云工场(02512) - 2025 - 中期财报

Company Information Board of Directors and Committees This section details the composition of the Board of Directors and its committees, outlining the company's governance structure - Mr. Sun Tao serves as the company's Chairman and Chief Executive Officer[3] - The company has established Audit, Remuneration, and Nomination Committees to ensure effective corporate governance[3] Company Basic Information This section provides essential company details, including registration, operations, stock information, and key professional contacts - The company's stock code is 2512, and its official website is **www.cloudcsp.com**[3](index=3&type=chunk) - The registered office is in the Cayman Islands, with headquarters and principal place of business in Wuxi, Jiangsu Province, China[3][4] - The auditor is Ernst & Young[4] Financial Highlights Key Financial Indicators For the six months ended June 30, 2025, the company reported a 10.03% revenue increase and an 18.97% profit growth, maintaining stable earnings per share | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 406,759 | 369,696 | 10.03 | | Gross Profit | 47,690 | 47,110 | 1.23 | | Profit Before Tax | 16,507 | 14,850 | 11.16 | | Profit for the Period | 14,923 | 12,543 | 18.97 | | Earnings Per Share (RMB) | 0.03 | 0.03 | — | Management Discussion and Analysis Business Review In H1 2025, the company shifted its focus to scenario-based edge computing and AI services, launching new offerings, achieving market recognition, and driving R&D innovation - Business focus expanded from building edge computing infrastructure to developing scenario-based edge computing applications and deep integration with various industries, strengthening the core strategy of 'Edge Cloud + AI Services'[7] - Established a '10-kilometer low-latency computing service circle' covering over 2,000 districts and counties nationwide, building a comprehensive technology stack spanning MaaS and SaaS layers[7] - Successfully launched EdgeAIStation service, Lingjing Cloud large model private deployment solution, and computing power scheduling solution[8] - Received multiple accolades, including being recognized as a Top 20 Chinese Edge Computing Enterprise for three consecutive years and inclusion in the '2025 Government Industry Xinchuang Ecosystem Map'[9] - R&D efforts focused on real-time video stream intelligent analysis technology and advancing cloud-edge collaborative intelligent IoT systems, with a H2 focus on service quality and AI large model research[9] Outlook The company plans to focus on intelligent computing service expansion, R&D, ecosystem partnerships, and a 'government-enterprise dual-driven' model, leveraging national strategic initiatives - New business expansion will focus on intelligent computing services, providing comprehensive computing resources and processing capabilities, including hardware consulting, deployment, network enhancement, platform construction, equipment procurement, technical support, and leasing services[10] - Technology R&D will optimize multimodal AI large models for edge computing scenarios, develop products related to computing power, AI models, and data services, building a full-stack technology system from IaaS to SaaS[11] - Strengthen ecosystem partnerships, co-establish edge AI laboratories with universities, and collaborate with renowned hardware manufacturers and vertical industry participants to build a comprehensive ecosystem[12] - Build a 'government-enterprise dual-driven' business model, with government support for AI industry development and enterprise-side provision of secure, customized intelligent assistants and AI models[13] Financial Overview H1 revenue grew by 10.0% driven by IDC and edge computing services, while gross margin slightly declined; profit for the period increased by 18.97% due to lower listing expenses and improved cost management Segment Revenue (RMB thousand) | Service Type | H1 2025 | Share (%) | H1 2024 | Share (%) | | :--- | :--- | :--- | :--- | :--- | | IDC Solution Services | 376,077 | 92.5 | 348,699 | 94.3 | | Edge Computing Services | 29,228 | 7.2 | 20,997 | 5.7 | | Other Services | 1,454 | 0.3 | — | — | | Total Revenue | 406,759 | 100.0 | 369,696 | 100.0 | - Revenue from IDC solution services increased by 7.9% to RMB376.1 million, primarily due to regular business expansion[16] - Revenue from edge computing services significantly increased by 39.0% to RMB29.2 million, mainly driven by growing market demand for EdgeCDN services and new customer acquisition[17] - Cost of sales increased by 11.3% to RMB359.1 million, with edge computing services' cost of sales growing by 47.9%, primarily due to rising unit prices for bandwidth resources and significant revenue growth[19][21] - Overall gross profit margin decreased from approximately 12.7% to approximately 11.7%, mainly due to