Core Viewpoint - In the first half of 2025, Zhangyue Technology Co., Ltd. reported a strategic transformation from a digital reading platform to a multi-modal content production and operation platform in the AI era, with significant growth in short drama and derivative business revenues, which have become the company's primary business segment [2][3]. Financial Performance - The company achieved a revenue of 1.526 billion yuan in the first half of 2025, representing a year-on-year increase of 14.58% [2]. - Revenue from short dramas and derivative businesses reached 838 million yuan, marking a substantial growth of 149.09% compared to the same period last year [2][3]. - Sales expenses amounted to 1.088 billion yuan, an increase of 25.86% year-on-year [2]. - The net profit attributable to shareholders was -160 million yuan [2]. Business Development - The company is focusing on a dual-driven strategy of "domestic expansion and overseas breakthroughs," which has led to increased short-term investments and impacted profitability [2][3]. - Despite a decline in revenue from the digital reading platform, the company continues to maintain rigid content costs, further negatively affecting profitability [2]. Content Ecosystem and Quality - Zhangyue Technology is enhancing its content ecosystem by improving content production capabilities and enriching quality content resources, thereby strengthening its content barriers [3]. - The company is actively building an overseas content system that aligns with local cultural backgrounds, improving content quality and user experience across different regions [3]. AI Integration - The company is advancing the application of AI large models in digital reading and short dramas, leveraging its advantages in content copyright resources, creator ecosystems, and a vast user base [4]. - It is exploring the integration of "AI + IP" in the short drama sector [4].

Group 1 - The company,掌阅科技, announced that its fourth board meeting of the ninth session will be held on August 27, 2025, combining in-person and remote participation [1] - The meeting will review the special report on the storage and actual use of funds raised in the first half of 2025 [1]

Core Viewpoint - The company has successfully transformed its business model, with short drama becoming its largest revenue source, reflecting a strategic shift towards a multi-modal content production and operation platform in the AI era [1][2]. Group 1: Financial Performance - In the first half of 2025, the company achieved revenue of 1.526 billion yuan, representing a year-on-year growth of 14.58% [1]. - Revenue from the short drama business reached 838 million yuan, showing a significant year-on-year increase of 149.09% [1][2]. Group 2: Business Transformation - The company has upgraded its strategy from being a "digital reading platform" to a "multi-modal content production and operation platform" in the AI era [1]. - The short drama and derivative businesses have become the primary focus, with a dual strategy of "domestic expansion and overseas breakthroughs" driving growth [2]. Group 3: Content Development - The company has enhanced its content ecosystem by introducing thousands of high-quality digital books and audio content, strengthening its content barrier [2]. - In the domestic short drama market, the company has established itself in the leading tier by leveraging AI technology for an intelligent production and operation system [2]. Group 4: International Expansion - The company launched the overseas short drama platform iDrama, which has thousands of multi-language short dramas and is experiencing rapid growth in markets like the US, South Korea, and Indonesia [3]. Group 5: AI Application - The company is actively advancing the application of AI models in digital reading and short dramas, integrating its advantages in content copyright, creator ecosystem, and user resources [4]. - New AI-assisted features have been introduced in the reading app, including an "AI Book Radio" to enhance user interaction [4]. - In derivative businesses, the company is utilizing AI in script generation, visual presentation, and post-production to improve efficiency and user experience [4].

Core Insights - The company reported a revenue of 1,526.07 million yuan for the first half of 2025, representing a year-on-year growth of 14.58% [1] - Revenue from derivative businesses, including short dramas, reached 837.85 million yuan, showing a significant increase of 149.09% compared to the same period last year [1] - Sales expenses amounted to 1,087.90 million yuan, which is a 25.86% increase year-on-year [1] - The net profit attributable to shareholders was -160.14 million yuan, reflecting a decline of 235.68% compared to the previous year [1]

一、监事会会议召开情况 掌阅科技股份有限公司（以下简称"公司"）第四届监事会第八次会议通知及 会议资料于 2025 年 8 月 19 日以电子邮件方式送达全体监事，本次会议于 2025 年 8 月 27 日在公司会议室以现场方式召开。本次监事会会议应出席监事 3 人， 实际出席监事 3 人。本次监事会会议由监事会主席黄国伟先生主持。本次会议的 召开和表决程序符合《公司法》和《公司章程》的有关规定。 二、监事会会议审议情况 （一）审议通过了《2025 年半年度报告全文及 2025 年半年度报告摘要》 监事会认为，公司 2025 年半年度报告全文和 2025 年半年度报告摘要的编制 和审议程序符合法律、法规、公司章程和公司内部管理制度的各项规定；报告全 文及摘要的内容和格式符合中国证监会和上海证券交易所的各项规定，内容真实、 准确、完整地反映了本报告期内公司的实际状况，不存在任何虚假记载、误导性 陈述或者重大遗漏；没有发现参与报告编制和审议的人员有违反保密规定的行为。 证券代码：603533 证券简称：掌阅科技 公告编号：2025-036 掌阅科技股份有限公司 第四届监事会第八次会议决议公告 本公司监事会及全体监 ...

证券代码：603533 证券简称：掌阅科技 公告编号：2025-034 掌阅科技股份有限公司 第四届董事会第九次会议决议公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 一、董事会会议召开情况 掌阅科技股份有限公司（以下简称"公司"）第四届董事会第九次会议通知及 会议资料于 2025 年 8 月 19 日以电子邮件方式送达全体董事，本次会议于 2025 年 8 月 27 日在公司会议室以现场和通讯相结合方式召开。本次董事会会议应出 席董事 6 人，实际出席董事 6 人，会议由董事长成湘均先生主持，公司部分高级 管理人员列席了本次会议。本次会议的召开和表决程序符合《公司法》及《公司 章程》的规定，本次会议的召开合法有效。 （二）审议通过了《2025 年半年度募集资金存放与实际使用情况的专项报 告》 表决结果：通过。 表决情况：同意 6 票，反对 0 票，弃权 0 票。 本议案提交董事会审议前，已经董事会审计委员会审议通过。 二、董事会会议审议情况 （一）审议通过了《2025 年半年度报告全文及 2025 年半年度报告摘要》 ...

