北青传媒(01000) - 2025 - 中期业绩

Report Overview Financial Highlights The Group reported a 32.63% year-over-year decrease in total operating revenue and a 102.20% increase in net loss attributable to equity holders, with loss per share reaching RMB0.10 Financial Highlights for H1 2025 | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 65,985 | 97,937 | -32.63 | | Net Loss Attributable to Equity Holders of the Company | 19,047 | 9,420 | +102.20 | | Loss Per Share (RMB) | 0.10 | 0.05 | +100.00 | Consolidated Financial Statements Consolidated Income Statement The Group's H1 2025 total operating revenue decreased by 32.63% to RMB65,985 thousand, with operating and net losses significantly expanding year-over-year Key Consolidated Income Statement Data (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Operating Revenue | 65,985 | 97,937 | | Total Operating Costs | 96,287 | 117,668 | | Operating Profit | (20,736) | (11,260) | | Net Profit | (20,275) | (11,300) | | Net Profit Attributable to Equity Holders of the Company | (19,047) | (9,420) | | Net Other Comprehensive Income After Tax | 34,248 | 138 | | Total Comprehensive Income | 13,973 | (11,162) | | Basic Earnings Per Share (RMB) | (0.10) | (0.05) | Consolidated Balance Sheet As of June 30, 2025, total assets reached RMB721,635 thousand, with non-current assets increasing due to investment properties, and both total liabilities and equity rising Key Consolidated Balance Sheet Data (As of June 30) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total Current Assets | 269,225 | 294,314 | | Total Non-current Assets | 452,410 | 418,439 | | Total Assets | 721,635 | 712,753 | | Total Current Liabilities | 65,712 | 63,118 | | Total Non-current Liabilities | 706 | 706 | | Total Liabilities | 66,418 | 63,824 | | Total Equity Attributable to Equity Holders of the Company | 653,049 | 637,736 | | Total Equity | 655,217 | 648,929 | | Total Liabilities and Equity | 721,635 | 712,753 | Notes to the Financial Statements Basis of Preparation and Going Concern Financial statements are prepared under PRC Accounting Standards, CSRC, and HKEX regulations on a going concern basis, with no significant doubts identified - Financial statements are prepared in accordance with PRC Accounting Standards for Business Enterprises, CSRC's No. 15 Rules on Information Disclosure by Companies Issuing Securities to the Public, and the HKEX Listing Rules and Hong Kong Companies Ordinance[13] - The Group assessed its ability to continue as a going concern for 12 months from June 30, 2025, and found no material uncertainties that cast significant doubt on its going concern ability[14] Total Operating Revenue, Operating Costs, and Gross Profit H1 2025 total operating revenue decreased by 32.63% to RMB65,985 thousand, driven by main business decline, while gross profit turned to a loss of RMB(6,403) thousand Total Operating Revenue, Operating Costs, and Gross Profit (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Main Business Revenue | 62,607 | 93,443 | | Other Business Revenue | 3,378 | 4,494 | | Total Operating Revenue | 65,985 | 97,937 | | Main Business Costs | 72,383 | 92,925 | | Other Business Costs | 5 | 141 | | Total Operating Costs | 72,388 | 93,066 | | Gross Profit | (6,403) | 4,871 | Main Business Revenue and Costs by Segment (For the six months ended June 30) | Item | 2025 Operating Revenue (RMB thousands) | 2025 Operating Costs (RMB thousands) | 2024 Operating Revenue (RMB thousands) | 2024 Operating Costs (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Advertising | 46,038 | 54,105 | 51,808 | 52,021 | | Printing | — | — | 2 | 1 | | Printing-related Material Trading | 8,654 | 9,745 | 29,905 | 28,711 | | Other | 7,915 | 8,533 | 11,728 | 12,192 | | Total | 62,607 | 72,383 | 93,443 | 92,925 | - In H1 2025, operating revenue from the top five customers totaled RMB18,536 thousand, accounting for 28.09% of business revenue[18] Taxes and Surcharges H1 2025 taxes and surcharges decreased by 17.78% to RMB846 thousand, mainly due to lower property tax, cultural development fees, and urban construction tax Taxes and Surcharges (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Property Tax | 512 | 633 | | Cultural Development Fees | 211 | 245 | | Urban Construction Tax | 52 | 58 | | Education Surcharge | 30 | 24 | | Local Education Surcharge | 20 | 17 | | Other | 21 | 52 | | Total | 846 | 1,029 | Finance Costs H1 2025 finance costs were negative RMB493 thousand, an absolute decrease of 25.08% year-over-year, primarily driven by reduced interest income Finance Costs (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest Expense | 64 | 90 | | Less: Interest Income | 573 | 785 | | Exchange Gains/Losses | (2) | — | | Add: Handling Fees and Other Expenses | 18 | 37 | | Total | (493) | (658) | Investment Income H1 2025 investment income decreased by 19.04% to RMB8,989 thousand, primarily from other equity instrument investments, contrasting with higher disposal gains in the prior year Investment Income (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Share of Profit from Associates | — | (1,377) | | Investment Income from Disposal of Financial Assets Measured at Fair Value Through Profit or Loss | (131) | 12,441 | | Investment Income from Other Equity Instrument Investments Held | 8,842 | 39 | | Other Investment Income | 278 | — | | Total | 8,989 | 11,103 | Gains from Changes in Fair Value and Credit Impairment Losses H1 2025 saw