蓝港互动(08267) - 2025 - 中期业绩

Announcement Information This section provides disclaimers and highlights the characteristics of the GEM market, emphasizing investment risks and director responsibilities Disclaimer and GEM Characteristics This announcement is issued by HKEX and HKSE, highlighting GEM as a listing platform for SMEs with higher investment risks, urging investors to exercise caution, and confirming directors' full responsibility for the accuracy and completeness of the content - The GEM market is positioned for small and medium-sized companies, entailing higher investment risks and potential for significant market volatility in securities[3] - The company's directors jointly and individually assume full responsibility for the announcement's information, confirming its accuracy, completeness, and absence of misleading or fraudulent content[3] Summary This section provides an unaudited overview of the group's interim financial performance, highlighting revenue decline, profit turnaround, and earnings per share Interim Results (Unaudited) For the six months ended June 30, 2025, the Group's revenue significantly decreased by 51.5% to RMB 28.5 million, and gross profit fell by 63.3% to RMB 5.4 million; however, profit attributable to owners turned from a loss of RMB 12.8 million to a profit of RMB 11.4 million, with earnings per share of RMB 0.032, and no dividend is recommended Overview of Key Financial Indicators for H1 2025 | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 28.5 | 58.8 | -51.5% | | Gross Profit | 5.4 | 14.7 | -63.3% | | Profit/(Loss) Attributable to Owners of the Company | 11.4 (Profit) | (12.8) (Loss) | Turnaround to Profit | | Earnings/(Loss) Per Share (RMB) | 0.032 (Profit) | (0.037) (Loss) | Turnaround to Profit | - The Board does not recommend the payment of any dividend for the six months ended June 30, 2025[6] Interim Condensed Consolidated Financial Statements This section presents the interim condensed consolidated financial statements, including the statement of profit or loss, financial position, changes in equity, and cash flows Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income/(Loss) The Group achieved a profit of RMB 11.067 million in H1 2025, a significant improvement from a loss of RMB 12.088 million in H1 2024, primarily due to reduced operating loss, increased net other operating income, and higher share of profits from equity-accounted investments, despite lower revenue and gross profit Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income/(Loss) (RMB in thousands) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | 28,537 | 58,787 | | Cost of Sales | (23,139) | (44,070) | | Gross Profit | 5,398 | 14,717 | | Selling and Marketing Expenses | (1,160) | (7,679) | | Administrative Expenses | (12,823) | (9,849) | | Research and Development Expenses | (1,512) | (10,252) | | Net Impairment Losses on Receivables and Contract Assets | (413) | (92) | | Other Operating Income/(Expenses) — Net | 16,079 | (526) | | Operating Profit/(Loss) | 5,569 | (13,681) | | Other Gains — Net | 2,504 | 998 | | Finance Income — Net | 205 | 428 | | Share of Profits from Investments Accounted for Using Equity Method | 2,789 | 172 | | Profit/(Loss) Before Income Tax | 11,067 | (12,083) | | Income Tax Expense | — | (5) | | Profit/(Loss) for the Period | 11,067 | (12,088) | | Profit/(Loss) Attributable to Owners of the Company | 11,429 | (12,764) | | Basic Earnings/(Loss) Per Share (RMB) | 0.032 | (0.037) | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets increased to RMB 325.882 million, driven primarily by a significant rise in intangible assets, including cryptocurrencies, while total equity also increased and total liabilities slightly decreased, indicating an improved financial structure Interim Condensed Consolidated Statement of Financial Position (RMB in thousands) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | ASSETS | | | | Non-current assets | 192,088 | 178,888 | | Current assets | 133,794 | 136,640 | | TOTAL ASSETS | 325,882 | 315,528 | | EQUITY AND LIABILITIES | | | | Equity attributable to owners of the Company | 246,408 | 234,647 | | Non-controlling interests | (801) | (439) | | TOTAL EQUITY | 245,607 | 234,208 | | Non-current liabilities | 2,796 | 2,250 | | Current liabilities | 77,479 | 79,070 | | TOTAL LIABILITIES | 80,275 | 81,320 | | TOTAL EQUITY AND LIABILITIES | 325,882 | 315,528 | - Intangible assets increased from RMB 53,906 thousand as of December 31, 2024, to RMB 69,993 thousand as of June 30, 2025, primarily due to the purchase of cryptocurrencies[9][32] Interim Condensed Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, equity attributable to owners of the Company increased from RMB 234.647 million at the beginning of the period to RMB 246.408 million, primarily due to profit for the period and recognition of employee service value, despite other comprehensive losses Changes in Equity Attributable to Owners of