Core Viewpoint - The company reported a revenue of 1.526 billion yuan for the first half of the year, marking a year-on-year growth of 14.58%, but incurred a net loss of 160 million yuan [1] Financial Performance - Revenue for the first half of the year reached 1.526 billion yuan, reflecting a year-on-year increase of 14.58% [1] - The net profit attributable to shareholders was a loss of 160 million yuan [1] Business Segments - The short drama business generated revenue of 838 million yuan, showing a significant year-on-year growth of 149.09%, becoming the company's largest business segment [1] - The company is pursuing a dual-driven strategy of "domestic expansion and overseas breakthroughs," which has led to increased short-term investments and impacted profitability [1]

[Important Notes](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) [Statement on the Authenticity of the Report](index=2&type=section&id=%E4%B8%80%E3%80%81%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E4%BC%9A%E3%80%81%E7%9B%91%E4%BA%8B%E4%BC%9A%E5%8F%8A%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E4%BF%9D%E8%AF%81%E5%8D%8A%E5%B9%B4%E5%BA%A6%E6%8A%A5%E5%91%8A%E5%86%85%E5%AE%B9%E7%9A%84%E7%9C%9F%E5%AE%9E%E6%80%A7%E3%80%81%E5%87%86%E7%A1%AE%E6%80%A7%E3%80%81%E5%AE%8C%E6%95%B4%E6%80%A7%EF%BC%8C%E4%B8%8D%E5%AD%98%E5%9C%A8%E8%99%9A%E5%81%87%E8%AE%B0%E8%BD%BD%E3%80%81%E8%AF%AF%E5%AF%BC%E6%80%A7%E9%99%88%E8%BF%B0%E6%88%96%E9%87%8D%E5%A4%A7%E9%81%97%E6%BC%8F%EF%BC%8C%E5%B9%B6%E6%89%BF%E6%8B%85%E4%B8%AA%E5%88%AB%E5%92%8C%E8%BF%9E%E5%B8%A6%E7%9A%84%E6%B3%95%E5%BE%8B%E8%B4%A3%E4%BB%BB%E3%80%82) The Board of Directors, Board of Supervisors, and senior management declare the semi-annual report is true, accurate, and complete, and bear legal responsibility; the report is unaudited - The company's directors, supervisors, and senior management guarantee the authenticity, accuracy, and completeness of the semi-annual report[3](index=3&type=chunk) - This semi-annual report is **unaudited**[5](index=5&type=chunk) - The company will **not distribute profits or convert capital reserves into share capital** for the first half of 2025[6](index=6&type=chunk) [Risk Disclosure on Forward-Looking Statements](index=2&type=section&id=%E5%85%AD%E3%80%81%E5%89%8D%E7%9E%BB%E6%80%A7%E9%99%88%E8%BF%B0%E7%9A%84%E9%A3%8E%E9%99%A9%E5%A3%B0%E6%98%8E) The company advises investors that forward-looking statements regarding future plans and strategies do not constitute substantive commitments and involve investment risks - Forward-looking statements in this report, such as future plans and development strategies, do not constitute substantive commitments to investors, who are advised to be aware of investment risks[7](index=7&type=chunk) [Section 1 Definitions](index=4&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8A%E4%B9%89) [Definitions of Common Terms](index=4&type=section&id=%E5%B8%B8%E7%94%A8%E8%AF%8D%E8%AF%AD%E9%87%8A%E4%B9%89) This section provides definitions for common terms used in the report, including CSRC, iReader Technology, digital reading, digital content, IP, AIGC, and the reporting period - "Digital reading" is defined as the digitization of reading, encompassing both reading objects and methods, featuring large storage, convenient retrieval, and low cost[13](index=13&type=chunk) - "AIGC" is defined as content generated using artificial intelligence technology[13](index=13&type=chunk) - The reporting period refers to **January 1, 2025, to June 30, 2025**[13](index=13&type=chunk) [Section 2 Company Profile and Key Financial Indicators](index=4&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) [Company Information](index=4&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF) This section outlines the company's Chinese name, abbreviation, English name and its abbreviation, and legal representative information - The company's Chinese name is iReader Technology Co, Ltd, abbreviated as iReader Technology[15](index=15&type=chunk) - The company's legal representative is Cheng Xiangjun[15](index=15&type=chunk) [Contact Information](index=4&type=section&id=%E4%BA%8C%E3%80%81%E8%81%94%E7%B3%BB%E4%BA%BA%E5%92%8C%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) This section provides detailed contact information for the company's representatives, including name, address, telephone, fax, and email - The company's contact address is 2029E, 2nd Floor, Sihui Building, Sihui East, Chaoyang District, Beijing, China[17](index=17&type=chunk) - The investor relations email address is ir@zhangyue.com[17](index=17&type=chunk) [Changes in Basic Information](index=5&type=section&id=%E4%B8%89%E3%80%81%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5%E5%8F%98%E6%9B%B4%E7%AE%80%E4%BB%8B) This section describes the change in the company's registered address on May 26, 2023, and provides the office address and website - The company's registered address was changed on **May 26, 2023**[18](index=18&type=chunk) - The company's website is http://www.zhangyue.com[18](index=18&type=chunk) [Information Disclosure and Report Availability](index=5&type=section&id=%E5%9B%9B%E3%80%81%E4%BF%A1%E6%81%AF%E6%8A%AB%E9%9C%B2%E5%8F%8A%E5%A4%87%E7%BD%AE%E5%9C%B0%E7%82%B9%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5%E7%AE%80%E4%BB%8B) This section specifies the designated newspapers for information disclosure, the website for publishing the semi-annual report, and the location where the report is available - The company's designated newspapers for information disclosure are China Securities Journal and Shanghai Securities News[19](index=19&type=chunk) - The website for publishing the semi-annual report is www.sse.com.cn[19](index=19&type=chunk) [Company Stock Profile](index=5&type=section&id=%E4%BA%94%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E7%A5%A8%E7%AE%80%E5%86%B5) This section provides information on the company's stock type, listing exchange, stock ticker, and stock code - The company's stock is A-share, listed on the Shanghai Stock Exchange, with the ticker "iReader Technology" and stock code **603533**[20](index=20&type=chunk) [Key Accounting Data and Financial Indicators](index=6&type=section&id=%E4%B8%83%E3%80%81%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) In H1 2025, operating revenue grew by 14.58% year-over-year, but total profit and net profit attributable to shareholders declined significantly due to rising costs of derivative businesses, increased sales expenses, and a drop in digital reading platform revenue Key Accounting Data for H1 2025 | Key Accounting Data | Current Period (Jan-Jun) | Same Period Last Year | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,526,069,549.77 | 1,331,857,008.65 | 14.58 | | Total Profit | -148,638,110.67 | -45,621,760.11 | -225.81 | | Net Profit Attributable to Shareholders | -160,141,782.55 | -47,707,191.99 | -235.68 | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | -170,936,273.89 | -56,028,909.11 | -205.09 | | Net Cash Flow from Operating Activities | -227,179,863.43 | -144,069,824.32 | -57.69 | | Net Assets Attributable to Shareholders (End of Period) | 2,368,122,807.38 | 2,584,081,781.44 | -8.36 | | Total Assets (End of Period) | 3,098,420,389.62 | 3,219,655,128.17 | -3.77 | Key Financial Indicators for H1 2025 | Key Financial Indicators | Current Period (Jan-Jun) | Same Period Last Year | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/Share) | -0.36 | -0.11 | -227.27 | | Diluted Earnings Per Share (RMB/Share) | -0.36 | -0.11 | -227.27 | | Basic EPS (Excluding Non-recurring Items) (RMB/Share) | -0.39 | -0.13 | -200.00 | | Weighted Average Return on Net Assets (%) | -6.40 | -1.91 | Decreased by 4.49 percentage points | | Weighted Average ROE (Excluding Non-recurring Items) (%) | -6.83 | -2.25 | Decreased by 4.58 percentage points | - The decrease in net profit attributable to shareholders was mainly due to the company's vigorous development of derivative businesses, leading to **increased cost of sales, selling expenses, and administrative expenses**[23](index=23&type=chunk) [Non-recurring Profit and Loss](index=6&type=section&id=%E4%B9%9D%E3%80%81%E9%B3%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) This section lists the non-recurring profit and loss items and their amounts for the reporting period, totaling RMB 10,794,491.34 Non-recurring Profit and Loss Items and Amounts for H1 2025 | Item | Amount (RMB) | | :--- | :--- | | Gain/Loss on Disposal of Non-current Assets | 67,499.43 | | Government Grants Recognized in Current Profit or Loss | 4,508,891.60 | | Fair Value Changes in Financial Assets and Liabilities Held by Non-financial Enterprises | 6,757,890.75 | | Other Non-operating Income and Expenses | -436,136.28 | | Less: Income Tax Impact | -8,535.93 | | Minority Interest Impact (After Tax) | 112,190.09 | | **Total** | **10,794,491.34** | [Section 3 Management Discussion and Analysis](index=7&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) [Industry and Core Business Overview](index=7&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E6%89%80%E5%B1%9E%E8%A1%8C%E4%B8%9A%E5%8F%8A%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) The company's core businesses include internet digital reading platform services, derivative businesses (short dramas), and copyright