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中康控股(02361) - 2025 - 中期业绩

Financial Summary The company reported a 7.3% revenue decrease to RMB 147.9 million and a 42.1% net profit decrease to RMB 24.5 million, despite growth in in-hospital business and R&D investment Key Financial Metrics for H1 2025 | Metric | H1 2025 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | | Revenue | 147.9 | -7.3% | | In-hospital Business Revenue | 25.1 | +8.7% | | Cost of Sales | 65.8 | -7.0% | | Gross Profit | 82.1 | -7.5% | | Gross Margin | 55.5% | -0.2 percentage points | | Net Profit | 24.5 | -42.1% | | R&D Expenses | 33.0 | +14.4% | | Contracted Amount Expected to be Delivered This Year | 417.5 | +11.0% | | In-hospital Business Contracted Amount Expected to be Delivered This Year | 70.7 | +44.0% | | Number of Partner Clients | 965 | +11.0% | Performance and Strategic Overview The company maintains an "AI-driven" strategy, adjusting its business structure to focus on high-potential areas and expanding its network to build a comprehensive intelligent platform across healthcare scenarios 1. Performance Highlights Strategic business adjustments led to a 7.3% revenue decline, yet Smart Retail Cloud client growth, increased contracted amounts, strong in-hospital business, and expanded R&D investment were observed - The company's main business revenue decreased by 7.3% year-on-year to RMB 147.9 million, primarily due to strategic business structure adjustments, focusing on future high-potential businesses, and transforming the health management business's profit model towards post-examination management7 - The number of Smart Retail Cloud clients increased from 519 in the same period of 2024 to 676 in the current period, a growth of 30.3%7 - As of the announcement date, the contracted amount expected to be delivered this year is approximately RMB 417.5 million, a year-on-year increase of approximately 11.0%8 - In-hospital business revenue totaled RMB 25.1 million, a year-on-year increase of approximately 8.7%; the contracted amount for in-hospital business expected to be delivered this year is approximately RMB 70.7 million, a year-on-year increase of approximately 44.0%9 - R&D expenses increased by approximately 14.4% year-on-year, with a focus on computing infrastructure and expanding high-level R&D talent, including several AI experts10 - The total number of partner clients reached 965, a year-on-year increase of approximately 11.0%; cumulatively covering 2,968 pharmaceutical retail enterprises, over 170,000 pharmacies, over 530 hospitals, and over 680 physical examination institutions11 2. Analysis of Principal Business Operations Adhering to an "AI-driven" strategy, the company developed a vertical intelligent platform across five healthcare scenarios, launching intelligent agents in pharmacy, commercial, and health management, while optimizing To B, To C, and To R businesses through strategic adjustments (1) Adhering to the "AI-Driven" Core Development Strategy and Accelerating the Construction of a Vertical Intelligent Platform for the Healthcare Industry The company implements an "AI-driven" strategy, developing a five-scenario intelligent platform with agents launched in pharmacy, commercial, and health management, including a listed AI report interpretation agent - The company has built a vertical intelligent platform for the healthcare industry covering five major scenarios: medical, pharmacy, commercial, health management, and R&D12 - Intelligent agents have been launched in pharmacy, commercial, and health management scenarios, with the pharmacy scenario featuring an operational insight intelligent agent, the commercial scenario a consumer insight intelligent agent, and the health management intelligent agent applied to Zhuomu Bird AI-MDT report interpretation13 - The 'Zhuomu Bird AI Report Interpretation Intelligent Agent' has been listed on the Guangzhou Data Exchange; the 'Zhuomu Bird Doctor Intelligent Agent' was selected as a typical case for Guangzhou's 'AI+' initiative13 (2) Deeply Cultivating Mature Business Foundations and Expanding New Businesses for Development The company pursues synergistic To B, To C, and To R business development, offering diverse digital solutions and an innovation platform, with varied revenue performance across segments, including growth in Smart Decision and Medical Clouds, and declines in Smart Retail and Health Management Clouds Client Dimension