新利软件(08076) - 2025 - 中期业绩

Announcement Overview Announcement Overview and GEM Characteristics This announcement presents the unaudited interim results of Xinli Software (Group) Co., Ltd. for the six months ended June 30, 2025, highlighting GEM's higher investment risks for SMEs - This announcement presents the unaudited interim results of Xinli Software (Group) Co., Ltd. for the six months ended June 30, 2025[1] - GEM is positioned as a listing platform for small and medium-sized companies, carrying higher investment risks, potential market volatility, and no guarantee of high liquidity[2] - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited are not responsible for the accuracy or completeness of this announcement[2] Financial Performance Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the Group's revenue decreased by 27.2% year-on-year to RMB 18,201 thousand, but gross profit turned from loss to profit, and total loss and comprehensive expenses narrowed by 26.6% to RMB 7,655 thousand Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Sales Revenue | 18,201 | 25,009 | | Cost of Sales and Services | (18,114) | (25,443) | | Gross Profit/(Loss) | 87 | (434) | | Other Income | 93 | 224 | | Reversal of impairment loss on expected credit losses | 808 | – | | Other Gains and Losses | 671 | (524) | | Distribution and Selling Expenses | (3,027) | (2,670) | | Administrative Expenses | (5,774) | (6,503) | | Finance Costs | (513) | (519) | | Loss Before Tax | (7,655) | (10,426) | | Income Tax Expense | – | – | | Total Loss and Comprehensive Expenses for the Period | (7,655) | (10,426) | | Loss Per Share (Basic) | (0.58) | (0.79) | | Loss Per Share (Diluted) | (0.58) | (0.79) | - Sales revenue decreased by 27.2% year-on-year, primarily due to a decline in technical support service income[3][34] - Gross profit turned from a loss of RMB 434 thousand in the same period last year to a profit of RMB 87 thousand[3] - Total loss and comprehensive expenses for the period decreased by 26.6% year-on-year, narrowing from RMB 10,426 thousand to RMB 7,655 thousand[3][35] Consolidated Statement of Financial Position As of June 30, 2025, the Group's net assets decreased compared to December 31, 2024, mainly due to a reduction in bank balances and cash, though current liabilities also decreased Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Non-current Assets | | | | Property, Plant and Equipment | 7,601 | 7,934 | | Right-of-use Assets | 208 | 193 | | Current Assets | | | | Inventories – Finished Goods | 973 | 933 | | Trade and Other Receivables | 29,538 | 21,311 | | Contract Assets | 401 | 488 | | Financial Assets at Fair Value Through Profit or Loss | – | 189 | | Restricted Bank Deposits | 976 | 626 | | Bank Balances and Cash | 10,170 | 28,528 | | Current Liabilities | | | | Trade and Other Payables | 7,214 | 9,387 | | Amounts Due to Related Parties | 1,751 | 1,878 | | Borrowings | 1,000 | 1,000 | | Lease Liabilities | 85 | 73 | | Non-current Liabilities | | | | Borrowings | 27,899 | 28,291 | | Net Assets | 11,918 | 19,573 | | Total Equity | 11,918 | 19,573 | - Net assets decreased from RMB 19,573 thousand as of December 31, 2024, to RMB 11,918 thousand as of June 30, 2025[4] - Bank balances and cash significantly decreased from RMB 28,528 thousand as of December 31, 2024, to RMB 10,170 thousand as of June 30, 2025[4] - Trade and other receivables increased from RMB 21,311 thousand as of December 31, 2024, to RMB 29,538 thousand as of June 30, 2025[4] Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, the Group's total equity decreased due to the loss for the period and expiry of share options, leading to an expansion of accumulated losses Consolidated Statement of Changes in Equity (For the six months ended June 30) | Indicator | January 1, 2025 (thousand RMB) | Total Loss and Comprehensive Expenses for the Period (thousand RMB) | Share Options Lapsed (thousand RMB) | June 30, 2025 (thousand RMB) | | :--- | :--- | :--- | :--- | :--- | | Share Capital | 12,538 | – | – | 12,538 | | Share Premium | 179,132 | – | – | 179,132 | | Statutory Reserve | 3,917 | 62 | – | 3,979 | | Shareholders' Contribution | 6,641 | – | – | 6,641 | | Exchange Reserve | 5,217 | – | – | 5,217 | | Share-based Payment Reserve | 5,461 | – | (2,329) | 3,132 | | Accumulated Losses | (193,333) | (7,655) | 2,329 | (198,721) | | Total | 19,573 | (7,655) | – | 11,918 | - As of June 30, 2025, accumulated losses increased to RMB 198,721 thousand, compared to RMB 193,333 thousand as of January 1, 2024[5] - Total loss and comprehensive expenses for the period amounted to RMB 7,655 thousand[5] - Lapse of share options resulted in a RMB 2,329 thousand reduction in share-based payment reserve and a corresponding reduction in accumulated losses[5] Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, net cash used in operating activities decreased, but total cash and cash equivalents still showed a net decrease Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Indicator | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (17,768) | (23,060) | | Net Cash From Investing Activities | 44 | 60 | | Net Cash (Used in)/From Financing Activities | (634) | 857 | | Net Decrease in Cash and Cash Equivalents | (18,358) | (22,143) | | Cash and Cash Equivalents at Beginning of Period | 28,528 | 35,107 | | Cash and Cash Equivalents at End of Period | 10,170 | 12,964 | - Net cash used in operating activities decreased from RMB 23,060 thousand in the same period of 2024 to RMB 17,768 thousand in 2025[7] - Cash and cash equivalents at the end of the period were RMB 10,170 thousand, a significant decrease from RMB 28,528 thousand at the beginning of the period[7] Notes to the Financial Statements 1. General Information This note outlines the basis of preparation for the Group's unaudited condensed interim financial statements, adhering to GEM Listing Rules, IAS 34, and IFRS, with RMB as the functional currency - Financial statements are prepared in accordance with Chapter 18 of the GEM Listing Rules, IAS 34, and IFRS[8] - The Group's functional currency is RMB[9] - The adoption of new IFRS had no significant impact on the Group's condensed consolidated financial statements for the period[10] 2. Revenue and Operating Segments The Group's revenue is segmented into software products, hardware products, and technical support services, with the latter being the primary source but experiencing a significant decline this period; all revenue and non-current assets originate from mainland China - The Group's reportable and operating segments include sales of software products, sales of hardware products, and provision of technical support services[12][14] Revenue and Segment Results (For the six months ended June 30, 2025) | Segment | Sales Revenue (thousand RMB) | Segment Results (thousand RMB) | | :--- | :--- | :--- | | Software Products | 536 | (807) | | Hardware Products | 1,424 | (67) | | Technical Support Services | 16,241 | (5,332) | | Total | 18,201 | (6,206) | Revenue and Segment Results (For the six months ended June 30, 2024) | Segment | Sales Revenue (thousand RMB) | Segment Results (thousand RMB) | | :--- | :--- | :--- | | Software Products | 573 | (1,196) | | Hardware Products | 947 | (762) | | Technical Support Services | 23,489 | (5,887) | | Total | 25,009 | (7,845) | - All the Group's sales revenue is derived from customers in mainland China, and all non-current assets are located in China[18][19] 3. Other Income The Group's other income primarily comprises interest income and other miscellaneous income, totaling RMB 93 thousand for the six months ended June 30, 2025, a decrease from the prior year Other Income (For the six months ended June 30) | Category | 2025 (thousand RMB) | 2024 (thousand RMB) | | :--- | :--- | :--- | | Interest Income | 59 | 78 | | Others | 34 | 146 | | Total | 93 | 224 | - Total other income decreased from RMB 224 thousand in the same period of 2024 to RMB 93 thousand in 2025[20] 4. Income Tax Expense The Group's Chinese subsidiaries are subject to varying corporate income tax rates, with Hangzhou Xinli Technology Co., Ltd. enjoying a 15% preferential rate as a high-tech enterprise, while others are at 25%; no taxable profit was generated in the current or prior period, resulting in no income tax expense - Hangzhou Xinli Technology Co., Ltd., as a high-tech enterprise, enjoys a 15% preferential corporate income tax rate, extended until 2025[21] - Hangzhou Xinli Software Co., Ltd. and Xinyintong Technology Co., Ltd. are subject to an applicable tax rate of 25%[21] - For