车市科技(01490) - 2025 - 中期业绩

Financial Highlights The company reported a slight revenue decrease and gross profit increase, but experienced a significant shift from profit to loss for the period and adjusted net loss Financial Highlights for the Six Months Ended June 30, 2025 (RMB '000) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 66,360 | 66,974 | -0.9 | | Gross Profit | 43,709 | 42,316 | 3.3 | | Loss/(Profit) for the Period | (1,769) | 4,328 | -140.9 | | Adjusted Net Loss/(Profit) | (1,769) | 4,328 | -140.9 | - Adjusted net profit is defined as profit for the period plus share-based compensation expenses (post-IPO restricted share unit scheme expenses); for the six months ended June 30, 2025, these compensation expenses were zero[2] Interim Condensed Consolidated Financial Statements Interim Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, the company's revenue slightly decreased, but gross profit increased; however, a shift from profit to loss occurred due to reduced other income, increased impairment losses, and positive income tax expense Key Profit or Loss Statement Data (RMB '000) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | 66,360 | 66,974 | | Cost of Sales | (22,651) | (24,658) | | Gross Profit | 43,709 | 42,316 | | Other Income and Gains | 3,739 | 8,199 | | Selling and Distribution Expenses | (29,527) | (29,410) | | Administrative Expenses | (9,747) | (11,217) | | Research and Development Expenses | (6,774) | (6,042) | | Impairment Loss on Financial and Contract Assets | (1,156) | (8) | | Finance Costs | (107) | (128) | | Profit Before Tax | 84 | 3,708 | | Income Tax Expense/(Credit) | (1,853) | 620 | | Loss/(Profit) for the Period | (1,769) | 4,328 | | Loss/(Profit) Attributable to Owners of the Parent | (1,783) | 4,525 | | Basic Loss/Earnings Per Share | RMB (0.002) | RMB 0.004 | Interim Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the company's total comprehensive income for the period aligned with the loss for the period at RMB (1,769) thousand, a significant decrease from the RMB 4,328 thousand comprehensive income in the prior year Key Comprehensive Income Statement Data (RMB '000) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss/(Profit) for the Period | (1,769) | 4,328 | | Total Comprehensive Income for the Period | (1,769) | 4,328 | | Attributable to Owners of the Parent | (1,783) | 4,525 | | Attributable to Non-Controlling Interests | 14 | (197) | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, the company's total non-current assets decreased while total current assets slightly increased, driven by significant growth in financial assets at fair value through profit or loss and cash and cash equivalents, leading to improved liquidity through reduced current liabilities and enhanced net current assets Key Financial Position Statement Data (RMB '000) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Non-Current Assets | 53,575 | 66,700 | | Total Current Assets | 559,882 | 556,052 | | Total Current Liabilities | 77,565 | 84,166 | | Net Current Assets | 482,317 | 471,886 | | Total Assets Less Current Liabilities | 535,892 | 538,586 | | Total Non-Current Liabilities | 3,790 | 4,715 | | Net Assets | 532,102 | 533,871 | | Total Equity | 532,102 | 533,871 | - Among current assets, financial assets at fair value through profit or loss significantly increased from RMB 10,240 thousand as of December 31, 2024, to RMB 76,538 thousand as of June 30, 2025[6] - Cash and cash equivalents increased from RMB 209,104 thousand as of December 31, 2024, to RMB 280,757 thousand as of June 30, 2025[6] Notes to the Interim Condensed Consolidated Financial Information Basis of Presentation The interim condensed consolidated financial information is prepared in accordance with HKAS 34 and should be read in conjunction with the annual financial statements for the year ended December 31, 2024, as it does not include all disclosures required for annual financial statements - The financial information is prepared in accordance with HKAS 34 "Interim Financial Reporting"[8] Changes in Accounting Policies and Disclosures The accounting policies used to prepare the interim financial information are consistent with the 2024 annual consolidated financial statements, with the only new adoption being the revised HKAS 21, which had no material impact due to the group's transactional currency convertibility - The revised HKAS 21 "Lack of Exchangeability" was adopted for the first time, but it had no impact on the interim condensed consolidated financial information as the Group's transactional currencies are convertible[9][10] Operating Segment Information The chief operating decision maker reviews the financial results of the group as a whole, without separate operating segment financial information, and no geographical segment information is presented as all