艾德韦宣集团(09919) - 2025 - 中期财报

Company Information This section outlines the company's governance structure, including its board and committees, along with essential corporate and listing details Board of Directors and Committees This section details the composition of EDGII Group Holdings Limited's Board of Directors, including executive and independent non-executive directors, and various professional committees - Executive Directors include Mr. Liu Kam Yiu (Co-Chairman and CEO), Mr. Ng Po Sing (Co-Chairman and CFO), Mr. Chan Wai Pan (Co-COO), and Ms. Lau Wai Man (Co-COO)[3] - Independent Non-Executive Directors are Ms. Cheung Siu Wan, Mr. Yu Lung Kwan, and Dr. Cheung Wah Keung[3] - The company has established Audit, Remuneration, Nomination, Corporate Governance, IP Development, and Environmental, Social and Governance Committees to ensure sound corporate governance[3] Corporate Information and Listing Details This section provides details on the company's auditor, registered office, principal place of business, share registrar, principal bankers, investor relations consultant, legal counsel, and listing information on the HKEX Main Board - The company's auditor is Ernst & Young[3] - The company's headquarters and principal place of business in China are located at 8/F, Block A, No. 399 Liuzhou Road, Xuhui District, Shanghai[4] - The company's shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on January 16, 2020, with stock code 9919[6] Interim Business Cases This section showcases the Group's successful projects across experiential marketing, digital marketing, and IP expansion, highlighting its capabilities with leading brands Experiential Marketing This section highlights the Group's successful experiential marketing cases, including large-scale events for luxury brands like Louis Vuitton, BMW, and Nike, demonstrating its excellence in high-end brand event planning and execution - Planned the "Voyage Extraordinaire" exhibition for LOUIS VUITTON[8] - Organized the "2025 BMW New Generation Driving Pleasure Concept Car Performance Challenge" for BMW[9] - Hosted the "Leading the Way" fashion show for NIKE[17] Digital Marketing and Promotion This section showcases the Group's digital marketing and promotion cases, including social media operations and digital promotion services for brands like ALEXANDER WANG and LA PRAIRIE, reflecting its online marketing expertise - Provided social media operation services for ALEXANDER WANG and SK-II[21] - Planned the "Caviar Sky Journey" digital marketing campaign for LA PRAIRIE[21] IP Expansion This section presents the Group's IP expansion cases, including planning the "2025 Shanghai Summer Grand Opening" event for Shanghai Design Week, demonstrating its capabilities in IP project operation and brand collaboration - Planned the "2025 Shanghai Summer Grand Opening" event for SHANGHAI DESIGN WEEK[23] Awards and Honors This section lists the various industry awards and honors received by the Group, recognizing its leading position and innovative capabilities in the marketing industry Company Awards This section lists multiple industry awards received by EDGII Group in mid-2025, primarily from the 16th HUXIAO Awards and 2025 EMA Awards, covering various marketing fields and demonstrating its leading position and innovation - Awarded the Silver Prize in the Exhibition and Event category at the 16th HUXIAO Awards for "2024 BMW Passion Carnival"[25] - Awarded the Silver Prize in the PR and Communications category at the 16th HUXIAO Awards for "LACOSTE 'Great Achievements' Brand Ceremony"[25] - Awarded the Gold Prize for Best Live Event at the 2025 EMA Awards for "2024 BMW Passion Carnival"[27] Management Discussion and Analysis This section provides an overview of the Group's financial performance, business segment review, and liquidity, along with future outlook and strategic initiatives Overview and Outlook Despite global economic uncertainties, EDGII Group achieved solid performance in H1 2025 with net profit growth of 16.2% and a 1.0 percentage point increase in gross profit margin, declaring an interim dividend of 2.3 HK cents per share, while focusing on integrating experiential and digital marketing and expanding into new segments 2025 Interim Dividend | Indicator | 2025 Interim | 2024 Interim | | :--- | :--- | :--- | | Dividend per Ordinary Share | 2.3 HK cents | 2.0 HK cents | | Total Amount | Approx. 