Financial Performance - Net income for the first quarter of 2025 was $6.0 million, or $1.26 per share, compared to $5.9 million, or $1.24 per share, in the fourth quarter of 2024, and $7.1 million, or $1.48 per share, in the first quarter of 2024, reflecting a year-over-year decrease of 15.5%[1] - Non-interest income for Q1 2025 was $5.9 million, a 3.5% increase from $5.7 million in Q1 2024, driven by fee income increases in wealth management and service charges[26] - Reported net income (GAAP) for the three months ended March 31, 2025, was $6,023,000, slightly up from $5,914,000 in the prior quarter, reflecting a growth of 1.84%[74] - Basic and diluted earnings per share (non-GAAP) remained stable at $1.26 for the quarter ended March 31, 2025, consistent with the previous quarter[74] Income and Expenses - Net interest income for the first quarter of 2025 totaled $19.8 million, an increase of $1.7 million, or 9.4%, compared to $18.1 million in the first quarter of 2024[18] - Non-interest expense decreased to $16.9 million, down $0.9 million, or 5.1%, from $17.8 million in the prior quarter[15] - Total non-interest expense rose to $16,927 million, reflecting a 1.4% increase from $16,698 million[56] - The effective tax rate increased to 21.6% from 21.2% in the prior quarter, primarily due to an increase in pretax income[17] Asset and Equity Growth - Total assets rose to $2.797 billion as of March 31, 2025, a 0.7% increase from $2.776 billion at the end of 2024[34] - Total shareholders' equity increased to $228.3 million as of March 31, 2025, a 6.0% rise from $215.3 million at the end of 2024[41] - Total equity to total assets ratio (GAAP) improved to 8.16% as of March 31, 2025, compared to 7.76% at December 31, 2024[70] Loan and Deposit Information - Annualized loan growth was 5.1% for the three months ended March 31, 2025, with commercial loan growth at 10.5%[10] - The Canal Bank division experienced loan growth of 14.9% and deposit growth of 82.0% compared to the prior year-end[10] - Total deposits increased by $36.5 million, or 1.5%, compared to the prior year-end, driven by increases in interest-bearing demand and money market deposits[39] - The net loans, after accounting for deferred loan fees, were $2.08 billion as of March 31, 2025, compared to $2.05 billion at the end of 2024, indicating a growth of approximately 1.5%[54] Credit Losses and Non-Performing Loans - Provision for credit losses was $1.1 million, an increase of $3.1 million, or 155.0%, compared to a credit of $2.0 million for the same period in the prior year[25] - Non-performing loans increased to $9.9 million, or 0.47% of total loans, as of March 31, 2025, up from $9.0 million, or 0.43% as of December 31, 2024[30] - The allowance for credit losses on loans was $22.5 million as of March 31, 2025, up from $21.4 million as of December 31, 2024[32] Market and Operational Metrics - Fully taxable equivalent net interest margin was 2.96% for the first quarter of 2025, compared to 2.73% for the same period in the prior year[24] - The efficiency ratio (unadjusted) improved to 65.85% from 68.88%[56] - Return on average assets improved to 0.88% from 0.85%[56] - Average interest-earning assets increased by $48.6 million, while average interest-bearing liabilities increased by $34.8 million compared to the same period in the prior year[24]

Financial Performance - BV Financial, Inc. reported net income of $2.1 million or $0.21 per diluted share for Q1 2025, a decrease from $2.6 million or $0.24 per diluted share in Q1 2024[2]. - Net income for Q1 2025 was $2,099,000, down 18.43% from $2,574,000 in Q1 2024[26]. - Basic earnings per share decreased to $0.21 in Q1 2025 from $0.24 in Q1 2024, a decline of 12.50%[26]. Asset and Loan Growth - Total assets increased by $10.1 million, or 1.11%, to $921.9 million at March 31, 2025, primarily due to a $12.0 million increase in loans receivable[5]. - Net loans increased by $12.0 million, or 1.65%, to $741.3 million at March 31, 2025, driven by growth in commercial and industrial loans[6]. - The average balance of loans increased to $739,666,000 in Q1 2025, up from $708,367,000 in Q1 2024, reflecting a growth of 4.66%[28]. - Total assets grew to $915,713,000 in Q1 2025, compared to $883,368,000 in Q1 2024, an increase of 3.65%[28]. Deposits and Equity - Total deposits rose by $6.4 million, or 0.98%, to $657.9 million at March 31, 2025, with noninterest-bearing deposits increasing by $6.5 million, or 5.0%[11]. - Stockholders' equity increased by $2.6 million, or 1.3%, to $198.1 million at March 31, 2025, mainly due to net income[12]. Interest and Noninterest Income - Total interest income for Q1 2025 was $11,881,000, an increase of 7.97% from $11,004,000 in Q1 2024[26]. - Net interest income after provision for credit losses was $8,346,000, compared to $7,945,000 in the same period last year, reflecting a 5.04% increase[26]. - Noninterest income decreased to $530,000 in Q1 2025 from $578,000 in Q1 2024, a decline of 8.30%[26]. Expenses and Credit Losses - Noninterest expense increased to $6.2 million in Q1 2025, up from $4.9 million in Q1 2024, primarily due to a 44.6% rise in compensation and benefits expenses[16]. - Total noninterest expense rose to $6,178,000, up 25.54% from $4,923,000 in Q1 2024[26]. - The provision for credit losses was $297,000 in Q1 2025, compared to $18,000 in Q1 2024, reflecting a more cautious approach to credit risk[6]. - The allowance for credit losses on loans increased to $9,190,000 from $8,871,000 year-over-year[30]. Asset Quality and Tax Rate - Non-performing assets totaled $5.0 million at March 31, 2025, an increase from $4.2 million at December 31, 2024, indicating a slight deterioration in asset quality[13]. - The effective tax rate decreased to 22.2% in Q1 2025 from 28.5% in Q1 2024, attributed to an accrual adjustment made in the current quarter[17]. Interest Margin - The net interest margin improved to 4.12% in Q1 2025 from 3.91% in Q1 2024, indicating better efficiency in earning interest[14]. - The net interest margin improved to 4.12% in Q1 2025 from 3.91% in Q1 2024[28].