revenue and non-current assets are located in Mainland China; during the reporting period, Customer A and Customer B became major clients, while Customer C no longer accounted for over 10% of revenue - The chief operating decision maker reviews the Group's financial performance as a whole, and no separate operating segment information is presented[11] - All revenue and non-current assets are located in Mainland China, thus no geographical segment information is presented[12] Customers Accounting for Over 10% of Revenue (RMB '000) | Customer | 2025 | 2024 | | :--- | :--- | :--- | | Customer A | 11,771 | Not Applicable | | Customer B | 7,841 | Not Applicable | | Customer C | Not Applicable | 11,029 | Revenue For the six months ended June 30, 2025, the Group's total revenue was RMB 66,360 thousand, with online advertising services accounting for the vast majority and recognized over time, while integrated marketing services revenue significantly decreased Disaggregated Revenue Information (RMB '000) | Revenue Stream | 2025 | 2024 | | :--- | :--- | :--- | | Online Advertising Services | 64,494 | 55,945 | | Integrated Marketing Services | 1,866 | 11,029 | | Total | 66,360 | 66,974 | - Revenue from online advertising services is primarily recognized over time, while integrated marketing services revenue is recognized at a point in time when services are transferred[15] - Online advertising services revenue is recognized when advertisements are published over a specified display period, with payments typically due within 30 to 180 days after the billing date[17] - Performance obligations for integrated marketing services are satisfied upon completion of marketing activities and client confirmation, with payments typically due within 90 days after the billing date[18] Profit Before Tax For the six months ended June 30, 2025, the Group's profit before tax significantly decreased to RMB 84 thousand, primarily due to reduced employee benefit expenses, increased R&D expenses, impairment of other receivables, and lower bank interest income Components of Profit Before Tax (RMB '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Cost of Services Provided | 22,651 | 24,658 | | Employee Benefit Expenses | 22,248 | 26,836 | | Depreciation of Property, Plant and Equipment | 1,093 | 944 | | Amortization of Intangible Assets | 481 | 829 | | Research and Development Expenses | 6,774 | 6,042 | | Net Exchange Difference | 1,356 | (1,343) | | Reversal of Impairment Loss on Trade Receivables | (1,332) | (40) | | Impairment of Other Receivables | 2,499 | – | | Bank Interest Income | (5,142) | (5,938) | Income Tax The Group pays income tax at local rates in different jurisdictions, with Chinese subsidiaries enjoying a 15% preferential tax rate for high-tech enterprises and others paying at a 25% statutory rate; income tax expense significantly increased during the reporting period, mainly due to government tax refunds in the prior year - Entities in the Cayman Islands and British Virgin Islands are exempt from income tax[21][22] - Hong Kong profits tax rate is 16.5%, with some eligible subsidiaries paying 8.25% on the first HKD 2,000,000 of assessable profits[23] - Chinese high-tech enterprise subsidiaries enjoy a 15% preferential corporate income tax rate, while other Chinese subsidiaries pay at a 25% statutory tax rate[24] Components of Income Tax Expense (RMB '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Current - China Expense for the Period | 1,400 | 499 | | Under/(Over) Provision in Prior Years | 469 | (933) | | Deferred | (16) | (186) | | Total Tax Expense/(Credit) for the Period | 1,853 | (620) | Dividends The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025[26] Loss/Earnings Per Share Attributable to Owners of the Parent For the six months ended June 30, 2025, the company's basic and diluted loss per share were both RMB (0.002), compared to earnings per share of RMB 0.004 in the prior year, reflecting a shift from profit to loss Loss/Earnings Per Share | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Basic Loss/Profit Per Share | RMB (0.002) | RMB 0.004 | | Diluted Loss/Profit Per Share | RMB (0.002) | RMB 0.004 | - Basic earnings per share are calculated based on the profit for the period attributable to owners of the parent and the weighted average number of ordinary shares outstanding during the period[27] - The Group had no potentially dilutive ordinary shares outstanding for the six months ended June 30, 2025, and 2024[28] Trade and Bills Receivables As of June 30, 2025, total trade and bills receivables amounted to RMB 66,187 thousand, a decrease from December 31, 2024; the Group generally offers a 180-day credit period and maintains strict control over outstanding receivables, with no significant concentration of credit risk Trade and Bills Receivables (RMB '000) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade Receivables | 61,937 | 82,155 | | Bills Receivable | 4,250 | 4,461 | | Total | 66,187 | 86,616 | - The credit period generally ranges up to 180 days, and the Group maintains strict control over outstanding receivables with no significant concentration of credit risk[29] Ageing Analysis of Trade Receivables (RMB '000) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 30 days | 12,054 | 34,583 | | 31 to 90 days | 25,152 | 12,561 | | 91 to 180 days | 14,510 | 14,207 | | 181 to 365 days | 7,049 | 17,725 | | Over 1 year | 18,043 | 19,282 | | Total (Unimpaired) | 76,808 | 98,358 | | Impairment | (14,871) | (16,203) | | Total (Impaired) | 61,937 | 82,155 | Trade and Bills Payables As of June 30, 2025, total trade and bills payables amounted to RMB 11,930 thousand, a significant decrease from December 31, 2024; trade payables are typically settled within 90 days and are non-interest bearing Ageing Analysis of Trade and Bills Payables (RMB '000) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 months | 11,867 | 6,142 | | 3 to 6 months | – | 14,769 | | 6 months to 1 year | 63 | – | | Total | 11,930 | 20,911 | - Trade payables are non-interest bearing and typically settled on 90-day terms[31] - Bills payable have a maturity period of six months[32] Share Capital As of June 30, 2025, the company's authorized and issued and fully paid share capital remained unchanged at RMB 1,000 thousand and RMB 840 thousand, respectively Share Capital Composition (RMB '000) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Authorized Share Capital | 1,000 | 1,000 | | Issued and Fully Paid Share Capital | 840 | 840 | - The number of issued shares is 1,234,600,000 ordinary shares with a par value of USD 0.0001 per share[33] Commitments As of the end of the reporting period, the Group had no capital commitments - As of the end of the reporting period, the Group had no capital commitments[33] Approval of Financial Statements The Board of Directors approved and authorized the publication of these interim condensed consolidated financial statements on August 26, 2025 - The Board of Directors approved and authorized the publication of the interim condensed consolidated financial statements on August 26, 2025[33] Business Review and Outlook Market Overview In the first half of 2025, China's automotive industry achieved resilient growth amidst price competition and intelligent technology development, with passenger vehicle sales increasing by 10.8% year-on-year and new energy vehicle penetration exceeding 50% for the first time, while the AI marketing market is projected to reach RMB 66.9 billion with a 26.2% CAGR, and the automotive AI marketing segment is expected to surpass RMB 12 billion - National passenger vehicle sales reached 15.72 million units in the first half of 2025, a year-on-year increase of approximately 10.8%[34] - The market penetration rate of new energy vehicles exceeded 50% for the first time[34] - From January to May 2025, the automotive industry's profit decreased by 11.9% year-on-year, prompting a shift towards "value competition" and AI technology upgrades[34] - The total size of China's AI marketing market is projected to reach RMB 66.9 billion in 2025, with a compound annual growth rate of 26.2%[34] - AI applications in the automotive vertical account for 15% to 18% of the overall AI marketing market, with an estimated scale exceeding RMB 12 billion in 2025[34] - The online penetration rate of the automotive advertising market exceeded 55% in the first half of 2025, projected to rise to 58.6% for the full year[35] Group Overview Established in 2015, the Group is a leading automotive information and digital marketing service provider in China, committed to offering full-scenario marketing solutions through a "content + technology + ecosystem" model; in February 2025, it rebranded as AI X Tech Inc., signaling a strategic upgrade to an AI-driven technology platform focusing on "intelligent technology empowerment, ecosystem value reconstruction" - The Group was established in September 2015 and listed on the Main Board of the Stock Exchange in January 2020[36] - The Group has become a leading automotive information and digital marketing service provider in China, offering full-scenario marketing solutions through a "content + technology + ecosystem" model[36] - In February 2025, the English name was officially changed to AI X Tech Inc., fully upgrading to an AI-driven technology platform[36] - Accelerating the implementation of three core strategies: AI technology breakthroughs, deepening content matrix, and synergistic development in lower-tier markets[36][40] Business Overview For the six months ended June 30, 2025, the Group's operating revenue slightly decreased by 0.9% to RMB 66.4 million, while online advertising services revenue