华兴资本控股(01911) - 2025 - 中期业绩

Company Overview Report Summary China Renaissance Holdings Limited reported unaudited consolidated results for the six months ended June 30, 2025, reviewed by its audit committee and presented in RMB - Company Name: CHINA RENAISSANCE HOLDINGS LIMITED[2] - Reporting Period: Unaudited interim results for the six months ended June 30, 2025[2][3] - Reviewing Body: The company's Audit Committee reviewed these interim results[3] - Presentation Currency: Unaudited condensed consolidated financial statements are presented in RMB[4] Financial Summary Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary Total revenue and net investment income grew 26.9% to RMB 456 million, with operating profit turning profitable to RMB 75.83 million and profit for the period reaching RMB 66.022 million Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | 425,142 | 328,921 | 96,221 | 29.3% | | Total Revenue and Net Investment Income | 456,407 | 359,527 | 96,880 | 26.9% | | Total Operating Expenses | (380,577) | (447,263) | 66,686 | -14.9% | | Operating Profit/(Loss) | 75,830 | (87,736) | 163,566 | Turned profitable | | Profit/(Loss) Before Tax | 98,013 | (73,619) | 171,632 | Turned profitable | | Income Tax Expense | (31,991) | (12,348) | (19,643) | 159.1% | | Profit/(Loss) for the Period | 66,022 | (85,967) | 151,989 | Turned profitable | | Profit/(Loss) for the Period Attributable to Owners of the Company | 64,984 | (73,822) | 138,806 | Turned profitable | Adjusted Net Loss Attributable to Owners of the Company Adjusted net loss attributable to owners of the company (including unrealized net carried interest) significantly narrowed to RMB 36.993 million, driven by reduced share-based payment expenses and unrealized net carried interest reversal Adjusted Net Loss Attributable to Owners of the Company (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Profit/(Loss) for the Period Attributable to Owners of the Company | 64,984 | (73,822) | 138,806 | Turned profitable | | Add: Share-based payment expenses | 14,037 | 28,308 | (14,271) | -50.4% | | Subtotal before carried interest related adjustments | 79,021 | (45,514) | 124,535 | Turned profitable | | Add: Reversal of unrealized net carried interest | (116,014) | (72,382) | (43,632) | 60.3% | | Adjusted Net Loss Attributable to Owners of the Company | (36,993) | (117,896) | 80,903 | -68.6% | - The reversal of unrealized net carried interest was mainly affected by fair value changes of funds managed by the investment management business, with cumulative total unrealized carried interest of RMB 1.9 billion (corresponding net carried interest of RMB 500 million) as of June 30, 2025[8] Business Review and Outlook Business Review China Renaissance Group achieved strong recovery in H1 2025, with total revenue and net investment income up 27%, operating profit and profit attributable to owners turning profitable, driven by investment management and improved securities performance - In the first half of 2025, China's GDP grew by 5.3% year-on-year, exceeding the full-year target of 5%, laying the foundation for capital market recovery[9] H1 2025 Group Overall Performance | Indicator | H1 2025 (RMB) | Year-on-year Growth | | :--- | :--- | :--- | | Total Revenue and Net Investment Income | 460 million | 27% | | Operating Profit | 76 million | Turned profitable | | Profit Attributable to Owners of the Company | 65 million | Turned profitable | - The investment management business contributed 52% of the Group's total revenue, with fund exits totaling RMB 1.3 billion, and 5 out of 11 main funds and several project funds exceeding 100% DPI and beginning to generate carried interest[10] - Investment banking business achieved revenue of approximately RMB 70 million in the first half, focusing on AI, embodied intelligence, and advanced manufacturing, and earned multiple top industry rankings[11] - China Renaissance Securities' total revenue and net investment income reached RMB 130 million, a 25% year-on-year increase; retail brokerage revenue grew by 110% year-on-year, and operating loss significantly narrowed by 60%[14] Business Outlook China Renaissance will leverage global economic shifts, focusing on AI and Web3.0 through integrated market strategies and traditional-decentralized finance convergence, to foster future industry leaders - Group operations are gradually stabilizing, with continuous improvement in cash flow and financial position[16] - Strategic focus on cutting-edge technology fields with disruptive potential, such as artificial intelligence and embodied intelligence, to identify and cultivate future industry leaders with a forward-looking vision[16] - Innovating business models by synergizing primary and secondary markets, and integrating traditional finance (Tri-Fi) with