太平洋网络(00543) - 2025 - 中期业绩

Financial Performance Overview Condensed Consolidated Interim Statement of Profit or Loss During the reporting period, the company's revenue slightly decreased year-on-year, while gross profit significantly declined, leading to a shift from operating profit to loss and ultimately a net loss | Metric | H1 2025 (RMB '000) | H1 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 272,860 | 276,378 | | Cost of Revenue | (192,464) | (170,936) | | Gross Profit | 80,396 | 105,442 | | Operating (Loss)/Profit | (8,427) | 10,428 | | Loss/Profit for the Period | (8,571) | 10,130 | | Basic and Diluted Loss/Earnings Per Share (RMB cents) | (0.76) cents | 0.89 cents | Condensed Consolidated Interim Statement of Comprehensive Income During the reporting period, the company's total comprehensive loss matched the loss for the period at RMB 8,571 thousand, compared to a total comprehensive income of RMB 10,130 thousand in the prior year period | Metric | H1 2025 (RMB '000) | H1 2024 (RMB '000) | | :--- | :--- | :--- | | Loss/Profit for the Period | (8,571) | 10,130 | | Other Comprehensive Income | — | — | | Total Comprehensive Loss/Income for the Period | (8,571) | 10,130 | Condensed Consolidated Interim Statement of Financial Position As of June 30, 2025, the company's total assets and total equity both decreased, with a corresponding reduction in total liabilities | Metric | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Total Assets | 867,085 | 982,297 | | Total Equity | 637,203 | 695,832 | | Total Liabilities | 229,882 | 286,465 | Condensed Consolidated Interim Statement of Changes in Equity For the six months ended June 30, 2025, the company's total equity decreased due to the loss for the period and cash dividend payments | Equity Item | Balance as of January 1, 2025 (RMB '000) | Loss for the Period (RMB '000) | Cash Dividends (RMB '000) | Balance as of June 30, 2025 (RMB '000) | | :--- | :--- | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | 695,832 | (8,571) | (51,095) | 637,203 | Condensed Consolidated Interim Statement of Cash Flows During the reporting period, net cash from operating activities significantly increased, but investing activities shifted from net inflow to net outflow, and cash outflow from financing activities increased, resulting in a net decrease in cash and cash equivalents | Cash Flow Item | H1 2025 (RMB '000) | H1 2024 (RMB '000) | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 28,655 | 11,469 | | Net Cash (Used in)/Generated from Investing Activities | (172) | 18,262 | | Net Cash Used in Financing Activities | (51,767) | (48,462) | | Net Decrease in Cash and Cash Equivalents | (23,284) | (18,731) | Notes to the Interim Financial Information 1. General Information Pacific Online Limited is incorporated in the Cayman Islands, primarily engaged in internet advertising services in China, with shares listed on the Hong Kong Stock Exchange, and its interim financial information is presented in RMB and approved for publication by the Board - The Company is incorporated in the Cayman Islands and primarily provides internet advertising services in China[13][14] - The Company's shares have been listed on The Stock Exchange of Hong Kong Limited since December 18, 2007[15] - The interim financial information is presented in RMB and was approved for issue by the Board of Directors on August 27, 2025[16][17] 2. Basis of Preparation and Accounting Policies The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 and should be read in conjunction with the annual financial report and company announcements - The interim financial information has been prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting'[18] - The interim financial information should be read in conjunction with the annual report for the year ended December 31, 2024, and any announcements made by the Company during the interim reporting period[18] 3. Accounting Policies Except for income tax estimates and newly effective HKFRS amendments, accounting policies for the current period are consistent with the prior year, with no significant impact from new standard amendments on the Group's financial statements - The accounting policies applied are consistent with those described in the financial statements for the year ended December 31, 2024, except for the estimation of income tax based on the applicable tax rate for the expected annual total profit and the adoption of amendments to Hong Kong Financial Reporting Standards effective for the financial year ending December 31, 2025[19] - New standards, amendments to existing standards, and interpretations effective for the financial year beginning January 1, 2025, have had no significant impact on the Group's financial statements[19] 4. Segment Information The Group primarily provides internet advertising services, with operating segments categorized by different internet portals (PCauto, PConline, and others), and all revenue is derived from customers in China - The reportable operating segments are PCauto, PConline, and others[21] - All of the Group's revenue is derived from customers in China, and most