出门问问(02438) - 2025 - 中期业绩

Financial Highlights This section summarizes the company's key financial performance and financial position Key Financial Data For the six months ended June 30, 2025, revenue grew 10.0% to RMB178.9 million, loss narrowed 99.5% to RMB2.9 million, and adjusted net loss decreased 97.5%, nearing breakeven Key Financial Data for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change % | | :--- | :--- | :--- | :--- | | Revenue | 178,914 | 162,670 | 10.0% | | Gross Profit | 106,296 | 105,306 | 0.9% | | Loss for the Period | (2,898) | (578,756) | (99.5%) | | Adjusted Net Loss (Non-GAAP) | (1,408) | (55,855) | (97.5%) | Performance Review and Strategic Outlook This section reviews the company's operational performance, business segment results, and strategic outlook Overall Performance Overview In H1 2025, the company achieved robust performance growth with 10.0% revenue increase and significantly improved profitability - For the six months ended June 30, 2025, the Group's revenue was RMB178.9 million, representing a 10.0% year-on-year increase[8] Business Segment Performance AI software revenue decreased 21.7% due to cost control, while AI smart hardware revenue surged 64.8% from strategic investments and new products Revenue Change by Business Segment | Business Segment | 2025 (RMB '000) | 2024 (RMB '000) | Change % | | :--- | :--- | :--- | :--- | | AI Software Solutions | 80,640 | 103,025 | (21.7%) | | Smart Devices and Other Accessories | 98,274 | 59,645 | 64.8% | AI Software Solutions AI software revenue decreased 21.7% year-on-year, driven by proactive control of market spending and customer acquisition costs to maintain profitability - AI software business revenue was RMB80.6 million, representing a 21.7% year-on-year decrease[8] - The company actively controlled its market spending strategy and customer acquisition costs to address intensifying global industry competition and rising customer acquisition costs[8] Smart Devices and Other Accessories AI smart hardware revenue grew 64.8% to RMB98.3 million, driven by strategic market investments and 'TicNote' brand promotion, despite short-term gross margin fluctuations - AI smart hardware business revenue was RMB98.3 million, representing a 64.8% year-on-year increase[9] - In the first half of the year, the company increased strategic market investments and brand promotion for its new product "TicNote", while simultaneously optimizing its category inventory structure[9] Profitability Improvement Loss significantly narrowed by 99.5%, and adjusted net loss decreased 97.5% nearing breakeven, driven by the absence of fair value changes in preference shares and 'AI-driven organization' transformation - Loss for the period was RMB2.9 million, a 99.5% year-on-year decrease, primarily due to the absence of fair value changes in contingently redeemable preference and ordinary shares in H1 2025[11] - Adjusted net loss (non-GAAP measure) was RMB1.4 million, a 97.5% year-on-year decrease, approaching breakeven[11] - Profitability improvement was attributed to actively promoting an "AI-driven organization" transformation, deeply integrating AI Agents into core business processes and operational management systems to build "AI-native workflows"[11] Product Innovation and Ecosystem Development The company launched 'TicNote', the world's first Agentic AI hardware-software product, achieving sales breakthroughs and building an Agentic AI ecosystem centered on 'Shadow AI' - In April 2025, the company launched "TicNote", the world's first Agentic AI hardware-software integrated product, featuring the built-in AI Agent software "Shadow AI" which offers "AI recording with memory + proactive insights + proactive analysis + companion creation" functions[12][14] - TicNote quickly gained attention after its overseas debut and domestic launch, with global sales exceeding 10,000 units, ranking among the top sellers in relevant e-commerce categories[15] - Starting with TicNote, the company is building an Agentic AI ecosystem centered on "Shadow AI" and expanding into new product categories such as the TicSports treadmill series, TicNote Watch smartwatches, and TicNote Pods smart earphones[15] AI-driven Organizational Transformation The company integrated AI Agents into internal business processes, creating 'AI-native workflows' that significantly boosted per capita output efficiency by 80% - The company deeply integrated AI Agents into core business processes and operational management systems, building efficient, flexible, and self-evolving "AI-native workflows"[16] - During the reporting period, per capita revenue was approximately RMB978 thousand, an 80% increase compared to RMB542 thousand in the same period of 2024[16] Strategic