易点云(02416) - 2025 - 中期业绩

Financial Performance Summary Financial Performance Summary Edianyun Limited's unaudited interim results for the first half of 2025 show an 8.2% increase in revenue to RMB 699.6 million, with profit and total comprehensive income surging by 177.6% to RMB 45.745 million, alongside significant growth in adjusted net profit and adjusted EBITDA Financial Data Overview (Six Months Ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 699,640 | 646,888 | 8.2 | | Cost of sales | (411,700) | (369,917) | 11.3 | | Gross profit | 287,940 | 276,971 | 4.0 | | Profit before tax | 54,064 | 21,269 | 154.2 | | Profit and total comprehensive income for the period | 45,745 | 16,481 | 177.6 | | Adjusted net profit* | 51,179 | 30,714 | 66.6 | | Adjusted EBITDA* | 384,989 | 320,628 | 20.1 | *Note: Adjusted net profit is net profit after adding back share-based payment expenses; Adjusted EBITDA is EBITDA after adding back net finance costs, income tax expense, depreciation, amortization, and share-based payment expenses Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income In the first half of 2025, the company's revenue grew by 8.2% and gross profit by 4.0%, while sales and marketing, R&D, and general and administrative expenses all decreased, with general and administrative expenses seeing the largest reduction of 39.8%, leading to a significant 177.6% increase in profit and total comprehensive income for the period Key Profit or Loss Statement Data (Six Months Ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 699,640 | 646,888 | | Cost of sales | (411,700) | (369,917) | | Gross profit | 287,940 | 276,971 | | Sales and marketing expenses | (81,293) | (80,726) | | Research and development expenses | (29,978) | (32,987) | | General and administrative expenses | (42,622) | (70,830) | | Other income | 7,259 | 6,811 | | Net other gains and losses | (8,670) | (6,372) | | Impairment losses under expected credit loss model | (15,495) | (13,704) | | Finance costs | (63,077) | (57,894) | | Profit before tax | 54,064 | 21,269 | | Income tax expense | (8,319) | (4,788) | | Profit and total comprehensive income for the period | 45,745 | 16,481 | | Basic earnings per share (RMB) | 0.09 | 0.03 | | Diluted earnings per share (RMB) | 0.09 | 0.03 | Condensed Consolidated Statement of Financial Position Condensed Consolidated Statement of Financial Position As of June 30, 2025, the company's total assets slightly increased to RMB 3,515.6 million, total liabilities slightly decreased to RMB 2,253.2 million, and total equity increased to RMB 1,262.3 million, with significant increases in right-of-use assets under non-current assets and trade and other receivables under current assets Key Balance Sheet Data (As of June 30, 2025 vs December 31, 2024) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Assets | | | | Total non-current assets | 2,408,709 | 2,375,438 | | Total current assets | 1,106,858 | 1,138,377 | | Total assets | 3,515,567 | 3,513,815 | | Equity and Liabilities | | | | Total equity | 1,262,337 | 1,235,750 | | Total non-current liabilities | 900,983 | 897,603 | | Total current liabilities | 1,352,247 | 1,380,462 | | Total liabilities | 2,253,230 | 2,278,065 | | Total equity and liabilities | 3,515,567 | 3,513,815 | - Current assets were RMB 245.4 million less than current liabilities, but management believes there are sufficient financial resources for continuous operation in the next 12 months based on operating cash flow and financing plans[10] Notes to the Condensed Consolidated Financial Statements 1. General Information The condensed consolidated financial statements are presented in Renminbi as both the functional and presentation currency - The condensed consolidated financial statements are presented in Renminbi, which is also the functional currency of the Company[9] 2. Basis of Preparation of Condensed Consolidated Financial Statements The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the HKEX Listing Rules; despite current assets being less than current liabilities, management believes the company can continue as a going concern based on cash flow forecasts and available financial resources - The statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the HKEX Listing Rules[10] - As of June 30, 2025, current assets were RMB 245.4 million less than current liabilities, but management expects sufficient financial resources to meet working capital needs for the next 12 months, thus preparing the statements on a going concern basis[10] 3. Accounting Policies The condensed consolidated financial statements are prepared on a historical cost basis, except for financial instruments measured at fair value, and the application of IAS 21 (amended) "Lack of Exchangeability" had no material impact on financial position or performance - The condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value[11] - The revised International Accounting Standard 21 "Lack of Exchangeability" was first applied in the current period, but it had no material impact on the financial position and performance[12][13] 4. Revenue and Segment Information The company's primary business is providing integrated office IT solutions and other services, with only one reportable segment; all revenue and non-current assets are derived from China, and total revenue for the first half of 2025 was RMB 699.6 million, an 8.2% increase, primarily driven by pay-per-use office IT integrated solutions - The company's main business is providing integrated office IT solutions and other services, with