decentralized finance (De-Fi), to continuously deepen investment in the Web3.0 sector[16] Segment Performance Analysis Segment Revenue and Profit Overview Investment Management segment revenue and net investment income surged 80.8%, with operating profit up 251.7%, while China Renaissance Securities saw 24.5% revenue growth and narrowed losses, and Investment Banking revenue declined 29.0% but losses also narrowed Segment Revenue and Net Investment Income (For the six months ended June 30) | Business Segment | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Investment Banking | 69,318 | 97,570 | (28,252) | -29.0% | | Investment Management | 237,464 | 131,366 | 106,098 | 80.8% | | China Renaissance Securities | 128,810 | 103,466 | 25,344 | 24.5% | | Others | 20,815 | 27,125 | (6,310) | -23.3% | | Total Revenue and Net Investment Income | 456,407 | 359,527 | 96,880 | 26.9% | Segment Operating Profit/Loss (For the six months ended June 30) | Business Segment | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Investment Banking | (29,899) | (61,548) | 31,649 | -51.4% | | Investment Management | 139,018 | 39,531 | 99,487 | 251.7% | | China Renaissance Securities | (17,126) | (42,494) | 25,368 | -59.7% | | Others | (16,163) | (23,225) | 7,062 | -30.4% | | Operating Profit/(Loss) | 75,830 | (87,736) | 163,566 | Turned profitable | Investment Banking Investment Banking segment revenue decreased 29.0% to RMB 69.318 million, mainly due to an 84.1% drop in equity underwriting fees, despite a 122.1% increase in advisory service transaction value, with operating loss narrowing 51.4% Investment Banking Segment Revenue and Expenses (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Advisory Services | 34,950 | 37,873 | (2,923) | -7.7% | | Equity Underwriting | 5,120 | 32,164 | (27,044) | -84.1% | | Sales, Trading and Brokerage | 29,248 | 27,533 | 1,715 | 6.2% | | Segment Revenue | 69,318 | 97,570 | (28,252) | -29.0% | | Staff Costs and Benefits | (67,768) | (112,035) | 44,267 | -39.5% | | Other Operating Expenses | (31,446) | (47,087) | 15,641 | -33.2% | | Segment Operating Expenses | (99,217) | (159,118) | 59,901 | -37.6% | | Segment Operating Loss | (29,899) | (61,548) | 31,649 | -51.4% | Investment Banking Transaction Value (For the six months ended June 30) | Transaction Type | 2025 (RMB millions) | 2024 (RMB millions) | Change (RMB millions) | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Advisory Services | 5,881 | 2,648 | 3,233 | 122.1% | | Equity Underwriting | 1,175 | 1,394 | (219) | -15.7% | | Total | 7,056 | 4,042 | 3,014 | 74.6% | Investment Management Investment Management segment revenue and net investment loss grew 80.8% to RMB 237 million, driven by a 1,356.5% surge in realized carried interest income to RMB 147 million, resulting in a 251.7% increase in operating profit to RMB 139 million Investment Management Segment Revenue, Expenses and Profit (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Management Fees | 107,758 | 154,704 | (46,946) | -30.3% | | Realized Carried Interest Income | 147,208 | 10,107 | 137,101 | 1,356.5% | | Segment Revenue | 254,966 | 164,811 | 90,155 | 54.7% | | Net Investment Loss | (17,502) | (33,445) | 15,943 | -47.7% | | Segment Revenue and Net Investment Loss | 237,464 | 131,366 | 106,098 | 80.8% | | Carried Interest Provision for Management Team and Other Parties | (86,979) | (7,059) | (79,920) | 1,132.2% | | Reversal of Impairment Loss under Expected Credit Loss Model | 56,125 | (4,280) | 60,405 | Not meaningful | | Segment Operating Profit | 139,018 | 39,531 | 99,487 | 251.7% | | Segment Operating Profit Margin | 58.5% | 30.1% | | | Changes in Investments in Self-Managed and Third-Party Private Equity Funds (For the six months ended June 30) | Indicator | Investments in Self-Managed Funds (RMB thousands) | Investments in Third-Party Funds (RMB thousands) | | :--- | :--- | :--- | | Balance as at December 31, 2024 | 1,048,778 | 604,134 | | Capital Injected | 48,724 | 9,814 | | Distributions | (65,135) | (3,988) | | Changes in Value | 2,561 | (38,997) | | Impact of Exchange Rate Changes | (1,815) | (1,742) | | Balance as at June 30, 2025 | 1,033,113 | 569,221 | - As of June 30, 2025, the internal rates of return for investments in self-managed private equity funds and third-party private equity funds were 17.0% and 14.1%, respectively[29] Investment Management Segment Operating Data (As of June 30, 2025) | Indicator | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | | :--- | :--- | :--- | | Committed Capital | 35,174 | 36,118 | | Capital Invested | 30,088 | 30,131 | | Fair Value of Investments | 52,909 | 53,247 | | AUM Generating Management Fees | 12,167 | 13,493 | | Assets Under Management (AUM) | 29,099 | 31,974 | Private Equity Fund Performance Information (As of June 