Core Viewpoint - Youzan has finally turned a profit after years of losses, reporting a net profit of approximately RMB 73 million for the first half of 2025, marking a significant turnaround in its financial performance [1][3]. Financial Performance - In the first half of 2025, Youzan's revenue was approximately RMB 710 million, representing a year-on-year growth of about 4% [3]. - The net profit for the same period was RMB 73 million, a substantial improvement compared to a net loss of RMB 42.95 million in the previous year [4]. - The total comprehensive income for the first half of 2025 was RMB 75.75 million, compared to a loss of RMB 7.07 million in the same period last year [4]. Business Strategy - Youzan has optimized its business structure, increasing the proportion of high-margin businesses, with revenue from merchant solutions growing significantly to approximately RMB 338 million, a year-on-year increase of 10.3% [5]. - The average sales per merchant reached approximately RMB 930,000, reflecting an 11% year-on-year increase, indicating improved merchant service effectiveness [6]. Market Context - The Chinese SaaS market is projected to reach RMB 49.82 billion in 2024, with a year-on-year growth of 31.6% [3]. - Youzan's stock price has significantly declined from a peak market capitalization of over RMB 70 billion to around RMB 4.7 billion, highlighting the challenges faced in the SaaS sector [1]. Competitive Landscape - Youzan faces intense competition from major players like Alibaba and Tencent, which have entered the SaaS market with substantial resources and established customer bases [15]. - The competition with similar companies like Weimob is particularly fierce, as both companies target small and medium-sized merchants [15]. Technological Innovation - The application of AI technology has been crucial for Youzan, enhancing operational efficiency and reducing research and development costs, which has contributed to its profitability [9][10]. - Youzan has expanded its sales team to approximately 750 personnel in the first half of 2025, improving its market outreach and customer acquisition capabilities [11]. Ecosystem Development - Youzan has diversified its platform partnerships beyond WeChat, integrating with platforms like Alipay and Xiaohongshu to reduce dependency on a single ecosystem [12]. - The company has also expanded its services to include offline retail solutions, creating a more integrated online and offline service model [13].

Financial and Business Summary [Summary of Financial Performance](index=3&type=section&id=摘要-财务业绩) For H1 2025, the Group's total revenue grew 4.0% to RMB 714 million, operating profit surged over 30 times to RMB 84.09 million, achieving a net profit of RMB 72.57 million, with period-end cash at RMB 940 million and no interim dividend recommended Key Financial Indicators for H1 2025 | Indicator | H1 2025 (RMB 10,000) | H1 2024 (RMB 10,000) | YoY Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | 71,359 | 68,633 | +4.0% | | **Gross Profit** | 46,678 | 46,915 | -0.5% | | **Gross Profit Margin** | 65.4% | 68.4% | -3.0 p.p. | | **Operating Profit** | 8,409 | 259 | +3,151.7% | | **Profit/(Loss) for the Period** | 7,257 | (430) | Turnaround to Profit | | **Cash and Cash Equivalents (Period-end)** | 93,982 | - | - | - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[7](index=7&type=chunk) [Business Segment Performance](index=3&type=section&id=摘要-业务分部表现) During the reporting period, merchant solutions business was the primary growth driver with a 10.3% increase in revenue, while subscription solutions revenue slightly decreased by 1.0%, with merchant solutions also achieving a 3.5% gross profit growth, contrasting with a 2.8% decline in subscription solutions gross profit Revenue and Gross Profit Performance by Business Segment | Business Segment | Revenue (RMB 100 million) | YoY Change | Gross Profit (RMB 100 million) | YoY Change | | :--- | :--- | :--- | :--- | :--- | | **Subscription Solutions** | 3.74 | -1.0% | 2.87 | -2.8% | | **Merchant Solutions** | 3.38 | +10.3% | 1.78 | +3.5% | Unaudited Condensed Consolidated Financial Statements [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=5&type=section&id=未經審核簡明綜合損益及其他全面收益表) The Group achieved a turnaround to profit in H1 2025, reporting RMB 72.57 million in net profit, primarily due to effective cost control, reduced operating expenses, and a reversal of financial asset impairment losses Key Items from Statement of Profit or Loss (RMB thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | 713,589 | 686,329 | | Gross Profit | 466,775 | 469,149 | | Selling and