Direction and Future Outlook The company maintains its hardware-software integration strategy and full-stack AI capabilities, evolving its business model to 'service+platform' and increasing AI Agent R&D in H2 - The company consistently adheres to its hardware-software integration strategy and the accumulation of full-stack AI capabilities, ranging from smartwatches to the general large model "Sequence Monkey" and AIGC matrix[17] - The company is driving the evolution of its business model from "product sales" to "service + platform" and expanding into To SMB and To PC businesses[17] - Looking ahead to H2 2025, the Group will continue to increase R&D investment in core AI Agent technologies, expanding Agentic AI product forms and scenario boundaries[18] Management Discussion and Analysis This section provides a detailed analysis of the company's financial performance, liquidity, and human resources Financial Performance Review This section details the company's H1 2025 financial performance, covering revenue, costs, gross profit, expenses, and adjusted net loss, with explanations for key changes Revenue Analysis Total revenue grew 10.0%, with AI software solutions revenue decreasing 21.7% due to cost control, and smart devices revenue increasing 64.8% from strategic investments and inventory optimization Revenue Breakdown by Major Product or Service Line | Product or Service Line | 2025 (RMB '000) | 2024 (RMB '000) | Change % | | :--- | :--- | :--- | :--- | | AI Software Solutions | 80,640 | 103,025 | (21.7%) | | Smart Devices and Other Accessories | 98,274 | 59,645 | 64.8% | | Total Revenue | 178,914 | 162,670 | 10.0% | - The decrease in AI software revenue was primarily due to the company's proactive control of market spending and customer acquisition costs for its AIGC software business, guided by profitability and long-term sustainable development[19] - The increase in AI hardware revenue was mainly due to the company's increased strategic market investments and simultaneous optimization of its category inventory structure[19] Cost of Sales and Gross Profit Cost of sales increased due to higher smart device revenue proportion. Gross profit slightly increased 0.9%, but gross margin decreased from 64.7% to 59.4%, also impacted by smart device revenue share - The increase in cost of sales was primarily due to the increased revenue contribution from smart devices and other accessories[20] Gross Profit and Gross Margin Change | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change % | | :--- | :--- | :--- | :--- | | Gross Profit | 106,296 | 105,306 | 0.9% | | Gross Margin | 59.4% | 64.7% | (5.3%) | - The decrease in gross margin was primarily due to the increased revenue contribution from smart devices and other accessories[21] Other Income and Net Loss Other income and net loss increased by RMB13.23 million in H1 2025, mainly due to the absence of prior year's financial asset fair value losses and exchange losses, and increased bank interest income - Other income and net loss for H1 2025 increased by RMB13.23 million compared to the same period last year[22] - Key reasons include the absence of fair value losses on financial assets measured at fair value through profit or loss (which occurred in the prior period), exchange gains in the current period due to the appreciation of the British Pound (compared to exchange losses in the prior period), and a year-on-year increase in bank wealth management and interest income[22] Operating Expenses Overall operating expenses decreased, with significant reductions in R&D, selling and marketing, and administrative expenses, driven by 'AI-driven organization' efficiency, revenue mix, and reduced listing expenses R&D Expenses R&D expenses decreased 31.9% to RMB38.0 million, primarily due to 'AI-driven organization' transformation, integrating AI Agents to boost R&D efficiency and reduce salary expenses R&D Expenses Change | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change % | | :--- | :--- | :--- | :--- | | Total R&D Expenses | 38,045 | 55,814 | (31.9%) | | Salaries | 21,400 | 46,400 | (53.9%) | | Direct Inputs (Cloud services and data fees, etc.) | 12,400 | 5,900 | 110.2% | - This was attributed to the Group's active promotion of an "AI-driven organization" transformation, deeply integrating AI Agents into core business processes and operational management systems, building efficient, flexible, and self-evolving "AI-native workflows" which significantly enhanced R&D efficiency[23] Selling and Marketing Expenses Selling and marketing expenses decreased 24.5% to RMB68.9 million, primarily due to revenue mix differences and reduced AIGC software solution service fees Selling and Marketing Expenses Change | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change % | | :--- | :--- | :--- | :--- | | Selling and Marketing Expenses | 68,879 | 91,291 | (24.5%) | - The decrease was mainly due to differences in revenue structure and reduced service fees for AIGC software solutions[24] Administrative Expenses Administrative expenses significantly decreased 76.6% to RMB13.1 million, primarily due to the absence of listing expenses in 2025 and reduced salary-related expenditures Administrative Expenses Change | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change % | | :--- | :--- | :--- | :--- | | Administrative Expenses | 13,087 | 55,881 | (76.6%) | - The decrease was mainly due to the absence of listing expenses in 2025, following the completion of the global offering in H1 2024, and reduced salary-related expenditures[25] Non-GAAP Measure: Adjusted Net Loss Adjusted net loss (non-GAAP) was RMB1.4 million, a significant 97.5% decrease, reflecting core operating performance by adjusting for non-cash or one-off items - Adjusted net loss (non-GAAP measure) is defined as loss for the period from continuing operations, adjusted for fair value changes in contingently redeemable preference and ordinary shares, share-based payments, and listing expenses[26] Reconciliation of Non-GAAP Financial Measure | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Loss for the Period | (2,898) | (578,756) | | Fair value changes in contingently redeemable preference and ordinary shares | — | 480,455 | | Share-based payments | 1,490 | 13,487 | | Listing expenses | — | 28,959 | | Adjusted Net Loss (Non-GAAP Measure) | (1,408) | (55,855) | - There were no fair value changes in contingently redeemable preference and ordinary shares in H1 2025, as they were automatically converted to equity upon the completion of the listing in 2024[26] Liquidity and Financial Resources The company maintains a healthy liquidity position with significantly increased cash and cash equivalents, a decreased gearing ratio, and a stable current ratio Cash and Cash Equivalents As of June 30, 2025, cash and cash equivalents significantly increased to approximately RMB254.0 million from RMB156.5 million at December 31, 2024 Cash and Cash Equivalents | Metric | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 254,000 | 156,500 | Financial Assets The company disposed of wealth management products measured at fair value through profit or loss, and financial assets at fair value through OCI decreased due to maturity of certificates of deposit - As of December 31, 2024, financial assets measured at fair value through profit or loss (wealth management products) had a fair value of RMB65.3 million, which were disposed of during the current reporting period[30] - The balance of financial assets measured at fair value through other comprehensive income decreased compared to the end of 2024, primarily due to the maturity of certificates of deposit held at the end of the prior year[30] Capital Structure and Bank Borrowings The company's capital structure is funded by various sources, with outstanding bank borrowings increasing to RMB41.0 million, all unsecured, fixed-rate, and repayable within one year - The Group funds its working capital, capital expenditures, and other liquidity needs through a combination of its cash and cash equivalents, cash flows from operations, bank financing, and net proceeds from the Company's initial public offering[31] Bank Borrowings | Metric | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Outstanding Bank Borrowings | 41,000 | 20,000 | Gearing Ratio and Net Current Assets As of June 30, 2025, the gearing ratio decreased to 36.3%, net current assets were RMB268.5 million, and the current ratio was 2.6, indicating reduced financial leverage and ample liquidity Gearing Ratio and Current Ratio | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing Ratio (Total Liabilities / Total Assets) | 36.3% | 42.1% | | Net Current Assets (RMB million) | 268.5 | 309.6 | | Current Ratio (Current Assets divided by Current Liabilities) | 2.6 | 2.5 | Contingent Liabilities As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[35] Human Resources As of June 30, 2025, the Group had 183 full-time employees and total staff costs of RMB41.9 million, with remuneration based on performance and experience, offering comprehensive training and benefits Human Resources Overview | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of Full-time Employees | 183 | 222 | | Total Staff Costs (for the six months ended June 30, 2025) | RMB41.9 million | - | - The remuneration policy is formulated based on employee performance and experience, aligning with salary trends in Mainland China and Hong Kong, and includes benefits such as annual