strategic price adjustments for IDC solution services and increased bandwidth procurement costs for edge computing services[22][23][24] - Other income and gains decreased by 11.6% to RMB3.8 million, primarily due to a reduction in government grants received[26] - Selling and distribution expenses decreased by 13.9% to RMB3.1 million, and administrative expenses decreased by 17.6% to RMB17.3 million, mainly attributable to strengthened internal management controls and no listing expenses incurred during the reporting period[27][28] - R&D expenses increased by 38.8% to RMB9.3 million, primarily due to higher staff costs from an expanded R&D team and increased depreciation expenses for R&D equipment purchases[29] - Profit for the period increased by 18.97% to RMB14.9 million, mainly benefiting from reduced listing expenses and the Group's strengthened internal controls over cost management[34] Liquidity and Financial Resources Trade receivables and payables increased due to business expansion, while cash and cash equivalents slightly decreased; the gearing ratio remained reasonable under prudent treasury management - Trade receivables increased to RMB300.5 million (end of 2024: RMB235.0 million), primarily due to revenue growth[35] - Prepayments, other receivables, and other assets increased to RMB225.8 million (end of 2024: RMB216.0 million), mainly due to purchase discounts provided by suppliers[36] - Trade payables increased to RMB216.3 million (end of 2024: RMB199.6 million), primarily attributable to business expansion[37] - Cash and cash equivalents amounted to RMB348.1 million (end of 2024: RMB371.0 million)[39] Debt Situation (RMB thousand) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Interest-bearing Bank Borrowings | 294,567 | 262,811 | | Lease Liabilities | 262 | 494 | | Total Debt | 294,829 | 263,305 | - The gearing ratio increased from 0.6 times as of December 31, 2024, to approximately 0.7 times as of June 30, 2025[43] Exchange Rate Fluctuation Risk and Future Plans The company faces RMB/HKD exchange rate risk, with management monitoring and considering hedging; no major investments or disposals occurred, but future opportunities will be explored - The Group's business is primarily conducted in RMB, while non-RMB assets and liabilities are denominated in HKD; exchange rate fluctuations may impact operating results, and management will continue to monitor and consider hedging measures[44] - During the reporting period, the Group did not undertake any significant investments, acquisitions, or disposals, nor did it pledge any assets[45][46][47] - Other than as disclosed, the Group has no future plans for significant investments and capital assets but will continue to explore investment opportunities beneficial to shareholders as a whole[48] Other Information Directors' and Major Shareholders' Interests This section details directors' and major shareholders' interests in the company's shares, with Mr. Sun Tao holding 75% through Ru Yi IT as the controlling shareholder Shareholdings of Directors and Chief Executive | Director Name | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | | Mr. Sun Tao ('Mr. Sun') | Interest in Controlled Corporation | 345,000,000 | 75.0% | Major Shareholders' Shareholdings | Shareholder Name | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | | Ru Yi IT | Beneficial Owner | 345,000,000 | 75% | - Mr. Sun Tao beneficially and wholly owns Ru Yi IT and is deemed to be interested in the 345,000,000 shares held by Ru Yi IT, representing approximately 75% of the company's issued share capital[49][50][51][52] Use of Proceeds from Global Offering Net proceeds from the global offering totaled approximately HKD336.8 million, with HKD49.1 million utilized by June 30, 2025, for business improvements, edge computing upgrades, talent, R&D, and working capital - The net proceeds from the global offering amounted to approximately HKD336.8 million[53] Use and Application of Net Proceeds from Global Offering (HKD'000) | Purpose | Approximate Allocation | Approximate Percentage | Amount Utilized During Reporting Period | Unutilized Amount as of June 30 | | :--- | :--- | :--- | :--- | :--- | | Existing Business Improvement and Operational Development | 160,654 | 47.7 | 14,096 | 114,327 | | Full Implementation and Upgrade of Our Edge Computing Services | 62,308 | 18.5 | 17,437 | 3,344 | | Recruitment of Talent for IDC Solution Services and Edge Computing Services Operations | 43,110 | 12.8 | 6,478 | 29,161 | | R&D Collaboration with Universities and Research Institutions | 37,048 | 11.0 | 171 | 26,246 | | Working Capital and General Corporate Purposes | 33,680 | 10.0 | 10,932 | 11,912 | | Total | 336,800 | 100.0 | 49,114 | 184,990 | - As of June 30, 2025, approximately HKD49.1 million of net proceeds has been utilized, with HKD184.99 million remaining unutilized[54] Employee