Core Viewpoint - The company reported strong financial performance for 1H25, with revenue and net profit attributable to shareholders reaching 1.61 billion and 190 million yuan, respectively, representing year-on-year growth of 22% and 36% [1] Group 1: MaaS Business - The MaaS business generated revenue of 500 million yuan, up 19% year-on-year, driven by a 14% increase in average revenue per core customer to 2.28 million yuan [2] - The number of core customers increased by 2 to 167, with a customer retention rate rising to 98% [2] - The estimated gross margin for the MaaS business is 84%, despite a decline from 88% in 1H24, indicating strong profitability [2] Group 2: BaaS Financial Cloud - The BaaS financial cloud revenue grew by 45% to 860 million yuan, becoming the main driver of the company's overall revenue growth [3] - The growth in BaaS financial cloud revenue is attributed to the recovery in credit demand and enhanced generative AI capabilities, which boosted asset transaction volumes [3] - The company launched several AI products, forming a complete AI product matrix that has been applied in both financial and educational sectors [3] Group 3: BaaS Insurance Cloud - The BaaS insurance cloud facilitated first-year and renewal premiums of 2 billion and 1.1 billion yuan, respectively, reflecting year-on-year growth of 5% and 15% [4] - Despite the growth in premiums, the insurance cloud revenue declined by 19% to 250 million yuan, primarily due to the "reporting and banking integration" policy and a decrease in preset interest rates [4] - The company is leveraging AI technology to enhance efficiency and customer experience in the insurance cloud business, with nearly 100 branches across over 20 provinces and municipalities [4] Group 4: Profit Forecast and Valuation - The company has raised its net profit forecasts for 2025, 2026, and 2027 to 300 million, 430 million, and 700 million yuan, respectively, reflecting increases of 23%, 8%, and 15% [4] - The target price has been adjusted to 15.2 HKD from 13.1 HKD, based on a DCF valuation method with an equity cost of 8%, implying a 2025E PE of 17x [4]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 15.20 HKD [7][12]. Core Insights - The company reported a significant profit growth in 1H25, with revenue and net profit reaching 1.61 billion and 190 million RMB, respectively, representing year-on-year increases of 22% and 36% [1]. - The strong performance is attributed to a 45% increase in BaaS financial cloud revenue, driven by an increase in asset transaction scale and the company's ongoing AI commercialization efforts [1][3]. - The MaaS business also showed growth, with revenue increasing by 19% to 500 million RMB, supported by a 14% rise in average revenue per core customer [2]. Summary by Sections Financial Performance - In 1H25, the company's revenue reached 1.61 billion RMB, and net profit was 190 million RMB, exceeding previous expectations [1]. - The annualized net profit forecast for 2025, 2026, and 2027 has been adjusted to 300 million, 430 million, and 700 million RMB, respectively, reflecting growth rates of 23%, 8%, and 15% [5]. BaaS Financial Cloud - The BaaS financial cloud segment generated 860 million RMB in revenue, a 45% increase year-on-year, primarily due to improved credit demand and enhanced generative AI capabilities [3]. - The company has developed a complete AI product matrix, including the BR-LLM large language model and various enterprise-level AI products [3]. MaaS Business - The MaaS business reported revenue of 500 million RMB, with a 19% year-on-year increase, driven by a 14% rise in average revenue per core customer to 2.28 million RMB [2]. - The core customer retention rate improved to 98%, indicating strong customer loyalty [2]. BaaS Insurance Cloud - The BaaS insurance cloud segment saw first-year and renewal premium growth of 5% and 15%, respectively, but revenue declined by 19% to 250 million RMB due to lower service fee rates influenced by regulatory changes [4]. - The company is leveraging AI technology to enhance efficiency and customer experience in the insurance cloud business [4]. Valuation - The target price for the company has been raised to 15.20 HKD from 13.10 HKD, based on a DCF valuation method [5][12]. - The implied PE for 2025 is projected at 17 times [5].

Core Viewpoint - Baidu Cloud-W (06608.HK) reported a significant increase in its interim financial results for the six months ending June 30, 2025, with notable growth in revenue and profit metrics, leading to a stock price increase of 9.88% on the Hong Kong stock market [1]. Financial Performance Summary - Revenue reached 1.612 billion RMB, representing a year-on-year growth of 22% [3]. - Operating profit was 201 million RMB, up 28% compared to the previous period [3]. - Net profit for the period was 201 million RMB, reflecting a 41% increase year-on-year [3]. - Profit attributable to equity shareholders was 190 million RMB, showing a growth of 36% [1][3]. - Non-IFRS profit for the period was 254 million RMB, which is a 29% increase compared to the previous year [1][3]. - EBITDA under IFRS was 283 million RMB, marking a 16% increase [3]. Business Segment Performance - The "Model as a Service" (MaaS) segment generated 502 million RMB, a 19% increase [3]. - The "Business as a Service" (BaaS) segment reported revenue of 1.110 billion RMB, up 23% [3]. - Within BaaS, the financial industry cloud contributed 857 million RMB, a substantial growth of 45% [3]. - The insurance industry cloud segment saw a decline, with revenue of 253 million RMB, down 19% [3].

