第七大道(00797) - 2025 - 中期财报

Corporate Profile This section provides an overview of the company's governance structure, including its Board of Directors and committees, along with essential corporate information and contact details Board of Directors and Committees This section outlines the composition of the company's Board of Directors, Audit Committee, Remuneration Committee, and Nomination Committee, including changes in director and joint company secretary appointments and resignations - Mr. Liu Zhizhen was appointed as an executive director on January 26, 2025[4] - Mr. Li Zhengquan resigned as an executive director on January 26, 2025[4] - Mr. Yang Cheng was appointed as a joint company secretary on January 26, 2025[5] - Mr. Zheng Chengjie was appointed as a joint company secretary and authorized representative on July 10, 2025[5] Corporate Information and Contacts This section provides detailed information on the company's auditor, legal counsel, website, stock code, registered office, principal place of business, share registrar, and principal bankers - The company's auditor is ZHONGHUI ANDA CPA Limited[8] - The company's stock code is 797[8] - The company's principal bankers include Bank of China Shenzhen Qianhaiwan Branch and China Merchants Bank Shanghai Xuhui Binjiang Branch[11] Financial Performance Highlights For the six months ended June 30, 2025, revenue from continuing operations increased by 26.5% to approximately RMB 176.4 million, achieving a profit of approximately RMB 26.1 million for the period, reversing the loss from the same period last year 2025 H1 Financial Performance Summary | Metric | 2025 H1 (RMB thousands) | 2024 H1 (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | | Revenue | 176,387 | 139,389 | +26.5% | | Profit/(Loss) for the period | 26,099 | (5,971) | Turned from loss to profit | | Profit/(Loss) for the period attributable to owners of the Company | 27,129 | (7,814) | Turned from loss to profit | Management Discussion and Analysis This section analyzes the company's performance, covering industry overview, business review, future outlook, and a detailed financial review, including operational data, income statement, liquidity, investments, and human resources Industry Overview In the first half of 2025, China's game market achieved record-high actual sales revenue and player scale, driven by new game performance, stable growth of evergreen games, and strong momentum in esports and mini-program games 2025 H1 China Game Market Data | Metric | Amount/Quantity | Year-on-year growth rate | | :--- | :--- | :--- | | Actual Sales Revenue | approx RMB 168.0 billion | approx 14.08% | | Game Player Scale | nearly 679 million people | approx 0.72% | | Mobile Game Market Actual Sales Revenue | approx RMB 125.31 billion | approx 16.55% | | Client Game Market Actual Sales Revenue | approx RMB 35.40 billion | approx 4.86% | | Web Game Market Actual Sales Revenue | approx RMB 2.20 billion | approx -5.87% | | Mini-Program Mobile Game Actual Sales Revenue | approx RMB 23.28 billion | 40.2% | | Overseas Actual Sales Revenue of China's Self-Developed Games | approx USD 9.50 billion | 11.07% | - Market revenue and user scale grew simultaneously, primarily driven by outstanding new game performance, robust operation of evergreen games, and strong growth in esports and mini-program games[15][16] - Strategy and role-playing games accounted for the highest proportion among self-developed mobile games exported from China[15][16] Business Review in the First Half of 2025 In the first half of 2025, the Group focused on core businesses, with online game revenue increasing by 30.7% to approximately RMB 176 million, of which mobile games accounted for 79% 2025 H1 Online Game Revenue Composition | Metric | 2025 H1 (RMB) | 2024 H1 (RMB) | Year-on-year growth rate | | :--- | :--- | :--- | :--- | | Online Game Revenue | approx 176 million | approx 135 million | 30.7% | | Mobile Game Revenue Share | 79% | - | - | | Web Game Revenue Share | 21% | - | - | - Self-developed mobile game "DDTank" saw its cumulative revenue increase by 15.2% in the first half of 2025[21][23] - The exclusively operated mini-program game "I Am MT" has been