the Company (RMB in thousands) | Item | Balance at January 1, 2025 | Profit for the period | Other comprehensive loss | Value of employee services | Balance at June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total | 234,647 | 11,429 | (1,443) | 1,775 | 246,408 | Changes in Equity Attributable to Owners of the Company (RMB in thousands) | Item | Balance at January 1, 2024 | Loss for the period | Other comprehensive income | Contribution by shareholders | Value of employee services | Balance at June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total | 247,230 | (12,764) | 1,061 | 8,980 | 15 | 244,522 | Interim Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, the Group reported a net cash outflow from operating activities of RMB 18.393 million, compared to an inflow in the prior period, with net cash inflow from investing activities of RMB 6.833 million primarily from disposal of intangible assets, resulting in a decrease in cash and cash equivalents to RMB 77.759 million at period-end Interim Condensed Consolidated Statement of Cash Flows (RMB in thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net cash (outflow)/inflow from operating activities | (18,393) | 46,475 | | Net cash inflow/(outflow) from investing activities | 6,833 | (32,330) | | Net cash outflow from financing activities | (273) | (282) | | Net (decrease)/increase in cash and cash equivalents | (11,560) | 13,863 | | Cash and cash equivalents at beginning of period | 89,883 | 77,668 | | Effect of exchange rate changes on cash and cash equivalents | (564) | 472 | | Cash and cash equivalents at end of period | 77,759 | 92,003 | - Net cash inflow from investing activities was primarily due to RMB 55,450 thousand from disposal of intangible assets[13] - Expenditure for the purchase of intangible assets, mainly cryptocurrencies, amounted to RMB 56,358 thousand[13][32] Notes to the Interim Condensed Consolidated Financial Information This section provides detailed notes to the interim condensed consolidated financial information, covering general information, basis of preparation, significant accounting policies, segment information, and specific financial line items 1. General Information BluePort Interactive Group Limited was incorporated in the Cayman Islands in 2007 and listed on GEM in Hong Kong in 2014, primarily engaging in online game development and publishing in China and other countries, as well as film and web series business in China, with unaudited interim financial information presented in RMB - The Company was incorporated as an exempted company in the Cayman Islands on May 24, 2007[14] - The Group's principal activities are online game development and publishing (Game Business) and film and web series business (Film and TV Business)[14] - This interim financial information is unaudited and presented in RMB[15][16] 2. Basis of Preparation The interim financial information is prepared in accordance with IAS 34 "Interim Financial Reporting," does not include all notes required for annual financial statements, and should be read in conjunction with the Company's 2024 annual report and all announcements during this interim reporting period - The interim financial information has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting"[17] - The interim financial information should be read in conjunction with the annual consolidated financial statements in the Company's 2024 annual report[17] 3. Summary of Significant Accounting Policies, Significant Accounting Estimates and Judgements The accounting policies used to prepare the interim financial information are consistent with those in the 2024 annual financial statements, and newly adopted and revised standards are not expected to have a significant impact on the consolidated financial statements, with management's key judgments in applying accounting policies and estimates of uncertainty remaining the same as in the 2024 financial statements - The accounting policies adopted in the preparation of this condensed consolidated interim financial information are consistent with those applied in the annual financial statements for the year ended December 31, 2024[18] - The new and revised standards adopted are not expected to have a significant impact on the consolidated financial statements[19][20] 4. Revenue and Segment Information The Group is divided into two reportable operating segments: Game Business and Film and TV Business, with total revenue for H1 2025 at RMB 28.537 million, a year-on-year decrease, where Game Business contributed RMB 17.163 million and Film and TV Business contributed RMB 11.374 million, with China accounting for 78.9% of revenue and South Korea for 21.1% - The Group is divided into two operating segments: Game Business (online game development and publishing) and Film and TV Business (web series copyright licensing and production)[23] Segment Revenue and Results (RMB in thousands) | Segment | H1 2025 Revenue | H1 