赤子城科技(09911) - 2025 - 中期业绩

Executive Summary Financial Highlights The company achieved strong financial growth in H1 2025, with customer contract revenue up 40.0% to RMB 3.18 billion and profit attributable to equity holders surging 117.8% to RMB 489 million | Metric | 2025 (RMB million) | 2024 (RMB million) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Customer Contract Revenue | 3,181.3 | 2,271.9 | 40.0% | | Gross Profit | 1,775.1 | 1,141.0 | 55.6% | | Profit for the Period | 506.9 | 387.6 | 30.8% | | Profit Attributable to Equity Holders | 489.3 | 224.7 | 117.8% | | Adjusted EBITDA | 645.7 | 448.5 | 44.0% | Business Summary Both social and innovation businesses performed well, with social revenue reaching RMB 2.83 billion and innovation revenue RMB 347 million, growing 37.0% and 70.5% respectively | Business Segment | Revenue (RMB million) | Year-on-Year Growth | | :--- | :--- | :--- | | Social Business | 2,834 | 37.0% | | Innovation Business | 347 | 70.5% | - Core products in the Middle East and North Africa market saw business scale increase by over 60% year-on-year[9] - Establishment of Hong Kong global headquarters strengthens the globalization strategy[10] Chairman's Report Overall Performance and Strategic Milestones The Chairman's report highlights H1 2025 as a period of solid business foundation, with significant revenue and profit growth across social and innovation segments - Total revenue reached RMB 3.18 billion, a 40.0% year-on-year increase; profit attributable to equity holders reached RMB 489 million, up 117.8% year-on-year[11] - Establishment of Hong Kong global headquarters marks a new stage in the globalization strategy[12] - Organizational structure upgrade initiated, centralizing underlying capabilities like product, R&D, operations, and growth to enhance refined management and resource allocation efficiency[12] Corporate Social Responsibility The company actively fulfills its corporate social responsibility through donations in the Middle East and Southeast Asia, and global youth protection initiatives - Donated supplies and funds to local orphanages during Ramadan in the Middle East[13] - Collaborated with local creators in Southeast Asia to donate food and funds to charity schools for children in need[13] - Continuously promotes the "Baby Pig Youth Protection Program" globally, focusing on the healthy growth of children and adolescents worldwide[13] Performance Review Pan-population Social Business Pan-population social business achieved solid growth in H1 2025, with platforms like SUGO and TopTop seeing over 100% revenue and profit growth, enhanced by AI technology - SUGO revenue increased by over 100%, with profit growing by over 150%[14] - TopTop revenue increased by over 100% year-on-year, with profit growing by over 100%[14] - SUGO ranked 7th in social networking app revenue in the Middle East, and TopTop ranked 10th in Google Play game app rankings[14] - Self-developed multimodal algorithm model Boomiix continues to upgrade, enhancing product social matching efficiency and intelligent operations[15] Diverse-population Social Business Diverse-population social business maintained healthy growth in H1 2025, expanding HeeSay's brand influence in key markets and leveraging AI for improved user experience and efficiency - HeeSay's brand influence further expanded in core markets like Southeast Asia, with HeeSay GALA held in Thailand and the Philippines in January 2025[17] - AI technology applied to recommendation systems, operational intelligence, and risk control strategies, enhancing user social experience and commercial efficiency[17] - HeeSay ranked 16th in Google Play's social app revenue list in the Southeast Asian market[17] Innovation Business Innovation business established a clear second growth curve in H1 2025, with premium games entering profitability, social e-commerce growing over 100%, and new AI content communities launched - Premium game business officially entered the profitability recovery period, with flagship game "Alice's Dream: Merge Games" entering long-term operation[18] - Deep application of AI significantly shortened game R&D cycles, improving user retention and ARPU performance[18] - Social e-commerce "Hormone Health" profit increased by over 100% year-on-year, solidifying its leading position in the health service niche market[19] - Launched AI creative content community Aippy, entering the AI Agent and AI content community sectors[19] Strategy and Outlook Deepening Social Product Portfolio Diversification and Market Layout The company will diversify its social product portfolio, strengthen market presence in