bonuses, insurance, medical coverage, and share options[37] - The Group has integrated a comprehensive employee training approach, including new employee onboarding, core competency development, strengthening internal training teams, and key talent development programs[38] Financial Risk Management The Group faces credit, liquidity, interest rate, and currency risks in its daily operations and has established corresponding financial risk management policies - The Group faces credit, liquidity, interest rate, and currency risks in the ordinary course of its business[39] Credit Risk Credit risk primarily arises from trade and other receivables, but is considered low due to high credit-rated counterparties for cash and bills receivable - Credit risk primarily arises from trade and other receivables[41] - Credit risk is considered low because counterparties for cash and cash equivalents and bills receivable are banks and financial institutions with high credit ratings[41] Liquidity Risk The Group manages liquidity risk by regularly monitoring needs, maintaining sufficient cash reserves and marketable securities, and securing committed credit facilities from major financial institutions - The Group's policy is to regularly monitor its liquidity requirements and compliance with loan covenants, ensuring it maintains sufficient cash reserves and readily marketable securities, and has adequate committed credit facilities from major financial institutions to meet its short-term and long-term liquidity needs[42] Interest Rate Risk Interest rate risk primarily stems from bank borrowings, whose fair value or future cash flows may fluctuate due to market interest rate changes - The Group's interest rate risk primarily arises from bank borrowings[43] Currency Risk Currency risk primarily arises from foreign currency-denominated receivables, payables, and cash balances, involving USD, EUR, TWD, GBP, HKD, SGD, and AUD, with no derivative hedging during the period - The Group's currency risk primarily arises from sales and purchases denominated in foreign currencies (i.e., currencies other than the functional currency of the operations involved in the transaction) that generate receivables, payables, and cash balances[44] - The currencies giving rise to such risk are mainly USD, EUR, TWD, GBP, HKD, SGD, and AUD[44] - For the six months ended June 30, 2025, the Group did not purchase any derivative instruments for hedging purposes[44] Other Information This section covers interim dividends, corporate governance, dealings in listed securities, and subsequent events Interim Dividend The Board does not recommend paying any interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: RMB nil)[45] Corporate Governance The company is committed to high corporate governance standards and has adopted a corporate governance code. Despite the Chairman and CEO roles being combined, the Board believes this benefits business and management without compromising power balance - The Company has adopted the Corporate Governance Code as its own corporate governance code and complied with all applicable code provisions during the reporting period, except for the non-segregation of the roles of Chairman and Chief Executive Officer[46] - Dr. Li Zhifei currently serves as both the Chairman and Chief Executive Officer of the Company, and the Board believes this arrangement benefits the Group's business prospects and management, ensuring consistent leadership for the Group[46] Dealings in Listed Securities During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities, and as of June 30, 2025, the company held no treasury shares - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the reporting period[47] - As of June 30, 2025, the Company held no treasury shares[47] Subsequent Events and Review As of the announcement date, no significant events after June 30, 2025, materially impacted the Group's operations and financial performance. These interim results are unaudited but reviewed by the Audit Committee - As of June 30, 2025, and up to the date of this announcement, no significant events have occurred that would materially impact the Group's operations and financial performance[49] - The Group's unaudited consolidated results for the six months ended June 30, 2025, have not been reviewed by external auditors but have been reviewed by the Company's Audit Committee[50] Consolidated Financial Statements This section presents the company's consolidated statement of profit or loss and other comprehensive income, and consolidated statement of financial position Consolidated Statement of Profit or Loss and Other Comprehensive Income This statement presents revenue, cost of sales, gross profit, expenses, and loss for the six