fair value gains of RMB2,320 thousand, a significant improvement, while credit impairment losses were RMB(1,783) thousand, primarily from bad debts Gains from Changes in Fair Value (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Fair Value Changes of Financial Assets Held for Trading | 2,320 | (5,563) | | Total | 2,320 | (5,563) | Credit Impairment Losses (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Bad Debt Losses | (1,783) | 2,893 | | Total | (1,783) | 2,893 | Non-operating Income and Expenses H1 2025 non-operating income significantly increased to RMB380 thousand, primarily from other income, while non-operating expenses substantially decreased to RMB4 thousand Non-operating Income (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Gains on Disposal of Fixed Assets | — | 5 | | Other | 380 | 8 | | Total | 380 | 13 | Non-operating Expenses (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Other | 4 | 38 | | Total | 4 | 38 | Income Tax Expense H1 2025 income tax expense was negative RMB85 thousand, a 666.67% decrease, primarily due to a reversal by subsidiary Jingjian Media from tax reconciliation Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current Income Tax Expense | (85) | 15 | | Total | (85) | 15 | - The Group was not required to provide for Hong Kong profits tax during the period as no profits arose in Hong Kong[24] Other Comprehensive Income H1 2025 net other comprehensive income after tax significantly increased to RMB34,248 thousand, primarily driven by a RMB34,183 thousand gain from investment property fair value changes Other Comprehensive Income (As of June 30) | Item | Balance as of January 1, 2025 (RMB thousands) | Amount Incurred Before Tax for the Year (RMB thousands) | Attributable to Parent Company After Tax (RMB thousands) | Attributable to Non-controlling Interests After Tax (RMB thousands) | Balance as of June 30, 2025 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | Other Comprehensive Income Not to be Reclassified to Profit or Loss | 230,487 | — | — | — | 230,487 | | Of which: Fair Value Changes of Other Equity Instrument Investments | 230,487 | — | — | — | 230,487 | | Other Comprehensive Income to be Reclassified to Profit or Loss | 751 | 34,248 | 34,222 | 26 | 34,973 | | Of which: Fair Value Changes of Investment Properties | — | 34,183 | 34,183 | — | 34,183 | | Exchange Differences on Translation of Foreign Currency Financial Statements | 201 | 65 | 39 | 26 | 240 | | Total Other Comprehensive Income | 231,238 | 34,248 | 34,222 | 26 | 265,460 | Earnings Per Share and Dividends H1 2025 basic and diluted loss per share expanded to RMB0.10, and the Board does not recommend an interim dividend Earnings Per Share (For the six months ended June 30) | Item | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Net Profit Attributable to Equity Holders of the Company for the Half Year | (19,047) | (9,420) | | Weighted Average Number of Ordinary Shares Issued (thousands) | 197,310 | 197,310 | | Basic Earnings Per Share | (0.10) | (0.05) | | Diluted Earnings Per Share | (0.10) | (0.05) | - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (2024: nil)[27] Details of Current Assets As of June 30, 2025, total current assets were RMB269,225 thousand, with cash decreasing, financial assets held for trading increasing, and mixed movements in receivables and prepayments Key Current Asset Items (As of June 30) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Cash and Bank Balances | 41,463 | 81,523 | | Financial Assets Held for Trading | 127,388 | 114,270 | | Net Accounts Receivable | 39,897 | 28,235 | | Net Prepayments | 9,390 | 6,061 | | Net Other Receivables | 22,366 | 28,712 | | Inventories | 52 | 5,282 | | Other Current Assets | 28,669 | 29,595 | - Financial assets held for trading primarily consist of broker asset management products, totaling RMB127,388 thousand, an 11.48% increase from the end of 2024[28] - Net accounts receivable amounted to RMB39,897 thousand, with the 0-90 day aging period accounting for the largest proportion, and the top five entities representing 49.84% of total accounts receivable[28] - Net other receivables were RMB22,366 thousand, including RMB8,842 thousand in dividends receivable; other receivables by nature include related party balances, external entity balances, deposits, and guarantees[30][31][33] Details of Non-current Assets As of June 30, 2025, total non-current assets increased to RMB452,410 thousand, driven by investment properties' fair value gains, while long-term equity investments were written down to zero Key Non-current Asset Items (As of June 30) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Other Equity Instrument Investments | 341,253 | 341,253 | | Investment Properties | 95,743 | 53,633 | | Fixed Assets | 1,219 | 1,432 | | Right-of-use Assets | 695 | 1,390 | | Intangible Assets | 8,298 | 16,450 | | Long-term Prepayments | 5,202 | 4,281 | | Other Non-current Assets | — | — | - Long-term equity investments, including those in associates like Beijing Leisure Fashion Advertising Co., Ltd., have been written down to zero under the equity method[37] - Investment properties' fair value was RMB95,743 thousand, a 78.51% increase from the end of 2024, mainly due to the conversion of some self-owned properties to investment properties measured at fair value, resulting in an appraisal gain of RMB34,183 thousand[41] - Among other non-current assets, a prepayment of