太美医疗科技(02576) - 2025 - 中期财报

Company Information Board of Directors and Committees This section details the composition of Zhejiang Taimei Medical Technology Co., Ltd.'s Board of Directors, including executive and independent non-executive directors, and its key committees - The Board of Directors comprises executive directors (including Chairman Mr. Zhao Lu) and independent non-executive directors[6] - The company has established an Audit Committee, Remuneration and Appraisal Committee, Nomination Committee, and Supervisory Committee, with their respective chairpersons and members specified[6] Corporate Contact and Legal Advisors This section provides key contact information for the company, including auditors, company secretaries, registered offices, principal places of business, and stock code - The auditor is PricewaterhouseCoopers, and the joint company secretaries are Ms. Ni Xiaomei and Mr. Pan Bingyang[6] - The company's headquarters are in Jiaxing, Zhejiang Province, China, with its principal place of business in Hong Kong located at Golden Centre, Des Voeux Road Central[6] - The stock code is 2576, and the company website is www.taimei.com[7](index=7&type=chunk) Definitions Definitions of Key Terms This section defines key terms and abbreviations used in the interim report, covering company entities, industry terminology, regulatory standards, and AI-driven product names - “The Company” or “Taimei Medical Technology” refers to Zhejiang Taimei Medical Technology Co., Ltd. and its predecessors[8] - “The Group” or “We” refers to the Company and its subsidiaries[8] Definitions of Key Industry Terms and AI Products | Term | Definition | | :--- | :--- | | CRO | Contract Research Organization, providing drug development services to pharmaceutical companies | | HIPAA | U.S. Health Insurance Portability and Accountability Act, protecting patient medical information privacy and security | | ICH-GCP | International Conference on Harmonisation - Good Clinical Practice, quality management standards for clinical trials of medicinal products | | iCTA | Intelligent Clinical Trial Assistant, an AI-powered agent for intelligent classification, quality control, and naming of trial documents | | iDM | Intelligent Data Manager, an AI-driven automation technology to improve data management efficiency and quality | | iPV | Intelligent Pharmacovigilance, an AI-powered agent for automated processing of individual safety reports, supporting multinational regulatory submissions | | IRC | Independent Review Committee, providing impartial review and analysis of clinical trial imaging data | | PDPA | Personal Data Protection Act, regulating the collection, use, and disclosure of personal data | | SaaS | Software as a Service | | SMO | Site Management Organization, assisting clinical trial sites with specific operational tasks | Financial Highlights Overview of Key Financial Indicators This section summarizes key financial data for the six months ended June 30, 2025, showing decreased revenue and gross profit, significantly narrowed operating and period losses, and reduced total assets and liabilities Key Financial Data for the Six Months Ended June 30 | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 244,221 | 272,784 | -10.5 | | Gross Profit | 100,188 | 110,944 | -9.7 | | Operating Loss | (48,710) | (191,995) | -74.6 | | Loss for the Period | (29,309) | (175,317) | -83.3 | | Adjusted Net Loss (Non-IFRS Measure) | (28,696) | (49,253) | -41.7 | Balance Sheet Data as of June 30, 2025 and December 31, 2024 | Indicator | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Change (RMB '000) | | :--- | :--- | :--- | :--- | | Total Assets | 1,518,520 | 1,583,197 | (64,677) | | Total Liabilities | 302,104 | 348,624 | (46,520) | | Equity Attributable to Owners of the Company | 1,146,000 | 1,157,810 | (11,810) | | Cash and Cash Equivalents | 253,013 | 319,297 | (66,284) | Management Discussion and Analysis Business Review For the six months ended June 30, 2025, the Group's revenue decreased by 10.5% to RMB 244.2 million, primarily due to reduced digital services income, while gross profit declined, gross margin slightly improved, and losses significantly narrowed Revenue and Profit Overview for the Six Months Ended June 30 | Indicator | 2025 (RMB million) | 2024 (RMB million) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 244.2 | 272.8 | -10.5 | | Gross Profit | 100.2 | 110.9 | -9.7 | | Gross Margin | 41.0% | 40.7% | +0.3 pp | | Loss for the Period | (29.3) | (175.3) | -83.3 | | Adjusted Net Loss | (28.7) | (49.3) | -41.7 | - The company provides solutions for the pharmaceutical and medical device industries, including cloud software (SaaS products, customized products) and digital services, primarily through the "Trials R&D Collaboration Platform" and "PharmaOS Pharmaceutical Digital Marketing Platform," partially enabled by the Vence AI platform[17][21][22] - In the first half of 2025, cloud software revenue accounted for 38.7% of operating revenue, while digital services revenue accounted for 61.2%[23][26] Business Outlook and Prospects The company will enhance AI R&D, launching a "Clinical Research Digital Intelligence Evolution Blueprint" and "Digital Employee" system to integrate AI models with SaaS platforms, aiming to implement an AIaaS collaboration model and expand globally through data and delivery centers in China, the US, and Singapore - In the first half of 2025, the company officially released its "Clinical Research Digital Intelligence Evolution Blueprint," introducing an AIaaS (AI as a service) collaboration model through deep integration of large AI models with SaaS platforms[28] - The company