Analysis The company extends its core capabilities to To B, To C, and To R segments, offering digital solutions for suppliers and retailers, personalized health management, and an innovation platform for drugs and devices - To B segment: Consolidates outpatient advantages, expands inpatient innovation, and provides digital intelligence decision-making, retail, and medical solutions, having launched the Lingxi Consumer Insight Intelligent Agent1516 - To B segment: Digital intelligence retail solutions, centered on the SIC system, serve pharmaceutical retail enterprises, launching pharmacy operational insight intelligent agents, cumulatively serving 2,968 pharmaceutical retail enterprises, managing over 255,000 pharmacy staff, and over 310 million members18 - To B segment: Digital intelligence medical solutions have cumulatively served over 300,000 patients in patient management services; the intelligent iMDT platform has over 20,000 registered oncologists and has organized over 1,200 MDT consultation meetings20 - To C segment: Provides 'light and heavy' digital intelligence services, with the light type being Zhuomu Bird AI-MDT solution from Smart Health Management Cloud, which has reached approximately 230 hospitals and 680 private physical examination centers, cumulatively serving over 9.8 million patient visits2122 - To C segment: The heavy type is Zhuomu Bird Oncology Multi-Disciplinary Diagnosis and Treatment Platform from Smart Medical Cloud, providing online multi-disciplinary, personalized, and precise consultation for oncology patients23 - To R segment: Extends B-side capabilities, focuses on R&D, and builds a digital intelligence empowerment platform for the entire lifecycle of innovative drugs and medical devices, covering the entire process from clinical development to post-market sales24 Revenue Performance by Business Segment Smart Decision Cloud revenue grew by 5.1%, Smart Medical Cloud performed well, but Smart Retail Cloud and Smart Health Management Cloud revenues declined, with the latter down 37.5% due to profit model changes Revenue Performance by Business Segment | Business Segment | H1 2025 (RMB million) | YoY Change (%) | Number of Clients Served | Repurchase Rate | | :--- | :--- | :--- | :--- | :--- | | Smart Decision Cloud | 71.7 | +5.1% | 360 | 98.3% | | Smart Retail Cloud | 48.5 | Decline (not specified) | 676 | 81.9% | | Smart Health Management Cloud | 10.6 | -37.5% | - | - | | Smart Medical Cloud | 17.2 | Good (specific growth rate not specified) | - | 96.0% | (3) AI Renews Core Competitiveness, Continuously Building a Solid Moat The company leverages an "AI Foundation — Ecosystem Empowerment — Cooperation Network" strategy, utilizing large AI models and industry events to build a robust data foundation, diverse application scenarios, and extensive partnerships, driving intelligent product evolution and industry empowerment AI Foundation and Intelligent Agent Platform Leveraging "Zhuomu Bird" and "Tiangong-1" large AI models, the company built a comprehensive model matrix and intelligent agent platform, achieving rapid deployment and market recognition across diverse healthcare scenarios - The company has built a large model matrix, including data governance platforms, intelligent agent development platforms, text models, and multimodal models, driving product upgrades to full-scenario intelligent agents in the vertical healthcare industry29 - Possesses a strong data foundation with a total weight parameter scale of 70 billion, covering millions of public data, tens of millions of de-identified data, and millions of labeled data, with machine automatic cleaning rates exceeding 97% and accuracy exceeding 99%29 - Rich application scenarios cover the entire 'medical-pharmaceutical-patient' process, including pharmaceutical enterprise decision-making, retail pharmacies, physical examinations, medical record governance, medical record quality control, and C-end health assistants, cumulatively empowering 20 million physical examination visits30 - The Zhongkang Intelligent Agent Platform integrates core capabilities such as text generation, image/video generation, and data analysis, comprising three modules: Intelligent Agent Center, Intelligent Agent Creation Platform, and Intelligent Agent Operations Backend, supporting bidirectional internal and external empowerment31 - The 'Zhuomu Bird Doctor Intelligent Agent' was selected as a typical case for Guangzhou's 