Summary of Key Points Core Viewpoint - The company has announced the achievement of the vesting conditions for the second vesting period of its 2023 restricted stock incentive plan, allowing for the vesting of 52.696 million shares to 190 eligible participants [1][10]. Group 1: Incentive Plan Overview - The restricted stock incentive plan was approved by the board and shareholders on August 22 and September 7, 2023, respectively, representing 3.22% of the company's total share capital at the time of the announcement [1][2]. - The total number of restricted shares granted is 80 million, with 100% allocated to 240 core employees [2]. Group 2: Vesting Conditions and Performance Targets - The vesting arrangement includes two periods: the first vesting period allows for 50% vesting after 12 months, and the second period allows for another 50% vesting after 24 months [2][4]. - The performance targets for the first vesting period require a revenue growth rate of at least 19.95% for 2023, while the second period requires a growth rate of at least 30.85% for 2024, based on 2022 revenue [4][7]. Group 3: Approval and Compliance - The board has confirmed that the vesting conditions for the second period have been met, allowing for the vesting of 52.696 million shares [10][12]. - The company has followed necessary procedures and regulations, including obtaining legal opinions and independent financial advisory reports, to ensure compliance with relevant laws and regulations [13][14]. Group 4: Impact on Financials - The vesting of these shares will increase the total share capital from 3,537,525,227 shares to 3,590,221,227 shares, which may dilute earnings per share and return on equity, but is not expected to have a significant impact on the company's financial condition or operational results [15].

Group 1 - The company reported a revenue of 32.36 billion yuan for the first half of 2025, representing a year-on-year increase of 4.87% [1] - The net profit attributable to shareholders was 96.44 million yuan, showing a year-on-year decline of 47.33% [1] - The company announced plans not to distribute cash dividends, issue bonus shares, or increase share capital from reserves [1]

Core Insights - The company reported a revenue of 32.36 billion yuan for the first half of 2025, representing a year-on-year growth of 4.87% [1] - The net profit attributable to shareholders decreased by 47.33% to 96.44 million yuan, with basic earnings per share at 0.0273 yuan [1] - The company's "All in AI" strategy has been fully implemented, driving revenue growth across various sectors including gaming, e-commerce, and internet applications [1] - The overseas business contributed approximately 27 billion yuan to the total revenue [1] Financial Performance - Revenue for H1 2025: 32.36 billion yuan, up 4.87% year-on-year [1] - Net profit for H1 2025: 96.44 million yuan, down 47.33% year-on-year [1] - Basic earnings per share: 0.0273 yuan [1] Strategic Initiatives - The company is focusing on an "All in AI" strategy to enhance revenue growth [1] - Revenue growth is being driven by clients in gaming, e-commerce, and internet applications [1] Business Segments - Revenue from overseas business: approximately 27 billion yuan [1]

Section I Important Notes, Table of Contents, and Definitions [Important Notes](index=2&type=section&id=Important%20Notes) The board, supervisory board, and senior management guarantee the report's accuracy, completeness, and truthfulness, while advising investors to be aware of risks - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report content[4](index=4&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[5](index=5&type=chunk) - Content regarding future plans and performance forecasts in this report does not constitute a commitment to investors, who should maintain sufficient risk awareness[4](index=4&type=chunk) [Table of Contents](index=3&type=section&id=Table%20of%20Contents) This section lists the complete report structure, covering important notes, company profile, MD&A, corporate governance, significant matters, share changes, bond information, and financial reports [Definitions](index=5&type=section&id=Definitions) This section defines key terms used in the report, including company names, regulatory bodies, exchanges, and reporting periods, to ensure clear understanding - "BlueFocus", "the Company", "the Listed Company" all refer to Beijing BlueFocus Intelligent Marketing Group Co., Ltd[10](index=10&type=chunk) - "Reporting Period" refers to January 1, 2025, to June 30, 2025[10](index=10&type=chunk) - "Prior Year Period" refers to January 1, 2024, to June 30, 2024[10](index=10&type=chunk) Section II Company Profile and Key Financial Indicators [1. Company Profile](index=6&type=section&id=1.%20Company%20Profile) This section provides the company's basic information, including stock ticker, code, listing exchange, Chinese and English names, and legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | BlueFocus | | Stock Code | 300058 | | Listed Stock Exchange | Shenzhen Stock Exchange | | Chinese Name | 北京蓝色光标数据科技集团股份有限公司 | | Legal Representative | Pan Anmin | [2. Contact Persons and Information](index=6&type=section&id=2.%20Contact%20Persons%20and%20Information) This section lists contact information for the Board Secretary and Securities Affairs Representative, including addresses, phone numbers, fax, and email Contact Persons and Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Qin Feng | C9-C, Hengtong International Innovation Park, No. 9 Jiuxianqiao North Road, Chaoyang District, Beijing | 010-56478871 | 010-56478000 | bfg@bluefocus.com | | Securities Affairs Representative | Zhang Yuan | C9-C, Hengtong International Innovation Park, No. 9 Jiuxianqiao North Road, Chaoyang District, Beijing | 010-56478871 | 010-56478000 | bfg@bluefocus.com | [3. Other Information](index=6&type=section&id=3.%20Other%20Information) The company's registered address, office address, website, email, information disclosure, and registration status remained unchanged during the reporting period - The company's registered address, office address, website, and email remained unchanged during the reporting period[14](index=14&type=chunk) - Information disclosure and storage locations remained unchanged during the reporting period[15](index=15&type=chunk) - The company's registration status remained unchanged during the reporting period[16](index=16&type=chunk) [4. Key Accounting Data and Financial Indicators](index=7&type=section&id=4.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) The company's operating revenue increased by 4.87% to **32.36 billion yuan**, but net profit attributable to shareholders decreased by **47.33%** to **96.44 million yuan**, with operating cash flow significantly down by **163.49%** Key Accounting Data and Financial Indicators (Current Reporting Period vs. Prior Year Period) | Indicator | Current Reporting Period (yuan) | Prior Year Period (Adjusted) (yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 32,360,261,510.45 | 30,857,874,573.86 | 4.87% | | Net Profit Attributable to Listed Company Shareholders | 96,442,685.39 | 183,122,769.16 | -47.33% | | Net Profit Attributable to Listed Company Shareholders After Non-Recurring Gains and Losses | 130,145,365.30 | 149,944,671.55 | -13.20% | | Net Cash Flow from Operating Activities | -859,337,179.43 | -326,136,802.40 | -163.49% | | Basic Earnings Per Share (yuan/share) | 0.0273 | 0.0526 | -48.10% | | Diluted Earnings Per Share (yuan/share) | 0.0273 | 0.0526 | -48.10% | | Weighted Average Return on Net Assets | 1.26% | 2.37% | -1.11% | | Total Assets | 23,345,078,532.09 | 22,371,124,234.60 | 4.35% | | Net Assets Attributable to Listed Company Shareholders | 7,688,050,402.77 | 7,590,329,971.13 | 1.29% | - The company needed to retrospectively adjust or restate prior year accounting data due to the implementation of capital reserve to share capital conversion after the balance sheet date, recalculating earnings per share[17](index=17&type=chunk) [5. Differences in Accounting Data Under Domestic and International Accounting Standards](index=7&type=section&id=5.%20Differences%20in%20Accounting%20Data%20Under%20Domestic%20and%20International%20Accounting%20Standards) During the reporting period, the company reported no differences in net profit and net assets between international/overseas accounting standards and Chinese accounting standards - The company had no differences in net profit and net assets between financial reports disclosed under international accounting standards and Chinese accounting standards during the reporting period[19](index=19&type=chunk) - The company had no differences in net profit and net assets between financial reports disclosed under overseas accounting standards and Chinese accounting standards during the reporting period[20](index=20&type=chunk) [6. Non-Recurring Gains and Losses Items and Amounts](index=8&type=section&id=6.%20Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) Non-recurring gains and losses totaled **-33.70 million yuan**, primarily due to fair value changes in financial assets and liabilities, and other non-operating income/expenses Non-Recurring Gains and Losses Items and Amounts | Item | Amount (yuan) | | :--- | :--- | | Gains or losses from disposal of non-current assets | 943,317.26 | | Fair value changes and disposal gains/losses from financial assets and liabilities held by non-financial enterprises | -41,162,507.02 | | Other non-operating income and expenses apart from the above | -4,872,826.97 | | Less: Income tax impact | -11,385,500.82 | | Impact on minority interests (after tax) | -3,836.00 | | Total | -33,702,679.91 | - The company had no other profit and loss items that meet the definition of non-recurring gains and losses, nor did it classify non-recurring gains and losses as recurring gains and losses[22](index=22&type=chunk) Section III Management Discussion and Analysis [1. Company's Main Business Activities During the Reporting Period](index=9&type=section&id=1.