MENA, expand into new markets, and leverage organizational upgrades and AI technology for growth - The global social application market is projected to exceed USD 310.37 billion by 2030[20] - Continuously consolidate the leading positions of products like MICO, YoHo, SUGO, TopTop, and HeeSay in their respective vertical segments, and develop more products with monthly revenue exceeding tens of millions of US dollars[20] - Continue to firmly invest and exert efforts in the Middle East and North Africa market, consolidate its leading position, and actively expand into new markets to complete the global layout[20] - Rely on the organizational upgrade initiated in H1 2025 to further enhance resource coordination efficiency and response speed, and deepen AI technology empowerment across the entire process[21] Continuing to Advance Innovation Business, Consolidating Second Growth Curve The company will advance its innovation business in H2 2025, focusing on long-term operation of premium games, expanding social e-commerce, and exploring AI+ social entertainment products - Adhere to the "premium game" strategy, continuously enhance long-term game operation capabilities, focus on the merge-puzzle casual game segment, and actively plan new product launches through "product replication"[22] - Social e-commerce business will deeply cultivate the HIV prevention and sexual health service fields, upgrading services and expanding categories based on user needs[22] - Continuously explore "AI+social entertainment" innovative products, leveraging new products like Aippy to seize new opportunities in the emotional value track in the AI era[22] Deepening AI Application, Exploring Technology Opportunities The company will deepen AI integration across business scenarios, upgrade its AI platform, and invest in AI+ social/entertainment/gaming products to capture new market opportunities - Continuously upgrade the AI middle platform, implementing AI efficiency systems for different business needs, assisting existing products in achieving more precise social matching, content recommendations, efficient risk control audits, ecological operations, user identification, and marketing acquisition[23] - Increase investment in AI, actively deploying innovative products in areas such as "AI+social," "AI+entertainment," and "AI+gaming"[23] - Believes that the global emotional value track is ushering in new breakthroughs, and AI technology will comprehensively enhance productivity, bringing greater commercialization and profit potential[23] Financial Review Revenue In H1 2025, customer contract revenue reached RMB 3.18 billion, up 40.0%, driven by strong growth in both social (37.0%) and innovation (70.5%) businesses | Business Segment | 2025 (RMB thousand) | Proportion | 2024 (RMB thousand) | Proportion | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Social Business | 2,834,334 | 89.1% | 2,068,453 | 91.0% | 37.0% | | Innovation Business | 346,931 | 10.9% | 203,472 | 9.0% | 70.5% | | Total | 3,181,265 | 100.0% | 2,271,925 | 100.0% | 40.0% | - Social business growth primarily attributed to deeper user demand insights, intensified local operations, diversified product portfolio, active new market expansion, and enhanced commercial efficiency through AI technology iteration of recommendation systems[24] - Innovation business growth mainly benefited from the steady development of traffic monetization, social e-commerce, and contributions from premium games[25] Cost of Revenue In H1 2025, cost of revenue increased by 24.3% to RMB 1.41 billion, primarily due to higher revenue sharing, share-based payments, and employee benefits in the social business | Metric | 2025 (RMB thousand) | Proportion | 2024 (RMB thousand) | Proportion | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Live Streamer and Channel Revenue Sharing | 903,660 | 28.4% | 787,258 | 34.7% | 14.8% | | Employee Benefit Expenses | 179,316 | 5.6% | 132,888 | 5.8% | 34.9% | | Share-based Payment Expenses | 112,985 | 3.6% | 20,776 | 0.9% | 443.8% | | Total | 1,406,145 | 44.2% | 1,130,894 | 49.8% | 24.3% | - Social business cost of revenue increased by 26.4%, mainly due to increased live streamer and channel revenue sharing, share-based payment expenses, and employee benefit expenses[26] - Innovation business cost of revenue saw a marginal increase of 0.3%[27] Gross Profit and Gross Margin In H1 2025, gross profit increased by 55.6% to RMB 1.78 billion, with gross margin rising to 55.8%, driven by improved efficiency and strong performance in both segments | Business Segment | 2025 Gross Profit (RMB thousand) | 2025 Gross Margin | 2024 Gross Profit (RMB