products; the digital reading industry continues to grow, with advertising revenue surpassing subscription revenue for the first time, while the short drama market and AIGC technology applications are expanding rapidly [Company's Core Business](index=7&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E5%85%AC%E5%8F%B8%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1) The company's core businesses include internet digital reading platform services (such as "iReader" and "Dejian"), derivative businesses involving the production and operation of short dramas and other video content based on high-quality IP, and a copyright products business focused on original online literature copyright operations - The company's core businesses are **internet digital reading platform services, derivative businesses, and copyright products**[28](index=28&type=chunk) - The digital reading platform generates revenue through user payments or traffic monetization[28](index=28&type=chunk) - The derivative business focuses on the production, creation, and operation of short dramas and other video content based on high-quality IP resources[28](index=28&type=chunk) [Industry Development](index=7&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E8%A1%8C%E4%B8%9A%E6%83%85%E5%86%B5) The digital reading market reached RMB 66.14 billion, up 16.65% YoY, with advertising and other income surpassing subscription revenue for the first time; the online literature market grew to RMB 49.55 billion, up 29.37% YoY; the micro-short drama user base reached 696 million, with a market size of RMB 50.5 billion, expected to hit RMB 63.43 billion in 2025; AIGC technology is increasingly applied in online literature creation and micro-short drama production, enhancing efficiency but also bringing risks such as copyright issues China's Digital Reading Market Revenue Scale in 2024 | Metric | Amount (RMB 100 million) | YoY Growth (%) | | :--- | :--- | :--- | | Overall Revenue Scale | 661.41 | 16.65 | | Advertising and Other Income | 307.94 | - | | Subscription Income | 278.67 | - | | Copyright Income | 74.80 | - | - In 2024, China's digital reading user base reached **670 million**, a year-over-year increase of **17.52%**[30](index=30&type=chunk) - In 2024, the revenue scale of China's online literature market was **RMB 49.55 billion**, a year-over-year increase of **29.37%**, with advertising revenue maintaining strong growth[31](index=31&type=chunk) - As of June 2025, the national user base for micro-short dramas reached **696 million**, with the market size reaching **RMB 50.5 billion** in 2024 and projected to reach **RMB 63.43 billion** in 2025[32](index=32&type=chunk) - AIGC continues to enhance creative efficiency in the online literature industry while introducing issues such as data security, information ethics, privacy, and copyright[33](index=33&type=chunk)[34](index=34&type=chunk) [Analysis of Operating Performance](index=9&type=section&id=%E4%BA%8C%E3%80%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5%E7%9A%84%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) In H1 2025, the company upgraded its strategy to a "multimodal content production and operation platform in the AI era," with derivative business revenue surging 149.09% to become the largest segment, driving a 14.58% increase in total revenue; however, increased investment in domestic and overseas expansion and declining digital reading platform revenue led to a 235.68% drop in net profit - The company upgraded its strategy to a "**multimodal content production and operation platform in the AI era**"[35](index=35&type=chunk) Operating and Derivative Business Revenue in H1 2025 | Metric | Amount (RMB 10,000) | YoY Growth (%) | | :--- | :--- | :--- | | Operating Revenue | 152,606.95 | 14.58 | | Short Drama and Other Derivative Business Revenue | 83,784.60 | 149.09 | - Net profit attributable to shareholders was **-RMB 160.14 million**, a decrease of **235.68%** from the same period last year[35](index=35&type=chunk) - The company continued to vigorously develop short drama and other derivative businesses, building a dual-driver model of "domestic expansion, overseas breakthrough," but short-term investment increases dragged down profitability[35](index=35&type=chunk) - The digital reading platform business experienced a decline in revenue, but short-term content costs remained rigid, further negatively impacting profitability[35](index=35&type=chunk) - Revenue from short drama and other derivative businesses **grew significantly by 149.09%**, becoming the company's largest business segment[37](index=37&type=chunk) - The company is actively promoting the application of AI large models in digital reading and short dramas, launching features like "AI Storytelling Radio" and empowering script generation, visual presentation, and post-production[39](index=39&type=chunk) [Analysis of Core Competencies](index=10&type=section&id=%E4%B8%89%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competencies lie in its large and stable user base, rich and high-quality content resources (including digital reading and short dramas), strong AI technology innovation capabilities, and deep operational development capabilities based on massive user and content data - **Large and stable user base**: The company has accumulated a large user scale in the digital reading and derivative business sectors, with stable user consumption habits[40](index=40&type=chunk) - **Rich and high-quality content resources**: Covering various types such as books, audiobooks, magazines, comics, self-published works, and videos, continuously enriched through the "iReader Literature" incubation ecosystem and short drama theme development[41](index=41&type=chunk)[42](index=42&type=chunk) - **Strong technological innovation capabilities**: With AI large models as the core engine, deepening technological applications in scenarios like short drama content creation, ad placement, and AI short drama production to improve efficiency and user experience[43](index=43&type=chunk) - **Deep operational development capabilities based on massive user and rich content**: Efficiently and accurately reaching users through big data and algorithms, achieving a combination of commercial value-add and user experience[44](index=44&type=chunk) [Key Operating Activities](index=11&type=section&id=%E5%9B%9B%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E4%B8%BB%E8%A6%81%E7%BB%8F%E8%90%A5%E6%83%85%E5%86%B5) During the reporting period, operating revenue increased by 14.58% YoY, driven by the rapid growth of derivative businesses, but cost of sales, selling expenses, and administrative expenses also rose accordingly; the asset and liability structure was adjusted, with significant increases in receivables and trading financial assets, while intangible assets decreased due to amortization [Analysis of Changes in Core Business Financial Items](index=11&type=section&id=(%E4%B8%80)%20%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) During the reporting period, operating revenue increased by 14.58% YoY, mainly due to the development of derivative businesses; cost of sales and selling expenses increased by 16.31% and 25.86% respectively, primarily due to higher costs of derivative businesses and increased marketing efforts; R&D expenses decreased by 7.64% YoY, mainly due to the optimization of R&D personnel structure Key Financial Statement Item Changes | Item | Current Period (RMB) | Same Period Last Year (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,526,069,549.77 | 1,331,857,008.65 | 14.58 | | Operating Costs | 444,009,542.43 | 381,756,168.84 | 16.31 | | Selling Expenses | 1,087,904,808.49 | 864,373,738.76 | 25.86 | | Administrative Expenses | 67,822,386.74 | 60,622,410.63 | 11.88 | | Finance Costs | -12,171,110.20 | -13,789,471.32 | 11.74 | | R&D Expenses | 95,916,102.78 | 103,847,229.17 | -7.64 | | Net Cash Flow from Operating Activities | -227,179,863.43 | -144,069,824.32 | -57.69 | | Net Cash Flow from Investing Activities | -147,977,113.95 | -196,932,262.16 | 24.86 | | Net Cash Flow from Financing Activities | -45,719,988.49 | -15,325,010.20 | -198.34 | - Net cash flow from operating activities **decreased by 57.69%**, mainly due to the combined effect of cash inflows and outflows from operating activities[48](index=48&type=chunk) - Net cash flow from financing activities **decreased by 198.34%**, primarily due to an increase in cash outflows for dividend distribution, profit sharing, or interest payments[48](index=48&type=chunk) [Changes in Assets and Liabilities](index=12&type=section&id=(%E4%B8%89)%20%E8%B5%84%E4%BA%A7%E3%80%81%E8%B4%9F%E5%80%BA%E6%83%85%E5%86%B5%E5%88%86%E6%9E%90) At the end of the reporting period, the company's receivables and trading financial assets increased significantly by 61.70% and 308.56% respectively, mainly due to business structure adjustments and an increase in wealth management products; intangible assets decreased by 34.45% due to amortization, and accounts payable increased by 66.65% due to an increase in promotional payables; overseas assets accounted for 11.75% of total assets Major Changes in Assets and Liabilities | Item Name | End of Current Period (RMB) | % of Total Assets | End of Last