Core Viewpoint - China Software International (00354) maintains its earnings forecast for this year but raises the earnings per share (EPS) estimates for 2026 and 2027 by 5% and 6% respectively, reflecting accelerated AI revenue growth and increased penetration of the HarmonyOS IoT nationwide [1] Group 1: Earnings Forecast and Valuation - The target price for China Software International has been raised from HKD 5.6 to HKD 7.6 based on a 20x price-to-earnings ratio for 2026 [1] - The company reported strong performance in the first half of the year, with revenue and gross margin meeting expectations, while operating profit margin and net profit exceeded expectations with year-on-year increases [1] Group 2: Management Outlook - Management is optimistic about revenue growth from full-scenario AI business in the next two years, driven by open-source HarmonyOS IoT, AI agents, and ERP business [1] - It is anticipated that by 2026, the revenue contribution from related businesses will reach approximately 20% [1] - The management also expects a continued recovery in demand for its core IT outsourcing business in the second half of the year [1]

Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [1][9] Core Viewpoints - The company has been selected as a city partner for the construction of the Harmony ecosystem in Xi'an, collaborating with various industry partners to create a leading smart transportation ecosystem [2][3] - The company's all-scenario AI business has seen significant growth, with revenue reaching 656 million yuan in the first half of 2025, representing a year-on-year increase of 130% [2][6] - The company maintains its profit forecast, expecting revenues of 18.881 billion, 21.071 billion, and 23.467 billion yuan for 2025, 2026, and 2027 respectively, with corresponding net profits of 693 million, 914 million, and 1.045 billion yuan [2][9] Summary by Sections Company Overview - The company has been appointed as the leading unit for the smart transportation field in Xi'an, working with multiple partners to implement a full-chain approach in consulting, planning, design, products, solutions, and industry [2][3] AI Business Growth - The all-scenario AI business has become a new growth engine for the company, with a structured 4E AI system that includes various product families and industry applications, contributing to significant revenue growth [6][9] Financial Forecast - The company forecasts revenue growth rates of 11.4%, 11.6%, and 11.4% for the years 2025, 2026, and 2027, with a corresponding price-to-earnings ratio of 24, 18, and 16 times [2][9]

Core Viewpoint - China Software International (00354) reported a slight revenue miss of 2.8% compared to expectations, while net profit met forecasts. AI-related business revenue now accounts for 7.7% of total revenue [1] Group 1: Financial Performance - Revenue for the first half of the year was slightly below expectations by 2.8% [1] - Net profit aligned with the expectations set by analysts [1] - AI-related business revenue has reached 7.7% of total revenue, indicating a growing focus on this segment [1] Group 2: Business Outlook - The recovery in IT outsourcing business is expected to support the company's future prospects, which are seen as better than in previous years [1] - Despite ongoing pressure on gross margins, the company is implementing strict cost control measures, leading to a more noticeable improvement in net profit margins [1] Group 3: Analyst Recommendations - The target price has been slightly adjusted from HKD 7.1 to HKD 7.5 [1] - The analyst maintains a "outperform" rating for the stock [1]

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公佈的內 容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公 佈全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 CHINASOFT INTERNATIONAL LIMITED 中軟國際有限公司 * （於開曼群島註冊成立之有限公司） （股份代號：354） 自願性公告 中軟國際當選西安智慧交通領域 開源鴻蒙創新應用 此次當選揭榜牽頭單位，是西安市對公司在開源鴻蒙領域技術實力與生態構建能 力的高度認可。中軟國際將以西安項目為契機，充分發揮在開源鴻蒙技術創新、 智能終端適配、行業解決方案落地等方面的經驗優勢，聯動產業鏈夥伴，加速開 源鴻蒙+開源芯片組成的「雙開源」根技術基座和開源鴻蒙創新應用的規模化落地， 為西安打造全國智慧交通創新試點、實現「以技術適配帶動產業升級、以場景落 地激活生態價值」體系化設計貢獻力量。 承董事會命 中軟國際有限公司 主席兼首席執行官 陳宇紅博士 香港，二零二五年八月二十七日 於本公佈刊發日期，董事會包括三名執行董事，即陳宇紅博士（主席兼首席執行 官）、何 寧 博 士（副 主 席）及 ...

Group 1 - China Software International reported a mid-term revenue of RMB 8.507 billion, representing a year-on-year growth of 7.3% [1] - The company's net profit attributable to shareholders was RMB 316 million, an increase of 10.4% year-on-year [1] - The AI business experienced significant growth, generating revenue of RMB 656 million, a staggering increase of 130% year-on-year, becoming the main driver of the company's performance [1] Group 2 - The company's foundational business remains stable, providing a solid basis for the overall performance recovery [1] - On August 25, Huawei's HarmonyOS 5 devices exceeded 12 million units, showcasing the rapid adoption of the operating system [1] - The launch of new models by Hongmeng Zhixing at the Chengdu event indicates that smart cars are becoming a new traffic entry point [1]

[Interim Results Summary](index=1&type=section&id=%E6%A6%82%E8%A6%81) This section presents a high-level overview of the Group's financial performance and key operational highlights for the six months ended June 30, 2025 [Results for the Six Months Ended June 30, 2025](index=1&type=section&id=%E6%88%AA%E8%87%B3%E4%BA%8C%E9%9B%B6%E4%BA%94%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E6%A5%AD%E7%B8%BE) Soft International Limited achieved RMB 8.507 billion in revenue, a 7.3% year-on-year increase, with profit attributable to owners growing by 10.4% and basic earnings per share by 15.6% | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 8,506,642 | 7,926,183 | 7.3% | | Service Revenue | 8,248,232 | 7,647,920 | 7.8% | | Profit Before Tax | 348,946 | 295,834 | 18.0% | | Profit for the Period | 315,031 | 285,353 | 10.4% | | Profit Attributable to Owners of the Company | 315,563 | 285,720 | 10.4% | | Basic EPS (RMB cents) | 12.64 | 10.93 | 15.6% | - The Board **does not recommend** an interim dividend for the six months ended June 30, 2025[3](index=3&type=chunk) [Management Discussion and Analysis](index=2&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section provides a detailed analysis of the Group's operational performance, financial results, and strategic initiatives during the