Core Viewpoint - 瑞和数智科技控股有限公司 has entered into a strategic partnership with Bitmain to venture into the Bitcoin cloud mining sector, aiming to diversify its revenue sources and capitalize on global digital asset opportunities [1][4]. Group 1: Partnership and Strategy - The collaboration with Bitmain allows 瑞和数智 to leverage Bitmain's leading position in the digital currency mining market and its advanced technology, facilitating a swift entry into Bitcoin mining [2]. - The partnership model mitigates risks associated with hardware procurement, infrastructure development, and high maintenance costs, transforming capital expenditures into predictable operational expenses [2][5]. - The initial investment for this collaboration exceeds 20 million HKD, marking a strategic breakthrough in the digital asset computing power sector for 瑞和数智 [4]. Group 2: Market Opportunities and Business Model - The move aligns with the global digital economy trends and the Hong Kong government's push for Web3.0 and virtual asset industry development [4]. - By adopting a cloud service model, 瑞和数智 can reduce the complexity and risks associated with hardware, energy, and technology, allowing for flexible adjustments in mining scale based on market conditions [2][5]. - Bitcoin mining is expected to become a new growth area for 瑞和数智, providing new business opportunities and development space, especially in an uncertain macroeconomic environment [4][5].

Group 1 - The company 瑞和数智 (03680.HK) announced plans to diversify its revenue sources by engaging in cryptocurrency business through cloud mining services provided by Bitmain, an independent third-party service provider [1] - The service provider and its ultimate beneficial owners are known to be independent third parties of the company [1]

Core Viewpoint - 瑞和数智 plans to diversify its revenue sources by engaging in cryptocurrency business through cloud mining services provided by Bitmain, an independent third party [1][2] Group 1: Business Strategy - The company aims to establish a new revenue stream through cryptocurrency mining, which is expected to provide additional income [1] - The board believes that Bitcoin mining as an independent business segment offers opportunities in digital assets and emerging technologies, aligning with the strategic value amid increasing macroeconomic uncertainties [1] - This initiative is in line with the Hong Kong government's policy direction regarding blockchain and digital asset innovation [1] Group 2: Risk Management and Operational Efficiency - By outsourcing Bitcoin mining to a leading service provider, the company can transfer some risks and responsibilities, avoiding significant upfront capital expenditures on hardware and infrastructure [2] - This arrangement reduces operational complexities and risks associated with hardware failures, energy management, and technical challenges [2] - The company retains the right to purchase mining machines, allowing for direct control over mining operations and hardware when necessary [2] Group 3: Market Alignment - The company's move to expand into cryptocurrency aligns with the rapid development of the digital economy and virtual asset industry in Hong Kong [2]

Group 1 - The company plans to diversify its revenue sources by engaging in cryptocurrency business through cloud mining services provided by Bitmain, an independent third party [1] - The board believes that Bitcoin mining as an independent business segment offers opportunities in digital assets and emerging technologies, especially amid increasing macroeconomic uncertainties [1] - The company expects to gain additional revenue from this diversification strategy, aligning with the Hong Kong government's policy direction [1] Group 2 - The service provider is a leading global manufacturer of digital currency mining machines, maintaining a strong market share and technological leadership across over 100 countries [2] - By outsourcing Bitcoin mining operations, the company can transfer some risks and responsibilities, avoiding significant upfront capital expenditures on hardware and infrastructure [2] - The arrangement allows the company to flexibly adjust mining scale based on demand without being constrained by fixed assets, while also retaining the right to purchase mining machines if necessary [2]

