兑吧(01753) - 2025 - 中期业绩

Company Information and Financial Summary Company Overview Duiba Group Limited (Stock Code: 1753) announced its unaudited interim results for the six months ended June 30, 2025, with the company incorporated in the Cayman Islands and listed on the Main Board of the Hong Kong Stock Exchange - Duiba Group Limited (Stock Code: 1753) announced its unaudited interim results for the six months ended June 30, 2025[2][3] - The company was incorporated in the Cayman Islands, and its shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on May 7, 2019[3][14] Summary of Financial Information For the six months ended June 30, 2025, the company's total revenue decreased by 23.7% year-on-year, primarily due to lower revenue from user operation SaaS platform business and internet advertising business Summary of Financial Information for the Six Months Ended June 30 | Indicator | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | Revenue from User Operation SaaS Platform Business | 89,574 | 116,965 | | Revenue from Internet Advertising Business | 230,251 | 318,169 | | Other Revenue | 29,798 | 23,125 | | Total Revenue | 349,623 | 458,259 | | Year-on-Year Change in Revenue | -23.7% | - | - The company's revenue for the six months ended June 30, 2025, decreased by approximately 23.7% compared to the same period in 2024[3] Non-HKFRS Measures The company uses "adjusted loss for the period" as a non-HKFRS measure to supplement its condensed consolidated financial statements, reflecting operating performance by adding back share-based payments, with an adjusted loss of RMB 24,522 thousand for H1 2025, widening year-on-year - The company uses "adjusted loss for the period," a non-HKFRS measure, as an additional financial indicator to eliminate the impact of items not reflecting operating performance[4] Adjusted Loss for the Period | Indicator | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | Loss for the period | (26,728) | (19,078) | | Add: Share-based payments | 2,206 | 1,465 | | Adjusted Loss for the Period | (24,522) | (17,613) | - Adjusted loss for the period is defined as loss for the period plus share-based payments, and is not a measure required or presented under HKFRS[5] Unaudited Interim Condensed Consolidated Financial Statements Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the company recorded a loss for the period of RMB 26,728 thousand, a wider loss compared to the prior year, with basic and diluted loss per share of RMB 2.5 cents Summary of Consolidated Statement of Profit or Loss and Other Comprehensive Income for the Six Months Ended June 30 | Indicator | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | Revenue | 349,623 | 458,259 | | Cost of Sales | (292,373) | (396,757) | | Gross Profit | 57,250 | 61,502 | | Other Income and Gains | 35,927 | 29,270 | | Selling and Distribution Expenses | (46,547) | (41,305) | | Administrative Expenses | (49,916) | (52,521) | | Net Impairment Loss on Financial Assets | (10,581) | (9,211) | | Other Expenses | (1,398) | (167) | | Finance Costs | (9,644) | (6,919) | | Share of Loss of an Associate (net of tax) | (1,439) | (176) | | Loss Before Tax | (26,348) | (19,527) | | Income Tax (Expense) / Credit | (380) | 449 | | Loss for the Period | (26,728) | (19,078) | | Total Comprehensive Loss for the Period | (28,822) | (15,885) | | Loss per Share Attributable to Ordinary Equity Holders of the Parent (RMB) | (0.025) | (0.018) | Consolidated Statement of Financial Position As of June 30, 2025, the company's total equity was RMB 1,298,619 thousand, a slight decrease from the end of 2024, with net current assets remaining high but interest-bearing bank borrowings significantly increasing Summary of Consolidated Statement of Financial Position as of June 30 | Indicator | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | Non-current Assets | | | | Property, Plant and Equipment | 4,960 | 2,171 | | Investment in an Associate | 234,373 | 234,922 | | Total Non-current Assets | 306,989 | 401,547 | | Current Assets | | | | Trade Receivables | 805,249 | 723,783 | | Prepayments, Other Receivables and Other Assets | 379,091 | 584,592 | | Cash and Cash Equivalents | 433,393 | 280,750 | | Total Current Assets | 2,221,797 | 1,969,233 | | Current Liabilities | | | | Trade Payables | 90,549 | 82,207 | | Interest-bearing Bank Borrowings | 855,815 | 667,164 | | Total Current Liabilities | 1,229,668 | 1,044,168 | | Net Current Assets | 992,129 | 925,065 | | Total Equity | 1,298,619 | 1,325,235 | Consolidated Statement of Cash Flows For the six months ended June 30, 2025, net cash flows from operating activities turned into a net inflow of RMB 86.0 million, primarily due to a decrease in prepayments, with cash and cash equivalents significantly increasing at period-end Summary of Consolidated Statement of Cash Flows for the Six Months Ended June 30 | Indicator | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | Net Cash Flows from / (Used in) Operating Activities | 86,000 | (374,925) | | Net Cash Flows (Used in) / from Investing Activities | 165,020 | (94,154) | | Net Cash Flows from Financing Activities | 161,571 | 153,264 | | Net Increase / (Decrease) in Cash and Cash Equivalents | 153,417 | (56,641) | | Cash and Cash Equivalents at End of Period | 433,393 | 232,033 | - Net cash inflow from operating activities was RMB 86.0 million, compared to a net cash outflow from operating activities of RMB 374.9 million in H1 2024, primarily due to a decrease in prepayments as of June 30, 2025, compared to the balance as of December 31, 2024[11][55] Notes to the Unaudited Interim Condensed Consolidated Financial Information Company Information and Basis of Preparation Duiba Group Limited is an investment holding company incorporated in the Cayman Islands, with subsidiaries primarily engaged in user operation SaaS platform and internet advertising businesses, and interim financial information is prepared in RMB under HKAS 34 - The Company is an investment holding company, and its subsidiaries are principally engaged in user operation Software as a Service (SaaS) platform business and internet advertising business[14] - The unaudited interim condensed consolidated financial information has been prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting and is presented in RMB[15] Changes in Accounting Policies and Disclosures This period's financial information first adopted amendments to HKFRS accounting standards, with amendments to HKAS 21 regarding lack of exchangeability having no impact on the interim condensed consolidated financial information - The accounting policies adopted in preparing the unaudited interim condensed consolidated financial information are consistent with those applied in the preparation of the Group’s annual consolidated financial statements for the year ended December 31, 2024, except for the adoption of amendments to HKFRS accounting standards issued by the Hong Kong Institute of Certified Public Accountants for the first time for the current period’s financial information[16] - The amendments to HKAS 21 regarding lack of exchangeability have no impact on the interim condensed consolidated financial information as the currencies in which the Group transacts are exchangeable into the presentation currency[17] Operating Segment Information The Group has only one reportable operating segment, with all revenue and non-current assets derived from China; during the reporting period, the top two customers contributed significantly to revenue, but the third largest customer's revenue fell below the 10% disclosure threshold - The Group does not classify its business units by product, but has only one reportable operating segment[18] - All of the Group’s revenue is derived from customers in China, and all non-current assets are located in China[19] Major Customer Revenue Contribution | Customer | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | Customer 1 | 59,484 | 68,140 | | Customer 2 | 55,768 | 62,437 | | Customer 3 | Not applicable* | 46,327 | *The corresponding revenue from this customer is not disclosed as it did not individually account for 10% or more of the Group's revenue during the reporting period. Revenue, Other Income and Gains The Group's revenue primarily comes from user operation SaaS platform and internet advertising businesses, both of which saw year-on-year declines in H1 2025, while other income and gains mainly include interest income and government grants Revenue Analysis | Business | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | User Operation SaaS Platform Business | 89,574 | 116,965 | | Internet Advertising Business | 230,251 | 318,169 | | Other | 29,798 | 23,125 | | Total | 349,623 | 458,259 | Other Income and Gains | Item | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | Interest Income | 7,392 | 13,224 | | Government Grants | 20,134 | 11,594 | | Investment Income from Financial Assets at Fair Value Through Profit or Loss | 7,239 | 87 | | Total | 35,927 | 29,270 | Loss Before Tax The Group's loss before tax is primarily affected by cost of sales, selling and distribution expenses, administrative expenses, net impairment loss on financial assets, and R&D costs, with both net impairment loss on financial assets and finance costs increasing in H1 2025 Major Deductions / (Additions) to Loss Before Tax | Item | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | Cost of Inventories Sold | 58,646 | 89,899 | | Cost of Services Provided | 233,727 | 306,858 | | Depreciation of Property, Plant and Equipment | 327 | 1,069 | | Net Impairment Loss on Financial Assets | 10,581 | 9,211 | | Research and Development Costs | 22,892 | 23,802 | | Employee Benefit Expenses | 66,771 | 64,878 | - Amortisation