Year (RMB) | % of Total Assets | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Accounts Receivable | 447,570,469.16 | 14.45 | 276,784,348.20 | 8.60 | 61.70 | Business structure adjustment, longer collection cycle | | Trading Financial Assets | 134,992,731.71 | 4.36 | 33,041,208.22 | 1.03 | 308.56 | Increase in wealth management products | | Other Receivables | 21,563,861.19 | 0.70 | 15,466,773.55 | 0.48 | 39.42 | Increase in dividends receivable | | Other Current Assets | 81,705,627.48 | 2.64 | 59,452,955.37 | 1.85 | 37.43 | Increase in input VAT to be deducted | | Intangible Assets | 57,942,255.81 | 1.87 | 88,400,172.73 | 2.75 | -34.45 | Amortization of intangible assets | | Long-term Deferred Expenses | 697,293.32 | 0.02 | 229,392.17 | 0.01 | 203.97 | New deferred expenses in the period | | Accounts Payable | 325,472,795.82 | 10.50 | 195,303,105.14 | 6.07 | 66.65 | Increase in payables for promotion | | Lease Liabilities | 6,141,066.50 | 0.20 | 8,980,364.07 | 0.28 | -31.62 | Decrease in lease payables | | Deferred Income | 0 | 0 | 500,000.00 | 0.02 | -100.00 | Government grant conditions met | | Other Non-current Liabilities | 12,667,673.17 | 0.41 | 20,745,077.32 | 0.64 | -38.94 | Long-term copyright advances recognized as revenue | - Overseas assets amounted to **RMB 363.93 million**, accounting for **11.75%** of total assets[52](index=52&type=chunk) [Investment Status](index=14&type=section&id=(%E5%9B%9B)%20%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) During the reporting period, the company's new external equity investments amounted to RMB 5 million, a 25% increase year-over-year; the closing balance of financial assets measured at fair value was RMB 527,234,286.56, mainly comprising derivative instruments and private equity funds - During the reporting period, the company made new external equity investments of **RMB 5.00 million**, an increase of **25.00%** compared to RMB 4.00 million in the same period last year[54](index=54&type=chunk) Financial Assets Measured at Fair Value at Period-End | Category | Opening Balance (RMB) | Current Period Fair Value Change (RMB) | Cumulative Fair Value Change in Equity (RMB) | Purchases (RMB) | Sales/Redemptions (RMB) | Closing Balance (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Derivative Instruments | 33,041,208.22 | 1,767,890.75 | - | 319,500,000.00 | 219,316,367.26 | 134,992,731.71 | | Private Equity Funds | 35,013,478.85 | - | - | - | - | 35,013,478.85 | | Other | 377,159,676.00 | -10,931,600.00 | - | 9,000,000.00 | 357,228,076.00 | - | | **Total** | **445,214,363.07** | **1,767,890.75** | **-10,931,600.00** | **319,500,000.00** | **228,316,367.26** | **527,234,286.56** | - The company, as a limited partner, subscribed to a capital contribution of **RMB 49.90 million** to invest in the Nanjing Huatai Zijin Emerging Industry Fund Partnership (Limited Partnership)[57](index=57&type=chunk) [Major Holding and Participating Companies](index=15&type=section&id=(%E5%85%AD)%20%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) This section lists the financial status of the company's main subsidiaries, including Hainan iReader Technology Co, Ltd, Guangxi iReader Technology Co, Ltd, and Beijing Yikan Technology Co, Ltd, all of which recorded operating and net losses during the reporting period Financials of Major Subsidiaries (H1 2025) | Company Name | Type | Main Business | Registered Capital (RMB 10,000) | Total Assets (RMB 10,000) | Net Assets (RMB 10,000) | Operating Revenue (RMB 10,000) | Operating Profit (RMB 10,000) | Net Profit (RMB 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Hainan iReader Technology Co, Ltd | Subsidiary | Digital Reading | 5,000.00 | 76,264.61 | 55,132.27 | 86,467.83 | -6,557.74 | -6,659.63 | | Guangxi iReader Technology Co, Ltd | Subsidiary | Content Operation | 200.00 | 11,530.80 | -6,568.94 | 12,763.02 | -6,842.80 | -6,842.80 | | Beijing Yikan Technology Co, Ltd | Subsidiary | Content Production | 1,000.00 | 10,722.40 | -2,153.04 | 9,726.84 | -2,613.43 | -2,638.68 | [Other Disclosures](index=15&type=section&id=%E4%BA%94%E3%80%81%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2%E4%BA%8B%E9%A1%B9) The company faces risks from regulatory policy changes, intensified market competition, rising marketing costs, content piracy, and business model transformation; it has formulated a "Quality and Efficiency Enhancement with a Focus on Returns" action plan and continues to strengthen investor relations management [Potential Risks](index=15&type=section&id=(%E4%B8%80)%20%E5%8F%AF%E8%83%BD%E9%9D%A2%E5%AF%B9%E7%9A%84%E9%A3%8E%E9%99%A9) The company faces risks from national regulatory policy adjustments, intense market competition, rising marketing costs, digital content piracy, and business model transformation and innovation, all of which could adversely affect its operating performance and development potential - Risk of regulatory policy adjustments for digital reading and derivative businesses[58](index=58&type=chunk) - Risk of increasingly fierce market competition in digital reading and derivative businesses[60](index=60&type=chunk) - Risk of declining profitability due to rising marketing costs[61](index=61&type=chunk) - Risk of digital content piracy and infringement[62](index=62&type=chunk) - Risk of business model transformation and innovation[63](index=63&type=chunk) ["Quality and Efficiency Enhancement with a Focus on Returns" Action Plan and Investor Relations](index=16&type=section&id=(%E4%BA%8C)%20%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2%E4%BA%8B%E9%A1%B9) The company is firmly advancing its business structure transformation, with derivative business revenue growing significantly, but short-term investment increases and a decline in the digital reading business have dragged down profitability; the company highly values investor returns, with a cash dividend payout ratio of 89.04% for fiscal year 2024, and continues to strengthen investor relations management through various channels to improve information disclosure quality - The company has upgraded its strategy from an "internet-era digital reading platform" to a "**multimodal content production and operation platform in the AI era**"[64](index=64&type=chunk) - Revenue from short drama and other derivative businesses **grew significantly by 149.09%**, becoming the company's largest business segment[65](index=65&type=chunk) - The proposed profit distribution plan for 2024 is a cash dividend of **RMB 1.00 per 10 shares (tax inclusive)**, with a cash dividend payout ratio of **89.04%**[66](index=66&type=chunk) - The company actively, promptly, and efficiently engages in interactive communication with investors through shareholder meetings, earnings calls, the SSE e-interaction platform, investor relations email, and hotlines[67](index=67&type=chunk) [Section 4 Corporate Governance, Environment, and Society](index=18&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E3%80%81%E7%8E%AF%E5%A2%83%E5%92%8C%E7%A4%BE%E4%BC%9A) [Changes in Directors, Supervisors, and Senior Management](index=18&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, Director and Deputy General Manager Mr. Gao Bing resigned, and Mr. Li Zhaomeng was elected as a director of the fourth Board of Directors - Mr. Gao Bing, a director and Deputy General Manager of the company, submitted his resignation[69](index=69&type=chunk) - The company elected Mr. Li Zhaomeng as a director of the fourth Board of Directors[69](index=69&type=chunk) [Semi-Annual Profit Distribution Plan](index=18&type=section&id=%E4%BA%8C%E3%80%81%E5%88%A9%E6%B6%A6%E5%88%86%E9%85%8D%E6%88%96%E8%B5%84%E6%9C%AC%E5%85%AC%E7%A7%AF%E9%87%91%E8%BD%AC%E5%A2%9E%E9%A2%84%E6%A1%88) The company does not plan to distribute profits or convert capital reserves into share capital for the first half of 2025 - The proposed semi-annual profit distribution plan and capital reserve conversion plan is "No"[70](index=70&type=chunk) [Social Responsibility and Public Welfare Projects](index=19&type=section&id=%E4%BA%94%E3%80%81%E5%B7%A9%E5%9B%BA%E6%8B%93%E5%B1%95%E8%84%B1%E8%B4%AB%E6%94%BB%E5%9D%9A%E6%88%90%E6%9E%9C%E3%80%81%E4%B9%A1%E6%9D%91%E6%8C%AF%E5%85%B4%E7%AD%89%E5%B7%A5%E4%BD%9C%E5%85%B7%E4%BD%93%E6%83%85%E5%86%B5) The company continued its "iReader Book Craftsman" public welfare project, providing home-based employment opportunities for people with disabilities by training them in e-book typesetting and proofreading skills - The company continued its disability assistance and poverty alleviation public welfare project, "**iReader Book Craftsman**"[72](index=72&type=chunk) - The project provides remote, home-based work positions by training people with disabilities in skills such as e-book typesetting, proofreading, and reviewing[72](index=72&type=chunk) - In the first half of 2025, the highest monthly income for outstanding employees in the "iReader Book Craftsman" project **exceeded RMB 7,440**[72](index=72&type=chunk) [Section 5 Significant Matters](index=20&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) [Fulfillment of Commitments](index=20&type=section&id=%E4%B8%80%E3%80%81%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9%E5%B1%A5%E8%A1%8C%E6%83%85%E5%86%B5) The company's actual controllers, directors, senior