17,129,000 HKD | - | 2025 Interim Key Financial Performance | Indicator | 2025 Interim (RMB millions) | 2024 Interim (RMB millions) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 311.7 | 316.4 | -1.5% | | Net Profit | 35.1 | 30.2 | +16.2% | | Gross Profit Margin | 33.7% | 32.7% | +1.0 percentage points | - The Group is the largest experiential marketing service provider for mid-to-high-end fashion brands in Greater China, with a market share of 13.8% in 2024[31] - Looking ahead to H2, the Group will focus on core businesses, integrating experiential and digital marketing, and selectively expanding services in sports fashion, beauty, and high-end Chinese brands[35][36] Business Segment Review This section reviews the Group's business segments: experiential marketing revenue slightly decreased but remains core, digital marketing and promotion revenue grew 33.3% as a new driver, and IP expansion revenue significantly declined due to business seasonality Revenue Breakdown by Region (RMB thousands) | Region | 2025 (RMB thousands) | Share | 2024 (RMB thousands) | Share | | :--- | :--- | :--- | :--- | :--- | | Mainland China | 302,187 | 97.0% | 288,530 | 91.2% | | Hong Kong and Singapore | 9,471 | 3.0% | 27,831 | 8.8% | | Total | 311,658 | 100.0% | 316,361 | 100.0% | Revenue by Service Line (RMB millions) | Service Line | 2025 (RMB millions) | 2024 (RMB millions) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Experiential Marketing | 246.3 | 257.5 | -4.3% | | Digital Marketing and Promotion | 65.2 | 48.9 | +33.3% | | IP Expansion | 0.2 | 9.9 | -98.0% | | Total | 311.7 | 316.3 | -1.5% | - Experiential marketing revenue decreased by 4.3%, but still accounts for 79.0% of total revenue, as the Group integrates it with digital promotion, social media, and content marketing for comprehensive services[42] - Digital marketing and promotion revenue grew 33.3% to RMB 65.2 million, representing 20.9% of total revenue, benefiting from synergies with experiential marketing and appeal to younger consumers[46][45] - IP expansion revenue significantly decreased to RMB 0.2 million, primarily due to business seasonality and activities concentrated in the second half of the year[47] Financial Performance Analysis This section analyzes the Group's financial performance, with gross profit increasing 1.6% to RMB 105.1 million and gross profit margin rising to 33.7%, while net profit grew 16.2% to RMB 35.1 million (net profit margin 11.3%), driven by reduced cost of sales, lower selling and distribution expenses, and significantly decreased general and administrative expenses 2025 Interim Financial Performance Summary (RMB millions) | Indicator | 2025 Interim (RMB millions) | 2024 Interim (RMB millions) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Cost of Sales | 206.6 | 213.0 | -3.0% | | Gross Profit | 105.1 | 103.4 | +1.6% | | Gross Profit Margin | 33.7% | 32.7% | +1.0 percentage points | | Selling and Distribution Expenses | 35.5 | 37.1 | -4.3% | | General and Administrative Expenses | 19.6 | 29.4 | -33.3% | | Net Profit | 35.1 | 30.2 | +16.2% | | Net Profit Margin | 11.3% | 9.5% | +1.8 percentage points | - The decrease in general and administrative expenses was primarily due to a significant reduction in share-based payment expenses from RMB 9.6 million in H1 2024 to RMB 0.3 million in H1 2025[53] Liquidity and Financial Resources This section outlines the Group's liquidity, showing a decrease in cash and cash equivalents but strong liquidity with no interest-bearing borrowings and zero gearing ratio, while strategic investment of global offering proceeds is deferred to 2026, and both employee numbers and trade receivables/payables have decreased Cash and Cash Equivalents (RMB millions) | Indicator | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | Change | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 288.7 | 379.2 | -23.8% | - The unutilized net proceeds from the global offering for strategic investments in the pan-cultural sector amounted to RMB 161.5 million, with the full utilization timetable deferred to 2026[60][61] - As of June 30, 2025, the Group had no interest-bearing borrowings and a zero gearing ratio, indicating a strong liquidity position[62][63] Employees and Remuneration | Indicator | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Employees | 224 people | 233 people | -9 people | | Employee Benefit Expenses (RMB millions) | 44.4 | 54.1 | -17.9% | Trade Receivables and Payables (RMB millions) | Indicator | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | Change | | :--- | :--- | :--- | :--- | | Trade Receivables | 211.3 | 264.9 | -20.2% | | Trade Payables | 206.6 | 294.7 | -29.9% | Other Information and Corporate Governance This section covers the Group's corporate governance practices, shareholding disclosures, and details on share schemes and audit committee review Corporate Governance and Securities Transactions This section outlines the company's compliance with the Corporate Governance Code, noting the combined role of Co-Chairman and CEO will be regularly reviewed by the Board, and confirms