Financial Performance - Net income for the first quarter of 2025 was $16.3 million, an increase of 0.4% from the previous quarter and 11.4% from the same quarter last year[1][6]. - Annualized return on average assets was 1.85%, up from 1.82% in the fourth quarter of 2024 and 1.65% in the first quarter of 2024[5]. - The efficiency ratio improved to 38.3% from 40.5% in the previous quarter and 37.9% in the same quarter last year[5][15]. - Net income for Q1 2025 was $16,297,000, a marginal increase from $16,235,000 in Q4 2024[33]. - Basic income per share remained stable at $0.64 in Q1 2025, consistent with Q4 2024[33]. - Net interest income increased to $30,554,000 in Q1 2025 from $30,060,000 in Q4 2024, representing a growth of 1.64%[33]. - Noninterest income for the first quarter of 2025 was $5.5 million, a 2.5% increase from the previous quarter but a 2.0% decrease from the same quarter last year[12][13]. - Noninterest income rose to $5,456,000 in Q1 2025 compared to $5,321,000 in Q4 2024, an increase of 2.54%[33]. - Total noninterest expense decreased to $13,799,000 from $14,326,000 in the previous quarter, a reduction of 3.69%[38]. - Net income available to common shareholders for the quarter was $16,297,000, slightly up from $16,235,000 in the previous quarter, representing an increase of 0.38%[38]. Asset and Loan Management - Total assets increased by $65.9 million, or 1.8%, to $3.66 billion compared to the previous quarter[17]. - Total assets as of March 31, 2025, were $3,659,725,000, up from $3,594,045,000 at the end of Q4 2024[36]. - Total loans at the end of the period were $3,138,955 thousand, a decrease from $3,165,316 thousand in the prior quarter, representing a decline of 0.8%[48]. - Loans held for investment decreased by $26.6 million, or 0.8%, from the previous quarter, while total loans increased by $30.1 million in commercial real estate loans[19]. - The average balance of gross loans was $3,184,351,000, with an interest income of $50,253,000, yielding a rate of 6.40%[40]. - Residential real estate loans comprised 71.6% of total loans, amounting to $2,246,818,000 as of March 31, 2025[44]. Credit Quality and Losses - The provision for credit losses in Q1 2025 was $135,000, down from $202,000 in Q4 2024 and $140,000 in Q1 2024, primarily due to increased reserves for commercial real estate loans[24]. - Nonperforming assets reached $18.5 million, or 0.51% of total assets, as of March 31, 2025, an increase from $18.4 million at December 31, 2024, and $14.7 million at March 31, 2024[25]. - The allowance for credit losses as a percentage of total loans was 0.59% at March 31, 2025, unchanged from December 31, 2024, and slightly up from 0.58% at March 31, 2024[26]. - The allowance for credit losses as a percentage of nonperforming loans was 110.52% at March 31, 2025, compared to 104.08% at December 31, 2024, and 135.23% at March 31, 2024[26]. - Nonaccrual loans decreased to $16,823 thousand as of March 31, 2025, from $18,010 thousand in the previous quarter, representing a decline of 6.6%[46]. - Total non-performing loans increased to $16,823 thousand from $14,316 thousand in the prior quarter, marking a rise of 17.5%[46]. - The allowance for loan losses to total loans ratio remained stable at 0.59% as of March 31, 2025, consistent with the previous quarter[48]. Market and Operational Risks - Forward-looking statements indicate potential risks including economic conditions, regulatory changes, and impacts from proposed mergers, which could materially affect future financial performance[28][29]. - The company is pursuing a proposed merger with First IC, which carries risks related to cost savings, regulatory approvals, and integration challenges[29]. - The company emphasizes the importance of cybersecurity and technological advancements in maintaining competitive advantage in the financial services industry[29]. - The impact of geopolitical events, such as conflicts in Ukraine and Israel, may also pose risks to the company's operations and financial results[29]. - The company cautions against undue reliance on forward-looking statements due to inherent uncertainties and risks[30]. Deposit and Interest Metrics - Total deposits were $2.74 billion, showing a slight increase from the previous quarter but a decrease of 2.7% compared to the same quarter last year[20]. - Total deposits increased to $2,737,030,000 in Q1 2025 from $2,736,798,000 in Q4 2024[36]. - Net interest margin increased to 3.67%, up 10 basis points from the previous quarter and 43 basis points from the same quarter last year[9][10]. - Interest income for Q1 2025 was $52,519,000, slightly down from $52,614,000 in Q4 2024[33]. - Total interest income for the three months ended March 31, 2025, was $52,519,000, a slight decrease of 0.18% from $52,614,000 in the previous quarter[38].