RMB24,000 thousand for the film project "Oriental Football King" has been fully impaired, as the project has not yet been released[44] Details of Current Liabilities As of June 30, 2025, total current liabilities slightly increased to RMB65,712 thousand, with notes payable and contract liabilities rising, while other payables decreased Key Current Liability Items (As of June 30) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Notes Payable | 7,552 | 1,365 | | Accounts Payable | 17,125 | 21,184 | | Contract Liabilities | 14,653 | 9,674 | | Payroll Payable | 6,250 | 6,981 | | Taxes Payable | 971 | 1,528 | | Other Payables | 17,469 | 18,006 | | Non-current Liabilities Due Within One Year | 750 | 1,106 | | Other Current Liabilities | 942 | 3,274 | - Accounts payable amounted to RMB17,125 thousand, with the 0-90 day aging period accounting for the largest proportion at RMB8,293 thousand[45] - Other payables were RMB17,469 thousand, mainly comprising intercompany balances, deposits and guarantees, and collections/payments on behalf of others[45] Details of Non-current Liabilities As of June 30, 2025, total non-current liabilities remained at RMB706 thousand, entirely consisting of deferred income tax liabilities Key Non-current Liability Items (As of June 30) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Deferred Income Tax Liabilities | 706 | 706 | | Total Non-current Liabilities | 706 | 706 | Details of Equity As of June 30, 2025, total equity increased to RMB655,217 thousand, driven by higher other comprehensive income, despite a decrease in retained earnings due to expanded losses Key Equity Items (As of June 30) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Share Capital | 197,310 | 197,310 | | Capital Reserve | 919,114 | 918,976 | | Other Comprehensive Income | 265,460 | 231,238 | | Surplus Reserve | 130,931 | 130,931 | | Retained Earnings | (859,766) | (840,719) | | Total Equity Attributable to Equity Holders of the Company | 653,049 | 637,736 | | Non-controlling Interests | 2,168 | 11,193 | | Total Equity | 655,217 | 648,929 | Interests in Other Entities The Group holds interests in other entities through other equity instrument investments in Beiyang Publishing and Beijing Keyin Media, and financial assets held for trading in Capital Securities Interests in Other Equity Instrument Investments The Group holds significant equity stakes in Beiyang Publishing (2.43%, RMB264,379 thousand) and Beijing Keyin Media (16.00%, RMB36,444 thousand) for investment returns Basic Information of Companies Related to Other Equity Instrument Investments (As of June 30) | Company Name | Shareholding (%) | Fair Value (RMB thousands) | % of Total Assets | | :--- | :--- | :--- | :--- | | Beiyang Publishing & Media Co., Ltd. | 2.43 | 264,379 | 36.64 | | Beijing Keyin Media Culture Co., Ltd. | 16.00 | 36,444 | 5.05 | | Beijing Youth Daily New Media Co., Ltd. | 5.00 | 3,577 | 0.50 | | Beijing International Advertising Media Group Co., Ltd. | 11.44 | 36,853 | 5.11 | - Investments in Beiyang Media and Keyin Media are primarily based on their sound operating conditions and capital operation plans, aiming for better investment returns[47] Interests in Financial Assets Held for Trading The Group's idle funds managed by Capital Securities in fixed-income products had a fair value of RMB127,388 thousand, recognizing RMB2,739 thousand in unrealized gains Basic Information of Financial Assets Held for Trading (As of June 30) | Counterparty Name | Product Type | Investment Cost (RMB thousands) | Unrealized Gains and Losses for the six months ended June 30 (RMB thousands) | Fair Value (RMB thousands) | % of Total Assets | | :--- | :--- | :--- | :--- | :--- | :--- | | Capital Securities | Fixed-income Wealth Management Products | 118,390 | 2,739 | 127,388 | 17.65 | - The Company will continue to entrust Capital Securities with managing idle funds, provided it does not affect daily operating liquidity and is authorized by the shareholders' meeting[49] Group Business Review Overall Operating Performance and Market Environment H1 2025 total operating revenue decreased by 32.63% to RMB65,985 thousand, with net loss attributable to equity holders increasing by 102.20% due to revenue decline, higher expenses, and credit losses amid a challenging market - H1 2025 total operating revenue was RMB65,985 thousand, a 32.63% decrease from H1 2024[51] - Net loss attributable to equity holders of the Company was RMB19,047 thousand, a 102.20% increase from H1 2024[51] - The increase in net loss was primarily due to: (1) decreased operating revenue; (2) increased administrative expenses from personnel restructuring for new business development and transformation; (3) increased credit impairment losses affected by accounts receivable collection[51] - Operating revenue from traditional business segments generally decreased, with the printing and related material trading business contraction leading to a RMB21,253 thousand decline in operating revenue[51] - Despite market challenges, the Company continued to expand its outdoor advertising and Beijing City Cultural Annual Pass businesses, contributing to operating revenue growth[51] - The global economy experienced uneven recovery due to geopolitical conflicts and inflationary pressures; the domestic economy faced dual pressures of demand contraction and structural adjustment, leading to slower advertising market growth and digital transformation