驴迹科技(01745) - 2025 - 中期业绩

Executive Summary The company's financial performance for the period shows revenue growth, a decline in gross profit and margin, but an increase in profit for the period Report Period Key Financial Indicators | Indicator | 2025 (RMB million) | 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 304.9 | 268.5 | +13.6% | | Gross Profit | 85.9 | 99.7 | -13.8% | | Profit for the Period | 56.1 | 52.3 | +7.3% | | Gross Profit Margin | 28.2% | 37.1% | -8.9% | Financial Highlights This section provides an overview of the company's financial performance and key operating metrics for the period Financial Summary This section details the unaudited consolidated financial data for the six months ended June 30, 2025, including revenue, gross profit, profit before tax, profit for the period, and net profit margin, compared to the same period Financial Summary for the Six Months Ended June 30 | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 304,876 | 268,501 | 13.5% | | Gross Profit | 85,915 | 99,666 | (13.8%) | | Profit Before Tax | 69,593 | 82,616 | (15.8%) | | Profit for the Period | 56,073 | 52,346 | 7.1% | | Net Profit Margin | 18.4% | 19.5% | (1.1%) | Operating Metrics During the reporting period, the number of online electronic guides developed by the company significantly increased, reflecting business expansion and enhanced market coverage Number of Online Electronic Guides Developed | Indicator | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Number of online electronic guides developed (units) | 75,939 | 66,229 | +14.7% | Business Review and Outlook This section reviews the company's operational performance, strategic initiatives, and market outlook, highlighting growth drivers and future plans Performance Highlights Total revenue increased by 13.6% to RMB 304.9 million, driven by online electronic guide sales, while gross margin declined to 28.2% due to reduced travel agency sales and increased intangible asset amortization, yet profit for the period grew by 7.3% to RMB 56.1 million Report Period Performance Overview | Indicator | 2025 (RMB million) | 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 304.9 | 268.5 | +13.6% | | Online Electronic Guide Revenue | 304.7 | - | +13.6% | | Gross Profit | 85.9 | 99.7 | -13.8% | | Gross Profit Margin | 28.2% | 37.1% | -8.9% | | Profit | 56.1 | 52.3 | +7.3% | - Selling and distribution expenses decreased by 59.5% year-on-year, while administrative expenses increased by 10.5% year-on-year[8][10] - The number of developed online electronic guides increased to 75,939 units, covering 51,495 tourist attractions in China[8][14] Business Review As a market leader in online electronic guides, the company capitalized on tourism recovery, achieving significant revenue growth through product optimization, user experience enhancement, and the adoption of AR, MR, and AI technologies, while also advancing its smart digital marketing SaaS business for scenic areas Core Business Development The company, a market leader in online electronic guides, achieved a 13.6% revenue increase by leveraging the tourism recovery, optimizing products, and implementing cost control measures - The company is a market leader in China and global online electronic guide industry, providing proprietary content guides based on cloud systems[9] - Revenue increased by 13.6% year-on-year to RMB 304.9 million, benefiting from tourism recovery[10] - Selling and distribution expenses decreased by approximately 59.4%, while administrative expenses increased by approximately 10.5%[10] Smart Digital Marketing SaaS Business for Scenic Areas The company continuously enhances its 'Shu Jing Tong' SaaS product to offer smart management, marketing, and service solutions for scenic areas, fostering digital transformation and collaborating with mobile internet content creators to boost product visibility and user conversion - Continuously iterating the "Shu Jing Tong" SaaS product, focusing on smart management, marketing, and services to provide digital marketing solutions for scenic areas[11] - Collaborating with mobile internet platform content creators to launch selected versions of Lvji electronic travel guides, building a private domain traffic model to achieve simultaneous growth across online OTA and mobile internet platforms[12] - Developed a smart scenic area management service system to assist government management departments in efficient tourism resource management and researched the SaaS system "Lvji Changyoubao" to enhance scenic area digital operational capabilities[19][20] Content and Technology Innovation The company expands its scenic area coverage and innovates guide content with diverse themes and formats, integrating national IP virtual characters via AR, and developing immersive cultural tourism products using AI large models and MR technology, positioning 'Lvji MR' as a key growth driver - As of June 30, 2025, online