reporting period [Key Operating Data](index=2&type=section&id=%E4%B8%BB%E8%A6%81%E9%81%8B%E7%87%9F%E8%B3%87%E6%96%99) The Group's business returned to growth in the first half of 2025, with revenue, service revenue, profit for the period, and basic earnings per share all increasing year-on-year - The Group's business returned to growth, with revenue increasing by **7.3%** year-on-year and service revenue by **7.8%**[4](index=4&type=chunk) - Profit for the period and profit attributable to owners of the Group both increased by **10.4%** year-on-year[4](index=4&type=chunk) - Basic earnings per share increased by **15.6%** year-on-year[4](index=4&type=chunk) | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 8,506,642 | 7,926,183 | 7.3% | | Service Revenue | 8,248,232 | 7,647,920 | 7.8% | | Profit for the Period | 315,031 | 285,353 | 10.4% | | Profit Attributable to Owners of the Group | 315,563 | 285,720 | 10.4% | | Basic EPS (cents) | 12.64 | 10.93 | 15.6% | [Overall Review](index=3&type=section&id=%E7%B8%BD%E9%AB%94%E6%A6%82%E8%BF%B0) The company is advancing its full-scenario AI strategy, achieving a 130% revenue surge in AI business, and making significant progress in KaihongOS, R1-AgentDIM, and cloud computing - The company is steadfastly advancing its full-scenario AI strategy, focusing on "1+3" core tracks, with cloud intelligence and computing power as the foundation, synergizing three major business segments: Harmony AIoT and Digital Twin, Intelligent Agent and Model Factory Services, and ERP Consulting Implementation and Digital Transformation Services[6](index=6&type=chunk) - Full-scenario AI business achieved revenue of **RMB 656 million**, a year-on-year surge of **130%**, becoming the core engine driving the company's performance growth[6](index=6&type=chunk) - KaihongOS, the world's first open-source HarmonyOS system meeting microsecond-level hard real-time requirements, obtained Level 4 security certification from the Ministry of Public Security and, in collaboration with DeepKaihong, released the world's first distributed heterogeneous multi-machine collaborative robot operating system, M-Robots OS[7](index=7&type=chunk) - The R1-AgentDIM Platform and R1-DMP Data Management Platform were launched, with over **300 AI assistant projects** implemented across manufacturing, healthcare, finance, and energy sectors, and more than **50 large model collaboration projects** with Huawei[8](index=8&type=chunk) - The company continues to lead the Huawei Cloud ecosystem, maintaining the top position in business scale and ecosystem share, building a complete service system of "cloud sales - cloud services - AI enablement," and actively participating in computing center construction, helping clients improve AI inference efficiency by **15%**[10](index=10&type=chunk) - Since its listing in 2003, revenue has achieved a compound annual growth rate of **24.6%**, and service revenue a compound annual growth rate of **30.8%**[11](index=11&type=chunk) [Customers](index=6&type=section&id=%E5%AE%A2%E6%88%B6) The Group serves a global customer base, with significant achievements in Greater China, Asia Pacific, and the Middle East, and a high concentration of service revenue from top clients - Customers are located globally, with significant achievements in Greater China, Asia Pacific, and the Middle East[13](index=13&type=chunk) - The company has long-standing relationships with numerous renowned domestic and international large enterprise clients, including Huawei, HSBC, Honor, Tencent, Alibaba, Ping An, China Mobile, China Telecom, Bank of Communications, China National Petroleum Corporation, CNOOC, and State Grid[13](index=13&type=chunk) | Indicator | 2025 H1 | | :--- | :--- | | Top 5 Customers' Service Revenue Share | 57.3% | | Top 10 Customers' Service Revenue Share | 65.0% | | Number of Major Customers with Service Revenue > RMB 6 million | 191 | [Markets](index=6&type=section&id=%E5%B8%82%E5%A0%B4) The Group focuses on industry-specific AI solutions based on HarmonyOS, expanding domestically in developed regions and internationally in Asia Pacific and the Middle East - The company focuses on industries such as power, finance, government, transportation, public utilities, and enterprise manufacturing, creating industry-specific scenario solutions based on the HarmonyOS ecosystem and AI technology[14](index=14&type=chunk) - The domestic market strategy emphasizes economically developed regions like the Greater Bay Area, Yangtze River Delta, and Beijing-Tianjin-Hebei, as well as central and western hub regions, deeply cultivating key cities[14](index=14&type=chunk) - The overseas market uses Hong Kong as a strategic hub, driven by a "technology export + ecosystem localization" dual-wheel model, to build a global service system covering the Asia Pacific and Middle East regions, with progress in projects like the Kai Tak Sports Park in Hong Kong and NEOM in Saudi Arabia[14](index=14&type=chunk) [Human Resources](index=7&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90) The Group's total headcount increased by 7.7% to 75,249 employees by June 30, 2025, driven by business recovery and rapid expansion of full-scenario AI operations | Indicator | June 30, 2025 | June 30, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Employees | 75,249 persons | 69,898 persons | 7.7% | - Employee growth primarily stemmed from increased demand for human resource support due to the steady recovery of cornerstone businesses and the rapid expansion of full-scenario AI businesses, which led to a surge in demand for specialized talent[15](index=15&type=chunk) [Operating Results](index=8&type=section&id=%E7%B6%93%E7%87%9F%E6%A5%AD%E7%B8%BE) This section details the Group's operating results for the first half of 2025, highlighting revenue, gross profit, expenses, and profit performance, driven by full-scenario AI business and efficiency improvements | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 8,506,642 | 7,926,183 | 7.3% | | Service Revenue | 8,248,232 | 7,647,920 | 7.8% | | Gross Profit | 1,874,898 | 1,831,400 | 2.4% | | Profit Before Tax | 348,946 | 295,834 | 18.0% | | Profit for the Period | 315,031 | 285,353 | 10.4% | | Profit Attributable to Owners of the Group | 315,563 | 285,720 | 10.4% | | Basic EPS (cents) | 12.64 | 10.93 | 15.6% | | Adjusted