第七大道(00797) - 2025 - 中期业绩

Company Announcement and Financial Highlights This section provides an overview of 7Road Holdings Limited's unaudited interim results for the six months ended June 30, 2025, and key financial performance Company Information 7Road Holdings Limited (Stock Code: 797) released its unaudited consolidated interim results for the six months ended June 30, 2025 - Company Name: 7Road Holdings Limited, Stock Code: 797[2] - Announcement content: Unaudited consolidated interim results for the six months ended June 30, 2025[3] Financial Performance Summary In H1 2025, total revenue from continuing operations increased by 26.5% to RMB 176.4 million, achieving a profit of RMB 26.1 million, turning losses into profits 2025 H1 Key Financial Data Summary | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | Change | | :--- | :--- | :--- | :--- | | Revenue | 176,387 | 139,389 | +26.5% | | Profit/(Loss) for the period | 26,099 | (5,971) | Turnaround | | Profit/(Loss) for the period attributable to owners of the Company | 27,129 | (7,814) | Turnaround | - Total revenue from continuing operations was approximately RMB 176.4 million, an increase of approximately 26.5% year-on-year[5] - Profit for the period was approximately RMB 26.1 million, compared to a loss of approximately RMB 6.0 million in the same period last year, achieving a turnaround[5] Business Overview This section details the overall market conditions for the gaming industry and the Group's operational review and outlook for the second half of 2025 Industry Overview In H1 2025, China's gaming market achieved record-high actual sales revenue and user scale, with strong growth in mobile and mini-program games, and increased overseas revenue from self-developed games - From January to June 2025, domestic game market actual sales revenue was approximately RMB 168.0 billion, a year-on-year increase of 14.08%[6] - China's game user scale reached nearly 679 million, a year-on-year increase of 0.72%, both historical highs[6] - Mobile game market actual sales revenue was approximately RMB 125.309 billion, a year-on-year increase of 16.55%; mini-program mobile game revenue increased by 40.2% to RMB 23.276 billion[6] - Overseas actual sales revenue of self-developed domestic games was approximately USD 9.501 billion, a year-on-year increase of 11.07%, with the US, Japan, and South Korea remaining the main markets[6] Business Review for H1 2025 The Group focused on core online game business in H1, achieving a 30.7% revenue increase, with mobile games accounting for 79%, while expanding mini-program games, overseas markets, and integrating AI - During the reporting period, online game business achieved revenue of approximately RMB 176 million, a year-on-year increase of 30.7%[7] - Mobile game revenue accounted for 79%, and web game revenue accounted for 21%[7] - Self-developed mobile game "DDTank" accumulated revenue increased by 15.2% year-on-year in H1; exclusive operation of mini-program game "I Am MT" continued to generate revenue[7] - Overseas publishing business continued to strengthen, with "Shen Qu H5" launched in Europe, America, Hong Kong, Macau, Taiwan, and Southeast Asia, contributing incremental revenue[7] - Artificial intelligence has been successfully integrated into multiple business lines, improving R&D efficiency and product quality[9] Outlook for H2 2025 The Group will continue its "IP-driven, premium, globalized" strategy, deepening R&D in casual competitive and MMORPGs, exploring niche overseas markets, and launching new multi-platform and mini-program games - The Group will adhere to the "IP-driven, premium, globalized" development strategy, strengthening long-term operations and global publishing capabilities[10] - Continued deepening of R&D investment in casual competitive and MMORPG fields to enrich product types[10] - Overseas publishing will explore niche regional market opportunities such as Turkey and the extended Middle East region[10] - The first "DDTank" IP multi-platform classic version is under development, expected to complete basic R&D within 2025[10] Financial Review This section provides a detailed analysis of the Group's financial performance, liquidity, and financial resources for the period, including key operational data and balance sheet items Operating Data The Group assesses operational performance using key performance indicators (MAU, MPAU, ARPPU), with both web and mobile game ARPPU showing year-on-year growth in H1 2025, indicating improved user monetization - The Group uses Monthly Active Users (MAU), Monthly Paying Active Users (MPAU), and Average Revenue Per Paying User (ARPPU) to assess operating performance[12] 2025 H1 Operating Key Performance Indicators | Indicator | Web Games | Mobile Games | | :--- | :--- | :--- | | Average Monthly Active Users (MAU) | Approx. 