of intangible assets for the six months ended June 30, 2025, is included in "Administrative expenses"[25] - Net fair value loss on financial assets at fair value through profit or loss is included in "Other expenses"[26] Income Tax The Group's income tax expense consists mainly of current tax and deferred tax, with a total tax expense of RMB 380 thousand for H1 2025, compared to a credit in the prior year Total Income Tax Expense / (Credit) for the Period | Item | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | Current Tax | (1,089) | 613 | | Deferred Tax | 1,469 | (1,062) | | Total Income Tax Expense / (Credit) for the Period | 380 | (449) | - The current tax credit for the six months ended June 30, 2025, was due to adjustments to the provisional tax calculation for the previous year resulting from the application of revised tax rates[28] Dividends The Board does not recommend the declaration of any interim dividend for the reporting period - The Board does not recommend the declaration of any interim dividend for the reporting period (for the six months ended June 30, 2024: nil)[29] Loss Per Share Attributable to Ordinary Equity Holders of the Parent For H1 2025, basic loss per share attributable to ordinary equity holders of the parent was RMB 2.5 cents, a widening of the loss from RMB 1.8 cents in the prior year Loss Per Share Calculation | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss attributable to ordinary equity holders of the parent for basic and diluted loss per share calculation (RMB) | (26,728,000) | (19,078,000) | | Weighted average number of ordinary shares in issue for basic loss per share calculation | 1,067,437,500 | 1,063,154,500 | | Basic and Diluted Loss Per Share (RMB) | (0.025) | (0.018) | Property, Plant and Equipment As of June 30, 2025, the carrying amount of the company's property, plant and equipment increased to RMB 4,960 thousand, primarily due to increased additions during the period Changes in Carrying Amount of Property, Plant and Equipment | Item | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | Carrying Amount at Beginning of Period/Year | 2,171 | 2,796 | | Additions | 3,131 | 1,100 | | Depreciation Charged During Period/Year | (327) | (1,632) | | Disposals | (15) | (93) | | Carrying Amount at End of Period/Year | 4,960 | 2,171 | Investment in an Associate As of June 30, 2025, the Group held a 19% equity interest in Zhejiang Gushang Intelligent Technology Co., Ltd., with a carrying amount of RMB 234,373 thousand, primarily engaged in project operations Investment in an Associate | Indicator | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | Investment in an Associate | 234,373 | 234,922 | | Company Name | Zhejiang Gushang Intelligent Technology Co., Ltd. | | | Group's Share of Ownership Interest Percentage | 19% | | | Principal Business | Project Operations | | Trade Receivables As of June 30, 2025, net trade receivables were RMB 805,249 thousand, an increase from the end of 2024, with credit terms mainly 30 to 90 days and overdue balances regularly reviewed by senior management Trade Receivables | Indicator | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | Trade Receivables | 877,502 | 785,455 | | Less: Impairment of Trade Receivables | (72,253) | (61,672) | | Net Amount | 805,249 | 723,783 | - Trade receivables are non-interest bearing, with credit terms mainly 30 to 90 days, and overdue balances are regularly reviewed by senior management[34] Aging Analysis of Trade Receivables | Aging | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | 0 to 30 Days | 217,897 | 354,265 | | 31 to 90 Days | 231,012 | 178,194 | | 91 to 180 Days | 192,010 | 47,071 | | 181 to 365 Days | 109,842 | 129,118 | | 1 to 2 Years | 54,488 | 15,135 | | Total | 805,249 | 723,783 | Trade Payables As of June 30, 2025, trade payables were RMB 90,549 thousand, an increase from the end of 2024, are interest-free, and generally settled within 60 days Trade Payables | Indicator | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | Trade Payables | 90,549 | 82,207 | Aging Analysis of Trade Payables | Aging | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | 0 to 180 Days | 42,434 | 51,571 | | 181 to 365 Days | 22,878 | 3,555 | | 1 to 2 Years | 5,120 | 6,897 | | 2 to 3 Years | 8,057 | 8,028 | | Over 3 Years | 12,060 | 12,156 | | Total | 90,549 | 82,207 | - Trade payables are interest-free and generally settled within 60 days[37] Share Capital As of June 30, 2025, the company's number of issued shares was 1,076,823,200, with share capital and share premium remaining stable Overview of Share Capital Changes | Item | Number of Shares | Share Capital (thousands of RMB) | Share Premium (thousands of RMB) | Total (thousands of RMB) | | :--- | :--- | :--- | :--- | :--- | | As of December 31, 2024, January 1, 2025, and June 30, 2025 | 1,076,823,200 | 70 | 1,942,530 | 