Profit | 277,093 | 247,534 | 11.9% | [Revenue](index=9&type=section&id=%E6%94%B6%E5%85%A5) In the first half of 2025, total revenue grew by 7.3% to RMB 8.507 billion, with service revenue up 7.8%, and full-scenario AI business revenue surging by 130% to RMB 656 million | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 8,506,642 | 7,926,183 | 7.3% | | Service Revenue | 8,248,232 | 7,647,920 | 7.8% | | Full-Scenario AI Business Revenue | 656,000 | 285,217 (estimated) | 130% | - Full-scenario AI business emerged as a new growth engine, achieving revenue of approximately **RMB 656 million**, a significant year-on-year increase of **130%**[19](index=19&type=chunk) [Gross Profit](index=9&type=section&id=%E6%AF%9B%E5%88%A9) Gross profit increased by 2.4% to RMB 1.875 billion, though the overall gross profit margin decreased by 1.1% to 22.0% due to client price reductions, partially offset by AI business growth | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 1,874,898 | 1,831,400 | 2.4% | | Overall Gross Profit Margin | 22.0% | 23.1% | -1.1% | | Gross Profit as % of Service Revenue | 22.7% | 23.9% | -1.2% | - The decline in gross profit margin was primarily due to price reductions from some of the Group's major clients, but the increase in the proportion of full-scenario AI business and the application of AI programming tools in projects effectively drove a quarter-on-quarter gross profit margin rebound of **0.8%** (compared to 21.2% in 2024 H2)[20](index=20&type=chunk) - Future efforts will focus on continuously increasing the proportion of full-scenario AI products and services business and improving delivery efficiency (through AI tool application) to enhance the overall gross profit margin[20](index=20&type=chunk) [Operating Expenses](index=10&type=section&id=%E7%B6%93%E7%87%9F%E8%B2%BB%E7%94%A8) Sales and distribution costs slightly increased by 0.1%, while administrative expenses grew by 0.5%, with both expense ratios decreasing due to optimized resource allocation and AI tool applications | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Sales and Distribution Costs | 426,462 | 425,950 | 0.1% | | Sales and Distribution Costs as % of Revenue | 5.0% | 5.4% | -0.4% | | Administrative Expenses | 1,118,980 | 1,113,278 | 0.5% | | Administrative Expenses as % of Revenue | 13.2% | 14.0% | -0.8% | - The company developed an AI sales assistant through the R1-AgentDIM platform, enhancing sales personnel efficiency and controlling the need for additional sales staff despite revenue growth[21](index=21&type=chunk) - By strengthening budget management and applying self-developed AI tools for recruitment and operations, the company significantly improved the management efficiency of its recruitment and operations departments, reducing the administrative expense ratio[21](index=21&type=chunk) [Other Income](index=10&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Other income increased by 3.5% to RMB 97.907 million, primarily driven by higher government grants, despite a reduction in interest income | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Other Income | 97,907 | 94,577 | 3.5% | - The increase was primarily due to a year-on-year increase in government grants, partially offset by a decrease in interest income[22](index=22&type=chunk) [Other Gains or Losses](index=10&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E6%88%96%E8%99%A7%E6%90%8D) Other gains decreased by 18.2% to RMB 85.785 million, mainly due to the absence of investment gains from the disposal of equity interests recorded in the prior year | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Other Gains or Losses | 85,785 | 104,890 | -18.2% | - The decrease was primarily due to the recognition of investment gains from the disposal of equity interests in certain associate companies in 2024, with no similar transactions occurring in the current reporting period[23](index=23&type=chunk) [Finance Costs and Income Tax](index=11&type=section&id=%E8%B2%A1%E5%8B%99%E8%B2%BB%E7%94%A8%E5%92%8C%E6%89%80%E5%BE%97%E7%A8%85) Finance costs decreased by 38.6% to RMB 61.329 million, while income tax expense surged by 223.6% to RMB 33.915 million, with the effective tax rate rising to 9.7% | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 61,329 | 99,837 | -38.6% | | Income Tax Expense | 33,915 | 10,481 | 223.6% | | Effective Tax Rate | 9.7% | 3.5% | +6.2% | - The decrease in finance costs was mainly due to reduced interest expenses on syndicated loans and a one-off expense incurred in the first half of 2024 from early repayment of syndicated loans[24](index=24&type=chunk) - The increase in income tax was primarily due to the prior year's corporate income tax reconciliation and the recognition of deferred income tax expense from fair value changes of financial assets measured at fair value[24](index=24&type=chunk) [Other Non-Cash Expenses](index=11&type=section&id=%E5%85%B6%E4%BB%96%E9%9D%9E%E7%8F%BE%E9%87%91%E9%96%8B%E6%94%AF) Other expenses increased by 17.3% to RMB 52.363 million, and impairment losses under expected credit loss model rose by 23.0% to RMB 19.017 million, both maintaining similar proportions to revenue | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Other Expenses | 52,363 | 44,638 | 17.3% | | Impairment Losses under Expected Credit Loss Model | 19,017 | 15,455 | 23.0% | - The proportion of other expenses and impairment losses under the expected credit loss model to revenue remained consistent with the prior year[25](index=25&type=chunk) [Liquidity, Financial and Capital Resources](index=11&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) As of June 30, 2025, the Group's available cash balance was RMB 2.937 billion, with net current assets of RMB 7.471 billion and a current ratio of 2.3, while the net gearing ratio turned positive at 12.8% | Indicator | 2025 H1 (RMB thousand) | 2024 Year-end (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Available Cash Balance | 2,936,842 | 4,747,142 | Decrease | | Net Current Assets | 7,470,686 | 6,687,092 | Increase | | Current Ratio | 2.3 | 2.1 | +0.2 | | Total Borrowings | 4,436,629 | 4,416,097 | Slight Increase | | Net Gearing Ratio | 12.8% | Negative | Turned Positive | [Profit for the Period and Earnings Per Share](index=12&type=section&id=%E6%9C%AC%E6%9C%9F%E6%BA%A2%E5%88%A9%E5%92%8C%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Profit