玄武云(02392) - 2025 - 中期财报

Company Information Executive Directors This section lists the company's executive directors, including Mr. Chen Yonghui (Chairman and CEO), Mr. Huang Fangjie, Mr. Li Hairong, and Mr. Guo Haiqiu - Executive directors include Mr. Chen Yonghui (Chairman and Chief Executive Officer), Mr. Huang Fangjie, Mr. Li Hairong, and Mr. Guo Haiqiu[3] Independent Non-Executive Directors This section lists the company's independent non-executive directors, including Mr. Du Jianqing, Ms. Wu Ruifeng, and Professor Wu Jintao - Independent non-executive directors include Mr. Du Jianqing, Ms. Wu Ruifeng, and Professor Wu Jintao[3] Audit Committee This section details the composition of the company's Audit Committee, chaired by Ms. Wu Ruifeng, with Mr. Du Jianqing and Professor Wu Jintao as members - The Audit Committee is chaired by Ms. Wu Ruifeng, with members including Mr. Du Jianqing and Professor Wu Jintao[3] Remuneration Committee This section details the composition of the company's Remuneration Committee, chaired by Professor Wu Jintao, with Mr. Guo Haiqiu and Ms. Wu Ruifeng as members - The Remuneration Committee is chaired by Professor Wu Jintao, with members including Mr. Guo Haiqiu and Ms. Wu Ruifeng[3] Nomination Committee This section details the composition of the company's Nomination Committee, chaired by Mr. Chen Yonghui, with Mr. Du Jianqing and Professor Wu Jintao as members - The Nomination Committee is chaired by Mr. Chen Yonghui, with members including Mr. Du Jianqing and Professor Wu Jintao[3] Legal Adviser as to Hong Kong Law The company's legal adviser as to Hong Kong law is Zhong Lun Law Firm (Limited Liability Partnership) - The company's Hong Kong legal adviser is Zhong Lun Law Firm (Limited Liability Partnership)[3] Joint Company Secretaries The company's joint company secretaries are Ms. Ge Ping and Ms. Lin Zhiqin - The joint company secretaries are Ms. Ge Ping and Ms. Lin Zhiqin[3] Authorised Representatives The company's authorised representatives are Mr. Chen Yonghui and Ms. Lin Zhiqin - The authorised representatives are Mr. Chen Yonghui and Ms. Lin Zhiqin[3] Stock Code The company's stock code is 2392 - The company's stock code is 2392[3] Company Website The company's website is https://ir.wxchina.com/ - The company's website is https://ir.wxchina.com/[3](index=3&type=chunk) Registered Office The company's registered office is located in the Cayman Islands - The registered office is located at Harneys Fiduciary (Cayman) Limited, Grand Cayman KY1-1002, Cayman Islands[3] Headquarters and Principal Place of Business in China The company's headquarters and principal place of business in China are located in Haizhu District, Guangzhou, China - The headquarters and principal place of business in China are located at Room 904, 9/F, No. 38 Haizhou Road, Haizhu District, Guangzhou, Guangdong Province, China[4] Principal Place of Business in Hong Kong The company's principal place of business in Hong Kong is located in Jardine House, Central, Hong Kong - The principal place of business in Hong Kong is located at 4/F, Jardine House, 1 Connaught Place, Central, Hong Kong[4] Principal Share Registrar and Transfer Office The company's principal share registrar and transfer office is located in the Cayman Islands - The principal share registrar and transfer office is located at Harneys Fiduciary (Cayman) Limited, Grand Cayman KY1-1002, Cayman Islands[4] Hong Kong Share Registrar The company's Hong Kong share registrar is Computershare Hong Kong Investor Services Limited - The Hong Kong share registrar is Computershare Hong Kong Investor Services Limited[4] Auditor The company's auditor is PricewaterhouseCoopers - The auditor is PricewaterhouseCoopers[4] Principal Bankers The company's principal banker is China Merchants Bank - The principal banker is China Merchants Bank[4] Financial Highlights Summary of Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the company's revenue decreased by 36.5% year-on-year to RMB410,907 thousand, gross profit decreased by 26.0% to RMB74,950 thousand, operating loss expanded to RMB26,968 thousand, loss attributable to owners of the company was RMB25,874 thousand, and loss per share was RMB0.048 Summary of Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Revenue | 410,907 | 647,469 | | Gross Profit | 74,950 | 101,249 | | Operating Loss | (26,968) | (4,106) | | Loss Before Tax | (29,084) | (5,912) | | Loss Attributable to Owners of the Company | (25,874) | (6,444) | | Loss Per Share (RMB per share) | (0.048) | (0.012) | Summary of Condensed Consolidated Statement of Financial Position As of June 30, 2025, the company's total assets were RMB624,742 thousand, a slight decrease from the end of 2024, with equity attributable to owners of the company at RMB306,665 thousand and total liabilities at RMB325,273 thousand Summary of Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Non-current Assets | 32,569 | 39,765 | | Current Assets | 592,173 | 594,043 | | Total Assets | 624,742 | 633,808 | | Equity Attributable to Owners of the Company | 306,665 | 331,621 | | Non-controlling Interests | (7,196) | (3,552) | | Total Equity | 299,469 | 328,069 | | Non-current Liabilities | 2,137 | 8,026 | | Current Liabilities | 323,136 | 297,713 | | Total Liabilities | 325,273 | 305,739 | | Total Equity and Liabilities | 624,742 | 633,808 | Business Review and Outlook Business Review During the reporting period, the company's revenue decreased by 36.5% year-on-year to RMB410.9 million due to domestic telecom industry regulatory policy adjustments, while focusing on AI+SaaS business to improve gross profit margin and achieve positive operating cash flow, continuing to strengthen technological innovation and provide digital intelligence services to customers in finance, FMCG, government & enterprise, and TMT sectors - In the first half of the year, the global digital economy maintained strong growth, with AI technology transitioning from breakthroughs to large-scale applications, empowering various industries[6] - Domestic revenue from PaaS and some SaaS services declined due to adjustments in domestic telecom industry regulatory policies[6] - Overseas cloud communication business achieved rapid customer and revenue growth, covering Southeast Asia, Latin America, East Asia, and the Middle East regions[6] First Half Revenue Scale | Indicator | H1 2025 (RMB million) | YoY Change | | :--- | :--- | :--- | | Revenue Scale | 410.9 | -36.5% | - Continued focus on AI+SaaS business led to a steady increase in gross profit margin, driving up the overall gross profit margin[7] - The Board adopted prudent and strict financial controls and strengthened cash flow