launched on multiple platforms and continues to generate revenue[21][23] - The "Myth War H5" project successfully expanded to Hong Kong, Macau, Taiwan, and Southeast Asia after its launch in Europe and America, contributing incremental revenue[22][23] - The company has successfully integrated artificial intelligence into multiple business lines, enhancing R&D efficiency and product quality[25][26] Outlook for the Second Half of 2025 The Group will continue its "IP-driven," "premiumization," and "globalization" strategies in the second half of 2025, deepening R&D investment in casual competitive and MMORPG genres, and exploring niche overseas markets - The Group will continue to adhere to the "IP-driven," "premiumization," and "globalization" development strategies, strengthening long-term operations and global publishing capabilities[27][32] - Multiple projects under the classic IPs "DDTank" and "Myth War" have completed content development and market preparation, and will actively participate in the "summer season" competition[28][32] - Overseas publishing will explore market opportunities in Turkey and extend to the Middle East region[29][33] - The first "DDTank" IP cross-platform classic version is under development, with basic R&D expected to be completed within 2025[30][34] - "I Am MT" 3D mini-program project and other mini-program projects are expected to be launched in the market in the second half of 2025[31][34] Financial Review This section reviews the company's financial performance in the first half of 2025, including operational data, income statement items, liquidity, borrowings, capital expenditures, and risk management, showing a turnaround to profit Operational Information In the first half of 2025, the company's online game revenue primarily came from popular titles such as "DDTank" series, "Myth War" series, "I Am MT," and "Bloodline," with ARPPU for both web and mobile games increasing - In the first half of 2025, the Group's online game revenue primarily came from well-known games such as the "DDTank" series, "Myth War" series, "I Am MT," and "Bloodline"[39][42] 2025 H1 Key Operational Performance Indicators | Metric | Web Games | Mobile Games | | :--- | :--- | :--- | | Average Monthly Active Users (MAUs) | approx 0.64 million | approx 0.55 million | | Average Monthly Paying Users (MPUs) | approx 24,200 | approx 47,400 | | Average Revenue Per Paying User (ARPPU) | approx RMB 626 (year-on-year increase of 19.2%) | approx RMB 620 (year-on-year increase of 15.9%) | Comparison of Statement of Profit or Loss In the first half of 2025, the company's continuing operations generated revenue of RMB 176.4 million, a 26.5% increase year-on-year, achieving a profit of RMB 26.1 million for the period 2025 H1 Key Data from Statement of Profit or Loss for Continuing Operations | Metric | 2025 H1 (RMB thousands) | 2024 H1 (RMB thousands) | Year-on-year change rate | | :--- | :--- | :--- | :--- | | Revenue | 176,387 | 139,389 | +26.5% | | Cost of Revenue | (53,748) | (35,856) | +49.9% | | Gross Profit | 122,639 | 103,533 | +18.5% | | Research and Development Expenses | (33,074) | (70,690) | -53.2% | | Selling and Marketing Expenses | (24,690) | (38,023) | -35.1% | | Administrative Expenses | (29,811) | (21,322) | +39.8% | | Operating Profit/(Loss) | 32,419 | (4,789) | Turned from loss to profit | | Profit/(Loss) Before Income Tax | 31,579 | (6,911) | Turned from loss to profit | | Income Tax Expense | (5,480) | (335) | +1535.8% | | Profit/(Loss) for the Period | 26,099 | (5,971) | Turned from loss to profit | | Profit/(Loss) for the Period Attributable to Owners of the Company | 27,129 | (7,814) | Turned from loss to profit | - Gross profit margin decreased from 74.3% in the first half of 2024 to 69.5% in the first half of 2025, primarily because the growth rate of cost of revenue exceeded that of revenue[51][55] - Research and development expenses decreased by 53.2%, mainly due to enhanced R&D expense management and reduced staff remuneration and other R&D expenses[52][56] - Selling and marketing expenses decreased by 35.1%, primarily due to reduced marketing and promotional expenses for game operations and distribution[53][57] - Administrative