challenges for traditional advertising[50] Strategic Initiatives and Operational Optimization H1 2025 focused on strategic transformation, optimizing governance, fostering growth drivers, and enhancing asset structure through top-level design, business layout, and brand building Optimizing Governance System and Enhancing Operational Efficiency The Group optimized its governance by re-electing the Board, enhancing the Supervisory Board, advancing strategic planning, building a risk management system, and improving OA and state-owned asset management - Completed the re-election of the Company's new Board of Directors, resulting in a more professional and diversified board composition[52] - Carried out reforms to the Supervisory Board, optimizing the corporate governance structure[52] - Advanced the '15th Five-Year' strategic plan, strengthening top-level design[52] - Established a comprehensive system-wide risk management framework, enhancing risk prevention and control[52] - Enhanced the intelligence of the OA office system, optimizing financial and business process management systems[52] - Formulated and revised company policies, improving the state-owned asset management system[52] Optimizing Business Layout and Fostering Growth Drivers The Group transformed advertising with metro media upgrades and interactive projects, expanded cultural tourism integration with events like KOD, developed youth education programs, and innovated new media operations and government activities - Accelerated advertising business transformation and innovation, completing media upgrades at Beijing Metro Line 4 Xidan Station and developing 'Metro Station' creative interactive scene advertising projects[53][54] - Meticulously built its own media matrix, deeply cultivating vertical account operations in elderly care, automotive, and real estate, integrating short video and live streaming content marketing formats[53][54] - Actively integrated capital cultural tourism resources, deeply expanding cultural, sports, and tourism integration businesses, including organizing the 2025 KOD World Street Dance Competition and forming a strategic partnership with 'The Color Run'[53][54] - Strengthened Beijing City Cultural Annual Pass product development and channel expansion, collaborating with over 40 central and state-owned enterprises in H1 2025[53][54] - Focused on youth quality education, providing diversified science popularization study tours and camp education practical services, completing 16 group camp reception projects and cumulatively hosting 10,421 person-days[53][54] - Focused on new media operations and government event businesses, innovatively incubating the 'Beijing Community Culture Festival' brand, promoting commercial operation of community spaces, and implementing 15 'Beiqing Community HUI' projects[53][54] Optimizing Asset Structure and Strengthening Internal Control Empowerment The Group revitalized idle assets, generating RMB2,320 thousand from fund management and RMB2,246 thousand from property rentals, while accelerating the divestment of 6 inefficient enterprises and liquidating paper inventory - Entrusted Capital Securities Co., Ltd. with idle fund management, realizing fair value change gains of RMB2,320 thousand[55] - Generated rental income of RMB2,246 thousand by leasing idle office properties and bartered properties[55] - Accelerated the cleanup of inefficient assets, systematically advancing the divestment of 6 inefficient enterprises, with 1 already deregistered[55] - Expedited the liquidation sale of paper inventory, accelerating the mitigation of trade business risks[55] Details of Advertising Business Market Environment and Business Performance H1 2025 saw China's advertising market grow with digital dominance, while the Group's advertising revenue decreased by 11.14% to RMB46,038 thousand, offset by growth in outdoor advertising and annual pass services - China's advertising market size continued to grow, with digital advertising's share steadily increasing, and traditional media accelerating its digital and interactive transformation[56] - The outdoor advertising market showed structural adjustments, with overall spending trending downwards, but digital media advertising, such as subway electronic screens, experienced counter-trend growth[56] - In H1 2025, the Group's advertising revenue was RMB46,038 thousand, an 11.14% decrease from H1 2024[57] - Outdoor advertising business revenue was RMB13,482 thousand, a 12.56% increase from H1 2024[57] - Annual pass business generated new revenue of RMB3,256 thousand[57] Core Initiatives and Business Breakthroughs The Group achieved advertising breakthroughs through innovation, content, and channel empowerment, building a differentiated outdoor advertising system, a refined media matrix, and diversified annual pass brand Innovation Empowerment, Differentiated Outdoor Advertising Product System Construction The Group upgraded Beijing Metro Line 4 Xidan Station media with large lightboxes and LED screens, developing 'Metro Station' interactive advertising projects and partnering with major brands - Completed media upgrades at Beijing Metro Line 4 Xidan Station, introducing oversized lightboxes and high-definition LED electronic screens[57][58] - Developed the 'Metro Station' project, conducting creative interactive scene activities such as product displays and experiences in subway station halls[57][58] Content