中手游(00302) - 2025 - 中期财报

Company Information Board of Directors and Committees This section outlines the composition of the Board of Directors and its committees, including executive, non-executive, and independent non-executive members - The Board comprises three executive, two non-executive, and three independent non-executive directors, demonstrating high independence[87] - Mr. Xiao Jian serves concurrently as Chairman and CEO, an arrangement the company believes ensures internal leadership consistency and strategic planning efficiency[87] Company Basic Information This section provides essential company details, including registration, operational locations, professional advisors, and stock information - The company's registered office is in the Cayman Islands, with headquarters in Shenzhen, Guangdong, China, and its principal Hong Kong business location in Central[4][5] - The company's stock code is 0302, with principal bankers including China Guangfa Bank, China Merchants Bank, Guangdong Huaxing Bank, and China Everbright Bank[6] Financial Highlights Key Financial Indicators For H1 2025, revenue significantly decreased by 38.1% to RMB 763.034 million, net loss expanded, and total assets and equity declined from year-end 2024 Key Financial Data for the Six Months Ended June 30 | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 763,034 | 1,233,336 | | Loss for the period | (644,254) | (241,051) | | Loss for the period attributable to owners of the parent | (638,550) | (236,220) | | Adjusted net loss | (638,550) | (208,036) | | Basic and diluted loss per share (RMB) | (21.32) cents | (8.58) cents | | Adjusted basic and diluted loss per share (RMB) | (21.32) cents | (7.56) cents | Assets and Liabilities Data as of June 30 | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Total assets | 4,405,428 | 5,082,064 | | Total liabilities | 1,164,805 | 1,186,144 | | Total equity | 3,240,623 | 3,895,920 | Management Discussion and Analysis Business Review In H1 2025, the Group's revenue declined by 38.1%, and net loss expanded to RMB 644.3 million, mainly due to underperforming self-developed games and high marketing expenses - Group's business revenue was RMB 763.0 million, a 38.1% year-on-year decrease[9] - Net loss for the period was RMB 644.3 million, mainly impacted by "Sword and Fairy: World" underperformance, write-offs of prepayments, and fair value losses on financial assets totaling RMB 266.2 million[9] - Overseas business revenue reached RMB 235.0 million, a significant 33.2% year-on-year increase, accounting for 30.8% of total revenue[10] - Net cash flow from operating activities was RMB 108.7 million, with a rich product pipeline expected to reverse the operating situation in H2[10] Key Performance Indicators H1 2025 saw declines in average monthly active users, paying users, ARPPU, and new registered users, indicating challenges in user engagement and monetization Key Performance Indicators for the Six Months Ended June 30 | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Average Monthly Active Users (thousands) | 11,573 | 14,392 | | Average Monthly Paying Users (thousands) | 833 | 1,027 | | ARPPU (RMB) | 152.7 | 200.2 | | Total New Registered Users (thousands) | 42,824 | 47,297 | Global Distribution of IP Premium Games and Innovative Mini-Games The Group launched new IP premium and innovative mini-games, with domestic titles underperforming, but overseas distribution showed strong growth, increasing revenue by 33.2% - For the six months ended June 30, 2025, the Group's distribution business revenue was RMB 656.4 million[12] - Overseas business revenue reached RMB 235.0 million, a significant 33.2% year-on-year increase, accounting for 30.8% of the Group's total revenue[17] Domestic Distribution of IP Premium Games Domestic IP premium games like "Three Thousand Fantasy Worlds" and "Daily Life of a Chat Group" underperformed due to low user conversion, while "New Romance of the Three Kingdoms: Cao Cao's Story" maintained stable performance - "Three Thousand Fantasy Worlds" achieved 1 on the Apple App Store free chart in its first month, but revenue fell short of expectations due to low paying user conversion efficiency[13] - "Daily Life of a Chat Group" revenue performance was below expectations after launch, with ongoing updates and promotion strategy adjustments planned[13] - "New Romance of the Three Kingdoms: Cao Cao's Story" maintained stable market performance and player reputation, receiving high ratings on TapTap and the Apple App Store[14] Domestic Distribution of Innovative Mini-Games Innovative mini-games became a key growth driver, with "Chunqiu Xuanqi" exceeding RMB 100 million in cumulative revenue within three months, and other mini-games contributing profits - "Chunqiu Xuanqi" ranked 24 on WeChat Game's best-selling list in its first month, rising to 10 in the second month, with cumulative revenue exceeding RMB 100 million within three months, surpassing expectations[15] - Multiple past mini-games, including "Lingxiao Zhanji", "Xiaoge Chuizi", and "Quanmin Qiangshen: Bianjing Wangzhe", are operating steadily and continuously contributing profits[15] Overseas Game Distribution Overseas markets performed strongly, with "Niu Tou Ren GO" topping free charts and IP mobile games like "Battle Through the Heavens: Wushuang" achieving excellent rankings and revenue, despite some LTV challenges - "Niu Tou Ren GO" reached 1 on multiple Apple App Store free charts in Hong Kong, Macau, Taiwan, Singapore, and Malaysia, but LTV was lower than expected[16] - "Battle Through the Heavens: Wushuang" achieved 1 on Taiwan and Hong Kong Apple App Store free game charts in its first month after launch in Hong Kong, Macau, Taiwan, Singapore, and Malaysia, with good sales performance[16] - "Douluo Dalu: Shrek Academy" reached 1 on the Apple App Store free chart and 9 on the best-selling chart in Vietnam in its first month; "Douluo Dalu: Reversal of Time and Space" achieved 1 on the Taiwan Apple App Store free game chart and 19 on the best-selling chart in Hong Kong, Macau, and Taiwan in its first month[17] Long-Term Game Operations The Group maintains long-term operations for multiple IP premium games and innovative mini-games, such as "One Piece: Burning Will," which continued to contribute stable