2024 Revenue | H1 2025 (Loss)/Profit | H1 2024 (Loss)/Profit | | :--- | :--- | :--- | :--- | :--- | | Game Business | 17,163 | 23,334 | (6,191) | (16,147) | | Film and TV Business | 11,374 | 35,453 | (2,180) | 2,941 | | Total | 28,537 | 58,787 | (8,371) | (13,206) | Revenue by Geographical Region (RMB in thousands) | Region | H1 2025 Revenue | H1 2025 Share (%) | H1 2024 Revenue | H1 2024 Share (%) | | :--- | :--- | :--- | :--- | :--- | | China | 22,512 | 78.9 | 51,028 | 86.8 | | South Korea | 6,025 | 21.1 | 6,984 | 11.9 | | Other overseas countries and regions | — | — | 775 | 1.3 | | Total | 28,537 | 100.0 | 58,787 | 100.0 | 5. Other Operating Income/(Expenses) — Net For the six months ended June 30, 2025, the Group recorded net other operating income of RMB 16.079 million, a significant improvement from a net expense of RMB 0.526 million in the prior period, primarily driven by gains from the disposal of intangible assets (cryptocurrencies) Other Operating Income/(Expenses) — Net (RMB in thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Bad debts recovered | 2 | — | | Government grants | 144 | 195 | | Exchange gains/(losses), net | 393 | (245) | | Gain on disposal of property, plant and equipment | 26 | — | | Gain on disposal of intangible assets | 19,755 | — | | Impairment of intangible assets | (4,236) | (475) | | Others | (5) | (1) | | Total | 16,079 | (526) | - Gain on disposal of intangible assets (RMB 19,755 thousand) was the primary driver for the significant increase in net other operating income[26] 6. Other Gains — Net For the six months ended June 30, 2025, the Group's net other gains amounted to RMB 2.504 million, primarily from fair value gains and disposal gains on financial assets measured at fair value through profit or loss Other Gains — Net (RMB in thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Fair value gains/(losses) on financial assets measured at fair value through profit or loss | 827 | (70) | | Fair value gains on associates measured at fair value through profit or loss | — | 1,068 | | Gain on disposal of financial assets measured at fair value through profit or loss | 1,677 | — | | Total | 2,504 | 998 | 7. Income Tax Expense For the six months ended June 30, 2025, the Group incurred no income tax expense, compared to RMB 5 thousand in the prior period, primarily due to income tax exemption in the Cayman Islands, no taxable profits for Hong Kong subsidiaries, and preferential tax rates or exemptions for certain Chinese subsidiaries Income Tax Expense (RMB in thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Current income tax | — | 2 | | Deferred tax | — | 3 | | Income Tax Expense | — | 5 | - The Company is exempt from income tax in the Cayman Islands, and Hong Kong subsidiaries had no taxable profits[28] - Certain PRC subsidiaries enjoy preferential income tax rates of 12.5% or 15%, or are exempt from income tax[28] 8. Earnings/(Loss) Per Share For the six months ended June 30, 2025, the Group's basic earnings per share were RMB 0.032, a turnaround from a loss of RMB 0.037 per share in the prior period, with diluted earnings per share being the same as basic earnings per share due to the anti-dilutive effect of potential ordinary shares Calculation of Basic Earnings/(Loss) Per Share (RMB in thousands) | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit/(Loss) attributable to owners of the Company | 11,429 | (12,764) | | Weighted average number of ordinary shares in issue (thousands) | 356,980 | 349,688 | | Basic earnings/(loss) per share (RMB per share) | 0.032 | (0.037) | - Diluted earnings per share for the six months ended June 30, 2025, were the same as basic earnings per share, as the exercise of potential ordinary shares would result in a decrease in earnings per share or had an anti-dilutive effect due to a loss[31] 9. Property, Plant and Equipment, Right-of-use Assets and Intangible Assets As of June 30, 2025, intangible assets increased to RMB 69.993 million, primarily due to cryptocurrency purchases, with the Group holding Bitcoin, Ethereum, and Solana, and recognizing an impairment loss of RMB 5.403 million for Ethereum and Solana Changes in Property, Plant and Equipment, Right-of-use Assets and Intangible Assets (RMB in thousands) | Item | Property, plant and equipment | Right-of-use assets | Intangible assets | | :--- | :--- | :--- | :--- | | Balance at January 1, 2025 | 6,606 | — | 53,906 | | Additions | 624 | — | 56,358 | | Depreciation/Amortisation | (1,452) | — | (35) | | Disposals | (563) | — | (35,695) | | Impairment | — | — | (4,236) | | Exchange rate changes | (18) | — | (305) | | Balance at June 30, 2025 | 5,197 | — | 69,993 | - Additions to intangible assets were primarily due to the purchase of cryptocurrencies, with a total cash consideration of US$7,850,000 (approximately RMB 56,358,000)[32] - As of June 30, 2025, an impairment loss of RMB 5,403,000 was recognized for Ethereum and Solana[32] 10. Film Copyrights