thousand) | 2024 Gross Margin | Gross Profit Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Social Business | 1,519,437 | 53.6% | 1,028,565 | 49.7% | 47.7% | | Innovation Business | 255,683 | 73.7% | 112,466 | 55.3% | 127.3% | | Total | 1,775,120 | 55.8% | 1,141,031 | 50.2% | 55.6% | - The increase in social business gross margin is primarily due to optimized resource allocation and improved operating efficiency through organizational structure upgrades and refined management of core businesses[29] - The increase in innovation business gross margin is mainly attributed to the steady development of traffic monetization, social e-commerce businesses, and contributions from premium games[29] Operating Expenses In H1 2025, selling and marketing expenses surged 108.0% to RMB 1.00 billion, while R&D and G&A expenses saw modest increases, mainly due to higher employee benefits Selling and Marketing Expenses - Selling and marketing expenses were RMB 1.00 billion, an increase of 108.0% from RMB 482 million in H1 2024[30] - This increase was primarily due to intensified efforts in promoting social businesses[30] Research and Development Expenses - Research and development expenses were RMB 168 million, an increase of 2.3% from RMB 164 million in H1 2024[31] - This was mainly due to an increase in employee benefit expenses[31] General and Administrative Expenses - General and administrative expenses were RMB 122 million, an increase of 15.2% from RMB 106 million in H1 2024[32] - This was mainly due to an increase in employee benefit expenses[32] Operating Profit and Net Profit Operating profit increased by 30.8% to RMB 479 million in H1 2025, driven by gross profit growth partially offset by higher selling and marketing expenses, with net profit also up 30.8% - Operating profit was RMB 479 million, an increase of 30.8% from RMB 367 million in H1 2024[33] - The increase in operating profit was primarily due to a RMB 634 million increase in gross profit, partially offset by a RMB 520 million increase in selling and marketing expenses[33] - Net finance income increased to RMB 26.4 million, up from RMB 18.2 million in H1 2024, mainly due to increased interest income from bank deposits[34] - Profit for the period was RMB 507 million, an increase of 30.8% from RMB 388 million in H1 2024[36] Non-IFRS Measures Adjusted EBITDA, a non-IFRS measure, increased by 44.0% to RMB 646 million in H1 2025, providing a clearer view of core business performance by excluding non-operating items | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Operating Profit | 479,385 | 366,585 | 30.8% | | Add: Share-based Payment Expenses | 122,959 | 33,377 | 268.4% | | Add: Depreciation and Amortization | 43,382 | 48,502 | -10.6% | | Adjusted EBITDA | 645,726 | 448,464 | 44.0% | - Adjusted EBITDA is defined as adjusted operating profit, with adjustments including share-based payment expenses, depreciation, and amortization[38] Financial Position and Cash Flow Capital Structure As of June 30, 2025, total assets increased to RMB 3.89 billion, total liabilities decreased to RMB 1.76 billion, and the asset-liability ratio improved to 45.2%, indicating a more robust financial position - Total assets increased from RMB 3,583.0 million as of December 31, 2024, to RMB 3,889.7 million as of June 30, 2025[40] - Total liabilities decreased from RMB 1,928.1 million as of December 31, 2024, to RMB 1,759.1 million as of June 30, 2025[40] - The asset-liability ratio decreased from 53.8% as of December 31, 2024, to 45.2% as of June 30, 2025[40] Financial Resources and Operating Cash Flow As of June 30, 2025, cash and cash equivalents increased to RMB 2.22 billion, with net cash inflow from operating activities significantly rising to RMB 539 million - As of June 30, 2025, cash and cash equivalents were RMB 2,215.9 million, compared to RMB 2,048.6 million as of December 31, 2024[41] - Net cash inflow from operating activities for the six months ended June 30, 2025, increased to RMB 539.4 million, compared to RMB 358.7 million for the six months ended June 30, 2024[41] Other Financial Items The company invests surplus cash in low-risk financial products, with financial assets at fair value decreasing to RMB 154 million due to redemptions, and plans strategic investments for synergy - As of June 30, 2025, financial assets measured at fair value decreased to RMB 153.5 million, primarily due to the redemption of wealth management products[42] - Capital expenditure for the six months ended June 30, 2025, was RMB 5.3 million, an increase of RMB 0.7 million compared to RMB 4.6 million for the six months ended June 30, 2024[43] - Plans to undertake