revenue and profit in H1 2025 - "One Piece: Burning Will" has been online for over 9 years, and "Quanmin Qiangshen: Bianjing Wangzhe" for over 6 years, both continuously contributing revenue and profit[18] - Multiple IP premium games like "New Sword and Fairy: Love and Destiny", "One Piece: Blood Route", and "Dynasty Warriors: Overlord", along with innovative mini-games such as "Lingxiao Zhanji", are all operating steadily[18] Self-Developed Games Self-developed game "Sword and Fairy: World" severely underperformed, causing significant financial losses; the Group has since restructured the project, redesigned monetization, and will focus on core competencies and risk control - Self-developed game "Sword and Fairy: World" underperformed after launch, revealing quality defects such as excessive size, low graphic precision, and poor user guidance, leading to significantly lower-than-expected revenue and substantial financial losses[19] - The Group has optimized the organizational structure and personnel for "Sword and Fairy: World", replaced the project leader, and redesigned the monetization model to recover initial investments[19] - Wenmai Interactive's self-developed Three Kingdoms strategy game "City Lord's World" (overseas version "Three Kingdoms: Heroes' Uprising") has launched in Hong Kong, Macau, Taiwan, Singapore, and Malaysia, achieving 1 on the Taiwan Apple App Store free chart[20] - Wenmai Interactive's self-developed new legend-genre game "Code: Dark Night Legend" will be delayed until H2 2025, aiming to become a benchmark product in its category[20] 《仙剑奇侠传》IP Operations The Group actively builds the "Sword and Fairy IP Universe" with diverse 30th-anniversary activities across games, film, and literature, collaborating on animated and live-action productions, resulting in a 134.8% increase in IP licensing revenue - The Group actively builds the "Sword and Fairy IP Universe", launching 30th-anniversary events across games, film, interactive entertainment, licensed merchandise, and physical derivatives[22] - Collaborating with Tencent Penguin Pictures for "Sword and Fairy 3" animated series, and with Bilibili for "Sword and Fairy 4" and "Sword and Fairy 1" animated works[22] - Upcoming original live-action dramas "Sword and Fairy: Stained Dust Returns" and "Sword and Fairy 2 Gaiden: Yiru's Story" are set to capitalize on the popularity of three new Sword and Fairy TV series released in early 2024[22] - For the six months ended June 30, 2025, "Sword and Fairy" IP licensing revenue was RMB 33.1 million, a 134.8% increase compared to the same period in 2024[25] Large-Scale Application of AIGC Technology The Group is vigorously applying AIGC technology in game development, marketing, and operations, integrating it into daily processes to significantly enhance creative generation and operational efficiency - AIGC technology is now a daily part of marketing and distribution, used for generating creative scripts, content, and promotional images[26] - AI content engine intelligently generates gameplay designs and event plans, significantly improving game operational efficiency[26] Awards and Honors The Group was re-recognized as a "National Key Cultural Export Enterprise" and received multiple industry awards, highlighting its achievements in game quality, ESG disclosure, and cultural dissemination - The Group was successfully re-selected as a National Key Cultural Export Enterprise, acknowledging its efforts in exploring the internationalization of Chinese stories[27] Major Awards and Honors in 2025 | Award/Honor | Date of Award | Awarding Body/Authority | | :--- | :--- | :--- | | 2025 National Key Cultural Export Enterprise | May 2025 | Ministry of Commerce | | ESG Information Disclosure Excellence Enterprise | July 2025 | Gamma Data | | Content Co-creation Pioneer Award ("Battle Through the Heavens: Peak Showdown") | July 2025 | Huawei Game Center | | 2025 Strong Foundation Leading Game Enterprise "White Horse Award" | August 2025 | Gamma Data | | Most Influential Enterprise in Smart Terminal Field | August 2025 | China Software Industry Association Smart Cloud Branch (Hardcore Alliance) | | Smart Terminal Annual Most Anticipated Game ("Naruto: Konoha Masters") | August 2025 | China Software Industry Association Smart Cloud Branch (Hardcore Alliance) | Social Responsibility The Group actively practices social responsibility, integrating environmental concepts, supporting the "CMGE Dream Library" project, and promoting industry self-regulation to protect minors, with underage players contributing less than 0.01% of China's game revenue - The Group adheres to environmental principles, reducing carbon emissions through paperless approvals and online meetings, and was recognized as an "ESG Information Disclosure Excellence Enterprise" by Gamma Data in July 2025[29] - Long-term support for the "CMGE Dream Library" project, having established 13 libraries, focusing on healthy learning and growth for youth[29] - Actively promotes industry self-regulation, participates in multiple online game standard developments, strictly adheres to national regulations for real-name authentication and anti-addiction systems, with underage players (under 18) accounting for less than 0.01% of China's game revenue[30] H2 2025 Outlook The Group will execute a "business focus + cost control" strategy, expanding mini-game distribution and overseas markets, focusing self-development on legend-genre games, leveraging AI, and pursuing a Web3 strategy including "Sword and Fairy" IP RWA on-chain and "KKFun Esports" - The Group will firmly execute its "business focus + cost control" development strategy, deepening innovative mini-game distribution and overseas business expansion[31] - Self-development will focus on legend-genre games with proven success, strictly controlling R&D costs, and cautiously exploring self-developed innovative mini-games[31] - Will accelerate the RWA on-chain plan for the top-tier "Sword and Fairy" IP, launch a Web3 aggregated payment tool, and plan to launch the decentralized Web3 esports game platform "KKFun Esports"[44][45][46] Product Pipeline The Group plans to launch multiple new games in H2 2025, including "Naruto: Konoha Masters" and "Code: Dark Night Legend," across various genres and targeting markets like