家乡互动(03798) - 2025 - 中期业绩

Interim Results Announcement Financial Highlights The company reported a 13.1% decrease in revenue and a 22.9% decrease in gross profit, but a significant 58.8% increase in profit for the period and a 78.3% increase in non-IFRS adjusted net profit for the six months ended June 30, 2025 Financial Highlights for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 726,044 | 835,659 | (13.1) | | Gross Profit | 318,352 | 412,968 | (22.9) | | Profit for the Period | 53,469 | 33,670 | 58.8 | | Non-IFRS Adjusted Net Profit Attributable to Owners of the Company | 74,902 | 42,002 | Not Applicable | - Non-IFRS adjusted net profit is primarily adjusted for share-based payment expenses, share of losses (profits) of associates and joint ventures, and impairment losses recognized on loan receivables under the expected credit loss model[3] Revenue by Virtual Product Type For the six months ended June 30, 2025, revenue from self-developed mobile games decreased by 30.6%, while third-party mobile game revenue surged by 123.4% and advertising revenue grew by 21.6%, resulting in an overall revenue decline of 13.1% Revenue by Virtual Product Type (For the Six Months Ended June 30) | Revenue Source | 2025 (RMB thousand) | % of Total Revenue | 2024 (RMB thousand) | % of Total Revenue | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Self-developed Mobile Games | 505,256 | 69.6 | 727,599 | 87.1 | (30.6) | | Third-party Mobile Games | 196,141 | 27.0 | 87,799 | 10.5 | 123.4 | | Total Mobile Game Revenue | 701,397 | 96.6 | 815,398 | 97.6 | (14.0) | | Advertising Revenue | 24,647 | 3.4 | 20,261 | 2.4 | 21.6 | | Total | 726,044 | 100.0 | 835,659 | 100.0 | (13.1) | - For the six months ended June 30, 2024, RMB34.2 million of revenue from self-developed mobile games was reclassified to third-party mobile game revenue to better reflect the Group's current situation[5] Operating Highlights As of June 30, 2025, Daily Active Users (DAUs) and average Monthly Active Users (MAUs) remained stable year-on-year, but the number of paying users significantly decreased, reflecting the short-term impact of commercialization strategy adjustments on light users' willingness to pay Key Operating Data (As of June 30) | Indicator | As of or For the Six Months Ended June 30, 2025 | As of or For the Six Months Ended June 30, 2024 | As of or For the Year Ended December 31, 2024 | | :--- | :--- | :--- | :--- | | Daily Active Users (DAUs) | 12,306,675 | 13,360,659 | 13,377,495 | | Paying Users | 9,089,428 | 15,691,516 | 17,756,141 | | Average Monthly Active Users (MAUs) | 59,781,933 | 65,697,381 | 64,342,667 | - DAUs refer to the number of daily active users on the last calendar day of any given period[8] - Paying users refer to players who have paid at least once to play the Company's mobile game products or purchased virtual tokens offered by the Company in its mobile game products during any given period[8] Business Overview and Outlook During the reporting period, the Group continued to focus on advantageous segments, achieving significant growth in third-party co-operated game revenue and effective marketing cost control through product content iteration, commercialization model optimization, and refined operations, with future plans to deepen AI technology application, expand user base, strengthen product reserves, and broaden strategic alliances Business Review - Launched new seasonal mechanisms and themed visual versions, such as "Weile Fishing Thousand Cannons Edition" deeply integrating the Eastern fantasy theme of Shan Hai Jing[9] - "Weile Dou Dizhu" and "Weile Sichuan Mahjong" successfully launched on Douyin channel, consistently ranking among the top of Douyin's chess and card popularity list, achieving cross-platform user and brand growth[9] - Revenue from self-developed mobile games decreased year-on-year, primarily due to commercialization adjustments affecting the payment willingness of some light users[10] - Third-party mobile game revenue significantly increased by 123.4% to RMB196 million[10] - Selling and marketing expenses decreased by 50.8% year-on-year to RMB128.6 million[12] - Profit for the period increased by 58.8% year-on-year to RMB53.47 million; adjusted net profit was RMB74.9 million, indicating an overall improvement in profitability[12] - Accelerated overseas expansion, with overseas fishing products receiving enthusiastic user response in markets such as Vietnam, Hong Kong, Macau, Taiwan, and Indonesia, and multiple products expected to be launched globally within 2025[13] - Multi-modal AI intelligent agent has entered comprehensive internal testing and multi-business