%20Company%27s%20Main%20Business%20Activities%20During%20the%20Reporting%20Period) BlueFocus, a marketing technology company, deepened its "All in AI" strategy, with main businesses covering integrated promotion, advertising agency, and metaverse-related services, showing strong overseas growth [(I) Overall Development Overview and Business Review](index=9&type=section&id=%28I%29%20Overall%20Development%20Overview%20and%20Business%20Review) The company's business includes integrated promotion, advertising agency, and metaverse services, with double-digit growth in its intelligent marketing platform Luban and overseas business, achieving over **32 billion yuan** in revenue - The company's business segments include integrated promotion services (digital marketing, public relations, event management, etc.), integrated advertising agency (digital advertising placement, overseas advertising agency for Chinese enterprises, etc.), and metaverse-related businesses (virtual humans, virtual objects, virtual spaces, and xR studios)[24](index=24&type=chunk) - The intelligent marketing platform Luban achieved double-digit year-on-year and quarter-on-quarter revenue growth by integrating data resources and building standardized, industry-specific solutions with "data + AI"[27](index=27&type=chunk) - In the first half of 2025, BlueFocus's overseas business achieved double-digit year-on-year and quarter-on-quarter revenue growth, with advertising revenue from major platforms like Meta, Google, and TikTok For Business all showing double-digit growth[28](index=28&type=chunk) 2025 First Half Operating Revenue Composition | Indicator | Amount (billion yuan) | | :--- | :--- | | Total Operating Revenue | >320 | | Overseas Business Revenue | ~270 | [(II) Industry Position](index=9&type=section&id=%28II%29%20Industry%20Position) The company holds a leading industry position, recognized as a "National Key Cultural Export Enterprise" and "National Cultural Industry Demonstration Base," consistently ranking in WARC's Global Top 10 - In May 2025, BlueFocus was recognized by four ministries including the Ministry of Commerce as a "National Key Cultural Export Enterprise," with its Southeast Asia marketing channel construction project designated as a "National Key Cultural Export Project"[31](index=31&type=chunk) - The company has been selected for the Ministry of Culture and Tourism's new batch of "National Cultural Industry Demonstration Bases" and was named among the "Top 30 National Cultural Enterprises" and "234th in China's Top 500 Private Enterprises"[31](index=31&type=chunk) - The company has consistently ranked in WARC's "Global Top 10 Holding Companies" for many years, placing **9th** in the 2025 Effectiveness 100, **10th** in the Creative 100, and **8th** in the Media 100, being the only Chinese enterprise in the global top ten[32](index=32&type=chunk) [(III) Industry Development Trends](index=10&type=section&id=%28III%29%20Industry%20Development%20Trends) The industry benefits from national digital economy and "AI+" strategies, with a significant "going global" trend for Chinese enterprises, and metaverse/AI technologies driving innovation in marketing - National policies emphasize accelerating the development of the digital economy, promoting deep integration of the digital and real economies, and continuously advancing the "AI+" initiative to stimulate digital economic innovation[33](index=33&type=chunk) - Chinese enterprises are shifting from "product going global" to "production capacity going global" and "brand going global," with overseas marketing becoming a crucial way to enhance brand influence and expand international markets[34](index=34&type=chunk)[35](index=35&type=chunk) - The metaverse, an immersive interconnected space where digital and physical worlds converge, is invigorated by breakthroughs in AI technology, driving its transformation from social entertainment to a productivity tool with expanding application scenarios[36](index=36&type=chunk)[37](index=37&type=chunk) [2. Analysis of Core Competencies](index=11&type=section&id=2.%20Analysis%20of%20Core%20Competencies) The company's core strengths include creative and service advantages, strong brand influence, high-quality client resources, technology-driven capabilities (particularly "All in AI" strategy and BlueX platform), economies of scale, and mature management and talent - Adhering to a "content + technology + service" philosophy, the company received **41 industry marketing awards** in intelligent integrated marketing services, including the Kylin Award AIGC Marketing Gold Award and TopDigital Annual AI Innovation Marketing Company[42](index=42&type=chunk)[43](index=43&type=chunk) - Established in 1996, the company is one of China's earliest PR firms, evolving into Asia's top and a global top ten marketing communications group[45](index=45&type=chunk) - The company continuously serves over **3,000 global clients** across eight major industries, including gaming, automotive, internet & applications, and e-commerce, with increasing client stickiness year by year[46](index=46&type=chunk) - The company fully deepened its "All in AI" strategy, driven by an AI technology matrix and global platform construction, with the BlueAI technology matrix incubating **100+ vertical scenario intelligent agents** and the BlueX ad monetization SDK completing basic functionality[48](index=48&type=chunk)[49](index=49&type=chunk) - In the first half of 2025, operating revenue reached **32.36 billion yuan**, with overseas business accounting for over **80%** at **27.005 billion yuan**, leveraging scale advantages to secure optimal media rebates and increased credit lines[50](index=50&type=chunk) - The company boasts a mature management system and an "employee first" corporate culture, achieving rapid business growth while reducing employee numbers and significantly improving per capita efficiency through optimized management and technology investment[51](index=51&type=chunk)[52](index=52&type=chunk) [3. Analysis of Main Business](index=13&type=section&id=3.%20Analysis%20of%20Main%20Business) Main business operating revenue increased by **4.87%**, but net cash flow from operating activities significantly decreased by **163.49%** due to longer collection periods for overseas business compared to media procurement payments Major Financial Data Year-on-Year Changes | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 32,360,261,510.45 | 30,857,874,573.86 | 4.87% | | Operating Cost | 31,443,168,284.36 | 29,942,216,889.12 | 5.01% | | Selling Expenses | 377,464,981.31 | 414,437,830.53 | -8.92% | | Administrative Expenses | 270,826,756.96 | 294,460,904.08 | -8.03% | | R&D Investment | 34,588,967.34 | 26,699,237.36 | 29.55% | | Net Cash Flow from Operating Activities | -859,337,179.43 | -326,136,802.40 | -163.49% | - The decrease in net cash flow from operating activities was primarily due to increased revenue from the company's overseas business, where client collection periods are longer than media procurement payment terms[54](index=54&type=chunk) Products or Services Accounting for Over 10% of Revenue | Product or Service | Operating Revenue (yuan) | Operating Cost (yuan) | Gross Profit Margin | Year-on-Year Change in Operating Revenue | | :--- | :--- | :--- | :--- | :--- | | Overseas Ad Placement | 27,005,270,726.29 | 26,594,235,152.84 | 1.52% | 13.51% | | Integrated Promotion Services | 3,664,313,409.39 | 3,309,818,734.72 | 9.67% | -27.00% | | Integrated Advertising Agency | 1,690,677,374.77 | 1,539,114,396.80 | 8.96% | -17.43% | [4. Analysis of Non-Main Business](index=14&type=section&id=4.%20Analysis%20of%20Non-Main%20Business) Non-main business negatively impacted total profit, primarily due to fair value change losses, credit impairment losses, and non-operating expenses, none of which are sustainable Impact of Non-Main Business on Total Profit | Item | Amount (yuan) | Proportion of Total Profit | Explanation of Cause | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 18,850,665.83 | 14.94% | Dividends from financial assets and interest income from debt investments | No | | Fair Value Change Gains/Losses | -32,154,939.31 | -25.49% | Decrease in fair value of financial assets | No | | Asset Impairment | -185,868.61 | -0.15% | Decrease in digital asset value of overseas subsidiaries, inventory write-downs | No | | Non-Operating Income | 1,476,978.11 | 1.17% | Penalty income, etc. | No | | Non-Operating Expenses | 6,349,805.08 | 5.03% | Public welfare donations, penalties for breach of contract, etc. | No | | Credit Impairment Losses | -79,438,813.06 | -62.98% | Provision for bad debts based on aging and individual assessment | No | | Asset Disposal Gains/Losses | -60,292.18 | -0.05% | Losses from disposal of non-current assets | No | [5. Analysis of Assets and Liabilities](index=15&type=section&id=5.