Group 1 - The company, 瑞和数智, plans to diversify its revenue sources by engaging in cryptocurrency business through cloud mining services provided by Bitmain [1] - The board believes that Bitcoin mining as an independent business segment offers opportunities in digital assets and emerging technologies, especially in the context of increasing macroeconomic uncertainty [1] - The cryptocurrency business is expected to provide additional revenue streams and align with the Hong Kong government's policy direction on blockchain and digital asset innovation [1] Group 2 - By outsourcing Bitcoin mining to a service provider, the company can transfer some risks and responsibilities, avoiding significant upfront capital expenditures on hardware and infrastructure [2] - This arrangement reduces operational complexities and risks associated with hardware failures, energy management, and technical challenges [2] - The company can flexibly adjust mining scale according to demand without being constrained by fixed assets, while also retaining the right to purchase mining machines if necessary [2]

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依賴該等內容而引致的任何損失承擔任何責任。 董 事 會 認 為，比 特 幣 挖 礦 作 為 獨 立 業 務 板 塊，可 為 本 集 團 提 供 不 同 於 傳 統 運 營 及 投 資 模 式 的 數 字 資 產 及 新 興 技 術 領 域 的 機 會。在 當 前 宏 觀 經 濟 不 確 定 性 增 加 的背景下，此類業務更具戰略價值。此外，該業務不僅具有高回報潛力，還能推 動 本 集 團 佈 局 區 塊 鏈 及 數 字 資 產 創 新 領 域，確 立 公 司 的 前 瞻 性 定 位，與 香 港 特 別行政區政府相關政策導向相契合。 – 1 – Ruihe Data Technology Holdings Limited 瑞和數智科技控股有限公司 （於開曼群島註冊成立之有限公司） （股份代號：3680） 自願性公告– 通過開展加密貨幣業務 拓展收入來源 本 自 願 性 公 告 由 瑞 和 數 智 科 技 控 股 有 限 公 司（「本公司」，連 同 ...

Core Viewpoint - 瑞和数智 reported a revenue of 120 million yuan for the six months ending June 30, 2025, representing a year-on-year decrease of 33.49% [1] - The company achieved a profit attributable to owners of 43.186 million yuan, compared to a loss of 36.04 million yuan in the same period last year, with earnings per share of 6.28 cents [1] Financial Performance - The main reason for the profit during the reporting period was the recognition of a fair value gain of approximately 63.015 million yuan from holding 15 million shares of Tokyo Central Auction Holdings [1] - The company implemented cost reduction and efficiency enhancement measures, resulting in a decrease in R&D expenses, administrative expenses, financing costs, and sales expenditures compared to the same period last year [1] Strategic Focus - The company continues to strengthen its core competitiveness in the fields of data intelligence and marketing technology [1] - It is deepening its engagement with existing clients in banking, securities, and manufacturing sectors while actively exploring new strategic areas [1] - The company is committed to transforming into a comprehensive digital intelligence service provider by innovating business models and exploring new fields such as data assets, financial AI models, domestic innovation, and software and hardware information technology [1]

Core Viewpoint - 瑞和数智 (03680.HK) reported a significant turnaround in its financial performance for the first half of 2025, achieving a profit after a loss in the previous year, driven by strategic business adjustments and cost reduction measures [1] Financial Performance - The company achieved revenue of approximately RMB 120 million with a gross margin of about 7.6% for the first half of 2025 [1] - The profit attributable to shareholders was approximately RMB 43.186 million, compared to a loss of about RMB 36.04 million in the same period last year, marking a year-on-year turnaround [1] - Basic and diluted earnings per share were approximately RMB 0.0628 [1] - Net income for the first half of 2025 was approximately RMB 41.098 million, compared to a net loss of about RMB 38.635 million in the first half of 2024 [1] Key Drivers of Profitability - The main reasons for the reported profit include: 1. The company held 15 million shares of Tokyo Central Auction (01939.HK), recognizing a fair value gain of approximately RMB 63.015 million [1] 2. The company implemented significant cost reduction measures, leading to a decrease in R&D expenses, administrative costs, financing costs, and sales expenses compared to the same period last year [1] Strategic Focus - The company aims to strengthen its core business foundation in the financial industry and consolidate its leading position in data intelligence and marketing technology [1] - The development philosophy is centered around "data foundation, intelligent drive, and innovation empowerment" [1] - The company is actively exploring emerging fields such as Web 3.0, digital assets, marketization of data elements, domestic innovation, integrated hardware and software, and value investment [1] - Through a diversified development strategy, the company seeks to achieve structural optimization and sustainable growth [1]