adaptation stages, initially achieving automated empowerment in key aspects such as user portrait analysis, intelligent customer service, and video content distribution[14] Strategies for H2 2025 - Deepen cutting-edge technology, self-develop multi-modal AI intelligent agents, and promote their integration into various business segments, accelerating the AI transformation of the entire R&D and operation process[15] - Penetrate regional markets, precisely meet localized entertainment demands in domestic second and third-tier markets and regions with lower user penetration rates, and formulate differentiated marketing strategies to expand the user base[16] - Strengthen product reserves, advance testing and launch of multiple reserve projects, accelerate the launch of overseas products, and build diversified revenue growth engines[17] - Expand strategic alliances, actively explore new business opportunities through incubation, investment, and acquisition[18] Management Discussion and Analysis Management discussed the financial performance and operating strategies for the reporting period, noting that revenue decline was mainly due to reduced self-developed game income, offset by significant growth in third-party games and advertising revenue, while effective cost control, particularly in selling and marketing and R&D expenses, drove substantial increases in profit for the period and adjusted net profit, with the company maintaining ample liquidity, no significant debt, and continued investment in AI technology and overseas market expansion Financial Review Revenue - Revenue primarily comprises income from virtual token sales for self-developed mobile games, third-party mobile games, and advertising[19] - For the six months ended June 30, 2025, total revenue was approximately RMB726.0 million, a 13.1% decrease from approximately RMB835.7 million in the same period of 2024[20] - The decrease in revenue was mainly due to a 30.6% year-on-year decline in self-developed mobile game revenue, affected by commercialization strategy adjustments impacting player payment willingness[20] Revenue Composition (For the Six Months Ended June 30) | Revenue Source | 2025 % Share | 2024 % Share | | :--- | :--- | :--- | | Sale of Virtual Tokens (Self-developed) | 69.6 | 87.1 | | Distribution of Third-party Mobile Games | 27.0 | 10.5 | | Advertising | 3.4 | 2.4 | Cost of Sales and Gross Profit - Cost of sales decreased by 3.5% from approximately RMB422.7 million in the same period of 2024 to approximately RMB407.7 million in the same period of 2025, primarily due to reduced revenue from self-developed mobile games[21] - Gross profit decreased by 22.9% from approximately RMB413.0 million in the same period of 2024 to approximately RMB318.4 million in the same period of 2025[22] - Gross profit margin decreased from 49.4% in the same period of 2024 to 43.8% in the same period of 2025, mainly due to increased new media costs and amortization of intangible assets[22] Other Income, Gains and Losses - Other income decreased by 46.0% from approximately RMB20.2 million in the same period of 2024 to approximately RMB13.8 million in the same period of 2025, primarily due to a decrease in interest income[23] - Other gains and losses changed from a gain of approximately RMB15.7 million in the same period of 2024 to a loss of approximately RMB3.3 million in the same period of 2025, a decrease of RMB18.9 million, mainly due to a loss of RMB10.4 million from derecognition of receivables upon disposal of an associate[24] Net Exchange Loss - A net exchange loss of approximately RMB2.2 million was recorded for the six months ended June 30, 2025, compared to a net exchange loss of approximately RMB0.7 million in the same period of 2024, primarily due to fluctuations in the USD exchange rate[25] Selling and Marketing Expenses - Selling and marketing expenses decreased by 50.8% from approximately RMB261.1 million in the same period of 2024 to approximately RMB128.6 million in the same period of 2025, primarily due to a sharp reduction in promotion and advertising expenses[26] Administrative and Other Expenses - Administrative and other expenses decreased by 17.6% from approximately RMB66.6 million in the same period of 2024 to approximately RMB60.4 million in the same period of 2025, primarily due to a decrease in professional service fees[27] Research and Development Expenses - Research and development expenses decreased by 38.5% from approximately RMB57.3 million in the same period of 2024 to approximately RMB35.2 million in the same period of 2025, primarily due to a decrease in R&D staff remuneration expenses[28] Profit