1,942,600 | Management Discussion and Analysis Business Review Duiba Group is a leading user operation SaaS service provider and internet advertising platform operator in China, offering full-lifecycle operation services to customers in finance and internet industries; during this period, both paid customer numbers and new contract value for SaaS platform business decreased, and internet advertising revenue also significantly reduced - The Company is a leading user operation Software as a Service (SaaS) service provider and internet advertising platform operator in China, providing full-lifecycle operation services for user growth, activity retention, and traffic monetization to tens of thousands of customers[40] User Operation SaaS Platform Business The user operation SaaS platform business aims to help enterprises attract and retain online users through various tools; as of June 30, 2025, both paid customer numbers and new contract value decreased year-on-year, leading to a 23.4% reduction in business revenue - As of June 30, 2025, the number of paying customers using fee-based user operation SaaS services was 487 (H1 2024: 531), including 128 financial industry customers (H1 2024: 170)[42] - For the six months ended June 30, 2025, the number of new contracts (including renewals) for the user operation SaaS platform business reached 177 (H1 2024: 224), with a total value of RMB 50.4 million (H1 2024: RMB 75.5 million)[42] User Operation SaaS Platform Business Financial Performance | Indicator | 2025 (thousands of RMB) | 2024 (thousands of RMB) | | :--- | :--- | :--- | | Revenue | 89,574 | 116,965 | | Cost of Sales | (61,547) | (98,244) | | Selling and Distribution Expenses | (25,832) | (22,365) | | Administrative Expenses (excluding R&D expenses) | (11,543) | (15,596) | | Research and Development Expenses | (16,692) | (14,203) | | Segment Loss | (26,040) | (33,443) | Internet Advertising Business The Group's internet advertising business aggregates App scenario traffic, systematically operates activity content, and monetizes large-scale traffic using big data and AI technology; for H1 2025, revenue from this business decreased by approximately 27.6%, primarily charged under the CPC model - The Group's internet advertising business aggregates traffic from various App scenarios, systematically operates activity content, and monetizes large-scale traffic through advertising[45] - For the six months ended June 30, 2025, revenue from the internet advertising business decreased by approximately 27.6% to RMB 230.3 million (H1 2024: RMB 318.2 million)[46] - Most revenue is derived from the CPC (cost-per-click) model, where charges are incurred only when viewers interact with advertising tools and are directed to the advertiser's designated page[45] Research and Development As of June 30, 2025, the R&D department had 133 employees, accounting for 26.7% of the Group's total employees, with R&D expenses slightly decreasing year-on-year - As of June 30, 2025, the number of employees in the R&D department was 133 (June 30, 2024: 145), accounting for approximately 26.7% of the Group's total employees (June 30, 2024: approximately 33.4%)[47] - The Group's R&D expenses decreased by approximately 3.8% from RMB 23.8 million in H1 2024 to RMB 22.9 million in H1 2025[47] Financial Review Affected by industry uncertainties, the Group's total revenue for H1 2025 decreased by 23.7% year-on-year, gross profit declined by 6.8%, and loss for the period widened; however, operating cash flow turned positive, while the gearing ratio increased - In H1 2025, due to the continuous uncertainty in industry growth, advertisers' budget plans became more conservative, leading to a further reduction in the scale of the internet advertising business and a further decline in the company's profitability[48] Revenue For the six months ended June 30, 2025, the Group's total revenue was RMB 349.6 million, a 23.7% year-on-year decrease, primarily due to reduced revenue from internet advertising and user operation SaaS platform businesses - For the six months ended June 30, 2025, the Group recorded total revenue of RMB 349.6 million, a decrease of approximately 23.7% compared to RMB 458.3 million in H1 2024[49] - Revenue from the internet advertising business decreased by approximately 27.6% to RMB 230.3 million, and revenue from the user operation SaaS platform business decreased by approximately 23.4% to RMB 89.6 million[49] Gross Profit For H1 2025, the Group's gross profit was RMB 57.3 million, a 6.8% year-on-year decrease, while the gross profit margin improved to 16.4%, mainly due to higher gross profit margins in both user operation SaaS platform and internet advertising businesses - For the six months ended June 30, 2025, the Group recorded gross profit of RMB 57.3 million, a decrease of approximately 6.8% compared to RMB 61.5 million in H1 