pioneered a "Digital Employee" system, embedding AI agents across the entire clinical research process to boost productivity; for instance, iDM (Intelligent Data Manager) can improve database creation efficiency by 80%, iCTA (Intelligent Clinical Trial Assistant) can reduce attribute filling time by 70%, and iPV (Intelligent Pharmacovigilance) can increase efficiency by 300%[28][29] - The company plans to leverage the "Digital Employee" system as a core driver to implement the AIaaS business model, billing based on "task volume + effect" and enhancing products and services through data security and compliance expertise[30] - International expansion is underway, with three data and delivery centers established in China, the US, and Singapore, and multiple international certifications such as HIPAA, PDPA, and ICH-GCP obtained, aiming to meet client demands for high-quality and efficient global multi-center clinical research[31] Financial Review This section reviews the Group's financial performance for the six months ended June 30, 2025, noting a 10.5% revenue decrease, reduced gross profit with a slight margin increase, significant declines in operating expenses, and substantial narrowing of losses, alongside improved liquidity ratios Revenue Breakdown for the Six Months Ended June 30 | Revenue Source | 2025 (RMB '000) | 2024 (RMB '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Cloud Software - SaaS Products | 82,425 | 81,564 | 1.1 | | Cloud Software - Customized Products | 12,171 | 15,993 | -23.9 | | Cloud Software Subtotal | 94,596 | 97,557 | -3.0 | | Digital Services | 149,371 | 175,227 | -14.8 | | Others | 254 | – | Not applicable | | Total | 244,221 | 272,784 | -10.5 | - Cost of sales decreased by 11.0% year-on-year to RMB 144.0 million, primarily due to improved labor efficiency and reduced revenue[35] - Gross profit decreased by 9.7% year-on-year to RMB 100.2 million, with the gross margin slightly increasing from 40.7% to 41.0%[36] Major Expense Changes for the Six Months Ended June 30 | Expense Category | 2025 (RMB '000) | 2024 (RMB '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Selling Expenses | 37,573 | 51,158 | -26.6 | | Administrative Expenses | 57,679 | 217,186 | -73.4 | | Research and Development Expenses | 37,705 | 50,924 | -26.0 | - The significant reduction in administrative expenses was primarily due to a RMB 121.3 million decrease in share-based payments and a RMB 30.3 million reduction in staff costs[38] - Other income decreased from RMB 9.8 million to RMB 2.4 million, mainly due to a RMB 6.8 million reduction in government grants[41] - A net other loss of RMB 12.9 million was recorded (compared to a net gain of RMB 7.8 million in the same period of 2024), primarily impacted by a net foreign exchange loss of RMB 16.1 million[43] - Loss for the period decreased by 83.3% from RMB 175.3 million to RMB 29.3 million[45] - Adjusted net loss (non-IFRS measure) was RMB 28.7 million, a year-on-year decrease of 41.7%[16][47] Liquidity Ratios | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Ratio | 5.66 | 5.05 | | Debt-to-Asset Ratio | 19.9% | 22.0% | Other Financial Information This section covers the Group's significant investment plans, contingent liabilities, capital commitments, off-balance sheet commitments, and employee remuneration, noting no major activities or liabilities during the reporting period and proper allocation of global offering proceeds - During the reporting period and up to the report date, the Group had no other significant investment and capital asset plans, nor any material acquisitions or disposals of subsidiaries, associates, and joint ventures[55][56] - As of June 30, 2025, the Group had no material contingent liabilities, capital commitments, or off-balance sheet commitments and arrangements[57][58][59] Employee Functional Distribution as of June 30, 2025 | Function | Number of Employees | Percentage of Total (%) | | :--- | :--- | :--- | | R&D | 127 | 19.4 | | Sales & Marketing | 85 | 13.0 | | Professional & Technical Staff | 359 | 54.7 | | Administrative | 85 | 13.0 | | Total | 656 | 100.0 | - For the six months ended June 30, 2025, total staff costs amounted to RMB 152.1 million, a year-on-year decrease[60] Use of Net Proceeds from Global Offering (as of June 30, 2025) | Intended Use of Net Proceeds | Allocated (HKD million) | Approximate Percentage of Total Net Proceeds (%) | Utilized (HKD million) | Unutilized (HKD million) | Planned Utilization Schedule | | :--- | :--- | :--- | :--- | :--- | :--- | | Improvement and Upgrade of Platform and Cloud Software | 90.8 | 35% | 9.2 | 81.6 | Before December 31, 2029 | | Enhancement of Core Technologies and R&D Capabilities | 77.9 | 30% | 5.7 | 72.2 | Before December 31, 2029 | | Strengthening Sales and Marketing Capabilities | 26.0 | 10% | 0.7 | 25.3 | Before December 31, 2029 | | Selectively Seeking Strategic Investments and Acquisitions | 38.9 | 15% | 0 | 38.9 | Before December 31, 2029 | | Working Capital and General Corporate Purposes | 25.9 | 10% | 3.1 | 22.9 | Before December 31, 2029 | | Total | 259.5 | 100% | 18.7 | 240.8 | | Other Information Interim Dividend and Corporate Governance The Board does not recommend an interim dividend for the six months ended June 30, 2025, intending to retain future earnings for operations and business expansion, while maintaining high corporate governance standards in compliance with listing rules - The Board does not recommend the payment of an interim dividend for the reporting period (2024: nil)[64] - The company expects to retain all future earnings for operations and business expansion, currently having no dividend policy[66] - The Group