Financial Performance - Total revenues net of interest expense increased to $16,967 million in Q1 2025, up from $15,801 million in Q1 2024, representing a growth of 7.3%[195] - Net income for Q1 2025 was $2,584 million, compared to $2,437 million in Q1 2024, reflecting an increase of 6.0%[199] - Total non-interest revenues rose to $12,798 million in Q1 2025, a 6.4% increase from $12,032 million in Q1 2024[195] - Earnings per share (diluted) increased to $3.64 in Q1 2025 from $3.33 in Q1 2024, representing a growth of 9.3%[195] - Comprehensive income for Q1 2025 was $2,613 million, compared to $2,354 million in Q1 2024, reflecting an increase of 11.0%[199] - Cash dividends declared for common shares were $576 million for the three months ended March 31, 2025, compared to $507 million in the same period of 2024, marking an increase of 13.6%[220] - Total revenues net of interest expense after provisions for credit losses for the three months ended March 31, 2025, were $15,817 million, up from $14,532 million in 2024, an increase of 8.83%[364] - Net income for the three months ended March 31, 2025, was $2,584 million, compared to $2,437 million in 2024, reflecting a growth of 6.04%[360] Assets and Liabilities - Total assets increased to $282,244 million as of March 31, 2025, compared to $271,461 million at the end of 2024, marking a growth of 4.3%[201] - The company’s total equity increased from $30,264 million as of December 31, 2024, to $31,202 million as of March 31, 2025, representing a growth of 3.1%[220] - The total fair value of AFS debt securities was $1.110 billion as of March 31, 2025, down from $1.240 billion as of December 31, 2024[278] - Total financial assets measured at fair value amounted to $1,319 million, compared to $2,246 million as of December 31, 2024, reflecting a decrease of approximately 41.3%[327] - Total liabilities measured at fair value remained constant at $530 million from December 31, 2024, to March 31, 2025[331] Customer Deposits and Loans - The company reported a net increase in customer deposits of $6,973 million in Q1 2025, compared to $5,283 million in Q1 2024[204] - As of March 31, 2025, total customer deposits increased to $146.396 billion from $139.413 billion as of December 31, 2024, representing a growth of approximately 5.1%[294] - Card Member loans decreased slightly to $133,611 million as of March 31, 2025, from $133,995 million at the end of 2024[201] - Card Member loans as of March 31, 2025, totaled $139,203 million, slightly down from $139,674 million as of December 31, 2024, indicating a decrease of 0.3%[221] - The company’s consumer Card Member loans decreased from $107,646 million as of December 31, 2024, to $105,213 million as of March 31, 2025, a decline of 2.3%[221] Credit Losses and Provisions - The company reported reserves for credit losses of $5,592 million for Card Member loans as of March 31, 2025, compared to $5,679 million as of December 31, 2024, showing a reduction of 1.5%[221] - Provisions for credit losses for Card Member loans were $901 million for the three months ended March 31, 2025, compared to $1,014 million for the same period in 2024[267] - The total reserve for credit losses for Other loans increased to $244 million as of March 31, 2025, reflecting growth in Personal Loans and Business Line of Credit offerings[273] - The company established reserves for interest believed to be uncollectible, reflecting a proactive approach to credit risk management[230] Share Repurchase and Dividends - During the three months ended March 31, 2025, the company repurchased a total of 2,270,300 shares at an average price of $297.37 per share[374] - The company has a remaining authorization to repurchase up to 72,900,519 shares under its publicly announced repurchase programs[374] - The company’s Board of Directors authorized the repurchase of up to 120 million common shares on March 8, 2023, replacing the prior authorization[374] Legal Proceedings - The estimated range of possible loss for disclosed legal proceedings is zero to $190 million in excess of any accruals related to those matters[310] - American Express has accrued for certain outstanding legal proceedings, evaluating developments quarterly to adjust the accrual amount as necessary[309] - The company is involved in various legal proceedings, including antitrust claims, which could have a material adverse effect on its business and results of operations[310] Economic Outlook - The U.S. unemployment rate is projected to be between 3% and 8% by the fourth quarter of 2025, indicating potential economic variability[265]

Revenue and Customer Concentration - The Americas segment generated revenue with no single industry representing more than 18% of the segment's revenue in 2025[30]. - The largest independent Steelcase dealer in the Americas accounted for approximately 6% of the segment's revenue in 2025, while the five largest independent dealers collectively accounted for about 15%[31]. - The International segment's largest independent dealer accounted for approximately 4% of its revenue in 2025, with the top five dealers making up about 10%[34]. - The largest customer contributed approximately 2% to consolidated revenue in 2025, with the top five customers accounting for about 6%[37]. - Foreign revenue accounted for approximately 28% of consolidated revenue in 2025, down from 29% in 2024[196]. Financial Performance and Investments - Total investments in unconsolidated joint ventures and other equity investments amounted to $53.3 million as of February 28, 2025[36]. - Research, design, and development expenses were $50.4 million in 2025, up from $48.2 million in 2024 and $44.4 million in 2023[47]. - Cost of sales decreased by approximately $6 million in 2025 and $14 million in 2024 due to changes in commodity costs[204]. - A 10% strengthening of the U.S. dollar would have increased operating income by approximately $16.8 million in 2025 and $16.5 million in 2024[197]. - A 1% increase in interest rates would have increased net income by approximately $2 million in 2025 and $1 million in 2024[201]. - An additional 1% increase in commodity prices would have decreased operating income by approximately $12 million in 2025 and $11 million in 2024[204]. Employment and Manufacturing - As of February 28, 2025, the company employed approximately 11,300 individuals, including about 6,600 in manufacturing and distribution[56]. - The company’s manufacturing model is predominantly make-to-order, with standard lead times typically ranging from four to six weeks[40]. Environmental Compliance - The company is subject to various environmental laws and believes it is in substantial compliance, with established reserves deemed adequate for anticipated remediation costs[58]. Currency and Investment Valuation - Cumulative net currency translation adjustments reduced shareholders' equity by $75.9 million as of February 28, 2025, compared to $68.5 million as of February 23, 2024[198]. - Net foreign currency exchange losses were $2.0 million in 2025 and $1.0 million in 2024[199]. - The net cash surrender value of variable life COLI policies was $64.4 million as of February 28, 2025, with 60% in fixed income and 40% in equity investments[205]. - A 10% adverse change in the value of the equity portion of variable life COLI investments would reduce net income by approximately $3 million in both 2025 and 2024[206].

