飞鱼科技(01022) - 2025 - 中期财报

Company Information This section provides essential information about Feiyu Technology International Limited, covering its governance structure, key personnel, legal and audit advisors, registered offices, and share details Board of Directors The Board of Directors comprises executive directors Yao Jianjun (Chairman and CEO), Chen Jianyu (President), Bi Lin (Vice President), Lin Zhibin (Vice President), and independent non-executive directors Liu Qianli, Lai Xiaoling, and Cao Xi - Executive directors include Yao Jianjun (Chairman and CEO), Chen Jianyu (President), Bi Lin (Vice President), and Lin Zhibin (Vice President)[6] - Independent non-executive directors include Liu Qianli, Lai Xiaoling, and Cao Xi[6] Audit Committee The Audit Committee consists of Liu Qianli (Chairperson), Lai Xiaoling, and Cao Xi - The Audit Committee Chairperson is Ms Liu Qianli[6] Remuneration Committee The Remuneration Committee comprises Liu Qianli (Chairperson), Bi Lin, and Lai Xiaoling - The Remuneration Committee Chairperson is Ms Liu Qianli[6] Nomination Committee The Nomination Committee is composed of Yao Jianjun (Chairman), Liu Qianli, and Cao Xi - The Nomination Committee Chairman is Mr Yao Jianjun[6] Legal Advisors and Auditor The Hong Kong legal advisor is Deacons, the Cayman Islands legal advisor is Conyers Dill & Pearman (Cayman) Limited, and the auditor is Ernst & Young - Hong Kong Legal Advisor: Deacons[7] - Cayman Islands Legal Advisor: Conyers Dill & Pearman (Cayman) Limited[7] - Auditor: Ernst & Young[7] Registered Office and Company Headquarters The company's registered office is in the Cayman Islands, its headquarters are in Xiamen, Fujian Province, China, and its principal place of business in Hong Kong is at United Centre - The registered office is located at Cricket Square, Cayman Islands[8] - The company headquarters are located at Building A, Feiyu Building, No 78 Hu'an Road, Huli District, Xiamen, Fujian Province, China[8] - The principal place of business in Hong Kong is located at Unit B, 17th Floor, United Centre, 95 Queensway, Admiralty, Hong Kong[8] Share Information The company's stock code is 1022, and it was listed on the Main Board of The Stock Exchange of Hong Kong Limited on December 5, 2014 - Stock Code: 1022[9] - Listing Date: December 5, 2014[9] Financial Highlights Feiyu Technology's revenue for H1 2025 significantly increased by 343.6% year-on-year to RMB451.4 million, gross profit grew by 400.5% to RMB428.3 million, and the company achieved a turnaround to a profit attributable to owners of the parent of RMB57.5 million, with total assets and total equity also increasing 2025 H1 Key Financial Data (RMB thousand) | Indicator | 2025 H1 | 2024 H1 | Change % | | :--- | :--- | :--- | :--- | | Revenue | 451,353 | 101,752 | 343.6 | | Gross Profit | 428,324 | 85,587 | 400.5 | | Profit/(Loss) Before Tax | 57,706 | (1,635) | Not Applicable | | Profit/(Loss) for the Period Attributable to Owners of the Parent | 57,520 | (1,586) | Not Applicable | | Basic and Diluted Earnings/(Loss) Per Share Attributable to Ordinary Equity Holders of the Parent | RMB0.03 | RMB0.00 | | | Non-current Assets | 523,948 | 501,355 | 4.5 | | Current Assets | 193,873 | 178,727 | 8.5 | | Total Assets | 717,821 | 680,082 | 5.5 | | Total Equity | 537,758 | 482,580 | 11.4 | | Non-current Liabilities | 88,646 | 89,733 | (1.2) | | Current Liabilities | 91,417 | 107,769 | (15.2) | | Total Liabilities | 180,063 | 197,502 | (8.8) | | Total Equity and Liabilities | 717,821 | 680,082 | 5.5 | Management Discussion and Analysis This section details Feiyu Technology's business performance, financial position, and future outlook for H1 2025, highlighting significant revenue growth driven by HTML5 games, strategic focus on IP and global market diversification, and a turnaround to profitability despite increased sales and distribution expenses Business Review and Outlook Feiyu Technology successfully executed its HTML5 game strategy in H1 2025, achieving a 343.6% year-on-year revenue increase and a return to profitability, with plans to further develop HTML5 games and expand into overseas markets in H2 through new titles, IP sequels, and global market expansion Overview In H1 2025, the company continued its strategy, demonstrating strong growth in the HTML5 game sector with an increase in new game approvals, despite weak consumer confidence and heightened competition, leading to significant revenue growth and a return to profitability driven by the excellent performance of its HTML5 game "One Step, Two Steps" - The operating environment was mixed, with weak consumer confidence and increased competition from live streaming platforms and short video applications[13] - A more relaxed regulatory environment and an increase in approved new games brought new growth opportunities to the industry[13] - The HTML5 game sector has shown strong growth in recent years, attracting increased investment from developers and publishers[13] - The company's HTML5 game strategy, initiated in 2023, achieved remarkable results during the period[14] 2025 Outlook The company plans to continue investing in HTML5 games, focusing on light casual themes with long-term retention potential and a robust project pipeline, while further developing "One Step, Two Steps" for overseas promotion starting in Southeast Asia, establishing an overseas publishing center, and launching limited edition merchandise for the "Carrot Fantasy" IP - The company will continue to invest in HTML5 games, focusing on light casual themes with long-term retention potential[17] - "Carrot Fantasy 4" is a cornerstone of the platform expansion strategy, transitioning to an instant-play format to leverage the traffic advantages of super application ecosystems[17] - Further development of "One Step, Two Steps" will extend its lifespan, with overseas promotion commencing in the Southeast Asian market[17] - The company will continue to build its overseas publishing center, recruit professionals, expand local business networks, and localize its best-performing HTML5 games[17] - In H2 2025, limited edition A-Bo figurines and exquisite golden carrot collectible figurine series will be launched to celebrate the 13th anniversary of the "Carrot Fantasy" series[18] - Revenue for H1 2025 reached RMB451.4 million, a year-on-year increase of 343.6%, primarily driven by the HTML5 game "One Step, Two Steps"[14] - Profit attributable to owners of the parent was RMB57.5 million, a significant turnaround from a loss of RMB1.6 million in the same period last year[14] - The HTML5 version of "Beast Transformation Three Kingdoms" was launched, quickly entering the top fifty best-selling WeChat mini-games[15] - "Neon Abyss 2," a sequel to the classic dungeon-crawling action game, debuted on Steam in July 2025, ranking 3rd on Steam China's hot-selling products list on its release day[15] - "Cat in Town" was launched on Meta's virtual reality platform, marking