and Films in Progress As of June 30, 2025, the carrying value of film copyrights and films in progress was RMB 9.881 million, an increase of RMB 0.822 million from the end of 2024 Film Copyrights and Films in Progress (RMB in thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | In progress/Not yet commenced | 9,881 | 9,059 | | Total | 9,881 | 9,059 | Changes in Film Copyrights and Films in Progress (RMB in thousands) | Item | Beginning of period | Additions | Impairment | End of period | | :--- | :--- | :--- | :--- | :--- | | H1 2025 | 9,059 | 822 | — | 9,881 | | H1 2024 | 8,785 | 1,731 | (82) | 10,434 | 11. Financial Assets Measured at Fair Value Through Profit or Loss As of June 30, 2025, total financial assets measured at fair value through profit or loss amounted to RMB 35.098 million, comprising RMB 30.977 million in unlisted securities and RMB 4.121 million in listed securities, with unlisted securities' fair value determined using estimated future cash flows, categorized as Level 3 in the fair value hierarchy Financial Assets Measured at Fair Value Through Profit or Loss (RMB in thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Unlisted securities | 30,977 | 40,294 | | Listed securities | 4,121 | — | | Total | 35,098 | 40,294 | - The fair value of unlisted securities is calculated using the estimated future cash flow method, categorized as Level 3 in the fair value hierarchy[34] 12. Trade Receivables As of June 30, 2025, total trade receivables increased to RMB 8.198 million from RMB 3.753 million at the end of 2024, with credit terms generally not exceeding 60 days, yet a significant portion of receivables are aged over one year Trade Receivables (RMB in thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables | 10,834 | 5,973 | | Impairment allowance | (2,636) | (2,220) | | Total trade receivables | 8,198 | 3,753 | Ageing Analysis of Trade Receivables (RMB in thousands) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 to 60 days | 8,201 | 3,459 | | 61 to 90 days | 86 | 125 | | 91 to 180 days | 206 | 201 | | 181 to 365 days | 270 | 582 | | Over 1 year | 2,071 | 1,606 | | Total | 10,834 | 5,973 | 13. Other Receivables As of June 30, 2025, net current other receivables amounted to RMB 15.087 million, primarily comprising loans to third parties and their interest, receivables from capital reduction of associates, and receivables from disposal of financial assets, with loans to film producers fully impaired Other Receivables (RMB in thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current | | | | Loans to third parties and their interest | 20,963 | 26,104 | | Receivables from capital reduction of associates measured at fair value through profit or loss | 10,035 | 10,035 | | Receivables from disposal of financial assets measured at fair value through profit or loss | 4,471 | — | | Others | 1,757 | 1,837 | | Subtotal | 37,226 | 37,976 | | Impairment allowance | (22,139) | (22,149) | | Net | 15,087 | 15,827 | | Non-current | | | | Others | 827 | 834 | - The original carrying amount of loans to film producers and their interest has been fully impaired[36] 14. Trade and Other Payables As of June 30, 2025, total trade and other payables decreased to RMB 38.837 million from RMB 41.920 million at the end of 2024, primarily comprising accrued expenses and liabilities, salaries and staff welfare payable, and amounts due to related parties Trade and Other Payables (RMB in thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 2,144 | 3,175 | | Accrued expenses and liabilities | 15,623 | 17,095 | | Salaries and staff welfare payable | 15,557 | 15,609 | | Amounts due to related parties | 5,438 | 5,438 | | Other taxes payable | 75 | 603 | | Total | 38,837 | 41,920 | - Trade payables primarily arise from film production and game developer licensing, with credit terms generally not exceeding 30 days[37] 15. Dividends For the six months ended June 30, 2025, and 2024, the Company neither paid nor declared any dividends - For the six months ended June 30, 2025, and 2024, the Company neither paid nor declared any dividends[38] 16. Comparative Figures Certain comparative figures have been reclassified to conform to the current period's presentation - Certain comparative figures have been reclassified to conform to the current period's presentation[39] Management Discussion and Analysis This section provides a comprehensive review of the Group's business performance, financial results, liquidity, capital structure, and risk management strategies Business Review and Outlook In H1 2025, the Group continued its business transformation and innovation, prioritizing Web3 as a strategic focus while stabilizing traditional game and film/TV segments, achieving breakthroughs in Web3 crypto asset investment, the establishment of LK Crypto division, and Element platform development, maintaining stable game operations through AI innovation and refined management, with plans for increased