Core Viewpoint - The company reported a significant increase in revenue and profit for the six months ending June 30, 2025, driven by enhanced product and service capabilities and macroeconomic recovery [1] Financial Performance - Revenue reached 1.612 billion RMB, representing a year-on-year increase of 21.98% [1] - Shareholder profit amounted to 190 million RMB, reflecting a year-on-year growth of 35.95% [1] - Basic earnings per share were reported at 0.43 RMB [1] Factors Influencing Performance - The increase in revenue is attributed to the company's continuous improvement in product and service capabilities [1] - The macroeconomic recovery has also played a significant role in the company's performance [1]

Core Viewpoint - The company has demonstrated strong growth momentum and sustained profitability in the first half of 2025, driven by advancements in artificial intelligence research, application, and commercialization [1][2] Financial Performance - The company's revenue for the six months ending June 30, 2025, reached RMB 1.6118 billion, representing a year-on-year increase of 22% from RMB 1.3214 billion for the same period in 2024 [1] - The non-IFRS profit for the same period was RMB 254.5 million, with a healthy profit margin of 16%, an increase of 1 percentage point year-on-year [1] Technological Advancements - The commercial deployment of the CybotStar enterprise-level intelligent agent platform accelerated, with multiple contracts signed with various institutions [1] - The company has successfully scaled production of proactive large models and multi-emotional voice synthesis models, enhancing model iteration efficiency through the implementation of the GRPO reinforcement learning framework [1] Infrastructure Development - The first phase of the high-performance data center has been completed and put into operation, with a self-developed heterogeneous computing cluster launched to support various GPU types [1] - The infrastructure improvements enable deep adaptation for language models, TTS models, and multimodal models, laying a solid foundation for larger-scale multi-scenario deployments in the second half of the year [1] Market Positioning - The company leverages its AI capabilities through products like VoiceGPT and the CybotStar platform, embedding AI solutions across various high-potential sectors such as telecommunications, healthcare, and retail [2] - The company provides a one-stop AI experience and applications for benchmark clients, reinforcing its leading position in the commercialization of AI across industries [2]

[Company Overview](index=1&type=section&id=Company%20Overview) This section provides an overview of the company's interim results, financial highlights, operational achievements, and strategic market positioning [Announcement Information](index=1&type=section&id=Announcement%20Information) This announcement presents Bairong Inc.'s unaudited interim results for the six months ended June 30, 2025, which have been reviewed by the company's audit committee - This announcement presents Bairong Inc.'s unaudited interim results for the six months ended June 30, 2025, reviewed by the company's audit committee[2](index=2&type=chunk) [Financial Highlights](index=2&type=section&id=Financial%20Highlights) The company sustained and strengthened its growth momentum during the reporting period, achieving significant increases in revenue and profit, with healthy non-IFRS profit and margin levels demonstrating sustained profitability Financial Highlights for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,611,797 | 1,321,348 | 22 | | MaaS | 501,941 | 421,352 | 19 | | BaaS | 1,109,856 | 899,996 | 23 | | BaaS – Financial Industry Cloud | 856,957 | 589,473 | 45 | | BaaS – Insurance Industry Cloud | 252,899 | 310,523 | (19) | | Gross Profit | 1,182,428 | 967,155 | 22 | | Operating Profit | 200,894 | 156,832 | 28 | | Profit for the Period | 201,224 | 142,833 | 41 | | Non-IFRS Profit | 254,449 | 197,479 | 29 | | Non-IFRS EBITDA | 282,539 | 243,481 | 16 | - In the first half of 2025, the company's revenue reached **RMB 1,611.80 million**, a **22% year-on-year increase**; non-IFRS profit was **RMB 254.45 million**, with a non-IFRS profit margin maintained at **16%**, a **1 percentage point increase** year-on-year[4](index=4&type=chunk) [Operational Highlights](index=3&type=section&id=Operational%20Highlights) The company made significant progress in AI R&D and commercialization, launching the CybotStar enterprise-grade intelligent agent platform, deploying large models and multi-emotional speech synthesis, strengthening AI infrastructure, and embedding AI capabilities into high-potential sectors - Successfully launched the CybotStar enterprise-grade intelligent agent platform, optimizing customer experience and interaction, with agreements signed with multiple institutions[5](index=5&type=chunk) - Pioneered the large-scale production deployment of proactive large models and multi-emotional speech synthesis models, implementing the GRPO reinforcement learning framework to significantly enhance model iteration efficiency[5](index=5&type=chunk) - The first phase of the Gaodian computer room was completed and put into operation, with a self-developed heterogeneous computing cluster launched, fully