mainland China, Southeast Asia, Korea, and Japan Planned Product Pipeline for H2 2025 | Project | Latest Progress | Platform | Type | Distribution Region | License | | :--- | :--- | :--- | :--- | :--- | :--- | | Naruto: Konoha Masters | Launched | Mobile | Idle Card | Mainland China | Obtained | | Code: Dark Night Legend | Fourth Test | Mobile | Legend | Mainland China | Applying | | New Zhen Hun Jie | Under Development | Mini-Game/Mobile | Idle Card | Mainland China | Obtained | | Code: Immortal (formerly Code C) | Under Development | Mini-Game | Card | Mainland China | Applying | | Code: Legend (formerly Code D) | Under Development | Mini-Game | Card | Mainland China | Applying | | Douluo Dalu: Reversal of Time and Space | Under Development | Mobile | RPG | Southeast Asia | / | | Douluo Dalu: Shrek Academy | Under Development | Mobile | MMORPG | Korea | / | | Dynasty Warriors: Overlord | Under Development | Mobile | ACT | Japan | / | | Three Kingdoms: Heroes' Uprising (formerly Code A) | HK, Macau, Taiwan Launched | Mobile | Strategy | HK, Macau, Taiwan, Vietnam | / | | Three Kingdoms: Heroes' Uprising (formerly Code B) | Under Development | Mobile | Strategy | Korea | / | Global Distribution of IP Premium Games and Innovative Mini-Games (H2 Outlook) In H2, the Group will continue to launch IP premium games like "Naruto: Konoha Masters" and plans to release mini-game versions of "Code: Immortal," "Code: Legend," and "New Zhen Hun Jie," while expanding "Douluo Dalu: Reversal of Time and Space" to Southeast Asia, "Douluo Dalu: Shrek Academy" to Korea, and "Dynasty Warriors: Overlord" to Japan - "Naruto: Konoha Masters" launched in mainland China in July 2025, achieving 1 on the Apple App Store free chart in its first month[33] - Plans to launch multiple new mini-games in H2 2025, including "Code: Immortal" (Xianxia theme), "Code: Legend" (simulation management), and a mini-game version of "New Zhen Hun Jie"[34] - "Douluo Dalu: Reversal of Time and Space" is planned for launch in Southeast Asia in October 2025; "Douluo Dalu: Shrek Academy" in Korea within 2025; and "Dynasty Warriors: Overlord" in Japan in H2 2025[35] Self-Developed Games (H2 Outlook) Wenmai Interactive's "Three Kingdoms: Heroes' Uprising" launched in HK/Macau/Taiwan/Singapore/Malaysia, with further launches planned, while the new legend-genre game "Code: Dark Night Legend" is set for 2025 launch, aiming for breakthroughs in user scale and brand influence - Wenmai Interactive's self-developed Three Kingdoms strategy mobile game "City Lord's World" (overseas version "Three Kingdoms: Heroes' Uprising") officially launched in Hong Kong, Macau, Taiwan, Singapore, and Malaysia on July 31, 2025, with subsequent launches in Vietnam and Korea[36] - Wenmai Interactive's self-developed new legend-genre game "Code: Dark Night Legend" has undergone multiple tests and is set for official launch in 2025, expected to achieve breakthroughs in user scale, revenue contribution, and brand influence[38] 《仙剑奇侠传》IP Operations (H2 Outlook) The "Sword and Fairy" IP matrix will expand across games, comics, film, and merchandise, with collaborations for live-action dramas, radio dramas, digital collectibles, and a continued 30th-anniversary touring exhibition to enhance IP value - The "Sword and Fairy" IP matrix now covers games, comics, literature, content experience, entertainment real estate, film, animation, music, virtual idols, and derivative products[39] - Original live-action dramas "Sword and Fairy: Stained Dust Returns" and "Sword and Fairy 2 Gaiden: Yiru's Story" are in preparation, and a "Sword and Fairy" radio drama co-produced with RabbitU Platform is expected to be released in 2025[39] - Collaborating with Ant Group's Jingtan Technology to launch the "Sword and Fairy 30th Anniversary: Companionship Memorial Card" digital collectible, and with professional model agencies for limited edition statues and movable figures[40][41] - Following the successful "Sword and Fairy One Side" national touring exhibition in H1 2025, it will continue in multiple cities in H2, vigorously promoting Sword and Fairy IP culture[42] Web3 Strategic Layout The Group is accelerating its Web3 strategy, including "Sword and Fairy" IP RWA on-chain, a Web3 aggregated payment tool, and "KKFun Esports," forming partnerships to capitalize on new Hong Kong stablecoin regulations and expand its Web3 ecosystem - Accelerating the RWA on-chain plan for the top-tier "Sword and Fairy" IP, unlocking new vitality and commercial potential[45] - Plans to launch a Web3 aggregated payment tool, integrating fiat, global mainstream cryptocurrencies, and stablecoin payments, deeply embedding it into the game ecosystem and overseas business scenarios to optimize cross-border payment efficiency[45] - Plans to launch the decentralized Web3 esports game platform "KKFun Esports", expected to go live in overseas markets from late 2025 to early 2026[46] - Formed strategic partnerships with Hong Kong Monetary Authority stablecoin sandbox issuers, OSL Group, and Pangu to seize market opportunities from new Hong Kong stablecoin regulations[47][48] Conclusion The Group will continue its "IP premium games and innovative mini-games global distribution + self-development" strategy, focusing on "Sword and Fairy" IP operations to build core competitiveness and promote Chinese traditional culture - The Group will continue its "IP premium games and innovative mini-games global distribution + self-development" strategy[49] - Will focus on "Sword and Fairy" IP operations to build core competitiveness and promote excellent Chinese traditional culture[49] Other Information Use of Proceeds from Subscription of New Shares As of June 30, 2025, net proceeds from new share subscriptions were HKD 94.2 million, with HKD 25.0 million used for IP game business and the remaining HKD 69.2 million expected to be fully utilized by June 30, 2026 Use of Proceeds from Subscription of New Shares | Purpose | Net Proceeds (HKD millions) | Net Proceeds Utilized as of June 30, 2025 (HKD millions) | Net Proceeds Unutilized as of June 30, 2025 (HKD millions) | Expected Timeline for Full Utilization of Remaining Unutilized Net Proceeds | | :--- | :--- | :--- | :--- | :--- | | Further enhancing IP game distribution and development business through