30, 2025) | Fund Type | Committed Capital (RMB millions) | Capital Invested (RMB millions) | Realized Investment Fair Value (RMB millions) | Unrealized Investment Fair Value (RMB millions) | Total Return Multiple on Invested Capital | | :--- | :--- | :--- | :--- | :--- | :--- | | Main Funds | 28,956 | 8,760 | 20,541 | 19,835 | 1.8 | | Specialized Funds | 6,218 | 3,556 | 8,431 | 4,102 | 1.7 | | Total | 35,174 | 12,316 | 28,972 | 23,937 | 1.8 | China Renaissance Securities China Renaissance Securities segment revenue and net investment income grew 24.5% to RMB 128.8 million, driven by strong growth in sales, trading, brokerage, and advisory fees, with operating loss significantly narrowing 59.7% to RMB 17.126 million China Renaissance Securities Segment Revenue, Expenses and Loss (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Advisory and Underwriting Services | 21,203 | 10,988 | 10,215 | 93.0% | | Sales, Trading and Brokerage | 57,830 | 27,505 | 30,325 | 110.3% | | Interest Income | 4,606 | 4,137 | 469 | 11.3% | | Segment Revenue | 83,639 | 42,630 | 41,009 | 96.2% | | Net Investment Income | 45,171 | 60,836 | (15,665) | -25.7% | | Segment Revenue and Net Investment Income | 128,810 | 103,466 | 25,344 | 24.5% | | Segment Operating Expenses | (145,936) | (145,960) | 24 | — | | Segment Operating Loss | (17,126) | (42,494) | 25,368 | -59.7% | - China Renaissance Securities' Duoduo Gold App saw cumulative registered users and cumulative opened accounts increase by 26% and 35%, respectively, compared to the end of 2024[14] Other Businesses The Other segment, comprising wealth management and proprietary investment, saw total revenue and net investment income decrease 23.3% to RMB 20.815 million, with operating loss narrowing 30.4% to RMB 16.163 million due to reduced operating expenses Other Segment Revenue, Expenses and Loss (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Segment Revenue | 17,219 | 23,910 | (6,691) | -28.0% | | Net Investment Income | 3,596 | 3,215 | 381 | 11.9% | | Segment Revenue and Net Investment Income | 20,815 | 27,125 | (6,310) | -23.3% | | Segment Operating Expenses | (36,978) | (50,350) | 13,372 | -26.6% | | Segment Operating Loss | (16,163) | (23,225) | 7,062 | -30.4% | Consolidated Operating Results Total Revenue and Net Investment Income Group total revenue and net investment income increased 26.9% to RMB 456.4 million, driven by a 1,356.5% surge in realized carried interest income and 9.0% growth in transaction and advisory fees, despite declines in management and interest income Revenue and Net Investment Income Details (For the six months ended June 30) | Type | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (RMB thousands) | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Transaction and Advisory Fees | 148,351 | 136,063 | 12,288 | 9.0% | | Management Fees | 108,218 | 159,859 | (51,641) | -32.3% | | Interest Income | 21,365 | 22,892 | (1,527) | -6.7% | | Realized Carried Interest Income | 147,208 | 10,107 | 137,101 | 1,356.5% | | Total Revenue | 425,142 | 328,921 | 96,221 | 29.3% | | Net Investment Income | 31,265 | 30,606 | 659 | 2.2% | | Total Revenue and Net Investment Income | 456,407 | 359,527 | 96,880 | 26.9% | Total Operating Expenses Total operating expenses decreased 14.9% to RMB 380.6 million, driven by lower staff costs, financing costs, and expected credit loss reversals, though carried interest provisions for management teams significantly increased - Staff costs and benefits decreased by 27.4% to RMB 204.9 million year-on-year, with share-based payment expenses decreasing by 50.4%[52] - Financing costs decreased by 38.9% to RMB 4.703 million year-on-year[52] - Carried interest provision for management teams and other parties significantly increased year-on-year to RMB 87 million, consistent with the increase in carried interest income[53] - Reversal of impairment loss under the expected credit loss model was RMB 56.109 million, compared to an impairment loss of RMB 5.899 million in the prior year period[52][19] Operating Profit/Loss The Group achieved an operating profit of RMB 75.83 million, reversing an operating loss of RMB 87.736 million from the prior year period - Operating profit turned from a loss of RMB 87.736 million in the prior year period to a profit of RMB 75.83 million in the current period[54] Other Financial Items Other gains significantly increased to RMB 13.035 million, mainly from government grants and exchange gains, while investment income from incidental investments decreased and share of associates' results was zero - Other gains increased from RMB 0.519 million in the prior year period to RMB 13.035 million in the current period, primarily from government grants and exchange gains[55] - Investment income from certain incidental and ancillary