compatible with various GPUs, laying the foundation for large-scale multi-scenario deployment[5](index=5&type=chunk) - Leveraging VoiceGPT and the CybotStar platform, AI capabilities are deeply embedded into high-potential sectors such as telecommunications, healthcare, and large retail, providing AIGC application services[6](index=6&type=chunk) [Operational Review](index=4&type=section&id=Operational%20Review) As a continuously profitable AI cloud service provider, the company serves over 8,000 institutional clients in China, offering full-chain solutions using generative and decisive AI, benefiting from China's digitalization and AI policy dividends to solidify its industry-leading position [Business Model and Technological Advantages](index=4&type=section&id=Business%20Model%20and%20Technological%20Advantages) - The company is a continuously profitable AI cloud service provider, serving over **8,000 institutional clients** in China, including most state-owned banks, joint-stock banks, and regional banks[7](index=7&type=chunk) - Utilizes generative AI, decisive AI, big data, machine learning, and cloud computing to provide full-chain products and solutions covering intelligent customer acquisition, risk control, operations, and user relationship management[7](index=7&type=chunk) - Focuses on AI application development rather than infrastructure construction, ensuring successful commercialization of AIGC applications[7](index=7&type=chunk) - As of June 30, 2025, the company obtained **461 patents and software copyrights**, covering key areas such as artificial intelligence, machine learning, and privacy computing[10](index=10&type=chunk) [Market Environment and Strategic Opportunities](index=4&type=section&id=Market%20Environment%20and%20Strategic%20Opportunities) - Benefited from the warming policy and industry environment for digitalization and artificial intelligence, including the "Digital China Construction 2025 Action Plan," the formation of industry standards, and the release of B-side demand[9](index=9&type=chunk) - 2025 is widely defined by the industry as the "Year of the Agent," and the company will continue to benefit from strategic opportunities in "Data Elements ×" and "AI + hundreds of industries"[9](index=9&type=chunk) [Business Performance](index=5&type=section&id=Business%20Performance) [Model-as-a-Service (MaaS) Business](index=5&type=section&id=Model-as-a-Service%20(MaaS)%20Business) The MaaS business assists institutions in intelligent decision-making by outputting models, leveraging the company's over ten years of user profiling assets and cloud platform advantages, achieving a 19% year-on-year revenue growth and a high core client retention rate of 98%, demonstrating robust profitability [MaaS Business Introduction](index=5&type=section&id=MaaS%20Business%20Introduction) - MaaS business assists institutions in intelligent decision-making by outputting models and evaluation results, with core advantages in over **ten years of user profiling assets** and an accumulation of over **8,000 clients**[13](index=13&type=chunk) - The MaaS cloud platform is secure and reliable, with stability as high as **99.999%**, providing over **300 million** various query requests daily[13](index=13&type=chunk) - The business model involves charging service fees or annual fees based on query volume, allowing for rapid cost dilution and substantial profits as scale expands[13](index=13&type=chunk) [MaaS Key Metrics](index=6&type=section&id=MaaS%20Key%20Metrics) MaaS Key Metrics (for the Six Months Ended June 30) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | MaaS Revenue | 501,941 | 421,352 | 19 | | Core Client Revenue | 380,534 | 329,398 | 16 | | Number of Core Clients | 167 | 165 | 1 | | Average Revenue per Core Client | 2,279 | 1,996 | 14 | | Core Client Retention Rate | 98% | 96% | 2pp | - MaaS business revenue increased **19% year-on-year** to **RMB 501.94 million**, with **167 core clients** and a core client retention rate of **98%**[14](index=14&type=chunk) [Business-as-a-Service (BaaS) Business](index=7&type=section&id=Business-as-a-Service%20(BaaS)%20Business) The BaaS business, based on generative AI technology, assists institutions with intelligent marketing and operations through products like AI VoiceGPT, adopting performance-driven pricing and achieving commercial breakthroughs in financial and general industry sectors, with strong growth in Financial Industry Cloud revenue and resilience in Insurance Industry Cloud [BaaS Business Introduction](index=7&type=section&id=BaaS%20Business%20Introduction) - BaaS business, based on generative AI technology, assists institutions in intelligent marketing and operations through self-developed AI VoiceGPT, enhancing asset operation efficiency in credit, wealth management, insurance, and internet technology industries[18](index=18&type=chunk) - AI VoiceGPT can simulate human voices for smooth multi-round conversations, with semantic understanding accuracy exceeding **99%**[18](index=18&type=chunk) - BaaS business adopts a performance-driven pricing structure, charging technical service fees or commissions based on the scale of transactions facilitated, without upfront fees, and is responsible for clients' ultimate performance KPIs[18](index=18&type=chunk) [BaaS