Core Viewpoint - 瑞和数智 reported a revenue of 120 million yuan for the six months ending June 30, 2025, representing a year-on-year decrease of 33.49% [1] - The company achieved a profit attributable to shareholders of 43.186 million yuan, compared to a loss of 36.04 million yuan in the same period last year, with earnings per share of 6.28 cents [1] Financial Performance - The decrease in revenue is attributed to various factors, while the profit increase is primarily due to a fair value gain of approximately 63.015 million yuan from holding 15 million shares of Tokyo Central Auction Holdings [1] - The company implemented cost reduction and efficiency enhancement measures, leading to a decrease in R&D expenses, administrative costs, financing costs, and sales expenses compared to the same period last year [1] Strategic Focus - The company continues to strengthen its core competitiveness in data intelligence and marketing technology, focusing on existing customer bases in banking, securities, and manufacturing sectors [1] - It is actively exploring new strategic areas, innovating business models, and venturing into fields such as data assets, financial AI models, domestic innovation, and software and hardware information technology [1] - The company aims to transform into a comprehensive digital intelligence service provider [1]

[Performance Overview](index=1&type=section&id=Performance%20Overview) [Financial Performance Overview](index=1&type=section&id=1.1%20Financial%20Performance%20Overview) The company's revenue significantly decreased by 33.5% year-on-year due to business restructuring, but achieved a net profit turnaround through cost-efficiency measures and fair value gains on financial assets Financial Performance Summary | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Y-o-Y Change | Change Rate | Primary Reasons | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 120,392 | 181,011 | (60,619) | -33.5% | Strategic business structure adjustment, reduced revenue from data solutions, integrated services, IT maintenance and support | | Gross Profit | 9,111 | 14,577 | (5,466) | -37.5% | Revenue structure adjustment, increased proportion of commodity trading | | Net Profit | 41,098 | (38,635) | 79,733 | N/A (Turnaround to Profit) | Fair value gain on Tokyo Chuo Auction shares, cost-reduction and efficiency-improvement measures | | Basic EPS | 6.28 cents | (5.48 cents) | N/A (Turnaround to Profit) | N/A (Turnaround to Profit) | Increase in Net Profit | - The company strategically adjusted its business composition, leading to a reduction in data solutions business revenue by approximately **54.4%** (RMB 37,251,000), integrated services revenue (selling software, hardware, and related services) by approximately **39.1%** (RMB 18,376,000), and IT maintenance and support services revenue by approximately **88.9%** (RMB 3,406,000)[2](index=2&type=chunk) - During the reporting period, the company recognized a fair value gain of approximately **RMB 63,015,000** from holding 15,000,000 shares of Tokyo Chuo Auction Holdings Limited, a key factor in achieving profitability[4](index=4&type=chunk) - The Group vigorously implemented cost-reduction and efficiency-improvement measures, resulting in decreased R&D expenses, administrative expenses, finance costs, and selling expenses compared to the same period last year[4](index=4&type=chunk) [Interim Condensed Consolidated Financial Statements](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=2.1%20Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For H1 2025, the company reported a net profit of RMB 41,098 thousand, reversing a prior-year loss, driven by fair value gains and reduced expenses Consolidated Statement of Comprehensive Income Summary | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 120,392 | 181,011 | (60,619) | | Cost of Sales | (111,281) | (166,434) | 55,153 | | Gross Profit | 9,111 | 14,577 | (5,466) | | Selling Expenses | (2,586) | (5,528) | 2,942 | | Administrative Expenses | (20,983) | (24,053) | 3,070 | | R&D Expenses | (7,385) | (19,449) | 