手回集团(02621) - 2025 - 中期业绩

Company Information and Financial Highlights Company Overview Shouhui Group Limited, incorporated in the Cayman Islands, listed on HKEX in May 2025, presents its unaudited interim results for H1 2025 - The company was incorporated in the Cayman Islands on August 3, 2023, and listed on the Main Board of the Hong Kong Stock Exchange on May 30, 2025[2][68][69] Financial Highlights H1 2025 revenue and gross profit declined, but profit surged due to financial instrument fair value changes, while adjusted net profit decreased Key Financial Data for H1 2025 | Metric | H1 2025 (RMB Million) | H1 2024 (RMB Million) | YoY Change | |---|---|---|---| | Adjusted Net Profit* | 65.7 | 129.0 | -49.0% | - The significant increase in profit for the period was primarily driven by gains from changes in the fair value of financial instruments issued to investors[4][41] Business Review Business Model and Strategy The company operates as a leading Chinese life insurance intermediary, focusing on digital transformation to build a comprehensive transaction and service platform - The company is positioned as a leading Chinese life insurance intermediary service provider, with digital transformation as its core strategy[5] - Core revenue is derived from premium distribution commissions, synergistically served by three major platforms: Xiaoyusan (2C), Kacha Bao (2A), and Niubao 100 (2B)[5] - The distributed product matrix covers diverse categories including long-term life insurance, long-term critical illness insurance, long-term medical insurance, and short-term insurance[5] Operating Performance Despite macroeconomic uncertainties and commission rate adjustments, the company achieved RMB 4.9 billion in total premiums for H1 2025, a 25.7% increase, though first-year premiums and revenue declined - In H1 2025, the company's total premiums were approximately RMB 4.9 billion, representing a 25.7% year-on-year increase[6] - Affected by macroeconomic conditions, slowing financial consumption, and the "reporting and execution alignment" policy, H1 2025 first-year premiums decreased by 0.6%, revenue by 21.2%, and adjusted net profit by 49.0% year-on-year[8] - First-year premiums and revenue in Q1 and Q2 2025 both maintained double-digit quarter-on-quarter growth, indicating a positive business growth trend after the adjustment of pre-set interest rates[6] Product Structure and Asset Status Long-term critical illness first-year premiums grew by 30.7%, and participating products surged by 147.7%; total assets increased by 18.5% to RMB 2.2 billion, with net assets turning positive to RMB 1.2 billion due to IPO reclassification H1 2025 Product Structure Performance | Product Category | First-Year Premiums (RMB Billion) | YoY Growth | Growth Category | |---|---|---|---| | Participating Products | 2.41 | +147.7% | >+100% | - As of June 30, 2025, the company's total assets amounted to approximately RMB 2.2 billion, an 18.5% increase from the end of 2024[7] - As of June 30, 2025, the company's net assets totaled approximately RMB 1.2 billion, a significant improvement from net liabilities of RMB 0.7 billion at the end of 2024, primarily due to the reclassification of financial instruments issued to investors from liabilities to equity after the IPO[7] Business Updates Market-Oriented Product Customization and IP Management The company continues to develop customer-centric customized insurance products, collaborating with over 100 insurers to distribute more than 2,200 products, with customized products accounting for over 51% of first-year premiums - As of June 30, 2025, the company has established deep cooperation with over 100 insurance companies, cumulatively distributing over 2,200 insurance products[9] - During the reporting period, customized product first-year premiums totaled approximately RMB 799.4 million, accounting for over 51% of the company's total first-year premiums[9] - Over 14 IPs have been incubated, covering various insurance products, with continuous iteration and optimization of Super Mary adult critical illness and Bumblebee child critical illness series driving a 30.7% year-on-year increase in long-term critical illness first-year premiums[10] Digitally-Driven Omnichannel Strategic Layout The company deepens its "2C+2A+2B" omnichannel strategy through Xiaoyusan, Kacha Bao, and Niubao 100 platforms, serving over 3.8 million policyholders and expanding its agent network - The company deepens its "2C+2A+2B" omnichannel strategic layout through its three major platforms: Xiaoyusan (2C), Kacha Bao (2A), and Niubao 100 (2B)[11] - As of June 30, 2025, the company has cumulatively served over 3.8 million policyholders, aggregated over 1,300 business partners, signed over 29,000 agents, and its service footprint covers 15 provincial administrative regions nationwide[11] - The company is building a comprehensive self-media matrix across platforms like