thousand | +1.80% | | Connected Hospitals | 12,161 | 11,762 | 399 | +3.39% | [Enterprise Services and Digital Marketing Services Performance](index=12&type=section&id=%E4%BC%81%E4%B8%9A%E6%9C%8D%E5%8A%A1%E5%8F%8A%E6%95%B0%E5%AD%97%E8%90%A5%E9%94%80%E6%9C%8D%E5%8A%A1%E8%A1%A8%E7%8E%B0) Page views for popular science content services decreased, but the number of enterprise customers for precise content services and RWS support services increased, while digital marketing services saw a reduction in paying enterprise customers due to economic downturn - Page views for popular science content services decreased from **400 million** in H1 2024 to **250 million** in H1 2025 `[31](index=31&type=chunk)` - Precise content service customers: Increased from **9 pharmaceutical companies** in H1 2024 to **16 pharmaceutical companies and 6 other entities** in H1 2025 `[31](index=31&type=chunk)` - RWS support service customers: Increased from **30 pharmaceutical companies and 9 other entities** in H1 2024 to **48 pharmaceutical companies and 6 other entities** in H1 2025 `[31](index=31&type=chunk)` - Real-world study reports delivered decreased from **312** in H1 2024 to **212** in H1 2025 `[31](index=31&type=chunk)` - Number of paying enterprise and institutional customers decreased from **570** as of December 31, 2024, to **353** as of June 30, 2025, mainly due to the economic downturn `[31](index=31&type=chunk)` [Healthcare Services Performance](index=12&type=section&id=%E5%81%A5%E5%BA%B7%E5%8C%BB%E7%96%97%E6%9C%8D%E5%8A%A1%E8%A1%A8%E7%8E%B0) Both individual and enterprise customers for health membership programs decreased, and online medical consultations also declined, indicating challenges in this business segment - Individual customers for health membership programs decreased from **6.5 million** in H1 2024 to **5.9 million** in H1 2025 `[32](index=32&type=chunk)` - Enterprise customers for health membership programs decreased from **164** in H1 2024 to **133** in H1 2025 `[32](index=32&type=chunk)` - Online medical consultations decreased from **1.8 million** in H1 2024 to **1.4 million** in H1 2025 `[32](index=32&type=chunk)` [Financial Review](index=13&type=section&id=%E8%B4%A2%E5%8A%A1%E5%9B%9E%E9%A1%B5) During the reporting period, the company's total revenue decreased by 15.3% year-on-year, but through cost control and expense optimization, it successfully turned losses into profits, achieving a net profit of RMB 7.0 million - Total revenue decreased by **15.3%** to **RMB 517.9 million** `[35](index=35&type=chunk)` - Net profit turned from a loss of **RMB 57.3 million** in the prior year to a profit of **RMB 7.0 million** in the current period `[46](index=46&type=chunk)` [Revenue Analysis](index=13&type=section&id=%E6%94%B6%E5%85%A5%E5%88%86%E6%9E%90) Total revenue decreased by 15.3% year-on-year to RMB 517.9 million, mainly due to reduced revenue from content services, value-based healthcare services (especially pharmaceutical sales and integrated healthcare service packages), and digital marketing services Revenue Breakdown by Service (Six Months Ended June 30) | Service Category | 2025 (RMB '000) | % Share | 2024 (RMB '000) | % Share | Change Rate | | :--- | :--- | :--- | :--- | :--- | :--- | | **Healthcare Services** | **104,638** | **20.2** | **122,829** | **20.1** | **-14.8%** | | Medical Support Services - Health Membership Programs | 70,236 | 13.6 | 54,256 | 8.9 | +29.5% | | Medical Support Services - Other | 4,845 | 0.9 | 2,949 | 0.5 | +64.3% | | Value-based Healthcare Services - Integrated Healthcare Service Packages | 119 | 0.0 | 12,262 | 2.0 | -99.0% | | Value-based Healthcare Services - Pharmaceutical Sales Business | 29,438 | 5.7 | 53,362 | 8.7 | -44.9% | | **Enterprise Services and Digital Marketing Services** | **413,059** | **79.8** | **488,539** | **79.9** | **-15.5%** | | Enterprise Services - Content Services | 250,665 | 48.4 | 308,600 | 50.5 | -18.7% | | Enterprise Services - Information Technology Services | 122,647 | 23.7 | 129,319 | 21.1 | -5.2% | | Digital Marketing Services | 39,747 | 7.7 | 50,620 | 8.3 | -21.4% | | Other | 155 | 0.0 | 117 | 0.0 | +32.5% | | **Total** | **517,852** | **100.0** | **611,485** | **100.0** | **-15.3%** | - Content service revenue declined primarily due to some customers shifting to direct marketing, reducing reliance on RWS support services, and increased competition in the generic drug industry leading to customer budget cuts for RWS services `[35](index=35&type=chunk)` - Value-based healthcare service revenue decreased mainly due to the expiration of pharmaceutical wholesale business sales agency agreements and the company's proactive adjustment of