strategic investments or acquisitions to create synergistic effects among its businesses[46] - As of June 30, 2025, the company had no assets pledged and no significant contingent liabilities[45][47] Risks and Uncertainties Key Business Risks The company faces significant business risks including intense competition, inability to innovate, mobile internet stagnation, content liability, data privacy breaches, and cybersecurity vulnerabilities - Faces intense competition in a rapidly developing industry, potentially unable to maintain R&D innovation or successfully compete with existing and future competitors[50] - If the mobile internet industry fails to continue its development, profitability and prospects may be materially and adversely affected[50] - May be held liable for information or content displayed, published, or linked on mobile applications, potentially leading to user loss and reputational damage[50] - Misappropriation or misuse of private data and non-compliance with data protection laws and regulations may result in claims, fines, increased operating costs, or a reduction in users and customers[50] - Failure to prevent security breaches, cyberattacks, or other unauthorized access to systems or user data could lead to severe consequences[50] Foreign Exchange Risk and Post-reporting Period Events The company is exposed to foreign exchange risks from USD and HKD denominated transactions but did not hedge during H1 2025, with no significant post-reporting period events to disclose - Operates international businesses, with major receipts and payments denominated in US dollars, exposing it to foreign exchange risks arising from currencies such as the US dollar and Hong Kong dollar[48] - For the six months ended June 30, 2025, the company did not hedge any foreign exchange fluctuations[48] - The Group had no significant events requiring disclosure after the reporting period[49] Other Information Share Transactions No listed securities were bought, sold, or redeemed by the company in H1 2025, though Three D Partners Limited purchased 40.34 million shares under a restricted share unit award scheme - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[51] | Metric | Value | | :--- | :--- | | Total Shares Purchased | 40,338,000 shares | | Percentage of Total Issued Shares Purchased | Approximately 2.86% | | Average Consideration Per Share | Approximately HKD 4.29 | | Total Consideration for Shares Purchased | Approximately HKD 173,227,130 | Employees and Remuneration As of June 30, 2025, the company had 1,742 full-time employees, with 55.74% in R&D, and maintains competitive recruitment, benefits, and performance-based remuneration policies - As of June 30, 2025, the company had a total of 1,742 full-time employees, of whom 971 (55.74% of the total full-time employees) were engaged in research and development activities[53] - A systematic recruitment process is in place, offering competitive benefits and training opportunities[53] - Employee salaries are determined with reference to market conditions and individual employee performance, qualifications, and experience, with performance bonuses and share awards decided based on evaluation ratings[53] Corporate Governance Audit Committee The company has established an Audit Committee in accordance with the Corporate Governance Code, comprising three independent non-executive directors, with Mr. Chi Shujin as Chairman - An Audit Committee has been established in accordance with the Corporate Governance Code, consisting of three independent non-executive directors, with Mr. Chi Shujin as Chairman[54] Compliance with Corporate Governance Code The company adheres to a rigorous corporate governance framework, complying with the Listing Rules' Corporate Governance Code throughout the reporting period, with a board composition ensuring independence - The company has adopted the Corporate Governance Code set out in Appendix C1 to the Listing Rules and has complied with the principles and code provisions therein during the reporting period[55][56] - The Board currently comprises four executive directors and three independent non-executive directors, ensuring a considerable degree of independence in its composition[55] Compliance with Model Code for Securities Transactions by Directors The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance during the reporting period - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules[57] - Each director has confirmed, following specific enquiry, that they have complied with the required standards set out in the Model Code during the reporting period[57] Interim Dividend Dividend Decision