'AI+' initiative, the 'Zhuomu Bird AI Report Interpretation Intelligent Agent' was listed on the Guangzhou Data Exchange, and the Pharmacy Operational Insight Intelligent Agent has partnered with leading enterprises32 Ecosystem Empowerment and Industry Cooperation Network The company established a comprehensive ecosystem empowerment system and extensive industry cooperation network, leveraging its industry research institute and major events to provide strategic support and foster partnerships across healthcare sectors - Zhongkang Industry Research Institute, as the 'ecosystem brain' for industry insights, produces forward-looking, leading, and practical research results and industry insight reports, consolidating its authoritative position in the industry33 - The ecosystem empowerment system provides comprehensive, full-chain solutions including strategic planning, research services, resource linkage, market expansion, brand building, industry activities, operational empowerment, and capital operations34 - The hosted Xipu Conference has been successfully held for 18 sessions, with over 8,000 delegates and over 60,000 attendees; the Xiding Conference has been successfully held for 10 sessions, with over 8,000 delegates and over 30,000 attendees34 - The industry cooperation network is extensive, with partnerships established with over 965 enterprise clients during the reporting period35 - The pharmaceutical retail pharmacy cooperation network cumulatively covers 2,968 pharmaceutical retail enterprises, over 170,000 pharmacy stores, managing over 255,000 pharmacy staff, and over 310 million pharmacy members36 - The health management cooperation network cumulatively reached approximately 230 hospitals and 680 physical examination centers, serving over 9.8 million patients; the medical cooperation network has partnered with over 300 hospitals through patient management services, with over 20,000 registered oncologists on the iMDT platform36 Financial Performance Analysis Revenue and gross profit declined due to strategic adjustments and pricing, while other income decreased significantly from lower interest, grants, and exchange losses; increased R&D costs, despite reduced administrative expenses, led to a substantial drop in profit before tax and profit for the period Revenue Group revenue decreased by 7.3% to RMB 147.9 million, mainly due to strategic business restructuring and a shift in the health management business's profit model Revenue Change | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 147.9 | 159.5 | -7.3% | - The decrease in revenue was primarily due to the company's strategic adjustment of its business structure, focusing on future high-potential businesses, and transforming the health management business's profit model towards post-examination management37 Cost of Sales Cost of sales decreased by 7.0% to RMB 65.8 million, driven by business structure optimization and efficiency gains from the BrainyAI platform Cost of Sales Change | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Cost of Sales | 65.8 | 70.7 | -7.0% | - The decrease in cost of sales was primarily due to the Group's optimized business structure and the application of the BrainyAI platform to improve overall work efficiency, achieving cost reduction and efficiency gains38 Gross Profit and Gross Margin Gross profit decreased by 7.5% to RMB 82.1 million, with gross margin slightly down by 0.2 percentage points to 55.5%, primarily due to product pricing adjustments aimed at expanding customer reach Gross Profit and Gross Margin Change | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 82.1 | 88.8 | -7.5% | | Gross Margin | 55.5% | 55.7% | -0.2 percentage points | - The decrease in gross profit was mainly due to the emergence of two major markets, innovative drugs and non-pharmaceutical products, leading to a strategy of adjusting and lowering some product unit prices to expand customer coverage39 Other Income and Gains Other income and gains significantly decreased by 44.0% to RMB 13.1 million, primarily due to reduced interest income, exchange losses, and lower government grants Other Income and Gains Change | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Other Income and Gains | 13.1 | 23.5 | -44.0% | - The decrease was primarily due to reduced interest income affected by interest rate cuts in USD and RMB; exchange losses incurred during the period due to exchange rate fluctuations; and decreased government