grew by 15.3%; gross profit increased by 3.3% to RMB 43.7 million, but the period saw a loss of RMB 1.8 million, primarily due to surging R&D investments in AI platforms and virtual interaction technologies during strategic transformation - Operating revenue was approximately RMB 66.4 million, a year-on-year decrease of approximately 0.9%[38] - Online advertising services revenue was approximately RMB 64.5 million, a year-on-year increase of approximately 15.3%[38] - Gross profit was approximately RMB 43.7 million, a year-on-year increase of approximately 3.3%[38] - Loss for the period was approximately RMB 1.8 million, primarily due to surging R&D investments in AI platforms and virtual interaction technologies during the strategic transformation period, focusing on platform technology upgrades and ecosystem reconstruction[38] Key Business Milestones The Group continues to consolidate its leading position in vertical sectors, deepen its "technology + content" dual-engine strategy, expand its user base, and fully implement its self-developed AIGC product "AI X," driving the company's transformation into an "AI + ecosystem marketing technology platform" - Continuously deepening the "technology + content" dual-engine strategy, building a comprehensive content system through an upgraded full-scenario media matrix, and precisely reaching users with intelligent distribution technology[39] - Fully launched the self-developed AIGC product "AI X," with core capabilities including diverse content generation, intelligent distribution, precise efficiency control, and data-driven empowerment[41] - The "AI X" distribution system was fully operational in 2025, driving the Group's transformation from a "vertical media service provider" to an "AI + ecosystem marketing technology platform"[41] Outlook In the second half of 2025, the Group will continue to implement its "AI-native driven, ecosystem-wide leap" strategy, reshape its leadership in the vertical media ecosystem, increase AI R&D investment, and proactively plan for ecosystem M&A and strategic collaborations to strengthen its technological foundation and expand market reach - Reshaping vertical media ecosystem leadership: Building a "professional evaluation + user co-creation + AI-assisted creation" three-dimensional content matrix based on the "AI X" intelligent engine, deepening data interoperability with mainstream platforms, and achieving full-chain automation[42] - Increasing AI R&D investment: Systematically investing in AI technology infrastructure, with generative AI as the core engine, to upgrade the technology architecture from tool empowerment to a "decision-making hub + ecological collaboration"[43] - Proactive planning for ecosystem M&A and strategic collaborations: Focusing on technological synergy, scenario entry value, and financial stability to select targets and build a "technology-scenario-data" closed loop[44][47] Financial Review Revenue For the six months ended June 30, 2025, total revenue was approximately RMB 66.4 million, a year-on-year decrease of 0.9%, primarily due to the Group's strategic focus on core business development and proactive scaling back of non-core operations - Total revenue was approximately RMB 66.4 million, a year-on-year decrease of approximately 0.9%[44] - The slight revenue fluctuation primarily stemmed from a strategic focus on core businesses and the proactive scaling back of non-core operations[44] Cost of Sales Cost of sales decreased by approximately 8.1% to RMB 22.7 million, mainly due to a strategic focus on core businesses, improved marketing efficiency, reduced cost input for non-core businesses, and refined cost control - Cost of sales was approximately RMB 22.7 million, a year-on-year decrease of approximately 8.1%[45] - The reduction in cost of sales was primarily attributed to a strategic focus on core businesses, improved marketing efficiency, reduced costs for non-core businesses, and refined cost control[45] Gross Profit and Gross Profit Margin Gross profit increased by 3.3% to RMB 43.7 million, and the gross profit margin improved from 63.2% to 65.9%, primarily due to the Group's firm focus on high-margin core businesses and optimization of product and customer structures - Gross profit was approximately RMB 43.7 million, a year-on-year increase of approximately 3.3%[46] - Gross profit margin increased from 63.2% to 65.9%[46] - The increase in both gross profit and gross profit margin was due to a focus on high-margin core businesses and optimization of product and customer structures[46] Other Income and Gains Other income and gains decreased by 54.4% to RMB 3.7 million, primarily affected by foreign exchange market fluctuations and a reduction in wealth management income due to general market interest rate cuts - Other income and gains were approximately RMB 3.7 million, a