electronic guides cover 921 AAAAA-rated, 5,322 AAAA-rated, and 5,874 AAA-rated tourist attractions[16] - Guide content is multi-dimensionally upgraded, covering themes such as literary classics, local customs, science fiction, and children's education, using creative radio dramas and 3D hand-drawn maps[17] - Introduced national IP virtual characters to enable instant interaction with users via AR technology, comprehensively upgrading electronic map guide products[18] - Integrating AI large model technology and MR technology with online electronic guides to create "Void Realm Series offline large-space immersive cultural tourism MR products," positioning it as the company's second growth curve[21] Market Outlook and Strategy The company anticipates a rapid recovery in China's tourism market, driven by smart and digital trends, and plans to leverage technological innovation and strategic partnerships to solidify its market leadership and build a comprehensive cultural tourism service platform Industry Trends and Opportunities China's tourism market is rapidly recovering, with a strong shift towards smart and digital solutions, supported by government initiatives to stimulate domestic consumption and enhance digital infrastructure in scenic areas, presenting significant opportunities for the company's technology-driven approach - China's tourism market is accelerating its recovery, with the industry moving towards smart and digital development, and the government introducing multiple measures to stimulate domestic consumption[22] - National support for "Internet + Tourism" is increasing, with online penetration of travel products expected to rise, accelerating China's tourism digitalization[23] Future Development Strategies The company will maintain its market leadership in online electronic guides by focusing on core strategies, optimizing costs, and building a comprehensive cultural tourism service platform through enhanced products, MR/AI integration, AIGC content creation, and upgraded SaaS solutions - The company will continue to focus on core strategies, maintain its leading position in the online electronic guide market, reduce costs and increase efficiency, and strive to build a full-产业链 cultural tourism service platform[22][24] - Continuously optimize guide products, enrich content, upgrade 3D hand-drawn maps, and integrate MR and AI technologies to enhance consumer interactive experiences[24] - Apply the latest AIGC technology to produce MR digital visual content for scenic areas, establishing a modern industrial content production and management process for scenic area digital content[24] - Optimize "Lvji One-Click Tour" by combining it with scenic area digital upgrade needs to build a comprehensive management, operation, and service system; continuously upgrade SaaS business to create a one-stop smart tourism ecosystem platform[25] Management Discussion and Analysis This section provides a detailed analysis of the company's financial performance, including income statement, balance sheet, and other key financial information, along with explanations for significant changes Consolidated Statement of Profit or Loss Analysis During the reporting period, the company experienced revenue growth, but a significant increase in cost of sales, driven by online travel platform commissions and intangible asset amortization, led to a decline in gross profit; despite a substantial reduction in selling and distribution expenses, administrative expenses and finance costs rose, yet profit for the period still increased Revenue Total revenue increased by 13.6% to RMB 304.9 million, primarily driven by a 24.8% growth in online electronic guide sales through online travel platforms, while sales to travel agencies and via the Lvji APP, along with customized content sales, all decreased Revenue Details | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Sales of online electronic guides through online travel platforms | 293,304 | 235,038 | 24.8% | | Sales of online electronic guides to travel agencies | 11,371 | 33,019 | (65.5%) | | Sales of online electronic guides through Lvji APP | 74 | 123 | (39.8%) | | Sales of customized content | 127 | 321 | (60.4%) | | Total Revenue | 304,876 | 268,501 | 13.6% | - Sales of online electronic guides through online travel platforms accounted for approximately 96.2% of total revenue, with growth primarily due to the recovery of the tourism industry[30] - Revenue from sales to travel agencies decreased by 65.5%, mainly due to a reduction in the number of electronic guides purchased[31] - Revenue from sales of customized content decreased by 66.7%, primarily due to a new round of business adjustments, reducing project-based business for government and enterprise customized solutions, and prioritizing a public cloud strategy[34] Cost of Sales Cost of sales increased by 29.7% to RMB 219.0 million, primarily due to higher platform commissions from increased