service structure `[35](index=35&type=chunk)` - Digital marketing service revenue decreased primarily due to the economic downturn, leading customers to reduce advertising and marketing expenditures `[35](index=35&type=chunk)` [Cost of Sales](index=14&type=section&id=%E9%94%80%E5%94%AE%E6%88%90%E6%9C%AC) Total cost of sales decreased by 16.8% year-on-year to RMB 356.1 million, consistent with the revenue decline, mainly reflected in reduced cost of sales for enterprise services and digital marketing, and healthcare services Cost of Sales (Six Months Ended June 30) | Segment | 2025 (RMB '000) | 2024 (RMB '000) | Change Rate | | :--- | :--- | :--- | :--- | | Enterprise Services and Digital Marketing Services | (280,010) | (340,375) | -17.7% | | Healthcare Services | (76,079) | (87,428) | -13.0% | | Other | (29) | (21) | +38.1% | | **Total Cost of Sales** | **(356,118)** | **(427,824)** | **-16.8%** | [Gross Profit and Gross Profit Margin](index=14&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) Gross profit decreased year-on-year to RMB 161.7 million, but gross profit margin improved to 31.2%, influenced by business mix, pricing policies, and optimized cost structure Gross Profit and Gross Profit Margin (Six Months Ended June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change Rate | | :--- | :--- | :--- | :--- | | Gross Profit | 161,734 | 183,661 | -11.9% | | Gross Profit Margin | 31.2% | 30.0% | +1.2% | | Healthcare Services Gross Profit | 28,559 | 35,401 | -19.3% | | Enterprise and Digital Marketing Services Gross Profit | 133,049 | 148,164 | -10.2% | - The improvement in gross profit margin was mainly influenced by **business mix, pricing policies, and cost structure** `[37](index=37&type=chunk)` [Net Other Income](index=15&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%87%80%E9%A2%9D) Net other income increased from RMB 0.5 million in the prior year to RMB 1.2 million in the current period, primarily due to increased interest income and government subsidies, partially offset by exchange losses Net Other Income (Six Months Ended June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change Rate | | :--- | :--- | :--- | :--- | | Net Other Income | 1,161 | 455 | +155.2% | - The increase was primarily driven by **higher interest income and government subsidies** `[38](index=38&type=chunk)` [Selling Expenses](index=15&type=section&id=%E9%94%80%E5%94%AE%E5%BC%80%E6%94%AF) Selling expenses decreased by 11.6% year-on-year to RMB 87.2 million, mainly due to reduced marketing activities for integrated healthcare service packages and health membership programs Selling Expenses (Six Months Ended June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change Rate | | :--- | :--- | :--- | :--- | | Selling Expenses | (87,249) | (98,576) | -11.6% | - The decrease in expenses primarily resulted from **reduced promotional activities** for integrated healthcare service packages and health membership programs `[39](index=39&type=chunk)` [Administrative Expenses](index=15&type=section&id=%E8%A1%8C%E6%94%BF%E5%BC%80%E6%94%AF) Administrative expenses decreased by 9.6% year-on-year to RMB 26.3 million, mainly due to reduced office expenses and third-party service fees, partially offset by increased staff costs Administrative Expenses (Six Months Ended June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change Rate | | :--- | :--- | :--- | :--- | | Administrative Expenses | (26,256) | (29,097) | -9.6% | - The decrease in expenses was mainly attributable to **savings in office expenses and third-party service fees** `[40](index=40&type=chunk)` [Research and Development Costs](index=15&type=section&id=%E7%A0%94%E7%99%BC%E6%88%90%E6%9C%AC) R&D costs significantly decreased by 30.7% year-on-year to RMB 37.4 million, primarily due to the completion of several products, such as the AI disease prediction platform, in H2 2024, leading to lower technical service fees Research and Development Costs (Six Months Ended June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change Rate | | :--- | :--- | :--- | :--- | | Research and Development Costs | (37,386) | (53,968) | -30.7% | - The main reason was the **completion of products** such as the AI disease prediction platform, resulting in a corresponding decrease in technical service fees `[41](index=41&type=chunk)` [Finance Costs](index=15&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) Finance costs decreased by 39.1% year-on-year to RMB 1.4 million, primarily due to the company's repayment of some bank loans and borrowings in H1 2025 Finance Costs (Six Months Ended June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change Rate | | :--- | :--- | :--- | :--- | | Finance Costs | (1,358) | (2,321) | -39.1% | - The decrease in finance costs was mainly attributable to the **repayment of some bank loans and borrowings** `[42](index=42&type=chunk)` [Change in Carrying Amount of Redeemable Liabilities](index=16&type=section&id=%E8%B5%8E%E5%9B%9E%E8%B4%9F%E5%80%BA%E7%9A%84%E8%B4%A6%E9%9D%A2%E5%80%BC%E5%8F%98%E5%8A%A8) The company recorded no change in the carrying amount of redeemable liabilities in the current reporting period, compared to a loss of RMB 63.0 million in the prior year, mainly due to the termination of preferential rights upon the company's listing and reclassification to equity Change in Carrying Amount of Redeemable Liabilities (Six Months Ended June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Change in carrying amount of redeemable liabilities | – | (62,989) | - This change terminated upon the company's listing, and the related liabilities were reclassified to equity `[43](index=43&type=chunk)` [Profit Before Tax](index=16&type=section&id=%E9%99%A4%E7%A8%8E%E5%89%8D%E5%88%A9%E6%BD%A4) The company turned from a pre-tax loss of RMB 63.2 million in the prior year to a pre-tax profit of RMB 10.5 million in the current period, achieving significant improvement Profit/(Loss) Before Tax (Six Months Ended June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Profit/(Loss) Before Tax | 10,498 | (63,150) | [Income Tax](index=16&type=section&id=%E6%89%80%E5%BE%97%E7%A8%8E) Current period income tax expense was RMB 3.5 million, compared to an income tax credit of RMB 5.9 million in the prior year, mainly due to the turnaround to pre-tax profit and reversal of deferred income tax assets Income Tax (Six Months Ended June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Income Tax | (3,458) | 5,875 | - The change in income tax was mainly affected by the **turnaround from pre-tax loss to profit** and the **reversal of certain deferred income tax assets** `[45](index=45&type=chunk)` [Net Profit](index=16&type=section&id=%E5%87%80%E5%88%A9%E6%BD%A4) The company turned from a net loss of RMB 57.3 million in the prior year to a net profit of RMB 7.0 million in the current period, achieving a turnaround Net Profit/(Loss) (Six Months Ended June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Net Profit/(Loss) | 7,040 | (57,275) | [Discussion of Selected Items in the Consolidated Statement of Financial Position](index=16&type=section&id=%E7%BB%BC%E5%90%88%E8%B5%84%E7%94%A2%E8%B2%A0%E5%80%BAz%E8%A1%A8%E4%B8%AD%E9%81%B8%E5%AE%9A%E9%A0%85%E7%9B%AE%E7%9A%84%E8%A8%8E%E8%AB%96) As of June 30, 2025, the company's net current assets decreased, but overall net assets increased, primarily due to an increase in intangible assets and effective liability management - Net assets increased from **RMB 231.8 million** as of December 31, 2024, to **RMB 240.2 million** as of June 30, 2025 `[55](index=55&type=chunk)` [Overview of Current Assets and Liabilities](index=16&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E7%94%A2%E5%8F%8A%E8%B2%A0%E5%80%BAz%E6%A6%82%E8%A7%88) Net current assets decreased by 9.5% from RMB 114.4 million as of December 31, 2024, to RMB 103.5 million as of June 30, 2025, mainly due to decreases in cash and cash equivalents, prepayments, and other financial assets Net Current Assets (As of June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change Rate | | :--- | :--- | :--- | :--- | | Net Current Assets | 103,508 | 114,372 | -9.5% | - The decrease was mainly due to **decreases in cash and cash equivalents, prepayments, and other financial assets**, partially offset by a decrease in trade and other payables `[47](index=47&type=chunk)` [Inventories](index=17&type=section&id=%E5%AD%98%E8%B2%A8) Inventories increased from RMB 7.1 million as of December 31, 2024, to RMB 9.4 million as of June 30, 2025, primarily because some revenue from content services had not yet been recognized, and related contract fulfillment costs were capitalized as inventories Inventories (As of June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change Rate | | :--- | :--- | :--- | :--- | | Inventories | 9,390 | 7,096 | +32.3% | - Inventories primarily include **pharmaceuticals and health products** `[48](index=48&type=chunk)` [Trade and Other Receivables](index=17&type=section&id=%E8%B4%B8%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A0%85) Trade and other receivables increased from RMB 144.2 million as of December 31, 2024, to RMB 158.1 million as of June 30, 2025, mainly due to extended payment terms for some customers Trade and Other Receivables (As of June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change Rate | | :--- | :--- | :--- | :--- | | Trade and Other Receivables | 158,102 | 144,208 | +9.6% | [Prepayments](index=17&type=section&id=%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85) Prepayments decreased from RMB 27.5 million as of December 31, 2024, to RMB 15.0 million as of June 30, 2025, mainly due to reduced prepayments to suppliers after strategic negotiations on payment terms Prepayments (As of June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change Rate | | :--- | :--- | :--- | :--- | | Prepayments | 14,959 | 27,450 | -45.5% | [Trade and Other Payables](index=17&type=section&id=%E8%B4%B8%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E5%BA%94%E4%BB%98%E6%AC%BE%E9%A0%85) Trade and other payables decreased from RMB 208.6 million as of December 31, 2024, to RMB 177.5 million as of June 30, 2025, broadly consistent with the decline in cost of sales Trade and Other Payables (As of June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change Rate | | :--- | :--- | :--- | :--- | | Trade and Other Payables | 177,508 | 208,562 | -15.0% | - Mainly includes **trade payables, accrued salaries and bonuses, advances from customers, amounts due to shareholders, and other payables** `[51](index=51&type=chunk)` [Contract Liabilities](index=17&type=section&id=%E5%90%88%E7%B4%84%E8%B2%A0%E5%80%BAz) Contract liabilities remained relatively stable at RMB 56.0 million as of June 30, 2025 Contract Liabilities (As of June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change Rate | | :--- | :--- | :--- | :--- | | Contract Liabilities | 56,002 | 58,015 | -3.5% | [Loans and Borrowings](index=17&type=section&id=%E8%B2%B8%E6%AC%BE%E5%8F%8A%E5%80%9F%E6%AC%BE) Current loans and borrowings decreased from RMB 55.5 million as of December 31, 2024, to RMB 54.4 million as of June 30, 2025, mainly due to the repayment of some outstanding loans and borrowings Loans and Borrowings (As of June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change Rate | | :--- | :--- | :--- | :--- | | Current Loans and Borrowings | 54,416 | 55,502 | -2.0% | | Non-current Loans and Borrowings | 301 | 905 | -66.7% | [Contingent Liabilities](index=17&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%80%BAz) As of June 30, 2025, and December 31, 2024, the company had no significant contingent liabilities - No significant contingent liabilities at the end of the reporting period `[54](index=54&type=chunk)` [Non-Current Assets/Liabilities](index=18&type=section&id=%E9%9D%9E%E6%B5%81%E5%8B%95%E8%B3%87%E7%94%A2%E2%88%95%E8%B2%A0%E5%80%BAz) The company's total net assets increased to RMB 240.2 million, with intangible assets significantly increasing to RMB 99.0 million, primarily due to the recognition of R&D outcomes as intangible assets during the reporting period Non-Current Assets/Liabilities (As of June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change Rate | | :--- | :--- | :--- | :--- | | Property, Plant and Equipment | 6,663 | 8,660 | -23.0% | | Intangible Assets | 99,020 | 81,272 | +21.8% | | Goodwill | 8,605 | 8,605 | 0.0% | | Deferred Tax Assets | 22,797 | 20,300 | +12.3% | | Non-current Liabilities | 3,487 | 4,629 | -24.7% | - The increase in intangible assets was mainly due to the **recognition of R&D outcomes** during the reporting period `[55](index=55&type=chunk)` [Liquidity and Financial Resources](index=18&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) As of June 30, 2025, the company's cash and cash equivalents were RMB 231.4 million; net cash from operating activities significantly increased, net cash outflow from investing activities was mainly for capitalizing R&D outcomes, and net cash outflow from financing activities was primarily for repaying bank loans and paying listing fees Cash Flow Overview (Six Months Ended June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Net cash from operating activities | 34,670 | 13,030 | | Net cash (used in)/from investing activities | (52,344) | (18,578) | | Net cash (used in)/from financing activities | (11,130) | (13,409) | | Net increase/(decrease) in cash and cash equivalents | (28,804) | (18,957) | | Cash and cash equivalents at January 1 | 260,229 | 168,693 | | Cash and cash equivalents at June 30 | 231,425 | 149,736 | - Net cash outflow from investing activities was mainly due to expenses of **RMB 50.7 million** related to capitalizing R&D outcomes as intangible assets `[57](index=57&type=chunk)` - Net cash outflow from financing activities was primarily due to **repayment of bank loans of RMB 24.9 million** and **payment of listing fees of RMB 6.4 million** `[57](index=57&type=chunk)` - Total bank loans and borrowings amounted to **RMB 54.7 