grants influenced by policy factors40 Selling and Distribution Expenses Selling and distribution expenses increased by 2.2% to RMB 17.6 million, mainly due to increased investment in expanding and maintaining chain pharmacies to boost customer loyalty Selling and Distribution Expenses Change | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 17.6 | 17.2 | +2.2% | - The increase was primarily due to greater investment in the expansion and maintenance of chain pharmacies to enhance their stickiness41 Administrative Expenses Administrative expenses decreased by 16.0% to RMB 14.2 million, primarily due to cost reduction, improved operational efficiency, and deferred activities Administrative Expenses Change | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 14.2 | 17.0 | -16.0% | - The decrease was primarily due to the company reasonably cutting redundant expenses, improving operational efficiency, and deferring some activities to the second half of the year42 Research and Development Costs Research and development costs increased by 14.4% to RMB 33.0 million, mainly driven by increased investment in AI+data, AI+medical, and the integrated intelligent agent creation platform Research and Development Costs Change | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | R&D Costs | 33.0 | 28.9 | +14.4% | - The increase was primarily due to increased R&D investment in AI+data, AI+medical, and the integrated intelligent agent creation platform during the period43 Profit Before Tax Profit before tax decreased by 38.5% to RMB 26.2 million, influenced by lower gross profit, increased R&D, reduced government grants, decreased interest and exchange gains, partially offset by lower financial asset impairment losses Profit Before Tax Change | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit Before Tax | 26.2 | 42.5 | -38.5% | - The decrease was primarily due to a RMB 6.7 million decline in gross profit from the company's phased adjustment of operating strategies; a RMB 4.1 million increase in research and development costs due to greater investment in R&D talent and infrastructure; a RMB 6.9 million reduction in government grants; a combined RMB 5.6 million decrease in interest income and exchange gains; partially offset by a RMB 4.7 million decrease in impairment losses on financial assets44 Income Tax Expense Income tax expense significantly increased from RMB 0.2 million to RMB 1.6 million, mainly due to a higher effective tax rate resulting from the stable profitability of certain subsidiaries Income Tax Expense Change | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Income Tax Expense | 1.6 | 0.2 | Significant increase | - The increase was primarily due to some subsidiaries turning profitable in the same period last year, with these lower effective tax rate subsidiaries contributing significantly to profit before tax; as these subsidiaries have achieved stable profitability in the current period, the effective tax rate has increased year-on-year45 Profit for the Period The Group's profit for the period decreased by 42.1% to RMB 24.5 million, reflecting the combined impact of various financial factors Profit for the Period Change | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Profit for the Period | 24.5 | 42.3 | -42.1% | Liquidity and Capital Resources As of June 30, 2025, the Group funded operations via cash flow and global offerings, with no bank borrowings, a 21.1% gearing ratio, and over 100% capital expenditure increase for AI computing servers Liquidity and Liabilities | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 51.4 | 63.7 | | Borrowings | Nil | Nil | | Lease Liabilities | 9.4 | - | | Gearing Ratio | 21.1% | 14.4% | - The Group faces foreign exchange risk from fluctuations between RMB and USD, currently without hedging activities, but will actively explore timely use of financial instruments for hedging51 - Capital expenditure was approximately RMB 3.9 million, an increase of over 100% compared to the same period in 2024, primarily for acquiring computing servers to support the AI strategic layout53 - As of June 30, 2025, the Group had no significant contingent liabilities, guarantees, or material litigation against it, nor any significant acquisitions or disposals, or major future investment plans5455 Employees and Staff Costs As of June 30, 2025, the Group had 756 full-time employees, with staff costs decreasing by 3.4%, emphasizing talent development, with 