640,000 | Approx. 550,000 | | Average Monthly Paying Active Users (MPAU) | Approx. 24,200 | Approx. 47,400 | | Average Revenue Per Paying User (ARPPU) | RMB 626 (YoY +19.2%) | RMB 620 (YoY +15.9%) | Income Statement Comparison (2025 vs 2024 H1) In H1 2025, the Group's continuing operations achieved an operating profit of RMB 32.4 million, a significant improvement from the RMB 4.8 million operating loss in the prior year, driven by revenue growth and controlled expenses 2025 H1 Income Statement Key Metrics Comparison | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 176,387 | 139,389 | +26.5% | | Cost of Revenue | (53,748) | (35,856) | +49.9% | | Gross Profit | 122,639 | 103,533 | +18.5% | | R&D Expenses | (33,074) | (70,690) | -53.2% | | Selling and Marketing Expenses | (24,690) | (38,023) | -35.1% | | Administrative Expenses | (29,811) | (21,322) | +39.8% | | Operating Profit/(Loss) | 32,419 | (4,789) | Turnaround | | Profit/(Loss) for the period | 26,099 | (5,971) | Turnaround | Revenue Total revenue increased by 26.5% year-on-year to RMB 176.4 million in H1 2025, primarily driven by the positive performance of the online game business, with growth in both self-developed and agency games - Total revenue was approximately RMB 176.4 million, an increase of approximately 26.5% year-on-year[15] - Game business revenue was approximately RMB 176.4 million, an increase of approximately 30.7% year-on-year, mainly due to the positive performance of online games[15] 2025 H1 Revenue Details | Type of Goods or Services | 2025 (RMB '000) | % | 2024 (RMB '000) | % | | :--- | :--- | :--- | :--- | :--- | | Online Game Revenue | 176,387 | 100.0% | 134,941 | 96.8% | | - Self-developed Games (published by the Group) | 92,733 | 52.6% | 77,734 | 55.8% | | - Self-developed Games (published by other publishers) | 46,322 | 26.3% | 39,035 | 28.0% | | - Agency Games (published by the Group) | 31,623 | 17.9% | 18,172 | 13.0% | | - Agency Games (published by other publishers) | 5,709 | 3.2% | — | — | | IP Licensing | — | — | 3,553 | 2.6% | | Cloud-related Services | — | — | 895 | 0.6% | | Total | 176,387 | 100% | 139,389 | 100% | Cost of Revenue Cost of revenue increased by 49.9% year-on-year to RMB 53.7 million, primarily due to higher game channel service fees and agency costs - Cost of revenue was approximately RMB 53.7 million, an increase of approximately 49.9% year-on-year[16] - The increase was mainly due to higher game channel service fees and agency costs[16] Gross Profit and Gross Margin Gross profit increased by 18.5% year-on-year to RMB 122.6 million, but gross margin decreased to 69.5% as cost of revenue grew faster than revenue - Gross profit was approximately RMB 122.6 million, an increase of approximately 18.5% year-on-year[17] - Gross margin was approximately 69.5%, a decrease from 74.3% in the same period last year, mainly because the growth rate of cost of revenue exceeded that of total revenue[17] Research and Development Expenses R&D expenses significantly decreased by 53.2% year-on-year to RMB 33.1 million, primarily due to enhanced R&D expense management and reduced staff remuneration - R&D expenses were approximately RMB 33.1 million, a decrease of approximately 53.2% year-on-year[18] - The decrease was mainly due to strengthened R&D expense management, reduced staff remuneration expenses, and other R&D expenses[18] Selling and Marketing Expenses Selling and marketing expenses decreased by 35.1% year-on-year to RMB 24.7 million, primarily due to lower marketing and promotion costs for game operations and publishing - Selling and marketing expenses were approximately RMB 24.7 million, a decrease of approximately 35.1% year-on-year[19] - The decrease was mainly due to lower marketing and promotion expenses for game operations and publishing compared to the same period last year[19] Administrative Expenses Administrative expenses increased by 39.8% year-on-year to RMB 29.8 million, primarily due to an increase in other professional service fees - Administrative expenses were approximately RMB 29.8 million, an increase of approximately 39.8% year-on-year[20] - The increase was mainly due to an increase in other professional service