伊登软件(01147) - 2025 - 中期业绩

Financial Highlights For the six months ended June 30, 2025, Edensoft Holdings Limited saw a decrease in unaudited revenue and gross profit, but a significant increase in profit attributable to owners of the parent and basic and diluted earnings per share 2025 H1 Key Financial Data Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 455.7 | 503.6 | -9.5% | | Gross Profit | 53.9 | 61.8 | -12.8% | | Profit Attributable to Owners of the Parent for the Period | 10.9 | 7.8 | +40.8% | | Basic and Diluted Earnings Per Share Attributable to Owners of the Parent | 0.53 cents | 0.38 cents | +39.5% | - The Board does not recommend an interim dividend for the six months ended June 30, 2025[2] Unaudited Condensed Consolidated Interim Financial Results This section presents the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, including the statement of profit or loss and other comprehensive income, statement of financial position, statement of changes in equity, and statement of cash flows, reflecting the company's overall financial performance and changes in asset and liability structure Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income During the reporting period, the company's revenue and gross profit decreased year-on-year, but effective control over selling, administrative, and R&D expenses, along with reduced finance costs, led to a significant increase in profit attributable to owners of the parent Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Summary) | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 455,711 | 503,584 | -9.5% | | Cost of Sales | (401,765) | (441,749) | -9.0% | | Gross Profit | 53,946 | 61,835 | -12.8% | | Selling and Distribution Expenses | (15,179) | (16,206) | -6.3% | | Administrative Expenses | (10,221) | (12,797) | -20.1% | | Research and Development Expenses | (15,200) | (22,975) | -33.8% | | Profit Before Tax | 10,419 | 7,377 | +41.2% | | Profit for the Period | 10,919 | 7,757 | +40.8% | | Profit Attributable to Owners of the Parent for the Period | 10,919 | 7,757 | +40.8% | | Basic and Diluted Earnings Per Share Attributable to Owners of the Parent | RMB 0.53 cents | RMB 0.38 cents | +39.5% | - Other comprehensive loss during the period primarily resulted from exchange differences on currency translation, amounting to RMB (789) thousand in H1 2025, compared to RMB 30 thousand in H1 2024[4] Unaudited Condensed Consolidated Statement of Financial Position As of June 30, 2025, the company's total non-current assets slightly increased, while total current assets and total current liabilities significantly decreased, leading to growth in both net current assets and total equity Condensed Consolidated Statement of Financial Position (Summary) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 22,100 | 21,430 | +3.1% | | Total Current Assets | 318,965 | 416,216 | -23.4% | | Total Current Liabilities | 133,116 | 235,553 | -43.5% | | Net Current Assets | 185,849 | 180,663 | +2.9% | | Total Equity | 207,580 | 200,793 | +3.4% | | Total Equity | 207,580 | 200,793 | +3.4% | - Inventories significantly decreased from RMB 120,278 thousand as of December 31, 2024, to RMB 61,720 thousand as of June 30, 2025[5] - Interest-bearing bank borrowings decreased from RMB 38,034 thousand as of December 31, 2024, to RMB 0 thousand as of June 30, 2025[5] Unaudited Condensed Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, total equity attributable to owners of the parent increased, mainly due to profit for the period and employee share award scheme service value, partially offset by exchange fluctuations and declared dividends Changes in Equity Attributable to Owners of the Parent (Summary) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Total Equity | 207,580 | 200,793 | +6,787 | | Profit for the Year | 10,919 | - | +10,919 | | Exchange Differences | (789) | - | (789) | | Employee Share Award Scheme – Employee Service Value | 40 | - | +40 | | Final Dividend Declared for 2024 | (3,383) | - | (3,383) | - For the six months ended June 30, 2024, total equity was RMB 199,477 thousand, and profit for the period was RMB 7,757 thousand[8] Unaudited Condensed Consolidated Statement of Cash Flows During the reporting period, net cash flow from operating activities significantly decreased, net cash flow from investing activities remained positive, and net cash flow used in financing activities substantially increased, resulting in a decrease in cash and cash equivalents at period-end Condensed Consolidated Statement of Cash Flows (Summary) | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (RMB thousand) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 30,262 | 180,789 | -150,527 | | Net Cash Flow from Investing Activities | 164 | 142 | +22 | | Net Cash Flow Used in Financing Activities | (42,805) | (15,981) | -26,824 | | Net (Decrease)/Increase in Cash and Cash Equivalents | (12,379) | 164,950 | -177,329 | | Cash and Cash Equivalents at Period-End | 71,304 | 169,724 | -98,420 | - Net cash flow from operating activities significantly decreased, primarily due to the combined effects of reduced inventories, trade receivables, and prepayments[9] - Net cash flow used in financing activities increased, mainly due to increased repayment of bank and other borrowings and dividends paid[10] Notes to the Unaudited Condensed Consolidated Interim Financial Information This section details the basis of preparation, accounting