%20Analysis%20of%20Assets%20and%20Liabilities) Total assets increased by **4.35%**, with significant shifts in asset structure, including increased accounts receivable and short-term borrowings, and decreased cash and long-term borrowings Significant Changes in Asset Composition (Current Reporting Period End vs. Prior Year End) | Item | Amount at Current Period End (yuan) | Proportion of Total Assets | Amount at Prior Year End (yuan) | Proportion of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 3,551,715,208.52 | 15.21% | 4,191,949,198.56 | 18.74% | -3.53% | | Accounts Receivable | 12,789,371,762.29 | 54.78% | 11,379,949,576.53 | 50.87% | 3.91% | | Contract Assets | 210,596,877.52 | 0.90% | 120,649,657.76 | 0.54% | 0.36% | | Short-Term Borrowings | 2,036,177,504.65 | 8.72% | 1,328,388,582.96 | 5.94% | 2.78% | | Long-Term Borrowings | 0.00 | 0.00% | 483,676,676.55 | 2.16% | -2.16% | | Prepayments | 462,805,211.29 | 1.98% | 203,815,950.08 | 0.91% | 1.07% | - The increase in short-term borrowings was primarily due to the company reclassifying long-term borrowings to short-term borrowings as per bank agreements and new short-term borrowings at the end of the reporting period[60](index=60&type=chunk) Financial Assets Measured at Fair Value at Period End | Item | Amount at Period End (yuan) | | :--- | :--- | | Trading Financial Assets | 206,635,882.71 | | Other Equity Instrument Investments | 88,602,483.33 | | Other Non-Current Financial Assets | 694,840,628.70 | | Subtotal of Financial Assets | 990,078,994.74 | [6. Analysis of Investment Status](index=16&type=section&id=6.%20Analysis%20of%20Investment%20Status) The company had no significant equity or non-equity investments during the reporting period, with fair value financial assets totaling **214.62 million yuan**, and derivative investments effectively hedging exchange rate risks - The company had no significant equity investments during the reporting period[64](index=64&type=chunk) - The company had no significant non-equity investments during the reporting period[65](index=65&type=chunk) Financial Assets Measured at Fair Value | Asset Category | Amount at Period End (yuan) | Source of Funds | | :--- | :--- | :--- | | Stocks | 8,952,025.57 | Own Funds | | Funds | 191,891,268.55 | Own Funds | | Financial Derivatives | 13,777,693.18 | Own Funds | | Total | 214,620,987.30 | -- | Overview of Wealth Management | Specific Type | Amount of Wealth Management (million yuan) | Unmatured Balance (million yuan) | | :--- | :--- | :--- | | Bank Wealth Management Products | 31,700.00 | 0 | | Brokerage Wealth Management Products | 37,319.13 | 32,380.88 | | Other Categories | 18,159.74 | 18,159.74 | | Total | 87,178.87 | 50,540.62 | - The company's foreign exchange derivative investments for hedging purposes resulted in an actual gain of **3.93 million yuan**, effectively avoiding and reducing operational risks from exchange rate fluctuations[71](index=71&type=chunk) [7. Significant Asset and Equity Sales](index=19&type=section&id=7.%20Significant%20Asset%20and%20Equity%20Sales) The company did not engage in any significant asset or equity sales during the reporting period - The company did not sell significant assets during the reporting period[75](index=75&type=chunk) - The company did not sell significant equity during the reporting period[76](index=76&type=chunk) [8. Analysis of Major Holding and Participating Companies](index=19&type=section&id=8.%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) This section lists financial information for major subsidiaries and associates significantly impacting net profit, along with details of newly established and disposed subsidiaries Major Subsidiary Financial Information (Partial) | Company Name | Company Type | Registered Capital | Total Assets (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | | BlueFocus International Communication Group Co., Ltd. | Subsidiary | 1,723,780,617 HKD | 18,334,427,799.46 | 371,877,737.36 | | BLUEMEDIA PTE. LTD. | Subsidiary | 8,000,000 USD | 11,864,316,351.40 | 68,528,419.09 | | BlueVision Interactive Limited | Subsidiary | 10,000 HKD | 12,014,758,321.97 | 61,535,379.69 | | Madhouse Co. Limited | Subsidiary | 40,012,850 USD | 5,583,833,394.66 | 55,926,201.43 | | Beijing Sienke Technology Co., Ltd. | Subsidiary | 110,212,766.00 | 648,619,732.81 | 45,708,186.47 | Acquisition and Disposal of Subsidiaries During the Reporting Period | Company Name | Method | Impact on Overall Production, Operations, and Performance (yuan) | | :--- | :--- | :--- | | Shanghai BlueFocus Digital Media Technology Co., Ltd. | Newly Established | -65.59 | | PT PMA BLUEMEDIA INDONESIA | Newly Established | - | | Shanghai BlueFocus Intelligent Marketing Group Co., Ltd. | Newly Established | -423.21 | | Shanghai BlueFocus Intelligent Marketing Technology Co., Ltd. | Newly Established | -636,611.84 | | Qingmushanlin (Hong Kong) E-commerce Co., Ltd. | Newly Established | -222.94 | | Beijing Moyin Future Technology Co., Ltd. | Disposed Subsidiary | 22,366.98 | [9. Information on Structured Entities Controlled by the Company](index=20&type=section&id=9.%20Information%20on%20Structured%20Entities%20Controlled%20by%20the%20Company) The company did not control any structured entities during the reporting period - The company had no structured entities under its control during the reporting period[79](index=79&type=chunk) [10. Risks Faced by the Company and Countermeasures](index=20&type=section&id=10.%20Risks%20Faced%20by%20the%20Company%20and%20Countermeasures) The company faces risks from intensified market competition, talent loss, and high goodwill, addressed by enhancing marketing technology, improving talent mechanisms, and strengthening management of acquired subsidiaries - Risk of intensified market competition: The company enhances its marketing technology service capabilities and expands service dimensions to adapt to rapidly developing industry trends[79](index=79&type=chunk) - Risk of talent loss: The company continuously improves its talent acquisition and development mechanisms through collaborations with renowned universities, internal training, and equity incentives[80](index=80&type=chunk) - Risk of high goodwill: The company strengthens operational management and control over acquired subsidiaries, integrates synergistic resources, ensures stable development, and gradually reduces the impact of goodwill on performance[81](index=81&type=chunk) [11. Registration Form for Investor Relations Activities During the Reporting Period](index=20&type=section&id=11.%20Registration%20Form%20for%20Investor%20Relations%20Activities%20During%20the%20Reporting%20Period) On April 25, 2025, the company held a phone conference with analysts and investors to discuss 2024 annual and Q1 2025 performance and business Investor Relations Activities During the Reporting Period | Reception Time | Reception Location | Reception Method | Type of Reception Object | Main Content Discussed and Materials Provided | | :--- | :--- | :--- | :--- | :--- | | April 25, 2025 | Company Board Office | Phone Communication | Institutional and Individual Investors | 2024 Annual and 2025 First Quarter Performance and Business Situation | [12. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan](index=21&type=section&id=12.%20Formulation%20and%20Implementation%20of%20Market%20Value%20Management%20System%20and%20Valuation%20Enhancement%20Plan) The company has formulated and disclosed its "Market Value Management System" but has not yet disclosed a valuation enhancement plan - The company has formulated a market value management system, which was reviewed and approved by the board of directors on April 23, 2025, through the "Proposal on Formulating the Market Value Management System"[83](index=83&type=chunk) - The company has not yet disclosed a valuation enhancement plan[83](index=83&type=chunk) [13. Implementation of the "Dual Improvement in Quality and Returns" Action Plan](index=21&type=section&id=13.%20Implementation%20of%20the%20%22Dual%20Improvement%20in%20Quality%20and%20Returns%22%20Action%20Plan) The company actively implements its "Dual Improvement in Quality and Returns" action plan, focusing on core business, AI innovation, corporate governance, and investor relations, including a capital reserve to share capital conversion - The company has disclosed its "Dual Improvement in Quality and Returns" action plan, primarily focusing on core business, innovation empowerment ("All in AI" strategy), strengthening corporate governance, and improving information disclosure quality[84](index=84&type=chunk) - During the reporting period, the company actively promoted this plan, improving its governance system, optimizing fundamental systems, and deepening internal control and compliance management[85](index=85&type=chunk) - On May 27, 2025, the company disclosed its 2024 annual equity distribution plan, converting capital reserves into share capital at a rate of **4 shares for every 10 shares** held by all shareholders, totaling **1,010,721,493 new shares**[85](index=85&type=chunk) - The company strengthens communication with investors through diverse channels such as performance briefings, interactive platform replies, and investor hotlines[85](index=85&type=chunk) Section IV Corporate Governance, Environment, and Society [1. Changes in Directors, Supervisors, and Senior Management](index=22&type=section&id=1.