财讯传媒(00205) - 2025 - 中期财报

I. Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income The Group's loss significantly narrowed for the six months ended June 30, 2025, primarily due to fair value gains on investments and reduced associate losses, despite a slight revenue increase and decreased gross profit Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data | Metric | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 15,744 | 15,331 | 413 | 2.69% | | Cost of sales | (8,100) | (4,897) | (3,203) | 65.41% | | Gross profit | 7,644 | 10,434 | (2,790) | -26.74% | | Fair value change of investments held for trading | 8,861 | (34,962) | 43,823 | 125.35% | | Other gains and losses, net | (1,355) | 22,097 | (23,452) | -106.13% | | Loss before tax | (376) | (25,701) | 25,325 | -98.54% | | Loss for the period | (376) | (25,701) | 25,325 | -98.54% | | Loss for the period attributable to owners of the Company | (829) | (25,167) | 24,338 | -96.70% | | Basic loss per share (HKD) | (0.001) | (0.031) | 0.030 | -96.77% | | Total comprehensive expense for the period | (1,445) | (41,367) | 39,922 | -96.51% | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total and net assets slightly decreased, with increased loans receivable and investments held for trading, reduced trade receivables, and higher current and non-current liabilities Condensed Consolidated Statement of Financial Position Key Data | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Non-current assets | 11,354 | 12,080 | (726) | -6.01% | | Current assets | 319,967 | 311,048 | 8,919 | 2.87% | | Trade and other receivables | 39,025 | 44,301 | (5,276) | -11.91% | | Loans receivable | 155,127 | 147,260 | 7,867 | 5.34% | | Investments held for trading | 83,918 | 74,049 | 9,869 | 13.33% | | Current liabilities | 152,548 | 142,071 | 10,477 | 7.37% | | Non-current liabilities | 24,797 | 25,636 | (839) | -3.27% | | Net assets | 153,976 | 155,421 | (1,445) | -0.93% | | Equity attributable to owners of the Company | 173,657 | 175,194 | (1,537) | -0.88% | Condensed Consolidated Statement of Changes in Equity Total equity attributable to owners of the Company slightly decreased for the six months ended June 30, 2025, primarily due to the period's loss and foreign exchange differences, with expired share options reducing reserves Condensed Consolidated Statement of Changes in Equity Key Data | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (HKD thousands) | | :--- | :--- | :--- | :--- | | Equity attributable to owners of the Company | 173,657 | 175,194 | (1,537) | | Non-controlling interests | (19,681) | (19,773) | 92 | | Total equity | 153,976 | 155,421 | (1,445) | | Loss for the period (attributable to owners of the Company) | (829) | (25,167) (H1 2024) | 24,338 | | Exchange differences arising from translation of foreign operations | (708) | (15,617) (H1 2024) | 14,909 | | Forfeiture of share options (share option reserve) | (5,717) | (215) (H1 2024) | (5,502) | Condensed Consolidated Statement of Cash Flows The Group experienced net cash outflows from operating and financing activities for the six months ended June 30, 2025, leading to a net decrease in cash and cash equivalents and a lower period-end balance Condensed Consolidated Statement of Cash Flows Key Data | Metric | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | Change (HKD thousands) | | :--- | :--- | :--- | :--- | | Net cash (used in) / generated from operating activities | (1,761) | 6,875 | (8,636) | | Net cash used in financing activities | (964) | (3,535) | 2,571 | | Net (decrease) / increase in cash and cash equivalents | (2,725) | 3,340 | (6,065) | | Cash and cash equivalents at end of period | 16,036 | 23,343 | (7,307) | II. Notes to the Condensed Consolidated Financial Statements Basis of Preparation and Principal Accounting Policies The condensed consolidated financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the Listing Rules, using the historical cost convention, with financial instruments measured at revalued amounts or fair value - Financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the Listing Rules, using the historical cost convention, with financial instruments measured at revalued amounts or fair value[11][12] - The amendments to HKAS 21 "Lack of Exchangeability" were first applied in the current period but had no significant impact on the financial position or disclosures[12] Revenue and Segment Information The Group operates three reportable segments: advertising services, securities brokerage services, and money lending, with advertising revenue increasing, money lending revenue decreasing, and zero revenue from securities brokerage services in H1 2025 - The Group has three operating and reportable segments: providing advertising services, providing securities brokerage services, and money lending[14][15] Revenue by Reportable Segment | Segment | H1 2025 Revenue (HKD thousands) | H1 2024 Revenue (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Providing advertising services | 10,357 | 8,259 | 2,098 | 25.40% | | Providing securities brokerage services | – | 156 | (156) | -100.00% | | Money lending | 5,387 | 6,916 | (1,529) | -22.11% | | Total Revenue | 15,744 | 15,331 | 413 | 2.69% | Results by Reportable Segment | Segment | H1 2025 Segment (Loss)/Profit (HKD thousands) | H1 2024 Segment (Loss)/Profit (HKD thousands) | | :--- | :--- | :--- | | Providing advertising services | (3,910) | (2,088) | | Providing securities brokerage services | (75) | 86 | | Money lending | 307 | (1,950) | | Consolidated | (3,678) | (3,952) | Other Gains and Losses, Net For the six months ended June 30, 2025, other gains and losses, net, turned from a gain of HKD 22,097 thousand in the prior period to a loss of HKD 1,355 thousand, mainly due to exchange losses and the absence of gains from deregistered subsidiaries Other Gains and Losses, Net | Metric | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | Change (HKD thousands) | | :--- | :--- | :--- | :--- | | Net exchange (loss) / gain | (1,355) | 2,121 | (3,476) | | Gain on deregistration of subsidiaries | – | 19,985 | (19,985) | | Total | (1,355) | 22,097 | (23,452) | Loss Before Tax For the six months ended June 30, 2025, the Group's loss before tax significantly narrowed to HKD 376 thousand from HKD 25,701 thousand in the prior period, primarily influenced by reduced finance costs and changes in bank interest income Loss Before Tax Components | Metric | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | Change (HKD thousands) | | :--- | :--- | :--- | :--- | | Loss before tax | (376) | (25,701) | 25,325 | | Bank interest income | (8) | (27) | 19 | | Finance costs | 436 | 1,264 | (828) | Taxation Hong Kong profits tax uses a two-tiered rate system, with eligible entities taxed at 8.25% on the first HKD 2 million of profits and 16.5% on the remainder, while Chinese subsidiaries are taxed at 25%, with no deferred tax credits in the reporting period - Hong Kong profits tax adopts a two-tiered tax rate: 8.25% on the first HKD 2,000,000 of assessable profits for qualifying entities, and 16.5% on the remaining profits[21] - Chinese subsidiaries are subject to a tax rate of 25% for both periods[21] - No deferred tax credits were recognized for the six months ended June 30, 2025, and 2024[22] Dividends For the six months ended June 30, 2025, the Board did not recommend the payment of any interim dividend, consistent with the prior year - No dividends were paid, declared, or proposed during the reporting period, and the Board did not recommend any interim dividend (2024: nil)[23] Loss Per Share For the six months ended June 30, 2025, both basic and diluted loss per share were HKD 0.001, a significant reduction from HKD 0.031 in the prior period, primarily due to a substantial narrowing of the loss attributable to owners of the Company Loss Per Share Calculation Data | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company (HKD thousands) | (829) | (25,167) | | Basic loss per share (HKD) | (0.001) | (0.031) | | Diluted loss per share (HKD) | (0.001) | (0.030) | | Weighted average number of ordinary shares (thousand shares) | 821,082 | 821,082 | | Potential dilutive effect of ordinary shares from share options (thousand shares) | 83,840 | 28,620 | | Weighted average number of shares that would have been issued at average market price (thousand shares) | (60,881) | (21,840) | | Weighted average number of shares for diluted loss per share calculation (thousand shares) | 844,041 | 827,862 | - Share options granted by the Company have a potential dilutive effect on loss per share only when the average market price during the period exceeds the adjusted exercise price of the share options[26] Property, Plant and Equipment and Right-of-Use Assets For the six months ended June 30, 2025, the Group made no acquisitions or disposals of property, plant and equipment, with depreciation expenses remaining stable, while depreciation for right-of-use assets significantly increased - For the six months ended June 30, 2025, the Group did not acquire or dispose of any property, plant and equipment (2024: nil)[27] - Depreciation of property, plant and equipment was approximately HKD 1,000 (2024: approximately HKD 1,000)[27] - Depreciation of right-of-use assets was approximately HKD 552,000 (2024: approximately HKD 259,000), representing a 113.13% year-on-year increase[27] Trade and Other Receivables As of June 30, 2025, total trade and other receivables