year-on-year decrease of approximately 54.4%[48] - The change was primarily affected by foreign exchange market fluctuations and a general decrease in wealth management income due to market benchmark interest rate reductions[48] Selling and Distribution Expenses Selling and distribution expenses were approximately RMB 29.5 million, a slight year-on-year increase of 0.4%, remaining largely consistent with the prior year - Selling and distribution expenses were approximately RMB 29.5 million, a year-on-year increase of approximately 0.4%, remaining largely stable[49] Administrative Expenses Administrative expenses decreased by 13.1% to RMB 9.7 million, primarily due to organizational structure optimization and improved operational efficiency from digital transformation - Administrative expenses were approximately RMB 9.7 million, a year-on-year decrease of approximately 13.1%[50] - The decrease was primarily due to overall organizational structure optimization and improved operational efficiency resulting from digital transformation initiatives[50] Research and Development Expenses Research and development expenses increased by 12.1% to RMB 6.8 million, primarily due to the Group's strategic intensification of investment in core AI marketing technologies to strengthen long-term technological barriers - Research and development expenses were approximately RMB 6.8 million, a year-on-year increase of approximately 12.1%[51] - The increase was primarily due to strategic intensification of investment in core AI marketing technologies to strengthen long-term technological barriers[51] Finance Costs Finance costs were approximately RMB 0.1 million, consistent with the prior year - Finance costs were approximately RMB 0.1 million, equivalent to the prior year[52] Income Tax Expense Income tax expense was approximately RMB 1.9 million, a significant year-on-year increase of 398.9%, primarily because the prior year benefited from government tax refunds, while the actual tax rate for the reporting period remained consistent with previous periods - Income tax expense was approximately RMB 1.9 million, a year-on-year increase of approximately 398.9%[53] - The increase was primarily due to government tax refunds enjoyed in the prior year, with the actual tax rate for the reporting period remaining consistent with previous periods[53] Loss/Profit for the Period Loss attributable to owners of the Group was approximately RMB 1.8 million, a 140.9% decrease compared to a profit of RMB 4.3 million in the prior year, mainly due to reduced other income and gains and increased income tax expense - Loss attributable to owners of the Group was approximately RMB 1.8 million, a year-on-year decrease of approximately 140.9%[54] - The loss was primarily due to reduced other income and gains and increased income tax expense[54] Other Financial Information (Non-IFRS Measure): Adjusted Net Profit Adjusted net profit, a non-IFRS measure, provides a clearer perspective on operating performance; for the six months ended June 30, 2025, adjusted net profit was consistent with the loss for the period, both at RMB (1,769) thousand, representing a 140.9% year-on-year decrease - Adjusted net profit is defined as profit for the period plus share-based compensation expenses[55] - This indicator aims to provide useful information regarding financial position and operating results but should not be considered in isolation or as a substitute for analysis under IFRS[55] Non-IFRS Measure Adjusted Net Profit (RMB '000) | Indicator | 2025 | Percentage of Total Revenue | 2024 | Percentage of Total Revenue | Year-on-Year Percentage Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Profit for the Period | (1,769) | -2.7 | 4,328 | 6.5 | -140.9 | | Add back: Share-based Compensation Expenses | 0 | 0 | 0 | 0 | 0 | | Non-IFRS Measure Adjusted Net Profit | (1,769) | -2.7 | 4,328 | 6.5 | -140.9 | Liquidity and Capital Resources Liquidity Overview As of June 30, 2025, the Group's current assets were approximately RMB 559.9 million, current liabilities were approximately RMB 77.6 million, and the current ratio improved to 7.2 times, indicating strong liquidity; cash and cash equivalents increased to RMB 280.8 million, with a gearing ratio of 15.3% - Current assets were approximately RMB 559.9 million (December 31, 2024: RMB 556.1 million)[58] - Current liabilities were approximately RMB 77.6 million (December 31, 2024: RMB 84.2 million)[58] - The current ratio improved from 6.6 times as of December 31, 2024, to 7.2 times as of June 30, 2025[58] - Cash and cash equivalents were approximately RMB 280.8 million, primarily from net cash generated from operating activities[59] - The gearing ratio was 15.3% (December 31, 2024: 16.6%)[59] Cash Flow Statement For the six months ended June 30, 2025, net cash generated from operating activities