%20Changes%20in%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, Director Xu Qing resigned, Supervisors Feng Xiao, Zhu Yunyang, and Luo Lu departed, and Independent Director Gang Dongjun was elected Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Xu Qing | Director | Resignation | June 05, 2025 | Personal reasons | | Feng Xiao | Supervisor | Resignation | May 22, 2025 | No longer serving as supervisor due to cancellation of the supervisory board in the Articles of Association | | Zhu Yunyang | Supervisor | Resignation | May 22, 2025 | No longer serving as supervisor due to cancellation of the supervisory board in the Articles of Association | | Luo Lu | Supervisor | Resignation | May 22, 2025 | Job transfer | | Gang Dongjun | Independent Director | Elected | June 23, 2025 | Job transfer | [2. Profit Distribution and Capital Reserve to Share Capital Conversion During the Reporting Period](index=22&type=section&id=2.%20Profit%20Distribution%20and%20Capital%20Reserve%20to%20Share%20Capital%20Conversion%20During%20the%20Reporting%20Period) The company plans no cash dividends, bonus shares, or capital reserve to share capital conversion for the half-year period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period[88](index=88&type=chunk) [3. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures](index=22&type=section&id=3.%20Implementation%20of%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20or%20Other%20Employee%20Incentive%20Measures) The company continued its 2023 restricted stock incentive plan, adjusting prices and quantities, completing the second vesting period for **52.70 million shares**, with some shares forfeited due to departures or unmet performance - On September 7, 2023, the company granted **80 million restricted shares** to **244 incentive recipients** at a grant price of **4.33 yuan/share**[91](index=91&type=chunk) - On August 29, 2024, the company adjusted the restricted stock grant price to **4.32 yuan/share** and completed the vesting registration for **39.265 million shares** in the first vesting period[91](index=91&type=chunk)[93](index=93&type=chunk) - On August 26, 2025, the company again adjusted the restricted stock grant price to **3.09 yuan/share** and completed the vesting for **52.696 million shares** in the second vesting period[94](index=94&type=chunk) - A total of **2.31 million granted but unvested restricted shares** were forfeited due to personal resignations or failure to meet performance assessments[94](index=94&type=chunk) [4. Environmental Information Disclosure](index=23&type=section&id=4.%20Environmental%20Information%20Disclosure) The company and its major subsidiaries were not included in the list of enterprises required to disclose environmental information by law - The listed company and its major subsidiaries were not included in the list of enterprises required to disclose environmental information by law[95](index=95&type=chunk) [5. Social Responsibility](index=23&type=section&id=5.%20Social%20Responsibility) The company promotes green office practices, fulfills environmental responsibilities through energy saving, and prioritizes employees with competitive compensation, talent development, and a healthy work environment, while actively engaging in social welfare - The company effectively reduces carbon emissions by optimizing its environment, improving energy efficiency, and introducing low-carbon technologies, advocating green travel, energy-saving habits, and waste sorting[95](index=95&type=chunk) - The company adheres to an "employee first" core value, offering competitive compensation, company benefits, and a talent development system, while fostering a safe, healthy, and vibrant work environment[96](index=96&type=chunk) - For years, the company has collaborated with public welfare organizations, supporting urban workers, education for migrant children, and rural cultural revitalization through clothing donations and children's book donation programs[97](index=97&type=chunk) Section V Significant Matters [1. Fulfilled and Overdue Unfulfilled Commitments by Actual Controller, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period](index=25&type=section&id=1.%20Fulfilled%20and%20Overdue%20Unfulfilled%20Commitments%20by%20Actual%20Controller%2C%20Shareholders%2C%20Related%20Parties%2C%20Acquirers%2C%20and%20the%20Company%20During%20and%20as%20of%20the%20End%20of%20the%20Reporting%20Period) As of the end of the reporting period, there were no overdue unfulfilled commitments by the company's actual controller, shareholders, related parties, acquirers, or the company - The company had no commitments by its actual controller, shareholders, related parties, acquirers, or the company that were fulfilled during the reporting period or overdue and unfulfilled as of the end of the reporting period[99](index=99&type=chunk) [2. Non-Operating Funds Occupied by Controlling Shareholders and Other Related Parties from the Listed Company](index=25&type=section&id=2.%20Non-Operating%20Funds%20Occupied%20by%20Controlling%20Shareholders%20and%20Other%20Related%20Parties%20from%20the%20Listed%20Company) During the reporting period, there were no non-operating funds occupied by controlling shareholders or other related parties from the listed company - The company had no non-operating funds occupied by controlling shareholders or other related parties from the listed company during the reporting period[100](index=100&type=chunk) [3. Irregular External Guarantees](index=25&type=section&id=3.%20Irregular%20External%20Guarantees) The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[101](index=101&type=chunk) [4. Appointment and Dismissal of Accounting Firms](index=25&type=section&id=4.%20Appointment%20and%20Dismissal%20of%20Accounting%20Firms) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[102](index=102&type=chunk) [5. Board of Directors, Supervisory Board, and Audit Committee's Explanation on the "Non-Standard Audit Report" for the Current Period](index=25&type=section&id=5.%20Board%20of%20Directors%2C%20Supervisory%20Board%2C%20and%20Audit%20Committee%27s%20Explanation%20on%20the%20%22Non-Standard%20Audit%20Report%22%20for%20the%20Current%20Period) This section is not applicable as the company's semi-annual report was not audited [6. Board of Directors' Explanation on the "Non-Standard Audit Report" for the Previous Year](index=25&type=section&id=6.%20Board%20of%20Directors%27%20Explanation%20on%20the%20%22Non-Standard%20Audit%20Report%22%20for%20the%20Previous%20Year) This section is not applicable as the company's semi-annual report was not audited [7. Bankruptcy and Reorganization Matters](index=25&type=section&id=7.%20Bankruptcy%20and%20Reorganization%20Matters) The company did not experience any bankruptcy or reorganization matters during the reporting period - The company did not experience any bankruptcy or reorganization matters during the reporting period[103](index=103&type=chunk) [8. Litigation Matters](index=25&type=section&id=8.%20Litigation%20Matters) The company is involved in a significant arbitration with HNA Culture Holding Group, with confirmed claims of **201.39 million yuan**, and is a plaintiff in **23 other cases** totaling **666.01 million yuan**, and a defendant in **5 cases** totaling **45.17 million yuan** - The company's wholly-owned subsidiary, BlueFocus Unlimited Interconnection (Beijing) Investment Management Co., Ltd., initiated arbitration regarding equity transfer payments and other matters with HNA Culture Holding Group Co., Ltd., with a confirmed claim amount of **201,388,561.57 yuan**[105](index=105&type=chunk) - The company received **67,262.3 yuan** in trust income distribution for 2023 in January 2024, and **67,118.38 yuan** for 2024 on December 26, 2024[105](index=105&type=chunk) Other Litigation and Arbitration Cases | Litigant | Number of Cases | Amount Involved (million yuan) | Progress | Impact on Company Operations | | :--- | :--- | :--- | :--- | :--- | | Company as Plaintiff | 23 | 66,600.81 | 13 cases in progress, 10 cases completed and entered execution/bankruptcy stage | No significant impact | | Company as Defendant | 5 | 4,517.42 | 4 cases in progress, 1 case completed and entered execution/bankruptcy stage | No significant impact | [9. Penalties and Rectification](index=27&type=section&id=9.%20Penalties%20and%20Rectification) The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[108](index=108&type=chunk) [10. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=27&type=section&id=10.%20Integrity%20Status%20of%20the%20Company%2C%20its%20Controlling%20Shareholder%2C%20and%20Actual%20Controller) The integrity status of the company and its largest shareholder remained good during the reporting period - During the reporting period, the integrity status of the company and its largest shareholder remained good[109](index=109&type=chunk) [11. Significant Related Party Transactions](index=27&type=section&id=11.%20Significant%20Related%20Party%20Transactions) The company had no significant related party transactions concerning daily operations, asset/equity acquisitions/disposals, or joint external investments, but did have non-operating related party creditor-debtor relationships - The company had no related party transactions related to daily operations during the reporting period[110](index=110&type=chunk) - The company had no non-operating related party creditor-debtor relationships during the reporting period[113](index=113&type=chunk) - The company had no deposit, loan, credit, or other financial business with related financial companies, nor did financial companies controlled by the company have such business with related parties[114](index=114&type=chunk)[115](index=115&type=chunk) [12. Significant Contracts and Their Performance](index=28&type=section&id=12.