汇量科技(01860) - 2025 - 中期业绩

Financial Summary The company reported significant growth in revenue, net income, gross profit, and operating profit for the six months ended June 30, 2025 Financial Summary for the Six Months Ended June 30, 2025 | Metric | 2025 (USD thousand) | 2024 (USD thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 938,111 | 638,287 | 47.0% | | Net Revenue (1) | 253,903 | 166,536 | 52.5% | | Gross Profit | 201,125 | 131,201 | 53.3% | | Operating Profit | 46,916 | 13,243 | 254.3% | | Profit for the Period | 32,284 | 7,337 | 340.0% | | Adjusted EBITDA (2) | 88,681 | 62,881 | 41.0% | - Net revenue is defined as adjusted revenue after deducting costs allocated to traffic publishers, not measured under IFRS standards[3] - Adjusted EBITDA is defined as profit before interest, tax, depreciation, and amortization for the period, adjusted for share-based compensation, one-off loss from discontinuing certain non-programmatic businesses, arbitration-related fees for Heat Cloud Data, foreign exchange loss/(gain), and fair value gain/(loss) on financial assets measured at fair value through profit or loss[3] Business Review This section provides an overview of the company's business, industry trends, strategic layout, development history, and key business segments Company Profile Mobvista is a technology company dedicated to providing Ad-tech and Mar-tech services for the global mobile internet ecosystem, aiming to significantly enhance advertising ROI and help mobile applications overcome growth plateaus through a comprehensive suite of tools - The company offers Ad-tech and Mar-tech services, including user acquisition, monetization, analytics, creative automation, and smart media buying, aiming to enhance ROI and help apps overcome growth plateaus[5] Industry Overview In H1 2025, global economic growth slowed, but the advertising industry remained resilient, with AI applications driving deep integration of AI into ad and mar-tech, while privacy and antitrust regulations fostered a more open and transparent ecosystem, favoring hybrid monetization and ROI-controlled bidding in the booming mobile app market Global Advertising Market Steady Growth, Stricter Privacy and Antitrust Regulations In H1 2025, global economic growth slowed, but the advertising industry remained resilient; 2024 saw significant digital ad spend growth with programmatic ads exceeding 80%, while stricter privacy and antitrust regulations are driving a more open and transparent ad ecosystem, creating opportunities for ad-tech companies - In H1 2025, global economic growth slowed, but the advertising industry maintained growth, with the explosion of AI applications driving deep integration of AI into the sector[6] - Global digital advertising expenditure grew significantly in 2024, with programmatic advertising accounting for over 80%, and stricter privacy regulations and antitrust measures are driving the industry towards a more open and transparent evolution, creating opportunities for technology companies[7][8] Mobile App Market Thrives, Open Web Key for Traffic Growth According to Sensor Tower, global app user time increased by 5.8% YoY in 2024, with double-digit growth in in-app purchase revenue, indicating significant mobile app market potential; advertisers are shifting from download volume to LTV-focused user acquisition, making the open web a crucial channel for acquiring high-LTV users due to its diverse traffic pools, user groups, creative options, and efficient delivery capabilities - The mobile app market is booming, with user engagement and in-app purchase revenue experiencing double-digit growth, leading advertisers to shift their user acquisition strategies towards LTV[9] - The open web, with its diverse traffic pools, varied user groups, rich ad creatives, and efficient delivery capabilities, has become an indispensable key battleground for advertisers and developers to achieve user acquisition and revenue growth[10] Hybrid Monetization Mainstream, ROI-Controlled Bidding Favored by Advertisers Mobile app developers are widely adopting hybrid monetization strategies, combining ads, subscriptions, and in-app purchases to diversify revenue and enhance user experience; ROI-controlled bidding methods are favored by advertisers for their precise measurement of return on investment, with Mintegral actively developing smart bidding systems like Target ROAS and Target CPE since 2023 to meet diverse business objectives - Hybrid monetization strategies are becoming mainstream, with ROI-controlled bidding methods favored by advertisers, and Mintegral has launched Target ROAS and Target CPE smart bidding features to meet diverse business objectives[11][12] Ad-tech Industry Value Chain Structure and Company Strategic Layout The ad-tech industry is segmented into programmatic and non-programmatic advertising, with the company's Mintegral platform, a leading programmatic ad exchange, being its primary revenue and profit driver, covering DSP, ADX, and SSP, and leveraging GameAnalytics and Heat Cloud Data for data asset accumulation and algorithm optimization Programmatic Advertising Platform Value Chain Structure The programmatic advertising value chain includes upstream advertisers/agencies, midstream technology service providers (DSP, ADX, SSP, data management, monitoring, analytics, attribution tools), and downstream media publishers, with various marketing tech providers strategically focusing on one or more segments - The programmatic advertising industry chain includes upstream advertisers, midstream technology service providers (DSP, ADX, SSP, etc.), and downstream media publishers, with each service provider strategically deploying in different segments[14] The Company's Programmatic Advertising Platform As a leading third-party ad-tech platform, the company's core Mintegral platform fully covers DSP, ADX, and SSP, directly connecting advertisers and traffic publishers to form a data closed-loop, enhancing algorithm capabilities and client retention, while also leveraging GameAnalytics and Heat Cloud Data for user behavior statistics, analysis, attribution, and monitoring to optimize algorithms - The Mintegral platform fully covers DSP, ADX, and SSP, directly reaching advertisers and traffic publishers to form a data closed-loop, enhancing algorithm capabilities and client retention rates[15] - The company provides user behavior statistics, analysis, attribution, and monitoring services through GameAnalytics and Heat Cloud Data, accumulating data assets to optimize and iterate algorithms[15] Company Development History Mobvista's development spans three phases: initially focusing on ad network services for Chinese apps expanding overseas, then fully advancing the AI-driven programmatic ad exchange Mintegral for global traffic and client coverage, and