policies, segment information, specific components and changes of financial items, related party transactions, fair value of financial instruments, and other important disclosures, providing context for understanding the financial data Company Information Edensoft Holdings Limited, incorporated in the Cayman Islands, primarily provides IT infrastructure services, IT implementation and business application services, and cloud and AI services through its subsidiaries in mainland China - The company was incorporated in the Cayman Islands on September 4, 2018, as an investment holding company[11] - Its principal business is providing IT infrastructure services, IT implementation and business application services, and cloud and AI services in mainland China[11] Basis of Presentation The interim condensed consolidated financial information is prepared in accordance with HKAS 34 and the HKEX Listing Rules, and should be read in conjunction with the Group's annual consolidated financial statements for the year ended December 31, 2024 - The interim financial information is prepared in accordance with HKAS 34 and the disclosure requirements of the Listing Rules[12] - It does not include all information and disclosures required in annual financial statements and should be read in conjunction with the 2024 annual consolidated financial statements[12] Changes in Accounting Policies and Disclosures This period's financial information first adopted the revised HKFRSs, with the amendments to HKAS 21 regarding lack of exchangeability having no impact on the Group's interim condensed consolidated financial information - The accounting policies adopted in preparing the interim financial information are consistent with those in the 2024 annual consolidated financial statements, but revised HKFRSs were adopted for the first time[13] - The amendments to HKAS 21 regarding lack of exchangeability had no impact on the Group's interim condensed consolidated financial information, as the Group's transaction and functional currencies are exchangeable[14] Segment Information The Group has three reportable operating segments: IT infrastructure services, IT implementation and business application services, and cloud and AI services; during the reporting period, revenue from cloud and AI services decreased, while revenue from IT infrastructure services and IT implementation and business application services increased Reportable Segment Revenue and Gross Profit Comparison | Segment | 2025 H1 Revenue (RMB thousand) | 2024 H1 Revenue (RMB thousand) | Revenue Change (%) | 2025 H1 Gross Profit (RMB thousand) | 2024 H1 Gross Profit (RMB thousand) | Gross Profit Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | IT Infrastructure Services | 168,895 | 147,126 | +14.8% | 13,943 | 15,216 | -8.3% | | IT Implementation and Business Application Services | 75,235 | 67,186 | +12.0% | 26,655 | 19,090 | +39.6% | | Cloud and AI Services | 211,581 | 289,272 | -26.9% | 13,348 | 27,529 | -51.5% | | Total | 455,711 | 503,584 | -9.5% | 53,946 | 61,835 | -12.8% | - Cloud and AI services include providing design, management, and technical support using cloud platforms (self-developed and third-party)[16] - IT infrastructure services involve assessing customer needs, recommending hardware/software products, procurement, and installation[16] Revenue, Other Income and Gains The Group's revenue primarily comes from IT infrastructure services, IT implementation and business application services, and cloud and AI services, with adjustments in cloud solution services and IT design and implementation services in H1 2025; Mainland China remains the main revenue source, with increased contribution from Hong Kong; other income mainly includes bank interest, government grants, and foreign exchange gains Revenue by Service Type and Geographical Market (Summary) | Service Type/Geographical Market | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Service Type | | | | Sales of Software and/or Hardware Products and Related Services | 168,895 | 147,126 | | Sales of Solution-based Software and/or Hardware Products and Related Services | 46,005 | 25,802 | | IT Support and Maintenance Services | 11,866 | 8,596 | | IT Design and Implementation Services | 17,364 | 32,788 | | Cloud Solution Services | - | 285,644 | | Cloud Platform Design Services | 131,829 | 3,628 | | Geographical Market | | | | Mainland China | 409,800 | 489,233 | | Hong Kong | 45,914 | 14,351 | | Timing of Revenue Recognition | | | | At a point in time | 294,652 | 172,928 | | Over time | 161,059 | 330,656 | Other Income Comparison | Other Income Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Bank Interest Income | 222 | 154 | | Government Grants – Income Related | 573 | 820 | | Foreign Exchange Gains | 58 | - | | Total | 853 | 974 | Profit Before Tax The Group's profit before tax increased during the reporting period, mainly due to reduced cost of sales, R&D expenses, employee benefit expenses, and net foreign exchange differences, partially offset by increased impairment of trade and bills receivables Profit Before Tax Deductions/(Additions) (Summary) | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Cost of Goods Sold and Services Rendered | 401,765 | 441,749 | | Depreciation of Property, Plant and Equipment | 180 | 113 | | Depreciation of Right-of-Use Assets | 1,057 | 1,618 | | Research and Development Expenses | 15,200 | 22,975 | | Total Employee Benefit Expenses | 34,161 | 36,087 | | Net Foreign Exchange Differences | (58) | 914 | | Impairment of Trade and Bills Receivables | 2,846 | 1,392 | Income Tax Expense The Group faces varying income tax policies across jurisdictions, with Cayman Islands and BVI being tax-exempt; Hong Kong profits tax is 16.5% (8.25% for eligible entities); Mainland China subsidiaries enjoy preferential tax rates based on high-tech enterprise or small and micro enterprise qualifications, resulting in an income tax credit during the reporting period - Cayman Islands and British Virgin Islands are exempt from any taxation[20][21] - Hong Kong profits tax is levied at 16.5%, with eligible subsidiaries taxed at 8.25% on the first HKD 2,000,000 of assessable profits[21] - Mainland China subsidiaries enjoy preferential tax rates: high-tech enterprises (15%), small and micro enterprises (5% on the first RMB 1,000,000, 10% on the remaining less than RMB 3,000,000)[22] Total Income Tax Credit | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Deferred | (500) | (380) | | Total Tax Credit for the Period | (500) | (380) | Finance Costs During the reporting period, the Group's finance costs significantly decreased, primarily due to reduced interest on bank loans and lease liabilities Finance Costs Comparison | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Interest on Bank Loans | 405 | 1,006 | | Interest on Lease Liabilities | 68 | 136 | | Total | 473 | 1,142 | Dividends The company approved a final dividend of HK 0.18 cents per share for 2024 on May 23, 2025, totaling HKD 3,681,000, which was fully paid on June 23, 2025 - A final dividend of HK 0.18 cents per share for 2024, totaling HKD 3,681,000, was approved on May 23, 2025[24] - The related dividend was fully paid on June 23, 2025[24] Earnings Per Share Attributable to Ordinary Equity Holders of the Parent For the six months ended June 30, 2025, basic and diluted earnings per share attributable to owners of the parent were RMB 0.53 cents, an increase from RMB 0.38 cents in the prior year, calculated based on profit for the period and weighted average number of ordinary shares outstanding Earnings Per Share Comparison | Indicator | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Parent for the Period | RMB 10,900,000 | RMB 7,800,000 | | Weighted Average Number of Ordinary Shares Outstanding | 2,044,947,350 shares | 2,044,947,350 shares | | Basic and Diluted Earnings Per Share | RMB 0.53 cents | RMB 0.38 cents | - The Group had no potentially dilutive ordinary shares outstanding during the reporting period[25] Property, Plant and Equipment For the six months ended June 30, 2025, the Group's cost of assets purchased was RMB 58,379, an increase from the prior year Asset Purchase Cost Comparison | Item | 2025 H1 (RMB) | 2024 H1 (RMB) | | :--- | :--- | :--- | | Cost of Assets Purchased | 58,379 | 11,574 | - Assets with zero net book value were disposed of during the reporting period[26] Trade and Bills Receivables As of June 30, 2025, the Group's net trade receivables increased, while bills receivables significantly decreased, leading to an overall decline in total trade and bills receivables; overdue balances are regularly reviewed by senior management Trade and Bills Receivables Comparison | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables | 188,774 | 172,328 | | Impairment | (23,701) | (20,855) | | Net Trade Receivables | 165,073 | 151,473 | | Bills Receivables | 262 | 30,688 | | Total | 165,335 | 182,161 | Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 6 months | 131,759 | 123,330 | | 6 to 12 months | 25,018 | 19,557 | | Over 12 months | 31,997 | 29,441 | | Total | 188,774 | 172,328 | Trade and Bills Payables As of June 30, 2025, the Group's total trade and bills payables significantly decreased, primarily due to a substantial reduction in payables within 30 days Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 30 days | 100,672 | 154,339 | | 31 to 60 days | 1,793 | 3,868 | | 61 to 90 days | – | 1,337 | | Over 90 days | 4,926 | 2,549 | | Total | 107,391 | 162,093 | - Trade payables are non-interest bearing and typically settled within 30 to 90 days, with carrying amounts approximating fair values[30] Share Capital As of June 30, 2025, the company's issued and fully paid share capital remained unchanged at 2,044,947,350 ordinary shares of HKD 0.01 each, equivalent to RMB 18,654,000 Share Capital Information | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of Issued and Fully Paid Ordinary Shares | 2,044,947,350 shares | 2,044,947,350 shares | | Par Value Per Share | HKD 0.01 | HKD 0.01 | | RMB Equivalent | RMB 18,654,000 | RMB 18,654,000 | Pledged Assets As of June 30, 2025, pledged bank deposits of RMB 4,786,000 were restricted due to judicial freezing - As of June 30, 2025, pledged bank deposits of RMB 4,786,000 were restricted due to judicial freezing[32] Related Party Transactions and Balances The Group's bank financing and borrowings are guaranteed by controlling shareholder Ms. Ding Xinyun, and key management personnel's remuneration slightly increased during the reporting period Bank Financing and Borrowings Guaranteed by Related Party | Guarantor | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Ms. Ding Xinyun (Controlling Shareholder) | 175,000 | 175,000 | Key Management Personnel Remuneration Comparison | Item | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | | :--- | :--- | :--- | | Salaries, Allowances and Benefits