39% medical and 18% AI/tech backgrounds, supported by incentive plans Employee Count and Cost Change | Metric | June 30, 2025 | June 30, 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Full-time Employees | 756 | 778 | -2.8% | | Staff Costs | RMB 72.8 million | RMB 75.4 million (estimated) | -3.4% | Employee Count by Function (June 30, 2025) | Function | Number of Employees | Percentage of Total | | :--- | :--- | :--- | | Solutions and Products | 341 | 45% | | R&D | 224 | 30% | | Sales and Marketing | 125 | 16% | | General and Administrative | 66 | 9% | | Total | 756 | 100% | - Approximately 39% of employees have medical backgrounds and experience, and approximately 18% have AI and technical backgrounds57 - The company has adopted share option schemes and share incentive schemes to motivate outstanding employees and attract top talent57 Subsequent Events No significant events requiring further disclosure or adjustment have occurred since the reporting period ended - No significant events requiring further disclosure or adjustment have occurred for the Group from the end of the reporting period to the date of this announcement58 Unaudited Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income This section presents the unaudited consolidated statement of profit or loss and other comprehensive income for the six months ended June 30, 2025, detailing financial performance and earnings per share Unaudited Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Summary) | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 147,925 | 159,531 | | Cost of Sales | (65,823) | (70,743) | | Gross Profit | 82,102 | 88,788 | | Other Income and Gains | 13,145 | 23,454 | | Selling and Distribution Expenses | (17,564) | (17,184) | | Administrative Expenses | (14,243) | (16,963) | | R&D Costs | (33,030) | (28,881) | | Net Impairment Loss on Financial Assets | (1,016) | (5,725) | | Other Expenses | (2,999) | (616) | | Finance Costs | (240) | (329) | | Profit Before Tax | 26,155 | 42,544 | | Income Tax Expense | (1,644) | (196) | | Profit for the Period | 24,511 | 42,348 | | Basic and Diluted Earnings Per Share Attributable to Owners of the Parent (RMB) | 0.06 | 0.10 | Unaudited Interim Condensed Consolidated Statement of Financial Position This section presents the unaudited consolidated statement of financial position as of June 30, 2025, detailing asset, liability, and equity composition, reflecting structural changes Unaudited Interim Condensed Consolidated Statement of Financial Position (Summary) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Non-current Assets | 47,409 | 142,797 | | Total Current Assets | 778,292 | 668,099 | | Total Current Liabilities | 135,811 | 92,345 | | Net Current Assets | 642,481 | 575,754 | | Total Assets Less Current Liabilities | 689,890 | 718,551 | | Total Non-current Liabilities | 8,019 | 9,744 | | Net Assets | 681,871 | 708,807 | | Total Equity | 681,871 | 708,807 | Notes to the Unaudited Interim Condensed Consolidated Financial Information This section provides detailed notes to the interim condensed consolidated financial information, covering company details, accounting policies, segment information, revenue, profit before tax, tax, dividends, EPS, receivables, financial assets, cash, payables, and share capital changes 1. Company Information Zhongkang Holdings Limited, an investment holding company incorporated in the Cayman Islands, provides data insight solutions, data-driven publishing, and SaaS products, listed on the HKEX Main Board on July 12, 2022 - The Company is a limited company incorporated in the Cayman Islands on March 4, 2019, primarily engaged in providing data insight solutions, data-driven publishing and events, and SaaS products62 - The Company's shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on July 12, 202263 2. Basis of Preparation The interim condensed consolidated financial information is prepared under HKAS 34 and should be read with the Group's 2024 annual consolidated financial statements - The interim condensed consolidated financial information has been prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting64 3. Changes in Accounting Policies Accounting policies remain consistent with the prior year, with the new adoption of HKAS 21 "Lack of Exchangeability" having no financial impact due to the Group's exchangeable transaction currencies - The financial information for the current period has been prepared in