investments decreased from RMB 13.117 million in the prior year period to RMB 9.148 million in the current period[56] - Share of profit of associates decreased from RMB 0.481 million in the prior year period to zero in the current period[57] Profit/Loss Before Tax and Income Tax The Group achieved a profit before tax of RMB 98.013 million, reversing a prior-year loss, with income tax expense significantly increasing due to higher taxable income - Profit before tax turned from a loss of RMB 73.619 million in the prior year period to a profit of RMB 98.013 million in the current period[59] - Income tax expense increased from RMB 12.348 million in the prior year period to RMB 31.991 million in the current period, primarily due to increased taxable income[60] Profit/Loss for the Period and Earnings Per Share Group profit for the period was RMB 66.022 million, with profit attributable to owners at RMB 64.984 million, successfully reversing prior-year losses - Profit for the period turned from a loss of RMB 85.967 million in the prior year period to a profit of RMB 66.022 million in the current period[61] - Profit for the period attributable to owners of the company turned from a loss of RMB 73.822 million in the prior year period to a profit of RMB 64.984 million in the current period[61] Adjusted Net Loss Attributable to Owners of the Company Adjusted net loss attributable to owners of the company (including unrealized net carried interest) significantly narrowed by 68.6% to RMB 37 million for the six months ended June 30, 2025 - Adjusted net loss attributable to owners of the company (including unrealized net carried interest) narrowed from RMB 117.9 million in the prior year period to RMB 37 million in the current period[62] Financial Position and Capital Management Off-Balance Sheet Commitments and Arrangements As of June 30, 2025, the Group had not entered into any off-balance sheet transactions - As of June 30, 2025, the Group had not entered into any off-balance sheet transactions[63] Capital Structure and Liquidity As of June 30, 2025, the Group had no outstanding bank borrowings, holding RMB 2.2329 billion in cash and equivalents, and RMB 2.2457 billion in highly liquid financial assets, with the asset-liability ratio decreasing to 10.0% - As of June 30, 2025, the Group had no outstanding bank borrowings[64] - As of June 30, 2025, the Group held a total of RMB 2.2329 billion in cash and cash equivalents, time deposits, and highly liquid cash management products[64] - As of June 30, 2025, the Group also held RMB 2.2457 billion in highly liquid financial assets, primarily listed company bonds[64] Asset-Liability Ratio | Date | Asset-Liability Ratio | | :--- | :--- | | June 30, 2025 | 10.0% | | December 31, 2024 | 12.2% | Major Investment Activities The Group's major investment activities totaled RMB 2.9498 billion in fair value as of June 30, 2025, a 1.1% decrease from 2024 year-end, encompassing diverse private equity, strategic minority, and digital asset investments Fair Value of Major Investment Activities (As of June 30, 2025) | Investment Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (RMB thousands) | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Investments in Self-Managed Private Equity Funds | 1,033,113 | 1,048,778 | (15,665) | -1.5% | | Investments in Third-Party Private Equity Funds | 569,221 | 604,134 | (34,913) | -5.8% | | Strategic Minority Equity Investments - Preferred Shares | 1,039,564 | 1,272,048 | (232,484) | -18.3% | | Strategic Minority Equity Investments - Non-Associate Holdings | 56,132 | 56,155 | (23) | -0.04% | | Strategic Minority Equity Investments - Listed Company Investments | 173,029 | — | 173,029 | New | | Digital Assets | 78,728 | — | 78,728 | New | | Total | 2,949,787 | 2,981,115 | (31,328) | -1.1% | Future Major Investments and Capital Asset Plans The Board approved a USD 100 million budget for Web3.0 business development and cryptocurrency asset investments over the next two years - The Board resolved to enter the Web3.0 and cryptocurrency asset sectors while solidifying existing businesses, approving a total budget of USD 100 million for the Group's Web3.0 business development and cryptocurrency asset investments over the next two years[68] Significant Acquisitions and Disposals of Subsidiaries and Affiliates The Group had no significant acquisitions or disposals of subsidiaries and affiliates during the reporting period - The Group had no significant acquisitions or disposals of subsidiaries and affiliates for the six months ended June 30, 2025[70] Corporate Governance and Other Information Employees and Remuneration Policy As of June 30, 2025, the Group had 441 full-time employees, with over 86% being advisory and investment professionals, and total remuneration expenses