finally building an 'Ad-tech+Mar-tech' SaaS tool matrix with products like GameAnalytics and Heat Cloud Data for high-quality growth Phase One: Ad Network Platform — Focused on Serving Chinese Mobile Apps Going Global Established in 2013, the company built China's first overseas marketing alliance, engaging in non-programmatic advertising with a performance-oriented approach, covering domestic and international channels to help Chinese apps expand globally and quickly enter European and American markets, marking its first growth phase - Established in 2013, the company built China's first overseas marketing alliance, engaging in non-programmatic advertising with a performance-oriented approach, serving Chinese apps expanding globally, and rapidly entering European and American markets[20] Phase Two: Programmatic Ad Exchange Platform — "Global Strategy" to Expand into Overseas Local Markets Starting in 2015, the company incubated Mintegral, an AI-driven programmatic interactive advertising platform, to connect global users in an automated and scalable manner, helping Chinese clients enter overseas markets and overseas clients expand into China, achieving global traffic and client coverage, with Mintegral significantly improving delivery efficiency through programmatic models, assisting over 10,000 global advertisers and 100,000 leading apps in acquiring high-quality users - Since 2015, the company has incubated the AI-driven Mintegral platform, connecting global users in an automated and scalable manner to achieve global traffic and client coverage, becoming the primary vehicle for the company's second development phase[21] - The Mintegral platform, through its programmatic delivery model, achieves "fully automated" ad creation, delivery, and attribution, significantly improving delivery efficiency and assisting over 10,000 global advertisers and over 100,000 apps in acquiring high-quality users[22] Phase Three: SaaS Tool Matrix — Achieving "Ad-tech+Mar-tech" Business Growth In 2019, the company launched its 'SaaS Tool Matrix' strategy, integrating Ad-tech and Mar-tech capabilities to cover core developer scenarios from analytics, user growth, monetization, operational efficiency, to cloud cost optimization; through strategic acquisitions like GameAnalytics, launching Heat Cloud Data, and developing tools like XMP and Playturbo, the company aims to help enterprise clients leverage data, optimize marketing solutions, and achieve high-quality growth - Since 2019, the company has built a 'SaaS Tool Matrix' strategy, integrating Ad-tech and Mar-tech capabilities to cover core scenarios across the developer lifecycle, achieving high-quality growth[23] - Strategic acquisition of GameAnalytics enhanced game data insights, Heat Cloud Data provides user acquisition attribution and marketing data analytics, XMP improves cross-channel delivery efficiency, and Playturbo enables automated creative production[24] Key Business Segments Mobvista's revenue primarily stems from its Ad-tech segment, centered around Mintegral, contributing over 90% of net revenue, while the Mar-tech segment is still in early product development, with Ad-tech encompassing programmatic (Mintegral) and non-programmatic advertising, and Mar-tech including GameAnalytics and Heat Cloud Data - The company's revenue primarily comes from the Ad-tech segment (centered on Mintegral), contributing over 90% of net revenue; the Mar-tech segment is still in the early stages of product development[25] Ad-tech Segment: Programmatic Advertising Platform Mintegral Mintegral is a leading global programmatic advertising technology platform, offering one-stop programmatic ad delivery and monetization services by connecting a vast pool of long-tail app traffic; its business model is performance-based, with gross profit influenced by server costs and platform algorithm efficiency, serving clients and traffic globally, primarily in the gaming vertical with active expansion into non-gaming categories, leveraging SDK integration, algorithm iteration, and high-ROI delivery to form a flywheel effect and strengthen its competitive advantage, demonstrating economies of scale and operating leverage with continuous revenue growth and improved gross margins - Mintegral is a leading global programmatic advertising technology platform, providing one-stop programmatic ad delivery and traffic monetization services, primarily generating revenue through performance-based advertising fees[26][27] - Mintegral's gross profit primarily depends on server costs and platform algorithm-related resource costs, with gross margin expected to increase as scale expands and algorithm efficiency improves[28] - Mintegral's clients are spread across approximately 130 countries and regions globally, primarily in the gaming vertical (73.8%), with active expansion into non-gaming verticals (26.2%)[29] - Mintegral's traffic reaches over 250 countries and regions worldwide, with over 99% from overseas, primarily gaming vertical traffic, while also possessing mobile traffic in verticals such as tools, social, content, and lifestyle services[30] - Mintegral accumulated clients through initial non-programmatic advertising business, attracted traffic with developer incentive programs, and entered the European and American gaming ecosystem through the acquisition of GameAnalytics, forming a scaled traffic ecosystem and data closed-loop[33] - Mintegral forms a positive flywheel effect through SDK integration, algorithm iteration, and high-ROI delivery, continuously strengthening its competitive advantage, and possesses a top-tier R&D team, with its technological capabilities continuously improving[33][39] - The Mintegral platform demonstrates economies of scale and operating leverage, with sustainable revenue growth, improved gross margins, and continuously optimized sales, general & administrative, and R&D expense ratios[40][41][42] Ad-tech Segment: Non-Programmatic Advertising Platform The non-programmatic advertising business is performance-oriented, covering global long-tail media through an ad network alliance to provide advertisers with rapid, scaled user acquisition, earning traffic arbitrage; this business, the company's origin, maintains a leading industry position, serves as a stable profit source for the group, and strongly synergizes with Mintegral - The non-programmatic advertising business is performance-oriented, covering global long-tail media through an ad network alliance to provide user acquisition services for advertisers, serving as a stable profit source for Mobvista[47] - This business synergizes with Mintegral, offering clients both programmatic and non-programmatic traffic delivery methods[47] Mar-tech Segment: GameAnalytics GameAnalytics, a SaaS-based in-app data analytics tool under Mobvista, is one of the world's