Before Income Tax - Profit before income tax increased by 55.6% from approximately RMB40.3 million in the same period of 2024 to approximately RMB62.8 million in the same period of 2025[29] - The percentage of profit before income tax to total revenue increased from 4.8% in the same period of 2024 to 8.6% in the same period of 2025, primarily due to reduced selling and marketing expenses and R&D expenses[29] Income Tax Expense - Income tax expense increased by 39.7% from RMB6.7 million in the same period of 2024 to RMB9.3 million in the same period of 2025[30] - The effective tax rate decreased from 16.5% in the same period of 2024 to 14.8% in the same period of 2025, with the increase in income tax expense attributed to higher profit before tax[30] Profit Attributable to Owners of the Company - Profit attributable to owners of the Company increased by 33.5% from approximately RMB28.0 million in the same period of 2024 to approximately RMB37.4 million in the same period of 2025[31] Non-IFRS Measures – Adjusted Net Profit - Adjusted net profit aims to assess financial performance by excluding the impact of non-recurring and non-cash items such as share-based payment expenses, share of losses of associates and joint ventures, and impairment losses on loan receivables[32][33] Calculation of Adjusted Net Profit Attributable to Owners of the Company (For the Six Months Ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company | 37,395 | 28,009 | | Add: Share-based payment expenses | 3,646 | 13,993 | | Add: Share of losses of associates and joint ventures | 5,027 | — | | Add: Impairment losses recognized on loan receivables under expected credit loss model (net of income tax) | 28,834 | — | | Adjusted Net Profit Attributable to Owners of the Company | 74,902 | 42,002 | Liquidity and Capital Resources Cash and Cash Equivalents - The Group primarily funds its operations with cash generated from operating activities[35] - As of June 30, 2025, cash and cash equivalents were approximately RMB827.7 million, an increase from approximately RMB755.0 million as of December 31, 2024[36] - The Company currently has no foreign currency hedging policy, but the Board will monitor risks and consider hedging[36] Indebtedness and Gearing Ratio - As of the six months ended June 30, 2025, the Group had no short-term or long-term bank borrowings, except for lease liabilities of RMB15.8 million[37] - The gearing ratio was zero as of June 30, 2025, due to the absence of debt[38] Pledge of Assets - As of June 30, 2025, the Group had not pledged any assets[39] Capital Expenditure - Capital expenditure for the six months ended June 30, 2025, was approximately RMB58.3 million, a significant decrease from approximately RMB216 million in the same period of 2024[40] - The decrease in capital expenditure was mainly due to the Group's reduced expenditure on acquiring investments in associates[40] Contingent Liabilities and Guarantees - As of June 30, 2025, the Group had no unrecorded material contingent liabilities, guarantees, or any litigation against the Group[41] Material Acquisitions, Disposals and Future Plans for Major Investments - During the reporting period, the Group had no material acquisitions or disposals of subsidiaries, joint ventures, associates, or financial assets, nor any future plans for major investments or capital assets[42] Employees and Staff Costs - As of June 30, 2025, the Group had a total of 612 full-time employees, primarily located in mainland China[43] - Total staff costs for the six months ended June 30, 2025, were approximately RMB67.3 million, a decrease from approximately RMB99.8 million in the same period of 2024, mainly due to year-on-year reductions in salaries, other in-kind benefits, and share-based payment expenses[43] - The Board resolved to terminate the share option scheme on April 2, 2025, and adopted the 2025 share scheme on June 17, 2025[44] Condensed Consolidated Financial Statements This section presents the company's unaudited condensed consolidated statement of profit or loss and other comprehensive income, statement of financial position, statement of changes in equity, and statement of cash flows for the six months ended June 30, 2025, providing financial data reflecting operating results, financial position, and cash flow changes during the reporting period Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the Six Months Ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 726,044 | 835,659 | | Cost of sales | (407,692) | (422,691) | | Gross profit | 318,352 | 412,968 | | Other income | 13,837 | 20,203 | | Other gains and losses | (3,263) | 15,667 | | Net exchange loss | (2,198) | (683) | | Selling and marketing expenses | (128,556) | (261,129) | | Administrative and other expenses | (60,424) | (66,637) | | Research and development expenses | (35,224) | (57,253) | | Impairment losses under expected credit loss model | (34,275) | (6,285) | | Share of results of associates | (310) | (14,928) | | Share of results of joint ventures | (4,717) | (960) | | Interest on lease liabilities | (444) | (629) | | Profit before income tax | 62,778 | 40,334 | | Income tax expense | (9,309) | (6,664) | | Profit and total comprehensive income for the period | 53,469 | 33,670 | | Profit for the period attributable to owners of the Company | 37,395 | 28,009 | | Profit for the period attributable to non-controlling interests | 16,074 | 5,661 | | Basic earnings per share (RMB cents) | 3.05 | 2.23 | | Diluted earnings per share (RMB cents) | 3.05 | 2.23 | Condensed Consolidated Statement of Financial Position Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | | | | Property, plant and equipment | 54,979 | 64,813 | | Right-of-use assets | 14,771 | 20,512 | | Intangible assets | 18,265 | 33,807 | | Investments in associates | 52,015 | 54,920 | | Investments in joint ventures | 39,858 | 39,575 | | Financial assets at fair value through profit or loss | 26,766 | 31,243 | | Equity instruments at fair value through other comprehensive income | 33,439 | 33,439 | | Non-current other receivables and deposits | 8,086 | 9,573 | | Deferred tax assets | 75,675 | 65,933 | | Receivables from disposal of subsidiaries | 5,500 | 5,500 | | Receivables from disposal of associates | 51,426 | — | | Loan receivables | 70,102 | 44,000 | | Total Non-current Assets | 450,882 | 403,315 | | Current Assets | | | | Trade receivables | 88,353 | 94,413 | | Financial assets at fair value through profit or loss | 446,057 | 393,726 | | Prepayments, other receivables and deposits | 86,790 | 182,882 | | Receivables from disposal of subsidiaries | 1,700 | 11,350 | | Receivables from disposal of associates | 54,709 | 106,989 | | Loan receivables | 107,532 | 104,403 | | Restricted bank deposits | — | 50,000 | | Short-term bank deposits | 162,000 | 65,000 | | Cash and cash equivalents | 827,676 | 755,032 | | Total Current Assets | 1,774,817 | 1,763,795 | | Current Liabilities | | | | Trade and other payables | 89,344 | 55,114 | | Deferred revenue | 111,809 | 147,105 | | Tax payable | 31,028 | 18,900 | | Lease liabilities | 6,255 | 8,365 | | Dividends payable | — | 4,800 | | Total Current Liabilities | 238,436 | 234,284 | | Net Current Assets | 1,536,381 | 1,529,511 | | Total Assets Less Current Liabilities | 1,987,263 | 1,932,826 | | Non-current Liabilities | | | | Lease liabilities | 9,519 | 12,888 | | Deferred tax liabilities | 1,721 | 3,786 | | Total Non-current Liabilities | 11,240 | 16,674 | | Net Assets | 1,976,023 | 1,916,152 | | Capital and Reserves | | | | Share capital | 42 | 42 | | Reserves | 1,921,015 | 1,882,018 | | Equity attributable to owners of the Company | 1,921,057 | 1,882,060 | | Non-controlling interests | 54,966 | 34,092 | | Total Equity | 1,976,023 | 1,916,152 | Condensed Consolidated Statement of Changes in Equity Condensed Consolidated Statement of Changes in Equity (For the Six Months Ended June 30) | Indicator (RMB thousand) | Share Capital | Shares Held for Share Award Scheme | Share Premium | Statutory Reserve | Other Reserves | Share-based Payment Reserve | Fair Value Through Other Comprehensive Income Reserve | Retained Earnings | Subtotal Attributable to Owners of the Company | Non-controlling Interests | Total Equity | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | As at January 1, 2024 (Audited) | 42 | (9,551) | 40,163 | 15,027 | 19,199 | 13,878 | (13,593) | 2,018,138 | 2,083,303 | 847 | 2,084,150 | | Profit and total comprehensive income for the period | — | — | — | — | — | — | — | 28,009 | 28,009 | 5,661 | 33,670 | | Share-based payment expenses recognized under share option scheme and increase in fair value under compensation grants (as defined in Note 19) | — | — | — | — | — | 142 | — | — | 142 | — | 142 | | Share-based payment expenses recognized under 2021 Share Award Scheme | — | — | — | — | — | 43 | — | — | 43 | — | 43 | | Share-based payment expenses recognized under 2024 Share Award Scheme | — | — | — | — | — | 13,808 | — | — | 13,808 | — | 13,808 | | Awarded shares vested under compensation grants, 2021 Share Award Scheme and 2024 Share Award Scheme | — | 14,382 | 12,162 | — | — | (26,544) | — | — | — | — | — | | Share-based payment expenses related to forfeited share awards after vesting date | — | — | — | — | — | (1,327) | — | 