Remuneration and Relations As of June 30, 2025, the Group employed 121 staff, with total employee expenses increasing by 17.3%, supported by comprehensive training and a share award scheme - As of June 30, 2025, the Group had a total of 121 employees[55] - For the six months ended June 30, 2025, total staff costs (including directors' emoluments) were approximately RMB17.6 million, an increase of 17.3% from RMB15.0 million in the same period last year[55] - The Group has established comprehensive training programs covering corporate culture, employee rights and responsibilities, team building, professional conduct, and work performance[55] Share Award Scheme A post-IPO restricted share unit scheme was adopted to incentivize and retain talent by aligning employee and shareholder interests, valid for ten years, with no awards granted to date - The Board adopted and approved a share award scheme on May 14, 2024, aiming to provide selected participants with opportunities to acquire ownership interests in the company and to incentivize and retain them to serve the Group[56][57] - The total number of relevant awarded shares granted under the scheme shall not exceed 10% of the company's issued shares immediately following listing (i.e., 46,000,000 shares)[57] - The post-IPO restricted share unit scheme is valid for ten (10) years from the listing date, and as of the date of this report, no awarded shares have been granted, exercised, cancelled, lapsed, or remain outstanding under the scheme[58][59] Corporate Governance The company adheres to the Model Code and Corporate Governance Code principles, with the combined Chairman and CEO role deemed beneficial for efficiency, subject to safeguards and regular review - The company has made specific inquiries to all directors regarding any non-compliance with the Model Code, and all directors have confirmed compliance with the required standards therein[61] - The company has applied the principles of the Corporate Governance Code and complied with all applicable code provisions, except for the roles of Chairman and Chief Executive Officer being held by Mr. Sun Tao, which deviates from code provision C.2.1[62] - The Board believes that Mr. Sun Tao's dual role benefits the Group's business prospects and operational efficiency, and the presence of three independent non-executive directors provides independent perspectives, ensuring a sufficient balance of power within the Board[62] - The Board will regularly review whether it is necessary to appoint different individuals to serve as Chairman and Chief Executive Officer[62] Other Important Matters No listed securities were purchased, sold, or redeemed, nor was an interim dividend declared; the Audit Committee reviewed interim results and confirmed compliance with contractual arrangements - During the reporting period, neither the company nor any of its subsidiaries purchased, redeemed, or sold any of the company's listed securities[63] - The Board has resolved not to declare any interim dividend for the six months ended June 30, 2025[64] - The Audit Committee has reviewed the Group's unaudited condensed consolidated interim results for the reporting period, deeming them prepared in accordance with applicable accounting standards and the Listing Rules, without any objections[65] - The Board has reviewed the overall performance of the contractual arrangements and believes that the Group has complied with the contractual arrangements in all material respects during the reporting period and up to the date of this interim report[66] Events After Reporting Period Post-reporting period, the company raised approximately HKD228 million from a new share subscription for business enhancement and expansion, and formed a joint venture with Shannon Semiconductor for intelligent computing services - On July 18, 2025, the company entered into subscription agreements with two subscribers to issue and subscribe for a total of 45,985,000 new shares at a subscription price of HKD4.98 per share[67] - The subscription was completed on August 18, 2025, with the company receiving total net proceeds of approximately HKD228,000,000, intended for enhancing core business, business expansion, establishing proprietary intelligent computing centers, and supplementing working capital[68] - On August 12, 2025, Wuxi Lingjing Cloud Information Technology Co., Ltd., a subsidiary of the company, entered into a joint venture agreement with Shannon Semiconductor Technology Co., Ltd. to establish a joint venture to explore the intelligent computing services market, with Wuxi Lingjing Cloud holding a 75% interest[69] Financial Statements Condensed Consolidated Interim Statement of Profit or Loss For the six months ended June 30, 2025, revenue was RMB406.8 million, profit for the period was RMB14.9 million, and basic and diluted EPS was RMB0.03 