is committed to maintaining high standards of corporate governance and has complied with all applicable code provisions of the Corporate Governance Code[65] Securities Transactions and Audit Committee The company has adopted the Model Code for securities transactions by directors, supervisors, and senior management, with all relevant personnel confirming compliance, and the Audit Committee has reviewed the interim financial results, confirming adherence to accounting standards and regulations - All directors and supervisors confirmed compliance with the Model Code set out in Appendix C3 of the Listing Rules throughout the reporting period[67] - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[68] - The Audit Committee has reviewed the interim financial results for the six months ended June 30, 2025, and deemed them compliant with relevant accounting standards, rules, and regulations[69] Events After Reporting Period After the reporting period, Mr. Jiang Chengwen resigned as Chief Financial Officer due to personal matters, and Mr. Wang Wei was appointed as the new Chief Financial Officer, effective July 25, 2025 - Mr. Jiang Chengwen resigned as the company's Chief Financial Officer, effective July 25, 2025[70] - The Board resolved to appoint Mr. Wang Wei as the company's Chief Financial Officer, effective July 25, 2025[70] Interests of Directors, Supervisors and Chief Executive This section discloses the interests of directors, supervisors, and the chief executive in the company's shares and related shares as of June 30, 2025, with Chairman and Executive Director Mr. Zhao Lu holding significant interests Directors' Interests in Shares (as of June 30, 2025) | Director's Name | Position | Nature of Interest | Class of Shares | Number of Shares/Related Shares Held | Approximate Percentage of Total Issued Shares (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Mr. Zhao Lu | Chairman and Executive Director | Beneficial owner; interest in controlled corporation | Domestic Shares | 178,203,028 | 31.61 | | | | | H Shares | 1,216,500 | 0.22 | | Mr. Zhang Hongwei | Executive Director and Head of Digital Marketing Business Unit | Interest in controlled corporation | Domestic Shares | 20,312,190 | 3.60 | - As of June 30, 2025, the company had 563,779,000 shares in total, comprising 363,186,467 domestic shares and 200,592,533 H shares[74] Interests of Substantial Shareholders This section lists the interests of substantial shareholders (excluding directors, supervisors, or chief executives) in the company's shares and related shares as of June 30, 2025, including Ms. Tang Lili, employee shareholding platforms, Tencent, Matrix Partners, Northern Light Venture Capital, Zheshang Venture Capital, and SoftBank-related entities Substantial Shareholders' Interests in Shares (as of June 30, 2025) | Shareholder Name | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Total Issued Share Capital (%) | | :--- | :--- | :--- | :--- | | Tang Lili | Interest in controlled corporation; spouse's interest | 178,203,028 Domestic Shares | 31.61 | | Shanghai Kunrui | Beneficial owner | 19,344,866 Domestic Shares | 3.43 | | Shanghai Xiaoju | Beneficial owner | 20,312,190 Domestic Shares | 3.60 | | Xinyu Shenkong | Beneficial owner | 18,204,844 Domestic Shares | 3.23 | | Oriental Power Holdings Limited | Interest in controlled corporation | 51,911,405 Domestic Shares, 12,977,851 H Shares | 9.21, 2.30 | | Tencent Holdings Limited | Interest in controlled corporation | 51,911,405 Domestic Shares, 12,977,851 H Shares | 9.21, 2.30 | | Ma Huateng | Interest in controlled corporation | 44,880,821 Domestic Shares, 11,220,205 H Shares | 7.96, 1.99 | | Matrix Partners China V (Hangzhou) Venture Capital Partnership (Limited Partnership) | Beneficial owner | 22,349,533 Domestic Shares, 28,100,879 H Shares | 3.96, 4.98 | | Zuo Lingye | Interest in controlled corporation | 23,908,953 Domestic Shares, 30,061,593 H Shares | 4.24, 5.33 | | Northern Light Venture Capital (Suzhou) Zheng Yuan Venture Capital Partnership (Limited Partnership) | Beneficial owner | 10,139,955 H Shares | 1.80 | | Zheshang Venture Capital Co., Ltd. | Beneficial owner; interest in controlled corporation | 10,094,225 H Shares | 1.79 | | Zhang Xu | Interest in controlled corporation | 12,285,138 H Shares | 2.19 | - Ms. Tang Lili, as the spouse of Mr. Zhao Lu, is deemed to have an interest in the H shares and domestic shares in which Mr. Zhao has an interest or is deemed to have an interest[81] Changes in Information of Directors and Supervisors and Continuing Disclosure Obligations There have been no significant changes in the information of directors and supervisors since the publication of the 2024 annual report, and the company has no other continuing disclosure obligations under Listing Rules 13.20, 13.21, and 13.22 - No changes in the information of directors and supervisors requiring disclosure under Rule 13.51B(1) of the Listing Rules have occurred since the publication date of the 2024 annual report and up to the date of this interim report[91] - The company has no other disclosure obligations under Rules 13.20, 13.21, and 13.22 of the Listing Rules[92] Interim Financial Information Review Report Independent Auditor's Review Conclusion PricewaterhouseCoopers reviewed the Group's interim financial information for the six months ended June 30, 2025, finding no matters suggesting it was not prepared in all material respects in accordance with IAS 34 - PricewaterhouseCoopers has reviewed the Group's interim financial information for the six months ended June 30, 2025[94] - The scope of the review is substantially less than an audit, thus no audit opinion