largest data analytics platforms for mobile, Roblox, PC, and VR games, providing deep insights, LiveOps tools, data management, and app market intelligence to game studios and publishers; it charges monthly subscription fees and additional fees based on Monthly Active Users (MAU), strategically consolidating the group's core competitiveness in game advertising - GameAnalytics is one of the world's largest SaaS-based mobile game data analytics platforms, providing deep insights, LiveOps tools, data management, and app market intelligence[48] - GA charges monthly subscription fees and additional fees based on MAU, which is strategically significant for consolidating the group's core competitiveness in game advertising, reaching potential clients, and securing high-quality advertising resources[49][53] Mar-tech Segment: Heat Cloud Data Heat Cloud Data, a comprehensive product and service upgrade based on Heat Cloud Data, is a third-party platform focused on mobile ad delivery performance monitoring and data analysis, offering SaaS tools for data collection, mining, delivery data analysis, user data management, intelligent creative analysis, and cloud computing resource optimization; its main products are SaaS tools, with pricing primarily based on usage and subscription models - Heat Cloud Data is a third-party platform focused on mobile ad delivery performance monitoring and data analysis, providing SaaS tools for data collection, mining, analysis, management, and optimization[54] - Heat Cloud Data's main products are SaaS tools, with pricing models including usage-based fees and subscriptions[54] Business Review and Outlook Since 2025, the group's fundamentals have continuously improved, with significant development in AI and machine learning-driven smart bidding systems; Mintegral launched Target ROAS, Hybrid ROAS, IAP ROAS, and Target CPE, upgrading user acquisition from shallow installation bidding to ROI-based smart bidding, with smart bidding products contributing over 80% of Mintegral's total transaction volume, driving revenue and profit growth, while ad-tech revenue and net revenue saw significant YoY growth, and mar-tech revenue slightly increased YoY - The group's fundamentals continue to improve, with significant development in AI and machine learning-driven smart bidding systems, and Mintegral has launched smart bidding features such as Target ROAS, Hybrid ROAS, IAP ROAS, and Target CPE[58][59] - Smart bidding products contribute over 80% of Mintegral's total transaction volume, serving as the core driver for Mintegral's revenue and profit growth[60] H1 2025 Business Revenue Growth | Metric | H1 2025 YoY Growth | | :--- | :--- | | Mintegral Revenue | 48.6% | | Non-Programmatic Advertising Revenue | 24.6% | | Ad-tech Net Revenue | 55.3% | | Mar-tech Revenue | 1.1% | Committed to Becoming a Growth Hub for Small and Medium-sized Developers The company's mission has evolved to become a 'Growth Hub' for small and medium-sized developers, leveraging its SaaS toolset to address global expansion challenges across various regions and stages, filling gaps in global market resources, experience, and capabilities; Mintegral's Ads SDK integrated developer count surged from under 20,000 in early 2022 to over 110,000 by June 2025, significantly increasing penetration - The company's mission has upgraded to become a 'Growth Hub' for small and medium-sized developers, helping them solve global growth challenges through a SaaS toolset[61] - Mintegral's Ads SDK integrated developer count increased from less than 20,000 in early 2022 to over 110,000 by the end of June 2025, significantly boosting penetration[61] Further Refine Smart Bidding System The company continues to refine its smart bidding system, expanding from shallow user behavior bidding to deep event-based smart bidding products to meet the needs of mid-to-heavy games and other verticals; Mintegral has launched Target ROAS, Target CPE, Hybrid ROAS, and IAP ROAS optimization strategies, making smart bidding a mainstream choice for advertisers on the platform, helping achieve breakthroughs in mid-to-heavy games and non-gaming verticals, and expanding growth potential - The company continues to refine its smart bidding system, expanding from shallow user behavior bidding to deep event-based smart bidding to meet the needs of mid-to-heavy games and other verticals[62] - Mintegral has launched Target ROAS, Target CPE, Hybrid ROAS, and IAP ROAS optimization strategies, making smart bidding a mainstream choice that helps the platform achieve breakthroughs in mid-to-heavy games and non-gaming verticals, expanding its growth ceiling[63] Gaming Category Revenue Steady Growth, Non-Gaming Category Rapid Growth During the reporting period, gaming category revenue reached USD 661.5 million, a 51.7% YoY increase, contributing 73.8% to Mintegral's total revenue, primarily driven by hybrid monetization games; non-gaming category revenue reached USD 235.5 million, growing 40.6% YoY, thanks to the smart bidding system's development, achieving breakthroughs in mid-to-heavy games, e-commerce, and tool categories, with the Mintegral platform seeing simultaneous revenue and profit growth Mintegral Business Revenue by Mobile Application Type (H1 2025 vs H1 2024) | Application Type | H1 2025 Revenue (USD thousand) | H1 2024 Revenue (USD thousand) | YoY Change | H1 2025 Share | | :--- | :--- | :--- | :--- | :--- | | Gaming | 661,538 | 436,208 | 51.7% | 73.8% | | Non-Gaming | 235,500 | 167,464 | 40.6% | 26.2% | | Total | 897,038 | 603,672 | 48.6% | 100.0% | - Hybrid monetization games are the primary driver for Mintegral's gaming category revenue, while the non-gaming category has achieved breakthroughs in mid-to-heavy games, e-commerce, and tool verticals, benefiting from the development of the smart bidding system[64] Client Testimonials The report showcases strong client testimonials from Gamehaus, ReelShort, and VigaFun, highlighting Mintegral platform and XMP tool's exceptional performance in enhancing user engagement, retention, ROI optimization, delivery efficiency, and user acquisition quality - Gamehaus praised Mintegral's Target CPE strategy for significantly improving paid user acquisition efficiency and ROI stability[78] - ReelShort commended the XMP cross-channel delivery tool for significantly reducing repetitive tasks and boosting team collaboration efficiency by 30%[83] - VigaFun praised Mintegral's machine learning and algorithm optimization capabilities for helping them identify and acquire target user groups in a short period, achieving high retention rates and rapid break-even[87] Future Strategy: Committed to Building an Ad-tech and Mar-tech Ecosystem The company's future strategy focuses on building a comprehensive Ad-tech and Mar-tech ecosystem, aiming to become a "Growth Hub" for developers