management, resulting in positive operating cash flow in the first half of 2025[7] - During the reporting period, 410 authorized patents and computer software copyrights were obtained, with 11 new additions, maintaining product competitive advantages[7] - Provided digital intelligence transformation and upgrade services to a cumulative total of 2,351 customers across four major industries: finance, FMCG, government & enterprise, and TMT[7] SaaS Business SaaS business, comprising marketing cloud, sales cloud, and customer service cloud, generated RMB245.0 million in revenue, a 32.9% year-on-year decrease due to telecom policy impacts and proactive reduction of loss-making projects, while its gross profit margin improved to 26.5% SaaS Business Revenue and Gross Profit Margin | Indicator | H1 2025 (RMB million) | YoY Change | Gross Profit Margin | | :--- | :--- | :--- | :--- | | SaaS Revenue | 245.0 | -32.9% | 26.5% | | Gross Profit Margin YoY Increase | - | - | 3.4 percentage points | - Total revenue from core customers accounted for 95.0% of total customer revenue, with an average contribution of RMB1.3 million per core customer[8] - The number of continuously focused SaaS customers reached 1,558, with an average contribution of RMB1.1 million per SaaS core customer[8] Marketing Cloud Marketing Cloud revenue decreased by 38.1% to RMB189.7 million due to telecom regulatory policy adjustments, while its ICC platform completed latest protocol adaptations for mainstream telecom operators, upgraded 5G messaging capabilities, increased trusted computing adaptations to 14 items, and achieved over 90% project win rate Marketing Cloud Revenue | Indicator | H1 2025 (RMB million) | YoY Change | | :--- | :--- | :--- | | Marketing Cloud Revenue | 189.7 | -38.1% | - ICC (Integrated Communication Center) completed the latest protocol adaptation for direct connection mode with mainstream domestic telecom operators, and 5G messaging capabilities were fully upgraded[9] - ICC improved its trusted computing ecosystem, increasing trusted computing adaptations to 14 items, completed HarmonyOS adaptation for components like Jiyan and iPush, and achieved a project win rate of over 90%[9] Sales Cloud Sales Cloud revenue decreased by 33.6% to RMB28.6 million due to proactive reduction of loss-making projects, but its gross profit margin improved, with core product [Smart 100] enhancing functions and adding configuration components, and Smart U-Customer upgrading based on Huawei Ascend AI ecosystem and DeepSeek large model to achieve 'second-level response' and multi-language versions Sales Cloud Revenue and ARR Contribution | Indicator | H1 2025 (RMB million) | YoY Change | ARR Contribution | | :--- | :--- | :--- | :--- | | Sales Cloud Revenue | 28.6 | -33.6% | 62.9% | | ARR Contribution YoY Increase | - | - | 12.4 percentage points | - Sales Cloud's core product [Smart 100] added plug-and-play configuration components such as 'Super Forms' and 'Surveys'[12] - Smart U-Customer was fully upgraded based on Huawei Ascend AI ecosystem and DeepSeek large model, achieving 'second-level response' for customer profile analysis and business opportunity prediction, and released multi-language versions[12] - Based on self-developed Xuantao large model and open-source large models like DeepSeek, AI products such as SKU Super Model and 'AI Reshoot Detective' were launched, increasing the number of AI standard products to 12[13] - Multiple AI agents such as 'Development Assistant', 'Market Survey Assistant', and 'Voice Operation Assistant' were built based on the aPaaS platform, and Smart U-Customer's business assistant 'Smart Xiao Xuan' has been successfully implemented[13] - AIoT Smart Refrigerator continued to expand offline terminal store coverage, iterated sales promotion application scenarios, and optimized customer advertising costs[14] Customer Service Cloud Customer Service Cloud revenue significantly increased by 71.7% to RMB26.6 million, with its post-loan management SaaS business gaining market share and seat scale growing by 19.9%, while contact points expanded from outbound calls to all-touchpoints, integrating DeepSeek and other open-source large models to develop a speech configuration robot that reduces workload by 90% Customer Service Cloud Revenue and Seat Scale Growth | Indicator | H1 2025 (RMB million) | YoY Change | | :--- | :--- | :--- | | Customer Service Cloud Revenue | 26.6 | +71.7% | | Seat Scale YoY Increase | - | +19.9% | - Customer Service Cloud's contact points expanded from outbound calls to all-touchpoints, achieving breakthroughs in new contact methods such as SMS and flash messages for post-loan management[15] - Integrated DeepSeek and other open-source large models to develop a speech configuration robot, which has been implemented for customers and can help reduce 90% of speech configuration workload[15] - Reached a strategic cooperation with Tencent Cloud to collaborate on AI products and services, cloud communication, and smart retail[15] - Partnered with Huawei Ascend to jointly upgrade and iterate product versions, with data-related products already launched on Guangzhou and Shenzhen Data Exchanges[15] Business Outlook For the second half of 2025, the company will continue to deepen its 'product standardization, refined operations, and business globalization' strategy, prioritizing profit to achieve high-quality development, focusing on enriching core product standardized components, strengthening key AI product operations, innovating AI+finance application scenarios, and emphasizing domestic and international ecosystem building to enhance market responsiveness - Deeply implement the 'AI+' initiative, with large models and AI agents fully integrating into the real economy[16] - In the second half of the year, the company will deepen its development goals of 'product standardization, refined operations, and business globalization', prioritizing profit to achieve high-quality development[16] Enrich Core Product Standardized Components to Enhance Profit Margins The company will focus on enhancing the standardization of core products across all business lines by extracting common requirements to create more standardized product components, coupled with standardized delivery processes, to optimize delivery cycles, reduce project costs, and increase profit margins, while also enriching the AI standard product matrix based on customer business scenario needs to achieve rapid product scaling - Focus on enhancing the standardization of core products across all business lines, creating more standardized product components to optimize delivery cycles, reduce project costs, and increase profit