acquisitions and/or investments | 94.2 | 25.0 | 69.2 | By June 30, 2026 | Dividends The Board of Directors does not recommend the declaration of any interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the declaration of an interim dividend for the six months ended June 30, 2025[85] Changes in Directors' Information Mr. Weng Han Di was appointed a Justice of the Peace effective July 1, 2025; no other director information changes required disclosure during the period - Mr. Weng Han Di was appointed a Justice of the Peace by the Government of the Hong Kong Special Administrative Region, effective July 1, 2025[86] Corporate Governance Practices The Company complied with the Corporate Governance Code, except for the combined Chairman and CEO roles held by Mr. Xiao Jian, which the Board believes ensures leadership consistency and strategic efficiency, supported by high board independence - The Company complied with the Corporate Governance Code, but deviated from Code Provision C.2.1, which requires the roles of Chairman and CEO to be separate[87] - Mr. Xiao Jian concurrently serves as Chairman and CEO, an arrangement the Board believes ensures internal leadership consistency and enhances strategic planning efficiency[87] Directors' Securities Transactions The Company adopted the Model Code for securities transactions by directors, senior management, and employees, with all directors confirming full compliance during the period - The Company adopted the Model Code as the code of conduct for securities transactions by directors, senior management, and employees[88] - All directors confirmed full compliance with the Model Code from January 1, 2025, to June 30, 2025[88] Employee Remuneration and Relations As of June 30, 2025, the Group had 346 full-time employees, a significant reduction from 837 in 2024, offering competitive remuneration and training to attract and retain talent - As of June 30, 2025, the Group had approximately 346 full-time employees (June 30, 2024: 837 employees)[91] - The company provides competitive remuneration, a performance-based promotion system, and training programs to attract, retain, and motivate employees[91] Post-IPO Share Option Scheme The Company's Post-IPO Share Option Scheme, adopted in 2019, had 126,492,000 unexercised options as of June 30, 2025, representing approximately 4.22% of weighted average shares, to incentivize participants Changes in Outstanding Share Options for the Six Months Ended June 30, 2025 | Name of Grantee | Date of Grant | Closing Price of Shares on Grant Date (HKD) | Number of Shares for Unexercised Options as of January 1, 2025 | Number of Shares for Unexercised Options as of June 30, 2025 | Exercise Price per Share Option (HKD) | Option Exercise Period | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Mr. Xiao | Jan 20, 2023 | 1.96 | 2,750,000 | 2,750,000 | 2.50 | Jan 20, 2023 to Jan 19, 2026 | | Mr. Xiao | Apr 24, 2024 | 1.22 | 2,750,000 | 2,750,000 | 1.50 | Apr 24, 2024 to Apr 24, 2027 | | Mr. Weng | Jan 20, 2023 | 1.96 | 2,750,000 | 2,750,000 | 2.50 | Jan 20, 2023 to Jan 19, 2026 | | Mr. Weng | Apr 24, 2024 | 1.22 | 2,750,000 | 2,750,000 | 1.50 | Apr 24, 2024 to Apr 24, 2027 | | Mr. Fan Yingjie | Jan 20, 2023 | 1.96 | 800,000 | 800,000 | 2.50 | Jan 20, 2023 to Jan 19, 2026 | | Mr. Fan Yingjie | Apr 24, 2024 | 1.22 | 800,000 | 800,000 | 1.50 | Apr 24, 2024 to Apr 24, 2027 | | Mr. Zhang Shengyan | Jan 20, 2023 | 1.96 | 200,000 | 200,000 | 2.50 | Jan 20, 2023 to Jan 19, 2026 | | Mr. Zhang Shengyan | Apr 24, 2024 | 1.22 | 200,000 | 200,000 | 1.50 | Apr 24, 2024 to Apr 24, 2027 | | Mr. Jiang Yukai | Apr 24, 2024 | 1.22 | 200,000 | 200,000 | 1.50 | Apr 24, 2024 to Apr 24, 2027 | | Ms. Wu Qiqin | Jan 20, 2023 | 1.96 | 200,000 | 200,000 | 2.50 | Jan 20, 2023 to Jan 19, 2026 | | Ms. Wu Qiqin | Apr 24, 2024 | 1.22 | 200,000 | 200,000 | 1.50 | Apr 24, 2024 to Apr 24, 2027 | | Mr. Tang Liang | Jan 20, 2023 | 1.96 | 200,000 | 200,000 | 2.50 | Jan 20, 2023 to Jan 19, 2026 | | Mr. Tang Liang | Apr 24, 2024 | 1.22 | 200,000 | 200,000 | 1.50 | Apr 24, 2024 to Apr 24, 2027 | | Mr. Ho You Kai | Jan 20, 2023 | 1.96 | 200,000 | 200,000 | 2.50 | Jan 20, 2023 to Jan 19, 2026 | | Mr. Ho You Kai | Apr 24, 2024 | 1.22 | 200,000 | 200,000 | 1.50 | Apr 24, 2024 to Apr 24, 2027 | | Other Employees | Jan 20, 2023 | 1.96 | 40,715,000 | 40,715,000 | 2.50 | Jan 20, 2023 to Jan 19, 2026 | | Other Employees | Apr 24, 2024 | 1.22 | 72,700,000 | 71,377,000 | 1.50 | Apr 24, 2024 to Apr 24, 2027 | | Total | | | 127,815,000 | 126,492,000 | | | - As of June 30, 2025, the ratio of outstanding share options (126,492,000) under all schemes to the weighted average number of issued shares (2,995,413,777) for the period was approximately 4.22%[93] Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares, and Debentures As of June 30, 2025, directors and the chief executive held interests in Company shares and associated corporations through discretionary trusts, controlled entities, beneficial interests, and share options Directors' and Chief Executive's Interests in Shares | Name of Director/Chief Executive | Nature of Interest | Number of Shares Held/Interested | Approximate Percentage of Company's Interest | | :--- | :--- | :--- | :--- | | Mr. Xiao | Founder of discretionary trust, controlled corporate interest, beneficial interest, and other | 785,358,067(L) | 26.21% | | Mr. Weng | Controlled corporate interest, beneficial interest, and other | 824,887,663(L) | 27.53% | | Mr. Fan Yingjie | Beneficial interest | 2,518,000(L) | 0.08% | | Mr. Zhang Shengyan | Beneficial interest | 400,000(L) | 0.01% | | Mr. Jiang Yukai | Beneficial interest | 200,000(L) | 0.00% | | Ms. Wu Qiqin | Beneficial interest | 400,000(L) | 0.01% | | Mr. Tang Liang | Beneficial interest | 400,000(L) | 0.01% | | Mr. Ho You Kai | Beneficial interest | 400,000(L) | 0.01% | Directors' Interests in Associated Corporations | Name of Director | Name of Associated Corporation | Approximate Percentage of Shareholding | | :--- | :--- | :--- | | Mr. Xiao | Chengdu Zhuoxing | 31.53% | | Mr. Xiao | Shenzhen CMGE | 31.53% | | Mr. Xiao | Shenzhen Douyue | 31.53% | Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares As of June 30, 2025, substantial shareholders, including Mr. Xiao, Mr. Weng, and their controlled entities, along