in Kind | 1,666 | 1,648 | | Contributions to Retirement Benefit Schemes | 146 | 95 | | Total | 1,812 | 1,743 | Fair Value and Fair Value Hierarchy of Financial Instruments The fair values of the Group's financial assets and liabilities approximate their respective carrying amounts, mainly due to their short-term maturity; the company has a corporate finance team responsible for fair value measurement policies and procedures, approved by the CFO - The fair values of the Group's financial assets and financial liabilities approximate their respective carrying amounts, mainly due to their short-term maturity[36] - The corporate finance team is responsible for determining policies and procedures for fair value measurement of financial instruments, reporting directly to the Chief Financial Officer, with valuations approved by the Chief Financial Officer[37] Events After the Reporting Period The Group had no significant events after June 30, 2025, up to the date of approval of the financial statements - The Group had no significant events after June 30, 2025, and up to the date of approval of the financial statements[38] Approval of Unaudited Condensed Consolidated Interim Financial Statements The unaudited condensed consolidated interim financial statements were approved and authorized for issue by the Board on August 22, 2025 - The unaudited condensed consolidated interim financial statements were approved and authorized for issue by the Board on August 22, 2025[39] Management Discussion and Analysis This section provides a detailed review of the company's business performance during the reporting period, particularly advancements in cloud services and generative AI, and outlines future strategic directions, along with an in-depth analysis of financial position, corporate governance, employee policies, and other important matters Business Review In H1 2025, the Group adhered to its Data+AI strategy, leveraging AI R&D capabilities and IT infrastructure and cloud service advantages to rapidly implement AI vertical industry applications and drive product AI-ization and high-value transformation, achieving significant results - The Group adhered to its Data+AI strategy, leveraging AI R&D capabilities and IT infrastructure and cloud service advantages to rapidly implement AI vertical industry applications[40] - It promoted product AI-ization and high-value transformation, achieving significant operating results and positive market feedback[40] Core Business – Cloud Services and Generative AI During the reporting period, cloud services and generative AI business revenue was approximately RMB 211.6 million, with a gross profit margin of 6.3%; the Group, as an independent third-party cloud managed service provider, offers comprehensive cloud solutions; its self-developed Yi AI Enterprise Intelligent Assistant and eCopilot Office AI Assistant rapidly responded to the market, obtaining multiple certifications and successfully deploying in finance, retail, and education sectors Cloud Services and Generative AI Business Performance | Indicator | 2025 H1 | | :--- | :--- | | Business Revenue | Approximately RMB 211.6 million | | Gross Profit Margin | 6.3% | - The Group acts as an independent third-party cloud managed service provider (MSP), offering domestic and international basic cloud resources and comprehensive cloud solutions[41] - Self-developed Yi AI Enterprise Intelligent Assistant and eCopilot Office AI Assistant have passed Huawei Cloud platform professional certification, Huawei Kunpeng/Ascend domestic technology certification, and successfully listed on AWS overseas Marketplace, achieving scaled deployment in finance, retail, and education markets[42][44][45][46] IT Infrastructure Services During the reporting period, IT infrastructure services revenue was RMB 168.9 million, a 14.8% year-on-year increase, with a gross profit margin of 8.3%, a 2.0% year-on-year decrease; the Group, through its partnership with H3C, holds a leading position in virtualization services IT Infrastructure Services Business Performance | Indicator | 2025 H1 | Year-on-Year Growth | | :--- | :--- | :--- | | Business Revenue | RMB 168.9 million | 14.8% | | Gross Profit Margin | 8.3% | Decreased by 2.0% | - The Group's IT infrastructure services cover hardware, network components, operating systems, data storage, and technical operation and maintenance services[47] - Successfully joined the "H3C Virtualization Software Sales Alliance," aiming to secure a leading position in the domestic virtual machine market[47] IT Implementation and Business Application Services During the reporting period, IT implementation and business application services revenue was approximately RMB 75.2 million, a 12.0% year-on-year increase, with a gross profit margin of 35.4%, a 7.0% year-on-year increase; the Group provides business application, data and cybersecurity, infrastructure, and modern office solutions to enterprises using AI-driven tools and digital transformation methods; as a key Huawei Cloud ecosystem partner, the Group participates in the "Huawei Cloud AI Application Innovation Leading Program" IT Implementation and Business Application Services Business Performance | Indicator | 2025 H1 | Year-on-Year Growth | | :--- | :--- | :--- | | Business Revenue | Approximately RMB 75.2 million | 12.0% | | Gross Profit Margin | 35.4% | Increased by 7.0% | - The Group utilizes AI-driven tools and comprehensive digital