The Board of Directors has resolved not to declare an interim dividend for the six months ended June 30, 2025 - The Board of Directors has resolved not to declare an interim dividend for the six months ended June 30, 2025[58] Financial Statements Interim Condensed Consolidated Statement of Comprehensive Income The unaudited interim condensed consolidated statement of comprehensive income for H1 2025 shows customer contract revenue of RMB 3.18 billion, profit for the period of RMB 507 million, and basic earnings per share of RMB 0.39 | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Customer Contract Revenue | 3,181,265 | 2,271,925 | | Gross Profit | 1,775,120 | 1,141,031 | | Operating Profit | 479,385 | 366,585 | | Profit for the Period | 506,931 | 387,618 | | Profit Attributable to Equity Holders | 489,283 | 224,676 | | Basic Earnings Per Share (RMB) | 0.39 | 0.20 | | Diluted Earnings Per Share (RMB) | 0.38 | 0.20 | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, the consolidated statement of financial position reports total assets of RMB 3.89 billion, total liabilities of RMB 1.76 billion, and total equity of RMB 2.13 billion | Metric | 2025 June 30 (RMB thousand) | 2024 December 31 (RMB thousand) | | :--- | :--- | :--- | | Total Non-current Assets | 858,440 | 767,897 | | Total Current Assets | 3,031,268 | 2,815,091 | | Total Assets | 3,889,708 | 3,582,988 | | Total Current Liabilities | 1,319,181 | 1,498,147 | | Total Non-current Liabilities | 439,911 | 429,956 | | Total Liabilities | 1,759,092 | 1,928,103 | | Total Equity | 2,130,616 | 1,654,885 | Interim Condensed Consolidated Statement of Changes in Equity For H1 2025, total equity increased from RMB 1.66 billion to RMB 2.13 billion, with equity attributable to equity holders rising from RMB 1.54 billion to RMB 2.00 billion, influenced by profit and share-based payments | Metric | 2025 January 1 (RMB thousand) | 2025 June 30 (RMB thousand) | | :--- | :--- | :--- | | Equity Attributable to Equity Holders of the Company | 1,541,123 | 1,998,443 | | Non-controlling Interests | 113,762 | 132,173 | | Total Equity | 1,654,885 | 2,130,616 | - Profit attributable to equity holders of the company was RMB 489,283 thousand, share-based payment expenses were RMB 122,132 thousand, and repurchase of own shares was RMB (160,305) thousand[69] Interim Condensed Consolidated Statement of Cash Flows For H1 2025, net cash inflow from operating activities significantly increased to RMB 539 million, with cash and cash equivalents reaching RMB 2.22 billion at period-end, despite net cash outflows from investing and financing activities | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Cash Inflow from Operating Activities | 539,376 | 358,718 | | Net Cash Outflow from Investing Activities | (36,674) | (119,126) | | Net Cash Outflow from Financing Activities | (329,625) | (134,230) | | Cash and Cash Equivalents at End of Period | 2,215,699 | 1,489,113 | - Net cash outflow from financing activities primarily included repurchase of own shares of RMB (160,305) thousand and payments to non-controlling interests of RMB (157,178) thousand[70] Notes to Unaudited Interim Financial Information General Information Babypig Technology Co., Ltd., an investment holding company incorporated in Cayman Islands in 2018, primarily engages in social and innovation businesses, and acquired full ownership of NBT Social Networking Inc. in December 2024 - Babypig Technology Co., Ltd. was incorporated in the Cayman Islands on September 12, 2018, primarily engaging in social and innovation businesses[71] - In December 2024, the company completed the acquisition of a 38.92% non-controlling interest in NBT Social Networking Inc., making it a wholly-owned subsidiary of the company[73] Basis of Preparation and Accounting Policy Changes The interim financial information is prepared according to HKEX Listing Rules and IAS 34, reviewed by KPMG, and reflects no material impact from IAS 21 amendments, with no new standards adopted - This interim financial information is prepared in accordance with the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and IAS 34 "Interim Financial Reporting" issued by the IASB[74] - The interim financial information is unaudited but has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[74] - The Group has applied the IAS 21 amendments to the interim financial report for the current accounting period, but it has no material impact on this interim report[75] Segment Information The Group's business activities are reviewed by key operating decision-makers and segmented into social and innovation businesses, with performance assessed