Empowerment, Meticulously Building Own Media Matrix The Group enhanced its new media matrix with short videos and live streaming, generating RMB2,955 thousand in H1 2025, and successfully grew vertical accounts like 'Qingche Tan' and 'Elderly Care New Frontline' - H1 2025 account operating revenue reached RMB2,955 thousand[59] - 'Qingche Tan' meticulously categorized content sections, including hot topic tracking, cloud car reviews, and engaging test drives[59] - 'Elderly Care New Frontline' deeply cultivated live streaming services, conducting themed activities for elderly care institutions, driving fan growth and sales conversion[59] - 'Sister Yu's Property Review' focused on the real estate vertical, interpreting market trends, reviewing properties, and analyzing policies, achieving widespread dissemination[59] Channel Empowerment, Diversified Deep Cultivation of Annual Pass Business Brand The Group expanded annual pass channels, collaborating with over 40 state-owned enterprises, and upgraded its mini-program to enhance user experience and operational efficiency - Expanded the core sales network to central and state-owned enterprise unions, collaborating with over 40 enterprises on annual pass projects[60] - Advanced annual pass mini-program upgrades, completing backend management system reconstruction and user interface optimization, and launching new features like a scenic spot verification system[60] Performance of Major Subsidiaries Beiqing Innovation Culture Beiqing Innovation Culture, a wholly-owned subsidiary, completed 16 youth camp projects, hosting 10,421 person-days, expanded projects, and developed curricula, with one project selected for a Hong Kong youth study tour collection - In H1 2025, completed 16 group camp reception projects for study tours, social practices, and enterprise/public institution training, cumulatively hosting 10,421 person-days[61] - Successfully expanded 8 Beijing school projects and 5 provincial client projects[61] - The 'National Science and Technology Innovation Development System Study Tour – Beijing' project was successfully selected for the '2025 Hong Kong Youth Study Tour to Mainland China Collection of Excellent Projects'[61] Beiqing Community Media Beiqing Community Media transformed into a government integrated media service, covering nine Beijing districts with nearly 50 new media accounts, acquired 16 new clients, implemented 15 'Beiqing Community HUI' projects, and incubated the 'Beijing Community Culture Festival' brand - Beiqing Community Media has transformed from a traditional newspaper business model to one primarily focused on government integrated media services[62] - Government affairs business covers nine districts in Beijing, including Changping, Shunyi, Miyun, Fangshan, Dongcheng, Xicheng, Shijingshan, Haidian, Chaoyang, and the Sub-center, and publishes 'Beiqing Community News'[62] - Operates nearly 50 new media accounts on platforms such as WeChat, Weibo, Douyin, Kuaishou, Xiaohongshu, Toutiao, and NetEase, and is present on news apps like People's Daily, Beijing Daily, and Beijing Time[62][63] - Successfully acquired 16 new clients in H1 2025[63] - Implemented 15 'Beiqing Community HUI' projects in communities, such as Tongniu Film Industrial Park and Beijing Agricultural Guarantee Township Service Station, established a brand marketing center, and innovatively incubated the 'Beijing Community Culture Festival' brand[63] Jingjian Media Jingjian Media, a wholly-owned subsidiary, optimized its business, acquired 8 new government and state-owned enterprise clients, and monetized its 'Qingcheng 0819' self-media video account - Successfully acquired 8 new clients, including government agencies and state-owned enterprise groups[64] - Operated the self-media video account 'Qingcheng 0819', publishing 35 episodes of content and achieving commercial monetization[64] Outlook and Future Plans H2 2025 strategy focuses on transformational development, optimizing business layout, and growing core businesses, including advertising, cultural tourism integration, leveraging Capital Group's platform, and enhancing asset management and risk control - In H2 2025, the Group will strategically focus on transformational development, accelerating business layout adjustments, and concentrating on developing cornerstone and cultivation-type core businesses to improve quality and efficiency, building core competitive advantages[65] - Comprehensively build an advertising operating system: strengthen innovation in subway outdoor advertising models, promote integration of subway media resources and product development; solidify full-service advertising capabilities; deeply cultivate advertising content operations, accelerating the development and commercialization of proprietary new media products[65][66] - Deeply expand cultural, sports, and tourism integration: focus on implementing high-quality cultural and sports event IPs, such as successfully hosting the internationally renowned KOD World Street Dance Competition; continuously explore Beijing City Cultural Annual Pass channel resources and product models[65][66] - Continuously leverage Capital Group's cultural and sports industry market expansion platform function: explore new business models like 'video + government affairs' and 'cultural tourism + consumption,' strengthen commercial operation of community cultural spaces, implement 'Beijing Community Culture Festival' activities; build