Financial Industry Cloud](index=8&type=section&id=BaaS%20Financial%20Industry%20Cloud) BaaS Financial Industry Cloud leverages AIGC and decisive AI to provide integrated full-process services for financial institutions, achieving innovative applications in green finance and education, with a 45% year-on-year revenue growth, demonstrating strong market expansion capabilities [Financial Industry Cloud Business Details](index=8&type=section&id=Financial%20Industry%20Cloud%20Business%20Details) - BaaS Financial Industry Cloud utilizes AIGC to efficiently acquire new users and operate existing ones, helping banks, consumer finance, internet finance, securities, and wealth management institutions revitalize assets[19](index=19&type=chunk) - The self-developed large language model BR-LLM officially passed large model备案, and based on this, innovative products such as the CybotStar enterprise-grade intelligent agent platform, digital humans, and VoiceGPT intelligent voice were launched[20](index=20&type=chunk) - In the financial sector, a one-stop green finance solution was created, applying machine learning, OCR, NLP, and the BR-LLM large model to build an intelligent system for banks covering ten scenarios, including green certification and ESG evaluation[20](index=20&type=chunk) - In the education sector, a mental health assessment integrated machine was launched, providing innovative mental health services through the ultra-realistic digital human "Little Wukong," enhancing the efficiency and coverage of school mental health work[21](index=21&type=chunk) [BaaS - Financial Industry Cloud Key Metrics](index=9&type=section&id=BaaS%20-%20Financial%20Industry%20Cloud%20Key%20Metrics) BaaS Financial Industry Cloud Key Metrics (for the Six Months Ended June 30) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | BaaS – Financial Industry Cloud Revenue | 856,957 | 589,473 | 45 | - BaaS Financial Industry Cloud revenue was **RMB 856.96 million**, a **45% year-on-year increase**[21](index=21&type=chunk) [BaaS Insurance Industry Cloud](index=10&type=section&id=BaaS%20Insurance%20Industry%20Cloud) BaaS Insurance Industry Cloud empowers thousands of insurance agents through the Riyue Baobox application, demonstrating resilience in a challenging economic and operational environment, enhancing efficiency with AI technology, achieving a 9% year-on-year increase in premium transactions, despite a 19% year-on-year revenue decrease [Insurance Industry Cloud Business Details](index=10&type=section&id=Insurance%20Industry%20Cloud%20Business%20Details) - Insurance Industry Cloud empowers thousands of insurance agents through the Riyue Baobox application, providing tools for user management, talent management, and automated signing processes[24](index=24&type=chunk) - Utilizes decisive AI for customer insights, generative AI for precise insurance product recommendations, and an offline agent team for high-value policy user retention[24](index=24&type=chunk) - Actively responds to more prudent industry regulations, enhancing business efficiency and customer experience through AI technology, reducing costs, and adapting to the "reporting and execution alignment" policy requirements[24](index=24&type=chunk) [BaaS - Insurance Industry Cloud Key Metrics](index=10&type=section&id=BaaS%20-%20Insurance%20Industry%20Cloud%20Key%20Metrics) BaaS Insurance Industry Cloud Key Metrics (for the Six Months Ended June 30) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | BaaS – Insurance Industry Cloud Revenue | 252,899 | 310,523 | (19) | | First-Year Premium Income | 203,963 | 254,658 | (20) | | First-Year Premiums | 2,006,151 | 1,904,544 | 5 | | Renewal Premium Income | 48,936 | 55,865 | (12) | | Renewal Premiums | 1,112,639 | 968,119 | 15 | - BaaS Insurance Industry Cloud revenue decreased **19% year-on-year** to **RMB 252.90 million**, but transaction premiums increased **9% year-on-year** to **RMB 3,118.79 million**, with a life insurance premium persistency rate exceeding **90%**[25](index=25&type=chunk) [Future Outlook and Strategy](index=11&type=section&id=Future%20Outlook%20and%20Strategy) [Macroeconomic Assessment and AI Strategy](index=11&type=section&id=Macroeconomic%20Assessment%20and%20AI%20Strategy) The company assesses a resilient macroeconomic environment, with the explosion of generative AI creating new opportunities across industries, and prioritizes "fully embracing AI" as its top strategic goal, focusing resources on iterating generative and decisive AI to accelerate the closed-loop from laboratory to large-scale commercialization - Macroeconomic assessment indicates economic resilience, with the explosion of generative AI opening up incremental opportunities across industries, supported by national policies for AI development[28](index=28&type=chunk) - The company prioritizes "fully embracing AI" as its top strategic goal, concentrating resources on iterating generative and decisive AI, and accelerating the closed-loop from laboratory to large-scale commercialization[28](index=28&type=chunk) [R&D Strategy](index=11&type=section&id=R%26D%20Strategy) The R&D strategy focuses on continuously attracting top algorithm scientists and engineering talent, while simultaneously refining NLP, AutoML, privacy computing, and AI Agent collaboration