with other investors, held interests in the Company's shares, reflecting a complex ownership structure Substantial Shareholders' and Other Persons' Interests in Shares | Name of Shareholder/Person | Nature of Interest | Number of Shares Held | Approximate Percentage of Company's Interest | | :--- | :--- | :--- | :--- | | Mr. Xiao | Founder of discretionary trust, controlled corporate interest, beneficial owner, and other | 785,358,067(L) | 26.21% | | Trident Trust Company (B.V.I.) Limited | Trustee of trust | 763,908,067(L) | 25.50% | | ZSY Holding | Controlled corporate interest | 763,908,067(L) | 25.50% | | CMGE Brothers BVI | Beneficial owner and controlled corporate interest | 70,598,642(L) and 693,309,425(L) | 2.36% and 23.14% | | Mr. Weng | Controlled corporate interest, beneficial owner, and other | 824,887,663(L) | 27.53% | | Silver Joyce | Beneficial owner and controlled corporate interest | 123,750,238(L) and 693,309,425(L) | 4.13% and 23.14% | | Fairview Ridge | Beneficial owner | 693,309,425(L) | 23.14% | | Zhongrong Trust | Controlled corporate interest | 369,461,107(L) | 12.33% | | Yuanfu Investment Co., Ltd. | Beneficial owner | 295,032,214(L) | 9.84% | - Changpei Cayman is held 0.004% by general partner Ambitious Profit and 99.996% by limited partner Zhejiang Century Huatong Group Co., Ltd.[99] Review Report on Interim Condensed Consolidated Financial Statements Introduction This section confirms the review of the interim condensed consolidated financial statements for H1 2025, conducted in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" - The Group's interim condensed consolidated financial statements for the six months ended June 30, 2025, have been reviewed[102] - The review was conducted in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[102] Scope of Review The review was conducted under Hong Kong Standard on Review Engagements 2410, with a scope narrower than an audit, therefore no audit opinion is expressed - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410, with a scope narrower than an audit[103] - No audit opinion is expressed[103] Conclusion The review found no material matters indicating that the interim condensed consolidated financial statements were not prepared in accordance with Hong Kong Accounting Standard 34 - No matters were identified indicating that the interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[104] Interim Condensed Consolidated Statement of Profit or Loss Profit or Loss Statement Overview For H1 2025, Group revenue significantly decreased to RMB 763.034 million, and loss for the period expanded to RMB 644.254 million Interim Condensed Consolidated Statement of Profit or Loss (for the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 763,034 | 1,233,336 | | Cost of sales | (504,455) | (860,572) | | Gross profit | 258,579 | 372,764 | | Other income and gains, net | 8,072 | 4,631 | | Selling and distribution expenses | (372,861) | (148,554) | | Administrative expenses | (85,829) | (82,257) | | Research and development costs | (93,908) | (110,173) | | Net impairment losses on financial assets | (52,291) | (62,859) | | Impairment of goodwill | (11,524) | (16,844) | | Write-off of prepayments | (189,487) | (65,240) | | Fair value losses on financial assets at fair value through profit or loss | (76,728) | (59,099) | | Impairment of other intangible assets | — | (24,251) | | Other expenses | (6,569) | (10,396) | | Finance costs | (10,360) | (11,109) | | Share of profits and losses of associates | (11,646) | 2,780 | | Loss before tax | (644,552) | (210,607) | | Income tax credit/(expense) | 298 | (30,444) | | Loss for the period | (644,254) | (241,051) | | Attributable to owners of the parent | (638,550) | (236,220) | | Basic and diluted loss per share | RMB (21.32) cents | RMB (8.58) cents | Interim Condensed Consolidated Statement of Comprehensive Income Comprehensive Income Statement Overview For H1 2025, the Group recorded a loss of RMB 644.254 million, and with other comprehensive loss of RMB 11.043 million, total comprehensive loss reached RMB 655.297 million Interim Condensed Consolidated Statement of Comprehensive Income (for the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss for the period | (644,254) | (241,051) | | Exchange differences on translating foreign operations | 18,599 | 1,693 | | Exchange differences on translating functional currency to presentation currency | (29,642) | 10,636 | | Other comprehensive (loss)/income for the period, net of tax | (11,043) | 12,329 | | Total comprehensive loss for the period | (655,297) | (228,722) | | Attributable to owners of the parent | (649,593) | (223,891) | | Non-controlling interests | (5,704) | (4,831) | Interim Condensed Consolidated Statement of Financial Position Financial Position Statement Overview As of June 30, 2025, total assets decreased to RMB 4,405.428 million, with total liabilities at RMB 1,164.805 million, total equity at RMB 3,240.623 million, a current ratio of 1.15x, and gearing ratio of 13.6% Interim Condensed Consolidated Statement of Financial Position (as of June 30) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total non-current assets | 3,134,603 | 3,484,768 | | Total current assets | 1,270,825 | 1,597,296 | | Total assets | 4,405,428 | 5,082,064 | | Total current liabilities | 1,108,357 | 1,110,080 | | Total non-current liabilities | 56,448 | 76,064 | | Total liabilities | 1,164,805 | 1,186,144 | | Equity attributable to owners of the parent | 3,252,703 | 3,902,296 | | Non-controlling interests | (12,080) | (6,376) | | Total equity | 3,240,623 | 3,895,920 | | Current ratio | 1.15 times | 1.44 times | | Gearing ratio | 13.6% | 13.2% | Interim Condensed Consolidated Statement of Changes in Equity Equity Changes Statement Overview For H1 2025, total equity attributable to owners of the parent decreased from RMB 3,902.296 million to RMB 3,252.703 million, mainly due to a loss of RMB 638.550 million and exchange differences Interim Condensed Consolidated Statement of Changes in Equity (for the six months ended June 30) | Indicator | January 1, 2025 (Audited) (RMB thousands) | Loss for the period (RMB thousands) | Exchange differences on translation (RMB thousands) | June 30, 2025 (Unaudited) (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Total