margins[16] - Continue to enrich the AI standard product matrix based on actual customer business scenario needs, aiming for rapid product scaling[16] Strengthen Key AI Product Operations and Innovate AI+Finance Application Scenarios The company will strengthen market expansion and operations for key AI products like SKU Super Model and 'AI Reshoot Detective' to establish them as star AI products, while solidifying AI+consumer technology applications and developing AI product applications for the financial industry, including intelligent agent development, smart customer service optimization, and digital humans, to deepen customer cooperation - Strengthen market expansion and operations for key AI products such as SKU Super Model and 'AI Reshoot Detective', aiming to build them into the company's star AI products[17] - Leverage customer resources in the financial industry to develop AI product applications for the financial sector, including intelligent agent development, smart customer service optimization and upgrades, and digital humans[17] Emphasize Domestic and International Ecosystem Building to Enhance Market Responsiveness The company will continue to build its ecosystem, maintaining close ties with upstream and downstream partners, strengthening interaction and cooperation with telecom operators, cloud vendors, and peers in the second half of the year to promote stable group business development, and plans to achieve localized operations in some overseas regions to deepen cooperation with resource providers and further expand customer base - Continuously build the ecosystem, strengthening interaction and cooperation with telecom operators, cloud vendors, and peers to promote stable group business development[18] - Plan to achieve localized operations in some overseas regions, deepening cooperation with resource providers and further expanding customer sources[18] Management Discussion and Analysis Financial Overview This section analyzes the company's financial performance during the reporting period, with total revenue decreasing by 36.5% to RMB410.9 million due to domestic telecom industry regulatory policy adjustments, leading to a decline in both PaaS and SaaS revenues, but an increase in SaaS business's proportion and overall gross profit margin to 18.2%, while operating expenses decreased, and loss attributable to owners of the company expanded to RMB25.9 million - The Group's total revenue decreased by 36.5% to RMB410.9 million, primarily due to adjustments in domestic telecom industry regulatory policies[19] - SaaS business accounted for 59.6% of total revenue (H1 2024: 56.4%), while PaaS accounted for 40.4% (H1 2024: 43.6%)[19] Segment Revenue Details (For the six months ended June 30) | Segment | 2025 (RMB'000) | 2025 (%) | 2024 (RMB'000) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | PaaS | 165,951 | 40.4 | 282,411 | 43.6 | | SaaS | 244,956 | 59.6 | 365,058 | 56.4 | | Total | 410,907 | 100.0 | 647,469 | 100.0 | Gross Profit and Gross Profit Margin (For the six months ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | 2025 Gross Profit Margin | 2024 Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | | Overall Gross Profit | 75,000 | 101,200 | 18.2% | 15.6% | | PaaS Gross Profit Margin | - | - | 6.0% | 6.0% | | SaaS Gross Profit Margin | - | - | 26.5% | 23.1% | - Loss attributable to owners of the company for the period was RMB25.9 million, an increase from RMB6.4 million in the same period of 2024, primarily due to increased telecom industry regulation leading to reduced sales of PaaS and some SaaS services[33] Revenue The Group's revenue primarily derives from PaaS and SaaS operating segments, with total revenue decreasing by 36.5% to RMB410.9 million for the six months ended June 30, 2025, mainly due to domestic telecom industry regulatory policy adjustments, and SaaS revenue proportion increasing to 59.6% - The Group's revenue is derived from two operating segments, PaaS and SaaS, with SaaS being the larger segment, accounting for 59.6%[19] Segment Revenue (For the six months ended June 30) | Segment | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | PaaS | 165,951 | 282,411 | | SaaS | 244,956 | 365,058 | | Total | 410,907 | 647,469 | - PaaS revenue decreased by 41.2% to RMB166.0 million, primarily due to adjustments in domestic telecom industry regulatory policies[20] - SaaS revenue decreased by 32.9% to RMB245.0 million, mainly due to the company's proactive reduction of loss-making projects[22] SaaS Revenue Breakdown (For the six months ended June 30) | Solution | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Marketing Cloud | 189,743 | 306,495 | | Sales Cloud | 28,590 | 43,061 | | Customer Service Cloud | 26,623 | 15,502 | | Total | 244,956 | 365,058 | Cost of Sales For the six months ended June 30, 2025, the Group's cost of sales decreased by 38.5% to RMB336.0 million, consistent with the reduction in PaaS and SaaS businesses, primarily due to lower telecom resources, labor, and outsourced implementation costs - The Group's cost of sales decreased by 38.5% to RMB336.0 million, consistent with the reduction in PaaS and SaaS businesses[23] - PaaS cost of sales decreased by 41.2% to RMB156.0 million, primarily due to lower telecom resource costs[23] - SaaS cost of sales decreased by 35.9% to RMB180.0 million, primarily due to reduced telecom resource costs, labor costs, and outsourced implementation costs[23] Gross Profit and Gross Profit Margin For the six months ended June 30, 2025, the Group's overall gross profit decreased by 26.0% to RMB75.0 million, but the overall gross profit margin increased from 15.6% to 18.2%, with PaaS gross profit margin remaining at 6.0% and SaaS gross profit margin increasing to 26.5% due to improved profitability of the core SaaS business Gross Profit and Gross Profit Margin (For the six months ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | 2025 Gross Profit Margin | 2024 Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | | Overall Gross Profit | 75,000 | 101,200 | 18.2% | 15.6% | | PaaS Gross Profit Margin | - | - | 6.0% | 6.0% | | SaaS Gross Profit Margin | - | - | 26.5% | 23.1% | Selling and Distribution Expenses For the six months ended June 30, 2025, selling and distribution expenses decreased by 2.1% to RMB48.8 million, primarily due to reduced business entertainment and travel expenses for sales and marketing personnel Selling and Distribution Expenses (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Selling and Distribution Expenses | 48.8 | 49.9 | -2.1% | Administrative Expenses For the six months ended June 30, 2025, administrative expenses decreased by 2.1% to RMB22.9 million, primarily