management, and shareholders with over 5% holdings have strictly fulfilled all commitments, including share sale restrictions, remedial measures, and avoidance of horizontal competition, which remain effective or have been completed on schedule - The company's actual controller, Cheng Xiangjun, has committed that the number of shares transferred annually during his tenure will not exceed **25%** of the total shares he directly or indirectly holds in the company[74](index=74&type=chunk) - All directors and senior management of the company have committed to fulfilling their duties faithfully and diligently, safeguarding the legitimate rights and interests of the listed company and all shareholders, and ensuring the effective implementation of remedial measures[74](index=74&type=chunk) - The controlling shareholders and actual controllers, Cheng Xiangjun and Zhang Lingyun, have committed not to improperly interfere in the company's management and operations, not to encroach on the company's interests, and to fulfill relevant measures to mitigate the dilution of immediate returns[75](index=75&type=chunk) - Cheng Xiangjun has committed to avoiding horizontal competition, and Zhang Lingyun has committed not to seek control of iReader Technology[75](index=75&type=chunk)[77](index=77&type=chunk) [Significant Related-Party Transactions](index=24&type=section&id=%E5%8D%81%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company engaged in routine related-party transactions such as copyright distribution and ad monetization, with a total actual transaction amount of RMB 522.91 million, of which ad monetization was the largest at RMB 241.29 million - The company and its subsidiaries engaged in related-party transactions related to daily operations such as copyright distribution and ad monetization[79](index=79&type=chunk) Execution of Routine Related-Party Transactions in H1 2025 | Transaction Category | Related Party | 2025 Estimated Amount (RMB 10,000) | Actual Amount in Reporting Period (Excluding Tax, RMB 10,000) | | :--- | :--- | :--- | :--- | | Copyright Translation | Douyin Vision Co, Ltd, etc | 9,000.00 | 3,268.20 | | Derivative | - | - | 23,360.00 | | Ad Monetization | Hubei Ocean Engine Technology Co, Ltd, etc | 70,000.00 | 24,129.34 | | Service Fee | Beijing Feishu Technology Co, Ltd | 200.00 | 111.37 | | Service Fee | Beijing Volcano Engine Technology Co, Ltd | 700.00 | 408.91 | | Service Fee | Wuhan Ocean Engine Xingtu Technology Co, Ltd, etc | 10,000.00 | 957.19 | | Other | Chengdu Guanghe Signal Technology Co, Ltd, etc | 300.00 | 51.19 | | **Total** | - | **90,200.00** | **52,290.64** | [Progress on the Use of Raised Funds](index=27&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E5%8B%9F%E9%9B%86%E8%B5%84%E9%87%91%E4%BD%BF%E7%94%A8%E8%BF%9B%E5%B1%95%E8%AF%B4%E6%98%8E) The use of raised funds has progressed smoothly, with a cumulative investment of RMB 838.06 million, reaching an 80.76% progress rate; some projects are complete, and surplus funds have been permanently allocated to working capital, while the "Technology Center Construction Project" was changed to the "Intelligent Middle Platform Technology Upgrade Project" Overall Use of Raised Funds | Source | Date Received | Total Amount (RMB 10,000) | Net Amount (1) (RMB 10,000) | Committed Investment (2) (RMB 10,000) | Cumulative Investment (4) (RMB 10,000) | Cumulative Progress (%) (6)=(4)/(1) | Current Year Investment (8) (RMB 10,000) | Current Year % (9)=(8)/(1) | Amount for Changed Use (RMB 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Private Placement | Feb 3, 2021 | 106,111.14 | 103,770.08 | 106,111.14 | 83,806.27 | 80.76% | 5,140.79 | 4.95% | 34,516.00 | - The "Digital Copyright Resource Upgrade and Construction Project" has been completed, and the surplus raised funds of **RMB 9.03 million** have been permanently allocated to working capital[90](index=90&type=chunk) - The original investment project "Technology Center Construction Project" was changed to the "Intelligent Middle Platform Technology Upgrade Project," with a changed amount of **RMB 345.16 million**[91](index=91&type=chunk) - The company uses idle raised funds not exceeding **RMB 310 million** for cash management for a period of 12 months from the date of approval by the Board of Directors[93](index=93&type=chunk) [Other Significant Matters](index=30&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9%E7%9A%84%E8%AF%B4%E6%98%8E) There were no other significant matters requiring disclosure during the reporting period [Section 6 Changes in Share Capital and Shareholders](index=31&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) [Changes in Share Capital](index=31&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E6%9C%AC%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) The company's total number of shares and share capital structure remained unchanged during the reporting period - During the reporting period, the company's total number of shares and share capital structure **remained unchanged**[97](index=97&type=chunk) [Shareholder Information](index=31&type=section&id=%E4%BA%8C%E3%80%81%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) As of the end of the reporting period, the company had 63,055 common shareholders; shareholding is concentrated among the top ten shareholders, with Cheng Xiangjun and Zhang Lingyun collectively holding 41.97%, although their acting-in-concert relationship was terminated on February 28, 2025 - The total number of common shareholders at the end of the reporting period was **63,055**[98](index=98&type=chunk) Top Ten Shareholders' Holdings at Period-End | Shareholder Name | Shares Held (Shares) | Percentage (%) | Shareholder Type | | :--- | :--- | :--- | :--- | | Cheng Xiangjun | 93,352,370 | 21.27 | Domestic Individual | | Zhang Lingyun | 90,851,049 | 20.70 | Domestic Individual | | Beijing Quantum-leap Technology Co, Ltd | 27,357,246 | 6.23 | Domestic Non-state-owned Corp | | Liu Weiping | 13,599,154 | 3.10 | Domestic Individual | | Wang Liang | 13,502,014 | 3.08 | Domestic Individual | | Hong Kong Securities Clearing Company Ltd | 9,156,375 | 2.09 | Other | | Zhejiang Junhong Asset Management Co, Ltd - Junhong Qianjiang No. 11 Private Fund | 8,600,000 | 1.96 | Other | | China Life Insurance Co, Ltd - Universal - Guoshou Ruian | 2,743,900 | 0.63 | Other | | Bosera Asset Management - China Merchants Bank - Bosera Qinchuan No. 1 Collective Asset Management Plan | 2,703,600 | 0.62 | Other | | China Merchants Bank Co, Ltd - Southern CSI 1000 ETF | 2,426,100 | 0.55 | Other | - As of February 28, 2025, Mr. Zhang Lingyun and Mr. Cheng Xiangjun were acting in concert, collectively holding 184,203,419 shares, representing **41.97%** of the company's share capital; their acting-in-concert relationship was terminated thereafter[101](index=101&type=chunk) [Changes in Controlling Shareholder and Actual Controller](index=33&type=section&id=%E5%9B%9B%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E6%88%96%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E5%8F%98%E6%9B%B4%E6%83%85%E5%86%B5) Effective February 28, 2025, the company's controlling shareholder and actual controller changed from Cheng Xiangjun and Zhang Lingyun to solely Cheng Xiangjun, following the non-renewal of their acting-in-concert agreement - The new controlling shareholder and new actual controller is **Cheng Xiangjun**[102](index=102&type=chunk) - The date of change was **February 28, 2025**[102](index=102&type=chunk) - The reason for the change was that the "Acting-in-Concert Agreement" and its "Supplementary Agreement" signed by Mr. Zhang Lingyun and Mr. Cheng Xiangjun were not renewed upon expiration on February 28, 2025, thereby terminating their acting-in-concert relationship[102](index=102&type=chunk) [Section 7 Bond-Related Matters](index=34&type=section&id=%E7%AC%AC%E4%B8%83%E8%8A%82%20%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) [Corporate Bonds and Debt Financing Instruments](index=34&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%EF%BC%88%E5%90%AB%E4%BC%81%E4%B8%9A%E5%80%BA%E5%88%B8%EF%BC%89%E5%92%8C%E9%9D%9E%E9%87%91%E8%9E%8D%E4%BC%81%E4%B8%9A%E5%80%BA%E5%8A%A1%E8%9E%8D%E8%B5%84%E5%B7%A5%E5%85%B7) The company had no corporate bonds or non-financial corporate debt financing instruments during the reporting period [Convertible Corporate Bonds](index=34&type=section&id=%E4%BA%8C%E3%80%81%E5%8F%AF%E8%BD%AC%E6%8D%A2%E5%85%AC%E5%8F%B8%E5%80%BA%E5%88%B8%E6%83%85%E5%86%B5) The company had no convertible corporate bonds during the reporting period [Section 8 Financial Report](index=35&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) [Auditor's Report](index=35&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) This semi-annual financial report is unaudited - This semi-annual report is **unaudited**[107](index=107&type=chunk) [Financial Statements](index=35&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section provides the consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owner's equity for H1 2025, offering a comprehensive view of the company's financial position, operating results, and cash flows [Consolidated Balance Sheet](index=35&type=section&id=%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of June 30, 2025, the company's