Condensed Consolidated Interim Statement of Profit or Loss Summary (RMB thousand) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | 406,759 | 369,696 | | Cost of Sales | (359,069) | (322,586) | | Gross Profit | 47,690 | 47,110 | | Other Income and Gains | 3,754 | 4,321 | | Selling and Distribution Expenses | (3,147) | (3,639) | | Administrative Expenses | (17,289) | (20,963) | | R&D Expenses | (9,270) | (6,683) | | Impairment Loss on Financial Assets | (1,690) | (2,335) | | Other Expenses | (40) | (20) | | Finance Costs | (3,501) | (2,941) | | Profit Before Tax | 16,507 | 14,850 | | Income Tax Expense | (1,584) | (2,307) | | Profit for the Period | 14,923 | 12,543 | | Profit Attributable to Owners of the Parent | 14,687 | 12,320 | | Profit Attributable to Non-controlling Interests | 236 | 223 | | Basic and Diluted Earnings Per Share (RMB) | 0.03 | 0.03 | Condensed Consolidated Interim Statement of Comprehensive Income For the six months ended June 30, 2025, total comprehensive income was RMB13.1 million, a decrease primarily due to exchange differences on foreign operations translation Condensed Consolidated Interim Statement of Comprehensive Income Summary (RMB thousand) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit for the Period | 14,923 | 12,543 | | Other Comprehensive Income (net of tax) | (1,854) | 4,409 | | Total Comprehensive Income for the Period | 13,069 | 16,952 | | Attributable to Owners of the Parent | 12,833 | 16,729 | | Attributable to Non-controlling Interests | 236 | 223 | - In H1 2025, exchange differences on translation of foreign operations resulted in a net other comprehensive loss of RMB4,937 thousand, compared to a gain of RMB4,409 thousand in H1 2024[74] Condensed Consolidated Interim Statement of Financial Position As of June 30, 2025, total assets reached RMB960.8 million, with current assets forming a large portion; equity attributable to owners of the parent increased to RMB415.3 million, and total current liabilities were RMB541.8 million Condensed Consolidated Interim Statement of Financial Position Summary (RMB thousand) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | ASSETS | | | | Non-current Assets | 85,593 | 89,219 | | Current Assets | 875,158 | 822,187 | | Total Assets | 960,751 | 911,406 | | EQUITY | | | | Equity Attributable to Owners of the Parent | 415,275 | 402,442 | | Non-controlling Interests | 3,714 | 3,478 | | Total Equity | 418,989 | 405,920 | | LIABILITIES | | | | Non-current Liabilities | — | 9 | | Current Liabilities | 541,762 | 505,477 | | Total Liabilities | 541,762 | 505,486 | | Total Equity and Liabilities | 960,751 | 911,406 | - Net current assets increased from RMB316.7 million as of December 31, 2024, to RMB333.4 million as of June 30, 2025[75] Condensed Consolidated Interim Statement of Changes in Equity Equity attributable to owners of the parent increased from RMB402.4 million (end of 2024) to RMB415.3 million (June 30, 2025), primarily due to profit for the period Changes in Equity Attributable to Owners of the Parent (RMB thousand) | Metric | December 31, 2024 (Audited) | Profit for the Period | Exchange Fluctuation Reserve | June 30, 2025 (Unaudited) | | :--- | :--- | :--- | :--- | :--- | | Share Capital | 33 | — | — | 33 | | Share Premium | 332,265 | — | — | 332,265 | | Merger Reserve | 31,104 | — | — | 31,104 | | Statutory Surplus Reserve | 11,133 | — | — | 11,133 | | Exchange Fluctuation Reserve | 6,349 | — | (1,854) | 4,495 | | Retained Profits | 21,558 | 14,687 | — | 36,245 | | Total | 402,442 | 14,687 | (1,854) | 415,275 | - Profit for the period was RMB14,687 thousand, significantly contributing to equity attributable to owners of the parent[76] Condensed Consolidated Interim Statement of Cash Flows For the six months ended June 30, 2025, net cash flow from operating activities was negative RMB54.4 million, investing activities positive RMB5.3 million, and financing activities positive RMB28.0 million, leading to a decrease in period-end cash Condensed Consolidated Interim Statement of Cash Flows Summary (RMB thousand) | Activity Type | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash Flows Used in Operating Activities | (54,411) | (397,793) | | Net Cash Flows From/(Used in) Investing Activities | 5,281 | (24,915) | | Net Cash Flows From Financing Activities | 28,023 | 420,597 | | Net Decrease in Cash and Cash Equivalents | (21,107) | (2,111) | | Cash and Cash Equivalents at End of Period | 348,055 | 164,639 | - Net cash flows used in operating activities amounted to RMB(54,411) thousand, primarily impacted by an increase in trade receivables[77] - Net cash flows from investing activities amounted to RMB5,281 thousand, mainly benefiting from the repayment of long-term receivables[77] - Net cash flows from financing activities amounted to RMB28,023 thousand, primarily from new bank loans less repayment of