expenses increased by 39.8%, mainly due to higher other professional service fees[58][62] Liquidity and Financial Resources As of June 30, 2025, cash and cash equivalents increased to approximately RMB 100 million, up 64.9% year-on-year, driven by net cash inflow from operating activities, while capital expenditure significantly decreased Key Data for Liquidity and Financial Resources | Metric | 2025-06-30 (RMB millions) | 2024-12-31 (RMB millions) | Change Rate | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 100.0 | 60.7 | +64.9% | | Total Borrowings | 15.0 | 15.0 | 0% | | Gearing Ratio | 7.7% | 6.9% | +0.8% | | Total Capital Expenditure (H1) | 0.6 | 16.3 | -96.5% | - The company has no policy to hedge against foreign exchange fluctuation risks[74][79] - As of June 30, 2025, the company pledged property, plant and equipment of approximately RMB 7.227 million and right-of-use assets of approximately RMB 32.234 million for borrowings of RMB 15 million[75][80] - As of the date of this interim report, the company has no other significant future plans for investments or capital assets[78][82] Significant Investments Held The company holds significant investments in Shanghai Chaosilicon, Ningbo Lianjun, and Nanjing Linghang; the investment in Shanghai Chaosilicon was sold in July 2025, expected to yield a gain of approximately RMB 2 million Fair Value and Proportion of Significant Investments (June 30, 2025) | Investment Project | Fair Value (RMB millions) | % of Total Assets | Accumulated Unrealized Fair Value Gain (RMB millions) | | :--- | :--- | :--- | :--- | | Shanghai Chaosilicon | 394.0 | approx 21.4% | 14.0 | | Ningbo Lianjun | 116.3 | approx 6.3% | 11.3 | | Nanjing Linghang | 122.3 | approx 6.6% | 0 | - The investment in Shanghai Chaosilicon was completed on July 16, 2025, with an expected disposal gain of approximately RMB 2 million for 2025, totaling approximately RMB 14 million in gains compared to the original investment cost[85][88] - Ningbo Lianjun's investment focuses on integrated circuits and their upstream and downstream enterprises[91][96] - Nanjing Linghang operates a smart mobility platform[93][97] Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[95][98] Employees and Remuneration Policies As of June 30, 2025, the company had 209 full-time employees, with R&D personnel accounting for 70%, and total employee remuneration for the first half of the year was approximately RMB 45.8 million Number of Employees by Function as of June 30, 2025 | Function | Number of Employees | Percentage of Total | | :--- | :--- | :--- | | R&D | 146 | 70% | | Operations | 28 | 13% | | Administration | 35 | 17% | | Total | 209 | 100% | - For the six months ended June 30, 2025, total employee remuneration was approximately RMB 45.8 million[101][104] - The company determines remuneration based on employee performance, experience, capabilities, and market conditions, and provides targeted training[102][104] Other Information This section covers other important information including legal proceedings, subsequent events, directors' and substantial shareholders' interests, RSU scheme, share capital changes, securities dealings, dividend policy, corporate governance, director information changes, compliance with laws and regulations, and audit committee work Material Legal Proceedings The "DDTank" intellectual property contract dispute lawsuit filed by Qianhai Huanjing in April 2021 is currently under retrial and is not expected to affect the Group's normal business operations - The "DDTank" intellectual property contract dispute lawsuit filed by Qianhai Huanjing in April 2021, with a claim amount of approximately RMB 60.2 million, is currently under retrial at the Shenzhen Intermediate People's Court[105][108] - This lawsuit is not expected to affect the Group's normal business operations[105][108] Significant Subsequent Events After June 30, 2025, the company completed the disposal of its equity interest in the Shanghai Chaosilicon related partnership on July 16, 2025 - The Group completed the disposal of its equity interest in the related partnership on July 16, 2025[107][110] Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures As of June 30, 2025, Mr. Meng Shuqi held 19.20% of the company's shares through controlled corporations and beneficially owned 21.50% of Shenzhen 7Road's registered capital Directors' Interests in the Company (June 30, 2025) | Name of Director | Capacity/Nature of Interest | Number of Shares or Underlying Shares Held | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Meng Shuqi | Interest in controlled corporation | 528,854,000 | 19.20% | Directors' Interests in Other Group Companies (June 30, 2025) | Name of Director | Name of Other Group Company | Capacity/Nature of Interest | Approximate Percentage of Registered Capital | | :--- | :--- | :--- | :--- | | Mr. Meng Shuqi | Shenzhen 7Road | Beneficial owner | 21.50% | Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares As of June 30, 2025, several entities and individuals, including Baohu Holdings Limited and its associates, held over 5% equity interests in the company Interests of Substantial Shareholders and Other Persons in Shares (June 30, 2025) | Name/Designation | Capacity/Nature of Interest | Number of Shares or Underlying Shares Held | Approximate Percentage of Interest | | :--- | :--- | :--- | :--- | | Baohu Holdings Limited | Beneficial owner | 352,714,000 | 12.81% | | Shanghai Bao Hu Investment Management Center (Limited Partnership) | Interest in controlled corporation | 352,714,000 | 12.81% | | Shanghai Bao Pu Investment Management Co., Ltd. | Interest in controlled corporation | 353,586,000 | 12.84% | | Ningbo Hao Chu Enterprise Management Consulting Co., Ltd. | Interest in controlled corporation | 353,586,000 | 12.84% | | Mr. Yan Zurong | Interest in controlled corporation | 353,586,000 | 12.84% | | Shengqu Technology Korean Limited | Beneficial owner | 51,902,000 | 1.89% | | Shengqu Technology Korean Limited | Interest in controlled corporation | 88,764,000 | 3.22% | | Zhejiang Century Huatong Group Co., Ltd. | Interest in controlled corporation | 274,366,000 | 9.97% | | Shangyulongcheng Holdings Limited | Beneficial owner | 174,410,000 | 6.33% | | Shaoxing Shang Yu Long Cheng Capital Investment Fund (Limited Partnership) | Interest in controlled corporation | 174,410,000 | 6.33% | | Zhejiang Long Xin Equity Investment Management Co., Ltd. | Interest in controlled corporation | 174,410,000 | 6.33% | | Wolong Holding Group Co., Ltd. | Interest in controlled corporation | 174,410,000 | 6.33% | | Mr. Chen Jiancheng | Interest in controlled corporation | 174,410,000 | 6.33% | | Ms. Chen Yanni | Interest in controlled corporation | 174,410,000 | 6.33% | | Ben 7Road Holdings Limited | Beneficial owner | 429,922,000 | 15.62% | | Ben 7Road Holdings Limited | Interest in controlled corporation | 98,932,000 | 3.59% | | World 7Road Holdings Limited | Beneficial owner | 331,130,000 | 12.03% | | World 7Road Holdings Limited | Interest in controlled corporation | 80,000,000 | 2.91% | | Mr. Hu Min | Interest in controlled corporation | 411,130,000 | 14.93% | | Songshuxing Holdings Limited | Beneficial owner | 189,936,000 | 6.90% | | Mr. Song Shuxing | Interest in controlled corporation | 189,936,000 | 6.90% | Restricted Share Unit Scheme The company adopted an RSU scheme on March 6, 2018, to incentivize employees; as of June 30, 2025, RSU trustees held 178,932,000 shares for the scheme, with no RSU grants or vesting during the period - The RSU scheme aims to incentivize directors, senior management, and employees, attracting, motivating, and retaining talent[127][131] - As of June 30, 2025, RSU trustees held 178,932,000 shares for the RSU scheme[134][136] - For the six months ended June 30, 2025, no restricted share units were granted, vested, expired, lapsed, cancelled, or remained unvested[139][141] - The remaining term of the RSU scheme is approximately two years and eight months[138][141] Movements in Share Capital For the six months ended June 30, 2025, there were no movements in the company's share capital - For the six months ended June 30, 2025, there were no movements in the company's share capital[144][152] Purchase, Sale or Redemption of Listed Securities For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any shares, and the company held no treasury