decreased 27.4%, reflecting cost optimization Number of Employees by Function (As of June 30, 2025) | Function | Number of Employees | Percentage | | :--- | :--- | :--- | | Investment Banking | 80 | 18% | | Investment Management | 37 | 8% | | China Renaissance Securities | 258 | 59% | | Others | 3 | 1% | | Group Middle and Back Office | 63 | 14% | | Total | 441 | 100% | - Total remuneration expenses (including share-based payment expenses) for the six months ended June 30, 2025, were RMB 204.9 million, a 27.4% decrease compared to the six months ended June 30, 2024[74] Risk Management The Group primarily operates in China with RMB-settled transactions, managing foreign exchange risk through hedging, and had not pledged any assets as of the reporting period - As of June 30, 2025, the Group had not hedged any financial instruments or used any financial instruments for hedging purposes[75] - As of June 30, 2025, the Group had not pledged any assets[76] Interim Dividend Policy The Board recommended no interim dividend for the six months ended June 30, 2025, noting that dividend payments are discretionary and subject to various financial factors - The Board recommended not to declare an interim dividend for the six months ended June 30, 2025[78] - Dividend payments will depend on factors including the company's liquidity position, cash flow, overall financial condition, capital adequacy, and funding requirements[78] Corporate Governance The company maintains high corporate governance standards, complying with all applicable Stock Exchange codes, with directors and employees adhering to securities transaction standards, and no listed securities repurchased or traded during the period - For the six months ended June 30, 2025, the company complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 to the Listing Rules of the Stock Exchange[81] - Following specific inquiries with all directors and relevant employees, they confirmed compliance with the Model Code for Securities Transactions for the six months ended June 30, 2025[83] - For the six months ended June 30, 2025, neither the company nor any member of the Group purchased, sold, or redeemed any of the company's listed securities[84] Audit Committee and Other Board Committees The Audit Committee reviewed the Group's unaudited interim results and accounting policies, while the company also maintains Nomination, Remuneration, Executive, and ESG Committees - The Audit Committee, comprising four independent non-executive directors, reviewed the Group's unaudited interim results for the six months ended June 30, 2025[85] - In addition to the Audit Committee, the company has also established a Nomination Committee, Remuneration Committee, Executive Committee, and Environmental, Social and Governance Committee[86] Events After Reporting Period Post-reporting period, the company entered a strategic cooperation memorandum with YZILabs Management Ltd on August 22, 2025, to support BNB and BNB Chain ecosystem applications and explore related financial opportunities - On August 22, 2025, the company entered into a strategic cooperation memorandum with YZILabs Management Ltd to establish a strategic cooperation framework to support BNB and BNB Chain ecosystem applications and build a mutually empowering partnership[87] Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the Group reported a profit for the period of RMB 66.022 million, with RMB 64.984 million attributable to owners and basic EPS of RMB 0.13, on total revenue and net investment income of RMB 456.4 million Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Transaction and Advisory Fees | 148,351 | 136,063 | | Management Fees | 108,218 | 159,859 | | Interest Income | 21,365 | 22,892 | | Carried Interest Income | 147,208 | 10,107 | | Total Revenue | 425,142 | 328,921 | | Net Investment Income | 31,265 | 30,606 | | Total Revenue and Net Investment Income | 456,407 | 359,527 | | Staff Costs and Benefits | (204,938) | (282,097) | | Carried Interest Provision for Management Team and Other Parties | (86,979) | (7,059) | | Operating Profit/(Loss) | 75,830 | (87,736) | | Profit/(Loss) Before Tax | 98,013 | (73,619) | | Income Tax Expense | (31,991) | (12,348) | | Profit/(Loss) for the Period | 66,022 | (85,967) | | Profit/(Loss) for the Period Attributable to Owners of the Company | 64,984 | (73,822) | | Basic Earnings/(Loss) Per Share | RMB 0.13 | RMB (0.15) | Condensed Consolidated Statement of Financial Position As of June 30, 2025, Group total assets decreased to RMB 9.4658 billion from RMB 10.5606 billion at 2024 year-end, while net current assets increased to RMB 3.7993 billion Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-current Assets | 3,377,279 | 3,570,799 | | Current Assets | 6,088,497 | 6,989,780 | | Total Assets | 