12,064 | | Operating Loss | (18,170) | (32,320) | 14,150 | | Fair value gain on financial assets at FVTPL | 63,015 | - | 63,015 | | Profit/(Loss) for the period | 41,098 | (38,635) | 79,733 | | Profit/(Loss) for the period attributable to owners of the Company | 43,186 | (36,040) | 79,226 | | Basic EPS/(Loss) (RMB cents) | 6.28 | (5.48) | N/A | - Selling expenses, administrative expenses, and R&D expenses all significantly decreased by **53.2%**, **12.8%**, and **62%** respectively, reflecting the company's efforts in cost reduction and efficiency improvement[5](index=5&type=chunk) - Fair value gain on financial assets was a key factor in the period's turnaround to profit, contributing **RMB 63,015 thousand** in income[5](index=5&type=chunk) [Interim Condensed Consolidated Statement of Financial Position](index=5&type=section&id=2.2%20Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets reached RMB 343,872 thousand and total equity grew to RMB 117,634 thousand, driven by reduced accumulated losses and increased share capital Consolidated Statement of Financial Position Summary | Metric | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 343,872 | 298,852 | 45,020 | | Non-current Assets | 163,982 | 105,900 | 58,082 | | Current Assets | 179,890 | 192,952 | (13,062) | | Total Equity | 117,634 | 42,881 | 74,753 | | Total Liabilities | 226,238 | 255,971 | (29,733) | | Net Current Liabilities | (45,765) | (50,851) | 5,086 | - Financial assets at fair value through profit or loss increased from zero to **RMB 67,700 thousand**, representing a significant component of total asset growth[7](index=7&type=chunk) - Accumulated losses decreased from **RMB (400,508) thousand** as of December 31, 2024, to **RMB (357,322) thousand**, reflecting the positive impact of current period's profit on equity[8](index=8&type=chunk) - Share capital increased to **RMB 7,149 thousand**, and other reserves also significantly grew, collectively driving the increase in total equity[8](index=8&type=chunk) [Notes to the Interim Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements) [General Information and Basis of Preparation](index=7&type=section&id=3.1%20General%20Information%20and%20Basis%20of%20Preparation) The company, an investment holding entity registered in the Cayman Islands, operates in data solutions, integrated IT services, and commodity trading, with interim financials prepared under IAS 34 in RMB - The Group is primarily engaged in providing data solutions, integrated services for selling software, hardware, and related services, IT maintenance and support services, and commodity trading[9](index=9&type=chunk) - The interim condensed financial information is prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' and presented in RMB[10](index=10&type=chunk) [Revenue and Segment Information](index=8&type=section&id=3.2%20Revenue%20and%20Segment%20Information) Total revenue for the period was RMB 120,392 thousand, down 33.5% year-on-year, primarily due to a significant decline in integrated data technology services, with all revenue from mainland China Revenue by Source | Revenue Source | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Y-o-Y Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Data Solutions | 31,240 | 68,491 | (37,251) | -54.4% | | Integrated Services for Software, Hardware & Related Services | 28,592 | 46,968 | (18,376) | -39.1% | | IT Maintenance & Support Services | 426 | 3,832 | (3,406) | -88.9% | | **Subtotal: Integrated Data Technology Services** | **60,258** | **119,291** | **(59,033)** | **-49.5%** | | Commodity Trading | 60,134 | 61,720 | (1,586) | -2.6% | | **Total Revenue** | **120,392** | **181,011** | **(60,619)** | **-33.5%** | - The chief operating decision maker segments the Group's business into two reportable segments: integrated data technology services and commodity trading[12](index=12&type=chunk) - All of the Group's revenue and non-current assets are primarily located in mainland China[16](index=16&type=chunk) [Components of Profit/(Loss) Before Income Tax](index=10&type=section&id=3.3%20Components%20of%20Profit%2F%28Loss%29%20Before%20Income%20Tax) The company achieved a profit before income tax of RMB 40,931 thousand, reversing a prior-year loss, mainly due to a RMB 63,015 thousand fair value gain on financial assets and reduced operating expenses Profit/(Loss) Before Income Tax Components | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Employee Benefit Expenses | 31,237 | 56,944 | (25,707) | | Amortization of Intangible Assets | 7,152 | 8,142 | (990) | | Depreciation of Right-of-Use Assets | 502 | 2,631 | (2,129) | | Depreciation of Property and Equipment | 2,346 | 3,370 | (1,024) | | Depreciation of Investment Property | 363 | - | 363 | | (Reversal of expected credit losses)/Expected credit losses on trade receivables | (2,221) | 1,898 | (4,119) | | Reversal of expected credit losses on contract assets | (713) | (498) | (215) | | Fair value gain on financial assets at FVTPL | (63,015) | - | (63,015) | - Employee benefit expenses significantly decreased from **RMB 56,944 thousand** to **RMB 31,237 thousand**, representing a key achievement in cost control[17](index=17&type=chunk) - Provisions for expected credit losses on trade receivables and contract assets both shifted from an increase to a reversal, indicating an improvement in asset quality[17](index=17&type=chunk) [Finance Costs and Income Tax](index=11&type=section&id=3.4%20Finance%20Costs%20and%20Income%20Tax) Net finance costs decreased to RMB (3,914) thousand, and income tax credit was RMB 167 thousand, with Chinese subsidiaries benefiting from preferential high-tech enterprise tax rates Finance Costs and Income Tax Summary | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Interest income from bank deposits | 29 | 128 | (99) | | Interest expense on bank and other borrowings | (3,423) | (6,236) | 2,813 | | Net finance costs | (3,914) | (6,801) | 2,887 | | Income tax credit | 167 | 473 | (306) | - The reduction in net finance costs was primarily due to a decrease in interest expenses on bank and other borrowings[19](index=19&type=chunk) - Subsidiaries including Shenzhen Suoxinda, Ruihe Zhizhi (Beijing) Technology, and Shenzhen Yinxing are subject to a preferential enterprise income tax rate of **15%** due to their recognition as National High-Tech Enterprises[21](index=21&type=chunk) [Earnings/(Loss) Per Share](index=12&type=section&id=3.5%20Earnings%2F%28Loss%29%20Per%20Share) Basic and diluted earnings per share both reached **RMB 6.28 cents**, reversing a prior-year loss of **RMB 5.48 cents**, reflecting significant net profit improvement Earnings/(Loss) Per Share Summary | Metric | H1 2025 (RMB cents) | H1 2024 (RMB cents) | Change | | :--- | :--- | :--- | :--- | | Basic EPS/(Loss) | 6.28 | (5.48) | Turnaround to Profit | | Diluted EPS/(Loss) | 6.28 | (5.48) | Turnaround to Profit | - The weighted average number of ordinary shares used to calculate basic and diluted earnings per share increased from **657,948 thousand** shares to **687,544 thousand** shares[22](index=22&type=chunk) [Notes to Key Balance Sheet Items](index=13&type=section&id=3.6%20Notes%20to%20Key%20Balance%20Sheet%20Items) This section details key balance sheet item changes, noting reduced expected credit loss provisions for trade receivables and contract assets, declining bank borrowings and trade payables, and some bank deposits frozen due to litigation Key Balance Sheet Items | Item | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Property and Equipment | 1,335 | 3,047 | (1,712) | | Intangible Assets | 52,002 | 59,158 | (7,156) | | Trade Receivables (Net) | 80,662 | 90,660 | (9,998) | | Provision for ECL on Trade Receivables | (61,437) | (63,658) | 2,221 (Decrease) | | Contract Assets (Net) | 58,295 | 66,653 | (8,358) | | Provision for ECL on Contract Assets | (30,947) | (32,600) | 1,653 (Decrease) | | Trade Payables | 55,251 | 91,612 | (36,361) | | Bank and Other Borrowings (Total) | 127,449 | 108,660 | 18,789 | | Lease Liabilities (Total) | 3,356 | 5,340 | (1,984) | - The weighted average expected loss rate for trade receivables was adjusted across different aging buckets, with an expected loss rate of up to **89%** for receivables over one year old[28](index=28&type=chunk) - Approximately **RMB 3,034 thousand** of bank deposits were frozen by Chinese courts due to employee labor contract compensation lawsuits[41](index=41&type=chunk) - The weighted average annual interest rate for bank borrowings increased from **4.2%** as of December 31, 2024, to **4.5%** as of June 30, 2025[32](index=32&type=chunk) - The company did not declare any interim dividends and was not involved in any material litigation or arbitration[40](index=40&type=chunk)[42](index=42&type=chunk) [Management Discussion and