shares - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any shares (including treasury shares)[145][153] - As of June 30, 2025, the company held no treasury shares[146][153] Interim Dividend The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[147][154] Compliance with the Corporate Governance Code For the six months ended June 30, 2025, the company complied with all applicable code provisions of the Corporate Governance Code - For the six months ended June 30, 2025, the company complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 Part 2 of the Listing Rules[148][155] Model Code for Securities Transactions by Directors The company adopted the Model Code for Securities Transactions by Directors as its code of conduct, and all directors confirmed compliance for the period - The company adopted the Model Code as set out in Appendix C3 of the Listing Rules as its own code of conduct for securities transactions by directors and relevant employees[149][156] - All directors confirmed compliance with the Model Code for the six months ended June 30, 2025[150][156] Sufficiency of Public Float As of the date of this interim report, the company maintained the public float as required by the Listing Rules - As of the date of this interim report, the company maintained the public float as required by the Listing Rules[157][162] Changes in Directors' and Chief Executive's Information Mr. Li Zhengquan resigned as executive director, CFO, and joint company secretary, while Mr. Liu Zhizhen and Mr. Yang Cheng were appointed to executive director and CFO/joint company secretary roles, respectively, effective January 26, 2025 - Mr. Li Zhengquan resigned as executive director, chief financial officer, and joint company secretary on January 26, 2025[158][163] - Mr. Liu Zhizhen was appointed as an executive director on January 26, 2025[158][163] - Mr. Yang Cheng was appointed as chief financial officer and joint company secretary on January 26, 2025[159][163] Compliance with Laws and Regulations For the six months ended June 30, 2025, and up to the date of this interim report, the company complied with relevant laws and regulations materially affecting it - For the six months ended June 30, 2025, and up to the date of this interim report, the Group complied with relevant laws and regulations materially affecting the company[160][164] Audit Committee The Audit Committee, comprising three independent non-executive directors with Mr. Xue Jun as chairman, has been established in accordance with the Corporate Governance Code - The Audit Committee comprises three independent non-executive directors: Mr. Xue Jun (Chairman), Ms. Li Yiqing, and Mr. Lu Zhihao[161][165] Review of the Interim Financial Information and the Interim Report The Audit Committee reviewed the Group's unaudited interim financial information and interim report for the six months ended June 30, 2025 - The Audit Committee reviewed the Group's unaudited interim financial information and interim report for the six months ended June 30, 2025[166][168] Publication of the Interim Report This interim report has been published on the company's website (www.7road.com) and the HKEXnews website (www.hkexnews.hk) - This interim report has been published on the company's website (www.7road.com) and the HKEXnews website (www.hkexnews.hk)[167](index=167&type=chunk)[169] Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income This statement presents the company's unaudited condensed consolidated profit or loss and other comprehensive income for the six months ended June 30, 2025, showing a significant improvement from a loss to a profit in continuing operations 2025 H1 Summary of Statement of Profit or Loss and Other Comprehensive Income | Metric | 2025 H1 (RMB thousands) | 2024 H1 (RMB thousands) | | :--- | :--- | :--- | | Revenue from Continuing Operations | 176,387 | 139,389 | | Profit/(Loss) for the Period from Continuing Operations | 26,099 | (7,246) | | Profit/(Loss) for the Period | 26,099 | (5,971) | | Profit/(Loss) for the Period Attributable to Owners of the Company | 27,129 | (7,814) | | Basic and Diluted Profit/(Loss) Per Share (RMB) | 0.011 | (0.003) | Unaudited Condensed Consolidated