only one reportable segment[14] - All revenue and non-current assets are derived from China, with no single external customer accounting for more than 10% of revenue[14] Revenue Composition (Six Months Ended June 30) | Revenue Source | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Pay-per-use office IT integrated solutions revenue | 625,893 | 576,875 | | Equipment sales | 67,915 | 64,077 | | SaaS and other services | 5,832 | 5,936 | | Total | 699,640 | 646,888 | - Within pay-per-use office IT integrated solutions revenue, RMB 347.1 million was recognized as lease income under IFRS 16, and RMB 278.8 million was from office IT technical subscription services[16] - Revenue recognition timing: equipment sales are recognized at a point in time, while office IT technical subscription services, SaaS, and other services are recognized over a period of time[17] 5. Other Income Other income for the first half of 2025 increased by 6.6% to RMB 7.259 million, primarily due to an increase in government grants Other Income Details (Six Months Ended June 30) | Income Source | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank interest income | 1,685 | 3,554 | | Installment sales receivables interest income | 362 | 598 | | Government grants | 4,046 | 1,293 | | Compensation income | 1,166 | 1,366 | | Total | 7,259 | 6,811 | - Government grants primarily came from Beijing and Chengdu local governments, supporting foreign-invested enterprises, high-tech enterprises, and employment stability[25] 6. Net Other Gains and Losses Net other gains and losses for the first half of 2025 resulted in a loss of RMB 8.67 million, a 36.1% increase in loss compared to the same period last year, mainly due to increased write-off losses on leased computer equipment Net Other Gains and Losses Details (Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Fair value changes in financial assets at fair value through profit or loss | 1,806 | 3,527 | | Subscription fees for financial assets at fair value through profit or loss | (718) | – | | Write-off losses on leased computer equipment | (8,580) | (11,218) | | Others | (1,178) | 1,319 | | Total | (8,670) | (6,372) | - Write-off losses on leased computer equipment refer to losses recognized when the company deems amounts unrecoverable from customers overdue for more than 6 months[26] 7. Impairment Losses Under Expected Credit Loss Model, Net of Reversals Net impairment losses under the expected credit loss model for the first half of 2025 were RMB 15.495 million, a 13.1% increase year-on-year, primarily due to increased trade receivables driven by revenue growth Impairment Losses Details (Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables | 15,425 | 14,262 | | Other receivables | 70 | (558) | | Total | 15,495 | 13,704 | - The increase in impairment losses was mainly due to the increase in trade receivables resulting from the company's revenue growth[68] 8. Finance Costs Finance costs for the first half of 2025 were RMB 63.077 million, a 9.0% increase year-on-year, primarily due to increased financing scale driven by market expansion and higher equipment procurement, despite a decrease in financing interest rates Finance Costs Details (Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest on borrowings | 46,539 | 43,531 | | Interest on lease liabilities | 16,538 | 14,363 | | Total | 63,077 | 57,894 | - The increase in finance costs was mainly due to the company's expanded market scale and increased equipment procurement, leading to an increase in financing scale[69] 9. Income Tax Expense Income tax expense for the first half of 2025 was RMB 8.319 million, a significant increase from RMB 4.788 million in the same period last year, primarily due to the recognition of deferred tax Income Tax Expense Details (Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current corporate income tax | 188 | 153 | | Deferred tax | 8,131 | 4,635 | | Total | 8,319 | 4,788 | - The increase in income tax expense was mainly due to the recognition of deferred tax[70] 10. Earnings Per Share Both basic and diluted earnings per share for the first half of 2025 were RMB 0.09, a substantial increase from RMB 0.03 in the same period last year Earnings Per Share Data (Six Months Ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the period used to calculate basic earnings per share (RMB thousands) | 45,745 | 16,481 | | Weighted average number of ordinary shares used to calculate basic earnings per share | 529,106,424 | 577,795,367 | | Basic earnings per share (RMB) | 0.09 | 0.03 | | Diluted earnings per share (RMB) | 0.09 | 0.03 | - The 12,939,000 ordinary shares repurchased by the company in the first half of 2025 were not included in the calculation of basic earnings per share[29] - When calculating diluted earnings, some share options were not considered because their exercise price was higher than the average market price[30] 11. Dividends The Board of Directors decided not to pay dividends for the first half of 2025, consistent with the same period last year - No dividends were paid, declared, or proposed for the first half of 2025[31][95] 12. Trade and Other Receivables and Prepayments As of June 30, 2025, total trade and other receivables and prepayments amounted to RMB 574.7 million, an increase from December 31, 2024, with current portion totaling RMB 410.4 million and non-current portion totaling RMB 164.4 million Trade and Other Receivables and Prepayments (As of June 30, 2025 vs December 31, 2024) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables (net of allowance for credit losses) | 137,162 | 134,520 | | Other receivables and prepayments | 437,579 | 380,284 | | Total | 574,741 | 514,804 | | Total current portion | 410,381 | 339,695 | | Total non-current portion | 164,360 | 175,109 | - Trade receivables aging analysis shows that receivables within 30 days accounted for the largest portion, at RMB 113.8 million[32] 13. Trade and Other Payables As of June 30, 2025, total trade and other payables amounted to RMB 126.0 million, an increase from December 31, 2024, primarily due to an increase in trade payables Trade and Other Payables (As of June 30, 2025 vs December 31, 2024) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade payables | 63,508 | 34,907 | | Accrued salaries and welfare | 31,194 | 40,733 | | Others | 31,314 | 29,801 | | Total | 126,016 | 105,441 | - Trade payables aging analysis shows that payables within 12 months accounted for the largest portion, at RMB 49.305 million[33] 14. Share Capital As of June 30, 2025, the company's issued share capital was 533,987,643 shares, a decrease from January 1, 2025, primarily due to the repurchase and cancellation of 46,013,500 shares, partially offset by the exercise of share options which added 940,627 shares Share Capital Changes (As of June 30, 2025) | Item | Number of Shares | Amount (USD) | Amount (RMB thousands) | | :--- | :--- | :--- | :--- | | January 1, 2025 (audited) | 579,060,516 | 28,954 | 200 | | Exercise of share options | 940,627 | 47 | – * | | Shares repurchased and cancelled | (46,013,500) | (2,301) | (17) | | June 30, 2025 (unaudited) | 533,987,643 | 26,700 | 183 | - 46,013,500 shares were repurchased and cancelled, leading to a reduction in share capital[34] Management Discussion and Analysis Business Review In the first half of 2025, the company solidified its position as an enterprise IT productivity partner by providing one-stop, reliable, and flexible office IT integrated solutions, achieving growth in active customers and in-service equipment, with primary revenue from pay-per-use office IT integrated solutions, equipment sales, and SaaS and other services - The company's mission is "making office IT easier," providing IT equipment with systems and software installed, along with managed IT services, through one-stop office IT solutions[35] - Competitive advantages include reliability (fastest nationwide service capability), flexibility (pay-per-use subscription model), and one-stop service[36] - Primary revenue sources include pay-per-use office IT integrated solutions, equipment sales, and SaaS and other services[35] - Pay-per-use office IT integrated solutions offer a comprehensive package including hardware, equipment configuration, deployment, operation and maintenance support, performance optimization, and equipment management[38] - Equipment sales include installment purchases of new equipment, subscription customers buying out used equipment, and selling used equipment through the online bidding platform "Yipaiji"[38] - The SaaS product "Yipandian" aims to help enterprise customers manage assets and inventory, charging an annual subscription fee[38] Disclosure of Key Operating Data As of June 30, 2025, active customer numbers and in-service equipment quantities continued to grow, with average monthly subscription fees per subscriber and average subscribed units per customer both increasing, while net cash retention rate remained high, indicating strong customer loyalty Key Operating Indicators (As of June 30) | Indicator | 2024 | December 31, 2024 | 2025 | | :--- | :--- | :--- | :--- | | Active customers | 49,737 | 51,024 | 52,357 | | Subscription customers | 48,705 | 50,180 | 51,769 | | Core customers | 26,436 | 27,529 | 27,709 | | SaaS customers | 2,118 | 2,164 | 2,043 | | In-service equipment | 1,329,721 | 1,374,200 | 1,480,599 | | Subscribed equipment | 1,307,215 | 1,352,687 | 1,464,452 | Key Operating Indicators (Six Months Ended June 30) | Indicator | 2024 | 2025 | | :--- | :--- | :--- | | Average monthly subscription fee per subscriber | 1,974 | 2,015 | | Average subscribed units per subscriber | 26.8 | 28.3 | | Number of equipment sold | 48,293 | 59,941 | | Net cash retention rate | 88.8% | 96.8% | | Net cash retention rate for pay-per-use office IT integrated solutions | 90.0% | 96.4% | - Equipment utilization rate remained high at 88.9%, with idle equipment reduced through comprehensive inventory management measures[41] Increase in Customer Numbers and Improvement in New Customer Quality In the first half of 2025, active customer numbers grew by 5.3% to 52,357, and core customer numbers increased by 4.8% to 27,709, with the proportion of in-service equipment for core customers rising to 86.5%, driven by more effective sales strategies, new product development, enhanced technological and scale advantages, and optimized service capabilities - Active customer numbers grew by 5.3% to 52,357, and core customer numbers increased by 4.8% to 27,709[42][43] - The proportion of in-service equipment for core customers increased from 86.2% in the first half of 2024 to 86.5% in the first half of 2025[43] - Growth drivers include more effective sales strategies, new product development and flexible product strategies, technological and scale advantages (the "Xingyun" system), and optimized service capabilities[42] - With over 1.48 million in-service equipment, increased customer density optimized engineer service efficiency and quality, leading to a stable increase in customer retention rate[43] Impact of Macroeconomic Conditions