is expressed[95] - Conclusion: Nothing has come to the auditor's attention that causes them to believe the interim financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34 "Interim Financial Reporting"[96] Interim Condensed Consolidated Statement of Profit or Loss Profit or Loss Performance for the Six Months Ended June 30, 2025 For the six months ended June 30, 2025, the Group's revenue was RMB 244,221 thousand, a 10.5% year-on-year decrease, with gross profit at RMB 100,188 thousand, operating loss at RMB (48,710) thousand, and loss for the period significantly narrowed to RMB (29,309) thousand Interim Condensed Consolidated Statement of Profit or Loss (for the Six Months Ended June 30) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 244,221 | 272,784 | | Cost of Sales | (144,033) | (161,840) | | Gross Profit | 100,188 | 110,944 | | Selling Expenses | (37,573) | (51,158) | | Administrative Expenses | (57,679) | (217,186) | | Research and Development Expenses | (37,705) | (50,924) | | Operating Loss | (48,710) | (191,995) | | Loss for the Period | (29,309) | (175,317) | | Loss Attributable to Owners of the Company | (22,802) | (171,126) | | Loss Attributable to Non-controlling Interests | (6,507) | (4,191) | | Basic and Diluted Loss Per Share (RMB) | (0.04) | (0.32) | Interim Condensed Consolidated Statement of Comprehensive Loss Comprehensive Loss Performance for the Six Months Ended June 30, 2025 For the six months ended June 30, 2025, the Group's loss for the period significantly decreased to RMB (29,309) thousand, with total comprehensive loss for the period narrowing to RMB (18,770) thousand after considering exchange differences from translating overseas operations Interim Condensed Consolidated Statement of Comprehensive Loss (for the Six Months Ended June 30) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Loss for the Period | (29,309) | (175,317) | | Exchange differences arising from translation of overseas operations | 10,539 | (2,098) | | Other comprehensive income/(loss) for the period (net of tax) | 10,539 | (2,098) | | Total comprehensive loss for the period | (18,770) | (177,415) | | Total comprehensive loss for the period attributable to owners of the Company | (12,423) | (173,240) | | Total comprehensive loss for the period attributable to non-controlling interests | (6,347) | (4,175) | Interim Condensed Consolidated Statement of Financial Position Financial Position as of June 30, 2025 As of June 30, 2025, the Group's total assets were RMB 1,518,520 thousand, slightly down from December 31, 2024, with increased short-term bank deposits offsetting decreased cash and cash equivalents, while total liabilities and total equity also decreased Interim Condensed Consolidated Statement of Financial Position (as of June 30, 2025) | Indicator | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Assets | | | | Non-current assets | 96,304 | 106,097 | | Current assets | 1,422,216 | 1,477,100 | | Total assets | 1,518,520 | 1,583,197 | | Equity | | | | Equity attributable to owners of the Company | 1,146,000 | 1,157,810 | | Non-controlling interests | 70,416 | 76,763 | | Total equity | 1,216,416 | 1,234,573 | | Liabilities | | | | Non-current liabilities | 50,696 | 56,032 | | Current liabilities | 251,408 | 292,592 | | Total liabilities | 302,104 | 348,624 | | Total equity and liabilities | 1,518,520 | 1,583,197 | - Short-term bank deposits within current assets increased from RMB 599,920 thousand to RMB 736,071 thousand, while cash and cash equivalents decreased from RMB 319,297 thousand to RMB 253,013 thousand[102] Interim Condensed Consolidated Statement of Changes in Equity Changes in Equity for the Six Months Ended June 30, 2025 For the six months ended June 30, 2025, the Group's total equity decreased from RMB 1,234,573 thousand to RMB 1,216,416 thousand, primarily due to a loss for the period of RMB (29,309) thousand, partially offset by exchange differences and share-based payments Interim Condensed Consolidated Statement of Changes in Equity (for the Six Months Ended June 30) | Indicator | Share Capital (RMB '000) | Other Reserves (RMB '000) | Currency Translation Reserve (RMB '000) | Accumulated Losses (RMB '000) | Total (RMB '000) | Non-controlling Interests (RMB '000) | Total Equity (RMB '000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | As of January 1, 2025 | 563,779 | 2,295,189 | 1,919 | (1,703,077) | 1,157,810 | 76,763 | 1,234,573 | | Loss for the period | – | – | – | (22,802) | (22,802) | (6,507) | (29,309) | | Exchange differences arising from translation of overseas operations | – | – | 10,379 | – | 10,379 | 160 | 10,539 | | Share-based payments | – | 613 | – | – | 613 | – | 613 | | As of June 30, 2025 | 563,779 | 2,295,802 | 12,298 | (1,725,879) | 1,146,000 | 70,416 | 1,216,416 | Interim Condensed Consolidated Statement of Cash Flows Cash Flow Analysis for the Six Months Ended June 30, 2025 For the six months ended June 30, 2025, the Group's cash and cash equivalents decreased by RMB 64,274 thousand, with a significantly reduced net cash used in operating activities and a shift to net cash inflow from investing activities Interim Condensed Consolidated Statement of Cash Flows (for the Six Months Ended June 30) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Net cash used in operating activities | (47,927) | (132,927) | | Net cash from/(used in) investing activities | 218 | (304,455) | | Net cash used in financing activities | (16,565) | (15,394) | | Net decrease in cash and cash equivalents | (64,274) | (452,776) | | Cash and cash equivalents at end of period | 253,013 | 65,934 | - Net cash used in operating activities significantly