Statement of Financial Position This statement provides the company's unaudited condensed consolidated financial position as of June 30, 2025, indicating a slight increase in total assets, stable net current assets, and growth in total equity 2025 H1 Summary of Statement of Financial Position | Metric | 2025-06-30 (RMB thousands) | 2024-12-31 (RMB thousands) | | :--- | :--- | :--- | | Non-current Assets | 1,575,811 | 1,547,385 | | Current Assets | 269,422 | 257,234 | | Current Liabilities | 122,994 | 113,783 | | Non-current Liabilities | 18,376 | 11,225 | | Net Assets | 1,703,863 | 1,679,611 | | Total Equity Attributable to Owners of the Company | 1,703,863 | 1,678,077 | | Cash and Cash Equivalents | 100,008 | 60,653 | Unaudited Condensed Consolidated Statement of Changes in Equity This statement presents the company's unaudited condensed consolidated statement of changes in equity for the six months ended June 30, 2025, showing an increase in total equity attributable to owners of the company, primarily due to total comprehensive income for the period 2025 H1 Summary of Changes in Equity | Metric | 2025-06-30 (RMB thousands) | 2024-06-30 (RMB thousands) | | :--- | :--- | :--- | | Total Equity Attributable to Owners of the Company | 1,703,863 | 1,743,846 | | Total Comprehensive Income/(Expense) for the Period | 24,756 | (6,224) | | Retained Earnings | 587,351 | 625,861 | - Non-controlling interests decreased to zero in the first half of 2025, partly due to the acquisition of non-controlling interests without a change in control[178] Interim Condensed Consolidated Statement of Cash Flows This statement summarizes the company's cash flows for the six months ended June 30, 2025, showing increased net cash from operating activities, net cash outflow from investing activities, reduced net cash outflow from financing activities, and a significant increase in cash and cash equivalents 2025 H1 Summary of Cash Flow Statement | Type of Cash Flow | 2025 H1 (RMB thousands) | 2024 H1 (RMB thousands) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 47,897 | 41,419 | | Net Cash (Used in)/from Investing Activities | (3,823) | 49,931 | | Net Cash Used in Financing Activities | (3,353) | (88,699) | | Net Increase in Cash and Cash Equivalents | 40,721 | 2,651 | | Cash and Cash Equivalents at End of Period | 100,008 | 50,206 | - Cash outflow from investing activities primarily included payments for the purchase of other financial assets at fair value through profit or loss (RMB 38 million) and payments for the acquisition of property, plant and equipment (RMB 0.57 million)[179] - Net cash used in financing activities significantly decreased, mainly due to large repayments of bank and other borrowings and lease liabilities in the same period of 2024[179] Notes to the Unaudited Condensed Consolidated Financial Statements This section provides detailed notes to the unaudited condensed consolidated financial statements, covering general information, basis of preparation, adoption of new accounting standards, fair value measurements, segment information, and other financial details 1. General Information The company was incorporated in the Cayman Islands on September 6, 2017, primarily engaged in the development and publishing of web and mobile games in China and other countries, with its unaudited condensed consolidated financial statements presented in RMB - The company was incorporated in the Cayman Islands on September 6, 2017, primarily engaged in the development and publishing of web and mobile games[180][181][184] - The unaudited condensed consolidated financial statements are presented in RMB and were approved for publication by the Board of Directors on August 28, 2025[181][184] 2. Basis of Preparation The unaudited condensed consolidated financial statements are prepared in accordance with IAS 34 "Interim Financial Reporting" and applicable disclosure requirements of the Listing Rules, consistent with the accounting policies used for the 2024 annual financial statements - The financial statements are prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of the Listing Rules[182][185] - The accounting policies and methods of computation used are