a distinctive brand for youth study tours[65][66] - Persistently deepen management: focus on optimizing asset structure and internal risk control, optimize organizational and talent structures, comprehensively strengthen institutional and informatization construction, driving improved management efficiency[65][66] Analysis of Financial Position and Operating Results Total Operating Revenue H1 2025 total operating revenue decreased by 32.63% to RMB65,985 thousand, primarily due to declines in printing, Beiqing Community Media advertising, and Beiqing Innovation Culture study tour revenue Total Operating Revenue by Segment (For the six months ended June 30) | Segment | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Advertising Revenue (including New Media Operations Revenue) | 46,038 | 51,808 | -11.14 | | Printing Revenue | 0 | 2 | -100.00 | | Printing-related Material Trading Revenue | 8,654 | 29,905 | -71.06 | | Other Revenue (including Study Tour Revenue) | 11,293 | 16,222 | -30.38 | | Total | 65,985 | 97,937 | -32.63 | - Key factors for the overall year-over-year decrease in operating revenue include: contraction of printing and printing-related material trading businesses, lower advertising revenue from subsidiary Beiqing Community Media, and reduced study tour revenue from Beiqing Innovation Culture, partially offset by growth in outdoor advertising and Beijing City Cultural Annual Pass businesses[68] Operating Costs and Taxes and Surcharges H1 2025 operating costs decreased by 22.22% to RMB72,388 thousand, driven by lower printing and study tour costs, while taxes and surcharges decreased by 17.78% to RMB846 thousand Operating Costs by Segment (For the six months ended June 30) | Segment | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Advertising Costs (including New Media Operations Costs) | 54,105 | 52,021 | +4.01 | | Printing Costs | 0 | 1 | -100.00 | | Printing-related Material Trading Costs | 9,745 | 28,711 | -66.06 | | Other Costs (including Study Tour Costs) | 8,538 | 12,333 | -30.77 | | Total | 72,388 | 93,066 | -22.22 | - Taxes and surcharges were RMB846 thousand, a 17.78% decrease from H1 2024[69] - The overall decrease in operating costs was mainly due to the reduction in printing and related material trading businesses and lower study tour revenue from Beiqing Innovation Culture, partially offset by increased costs in outdoor advertising and Beijing City Cultural Annual Pass businesses[69] Selling Expenses H1 2025 selling expenses decreased by 46.09% to RMB3,724 thousand, primarily due to sales personnel restructuring at Beiqing Community Media Selling Expenses (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Selling Expenses | 3,724 | 6,908 | -46.09 | - The year-over-year decrease in selling expenses was mainly due to personnel restructuring in Beiqing Community Media's sales team[70] Administrative Expenses H1 2025 administrative expenses increased by 14.43% to RMB19,822 thousand, driven by personnel restructuring for new businesses, higher labor and office costs, and increased intermediary fees Administrative Expenses (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 19,822 | 17,323 | +14.43 | - The year-over-year increase in administrative expenses was mainly due to personnel restructuring for new business development and transformation, increased labor and office expenses from providing employee meal benefits, and higher intermediary fees[71] Finance Costs H1 2025 finance costs were negative RMB493 thousand, an absolute decrease of 25.08% year-over-year, primarily due to reduced interest income from time deposits Finance Costs (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | (493) | (658) | -25.08 | - Interest income was RMB573 thousand, a 27.01% decrease from H1 2024[72] - The year-over-year increase in finance costs was mainly due to reduced interest income from time deposits[72] Share of Profit from Associates H1 2025 share of profit from associates was RMB0 thousand, an improvement from a prior year loss, as investments in associates were written down to zero Share of Profit from Associates (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Share of Profit from Associates | — | (1,377) | +1,377 | - Share of profit from associates for the current period was zero as investments in associates have been written down to zero under the equity method[73] Operating Profit H1 2025 operating profit was a loss of RMB20,736 thousand, an 84.16% increase in loss year-over-year, driven by lower revenue, higher administrative expenses, and increased credit impairment losses Operating Profit (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Profit | (20,736) | (11,260) | +84.16 | - The increase in loss was mainly due to decreased operating revenue, increased administrative expenses, and higher credit impairment losses affected by accounts receivable collection[74] Income Tax Expense H1 2025 income tax expense was negative RMB85 thousand, a 666.67% decrease, primarily due to a reversal by subsidiary Jingjian Media from tax reconciliation Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Income Tax Expense | (85) | 15 | -100 | - The Company's subsidiary, Jingjian Media, recorded a negative income tax expense for the current period due to a reversal based on income tax reconciliation results[75] Net Profit/Loss Attributable to Equity Holders of the Company H1 2025 net loss attributable to equity holders increased