decreased from RMB (132,927) thousand in the same period of 2024 to RMB (47,927) thousand in 2025[107] - Investing activities shifted from a net outflow of RMB (304,455) thousand in the same period of 2024 to a net inflow of RMB 218 thousand in 2025, primarily due to changes in deposits and redemptions of short-term bank deposits[107] Notes to the Interim Condensed Consolidated Financial Information General Information Zhejiang Taimei Medical Technology Co., Ltd., established in China in 2013 and listed on the HKEX in 2024, primarily provides life science R&D and marketing digitalization solutions in China and overseas, with Mr. Zhao Lu as the ultimate controlling shareholder - The company was established in China on June 6, 2013, completed its share restructuring on September 11, 2020, and was listed on the Main Board of the Hong Kong Stock Exchange on October 8, 2024[108][110] - The Group is primarily engaged in providing life science R&D and marketing digitalization solutions[108] - The ultimate controlling shareholder of the Group is Mr. Zhao Lu[109] Basis of Preparation This condensed consolidated interim financial information is prepared in accordance with IAS 34 "Interim Financial Reporting" and should be read in conjunction with the Group's consolidated financial statements for the year ended December 31, 2024 - The condensed consolidated interim financial information has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting"[111] - This report should be read in conjunction with the Group's consolidated financial statements for the year ended December 31, 2024[111] New Standards and Interpretations The Group first applied IAS 21 (amended) "Lack of Exchangeability" for the fiscal year beginning January 1, 2025, with no significant impact on the interim financial information, and other unadopted new standards are not expected to have a material effect - The Group first applied IAS 21 (amended) "Lack of Exchangeability" for the fiscal year beginning January 1, 2025, which had no significant impact[113][114] - Other amendments to existing standards not yet adopted are not expected to have a material impact on the Group's condensed consolidated interim financial information[115] Fair Value Measurement of Financial Instruments This section outlines the Group's fair value measurement of financial instruments across three levels, with warrant liabilities classified as Level 3 and sensitive to changes in discount rates as of June 30, 2025 Fair Value Hierarchy of Financial Instruments (as of June 30, 2025) | Indicator | Level 1 (RMB '000) | Level 2 (RMB '000) | Level 3 (RMB '000) | Total (RMB '000) | | :--- | :--- | :--- | :--- | :--- | | Warrant liabilities | – | – | 35,318 | 35,318 | Fair Value Hierarchy of Financial Instruments (as of December 31, 2024) | Indicator | Level 1 (RMB '000) | Level 2 (RMB '000) | Level 3 (RMB '000) | Total (RMB '000) | | :--- | :--- | :--- | :--- | :--- | | Financial assets at fair value through profit or loss | – | – | 120,792 | 120,792 | | Warrant liabilities | – | – | 35,347 | 35,347 | - If the discount rate for warrant liabilities decreased/increased by 1%, the loss before income tax for the six months ended June 30, 2025, would increase/decrease by approximately RMB 344,000, respectively[123] Segment Information The Group operates and is managed as a single segment, thus no segment information is presented, with no single external customer accounting for 10% or more of revenue, and both revenue and non-current assets primarily originating from mainland China - The Group's operations are managed as a single segment, and therefore no segment information is presented[124] - For the six months ended June 30, 2025, no revenue from transactions with a single external customer accounted for 10% or more of the Group's revenue[125] Consolidated Total Revenue by Customer Location (for the Six Months Ended June 30) | Region | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Mainland China | 238,577 | 267,292 | | South Korea | 1,058 | 2,292 | | Singapore | 1,872 | 1,750 | | Europe | 1,360 | 1,030 | | Others | 1,354 | 420 | | Total | 244,221 | 272,784 | - As of June 30, 2025, total non-current assets amounted to RMB 84,465 thousand, with RMB 83,283 thousand located in mainland China[127] Revenue For the six months ended June 30, 2025, the Group's revenue was RMB 244,221 thousand, primarily from digital services and cloud software products, with most revenue recognized over time, and contract assets increasing while contract liabilities decreased Revenue Breakdown (for the Six Months Ended June 30) | Revenue Source | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Cloud Software Products - SaaS Products | 82,425 | 81,564 | | Cloud Software Products - Customized Products | 12,171 | 15,993 | | Digital Services | 149,371 | 175,227 | | Other Services | 254 | – | | Total | 244,221 | 272,784 | - By timing of revenue recognition, RMB 238,162 thousand was recognized over time, and RMB 6,059 thousand was recognized at a point in time[128] - Contract assets increased from RMB 16,614 thousand as of December 31, 2024, to RMB 19,722 thousand as of June 30, 2025[129] - Contract liabilities decreased from RMB 86,699 thousand as of December 31, 2024, to RMB 69,699 thousand as of June 30, 2025[130] Expenses by Nature For the six months ended June 30, 2025, the Group's total expenses significantly decreased to RMB 276,990 thousand from RMB 481,108 thousand in the prior year, primarily due to reduced employee benefits and the absence of share compensation and listing expenses present in the previous period Analysis of Expenses by Nature (for the Six Months Ended June 30) | Expense