consistent with those applied in the annual financial statements for the year ended December 31, 2024[183][185] 3. Adoption of New and Revised IFRS Accounting Standards The company adopted all business-relevant new and revised IFRS accounting standards effective January 1, 2025, with no significant changes to accounting policies or financial statement presentation, and is evaluating the impact of new standards not yet effective - All business-relevant new and revised IFRS accounting standards effective January 1, 2025, have been adopted for the current period[187][190] - The adoption of these new standards did not result in significant changes to accounting policies, financial statement presentation, or reported amounts[187][190] - The company has commenced assessing the impact of new and revised IFRS accounting standards not yet effective[188][190] 4. Fair Value Measurements This section discloses the fair value measurements of the company's financial assets, including those at fair value through profit or loss, categorized by fair value hierarchy (Level 1, Level 2, Level 3), with most being Level 3 measurements Disclosures of Level in Fair Value Hierarchy As of June 30, 2025, the total financial assets at fair value through profit or loss amounted to RMB 863.7 million, with the majority being Level 3 measurements, including unlisted equity investments and unlisted limited partnerships in China Fair Value Measurement Hierarchy as of June 30, 2025 | Description | Level 1 (RMB thousands) | Level 2 (RMB thousands) | Level 3 (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong listed equity securities | 22,326 | — | — | 22,326 | | China unlisted equity investments | — | — | 298,848 | 298,848 | | China unlisted limited partnerships | — | — | 542,553 | 542,553 | | Total recurring fair value measurements | 22,326 | — | 841,401 | 863,727 | Movement of Financial Assets at Fair Value Through Profit or Loss for the Period As of June 30, 2025, total financial assets at fair value through profit or loss increased to RMB 863.7 million, with new investments of RMB 38 million and a net gain or loss of RMB -53 thousand recognized during the period 2025 H1 Movement of Financial Assets at Fair Value Through Profit or Loss | Movement Item | Hong Kong listed shares (RMB thousands) | China unlisted equity investments (RMB thousands) | China unlisted limited partnerships (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | As at January 1, 2025 | 18,603 | 263,693 | 545,757 | 828,053 | | Additions | — | 38,000 | — | 38,000 | | Disposals | — | — | (2,166) | (2,166) | | Total gains or losses recognized in profit or loss | 3,830 | (2,845) | (1,038) | (53) | | Exchange adjustments | (107) | — | — | (107) | | As at June 30, 2025 | 22,326 | 298,848 | 542,553 | 863,727 | - There were no transfers between Level 1, Level 2, and Level 3 during the period[197] Disclosure of Valuation Process Used by the Group and Valuation Techniques and Inputs Used in Fair Value Measurements The company's CFO is responsible for fair value measurements, reporting directly to the Board, and the team uses valuation techniques at least twice a year for Level 3 measurements, engaging external experts when necessary - The Chief Financial Officer is responsible for fair value measurements, reporting directly to the Board, and discusses valuation processes and results with the Board at least twice a year[198][200] - For Level 3 fair value measurements, the company's team uses valuation techniques to determine fair value at least twice a year, engaging external valuation experts when necessary[199][200] 2025 H1 Level 3 Fair Value Measurement Valuation Techniques and Inputs | Description | Valuation Technique | Unobservable Input | Range | Impact of an increase in the input on fair value | | :--- | :--- | :--- | :--- | :--- | | Unlisted equity securities | Recent market transactions | Not applicable | Not applicable | Not applicable | | Unlisted equity securities | Market approach | Volatility | 43.24%–54.11% | Decrease | | | | Risk-free rate | 1.38%–1.47% | Decrease | | Unlisted limited partnerships, trusts and funds | Adjusted net asset value | Discount for lack of marketability | 