online electronic guide sales through online travel platforms and increased amortization of intangible assets - Cost of sales increased by 29.7% year-on-year to RMB 219.0 million[35] - The increase was primarily attributable to higher commissions from online travel platforms and increased amortization of intangible assets[35] Gross Profit Gross profit decreased by 13.8% to RMB 85.9 million, with the gross profit margin falling from 37.1% to 28.2%, mainly attributed to reduced sales of online electronic guides through travel agencies and increased intangible asset amortization costs - Gross profit decreased by 13.8% year-on-year to RMB 85.9 million[36] - Gross profit margin decreased from 37.1% to 28.2%[36] - The main reasons were reduced sales through travel agencies and increased amortization costs of intangible assets[36] Other Income and Gains, Net Other income and gains, net, increased by approximately 257.1% to RMB 2.5 million, primarily due to a rise in fair value gains from the embedded derivative component of convertible bonds - Other income and gains, net, increased by 257.1% year-on-year to RMB 2.5 million[37] - The increase was primarily due to an increase in fair value gains from the embedded derivative component of convertible bonds[37] Selling and Distribution Expenses Selling and distribution expenses significantly decreased by 59.5% to RMB 3.2 million, mainly due to reduced offline tourism promotion activities and related employee salaries and benefits - Selling and distribution expenses decreased by 59.5% year-on-year to RMB 3.2 million[38] - The decrease was primarily due to reduced offline tourism promotion and related employee salaries and benefits expenses[38] Administrative Expenses Administrative expenses increased by 9.9% to RMB 10.0 million, primarily driven by the expansion of the consulting personnel team - Administrative expenses increased by 9.9% year-on-year to RMB 10.0 million[39] - The increase was primarily due to the expansion of the consulting personnel team[39] Income Tax Expense Income tax expense decreased to RMB 13.5 million, primarily due to a reduction in taxable income - Income tax expense decreased year-on-year to RMB 13.5 million[40] - The decrease was primarily due to a reduction in taxable income[40] Profit for the Period Profit for the period increased by 7.1% to RMB 56.1 million, but the net profit margin decreased from 19.5% to 18.4%, mainly due to increased intangible asset amortization - Profit for the period increased by 7.1% year-on-year to RMB 56.1 million[41] - Net profit margin decreased from 19.5% to 18.4%, primarily due to increased intangible asset amortization[41] Other Financial Information At the end of the reporting period, trade receivables and prepayments increased, while net current liabilities and the current ratio deteriorated, and cash and cash equivalents decreased; capital expenditures were primarily for intangible asset purchases, with no significant investments, acquisitions, or disposals, and the company maintained 52 full-time employees with performance-based remuneration policies Trade Receivables Trade receivables increased by approximately RMB 52.0 million to RMB 94.3 million, primarily due to increased revenue and a slower recovery of receivables - Trade receivables increased by approximately RMB 52.0 million to RMB 94.3 million[42] - The increase was primarily due to the company's increased revenue and a slower recovery of receivables[42] Prepayments, Deposits and Other Receivables Prepayments, deposits, and other receivables increased by approximately RMB 2.2 million to RMB 59.5 million, mainly due to an increase in prepayments to suppliers - Prepayments, deposits, and other receivables increased by approximately RMB 2.2 million to RMB 59.5 million[43] - The increase was primarily due to an increase in prepayments to suppliers[43] Liquidity and Capital Resources The company's liquidity primarily stems from net cash generated from operations; as of June 30, 2025, cash and cash equivalents were RMB 169.7 million, net current liabilities were RMB 64.3 million, and the current ratio was approximately 0.8 times, all deteriorating from the end of 2024, mainly due to increased trade payables and intangible asset purchases - Liquidity primarily originated from net cash generated from operations[44] Liquidity Status | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 169.7 | 219.5 | | Net Current Liabilities | 64.3 | 2.1 | | Current Ratio | 0.8 times | 1.0 times | | Bank Borrowings | 88.3 | 92.2 | | Gearing Ratio | 8.3% | 9.1% | - Net current liabilities increased and the current ratio decreased, primarily due to an increase in trade payables[45] - Cash and cash equivalents decreased primarily due to an increase in the purchase of intangible assets[45] Capital Expenditures Capital expenditures included the purchase of property, plant, and equipment, which increased by approximately RMB 