non-current assets (excluding club memberships and investments in financial assets classified as intangible assets) are located in China[24][25] Timing of Revenue Recognition The Group's revenue is primarily recognized over time, with PCauto and PConline being the main revenue sources | Timing of Revenue Recognition | H1 2025 (RMB '000) | H1 2024 (RMB '000) | | :--- | :--- | :--- | | — Over time | 206,956 | 198,642 | | — At a point in time | 65,904 | 77,736 | | Revenue | 272,860 | 276,378 | Revenue from Major Customers In H1 2025, Customer A contributed 20% of total revenue, while Customer B's contribution was less than 10%, indicating a decrease in major customer concentration | Customer | H1 2025 Revenue Contribution | H1 2024 Revenue Contribution | | :--- | :--- | :--- | | Customer A | 20% | 21% | | Customer B | * (Less than 10%) | 10% | 5. Other Income Other income decreased year-on-year in H1 2025, primarily due to the absence of additional input VAT deductions during the period, though dividend income from financial asset investments increased | Other Income Item | H1 2025 (RMB '000) | H1 2024 (RMB '000) | | :--- | :--- | :--- | | Rental income | 3,145 | 3,870 | | Government grants | 196 | 1,997 | | Additional input VAT deductions | — | 3,596 | | Dividend income from investments in financial assets | 2,240 | — | | Total | 5,581 | 9,463 | 6. Net Finance Income Net finance income decreased year-on-year in H1 2025, primarily due to lower interest income and net foreign exchange losses | Finance Item | H1 2025 (RMB '000) | H1 2024 (RMB '000) | | :--- | :--- | :--- | | Finance income — Interest income | 1,161 | 2,225 | | Finance costs — Interest expense on lease liabilities | (18) | (1) | | Finance costs — Net foreign exchange losses | (174) | (946) | | Net Finance Income | 969 | 1,278 | 7. Income Tax Expense Income tax expense decreased year-on-year in H1 2025, primarily due to deferred tax contributions, with the company's operating subsidiaries in China enjoying a 15% preferential tax rate as high-tech enterprises | Income Tax Item | H1 2025 (RMB '000) | H1 2024 (RMB '000) | | :--- | :--- | :--- | | Current tax in China | 2 | 56 | | Deferred tax | 1,111 | 1,520 | | Total | 1,113 | 1,576 | - The Company's operating subsidiaries in China (e.g., Guangzhou Pacific Computer) enjoy a 15% preferential tax rate as high-tech enterprises[31] - Eligible Hong Kong indirect holding companies may use a lower withholding tax rate of 5%[31] 8. Loss/Profit Per Share In H1 2025, the company's basic and diluted loss per share was 0.76 RMB cents, compared to a profit of 0.89 RMB cents in the prior year period, primarily due to the net loss for the period Basic Loss/Profit Per Share Based on the loss attributable to owners of the Company and the weighted average number of ordinary shares, the basic loss per share for H1 2025 was 0.76 RMB cents | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Loss/Profit Attributable to Owners of the Company (RMB '000) | (8,571) | 10,130 | | Weighted Average Number of Ordinary Shares ('000 shares) | 1,133,795 | 1,134,030 | | Basic Loss/Profit Per Share (RMB cents) | (0.76) cents | 0.89 cents | Diluted Loss/Profit Per Share Diluted loss per share is equal to basic loss per share as there were no outstanding potentially dilutive share options during the reporting period - For the six months ended June 30, 2025, and 2024, diluted loss/profit per share was equal to basic loss/profit per share, as there were no outstanding potentially dilutive share options[34] 9. Dividends In 2025, the company paid a final dividend of RMB 51,102 thousand related to 2024, and the Board does not recommend an interim dividend for H1 2025 - A final dividend of RMB 4.5 cents per ordinary share for 2024, totaling RMB 51,102,000, was paid in 2025[35] - The Directors do not recommend the payment of any interim dividend for the six months ended June 30, 2025[35] 10. Property and Equipment, Investment Properties, Intangible Assets and Right-of-Use Assets As of June 30, 2025, the net book values of various non-current assets showed slight changes, with property and equipment, investment properties, and intangible assets decreasing, while right-of-use assets slightly increased | Asset Category | Net Book Value as of June 30, 2025 (RMB '000) | Net Book Value as of January 1, 2025 (RMB '000) | Change (RMB '000) | | :--- | :--- | :--- | :--- | | Right-of-use assets | 10,313 | 9,875 | +438 | | Property and equipment | 158,599 | 160,553 | -1,954 | | Investment properties | 51,622 | 52,552 | -930 | | Intangible assets | 8,777 | 9,004 | -227 | 11. Deferred Income Tax Assets As of June 30, 2025, total deferred income tax assets decreased, primarily influenced by changes in impairment allowance for financial assets and accrued advertising and other expenses | Deferred Income Tax Assets | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | — Recoverable within 12 months | 2,857 | 3,530 | | — Recoverable after 12 months | 26,430 | 26,868 | | Total | 29,287 | 30,398 | - Credited to/(charged from) the condensed consolidated interim statement of profit or loss during the period: RMB (1,111) thousand[38] 12. Trade and Bills Receivables, Other Receivables and Prepayments As of June 30, 2025, the total of trade and bills receivables, other receivables, and prepayments significantly decreased, primarily due to a reduction in trade and bills receivables | Item | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade receivables, net of impairment allowance | 307,751 | 341,959 | | Bills receivable, net of impairment allowance | 17,823 | 73,911 | | Other receivables, net of impairment allowance | 7,972 | 7,742 | | Prepaid VAT | 5,087 | 5,890 | | Prepayments to suppliers | 1,056 | 1,331 | | Total | 339,689 | 430,833 | Trade Receivables, Net of Impairment Allowance As of June 30, 2025, total trade receivables decreased, with an impairment allowance reversal, and credit terms generally range from three to twelve months | Aging | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Current to 6 months | 257,154 | 288,597 | | 6 months to 1 year | 43,909 | 47,534 | | 1 to 2 years | 6,643 | 5,785 | | Over 2 years | 45 | 43 | | Total | 307,751 | 341,959 | - The impairment allowance for trade receivables was RMB 108,071 thousand at period-end, with a reversal of RMB 1,707 thousand during the period[40] Other Receivables As of June 30, 2025, other receivables slightly increased, primarily comprising advances to employees, rental receivables, and other amounts | Item | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Advances to employees | 4,549 | 4,244 | | Rental receivables | 134 | 268 | | Others | 3,289 | 3,230 | | Total | 7,972 | 7,742 | 13. Investments in Financial Assets As of June 30, 2025, the fair value of the company's investments in financial assets in private equity funds increased, with the equity interest rising to 18.18% - The Group holds approximately 18.18% equity interest in the fund (December 31, 2024: 15.72%)[42] | Metric | H1 2025 (RMB '000) | H1 2024 (RMB '000) | | :--- | :--- | :--- | | Beginning balance | 25,594 | 31,106 | | Fair value changes | 3,174 | (4,182) | | Redemptions | — | (1,372) | | Ending balance | 28,768 | 25,552 | 14. Ordinary Shares As of June 30, 2025, the total number of ordinary shares issued by the company remained unchanged, but the number of shares held under the share award scheme significantly decreased - As of June 30, 2025, the total number of ordinary shares issued by the Company was 1,135,597,667, which was the same as on December 31, 2024[44] - The number of shares held under the share award scheme decreased from 2,440,000 as of December 31, 2024, to 160,000 as of June 30, 2025[44] 15. Accrued Expenses and Other Payables As of June 30, 2025, the total of accrued expenses and other payables significantly decreased, primarily due to a reduction in accrued expenses and salaries payable | Item | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Accrued expenses | 147,217 | 181,534 | | Salaries payable | 33,304 | 43,744 | | Other payables | 7,063 | 7,488 | | Other taxes payable | 7,422 | 17,492 | | Total | 195,006 | 250,258 | - Accrued expenses primarily refer to accrued service commission fees payable to advertising agencies, outsourcing production costs, and advertising expenses[45] Management Discussion and Analysis Overall Performance Total revenue for H1 2025 decreased by 1.3% year-on-year, but increased outsourcing production costs led to reduced gross profit, shifting the company from a net profit to a net loss compared to the prior year period. The company is investing in new interactive models to counter the decline of traditional advertising and optimize cost management - Total revenue for the first half of the year was approximately RMB 272.9 million, a year-on-year decrease of 1.3%[46] - Loss attributable to owners of the Company was RMB 8.6 million, compared to a net profit of RMB 10.1 million in the corresponding period of 2024[46] - The decrease in gross profit was primarily due to increased outsourcing production costs[46] - The Company has invested in developing new interactive models to create more content-driven advertisements and establish market differentiation[46] Revenue Analysis The Group's total revenue decreased by 1.3% year-on-year, primarily due to a decline in PCauto revenue, while PConline revenue significantly grew boosted by national subsidy policies, and other business revenue decreased due to a downturn in home improvement market consumption - Revenue decreased by 1.3% from RMB 276.4 million for the six months ended June 30, 2024, to RMB 272.9 million for the six months ended June 30, 2025[48] PCauto PCauto revenue decreased by 5.4% year-on-year, primarily due to reduced advertising spending by automakers driven by domestic EV price competition. The company is seeking growth through new products, AI-SAAS toolkits, and online-to-offline activities - PCauto revenue decreased by 5.4% year-on-year to RMB 224.1 million, accounting for 82.1% of the Group's total revenue[47][48] - The decrease in revenue was primarily due to reduced advertising spending by automakers, influenced by domestic electric vehicle price competition[47][48] - The Company is expanding its AI-SAAS toolkit