frameworks, with a key emphasis on enhancing voice robot multilingual coverage, emotional recognition, and multi-agent collaboration capabilities to solidify its position in the industry's top tier - Continuously attracts top algorithm scientists and engineering talent, complemented by internal "AI training camps" to enhance overall AI density[28](index=28&type=chunk) - Simultaneously refines NLP, AutoML, privacy computing, and AI Agent collaboration frameworks, with a key focus on enhancing voice robot multilingual coverage, emotional recognition, and multi-agent collaboration capabilities[28](index=28&type=chunk) [Business Strategy](index=11&type=section&id=Business%20Strategy) The business strategy aims to deeply cultivate financial scenarios such as wealth management and securities, while horizontally accelerating the export of "model + scenario" integrated solutions to non-financial sectors like healthcare, education, and retail, and, while strictly adhering to privacy and data security, connecting supply and demand to form a positive flywheel of technological capability, experience accumulation, commercialization, and technology feedback - Continues to deeply cultivate financial scenarios such as wealth management and securities, using AI to drive refined operations and risk control[28](index=28&type=chunk) - Accelerates the export of "model + scenario" integrated solutions to non-financial sectors such as healthcare, education, retail, and recruitment, helping B-side clients reduce costs and increase efficiency, and C-side users receive more precise service matching[28](index=28&type=chunk) - While strictly adhering to privacy and data security, connects supply and demand to form a positive flywheel of "technological capability → experience accumulation → commercialization → technology feedback"[28](index=28&type=chunk) [Financial Analysis](index=12&type=section&id=Financial%20Analysis) [Consolidated Income Statement Analysis](index=12&type=section&id=Consolidated%20Income%20Statement%20Analysis) During the reporting period, the company's total revenue and gross profit both increased by 22%, while R&D, sales, and marketing expenses significantly rose due to AI investments and market promotion, ultimately leading to a 41% year-on-year increase in profit for the period, demonstrating strong profitability [Revenue Analysis](index=13&type=section&id=Revenue%20Analysis) - Total revenue increased **22% year-on-year** to **RMB 1,611.80 million**, primarily driven by enhanced product and service capabilities and macroeconomic recovery[31](index=31&type=chunk) - MaaS revenue increased **19% year-on-year** to **RMB 501.94 million**, mainly due to expanded application areas and optimized AI algorithms[31](index=31&type=chunk) - BaaS Financial Industry Cloud revenue increased **45% year-on-year** to **RMB 856.96 million**, primarily due to strong credit demand, improved operational efficiency, and enhanced generative AI capabilities[31](index=31&type=chunk) - BaaS Insurance Industry Cloud revenue decreased **19% year-on-year** to **RMB 252.90 million**, but premiums continued to grow despite declining product pre-set interest rates[32](index=32&type=chunk) [Cost of Sales and Gross Profit](index=13&type=section&id=Cost%20of%20Sales%20and%20Gross%20Profit) - Cost of sales increased **21% year-on-year** to **RMB 429.37 million**, consistent with business scale growth[33](index=33&type=chunk) - Gross profit increased **22% year-on-year** to **RMB 1,182.43 million**, with gross margin remaining stable at **73%**[34](index=34&type=chunk) [Expense Analysis](index=13&type=section&id=Expense%20Analysis) - R&D expenses increased **33% year-on-year** to **RMB 301.54 million**, primarily due to increased company investment in AI, with its proportion of revenue rising by **2 percentage points** to **19%**[35](index=35&type=chunk) - General and administrative expenses remained stable year-on-year at **RMB 140.21 million**[36](index=36&type=chunk) - Sales and marketing expenses increased **20% year-on-year** to **RMB 606.28 million**, primarily for efficient acquisition of new users, improved conversion efficiency, and brand promotion[37](index=37&type=chunk) [Other Income and Profit for the Period](index=14&type=section&id=Other%20Income%20and%20Profit%20for%20the%20Period) - Other net income increased **15% year-on-year** to **RMB 83.75 million**, mainly due to increased net gain from disposal of a subsidiary, partially offset by exchange losses[38](index=38&type=chunk) - Profit for the period increased **41% year-on-year** to **RMB 201.22 million**[39](index=39&type=chunk) [Non-IFRS Measures](index=14&type=section&id=Non-IFRS%20Measures) The company uses non-IFRS profit and EBITDA as supplementary financial indicators to better reflect core operating performance, with non-IFRS profit increasing by 29% and non-IFRS EBITDA by 16% year-on-year during the reporting period - The company uses non-IFRS profit and EBITDA as supplementary measures to eliminate the impact of non-indicative items such as share-based payments, facilitating comparison of operating performance[40](index=40&type=chunk) Reconciliation of Non-IFRS Measures (for the Six Months Ended June 30) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the Period | 201,224 | 142,833 | 41 | | Add: Share-based Payments | 53,225 | 54,646 | (3) | | **Non-IFRS Profit for the Period** | **254,449** | **197,479** | **29** | | Non-IFRS Profit Margin | 16% | 15% | 1pp | | EBITDA | 229,314 | 188,835 | 21 | | Add: Share-based Payments | 53,225 | 54,646 | (3) | | **Non-IFRS EBITDA** | **282,539** | **243,481** | **16** | | Non-IFRS EBITDA Margin | 18% | 18% | 0pp | [Consolidated Statement of Financial Position Analysis](index=16&type=section&id=Consolidated%20Statement%20of%20Financial%20Position%20Analysis) As of June 30, 2025, the company maintained ample cash and cash equivalents and cash reserves, with the gearing ratio significantly decreasing to 0.15, indicating a healthy financial structure and liquidity [Liquidity, Financing, and Borrowing Sources](index=16&type=section&id=Liquidity%2C%20Financing%2C%20and%20Borrowing%20Sources) - As of June 30, 2025, cash and cash equivalents were **RMB 833.52 million**, and cash reserves were **RMB 2,895.78 million**, maintaining ample liquidity[43](index=43&type=chunk) [Gearing Ratio](index=16&type=section&id=Gearing%20Ratio) - As of June 30, 2025, the gearing ratio was **0.15**, a decrease from **0.21** as of December 31, 2024[48](index=48&type=chunk) [Condensed Consolidated Cash Flow Statement](index=26&type=section&id=Condensed%20Consolidated%20Cash%20Flow%20Statement) During the reporting period, cash flow from operating activities turned positive, cash outflow from investing activities decreased, and cash outflow from financing activities also significantly reduced, resulting in a net increase in cash and cash equivalents Condensed Consolidated Cash Flow Statement (for the Six Months Ended June 30) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Cash from/(used in) Operating Activities | 150,740 | (126,671) | | Net Cash (used in)/from Investing Activities | (37,348) | 17,701 | | Net Cash used in Financing Activities | (53,885) | (176,599) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 59,507 | (285,569) | | Cash and Cash Equivalents at End of Period | 833,518 | 627,190 | [Corporate Governance and Other Information](index=17&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Employees and Remuneration](index=17&type=section&id=Employees%20and%20Remuneration) As of June 30, 2025, the company had 1,481 employees, with R&D personnel accounting for 57%, and total staff costs increased by 17.4% year-on-year, with employee incentives provided through share schemes - As of June 30, 2025, the Group had **1,481 employees**, with R&D personnel accounting for **57%**[52](index=52&type=chunk) - For the six months ended June 30, 2025, total staff costs were **RMB 495.39 million**, an increase of **17.4%** from **RMB 421.78 million** in the same period last year[52](index=52&type=chunk) - The company adopted the 2024 Share Scheme and Restricted Share Unit Scheme to incentivize employees[52](index=52&type=chunk) [Corporate Governance](index=18&type=section&id=Corporate%20Governance) The company is committed to high standards of corporate governance and complies with the Corporate Governance Code, though the roles of Chairman and Chief Executive Officer are combined, which the Board believes enhances strategic planning and decision-making efficiency - The company complies with the Corporate Governance Code, but the roles of Chairman and Chief Executive Officer are combined and held by Mr. Zhang Shaofeng, which the Board believes facilitates consistent leadership and efficient strategic planning[54](index=54&type=chunk) [Securities Transactions and Committees](index=18&type=section&id=Securities%20Transactions%20and%20Committees) The company complies with the standard code for directors' securities transactions and has an Audit Committee, Nomination Committee, Remuneration Committee, and Corporate Governance Committee, with the Audit Committee having reviewed the interim financial information. During the reporting period, the company repurchased 3,274,500 Class B shares to enhance shareholder value - The company has adopted a policy on securities dealing, and directors and relevant employees confirmed compliance with the code during the reporting period[55](index=55&type=chunk) - The Audit Committee, comprising three independent non-executive directors, reviewed the interim financial information and met with the independent auditor[56](index=56&type=chunk)[57](index=57&type=chunk) - For the six months ended June 30, 2025, the company repurchased a total of **3,274,500 Class B shares** on the Stock Exchange for a total consideration of approximately **HK$25.78 million**, to enhance long-term shareholder value[59](index=59&type=chunk) [Use of Proceeds from Global Offering](index=20&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) The company has utilized the net proceeds from its global offering for business expansion, R&D investments, strategic investments, and working capital, and has extended the utilization timetable for R&D investments and working capital to the end of 2026 - The net proceeds from the global offering, approximately **RMB 3,170.39 million**, were used for business expansion, R&D investments, strategic investments, and working capital[64](index=64&type=chunk)[65](index=65&type=chunk) Use of Proceeds from Global Offering and