101,000, and the acquisition of intangible assets, which increased by approximately RMB 111.0 million, primarily due to the increased number of online electronic guides developed - Property, plant and equipment increased by approximately RMB 101,000, mainly due to additions[46] - Intangible assets increased by approximately RMB 111.0 million, primarily due to the increased number of online electronic guides developed, partially offset by amortization of intangible assets of approximately RMB 71.2 million[47] Significant Investments, Acquisitions and Disposals During the reporting period, the company had no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the company had no significant investments, acquisitions, or disposals of any subsidiaries, associates, or joint ventures[48] Future Plans for Material Investments and Capital Assets From the reporting period until the date of this announcement, the company had no plans for material investments and capital assets - From the reporting period until the date of this announcement, the company had no plans for material investments and capital assets[49] Employees and Remuneration Policy As of June 30, 2025, the company employed 52 full-time staff, with remuneration based on performance, experience, capabilities, and market levels, participating in statutory employee benefit schemes, and having no significant labor disputes - As of June 30, 2025, the company had 52 full-time employees[50] - Employee remuneration is determined based on performance, experience, capabilities, and comparable market levels, with participation in statutory employee benefit schemes[50][51] - The company has adopted a share option scheme and a share award scheme, and as of June 30, 2025, 72,450,675 shares have been granted to six selected employees under the share award scheme[50] Contingent Liabilities and Pledge of Assets As of June 30, 2025, the company had no significant contingent liabilities apart from borrowings mentioned in note 18 to the interim condensed consolidated financial statements, and held pledged bank deposits of RMB 0.2 million, primarily for tourism-related business with government authorities - As of June 30, 2025, the company had no significant contingent liabilities other than borrowings[52] - The company had pledged bank deposits of RMB 0.2 million, primarily pledged to government authorities for tourism-related business[52] Interim Condensed Consolidated Financial Statements This section presents the unaudited interim condensed consolidated financial statements, including the statement of profit or loss, statement of comprehensive income, and statement of financial position Interim Condensed Consolidated Statement of Profit or Loss This statement presents the unaudited consolidated profit or loss for the six months ended June 30, 2025, including revenue, cost of sales, gross profit, various expenses, profit before tax, profit for the period, and basic and diluted earnings per share Interim Condensed Consolidated Statement of Profit or Loss Overview | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 304,876 | 268,501 | | Cost of Sales | (218,961) | (168,835) | | Gross Profit | 85,915 | 99,666 | | Profit Before Tax | 69,593 | 82,616 | | Profit for the Period | 56,073 | 52,346 | | Basic and Diluted Earnings Per Share (RMB) | 3.40 cents | 3.20 cents | Interim Condensed Consolidated Statement of Comprehensive Income This statement presents the unaudited consolidated comprehensive income for the six months ended June 30, 2025, including profit for the period and other comprehensive expenses, primarily exchange differences arising from the translation of financial statements, leading to the total comprehensive income for the period Interim Condensed Consolidated Statement of Comprehensive Income Overview | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the Period | 56,073 | 52,346 | | Exchange differences arising from translation of financial statements | (141) | (133) | | Total Comprehensive Income for the Period | 55,932 | 52,213 | Interim Condensed Consolidated Statement of Financial Position This statement presents the unaudited consolidated financial position as of June 30, 2025, including non-current assets, current assets, current liabilities, non-current liabilities, and total equity, compared to December 31, 2024 Interim Condensed Consolidated Statement of Financial Position Overview | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 1,130,140 | 1,021,309 | | Current Assets | 285,916 | 278,564 | | Current Liabilities | 350,248 | 280,688 | | Net Current Liabilities | (64,332) | (2,124) | | Total Assets Less Current Liabilities | 1,065,808 | 1,019,185 | | Non-current Liabilities | 634 | 9,943 | | Net Assets/Total Equity | 1,065,174 | 1,009,242 | Notes to the Interim Condensed Consolidated Financial Information This section provides detailed notes to the interim condensed consolidated financial statements, covering