Distribution Expenses | (259,962) | (265,763) | | Administrative Expenses | (63,457) | (70,020) | | Research and Development Costs | (79,861) | (93,828) | | **Operating Profit** | **84,089** | **2,586** | | **Profit/(Loss) for the Period** | **72,569** | **(4,295)** | | Profit/(Loss) attributable to owners of the parent | 72,742 | (17,224) | | Basic Earnings/(Loss) Per Share (RMB) | 0.0023 | (0.0005) | [Consolidated Statement of Financial Position](index=7&type=section&id=未經審核簡明綜合財務狀況表) As of June 30, 2025, the Group's financial position remained robust with total assets of RMB 6.08 billion and net assets increasing to RMB 1.14 billion, demonstrating stable short-term solvency with a current ratio of 1.09 times Key Items from Statement of Financial Position (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Non-current Assets** | 1,408,728 | 1,412,490 | | **Total Current Assets** | 4,670,940 | 4,498,721 | | **Total Current Liabilities** | 4,283,227 | 4,144,146 | | **Total Non-current Liabilities** | 657,915 | 691,574 | | **Net Assets** | **1,138,526** | **1,075,491** | | Deposits with central banks | 3,351,375 | 3,127,657 | | Cash and cash equivalents | 939,816 | 888,821 | [Consolidated Statement of Cash Flows](index=11&type=section&id=未經審核簡明綜合現金流量報表) In H1 2025, the Group's operating cash flow significantly improved, turning from a net outflow to a net inflow of RMB 86.53 million, with period-end cash and cash equivalents increasing to RMB 940 million Summary of Cash Flow Statement (RMB thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net cash flows from/(used in) operating activities | 86,530 | (64,293) | | Net cash flows from/(used in) investing activities | 95 | (1,086) | | Net cash flows used in financing activities | (35,539) | (17,088) | | **Net increase/(decrease) in cash and cash equivalents** | **51,086** | **(82,467)** | | Cash and cash equivalents at end of period | 939,816 | 840,766 | Notes to the Financial Statements [Operating Segment Information](index=13&type=section&id=附註4.%20經營分部資料) The Group operates in third-party payment and merchant services segments, with merchant services contributing the majority of revenue in H1 2025, while third-party payment services demonstrated stronger profitability with a segment result of RMB 51.74 million Segment Results for H1 2025 (RMB thousand) | Segment | Sales to external customers | Segment result | | :--- | :--- | :--- | | Third-party payment services | 149,807 | 51,741 | | Merchant services | 560,277 | 41,278 | | Others | 3,505 | 3,560 | | **Total** | **713,589** | **96,579** | [Revenue Analysis](index=15&type=section&id=附註5.%20收益) The Group's total revenue is primarily from subscription and merchant solutions, with merchant solutions revenue growing 10.3% in H1 2025 as a key driver, while subscription solutions revenue slightly decreased, and most revenue originated from mainland China Revenue by Business Line (RMB thousand) | Business Line | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Subscription solutions | 373,643 | 377,489 | (1.0) | | Merchant solutions | 338,211 | 306,639 | 10.3 | | Others | 1,735 | 2,201 | - | | **Total** | **713,589** | **686,329** | **4.0** | - Mainland China contributed **RMB 710 million** in revenue, accounting for **99.6%** of total revenue[24](index=24&type=chunk) Management Discussion and Analysis [Business Review](index=27&type=section&id=業務回顧) In H1 2025, Youzan integrated intelligent technologies to enhance merchant marketing and operations, with GMV reaching RMB 49.8 billion, store SaaS business contributing 51% of GMV, and average sales per existing paying merchant increasing by 11% - The company continues to integrate intelligent technologies with its solutions, launching various smart products focused on intelligent marketing, omnichannel management, and operational analysis to help merchants increase revenue and efficiency[48](index=48&type=chunk) Key Operating Data for H1 2025 | Indicator | Value | | :--- | :--- | | Gross Merchandise Volume (GMV) | Approx. RMB 49.8 billion | | Store SaaS Business GMV Share | Approx. 