Douyin, Xiaohongshu, Bilibili, Baidu, WeChat ecosystem, and Weibo, establishing a full-link marketing system[12] R&D Capabilities Closely Integrated with Industry Practices The company continuously invests in online transaction capabilities and AI technology, launching a unified product configuration platform and self-developed AI systems that significantly improve efficiency and drive a 46.7% increase in insurance technology service revenue - In H1 2025, the unified product configuration platform was fully launched, supporting efficient listing of over 200 products and shortening the average delivery cycle by over 50%[13] - Self-developed AI multi-modal quality inspection system and AI Eagle Eye verification system improved efficiency by 56% and 63% respectively, ensuring compliance and efficiency[13] - Nearly 30 AI services have been launched, including AI policy management, private domain customer AI management, and AI outbound calling robots, empowering various business scenarios[13] - Insurance technology service revenue was approximately RMB 5.1 million, a 46.7% year-on-year increase, with the AI intelligent risk control system contributing over half of this revenue[14] Efficient and Convenient Insurance Customer Service The company provides 24/7 consultation and claims reporting services, processing over 15,000 flash claims totaling over RMB 11 million in H1 2025 with an average processing time of 0.27 days and 99% customer satisfaction - The company provides 24/7 consultation and claims reporting services, covering comprehensive policy management[15] - In H1 2025, over 15,000 flash claims were processed, totaling over RMB 11 million, with an average claims processing time as low as 0.27 days and customer satisfaction reaching 99%[15] - As of June 30, 2025, the company has over 3.8 million policyholders, with those aged 30-45 contributing 62.1% of total premiums[16] Business Outlook and Future Plans Market Outlook and Strategic Direction The company anticipates further declines in China's life insurance pre-set interest rates in H2 2025 and plans to strengthen its business foundation to consolidate market position and increase market share - China's life insurance industry is expected to see further declines in pre-set interest rates in H2 2025, presenting both opportunities and challenges[17] - The company will further strengthen its business foundation, actively consolidate its market position, and increase market share[17] Product and Brand Development The company plans to continuously iterate existing IP products, enrich its distribution portfolio, and actively develop customized participating insurance series to increase their sales proportion, while also expanding enterprise insurance products - The company will continuously iterate existing IP products, such as Super Mary adult critical illness and Bumblebee child critical illness, and actively develop customized participating insurance series[17] - It plans to expand its enterprise insurance product series (e.g., aviation, legal, travel, employee benefits) to build a comprehensive insurance product ecosystem covering both individual and enterprise clients[17] Channel and Partnership Expansion The company will deepen its online-offline integrated marketing strategy, strengthen product IP and brand promotion, and expand its offline branch network while recruiting and empowering professional agents - The company will deepen its online-offline integrated marketing strategy, strengthen product IP creation and brand promotion, and enhance user coverage and conversion[18] - It plans to deepen the layout of its offline branch network, continuously recruit and cultivate a professional agent team, and empower agents through technological innovation[19] - The company will strengthen existing business partnerships, deepen cooperation with media advertising companies, and explore property and casualty insurance business scenarios to achieve diversified development[19] R&D and Technological Innovation The company will continue to deepen the application of technology across the entire insurance value chain, upgrading core transaction systems and intelligent marketing tools, while focusing on AI applications like underwriting and advisory to achieve full-process intelligent upgrades - The company will continue to deepen the application of technology across the entire insurance business chain, iterating and upgrading its online core transaction system, intelligent marketing tools, and quality management system[20] - It will focus on key areas such as AI underwriting, AI insurance advisors, and AI insurance document precise analysis to achieve full-process intelligent upgrades and enhance AI technology penetration[20] Overseas Business Exploration The company will actively explore overseas insurance business expansion to inject new momentum for long-term sustainable development - The company will actively explore overseas insurance