equity attributable to owners of the parent | 3,902,296 | (638,550) | (11,043) | 3,252,703 | | Non-controlling interests | (6,376) | (5,704) | — | (12,080) | | Total equity | 3,895,920 | (644,254) | (11,043) | 3,240,623 | Interim Condensed Consolidated Statement of Cash Flows Cash Flow Statement Overview For H1 2025, the Group generated RMB 108.732 million from operations and RMB 14.145 million from investing, while using RMB 90.470 million in financing, ending with RMB 133.349 million in cash and equivalents Interim Condensed Consolidated Statement of Cash Flows (for the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net cash from operating activities | 108,732 | 12,134 | | Net cash from/(used in) investing activities | 14,145 | (59,517) | | Net cash used in financing activities | (90,470) | (4,585) | | Net increase/(decrease) in cash and cash equivalents | 32,407 | (51,968) | | Cash and cash equivalents at beginning of period | 101,756 | 210,609 | | Net effect of exchange rate changes on cash and cash equivalents | (814) | 6,141 | | Cash and cash equivalents at end of period | 133,349 | 164,782 | Notes to the Interim Condensed Consolidated Financial Statements 1. Company and Group Information The Company, incorporated in the Cayman Islands on March 20, 2018, primarily engages in mobile game publishing, development, and IP licensing across Asia, alongside investment activities in mainland China - The Company was incorporated in the Cayman Islands on March 20, 2018[117] - The Company's subsidiaries are primarily engaged in mobile game publishing, game development, and intellectual property licensing in mainland China, Hong Kong, Taiwan, Korea, and Japan, as well as investment activities in mainland China[117] 2. Basis of Preparation These interim condensed consolidated financial statements are prepared under Hong Kong Accounting Standard 34 and should be read with the 2024 annual report - The interim condensed consolidated financial statements have been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[118] - They should be read in conjunction with the 2024 annual report[118] 3. Accounting Policies The Group applied consistent accounting policies and methods as in the 2024 annual report, with new 2025 amendments having no significant impact - The Group has applied the same accounting policies and calculation methods as in the 2024 annual report[119] - New amendments first applied in 2025 had no significant impact on the Group's accounting policies[119] 4. Operating Segment Information The Group's operating segments include game publishing, development, and IP licensing, all of which experienced significant revenue declines in H1 2025 Operating Segment Revenue (for the six months ended June 30) | Segment | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Game publishing | 656,364 | 999,925 | | Game development | 73,193 | 126,330 | | Intellectual property licensing | 33,477 | 107,081 | | Total | 763,034 | 1,233,336 | 5. Revenue Group revenue decreased by 38.1% to RMB 763.0 million in H1 2025, driven by declines in game publishing, development, and IP licensing, despite increased overseas revenue Revenue by Type of Goods or Services (for the six months ended June 30) | Type of Goods or Services | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Mobile game publishing services | 656,364 | 999,925 | | Game development related services | 73,193 | 126,330 | | Intellectual property licensing | 33,477 | 107,081 | | Total revenue | 763,034 | 1,233,336 | Revenue by Geographical Market (for the six months ended June 30) | Geographical Market | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Mainland China | 528,055 | 1,056,960 | | Other countries/regions | 234,979 | 176,376 | | Total | 763,034 | 1,233,336 | - Revenue decrease primarily due to a 34.4% decline in game publishing revenue, a 42.1% decline in game development revenue, and a 68.7% decline in IP licensing revenue (excluding a 134.8% increase in "Sword and Fairy" IP licensing revenue)[54] 6. Other Income and Gains, Net For H1 2025, other income and gains, net, increased by 74.3% to RMB 8.072 million, primarily due to higher government grants and exchange gains Other Income and Gains, Net (for the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank interest income | 137 | 1,047 | | Government grants | 3,203 | 2,171 | | Exchange gains | 2,578 | — | | Others | 2,154 | 1,413 | | Total | 8,072 | 4,631 | - Other income and gains increased by 74.3%, primarily due to increased government grants[57] 7. Finance Costs For H1 2025, finance costs decreased by 6.7% to RMB 10.360 million, mainly due to lower interest expenses from reduced bank and other borrowings Finance Costs (for the six months ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest expense on bank and other borrowings | 9,980 | 10,364 | | Interest expense on lease liabilities | 380 | 745 | | Total | 10,360 | 11,109 | - Finance costs decreased by 6.7%, primarily due to lower interest expenses resulting from a decrease in total bank and other borrowings[65] 8. Loss Before Tax For H1 2025, loss before tax significantly increased to RMB 644.552 million, driven by higher selling and distribution expenses, prepayment write-offs, financial asset fair value losses, and associate losses Major Components of Loss Before Tax (for the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Commissions to distribution channels and third-party game developers | 389,675 | 683,585 | | Promotion expenses | 364,282 | 136,027 | | Employee benefit expenses | 130,703 | 188,198 | | Write-off of prepayments | 189,487 | 65,240 | | Fair value losses on financial assets at fair value through profit or loss | 76,728 | 59,099 | | Share of profits and losses of associates | (11,646) | 2,780 | | Loss before tax | (644,552) | (210,607) | - Selling and distribution expenses increased by 151.0% to RMB 372.9 million, primarily due to marketing and promotion expenses for "Sword and Fairy: World" and several new games[60] - Other expenses increased by 61.7% to RMB 284.3 million, mainly due to write-off of prepayments of RMB 189.5 million and fair value losses on financial assets of RMB 76.7 million[64] 9. Income Tax The Group's income tax shifted from an expense to a credit in H1 2025 due to deferred tax credits, with