due to reduced employee benefit expenses Administrative Expenses (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Administrative Expenses | 22.9 | 23.4 | -2.1% | Research and Development Expenses For the six months ended June 30, 2025, research and development expenses decreased by 12.8% to RMB28.6 million, primarily due to effective optimization of R&D processes and organization Research and Development Expenses (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Research and Development Expenses | 28.6 | 32.8 | -12.8% | Net Impairment Loss on Financial Assets For the six months ended June 30, 2025, net impairment loss on financial assets slightly increased by 0.7% to RMB2.7 million Net Impairment Loss on Financial Assets (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Net Impairment Loss on Financial Assets | 2.7 | 2.7 | +0.7% | Other Income For the six months ended June 30, 2025, other income decreased by 42.9% to RMB1.6 million, primarily due to reduced government grants and VAT refunds Other Income (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Other Income | 1.6 | 2.9 | -42.9% | Finance Costs—Net For the six months ended June 30, 2025, net finance costs were RMB2.1 million, an increase from RMB1.8 million in the same period of 2024 Finance Costs—Net (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Finance Costs—Net | 2.1 | 1.8 | Income Tax Expense For the six months ended June 30, 2025, income tax expense was RMB0.2 million, consistent with the same period in 2024 Income Tax Expense (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Income Tax Expense | 0.2 | 0.2 | Loss Attributable to Owners of the Company for the Period During the reporting period, the Group recorded a loss attributable to owners of the company of RMB25.9 million, an increase from RMB6.4 million in the same period of 2024, primarily due to increased telecom industry regulation leading to reduced sales of PaaS and some SaaS services in the first half of 2025 Loss Attributable to Owners of the Company (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Loss Attributable to Owners of the Company | 25.9 | 6.4 | - The expanded loss was primarily due to increased telecom industry regulation in the first half of 2025, leading to a corresponding reduction in PaaS and some SaaS sales[33] Liquidity and Financial Resources This section outlines the company's liquidity and financial resources, noting an increase in cash and cash equivalents, a slight decrease in total debt but a slight increase in the gearing ratio, with no significant contingent liabilities, capital commitments, major investments, or M&A activities during the reporting period, and no assets pledged - The Group adopts prudent financial management policies, actively monitors its liquidity position, and maintains adequate financial resources[34] Cash and Cash Equivalents As of June 30, 2025, the Group's cash and cash equivalents were RMB94.6 million, a 32.4% increase from RMB71.4 million as of December 31, 2024 Cash and Cash Equivalents | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 94.6 | 71.4 | +32.4% | Indebtedness As of June 30, 2025, the Group's total borrowings were RMB143,619 thousand, lease liabilities were RMB7,320 thousand, and total indebtedness was RMB150,939 thousand, a slight decrease from the end of 2024 Debt Composition | Indicator | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Borrowings | 143,619 | 144,040 | | Lease Liabilities | 7,320 | 15,224 | | Total | 150,939 | 159,264 | 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 (December 31, 2024: nil)[37] Capital Commitments As of June 30, 2025, the Group had no capital commitments - As of June 30, 2025, the Group had no capital commitments (December 31, 2024: nil)[38] Gearing Ratio As of June 30, 2025, the Group's gearing ratio was 50.4%, a slight increase from 48.5% at the end of 2024 Gearing Ratio | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing Ratio | 50.4% | 48.5% | Exchange Rate Fluctuation Risk The Group primarily conducts business in RMB and had no significant non-RMB assets or liabilities as of June 30, 2025, nor had it entered into any forward foreign exchange contracts to hedge foreign exchange risk - The Group primarily operates in RMB, has no significant non-RMB assets or liabilities, and has not entered into any forward foreign exchange contracts to hedge foreign exchange risk[40] Material Investments During the reporting period, the Group did not make any material investments - During the reporting period, the Group did not make any material investments[41] Material Acquisitions and Disposals During the reporting period, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures[42] Pledge of Assets As of June 30, 2025, the Group had not pledged any of its assets - As of June 30, 2025, the Group had not pledged any of its assets (December 31, 2024: nil)[43] Plans for Future Material Investments and Capital Assets As of June 30, 2025, the Group had no plans for future material investments and capital assets other than those disclosed in this report, but will continue to seek investment opportunities that align with the overall interests of shareholders - As of June 30, 2025, the Group had no plans for future material investments and capital assets other than those disclosed in this report[44] - The Group will continue to seek investment opportunities that align with the overall interests of shareholders[44] Other Information Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company or its Associated Corporations This section discloses the interests of the company's directors and chief executive in the shares, underlying shares, and debentures of the company or its associated corporations as of June 30, 2025, with Mr. Chen Yonghui, Mr. Huang Fangjie, and Mr. Li Hairong, as parties acting in concert, collectively holding 53.35% of the share interests, and Mr. Guo Haiqiu holding 2.41% Directors' and Chief Executive's Share Interests | Director's Name | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | | Mr. Chen Yonghui | Interest in controlled corporation and parties acting in concert | 298,932,230 | 53.35% | | Mr. Huang Fangjie | Interest in controlled corporation and parties acting in concert | 298,932,230 | 53.35% | | Mr. Li Hairong | Interest in controlled corporation and parties acting in concert | 298,932,230 | 53.35% | | Mr. Guo Haiqiu | Interest in controlled corporation | 13,500,000 | 2.41% | - Mr. Chen Yonghui, Mr. Huang Fangjie, and Mr. Li Hairong are parties acting in concert with each other[47] Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares of the Company This section discloses the interests of