fees compared to the same period last year[20] Income Tax Income tax expense increased year-on-year, primarily due to higher profit before tax, with applicable tax rates ranging from 8.25% to 25% - Income tax expense increased year-on-year, mainly due to higher profit before tax[21] - Applicable income tax rates ranged from 8.25% to 25% (2024: 12.5% to 25%)[21] Profit/(Loss) for the Period Profit for the period attributable to owners of the Company from continuing operations was approximately RMB 27.1 million, successfully reversing the loss from the prior year, mainly due to increased online game revenue - Profit for the period attributable to owners of the Company from continuing operations was approximately RMB 27.1 million, compared to a loss of approximately RMB 9.1 million in the same period last year[22] - The turnaround was mainly due to increased revenue from online games' positive performance in H1 2025[22] Liquidity and Financial Resources As of June 30, 2025, cash and cash equivalents increased by 64.9% to RMB 100.0 million, primarily driven by net cash inflow from operating activities - Cash and cash equivalents were approximately RMB 100.0 million, an increase of approximately 64.9% compared to December 31, 2024[23] - The increase was mainly due to net cash inflow from operating activities during the reporting period[23] Interest-Bearing Borrowings As of June 30, 2025, total borrowings remained at RMB 15.0 million, indicating a stable financial position - Total borrowings were approximately RMB 15.0 million, consistent with December 31, 2024[24] Gearing Ratio As of June 30, 2025, the gearing ratio slightly increased to 7.7%, indicating a low level of financial leverage - The gearing ratio was approximately 7.7%, a slight increase from 6.9% as of December 31, 2024[25] Capital Expenditure Capital expenditure significantly decreased by 96.5% to RMB 0.6 million in H1 2025, primarily due to building-related renovations in the prior year 2025 H1 Capital Expenditure Comparison | Item | 2025 (RMB '000) | 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Servers and other equipment | 25 | 98 | -74.5 | | Motor vehicles | 545 | — | 0 | | Buildings and related renovations and leasehold land | — | 16,178 | -100.0 | | Total | 570 | 16,276 | -96.5 | - Total capital expenditure was approximately RMB 0.6 million, a decrease of approximately 96.5% compared to RMB 16.3 million in the same period last year[27] - The decrease was mainly due to building-related renovations purchased in H1 2024[27] Foreign Exchange Risk The Group operates in overseas markets through foreign publishers, exposing it to foreign exchange risks from currencies like USD, but currently has no hedging policy - The Group operates in overseas markets through foreign publishers, bearing foreign exchange risks from currencies such as USD[28] - For the six months ended June 30, 2025, the Group had no policy to hedge against any foreign currency fluctuations[28] Pledged Assets As of June 30, 2025, the Group pledged certain property, plant and equipment and right-of-use assets for borrowings of RMB 15.0 million - Property, plant and equipment of RMB 7,227,000 and right-of-use assets of RMB 32,234,000 were pledged for borrowings of RMB 15.0 million[29] Contingent Liabilities and Guarantees As of June 30, 2025, the Group had no other unrecorded significant contingent liabilities, guarantees, or major litigations, apart from disclosed major legal proceedings and part of Note 16 - Except for major legal proceedings and disclosures in Note 16, there were no other unrecorded significant contingent liabilities, guarantees, or major litigations[31] Future Plans for Material Investments or Capital Assets As of the announcement date, the Group has no other future plans for material investments or capital assets beyond those already disclosed - As of the announcement date, the Group has no other future plans for material investments or capital assets[32] Material Investments Held The Group holds material investments in Shanghai Chaoxi, Ningbo Lianjun, and Nanjing Linghang; the Shanghai Chaoxi investment was sold in July 2025, generating a gain, while the others are long-term investments Investment in Shanghai Chaoxi As of June 30, 2025, the Group held approximately 1.97% equity in Shanghai Chaoxi with a fair value of RMB 394.0 million, recognizing an unrealized fair value gain of RMB 14.0 million; this investment was sold in July 2025, yielding a gain - As of June 30, 2025, the fair value of the