9,465,776 | 10,560,579 | | Current Liabilities | 2,289,218 | 3,451,562 | | Non-current Liabilities | 56,837 | 60,265 | | Net Assets | 7,119,721 | 7,048,752 | | Equity Attributable to Owners of the Company | 6,112,994 | 6,043,575 | | Non-controlling Interests | 1,006,727 | 1,005,177 | - Net current assets increased from RMB 3.5382 billion as of December 31, 2024, to RMB 3.7993 billion as of June 30, 2025[91] Notes to the Condensed Consolidated Financial Statements Basis of Preparation The condensed consolidated financial statements are prepared in RMB, adhering to IAS 34 "Interim Financial Reporting" and Appendix 16 of the HKEX Listing Rules - The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" issued by the International Accounting Standards Board and the applicable disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[92] - The condensed consolidated financial statements are presented in RMB, and all amounts are rounded to the nearest thousand unless otherwise stated[92] Significant Accounting Policies The condensed consolidated financial statements are prepared on a historical cost basis, with certain financial instruments and digital assets measured at fair value, and new IFRS adoptions had no significant impact - Digital assets, primarily for routine business trading, are measured at fair value less costs to sell, with fair value changes recognized in profit or loss during the period of change[94][95] - During this interim period, the Group adopted all new and amended International Financial Reporting Standards relevant to its operations, but these did not result in significant changes to the Group's accounting policies, presentation of condensed consolidated financial statements, or reported amounts for the current and prior periods[96] Revenue and Segment Information The Group's business is segmented into Investment Banking, Investment Management, China Renaissance Securities, and Others, with Investment Management's performance including unrealized carried interest as a key value creation metric - The Group's reportable segments include Investment Banking, Investment Management, China Renaissance Securities, and Others[98] Revenue and Results by Reportable Segment (For the six months ended June 30, 2025) | Indicator | Investment Banking (RMB thousands) | Investment Management (RMB thousands) | China Renaissance Securities (RMB thousands) | Others (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | Transaction and Advisory Fees | 69,318 | — | 79,033 | — | 148,351 | | Management Fees | — | 107,758 | — | 460 | 108,218 | | Interest Income | — | — | 4,606 | 16,759 | 21,365 | | Carried Interest Income | — | 147,208 | — | — | 147,208 | | Total Revenue | 69,318 | 254,966 | 83,639 | 17,219 | 425,142 | | Net Investment (Loss)/Income | — | (17,502) | 45,171 | 3,596 | 31,265 | | Total Revenue and Net Investment Income | 69,318 | 237,464 | 128,810 | 20,815 | 456,407 | | Operating (Loss)/Profit | (29,899) | 139,018 | (17,126) | (16,163) | 75,830 | - Carried interest income is a form of variable consideration in investment management service contracts with clients, earned based on fund performance and realized after reaching a minimum income threshold[101] - The Investment Management segment's performance includes unrealized carried interest income (calculated on a liquidation basis) as a key metric for measuring value creation[102] Geographical Distribution of Revenue and Non-current Assets (As of June 30, 2025) | Region | 2025 Revenue (RMB thousands) | 2024 Revenue (RMB thousands) | 2025 Non-current Assets (RMB thousands) | 2024 Non-current Assets (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Mainland China | 311,833 | 263,203 | 100,048 | 141,873 | | Hong Kong | 34,093 | 59,597 | 19,011 | 6,940 | | United States | 79,216 | 6,121 | 1,096 | 1,626 | | Total | 425,142 | 328,921 | 120,155 | 150,439 | Net Investment Income Net investment income for the six months ended June 30, 2025, was RMB 31.265 million, mainly from fair value gains on financial assets, partially offset by losses on financial bonds and unlisted investment funds Net Investment Income Details (For the six months ended June 30) | Source | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Realized and Unrealized Net Gains/(Losses) on Financial Assets at Fair Value Through Profit or Loss ("FVTPL") | | | | — Wealth management related products | 3,681 | (6,076) | | — Asset management schemes | 43,788 | 79,192 | | — Financial bonds | (6,215) | (17,307) | | — Unlisted investment funds | (13,396) | (1,102) | | Realized and Unrealized Net Gains on Digital Assets at Fair Value | 13 | — | | Dividend Income | 805 | 556 | | Total | 31,265 | 30,606 | Other Income, Gains or Losses Total other income, gains or losses for the six months ended June 30, 2025, amounted to