company information, basis of preparation, accounting policies, segment information, and specific financial line items Company Information Lvji Technology Holdings Limited was incorporated in the Cayman Islands on November 7, 2018, and listed on the Main Board of the Stock Exchange on January 17, 2020, operating as an investment holding company with subsidiaries primarily engaged in providing online electronic guide services in China - The company was incorporated in the Cayman Islands on November 7, 2018, and listed on the Main Board of the Stock Exchange on January 17, 2020[56][57] - The company is an investment holding company, and its subsidiaries are primarily engaged in providing online electronic guide services in China[58] Basis of Preparation The interim condensed consolidated financial statements are prepared in RMB under HKAS 34 'Interim Financial Reporting' on a going concern basis, with directors affirming sufficient working capital and no material uncertainties - The interim condensed consolidated financial statements are prepared in accordance with HKAS 34 "Interim Financial Reporting" and presented in RMB[60] - The statements are prepared on a going concern basis, with directors believing the company has sufficient working capital and no material uncertainties[60] Adoption of Revised HKFRS Accounting Standards The interim condensed consolidated financial statements for the reporting period were prepared using accounting policies consistent with the annual financial statements for the year ended December 31, 2024, with the adoption of HKAS 21 (Amendment) 'Lack of Exchangeability' effective January 1, 2025, having no material impact - HKAS 21 (Amendment) "Lack of Exchangeability", effective January 1, 2025, was adopted[62] - This amendment did not have a material impact on the Group's interim condensed consolidated financial statements[62] Operating Segment Information The Group primarily operates as an online electronic guide provider in Mainland China, and due to the concentration of revenue and operating profit within this region, no geographical segment information is presented, with no single customer contributing 10% or more of total revenue during the period - The Group primarily operates as an online electronic guide provider in Mainland China, and no geographical segment information is presented[63][64] - During the reporting period, no single customer's revenue accounted for 10% or more of the Group's total revenue[65] Revenue This section details the Group's performance obligations and revenue analysis, primarily from online electronic guide sales through online travel platforms, with performance obligations fulfilled upon end-user activation, while sales to travel agencies and customized content sales are recognized upon transfer and customer acceptance, respectively - Performance obligations for sales of online electronic guides through online travel platforms and the Lvji APP are completed upon end-user activation[66] - Performance obligations for sales of online electronic guides to travel agencies are completed upon transfer of the guides to travel agencies[67] - Performance obligations for sales of customized content are completed upon inspection and acceptance of the content by the customer[68] Revenue Analysis | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Sales of online electronic guides through online travel platforms | 293,304 | 235,038 | | Sales of online electronic guides to travel agencies | 11,371 | 33,019 | | Sales of online electronic guides through Lvji APP | 74 | 123 | | Sales of customized content | 127 | 321 | | Total | 304,876 | 268,501 | Other Income and Gains, Net Other income and gains, net, increased by approximately 257.1% to RMB 2.5 million, primarily due to a rise in fair value gains from the embedded derivative component of convertible bonds Other Income and Gains, Net | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest income | 246 | 229 | | Consulting fees | – | 643 | | Government grants | – | 44 | | Fair value gain on embedded derivative component of convertible bonds | 2,242 | – | | Exchange loss, net | (80) | (311) | | Others | 57 | 63 | | Total | 2,465 | 668 | - The increase was primarily due to an increase in fair value gains from the embedded derivative component of convertible bonds[37] Finance Costs Finance costs significantly increased from approximately RMB 0.2 million to RMB 3.1 million, mainly due to a substantial rise in financing costs for convertible bonds and bank borrowings Finance Costs Details | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Finance costs on lease liabilities | 36 | 114 | | Finance costs on convertible bonds | 1,384 | – | | Finance costs on bank borrowings | 1,723 | 107 | | Total | 3,143 | 221 | Profit Before Tax This section details the various expenses and income deducted from or included in profit before tax, such as commissions, depreciation, amortization, research