Financial Performance - Net sales for Q1 2025 increased to $222,211,000, a 13.2% rise from $196,280,000 in Q1 2024[14] - Gross margin improved to $95,437,000, compared to $77,178,000 in the same period last year, reflecting a significant increase of 23.6%[14] - Net earnings for Q1 2025 were $38,398,000, up 31.8% from $29,131,000 in Q1 2024[14] - Earnings per share (EPS) for Q1 2025 were $1.31 (basic) and $1.30 (diluted), compared to $0.99 for both in Q1 2024[14] - Comprehensive income for Q1 2025 was $43,556,000, compared to $25,509,000 in Q1 2024, reflecting a growth of 70.8%[16] - Total operating earnings for Q1 2025 were $49.4 million, representing 22.2% of sales, compared to $36.6 million or 18.6% of sales in Q1 2024[85] - Gross margin for Q1 2025 was 42.9%, an increase from 39.3% in the prior year, benefiting from higher sales volumes and a favorable product mix[85] Assets and Liabilities - Total assets increased to $899,596,000 as of March 31, 2025, up from $816,413,000 at the end of 2024, marking a growth of 10.2%[12] - Cash and cash equivalents decreased to $131,358,000 from $295,305,000, a decline of 55.6%[12] - Total current liabilities rose to $141,017,000, an increase of 19.3% from $118,205,000 in the previous period[12] - The balance of contract liabilities increased to $90.6 million as of March 31, 2025, up from $78.3 million at the end of 2024[50] - Primary Working Capital (PWC) increased to $187.5 million (22.0% of sales) as of March 31, 2025, compared to $172.1 million (20.8% of sales) at the end of 2024[89] - Receivables rose by $27.5 million due to increased sales activity, while inventories increased by $6.0 million[89] Cash Flow - The company reported a net cash provided by operations of $33,027,000 for Q1 2025, compared to $21,460,000 in Q1 2024, an increase of 53.8%[19] - Cash provided by operations in Q1 2025 was $33.0 million, up from $21.5 million in Q1 2024, driven by higher net earnings[90] - Cash and cash equivalents decreased to $131.4 million from $295.3 million at the end of 2024, primarily due to $184.9 million used for the SmartCover acquisition[91] Dividends and Share Repurchase - The company declared dividends of $0.34 per share in Q1 2025, up from $0.27 per share in Q1 2024[14] - The company authorized the repurchase of up to 200,000 shares of common stock through February 2026, with no shares purchased in Q1 2025[102] Acquisitions and Investments - The total purchase consideration for SmartCover was $184.9 million, with $117.4 million allocated to goodwill that is not tax-deductible[34][35] - The company acquired SmartCover for $184.9 million, with revenue contribution of $6.2 million for the two months ended March 31, 2025[77][78] - The Company acquired select remote water monitoring hardware and software for $3.0 million effective January 1, 2024[36] - Property, plant, and equipment expenditures for Q1 2025 were $3.0 million, slightly higher than $2.7 million in Q1 2024[90] Market and Revenue Insights - Utility water market net sales reached $197.3 million, up 16.0% from $170.1 million in the prior year, driven by increased sales of mechanical and ultrasonic meters, ORION® Cellular endpoints, and BEACON® SaaS revenue[84] - The Company recognized $20.3 million in revenue over time, representing 9.1% of total revenue, compared to $12.7 million or 6.5% in the prior year[48] - The company continues to operate under a single segment, focusing on water and wastewater management solutions[45] - Approximately 40% of water meters installed in the U.S. have been converted to advanced metering infrastructure (AMI) systems[67][73] - The flow instrumentation product line accounted for approximately 12% of net sales in 2024, serving various industrial applications[70] - The company is expanding into international markets, including the Middle East and the UK, with its BlueEdge offerings[82] Taxation - The effective income tax rate for the Company was 24.4% for the three months ended March 31, 2025, compared to 23.5% in the prior year[42] - The provision for income taxes for Q1 2025 was 24.4%, compared to 23.5% in the prior year[86] Compliance and Internal Controls - The company remains compliant with all financial covenants as of March 31, 2025[92] - There were no material changes in the company's internal control over financial reporting during Q1 2025[98]

Financial Performance - Revenue contributed by the VIEs accounted for 44.5%, 43.4%, and 47.9% of total revenues for the years ended December 31, 2022, 2023, and 2024, respectively[36]. - The company reported a net loss attributable to Phoenix New Media Limited of RMB 53.6 million for the year ended December 31, 2024, compared to a net loss of RMB 102.5 million for 2023 and RMB 109.7 million for 2022[54][55]. - Total operating expenses for the year ended December 31, 2024, were RMB 333.4 million, an increase from RMB 353.6 million in 2023 and RMB 428.6 million in 2022[54][55]. - Third-party revenues for the year ended December 31, 2024, were RMB 703.7 million, compared to RMB 692.0 million in 2023 and RMB 785.7 million in 2022[54][55]. - The gross profit for the year ended December 31, 2024, was RMB 268.7 million, showing a decrease from RMB 227.9 million in 2023 and RMB 237.2 million in 2022[54][55]. - The loss from operations for the year ended December 31, 2024, was RMB 64.7 million, compared to RMB 125.7 million in 2023 and RMB 191.4 million in 2022[54][55]. - The company reported inter-company revenues of RMB 51.5 million for the year ended December 31, 2024, compared to RMB 33.3 million in 2023 and RMB 8.2 million in 2022[54][55]. - The company has indicated that undistributed earnings subject to dividend tax are expected to be indefinitely reinvested for the foreseeable future[49]. - The hypothetical net distribution to shareholders, assuming a future dividend, would be 67.5% of pre-tax earnings after accounting for a 25% income tax and a 10% withholding tax[50]. Debt and Financing - As of January 1, 2022, subsidiaries had debt financing from Phoenix New Media Limited of RMB834.6 million, and VIEs had debt financing from subsidiaries of RMB255.9 million[46]. - In 2024, subsidiaries received RMB15.9 million (US$2.2 million) of debt financing from Phoenix New Media Limited[46]. - VIEs and their subsidiaries repaid RMB77.6 million of debt financing to subsidiaries in 2022 and received RMB229.9 million of debt financing in 2023[46]. - The cash flow from financing activities showed a net cash used of RMB (1,901,000) in 2024, compared to a net cash provided of RMB (655,000) in 2023, indicating a significant shift in financing activities[58]. Regulatory and Compliance Risks - The company faces risks related to the enforcement of contractual arrangements with VIEs, which may not be as effective as ownership[38]. - The Holding Foreign Companies Accountable Act may affect the company's ability to maintain its listing on the NYSE[40]. - The company is subject to uncertainties regarding future PRC laws and regulations that could impact its operations and financial performance[39]. - The lack of an Internet audio-visual program transmission license may expose the company to administrative sanctions, affecting paid mobile video services and video advertising services[64]. - The company may face adverse effects from changes in PRC regulations regarding foreign investment in Internet businesses, which could lead to severe penalties or loss of interests in operations[66]. - The company may be subject to PRC regulations that could restrict its online advertising services, impacting its business operations[72]. - The company is not currently in compliance with the MIIT 2006 Notice regarding ownership of trademarks used in telecommunications services[130]. - The complexity and uncertainties in PRC regulations may adversely affect the company's ability to own key assets, including PC websites and mobile applications[133]. Advertising and Revenue Generation - The company expects to continue relying on advertising to drive a significant portion of future revenues, with potential material impacts if existing advertisers are not retained or new advertisers are not attracted[63]. - In 2022, 2023, and 2024, the company generated 88.7%, 89.5%, and 89.6% of its total revenues from advertising