accordance with the revised Hong Kong Financial Reporting Standards, specifically Hong Kong Accounting Standard 21 (Revised) 'Lack of Exchangeability', adopted for the first time6566 - As all the Group's transaction currencies are exchangeable, these revisions had no impact on the interim condensed consolidated financial information66 4. Operating Segment Information The Group operates as a single reportable segment, with management monitoring its overall performance for decision-making - The Group does not disaggregate its business units by services and has only one reportable operating segment67 5. Revenue, Other Income and Gains This section details revenue from customer contracts by product, scenario, market, and recognition timing, outlines performance obligations for data insight, publishing, and SaaS products, and itemizes other income and gains including interest, grants, and exchange differences Customer Contract Revenue Classification (H1 2025) | Classification | RMB thousand | | :--- | :--- | | By Product Type: | | | Data Insight Solutions | 84,743 | | Data-Driven Publishing and Events | 32,730 | | SaaS Products | 30,452 | | By Application Scenario: | | | Smart Decision Cloud | 71,708 | | Smart Retail Cloud | 48,456 | | Smart Medical Cloud | 17,207 | | Smart Health Management Cloud | 10,554 | | By Geographical Market: | | | Mainland China | 146,892 | | Overseas | 1,033 | | Timing of Revenue Recognition: | | | Services transferred at a point in time | 75,949 | | Services transferred over time | 71,976 | Other Income and Gains Analysis (H1 2025) | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank interest income | 11,840 | 13,450 | | Government grants | 680 | 7,578 | | Investment income from financial assets at fair value through profit or loss | 616 | 119 | | Net exchange loss | 1,741 | (2,291) (gain) | | Total other income and gains | 13,145 | 23,454 | 6. Profit Before Tax This section details the components of profit before tax, including cost of services, depreciation, R&D, interest income, government grants, financial asset fair value losses, and exchange differences Composition of Profit Before Tax (H1 2025) | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of services provided | 65,823 | 70,743 | | Depreciation of property, plant and equipment | 1,551 | 1,277 | | Depreciation of right-of-use assets | 2,335 | 2,326 | | Amortisation of other intangible assets | 390 | 364 | | R&D costs | 33,030 | 28,881 | | Bank interest income | (11,840) | (13,450) | | Government grants | (680) | (7,578) | | Fair value loss on financial assets at fair value through profit or loss | 1,251 | 575 | | Net exchange loss | 1,741 | (2,291) (gain) | | Net impairment of trade receivables | 1,016 | 5,725 | 7. Income Tax The Group's income tax is entity-based, with Hong Kong subsidiaries having no taxable profits, Mainland China subsidiaries subject to 25% statutory rate (15% for high-tech, 5% for small/micro), and current period tax expense mainly comprising Mainland China and deferred tax - Guangzhou Zhongkang Digital Technology Co., Ltd., as a high-tech enterprise, enjoys a preferential Chinese enterprise income tax rate of 15%75 - During the period, certain subsidiaries operating in Mainland China were recognized as small and micro enterprises, enjoying a preferential tax rate of 5%76 Income Tax Expense Composition (H1 2025) | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Current - Mainland China tax deducted during the period | 1,933 | 254 | | Deferred tax | (289) | (58) | | Total tax deducted during the period | 1,644 | 196 | 8. Dividends Shareholders approved a final dividend of HKD 7.25 cents per ordinary share for 2024, totaling RMB 50 million, but no interim dividend was declared for the six months ended June 30, 2025 - On March 28, 2025, shareholders approved a final dividend of HKD 7.25 cents per ordinary share for the year ended December 31, 2024, totaling approximately RMB 50,000,00078 - The Board did not declare an interim dividend for the six months ended June 30, 202579 9. Earnings Per Share Attributable to Owners of the Parent This section outlines the profit attributable to ordinary equity holders and the weighted average number of ordinary shares used for basic and diluted EPS calculations, noting no potentially dilutive shares EPS Calculation Data (H1 2025) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the parent for the purpose of basic and diluted earnings per