by 102.20% to RMB19,047 thousand, driven by lower revenue, higher administrative expenses, and increased credit impairment losses Net Profit/Loss Attributable to Equity Holders of the Company (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Loss Attributable to Equity Holders of the Company | 19,047 | 9,420 | +102.20 | - The increase in net loss was mainly due to decreased operating revenue, increased administrative expenses, and higher credit impairment losses affected by accounts receivable collection[76] Financial Resources and Liquidity As of June 30, 2025, current assets were RMB269,225 thousand and current liabilities RMB65,712 thousand, with cash decreasing, financial assets held for trading increasing, and total equity at RMB655,217 thousand Financial Resources and Liquidity (As of June 30) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Current Assets | 269,225 | 294,314 | | Cash and Bank Balances | 41,463 | 81,523 | | Financial Assets Held for Trading | 127,388 | 114,270 | | Non-current Assets | 452,410 | 418,439 | | Current Liabilities | 65,712 | 63,118 | | Non-current Liabilities | 706 | 706 | | Equity | 655,217 | 648,929 | - The Group's funds primarily originate from operating activities and deposit balances, mainly used for working capital and general recurring expenses[77] Bank Borrowings, Overdrafts and Other Borrowings As of June 30, 2025, the Group had no bank loans, overdrafts, or other borrowings - As of June 30, 2025, the Group had no bank loans, overdrafts, or other borrowings (December 31, 2024: nil)[78] Capital and Debt Ratio As of June 30, 2025, the Group's capital and debt ratio slightly increased to 10.14% from 9.84% at 2024 year-end Capital and Debt Ratio (As of June 30) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Capital and Debt Ratio | 10.14% | 9.84% | Share Capital Structure and Major Shareholders Share Capital Structure As of June 30, 2025, total share capital was 197,310,000 shares, with domestic shares at 72.18% and H shares at 27.82%, Beijing Youth Daily being the largest domestic shareholder at 63.27% Share Capital Structure (As of June 30) | Shareholder Category | Number of Shares | % of Total Share Capital | | :--- | :--- | :--- | | Domestic Shares (Subtotal) | 142,409,000 | 72.18 | | H Shares | 54,901,000 | 27.82 | | Total Share Capital | 197,310,000 | 100.00 | - Beijing Youth Daily holds 124,839,974 domestic shares, accounting for 63.27% of the total share capital[80] - LeEco Information Technology (Beijing) Co., Ltd. holds 19,533,000 H shares of the Company, accounting for 9.90% of the Company's total share capital[80] Interests of Major Shareholders in Shares and Related Shares As of June 30, 2025, Beijing Youth Daily is the largest shareholder with 63.27% domestic share interest, with Beijing Capital Group holding an interest via trusteeship, and LeEco holding 9.90% H share interest Interests of Major Shareholders in Shares and Related Shares (As of June 30) | Shareholder Name | Class of Shares | Nature of Interest | Number of Shares Interested | % of Total Issued Share Capital | | :--- | :--- | :--- | :--- | :--- | | Beijing Youth Daily | Domestic Shares | Beneficial Owner | 124,839,974 | 63.27 | | Beijing Capital Group Co., Ltd. | Domestic Shares | Other | 124,839,974 | 63.27 | | Beijing Chengshang Culture Communication Co., Ltd. | Domestic Shares | Beneficial Owner | 7,367,000 | 3.73 | | Guofu Shangtong Information Technology Development Co., Ltd. | Domestic Shares | Interest of a Controlled Corporation | 7,367,000 | 3.73 | | LeEco Information Technology (Beijing) Co., Ltd. | H Shares | Beneficial Owner | 19,533,000 | 9.90 | | Founder Investment (HK) Ltd. | H Shares | Beneficial Owner | 4,939,000 | 2.50 | - Capital Group has been included in the scope of trusteeship for enterprises under Beijing Youth Daily since May 20, 2021, exercising the Company's investor/shareholder functions, thus holding an interest in shares held by Beijing Youth Daily[83] - The nature of the interest in 7,367,000 domestic shares held by Beijing Chengshang Culture Communication Co., Ltd. has changed, being provided as security to parties other than qualified lenders[83] Other Information Capital Expenditure H1 2025 capital expenditure significantly increased to RMB2,124 thousand, with H2 spending anticipated for office equipment and intangible assets Capital Expenditure (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Capital Expenditure | 2,124 | 650 | - The Group anticipates H2 2025 capital expenditure will primarily include office equipment and intangible asset expenses consistent with its business strategy[85] Contingent Liabilities and Pledged Assets As of June 30, 2025, the Group had no contingent liabilities or pledged assets - As of June 30, 2025, the Group had no contingent liabilities or pledged assets[86] Foreign Exchange Risk The Group's functional currency is RMB, with limited foreign exchange risk from foreign currency payables, having minimal impact on cash flow or liquidity - The Group uses RMB as its functional currency, with domestic operations primarily settled in RMB[87] - Certain payables are settled in foreign currencies (mainly USD and HKD), but foreign exchange fluctuations have a very limited impact on the Group's operating cash flows or liquidity[87] Employees As of June 30, 2025, the Group had 346 employees, an increase due to a new subsidiary and restructuring, with total payroll of