based on gross profit - The Group's business activities are regularly reviewed and assessed by the chief operating decision-maker, and are divided into social business and innovation business segments based on revenue sources[77] - The chief operating decision-maker assesses the performance of operating segments based on gross profit[77] | Business Segment | Revenue (RMB thousand) | Cost of Revenue (RMB thousand) | Gross Profit (RMB thousand) | | :--- | :--- | :--- | :--- | | Social Business | 2,834,334 | (1,314,897) | 1,519,437 | | Innovation Business | 346,931 | (91,248) | 255,683 | Expenses by Nature In H1 2025, total expenses reached RMB 2.70 billion, with significant increases in promotion and marketing, revenue sharing, employee benefits, and share-based payment expenses | Expense Type | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Promotion and Marketing Expenses | 941,615 | 439,475 | | Live Streamer and Channel Revenue Sharing | 903,660 | 787,258 | | Employee Benefit Expenses | 471,118 | 389,165 | | Share-based Payment Expenses | 122,959 | 33,377 | | Total | 2,697,215 | 1,882,213 | Income Tax Credit In H1 2025, the company recorded an income tax credit of RMB 0.4 million, primarily comprising current tax of RMB 2.89 million and deferred tax changes of RMB (3.33) million | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current Tax | 2,889 | 915 | | Deferred Income Tax | (3,329) | (3,856) | | Income Tax Credit | (440) | (2,941) | Earnings Per Share In H1 2025, basic earnings per share significantly increased to RMB 0.39, and diluted earnings per share to RMB 0.38, reflecting improved profitability | Metric | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Basic Earnings Per Share | 0.39 | 0.20 | | Diluted Earnings Per Share | 0.38 | 0.20 | - Basic earnings per share are calculated based on profit attributable to equity holders of the company of RMB 489,283,000 divided by the weighted average number of ordinary shares outstanding during the period of 1,267,962,302 shares[81] - Diluted earnings per share are calculated by dividing the profit attributable to owners of the company of RMB 489,283,000 by the weighted average number of ordinary shares outstanding during the period of 1,305,767,865 shares, assuming the exercise of all potentially dilutive ordinary shares[83] Dividends No dividends were paid or declared by the company for the six months ended June 30, 2025, consistent with the prior corresponding period - For the six months ended June 30, 2025, the company did not pay or declare any dividends (for the six months ended June 30, 2024: nil)[84] Trade Receivables As of June 30, 2025, total trade receivables increased to RMB 409 million, with the majority (RMB 413 million) being less than 6 months old, and an impairment provision of RMB 51.95 million | Aging | 2025 June 30 (RMB thousand) | 2024 December 31 (RMB thousand) | | :--- | :--- | :--- | | Within 6 months | 412,514 | 341,833 | | 6 months to 1 year | 5,466 | 1,179 | | 1 to 2 years | 1,670 | 10,393 | | 2 to 3 years | 3,954 | 3,823 | | Over 3 years | 36,870 | 34,041 | | Gross Carrying Amount | 460,474 | 391,269 | | Less: Impairment Provision | (51,948) | (49,370) | | Total Trade Receivables | 408,526 | 341,899 | Trade Payables As of June 30, 2025, total trade payables increased to RMB 424 million, with the vast majority (RMB 416 million) due within one year, and typically settled within that period | Aging | 2025 June 30 (RMB thousand) | 2024 December 31 (RMB thousand) | | :--- | :--- | :--- | | Within 1 year | 415,944 | 373,081 | | 1 to 2 years | 94 | 741 | | Over 2 years | 8,265 | 8,735 | | Total | 424,303 | 382,557 | - Trade payables are normally settled within one year[86] Definitions and Acknowledgement Definitions This section provides definitions for key terms used in the announcement, such as AIGC, ARPU, and IFRS, ensuring consistent understanding for readers - Provides the meanings of key terms such as AIGC, ARPU, and International Financial Reporting Standards[87][88] Acknowledgement Chairman Liu Chunhe extends gratitude to the Group's management, employees, regulators, shareholders, and customers for their contributions and support, with a forward-looking statement disclaimer - Chairman Liu Chunhe, on behalf of the Board, extends gratitude to the Group's management and employees, regulatory bodies, shareholders, and customers[89] - This announcement contains forward-looking statements regarding the Group's business outlook, financial performance estimates, projected business plans, and development strategies, with a caution that such statements involve numerous risks and uncertainties[90]