product innovation and market expansion in H2, and advancing film/TV production with youth romance and suspense series, including "BluePort Theater" and "Otherworld" short drama series - The Group positions its Web3 business as a strategic focus while steadily developing its two traditional advantageous segments: gaming and film/TV[40] - The Group will closely monitor Web3 policy details, adjust strategies in a timely manner, and promote the steady growth of its crypto asset investment business within a compliant framework[41] - The Game Business will comprehensively drive business growth and enhance competitiveness by focusing on product innovation, market expansion, and technology upgrades[47] - BluePort Pictures continues to steadily build its product matrix, enriching its reserve of potential IPs and advancing the production of high-quality IP drama series[49] Web3 Business: Strategic Focus on Development, Striving for Breakthroughs in Investment, Applications, and Computing Power Services The Group has established Web3 as a strategic focus, benefiting from improved policies in Hong Kong and the US, demonstrating robust performance in crypto asset investments in H1, holding Bitcoin, Ethereum, and Solana with approximately US$7.5 million in cumulative unrealized gains, establishing the LK Crypto division to oversee Web3 operations, advancing NFT marketplace and multi-chain ecosystem development through the Element platform, and investing in EcoPowX for AI computing and Bitcoin network hash rate solutions - The Group established Web3 business as a strategic focus since 2024, benefiting from policy improvements such as Hong Kong's "Stablecoin Ordinance" and the US "CLARITY Act"[41] - As of the end of the reporting period, the Group held 92.0692 units of Bitcoin, 943.6293 units of Ethereum, and 6,091.7000 units of Solana, with cumulative unrealized gains of approximately US$7.5 million[42] - In July 2025, the Group announced the establishment of the LK Crypto business unit to coordinate all its Web3 and crypto asset-related businesses[43] - The Element platform maintained steady development in the NFT trading market, completed multi-chain ecosystem and infrastructure construction, and expanded into Fungible Token business[44][45] - Investment in EcoPowX, a company focused on providing AI computing and Bitcoin network hash rate solutions through environmentally friendly flare gas power generation[45] Game Business: Leveraging AI Innovation to Drive Efficient Product R&D In H1 2025, the Group's Game Business demonstrated strong resilience through its rich product matrix, refined operations, and AI innovation investment, with existing games operating steadily in overseas markets (especially South Korea), leading to a 5.8% year-on-year increase in overseas revenue, while AI technology was deeply integrated into game R&D and operations to enhance efficiency and user experience, with plans to deepen refined operations, increase new product R&D investment, explore new gameplay and technological applications, and maintain stable cash flow from 15 online games in H2 - In H1, overseas revenue from the Game Business increased by 5.8% year-on-year, demonstrating significant enhancement in brand recognition and user loyalty[46] - The Group deeply integrates AI innovation technology into game R&D and operations, applying it to character modeling, scene generation, personalized recommendations, intelligent customer service, and game balance adjustments[46][47] - As of June 30, 2025, the Group operates 15 online game products, which will continue to maintain stable operations in H2, providing continuous and stable cash flow[48] BluePort Film and TV Business Continues to Steadily Build Product Matrix BluePort Film and TV Business achieved notable success in youth romance drama production and distribution, with "Falling into Our Love" and "Nian Nian Ren Jian Yu" receiving positive market responses. In 2025, BluePort Pictures will focus on high-quality productions, collaborating with leading film and TV companies to advance the S-tier IP "Ancient Music and Elegant Records," while also deepening its presence in niche genres by planning the "BluePort Theater" suspense trilogy ("Burning Seasons," "Kill Wife 2+1," "Treasure Hunt for Youth") and "Otherworld" short drama series, aiming to attract young audiences with social hot topics and innovative themes - The youth growth drama "Falling into Our Love" premiered on Tencent Video on May 28, 2025, ranking among the top two modern idol dramas on Tencent in 2025, with over 400 million effective views across the network[49] - The fantasy romance drama "Nian Nian Ren Jian Yu" premiered on iQIYI on July 31, 2024, accumulating 72.7427 million paid member views as of August 5, 2025[53] - The S-tier IP ancient fantasy drama "Ancient Music and Elegant Records" has completed filming and is expected to be broadcast next year[54] - Planning the "BluePort Theater" suspense