%20Significant%20Contracts%20and%20Their%20Performance) No significant impact on profit from custody, contracting, or leasing matters; the company provided joint liability guarantees for subsidiaries totaling **351.21 million yuan**, representing **45.68%** of net assets - The company had no custody or contracting situations during the reporting period[117](index=117&type=chunk)[118](index=118&type=chunk) - The company had no leasing projects that generated profit or loss exceeding **10%** of the company's total profit during the reporting period[119](index=119&type=chunk) Company Guarantees for Subsidiaries (Partial) | Guaranteed Party Name | Guarantee Limit (million yuan) | Actual Guarantee Amount (million yuan) | Guarantee Type | Guarantee Period | | :--- | :--- | :--- | :--- | :--- | | Domob Network Technology (Beijing) Co., Ltd. | 20,000 | 10,000 | Joint and Several Liability Guarantee | 1 year | | BlueFocus International Communication Group Co., Ltd., BlueVision Interactive Limited | 43,000 | 10,737.9 | Joint and Several Liability Guarantee | 1 year | | Shenzhen Xiaosen Huyu Co., Ltd., Tianjin Sienke Technology Co., Ltd., Beijing Zhidian Interactive Advertising Co., Ltd., Beijing Zhidian Interactive Network Technology Co., Ltd. | 230,000 | 70,000 | Joint and Several Liability Guarantee | 3 years | Total Guarantee Amount | Indicator | Amount (million yuan) | | :--- | :--- | | Total Approved Guarantee Amount During Reporting Period | 389,726.88 | | Total Actual Guarantee Amount Incurred During Reporting Period | 275,738.84 | | Total Approved Guarantee Amount at End of Reporting Period | 1,035,322.88 | | Total Actual Guarantee Balance at End of Reporting Period | 351,207.51 | | Proportion of Total Actual Guarantee Amount to Company's Net Assets | 45.68% | [13. Explanation of Other Significant Matters](index=32&type=section&id=13.%20Explanation%20of%20Other%20Significant%20Matters) The company is planning to issue H-shares and list on the Hong Kong Stock Exchange, having submitted its application on June 25, 2025 - The company convened board and shareholder meetings on June 6, 2025, and June 23, 2025, respectively, to review and approve proposals related to the issuance of H-shares and listing on The Stock Exchange of Hong Kong Limited[126](index=126&type=chunk) - The company submitted an application to The Stock Exchange of Hong Kong Limited on June 25, 2025, for the issuance of overseas listed shares (H-shares) and listing on the Main Board of the Hong Kong Stock Exchange[126](index=126&type=chunk) [14. Significant Matters of Company Subsidiaries](index=32&type=section&id=14.%20Significant%20Matters%20of%20Company%20Subsidiaries) There were no significant matters concerning the company's subsidiaries during the reporting period - The company had no significant matters concerning its subsidiaries during the reporting period[127](index=127&type=chunk) Section VI Share Changes and Shareholder Information [1. Share Capital Changes](index=33&type=section&id=1.%20Share%20Capital%20Changes) The company's total share capital increased by **1.01 billion shares** to **3.54 billion shares** due to a capital reserve to share capital conversion, affecting both restricted and unrestricted shares Share Capital Changes (Current Reporting Period) | Share Category | Quantity Before This Change (shares) | Increase/Decrease in This Change (shares) | Quantity After This Change (shares) | | :--- | :--- | :--- | :--- | | I. Restricted Shares | 78,707,817 | 31,483,652.00 | 110,191,469 | | II. Unrestricted Shares | 2,448,095,917 | 979,237,841.00 | 3,427,333,758 | | III. Total Shares | 2,526,803,734 | 1,010,721,493.00 | 3,537,525,227 | - Share capital changes were primarily due to the company's 2024 annual equity distribution, converting capital reserves into share capital at a rate of **4 shares for every 10 shares** held by all shareholders[130](index=130&type=chunk) - The number of restricted shares held by senior management changed due to the resignation of former supervisor Ms. Luo Lu[131](index=131&type=chunk) - The company's 2024 capital reserve to share capital conversion was credited to shareholder securities accounts on June 4, 2025[132](index=132&type=chunk) [2. Securities Issuance and Listing](index=34&type=section&id=2.%20Securities%20Issuance%20and%20Listing) The company had no securities issuance or listing activities during the reporting period - The company had no securities issuance or listing activities during the reporting period[134](index=134&type=chunk) [3. Number of Shareholders and Shareholding Structure](index=34&type=section&id=3.%20Number%20of%20Shareholders%20and%20Shareholding%20Structure) As of the end of the reporting period, the company had **222,887 common shareholders**, with details provided for major shareholders' holdings, including restricted, unrestricted, pledged, marked, or frozen shares - As of the end of the reporting period, the total number of common shareholders was **222,887**[135](index=135&type=chunk) Shareholdings of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Ratio | Number of Shares Held at Period End (shares) | Number of Restricted Shares Held (shares) | Number of Unrestricted Shares Held (shares) | Pledged, Marked, or Frozen Status | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Zhao Wenquan | Domestic Natural Person | 3.96% | 140,000,000 | 105,000,000 | 35,000,000 | Pledged 32,196,561 shares, Frozen 62,999,999 shares | | Lakala Payment Co., Ltd. | Domestic Non-State-Owned Legal Person | 3.93% | 139,012,451 | 0 | 139,012,451 | Not applicable | | Industrial and Commercial Bank of China Co., Ltd. - E Fund ChiNext ETF | Other | 2.50% | 88,544,960 | 0 | 88,544,960 | Not applicable | | Sun Taoran | Domestic Natural Person | 1.56% | 55,101,584 | 0 | 55,101,584 | Pledged 34,238,982 shares | | Agricultural Bank of China Co., Ltd. - CSI 500 ETF | Other | 1.48% | 52,492,432 | 0 | 52,492,432 | Not applicable | - Mr. Zhao Wenquan's frozen shares were all unfrozen on July 2, 2025[136](index=136&type=chunk) [4. Changes in Shareholdings of Directors, Supervisors, and Senior Management](index=36&type=section&id=4.%20Changes%20in%20Shareholdings%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, the shareholdings of some directors, supervisors, and senior management increased due to capital reserve to share capital conversion, with no reductions Changes in Shareholdings of Directors, Supervisors, and Senior Management | Name | Position | Number of Shares at Beginning of Period (shares) | Number of Shares Increased This Period (shares) | Number of Shares at End of Period (shares) | | :--- | :--- | :--- | :--- | :--- | | Zhao Wenquan | Chairman | 100,000,000 | 40,000,000 | 140,000,000 | | Xiong Jian | Vice Chairman, Deputy General Manager | 1,012,970 | 405,188 | 1,418,158 | | Pan Anmin | Director, General Manager | 3,679,290 | 1,471,716 | 5,151,006 | | Chen Jianhong | Director, CFO | 250,000 | 100,000 | 350,000 | | Luo Lu | Supervisor | 1,498 | 599 | 2,097 | - There were no reductions in shareholdings by directors, supervisors, and senior management during this period[138](index=138&type=chunk) [5. Changes in Controlling Shareholder or Actual Controller](index=37&type=section&id=5.%20Changes%20in%20Controlling%20Shareholder%20or%20Actual%20Controller) The company's controlling shareholder and actual controller remained unchanged during the reporting period, maintaining its status as a company without an actual controller - The company's controlling shareholder did not change during the reporting period[139](index=139&type=chunk) - The company's actual controller did not change during the reporting period[139](index=139&type=chunk) - The company's ultimate controlling party is without an actual controller[126](index=126&type=chunk) [6. Preferred Share Information](index=37&type=section&id=6.%20Preferred%20Share%20Information) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[140](index=140&type=chunk) Section VII Bond-Related Information [Bond-Related Information](index=38&type=section&id=Bond-Related%20Information) The company had no bond-related information during the reporting period - The company had no bond-related information during the reporting period[142](index=142&type=chunk) Section VIII Financial Report [1. Audit Report](index=39&type=section&id=1.%20Audit%20Report) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[144](index=144&type=chunk) [2. Financial Statements](index=39&type=section&id=2.%20Financial%20Statements) This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, presenting the financial position, operating results, and cash flows [1. Consolidated Balance Sheet](index=39&type=section&id=1.%20Consolidated%20Balance%20Sheet) As of the end of the reporting period, the company's consolidated total assets were **23.35 billion yuan**, with total current assets of **17.67 billion yuan**, total liabilities of **15.67 billion yuan**, and total owners' equity of **7.68 billion yuan** Consolidated Balance Sheet Key Data (Period-End Balance) | Item | Amount (yuan) | | :--- | :--- | | Total Assets | 23,345,078,532.09 | | Total Current Assets | 17,667,179,155.55 | | Total Non-Current Assets | 5,677,899,376.54 | | Total Liabilities | 15,665,931,050.20 | | Total Current Liabilities | 15,392,993,823.66 | | Total Non-Current Liabilities | 272,937,226.54 | | Total Owners' Equity | 7,679,147,481.89 | | Total Owners' Equity Attributable to Parent Company | 7,688,050,402.77 | [2. Parent Company Balance Sheet](index=41&type=section&id=2.