subsidiaries benefiting from preferential tax rates and a 200% R&D super deduction policy Major Components of Income Tax (Credit)/Expense for the Period (for the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current tax expense | 12,656 | 6,489 | | Deferred tax (credit)/expense | (12,954) | 23,955 | | Total tax (credit)/expense for the period | (298) | 30,444 | - Income tax shifted from an expense to a credit, primarily due to the recognition of deferred income tax credits of RMB 13.0 million[68] - Shenzhen Douyue, Shenzhen CMGE, Chengdu Zhuoxing, Beijing Wenmai Interactive Technology Co., Ltd., Shengyue Software (Shenzhen) Co., Ltd., and others are recognized as high-tech enterprises, enjoying a preferential enterprise income tax rate of 15%[129][131] - Enterprises engaged in R&D activities are entitled to deduct 200% of R&D expenses incurred when determining taxable profits[133] 10. Dividends The Company's Board of Directors resolved not to pay an interim dividend to shareholders for the six months ended June 30, 2025 - The Board of Directors resolved not to pay an interim dividend to shareholders for the six months ended June 30, 2025[135] 11. Loss Per Share Attributable to Ordinary Equity Holders of the Parent For H1 2025, basic and diluted loss per share attributable to ordinary equity holders of the parent were RMB (21.32) cents, with diluted loss matching basic loss due to option exercise prices exceeding market prices Loss Per Share Attributable to Ordinary Equity Holders of the Parent (for the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss attributable to ordinary equity holders of the parent used in calculating basic and diluted loss per share (RMB thousands) | (638,550) | (236,220) | | Weighted average number of ordinary shares in issue during the period used in calculating basic and diluted loss per share | 2,995,413,777 | 2,752,241,000 | | Basic and diluted loss per share | RMB (21.32) cents | RMB (8.58) cents | - Basic and diluted loss per share are the same because the exercise price of share options exceeded the average market price of ordinary shares during the relevant period[136] 12. Property and Equipment For H1 2025, the Group acquired RMB 76 thousand in assets and disposed of RMB 955 thousand in assets, resulting in a net loss on disposal of RMB 882 thousand - The Group acquired assets with a cost of RMB 76 thousand (2024: RMB 1,491 thousand)[137] - Disposed of assets with a net book value of RMB 955 thousand, resulting in a net loss on disposal of RMB 882 thousand[137] 13. 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 1,188.471 million, mainly unlisted equity investments and convertible loans, with investments in Guohong Jiaxin Capital and Angel Ventures accounted for similarly Financial Assets at Fair Value Through Profit or Loss (as of June 30) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Listed equity investments | 38,571 | 63,296 | | Unlisted equity investments | 873,052 | 883,656 | | Convertible loans | 276,848 | 291,557 | | Total | 1,188,471 | 1,238,509 | - The Group's investments in Guohong Jiaxin Capital and Angel Ventures are accounted for at fair value through profit or loss, as there is no control or significant influence[139] 14. Trade and Bills Receivables As of June 30, 2025, net trade and bills receivables decreased to RMB 530.060 million; the Group typically allows 180-270 day credit terms and has discounted some bills receivables with full recourse Trade and Bills Receivables (as of June 30) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Net trade receivables | 522,409 | 817,531 | | Bills receivables | 7,651 | 28,814 | | Total | 530,060 | 846,345 | Ageing Analysis of Trade Receivables (as of June 30) | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 6 months | 136,376 | 365,996 | | 6 months to 1 year | 112,908 | 180,511 | | 1 year to 18 months | 69,409 | 136,640 | | 18 months to 2 years | 129,474 | 117,213 | | Over 2 years | 74,242 | 17,171 | | Total | 522,409 | 817,531 | - The Group generally allows a credit period of 180 days, which can be extended to a maximum of 270 days for major channels and other counterparties[142] 15. Prepayments, Other Receivables and Other Assets As of June 30, 2025, prepayments, other receivables, and other assets totaled RMB 1,279.040 million, primarily comprising non-current prepaid IP license fees and current prepaid minimum guarantees Prepayments, Other Receivables and Other Assets (as of June 30) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-current portion: | | | | Prepayments | 667,138 | 887,365 | | Other receivables | 15,324 | 15,042 | | Current portion: | | | | Prepayments | 447,051 | 479,658 | | Deposits and other receivables | 129,992 | 121,222 | | Contract costs | 19,535 | 37,635 | | Total | 1,279,040 | 1,540,922 | - Prepayments primarily include prepaid minimum guarantees of approximately RMB 419.331 million and prepaid IP license fees of approximately RMB 567.638 million[146] 16. Trade Payables As of June 30, 2025, total trade payables increased to RMB 233.982 million; these are non-interest bearing and typically settled within 180 days Ageing Analysis of Trade Payables (as of June 30) | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 months | 61,428 | 92,507 | | 3 to 6 months | 52,597 | 51,434 | | 6 months to 1 year | 64,179 | 25,450 | | Over 1 year | 55,778 | 49,192 | | Total | 233,982 | 218,583 | - Trade payables are non-interest bearing and typically settled within 180 days[147] 17. Share Capital As of June 30, 2025, the Company had 2,995,413,777 issued ordinary shares with RMB 2.089 million share capital; 2024 saw new share allotments via subscriptions and some share cancellations Share Capital (as of June 30) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Issued and fully paid: 2,995,413,777 ordinary shares | 2,089 | 2,089 | - On July 22, 2024, 100,000,000 subscription shares were allotted and issued for a total consideration of HKD 168,000,000[148] - On October 22, 2024, 105,777,777 subscription shares were allotted and issued for a total consideration of HKD 95,200,000[149] - On November 1, 2024, 38,000,000 consideration shares were allotted and issued to acquire intellectual property rights related to "Sword and Fairy"[149] - On December 19, 2024, 1,036,000 ordinary