1,327 | — | — | — | | Shareholder contribution | — | (64,790) | — | — | 64,790 | — | — | — | — | — | — | | Repurchase of shares | — | (10,894) | — | — | — | — | — | — | (10,894) | — | (10,894) | | Dividends recognized as distribution | — | — | — | — | — | — | — | (117,226) | (117,226) | — | (117,226) | | As at June 30, 2024 (Unaudited) | 42 | (70,853) | 52,325 | 15,027 | 83,989 | — | (13,593) | 1,930,248 | 1,997,185 | 6,508 | 2,003,693 | | As at January 1, 2025 (Audited) | 42 | (94,323) | 46,305 | 15,027 | 99,636 | — | (11,845) | 1,827,218 | 1,882,060 | 34,092 | 1,916,152 | | Profit and total comprehensive income for the period | — | — | — | — | — | — | — | 37,395 | 37,395 | 16,074 | 53,469 | | Share-based payment expenses recognized under 2025 Share Award Scheme | — | — | — | — | — | 3,646 | — | — | 3,646 | — | 3,646 | | Awarded shares vested under 2025 Share Award Scheme | — | 6,386 | (2,740) | — | — | (3,646) | — | — | — | — | — | | Repurchase of shares | — | (2,044) | — | — | — | — | — | — | (2,044) | — | (2,044) | | Cancellation of dividends paid to non-controlling interests | — | — | — | — | — | — | — | — | — | 4,800 | 4,800 | | As at June 30, 2025 (Unaudited) | 42 | (89,981) | 43,565 | 15,027 | 99,636 | — | (11,845) | 1,864,613 | 1,921,057 | 54,966 | 1,976,023 | Share Repurchase Details (For the Six Months Ended June 30) | Repurchase Month | Number of Ordinary Shares | Price Per Share (HKD) (Highest/Lowest) | Total Consideration Paid (HKD thousand) | | :--- | :--- | :--- | :--- | | 2025 | | | | | January | 580,000 | 1.494 / 1.363 | 836 | | May | 680,000 | 1.176 / 1.103 | 769 | | June | 526,000 | 1.288 / 1.122 | 624 | | Total | 1,786,000 | | 2,229 | | 2024 | | | | | January | 2,974,000 | 2.684 / 2.197 | 7,439 | | April | 1,352,000 | 2.248 / 1.966 | 2,962 | | June | 838,000 | 1.915 / 1.877 | 1,581 | | Total | 5,164,000 | | 11,982 | - For the six months ended June 30, 2025, the Company repurchased 1,786,000 shares in the open market through Futu Securities International (Hong Kong) Limited, with a total consideration of approximately RMB2,044,000[51] Condensed Consolidated Statement of Cash Flows Condensed Consolidated Statement of Cash Flows (For the Six Months Ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Operating Activities | | | | Profit for the period | 53,469 | 33,670 | | Operating cash flow before working capital changes | 137,859 | 51,018 | | Net cash generated from operating activities | 210,779 | 12,162 | | Investing Activities | | | | Net cash used in investing activities | (132,175) | (309,147) | | Financing Activities | | | | Net cash used in financing activities | (6,111) | (16,926) | | Net increase (decrease) in cash and cash equivalents | 72,493 | (313,911) | | Cash and cash equivalents at beginning of period | 755,032 | 1,340,918 | | Effect of exchange rate changes | 151 | 1,684 | | Cash and cash equivalents at end of period | 827,676 | 1,028,691 | Notes to the Condensed Consolidated Financial Statements This section provides detailed notes to the condensed consolidated financial statements, covering the company's general information, accounting policies, revenue composition, dividend policy, income tax calculation, profit for the period breakdown, earnings per share calculation, changes in investments in associates, financial asset classification, aging analysis of receivables and payables, and share capital structure, offering deeper context and explanations for the financial data General Information and Basis of Preparation - Home Interactive Entertainment Technology Co, Ltd was incorporated in the Cayman Islands, and its shares have been listed on the Main Board of the Stock Exchange of Hong Kong Limited since July 4, 2019[54] - The Group is principally engaged in the development, publishing, and operation of mobile games in China[54] - The condensed consolidated financial statements are presented in RMB, which is also the functional currency of the Group[55] Accounting Policies - The condensed consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value[57] - The accounting policies and methods of calculation adopted for the condensed consolidated financial statements for the six months ended June 30, 2025, are consistent with those presented in the annual financial statements for the year ended December 31, 2024[57] - During this interim period, the Group has first adopted the revised IFRS accounting standards that are mandatorily effective for annual periods beginning on or after January 1, 2025, which had no significant impact on the financial position and performance[58] Revenue and Segment Information - Revenue refers to income from the