consolidated total assets were RMB 3,098,420,389.62, total current assets were RMB 2,346,724,362.02, total liabilities were RMB 696,329,028.13, and total equity attributable to parent company owners was RMB 2,368,122,807.38 - At period-end, cash and cash equivalents were **RMB 1,593,445,952.29**, trading financial assets were **RMB 134,992,731.71**, and accounts receivable were **RMB 447,570,469.16**[107](index=107&type=chunk) - At period-end, accounts payable were **RMB 325,472,795.82**, and contract liabilities were **RMB 219,348,389.66**[108](index=108&type=chunk) [Parent Company Balance Sheet](index=37&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of June 30, 2025, the parent company's total assets were RMB 3,329,741,119.65, total current assets were RMB 1,982,431,753.55, total liabilities were RMB 949,962,604.83, and total equity was RMB 2,379,778,514.82 - At period-end, cash and cash equivalents were **RMB 1,225,797,559.99**, accounts receivable were **RMB 412,406,916.39**, and other receivables were **RMB 194,069,290.94**[111](index=111&type=chunk) - At period-end, accounts payable were **RMB 250,117,944.00**, and contract liabilities were **RMB 112,437,073.05**[112](index=112&type=chunk) [Consolidated Income Statement](index=39&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) For Jan-Jun 2025, the company's consolidated total operating revenue was RMB 1,526,069,549.77, total operating costs were RMB 1,689,425,268.88, total profit was -RMB 148,638,110.67, and net profit attributable to parent company shareholders was -RMB 160,141,782.55 - Operating revenue **increased by 14.58%** YoY, operating costs **increased by 16.31%** YoY, and selling expenses **increased by 25.86%** YoY[115](index=115&type=chunk) - Total profit **decreased by 225.81%** YoY, and net profit attributable to parent company shareholders **decreased by 235.68%** YoY[115](index=115&type=chunk)[117](index=117&type=chunk) - Basic earnings per share was **-RMB 0.36/share**, and diluted earnings per share was **-RMB 0.36/share**[117](index=117&type=chunk) [Parent Company Income Statement](index=41&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E5%88%A9%E6%B6%A6%E8%A1%A8) For Jan-Jun 2025, the parent company's operating revenue was RMB 680,337,952.38, and net profit was RMB 39,002,358.44, achieving a turnaround from a loss in the same period last year - The parent company's operating revenue **increased by 32.23%** YoY[119](index=119&type=chunk) - The parent company's net profit was **RMB 39,002,358.44**, compared to -RMB 47,827,864.63 in the same period last year, achieving a **turnaround to profitability**[120](index=120&type=chunk) [Consolidated Cash Flow Statement](index=42&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For Jan-Jun 2025, the company's net cash flow from operating activities was -RMB 227,179,863.43, net cash flow from investing activities was -RMB 147,977,113.95, net cash flow from financing activities was -RMB 45,719,988.49, and the net increase in cash and cash equivalents was -RMB 422,167,746.64 - Cash inflows from operating activities totaled **RMB 1,414,439,832.38**, while outflows totaled **RMB 1,641,619,695.81**[122](index=122&type=chunk) - Cash inflows from investing activities totaled **RMB 433,858,251.38**, while outflows totaled **RMB 581,835,365.33**[123](index=123&type=chunk) - Cash outflows from financing activities totaled **RMB 45,719,988.49**, mainly for dividend distribution, profit sharing, or interest payments[123](index=123&type=chunk) [Parent Company Cash Flow Statement](index=44&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For Jan-Jun 2025, the parent company's net cash flow from operating activities was -RMB 252,662,436.17, net cash flow from investing activities was -RMB 167,213,974.55, net cash flow from financing activities was -RMB 45,629,277.77, and the net increase in cash and cash equivalents was -RMB 465,505,688.49 - The parent company's cash inflows from operating activities totaled **RMB 622,429,895.46**, while outflows totaled **RMB 875,092,331.63**[126](index=126&type=chunk) - The parent company's cash inflows from investing activities totaled **RMB 229,487,999.55**, while outflows totaled **RMB 396,701,974.10**[126](index=126&type=chunk) - The parent company's cash outflows from financing activities totaled **RMB 45,629,277.77**, mainly for dividend distribution, profit sharing, or interest payments[126](index=126&type=chunk) [Consolidated Statement of Changes in Owner's Equity](index=47&type=section&id=%E5%90%88%E5%B9%B6%E6%89%80%E6%9C%89%E8%80%85%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) For Jan-Jun 2025, the company's consolidated total owner's equity decreased by RMB 208,611,418.23, mainly due to a total comprehensive income attributable to parent company owners of -RMB 172,069,290.56 and profit distribution of RMB 43,889,683.50 - Equity attributable to parent company owners was **RMB 2,584,081,781.44** at the beginning of the period and **RMB 2,368,122,807.38** at the end[129](index=129&type=chunk)[133](index=133&type=chunk) - Total comprehensive income attributable to parent company owners for the period was **-RMB 172,069,290.56**[130](index=130&type=chunk) - Profit distribution to owners for the period was **RMB 43,889,683.50**[131](index=131&type=chunk) [Parent Company Statement of Changes in Owner's Equity](index=54&type=section&id=%E6%AF%8D%E5%85%AC%E5%8F%B8%E6%89%80%E6%9C%89%E8%80%85%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) For Jan-Jun 2025, the parent company's total owner's equity decreased by RMB 15,818,925.06, mainly due to a total comprehensive income of RMB 28,070,758.44 and profit distribution of RMB 43,889,683.50 - The parent company's owner's equity was **RMB 2,395,597,439.88** at the beginning of the period and **RMB 2,379,778,514.82** at the end[138](index=138&type=chunk)[139](index=139&type=chunk) - The parent company's total comprehensive income for the period was **RMB 28,070,758.44**[138](index=138&type=chunk) - The parent company's profit distribution to owners for the period was **RMB 43,889,683.50**[139](index=139&type=chunk) [Company Profile](index=58&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) iReader Technology Co, Ltd was established on September 8, 2008, and its total share capital has changed to 438,896,835 shares following several equity changes and private placements; the company's main operations are digital reading platform services and copyright product businesses - iReader Technology Co, Ltd was established on **September 8, 2008**[142](index=142&type=chunk) - The company's total share capital changed from 401,000,000.00 shares to **438,896,835.00 shares**[142](index=142&type=chunk) - The company's main operating activities are digital reading platform services and copyright product businesses[142](index=142&type=chunk) [Basis of Preparation for Financial Statements](index=58&type=section&id=%E5%9B%9B%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E7%9A%84%E7%BC%96%E5%88%B6%E5%9F%BA%E7%A1%80) The financial statements are prepared on a going concern basis in accordance with the Enterprise Accounting Standards and relevant guidelines, and comply with CSRC disclosure requirements; the company has assessed its going concern ability as sound - The company prepares its financial statements on a going concern basis, recognizing and measuring transactions and events in accordance with the Enterprise Accounting Standards and their application guides and interpretations[144](index=144&type=chunk) - The company has assessed its going concern ability for the 12 months from the end of the reporting period and found no matters that would affect its ability to continue as a going concern[145](index=145&type=chunk) [Significant Accounting Policies and Estimates](index=58&type=section&id=%E4%BA%94%E3%80%81%E9%87%8D%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%8A%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1) This section details significant accounting policies and estimates, including compliance with accounting standards, accounting period, operating cycle, functional currency, materiality, business combinations, consolidation, joint arrangements, financial instruments, revenue recognition, and leases - The company adheres to the Enterprise Accounting Standards, with a 12-month operating cycle and RMB as its functional currency[147](index=147&type=chunk)[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk) - Financial instruments are classified as financial assets measured at amortized cost, at fair value through profit or loss, or at fair value through other comprehensive income, with loss provisions recognized based on expected credit losses[172](index=172&type=chunk)[179](index=179&type=chunk) - Revenue is recognized when performance obligations are satisfied and the customer obtains control of the related goods, measured based on contract terms and factors such as variable consideration[230](index=230&type=chunk) - The company applies simplified accounting for short-term leases and low-value asset leases, expensing lease payments to relevant asset costs or current profit or loss[247](index=247&type=chunk) [Taxes](index=95&type=section&id=%E5%85%AD%E3%80%81%E7%A8%8E%E9%A1%B9) The