shares were cancelled[150] 18. Share-Based Payments The Company's share option scheme incentivizes participants; no share-based payment expenses were recognized in H1 2025 (vs. RMB 28.184 million in H1 2024), with fair value estimated using a binomial model - The Company implements a share option scheme to incentivize and reward eligible participants who contribute to the Group's business success[151] - For the six months ended June 30, 2025, the Group did not recognize any share-based payment expenses[153] - For the six months ended June 30, 2024, the Group recognized share-based payment expenses of RMB 28.184 million[153] Share Option Valuation Model Input Data | Indicator | 2024 Share Options | 2023 Share Options | | :--- | :--- | :--- | | Share option pricing model used | Binomial model | Binomial model | | Exercise price (HKD per share) | HKD 1.50 | HKD 2.50 | | Expected dividend | 0% | 0% | | Expected volatility | 52.14% | 54.87% | | Risk-free interest rate | 3.86% | 3.42% | | Expected life of options (years) | 3 years | 3 years | | Spot price (HKD per share) | HKD 1.22 | HKD 1.96 | | Fair value at grant date (RMB) | RMB 27,411,000 | RMB 26,105,000 | 19. 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[155] 20. Commitments As of June 30, 2025, the Group's capital commitments amounted to RMB 104.732 million, primarily for the purchase of IP and game licenses Capital Commitments (as of June 30) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Contracted but not provided for: Purchase of IP and game licenses | 104,732 | 134,117 | - Capital commitments are primarily for the purchase of IP and game licenses[78] 21. Related Party Transactions The Group engaged in related party transactions, including distribution services, production fees, and key management remuneration, with outstanding balances due from Mr. Fan Yingjie and Shanghai Fengguo, and due to Guangzhou Zhonghui as of June 30, 2025 Transactions with Related Parties (for the six months ended June 30) | Type of Transaction | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Production service fees received from Guangzhou Zhonghui Digital Co., Ltd. | 2,043 | — | | Distribution services provided to Shanghai Fengguo Network Technology Co., Ltd. | 1,111 | 5 | | Revenue sharing received from Shenzhen Huohua Huanjing Interactive Entertainment Co., Ltd. | — | 18,953 | Outstanding Balances with Related Parties (as of June 30) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Amount due from Mr. Fan Yingjie | 7,851 | 7,851 | | Amount due from Shanghai Fengguo Network Technology Co., Ltd. | 2,987 | 2,829 | | Amount due to Guangzhou Zhonghui Digital Co., Ltd. | 1,169 | — | Key Management Personnel Remuneration (for the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Directors' fees | 718 | 658 | | Salaries, allowances and benefits in kind | 3,721 | 4,558 | | Equity-settled share-based payment expenses | — | 17,766 | | Pension scheme contributions | 228 | 251 | | Total | 4,667 | 23,233 | 22. Financial Instruments by Category The Group's financial assets primarily include those at fair value through profit or loss and at amortized cost, while financial liabilities mainly comprise those at amortized cost, such as trade payables and borrowings Financial Assets (as of June 30) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Financial assets at fair value through profit or loss | 1,188,471 | 1,238,509 | | Financial assets measured at amortized cost | 819,563 | 1,095,045 | | Total | 2,008,034 | 2,333,554 | Financial Liabilities (as of June 30) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Financial liabilities measured at amortized cost | 819,769 | 803,834 | | Other financial liabilities (lease liabilities) | 13,455 | 22,503 | | Total | 833,224 | 826,337 | 23. Fair Value of Financial Instruments and Fair Value Hierarchy Financial instrument fair values approximate carrying amounts; unlisted equity investments and convertible loans are valued using discounted cash flow and other models, with Level 3 assets decreasing during the period - The fair values of financial assets or liabilities measured at amortized cost are similar to their respective carrying amounts[165] - The fair values of unlisted equity investments and convertible loans are estimated using discounted cash flow method, adjusted net asset value method, and other option pricing models[165] Fair Value Hierarchy of Assets Measured at Fair Value (as of June 30) | Item | Level 1 (RMB thousands) | Level 2 (RMB thousands) | Level 3 (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | June 30, 2025 | | | | | | - Listed equity investments | 38,571 | — | — | 38,571 | | - Unlisted equity investments | — | 432,752 | 440,300 | 873,052 | | - Convertible loans | — | — | 276,848 | 276,848 | | Total | 38,571 | 432,752 | 717,148 | 1,188,471 | | December 31, 2024 | | | | | | - Listed equity investments | 63,296 | — | — | 63,296 | | - Unlisted equity investments | — | 438,526 | 445,130 | 883,656 | | - Convertible loans | — | — | 291,557 | 291,557 | | Total | 63,296 | 438,526 | 736,687 | 1,238,509 | Changes within Level 3 Fair Value Measurements (as of June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Balance at beginning of period | 736,687 | 1,382,552 | | Losses recognized in profit or loss | (55,109) | (560,066) | | Additions | 52,769 | 4,071 | | Disposals | (17,199) | (89,870) | | Balance at end of period | 717,148 | 736,687 | 24. Events After the Reporting Period As of the approval date of the interim condensed consolidated financial statements, there were no significant events after the reporting period - As of the approval date of the interim condensed consolidated financial statements, there were no significant events after the reporting period[169] 25. Approval of Interim Condensed Consolidated Financial Statements These interim condensed consolidated financial statements were approved and authorized for issue by the Company's Board of Directors on August 27, 2025 - The interim condensed consolidated financial statements were approved and authorized for issue by the Company's Board of Directors on August 27, 2025[170] Definitions Terms and Glossary This section provides definitions for key terms and vocabulary used in this interim report to ensure clear understanding of the content