decreased, primarily due to a decline in receivables from advertising services, while receivables from securities trading remained stable but with higher expected credit loss provisions Trade and Other Receivables Components | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Trade and other receivables from advertising services (net) | 3,592 | 8,868 | (5,276) | -59.49% | | Trade and other receivables from securities trading (net) | 35,433 | 35,433 | 0 | 0.00% | | Total | 39,025 | 44,301 | (5,276) | -11.91% | - The credit period for securities trading business and settlement period for cash clients are typically one to two days from the trade date[28] - The Group maintains strict control over trade receivables from its securities brokerage business and regularly reviews client credit limits and ratings[29][30] Investments Held for Trading As of June 30, 2025, investments held for trading, primarily Hong Kong-listed equity securities, increased to HKD 83,918 thousand, with fair values determined by market bid prices and classified as Level 1 fair value hierarchy Investments Held for Trading | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Equity securities listed in Hong Kong | 83,918 | 74,049 | 9,869 | 13.33% | - The fair value of investments held for trading is determined based on market bid prices quoted on The Stock Exchange of Hong Kong Limited and classified as Level 1 fair value hierarchy[31] Trade and Other Payables As of June 30, 2025, total trade and other payables increased, mainly due to higher payables from advertising services, while payables from securities trading remained stable Trade and Other Payables Components | Metric | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Change (HKD thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Trade and other payables from advertising services | 10,609 | 8,809 | 1,800 | 20.43% | | Trade and other payables from securities trading | 9,828 | 9,828 | 0 | 0.00% | | Total | 20,437 | 18,637 | 1,800 | 9.66% | - The average credit period for trade and other payables is 90 days, and the Group has established financial risk management policies to ensure all payables are settled within credit terms[33] Share Options For the six months ended June 30, 2025, 31,800,000 share options under the old share option scheme expired, with no expirations under the new scheme, leaving 25,440,000 and 58,400,000 unexercised options under the old and new schemes, respectively, at period-end - For the six months ended June 30, 2025, 31,800,000 share options under the old share option scheme expired, while no share options under the new share option scheme expired[34] Share Option Movement | Share Option Scheme | Unexercised as at January 1, 2025 (audited) | Forfeited during the period | Unexercised as at June 30, 2025 (unaudited) | | :--- | :--- | :--- | :--- | | Old Share Option Scheme (Directors and Employees) | 31,800,000 | (31,800,000) | 0 | | New Share Option Scheme (Employees, granted April 16, 2021) | 22,260,000 | – | 22,260,000 | | New Share Option Scheme (Employees, granted July 21, 2023) | 43,800,000 | – | 43,800,000 | | New Share Option Scheme (Luo Zhihong, granted April 16, 2021) | 3,180,000 | – | 3,180,000 | | New Share Option Scheme (Li Wei, granted July 21, 2023) | 7,300,000 | – | 7,300,000 | | New Share Option Scheme (Consultants, granted July 21, 2023) | 7,300,000 | – | 7,300,000 | | Total | 115,640,000 | (31,800,000) | 83,840,000 | - As of June 30, 2025, the number of shares issuable under the old and new share option schemes represented approximately 11.39% of the weighted average number of ordinary shares in issue[34] Related Party Transactions For the six months ended June 30, 2025, total key management personnel remuneration decreased to HKD 206 thousand from HKD 380 thousand in the prior period, primarily due to a reduction in equity-settled share-based payment expenses Key Management Personnel Remuneration | Metric | H1 2025 (HKD thousands) | H1 2024 (HKD thousands) | Change (HKD thousands) | | :--- | :--- | :--- | :--- | | Fees, salaries and other benefits | 202 | 202 | 0 | | Contributions to retirement benefit schemes | 4 | 4 | 0 | | Equity-settled share-based payment expenses | – | 174 | (174) | | Total | 206 | 380 | (174) | III. Business Review Advertising and Sale of Books and Magazines Advertising business, a primary revenue source, improved in H1 2025, generating approximately HKD 10.4 million and accounting for about 65.8% of total revenue, with the Group actively expanding digital media marketing and MCN businesses for diversification - Advertising business is one of the Group's primary revenue sources, with improved performance in H1 2025[40] - Revenue from providing advertising and marketing-related