the company's entry into the emerging VR gaming sector[16] - A co-branding campaign with Yihetang for "Carrot Fantasy" was launched, introducing limited edition figurines and 36 new lifestyle products[16] Interim Dividend The Board did not declare an interim dividend for the six months ended June 30, 2025, consistent with the prior year - The Board did not declare an interim dividend for the six months ended June 30, 2025 (2024: nil)[19] Financial Review This section provides a detailed review of the company's financial performance for H1 2025, including game operation revenue, expenses, and profit changes, highlighting the success of the HTML5 game "One Step, Two Steps" as the main driver for significant revenue growth and a return to profitability, alongside a notable increase in sales and distribution expenses due to HTML5 game promotion, and a stable financial position with improved total equity and net current assets Operating Data In H1 2025, the company continued to operate well-known IPs like "Carrot Fantasy" and "Immortal Way," while heavily investing in HTML5 game R&D and publishing, with "One Step, Two Steps" performing exceptionally, and assessed its operational performance using key metrics such as MAU, MPU, and ARPPU, showing significant growth in HTML5 game MPU and ARPPU, despite a decline in MPU for some traditional games - The company continued to operate well-known IPs such as "Carrot Fantasy" and "Immortal Way," and invested in HTML5 game R&D and publishing[20] - The HTML5 game "One Step, Two Steps" entered its monetization cycle in H1 2025, contributing excellent revenue[20][21] - The virtual reality game "Cat in Town" and the HTML5 game "Beast Transformation Three Kingdoms" were launched, with the latter ranking among the top fifty best-selling WeChat mini-games[20] Game Operation Revenue Breakdown (RMB thousand) | Game Category | 2025 H1 | % of Total Revenue | 2024 H1 | % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Online Games | 5,158 | 1.1 | 5,414 | 5.3 | | Mobile Games - RPG | 47,125 | 10.4 | 37,755 | 37.1 | | Mobile Games - Casual Games | 39,684 | 8.8 | 38,458 | 37.8 | | PC Games | 525 | 0.1 | 960 | 1.0 | | HTML5 Games | 334,879 | 74.2 | 387 | 0.4 | | Console Games | 366 | 0.1 | 338 | 0.3 | | Total | 427,737 | 94.8 | 83,312 | 81.9 | - Game operation revenue significantly increased by approximately 413.4% year-on-year to RMB427.7 million, primarily driven by "One Step, Two Steps"[21] Average MPU and ARPPU (2025 H1 vs 2024 H1) | Indicator | 2025 H1 | 2024 H1 | Change % | | :--- | :--- | :--- | :--- | | Average MPU (thousands) | | | | | Online Games (RPG) | 4 | 5 | (20.0) | | Mobile Games (RPG) | 39 | 60 | (35.0) | | Casual Games | 148 | 155 | (4.5) | | HTML5 | 167 | – | Not Applicable | | ARPPU (RMB) | | | | | Online Games (RPG) | 208.3 | 179.3 | 16.2 | | Mobile Games (RPG) | 200.9 | 104.9 | 91.5 | | Casual Games | 45.0 | 41.3 | 9.1 | | HTML5 | 334.3 | – | Not Applicable | - The average MPU for HTML5 games was approximately 167,000, and ARPPU was approximately RMB334.3, primarily driven by "One Step, Two Steps" and other HTML5 games[24][25] - The average MPU for online games and mobile RPGs decreased, and casual game MPU slightly declined, but ARPPU for all categories increased[24][25] Comparison of H1 2025 vs H1 2024 In H1 2025, the company's revenue grew by 343.6% year-on-year to RMB451.4 million, primarily driven by the HTML5 game "One Step, Two Steps," with gross profit significantly increasing by 400.5% and gross margin rising to 94.9%, while sales and distribution expenses surged by 768.3% due to HTML5 game promotion, resulting in a successful turnaround to a profit of RMB56.5 million for the period Comparison of Key Income Statement Items (RMB thousand) | Indicator | 2025 H1 | 2024 H1 | Change % | | :--- | :--- | :--- | :--- | | Revenue | 451,353 | 101,752 | 343.6 | | Cost of Sales | (23,029) | (16,165) | 42.5 | | Gross Profit | 428,324 | 85,587 | 400.5 | | Other Income and Gains | 7,851 | 8,597 | (8.7) | | Selling and Distribution Expenses | (314,420) | (36,213) | 768.3 | | Administrative Expenses | (21,913) | (19,711) | 11.2 | | Research and Development Costs | (32,435) | (27,152) | 19.5 | | Finance Costs | (1,790) | (2,153) | (16.9) | | Other Expenses | (7,925) | (13,212) | (40.0) | | Share of Profits/(Losses) of Associates | 14 | 2,622 | (99.5) | | Profit/(Loss) Before Tax | 57,706 | (1,635) | Not Applicable | | Income Tax Expense | (1,164) | (329) | 253.8 | | Profit/(Loss) for the Period | 56,542 | (1,964) | Not Applicable | | Profit/(Loss) Attributable to Owners of the Parent | 57,520 | (1,586) | Not Applicable | - Total revenue increased by 343.6% to RMB451.4 million year-on-year, primarily driven by the HTML5 game "One Step, Two Steps" and other HTML5 games[29][30][31] - Gross profit increased by 400.5% to RMB428.3 million, with gross margin improving from 84.1% to 94.9%[33] - Selling and distribution expenses surged by 768.3% to RMB314.4 million, mainly due to increased distribution expenses and channel fees for "One Step, Two Steps" and other HTML5 games[35] - Research and development costs increased by 19.5% to RMB32.4 million, primarily due to increased investment in HTML5 game developers[37] - Profit for the period was RMB56.5 million, a strong reversal from a loss of RMB2.0 million in the same period last year[41] Financial Position As of June 30, 2025, the company's total equity increased by 11.4% to RMB537.8 million, and net current assets grew by 44.4% to RMB102.5 million, primarily due to profit for the period and operating cash inflows; cash and cash equivalents decreased due to office purchases, but the company maintains a diversified financial investment portfolio and a sound gearing ratio - As of June 30, 2025, total equity was approximately RMB537.8 million, an increase of approximately 11.4% from December 31, 2024[42] - Net current assets were approximately RMB102.5 million, an increase of approximately 44.4% from December 31, 2024, mainly due to increased net cash inflow from operating activities driven by "One Step, Two Steps"[42] - Total cash and cash equivalents were approximately RMB79.9 million, a decrease of 20.7% from December 31, 2024, primarily due to the purchase of office units and parking spaces[43] - The gearing ratio (total liabilities divided by total assets) was 25.1%, a decrease from 29.0% as of December 31, 2024[71] - Total capital expenditure was approximately RMB1.8 million, a year-on-year increase of 484.9%, mainly for the purchase of office equipment and company vehicles[72] Liquidity and Financial Resources As of June 30, 2025, the company's total cash and cash equivalents were RMB79.9 million, a 20.7% year-on-year decrease primarily due to office unit purchases, while holding approximately RMB86.5 million in bank loans and maintaining a prudent cash and financial management policy with funds denominated in RMB, HKD, and USD Cash and Cash on Hand (RMB thousand) | Indicator | June 30, 2025 | December 31, 2024 | Change % | | :--- | :--- | :--- | :--- | | Bank and Cash on Hand | 79,859 | 100,687 | (20.7) | | Total | 79,859 | 100,687 | (20.7) | - The decrease in cash and cash equivalents was mainly due to the purchase of office units and parking spaces in Chaoyang District, Beijing, for RMB51.4 million in June 2025[43] - The company held bank loans totaling approximately RMB86.5 million, of which approximately RMB6.0 million is repayable within one year[44] - Bank loans carried an annual interest rate of approximately 3.5% and were secured by land use rights, investment properties, and buildings[44] Significant Debt Investments at FVOCI, Equity Investments Designated at FVOCI, and Financial Assets at FVTPL As of June 30, 2025, the company held approximately RMB119.3 million in financial assets, including ordinary bonds, unlisted equity investments, unlisted debt investments, and listed equity investments, with a diversified portfolio to mitigate risk and managed under effective capital and investment policies - As of June 30, 2025, the company held approximately RMB119.3 million in financial assets, including debt investments, equity investments, and financial assets[45] - The investment portfolio is diversified, with no less than 50% allocated to risk-free or capital-protected investments and up to 50% invested in low-risk products[46] Ordinary Bond Investment Performance (RMB thousand) | Ordinary Bond Name | Interest Income | Fair Value Change Gain/(Loss) | Fair Value as of June 30, 2025 | % of Total FVOCI and FVTPL Investments | | :--- | :--- | :--- | :--- | :--- | | CHINLP Medium Term Note Programme | 283 | 897 | 21,963 | 18.4% | | POLHON Guaranteed Notes | 402 | 795 | 19,735 | 16.5% | | NWDEVL Medium Term Note Programme | 566 | (3,015) | 12,057 | 10.1% | - The company remains optimistic about the future prospects of CHINLP bonds, as CLP Group maintains a stable and reliable energy supply in the Hong Kong market[50] - The company remains optimistic about the prospects of POLHON bonds, despite Poly Property's anticipated profit decline, given its solid contractual sales and cash collection rates in 2024[52] - The company closely and continuously monitors the performance of NWDEVL bonds, as New World Group faced losses due to changes in macroeconomic factors but has successfully refinanced[55][56][57] Unlisted Equity Investment Performance (RMB thousand) | Company Name | % of Equity | Fair Value Change Gain/(Loss) | Fair Value as of June 30, 2025 | % of Total FVOCI and FVTPL Investments | | :--- | :--- | :--- | :--- | :--- | | Xiamen Yiming Technology Co Ltd | 2% | (301) | 26,334 | 22.1% | | Others | – | (2,907) | 8,001 | 6.7% | - The company remains optimistic about the future performance of the China domain name service market and Yiming Technology, which has seen increases in both operating revenue and net profit[58][59] Unlisted Debt Investment Performance (RMB thousand) | Company Name | % of Equity | Fair Value Change Gain/(Loss) | Fair Value as of June 30, 2025 | % of Total FVOCI and FVTPL Investments | | :--- | :--- | :--- | :--- | :--- | | Future Capital Discovery Fund II, L.P. | 1.8797% | 331 | 27,542 | 23.1% | | Others | – | (136) | 1,617 | 1.4% | - The company believes Future Capital's business prospects are optimistic, having recorded increased income and net increase in partners' capital, primarily due to returns realized from various investments[63][64] Listed Equity Investment Performance (RMB thousand) | Company Name | % of Equity | Fair Value Change Gain | Fair Value as of June 30, 2025 | % of Total FVOCI and FVTPL Investments | | :--- | :--- | :--- | :--- | :--- | | Li Auto | – | 236 | 2,043 | 1.7% | - The company believes Li Auto's future business prospects are promising, with increases in revenue and net profit in Q1 2025, and a 15.5% year-on-year growth in vehicle deliveries[67][68] Other Significant Investments, Major Acquisitions and Disposals of Subsidiaries, Associates, and Joint Ventures, and Future Plans for Significant Investments or Capital Assets For the six months ended June 30, 2025, the company held no other significant investments, nor did it undertake major acquisitions or disposals of subsidiaries, associates, or joint ventures, with the Board continuing to seek new business development opportunities - For the six months ended June 30, 2025, no other significant investments were held, nor were there any major acquisitions or disposals of subsidiaries, associates, or joint ventures[70] - The Board has not approved plans for other significant investments or acquisitions of major capital assets or other businesses but will continue to identify new business development opportunities[70] Gearing Ratio As of June 30, 2025, the Group's gearing ratio was 25.1%, a decrease from 29.0% as of December 31, 2024 - The gearing ratio was 25.1%, a decrease from 29.0% as of December 31, 2024[71] Capital Expenditure For the six months ended June 30, 2025, total capital expenditure was approximately RMB1.8 million, a significant increase of 484.9% from RMB0.3 million in the prior period, primarily for the purchase of office equipment and company vehicles Capital Expenditure (RMB thousand) | Indicator | 2025 H1 | 2024 H1 | Change % | | :--- | :--- | :--- | :--- | | Property, Plant and Equipment | 1,819 | 311 | 484.9% | | Total | 1,819 | 311 | 484.9% | - The increase in capital expenditure was mainly attributable to increased purchases of office equipment and company vehicles[72] Pledged Assets As of June 30, 2025, bank loans of approximately RMB86.5 million were secured by land use rights, investment properties, and buildings with a total carrying value of approximately RMB234.9 million, used for operating the company's R&D center - Bank loans of approximately RMB86.5 million were secured by land use rights, investment properties, and buildings with a total carrying value of approximately RMB234.9 million[73] Contingent Liabilities and Guarantees As of June 30, 2025, the company had no unrecorded significant contingent liabilities, guarantees, or claims filed against it - As of June 30, 2025, the company had no unrecorded significant contingent liabilities, guarantees, or claims filed against it[74] Employees and Remuneration Policy As of June 30, 2025, the company had 450 full-time employees, with 57.5% engaged in development work, and its remuneration policy is based on performance, experience, and capabilities, offering bonuses, share-based payments, and retirement benefit schemes, while also providing training for professional development - As of June 30, 2025, the company had 450 full-time employees, mostly located in Xiamen, Fujian Province, China[75] Employees by Function (June 30, 2025) | Function | Number of Employees | % of Total | | :--- | :--- | :--- | | Development | 259 | 57.5 | | Operations | 111 | 24.7 | | Administration | 63 | 14.0 | | Sales and Marketing | 17 | 3.8 | | Total | 450 | 100.0 | - Remuneration packages include salaries, bonuses, allowances, equity-settled share-based payments, and state-managed retirement benefit schemes[75] - Directors' and senior management's remuneration is reviewed by the Remuneration Committee and approved by the Board, comprising salaries, bonuses, share options, restricted share units, and other benefits[75] Other Information and Corporate Governance Summary This section discloses the share interests of directors, chief executives, and substantial shareholders, outlines the company's share schemes, and confirms compliance with the Corporate Governance Code, noting that while the Chairman and CEO roles are combined, the Board deems this arrangement beneficial for business development, and also covers changes in directors' biographical details and the review of interim results Directors' and Chief Executives' Interests in Shares, Underlying Shares, and Debentures of the Company or its Associated Corporations As of June 30, 2025, directors and chief executives including Yao Jianjun, Chen Jianyu, Bi Lin, and Lin Zhibin held long positions in the company's shares through discretionary trusts and controlled corporations, with Mr Yao Jianjun holding the highest percentage at approximately 28.13% Directors' and Chief Executives' Long Positions in Shares (June 30, 2025) | Name of Director/Chief Executive | Capacity | Number of Ordinary Shares Held (Long Position) | Approximate % of Shareholding | | :--- | :--- | :--- | :--- | | Yao Jianjun | Founder of discretionary trust, interest in controlled corporation and beneficial owner | 492,115,000 | 28.13 | | Chen Jianyu | Founder of discretionary trust, interest in controlled corporation | 161,538,000 | 9.23 | | Bi Lin | Founder of discretionary trust, interest in controlled corporation | 77,470,000 | 4.43 | | Lin Zhibin | Founder of discretionary trust, interest in controlled corporation | 37,390,500 | 2.14 | - Mr Yao Jianjun's interests include 10,716,000 shares held directly and 481,399,000 shares held through YAO Holdings Limited[78] Share Schemes The Post-IPO Share Option Scheme and Restricted Share Unit Scheme II were terminated on May 24, 2024, and the 2024 Share Option Scheme and 2024 Restricted Share Unit Scheme were adopted; as of June 30, 2025, no options or awards were granted under the new schemes, but 5,800,000 Post-IPO share options remained unexercised - The Post-IPO Share Option Scheme and Restricted Share Unit Scheme II were terminated on May 24, 2024[81] - The company adopted the 2024 Share Option Scheme and the 2024 Restricted Share Unit Scheme on May 24, 2024[81] - For the six months ended June 30, 2025, no share options or awards were granted under the new or old schemes[81][166] Details of Outstanding Share Options (June 30, 2025) | Name | Grant Date | Vesting Schedule | Option Period | Exercise Price | Outstanding as of June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Ms Xu Yiqing | March 27, 2017 | 25% each year from 2017-2020 | 10 years | HKD1.256 | 3,000,000 | | Ms Wei Yulan | March 27, 2017 | 25% each year from 2017-2020 | 10 years | HKD1.256 | 600,000 | | Nine other grantees | March 27, 2017 | 25% each year from 2017-2020 | 10 years | HKD1.256 | 2,200,000 | | Total | | | | | 5,800,000 | - The maximum number of shares that can be issued under the 2024 Share Option Scheme and other share schemes is 174,944,206 shares, representing 10% of the total issued shares[84] - The 2024 Share Option Scheme is valid for 10 years, effective from May 24, 2024[86] - The maximum number of shares under the 2024 Restricted Share Unit Scheme is the same as the Share Option Scheme, and it is also valid for 10 years[88][90] Substantial Shareholders' and Other Persons' Interests in Shares and Underlying Shares As of June 30, 2025, TMF (Cayman) Ltd., as trustee of a family trust, held 46.74% of the company's equity, Mr Yao Jianjun (through trusts and controlled corporations) held 28.13%, and Tencent Holdings Limited indirectly held 14.97% through its wholly-owned subsidiary Substantial Shareholders' Long Positions in Shares (June 30, 2025) | Name of Shareholder | Capacity | Number of Ordinary Shares Held (Long Position) | Approximate % of Shareholding | | :--- | :--- | :--- | :--- | | TMF (Cayman) Ltd. | Trustee of a family trust | 817,627,500 | 46.74 | | YAO Holdings Limited | Beneficial owner | 481,399,000 | 27.52 | | Jolly Spring International Limited | Interest in controlled corporation | 481,399,000 | 27.52 | | Mr Yao Jianjun | Founder of discretionary trust, interest in controlled corporation and beneficial owner | 492,115,000 | 28.13 | | Fishchen Holdings Limited | Beneficial owner | 161,538,000 | 9.23 | | Honour Gate Limited | Interest in controlled corporation | 161,538,000 | 9.23 | | Mr Chen Jianyu | Founder of discretionary trust, interest in controlled corporation | 161,538,000 | 9.23 | | Tencent Holdings Limited | Interest in controlled corporation | 261,882,607 | 14.97 | - Tencent Holdings Limited indirectly held 261,882,607 shares through its wholly-owned subsidiary THL H Limited[99] Purchase, Sale or Redemption of the Company's Listed Securities For the six months ended June 30, 2025, neither the company, its subsidiaries, nor any PRC operating entities purchased, sold, or redeemed any of the company's listed securities - For the six months ended June 30, 2025, neither the company, its subsidiaries, nor any PRC operating entities purchased, sold, or redeemed any of the company's listed securities[95] Sufficiency of Public Float As of the date of this interim report, the company has continuously maintained a sufficient public float in accordance with the Listing Rules for the six months ended June 30, 2025, and up to the date of this interim report - The company has continuously maintained a sufficient public float in accordance with the Listing Rules for the six months ended June 30, 2025, and up to the date of this interim report[96] Compliance with Corporate Governance Code The company is committed to maintaining high standards of corporate governance and has complied with all applicable code provisions of the Corporate Governance Code; despite the Chairman and CEO roles being held by Mr Yao Jianjun, the Board believes this arrangement is beneficial for business prospects and provides sufficient checks and balances - The company has complied with all applicable code provisions under the Corporate Governance Code for the six months ended June 30, 2025[97] - The roles of Chairman and Chief Executive Officer are combined and held by Mr Yao Jianjun, an arrangement the Board believes is suitable and beneficial to the Group's business prospects, providing strong and consistent leadership[97] Board of Directors The Board of Directors currently consists of seven directors, including four executive directors and three independent non-executive directors, with no changes in Board membership for the six months ended June 30, 2025, and up to the date of this interim