for the period increased by 10.4% to RMB 315.031 million, with profit attributable to owners also up 10.4%, and basic earnings per share growing by 15.6% to RMB 0.1264 | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the Period | 315,031 | 285,353 | 10.4% | | Profit Attributable to Owners of the Group | 315,563 | 285,720 | 10.4% | | Basic EPS (RMB cents) | 12.64 | 10.93 | 15.6% | - Profit growth was primarily attributable to the initial success of the Group's AI transformation in enhancing quality and efficiency during the reporting period[27](index=27&type=chunk) - The increase in basic earnings per share was due to the company's focus on shareholder returns through share repurchases and cancellations[27](index=27&type=chunk) [Adjusted Profit](index=13&type=section&id=%E7%B6%93%E8%AA%BF%E6%95%B4%E6%BA%A2%E5%88%A9) Adjusted profit increased by 11.9% to RMB 277.093 million, with the adjusted profit margin rising by 0.2% to 3.3%, reflecting enhanced profitability from strategic initiatives | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Adjusted Profit | 277,093 | 247,534 | 11.9% | | Adjusted Profit Margin (as % of Revenue) | 3.3% | 3.1% | +0.2% | | Adjusted Profit Margin (as % of Service Revenue) | 3.4% | 3.2% | +0.2% | - The company achieved a significant improvement in profitability through proactive strategic planning, precise implementation, and a series of initiatives to enhance quality and efficiency[28](index=28&type=chunk) [Fundraising Activities](index=14&type=section&id=%E9%9B%86%E8%B3%87%E6%B4%BB%E5%8B%95) The Group undertook no new fundraising activities during the period, with approximately HKD 394 million from the 2021 placement allocated for HarmonyOS and OpenHarmony development expected to be utilized by December 31, 2025 - The Group did not undertake any fundraising activities during the current year or the prior year[29](index=29&type=chunk) | Net Proceeds Allocation (HKD) | Intended Use of Proceeds | Actual Use of Proceeds | Balance as of June 30, 2025 (HKD) | Expected Utilization Time | | :--- | :--- | :--- | :--- | :--- | | Approx. 788 million | R&D of full-stack cloud intelligent products and solutions, and investments/M&A related to the company's core business | Approx. HKD 788 million used for R&D of full-stack cloud intelligent products and solutions, and investments/M&A related to the company's core business | — | — | | Approx. 788 million | Building HarmonyOS, OpenHarmony software and hardware products and solutions, R&D of full-stack technology for atomic services, and investments/M&A around the HarmonyOS and OpenHarmony industry ecosystem | Approx. HKD 394 million used for building HarmonyOS, OpenHarmony software and hardware products and solutions, R&D of full-stack technology for atomic services, and investments/M&A around the HarmonyOS and OpenHarmony industry ecosystem | Approx. HKD 394 million | Before December 31, 2025 | | Approx. 394 million | General working capital of the company | Approx. HKD 394 million used for general working capital of the company | — | — | [Interim Financial Statements](index=15&type=section&id=%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE) This section presents the unaudited interim financial statements, including the comprehensive income statement, statement of financial position, statement of changes in equity, and cash flow statement [Unaudited Condensed Consolidated Statement of Comprehensive Income](index=15&type=section&id=%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8%EF%BC%88%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%EF%BC%89) The unaudited consolidated statement of comprehensive income shows year-on-year growth in revenue, gross profit, profit for the period, and EPS, with exchange differences turning from loss to gain | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 8,506,642 | 7,926,183 | | Cost of Sales and Services | (6,631,744) | (6,094,783) | | Gross Profit | 1,874,898 | 1,831,400 | | Other Income | 97,907 | 94,577 | | Other Gains or Losses | 85,785 | 104,890 | | Sales and Distribution Costs | (426,462) | (425,950) | | Other Expenses | (52,363) | (44,638) | | Administrative Expenses | (1,118,980) | (1,113,278) | | Finance Costs | (61,329) | (99,837) | | Profit Before Tax | 348,946 | 295,834 | | Income Tax Expense | (33,915) | (10,481) | | Profit for the Period | 315,031 | 285,353 | | Exchange Differences Arising from Translation of Foreign Operations | 9,056 | (2,420) | | Total Comprehensive Income for the Period | 324,087 | 282,933 | | Basic EPS (cents) | 12.64 | 10.93 | | Diluted EPS (cents) | 12.05 | 10.56 | [Unaudited Condensed Consolidated Statement of Financial Position](index=17&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8%EF%BC%88%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%EF%BC%89) The unaudited consolidated statement of financial position indicates a slight decrease in non-current assets, changes in current assets and liabilities, and an increase in net current assets and total equity | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Non-Current Assets** | | | | Property, Plant and Equipment | 1,409,375 | 1,341,755 | | Intangible Assets | 382,518 | 377,431 | | Goodwill | 843,654 | 843,654 | | Fixed Deposits | 760,000 | 1,384,000 | | **Current Assets** | | | | Trade and Other Receivables | 7,968,818 | 6,458,917 | | Contract Assets | 2,174,950 | 2,292,057 | | Bank Balances and Cash | 1,290,856 | 3,130,989 | | **Current Liabilities** | | | | Trade and Other Payables | 1,845,267 | 1,976,013 | | Borrowings | 3,599,918 | 3,640,752 | | Net Current Assets | 7,470,686 | 6,687,092 | | **Total Equity** | 11,733,041 | 11,438,494 | [Unaudited Condensed Consolidated Statement of Changes in Equity](index=19&type=section&id=%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8%EF%BC%88%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%EF%BC%89) The unaudited consolidated statement of changes in equity outlines movements in equity for the six months ended June 30, 2025, including profit for the period, other comprehensive income, and share-based payments | Equity Item | June 30, 2025 (RMB thousand) | January 1, 2024 (RMB thousand) | | :--- | :--- | :--- | | Share Capital | 123,434 | 133,029 | | Share Premium | 4,296,705 | 5,474,719 | | Treasury