business expansion to inject new momentum for its long-term sustainable development[21] Financial Analysis Revenue Analysis In H1 2025, total group revenue decreased by 21.2% to RMB 554.5 million, primarily due to macroeconomic uncertainties, slowing financial consumption, and reduced commission rates, with insurance transaction services declining and technology services growing Revenue Overview Group revenue decreased by 21.2% to RMB 554.5 million in H1 2025 from RMB 703.6 million in H1 2024, mainly due to reduced insurance transaction service revenue - Revenue decreased by 21.2% year-on-year to RMB 554.5 million, primarily due to a combination of macroeconomic uncertainties, slowing financial consumption demand, and reduced commission rates under the "reporting and execution alignment" policy[22] Revenue by Business Segment Insurance transaction service revenue decreased by 21.5% to RMB 549.5 million, accounting for 99.1% of total revenue, while insurance technology service revenue increased by 46.7% to RMB 5.1 million Revenue by Business Segment (RMB Thousand) | Business Segment | H1 2025 | % of Total | H1 2024 | % of Total | |---|---|---|---|---| | Total | 554,548 | 100.0% | 703,560 | 100.0% | - The decrease in insurance transaction service revenue was mainly due to reduced demand for long-term life insurance products, lower commission rates, and lower-than-expected sales of customized product Jinyibao[25] - The increase in insurance technology service revenue was primarily due to growth in risk assessment assistance and other technology services[25] Revenue by Insurance Product Long-term life insurance revenue significantly decreased year-on-year, while critical illness insurance revenue increased by 24.0%, partially offsetting declines in life and medical insurance Revenue by Insurance Product (RMB Thousand) | Insurance Product | H1 2025 | % of Total | H1 2024 | % of Total | |---|---|---|---|---| | Total | 549,488 | 100.0% | 700,111 | 100.0% | - Long-term life insurance revenue decreased year-on-year, while critical illness insurance revenue increased year-on-year, partially offsetting the decline in life and medical insurance[25] Cost and Gross Profit Analysis In H1 2025, operating costs decreased by 16.4% to RMB 357.9 million due to lower revenue, leading to a 28.6% decline in overall gross profit to RMB 196.6 million and a drop in gross margin to 35.5% Operating Costs Operating costs, primarily comprising commissions to agents, channel promotion fees, and staff salaries, decreased by 16.4% to RMB 357.9 million in H1 2025, mainly due to reduced revenue - Operating costs decreased by 16.4% year-on-year to RMB 357.9 million, primarily due to a year-on-year reduction in commission expenses and channel promotion fees resulting from lower revenue[28] Gross Profit and Gross Margin Overall gross profit decreased by 28.6% to RMB 196.6 million, with gross margin falling from 39.2% to 35.5%, mainly due to a decline in insurance transaction service gross margin, while insurance technology service gross margin increased Gross Profit and Gross Margin by Business Segment (RMB Thousand) | Business Segment | H1 2025 Gross Profit | H1 2025 Gross Margin | H1 2024 Gross Profit | H1 2024 Gross Margin | |---|---|---|---|---| | Total | 196,605 | 35.5% | 275,485 | 39.2% | - The gross margin for insurance transaction services decreased, primarily due to a reduced contribution from high-margin long-term medical and other insurance products, and increased commission expenses and promotion fees to gain market share in long-term critical illness insurance[31] - The gross margin for insurance technology services increased, mainly due to enhanced cost control measures for risk control and assessment technology services[31] Expenses and Other Gains/Losses Other net income decreased by 46.7% to RMB 2.7 million, sales and marketing expenses decreased by 9.4%, while general and administrative expenses increased by 13.4% due to listing expenses and depreciation; R&D expenses decreased by 16.9%, and profit for the period surged 977.3% to RMB 664.6 million, driven by fair value changes of financial instruments Other Net Income Other net income decreased by 46.7% to RMB 2.7 million, primarily due to reduced realized gains from financial assets measured at fair value and diluted gains from associates Other Net Income Details (RMB Thousand) | Item | H1 2025 | % of Total | H1 2024 | % of Total | |---|---|---|---|---| | Total | 2,668 | 100.0% | 5,010 | 100.0% | - The decrease in other net income was mainly due to reduced diluted gains from associates and lower realized gains and losses from financial assets measured at fair value[35] Sales and Marketing Expenses Sales and marketing expenses decreased by 9.4% to RMB 61.1 million, primarily due to enhanced cost control and optimized marketing processes, leading to reduced advertising and marketing expenses and controlled personnel costs - Sales and