RMB 13.035 million, mainly from government grants (RMB 8.557 million) and exchange gains (RMB 1.25 million) Other Income, Gains or Losses Details (For the six months ended June 30) | Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Government Grants | 8,557 | 3,520 | | Net Exchange Gains/(Losses) | 1,250 | (1,295) | | Others | 3,228 | (1,706) | | Total | 13,035 | 519 | Investment Income from Certain Incidental and Ancillary Investments Investment income from incidental and ancillary investments was RMB 9.148 million, primarily from unlisted debt securities, partially offset by losses from listed equity securities Investment Income from Certain Incidental and Ancillary Investments (For the six months ended June 30) | Investment Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Unlisted Debt Securities Investments | 15,928 | 13,117 | | Listed Equity Securities Investments | (6,780) | — | | Total | 9,148 | 13,117 | Income Tax Expense Income tax expense for the six months ended June 30, 2025, was RMB 31.991 million, a significant increase driven by higher taxable income Income Tax Expense Details (For the six months ended June 30) | Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current Tax - Mainland China | 26,748 | 23,817 | | Deferred Tax | 5,243 | (11,469) | | Total Income Tax Expense | 31,991 | 12,348 | Profit/Loss for the Period Profit for the period was RMB 66.022 million, after accounting for depreciation, amortization, and staff costs, including share-based payment expenses Major Deductions from Profit/Loss for the Period (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Depreciation of Property and Equipment | 15,966 | 28,222 | | Amortization of Intangible Assets | 12,094 | 14,009 | | Staff Costs - Salaries, Bonuses and Other Allowances | 170,795 | 216,774 | | Staff Costs - Equity-settled Share-based Payment Expenses | 14,037 | 28,308 | Dividends The company did not declare or pay any dividends for the six months ended June 30, 2025, or 2024 - For the six months ended June 30, 2025, and 2024, the company did not declare or pay any dividends[114] Earnings/Loss Per Share Basic earnings per share attributable to owners was RMB 0.13, and diluted earnings per share was RMB 0.12, both turning profitable from prior-year losses Earnings/Loss Per Share (For the six months ended June 30) | Indicator | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Basic Earnings/(Loss) Per Share | 0.13 | (0.15) | | Diluted Earnings/(Loss) Per Share | 0.12 | (0.15) | Investments in Associates As of June 30, 2025, the Group's investments in associates (primarily fund investments) had a fair value of RMB 1.0357 billion, a slight decrease from 2024 year-end Investments in Associates (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of Fund Investments | 787,047 | 809,162 | | Fair Value Changes of Funds | 179,673 | 177,917 | | Exchange Adjustments | 68,994 | 70,731 | | Total | 1,035,714 | 1,057,810 | Investments in Joint Ventures As of June 30, 2025, the Group's investments in joint ventures totaled RMB 41.167 million, a slight decrease from 2024 year-end Investments in Joint Ventures (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of Unlisted Investments in Joint Ventures | 100,000 | 100,000 | | Less: Impairment Loss | (58,819) | (58,819) | | Exchange Adjustments | (14) | 622 | | Total | 41,167 | 41,803 | Financial Assets at Fair Value Through Profit or Loss Total financial assets at fair value through profit or loss amounted to RMB 5.1549 billion, comprising RMB 2.9349 billion in current assets and RMB 2.2199 billion in non-current assets, including listed financial bonds and various unlisted investments Financial Assets at Fair Value Through Profit or Loss (As of June 30, 2025) | Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Current Assets | | | | Unlisted Cash Management Products | 447,998 | 290,130 | | Money Market Funds | 241,255 | 264,412 | | Listed Financial Bonds | 2,209,401 | 2,453,954 | | Trust Products | 36,270 | — | | Subtotal | 2,934,924 | 3,008,496 | | Non-current Assets | | | | Unlisted Investment Funds | 569,221 | 604,134 | | Unlisted Debt Securities Investments | 1,039,564 | 1,272,048 | | Unlisted Equity Securities Investments | 56,132 | 56,155 | | Listed Equity Securities Investments | 173,029 | — | | Options to Acquire Non-controlling Interests | 282,032 | 282,032 | | Subtotal | 2,119,978 | 2,214,369 | | Total | 5,054,902 | 5,222,865 | Financial Assets at Fair Value Through Other Comprehensive Income As of June 30, 2025, the Group had no financial assets at fair value through other comprehensive income, a category that held RMB 48.688 million in listed financial bonds at 2024 year-end Financial Assets at Fair Value Through Other Comprehensive Income (As of June 30, 2025) | Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Listed