the six months ended June 30, 2025, and 2024, the Group generated no taxable profit in China or Hong Kong, thus no income tax expense was provided[21] 5. Loss Per Share Basic and diluted loss per share for the period was RMB 0.58 cents, narrowing from RMB 0.79 cents in the prior year, primarily due to a reduction in loss attributable to owners of the Company Loss Per Share Calculation (For the six months ended June 30) | Indicator | 2025 (thousand RMB/thousand shares) | 2024 (thousand RMB/thousand shares) | | :--- | :--- | :--- | | Loss Attributable to Owners of the Company for the Period | (7,655) | (10,426) | | Number of Ordinary Shares | 1,317,240 | 1,317,240 | | Basic/Diluted Loss Per Share (RMB cents) | (0.58) | (0.79) | - The calculation of diluted loss per share did not assume the exercise of outstanding share options, as their exercise price was higher than the average market price[22] 6. Dividends The Board of Directors does not recommend the payment of any dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of any dividend for the six months ended June 30, 2025 (2024: nil)[23] 7. Trade and Other Receivables As of June 30, 2025, the Group's trade and other receivables totaled RMB 29,538 thousand, an increase from December 31, 2024; trade receivables overdue by 90 days or more amounted to RMB 2,678 thousand, but are still considered fully recoverable due to debtors' good financial standing Trade and Other Receivables (As of June 30, 2025) | Category | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Trade Receivables (net of allowance for credit losses) | 17,816 | 14,925 | | Other Receivables, Prepayments and Deposits | 11,722 | 6,386 | | Total | 29,538 | 21,311 | Ageing Analysis of Trade Receivables (net of allowance for credit losses) | Ageing | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | 0 to 120 days | 12,471 | 12,294 | | 121 to 180 days | 1,348 | 103 | | 181 to 365 days | 2,666 | 1,280 | | Over 365 days | 1,331 | 1,248 | | Total | 17,816 | 14,925 | - The general credit period ranges from 90 to 180 days after delivery or service provision[24] - As of June 30, 2025, trade receivables overdue by 90 days or more amounted to RMB 2,678 thousand, but are not considered in default due to the debtors' sound financial position[25] 8. Contract Assets Contract assets primarily represent the Group's right to consideration for completed but unbilled work, typically retention money, which is reclassified to trade receivables after the warranty period Contract Assets (As of June 30, 2025) | Category | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Retention Money Receivable | 401 | 488 | - Contract assets primarily represent the right to consideration for completed but unbilled work, typically retention money[26] - The warranty period ranges from one to two years, representing 5% to 10% of the contract value, and contract assets are reclassified to trade receivables upon the end of the warranty period[26] 9. Trade and Other Payables As of June 30, 2025, the Group's trade and other payables totaled RMB 7,214 thousand, a decrease from December 31, 2024, mainly due to reduced staff salaries payable and other domestic taxes payable Trade and Other Payables (As of June 30, 2025) | Category | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Trade Payables | 1,691 | 1,406 | | Staff Salaries Payable | 3,090 | 4,279 | | Other Domestic Taxes Payable | 369 | 727 | | Employee Reimbursements Payable | 193 | 757 | | Accrued Expenses | 613 | 610 | | Contract Liabilities | 324 | 430 | | Professional Service Fees Payable | – | 441 | | Others | 934 | 737 | | Total | 7,214 | 9,387 | Ageing Analysis of Trade Payables (As of reporting date) | Ageing | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Within 90 days | 1,203 | 87 | | 91 to 180 days | 378 | 814 | | 181 to 365 days | 10 | 160 | | Over 365 days | 100 | 345 | | Total | 1,691 | 1,406 | - The credit period for goods purchased ranges from 120 to 180 days[28] 10. Borrowings The Group's total borrowings amounted to RMB 28,899 thousand, primarily comprising unsecured related party loans and unsecured bank loans, with related party loans mainly from Mr. Xiong Rongli, mostly long-term, at effective interest rates between 3.69% and 4.14% Total Borrowings (As of