marketing expenses decreased by 9.4% to RMB 61.1 million, primarily due to reduced advertising and marketing expenses and lower salaries and other benefits[36] General and Administrative Expenses General and administrative expenses increased by 13.4% to RMB 53.3 million, mainly due to increased listing expenses and higher depreciation of right-of-use assets from new leased office premises - General and administrative expenses increased by 13.4% to RMB 53.3 million, primarily due to increased listing expenses and higher depreciation expenses for right-of-use assets from newly leased office premises[37] Research and Development Expenses Research and development expenses decreased by 16.9% to RMB 22.9 million, primarily due to improved internal organizational efficiency, controlled personnel costs, and a reduction in the average number of R&D personnel - Research and development expenses decreased by 16.9% to RMB 22.9 million, primarily due to reduced salaries and other benefits[38] Impairment Loss Provision Impairment loss provision decreased by 22.4% to RMB 0.3 million, mainly due to a year-on-year reduction in the increase of trade receivables and contract assets - Impairment loss provision decreased by 22.4% to RMB 0.3 million, primarily due to a year-on-year reduction in the increase of trade receivables and contract assets[39] Finance Costs Finance costs, primarily interest expenses on lease liabilities, remained relatively stable at RMB 0.2 million for the six months ended June 30, 2025 - Finance costs remained relatively stable at RMB 0.2 million[40] Changes in Fair Value of Financial Instruments Issued to Investors For the six months ended June 30, 2025, the company recorded a gain of RMB 619.0 million from changes in the fair value of financial instruments issued to investors, compared to a loss of RMB 190.2 million in the prior period, mainly due to changes in the company's valuation - A gain of RMB 619.0 million was recognized from changes in the fair value of financial instruments issued to investors (H1 2024: loss of RMB 190.2 million), primarily due to changes in the company's valuation[41] Share of Loss of Associates Share of loss of associates increased from RMB 1.0 million in H1 2024 to RMB 2.5 million in H1 2025 - Share of loss of associates increased from RMB 1.0 million to RMB 2.5 million[42] Income Tax Income tax decreased by 40.6% to RMB 13.4 million, primarily due to a reduction in taxable income compared to the prior period - Income tax decreased by 40.6% to RMB 13.4 million, primarily due to reduced taxable income[43] Profit Overview In H1 2025, the Group's profit for the period was RMB 664.6 million, a significant increase of 977.3% from a loss of RMB 75.8 million in the prior year, while adjusted net profit (non-HKFRS) decreased by 49.0% to RMB 65.7 million Profit/(Loss) for the Period The Group recorded a profit of RMB 664.6 million in H1 2025, a 977.3% increase from a loss of RMB 75.8 million in H1 2024 - Profit for the period was RMB 664.6 million, a 977.3% year-on-year increase (H1 2024: loss of RMB 75.8 million)[44] Adjusted Net Profit Adjusted net profit (non-HKFRS measure) was RMB 65.7 million, a 49.0% year-on-year decrease, excluding the impact of fair value changes of financial instruments issued to investors, share-based payment expenses, and listing expenses Reconciliation of Profit/(Loss) for the Period to Adjusted Net Profit (RMB Thousand) | Item | H1 2025 | H1 2024 | |---|---|---| | Adjusted Profit for the Period | 65,738 | 129,003 | - Adjusted net profit (non-HKFRS measure) decreased by 49.0% year-on-year to RMB 65.7 million[46] Balance Sheet Items Analysis As of June 30, 2025, intangible assets remained stable, equity in associates decreased, while prepayments, other receivables, other assets, trade receivables, contract assets, trade payables, other payables, accrued expenses, and lease liabilities all increased Intangible Assets As of June 30, 2025, the carrying value of intangible assets remained stable at RMB 40.6 million, primarily comprising software, copyrights, trademarks, and licenses - The carrying value of intangible assets remained stable at RMB 40.6 million[47] Equity in Associates Equity in associates decreased from RMB 5.1 million at the end of 2024 to RMB 2.6 million as of June 30, 2025 - Equity in associates decreased from RMB 5.1 million to RMB 2.6 million[48] Prepayments, Other Receivables and Other Assets Prepayments, other receivables, and other assets increased significantly from RMB 29.5 million at the end of 2024 to RMB 118.1 million as of June 30, 2025, mainly due to subscriptions to time deposits exceeding three months - Prepayments, other receivables, and other assets increased from RMB 29.5 million to RMB 118.1 million, primarily due to subscriptions to time deposits with maturities exceeding three months[49] Trade Receivables Trade receivables increased from RMB 96.1 million at the end of 2024 to RMB 