share (RMB thousand) | 24,744 | 41,675 | | Weighted average number of ordinary shares in issue for the purpose of basic and diluted earnings per share (shares) | 407,727,793 | 417,249,077 | - There were no potentially dilutive ordinary shares outstanding for the Group during the period81 10. Trade and Bills Receivables As of June 30, 2025, trade and bills receivables totaled RMB 92.98 million, with credit terms of 7-120 days, and this section details their aging analysis and impairment loss provisions Trade and Bills Receivables (June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables | 122,904 | 123,476 | | Bills receivables | 3,878 | 3,887 | | Impairment | (33,801) | (32,863) | | Total | 92,981 | 94,500 | Aging Analysis of Trade Receivables (June 30, 2025) | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 6 months | 65,110 | 71,307 | | 6 to 12 months | 15,331 | 10,026 | | 1 to 2 years | 7,047 | 7,173 | | 2 to 3 years | 1,615 | 2,107 | | Total | 89,103 | 90,613 | Changes in Impairment Loss Provisions for Trade Receivables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | At beginning of period/year | 32,863 | 23,530 | | Net impairment loss | 1,016 | 9,333 | | Amounts written off as uncollectible | (78) | – | | At end of period/year | 33,801 | 32,863 | 11. 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 39.92 million, mainly short-term financial products and private equity funds from Mainland Chinese banks, all redeemable on demand Financial Assets at Fair Value Through Profit or Loss (June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Unlisted investments, at fair value | 39,871 | 47,884 | | Unlisted equity investments, at fair value | 50 | 50 | | Total | 39,921 | 47,934 | - The aforementioned unlisted investments refer to certain financial products issued by Mainland Chinese commercial banks with maturities within one year and private equity funds issued by Mainland Chinese portfolio companies, all of which are redeemable at any time86 12. Cash and Cash Equivalents As of June 30, 2025, cash and cash equivalents totaled RMB 51.42 million, mainly in RMB and USD, with fixed-rate time deposits ranging from one month to three years Cash and Cash Equivalents (June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Cash and bank balances | 46,685 | 61,904 | | Time deposits | 593,235 | 555,540 | | Subtotal | 639,920 | 617,444 | | Less: Non-cash equivalent portion | (588,496) | (553,729) | | Cash and cash equivalents | 51,424 | 63,715 | Cash and Cash Equivalents by Currency (June 30, 2025) | Currency | June 30, 2025 (RMB thousand) | | :--- | :--- | | RMB | 45,496 | | USD | 5,780 | | SGD | 87 | | HKD | 61 | | Total | 51,424 | 13. Trade Payables As of June 30, 2025, trade payables totaled RMB 15.83 million, mostly due within 3 months, non-interest-bearing, and typically settled within 90 days Aging Analysis of Trade Payables (June 30, 2025) | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 months | 13,742 | 13,910 | | 4 to 6 months | 158 | 1,311 | | 7 to 12 months | 1,202 | 219 | | Over 12 months | 725 | 1,178 | | Total | 15,827 | 16,618 | 14. Other Payables and Accrued Expenses As of June 30, 2025, other payables and accrued expenses totaled RMB 111.49 million, mainly comprising payroll, contract liabilities, taxes, and dividends payable Other Payables and Accrued Expenses (June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Payroll payable | 10,289 | 26,249 | | Contract liabilities | 41,442 | 25,766 | | Taxes payable (excluding income tax) | 7,003 | 5,759 | | Dividends payable | 50,000 | – | | Other payables | 2,754 | 5,939 | | Total | 111,488 | 63,713 | 15. Share Capital and Treasury Shares As of June 30, 2025, the company's issued share capital was RMB 30.38 million, treasury shares were RMB 208.98 million, and 407,500 shares were repurchased for a share award scheme Share Capital and Treasury Shares (June 30, 2025) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Share capital | 30,384 | 30,384 | | Treasury shares | (208,982) | (207,535) | - In 2025, the Company repurchased 407,500 shares on the Stock Exchange for its share award scheme at a total consideration of approximately HKD 1,597,000 (equivalent to approximately RMB 1,447,000)91 Definitions This section defines key terms and abbreviations used throughout the report, including AI, AI-MDT, conference names, company entities, product names, business models, and financial terminology, for clarity