51% | | Average Sales Per Merchant | Approx. RMB 930,000 (YoY growth of 11%) | | Number of Existing Paying Merchants | 53,651 | | Number of New Paying Merchants | 8,583 | [Financial Review](index=29&type=section&id=財務回顧) The Group's H1 2025 financial performance was robust, with total revenue up 4.0% driven by merchant solutions, and despite higher cost of sales impacting gross margin, effective expense control led to significant operating profit growth and a net profit turnaround, with adjusted non-HKFRS profit increasing 59.0% [Revenue Analysis](index=29&type=section&id=財務回顧-收益) Total revenue increased by 4.0% to RMB 714 million, driven by a 10.3% growth in merchant solutions revenue due to logistics solution penetration, while subscription solutions revenue slightly decreased by 1.0% Revenue Breakdown (RMB thousand) | Business Segment | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Subscription solutions | 373,643 | 377,489 | (1.0) | | Merchant solutions | 338,211 | 306,639 | 10.3 | | **Total** | **713,589** | **686,329** | **4.0** | - The growth in merchant solutions revenue was primarily due to increased penetration of logistics solutions, leading to a higher volume of orders utilizing Youzan's logistics solutions[59](index=59&type=chunk) [Cost of Sales and Gross Profit Analysis](index=31&type=section&id=財務回顧-銷售成本) Cost of sales increased by 13.6% to RMB 247 million, primarily due to higher logistics, transaction, and technical service expenses, resulting in a decrease in the Group's overall gross profit margin from 68.4% to 65.4% - Key drivers for the increase in cost of sales include a **69.0%** rise in logistics costs, a **9.6%** increase in transaction costs, and a **52.6%** increase in technical service expenses[62](index=62&type=chunk) Gross Profit Margin by Business Segment | Business Segment | H1 2025 Gross Profit Margin | H1 2024 Gross Profit Margin | | :--- | :--- | :--- | | Subscription solutions | 76.9% | 78.3% | | Merchant solutions | 52.7% | 56.2% | | **Total** | **65.4%** | **68.4%** | [Analysis of Expenses and Other Items](index=33&type=section&id=財務回顧-費用和其他) The Group effectively controlled expenses, with selling and distribution, administrative, and R&D costs decreasing by 2.2%, 9.4%, and 14.9% respectively, largely due to the adoption of AI-driven tools reducing R&D labor costs - Selling and distribution expenses decreased by **2.2%**, primarily due to reduced channel commission expenses[68](index=68&type=chunk) - Administrative expenses decreased by **9.4%**, mainly attributable to reduced staff costs due to a decrease in administrative and back-office personnel[68](index=68&type=chunk) - Research and development costs decreased by **14.9%**, primarily due to the widespread adoption of AI-driven tools in R&D activities, leading to lower R&D staff costs[68](index=68&type=chunk) [Non-HKFRS Measures](index=34&type=section&id=非香港財務報告準則計量) Under non-HKFRS measures, adjusted profit for the period increased 59.0% to RMB 82.36 million, and adjusted EBITDA rose 94.6% to RMB 70.20 million, primarily excluding non-cash items like share-based payments and intangible asset amortization Non-HKFRS Profit Reconciliation (RMB thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit/(Loss) for the period | 72,569 | (4,295) | | Add: Equity-settled share-based payments | 9,822 | 21,704 | | Add: Amortization of intangible assets | – | 40,467 | | Less: Related tax adjustments | (34) | (6,070) | | **Adjusted non-HKFRS profit for the period** | **82,357** | **51,806** | [Financial Resources and Liquidity](index=36&type=section&id=財務資源及流動資金) As of June 30, 2025, the Group maintained a robust financial position with approximately RMB 940 million in cash and cash equivalents, and a stable debt-to-asset ratio of 5.7%, consistent with year-end 2024 Key Liquidity Data (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | 939,816 | 888,821 | | Bank and other borrowings | 345,291 | 338,725 | - As of June 30, 2025, the Group's debt-to-asset ratio was **5.7%**, remaining relatively stable compared to **5.7%** as of December 31, 2024[74](index=74&type=chunk) Other Disclosures [Share Repurchases](index=44&type=section&id=購買、出售或贖回本公司的上市證券) For H1 2025, the company repurchased 257,868,000 shares on the Stock Exchange for approximately HKD 23.79 million, reflecting the Board's confidence in business prospects and commitment to shareholder value Share Repurchase Details for H1 2025 | Month of Repurchase | Number of Shares Repurchased | Total Consideration (HKD thousand) | | :--- | :--- | :--- | | January 2025 | 4,000,000 | 428 | | March 2025 | 59,888,000 | 6,084 | | April 2025 | 136,392,000 | 11,945 | | May 2025 | 40,588,000 | 3,721 | | June 2025 | 17,000,000 | 1,613 | | **Total** | **257,868,000** | **23,791** | [Corporate Governance](index=45&type=section&id=企業管治守則) The company largely complied with the Corporate Governance Code, with one deviation: the Chairman and CEO roles are held by Mr. Zhu Ning, an arrangement the Board deems in the best interest of the company and shareholders due to his leadership and business understanding - The company deviated from the Corporate Governance Code's provision that the roles of Chairman and Chief Executive Officer should be held by different individuals, as Mr. Zhu Ning, the Executive Director and Chief Executive Officer, also serves as the Chairman of the Board[103](index=103&type=chunk)[104](index=104&type=chunk) - The Board believes Mr. Zhu Ning is the most suitable person for both positions, and this arrangement is beneficial to the company and its shareholders and is in their overall best interests[105](index=105&type=chunk)