strict adherence to the Model Code for Securities Transactions by Directors - The company has complied with the applicable provisions of the Corporate Governance Code, though the roles of Co-Chairman and CEO are combined by Mr. Liu Kam Yiu, which the Board will regularly review[72] - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and directors and relevant employees have strictly complied[74] Equity Disclosure This section discloses the interests and short positions of directors, chief executives, and substantial shareholders in the company's shares, detailing their holdings and approximate percentages Directors' Interests in Shares (as of June 30, 2025) | Director Name | Total Number of Shares | Approximate Shareholding Percentage | | :--- | :--- | :--- | | Mr. Ng | 128,073,736 | 17.20% | | Mr. Liu | 172,326,810 | 23.14% | | Ms. Lau | 62,155,238 | 8.35% | | Mr. Chan | 60,810,915 | 8.17% | - Substantial shareholders include Art Investment, Aurora Power, EDGII Zhongxin, Art United, Ruisi Capital Limited, Asian Equity Special Opportunities Portfolio Master Fund, Pandanus Associates Inc., Pandanus Partners L.P., and FIL Limited[77] Share Schemes and Audit Committee This section confirms no listed securities were repurchased, sold, or redeemed in H1 2025, details changes to the 2023 Share Option Scheme and the termination of the 2020 Share Award Scheme (replaced by 2025 scheme), and notes the Audit Committee's review of the Group's unaudited interim results - Neither the company nor its subsidiaries repurchased, sold, or redeemed any listed securities during H1 2025[80] - No share options have been granted, exercised, outstanding, cancelled, or lapsed under the 2023 Share Option Scheme since its adoption up to June 30, 2025[81] - A total of 1,472,156 award shares under the 2020 Share Award Scheme have vested, and the scheme was terminated on May 15, 2025, replaced by the 2025 Share Award Scheme[82][85] - The Audit Committee has reviewed the Group's unaudited interim results for H1 2025 and confirmed compliance with applicable accounting principles[87] Interim Condensed Consolidated Statement of Profit or Loss This section presents the Group's interim condensed consolidated statement of profit or loss, detailing revenue, costs, and profit for the period Profit or Loss Overview For the six months ended June 30, 2025, the Group's revenue slightly decreased, but gross profit and profit before tax increased due to effective cost control and operational efficiency, with net profit growing 16.5% year-on-year to RMB 35.1 million and basic earnings per share at RMB 4.31 cents Interim Condensed Consolidated Statement of Profit or Loss (RMB thousands) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 311,658 | 316,361 | -1.5% | | Cost of Sales | (206,593) | (212,970) | -3.0% | | Gross Profit | 105,065 | 103,391 | +1.6% | | Other Income and Gains | 5,360 | 5,327 | +0.6% | | Selling and Distribution Expenses | (35,503) | (37,089) | -4.3% | | General and Administrative Expenses | (19,625) | (29,351) | -33.1% | | Profit Before Tax | 54,434 | 42,087 | +29.3% | | Income Tax Expense | (19,298) | (11,934) | +61.7% | | Profit for the Period | 35,136 | 30,153 | +16.5% | | Attributable to Owners of the Parent | 32,028 | 26,858 | +19.2% | | Attributable to Non-controlling Interests | 3,108 | 3,295 | -5.7% | | Basic Earnings Per Share (RMB cents) | 4.31 | 3.70 | +16.5% | | Diluted Earnings Per Share (RMB cents) | 4.31 | 3.61 | +19.4% | Interim Condensed Consolidated Statement of Comprehensive Income This section presents the Group's interim condensed consolidated statement of comprehensive income, detailing profit for the period and other comprehensive income items Comprehensive Income Overview For the six months ended June 30, 2025, the Group's total comprehensive income for the period significantly increased by 44.5% to RMB 32.8 million from RMB 22.7 million in the prior period, driven by profit growth and reduced foreign currency translation losses from overseas operations Interim Condensed Consolidated Statement of Comprehensive Income (RMB thousands) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Profit for the Period | 35,136 | 30,153 | +16.5% | | Exchange Differences on Translation of Overseas Operations | (2,348) | (7,457) | +68.5% (Loss narrowed) | | Total Comprehensive Income for the Period | 32,788 | 22,696 | +44.5% | | Attributable to Owners of the Parent | 29,680 | 19,401 | +52.0% | | Attributable to Non-controlling Interests | 3,108 | 3,295 | -5.7% | Interim Condensed Consolidated Statement of Financial Position This section presents the Group's interim condensed consolidated statement of financial position, detailing assets, liabilities, and equity as of the reporting date Assets