significantly increased to RMB 27.3 million; net cash generated from investing activities was RMB 46.2 million, mainly from the sale of time deposits; and net cash used in financing activities was RMB 0.5 million Key Cash Flow Statement Data (RMB '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 27,341 | 11,559 | | Net Cash Generated from Investing Activities | 46,188 | 13,354 | | Net Cash Used in Financing Activities | (520) | (1,200) | | Net Increase in Cash and Cash Equivalents | 73,009 | 23,713 | | Cash and Cash Equivalents at Beginning of Period | 209,104 | 369,880 | | Cash and Cash Equivalents at June 30 | 280,757 | 394,936 | - Net cash generated from operating activities was approximately RMB 27.3 million, primarily comprising cash generated from operations of approximately RMB 25.0 million and interest and income tax refunds of RMB 4.3 million[62] - Net cash generated from investing activities was approximately RMB 46.2 million, mainly from proceeds from the sale of time deposits of approximately RMB 205.2 million, partially offset by purchases of financial assets and time deposits[63] - Net cash used in financing activities was approximately RMB 0.5 million, primarily comprising payments for lease liabilities[64] Capital Expenditure For the six months ended June 30, 2025, capital expenditure primarily involved the acquisition of property, plant and equipment, amounting to RMB 2,859 thousand, a significant increase from the prior year, while intangible asset capital expenditure was zero Capital Expenditure (RMB '000) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Property, Plant and Equipment | 2,859 | 732 | | Intangible Assets | – | 6,001 | - Capital expenditure primarily includes the acquisition of property, plant and equipment (such as computer and electronic equipment) and intangible assets like computer software and website usage rights[65] Foreign Exchange Fluctuation Risk The Group's operations are primarily conducted in China, with most transactions settled in RMB, and the Board believes there is no significant foreign exchange risk; no derivative activities or hedging of foreign exchange risk were undertaken during the reporting period - The Group's operations are primarily conducted in China, with most transactions settled in RMB, and there is no significant foreign exchange risk[67] - No derivative activities or hedging of foreign exchange risk were undertaken during the reporting period[67] Treasury Policy The Group adopts a prudent financial management approach, with the majority of cash and cash equivalents held by Chinese financial institutions, and manages liquidity risk by monitoring the maturity dates of financial liabilities and assets, as well as projected operating cash flows - The Group adopts a prudent financial management approach, with the vast majority of cash and cash equivalents held by major financial institutions in China[68] - Liquidity risk is managed by monitoring the risk of funding shortfalls[68] Pledge of Assets As of June 30, 2025, the Group had not pledged any assets as collateral for bank borrowings or any other financing activities - As of June 30, 2025, the Group had not pledged any assets[69] Significant Investments, Material Acquisitions and Disposals of Subsidiaries and Capital Assets The Group's financial asset investments primarily include unlisted investment funds and wealth management products; as of June 30, 2025, the Group held a 58.79% interest in Ruibo Fund with an investment cost of RMB 30,000 thousand and a fair value of RMB 25,571 thousand, representing approximately 4.2% of the Group's total assets; there were no other significant investments, acquisitions, or disposals during the reporting period - Financial asset investments primarily include unlisted investment funds and wealth management product investments[70] Significant Investment: Ruibo Fund | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Percentage of Interest Held | 58.79% | 58.79% | | Investment Cost (RMB '000) | 30,000 | 30,000 | | Fair Value (RMB '000) | 25,571 | 25,571 | | Percentage of Group's Total Assets | Approx. 4.2% | - | - During the reporting period, the Group held no other significant investments and made no material acquisitions or disposals of subsidiaries, associates, and joint ventures[72] Contingent Liabilities As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[73] Employees and Remuneration Policy As of June 30, 2025, the Group had 77 full-time employees, a decrease from 126 in the prior year, with employee benefit expenses of approximately RMB 22.2 million; the Group has established effective performance appraisal and incentive plans, and adopted a post-IPO restricted share unit scheme to attract and retain talent - As of June 30, 2025, the Group had 77 full-time employees (June 30, 2024: 126 employees)[74] - For the six