Shares | (864,400) | (1,114,363) | | Accumulated Profits | 7,589,312 | 6,743,079 | | Total Equity Attributable to Owners of the Company | 11,711,054 | 11,742,461 | | Non-Controlling Interests | 21,987 | 24,299 | | Total Equity | 11,733,041 | 11,766,760 | | Profit for the Period | 315,031 | 285,353 | | Other Comprehensive Income for the Period | 9,056 | (2,420) | | Equity-Settled Share-Based Payment Expenses Recognized | 92,656 | 107,861 | | Dividends Paid to Ordinary Shareholders | (122,196) | (190,683) | [Unaudited Condensed Consolidated Statement of Cash Flows](index=20&type=section&id=%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8%EF%BC%88%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%EF%BC%89) The unaudited consolidated statement of cash flows shows increased cash used in operating activities, decreased cash used in investing activities, and reduced cash generated from financing activities, leading to a net decrease in cash and cash equivalents | Cash Flow Category | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (990,209) | (686,433) | | Net Cash Used in Investing Activities | (653,449) | (910,800) | | Net Cash Generated from Financing Activities | (191,291) | (332,717) | | Net Decrease in Cash and Cash Equivalents | (1,834,949) | (1,929,950) | | Cash and Cash Equivalents at End of Period | 1,290,856 | 1,841,571 | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=21&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed notes and explanations supporting the unaudited condensed consolidated financial statements, covering general information, accounting policies, and specific financial items [1. General Information](index=21&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) Soft International Limited, incorporated in Cayman Islands in 2000 and listed on HKEX, primarily provides IT solution, outsourcing, and training services, with financial statements presented in RMB - The Company was incorporated in the Cayman Islands on February 16, 2000, listed on the GEM Board of The Stock Exchange of Hong Kong Limited on June 20, 2003, and transferred to the Main Board on December 29, 2008[37](index=37&type=chunk) - The principal activities of the Group are the development and provision of information technology solution services, information technology outsourcing services, and training services[38](index=38&type=chunk) - The consolidated financial statements are presented in RMB[38](index=38&type=chunk) [2. Basis of Presentation](index=21&type=section&id=2.%20%E5%91%88%E5%A0%B1%E5%9F%BA%E6%BA%96) The unaudited condensed consolidated financial statements are prepared in accordance with HKAS 34 'Interim Financial Reporting' and applicable HKEX Listing Rules disclosure requirements - The condensed consolidated financial statements are prepared in accordance with the applicable disclosure requirements of Appendix D2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[39](index=39&type=chunk) [3. Principal Accounting Policies](index=21&type=section&id=3.%20%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The condensed consolidated financial statements are prepared on a historical cost basis, consistent with 2024 policies, with no significant impact from new HKAS adoption in 2025 - The condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value[40](index=40&type=chunk) - The adoption of the amendment to HKAS 21 "Lack of Exchangeability" had no significant impact on the Group's unaudited condensed consolidated financial statements[41](index=41&type=chunk) [4. Revenue and Segment Information](index=22&type=section&id=4.%20%E6%94%B6%E5%85%A5%E5%8F%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group's revenue primarily derives from services and product sales, with a single operating segment due to the integrated assessment of business performance under the full-scenario AI strategy | Nature of Goods and Services | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Project-based Development Services | 914,902 | 1,125,174 | | Outsourcing Services | 7,238,584 | 6,418,172 | | Other Services | 94,746 | 104,574 | | Sales of Software and Hardware Products | 258,410 | 278,263 | | Total Revenue | 8,506,642 | 7,926,183 | - The Group has only one operating segment and is not required to provide any segment information, as it has reshaped its organizational structure and evaluates business performance as an integrated business[43](index=43&type=chunk) [5. Finance Costs](index=23&type=section&id=5.%20%E8%B2%A1%E5%8B%99%E8%B2%BB%E7%94%A8) The Group's finance costs for the first half of 2025 totaled RMB 61.329 million, primarily comprising interest on borrowings and lease liabilities, showing a decrease from the prior year | Finance Cost Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Interest on Borrowings | 58,420 | 96,377 | | Interest on Lease Liabilities | 2,910 | 3,460 | | Total | 61,329 | 99,837 | [6. Taxation](index=23&type=section&id=6.%20%E7%A8%85%E9%A0%85) The Group's tax expense for the first half of 2025 was RMB 33.915 million, mainly including PRC corporate income tax, other taxes, and deferred tax, representing a significant increase year-on-year | Tax Expense Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | PRC Corporate Income Tax | 21,450 | 8,281 | | Others | 3,495 | 2,200 | | Deferred Tax | 8,970 | – | | Total | 33,915 | 10,481 | [7. Dividends](index=23&type=section&id=7.%20%E8%82%A1%E6%81%AF) The company declared a final dividend of HKD 0.0533 per ordinary share for 2024, but the Board resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Company declared a final dividend of **HKD 0.0533 per ordinary share** for the year ended December 31, 2024, payable on June 23, 2025, from the share premium account[45](index=45&type=chunk) - The Board resolved **not to declare** an interim dividend for the six months ended June 30, 2025[46](index=46&type=chunk) [8. Earnings Per Share](index=24&type=section&id=8.%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) This note provides data for calculating basic and diluted earnings per share attributable to ordinary equity holders, with basic EPS at RMB 0.1264 and diluted EPS at RMB 0.1205 for the first half of 2025 | Indicator | 2025 H1 (RMB thousand/Number of Shares) | 2024 H1 (RMB thousand/Number of Shares) | | :--- | :--- | :--- | | Profit for Calculating Basic and Diluted EPS | 315,563 | 285,720 | | Weighted Average Number of Ordinary Shares for Basic EPS | 2,497,482,058 | 2,614,104,739 | | Potentially Dilutive Ordinary Shares (Share Award Scheme) | 120,893,564 | 92,010,310 | | Weighted Average Number of Ordinary Shares for Diluted EPS | 2,618,375,622 | 2,706,115,049 | [9. Trade and Other Receivables](index=24&type=section&id=9.