and Liabilities Overview As of June 30, 2025, the Group's total assets less current liabilities were RMB 351.5 million, and net assets were RMB 341.2 million, a slight decrease from year-end 2024, primarily due to reduced trade receivables, cash and cash equivalents, and a significant decrease in current liabilities from lower trade and other payables Interim Condensed Consolidated Statement of Financial Position (RMB thousands) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 74,385 | 72,979 | +1.9% | | Total Current Assets | 528,348 | 672,930 | -21.5% | | Trade Receivables | 211,273 | 264,935 | -20.2% | | Cash and Cash Equivalents | 288,691 | 379,189 | -23.8% | | Total Current Liabilities | 251,260 | 375,560 | -33.1% | | Trade Payables | 206,579 | 294,701 | -29.9% | | Other Payables and Accruals | 34,087 | 63,730 | -46.5% | | Net Assets | 341,240 | 361,144 | -5.5% | | Total Equity | 341,240 | 361,144 | -5.5% | Interim Condensed Consolidated Statement of Changes in Equity This section presents the Group's interim condensed consolidated statement of changes in equity, detailing movements in various equity components during the period Equity Changes Overview For the six months ended June 30, 2025, the Group's total equity decreased from RMB 361.1 million on January 1, 2025, to RMB 341.2 million, primarily due to profit for the period of RMB 35.1 million offset by dividends paid (RMB 47.5 million to owners of the parent, RMB 6.4 million to non-controlling interests) and foreign currency translation losses from overseas operations Interim Condensed Consolidated Statement of Changes in Equity (RMB thousands) | Indicator | June 30, 2025 (RMB thousands) | January 1, 2025 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Total Equity | 341,240 | 361,144 | -5.5% | | Profit for the Period (Attributable to Owners of the Parent) | 32,028 | - | +32,028 | | Exchange Differences on Translation of Overseas Operations | (2,348) | - | -2,348 | | Dividends Paid to Shareholders of the Company | (47,469) | - | -47,469 | | Dividends Paid to Non-controlling Shareholders of Subsidiaries | (6,426) | - | -6,426 | Interim Condensed Consolidated Statement of Cash Flows This section presents the Group's interim condensed consolidated statement of cash flows, detailing cash movements from operating, investing, and financing activities Cash Flow Overview For the six months ended June 30, 2025, the Group's cash and cash equivalents decreased by RMB 88.1 million, with negative cash flow from operating activities of RMB 36.0 million and net outflow from financing activities of RMB 53.9 million due to dividends and lease payments, while investing activities generated a net inflow of RMB 1.7 million Interim Condensed Consolidated Statement of Cash Flows (RMB thousands) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Net Cash Flows From / (Used In) Operating Activities | (35,981) | 60,423 | -96,404 | | Net Cash Flows From / (Used In) Investing Activities | 1,689 | (89) | +1,778 | | Net Cash Flows Used In Financing Activities | (53,855) | (71,301) | +17,446 (Outflow decreased) | | Net Decrease in Cash and Cash Equivalents | (88,147) | (10,967) | -77,180 | | Cash and Cash Equivalents at End of Period | 288,691 | 288,625 | +66 | - Net cash flow from operating activities shifted from a net inflow in the prior period to a net outflow, primarily impacted by decreases in trade receivables and payables[95] - Cash outflow from financing activities was mainly for dividends paid to company shareholders of RMB 46.8 million and to non-controlling shareholders of subsidiaries of RMB 6.4 million[96] Notes to the Interim Condensed Consolidated Financial Information This section provides detailed notes to the interim condensed consolidated financial information, covering company details, accounting policies, segment information, and other financial disclosures Company and Group Information This note provides basic information about EDGII Group Holdings Limited, including its place of incorporation, principal place of business, listing date, and the main business activities of its subsidiaries: experiential marketing, digital marketing and promotion, and IP expansion services - The company's shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited on January 16, 2020[97] - The company's subsidiaries are primarily engaged in providing experiential marketing services, digital marketing and promotion services, and IP expansion (managing and operating sports events)[101] Basis of Preparation and Changes in Accounting Policies This note explains that the interim condensed consolidated financial information is prepared in accordance with HKAS 34 and consistent with accounting policies adopted for the annual consolidated financial