2024[50] - The gross profit margin was approximately 16.4% (H1 2024: approximately 13.4%), with gross profit margins for user operation SaaS platform business and internet advertising business being approximately 31.3% and 8.4% respectively (H1 2024: approximately 16.0% and 6.5% respectively)[50] Selling and Distribution Expenses For H1 2025, selling and distribution expenses increased by 12.6% to RMB 46.5 million, with its percentage of total revenue rising to 13.3%, primarily due to an increase in sales and operations employees - For the six months ended June 30, 2025, the Group recorded selling and distribution expenses of RMB 46.5 million, an increase of approximately 12.6% compared to RMB 41.3 million in H1 2024[51] - The percentage of selling and distribution expenses to the Group's total revenue increased to approximately 13.3% (H1 2024: approximately 9.0%), mainly due to the increase in the number of the Group's sales and operations employees to 303 as of June 30, 2025 (H1 2024: 235)[51] Administrative Expenses For H1 2025, administrative expenses decreased by 5.0% to RMB 49.9 million, mainly due to stricter internal controls, while its percentage of total revenue increased to 14.3% due to reduced total revenue - For the six months ended June 30, 2025, the Group recorded administrative expenses of RMB 49.9 million, a decrease of approximately 5.0% compared to RMB 52.5 million in H1 2024, primarily due to stricter internal controls on related expenses in H1 2025[52] - The percentage of administrative expenses to the Group's total revenue increased to approximately 14.3% (H1 2024: approximately 11.5%), mainly due to the decrease in total revenue during the current period[52] Loss for the Period For H1 2025, loss attributable to shareholders of the company was RMB 26.7 million, with basic loss per share of RMB 2.5 cents, indicating a widening loss year-on-year - For the six months ended June 30, 2025, loss attributable to shareholders of the company was RMB 26.7 million (H1 2024: loss attributable to shareholders of RMB 19.1 million)[53] - Basic loss per share of the company was RMB 2.5 cents (H1 2024: basic loss per share of the company was RMB 1.8 cents)[53] Adjusted Loss for the Period The Group's adjusted loss for the period was RMB 24.5 million, a widening from RMB 17.6 million in the prior year - The Group's adjusted loss for the period was RMB 24.5 million (H1 2024: adjusted loss for the period of RMB 17.6 million)[54] Cash Flows For H1 2025, net cash inflow from operating activities was RMB 86.0 million, primarily due to a decrease in prepayments, contrasting with a net outflow in the prior year - For the six months ended June 30, 2025, net cash inflow from operating activities was RMB 86.0 million (H1 2024: net cash outflow from operating activities of RMB 374.9 million), with this change primarily due to a decrease in prepayments as of June 30, 2025, compared to the balance as of December 31, 2024[55] Gearing Ratio As of June 30, 2025, the Group's gearing ratio was approximately 37.9%, an increase from 34.5% as of June 30, 2024, mainly due to increased interest-bearing bank borrowings - As of June 30, 2025, the Group's gearing ratio was approximately 37.9%, compared to approximately 34.5% as of June 30, 2024, primarily due to an increase in the Group's interest-bearing bank borrowings during the current period[56] - The gearing ratio is calculated as net debt divided by total capital plus net debt, where net debt includes interest-bearing bank borrowings, trade payables, and other payables and accrued items, less cash and cash equivalents[56] Liquidity and Capital Structure The Group's daily working capital primarily comes from internal operating activities and bank borrowings; as of June 30, 2025, cash and cash equivalents were approximately RMB 433.4 million, with interest-bearing bank borrowings of RMB 855.8 million - The Group's daily working capital is primarily sourced from cash flows generated from internal operating activities and bank borrowings[57] - As of June 30, 2025, the Group had cash and cash equivalents of approximately RMB 433.4 million (as of June 30, 2024: approximately RMB 232.0 million)[57] - As of June 30, 2025, the Group's interest-bearing bank borrowings amounted to RMB 855.8 million, bearing interest in RMB[57] Capital Commitments As of June 30, 2025, the Group had no significant capital commitments - As of June 30, 2025, the Group had no significant capital commitments[58] Foreign Exchange Risk Management The Group has transactional currency exposure from shares issued in currencies other than the functional currency of operating units, but currently does not intend to hedge, continuously monitoring economic conditions and foreign exchange risk - The Group has transactional currency exposure arising from shares issued in currencies other than the functional