substantial shareholders in the company's shares and underlying shares as of June 30, 2025, with Zhenghao Global, Honghan Global, and Shangying Global holding 18.02%, 11.83%, and 10.67% of shares respectively, Baoya Group Holdings Limited and its controlled person Mr. Song Xiaohu holding 9.53%, and Guangzhou Xuandong and its controlled person Ms. Ge Ping holding 5.62% Substantial Shareholders' Share Interests | Shareholder Name/Name | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | | Zhenghao Global | Beneficial owner | 100,968,000 | 18.02% | | Honghan Global | Beneficial owner | 66,311,770 | 11.83% | | Shangying Global | Beneficial owner | 55,542,460 | 10.67% | | Baoya Group Holdings Limited | Beneficial owner | 53,417,170 | 9.53% | | Mr. Song Xiaohu | Interest in controlled corporation | 53,417,170 | 9.53% | | Guangzhou Xuandong | Beneficial owner | 31,500,000 | 5.62% | | Ms. Ge Ping | Interest in controlled corporation | 31,500,000 | 5.62% | Use of Proceeds from Global Offering This section details the use of net proceeds of approximately HKD163.3 million from the company's global offering, with most funds utilized as described in the prospectus, including for enhancing aPaaS and cPaaS platforms, developing DI capabilities, improving AI capabilities, strengthening SaaS solutions, increasing sales and marketing capabilities, and working capital, while HKD16.4 million remains unutilized under strategic investments and acquisitions - Net proceeds from the global offering of approximately HKD163.3 million have been and are intended to be used in the manner set out in the prospectus[51] Status of Use of Net Proceeds from Global Offering (As of June 30, 2025) | Item | Net Proceeds (HKD million) | Utilized as of June 30, 2025 (HKD million) | Unutilized as of June 30, 2025 (HKD million) | | :--- | :--- | :--- | :--- | | Enhance aPaaS and cPaaS platforms | 13.2 | 13.2 | 0.0 | | Develop DI capabilities | 5.6 | 5.6 | 0.0 | | Improve AI capabilities | 5.6 | 5.6 | 0.0 | | Provide omni-channel marketing cloud solutions | 25.4 | 25.4 | 0.0 | | Strengthen sales cloud solutions | 28.5 | 28.5 | 0.0 | | Consolidate customer service cloud solutions | 11.4 | 11.4 | 0.0 | | Enhance brand in finance, government & enterprise, and internet industries | 24.5 | 24.5 | 0.0 | | Promote brand in large consumer, retail, and healthcare industries and establish relevant industry research institutions | 4.9 | 4.9 | 0.0 | | Expand sales and after-sales service teams | 19.6 | 19.6 | 0.0 | | Strategic investments and acquisitions | 16.4 | 0.0 | 16.4 | | Working capital and general corporate purposes | 8.2 | 8.2 | 0.0 | | Total | 163.3 | 146.9 | 16.4 | - The Board will continue to evaluate the plan for utilizing the unutilized net proceeds and may revise it based on market conditions and business development needs[53] Share Award Scheme The company adopted the 2022 Restricted Share Award Scheme on December 1, 2022, to incentivize and retain core employees, with the trustee holding 21,894,000 awarded shares and 48,453,050 shares available for grant as of June 30, 2025, and the scheme having a validity period of approximately seven years and three months, with vesting, lapse, and cancellation changes for awarded shares of Mr. Li Hairong and Group employees during the reporting period - The 2022 Restricted Share Award Scheme aims to provide selected participants with opportunities to acquire ownership interests in the company, encouraging and retaining them to serve the Group[54] - As of June 30, 2025, the total number of awarded shares held by the trustee under the scheme was 21,894,000 shares[54] - As of June 30, 2025, the number of awarded shares available for grant under the 2022 Restricted Share Award Scheme was 48,453,050 shares[54] Details of Changes in 2022 Restricted Share Award Scheme (As of June 30, 2025) | Category/Name of Grantee | Grant Date | Closing Price Immediately Before Grant Date (HKD) | Awarded Shares Not Yet Vested as of January 1, 2025 | Vested | Lapsed | Cancelled | Awarded Shares Not Yet Vested as of June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Mr. Li Hairong | September 27, 2024 | 0.66 | 390,000 | — | — | — | 390,000 | | Group Employees | January 6, 2023 | 3.00 | 3,108,000 | 1,257,000 | 241,000 | — | 1,610,000 | | Group Employees | September 27, 2024 | 0.66 | 3,028,000 | — | 113,000 | — | 2,915,000 | | Total | - | - | 6,526,000 | 1,257,000 | 354,000 | — | 4,915,000 | Employee Remuneration and Employment Relationship As of June 30, 2025, the Group had 609 employees, with total employee costs of RMB86.1 million, a decrease from the same period last year, and the company offers competitive remuneration, bonuses, and share-based compensation, along with comprehensive training programs to maintain staff quality - As of June 30, 2025, the Group had 609 employees[59] Total Employee Costs (For the six months ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Total Employee Costs | 86.1 | 98.3 | - The company provides employees with competitive remuneration, bonuses, and share-based compensation, along with comprehensive training programs[59] Changes in Directors' Biographical Details as Required by Rule 13.51B(1) of the Listing Rules From the publication date of the 2024 annual report until the date of this report, there were no changes in directors' biographical details requiring disclosure under Rule 13.51B(1) of the Listing Rules - From the publication date of the 2024 annual report until the date of this report, there were no changes in directors' biographical details requiring disclosure under Rule 13.51B(1) of the Listing Rules[60] Compliance with the Model Code for Securities Transactions by Directors The company has adopted the Model Code as the code of conduct for directors' securities transactions, and all directors confirmed strict compliance with the code during the reporting period after inquiry - The company has adopted the Model Code as the code of conduct for directors' securities transactions, and all directors confirmed strict compliance during the reporting period[62] Compliance with the Corporate Governance Code The company complied with all applicable Corporate Governance Code provisions during the reporting period, except for a deviation from Code Provision C.2.1 (roles of Chairman and Chief Executive should be separate), as the Board believes Mr. Chen Yonghui's dual role benefits business prospects and operational efficiency, with sufficient safeguards to ensure power balance within the Board - The company complied with all applicable Corporate Governance Code provisions, except for a deviation from Code Provision C.2.1 (roles of Chairman and Chief Executive should