Group 1 - The core viewpoint of the article highlights that Youzan (08083) experienced a significant stock price increase of over 12% following the release of its interim results, indicating positive market sentiment towards the company's performance [1] - Youzan reported a revenue of 714 million yuan, representing a year-on-year increase of 3.97%, and a profit attributable to shareholders of 72.74 million yuan, a turnaround from a loss of 17.22 million yuan in the same period last year [1] - The revenue growth was primarily driven by an increase in merchant solutions revenue, although this was partially offset by a decrease in subscription solutions revenue [1] Group 2 - In the first half of 2025, the gross merchandise volume (GMV) generated by merchants using Youzan's solutions is expected to be approximately 49.8 billion yuan [1] - Huachuang Securities noted that Youzan is a leading SaaS platform for merchant services, utilizing AI tools to address operational challenges faced by merchants [1] - According to Huatai Securities, Tencent's management indicated that the impact of the newly implemented advertising tax in July is minimal, with significant growth in eCPM driven by advertising, and notable internal circulation from WeChat stores and mini-games [1]

Core Viewpoint - On August 12, seven Hong Kong-listed companies conducted share buybacks, totaling 21,003,100 shares and an aggregate amount of HKD 47,204,900 [1][2]. Group 1: Buyback Details - Hang Seng Bank repurchased 200,000 shares for HKD 23,000,200, with a highest price of HKD 115.400 and a lowest price of HKD 114.100, bringing its total buyback amount for the year to HKD 183,328,000 [1][2]. - MGM China repurchased 1,000,000 shares for HKD 16,220,500, with a highest price of HKD 16.340 and a lowest price of HKD 15.840, totaling HKD 70,662,000 in buybacks for the year [1][2]. - Yuan Zheng Technology repurchased 256,500 shares for HKD 3,324,900, with a highest price of HKD 13.040 and a lowest price of HKD 12.810, accumulating HKD 49,358,100 in buybacks for the year [1][2]. - Youzan had the highest number of shares repurchased on August 12, totaling 18,380,000 shares, with a buyback amount of HKD 2,622,800 [1][2]. - Other companies involved in buybacks include Beisen Holdings and HYPEBEAST, with respective repurchases of 229,400 shares and 93,520 shares [1][2]. Group 2: Summary of Buyback Statistics - The total buyback amount on August 12 was led by Hang Seng Bank at HKD 23,000,200, followed by MGM China at HKD 16,220,500, and Yuan Zheng Technology among others [1][2]. - The total number of shares repurchased on that day was highest for Youzan, followed by MGM China and HYPEBEAST [1][2].

Group 1 - The companies HYPEBEAST, China Youzan, Weichai Power, Hang Seng Bank, Meiheng Industrial, Beisen Holdings, Yuan Zheng Technology, and MGM China conducted share buybacks on August 12, 2025 [1] - Weichai Power had the largest buyback amount, repurchasing 3.04 million shares for a total of 46.1257 million yuan [1][2] - The cumulative buyback amounts for the year varied among the companies, with Weichai Power repurchasing a total of 22.7255 million shares, representing 0.261% of its total share capital [2] Group 2 - Hang Seng Bank repurchased 200,000 shares for 23 million yuan, with a year-to-date total of 1.6 million shares, accounting for 0.085% of its total share capital [2] - MGM China repurchased 1 million shares for 16.2205 million yuan, with a cumulative total of 4.6275 million shares for the year, representing 0.122% of its total share capital [2] - Yuan Zheng Technology repurchased 256,500 shares for 3.3249 million yuan, with a year-to-date total of 159,550 shares, accounting for 0.988% of its total share capital [2]

FF305 翌日披露報表 (股份發行人 ── 已發行股份或庫存股份變動、股份購回及/或在場内出售庫存股份) 表格類別： 股票 狀態： 新提交 公司名稱： 有贊科技有限公司 呈交日期： 2025年8月12日 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公司GEM證券 上市規則》(「《GEM上市規則》」)第17.27A條作出披露，必須填妥第一章節 。 | 第一章節 | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 | 是 | | | 證券代號 (如上市) | 08083 | 說明 | | | | | | | A. 已發行股份或庫存股份變動 | | | | | | | | | | | 已發行股份（不包括庫存股份）變動 | | | 庫存股份變動 | | | | 事件 | | 已發行股份（不包括庫存股份）數 目 | | 佔有關事件 ...