by enhancing the Mintegral platform, upgrading Mar-tech products, maintaining global expansion, prioritizing data privacy, and embracing AI trends - The company's vision is to become a 'Growth Hub' for developers, helping small and medium-sized developers solve problems related to promotion, monetization, data insights, and cloud cost optimization through its Ad-tech and Mar-tech ecosystem[65] Continuously Strengthening Mintegral Platform's Competitive Advantage in Ad-tech Mintegral will enhance its competitive edge in Ad-tech by integrating algorithms with creative optimization, increasing investment in dynamic creative optimization for personalized ad experiences, improving user interaction and acquisition efficiency, and continuously upgrading its deep learning-based smart bidding system to meet hybrid monetization and cross-category (e.g., e-commerce, tools) delivery needs, solidifying its leadership in casual games and expanding into more verticals - Mintegral will enhance user interaction and acquisition efficiency by leveraging algorithm-creative synergy, increasing investment in dynamic creative optimization to achieve personalized creative displays[66] - The company will continuously enhance its algorithm capabilities to build a deep learning-based smart bidding system, meeting the delivery needs of hybrid monetization and cross-categories (e.g., e-commerce, tools)[66][67] Comprehensively Upgrading Mar-tech Product System, Enhancing Mobvista's Service Capabilities in Mar-tech The company will enrich its Mar-tech product matrix, enhance ad performance monitoring capabilities, achieve closed-loop user acquisition services, and use data to feed back into the Mintegral platform for optimization and iteration; simultaneously, it will promote SaaS product global expansion, further implementing its globalization strategy to provide superior and more cost-effective SaaS product services to global clients - The company will enrich its Mar-tech product matrix, enhance ad performance monitoring capabilities, achieve closed-loop user acquisition services, and optimize the Mintegral platform through data feedback[68] - The company will promote SaaS product global expansion, further implementing its globalization strategy to provide superior and more cost-effective SaaS product services to global clients[68] Adhering to Globalization Strategy Mobvista consistently pursues a global platform strategy, ensuring its technology serves all global markets; with years of deep cultivation in overseas markets, over 99% of its traffic (reached devices) originates from abroad, and the company will continue to strengthen its brand image in the Asia-Pacific region while implementing localized strategies in EMEA and the Americas to actively expand market share - The company adheres to a global platform strategy, with over 99% of its traffic originating from overseas, and will continue to strengthen its brand image in the Asia-Pacific region while implementing localized strategies in EMEA and the Americas[69] Committed to Data and Privacy Protection Mobvista prioritizes data security and privacy protection, with its algorithms primarily relying on contextual information modeling and not collecting personally identifiable data; the Mintegral platform has obtained multiple industry-recognized privacy certifications (e.g., SOC2 Type1/Type2, SOC3, ISO27001, kidSAFE + COPPA), continuously validating its products and technology to build a moat around user data privacy, safeguard user rights, and uphold these as pillars of sound corporate governance and long-term client trust - The company prioritizes data security and privacy protection, with algorithms primarily relying on contextual information modeling and not collecting personally identifiable data[70] - The Mintegral platform has obtained multiple industry-recognized privacy certifications (e.g., SOC2 Type1/Type2, SOC3, ISO27001, kidSAFE + COPPA), safeguarding user rights[71] Embracing the AI Megatrend Mobvista actively embraces the industry transformation driven by AI, with deep strategic deployments across marketing technology products, daily R&D and operations, and advertising technology; it leverages LLM/AIGC to reconstruct marketing services, with Playturbo supporting AI voiceover, translation, and image generation for creative automation, introduces large model technology to build a DevOps Copilot system and launches the Autopilot system MaxAgent for R&D operations, and utilizes machine learning in Mintegral for personalized and intelligent ad recommendations, upgrading to an ROI-based smart bidding model - The company actively embraces the AI megatrend, with deep strategic deployments across marketing technology products, daily R&D and operations, and advertising technology[72][73][74] - Marketing technology products leverage LLM/AIGC to reconstruct services, with Playturbo supporting AI voiceover, translation, and image generation for creative automation[73] - In R&D and operations, large model technology is introduced to build a DevOps Copilot system, and the Autopilot system MaxAgent has been launched[74] - In advertising technology, Mintegral utilizes machine learning to achieve personalized and intelligent ad recommendations, upgrading to an ROI-based smart bidding model[74] Financial Performance Analysis This section analyzes the company's financial performance, covering revenue, cost of sales, gross profit, operating expenses, operating profit, cash flow, and capital structure H1 2025 Revenue Overview | Metric | 2025 (USD thousand) | 2024 (USD thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 938,111 | 638,287 | 47.0% | | Ad-tech Revenue | 929,317 | 629,588 | 47.6% | | Mar-tech Revenue | 8,794 | 8,699 | 1.1% | - The group's revenue primarily comes from the Ad-tech business, accounting for 99.1% of total revenue[93] Revenue For the six months ended June 30, 2025, group revenue reached USD 938.1 million, a 47.0% YoY increase, primarily driven by the Ad-tech business, which accounted for 99.1% of total revenue; Mar-tech revenue saw a slight 1.1% YoY increase, while programmatic advertising (Mintegral) revenue surged 48.6% YoY, and non-programmatic advertising revenue rose 24.6% YoY, with Mintegral's revenue predominantly from gaming (73.8%) and rapidly growing non-gaming categories, and Ad-tech revenue exhibiting a diversified regional structure, with Asia-Pacific (excluding Singapore) being the largest contributor, and statistics and analytics being the highest revenue contributor within Mar-tech Revenue Model Ad-tech business revenue is typically performance-based, charged to clients for marketing promotion effects (e.g., user downloads, installations, registrations, client-set ROAS targets, and subsequent user behaviors); Mar-tech businesses (GameAnalytics, Heat Cloud Data) use monthly