investment in Shanghai Chaoxi was approximately RMB 394.0 million, accounting for approximately 21.4% of total assets[33] - Accumulated unrealized fair value gain on investment in Shanghai Chaoxi was approximately RMB 14.0 million[33] - The investment was sold on July 16, 2025, and the Group will record a disposal gain of approximately RMB 2.0 million, totaling a gain of approximately RMB 14.0 million[35] Investment in Ningbo Lianjun As of June 30, 2025, the Group held approximately 20.98% equity in Ningbo Lianjun with a fair value of RMB 116.3 million, recognizing an unrealized fair value gain of RMB 11.3 million, considered a medium-to-long-term investment focusing on integrated circuits - The fair value of the investment in Ningbo Lianjun was approximately RMB 116.3 million, accounting for approximately 6.3% of total assets[36] - Accumulated unrealized fair value gain on investment in Ningbo Lianjun was approximately RMB 11.3 million[36] - The Group actually holds approximately 20.98% equity in Ningbo Lianjun, a fund focusing on integrated circuits and upstream/downstream enterprises, considered a medium-to-long-term investment[36] Direct Investment in Nanjing Linghang As of June 30, 2025, the Group directly held approximately 0.5085% equity in Nanjing Linghang with a fair value of RMB 122.3 million, considered a medium-to-long-term investment expected to yield financial returns from its smart mobility platform business - The fair value of the direct investment in Nanjing Linghang was approximately RMB 122.3 million, accounting for approximately 6.6% of total assets[38] - The Group directly holds approximately 0.5085% equity in Nanjing Linghang, which operates a smart mobility platform, and this investment is considered a medium-to-long-term investment[38] Material Acquisitions and Disposals of Subsidiaries, Associates, and Joint Ventures In H1 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - In H1 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[40] Employees and Remuneration Policy As of June 30, 2025, the Group had 209 full-time employees, with 70% in R&D; total employee remuneration in H1 was RMB 45.8 million, based on performance, experience, and ability, with training provided - As of June 30, 2025, the Group had 209 full-time employees, with R&D personnel accounting for 70%[41] - Total employee remuneration for H1 2025 was approximately RMB 45.8 million[41] - Remuneration policy is based on performance, experience, and ability, with targeted training provided[42] Major Legal Proceedings The Group is involved in a legal dispute with Qianhai Huanjing regarding "DDTank" IP contract, with a claim of RMB 60.2 million; the case was remanded for retrial after a successful appeal, but is not expected to affect normal business operations - Qianhai Huanjing filed a lawsuit against Guangzhou Zhangyingkong and Angame Inc. in April 2021 regarding a "DDTank" IP contract dispute, with a claim amount of approximately RMB 60.2 million[43] - The first instance ruling dismissed the claim, Qianhai Huanjing successfully appealed, and the case has been remanded for retrial, but is not expected to affect the Group's normal business operations[43] Material Post-Balance Sheet Events The Group completed the disposal of its investment in Shanghai Chaoxi-related partnership interests on July 16, 2025, with no other material post-balance sheet events - The Group completed the disposal of its investment in Shanghai Chaoxi-related partnership interests on July 16, 2025[45] Financial Statements This section presents the Group's interim condensed consolidated statement of profit or loss and other comprehensive income and statement of financial position for the period Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income The statement shows a profit from continuing operations of RMB 26.1 million, profit attributable to owners of the Company of RMB 27.1 million, total comprehensive income of RMB 24.8 million, and basic earnings per share of RMB 0.011 for the six months ended June 30, 2025 2025 H1 Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Profit/(Loss) for the period from continuing operations | 26,099 | (7,246) | | Profit/(Loss) for the period | 26,099 | (5,971) | | Total comprehensive income/(expense) for the period | 24,756 | (6,224) | | Profit/(Loss) for the period attributable to owners of the Company | 27,129 | (7,814) | | Basic earnings/(loss) per share | 0.011 | (0.003) | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets were RMB 1,845.2 