services was approximately HKD 10.4 million, accounting for approximately 65.8% of the Group's total revenue[40] - The Group has actively expanded its digital media marketing services and Multi-Channel Network (MCN) business since 2020[40] Securities Brokerage Due to continuous losses in the securities brokerage business, the Board has decided to cease operations and is in the process of surrendering its license to the Securities and Futures Commission, with brokerage services suspended since September 19, 2023 - Due to continuous operating losses in the "Securities Brokerage Business Segment," the Board has decided to cease operating the securities brokerage business[41] - The Group is making every effort to complete all necessary arrangements to surrender its license to the Securities and Futures Commission[41] - Brokerage services have been suspended since September 19, 2023, until further notice[41] Money Lending The money lending business, part of the Group's diversified financial services, generated approximately HKD 5.4 million in interest income in H1 2025, representing about 34.2% of total revenue, with credit risk managed through independent credit assessments, collateral checks, and regular monitoring - For the six months ended June 30, 2025, interest income from loans receivable generated by the money lending business was approximately HKD 5.4 million, accounting for approximately 34.2% of the Group's total revenue[43] - The Group manages credit risk through independent credit assessments, collateral value checks, and regular credit reviews[44][45] - As of June 30, 2025, the loan portfolio included approximately HKD 94.1 million in secured loans and approximately HKD 61.0 million in unsecured loans, with annual interest rates for both secured and unsecured loans ranging from 6.4% to 8.0%[46] IV. Management Discussion and Analysis Outlook and Prospects Despite global economic challenges like US-China trade tensions and geopolitical uncertainties, the Chinese economy is expected to rebound with government stimulus and domestic consumption growth, while the Group will strengthen financial services, expand digital media marketing, and explore new investment opportunities - The global economy continues to face significant challenges, including escalating US-China trade tensions, geopolitical uncertainties, and rising trade protectionism[48] - The Chinese economy is expected to rebound, with domestic recovery supported by government economic stimulus measures and growth in domestic consumption[48] - The Group will continue to strengthen its financial businesses, actively develop digital media marketing and MCN businesses, and explore other suitable investment opportunities for sustainable returns and maximized shareholder value[48] Financial Review In H1 2025, advertising services revenue grew by 25.4% year-on-year, securities brokerage revenue was zero, and money lending revenue decreased; overall gross profit margin fell to 48.6%, but fair value of investments held for trading turned from loss to gain, and associate losses significantly reduced, leading to a 96.7% decrease in loss attributable to owners of the Company - Revenue from providing advertising services totaled approximately HKD 10.4 million, an increase of approximately 25.4% compared to the six months ended June 30, 2024[49] - Revenue from securities brokerage business and money lending business was approximately zero HKD (H1 2024: approximately HKD 0.2 million) and approximately HKD 5.4 million (H1 2024: approximately HKD 6.9 million), respectively[50] - The Group's overall gross profit margin was approximately 48.6%, a decrease from approximately 68.1% in H1 2024, primarily due to a reduced revenue contribution from high-margin business segments[50] - Fair value gain on investments held for trading was approximately HKD 8.9 million (H1 2024: loss of approximately HKD 35.0 million)[50] - Loss attributable to owners of the Company was approximately HKD 0.8 million (H1 2024: approximately HKD 25.2 million), a decrease of approximately 96.7%, mainly due to increased fair value gains on investments held for trading and reduced losses from an associate[52] Use of Proceeds This section details the use of proceeds from the open offer and subscription of new shares; the net proceeds of approximately HKD 518 million from the open offer have been largely utilized, with HKD 10 million remaining for regulated activities, and the net proceeds of approximately HKD 47.8 million from the subscription of new shares have been mostly used for expanding advertising business, with HKD 1.2 million remaining Open Offer Net proceeds from the open offer were approximately HKD 518,270,000, largely utilized, with