Analysis](index=21&type=section&id=Management%20Discussion%20and%20Analysis) [Industry Background Analysis](index=21&type=section&id=4.1%20Industry%20Background%20Analysis) China's economy saw steady growth in H1 2025, with the digital economy and IT services sector expanding significantly, driven by financial sector AI and big data investments and a growing banking IT solutions market - In H1 2025, China's GDP grew by **5.3%** year-on-year, with the information transmission, software, and IT services sector growing by **11.1%**, and the financial sector by **7.3%**[43](index=43&type=chunk) - Financial regulators require commercial banks to increase technology investment to over **3%** of operating revenue, focusing on core technologies like AI, big data, and blockchain[43](index=43&type=chunk) - IDC forecasts China's banking IT solutions market to reach **RMB 103.939 billion** by 2029, with a **2.9%** year-on-year growth in 2024, and anticipates **65%** of financial institutions leveraging AI large model platforms to enhance digital intelligence by the end of 2025[45](index=45&type=chunk) - China's big data industry is reshaping the digital economy landscape with an average annual growth rate of **20%**, projected to exceed **RMB 2.8 trillion** by 2025 and **RMB 6.5 trillion** by 2030[46](index=46&type=chunk) [Business Review](index=22&type=section&id=4.2%20Business%20Review) The Group strengthened its market position in data intelligence and marketing technology through collaborations with major banks, expanded into new ventures like the 'Quanxinrong Platform,' and recognized fair value gains from strategic investments, while a share placement enhanced financing for debt repayment and working capital - The Group continuously signed cooperation projects with a major state-owned bank's head office and its Shenzhen and Macau branches, covering data warehouse application migration, credit corporate cards, basic platform upgrades, precision marketing, Xinchuang transformation, payroll systems, and operation and maintenance[47](index=47&type=chunk) - The Group secured a 'Model Development' project with a state-owned commercial bank in Southeast China, enhancing its AI analytical modeling capabilities for data-driven decision-making, and also secured 'Database' and 'Business System Xinchuang Transformation' projects[48](index=48&type=chunk) - A partnership was established with Quanzhou Data Group to jointly operate the 'Quanxinrong Platform,' exploring innovative cooperation models to provide convenient and efficient financial services to SMEs in Quanzhou[50](index=50&type=chunk) - The acquisition of **15,000,000** ordinary shares of Tokyo Chuo Auction Holdings Limited for **HKD 6.6 million** resulted in a recognized fair value gain of approximately **HKD 67.65 million**, marking the Group's diversification efforts[51](index=51&type=chunk) - A placement of **130,000,000** shares was completed, yielding net proceeds of approximately **HKD 38.6 million**, with **80%** allocated to debt repayment and **20%** to general working capital[53](index=53&type=chunk) [Future Outlook](index=26&type=section&id=4.3%20Future%20Outlook) The Group plans to strengthen core financial services, deepen data intelligence and marketing technology, and expand into digital assets, data element marketization, and IT integration. It will also explore Web3.0 and cryptocurrency assets, and partner with domestic GPU vendors to build integrated 'hardware+software+solution' capabilities for new growth - The Group will continue to deepen its presence in the FinTech sector, optimize client portfolio, expand its national market footprint, strengthen strategic relationships with key major clients, and actively broaden its client base across wider industries[55](index=55&type=chunk) - The Group will firmly focus on data intelligence and marketing technology, leveraging its end-to-end full-link data capabilities to strengthen its in-depth professional layout[56](index=56&type=chunk) - The Group plans to actively enter the Web3.0 and cryptocurrency asset sectors, investing in digital assets and fostering on-chain financial resources to accelerate the transformation of traditional financial services to on-chain, focusing on digital asset services in Greater China[57](index=57&type=chunk) - Plans include collaborating with domestic GPU hardware manufacturers to build integrated 'hardware + software + industry solution' capabilities centered on domestic GPUs, establishing an innovation business unit to cultivate cutting-edge technology applications such as AI, blockchain, software-hardware integration, and digital asset trading[58](index=58&type=chunk) - The Group will deepen its 'investment empowerment' model, continuously exploring value investment opportunities, integrating investment into a new growth paradigm, and achieving synergistic innovation and value enhancement through post-investment deep empowerment of enterprise development[58](index=58&type=chunk) [Financial Performance Analysis](index=28&type=section&id=4.4%20Financial%20Performance%20Analysis) Revenue declined 33.5% and gross profit 37.5% due to business restructuring, but significant reductions in selling, R&D, and administrative expenses, coupled with fair value gains, led to a profit of RMB 41,098 thousand for the period Financial Performance Metrics | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Y-o-Y Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 120,392 | 181,011 | (60,619) | -33.5% | | Gross Profit | 9,111 | 14,577 | (5,466) | -37.5% | | Gross Profit Margin | 7.6% | 8.1% | -0.5% | - | | Selling Expenses | 2,586 | 5,528 | (2,942) | -53.2% | | R&D Expenses | 7,385 | 19,449 | (12,064) | -62.0% | | Administrative Expenses | 20,983 | 24,053 | (3,070) | -12.8% | | Income Tax Credit | 167 | 473 | (306) | -64.7% | | Profit for the Period | 41,098 | (38,635) | 79,733 | Turnaround to Profit | | Profit for the Period Attributable to Owners of the Company | 43,186 | (36,040) | 79,226 | Turnaround to Profit | | Basic EPS (RMB cents) | 6.28 | (5.48) | Turnaround to Profit | - | - The decrease in selling expenses was primarily due to organizational restructuring and optimized remuneration incentive mechanisms[61](index=61&type=chunk) - The reduction in R&D expenses was mainly due to the increasing maturity of previously developed products, shifting focus to product promotion and application[62](index=62&type=chunk) - The decrease in administrative expenses was primarily due to the optimization of the administrative management team and reduced office expenses[63](index=63&type=chunk) [Liquidity and Financial Resources](index=30&type=section&id=4.5%20Liquidity%20and%20Financial%20Resources) Net cash outflow from operating activities decreased, while investing outflow increased due to an acquisition. Financing inflow significantly rose from share issuance, leading to a reduced gearing ratio of 110.9% and improved financial position Cash Flow Summary | Cash Flow Type | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Net cash from/(used in) operating activities | (30,650) | (32,104) | 1,454 (Decreased outflow) | | Net cash from/(used in) investing activities | (6,796) | (5,308) | (1,488) (Increased outflow) | | Net cash from/(used in) financing activities | 47,079 | (7,228) | 54,307 (Turned from outflow to inflow) | - The decrease in net cash used in operating activities was primarily due to reduced project procurement, payroll expenses, and other miscellaneous expenditures[69](index=69&type=chunk) - The increase in net cash used in investing activities was mainly due to the acquisition of shares in Tokyo Chuo Auction Holdings Limited, resulting in a cash outflow of approximately **RMB 6,197 thousand**[70](index=70&type=chunk) - Net cash generated from financing activities significantly increased, primarily due to proceeds from share issuance of approximately **RMB 36,086 thousand** during the reporting period[71](index=71&type=chunk) - The gearing ratio decreased from **277.9%** as of December 31, 2024, to **110.9%** as of June 30, 2025, primarily due to an increase in total equity of approximately **RMB 74,753 thousand**[76](index=76&type=chunk) [Material Investments and Risk Management](index=33&type=section&id=4.6%20Material%20Investments%20and%20Risk%20Management) The company holds **15,000,000** ordinary shares of Tokyo Chuo Auction Holdings Limited, valued at approximately **RMB 67.7 million**, with no other material investments or capital commitments. Foreign exchange risks are managed, and no other significant investment plans exist - As of June 30, 2025, the company held **15,000,000** ordinary shares of Tokyo Chuo Auction Holdings Limited, with a carrying amount of approximately **RMB 67.7 million**[78](index=78&type=chunk) - The Group is exposed