be separate)[63] - The Board believes that Mr. Chen Yonghui's dual role as Chairman and Chief Executive Officer benefits business prospects and operational efficiency, with three independent non-executive directors providing independent insights to ensure power balance[63] Purchase, Sale or Redemption of the Company's Listed Securities The company repurchased 376,000 shares for a total consideration of HKD357,013.14 during the reporting period under the repurchase mandate, holding them as treasury shares, with a total of 422,500 shares repurchased for HKD408,033.53 up to the date of this report, and neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities during the reporting period - The Directors have been granted a general mandate to repurchase shares not exceeding 10% of the total issued shares[64] Share Repurchase Details (During the Reporting Period up to the Date of this Report) | Repurchase Month | Number of Shares Repurchased | Total Consideration Paid (HKD) | | :--- | :--- | :--- | | January 2025 | 99,000 | 86,072.23 | | February 2025 | 30,500 | 32,042.69 | | March 2025 | — | — | | April 2025 | 87,000 | 81,907.86 | | May 2025 | 69,500 | 65,438.47 | | June 2025 | 90,000 | 91,551.89 | | July 2025 | 46,500 | 51,020.39 | | August 2025 (up to the Latest Practicable Date) | — | — | | Total | 422,500 | 408,033.53 | - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[66] Interim Dividend The Board does not recommend the payment of an interim dividend for the reporting period - The Board does not recommend the payment of an interim dividend for the reporting period (for the six months ended June 30, 2024: nil)[67] Audit Committee The Audit Committee has reviewed the Group's unaudited condensed consolidated interim results for the reporting period and is satisfied that they have been prepared in accordance with applicable accounting standards and the Listing Rules, with adequate disclosures and no objections to the accounting treatment - The Audit Committee has reviewed the Group's unaudited condensed consolidated interim results and is satisfied that they have been prepared in accordance with applicable accounting standards and the Listing Rules, with adequate disclosures and no objections to the accounting treatment[68] Contractual Arrangements The Board has reviewed the Group's overall performance under the contractual arrangements and believes that the Group has complied in all material respects with the contractual arrangements disclosed in the prospectus and the Foreign Investment Law of the People's Republic of China, with no updates to contractual arrangements or qualification requirements, nor any new contractual arrangements entered into, renewed, or re-entered into during the reporting period - The Board has reviewed the Group's overall performance under the contractual arrangements and believes that it has complied with the contractual arrangements disclosed in the prospectus and the Foreign Investment Law of the People's Republic of China in all material respects[69] - During the reporting period, there were no updates to contractual arrangements or qualification requirements, nor any new contractual arrangements entered into, renewed, or re-entered into[69] Events After the Reporting Period No significant events affecting the Group occurred from the end of the reporting period up to the date of this report - No significant events affecting the Group occurred from the end of the reporting period up to the date of this report[70] Condensed Consolidated Interim Statement of Comprehensive Income Details of Condensed Consolidated Interim Statement of Comprehensive Income This table presents the condensed consolidated interim statement of comprehensive income for the six months ended June 30, 2025, and the corresponding period in 2024, detailing revenue, cost of sales, gross profit, various operating expenses, net impairment loss on financial assets, other income, net finance costs, income tax expense, and loss and total comprehensive loss for the period Condensed Consolidated Interim Statement of Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Revenue | 410,907 | 647,469 | | Cost of Sales | (335,957) | (546,220) | | Gross Profit | 74,950 | 101,249 | | Selling and Distribution Expenses | (48,789) | (49,854) | | Administrative Expenses | (22,853) | (23,353) | | Research and Development Expenses | (28,598) | (32,790) | | Net Impairment Loss on Financial Assets | (2,744) | (2,726) | | Other Income | 1,636 | 2,867 | | Other (Losses)/Gains — Net | (570) | 501 | | Operating Loss | (26,968) | (4,106) | | Finance Income | 101 | 578 | | Finance Costs | (2,217) | (2,384) | | Finance Costs — Net | (2,116) | (1,806) | | Loss Before Income Tax | (29,084) | (5,912) | | Income Tax Expense | (154) | (228) | | Loss and Total Comprehensive Loss for the Period | (29,238) | (6,140) | | Loss Attributable to Owners of the Company | (25,874) | (6,444) | | Non-controlling Interests | (3,364) | 304 | | Basic and Diluted Loss Per Share | (0.048) | (0.012) | Condensed Consolidated Interim Statement of Financial Position Details of Condensed Consolidated Interim Statement of Financial Position This table presents the condensed consolidated interim statement of financial position as of June 30, 2025, and December 31, 2024, detailing non-current assets, current assets, total assets, equity attributable to owners of the company, non-controlling interests, total equity, non-current liabilities, current liabilities, and total liabilities Condensed Consolidated Interim Statement of Financial Position | Indicator | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Assets | | | | Non-current Assets | 32,569 | 39,765 | | Current Assets | 592,173 | 594,043 | | Total Assets | 624,742 | 633,808 | | Equity | | | | Equity Attributable to Owners of the Company | 306,665 | 331,621 | | Non-controlling Interests | (7,196) | (3,552) | | Total Equity | 299,469 | 328,069 | | Liabilities | | | | Non-current Liabilities | 2,137 | 8,026 | | Current Liabilities | 323,136 | 297,713 | | Total Liabilities | 325,273 | 305,739 | | Total Equity and Liabilities | 624,742 | 633,808 | Condensed Consolidated Interim Statement of Changes in Equity Details of Condensed Consolidated Interim Statement of Changes in Equity This table presents the condensed consolidated interim statement of changes in equity for the six months ended June 30, 2025, and the corresponding period in 2024, including opening balances, loss for the period, share-based payments, share exercises, share repurchases, non-controlling interest contributions, and dividends, across share capital, share premium, other reserves, accumulated losses, non-controlling