%20%E8%B2%A3%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E8%B3%87%E6%AC%BE) As of June 30, 2025, total trade and other receivables amounted to RMB 7.971 billion, with trade receivables (net of allowance) at RMB 7.131 billion, and credit terms ranging from 30 to 180 days | Receivables Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables (net of allowance) | 7,130,716 | 5,998,723 | | Advances to Suppliers | 488,169 | 205,284 | | Deposits, Prepayments and Other Receivables (net of allowance) | 352,343 | 260,494 | | Total | 7,971,228 | 6,464,501 | | Trade Receivables Aging Analysis | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 90 days | 4,726,848 | 4,243,934 | | Between 91 and 180 days | 813,408 | 711,423 | | Between 181 and 365 days | 1,026,989 | 647,626 | | Between 1 and 2 years | 563,471 | 395,740 | | Total | 7,130,716 | 5,998,723 | - The Group's credit period ranges from **30 to 180 days**, and it assesses the credit quality of potential customers and determines credit limits for each customer[49](index=49&type=chunk) [10. Trade and Other Payables](index=25&type=section&id=10.%20%E8%B2%A3%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E8%B3%87%E6%AC%BE) As of June 30, 2025, total trade and other payables were RMB 1.845 billion, with an average credit period of 90 days for purchases, and the Group maintains financial risk management policies | Payables Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Payables | 802,186 | 930,191 | | Other Payables | 1,043,081 | 1,045,822 | | Total | 1,845,267 | 1,976,013 | | Trade Payables Aging Analysis | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 90 days | 174,710 | 520,624 | | Between 91 and 180 days | 96,424 | 111,743 | | Between 181 and 365 days | 315,028 | 126,724 | | Between 1 and 2 years | 84,020 | 77,046 | | Over 2 years | 132,004 | 94,054 | | Total | 802,186 | 930,191 | - The average credit period for purchases of goods is **90 days**, and the Group has established financial risk management policies to ensure sufficient working capital to settle debts as they fall due[50](index=50&type=chunk) [11. Borrowings](index=26&type=section&id=11.%20%E5%80%9F%E8%B2%B8) As of June 30, 2025, total borrowings amounted to RMB 4.437 billion, comprising unsecured and secured bank loans, subject to financial covenants which the Group has complied with | Borrowing Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Unsecured Bank Loans | 3,924,616 | 3,979,365 | | Secured Bank Loans | 512,013 | 436,732 | | Total Borrowings | 4,436,629 | 4,416,097 | | Repayable within One Year | 3,599,918 | 3,640,752 | | Amount Classified as Non-Current Liabilities | 836,711 | 775,345 | - The Group is subject to financial covenants to maintain consolidated tangible net worth of **not less than RMB 3.8 billion** and other ratio requirements, which the Group has complied with during the reporting period[54](index=54&type=chunk) - Floating rate borrowings bear interest at rates published by the People's Bank of China, with an average annual interest rate of **1.40%** (2024: 1.89%), while fixed rate borrowings bear interest at annual rates ranging from **1.15% to 2.60%**[54](index=54&type=chunk) [12. Share Capital](index=27&type=section&id=12.%20%E8%82%A1%E6%9C%AC) As of June 30, 2025, the company's authorized share capital was HKD 200 million, with issued and fully paid share capital of 2,732,079,358 shares, valued at RMB 123.434 million, reduced due to share cancellations | Share Capital Item | Number of Shares | Par Value (HKD) | Amount in Financial Statements (RMB thousand) | | :--- | :--- | :--- | :--- | | Authorized Share Capital | 4,000,000,000 | 200,000,000 | - | | Issued and Fully Paid as at January 1, 2024 | 2,943,299,358 | 147,164,969 | 133,029 | | Shares Cancelled | (133,546,000) | (6,677,300) | (6,057) | | Issued and Fully Paid as at June 30, 2025 | 2,732,079,358 | 136,603,969 | 123,434 | [13. Capital Commitments](index=28&type=section&id=13.%20%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of June 30, 2025, capital expenditures contracted but not provided for totaled RMB 381.020 million, primarily for property, plant, and equipment construction, with further commitments for investments in entities | Capital Commitment Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Acquisition of Property, Plant and Equipment | 5,237 | 17,058 | | Construction of Property, Plant and Equipment | 375,783 | 438,150 | | Total Capital Expenditure Contracted but Not Provided For | 381,020 | 455,208 | | Commitments for Further Capital Contributions to Investment Entities | 248,008 | 269,767 | [14. Related Party Transactions](index=29&type=section&id=14.%20%E9%97%9C%E9%80%A3%E4%BA%BA%E5%A3%AB%E4%BA%A4%E6%98%93) The Group engaged in IT outsourcing, IT solution, and other service transactions with related parties during the first half of 2025, which the directors consider to be on normal commercial terms | Type of Transaction | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | IT Outsourcing Services Provided by the Group | 19,589 | 4,604 | | IT Solution Services Provided by the Group | 2,712 | 2,388 | | Other Services Provided by the Group | 424 | 1,801 | - The Directors believe that the above transactions were conducted on **normal commercial terms** in the ordinary course of the Company's business[56](index=56&type=chunk) [15. Employees and Other Information](index=29&type=section&id=15.