bank loans and interest paid[78] Notes to the Condensed Consolidated Interim Financial Information Company Information and Basis of Presentation Incorporated in the Cayman Islands, the company primarily provides IDC and edge computing services in mainland China; interim financials are prepared under IAS 34 and should be read with annual statements - The company was incorporated as a limited liability company in the Cayman Islands on December 10, 2021[79] - The Group is principally engaged in providing Internet Data Centre (IDC) solution services, edge computing services, and other services in mainland China[79] - The condensed consolidated interim financial information for the six months ended June 30, 2025, has been prepared in accordance with International Accounting Standard 34[80] Changes in Accounting Policies and Disclosures Accounting policies for interim financials are consistent with annual statements, except for the first-time adoption of revised IAS 21 'Lack of Exchangeability,' which had no material impact - The accounting policies adopted in the preparation of the condensed consolidated interim financial information are consistent with those applied in the preparation of the Group's annual consolidated financial statements for the year ended December 31, 2024, except for the first-time adoption of the following revised International Financial Reporting Standards for the financial information of the current period[81] - Revised IAS 21 'Lack of Exchangeability' had no impact on the condensed consolidated interim financial information, as the currencies used for transactions by the Group and the functional currencies used by Group entities for translation to the Group's presentation currency are exchangeable[82] Operating Segments and Geographical Information The Group operates as a single reportable segment providing IDC and edge computing services in mainland China, with all revenue and non-current assets originating domestically, thus no further segment or geographical analysis is presented - The Group is principally a provider of IDC solution services, edge computing services, and other services in mainland China[83] - As the Group has only one reportable operating segment, no further operating segment analysis is presented[83] - During the reporting period, all of the Group's revenue was derived from customers located in mainland China, and all of the Group's non-current assets were located in mainland China; therefore, no further geographical information is presented in accordance with IFRS 8[84] Details of Revenue, Other Income and Gains Total revenue from customer contracts was RMB406.8 million, mainly from IDC and edge computing services; other income, including government grants and interest, saw a significant year-on-year decrease in grants Breakdown of Revenue from Contracts with Customers (RMB thousand) | Type of Goods or Services | H1 2025 | H1 2024 | | :--- | :--- | :--- | | IDC Solution Services | 376,077 | 348,699 | | Edge Computing Services | 29,228 | 20,997 | | Other Services | 1,454 | — | | Total | 406,759 | 369,696 | Analysis of Other Income and Gains (RMB thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Government Grants | 372 | 3,502 | | Bank Interest Income | 255 | 198 | | Interest Income from Long-term Receivables | 2,921 | 621 | | Others | 206 | — | | Total | 3,754 | 4,321 | - Government grants significantly decreased from RMB3,502 thousand in H1 2024 to RMB372 thousand in H1 2025[86] Components of Profit Before Tax Profit before tax is impacted by cost of sales, depreciation, R&D, employee benefits, and financial asset impairment; listing expenses were zero this period, down from RMB7,507 thousand last year - Cost of services provided was RMB359,069 thousand, and depreciation of property, plant and equipment was RMB4,197 thousand[87] - R&D expenses amounted to RMB9,270 thousand, and total employee benefit expenses were RMB17,594 thousand[87] - Impairment loss on financial assets was RMB1,690 thousand, bank interest income was RMB(255) thousand, and interest income from long-term receivables was RMB(2,921) thousand[87] - No listing expenses were incurred during the reporting period, compared to RMB7,507 thousand in the corresponding period of 2024[87] Finance Costs and Income Tax Finance costs, mainly bank borrowing interest, increased by 20.7%; income tax expense decreased by 30.4%, primarily due to lower listing expenses Analysis of Finance Costs (RMB thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Interest on Bank Borrowings | 3,490 | 2,915 | | Interest on Lease Liabilities | 11 | 26 | | Total | 3,501 | 2,941 | Analysis of Income Tax Expense (RMB thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Current | 1,974 | 2,331 | | Deferred | (390) | (24) | | Total | 1,584 | 2,307 | - The decrease in income tax expense was mainly due to the reduction