subscription fees, additional MAU usage fees, usage-based fees, and subscription models - Ad-tech business revenue is charged based on marketing promotion effectiveness, while Mar-tech businesses (GameAnalytics, Heat Cloud Data) adopt subscription fees, usage-based fees, and other models[90][91][92] Revenue Recognition Principles Ad-tech business revenue is generally recognized on a gross basis as the company is primarily responsible for performance delivery; for subscription-based or usage-based software in Mar-tech, revenue is typically recognized proportionally or by usage over the contract period, while SpotMax revenue is recognized based on the actual amount of cloud computing resources managed for clients on the platform - Ad-tech business revenue is generally recognized on a gross basis; Mar-tech businesses (subscription-based, usage-based, SpotMax) recognize revenue proportionally/by usage or based on actual managed resource volume[94] Revenue by Service Type During the reporting period, Ad-tech business revenue was USD 929.3 million, a 47.6% YoY increase, accounting for 99.1% of total group revenue; Mar-tech business revenue was USD 8.8 million, a 1.1% YoY increase, accounting for 0.9% of total group revenue, indicating the group's revenue is primarily driven by Ad-tech H1 2025 Revenue by Service Type | Service Type | 2025 (USD thousand) | 2025 Share | 2024 (USD thousand) | 2024 Share | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Ad-tech Revenue | 929,317 | 99.1% | 629,588 | 98.6% | 47.6% | | Mar-tech Revenue | 8,794 | 0.9% | 8,699 | 1.1% | 1.1% | | Total | 938,111 | 100.0% | 638,287 | 100.0% | 47.0% | Ad-tech Net Revenue During the reporting period, the group recorded Ad-tech business revenue of USD 929.3 million and Ad-tech net revenue of USD 245.1 million, with net revenue defined as adjusted revenue after deducting costs allocated to traffic publishers, not measured under IFRS standards Ad-tech Net Revenue (H1 2025 vs H1 2024) | Metric | H1 2025 (USD thousand) | H1 2024 (USD thousand) | | :--- | :--- | :--- | | Ad-tech Revenue | 929,317 | 629,588 | | Ad-tech Net Revenue | 245,109 | 157,837 | - Net revenue is defined as adjusted revenue after deducting costs allocated to traffic publishers, not measured under IFRS standards[95] Ad-tech Revenue by Business Segment During the reporting period, Ad-tech business revenue increased 47.6% YoY to USD 929.3 million, with programmatic advertising revenue from Mintegral at USD 897.0 million, accounting for 96.5% of Ad-tech revenue and growing 48.6% YoY; non-programmatic advertising revenue was USD 32.3 million, accounting for 3.5% of Ad-tech revenue and increasing 24.6% YoY, highlighting programmatic business as a key development focus and significant profit source for the group Ad-tech Revenue by Business Segment (H1 2025 vs H1 2024) | Business Segment | 2025 (USD thousand) | 2025 Share | 2024 (USD thousand) | 2024 Share | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Programmatic Advertising Business | 897,038 | 96.5% | 603,672 | 95.9% | 48.6% | | Non-Programmatic Advertising Business | 32,279 | 3.5% | 25,916 | 4.1% | 24.6% | | Total Ad-tech Revenue | 929,317 | 100.0% | 629,588 | 100.0% | 47.6% | - Programmatic advertising business (Mintegral) is a key development focus and significant profit source for the group, while non-programmatic advertising business also serves as a stable profit source[97] Key Financial Data for Programmatic Advertising Business Mintegral Platform During the reporting period, the Mintegral platform recorded revenue of USD 897.0 million, a 48.6% YoY increase from 2024, with Q2 2025 revenue at USD 476.3 million, showing a 48.8% YoY and 13.2% QoQ change; the group's mid-term strategic goal of platform scale growth and multi-vertical expansion is gradually yielding results Mintegral Platform Business Revenue (Quarterly and Semi-Annual) | Period | Revenue (USD thousand) | QoQ Change | YoY Change | | :--- | :--- | :--- | :--- | | H1 2025 | 897,038 | 6.9% | 48.6% | | Q2 2025 | 476,281 | 13.2% | 48.8% | | Q1 2025 | 420,757 | (3.7%) | 48.4% | | H2 2024 | 839,421 | 39.1% | 63.8% | | Q4 2024 | 436,910 | 8.5% | 69.9% | | Q3 2024 | 402,511 | 25.7% | 57.6% | - The group's mid-term strategic goal of platform scale growth and multi-vertical expansion is gradually yielding results[99] Mintegral Business Revenue by Mobile Application Type During the reporting period, Mintegral's gaming category revenue reached USD 661.5 million, a 51.7% YoY increase, accounting for 73.8% of Mintegral's business revenue; non-gaming category revenue reached USD 235.5 million, growing 40.6% YoY, accounting for 26.2%, as the group continues to enhance scenario coverage, actively expand into diverse verticals, and refine operations for mature application types, laying a foundation for long-term development Mintegral Business Revenue by Mobile Application Type (H1 2025 vs H1 2024) | Application Type | 2025 (USD thousand) | 2025 Share | 2024 (USD thousand) | 2024 Share | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Gaming | 661,538 | 73.8% | 436,208 | 72.2% | 51.7% | | Non-Gaming | 235,500 | 26.2% | 167,464 | 27.8% | 40.6% | | Total Mintegral Platform Business Revenue | 897,038 | 100.0% | 603,672 | 100.0% | 48.6% | - The group continues to enhance scenario coverage, actively expand into diverse verticals, and refine operations for mature application types, deepening its competitive moat[100] Ad-tech Revenue by Region During the reporting period, Ad-tech business revenue exhibited a diversified regional structure, spanning approximately 130 countries and regions globally; Asia-Pacific (excluding Singapore) contributed the most with USD 433.4 million, a 50.7% YoY increase, accounting for 46.6%; Singapore revenue was USD 98.6 million, up 83.7% YoY, accounting for 10.6%; and other regions contributed USD 397.3 million, growing 37.8% YoY, accounting for 42.8% Ad-tech Revenue by Region (H1 2025 vs H1 2024) | Region | 2025 (USD thousand) | 2025 Share | 2024 (USD thousand) | 2024 Share | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Singapore | 98,627 | 10.6% | 53,693 | 8.5% | 83.7% | | Asia-Pacific (excluding Singapore) | 433,354 | 46.6% | 287,642 | 45.7% | 50.7% | | Other Regions | 397,336 | 42.8% | 288,253 | 45.8% | 37.8% | | Total Ad-tech Revenue | 929,317 | 100.0% | 629,588 | 100.0% | 47.6% | - Ad-tech business revenue has a diversified regional structure, spanning approximately 130 countries and regions globally[104] Mar-tech Revenue by Type During the reporting period, Mar-tech business revenue was categorized into statistics and analytics, creative management, ad delivery services, and computing power optimization; statistics and analytics generated the highest revenue at USD 3.594 million, accounting for 40.9% of total Mar-tech business revenue Mar-tech Revenue by Type (H1 2025) | Revenue Type | Revenue (USD thousand) | Share | | :--- | :--- | :--- | | Statistics and Analytics | 3,594 | 40.9% | | Creative Management | 3,352 | 38.1% | | Ad Delivery Services | 1,558 | 17.7% | | Computing Power Optimization | 290 | 3.3% | | Total | 8,794 | 100.0% | Cost of Sales During the reporting period, cost of sales increased 45.3% YoY to USD 737.0 million, primarily due to higher traffic and server costs from the expanded Ad-tech business and increased amortization of capitalized intangible assets; Ad-tech business costs accounted for 79.0% of its revenue, while Mar-tech business costs accounted for 28.2% of its revenue Cost of Sales (H1 2025 vs H1 2024) | Cost Type | 2025 (USD thousand) | 2025 Share | 2024 (USD thousand) | 2024 Share | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Ad-tech Business | 734,502 | 79.0% | 505,248 | 80.2% | 45.4% | | - Traffic Costs | 684,208 | 73.6% | 471,751 | 74.9% | 45.0% | | - Other Business Costs | 50,294 | 5.4% | 33,497 | 5.3% | 50.1% | | Mar-tech Business | 2,484 | 28.2% | 1,838 | 21.1% | 35.1% | | Total | 736,986 | 78.6% | 507,086 | 79.4% | 45.3% | - The increase in cost of sales was primarily due to higher traffic and server costs resulting from the expanded Ad-tech business, as well as increased amortization of intangible assets[107] Gross Profit and Gross Margin During the reporting period, the group recorded a gross profit of USD 201.1 million, a 53.3% YoY increase, with a gross margin of 21.4%, up from 20.6% in H1 2024; Ad-tech business gross profit increased 56.7% YoY to USD 194.8 million, with a gross margin of 21.0%, while Mar-tech business gross profit was USD 6.3 million, with a gross margin of 71.8% Gross Profit and Gross Margin (H1 2025 vs H1 2024) | Business Type | 2025 Gross Profit (USD thousand) | 2025 Gross Margin | 2024 Gross Profit (USD thousand) | 2024 Gross Margin | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Ad-tech Business | 194,815 | 21.0% | 124,340 | 19.7% | 56.7% | | Mar-tech Business | 6,310 | 71.8% | 6,861 | 78.9% | (8.0%) | | Total | 201,125 | 21.4% | 131,201 | 20.6% | 53.3% | Selling and Marketing Expenses During the reporting period, selling and marketing expenses increased 22.8% YoY to USD 35.1 million, primarily due to higher bidding fees as Mintegral platform revenue expanded, including USD 0.1 million in share-based compensation - Selling and marketing expenses increased 22.8% YoY to USD 35.1 million, primarily due to higher bidding fees resulting from the expanded revenue scale of the Mintegral platform[112] - Selling and marketing expenses include USD 0.1 million in share-based compensation[114] Research and Development Expenses During the reporting period, expensed R&D increased 39.0% YoY to USD 87.3 million, mainly due to higher model training costs from aggressive development of the smart bidding system; total R&D expenses (expensed and capitalized) were USD 113.9 million, up 17.8% YoY, including USD 2.3 million in share-based compensation - Expensed R&D increased 39.0% YoY to USD 87.3 million, primarily due to higher model training costs from aggressive development of the smart bidding system[115] - Total R&D expenses (expensed + capitalized) were USD 113.9 million, up 17.8% YoY, including USD 2.3 million in share-based compensation[115] General and Administrative Expenses During the reporting period, general and administrative expenses increased 20.0% YoY to USD 35.4 million, primarily due to an increase in expected credit loss provisions - General and administrative expenses increased 20.0% YoY to USD 35.4 million, primarily due to an increase in expected credit loss provisions[116] Operating Expenses During the reporting period, total operating expenses were USD 167.6 million, comprising USD 118.0 million in variable expenses, USD 46.0 million in fixed expenses (excluding share-based compensation), and USD 3.6 million in share-based compensation Operating Expenses (H1 2025 vs H1 2024) | Expense Type | June 30, 2025 (USD thousand) | June 30, 2024 (USD thousand) | | :--- | :--- | :--- | | Variable Expenses | 117,977 | 84,549 | | Fixed Expenses (excluding share-based compensation) | 46,023 | 43,888 | | Share-based compensation | 3,634 | 4,239 | | Total | 167,634 | 132,676 | Operating Profit During the reporting period, operating profit was USD 46.9 million, a significant 254.3% YoY increase; excluding the impact of depreciation and amortization, share-based compensation, one-off loss from discontinuing certain non-programmatic businesses, arbitration-related fees for Heat Cloud Data, foreign exchange loss/(gain), and fair value gain/(loss) on financial assets measured at fair value through profit or loss, adjusted EBITDA increased 41.0% YoY to USD 88.7 million Operating Profit (H1 2025 vs H1 2024) | Metric | 2025 (USD thousand) | 2024 (USD thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Profit | 46,916 | 13,243 | 254.3% | | Adjusted EBITDA | 88,681 | 62,881 | 41.0% | Quarterly Net Profit/(Loss), Adjusted EBITDA Net profit for Q2 2025 was USD 12.4 million, compared to USD 19.9 million in Q1; Adjusted EBITDA for Q2 2025 was USD 47.0 million, up from USD 41.7 million in Q1, showing a continuous growth trend Quarterly Net Profit/(Loss) and Adjusted EBITDA | Period | Net Profit/(Loss) (USD thousand) | Adjusted EBITDA (USD thousand) | | :--- | :--- | :--- | | June 30, 2025 | 12,402 | 46,961 | | March 31, 2025 | 19,882 | 41,720 | | December 31, 2024 | (2,369) | 41,104 | | September 30, 2024 | 8,843 | 34,269 | | June 30, 2024 | 183 | 32,184 | | March 31, 2024 | 7,154 | 30,697 | Net Cash Flow from Operating Activities During the reporting period, net cash flow from operating activities was USD 83.9 million, a 29.3% YoY decrease, primarily due to the company's proactive adjustment of working capital management from a tight model to a normalized strategy for sustainable growth, adopting more flexible payment arrangements to strengthen client and supplier relationships and enhance developer satisfaction and market competitiveness Net Cash Flow from Operating Activities (H1 2025 vs H1 2024) | Metric | 2025 (USD thousand) | 2024 (USD thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 83,895 | 118,734 | (29.3%) | - The decrease in operating cash flow was due to the company's proactive adjustment of working capital management strategy, adopting more flexible payment arrangements to strengthen cooperative relationships and enhance market competitiveness[121] Finance Costs During the reporting period, the group's finance costs decreased 42.2% YoY to USD 2.3 million Finance Costs (H1 2025 vs H1 2024) | Metric | 2025 (USD thousand) | 2024 (USD thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Finance Costs | 2,297 | 3,976 | (42.2%) | Income Tax During the reporting period, the group recorded an income tax expense of USD 8.8 