June 30, 2025) | Category | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Fixed-rate borrowings: | | | | Unsecured Related Party Borrowings | 27,899 | 28,291 | | Unsecured Bank Borrowings | 1,000 | 1,000 | | Total | 28,899 | 29,291 | Borrowings Repayment Schedule Analysis | Repayment Period | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Within one year | 1,000 | 1,000 | | Over two years but not exceeding five years | 27,899 | 1,197 | | Over five years | – | 27,094 | | Total | 28,899 | 29,291 | - Related party borrowings are primarily provided by Mr. Xiong Rongli, with effective interest rates ranging from 3.69% – 4.14%[29] - Bank borrowings have an effective interest rate of 3.95%, utilizing a secured bank credit facility of RMB 1,000,000[31][32] 11. Share Capital The Company's authorized share capital is 10,000,000 thousand shares, with 1,317,240 thousand issued and fully paid shares, each with a par value of HKD 0.01, equivalent to RMB 12,538 thousand Share Capital Structure (As of June 30, 2025) | Category | Number of Shares (thousand shares) | Amount (thousand HKD) | Amount (thousand RMB) | | :--- | :--- | :--- | :--- | | Authorized Share Capital | 10,000,000 | 100,000 | 95,187 | | Issued and Fully Paid Share Capital | 1,317,240 | 13,173 | 12,538 | - Ordinary shares have a par value of HKD 0.01 each, and both authorized and issued share capital remained unchanged during the reporting period[33] Management Discussion and Analysis Financial Review and Performance The Group's sales revenue decreased by 27.2% year-on-year in H1 2025, mainly due to reduced technical support services; despite increased distribution and selling expenses, loss for the period narrowed by 26.6% due to lower staff costs and impairment loss reversals - Sales revenue was approximately RMB 18,201,000, a 27.2% decrease year-on-year, primarily due to a decline in technical support service income[34] - Cost of sales was approximately RMB 16,241,000, a 30.9% decrease year-on-year, mainly due to lower staff costs[34] - Administrative expenses decreased by 11.2% to RMB 5,774,000, primarily due to lower staff salaries and welfare expenses[34] - Distribution and selling expenses increased by 13.4% to RMB 3,027,000, mainly due to higher staff expenses and business development costs[34] - Loss for the period was approximately RMB 7,655,000, a 26.6% decrease year-on-year, mainly attributable to reversal of impairment losses, increased exchange gains, and reduced administrative expenses[35] Overall Business Performance In H1 2025, the FinTech and services industry faced a complex economic environment and intense competition, leading to reduced capital expenditure from financial clients; the Group responded with product innovation, client expansion, and cost-efficiency measures, making progress in payment scenario integration and cooperation with state-owned banks - The FinTech and services industry remained under pressure in H1 2025, affected by global inflation, geopolitical conflicts, and insufficient domestic consumer confidence, leading to reduced capital expenditure from financial clients[36] - The Group actively addressed challenges by exploring product innovation, client expansion, and business model optimization, while also initiating cost reduction and efficiency improvement measures[36] - In payment scenario integration, the Group upgraded the "One-Code Pass" ecosystem for commercial districts, "Face-Scan + Contactless Payment" systems for smart catering and scenic areas, and implemented full-chain management and payment solutions for the elderly care and pet industries[36] - Regarding client expansion, the Group broadened its cooperation with the five major state-owned banks and added 2 city commercial banks and 3 rural commercial banks as partners[37] - In H1, 18 operational projects were launched in provinces including Hebei, Hubei, Anhui, Guangxi, Guangdong, Ningxia, and Jiangsu, with further progress expected in H2 to generate sustained revenue[37] Future Outlook The Group anticipates industry demand to gradually recover, driven by national digital economy policies and technological upgrades; H2 will focus on new product R&D, business expansion, client development, and scenario implementation, while maintaining strict cost control