company's main taxes include VAT and corporate income tax; the company and several subsidiaries benefit from a preferential 15% corporate income tax rate for high-tech enterprises, with some also enjoying tax incentives in the Hainan Free Trade Port and western regions Main Taxes and Tax Rates | Tax Type | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Taxable Income | 3%, 6%, 9%, 13% | | Urban Maintenance and Construction Tax | Payable Turnover Tax | 1%, 5%, 7% | | Cultural Undertaking Construction Fee | - | 3% | | Local Education Surcharge | Payable Turnover Tax | 2% | | Education Surcharge | Payable Turnover Tax | 3% | | Corporate Income Tax | Taxable Income | 15%, 16.5%, 17%, 20%, 21%, 25% | - iReader Technology Co, Ltd, Hainan iReader Technology Co, Ltd, Guangxi iReader Technology Co, Ltd, Beijing Dejian Technology Co, Ltd, and Changsha Xinyue Culture Media Co, Ltd are subject to a **15%** corporate income tax rate[258](index=258&type=chunk)[259](index=259&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk) - Some subsidiaries enjoy preferential policies for small and micro enterprises, with taxable income calculated at a reduced rate of 25% and taxed at a **20%** rate[260](index=260&type=chunk) - Guangxi iReader Technology Co, Ltd and its subsidiaries benefit from a **15%** income tax rate for encouraged industries in the western region and a 5-year exemption from the local portion of corporate income tax[261](index=261&type=chunk)[262](index=262&type=chunk) [Notes to Consolidated Financial Statement Items](index=97&type=section&id=%E4%B8%83%E3%80%81%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed disclosures for each item in the consolidated financial statements, including cash and cash equivalents, trading financial assets, accounts receivable, operating revenue and costs, selling expenses, R&D expenses, and cash flow statement items, with explanations for significant changes - The closing balance of cash and cash equivalents was **RMB 1,593,445,952.29**, of which RMB 220,000,000.00 was in large-denomination time deposits[264](index=264&type=chunk) - The closing gross balance of accounts receivable was **RMB 460,049,602.75**, with a bad debt provision of RMB 12,479,133.59, mainly due to business structure adjustments and longer collection cycles[268](index=268&type=chunk)[269](index=269&type=chunk)[272](index=272&type=chunk) - The closing carrying amount of long-term equity investments was **RMB 278,976,215.31**, primarily investments in associates[304](index=304&type=chunk) - The closing carrying amount of intangible assets was **RMB 57,942,255.81**, mainly consisting of purchased copyrights and software[324](index=324&type=chunk) - Operating revenue for the period was **RMB 1,526,069,549.77**, and the cost of sales was **RMB 444,009,542.43**[379](index=379&type=chunk) - Selling expenses for the period were **RMB 1,087,904,808.49**, primarily promotional fees[382](index=382&type=chunk) - R&D expenses for the period were **RMB 95,916,102.78**, mainly consisting of salaries, benefits, and social security contributions[384](index=384&type=chunk) [Research and Development Expenses](index=149&type=section&id=%E5%85%AB%E3%80%81%E7%A0%94%E5%8F%91%E6%94%AF%E5%87%BA) During the reporting period, total R&D expenditure was RMB 95.92 million, a year-over-year decrease of 7.64%, all of which was expensed and primarily consisted of employee compensation R&D Expenses by Nature | Item | Current Period (RMB) | Prior Period (RMB) | | :--- | :--- | :--- | | Salaries, Benefits, Social Security, etc | 93,524,952.68 | 100,352,048.19 | | Technical Service Fees | 1,538,334.03 | 2,775,325.06 | | Depreciation and Amortization | 651,936.40 | 606,519.58 | | Other | 200,879.67 | 113,336.34 | | **Total** | **95,916,102.78** | **103,847,229.17** | | Of which: Expensed R&D | 95,916,102.78 | 103,847,229.17 | | Capitalized R&D | - | - | - R&D expenses for the current period **decreased by 7.64%** year-over-year, mainly due to the optimization of R&D personnel structure[48](index=48&type=chunk) [Changes in the Scope of Consolidation](index=150&type=section&id=%E4%B9%9D%E3%80%81%E5%90%88%E5%B9%B6%E8%8C%83%E5%9B%B4%E7%9A%84%E5%8F%98%E6%9B%B4) The company significantly expanded its scope of consolidation by establishing numerous new subsidiaries for digital reading, content operation, and production, including Beijing Jingmu Technology Co, Ltd and Good Drama Corp - During the reporting period, the company established dozens of new subsidiaries, primarily located in Beijing, Wuhan, Hefei, Jinan, Beihai, as well as overseas in Hong Kong, Singapore, and the United States[422](index=422&type=chunk)[429](index=429&type=chunk)[430](index=430&type=chunk)[431](index=431&type=chunk)[432](index=432&type=chunk)[433](index=433&type=chunk)[434](index=434&type=chunk)[435](index=435&type=chunk)[436](index=436&type=chunk)[437](index=437&type=chunk)[438](index=438&type=chunk)[439](index=439&type=chunk)[440](index=440&type=chunk) - The business nature of the new subsidiaries mainly includes digital reading, content operation, content production and operation, and technology R&D[427](index=427&type=chunk)[428](index=428&type=chunk)[429](index=429&type=chunk)[430](index=430&type=chunk)[431](index=431&type=chunk)[432](index=432&type=chunk)[433](index=433&type=chunk)[434](index=434&type=chunk)[435](index=435&type=chunk)[436](index=436&type=chunk)[437](index=437&type=chunk)[438](index=438&type=chunk)[439](index=439&type=chunk)[440](index=440&type=chunk) [Interests in Other Entities](index=151&type=section&id=%E5%8D%81%E3%80%81%E5%9C%A8%E5%85%B6%E4%BB%96%E4%B8%BB%E4%BD%93%E4%B8%AD%E7%9A%84%E6%9D%83%E7%9B%8A) This section details the company's interests in subsidiaries, joint ventures, and associates; the company holds numerous subsidiaries in content and digital reading businesses and has investments in associates like Hangzhou Quread Information Technology, accounted for using the equity method - The company has numerous subsidiaries, including Tianjin iReader Culture Communication Co, Ltd, Shenzhen iReader Animation Technology Co, Ltd, Beijing Dejian Technology Co, Ltd, and Hainan iReader Technology Co, Ltd, with ownership stakes mostly at 100% or over 70%[427](index=427&type=chunk)[428](index=428&type=chunk)[429](index=429&type=chunk)[430](index=430&type=chunk)[431](index=431&type=chunk)[432](index=432&type=chunk)[433](index=433&type=chunk)[434](index=434&type=chunk)[435](index=435&type=chunk)[436](index=436&type=chunk)[437](index=437&type=chunk)[438](index=438&type=chunk)[439](index=439&type=chunk)[440](index=440&type=chunk) - The company has investments in associates such as Hangzhou Quread Information Technology Co, Ltd, Nanjing Moread Information Technology Co, Ltd, and Nanjing Fenbu Culture Development Co, Ltd, with ownership stakes ranging from 20% to 50%[443](index=443&type=chunk) - The total carrying amount of investments in immaterial associates is **RMB 278,976,215.31**, with a net profit of **RMB 8,710,572.70** calculated based on the ownership percentage for the current period[444](index=444&type=chunk) [Government Grants](index=165&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E6%94%BF%E5%BA%9C%E8%A1%A5%E5%8A%A9) During the reporting period, the company reclassified the opening balance of RMB 0.50 million in other government grants (income-related) to other income, with the total amount of government grants recognized in profit or loss for the period being RMB 3.54 million Changes in Liability Items for Government Grants | Financial Statement Item | Opening Balance (RMB) | New Grants (RMB) | Recognized in Non-operating Income (RMB) | Reclassified to Other Income (RMB) | Other Changes (RMB) | Closing Balance (RMB) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Other Government Grants | 500,000.00 | - | - | 500,000.00 | - | - | Income-related | - The amount of government grants (income-related) recognized in the current period's profit or loss was **RMB 3,538,041.79**[448](index=448&type=chunk) [Risks Related to Financial Instruments](index=166&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E4%B8%8E%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E7%9B%B8%E5%85%B3%E7%9A%84%E9%A3%8E%E9%99%A9) The company faces credit risk, liquidity risk, and market risk (mainly foreign exchange risk), which are managed by assessing customer credit, monitoring liquidity needs, and tracking exchange rate fluctuations; credit risk exposure is mainly from accounts receivable, while foreign exchange risk relates to assets and liabilities denominated in HKD and USD - The company faces **credit risk, liquidity risk, and market risk (foreign exchange risk)**[448](index=448&type=chunk) - Credit risk mainly arises from cash and cash equivalents, notes receivable, accounts receivable, and other receivables, and is controlled by assessing customer creditworthiness and regularly monitoring credit records[448](index=448&type=chunk)[449](index=449&type=chunk) - Liquidity risk is managed by regularly monitoring short-term and long-term liquidity needs and complying with loan agreement provisions[453](index=453&type=chunk) - Foreign exchange risk primarily comes from foreign currency assets and liabilities denominated in HKD and USD; if the RMB appreciates or