134.9 million as of June 30, 2025, mainly due to increased unsettled amounts from business growth in Q2 2025 - Trade receivables increased from RMB 96.1 million to RMB 134.9 million, primarily due to business growth in Q2 2025[50] Contract Assets Contract assets increased from RMB 849.6 million at the end of 2024 to RMB 913.0 million as of June 30, 2025 - Contract assets increased from RMB 849.6 million to RMB 913.0 million[51] Trade Payables Trade payables increased from RMB 463.6 million at the end of 2024 to RMB 512.0 million as of June 30, 2025, primarily due to increased operating costs related to renewal income - Trade payables increased from RMB 463.6 million to RMB 512.0 million, primarily due to increased operating costs related to renewal income[52] Other Payables, Accrued Expenses and Other Liabilities Other payables, accrued expenses, and other liabilities increased from RMB 126.8 million at the end of 2024 to RMB 162.9 million as of June 30, 2025, mainly due to increased premium collection business - Other payables, accrued expenses, and other liabilities increased from RMB 126.8 million to RMB 162.9 million, primarily due to increased premium collection business[53] Lease Liabilities Lease liabilities increased from RMB 5.7 million at the end of 2024 to RMB 18.2 million as of June 30, 2025, mainly due to multiple office lease agreements entered into during the period - Lease liabilities increased from RMB 5.7 million to RMB 18.2 million, primarily due to multiple office lease agreements entered into during the period[54] Contingent Liabilities As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[55] Liquidity and Capital Resources The Group primarily funds its operations through net cash generated from operations and net proceeds from the global offering, with bank balances and cash at RMB 249.1 million as of June 30, 2025, and no asset pledges or significant foreign currency risks - The Group primarily funds its operations through net cash generated from operations and net proceeds from the global offering[56] - As of June 30, 2025, bank balances and cash amounted to RMB 249.1 million[56] - Capital expenditure was RMB 17.7 million, primarily for right-of-use assets related to leased offices[57] - As of June 30, 2025, the Group had no pledged assets, the gearing ratio was not applicable, and it was not exposed to significant foreign currency risk[59][60][61] Financial Statements Consolidated Statement of Profit or Loss and Other Comprehensive Income This section presents the unaudited consolidated statement of profit or loss and other comprehensive income for the six months ended June 30, 2025, detailing financial performance including revenue, costs, expenses, profit/loss, and earnings/loss per share Summary of Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | H1 2025 | H1 2024 | |---|---|---| | Diluted Earnings/(Loss) Per Share | RMB 0.22 | RMB (0.94) | Consolidated Statement of Financial Position This section presents the unaudited consolidated statement of financial position as of June 30, 2025, detailing asset and liability structure including non-current assets, current assets, current liabilities, non-current liabilities, and capital and reserves Summary of Consolidated Statement of Financial Position (RMB Thousand) | Item | As of June 30, 2025 | As of December 31, 2024 | |---|---|---| | Total Equity/(Deficiency) | 1,182,294 | (739,803) | Notes to the Financial Report Basis of Preparation and General Information This interim financial report is prepared in accordance with HKAS 34 "Interim Financial Reporting" and has been reviewed by KPMG - This interim financial report is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and has been reviewed by KPMG[69][70] Changes in Accounting Policies The Group has applied HKAS 21 (Amendment) "The Effects of Changes in Foreign Exchange Rates—Lack of Exchangeability," which has no material impact on the interim financial report, and no other new standards or interpretations not yet effective have been adopted - Hong Kong Accounting Standard 21 (Amendment) has been applied, but it has no material impact on the interim financial report[71] - No new standards or interpretations not yet effective have been adopted in the current accounting period[72] Revenue and Segment Reporting The Group's revenue primarily derives from two segments: insurance transaction services and insurance technology services, with the former accounting for the majority but declining, and the latter showing growth; all revenue and operating profit originate from China Revenue Breakdown (RMB Thousand) | Item | H1 2025 | H1 2024 | |---|---|---| | Total | 554,548 | 703,560 | - The Group reports by two business lines: insurance transaction services and insurance technology services, with all revenue and operating profit originating from China[74][75][78] Profit/(Loss) Before Tax This section details finance costs, staff costs, and