interests, and total equity Condensed Consolidated Interim Statement of Changes in Equity (For the six months ended June 30, 2025) | Indicator | Share Capital (RMB'000) | Share Premium (RMB'000) | Other Reserves (RMB'000) | Accumulated Losses (RMB'000) | Total (RMB'000) | Non-controlling Interests (RMB'000) | Total Equity (RMB'000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Balance as of January 1, 2025 | 360 | 440,616 | (40,411) | (68,944) | 331,621 | (3,552) | 328,069 | | Loss for the period | — | — | — | (25,874) | (25,874) | (3,364) | (29,238) | | Share-based payments | — | — | 516 | — | 516 | — | 516 | | Exercise of shares related to employee share scheme | — | 1,121 | (390) | — | 731 | — | 731 | | Share repurchase | — | — | (329) | — | (329) | — | (329) | | Transactions with non-controlling interests - capital contribution | — | — | — | — | — | 20 | 20 | | Transactions with non-controlling interests - dividends | — | — | — | — | — | (300) | (300) | | Balance as of June 30, 2025 | 360 | 441,737 | (40,614) | (94,818) | 306,665 | (7,196) | 299,469 | Condensed Consolidated Interim Statement of Changes in Equity (For the six months ended June 30, 2024) | Indicator | Share Capital (RMB'000) | Share Premium (RMB'000) | Other Reserves (RMB'000) | Accumulated Losses (RMB'000) | Total (RMB'000) | Non-controlling Interests (RMB'000) | Total Equity (RMB'000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Balance as of January 1, 2024 | 360 | 439,569 | (31,474) | (72,490) | 335,965 | 3,055 | 339,020 | | Loss for the period | — | — | — | (6,444) | (6,444) | 304 | (6,140) | | Share-based payments | — | — | 1,176 | — | 1,176 | — | 1,176 | | Purchase of shares related to employee share scheme | — | — | (8,308) | — | (8,308) | — | (8,308) | | Exercise of shares related to employee share scheme | — | 1,047 | (242) | — | 805 | — | 805 | | Balance as of June 30, 2024 | 360 | 440,616 | (38,848) | (78,934) | 323,194 | 3,359 | 326,553 | Condensed Consolidated Interim Statement of Cash Flows Details of Condensed Consolidated Interim Statement of Cash Flows This table presents the condensed consolidated interim statement of cash flows for the six months ended June 30, 2025, and the corresponding period in 2024, detailing net cash flows from operating, investing, and financing activities, as well as the net increase/(decrease) in cash and cash equivalents and their period-end balances Condensed Consolidated Interim Statement of Cash Flows (For the six months ended June 30) | Indicator | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Net Cash From/(Used In) Operating Activities | 30,779 | (74,110) | | Net Cash Used In Investing Activities | (162) | (9,487) | | Net Cash Used In Financing Activities | (7,402) | (14,643) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 23,215 | (98,240) | | Cash and Cash Equivalents at Beginning of Period | 71,413 | 192,278 | | Cash and Cash Equivalents at End of Period | 94,561 | 94,074 | Notes to the Condensed Consolidated Interim Financial Information 1 General Information This section provides basic company information, including its registration location, principal business activities, ultimate controlling shareholders, and ultimate holding company, noting its primary engagement in providing smart customer relationship management (CRM) services in the People's Republic of China - Xuanwu Cloud Technology Holdings Limited was incorporated in the Cayman Islands on April 26, 2021[83] - The Group is principally engaged in providing smart customer relationship management (CRM) services in the People's Republic of China[83] - The ultimate controlling shareholders are Mr. Chen Yonghui, Mr. Huang Fangjie, and Mr. Li Hairong, who have entered into an agreement to act in concert with each other[83] 2 Basis of Preparation This condensed consolidated interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting', is unaudited, and should be read in conjunction with the financial statements for the year ended December 31, 2024 - This condensed consolidated interim financial information has been prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting'[86] - This condensed consolidated interim financial information is unaudited and should be read in conjunction with the financial statements for the year ended December 31, 2024[85][86] 3 Accounting Policies This section describes the accounting policies adopted by the Group, which are consistent with those applied in the preparation of the financial statements for the year ended December 31, 2024, except for the adoption of new and revised standards, none of which have had a significant impact on the condensed consolidated interim financial information, nor are new standards not yet effective expected to have a material impact - The accounting policies applied are consistent with those applied in the preparation of the Group's financial statements for the year ended December 31, 2024, except for the adoption of new and revised standards[87] - The adoption of new and revised standards (such as amendments to HKAS 21 and HKFRS 1) had no significant impact on the Group's condensed consolidated interim financial information[87] - New standards and amendments not yet effective (such as amendments to HKFRS 18 and HKFRS 19) are not expected to have a significant impact on the Group's condensed consolidated interim financial information[88] 4 Critical Accounting Estimates and Judgements This section highlights that the preparation of interim financial information requires management to make judgments, estimates, and assumptions affecting the application of accounting policies and the amounts reported in the financial statements, and actual results may differ from these estimates, with the primary sources of estimation uncertainty being the same as those applied in the financial statements for the year ended December 31, 2024 - In preparing the interim financial information, management is required to make judgments, estimates, and assumptions that affect the application of accounting policies and the amounts reported in the financial statements[89] - The key judgments and major sources of estimation uncertainty are the same as those applied in the Group's financial statements for the year ended December 31, 2024[89] 5 Financial Risk Management The Group is exposed to market risks (including foreign exchange risk, price risk, cash flow and fair value interest rate risk), credit risk, and liquidity risk, and this interim financial information does not include all financial risk management information required in annual financial statements, with no changes in risk management department or policies since the year-end - The Group