Summary of the Conference Call for Youzan Company Overview - **Company**: Youzan - **Industry**: SaaS (Software as a Service) for merchants, focusing on e-commerce and retail solutions Key Financial Metrics - **Total Revenue**: 710 million CNY in H1 2025, a 4% year-on-year increase [2][4] - **Net Profit**: 72.57 million CNY, achieving a net profit margin of 10% for the first time [2][4] - **Operating Cash Flow**: 86.53 million CNY, indicating healthy business operations [2][4] - **Adjusted EBITDA**: 36 million CNY in 2023, with an EBITDA margin of 8.4% expected in 2024 [2][3] Revenue Breakdown - **Subscription Solutions Revenue**: 370 million CNY, a slight decline year-on-year, but ARPU increased by 10% to 6,964 CNY [2][9] - **Merchant Solutions Revenue**: 63.04 million CNY, a 22% year-on-year increase, driven by cross-border transaction solutions [2][11] Operational Efficiency - **Employee Count**: 1,509 as of June 30, 2025, with a 5% year-on-year decrease but a 1% increase from the end of 2024 [7] - **Sales Personnel**: 50% of total employees, with a 9% increase in sales staff [7][8] - **Cost Control**: Significant reductions in R&D and administrative expenses due to AI integration and efficiency improvements [13] Strategic Initiatives - **Sales Team Expansion**: Plans to continue expanding the sales team to support future growth [8] - **AI Integration**: AI capabilities are being integrated into higher-tier subscription products to enhance merchant efficiency [12][25] - **Market Expansion**: Gradual expansion into the restaurant sector, significantly increasing the target market size [18] Future Guidance - **2025 Revenue Guidance**: Expecting slight revenue growth and maintaining a 10% profit margin [3][22] - **2026 Revenue Growth**: Projected at 10%, with key drivers including sales recovery and expansion into high-margin sectors [3][22] Challenges and Considerations - **AI Commercialization**: The pace of AI commercialization in China is slow, with many merchants hesitant to invest without clear ROI [26] - **Market Dynamics**: The company is focusing on integrating AI into existing products rather than standalone offerings to avoid complex sales processes [17][27] Shareholder Returns - **Share Buybacks**: Approximately 30 million HKD in buybacks since last year, with plans to continue based on market conditions [24] - **Dividend Considerations**: Healthy financial status with over 500 million CNY in net cash, allowing for potential dividends [24] Conclusion - **Overall Performance**: Youzan has shown resilience with a return to profitability and a focus on operational efficiency and strategic growth initiatives. The integration of AI and expansion into new markets are key components of its future strategy.

2025 Interim Results Presentation Any inquiries, please contact investor relations team. investor@youzan.com Disclaimer •The presentation is prepared by Youzan(the "Company") and is solely for the purpose of corporate communication and general reference only. All such information should not be used or relied on without professional advice. The presentation is a brief summary in nature and does not purport to be a complete description of the Company, its business, its current or historical operating results ...