Category | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Employee benefit expenses (excluding share-based payments) | 152,050 | 209,643 | | Clinical research related costs | 70,322 | 74,207 | | IT infrastructure and data service costs | 14,423 | 17,728 | | Office, business development and travel expenses | 11,708 | 12,749 | | Consultancy and professional service fees | 6,827 | 3,666 | | Depreciation of right-of-use assets | 5,223 | 13,045 | | Depreciation of property, plant and equipment | 3,068 | 10,609 | | Amortisation of intangible assets | 2,115 | 2,107 | | Short-term lease expenses | 644 | 757 | | Share-based payments | 613 | 22,242 | | Share compensation to certain shareholders | – | 92,836 | | Listing expenses related to global offering | – | 10,986 | | Other expenses | 9,997 | 10,533 | | Total | 276,990 | 481,108 | Other Income For the six months ended June 30, 2025, the Group's other income significantly decreased to RMB 2,445 thousand from RMB 9,824 thousand in the prior year, primarily due to a RMB 6,807 thousand reduction in government grants Other Income Breakdown (for the Six Months Ended June 30) | Income Source | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Government grants | 1,734 | 8,541 | | Others | 711 | 1,283 | | Total | 2,445 | 9,824 | - Government grants received during the period primarily comprised financial subsidies from various local government authorities in mainland China[132] Other (Losses)/Gains, Net For the six months ended June 30, 2025, the Group recorded a net other loss of RMB 12,932 thousand, a shift from a net gain of RMB 7,849 thousand in the prior year, primarily driven by a net foreign exchange loss of RMB 16,075 thousand Other (Losses)/Gains, Net Breakdown (for the Six Months Ended June 30) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Fair value gains on financial assets at fair value through profit or loss | 1,123 | 6,954 | | Net foreign exchange (losses)/gains | (16,075) | 5,275 | | Fair value gains/(losses) on warrant liabilities | 29 | (936) | | Others | 1,991 | (3,444) | | Total | (12,932) | 7,849 | Net Finance Income For the six months ended June 30, 2025, the Group's net finance income increased to RMB 19,401 thousand from RMB 16,678 thousand in the prior year, primarily due to a RMB 2,846 thousand increase in interest income Net Finance Income Breakdown (for the Six Months Ended June 30) | Indicator | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Finance income - Interest income | 19,775 | 16,929 | | Finance income - Accrued income on long-term receivables | 205 | – | | Finance costs - Interest expense on bank borrowings | (130) | – | | Finance costs - Interest expense on lease liabilities | (449) | (251) | | Net finance income | 19,401 | 16,678 | Income Tax Expense The Group recorded no income tax expense for the six months ended June 30, 2025, due to a loss for the period, with eligible entities in mainland China enjoying preferential tax rates and no tax provision made for overseas subsidiaries without estimated taxable profits - For the six months ended June 30, 2025, the Group recorded no income tax expense[99] - Entities in mainland China qualified as "High and New Technology Enterprises" enjoy a preferential income tax rate of 15%[135] - Certain subsidiaries in mainland China qualified as "Small and Micro Profit Enterprises" enjoy a preferential income tax rate of 20%[135] - No income tax provision was made for subsidiaries in Singapore and the United States due to no estimated taxable profits subject to profit tax[136][137] Loss Per Share For the six months ended June 30, 2025, the Group's basic and diluted loss per share significantly narrowed to RMB (0.04) from RMB (0.32) in the prior year, with diluted loss per share being the same as basic loss per share due to the anti-dilutive effect of potential ordinary shares Loss Per Share (for the Six Months Ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Loss attributable to owners of the Company (RMB '000) | (22,802) | (171,126) | | Weighted average number of ordinary shares in issue ('000 shares) | 563,779 | 538,000 | | Basic loss per share (expressed in RMB per share) | (0.04) | (0.32) | - As the Group incurred a loss for the period, potential ordinary shares were not included in the calculation of diluted loss per share, thus diluted loss per share is the same as basic loss per share[140] Dividends The company neither declared nor paid any dividends for the six months ended June 30, 2025, consistent with the prior year - For the six months ended June 30, 2025, the company neither declared nor paid any dividends (2024: nil)[141] Property, Plant and Equipment The Group's net book value of property, plant, and equipment decreased to RMB 10,295 thousand as of June 30, 2025, from RMB 12,201 thousand as of December 31, 2024, primarily due to depreciation expenses, which are mainly recognized in administrative expenses - The net book value of property, plant, and equipment decreased from RMB 12,201 thousand as of December 31, 2024, to RMB 10,295 thousand as of June 30, 2025[142] - Total depreciation expense for the six months ended June 30, 2025, was RMB 3,068 thousand, of which RMB 2,126 thousand was recognized in administrative expenses[143] Right-of-use Assets and Lease Liabilities The Group's net book value of right-of-use assets (primarily leased buildings) decreased to RMB 17,819 thousand as of June 30, 2025, from RMB 23,003 thousand as of December 31, 2024, with a corresponding reduction in lease liabilities, and depreciation expenses mainly recognized in administrative expenses and cost of sales - The net book value of right-of-use assets (leased