million, total liabilities were RMB 141.4 million, and net assets reached RMB 1,703.9 million, with financial assets at fair value through profit or loss being a significant component of non-current assets 2025 June 30 Consolidated Statement of Financial Position Summary | Indicator | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Non-current assets | 1,575,811 | 1,547,385 | | Current assets | 269,422 | 257,234 | | Total Assets | 1,845,233 | 1,804,619 | | Current liabilities | 122,994 | 113,783 | | Non-current liabilities | 18,376 | 11,225 | | Total Liabilities | 141,370 | 125,008 | | Net Assets | 1,703,863 | 1,679,611 | | Total Equity attributable to owners of the Company | 1,703,863 | 1,678,077 | - Financial assets at fair value through profit or loss were the main component of non-current assets, totaling RMB 841.4 million[48] Notes to Financial Information This section provides detailed notes on the Group's financial information, including general information, basis of preparation, accounting policies, segment information, and specific financial item breakdowns General Information 7Road Holdings Limited, incorporated in the Cayman Islands, primarily develops and publishes web and mobile games in China and other countries, with financial statements presented in RMB - The Company is incorporated in the Cayman Islands, primarily engaged in the development and publishing of web and mobile games in China and other countries[50] - The unaudited condensed consolidated financial statements are presented in RMB[50] Basis of Preparation The financial statements are prepared in accordance with IAS 34 "Interim Financial Reporting" and the HKEX Listing Rules, with accounting policies consistent with the 2024 annual financial statements - The financial statements are prepared in accordance with IAS 34 and the HKEX Listing Rules[51] - Accounting policies are consistent with the annual financial statements for the year ended December 31, 2024[51] Adoption of New and Revised IFRS Accounting Standards The Group adopted all new and revised IFRS effective January 1, 2025, with no material changes to accounting policies, presentation, or reported amounts for the current and prior periods - The Group has adopted all new and revised IFRS effective January 1, 2025[52] - The adoption of these standards did not result in material changes to accounting policies, presentation, or reported amounts for the current and prior periods[52] Segment Information and Revenue The Board considers the Group's business to operate and be managed as a single segment, thus no segment information is presented; the vast majority of non-current assets are located in China, and online game revenue is the primary source of income - The Group's business is operated and managed as a single segment, thus no segment information is presented[53] - The vast majority of non-current assets are located in China[53] 2025 H1 Online Game Revenue Details | Type of Goods or Services | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Online Game Revenue | 176,387 | 134,941 | | - Self-developed Games (published by the Group) | 92,733 | 77,734 | | - Self-developed Games (published by other publishers) | 46,322 | 39,035 | | - Agency Games (published by the Group) | 31,623 | 18,172 | | - Agency Games (published by other publishers) | 5,709 | — | | IP Licensing | — | 3,553 | | Cloud-related Services | — | 895 | Other Income Other income in H1 2025 was RMB 1.4 million, a significant decrease from RMB 13.5 million in the prior year, mainly due to reduced government grants and other income 2025 H1 Other Income Details | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Government grants | 760 | 2,528 | | Refund of China VAT | 581 | 444 | | Others | 38 | 10,573 | | Total | 1,379 | 13,545 | Net Other Gains or Losses and Net Finance Costs Net other gains or losses in H1 2025 was a loss of RMB 0.3 million, compared to a gain of RMB 23.0 million in the prior year, mainly impacted by fair value changes of financial assets; net finance costs improved to a loss of RMB 0.7 million from RMB 0.9 million 2025 H1 Net Other Gains or Losses Details | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Fair value changes of financial assets at fair value through profit or loss | (53) | 21,225 | | (Loss)/gain on disposal of property, plant and equipment and right-of-use assets | (235) | 311 | | Gain on disposal of a subsidiary | 120 | — | | Net foreign exchange (loss)/gain | (36) | 394 | | Others | (88) | 1,081 | | Total | (292) | 