report - The Board of Directors currently consists of seven directors, including four executive directors and three independent non-executive directors[100] - There were no changes in the Board's membership for the six months ended June 30, 2025, and up to the date of this interim report[101] Standard Code for Securities Transactions The company has adopted the Standard Code as its code of conduct for directors' dealings in the company's securities and confirms that all Board members complied with the code for the six months ended June 30, 2025, with no instances of employee non-compliance identified - The company has adopted the Standard Code as its own code of conduct for directors' dealings in the company's securities[102] - All members of the Board complied with the Standard Code for the six months ended June 30, 2025[103] Review of Interim Results The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, and deemed them properly prepared, with the company's external auditor, Ernst & Young, also having reviewed these interim results - The Audit Committee has reviewed the Group's unaudited interim results for the six months ended June 30, 2025, and considers them to have been properly prepared in accordance with relevant accounting standards[104] - The company's external auditor, Ernst & Young, has reviewed the Group's unaudited interim results for the six months ended June 30, 2025[105] Changes in Directors' Biographical Details under Rule 13.51B(1) of the Listing Rules Effective March 25, 2025, executive director Mr Yao Jianjun ceased to be a director of Xiamen Zhangxin Network Technology Co Ltd, while executive director Mr Bi Lin assumed the role of director for the same company - Effective March 25, 2025, executive director Mr Yao Jianjun ceased to be a director of Xiamen Zhangxin Network Technology Co Ltd[106] - Effective March 25, 2025, executive director Mr Bi Lin assumed the role of director of Xiamen Zhangxin Network Technology Co Ltd[106] Independent Review Report Ernst & Young conducted a review of Feiyu Technology's interim condensed consolidated financial information for the six months ended June 30, 2025, in accordance with Hong Kong Standard on Review Engagements 2410, concluding that nothing came to their attention to indicate that the interim financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34 - Ernst & Young has reviewed the interim financial information in accordance with Hong Kong Standard on Review Engagements 2410, issued by the Hong Kong Institute of Certified Public Accountants[108] - The review concluded that nothing came to their attention to indicate that the interim financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34[109] Interim Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, the company achieved revenue of RMB451,353 thousand, gross profit of RMB428,324 thousand, and a profit for the period of RMB56,542 thousand, successfully reversing the loss from the prior year, with basic and diluted earnings per share attributable to owners of the parent both at RMB0.03 Interim Condensed Consolidated Statement of Profit or Loss (RMB thousand) | Indicator | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Revenue | 451,353 | 101,752 | | Cost of Sales | (23,029) | (16,165) | | Gross Profit | 428,324 | 85,587 | | Other Income and Gains | 7,851 | 8,597 | | Selling and Distribution Expenses | (314,420) | (36,213) | | Administrative Expenses | (21,913) | (19,711) | | Research and Development Costs | (32,435) | (27,152) | | Finance Costs | (1,790) | (2,153) | | Other Expenses | (7,925) | (13,212) | | Share of Profits/(Losses) of Associates | 14 | 2,622 | | Profit/(Loss) Before Tax | 57,706 | (1,635) | | Income Tax Expense | (1,164) | (329) | | Profit/(Loss) for the Period | 56,542 | (1,964) | | Profit/(Loss) Attributable to Owners of the Parent | 57,520 | (1,586) | | Non-controlling Interests | (978) | (378) | | Basic and Diluted Earnings/(Loss) Per Share Attributable to Ordinary Equity Holders of the Parent | RMB0.03 | RMB0.00 | Interim Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the company reported a profit for the period of RMB56,542 thousand and other comprehensive loss of RMB5,036 thousand, resulting in a total comprehensive income for the period of RMB51,506 thousand, a significant increase from the total comprehensive income of RMB3,620 thousand in the prior year Interim Condensed Consolidated Statement of Comprehensive Income (RMB thousand) | Indicator | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Profit/(Loss) for the Period | 56,542 | (1,964) | | Other Comprehensive Income | | | | Debt investments at fair value through other comprehensive income: fair value change | (1,323) | (775) | | Exchange differences on translation of overseas operations | (505) | 821 | | Net other comprehensive income that may be reclassified to profit or loss in subsequent periods | (1,828) | 46 | | Equity investments designated at fair value through other comprehensive income: fair value change | (3,208) | 5,538 | | Net other comprehensive income that will not be reclassified to profit or loss in subsequent periods | (3,208) | 5,538 | | Other comprehensive income for the period, net of tax | (5,036) | 5,584 | | Total Comprehensive Income for the Period | 51,506 | 3,620 | | Attributable to owners of the parent | 52,487 | 3,997 | | Non-controlling interests | (981) | (377) | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, the company's total assets were RMB717,821 thousand, a 5.5% increase from December 31, 2024, with non-current assets growing by 4.5% and current assets by 8.5%, while total equity increased by 11.4% to RMB537,758 thousand and current liabilities decreased by 15.2% Interim Condensed Consolidated Statement of Financial Position (RMB thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current Assets | | | | Property, Plant and Equipment | 58,942 | 58,624 | | Investment Properties | 203,534 | 154,498 | | Right-of-use Assets | 32,895 | 30,108 | | Goodwill | 11,427 | 11,427 | | Other Intangible Assets | 172 | 187 | | Investments in Associates | 14,356 | 14,562 | | Prepayments, Other Receivables and Other Assets | 15,050 | 17,963 | | Time Deposits | 70,000 | 90,000 | | Equity Investments Designated at Fair Value Through Other Comprehensive Income | 34,335 | 37,543 | | Debt Investments at Fair Value Through Other Comprehensive Income | 53,755 | 56,143 | | Financial Assets at Fair Value Through Profit or Loss | 29,159 | 30,300 | | Deferred Tax Assets | 323 | – | | Total Non-current Assets | 523,948 | 501,355 | | Current Assets | | | | Trade and Bills Receivables and Amounts Due from Third-Party Game Publishing Platforms and Payment Channels | 62,735 | 51,019 | | Prepayments, Other Receivables and Other Assets | 20,584 | 15,655 | | Other Current Assets | 8,652 | 9,551 | | Financial Assets at Fair Value Through Profit or Loss | 2,043 | 1,815 | | Cash and Cash Equivalents | 79,859 | 100,687 | | Time