million**, with annual interest rates ranging from **3.35% to 14.65%** `[58](index=58&type=chunk)` [Other Information](index=19&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) [Outlook](index=19&type=section&id=%E5%B1%95%E6%9C%9B) The company remains cautiously optimistic about its business prospects, planning to improve financial performance and profitability by monetizing pharmaceutical sales, content services, and IT services, and strengthening cooperation with doctors to expand the RWS support services market - Expected to improve financial performance and profitability by **monetizing pharmaceutical sales business, content services, and information technology services** `[59](index=59&type=chunk)` - Plans to deepen connections with more doctors and integrate medical services into the platform to **enhance business segment synergies** and **strengthen the advantages of the pharmaceutical sales business** `[59](index=59&type=chunk)` - Aims to obtain broader real-world clinical data through expanded cooperation with doctors, providing more valuable insights for pharmaceutical companies and assisting drug research `[59](index=59&type=chunk)` - Despite market challenges, the company maintains a **cautiously optimistic attitude** towards its business prospects `[60](index=60&type=chunk)` [Material Post-Reporting Period Events](index=19&type=section&id=%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%90%8E%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9) As of the announcement date, the company had no material post-reporting period events - No material post-reporting period events as of the announcement date `[61](index=61&type=chunk)` [Compliance with Corporate Governance Code](index=19&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%88%99) The company is committed to practicing good corporate governance standards and has complied with all applicable provisions of the Corporate Governance Code during the reporting period, with a deviation where the roles of Chairman and Chief Executive Officer are held by the same person - The company has adopted and applied the **Corporate Governance Code** set out in Appendix C1 of the Listing Rules `[63](index=63&type=chunk)` - During the reporting period, the company complied with all applicable code provisions of the Corporate Governance Code, except for the roles of Chairman and Chief Executive Officer being held by the same person `[63](index=63&type=chunk)` [Corporate Governance Code Compliance](index=19&type=section&id=%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%88%99%E5%90%88%E8%A7%84%E6%80%A7) The company has adopted and complied with the Corporate Governance Code, aiming to protect shareholders' interests, enhance corporate value and transparency, but there is a deviation where the roles of Chairman and Chief Executive Officer are held by the same person - The company is committed to ensuring good corporate governance standards are practiced to **protect shareholders' interests, enhance corporate value, formulate business strategies, and improve transparency and accountability** `[62](index=62&type=chunk)` [Roles of Chairman and Chief Executive Officer](index=20&type=section&id=%E4%B8%BB%E5%B8%AD%E5%8F%8A%E8%A1%8C%E6%94%BF%E6%80%BB%E8%A3%81%E8%A7%92%E8%89%B2) Mr. Zhang Wanneng currently serves as both Chairman of the Board and Chief Executive Officer, a deviation from Code Provision C.2.1 of the Corporate Governance Code; the Board believes this arrangement benefits Group management and will continue to review it - Mr. Zhang Wanneng currently holds both the roles of **Chairman of the Board and Chief Executive Officer**, which deviates from Code Provision C.2.1 of the Corporate Governance Code `[64](index=64&type=chunk)` - The Board believes this arrangement is beneficial for Group management, given Mr. Zhang's role as founder and extensive experience, and that senior management and the Board can effectively monitor and balance his powers `[64](index=64&type=chunk)[65](index=65&type=chunk)` - The Board is committed to continuously reviewing and considering the separation of the roles of Chairman and Chief Executive Officer when appropriate and suitable `[65](index=65&type=chunk)` [Interim Results Review](index=21&type=section&id=%E4%B8%AD%E6%9C%9F%E4%B8%9A%E7%BB%A9%E5%9B%9E%E9%A1%B5) The Group's unaudited consolidated financial statements for the six months ended June 30, 2025, have been reviewed by the external auditor and the Board's audit committee - The interim financial statements were not audited by the external auditor but were reviewed by the **external auditor and the Board's audit committee** `[66](index=66&type=chunk)` - The