23,011 | 2025 H1 Net Finance Costs Details | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Finance income (total) | 805 | 198 | | Finance costs (total) | (1,500) | (1,142) | | Net Finance Costs | (695) | (944) | Income Tax Expense Income tax expense in H1 2025 significantly increased to RMB 5.5 million from RMB 0.3 million in the prior year, primarily due to higher current and deferred tax during the period 2025 H1 Income Tax Expense Details | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Current income tax | 1,060 | 14 | | Deferred tax | 4,420 | 321 | | Total | 5,480 | 335 | - The increase in income tax expense was mainly due to the increase in profit before tax for the Group and its subsidiaries in H1 2025[21] Discontinued Operations The Group completed the disposal of Shanghai Ling Su Network Technology Co., Ltd. on April 11, 2024, with its cloud computing and related services business classified as discontinued operations, which recorded a profit of RMB 1.3 million in H1 2024 - The Group completed the disposal of all equity interests in Shanghai Ling Su Network Technology Co., Ltd. on April 11, 2024, and its cloud computing and related services business is considered a discontinued operation[64] 2024 H1 Discontinued Operations Financial Summary | Indicator | 2024 (RMB '000) | | :--- | :--- | | Loss from discontinued operations | (8,167) | | Gain on disposal of discontinued operations | 9,442 | | Profit for the period from discontinued operations | 1,275 | Notes to Operating Profit/(Loss) This note details the expenses comprising operating profit/(loss), highlighting significant year-on-year decreases in employee benefit expenses and promotion and advertising expenses in H1 2025 2025 H1 Major Operating Expenses Details | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Channel service fees and agency costs | 31,995 | 13,356 | | Employee benefit expenses | 45,828 | 69,088 | | Other R&D technical service fees | 8,321 | 23,001 | | Other professional service fees | 14,264 | 3,757 | | Promotion and advertising expenses | 24,690 | 38,297 | - Employee benefit expenses decreased by approximately 33.7% year-on-year, and promotion and advertising expenses decreased by approximately 35.5% year-on-year[65] Dividends The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[66] Basic and Diluted Earnings/(Loss) Per Share Basic and diluted earnings per share for H1 2025 were both RMB 0.011, a turnaround from a loss of RMB 0.003 in the prior year 2025 H1 Basic and Diluted Earnings/(Loss) Per Share | Indicator | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Basic earnings/(loss) per share — continuing and discontinued operations | 0.011 | (0.003) | | Basic earnings/(loss) per share — continuing operations | 0.011 | (0.004) | | Weighted average number of ordinary shares (thousands) | 2,574,268 | 2,574,268 | - Diluted earnings/(loss) per share is equal to basic earnings/(loss) per share as there are no potential dilutive ordinary shares[68] Trade and Other Receivables As of June 30, 2025, the carrying amount of trade receivables decreased to RMB 58.7 million, with credit terms ranging from 30 to 120 days 2025 June 30 Trade Receivables Ageing Analysis | Ageing | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Within 3 months | 25,431 | 38,993 | | 3 to 6 months | 337 | 1,756 | | 6 months to 1 year | 7,299 | 1,805 | | 1 to 2 years | 1,602 | 2,049 | | Over 2 years | 86,347 | 86,918 | | Total | 121,016 | 131,521 | | Provision for impairment losses | (62,354) | (62,930) | | Carrying Amount | 58,662 | 68,591 | - The carrying amount of trade receivables decreased from RMB 68.6 million as of December 31, 2024, to RMB 58.7 million[69] Financial Assets at Fair Value Through Profit or Loss As of June 30, 2025, financial assets at fair value through profit or loss totaled RMB 863.7 million, primarily comprising listed and unlisted equity investments in China, unlisted limited partnerships in China, and listed shares in Hong Kong 2025 June 30 Financial Assets at Fair Value Through Profit or Loss Details | Type | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Non-current - China listed shares and unlisted equity investments | 298,848 | 263,693 | | Non-current - China unlisted limited partnerships | 542,553 | 545,757 | | Current - Hong Kong listed shares | 22,326 | 18,603 | | Total | 863,727 | 828,053 | Trade and Other Payables As of June 30, 2025, total trade and other payables increased to RMB 79.7 million, mainly consisting of trade payables and remuneration