%20%E5%83%B1%E5%93%A1%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) Employee remuneration for the first half of 2025 was approximately RMB 7.011 billion, including directors' emoluments, with intangible asset amortization and depreciation expenses also reported | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Employee Remuneration | 7,010,805 | 6,526,599 | | Directors' Emoluments (included in Employee Remuneration) | 18,437 | 22,389 | | Amortization Expense of Intangible Assets | 52,363 | 44,638 | | Depreciation | 101,796 | 130,436 | [Corporate Governance and Other Information](index=30&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section covers the company's corporate governance practices, directors' securities transactions, share interests, share incentive schemes, and major shareholders [Code on Corporate Governance Practices](index=30&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F%E5%AE%88%E5%89%87) The company generally complied with the Corporate Governance Code, with deviations noted regarding independent non-executive directors' attendance at AGM and the combined roles of Chairman and CEO - The Company has complied with the Corporate Governance Code as set out in Appendix C1 to the Listing Rules, with two deviations noted[58](index=58&type=chunk) - Three independent non-executive directors and two non-executive directors were **unable to attend** the Annual General Meeting held on May 20, 2025, deviating from Code Provision C.1.6[58](index=58&type=chunk) - Dr. Chen Yuhong holds both the roles of Chairman and Chief Executive Officer, deviating from Code Provision C.2.1, an arrangement the Board believes is **beneficial to the Group's business prospects**[59](index=59&type=chunk) [Directors' Securities Transactions](index=31&type=section&id=%E8%91%A3%E4%BA%8B%E4%B9%8B%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93) The company adopted the Model Code for Securities Transactions by Directors, and all directors confirmed full compliance for the year ended June 30, 2025 - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules as its code of conduct for directors' securities transactions[60](index=60&type=chunk) - All Directors confirmed their **full compliance** with the required standards set out in the Model Code for Securities Transactions by Directors for the year ended June 30, 2025[60](index=60&type=chunk) [Directors' Interests in Shares](index=31&type=section&id=%E8%91%A3%E4%BA%8B%E6%96%BC%E8%82%A1%E4%BB%BD%E4%B9%8B%E6%AC%8A%E7%9B%8A) As of June 30, 2025, several directors held long positions in the company's shares, including Dr. Chen Yuhong, Dr. He Ning, Dr. Tang Zhenming, Dr. Zhang Yaqin, and Mr. Yang Debin, partly from vested share awards | Name | Capacity | Number of Issued Ordinary Shares Held | Approximate Percentage of Total Issued Share Capital | | :--- | :--- | :--- | :--- | | Chen Yuhong | Beneficial owner, interest through controlled corporation, founder of discretionary trust and beneficiary of trust | 315,488,861 | 11.55% | | He Ning | Beneficial owner and beneficiary of trust | 6,000,000 | 0.22% | | Tang Zhenming | Beneficial owner and beneficiary of trust | 24,891,765 | 0.91% | | Zhang Yaqin | Beneficial owner | 250,000 | 0.01% | | Yang Debin | Beneficial owner and beneficiary of trust | 1,000,000 | 0.04% | - Dr. Chen Yuhong had **1,650,000 awarded shares** vested and transferred in April 2025 during the reporting period[65](index=65&type=chunk) - Dr. Tang Zhenming had **576,000 awarded shares** vested and transferred in April 2025 during the reporting period[65](index=65&type=chunk) [Share Incentive Scheme](index=33&type=section&id=%E8%82%A1%E4%BB%BD%E6%BF%80%E5%8B%B5%E8%A8%88%E5%88%83) The company's 2018 Share Award Scheme aims to recognize employee contributions and retain talent, with 27.008 million and 142.380 million awarded shares from 2020 and 2023 respectively remaining unvested as of June 30, 2025 - The Share Award Scheme aims to recognize employees' contributions and provide incentives for them to remain with the Group for its continued operation and development, as well as to attract suitable personnel to drive the Group's further growth[66](index=66&type=chunk) - As of June 30, 2025, **27,008,000 awarded shares** granted on June 1, 2020, remained unvested, representing **0.99%** of the Company's issued share capital[67](index=67&type=chunk) - As of June 30, 2025, **142,380,000 awarded shares** granted on August 30, 2023, remained unvested, representing **5.21%** of the Company's issued share capital[67](index=67&type=chunk) - As of June 30, 2025, **230,662,326 shares** of the Company were held by the independent trustee of the Share Award Scheme, representing **8.44%** of the Company's issued ordinary shares[70](index=70&type=chunk) [Directors' Rights to Acquire Shares](index=35&type=section&id=%E8%91%A3%E4%BA%8B%E6%94%B6%E8%B3%BC%E8%82%A1%E4%BB%BD%E4%B9%8B%E6%AC%8A%E5%88%A9) For the six months ended June 30, 2025, no directors were granted any options to subscribe for company shares, nor did any directors possess any rights to acquire company shares, other than those disclosed - For the six months ended June 30, 2025, **no options** to subscribe for shares of the Company were granted to any Directors, other than those disclosed above[71](index=71&type=chunk) - As of June 30, 2025, **no Directors possessed any rights** to subscribe for shares of the Company, other than those disclosed above[71](index=71&type=chunk) [Required Standard of Securities Transactions by Directors](index=35&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E4%B9%8B%E8%A6%8F%E5%AE%9A%E6%A8%99%E6%BA%96) The company adopted a code of conduct for directors' securities transactions no less exacting than the Model Code, and all directors confirmed compliance for the year ended June 30, 2025 - The Company has adopted a code of conduct for directors' securities transactions with terms **no less exacting** than the required standard of dealings set out in the Model Code for Securities Transactions by Directors[72](index=72&type=chunk) - Following specific enquiries of all Directors, the Directors have **complied** with the required standard of dealings and the code of conduct for directors' securities transactions for the year ended June 30, 2025[72](index=72&type=chunk) [Major Shareholders](index=36&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1) As of June 30, 2025, major shareholders (excluding directors or chief executives) included Bank of Communications Trustee Limited holding 9.20% and UBS Group AG holding 5.09% of the company's shares | Name | Nature of Interest | Approximate Number of Shares | Approximate Percentage of Total Ordinary Share Capital | | :--- | :--- | :--- | :--- | | Bank of Communications Trustee Limited | Trust | 251,368,914 | 9.20% | | UBS Group AG | Interest in controlled corporation | 