million, compared to USD 2.0 million in H1 2024 Income Tax Expense (H1 2025 vs H1 2024) | Metric | 2025 (USD thousand) | 2024 (USD thousand) | | :--- | :--- | :--- | | Income Tax Expense | 8,781 | 2,031 | Profit Attributable to Equity Holders of the Company for the Period During the reporting period, profit attributable to equity holders of the company was USD 32.3 million, a significant 248.4% YoY increase from USD 9.3 million in H1 2024 Profit Attributable to Equity Holders of the Company (H1 2025 vs H1 2024) | Metric | 2025 (USD thousand) | 2024 (USD thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Profit Attributable to Equity Holders of the Company | 32,284 | 9,267 | 248.4% | Other Financial Information (Non-IFRS Measures) During the reporting period, the group's Adjusted EBITDA was USD 88.7 million, a 41.0% YoY increase, and adjusted net profit was USD 37.9 million, a 219.7% YoY increase; these non-IFRS measures supplement IFRS financial statements to better reflect operating performance by excluding items deemed non-indicative by management Non-IFRS Measures (H1 2025 vs H1 2024) | Metric | 2025 (USD thousand) | 2025 Share | 2024 (USD thousand) | 2024 Share | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Revenue | 253,903 | 27.1% | 166,536 | 26.1% | 52.5% | | Operating Profit | 46,916 | 5.0% | 13,243 | 2.1% | 254.3% | | EBITDA | 83,941 | 8.9% | 51,065 | 8.0% | 64.4% | | Adjusted EBITDA | 88,681 | 9.5% | 62,881 | 9.9% | 41.0% | | Profit for the Period | 32,284 | 3.4% | 7,337 | 1.1% | 340.0% | | Adjusted Net Profit | 37,854 | 4.0% | 11,842 | 1.9% | 219.7% | - Non-IFRS measures are used to supplement IFRS statements, providing a better comparison of operating performance across different periods by excluding the impact of specific items[126] Capital Structure and Gearing Ratio As of June 30, 2025, the company's authorized share capital was USD 100 million, with 1,574,154,164 ordinary shares issued; total assets were USD 822.2 million, total liabilities were USD 564.7 million, and the gearing ratio was 68.7%, lower than 72.7% as of December 31, 2024, with the group's primary capital management objective being to ensure continuous operation, provide shareholder returns through appropriate product pricing, and obtain financing at reasonable costs - As of June 30, 2025, the company had 1,574,154,164 ordinary shares issued[130] Gearing Ratio (June 30, 2025 vs December 31, 2024) | Metric | June 30, 2025 (USD thousand) | December 31, 2024 (USD thousand) | | :--- | :--- | :--- | | Total Assets | 822,200 | 814,700 | | Total Liabilities | 564,700 | 592,300 | | Gearing Ratio | 68.7% | 72.7% | - The group's capital management objective is to ensure continuous operation, providing returns to shareholders through reasonable pricing and financing[130] Liquidity and Financial Resources The company's cash requirements are primarily met by shareholder contributions, cash generated from operations, and bank loans; as of June 30, 2025, cash and cash equivalents were USD 139.1 million, a decrease from USD 167.8 million as of December 31, 2024 Cash and Cash Equivalents (June 30, 2025 vs December 31, 2024) | Metric | June 30, 2025 (USD thousand) | December 31, 2024 (USD thousand) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 139,147 | 167,817 | Capital Expenditure During the reporting period, total capital expenditure was USD 26.8 million, primarily for intangible assets and development expenditure (USD 26.6 million), representing a 21.2% YoY decrease Capital Expenditure (H1 2025 vs H1 2024) | Category | 2025 (USD thousand) | 2024 (USD thousand) | | :--- | :--- | :--- | | Property, Plant and Equipment | 151 | 102 | | Intangible Assets and Development Expenditure | 26,644 | 33,907 | | Total | 26,795 | 34,009 | Other Information This section covers other important information including significant investments, pledged assets, contingent liabilities, employee and remuneration policies, foreign exchange risk management, major clients and suppliers, interim dividends, corporate governance, and post-reporting period events Significant Investments Held, Major Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures During the reporting period, the group held no significant investments, nor did it undertake any major acquisitions or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the group held no significant investments, nor did it undertake any major acquisitions or disposals of subsidiaries, associates, or joint ventures[135] Pledged Assets of the Group As of June 30, 2025, the group had no assets pledged to any individuals or financial institutions, except for restricted cash of USD 5.2 million related to bank borrowings and other bank deposits - As of June 30, 2025, the group had no other pledged assets apart from restricted cash of USD 5.2 million[136] Major Investments or Future Major Investment Plans As of June 30, 2025, the group held no major investments and had no specific plans for future major investments or capital assets - As of June 30, 2025, the group held no major investments and had no specific plans for future major investments or capital assets[137] Contingent Liabilities and Financial Guarantees As of June 30, 2025, the group had not granted any contingent liabilities or financial guarantees to third parties - As of June 30, 2025, the group had not granted any contingent liabilities or financial guarantees to third parties[138] Employees and Remuneration Policy As of June 30, 2025, the group had 667 full-time employees globally, a decrease from 711 as of December 31, 2024, primarily due to continuous AI empowerment and strategic team streamlining, significantly improving overall human efficiency; the group has systematic recruitment procedures, offers competitive benefits and training opportunities, and determines employee salaries based on market conditions, individual performance, qualifications, and experience, with performance bonuses and share awards based on appraisal ratings - As of June 30, 2025, the group had 667 full-time employees globally, a decrease from 711 as of December 31, 2024, primarily due to continuous AI empowerment and strategic team streamlining, which significantly improved overall human efficiency[139] - The company provides competitive compensation, benefits, and training, with performance bonuses and share awards determined based on performance appraisals[139] Foreign Exchange Risk Management The group is primarily exposed to currency risk from receivables, payables, and cash balances denominated in currencies other than USD, managing this risk through regular review of foreign exchange exposures; in 2024, the company entered into a partially cancellable foreign exchange forward contract with HSBC Bank (China) Company Limited to reduce hedging costs - The group is primarily exposed to currency risk