services, respectively[71]. - The ability to retain existing advertisers and attract new ones is crucial for the company's future growth and operating results[72]. - The majority of net advertising revenues in China were derived from advertising agencies in 2022, 2023, and 2024, indicating a reliance on these agencies for sourcing advertisers and collecting revenue[78]. - Consolidation among advertising agencies in China may lead to increased service fees, negatively impacting net advertising revenues[79]. Operational Challenges - The company faces risks related to the inability to successfully expand its mobile strategy and increase mobile advertising revenues, which could materially affect business and growth prospects[63]. - The company may experience fluctuations in quarterly revenues and operating results, making predictions difficult and potentially causing results to fall short of expectations[65]. - The company must continue to provide high-quality content to attract and retain users; failure to do so may result in reduced user traffic and competitiveness[80]. - The company launched an e-commerce business in 2020 to leverage its user base, but success is not guaranteed[86]. - The company faces significant competition from various media and online service providers, which may impact user traffic and advertising revenue[88]. Assets and Liabilities - Total assets as of December 31, 2024, amounted to RMB 1,711,927,000, a decrease from RMB 1,758,744,000 as of December 31, 2023, reflecting a decline of approximately 2.65%[56][57]. - Cash and cash equivalents increased to RMB 607,579,000 in 2024 from RMB 527,407,000 in 2023, representing a growth of about 15.2%[56][57]. - Total liabilities decreased to RMB 598,517,000 in 2024 from RMB 595,121,000 in 2023, indicating a slight increase of approximately 0.4%[56][57]. - Total shareholders' equity as of December 31, 2024, was RMB 1,113,410,000, a decrease from RMB 1,163,623,000 in 2023, reflecting a decline of approximately 4.3%[56][57]. - The amount due from inter-company entities was RMB 2,375,593,000 as of December 31, 2024, compared to RMB 1,969,665,000 in 2023, indicating an increase of approximately 20.6%[56][57]. Legal and Intellectual Property Issues - The company has been subject to various legal proceedings, which could materially affect its financial condition and results of operations[151]. - The company faces increased risks of intellectual property infringement claims, with potential substantial damages and operational disruptions[156]. - The company has been fined RMB250,000 for disseminating content without proper licensing rights[157]. - The company may be subject to copyright claims in jurisdictions outside of China, which could be costly and time-consuming to defend[160]. Cybersecurity and Data Protection - The company is subject to various cybersecurity and data protection laws in China, which could lead to significant legal liabilities if not complied with[112]. - The Cybersecurity Law mandates that personal information and important data must be stored within China, with potential penalties for non-compliance[113]. - The company may face operational disruptions if classified as a "critical information infrastructure operator" under the Cybersecurity Review Measures, which could impact user registration and business operations[115]. Economic and Market Conditions - China's GDP growth was reported at 5% in 2024, indicating a deceleration in economic growth since 2012[165]. - The Chinese economy has shown uneven growth, which may adversely affect the company's operations and financial condition[218]. - The PRC government continues to exert significant control over economic growth and industry development, impacting the company's competitive position[216]. Shareholder and Governance Issues - The company's dual-class ordinary share structure may discourage potential change of control transactions, affecting shareholder interests[70]. - Phoenix TV (BVI) owned 55.0% of the total issued shares as of March 31, 2025, giving it 61.4% of the total voting power, which may not align with the interests of other shareholders[196]. - The company may encounter conflicts of interest with Phoenix TV due to its controlling beneficial ownership, potentially affecting decision-making[197].

Financial Performance - Revenues from variable interest entities (VIEs) accounted for 94.2%, 86.3%, and 77.2% of total revenues in 2022, 2023, and 2024, respectively[26]. - For the year ended December 31, 2024, total operating revenue reached RMB 14,203,594 thousand, with third-party revenues contributing RMB 10,958,115 thousand[52]. - The net income attributable to ordinary shareholders for the year ended December 31, 2024, was RMB 1,100,460 thousand, reflecting a stable performance[52]. - For the year ended December 31, 2023, total operating revenue was RMB 13,057,082 thousand, with third-party revenues at RMB 11,264,532 thousand[52]. - Total operating revenue for the year ended December 31, 2022, was RMB 9,865,811 thousand, with third-party revenues contributing RMB 9,297,734 thousand[53]. - Gross profit for the year ended December 31, 2024, was RMB 5,026,228 thousand, indicating effective cost management[52]. - Net income attributable to ordinary shareholders for the year was RMB 819,752 thousand, after accounting for income tax expense of RMB (202,640) thousand[53]. - The total operating cost for the year ended December 31, 2024, was RMB 9,177,366 thousand, demonstrating a significant scale of operations[52]. Dividends and Capital Contributions - Dividends made to investors were nil, RMB136 million, and RMB164 million (US$22.5 million) for the years ended December 31, 2022, 2023, and 2024[39]. - The aggregate amount of capital contributions by LexinFintech Holdings Ltd. to PRC subsidiaries was RMB3,756 million and RMB3,812 million (US$522 million) as of December 31, 2023 and 2024, respectively[37]. - The company plans to distribute dividends equivalent to approximately 15% to 30% of net profit for the previous six-month period, subject to board approval[47]. - In August 2023, the board approved a semi-annual cash dividend policy, with a declared dividend of US$0.058 per ordinary share for the six-month period ended June 30, 2023[47]. - The company anticipates a dividend payout ratio of 25% of total net profit for the entire year of 2025, as approved in November 2024[47]. Regulatory Environment and Compliance - The company has obtained necessary licenses and permits from PRC authorities for its operations, but future regulatory changes may require additional approvals[34]. - The company faces significant risks related to compliance with evolving PRC laws and regulations, which could adversely affect its operations and financial condition[75]. - The PRC government's oversight may influence the company's operations and limit its ability to offer securities to investors[72]. - Future changes in PRC laws could invalidate the company's contractual arrangements, leading to potential loss of operational control[82]. - The interpretation and enforcement of PRC laws regarding the company's operations remain uncertain, posing additional risks[89]. - The company must ensure compliance with PRC regulations regarding employee stock incentive plans to avoid fines and legal sanctions[148]. - The evolving PRC regulatory framework for internet-related businesses may create uncertainties that could disrupt the company's operations[108]. Financial Position and Assets - As of December 31, 2024, total assets reached RMB 22,240,779 thousand, with cash and cash equivalents amounting to RMB 2,254,213 thousand[54]. - Total liabilities as of December 31, 2024, were RMB 11,500,773 thousand, with borrowings totaling RMB 1,275,796 thousand[54]. - Total shareholders' equity remained stable at RMB 10,740,006 thousand as of December 31, 2024[54]. - Cash and cash equivalents increased to RMB 2,624,719 thousand as of December 31, 2023, compared to RMB 2,254,213 thousand in 2024[54]. - Financing receivables, net, were RMB 4,144,514 thousand as of December 31, 2023, indicating growth from previous periods[54]. - The company reported a significant increase in contract assets and service fees receivable, totaling RMB 6,712,799 thousand as of December 31, 2023[54]. Cash Flow and