in listing expenses, which was one of the bases for determining income tax expense[33] Dividends and Earnings Per Share No interim dividend was distributed or proposed; basic and diluted EPS was RMB0.03, calculated based on profit attributable to ordinary equity holders and weighted average shares - No interim dividend was distributed or proposed to ordinary shareholders of the company for the six months ended June 30, 2025[91] Earnings Per Share Calculation (RMB thousand/share) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit Attributable to Ordinary Equity Holders of the Parent | 14,687 | 12,320 | | Weighted Average Number of Ordinary Shares Outstanding During the Period | 460,000,000 | 382,083,333 | | Basic and Diluted Earnings Per Share (RMB) | 0.03 | 0.03 | Notes to Statement of Financial Position Items This section details changes and composition of property, plant and equipment, other non-current assets, trade receivables, prepayments, other receivables, other assets, trade payables, and interest-bearing bank borrowings - For the six months ended June 30, 2025, the Group acquired property, plant and equipment at a cost of RMB12,099 thousand, and disposed of assets with a net book value of RMB6 thousand, resulting in a net loss on disposal of RMB5 thousand[94] - As of June 30, 2025, net long-term receivables within other non-current assets amounted to RMB42,205 thousand, of which RMB23,859 thousand were long-term receivables due within one year[95] Ageing Analysis of Trade Receivables (RMB thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 year | 259,898 | 191,579 | | 1 to 2 years | 40,587 | 43,463 | | Total | 300,485 | 235,042 | - Prepayments, other receivables, and other assets totaled RMB225,847 thousand, with prepayments amounting to RMB159,707 thousand[97] Ageing Analysis of Trade Payables (RMB thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 1 year | 212,626 | 199,048 | | 1 to 2 years | 3,683 | 550 | | Total | 216,309 | 199,598 | - Total interest-bearing bank borrowings amounted to RMB294,567 thousand, all unsecured and due within one year, with effective interest rates ranging from 1.80% to 3.00%[99] - Issued and fully paid share capital comprised 460,000,000 ordinary shares with a par value of RMB32,722 thousand[101] Commitments and Related Party Transactions The Group had no significant contractual commitments at period-end; total key management personnel remuneration was RMB3,702 thousand - As of June 30, 2025, and December 31, 2024, the Group had no significant contractual commitments[102] Key Management Personnel Remuneration (RMB thousand) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Short-term Employee Benefits | 3,436 | 4,294 | | Pension Scheme Contributions | 266 | 287 | | Total | 3,702 | 4,581 | Fair Value of Financial Instruments The carrying amounts of the Group's financial instruments approximate fair values due to short-term maturities; the finance department manages fair value measurement policies, reviewed regularly with the Audit Committee - The carrying amounts of the Group's financial instruments approximate their fair values, primarily due to their short-term maturities[104] - The Group's finance department, led by the finance manager, is responsible for determining policies and procedures for fair value measurement of financial instruments, with valuation procedures and results discussed twice annually with the Audit Committee[104] Events After the Reporting Period Post-reporting period, the company raised approximately HKD228 million from a new share subscription for business enhancement and expansion, and formed a joint venture with Shannon Semiconductor for intelligent computing services - On July 18, 2025, the company entered into subscription agreements with two subscribers to subscribe for a total of 45,985,000 subscription shares at a subscription price of HKD4.98 per share[106] - The subscription was completed on August 18, 2025, with the subscription shares issued to subscribers at the subscription price, yielding total net proceeds of approximately HKD228,000,000[107] - On August 12, 2025, Wuxi Lingjing Cloud Information Technology Co., Ltd., a subsidiary of the company, entered into a joint venture agreement with Shannon Semiconductor Technology Co., Ltd. to establish a joint venture with a registered capital of RMB120 million to explore the intelligent computing services market[108] Definitions Definitions of Terms This section defines key terms used throughout the report, including AI, Board, CDN, edge computing, global offering, and IDC services, for clear comprehension - The report defines key business and technical terms such as AI, CDN, edge computing services, and IDC solution services[110] - Definitions for entities and roles such as the Company, the Group, controlling shareholder, and Directors are clarified[110][111]