transformation methods to provide business application, data and cybersecurity, infrastructure, and modern office solutions[48] - As a key Huawei Cloud ecosystem partner, it was invited to participate in the "Huawei Cloud AI Application Innovation Leading Program" to accelerate AI application deployment across various industries[49] Outlook The Group will continue to advance its Data+AI strategy, especially in GenAI, by iterating and innovating AI products, promoting the deployment of core AI products across multiple industries, and enhancing product value and profitability through AI, to capitalize on the strong growth opportunities in the cloud and AI market - Gartner data shows the global cloud computing market reached USD 692.9 billion in 2024, with a 20.3% year-on-year growth, projected to approach USD 2 trillion by 2030[50] - The Group will fully commit to its Data+AI strategy, particularly in the GenAI domain, continuously monitoring global top large models and GenAI trends, and providing competitive customized solutions that meet customer business requirements[50] Continuously Advancing Data+AI Strategy and Iterating AI Product Innovation The Group will fully commit to its Data+AI strategy, especially in GenAI, continuously monitoring global top large models and GenAI trends, and providing competitive customized solutions, aiming to take a proactive stance in the new wave of intelligence and achieve long-term sustainable business growth - The Group will fully commit to its Data+AI strategy, particularly in the GenAI domain, continuously monitoring global top large models and GenAI trends[50] - It aims to provide competitive customized solutions that meet customer business requirements, taking a proactive stance in the new wave of intelligence to achieve long-term sustainable business growth[50] Promoting Multi-Industry Deployment of Core AI Products eCopilot, an AI office assistant plugin, has completed localization and domestic technology adaptation, and successfully listed on leading domestic and international cloud vendor marketplaces, with future plans to enhance industry-specific customization capabilities; Yi AI Enterprise Intelligent Assistant, a commercial enterprise intelligent application platform, supports AI Agent and MCP toolbox, transforming AI from a general capability into industry productivity, enabling replicable and scalable solutions - eCopilot has completed localization and domestic technology adaptation, and successfully listed on leading domestic and international cloud vendor marketplaces, with future plans to enhance industry-specific customization capabilities[51] - Yi AI Enterprise Intelligent Assistant supports AI Agent and MCP toolbox, enabling deep integration with various vertical industries, transforming AI from a general capability into industry productivity[52] - By deeply understanding customer business needs, it aims to achieve deep application of AI in enterprise business and form replicable and scalable solutions[52] AI-Driven Enhancement of Product Value and Profitability The company significantly enhances the value of its self-developed products through vigorous R&D and promotion of AI products and deep application of AI technology, committed to continuous growth in product value and sustainable improvement in profitability - Deep application of AI technology in products has significantly enhanced the value of the company's self-developed products[53] - The company is committed to continuously growing product value and sustainably improving profitability through vigorous R&D and promotion of AI products[53] Financial Review This section details the changes in various financial indicators during the reporting period, including revenue, costs, profits, expenses, impairments, finance costs, taxes, profit for the period, pledged assets, capital expenditures, prepayments, litigation, liquidity, and capital structure, revealing the drivers and risk profile of the company's financial performance - Profit attributable to owners of the parent was approximately RMB 10.9 million, an increase of approximately 40.8% compared to the same period last year[66] - As of June 30, 2025, the Group's gearing ratio was 15.6%, a significant decrease from 38.0% as of December 31, 2024[72] Revenue For the six months ended June 30, 2025, the Group's revenue was approximately RMB 455.7 million, a 9.5% year-on-year decrease, primarily due to reduced revenue from the cloud and AI services segment Revenue Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 455.7 | 503.6 | -9.5% | - The decrease in revenue was primarily due to a reduction in the cloud and AI services segment compared to the same period last year[54] Cost of Sales The Group's cost of sales decreased by 9.1% from approximately RMB 441.7 million in the same period of 2024 to approximately RMB 401.8 million in H1 2025, a reduction broadly consistent with the decrease in revenue for the period Cost of Sales Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of Sales | 401.8 | 441.7 | -9.1% | - The decrease in cost of sales was broadly consistent with the decrease in revenue for the same period[55] Gross Profit and Gross Profit Margin The Group's gross profit decreased by 12.8% from approximately RMB 61.8 million in the same period of 2024 to approximately RMB 53.9 million in H1 2025; the gross profit margin decreased from 12.3% to 11.8%, mainly due to lower margins to expand existing customers and