trilogy ("Burning Seasons," "Kill Wife 2+1," "Treasure Hunt for Youth") and "Otherworld" short drama series, focusing on realistic themes and diverse composite genres[54][55][56][57] Financial Review The Group's H1 2025 revenue decreased by 51.5% year-on-year to RMB 28.5 million, primarily due to film and TV project cycles and declining game revenue, with corresponding decreases in cost and gross profit, significant reductions in selling and marketing expenses and R&D expenses due to strategic adjustments, and an increase in administrative expenses from higher share-based compensation, leading to an overall operating profit turnaround despite operating losses in both game and film/TV segments, driven by substantial increases in net other operating income (mainly from cryptocurrency disposal gains) and share of profits from equity-accounted investments Revenue by Segment (RMB in thousands) | Segment | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Game Business | 17,163 | 23,334 | -26.6% | | Film and TV Business | 11,374 | 35,453 | -67.9% | | Total | 28,537 | 58,787 | -51.5% | Cost, Gross Profit and Gross Profit Margin (RMB in thousands) | Indicator | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Cost | 23,139 | 44,070 | -47.6% | | Gross Profit | 5,398 | 14,717 | -63.3% | | Gross Profit Margin | 18.9% | 25.0% | -6.1 percentage points | Changes in Key Expenses (RMB in thousands) | Expense Category | H1 2025 | H1 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Selling and Marketing Expenses | 1,160 | 7,679 | -84.9% | | Administrative Expenses | 12,823 | 9,849 | +30.2% | | Research and Development Expenses | 1,512 | 10,252 | -85.3% | Segment Operating (Loss)/Profit (RMB in thousands) | Segment | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Game Business | (6,191) | (16,147) | | Film and TV Business | (2,180) | 2,941 | | Total | (8,371) | (13,206) | - Net other operating income was approximately RMB 16.1 million (H1 2024: net expense of approximately RMB 0.5 million), primarily due to gains from cryptocurrency disposal[69] - Share of profits from investments accounted for using the equity method was approximately RMB 2.8 million (H1 2024: approximately RMB 0.2 million)[70] Liquidity and Financial Resources The Group primarily funds its operations with cash generated from operating activities and maintains a robust cash position, with cash and cash equivalents of approximately RMB 77.8 million as of June 30, 2025, denominated mainly in USD, RMB, and HKD, and total capital expenditure of approximately RMB 65.9 million, primarily for purchasing cryptocurrencies and financial assets - The Group primarily funds its operations with cash generated from operating activities and maintains a robust cash position[71] - As of June 30, 2025, cash and cash equivalents were approximately RMB 77.8 million (December 31, 2024: approximately RMB 89.9 million), primarily denominated in USD (approximately 49.9%), RMB (approximately 41.4%), HKD (approximately 8.2%), and other currencies (approximately 0.5%)[73] Capital Expenditure (RMB in thousands) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Purchase of furniture and office equipment | 624 | 228 | | Expenditure on film/web series copyrights and web series in progress | 822 | 1,731 | | Purchase of cryptocurrencies and financial assets | 64,428 | 41,927 | | Total | 65,874 | 43,886 | Capital Structure The Company's capital structure consists of ordinary shares, which were listed on GEM of the Stock Exchange on December 30, 2014 - The Company's capital structure consists of ordinary shares, which were listed on GEM of the Stock Exchange on December 30, 2014[75] Borrowings and Gearing Ratio As of June 30, 2025, the Group had no bank borrowings, and its gearing ratio was approximately 24.6%, a decrease from 25.8% at the end of 2024, indicating a lower level of financial leverage - As of June 30, 2025, the Group had no bank borrowings[76] - The Group's gearing ratio, calculated as total liabilities divided by total assets, was approximately 24.6% (December 31, 2024: approximately 25.8%)[76] Pledge of Group Assets As of June 30, 2025, the Group had no pledged assets - As of June 30, 2025, there were no pledged assets[77] Employees and Remuneration Policy As of June 30, 2025, the Group had 64 employees, with total employee remuneration of approximately RMB 13.5 million, a decrease from the prior period, offering competitive compensation and benefits, including share option and share award schemes to incentivize employees, while also focusing on staff training and career development - As of June 30, 2025, the Group had 64 employees[78] - For the six months ended June 30, 2025, the Group's total employee remuneration was approximately RMB 13.5 million (for the six months ended June 30, 2024: approximately RMB 21.2 million)[78] - The Company has adopted a share option scheme and two share award schemes to incentivize directors and eligible