currency of the operating units[59] - Currently, the Group does not intend to hedge its exposure to foreign exchange fluctuations, but senior management continuously monitors economic conditions and foreign exchange risk, considering appropriate hedging measures when necessary[59] Significant Acquisitions, Disposals of Subsidiaries, Associates and Joint Ventures, and Material Investments As of June 30, 2025, the Group held a 19.0% equity interest in Zhejiang Gushang Intelligent Technology Co., Ltd., with a carrying amount of RMB 234.4 million, representing approximately 9.3% of total assets, with no other significant acquisitions, disposals, or investments during the period - As of June 30, 2025, the Group, through its wholly-owned subsidiaries, held an aggregate 19.0% equity interest in Zhejiang Gushang Intelligent Technology Co., Ltd., with a total carrying amount of RMB 234.4 million[60] - Gushang Intelligent Technology's principal business includes the construction of buildings and parking lots in Hangzhou Zijingang Science and Technology City, with the topping-out ceremony completed in December 2023[60] - As of June 30, 2025, the carrying amount of the investment in Gushang Intelligent Technology accounted for approximately 9.3% of the Group's total assets, with no other significant acquisitions, disposals, or investments during the current period[60] Future Plans for Material Investments or Capital Assets As of June 30, 2025, the Group had no specific plans for any material investments or acquisitions of capital assets outside the ordinary course of business - As of June 30, 2025, the Group had no specific plans for any material investments or acquisitions of capital assets outside the ordinary course of business[61] Contingent Liabilities Hengfei Holding Limited initiated legal proceedings against the company and executive director Mr. Chen Xiaoliang; on August 26, 2025, the Hong Kong High Court ruled in favor of the plaintiff, ordering the company to pay damages to be assessed, while claims against Mr. Chen Xiaoliang were dismissed - Hengfei Holding Limited commenced legal proceedings against the Company and Mr. Chen Xiaoliang, a shareholder and executive director, alleging improper retention, delayed return, and failure or refusal to return the plaintiff's share certificates in the Company, causing losses[62] - As of June 30, 2025, the Directors believed that the Company had a valid defense against the claim and that the amount of the claim could not be reliably estimated, thus no provision was made (other than for legal and other costs)[62] - On August 26, 2025, the Court of First Instance of the High Court of Hong Kong ruled in favor of the plaintiff, ordering the Company to pay damages (to be assessed separately) and legal costs; the plaintiff's claims against Mr. Chen Xiaoliang were dismissed[63] Pledge of Assets As of June 30, 2025, the Group recorded pledged deposits of RMB 519.4 million as collateral for interest-bearing bank borrowings, an increase from the end of 2024 - As of June 30, 2025, the Group recorded pledged deposits of RMB 519.4 million as collateral for interest-bearing bank borrowings (as of December 31, 2024: RMB 379.5 million)[64] Events After Reporting Period On August 26, 2025, the Hong Kong High Court ruled on the legal proceedings initiated by Hengfei Holding Limited against the company and Mr. Chen Xiaoliang, as detailed in the "Contingent Liabilities" section - On August 26, 2025, the Court of First Instance of the High Court of Hong Kong ruled on the legal proceedings initiated by Hengfei Holding Limited against the Company and Mr. Chen Xiaoliang, a shareholder and executive director[65] Organization and Talent Assurance As of June 30, 2025, the Group had 498 employees, with staff costs and employee benefits expenses of approximately RMB 68.8 million; the company prioritizes identifying and developing high-potential talent and incentivizes them through share options and share awards - As of June 30, 2025, the Group had 498 employees (December 31, 2024: 493), including 81 sales employees, 62 administrative employees, 222 operations employees, and 133 R&D employees[66] - Staff costs and employee benefits expenses for the six months ended June 30, 2025, were approximately RMB 68.8 million (H1 2024: approximately RMB 66.8 million)[66] - Identifying and developing high-potential talent has been a top priority for the company's management this year, with incentives provided through the granting of share options and share awards[66] Social Responsibility Adhering to the philosophy of "serving the people and giving back to society," the Group actively contributes to society, donating RMB 24 thousand to the Hangzhou Dianzi University Education Development Foundation during this period - The Group adheres to the philosophy of "serving the people and giving back to society," actively