Deposits | 20,000 | – | | Total Current Assets | 193,873 | 178,727 | | Current Liabilities | | | | Other Payables and Accruals | 69,883 | 90,980 | | Interest-Bearing Bank Loans | 6,000 | 6,000 | | Lease Liabilities | 1,407 | – | | Tax Payable | 3,216 | 3,308 | | Contract Liabilities | 10,911 | 7,481 | | Total Current Liabilities | 91,417 | 107,769 | | Net Current Assets | 102,456 | 70,958 | | Total Assets Less Current Liabilities | 626,404 | 572,313 | | Non-current Liabilities | | | | Interest-Bearing Bank Loans | 80,500 | 83,500 | | Lease Liabilities | 1,993 | – | | Deferred Tax Liabilities | 3,205 | 2,917 | | Contract Liabilities | 2,948 | 3,316 | | Total Non-current Liabilities | 88,646 | 89,733 | | Net Assets | 537,758 | 482,580 | | Total Equity | 537,758 | 482,580 | Interim Condensed Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, total equity attributable to owners of the parent amounted to RMB525,981 thousand, an increase from RMB469,822 thousand as of December 31, 2024, primarily driven by a profit for the period of RMB57,520 thousand, while changes in other comprehensive income had a negative impact on equity Interim Condensed Consolidated Statement of Changes in Equity (RMB thousand) | Indicator | Share Capital | Share Premium | Statutory Reserve | Equity-Settled Share-Based Payment Reserve | Other Reserves | Financial Assets Revaluation Reserve | Exchange Fluctuation Reserve | Accumulated Losses | Total Attributable to Owners of the Parent | Non-controlling Interests | Total Equity | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | As of December 31, 2024 (Audited) | 1 | 604,624 | 29,661 | 149,146 | 324,419 | (20,957) | 39,370 | (656,442) | 469,822 | 12,758 | 482,580 | | Profit for the Period | – | – | – | – | – | – | – | 57,520 | 57,520 | (978) | 56,542 | | Total Other Comprehensive Income for the Period | – | – | – | – | – | (4,531) | (502) | 57,520 | 52,487 | (981) | 51,506 | | Liquidation of a Subsidiary | – | – | – | – | 3,672 | – | – | – | 3,672 | – | 3,672 | | Transfer to Statutory Reserve | – | – | 2,084 | – | – | – | – | (2,084) | – | – | – | | As of June 30, 2025 (Unaudited) | 1 | 604,624 | 31,745 | 149,146 | 328,091 | (25,488) | 38,868 | (601,006) | 525,981 | 11,777 | 537,758 | Interim Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, net cash flow from operating activities was RMB33,993 thousand, a significant improvement from the net cash outflow of RMB14,856 thousand in the prior year, while net cash outflow from investing activities was RMB50,303 thousand, primarily due to purchases of investment properties and financial assets, with cash and cash equivalents at period-end totaling RMB79,859 thousand Interim Condensed Consolidated Statement of Cash Flows (RMB thousand) | Indicator | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Net Cash Flows From/(Used In) Operating Activities | 33,993 | (14,856) | | Net Cash Flows Used In Investing Activities | (50,303) | (49,507) | | Net Cash Flows Used In Financing Activities | (3,286) | (3,721) | | Net Decrease in Cash and Cash Equivalents | (19,596) | (68,084) | | Cash and Cash Equivalents at Beginning of Period | 100,687 | 160,678 | | Net Effect of Foreign Exchange Rate Changes | (1,232) | 318 | | Cash and Cash Equivalents at End of Period | 79,859 | 92,912 | - Net cash flow from operating activities turned from outflow to inflow, mainly due to profit before tax and an increase in trade receivables[121] - Net cash outflow from investing activities was primarily due to the purchase of investment properties (RMB51,368 thousand) and the purchase of financial assets at fair value through profit or loss (RMB82,320 thousand)[123] Notes to the Interim Condensed Consolidated Financial Information This section provides detailed notes to the interim condensed consolidated financial information, including the basis of preparation, changes in accounting policies, operating segment information, revenue and other income details, profit before tax composition, income tax expense, dividend policy, earnings per share calculation, changes and composition of various assets and liabilities, fair value measurement of financial instruments, and related party transactions, offering deeper explanations and supporting information for the financial statements Basis of Preparation The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" and should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2024 - The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting"[124] - It should be read in conjunction with the Group's annual consolidated financial statements for the year ended December 31, 2024[124] Changes in Accounting Policies and Disclosures The accounting policies adopted in preparing the interim condensed consolidated financial information are consistent with those applied in the 2024 annual consolidated financial statements, except for the initial adoption of the revised International Financial Reporting Standard 21 "Lack of Exchangeability," which had no impact on the financial information as all currencies in which the Group transacts are exchangeable - The accounting policies adopted are consistent with the 2024 annual consolidated financial statements, except for the initial adoption of the revised International Financial Reporting Standard 21 "Lack of Exchangeability"[125][126] - As all currencies in which the Group transacts are exchangeable, these amendments had no impact on the interim condensed consolidated financial information[126] Operating Segment Information No geographical segment information is presented as no single geographical area outside Mainland China accounted for 10% or more of the Group's revenue or operating profit, and all identifiable assets and liabilities are located in Mainland China; furthermore, for the six months ended June 30, 2025, no sales revenue from a single customer accounted for 10% or more of the Group's revenue - No geographical segment information is presented as no single geographical area outside Mainland China accounted for 10% or more of the Group's revenue or operating profit, and all identifiable assets and liabilities are located in Mainland China[127] - For the six months ended June 30, 2025, no sales revenue from a single customer accounted for 10% or more of the Group's revenue[128] Revenue, Other Income and Gains For the six months ended June 30, 2025, total revenue from contracts with customers was RMB451,353 thousand, with game operations accounting for 94.8%, and total other income and gains were RMB7,851 thousand, primarily comprising interest income and operating lease income from investment properties Revenue Breakdown from Contracts with Customers (RMB thousand) | Type of Goods or Services | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Game Operations | 427,737 | 83,312 | | Online Game Publishing | 14 | 192 | | Licensing Income | 3,047 | 6,498 | | Advertising Revenue | 18,638 | 9,646 | | Sale of Goods | 1,870 | 2,096 | | Technical Service Income | 47 | 8 | | Total Revenue from Contracts with Customers | 451,353 | 101,752 | | Timing of Revenue Recognition | | | | Services transferred over time | 2,735 | 6,498 | | Services and goods transferred at a point in time | 448,618 | 95,254 | Other Income and Gains (RMB thousand) | Category | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Government Grants | 551 | 1,418 | | Interest Income | 2,348 | 2,970 | | Gross Rental Income from Operating Leases of Investment Properties | 3,076 | 3,152 | | Total Other Income | 5,975 | 7,540 | | Fair Value Gains on Financial Assets | 1,113 | 651 | | Other Gains | 763 | 406 | | Total Other Income and Gains | 7,851 | 8,597 | Profit/(Loss) Before Tax The Group's profit before tax for the six months ended June 30, 2025, was RMB57,706 thousand, a reversal from a loss of RMB1,635 thousand in the prior year, with key adjustments including marketing costs, advertising expenses, depreciation, amortization, and fair value changes of investment properties Profit/(Loss) Before Tax Adjustment Items (RMB thousand) | Item | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Marketing Costs | 80,158 | 11,782 | | Advertising Expenses | 232,176 | 22,359 | | Depreciation of Property, Plant and Equipment | 1,501 | 1,387 | | Depreciation of Right-of-use Assets | 1,115 | 1,193 | | Amortization of Other Intangible Assets | 15 | 115 | | Net Fair Value Gains/(Losses) on Financial Assets at Fair Value Through Profit or Loss | (977) | 11,012 | | Net Fair Value Change of Investment Properties | 2,332 | 1,034 | | Loss on Disposal of a Subsidiary | 5,197 | – | Income Tax Expense For the six months ended June 30, 2025, income tax expense was RMB1,164 thousand, a 253.8% increase from RMB329 thousand in the prior year, primarily due to the utilization of accumulated deductible losses by a subsidiary and changes in deferred tax expense resulting from fair value changes of investment properties and tax base changes - PRC subsidiaries are subject to income tax at a statutory rate of 25%, except for those qualified as high-new technology enterprises, which enjoy a preferential tax rate of 15%[133] Income Tax Expense (RMB thousand) | Category | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Current Tax | 1,199 | – | | Deferred Tax | (35) | 329 | | Total Tax Expense for the Period | 1,164 | 329 | - The increase in income tax expense was mainly attributable to the utilization of accumulated deductible losses by one of the subsidiaries, as well as changes in deferred tax expense due to fair value changes of investment properties and tax base changes[40] Dividends The Board does not recommend the payment of an interim dividend to ordinary equity holders for the six months ended June 30, 2025, consistent with the prior year - The Board does not recommend the payment of an interim dividend to the ordinary equity holders of the company for the six months ended June 30, 2025 (2024: nil)[135] Earnings Per Share Attributable to Ordinary Equity Holders of the Parent For the six months ended June 30, 2025, both basic and diluted earnings per share attributable to ordinary equity holders of the parent were RMB0.03, compared to RMB0.00 (loss) in the prior year Earnings Per Share Calculation (RMB thousand) | Indicator | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | | Profit/(Loss) attributable to ordinary equity holders of the parent used for basic EPS calculation | 57,520 | (1,586) | | Weighted average number of ordinary shares outstanding during the period used for basic EPS calculation | 1,749,442,062 | 1,749,415,977 | | Dilutive effect - weighted average number of ordinary shares: share options | – | – | | Total | 1,749,442,062 | 1,749,415,977 | - The amount of basic earnings per share is calculated based on the profit for the period attributable to ordinary equity holders of the parent and the weighted average number of ordinary shares outstanding during the period[136] Property, Plant and Equipment For the six months ended June 30, 2025, the Group's cost of additions to property, plant and equipment was RMB1,819 thousand, with depreciation of RMB1,501 thousand, and no disposals of property, plant and equipment during the period - The cost of additions to property, plant and equipment items was RMB1,819 thousand (2024: RMB311 thousand)[138] - Depreciation for the period was RMB1,501 thousand (2024: RMB1,387 thousand)[138] - For the six months ended June 30, 2025, there were no disposals of property, plant and equipment[138] Investment Properties As of June 30, 2025, the carrying value of investment properties was RMB203,534 thousand, with additions of RMB51,368 thousand during the period and a net loss of RMB2,332 thousand from fair value adjustments; all investment properties are commercial properties located in Mainland China Changes in Carrying Value of Investment Properties (RMB thousand) | Item | June 30, 2025 | | :--- | :--- | | Carrying value as of January 1 | 154,498 | | Additions (from acquisitions) | 51,368 | | Net loss from fair value adjustments | (2,332) | | Carrying value as of June 30 | 203,534 | - The Group's investment properties refer to commercial properties in Mainland China[139] Leases For the six months ended June 30, 2025, additions to right-of-use assets amounted to RMB3,900 thousand, and depreciation for the period was RMB1,115 thousand - Additions to right-of-use assets amounted to RMB3,900 thousand (2024: nil)[141] - Depreciation incurred during the period was RMB1,115 thousand (2024: RMB1,193 thousand)[141] Goodwill As of June 30, 2025, and December 31, 2024, the net carrying value of goodwill remained at RMB11,427 thousand, with a cost of RMB432,278 thousand and accumulated impairment of RMB420,851 thousand Carrying Value of Goodwill (RMB thousand) | Item | Amount | | :--- | :--- | | Cost | 432,278 | | Accumulated Impairment | (420,851) | | Net Carrying Value | 11,427 | Other Intangible Assets For the six months ended June 30, 2025, the Group did not acquire any intangible assets, amortization for the period was RMB15 thousand, and there were no disposals of intangible assets - For the six months ended June 30, 2025, the Group did not acquire any intangible assets[143] - Amortization of intangible assets for the period was RMB15 thousand (2024: RMB115 thousand)[143] - For the six months ended June 30, 2025 and 2024, there were no disposals of intangible assets[144] Investments in Associates As of June 30, 2025, the carrying value of investments in associates was RMB14,356 thousand, comprising a share of net assets of RMB3,161 thousand and goodwill on acquisition of RMB11,195 thousand, with a share of profit from associates of RMB14 thousand for the period Investments in Associates (RMB thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Share of Net Assets | 3,161 | 3,367 | | Goodwill on Acquisition | 11,195 | 11,195 | | Total | 14,356 | 14,562 | - For the six months ended June 30, 2025, the share of