persons[78] Contingent Liabilities As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[79] Foreign Exchange Risk The Group primarily operates in China and is exposed to foreign exchange risk arising from various currencies, mainly USD, primarily from foreign currency-denominated assets and liabilities, and while the Group has not hedged against foreign currency fluctuations, it will closely monitor exchange rate movements and take appropriate measures - The Group primarily operates in China and is exposed to foreign exchange risk arising from various currencies, mainly USD[80] - Foreign exchange risk primarily arises from bank balances, intangible assets, and financial assets measured at fair value through profit or loss held in foreign currencies[80] - For the six months ended June 30, 2025, the Group did not hedge against any foreign currency fluctuations but will closely monitor exchange rate movements and take appropriate measures to mitigate exchange rate risk[80] Other Information This section covers additional information including dividend policy, post-reporting events, interests in competing businesses, securities transactions by directors, audit committee review, and corporate governance practices 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[81] Events After Reporting Period No significant events after the reporting period requiring disclosure have occurred from the end of the reporting period up to the date of this announcement - No significant events after the reporting period requiring disclosure have occurred from the end of the reporting period up to the date of this announcement[82] Interests in Competing Business For the six months ended June 30, 2025, no director, controlling shareholder, or their associates engaged in any business competing with the Group's business or had any other conflicts of interest - No director, controlling shareholder, or any of their respective associates engaged in any business that directly or indirectly competes or may compete with the Group's business, or had any other conflicts of interest with the Group for the six months ended June 30, 2025[83] Purchase, Sale or Redemption of the Company's Listed Securities For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and the Company held no treasury shares - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[84] - As of June 30, 2025, the Company held no treasury shares[84] Audit Committee The Audit Committee, established on April 24, 2014, comprises three independent non-executive directors, chaired by Ms. Wu Yueqin, and has reviewed the Group's unaudited financial statements for the six months ended June 30, 2025, confirming compliance with applicable accounting standards and GEM Listing Rules, with adequate disclosures - The Audit Committee was established on April 24, 2014, comprising at least three members, with a majority being independent non-executive directors and the chairman being an independent non-executive director[85][86] - The Audit Committee has reviewed the Group's unaudited financial statements for the six months ended June 30, 2025, and is of the opinion that they comply with applicable accounting standards and the GEM Listing Rules, and that adequate disclosures have been made[86] Corporate Governance The Company's corporate governance practices comply with the principles and code provisions of Appendix C1 "Corporate Governance Code" of the GEM Listing Rules, except for Mr. Wang Feng holding both Chairman and Chief Executive Officer roles, deviating from code provision C.2.1, which the Board believes ensures consistent leadership direction and enhances strategic development performance, with its effectiveness to be regularly reviewed - The Company complies with the requirements of the "Corporate Governance Code," except that the roles of Chairman and Chief Executive Officer are held by Mr. Wang Feng, deviating from code provision C.2.1[87][88] - The Board believes that the combined role helps ensure consistency in the Company's leadership direction and enhances the overall strategic development performance of the Company[88] - The Board will regularly review the effectiveness of this arrangement and consider separating the roles of Chairman and Chief Executive Officer when deemed appropriate[89] Directors' Securities Transactions The Company has adopted the required standard of dealings in securities by directors as set out in the GEM Listing Rules, and all directors have confirmed compliance with the dealing standard for the six months ended June 30, 2025, following specific enquiries - The Company has adopted the required standard of dealings by directors in securities of the issuer as set out in Rules 5.48 to 5.67 of the GEM Listing Rules ("Required Standard of Dealings")[90] - Following specific enquiries made to all Directors, all Directors have confirmed compliance with the Required Standard of Dealings for the six months ended June 30, 2025[90]