Core Insights - Youzan (08083) reported a revenue of approximately RMB 710 million for the first half of 2025, representing a year-on-year growth of about 4% [1] - The company achieved a net profit of approximately RMB 73 million, marking a turnaround from losses, with a net profit margin rising to about 10% [1] - Operating cash inflow for the first half of 2025 was approximately RMB 87 million [1] Business Performance - The Gross Merchandise Volume (GMV) generated by merchants using Youzan's solutions was approximately RMB 49.8 billion in the first half of 2025 [1] - The average sales per merchant in the first half of 2025 was about RMB 930,000, reflecting a year-on-year increase of approximately 11% [1] - The GMV from store SaaS showed year-on-year growth, and the number of paying merchants for store SaaS increased compared to the end of 2024 [1] Future Goals - The company's operational goal for 2025 is to achieve business growth while steadily increasing profit margins [1] - Youzan aims to enhance the silicon content across various business segments and build an intelligent organization [1]

[Performance Highlights](index=3&type=section&id=Performance%20Highlights) [Key Financial Indicators](index=3&type=section&id=Key%20Financial%20Indicators) For the six months ended June 30, 2025, Youzan Technology's total revenue increased by 4.0% to RMB 714 million, swinging to a profit of RMB 72.57 million for the period, with operating profit surging over 30 times, while gross margin decreased from 68.4% to 65.4% Overview of Key Financial Data for H1 2025 | Indicator | H1 2025 (RMB) | H1 2024 (RMB) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Revenue** | 713,589,000 | 686,329,000 | +4.0% | | **Gross Profit** | 466,775,000 | 469,149,000 | -0.5% | | **Gross Margin** | 65.4% | 68.4% | -3.0 p.p. | | **Operating Profit** | 84,089,000 | 2,586,000 | +3151.7% | | **Profit/(Loss) for the Period** | 72,569,000 | (4,295,000) | Swung to Profit | | **Cash and Cash Equivalents (End of Period)** | 939,816,000 | - | - | - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[7](index=7&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) During the reporting period, the company's total revenue was RMB 714 million, a 4.0% year-on-year increase, with operating profit significantly rising from RMB 2.59 million to RMB 84.09 million due to effective control of expenses, resulting in a net profit of RMB 72.57 million and basic earnings per share of RMB 0.0023, a turnaround from last year's loss Consolidated Statement of Profit or Loss Summary | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 713,589 | 686,329 | | Gross Profit | 466,775 | 469,149 | | Operating Profit | 84,089 | 2,586 | | Profit/(Loss) Before Tax | 74,353 | (6,764) | | Profit/(Loss) for the Period | 72,569 | (4,295) | | Profit/(Loss) Attributable to Owners of the Parent | 72,742 | (17,224) | | Basic Earnings/(Loss) Per Share (RMB) | 0.0023 | (0.0005) | [Consolidated Statement of Financial Position](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets were RMB 6.08 billion, total liabilities RMB 4.94 billion, and net assets RMB 1.14 billion, an increase from RMB 1.08 billion at the end of 2024, with net current assets rising to RMB 388 million and a current ratio of 1.09, indicating stable short-term solvency Consolidated Statement of Financial Position Summary | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Total Non-current Assets** | 1,408,728 | 1,412,490 | | **Total Current Assets** | 4,670,940 | 4,498,721 | | **Total Current Liabilities** | 4,283,227 | 4,144,146 | | **Net Current Assets** | 387,713 | 354,575 | | **Total Non-current Liabilities** | 657,915 | 691,574 | | **Net Assets** | 1,138,526 | 1,075,491 | [Consolidated Statement of Changes in Equity](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2025, total equity attributable to owners of the parent increased to RMB 1.14 billion, primarily driven by a profit of RMB 72.74 million for the period, alongside share repurchases of RMB 22.54 million and adjustments to reserves due to share award schemes - During the period, equity attributable to owners of the parent increased from **RMB 1.077 billion** at the beginning of the year to **RMB 1.140 billion** at the end of the period[13](index=13&type=chunk) - The primary driver for the increase in equity was the **RMB 72.74 million** profit recorded for the period[13](index=13&type=chunk) - The company conducted share repurchases during the period, leading to an increase in treasury shares of **RMB 22.54 million**[13](index=13&type=chunk) [Consolidated Statement of Cash Flows](index=11&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) During the reporting period, net cash flow from operating activities turned positive, reaching a net inflow of RMB 86.53 million, indicating improved core business cash generation, with cash and cash equivalents increasing by RMB 51.09 million to