months ended June 30, 2025, reflecting a significant improvement in profitability Summary of Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 178,914 | 162,670 | | Cost of Sales | (72,618) | (57,364) | | Gross Profit | 106,296 | 105,306 | | Other income and net loss | 12,531 | (694) | | R&D Expenses | (38,045) | (55,814) | | Selling and Marketing Expenses | (68,879) | (91,291) | | Administrative Expenses | (13,087) | (55,881) | | Loss from Operations | (1,837) | (98,119) | | Loss Before Tax | (2,898) | (578,745) | | Loss for the Period | (2,898) | (578,756) | | Total Comprehensive Income for the Period Attributable to Equity Holders of the Company | (7,177) | (584,384) | | Loss Per Share (Basic and Diluted) | (0.00) | (0.55) | Consolidated Statement of Financial Position This statement presents assets, liabilities, and equity as of June 30, 2025, showing increased non-current assets, decreased total current assets but increased cash, reduced current liabilities, and stable net assets Summary of Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Non-current Assets | | | | Property, Plant and Equipment | 29,358 | 2,607 | | Right-of-use Assets | 5,894 | 7,885 | | Intangible Assets | 5,678 | 5,199 | | Current Assets | | | | Inventories | 68,090 | 66,874 | | Trade Receivables | 44,791 | 48,292 | | Prepayments, Deposits and Other Receivables | 35,110 | 48,821 | | Financial Assets at Fair Value Through Profit or Loss | — | 65,319 | | Financial Assets at Fair Value Through Other Comprehensive Income | 28,930 | 122,400 | | Cash and Cash Equivalents | 253,956 | 156,535 | | Current Liabilities | | | | Trade Payables | 20,232 | 33,659 | | Other Payables and Accrued Expenses | 38,730 | 67,719 | | Bank Borrowings | 40,971 | 20,000 | | Net Assets | 301,227 | 304,298 | Notes to the Unaudited Interim Financial Report This section provides detailed notes and disclosures supporting the unaudited interim financial statements, covering accounting policies, revenue, expenses, and asset/liability details Basis of Preparation and Accounting Policies This interim financial report is prepared in accordance with HKEX Listing Rules and IAS 34, using the same accounting policies as 2024 annual financial statements, with no significant changes except for IAS 21 (Revised) - This interim financial report has been prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, including compliance with International Accounting Standard 34 "Interim Financial Reporting" issued by the International Accounting Standards Board[57] - Except for the changes in accounting policies expected to be reflected in the 2024 annual financial statements, the interim financial report has been prepared in accordance with the same accounting policies adopted in the 2024 annual financial statements[57] - The application of IAS 21 (Revised) "The Effects of Changes in Foreign Exchange Rates — Lack of Exchangeability" had no significant impact on the preparation or presentation of the Group's results and financial position for the current period[59] Revenue and Segment Reporting This section details revenue segmentation by major product/service lines, timing of recognition, and customer geographical location, showing AI software solutions and smart devices as key business segments Revenue Breakdown Revenue is segmented by AI software solutions and smart devices, further broken down by revenue recognition timing (at a point in time or over time), reflecting the revenue composition of each business segment Revenue Breakdown from Contracts with Customers by Major Product or Service Line | Product or Service Line | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | AI Software Solutions | 80,640 | 103,025 | | Smart Devices and Other Accessories | 98,274 | 59,645 | | Total | 178,914 | 162,670 | Revenue Breakdown by Timing of Revenue Recognition (for the six months ended June 30, 2025) | Timing of Revenue Recognition | AI Software Solutions (RMB '000) | Smart Devices and Other Accessories (RMB '000) | Total (RMB '000) | | :--- | :--- | :--- | :--- | | At a point in time | 29,356 | 98,274 | 127,630 | | Over time | 51,284 | — | 51,284 | | Total | 80,640 | 98,274 | 178,914 | Geographical Information Customer revenue sources are distributed across Mainland China, Germany, the UK, and other regions, with Mainland China revenue decreasing while other regions showed significant growth Geographical Location of Revenue from External Customers | Region | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Mainland China | 76,373 | 91,935 | | Germany | 18,775 | 9,848 | | United Kingdom | 17,901 | 12,297 | | Other Countries or Regions | 65,865 | 48,590 | | Total | 178,914 | 162,670 | Breakdown of Loss Before Tax This section provides a detailed breakdown