win orders Gross Profit and Gross Profit Margin Comparison | Indicator | 2025 H1 (RMB thousand) | 2024 H1 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 53,946 | 61,835 | -12.8% | | Gross Profit Margin | 11.8% | 12.3% | -0.5 percentage points | - The decrease in gross profit margin was primarily due to lower margins to expand new industry customers and win orders[57] Other Income and Gains Other income and gains decreased by 12.4% from approximately RMB 1.0 million in the same period of 2024 to approximately RMB 0.9 million in H1 2025, mainly due to reduced government grants during the reporting period Other Income and Gains Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Other Income and Gains | 0.9 | 1.0 | -12.4% | - The decrease was primarily due to reduced government grants during the reporting period[58] Selling and Distribution Expenses Selling and distribution expenses decreased by 6.3% from approximately RMB 16.2 million in the same period of 2024 to approximately RMB 15.2 million in H1 2025, primarily due to a decrease in staff costs Selling and Distribution Expenses Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 15.2 | 16.2 | -6.3% | - The decrease was primarily due to a decrease in staff costs incurred during the reporting period[59] Administrative Expenses Administrative expenses decreased by 20.1% from approximately RMB 12.8 million in the same period of 2024 to approximately RMB 10.2 million in H1 2025, primarily due to a decrease in staff costs Administrative Expenses Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 10.2 | 12.8 | -20.1% | - The decrease was primarily due to a decrease in staff costs incurred during the reporting period[60] Research and Development Expenses Research and development expenses decreased by 33.8% from approximately RMB 23.0 million in the same period of 2024 to approximately RMB 15.2 million in H1 2025, primarily due to a strategic adjustment in the direction of some projects, leading to a short-term cost reduction Research and Development Expenses Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Research and Development Expenses | 15.2 | 23.0 | -33.8% | - The decrease was primarily due to a strategic adjustment in the direction of some projects during the reporting period, leading to a short-term cost reduction[61] Other Expenses The Group's other expenses decreased by 55.3% from approximately RMB 1.0 million in the same period of 2024 to approximately RMB 0.4 million in H1 2025, primarily due to a narrower fluctuation in the RMB exchange rate against the USD, leading to reduced foreign exchange losses Other Expenses Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Other Expenses | 0.4 | 1.0 | -55.3% | - The decrease was primarily due to a narrower fluctuation in the RMB exchange rate against the USD during the reporting period, leading to reduced foreign exchange losses for the Group[62] Impairment Recognized During the reporting period, the Group recognized an impairment of approximately RMB 2.9 million for trade and bills receivables, an increase from approximately RMB 1.4 million in the same period of 2024, due to higher bad debt provisions based on the ageing of receivables Impairment of Trade and Bills Receivables Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Impairment of Trade and Bills Receivables | 2.9 | 1.4 | +107.1% | - The increase in impairment was due to higher bad debt provisions based on the ageing of receivables[63] Finance Costs Finance costs decreased by 58.6% from approximately RMB 1.1 million in the same period of 2024 to approximately RMB 0.5 million in H1 2025, due to reduced borrowings and interest expenses during the reporting period Finance Costs Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 0.5 | 1.1 | -58.6% | - The decrease was due to reduced borrowings and interest expenses during the reporting period[64] Income Tax Credit Income tax credit increased by 31.5% from approximately RMB 0.4 million in the same period of 2024 to approximately RMB 0.5 million in H1 2025, primarily due to an increase in deferred tax credit resulting from increased provisions for trade receivables Income Tax Credit Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Income Tax Credit | 0.5 | 0.4 | +31.5% | - The increase in deferred tax credit was primarily due to increased provisions for trade receivables during the six months ended June 30, 2025[65] Profit Attributable to Owners of the Parent for the Period The Group recorded a profit attributable to owners of the parent of approximately RMB 10.9 million during the reporting period, an increase of 40.8% compared to approximately RMB 7.8 million in the same period of 2024 Profit Attributable to Owners of the Parent for the Period Comparison | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Profit Attributable to Owners of the Parent for the Period | 10.9 | 7.8 | +40.8% | Pledged Assets As of June 30, 2025, pledged bank deposits of approximately RMB 4.8 million were restricted due to judicial freezing related to litigation - As of June 30, 2025, pledged bank deposits of approximately RMB 4.8 million were restricted due to judicial freezing related to litigation[67] Capital Expenditure and Commitments As of June 30, 2025, the Group's capital expenditure for equipment purchases was RMB 58,379, an increase from December 31, 2024; the Group had no contracted but unprovided commitments Capital Expenditure Comparison | Indicator | June 