RMB 940 million at period-end, reflecting a robust overall financial position Cash Flow Statement Summary | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Cash Flows from/(used in) Operating Activities | 86,530 | (64,293) | | Net Cash Flows from/(used in) Investing Activities | 95 | (1,086) | | Net Cash Flows used in Financing Activities | (35,539) | (17,088) | | **Net Increase/(Decrease) in Cash and Cash Equivalents** | **51,086** | **(82,467)** | | **Cash and Cash Equivalents at End of Period** | **939,816** | **840,766** | [Notes to the Financial Statements](index=12&type=section&id=Notes%20to%20the%20Financial%20Statements) [Operating Segment Information](index=13&type=section&id=Operating%20Segment%20Information) The company operates in three segments: third-party payment services, merchant services, and others, with merchant services being the primary revenue source at RMB 560 million and turning profitable with RMB 41.28 million, while third-party payment services generated RMB 150 million in revenue and RMB 51.74 million in segment profit Segment Performance for H1 2025 | Segment | Sales to External Customers (RMB thousands) | Segment Profit (RMB thousands) | | :--- | :--- | :--- | | Third-Party Payment Services | 149,807 | 51,741 | | Merchant Services | 560,277 | 41,278 | | Other | 3,505 | 3,560 | - Compared to the same period last year, the merchant services segment's performance significantly improved, swinging from a loss of **RMB 41.83 million** to a profit of **RMB 41.28 million**[22](index=22&type=chunk) [Revenue Analysis](index=15&type=section&id=Revenue%20Analysis) The company's total revenue is primarily derived from subscription and merchant solutions, with merchant solutions revenue growing by 10.3% to RMB 338 million, driving overall growth, while subscription solutions revenue slightly decreased by 1.0% to RMB 374 million, with the vast majority of revenue originating from mainland China Revenue by Business Line | Business Line | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Subscription Solutions | 373,643 | 377,489 | -1.0% | | Merchant Solutions | 338,211 | 306,639 | +10.3% | | Other | 1,735 | 2,201 | -21.2% | | **Total** | **713,589** | **686,329** | **+4.0%** | - Over **99%** of the company's revenue is derived from the mainland China market[24](index=24&type=chunk) [Management Discussion and Analysis](index=27&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Outlook](index=27&type=section&id=Business%20Review%20and%20Outlook) In H1 2025, Youzan continued to integrate intelligent technology into its SaaS solutions, helping merchants enhance public domain marketing, private domain operations, and store management efficiency, with GMV reaching approximately RMB 49.8 billion, of which 51% came from store SaaS business, and existing paying merchants totaling 53,651 with an 11% increase in average sales per merchant - The company's core strategy is to provide merchants with social network-based omnichannel SaaS systems and new retail solutions, continuously integrating intelligent technology to help merchants increase revenue and efficiency[47](index=47&type=chunk)[48](index=48&type=chunk) Key Operating Data for H1 2025 | Indicator | Value | | :--- | :--- | | Gross Merchandise Volume (GMV) | Approximately RMB 49.8 billion | | Proportion of GMV from Store SaaS Business | Approximately 51% | | Average Sales Per Merchant | Approximately RMB 0.93 million (Year-on-year increase of **11%**) | | Number of Existing Paying Merchants | 53,651 | | Number of New Paying Merchants | 8,583 | - The company's future business development strategy is to: 1. Achieve business growth while maintaining a steady increase in profit margins; 2. Enhance the "silicon content" (intelligence) across all business segments to build an intelligent organization[53](index=53&type=chunk) [Financial Review](index=29&type=section&id=Financial%20Review) Total revenue in H1 2025 grew 4.0% to RMB 714 million, primarily driven by a 10.3% increase in merchant solutions revenue due to higher logistics solution penetration, while subscription solutions revenue slightly declined by 1.0%, and cost of sales rose 13.6% due to increased logistics and transaction costs, leading to a gross margin decrease from 68.4% to 65.4%, with significant operating profit improvement attributed to effective control over selling, administrative, and R&D expenses Revenue Composition and Changes | Business Line | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Subscription Solutions | 373,643 | 377,489 | (1.0) | | Merchant Solutions | 338,211 | 306,639 | 10.3 | | **Total** | **713,589** | **686,329** | **4.0** | - Cost of sales increased by **13.6%** year-on-year, primarily due to higher logistics costs (**+69.0%**), transaction costs (**+9.6%**), and technical service expenses (**+52.6%**) [62](index=62&type=chunk) Gross Profit and Gross Margin Analysis | Business Line | H1 2025 