Utilization Status (as of June 30, 2025) | Purpose | IPO Proceeds (RMB million) | Proportion (%) | Net Unutilized Proceeds as of Jan 1, 2025 (RMB million) | Proceeds Utilized During Reporting Period (RMB million) | Unutilized Proceeds as of June 30, 2025 (RMB million) | Estimated Timetable for Full Utilization of Unutilized IPO Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Funding Business Expansion | 1,426.68 | 45 | – | – | – | Not Applicable | | Increasing R&D Investment | 951.12 | 30 | 252.32 | 182.05 | 70.27 | Before December 31, 2026 | | Strategic Investments and Acquisitions | 475.56 | 15 | – | – | – | Not Applicable | | Working Capital and General Corporate Purposes | 317.03 | 10 | 184.31 | 72.54 | 111.77 | Before December 31, 2026 | | **Total** | **3,170.39** | **100** | **436.63** | **254.59** | **182.04** | | - The estimated utilization timetable for R&D investments and working capital has been extended from the end of 2024 to the end of 2026[65](index=65&type=chunk) [Other Significant Matters](index=16&type=section&id=Other%20Significant%20Matters) During the reporting period, the company did not undertake any material investments, acquisitions, or disposals, had no pledged assets, material contingent liabilities, or capital commitments, was not involved in any material litigation, and the Board did not recommend an interim dividend [Material Investments, Acquisitions, and Disposals](index=16&type=section&id=Material%20Investments%2C%20Acquisitions%2C%20and%20Disposals) - For the six months ended June 30, 2025, the Group did not undertake or hold any material investments, nor were there any material acquisitions or disposals of subsidiaries, consolidated affiliated entities, or associates[44](index=44&type=chunk)[45](index=45&type=chunk) [Pledged Assets and Contingent Liabilities](index=16&type=section&id=Pledged%20Assets%20and%20Contingent%20Liabilities) - As of June 30, 2025, the Group had no pledged assets, nor any material contingent liabilities or capital commitments[46](index=46&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) [Material Litigation and Dividends](index=20&type=section&id=Material%20Litigation%20and%20Dividends) - For the six months ended June 30, 2025, the company was not involved in any material litigation or arbitration[62](index=62&type=chunk) - The Board did not recommend the payment of an interim dividend for the six months ended June 30, 2025[63](index=63&type=chunk) [Events After Reporting Period](index=21&type=section&id=Events%20After%20Reporting%20Period) - Other than those disclosed in this announcement, there were no other significant events after the reporting period that could affect the Group[66](index=66&type=chunk) [Notes to Financial Statements](index=27&type=section&id=Notes%20to%20Financial%20Statements) [Basis of Preparation and Accounting Policies](index=27&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) This interim financial report is prepared in accordance with the HKEX Listing Rules and IAS 34, reviewed by KPMG, with no material impact from accounting policy changes on the financial position - This interim financial report is prepared in accordance with the HKEX Listing Rules and IAS 34 "Interim Financial Reporting," and has been approved and authorized for issue by the Board[73](index=73&type=chunk) - KPMG has reviewed this interim financial report in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants[73](index=73&type=chunk) - IAS 21 (Revised) "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability" was applied during this accounting period, but it had no material impact on the interim financial report[74](index=74&type=chunk) [Revenue Breakdown](index=28&type=section&id=Revenue%20Breakdown) Revenue primarily originates from MaaS and BaaS services, with BaaS Financial Industry Cloud being the largest contributor, and revenue recognition predominantly completed at a point in time Revenue by Category (for the Six Months Ended June 30) | Revenue Category | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | MaaS | 501,941 | 421,352 | | BaaS – Financial Industry Cloud | 856,957 | 589,473 | | BaaS – Insurance Industry Cloud | 252,899 | 310,523 | | **Total** | **1,611,797** | **1,321,348** | Revenue from Contracts with Customers Disaggregated by Timing of Revenue Recognition (for the Six Months Ended June 30) | Timing of Recognition | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | At a point in time | 1,007,959 | 751,894 | | Over a period of time | 603,838 | 569,454 | | **Total** | **1,611,797** | **1,321,348** | [Other Income Breakdown](index=29&type=section&id=Other%20Income%20Breakdown) Other income primarily includes net gains from financial investments, interest income from time deposits, net gain from disposal of a subsidiary, and government grants, with a significant increase in net gain from disposal of a subsidiary Other Income Breakdown (for the Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net gain from financial investments measured at fair value through profit or loss | 23,209 | 22,501 | | Interest income from time deposits | 23,057 | 40,608 | | Net gain from disposal of a subsidiary | 22,858 | – | | Government grants and others | 18,775 | 11,149 | | Foreign currency exchange losses | (4,381) | (1,228) | | Fixed