focused on the automotive industry and continues to focus on online-to-offline activities to provide authentic content and build brand awareness[47] PConline PConline revenue significantly increased by 54.9% year-on-year, primarily benefiting from national subsidy policies boosting the consumer electronics industry, which encouraged manufacturers to increase advertising spending - PConline revenue increased by 54.9% year-on-year to RMB 43.6 million, accounting for 16.0% of the Group's total revenue[47][48] - The increase in revenue was due to increased demand from consumer electronics manufacturers, boosted by national subsidy policies[47][48] Other Operating Businesses Revenue from other operating businesses decreased by 54.5% year-on-year, primarily due to an overall decline in home improvement market consumption - Revenue from other operating businesses decreased by 54.5% from RMB 11.4 million to RMB 5.2 million, accounting for 1.9% of the Group's total revenue[49] - The decrease in revenue was primarily due to an overall decline in home improvement market consumption[49] Cost and Expense Analysis During the reporting period, cost of revenue and product development expenses increased, while selling and marketing expenses decreased, and administrative expenses slightly rose Cost of Revenue Cost of revenue increased by 12.6% year-on-year, primarily due to increased outsourcing production costs, leading to a decrease in gross profit margin from 38.2% to 29.5% - Cost of revenue increased by 12.6% from RMB 170.9 million to RMB 192.5 million[50] - Primarily due to increased outsourcing production costs, the gross profit margin decreased from 38.2% to 29.5%[50] Selling and Marketing Expenses Selling and marketing expenses decreased by 3.4% year-on-year, primarily due to reduced advertising expenses during the period - Selling and marketing expenses decreased by 3.4% from RMB 53.7 million to RMB 51.8 million[51] - The decrease was primarily due to reduced advertising expenses during the period[51] Administrative Expenses Administrative expenses increased by 5.6% year-on-year, primarily due to increased staff costs during the period - Administrative expenses increased by 5.6% from RMB 27.9 million to RMB 29.5 million[52] - Primarily due to increased staff costs during the period[52] Product Development Expenses Product development expenses increased by 22.0% year-on-year, primarily due to increased staff costs and general expenses for the R&D team - Product development expenses increased by 22.0% from RMB 16.2 million to RMB 19.7 million[53] - Primarily due to increased staff costs and general expenses for the Group's R&D team[53] Analysis of Other Financial Items During the reporting period, impairment losses on financial assets shifted from provision to reversal, other income and net finance income decreased, other gains turned from losses to gains, and income tax expense decreased, ultimately resulting in a net loss Net Reversal/(Provision) for Impairment Losses on Financial Assets In H1 2025, impairment losses on financial assets shifted from provision to a net reversal of RMB 3,500 thousand, primarily due to the recovery of trade and bills receivables and reduced provisions - Net reversal for impairment losses on financial assets for the six months ended June 30, 2025, was RMB 3.5 million, compared to a net provision of RMB 4.5 million in the corresponding period of 2024[54] - The net reversal for impairment losses on financial assets was primarily due to the recovery of trade and bills receivables and reduced provisions during the period[54] Other Income Other income decreased year-on-year in H1 2025, primarily due to the absence of additional input VAT deductions during the period - Other income for the six months ended June 30, 2025, was RMB 5.6 million, compared to RMB 9.5 million in the corresponding period of 2024[55] - The decrease was due to the absence of additional input VAT deductions during the period[55] Net Other Gains/(Losses) Net other gains for H1 2025 amounted to RMB 3,200 thousand, compared to a loss of RMB 2,200 thousand in the prior year period, primarily benefiting from fair value changes in private equity funds - Other gains for the six months ended June 30, 2025, were RMB 3.2 million, compared to other losses of RMB 2.2 million in the corresponding period of 2024[56] - The gain was primarily due to fair value changes in the fund[56] Net Finance Income Net finance income decreased year-on-year in H1 2025, primarily due to lower interest income - Net finance income for the six months ended June 30, 2025, was RMB 1.0 million, compared to RMB 1.3 million in the corresponding period of 2024[57] - The decrease was primarily due to lower interest income during the period[57] Income Tax Expense Income tax expense decreased by 29.4% year-on-year in H1 2025 - Income tax expense decreased by 29.4% from RMB 1.6 million to RMB 1.1 million[58] Net (Loss)/Profit Attributable to Owners of the Company In H1 2025, the company shifted from a net profit in the prior year period to a net loss of RMB 8,600 thousand - Net loss attributable to owners of the Company for