30, 2025 (RMB) | December 31, 2024 (RMB) | | :--- | :--- | :--- | | Capital Expenditure for Equipment Purchases | 58,379 | 36,000 | - As of June 30, 2025, the Group had no contracted but unprovided commitments[68] Prepayments, Deposits and Other Receivables As of June 30, 2025, the Group's prepayments, deposits, and other receivables were approximately RMB 12.6 million, a 42.6% decrease from December 31, 2024, primarily due to a reduction in tax receivables (recoverable VAT) Prepayments, Deposits and Other Receivables Comparison | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Prepayments, Deposits and Other Receivables | 12.6 | 21.9 | -42.6% | - The decrease was primarily due to a reduction of approximately RMB 7.7 million in tax receivables (i.e., recoverable VAT) during the reporting period[69] Litigation and Contingent Liabilities Shenzhen Edensoft, a subsidiary of the Group, was claimed by a supplier for contract payment disputes, resulting in approximately RMB 4.8 million in its bank accounts being judicially frozen; other than this, the Group had no significant contingent liabilities - Shenzhen Edensoft was claimed by a supplier for contract payment disputes (approximately RMB 3.38 million)[70] - As of June 30, 2025, approximately RMB 4.8 million in Shenzhen Edensoft's bank accounts was judicially frozen[70] - Other than the above disclosure, the Group had no significant contingent liabilities[70] Liquidity and Financial Resources As of June 30, 2025, the Group's total current assets and cash and cash equivalents both decreased, but total equity increased; the gearing ratio significantly decreased to 15.6% Liquidity and Financial Resources Comparison | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Current Assets | 319.0 | 416.2 | -23.4% | | Cash and Cash Equivalents | 71.3 | 84.2 | -15.3% | | Pledged Deposits | 4.8 | 4.8 | 0% | | Total Equity | 207.6 | 200.8 | +3.4% | | Gearing Ratio | 15.6% | 38.0% | -22.4 percentage points | Capital Structure and Exchange Rate Risk The Group's capital structure comprises debt and equity attributable to owners of the parent; the Board reviews the capital structure semi-annually and considers balancing it through new share issues, share repurchases, new debt issuance, or redemption of existing debt; the Group's monetary assets, liabilities, and transactions are primarily denominated in RMB, with no exchange rate hedging, but risks are closely monitored - The Group's capital structure comprises debt (interest-bearing bank borrowings, lease liabilities, financial liabilities from trade and other payables) and equity attributable to owners of the parent[74] - The Board reviews the capital structure semi-annually and considers balancing it through new share issues, share repurchases, new debt issuance, or redemption of existing debt[74] - The Group's monetary assets, liabilities, and transactions are primarily denominated in RMB, with no exchange rate hedging, but this risk is closely monitored[74] Interest Rate Risk The Group faces fair value interest rate risk from fixed-rate bank borrowings and cash flow interest rate risk from market interest rate fluctuations on bank deposits and borrowings; the Group has not entered into derivative agreements or used financial instruments to hedge interest rate risk, but management monitors and considers hedging when necessary - The Group faces fair value interest rate risk from fixed-rate bank borrowings and cash flow interest rate risk from market interest rate fluctuations on bank deposits and borrowings[75] - The Group has not entered into derivative agreements or used financial instruments to hedge interest rate risk[75] - Management monitors interest rate risk and will consider hedging significant interest rate risks when necessary[75] Employees and Remuneration Policy As of June 30, 2025, the Group employed 251 staff, with total employee benefit expenses of approximately RMB 34.2 million; remuneration policy considers market levels, employee responsibilities, and Group performance, offering basic salaries, fringe benefits, and discretionary bonuses; the Group also provides continuous education and training, and has adopted a share option scheme to attract and retain talent Employee Headcount and Benefit Expenses Comparison | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Employee Headcount | 251 persons | 234 persons | | Total Employee Benefit Expenses | Approximately RMB 34.2 million | Approximately RMB 36.1 million | - Remuneration is determined by reference to market salary levels paid by comparable companies, individual employee responsibilities, and the Group's performance[76] - The Group provides continuous education and training courses, and has adopted a share option scheme to recognize and reward employee contributions[77] Share Option Scheme The company adopted a share option scheme on April 14, 2020, to attract and retain talent and promote business development; as of June 30, 2025, no share options were granted, exercised, cancelled, or lapsed - The company adopted a share option scheme on April 14, 2020, to attract and retain competent personnel and provide additional incentives[78] - As of June 30, 2025, no share options were granted, exercised, cancelled, or lapsed[78] Share Award Scheme The company adopted a share award scheme to reward eligible participants who contribute to the Group's business success; the scheme became effective on November 9, 2021, for