%20Parent%20Company%20Balance%20Sheet) As of the end of the reporting period, the parent company's total assets were **9.96 billion yuan**, with total current assets of **1.42 billion yuan**, total liabilities of **1.51 billion yuan**, and total owners' equity of **8.45 billion yuan** Parent Company Balance Sheet Key Data (Period-End Balance) | Item | Amount (yuan) | | :--- | :--- | | Total Assets | 9,958,258,270.49 | | Total Current Assets | 1,415,385,225.07 | | Total Non-Current Assets | 8,542,873,045.42 | | Total Liabilities | 1,508,837,663.11 | | Total Current Liabilities | 1,378,051,673.92 | | Total Non-Current Liabilities | 130,785,989.19 | | Total Owners' Equity | 8,449,420,607.38 | [3. Consolidated Income Statement](index=43&type=section&id=3.%20Consolidated%20Income%20Statement) During the reporting period, the company's consolidated total operating revenue was **32.36 billion yuan**, net profit was **94.83 million yuan**, and net profit attributable to parent company shareholders was **96.44 million yuan**, a **47.33%** year-on-year decrease Consolidated Income Statement Key Data (Current Reporting Period) | Item | Amount (yuan) | | :--- | :--- | | Total Operating Revenue | 32,360,261,510.45 | | Total Operating Costs | 32,152,462,749.44 | | Operating Profit | 131,015,772.96 | | Total Profit | 126,142,945.99 | | Net Profit | 94,825,014.41 | | Net Profit Attributable to Parent Company Shareholders | 96,442,685.39 | | Minority Interest Income/Loss | -1,617,670.98 | | Total Comprehensive Income | 67,434,218.10 | | Basic Earnings Per Share | 0.0273 | | Diluted Earnings Per Share | 0.0273 | [4. Parent Company Income Statement](index=45&type=section&id=4.%20Parent%20Company%20Income%20Statement) During the reporting period, the parent company's operating revenue was **291.84 million yuan**, net profit was **-45.55 million yuan**, and total comprehensive income was **-68.62 million yuan** Parent Company Income Statement Key Data (Current Reporting Period) | Item | Amount (yuan) | | :--- | :--- | | Operating Revenue | 291,835,562.26 | | Operating Profit | -58,059,132.46 | | Total Profit | -62,179,408.68 | | Net Profit | -45,551,348.21 | | Total Comprehensive Income | -68,617,669.06 | [5. Consolidated Cash Flow Statement](index=47&type=section&id=5.%20Consolidated%20Cash%20Flow%20Statement) During the reporting period, consolidated net cash flow from operating activities was **-859.34 million yuan**, from investing activities was **93.67 million yuan**, and from financing activities was **134.28 million yuan**, resulting in a net decrease of **643.93 million yuan** in cash and cash equivalents Consolidated Cash Flow Statement Key Data (Current Reporting Period) | Item | Amount (yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | -859,337,179.43 | | Net Cash Flow from Investing Activities | 93,666,754.65 | | Net Cash Flow from Financing Activities | 134,279,276.71 | | Effect of Exchange Rate Changes on Cash and Cash Equivalents | -12,536,499.52 | | Net Increase in Cash and Cash Equivalents | -643,927,647.59 | | Cash and Cash Equivalents at End of Period | 3,498,053,918.83 | [6. Parent Company Cash Flow Statement](index=48&type=section&id=6.%20Parent%20Company%20Cash%20Flow%20Statement) During the reporting period, parent company net cash flow from operating activities was **-414.40 million yuan**, from investing activities was **80.89 million yuan**, and from financing activities was **165.16 million yuan**, resulting in a net decrease of **168.37 million yuan** in cash and cash equivalents Parent Company Cash Flow Statement Key Data (Current Reporting Period) | Item | Amount (yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | -414,402,595.61 | | Net Cash Flow from Investing Activities | 80,891,717.78 | | Net Cash Flow from Financing Activities | 165,155,336.25 | | Effect of Exchange Rate Changes on Cash and Cash Equivalents | -14,382.81 | | Net Increase in Cash and Cash Equivalents | -168,369,924.39 | | Cash and Cash Equivalents at End of Period | 129,819,101.78 | [7. Consolidated Statement of Changes in Owners' Equity](index=49&type=section&id=7.%20Consolidated%20Statement%20of%20Changes%20in%20Owners%27%20Equity) During the reporting period, consolidated owners' equity increased by **96.33 million yuan**, primarily due to a **1.01 billion yuan** increase in share capital and a **982 million yuan** decrease in capital reserves Consolidated Statement of Changes in Owners' Equity (Current Reporting Period) | Item | Balance at Beginning of Period (yuan) | Change Amount This Period (yuan) | Balance at End of Period (yuan) | | :--- | :--- | :--- | :--- | | Share Capital | 2,526,803,734.00 | 1,010,721,493.00 | 3,537,525,227.00 | | Capital Reserves | 3,825,109,940.89 | -981,825,265.25 | 2,843,284,675.64 | | Other Comprehensive Income | -205,733,844.31 | -27,333,573.11 | -233,067,417.42 | | Retained Earnings | 1,082,050,900.10 | 96,157,777.00 | 1,178,208,677.10 | | Total Owners' Equity Attributable to Parent Company | 7,590,329,971.13 | 97,720,431.64 | 7,688,050,402.77 | | Minority Interests | -7,512,935.09 | -1,389,985.79 | -8,902,920.88 | | Total Owners' Equity | 7,582,817,036.04 | 96,330,445.85 | 7,679,147,481.89 | [8. Parent Company Statement of Changes in Owners' Equity](index=53&type=section&id=8.%20Parent%20Company%20Statement%20of%20Changes%20in%20Owners%27%20Equity) During the reporting period, parent company owners' equity decreased by **32.69 million yuan**, primarily due to a **1.01 billion yuan** increase in share capital and a **975 million yuan** decrease in capital reserves Parent Company Statement of Changes in Owners' Equity (Current Reporting Period) | Item | Balance at Beginning of Period (yuan) | Change Amount This Period (yuan) | Balance at End of Period (yuan) | | :--- | :--- | :--- | :--- | | Share Capital | 2,526,803,734.00 | 1,010,721,493.00 | 3,537,525,227.00 | | Capital Reserves | 5,855,199,790.62 | -974,794,698.85 | 4,880,405,091.77 | | Other Comprehensive Income | -200,961,819.57 | -23,066,320.85 | -224,028,140.42 | | Retained Earnings | -61,029,463.21 | -45,551,348.21 | -106,580,811.42 | | Total Owners' Equity | 8,482,111,482.29 | -32,690,874.91 | 8,449,420,607.38 | [3. Company Basic Information](index=57&type=section&id=3.%20Company%20Basic%20Information) The company, established on November 4, 2002, with a registered capital of **3.54 billion yuan**, primarily provides marketing technology services globally, including integrated promotion, advertising agency, and metaverse-related businesses - Beijing BlueFocus Intelligent Marketing Group Co., Ltd. was established on November 4, 2002, with a registered capital of **3,537,525,227 yuan**[180](index=180&type=chunk)[181](index=181&type=chunk) - The company operates in the other information dissemination services industry, with a business scope covering integrated promotion services, integrated advertising agency, and metaverse-related businesses[182](index=182&type=chunk) - This financial report was approved for issuance by the company's board of directors on August 26, 2025[183](index=183&type=chunk) [4. Basis of Preparation of Financial Statements](index=58&type=section&id=4.%20Basis%20of%20Preparation%20of%20Financial%20Statements) The financial statements are prepared on a going concern basis, in accordance with enterprise accounting standards and significant accounting policies and estimates, based on actual transactions - These financial statements are prepared on a going concern basis, in accordance with relevant provisions of enterprise accounting standards, based on actual transactions[186](index=186&type=chunk) - There are no factors that significantly affect the company's ability to continue as a going concern for at least **12 months** from the end of the reporting period[187](index=187&type=chunk) [5. Significant Accounting Policies and Estimates](index=58&type=section&id=5.%20Significant%20Accounting%20Policies%20and%20Estimates) This section details the company's adherence to enterprise accounting standards, accounting periods, operating cycles, functional currency, and significant accounting policies and estimates for business combinations, financial instruments, receivables, inventory, intangible assets, and revenue recognition - The company adheres to the latest enterprise accounting standards, their application guidelines, interpretations, and other relevant regulations issued by the Ministry of Finance[188](index=188&type=chunk) - The company uses **12 months** as its normal operating cycle and as the standard for classifying assets and liabilities as current or non-current[190](index=190&type=chunk) - The company classifies financial assets based on the business model for managing financial assets and the cash flow characteristics of the financial assets, into those measured at amortized cost, at fair value through other comprehensive income, and at fair value through profit or loss[209](index=209&type=chunk) - For accounts receivable that do not contain a significant financing component, the company adopts a simplified model for expected credit losses, always measuring loss provisions at an amount equal to the expected credit losses over the entire lifetime[225](index=225&type=chunk) - The company recognizes revenue when it has satisfied a performance obligation in the contract, i.e., when the customer obtains control of the related goods or services[292](index=292&type=chunk) [6. Taxation](index=80&type=section&id=6.