Investment Activities - The consolidated net cash provided by operating activities was RMB 1,081,458 thousand for the year ended December 31, 2024, a decrease from RMB 2,817,572 thousand in 2023[55]. - The net cash used in investing activities for 2024 was RMB (904,880) thousand, compared to RMB 2,334,452 thousand in 2023, indicating a significant reduction in investment outflows[55]. - In 2024, net cash provided by financing activities was RMB (387,277) thousand, a notable decline from RMB (3,882,952) thousand in 2023, reflecting changes in financing strategies[55]. - The net cash provided by funds to Group companies from the VIEs' investing activities for the year ended December 31, 2023, was RMB 1,108,503 thousand[45]. Risks Related to Variable Interest Entities (VIEs) - The company relies on contractual arrangements with variable interest entities (VIEs) for 77.2% of its revenues in 2024[79]. - The company’s contractual arrangements may not be as effective as ownership in directing the activities of the VIEs[84]. - The variable interest entities hold material assets, including intellectual properties and licenses, which could be jeopardized if these entities face bankruptcy or liquidation[97]. - The company may lose rights to economic benefits from variable interest entities if contractual arrangements are deemed invalid under new PRC regulations[100]. - The shareholders of the variable interest entities may have conflicts of interest that could adversely affect the company's control and economic benefits from these entities[90]. Taxation and Financial Liabilities - The company may face substantial tax liabilities if the PRC tax authorities determine that the contractual arrangements with variable interest entities were not conducted at arm's length[95]. - The company's financial position could be adversely affected by increased tax liabilities or penalties imposed on variable interest entities[96]. - The company may face unfavorable tax consequences if classified as a PRC resident enterprise, subjecting it to a 25% tax rate on worldwide income[150]. - Non-compliance with SAFE registration requirements could restrict the ability to distribute profits from PRC subsidiaries and expose the company to fines[145]. Market and Economic Conditions - Changes in China's economic and regulatory environment could materially impact the company's business operations and financial results[101]. - The market price for the company's American Depositary Shares (ADSs) may be volatile, and share repurchase programs may not enhance long-term shareholder value[75]. - The company strategically focuses on serving young generation consumers in China aged 23 to 40 to capture long-term growth potential[199]. Cybersecurity and Data Protection - The company is subject to complex and evolving laws regarding cybersecurity and data protection, which may require significant resources to comply[215]. - The PRC Cybersecurity Law requires network operators to implement security measures to protect personal information and prevent unauthorized access[217]. - The PRC Personal Information Protection Law (PIPL), effective November 2021, imposes strict rules on processing sensitive personal information, which includes personal identity numbers and location data[223].

Regulatory Environment - The company operates through a variable interest entity (VIE) structure due to PRC regulations, which restrict direct foreign investment in certain services, impacting its corporate structure and investor rights [25]. - The PRC government has imposed significant regulatory changes on the private education industry, particularly affecting after-school tutoring services, which ceased operations by the end of 2021 [30]. - The China Securities Regulatory Commission (CSRC) has established a filing-based regulatory system for overseas securities offerings, which the company has complied with for its initial public offering [34]. - The Holding Foreign Companies Accountable Act (HFCAA) poses risks for the company if its auditor is not subject to PCAOB inspection for two consecutive years, potentially leading to delisting [35]. - The company faces uncertainties regarding future PRC regulations that could impact its business operations and financial condition [30]. - The VIE's business restructuring to comply with new regulations has negatively affected the company's financial condition and results of operations in 2022 [30]. - The company is subject to ongoing regulatory scrutiny, which could significantly limit its ability to offer securities and impact the value of its ADSs [36]. - The company faces regulatory challenges related to cybersecurity and foreign investment, which could materially affect its business operations and financial condition [38]. - The PRC Cybersecurity Law requires network operators with personal information of over one million users to apply for a cybersecurity review before listing abroad, which the company has completed for its Nasdaq listing [178]. - The PRC Data Security Law, effective September 2021, imposes data security obligations and introduces a classification system for data based on its importance and potential harm [179]. - The PRC Personal Information Protection Law, effective November 2021, establishes strict rules for processing sensitive personal information, requiring specific purposes and protective measures [181]. - The company is subject to evolving legal developments, which may require additional permits and could delay business operations [171]. - The PRC government continues to play a significant role in regulating industry development, which may affect the company's competitive position [168]. - The company must navigate uncertainties related to national security reviews for overseas offerings, which could hinder its ability to raise capital [164]. - The CSRC issued new regulations effective March 31, 2023, requiring PRC companies to file for overseas securities offerings, which could impact future fundraising efforts [164]. - The PRC private education industry has faced intense scrutiny and regulatory changes, particularly affecting after-school tutoring institutions, which may impact the company's operations [174]. - Any failure to comply with PRC regulations could result in sanctions, including fines and restrictions on dividend payments, adversely affecting the company's financial condition [164]. - The company may face significant penalties or operational disruptions if the PRC government deems its contractual arrangements non-compliant with relevant laws [142]. - The Trial Measures require PRC companies to file overseas securities offerings and listings with the CSRC, with significant uncertainties regarding compliance and potential disruptions to business operations [144]. - There are substantial uncertainties regarding the interpretation and implementation of the Foreign Investment Law, which could impact the company's corporate structure and operations [156]. - The company may incur substantial costs if it exercises the option to acquire equity ownership in Shanghai Jinxin, which could negatively impact financial performance [155]. - Future regulatory changes could require the company to unwind contractual arrangements, potentially leading to significant operational disruptions and financial losses [157]. Financial Performance - In 2024, Jinxin Technology reported consolidated revenues of RMB 406.4 million, a significant increase from RMB 379.8 million in 2023, reflecting a growth of approximately 7.0% [45]. - The gross profit for 2024 was RMB 116.9 million, compared to RMB 159.8 million in 2023, indicating a decrease of about 26.8% [45]. - Operating income for 2024 was RMB 27.1 million, a decline from RMB 80.1 million in 2023, representing a decrease of approximately 66.1% [45]. - The company has made cumulative capital contributions of RMB 146.9 million to the WFOE for the years 2022, 2023, and 2024 [40]. - As of December 31, 2024, total assets amounted to RMB 243.3 million, while total liabilities were RMB 79.5 million, resulting in total shareholders' equity of RMB 163.8 million [47]. - The VIE transferred RMB 36.8 million to the WFOE in 2024 through intra-group loans, up from RMB 32.0 million in 2023 [40]. - Jinxin Technology has not declared or paid any