a period of 10 years; on March 23, 2022, the Board granted 44,947,350 award shares to 42 selected employees - The company adopted a share award scheme to reward eligible participants who contribute to the Group's business success[79] - The scheme became effective on November 9, 2021, for a period of 10 years from the adoption date[79] - On March 23, 2022, the Board granted 44,947,350 award shares to 42 selected employees, representing approximately 2.25% of the issued share capital at the adoption date[81] Dividends The Board does not recommend an interim dividend for the reporting period - The Board does not recommend an interim dividend for the reporting period (June 30, 2024: nil)[82] Material Investments, Significant Acquisitions or Disposals of Subsidiaries and Affiliated Companies The Group held no material investments or conducted any significant acquisitions or disposals of subsidiaries and affiliated companies during the reporting period, nor did it have any plans for material investments or capital assets - The Group held no material investments or conducted any significant acquisitions or disposals of subsidiaries and affiliated companies during the reporting period[83] - As of June 30, 2025, the Group had no plans for material investments or capital assets[83] Repurchase, Sale or Redemption of the Company's Securities For the six months ended June 30, 2025, and up to the date of this announcement, neither the company nor any of its subsidiaries repurchased, sold, or redeemed any of the company's securities, and the company held no treasury shares - For the six months ended June 30, 2025, and up to the date of this announcement, neither the company nor any of its subsidiaries repurchased, sold, or redeemed any of the company's securities[84] - As of June 30, 2025, the company held no treasury shares[84] Compliance with Corporate Governance Code The company is committed to high standards of corporate governance and has complied with Appendix C1 of the Listing Rules Corporate Governance Code, except for a deviation from code provision C.2.1 (non-segregation of roles of Chairman and Chief Executive); the Board believes Ms. Ding Xinyun's dual role benefits the Group's operations and management and will review the role segregation when appropriate - The company has complied with Appendix C1 of the Listing Rules Corporate Governance Code, except for a deviation from code provision C.2.1[85] - Code provision C.2.1 stipulates that the roles of Chairman and Chief Executive should be separate and not performed by the same individual; Ms. Ding Xinyun holds both positions[86] - The Board believes Ms. Ding's dual role benefits the Group's business operations and management and will review the role segregation when appropriate[86][87] Standard Code for Securities Transactions by Directors The company has adopted the Standard Code set out in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions; upon enquiry, all directors confirmed compliance with the required dealing standards during the reporting period - The company has adopted the Standard Code set out in Appendix C3 of the Listing Rules as its code of conduct for directors' securities transactions[88] - All directors confirmed compliance with the required dealing standards set out in the Standard Code for the six months ended June 30, 2025, and up to the date of this announcement[88] Review of Results by Audit Committee The company's Audit Committee has reviewed the Group's unaudited condensed consolidated interim results for the period ended June 30, 2025, and found the statements to comply with applicable accounting standards, Listing Rules, and legal requirements, with sufficient disclosures made - The Audit Committee has reviewed the Group's unaudited condensed consolidated interim results for the period ended June 30, 2025[89] - The Audit Committee believes the statements comply with applicable accounting standards, Listing Rules, and legal requirements, and that sufficient disclosures have been made[89] Events After the Reporting Period The Group had no significant events after June 30, 2025, up to the date of approval of the financial statements - The Group had no significant events after June 30, 2025, and up to the date of approval of the financial statements[90] Publication of Interim Results Announcement and 2025 Interim Report on HKEX and Company Websites This interim results announcement has been published on the HKEX website and the company's website, and the 2025 Interim Report, containing all information required by the Listing Rules, will be published on the aforementioned websites in due course - This interim results announcement has been published on the HKEX website (www.hkexnews.hk) and the company's website (www.edensoft.com.cn)[91](index=91&type=chunk) - The 2025 Interim Report, containing all information required by the Listing Rules, will be published on the aforementioned websites in due course[91] Board of Directors As of the date of this announcement, the Board of Directors includes Executive Directors Ms. Ding Xinyun (Chairman and Chief Executive Officer) and Ms. Li Yi, and Independent Non-executive Directors Mr. Leung Chu Tung, Ms. Zhu Weili, and Mr. Cai Jiong - The Board of Directors includes Executive Directors Ms. Ding Xinyun (Chairman and Chief Executive Officer) and Ms. Li Yi[93] - Independent Non-executive Directors include Mr. Leung Chu Tung, Ms. Zhu Weili, and Mr. Cai Jiong[93]