and New Product Development Facing the demand for cost reduction and efficiency improvement among SMEs amidst a "weak recovery" macroeconomic trend, the company launched its own-brand IT equipment in the first half of 2025, significantly reducing monthly subscription fees and successfully increasing the average subscribed units per old customer from 29 to 31 - The "weak recovery" macroeconomic environment led SMEs to seek cost reduction and efficiency improvement, putting pressure on average monthly subscription fees[44] - The company launched its own-brand IT equipment with lower monthly subscription fees to meet SME office IT needs and adapt to the transformation of PC demand in the AI era[44] - The combined effect of new products and sales strategies increased the average subscribed units per old customer from 29 to 31[44] AI Business Implementation and Active Exploration Responding to the surge in AI hardware demand driven by the explosion of large AI models, the company launched its self-developed Edianyun AP series workstations, supporting local deployment of large models, which received enthusiastic market response and were in short supply, helping SMEs embrace the AI wave at low cost, with continued deep cultivation in the AI field planned for the future - Observing rising market demand for AI PC hardware, the company launched its self-developed Edianyun AP series workstations, supporting local deployment of large models like DeepSeek[45] - Upon launch, this product generated significant subscription demand, leading to supply shortages, and helped SMEs achieve local deployment of large models at the lowest cost[45] - The company plans to continue deep cultivation in the AI field, leveraging its main business to connect with SME customer groups and help them build their own AI capabilities[45] Outlook The company will continue to focus on product enhancement, planning to launch key products in the second half of the year, optimize sales teams and strategies, increase R&D investment in remanufacturing technology, and sustain its ESG attributes; despite ongoing challenges for SME recovery, the company's business has returned to a growth trajectory, with office IT integrated solutions market penetration expected to continue increasing - The company will focus on product enhancement, planning to launch several key products in the second half of 2025, and actively respond to customer feedback to optimize its product matrix[46] - Sales team operations will be strengthened through recruitment and training of sales talent, and AI-based business analytics will be used to optimize sales processes and strategies[46] - Continued investment and R&D in remanufacturing technology will enhance digital intelligence capabilities, reduce costs, and provide a higher quality equipment experience[47] - The main business possesses ESG attributes, extending equipment lifespan through remanufacturing technology, reducing waste and carbon emissions[47] - Significant growth in active customers and in-service equipment indicates the company has overcome adverse factors and returned to a growth trajectory, with office IT integrated solutions market penetration expected to continue increasing[48] Significant Events After the Reporting Period Significant Events After the Reporting Period After the reporting period, between June 6 and July 9, 2025, the company subscribed to wealth management products totaling USD 26,534,700 to utilize surplus cash reserves, with an expected annualized return of 2%-4.5%, an investment period of no more than one year, and redeemable at any time - The company subscribed to cash management wealth management products totaling USD 26,534,700 between June 6 and July 9, 2025[49] - These wealth management products have an expected annualized return of 2%-4.5%, an investment period of no more than one year, are redeemable at any time, and carry low risk[84] - The subscription funds came from the Group's surplus cash reserves, aiming to enhance capital utilization and increase income from idle funds[49][83] Financial Review Revenue Total revenue for the first half of 2025 was RMB 699.6 million, an 8.2% year-on-year increase, primarily driven by pay-per-use office IT integrated solutions revenue, which accounted for 89.5% and grew by 8.5%, while equipment sales revenue increased by 6.0% and SaaS and other services revenue slightly decreased by 1.8% - Revenue for the first half of 2025 was RMB 699.6 million, an 8.2% year-on-year increase, mainly due to increased revenue from pay-per-use office IT integrated solutions[50] Revenue Composition and Growth (Six Months Ended June 30) | Revenue Source | 2025 (RMB thousands) | Share (%) | 2024 (RMB thousands) | Share (%) | Growth (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Pay-per-use office IT integrated solutions | 625,893 | 89.5% | 576,875 | 89.2% | 8.5% | | Equipment sales | 67,915 | 9.7% | 64,077 | 9.9% | 6.0% | | SaaS and other services | 5,832 | 0.8% | 5,936 | 0.9% | -1.8% | | Total | 699,640 | 100.0% | 646,888 | 100.0% | 8.2% | Pay-per-use Office IT Integrated Solutions In the first half of 2025, revenue from this business was RMB 625.9 million, an 8.5% year-on-year increase, primarily benefiting from effective sales strategies, improved sales efficiency, and rapid growth in customer numbers and average subscribed units per customer - Revenue increased by 8.5% year-on-year to RMB 625.9 million[53] - Growth was mainly attributable to effective sales strategies, significant improvement in sales efficiency, and