HKD 10,000,000 remaining for establishing and operating companies licensed for Type 4, 6, and 9 regulated activities under the SFO, expected to be used by December 31, 2025 - Net proceeds from the open offer were approximately HKD 518,270,000[53] Use of Proceeds from Open Offer | Intended Use of Proceeds | Actual Use of Net Proceeds (as at December 31, 2024) (HKD thousands) | Actual Use of Net Proceeds (for the six months ended June 30, 2025) (HKD thousands) | Actual Use of Net Proceeds (as at June 30, 2025) (HKD thousands) | Unutilized Balance of Net Proceeds (HKD thousands) | Expected Timeline for Full Utilization of Remaining Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | | Establishment and operation of Type 1 company | 275,000 | – | 275,000 | – | – | | Establishment and operation of companies licensed for Type 4, Type 6, and Type 9 regulated activities under the SFO | – | – | – | 10,000 | December 31, 2025 | | Acquisition of companies engaged in e-commerce platform development and operation | 124,000 | – | 124,000 | – | – | | Operation and development of money lending business | 110,000 | – | 110,000 | – | – | | Total | 509,000 | – | 509,000 | 10,000 | – | Subscription of New Shares Net proceeds from the subscription of new shares were approximately HKD 47.8 million, with HKD 46.6 million used to expand the advertising business, and the remaining HKD 1.2 million expected to be utilized by December 31, 2025 - Net proceeds from the subscription (after deducting other expenses) were approximately HKD 47.8 million, intended for expanding the advertising business[56] Use of Proceeds from Subscription of New Shares | Nature | Original Intended Use of Proceeds (HKD millions) | Actual Use of Proceeds as at Report Date (HKD millions) | Balance (HKD millions) | Expected Timeline for Full Utilization of Remaining Proceeds | | :--- | :--- | :--- | :--- | :--- | | Expansion of advertising business | 47.8 | 46.6 | 1.2 | December 31, 2025 | Material Acquisitions and Disposals of Subsidiaries For the six months ended June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries - For the six months ended June 30, 2025, there were no material acquisitions or disposals of subsidiaries[58] Material Investments As of June 30, 2025, the Group's investments held for trading (Hong Kong-listed equity securities) amounted to approximately HKD 83.9 million, with an investment in China Investment and Finance Group Limited accounting for 5.9% of total assets and recording an unrealized gain; the Group will maintain a diversified portfolio and closely monitor performance - As of June 30, 2025, the Group's investments held for trading (i.e., Hong Kong-listed equity securities) amounted to approximately HKD 83.9 million (December 31, 2024: approximately HKD 74.0 million)[59] Material Investment Portfolio | Company Name | Number of Shares | Percentage of Total Issued Share Capital | Market Value (HKD thousands) | Percentage of Group's Total Assets | Fair Value Gain on Investment (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | China Investment and Finance Group Limited | 13,000,000 | 3.2% | 19,500 | 5.9% | 2,210 | | Other securities | Not applicable | Not applicable | 64,418 | 19.4% | 6,651 | | Total | | | 83,918 | 25.3% | 8,861 | - The Group will continue to maintain a diversified investment portfolio across various business segments and closely monitor its performance to adjust investment strategies as needed[61] Liquidity and Financial Resources As of June 30, 2025, the Group's total equity slightly decreased to approximately HKD 154 million, mainly due to exchange differences, and the gearing ratio increased to approximately 53.5% - As of June 30, 2025, the Group's total equity was approximately HKD 154 million (December 31, 2024: approximately HKD 155.4 million), with the decrease primarily attributable to exchange differences of approximately HKD 1.1 million arising from the translation of foreign operations during the period[62] - As of June 30, 2025, the Group's gearing ratio (total liabilities as a percentage of total assets) was approximately 53.5% (December 31, 2024: approximately 51.9%)[62] - As of June 30, 2025, the Group had bonds payable of approximately HKD 20.9 million and other loans of approximately HKD 10.0 million[62] Pledge of Assets As of June 30, 2025, and December 31, 2024, the Group had not pledged any assets or bank deposits to secure bank borrowings or general banking facilities - As of June 30, 2025, and December 31, 2024, the Group had not pledged any assets or bank deposits to secure bank borrowings and general banking facilities granted to the Group[64] Events After Reporting Period Subsequent to the reporting period, the Company completed a rights