dividends and intends to retain most of its available funds for business operations and expansion [41]. - The company reported net cash provided by operating activities of RMB 56,695 for the year ended December 31, 2023, compared to RMB 33,535 in 2022, indicating a significant increase of approximately 69% [50]. - Cash and cash equivalents at the end of 2023 were RMB 92,586, up from RMB 75,132 in 2022, representing a year-over-year increase of about 23% [50]. - The net cash used in investing activities for 2023 was RMB 30,630, compared to RMB 23,852 in 2022, showing an increase of approximately 28% [50]. - Total liabilities as of December 31, 2023, were RMB 55,580, a decrease from RMB 84,915 in 2022, reflecting a reduction of about 35% [48]. - The company incurred net losses in the past and may not be able to remain profitable or increase profitability in the future, posing a risk to financial stability [55]. - The company does not expect to pay dividends in the foreseeable future, relying instead on price appreciation for returns [62]. - The company has recognized share-based compensation expenses of RMB 13 thousand, RMB 16 thousand, and RMB 7 thousand (US$1 thousand) for the years ended December 31, 2022, 2023, and 2024, respectively [112]. - The company identified a material weakness in internal control over financial reporting, which may lead to material misstatements in future consolidated financial statements if not remedied [121]. - The material weakness is attributed to insufficient accounting and financial reporting personnel knowledgeable in U.S. GAAP and SEC requirements, resulting in significant management adjustments to financial statements [122]. - The company may not be able to obtain additional capital on favorable terms, which could limit its ability to fund operations and respond to competitive pressures [107]. - The company is exposed to interest rate risk, which could materially affect profitability due to fluctuations in interest income and expenses [106]. - The company faces significant uncertainties regarding the interpretation and implementation of PRC laws, which could adversely affect its business operations and financial condition [57]. - The company has a limited operating history in China's childhood education sector, having launched its app only in 2014, which complicates the evaluation of future performance [63]. - The company must effectively manage growth and operational efficiency to avoid adverse impacts on its financial condition and results [65]. - The company relies on a limited number of key customers for a significant portion of its revenue, which poses a risk if these customers cease engagement or fail to renew agreements [82]. - The company faces significant competition in the childhood education sector, which may lead to pricing pressure and loss of market share [68]. - The ability to attract and retain users and increase spending on digital content is critical for sustaining revenue growth, which may materially affect financial performance [59]. - User dissatisfaction with educational content could negatively affect user engagement and increase acquisition costs [60]. - The company’s results of operations are subject to seasonal fluctuations, with higher revenues typically seen in the first and third quarters [110]. - The trading price of the company's ADSs has been volatile, influenced by both market factors and specific operational issues [222]. - Future increases in inflation and labor costs in the PRC may materially affect the company's profitability unless costs can be passed on to customers [211]. Operational Risks - The company relies on contractual arrangements with Shanghai Jinxin for operations in China, which may not provide the same level of control as direct ownership, posing operational risks [54]. - The company must maintain strong relationships with business partners, including publishers and telecom operators, to ensure effective distribution and promotion of its products [83]. - The company faces challenges in developing and introducing new features to its educational content to meet changing market preferences in a timely manner [84]. - The integration of technology with education remains a relatively new concept in China, which may limit user acceptance and market growth [85]. - The company relies on mainstream telecom operators for app distribution, and changes in their policies could materially affect business operations [96]. - The company utilizes third-party cloud providers for data storage, and any breaches in security measures could lead to loss of users and reputational damage [92]. - The company’s IT infrastructure is vital for operations, and any disruptions could negatively impact user satisfaction and retention [94]. - The company does not currently have business insurance coverage, exposing it to significant costs and potential disruptions [118]. - The company may face legal disputes related to potential infringement of third-party intellectual property rights, which could adversely impact its financial condition and reputation [99]. - The company relies on key operating metrics, such as the number of paying users, to evaluate performance, and inaccuracies in these metrics could harm its reputation [114]. - The company plans to enhance collaboration with major telecom operators and hardware manufacturers to improve app distribution and increase online advertising efforts [98]. - Increased labor costs in China are expected, with the average wage for employees rising, which may adversely affect profitability if revenues do not increase correspondingly [128]. - The company faces stricter regulatory requirements regarding labor contracts and employee benefits, which could impact operational flexibility and costs [129]. - The performance of the company's business is heavily reliant on the internet infrastructure and telecommunications networks in China, with potential adverse effects from rising service costs [131]. - The company may face significant risks if identified as a "Commission-Identified Issuer," which could lead to trading prohibitions on U.S. exchanges for two consecutive years [218]. - Recent litigation and negative publicity surrounding China-based companies have negatively impacted stock prices, which could also affect the company's ADSs [219]. - Heightened U.S.-China trade tensions and new regulations could adversely affect the company's ability to raise capital and the trading price of its shares and ADSs [220]. - Any unfavorable government policies on international trade could impact the demand for the company's products and services, affecting its competitive position [221]. Currency and Tax Risks - Fluctuations in exchange rates, particularly the Renminbi against the U.S. dollar, could materially affect the company's operations and investment value [193]. - Significant appreciation of the Renminbi could adversely impact the amount received from converting U.S. dollars into Renminbi for operations [194]. - Limited hedging options in China may prevent the company from adequately mitigating foreign currency exchange risks [195]. - If classified as a PRC resident enterprise, the company could face a 25% tax on global income, significantly reducing net income and affecting dividends to non-resident shareholders [189]. - The company believes it is not a PRC resident enterprise, but uncertainties remain regarding tax authority determinations, which could lead to unfavorable tax consequences [190]. - Indirect transfers of equity interests by non-PRC holding companies may be re-characterized as direct transfers, subjecting gains to PRC enterprise income tax [191]. - Future private equity financing transactions may expose the company and non-resident enterprises to filing obligations or taxation under PRC tax regulations, impacting financial condition [192]. - The limit for total foreign debt of Shanghai Jinxin is set at three times its respective net assets, impacting financing options [206]. - The PRC government may impose restrictions on access to foreign currencies for current account transactions, affecting dividend payments [210]. - Governmental control of currency conversion may restrict the company's ability to utilize revenues effectively and affect investment value [210].