rapid growth in customer numbers and average subscribed units per customer[53] Equipment Sales In the first half of 2025, equipment sales revenue was RMB 67.915 million, a 6.0% year-on-year increase, primarily due to an increase in the volume of equipment sold - Revenue increased by 6.0% year-on-year to RMB 67.915 million[54] - Growth was mainly due to an increase in the volume of equipment sold compared to the same period[54] SaaS and Other Services In the first half of 2025, SaaS and other services revenue was RMB 5.832 million, a 1.8% year-on-year decrease, primarily due to reduced system development revenue and external maintenance services - Revenue decreased by 1.8% year-on-year to RMB 5.832 million[55] - The decrease was mainly due to reduced system development revenue and external maintenance services[55] Cost of Sales Cost of sales for the first half of 2025 was RMB 411.7 million, an 11.3% year-on-year increase, primarily due to increased equipment depreciation costs, with pay-per-use office IT integrated solutions accounting for the largest portion and growing by 12.3% - Cost of sales increased by 11.3% year-on-year to RMB 411.7 million[56] - Primarily due to increased equipment depreciation costs[56] Cost of Sales Composition (Six Months Ended June 30) | Cost Source | 2025 (RMB thousands) | Share (%) | 2024 (RMB thousands) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Pay-per-use office IT integrated solutions | 338,890 | 82.3% | 301,701 | 81.6% | | Equipment sales | 70,613 | 17.2% | 66,963 | 18.1% | | SaaS and other services | 2,197 | 0.5% | 1,253 | 0.3% | | Total | 411,700 | 100.0% | 369,917 | 100.0% | Pay-per-use Office IT Integrated Solutions In the first half of 2025, the cost of sales for this business was RMB 338.9 million, a 12.3% year-on-year increase, primarily due to increased depreciation costs resulting from the growth in subscribed equipment - Cost of sales increased by 12.3% year-on-year to RMB 338.9 million[57] - Mainly due to increased depreciation costs resulting from the growth in subscribed equipment[57] Equipment Sales In the first half of 2025, equipment sales cost of sales was RMB 70.613 million, a 5.5% year-on-year increase, primarily due to an increase in the volume of equipment sold - Cost of sales increased by 5.5% year-on-year to RMB 70.613 million[58] - Mainly due to an increase in the volume of equipment sold compared to the same period[58] Gross Profit and Gross Profit Margin Gross profit for the first half of 2025 increased by 4.0% to RMB 287.9 million, but the gross profit margin decreased from 42.8% to 41.2%, primarily due to increased depreciation costs for pay-per-use office IT integrated solutions, while the loss rate for equipment sales decreased - Gross profit increased by 4.0% year-on-year to RMB 287.9 million[59] - Gross profit margin decreased from 42.8% to 41.2%[59] Gross Profit and Gross Profit Margin (Six Months Ended June 30) | Business Segment | 2025 Gross Profit (RMB thousands) | 2025 Gross Profit Margin (%) | 2024 Gross Profit (RMB thousands) | 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Pay-per-use office IT integrated solutions | 287,003 | 45.9% | 275,174 | 47.7% | | Equipment sales | (2,698) | (4.0%) | (2,886) | (4.5%) | | SaaS and other services | 3,635 | 62.3% | 4,683 | 78.9% | | Total Gross Profit / Total Gross Profit Margin | 287,940 | 41.2% | 276,971 | 42.8% | Pay-per-use Office IT Integrated Solutions In the first half of 2025, gross profit for this business increased by 4.3% to RMB 287.0 million, but the gross profit margin decreased from 47.7% to 45.9%, primarily due to increased depreciation costs resulting from the growth in equipment numbers - Gross profit increased by 4.3% year-on-year to RMB 287.0 million[62] - Gross profit margin decreased from 47.7% to 45.9%, mainly due to increased depreciation costs resulting from the growth in equipment numbers[62] Equipment Sales In the first half of 2025, equipment sales loss decreased by 6.5% to RMB 2.7 million, and the loss rate decreased from 4.5% to 4.0%, primarily due to the company adjusting its sales strategies and product categories based on market conditions - Equipment sales loss decreased by 6.5% to RMB 2.7 million[63] - The loss rate decreased from 4.5% to 4.0%, mainly due to the company adjusting its sales strategies and product categories according to market conditions[63] Research and Development Expenses Research and development expenses for the first half of 2025 were RMB 30.0 million, a 9.1% year-on-year decrease, primarily due to lower cloud server costs and improved bargaining power - Research and development expenses decreased by 9.1% year-on-year to RMB 30.0 million[64] - Mainly due to lower cloud server costs and improved bargaining power[64] General and Administrative Expenses General and administrative expenses for the first half of 2025 were RMB 42.6 million, a significant 39.8% year-on-year decrease, primarily due to reduced share-based payment expenses and improved office efficiency through AI tools - General and administrative expenses significantly decreased by 39.8% year-on-year to RMB 42.6 million[65] - Mainly due to reduced share-based payment expenses and improved overall office efficiency through the use of AI tools[65] Other Income Other income for the first half of 2025 was RMB 7.3 million, a 6.6% year-on-year increase, primarily due to increased government grants from Beijing and Chengdu local governments supporting foreign-invested enterprises - Other income increased by 6.6% year-on-year to RMB 7.3 