138,992,423 | 5.09% | - Bank of Communications Trustee Limited holds shares as the **trustee of the Share Award Scheme**[76](index=76&type=chunk) - UBS Group AG is deemed to be interested in the Company's shares held by its wholly-owned subsidiaries[76](index=76&type=chunk) [Competing Interests](index=36&type=section&id=%E7%AB%B6%E7%88%AD%E6%AC%8A%E7%9B%8A) As of June 30, 2025, no directors, management shareholders, or their associates had any interests in businesses competing or potentially competing with the Group's operations - As of June 30, 2025, **none of the Directors**, management shareholders, or their respective associates had any interests in any business that competes or is likely to compete with the Group's business[75](index=75&type=chunk) [Audit Committee](index=37&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, established in 2003 and comprising three independent non-executive directors, reviewed the Group's interim results for the six months ended June 30, 2025, and found them compliant with accounting standards and Listing Rules - The primary responsibilities of the Audit Committee are to **review and supervise** the Group's financial reporting process and internal control systems[77](index=77&type=chunk) - The Audit Committee comprises three independent non-executive directors: Professor Mo Lai Lan (Chairperson), Dr. Lai Kwun Wing, and Mr. Yang Debin, JP[77](index=77&type=chunk) - The Audit Committee has reviewed the Group's interim results for the six months ended June 30, 2025, and is of the opinion that they were prepared in accordance with applicable accounting standards and in compliance with the Listing Rules and statutory requirements, with **adequate disclosures** made[77](index=77&type=chunk) [Purchase, Redemption or Sale of the Company's Listed Securities](index=37&type=section&id=%E8%B3%BC%E5%9B%9E%E3%80%81%E8%B4%96%E5%9B%9E%E6%88%96%E5%87%BA%E5%94%AE%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) For the six months ended June 30, 2025, neither the company nor its subsidiaries purchased, redeemed, or sold any of the company's listed securities - For the six months ended June 30, 2025, **neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities**[78](index=78&type=chunk) [Sufficiency of Public Float](index=37&type=section&id=%E5%85%85%E8%B6%B3%E5%85%AC%E7%9C%BE%E6%8C%81%E8%82%A1%E9%87%8F) Based on publicly available information and directors' knowledge, the company maintained a sufficient public float throughout the six months ended June 30, 2025 - The Company maintained a **sufficient public float** throughout the six months ended June 30, 2025, based on information publicly available and within the knowledge of the Directors[79](index=79&type=chunk)

Core Viewpoint - China Soft International (00354) has seen a decline of over 5%, currently trading at HKD 6.17 with a transaction volume of HKD 280 million. The company is set to hold a board meeting on August 25 to discuss its interim results. [1] Group 1: Company Performance - The research report from Credit Lyonnais indicates that the long-term development trend of China Soft International remains unchanged, with expectations that the launch of Huawei's HarmonyOS personal computers will drive the virtual machine business as a key focus for this year. However, new growth drivers are expected to take time to materialize. [1] - Credit Lyonnais forecasts a slight improvement in gross margin for China Soft International this year, benefiting from the rapid growth of high-margin businesses. The projected year-on-year growth for revenue and net profit in the first half of the year is 10.5% and 10.1%, respectively. [1] Group 2: Market Outlook - The rating for China Soft International has been downgraded from "highly confident to outperform the market" to "outperform the market" due to the current valuation not being cheap. However, the target price has been raised from HKD 6.5 to HKD 7.1. [1] - It is anticipated that large-scale procurement orders from the government and state-owned enterprises for Huawei's new PCs will not materialize until the end of this year or early next year. Consequently, the revenue growth forecast for 2025 has been revised down from 10% to a year-on-year growth of 7.6%, reflecting delays in revenue contributions from virtual machine products. [1]

智通财经APP获悉，中软国际(00354)现跌超5%，截至发稿，跌5.08%，报6.17港元，成交额2.8亿港元。 该行指出，考虑到中软现价估值并不便宜，里昂将其评级从"高度确信跑赢大市"下调至"跑赢大市"，但 将目标价从6.5元上调至7.1元，预期政府和国企对华为新PC的大规模采购订单要到今年底至明年才会出 现，因此将2025年收入增长预测从10%下调至按年增长7.6%，反映其虚拟机产品的收入贡献延迟。 消息面上，中国软件国际拟于8月25日举行董事会会议考虑及通过公司中期业绩。里昂发表研究报告 指，中软国际长期发展趋势未变，预期华为鸿蒙个人电脑的推出，将推动虚拟机业务成为今年发展重 心，但新增长动力需时体现，预期虚拟机业务需时更久才能贡献收入。受惠于高利润业务增速较快，里 昂预期中软今年毛利率可轻微改善，目前预测上半年收入及净利润分别按年增长10.5%及10.1%。 ...

Core Viewpoint - Zhongsoft International (00354) experienced a significant stock increase, rising over 6% in early trading, attributed to developments in Huawei's Ascend hardware and its open-source strategy [1] Group 1: Company Developments - Huawei's rotating chairman Xu Zhijun announced the full open-source of Ascend hardware at the Ascend Computing Industry Development Summit on August 5 [1] - The commercialization of the Ascend ecosystem is accelerating, particularly in sectors such as finance, energy, and manufacturing [1] - By May 2025, the Ascend ecosystem is expected to have over 6.65 million developers, more than 8,800 partners, and 23,900 solution certifications completed [1] Group 2: Industry Insights - The Cyberspace Administration of China recently held discussions with NVIDIA regarding security risks associated with the H20 chip, indicating a focus on domestic alternatives [1] - Jin Yuan Securities suggests a long-term commitment to domestic core replacement sectors, particularly emphasizing the Ascend industry chain [1] - AVIC Securities highlights the long-term collaboration between Zhongsoft International and Huawei, covering a full-stack partnership from basic software and hardware to AI platforms and industry applications [1]

此外，网信办近日就H20芯片安全风险约谈英伟达，金元证券表示，中长期看应坚定布局国产替代核心 赛道，重点关注昇腾产业链等。中航证券指出，中国软件国际与华为长期保持从基础软硬件、AI平 台、智能体到行业应用的全栈合作，系华为云连续七年的"同舟共济"合作伙伴，双方在协同创新、生态 共建与行业赋能等方面多维度深度合作。 消息面上，8月5日，在昇腾计算产业发展峰会上，华为轮值董事长徐直军宣布，华为昇腾硬件使能 CANN全面开源开放。据悉，昇腾生态的商业化进程加速，尤其在金融、能源、制造等行业。截至2025 年5月，昇腾已发展超过665万开发者、8800多家合作伙伴，完成23900多个解决方案认证。 智通财经APP获悉，中软国际(00354)早盘涨超6%，截至发稿，涨5.5%，报6.12港元，成交额4.96亿港 元。 ...