coupon note income | 229 | – | | **Total** | **83,747** | **73,030** | [Profit Before Tax Breakdown](index=29&type=section&id=Profit%20Before%20Tax%20Breakdown) Profit before tax is influenced by financial income, financial costs, staff costs, BaaS-related commissions, and depreciation and amortization, with staff costs and BaaS-related expenses being major components Financial Income and Costs (for the Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest income from bank deposits | 8,941 | 2,113 | | Interest expense on lease liabilities | (3,242) | (1,757) | | Interest expense on bank loans | – | (1,814) | Staff Costs Breakdown (for the Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Salaries, wages and other benefits | 402,752 | 336,998 | | Equity-settled share-based payment expenses | 53,225 | 54,646 | | Contributions to defined contribution retirement plans | 34,679 | 29,024 | | Termination benefits | 4,729 | 1,109 | | **Total** | **495,385** | **421,777** | Other Items Breakdown (for the Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Analytics service costs | 77,807 | 51,569 | | BaaS-related insurance brokerage commissions, operating and marketing expenses | 704,602 | 548,173 | | Depreciation of property, plant and equipment | 14,639 | 12,258 | | Amortization of intangible assets | 638 | 3,639 | | Depreciation of right-of-use assets | 18,338 | 18,023 | | Impairment losses – receivables and others | 11,496 | 3,964 | | Impairment losses – loans | 5,759 | 7,022 | [Income Tax Expense](index=30&type=section&id=Income%20Tax%20Expense) During the reporting period, income tax expense primarily consisted of current tax provision for China corporate income tax and changes in deferred tax assets/liabilities Income Tax Expense Breakdown (for the Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current tax – Provision for China corporate income tax for the period | 2,170 | 10,868 | | Deferred tax – Change in deferred tax assets/liabilities | (1,996) | (244) | | **Total** | **174** | **10,624** | [Basic and Diluted Earnings Per Share](index=31&type=section&id=Basic%20and%20Diluted%20Earnings%20Per%20Share) During the reporting period, the net profit attributable to equity holders of the company increased, leading to an improvement in both basic and diluted earnings per share Basic and Diluted Earnings Per Share (for the Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net profit attributable to equity holders of the company (RMB thousands) | 190,264 | 139,956 | | Weighted average number of ordinary shares | 442,648,756 | 469,905,966 | | **Basic earnings per share attributable to equity holders of the company (RMB)** | **0.43** | **0.30** | | Adjustment for share options and share award schemes | 12,494,541 | 12,157,942 | | Weighted average number of ordinary shares for diluted EPS calculation | 455,143,297 | 482,063,908 | | **Diluted earnings per share attributable to equity holders of the company (RMB)** | **0.42** | **0.29** | [Dividends](index=32&type=section&id=Dividends) For the periods ended June 30, 2025, and 2024, no dividends were declared by entities within the Group to their owners - For the periods ended June 30, 2025, and 2024, no dividends were declared by entities within the Group to their owners[89](index=89&type=chunk) [Receivables and Payables](index=32&type=section&id=Receivables%20and%20Payables) Net receivables and payables both increased, with most receivables aged within 3 months and most payables settled within 6 months, indicating healthy short-term solvency Ageing Analysis of Receivables (as of June 30, 2025) | Ageing | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 months (inclusive) | 473,016 | 462,846 | | 3 to 6 months (inclusive) | 120,433 | 96,270 | | 6 months to 1 year (inclusive) | 74,027 | 50,804 | | Over 1 year | 13,528 | 7,269 | | Less: Loss allowance | (11,130) | (5,373) | | **Net Receivables** | **669,874** | **611,816** | Ageing Analysis of Payables (as of June 30, 2025) | Ageing | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 6 months | 233,246 | 246,252 | | 6 months to 1 year | 32,652 | 8,069 | | 1 to 2 years | 2,515 | 2,336 | | **Total** | **268,413** | **256,657** |

Group 1 - The company, DouDou Holdings (08250), announced that on August 20, 2025, its indirect wholly-owned subsidiary, Yue Sheng, acquired a total of 284,500 shares of BaiRong Cloud-W through the public market on the Stock Exchange [1] - The total consideration for the acquisition was approximately HKD 3.021 million, excluding transaction costs, which translates to an average price of about HKD 10.62 per share of BaiRong Cloud-W [1]

Group 1 - The company, DouDou Holdings (08250), announced that its indirect wholly-owned subsidiary, Yue Sheng, acquired a total of 284,500 shares of BaiRong Cloud-W through the stock exchange on the open market [1] - The total consideration for the acquisition was approximately HKD 3.021 million, excluding transaction costs, which translates to an average price of about HKD 10.62 per share of BaiRong Cloud-W [1]

格隆汇8月20日丨都都控股(08250.HK)公告，于2025年8月20日，越盛通过联交所于公开市场上合共收购 了284,500股百融云-W股份，总代价约302.1万港元(不含交易成本，即平均价格约每股百融云-W股份 10.62港元)。 ...

格隆汇8月15日丨百融云-W(06608.HK)宣布，将于2025年8月28日(星期四)举行董事会会议，以考虑(其 中包括)批准集团截至2025年6月30日止六个月的未经审核中期业绩及其刊发，以及考虑派付中期股息 (如有)。 ...