million[66] - Mainly due to increased grants received from Beijing and Chengdu local governments to support foreign-invested enterprises during the period[66] Other Gains and Losses Net other gains and losses for the first half of 2025 resulted in a loss of RMB 8.7 million, a 36.1% increase in loss compared to the same period last year, primarily due to increased write-off losses on leased computer equipment - Net loss was RMB 8.7 million, a 36.1% increase in loss compared to the same period last year[67] - Mainly due to increased write-off losses on leased computer equipment[67] Impairment Losses Under Expected Credit Loss Model, Net of Reversals Net impairment losses under the expected credit loss model for the first half of 2025 were RMB 15.5 million, a 13.1% year-on-year increase, primarily due to increased trade receivables driven by revenue growth - Net impairment losses were RMB 15.5 million, an increase of RMB 1.8 million compared to the same period last year[68] - Mainly due to the increase in trade receivables resulting from the company's revenue growth[68] Finance Costs Finance costs for the first half of 2025 were RMB 63.1 million, a 9.0% year-on-year increase, primarily due to expanded financing scale driven by market expansion and higher equipment procurement, despite a continuous decrease in financing interest rates - Finance costs increased by 9.0% year-on-year to RMB 63.1 million[69] - Mainly due to the company's expanded market scale and increased equipment procurement, leading to an increase in the Group's financing scale, while financing interest rates continued to decline[69] Income Tax Expense Income tax expense for the first half of 2025 was RMB 8.3 million, a significant increase from RMB 4.8 million in the same period last year, primarily due to the recognition of deferred tax - Income tax expense was RMB 8.3 million, an increase compared to RMB 4.8 million in the same period last year[70] - The tax expense recorded during the reporting period was mainly due to the recognition of deferred tax[70] Profit and Total Comprehensive Income for the Period Profit and total comprehensive income for the first half of 2025 was RMB 45.7 million, a substantial 177.6% increase from RMB 16.5 million in the same period last year - Profit and total comprehensive income for the period was RMB 45.7 million, an increase of RMB 29.3 million compared to the same period last year[71] Adjusted Profit (Non-IFRS Measure) Adjusted net profit for the first half of 2025 was RMB 51.179 million, a 66.6% year-on-year increase, primarily adjusted by adding back share-based payment expenses Adjusted Net Profit Reconciliation (Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit and total comprehensive income for the period | 45,745 | 16,481 | | Add: Share-based payment expenses | 5,434 | 14,233 | | Adjusted net profit | 51,179 | 30,714 | EBITDA and Adjusted EBITDA (Non-IFRS Measure) EBITDA for the first half of 2025 was RMB 379.6 million, and adjusted EBITDA was RMB 385.0 million, representing year-on-year increases of 23.9% and 20.1%, respectively EBITDA and Adjusted EBITDA Reconciliation (Six Months Ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit and total comprehensive income for the period | 45,745 | 16,481 | | Add: Net finance costs | 61,392 | 54,340 | | Add: Income tax expense | 8,319 | 4,788 | | Add: Depreciation | 263,860 | 230,581 | | Add: Amortization | 239 | 205 | | EBITDA | 379,555 | 306,395 | | Add: Share-based payment expenses | 5,434 | 14,233 | | Adjusted EBITDA | 384,989 | 320,628 | Capital Management, Financing and Financial Policies Capital Management, Financing and Financial Policies The company is committed to maintaining its ability to continue as a going concern and providing returns to shareholders, supporting business expansion and working capital needs through prudent financing and financial policies; as of June 30, 2025, cash and cash equivalents decreased, borrowings increased, and the gearing ratio improved - The company's capital management objective is to maintain its ability to continue as a going concern, provide returns to shareholders, and adjust its capital structure through issuing new shares, bonds, bank borrowings, and other means[74] - Prudent financing and financial policies are adopted to maintain sufficient cash flow to support business expansion, capital expenditures, and general working capital needs[74] Cash Position As of June 30, 2025, cash and cash equivalents were RMB 400.6 million, a decrease from RMB 556.7 million as of December 31, 2024 - Cash and cash equivalents decreased from RMB 556.7 million as of December 31, 2024, to RMB 400.6 million as of June 30, 2025[75] - Cash and cash equivalents are primarily denominated in Renminbi, Hong Kong Dollars, and US Dollars[75] Borrowings As of June 30, 2025, the company's total borrowings were RMB 1,488.6 million, with approximately RMB 892.9 million due within one year; the average borrowing balance increased by 7.7% year-on-year, and borrowing interest rates ranged from 2.15% to 12%, a decrease from the previous year - As of June 30, 2025, total borrowings were RMB 1,488.6 million[76] - Approximately RMB 892.9 million is due within one year[76] - The average balance of current and non-current borrowings was RMB 1,552.7 million, an increase of 7.7% compared to the same period last year[76] - Borrowing interest rates ranged from 2.15% to 12%, a decrease from 3.15% to 12% in the same period last year[77] Gearing Ratio As of June 30, 2025, the company's gearing ratio was 160.9%, an