the six months ended June 30, 2025, was RMB 8.6 million, compared to a net profit of RMB 10.1 million in the corresponding period of 2024[59] Liquidity and Financial Resources As of June 30, 2025, the company's cash and cash equivalents decreased, primarily due to cash dividend payments, with no external debt - As of June 30, 2025, the Group had cash and cash equivalents totaling RMB 240.0 million, compared to RMB 263.5 million as of December 31, 2024[60] - The decrease in cash was primarily due to cash dividend payments totaling RMB 51.1 million for the six months ended June 30, 2025[60] - As of December 31, 2024, and June 30, 2025, the Company had no external debt[60] Bank Borrowings As of June 30, 2025, the company had no bank borrowings, resulting in a gearing ratio of zero - As of June 30, 2025, the Group had no bank borrowings, and therefore, its gearing ratio (total bank borrowings to shareholders' equity) was zero[61] Significant Acquisitions and Disposals In H1 2025, the company did not undertake any significant acquisitions or disposals of subsidiaries and associates - For the six months ended June 30, 2025, the Group had no significant acquisitions or disposals of subsidiaries and associates[62] Pledge of Assets As of June 30, 2025, the company had not pledged any assets to secure bank financing - As of June 30, 2025, the Group had not pledged bank deposits or other assets to secure its bank financing[63] Foreign Exchange Risk The company's operating activities are primarily conducted and settled in RMB in mainland China, thus the overall foreign exchange risk is not significant - The Group's operating activities are primarily conducted in mainland China, with most transactions denominated and settled in RMB[64] - The overall foreign exchange risk is considered not significant[64] Employees and Remuneration Information As of June 30, 2025, the company's employee count slightly decreased, and operations were optimized through internal restructuring and process simplification, with remuneration determined by performance and qualifications - As of June 30, 2025, the Group had 731 employees (December 31, 2024: 733), a 0.3% decrease in H1 2025[65] - The Group continues to advance its internal restructuring and streamline its support operations[65] - The Group determines employee remuneration based on factors such as performance and qualifications[65] Corporate Governance and Other Information Purchase, Sale or Redemption of the Company's Listed Securities In H1 2025, neither the company nor its subsidiaries purchased, redeemed, or sold any of its listed securities, nor did it hold any treasury shares - For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[66] - As of June 30, 2025, the Company did not hold any treasury shares[67] Audit Committee The company's Audit Committee comprises four independent non-executive directors, responsible for reviewing accounting principles, audit, risk management, internal controls, and financial reporting matters, and has reviewed these interim results - The Company's Audit Committee comprises all four independent non-executive Directors of the Company[68] - The Audit Committee has reviewed the accounting principles and practices adopted by the Group and discussed matters related to audit, risk management, internal controls, and financial reporting, including the review of these interim results[68] Corporate Governance As of June 30, 2025, the company complied with the Stock Exchange's Corporate Governance Code, though the roles of Chairman and Chief Executive Officer are not separated, with Dr. Lam Wai Yan holding both positions, which the Board believes benefits the Group's business - For the six months ended June 30, 2025, the Company has complied with the code provisions set out in the Corporate Governance Code contained in Appendix C1 to the Rules Governing the Listing of Securities on the Stock Exchange[69] - Code Provision C.2.1 stipulates that the roles of Chairman and Chief Executive Officer should be separate, but Dr. Lam Wai Yan currently holds both positions as Chairman and Chief Executive Officer of the Company[69] - The Board believes that this structure provides strong and consistent leadership for the Group, leading to more efficient and effective business planning and decision-making, as well as in executing long-term business strategies, which is beneficial to the Group's business prospects[69] Acknowledgements The Chairman of the Board, on behalf of the Board, extends sincere gratitude to all employees and shareholders - The Chairman of the Board, on behalf of the Board, extends sincere gratitude to all employees who have contributed to the Group and all shareholders who have continuously supported the Group[70] Board of Directors As of the announcement date, the Board of Directors comprises three executive directors and four independent non-executive directors - The Board includes three executive directors: Dr. Lam Wai Yan, Mr. Ho Kam Wah, and Mr. Wang Da Xin[71] - The Board includes four independent non-executive directors: Mr. Tsui Yiu Wah, Mr. Pak Tai Tak, Mr. Lam Wai Hon, and Ms. Li Kit Ying[71]