profit from associates for the period was RMB14 thousand (2024: RMB2,622 thousand)[145] Trade and Bills Receivables and Amounts Due from Third-Party Game Publishing Platforms and Payment Channels As of June 30, 2025, trade and bills receivables and amounts due from third-party game publishing platforms and payment channels totaled RMB62,735 thousand, primarily comprising amounts due within three months, with the company maintaining strict control over outstanding receivables and holding no collateral for these balances, and loss allowances deemed insignificant - The credit period granted to customers by the Group generally ranges from one to three months[146] Ageing Analysis of Receivables (RMB thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within three months | 62,735 | 51,019 | - Impairment analysis is performed using a provision matrix at each reporting date, and loss allowances are deemed insignificant[147] Prepayments, Other Receivables and Other Assets As of June 30, 2025, net non-current prepayments, other receivables, and other assets amounted to RMB15,050 thousand, with the current portion totaling RMB20,584 thousand, for a grand total of RMB35,634 thousand Prepayments, Other Receivables and Other Assets (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current | | | | Prepayments | 6,598 | 7,321 | | Deposits related to prepaid land lease payments | 1,605 | 1,605 | | Other receivables | 15,964 | 18,165 | | Deposits | 95 | 84 | | Impairment allowance | (9,212) | (9,212) | | Total Non-current | 15,050 | 17,963 | | Current | | | | Prepayments | 8,795 | 7,826 | | Investment property rental income | 4,716 | 3,908 | | Deposits | 308 | 237 | | Other receivables | 24,057 | 20,984 | | Impairment allowance | (17,292) | (17,300) | | Total Current | 20,584 | 15,655 | Debt Investments at FVOCI, Equity Investments Designated at FVOCI, and Financial Assets at FVTPL As of June 30, 2025, the company held total financial assets of RMB119,292 thousand, comprising debt investments at fair value through other comprehensive income (RMB53,755 thousand), equity investments designated at fair value through other comprehensive income (RMB34,335 thousand), and financial assets at fair value through profit or loss (RMB31,202 thousand) Financial Assets Details (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Debt investments at fair value through other comprehensive income (ordinary bonds) | 53,755 | 56,143 | | Equity investments designated at fair value through other comprehensive income (unlisted) | 34,335 | 37,543 | | Financial assets at fair value through profit or loss (unlisted debt investments) | 29,159 | 30,300 | | Financial assets at fair value through profit or loss (listed equity investments) | 2,043 | 1,815 | | Total | 119,292 | 125,801 | - Debt investments at fair value through other comprehensive income are debt investments intended to be held indefinitely and may be sold due to liquidity needs or changes in market conditions[151] - Unlisted equity investments are strategic in nature and irrevocably designated at fair value through other comprehensive income[154] - Listed equity investments are classified as financial assets at fair value through profit or loss because they are held for trading[154] Cash and Cash Equivalents As of June 30, 2025, total cash and cash equivalents amounted to RMB79,859 thousand, primarily denominated in RMB, USD, and HKD, with RMB not freely convertible but exchangeable through authorized banks Cash and Cash Equivalents (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and bank balances | 76,608 | 97,420 | | Time deposits | 3,251 | 3,267 | | Cash and Cash Equivalents | 79,859 | 100,687 | | Denominated in RMB | 66,837 | 88,295 | | Denominated in USD | 6,413 | 7,942 | | Denominated in HKD | 5,730 | 4,166 | | Denominated in SGD | 879 | 284 | - RMB is not freely convertible into other currencies, but the Group is permitted to convert RMB into other currencies through banks authorized to conduct foreign exchange business[153] Time Deposits As of June 30, 2025, total time deposits amounted to RMB90,000 thousand, including current and non-current portions, with fixed annual interest rates ranging from 2.15% to 3.25% and maturity dates from January 2026 to January 2027 Time Deposits (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Time deposits | 90,000 | 90,000 | - Current time deposits of RMB10,000,000 bear a fixed annual interest rate of 3.25% and mature in May 2026[155] - Non-current time deposits of RMB30,000,000 bear a fixed annual interest rate of 2.85% and mature in November 2026[155] Other Payables and Accruals As of June 30, 2025, total other payables and accruals amounted to RMB69,883 thousand, a decrease from RMB90,980 thousand as of December 31, 2024, primarily comprising salaries and welfare payable, other payables and accruals, other taxes payable, and advances from customers Other Payables and Accruals (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Salaries and welfare payable | 28,934 | 42,641 | | Other payables and accruals | 35,012 | 42,473 | | Other taxes payable | 4,795 | 5,322 | | Advances from customers | 1,142 | 544 | | Total | 69,883 | 90,980 | Interest-Bearing Bank Loans As of June 30, 2025, total interest-bearing bank loans amounted to RMB86,500 thousand, with RMB6,000 thousand as current loans and RMB80,500 thousand as non-current loans, bearing an effective annual interest rate of 3.50% and secured by the headquarters building, investment properties, and leased land Interest-Bearing Bank Loans (RMB thousand) | Category | Effective Interest Rate (%) | Maturity | June 30, 2025 | Effective Interest Rate (%) | Maturity | December 31, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Current | | | | | | | | Bank loans - secured | 3.50 | 2025 | 6,000 | 3.60 | 2025 | 6,000 | | Non-current | | | | | | | | Bank loans - secured | 3.50 | 2025 to 2038 | 80,500 | 3.60 | 2025 to 2038 | 83,500 | | Total | | | 86,500 | | | 89,500 | - The Group's headquarters building, investment properties, and leased land are pledged as collateral for the long-term loan financing obtained by the Group[157] Contract Liabilities As of June 30, 2025, total contract liabilities amounted to RMB13,859 thousand, primarily comprising unspent virtual currency and virtual items prepaid by players, as well as upfront revenue sharing and remaining upfront licensing fees from game distribution platforms for online game services Contract Liabilities (RMB thousand) | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Advances Received | | | | Online network and mobile games | 9,497 | 5,970 | | Licensing income | 1,414 | 1,511 | | Non-current Advances Received | | | | Licensing income | 2,948 | 3,316 | | Total Contract Liabilities | 13,859 | 10,797 | - Contract liabilities primarily refer to unspent virtual currency and virtual items prepaid by players, as well as upfront revenue sharing and remaining upfront licensing fees from