to certain foreign currency risks and implements management policies to closely monitor exchange rate fluctuations, regularly review foreign exchange risks, and consider hedging when necessary[81](index=81&type=chunk) - The Group currently has no other material investment or capital asset plans[82](index=82&type=chunk) [Other Information](index=34&type=section&id=Other%20Information) [Remuneration Policy and Employee Benefits](index=34&type=section&id=5.1%20Remuneration%20Policy%20and%20Employee%20Benefits) As of June 30, 2025, the Group employed **183** staff, providing competitive remuneration and benefits, with no labor disputes or recruitment difficulties for experienced personnel - As of June 30, 2025, the Group had a total of **183** employees in mainland China and Hong Kong[83](index=83&type=chunk) - The Group provides employees with comprehensive and competitive remuneration, retirement plans, and benefits, along with discretionary bonuses based on employee performance[83](index=83&type=chunk) - During the reporting period, the Group did not encounter any serious issues with employees due to labor disputes or experience operational disruptions[83](index=83&type=chunk) [Use of Proceeds from Share Placement](index=35&type=section&id=5.2%20Use%20of%20Proceeds%20from%20Share%20Placement) A share placement on May 21, 2025, yielded net proceeds of approximately **HKD 38.6 million**, primarily used for debt repayment (**HKD 29.6 million**) and general working capital (**HKD 7.7 million**), with **HKD 1.3 million** unutilized - On May 21, 2025, the company completed a placement of **130,000,000** shares, with net proceeds of approximately **HKD 38.6 million**[86](index=86&type=chunk) Use of Share Placement Proceeds | Purpose | Allocation Ratio | Allocated Amount (HKD millions) | Utilized Amount (HKD millions) | Unutilized Amount (HKD millions) | | :--- | :--- | :--- | :--- | :--- | | Repayment of Group Borrowings | 80% | 30.9 | 29.6 | 1.3 | | Replenishment of General Working Capital | 20% | 7.7 | 7.7 | - | | **Total** | **100%** | **38.6** | **37.3** | **1.3** | [Corporate Governance and Compliance](index=35&type=section&id=5.3%20Corporate%20Governance%20and%20Compliance) The company adheres to HKEX Corporate Governance Code, maintains consistent leadership with a combined Chairman/CEO role, and achieved full compliance with independent non-executive director requirements. It maintained sufficient public float and had no material litigation - The company has adopted the HKEX Corporate Governance Code and Model Code as the foundation for its corporate governance practices[88](index=88&type=chunk)[91](index=91&type=chunk) - Mr. Xue Shouguang serves as both Chairman of the Board and Chief Executive Officer, a structure the Board believes ensures consistent leadership[88](index=88&type=chunk) - The company previously had non-compliance issues regarding the number of independent non-executive directors and audit committee members but achieved full compliance after the appointment of Ms. Chu Ji Jun on March 14, 2025[89](index=89&type=chunk)[90](index=90&type=chunk) - The company has maintained a sufficient public float, with at least **25%** of its issued shares held by the public as required by the Listing Rules[93](index=93&type=chunk) - During the reporting period, the company was not involved in any material litigation or arbitration[94](index=94&type=chunk) [Review and Publication of Financial Information](index=37&type=section&id=5.4%20Review%20and%20Publication%20of%20Financial%20Information) The Audit Committee reviewed the unaudited interim condensed consolidated financial information, confirming fair presentation under applicable accounting standards, with the interim results announcement and report to be published on HKEX and the company website - The Audit Committee has reviewed the Group's unaudited interim condensed consolidated financial information and is satisfied that it is prepared in accordance with applicable accounting standards and presents fairly[95](index=95&type=chunk) - The Group's interim condensed consolidated financial information for the reporting period has not been audited by the company's auditors[96](index=96&type=chunk) - This interim results announcement will be published on the HKEX website and the company's website, and the interim report will be dispatched to shareholders in due course[98](index=98&type=chunk)