issue in July 2025, raising net proceeds of approximately HKD 39.5 million, and its wholly-owned subsidiary, Honor Fame Group Limited, entered into an agreement on August 22, 2025, to conditionally acquire sale shares of BFB Development Inc. for HKD 38.22 million - The Company completed a rights issue in July 2025, raising total proceeds of approximately HKD 40.5 million and net proceeds of approximately HKD 39.5 million[65] - On August 22, 2025, Honor Fame Group Limited, a wholly-owned subsidiary of the Company, entered into an agreement with Brother Angel And His Friends Investment Ltd to conditionally agree to sell sale shares for HKD 38.22 million[66] Foreign Currency and Treasury Policy The Group's business transactions, assets, and liabilities are primarily denominated in HKD, USD, or RMB, with a treasury policy aimed at managing foreign exchange risk, and no hedging or speculative activities were undertaken during the period - The majority of the Group's business transactions, assets, and liabilities are denominated in Hong Kong Dollars, US Dollars, or Renminbi[67] - The Group's treasury policy is to manage foreign exchange risk when the Group's financial position is significantly affected, and no financial instruments were held for hedging or speculative activities during the period[67] Employees As of June 30, 2025, the Group had 48 employees in Hong Kong and China, a decrease from 55 as of December 31, 2024, with remuneration determined based on market conditions and individual performance - As of June 30, 2025, the Group had 48 employees in Hong Kong and China (December 31, 2024: 55 employees)[68] - Salaries, bonuses, and benefits are determined based on market conditions and individual employee performance[68] V. Corporate Governance and Shareholder Information Directors' Interests in Shares As of June 30, 2025, Mr. Li Wei held shares and share options in the Company, totaling 5.17% of the issued shares, while Mr. Luo Zhihong held share options, representing 0.43% Directors' Long Positions in Shares and Underlying Shares of the Company | Director's Name | Nature of Interest | Number of Shares Held | Number of Underlying Shares Held under the Company's Share Option Scheme | Percentage of the Company's Issued Shares as at June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | | Li Wei | Beneficial owner | 30,778,750 | 7,300,000 | 5.17% | | Luo Zhihong | Beneficial owner | – | 3,180,000 | 0.43% | Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares of the Company As of June 30, 2025, Mr. Li Wei held shares and share options in the Company, totaling 5.17% of the issued shares, and Yongrong (Hong Kong) Asset Management Co., Limited was a substantial shareholder, holding 18.60% of the shares Substantial Shareholders' and Other Persons' Long Positions in Shares and Underlying Shares of the Company | Name | Nature of Interest | Number of Shares Held | Number of Underlying Shares Held under the Company's Share Option Scheme | Percentage of the Company's Issued Shares as at June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | | Li Wei | Beneficial owner | 30,778,750 | 7,300,000 | 5.17% | | Yongrong (Hong Kong) Asset Management Co., Limited | Beneficial owner | 136,940,000 | – | 18.60% | Purchase, Redemption or Sale of the Company's Listed Securities For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities - Neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities for the six months ended June 30, 2025[72] Corporate Governance The Company complied with the Corporate Governance Code in Appendix C1 of the Listing Rules during the period, except for a more flexible approach to board meeting notice periods, with the Remuneration, Nomination, and Audit Committees all comprising independent non-executive directors - The Company complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules during the period, except for a more flexible approach to board meeting notice periods[73] - The Remuneration Committee, Nomination Committee, and Audit Committee are all composed of independent non-executive directors, ensuring independent oversight[74][75][76] - All Directors confirmed their compliance with the Model Code for Securities Transactions by Directors of Listed Issuers for the six months ended June 30, 2025[77] Board of Directors As of the reporting date, the Board of Directors comprised four executive directors, including Chairman Mr. Li Wei, and three independent non-executive directors - The Board of Directors includes four executive directors: Mr. Zhou Hongtao, Mr. Li Liang, Mr. Li Wei (Chairman), and Mr. Li Zhen[78] - The Board of Directors includes three independent non-executive directors: Mr. Luo Zhihong, Ms. Fang Ying, and Mr. Guo Hui[78]