Financial Bonds | — | 48,688 | Loans to Third Parties Net loans to third parties totaled RMB 100.9 million, primarily a loan to Worb Medical Holdings Limited, which was settled post-reporting period Loans to Third Parties (As of June 30, 2025) | Borrower | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Worb Medical Holdings Limited ("Worb") | 177,325 | 212,978 | | Less: Provision for Impairment Loss | (76,389) | (144,144) | | Net Amount | 100,936 | 68,834 | - The loan to Worb Medical Holdings Limited was settled after the six months ended June 30, 2025[125] Digital Assets As of June 30, 2025, the Group held RMB 78.728 million in digital assets, mainly stablecoins, deposited on third-party trading platforms Digital Assets (As of June 30, 2025) | Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Digital Assets | 78,728 | — | - Most of the Group's digital assets are stablecoins, which are asset-backed, with a fair value of approximately USD 1 per unit[128] Trade and Other Receivables Net trade and other receivables decreased to RMB 488.9 million from RMB 759.8 million at 2024 year-end, primarily comprising receivables from unsettled transactions and refundable deposits Trade and Other Receivables (As of June 30, 2025) | Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade Receivables | 39,347 | 55,424 | | Receivables from Unsettled Transactions | 194,518 | 380,416 | | Refundable Deposits | 117,001 | 187,765 | | Restricted Funds | 78,458 | 78,768 | | Employee Loans | 32,442 | 27,348 | | Total (net of impairment) | 488,859 | 759,806 | Financial Assets Purchased Under Resale Agreements As of June 30, 2025, the Group had no financial assets purchased under resale agreements, a category that held RMB 19 million in debt securities at 2024 year-end Financial Assets Purchased Under Resale Agreements (As of June 30, 2025) | Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Debt Securities | — | 19,000 | Impairment Assessment of Financial Assets Under Expected Credit Loss Model The Group's impairment assessment of financial assets under the expected credit loss model resulted in a RMB 56.109 million reversal of impairment loss, mainly from loans to third parties Reversal/Recognition of Impairment Loss (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Loans to Third Parties | (57,297) | — | | Trade and Other Receivables | 178 | 920 | | Amounts Due from Related Parties | 1,018 | 4,981 | | Total | (56,109) | 5,899 | Trade and Other Payables Total trade and other payables decreased to RMB 511.5 million from RMB 773.2 million at 2024 year-end, mainly comprising payables for unsettled transactions and carried interest to management teams Trade and Other Payables (As of June 30, 2025) | Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Salaries, Bonuses and Other Benefits Payable | 37,290 | 38,183 | | Payables for Unsettled Transactions | 266,232 | 499,537 | | Carried Interest to Management Team and Other Parties | 110,218 | 113,801 | | Total | 511,504 | 773,192 | Financial Assets Sold Under Repurchase Agreements Financial assets sold under repurchase agreements decreased to RMB 369.6 million from RMB 594.1 million at 2024 year-end, representing liabilities from securities sales with repurchase agreements Financial Assets Sold Under Repurchase Agreements (As of June 30, 2025) | Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Debt Securities | 369,600 | 592,521 | | Interest Payable | 49 | 1,574 | | Total | 369,649 | 594,095 | Structured Notes As of June 30, 2025, the Group held RMB 100.4 million in structured notes, with annual interest rates ranging from 2.50% to 2.70% Structured Notes (As of June 30, 2025) | Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Structured Notes | 100,396 | — | Share Capital As of June 30, 2025, the company's issued and fully paid share capital comprised 572,197,776 shares with a par value of USD 0.000025 per share, totaling RMB 93.834 thousand Share Capital Information (As of June 30, 2025) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of Issued and Fully Paid Shares | 572,197,776 | 572,197,776 | | Par Value Per Share | USD 0.000025 | USD 0.000025 | | Share Capital (RMB thousands) | 94 | 94 | Contingent Liabilities Mr. Bao Fan, former Chairman, is cooperating with Chinese authorities' investigations, with RMB 78.458 million in restricted funds paid by the Group, and no provision made due to event uncertainty - Mr. Bao Fan, the company's former Chairman of the Board, is cooperating with investigations by relevant Chinese authorities[139] - The Group has paid approximately RMB 78.458 million in restricted funds related to this matter[139] - Due to the uncertainty of these events, no provision has been made for them for the six months ended June 30, 2025[140]