and development costs, exchange losses, expected credit loss provisions, and salaries and benefits Profit Before Tax Deductions/(Additions) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Commissions | 146,652 | 117,519 | | Amortization of intangible assets | 71,185 | 50,734 | | Research and development costs | 509 | 2,119 | | Provision for expected credit losses on trade receivables | 1,861 | 210 | | Wages, salaries and bonuses | 3,450 | 4,029 | Income Tax Expense Income tax expense for the period decreased to approximately RMB 13.5 million from RMB 30.3 million in the prior period, primarily due to a reduction in taxable income, with Lvji Technology Group enjoying a preferential 15% corporate income tax rate as a 'High-New Technology Enterprise' Income Tax Expense | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current income tax | 13,880 | 31,871 | | Over-provision in prior year | (360) | (1,601) | | Total Income Tax Expense | 13,520 | 30,270 | - The decrease in income tax expense was primarily due to a reduction in taxable income[40] - Lvji Technology Group, as a "High-New Technology Enterprise," is eligible for a preferential income tax rate of 15% under qualifying conditions, valid until December 2026[75] Dividends The company and its subsidiaries did not declare or pay any dividends during the reporting period or the corresponding prior period - The company and its subsidiaries did not declare or pay any dividends during the reporting period or the corresponding prior period[76] Earnings Per Share Attributable to Owners of the Company Basic and diluted earnings per share are calculated based on profit attributable to owners of the company and the weighted average number of ordinary shares outstanding, with diluted earnings per share being identical to basic earnings per share due to the absence of dilutive potential ordinary shares in both periods Earnings Per Share Calculation | Item | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Profit attributable to owners of the company (RMB thousand) | 56,073 | 52,346 | | Weighted average number of ordinary shares outstanding | 1,647,201,000 | 1,635,953,000 | - Diluted earnings per share are the same as basic earnings per share because there were no dilutive potential ordinary shares in either period[80] Property, Plant and Equipment During the reporting period, the Group's cost of acquiring property, plant, and equipment was RMB 121,000, representing an increase of approximately 594.1% compared to December 31, 2024 - During the reporting period, the Group's cost of acquiring property, plant and equipment was RMB 121,000[81] - This represents an increase of approximately RMB 101,000 or 594.1% from December 31, 2024, to June 30, 2025[46] Intangible Assets During the reporting period, the Group's cost of acquiring intangible assets was RMB 182,154,000, an increase compared to RMB 164,206,000 in the corresponding prior period - During the reporting period, the Group's cost of acquiring intangible assets was RMB 182,154,000[82] - This represents an increase compared to RMB 164,206,000 in the corresponding prior period[82] Trade Receivables As of June 30, 2025, total trade receivables significantly increased to RMB 94,321 thousand from RMB 42,341 thousand as of December 31, 2024, primarily concentrated in the 0 to 3 months aging category Trade Receivables Aging Analysis | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 3 months | 94,205 | 31,582 | | 3 to 6 months | 116 | 9,719 | | 6 months to 1 year | – | 1,040 | | Total | 94,321 | 42,341 | - The increase in trade receivables was primarily due to the company's increased revenue and a slower recovery of receivables[42] Prepayments, Deposits and Other Receivables As of June 30, 2025, total prepayments, deposits, and other receivables slightly increased to RMB 59,457 thousand from RMB 57,303 thousand as of December 31, 2024, mainly due to an increase in prepayments to suppliers Prepayments, Deposits and Other Receivables Details | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Prepayments to suppliers | 5,449 | 5,994 | | Prepaid taxes and other recoverable taxes | 11,818 | 10,858 | | Prepayments (non-current) | 44,796 | 44,150 | | Other receivables | 1,253 | 793 | | Less: Provision for expected credit losses | (4,252) | (5,290) | | Total | 59,457 | 57,303 | - The increase was primarily due to an increase in prepayments to suppliers[43] Trade Payables As of June 30, 2025, total trade payables significantly increased to RMB 50,864 thousand from RMB 14,339 thousand as of December 31, 2024, primarily concentrated in the 3 to 12 months aging category Trade Payables Aging Analysis | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 3 months | 20,333 | 13,938 | | 3 to 12 months | 30,196 | 6 | | 1 to 2 years | 62 | 35 | | Over 2 years | 273 | 360 | | Total | 50,864 | 14,339 | - Trade payables are interest-free and generally settled within 30 days[86] Other