%20Taxation) This section lists the company's main tax categories and rates, detailing corporate income tax preferential policies enjoyed by subsidiaries, including those for western development, Qianhai, high-tech enterprises, and small and micro-enterprises Main Tax Categories and Rates | Tax Category | Tax Rate | | :--- | :--- | | Value-Added Tax | 13%, 11%, 9%, 8%, 7%, 6% | | Urban Maintenance and Construction Tax | 7% or 5% or 1% | | Corporate Income Tax | 25%, 22%, 21%, 20%, 17%, 16.5%, 15%, 10% | | Education Surcharge | 3% | | Local Education Surcharge | 2% | - The company's subsidiaries, Tibet Shannan Oriental Bojie Advertising Co., Ltd. and Shannan BlueFocus Digital Marketing Co., Ltd., enjoy the Western Development policy, with corporate income tax levied at a reduced rate of **15%**[322](index=322&type=chunk) - The company's subsidiaries, Shenzhen BlueFocus Interactive Marketing Co., Ltd., etc., enjoy the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone policy, with corporate income tax levied at a rate of **15%**[322](index=322&type=chunk) - The company's subsidiaries, Beijing BlueFocus Digital Media Co., Ltd. and Blue Universe Digital Technology Co., Ltd., have obtained high-tech enterprise certificates, with corporate income tax levied at a reduced rate of **15%**[322](index=322&type=chunk) - Some of the company's subsidiaries meet the criteria for small and micro-profit enterprises, enjoying a corporate income tax reduction where taxable income is calculated at **25%** and paid at a **20%** rate[322](index=322&type=chunk) [7. Notes to Consolidated Financial Statement Items](index=82&type=section&id=7.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section provides detailed notes for consolidated financial statement items, including cash, accounts receivable, inventory, long-term equity investments, fixed assets, intangible assets, goodwill, short-term borrowings, accounts payable, employee compensation, and taxes payable Cash and Cash Equivalents at Period End | Item | Amount at Period End (yuan) | | :--- | :--- | | Cash on Hand | 39,447.51 | | Bank Deposits | 3,551,075,761.01 | | Other Cash and Cash Equivalents | 600,000.00 | | Total | 3,551,715,208.52 | | Of which: Total Amount of Funds Deposited Overseas | 2,723,262,459.36 | | Restricted Funds at Period End (e.g., pledged, frozen) | 53,661,289.69 | Accounts Receivable at Period End and Bad Debt Provisions | Category | Book Balance (yuan) | Bad Debt Provision (yuan) | Book Value (yuan) | | :--- | :--- | :--- | :--- | | Accounts Receivable for which Bad Debt Provision is Individually Provided | 656,837,593.06 | 637,385,602.65 | 19,451,990.41 | | Accounts Receivable for which Bad Debt Provision is Provided by Portfolio | 13,022,462,087.68 | 252,542,315.80 | 12,769,919,771.88 | | Total | 13,679,299,680.74 | 889,927,918.45 | 12,789,371,762.29 | Goodwill Original Book Value and Impairment Provisions (Period-End Balance) | Name of Investee or Goodwill-Generating Event | Original Book Value (yuan) | Impairment Provision (yuan) | | :--- | :--- | :--- | | Digital Advertising | 919,785,451.77 | 919,785,451.77 | | Integrated Marketing | 508,893,654.35 | 98,987,598.27 | | Madhouse Inc. | 384,861,214.56 | 86,432,426.35 | | Mobile Media | 1,448,273,019.51 | 400,417,283.83 | | Beijing Jiebao Data Technology Co., Ltd. | 14,256,023.16 | 14,256,023.16 | | Total | 3,276,069,363.35 | 1,519,878,783.38 | Short-Term Borrowings Classification (Period-End Balance) | Item | Amount (yuan) | | :--- | :--- | | Secured Borrowings | 404,940,360.98 | | Guaranteed Borrowings | 1,627,537,143.67 | | Credit Borrowings | 3,700,000.00 | | Total | 2,036,177,504.65 | Accounts Payable (Period-End Balance) | Item | Amount (yuan) | | :--- | :--- | | Payables to Suppliers | 11,951,386,001.37 | | Total | 11,951,386,001.37 | [8. Research and Development Expenses](index=117&type=section&id=8.%20Research%20and%20Development%20Expenses) During the reporting period, total R&D expenses were **34.59 million yuan**, primarily consisting of technical personnel costs, all expensed R&D Expense Composition | Item | Amount Incurred This Period (yuan) | | :--- | :--- | | Technical Personnel Expenses | 24,929,565.29 | | Intangible Asset Amortization | 612,176.04 | | Other | 9,047,226.01 | | Total | 34,588,967.34 | | Of which: Expensed R&D Expenses | 34,588,967.34 | [9. Changes in Consolidation Scope](index=117&type=section&id=9.%20Changes%20in%20Consolidation%20Scope) During the reporting period, the company disposed of Beijing Moyin Future Technology Co., Ltd. and established five new companies, including Shanghai BlueFocus Digital Media Technology Co., Ltd., resulting in changes to the consolidation scope - This period, the company disposed of its subsidiary Beijing Moyin Future Technology Co., Ltd., losing control[506](index=506&type=chunk) Newly Established Companies This Period | Company Name | Net Assets at Period End (yuan) | Net Profit This Period (yuan) | | :--- | :--- | :--- | | Shanghai BlueFocus Digital Media Technology Co., Ltd. | -65.59 | -65.59 | | Shanghai BlueFocus Intelligent Marketing Group Co., Ltd. | -2,423.21 | -423.21 | | Shanghai BlueFocus Intelligent Marketing Technology Co., Ltd. | -636,611.84 | -636,611.84 | | Qingmushanlin (Hong Kong) E-commerce Co., Ltd. | -221.77 | -222.94 | | PT PMA BLUEMEDIA INDONESIA | - | - | [10. Interests in Other Entities](index=118&type=section&id=10.%20Interests%20in%20Other%20Entities) This section discloses the company's group structure, including registered capital and shareholding ratios of major subsidiaries, and key financial information for significant associates like Plus Company International Holding Limited Enterprise Group Composition (Partial Subsidiaries) | Subsidiary Name | Registered Capital | Shareholding Ratio (Direct) | | :--- | :--- | :--- | | BlueFocus International Communication Group Co., Ltd. | 1,723,780,617.46 HKD | 100.00% | | Shanghai BlueFocus Investment Management (Group) Co., Ltd. | 820,000,000.00 yuan | 100.00% | | Blue Universe Digital Technology Co., Ltd. | 150,000,000.00 yuan | 100.00% | - The company holds **49.00%** equity in BLUE MEDIA TH CO., LTD, but exercises control based on its articles of association and investment agreement, thus included in the consolidation scope[509](index=509&type=chunk) - The company holds a **50.00%** profit-sharing right in Newport Blue Impact, LP based on its capital contribution, but the general partner has control, so the company, as a limited partner, does not exercise control and accounts for it using the equity method[510](index=510&type=chunk) Key Financial Information of Significant Associate (Plus Company International Holding) | Item | Amount at Period End/Amount Incurred This Period (yuan) | | :--- | :--- | | Total Assets | 4,884,928,419.60 | | Total Liabilities | 3,732,859,128.60 | | Owners' Equity Attributable to Parent Company | 1,120,349,534.40 | | Operating Revenue | 623,887,698.10 | | Net Profit | -50,775,636.00 | | Total Comprehensive Income | 27,210,152.40 | [11. Government Grants](index=121&type=section&id=11.%20Government%20Grants) As of the end of the reporting period, the balance of government grants in deferred income was **450,500 yuan**, with **16.21 million yuan** recognized as other income during the period Liability Items Involving Government Grants | Accounting Account | Balance at Beginning of Period (yuan) | New Grant Amount This Period (yuan) | Balance at End of Period (yuan) | Related to Assets/Income | | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 227,400.00 | 223,100.00 | 450,500.00 | Related to Income | Government Grants Recognized in Current Profit or Loss | Accounting Account | Amount Incurred This Period (yuan) | | :--- | :--- | | Other Income | 16,206,259.28 | | Non-Operating Income | 0.00 | [12. Risks Related to Financial Instruments](index=121&type=section&id=12.%20Risks%20Related%20to%20Financial%20Instruments) The company manages credit, liquidity, and market risks (interest rate, exchange rate) through credit reviews, continuous monitoring of receivables, liquidity planning, and forward foreign exchange contracts - The company's credit risk primarily arises from bank deposits, accounts receivable, other receivables, and notes receivable, managed through transactions with reputable third parties and continuous monitoring of accounts receivable balances[525](index=525&type=chunk)[526](index=526&type=chunk) - The company manages cash shortage risk through a revolving liquidity planning tool and maintains financing continuity and flexibility using various financing methods such as bank loans and other interest-bearing borrowings[527](index=527&type=chunk) - The interest rate risk faced by the company primarily stems from long-term borrowings and bonds payable, mitigated by issuing lower fixed-rate short-term financing bills to avoid the impact of rising interest rates on costs[530](index=530&type=chunk

Core Viewpoint - The company reported a revenue of 32.36 billion yuan for the first half of 2025, reflecting a year-on-year growth of 4.87%, while net profit decreased by 47.33% to 96.44 million yuan. The company has decided not to distribute cash dividends, issue bonus shares, or increase capital from reserves [1]. Financial Performance - Revenue for the first half of 2025 reached 32.36 billion yuan, marking a 4.87% increase compared to the previous year [1]. - Net profit for the same period was 96.44 million yuan, which represents a significant decline of 47.33% year-on-year [1]. Dividend Policy - The company announced that it will not distribute cash dividends, issue bonus shares, or convert reserves into additional shares [1].