and risk prevention - National digital economy development priorities are expected to drive industry demand recovery, leading to a period of sustainable development[38] - Adhering to the core value of "Seeking Profit from Innovation," the Group's H2 focus will be on new product R&D, new business expansion, new client development, and new scenario implementation[38] - The Group will continue to strictly control costs and strengthen overall and business-line specific risk monitoring and prevention[38] Liquidity, Financial Resources, and Gearing Ratio The Group's liquidity primarily stems from operating cash income and borrowings; as of June 30, 2025, cash and cash equivalents decreased, but the current ratio remained stable, while the gearing ratio increased, and prepayments to employees significantly rose - The Group's working capital sources are cash income from business operations and borrowings, with sufficient funds to meet working capital needs[39] - As of June 30, 2025, cash and cash equivalents were approximately RMB 10,170,000, a decrease from RMB 28,528,000 as of December 31, 2024[39] - The current ratio (total current assets divided by total current liabilities) was approximately 4.2 times, consistent with December 31, 2024[39] Outstanding Borrowings (As of June 30, 2025) | Category | June 30, 2025 (thousand RMB) | December 31, 2024 (thousand RMB) | | :--- | :--- | :--- | | Fixed-rate borrowings: | | | | Unsecured Related Party Borrowings | 27,899 | 28,291 | | Unsecured Bank Borrowings | 1,000 | 1,000 | | Total | 28,899 | 29,291 | - The gearing ratio (total liabilities divided by total assets) was approximately 76.1%, an increase from 67.5% as of December 31, 2024[42] - Prepayments to employees were approximately RMB 8,054,000, a significant increase from RMB 2,252,000 as of December 31, 2024, primarily for business-related expenses[42] Other Information Acquisitions and Disposals of Subsidiaries and Associates The Group did not undertake any significant acquisitions or disposals of subsidiaries or associates during the reporting period - The Group did not undertake any significant acquisitions or disposals of subsidiaries or associates during the reporting period[43] Employee Information As of June 30, 2025, the Group's employee count decreased to 401, with a corresponding reduction in staff costs; the Group operates a share option scheme to incentivize employees - As of June 30, 2025, the Group employed 401 staff, a decrease from 649 in the same period of 2024[44] - Staff costs for the reporting period were approximately RMB 20,026,000, a decrease from RMB 28,835,000 in the same period of 2024[44] - The Group has adopted a share option scheme, under which certain employees were granted share options[45] Pledged Assets As of June 30, 2025, the Group's self-owned property in Hangzhou, with a net book value of approximately RMB 7,368,000, was pledged for bank financing - The Group's self-owned property in Hangzhou, with a total net book value of approximately RMB 7,368,000, was pledged for bank financing[46] Details of Future Plans for Material Investments or Capital Asset Acquisitions Details of the Group's future plans for material investments or capital asset acquisitions are outlined in the Company's prospectus dated August 30, 2001 - Details of future plans for material investments or capital asset acquisitions are listed in the Company's prospectus dated August 30, 2001[47] Exchange Rate Risk The vast majority of the Group's revenue-generating business is transacted in RMB, leading the Directors to consider foreign exchange risk to be very low - The vast majority of the Group's revenue-generating business is transacted in RMB, and the Directors consider foreign exchange risk to be very low[48] Contingent Liabilities As of June 30, 2025, the Group had no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities[49] New Product Prospects Discussion regarding new product prospects can be found in the business review section of the Management Discussion and Analysis - Discussion regarding new product prospects can be found in the business review section of the Management Discussion and Analysis[50] Shareholding Structure and Directors' Interests Major Shareholders' Interests As of June 30, 2025, Goldcorp