seeking opportunities to contribute to society and create a better living environment for local communities[67] - The Group donated RMB 24 thousand to the Hangzhou Dianzi University Education Development Foundation during the current period[67] Future Outlook Looking ahead to H2 2025, the overall growth of the internet advertising industry is expected to be limited; the Group will focus on internal cost reduction and efficiency improvement while expanding business capabilities to increase revenue from non-internet advertising businesses - Due to the significant impact of macroeconomic conditions on advertisers' budgets and preferences, the Group's internet advertising business experienced a slight decline in revenue and gross profit for the six months ended June 30, 2025[68] - Looking ahead to H2 2025, the overall growth of the internet advertising industry is expected to be very limited[68] - The Group will focus on internal cost reduction and efficiency improvement while striving to expand its business capabilities and increase revenue from non-internet advertising businesses[68] Other Information Interim Dividend The Board does not recommend the declaration of any interim dividend for the current period - The Board does not recommend the declaration of any interim dividend for the current period (H1 2024: nil)[69] Corporate Governance Practices The company is committed to maintaining high standards of corporate governance and has adopted the Corporate Governance Code in Appendix C1 of the Listing Rules; despite the Chairman and CEO being the same person, the Board believes this arrangement enhances decision-making efficiency and execution, establishing sufficient balance of power and appropriate safeguards - The Company has adopted the Corporate Governance Code as set out in Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited as its own corporate governance code[70] - Mr. Chen Xiaoliang currently holds the positions of Chairman and Chief Executive Officer of the Company, and the Board believes this arrangement will enhance decision-making efficiency and execution processes[70] - The Board believes that a sufficient balance of power and appropriate safeguards have been established, and Mr. Chen Xiaoliang holding both positions will not negatively impact the balance of power and authority between the Board and the Company's senior management team[72] Standard Code for Securities Transactions The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers in Appendix C3 of the Listing Rules, and all directors have confirmed compliance during the reporting period - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules as its own code of conduct for directors' securities transactions[73] - Following specific inquiries with all Directors, each Director has confirmed compliance with the required standards set out in the Standard Code for the six months ended June 30, 2025[73] Purchase, Sale or Redemption of the Company's Listed Securities During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities, and as of June 30, 2025, the company held no treasury shares - During the current period, neither the Company nor any of its subsidiaries or consolidated affiliated entities purchased, sold, or redeemed any of the Company's listed securities[74] - As of June 30, 2025, the Company held no treasury shares[74] Audit Committee The Board's Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, in conjunction with the company's management - The Board's Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, in conjunction with the company's management[75] Publication of Interim Results and 2025 Interim Report on HKEX and Company Website This interim results announcement has been published on the HKEX website and the company's website, and the 2025 interim report containing all information required by the Listing Rules will be dispatched to shareholders and published in due course - This interim results announcement has been published on the HKEX website (https://www.hkexnews.hk) and the Company's website (http://www.duiba.cn)[76](index=76&type=chunk) - The 2025 interim report, containing all information required by the Listing Rules, will be dispatched to shareholders and published on the HKEX and the Company's respective websites in due course[76] Composition of the Board of Directors As of the announcement date, the Board comprises executive directors Mr. Chen Xiaoliang, Mr. Zhu Jiangbo, and Mr. Cheng Peng; non-executive director Ms. Yang Jiaqing; and independent non-executive directors Mr. Gan Weimin, Dr. Gao Fuping, and Dr. Shi Jianxun - As of the date of this announcement, the Board comprises executive directors Mr. Chen Xiaoliang, Mr. Zhu Jiangbo, and Mr. Cheng Peng; non-executive director Ms. Yang Jiaqing; and independent non-executive directors Mr. Gan Weimin, Dr. Gao Fuping, and Dr. Shi Jianxun[77]