liabilities 2025 June 30 Trade and Other Payables Details | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade payables | 42,799 | 21,420 | | Remuneration liabilities | 18,309 | 22,543 | | Other tax payables | 3,385 | 5,276 | | Accrued expenses | 15,039 | 15,754 | | Total | 79,678 | 65,158 | - Trade payables increased from RMB 21.4 million as of December 31, 2024, to RMB 42.8 million[70] Contingent Liabilities and Guarantees The "Shen Qu" trade secret litigation was dismissed in the first instance on April 8, 2024, no longer a contingent liability; the Group still provides a guarantee of up to RMB 120 million for the disposed Shanghai Ling Su, but with counter-guarantees, credit risk is not material - The "Shen Qu" trade secret litigation's first instance judgment became effective on April 8, 2024, dismissing all plaintiff's claims, thus no longer constituting a contingent liability for the Group[71] - The Group provides a guarantee of up to RMB 120 million for the disposed Shanghai Ling Su, but has obtained counter-guarantees, making the credit risk not material[72][73] Other Information and Corporate Governance Summary This section covers the Group's policies and practices regarding securities transactions, dividends, compliance with corporate governance codes, and the role of the audit committee Purchase, Sale or Redemption of Listed Securities For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities, nor did the Company hold any treasury shares - For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any shares[74] - The Company did not hold any treasury shares as of June 30, 2025[75] Interim Dividend The Board does not recommend the declaration of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[76] Compliance with Corporate Governance Code 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 of the Listing Rules - The Company has complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules[77] Standard of Conduct for Directors' Securities Transactions The Company adopted the Standard Code set out in Appendix C3 of the Listing Rules, and all directors and relevant employees confirmed compliance during the reporting period - The Company has adopted the Standard Code set out in Appendix C3 of the Listing Rules as its own code of conduct for directors and relevant employees dealing in securities[78] - All directors confirmed compliance with the Standard Code during the reporting period, and no non-compliance by relevant employees was noted[78] Audit Committee The Audit Committee, composed of three independent non-executive directors, has reviewed the Group's unaudited interim results for the six months ended June 30, 2025 - The Audit Committee is composed of three independent non-executive directors, with Mr. Xue Jun as the chairman of the committee[79] - The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025[79] Publication of Interim Results Announcement and 2025 Interim Report This announcement has been published on the HKEX and Company websites, and the interim report will be published by the end of September 2025 - This announcement has been published on the HKEX website (www.hkexnews.hk) and the Company's website (www.7road.com)[80](index=80&type=chunk) - The Group's interim report for the six months ended June 30, 2025, will be published by the end of September 2025[80] Definitions This section provides definitions for key terms and abbreviations used throughout the report, including company names, financial metrics, business types, and related entities, ensuring clarity and understanding Definitions This chapter provides definitions for key terms and abbreviations used in the report, including company names, financial indicators, business types, and related entities, to ensure clear understanding of the report content - Provides definitions for key terms such as "Directors", "Average Revenue Per Paying User", "Audit Committee", "Average Monthly Paying User", "Board", "Corporate Governance Code", "China", "Company"[82][83] - Includes definitions for business and finance-related terms such as "Group", "Hong Kong", "IP", "Listing Rules", "Monthly Active User", "Mobile Game", "Standard Code", "Monthly Paying User", "Nanjing Linghang", "Ningbo Lianjun", "Online Game"[84] - Further defines "Partnership Interest", "Paying User", "Qianhai Huanjing", "R&D", "RMB", "Restricted Share Unit", "Senior Management", "Shanghai Ling Su", "Shanghai Chaoxi", "Shares", "Shareholders", "Stock Exchange", "USD", "Web Game", and "%"[85][86]