depreciates by 10% against the USD, the annual net profit would decrease or increase by **RMB 6.77 million**[454](index=454&type=chunk)[457](index=457&type=chunk) [Fair Value Disclosures](index=170&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%AC%E5%85%81%E4%BB%B7%E5%80%BC%E7%9A%84%E6%8A%AB%E9%9C%B2) The company discloses the fair value of assets and liabilities measured at fair value, primarily including trading financial assets and other equity investments; the fair value of structured deposits is classified as Level 2, while the fair value of investee companies is measured at cost or using reasonable valuation techniques Fair Value Measurement Items at Period-End | Item | Level 1 Fair Value (RMB) | Level 2 Fair Value (RMB) | Level 3 Fair Value (RMB) | Total (RMB) | | :--- | :--- | :--- | :--- | :--- | | **I. Continuous Fair Value Measurement** | - | - | - | - | | (I) Trading Financial Assets | - | 134,992,731.71 | 35,013,478.85 | 170,006,210.56 | | 1. Financial assets at FVTPL | - | 134,992,731.71 | 35,013,478.85 | 170,006,210.56 | | (2) Equity instrument investments | - | - | 35,013,478.85 | 35,013,478.85 | | (3) Derivative financial assets | - | 134,992,731.71 | - | 134,992,731.71 | | (III) Other Equity Investments | - | - | 357,228,076.00 | 357,228,076.00 | | **Total Assets at Continuous Fair Value** | - | **134,992,731.71** | **392,241,554.85** | **527,234,286.56** | - The fair value of structured deposits is classified as **Level 2**, with valuation based on directly observable inputs such as interest rates, exchange rates, and commodity prices[462](index=462&type=chunk) - For investee companies, if there are no significant changes in the operating environment or financial condition, the investment cost is used as a reasonable estimate of fair value; otherwise, reasonable valuation techniques are employed[463](index=463&type=chunk) [Related Parties and Related-Party Transactions](index=172&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E5%8F%8A%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company's related parties include associates and several companies related to the ByteDance group; related-party transactions involved copyright procurement, channel sharing, service fees, advertising, and derivative businesses, with advertising and derivative business transactions being the most significant - The company's related parties include associates such as Hangzhou Quread Information Technology Co, Ltd, Nanjing Moread Information Technology Co, Ltd, and Nanjing Fenbu Culture Development Co, Ltd[465](index=465&type=chunk) - Other related parties include Xiamen Toutiao Information Technology Co, Ltd, Douyin Vision Co, Ltd, Hubei Ocean Engine Technology Co, Ltd, and Beijing Bytedance Network Technology Co, Ltd[465](index=465&type=chunk)[466](index=466&type=chunk) Key Related-Party Transactions in H1 2025 | Transaction Content | Related Party | Amount (RMB) | | :--- | :--- | :--- | | Copyright Procurement | Nanjing Fenbu Culture Development Co, Ltd | 13,820,809.03 | | Service Fee | Beijing Volcano Engine Technology Co, Ltd | 4,089,090.29 | | Advertising and Marketing | Xiamen Toutiao Information Technology Co, Ltd | 107,305,805.36 | | Advertising and Marketing | Chengdu Ocean Engine Information Technology Co, Ltd | 133,982,464.50 | | Derivative Business | Beijing Bytedance Network Technology Co, Ltd | 214,949,916.93 | | Derivative Business | Douyin Vision Co, Ltd | 14,455,731.91 | - Key management personnel compensation for the period amounted to **RMB 5.025 million**[471](index=471&type=chunk) [Share-based Payment](index=177&type=section&id=%E5%8D%81%E4%BA%94%E3%80%81%E8%82%A1%E4%BB%BD%E6%94%AF%E4%BB%98) The company had no share-based payment arrangements during the reporting period [Commitments and Contingencies](index=177&type=section&id=%E5%8D%81%E5%85%AD%E3%80%81%E6%89%BF%E8%AF%BA%E5%8F%8A%E6%88%96%E6%9C%89%E4%BA%8B%E9%A1%B9) The company had no significant commitments or contingencies to disclose during the reporting period [Post-Balance Sheet Events](index=178&type=section&id=%E5%8D%81%E4%B8%83%E3%80%81%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8%E6%97%A5%E5%90%8E%E4%BA%8B%E9%A1%B9) The company had no significant non-adjusting events, profit distribution plans, sales returns, or other post-balance sheet events to report [Other Significant Matters](index=178&type=section&id=%E5%8D%81%E5%85%AB%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) The company had no prior period accounting error corrections, significant debt restructuring, asset swaps, annuity plans, discontinued operations, segment information, or other significant transactions and matters affecting investor decisions to report [Notes to Parent Company Financial Statement Items](index=179&type=section&id=%E5%8D%81%E4%B9%9D%E3%80%81%E6%AF%8D%E5%85%AC%E5%8F%B8%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E4%B8%BB%E8%A6%81%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed disclosures for major items in the parent company's financial statements, including accounts receivable, other receivables, and long-term equity investments, with explanations for significant changes - The parent company's closing gross balance of accounts receivable was **RMB 419,301,356.02**, with a bad debt provision of **RMB 6,894,439.63**[180](index=180&type=chunk)[181](index=181&type=chunk) - The parent company's closing balance of other receivables was **RMB 189,079,290.94**, including **RMB 186,164,028.36** in intercompany receivables[191](index=191&type=chunk)[499](index=499&type=chunk) - The parent company's closing carrying amount of long-term equity investments was **RMB 935,696,513.69**, including investments in subsidiaries, associates, and joint ventures[507](index=507&type=chunk) - The parent company's closing carrying amount of investments in subsidiaries was **RMB 660,673,364.55**, with an additional investment of **RMB 25,000,000.00** during the period[508](index=508&type=chunk)[519](index=519&type=chunk) - The parent company's closing carrying amount of investments in associates and joint ventures was **RMB 275,023,149.14**, with investment income of **RMB 9,757,506.53** recognized under the equity method during the period[507](index=507&type=chunk)[522](index=522&type=chunk) [Supplementary Information](index=197&type=section&id=%E4%BA%8C%E5%8D%81%E3%80%81%E8%A1%A5%E5%85%85%E8%B5%84%E6%96%99) This section provides a detailed schedule of non-recurring profit and loss and information on return on net assets and earnings per share; total non-recurring profit and loss was RMB 10.79 million, and the weighted average return on net assets was -6.40% Details of Non-recurring Profit and Loss for H1 2025 | Item | Amount (RMB) | | :--- | :--- | | Gain/Loss on Disposal of Non-current Assets | 67,499.43 | | Government Grants Recognized in Current Profit or Loss | 4,508,891.60 | | Fair Value Changes in Financial Assets and Liabilities Held by Non-financial Enterprises | 6,757,890.75 | | Other Non-operating Income and Expenses | -436,136.28 | | Less: Income Tax Impact | -8,535.93 | | Minority Interest Impact (After Tax) | 112,190.09 | | **Total** | **10,794,491.34** | Return on Net Assets and Earnings Per Share for H1 2025 | Profit for the Reporting Period | Weighted Average Return on Net Assets (%) | Earnings Per Share (RMB/Share) | | :--- | :--- | :--- | | Net Profit Attributable to Common Shareholders | -6.40 | -0.36 | | Net Profit Attributable to Common Shareholders (Excluding Non-recurring Items) | -6.83 | -0.39 |

Group 1 - The core viewpoint of the announcement is that the company reported a revenue of 1.526 billion yuan for the first half of 2025, reflecting a year-on-year growth of 14.58% [1] - The net profit attributable to shareholders of the listed company was a loss of 160 million yuan, representing a year-on-year decline of 235.68% [1] - The company will not distribute profits or convert capital reserves into share capital for the first half of 2025 [1]

Market Performance - On August 25, the digital media sector rose by 2.31%, with "Zhi De Mai" leading the gains [1] - The Shanghai Composite Index closed at 3883.56, up 1.51%, while the Shenzhen Component Index closed at 12441.07, up 2.26% [1] Individual Stock Performance - "Zhi De Mai" (300785) closed at 36.92, up 6.31% with a trading volume of 265,600 shares and a turnover of 964 million yuan [1] - "Mango Super Media" (300413) closed at 27.09, up 6.11% with a trading volume of 583,500 shares and a turnover of 1.523 billion yuan [1] - "Na Yue Technology" (603533) closed at 22.46, up 5.05% with a trading volume of 307,500 shares and a turnover of 676 million yuan [1] - "Visual China" (000681) closed at 22.24, up 1.46% with a trading volume of 506,200 shares and a turnover of 1.126 billion yuan [1] Capital Flow Analysis - The digital media sector saw a net inflow of 84.871 million yuan from institutional investors, while retail investors experienced a net outflow of 21.647 million yuan [2] - "Mango Super Media" had a net inflow of 13.8 million yuan from institutional investors, but retail investors withdrew 80.882 million yuan [3] - "Visual China" experienced a net outflow of 1.4743 million yuan from institutional investors, while retail investors had a net inflow of 3.2268 million yuan [3]