improvement from 168.5% as of December 31, 2024 - The gearing ratio decreased from 168.5% as of December 31, 2024, to 160.9% as of June 30, 2025[78] Foreign Exchange and Exchange Rate Risk The company primarily operates in China, with most income and expenses denominated in Renminbi, but some bank balances, financial assets, and liabilities are denominated in foreign currencies, exposing it to foreign exchange risk; currently, there is no hedging policy, but management continuously monitors the situation - The company primarily operates in China, with most income and expenses denominated in Renminbi[79] - Some bank balances, financial assets, and liabilities are denominated in foreign currencies, exposing the company to foreign exchange risk[79] - Currently, there is no foreign currency hedging policy, but management will monitor and consider future hedging measures[79] Contingent Liabilities As of June 30, 2025, the company had no significant contingent liabilities - As of June 30, 2025, the company had no significant contingent liabilities[80] Pledge of Group Assets As of June 30, 2025, the company pledged leased computer equipment and right-of-use assets with a net book value of approximately RMB 1,562.6 million as collateral for bank borrowings and other financial institution financing - As of June 30, 2025, the company pledged leased computer equipment and right-of-use assets with a net book value of approximately RMB 1,562.6 million as collateral for bank borrowings and other financial institution financing[81] Capital Expenditures Capital expenditures for the first half of 2025 were RMB 386.4 million, a decrease from RMB 426.0 million in the same period last year, primarily used for the acquisition of leased computer equipment and right-of-use assets, funded mainly by cash flow from customer subscriptions and borrowings - Capital expenditures for the first half of 2025 were RMB 386.4 million, a decrease from RMB 426.0 million in the same period last year[82] - Capital expenditures were primarily used for the acquisition of leased computer equipment (RMB 177.7 million) and right-of-use assets (RMB 208.7 million)[82] - Funds were primarily provided by cash flow from customer subscriptions, bank, and other borrowings[82] Significant Investments Held Significant Investments Held After the reporting period, between June 6 and July 9, 2025, the company subscribed to low-risk cash management wealth management products totaling USD 26,534,700 to enhance capital utilization and increase income from idle funds; as of June 30, 2025, the fair value of these products was RMB 143.3 million, accounting for approximately 4.1% of total assets - The company subscribed to cash management wealth management products totaling USD 26,534,700 between June 6 and July 9, 2025[84] - These products have an expected annualized return of 2%-4.5%, an investment period of no more than one year, are redeemable at any time, and carry low risk[84] - As of June 30, 2025, the fair value of these wealth management products was RMB 143.3 million, accounting for approximately 4.1% of total assets[84] - As of June 30, 2025, the company had no significant investments accounting for 5% or more of total assets[85] Material Acquisitions and Disposals Material Acquisitions and Disposals For the first half of 2025 and up to the date of this announcement, the company had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - For the first half of 2025 and up to the date of this announcement, the company had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[86] Employees and Remuneration Employees and Remuneration As of June 30, 2025, the company had 1,238 full-time employees, a decrease from December 31, 2024; the company offers competitive compensation and benefits, diverse training, and implements share option schemes to attract and incentivize talent - As of June 30, 2025, the company had 1,238 full-time employees, a decrease from 1,430 as of December 31, 2024[88] - Employee remuneration (excluding directors) for the first half of 2025 was approximately RMB 136 million, a decrease from RMB 144 million in the same period last year[88] - The company offers competitive compensation, performance bonuses, and other incentives, and provides regular internal training for employees[88][89] - The company adopted a pre-IPO share option scheme and a 2023 share scheme, aiming to attract, incentivize, and retain talent[90][91] - On April 22, 2025, the Board conditionally granted share options and share awards to Dr. Ji Pengcheng and Mr. Zhang Bin, linked to business and financial milestones such as subscribed equipment quantity, monthly revenue, and gross profit[92] - On June 13, 2025, the company granted a total of 5,760,000 share options and 2,821,400 share awards to 146 eligible participants[94] Other Information Interim Dividend The Board of Directors decided not to pay any interim dividend for the first half of 2025 - The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025[95] Corporate Governance Code The company has complied with all applicable provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules, but the roles of Chairman and Chief Executive Officer are combined and held by Dr. Ji Pengcheng, which the Board believes provides strong and consistent leadership for the company, with adequate checks and balances in place - The company has complied with all applicable provisions of the Corporate Governance Code[96] - The roles of Chairman and Chief Executive Officer are combined and held by Dr. Ji