of loss before tax, including finance costs, staff costs, and other operating-related items, explaining specific amounts and changes Finance Costs Finance costs increased from RMB171 thousand in 2024 to RMB1,061 thousand in 2025, primarily due to increased interest on bank borrowings and lease liabilities Finance Costs Change | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Interest on bank borrowings | 925 | 71 | | Interest on lease liabilities | 136 | 100 | | Total | 1,061 | 171 | Staff Costs Total staff costs decreased from RMB80,989 thousand in 2024 to RMB41,929 thousand in 2025, primarily due to reduced salaries and equity-settled share-based payment expenses Staff Costs Change | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Salaries, wages and other benefits | 40,439 | 67,502 | | Equity-settled share-based payment expenses | 1,490 | 13,487 | | Total | 41,929 | 80,989 | Other Items Other items include depreciation, intangible asset amortization, trade receivables impairment loss, listing expenses, and warranty provisions. H1 2025 had no listing expenses, and trade receivables impairment loss increased Other Items Change | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Depreciation expenses — Property, plant and equipment | 690 | 721 | | Depreciation expenses — Right-of-use assets | 1,991 | 3,217 | | Amortization cost of intangible assets | 1,725 | 1,579 | | Impairment loss / (reversal of impairment loss) — Trade receivables | 653 | (255) | | Listing expenses | — | 28,959 | | Warranty (decrease) / increase | (628) | 61 | Income Tax The Group's income tax provision was zero in H1 2025, compared to RMB11 thousand in 2024. Mainland China subsidiaries enjoy a 15% preferential tax rate and R&D cost deductions, while other regions pay local tax rates Income Tax Provision | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Current tax — Provision for the period | — | 11 | - Mainland China subsidiaries qualified as high-tech enterprises enjoy a 15% preferential tax rate and an additional tax deduction allowance calculated at 100% of eligible R&D costs[76] - The Company is incorporated in the Cayman Islands and is exempt from taxation under Cayman Islands tax law. Hong Kong profits tax is calculated at 16.5%, with a two-tiered tax rate applicable to some companies. US and Taiwan subsidiaries are subject to corporate income tax at maximum rates of 24.53% and 20%, respectively[79] Loss Per Share This section calculates basic and diluted loss per share, and adjusted basic and diluted loss per share. H1 2025 basic and diluted loss per share was RMB(0.00), a significant improvement from RMB(0.55) in 2024 Basic and Diluted Loss Per Share Basic and diluted loss per share is calculated based on loss attributable to ordinary equity holders and weighted average ordinary shares outstanding. H1 2025 loss per share was RMB(0.00), significantly lower than the prior year Loss Per Share (Basic and Diluted) | Metric | 2025 (RMB Yuan) | 2024 (RMB Yuan) | | :--- | :--- | :--- | | Loss Per Share (Basic and Diluted) | (0.00) | (0.55) | Weighted Average Number of Ordinary Shares | Item | 2025 (thousand shares) | 2024 (thousand shares) | | :--- | :--- | :--- | | Ordinary shares outstanding at January 1 | 1,521,381 | 626,458 | | Effect of conversion of contingently redeemable preference shares to ordinary shares | — | 397,555 | | Effect of ordinary shares issued under initial public offering and over-allotment option | — | 33,538 | | Effect of options exercised | 14,946 | — | | Weighted average number of ordinary shares at June 30 | 1,536,327 | 1,057,551 | - Contingently redeemable preference shares, options, and award shares were not included in the calculation of diluted loss per share because their inclusion would have an anti-dilutive effect[81] Adjusted Basic and Diluted Loss Per Share 2024 adjusted basic and diluted loss per share was RMB(0.30), adjusted for fair value changes in contingently redeemable ordinary shares to more clearly reflect core operating performance Adjusted Loss Attributable to Ordinary Equity Holders of the Company | Item | 2024 (RMB '000) | | :--- | :--- | | Loss attributable to ordinary equity holders of the Company | (578,756) | | Fair value changes in contingently redeemable ordinary shares | 260,074 | | Adjusted Loss attributable to ordinary equity holders of the Company | (318,682) | - The 2024 adjusted basic and diluted loss per share (excluding fair value changes in contingently redeemable ordinary shares) was RMB(0.30)[82] Details of Assets and Liabilities This section provides detailed information and aging analysis for inventories, trade receivables, prepayments, cash, trade payables, other payables, bank borrowings, and contingently redeemable