9.00%–12.90% | Decrease | 5. Segment Information and Revenue The company operates and manages as a single segment, thus no segment information is presented; total revenue from continuing operations for the six months ended June 30, 2025, was RMB 176.4 million, a 26.5% increase, primarily from online games - The company primarily operates and manages as a single segment, therefore no segment information is presented[211][213] 2025 H1 Revenue Details from Continuing Operations | Type of Goods or Services | 2025 H1 (RMB thousands) | 2024 H1 (RMB thousands) | | :--- | :--- | :--- | | Online Game Revenue | 176,387 | 134,941 | | — Self-developed games published by the Group | 92,733 | 77,734 | | — Self-developed games published by other publishers | 46,322 | 39,035 | | — Agency games published by the Group | 31,623 | 18,172 | | — Agency games published by other publishers | 5,709 | — | | Intellectual property licensing | — | 3,553 | | Cloud-related services | — | 895 | | Total | 176,387 | 139,389 | - In the first half of 2025, revenue from the top five single external customers was approximately RMB 56.659 million[215][218] - Revenue from one single external customer was approximately RMB 18.766 million, accounting for over 10% of total revenue[216][218] 6. Other Income For the six months ended June 30, 2025, other income from continuing operations was RMB 1.379 million, a significant decrease from RMB 13.545 million in the prior year, mainly due to reduced government grants and other income 2025 H1 Other Income Details | Income Type | 2025 H1 (RMB thousands) | 2024 H1 (RMB thousands) | | :--- | :--- | :--- | | Government grants | 760 | 2,528 | | Refund of China VAT | 581 | 444 | | Others | 38 | 10,573 | | Total | 1,379 | 13,545 | - Other income significantly decreased year-on-year, mainly affected by a reduction in other income items (from RMB 10.573 million to RMB 0.038 million) and government grants (from RMB 2.528 million to RMB 0.76 million)[220] 7. Other Gains or Losses, Net For the six months ended June 30, 2025, other gains or losses from continuing operations resulted in a net loss of RMB 0.292 million, compared to a net gain of RMB 23.011 million in the prior year, primarily due to changes in fair value of financial assets at fair value through profit or loss 2025 H1 Other Gains or Losses, Net Details | Item | 2025 H1 (RMB thousands) | 2024 H1 (RMB thousands) | | :--- | :--- | :--- | | Fair value changes of financial assets at fair value through profit or loss | (53) | 21,225 | | (Loss)/gain on disposal of property, plant and equipment and right-of-use assets | (235) | 311 | | Gain on disposal of a subsidiary | 120 | — | | Net foreign exchange (loss)/gain | (36) | 394 | | Others | (88) | 1,081 | | Total | (292) | 23,011 | - Other gains or losses, net, turned from a gain of RMB 21.225 million in the first half of 2024 to a loss of RMB 0.053 million in the first half of 2025, which was the main reason for the overall shift from profit to loss[221] 8. Finance Costs, Net For the six months ended June 30, 2025, net finance costs from continuing operations decreased to RMB 0.695 million from RMB 0.944 million in the prior year, mainly due to reduced interest expenses on bank and other borrowings 2025 H1 Finance Costs, Net Details | Item | 2025 H1 (RMB thousands) | 2024 H1 (RMB thousands) | | :--- | :--- | :--- | | Finance income | 805 | 198 | | — Interest income from bank balances | 697 | 72 | | — Others | 108 | 126 | | Finance costs | (1,500) | (1,142) | | — Interest expense on bank and other borrowings | (234) | (578) | | — Interest expense on lease liabilities | (596) | (252) | | — Others | (670) | (312) | | Finance costs, net | (695) | (944) | - Net finance costs decreased primarily due to a reduction in interest expense on bank and other borrowings from RMB 0.578 million to RMB 0.234 million[223] 9. Income Tax Expense For the six months ended June 30, 2025, income tax expense significantly increased to RMB 5.48 million, primarily due to higher profit before tax, with applicable income tax rates ranging from 8.25% to 25% 2025 H1 Income Tax Expense Details | Item | 2025 H1 (RMB thousands) | 2024 H1 (RMB thousands) | | :--- | :--- | :--- |