statements as of December 31, 2024, with no significant impact from the first-time adoption of amended HKAS 21 (Lack of Exchangeability) - The interim condensed consolidated financial information has been prepared in accordance with HKAS 34[98] - The amendments to HKAS 21 (Lack of Exchangeability) had no impact on the interim condensed consolidated financial information[100] Operating Segment Information This note segments the Group's business into three reporting operating segments by service type: experiential marketing, digital marketing and promotion, and IP expansion, with management assessing resource allocation based on segment performance, and Mainland China being the primary source of revenue and non-current assets - The Group's operating segments include experiential marketing services, digital marketing and promotion services, and IP expansion segments[103] Segment Revenue for the Six Months Ended June 30, 2025 (RMB thousands) | Segment | Revenue (RMB thousands) | | :--- | :--- | | Experiential Marketing Services | 246,234 | | Digital Marketing and Promotion Services | 65,193 | | IP Expansion | 231 | | Total | 311,658 | - Mainland China contributed 97.0% of external customer revenue (RMB 302,187 thousand) in H1 2025[107] Revenue, Other Income and Gains This note details the Group's revenue sources, primarily from experiential marketing and digital marketing and promotion services, with significant growth in digital marketing, while other income and gains remained stable, mainly comprising bank interest income and government grants Revenue Analysis (RMB thousands) | Service Line | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Experiential Marketing Services | 246,234 | 257,517 | | Digital Marketing and Promotion Services | 65,193 | 48,936 | | IP Expansion | 231 | 9,908 | | Total | 311,658 | 316,361 | Other Income and Gains Analysis (RMB thousands) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank Interest Income | 1,696 | 1,010 | | Government Grants and Subsidies | 3,184 | 4,107 | | Others | 480 | 210 | | Total | 5,360 | 5,327 | Profit Before Tax This note lists various costs and expenses deducted from profit before tax, including cost of services, depreciation of property, plant and equipment, depreciation of right-of-use assets, amortization of intangible assets, net impairment losses on trade receivables, and net foreign exchange differences Deductions from Profit Before Tax (RMB thousands) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of Services Provided | 206,593 | 212,970 | | Depreciation of Property, Plant and Equipment | 1,033 | 1,149 | | Depreciation of Right-of-Use Assets | 1,310 | 1,362 | | Amortization of Intangible Assets | 125 | 135 | | Net Impairment Losses on Trade Receivables | 605 | 1,128 | Income Tax This note details the Group's income tax expense, which significantly increased to RMB 19.3 million in H1 2025, with taxable profits in Mainland China subject to a 25% corporate income tax rate, Hong Kong profits tax at 16.5% (partially 8.25%), and Singapore income tax at 17% Income Tax Expense (RMB thousands) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current — China | 19,294 | 11,288 | | Deferred | 4 | 646 | | Total Tax Expense for the Period | 19,298 | 11,934 | - The corporate income tax rate in Mainland China is 25%, Hong Kong profits tax rate is 16.5% (8.25% for the first HKD 2,000,000), and Singapore income tax rate is 17%[117] Earnings Per Share Attributable to Owners of the Parent This note calculates basic and diluted earnings per share, both at RMB 4.31 cents, an increase from the prior period, based on profit attributable to owners of the parent and the adjusted weighted average number of ordinary shares outstanding Earnings Per Share (RMB cents) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Basic | 4.31 | 3.70 | | Diluted | 4.31 | 3.61 | Number of Shares Used for Earnings Per Share Calculation | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Weighted Average Number of Ordinary Shares in Issue for Basic EPS Calculation | 742,979,050 | 725,104,265 | | Dilutive Effect — Share Awards | 569,342 | 18,718,272 | | Number of Shares for Diluted EPS Calculation | 743,548,392 | 743,822,537 | Property, Plant and Equipment This note discloses that the Group's acquisition cost for property, plant and equipment in H1 2025 was approximately RMB 534 thousand, a decrease from the prior period, with no significant asset disposals during the period Acquisition Cost of Property, Plant and Equipment (RMB thousands) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Acquisition Cost | 534 | 998 | Trade Receivables This note provides an aging analysis of trade receivables, totaling RMB 211.3 million as of June 30, 2025, a decrease