Gross Profit (RMB thousands) | H1 2025 Gross Margin (%) | H1 2024 Gross Margin (%) | | :--- | :--- | :--- | :--- | | Subscription Solutions | 287,318 | 76.9% | 78.3% | | Merchant Solutions | 178,323 | 52.7% | 56.2% | | **Total** | **466,775** | **65.4%** | **68.4%** | - All operating expenses decreased year-on-year: selling and distribution expenses by **2.2%**, administrative expenses by **9.4%**, and research and development costs by **14.9%**, primarily due to personnel optimization and the widespread application of AI tools[68](index=68&type=chunk) [Non-HKFRS Measures](index=34&type=section&id=Non-HKFRS%20Measures) To better reflect core operating performance, the company disclosed non-HKFRS financial metrics, with adjusted EBITDA reaching RMB 70.20 million, a 94.6% year-on-year increase, and adjusted non-HKFRS profit for the period at RMB 82.36 million, up 59.0%, after excluding non-cash or non-operating items like share-based payments and depreciation and amortization Reconciliation of Non-HKFRS Measures | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Operating Profit | 84,089 | 2,586 | | **Adjusted EBITDA** | **70,201** | **36,069** | | Profit/(Loss) for the Period | 72,569 | (4,295) | | **Adjusted Non-HKFRS Profit for the Period** | **82,357** | **51,806** | [Capital and Liquidity](index=36&type=section&id=Capital%20and%20Liquidity) As of June 30, 2025, the company maintained a robust financial position with approximately RMB 940 million in cash and cash equivalents, a stable debt-to-asset ratio of 5.7%, and manageable foreign exchange risk as most transactions and balances are denominated in RMB, with a total of 1,509 employees at period-end - As of June 30, 2025, the Group's cash and cash equivalents amounted to approximately **RMB 940 million**[76](index=76&type=chunk) - The debt-to-asset ratio (total debt/total assets) was **5.7%**, remaining stable compared to the end of 2024[74](index=74&type=chunk) - As of June 30, 2025, the Group employed approximately **1,509** staff[78](index=78&type=chunk) [Other Statutory Disclosures](index=38&type=section&id=Other%20Statutory%20Disclosures) [Share Option and Share Award Schemes](index=40&type=section&id=Share%20Option%20and%20Share%20Award%20Schemes) The company incentivizes employees through share option and share award schemes, with 13.6 million unexercised share options under the 2019 scheme as of June 30, 2025, and the share award scheme ongoing, with certain awards vested and forfeited during the period, and scheme limits clarified - As of June 30, 2025, there were **13,600,000** unexercised share options under the terminated "2019 Share Option Scheme," with an exercise price of **HKD 0.385**[89](index=89&type=chunk) - During the period, **12,353,942** awarded shares vested and **6,012,564** awarded shares were forfeited or lapsed under the Share Award Scheme[95](index=95&type=chunk) [Share Repurchases](index=44&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, the company actively repurchased 257.87 million shares on the Stock Exchange for a total consideration of approximately HKD 23.79 million, demonstrating management's confidence in the company's prospects, and also transferred approximately 1.576 billion treasury shares to the trustee under the share award scheme Share Repurchase Details for H1 2025 | Repurchase Month | Number of Shares Repurchased | Price Paid Per Share Range (HKD) | Total Consideration (HKD thousands) | | :--- | :--- | :--- | :--- | | January 2025 | 4,000,000 | 0.104 - 0.108 | 428 | | March 2025 | 59,888,000 | 0.097 - 0.104 | 6,084 | | April 2025 | 136,392,000 | 0.079 - 0.101 | 11,945 | | May 2025 | 40,588,000 | 0.086 - 0.095 | 3,721 | | June 2025 | 17,000,000 | 0.090 - 0.097 | 1,613 | | **Total** | **257,868,000** | - | **23,791** | [Corporate Governance](index=45&type=section&id=Corporate%20Governance) The company is committed to maintaining high corporate governance standards, largely complying with the Corporate Governance Code during the reporting period, though the roles of Chairman and CEO are held by the same individual, Mr. Zhu Ning, a deviation from Code Provision C.2.1, which the Board believes is in the best interest of the company and its shareholders, and the Audit Committee has reviewed the period's results - The company has complied with the Corporate Governance Code, but there is a deviation from Code Provision C.2.1, where the roles of Chairman and Chief Executive Officer are held by the same individual, Mr. Zhu Ning[103](index=103&type=chunk)[104](index=104&type=chunk) - The Board believes that Mr. Zhu Ning serving concurrently as Chairman and Chief Executive Officer facilitates the continuous execution of business plans and is in the overall best interest of the company and its shareholders[105](index=105&type=chunk) - The Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited interim results for the period[106](index=106&type=chunk)