sale of virtual tokens for self-developed mobile games, third-party mobile games, and advertising income[59] - The Group's operating activities are conducted by a single operating segment focused on mobile game development and operation[59] - Revenue from self-developed and third-party mobile games is recognized at the point in time when the customer obtains control of the service; advertising revenue is recognized when advertisements placed on third-party platforms are displayed in the game interface[59][60] - The Group has a large number of customers, and no single customer accounted for 10% or more of the Group's revenue in either period[61] Dividends - No dividends were declared and paid during this interim period[62] - In the previous interim period, a final dividend of HKD0.10 per share (equivalent to RMB0.09) for the year ended December 31, 2023, was declared and paid on July 11, 2024, totaling approximately RMB117,226,000[62] Income Tax Expense Income Tax Expense Analysis (For the Six Months Ended June 30) | Tax Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current tax—PRC corporate income tax | 19,542 | 21,835 | | Under-provision (over-provision) in prior years | 1,574 | (3,580) | | Deferred tax | (11,807) | (11,591) | | Total | 9,309 | 6,664 | - Yaotang (Xiamen) Network Technology Co, Ltd and Jilin Haiqi Network Technology Co, Ltd are recognized as "Double Software Enterprises," enjoying a two-year corporate income tax exemption followed by a three-year 50% tax rate reduction[64] - Yaotang (Shenzhen) Network Technology Co, Ltd obtained High-tech Enterprise certification, enjoying a preferential income tax rate of 15%[65] - Enterprises engaged in R&D activities are entitled to deduct 200% of R&D expenses incurred in the current year as deductible expenses (super deduction)[65] Profit for the Period Profit for the Period Deductions (For the Six Months Ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Commissions and fees charged by distribution channels and payment providers | 203,693 | 288,031 | | Depreciation of property, plant and equipment | 12,611 | 8,007 | | Depreciation of right-of-use assets | 3,603 | 5,530 | | Amortization of intangible assets | 16,133 | 470 | | Impairment losses under expected credit loss model | 34,275 | 6,285 | | Directors' remuneration | 5,092 | 8,108 | | Total other staff costs | 67,310 | 99,847 | Earnings Per Share Calculation of Basic and Diluted Earnings Per Share (For the Six Months Ended June 30) | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the purpose of calculating basic and diluted earnings per share: Profit for the period attributable to owners of the Company | 37,395 | 28,009 | | | | | | Number of Shares | 2025 (Unaudited) | 2024 (Unaudited) | | Weighted average number of ordinary shares for the purpose of calculating basic and diluted earnings per share | 1,226,335,488 | 1,254,914,473 | - Share awards had no impact on diluted earnings per share for the current and previous interim periods[70] Investments in Associates Investments in Associates (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of investments in associates | 58,538 | 61,100 | | Share of post-acquisition results (net of dividends received) | (6,523) | (6,180) | | Total | 52,015 | 54,920 | - During this interim period, investments were made in two new associates primarily engaged in game development, with a total consideration of RMB850,000[71] - During this interim period, interests in Chongqing Huangjiu Technology Co, Ltd and Guangzhou Yaoyang Technology Co, Ltd were disposed of for a total consideration of RMB6,212,000[71] - On June 1, 2025, a supplemental agreement was signed with an entity controlled by Mr Luo Wei, revising the repayment date for the outstanding consideration of RMB99,900,000 and recognizing a loss of RMB10,351,000 due to the derecognition of receivables from the disposal of an associate[73] Financial Assets at Fair Value Through Profit or Loss Financial Assets at Fair Value Through Profit or Loss (As of June 30) | Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Unlisted Securities | | | | —Investments in partnership enterprises | 26,766 | 31,243 | | Current Listed Securities Held for Trading | | | | —Equity securities on SSE | — | 25,696 | | Current Unlisted Securities Held for Trading | | | | —Private equity funds | 276,879 | 129,269 | | —Money market funds | 148,752 | 106,461 | | —Structured deposits | 20,426 | 132,300 | | Total | 446,057 | 393,726 | Trade Receivables Aging Analysis of Trade Receivables (As of June 30) | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 30 days | 71,402 | 77,594 | | 31 to 60 