Payables and Accrued Expenses As of June 30, 2025, total other payables and accrued expenses increased to RMB 61,147 thousand from RMB 47,760 thousand as of December 31, 2024, primarily due to an increase in other tax payables Other Payables and Accrued Expenses Details | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Other payables | 8,946 | 5,194 | | Accrued salaries and benefits | 1,407 | 1,500 | | Other tax payables | 50,794 | 41,066 | | Total | 61,147 | 47,760 | - Payables are unsecured, interest-free, and repayable on demand[87] Contract Liabilities As of June 30, 2025, contract liabilities increased to RMB 1,737 thousand from RMB 796 thousand as of December 31, 2024, primarily from deposits received for customized content contracts, with all deposits expected to be settled within one year - As of June 30, 2025, contract liabilities were RMB 1,737 thousand, an increase from RMB 796 thousand as of December 31, 2024[88] - Contract liabilities primarily arise from deposits received for customized content contracts, typically 50% of the contract amount upon signing[88] - Unsettled contract liabilities of RMB 796,000 at the beginning of the period were recognized as revenue during the reporting period[89] Borrowings As of June 30, 2025, total bank borrowings slightly decreased to RMB 88,284 thousand from RMB 92,172 thousand as of December 31, 2024, comprising both unsecured and secured portions, guaranteed by Mr. Zang, an associated company, and the company's subsidiaries Borrowings Details | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Repayable within one year | 52,076 | 53,076 | | Repayable in the second year | 5,776 | 5,776 | | Repayable in the third to fifth year | 30,432 | 33,320 | | Total Carrying Amount | 88,284 | 92,172 | Borrowing Types | Type | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Unsecured bank loans | 44,300 | 92,172 | | Secured bank loans | 43,984 | – | | Total | 88,284 | 92,172 | - Bank borrowings are guaranteed by Mr. Zang, an associated company, and the company's subsidiaries[91] Convertible Bonds Convertible bonds issued in September and November 2024 consist of a debt component, initially measured at fair value less transaction costs and subsequently at amortized cost, and an embedded derivative component (conversion option), initially and subsequently measured at fair value with changes recognized in profit or loss Debt Component The debt component of convertible bonds was initially measured at fair value less transaction costs, amounting to RMB 8,060,000, and subsequently measured at amortized cost using the effective interest method, with a carrying amount of RMB 7,345 thousand as of June 30, 2025 - The debt component was initially measured at fair value less transaction costs, amounting to RMB 8,060,000[95] - Subsequently measured at amortized cost using the effective interest method, with an effective interest rate ranging from 11.8% to 18.4% per annum[95][96] - As of June 30, 2025, the carrying amount of the debt component was RMB 7,345 thousand[96] Embedded Derivative Component The embedded derivative component (conversion option) of convertible bonds was initially measured at fair value, amounting to RMB 2,912,000, and subsequently measured at fair value with changes recognized in profit or loss, with a carrying amount of RMB 424 thousand as of June 30, 2025 - The embedded derivative component was initially measured at fair value, amounting to RMB 2,912,000[97] - Subsequently measured at fair value with changes in fair value recognized in profit or loss[97] - As of June 30, 2025, the carrying amount of the embedded derivative component was RMB 424 thousand[98] Share Capital As of June 30, 2025, the company's authorized share capital comprised 10,000,000,000 ordinary shares with a par value of USD 0.01 each, with 1,647,200,675 shares issued and fully paid, amounting to RMB 113,675 thousand Share Capital Composition | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of authorized ordinary shares | 10,000,000,000 | 10,000,000,000 | | Number of issued and fully paid shares | 1,647,200,675 | 1,647,200,675 | | Issued and fully paid share capital (RMB thousand) | 113,675 | 113,675 | - On February 29, 2024, 11 subscribers subscribed for 75,100,000 shares, of which 35,100,000 shares were fully paid, with net proceeds of approximately HKD 15,795,000[99] Commitments and Contingent Liabilities As of the end of the reporting period, the Group had no material commitments or significant contingent liabilities - As of the end of the reporting period, the Group had no material commitments[100] - As of the end of the reporting period, the Group had no significant contingent liabilities[101] Events After the Reporting Period On August 20, 2025, the company completed a rights issue of 843,600,337 new shares, raising net proceeds of approximately HKD 141.6 million, with the fully paid rights shares commencing trading on the