from year-end 2024, with unbilled portions still representing a significant proportion Aging Analysis of Trade Receivables (RMB thousands) | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 month (billed) | 63,329 | 98,802 | | 1 to 3 months (billed) | 3,938 | 434 | | Over 3 months (billed) | 1,259 | 794 | | Unbilled | 142,747 | 164,905 | | Total | 211,273 | 264,935 | Trade Payables This note provides an aging analysis of trade payables, totaling RMB 206.6 million as of June 30, 2025, a significant decrease from year-end 2024, with trade payables typically interest-free and settled within 60 to 90 days Aging Analysis of Trade Payables (RMB thousands) | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 month | 150,650 | 234,741 | | 1 to 3 months | 1,868 | 37,821 | | Over 3 months | 54,061 | 22,139 | | Total | 206,579 | 294,701 | - Trade payables are interest-free and generally settled within 60 to 90 days[124] Issued Share Capital This note indicates the Group's issued share capital remained unchanged in H1 2025 at 744,742,000 ordinary shares of HKD 0.001 each, with share premium decreasing due to the resale of shares under the share award scheme Changes in Issued Share Capital and Share Premium (RMB thousands) | Indicator | Number of Shares | Issued Share Capital (RMB thousands) | Share Premium (RMB thousands) | | :--- | :--- | :--- | :--- | | As at January 1, 2025 | 744,742,000 | 659 | 111,971 | | Resale of shares under share award scheme | — | — | (3,001) | | As at June 30, 2025 | 744,742,000 | 659 | 108,970 | Commitments This note discloses the Group's contractual commitments as of June 30, 2025, primarily comprising capital contributions payable of RMB 5.1 million, consistent with year-end 2024 Contractual Commitments (RMB thousands) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Contracted but not provided for: Capital contributions payable | 5,100 | 5,100 | Dividends This note states that the company declared an interim dividend of 2.3 HK cents per ordinary share for H1 2025, totaling RMB 15.9 million, an increase from the prior period Dividends Declared (RMB thousands) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interim dividend — 2.3 HK cents (2024: 2.0 HK cents) per ordinary share | 15,879 | 13,868 | Related Party Transactions This note discloses the Group's related party transactions, including short-term lease expenses and key management personnel remuneration, with the latter showing an increase in total amount Related Party Transactions (RMB thousands) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Short-term lease expenses (related companies) | 1,125 | 1,125 | Key Management Personnel Remuneration (RMB thousands) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Short-term employee benefits | 6,407 | 5,072 | | Post-employment benefits | 628 | 413 | | Total | 7,035 | 5,485 | Fair Value and Fair Value Hierarchy of Financial Instruments This note details the fair value measurement of the Group's financial instruments, including equity investments designated at fair value through other comprehensive income and at fair value through profit or loss, totaling RMB 35.8 million, classified across fair value hierarchy levels (Level 1, 2, 3), with unlisted equity investments using Level 3 valuation techniques Fair Value of Financial Assets (RMB thousands) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Equity investments designated at fair value through other comprehensive income | 22,433 | 22,433 | | Equity investments at fair value through profit or loss | 13,375 | 13,375 | | Total | 35,808 | 35,808 | - The fair value of unlisted equity investments is estimated using the equity value allocation method, considering peer average market-to-sales multiples and a discount for lack of marketability[132] Fair Value Hierarchy of Assets (RMB thousands) | Level | June 30, 2025 (RMB thousands) | | :--- | :--- | | Level 1 (Quoted prices in active markets) | 4,040 | | Level 2 (Significant observable inputs) | 13,375 | | Level 3 (Significant unobservable inputs) | 18,393 | | Total | 35,808 | Definitions This section provides definitions for key terms and abbreviations used throughout the interim report to ensure clear understanding Glossary of Terms This section provides definitions for key terms and abbreviations used in the interim report, covering company entities, time periods, business types, regulations, and related parties, to ensure clear understanding of the content - “H1 2025” refers to the six months ended June 30, 2025[135] - “The Group” refers to the Company and its subsidiaries[136] - “IP” refers to intellectual property, and “IP Development,” also known as IP Expansion, involves the business of introducing, developing, and expanding IP for clients[136]