buildings) decreased from RMB 23,003 thousand as of December 31, 2024, to RMB 17,819 thousand as of June 30, 2025[145][147] - Total lease liabilities decreased from RMB 24,754 thousand as of December 31, 2024, to RMB 18,772 thousand as of June 30, 2025[145] - Depreciation expense for right-of-use assets for the six months ended June 30, 2025, was RMB 5,223 thousand, with RMB 1,834 thousand recognized in administrative expenses and RMB 1,801 thousand in cost of sales[148] Intangible Assets The Group's net book value of intangible assets slightly decreased to RMB 56,351 thousand as of June 30, 2025, from RMB 58,181 thousand as of December 31, 2024, primarily due to amortization, while goodwill remained unchanged at RMB 37,008 thousand from a 2019 acquisition - The net book value of intangible assets decreased from RMB 58,181 thousand as of December 31, 2024, to RMB 56,351 thousand as of June 30, 2025[149] - Amortization expense for the six months ended June 30, 2025, was RMB 2,115 thousand, primarily recognized in administrative expenses[150] - Goodwill balance was RMB 37,008 thousand, arising from the 2019 acquisitions of Taimei Xinghuan and Beijing Nuoming Technology Co., Ltd[151] Deferred Income Tax As of June 30, 2025, the Group had no net deferred income tax assets or liabilities, as deferred tax assets and liabilities were offset, with changes primarily related to tax losses, credit loss provisions, and lease liabilities - As of June 30, 2025, the Group had no net deferred income tax assets or liabilities[152] - Changes in deferred income tax assets and liabilities were primarily influenced by tax losses, credit loss provisions, and lease liabilities[153] Contract Fulfilment Costs The Group's contract fulfilment costs increased to RMB 6,172 thousand as of June 30, 2025, from RMB 3,546 thousand as of December 31, 2024, arising from customized software contracts and to be recognized as cost of sales within 2 to 6 months after performance obligations are met - Contract fulfilment costs increased from RMB 3,546 thousand as of December 31, 2024, to RMB 6,172 thousand as of June 30, 2025[154] - Contract fulfilment costs are recognized from costs incurred in fulfilling customized software contracts and will be recognized as cost of sales within 2 to 6 months after the related performance obligations are satisfied[154] Trade and Bills Receivables The Group's total trade and bills receivables slightly decreased to RMB 165,861 thousand as of June 30, 2025, from RMB 170,013 thousand as of December 31, 2024, with an increase in impairment provision for trade receivables, and most receivables aged within six months - Total trade and bills receivables decreased from RMB 170,013 thousand as of December 31, 2024, to RMB 165,861 thousand as of June 30, 2025[155] - Impairment provision for trade receivables increased from RMB 20,629 thousand as of December 31, 2024, to RMB 25,401 thousand as of June 30, 2025[155] Ageing Analysis of Trade Receivables (as of June 30, 2025) | Ageing | Amount (RMB '000) | | :--- | :--- | | Within 3 months | 83,279 | | 3 to 6 months | 32,854 | | 6 months to 1 year | 31,124 | | 1 to 2 years | 28,366 | | 2 to 3 years | 11,051 | | Over 3 years | 3,681 | | Total | 190,355 | Other Receivables and Prepayments The Group's total other receivables and prepayments slightly decreased to RMB 81,194 thousand as of June 30, 2025, from RMB 82,444 thousand as of December 31, 2024, primarily comprising prepayments for products and services and deductible input VAT - Total other receivables and prepayments decreased from RMB 82,444 thousand as of December 31, 2024, to RMB 81,194 thousand as of June 30, 2025[158] - Key components include prepayments for products and services (RMB 52,736 thousand) and deductible input VAT (RMB 19,578 thousand)[158] Long-term Receivables The Group's long-term receivables slightly decreased to RMB 11,839 thousand as of June 30, 2025, from RMB 12,712 thousand as of December 31, 2024, primarily from installment sales contracts with terms of 1 to 5 years and significant financing components - Long-term receivables decreased from RMB 12,712 thousand as of December 31, 2024, to RMB 11,839 thousand as of June 30, 2025[160] - Long-term receivables primarily refer to amounts due in installments, generally over 1 to 5 years, and include a significant financing component[159] Short-term Treasury Bond Investments The Group's short-term treasury bond investments remained stable at RMB 160,083 thousand as of June 30, 2025, compared to RMB 159,374 thousand as of December 31, 2024, comprising redeemable fund products with a 3% fixed interest return, primarily backed by short-term US treasury bonds - Short-term treasury bond investments increased from RMB 159,374 thousand as of December 31, 2024, to RMB 160,083 thousand as of June 30, 2025[161] - These investments comprise multiple redeemable fund products with a fixed interest return of 3%, primarily backed by short-term US treasury bonds[161] Cash and Cash Equivalents, Restricted Cash and Short-term Bank Deposits The Group's cash and cash equivalents decreased to RMB 253,013 thousand as of June 30, 2025, from RMB 319,297 thousand as of December 31, 2024, while restricted cash significantly reduced due to resolved litigation, and short-term bank deposits with initial maturities over three months increased - Cash and cash equivalents decreased from RMB 319,297 thousand as of December 31, 2024, to RMB 253,013 thousand as of June 30, 2025[162] - Restricted cash significantly decreased from RMB 5,100 thousand as of December 31, 2024, to RMB 100 thousand as of June 30, 2025, primarily due to the resolution of pending