from balances denominated in currencies other than USD, which is managed through regular review of foreign exchange exposures[140] - In 2024, the company entered into a partially cancellable foreign exchange forward contract with HSBC Bank (China) Company Limited, aiming to reduce hedging costs[140] Major Clients and Suppliers For the six months ended June 30, 2025, the group's top five clients accounted for approximately 10.0% of total revenue, with the largest client contributing 2.6%; the top five suppliers accounted for approximately 19.9% of total purchases, with the largest supplier contributing 4.4%; to the best of the directors' knowledge, no directors, their associates, or any shareholders (owning more than 5% of the company's share capital) held interests in the top five clients and suppliers - During the reporting period, the top five clients accounted for approximately 10.0% of total revenue, with the largest client contributing 2.6%[141] - The top five suppliers accounted for approximately 19.9% of total purchases, with the largest supplier contributing 4.4%[141] - To the best of the directors' knowledge, no directors, their associates, or any shareholders (owning more than 5% of the company's share capital) held interests in the group's top five clients and suppliers[141] Interim Dividend The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[142] Compliance with Corporate Governance Code The group is committed to maintaining high corporate governance standards to protect shareholder interests and enhance corporate value and accountability; the company has adopted the Corporate Governance Code (CGC) set out in Appendix C1 of the Listing Rules of The Stock Exchange of Hong Kong Limited (SEHK) as its own corporate governance code and has voluntarily adopted certain recommended best practices to continuously improve its corporate governance level - The group has adopted the Corporate Governance Code set out in Appendix C1 of the SEHK Listing Rules and has voluntarily adopted certain recommended best practices to continuously enhance its corporate governance standards[143] Model Code The group has adopted the Model Code for Securities Transactions by Directors of Listed Issuers (Model Code) as set out in Appendix C3 of the Listing Rules as its code of conduct for directors' securities transactions; following specific inquiries to all directors, each director confirmed compliance with the Model Code during the reporting period, and no instances of non-compliance by employees who may possess inside information were noted - The group has adopted the Model Code set out in Appendix C3 of the Listing Rules as the code of conduct for directors' securities transactions, and all directors have confirmed compliance[144] Purchase, Sale and Redemption of the Company's Listed Securities During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's shares (including the sale of treasury shares), and the company held no treasury shares at the end of the reporting period - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's shares, and no treasury shares were held at the end of the reporting period[145] Audit Committee The Audit Committee has reviewed the group's adopted accounting principles and practices, discussed financial reporting matters and internal control systems, including the review and approval of the group's unaudited interim results for the six months ended June 30, 2025 - The Audit Committee has reviewed the group's accounting principles, financial reporting matters, and internal control systems, and has reviewed and approved the unaudited interim results for the six months ended June 30, 2025[146] Events After Reporting Period No significant events affecting the group have occurred since the end of the reporting period - No significant events affecting the group have occurred since the end of the reporting period[147] Impact of US Data Protection Act and Response The US 'Protecting Americans' Data from Foreign Adversaries Act' and related regulations have taken effect, potentially imposing stricter compliance requirements on the company's Mintegral and Mar-tech businesses; currently, data access channels remain open, and business operations under the existing regulatory framework have not been substantially affected, but the company is closely monitoring developments and evaluating measures to address potential risks - The US 'Protecting Americans' Data from Foreign Adversaries Act' passed by Congress and related regulatory frameworks have taken effect, potentially subjecting the company's Mintegral and Mar-tech businesses to stricter compliance requirements[148] - Currently, data access channels remain open, and business operations have not been substantially affected under the existing regulatory framework, but the company is closely monitoring geopolitical developments and evaluating measures to address potential risks[148] Publication of 2025 Interim Results and Interim Report This interim results announcement has been published on the SEHK website and the company's website; the interim report for this reporting period will be dispatched to the company's shareholders (upon request) and published on the aforementioned websites in September 2025 - This interim results announcement has been published on the SEHK website and the company's website, and the interim report will be dispatched to shareholders and published in September 2025[149] Interim Financial Statements and Notes This section presents the unaudited interim financial statements and their detailed notes for the six months ended June 30, 2025, including the consolidated statement of profit or loss, statement of comprehensive income, and statement of financial position - This section provides the unaudited consolidated financial statements and their detailed notes for the six months ended June 30, 2025[150][151][153][155] Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, the company reported revenue of USD 938.1 million, gross profit of USD 201.1 million, operating profit of USD 46.9 million, profit for the period of USD 32.3 million, and basic earnings per share of 2.12 US cents Consolidated Statement of Profit or Loss Key Data (H1 2025 vs H1 2024) | Metric | 2025 (USD thousand) | 2024 (USD thousand) | | :--- | :--- | :--- | | Revenue | 938,111 | 638,287 | | Cost of Sales | (736,986) | (507,086) | | Gross Profit | 201,125 | 131,201 | | Selling and Marketing Expenses | (35,103) | (28,585) | | Research and Development Expenses | (87,274) | (62,782) | | General and Administrative Expenses | (35,379) | (29,489) | | Operating Profit | 46,916 | 13,243 | | Profit for the Period | 32,284 | 7,337 | | Basic Earnings Per Share (US cents) | 2.12 | 0.61 | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=49&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20O