Core Concept - Generative Engine Optimization (GEO) is emerging as a key strategy in digital marketing, replacing traditional Search Engine Optimization (SEO) as companies seek to optimize traffic and exposure in the age of AI search products like ChatGPT and Bard [1][2]. Understanding GEO - GEO involves optimizing technology, content structure, and data semantics to ensure brands, products, or content are prioritized in AI search and recommendation engines. It focuses on making brands a part of the AI recognition system rather than just improving search rankings [2][3]. Implementation of GEO - Companies must define their goals for GEO, such as increasing brand awareness or market share, and develop comprehensive strategies tailored to their target audience and AI platforms [3][4]. Content Optimization - Structured content is crucial for GEO, requiring logical organization and machine-friendly characteristics to enhance AI parsing efficiency. Content should be clear, concise, and data-driven to maximize its value [4][5]. - The DSS principle (Depth, Support, Source) should guide content creation, ensuring comprehensive answers with authoritative data and expert opinions to enhance credibility [4][5]. - Utilizing multimodal content, including images and videos, can improve content diversity and help AI better understand brand information [4][5]. Technical Adaptation and Tools - Companies should leverage AI tools for content creation and optimization, utilizing specialized GEO tools to enhance efficiency [5][6]. - Understanding AI model mechanisms is essential for converting brand information into structured data formats that AI can accurately read and comprehend [5][6]. Continuous Monitoring and Optimization - GEO optimization requires ongoing monitoring of data feedback to adjust strategies based on algorithm changes, user needs, and competitor dynamics [6]. Leading Companies in GEO Optimization in Zhejiang - Hangzhou Pinsu Gongying Technology Co., Ltd. specializes in comprehensive online brand services, offering personalized content marketing strategies and a one-stop solution for brand exposure [7]. - Liulingwu Culture stands out with unique creative content that enhances brand storytelling and media outreach, focusing on tailored media release strategies [8]. - Hangzhou Yunxi Information Technology Co., Ltd. provides professional GEO optimization services, utilizing advanced technology and a deep understanding of AI platform algorithms [9]. - BlueFocus Communication Group leverages extensive resources to offer comprehensive digital marketing solutions, integrating GEO optimization into their services [10]. - Pinsu Public Relations Team excels in enhancing brand image through public relations strategies, supporting GEO optimization efforts [11]. Future Trends in GEO Industry - The continuous upgrade and integration of AI technology will require GEO optimization to adapt to advancements in natural language processing and knowledge graph construction [12][13]. - Future GEO strategies will need to encompass cross-platform and omnichannel optimization to ensure consistent brand representation across various AI search scenarios [13][14]. - Data-driven approaches will become increasingly important, allowing companies to refine their GEO strategies based on user behavior and market trends while ensuring data privacy [14][15]. - High-quality and innovative content will remain the core competitive advantage in GEO, necessitating investment in unique brand narratives and content systems [15].

Core Viewpoint - The establishment of the BlueFocus Group's headquarters in the Guangdong-Hong Kong-Macao Greater Bay Area signifies the growing interest of global advertising giants in the Qianhai region, which is becoming a hub for the advertising industry with significant revenue growth and a diverse business ecosystem [1][3]. Group 1: Company Developments - BlueFocus Group has set up its Greater Bay Area headquarters in Qianhai, leveraging the region's vast market and favorable business environment [3]. - The company reported a revenue of 60.797 billion yuan in 2024, ranking 279th on the Fortune China 500 list, an increase of 41 places from the previous year [3]. - BlueFocus is pursuing a dual listing on the Hong Kong Stock Exchange, aiming for an "A+H" listing [3]. Group 2: Industry Trends - Qianhai has attracted major global advertising firms, including Publicis Groupe and Omnicom Group, indicating a robust growth trajectory in the advertising sector [1][4]. - The advertising service industry in Qianhai has seen 56 "four-up" enterprises generating a total revenue of 27.497 billion yuan in the first half of the year, reflecting a year-on-year growth of 25.98% [1]. - The region's advertising industry now accounts for over 40% of the revenue of the city's large-scale advertising enterprises, showcasing a significant concentration of industry players [1]. Group 3: Market Environment - The favorable business environment in Qianhai, characterized by strong government support and a vibrant service sector, has fostered innovation and collaboration among advertising companies [4][5]. - Qianhai is actively working to create an internationally influential advertising industry belt, focusing on attracting top global advertising firms and enhancing service levels [5]. - The region's unique characteristics, including its modern and international appeal, are being leveraged to establish a competitive advertising ecosystem [5].

Group 1 - The advertising and marketing sector increased by 1.02% on August 22, with Zhidu Co., Ltd. leading the gains [1] - The Shanghai Composite Index closed at 3825.76, up 1.45%, while the Shenzhen Component Index closed at 12166.06, up 2.07% [1] - Major stocks in the advertising and marketing sector showed significant price increases, with Zhidu Co., Ltd. rising by 10.01% to a closing price of 10.88 [1] Group 2 - The net inflow of main funds in the advertising and marketing sector was 799 million yuan, while retail investors experienced a net outflow of 530 million yuan [1] - The trading volume and turnover for key stocks in the sector were notable, with BlueFocus Communication Group achieving a turnover of 2.08 billion yuan [1]

Group 1: Market Performance - The advertising marketing sector increased by 1.14% on August 19, with Zhidu Co., Ltd. leading the gains [1] - The Shanghai Composite Index closed at 3727.29, down 0.02%, while the Shenzhen Component Index closed at 11821.63, down 0.12% [1] Group 2: Individual Stock Performance - Zhidu Co., Ltd. (code: 000676) closed at 9.62, up 5.25% with a trading volume of 1.5688 million shares and a transaction value of 15 million yuan [1] - Yidian Tianxia (code: 301171) closed at 33.42, up 4.44% with a trading volume of 745,400 shares and a transaction value of 2.488 billion yuan [1] - ST United (code: 600358) closed at 5.95, up 3.66% with a trading volume of 231,100 shares and a transaction value of 13.5 million yuan [1] Group 3: Capital Flow Analysis - The advertising marketing sector saw a net inflow of 103 million yuan from institutional investors, while retail investors contributed a net inflow of 201 million yuan [2] - The sector experienced a net outflow of 305 million yuan from speculative funds [2] Group 4: Detailed Capital Flow for Key Stocks - Zhidu Co., Ltd. had a net inflow of 254 million yuan from institutional investors, while speculative funds saw a net outflow of 134 million yuan [3] - Yidian Tianxia experienced a net inflow of 238 million yuan from institutional investors, with a net outflow of 61.855 million yuan from speculative funds [3] - Fenzhong Media (code: 002027) had a net inflow of 55.9769 million yuan from institutional investors, while speculative funds had a net outflow of 30.0524 million yuan [3]

证券之星消息，8月18日广告营销板块较上一交易日上涨1.31%，因赛集团领涨。当日上证指数报收于 3728.03，上涨0.85%。深证成指报收于11835.57，上涨1.73%。广告营销板块个股涨跌见下表： | 代码 | 名称 | 收盘价 | 涨跌幅 | 成交量(手) | 成交额(元) | | | --- | --- | --- | --- | --- | --- | --- | | 300781 | 因塞集团 | 44.65 | 5.56% | 16.91万 | | 7.47 亿 | | 002354 | 天娱数科 | 7.87 | 5.35% | 279.53万 | | 21.77亿 | | 002264 | 新华都 | 6.98 | 3.87% | 46.85万 | | 3.24亿 | | 300058 | 蓝色光标 | 7.19 | 3.60% | 348.74万 | | 24.92亿 | | 002291 | 遥望科技 | 6.70 | 3.40% | 59.77万 | | 266.6 | | 600556 | 天下秀 | 5.24 | 3.35% | 98.52万 | | 5.12亿 | | 60 ...