litigation[163] - Short-term bank deposits with initial maturities exceeding three months increased from RMB 599,920 thousand as of December 31, 2024, to RMB 736,071 thousand as of June 30, 2025[162] Share Capital The company's number of ordinary shares and share capital remained unchanged at 563,779,000 shares and RMB 563,779 thousand respectively as of June 30, 2025 - The company's number of ordinary shares was 563,779,000 and share capital was RMB 563,779 thousand as of January 1, 2025, and June 30, 2025, remaining unchanged[164] Other Reserves The Group's other reserves slightly increased to RMB 2,295,802 thousand as of June 30, 2025, from RMB 2,295,189 thousand as of January 1, 2025, primarily due to share-based payments - Other reserves increased from RMB 2,295,189 thousand as of January 1, 2025, to RMB 2,295,802 thousand as of June 30, 2025[165] - The increase was primarily attributable to share-based payments of RMB 613 thousand[165] Warrant Liabilities The Group's warrant liabilities remained stable at RMB 35,318 thousand as of June 30, 2025, compared to RMB 35,347 thousand as of December 31, 2024, stemming from warrants issued to third-party investors in 2022 for future equity financing and classified as non-current liabilities - Warrant liabilities changed from RMB 35,347 thousand as of December 31, 2024, to RMB 35,318 thousand as of June 30, 2025[166] - Warrants were issued to third-party investors in 2022, granting them the right to subscribe for new shares at a preferential price in the next round of subsidiary equity financing[166] - As the next round of equity financing is not expected to commence before June 30, 2026, warrant liabilities are classified as non-current liabilities[166] Share-based Payments The Group operates a share award scheme to incentivize directors, senior management, and employees, with 174,001 unvested restricted shares in the company and 450,500 in subsidiaries as of June 30, 2025, and share-based payment expenses significantly reduced to RMB 613 thousand for the six months ended June 30, 2025 - As of June 30, 2025, the company had 174,001 unvested restricted shares with a 3-year vesting period and an exercise price of RMB 0.86[171] - As of June 30, 2025, subsidiaries had 450,500 unvested restricted shares with a 5-year vesting period and exercise prices ranging from RMB 1.00 to RMB 2.00[174] Share-based Payments (for the Six Months Ended June 30) | Expense Category | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Selling expenses | – | 3,099 | | Administrative expenses | 599 | 18,158 | | Research and development expenses | 14 | 985 | | Total | 613 | 22,242 | Trade and Other Payables The Group's total trade and other payables decreased to RMB 170,913 thousand as of June 30, 2025, from RMB 184,418 thousand as of December 31, 2024, primarily comprising trade payables, staff salaries and benefits, and a reduced provision for pending litigation and claims, with most trade payables aged within three months - Total trade and other payables decreased from RMB 184,418 thousand as of December 31, 2024, to RMB 170,913 thousand as of June 30, 2025[176] - Key components include trade payables to third parties (RMB 109,563 thousand) and staff salaries and welfare payable (RMB 43,426 thousand)[176] - Provision for pending litigation and claims decreased from RMB 4,313 thousand as of December 31, 2024, to RMB 716 thousand as of June 30, 2025[177] Ageing Analysis of Trade Payables (as of June 30, 2025) | Ageing | Amount (RMB '000) | | :--- | :--- | | Within 3 months | 44,539 | | 3 to 6 months | 17,271 | | 6 months to 1 year | 28,983 | | 1 to 2 years | 18,544 | | Over 2 years | 226 | | Total | 109,563 | Deferred Income The Group's non-current deferred income remained unchanged at RMB 7,402 thousand as of June 30, 2025, compared to December 31, 2024, primarily representing government grants received but not yet recognized in other income - Non-current deferred income remained unchanged at RMB 7,402 thousand as of June 30, 2025, compared to December 31, 2024[179] - Deferred income primarily represents government grants received but not yet recognized in other income[179] Related Party Transactions The Group's related party transactions primarily involve key management personnel compensation, which significantly decreased to RMB 8,669 thousand for the six months ended June 30, 2025, from RMB 51,380 thousand in the prior year, mainly due to reduced share-based payments Key Management Personnel Compensation (for the Six Months Ended June 30) | Compensation Category | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Salaries, wages and bonuses | 8,043 | 10,974 | | Contributions to retirement benefit schemes | 305 | 260 | | Other social security costs, housing benefits and other employee benefits | 321 | 278 | | Share-based payments | – | 39,868 | | Total | 8,669 | 51,380 | - Total key management personnel compensation significantly decreased, primarily due to share-based payments reducing from RMB 39,868 thousand in the same period of 2024 to zero in 2025[181] Contingent Matters and Commitments As of June 30, 2025, the Group had no significant contingent matters other than pending litigation and claims disclosed in Note 28(b), nor any material capital commitments - As of June 30, 2025, the Group had no significant contingent matters other than pending litigation and claims disclosed in Note 28(b)[182] - As of June 30, 2025, the Group had no material capital commitments[183] Events After the Reporting Period As of the report date, the Group had no significant events after June 30, 2025 - There were no significant events after June 30, 2025, and up to the date of this report[184]