audit committee comprises two independent non-executive directors and one non-executive director, with **Mr. Xu Jing** serving as the Chairman of the audit committee `[66](index=66&type=chunk)` [Interim Dividend](index=21&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board of Directors does not recommend an interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend an interim dividend for the six months ended **June 30, 2025** (2024: nil) `[67](index=67&type=chunk)` [Purchase, Sale or Redemption of the Company's Listed Securities](index=21&type=section&id=%E8%B4%AD%E4%B9%B0%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B5%8E%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%8A%E5%B8%82%E8%AF%81%E5%88%B8) During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities `[68](index=68&type=chunk)` [Publication of Interim Results Announcement and Interim Report](index=21&type=section&id=%E5%88%8A%E5%8F%91%E4%B8%AD%E6%9C%9F%E4%B8%9A%E7%BB%A9%E5%85%AC%E5%91%8A%E5%8F%8A%E4%B8%AD%E6%9C%9F%E6%8A%A5%E5%91%8A) This interim results announcement has been published on the HKEXnews website and the company's website, and the interim report will be published in due course - The interim results announcement has been published on the **HKEXnews website www.hkexnews.hk** and the **company's website www.jkzlkj.cn** `[69](index=69&type=chunk)` - The interim report for the six months ended **June 30, 2025**, will be published on the aforementioned websites in due course `[69](index=69&type=chunk)`

Core Viewpoint - Baidu (Hong Kong) Limited has reduced its stake in Health Road (02587) by selling 10.0515 million shares at a price of HKD 10.4713 per share, totaling approximately HKD 105 million, resulting in a new holding of 96.1936 million shares, which represents 10.96% of the company [1] Summary by Category - **Share Reduction** - Baidu (Hong Kong) Limited sold 10.0515 million shares of Health Road [1] - The sale price was HKD 10.4713 per share [1] - The total amount raised from the sale was approximately HKD 105 million [1] - **Post-Sale Holdings** - After the sale, Baidu's remaining shares in Health Road are 96.1936 million [1] - The new ownership percentage is 10.96% [1]

Group 1 - Baidu (Hong Kong) Limited reduced its stake in Health Road (02587) by 10.0515 million shares on August 19, at a price of HKD 10.4713 per share, totaling approximately HKD 105 million [1] - After the reduction, Baidu's latest shareholding stands at 96.1936 million shares, representing a holding percentage of 10.96% [1]

Company Overview - Health Road (02587.HK) closed at HKD 10.3 per share, up 8.08% with a trading volume of 119 million shares and a turnover of HKD 1.197 billion, showing a volatility of 10.07% [1] - Over the past month, Health Road has seen a cumulative increase of 7.08%, but a year-to-date decline of 27.14%, underperforming the Hang Seng Index which has risen by 25.45% [1] - As of December 31, 2024, Health Road reported total revenue of HKD 1.201 billion, a year-on-year decrease of 3.51%, and a net profit attributable to shareholders of -HKD 268 million, an increase of 13.42% year-on-year, with a gross margin of 30.47% and a debt-to-asset ratio of 59.82% [1] Industry Analysis - Currently, there are no institutional investment ratings for Health Road [2] - The average price-to-earnings (P/E) ratio for the healthcare equipment and services industry is -10.95 times, with a median of 0.36 times. Health Road's P/E ratio stands at -28.85 times, ranking 66th in the industry [2] - Competitors' P/E ratios include: Other Star Medical Holdings (02393.HK) at 0.35 times, Jingjiu Health (00648.HK) at 0.37 times, Yihui Group (08161.HK) at 2.32 times, Global Medical (02666.HK) at 5.14 times, and Ruici Medical (01526.HK) at 5.2 times [2] Business Position - Health Road operates a digital health service platform in China and is the fourth largest digital health service platform based on registered personal users as of December 31, 2023, and the fifth largest based on revenue for 2023 [2] - Since 2001, the company has provided health services to individual users on its digital platform and expanded to offer corporate services and digital marketing since 2015, playing a significant role in the digital transformation of China's health and wellness industry over the past 20 years [2] Important Dates - The company is scheduled to disclose its mid-year report for the fiscal year 2025 on August 29, 2025 [3] - On August 15, 2025, Best Premier Group Investment Limited reduced its holdings by 3 million shares at an average price of HKD 7.6 per share, now holding 85.23 million shares, representing 9.71% of total shares [3]