days | 9,594 | 11,494 | | 61 to 90 days | 1,573 | 2,469 | | 91 to 180 days | 1,876 | 284 | | Over 180 days | 3,911 | 2,572 | | Total | 88,356 | 94,413 | - The credit period for trade receivables is generally 0 to 90 days[77] - As of June 30, 2025, overdue balances of RMB3,911,000 were overdue for 90 days or more but were not considered in default due to the debtors' cooperative history and good collection history[77] Prepayments, Other Receivables and Deposits Prepayments, Other Receivables and Deposits (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Prepayments for co-operation commissions | 12,349 | 71,356 | | Prepayments for R&D expenses | 14,365 | 15,040 | | Prepayments for advertising and promotion expenses | 11,886 | 43,793 | | Prepayments to game developers | 11,630 | 5,863 | | Prepayments for game and server related expenses | 1,874 | 2,637 | | Loans to employees | 14,270 | 21,139 | | Lease and other deposits | 7,836 | 8,413 | | VAT and other recoverable taxes | 8,063 | 11,522 | | Loans to employees | 4,580 | 279 | | Other receivables | 12,972 | — | | Others | 8,049 | 12,439 | | Total | 107,874 | 192,481 | | Less: Provision for credit losses | (12,998) | (26) | | Adjusted Total | 94,876 | 192,455 | - The provision for credit losses is mainly for other receivables from co-operation commissions paid due to Chengdu Weiying facing significant financial difficulties[78] Trade and Other Payables Trade and Other Payables (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 36,986 | — | | Other payables | 52,358 | 55,114 | | Total | 89,344 | 55,114 | Aging Analysis of Trade Payables (As of June 30) | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 60 days | 6,778 | — | | 61 to 90 days | 8,409 | — | | Over 90 days | 21,799 | — | | Total | 36,986 | — | Share Capital - As of June 30, 2025, the authorized share capital was 10,000,000,000 ordinary shares of USD0.000005 each, with a par value of USD50,000[79] - The issued and fully paid share capital was 1,283,403,500 ordinary shares of USD0.000005 each, with a par value of USD6,417, equivalent to RMB42 thousand[79] Other Information This section discloses the company's share repurchase activities during the reporting period, confirms no significant events after the reporting period, highlights continuous compliance with corporate governance codes and directors' securities transaction standards, notes the audit committee's review of interim results, and states the decision not to declare an interim dividend to conserve capital for business development Purchase, Sale and Redemption of the Company’s Listed Securities - For the six months ended June 30, 2025, Futu Securities International (Hong Kong) Limited, as an independent trustee of the share award scheme, purchased 1,786,000 shares in the open market for a total consideration of RMB2,044,000, for future grants under the share award scheme[80] - As of June 30, 2025, the Company and its subsidiaries did not hold any treasury shares[81] Events After the Reporting Period - No significant events affecting the Group have occurred from the end of the reporting period up to the date of this announcement[82] Corporate Governance - The Company has complied with the applicable code provisions of the Corporate Governance Code set out in Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited for the six months ended June 30, 2025[83] Compliance with the Model Code for Securities Transactions by Directors - Following specific enquiries by the Company, all Directors confirmed their compliance with the "Model Code for Securities Transactions by Directors of Listed Issuers" set out in Appendix C3 to the Listing Rules throughout the reporting period[84] Audit Committee - The Audit Committee comprises three independent non-executive Directors: Mr Hu Yangyang (Chairman), Mr Zhang Yuguo, and Ms Guo Ying[85] - The Audit Committee has reviewed the Company's unaudited condensed interim results for the reporting period and confirmed compliance with applicable accounting principles, standards, and requirements, with adequate disclosures made[85] Changes in Directors’ Biographical Details under Rule 13.51B(1) of the Listing Rules - There were no changes in Directors' biographical details requiring disclosure under Rule 13.51B(1) of the Listing Rules[86] Interim Dividend - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 (2024: nil), to retain capital for strategic business development[87] Publication of Interim Results and Interim Report - This announcement is published on the HKEX website and the Company's website, with the interim report to be published on both websites in due course[88]