Pengcheng, which deviates from code provision C.2.1[97] - The Board believes this arrangement provides strong and consistent leadership for the company, and adequate checks and balances are in place (e.g., independent non-executive directors, Board decisions requiring majority approval)[97][98] Compliance with the Model Code for Securities Transactions by Directors Following specific inquiries, all Directors confirmed that they have complied with the required standards set out in the Model Code for Securities Transactions by Directors in Appendix C3 of the Listing Rules for the six months ended June 30, 2025 - All Directors confirmed that they have complied with the required standards set out in the Model Code for the six months ended June 30, 2025[100] Audit Committee The Audit Committee comprises three independent non-executive directors, with Mr. Wang Jingbo as Chairman; the committee has reviewed the company's unaudited condensed consolidated interim financial statements and interim results announcement for the first half of 2025, and the independent auditor has reviewed the condensed consolidated financial statements in accordance with International Standard on Review Engagements 2410 - The Audit Committee comprises three independent non-executive directors, with Mr. Wang Jingbo as Chairman of the committee[101] - The committee has reviewed the company's unaudited condensed consolidated interim financial statements and interim results announcement for the first half of 2025[101] - The independent auditor, Deloitte Touche Tohmatsu, has reviewed the condensed consolidated financial statements in accordance with International Standard on Review Engagements 2410[101] Purchase, Sale or Redemption of the Company's Listed Securities In the first half of 2025, the company repurchased and cancelled a total of 46,013,500 ordinary shares on the Stock Exchange for a total consideration (before expenses) of HKD 26,371,999, aiming to enhance net asset value per share and/or earnings per share; as of the date of this announcement, the company held 13,637,000 treasury shares - In the first half of 2025, the company repurchased a total of 14,792,500 ordinary shares on the Stock Exchange for a total consideration (before expenses) of HKD 26,371,999[102] - The share repurchases aimed to enhance net asset value per share and/or earnings per share[102] - As of June 30, 2025, the company cancelled a total of 46,013,500 treasury shares[102] - As of the date of this announcement, the company held 13,637,000 treasury shares[102] Material Litigation For the first half of 2025 and up to the date of this announcement, the company was not involved in any material litigation or arbitration, and the Directors were not aware of any pending or threatened material litigation or claims - For the first half of 2025 and up to the date of this announcement, the company was not involved in any material litigation or arbitration[103] Use of Proceeds from Global Offering The net proceeds from the global offering were approximately HKD 97.0 million, of which HKD 83.9 million had been utilized as of June 30, 2025, primarily for market promotion, sales and service network improvements, R&D and diversification of service content, enhancing remanufacturing capabilities and operational efficiency, working capital, and general corporate purposes; the remaining proceeds are expected to be utilized by the end of 2025 - The net proceeds from the global offering were approximately HKD 97.0 million[105] - As of June 30, 2025, HKD 83.9 million had been utilized, with HKD 13.1 million remaining unutilized[105] Use of Proceeds and Utilization (As of June 30, 2025) | Intended Use | Percentage (%) | Available (HKD millions) | Utilized (HKD millions) | Unutilized (HKD millions) | Expected Timeline | | :--- | :--- | :--- | :--- | :--- | :--- | | Investment in market promotion and sales and service network improvements | 40.0 | 38.8 | 29.8 | 9.0 | By end of 2025 | | Investment in R&D and diversification of service content | 30.0 | 29.1 | 25.0 | 4.1 | By end of 2025 | | Enhancing remanufacturing capabilities and operational efficiency | 20.0 | 19.4 | 19.4 | 0.0 | - | | Working capital and general corporate purposes | 10.0 | 9.7 | 9.7 | 0.0 | - | | Total | 100.0 | 97.0 | 83.9 | 13.1 | | - Unutilized proceeds are intended to be placed in interest-bearing accounts and comply with China's foreign exchange registration and remittance laws[106] Publication of Interim Results Announcement and Interim Report This interim results announcement has been published on the HKEX website and the company's website, and the interim report for the six months ended June 30, 2025, will also be available on these websites - The interim results announcement has been published on the HKEX website (www.hkexnews.hk) and the company's website (http://edianyun.com)[107](index=107&type=chunk) - The interim report for the six months ended June 30, 2025, will be available on the aforementioned websites[107] By Order of the Board This announcement was issued by Dr. Ji Pengcheng, Chairman and Chief Executive Officer of the Board, in Beijing, China, on August 25, 2025, and lists the members of the Board of Directors - The announcement was issued by Dr. Ji Pengcheng, Chairman and Chief Executive Officer of the Board, on August 25, 2025[108] - Board members include executive directors Dr. Ji Pengcheng, Mr. Zhang Bin, Mr. He Liang, and Mr. Tong Jian, as well as independent non-executive directors Mr. Hong Weili, Mr. Song Shiji, Mr. Wang Jingbo, and Ms. Li Dan[108]