Financial Performance - Revenues from consolidated affiliated entities accounted for 78.9%, 80.4%, and 80.0% of total revenues for the years ended December 31, 2022, 2023, and 2024, respectively [28]. - The total revenues for the year ended December 31, 2024, amounted to RMB 1,466.7 million, a slight decrease from RMB 1,498.0 million in 2023 [52]. - The net loss attributable to So-Young International Inc. for the year ended December 31, 2024, was RMB 589.5 million, compared to a net income of RMB 21.3 million in 2023 [52]. - The total operating expenses for the year ended December 31, 2024, were RMB 1,523.6 million, an increase from RMB 1,014.7 million in 2023 [52]. - Total revenues increased by 19.1% from RMB 1,257.9 million in 2022 to RMB 1,498.0 million in 2023, but decreased by 2.1% to RMB 1,466.7 million (US$200.9 million) in 2024 [69]. - Gross profit rose by 10.3% from RMB 864.6 million in 2022 to RMB 953.7 million in 2023, but fell by 5.7% to RMB 899.1 million (US$123.2 million) in 2024 [69]. - Gross margin decreased from 68.7% in 2022 to 63.7% in 2023, and further decreased to 61.3% in 2024 [69]. Cash Flow and Liquidity - Cash and cash equivalents increased to RMB 587,749,000 in 2024 from RMB 426,119,000 in 2023, reflecting a growth of about 37.9% [55][56]. - Net cash provided by operating activities was RMB (25,633,000) for the year ended December 31, 2024, compared to RMB (25,633,000) in 2023, indicating no change in operational cash flow [58]. - The company reported a net cash increase of RMB 213,229,000 in 2024, up from RMB 432,740,000 at the beginning of the year [58]. - The total amount due from Group companies was RMB 1,894,656,000 in 2024, a decrease from RMB 2,512,057,000 in 2023, reflecting a reduction of approximately 24.5% [55][56]. - The company reported a net cash used in investing activities of RMB 202,611 thousand for 2023, compared to a net cash provided of RMB 572,212 thousand in 2022, highlighting a shift in investment strategy [59]. - The company’s cash flow from operating activities improved significantly, with a net cash provided of RMB 22,501 thousand in 2023 compared to a net cash used of RMB 112,873 thousand in 2022, showing operational efficiency [59]. Regulatory Environment - The PCAOB was unable to inspect registered public accounting firms in mainland China and Hong Kong, which could affect the trading of the company's shares under the Holding Foreign Companies Accountable Act [38]. - The company may face significant risks related to regulatory approvals and oversight in China, which could adversely affect operations and share value [36]. - Regulatory compliance is critical, as failure to obtain necessary licenses and permits could disrupt operations and delay expansion plans [90]. - The PRC tax authorities may challenge the contractual arrangements, leading to additional tax liabilities that could negatively impact the company's financial condition [187]. - The Foreign Investment Law introduces uncertainties regarding the company's corporate structure and operations, which could affect compliance and governance [190]. - The PRC government's oversight could materially affect operations and the value of the company's ADSs [206]. Operational Risks - The company faces potential legal claims and regulatory investigations related to the medical information and services offered on its platform [70]. - The company faces risks related to the acquisition of Wuhan Miracle, including challenges in integration and potential unanticipated expenses [91]. - The integration of Wuhan Miracle may result in operational challenges and could impact the anticipated benefits of the acquisition [91]. - The company must navigate a complex regulatory environment for medical equipment, which poses challenges for product acceptance and market competition [92]. - The company faces risks related to geopolitical tensions, particularly between the United States and China, which could negatively impact its business operations [161]. Market and Competitive Landscape - The online medical aesthetic service market is highly competitive, with risks of losing market share if the company cannot compete effectively [121]. - Average fee rates for medical aesthetic treatments in China are expected to decline, which could adversely affect the company's profitability and financial condition [123]. - Negative market perception of the medical aesthetic industry could lead to reduced consumer confidence and demand for services [98]. - The company’s expansion strategies may be affected by competition, regulatory challenges, and the need to adapt to local market conditions [82]. Financial Structure and Taxation - Under the PRC Enterprise Income Tax Law, dividends paid by foreign-invested enterprises to foreign non-resident investors are subject to a 10% withholding tax [41]. - The hypothetical tax scenario indicates that a 25% tax on earnings and a 10% withholding tax could reduce net distributions to shareholders to 67.5% of pre-tax earnings [42]. - The classification as a resident enterprise in mainland China could lead to a 25% PRC enterprise income tax on global income for the company and its non-resident shareholders [224]. - If deemed a resident enterprise, the company may need to withhold a 10% tax on dividends paid to non-resident shareholders, including ADS holders [227]. - The company faces uncertainties regarding the indirect transfer of equity interests and potential re-characterization of such transfers as direct transfers subject to PRC enterprise income tax [228]. Corporate Governance and Management - The company relies on maintaining high-quality content to attract and retain users, which is essential for user engagement and competitive positioning [93]. - The company relies on key employees for its success, and failure to retain them could have a material adverse effect on its business [149]. - The company has implemented strict procedures to verify the qualifications of medical service providers, but cannot guarantee all providers are fully licensed [73]. - The company has raised substantial financing since its inception to support growth and may require additional capital for brand awareness, new services, geographic expansion, and acquisitions [156]. Cash Management and Financial Reporting - The company’s internal control over financial reporting was deemed effective as of December 31, 2024, by management and its independent registered public accounting firm [171]. - The company maintains limited business insurance coverage, which may expose it to substantial costs and resource diversion if uninsured risks materialize [155]. - The company recorded share-based compensation expenses of RMB 43.3 million, RMB 36.3 million, and RMB 32.7 million (US$4.5 million) for the years 2022, 2023, and 2024, respectively [169].