months ended June 30, 2025, employee benefits and expenses were approximately RMB 22.2 million[74] - The Group has established an effective employee performance appraisal system and employee incentive plan, and adopted a post-IPO restricted share unit scheme to attract and retain talent and drive overall performance[75] Material Events After the Reporting Period There were no material events after June 30, 2025, that would significantly impact the operating and financial results up to the date of this announcement - There were no material events after June 30, 2025[76] Interim Dividend The Board of Directors resolved not to pay any interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board of Directors resolved not to pay any interim dividend for the six months ended June 30, 2025[77] Corporate Governance The company is committed to maintaining high standards of corporate governance and complies with the Corporate Governance Code set out in Appendix C1 of the Listing Rules; despite the Chairman and Chief Executive Officer roles being held by Mr. Xu, deviating from Code Provision C.2.1, the Board believes this arrangement ensures consistent strategic planning and management oversight for the Group - The company has adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules[78] - Mr. Xu concurrently serves as the Chairman and Chief Executive Officer, deviating from Code Provision C.2.1, but the Board believes this arrangement ensures consistent leadership and efficient strategic planning for the Group[78] - The Board of Directors comprises a balanced mix of members with diverse experience and industry backgrounds, including three independent non-executive directors[79] Standard Code for Securities Transactions The company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions, and all directors confirmed their compliance with the code during the reporting period - 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[80] - All directors confirmed their compliance with the Standard Code throughout the reporting period[80] Purchase, Sale or Redemption of the Company's Shares During the reporting period, neither the company nor any of its subsidiaries purchased, redeemed, or sold any of the company's listed securities; as of June 30, 2025, and up to the date of this announcement, no restricted share units were granted, and the company held no treasury shares - During the reporting period, neither the company nor any of its subsidiaries purchased, redeemed, or sold any of the company's listed securities[81] - As of June 30, 2025, and up to the date of this announcement, no restricted share units were granted[81] - As of June 30, 2025, the company held no treasury shares[82] Audit Committee The Audit Committee, comprising three independent non-executive directors, has reviewed the accounting principles and practices adopted by the Group and confirmed that the interim results for the six months ended June 30, 2025, were properly prepared - The Audit Committee comprises three independent non-executive directors: Mr. Wu Haoyun (Chairman), Mr. Xu Xiangyang, and Mr. Sun Yong[83] - The Audit Committee has reviewed the interim condensed consolidated financial statements and the interim results announcement, deeming them properly prepared in accordance with relevant accounting standards, rules, and regulations[83] Publication of Interim Results Announcement and Interim Report This interim results announcement has been published on the Stock Exchange website and the company's website; the interim report will be dispatched to shareholders and published on the Stock Exchange and company websites in due course as required - The interim results announcement has been published on the Stock Exchange website www.hkexnews.hk and the company's website **www.cheshi.com**[84](index=84&type=chunk) - The interim report will be dispatched to shareholders and published on the Stock Exchange and the company's website in due course as required[84] Definitions This section provides definitions for key terms used throughout the interim results announcement - This section provides definitions for key terms used in the interim results announcement, including AI, Audit Committee, Board, Corporate Governance Code, Chairman, China, the Company, Directors, the Group, Hong Kong, HK$, Listing Date, Listing Rules, Mr. Xu, Standard Code, Post-IPO Restricted Share Unit Scheme, R&D, RMB, Reporting Period, SaaS, Shares, Shareholders, Stock Exchange, THB, US$, and Percentage[85][86] Board of Directors This section lists the members of the Board of Directors, including executive and independent non-executive directors - The Board of Directors includes Executive Directors Mr. Xu Chong, Mr. Liu Lei, Mr. Lin Yuqi, and Ms. Zhang Nan; and Independent Non-Executive Directors Mr. Xu Xiangyang, Mr. Sun Yong, and Mr. Wu Haoyun[87]