preference and ordinary shares Inventories As of June 30, 2025, net inventories were RMB68,090 thousand, a slight increase from December 31, 2024, with inventory write-downs decreasing Inventory Composition | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Finished goods | 85,187 | 91,115 | | Raw materials | 3,867 | 4,121 | | Less: Inventory write-downs | (20,964) | (28,362) | | Net | 68,090 | 66,874 | Trade Receivables Net trade receivables were RMB44,791 thousand, a decrease from the end of 2024, primarily comprising amounts due within 90 days, as trade receivables are generally due within 90 days of invoice date Net Trade Receivables | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Amounts due from third parties | 57,312 | 60,184 | | Less: Loss allowance | (12,521) | (11,892) | | Net Trade Receivables | 44,791 | 48,292 | Aging Analysis of Trade Receivables | Aging | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 90 days | 42,377 | 47,796 | | 90 to 360 days | 2,414 | 496 | | Total | 44,791 | 48,292 | Prepayments, Deposits and Other Receivables Net prepayments, deposits, and other receivables were RMB35,110 thousand, a decrease from the end of 2024, primarily due to reduced deductible input VAT and refundable VAT on export sales Composition of Prepayments, Deposits and Other Receivables | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Prepayments | 11,752 | 11,139 | | Deductible input VAT | 10,084 | 14,312 | | Refundable VAT on export sales | 6,604 | 14,258 | | Deposits | 3,090 | 3,333 | | Amounts due from related parties | 3,471 | 4,971 | | Others | 163 | 862 | | Less: Loss allowance | (54) | (54) | | Total | 35,110 | 48,821 | Cash and Cash Equivalents As of June 30, 2025, cash and cash equivalents were RMB253,956 thousand, a significant increase from the end of 2024, primarily comprising bank balances and highly liquid investments with original maturities of three months or less Composition of Cash and Cash Equivalents | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Bank balances | 64,253 | 19,936 | | Time deposits and highly liquid investments with original maturities of three months or less | 189,703 | 136,599 | | Total | 253,956 | 156,535 | Trade Payables Total trade payables were RMB20,232 thousand, a decrease from the end of 2024, primarily comprising trade payables to third parties, with all amounts expected to be settled within one year or on demand Composition of Trade Payables | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade payables to related parties | 2,830 | — | | Trade payables to third parties | 17,402 | 33,659 | | Total | 20,232 | 33,659 | - All trade payables are expected to be settled within one year or on demand[87] Other Payables and Accrued Expenses Total other payables and accrued expenses were RMB38,730 thousand, a significant decrease from the end of 2024, primarily due to reduced payables for R&D expenses, financial liabilities at amortized cost, and salaries and benefits payable Composition of Other Payables and Accrued Expenses | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Service fees payable | 2,920 | 2,010 | | Advertising fees payable | 2,213 | 2,262 | | Payables for R&D expenses | 1,959 | 19,192 | | Others | 282 | 1,176 | | Financial liabilities measured at amortized cost | 7,374 | 24,640 | | Salaries and benefits payable | 3,732 | 12,635 | | Other taxes payable | 27,624 | 30,444 | | Total | 38,730 | 67,719 | Bank Borrowings As of June 30, 2025, total bank borrowings were RMB40,971 thousand, all unsecured, fixed-rate, and repayable within one year - As of June 30, 2025, bank borrowings were unsecured and repayable within one year[89] - The Group's bank borrowings totaled RMB40,971,000, comprising RMB20,971,000 at an annual interest rate of 1.95% and RMB20,000,000 at an annual interest rate of 1.80%[89] Contingently Redeemable Preference Shares and Ordinary Shares As of June 30, 2025, the carrying value of contingently redeemable preference and ordinary shares was zero, as they automatically converted to equity, share premium, and capital reserves upon listing - On the date of the Company's listing on the Stock Exchange, the Company's contractual obligation to repurchase ordinary and preference shares terminated[90] - The carrying amount of the financial liabilities arising from the Company's contingent redemption obligation was reclassified to equity, share premium, and capital reserves within equity[90] Dividends The company's directors do not recommend paying an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Company's directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: RMB nil)[91] Definitions This section provides definitions for key terms and abbreviations used throughout the report