other items affecting profit/loss before tax, noting stable finance costs, reduced staff costs, and increased depreciation, amortization, professional service fees, and listing expenses Finance Costs (RMB Thousand) | Item | H1 2025 | H1 2024 | |---|---|---| | Interest expense on lease liabilities | 222 | 154 | Staff Costs (RMB Thousand) | Item | H1 2025 | H1 2024 | |---|---|---| | Total | 70,878 | 78,382 | Other Items (RMB Thousand) | Item | H1 2025 | H1 2024 | |---|---|---| | Listing expenses | 14,247 | 9,656 | Income Tax in the Consolidated Statement of Profit or Loss and Other Comprehensive Income The Group is exempt from income tax in the Cayman Islands and Hong Kong, while its PRC subsidiaries are subject to a 25% tax rate, with Shenzhen Shouhui Technology Group Co., Ltd. enjoying a preferential 15% rate as a high-tech enterprise; income tax expense decreased by 40.6% to RMB 13.4 million - Shenzhen Shouhui Technology Group Co., Ltd., as a high-tech enterprise, enjoys a preferential income tax rate of 15%[82] Income Tax in the Consolidated Statement of Profit or Loss and Other Comprehensive Income (RMB Thousand) | Item | H1 2025 | H1 2024 | |---|---|---| | Total | 13,393 | 22,550 | Earnings/(Loss) Per Share In H1 2025, basic earnings per share were RMB 5.93 and diluted earnings per share were RMB 0.22, a significant improvement from basic and diluted losses per share of RMB (0.94) in the prior period, driven by a substantial increase in profit for the period Earnings/(Loss) Per Share | Metric | H1 2025 | H1 2024 | |---|---|---| | Diluted Earnings/(Loss) Per Share | RMB 0.22 | RMB (0.94) | - Basic earnings per share are calculated based on profit attributable to ordinary equity shareholders of the Company of RMB 664.26 million and a weighted average of 111.94 million shares[84] - Diluted earnings per share are calculated based on profit attributable to ordinary equity shareholders of the Company of RMB 45.245 million and a weighted average of 204.82 million shares[85] Trade Receivables and Contract Assets As of June 30, 2025, net trade receivables were RMB 134.9 million and net contract assets were RMB 913.0 million, both increasing from the end of 2024, reflecting business growth Trade Receivables and Contract Assets (RMB Thousand) | Item | As of June 30, 2025 | As of December 31, 2024 | |---|---|---| | Net contract assets | 912,990 | 849,584 | Ageing Analysis of Trade Receivables (RMB Thousand) | Ageing | As of June 30, 2025 | As of December 31, 2024 | |---|---|---| | No invoice | 105,716 | 92,351 | Cash and Cash Equivalents and Restricted Cash As of June 30, 2025, cash and cash equivalents significantly increased to RMB 249.1 million from RMB 113.4 million at the end of 2024, with restricted cash totaling RMB 92.3 million, primarily for regulatory reserves and premiums collected on behalf of insurers Cash and Cash Equivalents (RMB Thousand) | Item | As of June 30, 2025 | As of December 31, 2024 | |---|---|---| | Total | 249,143 | 113,368 | Restricted Cash (RMB Thousand) | Item | As of June 30, 2025 | As of December 31, 2024 | |---|---|---| | Total | 92,294 | 49,806 | - Restricted cash primarily includes reserves required by regulations and premiums collected on behalf of insurance companies[91] Trade Payables As of June 30, 2025, total trade payables were RMB 512.0 million, an increase from RMB 463.6 million at the end of 2024, mainly comprising amounts due to suppliers Trade Payables (RMB Thousand) | Item | As of June 30, 2025 | As of December 31, 2024 | |---|---|---| | Total | 511,957 | 463,616 | Financial Instruments Issued to Investors As of June 30, 2025, the carrying value of financial instruments issued to investors was zero, as all preference shares were converted to ordinary shares upon IPO completion, and the carrying value of financial liabilities was reclassified to equity Changes in Financial Instruments Issued to Investors (RMB Thousand) | Item | As of June 30, 2025 | As of December 31, 2024 | |---|---|---| | At period/year-end | — | 1,702,171 | - Upon completion of the initial public offering, all preference shares were converted to ordinary shares, and the carrying value of financial liabilities was reclassified to equity[93] Capital and Reserves As of June 30, 2025, share capital was RMB 0.016 million and share premium was RMB 183.528 million, with changes primarily driven by the IPO, preference share conversion, and capitalization issue; no dividends were paid during the period Share Capital and Share Premium (RMB Thousand) | Item | Number of Shares | Share Capital | Share Premium | |---|---|---|---| | As of June 30, 2025 | 226,379 | 16 | 183,528 | - Preference shares were reclassified to equity upon completion of the initial public offering on May 30, 2025, resulting in a capital reserve of approximately RMB 1,083.156 million[95] - No dividends were paid by the Company for the six months ended June 30, 2025[99] Other Information Material