is exposed to market risks (including foreign exchange risk, price risk, cash flow and fair value interest rate risk), credit risk, and liquidity risk[90] - There have been no changes in the risk management department or risk management policies since the year-end[91] 6 Segment Information The Group's operating segments are divided into CRM PaaS services and CRM SaaS services, with the chief operating decision maker assessing performance based on gross profit for each segment, reporting PaaS revenue of RMB165,951 thousand and SaaS revenue of RMB244,956 thousand for the six months ended June 30, 2025, and SaaS gross profit of RMB64,999 thousand and PaaS gross profit of RMB9,951 thousand - The Group's operating segments are CRM PaaS services and CRM SaaS services[93][94] - The chief operating decision maker assesses the performance of the operating segments based on their gross profit[94] Segment Performance (For the six months ended June 30, 2025) | Segment | Revenue (RMB'000) | Cost of Sales (RMB'000) | Gross Profit (RMB'000) | | :--- | :--- | :--- | :--- | | PaaS | 165,951 | (156,000) | 9,951 | | SaaS | 244,956 | (179,957) | 64,999 | | Total | 410,907 | (335,957) | 74,950 | Segment Performance (For the six months ended June 30, 2024) | Segment | Revenue (RMB'000) | Cost of Sales (RMB'000) | Gross Profit (RMB'000) | | :--- | :--- | :--- | :--- | | PaaS | 282,411 | (265,456) | 16,955 | | SaaS | 365,058 | (280,764) | 84,294 | | Total | 647,469 | (546,220) | 101,249 | 7 Revenue The Group's revenue primarily comprises proceeds from providing PaaS and SaaS, with PaaS revenue of RMB165,951 thousand and SaaS revenue of RMB244,956 thousand for the six months ended June 30, 2025, and most revenue recognized at a point in time, with contract liabilities of RMB62,158 thousand - Revenue primarily comprises proceeds from providing PaaS and SaaS[98] Revenue by Category (For the six months ended June 30) | Category | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | PaaS | 165,951 | 282,411 | | SaaS | 244,956 | 365,058 | | Total | 410,907 | 647,469 | Revenue by Recognition Timing (For the six months ended June 30) | Recognition Timing | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | At a point in time | 390,237 | 629,875 | | Over time | 20,670 | 17,594 | | Total | 410,907 | 647,469 | Contract Liabilities | Indicator | June 30, 2025 (RMB'000) | December 31, 2024 (RMB'000) | | :--- | :--- | :--- | | Contract Liabilities | 62,158 | 37,535 | 8 Expenses by Nature This section details expenses included in cost of sales, selling and distribution expenses, research and development expenses, and administrative expenses, with total expenses of RMB436,197 thousand for the six months ended June 30, 2025, and telecom resource costs being the largest component at RMB321,281 thousand Expenses by Nature (For the six months ended June 30) | Expense Category | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Telecom resource costs | 321,281 | 516,683 | | Employee benefit expenses | 86,137 | 98,332 | | Travel and entertainment expenses | 6,536 | 8,284 | | Outsourced customer service expenses | 5,746 | 5,590 | | Depreciation and amortization expenses | 4,724 | 4,984 | | Infrastructure and equipment expenses | 3,916 | 3,542 | | Professional service fees | 3,294 | 2,711 | | Marketing and promotion expenses | 929 | 1,383 | | Taxes and other levies | 837 | 1,219 | | Conference and office expenses | 653 | 914 | | Outsourced implementation costs | 330 | 5,751 | | Lease payments for short-term leases | 240 | 246 | | Auditor's remuneration | 75 | 9 | | Others | 1,499 | 2,569 | | Total | 436,197 | 652,217 | 9 Employee Benefit Expenses For the six months ended June 30, 2025, total employee benefit expenses were RMB86,137 thousand, a decrease from the same period last year, comprising RMB75,730 thousand for salaries, wages, and bonuses, RMB9,891 thousand for social insurance and other employee benefits, and RMB516 thousand for share-based payments Employee Benefit Expenses (For the six months ended June 30) | Expense Category | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Salaries, wages and bonuses | 75,730 | 85,592 | | Social insurance expenses, housing benefits and other employee benefits | 9,891 | 11,564 | | Share-based payments | 516 | 1,176 | | Total | 86,137 | 98,332 | - Employees of the Group's PRC subsidiaries participate in defined contribution retirement schemes, contributing a certain percentage of their salaries[101] 10 Other Income For the six months ended June 30, 2025, other income was RMB1,636 thousand, a decrease from RMB2,867 thousand in the same period last year, primarily due to reduced government grants and VAT refunds Other Income (For the six months ended June 30) | Income Category | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | VAT refunds | 1,294 | 1,505 | | Government grants | 123 | 1,123 | | Others | 219 | 239 | | Total | 1,636 | 2,867 | - VAT refund policy allows software enterprises to enjoy VAT refunds for the portion of actual tax burden exceeding 3% of sales when selling self-developed software[104] - Government grants primarily include growth incentives for first-time transition from below-scale to above-scale enterprises in Guangzhou Development Zone (Huangpu District) and subsidies for promoting high-quality development of commercial services in Guangzhou City[104] 11 Other (Losses)/Gains — Net For the six months ended June 30, 2025, other net losses were RMB570 thousand, compared to net gains of RMB501 thousand in the same period of 2024, primarily comprising net loss on disposal of property, plant and equipment, fair value gains on financial assets, and foreign exchange losses Other (Losses)/Gains — Net (For the six months ended June 30) | Category | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Net loss on disposal of property, plant and equipment | (2) | (1) | | Net fair value gains on financial assets at fair value through profit or loss | 276 | 513 | | Net foreign exchange (losses)/gains | (67) | 36 | | Others | (777) | (47) | | Total | (570) | 501 | 12 Finance Costs — Net For the six months ended June 30, 2025, net finance costs were RMB2,116 thousand, an increase from RMB1,806 thousand in the same period of 2024, primarily consisting of interest expense on borrowings Finance Costs — Net (For the six months ended June 30) | Category | 2025 (RMB'000) | 2024 (RMB'000) | | :--- | :--- | :--- | | Finance income - interest income from bank deposits | 101 | 578 | | Finance costs - interest expense on lease liabilities | (91) | (250) | | Finance costs - interest expense on borrowings | (2,126) | (2,134) | | Finance Costs — Net | (2,116) | (1,806) | [13 Income T