Industrial Limited and its associates (including Mr. Xiong Rongli and Ms. Li Qiling) are the Company's major shareholders, holding over 10% of shares; Ms. Yao Bin and Ms. Zhou Cuilian are also deemed to have significant interests due to spousal relationships Major Shareholders' Interests in the Company's Ordinary Shares (As of June 30, 2025) | Shareholder Name | Capacity/Nature of Interest | Number of Shares Held (Long Position) | Percentage of Share Capital Held | | :--- | :--- | :--- | :--- | | Goldcorp Industrial Limited | Beneficial Owner | 136,307,500 | 10.35% | | Great Song Enterprises Limited | Interest of Controlled Corporation | 136,307,500 | 10.35% | | Mr. Xiong Rongli | Interest of Controlled Corporation | 136,307,500 | 10.35% | | Mr. Xiong Rongli | Beneficial Owner | 38,532,500 | 2.92% | | Ms. Li Qiling | Interest of Controlled Corporation | 136,307,500 | 10.35% | | Ms. Yao Bin | Spouse's Interest | 174,840,000 | 13.27% | | Mr. Lin Xuexin | Beneficial Owner | 118,560,000 | 9.00% | | Ms. Zhou Cuilian | Spouse's Interest | 120,003,382 | 9.11% | | Mr. Li Dong | Beneficial Owner | 65,860,000 | 5.00% | | Ms. Lei Ying | Spouse's Interest | 69,409,300 | 5.27% | - Goldcorp Industrial Limited is jointly held by Mr. Xiong Rongli and Great Song Enterprises Limited, with Great Song Enterprises Limited wholly owned by Ms. Li Qiling[53] - Ms. Yao Bin is the wife of Mr. Xiong Rongli and is deemed to have an interest in Mr. Xiong Rongli's interests under the Securities and Futures Ordinance[53] Directors' and Chief Executive's Interests As of June 30, 2025, several directors held interests in the Company's ordinary shares and share options; the Company has a share option scheme with updated authorization limits, and while no options were granted or exercised this period, some have lapsed Directors' Interests in the Company's Securities (As of June 30, 2025) | Director Name | Capacity/Nature of Interest | Ordinary Share Interests | Interests in Underlying Shares of Share Options | Total Interests | Percentage of Total Interests | | :--- | :--- | :--- | :--- | :--- | :--- | | Mr. Lin Xuexin | Beneficial Owner | 118,560,000 | 1,443,382 | 120,003,382 | 9.11% | | Mr. Li Dong | Beneficial Owner | 65,860,000 | 3,549,300 | 69,409,300 | 5.27% | | Mr. Xiong Ying | Beneficial Owner | 14,547,500 | 1,567,608 | 16,115,108 | 1.22% | | Mr. Pu Bingrong | Beneficial Owner | – | 307,606 | 307,606 | 0.02% | - The Company's share option scheme was adopted on August 27, 2001, and replaced by a new scheme upon its expiry on August 27, 2011, primarily to reward directors and eligible employees[55] - The share option scheme's authorization limit has been updated multiple times, most recently on June 30, 2025, allowing subscription for a total of 131,724,000 shares, representing approximately 10% of the issued share capital[56] - No share options were granted or exercised during the six months ended June 30, 2025[62] Changes in Outstanding Share Options (As of June 30, 2025) | Director Name | Exercise Period | Adjusted Exercise Price (HKD) | Number of Outstanding Share Options as of Jan 1, 2025 | Number of Share Options Lapsed During Period | Number of Outstanding Share Options as of June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Xiong Ying | 2015/5/15-2025/5/14 | 0.3635 | 2,247,890 | (2,247,890) | – | | Lin Xuexin | 2015/5/15-2025/5/14 | 0.3635 | 3,549,300 | (3,549,300) | – | | Li Dong | 2015/5/15-2025/5/14 | 0.3635 | 1,774,650 | (1,774,650) | – | | Continuing Contract Employees (excluding Directors) | 2015/5/15-2025/5/14 | 0.3635 | 6,861,980 | (6,681,980) | – | | Xiong Ying | 2017/4/7-2027/4/6 | 0.1538 | 1,567,608 | – | 1,567,608 | | Lin Xuexin | 2017/4/7-2027/4/6 | 0.1538 | 1,443,382 | – | 1,443,382 | | Li Dong | 2017/4/7-2027/4/6 | 0.1538 | 3,549,300 | – | 3,549,300 | | Pu Bingrong | 2017/4/7-2027/4/6 | 0.1538 | 307,606 | – | 307,606 | | Continuing Contract Employees (excluding Directors) | 2017/4/7-2027/4/6 | 0.1538 | 9,109,870 | – | 9,109,870 | | Consultants | 2017/4/7-2027/4/6 | 0.1538 | 32,422,855 | – | 32,422,855 | | Total | | | 62,834,441 | (14,433,820) | 48,400,621 | Corporate Governance and Other Information Dealings in Listed Securities Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the reporting period - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[64] Competition and Conflicts of Interest For the six months ended June 30, 2025, no directors, management shareholders, major shareholders, or their associates engaged in any business competing with or potentially conflicting with the Group's business - No directors, management shareholders, major shareholders, or any of their respective associates engaged in any business competing or likely to compete with the Group's business or had any other conflicts of interest with the Group[65] Corporate Governance Practices As of the announcement date, the Company has complied with the applicable code provisions of the Corporate Governance Code in Appendix C1 of the GEM Listing Rules, except for the CEO position being vacant since November 1, 2022, which constitutes a deviation - The Company has complied with the applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the GEM Listing Rules[66] - The Chief Executive Officer position has been vacant since Mr. Lin Xuexin's resignation on November 1, 2022, constituting a deviation from code provision C.2.1[66] Directors' Securities Transactions For the six months ended June 30, 2025, the Company complied with GEM Listing Rules regarding directors' securities transactions, with no breaches of the code of conduct identified - The Company has complied with Rules 5.48 to 5.67 of the GEM Listing Rules regarding directors' securities transactions[67] - The Company is not aware of any non-compliance with the required procedures for directors' securities transactions, nor any breaches of the code of conduct[67] Remuneration Committee The Company's Remuneration Committee, established in November 2005, is responsible for reviewing and recommending remuneration policies for directors and senior management, chaired by Mr. Chen Zengwu - The Remuneration Committee was established in November 2005, with its primary function to review and make recommendations on the remuneration policy for directors and senior management[68] - The Remuneration Committee is chaired by Mr. Chen Zengwu, with other members including Mr. Lin Xuexin, Mr. Pu Bingrong, and Ms. Chen Xin'ai[68] Nomination Committee The Company's Nomination Committee, established in March 2012, is responsible for formulating nomination policies, recommending director nominations, appointments, and board succession arrangements, and developing and reviewing the Board Diversity Policy, chaired by Mr. Lin Xuexin - The Nomination Committee was established in March 2012, with its primary functions to formulate nomination policies, make recommendations on the nomination and appointment of directors and board succession arrangements, and develop and review the "Board Diversity Policy"[69] - The Nomination Committee is chaired by Mr. Lin Xuexin, with other members including Mr. Pu Bingrong, Mr. Chen Zengwu, and Ms. Chen Xin'ai[69] Audit and Risk Management Committee The Company's Audit and Risk Management Committee, established in August 2001, reviews and oversees the Group's financial reporting, internal control, and risk management systems; the committee has reviewed the unaudited results for the period and found them compliant with applicable accounting standards - The Audit and Risk Management Committee was established on August 27, 2001, with its primary functions to review and oversee the Group's financial reporting process, internal control system, and risk management system[70] - The Committee is chaired by Mr. Chen Zengwu, with other members including Mr. Pu Bingrong and Ms. Chen Xin'ai, all of whom are independent non-executive directors[70] - The Committee has reviewed the Group's unaudited results for the six months ended June 30, 2025, and believes they are prepared in accordance with applicable accounting standards and requirements and are adequately disclosed[70] Board Members The Company's Board of Directors comprises executive directors including Lin Xuexin, Xiong Ying, Zang Jingjing, Li Dong, Cai Jin, and independent non-executive directors such as Pu Bingrong, Chen Xin'ai, and Chen Zengwu - Board members include executive directors Lin Xuexin, Xiong Ying, Zang Jingjing, Li Dong, Cai Jin[71] - Board members include independent non-executive directors Pu Bingrong, Chen Xin'ai, Chen Zengwu[71]