Investments, Acquisitions and Disposals During the reporting period, the Group held no material investments and made no significant acquisitions or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group held no material investments and made no significant acquisitions or disposals of subsidiaries, associates, or joint ventures[101] Future Plans for Material Investments or Capital Assets The Group intends to utilize the net proceeds from the global offering as planned in the prospectus, with no other material investment or capital asset plans disclosed - The Group intends to utilize the net proceeds from the global offering as planned in the prospectus[102] Employees and Remuneration Policy As of June 30, 2025, the Group had 704 full-time employees, all located in China, offering competitive remuneration, continuous training, and an IPO pre-share award scheme to incentivize staff - As of June 30, 2025, the Group had 704 full-time employees, all located in China[103] - The company provides competitive remuneration, continuous education and training programs, and has adopted a pre-IPO share award scheme[103] Use of Listing Proceeds The company listed on May 30, 2025, with net proceeds from the global offering of approximately HKD 134.2 million; as of June 30, 2025, HKD 0.9 million was utilized for expanding sales teams, marketing, and server purchases, with the remaining HKD 133.3 million to be used as planned - Net proceeds from the global offering were approximately HKD 134.2 million[104] Use of Listing Proceeds (HKD Million) | Item | Planned Amount | % of Total | Amount Used | Remaining Amount | |---|---|---|---|---| | Total | 134.2 | 100.0% | 0.9 | 133.3 | Interim Dividend The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[105] Corporate Governance and Compliance The Group maintains high corporate governance standards, complying with all applicable principles and code provisions of the Corporate Governance Code, except for the combined roles of Chairman and CEO, which the Board believes benefits management and is continuously reviewed; directors and employees have complied with the Model Code for Securities Transactions, and the Audit Committee has reviewed the interim results Compliance with Corporate Governance Practices The Company has complied with all applicable principles and code provisions of the Corporate Governance Code, except for the combined roles of Chairman and Chief Executive Officer, which the Board believes benefits management and is continuously reviewed - The company has complied with all applicable principles and code provisions of the Corporate Governance Code, except for the combined roles of Chairman and Chief Executive Officer[106] - The Board believes that combining the roles of Chairman and Chief Executive Officer benefits the Group's management and will continue to review its effectiveness[106] Compliance with Model Code for Securities Transactions All Directors have confirmed compliance with the Model Code for Securities Transactions from the listing date up to June 30, 2025 - All Directors have confirmed compliance with the Model Code for Securities Transactions from the listing date up to June 30, 2025[108] Audit Committee The Audit Committee, comprising three independent non-executive Directors, has reviewed the Group's unaudited condensed consolidated interim results for the reporting period and found them to be in compliance with applicable accounting standards and Listing Rules - The Audit Committee, composed of three independent non-executive Directors, has reviewed the Group's interim results and found them to be in compliance with applicable accounting standards and Listing Rules[109] Purchase, Sale or Redemption of the Company's Securities From the listing date up to June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - From the listing date up to June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[110] Events After the Reporting Period No significant post-reporting period events have occurred that would materially affect the Group - No significant post-reporting period events have occurred that would materially affect the Group[111] Publication of Interim Results Announcement and Interim Report This interim results announcement has been published on the HKEX and Company websites, and the interim report will be dispatched to shareholders who elected to receive printed copies and published on the aforementioned websites in due course - This interim results announcement has been published on the HKEX website and the Company's website, and the interim report will be dispatched to shareholders and published on the aforementioned websites in due course[112] Definitions Definitions This section provides definitions for key terms and abbreviations used in the report to ensure accurate understanding of its content - This section provides definitions for key terms and abbreviations used in the report[113][114][115][116]