Stock Exchange on August 21, 2025 - On August 20, 2025, the company completed a rights issue of 843,600,337 new shares[102] - The net proceeds from the rights issue were approximately HKD 141.6 million[102] - The fully paid rights shares commenced trading on the Stock Exchange on August 21, 2025[102] Approval of Financial Statements The financial statements were approved and authorized for issue by the Board of Directors on August 27, 2025 - The financial statements were approved and authorized for issue by the Board of Directors on August 27, 2025[103] Other Information This section covers the utilization of proceeds from global offering and placing, corporate governance and compliance, and other relevant disclosures Use of Proceeds from Global Offering and Placing The company utilized approximately HKD 579.2 million from the global offering and HKD 27.04 million from the placing in accordance with the purposes stated in the prospectus or as subsequently revised - The net proceeds from the global offering were approximately HKD 580.0 million, and from the placing, approximately HKD 27.04 million[104] - Approximately HKD 579.2 million from the global offering and HKD 27.04 million from the placing have been utilized[104] Corporate Governance and Compliance During the reporting period, the company complied with all applicable code provisions of the Corporate Governance Code, adopted the Model Code for directors' securities transactions with no non-compliance found, and its audit committee reviewed the unaudited interim condensed consolidated financial results Compliance with Corporate Governance Code The company adopted and applied the principles and code provisions of the Corporate Governance Code, complying with all applicable provisions during the reporting period - The company has adopted and applied the principles and code provisions of the Corporate Governance Code, complying with all applicable code provisions during the reporting period[105] Compliance with Model Code The company adopted the Model Code for directors' securities transactions, with all directors confirming compliance, and no instances of non-compliance by employees were identified - The company has adopted the Model Code as a code of conduct for directors' securities transactions, and directors have confirmed compliance[107] - The company found no instances of non-compliance with the Model Code by employees[107] Purchase, Sale or Redemption of the Company's Listed Securities During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities, and as of June 30, 2025, the company held no treasury shares - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[108] - As of June 30, 2025, the company held no treasury shares[109] Audit Committee The Audit Committee, composed of three independent non-executive directors with terms of reference compliant with the Listing Rules, reviewed the Group's unaudited interim condensed consolidated financial results for the reporting period - The Audit Committee comprises three independent non-executive directors, and its terms of reference comply with the Listing Rules[110] - The Audit Committee has reviewed the Group's unaudited interim condensed consolidated financial results for the reporting period[110] Interim Dividend The Board of Directors resolved not to declare an interim dividend for the reporting period to shareholders - The Board of Directors has resolved not to declare an interim dividend for the reporting period to shareholders[112] Events After June 30, 2025 On August 20, 2025, the company completed a rights issue of 843,600,337 new shares, raising net proceeds of approximately HKD 141.6 million, with no other significant matters requiring disclosure known to the directors - On August 20, 2025, the company completed a rights issue of 843,600,337 new shares, with net proceeds of approximately HKD 141.6 million[111] Publication of Interim Results Announcement and Interim Report This announcement is published on the Stock Exchange and the company's websites, and the interim report, containing all information required by Appendix D2 of the Listing Rules, will be circulated and dispatched to shareholders and published on both websites in due course - This announcement is published on the Stock Exchange website and the company's website[113] - The interim report will be circulated and dispatched to shareholders and published on the Stock Exchange and the company's websites in due course[113] Acknowledgement The Board of Directors extends its sincere gratitude to shareholders, the management team, employees, business partners, and customers for their support and contributions to the Group - The Board of Directors extends its sincere gratitude to shareholders, the management team, employees, business partners, and customers for their support and contributions[114] Definitions This section provides a glossary of key terms and definitions used throughout the report