RMB41,055 thousand and active employee training - As of June 30, 2025, the Group had 346 employees (June 30, 2024: 310 employees), an increase from the prior year, mainly due to the addition of a new subsidiary and personnel restructuring for normal business needs[88] - During the reporting period, the Group paid total payroll expenses of approximately RMB41,055 thousand[88] - The Group conducted various employee training programs, including financial management, related party transactions and inside information management, legal and compliance management, archives management, outdoor advertising operations, and information technology and office applications[88] Directors' and Chief Executive's Interests As of June 30, 2025, no directors or chief executive held disclosable interests or short positions in the Company's or its associated corporations' shares or debentures - As of June 30, 2025, none of the Company's directors or chief executive had any interests or short positions in the shares, underlying shares, or debentures of the Company or any of its associated corporations that were required to be notified to the Company and the HKEX under Part XV of the Securities and Futures Ordinance[89] Purchase, Sale or Redemption of the Company's Listed Securities During the reporting period, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities, and no treasury shares were held as of June 30, 2025 - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[90] - As of June 30, 2025, the Company held no treasury shares[90] Significant Investments The Company's asset management plan with Capital Securities and investments in Beiyang Media and Keyin Media each exceed 5% of total assets; no other significant investments or acquisition plans exist - The Company's single asset management contract entrusted to Capital Securities was approved by shareholders for a three-year extension until June 16, 2026, with this investment accounting for over 5% of the Group's total assets[91] - The Company's investments in Beiyang Media and Keyin Media each account for over 5% of the Group's total assets[92] - Except as disclosed in this announcement, as of June 30, 2025, the Group had no significant investments or plans for significant investments or asset acquisitions[92] Significant Acquisitions and Disposals of Assets During the reporting period, the Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures[93] Changes in the Group's Performance After December 31, 2024 Except as disclosed, no material changes in the Company's current information compared to its most recently published annual report - Except as disclosed in this announcement, there have been no material changes in the Company's current information regarding matters listed in paragraph 32 of Appendix D2 to the Listing Rules compared to that disclosed in its most recently published annual report[94] Compliance with Laws and Regulations and Corporate Governance Code During the reporting period, the Company complied with all material laws, regulations, and the Corporate Governance Code provisions of the Listing Rules - During the reporting period, the Company complied with laws and regulations materially affecting the Group and the code provisions set out in Appendix C1 'Corporate Governance Code' of the Listing Rules[95] Compliance with Model Code The Company adopted the Model Code for directors' and supervisors' securities transactions, with all confirming compliance during the reporting period - The Company adopted the Model Code set out in Appendix C3 of the Listing Rules for securities transactions by directors and supervisors[96] - All directors and supervisors confirmed compliance with the standards stipulated in the Model Code during the reporting period[96] Audit Committee The Audit Committee, established per Listing Rules, reviewed the Group's H1 2025 unaudited interim results and internal controls, raising no objections - The Company established an Audit Committee in accordance with the Listing Rules to review, supervise, and adjust the Group's financial reporting process and internal controls[97] - The Audit Committee comprises one non-executive director and two independent non-executive directors[97] - The Company's Audit Committee reviewed the Group's unaudited interim results for the six months ended June 30, 2025, and raised no objections[98] Distributable Reserves As of June 30, 2025, accumulated losses were RMB708,276 thousand, with a surplus reserve of RMB130,931 thousand available to offset losses upon shareholder approval Distributable Reserves (As of June 30) | Item | Amount (RMB thousands) | | :--- | :--- | | Accumulated Losses | 708,276 | | Surplus Reserve | 130,931 | - According to the Company's Articles of Association, the surplus reserve can be used to offset the Company's losses upon approval by the Company's general meeting of shareholders[100] Interim Dividend The Board does not recommend any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the distribution of any interim dividend for the six months ended June 30, 2025[101] Disclosure of Information on HKEX and Company Website The Company's H1 2025 interim report will be published on the HKEXnews website and the Company's website - The Company's interim report for the six months ended June 30, 2025, will be published on the HKEXnews website (http://www.hkexnews.hk) and the Company's website (http://www.bjmedia.com.cn)[102](index=102&type=chunk)